Full text of Commercial and Financial Chronicle : June 11, 1942, Vol. 155, No. 4080, Section 2

View original document

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

Final Edition

THURSDAY

In 2 Sections

Section 2

vBeg. XJ. 8. Pat. OflU*]

Volume 155

Number 4080

New York, N. Y.,

I,v\.

War Eoonomics and Peace

ments

addressing the annual meeting of the Bankers Association for
Foreign Trade at the Seigniory Club (Quebec) on June 4, Graham
F. Towers, Governor of the Bank of
panada, said that neither do¬
mestic financial considerations or foreign
exchange considerations
have been allowed to obstruct the scope and character of Canada's
war effort.
"The war plans have come first," he said, "and financial
designed

fit the pattern of those
plans
to facilitate their successful

tion."

have

consumed

which

dollars

United

trol has worked.

"Although they do not

the

United

need

war

materials and

the

United

lating

States.

our

must

far greater quantities of
munitions and supplies to the

United

understand

that

country

its

financial

problems

liable to become acute.
these

problems

foreign

exchange

control

way.,

United

believe

will

.'...

2217
2223

2219
2220

2220
2223
2218

2221

2220

2223

Financing Declines.... 2219

Miscellaneous
Bond

NYSE

Valuations

Values..

2218

Up....
2220
Reports April Registrations... 2220
Freight Forwarders Under ICC
SEC

Control
Illinois

2220

...

Insurance Dept. Changes..
Exchange Appoint¬

Cotton
ments

2220

2221, 2222

Newspapers Raise Prices
2221
Urges Home Owners To Cut Debts. 2222
N. Y. Clearing House Amends

realized—that

Check

2216 )

on. page

Index...

NYSE

materials pur-

(Continued

Price

Automobile

States

war

the value of

reduce the amounts that must be obtained from the banks
in a way which must

Trade

April Hotel Sales Rise....
May Department Store Sales..

other things. It was
hope—and a hope which I

our

are

Facing

................2211

Non-Ferrous Metals Market

and many

■

instituted

accumu¬

guns, ships, chemicals, metals
such as aluminum and nickel—

pays in cash and sells on credit
or
gives its production away,

supported effort is to obtain the funds required to finance
the war from
savings, so far as that is possible, and thus

Borrowings..

Weekly Coal and Coke Output
2222
Weekly Steel Review....
2219
Output During May.......
2217
Moody's Daily Commodity Index... 2218
Weekly Electric Power Output.... 2217
Weekly Crude Oil Production
2221

agreed to
buy a considerable quantity of
war
supplies from Canada-

economist to

2211

Fertilizer

any

The

Kingdom and all the
fighting fronts. A person does

Member

State

Explaining the Hyde Park (N.
Y.) agreement, Mr. Towers had
the following to say:

ship

not need to be

not

Return

Insolvent

Rule.....

Natl.

Bank

2222

Dividends...

Imports Under WPB Control

2222

2210

Federal Debt Limit At May 31, 1942 2221
Illinois Bankers Ask Ceilings on

Salaries,

FROM WASHINGTON

Farm

Cleveland

Aides

Prices.....:.......

Victory

Fund

2213

Group

2213
Expands War Imports Buying
2213
Day Parade 2213
Named to War Damage Corporation
2213
v.....................

......

FDR Reviews Memorial

AHEAD OF THE NEWS

Restrict

Alcohol

Rubber

for

Synthetic

Use

2213

1941

Department Sales At Record.. 2213
coffee Surplus in Haiti
2213
Florida Pipeline, Barge Canal

By CARLISLE BARGERON
An

awful

Defeated

stew

brewing in Congress over Leon Henderson.
Symptomatic of it have been the reports that Jim Farley was to suc¬
ceed him.
Unquestionably these reports will have been definitely
Settled before this article appears. Whether they turn out to be true
otherwise is not of

much importance, in

Washington,

Colombia

2213
Extends 3% % Farm Mortgage Rate 2219
Vetoes High-Pressure Bond Sales
,.

Methods
First

2219

Quarter

circulated.
They reflect a restlessness in<$>
Congress over Henderson's growth housewives, the people who can't
in
power, which, knowing Con¬ get their sugar, their coffee, their
When the plain people, the
gressmen as we do, reflects a con¬ gas.
cern on the part of the people out
housewives—to harp upon these
in the country. It so happens that terms—are denied things and then

Quezon

Corporate

Earnings

Down

such reports would be

the report has gone far and wide
that Leon's OPA is very pinkish

hear

and that it is bent upon using

the

re¬

which

forms.

social

pet

the

administrators

impossible
even

•

political
Mr.

bound

situation

there

such

become

So,

that

unbear¬

the point I

that

Leon's

making, is

agency

OPA.

Leon is to be increased from now

The

OPA

is bearing down upon the qri. And sooner or later, in this
plain people, the housewives. It writer's opinion, he is bound to
so
happens that Donald Nelson's fall.
WPB has been bearing down upon
It is a long story, and an amaz¬
business men for a long time but ing one about Leon. The success¬
•

these
late

can't

victims

the

ful rise of

articu¬

Telephone
2220

Bureau

on page

2217)

Point

Bond

Drive

Starts

useful that

2224

FDR

2216

Welcomes Mexico

War

Ally.,... 2216

Bars Construction of Non-Essential

Plants .'...;.......................

Running through
whose

file

bound

our

correspondence,

......

1880.

subscriber

1887—another to

Can there be

any

doubt in

about the value of binding your copies of the
Chronicle, of having at your finger tips a complete
record of all important financial developments?
-The new
Financial Chronicle was designed for binding.
With the larger

your

mind

size, bound volumes will be thinner, will open flat and

will be easier
This is
we

want

handle.

Financial Chronicle.

.
.

2209
Semi-Skilled Labor
2215

Symposium

Lend-Lease

Price Control

Farm

Gas

Saving Will Not Affect
Rationing Status

2215

Survey Shows Small Scrap Rubber
Supply
2212
Efficiency Booklet............

Nations

Asks

(Continued

Three

2212

Balkan

And Peace
particular

any

special class

unwillingness of the

2212)

Requirements

duty of planning, not in the interest of
business group or labor organization, any
clique, any individual career, but in the name
,

The National Resources Board has had the courage and the
common

for

to pose this question to the American people:
fully employ all our resources, physical and human,can we not employ them in time
of peace for the

sense

can

war,

creation

good life for all

for

our

people?

120 billions, and

If we can raise
probably shall so

by the end of this year, employing more than half of
and planes and for the whole apparatus of war,
lack wit and the courage, after victory, to put this

raise it

guns

shall

whole

people ?
have

the

resources,

the machines and the

men.

scientific knowledge.
We have an
abundance of executive talent. It is in our power one day to
transform our wartime effort into wider peacetime markets,

have

the

technical

full

and

employment,

toward

maximum

production.

opportunity to achieve an economic victory at home
will match the military victory that must precede it.

have the

—President Seymour of
We venture to express

Yale University,
the hope that this learned leader of

thought will return to this subject at some future date and
make it clear to the many whose minds he influences that, as
we are sure he is well aware,
the attainment of the objectives
he so well sets forth requires a technique and mode of pro¬
cedure

winning

vastly different from
a

those suitable and effective in

war.

......»•.;»..v.. >... 2212

$137,000,000 for War Agencies. 2212

U. S.-Canada Income Tax Pact

Ratified;

on page

Wai Economics

that
to

2215

War

Must Tap New Sources

balance for the duration at least the

toward
2215

;.. 2215

Deliveries

May 1

'•*

campaign now about to begin may if
vigorously conducted do a good deal to counter¬

well and

2215

Declare

The bond sale

Economy on War Time

N. Y. City War Parade

Plant

forward until the fighting is over.
It may be
granted, that however heavy the tax burden laid
upon the people, the amounts collected will fall far short
of war requirements.
Every dollar that is brought into
being by further extension of the position of the.banks and
then passed on in the process of war
production to the
pockets of the rank and file, if permitted to, remain there,
will, by precisely that amount, tend to strain1 further
markets for ordinary goods which in the nature of the
case can
not respond by offering more
abundantly at the
present time.

gigantic economic machine to work for the prosperity of the
2216

Argentine Head Deplores Aggression 2212

suggestion—passed along to you because
get full value from your subscription to the

merely

you

time

taken for

2216

British Production Heads Visit U. S.

Financial

page

Day

Act

find

copies dates back to

1906—and still another to

2216

Empowered to Waive Anti-

Imminent

had the copies bound and kept for reference."

this

the national income to

Opposes Dictatorial Powers for

Duke

war and win it as
decisively and as quickly as
be, funds in unparalleled amounts must be raised from

2224

Policy G.oup for Manpower Board. 2224
Pay On Rio Grande 6s
2224

Draft of

have

with this
may

and interest of the whole Nation,

Basis

Worthy Cause

cause

2224

Earnings

.v.;........

2212

in¬

nay must, regret the highly artificial character the Govern¬
ment for years past has insisted
upon giving the market for
its securities, the fact remains that in order to
get along

Assoc.

Japan on Poison Gas Use... 2224
Reports Insured Bank

June 13 Mac Arthur

"The Financial Chronicle has been

2218
2218

Special Bond '
Plan

Trust Acts

One Reader Says...

worthy

We have the clear

Personnel....

Manufacturers

Canada's

our

which has enlisted the aid and
support of the financial community which has had long ex¬
perience in
the placement of securities throughout the
length and breadth of the land.
However much one may,

2217

Director

WPB

2217

Offer

Named

FDIC

It is

2218
West

Savings

Warns

supply as a result of the concentration of
the task of war production.

upon

2220

•.

War

Banks

dustry

Mortgage Lending

Construction

limited

2214

April Farm Cash Income
Treasury Silver for Aluminum

Austrian painter to

(Continued

plain people and the

Future

N. Y. City..

Increase

if it turns out that the

even

Plants
,

in reports about Jim Farley suc¬
the country at this time in which ceeding him, are wholly untrue,
there must bd perfect confidence, the fact remains that the heat on
one

Farm

Powers.

WPB

Installations

are

situation

Optimistic

Restrictions

It is

Roosevelt

likely to realize.

Manifestly
this
able.

its

effect

war

that

pinkish, it is just too bad.

otherwise would tend to flow into the market for
consump¬
tion goods many of which are
now, or soon will be, in

2214

Non-Farm Employment Rises
2214
Morgenthau Urges Cut in Personal
Spending
2211
Diplomat Exchange Ship Arrives.. 2211
New Dimout Regulations...
2219

Extend

aggravate the inflationary situation
same time absorb funds which

already existing, and at the

2213

U. S. Mission to

that

2223

Commodity Prices—Domestic Index
Carloadings
Weekly Engineering Construction..
May Volume Sets New Record...
Paperboaid Industry Statistics
Weekly Lumber Movement...

It has not been

are

high-powered campaign to sell Government obliga¬
throughout the land is about to
launched.
The purpose of the
well-organized and well-

tions to individual citizens

2222

General Review

debts to embarrass us
in the future.
We are paying

quantities of
supplies from

great

2218
2218

on New York Exchanges..
Odd-Lot Trading.

NYSE

been met.

2209

Yieids..
Yields...

and

Stock

NYSE

foreign commitments have

our

Kingdom, Mr. Towers stated:
We

the

Trading

used to saddle any of our bur¬
dens on the other fellow.
All

On the subject of Canada's fi¬
nancial
relationships
with
the
and

Prices

Common

States

heavily.

States

Bond

Such exports would

capital.

nadians feel that the Government
is
keeping its promise to tax

United

2209

Ahead
.

Moody's
Moody's

desperately
needed for other things.
I am
not going to go into details but
will only say that exchange con¬

....

Situation

Washington

News

Sept. 16, 1939. The first objec¬
was
to prevent the export

THE FINANCIAL SITUATION

2209

Regular Features
From

tive

speaking of the Govern¬
ment's policy of "pay as you go,"
as far as practicable in
financing
the war, he said he thought Ca¬

Copy

Require¬

(Boxed)

Financial

to<^

and'

execu¬

Vj'1" "'

Items About Banks and Trust Cos. 2224

complain of that fact."

"Victory Through Air Power"..... 2210

been

Editorials

To Fit War Plans, Says G. F, Towers

have

Price 60 Cents

GENERAL CONTENTS

Canada's Financial Measures Designed

measures

Thursday, June 11, 1942

All too

many appear

not to

realize this simple hut vital fact.

THE COMMERCIAL & FINANCIAL CHRONICLE

2210

•

:>M

•

Thursday, June 11, 1942

Editorial

this^date, it must appear that the accumulation of evidence,
;$iftce September,-1939; suffices, when properly analyzed,
7 \\""
Tot supply an irrefutable; ^answer to, the inquiry ^whether
r Uader WPB Control
that appearance is conformable with reality.
Major Sever¬
v
The War Production Board an¬
\ Although Major Alexander P. De Seversky's book; with sky so asserts and he insists .that the response is indubitably
nounced on June 2 that it will
the title heading: this article, became> available? butf two favorable to the supremacy of the air power. 7 He points to
take control of imports of com¬
-the-failure of British defense in Norway, where the splendid
modities for civilian use as well months ago it has already become a "best seller" in the.
>-as strategic war materials beginbook stores of New York City, Chicago, St. Louis, Boston^ English planes, the Spitfires and the Hurricanes, with their
ning July 2, under a revision of Pittsburgh, San Francisco, and, in fact, in forty.of the fifty- superior speed and greater armaments,? could not be used,
General Imports Order M-63 is¬
three cities from Portland, Maine, to Portland, 7Oregon, on account of their limitations of mileage in sustained
sued June 2 by J. S. Knowlson,
and from St. Paul to New Orleans, reporting to the "Herald* flight! on: the one hand, and tp the striking success; in tl^e"
Director of Industry Operations,
i Under
the June 2 order special
Tribune's" book review section.
It is an important' and evacuation of Dunkirk, where these planes could go arid

CiviNan i War

imports

'■

Victory Tkiougl^

will have to be obtained to import both commodities for civilian purposes. • ••
Jpermission

•1
f

The WPB already exercises con¬

trol

imports of strategic war

over

The
purpose
of the
order, says the Board's announcement, is to take advantage
materials.

•

new

-i

V of available shipping

by re¬

space

acquiring that commodities be imported in the order of their importance. The WPB sets up three
lists of commodities, with speci¬

*
•

instructions

fic

governing their
Commodities on lists
may continue to be im¬

did go, seize, and hold command of the air, upon the other
thought-compelling contribution to essential discussions and
-hand! as ktemonstratiorLvDunkirkp/lajor Seversky: soundly
abundantly merits the; distinction with which it : has, been
received.
Than its author,; none could be better qualified observes, was no miracle. * It was merely that, for the job
by experienceand enthusiasm,to discuss* the: problemsof just across the English Channel, the British had built better
aerial warfare; and the apparent primacy of air power in arid fasteri planes than the .Germans, had made enough of
current combat should draw to it the interest of everyday- them, and then used them with sound strategy and intelli¬
man who is
unwilling to abdicate his privilege of independ¬ gence. Under their commanding shelter, maintained for three
.

ent

thinking in- favor of brief authority, especially^as .'SuCh
authority is never unlikely'[to be, as the author suggests,
prejudiced in favor of its own decisions which are-now-re^
quiring reconsideration. •
!
*
/V
'
^

Born in Russia 48 years ago, Major Seversky
American citizen in 1927; he had come to this

importation.
I

and

under

but

existing

such

ported
r

contracts

all

contracts,
must

reported immediately to the WPB,
while existing contracts for im¬
portation of commodities on List
III will not be allowed to stand.

V rules
*

for

the

lows:

;

}

I—No

List

person,

except

\ Government agencies, may imX.

purchase for import or
importation of any
material on this list except by
port,

contract for

special authorization of the Di¬

;

rector
7

Operations.

Industry

Applications for this permission
must be made on Form PD222-C. Imports may continue to

must
to

existing

con¬

but all such contracts
be reported immediately

tracts,
,

under

made

the War Production Board.

After commodities

on this list
imported the pwner cannot
sell, process or move them be¬
yond the place of initial storage.
He
can
sell
them
to
Government agencies, or apply
are

authorization

for

them

move
>

•

process

Form PD-222-A.

Reports of imports must

made

Form PD-222-B by all

including Government
agencies, to Collectors of Cus¬
persons,

before

toms

entered

warehouse,

materials

the

for

are

for
withdrawn from

consumption,
or

With the exception

warehouse.
of this

provision regarding Gov¬
agencies, this method
of handling imports is substan¬
tially the same as that now in

ernment

force.
List II—Commodities
II

List

subject to the same im¬

are

as
those on
Permission
to ' import

regulations

port
List

must

sought

Form PD-

222-C, existing contracts must
reported, and reports on PD-

222-B must be made to the Col¬

lector of Customs.
After

legal importation has
been made, however, commod¬
ities on List II may be sold,
processed or consumed with¬
out restriction, insofar as M-63
■

faded

out

the

first

World

War.

Even

before

his

long as it1 was necessary; 887

non¬

descript water-craft, anything that could float and was navi¬
gable- upon the narrow-water, including\eveni row-boats,
But. with only 222 .vessels belonging to < the Royal-Navy,
rescued 335,000 men who, without this essential protection
from the air, would have 'been irretrievably doomed to
cleath or capture.
Nor was Crete, where the. limited iir
force held in Egypt was ineffective-and) the air supremacy
of. the Axis Powers was undeniable, a miracle; nor the indMity^of^the British"-to prevent "German reenforcements
reaching General Rommel, in Libya.
These reenforcements of men, heavy tanks, and other equipment and sup¬
plies, crossed the Mediterranean almost freely, under the
protecting aegis of Axis air power, mainly effective because
Britain had omitted to establish and equip African air
bases (as the Germans had set them up promptly in Nor¬
way), while it had held most of the southern shore of that

citizenship, he. was made a consulting engineer by our
War Department, and served as a staff adviser to .the late
General William E. ("Billy") Mitchell, whose early and
enlightened anticipations of the development of aerial com¬
bat are now recognized as wholly sound and uncommonly
prophetic, although they then led to his court-martial and sea.
•;*
\
;
retirement from the Army
in appeasement of enmities
Major Seversky's criticisms, throughout the book, of
aroused among much smaller men holding places of higher
the recent practices and organization of military aviation
authority.
His preliminary education was gained in the in the United States
are; severe and scathing.
Nowhere
Russian Naval Academy and in the Military School of
does he measure his words with a caution which, under the
Aeronautics, at Sevastopol, in the Crimea.
After losing a
circumstances, might be unpatriotic, and nowhere does he
leg in aerial fighting, he became,, when 23 years old, Chief stint his condemnation of that which he considers
,

reckless,

of Pursuit Aviation for the Baltic Sea.

prejudiced, or lacking in clear purpose or intelligence.
this country, his non-military activities have been
First, and primarily, he attacks, and to the laymen it seems
almost all connected with aviation progress to which he
with
irrefutable
documentation
and
logic, the system
has made many and very notable contributions.
In his which divides our air power, such as it is, into two usually
book, he is frankly an advocate of reliance mainiy upon
separate and sometimes competitive contingents, thus or¬
aircraft for the attainment of military aims, but, as an ad¬
dinarily preventing their best utilization in furtherance of
vocate incomparably equipped, it cannot be contended that
important aims, and constituting an insurmountable ob¬
he is not fully entitled to a complete and respectful hearing
stacle to the wholesome development of a unified aerial
and, at the very least, to unprejudiced review of the facts
strategy.
And he points to "the qualitative superiority of
and arguments which 1 he presents.
It may be that their British aviation," the military aircraft equipment of which
full acceptance must be equivalent to condemnation of
he declares to be, at this hour, "the best in the world," in
principles and practices upon which vast public interests demonstration of the
superiority of the English system
seem
already to have been staked, possibly in ignorance or in which the air force constitutes7 an
independent arm,
recklessness born of prejudices long established. i If, how¬
completely equal in its freedom from exterior rivalry or
ever, the principles have been wrongly weighed and erron¬ control to the
Army or to the Navy, but fully co-ordinated
eously determined ; and the practices are indefensible, with them both whenever
strategic combinations and uses
In

reformation and reversal could not be too immediate

too

complete.
It is for nothing less that the author contends
and, unless the facts which he alleges with full particular¬
ity can be refuted, his conclusions appear to be impregnable.
As to the broad factual basis, Major
Seversky repre¬
sents that, today, neither operations
by armed forces upon
the land nor naval operations against coastal defenses or
upon the high seas can prevail over enemies making: com¬
petent use of air power, unless the surface forces are pro¬
tected and aided by aerial forces
sufficiently superior, ih
the quality and extent of their equipment and in the ele¬
ments of energy and direction, to "take command of the
skies" overhanging and encircling the arena of conflict.
Underlining and emphasizing this dependence of the land
and

-sea

forces

.the Sheltering! might

are

indicated and

many,

also,

approved by the final authority.
In Ger¬
he points out, the separate Luftwaffe ranks

independently and equally -with; the separate Army and
the

the separate Navy.
"At present," he says, with the
emphasis of italics, "we have no air power at all." That is
not, of course, to say that we have no aircraft planned or
intended for .military operations.
He distinguishes, and
With, reason! gpp^entlyn 01^ thevsidey of this;?argument <7—
.

"At present we

have, no air power at all: We have a miscellany
bad, and indifferent, but no air power in the
have defined in these pages. ♦ If the production pro¬

airplanes, good,

sense

that

is carried out in full, we shall, be no
since these planes will not reflect a
unified aerial strategy to be used by a unified air command.
We now possess a variety of aircraft that7 comprise; a first-rate
naval arm, and an amorphous mass of army planes with great latent
possibilities, ; Both these accessories, no matter how large they
may become, would still remain weapons of the two services, unfitted
both physically and psychologically * for the tasks ; of pure aerial
gram

of 185,000 planes

nearer

...

genuine air power

—

and defend or attack in three dimensions,! he
that, alone among the potent forces of conflict, the
orders which provide sufficient
agencies of air power are capable, at all times and every?
control over their use, or no
where, of ^independent bffensiye7:aRdv*defensive ;actib!b ■waffare;^^;:';-;;;;^;^
control is deemed necessary. r
If warranted, this is mordant criticism and condemna¬
without the support of any .auxiliary. forces whatsoever
7 List III—Existing contracts for
is

concerned.

ties either

country

a/member of the Russian* Aviation

Missiori; representing
the Kerensky government, and offered his services as a
Federal [aeronautical engineer and test pilot in aviation
when Soviet Russia accepted the Treaty of Brest-Litovsk
as

and

II and III, setting up
importation of the
commodities
on
each list, folLists I,

;

became

tirffour*; days; that is

commodi¬

These

are

covered by other

importation of commodities
List

III will

stand,

not

those

as are

two lists.

allowed

the other

Specific authorization

for import must be obtained on

Form

PD-222-C

regardless

existing contracts.•
After
are

materials

imported they

this

may

list

be dis¬

posed of without restriction, in¬
sofar

made

this order is

that

except
to

the

concerned,

reports
Collector

toms.

must
of

Cus¬

can

move

asserts

the ground or upon the waters. Aircraft, of tion of a system that is confessedly and completely repug¬
construction, having adequate capacity in their nant to the, principle that our author so sturdily supports.

whether upon
modern

range of operations, provided with suitable defensive and
offensive armaments1, with specializations of function
adapt¬

ing them to their respective and specific assignments of ef¬
fort, competently manned and directed with proper energy

perusal of the book is recommended, for at least
prima facie case appears to have been made upon this

Studious
a

imminent and

unquestionably vital question.

Space unfortunately precludes even reference to many
and intelligence, can independently and
successfully defend more detailed but seemingly well-supported criticisms of
any area or position, or can attack without land or water sup¬ methods "that may have controlling influence upon the
port any place or stronghold and obtain the victory. 7 In duration and consequences of the pending conflict.
If
neither case can such air power fail/unless it is met and
Major Seversky is not completely wrong, two-dimensional
overwhelmed by a superior force operating freely within warfare is a thing of the past, made substantially obsolete
the

same

air force

This

three-dimensional
can

meet and

certainly

arena.:

overcome

seems

That

air force.

make

sense.

only by the evolution of fighting aircraft and the additional
'
developments in that field already plainly promised and
Moreover, at in sight, Yet the United States is eqgaged in building a
say,
.

Volume 155

Number 4080

■

THE COMMERCIAL & FINANCIAL CHRONICLE

jtvro-qcea^

2211

an ^cost
;in rfmpcrtenL
might anything that the world ever saw before, as useless'
; as the pyramids of Egypt unless adequately defended from
the air, and as superfluous and
/While some of the heavy industries show slight setbacks for the
unnecessary (although in¬
volving heavy;1 and ;• continuing maintenance expenses and 'week,'figures of production, generally, are substantially higher than
last year,Steel production is scheduled this week at 99.3% of capac¬
'consuming a' huge aggregate of much needed man-power) ity/unchanged from last week, the American Iron & Steel Institute
[vvhen 'thus adequately protected and supplemented by air/ announced. At the current'rate, output for the week is indicated at
; craft as
any i other inconceivably wasteful expenditure' of T,686,700 net• tons of ingots.//-//;
;-./a:t •/
v
: A
month ago operations were<^
materials and energy^
It is France!& illusory MaginotvLine^ on a basis of
the- down

fairly distributed. They will be
disappointed in their leaders

The State Of Trade

only if those leaders fail to ask
them for all-out effort.

Concerning the buying of War
and Stamps, Mr. Morgen¬

Bonds

thau said:

/ '

I am-very

over

^
'

Germany^ unn^essary /West^ Wall, Finland's wasted :Man^
nerheim

but tLe

Line, repeated in effect upon the:water, but with/
ex^se ;thai the stern logic': of facts has not demon¬

strated the

tons

99.6%, or 1,691,800
weekly basis, the high

grade.

pointed

out that the rate of consumer

•

tons;

1942.

( Business

war

has already proven

most vulnerable of all water-borne craft

that they
and

are

the

h-ours,

increase of 12.5%

over

limited by the; corresponding week in 1941,

/inescapable structural * necessities - that they;

can never aflord space for aircraft of the highest efficiency/ or .even; of
•tolerable > efficiency, < except' for uses within the
rapidly

Sepprding to the Edison1 Electric
Institute;
v

'During the week ended May 23,

•the

amount' of

distributed

electrical

energy

the

industry was
dwindling; areas still' inaccessible to land-based aerial
3,379,985,000 kilowatt hours, point¬
-during the brief period that any such areas can ing to a; decrease of 1.4% in out¬
/continue to exist.
We arej still, or lately have,been/pro- put,; compared with the current
:
ducing' large quantities of planes of "pet obsolete models," Week.
Carloadings showed a drop of
known to be "tactically worthless," and defending them in
5% for the week. The Association
costly publicity paid for out of taxation or borrowing.; We bL American Railroads reported
are
producing, ostensibly for use in pursuit planes, large that 795,756 cars of revenue
numbers of engines of only 1,150 horsepower and some- freight were loaded during the
1 what unreliable in use, although we might have substituted week'ehdmg May 30.
; This' rwas a decrease of 41,992:
'production,of the splendid British engine, of almbst. twice cars, oir
5% compared with the
that, power rcapacity ,and.:of, demonstrated excellence,; the
preceding week, a decrease of 6,/NAPIER SABRE, vThe great output of planes now 'in .027 cars, or. 0.8%, compared with
mass-production includes types selected for standardization a*year ago, and an increase of;

forces and

ing

156,636

cars,
with 1940.

dor

fng everything that is plainly; within our great capacity^ to
develop the power and -range which are the obvious essen¬

•

/The

24.5%

past

compared

engineering!

success

•

sound direction from the

nor

top yet points plainly to even

tolerably mitigating improvement, let alone to satisfactory
development.

-These criticisms

are

not

ours.

by Major Seversky seems supported by this series of catas¬
trophes to their naval craft, distributed among the warring
powers

with

some

equality, all occurring while they were

venturing to operate without' protection, or with insuffi¬
cient protection, "from the skies," and by the successive
and terrifying devastations within the last ten. days, at

Cologne, Essen, and other places in Germany and within
the occupied regions of Flanders and France.

"Victory Through Air Power," is the. title ^of Major

Seversky's most timely study, Had it been entitled "De^
Through Air Weakness," the same thoughts might have
been indicated, merely from the opposing angle of reflec¬
tion. * The cited author would: be radically in error, and
we doubt that he can be, unless both victory and defeat'are
within the potentialities of air power, to be determined in
the:vlast eventuality, by the relative competence or ;defec-?
tiveness of its management.
The people of /the: United
States may ponder these alternatives.
V.\

$248,611,000 of the work for'
period.
/ \;
May the heavy engineering

also, and

persists

tivities

for

Department of Agri¬
culture announced on June 3 that
no
cotton:,would be sold by the
The U. S.

Commodity
under

the

Credit
General

Corporation
Cotton

Sales

program; during the month -of
June.
The Department likewise
said:
The
1

the

feel
to

new

export

177,636 bales

that

be sold dur¬

of cotton

can

ing the calendar year 1942 with¬

sales

uses are

and

May 30, com¬
pared with the same week a year
ago, according to the weekly fig¬
made

public by the Federal

Reserve Board.

Business

civilian

in¬
dustries, which reached new peaks
in
1941
and
continued
at
high
levels in the early months of 1942,
not "only has fallen off sharply in
recent weeks,' but has developed
into.a

highly/confused
over,

recent

ton. rulings/ deep
of

rumors

and

goods

some

substantial

Un¬

Washing¬
over

concern

things

state

trades, observers state.

certainties

come

decline in

determined.

determination

this

further
as

announcement
to

will

being

produced

rate. This

con¬

amazing

borne out the other

was

day

when Robert; P. Patterson,
Under-Secretary of War, declared
that the Army now has all the
weapons

can

send abroad under

present: shipping

conditions

also: enough to arm every
in the United States.
;■

additional sales

the

General- Cotton

Program.-

advance

last

develop

products will

purchase

The

belief

purchases

considerable

curtail

but the fact that

now,

sales

stocked up will not

long

the buy¬
is present and future
shortages are feared.
C
so

ing power

Morgenthau Urges Gut

our

the

ter

June

that

any

person

"who chooses this time to go on a

buying spree is committing an act
of sabotage against our war ef¬
fort" and that those who spend
money
extravagantly and care^
lessly "handicap our war produc¬
tion program."
Inaugurating a series of weekly
radio addresses, sponsored by the
Office of Facts and Figures and
designed
to
explain
President
Roosevelt's

anti

inflation

pro¬

gram, Secretary Morgenthau said
that the "patriotic thing" to do

want

deal

Our

to
ac¬

shall have af-

Whatever

war.

operation

will

success

voluntary

help

co¬

the
pattern of the post-war world.
to

set

The comments above by Secre¬

tary

Morgenthau regarding the
pending tax bill, and his expres¬
sion of hope that it cannot be said
that it

"too little and too

was

resulted in

between

conference

late,"

June 4

Mr.

Morgenthau
and
House Ways and
Means
Committee
drafting
the
bill.
Following the conference,
Chairman Doughton of the Com-*

members of the

Spending

Secretary Of the Treasury Mor¬
declared in a radio ad¬

our

great
future—now.

achieve

mittee

In Personal
dress

build¬

are

and

kind of world
v

volume

buying accomplished
August enables con¬

consumers are

than

tions—now—will determine the

later

to postpone many types of

sumers

even

that

children.

can

shape

become

issued

statement

part, that it

the

remarks

made

Morgenthau in
dress
not

did

was

not

intended

Committee

recent radio ad¬

reflect

and

reflect

saying,
"agreed that
by Secretary

its

were

the

upon

procedure

writing the pending tax bill."

Diplomat Exchange Ship
Arrives In New York
The

Swedish-American

liner

Drottningholm, chartered to

ex¬

change diplomatic representatives,
arrived

New York

June

with 908 passengers, most of them
nationals of the United States and

Latin American countries who had

been interned by Germany and
longer, to eat simpler meals," and Italy. The most prominent of the
"to
do everything - else
possible returning diplomats was Admiral
to cut down on personal spend¬ William D. Leahy, Ambassador to
the Vichy Government, who had
ing."
been recalled by President Roose¬
The
Secretary,
pointing
out
"is

old

make

clothes

last

and

soldier

ican people
He

added

at this critical time."
the

that

tax

proposed is in line with the "basic
principle of the ability to pay"
and

effect to

gives

determination
allowed

Saying he

people's
one

amass

riches

war."

this

the

that "no

shall
out

"shocked" at the

was

full and fair taxes

food,-

are

the

munitions; and

other

equipment.
1
r
■, ,
,
/ In many civilian goods indus¬
,

in retail trade the pic¬

ture is not:a

happy

one..

income ^producing

Business

industries

regulations and
action

concern over

what

the War Production Board

is planning in limitation of retail
and wholesale

twin troubles

men.

inventories

are

bothering most busi¬
•

•

retail

business itself

time
is

order

total

of money borrowed
ported by Stock Exchange

ber firms

re¬

mem¬

of the close of busi¬

May 29 aggregated $324,410,a
decrease
of: $10,736,944
from the April 30 total of $335,147,820. ■
/ ;

ness

avoid

war con¬

"paying

The following is the Stock Ex¬
Morgenthau added that change's announcement:
The total of money borrowed
the Treasury is determined; "to
from banks, trust companies anc
make- the * offending
companies
its."

their prof¬ /

Mr.

other lenders in the United States

pay."
"With respect to

the hew tax bill
now being written by the House
Ways and Means Committee, the
Secretary expressed the hope that
-

it cannot be said that it
little and too late."
.

•The

people

have shown in

was

this

country

thousand ways

excluding borrowings from othei
members of national securities

changes
Stock

"too

He added:

of
a

that they are not

mood for

the

reported

New

ex*

York

Exchange member firms
close

business

May 29

1942, aggregated $324,410,876.
-

The

total

compiled

money

borrowed

the same basis, as o:
-either financial
the
close
of business
April 30
or military.
They will be criti¬
cal only if the burdens are un¬
1942, was $335,147,820. :
half

All of the this comes at

when

the

companies with

tracts

NYSE Borrowings
The New York Stock Exchange
announced
on
June
3
that the

being distrib^ 876,

corporate expenses
uted by

d'Affaires in Berlin; /

program

large

un¬

Sales

the

extravagant salaries, bonuses and

ness

der

difficult

means

ourselves

easily change, how¬

many

earnings

for

now

supplies on
hand and in work that the Army
is planning to build a network of
storage depots to house reserves

So t

that

current

When

made

little incentive

should

Bonds.

buying account largely for
the
disorganized conditions and
velt for consultation. Other rank¬
.that the war is now costing $130,for the drop ir\ retail sales.
ing diplomats included Herbert C.
Fortunately, the unsettled state 000,000 every day, said that the
Pell, former Minister to Hungary;
of business in the civilian goods $8,700,000,000 in new taxes which
George
Wadsworth,
former
Administration
has
recom¬
trades has not spread to the war the
Charge d'Affaires in Rome, and
industries. There things are boom¬ mended "is the very least that
Leland B. Morris, former Charge
ing; armaments of all kinds are we can afford to ask of the Amer¬
sumer

1,500,000

sales for

could

ing the kind of future

genthau

virtually at a standstill. Lack of
Agricultural Adjustment
clarification of the Office of Price
Act of 1938, as : amended, will
Administration's i price-? ceiling
> be
held until the requirements
for

view

that. It

purchase for future needs. This

ever,,

10%

personal spend¬
average of at

put

War

But

and

quotas,
month
after
month, is an indispensable part
of the
financing of the war.

general price ceiling
effect, many consumers

there

who

The steady fulfillment of War

easily rise
again, ob¬

level

all

program,

Bond

Since the
went into

involved

of the

made

remaining

limitation

bales specified in Section 391-C

month

for the week ended

many

could

1941

state.

servers

ac¬

store sales on a
country-wide basis were off 11%

tries ahd

the

Federal

$949,400,000./
Department

ures

sales

the

above

regular income will have

least

considerably larger
long as this condition

quotas and
part of the

vital

to cut down

purchasing power is
higher than a year ago. Store

vious records at $1,044,572,000, the

publication reported1.

get

into

are

reach those

carry out
President's

Consumer

construction total eclipsed all pre¬

feat

No Sales Of CCC Cotton.

accounted

For

the

specialized equipment necessary, as the case stands, to
'pass upon their finality or force. But they are serious in
the extreme and they emanate from a?qualified^and paf
.triotic source.
They cannot% properly be met by silence
and the public ought not to accept irony or vituperation in
,lieu of specific and detailed candor and complete respon¬
siveness.
Open discussion could not possibly aid the enemy
a tithe as much as
secretiveness and persistence in error
would injure the whole people.
Such discussion is vitally
needed and may be indispensable pre-requisite of im¬
provement and, therefor, of victory not too-long delayed.
Unquestionably, the long-accepted precepts of Admiral
Mahan, who thought naval power to be our exclusive re¬
quisite for defense, have lost their force through the rapid
progress of aviation. .If not before, they sank forever to
the floor of the oceans with the destruction, by aircraft, or
through their operations, of the BISMARCK,.the GLORI¬
OUS, the REPULSE, the ARIZONA, the HARUNA, and
the PRINCE OF WALES.
Everything charged or asserted

construction

the. latest

■"
V
1
We do not pretend to

; :;

Federal

for

are

lieve.
far

and in July
thereafter we

billion dollars.

expect a

ing

construction volume totaled $274,-; since

in the warfare of the skies and the real and 971,000, compared with $163,227,jPOO, in, the * previous, week; -and
final test of vthe intelligence with which the war "effort :of
$123,570,000 in the corresponding
any people is directed.
In faqt, our military aviation is period a year ago, the "Engineer¬
"still, in a primitive state," and neither official realization ing News-Record" reported.

tials of

$800,000,000,

and every month

likely to become more favorable
again soon, there:is reason to be¬

stocks

shall have

much better in June and

the

department store sales
are running 10 to 15% under last
year's level now, comparisons are

total

reached

following months. The
quota for June has been fixed

While

date.

;

week's

;

about 5%.

which "have outlived their usefulness" aud we are not

down

are

But

for the

our

month

today is off from

period, sales

1941

its

futility of the -waste.;: As. part. of .that-huge
^Elptrlq/p6wer production for 25 to 30%, compared with the ac¬
/navy;/we * are / including many ; ships to be: used, ?vif ^they the Week-ended Saturday, May 30, tivity prevailing earlier in the
gever fare used at .all/as; aircraft- carriers.; As to such/car- amounted, to 3,322,651,000 kilowatt year. As against the correspond¬
•riers, the present

May and that

for-that

$634,000,000.

buy¬

of; the year/- For the like 1941 : ing has dropped sharply from
efek'? was 1 *591300:■ high levels of the first quarter

month of

went

national quota

our

sales

happy that

measures,

THE COMMERCIAL & FINANCIAL

2212

THE FINANCIAL SITUATION

(Continued From First Page)

;

politicians to lay taxes proportionately upon those elements
in the
population whose income will be most largely in¬
creased by reason of the war production program.
To do
so, however, it must be directed not merely at the usual
list of the security salesman's prospects, but also persist¬
ently and effectively at many thousands, yes millions, who
have not in the past been habitual purchasers of secur¬
ities.
Many of these latter would normally be regular
purchasers of stamps rather than bonds, but they must not
be regarded either in Washington or elsewhere as too "un¬
productive" to be worth while. The success of this cam¬
paign can not be measured solely by the number of dollars
/raised.
It is important to. tap the idle funds of investors,
large and middle class, of whom there are many, but it is
yital that these war obligations absorb directly or indirectly
;a very substantial proportion of the current earnings of the
vast rank and file—and the aggregate number of dollars
from this source need by no means be negligible even

■

small.
x
: v
The campaign to be really succesful in the larger and
deeper sense must, moreover, be conducted on a rational and
forward-looking basis.
Necessity has already obliged
those who used to preach improvidence as an economic
virtue and condemn thrift as of doubtful wisdom, to shift
their ground considerably.
Many of them are now among
the most emphatic exponents of "sacrifice" and of "doing
without" not only to relieve pressure upon markets but to
make possible systematic and in the aggregate large con¬
though the purchases of each investor be

Survey Shows Little
Scrap Rubber Available
scrap

canftot

lessen

used tire

other than that marked

previous years.

nations

The statement

issued by the company also says:
A

shortage

the

1941

sur¬

plus of tires is foreseen due to
the fact that old tires have found

back into use via the
market, which sprang
with the restriction of new

*tire

sales

^ *

v;'

the

country's
.and

rules

historic

out by

guiding

the, democratic

pounds of
tires a va i 1 a b 1 e
714,000,000
pounds were consumed by re¬
claimers
last ; year,
leaving a
surplus of 890,000,000 pounds.
The study estimates that about

feeling which, since the eman¬

tions of

With

costly blunder, and there appears to be some danger
such a'mistake.
In the first place, most of those who

question there will be a
them over the

the

republic,

has

molded its institutions and

directed its

ways

Argenina

s u r

u s,

renew

'Beyond
mate is

frarfkly speculative, but
supply

is believed to be about 25%

1939,

Some such

Jhese years the esti¬

the recoverable invisible

for

220,000,000 pounds, and

unless

greetings, I
the assurance of

On Three Balkan Nations
June;

ing

or¬

been the least active.

Plant Efficiency
A

booklet

Affairs;

73 votes in favor of
on

message

nize

state

United

States

June

Congress

that

asking

taken

were

special

from President Roosevelt

recog¬
between the

war

and

"instru¬

these

ments of Hitler."

The President,

noting that the three governments
had

declared

against

the

States/said they "are

United

now

war

engaged in military activities di¬
rected
and

against the United Nations
planning an extension of

are

these activities."
declared

the United States

war

Dec.

against
12 and

Bulgaria and Hungary on Dec. 13.

Approval

declarations

the

puts the United States formally at
with

war

six

since

nations,

war

with Japan was declared on Dec*
8 and with Germany and Italy on
Dec.

11.;

The

resolutions,

Congressional

differing only with respect to
naming the countries separately,
read

follows:

Bulgaria and the Government
the people of the United
States and making provisions to
and

prosecute the same.
J
Whereas the Government of
^

Bulgaria has formally declared
war
against the Government
and the people of the United
I' States of America; therefore be
it

Resolved, By the Seriate and

$7,-

House of

447,075 for the Office of Civilian
Defense; $7,216,515 for the Office
of Defense Transportation; $15,-

state of

war

and

States

America

assembled:

Congress

Efficiency—Ideas and Sug¬ ministration.
gestions on Increasing Efficiency
in Smaller Plant's." It is in simple
Ratify U. S.-Canadian
terms and is designed primarily
for smaller war plants
Income Tax Convention
or
for
a blunder of the first order of magnitude to "sell" the pub¬
plants which are just getting into
The Senate on May 28 ratified
lic the idea of buying war bonds, or of saving and investing
war production and which might
the
convention
between
the
in any form for that matter, during the war in the spirit be able to increase
production by United States and Canada provid¬
of "Xmas savings" or for purposes of a similar sort.
The a study of efficiency procedures. ing for avoidance of double in¬
of
Copies may be obtained from come taxation, modification
savings of the people, and a great deal more, are today
certain conflicting principles of
being "sunk" in the manufacture of guns, tanks, ammuni¬ regional and local offices of the
War Production Board, located in taxation,
reductions of
certain
tion, war planes and other articles which have little peace 120
cities; from local offices of the rates of taxation, and establish¬
time value, or in plant and facilities for the manufacture Division of Information, Office ment of exchange of information
of such articles.
In the larger and truer sense we as a for Emergency Management; or between the two countries in the

Representatives of the

States

United

That

the

between the United

Government

the

which has thus been
upon the United States
is hereby formally declared; and
the President is hereby author¬
Bulgaria
thrust

the

directed

and

ized

"Plant

very

people are not saving and cannot save anything at all dur*
ing a "total" war.
Quite the contrary. When the war is

actions

These

has been published by the Divi¬
sion of Information of the War

by writing to the Division of In¬

declaring war

the three governments.

response

plant efficiency 000,000 as a supplemental appro¬
priation for the Department of
Agriculture program of emergen¬
Production Board, and is now cy supplies for United States ter¬
good many available for distribution on re¬ ritories and possessions, and $5,lull (at the quest. The booklet is called 000,000 for the Public Roads Ad¬

least) which must almost inevitably follow feverish
war production activity—not for automobiles or other non¬
essentials but for their bread and butter—but it would be

the Bulgarian

manian. On June 4 the Senate cast

Office of the Coordinator

Inter-American

With¬
House on June 3

resolution, 360 to 0 on the Huri^
garian and 361 to 0 on the Ru¬

In 1943

467,300 for the WPB; $28,638,000

in the past

The formal
been/ voted

unanimously by Congress.
out debate, the
voted 357 to 0

President Roosevelt asked Con¬

for the

Bulgaria; Hun¬

against

war

Declaring that a state of war
exists between the Government

78,000,000 and 66,000,000 gress on June 8 to appropriate
pounds, respectively. This reach¬ $137,000,000 for the War Produc¬
es a total of 500,000
long tons. tion Board and other war agen¬
The company believes that the cies for the 1943 fiscal year.
areas most likely to be produc¬
The President requested $73,tive will be those in which

the

and Rumania.
declarations
had

taling

ganized collection facilities have

gary

FDR Asks $137 Millions

10% each for 1938 and 1937, to¬

sighed oft
resolutions, declarr

Roosevelt

President

friendly consideration.

For War Agencies

six

/terminated / upon

Congress Declares War

America, whose civili¬

to you

the United

months prior notice.

Rumania

identified

and returning your

330,000,000

Minister

Canadian

States^referred to in our issue of
March 19, page 1168.
The treaty goes into effect as
of Jan. 1, 1941, and continues ef¬
fective for a period of three years,

of life.

being /

with the fate of the sister na¬

pounds.

idea appears

who will need funds to carry

ever

good

the

Manage thO propaganda supporting the sale of war bonds
mucHfihclined to decry frugality save in this particular
emergency. 4 One is often led to suspect that they view
the need for thrift much as most of (us regard the numer¬
ous restrictions in war time—often a necessity at present
iare

peace returns.

cipation

zations, culture and ideals are
harvest of the 1940
common to us, her reaction to
surplus should be gathered, the
company feels, since this should /. any unjust aggression must be
and always will be that of the
be too far gone for re-use and
most forthright repudiation and
yet not out of sight too long to
of complete solidarity. In trans¬
preclude its reappearance. This
mitting to you these sentiments
figure is also "fixed at 50% of

to underlie the so-called forced savings pro¬
posals. The same trend of thought comes to the surface
repeatedly in the form of a suggestion that funds be set
aside in wkr bonds now so that they may be available when
the war is over to buy the automobile which can not be
had now, or the washing machine, the radio or the house.
The thoughtful observer will not fail to inquire what would
happen if the larger number of holders of war bonds called
upon the Treasury at the conclusion of hostilities for their
cash.
It requires but little consideration to come to the
conclusion that the Treasury might be very seriously em¬
barrassed in such circumstances.

1,600,000,000
,

however, of supposing,

State,- "and

the

;

Welles,: A^cting:Secretary:^
Lei'ghton McCarthy,

ner

the distresswith which we learn

bring to light rubber scrapped

much

freedom

our

their way

consideration

under

are

leading others to suppose, that thrift will cease to be
a, virtue once the roar of the guns has died away.
It would

Without

grief of the citizens of
which yesterday were
free and today are deprived of
that highest dignity.
The atti¬
tude of the people of my coun¬
try, in the face of the suffer¬
ing of those who have been sub¬
jugated or attacked, cannot be

methods

^ut'lh^t^Q-fie suffered after

50% of this is recoverable.

;

Now, however, the situation
is entirely different and extreme

Post-War Thrift Needed, Too
not fall into the error,

acknowledging * President
Roosevelt's ; Argentine
Indepen¬
dence
Day
greeting,
President
Roberto M. Ortiz on May 28 said

ery.

position few thoughtful men with the good of their country
at heart will be disposed to quarrel.
Upon such doctrines
as these the campaign now under discussion must be built.

—In

the Treasury. * To them thrift is, for the
moment at least, one of the cardinal virtues.
With this

Let

Argentine ^President: 4 > :
/ Deplores Aggression

Contradicting claims that there
"many millions of.tons".of
rubber available, the United I
that Argentina's "reaction to any
States Rubber Co., in a special'
unjust aggression must be and al¬
study/released on; June; 7, esti-|
ways will be
that of the most
mates that approximately 500,000
forthright
repudiation
and
of
long tons of scrap might be re¬
complete solidarity."
covered
by intensive collection
Mr.
Roosevelt's message was
methods.; The United States Rub¬
ber Co. is one of the largest proc¬ given in. these .columns s June 4,
/
essors
of used rubber, and the page. 2134.
The text of President Ortiz's
head of its chemical division, J. P.
message follows:
Coe, is President of the Rubber
I
sincerely
appreciate the
Reclaimers
Association, national
kind
and
friendly
greeting
trade organization of the industry.
: which
Your Excellency forThe survey, conducted by the
; warded to me on the anniver¬
business research department of
sary
which
we
Argentinians
the company, covers the last five
celebrated with feeling and fer¬
years' supply. Normally, it points
vor.
The spiritual satisfaction
out, scrap not collected and re¬
produced in us by the remem¬
claimed in the year is discarded
brance of the events which led
and considered lost beyond recov¬

are

tributions

Thursday, June 11, 1942

CHRONICLE

and

naval

entire

employ
military

forces of the United States and

the

resources

ment

carry

the

Government

the

Govern¬
against
Bulgaria;

war

and, to bring the conflict to a
successful termination, all of
the resources of the country are

hereby pledged by the Congress
of the United States.
The text of the President's mes¬

sage asking for
tions follows: To the

the war declara?

Congress of the United

States of America:

field of income taxation.

The

governments of Bulgaria,

The convention was signed in
formation,- Office for Emergency
Washington on March 4 by SumManagement, in Washington.

Hungary and Rumania have de¬
clared war against the United

production and of making good arrears in peace along, prosper and progress inhabited by a multitude of
and facilities. Failure to take such facts care¬
peoples criss-crossed with blinding hate, with many in¬
fully into account, or a refusal to continue our frugality at dividual peoples indeed divided among themselves into

governments took this action
not upon their own initiative or
in response to the wishes of
their own peoples but as the in¬

over

shall be faced by a problem of "converting" for

States.

peace time
time plant

least in reasonable measure after the war, can
to

/;."
as

scarcely fail

bring financial and economic chaos.
It, moreover, seems to us that we should be able to do
well with this bond selling

with

campaign—and, incidentally,
the current propagandists campaign to stimulate war

production—with less deliberate, not to

say

studious, effort

crude, soul-searing hate, which promises
to be a serious handicap in any post-war reconstruction
and rehabilitation effort.
If this war were to come to an
to

induce

hate,

end tomorrow, or whenever it comes to an end and upon
whatever

terms,

how would

cliques hating one another as the devil hates the righteous?
Can any thoughtful man well doubt that this state of af¬
fairs will present problems fully as difficult as, perhaps much
more
difficult than/ the more material aspects of world
affairs which in any event must be trying enough?
To be
sure, the American people will stick to their lathes and
will buy bonds without this horrible campaign of hate. {
i; - By all meana>let us get ahead with the campaign to
collect the savings of the people for use in winning the war.
It is a task which must be done.
But in doing so, let us

I realize that the three

struments
three

gaged

These

Hitler.

governments are

now en¬

military
activities
the United Na¬
planning an ex¬

directed against
tions

and

are

tension of these

activities.

Therefore, I recommend that
the Congress recognize a state
of

war

the

between

United

how will this world get avoid the pitfalls which await the unwary.

States

and

Bulgaria,

between

the United States and Hungary,

and between the United States
and Rumania.

•

Volume 155

Number 4080

THE COMMERCIAL & FINANCIAL CHRONICLE

Illinois Bankers Call For

Ceilings Onr'<m Officers Named For
Pay, Farm Prices; flsk Equitable Tax Syslem

Asserting that "critical times such

these-call for'drastic

that

"as

natural

bankers

-we

share-the

Jones

the

of all thoughtful

-plant

American citizens who-sense1 the

army

concern

workers

inflationary

Those

* trends

our; eco¬

structure," adding "we apr
prbve/£he/)measure$/; that; havei
been taken as wisely precaution¬

with -the
trained
the

wealth'and

elements

expended themv'

the

products

and

that

Frank

Federal

Will be Executive^ Vice-President;
A.. %

tBqbson, / Secretary; H.

which
?

;

Philosophies; arid facts- involved

Hamilton, ^r., General Counsel.
directors will be Messrs. Jones,

and

strength

are

character

and

and is

peace,

nancial

our

and

Viceof the

Secretary

the

taxes

1928

high.

official mission

Red

official
and

Per

representatives

the

are

Victoryfund Group

Corporation/ wasi
given in these columns April 16,
page

nounces

the

addition

the

Federal

$5.93

1939

four

fol¬

income

has

resulted

Fol-

for' the

taxes

com¬

and

half

times

that

ForSynlhelicRubber

amount

set

aside

income tax
"

for

reserves

Federal

25.2%
and

44.7 %

was

income

' taxable

in>1940; 15.8%
12.0% in 1928.

1941;

1936,

the 1936 record year.

58%

Dividends
available

income in

1941, against 57% in
1940; 86% in 1937; 72%; in: 1936,

and only 46% in 1928. The

com¬

panies added $15,000,000 to sur¬
plus in 1941 and they closed the
fiscal year with an earned sur¬

of almost 50%

George R. Boyles, President such material to be admitted free
*
Merchants National Bank; of duty.
\ .*|

the

\* J, :• -

coming,year.

7.l7

■

In his Presidential address, Mr.
•Adams^ called "for;the •' estabhsh4"
merit of a 48-hour'Work week- in
war

industries.

tration hand

- compulsory,
arbi¬
rigid t governmental

■economy;: He also-urged that the

government

enforce

law

for the

.and

that* the status

-a

duration of

nd-strike
the war

quo: in

relations be maintained?'

labor
b®

increased

use

well./;:;,

1941

2.98

were

have

ceivables

times

current

been

the

current

which, how¬
ever, have risen at a slower rate
than

assets,

liabilities.

current

value

inventories

The

was

30%

capacity esti¬

greater than at the close of the

540,000,000 gallons will be
Prior to the7 issuance of : this S added a • stockpile surplus of 50,order, only the Secretary of the 000,000 gallons from 1942.
Navy had authority to make such :> According to a statement issued
purchases., The extension of the: by A. I.
Henderson, WPB Direc¬
power
was
in accordance with; tor of Materials,- the total is ex¬
Title I ,df the JTjtrsL War. Ppwersj pected to be .reached as* follows:
Act,, approved pec.18,1941,
65.000,000
gallons synthetically;

preceding fiscal year and prac¬
tically equaled the record for
the year 1929.
Receivables in¬

1*20,000,000

gallons
by whi^cey
capable;, of producing 190

creased

14%

above the

"lifo"

The

and

were

1929 peak.
method

10%

inven¬

was used by 14
companies last year. Net

income

for

after .taxes

it ' takes to whr with less -concern? -the diplomatic

Commerce-at

enton hand.
t

legislation

connect the Atlantic arid Gulf iri-

'r -;;/

WfciHvddbio'h'i

Associated

from

Press

accounts

Washington June

was

stated that while the Way was left

for
later
consideration,
Joseph J, , Mansfield
(Democrat of Texas) of the Rivers

open;

Chairman

and

Harbors

Committee who

had

dead,"

Mansfield

told

reporters after the House had re¬
fused "to pass the:measure.
The
press accounts added:

Speaker

Rayburn,

who had
speak for the
bill, said he did not know whfen*
lf: ever, the measure would be
brought up again ; under pro-.
;:
cediire allowing., longer debate
taken the floor to

and

amendments.

Today's procedure permitted
no amendments, and it was be¬
of

this

that

most

the

expressed opposition developed.
Many of the. opponents said they
desired to knock out the canal

provision as
approved of

but
Some

unnecessary,
a

pipeline.

of them called the bill

a camou¬

flaged Florida ship canal project.
"There is

reason

alone,"

one

for either

Representative

Mansfield contended. "The pipe¬
line alone cannot furnish all the

oil the East needs.

To do that

must have the canal, and
bill without the canal is

we;

the

impractical."
was

claimed by some Repre¬

sentatives that the Administration

these

had

sufficient

need

for

authority

further

legislation,
companies would have increased except with respect to the barge
26% instead of the reported 8% canal.
/

eased

VwuiVTJ/ 3.1'' I

The proposed

build pipelines and that there was

Uot;

pro¬

two-thirds

now

rising public debt/since ing?-the, parades were military^ if .total conversion- of- the indus""the: United States and its Allies naval and-aiF vattaches-of 4he 26 J try -is effected,-since; it is stated
earv put- into the present war what United r -N at ions. -and. members ^rof >ihat -sufficierrt stecks are at presfear the

rules,

of the

->*?;v

under

measure

tory valuation

plants
proof alcohol;- 120,000,000 gallons
;j President • Roosevelt? on May 30 i by whiskey plants being converted ■f if the lower-of-cost-or-market
reviewed, the M e m o rial,)Day; to -produce .190- proof;- 65,000,000
method had been. used in both
parade in* 'Washington,- - partici- > gallons^ bycommerciak "alcohol /. years.:
/ • //v/A
pated in by the various branches t plants in New Orleans; 100,000;000:
of the-service:? The President was; gallons by seaboard-alcohol plants,

corps.^;3V',^f^

estimated cost

requiring

| vote.

Coffee Surplus In; Haiti ;
and :J0J100,000 gallons from" Cuba t
Chester-Davis,' President "of- the accompanied by Gen. George G.:
The problem arising from the
(Federal > Reserved/Bank ■* Of -St. Marshall;-: Chief of; Staff of the; apd Mexico? >
' ■? '
stated that: therei is? not coffee surplus in Haiti which has
Louis,:-told thfe convention, accord- Army,« and: - Admiral- * Ernest
•ing trr the St.* Louis/Globe Demo¬ King, Commander in: Chief of tlie expected ^to^ be- any^ shortage of been causing ;considerable -con¬
Also-view- whiskey -and nother-.-liquors, even cern. in r the Republic:/has* been
crat,
ihat-there- is na reason- to United.; States -Fleet;
i

cedure

cause

prin¬
cipal factor in the upward trend

of wheat

mate of

FDR;fowwf ^rade^ r i

Florida at

$144,000,000. By a vote of 121
noes
to 85f) in favor of the bill's
passage the House rejected an at¬

that for the

liabilities, the lowest rate since
1928.
High inventories and re¬

-"s

Tol the production

over

Current assets at the close of

;

barge
pipeline

petroleum

close of the 1937 fiscal year.

with

and

across

plus of $143,000,000, an increase

Jmpi Buying

Crystal
for

construc¬

represented

Earl C. Adams, President of the Corporation to make emergency
'Jersey State Bank at Jerseyville, purchases of war materials abroad,

canal

operation

equaled those for 1937,
although they were 17% below

Treasurer

and

almost

named

tion

June 1 refused to

authorizing

urged the measure's passage said
Dividends paid by /the 25 he
did not intend to press it fur¬
companies to their: stockholders
ther.
"As. "far* as I am concerned,
increased 7% during -1941 and
the bill is

-..

was

re-

_ported jrn 1936 .and 1928.,,The

of. the Home State Bank of

bill

pass

Lake,

For Florida Defeated
The House

tercoastal waterways ~ and for a
panies amounted to $30,400,000
in 1941, almost three times the pipeline from the vicinity of Port
St. Joe, Fla., to
1940 aggregate and more than
JacksonvillerFla.

was elected Vice-Presi¬
dent and Harold J. Bacbn» Cashier

Pipeline, Barge Canal

lowing the rapid decline from had been approved by the House
1929 to 1932, net income as a : Rivers and Harbors Committee on
percentage
of sales
m o v e d I May 22, but the committee vote,
sharply upward, reaching $3.85 it is reported, was not approved.
in 1936.
Designed to relieve the gasoline
Rising costs adversely
affected
net
income
in
1937, shortages in the East, the bill
however, and profits declined in would have provided for the con¬
spite of the higher sales level. struction of a barge canal across
Federal income and excess- the northern part of Florida to
profits

1546.

/ Blahs for
Go., Lexington; Ky.; J. C. Mc-: liquor production ? by the end of
the current- year* to, permit the
Wholehearted cooperation was
//Gonnell President, the Napledged by the bankers "in inak-:
'tiphaLBankyOf^ West; /Virginia Nation's stills "ta be, availed of to
ing loans .to war-; production
at Wheeliiitl F.:; P:; Muliins, - of turn out: alcobpr fcfr use in : the:
dustries, in restricting loans that
; A; E*.f Masten?
fco/^ Pitf sbui^gli.' manufacture: of synthetic rubber
and dthh^ War products, yvere in¬
might conflict with the war effort,
Mthe; : other. 22; dicated
and in assisting the various super¬ /Apppmtm^
by a WPB spokesman, on
visory authorities, both State and ipembers;^pi ./the/riimmiftee /
May 27, according to Associated
referred to. in. .these ; columns; of
Press accounts from Washington
national, to keep the- banking
May. 28,: page; 2032; Hugh; D.
system of Illinois and the Nation
of Mellon
Securities prr that day, whibh added:
in the soundest possible condition MacBain,
\ ,; There is expected to be no
Corp. of Pittsburgh, - has been
during the war and thereafter,'.'
shortage ;pf >; whiskey and other
made Executive Manager of the
.and
liquors, however;because ample
States Treasury to spread the base group/ whose function it is. to aid
the Treasury's war financing pro¬ V stocks; are .on hand.r;
.j
of Government borrowing through
; AV -C; Conby;;; ViceidPre£i-\
' A" goal of 540,b00,000 gallons
sale of U. S. War Bonds" were en¬ gram,
dent of the National City: Bank
j of alcohol has been set for 1943,
dorsed by the bankers. The bankr
of Cleveland, will be Secretary;
with 240,000,000 gallons to come
:ers put themselves on record as
of the committee.
from distilleries now producing
planning to "continue our opposi¬
beverages.
Of the -total, 200,tion to branch banking and to any
.'- 000,000
gallons derived from
legislation that might provide an
Y grain is to be allocated to the
Expands; War
opening; wedge to branch bank¬
production of butadiene for synPresident
Roosevelt,; in ', an
ing."
;
thetic;rubber. The Whole proHenry C. Bengel, Vice-President executive order issued on May*30,
of the Illinois National Bank of authorized the Secretaries of War, ;; ;gram is expected to consume
136,000,000
bushels
of
grain,
Springfield, was elected President Navy, Treasury and Agriculture
with the emphasis on corn, but
of the Association.
He succeeds and the Reconstruction Finance

Chicago,

the

$100 in sales,

improvement in the ratio.

Cross.

of. the

enable exporters to carry
surplus of this size..
A®/

may

times

exceeded

averaged

since

War JBariiage1'

reconvert its resources to peace-: lowing to the Victory Fund group:
time production on the successful
W.
H.
Courtney, President,
conclusion- of the, cur rent war ef-'
First National Bank- & Trust

111.

net

prevailing price
coffee, combined with the
possibility of Government aid;

ported for 1939. In other words, tempt to pass the
the/24% increase in net sales suspension of the

fort;':,;..:

the

and

The excellent

levies,

in 1941,
as compared with
$4.74 in 1940.
After taxes, however the rate
declined
from
$3.54 to $3.16
which almost equaled that re-

enable

below

before

taxes

expected to have
application blanks around June 20.
The text of the act creating the

the

reserves

25%

profits

Virtually all
agents of private fire insurance
companies havp- been designated

Congress the
M. J. Fleming, President of the
taxing system to Federal Reserve Bank of Cleve¬
the future of American industry,
land and Chairman of the Victory
.to. the. end that industry, may be Fund Committee for the Fourth
permitted to set up sufficient; fi¬ Federal \
/ Reserve;. District, - an¬
relation

temporary leave

now

WDC

the

ican

democratic system." They further
commended "to the serious con¬

sideration

tax

about three

than in 1936.

to Dublin in behalf of the Amer¬

the

during

sales

for

figure by only 2%, al¬
though sales were 24% higher

Home Insurance Co. of New York

govern such increases in war and
in

President

neces¬

maintain

both

133,000 and 183,000 bags
pounds each.

132

'1936

len is

paid workers' right to wage in¬
creases, the factors which should

the closed shop, union
system of taxation that will pre¬ security, and the new WLB for¬
serve rather than destroy the in¬
mula of "maintenance of member¬
dividual enterprise that has made
ship.'?
America the greatest democracy
we

movement
for

urged upon Congress "the
importance of a fair and equitable

income

were

NetJ after

earth and that will be

buying
records

new

tho§e for 1940, reduced net after
taxes to a point where it was
only 5% higher than in 1940

Mulligan,- Treasurer,- and Claude

included,

ers

sary

5, further said:

Christiansen

every

a substantial part of the war ef¬
fort through taxation," the bank¬

resulted

tween

goes into the manufacture of war

'consumer

heavy

1941

taxable

that land JSteelCoi; After describing Frederic A. Delano and George E.
Allen. ,"-Y
;
the steel industry's conversion to
Most oi- those appointed are of-,
and consumer goods if these meas¬ war in 1939 and of its
present allfibers of the RFC or; the Com¬
ures are to achieve the .results out ♦ war
efforts,; Mr Randall re¬
they seek to accomplish."
While viewed the issues which are -in¬ merce.. Department. M?. Delano is
recognizing the obligation of cit¬ volved in current cases before the Chairman of the National Re¬
izens and institutions "to finance War Labor Board, such as highly sources .Planning. Board. Mr. Al¬
cultural

-.explained';to r the Clayton, Mulligan, and C. B. Hen¬
bankers by - Clarence B. Randall derson, Sam Husbands, Charles. T.
elementjof cost, - wages- and agri¬ of
Chicago, Vice-President of In¬ Fisher, Jr., Howard J. Klossner,
placed

unusually

half

announced that

ceiling

latter

re¬
preciation were 23% higher than
attack)., Mr. Jones the 1928 high.
W. L. Clay¬
The Board's announcement, is¬
ton will be President of the WDC,
sued June

ary, but affirm it to be our solemn) in the current national labor sit¬
conviction that there must be a; uation
were

definite

The

that

enemy

also

real

Jesse

sisting

skilled
of

June

forces of the United States in

shall not ' have

Chairman

in the world's history.

are

income of department stores, according to the Conference
Board, New York City. A Conference Board analysis of the corporate
income statements of 25 leading department stores shows net
sales
construction Finance Corporation, at
$1,147,000,000 .for the fiscal year, 1941, an increase of 17% over
which, beginning July 1, will pro¬ the preceding year and 5% abovfc<^
—
—
vide, through insurance, reinsur¬ the previous peak established in *n a release made available June
ance or otherwise, reasonable pro¬
1929.
The 17% increase in sales 2, added:
tection against loss of or damage resulted in a 47%
Downward
revision of crop
gain in net tax¬
to - property, , real
estimates and an increase in the
and personal, able income.
Profits before al¬
which may result from enemy at¬ lowance for Federal income
Haitian quota on the American
and
tack (including any action taken
market have reduced the; esti¬
excess-profits taxes and contin¬
mates of expected surplus to be¬
by. the; .military,, naval, or air gency reserves for inventory de¬

greatest

and

announced

would

Department Store Sales At Record In 1941
Although Taxes Cut Earnings, Board Finds

$1,000,000,000 War Damage Cor¬
poration, a subsidiary of the Re¬

producing

greatest

and

vital heed- for: regulation to curb
nomic

with

Secretary; of : Commerce

cur¬

tailment of riDn-defense expenditures in governmental and civilian
affairs," the Illinois Bankers' Association in its Declaration of Policy
adopted on May 22 at its annual convention in St. Louis, Mo., urged
"our public officials to exert their influence to reduce unnecessary
governmental operating budgets and to drastically, curtail grants of
State and Federal funds to projects^
that do not facilitate war effort or [over the financing than can any
production, to the end that the opposing nation." He added:
"On the day the guns
pressure on the Government for
fall
non-essential grants of aid ' may i
silent and we stand victorious,"
he declared; "we will emerge,
give way to patriotic insistence
that all revenue available be em¬
despite what we have put into
the war," with our soil and our
ployed in legitimate war activi¬
ties."^ The Declaration also stated
war materials unimpaired,
and

2213

somewhat

but

complete
solution has not been found, ac-^

cording

to!

the

Department

US Mission To Colombia
Under
ment

Mav

the

terms

agree-.:

signed in Washington- on /
by Secretary of State

29,

Hull and Dr. Gabriel Turbav, Co¬
lombian
States

Ambassador,-

United

military mission, similar; to

those sent .to other Latin-AmerM
can

governments, will go to Co*

lombia

advise

the develop¬

ment of their armed forces.

Washington, which agreement will

blriCT

run

;

The

for four years.

r':/i

MM.

/
-

THE COMMERCIAL & FINANCIAL CHRONICLE

2214

Thursday,;JuneVll; 1942

and

First Quarter

Corporate Earnings Down
Despite Gains Before

financed

r
The

gain in the income of American in¬

substantial year-to-year

In Mid-April, Labor Dept. Reports

from mid-March to mid-April raised the April aggregate to

taxes, according to regular quarterly computations

000, Secretary of Labor Frances Perkins reported on May 29. "This
total exceeded all previous April .levels and was 2,545,000 greater
than in April of last year," she said.;\;v>'^ ;
>

corporations before Federal income taxes and contingency
reserves during the first quarter was converted by greatly increased
Federal income taxes into an almost equally large decline in net after

Analysis

Board

the

25% be¬
corresponding 1941 quar¬
while earnings before taxes

ter,

showed

Islands, visiting the House of Rep¬
resentatives
at -Washington
on

comparison with figures for 1940
is even more striking in some re¬

June 2,

before Federal
income taxes and contingency re¬
serves rose 114% during the two-

will wholeheartedly back up .Pres¬
ident Roosevelt's pledge that the
freedom of the

Philippines will be
redeemed
and
its
independence
established and protected.
Presi¬
dent Quezon also
declared that

period, while net after taxes
declined 14%.
1
'
year

Out of each dollar earned be¬

income

Federal

and

taxes

sened

contingency reserves, these cor¬
porations

the

served

63.2

income

taxes,

States."

average re¬
for Federal

cents

companies to 79.6 cents for a
group of 3 aircraft and parts
correspond¬
was

for

1940?

cents.

000

compared with $283,419,-

000

and

1941

$87,653,000 in

1940.

Automobile

m a

nufacturers

the only industrial group

were

failed to

which

income

show

gain in

Federal

before

income

taxes and

continegncy reserves;
only six of the 19 groups failed
show

decline

Aircraft

after

net

and

parts,

and

miscellaneous

durable

goods

non¬

manufacturers

showed

gains, while the auto¬
mobile, automobile parts, build¬
ing materials, electrical prod¬
ucts, machinery, metal products,
steel and miscellaneous durable

goods manufacturers, as well as

declines,

substantial,

most of them
compared with

last* year.

larger tabulation embrac¬
ing 415 industrial, 31 electricity

income

after

from

taxes

$627,798,000 in the first quarter
of 1941 to $546,786,000 this year.
The figure for the first quarter

1940

and roads.

of factory em¬
ployment stood at 135.7% (192325=100)
a
rise of 10.7%1 since
April of last year, and the cor¬
responding
pay-roll index
was

18614%, an increase of 38.4% since
last year.
As has been indicated
in

preceding reports, factory pay¬

rolls

have

much

advanced

sharply than employment in
cent

months

mainly

: of

due

re¬

increased

"Non-*war
than

construction

housing,
in

creases

other

slight in-*

showed

employment

and

pay¬

rolls during the month of AprilV
but aggregated only 124,000 em¬

ployees and $19,154,000 pay rolls/
less than 10%?; of the total con¬
struction requirements.
*
"Public

housing
employment
steadily since July,

declined

has

working hours in

overtime

creases-between

Secretary
,

Perkins

ported:

further;

March

and

A-piriF 15,? 1942; were reported by

housing areas, has been expand-;
ing gradually since the inception

590^;manufacturingestabiishrnehts of the
out of

reporting sample of about

in October, 1941; ]; \

program

"Employment in the executive

They averaged 8.1% and
branch
affected about 110,000 workers out
30,000.

re¬

many

premiums,

Federal

the

Govern¬

his

address

before

^he1

was pre¬

„

10 telephone and tele¬
graph, and 59 railroad com¬
panies showed a 13% decline in
gas,

net

group

on the con¬
cantonments,
ord¬
nance
plants, air corps stations;
new
ships, airports, and streets

struction

and

the
>

concentrated

chemicals, drugs, food products,
products, and a miscel¬
laneous group of companies re¬
paper

ported

;

construction, not includ¬

fice

tiles

{

decline

net

of¬
equipment, railroad equip¬
ment, petroleum products, tex¬
taxes.

MacArthur

General

Fed¬

"War

ment exceeded the 2,000,000. mark
v
"Approximately one-half of the .Of:a-total*-of 6,000,000 employed
during, the month of April, with
gain of more than 2,500,000 >non- fethe covered plants.
the additionof 10,300 per^ns-init 'P.
sented to the members individu¬
agricultural workers over the. year +> "Employment
in
anthracite side"the. District of Columbia ah<^> ;V
ally
by
Representative
Bloom, occurred in
manufacturing indus¬ mining declined .1.1% and bitu¬
9?,800 outside the • District.-: Both?
Chairman of the House Foreign
tries.
.With but one exception minous coal mining employment
employment "and pay Foils • in¬
Affairs Committee.
(wholesale and retail trade), alii fell-0,5%;
-Metal mining as a creased; 6 % during the . current
President Quezon later in the
other major groups showed em¬ Whole shoWed an employment in¬
month; but over the past year em-K ; >
week
(June
4) ' addressed
the
ployment gains over April of last, crease of 0.7% and employment in
ployment?increased; 63 % and payr >
United
States
Senate, at which
year.
Substantial declines in .the quarryihg 'ahd non-metallic min¬ rolls. 73 % .*
The April pay , rolls
time he expressed the hope that
wholesale and retail automotive ing: {showed a less-than-seasonal
for
the executive i service
were
;
the American people would adopt
and
the
retail furniture: groups increase' off5.7%.'
In crude pe¬
$327,119,000...
\
■
.
another slogan of war, viz: "Re¬
>•) contributed to the decline ofT34£ troleum production employment
"The expansions of war,* Indus- v
member the Phili^in6s;^^?,}ii$l
000 in trade employment over the declined by 1%.
tries *has.% been; accompanied. by+ -•
remarks to the Senate, he said:
year.
All major retail groups re¬ :%
"Employment by street railways drastic contraction of work-relief
I am not in this country, to
ported* fewer employees than in. and buses, again showed an in¬
projects. . During April, WPA per¬
persuade you to send forces: at;
April, 1941, with the exception of crease of about 1 %, reflecting the sonnel declined 96,800 persons,
once to the Philippines to drive
the group of retail food stores.
demand for additional transporta¬ and during the past year 755,000;
the invader out of my beloved
This year pre-Easter shopping oc¬
tion facilities; Increases of a sea¬ These
represented decreases of
fatherland.
Nor will I try to
curred too early in April to affect
sonal character were reported by 10% and 47%, respectively.
The
convince you that the Pacific is
employment in retail stores in the
hotels, laundries, private building contraction has affected personnel
more
important than the Eu¬
pay - period ^ending
nearest i the contractors/and dyeing and clean¬ on war'
projects of the' WPA
ropean or the Atlantic theaters
15th, while last year, Easter buy-; ing
establishments.
Brokerage somewhat less than on others—4%
of war.
Those decisions are to
ing was concentrated in the mid¬ firms reported fewer employees.
during the past month and 33%
be made by you.
dle week of the month and ac¬
"Retail establishments reported during the past year.
The Associated Press further counted largely for a substantial
"The NYA dropped 10,100 per¬
a .net
contraseasonal decline of
quoted him as follows:
•
V employment gain.
0.5% Jn the, number of workers sons from itsstudent-work pro¬
But he added:
"You will jal"The increase of 0.5% in factory
due primarily to reductions in the gram and 15,300 persons from its
ways have in mind, I am sure,
employment between March and automotive and furniture groups, out-of-sehool work program dur¬
that only in the Philippines has,
April was about twice as large as
Over, the past year
reflecting the effect of the war ing April;
your flag been hauled down and, the
normally expected expansion,
NYA
personnel has contracted >
program on the sales of automo¬
replaced by the flag of the Ris¬ while the
corresponding Increase
over 50%.
biles, tires, gasoline, and electrical
ing Sun."
in
weekly
pay
rolls,
1.9%
or
"Personnel on the CCC program
appliances and radios. Wholesale
Mr. Quezon declared that; in
nearly $6,600,000, was in contrast firms
reported a larger-than-sea- likewise dropped sharply during
view of this tragic event he,
to a typical decrease of 0.8% ($2,sonal employment decline of 1.6%, April with the declines distributed
hoped the "American people; in'
800,000) for this month. The dur¬ due
partially to reduced employ¬ among the different groups as fol¬
this hour of their great respon¬
able goods group showed a gaim
ment in the automotive and elec¬ lows: enrollees. 18,000 persons or
sibility to the world would al-; of 1.3%
(72,700) in employment,- trical groups.
18%; nurses, 8 or >16%; > educa* V:':*ways
keep before them
the while * the
non-durable ; goods
12%;
>' "Federally - financed
construc¬ tionai advisers, *93 or
memory
of the devotion and
group
reported a reduction ^ of tion showed a more-than-seasonal supervisory and technical, 1,080 or
sacrifices of the people of the
0.4% (21,300).
Over the past year total CCC
expansion during the month end¬ 6%
Philippines."
"Many industries continued ; to ing April 15, adding 177,000 work¬ personnel has declined 64% and
Before the surrender of Cor-;
show employment declines as-a. ers "and
v
y-'-f
$35,649,000 pay rolls. total'pay rolls 59%."
regidor, the Philippine President result of
The
Labor
Department's an¬
shortages of materials These represented
increases
of
journeyed to Australia.
His ar¬ and
lay-offs pending plant con¬ 15%T and 18%, respectively, over nouncement also had the' foil owrival in the United States to set
version to. war production. Among the preceding
'
'p
month, and 63% ing to report::1
up
headquarters in Washington such
durable
goods
industries
was
noted in our May 14 issue,
ESTIMATES OF TOTAL, NON-AGRICULTURAL EMPLOYMENT
were
automobiles,
hardware,;
[In thousands]
page 1861.
' >..{ plumbers' supplies, stamped and
Change
Change.
'
K'-'-'
'
•'
Mar.' '
enameled ware, tin cans, .business
Apr., 1941
April. 1942

After,

amounted to $546,580,-

reserves

"insistent

House, President Quezon

Total Federal income tax

was

that

House

the

is overtaken.

ernment

21.7

that

the

upon

not been conquered until its Gov¬

270 com¬
42.4 cents,

while

told

Corregidor, tions affecting the sales of auto¬
acting upon the theory that, under mobiles, tires, electrical appliances
"
international law, a country has and other commodities." "

manufacturers. The

the

United

the

that he left Manila for

from 38.1 cents for 12 petroleum

ing figure; for
panies in 1941

faith

only

was

demand"

being

the range

our

employed

industries, 1941^ showing a net decrease of
42%. since April a year ago, from %
and wage72,900 to 42,600 persons.
On th0
rate increases,
other hand, the war public works
"Fewer factory workers were
program including the construe?
cated a net contraseasonal decline affected
by wage-rate increases in tion of
schools, hospitals, water¬
of
53,000
over
the 'preceding April than in any month since
month, due in part to the direct March of last year. Wage-rate in¬ works; and sanitary land recrea¬
tionalfacilities
servicing
war?
and indirect government; restric¬

ported in coal mining and crude
petroleum production.
The com¬
"death, ruin and destruction have bined reports from wholesale and
never
daunted our spirit or les¬ retail .trade establishments indi¬

The Board further says:

fore

expressed confidence that
and Congress

the American people

Earnings

spects.

construction

ing housing, required 88% of the
employment and 89% of the pay¬
rolls. Expansion during April was

"The April index

major groups reporting
gains were manufacturing; trans¬
portation and public utilities, fi¬
nance service, and miscellaneous,
and Federal, State, and local gov¬
ernment services. Employment in
the
mining ; group
showed > no
change from the March
level,
gains in quarrying and metal min¬
ing offsetting the decreases re¬

President of the
Commonwealth of the Philippine

The

increase of 29%.

whole.

Secretary

"Other

Manuel Quezon,

low the

according to
Perkins, who also said:
interval,

Voices Faith In Future

after taxes in the first three

months of this year was

largely

40,773,-

projects, accounted for 137,-<&

000 of the increase over the month

Quezon In Washington

corporations reveals that net in¬
come

"Increased employment on contract construction,
eral

in-«

industrial

statements of 270

come

of the Conference

respectively,.over,- the

1,372,000; persons', and> paid {out'a
total of $234,328,000 in pay rolls.
'

gain of 381,000 in total civil non-agricultural employment

dustrial

Board.

93 % ,>

past year;* In April, alt Federally-*:

$507,012,000.
The
to show increases

was

only

groups

over

the

1941

tail

trade

32%

and

quarter

with

were

re¬

advance,, of

railroads

with

rise

of 52%.

Net
of

sales

group

companies, for which
data are available, showed an
increase in net sales, as com¬
pared with both 1941 and 1940.
automobile

included
a

loss

this

net

sales

The

other

bracing

against $1,175,960,000 last
and

yCari

$906,294,000 in 1940.

groups,

showed

gain

net

the

CORPORATE

em¬

eight

figures

companies;
with

percentage

1940 and

changes

from

194li

■

Percentage Change

1..I,.—-,

Industrials,

>415

Manufacturing

Metal

—11

404.075

353.550

—23

—1-2.

180.771

234.517

208.275

-—J 2

—13

198.856

139,558

145.275

25.297

28.797

23.330

2.822

2.938

1,609

and

22.475

25.859

6.727

5.078

4.611

5.899

Utilities

112.908

126.318

21.721

—

—12
—

—13

and

gas

telegraph__

total

_—

d Deficit.

—11
+

+ 75
+

5.919

+ 32

4.671

—22

—

130.538

—11

—14

—19

—26

•

49.138

60.519

63 770

65.799

64.162

Electricity

Telephone

Grand

1942

309.627

trade

Kailroads

•

—22

1940. to

135

_____

Miscellaneous

1942

goods

Coal

Public

387.470

1941 to

337

Mining

Retail

443.849

1940

202

goods

Nondurable

346.262

1941

Durable

Net Income After Taxes

1942

87,616

57,631

dl0.996

546,783

627,798

507,012

—13

+ 52

515

+ 14

66.376

—

all

manufacturing

;

„

v
-

lnary;

durable

+381

■

1,738

6,658
4,264%

4,832

"Total

civil

1,213

•:

100

134
"

4,195 -%:%+•:; 69

4,174

3,983

749*
■y-

for each of seven

major industry

given

proprietors and firm members,
self
employed
persons,
casual

goods

workers

service.

in domestic
The estimates for "Em-

and persons

ployees in non-agricultural estab
lishments" are shown separately

preliminary 1939 Census data.
The figures represent the. num¬
ber:, of persons iworking at any
time
during
the week ending
.

nearest the middle of each month.

The

totals

have been
the

ber

for

shown

of >

ployed for

States

the

Occupations

1930

the
non-agricultural "gain¬

workers"
shown

United

the

adjusted to conform to

figures

Census

number of

ful

231

6,792

agricultural
employment," groups. Data for the manufactur¬
on the first line of the above ing and trade groups have been
revised to include adjustments to
table, represent the total number

non

non-durable ..."

;

295

3,113/

+
—

2,545

> 1,775

4,623 >%::+i09.

11,684

+137

6,711

Finance, service and miscellaneous

Federal; State and local government-..

estimates

32,085

:.+ 2,545

564

3.277

The

-•

860

Apr.j 194?}

38,228

12,845 •;■•>+>52.
.

to +-1

V*-

.1941

38t

40,392

.3,344

Trade————,

/*• Apr..

Apr,, 1942

34,249

—_——

indus¬

industries,
however, notably cottonseed oil,
cake and meal, millinery, carpets
and rugs, rubber goods, fertilizers,
fur-felt hats, and hosiery more
than offset these gains to cause
-

1942

12,897

of
persons
engaged in gainful
beverage, canning, ice cream, beet work in the United States in nonsugar, and butter industries and agricultural industries, excluding
smaller gains for cane sugar re¬ military and naval personnel, per¬
fining
and
knitted
outerwear. sons employed on WPA or NYA
Contraseasonal gains were shown projects, and enrollees
in CCC
in
the
cotton
goods, silk and camps.
The series described as
"Employees in non - agricultural
rayon, and woolen; and worsted
goods industries. Declines in other establishments": excludes also
non

Mar., >..» to

(Prelim-;

employment-40,773
34,630

Manufacturing—-

Transportation, and public,utilities—

goods
group,
substantial seasonal in¬
creases-were
reported ; for the
v

•'Mining.__: 860
■; Contract construction
1,875

tries combined.
the

Employees in non-agricul. establish.——

and machine tools offset these
declines sufficiently to cause a net
and

•

.Total clvll,non-agrlculturftl

ery,

"In

Thousands of Dollars

companies

together; gain in the durable goods/group

groups,,

EARNINGS. FIRST QUARTERS 1940-1942

Number of

••

following table supplied by; craft, > foundries
and
machineConference Board shows the shops, engines, electrical machin¬

substantial

sales,

machines, jewelry, and silverware
and plated ware. Sharp increases,
however, in such important war
industries
as
shipbuilding, " air¬

The

$969,-

groups,

companies

year,,

year

year.

•

showed

from

being $1,585,999,000 this

manufacturers
group

in the first quarter of the
.to $708,746,000 this net income after taxes
of the 515

816,000
last

smaller

101

Five

less

to
one

than the

have

been

week

the time of the Census.

num¬
unem?

more
,

{

at
V

Volume 155

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4080

Draft of Semi-Skilied Labor Seen

Imminent;/If

:-a and. compulsory allowances and

yallotments for dependents, there
is no question that tens of thou•

Employment ®f Women & Men Over 45 Urged

/ sands

o£

these

and OPA with anti-trust law
enforcement are described in a
succeeding article by Fowler
Hamilton, Chief of the Anti¬

;

able-

young,

bodied, unmarried

will be

men

2215

Division's

trust

National

De¬

Declaring that "the armed forces must, have the cream of the
able-bodied young men," Col. Arthur V. McDermott, in addressing the

/ reclassified in I-A and inducted
into service.
Their compulsory
allotment of pay, supplemented
/ by the governmental
grant will

monthly luncheon meeting of the New York State Chamber of Com¬
merce on June 4 stated that "it rests with
industry to devise ways
and means whereby substitutes may be found for those able-bodied
young men without dependents, now engaged in their plants."
Col.
McDermott, who is Director of®Selective

Service

for

York

New

effort,

far

titled to

observation

dustry

"is

still

claiming

ments

for

these

semi-skilled,

tens

in¬
defer¬

goes,

thousands

automatically

he is

able-bodied

nouncements

ing

tional

and

tive

years

cause

difficulty in passing

occupational

deferments

/'lies in the fact that during the

ago,

an¬

made by Na¬

were

industry

war

f ? fronts

"necessary /men"7 in
these fields of endeavor might
V be Considered: for deferment.&> This > was misconstrued by /a

preceding Pearl Har¬

year or more

bor, the .war production:, plants
throughout the country employed
hundreds of thousands, and per¬
haps
millions,
of
able-bodied
young

men

with

for

grounds

;

'
'

Most

those'

able-bodied

young men are still working in
the plants today, v. Many of them
-

•

is
•

and J. S. Earl v. economist.

Production, mi usiiefs
Here From Britain

McDermott

"industry is
these

observed

mmrnrnf.vwmm

Duke

Lyttelton, British Min¬
Production, arrived in
Washington on June 2 for confer¬
ences

with Donald M.

Symposium

the

trations

also

the

symposium

trants

the

and

advance

which

has

in' the

articles

ten

Price

just

Control

been

Duke

to
on

pub¬

University

Law School quarterly,

seems

-v

American

average

vinced that the restraints

National Head¬

essary

and fair, he

can

con¬

Mr.

the

nec¬

are

be counted

skill

whose
of

based

Out

years

and
experience.
unquestionably / an
/acute shortage of men of that
type in industry, and they will
be permitted to remain despite
the fact that they are young
and

Following

his

of % young

able-bodied

House,

■

to industry to start
them without delay
with men with dependents, with
men who have minor physical

,.j

-intelligent /who: are /now
tramping the streets looking for

jobs^;-

subject of occupa¬
deferments, said Col. Mc¬
Dermott, "let me attempt to clear
up what appears to be a popular
misconception."- He went on to
tional

say:.

„

•

one

the

of the

British

said

that

June

the

article

the

version

try to

economist

the

automobile

•'

production.

;
'

A great many

people seem to
impression that if a
man
is engaged in a war pro¬
duction industry or in an indus¬
have

the

—

procedure.

deliveerd

Washington today to consult with
"representatives of United States

The per unit cost

services."

fighting
who

cousin

Mountbatten,
King George

/ Washington

19.4 cents in March,

Leading
commodity
groups
delivered, with cumulative values
up to May
1, 1942, were:
/ dairy products and eggs, $207,-

and fowl,
vegetables
nuts, $53,065,885; lards, fats
oils, $52,812,050/ and grain
cereal products, $26,911,814.

491,152; meat, fish
$193,015,600; fruits,
and

and

;

totaled

// ton,

corn, gum

-Lease
•

and

British

American
'

officials

'Gas' Not To Be Penalized

that

are

rect

bearing

tegy

to save both your gasoline and
Angloyour tires. Try to cut your pres¬
problems
ent mileage at least 50%.

production

expected to have

the

di¬

the grand stra¬

war

against

the

A cross-section of

the

reviewing

stands

far

out¬

f. hearing affected private inter- tween 60th and 79th Streets sell
legislation /now-/ pending ^-ests.* Procedure to coordinate for $1.10» The majority of stores
with respect to increases in pay >" the work of both this division along the route will be closed.

.the

Com-

modity Credit Corporation.

the

f; Supply depicts the evolution of weighed the number available it
City,-the conditions of poverty ii;-the various types of orders used was decided to place them on sale.
are
so
by. the Division -in allocating Seats in the reviewing stands at
acute
and
pitiful that
scarce goods to civilian industry
Fifth Avenue between 41st and
even
a
contribution
of ~ $5 ra
week might mean the difference 1/ and also -appraises the -proce- 42nd Streets are being sold for
«rdures which the Division has $5.50 and those in the grandstand
between
barely making both
7 developed
ends meet or a starvation diet.
for - consulting
or extending along Fifth Avenue be¬
when Congress enacts-

for Lend¬

operations by the

/ Don't try to "live up" to your
opening of important
conferences between American gasoline ration.( Stay under it—

with

and

Wheat, cotrosin and tobacco

made available

were

Car Owners Who Save

foodstuffs

$4,545,919 and non-food¬

stuffs $113,686,453.

His arrival, announced by the
British Press Service, coincided

Fifth Avenue.

Civilian

other

Purchases

This

Joel

was

the urgent request of

Dean, Chief of the Fuel Ra¬

tion Branch, Office of Price Ad¬
ministration, on May 30, in a state¬
ment encouraging motorists in the
Eastern rationed area to make vol¬

untary r eductions in their mileage
beyond those imposed by ration¬
ing.
(

Under

circumstances,

the

statement

emphasized, will such
savings result in penalties for the
card holder, or place him under
any disadvantage when he applies
for

card.

a new

Many holders of "B" cards have
expressed
the
desire
to make /
every possible reduction in their
mileage.
At the same time some
motorists expressed the fear that
unused units on their cards might'"
indicate that at the time of regis- v
.

tration
they .had padded their/>
mileage estimates. Such an indi-7.
cation might lead to investigation-*
and

penalties, it was feared, evenj\
though the estimate of mileage
was

made honestly

faith.

/"While

the

and in good
<

shortage

y
pe-$

troleum in the East is critical, the
national

April

Associated

Press_.accounts June 3 stated:

War

cohstitutional power.

- because ' in thou¬
homes in New, vYork

com¬

/ averaged slightly more than 20
cents a pound
compared with

yl, holds the rank" of Vice Ad¬

Army will take part in the
-are weighed in
setting commod- spectacle. About 200 floats repre¬
// it'y/ price ceilings is the subject senting the United Nations, Latin
married but who are contrib¬
J/of an article by Assistant Ad- American countries, and nations
uting to the partial support rof
that have come under Axis dom¬
their parents or families./In the J* mihistrator D. H. .Wallace and
//P/JH/ Gbombs, OPA economist, ination, as well as many private
great majority of those cases th^
I which is fallowed by a study, of companies, will also participate.
registrants are/earning meager
Much emphasis will be placed on
wages and • their. $ contributions ///the economic and legal questions
to
the
household
have X been /v of Tent/control by Karl Borders, advertising War Bonds, the United
^Director; of OPA's Rent .Divi- Service Organizations and other
equally meager; perhaps ronjy
K sion.;:^^;.;•, '/ ../-/./^ relief units.
►
•
:•
$6 / Qr./$i p?/ $8! a ;Week/; sThe
Since the demand for seats in
deferments were rightly granted/
DeputyfDirector J. L. Weiner
sands :of

of all

delivered

modities

/ ;;vi,What economie considerations

•

from

rose

in March.

and

•

Division

23,198,- >

transferred,

was

much1

dried eggs totaled
12,727,000
pounds or 5,000,000 more than

indus¬

./ vard Lajv School to justify the demonstration will take
place all
^/an exercise of /Federal day Saturday (June 13) along

L^ of ^WPB's

1,997,500 pounds in March to 2,270,000 in April.
Deliveries of

times

milk—over

pounds

milk

back-

of
war

/n^eds. are also found, by Profes- New York City War Parade
// sor Paul A. Freund of the HarA "New York At War" parade-

depen¬

than

while the quantity of dry skim

con¬

also to be noted that Lord
Mountbatten, head of the
British
Commandos, arrived
in

Clark,
now
OPA
consultant.
[ General Counsel Ginsburg antralyzes in detail the provisions

ministrative

four

evaporated

;
It is
Louis

as/tlie

than

000

United

Mr. Lyttelton on June 7 visited

Columbia

that

quantity of
more

/' doubled, the total reaching 101,974,000 pounds for the month.

object

Detroit, where he viewed the

price control to wartime

University

with

announce¬

The

delivered

meat

White

Production

the

with

States through establishment of
joint production agency.

miral.

Duke

contributors

inflation is discussed in
ground

nevertheless,

i r While on the

tion of
i'

dency deferments in New/York
'City are registrants who^re

and

against."

announcement

Many

be-

substantial propbrjtiobf,
of the/ 600,000 - men.

who have been granted

replacing

& defects, with women, and above
7 all with men/over 45, capable

very

however,

call

and

delivered

explained:

foods./

trated
v

visit to this country was the
"integration" of British war pro¬

the Duke symposium are prom¬
inent OPA officials.
The rela¬

dependency.
men

the

Minister

University Law School says:

percentage prevailing through¬

defense plant, it is
I my prediction that their Local
Boards will call upon them to
report for induction before the
//next .six months are over, f; V,
■1

that

discriminated

In-its

out the nation.

men

/training in

600,000

is substantially the sam£

semi-

without dependents,
the men with only a compara¬
tively
brief
employment
or
skilled

be such

justified in feeling that he has
been

classifications in New York City

to the tens of thousands

the

3
on

desirable

/ military material.
But

because
of

June

Roosevelt

Axis.
registered in New York City last
February, the percentage of de¬
Incidentally, the
presence
in
pendency deferments will un¬ f/conferring power on the Ad- London of Lieut. Gen. Brehon B.
/ministrator and providing for
doubtedly be even higher, as
/the Act's enforcement. North¬ Somervell, United States Army
will also be the rejections for
Chief of Supply, is likewise noted.
western University law profesphysical reasons. Only a small
His arrival in London on May 27
: sor, N. C.
Nathanson, now OPA
percentage of these 600,000 men
followed the appearance there on
will eventually be classified in -^Assistant General Counsel, de] fends the Act's novel provisions May 26 of Lieut. Gen. Henry H.
I-A and inducted into military
Arnold and Rear Admiral John H.
service under the existing regu¬ // for the protest and judicial re¬
view of the Administrator's or¬ Towers, chiefs of the Army and
lations.
ders pointing out that war ex¬ Navy Air Forces, and other high
The
service officials.
percentage of deferred
igencies require streamlined ad¬

able-bodied

tween the ages of 36 to 45 who

training

and

ulations

first

Boards

engineers and graduate chemists
and other men of that category

There

the administration of these reg¬

registration in October, 1940, for example, more
than 600,000, or 60% were placed
in Class III-A by their Local

United

year."
conferred with

Lyttelton

Nelson

the

and

eggs, meat products and concen¬

Lord

of last

President

-defined over-all policy and that

to" supply

registered in New York City

Brit¬

many

like a rather ample pool

manpower

/'/Out Wtiie 1,000,000 men'be¬
tween the ages of 2i to 35 who

officials

and

visited

the end

Mr.

duction

'the
needs of both industry and the
armed
forces, but this figure
standing by itself, falls far short
of fellirig the whole" story.

There-

;

was

British

and

Minister

Beaverbrook

co-

is " no
question that
of the able-bodied young
men
without dependents who
are now employed in war production
plants cannot / reason¬
ably be replaced in six months.
) I have in mind really skilled
machinists who have completed
r an
apprenticeship of three or
i four or five years, and graduate
*

several

experts

Prime

the

esti¬

on for thorough
cooperation," Mr.
System
regarding
the
third
Henderson
continues,
declaring
registration we * now have .ap¬
that fairness is the "sole respon¬
proximately 27,000,000 men, be¬
tween the ages of 20 and 45 in¬ sibility" of the Office of Price Ad¬
ministration.
He adds:
clusive, registered for Selective
7"" "The elements of fairness, as
Service in this country. /
I see" them/ require that all our
Twenty - seven ; million men
regulations conform to a well¬

haphazardly," ^adding, "in¬

supply

program.

cost

During the past April, when
of
farm
products
doubled compared with March,
627,475,000
pounds
costing
$127,029,000 were delivered. The
increases were largely in dried

his

quarters of the Selective Service

dustry is employing women in in¬

"operating. with Selective Service
to a marked degree." * In part he
continued; //
\
'

aid

Total

transfers

Nelson, War Pro¬

Will review the British supply or¬

"Law arid
Contemporary Problems." "Once

figures

the first two regis¬

mates issued by

that

creasing numbers—industry is

and

and the Supply Department.
ish officials, said Mr.

Leon

introduction

-Emergency

lished

•

affects,"

Administrator

Act"

had / the

basis
on

those

"The

published

Price

Henderson

the basis of

Col. McDermott
following to say:

defense

accompanied

States

writes

Department's

ment further

kins, special Presidential assistant

accepted

June

4,977,475,000 pounds bought
the Agricultural
Marketing

shipping points since the program >
began in April, 1941, was $651,529,000.

duction chief, and Harry L. Hop¬

the

activities of the individual

himself.

regis¬

young

production

interest, it cannot be successfully
administered unless its necessity

Service;

Selective

ably be decided

in¬

longer taking

able-bodied

ported
the

ister

•

Col.

shipment up to May 1, the U. S.
Department of Agriculture re¬

Lyttelton,

such thing as blanket de,r

the

dustry does, and the Army and
the Navy come first. /;
-

delivered to representatives of the
United Nations
for
Lend-Lease

The

Oliver

production

Price Control Act-

Approximately 5,000,000,000

of the British Minister of Defense

Every classification must invari¬

need

them very much more than

oc-

many

ferments

desires able-bodied young men,

\ the Army and the Navy

ject/of the concluding article
by the chief of OPA's Foreign
/ Information Unit, W. S. B. Lacy,

is the question of
crip&tional' deferments.

be-further from the truth. There

have become semi-skilled.

We,
Service, realize that
if they
were
to be suddenly
pulled out of the plants, whole¬
sale and overnight, it would unquestionably result in a serious impairment of production.
But, eventually, they must be
replaced. They must be replaced
by older men, and by men with
dependents, and by men with
physical defects, and to a con¬
siderable extent, by women. No
matter how earnestly industry

ish wartime laws forms the sub¬

Product

pounds of farm products had been

ganization in the United States
and everybody in the newspa7 Because theprice control law "in the light of the combined ma¬
" per industry, from the office boy
to' the1 president, were entitled "iq / effect makes ordinary busi¬ chinery for Anglo-American co¬
to deferments!
Nothing'could ness policy contrary to the public operation which was set up when

•

in Selective

the

;

deferment." He added:

from
that

people to mean that
//everybody in / thelabor unions
great

supply of man¬
Army and the
Navy. In making that drawing
the greatest problem which con-

.effort^

and' that

our

for

power
■

were' activities ' ,whic.lv

ample,

;

•

Farm

Deliveries To May 1

Administration

27,000,000 available for

:niust draw

field of labor relations, for ex^

//contributed to the

have

to feed.

'. much v smaller number

the

and

mouth

military service.

Headquarters of the Selec¬
Service System thait the

i /newspaper

/•The speaker/ asserted that the
upon

;

months

Several

less

one

must face
the situation as it exists today.
As I have indicated, our pool
of
27,000,000 registrants, does
not by any means indicate that

important or unimpor¬
particular duties may
happen to be.
•' - • ' 1/

men, and is still reluctant
to obtain replacements
by employ¬

Nevertheless,

his

tant

young

chief

with

en¬

the contribution
now
making to the
most
instances, and

are

home

how

training men over 45
of age who are exempt from
military service."
/

they

deferment regardless

least equal

;; at

Control

Section.

price
and civilian supply under Brit-

•

try which contributes to the war

City, made the statement that "so

fense

Lend-Lease

sents

" an

shortage of rubber preeven-- more
desperate

situation," Mr. Dean said.
"For
the average motorist the tires now
on
his car are the only ones in
Therefore, he should be¬
reducing his mileage every¬
way he can right now.
•. "It
is to be hoped that every
car owner, regardless of the kind
of ration card he holds, will make
a voluntary cut in his driving by
at least 50%."

sight.
gin

THE COMMERCIAL & FINANCIAL CHRONICLE

sition alongside-other freedomstages of the war—that is up to
December, 1940 — we received I loving nations which have been
the subject of criminal aggrespartial payments in gold.
The

Opposes Dictatorial Powers For President,
W Taking Issue With Views Of Hoover

amount

involved,

used

was

with

President Herbert

Exception to the recent proposal by former

ondly,

Shuster, President of Hunter College, in New York. Dr. Shuster, who
spoke at the commencement exercises of the Graduate Faculty of
political and Social Science*of the New School for Social Research,
while commending the leadership^
We must start our thinking
in
of
President
Roosevelt
in the
with a disagreeable, cold, hard
present national and international
fact.
That
is,
the
economic
crisis, nevertheless
urged that
measures necessary to win total
Congress should assert itself to a

tional

nomics.

reporting the views of Dr.

Shuster, likewise indicated that in
remarks he pointed to the

his

failures and weaknessess

liaments

application of this
sort of economic; system at the
hands of democracies or by dic¬

and

in the

First, in democracies we

tators.

speech, free

strive to keep free

"I have the utmost respect for

American

Mr. Roosevelt as a leader and a

Dr. Shuster said.
down in history as
who saved this nation

are

life,

out after the

man

dire

most

the

from

menace

But I shall confess
might well be willing

its history.

that

take

;

much

have

could

the

prepared for counter¬

"The

bulwark
of
liberty,"
he
confinued, "is,, to be found in the
nature .of the government itprimary

head

and

likewise

the

tion

and * you

ties. But
iiave

parliament

power,

how to

or a

use

"What

Con¬

It must

not enough.

gress is
-

that representa¬
lose your liber¬

and it must know
power intelligently.
is

reason

there

the

not

the

Jem

when

effectively
the

address

come

war

supplies which
■:

inflation. We

vitally

for

terribly

wbich

Con¬

have to ob¬

It is

Our

sales

considerably larger and we are,
therefore, hoping that we shall
come
closer to a balancing of
than

accounts

did last year.

With respect to the

ernment

borrowing,

other great personal freedoms and

population,"

of U.

terms

into

"Translated
income

and

What

permit

the

President,
r"

Mr.

the

•

limitations

yy -dom,

economic

President

Roosevelt

must

It has been necessary to
sure

economic

There must be

lack

the

war

economic

goes on.

freedom
.

Victory

world. *

announcement

against
pan

Roosevelt

honor

States

with

fighting for the preservation of
freedom and democracy." ;'• 7

Hull issued

Secretary
"a

free

further

evidence

nations

the

that

world

submit to the heel

the

outbreak

end

people "have again demonstrated
that the free peoples of the world
are

determined to make whatever

sacrifice

may

maintain

the

which

necessary

their

founded." ~

independence

■

•

His Excellency

can

1942 amounted to

yLyy

-This
in

deficit

three

has

ways."

been

financed

the

early

the

Camacho,

United

Mexi¬

States,

work, y;

•'

The

"small

plants"

bill

agreed on also retained a House

provision

mandatory

4. Construction.will not

•

f ;

duplication

result

expansion of existing plants or
;
•
under construction or
7\Congress has designated June
about to be built.'^Aivir"';.
*
>13 as Douglas MacArthur Day in

June 13 MacArtHur Day;

All possible economies have

|
'

columns June 4, page 2125.

these

unnecessary

facilties

r been
*

made iri the project,

all non-essential parts

deleted,

y:„

•

with

and items

,y:^'y

honoriof Gen. MacArthur and all
those

pino

armed

with

the

him

American

forces

and

who
him

under

Fili¬

served
in

the

•

-•

|yj;6. The projects

!quirements. ; '
•;
y y
S •
7. <Sufficient -labor,/ public

declaration, of

Japan,
a battle po¬

Italy > and

thereby taking up

war-

the

House

June

President

Roosevelt

5
to

requests
issue*? a

transportation,, raw proclamation inviting the public
to. observe the day with suitable
materials, -equipment and the
patriotic and public exercises. -*
like are available to build and
-June 13 is the 43rd anniversary
operate the plant.
'

.utilities,

Germany,

be."

.Senate approval of this bill
ends, it is believed, the contro¬
versy oyer application of antitrust laws to war production

formal

tion might
<

making
it
virtually
for government war
| tion would be y detrimental to agencies to award contracts to
small enterprises certified by the
; ,the war effort.; , '
;
| '- -3. It is -not; practical to rent WPB as capable of handling them.
House passage on May 26 of the
ior convert existing facilities for ?
i
the purpose.
original measure was reported in
* *

I have been informed that the

•

February,
$1,770,000,000.

's'".V

Postponement of construc-

United Mexican States has made

the

the effect of business collabora¬

are of the sim¬ heroic defense of the Philippine
plest possible type, merely suf- Islands..; The resolution, which
June 2, 1942. V
! I ficient, to - meet minimum \re- passed the Senate on May 28 and

General Manuel Avila
of

the bill that he did

would be satisfied to be able to

facility will not be

effort.'' •'

;

; y

message

war

1. It is essential for the war

•

Roosevelt's

President

sacred ' principles

(Rep.,

testified

point out to Mr. Nelson what

;

def-

approved for construction unless:

kept

from

of Axis

Mexico, D, ; F. (Mexico).

icit

the

will

has

Biddle

hearings

quired use.

aggression" and that the Mexican

never

President

war

state¬

saying that the declaration

reply, Senator Taft

eral

addition, WPB emphasized,
be necessary to make

which can be converted to re-

Ohio) stated that Attorney Gen¬

will

Any

welcoming Mexico to
that community of nations united

ment

eral.

and guns now,
putting them into

the

giving the Attorney General the>

consult with the Attorney Gen¬

fullest use of all existing plant
facilities currently suitable or

to President Ca-

aid

right to veto any of Mr. Nelson's •
decisions,"
observed
Senator'
Norris, after noting that the bilb

simply

means

Mr. Roosevelt
declared that "the people. of the

United

tanks

Ja¬ j

President

Mexico,

make

The United Kingdom

policy

than

Secretary of State

message

macho

June 2.

com-'

"There is nothing in this bill t
t

for

hailed
and

war

Germany, Italy and

was

Hull

Com¬

those

plants which would not produce J not* want that powers :
"The Attorney General," said
fighting weapons until a much
?; Senator Taft, "testified that he
later date." y.--

AIIj In War
*

Trade

when

acts

panles act 'collectively
war production.

shortages, it is necessary to put
materials and effort into planes,

;

declaration

Federal

the

and

| that, in the light of existing

Mexico WelcomeAAs
Mexico's

prosecution under the Sherman

•

"The

rather

U. S.

spared

Norris (Ind.,
against {giving
Nelson
virtually full
Senator

I building, facilities -except;when i
I they are absolutely necessary." J requires Mr. Nelson merely to

can

discus-

to except companies from

power

now," a WPB
said,
"and^ no

materials

peaceful

production

mild

argued

Donald

new

ships,

■

ical

countries

reconstruction

.decrease

after

both

bill.

Neb.)

mission

war

shortest

ada.

powers.

giving ,> them to him and upholding him in them.- Morerover, we must expect a steady

the

will
find themselves in good shape
to handle their post-war prob¬
lems
and
to
cooperate
with
vigor and good friendship in the

Canadian

the

privately financed,
to war plants.

policy is that all crit¬
materials are needed for

the

approved
the
unanimous

almost

cussion of anti-trust features of

"One of the main reasons for

possible

the United King¬
dom from buying all the things
they needed to obtain in Can¬

have

hesitation

that

dollars

war

dictatorial

within

that

such

achieved,

follows:

Kingdom, Mr. Towers stated:

free-

for here are the maximum

restrictions.; To win total

the 'two

Senate

vote after

voice

is May 30 said:

be such as to

maximum

effort

'
.

policies

measure

and
as

of Com¬

reported
the
following
its Washington bureau on

The

ashamed.

genuinely, desire

well

possible time:; that they> should

Referring to Canada's financial
relationships
with
the
United

for

We may first contemplate the

directive, agreed

the Secretaries of War and
the Navy, and Donald M. Nelson,
Chairman of the WPB, applies to
all
war-time
construction, both

which

feel

need

the

countries should

was

self-interest

thait

Which
powers

anyone

upon

War Production

the

The

"Journal

the New York

merce"

reporting this action Asso¬
ciated Press Washington advices

figures."

Hoover said:* '

-* "

Included in the final version of.

attention.
obviously in¬
concern
with

"abso¬

form

tfeaw out any frozen liberties." As
to that part of his address in
dictatorial

and

our

plants

are

transpires south of the
boundary line, but it is not a

said, "these re¬
sults
could
be
compared to an
American loan yielding $13,000,000,000 cash and 20,000,000 sub¬
scribers." "I think," he said, "you
will agree that these are imposing

advocated

May

Board.

what

close to the

/naturallypay

subscribers."

keenest

war

new

publicly

materials in 1942 should be

suffer most by the war, we can,
if we will, and we must, keep the

their safeguards alive. Live free
speech, free radio and free press,"
fee added, "are the heat that can

tion.

lutely essential" and can meet from
new requirements were issued on
June

sympathetic

volved

facilities

such

unless

your

the

Self-interest

de¬

was

field of Gov¬
Mr. Towers
ference Board, Inc., at which time observed that "the Second Victory
Jflr. Hoover, as noted in our May Loan of last February produced
21 ■ issue, page .1946, stated that a total of $845,000,000 cash sub¬
"while
economic
freedom
from nearly 1,700,000
must scriptions
Industrial

corporation to lend funds to con¬
vert small plants to war produc¬

•!

itself to

watching

are

with

materials and

$142,000,000.

war

made by Mr. Hoover
speech on May 20 at the anpwal meeting in New York City
National

extend to you on

nothing

abandon

most

practical working arrangement
and so long as" it does, in' fact,
work, we shall be able to carry
on. It was not, of course, opera¬
tive to any great extent in 1941
and during that year our United
States dollar resources declined

the

behalf their deepest sym¬

construction

been

efforts

Pa¬
to

United States dollar cash.

powers was

their

tain from the United States and

proposal
that President
Roosevelt, be
given
dictatorial
in

■

cost to

The

time I

disaster if the United

its hands and

spiritual

devotion

not

States would

nation, one can only conclude
that
something
wrong."

At the

same

States had decided to throw up

(Continued from First Page)
from us by the United

Senators
did
not
peril confronting the

important
sense

that

freedom and democracy.

authorized

have

would

short of

chased

"see that Congressional commit¬
tees have not acted promptly
and

the honor

Ion-Essential Plants

Canada's Economy
On War Time Basis

group
of
consultants
hastily
summoned by Presidential order
can find a solution?
When we

Bars Construction Of

war

that

grants

one

the

people

He is not

people.

Hoover's

Mr.

theory for thinking that a Congressional
committee
cannot
find a valid solution for a prob-

Congressional action on
the
legislation setting up a Smaller*
War Plants Corporation in the.
War Production Board with $150,000,000 capital was completed on
June 4 when the Senate adopted
a
conference report, which the
House had approved on June 3.
The Senate had voted on April 1

for a $100,000,000 capitalization
United and the House
approved on May,
26, $200,000,000 the conference
of welcoming Mexico to that
committee compromised on $150,community of nations united in
000,000. The bill authorizes the
fighting for the preservation of
The

States share with

Canadian

war.

Waive Anti-Trust Acts

pathy to the families of your the bill is a House
provision giv¬
countrymen who have already
ing Chairman Donald M. Nelson «
given their lives for our corn¬ of the WPB
statutory authority to
understand that the real means': mon cause. By our victory and
permit cooperative industrial pro-'
the use we make of it we shall
j; ing of the transaction is that
grams essential to the war with¬
Canada is making a contribu¬
j * consecrate the memory of their out regard to the anti-trust and
tion
of
guns,
tanks, aircraft, : supreme' sacrifice.
*.
Federal Trade Commission laws.
other munitions
of war, food i
I take this opportunity .to send
Mr. Nelson only would have to
stuffs and supplies, to the full
you my warm personal regards
"consult"
the Attorney
General
extent
that
these
things are
and my
appreciation of your
before making such rulings.
needed by ether parts of the :
many
and valuable contribuEarlier (June 1) the Senate Ju->
Empire.
Financial considera¬ f tions to our common cause.
diciary Committee had approved
tions do not enter into this pic¬
FRANKLIN D. ROOSEVELT. a
separate bill on the same sub¬
ture, with this single exception,
ject—requiring the WPB to ob¬
that to enable us to pay for war
tain the "approval" of. the Attor¬
supplies from the United States,
ney
General before permitting
we need to sell some war sup¬
suspension of anti-trust regula¬
plies to the United States.
tions. However, the Senate finally
As to the United States price
agreed to the House amendment
control policy, he made the fol¬ r Formal
instructions
barring
in the war plants bill. As to this

for freedom can be summed livered
under
the
title,
"The
up as a fight for representation Limitations on Freedom In War."
in the supreme legislative coun¬
up

Parliament

March

'•'< gle

Give

the

for the duration of the

public servant. It is devotion to
our country and its right aims.

cils.

from

nation.

Government to the Government

may

triotism

ment, it. is* the Congress. The
whole of the great human strug-

loan

000

conduct

sacrosanct like the Mikado.

Democracy is the parlia¬

self.

Kingdom and this, to¬
gether with some repatriation,
accounted
for
approximately
$820,000,000. The balance of the
deficit to the end of February
last was covered by a $700,000,-

lowing comment: ';

war

President

American

the

United

rightly lead to
criticism of public officials.
In
a democracy even the President
is not immune from rightful
criticism.
I
ought
to
know
something of the theory and
practice of that subject.
The

action^ Dr^ Shuster declared.
?

right,"

the

not

must

win
con¬

war

said:

only understand the
nature of the Nazi regime but
must

the

conduct

We want the

war.

ducted

survive we

that

said

also

the

Criticism

form

democratic

the

Hoover

is necessary if we are to

war

greater Congress."

government

;
*

weaker

somewhat

a
if

President

Mr.

"criticism

thaw

shall

but

war.

"He will go
the

into

frozen

not

measures

-statesman,"

their

WPB Given

free worship, trial by
jury and the other personal lib¬
erties alive.
And second, we
want to so design our actions
that
these
Fascist
economic
press,

lows:
*

differ¬

But there are two vast

government that they want some¬
thing done, and quickly, is a grave
danger."In
the
"Times"
Dr.
Shuster was further quoted as fol¬

prepaid
held

debt

gift of $1,000,000 dollars to the
United Kingdom. While the gift
is phrased in dollars, you can

ences

said "the inability of modern par¬
liaments to tell the executives

the

Railways

of the United Kingdom—a loan
which is non-interest
bearing

of par¬

factors in

totalitarianism

rise

the

Europe

Sec¬

Govern¬
Canadian' Na¬

of Fascism was born.

The New York "Times" of
in thus

States.

Canadian

and

bonded

deficit

our

organization developed by all
nations, including the democra¬
cies, during the first total war,
that the economic department

Executive.
June 5,

of the

actions

the

ment

pust plain Fascist eco¬
It was from the war

are

war

it has and

than

degree

exercise more effective influence

United

the

| sion by these enemies of human
liberties.
Mexico, too, became
the victim of unprovoked at¬
tack, and Mexico has in charac¬
teristically resolute and virile
fashion, answered this challenge
to its dignity and liberty. Once
again the Axis tyrants have
woefully erred in their ap¬
praisal of the temper of a free

$250,000,000,

reduce

the

win total war" . . . "must have
dictatorial economic powers," was taken on June 4 by Dr, George N.
Hoover that President Roosevelt "to

greater

Thursday, June ll,tl942

;

Plans;for

this action were re¬

ferred to in these

21, page 1949. \7-

columns of May

of the appointment of Gen.; MacArthur

the

at West Point.

Military Academy
,

v;.,

•:

Volume 155

Steel

Number 4080

THE COMMERCIAL & FINANCIAL
CHRONICLE

Oiitpul In May Exceeded April Total

.Production

steel

during

May

exceeded

the

total

Eleclric

produced

the shorter month of April and was within a fraction of 1% of the
peak set in March of this year, according to a report released on
June 9 by the American Iron and Steel Institute. A total of
7,386,890
tons

steel ingots and castings was produced in
May,
with 7,122,313 tons in April and 7,392,911 tons in March.

Steel production last month

compared

Output For Week Ended June 6, 1942 April Farm Gash Income

Shows 9.6% Gain Over Same Week in 1941
The Edison Electric
mated

that

the

ago, when 7,044,565 tons were produced.

During the month of May, the steel industry operated at an
capacity, as against 97.7% of capacity in April.
capacity was substantially less than at present,
operations averaged 98.5% of capacity.
An

1,6-37,470 tons of steel ingots and castings was
produced per week. during May, compared with 1,660,213 tons
per
week in April and 1,590,195 tons
per week in May of last year.
average

PRODUCTION OF OPEN HEARTH, BESSEMER AND ELECTRIC STEEL INGOTS
AND
STEEL FOR CASTINGS

PERCENTAGE INCREASE OVER PREVIOUS YEAR

Southern

Rocky

1942 t,

April

•

94.7

96.o
98.2

96.3

(net tons)

in month

1,608,335
1,630,264

February

1st Quarter

—

Apr.

18_;

12.86

May

2nd

98.2

1,667,470

4.43

May

—

96.8

1,562,608
1,557,589
1,608,127

99.6

4.43

97.7

1,576,727

August

September
3rd

*—__

Quarter

months

—

October—

——

1,574,401
1,590,195
1,583,392

4.29

1,582,744

13.01

S7.6
98.5
98.1

20,591,495

98.1

97.9

1,579,753

25.87

93.3

1,541,227

4.42

95.6

1,579,570

4.43

96.3

1,591,531

4.28

95.1

1,570,562

13.13

96.9

1,576,658

39.00

7,236,068

;

4th quarter

98.9

1,633,424

98.2

1,622,584

4.29

97.9

1,617,718

4.42

21,347,268

Total82,836,946
tBased

4.29

6,960,885

——

December

100%

4.43

7,150,315

November

the

Production*

98.3

"4.43

13.14

1,624,602

2,528,868

1,469,810

+ 10.9

2,499,060

1,454,505

1,699.822

2,503,899

1,429,032

1,688,434

+12.2

3,003,921

3,372,374

1929

1,480,738

turns

+12.0

2,515,515

1,436,928

2,550,071

+11.2

2,588,821

2,954,647

+12.5

2,477,689

1,435,731
1,425,151
1,381,452

9.6

2,598.812

1,435,471

1,588,741

52.14

Reports by Companies which in 1941 made 98.5% of the Open Hearth,
and 87.8%
of the Electric Ingot and Steel for Castings

Bessemer
,

Note—The "percentages .of capacity operated are calculated on
weekly capacities of
1,498,029 net tons open hearth, 128,911 net tons Bessemer and 71,682 net tons electric
ingots and steel for castings, total 1,698,622 net tons; based on annual capacities as
of Jan. 1, 1942 as follows:
Open hearth 78,107,260 net tons, Bessemer 6,721,400 net
tons, electric 3,737,510 net tons.
>

and

From

Washington

(Continued from First Page)
be Dictator of Germany ana the
cause
celebre
of ; the
present
world conflagration, is no more
than

the

rise

Leon.

The day he was named Price Ad¬

ministrator—and we so reported
at the time—business circles gen¬

better

and

cotton

loan

1941,

was

Leon
off

left

town

commune

ings, of eggs,: with but Utile
change in prices, resulted in:.

him¬

almost

cations reported.

because of the smaller
quantity
of corn placed under loan dur¬

Dealers

means

And if by being

Leftist, I lend

support to that statement.
Business
man
after
business
man,
down in Washington, has
told this writer that he would

deal

with

Leon

ing

building up plants to
compete with them after the war.
They
as

term

came

which

Leon is

very

sensible fel¬

the

crusade,

thought

out

from

The seasonally adjust¬

index

marketings

them.

Usual"

returns

groups

change.

subse¬

to be saddled upon

Leon, for some reason or an¬
than many, if not most of the con¬
other, in the few weeks in which
fused
Dollar-a-Year
men
with he was
sojourning with himself,
whom he came in contact. I don't
and figuring out that he was
get¬
doubt in the slightest that that is
ting nowhere in the "Business as
true.

while

of
commodities
made about the usual seasonal

day

any

April,

other

against this "Business

were

Usual,"

quently

In¬
from feed grains declined
more than
seasonally

somewhat

frightened
industry
to
They visualized the New

death.

April for these products.

come

Usual" project of the New Dealers

erally welcomed it. Leon was no
radical, the business trade publi¬
radical

somewhat more than the usual
increase in income from March
to

mind, this "Business

than

Increased

butterfat and increased market¬

self.
Bear in

1924-29

income

from

rose

farm

127%

in March
The index of

average

to 135%

in April.

income

from

crops ^ increased
114.5%, and the in¬
income/,from livestock
and
livestock
products from
1147,5 to 154.0%.
r;

from 104 to
dex

low, a man who carries more new idea. It was
that if you were
The total cash income from farm
knowledge in his head of a par¬ not
going to have this extended
The percentages of capacity operated in the first 6 months are calculated on
ticular industry and of the varied
marketings from January to April,
weekly
production, this expanded plant
capacities of 1,430,102 net tons open hearth, 134,187 net tons Bessemer and 49,603 industries
of this country, than
1942, of $3,712,000,000 was 49%
net tons electric ingots and steel for castings,
capacity—then there had to be
total 1,613,892 net tons; based on
any man I ever ran into.
It is control
higher than in the first 4 months
annual capacities as of Jan. 1, 1941, as follows: Open hearth
of
74,565,510 net tons,
prices
to
prevent
of 1941. Returns from all
Bessemer 6,996,520 net tons» electric:
2,586,320 net tons. Beginning Juljpl, 1941, the easily understandable why a busi¬ "inflation."
groups
Ah, that is a word of
percentages of capacity operated are calculated on weekly capacities of
1,459,132 ness man coming down to Wash¬
commodities
were
with which the bureaucrats have
sharply
net tons open hearth, 130,292 net tons Bessemer and 62,761 net tons electric
ingots ington and
talking to Leon would been
higher than a year earlier.
and steel for castings, total 1,652,185 net tons; based on annual capacities as follows:
really going to town, and
Open, hearth, 76,079,130 net tons, Bessemer 6,793,400 net tons, Electric 3,272,370 think that there is an understand¬ the
things they are doing under
net tons.
ing

fellow

and

not

one

its cloak

are

feared.
But

Labor Bureau's Wholesale Price Index

the

that

trouble

Leon's

seems

organization

him.

overgrown

now

has

Business

men

WPB Construction Bureau

nobody's business.

Now, why did

have to have

Moves To New York City

this control of prices?
Well, with¬
out extended and
expanded pro¬

duction,

the

The

the

Bureau

War

Construction

Production

American

Board,

of
re¬

people cently established to coordinate all
larger, in¬ construction functions of the
WPB,
has removed its headquarters to
having the goods to buy, because
The Bureau of Labor Statistics, U. S. Department of
Labor, an¬ was inevitable. And there is not
the Empire State Building, New
of non-extended and
non-expand¬ York
nounced on June 4 that its comprehensive index of nearly 900 price the slightest doubt in the world
City.
ed production, would
begin bid¬
that in talking to most of these
series in primary markets edged fractionally upward during the last
Except for a small office staff
ding against one another for the
subordinates, the business man is
which will remain in
week of May.
Washington
available goods and thereupon we
With a gain of 0.1% the all-commodity index reached liable to be
frightened, if not would have
for liaison work, the entire or¬
inflation.
It's
the
98.8% of the 1926 average, the highest point in more than 15 years. scared to death.
ganization under William V. Kahmost logical sounding
thing you
Continued increases in prices for agricultural products, particularly
Why is this so? Why wouldn't
ever
heard of.
Leon met Harry ler, Chief of the Bureau, is af¬
a
man
of Leon's
temperament,
fected by the change.
livestock, accounted for the advance. In the past 12 months the index
Thomas L.
whose only ambition in the world Hopkins returning from Europe,
has risen
sold him this idea, and became Peyton, assistant to the Chief, will
was to get
16V\'
along and be a power
be in charge of the
Price Administrator.
Washington
The Bureau, makes the following notation:
but not a radical power, have sur¬
office.
rounded
Well, it so happens that during
himself
with
men
of
During the period of rapid changes caused by price controls,
The
Bureau
is
divided
into
all of these shenanigans of
materials allocation, and rationing, the Bureau of Labor Statistics similar minds?
Leon's, five operating branches:
;;
;
Project
the New Dealers had begun pass¬
The
answer
will attempt promptly to reporrchanging prices. The indexes, howis
right funny.
Analysis Branch, Materials Con¬
eve^ must-be considered as preliminary and subject to such adjust¬ Around the turn of the year 1940- ing around the word that Leon trol
Branch, Project Service
ment and revision as required by late and more" complete reports.
41,. just a ^ew weeks after the was really not a New Dealer any Branch,
Housing Branch and Con-A
New. Deal had come in for a third more, that he had gone off with
sultation Branch.
The following table shows index numbers for the principal
What
must
term, Leon was one of the advo¬ the Conservatives.
From the announcement we also
groups of. commodities for the past 3 weeks, for May 2,* 1942, and
cates of "Business as
Usual," a they think when the -Conserva¬ quote:
f May 31, 1941, and the percentage changes from a week ago, a month
v
phrase which has been completely tives
Direction and decisions of jike
welcome his job as Price
ago, and a year;ago/1;*:*
■ *'• • ••
-

Shows ^Slight

Advance In May 30 Week

coming down to Washington don't
see
Leon.
They see one of his
thousands of' subordinates.
This

turned

■>-■ (1926=100)

Percentage changes to
'l

■

v*.

5^30

5-23

5-16

5-2

1942

*98.7

*98.5

?98.7

106.0

104.8

104.3

99.4

99.1

98.2

products—119.0
;.
i—97.2

119.2
97.2

119.8
97.3

V. 97.2

Fuel and lighting materials——.
78.9
Metals and metal products
*104.0

,78.9

78.8

78.6

*104.0

*103.9

Building materials—I——J. +:/l09.9if 110.0

110.1

108.7

97.3

.97.1

.'
'

Commodity Group*—

All Commodities

Farm products—
Foods*
——*
Hides and leather

/■/;'%

—-~-V?■ *98;8

;

Chemicals and allied

Housefurnishing
Miscellaneous

Raw materials_^____'_-

'products

104.6

90.1-.
92.7,-

*99.1,

*97.3

products and foods

"Preliminary .U-y?//ivt-irr

1941

85.2.

*+0.1

+0.1

+16.0

104.8

77.3

+ 1.1

99.9

79.2

•

120.0

+ 0.3:

107.8

—0,2

83.2/ e;c:"+'0r
77.7

;

+37.1
+25.5

—0.8

+10.4

■

1.5

+ 0.1

5.9

—0.1,

98.X

+ 0.4
+ 1.1

9.4

.83.9,

+ 0.2

92.7

—0.1

79.7

—0.1

98.9

100.1

80.4

+ 0.8

+ 0.5

.92.8

92.8

92.5

86.7

^-0.1

+0.2

*99.2

*99-3

99.1;

87.6

—0.1

90.2

90.2
99.8

+16.8

100.5

104.6. .104.6

+ 1.1

—0.5

+16.0

—0.1+12.7
+ 0.6

+13.0

+25.1
+

6.9

+ 13.1

•

since.

the

The

New

"Business

they
only

demanding that

were

carry

our

-•97.4

^95*9

*97.2

97.3

*95.9

95.6

87.0 m

88.2

+11.8

0.3/.+/6.7
It-:*

1: • I

enjoying

was

their wont and not

Administrator?

----

not

all-out aid

;

But he is obligated to all these

Usual" boys in those days, in that

playing ball.

derprivileged, recreation grounds
—

with

sources

our

inexhaustible

were

for Britain but for the

people.

re¬

to build not

State

only
And
American

We were to spread
abundance of wealth, which
.

our

say,

ap¬

..still

this

school

prevailing,

Mr.

thought
Roose¬

velt, iq response ,to agitation for

right in."~_ '

.* -

what

Leon,

the

Governmental

The facilities of several other

and that

Bureau

agencies

undoing of

of Maury Maverick.
This
Branch, part of the Division of
Industry Operations, will re:main in Washington.

his organi¬

zation has been built up,
is

•

Federal,

tion

all* wrong,
';

with

Requirements, under the direc¬

them, Leon must

And that's the way

abundance after all.

While
was

reassure

tion projects are the function of

the

you don't want me."

"You've got

come

parently has turned out not to be
an

contacts
and

local .Government
agencies in regard to applica¬
tions concerning their construc¬

As he builds up his

attitude of "Now that you've gone

conservative,

Bureau will be handled in, the
;'New York office.
All

fellows with whom he has been

policy but that, in the
vast organization to have a tre¬
meantime, we continue to build
domestically—steel plants, alumi¬ mendous influence over our lives,
num
plants, housing for the un¬ these fellows come to him in that

such

;*95.9
-

5-31

1942

All commodities other than farm

5-2

1942

89.6

;

1——1 100.6

Semimanufactured articles^—
Manufactured products—;*—*-'-^
All commodities other than farm

*97.3

products—97.3
goods—™—104.5.

commodities—-—

5-23

1941

were

than

Britain

Textile products*.

May 30,1942 from—

5-31

around

Dealers

would

come

marketings
higher prices of hogs and

and

huff,

with

slightly

usual.
co¬

completely left out of the pic¬

ture.

in¬

de-

In¬
from vegetables and miscellaneous crops in April also

Advisory Council, and Leon

went

un¬

come

ordinated" defense
setup, created,
as
I recall it, the National De¬
fense

placed
whereas

from cotton usually
clines from March to
April.

1,705,460

"more

in¬

were

come

1,689,925

new

sum¬

through the redemption

sale

der

1,615,085

3,076,323

cotton

and

1,704,426

3,040,029

creased

1,698,492

+11.5

3,011,345

Situation,"

The Bureau's

from

was

rather

97.3

2,529,908

+ 14.2

2,950,448
2,944,906

3,379,985
3,322,651

June

12.86

61,489,678

July

+ 14.3

2,897,307

1,663,291
1,696,543
1,709,331

4.43

6,812,224
6,997,496
6,811,754

—:

1932

1,465,076

4.00

40,868,204

;

—

1940

2,493,690

1941

stated.

increased

+13.1

over

"The Farm Income
was

Income from farm
marketings
somewhat more than
usual from March to
April. Re-

(Thousands of Kilowatt-Hours)
% Change

Income Situation,"

mary goes on to say:

11.5

1941

3,307,700
3,273,190
3,304,602

96.5

11.2

2,959,646
2,905,581

3,365,208
3,356,921

fantastic

months

32.5

1942

3,320,858
_____

20,621,474

Quarter
6

9.6

"The Farm

1942

6,792,751

2.5
19.6

4.29

6,754,179

—

June

>lst

1,635,994
1,660,213

7,044,565

——-

May

vs'-"' j

20,276,709

—r—_

4.6

19.2

4.43

1,668,829

•

Apr.

97.7

6,922,352
6,230,354
7,124,003

—

7.0

22.1

3,348,608

Apr.

4.00

May
May

March

1.3

17.6

Week Ended—

4.43

r,V-. '•

16.7

7,386,890

January

capacity

21,038,889

15.4

DATA FOR RECENT WEEKS

7,122,313
:

10.7

the

payments in March and April are
not
yet available,
but will be
brought to date in a future issue

8.2

14.2

United States

of weeks

8.4

8.2

revised

than

published by the Bureau of Agri¬
cultural Economics, U. S.
Depart¬
ment of Agriculture.
Government

9.3

9.0

higher

April last
year, according to the May issue

8.7

12.6

Mountain

46%

was

the

$665,000,000 received

May 16, *42

9.8
.8.2

10 *

Number

all companies

May 23, '42

9.2

with

$901,000,000 in March,

7.3

Coast

and

;

compared

estimate of

—

10.4

States

Apr.
.

1941

Net tons

7,392,911

Quarter—*—™—

May---;

April

* ■

6,521,056

March™.
1st

000

1942,

14.6

Calculated

7,124,922

;

January..
February-

May 30. '49

5.8

Central—

Total

Percent

Period

Atlantic

Central Industrial
West

Estimated Production

weekly
production,

Week Ended

Pacific

—All Companies—
Total

for the week ended June
6,

Major Geographical Divisions— June 6, '42
New England
7.4
Middle

Ago

Cash income from farm mar¬
Institute, in its current weekly report, esti¬
of electricity by the electric light and ketings in April totaled
$973,000,-

3,372,374,000 kwh., which compares with 3,076,323,000 kwh. in
the corresponding period in
1941, a gain of 9.6%. The output for the
week ended May 30,
1942, was estimated to be 3,322,651,000 kwh., an
increase of 12.5% over the
corresponding week in 1941.

average of 98.2% of
In May 1941, when

production

industry of the United States

power

Far Ahead of Year

was

5% higher than in May a year

was

2217

of
the
Government
have been made available to the
War Production Board for re¬

ceiving and processing applica¬
tions for authorization to begin
constructional....
/ / -....

jingles

when

(Based

your

Uuuv

silver is being substituted
large
quantities for copper
sorely needed elsewhere, Thomas

chief engineer and di¬
rector of purchases for the Alumminum Company of America, told
the National Association of Pur¬

annual

118.35

106.39

116.02

118.33

106.56

116.02

117.89

106.74

116.02

117.79

106.74

116.22

117.90

106.56

116.22

117.80
118.08

106.74
106.92

116.41

118.06

106.92

116.41

118.10

106.92

116.22

106.74

116.22

106.21

115.63

118.20
117.80
117.33

Apr.

Mar.

106.21

115.43

117.32

106.21

115.63

Feb.

116.34

106.39

115.63

Jan.

117.08

106.92

116.22

106.92

116.61

106.04

115.43

will

aluminum

plant

the

105.52

115.89

1941

June

added.

(Based

Avge.

1942—

Mr.

Aaa

rate

——

•

—„

109.42-111.62

113.50

110.07

Textiles;

R. R.

2.86

3.00

3.31

4.33

4.02.

3.12

2.98

2.86

3.01

3.32

4.31

4.02

3.12

2.98

ments for

light and power wir¬

the United States Treas¬
ury will loan DPC silver from
the vaults of West Point. It will

for heavy
the

end

be returned

3.38

2.85

3.02

3.31

4.32

4.03

3.13

2.98

3.38

2.86

3.01

3.31

4.32

4.02

3.13

2.98

3.37

2.85

3.02

3.31

4.31

4.02

3.13

2.97

3.37

2.85

3.01

3.31

4.29

4.01

3.12

2.97

—*

—

V
_

3.31

4.29

4.00

3.13

At the
it is to

3.31

4.28

4.00

3.13

2.98

3.35

2.85

2.99

3.30

4.27

3.97

3.12

2.97

2.84

3.00

3.30

4.26

3.96

3.13:

2.97

son

3.35

3.31

4.27

3.96

3.13

2.97

listed

—

3.00

2.84

3.36

2.84

3.00

3.30

4.27

3.96

3.13

2.97

3.30

4.26

3.95'

3.12

2.96

3.34

2.83

2.96

3.30

4.25

3.93

3.13

2.95

3.34

2.84

2.97

3.30

4.26

3.94

3.14

3.35

2.84

2.98

3.30

4.28

3.94

3.15

2.98

3.38

2.87

3.00

3.33

4.32

3.95

3.18

3.01

3.38

2.88

3.01

3.32

4.32

3.95

3.19

3.02

3.01

3.32

4.30

3.95

3.18

2.99

2.87

3.38

2.87

2.99

3.30

4.30

3.95

3.16

2.99

2.97

3.29

4.27

3.92

3.14

2.97

2.88

3.02

3.33

4.37

4.02

3.19

3.02

4.24

3.91

3.12

2.95

1942

Low

1942

High

„

1941

3.42

2.86

2.72

4.47

4.03

3.20

2.03

June

3.35

3.11

3.00

3.14

3.74

5.21

4.65

3.38

June

1940—-

average

prehensive

the

way

complete list of bonds used
llshed In the Issue of Oct. 2, 1941, page 409.
latest

t The

MOODY'S

Railroads

(200)

4.0%

4.4%

2.6%

1.7%

5.6

3.7

2.8

4.3

4.6

6.4

8.7

5.4

5.0

6.7

6.2

1932

7.3

6.3

8.0

7.0

9.3

7.4

of 536 more cadets
United
States
Military

appointment
the

bringing
the corps strength to 2,496 cadets.
The legislation, recommended by
Secretary of War Stimson in order

Academy at West Point,

make

maximum

emergency

of the academy, per¬
mits one additional appointment
for each Senator, Representative,
capacity

use

Delegate in Congress, the Resident
Commissioner of Puerto Rico, the
District
of
Columbia
and
the
Canal Governor.

Panama

The

measure

—

1936

passed the House

May

promise legislation was approved
by the House on May 27 and by
the Senate on May 28.
V

6.9

6.1

5.4

5.6

3.9

4.1

3.7

4.0

—

4.5

3.5

3.3

3.5

4.3

5.5

3.6

3.9

4.8

5.3

6.4

5.0

4.3

4.4

3.9

—

6.3

2.7

3.9

1938

4.0

4.8

—

3.7

5.5

4.4

4.1

4.2

5.4

5.7

4.4

5.3

6.5

6.6

4.7

4.2

6.2

■

5.3

1940

1941

6.3

—-W

—

Month—.

1941
May, 1941
June, 1941

4.2

6.3

6.7

4.8

4.4

6.4

6.5

6.8

4.9

4.3

6.4

6.2

—.

4.3

4.5

6.5

April,

4.5

6.2

6.6

6.4

6.5

4.5

4.2

5.8

1941

March,

4.4

6.1

'V 6.2

5.9

6.4

4.5

4.0

6.4

4.6

3.9

6.0
—

—

July, 1941
August, 1941
September, 1941

5.9

6.0

•

1941
1941
January, 1942 ——
February, 1942
March, 1942
April, 1942

6.1

■V

6.3

6.5

4.6

3.9. V

5.9

6.6

5.0

4.1

6.9

5.2

4.1

6.8

8.2

7.6

7.2

V 7.6

5.3 V

4.5

;;

28—

57,584,410,504

50,277,456,796

92.72

Mar. 31

52,252.053,607

93.73

Apr.

30——

52,518,036,554

94.32

May

29——

f i-

„

7.7

5.6

•'••'•'

4.6

7.7

8.2

8.5

6.0

5.0

7.7

8.3

8.9

6.1

5.3

6.7

7.8

8.2

5.7

4,9

j
r

Y, War Bond Pledge

Drive Starts June 14
Greater New York's

Pledge Campaign, to

War Bond

consist of a

house-to-house canvass by 200,000
''Minute
14

and

Men," will start on June

extend to June 24, during

which time the Treasury
ment

hopes

Depart¬

exceed the city's

of $1,900,000,000 in war
bond pledges.
Prior to the start
of the drive, 2,000.000 letters—one
to every household in the city's
five boroughs—were mailed out
quota

appealing to persons receiving in-

invest

war

6.9

them regularly, month
month, until this war is
won." The letters, preparing New
Yorkers for the visits of the "Min¬
"to

buy

Men," contain the story of the
war bonds as a sound investment.

ute

Vice-President
of the Manufacturers Trust Co.
and Chairman of the Greater New
York War Bond Pledge Campaign,
points out in the letter that no
money
will be collected during
the drive, the Minute Men only
securing pledges to buy war bonds
T.

Madden,

During the week,

price declines

„

WEEKLY

' "•

•

and stamps.

—•

June 6
Monday, June 8
Saturday,

Two

Month

May 9_
June 9____

ago,

Year ago,

1941

High—Sept. 9

Low—Feb.
1942

Jun? 9

weeks ago, May 26

17—

High—April 9

Low—Jan.
■

——

2—.

—

——„

—

—\

L
—

•

The

National'FertHizer AssQclation
t*1935-1939 ^100]VV ^ |

•

Foods

Oils
Cottonseed Oil

Fats and
v

V Cotton
>

135.5

._«/,182.7

Grains Vi—.
-rr

.V'

Metals

6.1

Building materials—.
Chemicals and drugs:

1.3"
.3

Fertilizer.

.3/

Farm

100.0

171.6
:

83.9.

„

All

groups

combined

101.9

V 107.2

' •'•

116:3

;

104 4

103.4

•151.6

V" 117.1

-.104,7 ■•*

-,118.7

118,5.. VU8.7,n

115.3

V 115.3

115.3

120.7 -Vm 105.0 •'*

104.1

119.2

«-127.9

101.1
'

5,127,5 •>' ."127.7

io4.i

104.1

'"99.3

127.9

107.7

.[
4V

1926-1928 base were:-June 6,-1942,-99.3; May 30,-99.5; ?Junei,7r-1941,
Revised.,',.
VV-- - ,V;V.V
■ .«>• - -■ -

^Indexes on
r

:
...

machinery

v.i32.3
«

120.7

'v 120.7>:.

materials-

Fertilizers

f
-r

113.8 ->-•.<95.3^

y V: 149.1;..>128.5,,

-——r—

122.0 >;

/'V 125.4

.148,2^ > ?.-148.9
104.4.
104.4
151.6"': 151.7

8.2

-190.5

r 127,8 ••'.

127.6

136.8 Vv 103.9

119.5 "•

119.7

>•'; 102.5 V:

VVllO.8

;. 359.3

■:

132.2

332,3

—

7.1
1

138.7

——

•10.8'
-

>a261

187,5

..'^M11.6>,4 .114.1

1941

->1942
...

136.5

Fuels

"17.3

232.2
198.1
219.9

220.0

.V«V*25,6V 125.6
J 138.7
137.0
;—
^1^8.4.. >: 163.0
———.
...

.—

1942

23.0

Month 'V rvYear y '
Woek-: r<Ago i« Ago
May 30
May 2 * June 7

June 6

.Group

'
,•...v

Preceding

Week

228.6
229.7
229.2
227.6
227.1
227.8
231.7

234.0

WHOLESALE-COMMODITY .PRICE INDEX

•

■

„•

-vu '

outnumbered price• advances 18•

Latest

June 4

Index tower

W.t

; V; ; Compiled by The
,

25.3

Wednesday, June 3

}

and 107.7 a year ago.

——tV* 228.8

June 2

Friday, June 5

Tuesday,

95.63
95.64

preceding week prices of 13 commodities declined' and 10»
advanced;; in the setond preceding week there were 12 advances and

Livestock

Thursday,

95.13
95.97

8; in the

Commodity Index
Tuesday,

>95.24

price index was mainly
all-commodity ,iridex> .. While ;
livestock quotations were only slightly, higher, grains.sagged to.the
lowest point reached since December, 1941, and cotton dropped to the,
March levels. A recession in the textile index was due to lower
prices for raw cotton.
The fertilizer materials index was slightly
lower, due to declining prices for cottonseed meal and fish scrap..
Lower cattle feed and linseed meal quotations were responsible' for ^
a drop in the miscellaneous commodity price index. The building ma-.
terials index was slightly lower.
The fuel index moved to higher.
levels last week as a result of an upturn in the price of gasoline.'
The food index remained unchanged, with .4 items.included in. the
group advancing aqd 5 declining.
:. * •>

Moody's Daily

after

John

v $

Each Group,

bonds—

58,140,382,211V
57.923.553.616
59,257,509,674 V

responsible -for the downturn in the

Total Index.'

c,VVvVVVVV' .V'VrVV

sharp decline in the farm products

The

'■1X1.11

;V.. ■'V< 7.8,

preceding week, 127.9 a month ago,

Bears to the

comes

1942—

,»

7.4

;

wholesale commodity price

7.2

Vr •'

;

12 declines.

7.3
7.1

4.5

5.4

7.2

—,——

56,261,398,371

Feb,

to-

6.3

6.8

7.4

31——

93.05

5.9

7.3

—

■•;

5.8

6.5

—

1942

6.1

6.9 r

5.9

November,

December,

May.

6.0
y.

6.4

—

1941

5.9

4.2

6.0

6.2

1941

February,

6.2

1941

January,

.4.4

6.9

3.5

1937

1939

2.7
3.0

3.4

1935

October,

13 and the Senate, in
amended form, on May 19. Com¬
on

3.7
3.4

1934

Jan.

50,374,446,095

•

3.5%.

4.9

1933

93.84

Association's report went on to say:

Yield

3.2%'

1931

50,831,283,315

index compiled by The
National Fertilizer Association and made public on June 8, declined
for the third consecutive week.
In the week ended June 6, 1942, this
index stood at. 127.5% of the 1935-39 average compared with 127.7 in.

(10)

(15)

1930

signed

Insurance

Banks

(25)

Appointing

Roosevelt

31———

the

More West Point Cadets
legislation authorizing the

29_

Dec.

The weekly

duK

1929

—

31—

Nov,

COMMON STOCKS

Utilities

(25)

(125)

95.04
94.86
94.74

55,106,635,894
95.25
54,812,793,945
94.80
55,033,616,312 V 94.50

Oct.

93.58

Ferliliier Association Coitimodity

Average
Industrials

94.80

one

In computing these Indexes was

AVERAGE YIELD ON 200

WEIGHTED

92.08V

Mar.

Moody's Common Slock Yields

substantial¬

Sept. 30

July

92.84

bond market.

the true picture of the

being

Aug. 30

91.33

50,755,887,399

Apr.

"typical" bond (3%fl
the average level or th«
Illustrate in a more eom
relative levels and the relative movement of yield averages, tho lat¬

are computed from average yields on the basis of
maturing in 26 years) and do not purport to show either
movement of actual price quotations.
They merely serve to

These prices

coupon,

90.86

94.22
N

53,259,696,637
53,216,867,646
53,418,055,935

90.14

50,438,409,964

Feb.

3.23

2 Years ago

53,237,234,699

1941—:

2.98

3.77

1941

3.96

June 30

30—

Jan.

4.32

52,321,710,056

2.83

3.32

Dec.

3.08

3.89

2.96

May

87.87 '

4.24

2.79

Price
$

92$48

NOV.

3.39

2.85

Average

Oct.

3.19

3.06

3.25

'-i:;

3.28

2.95

2.82

3.34

1941

Year—•

President

8i.05

Market Value

1941—

;

48,601,638,211
49,238,728,732
49,643,200,867

Sept. 30—

2.84

ly completed, he said.

June 4

53.47

•

47,665,777,410

—

3.39

pound left for civilian use.
own expansion, involving

FDR Authorizes

3.37

Alcoa's

$250,000,000, has been

29_

3.34

War

World

31—

June

produced at its peak in
I, there will still be

nation

not

May

July

ter

59,257,509,674

Price

49,611,937,544
46,936,861,020

Apr.

new

95.64

95.63

52.44

Jan.

although each of several
plants will produce
more1 aluminum than the entire
the

77.14 >

80.61

Average
Market Value

Feb.

said that

102.47

77.99

the Exchange:

1940-

Aug. 31-

ment and the aluminum company,

>58.22

31,252,500

.The following tabid, compiled by us, gives a- two-year compariof the total market value and the total average price of bonds

2.95

•

105,852.556

1,174,247,263
698,171,779

—

2.97

2.83

Low

to the Treasury.

3.35
3.34

High

54.46

2.97

3.01

106.49
"59.59

87,704,945'

13,225,442,340
1,197,259.719
701,415,751

T—

All listed bonds

3.01

pansion program which includes
35 major projects for the govern¬

government—;
Foreign companies
r.

97.82

100,243,275

103.43

13,298,937,720

——

105.91.

1,194,913,134
"V -

57,923,553,616

companies

Foreign

2.85

vast aluminum war ex¬

2.85

director of construc¬

Mr. Jolly,

Total

98.95

3,259,664,000

-57.36

31,545,000

3.37

if.

Mar.

84,495,266

•

io4.4i

95.77

V 99,012,100

26,266,730

106.21

utilities—_—

100.01

139,565,967

105.79

companies oper. abroad—

3.36

■

1 Year ago

tion Of

■

Apr.

Present plans
busbar.

2.99

of about 13,000

emergency

3.13

3,261,225,966
98,139,642

1,191,843,115

(operating)(holding);— V

548,159,660

118.15

>VvV:.:

■

>Miscellaneous businesses-—--—

by the copper
and shipped to us

tons

3.13

22_——

call for the use

4.02
4.02

May

gram,

companies
ready to install.

4.32
4.32

for these days of heavy mil¬
itary demand. On the new pro¬

fabricated

3.32
3.32

per

3.01

ing, motors and other uses, this
becomes entirely too much cop¬

be.

2.86
2.86

require¬

the

add

3.38

bar.

Gas and electric

Communications
Miscellaneous

3.38

—

electric

Gas and

2.99

government-owned me¬
tal-producing
plants
require
about 36,000 tons of copper bus¬
-The

;

98.50

•83.82

97.65

39,782,813

99.08

11,299,920
17,684.3 L7

*
-

^100.20

25,923,310
—

Utilities:.

3.38

;■

VV17,585,703

63.46

—

Tobacco

Indus

P. U.

72,800,765

97.94

97.00

Steel, iron and coke——

71,963,790
1 '11,127,840

building and operating— :
:
Shipping services

Ship

106.21 V 107.80

78.47..,'V

V 12,000,749

merchandising

Rubber

3.38

June

Jolly also said:

Retail

Baa

•

Corporate by Groups

86.78

Corporate by Ratings

'■

■9

Corpo¬

Daily

•

96.69

AVERAGESt
Individual Closing Prices) 1

on,

—•

YIELD

BOND

MOODY'S

•-

•

95.62

79.72

100.16

110.52

113.12

99.68

113.12

1940-

Average

area,

2 Years ago
June

listed on
$57,923,_

97.31
97.47
95.62
97.78

91.34

107.27

113.89

117.20

106.74

118.86

1941_

New GYork

89.23

106.04

112.00

116.22

92.06
92.20
92.35
92.20
91.91
91.34
91.34
91.62
91.62
92.06
92.50
90.63
92.50

the

553,616.
•
110.88 113.50
In the following table listed bonds are classified by Govern¬
110.88 113.50
110.70 113.51 mental and industrial groups with the aggregate market value and
110.70 113.31
110.70 113.50 average price for each:
Apr. 30, 1942
May 29. 1942110.70 113.50
Average
Average
110.70 113.70
Price
Market Value
Price
Group—
Market Value
110.88 113.70
$
$
$
$
110.70 113.70
110.70 113.50 U. S. Government (incl. N. Y.
44,133,391,864
105.82
105.76
42,752,196,854
State, Cities, etc.)
110.88 113.70
110.70 113.70 U. S. companies:
99.62
35,507,482
99.43
34,756,820
Amusements
110.70 113.70
103,23
13,469,063
103.16
1
13,461,107
Automobile
110.70 113.70
92.94
17,215,735
93.70
17,357,214
110.88 113.89 | Building
99.50
100.50
14,925,000
15,075,000
Business and office equipment110.70 114.08
98.73 V
75,179,563
97.84
Chemical
:
74,504,750 '
110.52 114.08
102.71
5 35,950,000
103.79 •"
Electrical equipment
36,325,000
110.34 113.50
99.39
.57,418,613
99.23
j
Financial
h.
v
58,231.610
109.79 112.93
103.83
222,058.168
104.26
Food
207,846.047
■;
L109.60 112.75
68.10
T
9,353,100
67,97
Land and realty
>r:
9,335,053 109.79 ' 113.31
99.13 ::
i,>4 45,179,879
45.118,317 • '-98.99
110.15 113.31 V Machinery and metals
••56.94
;? 90,141,762
57.66 f..
v,:..
92,306,155
110.52 113.70 f Mining (excluding iron)99.90
50,732,342
100.15
50,863,746
Paper and publishing
V—
110.88 114.08
101.78
'
586,345,656
102.2* V
596.517.259
Petroleum
•_
109.60 112.75
.6tf57
63.35
V *6,364,830,543
Railroad
6,549,969,131
-112.56 ~ 116.4)
727,660
'77.7,1-}'

1 Year ago

the

^108.52 "'118.60

120.05

1941

Low

country,

construction

under

115.90

1942

High

in in

come

118.41

1942

High
"Low

operation,

will

now

116.02
116.02

of i silver

use

106.39

118.30

Mr. Jolly said.
large quantities
be
the
largest

future,
to

118.33

the

already

and three others
near

115.82

——

Mr.

speed.
Although con¬
tracts were let only last August,
two of the DPC metal-producing

The-first

118.41

.106.21

before

record

the

116.02

possible the construction
by this company of 15 large plants
for the Defense Plant Corporation

are

115.82

106.21

106.39

making

plants

106.21

Jolly, a former President of the
Association, described the stream¬
lined methods, standardization of
orders and equipment, and sub¬
stitution of materials which are

115.82

106.21

convention,

Speaking

26.

May

95.77
95.77
95.77
95.62
95.77
95.77
95.92
96.07
96.07
96.54
96.69
96.69
96.69
96.85
97.16
97,00
97.00
96.85
96.85
96.85
96.85

112.93

May

95.77

91.48
91.34
91.34
91.34
91.34
91.48
91.77
91.77
91.91
92.06
92.20
92.06

107.27
112.93
107.27
112.93
107.27
112.75
107.44
112.93
107.44
112.75
107.44
112.93
107.44
112.93
107.44
112.93
107.44
113.31
107.62
113.12
107.62
113.12
107.44
113.12
107.62 '
113.70
107.62
113.89
107.62
113.70" 107.62 113.50
107.62
113.12
107.09
112.93
107.27
112.93
107.27
113.31
107.62
113.70
107.80
114.08
107.98
112.75
107.09
116.02
109.60

in New York on

91.19

113.12

115.82

118.39

——

107.44

115.82

106.21

418.38

Baa

106.21

118.38

1,163 bond .issues aggregating $60,571,662,883 par value
Exchange on April 30 with a total market value of

Corporate bp Groups •
R.R.
P.V.
Indus

Aa
Aa

Aaa

rate *

113.37

———

D, 'Jolly,

Yields)

Average

118.39

—

June

aggregating

$61,956,472,933 par value listed on the New York Stock Exchange
with a total market value of $59,257,509,674.
This compares with

Corporate by Ratings *

June 8 that as of

there were 1,166 bond issues

the close of business May 29,

Avge.

Corpo-

Bonds

Averages

the war,

NAPA's

U. S.

Govt.

1942—

pocket, but in building plants to
make aluminum for planes to win

chasing Agents

PRICESt

announced

The New York Stock Exchange

and bond yield averages are

MOODY'S BOND

still .worth ten pen¬

dime

nies

Market Value Of Bonds On N. Y. Stock Exchange

Bond Yield Averages

Moody's Bond Prices And
Treasury Silver For
Moody's computed bond prices
Aluminum War Plants given in the following tables:

Thursday, June 11,1942

CHRONICLE.1

& FINANCIAL

THE COMMERCIAL

2218

Volume
^

1 jo

i i umber

4080 ;v

^(Tightens Dimout Rules ^
New

and

Automobile

dimout

severe

THE COMMERCIAL & FINANCIAL CHRONICLE

Financing Down 7# In Month

Regulations for the, Second Corps

Diversified

Area in order to prevent silhouet¬

ting of ships at

sea

issued

were

Finaaciag Also Lo»er

1942, to April 1942, in the number
oi new passenger cars financed
by sales finance companies was an¬
nounced on June 3 by J. C.
Capt, Director of the Census. The dollar
volume of paper acquired in the
financing of new passenger cars de¬

Counties,

Westchester

County

counties

commercial cars, the number financed and the
volume of paper acquired decreased 30% and 31%
respectively. Used

part
of
and * coastal

creased 9%.

of
New Jersey and Delaware.
The rules provide that all lights
normally visible from the sea shall
be dimmed or shaded in such a

that

manner

During April 1942, retail automotive outstandings of sales finance
companies decreased 9%, which is identical to the percentage de¬
crease during the previous month..; ■

they

than one mile
Provision is also

from the shore.
made that

exterior

throughout the
lights used for

The

all

area

and

skylights

All

under

must be screened

windows
the

order

shaded

prevent .direct rays of; light
escaping.
The regulations also
;^an all illuminated exterior ad¬
vertising ' signs.? R
•
The

first

regulations

Second Corps Area

for

were

the

referred

recorded

April 30, page
w;" i

Sales Vetoed

ByiTireasury

connection, with

the

volunteer

asr

coercion in promoting

the. sale of War Savings Bonds
and Stamps will tend to underpublic

sincerity

down 6%.

were

fort.

confidence

therefore

; Treasury policy for

v*.

Sales—^Finance Companies

AUTOMOTIVE

the

Volume

Paper Acquired

AND

ber

such

300,000
tons,
distinct progress in

efforts

between

ship construction. (These
tistics

"Steel,"

vital

"Plate

markets

rolled

Americans.)

vast

though
affords

Class of Paper-

Ratio

Total

wholesale

Outstanding

of paper

balances

acquired to

Apr. 30,

outstand'g

companies*

balances!-

$29,847,719

$29,385,435

$877,982,918

18,493,114

18,416,680

358,345,499

1,422,379

1,340.170
14,325,449

6,491,522
257,050,978

14,616,574

automotive

retail

1,092,910

9,414,114

motive

Total

Industrial,

per¬

consum.

goods

and

for. many months.
"While

cannot

fications

quire

revision of Pri¬
Regulation No. 3 will re¬
than 10,000 companies,

contracts, to operate
Requirements
It is announced

war

under

Production

Plan after July 1.

that all but

few classes of

com- :

seems

panies needing

than $5,000
worth of metal for third quarter
must apply for priority assistance
under

business is frozen because of
plate
while sheet bookings of

being

are

contracts

many cases

including most of those handling
large

PRP

"Pig

demand

less

A-l-a

"Forthcoming
orities

highly rated sheet

some

against

volume, in
exceeding shipments.

to
call for War Production Board ac¬
tion in reallocating such orders.

Already

have, de¬

receiving speci¬

are

in heavier

ex¬

possibly

This situation

orders

new

clined, mills

result of priorities,

steelmakers,

has

rolled

before

iron

been

time

the

heaviest

i?' vY>;«

July 1.

distribution

June

for

some

obtain

consumers

"Interest in the new National war work. Pig iron output is be¬
advanced
steadily,
many
Emergency steel is growing rap¬ ing
stacks making new records montn
idly,
and
manufacturers
have
started substantial production of by month. •„ this

steel to

new

orders

from

meet

customers

"Flood of scrap is sufficient in
nearly all steelmaking districts to
support the high rate of produc¬

increasing
who

have

been
having considerable diffi¬
culty getting the old nickel alloy

tion and also to provide reserves.
In some cases dealers are receiv¬

steels.
The

American

Institute

Iron

June

and

ing

Steel

than

with

announced

labor

they

forces

can

prepare

available.1-It is

that

telegraphic- reports which it being allowed to accumulate 1 for
had received indicated that the later;
preparation.
No large re¬
operating rate of steel companies serves have yet been built but the
having 91% of the steel capacity situation is much more comfort¬
able than for many months.

Board's
ment

"Attainment of War Production

8, compared with 99.3% one
ago, 99.6% one month ago
and 98.6% one year
ago. This rep¬
resents no change from the
pre¬
ceding week. The operating rate

goal

iron

indicated

ore

move¬

by the

record

tonnage moved in May, 12,677,356
gross
tons, which was 1,596,157
tons, or 14.4%, over May, 194L
for the week beginning June 8 is For the season to June 1 a
total
equivalent to 1,686,700 tons of of 21,327,064 tons was shipped,
steel
ingots and castings, com¬ 3,291,072 tons, 18.25%, over the
pared to 1,686,700 tons one week same period last year.
Each of

balancest

1,691,800 tons
1,591,300 tons

ago,
and

one

month ago,

the three months since

one

year ago.

opened has set

navigation

record."

farm

commercial

equipment

acting in behalf of the War
."Savings .Campaign,^ has thus far
been
negligible, the Secretary's

produced.

i,—

retail—other

increase,
although it

ton¬
This

books are crowded with suffi¬
cient business to keep them
busy

tonnage. Sheet tonnage on some
strip mill order books continues
to

of sheet mill

expense

be¬

$64,560,644 $1,509,285,031

automotive

1942+

Total wholesale—other than auto¬

num¬

the

relief

week

companies

Total

tent

some

for* larger
periods.

longer

of the industry will be 99.3% of
capacity for the week beginning

Outstanding

reporting v
outstanding

By all

plates has been made to

usually
and

nages

peace¬

quantities

are

ing received in smaller number,

production from contin¬

strip mills, which in

June 8 stated in part:

"Current orders for steel

sta¬

are

of Cleveland,
in i,ts
of the iron and steel

summary

bring together the gap
ship sinkings and new

June

Balances

acquired during
April, 1942
By all

anyone con-

over-zealous

FINANCING

and

Dollar volume of paper

against

applications.
Although stating that the

DIVERSIFIED

During April 1942
April 30, 1942 ,

Staff,
or
acting
under
its
auspices, to use intimidation or
threats of any kind to induce
people to sign pledges, payroll
authorization
cards, or - Bond

;

not

are

nected with the War Savings

•

exceeded

representing

urgency
elsewhere.

are

diiririg April 1942 to the out¬

automotive? "

of. our intention ? to
make this a truly voluntary /ef-

;
:

outstanding

price fluctuations.
The
comparable to those published for previous months,
since monthly reports are not received each month from identical
sales finance companies.
All indexes for April were obtained by cal¬
culating the percent changes from March to April, as shown by re¬
ports for March and for April from sales finance companies reporting
comparable data, arid by linking these percentages to the indexes
previously derived for March, 1942.

mine

April

data

people and that
."'this goodwill is a priceless asset."
iThe Secretary further said:.,.
Every case of intimidation,

equipment

reported without adjustment-for seasonal

American

Retail

These data

•

sistants, the Secretary pointed out
'that the ;current Savings Cam¬
paign enjoys the confidence of

threat

April.

Savings should be used to indicate the total amount of
financing by all sales
Administrators; and finance companies in the United States. 'The data are
published as

State

Rheir thousands of

the

during

on the current trends of sales
financing for the month
based on reports for March and for April from 282 sales
finance^ ;c6mii&riie^i^
Neither^ the : dollar wolumes (nor: the indexes

War

memorandum sent to War
•:

reductions

wholesale—other than

Savings-Bonds and
Stamps Quota, Campaign. k In; a

-Staff

In wholesale

standing balances as of April 30, 1942- are 3% for retail automotive,
5% for wholesale automotive,; 6% for retail-other consumers' goods,
12%;for, industrial,: commercial, and' farm equipment, arid 21%' for

genthaii; on?June, 1 took- steps jto
intercept any over ^zealous sales
methods

slight

only

Theiratios of the paper acquired

•

R ' Secretary-of" the Treasury Mpr?

•current

mat monih for the Maritime Com-^

mission

balances for other consumers' goods were reduced 3% for the fourth
successive month, while the balances for industrial, commercial, and

Over-Zealous War Bond
^

rising total of ship sinkings off the East Coast, says "The
Age," in its issue of today (June 11), further adding:
"May
plate shipments totaled 1,012,194 tons and deliveries to shipyards in

time

equipment decreased 32%, 10% and 9% respectively.

farm

•

the

The outstanding balances for

year.

40%

production in the United States finally has
topped
for a single
month, an accomplishment which
recording in view of the great demand for ship plates
mark

Iron

uous

cars

diversified financing the volume of paper acquired by sales finance
companies was down 41% from March to April of this year.
Diversified outstanding balances held by sales finance companies

to in these columns

?i7io.

April of this

companies

and

for used

new

2219

■

plate

is well worth

financings decreased 5% during April, marking steel for automobiles, contributed
the beginning of the downward swing from the high in
February.
heavily to May plate output, the
In retail diversified financing, the volume of?
paper acquired by volume from such mills rising to
rales finance companies decreased in all cases except for residential
425,211 tons compared with 337,building repair and modernization, which increased 7%, in the period 519 tons in
April. Further con¬
from March to April of 1942.
The financing of radios, pianos, and versions of
strip mills under way
other musical instruments decreased 49%, closely followed by a drop will
help push plate production to
of 47% in the financing of refrigerators.
The financing of household well above the million-ton
mark.
appliances," of furniture, and of industrial, commercial, and farm This
unprecedented
output
of

be reduced in volume and
number of wattage so that direct
rays shall not shine at an angle
,

by sales finance

Steel

the million-ton

wholesale automotive

ures

horizontal.

acquired

paper

financing decreased 53% for

from March to

cars

traffic

volume

wholesale

guidance and for security meas¬

above

new

passenger cars financing decreased 18% for the number of cars and
23% for the dollar volume, while used commercial car
financing de¬
creased 21% and 16% respectively.

will not be
Visible under any condition at a
distance

For

Output Unchanged At 99,3% of Capacity—
More Strip Mills Being Converted—Orders Off

A decrease of 7% from March

;;v

Steel

by Major Gen. T. A.
Terry, commanding the area. The
regulations apply to all of New
York City, Suffolk and Nassau

June

1,108.264

—

sons,

memorandum

tinued

declared
of

success

that

the

Total
*Data

therefore,

must

based

$65,488,050

tData

are based on figures from sales finance companies able to
report both their
acquired and their outstanding balances. v

paper
"

JRatios obtained by dividing

tical group

guard
against doing anything by word or
action that will endanger or un¬
dermine it."
??''

of firms.

,v;

AUTOMOTIVE

Financed

Cars

acquired by outstanding balances for

and

Paper

Class of Paper—

3*4%

Acquired

During

April,

1942

Volume

cars

Mortgage Interest Rate
farm

Used

May 26 and sent

commercial

Total

Federal farm agencies was passed

by the House

passenger

Used

•

mortgages held by

proval
several
•farm

should

suggested
be

even

that

lower

the

% of

total

Dollars

100

+$29,546,104

76,387

.*'■■■

cars

their

those
from

100

reported

and

in column

sales

fiance

1,416,085

+$17,306,668
13,272,672

that

could not

This

•1933

law

but

4%%

first

was

then

passed

provided

interest

rate

4,033,996

tThese

amounts

the inclusion

provide

breakdown
less

are

that

table

for

Furniture

loans

than

data

•

household

Other

through the Federal Land Banks

Residential
•or

•

through

the

Federal

Farm

Mortgage Corp. In 1935 the rate
•was

lowered

was

continued

Zxk%.
in

1937

This

rate

and

1938

Total

law

years

wholesale—other

with

renewed

the

for

President's

proval.

two
ap¬

than

Industrial, commercial,
Total

diversified
are

their

retail

based

inclusion

provide

breakdown.

that

——-4——

financing
reports

table

of
•

data

consumers'
from

the

tThis

work

amount

finance

the

less

companies

new

that

breakdown
than

due

could

classified

12,336,000

47,398,000

145,433,000

June 4.1942
$274,971,000

construction

10,509,000

248.611R00

groups,

are: waterworks, $2,678,000;
sewerage, $3,bridges, $1,020,000; industrial buildings. $11,371,000; com¬
buildings; $4,079,000; public buildings, $179,207,000; earth¬

and

New

is 58%

100

Financing"

—————

157,769,000

drainage, $25,749,000;

streets

and

roads,

$11,529,000;

unclassified construction, $36,269,000.

15,851,000
259,120,000

99,398,000

52,000,000

municipal———

;

mercial

and Diversified

sales

and

$8,643,424

5,458,000

construction

State

:?■7

1,422,379

$163,227,000

33,172,000

each class of construction

goods..

Public

-?• May 28.1942

$132,570,000

construction

069,000;

1,108,264

"Automotive

Private

+$6,112,781

June 5, 1941

3,557,649
■

—2—

—__—:

2
;V

are:

construction

H407,013

from sales finance companies providing

other

of table

184,011

1,104,491-

goods——.

automotive

Construction volumes for the 1941 week, last
week, and the cur¬

;. 591,825

:
modernization————

and farm equipment

financing

reported in column

t
.

~r;

L—'•

——

consumers'

*Data
was

repair and

retail

retail-mother

Total

Presidential veto and in 1940

over

the

appliances.

bu'lding

Miscellaneous

total

$267,792

—

(gas. and electric!

gains over last week are
in waterworks, sewerage,
industrial, commercial and public buildings, earthwork and drainage, and streets and roads. Increases over
the 1941 week are in waterworks, sewerage, industrial and
public
buildings, and earthwork and drainage.
Subtotals for the week in

Refrigerators

brings the 1942 total to $4,211,increase of 77% over the volume for the corresponding
period in 1941.
Private construction, $316,612,000, is 53%
under last year, but public construction is 127%
higher as a result
of the 222% increase in federal work*
327,000,

23-week

1942

Radio, television sets, pianos & other musical instruments
.

year ago.

Federal

Dollar volume

goods:

third

The current week's construction

Total

breakdown.

'K.v:''V

consumers'

the

Paper Acquired During April

Class of Paper—
Retail—other

week

rent week

% Of

•;

higher than last week, and 108%
corresponding 1941 week. Public construc¬
highest peak ever attained, and is 64% and
161% higher, respectively, than a week ago and a year ago.
Private
work gains 190% over the
preceding week, but is 52% below the
reaches

——,

du? to

for the week totals $274,971,000,
highest value reported for the current year, and the third
record as reported by "Engineering News-Record" on June

The near-record volume is 68%

100

-li.

- <

DIVERSIFIED FINANCING *.

Volume of

•

financing.

1 of above table,

than

automotive

companies

•

776,167

23,731,609

reports^from: sales finance companies providing

wholesale

3,622,243

-----

automotive^——

highest
4.

total

J—_i__—' -3,492"

cars

based

are

v.718

67,478

(passenger and commercial)—*
(passenger and commercial)——

retail

the

4,699

J-

car8_-_i.^i._i_-_-_--------

Representatives from the

States

rate

cars

•Data

voice vote after

came on a

wholesale

New
Used

the Senate. The rate, in effect
since 1935, expires on July 1. Ap¬

passenger cars
commercial

New

^Legislation "'extending ,'foR; aq-'
rate

automotive

retail

Number

New

other two years the 3 V2 % interest

•

the second

tion

FINANCING *

Volume

Engineering construction volume

above the volume for the

Number of

Total

iden¬

;
'

Number

paper

•

% of

House-Extends

Construction $274,971,000 For Week

not

de¬

pended upon a democratic and
voluntary program and that "we
•

are

financings.

reports from all sales finance companies regardless of whether
they could supply a breakdown and whether or not they could report their
outstanding balances.
or

con¬

drive

sales

that

capital for construction
up

last year.

sales, and $6,000 in RFC loans for public improvements.
construction

New

the
not

for the week, $4,484,000,
The current week's
of $4,478,000 in State and municipal bond
purposes

below the total for the week

financing is made

307,000,
23-week

gain of
period last

and

-i

financing for the year to date totals $6,823,108% over the $3,282,484,000 reported for the

year.

THE COMMERCIAL & FINANCIAL CHRONICLE

2220

Market Value Of Stocks On New York

;

Stock Exchange Higher On May 29

for the four weeks
i
of the month, according to "Engineering News-Record" on June 3.
# 'The New York Stock Exchange announced on June 3 that as of
The May volume averaged $261,143,000 for each of the four weeks,, a
37% increase over the previous peak average reported for the five
the close of business May 29, there were 1,242 stock issues aggre¬
gating 1,469,388,445 shares listed on the Exchange, with a total market weeks of July, 1941, a gain of 45% over the five-week April, 1942,
value of $32,913,725,225. This compares with 1,241 stock issues, aggre¬ average, and 219% above the average for the five weeks of May,
gating 1,469,204,098 shares, with a total market value of $31,449,206,Construction volumes for May, 1941; last month and the current
904 on April 30 and with 1,234 stock issues, aggregating 1,463,343,927
shares, listed on the Stock Exchange on May 31, 1941, with a total month are:
7*10/:

(five weeks)

In making public the figures the Exchange said:
As of the close of business May 29, New York Stock

rr.-j

their total market value.

: *.

ion each:

•

public buildings climbed 193%.

4,359,945,368

;

1,020,395,498

25.74

494.545.480

37.74

594,427,010

11.78

2,001,922,994

21.49

32,574,446

19.45

23.01

20.69.
2.93

...

20.13

16.61

3,168,792,104 *

16.49

2.588,684,975

22.95

23.06

1,534,763,933

20.93

lower.,

28.70

274,673,885

25.94

85,944,410
7', 8,096,922
1,817,356,333

18.03

89,025,334

18.68

4.41

8,023,105

4.37

,•

14.53 *

1,182,986,086
322,634,165

•

1,878,946,380

309,985,053

22.10

294,943,029

37.01

885,221,929

1,449,588,448

15.69

1,370,059,697

592,980,295

556,963,986

5.81

2,607,642,149
69,114,906
429,544,670
688,278,918

62.36

2,416,575,155

57.79

9.43

64,928,391

8.86

13.05

427,442,576

12.98

17.00

639,961.594

15.81

94,474,556

16.09

90,735,242

15.46

31,449,206,904

"Miscellanepus

abroad

S. companies oper.

Foreign companies—.
Miscellaneous businesses

Stocks—

22.40;.

32,913,725,225

—

give below a two-year compilation of the total market value
price of stocks listed on the Exchange:
Average
(~ •
7%"?r7+ ■ Average
Market Value

Price

"31.96

46,058,132,499

—.

46,769,244,271
36,546,583,208
.38,775,241,138

i-,

31—

—

Sept; 30J—i—
Nov.

30~_

1941—

•

' 36,228,397,999
' /

Mar.

31—-,—

32,844,183,750

27.08 "

Apr.

31,449,206,904

.21.41

27.24

Mav

30—
29——

32,913.725.225

22.40

31————

Feb.. 28—

31—

27.68

—

35,234,173,432

40,279,504,457

Febd 28—: 39,398,228,749

-39,696,269,155

^8^31-—---—

•,

"•

Received

Period
v

156,745

Exchange Commission

the

including

debenture

$100,000,000

%% 165,081

140,125

21_7_1_

157,908

144,061

4 ? 166,130
" " '169,444
■
: 168,394

Apr.

American

.Although the volume of securities resigstered by issuers for sale
during April was low, the net proceeds to be applied to new money
purposes—$60,313,000—were larger than the monthly average for any
calendar year since 1936.
Issuers proposed to use $53,226,000 for ad¬
ditional working capital, while $7,088,000 was to be used to purchase
new
plant and equipment.
Retirement of indebtedness accounted
for $46,744,000, and purchase of securities took $1,334,000,
Securities to be underwritten aggregated: $102,750,000, or 92%
of all securities registered for the account of issuers for sale.
Issuers

orders.

1.9%,

rate

compared

with ^5.1%

EFFECTIVE.

REGISTRATIONS^UNDER

•

7" /••%.+"*" -r.
'7"" •'
.ijj tod'.'- *
^
-«•
c Total Securities
of Security

Face

{lamt... certificates
stock

Preferred
'Common

interest,

15,572,711

5.870.000

4.0

31.4:

-8.3;

Detroit

5,288", 336

-14,822,711 12.2'20.6

4.7

12.1'

Pacific

488,700

(vJL
jctfs. & ctfs. of dep.)

0.4
2.6
'1—11.1

■ ■■

J' -f;

'Son

will remain with the Depart-

ment for the/ time

order/,

being, however,

complete
certain
studies now being conducted by
the Department/ Two members of
the 7 Department's,. staff will
be
promoted effective June 1st; N. P.
Parkinson, of Decatur,,* who for
the past year has been serving as
Assistant" Director 'of - Insurance,
has
been./ advanced /to become
Chief Deputy ta Director " Jonest
and ;

'Clarencer; M.': Kinney,'

7+7 7%:

•-+I7.-.T
+ 24 77
—

"+ 20 ""

+15

•

*+11 ~

Coast___

+ 17

+ 13

Texas
Others_____.

+ 16 '

+ .7
+

+ 2a "

+ 20 "

+ 16

• '

+ 10

+ 18

6":

+ 19

+ 18

7 7. 58

•

0.0

-""

_.+J.7.

J-7
.„-v

•

...

V 77 •+

<•

81-

* •7 77 ;, 7.

-70

...70

15 -$123,058,726 $121,181,-411 100.0:100.0 $111,647,036 100.0 .100H

\r.-+

President:, Roosevelt, has -signed

uly; 1+ 1943^:the authority,6 Of /

sioner'to

riiiake loans

On behalf of

ilie* Federalji^prtgaget Coi;^,
poratipn-//'! The.

n author ity-^

have- CXpiredonr J One

would

1 "9*-t

+.:$

; 9'11

•Date_^_

ii.

";77f-- *> X

j
v

ther FederEdrLand'Barik'1 Commis¬

+10-.
+

"■■MMpiii

the legislation; which extends un-7

/-+• s
—

■'

■ ' +
m:+11%" -y+' 8%; ;' + 19^-71% v ;69% %- + . -5%« ;/?.•) /"FirtO^Cong^^IbhM
7%%--+ 6%' '■ +; 8% '■ + 6%" '."i".+1£%- '"<70% ;7."69%;'» •"+' 4^ I the :
measure. .was> noted m /these;
?The term "rates" wherever used refers :tp the average sales-per occupied room
columns: June7% -page 211 T.' r/ ? 7 * \
and not to scheduled rates. •Rooms and restaurant only.

Total "

Year

7,315

■,

+ 10

7 88
_

Deer.:

:7.+

•

•'

•

Mtg. Loan Power Extended /

"•/

9 : ;./

+ 737

+ 10

+ 35

+ 12

+ "4t

68%

+19..;+. .80,+

71%.

+ 30
,

,.577

1941

+14%.,/..
'"'+28:7+:

+.17..:.:

1942

Beverages

+ 14

H^preeh^ OffectiVorJuiie+

tROOlTl
Occupancy "
Rate
!
Apr., r Apr., Increase; :/

Total

Food

7."

%
'

....

3.2

0.4

488,700

years; // is
announced . by
Director Paul ;F. Jones. Mr. Nelv.

'
1941

COMPARED WITH APRIL,

Rooms Restaurant

....

Cleveland

All

_——

———..

„

New. York City.i..+, 8 %
Chicago
+' 19
Philadelphia
4-2G7"
Washington
6

5.3

8-11

U.l

past/

eight

■

rights—

v.Gi&nd, total

89.6.

1942,

APRIL,
_

.'Total

5.870,000

•Substitute, seeur;
«

-Sales, Increase or Decrease-

36.91

beneficial

etc.
or

-•'•
.

„

1941

1942

6.4

—

A990.000

Warrants

Amount

parti-»

of'
,

1941.-

$100,000,000 $100,poo,000 82.5 2.4.8 $100,000,000
-

—_—

stock

•Certificates

].y cipation,

1942

i—33.4
1

•Unsecured bonds

'Secured bonds—;

partment of Insurance for the

made
York,
up 9%(

^issues-Amount ''' Amount'

•

7: [77.77 '//

Total, Less Securities

monthly analysis of the trend of business in hotels,
in their June bulletin, Horwath & Horwath, New

Reserved for Conversion
Securities Proposed
or Substitution
For Sale by Issuers
Effectively Registered
^ ^.-.Percent
; r. ^
Percent,
No. of
Apr.» Avg^.'Apr.» Avg.
,.

lUinob lhsQDept* Changes
/The resigriationjof R. T* N^oht,/
Chief:;|)eputy7 of/ the Illinois De^p

The following statistics are supplied:

up,5%.

THE SECURITIES ACT Of 1933
" ;
1942
; '7 *
*•*-*_ ;

By Types of Securities—April,

V ;

public accountants, state that the total sales in April were
Chicago, has been advanced from''
last year, compared with 6% in March.
A rise of 8% in room
Special Deputy-in the Department
sales is 2 points more than that last month, while one of 11% In j
of -Insurance, to become Assistant
total restaurant.sales is 4 points more.
Again the restaurant pick-up Director/ The* -new appointments
was
more
in beverages than in food.
Total occupancy was 71%,! were madeby - Governor 'Dwight
a rise of 2 points over April,
1941, and the total average rate was;

;

•.

over

;
■

April Hotel Sales Higher
available

approved

in conference until recently. \

In its

offered

those

through agents,
;
•
v'//The -following table is supplied by the Commission:

had

436,029'
428,322
404,199 388,320 ;

—

I planned to distribute $3,722,000 of securities, while $5,175,000 were
;to:be offered through agents.
Compensation to underwriters was at

101,. . .101
-100
^ 101
465,439 '7 7 1014 '7 7101
442,556
100
101

505,233
476,182 7

169,249
153,269
153,442 7
156.201

161,888
145,000
129,834
139,026

•

...

'an^ average

102
102
102

100101 •
93
101
>
94
101
Apr.
I,
'
93
100
'
May
2
;t
135,273
152,569
371,36590 . 7 7 99 ' !
May
9
130,510
143,427
360,221
86
99
!
May 16
1 119,142
141,745
336,530
82
98
|
May 23—.—
120.224
j'% 140,650 7. 7 316,443 -781 ; 7
97
May 30
113,059
132,901
288,516
77
96
]
Note—Unfilled orders of the prior week plus orders received, less production, do not
necessarily equal the unfilled orders at the close. Compensation for delinquent report.^
orders made for or filled stock, and other items made necessary adjustments of unfilled
4_^____
11
18
25_..__

Apr.
Apr.

The Commission under date of May 22, added:

Tobacco Co.
:

177,823

Mar.

that 13;

announces

issue

Mar.

registeration statements, covering 15 issues of securities for an aggre¬
gate amount of $123,059,000, became effective under the Securities
Act of 1933 during April, according to an analysis prepared by the
Research and Statistics Subdivision of the Trading and Exchange
Division.
Securities proposed for sale by issuers amounted to $111,647,000,

163,067

Mar.

$ 123,059,000 Registered In April
and

157,563

28_,

101
101
!
: -7 102
.
100---••,

522,320
167,424
510,542
•
165,240 ■! ■■ /- 496,272
♦'% 164,601 >---493,947

the; Senate

/May'/7. The%hill had; been'
originally passed by Congress, at
last year's session but was delayed

Cumulattvt j oh

7777-777
102

which
Current

■

■%': 7
4 168,424

' Hy %
162,894

adopted;7;a!; ^qj^ereiice:/,/^report,

Percent of Activity I

Tons

Feb.

Reports15 Security IssuesTotaling

Ordzrs

Remaining

Tons

1942—Week Ended—
•

/ Tons

they

before

engage'tiiL^business/; HCretb-!,
freight
forwarders " have

been* regulated: Final CpngressionaL action. on .the/ measure'
came" on May: 1 l/wheh the, House

unfilled

•

never

•

Production

Feb.

Securities

ers/obtain /permits

may
fore;

PRODUCTION, MILL ACTIVITY

7
Orders

Feb.

The

Feb.

SEC

STATISTICAL REPORTS—ORDERS,

24.70
24.02
22.36

Jan.

and

from each

dustry, and its program includes a statement each week

•

Roosevelt signed

gives the ICC the right to fix rates
requires that freight forward¬

83% of the total in¬

member of the orders :and

•

;

The members of this Association represent

industry.

•

;

President

26.66
25.87

May 16 the bill amending the In¬
terstate Commerce Act to provide

24.46

1942—

28.72 :

of 108%

the period last year.

; 35,785,946,533

Dec.;

28.80

-41,890,646,959

Deerf31——i—

Nov.

Freight Forwarders Are
Placed Under ICG Control

39,057,023,174
29—37,882,316,239

31———

Oct.

28.56
29.38

paperboard industry.-

28.46
28.32
28.02

: :;7

production,-and also a figure which indi¬
cates the activity of the mill based on the time operated.
These!
figures are advanced to equal l00%, so that they represent the total!

—

Sept. 30

41,654,256,215
41,472,032,904
40,984,419,434

1710.

for'the regulation.of- freight for¬
warders along the same general
latest figures received by us from the National lines that other, carriers of freight
Paperboard Association, Chicago, 111., in relation to activity in the: have'; been ^gulated;%«The*?'bill

25.78
25.84

39,607,836,569

—

original order was referrea
in these columns April 30, page

Weekly Statistics Of Paperboard Industry

27.07

—"

31—

Aug.

28.00

31—--—: 42,673,890,518.

37,815,306,034 -

July

26.74

27.51

Oct.

41,848,246,961

25.26

39,991,865,997
40,706,241,811
41,491,698,705

July-, 31—-----i

37,110,958.708

31——

June 30_

32.35

30—:—--

May

32.34 *

46,694,763,118

June 29—--i.—

Apr.

panies as limited by L-50.
The

We give herewith

Market Value
Price
7:7 7$
/.V,: $.

„7,;,?

'•

1940—

$6,818,823,000 for the five months, an increase

the $3,271,780,000 for

Over

controlled by

capacity of telephone com¬

the

volume

to their sta¬

essential users are

capital for construction purposes for May reached the rec¬

$16,050,000, was in RFC loans for public improvements and indus¬
trial plant expansion.
4
The month's record new construction financing brought the

and/the average

'-Get

■

2i.41

35.75

users

tus; and' has/nO bearing on ap¬
plications for service of persons
7^ not? included in the essential
category." Applications of non¬

ord high of $4,360,002,000.
This compares with $223,996,000 for the
corresponding month in 1941. Ninety-nine percent of the month's fi¬
nancing, $4,314,000,000, was in Federal appropriations for military
construction. Private investment totaled $29,952,000, and the balance,

14.83

6.19

New

33.11

(operating)

electric

was

New Capital

21.03

:—989,507,862

construction

Waterworks

14.57

36.96

-G&s & electric (holding)^
—.
Communications
________

Jan.

essential

—

Aprt.,30—

17.39

19.65

Utilities:

Aug.

162k770,000

————

22,56

—

Tobacco-

May

' 121,321,000

:-—

services
Steel, I iron & coke

Mar.

explained:
7
L-50,7 as - amended,
places general restrictions on
the types *of telephone service
which can be installed by teleOrder

20.01

303,927,421

29—

WPB

36%, compared, with the five
months of 1941; earthwork and drainage rose 136%, and unclassified
construction climbed 63%, while all other classes of work were

Shipping

2.87

-v:

12.64

Ship building & operating-—_—

Feb!,'

June

19.80

45.64

40.03

•We

16.17

16.50
20.04

27.60

34,647,526.

•

—

14.00

235.438.479

47.77

1,094,017,929.,'

*—14,237,303
168,649,781'
Machinery & metals—
1,137,220,030
Mining (excluding iron)
—1,161,619,411
Phpeo .& publishing———--^--.i . 321.823,507
Fatfojeum
+
-—3,337,479,207
Banrbad—————
:—
2,544,988,061
Retail merchandising
1,691,261,406

All ,Listed

ruled

Interpretation No. 1 of General
Conservation, Order
L-50. The,

21.27

•359,613,795

;

—

i—

11.22.

2,548,109,177
484.189,143

17,25

525,301,393
Financial—-———
.
;
642,537,798
■FOOdl—2,143,820,816
Cbarment-i-^.-i.-.-s.-i^
L&hd & realty

236,659,259

21.00

246,668,628
4,563,597,104

■:;7
7.

13.71

375,929,756\'

Electrical equipment—Farm
machinery
-

Board

Price

Market Value

22.81

473,880,855

—

--—

Blillding—_n——
——
Business & office equipment-

engaged, the War Pro¬

are

duction

13,956,783

Average

12.14%:;-

256,127,652 7.
L—1-———— ?%2,733,474,119/

AVlation-

they

-April 30, 1942

V77' S

AinU6ement-+__../----.-+---+—'---o

Textiles—

sential public

'■£ 166,168,492
1,105,899,414

municipal:.—L———''

and

Federal

classified by leading in¬

Price

Market Value.

\ •'

Automobile—

Gas

284,091,000

neces¬

'JJ Group

Rubber

construction

State

value and average price'

Average'

Leather—

125,280,000

'phone, 'companies
throughout
the" country, • and sets
up
a
The first billion-dollar month in the history of engineering con¬
"clRSsificatibh^pefspns ; en-+
struction brought the volume for the initial five months of 1942 to
gaged in war or necessary pub¬
lic activity' who £ may obtain
$3,936,356,000, a new peak 75% above the total for the period last
*: prefer'entiaF; treatmeht; in
year, and almost equal to the total for the entire year of 1940.
ob^
Just over 85% of the volume,- $3,348,013,000, was federally-fi¬
■7
tainin^ newsservice or a chahge
nanced construction, 214% above the former high recorded for the 7 'of 6erVic6.
;
'
7
five-month period a year ago.
Urtdef tbteMht^rpretatibri; ii is^
State and municipal work totaled
made clear that persons in the
$287,582,000, a decline of 47% from last year.- Despite the sharp
decline in non-Federal work, the public volume reached the unprec¬
preferred Category can not ob- "
edented total of of $3,635,595,000, 125% higher than in the 1941 period
tain % service /merely ..on
the
■1
Private engineering construction was $300,761,000 for the five months,
grbtiftcf that they
^hg^ged" ih|
a drop of; 53 % from the preceding year.
■ ;; %, ;
/ ;-war pr essential ".civilian work;%
n Approximately
seven-tenths of the 1942: cumulative total was /"but" ais6 m
concentrated in building construction.
The building volume, $2,service desired is essential to 1
778,724,000, was double that reported for the corresponding 1941
the discharge of their responsi¬
period and included $2,505,277,000 in public buildings, $152,870,000
bility for public health, welfare
m commercial building and large-scale
private housing, and $120,- Z or security.".
+;%:J'7>v'7:
577,000 in industrial buildings.
The latter two classes of building
The interpretation is intend¬
construction were 41% and 56% lower than 1941, in that order, but
ed to clear up doubts raised by

-May 29, 1942

Chemical

$409,371,000
—I———-

construction

Public

;

Private

•

71% In the following table listed stocks are
dustrial groups with the aggregate market

construction

Total

Exchange
member total net borrowings amounted to $324,410,876.
The ratio
of these member borrowings to the market value of all listed stocks
on that date was, therefore, 0.99%.
As the above figure includes
all types of member borrowings, these ratios will ordinarily exceed
the precise relationship between borrowings on listed shares and

new

!; mustr demon-

service

to discharge the war or es¬
activity in which

sary

May, 1942
(four weeks)
$1,044,572,000
49,325,000
995,247,000
55,847,000
939*400*000

April, 1942■■■ ->■
(five weeks)
$898,696,000
63,732,000
834,964,000
66,036,000
768,928,000 v

May, 1941

the

that

strate

for

applicants

telephone -'service

records in piling up'a volume of $1,044,572,000

market value of $37,815,306,034:

Phones:t! •.+;%;

N^Ne^

Preferred

The May heavy engineering construction total eclipsed all previ¬

ous

May Construction 37% Over Previous Peak

Thursday, June 11, 1942

'btji

'J-jx

alette

yti'ii'.hiiz

i&imi.

ft-

a >m»

77+/

Volume 155"

Number 4080

THE COMMERCIAL & FINANCIAL
CHRONICLE

Daily Average' Crude Oil Production For Week

Act, "shall not exceed in the aggregate
$125,000,000,000 out¬
standing at .any one time.'" '
' r; I '
j.
^
>.
•

The

Ended May 30,1942 Increased 278,300 Barrels
The

American

average

Petroleum

crude, oil

gross

Institute

estimates

production for

the

that

the

ended

week

daily

May

1942, was 3,877,300 barrels, an increase of 278,300 barrels over the
preceding week and 91,200 barrels higher than in the correspond¬
ing week of last year.
It was also 402,800 barrels in excess of the
?.daily average for the month of May as recommended by the Office

,>f Petroleum
Institute

Coordinator.

follow:—

Further

details

reported

standing and the face
limitation:

•

♦O.P.C.

■

Week

Allow-

Recommen-

•+S

Oklahoma
Kansas

From

May 30

Week

t383,250
1*256,500
14,000

4,500

Panhandle Texas

155,950

Ended

Certificates

X-,

—

4,606,583,000

2,256,576,000

389,100

413.350

254,350

208,900

3,950

4,300

87,150

on which

interest has ceased—

148,700

185,850

259,100

86,300

79,500

329.350

373,700

135,200

165,950

324,850

82,750

251,550

1,549,800

346,500

1,224,100

1,406,250

—

East Texas

Total Texas

—i-l-L

298,600

Face amount of

obligations issuable under above authority,

RECONCILEMENT WITH DAILY STATEMENT OF THE UNITED
STATES TREASURY,
1

MAY 31, 1942
. ;
outstanding public debt obligations issued under
authority of the Second Liberty Bond Act, as amended—,.
;
Deduct, unearned discount on savings bonds (difference between cur¬
redemption

other

value

public

subject

and

$70,156,382,832

maturity value)

72,750

Eastern

$68,006,344,471

debt

105,400

—

Michigan

Wyoming

——.'

Montana

—;

27,500

stated:

550

86,200
294,050
21,600

2,750

98,900

2,300

64,350

38,000

1,800

93,400
21,700

85,150

350

6,850

4,000

62,600

98,300

93,350

21,700
6,350

: < 73,300

Total East of Calif.

2,800,700

Total United States
C.

113,050

7,850

73,300
\v7

—

54,450
•

3,294,000

583,300

■»> .►

3,474.500

recommendations

—

§673,800

673,800

——'

64,400

;; 25,200

New Mexico

♦O.

101,000

"7.". 7,900

———

California

73,200

3,550

341,200

22,000

State

94,150

19,050

+ 326,000

2,996,300

3,175,900

47,700

629,850

610,200

—

3,877,300
and

•

allowables

278,300

represent

3,626,150

the

3,786,100

production

all

petroleum liquids, including crude oil, condensate and natural gas derivatives recovered
from oil, condensate and gas fields;' Past- records of production
indicate, however,
that

certain wells may be incapable of producing,the allowables granted, or
may be
limited by'pipeline proration. 'Actual State production would, under such conditions,
prove to be less than .the allowables.
The Bureau of Mines reported the daily average

production of natural gasoline in February, 1942, as follows:
Oklahoma, 29,800;
Kansas, 6,000; Texas, 112,700; Louisiana, 20,800; Arkansas, 2,300; New Mexico, 5,600;
California, 42,600; other States, 21,900. v
—

tOkla., Kans., Neb., Miss., Ind. figures are for week ended 7
fThis is

the

net

basic

16-day

allowable

for

$195,990,180

the

period May 16 to 31, inclusive.
Under the order of May 15 all fields are permitted to produce on 13 out of
16
days, there being only a small exemption from the shutdown ordered for May 16,
17 and

fields

whose oil

considered

for the

necessary

effort.

war

CRUDE

RUNS

STILLS;

PRODUCTION

GASOLINE;

STOCKS

OIL, WEEK ENDED MAY 30,

Metal

of May

OF
,

chrome

war

Complete

ore.

Extension

Figures in this section include reported totals
plus an estimate of unreported amounts and are
on

Bureau of Mines basis

amount

statement,

tial

Stocks

fineries

Finished

Includ.

Crude
Runs to Stills

andUn-

materials

allocation

of Gas

of Rer

sidual

% Re-

Daily
% Op- Natural finished Distillate
Rate porting Average erated Blended Gasoline
Fuels

District—

Fuel

Oil

•Combin'd: East Coast,
Texas
ana

and

Louisi¬

Gulf,
Gulf,

Louisiana

June

Inland

the

—_

California

Tot.

——_—

89.7

63.7

159

91.4

473

3,422

446

620

84.9

778

99.2

2,462

19,294

2,759

81.1

360

86.1

1,136

3,091
1,615

138

50.7

65.2

335

2,530

325

572

787

90.9

616

78.3

1,631

17,196

11,761

56,848

2,383

basis May 23, 1942,;

4,684

Bur.

basis May 31,
♦At

the

86.9

Mines

1,069

3,393

3,759;

1941,

3,522

75.2

10,478

72.4

10,042

f95,355

31,384

97,034

30,614

12,349 r ; 93,156

35,373

79,628
79,442

•

91,370

transit

and

unfinished 7,313,000 bbls.

JAt refineries, at bulk termi¬

pipe lines.

Nomination

reported'lri

was

May 14 issue,

18-39.

page

The Providence "Evening
increased its price,

issue

1914.

The

order

in view of

June

The four daily
newspapers pub¬
in Maine by the'

lished

Gajqnet
Publishing Co,, Portland "t>ress
Herald," Portland "Express,"

publication further went
in part:

livery

nominally

was

June

52.000

terms,

52.000

look

for

defined

per

Quotations

the

lead-covered

United

States

Offerings

used

appears

This compares with 107,285
tons in
1940 and 74,371 tons in
lead

The

for

figures

all

kinds

cover

use

not

here

ranged

$198.08

quantity
prices.

stabilize

delivery,

from

well

levels.

eased

METALS

$193.15

11.775

prompt

metal

below

ceiling
Coast

was

quotable

$187 to $191 per flask.

11.775

ward business the inside
price has

Silver

During the past week the silver
market in London has been un¬
Official and

prices

are

the

The New York
U.

also

Treasury

unchanged

Statutory Debt Limit As of May 31,1942
The Treasury Department made public on

June 3 its monthly
report showing the face amount of public debt obligations issued
under the Second Liberty Bond Act (as amended) outstanding on
May 31, 1942, totaled $70,156,382,832, thus leaving the face amount
of obligations which may be issued subject to the $125,000,000,000
statutory debt limitation at $54,843,617,168.
In another table in the
report, the Treasury indicates that from the total face amount of
outstanding public debt obligations ($70,156,382,832) should be de¬
ducted $2,150,038,361
(the unearned discount on savings bonds),
reducing the total to $68,006,344,471 and to this figure should be
added $564,263,110 the other public debt obligations outstanding
which, however, are not subject to the statutory limitation. Thus,
the total gross debt outstanding as of May 31 was
$68,570,607,581.
The

following is the Treasury's report for May 31:

Section

vides ^that

("E.

J."

QUOTATIONS)

11.700

52.000

6.50

52.000

6.50

Zinc

St. Louis

6.35

8.25'

6.35

8,25

6.35

8*25"j

6.35

8.25

telephone,

June

11.775

11.700

52.000

6.50

11.775

11.700

52.000

6.50

: 2

11.775

11.700

52.000

6.50

6.35

8.25

11.775

11.700

52.000

6.50

6.35

8.25

trial

cable.

The

peak in use of
lead by cable manufacturers was

220,000 tons in 1929; the low since
that year was 31,400 tons in 1933.

.'>!

HOLIDAY

Average

Average prices for calendar week ended May 30 are: Domestic
refinery, 11.775c.; export copper, f.o.b. refinery, 11.700c.;
Straits tin, 52.000c.; New York lead,
6.500c.; St. Louis lead, 6.$50c.;
George C. Heikes, geologist, has
St. Louis zinc,
been
named
head
8.250c.; and silver, 35.125c.
of the Zinc
Zinc

Branch

the

copper f.o.b.

War

The

Production

Board, succeeding David A. Uebelacker, whose resignation from
that post becomes effective July 1.

above

markets, based

quotations
on

"M. & M. M.'s" appraisal of the major United States
by producers and agencies.
They are reduced tb the
St. Louis, as noted.
All prices are in cents per
pound.'-*

are

sales reported

basis of cash, New York

Copper, lead and zinc quotations are based on sales for both prompt and future
deliveries; tin quotations are for prompt delivery only.
■

The

industry

was

pleased

the speed with which June
cations

reached

first

were
some

made.

allo¬

dificulty in

the

delivered

trade,

domestic

consumers'

figures shown above

average

Export quotations for
board.

prices

quoted on a delivered basis; that is,
charges vary with the destination, the
net prices at refineries on the Atlantic seaboard.
Delivered
copper

plants.

are

prices in New England

the

day of the month and few
any

over

Certificates

consumers

21 of the Second Liberty Bond Act, as amended, pro¬ have
experienced
the face amount of obligations issued under authority obtaining metal.

35V8C. and 35c., respectively.

public utility marine, and indus¬

•

On for¬

been shaded.

11.700

Pacific

the

changed at 23y2d.
have

Large <rcon-

ready to enter

contracts.

flask, spot and nearby

per

reducing the

PRICES

Electrolytic Copper
Straits Tin,
—Lead
Domest., Refin. Exp., Refin. New York New York
St. Louis

May

news¬

During the last few days, prices

con¬

quicksilver

have

direction.

are

long-term

of quicksilver

material contain¬

for his product.

DAILY

American Bureau of Metal Statis¬

1939.

increased, and the price structure

173,000 tons of lead during 1941,
according to an estimate by the

Some
observers in the
industry believe
that Metals Reserve will
have to
accumulate quite a
large

pur¬

Quicksilver
of

into

Ore

covering

one

sumers

long ton, dry, and the

money

unchanged.

cable

52.000

chrome content, the producer will,
for all practical purposes, obtain

present is generally
excellent.

than

52.000

tinues at 2.5 to 1.

imports from other
large, the supply out¬

the

52.000

$40.50

reference

price increases appeared in
May 21 issue, page 1937;

52.000

ratio of chrome to iron also

better

ceased

of
advertising
impossible to continued *

recent

our

a minimum of 45% of Cr203,
against a minimum of 48 % in the
previous schedule. The base price,
posted May 25, 1942, continues at

and

regarded
were

52.000

ing

supplies

newspaper,

curtailment

chases of domestic chrome ore
by
the Metals Reserve Co. have been
lowered.
"High Grade" ore is

production
ex¬
pected to increase because of the

from

paper

52.000

Chrome

Mexican

countries

and

52.000

Specifications

Lead

daily

made it

Chinese tin, 99%, spot,
51.125c.,

The tonnage for the June "pool"
was
allocated early in the week.

price

publication on May: 23. It was said
that increased costs of
operation

all week.

now

its

——HOLIDAY-

June

•

noon

ob¬

consumers

„,/r5
, q
The Milwaukee
"Post,'Van after*

Aug.

52.000

June

three to four cents...

follows:

52.000

June

may

purchase

effective

con¬

July

May 30

country

June
52.000

VTay 28

copper on the 12c. Valley
basis, and foreign metal was pur¬
chased by Metals Reserve at the
equivalent of ll3As. f.a.s. United

News," afternoon daily, increased,

con¬

future date.

some

top
the record established in May last
year, based on estimates in the

that

The Fall River (Mass.)
"Herald-

first-quarter pe¬
The price situation

tfay 29

With

Board

Straits quality tin for future de¬

Copper

Domestic

raised the price of their
publica¬
tions from three to five
cents,
effective June 1.
/

the

occurred at

to say

during June

Waterville "Sentinel" and
Kenne¬
bec
"Journal"
(Augusta),
also

unchanged.
With costs
high, the industry would not be
surprised if an upward revision

of the War Powers Act of 1941."

rising productiort' bpfets
declining advertising.
v
i'r

and

remains

will

1, from three to four cents

Production

for

J$l£-

effeqtwe

June

Tin
War

tics.

request of the Office of the Petroleum Coordinator,

tFinished 88,042,000 bbls.;
nals* in

8,893

16,882

Election.

Newspaper Price Changes

a.-V":

remain in force until termination

Manufacturers
4,684

15,024

44,020

basis May 30, 1942,'
Tot. U. S. B. of M.
U.

4.441

1,519

84.5

784
418

—

its

riod of 1942.

Secretary of the Navy could

enacted

sumers

make such purchases under a law

from
174

Texas-

Appalachian —i
Ind., 111., Ky
Okla., Kansas, Mo.
Rocky Mountain

conducting a survey of actual
sumption of tin by domestic

War, Commerce, Agriculture, and
the Treasury.
Heretofore, only

James B,

OOU

value)

purchases of domestic
beryllium has been ordered.

The

1, to the Secretaries of

agreement

North

Arkansas

redemption

$9,569,035,314.

Markets"

for

entry into the
United States free of duty was
granted by President Roosevelt,

IStocks JStocks
Oil and

years.

officers

these

our

demands, offerings of quicksilver by do¬

at Re-

Daily Refining
Capacity
Poten¬

(current

the

States ports.

Gasoline

Production

elected

$68,570,607,581

tained
(Figures in Thousands of Barrels of 42 Gallons Each)

therefore

1942

right to make<e>
purchases of foreign

emergency
war

trade.

1942

was

31,

Principal

Mineral

and

"Despite heavy

consumers

FINISHED AND UNFINISHED GASOLINE AND GAS AND FUEL

outstanding

Deliveries of copper to domestic

fRecommendation of Conservation Committee of California Oil Producers.

■

period of three

spectors

11,231,630

357,041,300

mestic producers have increased and business is
being transacted at
several dollars a flask under the maximum set
by OPA.
Metals
Reserve again has lowered its standard on

The

May 27.

The re-elected mem¬
Bernard J. Conlin, Mil¬

Irwin, James C. Royce, and John
3rd, were elected as Ip-

Noii-Ferrous Metals-Quicksilver Price LowerDomestic Chrome Specifications Eased

71,500

—

are:

nal"

73,200

—.

debt

gross

maturity value.
according to preliminary public debt

325,800

were

and »13

R. Tolar

the

♦Approximate

252,600

incl.

Ind.)-

Colorado

121,300

60,500

(not

288,450

17,900

Total

84,500

1,900

were

Gratuity Fund; for

564,263,110

219,150

members

Herman D. Hensel.
Trustee of the

2,150,038,361

obligations outstanding but
statutory limitation:
Interest-bearing
(pre-war,. etc.)
Matured obligations on which interest has ceased
Bearing no interest

303,650

+82,000

329,200

Illinois

650

named

who

time two

same

P.
McEnany,
Perry • ; E.
Moore, John H. Scatterty, Charles
Slaughter, and Philip B. Weld.

10,500

—

Managers

the

wood

Total face amount of

11,150

+
—

294,700

48,100

Indiana

72,191

86,550

208,150

Arkansas

111.

321,100

Total Louisiana

Mississippi

tl,493,800

74,000

North Louisiana
Coastal Louisiana

960,000

Erlanger, J. Henry Fellers,
Tinney C. Figgatt, Richard T.
Harriss, Frank J. Knell, Jerome
$54,843,617,168 Lewine, J. Robert
Lindsay, El-

93,871,250

276,650

100,050

members

Brunt.

209,850

495,000

210,000
Texas—

Central

Eric

.and
Treasurer.

70,156,382,832

129,650

Southwest Texas

East

Robert

ton S.

77,800

Coastal Texas

North Texas

bers
obligations,

;

Van

$70,062,511,582

Matured

0.225c.

copper

are

delivery

per pound

above the refinery basis.

reduced to net at refineries

•iit.dy'"-

the Atlantic-sea¬

foreign business, owing to World War II, most sellers are restricting offer¬
ings to f.a.s. transactions, dollar basis.
Quotations for the present reflect this change
in method of doing business.
A total of .05c is deducted from f.a.s. basis
to

arrive

have served
during the past year.
The newly elected members
are
Arthur J. Pertsch and Marvin S.

$50,610,998,782
indebtedness

the

newly

19,451,512,800

not

1941

10,000
10,350
53,300
12,950
124,400
52,750

West Texas

elected

Ex¬

President,

elected at the

$12,588,353,800

Cotton

asVice-President,

Board

$38,084,566,300
11,719,073,675
77,491,000
729,867,807

value »*__

June

William J. Jung

Treasury bills (maturity value)

Add

May 31

1942

$125,000,000,000

250

time

one

York

Murray

Alliot

Treasury
Savings (maturity
Depositary
Adjusted service

rent

3,000
+
—

98,000

any

New

change

Week

Ended

1942

Nebraska

4 Weeks

Change

Ended

Beginning
"May 1
438,500
438,500
259,300 ;J
259,300
May

May 30

ables

dations

■

(FIGURES IN BARRELS)

—Actual Production—

can

outstanding at

The

of May 31, 1942;

Treasury notes

*State

^Cotton Exchange Elects

,•

of obligations out¬
still be issued under this

amount

"Bonds—

DAILY AVERAGE CRUDE .OIL PRODUCTION
\ y.;

;

Intorest-beafing;

the

Reports receivedfromrefining companies owning 86.9% of the
,4,684,000-barrel estimated daily: potential refining capacity of the
United States, indicate that the industry as a whole ran to stills,
:on a Bureau of, Mines' basis, 3,522,000 barrels of crude oil daily
•during the week ended • May 30, 1942, and that all companies had
in storage at refineries, bulk terminals, in transit and in pipe lines
as of the end of that
week, 95,355,000 barrels of finished and un¬
finished gasoline.
The total amount of gasoline produced by all
•companies is estimated to have been 10,478,000 barrels during the
week ended May; 30, 1942,
■

amount which

Total face amount that may be

following table shows the face

Outstanding

30,

2221

of that

the f.o.b. refinery

(lighterage,

quotation).

•

:'z z

..r:

r..-

THE COMMERCIAL & FINANCIAL CHRONICLE

2222"

Urges FHA Home Owners

Weekly Coal and Coke Production Statistics

To Reduce Indebtedness

Interior,
in its latest report states that the total production of soft coal in the
week ended May 30 is estimated at 11,090,000 net tons. The decrease
from the preceding week, 195,000 tons, or 1.7%, was due to the par¬
tial holiday observance of Memorial Day, May 30.
Production in.the
corresponding week of 1941 was estimated at 9,477,000 net tons.
The U. S. Bureau of Mines reported that the production of an¬
thracite for the week ended May 30 was estimated at 813,000 tons, a
decrease of 388,000 tons, or 32.3%, from the preceding week.. When
compared with the output in the corresponding week of 1941, there
was a decrease of 230,000 tons
(about 22%). The calendar year to
date shows a gain of 15.8%. when compared with the corresponding

than 800,000 American

who

families

buying their
homes under the FHA mortgage
insurance

are

plan

their

use

in¬

creased incomes to reduce the in¬

debtedness

their homes.

The President made this

letter

Jr.,

John

National

appeal
Blandford,

Adminis¬

Housing

It follows:

trator.

week of 1941.

My dear Mr. Blandford:

The U. S. Bureau of Mines also reported

Our national program

of war
production is inevitably bringing about a large increase in the
incomes of many people.
At

V
•

the

•

time

same

are

«factories

are

incl.

Daily

and to the

such

trend,

national

whole

economic

of the principal points of
policy is to encourage the
paying off of debts and mort¬

the

thousands
of
now
buying

families

homes

through the FHA

mortgage insurance plan, there
are
many whose incomes have
been substantially increased
result

of these

expendi¬
tures and who are thus put in a
position to increase the paya

ments

anthracite—

Penn.

Housing Administration, to
bring to the attention of these

families this opportunity to

use

this increased income to reduce

the indebtedness
and

the

their homes

time

same

our common

bat¬

tle against a rising cost of living.
\ FRANKLIN D. ROOSEVELT.

Honorable John B. Blandford, Jr.,

Administrator,

•

J4Y Clearing House Amends

772,000

meeting of the New York
Clearing
House
Committee
on

1,141,000

146,200

♦Includes

washery

and

tExcludes

operations.
revision.

May 31,
1941

3,242,500

2,230,200- 2,734,100

colliery

coal shipped by truck from authorized
^Comparable data not available.
§Subject to
'
.*

fuel.

and

coal,

(In

PRODUCTION

WEEKLY

Thousands

COAL,

STATES

May 23,

393

137

——.

make

the minimum $500 instead
$100. The amended portion of

follows:

Illinois—

130

651

463

434

35
95

1,002

226

236

Maryland——

•

796

110

106

679

•

r |

Week Ended May 23,

-S

they are registered—•
•;y

' 0ther sales

t y «

698

597

384

458

2,758

2,880

2,687

2,028

2,002

152

155

149

117

108

121

l-n.:;

Total sales

100

.24

436

380

287

242

Total

...

.162,910

►

the floor—.

sales

111,420

•

—

______

18,500

—;

Other sales b

63,990

—...

Total

2,341

2,258

1,901

1,679

878

800

581

531

862

133

129

110

60,662

Total purchases

1,380

860

•

2,270

4.56

82,490

sales

3. Other transactions initiated off the floor—
'

„

I'. i

10,325

7,839

7,422

1,201

1,262

868

1,085

12,742

11,165

8,707

8,507

Total

6,050
46,000

sales

Total—

2.65

52,050

331,912

Total purchases

1,932

12,486

sales

Other sales b

10,878

840

Short

.yy **5

11,480

12,810

Short

sales

233,380

sales

Total

Total Round-Lot

on the N. & W.; C. & O.; Virginian; K. & M.; B. C. &
G.;
the B. & O. in Kanawha, Mason, and Clay counties.
tRest of State, including
District and Grant, Mineral, and Tucker counties,
tlncludes

64,070

—

Other sales b

♦Includes operations
Panhandle

Bureau

§Data for Pennsylvania anthracite from pub¬
HAverage weekly rate for entire month.
and South Dakota included with "other Western

Mines.

Georgia, North Carolina,
ttLess than 1,000 tons.

14.80

297,450

Stock

Sales

Transactions

the

York

New

for Account

Curb Exchange

Members*

and Stock

(Shares)

Arizona,

California, Idaho, Nevada, and Oregon.
♦♦Alaska,

purchases

Short

250

Total, all coal

States."

;—

Other transactions initiated
-.

3,578

423

the

•

104

860

•—

records

,=v

123,390

**14

§ Pennsylvania anthracite

lished

■ ?-•

159,830

——

39,520

■

ma-

.V:;

sales

Short

.y-r

Total purchases——

2,127,050

-y

the Account of Mem¬

for

Transactions of specialists in stocks In which

tOther Western States

ctPer Cent

2,045,950

—

bers, Except for the Odd-Lot Accounts, of iOdd-Lot

Washington
♦West Virginia—Southern
(West Virginia—Northern—_
Wyoming—

■[

V,-.

81.100,

...—

sales b

Utah

yy'y

1942

Total for Week

X, Dealers and Specialists:•

y y,

.—

of;Mejmbers* (Shares)^'

ystoclt Transactions for Account

Stock Exchange and Round-Lot

Total sales

Round-Lot Transactions

,-w—«...

Pennsylvania bituminous

engaged

183

Nor th and South Dakota.**

Texas—.

Total Round-Lot Sales:.

v 131

yy'y:3

Tennessee-

dealers

reports In the various classifications may total more than the num¬
because a single report may carry entries In more than one

**•

•i-'-y 4.

^.yv

New Mexico

•

■'.y":

1,292

750

the round-lot transactions

and

reports received

394

903

registered

are

fraction of the odd-lot transactions are effected

The number of
ber

168
•

721

Michigan-,
Montana—

Ohio

243

■

157

v.-

they

solely in the odd-lot business. As a result, the round-lot transactions of specialists in
stocks, in which they are registered are not directly comparable on the two exchanges.

.398

tt-

155

979
,

556

*"■

562.

276

176

Kentucky-r-Eastenu—
Kentucky—Western—

619

other

all but

Other

82 r

1,048

in which

stocks

Short, sales,

461

————

transactions—

resulting from such odd-lot transactions are not - segregated from the
round-lot trades. On the New York Stock Exchange, on the other

specialists

267

1,171

Missouri!

and

the

.y,;

yyiy2iyyy.y

Indiana
Kansas

avge.

M937;

295

15*

Note—On the NeW York Curb Exchange, odd-lot transactions are handled solely bjr

111923

May 22,

1940

1,170

y.:.,

Georgia and North Carolina-

y 4. Reports showing

May 25,

350

126

showing other transactions initiated off

classification.

■

696

161

May

388

——.

Exchange

998

——

...

■-y.yy the floor

;:yyy3-y*yy*^

1941

1942

Arkansas and Oklahoma

N. Y. Curb

./•

Total Round-Lot Stock Sales on the New York

May 24,

May 16,

1942

y^y-

Alabama

the

reads

-Week Ended-

Alaska—

——

floor

3. Reports

of Net Tons)

and State sources or of final annual returns from the operators.)

y State—yy"

received-

Reports showing other transactions initiated

hand,

25,108,900

1,178,600

dredge

Reports showing, transactions as specialists-.^—

(The current weekly estimates are based on railroad carloadings and river ship¬
ments and are subject to revision on receipt of monthly tonnage reports from district

and

revised

was

June 1,
1929 k

members.^ These

respective

Exchange

demand

now

1942

124,400

178,000

1,182,700

by-their

Exchange

Curb

N. Y. Stock

specialists'

total—.

States

York

New

By-product coke—
United

the

Total number of reports

specialists

total

States

published are based upon weekly reports filed with the New York Stock

and

reports are classified as follows: y: "

COKE

Beehive ooke—

May 28 the rule regarding the re¬
turn of "not
good" checks and

the rule

AND

11,285

drafts

May 30,

1941

tCommercial production

United

The data

Exchange

1,043,000 24,385,000 21,060,000 30,791,000
991,000 23,166,000 20,007,000 28.574,000

1,201,000

Rule On Check Return

1937

—Calendar year to date

1942

Virginia———^

; National Housing Agency.

ANTHRACITE

May 31,

May 23,

813,000

eral

importantly in

Trading on the- Stock xExchange^f6rtheacctoiiht
*
(except odd-lot dealer$) during the week ended May 23 (in round-i
transactions) totaled 629,362 shares, which amount was 14.80%
of total transactions on the Exchange of 2,127,050 shares.-: This com¬
pares with member trading during the previous week ended May 16
lot

comparison

"Total, incl. colliery fuel

Colorado

their mortgages.

I therefore urge you, through
the Commissioner of the Fed¬

•,

182,628 V.r; 192,053
1,434
1,523

war

•

1941

237,424
1,877

Week Ended-

ESTIMATED

Among

1942

9,477
1,755

PENNSYLVANIA

§May 30,

gages.

tRevised.

PRODUCTION

ESTIMATED

that

American

the Commission explained.

pL422;010 shares; Or 43.15% of total trading Of l,604j280^shares^ Oh'
the New York Curb Exchange, member, trading during the week
ended May 23 amounted to 72,235 shares,-or'13.99% of- the total'-vohume on that Exchange of 258,175 shares; during the preceding week
trading for the account of Curb members of 89,345 shares was 14.50%'
of total trading of 306,795shared -*• - •* .*• *
•''■ > ?■
<t': V The Commission -made available- the-following data for the week
ended.May 23:
y y*.:;-y>y;....
y-wy
\y y,*^.y y/,. yy. ■

and statistical convenience < the
$May 30 weighted as 0.3 of a normal working day.

historical

purposes

production of lignite.

structure.

One

their

1,881

economic

ended May 23, 1942, continu¬

series of. current figures being published by the Commission.
Short sales are shown separately from other sales in these figures,
a

the

people of the United

ing

(In Net Tons)

policy designed to stablize the
-cost of living and thereby fortify
our

for

"Includes

proposed to the Congress

J i States

■

11,285

$2,092

mine

prices.

forestall

To
have

ahd the volume of round-lot stock transactions for the accbunt bf all
members of these exchanges in the week

pro¬

COAL,
f \

1941.;.

11,090

fuel

average

undesirable and unnecessary

rise

figures showing the daily volume of total round-lot stock sales on
the New York Stock Exchange and the New York Curb Exchange

•----•---January 1 to DateMay 30,
May 31, y May 29,

May 31,

1942

SOFT

TONS

- •

tMay 23,

1942

•Bitumlnous coal—

Total,

NET

Week Ended

..'rnW

.....

May 30,

PRODUCTION

STATES

THOUSANDS

IN
■

being converted to
war production.
As a result of
this enlarged purchasing power
as against a curtailed supply of
goods, the nation is faced with

yyyy

June 8

in the United States for the week ended

UNITED

ESTIMATED

necessarily
taken away from
civilian use, and machinery and

•'<

goods

that the estimated

The Securities and Exchange Commission made public

May 30 showed an increase of 4,100 net tons when compared with
the output for the week ended May 23.
Coke from beehive ovens
decreased 31,800 tons during the same period.
' < '.'V

materials and

raw

manufactured

many

duction of byproduct coke

"ft

Trading On New York Exchanges

The Bituminous Coal Division, U. S. Department of the

President Roosevelt has appealed
to the

Thursday, June 11; 1942

Week' Ended
Total Round-Lot Sales:

May

23,

1942

Total for Week

Short sales

Other

Provided, however, that "not
good" checks and other demand

aPerCent

3,405

sales b

254,770

—

drafts for
turned

less

branches of
clearing non-mem¬

bers, in either Central
zones,

the
2

may

also

Outlying

delivered

Clearing House not later than

o'clock

A.M. of the following
day, in envelopes marked
"Return Items," without previous
notice being given, but subject to

business

other

;all

Comptroller

$50

over

bearing

endorsement

bers and their branches

ing non-members in

distributions of $1,314,545 to 40,427 claimants who
proved claims aggregating $17,239,869, or an average pay¬
ment of 7.63%.
The Comptroller's announcement adds:
The

the

authorized

protest

and

clear¬

Central

notice

maximum

and

percentages of dividends au¬
65.0%, while the smallest and largest

; were

during

the

month,

one

CREDITORS

INSOLVENT

Distribution

•.

Calif.,

President

of the Valley
Cotton Products Co., cotton mer¬
chants, and Renan Randel Kim-

brough,
a
cotton
merchant
in
Memphis, Tenn., were elected to
membership in the Exchange. Mr.
Kimbrough is also a member of
the Memphis Cotton Exchange.

Date

First
&

American

Trust

The

Co.,

Joliet,

111.

Bank

Berwyn,

Nat'l

Joliet

First

Nat'l

III.

ville,
First

Total
2.

Other

stead,

■>.

80.13%

160,048

65.00%

Total

...

223,497

:»

97.9%

192,750

99.68%

2,829,073
2,885,478

Bank, Grand

5-19-42

112,495

Monongahela
Nat'l
Bank, Brownsville, Penn.-

5-13-42

84.25%
■-

The>

274,313

•

1.06

...........—5,855

sales

11,250

;

11,450

———

....

yy;

200-

•

—....

-r
y'
Total ^purchases:-i—.......i•
28,705
Short, sales
—i...—
>,
:-3,025:\.
.-■y >yv..Other salesb40,510
.

;

y *

•

,J^; 3.35

yv.

• V

.■'•--u.-v

"4. y'

•

• -•

.y,yy
,y

• •
•;.-V' •''•
.

sales

43,535

—

Cy>Od4r^ Transactions-tor. th«.f Account *pf Special- lStS—t.-

■!'

7Customers'.' short

yTotal purchases
'

••

••"yy

13.99

ii'-'K

Total

——

' *
•

•''•

'i- y'i'

-y'-'!; • :r 50 ''yyyy'.H:y.':.y.w
ry .v

J8.527-

yv. -^

—

18,577

—

sales

—:—

10,497

.y.y

- .

V-.y..y V

partner^ Including special partners.

;

•The term "members", Includes all regular and associate Exchange members,

their

y y'

transactions as per cent of twice total round-lot volume. In
calculating these percentages,. the total members' transactions is compared with twice
the total round-lot volume on the Exchange for the reason that the total of members'
a

Shares in member

Includes

both purchases

only sales.

are

and sales,
'

b Round-lot

rules

3,918,754

sales-.

Customers' other sales c__—-——

2,646,948

yi y
53.0%

2,360.

transactions

;

2,360

.•

sales

1,414,401

.•

5-16-42

—-.4-

yy:y/

■

% ■ ■: 4. Total—

firms and their

5-28-42
Nat'l Bank,

0 ." '

-1

3,130.

246,228
...

9.58
y

_—

Other sales b

Total

2,837,667

sales

purchases
Short sales •

yy.':%;

$461,320

29,725

—

Total

Claims*

72.33%

107,919

Hemp¬

The First Nat'l

208,001

;

26,900*

—

Other transactions initiated, off the floor—>

Forest-

Bank,

■"

Proved

20.2% y

sales

Total

Ro¬

High Point, N. C.
N.

$35,522

5-29-42

Bank,

The Commercial

Forks,

5-27-42

Other sales b .y.

1
■.

2,825

—r

y1' '■

Amount

•

'—r

purchases.

Short

y: ; ,:

19,720

—

transactions Initiated on the floor—

Total

•y.\,

5-21-42

Bank,

Nat'l

to Date

5-18-42

—

Nat'l

■

Dividends
T

Bank,

chester, Mich.
First

Authorized

■<

Authorized

by. Dividend

Authorized

of Bank—

Percentage

of Funds

Exchange held on May 29,
Fielding White of Fresno,

Total
i-y!': y,:

BANKS

AUTHORIZED DURING THE MONTH ENDED MAY 31, 1942

Name and Location

Cecil

NATIONAL

sales

Other sales b

PAYMENTS

purchases

Short

was

follows:

DIVIDEND

New Cotton Exch. Members

ton

Total

dividend authorizations during the month
and $274,313, respectively.
Of the eight dividends

dishonor.

At a meeting of the Board of
Managers of the New York Cot¬

Account

for a regular dividend
payment and seven were for final dividend payments.
Dividend
payments so authorized during the month ended May 31, 1942,

and

matter

involved

$35,522

were

and

4.25%

were

payments

items

Outlying zones are subject to
the provisions of Rule III in the

minimum

thorized

mem¬

the

they are registered—
-

have

out-of-town

returned

for

Members:
-.
1. Transactions of specialists in stocks in which

•

the

will effect total

regulations

of this rule. All such

Currency Preston Delano announced on
June 3 that during the month ended May 31, 1942, authorizations were
issued to receivers for payments of dividends to the creditors of
eight
insolvent national banks.
It is stated that dividends so authorized

affecting
items returned under the provi¬
sions

258,175

Transactions

Round-Lot

Insolvent National Bank Dividends

by members,

members,

sales

Total
B.

than $500 each re¬

short

included

while the Exchange volume

includes

sales which are exempted frotn restriction by the Commission
"other sales." .y ^ -y- y
-y y

with

Sales marked "short exempt" are Included with "other sales."

■

Volume 155

Number 4080

Revenue

THE

COMMERCIAL & FINANCIAL CHRONICLE

Freight Gait Loadings Owing Week

/*'%•'a Railroads

1 Loading of revenue freight for the week; ended May 30; totaled
795,756 cars; the Association" of the American Railroads announced
on June;The decrease below the corresponding week in 1941 was
6,027 cars or 0.8%, but the increase above the same week of 1940 was
156,636 cars or'24.5%.
,/

:: ;r

41,992

iV!;:

; a a\
\
for the week of

of: revenue, freight
May 30 /decreased
or 5% below the preceding week, ,due to Memorial Day

,cars

Atlanta,

P.—W.

/*%^^Miscellaneous/ freightloading • totaled 363,810 / cars, : a.'decrease
of 14,529 cars below the preceding week, but an increase of 24,036
cars above the
corresponding week in 1941.
f.;
1:fs

•

-r

—

Grain and grain products loading totaled

of. 1,515 cars below the preceding week, and a
below the corresponding? week in 1941.
In

32,897 cars, a decrease
decrease of 31246 ,carsi

decrease of 1,474 cars below the preceding week-,
decrease of 3,675 cars below the corresponding week in 1941.;
a

Live stock

below the preceding: week, but an

cars

Forest

increase of 2,168

cars

•

cars

the corresponding week in 1941.
Ore loading amounted to 82,886 cars, a decrease of 4,319 cars
below the preceding week, but an increase of 6,741 cars above the

corresponding week in 1941.
Coke loading amounted to 13,840 cars, a decrease of 341 cars
below the preceding week, but an increase of 122 cars above the cor¬
responding week in 1941.
All districts reported increases compared with the two cor¬
responding week in 1941 except the Eastern, Allegheny, North West¬
ern and Central Western, but all districts reported increases over
1940.

;

1942

weeks

Five

Four

weeks

Four

weeks

February.

1940

3,858.273

January—

1941

3,454,409

3.215,565

1,766

772

9,029

8,442

6,411

4,425

3,718

4,186

3,615

1,152

614

489

1,526

1,846

1,739

1,447

2,801

2,980

466

233

205

316

176

150

1,246

463

647

933

850

880

117

124

1,335

1,309

974

.2,944

1,893

290

486

721

334

Ohio—.

392 />/-

4,222

System.^ra—

•

3,872

Line....

for

the

odd-lot

ac¬

odd-lot

all

dealers

and

specialists who handle odd lots
the

New

York

Stock

Exchange,

continuing a series of current fig¬
being published by the Com¬

ures

mission.

The

figures, which

are

131

687

657

Commission by the odd-lot dealers

178

116

450

416

2,611

4,052

3,214

984

1,834

1,058

494

393

1,295

1,703

397

288

10,887

/J. .6,858

3,359

473

10,745

8,656

7,010

19.279

22,622

415

1,210

153

893

ACCOUNT

DEALERS

935

given

are

TRANSACTIONS
AND

below:

FOR

THE

ODD-LOT

SPECIALISTS

722

154

specialists,

ODD-LOT

19,177

556

and

STOCK

5,988

25,393

THE

NEW

YORK

STOCK

EXCHANGE
Total
Week ended

May 30, 1942

for week

Odd-lot Sales by Dealers:

Total

124,558

Northwestern

116,593

95,285

109,672

(Customers'

87,148

Purchases)

Great Northern...
Lake Superior &

......

15,852

12,189

12,438

2,151

2,538

2,126

3,179

17,580

19,199

16,053

9,414

8,556

3,316

3,864

3,229

3,820

28,064

V 23,783

17,809

348

249

3,034

790

1,115

843

474

h 202,900

10,381

7,611

10,743

531

448

132

20,791

18,389

3,836
•783

sales....

7,690

total

sales

7,876

549

2,923

;

3,323

/•;•>

Customers'

Number

•,

o| Shares:

1,771

1,463

2,169

2,087

Customers'

short

sales

6,983

5,345

2,478

2,914

•Customers'

other

sales

8,858

8,245

8,634

3,921

4,269

Customers'

total

sales....

International

138

243

201

442

321

1,984

2,274

1,649

2,797

2,099

124,715

126,503

103,370

56,774

54,462

Dollar

21,319

17,646

10,543

7,481

2,950

3,142

2,365

4,348

2,815

748

606

538

130

107

Alton /........

Bingham & Garfield—Chicago, Burlington & Quincy..
Chicago & Illinois Midland
Chicago, Rock Island & PacificChicago & Eastern Illinois

13,494

14,984

11,523

8,978

2,564

2,640

1,937

939

10,622

12,283

9,726

11,863

2,427

2,005

3,293

390

sales....

Total

55,640

sales
r. •'

3,324

56,030

;

■■

•'

-!■

Round-lot Purchases by
:y/•;; Dealers—

10,147

2,129

190,855,

•

$5,918,059-

sales

tOther
21,660

186,881

Round-lot Sales by Dealers—
Number of Shares:

District—

Atch., Top. & Santa Fe System-

>3,97*4

value

Short

Western

Colorado & Southern

9,239
827

•783

559

528

•1,986

1,746

2,618

Denver & Rio Grande WesternDenver & Salt Lake

(j?

1,769
6,057

Total

186

774

sales

other

3,782

410

3,308

short

•Customers'

129

20,028

(Customers' Sales)
Customers'

9,422

511

$7,335,633

Number of Orders:

564

10,571

Spokane, Portland & Seattle

Central

7,660

Odd-lot Purchases by
Dealers—

3,741

Northern Pacific

Spokane

20,913

•557

Minneapolis & St. Louis
Minn., St. Paul & S. S.

orders......^

Dollar value.

......

Ishpeming

Number

District19,418

•

Number

Chicago & North Western
Chicago Great Western
Chicago," Milw., St. P. & Pac
Chicago, St. Paul, Minn. & Omaha

2,046

1,808

4,777

3,385

3,122,773

2,866,565

2,465,685

566

175

3.171,439

274

3,066,011

2,489,280

Fort Worth & Denver

April

3,351,038

2,495,212

1,205

1,399

986

2,793,630

Illinois Terminal

1,307

1,551

1.852

May 2
Week of May D
Week of May 16...

858,904

665,547

1,778

1,388

Missouri-Illinois

2,336

985

839,253

432

837,149

680,628

967

Nevada

839,052

679,065

2,034

2,C39

1,494

125

860,802

187

North

862

782

586

795,756

801,783

639,120

488

16,340,675

14,017,582

25,446

25,874

21,098

8,980

6,283

customers'

17,674,236

shaves

marked

61,330

"short

exempt",

are

re¬

tSales to offset

odd-lot

orders,
and -sales
to
long position which is less than

479

Peoria & Pekin Union

•Sales

50C

Week

Number

ported with "other sales."

1,851

1,081

March

Four weeks of
Week

May

30—

794,299

———

The following table is a summary of the. freight carloadings for
the separate railroads and systems for the week ended May 30,

During this period 55 roads showed increases when
the corresponding week last year.

1942.

City

Northern

Western

Pacific

Southern Pacific
Total

Toledo,

Peoria

Union

(Pacific)

Western

Utah

round lot

reported with "other sales."

are

Lumber

Movement

281

1,519

11,176

13,104

483

241

168

Lumber

week ended

production

during the
May 30, 1942, was 6%

Pacific

1,524

1,571
107.598

1,247

103,958

87,773

Total

2,269

2,459

77,445

63,213

Week

Ended May 30, 1942

9,348

348
12,388

Western

compared with

1,457

249

11,083

Pacific System

liquidate

less than the previous week, ship¬
ments
were
0.5%
greater,!• new

business,

17%

greater,

according

to reports to the National Lumber
REVENUE

FREIGHT

LOADED

AND

RECEIVED
WEEK

FROM

Received from

Freight Loaded

Ann

1,578

1,626

247

6,487

14.402/ ./

2,615

4,309

9,707

9,996

7,679

9,709

8.934

260

123

173

Line

;

17,493

15,203

7,380

8,752

161

4,758

1,925

1,525

2,131

Central

45,588

Lines—

6,697

Y„ N. H. & Hartford

Midland

Valley

Missouri

166

305

2,364

1,559

1,844

1,442

2,269

2,966

Missouri

186

1,346

1,004

1,943

2,785

2,895

ments

2,074

1,833

2,359

2,007

tion;

332

New

1,057

1,092

434

214

255

155

16^

321

4,198

3,379

3,551

3,284

13,600

10,934

15,119

10,133

101

123

251

125

7,867

6,008

7,863

5,364

2,715

Orleans.

104

8,445

2,380

1,938

5,896

3,192

9,830

7,486

5,853

4,511

4,180

3,862

3,835

5,499

4,279

155

176

199

Pacific

Wichita Falls & Southern

*:•••*•

310
'•

Weatherford M. W. & N. W

Total

62,957

49,919

40,948

54,035

8.162

21,170

1,046

1,050

>410;

■

1,727

15,266

•

324

1,072

6,297

9,359
6,006 '

6,499

1,587

656

58
'

393

331

1,255V
489

561

261/

862

—

2,334

888.;

1.177

4,681

5,236

4,298

13,587

10,601

'5,406

Wheeling & Lake Erie

The

Board

nounced

4,968

4,325

4,636

4,084

clined

Governors

the

Federal Reserve

further

May

and

Board's

the

'220,751

199,978

for

seasonal

Without-seasonal

variation

37,882

Buffalo

Lake

Creek

Erie

•322

2,022.

;

6,3k)

Central R. R. of New Jersey.———

28,882'

6,435

7,789

Gauley——_—

344

-285-

5,631
r 330

1,803
•

Apr., 1942

107

—

117

Mar., 1942

115

5,700

2,366

»2,548
-

$-f

-,7.

a.a 20
18,223

15,745

Cornwall-——

642

———
'

Cumberland
.

Pennsylvania.'——-

Ligonier Valley.
Long Island

Penn-Reading Seashore
Pennsylvania

Reading
Co
'—...
(Pittsburgh)

Western

592

718

267

290

125

768

483

1,542

940

54
29

187

821

•:;v

Federal Reserve
./

■

1,443

Lines..

80,046

New

Atlanta

3,018
1,690

St.

58,092

80,776

63,889

55,260

22,338

12,171

16,597

12,351

29.497

21,609

20,590

16,594

8,574

6,928

12,490

8,814

3,926

3,904

3,137

174,874

rI——

179,949

+ 15

+ 19

■

+ 10

134,454

167,728

—

'+3

7
iy

Kansas

—11

City

Dallas

:■

—12

Francisco

San

27,834

4,662

—

57,594

56,273

same

for

tha

3 % l»e«

was

—

—10
9

—

INDEX,

+ 11

—

WITHOUT

SEASONAL

13,046

May

—

6,891

6,415

May

2,406

1,722

May

47.895

23,144

21,183

from

(per cent)f
Year to

+ 28

+ 17

"Not
to

shown

dally

sales.

+ 23

+ 18

:■/

sales

+ 33

+ 20

gross stocks

+ 33

+ 21

+ 19

+ 15

+ 41

+ 35

+ 27

+ 15

+ 11

+ 23

+ 21

+ 28

+ 21

I +

+ 15

+ 18

+ 13

+ 20

+ 14

+ 15

■

+ 10

orders

than
were

orders
a

year

18%

+ 16

+ 25

+ 26

(1935-39

the

current

week,
board

SOFTWOODS AND
*

follows: in

HARDWOODS

+ 17

Mills

May

Previous
Wk. (rev.)

456

228,436
261,377

Orders

260,260

—

United

month;

May

Softwoods

117
—

—

109

331,392

included

1941
Week

249,687

Production

....

,1942

1942

110

week

feet:

AVERAGE=100)

17-,

26%
gross

Hardwoods

the

thousands

+ 19

+ 21

year

ago;

Shipments.. 276,272

were

less.

and

for

May 30,

May 30, 1942, for the corre¬
sponding week a year ago, and for

+ 10

63%

ended

+ 16

unfilled

was

Unfilled

stocks

+ 15

ADJUSTMENT

calendar

16%

were

1942, compared with 41%

Record

128

1941

above production.

Softwoods

+ 14

May
May

separately but

average

10%

the

duction, and shipments

+ 18

May ,10.

refer

weekly

new

greater

136
114

....

Revised.

indexes

orders

new

orders

For the 21 weeks of 1942,
business was 27% above pro¬

ago.

115

____

16—

3,789

' j".

1941—

9____

13,847

and

the

Week

total..!..

19,549
:

105

ago

139,230

24,557

23,777

4,661

year

105

118

+ 17

23,638

+ 13 aa+

Minneapolis

May

—

>:+
—

—17

1942—

29,295

Total

—It

WEEKLY

Virginian

—

Louis

Total

average

the

period.

The ratio

May, 1941

Four weeks endlng-

—

—16 a

Chicago

ending-

—

Richmond

District—

—

Cleveland

—

Philadelphia

3,021

'2,426

production

May 30 May 23 May 16 May 9 May 30 Apr 25 Mar, 28 Feb 28 May 30

.i-i;—

York

—;

Maryland

Pocahontas

-One week

District—

Boston

index

124

;

System.

Union

Change from corresponding period

1,081
21,647

1,103

7.605

1,030
26,080

160%

Supply and Demand Comparisons

107

adjustment

36,697

Ohio——————

Cambria & Indiana.

684

Akron, Canton & Youngstown

shipments

compared with 117%

Allegheny District—
654

adjusted

(1923-^5 AVERAGE=100)

May, 1942

Adjusted

1935-39

week.

shipments,
an¬

.INDEX OF DEPARTMENT STORE SALESt

'• 164,948 % 129,395

seasonally

dropped to 107% of the 1923-25 average,
irt April.
"

.147,100

and

above

System

June 4 that the value of sales at department stores de¬

326

3,292

of produc¬
corresponding week of

1935-39

corresponding weeks ol 1J41;
shipments were 6%
above
tho

May Department Store Sates

8,461

4,754

632 :■

Wabash

at 142% of the average

tion in the

first 21 weeks of 1942

13,120

•

6,297

above* pro¬

Compared with the cor¬
responding week of 1941, produc¬
tion was 9% greater,
shipments,
6%
greater, and new business
27% greater. The industry stoocj

low

8,406

orders 33%

new

Year-to-date Comparisons

2,303

5,104

5,795

softwood mills., ^Ship¬
11% above produc¬

were

Reported

16,317.

10,441

;-v>:

from

duction.

•Previous week's figures.

48,105

Bessemer

42,791

1,983

36,184

55,642

Note—Previous year's figures revised.

361

-2,167

Baltimore

4,173

652
York, Ontario & Western
6,961
Louis_—1—
435
N. Y., Susquehanna & Western
% 8,125
Pittsburgh & Lake Erie.,
Pere Marquett6._————5,178
712
Pittsburgh' & Shawmut.—1'
>380
Pittsburgh, Shawmut & North1,005
Pittsburgh & West Virginia
335
Rutland...
:

'Total

379

4,352

14,274

Louis-San Francisco.
&

279

429

119

Lines

259

756

;

...

Arkansas

St. Louis Southwestern

Texas

and

229

2,332

4,136

Pacific

Texas

wood

378

/juanah Acme & Pacific
St.

2,657

Association

regional associations covering the
operations of representative5 hard¬

5,512

;

Missouri-Kansas-Texas

2,868

3,204

3,926

45,944

0,028

».

2,399

2,998

New

Nfew York, Chicago & St.

150

2,228

9,156

9,264 V

173

2,738

Litchfield & Madison

1,891

10,748

: 5,701-

•

151

4,525

International-Great Northern

2,415

2,409

—1-

——

York

1,274

3,369

4,016

2,108
5,952
•

1,110
-2,481.

262

10,592

1,330
—

203

'v-7,042

•

1,645

320

5,512

■

198

•

14,091

'" * 3,958 <f

Central

Montour

11,475

Monongahela

2,654

:;282

Western.

Hudson River
Lehigh & New England
Lehigh Valley—__

New

295

1,652

Ironton—

Toledo Shore

Trunk

Maine

9,557

302

Erie

Lehigh

6,068

7,304

Manufacturers

Island

Lines

Kansas City Southern.
Louisiana & Arkansas

2,673

2,072

Grand

2,173
•"

1,147

Mackinac—.

Toledo

206

13.476

Lackawanna & Western—

1,229

1,286

4,243

Detroit,

1,565

1,418

Hudson

Delaware

Detroit

1,270

*1806

Delaware,
&

530

Vermont—

Detroit

641

1,500

Indianapolis & Louisville—

Chicago,

1941

7,942

Central Indiana
Central

1942

1,669

Maine

1940

5,943

Bangor & Aroostook

Coast

Kansas, Oklahoma & Gulf

Connections

1941

406

Arbcr__

Boston

Gulf

Total Loads

1942

District—

Burlington-Rock

ENDED MAY 30

Total Revenue

Railroads

Eastern

Southwestern

CONNECTIONS

based upon reports filed with the

t- 676
100

;

Winston-Salem Southbound

7,120

9,146

Central—

count

13,599

23,943

System

transactions

9,654

1,171

a summary for the week
ended
May 30, 1942, of complete figures
showing
the
volume
of
stock

18,247

360

Potomac

17,834

1,123
&

Exchanger'*

Commission made public on! June

22,558

145

3,944

Northern

3,308

Trading

and

24,949

128

:
•

Southern

4,236

Securities

194

27,483
:<

•

3,035

The

22,097

28,609

_5?_

Nashville, Chattanooga & St. L.

Air

1,090

477

>■:.

Macon, Dublin & Savannah
Mississippi Central

Seaboard

571

1,673

•

Green Bay & Western

corresponding week ii) 1941.
products loading totaled 45,689

cars, a decrease' of 2,721
below the preceding week, but an increase of 6,493 cars above

2,365

1,214

South

above the

692

186

loading amounted to 11,782 cars, a decrease of 1,071
cars below the preceding
week, ibut an increase of 2,809 cars above Duluth, Missabe & Iron Range
the corresponding week in 1941. dn the Western Districts alone, load¬ Duluth, South Shore & Atlantic
Elgin, Joliet & Eastern
ing of live stock for the week of May 30 totaled 8,803 cars, a decrease Ft. Dodge, Des Moines &
of 804

796

341

Louisville & Nashville.

the; Western Districts
alone, grain and grain products loading for the week of May 30
20,440 cars,

226

11,317

Georgia
Georgia &* Florida-

Tennessee

337

Gainesville Midland

Southern

'•

277

852

Florida East Coast

Richmond, Fred.

.1941

3,696

Piedmont

1942

13,056

Charleston & Western Carolina

Norfolk

1940

331

Columbus & Greenville
Durham & Southern

Mobile &
Illinois Central

1941

722

Ala

Clinchfield

Gulf,

Connections

387

Birmingham & Coast

corresponding week in 1941.

Northern

NYSE Odd-Lot

Received from

1942

;i(

Atlantic Coast Line
Central.of Georgia..

.Loading of ^merchandise less than carload lot freight:- totaled
87,000 cars, a decrease of 9,365 cars below the preceding week, and a
decrease of 56,327 cars below the corrpsjponding week in 1941;
;
:..a
a
Coal loading amounted to 157,852 cars, h decrease of 8,131 cars
below-the preceding week;/but/ah increase of 13;345 carsjabbyejthe-

and

/,, 'v

Total Revenue

.....

holiday. £;al>

totaled

District—

Alabama^ .Tennessee
Atl.

Total Loads

'• a1*-.:

Freight Loaded

Southern

glEnded May30,!942, Totaled 795,756Cars

2223

Mills

1942 Week
373

492

265,959
X

274,916
283,495

Hardwoods
1942 Week
94

States

total.

tMonthly

Production

239,039—100%

1942

10,648—100%

figures

estimated

Shipments.

261,034

109

15.238T

143

Orders

318,108

133

13,284

125

Offer

Assistant
Cashier
of the Chase
National
Bank of New York, died on June
2 at the Post Graduate Hospital,
New York City, following a short
illness. Mr. Racey, who was 51
Racey,

received his

the
Chase National Bank since 1930
in charge of the new business de¬
velopment for the trust depart¬
ment.
For-seven years prior to
with

department of the
Equitable
Trust
Co.,
which
merged with the Chase Bank in
business

new

and capi¬
talist, died on June 2, at his home
in Greenwich, Conn. He was born
in Milroy, Pa. and at his death
was
80 years of age. Mr. White
who had been particularly promi¬
nent in engineering and construc¬
tion fields,
retired from active
business in 1928, having suffered
impaired health for a number of
year& From an official summary

awarded

the

his

vacations

Pittsburgh Chapter, Inc.,
American Institute of Banking, at
its recent annual election. Others

dent

Iron

Cornell

from

Co.;

Secretary, Anna M. Scott, Key¬
stone National Bank; Treasurer,

Joseph N. Tosh, Freedom (Pa.)
National Bank; Directors, Hugh
O.

Union Trust Co.,
Union Savings
Bank, Harriet N. Manning, First
National
Bank at Pittsburgh,
Ferguson,

Walter B. Jones,

Elmer F. Schafer,

Bank,

Johnstown, Pa. After his grad¬
uation

Trust

Colonial

Stephens,

and

Pitt National

Anne

Price,

Com¬

monwealth Trust Co.

ac¬

the West¬ Bucher as President to succeed
the late Louis J. Hauck. The Di¬
ern Engineering Co. The West¬
ern
Engineering Co. was later rectors also elected J. Edward
Jr., Vice President and
sold to the Edison-United Man¬ Sohn,
as
a
member
of the
ufacturing Co. and Mr. White Cashier,
others in originating

went

York

New

Board. Mr. Bucher has been

take

of the Department of
Electric
Railway
Installation.

ciated

charge

Upon

formation

the

Edison-General

resigned

Electric

develop

engin¬

his

own

under

the

name

1900, after having carried
his

out

from

and

by several trips to London

New

considerable

gineering
tablished

in
an

York

office

amount

Australia,
office

en¬

the

January,

asso¬

National

Lincoln

when

1939,

made Executive Vice Pres¬
a

Director* Prior to that

es¬

London,

been

has

accumulated,

and

ficiary

he may designate.
of service, it is pointed

This type

the

approximates

closely

out,

bene¬

Christmas Club plan which has

exceedingly

proven

loans
new

during

Christmas

should

expenses and
insured
commercial

the

War

credited

bank

sets

the

$18.75,

and

the

2. Net

bank

issues

1941

War

the

Cincinnati.

and

Trust

Sohn

Mr.

with

having

years,

1922

Central

the

has

been

for

bank

also

President

safe

hold

the

War

Bonds

keeping, if that is de¬

sired.

1939.

President Warns

Governor
Minnesota, recently purchased
the assets of the defunct Capitol

1913

formed

The

White Engineering Corp. as a
subsidiary of J. G. White & Co.,
Inc., for the purpose of assum¬
ing the functions previously ex¬
ercised by the engineering and

construction departments of the

parent
since

company,

restricted

its

which

Canada.

First

National

Winston-Salem

(N.C.)

Bank

announces

the election of Cecil H. Marriner
as a

Vice President and J. William

Medford

Cashier.

the investment banking field. A

of China.
Mr.

ment

Langlois N. A. M. Director
George

has

Langlois

been

reports
are
reaching this Government of the
use
by the
Japanese
armed

Coast Division of the National As¬

forces

sociation

China

Director
of

the

Pacific

Manufacturers,

liam
P.
Witherow,
President, announced

Wil¬

Association
on

June 7.

Mr. Langlois, who was Execu¬
his engineering ex¬ tive Assistant to the Director of
perience Mr. White supervised
the N. A. M., Washington, D. C.,
the design and construction of
before assuming his new
a
large
number
of
power office
houses, both steam and water duties, was selected for the post
driven, as well as complete sys- because of the "increasing indus¬

track

construction,
>.

and

bridges,

overhead
electric

and railway distribution
circuits, while a number of the

light

state¬

Authoritative

Engineering Corp. in the United
States, Canada, Central Amer¬
ica,
South
America, j Cuba,
Puerto Rico, the Philippines, etc.

tems

formal

which, he said, the State De¬
had prepared, follows:

named

trial

Coast

importance

the

Pacific

area," according to the As¬

sociation's statement.

various

localities

poisonous

noxious

gases.
I desire to make it un¬
mistakably clear, if Japan per¬

sists

this

amount

inhuman

form

warfare against China or against

paid

$31,000,000,

measure

will be meted out.

complete retribution.
pan

Upon Ja¬

will rest the responsibility.

will

They

not

only aid and assist us, they will
also guide us.
The

manpower

mittee is charged

policy

•

com-

with consider¬

ing and recommending policies,
and also to initiate policies. Its
have

will

recommendations

great weight in determining the
It

shall take.

that those who

indicated

thus

have

far accepted member¬
the committee and their
organizations > are: ;; R.
Conrad
Cooper, Vice-President, Wheeling
Steel Corp.; H. A. Enochs, chief
of personnel, Pennsylvania Rail¬
road; Frank P. Fenton, director
of organization, American Feder¬
ation
of
Labor; John P. Frey,
President, Metal Trades Depart¬
ment, AFL.; R. E. Gillmor, Presi¬
dent, Sperry Gyroscope Co., Inc.;
R. Randall Irwin, director, indus¬
trial relations, Lockheed Aircraft
Corp.; C. J. Whipple, President,
Hibbard, Spencer, Bartlett & Co.;
George
Masterton,
President,

ship

United Association of Journeymen
Plumbers

and

Steamfitters, AFL;

Clinton S.

columns

June

page

•

Commission's
ted in

McNutt on the

objectives was

no¬

May 28 issue, page 2037.

our

25%.
and

Interest

000

dividends

increased

securities

This

1941.

during

Pay On Rio Grande 6s

$9,000,-

may

Holders of State of Rio Grande
do

Sul

(United States of Brazil)
sinking fund gold

attributed to the increase in the

banks'

bonds due June 1, 1968, are being
notified that funds have been re¬

holdings of obligations
S. Government, since

of the U.

the rate of interest received on

securities declined for the fourth

and averaged

consecutive year
•

and

7. Common

capital

000,000
with

preferred

amounted to
1941,

paid

$254,-

compared

common

payment of

dividends

capital

paid

the

These

;

1,
of the

year

the

•

total of $234,-

rate

dividends

(net profits after

capital accounts.

No.

accordance

23829

re-enacted

Decree

an¬

been

re¬

with

the

Presidential De¬
of Feb. 5, 1934,
and

modified

Law No. 2085 of March

8, 1940.
Cash

payment

the

above

ratesvin full satisfaction of these
coupons is now being made upon

presentation

and surrender of
the coupons to the special agent
at 40 Wall Street, New York.

Unpaid coupons maturing Dec.
1, 1931 to Dec. 1, 1933, inclusive,

dividends) of

$201,000,000 represented 3%

The

15.05%.

funds'have

provisions

in¬

1941

rate

mitted

Con common capital showed an

total

14%

nouncement further says:

cree

.000,000;

due Dec.

at the rate of 14.35%; June
1, 1939 coupons at the rate of
14.35%, and Dec. 1, 1939 coupons

creased for the seventh consec¬

utive

coupons

at the rate of

pons

The

$237,000,000 in 1940.

amount

mitted to its special agent, White,
& Co., New York, for the

Weld

dollar face value; Dec. 1, 1938 cou¬

cash dividends and interest
on

external

1937,

1.95%;;^

other of the United Nations,
increase for the fourth consecsuch action will be regarded by
f. utive year and averaged 9.59%.
this
Government
as
though
8. Amounts available for ad¬
taken against the United States,
and retaliation in kind and in
ditions to total capital accounts
We shall be prepared to enforce

the

leaders of labor and of business

management.

any

full

the most ef¬

starting out by enlisting the

are

A speech by Mr.

taxes

partment

During

Roosevelt's

directed

assure

to fight this war. We

manpower

savings deposits.

The

increased

re¬

are

been

fective utilization of the nation's

these

that

forces

large amount of work has been
carried out by The J. G. White
:V

"authoritative

the Japanese armed
using "poisonous or
noxious gases" in various localities
ports"

The

has

activities

received

has

President to

2128.

time and

June 5 that the continued
of poison gas by the Japanese

had

sion

and by
on loans

decreases

President Roosevelt warned Ja¬

Trust and Savings Bank of;;St. armed forces against China or any
organizing for this purpose the
Paul for $103,500. Mr. Benson and other of the United Nations wiil
English company, then known
A. J. Kaufman of Appleton, Minn., be, regarded
as
though taken
as J. G. White & Company, Ltd.
his
partner
in
the
Minnesota against the United States and "re¬
That
company;• performed
a
Farms Co., were high bidders for taliation in kind and in full meas¬
large amount of work in Engthe bank's assets, principally con¬ ure will be meted out."
> land, Ireland, India, New Zea¬
sisting of farm lands in Minneso¬
The
President
told
his
press
land, Holland, France,
South
America and Central America. ta, North Dakota, Montana and conference that this government
In

The War Manpower Commis¬

for the seventh consecutive year

pan on
use

said.

and averaged 1.20% of average

Japan

On Use Of Poison Gas
Elmer Benson, former

policies,
considering policies
referred to it by the chairman. In
his
announcement, Mr. McNutt

Golden, assistant to the
President, United Steel Workers
of
America, CIO; John Green,
and bn fixed assets.
Net re¬
President, Industrial Union of Ma¬
coveries
on
securities
(losses
rine and Shipbuilding Workers of
on securities were exceeded by
America, CIO, and Walter P. Reurecoveries
on
securities
and
ther, member, International ex¬
profits on securities sold) re¬ ecutive
board, United Automobile,
mained the same in 1941 as in
Aircraft and Agricultural Imple¬
1940.
ment Workers of America, CIO.
4. All items of expenses in¬
The directives issued by Chair¬
creased
except
interest
paid. man McNutt to several Federal
Interest paid on time and sav¬
agencies
for
facilitating
man¬
ings deposits declined in 1941 power policies were referred to in

Cashier in

become

Vice

Co.

accounted for entirely

was

in losses
increases in recoveries,

The decline in net charge-

offs

throughout the State. The sav¬
ings bank, in most instances,

dent

due to larger net earn¬

was

proving

divi¬

$28,000,000 in net charge-offs.

of real
value, particularly to the small
employer who does not have the
facilities, himself, to take care
of payroll savings.
Both plans are currently be¬
ing offered by all of the savings
banks in the metropolitan area
and virtually all of the banks
Plan

ings

before

by $54,000,000

ings; the balance of the increase
was
due to the reduction of

reach

This Payroll Sav¬

Bond to him.

during 1941 to a total of $455,000,000. About one-half of the
increase in net profits during

The

soon

deposits

re¬

inception

profits

increased

dends

accounts for each

individual's

accounts

participants.

level

lowest

the

since

ception of 1936, when recoveries
and profits on assets sold ex¬
ceeded losses on assets.

payroll savings of his organiza¬
tion, with a covering list show¬
ing the names and amounts to
the individual

the

make

in addition to

dis¬

of $9,000,000

also

and initiate the

own

formulation of manpower

additional

deposit insurance, with the ex¬

the employer remits to
the savings bank, each pay day,
one
check
covering the total

sold)

assets

corded

Plan,

will

committee

studies of its

fateful steps we

were

Savings

Payroll

The

1. Net

and

concerning the activities and re¬
sponsibilities of the Commission.

facts:

its

seven

completed, will recommend to the
chairman matters of major policy

dividends of

charge-offs on assets
(losses, less recoveries and prof¬

and

production

war

transportation management when

out¬

banks

the

consist of seven

leaders

labor

leaders

The aver¬

following

the

closed

the year for
purchases.
It

greatly: facilitate

national

The FDIG reports that the tabu¬ V
lation of 1941 statements of earn¬

Bond savings.
Under

tee; ; This group, to

of income received on
during 1941 declined to a
low of 4.27%.

ings,

members

management-labor policy commit¬

from the defense

programs.

several

ment

age rate

people who want to save

regularly
their

popular

war

McNutt, Chairman of
Manpower Commission,
on June 8 the appoint¬

War

announced

accompanied

industrial

increase

put resulting

War

with such

and

name

will

of loans which has

the

the expansion

loans, reflecting

plan,

generally designated as a Vic¬
Club or War Bond Club,
the
individual,
for
example,
may deposit one dollar a week
and when a balance of $18.75

he had been Assistant Vice Presi-

connected

J. G. White & Co.
In

since

was

ident and

eering and contracting business

Bank

the

Co.

with

individual

participant,

cepted a position as instructor
The Board of Directors of the
in Physics at the University of
Nebraska and, in the spring of Lincoln National Bank, Cincinnati,
elected
Lawrence
C.
1887,-? he
joined
forces with recently

the

ings is attributed chiefly to an
increase of
$79,000,000 in the
amount of income received from

tory

among

Vice-Presidents, W. Howard
Martie, of the Farmers Deposit
National Bank, and Joseph T.

and

Co.

elected were:

college course

Cambria

Union
electer Presi¬

National Bank, was

spent considerable time en¬

the

Paul

current

and

earnings

;

operating expenses of the insured
commercial banks of the country

Savings Bond will be issued in

Walter M. Brown, of the

gaged in surveying in Northern
Pennsylvania, and later in the
Civil Engineering Department
of

State,

York

Gross

out
sav¬

states:

his

the degree of Ph.D.
During the summer

1885.

and

Society

Pennsylvania Society.

physics, receiving a fellowship
in
electrical engineering fol¬
lowed

member

Society of Civil

Electrical

York

de¬

engineering

been

Engineers, American Institute
Electrical Engineers, New

Later in 1884 he entered

electrical

the

these
plans,
the
Banks Association

Explaining
Savings

State

Under

Cornell University, specializing
in

White had

of the American

of A.M. by the same insti¬

tution.

emergency

organizations

other

Among
Mr.

from the
Pennsylvania State College with
the degree of A.B. in 1882.
In
was

New

banks

ings

building fund of the College.

Mr; White graduated

the

ago he
individual

years

largest

contribution

of his career we quote:

1884

Some

the

made

tionally known engineer

gree

carrying

member

was

father.

his

interna¬

Gilbert White,

James

head^of the

this time he had been

people

War Bond pledges,

their

FDIG Reports

the by unanimous resolution, are of¬ in 1941 were higher than in any
Board of Trustees of The Penn¬ fering two types of special War year of deposit insurance, the Fed¬
sylvania
State College,
and Bond Savings Accounts. These eral Deposit Insurance Corpora¬
tion announced on June 8. Gross
always took a keen interest in accounts, which are offered withthe affairs
of the institution, out charge, provide for systematic earnings amounted to $1,730,000,of
small
amounts
of 000, which exceeded by $99,000,000
having established the two larg¬ savings
est loan funds for: students— money and the purchase of war the previous high level reached in
$25,000 for men, in honor of his bonds each time a sufficient bal¬ 1948. The announcement further
■
uncle, General James A. Beaver, ance has been accumulated. One said:
former Governor of Pennsyl¬ type of account is designed to aid
The increase in gross earnings
was
vania; also $25,000 for women the employer desiring to install a
partially offset by an in¬
students, in honor of his mother, Payroll Savings Plan for his per¬
crease of $71,000,000 in current
Mary Beaver White. In addi¬ sonnel, and the other to provide
operating expense, so that net
tion he established the John W. an easy and convenient method
earnings increased by only $28,White
Fellowship medal and of regular savings for the indi¬
000,000 during the year.
various scholarships in honor of vidual.
The increase in gross earn¬
He

of Indiana.

years old, was a native
Mr.
Racey had been

installations
personal attention.

important

Earnings Names Policy Group
of Insured Banks Up

Special

aid

Russell

Thursday,-June 11, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

2224

must
{

remain

attached

the

bonds for future adjustment.

Full text of Commercial and Financial Chronicle : June 11, 1942, Vol. 155, No. 4080, Section 2

FRASER