Full text of Commercial and Financial Chronicle : June 13, 1946, Vol. 163, No. 4498, Section 1

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final

ESTABLISHED 1839

Edition

Volume 163

Number 4498

New York, N. Y.,

in

SAMUEL

Chancellor, University of Buffalo

to rules of the Constitution for

f

safeguarding

public interest, the
supreme function of government
Denounces representatives of peo¬
ple who are subservient to special
interests of either capital or labor
and

holds

recent

weakens

ances

The public interest
It

the

outweighs

disturb¬

tragic

social structure.

our

is

supreme.

interest

of

any

The

of the International Monetary
adopted by the Bretton Woods Conference is sooh to be

group.
The public interest com¬
prehends the interests of both the
majority and

and all the

the

tem of

minority.

The

of the moment

not

may

old

ploit or curtail
the rights of
the
minority.
A

u

which
tile

e

d

ma¬

(Continued

the

by

3217)

on page

♦Extract from baccalaureate ad¬

Capen at the

dress by Chancellor

Buffalo,

of

Buffalo,

June 2, 1946.
!
'•
.

;

.

..

3260.

■■

■

•

•:

•'

..

t.

•

.

'

Features

Regular

of

Index

and

op¬
Sakolski

A. M.

on

Does it

end?

actions

in

mean

forward

that trans¬

exchange,

a

temporary stabilizer of
foreign currency values, will dis¬
appear? Or will there come about
a new species of foreign currency

pristine

transactions, within or without the
sphere of the International Mone¬
tary Fund?

:r

England.

'

a

1.
an

as

and
The

trade of these

nations among
themselves
has always ex¬

their

ceeded

of

exchange

goods

and>

services

with

non-European

Dr. Win.

countries. Be-

Hauhart

1

fore 1914

Introduction

I.

r.

England was Germany's

best

I say "second thoughts" in the title of my paper today because

official in the office of the Minister of Reconstruction I was

privileged to assist in the prepara-^
White Paper on Em¬ deed relieved, that the document
ployment Policy which the British (supported by all the political
parties in the then Coalition Gov¬
Government
published in
May
ernment) had finally seen the light
1944.
At that time I think the of
day.
Its first words seemed
overwhelming majority of British heavy with meaning—"the Gov¬
economists were excited, and in- ernment accept as one of their pri¬

tion of the

customer, although the" ex¬
ports of the United Kingdom to
Germany ;were
somewhat
less
than her imports

from that coun¬

try. The balances were taken care
of

invisible

by

equalized in

items

through the trade of
try, If

we

were

or

triangular fashion

a

a

third coun¬

take a year about a half

(Continued

on page

3230)

aims and responsibilities the
maintenance of a high and stable

mary

J The basic purpose of the Inter¬

*An address written

national Monetary Fund is

L. E. Carpenter & Co. *

land, Belgium,France, the

many,
.

colleague on White Paper's preparation, says
its importance has become dimmed by the shortage of labor and
the remoteness of unemployment.! He cites difficulty in defining
full employment, and the stimulus to inflation resulting from such
policy. Maintains normal oscillations in foreign commerce offer
obstacles to full employment.
Warns of fundamental problems
of administering such program.
•,

uncertain¬

practical test. Does
this mean that speculation in for¬
eign exchange —a practice that
had become a recognized institu¬
tion in the field of finance, is at
an

University

Professor Jewkes,

to be put to a

Samuel P. Capen

tional, is the
instrument—established

page

t

states of Europe have
particularly true of the
part
of Europe in¬
cluding
Hol¬
is

countries, Ger-"
;v,."-,.

Wartime Director of Economic Section of War Cabinet Secretariat

portunities for
speculation, is

-

ment,
local,
state and na¬

N. Y.,

a

ties

.

Govern

British White

By JOHN JEWKES*

unregu-

its

public ^inter¬
est."*

closely interwoven.

This

Scandinavian

the

to

of. the1 various

on

hos¬

is

been

interests

t o

chinery of
foreign ex¬
change trans¬
actions, wi th

not take
action

may
.-.a r.y

1

always

economic

automatic

and

minority

The

Second Thoughts on

the

replace

Fund 'as
a reality,

a

rational sys¬

clearings

ex¬

.

western

foreign
exchange

majority

:
~

ar¬

guments for

Methodist University

Britain and Germany in peacetime have had
important trade Relations with each other and that a forced change
of Germany from an industrial to an agricultural country would be
harmful to British interests as well as to other European nations
dependent on international trade. Says policy will prove a boom¬
erang to Allies and will result through crippling dislocations in enor¬
mous economict waste.
Quotes Churchill as favoring "a living"
for Germany, arid concludes Allies- policy will put England on the
horns of a dilemma.
1
I
^

working

actual

of

Economist points out

.X';'

transactions.

Copy

a

--vys" -y::. By DR. WILLIAM F. HAUHART
Dean Emeritus, Southern

Monetary Fund on
dealings in foreign exchange by individuals and private organizations.
Holds Fund's operations, if successful, will prevent open
private dealings in exchange, and, because of rigid parities, will
force strict control by national governments.
Contends it is ex¬
tremely difficult to make this control effective if equilibrium of
fixed parities cannot be maintained, and this situation may produce
"black market" operations, which means legitimate and profes¬
sional foreign exchange speculation will be replaced by illegitimate

*

l

rv'

Dr. Sakolski discusses effects of International

Leading educator calls for adher¬
ence

Economic Unity
v/13;^,'.'';f:y

by a. m. sakolski

CAPEN*

P.

Price 60 Cents

Thursday, June 13, 1946

Government and Will Foreign Exchange
Public Interest
By

14
1946
2 Sections-Section

stabili¬

sor

zation of foreign exchange

values.

man,

Economic

(Continued

on page

by Profes¬

Woll- level of employment after the war."
before National Bureau of Here -was the formal and official

Jewkes,

3221)

read

by' Leo

Research, June 7, 1946.

(Continued

on page

State and

3226)

Aerovox Corp.*

Prospectus oti^ request

Pratt's Fresh Frozen Foods
Prospectus

Hirsch & Co.
Successors

HIBSCH,

to

.

LILIENTHAL &

HAnover

3-0600

Teletype NT

Cleveland

Chicago

1-210

London

Geneva (Representative)

Established

INVESTMENT

64 Wall

prospectus

"

Albany
Dallas

Pittsburgh
Springfield

Buffalo
Syracuse
Washington, D. C.

Scranton

Wilkes-Barre

New Haven

Woonsocket

WALL STREET

NEW YORK

LOS ANGELES 14

Members N. Y,

14 wall ST., New

York 5.N.Y.

TELEPHpNB-KECTOR 2-6300




Security

Tel.

REctor

2-3600

Dealers Ass'n.

New York 5

45 Nassau Street

Teletype N. Y. 1-576

Philadelphia Telephone:

Enterprise 6015

New York 4

Tel. DIgby 4-7800

:

NATIONAL BANK

Tele. NY 1-733

OF

CITY OF NEW YORK

THE

New England

,

Public Service Co.

Carpet Company
Appraisal

Preferred

on

120

New

York

HART SMITH & GO.

request

Stock

Exchange

Broadway, New York 5, N. Y,
Telephone:

REctor 2-8600

Bell Teletype:

Values

~

Members

Reynolds & Co.
Members

of

available upon request

*New Haven Clock & Watch Co.

Kobbe,Gearhart&Co.
INCORPORATED

30 Broad St.

Products, Inc. Com. & "A"

^Universal Winding Co. Com.

*Prospectus

& C2

Members New York Curb Exchange

634 SO. SPRING ST

3

*Firth

MEMBER'S NEW YORK STOCK EXCHANGE

Department

THE CHASE

Col

Hardy&

INC.OttOSAVIS
48

SECONDARY

H^LDEN

dealers

from

HUGH W. LONG and COMPANY

*Air

MARKETS

Pond

.

Members New York Stock Exchange

•

FINANCE

BROKERS

or

j(i

and Dealers

be

from v*

authorized

PHILADELPHIA

Baltimore

may

obtained

SECURITIES

BOND

BULL,

Brokerage

Service

INVESTORS INC'

•

Street, New York 5

BOSTON

Troy

1927

CORPORATE

*

Bond

for Banks, Brokers

CO.

25 Broad St.,.New York 4, N. Y.

request

on

R. H. Johnson & Co.

Members New York Stock Exchange
and other Exchangee

>

M FUNDAMENTAL

V
♦

.

Municipal

Liberty Fabrics of N.Y.

Nu-Etiamel
'■

NY -1-635

New
52

York Security Dealers

WILLIAM

New York"

'

ST., N. Y.

Bell Teletype NY

Assn.

HAnover 2-0980

1-395

Montreal

Toronto

ira haupt&co.
Members New York Stock Exchange
and other Principal Exchanges
111

Broadway

New

York

6

REctor 2-3100

10 Post Office
Boston

Tele. NY 1-2708

Direct

Private

Sq.

9

Hancock 37SO
;

Wire to Boston

■■:/'[■■■<■-•■
■

te.tx,

,

,

THE COMMERCIAL & FINANCIAL CHRONICLE

g!98
Trading Markets in:

By DR. JULIUS jHIRSCII

Lithograph*

Havana

Pfd.

Cora.

&

;

1920

Members

New York Security Dealers Ass'n
'Nat'l Ass'n of Securities Dealers, Inc.
I 4Q Exchange PL, N.V. 5 HA 2-2772
.

TELETYPE NY 1-423

BELIi

World

Before

debtor

a

was

;5 '<*' *

f' Vvctf

>/> '

;/

T

w

i

•

of

our

assets

foreign

1920

between

the fol¬

sents

$tock Exchange
N. Y. S
-^ ;

lowing pic-

;

WOrth 2-4230
Bell Teletype

t

/

N. Y. 1-1227

;.\,

the D

,

-V

i

-

Rogers Peet
-Iv

Common

accord-

u r e

ing t ov the
figures of
Hirsch

Julius

•

,

e

t

■■

Vanderhoef & Robinson

meht

;

,

picture would look much
only our debtors

The

Maffry,
Economy,"
November,

1.Computed according to August

Current
10-12.

of

1944, pp.

Business,

v

-

(Continued on page 3224)

Byradun Corporation
.

Home Title

A. S. Campbell

Jfgf

Common

■

A

H. G. BRUNS & CO.
York 5
WHitehall 3-1223

20 Pino Street, New

1-1843

y

jffi PONNELL & CO.
Members
New

V

York Stock Exchange

'' t-

New York Curb Exchange

BROADWAY, NEW YORK
Tel.

& Maine

Boston

Michaei JJros.

Railroad
"A"

REctor

ABITIBI

.

>'

*Prospectus

One

2-7815

UN, a continuation of the world's traditional;

power

technique is jbeing talked about.

The

the

115 BROADWAY

lines of

'i

istering

Members

For Banks, Brokers & Dealers

Polaroid

Corp.

i

s

'

5s/2000

Minneapolis & St. Louis R.B,
All

World War
!

,,

;; >•

Buckeye Jpjiubator
Consolidated Film Did.

I

-

Gude, Winmill & Co.

the
Nations admin¬

V

Members New York Stock

Digby 4-7060

^

Attractive for Retail

spirit

Macfadden

majority of the Security Council

ONTARIO PAPER

.

members toward the Franco-Spain
situation.

Publications
Common

Not only did Dr. Evatt,

reporting for the sub-commit¬
tee, actually argue as one reason

§|

tions that Spain

and Other Principal Exchanges

member but

NEW YORK 6, N. Y. J

is not

the majority

.(Continued

Securities

—

Members N. Y. Security Dealers Ass'n
74

Trinity Place, N. Y. 6

HA 2-2400

Teletype NY 1-376-377
Private Wires
Detroit

-

to

Buffalo

Pittsburgh

-

-

Cleveland

St.

Louis

;•

:'■•••

QUOTED

"

t

,

-1

.

Security Dealers Assn.

120 Broadway, N. Y. 5, N. Y.

REctor 2-7630

Teletype NY 1-2361

.

Umpire & Bay States Teleg. Co.

i*

Joseph McManus & Co.
1

...;-:'j:::t

/

Pacific & Atlantic Telegraph Co,
Southern & Atlantic Teleg. Co.

WALTER KANE, Asst. Mgr.

NEW YORK 5

Members New
■

ESTABLISHED 1890

Tel. HAnoyer 2-9300

-

International Ocean Telegraph Co.

"INCORPORATED

37 WALL STREET

Bequest

Western Union Leased Line Stocks

Bought—Sold-—Quoted
SOLD

^

■

Curb and Unlisted

GERITY-MICHIGAN Ik
-DIE CASTING CO.

—

Members New York

of the

3248)

on page

on

C. E. de Willers & Co.

UN

now a

Council itself is evidently consid-

;'V;;lTeletype NY 1-672

BOUGHT

Circular

breaking off diplomatic rela¬

for

Y.

^ Teletype NY 1-955

„

of a military alli¬
ance of victors is now being dem¬
onstrated in the attitude of the
fThis

Exchange

1 Wall St., New York 5, N.

cannot really.be
prerequisite for

determining
membership.
the

17. S, FUNDS for

York Curb Exchange

Digby 4-3122

"

.

.

:

»

: t

Teletype NY 1-1610

«

$

*

*

-

«><•>

sold

quoted

-

Arnhold and S. Bleichroeder
INC.

New York 6

39 Broadway

Tele. NY 1-1815

-

Chicago Stock Exchange

,




5

HAnover 2-9470

All Issues

bought

Tele. NY 1-2908

'

yAssoc. Gas & JJIec. Corp,

worldwide; basis. And in view of the exclusion
present league, of such neutrals as Switzerland, Sweden,
Portugal, et al., the quality of

J-G-White 6 Company

HAnover 2-0600

\Curb Exchange

is consistent with

^

Now York 4, N. Y,

i

NEW YORK

rift defining two

Common

Bought—Sold—Quoted

25 Broad St.,

York

Teletype NY 1-1140

balance-of-

MICHAEL HEANEY, Mgr.

York Stock Exchange

New

64 WALL ST.

peace on a

-Common

Members New

r*

>i'.

;■

Chicago, Mil., St. Paul &,Pac,

Grand Alliance rather than as a League of

a

Telephone BArcJay 7-0100

United Stove Co.

Simons, Linbnm & Co.

.

Frank C.Masterson & Co.

„

division into blocs

world

trend toward

Goodbody & Co.

Bowser Inc., Common

.

Corninpu

■'■r-

steering of the United Nations Organization, as evinced at its

from the

Members /V. Y. Stock Exchange

,.p Bell Teletypes—NY 1-1126 & 1127

:

Hotel Waldorf Astoria

in

Hanover 2-4850

Common

Record$raph.
:

charter-formation in San Francisco and increasingly now, along

Request

Marrisburg Steel Corp.

(Va.)

Detroit Int'I Bridge

organization or * divide us into two worlds, replied that this
might be better than appeasingly to accept the continued degenera¬
tion of the whole world position.
"It is better to have a world united
than a world divided," said he, "but it is better to have a world
divided than a world destroyed."
In other words, both within and

STEEP ROCK IRON MINES

Security Dealers Assn.

St., N. Y. 5

Common Stock

discussing Mr. Byrnes' proposal for throwing the peacemaking into
UN, and answering the objections that this might ruin the

MINNESOTA A

mxdVjompaivvj
37 Wall

Central States Elec.

in

discussed

actively

the lap of

without

Teletype NY 1-1919

clearly

more

world

Canadian Securities Dep't.

Members N. Y.

are

ings, is whether Great Power cooperation actu¬
ally -is feasible^ or whether it may liot -be better
frankly to admit that the differences.are irreconcileable, and let East and West go their own way
in their respective spheres of influence. Here—in
line therewith—the consoling thought is ever more
A. Wilfred May
frequently being expressed that; even with the
Soviet "written off" as a UN member, fthei; lineup
of Russia versus-the World can live peacefully.
Mr. Churchill, in

BULOLO GOLD DREDGING

Preferred
on

being

question

BROWN COMPANY, Common & Preferred

Preferred

&

"Allies"

Broadway WHitehall 4-8120

Bell System

forcefully exhibiting in the Council of Min¬

POWER & PAPER, Commoii & Preferred

United Piece Dye Works
Common

war

"peace-loving"

Employees

&

.

We Maintain Active Markets in

Colonial Mills
*

50

-

V„

;

Members New York Curb Exchange

.

RR

Stamped Preferreds

Members New York Stock Exchange
.

optimism.
«
j
^Unfortunately the proceedings here seem
merely to be reproducing in miniature the great

sies, and friction; and hence the only .doubt about a new.
would be the time of its occurrence!

■

S,

|

Consolidation Coal

120

:

Edward A. Pureed & Co.

is secure beyond-^he nearest iuture," well
the present -maximum level of UN

expresses

Division of the world into Russian
and non^ftussian blocs would lead to continuing rivalry, controver¬

Bought—Sold—Quoted

Bell Teletype NY

peace

worlds seems most dangerous.

Common and Preferred

? Telephone:

:

But, minimizationof the evil of a permanent

Guaranty Co.

Struthers-Wells

Jockey Club
that

.London, and confronting the coming Paris meet¬

9.8

p.—4.9
*
3.6

"Foreign Trade in the Postwar

.

,

;

less favorable if

1-1548 J.

JVlonmouth Park

being hurled by their Heads of States.

Hi

Net loss —

3urvey

Common

;

and

Hi

COrtlandt 7-4070

Bell System Teletype NY

^

1

---

York Curb Exchange

Street/New York 5

Telephone
:

/

■

Adams Hat.

HUNTER COLIJEGE, N. J.y June 12-^ecretary^General Lie's

admonition to Detroiters; that children should not bo advised

schisms which the

Amortization and repay-'

Common

Members New

|"

^

Chicago Corp,

equipped fellow-Republicans.

f

o

'

31 Nassau

( niinity on

invl919—6.5
11*8

Investment end of 1940—

i

'

Textiles, Inc.

isters, and the non-stop international invectives

.V.K'

W. & J. Sloane

branch offices

our

[ Central Public XJtiJ. 5V2

as

Commerce:

New investment

r

Direct wire* to

1J. £. Representative demonstrates bi-partisan unanation's foreign policy, but by-passes *t least Iwo better^ '

| ator Austin

(in billion dollars)1

.

NY 1-1557

La.-Birmingham, Ala.

Soya Corp.

over-

i hanging crucial worldwide schisms.

t-

p a r

n

e

m

"

v

Owned

■-

Controversies at Hunter .represent small- scale replicas of the

u. s. Foreign Investment
'

,

Mississippi Shipping

■

|

1940 pre¬

and
Baltimore

HAnover 2-0700

Moscow's attitudes toward :
itor n a t i o n
i Spain and Argentina clearly reveal use of professed ideology as a
of the world.
j
T h e, balance
j camouflage for political action. Unexpected appointment of Sensheet

25 Broad St., New York 4, N. Y.

By A, WILFRED MAY

l

cred¬

portant

Bought—-Sold—Quoted

120 Broadway,

Menibers New York Stock ^Exchange

i

e

im¬

most

,Vr/\* J-vVS ^"'i''• *''

'•••.!.'V

Steiner, Rouse & Co.

*

been

have

'

v.

' * .'

Bought—rSold—Quoted
A,

UN Observations

since

Ever

the

Organics "a"

'jv'•>!V' V"

;

New Orleans,

This sit¬
fundamentally
then

Pharmaceutical

Investors

country.

event.

that

after

Members

Pacific American

,

U. S.^-

I the

War

uation changed

'

"

,

,

y

European lending and costly lend-lease expe¬
rience, and predicts that because of our national self-sufficiency, much pf our lepding will result in in¬
creased claims abroad, with an absence of reciprocal "counter-values" for us. Warps against build¬
ing up war potential for future enemies.
Estimates prospective calls on our funds at almost $25-28
billions, and points out relatively great importance of our jdollars to respective borrowers. Dr. Hirsch
suggests following political and economic prerequisites to future loans: (1) prohibition against loans
to present or potential war mongers, or to jaon-members of UN; (2) guarantees that borrower will
not increase his military potential; (3) some general control of the money; (4) our acquisition of
political security rights within borrower's territory; (5) use of funds to raise borrower's standards.

KING * KING
Established,

*

>

Foreign trade expert cites bad results of our previous

Prospectus

1

Member

-

.

-

.

Gerity Mich. Die*
Michaels Bros.*
*

1

*'

*tend Machinery«

.«'Y

*f

Bird & Son■

,

German Republic's Secretary for Economy, and
of Iler First Reparations Commission.
-

Formerly

'

•, ■
•,
t« >v,n

:.:Vv ;v-

'-vt'

•

Thursday, June 13,1946

America's Future Role in Foreign lending

IBenguet Consol. Mines

V

*■*'+■

30 Broad St.
WHitehall

*'-1

3-9200

n

•'1

)r<k.

New York 4
Teletype NY 1-518

.■j '■

.Volume 163

Number 4498

■

THE COMMERCIAL & FINANCIAL CHRONICLE

■i-if:

Impact olTedeial Budget §§f3®ll Can Our Inflation
;
On Our Economy

Be

3199

Stopped ?

By E, M. ZIMMERMANN

By HAROLD

d.

smith*

Director, Federal Bureau of the Budget

f J

| Holding operations of the Federal Government are so large, their
impact on national economy cannot be ignored, Mr. Smith predicts
1947 budget will exceed $40 billions.
Points out major budget
Sterns are fixed, and, little saving can be accomplished by scaling
down other costs.
Asserts wartime deficit policy is threat of inflation, and a budgetary surplus is essential to combat this. Urges
retention of high taxes and curtailment of public construction proj¬
ects, and calls for Congressmen to ignore pressures, such as for GI
terminal pay, which increase government outlays.
/ >

V

mends

remedial

as

.

|
,

;

the

to

completely beyond

so

ence

the

recommende d

appropriations

nation, while not simple, is

of

little over

theless

billions,

person

a

$500
or

trillion

a

dollars.

the

If all

budget
u ests of

r e

q

of

the

t i

than

more

half

■

execu-

depart-

v e

ments

had

been
Harold D. Smith

ap¬

*An address by Mr. Smith be¬
fore the National Tax Association
j

the

Chicago

Association, of
Commerce, Chicago,1 111., June 6,
1946.

;

...

.

continuat i

can

no

budget.
As far as the Federal
budget is concerned, he cannot af¬
ford
the
luxury
of
occasional
criticism
in

of the

Adminis¬

tors

o n

7; for

E.

M.

Zimmermann

the war, about Which many

a

-

is

n

futile

move

says

All

of

their

By D. W. MATTHEWS

-'Preferred Allofmenb. List"
evil.

no

*''

-

In

let's give him

(Continued

on

that they

(the

a

recent

taxation

greater
powers for the

touched,

)

■:7\■*

.'77

Not unlike

.

*"■\<v

y-

*

control Of in¬

than

flation

well

those

as

that it make

a

actually

they

representing securities dealers,
representing banks and insurance

thorough investigation.
on

That such

3247)

tions

and

season

for

it

associations, representative
bankers and officers of the Fed-

controllingh

.

N. Y. Title & Mtge. Co.

3216) Jj

Newburger, Loeb & Co.

Public

;;




;

*

7
«

v

v

Cleveland

■

.

Chicago

New York

>

.

■

Ohio Match

/

Thiokol

Corp.!

Axelson Mfg. Co.

t

Crampton Mfg. Co.

Billings & Spencer
7 Laclede-Christy Products

Hinion

[o.m

&

Members New York Security Dealers Assn.

170 Broadway
.7WOrth 2-0300
Bell System Teletype NY 1-84
.

an

|| Haytian Corporation
Alegre Sugar

Eastern

Sugar Assoc.

Lea Fabrics

fill

U. S. Sugar

American Bantam Car

Pressurelube, Inc.

Susquehanna Mills

& Co,

V

•

•

-7^

-

Members New York Security Dealers Assn.

25 Broad St., New York 4, N. Y.

Teletype NY 1-5

,

-7r'

•

DUNNE&CO.

25 Broad Street, New York

7 7

616

4321

TRADING MARKETS

.Utility and Industrial

Telephone HAnover 2-4300

-

1-2733-4-5

St., Chicago 3

Private Wires:
■'

offerings of

Spencer Trask

^77 ' 7; v

'

St., Boston 9, Mass.

Los Angeles 7

7»

PREFERRED STOCKS

Spi^B16cks:<^5SI|

Netti Yorh Stock

Exchange

Private

*

|

STRAUSS BROS.
N.

Y.

Security Dealers

.

Victor-Monaghan Company

DIgby 4-8640
Teletype NY 1-832. 834

7 77: ;77.]: ;77f

-:!'v7777',77^7!7!^./7:^!^7 7:;y7^77-77;7777
■•/777" ■!77,7;;7';,.7 •7!^7;-:
7:.;77;7::::.7 ^ Bought'"
Sold — Quotied

CHICAGO 4

r

,

:

'7'

How. Rose STrsster

74

t

Harrison 2075

Trinity Place, New York 6, N.

ESTABLISHED M14

Teletype CO 128

York—Chicago—St. Louia

Kansas

to

Boston

Miles

&

Service, Inc.

Shoes

Incorporated

National Radiator Co.
Public National Bank &
Trust Co.

Assn.

Board of Trade Bldg.

Direct Wire Service
New

^^7

*

*

Broadway

Wire

Parks Aircraft

Sales

'WMIS.Common Stocks
Members

WHitehall 3-0272—Teletype NY 1-956

•

J

Inquiries invited fronr dealers,
estates, corporations, banks, institutions and individual holders

Exchange

WHitehall 4-6330

-7:-v-

7~

■"

"

NEW YORK 4

Teletype NY 1-2033

FACILITIES!;

for

32

Prudence Co.

15 Broad St, N.Y. 5

page

SECURITIES

Lawyers Title & Guar. Co.

Stock

■■'■■■

Boston

High Grade

rates

I UNLISTED

Lawyers Mortgage Co.

York

m o ne y

on

MARKETING

CERTIFICATES

Bell

in

.

TITLE COMPANY

Members New

interested

::TWX NY

TWX CG

Devonshire

7$74*7/!7;7'.77

to be open
of bankers'

Bond & Mtge. Guar. Co.

'

V-.7*'

PL, New York 5
•

Salle

Richmond

*

f

seems

La

generally

D. W. Matthews

the heads

page

j

,,

time of bankers' v cohven- 4"

So.

Punta

upon

(Continued

have? y 7- ■r:/
7 This is the

68

*

Request

Reilly & Co., int.

40' Exchange

7

»iVB ttre

7^

"

on

.

(Continued

pronounce¬

"7:/s

Randolph 8924

companies, are -iinable.vor^are unwilling to clean up this
situation, I propose to: recommend to the Commission

t
•

tization of the federal debt" and
for

J. F.
39

"If the organizations
as

'

'

HAnover 2-4786

-fi

1

'"••'7

Prospectus

'L

mer-1

item

.

have
been
only lightly. Most
proposals for countering inflation
call for ^topping further "mope-

PLASTICS

sale of original-issues constitutesT

custom and usage;

dpitself,denounced,

news

.

bankers) have

Teletype NY 1-1203

shot of ad-

a

page 3239)

being
considered, hut/whether they are or not, the businesses
affected ought; to'take imniediate^
steps to put an end
to this evil.
; -v
'
v

; ,v :

come into public print
within the .past several weeks. The all ^important ; matters;^of
production,- price
controls
and

belief

the

HAnover 2-8970

the

ments have

to

New York 6, N. Y.

expressed-^ graven concern rabout' these practices
which tend fp reestablish the odious
'preferred list' of
the" 1929 era. Whether such
practices are in violation
of the laws administered
by* this Commission is

nouhcements about controlling in*
flation by
monetary means. A
such

39 Broadway

keeping the ef¬
disease from showing

have

era! Reserve Banks to make pro<*

now

Common

Members New York Security Dealers Assn.

on

dealing with, original offerings;
Jame^ Af Trevor; ,Jri;KDirector7Qf^^^^ Trading and Ex¬

storip of criticism at aome, future date for
not having controlled inf lation ithrbughc f hose monetary methods pf
combating in- . • 77
I ^
that

Dye

L I. GOLDWATER & Cd

existing customers. SEC
jgfives no relief to rfnderwritfars |bagged,!! With sticky issues. Should
adopt a hands-off policy. Attempt to do through NASD what the

Are bankers inviting a

more

Piece

change Dmsipn of tbe Securities and Exchange Commis¬
sion, was quoted as saying; ~
§ |
"Many thoughtful-persons it arid out of goveriiment

Maintaining monetary measures or interest rate controls alone are h;
not effechye in curbing inflation, Mr.Mathews contends best remedy I
is full production.
This has. not been. accomplished, because of]
strikes and -other reconversion disturbances. Says higher interest •;
rates have not been effective in inflation control," and. suggests ^ohe|i
1 pattern of interest rktes be maintained with reference to government
debt, and another lor commercial borrowings. Sees mors strikes
ahead thatjnayslowdown production.

or

61 Broadway

are

chants giving considerate treatment to'

"

|

.jpf

Integrated in trade

Commission may not

§

efforts

Siamese Twins
•

S I

Pfd.

MATERIALS CORP.

citi¬

complained lppdly, now rate
in" third ~or': fourth -placfe.
They
(Continued on page 3233) {

Hotel

Estate

United

on the: body of the pa¬
No attempt -is made to re¬
cancer itself.
One M. D.

tient.

matter

Real

gl7;7

externally

useless.

a

Schulte

group of economic doc¬

gathered around a patient
sick with the cancer of in¬

very

of fact, there is
nothing whatever!
OPA lean dp to stop inflation it-

zens

thereby lead¬
ing the public

d.

As

his obligations as a citizen toward

dozen

a.ii

-v.

the budget have been discharged.
Those New Deal budgets before

strongly,

wholly

Cadillac

.

tacle of

Washington with the
righteous feeling that

w

so

OPA

Book

4-6551

Commodore

Nation's capital is now
witnessed the sorry spec¬

being

the

Telephone WHitehall

our

fects of the

Citizen

President, Bondex Inc., New York City

stress

At

infla t i b

Average

As Inflation Curbs

they

about

of

longer afford to neglect his public

Production^. Monetary

flatten

this

noise and fu¬
ror

Securities Dept.

Obsolete

WALL STREET, NEW YORK

99

Such measures deal
only
with symptoms and cannot touch
the disease
itself,.-. :7: ■' v i'

concentrated

resultant
are

any

of

glad/

do is to curb the .EFFECTS of in¬

STOPPING

tration

sums

All

IT

v-7:77;'.7';

flation,

would fail at its source! ';

Mr.

—and we're

a physical
impossibility.
price control, rationing
regulation of production can

flation.

process

WE BID

that

the purpose of

heated

even

guts to do it.

he gives his private budget. If

as

Because

political
party-has the

never¬

to

amounts

It is

All
and

this wereTriot so,-the: democratic

would

larger,
Quantitatively, such

and

comprehensible

now

renew

self.

em-

no

who will give his public
budget at least as much thought

proved, this
sum

have been

this?

incomprehensible. Yet their mean¬
ing for us as individuals and as a

Congress

is

phatically
"NO." Why is

experi¬

our

(1)

measures;

swer,

individuals that they are'

President and

as

Says actual inflation

;

answer when the
question'is viewed from an acamedic viewpoint. - When looked at
realistically and practically, how77777 77'7:
7-. 7'.\' ever, the - an-'*'
—--—-—

submis-^

sion

only effects of inflation, and

as

."YES" is the

Director, the Bureau of the Budget has approved

for

~

itself, is attacked.

ANO COMPANY

stop

faith in dollar; (2) cut
government expenses to
"marrow"; (3) reduce national debt in
sizable amounts; (4) refund short-term into long-term bonds;
(5) raise and broaden taxes; (6) remove subsidies; and
(7) return
power over money to Congress.
; >

?

v

long

as

to

to roughly $400 billions and that for thirteen
years "we have been
following pattern laid down by Germany in 1914-1923." Recom¬

,

An inquiring reporter recently discovered that during the seven

years I have been its

;

n°t inflation

..

•

.

inflation is futile and useless

}S|S3:

»licHTtnsTfin

||

,

Writer holds noise and furor about continuation of OPA

>

City—Los Angeles 7

'

7

'

upon

request

C. E. Unterberg&Co.

"

Y.

"

Telephone:
BOwling Green 9-7400

Prospectus

Teletypes:

NY 1-375 & NY 1-2751

Members N.

Y.

61 Broadway,

Security Dealers Ass'n

New York 6, N. Y.

BOwling Green 9-3565
Teletype NY 1-1666

Telephone

" THE COMMERCIAL &

~

*'

3200

Thursday, June 13,1946

FINANCIAL CHRONICLE

BUSINESS BUZZ

Prospects for Higher

]
Prices of Selected Stocks

ACTUAL MARKETS
IN 250

ACTIVE ISJUES

American Bantam Car
Amer. Window Glass*
&

Com.

Pfd.

Assoc. Dev. & Research

Automatic Instrument
Barcalo Mfg. Co.

Cinecolor

Chicago R. I. & Pac.

"

"

Old Pfds.

,

Deep Rock Oil
Diebold Inc.

District Theatrest

Douglas Shoe*
Gt. Ameiv Industries* >

Hartford-Empire Co.*

Jessop Steel
Lanova*
Mastic
:

Asphalt

Michaels Bros.t

Michigan Chemical
Missouri Pac.
Old

"But if your

Pfds.

agents stand that still how do they; get
any business?"

Mohawk Rubber*
Moxie

NASD Board Discusses Controversial Proposed

N.Y. New Hav. & Hart.
Old

Pfd.

SEC Allotment Rule at Bretton Woods

|

commended, it is generally believed in investhouse circles, for refusal to be stampeded into quick action.

ment

Purolator ProdL*

Bowser Inc. Com. & *Pfd.

Upson Corp.*
U. Si Air Conditioning

*Crowell-Collier Pub.

lengthy consideration to the Securities & Exchange Commission's
Proposed Rule X-15C2-3 but to have taken no final action on the

Sunray Oil
Conv. Pfd.
Sylvania Industrial Corp.

Art Metals Construction

Thomas Steelf

dilemma between the legitimate interests
opposi-^—
tion to the rule, on the one hand, ;!*»,
Support the
and pressure from the SEC for
quick action, on the other hand,
RED CROSS
the Board is to be commended, it
is generally felt in investment

matter.

Bought - Sold - Quoted
V

*

'XI«•

Prospectus available on request,

','■r

*:■

fX'KAY

-V

Goodbody & Co.

Alabama Mills*

Textron Wrnts. & Pfd.

and Other Principal Exchanges

Broadway, New York

105 West Adams St., Chicago
;
Teletype NY 1-672

115

.

Telephone BArclay 7-0100

,•>.

it

in

was

a

refusal to be

house circles, for its

Members N. Y. Stock Exchange

>v

as

of the securities industry's

J

Vacuum Concrete

-

Caught

*
'

meeting at Bretton Woods is understood to have given

Grinned Corp.
Oxford Paper Com. & Pfd.

American Hardware

T aylor-Wharton*

Aspinook Corp.*

stampeded along a course which
drastically

would
custom.

trade

alter

Furtherxdiscussions

on

The COMMERCIAL

'Reg. U. S. Patent Office

the
William B. Dana Company

,

question seems likely.

25 Park Place, New York 8

Standard Com'I Tobacco

American Gas & Pow.

New England P. S. Com.

Puget S'nd P. & L. Com.
Southeastern Corp.

Standard Gas Elec.

Editor and Publisher

^Capital Records

William Dana Selbert, President

'j-V''V""-'

♦

•"m-'.h'-X'.

♦

"'Xr-.V"*.•:Vj*V**= **-.r*v;f, / J1'
Prospectus Available
,

J «f; *

•

t

Thursday, June 13, 1946
•' •'

Haile Mines

♦'

Published
•

Bulletin

or

Circular

upon

every

*Prospectus on request

twice

week

a

Thursday

(general news and advertising issue)

FIRST COLONY
New

Members

52

CORPORATION

Security Dealers Association

York

New York 5, N. Y.
Teletype NY 1-2425

Wall Street

Tel HAnover

2-8080

:

>,

J.K.Rice,Jr.&Co
Established 1908

Members N. Y. Security

REctor
Bell

„

Dealers Assn.

2-4500—120 Broadway

System Teletype N. Y.

V

1-714 ;

fProspectus Upon "Regno*'
*

f

.

William D. Rlggs, Business Manager

*Avon Allied Products

fLe Roi Company

fStatistical Study or Special Letter on Request

,

Southwest Natural Gas

Great American Industries

Shops

"

; Herbert D. Selbert,

Corp.*District Theatres Corp

f Citizens Utilities
'Y'v'O

"

U. S. Envelope

*Dumont Electric
,vPrincess

*

V''" -'

REctor 2-9570 to 9576

.

Iowa Pub. Ser. Com.

.

Publishers

1

Cent. States Elec.. Com.

and

FINANCIAL CHRONICLE

Victor Monaghan

Spec. Part.

Association of Securities

The Board of Governors of the National
Dealers at its

Richardson Co.

Meeting

Governors should be

N. 0. Texas & Mexico

ir-and every Monday

.

,

(complete statistical issuer-market flftun
tation '
records, i. corporation,
banking,
clearings, state and city news, eto.)
Offices: M35

Other

S. La Salle St«
111.
(Telephone: State 0613)j
Gardens, London, E. O., Eng.,
land, c/o Edwards & Smith.

Chicago

3,

1 Drapers'

Tagamet

ACTIVE MARKETS
Copyright 1946 by William B. Dana

'Doyle Mfg. Com. & Pfd

*Upson Company

Prod.

*Wellman Engineering

Textiles, Inc.

*Temple Coal Pfd
*

Great American

Industries

Mtmbtri N.Y. Security Dealer;Assn.

Descriptive Circulars on request

Reentered
ruary

25,

York,

^Shatterproof Glass

Central Paper
^Tennessee

Company

Soya Corp.

Products

(New)

Y.,

Direct Wires to Chicago arul I'hiia.

ENTERPRISE PHONES

Buff. 6024

Seligman, Lubetkin & Co

,

Canada,

Central

Cuba,




Members

41

Broad

New

York Security

Street, New York 4

Dealers Association

HAnove

$27.50

America,

$29.50

per

per

year;

Spain,
year;

Continental Europe (except

Australia and Africa,

South

Mexico,
Great

39 Broadway,

N.Y. 0

DIgby 4-2370

Teletype NY 1-194S

and

and

Britaixu

Spain), Asia.

$31.00 per

year.""

Other Publications

Bank and Quotation

Incorporated

Bos. 2100

at the post office at New
the Act of March

under

1879.

•

Ilartf'd GUI

second-class matter Feb.

Subscriptions In United States and
Possessions, $26.00 per year; in Dominion
of

Columbia Aircraft

1942,

N.

3,

as

Record—-Mth.S25 yf.
Monthly Earnings Record—-Mth.. .$25 yr.
NGTE—On account of the fluctuation!
In the rate of exchange, remittances fog
foreign subscriptions and advertisement!
must

be Hiade in

New York fundi.

Volume 163

Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE

A

■

F

America

It

3201

■■■■

"1

Baltimore Stock Exch.

Responsibility

s

Elects Brown President

And World

BALTIMORE,

MD.—J.

Dorsey

Bro^ri has been elected President
of the Baltimore Stock
Exchange.

Edward J.

Armstrong (Stein Bros.
Boyce), W. Carroll Mead (Mead,

&

Miller

&

,

Weillepp
erning

Co.),

M.

and »Walter

named to the Gov¬

were

I. ;

Committee.

^

At the meeting of the Commit¬

tee,

John

Watts

&

Redwood,
Co.)

Jr..-(Baker,

elected

was

Vice-

President; Edward, J. Armstrong,
Treasurer; Mrs. Helen P. Garrett,
Secretary and Assistant Treasurer,
Miss

and

Jessie

Secretary.

Johns, Assistant
;;

CANADIAN

SECURITIES

Bonds
Direct Private Wire Service

COAST-TO
New York

-

Chicago

St Louis

-

•

COAST

-

Kansas City

-

Los Angeles
WILLIAM ST., N. Y. 5

52

HAnover 2-0980

Bell Teletype NY

L.

E.

Carpenter

STRAUSS BROS.

General Crude Oil

32

Board of Trade Bldg.

Broadway

NEW [YORK 4

Virginia Water Service

Teletype NY 1-832-834

E. H. Rollins & Sons

•--\r

ST, LOUIS

Boston

Chicago

San

-

-

DU MONT LABORATORIES

■

Baum, Bernhelmer Co.

HIGGINS, INC.

KANSAS CITY

MILES SHOES

LOS ANGELES

Teletype NY 1-490

-

•

L. £. CARPENTER

Pledger & Company, Inc.

Street, New York 5, N. Y.

Philadelphia

ffr'* '-3ft;

J

*

Tel WHiteball 4-4860

s<:■

White & Company

Incorporated

<.

CHICAGO 4 C

Harrison 2075
Teletype CG 129

DIgby 4-8640
;

40 Wall

'

Toronto

Montreal;

Members New York Security Dealers Ass'n

Universal Camera
West

New York

1-395

Francisco

THOMAS STEEL

Bouglit^ol^--Quote(l

American Insulator

Jeff.

Corp.

Lake

Nickel Offsets,

Sulphur

Com. & Pfd.

Ltd

Prospectus

Request

on

of Delaware
Common

Jonas & Naumburg

Common Stock

Earned 460 per share in

Lane Cotton Mills
Corp,

Bought—Sold—Quoted'

1st Quarter of 1946.

J.F.

Stand. Fruit & S/S

Against 170 in 1945.

Com.

&

Pfd.

Statistical

study

on

T. J. FEIBLEMAN & CO.

PETER BARKEN
32 Broadway, New York 4, N. Y.
Tel. WHitehall 4-6430

Tele. NY 1-2500

74

Members New Orleans Stock
Exchange
New York 4, N. Y.

New Orleans 12, La.
Carondelet Bldg.

41 Broad St.

Bo. 9-4432
Bell

*

* ^

•

'

Telephone*

.

"

•

,

'

If
I

there

is*

of value

even

—

a

we

faint trace

buy 'em

Firth

Oil

Co.

$6

■

f'

Exploration Co.

Suburban

Propane Gas

Corp.*

Tennessee Gas & Transmission Co.*

Recordograph

Bought

—

Sold

—

Quoted

•'

|

.*'■*!'.

\:r

JS?

i --

*

.

a

Common
Upon

Request

Prospectus on request

FA St IV &
York

New

George A. Rogers & Co., Inc




,

Common

Members

I I Montgomery St., Jersey City, N. J.

Chicago

New York

Associates

Quotations

New

Broadway, New York, N. Y.

Private Wires:,?;;';
Cleveland

■■

SI Eastern Stiger

Bought—Sold—Quoted

42

,

Pfd.

Petroleum Heat & Power

''V.;/-

United Public Utility

(No Mining Stocks)

•

Carpet Company*

Globe-Union Inc.*

Master Tite & Rubber
Common

,

1-2733-4-5

St., Chicago 3
TWX CO 616

Los Angeles v

Getchell Mines
;«»

%

U
Boston

,r

Consolidated Electric &: Gas

STOCKS

;/

Tel—NY-1-493

OBSOLETE

BONDS

Teletypes

NY 1-375 & NY

York 5

NY

TWX

Salle

Devonshire St., Boston 9, Mass.
;
•
R chmond 4321

68
-:
•

:

La

Randolph 8924

Trinity Place, New,York 6, N. Y.

BOWling Green 9-7400

2-4785

So.

39

Established 1914

request.

Rein, & Co

Exchange PI., New

40

•

HAnover

Selling about 10.

York

New

Curb

York

Cnlfee

&

CO.

Stock

Exch.

Exchange

Assoc.

Sugar

Member

Exchange

Established 1888
64 Wall St., New York 5
Phone HAnover 2-7872 Tele. NY 1-621

MEMBERS
63

N.

Y.

SECURITY DEALERS

Wall Street, New York 5, N. Y.

ASSOCIATION

Bell Teletype NY 1-897

120

WALL
TEL.

ST.,

NEW

YORK

HANOVER 2-9«12

THE COMMERCIAL & FINANCIAL CHRONICLE

3202

f Thursday, June 13, 1946

Anti-Labor Legislation Leads toi Gardner Urges Sound
Case Bill Veto Emphasizes Need
Monetary policies
For Immediate Labor Legislation
Sialism

|

Under

By ELISHA M.
....

J
j

i

9

.;99\,;f/;

-

Consulting Economist.-

'

.

FRIEDMAN

j
1

esses

j

«

of justice for

relevant

trial by combat."

foreign experience.

We

*

/

;

sued the

are

-

following statement:
drafted to the Office of

was

Under

Secte9-999r^

•

tary

of

9::•;

the:;

Says all rights labor lias
Treasury three
.gained would be almost completely Wiped out if these measures are
months;: ago
^enacted and they would compel individuals as well as groups to 9: by 9 Secretary
Vinson
and.
-obey will of Government. ; Holds President has been ill-advised
President Tru¬
and misguided and defends both miners
strike and the royalty
■■

demands of Musicians'

urged to profit from
99-

>

I

Veteran labor leader expresses
opposition to Case Bill and Presi¬
dent's promised emergency-measure.

Mr. Friedman vigorously contends that, in view of the President's >
veto of the Case Bill (H. R. 4908), immediate legislation is required U

Secretary of the Treas¬
O. Max Gardner yesterday is¬

ury

U

WOLL*

Vice-President,. American! Federation of Labor

to reconcile the interests of labor with those of the rest of the community, so as to avoid disintegration of our economic and poli- >
tical system. In support thereof he quotes Justice Brandeis, who
said that "it is the function of the legislature".to "substitute proc-y

(

j

MATTHEW

By

r

man.;

Union.:

Opposes - totalitarianism in both

organized labor and ■ Government dnd; accuses "ruling class"; of

r

seeking to .curb growing power of labor.
The President's veto of the Case Bill has solved no problem.
The country is still in the same labor crisis under which public in¬
I want to take your mind back
just a little to the development of
dignation pre-<^
organized labor and to indicate that labor for the past one hundred
cipitated
the spokesmen present no alternative years has had a
<§>Case
Bill. proposals to the present anarchy labor
program
International "Union is true of
Some
altern¬ in the relation of- organized labor
changing trorn
every
international
union,
and
ative-' legisla¬ to' the
unorganized community. time to time,
what
is
true
of
international
tion is needed Wage increases are being demand¬
it is true,
unions is true of local unions and
The modified to
immediately. ed by union after union.
likewise of our federated bodies*
A
labor
law country is clearly in a crisis. \ 9
n e w
condi¬
eity, state and national and inter¬
passed a year
Who pays for the increase of tions
arising,
national.
*
from now will Union
wages? Everybody who does but ever going
Thus we are formulating pro¬
not meet the not
get the increase, viz: farmers, on and on to
grams constantly1, and I wonder
problems disabled veterans, widows, pen-: br i n
g
labor
sometimes if we do not minimize
which
now
sioners,
city
policemen, V state up higher and;
our own conception of that which

I

to

in this

say

wish

t i

conn e c

o n

that I was not

f

„

.

bedevil

the

Today the
country
has
n o t
a " labor

Elisha M. Friedman

'-S-K."

policy,

but

only expediency and appeasement.
The evil results of such

a

lack of

policy may be beyond remedy in
JTune, 1947. A spiral of wage in¬
creases, forced by strikes, cannot

health

forward

office

country.

greater

inspectors, Federal postemployees, etc. Dishwasti-*
in unions, now receive more

ers,

than unorganized doctors at a Los
Angeles hospital. Factory porters,
in; unions,, now receive very much

than

more

teachers

in

unorganized

school

The

differ¬

Detroit

not greater

ability
or
skill or social value, but the
power of unions over society.
•
ence

measures

.

be undone
we

12

The facts

must act.

dant

months later.

well

and

abun¬

are

known.

•

But

Over

a

thousand pages of testimony have
been printed in the labor hearings
of 1946 alone.
But

all

:99

'

legislation

to

unions is opposed by

should

regulate

labor lead¬

; The opposition presents no
logical arguments, but only vitu¬

ers.

peration.

It threatens individual

Congressmen.

Technological advance is due to
invention, engineering and man¬
agement. Its fruits should not be
preempted by an organized mi¬
nority.
The funds of ; -progress
democrati¬

Instead of increasing wages
to the favored few, the benefits
should go to the entire commu¬
nity in the form of lower- selling

cally.

prices.

Petrillo defies the

Government.

distributed

be

rates

wage

(Continued

raise

on page

3219)

the

Envelope Co.

has

beeh: .done

t h

the past. "

rewards

e

activity
jointly of em- v
ployers and of

Yes,

Matthew Woll

§

"

employees. /

American

of the

several

Labor,, and see if there has
not been a constant and persistent
arid consistent labor program. See
labor

development
of
organized
from feudalism, from his

hands

shackled, from his right to
organize denied; from conspiracy
doctrines, applied almost to every
activity of labor,
tus of free men;
no

to our sta¬
and then say we
now

our

present having

you

meet in Conven¬

dozen

a

We

of

enacted
,''
'

havd

'That has taken

:

our

anti-

in Colorado
going even t<5 the extent of re*
quiring organizations to become
incorporated 5 in order that they
may carry on collective activities
in behalf of their members; in
states,. requiring

licensing

of. officers to represent

organiza¬

tions,'requiring strike votes to be
taken by secret ballot, not under
union official guidance but under
state guidance.
/
,

And

so

they have attempted
regulate and control

instrumentalities

the

SOLD

—

have

approved at your last meet¬
ing and to design a new program
or
a
modified program to meet

QUOTED

and

gram

which

we

our

to

come

free

as

workers to

free

as

use

appoint m ept
any
other

120

i
i

Corporation

economic interests.

*

Federal office,
After

;

BROADWAY, NEW YORK 5, N. Y.

Telephone: BArclay 7-5660

:

Teletype: NY 1-583

address

Cityr June 6,

Union, New York

recent conference with

a

Secretary-elect Snyder and Pres¬
ident Truman, and at their joint

I feel it my duty to
services on the same
basis of my original acceptance,
which was that my health, happi¬
ness
and r acceptable
services
would determine the period of my
insistence,

continue my

stay in
If I

office.;;

am

t.

helpful to the least de¬

the preservation of faith
credit and currency of

gree in
iii
the

America, I shall be amply• repaid
efforts. The sustained ton*
in and solvency of our

fdr my

fidence

tremendous
national, and

country is a matter of

to

importance

our

relations

and. weli

,

for this great cause I
sthnd. ready and willing to help
to{ the utmost of my ability*
fare, and

Now M. C Bittner & Co.
The firm

name

of Bittner & Co,

hsis been changed ta M. C. BittneT^
&

Offices will
Of-

Co., Incorporated".

.continue at 80 Broad Street.
'icers of the new

organization are

and
Vice-

Murray C. Bittner, President
Treasurer; Celia M. Bittner,

President, and Toby Erlitz, Sec¬
retary.
|-

:
•

•

.1

'

IIIIIIIMWi— II

11

.

■

.9

,9:

;

-

;

advance

: 9:

Luke, Banks & Weeks

*1

'

still many remain and

by Mr. Wpll be¬
fore the United Hatters, -Cap and
Millinery Workers International
♦An

;0. Max Gardner

to

men

Many other restrictions have1
changing conditions for the fu¬ been proposed. Fortunately, labor
ture? And what is true of your has overcome most of them, but

New York Hanseatic

a

for

candidate

....

tion? Is it not to review the pro¬

BOUGHT

been

international

threefold char¬

a

have

I,

never

union: organizations,

likewise to

Why do

the

on,

acter"; 6ne, attempting to regulate
the internal affairs- of our trade

presented in

program.

:

legislation. ;

other

program^

educational, fieldr
our social field, our political field,
inspect every activity of human
relationships, and there you will
find labor in the past as well as of
LooK" to

only

governments.

over

that

labor
•

state

had

have

states

Federa¬

tion of

the

faced with dangers,

part of our Federal Government,
but likewise on the part of our

V

/

and A

'

we are

it: is true; dangers not

'

{Read the history of the* Ameri¬
can
labor movement, study the
annals

by : urging ,«riew

and forgetting the old

and that which has been done in

>

of

the

United States

a

programs

have had

Higher

Besides, the union

in

parti¬
cipation Vin/

candi date

a

for this office

exists in

still

toward

antagonism

number of states

a

organized ' labor

because

they have

come to realize, par¬
ticularly the ruling class, that the
i (Continued on page 3218)

Luke; Banks : & Weeks, 52

Wall

Street, New York City, members
of the New York Stock Exchange,
admit Frances Weeks Ryan

will

and Raymond

nership

vonEssen to part¬

of June 20th. Morton
retired from the firm ori

as

M. Banks

'

June 5th.
/TO INVESTMENT DEALERS
.

}
s

;

*9..

-;<• ■■■;}■

:

•

•;

'

-

~

Vj;'••'.*1'•9uJ'i\H' -VA*

Send for Circular CC

9"

*

on

-

'

}-

Industrial Electronic

*

A Sound Railway Equipment Issue

Bought

Common Stock

•

Blair F.

Sold

—

Quoted

South Spring Street,

~

•;

Harrisburg-Pittsburgh-Syracuse-Miami

''

•

members of

,'.established

was

Bond

: 1914;

T

in .the past

District

with

Company: and Paul J. Ma-

.;99:;:99; 9'

rache & Co.

74 Trinity Place, New York 6, N. Y.
\i

■Telephone:

Tele. NY 1-2178

*

He

HonRgsE SIkgsim

1

9

NEW YORK 5,
!

associated
& Co., 639

has

the; Los Angeles Stock Exchange,

Claybaugh & Co. 9

WHITEHALL 3-0550

—

dividend payer

Members Philadelphia Stock
Exchange

999_ 52 WALL ST.,

CAL.—George

become

Frost

R.;

'

MAGOR CAR CORPORATION
A quarterly

LOS ANGELES,

v

with Gross* Van Court

Common Stock

i

Van Court

Frost At Gross,

Corporation

«

.

BOwling Green 9-7400

Beach

-v

>1-*

,9

' '
<
Teletypes;
{
9 NY 1-375 — NY 1-2751
.

51

Philippine Mining Stocks
'

}

s f

99-9.99.-9 Atok

9i

KOLD-HOLD

linn Coach & Truck

Manufacturers of Refrigeration Plates

Expresso Aereo

Common Stock

*

id 99

|

.

Bought

GO.^Jnc.

Members N. Y. Security Dealers
Ass'n
111 BROADWAY, NEW YORK
6, N. Y.
BArclay 7-0570
jsjy




—

Sold

—

Quoted

R. G. ILSLEY & CO.
Member of National Association
of Securities Dealers, Inc.

64
i-to26

Wall Street,

New York 5

HAnover 2-1140

Balatoc

999;yiv;;9^

Mining

j;' Benguet Cons. Mines
Big Wedge Gold

Equity Oil

Mindanao Mother Lode

Utah Southern Oil

Super-Cold Corp.

inquiries invited

F« H« HOLLER &

9

*Kinney Coastal Oil J

■

'

9!.t

*Circular

•

.

.

on

■

•

,f.!

'

Qvotations

"

request

and information

Furnished

on

Request

JOHN I. O'KANE JR. & CO.

JAMES M. TOOLAN & CO.
67 Wall Street, New
Telephone

HAnover

Teletype NY

York 5
2-9335

1-2630

f 1

Established

1922

Members N. 7, Security Dealers Ass'n

42 Broadway, New York
DIgby 4-6320

Teletype NY 1-1525

(Volume

163

Number 4498

•

THE COMMERCIAL & FINANCIAL CHRONICLE

ings, which is below the general
for electric stocks.

average

While the prospectus
comment

makes no
it is

Road to Better labor Relatione

dividend policy,

on

By FRANK RISING*

understood that the President has

General

Manager, Automotive

indicated that he will recommend

;

Tucson Gas, Electric Light & Power

,

4

Another

mon stock

j

*

-

the recent series of:
utility operating company ibomon June 7 when 147,000 shares of th!e

offerings appeared

Tucson Gas, Electric
Light and Power

Company were offered by ia
syndicate headed by Blyth & Co. and First Boston,
Corp., at $40 a
share (net to
company $37.81).
The company had been owned bjy
Federal Light
Tra6tidh^C6mpany,^iny|1t!irnn controlled by^' Citids
Service Power &
Light in thef*——' ; v"•
v • •
. V-'
Cities Service
Company system.'
company itself. ; However, if the
law

comPany supplies Tucson

>

(the second largest citv in Ari¬
zona) and environs with electri¬
city and natural gas and ' also
serves an
adjacent rural area with
electric service. Population served
with

electricity

about 92,000.

A

estimated

71%

and

from

29%

laneous.

■

electric

natural

important

largely

-

*

a

customers

are Consolidated Aircraft
cation
center),
Cortaro

Eagle-Picher

1%

Electric rates

are

before

put

$600,000.

at

j'

be

the

Consolidated Edison Co, of New

■L

1st and

to be sold

other funds will be used to refund

$304,240,000. outstanding bond is*
sues;--:. ^:vU3
:,v- Jj:

'»«

rate

.' r

the

J. Charles Groshot has

with

the

parent

com¬

counter and other

selves."

'

offices

have popular¬
ized a nation¬

ruination

not

require

detercost when

of

nearly 630 a share.; On the
hand, there will be a sub¬

or

many public
"

other
.

in

footnote

a

prosper

tus,

the

system

are

trade

in1

our

on'page' 28 of thd
1945 share earnings

exceeded

$4

a

share.

The

be

*: 3

'.

some

time

result only

al

iri

W

\

name

.

Frank

due

to

the

lower

rates

or

natural growth).: On the basis df
v

and

through

prefer

laws

despite the strong turn of public
sentiment in the same direction^ I
believe that the unions will con¬

,

Worse still, we
*An address

have bpilt our-.

the

fore

Fertilizer

National

to

regulate the unions, and

brutal meth¬
I really don't
Administration can

tinue their truculent,

by Mr. Rising be¬

ods for

As¬

time.

some

the

how

see

sociation, French Lick, Ind., June
11, 1946.

(Continued

;

on page

3242)

1

offices

,kf"t
Preferreds & Commons

Washington Properties 4
Commodore
.

Chi., Milw., St. Paul & Pac<

.

/,;

.

M.

H.

St.. Louis-San

Duluth, So. Shore & Atlantic

St.

Missouri Ppcific

Seaboard Air Line

Western Pacific

Y., New Haven & Hartford

H. D. KNOX & GO.
Broadway, N. T. 4

27 Stale

Tel.

I

Tele. NY 1-86

'

70 Pine

1A

,

New York 6
-Bell

v

in

*

:.

Telephdne

IDEAS FOR

Curtis
v

'

for

all

a

1-2763

r:

Unlisted

"■V.-'5

Securities

.

'-1

Banks

and

MEMBER#

'■

NEW YORK STOCK
NEW YORK

'■''-'ik-

SAN

Dealers.

CURB

FRANCISCO

LOS AN-GELES

Common

&

EXCHANGE

COMPANY,

Inc.

ffl

■

..

PftANClSCO

Alloys, Inc.

Codv.

Steep Rock Iron Mines, Ltd.
V.T.C.

Clayton Silver Mines
Great Western Exploration
*Can. Western Lumber Co.,
*Circular

N. Y.

Co.

Ltd.

request

Conv. Preferred

on

request

Reynolds & Co.
165

on

■

MAHER & HULSEBQSCH
Brokers

&

SPOKANE

SEATTLE

Preferred

Preferred

*Prospectus

YORK 6.

□ Water Company Stocks

) :

^Raytheon Manufacturing Co.
$2.40

'*Jr:

'

STOCK EXCHANGE

SAN

Conv.

•

•'••• -;v

-yK •.*..•

□ Preferred Rates to Dealers

Detroit Harvester Co. Com

90c

.'

.*'

v.'

\

EXCHANGE

.*

■

□ American President Lines, Ltd.

STOCK EXCHAN8E

NEW YORK

,

England Common

IN THE JUNE ISSUE:

□ WeSt Coast Retail Stores
f

Kaiser sl Co.

brokerage service

HODSON&

NEW

>

DEALERS"

Whitehall 3-7830

Teletype NY

Mohawk Rubber Common

Gilbert J. Postley

Teletype NY 1-609

/

Security Dealers Ass'n

"
Render

Co., Inc.

Street, New York 5, N. Y.

WHitehall 4-4970

1926

S. Weinberg & Co.
Members N. 7.

Wisconsin Central

Western

G. A. Saxton &

St., Boston 8

Capitol 8950 :

Tele. BS 169

Established

Francisco

Southwestern

Louis

N.

if?

N. Y.V Ontario &

JTel. Dlgby 4-1388

Railroad

Rutland Railroad

Denver & Rio Grande West.:

Rhodes

Nazareth Cement I)

11

Old Colony

j

Chi., Rock Island & Pacific

Hotel

American Fell Co.

;

are

&

TRADING MARKETS IN

11

*SoIar Aircraft Company




the recent awakening
and the trend toward

Despite

of Congress

1

R- Hoe & Co. Common

Wire

*;

Labor Union Policies

others rather than be self-reliant

*

Direct

him to sup¬

use

port .socialistic experiment.

lean: oil

to

who

men

and' courageous.

Acme Aluminum

r:

selfish

the name of "unemploy¬
compensation."
We have
taught people to look to someone

Central Ohio Light & Power Com.

BROADWAY.

,j

labor

afraid, and a ready
unscrupulous and

the

for

dupe

'

ESTABLISHED 18781

29

v

under

Artiericad Vitrified Products

».

direct private wire

equipped to

Victoria Gypsum

60 Wall Street >

tfiose^ markets where

Northern New

is bewildered,

Rising %

ment

many

of

unchecked until the working man

."se¬

and
doles

great

the field

In

relations,
these practices are glaringly ap¬
parent. Sophistry, falsehood, and
shameful sloganeering have run

v-

dole under

the

outrageous to liberty,

as

e

unem¬

future

using this fear propaganda to suj>port
actiohs
which
otherwise
would be rejected by the people

as

Works

Tennessee Products
:

offsetting gain in earri-

some

ings

Paine, Webber, Jackson
''

a

ratd

located.

'

for

Richmond; Cedar

adjustment. * for
all
tap*
changes, would apparently have

especially

various

our

firm

AV;

else to shelter them until today d

admitted

maiiager of the industrial stock
and bond department.
,

after

utility! companies

the facilities of

Krugi j

Gleland Admits

stantial saving in taxes under the
new
law.
Based* on data buried

active market in the stocks of

an

over-the-

securities, from
at 60 Broad Street, New
City, where he will make his
headquarters at the offices Of
BieLRusselt& Saxe.
VT;f

public utility stocks
maintain

in

York

"original
first devoted to public
service" the $3.50 estimate, the stock was
but merely the original cost to the retailed at about
11V2 times earn-

We

dealer

'■

stefulness

our¬

and

y
<

%

of

ployment, depression and black
despair. The government declares
one
"emergency" after another,

,

recently profligacy and

"owing

savings, would be equivalent f0
about 530 a share, reducing esti¬
mated earnings to around $3.50
(although there might, of course;

does

i.■t

because

of fear,
where
frightened daily by

is

stories

which in 1945 amounted to $91,800

Litigation is now in prog¬
ress, which has been carried to
the Supreme Court of
Arizona, as

jected to a public referendum;
Apparently the order of the Com¬

M

„

meaning¬

broker

by about $125,000 which
amount, after adjustment for ta'x

be sub¬

horrible

p r o v idence

w

world

a

everyone

d

n

left military service* and will re¬
sume his investment businesses

Federal" Light & Traction,

pany,

selves

.

that
a

less

Walter C.

1.73

These darnings, however, do n^t
adjust for tax savings due to corisolidation

believe

are

James D. Clelarid has

Legislature which be¬
operative around the end of

can

j'"-

And Lambuth to Firm

Act of the

to whether this law

"

■

Investment Business i i

fund

1945.

^

■*

<&-

uraged
people to

einco

thrift-

with

Of

w

-

Kruge and .Earl Larn^
buth to> partnership in James
After giving effect to rate Clelarid & Co., 50 Broadway, New
York City.
Refunds; •
Mr. Kruge has been

On

ment. We have

J.G. Groshot Resumes

1.67

—

For a good many
years, we have been on the wrong road not
only in labor relations but in other avenues of sociological experi¬

our

r''-

(a)

reduction

a

v.

2.04

T_—^

1937

into effect
with' 1945

annual

an

s

2.44

cut for 1946 exceeded the 1945 re¬

mission

refunding mortgage bonds,
through the competitive
Proceeds,
together
with

•

of employee edu¬
cation: (1) a better system of
channeling information} (2) a better
timing and flexibility in making statements; and (3) a greater use
of spoken word in
communicating with employees.
program

York, Inc., announced June 12 the

route.

Holds task of management is
educate the worker by telling workers reasons for
policies. Says
Wagner Act has been misinterpreted as not permitting employers
to address
workers, and lays down as
to

state

2.33

2.30

government is afraid of the anions.
~

curity"

original legitimate
cost to the utility, less accrued de¬
preciation. This was based on ah
came

current yield

average

electric power and light stockfc.

(a)

1938

a

M
p? The Arizona Commission early
in 1946 issued an
opinion and
order providing that the value Of
property for rate making purposes
should

on

2.74

—

1939

giving effect to the

refund, would effect
estimated

$2.55 (a)

1940

March 1, 1946, a new schedule of

compared

pro

therein

1941

to customers ordered
by
the Arizona Corporation Commis¬

was

a

follows:

1942

refund

bperations

as

stated

as

1943

age revenue per residential KWHt
in 1945 being 2.660. V This
was,

which,

on

1044

aver¬

sion, amounting to $475,000.

up

1945

Farms,

to

not set

share earnings

(modifi¬

however, after giving effect

amount to less than

forma basis in the prospectus. The

served

low, the

company

of the total. The depreciation

earnings is

Southern
(station
and

are

the

to

amours to about 21%, (i>f
?-■.
gross plant.' j ■
dis¬ J Unfortunately,' the summary of

Mining,

Railroad

cost

at

resetfe

shops) and Home Ice Company.

rates

above

plant account is currently

identified

as

company,

as '

j j

■

(subject td< some accounting re+
servations) and intangibles so far

about 88% of
its power being purchased from
the Parker Dam <U. S. Bureau of
■Reclamation), the balance being
produced by the company. Among

,

initial construction basis.

stated

gas.

revenues

$■ ■?, -i'y ;if

company is

-Pacific

Commission

State

FPC; the latter has, of
always favored strictest applica¬
tion, of the original cost idea oil
The

mercial, 22% industrial and 11%
irrigation pumping and miscej-

the

the

well

almost simultaneously, and is

pro¬ proposed issuance of $290,000,000

it

the
course,

are

revenues

breakdown, of electric

tributing

that

effect,

should seek the cooperation of

an

&t

Shoyvs 30% residential, 37% corri-*

'b; the

vides

in

as on the Dayton Pow¬
Light offering which came

&

»

long as Administration
pursues its present capricious course/ more bitter strikes are just
ahead, since every labor leadeT realizes administrative branch of

.This is about the

.

rate

same

er.

5%.

'

Gross

*

derived about
operations

is

continues

would' be

and Aviation Parts Manufacturers!

Mr. Rising lays blame for present labor relations situation
largely
to Administration
policies and asserts as

rate, the same as paid in
1945; on which basis the yield
$2

a

3203

Members New York Stock Exchange

Broadway, New York

120

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

EEctor

Teletype NY

In

Dealers

Securities

Telephone

*

NY 1-2613

Branch
113

Hudson

N. Y.
Teletype

New York 5,

WHitehall 4-2422

2-8600

1-635

&

Investment

62 William St.

St.,

Office

Jersey City, N.

J.

COMMERCIAL & FINANCIAL CHRONICLE

THE

3204

Curb Membership Changes

G. F. Brewer Joins Staff

OALTIMORE

Bay way

Terminal

George F.
Brewer has joined
the staff of
Wm. Blair & Company, 135 South
CHICAGO,

Davis Coal & Coke

-

Drug

Emerson

La

Rayon

1

B

Class

;

v.

Salle

New

Bedford

—

Street, members of the
and
Chicago Stock
Exchanges. Mr. Brewer has been
serving in the U. S. Army. Prior

Common

New

ILL.

f777';

he

■■

Lazard

with

was

Freres & Co.

7^7777''7771

•

t

Members New York & Baltimore Stock

CALVERT
Bell

and others from silver

manufacturing states have not yet indicated
of proposal. The proviso increasing the Treasury's
buying price of silver within two years to its "monetary value" of

to John K.

partner in Luke, Banks

a

City.

& Weeks of New York
;

the

At

^

Edwin

time,

same

acceptance

,

H.

$1.29

/

to

membership

the

on

Exchange.

...

ST., BALTIMORE 2

Iowa Power & Light

PHILADELPHIA

United Light &

Dwight Mfg.

Sionx City Gas
Preferred

Company

77

Railways Co.

Preferreds

f

Standard Stoker

'

,

& Electric Co.

and

Memos

MOINES

DES

York, Philadelphia and
Angeles Stock Exchanges

Los

1420 Walnut
New York

Utica Knitting

Street, Philadelphia 2

•

•

h

Los Angeles

-

Herbert M.

,

Private Wire System

doubt

to the

as

course

ing to Bermuda.

Bratter

compro¬

•

being the

one

special bill in-

Pittsburgh, Pa. ;P;? Hagerstown, Md.
N. Y. Telephone—WHitehall 3-7253

DETROIT

some

The compromise as it left the
Appropriations Committee for the
mise
in
two Senate floor contains a provision
separate meas¬ for the sale and purchase of silver
ures, the other by the Treasury at about 90.50
v e r

Members New

IOWA

9,

Bell Tele. DM 184

least

sil-

identical

BUILDING

EQUITABLE
Phone 4-7159

the

to

the Senate the

"

;

Common

BUCKLEY BROTHERS

!tfi3 Co.|||i||

.

,

Company.

Request

on

•

and which Senator Theodore F. Green
Post Office of the
silverware-manufacturing
Departments state of Rhode Island will pursue
when the compromise comes up
Appropriation
Bill for. 1947. on the Senate floor. According to
The reporting Senator
Green,; this cannot be
of
this
rider until some time^ after he returns
puts before from a short trip he is now mak¬

Preferred

Reda Pump

'

Treasury

American Phenolic

Co.

'

.

WASHINGTON, D. C., June 12-In a Saturday session on June
8 the Senate Appropriations Committee agreed to report out the com¬
promise silver<^-

INCORPORATED

BOSTON

1

However,
50% tax expected, though

■:

rider

WHEELOCK & CUMMINS

•

expected to be deleted from compromise.

opposed by Treasury.

asso¬

Curb

an ounce

removal of silver ceiling prices as well as

Koehler of the New York firm of

Teletype BA 898

York Telephone Rector 2-3327

New

Weeks,

ciate

DES MOINES

Exchanges and other leading exchanges
S.

Exchange

the

membership ^ on

from Morton M. Banks

f

Silver Senators agree to compromise raising Treasury's sale price
of silver from 71.11 cents to 90.5 cents per ounce, but Sen. Green:

proved the transfer of a regular

Marx & Co. was elected

STEIN BROS. & BOYCE

6

regular meeting held June 5th ap¬

Compromise Advances
By HERBERT M. BRATTER

;

York

thereto

Noxzema Chemical

Silver

York.Curb Exchange at its

New

Chronicle)

(Special to The Financial

of the

The Board of Governors

Of Wm. Blair & Co.

Thursday, June 13, 1946

)V

between

month

Philadelphia, New York and Los Angeles

during

two

a

period;

year

and

discontinuance

for the

thereafter

V 7 "
troduced last of the Treasury's power to sell
by Senator Abe Murdock silver at below its monetary value
a group of other silver
and a proviso increasing the price

of Utah and

Mills

Electromaster, Inc.

state Senators.

request

furnished on

Prospectus

Dealer Inquiries

Despite the action at which the Treasury must

ac¬

Appropriations cept newly-mined domestic silver
(Continued on page 3249)
,
Committee, there still remains at

o^

Invited

the

Senate

■

„

Descriptive Analysis
'■ op

.

Botany Worsted Mills pfd. & a

Empire Steel Corp. com.

Manufacturing Corp.

request:

■■

Shelter

,;v

;

;

Urge Rejection of "Silver Bloc" Proposals

Vinco Corp.

Report furnished on request

Sterling Motor Truck

Inquiries invited

-Warner Co. common

.

Mercier, McDowell

Penna. Engineering Co. com.

& Dolphyn

So. Colorado Power Co. com.

Members

du Pont;

Homsey Co.

MILK

31

BOSTON

HANcock 8200
Y.

N.

Detroit

Stock

4

Buhl Bldg., Detroit 26

Cadillac 5752

H. M.

Tele. DE 507

National

OFFICE

Phone Rittenhouse 3717

r»

Inquiries Invited

white, noble & co.

General Stock & Bond
10 P. 0.

Corp.

r

^

•

•

ver

and

St., Philadelphia 3

i

to

Private

Teletype GR 184

Phone

7-1202

COrtlandt

Square, Boston 9, Mass.

a

"There

re¬
Walter

levy

E. ; Spahr

7 <7

taxpayers,

\'

-

silver.

TRADING MARKETS

Boston

.:

Preferred

is

Louisville Gas Pref.

*

Boston 10

Private N'w YJ

Tephone

BROKERS and DEALERS

UTAH

MINING

STOCKS 777

Incorporated
1st

Floor, Kentucky Home Life Bldg.
LOUISVILLE 2,

Established

•"

■7*vV7;*77'..L':

'

Members St.

-

.K

Members Salt Lake Stock

Exchange

KENTUCKY

Stock Exchange Building

77

Salt Lake City, Utah

•

Phone 5-6172

Teletype SU 67

Bell Tele. LS 186

Long Distance 238-9

INC.

Exchange

-77"

is

,

,

more

no

validity in

argument of the silver bloc
that silver should be bought and
sold at its nominal monetary

valu¬

$1.29 per fine ounce,

of

or

price above the open-com¬
petitive market price, than there
would be in an argument that the
at any

in

BROKERS

V'V'--

'* V '

Louis Stock

1898

W. H. CHILD,

St. Louis 1. Mo.

BANKERS BOND ££i

7 ;7?:.

the

used

paper

street

olive:

: 7

yalid reason for

is
chiefly a by-product in the
mining of copper, lead, zinc, and
gold; and this fact makes any
subsidization of silver producers

rency

England Lime

Federal Street,

'

INVESTMENT SECURITIES
509

™

73

-r

Winn & Lovett Grocery

M< gowan-Educator Food Co.

Da) ton Kaigney & Company

•

Stix & Co.

Merchants Distilling Co.

'

Hollingsworth & Whitney 77

New

:

■

f

no

subsidizing 7 silver producers in
this and other countries. Silver

ation

Girdlcr Corporation

Graflex Inc.

:

■

American Turf Ass'n

]7777,'

Railroad Holding Co.
1

•■-■S

777,77777.77^7^77;

doubly inexcusable.

ST. LOUIS

American Air Filter

Monetary Policy, urge
to

"There

Edison

*

world markets,

SALT LAKE CITY
LOUISVILLE

Boston

•

only price at which the
Treasury should purchase silver is
that determined
in competitive

,

Teletype BS 373

trading markets

1!

"

"The

t

manufacturers and users of

N. Y. C.

to

will

on

Congress

producers

sult in a
on

PH 30

Penny packer 8200

mittee

subsidy to sil¬

.v"T777-'7--7 -7r7..777...-.7

1606 Walnut

MICH. TRUST BLDG.
Phone 94336

'■

"We, the undersigned, members
of the Economists' National Com¬

on

that

;

BOENNING & CO.

>

Members Detroit Stock Exchange
2

ment follows:

grounds

amounts
:

RAPIDS

Co. Com.

So. Colorado Power Com.

M. J. Wuittall Assoc. 2nd Pfd.

Telephone Lnertv 8817

v.

American Wringer

GRAND

-

..

complete text of the state¬

States Treasury.

V

the

7

The

Congress

'

Marathon Corporation Com. v.

DEPENDABLE

■

-;

-v.

price of silver
be rejected by

Sugar Corp.

7

>.'-v

reject the proposed
legislation designed to increase
the price at which silver is to be
bought and sold by the United

•

ACCURATE

\

•

Southern Advance Bag & Paper
7-/'.'f*::;77'7: Common
77777:77':,

in

interest

current

a
'

Boston Sand & Gravel ,7

;

••

\vh-.r" ■ -v■ 4

have

Michigan Markets

Eastern Utilities Assoc. Conv.

May 10 by 66 members of the Economists'
Monetary Policy, of which, Dr. Walter E.

*•".

proposed
legislation de¬
signed to increasethe

We

•;

U. S.

on
on

Secretary,
urges that the

Telephone CAnal 6-8100

Nu-Enamel

Committee
■.-ii--:>£

u

a h r
i s
Executive

Tele. PH 73

f

^

S p

Phila. 2

Stock Exchange Bldg.

GRAND RAPIDS

A statement issued

Byllesby & Company

PHILADELPHIA

MASS.

"Teletype BS 424

i

Exchange

STREET
9,

on Monetary
Policy petition Congress and President to reject Silver-Bloc pro¬
posals to raise price of silver and recommend a return of free
market for the metal. Prof. Spahr replies to criticism.

Sixty-six members of Economists' National Committee

;•

make paper

to

cur¬

§hould be bought and sold

the

market

at

the

nominal

value of the piece of
manufactured from this
*
■"... 77-

monetary
currency

paper.

"The proposed

silver legislation

is solely an attempt on

(Continued

the part of

on page

3237)

REctor 2-5035

NASHVILLE

Utah Power &

New England Markets

UTICA, N.Y.

SALT LAKE CITY

Light

Oneida Ltd.
Preferred

Common
Retail

New

England

Secondary

Coverage

Distributions

•

Bank and

•

•

"

Wiley Bros.
INCORPORATED

'

'

Utah-Idaho Sugar

Utica & Mohawk

Amalgamated Sugar

Insurance Stocks

Cotton Mills,

Inc.

INQUIRIES INVITED

EDWARD L. BURTON

Inactive Securities

F. L. PUTNAM & CO., INC.

Stocks

*

Portland

LIBttv

Providence

2340




INVESTING COMPANY

ESTABLISHED 1899

INC.

160 s. Main street

.

Springfield

MOHAWK VALLEY

8c COMPANY

Bonds

77.Franklin Street, Boston 10, Mass.
Tel

Masius to

Partnership

CLEVELAND,

OHIO

—

Skall,

Joseph & Miller, Union Commerce
Building, will admit Harold M.:
Masius, member of the New York
Stock Exchange, to partnership in

Mr. Masius
business as an in¬
dividual floor broker and prior
thereto was a partner in Strauss,
the firm

on

July 1st.

has been doing

Industrials—Utilities
^

Skall, Joseph to Admit

Nashville, Tennessee

Salt Lake City
BELL

SYSTEM

1,

TELETYPE

Utah
SU

464

238 Genesee

St., Utica 2, n. y.

Tel. 4-3195-6-7

Tele. UT 16

Phillips & Co.

and Robert
admitted to
limited partnership in Skall, Jo-*
seph and Miller on July 1st also.
Sidney N. Amster
Hays Gries will be

.■■■<' i;

Volume 163

Number 4498

THE COMMERCIAL & FINANCIAL
CHRONICLE

The Case Bill Veto Message

The

President tells Congress bill is utterly different from his requested
temporary legislation. Says it would not prevent or shorten strikes
Y and urges a joint committee to investigate entire field of labor rela-

...

11 | | | Jf ^ ?
-\

Treasury expert points

i

system and
rents to

tions

This

'

mained

signed

&
l

Bill.

had

ors

re¬

his

days.

In

the

his

President

In

ex¬

plained

h i

s

the veto, tak-

ing

the

up

measure

sec¬

by

tion. He again
recommended

;

it he f passage

President Truman

■I;ary measure which would outlaw
Y strikes in government operated
industries and which would per¬
mit him to draft workers in these

,

industries if required. After hear¬
ing the message the House of Representatives, within 30 minutes,
by voting 255 against 135 to over¬
ride the veto, failed to produce
the required maj ority by the slen¬
der margin of five votes.

The complete text of the Presi¬

dent's message as reported by the
Associated Press-follows:
To the House of Representatives:
I

both

the

of

returning herewith, With¬
out my approval, H.R. 4908, en¬
titled "An Act to Provide Addi¬
am

The

duce

domestic

turmoil.

I

cannot

agree with the Congress with ref¬

to the results that would
be achieved by it.
erence

Lists criticisms of corpora-

I trust that there will be

outstanding domestic prob-

lem confronting this country to¬
day is the maintenance and in¬

I.

no con¬

fusion in the minds of the

bers

mem¬

the- Congress or in the
minds of the public between this
bill and my request on May 25

the solution of

our

$1

A

per

$2.65

be

used

share.

per

of

this

for

offering

expansion of

the corporation's business in other

countries and for working capital.

,

SCHENLEY DISTILLERS CORPORATION
NOTE—From time

to

time, in this

space,

there will

appear an advertisement which
hope will be of interest to our fellow

we

Americans. This is number 130 of a series.
t
SCHENLEY DISTILLERS CORP.

YY

equity
also

fiscal

and

to

its

adequacy,

impact

on

of

*An address by

(Special

The

to

BOSTON,

but

Rosen

has

Federal

consumer

Mr. Keith be¬

fore the National Tax

Financial

MASS.
opened

Street

to

connected

was

hill. I have not considered it from
the standpoint of whether it fav¬

Chronicle)

b,y the Government

and

It

r

to
'jY;"1 ;.:y''vY

admittance

announce our

,

i

Y:>

office

under the

hours.

All

this

guiding spirit of Mrs.

Redenbaugh, well-

Thousands of lines

and since then,

war

planning

f.

on

in' business.

have been

we

/:

written,

were

;

undergoing

unusual conditions of supply and

*

'

*

S

i

Y
i

for the time when the

^

consumer

Will stop asking for "hitch-hikes'!
and i will -again be
sitting in, the

us

Y

?

;

driver's seat—very
definitely! But Y
all of this
planning—or

Prescott
y1

&.

-

y

,~

certainly

Co.

&
j

'-<•*'

v,

1

v-•

"

,

men,

y

'

men,

Cleveland Stock Exchange

previously,

Commodity Exchange, Inc.

salesmen;
to

|

man-

note,

appreciable refers

any

to women. Here

ence

Exchange {Associate)

men;

We have failed

power.

Chicago Board of Trade

'

y

most of it—-has been confined to

a

Members
New York Stock Exchange

they

are—•

the

BUILDING, CLEVELAND-rPRospect 6300

V
'

after

demand, American business has
been ■ training its sales
personnel

*}

associated with

now

:

r

and

In the past he
Jackson &

gals—accelerating their pace vyY
and stepping along with the male
,

workers—they just won't be left
behind. *Y
>
/
1 '

i

membership in the
.vYy'-v/. YYYY^Iy ■■YVY:'Y Y:YY'Y. •:Y ;

charm and poise, telephone
courtesy, proper posture and the
right kind of clothes for the office
ers,

•

C. Adams & Co.

i y
' Y .V'

*>: £

,

;::::•,

Alberta Greene

,

>Y

v

•.

Y;.v Y;•

,/Y

known women's counsellor. '<

1

'

is

"music

stenographers, receptionists,
clerks, typists and messengers have
just taken a course in how to get
along with the boss, handling call¬

with

MR. MAX A. HEWITT
*:•

'0

that

Six hundred and fifty secretaries,

in the

pleasure in announcing that

101-116 GUARDIAN

pleased to

point,•

Abraham
offices at 24

'

in

charm

Rather, it's the charm of
femininity—in business. "Person¬
ality in Business!" Let's get to the

While

3240)

page

the

not

hath."

during the

limited to strikes against
the Government. It did not apply
on

it's

post-war

We take

in the Schen-

ley executive offices, in the Empire
State Building of New
York, and

v

was

(Continued

f There's a new charm

—

engage

By MARK MERIT

erick

New York Curb

are

| ft'

Co., J. S. Bache & Co., and Fred¬

Association,

Chicago, IU.^ Jiuie 5, 1946.

present-day labor problems con¬
stitutes the key to production, this which the President by proclama¬
present bill must be judged in the tion declared that an emergency
light of whether it will assist in had arisen which affected the en¬
reducing labor strife in the nation. tire economy of the country.
given careful study to the

H Personality

Abraham Rosen Opens

ture consideration must be
given
not only to such matters as its

industries i which had been taken
over

,

class

value

par

proceeds

to

are

Introduction

,

,YYY'

The

The level of Federal
corporation income tax rates has of late
become a matter of considerable
concern, not only to businessmen
who have an obvious interest

of production. Y; We must
production, or the effects of for emergency legislation.
will be felt by : At that time I requested tempo¬
everyone of our citizens. "Strikes rary legislation to be effective
and
lockouts
are
the greatest only for a period of six months
handicaps lo attaining vital pro¬ after the termination of hostilities
and applicable only to those few
duction.
crease

We

of

share, of the Pan-American Ex¬

depend on revenue needs, since present corporation taxes
y' yield large returns.
::;YY/Yyy Y<,

ruinous inflation

^ I have

as avspecu-

shares

stock,

port Corp. at

changes

will

have

as

offering

are

110,000

common

hold in principle, but not in
practice, and, after reviewing proposed
changes, concludes there is likely to be a closer coordination of cor-;
poration and individual income
taxes, and more drastic

securities business.

Not What He Requested

Disputes, and for other

Inasmuch

lation

Nielsen anil TinsBey
With Stewart, Scanlen

purposes."
.

taxes to avoid deter¬

majority of our citizens will be
benefited by this bill, the ques¬
the percentage of
tion presented is whether it will
profits remain¬ spending and private investment.
help to stop strikes and work ing to them after taxes, but also A tax system which bears too
to many business and
Government heavily on
stoppages and prevent other prac¬
consumption, or which
tices: which, adversely affect -bur economists who have an interest discourages
investment/
will
in the overall effects which
the
(Continued on page 3232)
economy.
I have reached: the conclusion taxation of corporate earnings at
high rates may have on levels of
that it will not.
I have tried, as the representa¬ production and employment in the
tive of all the people of. our na¬ postwar years. It is generally rec¬
tion, to approach this problem ob¬ ognized today that the ease with
wnich we shall be able to balance
jectively, free from the emotional
SAN FRANCISCO, CALIF. —
strains of the times and free from post-reconversion budgets depends
Stewart, Scanloii & Co., Mills
on our
ability to maintain a much
every
consideration except the
Building, members of the Y San
welfare of our nation and of the higher level of production and Francisco
Stock Exchange,
an¬
world which is so dependent upon employment than that attained in
nounce
that Charles C. Nielsen
any
previous peacetime period.
our recovery to a full peacetime
and Paul M, Tinsley have
joined
But high level production and em¬
economy.
their staff. Mr. Nielsen was
pre¬
ployment depend in"turn on
higly viously in the export-import busi¬
This bill was undoubtedly passed
level consumption and investment*
ness.
Mr. Tinsley has been en¬
by: the members of the Congress both of which are
directly affected
in the sincere belief that it would
gaged in commercial banking. Y
by the way in which tax burdens
remedy certain existing conditions are
distributed. Accordingly, in
which cause labor strife and pro¬
designing the postwar tax struc¬

tional Facilities for the Mediation
of Labor

Koellner & Gunther, Inc., New¬

ark, N. J.,

as

the

not the great

or

desirability of having equitable

(

determination

Glass A Stock Offered

!|y
Y;

-

sec¬

tion

includes

which

question whether

for

reasons

public,

not it benefits

or

management and labor.

the

message
:

or

point of whether

desk for nine
-

harms

management.
I
have considered it from the stand¬

un¬

,

on

harms labor, or whether it

or

favors

"

-

(1) they discourage risky investment; (2) they distort
business judgment;
(3) they deprive industry of needed funds;
and (4) they impose - double taxation.
Contends criticism may

President Harry S. Truman on June 11 submitted to Congress a
message, in which he gave notice of his veto of the Case
Rela-

,'

: -

out importance of corporation taxesintax

consumption and investment.

tion taxes

.

lengthy
Labor

llEITH*

By E. GORDON

-

Division of Tax Research, U. S.
Treasury

\

Pan-American Export

Corporation in the Tax System

:

tions. Analyzes measure section by section, and concludes that no
one can be forced to work for
private employers. Renews request
for his emergency legislation. -

3205

v

Seriously speaking, it's interest¬

■

NEW YORK STOCK EXCHANGE

ing to note

-•■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■I

a...a..a.a..,|j

our

feminine workers

afc

Schenley; their greater friendliness;
their better posture at work at the

desk; their

Stanley Heller &

Co.

est in

Members New York Stock Exchange

op

t

ception desk.

Members New York Curb
Exchange
30 Pine

Street

V

the

\

AN ORGANIZATION

was

FOR THE PURPOSE OF RENDERING
SERVICE

■

'

"

'

THE MELLON FAMILY

v-

OFFICERS
'

'

"

^

'

an

all

was

on

the "boss's

t

$

Certainly it makes the busi¬

ness-hours

j

|H

.

*

'

-

•

opportunity as
provided in this course, just

time."

'/VYY'Y;Y:

IS INTERESTED

such

concluded. It

Iff CONNECTION WITH INVESTMENTS
IN WHICH

sl'

-

Schenley is among
pioneers in offering its feminine

workers

l'f *

Telephone WHitehall 4-9200

dune 10, 1946

''

-

We think that

T. MELLON AND SONS

New York 5, N. Y«

Teletype—N.Y. 1-1934

warmer courtesy Nover
'
telephone; their genuine inter¬
helping the caller at the re-'

the

ANNOUNCING THE FORMATION

more
pleasant, and
surely it is beneficial for the worker

and for the corporation.

*

richard k. mellon. president

We

.

announce

the formation
of

alan m, 8caife. Vice pres.
arthur b. van

E.

JAMES D. CLELAND &
COMPANY
,

,

r

as

,

successor

to

bu8k1rk, vice pres.

b.clarke. Treasurer

-

.

hughes,'

BOARD OF
e. b. clarke

"

offices

at

-

....

;

I..

..

:

pa u ip mellon
richard

50

Broadway, New York 4, N. Y*

i.

James D. Cleland
-

..h

.

•„-::

June 13,

1946

;**/•!.'

•*

Y

Walter C. Kruge
'V

'

;• %.:■

'>

Y/YY'Yy ;Y'YY Y::; Y/fYY




Earl Lambuth
\/i,.

v1*

Y-

k.

'

V.y

be

wyckoff, vice pres.

j.hyland, Secretary

■

i

'jf

h. a. phillips

m. scaife

adolph

this type

.

have

long before

:well

donald d. shepard

where

arthur b. van
buskirk

side

george w. wyckoff

many

of effort to improve the

inside

they

as

FREE
OF

are

well.

V'

N.

—Send

18A,

Y., and

containing
articles.

v.

the

workers and

a

employed, and out¬
/
; ; :-v;4^yY:
; '•
*7/ t :;YY

postcard to MARK MERIT

-

350
you

DISTILLERS

Filth

Avenue,

will receive

illustrated
"

these

organization

v.

SCHENLEY

Dept.

other corpora¬

actively interested in

iS

OFFICES—B25 WM. PENN
PLACE, PITTSBURGH, PENNA*

idea that it won't

relationships between

workers

w. schmidt

an

being of feminine

the

\

•»

YYYK'"-r YYYYY

we

tions will be

.

GOVERNORS
alan

mellon

j w. l. mellon
!\xt

/

p.

general counsel

ft

JAMES 0. CLELAND COMPANY
with

george W.
y

^

joseph, d.

And

adolph W. schmidt. Vice
Pres.

"

*•

a

CORP..

N.

T.

1,

96-page book

reprints

of

earlier

THE COMMERCIAL & FINANCIAL CHRONICLE

>rv<

vj

\J

Brew

Atlas

hied Top

V.f

Responsible for the Steady Flow of
Many Scarce Commodities to Foreign Lands

;

if);

Informed

Kingsbury Brew

-

,

C.L Schmidt & Co.
;

r

t

Established 1922

-

■

Men

Tele. CG 271

Randolph 6960

Tel.

shores

our

ticularly

Association

Member, National

—

foreign lands, par
the
Latin - American

York for

For

period.;
It is

ganized

'fc;-

cially has been seemingly bounti¬
fully
supplied
with
American

,

common

The

Wall Street that

on

Venezuela

and

elsewhere,

and that the construction of

sev¬

eral

the Latin-American market espe¬

large luxury hotels, requir¬
ing American steel a and other'
building
supplies,
has - either
started
or
is being planned at
various Latin-American sites for

MARKET

DISTRIBUTION

American

-

Security Traders Association.'

President:^

elected:

were

Matthew

B.

Pilcher

Mid-South

III,

*

Securities Co. Secretary and Treasurer: Herbert
.

Pettey, Equitable Securities Corp.: National Com- "
mitteemen:
r

Carr

s

Frank

Equitable

Burkholder,

Se-

curities Corp. and Frank WilsomJackM. BassCo.

,

Pa^ne^

-i-

"■ " : 1 *

:

PITTSBURGH SECURITIES TRADERS ASSOCIATION

countries
is

during the war period
entirely clear—^ even yet.
is a feeling that - corrupt

not

.

LOS ANGELES 14

Latin

the

or¬

May 14th and has become affiliated

following officers

President:

Just how some of these goods

reached

Security Traders Association. was

on

Caijr ;^yne, Cuiiaberland^ Securities! Cpyp,

Mother Hubbard—were .bare.-.<
;

Graham, President of the National

with the National

knowledge among

the informed

Chile,

UNDERWRITERS

CHICAGO 3

considerable

some

shirts

Pacific Coast

SECONDARY

Nashville

New

and women's nylon stock- goods for many - years, that is,
evert during the war,, when the
ings can be found in abundance
counters of American stores —•
in Mexico; that 1946 model Amer¬
like the proverbial shelves of Old
ican automobiles are available in

I Wholesale Distributors
Middle West

to

These sources say, for instance,
that American-made men's white

\

of Securities Dealers

\,

Thomas

ASSOCIATION

Security Traders Association, announces that the

responsible for the steady flow

countries,, where, the. absence of
price restrictions permit higher
market prices.

CARTER H.C0RBREY& CO.

NASHVILLE SECURITY TRADERS

Wall Street who ke'ep a sharp eye on the export trade

on

believe that OPA price ceilings are
of many scarce commodities from^

CHICAGO 3
i

badly needed at home to South America
and elsewhere. ;Retail merchants feel there is only a'"trickle" of'
goods leaving country and discount importance of current reports,-,
but admit foreign pressure for American goods is strong and likely
to remain persistent for some time.
Building contractors; report
shipments of lumber out of New York.

Salle Street

120 South La

NSTA Notes

movement of many items

Edelweiss

Schoenhofen

1

Wall Street believe OPA price ceilings forcing

sources on

-

' "c

Brew

;

Hold OPA

Trading Markets 2>:
r?(

emmmmmmmmmmmmmmrnmemmmmteemmimmemiemmm '. ^

■

Thursday, June 13, 1946

There,

The organization of the Pittsburgh Securities Traders Association"
May 15th and its affiliation with the National Security Traders;

on

.

Association, has been announced by Thomas. Graham, President. of'
- The
following officers were elected: President: Charles'
Vice-President: George S.lend-lease goods up for public N. Fisher, Singer, Deane & Scribner.
American retailers are inclined
sale, such were the quantities of Lestrange, Moore, Leonard & Lynch. Treasurer: George C. Bodell,"
to discount the effect of OPA■Young
Company, Secretary; Earl... &■ Sweitzerv Ei E* Sweitzer &;
goods in evidence.

650 S. Spring St

135 La Salle St

Michigan 4181

CG 99

Stats 6502

the

LA 255

commodities

ply of such goods, since they un¬
derstand the movement of vari¬

Utilities Corp.

products

ous

The Chicago Corp.

borders

Request

•

,

character

HICKS £• PRICE
Members Principal Stock Exchanges

Chicago Board of Trade
231

So. LA SALLE

•

.

St.. CHICAGO 4

.Randolph 5686—CG 972:

:
"

New York Office#

more

1 Wall St. V

•►

American

hardly
"trickle."

a

however,

Contractors,
vouch

on

across

be said to be

can

than just

more

The-Muter-Co.
Circular

the domestic sup¬

on

will

readily for the steady
such

of

have placed

(The conviction is strong among
Wall Street men who understand
the
Balkan
situation that \ the

thing may now happen with
shipped to
that part of the world. Corrup¬
same

foreign

at home at this time

for

the construction of G. I. homes—

have been made;- regularly from

Co.iAnc^fS^U:]:.
f-

1'

v
(

\V V

4

,

i'"

.

tion

is

believed

be

to

Al 2Qlh Annual

rife

as

the

situation

eign

well ^enough to
wh&h Amer¬
jfo'foreign lands

realize the extent to

goods sent

(Continued

*

WoodaU Industries,

"Camden

Inc., Pfd.

Record attendance of

Snap-On Tools Corp., Com.

Federal Machine & Welder

♦Prospectus Available on Request,

Paal H.Davis
_•

Established 1916

&6o.'
,

Common Stock

more

Members Principal Stock Exchanges

Chicago Board of Trade

10 So. La Salle St.,

in the afternoon and

a

"

Co.,

j

»•;?

SILLS, MINTON & COMPANY

Chicago 3

Tel. Franklin 8622

Teletype CG 405
Indianapolis, Ind.
Rockford, HI.
.v.*
Cleveland, Ohio

'INCORPORATED

^

.

Members Chicago Stock Exchange

209 SO. LA SALLE ST., CHICAGO 4,

*

day at;

*

dinner in

firm

of

Mead, Miller &
the Stein Bros. & Boyce

won

Armstrong and: Frank King, both
of; Stein; Bros;

"

&

Boyce and E.

^

puy Gray^^of^^the Mercantile Trust s
Co.

.

i':?*

—~

.

Oabbs Sillivan Has

]
^

Formed Own Inv. Go.
j LITTLE HOCK,

ARK.—Dabbs

Sullivan has formed Dabbs Sullivan

Company with offices in

.

the*

Boyle Building, to act as under- Trophy with a score of 69 in the writers,; distributors and dealers;
individual tournament in which in Arkansas
municipal bonds. Mr. :
50: men competed.'
Sullivan was formerly a partner:
LeRoy A." Wilbu^ b| Stein Bros. in Walton, Sullivan & Co.
1
'
& Boyce: was Chainnan of the
Cotnmittee in charge of arrange¬
ments.
Joseph W. J. Cooper of
.

ELL.
Teletype CG 864

Telephone Dearborn 1421

"J 7^ |• 7

the Elkridge Club last Friday wij;h more than 300 members and"
guests in attendance.
The pro-®gram included two golf tourna¬ jiV. E. Hutton & Co. was in charge •
ments, informal tennis play and pf golf.
Other members of the
the traditional "Stock Exchange" Committee
included
Edward 1 J."

timore

■

;

^

than 300 at outing.

W. Carroll Mead of the new Bal¬

.

1

The Bond Club.of Baltimore held its 20th annual field

New York won the inter-city
golf match in which Washington,
Philadelphia and Baltimore also
participated.
Members
of
the
winning team were Herbert- S.
Hall of Morgan, Stanley .& Co.,
Joseph A. W. Iglehart of W. E.
Hutton & Co., and Mason B..Starringer of Graham^ Parsons Se Co.

Analysis Available

Forge Co., Common

v

Inter-City Golf Tournamonl
Outing of Baltimore Bond Club

]

f Wells-Gardner & Co., Com.

J

in the competition.

the evening.

3246)

on page

v.

Washington, Philadelphia and Baltimore also represented by teams
W. Carroll Mead of new firm of Mead, Miller
& Co., winner of Stein Bros. & Boyce trophy in individual contest.

the officials now as before
war,
particularly
in
the
smaller ' communities, and it is

among

ican

'•

»

Hew York Team Wins

American wheat to be

busi¬
ness as is being done, even though
feared that black market opera¬
they admit they do not know the. tions will flourish as soon as
extent to which it runs in. either American wheat arrives there in
value or tonnage.
They report, any quantity.)
"
for example, that it has come to
Wall Street is aware that many
their attention that heavy ship¬
Americans do not know the for¬
ments of lumber— very much
heeded

jthe NSTA.

*

stimulated foreign trade in scarce

Consolidated Gas

officials must have combined with

black marketeers to

future.

near

,

Chicago North Shore &

.fluiiiu

Milwaukee R. R.

FINANCIAL

,

—We Maintain Active Markets In—

—

TRADING MARKETS

1st

—

5s-36

Ref. 5i/2s-56

ADVERTISING
1 n A11

I ts

Albert Frank

#

Invited

■

ReL 6s-55

Central Pub.

*GIpbe Union Inc.

i

;

V REEVES-ELY LABORATORIES Conv. Preference

The

Gueiither Law

\ ^ Telephone COrtlandt 7'5C60

*MacWhyte Co.

;

Inc.

Incorporated
■
1131 Cedar Street New York 6, N. Y.
,

CORP. Common

CHICAGO SO. SHORE & SO. BEND RR. Common

Branches

Plans Prepared—Conference

]

DEEP ROCK OIL

r'

Dcston Chicago Philadelphia San Francisco

ianiiifii
S1L

Byllesby and Company

H. M.
"

Philadelphia

New York,

208 S«

Tel. Dearborn 9200

Tele. CG 146

FOUNDED 1913

J Fred.W.FairmanCqI
■

We have

analysis of

an

Recent

Analyses

Chicago Board of Trade

National Gas & Electric

Corporation Common Stock
A

discussion of this company.

CHICAGO 4, ILLINOIS
Telephone Randolph 4068
Direct Private Wire to New York
Bell

.;'

COMMON

/

T

System CG 537




Copies

on

request'"

CASWELL & CO.
120 South La Salle Street

CHICAGO 3,
Tele. CG 1122

ILL.

Phone Central 5690

THOMSON&

MARKETS
IS

for the

Stock

MfKINNON

MIDWEST
Standard Silica Corp.
Common

SECURITIES

Stock

STRAUSS BROS.

N-l,

208 SOUTH LA SALLE ST.

L

Instrument Co.

FAROLL & COMPANY
Member

New

York

Stodk

and other Principal

208

5111
fSSSSS

NEW YORK

Request

Merchants Distilling Corp.

Hammond

Common

For

on

•

Chicago Stock Exchange

Write

CG9$. S

Tel. State 9861

I SINCE 19081

Members

JLa Salle Street

CHICAGO 4

209 S. La Salle Street'Chicago 4

Minneapolis

-Pittsburgh

Brailsford & Go.

::

Members of Chicago Stock Exchange

Teletype CG273

Telephone State 8711

t

William A. Fuller& Co.

'"-Incorporated
135 So. La Salle Street, Chicago 3

-

Oilgear Co,

*Pro8pectus Available

,■

<

Utility Corp.

5^s-52

Exchange

Members
Members

Ass'n
Ass'n

Board of Trade BIdg., Chicago

Exchanges

So. La Salle St.
m

CHICAGO 4
Phone Andover 1430,

York Security. Dealers
Illinois Securities
Dealers

New

Tele.

€G

156

Telephone: Harrison 2075
Teletype CG 129

,

4

•

:

•-

231 So. La Salle St.

tn

N6tu

York

Office

>

I

•

r
.

Chicago 4

-

Branches In 35 Cities

Members New York Stock

*

c

.

-

,

Exchange and othell

principal exchanges

,

u/lro

1

)■ COMMODITIES

'

^ESSsmmmammem

;

v

Volume 163

Number 4498

-

THE COMMERCIAL &

Illinois Brevities
\

Trading iri grains futures

••

FINANCIAL CHRONICLE
Merrill Lynch, Pierce, Fennej| &: Bearie; Sidney L. Castle,
Vice-Chairman, Carter H. Harriman,

Chicago: Slock Exck;
Standing Committees •

I

the

3207

sori*&: eo.; "Gilbert"Ml Clayton;
Chicago Board of Trade was
halted for two hours last week as a result of a Federal
Chancellor Dougall, Barrett Wenrestraining !;
CHICAGO, ILL. — At, the an^
order brought on
by the complaint of Robert W. Bufkley, who sought nual
deiir ' " " *
;ife7''
organization meeting of the
II to enjoin the* board from putting into effect hew
trading regulations; Board of Governors of the Chi¬ I Stock List: Harry, C.- Daniels,
i
which, he said, would cause members to suffer ^irreparable damage"
cago Stock Exchange, Ralph W. Chairman. Apgar, Daniels & Co.;
I and ^confiscation of property/*
John J. Griffin,
Vice-Chairman;
D^vis; Paul- H., Davis & Co.,
v
The order was later dissolved '■ &
Harry M. Payne; Charles R. PerChairman of the Board,
appointed
:
by Federal Judge Elwyn
There were 47,402 fewer ! pas¬
R.
rigo, Hornblower & Weeks; Rich¬
the* following,
standing ' commit¬
Shaw and the following day the
ard! W, (.Simmons,
sengers riding the lines the first tees to
serve for the
Lee^Higginson
ensuing year,
t
board announced suspension of
Monday the* rate increase went which -were
Corp.
confirmed
by the
Mr. Buckley and his son, Charles
into
Mr.
but
on

•

New

Chicago Exch Member

Mr.

1

Louis R. Peyla, President
Treasurer of the Illinois Se-r

and

curities

Co..

elected

to

Joliet,

Illinois,

membership

was

in

the

Chicago Stock Exchange by the
Board of Governors.

t

With the election of Mr.
Peyla !

;

•

r

to

membership, Illinois Securities

Co. becomes the 34th member cor—!

.

effect, Mr. Johnson said,
nevertheless, showed an
increase of 14%. The comparisons

W. Buckley 2nd, doing business
f

;

meet margin requirements.

.

1

Mr.

Buckley's
stated

ever,
was

to
v

'

•

revenues,

fefefe^l

by

the

"arbitrary

-

reappointment
present

three

of

Advisors:

sail,?! Sheldon

Carl

Y.

Freeman.

President

E,

of

Associates

Clark

*

the

A.

;v,4;; *

?

Bird-

and

illegal" action of the directors of
Federal' Judge Igoe is expected"
the exchange and not because
j)f to rule this week on* final cdhr
any inability or unwillingness to firmation of the
plan-to. sellthfe
Jneet their commitments. ; ;
' fe Chicago Surface Lines to the pub?The court action grew out of licly
owned
Chicago Transit
the Board of Trade
ruling, order¬ Authority.

Admissions;

Robert

A.

ner^ * Chairman; Patrick

ley

Gard-

pointed

of

the

TRADING MARKETS

Ohman,
Brokers'

Chicago,

was

"Old'' Preferred Stocks

ap¬

fourth

of

advisor, to
succeed Mr. Behtley G. McCloud,

F, Buck¬ who served in

Vicfe-Chairman, Harris, Up- city to the
BurdickjiJr^. : ' James; E.

i

Stock

Charles

an

advisory

;

A"'

CHICAGO, ROCK ISLAND

capa¬

|&

Board for five years.

ham &; Co.; John
R;
William
A.
Fuller;

Day,!' who succeeded

Francis F.(
Patton,-A^ G.^Becker & Co., Inc.* Kenneth L. Smith, as" President
of the Exchange upon his retire¬
Finance; Reuben
Thorson,
ing that trading in old grain fuObjections to confirmation of Chairman, Pairie,
Webber, Jack-; ment :May 1, 1946, was reelected.
tures contracts be resumed under the plan were voiced
by William son &- Curtis; Edwin T.
Wood,/ F. Joseph Butler; who joined the
fe' hew ceilings announced by the R. * Morgan, attorney for holders
Vice-Chairman; George E .Barnes; staff
of- the Exchange as a ViceGovernment May 8 and effective of
Chicago Railways Co., Series B Frederick J. Stannard; Frederick
May 13. Defaulting shorts in the bonds^ and James A. Sprowl, repr¬
President on- May< 15, 1946, and
RlTuerk, Crittenden & Co.
expired May contracts would be esenting junior stockholders of,
Floor Procedure;. John J. Grif-' Raymond M. Day were reappoint¬
penalized to the extent of the new the Chicago City Railways Co.
fin, Chairman; Hugh H. .Wilson,* ed Vice-Presidents; Carl E. Ogren
ceiling .prices.
- * (■
Vice-Chairman; George E. Booth, : was reappointed Secretary; Wal¬
Mr. Morgan pointed out that
fefe/v-fe; ,•■<>
*
*
ft
'•
?
fe:
Lamsen Bros. - & Co.; Joseph. P,
fe feV
j :
ter
R.
{ the, Chicago Transit Authority*
Hawes, Treasurer; and
'fev A report that a group repre¬
Brown; Walter J. Buhler, Irving
had not begun selling bonds to?
Matter;E. Nelson, Treasurer Emer¬
E. Meyerhoff,
senting the nation's railroads had
■

poration of the Exchange.

the

of

and

William

the

r

suspended because it refused

abide

Executive:

.

attorney, how¬
Buckley & Co.

that

Davis" also- announced

Bbard^'!Sfefeivfe|f,^

George E. • Barries,,
Chairman, v Wayne Hummer
&
were made with the
correspondj- Co.; Walter J.
Buhler,-Vice-Chair¬
ing day of the week in 1945. fefe- •
man; William A. Fuller, Wm. A.
The City (jorincil is expected .to Fuller- & Co.; Harry M. Payne,
Webster, Marsh & Co.j' Barrett
oppose the fare boost,
*
>
Wendell, Lee; Higginson Corp.

as Buckley &
Co., on the grounds!
,that the company had failed to;

.

PACIFIC RY.

DENVER & RIO GRANDE

r

|| WESTERN

r

RR.

ST. LOUIS-SAN FRANCISCO

•

'

RAILWAY

'

KITCHEN & CO.!

.

•

••

,

' V;

•

.

•

s

•

135 South La Salle Street

-

•,

'

_

.

.

'

•

•

asked
to

-

■

finance the

Standard

take

Steel
the

over

proposed purchaser
and asked if the delay was due

Spring Co.

Pullman fe Co.

to the hope that street car fares!

when

and if they obtained title
pending suit was officially
Gurley, Presi¬
dent, Santa Fe Railway, and mem^-

might be raised.

in -a

•

If these fares*

are

increased before the bonds1

are

denied by Fred G.

sold, he said, the value of;

the surface lines' property
will]
be increased to such an extent!

ber of the committee which acted
for the railroad purchasing
group, .4hat the B bondholders
may be
fNone of us had heard of such
able to benefit ;from the sale.1 ;

i
-

t

offer

an

before

statement

-

no

appeared and

of

one

three

»

unsuccessful

bid-j

Government's

,

against

antitrust

Pullman,

Was ordered to

'fe

Inc.,

its sleeping car

or

turing business.

*

?

it

,

suit

dispose of either

J.
Stannard,
Vicef of Assistant Secretary. This ofChairman; Robert W. Baird, Wis^
ficef has been vacant since Decem¬
consin Go.; John <W.
Billings; Di.
Deanfe
McCormick^ Kebbon, MCf ber^ 1942.
Mr, Jess Halsted, of
Cormick •& Co.
I:
!
Scott, Mac-

ing survey being linade
properties.
*. fe,fe';

of

?
New Business and Public Refac¬
tions; Homer P. Hargrave, Chair¬

Leish

&

Falk,

Counsel.

Trading Markets

*

Corporation

fur-

investments

1 inn in the world. '

&>.

Abilibi P;

in

.sideration

fe

United Transit

J

0

&

**

'

,,

\

«

hf.

|

-

ua

fe) ^ r

felfefe:

fe

Co. Com, & Pfd.

:«/

,|

-«oil :production

.

.

is

I

|

'

fe'

.vfe'fe:'-.• " Ife

QU

J»

^^^v^^JPraspMtus^ttpan^request^

fe'fefe;fe fefe'

from

Rhodesian

;

<■

,

*

•

The

*

*

two-cent

liow in effect
Transit

on

•4

---1

I

.■

San Francisco Mines

fefe

*>

increase

fe

$

-

Chicago

about $2,600,000 in the! ^

i

ticipated loss of about 15,000,000 <■
riders, Harley A. Johnson, Gen- *
MBral Manager, testified before the!

i

fefe

Illinois Commerce

An
:

fe

charged by

elevated:

:

■<;

lines for; transfers where
quested,

re¬

! I .fell,'• fefefeifefe:fefe i> -

Incorporated,

,

„

- *-

,

*

■.

Boston: fe -Milwaukee

Minneapolis

j

,

,

,

'

fefe

-

^

c

fefe|i-:fefe::l

j 'Sy*

fe

ZiPPIN

tmm

★

.

■

.

& COMPANY
Securities

I;■

j

•'CG 45l"

*

.

upon

tNCOBJPORATED
«

r

-

;

-

,,.:| 'fefe '. fefefe;;

*Detailed Analysis Available.

request

Upon

Request

,

,,

fe'
:

,

COMSTOCK & CO.

*

CHICAGO 4
231 So. La Salle St.

CHICAGO 3, ILLINOIS
'

fe

Trailmobile Company

135 SOUTH LA SALLE STREET

Telephones- Dearborn C102

Company

Superior Tool & Die Co.

PFD.

DOYLE, O'CONNOR & CO.

i

.

Prospectus-available

fe fe ;

Manufacturing1 Co.

Puget Sound Power
& Light Co.

i;

.'.fe'fefefe ;:|||

*

*

;-'fe I

■Chicago 4, Illinois;'.

Randolph 469fir,

,'■

t

^08 S. La Salle Street *

■!l

REALIZATION

INDIANAPOLIS POWER- &. LIGHT. 4%

..fe|v:-| X-fe, i,;.-

Foreign

Kropp Forge Co.

| fe

MICHIGAN- GAS & ELECTRIC $6 PFD.
*

:

Hydraulic Press Mfg. Co.

MIOLAND UTILITIES
MIDLAND

t-fe/

\

Specialists ' in

'

|

Ne w York

-

Vicana Sugar Co.,; Common •!

,

Commission.!
the

*(

fe

"

-

an-; >

additional penny is now also; |

being

ILLINOIS

PHONE STATE OlOt

Nutrine Candy

,,

-v

Vicana Sugar Co. B/55

:

iiext 12 months, despite the

I

(Mexico),

Steep Rock Iron Mines

fe

'

4.

Howard Industries/ Inc. fe

^Miller

Scophony, Ltd.

increase

Chicago Rapid

Cor lines will

Anglo American

Rhodesia Broken Hills

-

fare

SOUTH LA SALLE STREET

fel CHICAGO

Aeronca Aircraft Corp.

AXlALIXN«®COMEANY

•

*

revenues

'S

*

Rhodesian Selection Trust

land has 108 rotary drilling rigs
Jn operation in some 16 states and
an South America and Cuba.
fe

V

■f
i,..

Qroville Dredging

Loff-

fe

-Vvfe.fefe"..V

ADAMS & CO.

■'

BOUGHT - SOlD~

TELETYPE CQ«36l

Ontario Paper, Com.

Minn. &

Swells,

v

«-•

RequestVA

☆

1-"f"-Ah'

:ffe.) 'rb fefe.fe

'

fe'

Fresnillo Co.

approxi-

31

t

.

Gaumont British! Pictures

largely in the southwest.

,

r *

on

Conv. 5% Preferred MA

fev,,-.:

,

.

&

'

Circular

fe: ^-;■ fe

Common

-

Cinema Television

The Loffland properties include
considerable volume of crude

V

fe'y

,

i

"I• rn a fe /xfe fe ^fe:

?x^

231

fe

'

involved

:mately $11 *000,000.
-

'"X,K

Class A

PA

Brown Co. Com. & Pfd.

.According to.reports, ;the :ooh*»

\

It?-',4+ '

its inamifac-

Tulsa, Okja;, rated as the largest
•oil well drilling and*
contracting
;

h.

-

.

*

i

: ■

|j*- "fe

reappointed

was
.

s

and Common Stocks

the

.

•'. :i

.

.

operating properties
with the purchase of a substantial
fe interest in Loffland Brothers Co.,

.

R. HOE & CO., INC.

.

Transit .Authority^' said, v He 6x4,
^plained that* delay in- selling th£
; bondswasaresultof an ehginebrf-

and oil

:gas

fefe' T

**•••-<

"ther increased its
-

who

Frederick

;

Chicago

Bergman,

Judieiary; Alfred W. Mririsfield, has- been with the Exchange since
Chairman, Thomson & MeKinnon; 1930, was appointed to the office

-

The

J.

!

Tele. CG 28

!

.

which

-

the

raised,

are

George

Chicago 3, III.
Tel. STAte 4950

out, Werner Schroeder, atr
representing the Chicago

torney

was

if fares

itus.

jiimor security. holders- will* be
frozen

Steel / Spring

ders for the Pullman Co. in the

-

Even

have

we

formal statement.

a

f Standard

-

newspaper

knowledge whatever of it,'* he

said in
-

the

Irving E. Meyerhoff & Co.; Edwin T, Wood.

fefefefefe

T'

" * V

Dearborn. 1501

Teletype CG

955

Teletypes CG 1200
fel

Bought—Sold—Quoted
* Ft.

-

Wayne Corrugated
Paper Com.

JOHN J. O'BRIEN

*$l Iiouii

j;

fe-

' ''
Stock'Exchange fe-fefe

Members

New York

New York Curb

;

(Associate)l' fefe

New York Coffee & Sugar

Exch., Inc.

Chicago Stock Exchange

Chicago Board of Trade

fe|

-

on

i

fe:

;:|||

Incorporated fe ,i|

South La

Salle

v

Merchants

;

530

*

-

Direct wires to

Central
our

offices in

principal financial centers

Distilling

li
i'

A

•

'+

»

Chicago

Members; Cbicagq Stock Exchange
7540

134

South

La

Tel. Andover 1520

Salle

-fe

•

,***."

:

*>•'. \•■*

••

_

:

'

C'A

•

•

fe-

fe.

Gisholt Machine
All Wisconsin Issues

Hearst Class A

'>r^ 4

First Securities Company
of

CfeG. Conn

I

'fe—fell!

fe

Consol. Dearborn Com.

'■■A*Memos Available Upon Request fefe

Street

CHICAGO 3
CG

Pickering Lumber Com.
fe

;

Request

;

•

•

->

209 S. La Salle Street




*Prospectus

|

^Standard Milling Co.

-

E. H. Rollins & Sons
135

CHICAGO 4

;*

Universal Camera Com.

Macfadden Publications

Fleger Com.

K

LyttonV (The Hqb)
fe #

CoipniQa A Preferred.

V

ferfefe;/

Greiss

i

^JessopSteel
.

Public Service "A»

,~r-

Street

| Tele. CG 1399

I0LLEY, DAYTON & GERNON
STRAUS & BLOSSER
Members New York Stock
Exchange
Members Chicago Stock

Exchange

Associate Member New York Curb
'
135' South La Salle
St., Chicago 3, 111.
Tel. ANDover 5700
Tele. CG 650-651

Member—Chicago Stock Exchange
105

So.

La Salle St., Chicago 3, 111.

CG 262

Central

0780

Offices in Wisconsin
Eau Claire

-

Fond du Lac

Madison

-

-

Le Crosse

Wausau

(';

VK

FINANCIAL CHRONICLE

THE COMMERCIAL &

T. Mellon and Sons

;

Formed in Pittsburgh
PITTSBURGH, PA.—Announce¬
ment is made of the formation of

Following on the heels of

at 525 William Penn
purpose

the redemption of the Lefcourt State

been called for

payment on June 14th, two. years

turity date.
The bonds

Place, for the

rendering service

of

connection

that the entire
5% bonds has
prior to the ma¬

Building bonds in November 1945 is the announcement
issue of Lefcourt Manhattan Building first mortgage

with offices

Sons

and

Mellon

T.

Lefcourt-Manhattan

in

investments

in

with

which the Mellon

family is inter¬

ested.

had

Officers of the

new

organization

constituted a first mortgage lien against land are Richard K. Mellon, President;
Alan
M. Scaife, Arthur B. Van
owned in fee located on the nortf.
.r ■
,,
east corner of Broadway and Thir- ent owner of the property and a Buskirk, Adolph W. Schmidt and
W. Wyckoff, Vice-Presi¬
E. B. Clarke, Treasurer;
Hyland, Secretary, and Jo¬
seph D. Hughes, General Counsel.
Paul Mellon, W. L. Mellon, H. A.
Phillips and Donald D. Shepard

ty-ninth Street,-New York, N. Y., wholly-owned subsidiary of the
together with the 23-story busi- Lefcourt Realty Corporation. £&
ness building erected thereon, and.
Originally issued in 1926 in the
were
an
obligation of the 1412, par amount of $3,200,000, the

the pres-

Broadway Corporation,

—

$2,877,500

to

reorganization

of

of bonds

an

the

at

(Special to The Financial Chronicle)

CHICAGO, ILL. — Hueling
Davis, Jr. has become associated
with The Ranson-Davidson Com¬

on

June

14th, 1946.

With interest rates

WANTED

still

the

on

prevailing bid prices
instances

and in

some

above

Ingen & Co., Inc.

Stanley Heller Co^

Sarah Metz With

Now NYSE Members

;

Securities Engraving

prevailing of¬

fering prices Jfor cer*
tain
blocks
of se¬
real

unlisted

securities.

estate

135

Street.

tutional loans.

is

lected

South

La Salle
recently
been serving in the U. S. Army.
gage borid issues yielding as much
Prior thereto he was manager of
as 5%
are becoming rarities, bethe
Southern
Municipal
Bond
ing replaced by less costly insti¬ Trading Department for B. J. Van
Inc.,

pany,

decline, well-secured first mort¬

above

pay

Ranson-Davidson Co.

present

time, $2,011,600 in bonds, remain

SECURITIES

will

Hueling Davis With

outstanding and will be redeemed

REAL ESTATE

We

'*

value

obligatory sinking

Therefore

fund.

members of the Board of Gov¬

ernors,

retired through the

were

operation Of

are

1934.

additional $865,000, par

an

the

at

in

J.

reorganization

Subsequent to the

BLOCKS OF

dents;

bonds had been reduced by serial
retirements
time

V

George
P.

Heller &

Stanley

Co. became

Davis

Mr.

has

of New York.

Securities Engraving Corpora¬
York Stock
Exchange, effective June 10th, ac¬ tion, engravers and printers of
cording to an announcement by securities,: 67-69 Park Place, New
Stanley Hel- York City, announce that Miss
ler,
senior Sarah Metz has become associated
/fC ^ 1 partner of the with their sales department.
'ML *
firm. The an-

members of the New

SHASKAN & CO
■

•

Mtmbert Now York Stock Exchange
Mombort Now York Curb Exchange

40 EXCHANGE PL., N .Y.
Boll Motypt

5*r'J

nouncement

wmk

Dlgby 4-4950

NY 1-953

added
the firm

Mm

Bjj

that
will

en-'

occupy

Chanin Bldg* 2/45

larged quarters at its
present ad-

Bldg.1/45

m&g} dress, 30 Pine

m:

-fei
Chaniit

Wm ' Street.
:

500 Fifth Ave. 4-6/2/49

2 Park

\\m\ has

3/56

51 East 42nd St.

The

Alison Company

been- a

Slafff

(Special to Thb Financial Chronicle)

DETROIT,

MICH. — Philip

in

Buhl Building.

the

Weeks

Mr. Smith

past was with Baker,
Harden
and
prior

&

thereto.was manager of the trad¬

department for Alison &
Curb E X- Company.
change since
1927, and is also a member of the
Now Aronson, Hall
Co.
National Association of" Security
Dealers.,
The
firm
name
of Bernard
;
They will now do their own Aronson & Co., 11 Wall Street,
clearing as members of the Stock New York City, members of the
Clearing
Corporation
and
the New York Stock Exchange, was
New York Curb Exchange Clear¬ changed to Aronson, Hall & Co.
as of June 1st.
ing Corporation.

IH

York ing

New

Stanley Heller
'

v

Members New York Security Dealers Assn.

39 Broadway
New York 6f N.

Y.

Teletype NY 1-1203

HAnover 2-8970

nnounemg
CHANGE

Commodore Hotel, Inc

TELEPHONE

OF

NUMBER

TO

Descriptive Circular

on

request

EXbrook 8515

Seligniaii, Lubetkin & Co

J. S. Strauss & Co.
Tele. SF 61 & 62

-

Incorporated

Francisco 4

155 Montgomery St., San

$

EXbrook 1285

.

Real Estate Securities

41

Members New York-Security Dealers

'

Broad Street, New,

New York A. C. 2s,

Association:

HAnover 2-2,100

York 4

Roosevelt Hotel 5s, 1964

1955

Savoy Plaza 3/6 1956 W.S,

Sherneth Corp. 5 Ms, 1956

Commodore

Mayflower Hotel Corp.

Prince & Lafayette Streets i
'52—New

5s

Lott Hotels,

Wacker

York

Inc.—Chicago

Wells

Bldg.^

Roosevelt Hotel, Common
'

St. Louis

;T

Hotel, Inc. Com.

Hotel Waldorf Astoria Corp.
'.,

;

AMOTTrBAKEk
.

-

-■"-»*

135 So. La Salle St.;

Central 4402




Common

Roosevelt Hotel Inc.

Valiquet & Co
CG-81-

870—7th Ave. Corp.

Common -> 'T-'Si-

•:

Myles Standish Co. Boston

CHICAGO

H,

Smith has rejoined Alison & Com¬
pany,

firm

meipber of the

Ave; 3/46

Philip Smith Rejoins

_

>

^0

*

*

Incorporated
.

-

150 Broadway
Tel.

BArclay 7-4880

New York 7, N. Y.
'

*

Teletype NY 1-588

W.S,

Thursday, June 13,1946

DealerBroker Investment

Recommendations and Literature
it is understood that the firms mentioned will be pleased
to send interested parties th$ following literature:

THE COMMERCIAL & FINANCIAL

Volume 163 / Number ,4498
Hydraulic Press Manufacturing
Co.—Detailed analysis—Comstock
&

Co., 231 South La Salle Street,
Chicago 4,; 111.1 Also a detailed
analysis

Sharp

Dohme,

&

Inc.

Thermatomic

De¬

—

tailed analysis of the company and
its products—Seasongood & Haas,
63 Wall

74

Street, New York 5, N. Y.

investment trust shares

5

P

Kinney-Coastal Oil CompanyAnalysis—James M. Toolan & Co.,
67 Wall Street, New York 5, N. Y
Roi

common

lative

Company

stock

as

purchase

—

Study

sound

a

Dolphyn, Buhl Building, De¬

6,

1 Broad

*£■

Also

>

Special analysis

Descriptive Cir¬

—

Fred Uirich Now With

Street, New York 4, N. Y,

detailed

circulars

Peters, Writer Firm

on

—

r8pecial

John H, Lewis Temple Coal.

rich

Bond

—

has

Uirich

United States Government Ob¬

1946 edition

Financial

become

Chronicle)

associated

U. S. National Bank

Charles Sanders in Austin
—

The

with

Peters, Writer & Christensen, Inc.,

5, N. Y.

ligations

to

DENVER, COLO.—Fred C. Ui¬

gineering Co.; Shatterproof Glass'

r-

& Co;, 14 Wall Street, New York

Simplex Paper Co.—Descriptive
analysis discussion potential post¬
war benefits to the company from
the
automobile,
building,
and
frozen food industries—Raymond

AUSTIN,

TEX.

Charles

—

Sanders will engage in

for

the

P.

has

years

the securi¬

Building. Mr.

past

been

twenty-six

with

Bosworth,

Department, The" Northern Trust ties business from offices at 1003

Chanute, Loughridge & Company,

Company, Chicago 90, 111,

Co., 148 State Street, Boston 9,

in

Red River Street.

the municipal department.

of

Colony

Corporation, 70 Pine Street, New
York 5, N. Y.

New York

Co.

cular—Seligman, Lubekin & Co..

specu¬

First

—

Place,

United Aircraft Corporation

troit 26, Mich.

&

Upson

3209

Tennessee Products; Wellman En¬

Arthur

—

Wiesenberger — $10.00 per copy
•--Arthur Wiesenberger & Co., 61
Broadway, New York 6, N. Y.

Le

&

Trinity

N. Y.

Sheller Manufacturing Corp. —
tecent report—Mercier, McDowell

J Investment Companies —- 1946
editions-study of opportunities in

Co.

—Circular—Hoit, Rose & Troster,

Miller Manufacturing

on

Co.

Carbon

CHRONICLE

New Issue

Special letter avail¬

able on Citizens Utilities.

$29,100,000

Macfadden Publications—Circu¬
lar—C.

E.

de

Willers

&

Co., 120

Broadway, New York 5, N. Y.

City of Philadelphia^ Pennsylvania

Magor Car Corporation-—Study
of sound railway
equipment issue

«^send for circular CC

Blair F.
Claybaugh & Co, 52 Wall Street,
New York 5, N. Y.
—

4%,
Dated July 1, 1946

Midland Utilities Company and
Realization Company—
Current memorandum and bal¬

*

\

Midland

Due

::

,,,

Interest

Legal Investments, in

—

an¬

alyses of Pacific Public Service
Company, Soundview Pulp Com¬

National

Gas &

These Bonds, in the opinion of counsel, constitute valid and,
legally binding general obligations of the City of
Philadelphia, and the City is obligated to levy ad valorem taxes upon the taxable property therein, without limita¬
tion as to rate or amount, sufficient to pay the principal of said bonds and the interest !ahd State tax
(if any) thereon.

Electric

Electric

memorandum

on

Corp,
stock

a

AMOtjNTS; MATURITIES AND PRICES

offering combination of improving
Utility income, together with ex¬
cellent

(Accrued interest

,

speculative

Price

Coupon

possibilities
from oil developments—Fred W.

Amount

Fairman &

Due

Rate

4%

1948

4

940,000

1949

960,000

1950

4

1951

4

.80

960,000

A

Due

1952

4

.30%':
.50

970,000

1953

1954

U/4%
u/4
u/2

'

1.50

3/0,013

1983

190,000

1984

U/4

1,75

393,000

1985

1.75

s

1.50

730,000

V

L45

1969

;

.

1.50

u/2

^

750,000

1970

750,boo

1.05

1.35

340,000

1977

1V4

1.35

350,000

1978

U/4

1.40

360,000

1979

130,000

1988

U/4

130,000
140,00^

1989/
1990

m
U/4

1921

U/4

150,000

1992

1/4

99

150,000
150,000

1993
1994

u/4
U/4

1.65

150,000

1995

1996

1

1.40

1963

320,000

f 1974

1.25

330,000

1975

1.30

t:

1.55
1.55

11V2 /
^ Wi

/

1.60
1.60

n

v

*'

99

1.55/

'a

1972

1973

1.20

.

750,000
320,000

:fev,

99

140,000

1.65:,

;U/2
w IV2

U/4

1986

1987

1.65

U/2

1962

390,000

'410,000

IV4~
1%^'
iy4

.

1976

U/4

1961

1.10

,

1.70

1.65

,330,000

1960

1957

1.70

1.70

1.60

im

1971

1.15

;.

1.70%

160,000

>1.00

«

1959

900,000

Purolator Products, Inc.— An¬
alysis — J. F. Reilly & Co., 40
Exchange -Place, New Yprk 5,

1981v

1.50

/ U/2

900,000

New York 6, N. Y.

1980

' 360,000

0*

P-icq

te

,1982

1968

890,000

Interesting possibilitiesHoit,
Rose, & Troster, 74 Trinity Place.

$360,000

R

370,000

1967

890,000

on

Due

u/2%
u/2
u/2
u/2

730,000

1958

•

.

Panama Coca Cola—Circular

Amount

1.45%

920,000

880,000

1955

1956

870,000

Yield

Coupon

Yield

1966

890,000

970,000

,

to

1965

1V4
U/4
1V4
w
m
VA

980,000

Analysis — Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.

Price

Rate

920,000

.

.90

4

970,000

_

New England Public Service—

added)

910,000.

.

-.60

*

1964

$900,000

.

.

to be

Coupon

:C Amotint

.70

960,000

Haigney & Co., 75-Federal Street,
Boston 10, Mass.

-y

"

1947

$170,000

New, England Lime Company—
Descriptive
circular — Dayton

V:

Yield

to

940,000

Co., 208 South La Salle
Street, Chicago 4, 111,

-

opinion, for Savings Banks and
Pennsylvania and New York

our

Trust Funds in

—

—Late

>

Exempt from Federal Income Taxes under Existing Statutes and Decisions

City Bank of New
York
Special analytical mem¬
orandum
Walston, Hoffman &
Goodwin, 265 Montgomery Street,

Westinghouse
Corporation.

'

AAA ' VVM

National

and

January If!,as shown below:

'

■

,

,

Also a late circular on Chicago
South Shore & South Bend.

pany

.

Principal and semi-annual interest (January 1 and July l Vpayable at .the office of The
Philadelphia National Bank, Fiscal Agent for the
City of Philadelphia., Coupon bonds in denominations of $1,000 and $10,000, registrable as to
principal only and
exchangeable for fully registered bonds. Coupon and registered bonds interchangeable.

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

San Francisco 4, Calif,
vAlso available are special

dna%2/V,%4/V
Serial Bonds

v%:

1.75

\

v

1.75
■

1.75 '

.

v

99*

99
99 *

1

99

U/4
U/4

-

.

99

The above Bonds

N. Y.

of

Also available is the June issue

are offered when, as and if issued and received
by us and subject to the approval
legality by Messrs* Townsend, Elliott & Munson, Attorneys, Philadelphia, Pennsylvania,

of Highlights of Wall Street dis¬

cussing several interesting situa¬
tions.

The National City Bank of New York

Ralston Steel Car Co.—Circular
on

interesting situation with fa¬

vorable
ner

&

long-term outlook—LerCo., 10 Post Office Square,

Boston 9, Mass
•

'v

,

■

&

Co.,

—

Corporation

The Northern Trust Company

Lehman. Brothers

Bank of America N.T. & S.A.

Blyth & Co., Inc.

The First National Bank
of Portland

Phelps, Fenn & Co.

Stone 8c Webster Securities Corporation

Goldman, Sachs & Co.

Brass—Study

Edward A.

Purcell

50 Broadway, New

York

Estabrook & Co.

R. W.

Glore, Forgan & Co.

Pressprich & Co.

Dick & Merle-Smith

Kean, Taylor & Co.

Paine, Webber, Jackson & Curtis

Mercantile-Commerce Bank and Trust
St. Louis Public Service "A"
memorandum

Securties
134

Company

South La

ago 3,
Also

dum

Salle

—

—

First

'■{.y.

of

Chicago,
Street, Chic¬

First of

Standard

is

a

memoran¬

Milling Co.

Schenley Distillers Corporatior
—Brochure

of articles

they have

>/•:

/;

.

pf-v

B. J. Van Ingen & Co. Inc.

Distillers

350

Avenue, New York 1,

Fifth

N. Y.

Corporation

>




.

Chas. E. Weigold & Co.
V;

^

Co., Inc.

Salomon Bros. & Hutzler

Hemphill, Noyes & Co.
VV"V^f

L F. Rothschild & Co.

V-

\

'

1

''

3

'

Schmidt, Poole & Co.

v

'•*'

Eldredge & Co.

Incorporated

Spencer Trask & Co.

T'0

:

;

r

Incorporated

Equitable Securities Corporation

Hornblower & Weeks
<•

a

li

y'f;

Eastman, Dillon &; Co.

Hallgarten & Co.

W. E. Hutton & Co.

Roosevelt & Cross, Inc.

v?yT "

'

Charles Clark & Co.

w'/

Dolphin & Co.

Butcher & Sherrerd

C. C. Collings & Company

•
■

■

Incorporated

Newburger & Hano

i.

»

'•• '

-

.

,

'

Weeden &

Co., Inc.

Francis I. duPont & Co.
'

«•,

?A':

• \

'

•

:

(f

■

Rambo, Keen, Gose & Kerner, Inc.

Walter Stokes & Co.

A

Sheridan,. Bogan Co.

Phillips, Schmertz & Robinson

,'i

;K.

June 12, 1946.

Co.
;;

Incorporated

\. :A-

Singer, Deane & Scribner

'Incorporated

Stroud & Company

(Incorporated)

<

Stranahan, Harris

Incorporated

Mackey, Dunn & Co. .f; A. Webster Dougherty & Co. | Bioren & Co.

been running in the Chroniclewrite to Mark Merit, in care oi

Schenley

V.

'■

Harris, Hall & Company

Michigan Corporation

John Nuveen & Co.

Company

f.v'u

Incorporated

■

•

available

on

'/■

Braun, Bosworth & Co.

111.

v

Blair &

.y

>

EH. Rollins & Sons

,»

%A'?:;Incorporated

4, N. Y.

Detailed

(Ofe.)

vv•v>;i'-:v.';•

Revere Copper &
of outlook

,

The First Boston

Halsey, Stuart & Co. Inc.

,

4 iv

'

'

<

3210

THE COMMERCIAL & FINANCIAL CHRONICLE

Turkish Lend-lease

Outlook fpi Trade With Italy
'

■■■

!■;,'!•.iyySri

Settlement

By ACHILLE

director, American Chamber of Commerce for Italy in Milan

Italian industrialist points out opportunities

;

for American exports

to

Italy under postwar conditions. Says Italy needs transportation,
communication, and building materials as well as staple-products
such as cotton, coal and petroleum. Contends Italy will be able.
;• to repay in time through its own exports, through tourist expendi-.
tores and through artistic services; ! Holdsvltaly can be made a subsidiary center of American industries and already- some American
organizations have established factories - in Northern Italy. Says
it is urgent American manufacturers act promptly in the
present
situation.

V

to thank

I wish

the Board

,

of Directors

;

.

1

kara

and

examine
discuss

ing effective

of

America

and

AGREEMENT ON LEND-LEASE

be¬

If

our

raise

this

di-s cussion

even

may look pre¬
mature at this

that
it

is

very

the

Yet, I feel
conditions make

important

in every way that
the trade relations between Italy
-and the United States be resumed
and

which

friendly cannot yet sign

Italy As

as.

for

market

a

duction.

Republic of Turn¬

and of financial

claims

A

of

American

pro¬

There you have a coun¬
,

with an excellent climate,
thickly populated and where gen¬
erations have been working for
ranean,

> ♦An address
by Mr. Bossi be¬
fore the Commerce and Industry

+In that small strip of land

they"

have

Associatidiip^bt-':lf^'"^York,~^ew'

*

*

a

(Continued

on page

me

ri

Edmond

to

c an*-

French

of

since

dividends
all

bearer
of

decree

a

Baldy

5

;

securi¬

March

26,

gives

them the choice of
having these securities reg¬
istered ! or
deposited with the
caisse, and that before Oct. 31,
1946,

either

in

for physical

sity

controls.r

economic

and

v -

The distriubtioh of securities in

Reaffirming, pursuant to the
obligations " assumed by

of work.

well

the

costs of such

increasing,
dangers

constantly

as

coupons,

tremendous amount

a

With

mechanics
as

interest

and

involve

resultant

the

of

losses, thefts, or conversion, all
a
very strong incentive
toward the finding
of a more

furnish

satisfactory system.
nished

'

consideration

Strong

;

fur-

was

,

occupation
period, especially after the re¬
opening of the Exchange in 1941,
to the perfection of a device to
protect French economy against
f' (Continued on page 3234)
f (
the

during

Current Economic

general

them in Article VII of the Agree¬

(population of 45 million

are

interest

ties

Declaring that this settlement is
complete and final,

you

ing,

defeat of the common enemy, and
affirming their intention to seek 1946.'|5'^' '*■
I. Reasons for New Rules
no further benefits as corisidera-'.
The measures in question were
tion for lend-lease or for the set¬
tlement of claims or other obliga¬ adopted for technical and prac¬
tions arising out of the war, ex¬ tical reasons, as well as the neces¬
cept as specifically provided
the present Agreement,

centuries
cultivating
the
soil,
building towns and cities and de¬
veloping all the arts.

a peace,

operations such as trad¬
exercise
of
subscription,
rights,
checking
of
deliveries,
physical deliveries, encashment of

handling
securities

and

~

Considering the benefits which
they have already received by the

Market

try between the Alps and the sea,
just in the center of the Mediter¬

are

-

a

Few,, countries at this time ap¬
pear to me as interesting as Italy

as

for

holders

se¬

aviod

to

Routine

the
of

'

and

advantages offered to holders of
securities
in
registered
form.

States of America and- the Gov¬

:;;y

tradition

of

reason

governmental
interference,
has
consistently preferred to physical¬
ly retain his securities despite tax

method

ernment of the

key,;!

next

different

TURKEY

The Government of the" United

eliminate

*

r

be complied ^witb hy
Former anonymity of

regulations promulgated in France

they % present
a n
entirely

OF

lease

;

York City, June 6, 1946.

technicians

AMERICA

OF

REPUBLIC

curity in Europe, and; this is of each government against the other
vital interest also for America.
arising out of World War II,

developed without further de¬

governments

THE

!

-■<

American

THE

of

lay.
If the

to

STATES

OF

.

..

be eliminated.

interest

THE

Animated by the desire to arrivb at a final settlement of lend-

and

clouded.

so

those

UNITED

AND

OF

working for their stability and

treaty

between Italy and the Allies are
still so far from reaching a con¬

world

urgent

more

BETWEEN

GOVERNMENTS

and

rancor

CLAIMS

follows:

and the United States means those

a

clusion, whehthe economic
political horizon all over

world

AND

to

Developing trade between Italy

negotia¬

peace

the

tends

those centers of social and politi¬
cal infection/

moment when

tions^ for

in

distress

suspicion and to encourage peo¬
ple toward desperate courses the
resumption
of
trade
becomes

To many bus¬
men

economic

as

^

•

.

.

respect; to the handling of securities in bearer form are not, by
of war
?
p(*
<8>
-p
circumstances,
B'rance is characterized by the ex¬
well
under¬
tremely large number of holders
stood
outsida
of small blocks of low par securi¬
of France.
'
ties.
Quotation of i securities is
The
procomplicated by the fact that trad¬
c
e d
u r e s
ing at times is done in single
adopted
will
units.
The French investor, by

The final text of the Settlement

working together in the rebuild¬
ing of that part of Europe.

now

reason

Agree¬
signed on

been

v..-/:-

j 1 PARIS,.FRANCE—The-1941
vith

May 7, 1946.

gen¬

tween

Bossi

as

had

:

holders, before Oct 31

will

owners

Settlement

which

Agreement is

two countries.

Achille

ment

between the two nations by

peace

prospects

the

certainly

can

and
work for

.

General Manager of French Clearing System explains new rules
pertaining to ownership and transfer of securities. Explains bow
American

Saka, Turkish
Affairs, mak¬
of that date the

exchanging their products and by

trade

iness

of .Italy

men

^

| these regulations, instituted during ; war, must

Hasan

with

the

you

eral

business

;

i

Minister of Foreign
Lend-Lease

the

to

me

with

BALDY

U

Caisse C.entrale de *
Depots et de Virements de Tftres, Paris

'

as war

On May 25, 1946; Edwin C. Wil¬
son, United States, Ambassador tc
Turkey, exchanged notes in An¬

:

EDMONI^

By

Directeur General de

supplies canceled
but U. S. reserves right to reclaim;
all such materials not consumed,
lost or destroyed. > •
; " '*

'opportun i ty<S>have

Governing Securities Ownership
■

the Foreign Trade
Committee of your Association for their kind invitation and for the

they
given

Agreement

Amounts due -for other mate¬

etc.

rials, such

'

.

France's New Regulations

Document signed May 25 provides
for payment by Turkey of $4.2
millions for machinery,lbcomotives,

,

Thursday, June 13,1946

ment of

February 23/1&45; on the
(Continued on page *3248)

3245)

Thinking in France
By CHARLES RIST*
Director, of Instltut Scientifique de

This appears as

a matter

of record only and is under no circumstances to be construed

offering of these shares for sale,
buy,
*%'.J

any

of such

*v•
r

' r

r-

•

I r

shares.

or as an

The

made

..»*

"

only

by

!

«*'•'

'

^

> £H

*

'

V

"

H

'

/

\\

*.

y

'

Noted economist maintains France's wartime administrative
K

V:''rtyy).

'•

.

■

•

.

•

*

;

:<

•

Miles Shoes Incorporated

-

:

(A New York Corporation)
'

'•

friVW
f',

.

,

\
.1.,

:kvv»>"

•

^ C

^
sr

J"-

-■

4*"

^ *%\\ £
; i

-

A

;>

r-

v-~>

•'

*t
fs

1

••

!
■■■:

v\

rv'' ><* ^ ^ 0 ^
^\
^
^* ~A£fi-\\rS'y!

\v,

,'/

::

... .

''vl

•.

^

,

r

/

■.

^

>

\ Tt

'

-

%
"

*

J

•

I

It

inevitable that the crisis of 1930 and then the German

was

beginning

occupation

economic

(Par Value $100 per share)

in

should

1940

France..

.

of

v

the

dustries,

occu¬

ment

(Pat Value! $1 per share)

a

t i

"For' the

e

j This

n.v

Frenchmen, who

j

as

may

lawfully distribute Prospectuses

in

such

—

" /:

the .ad¬

saw

in it nothing

but an-expression of enemy pow¬
er. On the other hand, it was not
without charm for those who had

long been inclined to £ consider
Over-all government intervention
,

t

in economic matters as the system
Of the future.
J

V
V-.;

•

'

-

;

a
system was provided by I Wartime Regimentation Was
Ministry of Food Supplies; and yyy'i.- Attractive to Some /
;. y
in industry by: the so-called "Or»i t At the ' same time, the French
ganization Committees.,^ ; It wa£ refugees, particularly the London
the task of the Ministry Of Food
group around General de Gaulle,
Supplies to collect from the farm¬ were
impressed by the system of
ers and distribute among consum¬
generaLcontrol and management
ers
such
essential products,
as
of production that functioned so
grain, potatoes,' meat and bread
well in England. Upon their re4
The Organization Committees had
turn to France they not only did

such

Copies of live Prospectus may be obtained iri any state only from toicfc Of]
undersigned

double system

of prod¬
system of
price fixing—obviously must have
seemed hateful to the majority of

power needed a system of control
and distribution.
In agriculture

the

for jGermany,

ucts supplemented by a

army arid tlie
disposition of 5
-agricultural <
Charles Rist
p r oductiio n>;
the occuoving ;•'t,•-

'

1x17

of which were con*

ministrative distribution

Up--

keep iof; its

many

demned to;work

pation was ap
general.:;Sys-,
tem of regi- *

56,267 Shares Common Stock

on

remaining stocks

locate them to the respective'

>

first ;r

consequence

(plus accrued dividends from June 7, 1946)

marks

of raw materials,
textiles, ferirbxis
and nonferrous metals, and to -al»:

research

; r The

profound

to subdivide the

and

thinking

leave

'

methods \in

$10^ Per Share

con-

trols, including ^communist" distribution, wbile hateful to major¬
ity of Frenchmen, appealed to proponents of permanent goverament intervention.
Reports strong fad for Keynes^theories, which
he terms paradoxical in view of France's peak prices, production
and employment.
Declares most useful economic research should
now be occupied, from international viewpoint, with
(1) comparative national price movements, (2) income distribution,
(3) flow of international trade and balance of payments,
(4) proposed, methods for achieving full employment, and
(5) regulation,of savings.

:

23,444 Shares 4%% Cumulative Preferred Stock

Price

Recherches Economlque et

Former Sub-Governor of Bank of France.

Sociales in Paris.

.

the Prospectus.

of

means

/'

!

art,

offer to buy, or us a solicitation of an offerto

offer is

jjnot NEW ISSUES

as

v.

the

v

state.

,

.

,

Wertheim & Co.

Lehman Brothers

not

June 11, 1946




*An

[

address

by Prof.

Rist be-

fore National Bureau of Economic

Research, New York, June 6,1946.

revolt

against

controls

the

established by the enemy

!

•

(Continued

on page

and by

3234)

:.;fv

y.

.Volume

163

Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE

321$

least 100 million board feet to this

Progressand Planning
Under Housing Act
Housing

Expediter

600 million to next year's.
U. S. Forest Service has

to

West for

1

during the

It

war.

is

chief bottleneck ,in j estimated that this will add 150
of $400 liiilliotos } to 200 million board feet a year
for 1946 and. 1947.
|
authorized under ^Veterans Emergency: Housing: Act is to stimulate,
j 1 The! Forest. Service Will
givje
production. Reports assistance received,by t)PA, CPA'and other
j preference; to housing and recon¬
government agencies and workings of priorities system.
Says j version needs in deciding tie bids
chief trouble lies in faulty distribution system, which National Hous- r in the sale of lumber from na'r
tional forests.
Price ceilings re4ing Agency is seeking to correct - Recommends fong range plan- ^ sult
in almost all offerings re¬
ning as proposed in Wagner-Ellender-Taft Bill, which, he says, is
ceiving tie bids.
j
designed to aid private enterprise to do bulk of job.
Surplus salvage lumber, from

;
r

'

use

less specular form than in earlier

and

army

The

navy

is

camps

AAAAA:A-A'AJay.['
'

years

-

Take-

lumber

another

as

despite
subBtantial in-

ample. During April, OPA granted
price increases Jor millwork and

;

creases

in production.
• /

flooring-and for such major'lum't*.
ready Resulted in Vimport^^^
bers 4 as
Douglas ; fir,:; cypress, creases in

-i

.

;.V\ We

big

made a

step

ward:

.

week

„

western

red: cedar

In

;

for-v

price

May

made

this

on

started

production.

hemlock!.

will .be taken

adjustments: were

softwood,

.

nigiht miracles.

central

south

.can

get

lumber

and

stock

,

ments

>

plans,

retroactive
June : 1,

:

to

to

r e p r e s e n
:

tatives

J three
-

%i

of:

tries.

The

"

1

materials

building

:

Wyatt!

Wilson W.

"

This

!

is

first

the

■

«

increases in Critical

terials.

would

involve

seven

securities, and it still remains to
be

implies that the Treasury includes
in its overall picture a very large
proportion of Treasury Bills and
Treasury Deposit Receipts. To the
extent that this involves borrow--

bow far the

seen

successful in
In

this

tapping

new

new

sale,

the

'X.

or as an

'V..'.

'

-

duction figures.

Savings Certificates

were

Not only are

housing loans get¬

as'

large

ting cheaper for Local Authorities.
The Derwent Valley Authority is

Sawmills facilif

the

as

be. There

redeeming

£1,250,000

its

of

signs, however, that

Treasury is not alarmed, and

has the situation well in hand.

5%

,

.

,

jki530,00(iSil65si#^^B

proj-

We

The Dayton Power and Light Company

plywoo|l

,
4

output for the next three months.

•

The

boost in papepliner shipjItoentst rin June should ^result; in

#ore gypsum boardf and lathz by
t
July. The brick payments will
1 Cause bid plants to be
reopene^
old kilns to be patched Tip and
„

$7 Par Value

-

put back into service, and wiH
plants to work longer
X hours. By July and August the
in^
s
"

permit

;

creased

production

from

Price $35.75 per share

these

•

moves should be felt all over the
J

country*

;
Similar plans

/-*

;

Other industries.. In
"

i

- j

-

are

-

'PL

underway for
general,

wfe

Copies of the Prospectus

are moving f'rst in the
material^
X fields where the shortages are the
most critical or in v which prief

the

undersigned

•

■J

may

may be obtainedfrom the undersigned Only fry persons to whom
legally offer these securities under applicable securities laws.

muim payments can be put into
effect most quickly..

.

'

In additionto premium
Payjmentis, - many other steps have
C been taken by G o v e r n m e n !
*<■■
agencies to speed up nroduction

Blyth & Co., Inc.

Mellon Securities Corporation

.

4

Of

building materials. Here

are

100

,

:

V

;

The First Boston Corporation

increases- affecting
lumber and other buildmg supf
plies since the first of the year.
and price ceilings are not now
a-major obstacle to production
-

'The Wage Stabilization Board

was causing a mannower shorts

?

Ladenburg, Thalmann & Co.

price

has approved many
necessary
wage increases where low pay

•

affecting

materials

HaUgarten & Co.

The USES has recruited

labor!

Lee

Higginscn Corporation
'

•

"

,

Wertfceim & Co.

White, Weld & Co.

(

*' i*

E. H. Rollins & Sons
"

r

Incorporated

Central Republic

Company

(Incorporated)

A. G. Becker & Co.
*

Incorporated

;

..

A. C.

Allyn and Company

;

X

e

Dick & Merle-Smith

Incorporated

,

L. F. Rothschild & Co.

Blair & Co., Inc.

Spencer Trask & Co.

Tucker, Anthony & Co,

Laurence M. Marks & Co.

Eaker, Weeks & Harden

Graham, Parsons & Co.

pro*

age

ducers.

i

'

CPA

has

granted

These agencies

gether.

For

T

Stabilization
proved

an

are

working to¬
example, the Wage
Board recently ap4
additional wage in-*

ceiling price of this pipe.
■

-

■'

..

V».-

•

'i"1}-

.

■„

'-I*. :V.

;

1

vi.'t;'

*An address by Mr. Wyatt be-i
'fore the Buffalo Chamber of Com¬
merce,

394-3.

Pressprich & Co.

Haydeh, Miller & Co.

Reynolds & Co.

Schoellkopf, Button & Pomeroy, Inc.

Stroud & Company
'

incorporated

Sutro & Co.

G. H. Walker & Go.

Coffin & Burr

The Milwaukee Company

Incorporated'

Ehvcrthy & Co.

Fahey, Clark & Co.

^

.

v

First California Company

Alex. Brown & Sons
.

^

*

.

Granbery, Maraehe & Lord

to

get more cast irorj
soil pipe and at the same time t*>e
OPA apnrcved an increase in the
'

R. W.

o^

^crease for the southern group
foundries

Estabrock & Co.

nriorities

X ^ for equipment needed by mateVX rials
producers
and - assisted
them to get scarce, materials. 3

:

Eastman, Dillon & Co.

Rcrnbiower & Weeks

The OPA has granted nearly

■

'

Bear, Stearns & Co.

i

few of them:

.

Buffalo,

N.

Y.,

;




June

5,

Johnston, Lemon & Co.
.

f*-.

■

■

.

"

X.'

r

-

'

^
v-: v

■

f.ffj *-3

.

.

'■

'.y-

Carl M. Loeb, Rhoades & Co.
,-

:

^

,

••

-v

*v?

'

-VA*.;.?

•

•* j.>*

f

^

A <:;■:?*

:

*\y

-••*

t

A

Newhard, Cook & Co.
^

f

■

v

.

-

•

•

•,.-

Phelps, Fenn & Co.
.

# '

..

• •

•;

Shuman, Agnew & Co. Stifel, Nicolaus & Company \yestheimer and Company Whiting, Weeks & Stubbs
'X..?; X'!'Incorporated
K,

.June 10,

1946^C.^v-^i£.Vo-C^

cashed

perhaps they should

are

no circumstances to be construed as an offering
of these Shares for
offer to buy > or as a solicitation of an offer to buyy any of such Shares.
The offering is made''only fry the Prospectus,
r
j

•

some

at the fact that National

bbildihg maj-

expect these payments tp
Cause a 25% increase in

loan is

savinga.

connection, there is

concern

This advertisement appears as a matter of record only and is under

'

days^

A good deal, of
course, is money
realized from the sale of existing

which

at

aim

.

subscribed in the first

subsidy,

any

rates

were

level

new

The
new
"tap"
issue—2^%
Savings Bonds (ER18:3)—is going
well,
£94,000,000
having .been

the Government could borrow and
cover the costs. This
presumably

(Continued On page 3244)

These payments will be
for - production over thfe

made

not

since* these

;

;

the

ar$

of

use

-above quotas based on recent
-

(operative since August

rate

indicate

Act

-

-

sawmill.

a

Veterans Emerp
to stimulate

passed

Housing

gency

log to

Government timber stands, a
step that is expected to add at

$400,000,000 authorized under thp

A recently

1

Take

way

similar
and are

at.

j

ioftwobd plywood,strueturalclay
"products and gypsum paper lineri
•

r ■■■-''■■

•

months,

which Local Authorities will

and

than 15 years. The

to

indus-

industries

three

parts.

were

recent

any

more

taken

ing by the Treasury at these rates

millwork.
S?y we
provided out of
the money authorized by the Vet> out- witll. Pphderosa pine logged
on the West. Coast.
erans Emergency Housing Act to
Normally it
build access roads to out-of-the- takes about two weeks to get the

stair

$15,000,000

than

ing short and lending long the
in May to a larger extent than
government must be on; guard,
|
says the "Times," against "a hoary they were bought; and. that. net
starit malpractice."
"small savings" in general are not

from

submitting

.

in

favorable ti>

are more

borrowers

issue

1945)
varied
between
2%
and
31/8%. Mr. Dalton said that lend¬

overf

specific
premium pay-

.

Fund,
mainly for housing, will

old

It takes time to
* a
forest' to a

•

Loans

years,

ali-

hardwood softwood

moulding building site.
;

offering
OL
a
2%W

21/2% for

X,r

area

we

,

are

Local

and
into

be advanced at 1 *£%' for less than
five years; 2% for 5-15

Other steps
But

result in

;

stock 1963-6 to be issued at 98%.

the

the

1

conversion

These terms

which

heeds arise.

as

ofthese

none

northern softwood, northi-

eastern

i when;

and

agencies.
IX; X
1
Steps such* as these have

Sept.

on

June i loans to Local Authorities

due to

r

«

The ;• Chancellor
an¬
May' 30 that from

on

from

mentis worked but with War As«,<fets. Administration
and
other

ex*

holders

nounced

shortage of building materials is the number one bottleneck
get into normal channels within
|£iii housing, and building materials will continue to :be in short supply the next 90
days, under arranger
-forythe>next'
two

stock

months. :;

.

••

:

are

In the recent issue of "Economic
Record," published by Britisli
Information Services, it is stated that the downward drive Of
interest
rates goes, though perhaps in a^-

emergency period as

an

done

;

is

home building, Mr* Wyatt discloses first

declining rates continue and thai
putting out issues under 2y2%. Says new
British 2i/2% Savings Bonds are going well.
local authorities

;

agreed to the overcutting of tim¬
ber beyond normal yield in cer¬
tain localities of the Southland
was

yEmphasizing building materials shortages

British Information Services says

The

By WILSON W. WYATT*
National

Reports Downward Trend in British Int. Rate 3

year's lumber production and 500

v

-v

'■

■

,

3212

.

X

.Y

■

/' THE COMMERCIAL & FINANCIAL CHRONICLE

u -r

that

warned
ahead.

Interest Rates and

This

theory,

Dr.

Moulton

holds

interest

// (3) final
variables,

Institution

tion,
with

,

recall

I

which

saving, (2) investment, and

In this

I

machine tools and chemicals. Says air transport
selling at highest of any group and trend of bank stocks

tural equipment,

stocks
will

are

depend

high.

had ^ in/London/ in/1924

business

on

•

application of the general theory of
stated that an increase in the rate of interest,

six months (June and December), I prepare a brief
of leading industries and here follows my outlook for the

Once every
summary

second half ol^

came

to be re¬
as

great

signifi¬
because

it

lie

v e

My

d;

b

for

ball League, both of them in the
"Longs" Division, with two teams
climbing out of the cellar, Harris,
Upham & Co., by defeating DeCoppett & Doremus, 7 to 5, and
Or vis / Bros.,
by / winning;, from
Merrill Lynch, Pierce, Fenner > &
Beane, 8 to 6.

of

credit

analysis,

the

y

the

conclusion

rate

the

stabilization of
Harold G. Moulton

business activ¬

the

that

matter

interest

'

LEAGUE

of

negligible
volunie of current lending. As a
cost factor interest was usually
insignificant in; comparison with
wage and other costs—especially

ity. In pern
of rapid business expansion,

was

a

STANDINGS

Carlisle

1

.500

2

.000

count rate

narily accompanied

Goldman, Sachs

0

scale
full

of output

and a
capacity.

of

use

the

interest

*A

portion of

an

address by Dr.

Moulton before the 25th Anniver¬
sary
reau

Meeting of the National Bu¬
of Economic

Research, New

expanding
relatively
So far as
concerned,

,000

cost

v

Aircraft Manufacturing Stocks:

selling largely on
From this
point of view, some of them may
be a good speculation; but the in¬
dustry as a whole is uncertain.

-

are

liquidation value.

This is

a

0

1.000

growing industry and will do a

0

1.000

tremendous

DeCoppett & Doremus

2

1

.667

simply did not

1

1

.500

1

2

.333

0

3

.000

Bros.„_._____i_.u

Harris

Upham

.

Merrill Lynch

,

At the most, rising in¬

regarding

On the down

as

side, fall¬

Raymond & Co., 148 State Street.

ing interest rates neither checked
of

business

Mr.

Perry was formerly
Ralph P. Cair & Co,

nor

business

for

some

but the rates are
governed by federal authorities.
Moreover, the airlines neither

years to

own

BOSTON, MASS.—Sylvester C.
Perry has become associated wilh

were

contraction

high prices have

1

& Co

warning sign that troubles might

the

if the

it

2

Hirsch

Perry Now With Raymond

York City, June 6,1946.

as

Air Transport Stocks:

a

lie ahead.

but

Security Traders of N. Y.

count in the calculations of busi¬
ness men.

-2s

"Longs" Division

selling

now

Orvis

short-term loans were

terest rates
r

an

looks

.500

1

would, through the in¬
fluence/exerted upon the rates
charged by member banks, check
the
volume
of
borrowing; and
similarly in a period of recession
the lowering of the discount rate
would stimulate a resumption of
borrowing operations and attend-

no
for

Bank

come;

their terminals

nor

the air
-

through which they travel. Today
—based

on

both book value and

earnings—they are selling
highest of any group.

with

the

Agricultural Equipment Stocks:
is a fundamental industry

This

Stocks:

In

• *

l

;

of

view

the

tremendous; deposits, a small in¬
crease-in interest rates
on
the f
banks*

investments

should

loans

and

help earnings.

What the

future interest rates are to beis

anyone's guess.

auto mo bile

1

1

M.

be

stocks;

their

0

C.

to bomb¬

reason

Roger W. Babson

These stocks

& Jacquelin....
Loeb, Rhoades

the

troubles

may

Pet.

N. Y. S. E. Bond Brokers

account

picture industry and similar
groups enjoy great prosperity and
dividends should continue liberal

ing.- There

1,000

reduction in unit costs that ordi¬

into

mo¬

tion

for another, year or two.

u

and

1.000

when

took

few

but is
very
vul¬

bor

O

Lost.
-

2

an
increase in the Central Bank dis¬

one

a

;

The

Stocks:

Amusement

nerable to la¬

0

Won

2

/

boom

dividends

continued

of

is

>

"Shorts" Division

...

a

discounted the immediate outlook.

Saturday. June 1

N. Y. curb Exchange..
P. V. Poster
-^,

promise

for conservative investors.

years;

Only two games were played
last week in the Wall Street Soft¬

standpoint of the
lending bank and the borrowing
corporation, long ago led me to

man
y/f't o
furnish the

key

from

for

League Scores Reported

central

a

studies

both

be¬

was

War

/profound influence
business conditions. : /
;

upon

prac¬

tical

exert/

to

of

cance

World

first

banking institutions had demon¬
strated
their
capacity,
through
manipulation of the discount rate,

and vice versa.

This /theory

garded

the

to

loans;

The

dustry should
have

ment of. busi¬
ness

:

Stocks:

Wall Street Soft Ball

ing expansion of business. In fact,
it came to be believed that prior

curtail¬

a

>

automobile in¬

woula result
in

—•

m and the better-grade stocks have
security and a i fair
Automobi le both * real

1946.

out

discount
policy.;
I chal¬
lenged the underlying validity of
his assumption and pointed to the
(Continued on page 3235)

value, it was long
other things equal,

are

.

Bank

' Interest Rates

an

Holds building stocks

future of interest rates.

/

cycle could readily be
by a proper Central

levelled

.

Summarizing immediate outlook of various industries Mr. Babsou
looks for boom in automobile stocks, continued growth in agricul¬

connec¬

Keynes,, who was. at that
absolutely certain that the

time

.('■'

By ROGER W. BABSON

our

conversation

a

Thursday, June 13,1946

..

Onllook for Different Industries

'

.

/

As
ago

money

in

/

.

no

so

historical record.

capital formation, and holds these may be independent
Wants an overhauling of economic theory.

>./
:

(1)

as

//
finds

moreover,

had
apparently
obviously correct to'
classically-minded scholars that it
was
unnecessary to examine the

determining volume of current lending, and interest cost does not
count in calculations of business men.
Lays down stages of
capital formation

were

theory

seemed

of negligible importance in>;

is

rate

The

MOULTON*/

Brookings

-

financial and business experience.

Capital Formation
President,

days

verification

statistical

By HAROLD G.

better
u

-

•

"•

•

Beverage Stocks: I know

>

noth¬

ing about liquor stocks. The out¬
look for the
soft
drink; stocks
should be good after the sugar
supply has become normal, but
prices of the stocks may already
anticipate this.

Building Stocks: Unless there is

buyers' strike; the building in¬
dustry is headed for a remarkable
boom* On the other hand, build¬
ing stocks are high. I had rather
buy well-located real estate*
a

,

Chemical Stocks: Although they
now look high, with small
yields,
are
still attractive., The
chemical
industry
will benefit

they

wonderful discoveries

from some

in the

laboratory stage. Also
the industry has a very small la¬
bor expense and its basic raw ma¬
terials are relatively low priced.

now

Clothing Stocks: These appear
good future—especially
manufacturers of men's clothing,

to have a

shirts, shoes, etc. As to the textile

This advertisement is neither

offer to sell nor a solicitation of an offer to buy any of these securities.
The offering is made only by the Prospectus.
' '
an

group,, the rayon - manufacturers
continue to be the most favored.

Stocks: / These

Container
fered

suf¬

'

conversion troubles and

no

will continue to do a good busi¬

ness; but the stocks appear fairly
well-priced in view of recent
earnings, ■

The City Ice &

Fuel Company

Stocks:

Equipment

Electrical

This industry as /alwhole
do

should

wonderful business,' but it is

a

beset

by labor troubles and in¬

tense

competition/

$12,000,000
l?h% Sinking Fund Debentures
.

'

'

.

,

_

'

%

»C's"

'

~

'

'

•

,

'

,

>,

.

.

,

due June 1,1966
"

'

•r

The food

Stocks:

Food

indus¬

tries, such as baking, dairy prod¬
ucts, corn refining, meat packing,
all rearing

are

to go ahead and
,

.

■

•

waiting only for a green light at
Washington.

Price 100%

Machinery
and accrued interest from June 1, 1946

there

Although

Stocks:

exceptions, the machine

are

tool industry will be best for some
time

by

hand

Its

stock

prices,

however, are not over priced.

114,827 Shares

Sales and

Merchandize Stocks:

Common Stock

will probably hit

earnings

peaks this
ever,

offered initially by the Company for subscription
of its outstanding Common Stock pursuant to
rights which will expire at 2 P. M.; E. S. T., June 27, 1946

The Common Stock is being
at

second¬

tremendous

a

market.

$34 per share by holders

new

I prefer, how¬

year.

the chain stores, with their

assets distributed broadly throughthe

out

country, rather than the

department stores with their as¬

concentrated/in

sets

The

Prospectus

may

be obtained in

undersigned\

any

as are

State from such oj the Underwritersy including the
registered dealers in such State.

cities

Mining Stocks: There
increase

continuous

a

for

mand

non-ferrous

the months ahead.

III A G. Becker & Coil
Incorporated

■»

\

few large

a

subject to bombing.

are

also

in

the

f|S|| Glore, Forgan & Co.

metals

Kidder, Peabody & Co.

Ladenburg,Thalmann &. Co. Union Securities Corporation White,Weld &. Co.

"bombing-proof"

"




*

.

;

Office

office

of

be

Equipment

»-

Stocks:

The

equipment companies have
suffering from the

reconversion;

grade
104b

in

Mining stocks

'

been

IS

//-

in the de¬

group.

Eastman, Dillon & Co.

.

should be

stocks

attractive

demands

but the

better-

should continue to
to conservative in-

\;.a-

a-/"'—^/v'/,

'>.''li .'/".''••i:V:''-

:C--;1

Volume 163

v.-,

^

'"P1"r:■:"',:V'

v'■

V ' I;'-'

Number 4498 '

:■

"

1

/'v''/' ' V'V:1-

■

■: \

v

THE COMMERCIAL & FINANCIAL CHRONICLE
lihood of

Britaixi,s Gold Reserve

10%

few

next

permitted

Woods

Bretton

.'-v-'by paul einzig

devaluation within the

a

limit

under

the

during

Plan

the

Britain is

years.

now

by norman crump

able to

Dr. Einzig, commenting

export to the limit of her
physical capacity, and a devalua¬

the official secrecy regarding the British
gold and foreign exchange reserve, calls attention to rumors of its
dwindling amount and of possible devaluation of sterling. Holds,
despite pressures for publication of figures, secrecy will be maintained, and that there is no likelihood of immediate devaluation of
sterling within the 10% permitted under Bretton Woods Agreement.

Y

^
■

:

M.

on

LONDON, ENG.—There

are

signs of

tion

re-*

exchange

r

—

serve.
The Now that there are no speculative
only figures fluctuations under the prevailing
published system of restrictions, this cause
since the sus¬ for secrecy also ceased to exist.
pension of the
Nevertheless, the chances are
gold standard that in spite of pressure for pub¬

in

1931

were

contained
t h

e

i

n

material

;

submitted

by

licity,

This is due to the fact that
be

direct

no

about £

1945. This amount included dollar

balances,

American

but

sterling

balances,. which are freely
vertiblef into' dollars, were
ducted from it. The
value

of

excess

the American

con¬

de¬

of the

securities

deposited with the Reconstruction
Finance Corporation over the'out¬
standing amount of the dollar loan
which they secure was not included. This

creased

excess

quite

beneficial

be

from

Don M.

long

rumours

to

cently come

circulate

*

l

Ave¬

days

£1,-

-

crease

his

up

who

son

i

n

in bank

deposits from
£2,250 to £4,860
Norman

was

much

are

the

En

to

route

his desk in Toledo

City. There is not the least like-

Episcopal

a

must have in¬

are

then

New

on

in

a

are

But

if

all

move.

clothing

So

and

else under control.

British

v

supporters of the loan,

by

its ratifica¬

secure

Parliament,

claimed

The final

securities for

sale,

or as an

December last to understand from
official

quarters

loan is

unless

(Continued

page 3215)

on

in

dollars

•

of record only and is under no circumstances to be construed as an offering of these
offer to buy\or asa solicitation of an offer to buy, any of such securities,
The offering is made only by the Prospectus,
1
i ** 4
^

the

obtained, Britain wotild be

without

left

that

seven

NEW ISSUES

oi

eight
weeks.
Official
quarters
while reluctant to commit them¬
selves

in

even

private

tion to such definite

American

conversa¬

forecast, al¬

lowed it to be understood that the

dwindling rapidly.
Mr. Dalton himself, in his speech
in the House of Commons during
the ratification debate, said that
reserve

Airlines, Inc

was

'

L*.
4

the

giving the
figures of our dollar reserves made
a very depressing reading.
Yet
month after month passed, and in
spite of the delay in the ratifica¬
tion of the loan by Congress, the
Treasury does not seem to have
weekly

4

,1

returns

^)

<:

'

'«

«

7'1 _7'
■"
v<,

'1

s:?t

,

V

4

$40,000,000
•,

-

'

-

.

,"•*,»*

r

.7

i-v

,

V

/n

~

'**'

.

^N

' •

"»

?

'

'

i,

v,

t

if

-*4

*•'

v

,

*

3% Sinking Fund Debentures, due June 1, 1966
,/

'*<}

'

'

'

ji

L

'

-

'

'

i

..4.1 •!.',?

£

*

7

S? }"'*

4"

v

'*

1

-

*

5

.

„

-

r

Price 100%
and accrued interest from June 1,1946

short of dollars.

run

In

April it was stated in British
quarters in Washintgon
the credits granted for the

official
that

400,000 Shares

purchase of Lend-Lease goods "in
the pipeline" became exhausted,

s

,

&

'/rn ) ',\v Hiv'r

-

*'

,y

-

•.

cv,',"'''''1

v1

(Vi/ V/'

5

«r

and henceforth Britain had to en¬

croach

her gold

on

3V2% Cumulative Convertible Preferred Stock

This

reserve.

appeared to.have implied that at

(Par value $100

the gold reserve must
have stood within reasonable dis¬
time

that

from its figure of October,
In well-informed quarters

tance
1945.

Price $102 per

this is indeed believed to
No

case.

be the
information is

official

per

share)

Share

and accrued dividends from June 1,1946

available, and the Treasury, while
sending monthly information to
the United States Treasury, is not

publish

to

prepared

fresh

any

figures.
1

This

policy of secrecy has re¬
become' subject of some

cently

criticism.

while it
the

Copies of the Prospectus may be obtained within any Statefrom such of the underwriters^
including the undersigned, as may lawfully distribute the Prospectus in such State.

is pointed out that
fully justified during
to withhold the publica¬
It

was

war

tion of a figure that would have

helped the enemy to form an idea
about
Britain's
economic
war

potential,

that

consideration
valid.

be

to

ceased

figures relating

is

reserve

has
true,

to the gold

exchange

foreign

It

and

fhe

was

fheir

1

'

»

4

Lehman Brothers

Smith, Barney & Co.

W

L

-

'x

' 1

'

'

•

~

**

Blyth & Co., Inc.

-

*

I

•

^

:
r

Glore, Forgan & Co,
''

'

i

"

*

f

\\"

Eastman, Dillon & Co.

•' 'C

Emanuel, Deetjen & Co.
..

'•

c,

•

V'-ovV."

'

'

'l -%

The First Boston Corporation

Goldman, Sachs & Co,

Merrill Lynch, Pierce, Fenner & Beane

between the suspension of

gold

break

•

were

kept confidential even in time of
peace

Kidder, Peabody & Co.
'

standard

and

the

of the war. But this

justified

on

the ground that

publication

speculators

out¬

would

assist

in foreign exchange.




Stone & Webster Securities Corporation

again

June 11, 1946.

Union Securities Corporation

re¬

whether the net change in the ag-

This announcement appears as a matter

in

with

sult may be the same in each case,

considerably since

effort to

an

tion

too

everything

the conclusion of the loan, owing
to the rise in Wall Street,
in

cotton

lifted by 50 or 100 points

single

utility

effect upon the national economy.

Friday.

a

controlled, what hap¬
pens is that they do not move at
all for perhaps six
months, and

still

rising here
and there. For example, prices of
York, utility clothing have recently been
Mr. Craft stopped off in Washing¬ increased. There are also rumors
of forthcoming" increases in agri¬
ton, D. C., Baltimore and Phila¬
cultural
prices and railway
delphia. He left Wednesday for
charges, and if these rumors are
Buffalo and expects to be back at
correct, the result will have a big
V ir gi n i

notice.

prices

millions.

Prices

Crump

Under

point of fact they do so. If the
price of a particular grade of cot¬
ton rises by five points one
day,
relapses by two points the follow¬
ing week, and then rises by eight
points a little later, no one takes

a

parallel

in

free economic
system, prices of in¬
dividual goods and services are
free to move every day, and in

millions

today; with

to

necessary

First,

millions in

3 4 0

however,

system of price control.

£500

to about

-

there is the effect of the
general

from

pre-war

is,

view the position and outlook
their proper perspective.

circula-

o n

about

Craft, partner of Collin,

pick

./fit

as

note

in New York City. Mr. Craft

Va. to

re¬

in

ad¬

duced, such

drove to New York by auto with

to¬

that have

—

been

the rise in the

'

/

f

o

his wife, stopping at Lynchburg,

wards disposing of the absurd de¬

valuation

^

has been

a certain amount of
possibility of inflation. A certain amount
evidence &

has

v

Toledo, Ohio> has been visit-

nue,

nig

this

way

this

on some

Norton & Co., 508 Madison

School.

a

put

I?ur|)nf,
Pas*,^,w weeks there
talk in Biitain about the

Norton Visits N, Y.

edly

go

England,

re¬

real

Don Graff of Collin,

For the unexpect¬
size of the gold re¬

would

in

produce bemre it

senses

t i

attending

serve

must

consume" and

British Government

or

point of view.
large

can

of

rise

the

would

maintain secrecy,.

At the present moment the pub¬
lication
of
the
reserve
would
doubtless

affairs

of

right. On the other hand,

the

450,000,000 in October

"Sunday Times"

inflationary tendencies

points out "the plain fact is that the nation
«

future occasion publicity might be
harmful.
Hence
the
desire to

Keynes flight of capital, the anticipation
United of a devaluation of sterling that
State Govern¬ might arise through a sharp fall
ment
during in the gold reserve would never¬
the loan nego¬ theless produce unfavourable con¬
Foreign
importers
tiations, and sequences.
Paul Einzig
published would abstain from buying British
after th6;con-: goods, in the hope of being able
elusion of the agreement. Accord¬ to buy cheaper after the devalua¬
ing to these figures, the gold reserve tion.
was

of

state

Lord
to

British economist, recounting

.

even

speculation

further

a

Disclosure

sources.

though in existing conditions there
can

to

nearing the end of its dollar

will be maintained.

secrecy

simply

work, not spending, is still the need. Says
inflationary dangers and is attempting
British prices.
These considera¬
to offset it
through a new savings bond issue. Holds this may not
tions are well known, and the
only reason why in spite of them iS;be effective, and best safeguard is an increased supply of goods/
Sees Anglo-American loan as
the devaluation rumours are not
deflationary for Britain, and con¬
dismissed outright is that it is wide¬
cludes, for time being, inflation is being kept under control in"
ly believed that the Treasury is
England.
•■'.-■'V
lead

would

revival of agitation in

a

would

giving away part of the
foreign exchange proceeds of her
exports. Moreover, a devaluation

favor of the publication of the amount of Britain's gold and foreign

■'

sterling

mean

■'

p-

of

Financial Editor, London

White, Weld & Co.

forward

looked

In

Expressive,Vibrant Democracy
M. VINSON*

By HON. FRED

'■v

7.7/

7/:/7;/. 7:777|/:7

Secretary of the Treasury

jthe answer.--.

to

give

will

■/; 7;

1 ■

7 '7

us

'

this backward glance, I do
to7 go. back to pre¬
historic times, or : to the Golden

j

In

pot

;Thursday^ June 13, 1946.

FINANCIAL CHRONICLE

THE COMMERCIAL &

3214

propose

the majority of us did not
recognize it. The simple fact that
our quest for the fundamentals of
put

jfreedom, peace and security is un¬
der an almost constant threat, is a
beyond doubt that
must be strong, alert, industri¬

Age of Greece, or to the

^

Ilewly nominated Chief Justice tells of Americans* quest for Free-- •
(j(om, Security and Prosperity, and urges a new synthesis of particu-7
l'ar problems so we can develop a more expressive and vibrant;
democracy. Sees need for more interest in welfare of whole people,

fact that shows

Decline, or
even
to: the

we

Roman
to the Renaissance, or

founded

us

day

fathers
Rather, I

pur

this nation.

.

ous] and of high purpose.

<

j: Second, that while our basic
myself to what goals and wants have remained
during-the last the same, most of the immediate
30 years I hope that I have had
problems in the filed of what we
tiud says although there may be difficult problems and much incom¬
some
understanding of what I call current events are of very
have seen.
By a happy coinci¬ short duration.
Often what has
plete work ahead, new generation has a better foundation on
Co build, as well as an unmatched production machine, a stable jg dence, that is a good place to be¬ seemed like a world-shaking mat¬
gin, for we can call that time ter of indeterminable duration has
economy, and a more honest effort and cooperation among nations
about the beginning of my gen¬ soon left the scene and another
None of us wants to lose any of ttibse personal liberties we won
eration, and you are about to start has
appeared. 7i In
perspective,
in 1776. We never want to be afraid to speak or listen, to read or the next generation.
most current events seem terribly
write what we &transitory.
From this we know
pleas e. We sporting events and other amuse¬ :
7 Previous Situation
that life is not static, that the
propose to limit
I have seen, and

which

want to

never

afraid

be

worship
fit.

see

as we

We do

want

not

to

to

be told where

We

ments.

be

to

want

religious

support

able

be able to
college. We
do not want to be in a position
where we are afraid of the con¬
We

efforts.

want

to

send our children to

how

to

work.

sequences if we lose our job.
do not want to feel that we

We

do v not

burden others when we grow

work

to

be

to

want

or

told where or
how

We

live.

to

want

to

we

we

We do not want

attempts to benefit at the expense
of another. We hope that it will

say

we

want

to

see

power

again be necessary for our
children to bleed and die in order

never

to

want

we

We want
so

live in an

nomic devices whereby one group

T7e want to do worthwhile

work

unstable world.

to

to

want

freedom.

And

want

not

do

do not want to see the use of eco¬

want

impinge

-7;

when

mean

when we

mean

that

not

leaders.

our

We

we

want security.

to

We do

others.We

for

choose

7

what

will
old.

This is what

Secretary Vinson

1 our¬

selves.

right

is

This

say we

We

politics, with na¬
tions
jockeying for' position to
force their will upon others.
We

govern

7

to

charitable

and

a

work,
enjoy doing it.

decent return for our

that

we can

to preserve
want
to

take care of

ourselves and those who

are

our

sterism

dear

our way

of life.

We

country to remain strong

discourage international gang¬
and

to protect us if: we

The

of 30 years ago, scene rapidly changes; and there¬
situation wherein fore we must make our society
nations was being organic, and see to it that it grows
He heard much about and grows.
' . *

graduate

in 1916, faced a
the peace of all

destroyed.

War, 77
Third, I am impressed by

World War or a European

a

depending
upon
the
speaker's
point of view. There was much
agitation as to whether or not
that war concerned us Americans.
Time went by and we

the

war

did

concern

found that

us,' and

we

won.

The

graduate of 25 years ago,
1921, faced a situation wherein
his security was being destroyed.
He was living in the depression
that
followed
in the wake of
World War *1. There was much

in

the

come

are

We want to provide wholeand
ample food,
a
real

again attacked.

Even more

important, we want to have such
cooperation among ■ the nations
that no nation will choose, or

that the
growing season between cause
and effect is much shorter than
ordinarily we are led to believe.
and

soon.

And this

It

truth is even applicable

1104 Burt Building, Dallas

1, Texas

expects, in the near
stockholders regarding a
right to purchase common stock of Delhi Oil Corporation,
all the presently outstanding shares of which are pwned
Southern Union Gas Company

future, to. notify its common

lieve that he faced no grave

lems.
in

a

prob¬

We thought that we were

joy the good of our

constructive

deeds.

period of normalcy, for bUt

».Uv

answer

that

large

a

part

7
of

to why our judgment

is often wrong or the best decision
is not made under our democratic

system, lies in the fact that this is
the age Of specialization.: In all7
fields of endeavor — agricultural,

occupational,

industrial,

profes¬

sional—we have specialized. This7

that many

means

become

of

citizens

our

informed in only

a

rela7/

tively narrow field. This means
that many of our citizens are in¬
terested in only a few specific
problems.
of

our

This means that many
are heard only on

citizens

particular questions, or in fact, >
they may be so engrossed in their
own special line of endeavor that
they are not heard from at all#
;||
The Synthesis of Particular
Problems
•
,

I

feel that the time has

when this trend must be

.

J;

come

balanced

■;

■

interests.

value

problems
I

do

not

and

special'
the]

question

of7 specialization

the]

or

nothing

progress

#0$&

\ 7

77,7A.-7V

is high time to'
specialization by7 a
conscious effort to be aware of,
and informed on, the subjects thai
claim only that it

1929, as long as we
did the wrong

are

they

important to us all, though
are not a part of our owrt

vocation.

great need for people
the whole of our
problems. There is a great need,
for people who have as their sole,
major goal the welfare of our
people7 It is obvious that such people
There is a

who

can

see

im those posi7
broad policies are.
determined and' (executed. 7 But
there is a need for these people
who are well-informed, and whG
have a broad view of our common
are

needed

most

tions wherein

welfare, through all of
Ions of our society.

Must Develop a

the eche-

'

"

'

More Expressive
/'. * ; V

Vibrant Democracy

or

7"

„

well, but reminded that tainly a program of positive1 ac¬ picture. Moreover, these two goals;
tion.
We all know that victory are not necessarily mutually exT
competition was lively.
The graduate of five years, ago was not inevitable, that we could elusive. A person can develop a*
faced problems that again threat¬ not sit back and let it come. We special line of endeavor and at thg*
ened the peace of all peoples. In won because of what we did,; be¬ same time maintain a civic atti¬
June -1941, as
25 years before, cause we did all of the job, ;and tude which allows him to vievr
Americans were debating whether because we did it well. And we society's problems in an objective
orrin- fashion, and devote some time te
the war concerned us, and terms shall now have stability
such as-"isolationist" or
"war¬ stability in our country and in the their study. While a democracy of'
monger"
were
being
bandied world because of what we believe 140 million people cannot operate
about. He heard -the charge that and do, or because we fail to tpink in exactly the same form as it did
democracy -yvas soft, inefficient, and act. Even our most important when our communities were first
.

purchase rights. To such holders there
following effectiveness of the Registra¬
tion Statement, full information regarding the purchase
right, including a copy of the related Prospectus.

to exercise the

will be mailed,

does not constitute

an

offer to sell

or

offer to buy any security,

such offer to
be made only by means of the Prospectus. It is intended
simply to notify you in advance regarding a7 purchase
right (the provisions of which have not yet been finally
determined) which may be made available in the future
and to notify you of the record date fixed for the pur¬
pose of determining stockholders entitled to receive
notice of and to exercise such right when it is announced#
It is

believe

work

Company has fixed June 20th, 1946, at the close
for determination
stockholders entitled to receive notice of and

an

I

thiftg. We began to come out of
We .have given much prestige
7
10 years ago that depression when, and only and remuneration to a successful
found us, solving many of I our when, we began to take positive career where one becomes an ex7,
constructive
steps to meet i the
pert in a specialized field. In theproblems and he found his secur¬
causes and to alleviate the effects.
future, I believe that our people
ity being rapidly restored. He was
We won the recent war because will find and make places as well
faced with a lively discussion of
the merits or demerits of the New of what we did. We outproduced, for those who can integrate our
Deal.
He was
assured that he out-thought, out-lasted and out¬ problems and combine the ele-V
would have a job if he did his fought the enemy. That was cer¬ ments of our society into a whole

of business, as the record date

notice

We
;

The graduate of

complete information cannot be given until all
finally arranged and a Registration
Statement is in effect under the Securities Act of 1933,

This

judgment.

balance^ihis

7,7AA7"'.- V

1926

While

solicitation of

their

particular

important conditions,
and depression, peace
and war. We often begin to pay
for
our : shortcomings
in. short
order. Even the current genera¬
tion soon feels its mistakes* or
benefits from its wise decisions.

apparent.

f details have been

of

use

prosperity

insecure foundations were not yet

by the Company.

the

must

would not wish it otherwise*

to our most

the., inevitability not only of his¬
did
tory but also of the economic

COMPANY

by itself. Men must give it life;
must give it substance;-men4

that has been made as Ef
result of it. We have divided our
work and for the most part each
discussion of what caiised, and
This means that we are not even has done what he best could do.
what would solve, that collapse.
assured of immediate gain if we While *' each becomes dependent'
The graduate of 20 years ago,
attempt to mortgage the future. upon others, it results in a higher
in 1926, was probably led to be¬
This means that we can soon en¬ material
standard
of
living. I

cycle.

SOUTHERN UNION GAS

be

do the job*:

by many people who make a con^
scious effort to synthesize oiir

in the fall of

Stockholders of,

to

proved

men

appears

,

to the Common

has

truth that what we sow we reap,

Does History Repeat Itself?
The graduate in June
Some people in viewing our
probably listened to nothing
history of the past 30 years, which
more painful than an exhortation
liome,
nice clothes,
and
good
health for all members of
our
to live the good life. 7 Five years includes two depressions and two
even
wish, to attack another.
world wars, would say, that it just
family. We want to have some
later, the situation was quite dif¬
That * is what we mean when we
goes to show that history repeats
ferent.
*.
money left for those things that
say we want peace.
The graduate of 15 years ago, itself, and that whatever is to be
provide zest and (variety to life,
On this early summer day of
ouch as books, records, concerts,
in 19317 again faced a situation the course of our nation, will; be.
1946, what is the most critical wherein his
security was being Itdo not agree. History repeats
problem to solve in our effort to destroyed, * and the foundations itself, to the extent that it does,
*An address by Secretary Vin¬
attain these things we want of were so wrenched this time that only because man, with his limita¬
son before the Graduating Class of
tions] acts and thinks ; in such
Perchance a glance at the even his freedom was threatened.
the University of Kentucky, Lex¬ life?
manner that he repeats his mis¬
His
tantamount : question
was
big problems other graduates have
ington, Ky., June 7, 1946.
Our political, social, cul¬
whether he could find any sort of takes.
a
job. There were all the addi¬ tural, and economic life is de¬
termined by what we say, and
tional problems that accompanied
a
collapse in industry and agri¬ think, and do. * We control our
culture. We were in a terrible de¬ course. We, for example, failed to
IMPORTANT NOTICE
come out of the worst depression
pression^] and again 7we heard
much about causes and cures, or this country ever had, beginning
to us.

itself

No system can

the

5

,

system
sound.

hoped that information concerning the stock

pur¬

chase right can be mailed in definitive form shortly after
the record date.
7:7: / 7/
777/

conditions, war and peace, pros¬ established upon the Atlantic Sea-7
'
of today finds that perity and depression, are the re¬ board, we must recreate more of:
the atmosphere, more of the givewar
has come and gone, and he sult of what mankind does. j 7
now wonders whether this is the
That our decisions, our choices, and-take, more of the discussion^
breathing
spell before
another are important is further exempli¬ and more of the learning that wa$;
and

.

-

decadent.

whether this is the begin- fied by a basic choice, we rhade found in the old Town HalLmeet-7
He faces at the outset of our national his¬ ings. If we develop a more ex¬
the problems of building the kin
tory. We chose a system of gov¬ pressive, vibrant democracy, we?
The unsolved!
of peaceful, prosperous world We ernment and way of life that is shall all 1 benefit.
sound. It is true that my genera- problems, or the wrongly solved!
want.
tionr has been engulfed by i two problems, in particular fields may"
The Quest for Freedom, Security wars and two depressions, living sooner or later have a detrimental
77*
and Prosperity
under the democratic process. It influence in every sector of our
This brief recapitulation,of tfae is important to remember, how¬ economy and in every geography
ical area of our country.Many
history of my • generation i
ever, that many played a part in
presses
me with at least thrfce the total result, and it is more problems arising out of the rela¬
portant to remember that un- tionship of the citizen to his gov¬
points:
77.7/, -77 '7:7'
/■
ernment, or the relationship be¬
er our governmental system and
First, how constant must be dur
war, or

ing of enduring peace.

(

tween citizens, are a concern top
effort to prese^vg, our way of life, we solved the.
all of us, and therefore .we are*
fundamentals of problems and won the battles. 7 '
to know something:
On occasion we have applied duty-bound
life: freedom, peace/and security?
about the matter and to express
In all except one of these five- our great system in the wrong
our opinions.
The higher the per¬
year
periods
we
recognized
a fashion, or we have come up with
centage of our people actively ingrave threat to these basic values. the wrong answers, and have led
./*Vilcrv*o
fhfl»

vigilance

SOUTHERN UNION GAS COMPANY

By C. H. Zachry, President




/

The graduate

even

the

and

very

v\t

In the other tbere was the threat,

'•

Volume 163

'better
*

Number'4498

>.

government

our

and

economy will work.

,>.I

glad that you graduates
coming to help us, for you

are
"

who

are

had

*

:j

am

'

the!; kind

have
training that

graduating * today

(qualifies

one

of

* to

?take

his

ing to live.

our
.

' THE

"

place

They must

COMMERCIAL & FINANCIAL CHRONICLE

3215

grow and

grow,

Controlling Inflation in Britain

At home there is much work
ahead in building the
expanding,
sound
economy
that we desire.
The
headlines / shout
problems

gregate 'of
a
large
small movements or

every day.

movement.

Many of these

not

(Continued from

But

3213)

page

when certain

number

of

outstanding Govern

loans

ment

single big

a

ment.

fall

{' {{■{

due

costs,

higher prices,

and

all

repay-, familiar evils of inflation.

for

the

Or al¬

ternatively, they must be offset by

,

the

single big
Even if the Chancellor's inten¬ more efficient
production, and so
all-important and many are trans-, movement has a much greatert tion is to limit the amount of this
by a reduction in the number of
itory, and; still others are hot: psychological effect.
new
Savings Bond issue to the people employed in a given in¬
society. The beautifurthihg about problems when all of
Another psychological factor is sums of money which he
the facts
requires dustry. This last may not be a
'a university or
college campus is are known. Nonetheless there is the influence of the end of World
for debt repayments in the late bad thing today when there is a
that' it is ah environment that
ex-] much work ahead, enough for all War ..II. It is .only natural that summer and autumn, the result general
shortage of man-power.
[poses brie to many fields of* in^ of us.
when victory is won, people should will be that until
that debt is re¬
terest and is, when all is said and
think that they are entitled to a
While there are difficult prob¬
;
Britain's Trade Balance
paid, he will be taking money
done, basically an experience in
lems ahead, we have met and, mbre normal and comfortable life.: from the public This may well
There is also the question o£
-learning to live and to live a life
solved tough opes before. 'Your It is not easy to get them to see- have a temporary influence
trade
balance.
Hero
upon Britain's
that is worthwhile as well as en¬
among those who can "integrate
the diversified interests of our

■

are

*

'

joyable:

It

is

not

a

particularly

happy thought, but it is. possible

*

that

training that has prepared you to
think, to level on a'problem, and
to: see the problem in
relationship!

again will you have as' to the
fundamental values of life,:
opportunity to live the stands
you in good stead to help
7whole of life- so completely and
us to carry on toward the
greatest
r
fruitfully as you had while you
goal 'mankind has set; enduring:
were upon- the
campus. You have
peace and prosperity.
; ]
never

good

an

-

•just lived in one of the best en¬
vironments that can be found anywhere in the world.

In

.spite

work

shoulders
Training to Think
"

> You

have

had, moreover, an
especially. good training /in the
most important" quality that any

■

-

man

have

the

ability to
think. Experience and knowledge
-are
helpful and necessary,; but
they are of little value if one has
Vtot trained his mind- to woyk,; and
can

—

-

-

/work well.

Our colleges and universifies are the great laboratories

-

-of

nation

our

in

people to think.

training

If all of

our

could

us

would do as much thinking as
-is done upon our campuses, I be¬
-or

Of

which

the

incompleted;
upon i your:

falls

as

begin ' your

you

can

reers, I modestly submit that our,
generation is giving you a better,
foundation upon which to build
than we received. We have a bet-;
ter chance to solve our problems/
for we have learned from experi-,

Perchance the biggest thing
have learned is that we must

ence.
we

forth

go

to

meet

problems,]

our

We have learned that inaction
be as costly as erroneous

that goods have to be made be¬
fore they can be bought;, and that
the war inevitably left the nation

with

extreme

an

the amount of money seeking in¬

and

widespread
which cannot
be.overcome at once/ Things of
course
are already
beginning to
get better," One goes into a shop,;
hoping against hope that one can
buy what one wants, bnly to find;
to one's surprise that it really is
on sale.
But these are still; only
occasional pieces of good fortune.!
The- plain fact is that the nation
must produce before it l ean con-;
sume, and that today 1 work, and
not spending is still the need,
more money

is

the

and
On

•

not have
desire

to

that

much

not

effect

The

and

who

and "invest" have

regating

in

-

it

upon

reason

both
•

goods

"spend"

tion.

a

psychological

it

shows

that

effect.

the

At

should

we

ing into the hands pf the public,! ment have the danger of inflation
the simple reason that Gov¬ in mind, and are determined not

lieve that

our problems would be
quickly and easily solved.'
By learning to think,- we mean
the ability to marshal the facts in
a ^ given
situation/ to -discard the
-irrelevant, to assess the real vaF
-^ies of the pertinent, to draw the
logical -cpnclusiom. rind toTunder*
^tand • r the relationship /of - that
^problem and its solution with
Mother; /subj ects. • When/one - has
learned to do this, he has learned
^ great thing.
He has developed
omental power. With .mental power,

<more
s

should

we

hide

heads

our

a

from

posed

from

lieve

that

have

to let it become a

while

Britain's

reality.

will

goe?

to*

tend

-

taxation, -subscriptions

• to
and other in¬

Campaign remains
bulwark, and

as

ble

a

sudden

check

upon

the

'

The;

is

that

for

-

,

the

bit further

ahead, it all depends

upon the growth in the supply o;2
goods, the way in which the Gov¬

„

modities.

outpouring of,,money.. .Possibly;
desiring to" put a gentle, brake

conclusion

being inflation in Britain is
kept well under control. Looking

Mean¬

National

ernment conducts its financial af¬

fairs, and the nation's attitude to¬
wards'wages and earnings.
•

.s

certain

only

safeguard,

New Officers for

thoroughly, upon, the
however, is an increased supply of
recent rise .in Stock Ex¬
is. tragic Vo' trK to,
This
change l prices, he ; aniiounced a1 goods available at home.
"duck the issue."- W/hat.we do not;
new
tap ;issue of 18-year 2Vz%! means first of all ah expansion in
do can affect our
we

fruits

time

ernment expenditures of all kinds
is running in excess of receipts

Government Loans

international problems, but I; be->

its

if the*

loan

a

My

for

.

-

money

means more

the United States.

Governs

Savings
an invaluthe wartime
have long known: that this
nation,,
comings. This, howeverj is a long- system of rationing and price con¬
big and strong as it is, cannotrliye
term view, for recently Britain's; trol' continues to
keep a hold upon
in isolation. There are some reChancellor of the Exchequer im~: a wide range of essential com¬
yerberations of the/old c.ries that

action.]

We have learned what

more

deflationary effect in Brit¬
ain, just as I understand the fearj
of my American friends who ex¬
pect it to accentuate inflation ih

Still the Chancellor's ^action may

least

pass-j

economic

of

Suffice it to say that

through,
have

Government Sees Danger
•

and

matter

Anglo~American

■

have

a

at home;
good j
and less money. There is not tha
space to go . into -this last ques¬

money earmarked for either pur¬
pose, '

as

while the latter

Also

habit of seg¬
own
minds

a

their

is

"investors"

always- identical.

people

many

hand

spend money upon

"spenders"

are-,

restrain

may
other

- so

the

goods and services.

.

cam

theory, an export surplus financed
by bank credit is
inflationary,
while an import surplus financed
by loans from overseas is defla¬
tionary. The former means fewer

may

shortage of goods,

Meanwhile

again

vestment,
markets.

learned that' if

Gordon Meeks & Go.

.

wellbejng every
what'we do.,
J

MEMPHIS, TENN. — Gordon,
pavings Bonds; This is not so gen-' production Without entering at
erohs rto the investor as the pre-' this stage into the complex ques^ •Meeks & Co., Sterick Building, is
production machine
now doing business
as a corpora
unmatched in our history.
A1-! vipus; tap issue of 3% "Savings tion of wages and earnings, it is a ution. v Officers are G.
Gordon
ready, since the end of the war,; Bonds which ' closed down last truism to
say that wage increases
Meeks,
President;
Edward
F.
our
production of civilian goods
December, but it was a little more can only be of real value if they Goldsmith, Vice-President; .Jame;i
reached a peak higher than ever
N.
Reddoch,
and
Charles
C.
generous than the .market )iad ex- are accompanied" by an equiva¬
before in oUr history:.
/ \
Crane. All were with the prede¬
lent' expansion
'much can be done
without it,
in, production. cessor firm, of which Mr. Meelm
We, W, a{ stable economy^ pected. Also he is making if sev¬
Tittle. Mental power is a great asWhilq we have some ^evidences of: eral-weeks in- advance of the dates; Otherwise they lead to higher was sole proprietor.
v
*^et; It is a currency acceptable inflation,... ourV
econom^ic .values
;anywhere.11t is mental power in have been distorted nowhere near;
the possession of people with an as much
as they were during any;
> This announcement' is under no circumstances to be construed as an
offering of these securities for sale,
/honesty of-purpose that make. for. previous major war or theor as an
bit

as

much

as

? We have a

•

„

.

period'
any form
immediately^^following. * r 4 ^ \
.mankind;pur{{We haye^more;honest effort and
'{•
cooperation .among, the ;nations'
/: Our colleges and universities
than; we. have ever had.^ Institu-:
/provide an, ideal .atmosphere; for tions have been
in all fields, in

•progress

•of -activity :which
^SllGS. -v? ''I'-

••

rtraining not only to think but also

-to think in

objective fashion.

Ob¬

jective thinking is the besi kind
•of thinking. In fact it is the only
?kind of thinking that is true and

/valid,

thinkingis

Objective

.

through

-thinking

a

problem

on,

Vand only on, its merits. It means
"•the laying aside of our personal

•r

-

offer to buy or ias -a- solicitation- of an- offer to buy any of these securities.
The offer
.of Jhese; securities} is> made, only byn/means;, ofthe Prospectus. ?This announcement
is
published in any; State in which it is circulated on behalf of only such
of the
undersigned as may legally offer these securities under, the securities
■■

>.'■!

v-

people to learn to think
think in an ob¬

the merits, ; to

jective fashion,.

,

*

..

-

*./

>

The Mead Corporation

discount the work
prove

ahead, it may
that breaking down the in¬

biggest hurdle*

$12,000,000

.

ertia and making the start was

our

3% First Mortgage

,

J)cded Jwnfi it

ficult and

some

will

You

•

that

:

.

Due June 1,196$

70,000

4M% Cumulative Preferred Shares
(Par Value $100

The

4^% Cumulative Prfeferred

per

Share)

*

^

Shares ^tire feeing offered ,by the Company (subject

to certain conditions) to holders of, and in
exchange for, its outstanding $G Cumu¬
lative Preferred Stock, Series A, and $.>,50 Cumulative Preferred Stock, Series B.

-

the

Bonds j

.

% and accrued interest

though

helping to bear the yoke, in the
end we shall, as a united
people,'
keep our feet on the ground,; take

faith

r.

at first

seem

even

you
will often feel that not many are

have

.

.

insurmountable;

can

c

.

Price 103

graduates have had • the sound, constructive
steps,; and
^best training that, our society af-; journey forward on the road ob
•lords in all three of these, aspects.
peace- and" prosperity; And so we
^You have learned to look at, and
/

$&,:LCM/;]k;

.......

established/ and

functioning, to. solve interna¬
tional economic, social, and polit-'
ical problems; And while I do not

•

*on

of' such State,

are

*

To help

ihws

<;7V:-

•

NEW ISSUES;

Americans ; have r never, been;
pessimistic / and > should
not
be
tprejudices and personal interests,
now.
Even though there is much
In this day when we so often
hard, work ahead, even though
fsee special pleaders at work, when
4we so often hear references about many of our problems will be dif¬
The "right connections," it is re?freshing to know that there is still
ta conscious effort in many places

.

Unexchanged shares

be offered by the Underwriters

may

as

set forth in the Prospectus.

natural

"rto live, life as a whole. You have
^earned /to-1 think. :.And .finally, optimism '{•rif/riiavC-i^erlcans'.] has
ryou have learned to think objec¬ /more justification today than ever,
tively, considering and consider- before in our
history.;Ing only the merits,, until the
ii——ai
-rS;,'.
Valid.conclusion is reached. •;//;
.

101,056
4% Cumulative.Second Preferred Shares
'

(Par Value $50 per Share)

.

*

,

r

; ;

:

Difficult Problems Ahead /y

/{ You will have a chance to use
These qualities,'for there are dif¬

The 4% Cumulative Second Preferred Shares are being offered by the Company to
holders of its Common Shares for "subscription at $53 per share through the

First Boston

Opens
Washington Office

issuance of

Subscription Warrants, {Unsubscribed shared

Underwriters

as

set forth in the

{

ficult problems
ahead both ; at
WASHINGTON, D. C.—The First
7home and abroad.. We must carry
Boston Corporation is
forward the cooperation among
opening an
The nations that has begun. The office in Washington at 15th and

Prospectus.

-

.

may

be offered by the

,

„

"United

Nations - must continue to

G

Streets, N.

W.

effective

jget together and to work together, 17th. Lucius F. Hallett
«on

their many political, social, and

'economic
-made

charge of the

new

.

We .have

be

' ;/-;■•/ ;{ ;

to

deal with

specific

aspects have been, and are being,
-established/

They

are

previously

way

■• o.S
'

1

legally
ttie

offer

reported
of

be obtained

these

securities

Drexel & Co.

in

any

State

in

which

this

only such of the undersigned
■

securities ' in

laws

of

such

compliance

-

State.

Harriman Ripley & Co.
Incorporated

Croft,

'v,i

just start¬ Financial "Chronicle"




S

Proposed opening of the office
was

,

may

is circulated from

June

will be in

assisted by-Edward

Jr.

Institutions

announcement

I

branch and will

much measurable progress.

problems.

Copies of the. Prospectus

;

Glore, Forgan & Co.

j

in

the!

May

16,'

lone 12.1946.

G. H. Walker & Co.

<

:;-7
»

THE COMMERCIAL & FINANCIAL CHRONICLE

•3216

Thursday, June 13, 1946

occasioned by strikes
maldistribution of supplies.
Will
not
full
production from
slowdowns

Production

Monetary Controls As Inflation Curbs

vs.

"With wisdom and restraint on

(Continued from page 3199)
through
rediscounts
and
short

governments.

term

part of commercial bankers,
be able to preserve the
resent general level of interest
ates
without 7 endangering '• the
vhole anti-inflation program by
.n
uncontrolled ^expansion
of
he
/e

7

Mr. Sprout's Statement

may

The current lack of goods has been
caused

by war accumulated short¬
and the failure of industry

ages

to

get into production
war. This is the chief

since

the

source

of

inflation now.
s
too much space
to attempt to quote from the many
As to the monetary side of the
public pronouncements which re¬ credit."
picture, everyone knows that bank
Mr. Sproul indicated that he deposits have been expanded to an
cently have Seen made. We shall,
therefore, confine our quotations relieved that system credit con- unprecedented degree through the
deficit financing of the war, in
to excerpts from a statement made
rol is necessary, with the remark,
on May 24 by Mr. Sproul, Presi¬
which a substantial amount of the
I should like to think that volundent of the Federal Reserve Bank
government debt was placed with
ary action by the banks would
of New York, before the California
neet
the
situation,
but I am the commercial banks. It is also
Bankers Association, because his
fraid that is a reed we cannot generally recognized that there is
inherent in such a condition a
remarks are illustrative of the
ean
upon too heavily."
It would require

,

and

American

inflation

smother
anche

quickly

industry
with

an

aval¬

if given the
chance? Up to the present, it has
not been given that chance.
As the war came to an end,
great difficulties were envisioned
of

transition

the

in

goods

from

to

war

,

peace-time

production.

Govern¬

ment

statisticians estimated some

6

7

million

people would be
within six months
after the termination ©f hostilities,
or

unemployed

due to reconversion. This
was

forecast

wrong.

general tenor of other discussions
and because Mr. Sproul represents

This

serve

public statement within the im¬
mediate past. According to news¬

reports Mr.? Sproul stated,

paper

other things:

among

"If

we

to

are

/

discharge

our

responsibility for promoting eco¬
nomic stability and for supporting
the
measures
taken
by
other
agencies to curb inflationary ten¬
dencies, we must combat a further
decline in interest rates and must

expansion."

curb further credit

W He stated further that .the Fed¬

cur¬

rent discussions as to how to con-

the highest Federal Re¬
Bank authorities to make a

qf

one

writer, after reading

rol inflation

by monetary means,
onfesses to a feeling of futility
imilar to that experienced in a

aghtmare where one struggles to
un away from impending danger,
>rly to find that, , although he
;akes a great many steps, no prog¬
ress
is
made, no matter: how
nuch effort is expended. It seems
much effort is expended. It seems
to us that there is a quality of
unreality common to most rerent proposals seeking to control
inflation via monetary measures
at

when

time

a

our

whole

eco¬

element

dangerous
This is

inevitable result due to

an

the

size

the

inflation.

of

war.

the

of
,

of financing

job

*

.

;•

f We do not

ket."

receipts

that

larger

government

bonds

or

investors.
Would it have made any great
difference in the overall picture

profits taxes had been
100%? How much

higher could individual tax rates
have been pushed without defi¬

,

.

'
v
something can be done of major
Mr.Sproul stated: "I think many Importance through such means,
and inflation develops to a greater
of you will agree that a generally
higher level of interest rates on degree than at the present (and,
make "no mistake, we are in a
U. S. securities than is now being
paid by the Government would najor inflationary move at the
not be desirable, having in mind present time), will not these same
the. size of public debt and the bankers come in for a great deal
annual cost of its service, although af unfortunate criticism for having
accomplished so little after having
you would undoubtedly add that
iif the choice is between some in¬ "alked so much? Would it not be
.

of servicing the
infinitely greater
inflation, you would

in

crease

debt
■cost

cost

the

and
of

choose the former.;

y

"It is within this area that we
devise

must

policy, using

a

our

control which it, involves,
we

might have to seek

and perhaps

tain the

novel

powers

new

to at¬

objectives.

same

substantially

in¬
the

duction. This

was

labor leaders to

goods

few

to

go

around, would inflationary pres¬
sures
by any less than they are
now?

|

The Effect of Full Production
The

lone

factor

a

of

major

spite of thes difficulties, in¬
dustrial ; production
April, when it was abruptly: shut
off by the coal strike which finally
was stopped through Government
seizure but which certainly would
have

brought the entire country to

be accomplished by
re¬

sponsibility where it principally
belcng«,
ion,

.on

the lack of produc-

thereby

realistic

bringing

picture

a

the

of

of inflation to

more

present

the public?

equivalent of cash.
Our

•

,

m

,

,

industrial machine-tools,

management and labor

*

accom¬

plished during the war period an
output of goods prodigious by
comparison
with
any. previous
period. Even this record produc¬
tion

was

not

entirely free from
,

as an

offer

to

sell

or as an

/•

V

per

The President and

stopping

his advisors,

the Soft coal strike,
to terms which Gov¬

ernment officials themselves pre¬
a

boost in the

applied to only one strike, how
can
the progress of inflation be
halted through tinkering with in¬
terest rates or by raising a great
outcry against further monetization of the Government debt? It

of course, admirable for the
Ijeads of major banks, presidents
is,

of bankers
cers

associations and offi¬

of the Federal Reserve Banks

recognize the tremendous

to

po¬

tential which exists for inflation.

Every power
available in the
hands of the banking authorities

time should be used

further powers
ac¬

Measures Alone

Federal
associa¬
bankers

Banks, banker
and
individual

sibility to assist other agencies in
combating inflation if they were
to
recognize and make public
their belief that monetary meas¬
ures alone cannot be of great in¬
fluence in the fight, against in¬

',r

..

■

flationary tendencies. This would
at least get the emphasis upon
the right part of the picture and
not lead the public to expect too
much
from
mechanisms which
have not proved

the

F. Eberstadt
June 13, 1946.




7

&
>

Not

V777 Effective 7,

tions

Copies cf the prospectus may be obtained from the undersigned only
\"v777.'' ■" V-:1'"states in which the undersigned are qualified to act as dealers
7 7
v-lfi-in securities and in which the prospectus may legally be distributed.

Co. Inc.
,7":;7 7

Watling, Lerchen & Co.
7

by

secured

vances

H

ad¬

Government

less,
great tempest has

feel that a

been

The

whipped up in a teapot.

by the
Reserve

Federal
reached a billion
dollars at its height, in June of
the

end

of

the

first

World

War

to the presents
High money rates had very
little effect in curing the specu¬
lative fever of 1928 and 1929, even
rediscount rates were at

6%, with further penalty rates at¬

time the

rate

rediscount

preferential

was

eliminated,

outstanding against Gov¬
ernment collateral amounted to a
little over $300,000,000, certainly
loans:

not

a

impressive total as

very

the Government
$278 billions.

measured against
debt of around

use

closing the door on the
credit without bring¬

to

of bank

ing undue pressure on the Gov¬
ernment security market, it can
be said with certainty that re¬
7^:7:'
strictive : credit
measures 7 are 7
777'
more
likely to be reflected in 7777'
lower prices of unpredictable ex¬ -.■77"7'

Government issues than

tent for
in a

curtailment of credit gener¬

ally.

-

-

'

point about the
Government market which bears
close examination. A convention
in investor thought has grown up
is

There

over

one

many years

All

the

of

that Government

not sell below par-

bonds should

financing was
this assumption. ;

war

founded upon

If,
inadvertently, any
credit
tightening should cause some of
the longer bonds to break par,
it could let loose a flood of liqui¬
dation. If the longer bonds broke

it

par,

would

thousands

mean

investors

of

to

many
that the

principal of their investment was
in peril because of inflation, not
credit controls. Holders might at¬

to protect themselves
further decline in the
value and purchasing power of
fixed income investments and the
tempt

against

consequent

liquidation

might

proportions. If money
the sale of bonds
be transferred to real

reach flood

from

realized

to

were

commodities

stocks,

estate,

or

inin¬
not
rates.

goods, as a "hedge" against
lation, (a logical expectation)
flation would be aggravated,

moderated, by higher money
Higher Interest Rates
Inflation Control

their worth from

up

though

1945. At the

In
cut

our

and
;

opinion, there is no clear

choice,

as

indicated

in

the

quoted material, between higher
interest rates and the control^ of
inflation. It does
higher

not follow that

interest rates would con-

g

f

,

As

the face of such figures as

In

It is our belief that the

share

y

never

would be discharging their respon¬

Price $25

poor a

good reason to

at

Reserve

$1 Par Value

so

Banks

ing the war and now protracted
by the unsettled labor conditions.
Only production can remedy this
condition.
:

:

-

^'■l77'7:':1'77-f' ■ 7

record, there is
question the effi¬
cacy of mechanisms such as re¬
strictions on credit and interest
rates to materially control infla¬
tion in any appreciable degree at
the present time. Credit expansion
is a normal and desirable development in a period of business re¬
covery. It is not the cost of money,
but the purposes for which it is
borrowed that calls for control at
the present time.
,
;
As to the elimination of the
With

banks

7.

;

7.';7;7■:: -^

gether.

country $2,000,000,000 and a set¬
back in production
of durable
goods, including automobiles, of
at least three months.

Monetary

■

was
by coincidence rather than
design that the two occurred to¬

the soft coal strike have cost the

,

:7'

requirements may have
a small degree to
the downturn of the market and
the contraction of business, but it
reserve

amount of credit so used

stoppages caused chiefly by

cumulated shortages built up dur¬

Common Stock

on

work

be ineffective to remedy the

127,500 Shares

longest

been predicted

had

we

within reason but all of this will

'

record. The
by many
students in the fall of 1936 and
the second

Small, Civilian Produc¬
Administrator, stated on May
30th that he estimates that major

tion

be asked to grant

The offering is made Only by the prospectus.

-

quirements were raised to tighten
This raise in reserve re¬
quirements coincided with the end
of a 5-year bull market in stocks,

collateral due in one year or

to combat inflation. Congress may

offer to buy the securities herein mentioned.

in
re¬

preferential rediscount rate on

a year.

can

a
on

money.

state of paralysis if it had con¬
a few weeks longer.

tinued

000,000

purchasing

enormous

immediate effect
economic
developments was
1937. At that time, reserve
and

direct

John D.

a

have agreed

against infla¬

succession

In

in
;

inherent in bank deposits
owned by individuals and corpo¬
rations, together with the wide
Cinancial controls to state frankly ownership of government issues
which
and bluntly that nothing of im¬
are
approximately
the

pauses

*

invitation to

strike, which was

against the

This announcement is not to be construed

new issue

'

an

pro¬

third, coal, and fourth, transporta¬
tion,
with
innumerable
minor
strikes spaced in between.

7-7'v7777.7

;7

jin

at the present
,,,

work, i.e., less

power

leading the pub¬
themselves) to believe
that some major accomplishment
can
be effected through further
(and

of

credit

be

in order to preserve

lic

fern

br else

rates

better instead of

hese means and to throw the

of

so

this tre¬
purchasing

had

contributed in

Government

production by about $200,-

portance

loss

and

of

which

apparently

rates

had been correct.
proposed that

The

cost of

from

the

power

With

reservoir

only

money

be unemployed

dict will result in

powers to free ourselves
the straitjacket of the 'patand

owned.

already
mendous

The

uncertain.
instance in

stock prices and a contraction of
business were at hand. Tightening

tion which has not yet been wit¬
nessed is full production working

^present

rates',

if

strikes involving, first the auto¬
motive industry; second, steel;

during the war
(

even

done

amounts*. of

1

to the number to

tax

impossible proposition when
they propose to control inflation nitely slowing down the efficiency
financing period."
;
;;
..
.
'
through stopping further mone- of the war effort? ■'
"But," he added, "the door is tization of the debt and curbing
Let
us
assume
that
banks
still open. We have yet to deter¬ credit expansion during a period owned no bonds at all and that an
mine if and how-we can close it
such
as
the
present? If these amount equal 7to bank holdings
without bringing undue pressure articulate bankers succeed in sell¬ was owned
by individuals as sav¬
on the government security mar¬
ing to the public the idea that ings bonds, in addition to those
an

solution

higher

the rate of

eral Reserve credit

correct

fewer hours of

excess

bankers talking about

the

Expenditures for the war were
so
great
that it is extremely
doubtful:-that any substantially

percentage
of expenses
could have been financed through

look was still

the
opinion generally was that the
not' early part of 1937 represented a
for
top area and that a decline in

of

take-home pay as nearly equal to
the war rates as possible but for

at

Are not

the

by

the out¬

and expand while

money

as

creased

if

'

care

anticipated condition,

wage

successfully

as

securities maturing
within one year which encour¬
aged you (bankers) to use Fed¬

Impossible Proposition

the

could have

pursued

take

any course substantially different
from the one which it did follow.

could have been sold to non-bank

An

itself

in

agree with those who
claim, after the job has been done,
the
Treasury
Department

that

proposed

expected unemployment was

the estimate

eral Reserve System had recently nomic pattern is being threatened
industrial strife,
constantly
moved in that direction by- "tak¬ by
ing in the welcome mat in the mounting wage and material costs
form of the preferential rediscount and the present acute lack of pro¬
*
rate on advances collateralized by duction,
.Government

remedy

Government to

1929-1933,

of

depression

the

In

cheaper money rates were no in¬
centive for business
to borrow

end

•

The

tached,, and call money at 15% or
on the N. Y. Stock Exchange.

20%

v

.7 7.

contribute

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4498

•Volume 163

announced

substantially to

very

the

dollar.'

to

the

promote unrest

:

States.

*

-

,

question that addi¬
tional major strikes would further
boost

no

rates and slow down

wage

production,

thus

inflation,

contributing

to

00 "-t

purchasing

power

to buy

goods, which are in short supply
already, exists in the form of

.

the
respectfully
of

suggest that the Federal Reserve
Banks

be

we

might find it desirable to
two sets of interest rates, one

use

for

transactions

commercial

when rediscounts
reach
a
sizable amount, it might be worth¬
while to experiment along these
and

lines and thereby still permit the
Federal Reserve Banks to operate
within
the
present pattern of
have

to

and

additional control

over

un¬

desirable
expansion
of
credit
Without jeopardizing the Govern¬
ment bond market.

\

if

for

inflation.

It

is

production
to
meet
threat of further inflation. -

and

to

antagonize,

some

be,

of

their

tect and promote the public inter¬
est. All voting citizens are equal¬

ly responsible for the government.
The government in turn is
equally
responsible to all citizens.
The

:

government

operates

;

through the sanction of laws.

It

Nation by this yardstick. If

as

whole. I

a

re¬

am

pussyfooting by either legislative
administrative
officials; thai
are disgusted with a supine

attitude toward industrial terror¬

ism; that they
bottom

great

of

are

their

ashamed to the
souls

that

country should be

chaos,

unable

obligations

to

meet

the

to
own

this

plunged
its

world

strength for
people.

I hope that every one of
you
belongs to this majority. If so, do
you want a prescription for your
■

own

our

Do

do

we

we

conduct?

Do you need one?
ask yourselves, what can

you

do? The

answers are

plain and

shall see that many of the
have recently been more
honored in the breach than in the

talk, and in this country of free
speech no one should underesti¬

observance, v

One

method

of

halting

mone-

We

shall

have

to

admit' that laws have been made
and

allowed

to

stand

the

on

may not operate in any other way.
The laws are enacted by the: leg¬

of them. We shall have to concede

islative

that

are

and

branch- whose
members
chosen by the people in free
elections.
No laws may be made

.

Allan S.

Richardson
years

was

Richardson

for

•

f

the

past
three
Commissioner of Se¬

curities for the State of Colorado.

Mr. Richardson

also Secretary

mate the value of

so, we

rules

statute books which violate

some

they

apply to

all

of

us.

We

can

talking. We can
write, those, of us who have had
any
practice in putting pen to
paper.
We can influence our

neighbors, if

we are sure of our
position.
We can refuse to
join any organization formed for
the Treasury Department to offer
ignored one or more of them or whatever purpose which has a
prior to option date, to non-bank conferring special favors, privi¬ acted counter to them. It will be
political program designed to se¬
holders of the 2%. taxable bonds, leges or
exemptions on any indi¬ clear that powerful individuals cure privileges for its members
and any other issues that might be vidual or any
group, large or small, and organizations have no inten¬ which
are
not
enjoyed by all
desirable, an exchange into non- No
administrative\ officer may tion of observing some of them citizens. We can stand up to the
eligible issues. For instance, the construe an existing law to grant and have been allowed by our abuse of the selfish and the
prej¬
2s of December 1954-52 might be
special concessions to groups or servants, yours and mine, to break udiced,
and
we
may
expect
offered an exchange into a bond individuals.
If
no
law
exists them with impunity. And it should plenty of it.
We can accept be¬
similar to the Victory 21/2s, which which empowers the
clear
that
government be
every
successful ing called either radicals or reac¬
at present would require little or to block the
actions of a particu¬ violation of any of them weakens
tionaries, depending on which set
no adjustment on the exchange., ;
lar group of citizens which threat¬ the whole structure of American of
partisans is moved to honor us
This would tend to dry up the en the
public interest, it is the in¬ society.
with an epithet—fortified by the
supply
of
eligible
bonds
and stant responsibility of the legisla¬ v I am persuaded that Americans
comforting conviction that we are
would more effectively implement tive
an
body to enact such a law. All in
overwhelming
majority neither. Above all we can vote.
one of the Treasury's considera¬
laws apply equally to all citizens, want to reestablish the rules in' And when we vote we should have
<

tization of the debt would be for

with Vasconcellsi Hicks
Security Building.
Mr.

Co.,

or

into

people, sustained by the people, them over and to measure the
controlled by the people—to pro¬ cent tragic
disturbances of

&

S.
as¬

they

the

Interest]

con¬

DENVER, COLO. — Allan
Richardson has again become
sociated

persuaded that the overwhelming
majority of Americans are sick ol

the benefit of its

(Continued from first page)

f

WiSh Vasconcells Co.

see

stituents for the sake of the wel¬

our

more

friends

need

fare of America

opinion that bankers in particular
should not even imply that they
have any effective means whatso¬
ever at their disposal which will
take the place of production and

Government and Public

possible, of course, to com¬
pletely separate the two, but if

rates

action

any

their

market

promise to be effective in
controlling inflation.
Greater
production
of
goods,
along with a stablization of wage
rates, offer the most promising
remedies

capital or labor* or
ism or creed;

any

or

the intelligence to

the courage to stand for the
general interest; who have the
integrity to disappoint some 0-

through higher interest
rates carry more of a threat to
bond

have

unable to unleash its

not be

Government

changed much by

Allan Richardson Is

and

inflation

and

borrowings .secured by
Government collateral. It would

some

Federal Reserve Banks to control

who

moral

for

one

agriculture

a

bank deposits and liquid Govern¬
ment securities and this cannot

"pattern of rates",

plans are the chief defla¬
tionary potential. Attempts by the

ment

Government

There is

subservient to any special in¬

nor

Reserve

terest either of

than

Great

straitjacket

be expected

can

Federal

the

the United

raising interest rates.
Sets of Interest Rates

promote

and

the

by

to increase in view of deteriorat¬

(

to

effective

taken

Banks. The Treasury's debt retire¬

ing relations between Russia and

System in 1913 which makes an
open and shut case for controlling
inflationary
pressures
through

Two

less

try

formation of the Federal Reserve

As

for

have

class friction. Communistic efforts

There is certainly no clear case
which can be referred to since the

v

strikes

their real objectives those things
which will make American indus¬

,'v

.

objectives. The Com¬

munist-backed

purchase of goods at higher
prices by funds released through
the sale of Government securities
as
individuals sought to protect
tehmelves against a further de¬
cline in the purchasing power of
the

officials

in

executive

high legislative
positions
have

was

of the Association of

Security Ad-

ministrators.

v.

Byrne, Cox and Swords
With Thos. G.

own

Campbell

Thomas G, Campbell & Co., 67
Wall St., New York City, mem¬
bers of

the New

change,

Stock

York

Ex¬

that Philip J.
Byrne, Theodore J. Cox and John
announce

J. Swords have become associated

with

the

firm.

Mr.

Byrne

was

previously with Schoellkopf, Hutton & Pomeroy; Mr. Cox with W.
E.

Huttoa

&

Co.

ji

W. L. Renn & Sons Is

v

tions

its

in

debt

which

gram

deposits.

It

retirement pro¬
to reduce bank

is

;

would

the

cost

also

Treasury less in the

of in¬

way

interest than if the pro¬
ceeds of some future non-eligible
creased

issue were to be applied solely to
the redemption of maturing obli¬

gations, consisting chiefly of

.1 These

work

two

in the

direction

of control¬

System and bankers gener¬
ally would be serving their own
serve

interests apd

those of the coun¬
try if ; they would refrain from
stressing strictly monetary con¬
trols and give greater weight to
the importance of production.
for

such

a

course

is

underlined by the obviously tem¬
porary measures taken to end dis¬

with

putes

unions. A

clearly

the

;

new

coal

wave

indicated

of the year, when

which

and

rail

of strikes is

after the first
labor contracts

negotiated early this
expire. They will be set off
by other labor leaders attempting
were

year
to

bring

their
bargaining
power to a parity with that of
John L. Lewis, who obtained for
the first time, Government sanc¬
tion

principle

funds; These funds

vided by a
tion

and

tax

are

on

in

of

are

benefit

to be pro¬

gross

produc¬

addition

increases equal to

or

previously negotiated

in

to

pay

excess

wage

of

settle¬

ments. Labor leaders will think
that they must do for their unions
at least as well as Lewis has done

for his
In

union.

,

addition

to this, there are
inter-union squab¬
bles and jurisdictional strikes as
Lewis attempts to invade the CIO
unions, and as the AFL and CIO

likely to

occur

both attempt to organize Southern
workers.

Also, there will
to time strikes

No

equal before

are

person

due

be

may

prived of life, liberty,
process

de¬

full

force

suaded

and

that

effect.

in

an

I

am

per¬

overwhelming

or property majority they want as representa¬
of law.
No tives in State legislatures, in Con¬

law

may
be enacted abridging
of worship, freedom of
speech, freedom of the press, or
freedom of assembly.

freedom

The

quire

occur from time
inspired to a large

degree by communistic influences,
such
as
the
Maritime
Union's

present threatened strike, in
wages, hours and so forth

which

really have little to do with the




government

citizen

a

not

may

be

to

gress
who

in the

arid

neither

are

courts

persons

spokesmen

for

but one criterion: Is the candidate

represent- firmly

and

fairly the interests of all the

peo¬

likely

to

ple rather than
within the

a

special interest

body politic.

NORFOLK,

VA.—W. L. Renn
formed with of¬

& Sons has beep

fices' in the Bankers Trust Build¬

ing,

to

continue

the

business

Walter L. Renn. Partners

official may

join,

or

is not, and is under no circumstances to be construed as, an
offer
these securities for sale or as a solicitation of an offer to buy any
of such ,1.;,^

retain

mem¬

bership in, or receive any emolu¬
ments from any organization hav¬
ing business with the government
or
seeking legislation in its own
interest. The government may not

;
, .v

:^

securities. The offering is made only py the Prospectus.

,

NEW ISSUES

FRANKLIN SIMON & CO. INC
■

engage in business in competition
with the citizens.
On the other

rf

hand, the government is charged
with

the preservation of the

ditions

of

con¬

free

competition. It is
charged with; the prevention of
any monopoly of goods or services
by any individual or organization.
Only the government may levy
taxes

on

assigned to it by
authority of the govern¬

4v2% cumulative convertible preferred stock

zens.

Price $52 50 per

v

In

law

the

areas

the

custodian

.

protector

the

government

of its

plus accrued dividends from June 1, 1946

of

public order,
the rights and,
safety of all the people. To resist
the

of

in

the

legal authority is

0$

exercise

criminal

a

No organization of citizens
strike against the government
against the public safety.

These

are

some

of

the

$1 Par Value

rules—

Price $23 per

though, of course, not all of them
—by which the United States has
ordered

its

60,000

common stock

act.

may
or

Share

Y

ment is absolute. The government

is

$50 Par Value

j

the property of the citi¬

the

50,000 Shares

-

,

Share

national

life.
They
arbitrarily imposed
Americans by a power outside

have not been
on

their

control.
They have been
by the people's representa¬
tives, acting with the people's as¬
sent.
They can be cancelled or
changed by the people's represen¬

Copies of the Prospectus

may

be obtained from the undersigned.

made

tatives, but in
altered

or

no

sumed to be

binding.

The Recent Tragic Disturbances

It

W. E. HUTTON & CO.

other way. Until

repealed they are pre¬

behooves

all

of

us

to

think

June 11, 1946

are

of

Mr.

Renn, Walter Lake Renn, Jr., and
Hawks Renn.
V

Edward

-

This advertisement

re¬

member

a

of any organization as a condition
of employment.
No government

up

the

of

citizens

without

would

inflation through monetary
means, but in the final analysis,
we
b.elieve that the Federal Re¬

need

law.

What the Government May Do

suggestions

ling

The

all

the

cer¬

tificates and notes.
V

and

Formed in Norfolk

of
,

^

THE COMMERCIAL & FINANCIAL CHRONICLE

3218

until

adjustments

they

'

During the past week the mar¬
continued

ket

with

By WILLIAM McKAY

easier

Canadian

*

more
were

controls were

essential during the

and

war

are

even

important today. While inflationary influences in this country
held firmly in check the task of maintaining an orderly econo¬

north of the border was correspondingly lightened.

Now, how¬
relaxation of inflation curbs here the pressure on the
Canadian. system of controls constitutes an increasing menace to
my

ever,

with

a

the economic

balance of the Do-^,

,//;

;

..

The fact that Canada stands out

minion.

today in

an

unsettled world

last haven of
to

the

as

this

If

pressure.

Canada took steps at this time to
remove
the
restrictions
which

Canadian Securities

prevent
and

the

capital

hard

free

would

of

flow

time- stability

war

rapidly disintegrate.

'

-

Iv; With the breakdown of the
tective

barriers

the

;

v

.

pro¬

kets

and

in

the

first

heavy volume of

stocks

bonds

would flow in.
sure

? MW1KETS inountaiiied in
all classes of Canadian

<

■( external and internal
bonds.

orders

1 Stock

executed

(for dealers, banks and
institutions) on the Mon¬
treal and Toronto Stock

.

f

at

or

net

be

ill-prepared f to jf deal

Thus the Canadian

|

Dominion Securities
©RPORAmOZl
40 Exchange Place

New York S.N. Y.

than

strictions.

NY 1-702-3

the

likely to jeop¬

relaxation

a

The

controls

elsewhere, and
are

is

of

disastrous

re¬

results

removal | of

premature

wartime

r

too

are

once

evident

the barriers

breached the inflationary tide

beyond

tightly

.The

control.

held Canadian economy would be
even

vulnerable in view

more

its, relative

size

overwhelmed

CANADIAN BONDS

nibble

the

at

Montreal

re¬

funding deal, the success of which
Iwill be dependent on the absence

pf ' ^ny; : markets'decline 'in the
meantime. It would appear also
that any

this

we

of

course

can

could

and

the

by

.

of

be

pressure

actment of these proposed
of legislation.
Does Not Blame

have had the Smith-

of

tne

emergency

recommended

powers

forms;

President

by

the

schools of thought -on that subject,
one that he designedly promoted

President of these United States.

the legislation under the emer¬
analysis gency plea, and the other that he
of these proposals?
I
I think it is was ill-advised and misguided.
hardly,, necessary for me to do so believe in the latter theory, and /
as I understand analyses have al¬ I do hope that the President may
soon
realize that in those who :
ready been presented to you. 1
have kdvised him on labor affairs
Shall I venture into

an

-

The Case Bill

only

unfavorable

and every one of Us to do all with- *
in our power to prevent the en-*

I am not blaming the: President I
Connally Act and now we have
the Case Bill pending before the so- much
^personally
for these
President for signature, and the things.
I think there are two"

further postponement of

important operation

.construed,

be

of labor has been growing

power

by leaps and bounds and that this
power must ' be curbed in some
way or.other.
1
*
From our Federal point of view,

■

Now insofar

as

not

the Case Bill is

only iri this instance but in

like instances in the calling of the

as

an

'

■

3% Mead

by the President, al¬
though both are most hostile to

Corp; Bonds

Offered by Drexel & 8a.
syndicate headed by Drexel
Co.V and including Harriman,
Ripley & Co., Inc., Glore* Forgan
& Co. and G. H. Walker & Co., on
A

,

&

offered

12

June

3%

$12,000,000
bonds

a

first

June 1,

due

new

issue * of

and in many other regards, he has *
not the advice of those conversant
in

law,

will

become

feature of
ment.

our

,

The group also is underwriting

offering of 70,000: shares of
4%% cumulative preferred stock,

an

value $100 per share, which is

being made initially by the com¬
pany in exchange for outstanding

a

permanent

National Govern¬

In that it differs from the

mortgage emergency

Corp. at 103% and accrued
interest from June 1, 1946.

powers

recommended
in that that

would only grant temporary pow¬
er, to terminate six months after
hostilities have ceased.
In this Case Bill, all the rights
that rlabor has gained through all
bf these years of struggle would
be almost completely wiped out.
..

The Norris-LaGuardia Bill would

cumulative

$6

for share basis plus a cash
ment.

be

The

adjus.exchange offers will

subject.to proration.

{

/ '

■

The group also is underwriting
an nffering which- is being made
f

initially by the company to hold¬
ers of its. common shares of record
11

June

share,

to

subscribe, at $53 per
101,056 4% cumulative

to

convertible

second

preferred

the

executive orders

trolling labor

as

well

labor relations

issued
as

con-

*

industry,;

and industrial

*

opposition not only of organized affairs.;
labor but of every freedom-loving k Of course I quite agree with ■
President pubinsky" in stating that
citizen, man, woman and child.
:
The Case Bill, if enacted into the great test as to the President'sv

1966/ of The by the, President

Mead

par

labor-management conference, in.

labor and deserve the unanimous

"

concerned, I
consider that of
greater importance tnan the pro¬
posed emergency legislation rec¬
ommended

factor.

The
preferred stock, be weakened • considerably.
exceedingly critical phase. On the series A, and $5.50 cumulative injunctive processes would again
contrary the stage would appear to preferred stock, series B, aggre¬ be revived, and what is more,
be set for a further
tightening gating 86,390 shares, on a share Sections 6 and 20 of the Clayton
rather

.

not

are

ardize the national welfare at this

pf
Bell System Teletype

authorities

financial management and econom¬
ic controls

future develop¬
ments the market will be greatly
influenced by the result of, the
first

(Continued from page 3202)

consideration

With regard to

I

today can regard with par¬
donable pride the success of their

Toronto and Montreal

,

un¬

who

Direct Private Wires to Buffalo,

:

an

with the inevitable reaction.

New York Prices.

ap¬

continued easy at 91/£%.

dollar

sought greatly augmented foreign
debt,
the
Canadian v economy
would

Exchanges,

Canadian

with

which

refinancing

capital

foreign

burdened

Little

a

would, in the absence of exchange
restrictions, cause a violent ap¬
preciation that would temporarily
drive the rate far above parity.
Then denuded not only of ex¬
portable surpluses but also
of
domestic
requirements,
and
in
addition

negligible.

was-

heard1 regarding the proposed

Montreal

This twofold pres¬

"v the

on

stages

little activi¬

was a

parently will be still further post¬
poned. In spite of some demand
for internal Dominions free funds

relatively

cheap Canadian agricultural prod¬
uce
and
manufactured
goods
would pour out to foreign mar¬

There

turnover
was

Statism

doldrums,

ty in high grade provincials and
internal bonds but elsewhere the

goods

her borders the

across

earned

the

in

prices
generally a shade
especially in the low grade

section.

stability tends only

accentuate

Anti-Labor Legislation Leads

influ¬

:7V

ences.

Canadian Securities

be

can

made regardless of outside

Thursday, June 13, 1946

Act would be destroyed and the

dangers that

ycu

have felt

as

hat¬

ter? in the Danbury hatters

case

again face not only

you,

would

but all of organized labor,

i Therefore, I consider it the more
dangerous of the two legislative

proposals/> Of course the emer¬
gency power desired by the Presi¬
dent, inspired by a great emer¬

attitude toward labor will be his
manifestation
how

on

the

Case

pending before him.

he veto

borne

Bill

Should-

it, he will largely over?/

some

thinking

of the beliefs and the

•

hostility to /
hand, should
he sign that bill, then there can be no question as to his antipathy
toward organized/labor and his f
haying joined the5 forces -seeking/
to weaken and ultimately destroy:
the power of labor.
? ;
labor.

as

to< his

On the other

Opposes Totalitarianism in
Organized Labor,

-

of citi¬
zens within nur jand/ahd; within
purv organizations/expounding a
philosophy of totalitarianism in
affairs of government and like-*
wise in the affairs of organized
labor who arie using this legisla/ /
tion and these proposals in pro- >
moting their theories and beliefs of total power in the hands of
government.
/
i
Unfortunately, these proposed
legislative enactments and proNow,

we

have

a group

shares, $50 par value,; ip the ratio gency/ no doubt, ill-conceived,
of one share of second -preferred badiy designed, impracticable of
posed emergency
powers
have"
for each seven'shares of common enforcement,
even
if $ enacted
opened the floodgates to those
held.
The. company is issuing to would not accomplish the purpose
who would preach communism in
holders
of its
common
shares desired.
pur ranks, and let those who have/
transferable t warrants evidencing
To start with, his powers went
urged the Case Bill and emer¬
such
subscription rights.
Each too far, not because of labor, but
gency powers realize that they ■
share of second preferred is con¬ because of industry, because the
have given the Communists an;
vertible ' into two shares of com¬ original proposal was not only to
issue in our national aind economic
mon stock prior to July 1, 1956.
draft labor and to compel it to
life such as they had never be-;
The
exchange
privilege
and give service, but it likewise was fore had presented to them.
designed to confiscate profits, and
rights to subscribe expire June 26
I After all, we have been told, we'
there the introducers made the
The net proceeds from the sale
must; be fair to Russia, we must.
fatal mistake, because when you
be tolerant, we must permit the ;
of the bonds and any 4%% pre¬ touch profits, you touch hallowed
next period to go on, we may ;
ferred stock and 4% second pre¬ ground, and thus the confiscation
learn much of this total power
of profits was immediately remov¬
ferred stock not issued in ex¬
possessed by government
ed, and consequently the features
change or subscribed for by the of the
But now we have a new issue.
drafting of labor.
Now it may well be said by them
stockholders are to be used to re¬
But there is still retained in
that we have advanced from the tire $8,000,000 3 Vs% bonds and all that
bill the injunctive
power
Little Steel formula to the Little
of the presently outstanding pre¬ which is a compelling and a com¬
Stalin formula, from the freezing
pulsory power on labor. In addi¬
ferred stock.
Of the balance, $3,-;
tion to its negative features, pro¬ pf wages to the freezing of labor.
600,000 will be used to reimburse hibiting this, prohibiting that un¬ | But on the other hand we know;
the company for expenditures in der
judicial decree, subject to these advocates of a change of
financing a new company called punishment by contempt proceed¬ philosophy of government are not
sincere, for if they were sincere,
Macon Kraft Co., and the re¬ ings as well as by the criminal
code, it likewise contains affirma¬ they would hail these develop-;
mainder for improvements to its
tive action wherein the individ¬ hients with joy and say, "It is but
the opening to the greater pdwer
present plants.
ual, even should he neglect the
observance of law required, could of government to control and to
be deprived of his status as an dominate organized labor/ for the
,

from without.

Therefore until the

external situation becomes clearer

GOVERNMENT

and

more

settled the Dominion is

likely to be

PROVINCIAL

determined

more

in

its endeavor to insulate the Cana¬

dian economy from external pres¬

MUNICIPAL

sures,

and

to

eventual

postpone

CORPORATION

-

.

Abitibi Power
CANADIAN STOCKS

&

Paper

1st

5s, 1965

Summary

A.E.AMES&CO.

on

~U.'*/: VvV

s

request
!*

•

,

' " J

1 -v

INCORPORATED

r

TWO WALL STREET

•

Ernst e Co.
"

NEW YORK 5,

N. Y.

MEMBERS
New

York

Stock

Exchange

nr.d

other

leading Security and Commodity Exchs,
'

RECTOR 2-7231

NY-1-1045

120
231

Broadway, New York 5, N. Y.
Se.

LaSalle St., Chicago 4, ill.

Non-Callable

&
64 WaU

COMPANY
Street, New York 5

WHitehall

3-1874

Company

4% Perpetual Debenture Slock
Interest payable semi-annually in

United

Sjtates Funds

3.48%

CANADIAN
SECURITIES

Wood, Gundy & Co.
.

Provincial

Municipal

Corporate




14 Wall

Incorporated

Street, New York 5

Direct Private Wires

to

Toronto & Montreal

emergency powers are

his fellow workmen in their col¬

established

lective activities and their collec¬

Canadian Pacific Railway

Price to yield

Government

Stalin pow-<;
modified; form and once:

employee under collective agree¬
ments and thus be iso]ated from

TAYLOR, DEALE i|

velop

tive

Government of industry, of com¬

agreements.

prs

in

will

complete

ultimately

control

by

de¬

the

merce, of labor, and deprive all
you
will see there has
of us of the freedoms we have;
proposed for the'first time in
heretofore enjoyed and make of J
history not
only, negative re¬
oun trade
union organizations a
straints upon labor, but affirma¬
mere tool, a mere agency of the4
tive demands compelling the indi¬
vidual. as well as groups, to obey power of government.
Therefore, let-not only labor,,
the will of the Government as
expressed either by the Executive free labor here, but likewise those
outside of the ranks of labor who
or as expressed by the judiciary.

Thus

been

These

fronting

are

us,

grave dangers conand it behooves each

love freedom,

who enjoy free en-

terprise, beware of the activities;

THE COMMERCIAL & FINANCIAL CHRONICLE

yolume 163 V Number "4498

are promoting and of the mercial/value whatever/ It de¬
developments -and tendencies Jhey pends -upon others to give to it

they
;

value.

are

manufacturer.

exclusive right un¬

these

but the musician
setting at work for their own
;/'
/•' v/ ///';
;
And so we find the music pub¬ who really adds the value today
undoing,
" /•/
■
• '/ //;
r
Therein lies the greater issue. lishers. He may assign his exclu¬ to these compositions, to these ■
Not only are we faced with that sive right in part or in whole to records, by his musical talents,
danger here, hut let us understand them on a royalty basis or other¬ these men are not given a stand¬
developments in world affairs to wise, and there again the value ing of equality before the law in
,know what is going on, especially is enhanced to some extent/but the matter of copyright, All these
in promoting doctrines that are even there the value is limited, others may secure royalties for
djkely .to deprive the workers of particularly in this age of mass their- own selfish advancement,;
.the, power we have exercised and entertainment and mass enjoy¬ but the. musicians may not for
which has given us the great
op¬ ment, for without the musician, their services secure like consid¬
that music will be of little value eration,
portunities we have today.
and yet without them,;
;/ May I say something in con¬ either to the - composer, to the these exclusive rights would not
nection with all this legislation to music publisher, or to the fecord be. of the value they have today.
>
limit, to restrict, and to outlaw
.the right to strike, the right to
.picket, the right to boycott Wher¬
ever the right to strike is denied,
there wou will find the despotic,
..

.

.

,

the

tyrannical

government and
not a
democracy. It is only where
the workers are free collectively

Case Bill Veto Emphasizes Need
Foi Immediate] Labi>r Legislation
*

'

•

t0 give up their employment,
Where freedom prevails and where

(Continued from page 3202)

No wonder, then, that
make
mistakes;

characters.

And yet all three

may enjoy an
der the law,

;

3210
ceivership for

leaders

(

,,

"break

political

not made more mistakes,
'
"The "*■
history of Anglo-Saxon

Congressional bloc to prevent leg¬
islation,
Let Congress not daro'

The

labor

lobby

is
to

pressure

trying by
organize

a

American liberty rests abdicate its function! The public
the struggle to resist wrong is aroused and resentful. Let tho
'--to resist it at any cost when first people protest! Their voice, shall
and

of

upon

offered

rather

than

to

pay

and

be

must

heard

by
their
Or, has democ¬
racy failed after a brief experiment?
Macaulay
predicted
it

the

penalty of ignominious surrender." elected officials.

"If lawless methods are pursued
by trades unions, whether it be by
violence, by intimidation, or by
the more peaceful infringement of
legal rights, that lawlessness must
■;./

would.

cost."'-

The Athenian and Roman,

Republics did,

be nut down at once and at any

D. A Keeler Now With

///

"We

gain nothing by exchang¬
ing the tyranny of capital for the
tyranny of labor. Arbitrary de¬
D. Acheson Keeler has joined
mands must be met, by deter¬ Distributors
Group, Incorporated,
mined refusals, also at any cost." 63 Wall
Street, New York City, as!
(Statement before Senate Com¬ wholesale representative.

Distributors Group

mittee

even"

;

grievous errors. The ex¬
traordinary thing is that they have

Interstate

Commerce,
point for business.; many wall mottoes, showing the,
But unions insist on keeping wage; prudence and the judgment of 1911 and address to Boston Typo/actual democracy reigns. ;
\ • rates,
/ :'
/
rigid as selling prices de-; Swiss labor leaders. One motto,; thetae, 1904.)
In, two dissenting opinions in
/; .Supports Miners' Strike
* cline and profits turn to deficits.; prepared by labor, read, "We have,
/ We
have heard much about T h er efo r e, depressions come no iron, we have no coal, we have 1921, Justice Brandeis urged laws
strikes in the very recent past sooner arid the decline is deeper. no copper, we have no gold. Our to protect the community against
assets are the daring and ingenu¬ labor abuses, He said: "Practically
iUpd •{ even of the /present. * The Unemployment becomes w i d e/miners have /been subjected to spread./ Then, radicals; say "pri¬ ity of our business leaders and, every change in the law govern¬
vate
enterprise cannot
work." the loyalty arid discipline of our ing the relations of employer and
great criticism because they have;
ceased to toil unless rewards were Communism is advocated. But in workers." But the United States employee must abridge, in some
.given to them that they felt them¬ Soviet Russia, Where the aim was does have iron and coal, copper respect, the liberty or property of
to share the wealth/the result was and gold. But does it have work¬ one of the parties, if liberty and
selves justified to, / ^ / <
to share the poverty.
by the
Lord Bal¬ ers who are loyal to the organiza¬ property be measured
Unfortunately, altogether, too
note to
Chicherin tion and responsible to the com¬ standard of the law theretofore
many in the ranks of organized four in his
stated that/"B61shevisih/vas/able munity? Therefore, Swiss Watches prevailing."
/labor joined in that criticism./1,
made by workers enjoying a high
"All rights are derived from the
/for one, hail the strike of the to make rich men poor, but unable
miners as evidence of the free¬ to make poor men rich." If the standard of living,' can be sold in purposes of the society in which
dom we enjoy as American citi¬ government intervenes the unions America at a profit despite a high -they exist. Above all rights rises
compel the government to serve duty. But our labor unions now duty to the community. The^con¬
zens in a democracy.
/ /
' /
ts bidding.
an' embargo . on
Swiss ditions developed in industry may
I hail it as a most conclusive
The railroad unions urge
watches. They are fiddling with be such that those
engaged in it
evidence that we here in America ml 941 compelled President Roose¬
the symptoms. They should deal cain not continue their struggle
/have a true democracy, where the velt to reconvene the Fact Find¬
> /
"v.
ing Board to raise the wage rate with the causes.
Without danger to the community;
wage earners may strike not only
to the unions' demand.
But in
/ The foreign workmen employed But it "is not for judges to deter¬
©gainst their private employers,
1946 they refuse to appear before at the New York World's Fair mine whether such conditions ex-'
/put as well against the public em¬
t. Such a Fact Finding Board is were shocked at American labor 1st.;;//! >
This is the function" of
ployers. For what difference does
a political device
to compel the practices. A Dutch workman, dUr/ the legislature which, while lim¬
j It make? If the employer be harsh
surrender of the employer to the
ng the building of the Nether-; iting individual and group fights
/-as a government, why should we
unions. / Sovereignty
no / longer laf.ds Pavilion reported his expe¬ of aggression and defense, may
.be then compelled to give service
/to it any more than to a private rests in the State, but in an or/ riences in the • "Nieuwe Rotter/ substitute processes of justice for
vanized minority of the -popular iamsche Courant," May 21, 1939; the more primitive method of trial
/ employer who is equally harsh?
tion.
•
as follows: "I am ashamed at what
by combat" (Dissenting opinion
«Qr when a private employer is
I saw. I am a union member in in Triiax v. Corrigan (1921) and
: harsh and refuses to enter into
;
Th^ late Walter B. (Cannon, dis/ agreements, and- the Government
tingurshed physiologist and- pro¬ Holland;' but we have a sense of in Duplex Printing Co. v. peering
'

politically bank^

a

rupt economy,

make

on

.

Mr.

.

-

who

in

been

has

for

many

yearsk

was

associated

with the American Red Cross for
the past 3 V% years as Field Super- <
visor of Ship Service for the New
York

and

Ports

Boston

barkation.

of

Em¬

•

Distributors,

.

-

Keeler,

the investment securities business

Group,

Incorpo¬

rated, whom lie will represent, is
the sponsor of the share of Group
Securities, Inc., which are dis¬
tributed by more than 500 invest¬
ment dealers-and brokers.
With
total assets of

approximately $115,-

000,000 representing the combined
investments of more than 35,000

Group

shareholders,
Inc.

is

Securities,

third

the

largest mutual
investment fund in the country.
-

;

^

' 4-

-rnmmmm*—-

'

'

Taylqrcraft Aviation
Common Slock Offered

.

.

.

presumes to

'

cessor at Harvard, wrote a book,
'The Wisdom of the Body," a

operate in his stead,

Why then should we be com-!
/ pelled to give up our demands for
/ proper,

of the War Labor Board

we

on

/

have the

ivill end in complete failure."

politically paralyzed at

I

Legislatiou| enacted abroad Is
here. A great friend of

necessary

as

nations,

ach, the liver, the lungs do not

said: "Abuses of the trade unions

peace

have been innumerable.

abuse

each

crowd

other

out.

Their

jrowth is regulated or inhibited.
Uninhibited growth/occurs only

disease,

n

as

inhibition

in

cancer.

There is

the growth and
unions. They are
pew a social cancer unless regu-

no

the part of

of

power

ated

and

on

the

controlled.

is.now sick.

Democracy

uals

of

slight " education

Individ¬

and

of

.

to positions Which can

be filled adequately only by men

racy

only the workers, because they
striving to change a status
condition into one of im¬
provement and betterment.

prerogative of the state in order
protect everybody. But the un¬
ions resort to violencej while .the
government .supinely watches. {/

What is the inflation sequence?
A rise in industrial wages, then a

find this criticism
of the musicians in their endeavor
lo

secure

to

care

we

unemployment fund

an

for

those

that

may

lose

their opportnuities of

employment
of mechanical devices
which come into existence,*

by

reason

/ Here again
situation.
the

ones

we

Take

find

a

strange

our

composers,
that conceive and write

the music.

They

sive

by

right

their creation.

secure an

exclu¬

government

over

in

wage

machinery prices, then

increases—a vicious

existing social order must in¬
evitably be ultimately destroyed.

But

no

new

better order

posed.
World's

is of

1939,

the

It has




no

com¬

is pro¬

17 for the purpose of voting upon
this proposal.

,

Sperry & Co. Is Formed
SUNBURY, PA.—Pierrepont E.
Sperry has formed Sperry & Co.,

democracy by the organ¬

and

freedom.

of

both democ¬

Mr. Sperry was formerly a part¬

Fascism and

ner

rigid f ef

a

in J. H, Drass & Co. for many

years.

/

,

Corporation
' / '

24,000 Units
Each Unit consisting

of

share cf

one

51/2% Cumulative Convertible First Preferred Stock
(Par value $10 per share)

and

one

.

share of

,

'

.

Common Stock
"(Par value 10;cents per. share)

OflFered

at

$11.50

a

/'J\/.

'!/ /';.

Unit

Ph» dividends accrued oh the First Preferred Stock from June 1,1946 to the date of payment

us

look

abroad.

At

Fair at Zurich

section

on

labor

the
in

had

Childs, Jeffries 8C Thorndike
Incorporated

de¬

special meeting of tha

fafr'e end is confusion and chaos.
The

Let

value.

a

*

Swiss

no

•

spiral.

employees,
white-collar classes,
teachers, ministers, nurses,, dis¬
abled veterans, widows, depend¬
ents, and insurance policy-hold¬
ers.
Rising wages thus start a se¬
res of disequilibria.
The inevi-

merely to write that music itself

we

held, • and

Preferred^^ Utilities |Manufacturin|

Who foots the bill? Persons With
fixed incomes—Federal and State

know that

But

a

be

stockholders will he held on June

organized

possessing great minds and great Cbmmunism constitute

rise in farm prices to parity-then
increased food costs, then hew

Supports Musicians' Demands

stock

'

rise

tha

dividend of threa

a

common

to

In the body all organs coordi¬
nate to function for the common

that

June 10 had recom¬

a

quo

And then

on

Resort to violence is

are

■

j

announced

also

cor¬

with offices at 235 Market Street,

abuse

ized unions may end

.

other

freedom

The

Slight training, are elevated many
.

and

economic

by

times

of contract

no,

power

is

directors

requires limitation on the
of

to be used for additional

clared on each common share now

international

internal

are

working capital
porate purposes.

mended that

abuses of sovereignty by
so

groups,

workers?

Oh,

on

under

/ we then criticize but one party to
;
a contract and not the other?
/

find fault with the operators?

Just

required.

ceeds

moment shares of

a

is

unrestrained power

He

Governmentj is

powerful action

tation

of labor.

Our

when prompt and

find 1911, warned of the evils of

as did
good.
But, in society, a small
Why should group of workers can paralyze the
economic system. Society then has
a fainting spell.
Society is now ill.
•;! Have you seen our newspapers It must cure itself. Legislation is
or our commentators on the radio
required. /.• •:•/:///••••*-•<•, : ////.:

power

the mine

:

an eco¬

labor, Louis D. Brandeis, in 1904

been

r

in

nomic crisis.

t

the employer up to 6% of payroll
for welfare provisions.
\ / /
And yet the hue and cry has

:

cooperation,

Control of growth and. power is
characteristic of health. The stom¬

have

against / the
miners, the
workers, but not a word of con¬
demnation against the mine operr
ators.
Were they not too equally
liable then in bringing about the
Stoppage .of industry with the
mine workers for did they not too

more

/

/time and again approved such ar«
rangements,
and
the
Treasury
/ Department has likewise approved
/ such a
"rangements by the approv¬

al of a deduction

and

mon

the union movement in America

sense

?tock, par value $1, at a
price of $13 per share.
The pro¬

common

It

The country is now

political peace presupposes limi¬

v

>

workmen do not show more com¬

(1921).

equilibrium in
functions. The
last chapter attempts to apply the
principle of equilibrium to our
economic society; The book is re¬
quired reading for every public
official and,labor leader./ >/ /

as to health and safety and. sani¬
tation, Surely such a demand is
pot outrageous,
Surely such a

/ demand is fully justified. As for
these welfare funds, as a member

American

the

T»anV physiological

What did the miners strike for?
/For a welfare fund, for protection

'

If

>tudy of internal

just, and fair treatment?

,

.

responsibility.

Tros'.er, Currie & Summers of
Y., on June 11 of¬
a new. issue of 20,000 shares
of
Taylorcraft
Aviation
Corp.

New York, N.
fered-

First

'

Coburn 8C Middlebrook

Colony Corporation!

COMMERCIAL & FINANCIAL CHRONICLE

THE

a net operating deficit of
$434,048 compared with net oper¬
ating income of more than $7,000,000 realized in the like 1945
interim. Subsequent traffic trends
have been considerably more un¬

ported

favorable

last week to withstand another

The rail market was called upon

of Chicago & North Western an¬
taken on the preferred dividend at
The omission was attributed by the manage¬
sharp increase in wages and other costs in recent

shock when the directors

severe

nounced that no action had been
their regular meeting.
ment to the very

^stated that

the

to

until

would

dividend

relief

was

be

Interstate

the

taken

forthcoming
Commerce

Commission in the way of

Preferred :'"

Common &

action with respect

no

some

from

Arden Farms 'M

It was

in freight rates.

without any compensating increase

years

higher

freight rates. Hearings on the pro¬
posal of the railroads to increase
freight rates were completed some
time ago and a decision is ex¬

Chicago Railways
Cons. "A" 5s,

pected any day. The consensus is
that fairly substantial increases
will be granted.
The best guess
at this time is for an interim in¬

1927

averaging
perhaps
18%
extended hearings later on

crease

with

Marion Power Shoyel

tne

in¬

permanent

of

question

months

:

than
it

so

evitable that

those

appears almost in¬
comparisons for the

full first half will be

even

than

the experience for
months through April.

Details
tions

as

earlier

of

to

the April opera¬

not

yet available but
for the first quarter make

are

those

discouraging reading.

very

worse

the four

revenues

Gross

held up quite well, be¬

ing only 3.6% below the opening
1945
quarter.
In the face of a
drop of $1,416,000 in revenues,
however, transportation costs
climbed

Proponents of
legislation " have
pointed to large war earnings of
the
bankrupt carriers as proof
capital
this

that the
valid

old

have

stockholders

a

equity in the properties and

should
in

Gay & Co. to Be
j§|
Formed; NYSE Firm

of

reorganization

original

North

has

Western

the

as

have been eliminated

not

been

Wall

plans.

old

most horrible

bondholders

eliminated.

This

'complaint can
hardly hold good if the old bond
holders

times

not

are

dividends

receive

to

even

regularly

normal

in

the preferred stocks they

on

received

for

claims.

a

1

portion
'

of

New

Street,

York City, to

in the investment business.
Partners of ihe new firm will be
engage

held up

example of
benefitting be¬
yond their equitable rights at the
expense of stockholders who were

as

Gay & Company will be formed
of June 20 with offices at 63

their

William

Campbell
E.

William

member

Gay,

of the New York Stock

Exchange;

will

who

Warren,

acquire the Stock Exchange mem¬
bership of the late Charles R. Gay,
general partners, and J. C. B. Gay,
partner.
Mr. Gay has

limited
been

doing business

partner in McLean, Bishop

a

was

indi¬

an

as

Mr. Warren

vidual floor broker.

& Warren.

,

$3,579,000 above the level

of the preceding year.

Sales of U. S.

Of less im¬

portance, because they could pre¬
sumably be more readily curtailed
if

structure.

type

the road's mainte¬

necessary,

Savings Bonds

Vernon L Clark, Director of Treasury's Savings Bond Division, reports sales in first five months of year totaled $3.47 billions.

Re-

*

demotions show declining tendency despite strikes. New drive's

charges, excluding amorti¬
zation and deferred maintenance,
nance

•

aim is to offset inflationary trend. /.
$1,680,000 to $14,519,000.
Sales of U. S. Savings Bonds during the firsi rive months of 1946
All in all, eliminating amortiza¬
tion
and deferred
maintenance totaled $3,470,440,000, the Treasury reported June 5, on the eve of a
nation-wide
publicity
campaign ~
there was a deficit of $267,104 be¬
for savings bonds which opened May redemptions were 14% less
fore charges in the 1946 quarter in
than April's and 14,7% less than
on June 6 and runs through the
contrast to income of $7,993,853
in March, the peak month. May
available for charges before Fed¬ Fourth of July.
This sale is at an annual rate of sales of E bonds were $344,803,eral income taxes in the 1945 pe¬
000; redemptions were $469,160,riod. This comparison, more nearly $8.3 billions, Vernon L. Clark, na¬
000 and in the five months $2^than reported net results, gives a tional director of the U. S. Sav¬
true picture of the sharp deteri¬ ings Bonds Division, pointed out. 598,655,000.
This rate of sales exceeds predic¬
Sales of all savings bonds, Se¬
oration in North Western's oper¬
were

up

.

creases;

Preferred

most

significant

action

(or lack of

the

Perhaps
feature

of

the

action)

of the North Western di¬

rectors is that it marked the third
of the newly

reorganized roads to

preferred dividends in the
past month or so. The first was
the St. Paul which made similar

defer

with respect to

excuses

the divi¬

dend due out of 1945 earnings and

the second

Ernst&Co.
--

,

•'t

•'

v.

"*'V"/rU

'•

York

Stock

the Chicago Great

There is greater

cation in the

'

justifi¬

of North West¬

case

ern,

MEMBERS
New

Western.

was

Exchange

other

and

however, as its dividends are

on a

current basis rather than rep¬

leading Security and Commodity Exchs.

resenting distributions out of the

New York 5, N.Y.

preceding year's earnings as is the
case with most of the reorganized

St., Chicago 4, 111.

roads.

120 Broadway,
'

231 So. LaSalle

■

its

Certainly

operations

could be

TRADING MARKETS—

Magazine Repeating Razor Co.
Universal Match Corp.

thing,

Dixie Home Stores

pretty

,

Tennessee Gas & Trans,

less

on

on

the basis of

far in 1946 there
that North

assurance
earn

much, if

any¬

freight

rates

are

soon.

\

current

year

North

One im¬

s

the question

of the feasibility of

the so-called Wheeler Bill

winch

Western

re-

rupt back to the

ol^, stockholders

for voluntary readj ustment

aim

to

bring

forcibly

It is

to

our

public

ther disrupt

the national economy,

Americans

should

have

at

least

more income in 1946
than they can spend at legitimate
prices on consumer goods and ser¬
vices available this year. For the

good of us all, as much as possible
of this surplus should be turned
into
non-inflationary
channels,

72 WALL STREET

YORK 5

$10,000,000,000 from its peak in
February^ almost ^w^blly^'throii^;1

NY 1-1499

demptions of E, F and G bonds of
$523,597,000. Including maturities
and redemptions of savings bonds
no longer sold since May 1, 1941,
the total paid out in May was
$552,232,000, leaving a net gain of

SECURITIES

61

Kenneth

New

might have been expected to cut
sales radically and. increase re¬

York Stock Exchange

New York 6 "

Broadway

Bell

Telephone—DIgby 4-4933

Teletype—NY 1-310

Selected Situations at all Times

b

t

♦

- *

it

E.

was

reported
would

Johnson

that
en¬

in the securities business in
Indianapolis.
Mr. Johnson's cor¬

rect name is Kenneth S. Johnson.
new

demptions of E bonds,v the down¬
ward trend of redemptions that

son

&

Indianapolis.

firm, Kenneth S. John¬
will be located

Company,

Building,

in the Merchants Bank

ARBITRAGE LETTERS

VXTZ * A T £ 0

C'JARANTEED RAILROAD STOCKS-BONDS

25

23rd

His

Denver & Rio Grande Western Railroad Co.
rIMCO

,,,

gage

In

began in April continued in May,

Members

savings bond

the "Financial Chronicle" of

May

ing $2,111,725,000. Despite strikes
and disruptions of industry which

pflugfelder, bampton & rust

the

Kenneth S. Johnson

May, the total at month's end be¬

Specialists in

in

$42,111,000

account for the month.

Sales of E bonds in 1946 passed
the two billion dollar mark in

RAILROAD

short term securi¬

retirement of

especially U, S. Savings Bonds,
and particularly E. bonds."

Teletype

HA 2-6622

since when the

of the $20 billion

Van Tuyl & Abbe

Telephone

four months ago,

need for it has increased.

is designed to do away

Carpet Co.

NEW

tions for

1946 made last Decem¬ ries E, F and G exceeded redemp¬
ber, he said, but in view of the tions of these series by $629,182,present upward trend of prices 000 in the five months. Deducting
while
consumer
goods
remain payments of matured Series A and
about, if not actually, the highest
B bonds and redemptions of B, C
scarce, it is not enough;
wage cost in relation to gross rev¬
"This is not to be another bond and D bonds not yet matured, the;
enues to be found among the. ma¬
drive," Mr. Clark said, "but a peak net gain in the savings bond ac¬
jor companies in the industry.
in
publicity in our continuing count was $468,549,000. This, how¬
The recent dividend policies of
the
three
reorganized
carriers peacetime promotion of sayings ever, did not increase the net pub¬
bond sales. Preparations for the lic^ debt, which by June 15 will;
(North Western, St. Paul and
been
reduced more than
Great Western) naturally bring up campaign in all media were begun have
ations in the current year;

portant factor is probably, that
traditionally North Western has

with most attention the wisdom of putting ties held by the banking system.
increased judicial reorganizations, turning away every possible dollar: in
May sales of all savings bonds
the properties of roads now bank¬ Savings Bonds. Unless strikes fur¬ totalled $594,343,000 against re¬

its preferred stock un¬

For the first four months of the

Berkshire Fine Spinning!
Firth

no

will

Western

so

•

oad Street

New York 4,

jephone BOwllng Green
Teletype

NY

St. Louis-San Francisco

N. Y,

Railway Company

Denver & Rio Grande Western R.R. Co.

St. Louis & San Francisco

When issued securities

9-6400

1-1063

Bought— Sold-—Quoted
When issued

Railway Co.

(Available to Dealers on Request)

profits discounted

Vilas & Hickey
Members New

SUTRO BROS. & CO.
Members New York Stock Exchange

Textiles, Inc.

"

New York 5, N.Y.

Telephone: HAnover 2-7900

YORK 5, N. Y.
Telephone REctor 2-7340 ; "

120 BROADWAY, NEW
V

York Stock Exchange

49 Wall Street
V

Teletype:

NY 1-911

3ought—Sold—Quoted

Circular

upon

request

ETCHELL MINE,

ttt

Bo*fon

Tele. NY 1-724

Philadelphia

Hartford




ONE WALL STREET

1. h. rothchild &
of Securities Dealers, Inc.

TEL.

co.

Member of National Association

;■

52 wall

street

HAnover 2-9072

n. jr.

'

v..

Specializing in Railroad Securities

Adams & Peck
BOwllng Green 9-8120

Members New York Stock Exchange

BOND BROKERAGE SERVICE

UNITED PUBLIC UTILITIES
Wall Street, New York 5

'Vt

INC.ll

UNITED PUBLIC SERVICE

63

t

Mclaughlin, reuss & co

BUDA CO.

c.

5

Tele. NY 1-1293

fiANOVER 2-1355

NEW YORK 5
TELETYPE NY 1-2155

Philadelphia Telephone — Lombard 9008

\:;tr.

d

■

Volume 163

Number 4498

Will

THE COMMERCIAL & FINANCIAL CHRONICLE

(Continued from first page)

.

trived, on the part of private in¬ chinery for the purpose could be
dividuals, as well as the nations contrived, and black markets in
themselves, to escape these con¬ exchange could develop, which all
trols, particularly when opportu¬ the penalties and restrictions en¬

Foreign Exchange Speculation Cease?

*

Speculation in Paper Currencies

Under the terms of its organiza¬

tion, each member nation

agrees

to keep the value of its
money at
a fixed rate with the
currency of
other members and to limit the

spread between the bid and the
asked prices in exchange transac¬

Transactions

in

exchange
of
fluctuating paper currencies be¬
comes a fertile field for specula¬
tion, but is not the kind that ordi¬

narily attracts to it a professional
class, because it cannot be based
on scientific or mathematical prin¬

rate) have been infrequent.

3221

Yet,

nities

at

are afforded for private pe¬
cuniary gains from so doing. The
enforcement of tariffs has led to

times, it is considered to have
quite a business. Like trad¬
ing in futures on the commodity
been

acted

not

(if it has one)

under the gov¬

or

This

virtually

government monopoly

of foreign

exchange transactions.
is

not

in

new

means

The

idea

this age,

but prior
to World War I, government inter¬
ference in exchange dealings was
practically unknown. Except for
discount and bullion operations by
central

of

banks, the foreign values

domestic

currency

and

to

fluctuate

al¬

were

lowed to take their natural

of

speculation.

similar

vented such underground move¬
smuggling;
the
restrictions
on
betting has led to secret "book- ments. : -v ■■, or class of individuals
(i.e. mer¬ making," the licensing or prohibit
Speculation in exchange, there¬
chants)
to another group
(i.e. tion of liquor sales has led to fore, may continue in the
future,
"speakeasys,"
speculators).
and,
as
we
all but it will not be a
healthy sta¬
Without taking up the details know, the fixing of prices has cre¬ bilizer of values as in

that

it

cannot

indica¬

an

be

readily
curbed. Moreover, it is recognized
that gambling of this sort is a
great hindrance to trade, and un¬
v

course

stable currencies constitute one of

condition of. affairs, that spec¬
ulation in foreign exchange be¬

ous

profession and

business.

a

Most large; banks engaged in it,
more or less, and highly skilled
specialists operated in the field.
Through the mechanism of arbi¬
trage, hedging and forward deal¬
ings, a system of transactions was
developed which were little
less

transactions

as

much the rule

exception in
of

cause

have

economic life.

this,

Be¬

exchange

developed

controls
state inter¬

and

that

the

knit

quotas,

monetary
have

come

as well as bilateral
and trade agreements,
into existence.
,,

These

so

to increase its exports and

as

discourage imports, is as detrimen¬
to world prosperity as a war

Great

Britain, * abandoning
gold standard, brought into

of the last

course

nomic

conflict

century, the important trading na¬

nations.

tions of the world established

emasculation

cur¬

gold, the sphere
exchange speculation
the tempo¬
rary or seasonal fluctuations in
prevailing exchange rates. The
gold points (i.e. the normal maxi¬
mum diversions up or down from
of

on

foreign

was

the

limited largely to

fixed

that would

values

a

of making payment),
of fluctuations

means

limits

the

were

that could be expected.

In actual
practice the limits of these fluctu¬
ations were infrequently reached,
since short-terni international
credit transactions that gave rise

to; "bankers
in

most

bills

of

could

cases

exchange,"
eliminate

a

maximum rise

or fall.
Thus, gold
shipments in large amounts could
be
avoided.
Moreover, • central
banks, to avoid drains of gold
which backed their notes,-could
come
into the
picture through
manipulation of
their discount
rates, or through setting a slight
premium on gold, thereby fore¬
stalling any movement against
them through speculation. In this
way an equilibrium of supply and

of

demand

in

terms

the

of the

nation's currency

of

currency

the

great
resulted

This

•

of

our

the

.

in

an¬

volved.

small
in¬

sums

But, when conducted by

experts, the profits could be made

reasonably certain.
ness

So the busi¬

conducted,

was

not

on

a

as

the

expertness to conduct it prof itably.
It

was

not

a

field

of enterprise

that attracted outsiders
eral
a

or

the gen¬

public. Yet, it was relatively

large business and, from

nomic and financial

an eco¬

viewpoint,

an

important and essential business.




stricted

been

is

The

therefore,

question,

of

currencies.

exchange

under

would

stances

be

private traders.
"jump

effort

not

currencies.

applying

trade

developments.
temporary

allow

in

comes

stabilizer.

for

His

as

effective

an

function

is

nulli¬
fied under rigid price
fixing, but
his place can be taken by another

who, with the

group,

same

mo¬

tives of gain, can reap illegitimate

to

the traces," and effect

over

does

ulator

circum¬

an

of

uncontrolled and fluctuating ex¬
change rates, the legitimate spec¬

nor¬

handicap to

a

function

disturbances of equilibrium. With

What would be

than

natural

more

the

international

domestic

changing

It

currency

"scarce," from

as

of

rigid
parities does not meet the needs

situation would prevent a

a

classed

of

re¬

rewards

underhandedly.

Thus,

underhand

means

speculation

trading? Through secret

agree¬

transactions may disappear, but

outside

some

of

or

in

foreign

exchange
a

form of speculation may take

ments, or other subterfuge meth¬

new

ods,

arises

might not be

means

This

mally doing business (i.e. selling)
with other countries. A fixed rate

severely -controlled.
One
might say that since the
Great Depression,
beginning in
1929,
the control has; become
world-wide, and foreign trade has
thus been severely hampered.
whether

nations'

merchant, whose nation's

or.

its place that is less desirable and

means

fect

con¬

would be sought to ef¬

exchange

transactions.

Ma

less beneficial in its effects.

CHICAGO, INDIANAPOLIS & LOUISVILLE
RAILWAY COMPANY

tensive mercantiHstie nationalism;

GENERAL NOTICE OF EXCHANGE OF SECURITIES

UNDER PLAN OF REORGANIZATION

The Development of Forward

'i-'

■

Exchange

;-;

phaseof foreign exchange
dealings which gave opportunities
for
speculation in the past is
known as Forward Exchange. A
"forward exchange" contract dif¬
fers from a "spot" transaction, in
that it is payable at a later date;
but at the "spot" rate prevailing at

to

orders

a

on

Chicago, Indianapolis

ex¬

future date, and which the holder,
in exchanging it for domestic cur¬

the prevailing
exchange rate at day of payment.
Thus, as the late Lord Keynes
stated,
"the merchant entering
forward contract is not

a

quired

to

find

than if he

ran

cash

the risk

any

the

ex¬

change until the goods were de¬
yet he is protected from

for this sort of insurance above

the

"spot" *rate

is

of

a

field for speculation by

a

experts and others. i-

v

The extent of forward

transactions has

never

exchange

been defi¬

determined, and Dr. Paul

Continental Illinois National Bank and Trust Company of Chicago.

V;"'

learned

and comprehensive treatise

on

obtaining reliable data

garding it.

He

So. LaSalle

rates

the

re¬

count

in

the

states, moreover,

premium

relation

to

the

on

AaA.~:' '

:''aA:''^

'

The

rates

at which

"

Bonds

to

be

will

securities

new

all defaulted coupons attached

are

Surrendered

to

be

delivered

dis¬

"spot"

for

be

made

1

v

by

;■

A''/;i

■

the ^Exchange

"

-

4

exchange for each $1,000 principal amount of surrendered bonds with

in

'

»

■

.

•'■■■

,

will
4

follows:

as

■.'•

■

bonds

^

,

■■'v;f^:

>'■

A/A A

above-mentioned

the

/

■

.Exchange Agent

'

■

>

New Securities to be Delivered

■

1

1

*

1

t

—

—:

■

.

"■

;
■.

,

Certificates
■

1

,

*

-

'1

v"

„■

,

„

\

,*

'u

Couponsto
be attached

V"

'

due

on

-

and

C. I. & L.

Bonds-

C,

Bonds

Refunding Mortgare 6%
;L; Refunding Mortgage 5%

C. I. & L. Refunding Mortgage 4%

"Second'"-'
Mortgage
Bonds V

I.

& L.

First

Mortgage 4%

:

Bonds

—

& L. First & General Mortgage 5% Bonds, Series A
C,. I.•& L. First & General Mortgage 6% Bends, Series B

The

new

bonds

$7,613,800
due

A,

referred

to

principal

January

1,

of

bearing

The

-

1-1-34
-5-1-34
1-1-34

%

t

540
505
507

•'•;404

••

M
"

42.13
45.36

20

will be

delivered

Shares

in bearer

,

•

>

*

18.72
18.76

'*.

'.-.:V
15
''--AA
13
-; 1.6148'.'V;v:,;'14
described more particularly

16.13 -AA*/

♦

17.37;

- ■;

as

Income Bonds,
January 1, 1943, in temporary form with four coupons; and $8,914,496
Louisville Railway Company Second Mortgage 41/2% Income Bonds, Series A, due

1,

1943, in

form with four

temporary

coupons.

•

trust certificates referred to above represent 343,713.8 shares of Class A Common Stock,
195,746 shares of Class B Common Stock, without par value, of the reorganized company.

The bonds

.

Common

21.28

new

and

;

Shares'

-

.

$575

435
407

.

Common.

.

.'

■

Class B

from

interest

principal amount of Chicago, Indianapolis and
January 1, 2003, bearing interest from January

each,

1-1-34
1-1-34

Class A

■

which are to be issued by the reorganized company, are
Chicago, Indianapolis and Louisville Railway Company First Mortgage 4%

above,

amount

1983,

*

.

—

C. I.

follows:

$463

1-1-34

—

—

Bonds--..—--

V':;:

■-

First
Mortgage

/:':-/A;AAAA'A AaAAA/, Issue;:S;'^;:/;-;fe;ff"o;."'V';i;^

.

;

of

the par value of $25;

in $1,000, $500,

and $100 denominations.
The trust certificates
will be delivered in 100-share and less-than-100-share denominations.
Fully registered bonds will not be delivered by the Exchange
Agent.
Scrip in bearer form will be delivered in lieu of bonds in denominations less than $100 and in lieu of trust certificates
only

coupon

for fractional shares, but only in denominations of
largest denominations possible.
,"
,

Interest will

not

and

form

hundredths

of

a

share.

-A

v

In all cases the

new

securities will be issued in the

,

be

paid on bond scrip, and dividends will not be paid on scrip for trust certificates, but a holder of scrip,
upon redeeming the same, will or may be entitled to interest or dividends, in accordance with the terms of the scrip certificates.
of

transmittal

Exchange Agent.

It

are

being mailed to all bondholders whose addresses are known; they may also be secured from the
that exchanges will require a period of approximately two weeks after deposit with the Exchange
1946.
The Exchange Agent will not issue receipts for securities

is expected

Agent, but in no event will deliveries be made prior to June 30,
received by mail unless specifically requested to do so.
In

preparing

Residents
mail

Public quotations of the

(i.e.

,

■'

It Is expected that deliveries of new securities in exchange
Agent beginning on or about June 30, 1946..
>

of

insured,

securities

Indiana
or

-V'

a

shipment,

for

should

through

please

particularly

bank

note
broker.

or

f: ''' -:£

'V"

that it is admittedly highly com¬

plicated.

%

Street

Chicago 90, Illinois

•

subject, complains of the difficult
ties of

231

*

Letters

a

I

*

Window 6—5th floor

Series

or

highly speculative nature and, of
course,

'

Beginning June.l5th,. 1946,.bonds of the above-mentioned issues may be surrendered when accompanied by a Letter of Trans¬
mittal in the form prescribed by the Reorganization Managers, properly filled out and
signed, to the following Exchange Agent;

.

livered:

below

>'

Mortgage Bonds

Chicago, Indianapolis & Louisville Railway Company First and General Mortgage Bonds

re¬

sooner

on

Company Refunding Mortgage Bonds

The Indianapolis & Louisville Railway Company First

rency, must accept

into

LO'uiSvflto Railway

&

•

certain

a

April 24,

on

r

time bill of

change which is due

entered

1946 by the District Court of the United States for the Northern District of Illinois,
Eastern Division, in proceedings under Section 77 of the Bankruptcy Act entitled "In the Matter of
Chicago, Indianapolis &.
Louisville Railway Company, Debtor," No. 54761, said Debtor has been reorganized in accordance with
the Plan of Reorganization ,
confirmed by said Court on January 11, 1946, and the exchange of securities provided for in said Plan is now
announced.

the date of the transaction; It thus

differs also from

.

k

Pursuant

A

nitely

well

have

countries

diminished, and marketing
were
set
up,
which

Einzig, who has written

as

most

barriers

widespread basis, but by individ¬

resources

Such

un¬

two

to maintain

stability

threatened to isolate nations, and
bring about a recrudescence of in¬

uals and institutions that had the
financial

the

among

rigid;controi. ;This^ of course,
is nothing new in the recent his¬
tory of most trading nations since
the beginning of World War I.
Throughout almost the whole of
this period and up to the present,
foreign exchange transactions in

money system.
It led to the re¬
strictive schemes whereby foreign

trade

in foreign exchange party to another, the rates charged

speculations, except at infrequent

compared with the large

transactions

in

the

.

„

relatively

between

sound

; own

fluctu¬
other nation could be maintained
in the
or restored.
<■.meantime." Though "forward ex¬
Because of these conditions, the change" transfers a risk from one

were

change

is

pose

rate of exchange that should exist

of

bear

us

eco¬

consequences of any
ation
in
the
exchanges

intervals,

International Monetary Fund, ex¬

founders

let

in fostering multilateral
trade, is also, in essence, a price
fixing mechanism. Its prime pur¬

This situation

the

of the

purposes

conclusion,

purposes

exchange rate is above or below
the "natural" or "equilibrium"

and

trade,

trading

the

rate of profit

the intents

not

induce the actual shipment of gold
as

Judging from

international

it is in domestic transactions.

etary
Fund,
with
all
its
ad¬
vantages as an international clear¬
ing system and with all its high

would develop when an "official"

der

tal

'

strictions imposed.

Exchange?

its consequent restrictions on in¬
ternational trade, with the systems

of conquest. It was this situation
that developed after 1931, when

Currencies

Black Market

a

in Foreign

member nations will be held

trading nations.
The Effect of Gold-Linked

Will There Be

exchange oper¬
honestly conducted

mind that the International Mon¬

importers, to say nothing of banks,
will be hampered in their
trading
transactions by the exchange re¬

ference in foreign exchange, with

of

quite obvious that, under

past will no longer be present in
the future.

.

private

expansion of
as

sions may arise when exporters or

the

as

into the scheme of that of other

rencies based

It is

specula¬

for

in

,

there may have been in the

opportunities

If

is incompatible with freedom and

In

exchange" transactions.

What
tion

Yet, throughout the
centuries, paper currency

has been

understood

banking structure of each nation

When, in the

come.

renewal of "for¬

a

oly

ations that are

tary Fund which hamper specula¬
tion and profit, a black market in
foreign exchange will be the out¬

the provisions setting up the In¬
ternational Monetary Fund, occa¬

ward

world.

evils, the International
by the general public. It also built Monetary Fund is. set up to com¬
up
an
organization of interna¬ bat. A currency war, whereby each
tional correspondent banks, and nation lowers or
manipulates the
promoted international short-term foreign value of its
monetary unit
credit

basis for

no

the past.

anything, it will be a disturber of
equilibrium and instigator of dis¬
honesty. Intervention or monop¬

transactions arise out of the oper¬
ations of the International Mone¬

interna¬

the worst evils that beset the trad¬

ing

still

of

be

tion

last two

and

disturber

a

or

the first World War is

peo¬

accordance

in

izer

tional monetary stability—(all this
is already well done by Dr. Ein¬

zig)—it may be said that if the
International Monetary Fund suc¬
ceeds in its purposes, there will

conditions of the

known

a

ple, particularly those of foreign
birth, in this speculation following

under this previ¬

came a

as

indulgence of the American

with prevailing
was

it

avoid

But the wild and disastrous

rule.

market.

It

other

and

Banks

institutions

by decree could

or

Hitler, with all his
cruelty, never pre¬

and

exchanges, it shifts the risk of
change in values from one group

tions, It does not prohibit private ciples or expert foresight. Since
foreign exchange dealings, but, in it is of the nature of pure gam¬
effect, it practically puts the con¬ bling^ it lures into its fold the involved in "forward exchange" ated "black markets." And it may
be
trol and regulation of these deal¬ gullible
expected,
that
if
restric¬
public, and is therefore a speculation and without discuss¬
ings under a nation's central bank dangerous and undesirable form ing its value as either an equal¬ tions on private foreign exchange
ernment.

by law

prevent.

cunning

' ■'V'
'

-•

observe

and

■'"vV"

follow

carefully the

•

Chicago,
June

3,

.....v.

Illinois,

.

;•

:

•.

■'

"

'

'

r

<r;

•

.

•

-

1946,
^

,

to

the

form

Letter

of

Transmittal.

It is recommended that securities be sent by

registered

\
JOHN

W. BARRIGER,

ARTHUR

.

p •

instructions "attached

Instruction 10.

• •

,

JOHN

E.

T.

III.

LEONARD,
DWYER, ;

'

'

'

V

.

.

'V:f' '

.'"...-v

Reorganization Managers under the Plan of Reorganization
for Chicago, Indianapolis & Louisville Railway Company.

J

THE COMMERCIAL* & FINANCIAL

3222

Thursday/ Juije: J 3/1946

CHRONICLE

K'0'J

Our first

responsibility is to be ly
ings to expand the area of agree¬
ment; among1 many
peoples all strong. Never again can we count;; If?
on time to mobilize our potential
over the world. Jn that task dur¬

ResponsMityand

America's

world
organization
whose ing the war we had the very es¬
helped to keep by being prepared a
primary objective is to', prevent, sential common ground of com¬
and resolute,
" '
choosing hard courses of action to¬
the outbreak of war and to com¬ mon danger and common enemies1.
day to aviod harder courses of ac¬ Lesson No. 2—United We Stand, bat the conditions and
causes During the war,: points of differ¬
tion tomorrow,, • _;; <',
Divided We Fall
: ■% ...v., J
which produce wars. The fact that ence between the countries fight¬
You reoresent men who learned
nations' have agreed on the ing together for their ; very ex¬
We knew it, we believed it, but 51
to accept hard discipline, to risk We didn't apply it. Having de¬ Charter and: have set up a United istence were ;not magnified. They
tneir lives in tneir country's cause feated the same aggressor in 1918 Nations
Organization * does
not were often passed over, but there
inevitably serious differ¬
and for its freedom rather than by a grand alliance put together mean that all of those;nations are Were
to. save
them at the price;: of in the heat of battle, we fell apart in agreement on many vital ques¬ ences—over the best sthing to do
Under certain circumstances,, who
slavery.
These men know, from in peace. The Nazis gambled on tions. It does mean, however, that
experience the grueling process of this disunity. Their strategy of they have agreed to set up art ^was td do what part of if, and
toughening the mind, the spirit divide and * conquer was imple¬ organization and to Subordinate when. These differences were hot
They involved often
and the body for the strains of mented by non-aggression " pacts within the terms of the Charter academic.
battle. They know the meaning of designed to keep!future victims their sovereign rights as individ¬ millions of people' and even the

3201)

; (Continued from page

force while an aggressor

ThbS^^whQs^: 'i^grandms#i6hd»d,irb
solent .pl?m6 fpn. world; conquest

,

and

tack.

what they

have experienced

learned,
progress

remember " that

will

You

put the leaven of wishful thinking reached
the American loaf,. of unreasonableness ; so

can

in

They can
effectively challenge
wishful i: thinking,
short-sighted

that.some

absurd

responsible leaders'.put

forward the

selfishness'and any tendency, to
retreat again into a fool's paradise.

point

a

the

theory that the fur¬

ther the Axis moved, the weaker

with

the

.

-

.

c

,

—

Weakness Invites

Time after time the Hitler gang

for the
question "who can

and their satellites probed
to the

answer

or

Germany had mentioned .above,^agreement on
before the most essential thing, namely,
the war began. Yet the nations that the e Swedish ; people were
that
finally
fought
together overwhelmingly in sympathy with
couldn't mobilize the faith or will the allied cause - and war aims.
to use the machinery at hand to Without that sympathy and -wither
form a common front. It is not out the sympathy and understand¬
fair to blame the men who rep¬ ing of the members of the Swed¬
resented the democratic countries ish- Government, we
could not
at the League of Nations for this have been able to go1 very far. Al¬
and

Italy

walked out of the League-

Aggression
J

will effectively oppose us?" In

Manchuria in 1931
(before the
Nazis reached;5 power in Ger¬
weakness. The' most perfect nla-.
many), Ethopia in* 1935, occupa¬
tion ; of :y the - Rhineland in -1936, chinery cannot work without the
faith and determination
of the
cynical intervention in Spain in
1936 where that unhappy coun¬ peoples to make it work. Given
try
was ' used
as
a
proving such ^determination, ~ courageous
leaders can be found by the peo¬
ground for new German weapons,
,

.

the

Austrian

occupation-in. 1938

and the final climax at Munich in

ple,to. express this faith and
mination and with ,it they

deter¬
would

The Nazis an¬ at least have a fighting chance to
swered the question themselves. make ; the
imperfect machinery
:/v7T//
They
marched ; i their /;■ armies, work. ///;;/////•
the

year.

same

flaunted

shouted
world

their

their

:

new ;:

insolent

weapons,
of

f aims

conquest. Behind the pro¬

Lesson No. 4—Areas of

£$£ t

representations of the democratic
states
they saw only military
weakness and no really effective
measures to counter their growing
threats. With each new criminal
adventure the Nazi leaders and
their satellites

gained greater con¬
fidence in their ability to succeed

Agreement

Must Be Expanded

There is

testing and disapproving notes and

a

practical les¬

fourth

which I think can be added to

with the apparently static military
weakness
of
the
democratic

these three, and that is,

this—it is

fact that the United Nations exists
because nations
cause

disagreed, not be¬
they agreed. If all nations
.

sity for

an

international body to

It is. because they

luxury, for an adequate defense.

agreements often lead to catastro¬

do

not

agree

and that their

dis¬

miscalculation, fatal in its phes, not only for those immedi¬

the ately concerned but for the world,

but we lost a peace that we

thought had been gained 25 years

£?efpre and

that

we

might have




'*

J

needed te "
effective* " /
We cahf be sure that our cqntribur *.;•
tion will be proportionate and "
therefore large; Yet on every hand * f
we see evidence? of a national imf < ■
patience th strip ourselves to our;
tingents that will be
that: committee

accustomed peacetime: impotence!. Our - military establishment
is - ;
.

being weakened and demoralized;
so that Our leaders confront dif- 5
ficulty in carrying out the com- '
ihitments of our occupation policy,

curity.

as

well

as

undertaking commiU" *:

for security under the
Charter of the United Nations.;

ments

complementary

proccesses

* *

two/ "

/Under the Security Council

are

planned. First, the United Nations
will pool forces pledged to sup- ;;
port
the Charter against any;
breaker of the

peace—prepared to

the
decisions
of the' "
Council to maintain* peace* Sec¬

enforce

ond, the Security Council is re¬
sponsible for formulating plans
for a "system for the regulation pi:
armaments."
...

helped draft
convinced that/
in
parallel lines—building up a se-:
curity system while reducing the
burden of armaments, by mutual
Our

c

leaders who

the Charter were
these

things must move

two

agreeraent.lt
to

back

up.

husbanding

bur responsibility/
that conception by:

our

strength. For we:
responsibility of;

cannot escape the
our

strength by unilaterally

dissi--

pating it,: hoping that pthers:
follow, our example.

wilL

|

'

*

.

'

.

.

tors; These men,

to

their craft after

~

preserve, peace.

final results to them, they lost

; !

:•'

through damage
war, and they are skilled in the,
on the secure base of a great na¬
fighting over
strategy of "divide and conquer,'/
imperative to expand as far as Germany, had forced landings in tion intact, with its power for pro¬
Some are surprised to find that
possible the area of agreement Sweden; Their treatment by' the duction at its highest peak, .with
nations once more free of the im¬
We should never lose sight of the Swedish"
authorities /went 3?far healthy -and skilled people, and

son

powers. They thought we were
soft, unwilling to sacrifice a little

war

•

These • responsibilities . may be
Sacrifices Necessary
*
put for convenience of reference
We will, invite aggression and'
.into, - three classes~~militaryt eco¬
nomic-and moral. In each respect encourage war if we do not den
the; responsibilities are great be* termine now to make whatever,
cause/ this country has come * out sacrifice may be necessary to. hold:
of -the
war
with the / greatest ourselves in readiness to take ourt
power to. carry; responsibility, - ^ full share of military responsibili¬
The fabric of social and eco* ty/for World security
<;;
though /the government officially nomic life ins a large part of the :
Out second responsibility, I sub-* !
had adopted a stand of neutrality
world has been torn asunder. It mit, is to be united. The, Chartein
in the war, the members of the
will take years to rehabilitate the provides .a way for
keeping the
government represented and came war-devastated areas, reorganize
nation^ united in peace as. they
from one of the most democratic
transporation, rebuild roads and were united in war. To the very
people in the world, and that their
bridges, get the wheels of industry end the Nazis hoped?to turn dis¬
personal
sympathies
were
i n turning," revive trade and com¬ aster into triumph by splitting the //
harmony with those of the Swed¬
merce, put agriculture back on its United Nations. Make no mistake
ish people themselves there can be
feet and give the peoples oppor-i about it~^they now hope
for a
no doubt. This-sympathy showed
tunities'for'full and "effective em* third chance, The defeated, who
itself in broad understanding of
ployment of their energies.- t > "I were trained to the philosophy of
our problems. I will mention one
;? We have the power and there¬ aggression, proud in their boast or
example, for it affected vitally the
fore
the
responsibility to help Superiority, bitter and revenge-*
happiness and even the lives of
mightily in this work of rebuild¬ ful, must be watched. They have
over 1,000 of our American avia¬
ing the world economy. We stand the natural '.motive J for making '

beyond any of the requirements of
international law or even custom.

welcome
in the next step as they contrasted agreed automatically on the right
every consideration
their increasing physical strength
things, there would be no neces¬ given to: their physical comfort

On this

blow successfully,

maket

.

Lesson No. 1

a

,

|

Japan,

aggressor r

We noW have an organization of >f;
peace-loving nations through !
which our power can be joined in > |
a united force.' - But some people; : *

:

period of history.

No

,

unfortunately, seem to discount ?'
the need of having this organized -1
and united power.
We "are just!
I think history will describe as now making practical plans for a *
the most encouraging record of
military ^ staff 'committee*
collaboration ever made by allies,
proper balance- of national; con/ ||

it would become.

conception- of

this

States*

United

such

Which ultimate; outcome of the common
reach.; enterprise itself.By keeping our
essential ^ area \ of
One of the greatest, tasks of the eyes ;on ' the
U: N. and of all its subsidiary agreement and the importance of
council^ and - bodies is: to ' widen expanding it by discussion and
Usr far' aS possible," andy in'every negotiation, we- not only obtained
possible field which affects human our objective but we created what

Those who had relations, the area v of "common
job of winning back, that far-¬ agreement; The wider 'that area
your strategic; leadership that I flung territory and those who had becomes the smaller becomes" the
venture to approach the task of to supply the material and pay for area of disagreement from which ft is an immortal monument to
our military leaders. This record
exploring with you the subject it" learned better,; Yet have we arise, -recriminations, disputes and
is the most impressive things I can
"America's
Responsibility / and really learned that the price of
/./ Wim+y
think of as an answer to the faint¬
j
World Security." ■ • ;
\
.
L have had from my own per¬
security or even .survival is unity
hearted
who despair So: easily
If I may be allowed to make a of peace^loyiiig: nation^ against sonal experience the proof that e^when .they: first encounter, dis*
first; aggression, / jn , fact, sent^aL agreement; on even, a srpall
personal reference from my own the
agreements in the* pathway to¬
experience, I should like to pref¬ against even the threat of aggres¬ area 6f real importance can pro¬ ward
peace; ' ..Without;;laboring
sion? // /g
ace my discussion of this subject
ducer useful results where, with¬
these/ points toe far, I.hope you
out that little area of agreement
by a few observations I made
will allow me to recapitulate these,
Lesson No, 3-—Peace Machinery
from my post in the United States
nothing cotilci fhkve been,' pro¬
four lessons which I .personally
-^Governmental or Noh-Goverh- duced,
Shortly beforeP e a r 1
Embassy in London from April,
think we should? have learned
mental—without Public Confi1934, down to a few days before
Harbor,; I was sent front London from recent history—(1) weak¬
i
dence" and Support Cannot '<■
as the U,r
Minister to Sweden
Pearl Harbor.
' \
\ \> \
..,< '■=-.
:
:
Succeed
; ;
"..,
C where I remained throughout the ness invites agression; (2) united
; I went to London in April, 1934,
\ With
all -its handicaps and war.- Sweden .was am island of we " stand, divided we fall; (3)
when the real meaning of Hitlershortcomings the. League * of Na¬ neutrality,; a sort of fortress with^ peace; machinery ;withdut thesupr
ism and its evil purposes had been
tions at least provided a. common in the fortress of German power, port and confidence p£ the peopie
pretty well exposed.. From that
cannot succeeds and (4) we must
table around which the member jt was completely subject to. Gerpost almost in physical touch with
make unceasing efforts to expand
nations plight have planned fur¬ inan blockade- and was organized
the Nazi machine which increased
the area of agreement, v
ther mutual defense against obvi¬ for practically the entire period of
in material power with terrifying
ous
war
makers.
By .1935 the the ' conflict
on
a,. war . basis;
UN. Must Learn From Past
menace, I had the opportunity to
League had lost its greatest po~ Sweeten was subject to great QerT
watch all the signs and. forecasts
In all our discussions of the UN
tential power—the determination Man- pressures, and; made certain
leading to the final eruption.
It
of peoples and their governments concessions when Germany was at I think we will be clearer in our
was our job in the American Em¬
to resort to collective actionwith- the
height of - her power and thinking if we take pains to relate
bassy to watch these f develop¬
the present and the future to the
in the framework of the League. Sweden
physically at her mercy,
ments and to report on them to
past. That is why I have put for¬
our 'Government.
The Nazi pur¬ Wliat might have worked was which the Swedish Government
abandoned for a separatism and felt It cbuld hot: escape^ As .the ward these observations; as ' What
pose was a relentless one and the
it seems to me - we should have
democratic- nations
in
striking self-sufficiency that couldn't, pos¬ Minister of the United Sta'fes, I
sibly work. There was also the had to disagree with practically learned, from the war and the im¬
distance of the beast had waked
timidity born of inadequate mili¬ everything
the
Swedes were mediately preceding war years.
up too late to do anything which
Thq first world war which we
could effectively stop its progress. tary preparation which kept, the forced to do under the pressure
nations remaining in the League of their position and
the Nazi thought had been decisively fought
There is no need to recapitulate
from taking" self-evident, united power. It was my job to try to in¬ was really lost and had to be
the story of those tragic years. All
action. We must remember that it duce the Swedes to reduce those fought out all over again largely
of us there knew that those events
was
men and the public opinion
forced aids to the very minimum. because: we; failed to learn the
were driving relentlessly toward
behind them that dodged danger¬ In .working out various agree¬ jlessons, it taught , „
- .
a climax of catastrophe. It is well,
ous questions, delayed and voted
ments and arrangements, I could
This brings us to a considera¬
however,
to
remind
ourselves
down proposed action in Geneva.
always; stand confidently; on the tion of America's responsibilities
often of the lessons we should
It should never be forgotten that common
area
Ofagreement I for maintaining peace and se-*
learn
from
that.; fateful
brief
is

It

;

surely

have

must ever be in a position to make. *

ual nations-to the decisions
the collective group may

uniting against the next at¬

failed

learned that if, we. are. givep. tim^
will come, to see. our true in¬
terests
and organize
our .vast ;
power to defend them. It is clear .
now that any
future strike for
world domination must start with :
a
sudden; and fatal blow, against,»

.

from

twice

have

'

responsibility. These men, through

is held at

bay by other victims of an assault.

,

that
a

51

nations of

the

matter of common

as.

world,

sense

as

as

well

idealism, have agreed to set

up

Theywere ■
visitors and

treated

as

welfare; Many lives were
saved- through Sweden being an

and

.

with

democratic

institutions

working order,*;
->■

What

we

do

^

in minent

?:<

affects everybody

Indeed, what we fail
do affects every other country.

in the world.

are

now

threat: of 'extermination
less

ready to accommo*

date each other's

views-of what, i$
themselves

in the best interest of

and the world. Experience should
hope for future peace have taught us to expect this, and
and security lies in putting our expecting it, realize that we have
full power behind the United Na¬ to work harder to stay united in
to

Our

,

best

and all of1 the internees
got out of Sweden be¬ tions, not only to prevent the out* peace than to hold together ill
break of another war, but to build war./
fore V-E Day. Sweden was a rela¬
Lord Bryce commented on thi^
up the world conditions favorable
tively ' small area - as < compared to
peace.
: '■ ••
')
problem in a letter he wrote to
with the vast area of conflict. Our
May I suggest three specific the editor of The English Review
efforts there to expand the area
He wrote,
responsibilities which might sum¬ in November, 1918.
of agreement in a limited sphere marize the duties of our country "from* my experience of the dif¬
ference between the English, the
were matched by huge undertak¬ to the United Nations?
asylum
had

been

-'

,

v

Volume 163

v

$

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4498

French, and the Italian way of shall be determined to persist in
looking at, things,. J should jcop- this enterprise.* >'
; A:.i; '■■■ i** »
I am well aware that the proph¬
jecture that the greatest difficulty
would be found in getting any¬ ets of pessimism have predicted
thing agreed upon. Even American failure. They have a colorful ar¬
/ participation would fail to recon¬ ray of facts to display. They can
cile the fundamentally different baffle' us with an unending re¬
"Ways* of regarding these matters." citation of difficulties and pending
4
Change the date and the names, disasters;;. They- can;
impress us
and you might think you heard it
with "the yawning gap. between
; last night on your radio: •
principle and practice.:
!
But" I beg you to notice that
There isn't much to be optiLord Bryce did not conclude with
"/'
:
;':C: •'£
/'-i
a prediction
of disaster.: He ap¬
parently did not assunie that the
!
reality of the difference of view¬
point would cause the nations to

mistic about; only one

^

<

demonstrated

•

to do

their

logic but by faith. It

ficult

they have lost faith

do/ the dif¬

capacity to

thing arid stop trying that

-

■

the pessimists have their lack
faith justified.-.,

|;

have

*

■■

<^f
j'

:

reserve

in

the

we

From this

power.,,

privileged people must
faith

do it not by

in

thing—th$ special responsibility because

capacity of people

great things together. They

is only when

3223

the

come

possibility of

over¬

coming all obstacles and succeed¬
ing in great

If

purposes.

stop

we

else
can
believe
in
peaceful
progress?
You represent the soldiers who
know these three things: the re«*
sponsibility to be strong; the re¬
.

.

sponsibility to be united; and tho
responsibility to stay with the en¬

believing, who else, sitting in the terprise. In the name of those who
midst of ruined cities, facing the stayed
with it until death, wo
spectre

famine /and

of

disease,

confronted by the most elemental

We-in the United States have k~ problems, of remaking life

-r-

who

must all
to

its

and

help America

responsibilities

measure up

for

peacO

security,

"

rehabilitate the Frankenstein that

v
"

had

recently1: deprived them
luxury of even considering
their differences:-He thought it
possible "for peoples who were
sensible enough to agreeto save
themselves from defeat: by united
; action to agree to save themselves
the trouble of. another war by
<

so

of the

"

•

,

.

united action—even while differ-

ing about many other matters.' I.
■j;
He was directing his advice to
r

those perfectionists who insist on
[ complete harmony and regard
anything less as a prelude to
hostilities. Lord Bryce continued^
/ ^'better
to
work; toward your
.

;

; ultimate goal by making a humble
practical beginning. The imrne-

-

"diately essential thing is to

f

vide

pro-

.machinery for averting
-war, and for rebuilding* if pos:Sible, the shattered structure of
international law, By doing this,
-the nations will learn to Cooperate

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1 W 14%

■■

2lj«

391/4

cow

94%

.

591/2 9V

107%
wit

i

I

ZinoU&S
Anaconda Cop
Am
Km

Anchor

V|

77

-TobpiJl"

m

Please notice—we haven't got'a

"^-iinited force yet, We haven't: even
/finished working out. a set Of
Rules to brdei* our discussion and

W"/",

»6%+

trying out various proposals for

61%

WY4

(j 15
.SO

22%

Prdcts
CorneH*0 E

Corn

//i+ *

25

IV

g4 f

61

Com

18+

Tob

191/2
601/2

Cooper-Bes 1
Cooperveld

**

25

1

Ik k »v

Stee»

Cont

,

Fdrt

_

Motors!
Lcont 0j» Of
II

347/»

T

23%-

fi| s>

44% 44

44%

;.46%HiHl Vr.t «v.Kre|

Cont

I

v«\

433k
43%

My.

k

m

coAJL^

181/2

87/,

Ins

Cont

'Vt

£

JWi

S'14%-^1

/5 ' I/

Ud&St

I ibased

^Recognizes

W-.

103
ilk 46

22%

•

,

T

%e 37
S&W120 }
GR1 to.
*

WM

p

.other in ideas."

^

22

*

fCop

RR

^43'i Cons

i.,

sr/4 i73kL

.46e..

42%ContNat

3

-rmr

v

35^
107^4 C

pk

means

conservation of the

tive savings

k

hard-earned, produc¬
briefS

a

the New York Stock Exchange^
regularly, facts

'i: y':\- V

We urge every

of facts

these bonds represent. Even

on

essential to reasoned investment decisions.

3

>

', T ' -*" v *

use

can

j,

investor to make full and frequent
this information. Values change
in
securities asin any other forni ofproperty ,;.in
use? of

#

this market

study of the facts demonstrates the wisdom

as

in any

other.

„

of

Ao/ding War Bonds until they mature;

"

In investment, facts* are -your best protection
-

.

against
TO INVESTORS '•"?

against needless risk

;

facts offer .a;

;;; a

safeguard

bulwark against the

unnecessary

risk. With facts, and only

with facts, you can build toward a sound financial
I future.

• -

v-'-"

-which justice and respect for the

arising from treaties
maintained, and to
promote social progress and better
^obligations
can

be

^standards

of

...

.

.

dom
our

..

.

efforts

oims."

•

life

in

larger

free¬

have resolved to combine
to

accomplish

A/-:,-;1,

NEwRdEK Stock Exchange

these
'

■■

That is our

pledge to our chil¬
dren. If we are worthy adults,
worthy of the sacrifices that made
such

a

bold attempt

possible, we




8

volume of loans is quite low, rep¬
resenting only 6.9% of total assets,
compared with an average of ap¬
proximately 25% for the 17 banks.
Total Government holdings of all
banks were fractionally higher on

Bank and Insurance Stocks
BjrSS .:J A.BlVAN'; DEtJSEN i
This Week

Bank Stocks

—

30,

Sept.

1945,

The latest report

a

reduc¬

Manhattan

shows

perhaps significant that at
special meeting of the
stockholders of Public National
Bank & Trust Company in New
York, the President, E. Chester
Gersten, announced that during
the second quarter of 1946 earn¬
ings have been ahead of the com¬
recent

period last year. He stated ing assets

and

•

■/■

National

84

16.7

41.5

983

32.3

1,012

920

;i,316

43.0

2,765

36.7
2.7
6.2

T._

37
65

36

•

46

—'

826

1.4

—16.0

605 —17.8

1,215

1,206

183

178

2.7

224

217

68

75

+ 10.3

153

162

28.3

544

'602

+ 10.7

622

689

4.8

763

537 —29.6

1,005

5.2

2,007

—

—

4.0

4,404

14.1

2.3

655

2.0

417

461

133 V *.142

26.8

2,520

2,733

+

198

218

10.1

432

422

295

.301

94

90

31.5

146
'

37

;

+
—-

+25.2 $15,199 $15,283

—_$5,636 $7,057

Totals

54.2

;

+

0.6 $22,411
-

4

•

•

•

•

"

664 A/A-1.4//
>

$23,845
•

jjV.V

+

6.4

changes, (1) on direct obligations
or obligations guaranteed as to
principal or interest by the United
States Government was; $329,797,*
882 and (2) on all other collateral
a

-

total

NEW

JERSEY,

*

1945
Circular

on

(2)

the

a

total of $744,769,491.

Sees Loan Ins.

Aiding

Members

New York

Stock

Exchange

Established 1891.

120 BROADWAY, NEW YORK 5, N. Y,

K

Telephone:
Bell

of

the

immediate

housing

MArket 3-3430

1-1248-49

(L. A. Gibbs, Manager Trading Department)

N. Y. Phone—REctor 2-4383

(in billion dollars)*
Reverse lend-lease

actions

Association

of

S. Government," Survey
Business,
November,
1944,

In payment for our lend-lease
to; Great Britain, which amounts

to5] '$30 billion
lion for

been

promised

about

2%%
If

tended.

of the
this

war

10 Post

Office Square"

HUBBARD 0650

us-Z97

/

67

Wall Street

/ WHITEHALL 3-0782
/

*

be only $1 billion.
At present the whole world

)

A

S. £aSalle Street

which

presently

are

1-31875

.

//

PRIVATE WIRE SYSTEM CONNECTING: NEW

YORK, BOSTON, CHICAGO,

PHILADELPHIA, CLEVELAND, LOS ANGELES




CG. 105

being

of

Eastern

be

smaller

than

prior to the war. Russia's
foreign trade will probably not be
much greater than it was in the
thirties.

World trade needs

minimum

a

amount of international "working

capital." I estimated this amount
in 1936 at about $10 billion. Be¬
fore World War I this capital was
provided for by private banking;
this

also the

was

case

during the

"waiver"

in¬

aids,

VI mortgage insurance,
not

bound

be

to

and should
the
building

a

saying that interest has
in years in which the Brit¬
ot 1936-38 will' ba
smaller than Great Britain's imports were
In the average of these pre-war years. We
call' this new type of debt a' "wafver
loan."
France's new loan has the same
to be paid

exports

I

Royal Bank of Scotland
Incorporated by Royal Charter 1727
HEAD

^
Intl.

a

housing

materials,

money—the only one in suffi¬

the present mo¬

ment is

Because of this,

he

money.

said, the

pressures on

lending

institutions
bounds

creased,

of

to

go

sound

the

beyond

banking is in¬

together

with their

~

'

sponsibility.

re¬

OFFICE—Edinburgh

Branches throughout Scotland

is
LONDON OFFICES:
3 Bishopsgale, E. C. 2

con¬

Expected from TJ, 6.

Loans

'/ 'i'.

49

.

Gt. Britain^.-.

Monetary

1947
1.0-1.5

3.75

1.0

Fund-

International

<

*1,4

r

3.0

$2.7

iv'

France

64 New Bond Street, W. I

3.0

1.0

Bank

Export-Import BankdU

Charing Cross, $. W. I

Burlington Gardens, W. /

1950

TOTAL ASSETS

$3.5

; $2.o

;

£115,681,681

0.5
2.0
*3.0

»

Italy ——

0.5
0.5

0.5

3.0

Associated Banks:

0.5

Russia

|

0.9

Austria

2.5

/;

U12.97-1347

personal

*My

contained

Williams Deacon's
/

•

'ft 0.2. it

Netherland
UNRRA

essentials to

In prices

clause.

(In billions of dollars)
Through Through

enterprise should exer¬
keen sense of responsibility

Foley pointed out that of

clause

not

ish

8 WeslSmlthfield, E. C. /

Germany

Government

FRANKLIN 7533
•

NY

Europe is

looking to us for financial help.
Following is a list of the loans

available

cluding the newly restored Title

and

231

countries

bound to

non-Russia

claim on lend-lease account would

0.67

program—land,! men,

4^

This assumption Is certainly an
optimistic one, since the foreign
tradeof Germany^Japan* and/the

amount ex¬
should be

Turkey-

producing soundly built homes
for reasonable prices, he said.
♦ ;

CHICAGO

three

world trade of 1937-38.

ratio

China-

cient cjuantity at

NEW YORK 5

or

applied to all lend-lease, our total

Loan to

in

rINCORPORATED

clause* —two

"waiver"

years after V-J Day, will become
not considerably greater than the

lend-lease, a net
billion, we have
$650 million, or

0.7
0.5

the four

BOSTON 9

bil¬

gross, less $4.5

reverse

amount of $25.5

facing both the immediate
need and *the requirements of the
future, Mr. Foley said, private in¬
dustry should be ready to use all

Mr.

••a*.

no gift exports, and no ex¬
based on loans with a

Part of this amount may be pro¬
vided for by Great Britain with
the help of our loans. The main

pp. 10-12.

Mutual

May 18.

cise

(1EYE1 & CO)

—

the U.

of

Current

of

Private

BANK and INSURANCE STOCKS

46
7

1. Total lend lease

America, FHA Commis¬ sidered:
Total
Raymond M. Foley told the

methods of the past.

PRIMARY MARKETS IN

—with

ports

needs of

,

18 Clinton St., Newark 2, N. J.

BArclay 7-3500

Teletype—NY

Housing Needs

In

Laird, Bissell & Meeds
..

much

on

J. S. Rippel & Co.

trade, let us assume that
the volume of normal world trade

a world trade of perhaps
$30 billions, as before the war, a
world trade working capital of
$7.5 billion will be needed.

During World War H

■,

Savings Banks in New York City

Request

of

world

same

all other collateral $438,-

on

National

!d

what

terms

of money

on

858,143 with

sioner

SECURITIES

Insurance Stocks

in

,

Meet

Casualty

understand

mean

Net lend-lease
39
part, however, will have to be
borrowed, 2. Other disbursements
furnished by the Bretton Woods
basis, as of
; A /abroad
'
.;. 15
institutions, or openly and directly
the close of business April 30,1946,
3. Relief up to now
4
by the U. S.
was (1) on direct obligations of or
In addition to the "working
obligations guaranteed as to prin¬
58
cipal or interest by the United
3 The $3% billion loan to Great Britain
States
Government
$305,911,346 / 2 G. I. liB&ch, *War Period Foreign. Trans¬ Inaugurates a new type of debt. It has a
The

compiled

Private Enterprise to

Fire &

to

sums

finance

TJ. S. Foreign Expenditures

grand total of $731,-

interesting to note that to¬ National^ Exception^® liigH per¬
tal loans and discounts of the 17 cent gains were registered by
banks increased between the two Bankers Trust, Central Hanover,
dates by $1,421,000,000, or 25.2%. Chase, Chemical, Manufacturers,
Two banks, however, failed to National City, Public and U. S.
The new $1,000,000,000 of loan
participate in this expansion, viz.: Trust. Corn Exchange also shows
insurance authorized to the Fed¬
Commercial National and First a high percentage gain, but its
eral Housing Administration by
the
recently
passed
Veterans'
Emergency Housing Act will en¬
Earnings Comparison
able private enterprise to meet
It is

order

In

these

inter-war period, but state guar¬
antees^were growing for;! this fi¬

World War H

borrowed

6.7

1,291

111

money

10.6

4.3

1,299

1,018

%

3.0

8.5

Manufacturers' Tr._

9.4

National—

10.8

754 —25.0

13.3

3.0

+

Trusty,

5.9 'A

2,022

+

Public

3.1

1,066

785

1,421

tf/'S.:

0.7

—

3,081

2.7

762

33.4

—

—

1,784
3,861

+

7.0

527

New

May

of

.

What Will These Billions Mean in
Terms of World Trade?

~

574,413.
'

13.3

2,992
1,025

2,061

244

395

City
York Trust-

1.6

736

228

National

•

4,597

854

Trust

Trust

"

1,521

4,059

+

_____

Irving

2.1

—

7.1

2,960

898

Guaranty

320

327;

total

safely be assumed

that this is a minimum.

During and after World War II nancing. Now, after World War II,
banks, trust companies and
our
expenditures
abroad
(not very little is expected from pri¬
other lenders in the United States,
counting the direct expenses for vate financing." We will, be very
excluding borrowings from other
our Army), have been as follows:
conservative if we assume that to
members of national securities ex¬

$401,77.6,531,

10.9

1,509 j—0.3 f

—

59
120

;

—

%

(000,000)
$1,030

$929

1,497
1,513

69

126

Exchange

%
+ 12.8

888 —12.3

462 /

338

Corn

Decrease

219

607

Nat'l-

First National

Or

1946

222

553

72

B. & T.

&

3-31-

1945

$580

429

Continental

B.

9-30-

-$514

418

Increase

ing Assets

De-

or

(000,000)

.

9.2"

__

Commercial

Chemical

%

£

<*

$390

__

Central Hanover

Chase

1945

(000,000)

Increase

1946 crease

3-31-

9-30-

crease

V-i'

Trust

Bankers

In¬

1946

$357

War, when

Europe was unable to settle h^r
own
affairs, and especially in
1923
when
the Ruhr
struggle

of

Total Earn¬

ernments

3-31-

■//;/

Bk. of Manhattans
Bank of New York

a

City Banks.
U. S. Gov¬

Discounts

for

compared

are

17 leading New York

of

group

1945

'

billion. It can

After the first World

from

total earn¬

ernment holdings and

9-30-

-

The

lation; .loans and discounts, Gov¬

ing and predicted that such loans
would increase further as strikes

'

But our

Evidently the claims on our
lending power are not far from
$25-28 billion. The
obligations
which we were willing to meet

were evaluated in January, 1946
made the by Government authorities at $17

England and France
picture look brighter.

Thus, in the following tabu¬ given by the Exchange, follow:

Day.

that business loans, had been ris¬

A;;/// ;

their debts defaulted.

American hemisphere debtors and
the "cash and carry" payments of

decline in earnings assets, First

Lower in

and

It is

/

a

of

NYSE Borrowings

swing into high pro¬

Loans

six-

the

have been considered, since

17

by $1,434,000,000, or
Five banks, however* show

6.4%.

the

>

duction.

parable

over

'

would
most

Europe

.

in commercial loans is looked for

a

increased

(Continued from page 3198)
Continental

in

,

The latter carry com¬

are overcome

Foreign Lending

threatened to bring about open
National reporting a drop equiva¬
war in Central Europe, not only
particularly
lent to 25% of its Sept. 30, 1945
did we dispatch Charles Dawes
for evidence of an improvement
total.
Especially good percent and his committee to Europe to
in loans and discounts over first
gains are reported by Bank of
put things in shape, but we sent
quarter figures.
Although many
seem
to believe that the banks' Manhattan, Chase, Corn, Manu¬ $200 million, and later, in the
facturers and' Public.
form
of
government - favored
portfolios of Governments will
These increases in
important loans, well over $6 to $7 billion.
show a decline and that deposits
assets since V-J Day, We hardly received a cent back
will be lower* there may be some earning
When a new
surprises in. store.
Federal Re¬ combined with the promise of still of this principal.
further expansion in commercial
serve reports for New York City,
catastrophe threatened in Europe
indicate
a
healthy in June 1931, the word of Presi¬
for example, have shown a slow borrowing,
but steady rise since March 30 in earning condition.
dent Hoover stopped all war debt
holdings of Government bonds, al¬
payments
"for a
year." This
/. J< V-' Vj,w
/" "> r.' % V;, ,/>'
v' .7*
though Treasury Certificates and
"year" has never ended. The pay¬
notes have been declining. Clear¬
ments for private debts from
Central Europe also ceased to
ing House deposits currently are
flow after a while* However, the
only fractionally below totals re¬
same
Austrians
and
Germans
ported for March 28 and April 4
of this year.
The New York Stock Exchange whom we helped and who could
announced on June 4, that bor¬ not pay us back, were able to
It may be of interest to review
certain
figures
shown in the rowings reported by member firms finance the greatest war in his¬
March 31,
1946 statements and as of the close of business on May tory. The balance sheet of our
compare them
with the state¬ 31, aggregated $731,574,413, as help to Europe is thus somewhat
ments of Sept. 30, 1945, which is compared with the figure of $744,- strange if we look at it with a
the first quarterly date after V-J 769,491 on April 30.
Details, as realistic appraisal.

paratively high interest rates and
are among the most profitable of
uses for a bank's loanable funds.
On the other hand, loans against
securities have steadily declined
since V-J Day, but since such
loans carry a low interest rate,
their importance to earnings is
only moderate.
Further increase
strike delays

production.
of

earning assets of the

month period

banks will be examined with spe¬

has borrowed large
reconversion and ex¬
pansion of inventories, and
in
many instances term loans of sub¬
stantial proportions are also being

industries

In

cial interest this year,

Industry

k

banks

corporations

and

statements

Mid-year

fundsfor

obtained.

settled

get back to real

$1,533,000,000,

000, an increase of
or 25.8%.

tional shows the greatest percent
loss with a drop of 29.6%.
Total

become

City is $2,918,000,000, an increase
of $732,000,000, or 33.5%; for the
101 cities the figure is $7,482,000,-

of

the highest percent gain with an
increase of 12.8%, while First Na¬

Leading Cities, at $5,949,-

Yorkf^

for New

tion., Bank

eight

although

banks out of the 17 show

in New York City banks, and in
banks throughout the country, has increased substantially since the
war ended. / On Aug. 15,1945 (V-J Day), total commercial and agri¬
cultural loans of Federal Reserve Member Banks in New York were
reported at $2186,000,000, and for the 101
000,000.

America's Future Role

March 31,1943 than they were on

The volume of commercial loans

as

Thursday, June 13,1946

THE COMMERCIAL & FINANCIAL CHRONICLE

3224

in

estimate,

other

2.5

t$27.85

NATIONAL BANE

not

evidently

tabulations

and

not

(see t).
tSenator
Barkley
emphasized
in
the
Senate Banking and Currency Committee
that during the next
12-18 months not
more than $8 billion would be
paid out.
•tin the grand total there may be some
counted for by Senator Barkley

of INDIA. LIMITED
V

Bankers to the Government in

Kenya Colony and Uganda
Office: 26, Bishopsgate,
v:;London, E. C.

Head
■

overlapping as
some
of the
individual
(or parts of them) may go through

loans
the

Export-Import

tional

ceed

Bank.

Bank

This may,

or the. Interna¬
however, not ex¬

billion.
French loan

$3-4

§The
cludes

some

•

i

of $1,37 billion in¬
lend-lease payments, and also

acquisition of surplus goods in one sum
of $720 million.
$650 million are credits
given

by

the

Export-Import

about $100 million

ships.
follow.

Some other

Bank, Ltd.

Glyn Mills & Co.

Bank,

and

will be given as surplus
credits are expected to

;

■//

Branches In India, Burma, Ceylon, Kenya
:
Colony and Aden and Zanzibar

Subscribed Capital—

Paid-Up Capital
Reserve
The

Fund

£4,000,000
£2,000,000
£2,200,000

conducts every description
banking and exchange business

Bank

Trusteeships and Executorship*
also undertaken

/

of

Volume 163

Number 4498

*U»

THE COMMERCIAL & FINANCIAL CHRONICLE

\

capital of international trade,"
outright loans will become neces¬

the partly decadent economies of

intangible

Europe. He urges that at least

abroad. If

and will be given by us to
the tune of about $15 to $20 bil¬

should take

sary,

lion

showing

we

"national inventory"

a

whether

our

.own

re¬

tion

counter-values

the

for

Formerly

from

not, additional produc¬
domestic

is

market

period of maybe five sources allow us to play the
years, Outright loans of that mag¬ Santa Claus, in which amounts, (3) Our International Responsi?
bility
nitude, might mean a direct in¬ for whom, and for how long.
crease in world trade of
Formerly, when a f amine oc¬
2. Capital exporting
approxi¬
countries,
mately 10% above its prewar vol¬ as a rule, get more back in com¬ curred in Russia, China or India,
ume.
Assuming that they would modities and services after a everyone had the greatest sym¬
have a "multplier" effect, that is while than
they export,
Their pathy for these poor people, but
that the direct
consequence of the balance of trade becomes passive if they could not pay for help they
■

first loans would be

movement

in

secondary

a

world

trade, these

initial loans of $20 to $25 billion
might lead to an increase of world

trade,

in

period of from 5-7
years, of about 25% of the pre¬
war volume.
a

These

;

loans

could,

without
hardship to our economy, be
given, if they could be expected
to be paid back after a reasonable
time.

sible in
the

We have most of

case.

our

materials at

raw

disposal,

our

and the means to convert them in¬
to finished goods. We are becom¬

ing more and more self-sufficient.
The

inevitable
state

the

counter-value

of

of

consequence

this

The Relativity of the Dollar-

could not receive it. It was

Hoover's

affairs will
of

be

that

export

our

Millions

that part

I

early

vegetables;

Famine

dition

even

Mis¬

destroyed
because it could not be exported
was

surplus will buy foreign assets in ture of circumstances, was com¬
a great amount, or that
foreign pletely different from ours, at
countries will become indebted to least until quite recently. Soviet
they will be for those countries us more and more.
Russia had to build up her own
Which will be the
recipients of
3. This will even be more so home, starting from scratch. She is
our loans.
In normal times a U. S.
since our merchant marine has trying to wage an industrial revo¬
dollar buys in Great Britain l1^ to
not only become the greatest, but lution, for which England needed
2 times the volume of commodities
more than 150 years, in 25 to 30
probably the most efficient in the
and services it buys here. In addi¬
world. Formerly, foreign nations, years. Her theory is that the world
will be helped by accepting the
tion, the British population con¬
repaid us in part with their ship¬
sists of 48 million
ideas of communism, but she canpeople, which
Is only about one-third of that of ping service. This will no longer hot
accompany the export of these
be the case, even if American
the U. S. If, in such a
ideas with substantial shipments
relatively money lenders did not
stipulate, of
small economy, $1 billion is in¬
grain, cotton, fats or oils. So
as
they do, that goods bought
this responsibility remains almost
jected, the effect for the individual
against American loans have to be
would be 3 times as strong if the
entirely up to the Western Hemi¬
carried by American ships.
At
purchasing power were the same,
sphere to fulfill, and practically
present the Export-Import Bank
as if such an amount would be
exclusively with the U. S.
To
makes this Cromwellian "naviga¬
added to the economy of the U. S.
what extent shall we fulfill this
tion act" condition.
If the purchasing power should
assumed responsibility?
We will acquire greater and
be *150% the stimulating effect for
greater claims abroad ; without (4) A New World Conscience: A
the economy of
theiUaited Kingr
Guarantee for a Minimum of
dom would be as if 4^ times the bringing any tangible countervalue
home.
A
Calories for Every Human
part of these
same amount were injected into
claims will
consist of
"waiver
Being?
the economy of the U. S. This
is,
loans," a part will turn out to be
so to say, the
We are evidently steering into
"multiplier" of the
involuntary gifts.
a new era of world organization.
dollar-millions in smaller or

higher impact than the
payments are for us, the lenders,

stipulated for a
time. We should

of

claiming^a de¬

the

of

a

fair control of what

or

money

help is being used

for.

•

(c)

No loan of this character
should be given to nations who
refuse to give us the right to de¬
fend

our

when

:

any new respon¬

(d)

,

of

an

should

securitv within the

own

territory

that

nation

arise.

No gift and

other

if and
against us

aggressor

uncertain

no

loan

waiver or
be

should

It would be

super-human if we given to nations who do not make
took them over absolutely oneit evident that this is a real con¬
sidedly. In addition, the danger tribution to
making them more

—that is, against payments. Also,
the attitude of Russia, by the na¬

Of much

be

of

set standards

assurance
our

new

assuming

that the

(b) We should not make any
delivery or any loan without the

.

sibilities,

assurance

military potential
of the respective nation.

do not think that we should

before

must

crease

a

of

the

long period

conception, namely that of
world
consceince,
a
world
responsibility
for
a
minimum
volume of calories for everyone.
However, I think we should stipuate some very clear conditions

a

have

respective nation is not increasing
her military potential. This con¬

/this
new
responsibility,
in principle, which almost over¬
night seems to have arisen out of

re¬

of the crop

the

shirk

sponsibility is not a universal one.
News has just been received from
Holland

harvest and

"World

harvest.

a

This belief in international

not

nation figured in

own

sion," to figure in terms of world

great
sinking funds is made in the form step forward on our part when,
of an excess of imports over ex¬ after the earthquake in Japan in
1922, we sent large volumes of
ports.
commodities and money to help
; Such an excess of imports over
rebuild the country.
/;
exports seems practically impos¬
since the payment for interest and

every

terms of its

imports it could pay for. Now we
have taught the world, first at Hot
Springs in 1943, then at Bretton
Woods, and more recently in At¬
lantic City, and also by Herbert

equally good.

a

over

3225

would be very great that history

self-sustaining,

might repeat itself. When Ameri¬

their

help did not bring in
tude and

turned

(e) We should recive proof that
help is used in a reasonable
way to improve the standard of

grati¬

any

our

certainly not peace, she
disgusted and dis¬

away,

living

interested. It is in the interest of
all nations that this does not

the

in

and to

hap-

nation,

respective

economic causes of

remove

civil war, as well as foreign war.

again.

pen

for

resources

peaceful purposes.

after the last war, saw that her

ca,

developing

and

economic

own

3. General limitation of /"waiver

loans" and gifts. After a period

Some Preconditions for American
Loans and Quasi-Loans

perhaps 18 to 24 months

of

such

no

.

and

4.

nations.

Experience

has

shown

large credits to such na¬

no

war

mongers

loans

to

long to

or are

anywhere, where

money

or

back ot

get counter-values

economic character,

able

quasi

or

of other

intangible character.?:

tangible

ter-values
left to

(a) No credit and no unpaid de¬
liveries

our

will

4. The decision wheth°r reason¬

backed by UN.

outright gifts especially:

or

get

we

tangible

do not be¬

2. For "waiver loans" and

gifts

of

against the U. S. No

nations who

will

we

that

tions who are present or potential

poor¬

er

public, public- help should be given unless there
is a reasonable probability that

1. For all loans,

guaranteed, or private; No loans

do i not to

we

or

are

intangible

coun¬

offered should be

independent experts, and
a

political body.

that

the gifts and loans in the nineteen

The

"multiplier"
for
China
twenties and early thirties, which
owing to incomparably
were not repaid, did not
bring us
lower
purchasing
power,
be
higher than that in Great Britain, greater security, but one of their
ultimate

would,

and it would

almost

become im¬

measurable for the Hottentots.

results

potential of

continue relief deliveries to Eu¬
In

that
to

addition,
we

time.

have declared

we

interested in helping

are

create

some

much

a

larger foreign

trade than before the war, and in

particular

an

international trade

free of most of the restrictions of
the thirties. This, according to the

large-scale

policy,

scheduled

as

by Secretary of Commerce Henry
A.

Wallace, should be brought
about
by all available means,
especially with the help of the fi¬
nancial strength of the U. S. The
main advantages of liberal lending
for the tJ. S. will be:
1. Easier

of

high

full, employment.

or even

2. Protection

against

!

domestic

3. The great advantages of in¬
of

labor,

which is generally recognized but

practiced to
degree.

an

diminishing

ever

4. A higher yield on capital than
is available in this country, where
the government„ can borrow at

less than 2%.
5, The

main

counter-value for
the U. S. will be the good will of
the nations increasing their

all

standards

trade,

and

of

living

by

increasing

foreign

good

will

Important

With

an

;

.

(

an

on

expand¬

;V

' ' *■:/—'A

Objections to Lending

The

$2.4 billion.
ditions

it

Bernard

time

and

tying

our

not

M.

Baruch

again' warned
economy too

has

agajnst

closely




have

Common Stock
Without Nominal

or

Par Value

con¬

difficult to produce $2-$3 billion
a
year
more
if 'markets
had
been available abroad or at home.
With

Light and Power Company

been

Price $40 per

production not far from
$200 billion as at present (in pre¬
prices well beyond $140 bil¬
lion) a* production of $3 or $5

share

a

war

billion

our

will

more

difficulty,

m

Copies of the Prospectus may be obtainedfrom the undersigned only by persons to whom
the undersigned may legally offer these securities under applicable securities laws.

provide

as

soon

as

which except for
some consumer

con-

case very soon.

Stone & Webster Securities

of

A. C. Allyn

our

has

as

to

pay

(overhead)
input

tional

the fixed

of

if they

decide to

production

of delib¬
use

for

such

-

i

Pacific Company of California

Newhard, Cook & Co;

.«

*

»

«

for foreign invest¬

William R. Staats Co.,

%

Henry Dahlberg & Company
-

•

]

r

'

'

r

.

Y-

•

,,

'

;

n\-

Pasadena

,

f

'

-

1

'

f

s

u

Durand & Co.
'L
'

'

*

*

«

-

El worthy & Co.

Butcher & Sherrerd
"H-*

»

The Milwaukee Company
„

>>V

f

i

Corporation

Sutro & Co.

*

f'

Ilill Richards & Co.

Walston, Hoffman & Goodwin

Shuman, Agnew & Co.

Schwabacher & Co.

I

N

First California Company

Estabrook & Co.

their

consumption, production and
or

(Incorporated)

costs

erate choice of the American peo¬

ple,

Refsnes, Ely, Beck & Co.

Central Republic Company

.

typical marginal low-cost output,
a question

White, Weld & Co.

The Wisconsin Company

and
other direct cost elements
for export goods will make for a

g It will be

and Company

Incorporated

l

the addi¬
labor, : materials

anyway,

Dean Witter & Co.

Corporation

,

exports may even be
especially low-cost
production. If domestic consump¬
many

considered

The First Boston Corporation

Blyth & Co., Inc.

dur¬

After production has taken care
our
domestic
consumption,

tion

4

,

'

'

domestic shortages have been

struction and

of

not

;

been raised against these views:
1.

Even under such

would

ment and foreign consumption.

following objections have

The Tucson Gas, Electric

purpose.

1935-1939, we had an average ex¬
port of $2.8 billion, and imports of

investment,

1

<

147,000 Shares

inventory

an

this;

*

Kebbon, McCormick & Co.

^

,

Henry F, Swift & Co.

(2) The Employment Question
High-level

employment

produce export goods is desirable

to if it

helps to acquire tangible

Davis, Skaggs & Co.

is

needed. Use of the labor force to

or

June 7y 1946.

.

■

%|

national gross
production of about $81 billion in

own

together

? ,'f

!

average

business

;

for

■

"National In¬

a

1 don't think such

is

>»

no

Before

ventory" Before Granting Loans?

additional

ing scale.

♦

'] r>v

and-is under

>

"Waiver Loans" and Gifts

(1) Do We Need

hmong those who constantly do

<i.%.V:.vf

Decided

ables, will be the
division

or as

circumstances to be construed as an offering
an offer to buy or as a solicitation of an offer to buy, any of such Shares. ^
The offering is made only by the Prospectus.

Granting Government Loans,

overcome,

depressions.
ternational

of these Shares for sale,
■

Be

substantial

maintenance

our

to

Issues

We have made up our mind to
continue these deliveries and pay¬
ments abroad. We will have to

quite

greater war
enemies during

World War II.

"What Do Such Loans and Gifts
Mean to the U. S.?

rope and Asia for

1151
This advertisement appears as a matter of record only

was a

-;Y-'

Grimm & Co,
Y''c*'T":-Y-

THE COMMERCIAL & FINANCIAL CHRONICLE

3226

and

income for the eight prizeprograms
selected
by

winning

$100,000 contest amount¬
$45,392 on average for the
six
year
period.
Wellington
Fund's performance after all costs

ed to.

r^sulted-in

eurities

Research

&

folder

Corp.—Cur¬

this

of

issues

rent

new

\

-

weekly Investment Timing serv¬

ice, discussing "The Danger of
Pay-Roll Levies for; Union Wel¬
fare" and "Heavy Industry Stocks
Behind

Consumers'

vised folders

on

Goods," " Re¬

National Bond Se¬

National Income

ries and

Series;

Current issues of National Notes

on

Dow-Jones

Sponsor's

Industrial Average.

common

ing

"A modern approach
problems of invest¬

establishing
the
ob-;
jective, r.
selecting - the
se¬
curities
timing the invest¬
ment''; Current-issues of Keynotes
(1) charting national income pay¬
ments to individuals which show
..,

.

t

*

.

...

showing growth in net ,assets of

National Securities Series to $42,-

839,056

of April 30, 1946, and

as

comparing

the

performance

of

Industrial Stocks Series with the

of • social and4: economic

dend

tion^

.Shares,

1W. R. Bull Management Co.—A
.

/'These

Seemed

.Things

1930, that: employment could not
expanded by public policy.
2.

Mutual Fund Reports

Paper

Keystone Custodian Funds* Se-

the

ries

still

I

one

feel

that

the

,B-r2

(iii) Further examination
promised in the White

certain advanced
for creating em-*
ployment: such as greater
/variabilitjrln taxation levels;/
the regulation of hire-purchase transactions/ and the
placing of Government orders
lor consumer goods. No re-.
Paper / of

'J'

measures

/

White

^

/

i

folders

the Metals Series and

on

Building Supply
of

STOCK

-

New

/

REQUEST FROM

YOtk ^WSTMENT

DEALER C& "•

Distributors Group, Incorporated

jf. €3 Wall Street

.

One

~

New Yotk 5, NtYJ

of the

.

investments: today";

Shares
Priced at Market

Securities

Nation-Wide

^
v

NATIONAL SECURITIES &

RESEARCH CORPORATION

ly- 1946, to stockholders of recorq

tially ' because of the lower tax

June 15.-

effect

in

now

quarter

./.

.

The

issue of Abstracts show¬

in Government

bonds and cash.

s

\

Wellington Fund—A quarterly
dividend of; 20 cents per shard

vesting

for

of the -folder "In¬
Widow

a

and

Two

the

This

total

folder

gain

in

Union Bond Fund C

quarters; •" It is be¬
for instance, in some
-1 circles/ that/ the/ White; Paper

/

some

lieved,

=

implies that employment
not

permanent marriage of theory

in

practice

and

policy

employment

-

to me to present more

dif¬

be

maintained

can¬

the

at

and

it did at one time

perplexing

of

corners

the

administrative
mechanism. These are the subject
econ om

i

c

and

of my paper today,

full

4.

Before,

>

*

however, giving

my

'unless the State intervenes with catalogue of problems and of
y detailed plans and programmes subjects on which I wish we knew
} for regulating the activities of mdre .I 'make /two general pre*

:

industries and individual
nesses—an

attitude for

busi¬
which

in my

opinion, the White Paper
provides no support. The White
was concerned with controhing the economic weather,
not in telling each person in/ djvldually; when he should put
up-his umbrella. \

(a) I think it is to be
/
/

'

{

:

assumed

fthat British policy and lech*
nique; ;regardfeg/rthe mainte*;
nance of employment
will be
'based vpn, "feeJ natiohal incopaa
approach."
It is in terms of
national fecome;that the Bril^h
Administration has learnt Its;
economics in the past few years.

(c) In the White Paper there
/were some, obscurities which, in
\

thein.

liminary comments about

'Paper

,

It is in those terms we

think of

; our
problems,
It : is in; those
the two years which have since
relapsed have not been; cleared / terms we will solve our prob¬
lems if they are to be solved.r
up, and promises of further ac¬
tion and enquiry on which no
By the "national income ap¬
proach," of course, I mean the
/subsequent: report. has
been
made to. the public. :. •»';;
procedure of making the best

,

;

f

/

a

;v i.

of
^

possible forecast for a

(i) Great emphasis waslaid
in the Paper on the danger to

,

policy of full employment
industrial

promise was made that "the
tov inform: themselves of the

/extent, and effect of restricv
tive agreements, and of the
activities of combines; and to

-

appropriate action to
practices which may
bring advantages to sectional
producing interests but work

take

;
-

/

ahead of
/

.
•

A

monopoly.

Government will seek power

.12

:•"

(b) The'meaning of the White

:in

'

i' //-■--

an

and certainly success
calls for
further research into many dim

.20

New York 5, N* Y.

unem-

saken

ficulties than

shoWs Union Bond Fund B-iJuJ-1~ '

principal

/ which

for a year
now- for¬
office for a study, the

be put infe/Operation
or" twoi / But/ having

:

.

Children/'

n

of

made

to; be

seems

.29

Union Bond Fund Ai.______

problem

Paper hqs been misunderstood

Union Common Stock Fund_$ .09

Union Preferred, .Stock Fund

commitments

any great/ speed in plans
which will certain; y not need to

with

little urgency.

holders of record June 10:

6/20/46

the

.to
develop and

mdy : be unreasonable

-it

expect new fdeas to

ployment seem remote and of

'

pany,

Fund

Wellington Fund—-Revised, upto-date, issue

that

120 BROADWAY

makes

work

further

published.

have been

new

(a) The present preoccupation bf thy country Is-with ah
extraordinary shortage of labour, with a dearth of invest-

inflationary /p bs i I i q

Comf

of this

the first

for this.

A:fe6ntk-.goods^^.tK';a:i>ofentia*ly'.

Inc.—A quarterly dividend
of 25 cents per share payable July

bonds, vand 2.3%

V

:

on

ing total net assets of Affiliated payable June 29, 1946, to stockt
Fund of $36,214,000 as of April holders of record June 19.
30, of which $8,000,000 consisted
Union Trusteed Funds, Inc.—r
of borrowings. These assets were
The following quarterly dividends
invested 92.7% in common stocks.
2.5% each in preferred stocks and payable June 20, 1946, to share-?

INCOME SERIES

t

of a beginning price of
Dividends
(which corresponds* to the
Institutional Securities^ Ltd.—A
starting price of Affiliated Fund,
semi-annUal cash 'distribution of
multiplied by ten). "Just by mov¬
ing a decimal,"* is" the title of this 3"% cents per share payable July
bulletin. The second bulletin lists 31, 1946 to Insurance "Group shared
/
several of the individual stocks- in holders of record June 30. *

during

..

v;

terms

current

Prospectus upon request from
your investment dealer or

to

18%

rates

1

reatons

period.

year, net income was up substan¬

JIONAL
Series

same

InWst- period, was Income Series with net
Affiliated'Fund assets of $9,988,920. Second in size
showing the ^market action of this was Preferred Stock Series with
fund from the April 1942 low in net assets of $9,458,498.
bulletins

the Affiliated Fund Portfolio and

**

assets of Keystdne S-3 rose from

Lord, Abbett--^urrent

shows that while sales were down

irities

compared with $14,273,704 at the tioh day/have:become somewhat
beginning of the period. Total net dimmed/ I think' there are many

$15,677,667 in- the
As of April 30, all
June issue of The New York Let¬ ten series of Keystone Custodian
ter giving this Sponsor's apprai¬ Ftinds^ had/combined ^totaL assets
of about $180,OOOjOOOr ;> Vs
sal of* the relative profit
possibili¬
ties and relative price risk in 20
| National .Securities' Series^-An^
leadings industry stock; groups; nual report of National Securities
Current bulletins on the Building Series for the year ended April
industry and^orf "How Stock 30, .1946, shows fetal net assets, of
Profits. Are MStde" through bay¬ all- nine series amounting "to $42,ing into the industries thai have a 839,056, as compared with $23,favorable outlook; Revised pros¬ 638,455 at the .beginning of the
pectus of New York Stocks, fee., fijscal year. The largest series in
dated May 20, 1946.
ip the group 'at theend Of " this
*

■

YorktStocks;-;. outlining

good

ment

J

Series

why these issues "may be consid¬ $11,403,441

ered

X A PROSPECTUS ON

Industry

.'

this

of

suits

-

RAILROAD

agreement.

nearer

was

r

of the most important decla¬
on economic matters ever

lit¬

fessor Hansen haye got a

>

!

rations

of Mr.

finance

functional

Lerner and Professor Polanyi
when Mr. Terborgh and Protle

-

hurdles

It
|: will be easier to reach final
\ / commitments on the doctrines

Employment Policy is

-on

taking

in

until they have to be taken.

>

\ t"

and S-2—In /its /semfc
annual report for the period end¬ made by a British Government.
ed April 30,. <1946, Keystone B-2 But I must confess the lustre of
an automatic Formula Plam '
:; ^
Hugh iWrt ^ng'jAua'.^d.^!KteW. reports net assets of $16,952,239 as that document aud of its publican

at the top and

not

and

administrator -may,; he/

the

'

>

parts of the argument.: But

be

:

statesman

of

thrown off the view, expressed in
the
British - Treasury Paper
of

•

iiere

the

wise

/

the /important point seemed to be
that the Government had finally

Impor¬

tant."

I

the fundamental inconsistences of

Selected

been

although

| //perhaps

of the details of the

the White '

up

cleared

I.

some

formance of .Broadstreet and Na¬
investment Co.—Current issues of

some

-

financing, / have / not
.

con^

of course, of the sketchi-

of

I
l;

organiza¬
were

of

paper, as to how far the Goyernment should go in' deficit

<

policy, of the evidence, at' some
points, of .compromise with the
errors of the past and, indeed, of

.

items showing recqnt market per¬
tional^ Investors

Most economists

serous,
ness

pectus on Fidelity Fund dated
May 27, 1946
^
Broadstreet
Sales:; Corp.—Current /; issuer:::'of

that public purchasing power is at
boom levels, and (2) comparing

difficulty of selling securities
buying them at the
bottom, with the ease of operating

technique for

Nation-Wide Securities and Divi¬

new 32-page
descriptive : folder on Re¬
(referred to in this col¬ public Investors Fund
Paul
II. Davis & Co'^Revised pros¬
May 23) entitled "How to

containing

a

was

a
brief n outline of the preventing - mai-s unemployment
fund;,; Revised folder, .giving a which committed no one to any
briefs description < ,of//i Dividend particular political creed and was
Shares; / GuriehfcfMefeq^
applicable under different forms

new

Plan Your Investment program,"

Here

trine.:

con¬

taining

.

umn on

to

a net

Nation-Wide I Securities

op

*

-

Keystone' Co.—A
booklet

Employment Policy

on

(Continued from first page)/;
gain of $74,067.
:/j Calvin Bullock—A. new. folder, acceptance of the Keynesian doc¬
agraphs 74-8

Aviation Shares showing
why "practically every account should include some proportion of our
outstanding growth industry"; A new folder "Tobacco Stocijks as 'Con¬
servative Investments for Income and Long-Term Growth"; A new
folder on Building Sharesu A revised folder on Railroad Equipment
Shares; Current Investment News bulletins on Building, Petroleum,
Steel, and Tobacco. National Se-$—
——
Group—A

Papei

-

Digest of Current Literature

;
Distributors

Second Thoughts on British White

-

Barron's

WMualFunds
'

.

Thursday, June 13,1946

check

period

the national income/

and: the various; items, of national expenditure — the Gov¬
ernment being

prepared to sup-

,plement . fp ri vat e aggregate
demand if aggregate expend!-;
/ ture threatens to be insufficient
!to maintain full emp oyment. I
»mention this point because it is
/1 arguable, for reasons I will rey turn to later, that in "the na-r
i: tional income approach" we are
>

;

] trying to be too clever J It may
be that it would be safer, and in
to the detriment of the coun/1 fact more truly scientific,- if we
; try; as -a whole/', .; So C far/ as
/1 simply watched the unemploythe public is aware no special
/ 5; measures have been taken to ifment index and then tried fe do
Vl the right things after the- event
j
implement that undertaking.
:
I instead of engaging in the task
1;'
(ii) The.obscurities of par- H of
creating a national + balance
i i sheet for a forthcoming period
f ; with every item in that balance
4
/'/sheet a matter of estimate. ',/;,
\

-

^Massachusetts
Investors

ey stone

Sfund,
trust

Custoclian
...

.

1 unds
Prospectus

from

your
■.

The

■■

■

:

-

•*..

^

*

by

a

different management

group.

-

map

be obtained

111 DEVONSHIRE STREET

Keystone Company
of Boston

Congress Street, Boa ton 9, Mass.




-

r

NEW YORK

y

:

boston:
CHICAGO

-

5

6i

Broadway

t

110

South

LaSaile

Street

MOit of the problems of
; of /: emp'oyment

♦

which

I / shall

of the /probable
unemployment in
the
United
the. transition r»eriod "proved
td be very wide of the mark.- In Great
Britain,' in the yefcf prior to the " end ol
the war in Europe, economists in official
positions
-were
evenly
d'v:ded
as
to
whether the
transition -: period would be
one of a shorfcage or of a surplus of labour.
Haldol them; that is ^to say, proved , to be
The voffic'al ••estimates

peak

' of

States during

A MUTUAL INVESTMENT
JL°S ANGELES
Rio West Seventh Street

arise

/ '1 TherB are two, very sobering, facts to
which it is .worth while- draw.ng 'attention1.J

,

'

mention

•I from the fact that the: policy of

^

VANCE, SANDERS &; COMPANY

local investment dealer or f
.-/y :>:/•:;

f;/(b)

/maintenance

Of which i& managed independently of the '
other

.

SO

Write for prospectus relating to the shares
of either xtf these investment funds, each

lr

Pro,'-t(tur, from xour investment
220 Real Estate Trust

Building

•

FUND

dealer

or

Phila. 7, Pa.

.

wrong.:

THE COMMERCIAL & FINANCIAL

Volume 163 ; Number-; 4498

Mi.

/.

r

•

....I,.-*

......

full

..ft

CHRONICLE

tunate

but

fish

are

would

sols

answers.

depends upon how many con¬ normally be expected without any
serious modification of the general
tne people will tolerate, what
.heir choice will be between de¬ economic pattern. / This question

that the

inevitable

fattest

li ees

caught nearest

avoided.

be

cannot

of freedom and points in the

-

For

in

the

.

"

-

have

,

when

in mind

speak of

we

'full employment or of a high and
•stable
level
of
unemployment.

has

nargiii of error in the statistics
collected for the '"national income

only

flation.

In

future.

If

ficult the process of
to. a

given degree
change? •
'
>
Z,

limited part to play
special dangers of in¬
the second case, the

a

and creates

informed

more

subject. I would like to see some
comparative studies, as between
countries, of industrial readjusttnent: for example a comparison
of the history of the cotton indus¬

con¬

policy is
successfully pursued of maintain¬
ing high demand for labour would
this (a) increase or decrease the
frequency of structual change and
(b) facilitate or render more dif¬

former case the fight policy is to
z ..
z,z.;z z;ZZ„ Unemployment index,
f
,'W
v, .
«
/ ;7. The
second
doubt I
have take the medicine boldly/get the
II. The Problem of the Target
about the target is more technical./ changes carriedthrough /quickly
5. The first of my problems is If we aim at too precise a target and, in these circumstances, the
"What. level of unemployment we is there not ri; danger, that the maintenance Of total .expenditure
..

see

The first of these

the

cern

"

rapids*.

like to

/t

involves the
It is unfor¬

employment

danger of inflation.

to the

3227

r

a

tries in New England and Lanca¬
shire since 1900 is crying out to
be done.

readjustment
of structural
■

-

,

froom

'it's

within

which

to

out

carry

approach"
,ne

may

;"gap"

that heart breaking question:

to finer

limits than

justified

was

adjustments. ■ Other by» the accuracy of th* statistics
writers, with whom I am in agree- upon which that po.icy was based/
'ment,3 believe hhat this Is''ritt'hm-; No 'engineer would try to work toj

thecotton /industries -of

Britain

the

and

ivere

destined

nent

decline

.he subsequent

Great

a

•

perma-

Would

employment' in
fifteen years?

if

Government pursued a

.even

the form of the taxation, can;

the play queer tricks with output per
normal fi~ nead.
; ' 1
that

deficiency
8. On this matter of the target]
1 or surplus of national expenditure
/therefore^
'con-]
should then be de^lt with by spe- elusions:

-

nancial course; that the

.

*
.

cific Government intervention of
one
'

kind

should

of unemployment.
I think a
detailed statistical examination

tentative

sufficiently

be

more

Government action

all times, the

sufficiently^ flexii
*.£le to enable it to adjust its own
activities if, ill fact, its estimates
rind its weapons

of friction iii
of the effects
of wage changes and taxation
upon the supply Of labour and
productivity would amply jus-?
tify itself. ! of past experience

v

the labour market;

of aggregate private expenditure

proved unsound. Clearly the mar¬
gin of error in conducting such ri
policy is not inconsiderable.3 Sir
William Bevriridge, with his asso¬

.

„

~

Nothing is
the

Z

make, the forecast come true by

pie

the economy as a whole
(I feel that if the Planners coulc
distinguish between a rigid pla^j
rind a forecast, and more sternly
resist the inevitable temptation to
turn a forecast into

-

*

;
'

whatever may be said on other
grounds

-

Kaldor

-

Bu|

against the Beveridgeapproach,'it probably re-

duces the

margin of

in thri

error

'

policy of keeping everybody in a
/ job. ' So that the target we are
*
looking for/ the safe minimum
:;

distance at which

..'from

inflation,

we

is

operate

can

indeterminate.

/ > 2 It is significant that unemployment in
Great

Br'tain

has

though there is

f of labour.
3 Is

alacute over-all shortage

'

•:

*

already reached 3%

an

•

•

'

it unreasonable to

British .Government

:

I

'

•

suggest that the
haMe

should

public

a

■% trial of its economic forecasting by pub¬
lishing

now

Expenditure
-

be

learned

i,- this
and
,

its

estimates

for

1947? A great deal might

from

the

failure

trial.

It

enable

economists

tribution

would

in the

of

awake
to

Income
or

success

public

make

improvement

mates.




and

their

of

the
;•

,i

esti¬

what I have

In many ways

structural change
applies with special force to our
problems of foreign trade.
But
regarding

if consideration* be confined

even

to what may be

oscillations

mal

regarded as nor¬
in
our
foreign

commerce

stacles to

the

there are awkward ob¬
surmount

maintain¬

in

employment. Z Here my
doubts
are
mainly those which
have been expressed by others.
preventing ri business or industry Sir William
Beveridge .has estabfrom meetings its jprbbleftis " by
lisheds that during the nineteenth
cutting .wages (since it would then
century exprirt trade tended-to be
lose its labour quickly) sharpen
the initiating element in cyclical
the

pruning, hook q£ competition
thus

and

speeddp

natural

nomic; readjustment?

' /

-

full

ing

individual; exercising any initia¬
tive?/Would full employment, by

E., A* ZGZ: Robinson

movements.

eco¬

has pointed-out6. that between the
wars the variations in British em¬

'':'/*:

15. I tHink we might more con-

.

,

T

,

,

„

,

*

-

S

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t

.

i

.

..

.

This advertisement is neither

an

"offer to sell;

nor

.

r

^

^ -r

_

t

'

■

solicitation ofoffers to buy any of these securities.

The offering is made only

more

economic doctrines intc

than the

by the Prospectus,

,

x

;

900,000 Shares

disillusion¬

hopelessly

the peot
optimistic

allowed Z to

are

U. S. AIRLINES, INC.

gain

new

methods.

Common Stock

*

/

•-

>Z

/

:

(Par Value $1
K

in.

The Identification of
Structural Change

9. If

Share)

per

1'/«/./.' >'

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-'V

^

J. / 'v

',..^4/ -j

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•

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Price

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policy of full employe
along with a policy
or a high4 standard of living (and
the two ate by no means synonyf
mous) we must take cafe that the
measures
for keeping people in
jobs do not reduce the rate of
technical;progress or the-general
flexibility of the economic aysterri

■
.

a

•-

$3.25

per

Share

ment is to go

Copies of the
.

....

/

'/-

'

:

Prospectus

'

.

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Z'/Zy/Z:-:.z;
.*

^

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Courts & Co.

Cohu & Torrey

How are we, in. pfactice, to distinguish between what

be obtained from any of the undersigned as

j ?/V ' ./•

R. H. Johnson & Co.

by which resources flow to the
points of highest return. That im¬
mediately poses a most prickly

may

registered dealers in securities in this State.

af€

Z'":/-//. ZZZ ;/ ■./.;i/Z/Zv-vv-.;:/;;/

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J. C. Bradford & Co.
George D. B. Bonbright & Co.

Bioren & Co.

problem/

are

usually

described

as

Blair F.

/'struc¬

tural"

changes in the system and
those-zchanges- (cyclical or spo¬
radic) from which recovery can

high

as

is

consistent

with

the

native

ability, the natural resources and the capi¬
equipment of a community.
/
ZZ

ZZ'.Z/.Z;:/://////•,Incorporated

Amott, Baker & Co.
Z

'4 By a high standard of living I mean as

tal

Claybaugh & Co. Ferris & Company Clayton Securities Corporation

ZZ/Z's vZ///,/';Z'v /

.

con- i

16.

said

.

of

interest

.

expenditure;
like.y to bring

in the world would be much safer

than it is' at the moment.)//

permanent structural
h '
: - :;v -,

.

ground concerning the accuracy
of control guaranteed by the

liberty

plan,

a

if

views

; pose over
1

*

new

disrepute

exercising controls for that pur-f

'

are

ment that may come to

"

*

of a

purpose

control of

the

to

the

employment
policy,
in the economic

ployment in the export trades was
fidently approach soipe of these probably greater than the varia¬
questions if we knew more of tions in employment due to fluc¬
what has happened/ in the. past. tuations in home investment.
;/
We JiavO had some statistical and
/ 17. I think it is fair to say that
economic analyses of the pace at none-of the recent British writ¬
which industries expand but much
ings on the Subject of full em¬
jess -has been, done, regarding the
ployment has faced squarely to
decline of industries.
In the light
this issue. " The White Paper it¬
vorse ; than
useless
restriction of
the experience of industry, iri
self really side-stepped it.
For it
chemes?
I think-it is safe to say
the past half century can we say
that, in an economy not iii full that competition will bring about concerned itself with the need for
jmployment, the" answer! i$ nol industrial readjustment as quick¬ a high average level, for British
exports and not with an expert
But what is the answer to ail
ly as is -socially desirable? - Or 1$
scoriomy enjoying a brisk genera it 4rue, as is generally 'believed/ trade free -from Serious fluctua¬
tions.
lemand for labour?
On this, an
'
.
' v
that such changes go on far too
18. The .dilemma here has per¬
analogy (dangerous as analogies slowly in.what is usually describ¬
ire) often, recurs to me.
A man ed
"a lpng drawn out agony." haps been sharpened by the re¬
/am grow old and still -remaih I would ; like to- see a detailed turn ;to' power in Great Britain of
lealthy within the limits of his analysis, of the pace of industrial a Labour * Government. / For to
dwindling physical powers. Why change ih{ Great Britain since 1890 those who are attracted towardj
not an industry?
rind ai^^^inrition; of/the: causes / 5 Full Employment In a Free Society.
12. I come, therefore, to another Of it... I fancy-this would disturb *
6."Economic Journal/'-April 1945.
batch* of questions on which 1 many .existing conceptions on this ;
(Continued on page 3228)
r

(b) .That, in the meantime}
should recognize the crudity
of our -measuring 1 instruments
and not set too narrow a margin

-

for

full

IV. The Problem of Foreign Trade

*;

without

-

system

unemployment,- or would it re¬
mobility by creating the impressiori that .the Sta„te can deal
unemployment

conse¬

all such difficul¬

are

changes/

of the absence of the fear

with

the

which- changes

duce

we

ciate M". Kaldor, have a different
conception of the employment
plan,
Having made their fore-?
"casts of private expenditures and
/' having decided upon the/appr64
*
priate level of Gbverihment ex|
hpenditure r they would seek' U

That we need to know
about the minimum level

(a)

another, but that, at

or

sound

For /any

cause

as

the : event,

of

'

assuming

complex

employer ' could not rely

.

isolate

to

ties, they are less intractable than
those involved in deciding, before

required degree of
/structural, change, would a period
pf high and stable employment
make labour- more mobile, be¬

.

arid the various items of national

^

we

industries

many

structural readjust¬
ment of changes in tariff policy,
of restriction schemes, etc.
But

flexibility of wages to
up- any mistakes in his own

14.

-

expenditure;

the

.

what

sure

am

quences upon

rarely, if ever/ to
of depression?

calculations?

,

:

difficult

upon some
cover

I

that

stroying the comparability of sta¬
tistics.
I agree that it will be

industries less rapidly

new

find

in the nineteenth century changed
in everything but name thus de¬

spring up if there were never
again ri pool of surplus cheap
labour which, at least for a time,
can
be" exploited?
Would new
ventufes be less frequently risked

-

-

industry?

an

would

face the problems

-

*

had

man

ness

States

United

show

to

"possibly high standard of achieve-' Zhbusandths of an { inch if his®
'merit
to
set
ourselves.
They Jauges recorded only to tenths of ?/ It): It 'seems to'me vital that the
"point out that/ even before 1914,; in inch: I fear the economic economic scientist must ^strive to
A|he average rate: of. unemploy¬ statistician, under pressure from provide some objective basis for
ment
was
at least double the
:he statesman,- is not always sc ther"decisions tor be ma:de in/ th^
/Beveridge .target/ and much: •Scrupulous, - It as obvious that the field by the politician -and the
more
than, double, it
between! danger of making economic, administrator. For it is -precisely
the wars.
..They further point 'howlers" increases/ with Violent iere that the full powers of vested
.out that the
conditions of progression as- we approach the
Interests,' of, easy going" optimism;
4he postwar world may tend to limiting position. I content myself' of
po.itical
escapism
will
be
increase the, minimum of fric- with two illustrations; • An estf .draught to bear
doing
-tional unemployment; the wide¬ mate of the employable" populaaothing' or doing precisely the
spread extension of the Social ipn is crucial in the national inW wrong things. Ira an industry con¬
-Services may reduce incentive at
lome approach. But I do not think
fronted* with
r^a 1 / structural
.least at the margin;;the aging of
we know a great deal about-the"
ihange^ the eriapioyer/%ill^ be- in-f
.the population may reduce mo¬ orces which determine employ-i
.lined to argue that if wages can
bility; the rising standard of liv- tble population. If wages increase ae reduced a little all will be
nore people mayZbeZtempted tcf
ang and improvement of individ¬
velh the wage earner that if the
ual taste may. mean
a greater
work; on the - other hand many; employer were only a little more
number of minor discontinuities
efficient all/would /bo well/ the
vorke r s (particularly married;
in the manufacture of consumer women) may then be Inclined to!
statesman that if both will work a
goods; the tendency for capital Irop out of employment <alto-| fittle harder all will be well* And
equipment to becpme more spe- lether.z/Experience in-my coun-j ;he upshot cart so easily be a
: cific
may
multiply
the short ry suggests that taxation policy lonliquidating restriction schemd
which puts off the evil day only
rperiod dislocations in the labour
nay have a marked, though not
-market and so on;
-' »
1 always a ' predictable, influence] it the expense Of making it mort
Behind this clash pf opinion
jpon the number of" people will-] ivil when it arrives*
as to the target lie two other con11. I suppose the crucial query
*ng to work. ; Similarly with pro4
siderations which are much more
luctivity, we cannot with safety tere is: can a declining industry,
-fundamental.
The first is-bound accept the ekpeiieribe/xif :the -past
lot a monopoly,..be. prosperous!
"up with what is meant by an em-j as a secure basis • for forecasting 1 can, an industry suffer a relativri
Our recent experience in the coal
"ployment plan. The White Paper
hrinkage /"without' creating1 all
clearly envisaged. that estimates mining and other industries sug¬ these forms of social; distress in
should be made of what was like- gests that increases in wage rates readjustment Which so frequently
Tly to happen to national income and high levels of taxation,/ or 'lave, turned mOn's minds towards
-

is

,

essential

such
easy./

I recognize that they would bring
the investigator sharply up against

„

13. Would
the general buoy¬
be greater than,
maintenance of expenditure is the
between income and,
ancy of demand make business
obvious, remedy. .Can we put our men readier to
:ly;to a head; in Great Britain by. expenditure we are seeking to fill.:
exploit technical
'Sir William Beveridge, who, in t always felt- during the war thati finger on some groups of unem¬ improvement? Or would the reduc¬
ployment and say these represent tion/of cyclical risks make the
'his recent - book, "Fun Employ- % lot of useless, if not positively
to risks of • innovation loom larger
merit in a Free Society" claims hischievous, policy decisions were: unemployment. ; attributable
"that an average of 3% unemploynadfe, / particularly as/4 regards permanent changes in demand or in the mind of business man?
in technique. / Could we, for ex¬
"ment is sufficient to give the ecoabour allocations and stocks be¬
Would we slow down the rate of
"nomic
system/ sufficient i elbow, cause the policy was worked out, ample, have foreseen nr 1924 that technical development if the busi¬

•This issue "has been brought sharps

I do not pretend that

long period studies will be

''

*

.

' Z:

Incorporated

^ June 12,1946',

Z, : ;

;

'

/: W. H. Bell & Co.
Incorporated

Peabody, Tyner & Co.
Inc.

'

■Ab'-::

.'A"

THE COMMERCIAL & FINANCIAL CHRONICLE

3228

A few weeks
ago
to

Tomorrow's

warn

about

you

a

I started

reactions.

I

ed.

pointed out that the chances
of getting the top of the move
Walter
were
very remote. I even said
that it was likely that stocks
would go a lot higher after
=-By WALTER WHYTE=
we sold them. But
despite the
Markets don't always shout or qualifications I advised sell¬
whisper, sometimes they ing. ^ There is little point in
don't say anything. Right now harping on the profits which

Whyte

Says—

one

of those don't-say-any-

have accumulated.
don't bother to

thing times.
I had

trader

hoped that this week's

Once

a

stock is

would

In fact I

keep a record.
sold, it's sold.

would

The

than

more

Thonghts
Papei on

definitely be interest¬

on
gig1

1

(Continued
the idea of

a

planned

page

3227)^

as. because, m a period of such
get dividends
the only sensible way in which a shortages, employers are inclined
but it is profits that are his
community can be master of its to lose their heads and force

trader likes to

first love.

The

long-termer's

chief interest is dividends and

safety.

Profits theoretically
They're nice if
they come. They're not allimportant. So far as I'm con¬
last.

come

cerned if there isn't

I'm

not

interested.

profit

a

This

is

economy as

economic destiny there is some¬
thing strangely inconsistent, if not
positively exasperating, , in the
thought that the home, economy
must
depend upon the i: uncon¬
.

trolled movements of world trade.
And

I

yet

suspect that the vast
of
people
in
Great

majority

Britain subscribe to the view that

to uqduly high levels. The
by - which wages are
up are complex
but the

wages

processes

moved

experience during war in Great
suggests that one destabil¬

Britain

izing element is this.
The em¬
ployer recognizes that he must
retain, at all costs, his skilled key-

personnel; without them his other

full of

only through much greater free¬

That's all there is to it.

workers become valueless. Wages

dom

in this group,

hope to attain the average level of
exports necessary to prevent a
decline in the standard of living.

People cold-blooded, but it's Wall
asking for a rec¬ Street. If there is a risk there
trades.
I suggest they must be a
profit.
1

glittering generalities.
break-through, or ord of
*
*
save themselves the time and
*
an upside penetration, would
have meant something in a postage.
I'm not looking for
I have been a long-termer
clients. And I have no inten¬
positive v sense.
We
saw
(held them for ;.years) time
neither.
All we have had in tion of sitting down and going and
again. I have no objec¬
the past week is dullness, through old copies of the tion in
being an investor. But
punctuated here and there by "Chronicle" to get up a re¬ I do object when circum¬
stances over which I had little
sporadic bursts of activity. port.
A downside

•

Maybe somebody can make
something out of that. In fact,
judging from literature I have

control,

Incidentally this

good a
time as any to answer mail.
on hand from financial serv¬
It fills up space and
keeps me
ices, quite a lot of people are from talking about the mar¬
making plenty of sense out of ket. Right now we are neither
what is going on today.
It long or short.! We have sold
seems that
everybody has a all the stocks we held at a
secret
method, the use of profit. I can sit back and I
which

as

while not

positive

so

just

coy, are

as

that certain- action

and is all involved in

an

argu¬

ment about

wants

to

terminology. He
know if I prefer

presages higher priced. ' The long-term to short-term trad¬
phrase "higher prices" rolls ing.
He brings up subjects
so
easily on the tongue. £ It's like "best and safest way,"

well-rounded mouth-

a

The writer also asks if I

*

*

More next

IThe

views

article

do

not

expressed in this
necessarily at any
with those of the

coincide
Chronicle.
They are presented at
those of the author only.}
time

cerned with

SUGAR
Exports—Imports—Futures
»*' '
*

.

•

<

,

/•

\

the stock

as

'

•

'

,

c

long is it held.

characterized

as

tions expressed in

the

sense

rela¬

architecture, in

this

that

outward

its

in

public
bank

reflects

the

appearance,

It is when it friendly, considerate attitude

starts to show losses that

tion is called for.

The

ac¬

long-

to¬

ward the public

which is a princpial feature of banking today.
The

DIgby 4-2727

same

point applies to the

general management of floor plan
and facilities. For example, tellers'

equipped with roll-top
desks, invisible from the public
area, enabling each attendant to
lock his currency or other valu¬
ables simply by closing the desk,
thus making
it possible to do
away with grills or screens. In
this way, the bank has somewhat
the appearance of a modern retail
store, devoid of cages and grills.
cages

Pacific Coast
Established

1856

%g£g

H. Hentz & Co.
Members

Securities
i,, ,£• -;

•

York

Stock

Exchange

New

York

Curb

y.-.

1

■'

Pacific Coast Exchanges

Exchange

Cotton

■-gv ;t

Orders Executed on

^gyg'iggg

New

-

Exchange

New

York

Commodity
Chicago
New

Orleans
And

Exchange,
Board

of

Inc.
Trade

Cotton

other

Exchange
Exchanges ■■

Mr. Colt announced that James

Schwabacher & Co.
Members

New

York

NEW

CHICAGO

Chicago Board of Trade

Exchange Bldg.

YORK 4,
DETROIT

N. Y.
PITTSBURGH

GENEVA, SWITZERLAND




14 Wall Street

New York 5, N. Y.

COrtlandt 7-4150

Teletype NY 1-928

Private Wires to Principal
Offices
San

Francisco

Monterey

~

—

Santa Barbara

Oakland
Fresno

—

I.

Clarke

in

Sacramento

will

be

charge of the

Clarke

Stock Exchange
Exchange (Associate)

New York Curb

Y. Cotton

are

has

been

ten

years

we pre¬

in order to in¬
the average level of ex¬
I do not know how the

crease

ports?

exports

choice would go if it
made

had' to be
is,

There

consciously.

as

there¬

and

speculative,

bank's

57th

For the student of the eco¬

how¬
ever, the task is to understand
more fully the links, in the Brit¬
ish economy, between the domes¬

; British exports
normally preg ceded movements in the trade
cycle and may therefore have
been an initiating cause. I think
i|; a detailed analysis is called for

of British foreign

trade during
nineteenth century to de¬

the

ample

g:

practical affairs and their healthy
suspicion of any too rigid appli¬
cation of cut and dried principles.
The
White Paper
says "Action
taken by the Government to main-7
tain expenditure will be fruitless
unless wages and prices are kept
reasonably stable
it will be
essential
that
employers
and
...

should exercise modera¬

tion in wage matters so that in*
creased expenditure provided at
the onset of a* depression may go
to increase the volume of

ment."

for

room

the

employ¬
always

must

"there

But

adjustment of

there must be oppor-f r
tunity for the removal of anom¬
...

remuneration

in the rate of

of different grades and categories
of workers.
The principle of
.

.

.

stability does mean, however, that
increases in the general level of gg
wage rates must be related to in¬
creased

productivity

to in¬
effort."

due

creased efficiency and

The strict economic

logician
of pol¬
icy couched in»such vague phrases.;
23.

is sometimes contemptuous

But in its defense I would remind
you

is

Beveridge has discovered
accident

statistical

a

or

the

erality in its truth, when indi¬
vidual export commodities and

something

markets

are

it much

more

studied, to render
than

a

statistical

the British performed
akin to an economic
miracle
in
redistributing
their
labour
swiftly and in evoking g
eriormously
increased
exertions
war,

,

accident.

without

Postwar British export
trade is likely to be very dif¬

general wage rates.

(b)

ferent in constitution from trade

the

before

The drive for

war.

exports,

associated

inevitable

the

exports, inevi¬
greater diversifi¬
cation of the goods sold abroad.
Will this lead to greater stabil¬
the older staple

tably means

a

total export trade
from year to year and will it
mean
that any decline in ex¬
in

ity

our

ports, because it will be more
widely spread industrially and

geographically,
offset

easily

domestic

will
by

a

expansion?

results

in

between
a

the nations

considerably

ex¬

panded volume of world trade,
then, given the probable consti¬
tution of that trade, fluctuations
in
exports would be smaller
than in the past?
The Problem of Wage

V.

Stability
a

policy of full employ¬

ever

drifts into the frustra¬

If

be

will

which

help

(a)
sive

„

In wartime comprehen- \'
of itself

economic control

(particularly rationing and high
taxation)
for

weakens the demand

increased

Not

so

much,

shortages

wages.

People

fairly rapidly get tired of sav¬
ing and of acting as a post box;
through which their wages are
sent to the Treasury.
But cong trols of this severity cannot be

(b) During the war the Brit¬
public imposed upon them- ;
selves some practices of selfdeception — such as
that of
watching the official cost of liv¬
ing index number and pretend¬
ing that this measured changes
in the cost of living—which
surely cannot be regarded as
ish

perhaps,

because

of labour increase the

bargaining power of the

Unions

•

permanent.

(c) The British Government,
by subsidizing food and other
articles very heavily, kept down
the cost of

living index number.
are clumsy and

These subsidies

inequitable

my guess

wage

■

this

explain

to

success.

be reduced

intemperate

gg;

were,? however, special features of the war economy

increases.

be

/■

There

would
that the immediate cause will

tion of inflation

of

dislocating rise in

any

be more
continued indefnitely if incenpolicy of g tive is to be retained. gg^g'gg!

(c) Are there reasons for be¬
lieving that, if increased col¬
laboration

24.

decline of

enlarged
with

'/.,

that it was in terms of illdefined compromise that, during■; g

whether there is sufficient gen-^

*■

g

probably claim as an exof their sure intuition in

liam

bank include L. G. Pay-

.

Paper referred'
problem in language
regard as

termine whether what Sir Wil¬

office.

Vice-President; H. A. Wat' Assistant
Vice-President;
and
A. K. Murray
and H. C.
Strait, Assistant Treasurers.
•„

White

muddling but the British

would

alies

-

(a) I know of no adequate
g explanation for the fact that beg fore the war fluctuations in

the
son,

are

the

-typical illustration of good old

wages

our

21.

kins,

a

British

be

market.
serious gaps
knowledge of facts and of

suggest there

ment

officers

;;

monopoly gg
personnel tends to fg*.
in

which I fear others will

I

1927 and for

Other

The

tic market and the export

Avenue
new

22.

to the wages

workers

nomics of full employment,

with

was

the

workers

of

of key

in charge of the
Street and Madison

Bankers Trust since

classes

value

office, Mr.

associated

between

differentials;

wage

transmit itself to all classes.

in

Vice-President
new

established

tions

mechanisms,

be

of

pared to accept increased fluctua¬

in

Bankers Trust to Open

retention

unions in favour of the

increase

20.

Rockefeller Gent. Office

primarily con¬
profits. So long
shows profits so

confronting

country. How far are

g

therefore, may rise
very markedly.
But if there is a
strong
tradition
among
trade;

sharp

my

Thursday.

—-Walter Whyte

con¬

is

choice

a

fore^are^unreliable."

filling expression.
S *p e a k sider there is a place for longThe Rockefeller Center office
higher prices and every¬ term operations in the mar¬
of
Bankers Trust
Company of
body smiles benignly in your ket.
New York, will open to the public
*
#
*
direction.
Change the tune
on
June 19th, according to an¬
to
"lower prices" and the
First of all allow me to nouncement on June 3 by S. Sloan
smiles of approval change to
Colt, the bank's President;
point out that, in my opinion, Located ! inthe
International
frowns of disapproval. Every¬
the expression "long-term" or Building, at 51st Street and
body avoids you. You're ap¬ "short-term" is a state of Rockefeller Plaza, the new bank
parently a victim of some¬ mind.
occupies 11,000 square feet on
My objection to long- three floor levels and will be airthing your best friend won't term
trading as such is that it conditioned throughout. In an¬
tell you about.
brings with it a feeling of nouncing the opening, Mr. Colt
said:
ease,
a
sort of they-can'tThis is a bank marked by the
touch-me attitude.
I bought
complete absence of conventional
it for investment. I'm inter¬
LAMBORN & CO.
marble or bronze, cages or bars.
ested in return, not capital Thoroughly functional in plan, a
99 WALL STREET
gains. The short-term trader, friendly atmosphere has been ob¬
NEW YORK 5, N. Y.
tained through the modern use of
or
speculator (to use the hor¬ color, form and lighting. It might
word)

Britain

can

may,fin fact, be

fundamental

sentially

#

about

rid

19.1 There

<

trade

-i

anybody have no - intention of being
just average sense, a rich pulled off that comfortable
man; or if not rich, then pleas¬ perch.
antly situated.
A W.D.B. of Akron writes

Brokerage market letters,

world

stupidity, yet, no indication of any defined
forced me in that position. So policy.
But it may be a straw
in the wind that the Parliamen¬
long as a stock acts well,' so
tary Secretary to the Board of
long shall it be held.
If it j Trade admitted, when discussing
acts badly (if you have a loss the taking over by the Govern¬
it acts badly) I want to get ment of the Liverpool Cotton
out. I don't believe in sitting Market, that some part of our
invisible exports would, thereby,
with losses. Money is cheap be sacrificed
but, he continued,
but not that cheap.
"remittances of this kind are es¬

make

can

in

except

with

N.

</Thursday, June 13, 1946 'J'ib?

have written

could be

column

such

'

i

.

Second

short-termer

It might be the beginning
a
change in trend.
The

of

"

theoreti¬

reaction; cally be uninterested in slight

I advised that all stocks
you
Held be sold at specific
prices.

Markets

is

term

■"

obvious

25.
sons

ent

and

that they

There

by degrees.
are

other

for supposing

system

it is already
will have to

of

good rea-

,

that the pres- • g

wage

adjustment g

[Volume 163
will
of

be

Number 4498

fully tested

full

I

as

months

mentioned

a

"in¬

-j'inj the generallevel,?of

creases

the

levels

rates must be related to
increased productivity due to in¬
wage

efficiency V and effort." |
Putting this more bluntly, we may
Is

there

any

in which

way

could guarantee that average
Wage rates would not increase by
than

1%%

(say)

per

•

the

system is,

wage

at

least for the present, very rigid.
For many years before the war
we

were

down.

go

For

the

prewar
the war

"

where

have

rates

wage

been

has

public

a

British in-

That has led to a de¬
capital reequipment. No one would deny
for extensive

indeed at

as

all

times, is much
But the

cam¬

paign has led to the assumption
that
increased! efficiency
and
increase of production per manV hour are the same thing, i. e.,
that capital costs can be ignored.
There

•

itself, the number of instances

;

time

'some

There

years.

to be wished for.

past seven

and

few

dustry.

-

eight years, with the
boom

third factor

a

y that increased efficiency at this,

wages can go up but can never
or

is

campaign for increased produc¬

mand

drifting into the gen¬

armament

There

yW-y-'y

tion per manhour in
;

eral acceptance of the idea that
,

whole,

a

next

for
;v

.

an¬

.

The

cannot

!:v|wage rates in Great Britain in

num, year in and year out??
On
that I have the following com¬
ments:

> (a)

I

which, to my minds, is likely to
exercise an upward pressure in

We

more

as

(c)

creased

ask:

structure,

wage

help but think that this hybrid
systerh will exercise a powerful
levering influence on the wage

few

that

declared

ago,

11

by a policy
The White

employment.

Paper,

THE COMMERCIAL & FINANCIAL CHRONICLE

to

seems

be

popular

a

chain of reasoning which, so far

been

I understand it, runs thus. If
can
increase
output
per

as

reduced must be very small. It

that, in a system of full
employment, this rigidity will
decline, since workers may, to
an 3 increasing i
degree,
meet

head

wage reductions by moving to a

creased then employers will be
forced to re-equip because they

inclined
so

cur

more

1%%

difficult

per

general

of

wage

labour, if

some

must

go

up

down

than/if

individual rates
but no rates go
rates

can

move

easily in both directions.

(b) -The British Government
has

quite

firmly rejected the
suggestions that have been put
forward in some quarters for a
"national wages policy."
They

prefer to leave

fixation to
process of bar¬
gaining between the two sides
in each industry.
But, for bet¬

the

creases

ter

in

worse,
refrain

.

■

in Britain

we

self to

has

a measure

Now,

the President

as

of

Board

it¬

committed

of "planning."

of the

said

Trade

in

the

House of Commons

on Feb. 27,
1946, "No country in the world,
so far as I know, has yet suc¬
ceeded in carrying through a

planned economy without com¬
pulsion of labour.
Our objec¬
tive

is

:

to

carry

through

that

is

we

should

intervene,

a

collective

process

bargaining

as

are

;

(b)

of their guiding

maintenance

traditional

princi¬
of

differentials

the

creased

course

if

it

redistribution

and

this

were

of

V/2 7o

possible
returns

could

within

to

be

in¬

contemplate

between

capital

labour which did not disturb the total

product of industry,




transmit

this

forecast

delicate

fabric

form

of forecast to his Minister in such
a

for

that the Minister

way

it

fend

with

his

de¬

can

31.

I

colleagues, with

convinced that

am

I

Let me

above.

factors

perhaps

ture

people.
find

..

Those

it

who

suffer

that

odd

will

seems

it is sufficient to

and

will

statesmen

be

the best possible

who have

ers

that these

assume

provided with

The

economic advis¬
full

to

access

information.

nomic
even

and

advisers

these

that

Let

reckless

will

more

fundamental

administra*

give two illustra-*

of the con¬

which

population

the

of

size

man

right

I think in

discussing today.

are

both

administrative

countries the absorption

our

general thinking of the idea
and the grow¬

into

of national income

be made by

range and reliability of the
available statistics of income have

already had a number of import¬
ant results.
First the public un¬

for each step,
ble
balancing

tem

business decisions

can

ing

a

fact

derstanding of the economic sys¬
as a whole has been deepened

where the intangi¬
of pro and con
(which can so easily go on within
one head) has now to go on when
several # heads
are
working to¬
gether and where these heads, if
they happen to conflict, can waste
the precious days when actions is
called for. ' Now I am not saying

position to give

a

the right advice; i. e., they will

always know* what point in the
trade cycle we

have reached and

what addition to national expen¬

diture

will

be

required

the

in

forthcoming, year to maintain emr

nomic matters. Second it has

that

always be in

and

bureaucratic organization where
reasons must be clearly set forth

be

assume

in

make the

of

has, therefore, made it more like¬
ly that countries can arrive at
population policies which com¬
mand general respect and cooper¬
ation.
My second illustration is
drawn actually from the field we

problem of a full employment pol¬
icy is how best these essentially

eco¬

me

on

knowl¬

and to act with speed. He
not, on top of that, be fluent
enough to explain why he reaches
a particular decision or to
spend
time in
justifying his decision.

,

I further

much
on

need

•

29.

too

of

of
the
complex
determine the fu¬

understanding

guesses

will be paragons in courage8
in power of exposition.

men

rely

But for the' business

edge.

to

that states¬

assume

they

intuition and too little

Government

should do this when all
be well. But I

some

a

have

men

area

cept of the net reproduction rate
has contributed enormously to an

am

mountain out of

a

kind

the

tions. The appearance

bound to throw out of work

making

molehill here. Business

the

tive difficulties I have mentioned

Parliament and with the public.

very

limit

and, therefore, in themselves

dissolve

to make forecasts of this kind and

things

will the Government face up to

need

finding

fact

the

ing

industry?

to

choose

ciding

been

much

all

this

cannot

be

done.

and

simple

relatively

a

device

provided by which the individual
can
set
the
national
interest
own private interest
increase the possibility

against his
thus

and

I

public decisions in eco¬
made

wise

of

the statesman.
to him in
simpler terms.
He can put for¬
ward to the public his policy in
language
more
easily
compre¬
hended.
He can, at need, justify
a
policy, which admittedly may
for

easier

Advice

have

drawbacks,

minor

some

terms of a

given

be

can

irt

definable and accepted

concept of the general interest.

is

they

Will

■

way

housing

the

fact,

that

nomic

research

town

busy,

keep

the

decisions.

may

'

-.

to

have

can

by

the

of

success

a

*

-X-,

fl-.

an

detailed

a

•:

'} x

*.

This announcement appears

I think it would be well

m

statistician

I do not agree.

of

up

a

in

specific body

throw light

on

current

up

the way for

public participation

major economic decisions which

of the sub¬

the appalling intricacy

ject has

ques¬

rrJ

V

as a matter

*

•;,

\

; «v-

,

,''

Jy

to now forbidden.

up

;

r

:.,-

•

of word only and is under po circumstances

to

;

,

•„•.<

}

,

be construed

offering of these securities: fcMs^le, or as a solicitation of an offer to buy, any
of such securities. The offering is made only by the Prospectus.

'

•

as

v

.

their

future policy.A purely
objective analysis of their past

\y,

Aviation Maintenance

procedure may be
a
useful
starting point for their thinking.
(c)
In particular,
country we are for
follow

the

double

in

if

my

time

a

aims

of

full

(Par Value $4 Per Share)

employment and a measure of
planning, it seems vital to de¬
cide

just

how

'•

and how
quickly, redistribution of labor
can

be

brought about by

ination

of the

objective
judge.
VI.

which
„

Administrative
a

v1

wage

>

the only

from

.

Factors in

These Securities
^y\ y

'iL''' ff \

$

} f:

hX'

an exam¬

past is

base

i^>~0i>{f'■}•••

'y\'- *7

j

far,

differentials, and here

and

Corporation

Common Stock

to

,;v,»'

to

S *s'

•

*7?;

'/vVjj

' ■"

.'

Jv'v-'

'■?

Offered

are
jylt

as a

*7

' ?V' ji *?

"'.»

*r

•>

.•y• /

[' T '< /J!''

v• ;

(j *m i/jJ V

^o?V>t

1

■

Speculation

Price $4 Per Share
v»>",

«'-

V

T./'V^-1 -'v [\

7

'lTV'.rf!

•}r •

'

* '

>-

Copies of the Prospectus may be obtained from only such
*

Political

,

'

of the undersigned

'

registered dealers in this State,.

as are

Policy of Full

Employment
27.

I

come

finally to

a

question

which might appear to be outside
the ambit of the economist were
it not for the fact, as I

Livingstone & Co.

believe,
1

so

economic

problems

and
are

1

administra¬

now

inextricably mixed

becoming
that

it

is

("

-

'

V

'yr-",<f

y\\ '

r

Cruttenden & Co.

<

*

1

•'

jects.
I

am

not

concerned

much here with the
a

full

employment policy will de¬

mand of statesmen

a

Crowell-Weedon & Co.

so

thought that

high degree

June

11, 1946

s

''

*

'

1

"■•

Nelson Douglass & Co.

impossible to isolate the two sub¬

on

complex phenomena

opening

that informed

knowledge of the past which

confer

can

ISSUE

NEW

benefits

ingenuity of the ,eco¬

the

devising simpler measures

in

us

that, apart from

me

building

of

'

nomic

organization

problem,

seems

is to say, they may interpret effec¬
tive demand in terms of their own earlier
-

nongovernmental

a

or

which

and thus

It

That

,.

not at the end of the

are

a

of essentially

Wherever

i

eco¬

in

little to contribute to the solution*

halls,

which will

the

or

engaged

of this

etc.—anything,
in
the building labour
the' Government
intervenes
in
order to plan
the size of
an
industry they will surely be tempted
to maintain demand to justify that size.
force

statistician

university

demand

satisfied and that the community
an
"&veq|,higher standard in houses,

schools,

fact,

economist

the

But we

build¬

be tempted
out of de¬

not

alternative

in

the

in

contraction

a

the

that,

not

needs

for

This is all to the good.

causes such
likely to be increased or

Unions
in
regard
to
wage
| changes.
Now that we have
officially accepted the policy of
full
employment, the British
Trade Unions may well be com¬
pelled to think hard regarding

28.
7 Of

consti¬

economic

thus

of the rationale of British Trade

tive

the

experi¬

not

and comprehensive examination

operate with the workers using,
one

sound

a

of

which

intuition

and

doubt, he has an important part
the development of con¬
cepts which reduce the complex¬
ity of the thinking required on
certain
subjects,
which enable
discussions to go on in a simpler
to play in

good
a n d
incipient ' inflation
threatens, the precautionary ac¬
tions
by
the
Government
are

think

,

worth while to make

-

that

as

for

I

policy of full employment?

will

ples,

matters

scope

decreased

ing its influence to have wages

of

are

tions

can

are

ticular labour bottleneck by us¬

industry the established

tutes

and

combination

and

ence

everything which goes wrong. On
each occasion when times

adviser

I: causes?: ' Are these

par¬

raised. Over the broader field of

blamed

be

less flexible than they
/ used to be?
If so what are the
rates

a

oc¬

on

clear

these

,

guide production into the nec¬
essary
channels, according to
the plan we have formulated."
Clearly one of these controls
would be wage adjustment.
In
our country, therefore,
we are
likely to have a. "hybrid" sys¬
tem of wage control.
The Gov¬

casions, to try to

will

Government

peculiar

be certain that the

can

economic

an

transmit to his political chief that

British

vless work done, at least in my
country, upon the changes in
the
wage
structure.
Do the
facts support the view that wage

number of controls, in order to

ernment will

In
is

structure there has

a

use

the

because

Whilst there has been
much enquiry into the facts, and
the causes, of changes in price

planned economy without com¬
pulsion of labour. The general
idea

keeping down

(a)

tural expansion.

Government

be in¬
increase

Therefore wage in¬
positively helpful in

by the student.

what

This policy, in
effect,
makes
inevitable the
raising of agricultural wages to
bring them more into line with
wages in other industries.
Or,
another example,
the present

we

is satisfied

26.

committed to

is elegantly described as
healthy and well balanced
agriculture" and the immedi¬
ate food problems of the world
reinforce the case of agricul¬

are

action

there

from

"a

mains

be

to

,

the

are

which

which, in some
quarters and at some times, will
be highly unpalatable.
For in a
"planned" economy (even in an
economy which is "planned" only
to
maintain
full
employment)
where freedom of speech still re¬
measures

has

.

Government
exercising
its influence to bring about an
increase in wage rates in cer¬
tain directions.
For example,
or

cannot

cept

which

It is the procedure by

overcome.

ployment at the full.
/•
am the type of optimist who
de¬
Government, for many reasons,
30.
Given al^ this, however,
clares that so much is bound up
but particularly because of the
there still remains a more subtle with
a
successful
enormous National Debt, is in¬
employment
evitably committed to a policy difficulty, essentially a task of policy that it has got to be done.
But I do not think that it is the
V.-of, low interest fates which,
8 It is important to recognize how much
whatever its advantages,
de¬ we are demanding of statesmen in this most delicate and elusive task of
integration/ that
prives the rate of interest of a respect. ,: Take, for example, British build¬ administrative
part of its normal function of ing policy. The Government is energetic¬ any organization has yet been
ally increasing the building labour force
acting as one of the most im- up to IV2 millions in order to overcome called upon to perform,,
^ .
portant stabilizing prices in the the "back log" in houses as quickly as
: 32. It might at first sight appear
possible.
But when the housing demand
system.

wage

traditional

to

the process of reconstruction. I
think this sort of reasoning is
the more likely to lead to errors

the' upward

annum

movement

rates, and yet bring about the
Uappropriate distribution of

.

labor costs.

<

limit to

to

can

way

will seek ways of

immediately. Clearly it will

be

wages

The

output per head is to re-equip
industry.
If wages can be in¬

to

fight wage reduc¬
energetically. But that
change in attitude will not oc¬

tions

then

creased.

job and therefore be dis¬

new

-

administration

and skill in bringing
public to understand and ac¬

courage

the

we;,

<

may be

•

of

3229

'

THE COMMERCIAL & FINANCIAL CHRONICLE

3230

Thursday, June 13,1946

have

f

Unity of

Economic

Western

Europe

back, let us say
1868, we find that the United
Kingdom imported from Germany
Values amounting to £18,173,000
Germany
In fact
of the notable features of the
to £22,774,000.

amounted
one

to

exports

her

While

history of trade in Europe is its

importance with regard to neigh¬
boring
countries.
Even
though
trade rivalries may at times have
been acute, the great industrial
jhations of western Europe found

customers among their

their best

Dutch

experts as transportation
agents
brought
them
German
credits

decreed for

Germany, the earnings
of the Dutch as transport agents
for manufactured goods would be
out, and the Dutch farmers would
have

to

were

indeed interfered with and some¬

came

broken

times

too

not

up

as

England,

great,

of

result

a

When the disturbances

wars.

were

for

ex¬

take

of their needs

care

commercial fertilizer in some

other

interests

the

importation of
more goods from Germany while
the production of these goods was
in turn a specialty of the German
economy. With the "cow pasture
economy"
(as it is now 'often
called) that has apparently been

for

neighbors.
i These
economic

for

If some of them be¬
chemists, the cost of$ the

way.

fertilizer produced by them would
for an indefinite future time be

enormously increased. Only after

would the Dutch be able to

ample, always kept up her trade

years

relations with neutrals and allies
rela¬

supply themselves with chemical
fertilizers at a reasonable cost and
take over the manufacture of farm

as soon

machinery and implements which

far

as

possible

aimed

to

assume

as

and

as

tions with former enemies

conflict

the

as

was

by

war

mation

way

she

offered

to ferret out trade infor¬
concerning her enemies
her

even

would

She

over.

utilized the opportunities

and

rule

a

economic

allies, all of which

used

be

in

competitive

a

the war was over, but
ready* in times

once

always stood

of peace to

establish and maintain
profitable trade relations even
With her keenest competitors.

before the war were

produced in

Germany. A business man sees at
once in these dislocations an enor¬

Only

waste,

mous

and

decades

after many
tremendous cost

at

could the whole set-up be

changed

to eliminate Germany as a manu¬

facturing nation. The violation of
economic laws involved in
the
process would perpetuate the un¬
toward conditions of the attempted

shift.

Trade Effects of the War

'

,

V.

However,

have been

the

last V two wars
devastating and in¬

so

jurious to all European countries,
alike, that
the production and distribution of
goods is practically nil in the de¬
victors and vanquished

feated countries and at
ebb

in

been

those

the winning

on

a

countries

very

that

low

have

side. More¬

the hatreds

engendered by
the conflict make it well-nigh im¬
possible for the allies to view
their
own
long time/ interests,
economic
and otherwise, in an
objective fashion. The program
agreed upon concerning our for¬
mer enemies, if we take Germany
as an example, involves measures
over,

edicts forbid the manu¬

I Other
facture

various

of

types of ma¬

suppose that

earning their

such

as

supposition.

a

Mr.

Winston

a

to prevent them from
living and then take the

the

bread

he

dress

war,

it is clear that in an economic way
not

all

only Germany but practically
of western Europe is. in a

Slough of Despond. The carrying
but of the Potsdam agreement,
which apparently aims to change

Wilhelmina,'

in

of

Royal

(Continued from

Palace

ini willingly

page

3201)

But

just

because

will

maker

in

the

the

policy

form

end

with

his

ties.

The

few

outstanding

real difficul¬

the policy maker
is inclined to think in terms of a
more

only, the
greater :is the danger that he will
observe
results" only
and
not
causes; and apply policies that, be¬

they do not go to the root

cause

vast

matter,

additions

debt

when

that

all

national

the

to

was

realiy

may

revive demand
industries; he
restrict imports and produc¬

tion

when

was

to

necessary? was to
in capital goods

be
illustrated : by
several examples. In the economic
may

relationship between Holland and
Germany, some of the agricultural
of

Holland

the

war

producing food which
being sent to Germany to be

con¬

areas

before

were

sumed, let
in

chemical

Dutch

farmers

commercial

some

of

to

would

fertilizer

German

Dutch

This

economic

<

and

the

change
into

counter,

go

which

and

the

of

farmers

would

law

specialization

receive

from

farmers

chemists

the

chemists.

was

by the workers
plants. In turn the

us sayv

demands

division

of

and manufacturing
purposes is being seriously ham¬
pered. Only a few instances have
been cited. They could be multi¬
for

heating

plied

over, In the
that have been

ple, while preventing the policy
maker from becoming simplicist.

transporting

some

agents
of the

sentences

v

and

industrial

an

state. Economic historians do

with this and it would seem

agree

to

not

counter

run

to

even

common

sense.

•

Program

•

Again British

Interests

National

The Need for Adequate

Statistics
How

can

Rotterdam.

The

earnings




of

of

must

and

need

Obvi¬

policies in the future is that
statemeh may believe that if only
the momentum carube maintained

high enough-pitch, balance
be

can

maintained

forever.

This

the

hearts

of; the enthusiastic
economists,; who
prefer

ade¬

logic chopping lOj.fap.ts Or the ab¬
stract mathematical reasoner who
prefers symbols tp- human beings.
It might be true inhere were no
boulders on the path. But there

national

financial

statistics.

so

obvious

But
there are just two remarks about
official
statistics that I should
like to make. The view used to be

held that statistics were
byproduct of adminis¬

a,

tration and should be confined to

a

a

an

lie

those subjects for which there was

against

This whole program goes

the

young

that I will not enlarge on it.

simply

of

eco¬

of

indeed

is

One

of

form

organization

unstable.

is the type of view, that is dear to

done?

be

any

research

economic
This

this

behind

ously

widely

Allies'

Germany, isreducedtd

as

compelling and immediate need;

boulders

are

im^tehce^ j England

finds herself on. the horns

of

dilemma

a

winning

after

*a

European balance of power Wa.r;

'

Employment

inflow of new minds and contact

with fresh points of view.

•

>

"T

Require More/if
Elaborate .Research Machinery.! J:
Governments

At the same time there can be

;

doubt that nearly all govern¬

no

they are to make thgm-

ments if

full

for

selves; responsible

em¬

national * economic
they have pos¬
sessed in the past. Such examina¬
tion frequently postulates manda J
tory powers which the; govetiiT
ment alone possesses; it will cer-r
the

an^.the/structure
tojpeet them. The
policy maker musf; not be al owed
must be ready

than

structure

lainly

the em¬

also

necessitate

ployment of many more compe-

experienced economists
governments than has been
in' peacetime in •; the
past.
We may expect indeed a
steady expansion* of the scope of
and

tent

by

customary

government
research; but j the
policy maker would certainly suG
fer&if this led to any restriction

of/private Research.; The private
worker

be constantly ex¬

should

fields, testing new
and old theories, demonstrating
the effects, good and bad, of gov¬
ploring

new

ernment
a

policies.

He-should^be

trail maker and scientific

The Concerns of

the Policy Maker
pptto

been: discussing

have

; I

critic.

of the economic
and.> .the
changes^ to
which it is subject. But the policy

now

study

the

structure.,
maker
with

is

particularly concerned
and above all with

secular

cyclical movements in
activity.
The ■ nature
movements

>

economic
of
be

to

requires

Such
Con¬

stantly examined in order to; as¬
certain the points at which, the

freeflow of production is Bable to
be interrupted, at which demand
will occur, and, if the nation in becomes replete or threatens to
question is an important one, this wane, at which a transfer of. re¬
will be followed by international sources to other activities is likely
disaster. No, it is of the utmost to be required. How should such
importance that, bodies like the business cycle analysis be organ¬
National Bureau-of Economic Re¬ ized—by governments or by pri¬
search should examine and re-ex¬ vate agencies?
to become
sooner or

a

speed "hog. If he does,

later

actional disaster

logical gaps did not matter;
the administrator (and not
the economist) did matter.
Sur¬
veying the results from the rela¬
It is fashionable today to think
cussions also. Who will say when tively elevated altitude of moun¬ amine the whole economic struc¬
tainous
the serious after effects of these
Switzerland, that view ture, check and $est it not only in global terms, in terms of. the
with a view to Understanding its national1 income and the major
dislocations will begin to impinge seemed to me lacking in vision
on
our
own economy?
For the and foresight. It implied no pro¬ mechanism, but with a view to de¬ classes of participants in that in¬
present we are content to charge vision for the future, no thought tecting the weak spots. Work of come, recipients of wages, inter¬
of the interrelationship of eco¬ this sort is, I think, better done est, dividends, etc., or in terms of
most of our difficulties to the war
nomic occurrences. I still think I by a private agency than by the the national product and the main
proper- and not to its aftermath.
was
On the other hand the London
right and that the official government, because no govern- contributors to 5 that productmust
consider
the men t, ; however- scientifically agriculture, mining, manufactur¬
"Economist" has recently referred statistician
to the restrictions that have been working of the whole economic minded, can be relied on to per¬ ing, banking, etc.
Economic-ac¬
the

the

best interests of England

rest of Europe as well

placed

as

on

"a .plan

along with
this program is because some of
their industrialists, who have been
competitors
of
German
indus¬
trialists, hope to get rid of some
of

the English go

their

erstwhile

German

com¬

these

tered in

individuals
this

can

be

respect only at

fos¬

the

expense

does

so

own

economic future.

to be the detriment of her
v

manufactured products of western

Germany through Holland and
giving these goods an exit to
foreign countries via the Port of

that

as

structure or one group of ten¬
dencies ■ after another in the^ ag¬
gregate of forces that contribute
to eeoiwmic changes-secular or

at

times

many

death

of the English nation as
Holland are endowed as none a whole.
England needs economic
other for the production of food¬ productivity in western Europe so
stuffs at lowest
cost. Moreover, that she has
prosperous neighbors
the Dutch procured a goodly part to trade with. If she consents to
of their farm machinery from the the economic destruction of
any
factories of Germany.
western European
country, she
for

such

fore is so to organize the research
as to allow its results to be sim¬

repairs and re¬

placements and shipping of coal
from western Germany to France

and what parts; of that
system he must measure to under¬
stand its working.
•
• ■
But, and this is my
second
point, there is a danger today that
too much will be asked of poor

underdeveloped administra¬
tions. It is much better that such

and

administrations should devote the
limited

they have at
producing accu¬

resources

rate statistics on the

The Dutch also have been

work

list

by the National Bureau

the execution of full employment

their disposal to

of

done

gravest dangers that I .foresee in

tion system needs

such

ecoramie

amining

materials. What is essential there¬

transporta¬

of

areas

Forms of the Research

This research must take many
forms.
I would put first on my
national

of the main pro¬

one

ployment will require a much
more elaborate machinery ior>exr

in France. The French

necessary

international

an

petitors for good. But the interests

agricultural

necessarily

relies.

herently

institute

was

ical plants to develop where they
could do best and produce at least
The

whom ? he

on

conse¬

En g 1 i fe)v

ducing nations of western Europe,

which

to

carrying of larger stocks of raw

all that

labor. This law caused the chem¬

cost.

not of fiction—a record

worker

if

economy

No, the policy
a record of facts

maker.
maker requires

system to facilitate the temporary

on

reason

'v;'

This

much

cr

policy

production of locomotives
has caused considerable suffering
ban

apparently make

the

much less imaginative
less dangerous for the

cyclical. The first type of study
is
important because
economic
stability can never be achieved by
a
structure: which- is itself in4

chinery, including locomotives. It
has
been demonstrated that the

chemical plants in Germany. The
edict of the allies at present would

boomerang for

a

Minister

obligation

Economic Research

prove

system

be

the

devoted main¬
extravagant
with scientific
of effort and meager in result. He ly to examining
care one section after another of
may be induced for instance to
check an impending depression by the whole fabric of the economic

of the

the German economy as
for dislocation and im¬
poverishment." Some disinterested
observers believe that the only

to

j

Prime

assumes

drastic

more

to the whole

quences

ways

1

facts

that

out

'

,

much

the:

mouths to

own

a
in

search presents very

of
the United States, which in the
final analysis will feel the reper¬

allies*.;:

our

relatively few he can himself turn; to check a
clear cut facts
but which Will be
his mind, the contention,
by the 1 research
organization of the essential re¬ mainly used

judgment

that

'

of

were

come

ture, but a charcoal sketch throw¬
ing the essential into prominence.

and

Germany's industrial economy into
an
agrarian economy, is turning

a

out

to ad-- feed, them."
Dutch
The
former

invitation

the

as

way

earning

affairs in such

if feeding the distressed people qf
Europe, including Germany. Most
of us would say that this is ap¬
propriate and all to the goo(jl;
But for some reason he apparently
did not wish to tell the editors of

Informational Requirements for Full

agricultural

place toward the end-of the

Queen
an

association

an

editors

tive

took

of

guest

accepted

that

that

own living as soon
possible. We should be foolish

referred to this question recently
in Holland. While visiting there as

quate

destruction

himself

the Germans

see

our own

nomic

the

Churchill

"I would wish to

to handle

Germany, there seems to be the
assumption that a sharp distinc¬
tion can be made between
an

this

policy in dealing with Germany.
He is also quoted as having added:

prosperity, security, and peace to
other nations. All history refutes

pronounced on some industries in

have paralyzed the produc¬
ability of that country in a
summary fashion.
If we add to

to many, it is a delusion
this would bring

may seem

to

(Continued from first page)
century farther

missed the point at issue. I Amsterdam.
He
is
reported to
merely advocating economic have expressed grave anxiety con¬
sanity for my own country as well cerning the future of Germany
as for England.
However just the and is said to have intimated that
economic suppression of Germany the allies seem to have no explicit
am

No Pleading for Germany

If

anyone

interpret

the pleading"

this

for

should
article

perchance
as "special

Germany, he

will

tial

phenomena,

should

fill

measure

then

thick

a

really essen¬

that

tome

they

with a

only of the imagination
I remember

of their statisticians.

that

one

government not so very

many years ago

produced on ex¬

complete census
of a string of villages without
sending out a single questionnaire
or having any inquiries made on
the spot. I doubt whether some of

ternal request

the

replies

a

furnished

more

re¬

cently to the request—also exter¬

sist

constant

this

in

day

day

by

overhauling

and^year by

year.

Sooner or later

itjfwill be subject¬
veconomize, and
long-term research of this sort,
which may for quite considerable
periods result in no single, strik¬
ing discovery obviously influenc¬
ing policy, will be peculiarly vul¬
ed

to pressure to

nerable to attack.

It will be vul¬

too, if results are obrwhich imply some radical

nerable
tained

change in policy from which some
powerful political? group fears it
may
suffer.
A private agency
presents
other still more im¬
portant advantages! * It affords as
it
were
a
workshop to which
economists
when

some

f turn for help
piecetipf research de¬
can

mands more elaborate

inquiry

or

analysis than can \ be carried out
by

a

single

individual

whole

alone.

The

omists

benefits

and

the

nal—for estimates of national in¬ agency

body of econ¬

work

money

depicted as flows of

expressed

values

producers to the
consumers.

tem

in

from the major

of
classes of

terms

major classes of

Into this vascu ar sys¬

economic
fitted.:.
;X;

the greater part of

phenomena can be
The

provision: of such data if

possible in the form of monthly
returns is no doubt of great con¬
venience to the policy maker. It

permits him to obtain at a glance
an
overall picture of the broad
changes that are taking
economic activity.
But

place in

there is
relying exclusively
form of presentation' for

also danger in
on

this

it is liable to

divert his atteritibn

from cause to effect

and to tempt
of waning

him to overcome causes

activity not by an attack on the
causes themselves but simply by

working floating off the economic bark in

from this facility

collective

tivity is thus

of

the

benefits from the constant

a

flood

of

money.

What

is re¬

quired in business cycle policy; is
first
to
remove
all
obstructiohs

Volume 163
to

the

to

meet

of re¬

changes

COMMERCIAL & FINANCIAL CHRONICLE

THE

research which should

in

adaptation

ready

sources

mand

Number 4498

secular

de¬

also

cover

respond to technologi¬
changes in production and
secondly, to find a temporary al¬
ternative for a demand that has

The

cal

11 The

International Needs

international needs are I
little idifCerent. There is

think

a

receded but may be expected with
confidence to revive later. The

and presentation of data intended

national income analysis if relied

to

on

nomic

exclusively

lead

may

to the

second

expedient always taking
precedence over the first. It is
useful

but

and it

is not

it

dangerous

be

may

enough,

'. Something

wanted,

namely a current analysis of the
wl^ole business cycle situation in¬

dustry by industry. There can I
think be no doubt that the gov¬

need

same

afford

for the

collection

picture of

a

the

eco-

structure, of the constitu¬

ent parts

of the economic world

arid their relative importance,, the
relative contribution of one coun¬

try

is

more*

the

another to world produc¬
world trade, the ratio that

or

tion

or

the

trade

of

the

world

some

or

part of it constitutes of produc¬
tion, the relative importance in
trade of food

ernment can produce national in¬
come figures more
easily, than any
private agency. It can and should
no*

is

materials

raw

or

or

manufactured

doubt

also

produce regular
data about the activity of differ*
ent branches of industry as the
United States government does in
the "Survey of Current Business."
It is I think much

doubtful

more

whether it should be looked to
the best

goods. This general
picture—this instantaneous photo¬
graph—of the. world and its parts
of

particular importance, first
because no
government has so
clear a picture of the world as it
has

unique agency for the
scientific
business
thoughtful,
analysis that I have in mind.
Imagine for instance that business
activity in some country is being
impeded because the lumber in¬
terests or a trade union are mak¬
ing building unprofitable, because

it

area

controls

and

secondly because it is the starting
point for the second
essential
piece

as

or

the

of

of

work,

the

analysis

,

of

those long term tendencies which
can

only be traced by the examin¬

ation of world data.
Business cycle policies, full em¬

ployment policies, must be formu¬
lated in the light of the trend of
dehiographic change, of the com¬

parative rate of growth in agri¬
the government is keeping stocks
culture, industry and trade and in
of Isome important raw material each of the various subdivisions
off

the

under

market

pressure

that make up

from

the agriculturists, because
the government is paying .trans¬
port workers wages out of line
wifh the general. cost structure;
because the foreign exchange has

this aggregate. Out¬
Russia, which as I have al¬

side

readyremarked, • is rather
mass;

than

ment

can

land

a

were

the

prosperity

aster.

•

to

or

rection of trade, for
world

movements.

It

they

signposts
is

it

are as

fer

pointing

to
dis¬

world

or

opportunity to national

an

search workers to
two

studying

The first

re¬

spend a year or

can

the

United Nations Economic and So¬

All this is

i

and

supply, and balance
payments 7• figures
can 7 only
measure the strains to which the

an

as

of

favor

restrictive

tics.

indeed the eauses and hot
their effects

that

matter and

at

in

Bureau of Economic Research and

other
the

scientific

government is really
equipped to imple¬
any promise it may have
made to maintain a high and sta¬
ments,

of what little equipment

1

ble level of

1

and

Croverttmeni; Policies Must Be

7'#-'

Research

This will imply iri the first in¬
an

of business cycle research
similar to the national institu¬
tions to which I have already re¬
ferred. It will imply an examin¬
ation oi the shifts in demand not
organ

sion

than

study

can

statistical

about

will

/predictable

more

than services

than

the

League
at¬
services must in

the first

nent? What is wanted in business

nate and combine

tempted.

analysis is to watch the
points of growth and the points
of * obstruction, to indicate that
advance -or revival is being im¬
cycle

combination

an

tional
or

,

advance

income

granted

x%

of

will

be

is

nothing

in

insofar

intelligently the
manifestations of

scarcely

fall

the

to

that

is

private
the

economic

.

mented

by those

the

the

poJcy makers not for punters on
the stock exchange—even though
It may be easier for the research
worker to become a punter than a

be

policy, whether of governments
credit institutions,
upon
the

or

course

of economic events.

Money in Circulation

With all this information at his

policy maker.

"

What

is

required

each nation

provision
statistics

as

by

I

see

to

afford

,furnished. He will always be
by the difficulty arising
comparability in

of
an

trade to aggregate pro¬
duction,, secondly the provision
also by the government of data
as complete as is compatible with
accuracy showing the changes in
activity, data which should in¬
clude but not be confined to cur¬

private

income;

research

into

and

the

structure

changes it undergoes and finally
in' most ^industrial
countries at
any rate private business cycle




ber banks of the Federal Reserve

bodies; it should be

a

This lack

international statistics.

emanate

these

quasi-coop¬

erative institution and should of¬

identical

before

the

systems of

to the fact that the

or

World

War, that is,

differ.

measurement

statistical-

outbreak

1914, the total

was

of
on

the

first 7

June 30,

$3,459,434,174.

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This advertisement is not, and is under no circumstances to be construed as, fin offering of these
securities for sale, or as an offer to buy, or as a solicitation of an offer to buy, any
of such securities. The offering is made only by the Prospectus.
7'-

7"

.

.

.

fig¬

100,000 Shares

and of
impor¬

Michaels Bros.

consumer

industries

in

the world.

They will be
essential

those

''

as

as

different

to

parts of
useful,

7':7;--7'^

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Common Stock

re¬

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try and

economic

the

Both

the monthly

indeed

picture of the contribu¬
tion of different classes of indus¬

thirdly

cir¬

that held in bank vaults of mem¬

faced

from the lack of

for
coordinating 7 na¬
tional full employment policies as
the figures for each country are
for each country's statesmen and
leaders of industry. 7

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(Par Value $1
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accurate,

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culation after deducting

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quired, which is the most we can
and by Federal Reserve Banks and >
hope for in human affairs. But the
agents. The figures this time are
validity of his guesses will be
those of April 30, 1946, and show
determined in part by the accu¬
that the money in circulation at 7
racy ofthe figures with which-he
that date
(including of course,
is

/

therefore of
it is first the

the - government

adequate

tomary monthly statement show¬

the actual economic situa¬

about

tion, its major causes and possi¬
ble remedies when remedy is re¬

will give the simplest picture

tance of investment and

the

ferent countries are not

be 7successful-should

of world trade,

changes in prosperity
changes in v the : relative

:

.

The Statistical Requirements

and

Treasury* Department - in
Washington has issued its cusr
'The

policy, maker "will
have to make those rough guesses
disposal

refect the best thought in

to

supple¬

of

annual

ures

social,

measure

countries to world economy.

exchange will rise or fall.
The work should be designed for

to

•

to

prepare

Price $8.25 Per Share

Interdependence of Nations

'

But

depressions
and; booms
spread across the face of the
globe
through
the
chanels
of
.

,

trade.

When the

foreign demand
owing to
a slackening of its general activ¬
ity, business in other countries
will suffer, and the balance of
of any country slackens

trade and balance of

these countries
affected.

A

will

7; 7? 7")V-

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Copies of the Prospectus may be obtained in any State only from such dealers barticipaling in this issue as may legally offer this stock under the securities laws of such State.
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payments of
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Company, Inc.

be

constant

watch

will

have therefore to be kept on these

changes in balances and in the di¬

...

from the national bodies. It should

will give an indication of the rel¬
ative
importance > of
different

stock

hence

and

stability.

influence

the

constitutes a chal-

lenge to all economists to make
what
contribution they
can
to

and Social Council

about

information

important countries of
a matter of very genu¬

ine urgency; it

and its various Commissions with

of

collective research in all

more

the world

of - furnishing

of

organization

the

makes

fact

Nations

United

furnish

them to

expect

anything like the adequate serv¬
ices for some years to come. This

govern¬

many

course

they had

both to build

will be forced

System) was $27,884,748,980, as
against $27,878,621,746 on April 30,
of
comparability -may* be -due
1946, and $26,189,396,939 on April
either to the fact that phenomena
30, 1945, and compares with $5,- 7
bearing the same name in two dif¬ 698,214,612 on Oct. 31, 1920. Just

The annual figures,

which must of

na¬

cur¬

such

income

national

certainly

their success.

as

permit

guide their policies and

registered

done

will

ments

the

which

statistics

peded because of one fact or an¬
It is surely unnecessary to
go on from this to foretell that
granted
certain
measures
are

collate, coordi¬

conditions

rency

other.

taken

These

instance

the greater part

lost

machine minders.

.

the Economic

.

But is it necessary to be
prophetic in order to be perti¬

govern¬

up a new

,

the

secretariat

,

is

field

is wanted.

this

activity unless it is
constantly
informed
policies. that govern¬
ments are pursuing.
One of the
important tasks therefore which

changes in
fully
and

formulate

tural

mqn.

have

And in

employment.

international

machinery and train new
This is a seri¬
ous situation when we remember
Changes in economic activity in that great wars tend sooner or
any
country may
result from later to generate great depres¬
changes in demand or its rate of sions. The United Nations have an
growth, changes in production or almost
overwhelming
organiza¬
methods of production or from tional task to perform at the out¬
changes in policy. No responsible set of their career. The most op¬
international
economic
commis¬ timistic internat i 0 n a list can
Scrutinized-

more

'

rain

no

adequately

ment

ments

But

of

bodies, in spite of
improvement in the
equipment of govern¬

the

:

Proposed Organ of Business Cycle

establishment

similar

recent

have to deal.

causes.

the

spite of all the work which has
by the National

been undertaken

Economic and Social Council will

the

important work which the
United Nations services will have
to perform will be the search for

stance

of how much is demanded

once

which at present is lacking and of
how much I have omitted. Indeed

most

;

/

opinion one of the most ur¬
gent problems with which the

simply

of

preparing this list of re¬
quirements I have been conscious

my

It is

list

In

bureau is indeed in

a

this

parability in international statist

as

I

tion of such

in

production policies.

or

in

;■>

important I think and

international institute

have in mind might prove of
great value to the international
policy makers.
But some years
economy of certain countries is in
must pass before it can be rea¬
fact being subjected. Neither the
lized.
The national organs must
one
nor
the other are adequate
be themselves firmly established
for an analysis of causes. Were
before they can give themselves
the new international services to
an international
crown. The pol¬
limit themselves to a statistical
icy-makers cannot wait for this;
presentation of these classes of
they must have at their immedi¬
facts, there would be a grave dan¬ ate
disposal a research bureau
ger that the international policy
equipped with the most compe¬
makers might be tempted to con¬
tent possible staff. The organiza¬
fine 7 their
recommendations ' to

proposals

item

work

begun by the League
for the promotion of greater com¬

of

trade

final

my

gradually

I would add therefore

of workers from

national centers.
such

second

eliminated.

be refreshed by. the

constant flow

a

But national income

figures can only give a picture of
the changes in large aggregates of
demand

overcome.

requirements the continuation of

permanent staff

cial Council.

incomparability

wholly
may
be

should therefore in addition to its

ments

under

be

The

the

which

Subcommission

of

cause

never

problems on
they are engaged at home
in t their international setting.
It

doubt

partly for
this reason that it is proposed to
set up a special Balance of Pay¬
no

country, no govern¬
fpr - consumers'
or
investment
an
agricul¬
goods only, not by the public or
policy or a commercial pol¬
the government only, not for for¬
been stabilized at too high a rate.
icy, no mining or great industrial
eign or domestic goods only but
In ad these cases the government
enterprise can make its plans for
individual
research worker might find him¬ the future without a knowledge the 7 shifts " affecting
commodities
and
individual in¬
self embarrassed or muzzeld. But of
the. world picture
and the
dustries.
It will imply similarly
the policy I makerimtist' be "made world trends. If
long term policy
aware
of the facts and made runs counter to, long term trends, an examination of the factors im¬
peding the transfer of resources to
aware not iri a.haphazard fashion, cyclical
policy will almost cer¬
meet
these
shifts
or
to
meet
but through some agency that is
tainly break down.
changes in the technique of pro¬
adequately equipped to carry on
The League of Nations endeav¬
duction.
independent and scientific work. ored to
present this picture and
There «is
International work of this class
in
my
opinion
the
tracejthese^trends during the 25
and of this, scope will obviously
strongest possible case for reviv¬
years of its existence.
It fur-t
demand' the" ^closest cooperation
ing the business cycle institutes nished in addition
through its
that have suffered from the war
with the governmental research
"Bulletin of Statistics" a nucleus
and of starting such institutes in
bureaus and the national research
of the essential statistics reflect¬
certain countries in which they
institutes. I have»suggested that
ing the variations in world eco¬
the
national
research
institutes
were previously lacking.
nomic activity. But during most
should preferably be private and
1 The reputation of private busi¬
of thqse 25' years the theory of
should supplement national offi¬
ness cycle research has suffered I
cyclical fluctuations was in its
think unduly from the fact that in infancy and not until they and cial work. Should there also be a
private
international
business
on$ or two cases those responsi¬ the League itself were reaching
ble for its conduct have believed their end did governments assume cycle research institute? I think
the arguments I have put forward
in their personal gift of prophecy.
responsibility for maintaining a
in favour of private national in¬
Meteorological offices are charac¬ high and stable level of employ¬
stitutes are valid in the interna¬
terized by the same faith arid are ment.
More
will
be
required
still public, y tolerated.
Maybe therefore of the United Nations tional field. But such an agency
a

3231

June ll, 1946

1

;

■ft

3232

THE COMMERCIAL & FINANCIAL CHRONICLE

ffOur

Reporter

The

Governments"

on

By JOHN T. CIIIPPENDALE, JR.
The government securities markets continue to
display firmness
with price fluctuations confined to narrow
limits.
This indicates
progress in adjusting its position to the changed conditions in
the
.

money markets.
Although volume has not been large, there has
been switching and trading in sufficient amount to
make the market
...

fairly active.
The period from June 3 through June
8, when the
last of the Victory Loan purchases became
long-term holdings for
tax purposes, passed without
any appreciable effect on prices, rv
.

.

.

.

This

was

shar^

in

contrast to the approach of May 15, when individ-ual purchases in the Drive became six months
holdings.
With the

H

alone, this attempt to eliminate the made to the advantages of the
over
the partnership
income tax, after re¬ corporate
form of doing business, but the
ment of our employment and
pro¬ ceiving the support of the House,
duction goals.
In view of the was defeated in the Senate. An reply to this argument usually
limited amount of tax relief that undistributed
profits
tax
was was that the advantages of being
appears to be possible if we are to ultimately
enacted but the cor¬ a corporation were in no sense a
balance a postwar budget of the poration tax was retained. Indeed, special privilege, since' they were
to all persons
similarly
general magnitude of $25 billion, its status as an ad rem tax was open
situated • on the same terms, and
it is important that the
changes further strengthened by the re¬
made in the present tax structure peal of the dividend credit for in¬ that in any case, it was the States
make

.

.

.

.

market since the middle

government securities

have

'

.

investors

and

.

;

.

POTENTIAL SELLERS

Although the government bond market is still
feeling its way,
and at times showing tendencies to
higher prices, it is not likely
that there will be immediate
displays of strength such as have been
evidenced in the past.... While some of the
potential sellers of bonds
have been enabled to hold these obligations because

^

attain¬

should

be

minimize

those
the

which will

tax

corporate

These

are,

then, the basic

rather

help dividual stockholders.

deterrents
consumption and investment.

to

eco¬

The part played by
in

taxes

,

which
cannot
be
altogether
ignored. The corporation,■ as one
of the leading institutions of our
society, has long been endowed in
the
public mind with both in¬
dividuality and taxpaying ability.
If, as some say, the corporation is
nothing but a legal fiction and

hence

than the Federal

ment that offer these

Govern-

'

advantages.

During the late thirties, the corporation tax did receive support
require much discus¬ from some professional economists

financing

War

World

corporation

is

the

fresh

too

Second
in

-

our

nomic considerations which will memories to
determine the role of the corpora¬ sion here.
As iii 1918, supration in the postwar tax structure. normal earnings were subject to
In addition there are
an excess-profits tax which ulti¬
important

political and social considerations

itself, after May 15,
many

traders.
Improved psychological conditions no doubt were
'very instrumental in enabling the market to pass
through this
recent period without any; important
developments,..
.

■

.

May, and loans for carrying
extended, it seems as though

the relatively good behavior of the
market
has helped greatly to dispel the fears of
*

.

of

been

the

.

of that date the market turned definitely on the
defensive,
with price declines in some instances
amounting to % of a point.
While there has been improvement in the
technical position
ithe

difficult

more

.

Rearing

:i1of

Corporation in the Tax System,

(Continued from page 3205)

V

.

Thursday, June 13, 1946j,

who reaffirmed the view that cor.;

porations, especially large ones,
enjoy * special
privileges
and
special services which are attrib-*
mately left corporations with as
little as 15% cents out of each utable to the Federal as well as
dollar of such earnings. At the to the State Governments and for '
same
time,
so-called
normal which they should pay. * These
earnings were subject to rates writers also advanced the argu¬
which reached a peak of 40% in ment that the corporation income
1942. Receipts from direct taxes tax is a tax, not on the stockhold¬
on corporations rose correspond¬
ers, but on a complex organiza¬
ingly from $1.1 billion, or 20% of tion "comprised of a variety of in¬
total Internal Revenue receipts for terested groups," an organization
the fiscal year ending June 30, which has a taxpaying ability dis¬
.

is
incapable of bearing
taxes, the fact remains that until
the public is convinced that this 1940, to $16 billion or 36% of total tinct from the taxpaying ability
of loan exten¬
is so no substantial shift of taxes receipts for fiscal 1945. The taxa¬ of
its
stockholders. The reply
sions, it is not believed that they have taken these
securities out of
the market permanently.
At higher prices many of these holders from the corporation to the indi¬ tion of corporate profits at the usually made to these arguments
Will most likely be sellers.
Thus the digestion of these securities vidual taxpayer is to be expected. rates in effect from 1942 through was that although they might sup- I
In planning for the future, we 1945, although appropriate under port a tax on some corporations,
may have to take place with advancing
prices.
cannot altogether forget the past. wartime
conditions, was clearly they did not support the imposi¬
On the other hand it is indicated that some
institutional buyIt may, therefore, be helpful to re¬ inappropriate
for
reconversion tion of the corporation income tax:
ers have come to the conclusion
that, above certain prices, they
*
call briefly how the corporation and post-reconversion years. Less then applicable to all corporations; ■
are not
immediately interested in acquiring government obliga¬
came
to assume its present im¬ than two months after V-J Day,
tions;
This has resulted in purchases of short-term
Recently, the corporation tax
obligations
began
work on the has been subjected to a heavy
portant role as a source of Fed¬ Congress
by certain non-bank investors, pending the (time
when they beRevenue Bill of 1945, and by early
eral revenue.
'^lieve there will be a better buying
barrage of criticism by various
opportunity...
November it had repealed the
groups which have undertaken to
RECENT PRICE ENHANCEMENT
R. History of Corporation Tax
wartime
excess-profits tax
(as formulate and present detailed
Whether there will be more
well as the capital stock and de¬
advantageous times to buy these
plans for the postwar tax struc¬
Except for a brief period during
-securities is a matter for the future to decide..
clared-value-excess profits taxes) ture. Few of these tax
i
planners
Nevertheless, those the Civil War, corporations were and reduced the
that look for higher prices and those
corporation in¬ undertake to defend a high rate
that see lower prices are still not taxed by the Federal Govern¬
come tax rate from 40 to 38%.
holding to their opinions, and this certainly should make for
corporation inc0me tax on
good ment until 1909 when a 1% excise
trading markets.
v The market made its
As a result of this 1945
recent lows on
grounds other than sheer fiscal :
May 13, tax was imposed' on corporate
when the 2%s due Dec.
15, 1987/72 closed at 102.21 bid; the 2%s profits. This tax, however,' yielded tion, corporations as such have necessity—in other words, they
due Dec. 15, 1959/62 at 101.20
been relieved of all Federal taxes think cuts could first be more ap¬
.bid, and the 2y4s due 1956/59 at 104.20 only $118 million ; and accounted
bid.
The 2%s due Sept.
15, 1967/72 closed at 106.19 bid; the 2%s for less than 5% of total Federal except the corporation income tax, propriately made elsewhere.
Oh
due 1956/58 at 107.20
bid, and the 2s due Dec. 15, 1952/54 at 103.8 receipts during the four years it but this one tax remains at a top the other hand, some of them hold
bid..
v-: ;
rate exactly twice that of 1939. that the retention of this tax at
was in effect.
..

.

.,

.

,

..

;

""

.

,

.

.

lega¬

.

.

'

k

-

■

Moreover, neither

The recovery since these lows

the excise tax

were made has been
gradual
Tather light volume, but none-the-less
enough to wary^rant some attention.

>*<»and

income

on

.

.

.

The 2%s due Dec. 15,1967/72 at 103.28 bid; the
2%s due 1959/62
ht' 102.24 bid, and the 2%s due 1956/59 at 105.7 bid
were more than
;

•;

one-half to

a

point above the closing prices reached on
May 13.
The 2%s due
Sept. 15, 1967/72 at- 107.7 bid; the 2%s due 1956/58
at 108.5 bid, and the 2s due
Dec. 15, 1952/54 at 103.24
bid, likewise
Were at least % of a
point better than the final bid prices registered
the
.

13th of

May.

..

.

.

.

SELLING PRESSURE EASED
• Since the time when these lows, were
made, near the puddle of
f last month, there has been considerable improvement in market con¬
-

_

ditions.

.;.

Some

.

of the

bonds that

have found permanent homes.

were

overhanging the market

Others have been withdrawn due

.

to loan

extensions, which means that there is not the same need for
immediate liquidation as seemed to be a
foregone conclusion at that
time.
Trading in ineligible bonds by the commercial banks for
customers has helped the market action of
these securities.
.

.

.

.

.

.

Federal Reserve Board Chairman
Eccles has indicated that

there will be
v

no

new

is greater control

over

issues of ineligible obligations until there
the buyers of bank
eligible issues.
This
..

| Would require new banking
:vv.'|jbe passed during 1946.>
.

^FLOATING

.

.

,•

legislation, which is not likely to

.

SUPPLY LARGE

On the other hand the
floating supply of bonds held by so-called
speculators is still large and while
temporarily withdrawn from the
fiiarket, will have to be
eventually absorbed by investors.
Insti¬
tutional investors realize that
they are the principal buyers of these
securities and they want to
acquire them at as favorable prices as
possible, which means that they have not yet shown a
tendency'to
accelerate their purchases with
advancing prices.
Commercial
banks continue to lose
deposits, securities and reserves so that their
.

.

.

ability to purchase

.

.

.

government

obligations is being curtailed.
non-bank investors* are not
interested in buying
obligations unless they can first sell the bank
eligible

Also many of the
the restricted
securities

and

,

then

use

the

issues

proceeds

to

purchase

the

.

.

those who

made on May 13
on tne up side or on the
down side.
The direction
market will
eventually go, will be determined not by
want to make all of
their purchases at
.

the lows (which
known only, in
retrospect) but by those investors who believe
the securities that
they are purchasing are
being obtained at
prices that give them a
are

that

satisfactory income.

In
!■

order

to

do

.

.

.

this, buying must be done

and when the market is in
is still in th^.t

a

buying

range,

..

.

=

on

.

a

scale

<

basis

Since the market

buying area, scale buying is
being advised,
trading market such as we have had and
which should
continue, affords watchful followers of the
A good

;
.

.

markets

government securities
excellent opportunity to
acquire securities at favor-

an

able prices.

,

..

.

,

>




such. Both

as

taxes

as

on

were

looked

upon

individual stockhold¬

collected at the source,

Moreover, it is a tax which in the anything like present rates would
"extremely
and
peculiarly
January Budget Mes¬ be
The
sage was
estimated to yield $8 damaging to employment."
billion for fiscal 1947. This figure tax is said to take "vital and
President's

does not,

of course, represent the

amount of

revenue

that, would be

lost to the Federal Government if
had

enormous

funds out of the stream

of business

operations just where
they are most likely to be used
they can most effec-t

and where

corporation tax, since
and in
this relationship was made any reduction in corporation taxes tively be used to increase produc¬
explicit by the exemption of div¬ tends to increase the income and, tion, create more jobs, pay out a
idends
received
from
the
1 % therefore, the taxes of the indi¬ greater total of wages, or reduce
normal tax on individuals. Unlike vidual stockholders. But even if the prices of goods manufactured."
the British income tax, on which we were able to allocate and tax It is asserted,'moreover, that .the
it was presumably modeled,> how¬ all corporate profits to the share¬ tax
affects the
willingness vo£
ever/the 1913 Act did not require holders, whether or not they were management to plan aggressively
the inclusion of the tax so col- distributed,
we
should have to for the future and to engage in
and
venturesome
business
lected-at-the-source in the surtax count on losing at least $1 billion new
net income of the individual tax¬ in the bargain. This is roughly the activity, and that it distorts busi¬
payer. But for this oversight—or minimum worth of the corpora¬ ness judgment as to what is eco¬
deliberate omission—it is possible tion tax to us today
nomically sound in terms of ex¬
that the corporation tax would
penditure,
pricing
and
capital
have remained a withholding tax m. Criticism of Corporation Tax transactions.
as
it did in England, and we
These are serious charges which,
Despite its importance as a
should not have had a corporation source of Federal revenue over in view of the somewhat limited
tax problem today.
the past thirty years, the corpora¬ theoretical support which the tax:
The financial requirements of tion tax has frequently been under commands/ should give us pause. *
the First World War soon brought attack.
During
the
somewhat On the other hand, we have seen
the corporation very much to the stormy passage of the 1909 Act that 110 matter how hard the cor¬
fore as a source of Federal reve¬ through the two Houses of Con¬ poration tax is to defend in prin¬
nue. By 1918, a 121/2% corporation
gress it was contended that the ciple, it has proved even harder ta
income tax rate and high rates of tax, even at a 1% rate, would en¬ dispense with in practice. If this
taxes under both the war profits courage unsound debt financing, has been true in the past when
and the excess-profits taxes had would
force firms to disincor¬ budget requirements were rela¬
raised corporate tax liabilities to porate and would require the use tively low, it is likely to be even
over
$3 billion, nearly 80% of of inquisitorial methods in its col¬ more true today when we are con-i
which
was ' attributable
to
the lection. Later, as rates rose and fronted with the need for financing
profits taxes. The war profits tax the corporation tax became more unprecedented peacetime expen¬
applied only to 1918 profits, but than a mere collection-at-source ditures. Moreover, under present:
the excess-profits tax at somewhat mechanism, the complaint against circumstances, precipitate action
ers

we

no

1913

continued

the

double

taxation

of

dividend

would

•

unwise. Unfortunate¬

ly, there is, perhaps, no tax about
through 1921. The repeal of the income began to be heard.
; Meanwhile, those who favored the incidence and effects of which /
excess-profits
tax^ was accom¬
the tax found it difficult to put we know less. We are not certain
panied by an increase in the cor¬
poration income tax from 10%, to forward convincing arguments in to what extent the repeal or sub-,
which it had been lowered in 1919. its behalf. Both in 1909, when cor¬ stantial reduction of the corpora-,

stronger

.

replaced it in
1913, after the adoption of the
16th Amendment, were thought of
as
taxes on corporate enterprise

reduced

work in the
money markets will bear
watering iuu it will be interesting to see whether
the changes
that have taken
place since the recent lows were
.

the co'rpbration

>

carexui

will be

nor

which

ineligible

:

SCALE BUYING
RECOMMENDED
;'■
These forces that are at

in which the

tax

/
•

to

rates

was

12%%. Meanwhile, the normal
on
individuals had been re¬

porate profits were singled out for
and in 1921 when

tion

seem

income

tax

would

lower-

,

prices, raise wages, or increase div- > '
We do not know, there-:
duced to 8%. Thus, we entered the the corporate rate was raised from idends.
decade
of
the
twenties
what effects such action
firmly 10% to 12%%, the need for reve¬ fore,
committed to the taxation of cor¬ nue and the ease with which it would have on levels of consump-'
tax

porate enterprise, although a par¬
tial offset was given stockholders
in the form of dividend credit for

soecial taxation,

could be collected from

corporate

enterprise appear to have been the
dominant
considerations
behind

of the individual normal the action of Congress. Again, in
1936, it was largely from fear of
Although an effort was made in too sharp a decline in revenue
1936 to repeal the corporation inj that,, the
Senate
opposed
the
come tax
and to replace it with elimination of the corporation in¬
a
tax
on
undistributed
come
tax.
Reference was also
profits
purposes

tax.

«

'i

rr*.

p

f.

tion, saving and investment.

And

in tne absence of such knowledge
we are

unable to weigh

the advantages and disadvantages
of

a

reduction in

income tax

the corporation

against the advantages,
disadvantages of other pos^
revisions in the tax struc¬
ture.
These considerations must
and

sible

•

accurately,
,

[Volume 163
be

in

borne

Number 4498

[THE COMMERCIAL & FINANCIAL CHRONICLE

3233

in consider¬ be possible to administer a law the rate at which undistributed the corporation and individual in¬ the
corporation tax—namely, those
might be done to which made it necessary for the profits are taxed. If the objective come taxes, it has been suggested which would improve the
present
meet the charges currently bein'g Bureau
of
Internal Revenue to of the withholding or undistrib¬ that the impact of the
structure of the tax.
corporation
Time per¬
made against this tax.
follow each dollar of corporate uted profits tax is to make certain tax on small and new businesses mits
only a brief reference to two

ing what

mind

can or

,

principal arguments against profits through:to:;tho individual
the tax are, as we have seen, that' stockholder to make sure that it
.7 it (1)
discourages risky invest¬ was correctly reported on his re¬
ment, (2) distorts business judg¬ turn? Until satisfactory answers
ment
(3) deprives industry of can be found to these questions,
needed funds and (4) imposes an the partnership method cannot be
inequitable form of double taxa¬ regarded as a practical general ap¬
tion. The measures which have proach to
the corporation tax
been proposed to meet some or all problem.
The
second
of these arguments may be classi¬
method,
which
fied into three groups (1) those might be called the capital gains
which would better coordinate the method, would not directly tax un¬
corporation and the individual in¬ distributed earnings, either to the
corporation or to the individual
come taxes (2) those which would
limit the scope of the corporation stockholder. Instead, such earn¬
tax in terms of the number of cor¬ ings would be taxed indirectly at
porations to which it would apply, the time they were realized by the
The

and

(3)

those

which

would

im¬

stockholders

in

the

form

of

in

will

less

tax be might be softened (1) by giving of the more
important proposals^
corporation small closely held corporations the loss offsets and accelerated de-l
than would, have been collected option of
being taxed as partner¬ preciation. The principle of loss-;
from the individual had profits ships and
(2) by exempting new offsets is already recognized in
been freely distributed, it would, business from the
corporation tax the present law, but the sugges¬
of course, be necessary to impose for a
period of, say, five years tion has been made, that instead
a
tax at the highest individual after their commencement.
The of the present two-year carryback
surtax rate.
On the other hand, first of these suggestions would and
carryforward
of. losses,
a
if the objective is merely to dis¬ eliminate the double taxation of
single carryforward of, say, five
courage the retention of earnings corporate
or
six years should be enacted;
no

that

case

from

'

the

not needed

^

in the

profits

busi¬

where

it

the rate should be fairly low.
The problem is that of imposing

would

remove

are

ness,

is

least

in

the

area

defensible

.

and

Such

the

provision. would

a

towards

existing dis¬
crimination between small closely
a rate
high enough to prevent tax held firm^ which differ only in
avoidance
without
placing
too their form of organization. More¬
heavy a penalty upon the rein¬ over, if the partnership option
vestment of corporate profits.
were limited to
v
closely held com¬
Although
this
third
method panies with only one class of stock,
the
administrative
falls short of giving us full inter
problems
to
gration of corporate and indi- which it would give rise do not
vidual income taxes, it avoids the appear to be insuperable. Thus,

that

go far
possibility
fluctuating

removing the
with

concerns

earnings might be taxed
ital

as

well

as

income.

on

cap¬

Moreover,

since it would place the Govern¬
ment in the position of sharing in

potential losses

as

well

as

in po¬

capital gains. The occasion of the
tential gains, longer carryforwards
tax might be the sale, gift or
of losses would substantially re¬
centrate on measures falling into bequest of corporate stock, or the
duce the present-law discrimina¬
mere
declaration by the stock¬
this method of limiting the scope tion
only one of the above groups, but
principal. difficulties : associated
against risk-takingand so
most of them propose the enacts holder of a - gain (with' an ap¬ with either the. capital gains or of the
corporation income
tax partially meet the complaint that
ment of measures falling under propriate adjustment of its basis) the partnership approaches.
This would appear to have much to the / 'corporation 1 t£x discourages
two or more of these headings. Let at any time it suited his con¬ third
method
would
eliminate commend it although many details risky investment.
7
' 7
us consider briefly what has been venience. Such gains would, how¬ double
taxation
and
encourage of the plan remain to be worked
Accelerated depreciation might
proposed and what these proposals ever, bo taxed at rates applicable risk-taking, although to the ex¬ out.
also help in minimizing the impact
to ordinary income rather than at tent "that the
Would accomplish.
corporation would
The second suggestion, despite of the corporation tax on invest¬
the lower rates currently applica¬ still be
subject to tax on its re¬ the apparent stimulus it would ment. By making possible a more
JV, Proposals for Coordination of ble to capital gains.
tained
earnings,
this
method give to new enterprises, is more rapid recovery of capital invested
Corporation and Individual
Although
this
method
also would not entirely. free manage¬ open to criticism.
In the first in new plant and equipment, ac¬
Income Taxes
ment from tax considerations or
would meet the charges against the
place, it would eliminate not only celerated depreciation would re¬
release more of the corporation's double taxation but all taxation on
First, let us consider the pro¬ corporation tax cited above by the
duce the riskiness of the invest¬
posals for the integration or co- simple device of removing the tax, liquid funds for reinvestment. In the retained
and
so
earnings
of
new ment
encourage
capital
it would not achieve the goal of fact, the freer distribution of earn¬ businesses.
;' ordination of individual and cor¬
Thus it raises very outlays that would not otherwise
porate ~ income taxes which, in full integration since the tax on ings would be encouraged.
pointedly the : question of tax be made, There is, however, less
their most extreme form, would the undistributed portion of cor¬
Either the withholding tax or equity.
Secondly, J it would not unanimity among businessmen and
have us give up the idea of taxing porate. income could be indefi¬
the undistributed profits tax ap¬ only benefit those new enterprises accountants concerning the desir¬
corporations as such and continue nitely postponed during the life of proaches
which were hard pressed to find ability of changing
could
be
introduced
present depre¬
the income tax as a tax on indi¬ the stockholder. Even if voluntary
gradually. In fact, several plans the funds with which to finance ciation practice in any drastic
vidual^ alone. Although it might declarations of gains were to be¬ have been suggested under which their expansion, but would also manner. Hence, this proposal ap¬
appear that"* all that would have come the rule, there would almost an ad rem tax on corporations encourage business
undertakings pears to - be one which requires
v to
be done under these proposals certainly be considerable tax post¬ would be retained at
about half of a sort which promised a quick further study. -v
1
^
Would be to repeal the corporation ponement, since years of high un¬ the
present corporate rate, and return. Promoters and speculators
Income tax, the integration of the distributed
VII. Conclusion
corporate
profits would be combined with a tax of would find it profitable to start
two income taxes is not as simple would be likely to coincide with about the same rate on retained such
In conclusion, despite the in^
businesses, enjoy five years
as. that* Repeal of the corporation those of high individual incomes. earnings. These
plans would, of of tax exemption on their accu¬ creasing dependence of the Fed¬
income tax would not automati¬ Moreover, there are the trouble¬ course,
mulated profits, and then sell out eral Government over the past 38
reduce
but
not
fully
cally
bring undistributed cor¬ some questions of (1) the extent eliminate the double tax on div¬ mulated profits, and then sell out, years upon corporate enterprise
porate profits within the compass to which undistributed earnings idend income, and would con¬ taking their profits in the form of as a source of
revenue, corporation
of
the
individual s income tax. are, in fact, reflected in the mar¬ tribute little to the
problem of capital gains. Moreover, ft is doubt¬ tax rates have probably reached
Hence, unless further measures ket prices of the stock, and (2) financing. growing
enterprises ful whether this plan would give their peak levels with further
Were
taken,
corporate
savings the equity of excluding corporate, since undistributed profits would much help to the really new changes likely to reduce rather
would go completely untaxed and but not individual savings from continue to be taxed at
approxi¬ enterprises
which
customarily than increase the revenue from
the opportunities for widespread the income tax base. Finally, the mately the same rate as that
ap¬ have to go through a long incuba¬ this source.
For the foreseeable
fax avoidance would be increased, adoption of the capital gains ap¬ plying to all corporate profits to¬ tion period before they emerge as future the de-emphasis of corpo¬
The inequities inherent in this proach to income tax integration day.
Nevertheless, such partial profitable ventures. The proposed ration taxes appears likely to take
Situation have been recognized, would seem to require some ad¬ coordination of the corporation exemption would of course, not the form of partial coordination of
vance provision for the averaging and
individual income taxes help the corporation which loses the corporation and individual in-^
and a number of methods of meet¬
ing them have been suggested. of individual income if the prob¬ would remove some of the present money during its first five years come taxes, possibly with some
Ideally, if the corporation is noth¬ lem M bunched income is to bo tax deterrents to investment with¬ of its life. But perhaps the most narrowing of the scope of the for¬
prove the structure of the tax it¬
self. Some postwar tax plans con¬

•

that

collected

,

"

„

'

""

~

ing more than a legal fiction, the avoided.: At the present time, out Completely eliminating the serious objection to this plan lies
robjective should be the taxation therefore, the capital gains ap¬ corporation as a source of Federal in the difficulty of defining a new
at the appropriate individual in- proach seems to be more intrigu¬ revenue. Partial coordination business, Must it be a new cor¬
could also be achieved under plans poration, have a new management,
i
•,
coihe tax rates • of the entire in- ing than promising,
; come of the corporation! at the
A third method* of coordinating which would tax corporations at produce a' new product?'! In other
time it is earned. Of the three corporate and individual income present rates and exempt individ¬ words,-what would be the test of
/methods discussed below only one, taxes would be to tax distributed uals from normal tax on dividends newness?
the -partnership method,
attains corporate
profits only in the received.
VI. Proposals for improving the
that goal, although the other two hands of individual stockholders,
V. Proposals for limiting thO scope
structure of the corporation tax
approach it. Under this method, but to continue to tax undistrib¬
of the corporation income tax j.
We come now to the last group
no tax would be imposed on the uted profits in the hands of the
In addition to these proposals for of measures which have been pro¬
corporation,
but
stockholders corporation. This result could be
wold be required to include in accomplished in either one of two the integration or
.coordination of posed to meet current criticism of
their incomes the undistributed, as ways. Under the so-called with¬

tax and almost

mer

certainly wijft
its

structure.

Whether the complete

integration

improvements

:

of these taxes

in

can'

should be

or

ultimately effected will depend ip

,

part
in

on

future revenue needs apd

part

on

the conclusions ultP

mately reached after further study
of both the incidence of the

poration
upon

tax

and

of

its

employment and production.

,

well

the

:

-

the distributed earnings of holding tax approach, the corpora¬
corporation. Total corporate tion would be taxed on its entire
as

All of these Units having been sold, this advertisement appears
as a matter of record only.

profits would, therefore,- be cur¬ income, but the tax on distributed
rently liable to income tax at profits would be treated as a with¬
rates appropriate to the income holding tax which the individual
and exemption status of the in¬ shareholder could credit against
dividual shareholders^

The only his

own

-

58,000 Units

income tax liability. Un¬
v

-profits with respect to which no der the undistributed profits tax
tax would be paid would be those approach, the corporation would
.paid or allocable to exempt indi¬ be taxed only on its retained earn¬
or institutional recipients.
ings and no credit would be given
The partnership approach would, to the stockholders. Both ap¬
therefore, accomplish the com¬ proaches could be made to yield
plete integration ; of - corporation the same results if there were ap¬
and individual income taxes.
By propriate provisions for the carry¬
eliminating the corporation tax, it back and carryforward of div¬

:>

would meet all of the above men¬

idend

credits

under

the

*«

iv

'

'i

.'x'.-v.

*

7

;

.

(

***'

'

i

^

;

"

}

C

...

?

k

,

v

•

v/'c'"

<'

Seaboard Fruit Co., Inc.

viduals

.

,

/{each unit consisting of 1 share Convertible Class A Stock
and V2 share Common

;

Stock)

7-7

,

latter

tioned charges against this tax.
There

are,

difficulties

one.
Moreover, if all corporate
However, two major profits were ultimately distributed
with this approach, in the form of taxable dividends,

especially in its application to the

full integration could be achieved

Price $5.10 per Unit

quasi-public corporation with although there would be some tax
Widely distributed stock owner¬ postponement in the case of indi¬
ship. First, there is the matter of viduals subject to high surtaxes,
small

treating

a

General

Motors

stockholder
or

of
of American

and there

might be

difficulties

to

some

overcome

technical
if

cor¬

Telephone and Telegraph stock as porate rates changed during the
though he were a partner (which period that earnings were re¬
he clearly is not). Can or should tained. On the other hand, to the
such a stockholder be taxed on in¬ extent that some corporate earn¬
come which he has not received,
ings were permanently retained,
which he cannot force out of the full integration would clearly not
corporation, and which may not be possible under this method.
even be reflected in the Rrice of
'The critical question raised by
his stock? Furthermore, would it this method is, of course, that of




HILL, THOMPSON 8cCO., INC.
June 7,1946,

\

.
'

T

7

.

cor-'

effects

f • I

V

THE COMMERCIAL & FINANCIAL CHRONICLE

3234

the

Current Economic Thinking in France
Keynes whose, ideas are now
(Continued from page 3210)
the Petain government, but they arousing great interest among the
took it upon themselves to rein¬ young French economists. To me
force that system.
They never this fad presents something of a
considered the great difference paradox. Lord Keynes' theories
between
England and
France. were formed under the influence
Three-quarters of England's food of an economic crisis, of a period
supplies used to be
imported of general overproduction, rapid¬
>
through the large seaports, and ly declining : prices, and. wide¬
her agriculture has long played spread unemployment. At pres¬
ent there is no unemployment,
! merely a secondary role. France,
i on the contrary, had been cut off prices are at a peak, and produc¬

had

five

for

and

years

a

tion

f Everyone

tional

* knew
that after the
import controls would still

war,

be

for some time to
again there was a
Concept that fitted in well with an
idea popular in prewar France,
necessary

Here

come.

1 namely, that a country ought to
direct its foreign trade along cer•

tain lines rather tharr leave its de^

-

planning.
Also, Lord
Keynes was always in Jfavor of
creating purchasing power in one
form or another, and of course,
this is tempting to the many who
find
this method
of financing
most attractive for countries that
are in financial difficulties.
Nationalization Experiments in

"War Communism" Elusive

-

and

France

Another observation should • be

treasuries ; in

and

banks

na¬

economic

velopment to individual initiative.

:

theRole of

England "

rich and

last and important
trend of ideas pertains to- the ex¬
periments in nationalization today
in France and in England. They
can be considered from two view¬

many.

points:

r:;?•

added.

The

wartime distribution

system, with its creation of what
;

seems

like equality of consumers,
poor, has appealed to
The ration book system

places rich and
There

level.

the same
equal quantities

poor on

are

of

bread,. meat, vegetables for
everybody, even equal quantities
f of coal or wood. This has justly
been called "war communism." In

practice this communism is
/

more

often illusion than reality. Since
in France the rations were insuf¬
ficient for the needs of
everyone

a

family,

tried >to obtain addition¬

al supplies through personal rela¬
tions with farmers and land own¬
ers.

Inasmuch

bonds

Finally,

as

in

France

the

between, the

a

prices,

methods suggestecLto achieve "full

those of raw materials and man¬

employment." I think economists
ought to re-examine the causes

countries.

people, particularly
political par

Many

(a)

these

Among

seems

come

to many people to

practicable,

have be¬
longer Uto¬

no

pian.
All

these

circumstances

viewpoint

is

.

prosperity of
a
country depends upon the perfec¬
tion of its basic equipment; for

mal conditions.

.

modernneeds

more

peacetime
next

ten

ternational, and more technologi¬
cal than economic.

Future Economic Research

.

Now,

as

far

as

I am concerned,

the most useful economic research

industrial, agricultural,

in

differ

and mixed economies.

be

such

from

based upon

Real con¬

must

studies

comparisons with
We

are

all aware

But I believe that even at

isons.

this: time it is not impossible tP
make

an

If the world enjoys a pe¬

(3)
riod

attempt in this- direction.

of

Relatively stable /peace,

problems be not restricted by; a J

j'R R•

\

'-.A1

;

■

^;;

cR,u'.; V V!'..v'

V-

purely national point of view. We/

It has been said that the regula¬

with that of cycles, examined

ternational
way

commerce

the

and

in which the flow of trade

reestablished after World War II.
In this

respect the work done by

the League of Nations during the
last 15 years has- been of great
service.

But if statistics could be

would

work

^how

much

more

thoroughly than has so far been
possible the mechanism that ad¬
justs production in the different
countries
through international
trade. Probably no other problem

has; aroused

so

much dissension

and misunderstanding in the

in*

Keynes

a

L

;

- •

Paradoxical Fad

Two other currents of thinking
are

to

worth mentioning.

the

name

of

the

One relates
late




Lord

economic research projects,
nothing would be more useful
than putting the results of research
in one country at the disposal of
scientists in other countries, and
to find scientifically sound meth¬
ods of comparison. I know well
up

,

ternational

-

thought

comparisons,

this end.

France's New Regulations

Governing Seenrities Ownership
by the occupation; forces.

last

ered.]

n

i

in

French authorities were
convinced that, as a consequence
of the war, it would be necessary

1930, and particularly
United States after 1920.
The

by
;

the
i

with

ance

joint stock

a

incorporated in accord¬
the provisions

of the

law. of June 18, 1941. Its stock¬

control into French economy, and
that the first step was to avoid

holders are the Banque de France,
the principal banks of Paris, and

irresponsible

of

introduce

a

speculation

in

securities.

A second consideration was the
necessity of eliminating tax eva¬
sion to a greater extent than had

the Provinces, and the Paris
Brokers Association (Compagnie
des Agents de Change de Paris).

Its administration is controlled by

the Ministry of Finance which ap¬
proves its by-laws, charges, and
accomplishedriay the institu¬
tion of "Bqrdereaqv de idoupons" rules,; and its records are audited
by the Inspection of Finances* -;
instituted id 1939.LC..^
;
been

II.

the

The C.C.D.V.T. maintains rela¬
tions only with banks* financial

Procedure

By reasojn of the wide, spread
securities, and of
various aspects r of the ^French,
civil law concerning -the rights
and handling of
|ropefcty of mar- .
distribution of

ried:women,:;incbmpetents,:and.
estates, the registered security
procedure of the Anglo Saxon
countries wa^RtO^: suitable. ^ .•
.

■

The problem was to
the
newly recognized

reconcile

require¬

ments of public interest with the

maintenance of facilities for sale
and

transfer,

and

to

eliminate

physical handling of securities.
The"

:

U French

regulations
rest on the idea of applying to
securities the;procedure of in¬
scription in account and of trans¬
fers already applied on a world
wide .scale: tdixasb^..V;;'
new

**7>V

«i

[All securities of the

-

•

i

institutions,

and

whose

brokers

accounts It has accepted. It is not
individual as to the beneficial

ownership of securities deposited.
The

beneficial

owners, as

in the

past, continue to have a direct
relation with the bank, financial
institution or broker chosen by
them.
/ Beneficial
bwners of all se¬
curities deposited; therefore have
their account with one of ? the ac¬

cepted institutions.; It is this In¬
stitution which deposits with the
Caisse all securities of its clients;
Orders

to

sell

transfer

or

are

normally given by the client
banker,, broker, or financial:
institution, which7' executes suck

his

order without making physical de¬

livery, the transaction being com¬
pleted by a transfer on the books
of the C.C.D.V.T. For interest pay¬
ments

and

dividends,

well

as

as

rights,

very simple rules have
been devised of which the work¬

ing is quite satisfactory.

;

As concerns the "good form** of

securities, the Caisse is responsi¬
for determining that all se¬
curities deposits are not subject
to
stop orders. However,: the
Caisse is not bound by subsequent
stop orders. The Original owner!
keeping naturally its legal righta
of trying to determine the fraduble

lent sales.

,

..

,

;

t

The using of securities deposits*
with the C.C.D.V.T. as collateral

J

same com¬

pany, non-callable by lot, have as
a matter of fact equal rights and

of "full employ¬
old. In France the are interchangeable. In order to
February revolution of 1848 pro¬ broaden the field to which the
claimed "the right to work."
In new principle could be applied the
Germany it was National Social- calling of securities by lot has
ism which recently declared that been prohibited, and the possibil¬
concept

ment" is very

company

type bt1 economic

to

'i-

i^

The C.C.D.V.T. is

The

.

«

>

tion of savings

HI. The New Clearing Institution
nomena. It seems to me that the would allow their scientific veri¬
mation, even in the most unex¬ most useful results of research will fication.
The i n s.t i t uvt i o n established,
\
pected places, for example the come from the study of these phe¬
During the coming years I in¬ "Caisse Centrale de Depots et de
Ministry of War or Navy, and an nomena and from comparisons tend to prepare a chart book, at Virements de Titres" (G.C.D.V.T.)
unusual
number
of
calculating among the different countries.
least for the French foreign trade, has as its primarj^purpose the re¬
and tabulating machines has been
(I)
In this respect interna¬ Which will be a convenient means ceiving of deposits of securities
bought by these different minis¬ tional
price movements will play of solving at least part of the for the accounts of brokers and
tries. Unfortunately, the persons
banks, and the- reduction through
an essential part. What will their
problem.
who used them were generally in¬
the institution of'current accounts
direction be? Will it be towards
Employment Data
for securities of physical circula¬
experienced and the -sources -of
prosperity or depression?
Uninformation were less adequate
(4)
Finally, there is a fourth tion thereof. The €. C. D. V. T.
doubedtly, the resumption of pro¬
than before the war. It was im¬
duction in all countries and the subject of greatest importance. At centralizes" the' deposit accounts
possible to undertake any re¬ reduction of freight rates will present many governments are for securities, keeps the accounts
search project of a general na¬ sooner
proclaiming a policy of "full em¬ by depositor, and makes necessary
or later lead to a more or
ture. Only material necessary for less
Governments
are transfers and compensating entries
rapid decline in the general ployment"
blamed for the failure of such in these accounts: In order to aceveryday needs was explored. As movement of
prices.
A compar¬
the one exception in this respect
ative study of this movement of "full employment" to materialize complish its purpose it is inherent
I wish to mention Mr. Sauvy's Inprices and their trends in the dif¬ after World War I. It is appar¬ that the identit^of securities by
stitut de Conjoncture which has ferent countries
numbers would no longer be pos¬
seems indispens¬ ently recognized as a well estab¬
published two or three most in¬ able, not only from a scientific lished economic truth that we are sible* and that all securities of the
teresting studies made according but also from a practical point of now in possession of effective same company would be inter¬
to truly scientific methods.
In view. The„present confusion in the means to prevent a new crisis of changeable; a principle that was
any case, the need for source ma¬ monetary systems of the
principal employment such as was experi¬ established>by the law'of June 18,
terial for economic research is countries makes
this comparison enced by the major countries after 1941.;

couraging symptom.

;

must look for their solution in in-i

Regulation of Savings

sudden need for economic infor¬

I believe that in setting

tne

on

occurred in the 1930's.

and the balance of payments are

.

is an en¬ difficult.

•

yf (Continued from page 3210)
conditions during the seemingly regular, or
obviously ity of extending this provision ia
and how it will irregular acquisition of securities
bonds is presently being considL^

during the next years will be cen? 15 years. Whether it is a question
Government Planning Proclivities tered
around
quite
different of relative prices in different
Have Increased Research Projects fields,
Immediately
after
this countries or the mechanisms by
As a result of these tendencies war, just as after the preceding which the
respective balances of
research centers have been estab¬ war, national economies, almost
payments adjust themselves, opin¬
lished in almost all of our gov¬ unconsciously, were determined ions differ widely, and there is no
ernment agencies.
There was a by international economic phe¬ solid basis of observation that

widespread, and this

studies

years,

at

national than in¬

universal

after

'

It would be most in¬

distribution.

their .worked out on the basis of identi¬
highest level. Economic research cal classifications, and made com¬
occasioned
by such conversion parable for all • countries, such
fulfill

to

lems underlying the
of the World today.

teresting to know how this income
distribution will adjust itself tp

in my opinion than an anlysis of
the fundamental elements of in¬

economic

greatresults,/didhot"examine/
everyday topics; but abased itsf

Unemploy¬
1930, as well as the
validity of the remedies by which

iii ,/•income

spectacular;; changes

nothing would be more important

the

led

ment

the formation and distribution of
incomes.
The war gave rise to

hope for improved

the

on

com-, j

brilliantly guided byR
Mr. Haberler. Here again I believe ,
that the exchange of ideas byR

permanent prob^economic life
I believe this
should be:the "guiding principlef
it is believed we can escape it, for future investigations by eco-d
should there be another period of nomic research centers. I consider '
prolonged price depression such as it essential that the study of these
that

sue

so

output in centralized industries
a«d";on the general feeling that

based

com¬

just as a means to cope with ex¬
ceptional situations, but as a sys¬
tem that can function jander nor-*

carried out

were

other countries.

Another

lucidity by the

so

cessfully by the National Bureau
of Economic Research, concerning

of the difficulties of such compar¬

would be

bined have created a ; favorable
attitude towards planning, > n o t

which

unintentionally made

members of certain

agricultural
example,
electricity,
railroads,
and industrial population Slave
and credit. ■*> On has to let the
remained
extremely close, this
whole
country share
in
these
equality among consumers exists
benefits, and to find the money
more in theory than in fact. Nev¬
to make equipment adequate to
ertheless,
this
equality
ideal
/

were

ties, are interested in them from a
desire to see the general public
benefit from the profits hitherto
collected by the stockholders and
executives of these industries.
(b)

such

particularly might we- cannot ignore the difficulties;
help to prevent threatening social implied by such comparisons. As
immediately after World War L
dangers. Until now there has been far as I am able to do so, I shall
(2) I believe ii would be no no
international i study
of this quite Certainly direct economic
less important for each country
problem* which is not at all iden¬ research: in ■my country towards?
to start projects similar to those
tical
which

clusions

.

with

mission

,

has been

emphasis he put on

"theiright to work"

v "The
righk/sto work" is
merely a slightly-modified formu¬
la for "full employment." I;
" r economists from different coun¬
I personally have^the strongest tries in a small committee
ments and the economic service
would,
of the League of Nations have doubts about this concept. / It is prove extremely useful* and I take y
been and still are rendering out¬ not that I do not*wish to see "full the liberty of suggesting such'
ay
standing services. But I believe employment" realized* or that I am commission for the study of that,
that right now it is of major con¬ an advocate of ^he. pure "laissez question as an item of major
imR.
cern to find a common base that faire" policy in patters of unem¬ portancey:#yR;;: fiyyyyy y;y: ■y;■£. ;
would
allow
a
The National Bureau of EcoR
comparison of ployment. My attitude is scientific
price
movements
in
different and I am very skeptical about the nomic Research, in achieving its,

the other

Planning in International Trade

•

of

very origin in that doc¬

trine.

v-.,.

■

its

that in this organization of ideas
the Bank of International Settle¬

reduced 50%. On ufactured products will obviously
hand, the remedies Lord play a major part.
If it were possible to have peri¬
large peasant class, scattered over Keynes suggested are mainly of
odic meetings — say every six
a monetary and financial nature.
a great number of individual farm
In my opinion it is quite possible months—of a few economists or
units. 7
'
In any case, this administrative that in one or two years it may statisticians in charge of studying
these movements in each country
system had a certain attraction for again be necessary to apply some
of them, but, at least for the time and to compare the results ob-*
many people who -are convinced
tained by each, there would be an
that, if managed better, it could being, the main fascination for his
of
French followers lies in his strong effective : means
preventing
function even in peacetime.
^ •
of
the
serious
mistakes
interventionist attitude and the some
abroad

from

her foodstuffs are supplied by

idea

Thursday, June 13,1946/

does not involve any

special diffi¬
culty, the law providing that the
loan instrument should only recite
the fact that they are deposited:
with the Caisse. The rights and
obligations of the creditor remain,
exactly the same, as if the securi¬
ties had been reduced to

possession.

,

physical
^

■'

;

jt must be: borne in mind that
the owners of securities deposited,
with the central institution retain,

all rights of ownership and do not
become general creditors of the
depository. All rights of owne^
ship continue in full force, being,

Volume 163

THE COMMERCIAL & FINANCIAL

Number 4498

;

to n determinable per¬ duction of physical handling of se¬
centage of the callable deposit of curities, and has greatly expedited
securities of the same issue, of the transfers.' /';i';: J: / •
,; /
v / / /. V;'. // /
same company, held by the Caisse;
The objections originally raised

limited

1

Since physical identification of
particular certificates by number

to

is'abandoned, the

introduction

insofar

based

on

a

new

similar

cash

to

securities' among

of

the French
has
already become? a habit insofar
as stocks are concerned; the dan¬
ger of conversion of securities by

The Caisse,
1. that

the

ip

economic

questions,

come,

.:/7

-2, that, of

because

posited.

its

technical

simplifying operations in
tion

by

with

banks

houses.

role

The operation of the C.C.D.V.T.
is-regulated by General Rules and
Regulations and by a schedule of

connec¬

exchange

stock

and

:-5/

77

Scope of Caisse Operations

VII.

in

securities .transactions

■

charges,

-

■7l/;'

were

of

control

a

the

Caisse

The

operations:

ignored in the new

affording

the actual workings

••

-

deposited with the C.C.D.V.T.
;
The timing of the physical der posita were subjected to
the
i'new Institutions ability to re; • ceive them, and an alternative
.was / provided - that
bearer
/ /shares might be converted into
registered shares. In the period
since April 1942 the Caisse has
•1 included practically all listed
•

,

"shares of, French and Colonial

companies. Unlisted securities
of

:

the

more

important

com-

panies
are : gradually
being
added to the acceptable list.
As of December
1945 there

-

x ;

were

deposited 1,702 particular

companies. .
1943 the an;»ual transfer v tax: on; bearer

; tissues of 1,337

^5, As of February
;

shares of accepted companies,

•

t

-

i

deposited
the; C.C.D.V.T., was increased.
^
■

/

which had not. been

.

with

i

of February 1943 severe
penalities / are provided
for
•v§ non-compliance with orders of
/n deposit, though some delays
have been granted in special
instances. These penalties inelude cancellation of saies, forbidding of sales rendered impossible any transfer of securities, and denied the - right . of
V - vote or of subscription, and
/.
provide for the confiscation.,of
i dividends., and eventually
penal fining of the owner,.;- / •;

As

3.
.

'

,

•

*

•V,
■.-•

' Eliminatloh "of Unregistered
' / ' i} Securities
7 ?..rv " ♦

'

TJnder this type

pf. reform, it is

zation of work

are as

complete

as

posited, w^h the -Caisse.
t

These

wiB

be

two

equally

de¬
,

|

securities
taxed, and al¬

types

of

though securities deposited
the Central' Depository are

with

sub¬
custody fee, the facilities
>nd advantages offered by that
organization
more
than offset
such a fee. This is especially true
jn Case; of foreign holders, since
all transactions in foreign owned
ject to

a

registered
securities
lengthy, and difficult
<

VI.

involve
formalities.

Benefits and Drawbacks

Over -and

beyond

the

general

benefits, the new system has pertoitted' sizable savings through re¬




ered that the
rate is not

'

;

7///

has

identical.

be

been

never

the facts.

Moreover,

in

Until

accordance

his¬

recent

torical times the great bulk of the

savings

money

at

not

was

invested

all,

but was hoarded in the
form of precious metals—a prac¬
tice which has continued in such
countries

China and India

as

even

to the present

day. In the United
States prior to World War I, the

short-term interest
effective instrument

of control. But he

was now

the

confident- that

ly

at all.

The individuals who

money

income moreover

save

savings and capital formation
reversed.

was

That

could

rate

equal¬

long-term
counted

be

and

is, the volume of
savings greatly ex¬
ceeded the volume of new capital
construction.
In
England
and

sions

an

fluctuations

be effective it

to

other advanced countries, current

not

do

themselves; except in rare cases,
demand or construct new plant

equipment. As a rule deci¬
with respeet to the actual
construction of new capital are

must

influence

the

ufacturing concerns. Under pres¬
ent day conditions, whatever may
have been true in the past, the

ness

interest

commonly

is

obligation

a

*

''

-v

•'

——**-•

1
*

».

,v

I.

depends upon

prospective stability of busi¬
conditions. When the situa¬

tion

appears

favorable, virtually

savings
made
are
promptly invested, either directly
by the individual savers or indi¬
rectly through savings
institu¬
tions. But in periods of instability
the hoarding of cash both by in¬
dividuals and by savings institu¬
tions is practiced on an extensive
scale. Thus, in any given time pe¬
riod the amount of the money sav¬
ings and the amount of investment
may diverge sharply.
In the third, stage—the employ¬
all

money

ment of investment

funds in con¬

structing capital goods—the deci¬
sions are usually made by differ¬

who/make

from those

ent people
the
ties.

savings and invest in securi¬
In a highly developed capi¬

decisions are
commonly made by business en¬

talistic society, such

terprisers

who

savings

employ

•

bedded in economic literature and

Lock wood lo Direct

funds

how tenaciously it

"

..

This

saved.

funds

the volume of borrowing by man¬

negligible factor. Many manu¬
facturing corporations have no
bonds,; or even; preferred stock;
outstanding,. and
the
over-all
volume of such ' issues is rapidly
declining. In my judgment, it is
a
reflection on a manufacturing
50,000.
enterprise to do
its
financing
Such are the outstanding char¬
through the medium of fixed in¬
acteristics of the newly instituted
terest or dividend securities when
system, which constitutes an in¬
greater flexibility can be achieved
teresting experiment — already
through the medium of common
justified by its initial success. The
stock. In any case, it is quite pos¬
attainment of its final end will
sible that the day will come when
no
doubt
require
more
time,
there are no bonds or preferred
Presently the technical results ap«* stock
outstanding, at which time
pear
very
encouraging, and it
the influence of the interest rate
would seem probable that the new
would, of course be zero,
organization will in the future
To indicate how deeply this in¬
permit of further progress.
terest rate theory has been em¬

tivities.

has continued

to be held, I must refer in passing
lo the investigation conducted by

Fertilizer Assn.
Maurice H» Lockwood, of West
Springfield,: Mass., now Chairman
of the Board pf Directors of The

a
group at Oxford University in
the late 30's. A questionnaire was

their profit-making

in

In gauging the

ac¬

situation,

not motivated by the
same
considerations which gov¬
ern the decisions of individuals to

they

save

are

money.

influenced

They are

.

Fertilizer

National

will

assume

Association,

executive direction oi

sent to

a

substantial number of

business ' executives,

estimates

to

as

:

the

asking for
degree to

which the volume of their borrow-

tural service all his business life,

first

County Agent, then as
manager of a farmers' cooperative
fruit marketing association and
more recently1 as
Fertilizer Re¬
as

a

search

Manager

States

Farmers'

of the Eastern
Exchange, West

Springfield, Mass., with which he
has been, identified for twenty

;/'"7 / ./- v/ 7 /

years.

,

by

—as

current money

savings have long been greatly in
of the

excess

amounts

demanded

with Government agencies in ad¬

of fertilizer

production and dis¬
tribution, he has worked closely
with Federal, State, and county
agencies in their research and
educational activities, v Mr. Locknumerous

articles

fertilizers and their use, is an
on

the~plant-food situa¬

tion throughout the world. In 1935
he attended

ti^e International Soils

Conference -at
and

pxford, England
has travelled in Europe and

Central America. He is
of

the American

a

member

Association for

the Advancement of Science, the
American Society of Agronomy,

American- Chemical

.

roundabout

three

of

the

capital

pecuniary society
are thus independently motivated,
there never was any reason for
assuming /that the volume
of
money savings,, of investment, and
of

implications of the fact
that money savings, market in¬
vestment, and real capital forma¬
tion
are
independent variables
cannot

of

cussed.

It is enough to note that

they

a

capital formation would

or¬

here-

course

reach

the

to

heart

dis¬

be

of

eco¬

nomic organization in modern so¬

ciety.

•

•

T

-

■

t

.

In these selected illustrations I

;

have

been

endeavoring-to make
The first is that eco¬
nomic theory must be constantly

two points.

revised

in the

light of structural

and- organizational

rapidly
tem.

r

changes

evolving .-economic

Only thus

in

I

mean

it be relevant
By revi¬
thorough over¬

can

a-

hauling,

even scrapping of many
doctrines—not / merely qualifica¬

tions,

refinements, - or extensions
deeply rooted misconceptions.
My second point is that in eco¬
nomic analysis something more is
required than is usually connoted
by the term "inductive approach,'^
or in the assembling and analyz¬
ing of quantitative data. The types
of problem to- whieh I have re¬
ferred- require for their appraisal
of

intimate

knowledge -of

nomic- processes

which

can

continuous

the

a

eco¬

knowledge

be gained only through
close
observation
of

practical

operations of busi¬

ness,-and of what Veblen called,
but never understood, the inter¬
stitial
modern

relationships within
the
enterprise system.
'•'////;"

the replies were unanimously in
the view that changes in the in¬

terest rate- would have

ence./;/:

//•-

-/■•

no

influ¬

•:- '

Savings and Capital Formation
The final illustration with which

I
to

shall tax your patience relates

savings and capital formation.

The classical writers looked upon
money

savings and capital forma¬

tion

identical concepts; indeed,

as

the term
used

"savings'!

was

commonly

simply

to /-connote
the
amount of new capital actually
constructed. ' This" conception
that capital formation and money
savings are identical, was based
on
the .explicit assumption that
when

an

individual

saves

INVESTMENT

BANKERS

money

he spends it for capital goods in¬
stead of for consumption goods.

,

Members New York Stock Exchange and -"y;
Other

Observation,

reveals, however,
that in a complex pecuniary so¬
ciety the process of creating new
capital usually involves three dis¬
tinct stages; (I) the decision by

Leading Exchanges

UNDERWRITERS AND DISTRIBUTORS OF
INVESTMENT SECURITIES
BROKERS OF BONDS,

Private Wires

•

a

sys¬

-

and of service to society.

sion,

•,./.,

stages to

process

formation in

-

The

matter reported

the receivers of money income to
save rather than spend such in¬
Society, come—this I call money saving;
and the International Soil Science .(2) the purchase of securities with;
the. money saved—this I call mar¬
Society.
/
^
•/
- . the

the

a

an

pect for expansion.
Since

had

...

visory Committee which worked

on

the

I heard

and the pros¬

in a given, year a nation
large supply of money sav¬
ings and no domestic flotations of
securities for purposes of new?
capital formation. Nor were there
foreign outlets.
;
which

in 1938 at the British Association

t During the war he was a mem¬
Fertilizer Industry Ad¬

wood, author of

may

eral business outlook

domestic 7 capital expansion.
There have even been cases in

for

for the Advancement of Science—

ber of the

authority

suc¬

cessive eighths from 4 to 6 % ? To
the astonishment of all concerned

of factors which
best be described as the genr

by a combination

togs might be increased by a low¬

| the Association's activities as its ering of the discount rate of, say,
President, at Washington, begin¬ from 4% to
3%%, to %, %, and so
ning July 1st. Mr., Lockwood, a on down the scale.
Similarly, how
graduate
of
the University of much would
they be reduced if
I Connecticut, has been in agricul¬
the rate were increased

.

■

//. v/./7.' ■,/'/:'//

it

/ In the first stage—the

to the vol¬
ume
of manufacturing
are
of made, as we shall see, by a dif¬
3, transfers.
crucial importance in the busi¬ ferent set of Deonle.
Its organization has been de¬
ness
In the second stage—the
cycle
problem, it would
in¬
vised in such a way that the
seem
clear that if manipulation vesting in securities—the primary
standardization toxd themechanic
of. the. long-terra interest rate is consideration is the safety of the

>

2. securities in bearer form

•„

dinarily
with

refrain¬ volume of money savings made by
ing from consumption or the de¬ the American people was ordinar¬
business for want of borrowers. cision to save money—the moti¬ ily quite inadequate for the needs
of American business, men bent
But to no avail. Whatever might vating forces are the desire
to
on
be the facts, the theory could not
expanding plant and equip-,
provide security, to enlarge fu¬
be questioned. In the light of this ture income, lo build an estate, ment—the deficiency being met
experience, it was a bit amusing etc.; and much saving in the in part from foreign borrowings
when Keynes visited this country
commercial
higher income levels results from and in part from
credit
in the early 30's to find him in¬ the simple fact that beyond a cer¬ bank
expansion.
After
forming me that he had discov¬ tain point it is difficult to spend World War I, the balance between

Since

apparent that only two. types of vising them with respect to, the
French securities wilf continue; ta nation's
fertilizer
policies*
Al¬
exist.
;
:-7 though staunchly opposed to Gov¬
V L registered securities, and
• •,
ernment intrusion in the fields
;

variables.

upon.

corporations

.

/

England and % of 1% in the mar¬
ket during the, years 1874
and
1875
brought no expansion of
loans—that,
on
the
contrary,
banking houses were going out of

goods—this I call capital for¬
mation. Each of these stages is in¬
fluenced by particular forces or
considerations, and it may fairly
be said that they are independent

tal

,

•

•

Capital Formation

•

•

.

Bonamy
Price
by
showing
that even a
discount
rate as low as, 1% at the Bank of
airticle

the

interest

concerned possible, reducing together costs,
being of a more speculative nature delays and risks. To giye an idea
were
subjected to the following of the scope of the operations in¬
volved, it should be mentioned
restrictions:
that, as of December 31, 1945, the
i; As of February 1941 all bearer
number of security accounts
T shares of corporations whose
opened was very close to 230,000,
/ securities
were listed oa the
the daily average of the security
Exchange, } all • shares which
entries has been 26,000 for 1945,
were being converted from a
varying from day to day with
/registered ta a bearer form,
Stock
Exchange
activity,
and
and all securities which were
reaching on certain days almost
issued after March 1941, are
the

Interest Rates and

ket investment; and (3) the use
(Continued from page 3212)
evidence afforded by the great de¬ of the funds thus rendered avail¬
pressions of the 90's and the 70's able by business enterprisers who
both in England and the United employ labor and materials in the
States.
I .referred specifically to actual construction of new capi¬

2. Withdrawals

1

as

by

aproved

Finance.

1.'deposits v

nitely too precipitant and sweep¬
ing to scope, the French proceeds

setup, and stocks only

of

has three principal

/Contrary to the methods em¬
ployed in Italy, which were defi¬

ed step by step.

both

Minister

■// .Alt. % Delays. and Penalties

/Bonds

/'• 'v.-;;..

:r:/

♦

.

private corporation

a

of

increase in the power

no

government to control either
or capital of the corpora¬
tions whose
securities are det-

of

income

fiscal

and

system

almost foolproof check on in¬

an

serai-public institu¬
tion, since it acts in the public

real; and finally,
provides, along with

than

apparent

H-v

accordingly, fulfills

of

interest

on

procedure

new

aj dishonest dealer is in fact more

dual role:

a

the

investor

its de-.

pdsitors by book transfers.

new

despite the fear of the

as

psychological effect

ac¬

counts, and the C.C.D.V.T. fulfills
the role of a centralized clearing
institution which registers trans¬
fers

the

of

formula have not proven effectual

system is
principle of accounts

of* securities

the

3235

CHRONICLE

STOCKS, COMMODITIES

Home Office: Atlanta

•

Phone LD-159

/://'/7/:7 7':'7'

:

•

•.'.'

■'

•

■•'/'•'

'

■

7i !

'

■

■

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;''

/-'

77'/'■

'/

///:. ■ /" // '■'':■/ /'

THE COMMERCIAL & FINANCIAL CHRONICLE

'

3235

:''////7;

■•'■'•'■'' '■'/ '■/'/ ; 7''

'//'.•/

7v/777\/77:/77 77v./;';i\
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7 -*":'

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'

■

Thursday, June 13,194£j

.

industries

Prospects for Higher
"

(Continued from page 3200)
earning p o wer.
handsome yield on the basis of demonstrated
tins year's probable dividend dis¬ "Capital" type equities, while in a
bursements. ' On the other hand, basic uptrend, have been sluggish
there are many other issues which and are being supported mainly
are capitalizing this year's earn¬
by an inflationary atmosphere. In
ings on a most extravagant basis. the long run it will be earning
Generally speaking, in the former power, of course, which will de¬
.: • /V;/:'//;:/ 77:;'
category are
"consumer goods" termine prices.

gets tinder way, as it *
eventually will, companies en¬
gaged in the capital or durable
goods industries will soon get into
profitable production, and selected
shares of such companies seem
likely to provide the market with
new and vigorous leadership.
.

Various items have appeared
in

and World Bank
(Eight of

It

should

be

of
course, that there are many stocks
in today's market that- will not
participate in further general im¬
provement in the market.
Such
stocks

I As

executive

director

also

the

Union
:

might be generally classed

discount

Standard & Poor's Stock Price Index

"7':77/

7

1935-39=100
;

5/22/46

1945

..137.7

Agricultural Machinery
Air

'transportation

Apparel
Auto

w~

i

242.9

—,

rj-

294.1

.

Beverages—'.:ss.,.,4.=w■
Alcoholic
244.1
139.8

-}-

/

499.6

161.0

^

■

■

.+
-j+

/;/i53.5;;/:v / 161.4

Accessory

Auto Tires

11,7
18.3
16.0
30.0
0.8
5.2
21.0

+
-}-

7/

150.7.

149.4

-

;

/ 154.2
242.7

186.9

_

7 Change

519.5:

132.9

—/ -.
Au to ■ /-/--/.A-—-—
_ -

.

153.8

:

439.1

.

Aircraft Manufacturing

'A

Close

Avg. Sept.

Soft Drinks

-

Building—

152.0

199.2

+ 31.0

138,3

174.1

+

111.4
121.7

136.9

+ 23.9

150.5

+

23.7

Coal;

1841

221.1

+

20.2

Containers

100.0

113.7

+

13.7

+

44.5

."Cement

,

v7

•

-

Roofing/7/7///////^^
Other

Chemicals

^—......

Cotton

24.4

252.2

118.1
/ 124.5

183.4
122.0

2.0

J—190.8

277.4

it

108.6

+

Electrical Equipment

;

Finance/7/

;

+
+ 55.4

Baking and Milling—
Dairy Products ///
Meat Packing

136.2,

243.7

161.7

197.1

Miscellaneous

106.1

124.3

69.9

76.0

Mining—'

r

_

Canada/A/./..
United States

//£

Lead;. and" Zinc——7/ i

+

17.2

+

8.8

93.0

90.1

3.1

178.3

213.3

103.0

136.3

+ 19.7
+ 32.3

—

Leather

149.7

197.4
152.8

4
4

32.0

121.5
136.2

169.1

+

24.2

85.9

;—.

111.6

+ 30.0

25.8

Machinery
Metal Fabricating
...../J/-.-../.
Mining and Smelting-—.
Office Equipment ....i!.--..—7~—
Papers ————
——

117.2 i

159.6

+

27.6

211.0

323.6

4

53.5

Petroleum

124.81

165.0

+ 32.4

„.■«

—---

4

42.4

Printing and Publication—

196.0

.278.7

Radio

191.8

187.8

2.1

Railroads

137.5

159.4

16.0

Railroad

128.8

149.9

+

16.4

214.3

364.1

+ 23.3

Equipment

——

—

Rayon: and :Silk/i™-7-.-7.-7~,7U7

;

Retail Trade—

<

%

—

Food Chain

'

„

General' Chain/;//--

Shipbuilding
7
—
ShippingShoes

■;

————————«

Sugar '

be expected later, on a wid¬
ening scale.
It is therefore of
paramount importance in meas¬
uring the prospect for any stock
to judge with reasonable accuracy
the size and likely duration of the
present sellers' type of market.
Earmarking Short Term ^

Obviously this, tidal, effect will

.

or less at random*
This is
to say that such equities do
not offer further substantial ap¬

more

not

preciation

248.6
235.7

145.1

244.7

323.9

459.7

110.3

+ 38.2

;4-;
4

139.6

+

68.7

probably

prospetts but rather
equities •— and there
are
others which we

not

mentioned

"long boom" industries, such as
automobiles
and
building — to

the

other

hand,

4-

11.5

4

24.7

mention two of the

123.2

138.4

12.4

tant ones—will most

207.7

305.8

—

167.2

342.6

+103.5

96.7

103.5

4-

110.6
—

pened; and requires no particular
elucidation.
The figures simply
indicate that prices have doubled
the
amusement
and
liquor

in

and have nearly doubled

whereas prices

automobile, automobile acces¬
sory, farm machinery, electrical
equipment, finance, gold mining,
radio and tobacco groups have
for

shown

relatively little change.
Switching

Important question
investor is whether

facing the

aggressive
switching policy should be under¬
taken from those issues which
have advanced

an

substantially into

issues which have not yet

participated

to

any

appreciable

degree in the rise since V-J* Day.
The answer to
very,

that

question lies

great extent in what




:

129.9

167.2

----

The foregoing presents a rather
concise idea as to what has hap¬

groups

of

On

—/-/-7

in the store group,

be

42.0

—-

■

should

stocks

—

26.6

————

—i.'

258.6

happehs from here
price relationships.

:

4" 57.5

7,0

4-17.4
54.7

4-

in labor-

on

more Impor¬
likely remain
in a basic uptrend for a consid¬
erably longer period.
Such in¬
dustries will furnish, in all like¬
lihood, the greatest impetus to the
coming boom, and representative
equities will provide the back

bone of the remainder of
market.

-

Without
in any
it to

attempting to engage
extended discourse, suffice

point out that the labor
situation has reached and passed
the crisis.
It is true that the

Chrysler, contract can be opened
60 days' notice, but the Gen¬

on

eral

Motors

contract

runs

until

May, 1947: Ford until May, 1947;
until Feb. 15, 1947;
coal
probably until April 1, 1947. \ .A
textile strike is likely f6r August,
as is a meat
packing strike but
the shipping strike, which is due
now, can probably be broken, if

Steel

it isn't settled.
Insofar as price
relief is concerned, this is at last

being granted by OPA in more or
less headlong fashion —
meaning
'hat profit
margins will be much

k

was

at

of

end

the

meeting,

Mr.

Beyen
casts 4.98% of

the total votes
in

the

Mr.

Bank.

Beyen
not

was

in

Washin g ton

impaired by

wage

increases

'■

selling prices as a result of rising
production costs had the follow- '
ing to say in part:
•v

slyvania newspapers which have :
effected the same increased price v
recently
are
the
Harrisburg
"Patriot,"
Harrisburg "Evening ;
,

News."

Harrisburg "Telegraph,"
Bulletin," "Greensburg '
and "Greensburg Daily - *

"Latrobe

Review"

Tribune." \

Pennsylvania papers which in- /
their price from four to

creased
five

cents

News

the

are

"Shamokin /

Dispatch" and "Mt. CarmeT

Item."
In

Chicago

"Herald

the

"News"

American"

raised

and

;

daily

:

to five cents ?
J. W. Beyen
early
meetings of while the 7daily/price of the /
the
executive
directors,
being "Times" was increased from three 7
represented by his alternate, Mr. to four cents. "The Herald Ameri- p
can" increased the price of its /
Crena de Iongh.,,
1
■
*
1
At the BW Conference in 1944 Saturday edition from five to ten ?
cents/ The price of the Sunday /
Mr. Beyen, then financial advisor
for

Netherlands

the

of

prices

the

Government,
in

headed his country's delegation

drawing up the BW agreements.
At Savannah this year Mr, Beyen
atended in his capacity as

advisor

to the Netherlands delegation.

^

*

Beyen was born at Utrecht in
1897.
He obtained his LL.D. at

from

edition

four

"Times"

tiie

of

was

in-

creased from five to ten cents and /

the price of the Sunday edition of r
the "Sun" rose from ten to twelve if

cents/-/;/:/!///
In New York, the price of the '
Saturday edition of the "Journal/
American" / was

increased

from

•

University of Utrecht in 1918. five to ten cents last Feb. 2 and /
Following graduation and until the Saturday edition of the ^Post"
the

he

1924

official

an

was

of

the

Netherlands Treasury.
For more
than a year commencing January

underwent

the

same

increase

;

March 30.

:

Although there was no increase
1924, Dr. Beyen was financial ad¬ in the street-sale price of the
visor to Philips Incandescent Lamp "Kansas City Star," weekly rateis
Works.
In 1925 he was made have been raised from 18 to 25
manager of the Amsterdam office
of
the
Javasche Bank, central

monthly rates from 87

cents and

■

•

cents to $1,09,

including morning, 7
bank of the Netherlands East In¬ evening and Sunday papers.
/ /
He

dies.

undertook

in

1926

to

Effective yesterday, the "Den-/
Post" lifted its single copy

reorganize in that area the bank¬

ver

ing institutions furnishing credit

price/ from three to five cents, /
daily and Sunday rates per month:
by carrier from $1 to $1.25, and /
daily rates only per month from ;
75 cents to $1.

to small business men.

Ur.

became

Beyen

director

of

managing

Rotterdamsche

the

Bankvereeniging, one of the five
large deposit banks of the Nether¬
lands, early in 1927.
This posi¬
tion he retained for eight years.
From 1931 to 1935 he was a mem¬

ber: of the Netherlands delegation
to the Bankers Standstill Confer¬
ence

as

in Berlin.

In 1933 he served

member of the Netherlands

a

delegation to the World Economic
and Monetary Conference in Lon¬
don.
The same year he became

The "Salt Lake Tribune" and
"Telegram" monthly rates have
risen from $1.30 to $L50, with the
Sunday editions increased from 12
to 15 cents. The "Salt Lak§ Desert
News," which does not publish;
■

on

Sunday, increased its Saturday

edition from 10' to 15 cents, and
its monthly rate from

"The

$1 to $1.30./

president of the BIS, a position
which he held until January 1940.
Since 1940 Dr. Beyen has been
financial director of Lever Broth¬
the bull
ers
and Unilever and financial
advisor to the Royal Netherlands
Government in London.
Subse¬
quently he became chairman of
the board of the Netherlands For
eign Exchange Control Institute
in London.;

BALTIMORE, MD.—At the
nual

election

of

the

an¬

English
scientist and writer, has been in
J, Dorsey Brown was elected Pres¬
Washington as the guest of the
ident,
reported
the
Baltimore Department of State at Blair-Lee
"Sun" of June 4, which added:
House
during his trip to the
Conducting a brokerage busi¬ United States. Dr. Huxley was in
Washington from May 26 to May
ness under
his own
name,

Brown has been
Baltimore

early 1933.

Stock

a

Mr.

member of the

Exchange since

He served

as a mem¬

ber of the

Governing Committee

from

through 1945 and

1937

as

Crofion Again

Heads
Produce Exchange

Julian

Dr.

29.

Dr.

■

Huxley,

.

Huxley comes to this coun¬

try in his capacity as Executive
Secretary
of
the
Preparatory
Commission
of
UNESCO
(the
United

;

Charles B. Croftop, of Leval &
Co., Inc. was re-elected President
of the New York Produce Ex¬

change for

a

sixth term at the 85th

annual election held June 3rd. Mr.

Croftori is the first President since

founding of the Exchange in
1862 to have; the distinction of
being elected to more than four
terms, Jacques Coe, of Jacques
Coe & Co., was elected
VicePresident, and J. A. MacNair, of
the

Greenbank & Co., was re¬
elected Treasurer.
/

H. J,

Huxley Visits U. S.

Baltimore

Stock Exchange held on June 3,

Post

director of the Handels

Vereeniging Amsterdam and vari¬
ous other companies.
In 1935 he
was made alternate of the presi¬
dent of the Bank for International
Settlements In Basle, the president
at that time being Dr. Trip.
In
1937 Dr. Beyen himself became

Nationg Educational,
Scientific hnd Cultural Organiza¬
than was feared some months
ago. Vice-President
during the 1944-45 tion), said the State Department's
Once production of durable
goods term.
announcement on May 27.
less

June 2

Register,"
Idaho;
Falls, Idaho, has undergone a <
clearly earmarked as potential
Vice-Chairman, board of directors weekly carrier increase from 20/
short-term rather than long-term
Of the Philips Incandescent Lamp
to 25 cents.
/7;/,7/f77 ' 77/77/7/
holdings at this stage of the cycle.
Works and
have

149.8

Tobaccco

Utilities

7:

play an important part in. deter¬
mining market performance of
leading stock groups.
Stocks of
"short
boom"; -industries
will
reach
their
peaks long beofre
stocks of "long boom" industries.
Production capacity during the
war was expanded tremendously
in certain lines, such as household
appliances, radios, textile and ap¬
parel, tire and rubber goods, small
electrical equipment, small ma¬
chine tools, just to mention a few

145.1

:

a

All this 4s symptomatic of what
may

*120.2

Motion Pictures

Woolen'

"

■

;

130.0

—

Textiles.'

to

;

—//

Soap and Vegetable Oil
Steel

those

154.1

161.0

+ 91.0
■v.4-.: 40.0
4- 54.5

345.8

110.1;

i~

—,

50 to $1 Chain—

181.0

170.6

Department Stores

7

forth,

a n

the

constituted

now

that such

1

-

B

that

have reached the millennium and
so

As

nah.

duced

7.0

,

—..X—r—^—Household Products .7-

:./

him at Savan¬

in

available at sharply re¬
prices; that circulation of
second rate magazines has reached
a saturation point; that new and
unfamiliar name radios are going
begging despite price concessions;
that prices for old bouses have
been jacked up to a point where
there are practically no buyers;
that racetrack and prizefight gates
are

the

both

of

which elected

,

post-war industrial boom
+ 22.7 will develop much like the tides,
4 36.2 with areas progressively reaching
+ 21.9 the high water mark. f -

167.0

179.1 i

Gold

„'

The

Foodr^;::'v;ft:;^m^
.

months

events

of

by the Associated Press *v
of increases by
many daily news- '
papers throughout the nation in 1

The
Scranton
(Pa.)
"Times'*
boosted its price yesterday"" from '
since three to four cents.
Other Penn-

was

votes

Already there are reports to the
effect that supplies of merchan¬
dise are becoming more • plentiful
and that several widely used items

+ 45.5

,

Fertilizer

•

25.9

202.8

—

—

-

Drugs and Cosmetics

;

144.0

99-8

Copper

such

advance.

"Journal"

account

South

of

Africa,

stocks to

low:

currently

to

relation

in

Providence

only his native Netherlands,

but

in the latter the
as
representing those companies
^ i;7/ <:: ■:'
"capital goods" equities.
"Con¬ '7,*' 7/7'" / Picture
where present "sellers'" type of
sumer" type equities have experi¬
Brief picture of price changes market will
change to a "buyers'"
enced
very
sizable
price ad¬ which have occurred since the be¬ type in the not-too-distant future.
vances since V-J Day but in most
Certainly there will be a tendency
instances are still conservatively ginning of fast fall is given be¬ for the
market in some
valued

the

of

World Bank Mr. Beyen represents
not

/ columns
as
to increased ?
prices of n e wsp a per s. In the '

an

Executive Director of the Bank

recognized,

and

equities

Series)

J, W. BEYEN

Symptoms
;

a

these

He-elected to the board of man¬

to serve two years were
Martin F. Austin, of W. R. Grace
agers
&

Joseph W. Hart, of H»
Co., and Fred J. Werner,
F. J. Werner & Son. Newly*
Co.,

Hentz &
of

elected to the board of managers
to

serve

two years were

Cecil C.

Boden, of Cargill, Inc., Thomas J.
Stevenson, of T. J. Stevenson &:

and Clifford T, Weihof Smith, Weihman & Co.,

Co., Inc.,
man,

Inc.

John H.

the

office

Blake
of

was

re-elected ta

trustee

of

tha

Gratuity Fund for three years,

-

iVolume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4498

manufactured from this

currency

paper."
These

(Continued from page 3204)

pro-silver bloc to
persuade Congress to levy on the
taxpayers,
manufacturers,
and
aggressive

an

other users of silver for

mestic and foreign.

/

,

''Congress and the people of
this country might do well to re¬
mind themselves that it was this

pro-silver bloc that revealed
that is was not only willing but
determined, even in time of war,
to protect its subsidy regardless
of any adverse effects on the gen¬
eral welfare; that it was this bloc
that forced the Treasury to with¬
same

hold much-needed
industries

war

.after

silver from

for

many

months

entered the war; that,
because of the obstructions of this
we

better today than it was

no

during the late war, especially in
1942.

"It is the duty of Congress and
see to it that the

the pur¬

giving an indefensible
subsidy to silver producers, do¬
of

pose

to be

\V;./,/.> /■

the President to

general welfare,

rather than the
desires of the silver bloc, is served
when silver legislation is under¬
'

"Should Congress pass the pro¬
posed legislation before this pro¬
test

by monetary economists can
be made public, or despite this
protest, then we urge the Presi¬

The

fundamental

Post"

statements in
editorial

of around $1

is¬

that

an

"Denver

the

".

.

a

.

price

Replies

Economists'

to

National

Criticism

Committee

ical of the

common

evasions of the

basic principles involved. But they
are, moreover,

inaccurate for these

'K'K"■//:;'•

/

market

much,

-

1919-1920
since

New

at

York

per

ounce

$1.29
for

the

has

ex¬

only

entire

in

period

1874 at which time it stood

price

for silver is probably
fundamental
reason
why

the

silver-subsidy* advocates
wish

to

rely

.

do

the

free-market

upon

prices for their product.

war

they are entitled to governmentally-fixed subsidy prices for
their
product,
other
producers
same

right. The fact that

silver is used in

some

of

coins

our

does not alter the other fact that
the basic

ally

-

principle is governmentfixed : versus
free-market

prices.

Paper

is

also

used

for

nickel, tin,

money, as are copper,
and zinc.

Tribune,'

'Herald

"Denver

situation

in

these

words

It required many days of hearings
to prepare [and months to pass]
feeble bills

as

byv 66

looking to the modi¬

of the silver program

so

to draft that metal for national

service. It appeared that this gen¬
eration regarded its sons as ex-)

"The attitude of the silver bloc

Vfl„,

the

statement

monetary economists on
Those sentences* read:

is that determined in competitive
world markets,"

(2)

"There is

\

more

validity

or

silver-coin

price of
of silver. But

F.

Carl

the

the

Cushing,
of W.

firm

partner

a

E. Burnet &

appointed

Exchange,

Posner, Andrews, Posner &
Rothschild, President and Chair¬
man of the board, announced. Mr.
Cushing, a member of the Curb
Exchange since 1931, was elected
to fill .the unexpired term of Ed¬
ward
Shean, who recently be¬

Edwin

member of the New York

a

came

Stock

Exchange.

dollar

and

it

doesn't

which

on

not have to

That

also

have

to

ad¬

borrow

the

pay

taxpayers do
interest." .;,.

statement

be

can

made

with equal truth

regarding paper
issued by the government.
If that is an important or relevant
point,
then
the
argument
is

many years

Prior

so

far

as

profit to the

mists

and

is

he

had

of

paper

Fenner & Beane for a year.
Mr.

Cushing graduated from the
of
Michigan
in the

University

1923 following service

class of

World War
ish

monetary

",c

'

at

prospectus

the

of

value

the

Army and later as a Second

Lieutenant in the Field

are

as

a

can

Army arrived

overseas.

•

•••,

for

time

a

Mate

Boatswain's

Chief

as

the

in

temporary

.//:•/"/

per

these

are

local'

special situa¬

or

as

was

Common Stock Offered
A

syndicate headed b.y Living¬

stone

&

Co., and including Crut-

&

tenden

Co., Nelson Douglass &

Co. and Crowell-Weedon & Co., on
June

11

offered

as

a

they

may

accurate translations of the value
a

radio

press,

The proceeds are lo be used to

be able, by present¬

commentators,

pay

for machinery,

tools,

depreciated foreign currency other formulators of public opin¬ ing capital. " /

'

of

offered by
speculation

PRICE—$4

per

share

1

share
'

■.:

V • /:

•.

'•

j>.;

/;,•

:f.

/;•'';.!

1

•

James D. Cleland &
31 Clinton

Gunther,

Inc.

Street, Newark 2, New Jersey
MArket 3-0190




June

14,

1946

*-V» !.

*•*

'• i •'<

Company

*•..

.»

furni¬

and ture, fixtures, etc., and for work¬

S. D. Fuller & Co.

&

speculation

to

tions, perhaps due in part to in¬ ing to members of Congress, the

■■■

Koellner

•>,

counteract^ 493,750 shares of common stock of
$1.29 per fine ounce
and Z dis-is Aviation Maintenance ; Corp.
at
in most, if not all, such instances misleading: / statements
the question arises as to whether tortions of factual data, in so far? par ($4 per share).

110,000 Shares Class A Common Stock

Price $2.65

reserve,

U. S. Coast Guard.

Export Corporation

(Par Value $1.00 Share)

He

also saw service in the recent war

CLASS A COMMON

Pan-American

Artillery

with the A. E. F. after the Ameri¬

nominal

piece

in

1, first with the Brit¬

bought and sold

market

own

approximately five years and with

used to make paper cur¬

should be

his

connected
McKinnon for

been

&

Thomson

with

money

weightiest, in

formation

to

business

price above the open-com¬
petitive market price, than there
would
be in an argument that

the

in

Co.,

Governor of

a

York * Curb

New

at any

in

/

^

New York Curb Exch. /

bought and

rency

■/..

Gushing Governor of

sold at its nominal monetary val¬
uation of $1.29 per fine
ounce, or

These securities
>

nominal

of
no

'/

in the argument of the silver bloc
that silver should be

fcc„„
i

issued

Treasury

pendable but not its silver.' /<//// the
in respect to the public welfare,
where silver is involved, appears

in

(1) "The only price at which the
should purchase silver

in

bis 'Challenge to Freedom' (1943,
p. 173): 'It took two days of hear¬
ings for Congress to prepare a bill
to draft eighteen-year-old boys.

fication

cerned,

Wriston, President
May 10.
University, described

Brown

the

same

Henry

metal/
of

the

on

said.

Mr.

Post"

in¬

called silver 'the slacker

—

is

Cushing has been active for
in the securities#busi^
vances
another argument gener¬ ness. Preceding his association of
ally used by the silver-subsidy ten years with W. E. Burnet & Co.
group.
It is this: "Every silver he headed his own securities firm
dollar the Treasury issues is
a in New York for some five years.

///The

,

date

his

stakes

statements

has been

If

government is concerned, for fiat
"Gold and silver are the two
the free-market price of, say, 35 paper money which would yield
monetary metals which are used cents
dustries in 1942 at 50 cents per
government almost a 100%
per ounce, the government's the
all over the world. More people
ounce.)
,
/
profit per ounce would have been clear profit on the cost of its
use
silver for money than use
$1.29-.35 or .94, instead of 57.89 monetary material — ignoring all
"The silver situation and the
gold. Whatever price the govern¬
cents. The loss to the taxpayers other anti-social costs, just as the
attitude of this silver bloc from ment of
the United States pays
is always the difference between silverites ignore them.
the time we entered the war down
for silver can be paid by coining
It was because the silver-sub¬
the subsidy price and a lower mar¬
to August, 1942, were described the silver
purchased or issuing
sidy crowd, the devaluationists,
ket; price..'
by an editorial writer in the New silver certificates
against it. The
and a great variety of other cur¬
York "Times" of August 4, 1942,
If the editor' of the "Denver
treasury how carries silver on its
rency manipulators Who were at¬
as follows: 'So we arrive at a sit¬
books at $1.29 an ounce. That is Post" and other advocates of govtempting
to
serve / their
own,
uation in which the same Govern¬ its
value for monetary purposes. ernmentally-fixed prices for silver
rather than the general, interests,
ment that urges a patriotic public
are
convinced
that
$1, or 90.3
Every silver dollar the treasury
could not be counted upon to pre¬
not to hoard sugar, not to hoard
issues is a dollar it doesn't have to cents, per ounce tor silver is not
sent facts to the general public in
rubber, not to hoard gasoline, not borrow and on which the
a subsidy price, then the question
taxpay¬
to hoard useful goods of any kind,
arises as to why they do not ad¬ an objective manner that a large
ers do not have to pay interest."
itself hoards a metal which is
vocate
a
free-market price
for group
of monetary economists
Perhaps
the
most
important
needed for planes and shells and
silver. The editor of the "Denver
thing to note in this editorial is
formed the Economists' National
tanks and ships. It is a fantastic
the fact that it did not attempt Post" does not face this issue. /
Committee on Monetary Policy in
situation. It could exist only in a
One may find reports of sev¬
to deal with the following/ two
bloc-dominated Capitol.' Another
eral cases abroad at which silver November, 1933.
sentences, of a fundamental na¬
editorial writer—in the New York
The purpose
of these econo¬
ture, in so far as principle is con¬ is said to sell at prices above our
silver without loss to the

these

of

reputation on its accuracy and is
individually responsible lor what

not

have the

The' silver-subsidy /-advocates
Monetary Policy, in reply to an
bloc, the best that Secretary Mor- editorial of May 13 criticizing the assert over and over that, so long
views expressed by the organiza¬ as the government can make a
genthau could do for most of 1942
was
to -lend Treasury silver to tion in its prepared statement to profit above the subsidy price paid
war industries for non-consump¬
Congress, issued the following for silver, the silver does not cost
the taxpayers anything. For ex¬
tive purposes; that it was not until statement on June 10:
the Green silver bill was passed
ample:
If the subsidy price is
The following is the editorial
71.11 cents per ounce, and the
on July 12,1943—nineteen months
from the "Denver Post," Denver,
world free-market price is, say,
after we entered the war —, that
Colo., May 13, 1946:
35 cents per ounce (which
the Treasury could sell its free
pre-,
"The economists' national com¬ vailed 1939-1941), the silverites
silver to war (and civilian) in¬
dustries
for
consumptive
pur¬ mittee on monetary policy is 'all would contend that the subsidy of
poses; and that even then the sil¬ wet' in its contention that pro¬ 46.11 cents per ounce paid to the
ver bloc was able to force Con¬
posed increases in silver prices silver producers costs the taxpay¬
gress to provide that no Treasury would be an 'indefensible subsidy ers nothing for the reason that
silver should be sold for less than to silver producers.' The fact of the Federal government coins an
71.11 cents per fine ounce, thus the matter
is
that a price of ouhce of silver costing 71.11 cents
protecting the subsidy which the around $1 an' ounce for silver into $1.29 thus making a profit
silver bloc had obtained for itself would not be a subsidy at all, in of 57.89 cents per ounce.
What
by passage of the domestic silver the usual sense. It wouldn't cost these silver-subsidy advocates do
not point out is that had the gov¬
purchase law of July 6, 1939. (The the taxpayers anything.
ernment purchased the silver at
Treasury could have sold its free
,

silver

ceeded

at approximately $1.29 per ounce.
subsidy at all, in the usual A
recognition of this history of the
sense," and that "It wouldn't cost usual
differences
betweenthe
the taxpayers anything" are
typ¬ market and our mint
(coinage)

price is above the freeprice, it is a subsidy. And
Prof. Walter E. Spahr, the Ex¬ any price above the free-market
ecutive
Vice-President
of
the price costs the taxpayers just that
Spahr

.

would not

ounce

If the

Prof.

dollar, and as to whether
ion, the facts which they as sci¬
local prices reflect in any
entists think they have learned.
important way what is, or would None
of them has a personal in¬
be, a world free-market price for terest of a
type that would invite
silver.
'
allegiance to any thing but the
The fact is that,, in so far as this
truth in respect to monetary mat-*
country is concerned, the price ters. Each member who
signs one
of

a

reasons:

dent to veto the bill."

the

silver-subsidy ad¬
vocates should face if they are as
objective, from the point of view
of the public welfare, as they gen¬
erally profess to be.

be

taken.

are

which the

sues

into our

these

,...V-//. ■

v-

.V

*,•'

v/"'

-

*.

•/•

Vermilye Brothers

"

:

.

Thursday, June 13, 1946

CHRONICLE

THE COMMERCIAL & FINANCIAL

3238

The

receives it only adds
purchasing^qwer available
and thereby aggravates the infla¬
tion. Also, to the extent that the

lars than it

Impact of Federal Budget on Ow Economy
!

(Continued from
relatively

were

retrospect
their

as

In

concerned, they did
some good and little harm.
The situation is very different
The

aftermath

and its

war

have

brought us large Federal
budgets. These budgets represent,
among other
things, the test to
which our enemies put us. Their

not

a

mies

decadent
have

as

our

discovered

The

sorrow.

one,

budgets

war

specifically to call your
the itehi of $2.3 bil¬
general
government.
from the
Army and the

for

Aside

were

policy of govern¬
I asked him where

a

own

recommend

expenditures

his

within

With this question his

state.

economy

in

cut

a

how to-cut Federal

the reader the
only do

few

a

simple things the budget could be

Navy, this item finances the ad¬
ministration of the departments

readily reduced, There is a ten¬
dency to gross over-simplification
of a complex problem, and over¬

simplification is the number one
stumbling block to the solution of

.

any

machines you want. To attempt
to have both now-is like trying

is

your cake and eat it.
There is an abundant purchasing
have

Our

There

are

billions

have

a

accounted

total

of

for

by
three items in the budget.
If

$28

just
.

one

or

some

expenditure
be
reduced.
There
are
plenty of proposals
made by one group for the reduc¬
tion of expenditures that affect

,

another group,
us!"

we

accelerator and

peak in public works.

that

will be
unable to sell his product because
fear

little

he

Federal

When
as

they

budgets

were

exist--

their impact upon the econ¬
omy was relatively insignificant.
Now we are dealing with a new
set of budget magnitudes.
These
forced upon us during the
Each of us must think in

war.

new terms if we are to grasp

This
no

advertisement appears

circumstances

to

be

as

a

matter of record only and is under

construed

for sale, or as a solicitation of an

as

an

offering of these securities

offer to buy any such securities.

The offering is made only by

the Prospectus.'

v

100,000 Shares

Industries, Inc.

have to

Common Stock

budgets

small

were

reversed

to

be

we now

face.

I

such

situations

in

am

not arguing

that the budget must be balanced
merely because it seems sounder
for the Government's revenues to

There is
balancing the budget than
expenditures.

more

to

that.

Price $1.00 Per Share

And at this time many more

compelling reasons
balanced budget.
We

the

undersigned

underwriter

as

CHAPIN <S> COMPANY
1321 Penobscot Bldg.

four

1946




big

on

a

a

situa¬

inflation,

we

must

surplus as can pos¬

a

The war has

sibly be achieved.

well.

June 10,

for

not only distorted our economy on
the production side; it has dis¬

torted

Detroit 26, Michigan

goods

dant

in

to

only

end

purchasing

bating inflation. We must balance
the budgel^with-a^surplus if it

§ But

we

:
cannot achieve a surplus

legislativeTand

the

is

essential role. /

merely by, talking,about

at

a

it. Both

executive

premature

The point

earlier

that we
cannot have increased public ser¬
vices at this time without con¬
—

flicting with;fhe;private produc¬
tion, of civilian goods—-is partial
larly frue in the construction ol
public works,,
;T
We may have to take another
look at Army and Navy construc¬
tion

projects, some of which ap¬
have littler relationship to
security .Our • civilian publip
works must also be carefully ex¬

pear to
our

amined.

There

projects such

construction

are

hous¬

as emergency

ing ah^;vaterahs' hospitals ;wbic^i
must go forward.- But we must
take

view

conservative

a

about

starting new projects. We should
plan to have public construction
reach its peak after private co»*
struction begins to decline. HowC

there

ever,

that

we

remains the danger
reach peaks in pr^
public construction at

may

and

vate

about the same time.,
We

should

bear

>'s
mind

in

that

public construction projects cartnot be treated lightly.; Some of
them have a very high priority
and are essential-for

our

future

If the air transport in*
dustry and the automobile indus¬
try are to play their parts in sus1
taining postwar prosperity, ade¬
quate highways and commercial
airport facilities must be avails
progress.

We must work

abel,

out

a

con¬

struction

program that balances
the needs of the future against the

requirements of the present.
We

•

and will achieve? fur¬

can

ther economies in the administra¬
tion of

government. But as I haVe
already 1 indicated, economies hi
administration make only a trivial
contribution ■ to the total result.

expenditure pro¬
which require attention. *'

It is the major
grams

Should

power. The Federal budget has
an essential role to play
in com¬

to play that

made

income

agai^ become abun¬

relation

I

Be

No

Reduction

In Taxes '

inflationary

which Twill

when

were

our

financial structure,

as

People want the goods they
unable to get during the
of

years

chases

can

war.

Their

On the

revenue

clear that there should

et, it is
be

reduction

no

/

side of the budg-i
in

That

taxes.

the policy announced by the
President in his Budget Message
was

in

January. It is more urgent today

that it be carried out than it

be then.

peared

to

reduce

taxes

considered

be

pressures

ap-f

Measures to
should

further

nof

inflationary

until

have disappeared,

be financed from

Government

pays

It is obvious

Congress which sep¬ must be reduced. If we do cut
in pombination could taxes further, it will merely mean
remove .any
prospect of a bal¬ that there will be more purchas^
anced
B^dgetpAs an example, ing ; power bidding for scarce
ures

in the

arately^

or

is

there

proposal

Congress for:
for

pay
G.I.'s, the Opst of which is esti¬

various|y ; at from two to

mated
six

billion

would

jeopardize
anced

plus.

npt; ; only / seriously

bal¬
sur¬

benefit to the vet¬
■

\

;

'

■.

"v;*

IjSudget Surplus v
achieve^;^tirplus, we must

Achieving

a

attack some of the major

expendi¬

-

,1

.

If present tax
and
ture

laws are retained
if efforts to enlarge expend!*
programs

and

adopt

new

resisted, we can expect
to balance the budget in fiscal
1947. But to make its proper con4
ones

are

tribution

against in*

to the fight

flation, the budget should yield £t

the surplus.

inflation and would thus

hollow

erans.

To

a

would rob us

prospect of a budget
It
would/. aggravate

forces of
a

a meas¬

our|£hhnces of

budget, put it

of any

be

dolfar$£ Such

'

the goods.

before

|erminal leave

J

■

However, the budget cannot bp
balanced
merely
because
th^
President and the Director of the
Budget want it balanced.
not be balanced merely
the

Congress wants

It can¬

becausp

it balanced!.

fWe must cut them The Administration can exercisp
where possible!/; Where it is im¬ leadership and can say what ought
sav¬
four possible to cut them, we must re¬ to be done. But in order to get a

pur¬

accumulated
during
years of high wartime
incomes.
To the extent that the Federal
ings

branches

ure

confronted with

damper

have
from

are

argue

tion of actual and potential infla¬
tion. In order to use the budget
as a

Copies of the Prospectus may be obtained

the, national

to

record year
face a serious

a

which

very

arrive

and revised.

be modified

equal its

(Par Value $1.00 Per Share)

equal
We

a

special

that to balance the
offthe Government must
cooperate to rejsist pressures to in¬ budget with a surplus means' oii
The fiscal policies that were de¬ crease
the one hand, that taxes must be
major I expenditure
pro¬
sirable in times of depression and
grams *t>r
to induce
taxation. maintained or raised, and on the
inevitable in times of war have There are nowfofte or more meas¬ other
hand, that
expenditures

icies

as

Lattner

the

significance of our current situa¬
tion. Our concepts of fiscal pol¬
when

Jq/qpmpete in the
scarog^pods. You may

perspective if

some

during the situation

were

ence,

were

is
for

first hundred years of our

group

it may be freed
market for

you recall
that $175 billions of liquid assets

Our Economy

proiscrutiny.
grave danger that

need

will

we

broken

pric§^ceilings

getting

services

construction

There is

apply the brakes. get

Present Budgets Have Impact on

but "Oh, don't cut small,

As an example, I recall
the
together aids to
agriculture and housing, and re¬ energetic head of a business or¬
funds to taxpayers, we have an¬ ganization in a state where a large
other item of $3% billions.
In¬ amount of Federal funds was be¬
ternational finance and social se¬ ing spent. He was a vociferous
i

budget surplus now. The time has
come to
take our foot off the

that

tive proposals which would enor¬
mously increase this amount. -4 >
we

some

group benefiting from a govern¬
mental expenditure proposes that

veterans; of ap¬
proximately $5 billions in fiscal
'47, and there are active legisla¬

Here

when

deed

to

armed

in

and independent agencies of the
Government. It finances the de¬

also the Government's

public

grams

.

<

the

expensive

to take goods off the mar-:
ket at higher prices.
Any pro¬
ducer or merchant who succeeds

,

obligations

between

an

President's recommendations for:
unification of the armed services.

power

has

of

that

sure

luxury.
When
that day comes, there will be no
hesitancy
about
adopting
the

,

.

am

any way af¬
security.
Some
American people wili
to the fact that competi¬

the

tion

this time you cannot

problem. I am not against the
the price is too high. The main
pamphleteers. If anything, I am
bulwark against inflation was and
arguing for more and better ones.
sible, and our war effort as a
Such activity is helpful in mold¬ still is the OPA.
whole was a 'tribute to the dy¬
partments headed by personalities
ing .public, opinion, and i conseSnamics of democracy* ■ > ; .
Wartime Budget Policy a Threat
you hear about and read about.—
quently is of great importance in
of Inflation
the
departments you normally a
Postwar Budgets
democracy. Representative gov¬
think of as composing the govern¬
I believe that our budget policy
Postwar budgets will be several
ernment, after all, does rather
ment of the United States.
Yet
during the war is ih part respon¬
times the magnitude of prewar
precisely what the citizens want
here is only $2.3 billions out of a
sible for c the threat of inflation,
done,
budgets. During each of the four total of
nearly $40 billions. Any
at the present time, although dur¬
What I am trying to say here is
prewar years, the Federal Budget school
boy could readily tell you
ing the war as a nation we did a
that the Budget of the Federal
averaged about $8 billions. Some that
you cannot do much to bal¬
relatively creditable job and in
time ago I publicly stated that
Government is what you make it,
ance the Federal Budget if you
relation to the last war we .did
not what some officials in Wash¬
postwar Federal budgets would be concentrate 90% of
your effort—
magnificent job.
We did raise
approximately $25 billions or over as some do—on this item. In the ington make it. If you want Fed¬
taxes far higher than they had
three times that prewar average.
eral expenditures cut you have
ever been before. We did put per¬
light of these figures, you could
I have been criticized for using
to work at it where it hurts. You
eliminate a large part of the per¬
sonal income taxes on a pay-asthe 25-billion-dollar figure.
But sonnel; in the
have to counteract some of the
departments of the
you-go basis. We did make stren¬
now
the ; developing
forces which work to * increase
evidence Government and
uous
efforts to induce people to
you would ac¬
Federal expenditures.
points to the possibility that this
In short, invest in Government bonds. All
complish little in the direction of
figure is too low rather than too
budget-balancing, like charity, be¬ these things
balancing the budget. While I am
helped, but they were
high.
not enough. Vast amounts of pur¬
pointing out the obvious, I some¬ gins at home.
V Let us take a; look at the Fed¬
The President has said, "We are chasing power did accumulate in
times feel that when it comes to
eral
Budget for fiscal 1947 in
budgets
the
obvious is
often on the way to a balanced budget." the hands of individuals and busi¬
terms of the major, categories of
On behalf of the Administration, nesses.
strangely obscure.
expenditure. We will assume, for
I can assure you that the budget
I
have
always thought and
example, a budget for 1947 of ap¬
will be balanced. The argument is
Major Budget Items Inflexible
argued during the war that we
proximately $40 billions,
not whether or not the budget can should have
It does not take a very wise
had higher
taxes
t
First, expenditures for the Army
we did
and also that we
person to observe how inflexible be balanced. It must be balanced than
and the Navy and war liquidation
and more than
balanced.
The should have had a system of com¬
are the major expenditure items
may amount to as much as $18
in the Federal Budget in relation larger the surplus the better.
pulsory savings. With compulsory
billions.
This compares to one
to the political realities, both na¬
During 16 years of deficits it savings, funds could now be re¬
billion dollars for national de¬
tional and international.
Reduc¬ was quite natural that many peo¬ leased- in an orderly manner as
fense expenditures in the budget
ing Federal expenditure is a tough ple Would despair that the Federal goods become available. As it is,
of 1938. One need only get a "pic¬
job. As Director of the Federal Budget would ever be balanced. we have an abundance; of pur¬
ture of the state of the world from
Budget, I can assure you that very We have talked a lot about a com¬ chasing power accumulated dur-f
his daily newspaper to understand
powerful forces work against you pensatory fiscal policy:' Most of ing the war confronting shortages
why this large expenditure * for from start to finish.
One can that discussion has been devoted of goods at every turn. We have
national defense has not been cut
make a pleasant task of a speech to arguments for and against def¬ an accumulation of approximately
more quickly.
'
about
economy
in general, but icits in times of depression. If we $175 billions of .liquid assets in
Then there is the interest bill of
budgets are not built on generali¬ hold in favor of a budget deficit the hands of in4jviduals and un¬
$5 billions annually for the public ties. They consist of very speci¬ for
About
depression periods, we are ut¬ incorporated businesses.
debt. There are not many propos¬ fic, detailed proposals for expen¬ terly inconsistent if we do not $145 billions of Jju'i'amount is in
als for cutting that.
./t
diture.
It is a rare occasion in¬ hold with equal conviction for a the hands of individuals. All of

large because our war production
beyond anything thought pos¬

was

I

be achieved in this

can

national

wake up

prices.

to

outlay-

program without in

goods in competition with private,
industry it increases pressure on day
At

impression that if obdurate Fed¬

1947,„ budget.

economies

have
increased public services and the
pamphlets on
expenditures. houses, refrigerators and washing

I have read many

eral officials would

the

national; defense

represent more than 40%

fecting

crusade collapsed.

Some of them give

purchases

Government

Federal

,

attention to
lions

their

to

.

I wish

ene¬

would

Federal

ation measures.

is
something
of
a
of a dynamic democracy,

he

you

completed its work on appropri¬

magnitude
measure

case

of

adherent

ment economy.

.

have not already
totaled them, these items come to
$39j/2 billions. I have used figures
roughly to give you" a picture of
what the budget may look like for
fiscal '47 after the Congress has

economy was

now.

to $41/2 billions. Pub¬

works

$2.3 billions. y'v:;v

national

the

on

come

is $1.2 billions dollars,
and the rest of the Government is
lic

in

and

that as far

we can say

impact

curity

3199)

page

smail,

will

to the

out more dol¬

ture programs.

sist all

attempt^ to undertake

expenditures 6n~~programs
can be deferred.

new

that

budget

surplus,

it

that the public take

is

necessary

the pressure

Volume 163

off; the Congress for public

Can Our Inflation Be

:

1 am a realist.
I know how
items get- into the budget. There

is

no

mystery about it.

Congress¬

Stopped?

(Continued from page 3199)
renaline to help his heart action;
another says dose- him with some

powerful stimulant to keep him
on his feet; still another suggests
drugging to improve his complex¬
Since it seems clear that we ion and all agree that the pa¬
should balance the budget, then tient's every action must be con¬
if every, official and
trolled. His folks must not know
every citizen
Will take all the steps within his that i he has cancer; Meanwhile,
capacity toward: this goal we shall no effort is made to cut out the
cancer itself.
certainly achieve; it. -

high

the country boys, the farm helper,
the grocery clerk and the high
school student were asked to help

also know- how projects get
the
budget.
Congressmen

men,

into

cannot ignore the pressure of the
people whom they represent.
*

.

;

*

mistaken attitude

at

I cannot overstress the
impor¬
tance of budget policy at the pres¬

Washington

ent

The ' operations of the
Federal Government are so large
that their impact on the national

of inflation is attributable

economy cannot be ignored. The
budget can promote stability; It
can, in turn, contribute to insta-

fects of inflation, or, solely to
political reasons, is the inescapa¬
ble conclusion. It must be borne
in mind that actual inflation be¬

time.

hility.,,must, balance the
budget with a surplus. Nothing
short of that should content u<«.
That is the policy of the national
Administration, V
'

That this

to

toward the

failure

a

to

problem
either

differentiate

be¬

tween inflation itself and the ef¬

in the spring
in the New
Deal days it was called "refla¬
tion" and that much pride was
gan in this country
of 1932; that early

taken in the

Miles Shce Securifiss

conception, birth and
growth of this Frankenstein mon¬
ster which,
according to OPA
and Eco¬
Bowles,^ now.
threatens to rend and destroy our

Administrator

Offered to the Public

nomic

4 A group of underwriters headed
by <! Wertheim & 'i Company and
Lehman Brothers on Jun e 11 of¬
fered to the public; 23,444 shares
of
4%%
cumulative
preferred
stock of $100 par value and 56.267

shares of

stock, $1
par value, of Miles Shoe Inc. The
preferred stock was priced at $102
a* share,
plus accrued dividends
common

from June 7,
mon, at
*

the

1946 and

$19.50

a

com¬

share.

This offering does not represent

new

both

1

Porter

Stabilizer!

economy.

^

,
*

Inflation Differs from Its Effects
In common conversation the ef¬

fects of

inflation

mistakenly

are

called inflation itself.

To the

ma¬

jority of people inflation is rapid¬
ly soaring commodity prices, the

upward spiralling of wages, the
skyward flight of living costs and
all the other phenomena which
mark the period when the results
of
forces,
long present, make

financing by the company as themselves felt in no uncertain
the preferred and common manner. Bu]ta-thia is not infla¬

shares to be marketed have been

tion.

acquired

tween inflation itself and the ef¬

by, the

underwriters

The line of demarcation be¬

from certain Present stockholders,

fects of inflation can be very def¬
The outstanding capitalization of initely, accurately and specifically
the company
consists of 25,000 drawn. There is just as much dif¬
shares of 4% % Preferred, $100 par ference between the two as there
value, and 300,000 shares of com- is between the process of filling a
baloon with gas and its skyward
•Miles Shoe Inc. operates a diaih flight. That which makes a bal¬
loon go up is the gas with which
oi 125 retail shoe stores. Women's
the bag is filled. The flight of the
shoes constitute the largest por¬ bal oon with
gas and its skyward
tion of sales and account for ap¬ operation
from the process of
filling it with gas.
proximately 50% of consolidated
,

dollar volume.

The company

ported for the fiscal

year

ended

January 31, 1946, consolidated net
sales

of

$15,054,186 and

dated net income of

No

re¬

consoli¬

$730,819.

doubt

seen an

readers have
old-fashioned balloon as¬

hold

with

United

States

more

confused

reader's consideration.

and

than about any other subject- Al¬
most every economist has a dif¬
ferent definition for it. The most
of them

involved and

are

compli¬

difficult;

Here

is

v

a

.

higher or bet¬
"authority in 4 the Western
Hemisphere, had a still shorter
definition;

move

lion

"Inflation

is

too

much money."

Practically

kind of

ac¬

evidence

man,

in

is now strongly in
country; a stu¬

this

Stop penal¬
widow, the orphan
and the insurance policy hold¬
izing the
er.

•

.

Raise taxes by tapping sources

5.

now untouched, such as labor
unions, church revenue enter¬
prises, foundations and funds.'

6.

all

Remove

subsidies

Stop trying to kid the
public. Treat the people with
honesty. Allow prices of food
to
advance- an
equivalent
the

to

amount

subsidies

Return the power over money

7.

to its constitutional

authority,
the United
States/ Repeal all laws giving
a single individual the power
to regulate the value of money

Congress* of

the

and mark the dollar down to a

dime if he

wishes. Take the!

so

politics

and return

people.
8.

\

of the
best practical minds ob-

Appoint

■

very

committee

a

;

tainable for the
purpose
of
.Y\; studying the best methods of
increasing the buying power of
:

;,

,

gold by marking down its price

period of years to its

over a

'

levels.

y historical
There

will

be

stand aghast at

'.

those

these deflationary

from two to three mil¬

evitable result of the kind of in¬
flation which is now rampant in

this, .country?

"frills"

.

-

To neutralize the effects of any

deflationary
may
are

measures

,

3.

Because

these' setruri ies

believed

boom, the wildest speculation and
the most violent orgy of infla¬
tion the world has ever witnessed,
which

this

are

now

Drass Now

until

in

prospect

Incorporated

country

SUNBURY, PA.—J. H. Drass &
Co., 440 Market Street, is now dof
ing business as a corporation. Of¬
world.
ficers are James H. Drass, Presi¬
Reduce the national debt in dent; William J. Betz, Vice-Presi¬
sizable amounts. / It should dent, and William J. Wertz, Sec¬
make red the faces of Treas¬ retary-Treasurer.
Mr. Drass and
ury officials and Congressmen Mr. Betz were partners in the
to talk of merely balancing predecessor firm, with which Mr,
the budget. That's not enough. Wertz was also associated.
/

Cosmo

the ' Commission
has considered v the accuracy or
completeness of the statements in this communication^
'-■% These securities are not offered for sale in any juris¬
dictions Where not qualified to be sold, or where the
dealers ' offering
the / securities
are
not
qualified
or
licensed dealers or brokers.
L
that

;

i

74 Trinity Place,

Telephones HA 2-2400.
June 11,

|

New York 6,

Y.

4

•*■ ;*-'V

4/i'v'Vj4 V.:\-

.v•4,''."!4

rrr'■

;••••.'••

.=

;.y

•.'.Yi'-'i"

,

•'

!"-.■'■•! •'••!',• 5".'4-\Vr:-

'.-V

Share

E. F. GILLESPIE & CO.

:

Teletype 1-376-377-378

New York 5, N. Y,

67 Wall Street
1

Telephones Wiiitehall 4-1670

1940




•

Price $4.00 Per

Troster, Currie & Summers
-

Records, Inc.

COMMON STOCK
v<'; f

for

country.

to be exempt

from
registration, they have not been registered with the Secu¬
rities and Exchange Commission; but such exemption, if
available, does no« indicate that the securities have been
either approved or disapproved by the Commission,
or
are

which

be taken at this time there
the antidotes of the biggest

68,700 Shares

share

' j

who will

But, is it not better to

measures.

is again on: a
sound fiscal basis.; Stop playing
Santa
Claus
to
the
whole

($1.00 Par Value)

Price: $13 per

of
it to the

Federal Reserve system out

Common Stock
>

re¬

moved.

CORPORATION

.

from

food.

employees from the Fedpay-roll.
Eliminate all

Governmental V
the

,

every

tual inflation itself known to the

history of

eral

was no

in:

-

Government expenses to
the "marrow" of the bone. He-

is the expansion of
both, the monetary and

ter

,

Cut

2.

Inflation

whom there

Washington to preserve the
integrity of our currency. A
joint resolution of the Senate
and
House stating that the
honesty and integrity of the
dollar shall be preserved at all
costs, would be the first step
in this direction.

search:

or

to buy and hold,

faith in

in

definition, both
inflation itself and the effects of
inflation, * When
the
two
are

nor

interest rates.

Make U. S. Treasury's attrac¬
tive for the individual investor

dollar both

'

to include in the

definition which is the outgrowth
of twenty years study and re¬

renew

in the desire of those in power

:

cated because the effort is made

volved

steps to

United States

the

definitely
and
distinctly sepa¬
rated, the subject is neither in¬

debt

put into operation some deflation¬
ary factors at this time, than to
await
the
catastrophe
collapse
at home and abroad. There are
that Mr. Bowles talks about, the
many who have lost Confidence
forced deflation which is the in¬
Take

1.

thinking about inflation

muddy

short-term

the

ally increasing

was

is

operation

into long-term bonds at gradu¬

Treasury

until the balloon
bonds,
so-called
assets,
which
fully inflated and ready to go
actually represent Federal defi¬
Sometimes it broke away be¬
cits, money the Government spent
fore the parachute
jumper was which it did not have. This
actual,
ready for it to go up. The present
definite, measurable inflation now
fiscal
inflation in
the
United
amounts to roughly $400 billion.
States may be compared to a bal¬
The possible effects of this infla¬
loon which is beginning to break
tion can
be expressed only in
away for its skyward flight. Carastronomical figures, possibly in¬
tying the analogy further, the
volving the use of from 15 to 20
restraining ropes of the Govern¬
ciphers. The mind staggers in its
ments inflated fiscal balloon are
efforts to comprehend such fig¬
in the hands of a motley crew of
ures. There are those who wish to
helpers, mostly young men with hide
their heads in the sand and
but limited executive experience.
say "It can't happen here" yet for
Doubtless, they are entirely sold
13 years we have been following
on the plan
they are striving so
step by step the pattern laid down
bravely to put over. They are to
by Germany in its inflation of
be honored and complimented on
1914-1923.
their efforts to hold the ropes and
keep the balloon on the ground.
What Congress and Administra¬
Their efforts, however, are wholly
tion Can Do
futile unless someone has enough
Now^—we have seen that the
courage to let sufficient gas out of
OPA cannot do anything to stop
the bag so that it can't go up.
inflation itself, that all it is possi¬
^ This can be done only by the
President of; the United States, ble for it to do is to try to curb and
the Secretary of the Treasury and hold down the effects of inflation.
Luck to it! It is impossible, how¬
the; Congress; This they will not
do if their actions can be based ever, for it to be successful even
in this, unless measures are taken
on
historical precedent. A study
of inflation back to 400 B. C. fails to stop and reduce actual infla¬
can
Congress
to reveal any nation which con¬ tion itself. ? What
and the Administration do? The
sciously and purposely built tip
answer is, plenty, if they had the
so much actual inflation
as
we
guts to do it. While it would re¬
now have in this country, which
ultimately did not "pay the pi¬ quire an article of the same
per." Kings, rulers and political length as this to fully explain
each one of the following meas¬
parties abhor deflation.
ures which should be taken, they
will be presented in brief for the
Definition of Inflation

in

put

few years.

a

up.

There

be

Refund

cension,- the kind which was for¬
credit "bases in excess of the re¬
merly a part of every county fair
of normal business.
and country Fourth of July cele¬ quirements
Dr. Kemmerer, than
bration. It. will be recalled how Thp late

TAYLORCRAFT AVIATION

prices; bank deposits or
money" feverishly bloated
banking system jam-packed 4,

the ropes

either,

20,000 Shares

should

when roughly 38% of the Fed¬
eral debt was paid off within,

"check
a

with

measures

those taken after Worid War 1

and

many

NEW ISSUE

Comparable

pendous national debt; a devalued
or "clipped" dollar; money with
but remote metallic backing; pre¬
cious metal arbitrarily valued at

ser^

vices.

3239

CHRONICLE

THE COMMERCIAL & FINANCIAL

Number! 4498

■*

THE COMMERCIAL & FINANCIAL CHRONICLE

3240

Thursday, June 13, 1946

would have had the full sanction

The Case Bill Veto
|( (Continued from page 3205)
strikes

;to

Such

v.

that

legislation is
now
before the Congress, and I
again make the request that it be
passed. '
,w H. R. 4908 is utterly d:fferent
emergency

my

kind

and

degree.

dealing with a wide va¬
riety of subjects, some of which
are wholly unrelated to the sub¬

of

settling
It

strikes.

preventing

or

strikes

covers

against

private employers.
It is perma¬
nent
legislation, operative even
after the reconversion period is
entirely over. And it applies not
to

few selected ?^d vital indus¬

a

tries but to every dispute, no mat¬

insignificant,

how

ter

if

tre

dis¬

pute affects interstate commerce.

itime, May., 25, 1

•>At, [ the: same

also requested permanent legisla¬

tion leading to the formulation of

long-range

a

policy

labor

Signed tp prevent the
of

such

crises,
work

reduce

dustries.

de-

recurrence

generally to

and

stoppages in all in¬

I further

recommended

immediate

the

Congress of

creation: by the
loint committee to

a

com¬

strike before the mediation board

this

had

to meet have been left untouched

had

an

termine
into

opportunity
it

whether

to

should

de¬

enter

certain case—an action not

a

These sections fail to pro¬

b,y it.
vide

was

satisfactory method of

a

cop¬

,

broad,

ject

failed

have

bill

difficulties which
presumably drafted

ministrative

matters

should

be

studythe entire question and, fully and herewith submit my dustrial rights and perhaps even
grouped as much as possible un¬
Within, six months, to bring in its comments on the various sections; his means of livelihood.
I fear der members of the
Cabinet, who
Section 1. Declares that the ob¬
recommendation for appropriate
that the provisions of Section 3 are in turn
responsible to the
legislation.
I again renew the jectives of the Act are to encour¬ (D) might well result in some em¬
President.
of disputes be¬ ployers provoking strikes in order
recommendation that a joint com¬ age settlement
The proposed Federal mediation
mittee be appointed to make a tween labor and management by to give them the opportunity to
board would have no quasi-judi¬
study of the whole subject of collective bargaining and by con¬ discharge the employe leaders.
cial or quasi-legislative functions.
labor relations, and to suggest ciliation, mediation, and volun¬
To avoid the consequences of
It would be purely an administra¬
permanent long-range legislation. tary arbitration, thereby minimiz¬ Section 3, and to legalize a strike tive
agency.
Surely, functions of
ing industrial strife, strikes and under the bill, a union need only
this kind should be concentrated
Wants

More

Study

for

Per¬

lockouts.

manent Law
The fact that

:

an

we

are

emergency which

consideration,

careful

Upon
have

faced with

come

I

to the conclusion that

the bill will not achieve this high

does justify

unquestionably desirable ob¬
On the contrary, much
of the bill is not only wholly for¬
of permanent legislation without eign to the achievement of that
the
study that such permanent objective, but, in my judgment,
legislation needs.. The bill is ac¬ would actually. defeat it.

the

of

passage

temporary

and

emer¬

jective.

legislation does not, in my
opinion, justify us in the adoption

gency

give early notice of a request for
a conference to start the running
of

the

sixty-day

which strikes
result

period

during

forbidden.

are

The

probably would be a great

rush of premature
ferences.

Sixty

notices for con¬
thereafter

days

in the

Since 1913 there has been with¬
in

the

Department of Labor and

responsible to the Secretary of La¬
bor, a United States Conciliation
Service formed with the very pur¬

difficulties; and if it should be¬
come
law, ; I fear that it may
possibly result in being the only

sion

legislation

.V*-vlVi'.' Ill'-'

not faced

are

of

choosing

legislation
all.

;

,

.

^

It is

and

with

between

this

legislation

no

properly

more

at

choice

a

between this particular bill and

.

r

deci¬

a

a

'

more

adequate and

more

inclusive

{solution of the problem.
;•

The proposed

measure,

| described as a mediation law, is
divided

.

into

two unrelated

parts.

| The first six sections contain pro¬
visions relative to the mediation
| of labor disputes, postponement
| of strikes, and fact-finding. The
[ remaining sections consist of pro-

in

at¬

to

fered, lockouts and strikes affect¬
ing commerce are unlawful until
mediation is concluded or until
60

,

although

Board

days

after

written

a

request

has been made by one of the par¬
ties
is

for

a

earlier.

conference, whichever
An
employer
who
quo by lock¬

changes the status
out

or

have

other action is deemed to

engaged in an unfair labor

practice

within

the

meaning

of

the National Labor Relations Act.

i-visions relative to robbery, extor¬
tion, unauthorized welfare funds,

An

prohibitions against the organiza¬
of
supervisory employees,
union liability in the courts, and
sprovisions establishing criminal
.sanctions,
injunctive
remedies

striking

tion

and
!

suits

against

for

unions

treble

engaging

damages
in sec¬

employee who disturbs the
during this period, by

status quo
certed

or by engaging in a con¬
slow-down of production,

loses his status as

an

employee for

the purposes of the National La¬
bor Relations Act, unless he is

re-employed..

Although Seclion 3 is ostensibly

ondary
boycotts,
jurisdictional designed to insure that the parties
(disputes and certain other actvi- will attempt to reach a peaceful
jties. These are a few of the many settlement, making a strike un¬
[complex problems which must be necessary, I feel that it would, in
studied
the

with

proper

infinite

care

before

are

found

solutions

and

incorporated into permanent
■legislation.
One

of

sidered

whether

vented,

the

in
or

factors

judging

to

this

be

con¬

bill

is

not it would have pre¬

shortened, the strikes
jvhieh have so seriously damaged
pur
economy
these
last
few
or




Federal mediation. Because of the

settle disputes ami¬ serious consequences arising from
cably. The Mediation Board may the proffering of mediation ser¬
proffer its services for the pur¬ vices—namely the outlawing of a
pose of aiding in the settlement strike—mediation is likely to be
of a labor dispute affecting com¬ discouraged and withheld in many
merce.
cases where it might prove most
J
>
If Federal mediation is prof¬ useful.:'1 It is. highly undesirable
tempting

would

we
-

-

,

-•.,'r.

We

Mediation

Federal

in

thirty

days

after

which

must

make

the

public.

in any way

lead to the

think

it

would

development of meth¬

The

by this bill had it been

railroad

strike

would

ods to avoid the operation of this
section. The bill provides that the

have

right to strike is postponed only if

bor,

the

caused

Mediation

Board

all.

been

covered by

And the

not

by

an

time

fore

for conferences and the
a

the bill at

coal, sleel and auto¬
not
insufficient lapes of

proffers its mediation services be-,
the, strike starts.
I foresee
that some unions might choose to

department of la¬

depriving

Secretary of
of his principal
and placing the

the

pute.
Where mediation does not
succeed, the board is required to
recommend voluntary arbitration.

motive strikes were certainly

Federal

tional

maximum

a

of ninety-five

days, with

thirty

days

upon

period
addi¬

an

the

ap¬

proval of the parties.

I Much of the discussion with ref¬
Section

to

erence

3

is

applicable

It is difficult to understand

here,

why the Congress has applied the
fact-finding principle to public
utilities but has omitted it

entirely
industries' of equal im¬

other

in

portance.
The remaining. sections of the
bill have

nothing whatever to do
expressed objectives of

the

with

the bill."

>[V.[[[[:;•[[:- o;v.[V *

"

Section 7.

1

Re-enacts in amend*

ed form the so-called Anti-Rack¬

Act.

eteering
all

hibit

its ' face,

On

does

section

no

than

more

persons,

this
pro¬

whether union

representatives or employes' or
others, from interfering with in¬
terstate commerce by robbery and
extortion.

[

I

am

in full accord with the ob¬

jectives which the Congress here
had in mind.

:

However, it has already been
suggested that some question may
arise

the fact

from

that

Section

7 omits from the original act

provision

that it

construed

so as

ish

in

or

any

the

to be

not

was

to "impair, dimin¬

affect the

manner

rights of bona fide labor organ¬
izations in lawfully carrying out

legitimate objects thereof.",
in ex¬

the

,

press

terms

not make it a

that Section 7 does
felony to strike and

picket peacefully, and to take
other legitimate and peaceful conr
certed action.

Section 8.

crime

for

tribute to

•

,

.

■

Welfare Funds}

on

Provides that it is a

employer to con¬
welfare fund to be ad¬

an
a

ministered

solely by an employe

It is also a crime

representative.

employe ■ representative
to receive the contribution. Wel¬
the

for

fare funds established

by employe

representatives

to

stricted

to

are

cer'.ain

be

specific

re¬
uses.

prohibitions of the section are
enforceable by injunction.
Certain routine exemptions to the

The

made

operation of the section are made.
Welfare funds supported by, em¬
ployers and administered by; un¬
ions are no novelty.
I believe it
inadvisable

is

question

to

remove

such a

as

■

law at the time.

I

extended for

*

ber

strikes.

the

report
The cooling-off period is

encouraging the settle¬ Objects to Ban
of labor disputes • through

duplicate

appoint

commis-

this from the scope
of collective bargaining between
Labor of many
employer and employe. This sec¬
responsibilities
tion does more than require that
conciliation and mediation func¬
there be
joint control of such
tions in an independent body.
funds.
It ' specifically limits the
I In the eyes of Congress and of
uses
to
which the monies de¬
the public the President and the
for the mere fact of mediation to
posited in such funds may be put.
Secretary of Labor would remain
This whole subject needs long
operate so repressively upon one
responsible for the exercise of me¬
of the parties.
Mediation should diation and conciliation functions and careful study. To write into
the permanent law the program
be welcomed by boi.h parties to be
in labor disputes, while, in fact,
for workers' welfare funds with¬
effective.
This provision would
those
func.ions would be
con¬
out a study by any committee of
have just the contrary effect.
ducted by another body not fully
the Congress is, in my opinion, at
responsible to either.
Bill Would not Affect Most Strikes
least improvident. This particular
As far back as Sept. 6, 1945, I
provision was prepared and pre¬
And, under Section 3, even if
said in a message to Congress:
sented because of one of the items
mediation is proffered, and the
"Meanwhile, plans for strengthen¬ of controversy in the recent coal
sixtfy-day period expires without
ing the Department of Labor, and strike.
I feel that this is alto¬
results, nothing happens. No facts
bringing under it functions be¬
are publicly found; no recommen¬
gether too important and too com¬
longing to it, are going forward."
dations are made; no report is is¬
plicated a question to be disposed
The establishment of the proposed
sued.
of hastily.
No matter how important
Federal
mediation
board
is
a
the dispute—whether in ihe steel,
backward step.
Foremen Should Have Right ?
the automotive, or the shipping
to* Unions
Section 5.
Provides that it is
industry, so long as it is not a
Section 9.
This provision de¬
public utility—at the end of the the duty of the mediation board
sixty days, there is the
anti¬ to prevent or minimize interrup¬ prives supervisory employes of
tion of commerce growing out of their status as employes for the
climax of nothing.
The board may purposes of the National Labor
Not one of the major disputes labor disputes.
:
1
which
have
caused
such
great proffer its services upon iis own Relations Act.
public concern during the past motion or upon the request of one i This section would s'.rip from
months would have been affected or more of the parties to the dis¬ supervisory employes the rights

practice/tend to increase the num¬
of

and

The

President

of

pose

.<

'

commission.

such

sion investigates and reports with*

It should be made clear

■

obtain,

President is authorized to

Department of Labor,

employes would feel free to strike ment
—with the sanction of the Con¬
mediation, conciliation, and other
gress.
So, too, there would be good offices. The record of that
tually -a collection-X of
separate
Section 2. Defines certain key
premature demands .for. mediation, service
has
been ; outstanding.
unrelated measure* and is not an terms used in the bill.
long before the possibilities of di¬ During the period of one year
over-all solution of this most im¬
Section 3. Provides that em¬ rect
negotiations
betwen
the from May, 1945, through April,
portant nrob'e^. : V7"'* must not
ployers and employees in indus¬ parties had been exhausted. .[f-fc
1946, it set.led under existing law
make a false start.
We must not
No standard whatever—except
tries
affecting
commerce
shall:
19,930 labor disputes. Included in
approach the problem on a piece¬ exert reasonable efforts to make
only that the dispute should affect this total were 3,152 strikes, al¬
meal basis as this bill does.
and maintain collective bargain¬ commerce—is
provided for de¬ most ten each day. The concilia¬
VV;; It is suggested that the bill ing agreements; give adequate termining whether the Federal tion service has formed one of
merely constitutes^a beginning, notice of proposed changes; pro¬ Mediation Board should proffer
the principal divisions of the Dethat it should be placed upon our vide for the final
adjustment of its services, although a strike can
par.ment of Labor.
statute books, and that we can
grievances or questions regard¬ become illegal only if it occurs
The
bill proposes to transfer
then proceed with the study of
It is apparently
ing the interpretation of agree¬ 'after such offer.
that service and its functions to
additional .legislation. • I
cannot ments; arrange promptly for con¬ left to the board's discretion. This
the newly formed Federal Media¬
agree with' this thesis.* This bill
ferences, with respect to labor dis¬ places a heavy burden "and ex¬
tion Bpard.
To me this is the
is not a permanent solution of our
putes and cooperate with the new traordinary
responsibility upon equivalent of creating a separate

permanent

request the President to create an
emergency
commission, and the

,

of May 25 in
Its range is

proposal

would

it

sure

am

Thus the very

prohibited in the proposed statute. ing with the labor-management
pletely.
'
r
In 1943, in the heat of a con- Although the purpose of the pro¬ disputes which confront the na¬
tion.
troversey over a stoppage of war vision is to eliminate the so-called
Proposed Mediation Board ! J
production in the coal mines, the "quickie" strike, its effect might
Defective
Congress passed the War Labor be to encourage unions to resort
Disputes ;■ Act,more
commonly to such strikes.
Section 4.}; This creates a hew
known
as
the
Smith-Connally
five-man
F ederal
Mediation
May Result in Employers
Act. In his veto message of June
Board.
All mediation and concili¬
Provoking Strikes
25,
1943,
President
Roosevelt
ation functions of the Secretary of
If an employer violates the pro¬
warned
the
Congress that the
Labor and the United States Con¬
strike-vote provisions of Section 8 hibitions of this section, he is ciliation Service are transferred
of the Smith-Connally Act would merely guilty of an unfair labor to the board.
The board, although
not lessen but would promote in¬ practice.
He may only be ordered technically within the Department
dustrial
strife.
That prediction by the National Labor Relations of
Labor, would not be under the
was
fully borne out by subse¬ Board to cease and desist and to control of the Secretary of Labor.
quent events. It is my belief that pay any back pay due.
An em¬
I consider the establishment of
a similar result would follow the
ploye, on the other hand, may this new agency to be inconsistent
suffer a far greater penalty.
approval of this bill.
By with the principles of good admin¬
If a joint committee to investi¬ Section 3 (D), he loses his very
istration.
As I have previously
gate this entire subject were ap¬ status as an employe. That means
stated, it is my opinion that gov¬
pointed immediately and if the that the employer, without offer¬ ernment
today demands reorgani¬
subject were given the priority to ing any further reason, may re¬ zation
along the lines which the
which
it
is
entitled, a - report fuse to reinstate him.
The pen¬
Congress has set forth in the Re¬
covering the entire field could be alties are inequitable. An employ¬
organization Act of 1945, i.e., the
submitted to the Congress within er guilty of a violation can only
organization of government activ¬
this Calendar year.
be ordered (long after the event)
ity into the fewest number of gov¬
to stop his violation and to re¬ ernment
agencies consistent wiih
Comments on Bill
store the status quo.
The em¬ efficiency. Control of purely ad¬
I have analyzed the bill care¬
ploye, however, loses his basic in¬

■

from

fairadmit

I

standpoint,

em-

-• <.?,•>

.

a

minded man would have to

private

against

iployers..:r;v.

Message

Judged solely from this

months.

of the bill.

between the unions' request;

strike.

Each

of

calling of

these

strikes

Fact-Finding Provisions
Section 6.
a

labor

stantial

tial ; public
Vx-iovrl

Provides that where

dispute threatens a sub¬
interruption of an essen¬

ir>

tlna

utility
nnhlip

service, ' the
intprpct

mnv

self-organization and collective
bargaining now guaranteed them
under the National Labor Rela¬
tions Act.
I fear that this section
would increase labor strife, since
I have no doubt that supervisory

of

employes would resort to selfhelp to gain the rights now given
lo them by law.
Tkin

'/»Amnlov

niinoliAn' hue

.

■

,

./•...

•f'-T

.Volume 163
been under
National
The

consideration

Labor

board

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4498
vate employer

Board.

except within the careful restric¬

ing industrial peace.

have

tions laid down by that Act. We
should not invite the return to

netn legislation in

Relations
the

and

courts

pointed out that supervisory em¬
ployees have a dual capacity.
In
dealing with the employees under

them,

they act for management.

'However,
own

with respect to their
hours of work, and

wages*

other terms and conditions of

em¬

ployment, they act for themselves.
,-The full right of supervisory em¬

should be entitled

the practice of issuing injunctions
without notice or hearing and a
revival

of

the

other

tended to discredit

that

abuses

courts and

our

give rise to the widespread pop¬
ular denunciation of "government

by injunction."
•"

:f v

:

ployees to the benefits of collecitive bargaining is one that cannot

by the
Government itself and designed
to
restrain
strikes
against
the

be lightly thrown aside.

Government

Management Entitled to Proper
Protection
On the other

is

entitled

Somewhere
the line

proper

in

the

of

area

between the

agreement

dis¬

parties

drawn with rea¬

be

can

sonable accuracy. There has been
no

this

attempt to draw that line in
section.
*
V;
''

requested

in

cases

where

re¬

fusal to work for the Government

has

condition of na¬
are,
to
my
mind,
an
essential element of
government authority." This au¬
thority, however, should not be
available
to
private
employers
under the vast variety of condi¬
tions contemplated by Section 11
of this present bill.
produced

a

emergency,

.

,

Section 10.

for

Injunctions

tional

hand, management
protection.

to

Provides

violation

of

and would greatly

by the

3241

suits

that

collective

bar¬

gaining contracts affecting com¬
merce
may
be brought in the
,Federal courts; labor organiza¬

Sections

sections

These

12-14.

include

provisions with respect to
making copies of collective bar¬
gaining agreements available to
the

Our problem in

probe for the
strikes

aid in achiev¬

shaping permathis field is to

industrial

and

Securities Salesman 's Corner

of lockouts,

causes

disturb¬

Then, to the extent pos¬
sible, we must eliminate these
causes.
Strikes
against
private
employers cannot be ended by
legislative decree. Men cannot be

By JOHN DUTTON

ances,

forced

in

peacetime democracy
to work for a private employer
under : compulsion.
Therefore,
a

There is

and a wrong way to do everything, even
vacation. This year if you take a vacation do it right. Some
people don't know how to forget their business. They take it home
taking

The main purpose of a vacation is to clear up your thinking as

whole context of

a

dustrial

society.

considered

tionary

in

They

must

the light

of

be

infla¬

of problems of

pressures,

full

employment,
of
economic
security.
Legislation governing industrial
relations

is workable only when
carefully considered against this
broad background.
I am confi¬

dent

that

with

painstaking and
study which will
probe fairly and deeply, Con¬
gress can evolve equitable legis¬
dispassionate

lation

which promises

an

of

era

a

night, they think about it when travelling to and from
work, and they carry it along even when they are far away from
their office supposedly enjoying a rest.
|

well

modern in¬

way

with them at

strikes must be considered in the
our

right

a

as

invigorating

body.

your

If going to

office has become

your

monotonous

chore, if calling upon new prospects is an effort, if
luncheon date with a client has lost its appeal, then it is
time for a change., In the sports world they call this sort of thing

making

a

"going stale."

Salesmen go stale just like any trained athlete. When
champion ball player goes into a batting slump a smart manager's
remedy is to take him out, and put him on the bench for a while.
So if you are going away this year leave your cares behind. For¬
get about financial news, don't talk shop, try and have a few weeks
of complete change from your regular routine. It is change of scen¬
ery, of environment, of conversation and of thinking, that will give
you the maximum benefit in both mental and physical rejuvenation.
Then when you return to your job it will look bright "and new to
you and that's the way your work should appear to you at all times.
A man's work should be the most interesting thing that he can do.
This is no argument for taking things easy just because business
has been good during the past months. In fact, the way it looks from
here, this is one summer when every salesman and securities dealer
a

and with respect to
peaceful industrial relations,
tions are deemed to be bound by furnishing available data which
Affirmative Policy Called For
should be in constant touch with his customers and alert as to what
the acts of duly authorized agents may aid in the settlement of labor
disputes. They are unobjection¬
We
accomplish
nothing
by is going on. With strikes and reconversion problems, also new deals
acting within the scope of their
able.
striking at labor here and at breaking every day and elections coming in the fall, no one who
authority and may sue or be sued
Sees Need of Further Study
as a separate
management there.
Affirmative owns securities can afford to neglect them. Good judgment, timing
entity; money judg¬
ments against a labor organiza¬
The passage of H. R. 4908 con¬ policy is called for, and a Con¬ and sound analysis of underlying conditions, as well as the proper
tion are made enforceable but firms the need for a careful study gressional committee such as I appraisal of individual securities, can only be done when your mind
'only against assets of the union; of labor-management problems have suggested is the best means is clear and you feel physically fit.
employee who strikes or oth¬ with

any

erwise

interferes

formance of

the

with

per¬

collective bargain¬

a

ing contract in violation of the
contract without approval of the
labor

organization

party

to

the

contract loses his status as an em¬

ployee

the

for

purposes

the

of

National Labor Relations Act un¬

less he is re-employed.
:
I am hi accord with the prin¬

ciple that it is fair and right to
a labor union responsible for

hold
a

public

of its

violation

than

farther

goes much
This section,

section,

Norris

La

-

that.

with

conjunction

in

taken
next

contract. How¬

this legislation

ever,

the

largely repeals the
Guardia
Act
and

view

a

toward

remedies, -i It

long-range
the

a

formulating it.
be no emphasis
considerations
of

upon

dangers of attempting to
permanent labor legislation with¬ whether a bill is "anti-labor" or
out painstaking and exhaustive "pro-labor." Where excesses have
developed on the part of labor
consideration.
leaders or management; such ex¬
H. R. 4908 strikesat symptoms
cesses should be corrected—not iii
and ignores underlying causes. As
order to injure either party—but
I have noted, not a single one of
to bring about as great an equal¬
the recent major strikes would
have been affected by this bill ity as possible between the bar¬
gaining positions of labor and
had it been law.
management.
Neither should be
As L said to the Congress on
permitted to become too powerful
May 25, we should immediately
as against the public interest as
have temporary legislation, deal¬
a whole.
ing with the urgencies of the
Equality for both and vigilance
present, so that strikes against for
the; public
welfare—these
the Government which vitally af¬
should be the watchwords of fu¬
fect the public welfare can be
ture legislation.
♦
' "
>
halted.
This is necessary in the
The bill which I am returning
to you does not

meet these stand¬

ards.
»1

■

*

iu.

,

,

4

>•

A

should all be considered.

based

on

com¬

realization

a

>

sanctions,,
injunctive
provisions for treble

criminal

remedies and

Although the section is
entitled
"Secondary
Boycotts,?
the scope of the section in fact
extends far beyond such matters.
damages.

;

enactment would pro¬
remedies that might result
its

While
vide

elimination of certain evils,

in the
such
the
(also

as

improper

application of

secondary boycott, it would
make those remedies avail¬

recognized legitimate

able against

activities of organized labor,
,

.

That there are some

abuses in

gainsay.

deplore the strike or boycott
ing out of a jurisdictional
pute as one

such abuses. A way must be
to "

found

prevent $ the ;; jurisdictional
It cannot be justified un¬

strike.

any
circumstances.
I ; am
convinced, however, that the anti¬
trust laws, the objectives of which
are
the
elimination
of unfair

der

not

practices and the pro¬
free competition, are
designed to solve the abuses
of

and

labor

restrain competition.

■

-

>

ment

difficulties, therefore, is to

found

be

alone

not

in well-con¬

sidered

legislation
dealing
di¬
rectly with industrial relations,
but also in a comprehensive legis¬
lative program designed to re¬
move

some

of

the

of

causes

the

insecurity felt by many workers
employers,

and

Section 11 (c) rescinds the Nor¬

Guardia

organizations.
tion is

a

Act with respect

against labor

The labor injunc¬

'weapon to which no pri¬




with

the

York

New

office, 63
Commander Severin,

the

Wall Street.

the U. S. 'Naval
Academy, class of 1923, resigned
graduate

a

his

of

commission

1924

in

enter

to

business, and was recalled to ac¬
tive duty in September, 1941, and
served until May of this year. , :
sociated

the

with

was

First

San

Francisco

from

and

1940

New York

Stock

Ex¬

change.
Mr. Thomas will be'in
charge of the firm's newly opened
Memphis office in the Sterick

Building.;

;

Hanlon Adds Field
(Special

Boston

Corporation in its New England,
Philadelphia and " San Francisco
offices.
The following two years
he was with Dean Witter & Co.
in

bers of the

as¬

of

%'•/'

Recommendations

Street

had

in

his

private

The

to

Financial

Staff

to

Chhonicle)

BOSTON, MASS.—Paul J. Field
has

become

Office

Square,

Boston
Field

Stock

was

Gor¬

with

connected

Hanlon

B.

don

&

Co., 10 Post
members of the
Exchange.
Mr.

formerly/,with Draper,

Sears & ChV

-dnd its predecessors.

Ruble With Harris, Upham
(Special

to

The

Financial

Chronicle)

,

stoutish

cal

services

for

moderate

they

can

price
laws

families
income

afford,

a

of

at

in

and

effective

..

,<v

U

stabilization
These

r\\-

te'-f'*

f

$0't:

J*,

flowing sideburns,
caption "I sold
too soon." The other was a cring¬
ing fellow with tears in his eyes,
and had under him the legend, "I
didn't

sell."
had

Whenever
an

intricate

the

'jrnr

»

1

Vf

'

(

' >1

t V ,'n

i

of

Harris, Upham & Co., 523 West
Street. He was previously

Sixth

with E. F. Hutton &. Company,

h"V '■

'

\

f

,,,

.

.

h

on

request

■

i\F. *

;Vr;
-y-jft
V'"'"' 'i

f

j.r

>

r

_

fey

';'4

f

y.
.

•

55 LIBERTY STREET, NEW YORK 5. N. Y.

mer¬

problem

to solve he studied both pictures
and often

came

to the conclusion

tained from Martin Judge, Jr.

American Fruit Growers Inc., Com.

Butler, Herrick & Marshall, 30
Broad

Street,

New

York

City,

members of the New York Stock

Exchange, will admit J. Edwin
measures would remove some of
Taylor to partnership in the firm
the "majorv Causes' of "insecurity On "July "1st. ' •-/
• -

Arden Farms Co., Pfd. & Com.

;
,

•;

Butler Herrick to Admit

_

j:

*U';v7/. ;-/t.y.

' v

«

■

\

'

r

Herrick,Waddell & Co., Inc.
H

y.

Fullerton Oil Co., Com.

y?

Wkgenseller 8 Durst, Inc.
■.

y

-

/ Members Los Angeles Stock Exchange
626

.

Ruble has been added to the staff

.C-J; 0

t:.*• *Mr'*
,

with

and under him the

low

fair minimum

form.

n,

costs

and the continuance of the
control

4<

'

y LOS ANGELES, CAL.—Carl B.

office

two large photographs on opposite
walls. One was of a jolly fellow,

chant

Renews Social Security

-

wage,

to anti-trust actions

in

,

Stand

ris-La

associated

become

firm

MEMPHIS, TENN. — J. Nick
Thomas, Jr., formerly a partner
Thomas, which has
been dissolved, is now associated
with J. C. Bradford & Co., mem¬

in Winston &

Common Stock

and

Wants Anti-Injunction Act to

J. C, Bradford & Go.

Schoellkopf, Hutton & Pomeroy,
Inc., announce that Hugh
Severin, Commander U. S. N. R.,
has

before.

Mary Lee Candies, Inc.

to unemployment, health and medi¬

designed

fiddle and raring

a

J. Nick Thomas With

Hugh Severin Joins
Schoellkopf, Hutton

that labor is now rapidly

During the past ten months I that "If the other fellow expects
pointed out in this section.
■
In this regard, however, I do have urged the Congress to enact to make a
profit, it's all right with
not need to emphasize the neces¬ such a program. Among the pro¬ me—I've got mine." Copies of this
sity of applying the anti-trust posals which I have recommend¬ fable, illustrated with sketches of
laws to combinations between em¬ ed are adequate insurance against the two gentlemen, may be ob¬
ployers

to you than ever

"coming to the time he re-entered service
age" and that it should take its he was with William R. Staats Co.,
place before the bar of public also in San Francisco.
dustrial strife is a symptom of
y
opinion on an equality with man¬
basic
economic
maladjustments.
agement.
/'
'
We cannot attribute work stop¬
C. P. Nelson & Co.
It is always with reluctance that
pages to any one factor.
As we
BOSTON, MASS.—C. P. Nelson
move from war
to peace, severe I return a bill to the Congress
without my approval. I feel, how¬ & Co., lb Post Office Square, is
strains are placed upon our eco¬
engaging in the securities busi¬
nomic system.
Labor and man¬ ever, that I would not be properly
ness,":
agement alike are seeking secu¬ discharging the duties of my of¬
rity,
The combination of rising fice if I were to approve H, R.
prices, scarcity of commodities, 4908,
lowered standards of living, and
altered tax programs today cre¬
lis You Is, or Is You.Isn't
ate fears which are present at the
t /ic* *
S'f- / 7
'
"r
'
According to Martin Judge, Jr.
conference table to "disturb the
of Lauterwasser & Co., 145 Sutter
orderly process of collective bar¬
Street, San Francisco, in the early
gaining.
days of San Francisco a very suc¬
A
solution
of
labor-manage¬
Prospectus
cessful merchant on Montgomery

business

tection

it will look better

1

/v

I
aris¬
dis-r
of the most serious of

this field, no one can

back to your work feeling fit as

From 1924 to 1937 he

prehensive study of this problem
be

you come

to go, you have done a good job on your vacation. If you don't you
have wasted your time and some money, too. So leave your office
behind you; it will be there when you come back and if you do this

,

Many procedures have been
suggested from time to time by
students of the problem.
They

should

If

v

should

There

draft placed

long-established Con¬
gressional policy.
'
midst of the,extraordinary pres¬
I am sure that, without repeal¬
sures of reconversion
and infla¬
ing >the Norris-La Guardia Act,
tion.
I have asked the Congress
changing
this
long-established
for such legislation. The precise
Congressional policy, or imperil¬
form which such emergency legis¬
ing the principles of the National
lation is to take is, of course, for
Labor Relations Act, a sound and
the Congress to decide. But if the
effective means of enforcing la¬
form adopted is inadequate, the
bor's responsibility c^p be found.
Section 11 i This provision sub¬ responsibility must also rest with
the Congress.
' y
jects various * union activities to
It must be remembered that in¬
the anti-trust laws with all their
changes

of
''

demonstrates

SO. SPRING ST.

TRINITY 3761

LOS ANGELES 14

Teletype: LA 68

Quotations and Information

on

all California Sacttrffta*

•

.v

"

THE COMMERCIAL & FINANCIAL CHRONICLE

3242

typewriter such

Road to Better Labor Relations
(Continued from page 3203)
get out of the trap which it built

'

represent "the people," and count

♦

and most of the

man

has.... ft.-

as

any

publicity dash,,

>j?'.ttv'-'-tf

good public relations
men,
who knoww their business
and who know that part of their
business is knowing the intimate

wealth, that this

a

flair for

the unusual,

?a

of humor, a knack of get4
tmg spice and color into words.

sense

.

There

are

their members a majority wealth is a constant pool which is
for itself—-^herein it fixes wage of the gainfully employed. Any¬ inexhaustible and does not heed
and that if all details and problems of the comr
rates with no regard for economic one who has a speaking acquain¬ replenishment,
pany they works for.: More and
truth and justice—until it i§ pre¬ tance with statistics knows that available money could once be di¬
vided on a share-and-share-alike more, it seems to me, the develop¬
pared to stand its ground and re¬ the number of members in the
ment of good labor relations re¬
fuse to grant some unreasonable unions today is far less than is basis everyone would be wealthy
lies on the insistency by manage¬
and robber-like demand. To put claimed, that the CIO and AFL and happy from then on, with no
ment that the published message
this in still blunter words, strikes together don't have more than one having to work.
be good, productive, and progres¬
We are blind if we do not real¬
which are not supported by reason about one-firth of all workers to
sive.
The mechanics of dressing
and justice should be broken and speak for, and that even the union ize that this is typical of the be¬
members are not unified in their liefs of millions of our citizens. up the message ih nice typography
defeated.
\
mean little if the -message itself is
These are ugly words. But they political beliefs or economic prin¬ Remember the appeal of "Every
Man a King," of the Townsend dry, dull, obtuse,' or confusing.
ciples.
are true words, and there is no
FF ..;F':VF
;.F
other way to meet the rapacious,
Gradually, little by little, peo¬ Plan, of the Ham-and-Egg plan, of
Getting Management's Policy
vicioiK moves of some of our un¬ ple find these things out.
The Thirty Dollars Every Thursday,
;
Across t* Employees
ions and their leaders. Up to this windy claims are exposed.
The and if you want to go back
Now—in getting management's
threats
fall
to
the through history, the Ponzi scheme,
point, there- has been no such terrifying
policies "across" to employees, I
and many more.
Jhing as a lost strike because at ground. And when that does hap¬
repeat that we should start by
some
point the government has pen, the disillusioned liberal is
realizing that *these policies are
intervened and has granted more wiser and, more difficult to= mis¬ Ignorance of Economlq Principles based on
certain, experiences and
.
•
r
than the unions would otherwise lead.
Lots of good people simply do
logical, methodical principles. The
not know the rudimentary facts
have gained
through collective
CIO's Southern Drive
first job should-beto explain those
about how we manage to make a
bargaining. This was true in the
fundamental ; basic
guides, / so
A union campaign which is just
recent
railroad ; strike;
it was
living on this earth. Not one out plainly and so
frankly that all of
beginning — the much-publicized of a hundred knows what "real
true in the coal strike. Earlier it
the later explanation; of policy
Was true in oil, meat, automobiles, attempt to gain new membership wages" are, in contrast to "money
will make sensei 'ilt should be nec¬
in the South—is one which al¬
and electrical supplies*
wages." Not one out of a hundred
essary to repeat the basic guides,
ready has received more attention thousand
stops - to realize that now and then, because people for¬
in the press than it merits. ; CIO
The Administration's Course
there can be no security for any
get and new people are coming
organize : the
Southern of us unless most of us
We must face the fact that col¬ won't
work, and along all the time who have not
workers in any considerable num¬
lective bargaining in any impor¬
keep on working. And very, very had the initial -training. tant industrial dispute will not re¬ bers; most of the large-scale in¬ few are well enough informed to
It is something like the courses
dustries which are readily organ¬
sult in a settlement, so long as the
know about the tricks which gov¬ we take in school. Eventually we
ized by industrial unions are al¬
Administration pursues its pres¬
ernment plays on the citizen with
may get up to'talgebra and geom¬
ent capricious course. To believe ready dealing with unions. And in hidden taxes and subsidies.
etry—yet we- never get there
small shops, the AFL will be more
that we have finished with the
We are late, but we can start without a formal training in simsuccessful than the CIO, as it al¬
strike period is to be blind to re¬
now, to correct this terrible lack ple -arithmetic^Tpday, there are
alities.
More : strikes—and more ways has been.
of 'knowledge.' In talking to its many people in management who
The real purpose of the CIO's
bitter strikes—are just ahead of
own
employees, for one thing, are wasting their geometric mes¬
Southern drive isn't to improve
us.
This is true no matter what
management can explain the "eco¬ sages because there hasn't been
labor's position, anyway. The real
legislation may be passed. It is
nomic why" of things, in simple enough:: attention paid to arith¬
true simply because the Admin¬ purpose is to try to recoup polit¬
and understandable terms, Tell¬ metic.
"
"
istration
has
not
yet
shown ical losses by concentrating on a ing employees what the company
few office-holders in a small num¬
A Program of Employee
enough courage to stand up to
policies are is not enough; we
ber of districts where big prom¬
any sizable union and say no.
Education
must tell why those policies were
ises can lure a number of voters
There arb several'simple, basic
'Gradually, remedial legislation
adopted.
There are many cases
will have its effect. When we fi¬ into the PAC camp if only for one where misunderstanding, doubt, points about development of a
election. These are desperate days
nally succeed in getting equality
and confusion arise not over the good program>of employee educa¬
before the law, one or another un¬ for the PAC, and having failed in
policy or rule itself, but over the tion which seem to hie to be worth
ion or union leader will begin to Detroit, Toledo, New York, and reason for the rule. And this
ap¬ setting ^downsaiv'.'r.^;
Ff"
Cleveland in recent elections, its
1. First, the"management must
pay a penalty for wrong-doing,
plies more strongly in the field of
among

Thursday, June 13,1946>

■

.

■

Any* company or industry can do
tlris, and do it with perfect bal-i
ance and ease, If it will
only train
the right men and take their
advice about how to hatidle
releases.

Let

give

me

you

an

'

example:5

When the CIO recently raised the
cry of "Ability to Pay" I won¬
dered for several days if
anyone

going to think of the counter¬
argument f<5r "Ability to Produce'5'

was

which

the

was

stake and which
Slogan. ' "
3.

Finally, it
should

we

use

thing

really- at

was a

far better

seems to me that
the * spoken wbrd

.

,

'

,

v

bosses will beat the drum in

new

fields.

:

The

for

present period is notable
being made by some

efforts

Now, lest I encourage you to
legislation will be a rough and
feel that the unions will fail and business companies and their man¬
stormy period, because every; la¬
fade away, I want to turn your agers to break a habit of years
bor leader now realizes that the
and to speak frankly and honestly
The
administrative branch of govern¬ attention to another point.
to their employees. I know of in¬
ment is afraid of the unions. We only reason for the change in pub¬
lic opinion toward anti-unionism stances where strikes are now in
will simply have to live through
progress, and where the company
the period of defiance after the is the bad record made by some
is telling its side of the story pub¬
of the unions themselves.
This
basic law is corrected.
; >
;
doesn't mean that we can just" sit licly through letters and advertis¬
\
Many people are misled these
ing. There is no attempt to break
back and do nothing to
improve the union in
days, particularly those who have
these efforts, there is
conditions. Somebody has to
fixed ideas or convictions
and
pro¬
nothing bordering on "unfair la¬
vide leadership.
,\have little realization • of the
bor practices" unless it be unfair
As one who believes in justice
Changes which come from year
to state the truth.
to year. This is most tragic in the and dignity for the employee, I
,

base of the liberal who fixes his

hopes

;

feel that management has a lot to
do in the near
future, to help

apparently honest
who works bring back normal, progressive,
and productive relations.
While
energetically in its behalf, and
who is still a follower after the we have been trusting in the in¬
on

an

movement

or

cause,

■movement

or

cause

has

turned

into ignoble and dishonest

herent good
into

Some

I

Misconceptions

It might be worthwhile to

amine

a

few

i

ex¬

misconceptions to il¬

lustrate this:

,

sense

of the average

paths. worker, he has been gradually led

.

1. The belief that the CIO is

a

a

belief

that America

isn't

sound, its economic system is the
wrong kind, and its aims aren't
good.

He hears from the union,
the government, and a good many
so-called economists that some big

thing called "Industry" makes a
high-minded movement, devoted
great deal of money and could
to

winning recognition for groups
of workers who have been denied

their just rights in collective bar¬

well afford to give him more than

he gets, for the same work or even
for less work, Now and then the

with all employees, some^
times finding it necessary to take
them in separate groups because
of the

large size of the total force.

To me, as a

speaker who has ap¬
peared before, a considerable hum-:
her of such groups, this- is most

important; I.? have talked eco^
nomics, labor relations,i 'and good

citizenship to peoole whose faces
showed /plainly: that fthey' wore;

honestlyh anxious * to geL at: th£
truth and ready to accept fair
dealing;;; Management people have
told

me

that such programs are

producing

the most heartening:
signs of intelligent and coopera^

tive;. group spirit thaU they have
in many years.
'
I feel that it is time for us to

seen

our minds. Far too many of
people are listening to the
selfish proponents of minority in¬

speak
our

terests.- -Far

too many/have*

knowledge of fundamental

nb

eco^

nomics,.no

regular ; reading f or
study habits, no access to unbiased
and factual information.. We ca»

,

do

something;.about.it,, and we
should
do
something about it.
Further, I might say thgt if we
don't there
will hot
be much
doubt about our eventual collapse
.

prices right now, than
other field.
::V/;^/f'V;

wages and

in any

The Task of Management

the period of try-out of the new

this

r,

'

and a few examples will mean
much in correcting the tendency of
others to abuse their position. But

more.
Many companies now are
making their first real attempts
to carry on Tegular
programs of
dinner-and-talk sessions with su¬
pervision. A few have been doing

take pains to see to it that the job
of channelingsUnfdrmation from

into.socialism.F
Let's quit being afraid to speak,
tell the: employee what we
a very good
|hinkeris not a good know. That, after all, is what he
talker or; writer—and sometimes
wants us to do—and that is the
it is the other way /around. But
right road to better labor relaiobviously weljhave to get the good, tions!
' '.v
clear thoughts first, 'then be sure
employer to employee is in good

hands.

really is too bad that the
Wagner Act was framed in the
way it was, and that so many em¬
ployers took it to mean that they
were barred from saying any thing,
to their employees. To me, there
shpuld be no great difficulty in
distinguishing between the type of
approach which is aimed at de¬
stroying the union and the one
which is designed simply to reveal
the factual, record and to state
Insulation.' between,
cause

of

the

silence

.

.

,

the method

them

does

r

outline.

of^transmitting
blurj or dull the

bt
!

.

American Airlines, Inn.

v

It

tofme tha^in this con¬
we {will
have to: train

seems

nection

more men who are

expert in put¬

ting the ideas and policies of top
management f into ^asily-understoOd words. .There is no easy so¬
to

thi£.

:

On ;jthe whole, I

fail more often
ourselves; by trying the

would say that we
to express

Debs, and

ilh%

Stock Offered
headed

An underwriting. group

by Kidder, Peabody .& Co.; Leh-1?;
man

Brothers; Glorje* Forgan &
Deetjen .& Chv

Co.. and* Emanuel,

on June 11 offered to the publie
fancy, complicated and sometimes
$40,000,000' of 3% sinking fund
legalistic style, instead of seeking
debentures, due June 1, 1566,. and
paths oflanguagewhich; would
.400,000 shares of 3 Y2% cumulative
be more normal in everyday dis¬
convertible preferred stock, par
course
value $100 of American Airlinesw
2. Another rhpor tafet side of our
Inc. The debentures are priced at
problem is 'hat of i timing, and 100, to yield 3% to maturity, and
flexibility, if have noticed that in the
preferred stock is priced at
controversies between unions and
$102 per share.
'
/
business firms the toon usually ;
The net proceeds from this fi¬
leads off with a seizes of hotlynancing will be used by thd
employer phrased, bitfer statements calcu¬ American Airlines, Inc.; to retire

the truth.

and employee grew up

and

.

that

Misinterpretation of Wagner Act lution
It

Sometimes_a~man who is

partly be¬

of

the

em¬

gaining over wages, hours, and
company he works for may send ployer himself, and we gradually;
working conditions. Today the him a
pen talk about what a great got away from consideration for
CIO is principally a political
thing "Free Enterprise" is, but the employees as such, as we be¬
movement, with little concern for those words mean
came concerned principally with
nothing to him
improving the condition of work¬ and
he doesn't see that this has the union and its agents. Far too
ing men who belong to the move¬
anything to do with his getting often, now, the employees don't
ment.
Its economists know the
know what is going on in negoti¬
more money.
>
"
sham that is practiced in telling
He doesn't know that the exist¬ ation, don't know why the plant is
the poor follower that wages can
ence of industry, of'the
unions, of struck, and have only a faint idea
he
raised, effort reduced; and
if any of what the company's po¬
government, of his own family, all
prices kept from rising all at the rest on
the production of goods sition is. Qnly: the union's own
same time, but they don't care.
and services.
'
Nobody ever told position is always adequately dis¬
2. The belief that PAC. can de¬
him that in simple terms. He be¬ played.
;F :Cr F;F
: ^VfFF
liver at the polls. So long as PAC
lieves that security is something
Another bad habit is the use by

^

.

lated to
ge| headlfhe attention.
ManagementI is mentioned for: a
-

day or two as being; "unavailable
for comment" and ^several- days

the

outstanding $25,000,000 short-

term bank loans obtained in Feb¬

ruary; of this,year from 54 com^
mercial banks, for the .purchase
long, heavy
of flight equipment, for additional
statement to {he press/More often
than not it fe; ignored or buried, ground - equipment/ Ur, advances
particularly if the lunion in the to? or investments in/ gutrsidiaries
meantime hal loosed another blast
/and for othet corporate purposes.
of invectives lor has^ coined 'a few

later

may

,

issue

f

more

slogans!

|

:P,.r ./in

i"

——i

;.

F

*

.

fhow $hat has hap¬ New York Stock Exchange
pened to slow:lip the management
Weekly- Firm Changes ; ■
rseponseV Knowing that the union
The New York Stock Exchangecan say anything apd" not be held
responsible, bqt thai "the "company has announced the following firm
has to be careful vidth its words,
which can be promised and de¬ management of fancy words and
changes:
the executives harvd; had to spend
livered by government out
of phrases which often are confusing
Interest of the late William T»
hours and da^s "in /Combing each
some bountiful supnly of
money, to. the listener, -and which may
phrase.' Then f.the statement has Childs 'M: Stein' Bros. :-& Boyce,
and he believes that
money is muddy the waters instead of clari¬
to be passed % the? legal adviser, Baltimore^ Md.; ceased as of Ma^
wealth. He believes that
govern¬ fying them. In many cases man¬
then it has.tofpe put through.the
ment is all-wise and unselfish,
31st,,■■■/.•
-f
agement turns to a writer who
and thereby is his best
.
hope of styles himself "public relations public relations department.
W; Bertram Remey, partner in.
refuge from the economic trials counsel? without, having much
Now, as a long-time editor and
Hendrickson ;& Co., died on June
he faces. He believes that a few more
to recommend him than the reporter, I knoiw what it takes to
people have most of the money ordinary facility of - handling a get the headlines.-1 It takes speed, '5th.
;

Most of

us

.

was

riding

on Mr. Roosevelt's
magic carpet it claimed credit for
#

all victories
were

arid

a

lot of people

ready to believe that it

was

powerful in itself. For the past
year it hasn't amounted to much,
and it isn't scaring any but the
simplest-minded Congressman to¬
day.
3. The belief that CIO and AFL




•

v.-,

.

Volume 163

Dollar Averaging Is
Advocated in flew

Alabama,
West
Virginia,
New
Hampshire and Connecticut re¬
moved
such
prohibitions
from

An

underwriting group headed
Blyth & Co., Inc., and Mellon
Securities CorpW>n June 10 of¬

\ Dollar averaging in investment
shares wsa advocated by

shares of

Wiesenberger, head of the

the^J-public

to

fered

corhmbrf stock,

ington, constitutional amendments

of Arthur Wiesenberger & Co., 61

Broadway, New York City,
best

as

the

Failure to

form,

at

nounced

a

luncheon

the

at

Co.,

and

loan

associations

and

insur¬

ance
companies in the financial
life of the country.
.He estimated that the 125 active
investment companies currently
'

467,670,

1947 to

sale^§6unting to $51,wRi;g^§4Dayton- This is
largest public

comm^h^bck of a public
utility operal%gfe^ompany under
he Holding
t^^Lny Act to date.

greater appreciation of the ad¬
vantages of dollar averaging.
:

"The

only

that must

general assumption

be

before

made

.con¬

sidering such a program," Mr>
Wiesenberger wrote, "is that se¬
curity prices will continue to
fluctuate and

will

linking

from

spell

not

suffer

which

they

will never recover."

Investment company shares of¬

-

.

fer

the

ideal

medium

for dollar

Averaging, in Mr. Wiesenberger's
opinion, because they
provide
diversification of risk, supervised
tnanagement and convenience.
"In this year of easy money
With $180 billions of cash deposits
and Government securities in the

hands of the public, it would be

he asserted,
"for
investor to investigate the
opportunities in dollar averaging
With
well-managed
investment
company shares. Likewise, secur¬
ity dealers might expect to avoid

mud} of the denunciation which
they

customarily

bear markets,

to

receive during
if today they were

intensify? efforts to; introduce

for

one.4g&&Xompany is en¬
gaged principally in the produc¬
tion, transmission, purchase, dis¬
tribution

and

sale

"In

important

an

as

New

Hewitt

source

More than

18,-

York

State

the

on

California

the State of Ohio; serving a popu¬
of approximately 688,000.
The company's
addition to the

consists

capitalization, in
common

stock,

Toledo, Ohio,
1946

Exchange

of

in

some

tracks weren't oper¬

$103,664,000 in Maryland. Flor¬
a leader in betting
on horses, was reduced to 15th

ida^ usually
place last
strictions*
"State

by wartime

year

revenues

re¬

from horse

Cu¬

resum¬

theA $28,850,000 out¬ ing a survey which was discon¬
firsi/^mortgage 2%% tinued during the preceding-' two

bonds, due 197$jand 100,000 shares
of
41/2%
cumulative preferred

stock, $100 par^value.

because

years

tion

Offered al $40
investment

a

a

variety of informa¬

indicative

of

the

Of

and 1936 he opened

for

Blyth

anc

Detroit and

Included

,

is

in

the

data

An examination of the figures
the

firm's

racing taxes for approxi¬
mately 20 % of their total tax
on

revenues."

Cincinnati.

quarters

Cleveland

in

will

but

divide his time between Cleveland
and New York.

■/

/ ;

Admits R. K. Shimel
g FT. WAYNE, IND.—Robert G.
Shimel

has

Shimel

to

admitted

RESOLUTION"'DIRECTING
*

NOTICE

THE

expected

as

a

many

statement

Supreme
Court
decision
confirming the
right of
Ramsey County
(St.
Paul), Minn., to levy taxes on
certain
property
sold
by
the
Federal Government
to
private
interests on the instalment plan.
The National Association of As¬

OF

PROPOSALS

$5,700,000.00

BONDS

OF

TONIO,

TO

PUBLIC

OF

REVENUE

TEXAS.,,

THE

CITY

BE IT RESOLVED BY

SIONERS

THE

OF

OF

SAN

AN¬

THE COMMIS¬

CITY

OF

SAN

AN¬

TONIO—

*1. That

sealed

the

of

addressed

bids

be

the

to

San Antonio

City of

Clerk of the

until

result of

?: /
A

:

PUBLICATION

INVITING

PURCHASE

In the

in

K.

WANTED

BIDS

City

Supreme Court
action

Robert

partnership in Robert
G. Shimel Co., Standard Building.

City Clerk

the recent United States

1931, and Jan. 1, 1946.
merits

rely

states is

a

well

"In several other States, as well,
the racing industry is an
impor¬
tant item in the State budget.
Rhode Island and New Hampshire

Legislative

table contrasting the indi¬
vidual debt burden on Jan. 1,

group was awarded the issue on
June 5 at competitive bidding on

branch offices
in Cleveland,

Co.

IMPROVEMENT GENERAL

Confirms State Tax Rights

commun-

statistical

exchanges.

•//Mr. Hewitt will make his head¬

and Maryland $3,816,000.

U. S.

as

offered
to "thV public
147,000
shares of no-par common stock of
The Tucson GcfgTJElectric Light &
Power Co. at $40 per share. The

&

will

ity of its debt payment status
of April 1, 1946, as compared
with
its
previous experience.

:

headed by Blyth # Co., Inc., anc
The First Boston/ Corp. on Jhne 7

000

financia

particular interest is the

record given for each

group

conditions

standing of the county itself
of its various, local units.

Share

banking

war

Like its predecessors (it was first
issued in 1939), the current num¬

ber includes

Tucson Gat Com. Stock

of

other

and

rac¬

$30,333,000 in racing taxes, Cali¬
fornia $12,740,000, Illinois
$4,251,-

distributing the
"Comparativ

yahoga County," thereby

Cleveland,

Co.,

mutual windows in Illinois and

100.278

Statistics of Subdivisions in

&

Inc., where he recently resigned
as
syndicate manager. In 1935

ating because of the war, while
$168,060,000 passed through pari-

of

standing

An

are

edition

associated

become

For the past fifteen years, Mr.
Hewitt has been with Blyth & Co.,

saje of natural gas
ing, generally in proportion to the
tot residential commercial, in- Debt Survey Again Issued
amounts bet, followed the same
dustrial and municipal purposes in
Roose & Co., Toledo Trust Bldg., pattern with New York taking in
lation

An¬

—

members of the New York Stock

alone

ponies

lias

-

Prescott

with

was

1945 despite the fact that

OHIO,

CLEVELAND,

nouncement is made that Max A.

bet on horses
California bettors put

$233,615,000

Cuyahoga County, O:, Local

tribution and

$1,500,000,000-a-year

a

last year.

electric

of

to

$450,663,000

the various bid¬

of

Prescott & Go., Gleve.

000,000 U. S. citizens played the
horses in 1945, betting twice as
much
as
was
wagered
at
the
tracks in 1943.
'

serially from
1964, inclusive.

next with a tender
for the same rate.

exemptions

this fall.

on

Max Hewitt Now With

of

,

imelight

lMs, while a group headed
Halsey, Stuart & Co., was

by

and in the purchase, dis¬

energy

worthwhile,"
every

name was
1911, to the

line

4

of State revenue.

Thus, a syndicate formed by
Blyth & Co., which was In third
position, made an offer of 100.31

RyK$^«|hich

good

are

the

in

business has put racetracks in the

mature

among

chances

there

is

'

racing

were

ders with respect to price ideas.

compa*^organized in
in Marbh#*^!, as The Hills

present

easily be doubled within a few
investors were given

bonds

opinion

The

changed

which

similar

remove

will be voted

"The phenomenal rise of horse

The sale, incidentally, demon¬
strated a marked difference of

sale of

asset

bonds

he

says:

the

group headed
by the Northern
Trust Co. of
Chicago, at a price
of 100.789 for the same
coupon.
The

Ohio

years. if

fund

to

the Federa¬

duty." /Continuing, the Federation

tion of their bid of 100.86 for VAs
and the sale of the bonds to a

from the

& Dales

of

award

races—the

he
hat

by the city last Friday.
lapse resulted in the rejec¬

This

Utility HoldinMJgompany Act of
1935, and no:p5®f the proceeds

have $2.6 billions of assets under

bid

notice

placed

an order of the
an.(LEMaange Commis¬
issued
under
the
Public

professional management for more
than a million shareholders. This

figure, he predicted, could

the

tension

compliance with"

believed

official

by the

$500,000
Columbus, Ohio, electric light ex¬

Securities
sion

the

use

required

sale, cost the account of Stranahaii, Harris &. Co., and Otis &

With

Bankers Club publication of the
1946 edition of his
book, "Invest¬
ment
Companies," asserted that
investment trusts are beginning
to acquire a stature as
imposing
as that of savings
banks, building

as

reason

cautions, "Don't be alarmed

if your State Treasurer is seen at

of

awarded

for investors - to -cope
•
•
^: ;/
shifting market trends and $33,639.
for investment dealers to temper
The shares, wS-fch constitute the
the "feast or famine" nature of entire outstandmg common stock
their business."
of the company,jare being sold by
? Mr.
Columbia Gas & Electric Corp. in
; Wiesenberger,
who
an¬
way

tion

To Second

th&issue at competi¬
tive bidding on'June 5 on a bid of

was

For this

ators.

Columbus, O., Bonds Sold
High Bidder

1,530,000
value

par

York. Stock Exchange firm- $7, of The Dayton Power & Light
Co. at $35.75 pe&fihare. The group

New

In Utah and Wash¬

their tax laws.

ay

Arthur

Federal

the

by

Government. During the last year,

Sth. Offered at $35.75

trust

owned

property

Dayton Power Common

Edition of "lnv» Cos."
.

3243

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4498

received

the

at

office

of

the

City of San Antonio
City Hall, San Antonio 5, Texas,

10:00

o'clock

M.

A.

the

on

27th

day of June, A. D.1946, at which time
and place bids will be opened for the / >:'
sale of all or any part of $5,700,000.00
of Public
Improvement General Rev¬
Bonds to be issued by the CLty of
Antonio,
Texas,
and
dated
the
day of July, A. D. 1946, said bonds
being in series and numbered as fol¬

enue

San
1st

lows :•

•■■;!;-::V;v

A-45

^^'"■* ui'l

■

INTERREGIONAL

HIGHWAY
B-45

BONDS

AIRPORT

;/ TRATION

...$1,750,000.00

ADMINIS-

:

BUILDING

t

% BONDS
the bid of $37.81, pey share. The
1,500,000.00 w*
of investment
sessing Officers stated that the de¬ C-45 STREET AND BRIDGE
:
:
stock is being s sold by Federal that the "general improvement in
cision will permit state and local
BONDS'
planning to clients."
$J
2,000,000.00
practically every instance is out¬
Light & Traction Co. in com¬
Dollar averaging will especially
governments to
tax properties *-45-1 GARBAGE'; DISPOSAL
pliance with/Worder of the Se¬ standing andthat of the overall
hereafter sold
300,000.00 V
appeal, he said, "to those investors curities and
by the Federal Q BONDS
-Exchange Commis¬ picture is but short of being
FIRE
STATION
who already know, whether from
Government to private owners on U-45
In support of this
sion issued
the Public astounding."
BONDS
150,000.00
a time-payment basis.
plain horse sense or from sad
The deci¬
Utility Holding ^Company Act of; view, the bond House calls atten¬
2. The Bonds are of the denomina¬
sion
experience, that they will do
permits taxation of such tion of $1,000.00 to mature within a
1935, and constitutes all of the tion to the following;
better in the long run with: a sys¬
real estate as soon as the land period of 20 years, to be
paid serially
The overall debt iri Cuyahoga
company's
outstanding common
tematic purchasing program than
contract has been signed, rather In yearly installments, as nearly equal
stock.
; /
County on Jan. 1,1931, was $298,as
practicable, to bear interest from
than being deferred until the final
by trying to get in .at the low
date of not
more
than 2j/b
per
cent
Proceeds frbm; the sale of,the 470,122. The comparable total on
payment has been made and the per annum, payable semi-annually. /.
jprice on every decline and then
Jan. 1,1946, was $172,937,800, rep¬
common stock ate to be received
title given to the new owners.
trying to catch all the swings of
3. Both
principal
and interest' are
by Federal and' after such sale resenting a reduction since the
the market"
payable
at
the
office
of
the
City
Tucson
Ramsey County revenues will
Treasurer in the City of San Antonio,
Gas, ^Electric Light
& earlier / date ^ of $125,532,322, or
Mr.; Wiesenterger pointed ou
or at the
fiscal agency of the City of
be increased more than $100,Power Co. will' cbase to be g sub¬ 40%.
Moreover, the downward
San Antonio in New York, N. Y.
that dollar ; averaging
is wel
000 by, the decision, The sum
sidiary or an,affiliate of Federal trend is being currently main¬
/14. All proposals shall be made on
suited .to/ the individual 1 with
includes assessments
or its parent/ Cities Service1 PCWer tained, as evidenced in the fact
covering
bid forms furnished by the City Audi¬
steady income who wants to in
& Light Co., or /the latter's par¬ that the Jan. 1, 1943, aggregate of
the
time
elapsed
since
the
tor, and accompanied by-a Cashier's
vest some specific part of it in
check for $10,000.00, payable uncondi¬
property—an
old postoffice—1
ent, Cities Service Company.
$226,200,437 was reduced by $53,securities,
tionally to jthe City of San Antonio "
was sold into private ownership,
262,637, or 23%, over the last
The Tucson company, organized
to
guarantee the performance of the
v- > "He can easily set up a dollar
in
1939.
At
that
time, the
in Colorado in 1902, is a public three years.
proposal.
:
averaging plan as a savings pro
5. The
county assessed the premises at
Bidder
shall
state
the
rate
It may be mentioned in pass¬
Utility pperatiri^ company en¬
'.gram comparable in some respects
of
Interest at Which the Bonds
are
full value. Litigation began when
ing, that in the May 7 primary
gaged principally in the genera¬
proposed to be bought, not to exceed
/to the savings created by the pre
the new owners claimed that
tion, purchase;^ transmission, dis¬
election, the Cuyahoga County
2Va per cent, and the premium, if any.
jnium payments on a life insur
since title to the property was
tribution and sale of electricity
electorate approved the issuaa.
The
Bidder
shall
pay
for
the i;
ance
policy," he said. "Dollar and in the
still held by the Federal Gov¬
ance of $14,055,000 bonds, while
opinion of
approval by Chapman &
purchase, distribution
"averaging is also useful in setting and sale of
Cutler, Attorneys-at-Law, of Chicago.
ernment, it was immune to tax¬
citizens of Cleveland, the coun¬
natural gas in the City
Illinois, but the City will pay for the
up a planned investment program of
ation.
Tucson, Arizona, and the sur¬
ty seat, authorized a total of
printing of the bonds, and the Citsfor the pension fund of a corpora
will
furnish
the
rounding area. Iti electric service
opinion as
to
the
$35,350,000. The county's debt
The county took its case against
.lion, for a mutual aid society, or area has an
legality
of
the
bonds by the City
on Jan. 1 last, however, was no
:estiipated population
the purchasers to the State Su¬
for a child's savings, when com
Attorney and the approval of the At¬
of approximately 92,000
more than $25,700,409, as against
and/the
torney General of Texas.
/
preme Court in 1942 after losing
bined with the purchase of care
gas service area of approximately
$50,979,606 on the same date In
7.
Bonds
are
to
be
delivered
and
in the District Court/ The higher
fully-selected
investment
com
60,000.
1931. For the City of Cleve¬
paid for by the City Treasury in San

this sound method

•

-

•

..

-

'

...........

•

-

'

.

-

'

..

.

,

■

■

pany

shares." v

land

Barker, Middaugh Daw

Trefethen With Bacon

.

comparative

the

figures

$97,112,512 and $127,359,558, respectively.

were

county, to the
;

'

(Special to The Financial
-

SAN FRANCISCO,

Chronicle)

CAL.—Van

Syckle Trefethen has become
sociated

with

Montgomery
the

San

Bacon

&

and

geles Stock Exchanges.
fethen

in

manager

'Co.

the

for

as

past

was

Los

of

An

Mr. Tre¬
Oakland

Mitchum, Tully &

-




With Garrett-Bromfield
DENVER,Jgofc'6.--Frederick
Barker

Co., 256

Street, members

Francisco

ruled

tribunal

,

and

Horse

F.

Harfy W. Middaugh

Racing Pays

-Ask

The Tax Collector

may

rett-Bromfield & Company, 650
Seventeenth/Street.
Mr. Barker

horse racing

feel otherwise, the fact is that

is paying off big divi¬

dends these days, according to the
Federation of Tax Administrators,

formerly!" with Peters, Writer
Middaugh was which recently revealed that 21
with Boettcher and Company; in States permitting pari-mutual bet¬
the past he was > in business for ting collected $70,000,000 in taxes
was

& Christensen, Mr.

himself in

Nft^York City*

:•

\

last

year

from

racetrack

new

owner

favor

of

oper-

the

effect that since
*'i$

Antonio, Texas.
8.

in

complete
enjoying full

Paul.

.

.

.

it would

seem

into

bid

9.

City

to

than

date

of

Treasury,

will

par
and
payment,
be con¬

in St.

10.

■■■:■'

The

reject

that this

any

Further

this

sale

tion

to

right

information .relative

.

to
to

City reserves the
and all bids.

obtained on applica¬
Auditor of the Cit^
of San Antonio, City Hall, San Antonio
5, Texas.
may be
the City

PASSED

judgment.

AND

APPROVED

day of May A. D.

The National Association of As¬

GUS

sessing Officers announced that in

FRANK
,

this

23rc

1946.,••;•/••/
B.

MAUERMANN,
MAYOR.

ATTEST:

recent

years several states have
abolished blanket exemptions to

less

for

interest

the

sidered.

property should bear its just pro¬
portion of the public tax burden."
The U. S. Supreme Court has up¬
held this

No

accrued

and is
use of the property as a commer¬
cial
enterprise
in
competition
possession,

with other like real estate

While there may be some who

have become associated with Gar¬

the

in

V'-

W. BRADY,.

City

Clerk.

•

•

1 ■-'

-

'

;1 i1 ' v,..!

77 7-7- '

77

".v.:-::■

>

-■

"'A'.'-

■'

.•

•.

;

drying.
It takes an¬
for distribution of
the millwork to jobbers and about
additional

other 30 days

for it to get to
retail dealer.
The whole process takes about
six months.
Hardwood flooring
takes about the same time to get
from the'forest to a home site and
ten days after that
the contractor
or

f;

requires

lumber

framing

even

to get into use

about five months

I;; r, if it is probably aged.
77 So

the lumber

'

next week

7

you

next month doesn't

or

that nothing is being done

mean

to increase

As

won't have
want by

the fact that you

of

all

production of lumber.

matter of fact we have a

a

rationing,
markets

but

we

still had black
evidences

the other

and

We

in build¬

the same thing

see

ing materials. Right now distrib¬
ution v is
rapidly becoming the
number one problem in building
materials.
You in Buffalo know
this from painful first-hand ex¬

perience. 7, Lumber .stays in. the
producing area, normal channels
are by-passed.> The cause of this
is not that prices are too low; the
cause is that the demand is so
great. 7 This is shown by the fact
that in materials where no one

about the

complains

price,

still exists.

We

distribution

for this year.

correct bad distribution in

lumber production

March

:

'
an

increase

above February

produc¬

2.6 billion board
'

of

was

24%

feet,

bad
are

taking the most important step to
increases

in

getting

Administration forecast of 30 bil¬
lion board feet for 1946

be

may

The first quarter pro-

exceeded.

duction was at an annual .rate of

7

,29 billion but the March produc¬
tion reached a 32 billion annual
rate and only a

slight increase is

needed to realize the 1946 produc¬

tion goal of 32 billion board
'

feet.

A

preliminary report just re¬
ceived that April production hit
2.9 billion feet gives us additional
reason to hope that we will reach
Hie goal.
*
,
'
,

,

Iron and Steel Products

'">]
!

Right now iron and steel prod¬
are a big headache in build¬
ing materials. The National Hous¬
ing Agency and CPA are working
with the industry to step up pro¬
duction, but needless to say, noth¬
ing much could be done during
the coal dispute,* which hurt production of many other materials
i

ucts

7

as

well.

However, cast iron radiation has
Increased steadily since V-J Day
from less than one million square

;

7
7

feet per month to 2.35 million in
March and 2.56 million in April.
-

Structural

insulation

in¬

board

creased 21 % to 166 million square
feet in March.

Asphalt and tar roofing prod¬
ucts expanded from 5.1 million
squares in February to 5.8 million
in March, raising the first quarter
totals to

16.6

million

10% increase

over

squares,

a

the last quarter

of 1945.
"

First

quarter production of 180,-

000 bath tubs exceeded the output
in the last quarter of 1945 by 60 %.

The
in

March

warm

rate

of

production

air furnaces, 47,100 units,

was almost equal to the average
monthly rate for 1941, the biggest
year in the history of that indus¬
try.
7

One thing that complicates the

materials problem is the abnormal

demand,
even

a

demand

great that

so

record-breaking production

7; does not meet it.' We have acted
to cut this demand by stopping
,

non-residential
is not essential
-

This

was

Production

construction
or can

done

that

be deferred.

by

a

<

Civilian

Administration

order,

strengthened just last week when
CPA

ordered

its

field

offices

to

reduce the

dollar volume of such
authorizations by two-thirds.
v

But demand is still greater than

supply.
Remember the cigarette
shortage last year? " Actually the
shortage wasn't as
bad as it
seemed but as soon as
were

inventories

wiped out and cigarettes be¬




tool

to

up,

we

set

-

-

Frontier Planning
report specifically raises
distribution problem caused

The Niagara
Board

to keep from losing

and

why we need a long range

'7'* ^;;77:

housing plan.

;

ground,

race

The

building materials problem
isn't solved yet, but we are turn¬
ing the corner and the road ahead
is

a

smoother

lot

than

the

road

have just traveled. We haven't
licked the problem, but we are

we

licking it. Reports show that 315,-:
000
dwelling units were started
the

in

first

four

year.7 We're
duction every

months

the

of

getting better

pro¬

day to supply the
materials to finish these houses.

What

the alternative to the

is

materials

production

have outlined?

program

To remove all

I

so-

called restrictive government con¬

trols.

throw

To

building mate¬

the form

of

taxes, crime and

I am glad to see

increasing rec¬

product, he plans when and

a new

all.

how he will dispose of the prod¬

come,

served, highest bidder take
Any such plan would cut the
flow of ihaterials for housing to a
trickle,

mere

.

Non-residential

would get first call

building

materials.

Next would

orate mansions and

come

so

on

on

elab¬
down

uct, what it will cost him to make

price it will bring, and

and what
he sets

a

duction

haired

sales schedule and a pro¬
schedule.
Is that long¬

or

tin-American? Of course

not. Well, then, what's wrong with
setting production schedules f on
ped to other sections of the coun¬
This would mean virtually no new housing?
try.
When we lay out an automobile
houses ancl apartments for vet¬
The trouble is not with the rule
erans.
They would have to be factory do we let it just grow up
but with the abuses of the rule.
satisfied with second-hand hous¬ like Topsy or do we plan it care¬
It has long been customary for
fully? We plan it, of course; Yet
mills to make retail sales in their ing or third-hand housing at in¬
flated prices. Why should the vet¬ somehow we are still afraid to
areas to serve customers to whom
eran
be given only the leftovers plan as efficiently when: we lay
no other retail outlet is available.
of housing? He has just performed out our residential sections; in
But when the black market oper¬
a dangerous and
unpleasant duty fact, we seem almost proud of not
ator^, use this as a dodge to sell
them.
Sunshine and
for his country. It is not too much planning
wholesale
quantities
at
retail
fresh air are free; they can be had
to &sk of that country ttjat it giv^
prices it becomes an abuse.
in
unlimited 7 quantity
without
him a decent place to live.
7
We must stop these abuses. The
There's another important point premium payments or raised price
OPA is moving to do just that.
to remember about removal of all ceilings. Yet we have built thou¬
They have just finished training controls. In the
past, housing has sands of homes under the smoke
a large number of investigators to
J, .
not developed at the rate of other clouds from factories.
work with the Department of Jus¬
industries. ' Almost the only time 7 The time has come for; a coii^
tice to stamp out the black mar¬
that housing has moved as fast as plete change in our approach to
ket in lumber.
the rest of the economy has been housing. We must plan neighbor¬
hoods as intelligently as we plan
It takes constant vigilance to
during the dizziest whirl of a
make a priorities system work in
huge factories.- We must tackle
boom and bust cycle.
!
a shortage as serious as the pres¬
What happened after the last the production, of homes with, the
ent one in building materials.
I war? When control Svwere- lifted, assembly line technique. We must
welcome new methods, seek them
think the housing priority system
building prices skyrocketed out of
is working out pretty well, but
reach
and
home
construction out, adopt them, approve them,
not well enough.
We're going to dwindled rapidly and didn't re¬ and hunt for something newer y&t.
We must
see to it that it works better by
stop building homes
cover until after a painful period
slowing down on the issuance of of deflation. Lumber prices dou¬ with no more ingenuity and imag¬
ination than that Which put the
priorities to get them into propor¬ bled, but production went up only
tion with the supply pf materials. 10 %.
Housing didn't really get fringe on top of the surrey. Vfe
must see the imagination and in¬
Right now priority holders in going again until the middle 20s.
Buffalo or Kansas City or Atlanta This house-hungry nation cannot genuity that changed automobiles
from imitation buggies to the well
are getting the building materials
afford
to
repeat that disaster
engineered product of today.
that go into these towns, but that again.
7
Two facts in housing hit us in
is scant help to you if faulty dis¬
A Ten Year Program
the face:
1
tribution
is
keeping
materials
In fact not only can we afford
We are now in the midst of a
from your town. Tighter controls
no
housing bust, but it is neces¬ critical shortage.
The type of
may be necessary.
We may have
sary for the nation to plan for a
building that produced this short¬
to extend priorities all the way
ten-year period of sound building age and made it worse with every
back to the.producer.
at the accelerated pace set by the
year that passed is not going* to.
Want No Unnecessary Controls j Veterans Emergency Housing end the shortage.
^
Program.
You have recognized
This
nation cannot afford Tto
I don't want any controls that
this need in Buffalo in your plans have the shortage continue and
are not absolutely necessary.
In¬
for both private and public hous¬
grow worse.
.,''^"7
dustry does not want them either
ing.
The Senate of the United
In America we recognize that
and has said ever since the war's
States has recognized it by pass¬ we have certain public responsi¬
end that uncontrolled distribution,
ing the ^General Housing Bill bilities. This is recognized in tax¬
through - normal channels is the
which bears the name of Senator ation for police protection, courts
best way to get fair distribution.
Wagner.
; /
.
and schools.
It is admitted that
I sincerely hope that the present
If you want statistical proof of every citizen is entitled to the
maladjustment of distribution is
this need, let me read what the protection of the law, that all chil¬
only temporary and that industry
Niagara Frontier Planning Board dren are entitled to free educa¬
will be able to correct it quickly.
has to say about the past history tion.
I say that everyone is also
We don't want to have to al¬
of housing in Buffalo, a story that entitled to a decent place to.live.
locate lumber or any other mate¬ is
But if you want a harder-headed
typical of the rest of the coun¬
at the mill instead

ship¬

of being

until

ran

we

out

of

materials

somewhere in the upper brackets.

.

r

rial

on

get

normal

a

normal

have

a

geographical pattern to
distribution through

channels,

but

we

must

fair distribution of lumber

other building materials.

and

Another aspect of the materials
is* the development of

problem

try.

7;

-

the average number of units con¬
structed during that period was

3,145 units

products.
Such things as
light weight panels using metal

ness

and paper or

constructed

new

as

a

used

well

plastic, but

conventional
in
as

the site.

wall,

factory-built
in

those

They

as

strong

: can •

be

homes

as

constructed

on

open

better homes for less

this

it

may

area

then in fair¬
be assumed that in

per year,

there should have been

at least
3,000 units per year from the 15
years that have elapsed since 1930,
or

a

an

average of

total of 45,000 units.

Yet 7,-

past.

served adequately in the
Funds are authorized to aid

towns and cities in

I say

that

1

we

decent place to live
the

cost

of the

and sickness
ters

who have a

cannot afford

slums,

the crime

that breeds and fes¬
Even if the slum is

there.

not in your

people in

,

city, you pay for the

this slum who cannot

fight for their country in
war

time

or

of

time of

to

its production in

peace.

It is cheaper to

add

provide
ing.

them with decent hous¬

contribution bfferedt

vital

The

both to home seekers and to build¬
ers

by the Wagner-Ellender-Taft

Bill is the aid extended in meet¬

ing the

demand

of

the "middle

It must be realized that

market."

although there is today a large
potential market for homes from
$7,500 up to more than double
that figure, in

the long run the

great demand—the demand which
can create a market lasting over
the years and challenging

the full
capacity of the building industry
—is in low-cost homes.
the

the

homes

the

houses

have

been

These

worker

are

buy

can

below the cost of
apartments that

and rent, homes

and

built

in

volume

real

during the past few years;]
;1If we can get down to low cost
in building—and I believe we can,
once we get going, using the tech¬
nical and financial aids provided
in the general housing bill—the
housing
industry
will have, a
sound
and lasting prosperity it
has never achieved before; *
,

I know that

State

in

and

in New York
Buffalo appreciate
you

the importance of public low-rent

housing

because

communities ii*

applied for as¬
sistance to build 24,450 low-rent
State

the

have

dwelling units, to cost about $173,675,000.
The City of Buffalo is
already
a
leader among com¬
munities taking positive action to
meet the housing needs of lowincome families, with its present
1.900 units built under the United
States

Housing Act program, f■ I
hope that the prompt passage of
Wagner-Ellender-Taft Bill
you
to build your
other proposed units.
*
The Wagner-Ellender-Taft Bill
is designed to accomplish one goal
—a decent home for all American
the

will

enable

families, and it is designed to aid
private enterprise to do the bulk
of the job.
The provisions of this
bill to get better housing at less
cost

who

that every veteran

mean

gets

a

home in the next few years
well as in future years—will

—as

get

a

better home for less, money.

Prompt nassage of
by the House is a
the veterans, and a
all the rest of us.
The housing

States

and

the

next

a

live.

'

7

i!'

half million homes in

two" years "So

veterans will have
to

7

We need to start

plain.

are

two

this measure
necessity for
necessity for

needs of the United

We

a

'that*

our

decent place

need

to

keep

on

building at this pace until every¬
one

in America is decently

We

housed.

cannot do this if we move

forward

grudgingly, turning our

face from the future to look long¬

ingly back at the "good old
The "good old

days"

442 houses were constructed dur¬ clean out slums than it is to pay us, gone forever.
and ing the 15 years between 1930 and rent for them year in and year out days" are ahead..

the way to
money

reason

ten-year period prior to
1931 is considered as a normal era
of demand and construction and
"If the

financial aids to per¬

new

clearing slums
ognition of • the importance of and blighted areas and in assem¬
planning.
I am glad to see that bling land for housing in accord¬
planning is getting out of the dog¬ ance with sound planning prin¬
house. We have wasted too much ciples.:; Other .funds are author¬
time and effort already opera ting- ized
for
technical
research
to
under the fallacious theory that
lower building costs and to im¬
planning is impractical and that prove the quality of housing. And
the American way is for things finally, the bill provides for the
just to happen in some mysterious building of 125,000 units of public
low-rent housing each year for
haphazard fashion;
Why anyone should be afraid of the next four years to serve those
planning I don't know.
When a whose incomes are so low that
manufacturer starts to bring out private enterprise is unable, to

first

First

sists of

mit private enterprise to meet the
needs of the great middle market
never

Importance of Planning

where he will get his materials,
where he will get the machinery,

rials up "for grabs."

production.

the
tion, more than double the normal
^ seasonal increase. Monthly lum- by the fact that mills are per¬
ber production figures, expressed mitted to sell at retail in their
in annual terms and adjusted for local areas. This, the report points
the
five-year
seasonal
average out, results in lumber being sold
show that the Civilian Production

first have
up-assembly

production of them
to

lines.

of abnormal distribution.

of meeting the 32
million board feet that is the goal
chance

good

,

in

'
needed hous¬ disease.:':'1■■ ■.7.77 .,'7/7';7'> ■
In the next two years there
ing
that approximates 38,000
units.'' ] Actually, the increase in won't be much chance to clear out
came
a
little scarce, the normal they mean that more houses can
(Continued from page 3211)
suburban population during this slums or to build homes for the
be built now, even though there
ties for kiln drying average about channels of distribution failed to
are not enough conventional ma¬
era,
as the report points out, ten million non-veterans living in
50% of capacity.
So half of the do the job properly. There were
terials to go around.
Production makes it fair to assume the back¬ substandard dwellings. To do this
under the counter sales, tie-ins
sawed lumber would be kiln dried
7 777/ calls for the decade of intelligent
of these new materials on large log is even greater.
for 30 days and the other half where you had to buy some pipe
Contrast these figures with your building proposed in a measure
tobacco to get cigarettes, and black scale is encouraged through the
would be air dried for six months.
guaranteed market provisions of planning board report that the that is also an essential part of the
1 .7/7
This would mean about a 100 day market prices.
the Veterans Emergency Housing 1946 housing goal for the whole Veterans Emergency housing
average for drying.
It takes an¬
Bad Distribution
Act.
But, like the deevlopments Niagara Frontier district is 7,400 Program, the Wagner-Ellenderother 30 days for the lumber to
Shortages always make for bad in conventional materials, these units, arid you can see why the Taft Bill/;v:;;V^7;-V,::v7;:7>\xV:.:J7;;7
reach the millwork manufacturer
The bill provides four major
In war we tried to new products do not guarantee two-year program will just be a
who averages about five days in distribution.
To get mass sprint on a treadmill, a desperate tools for better housing. One con¬
correct this bad distribution by overnight miracles.
present backlog of

Progress and Planning Under Housing Act]

;

Thursday, June 13, 1946

-

..

This, therefore, indicates a

1945.

H

'■ '■

77"''7

"

',y

FINANCIAL CHRONICLE

THE COMMERCIAL &

3244

;

77.''-

7v,7'• \7;:'v'''7.,..:

77; 77

..

.

are

days.'*
behind

The "better new
Let's go ahead.

iVolume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4498

3245

be established..

Outlook for Trade With Italy
(Continued from page 3210)

tries that should

be asked to

co¬

Valtellina, Bardolino, Chianti, Falerno, to the great white
table wines of Capri, Soave, Coronata, Frascati, you have quite a

.

•'fully awake to the advantages of maceuticals; radios, etc.
The old
t industrial progress. !
V 77 7 ' <■ ,\ staple raw materials, like cotton
iThe average Italian is proud of and mineral oil, will continue to
the heritage which he received be important items in the expor¬
from .his ancestors but he is also tation from this
country, to Italy.
progressive* he likes innovations,
How Will Italy Pay?
improvements, new things, almost
as the
How are we going to pay for
average American does. He
likes them but lacks them. 7%7'fT all these importations? /~ How can
'»». History
and
economic
condi¬ we get the dollars which you will
.

,

v

-

tions

prevented, so far, a
great part of our population from
having access to all those varied

have to receive in return for your

•;

appliances, to all that wonderful

-«

equipment which in this country
are
owneld/and enjoyed by - all

schools, though we seem often to
forget in life, that there are only

•

s

•

<•

have

classes and which constitute, in a
certain senses the physical frame

goods?
We

three

7

/

have

all

sources

7

the

in

learned

from which a coun¬

mara,

choice of fine things.
Near to the
wines are the famous Italian ver¬
mouths.

I have found well estab¬

lished in this country the Martini

brand but there is at least another
dozen of good firms making ex¬
cellent

vermouths

which

be known in the States.

should

Talking

of

"aperitifs," I will not forget the
famous Campari, a bitter aromatic
drink which has become extreme¬

ly popular in Italy and which is
largely known and enjoyed in
..

Switzerland, France/Belgium and
England. < - ./ V
'
,77 i
j
.

>

Another great group is given by

Italian

liqueurs.

Many of your
boys began to make quite a study
of these products when living in
Italy. They will probably be able
to tell, you that the real classic

draw means to pay for
importations. These sources
of a larger and better life.
are
(a) exportation of goods; (b)
This serious shortage in our invisible
exportation
(tourists'
I requirements was substantially intraffic, shipping services, commis¬ Grappa, of wine grape/ properly
'•
creased by the provision of the
sions; - interest > from foreign jn- seasoned, can easily beat any
Fascist Government
which
re¬
brandy as an after-dinner liqueur.
vestments, etc.); (c) credits,
We also make Grappa from cher¬
duced, beginning with 1934, all
(a) Let us examine the first
? importations ■ to
one-fourth, of
ries, apricots, peaches, etc.-— an
group.
But before discussing in
what they had been in 1933.
ideal liqueur for ladies. We have
what way our future exportations
some other famous liqueurs like
7 -' It was made more serious durto the United States may be built
7 ing the war by the suspension of
I would like to note that not only Strega, Aurum, Cordial Campari,
all civil production. And to make
known all over the world.
When
the goods which We will export to
'the situation still worse finally
the American public will get to
this country, but also any other
came the destructions caused by
know them', I am sure they will
goods which we may export /to obtain a
the military operations.
permanent place at your
any other country will give us the
How are we going to provide
tables.
And to finish with the
dollars that: we need to pay you.
for all these needs?
subject of edibles I will mention
If we have to pay a thousand
A part of the supply may be
at last, the great variety, of other
dollars in New York it will be
Italian specialities like antipasti,
produced by ourselves; another
just the same for us if we export
Ismail part may probably be im¬
salted raw hams, salami, ancho¬
one
thousand dollars
worth of
ported from other countries; but
vies, stuffed olives, etc. There is
olive oil to an- American importer,
J
for the bulk of our requirements
Certainly a great future market
or if we sell Italian wine to Swit¬
r
the Italian market must look to
for these items in this country.
zerland, or Italian sulphur to
"the United States.
Passing to the garment indus¬
Britain, or Italian marble to Swe¬
den, as long as ■ through/these try the first place should be given
try

can

those

•

same

may

be

glass work (Ven¬
ice, Murano, etc.) for which there
is still a good market. \/77'.\ /

classic red wines of Barolo, Gatti-

people—bigger than that of the operate; automobiles, household
:r British Isles:;b^:bf ;France^:lS^III appliances
of all kinds; electric
; These
people may be conserva- appliances;
office appliances;
tive in many matters
(family chemical products; plastics; col¬
r life,
religion, education) but are ors; surgical instruments; phar¬
.

The

said for artistic

Italian / textiles

-

.

been

have.

always

imported here, especially silk

textiles

and rayon textiles.
value of many of

artistic

The

Another big line is represented
by what we call "artigianato"—
artisans' products.Tt comprehends

variety of 1articles for decora¬

tion, for personal use
or
for
adornment of the house.
Made of
the most varied materials but al¬
ways with

them.
we

artistic element

an

in

Especially in modern art
producing excellent things

are

in this field,

A good study of this

line, which is just appearing on a
large scale in the market, will
certainly repay the efforts of any
intelligent American importer.;
We

have

-

number'

a

of

other

-

•

•

Italy's Requirements

'

■

a

It would be impossible to make
fairly accurate list of those re¬

I

quirements,*
•

to mention

will

some

limit

myself

transactions

we

obtain the means

to secure the dollars for our pay¬

•

we

most

rebuilding of our transporta-^
system (railways, stations, ocean and in Europe, and they
were
further reduced when the
roads, bridges, etc.) and with it
Fascist
Government,
with
the
the rolling stock
of different
hope of improving our balance of
{types that goes with them.
Then the equipment required to trade, drastically reduced our im¬
We Italians learned then,
restore our communication serv¬ ports.
at our expense, that you cannot
ices
(telegraph and telephone)
V which have been seriously; dam¬ expect to develop your exporta¬
tion^!: if yod don't accept art in¬
aged during the war.
crease also in your importations.
Next to these vital items come
That you must import if you want
those which are required to put
to export, and that it is your im¬
/again in full production our agriportations that generally build up
culture (farming machinery and
the powetf of the other side to
implements, fertilizers, livestock
purchase your goods.
for the rebuilding of our cattle).
Italian exports are slowly being
Another important section
is
represented by all kinds of ma¬ resumed. They will gradually in¬
crease with the
improvement of
chinery and equipment for the
tion

■

still being produced and with
Barbisios

like

Italy has had for many years a

of the principal

of commodities

are

Borsalinos other excellent brands

ment in New York.

fairly good export business.
Our
urgently need.
"
/77;7f77§7f I exports began to suffer when
tariff walls began to be
First of all, the equipment5 for high
raised both on this side of the
the,
groups

to felt hats. The famous Borsalinos

'

,

>

also

are

hats.

ing

the

on

like good

market. Americans still

They are buying and chang¬
them Very dften.
Wifh a

proper

dising
become

With

hats

the

come

Italian-

gloves which have always
been imported in quantities.
And
to remain in the garment indus¬

try, fine lingerie like the ones you
can

find in Florence

or

in Venice,

which will always have the pref-

and

tasteful

of

ernce

commodities which should have a
much bigger market in this coun-

refined
'7

ladies.

hats

Straw

and

straw

.

articles

imported for years in this
country. This business will prob¬
were

work which

that kind of leather

Before I close
would

that

American will

of

No

other

beautiful

colors, in

splendid

country

stones

all

in

types

materials

hues

all

of

has

grain,

marble

To

of

Carrara

sculpture.
summary,
I will

close, this

mention

last

at

for

silk, hemp,

raw

linen, musical instruments, essen¬
oils;/perfumes, toys, costume
jewelry,; shawls, modern art, fur¬
niture, art products in general;
and the .list might continue.

tial

These exportations should
us

help

substantially in the payment of
imports.
Italy's Invisible Exports

(b) Another group of
which

will

whereby to
tions

is

give
pay

our

means

importa¬

represented

called "invisible

have

for

resources

the

us

by the soexports."
These

always played

a

great part

in

balancing our trade and will
continue to do so in the future.

this activity it would be well for

hotel

A

certain

number

of

factories

have been destroyed, though most
of the industrial plants of North¬
ern.

Italy

are

intact. In rebuilding

those factories
Will

be

our

manufacturers

anxious to obtain
from this country the best of the
best that American engineering
and

very

experience

has

evolved

in

each line. Our industrialists have

a

big demand; Italian cheese of all

kinds beginning with our famous
Parmesan and continuing with the
well-known

Provolone, Pocorino,

Gorgonzola,

Robiola

others
has

which

years.

we

have

one

always been modern and progres-

ing

Italy has

might continue. I will
only mention in closing some of
the other typical American indus¬




/:"

>

'

^

-

Cheese calls for wine. And here

Eive-minded.
The list

several

and

dairy industry
developed in the last thirty
our

items

of the most interest¬

for
a

our

very

future

trade.

large wine

pro¬

duction—not only do we produce
many

cellent

wines but
wines.

we

produce

From

the

ex¬

great

tery.
one

This has been for centuries
of

the

most

famous

Italian

productions and the latest genera¬

as

consider

the

American

of the most brilliant

one

expressions of

your

ius; and Ifeel
ing American

sure

national gen¬
that by join¬

capital, planning
engineering,
with
Italian
and service,
these

and

management
hotels

would

themselves

in

become

soon

another

attraction

to

Italy for the foreign tourists.
/ Another

(2)

item

invisible

of

export is shipping.

I do not know
what will be the final disposition
of the few Italian passenger ships
war has spared.
What¬
the fate that may await those

ships

I strongly feel the Italian
shipping business will have again
great opportunities on the seas.
The

popularity acquired by

our

famous passenger liners with the
American public, the increasing
business
our
freighters
were
handling before the war, the abil¬
ity we always seem to have to
operate
those services at
very
limited

costs, seem to justify en¬
tirely these expectations.
Here is
another

source

will

help
ports.

of currency

to

us

for

pay

which
im¬

our

/

_.

(3) A third item is represented
by services rendered by Italians
to foreigners here and in other
countries. V This group

includes a
great variety of items, from the
salaries
the

of

artists

our

commissions

abroad

earned

by

to

com¬

mercial agents; from the royalties

payable to Italian patent holders
to the copy rights, paid to Italian,
for

authors

books:

or

translations

of

their

their reproductions for

movies.

I would lastly include ift
exports all

(4)

this class of invisible

him to remember that

the

try contains so many attractions;
In Italy you find nature and his¬

regularity-

remittances

which

Italians
the pros¬
abroad 'or
foreign
citizens
of
perity of Switzerland was. orig¬
inally /built essentially / on the Italian descent are sending 1 to
their relatives or dependents in
hotel industry,
singly they 'are
Italy is in a much better posi¬ Italy.; Taken
tion for this trade. No other coun- generally small items, but the

tory/'scenery/and art. ' You -can
go from the most famous glaciers
of the Alps to the volcanos of

famous

most

cities

of

the

world

.

your

I

stores

our

,

from

chain of American-built

us a

and : American-operated
hotels.
Together with your splendid rail¬
ways and your great department

architec¬

for

ture, and this beside the classic

-

disappeared

the hope
enterprising "
to Italy- and

come

give

diers will want

day to come
back and show their families the
some

places
where
they
fought
so
bravely and the spots where they
enjoyed their rest.

of

these

remittances

their

and

great number brings
the yearly total to a;very inter¬

esting amount.
The

(c)
where

:

;/

third

>

great

source

:

country can find means
for their importations is
represented by credits.7 Credits
by themselves do not represent a
real solution of the problem.
The
country which borrows has always
a

to

pay

to

provide

interest

of the

for

and

the

the

payment

of

reimbursement

principal.

But there are
when the extension of

many cases

credit

by a richer nation is the
only way to help a country to get
again on her feet.
;
.,

'

have

this subject I

on

express
some

ever

such

••

to

to

day

some

splendid Italian marbles and

granites.

,

tables and for which there is such

like

visit Rome

in his life.

that the

••

dustry for the supply of essential
equipment.
.<

once

71 will mention particularly

ably develop again in the future.
Sicily, from the enchanting lakes
A big field for Italian exporta¬
of the north to the most beautiful
tions to America is going to be beaches of
the blue Mediterra¬
given by all fine leather work- nean; or you can visit some of the

food

who will not wish to
at least

the

situation and with the is
production of building materials
extremely well done in Italy. like Rome, Florence, Venice where
of
our
productive You cart have the best equipment
and for the building industry it- reactivation
the greatest treasures in architec¬
machinery. They will develop on for traveling
i self,
Italy will have to build in
(satchels, suitcases, ture, in sculpture, in painting are
a
real big scale and give new
the next ten years something like
bags, etc.) and you can have the collected for our education and
15 million rooms and to imple- impulse to our economy, if the most tasteful leather pieces: for
for our delights. 7 The finest thea¬
great markets of America and the desk/for the home, for* per¬
ment this extensive program in
tres of the world are in Italy,
Europe and those of the Com¬ sonal use (wallets, pocketbooks,
j the most rational
and economic
The country has other features
monwealth / will
be made more ladies' bags, belts of all kinds,
\ way modern American machinery
that make it an ideal resort for
is considered particularly neces- accessible, through a more liberal etc.).
7777 77 7'-- the tourist.
A population which
tariff policy and through a real
:
For the fine preparation of the is
sary.
hospitable, kind-hearted, simple
effective
reduction
of
the
A certain number of our. gas and
material, for the tastein colors, and alert; a good climate, great
plants and electric plants have many barriers which have ham¬ for J refined
workmanship : and wines, a traditional genius for
been destroyed. They must be re¬ pered in these last twenty years artistic design I have yet to see
cooking.
the flow of trade between nations.
built and the construction of new
anything in any country which
Americans have always visited
There are many commodities can come Up to the similar pro¬
: water
plants in the Alps, susItaly and they have always re¬
pended during the war, will have which we should be able to sell duction in Italy.
turned and lately hundreds
of
to be resumed; also in this field on a much larger scale in this
Another field yet undeveloped thousands of your boys have also
of our national reconstruction our country. First, the great group of
but with great potential possibili¬ come to Our country.
Olive oils which seemed
experts look to the American in¬ edibles.
I think that many of these sol¬
ties is that of artistic and fine pot¬
our

lastly, there will hardly
Catholic in this country

any-

ery.

(J) The first of these items is
advertising and ^merchan¬ given by the tourist traffic.
If
organization this should any one should be tempted to be¬
a great item.
little the economic importance of

made

(And
be

them,

the variety of their types should
secure for them
a larger market
when tariff barriers are lowered.

a

those millions of your fellow citi¬
zens
who
descend from
Italian
families.

is

This

the

situation

of

most

European countries. It is typically
the situation of Italy which needs
to rebuild her national

Your

country

has

equipment.

been

saving

Italy from starvation and • ruin in
the

most difficult, period of hear
history.Italians will never for¬

get what you have done for them.
We hope that you will complete
this
to

splendid work by helping

restore

us

the foundations of our

economic life, so that we can re¬
sume and increase production and

thus be able before long to pro¬
tradi¬
vide for our needs.
It will be a
earth¬
American edu cation is extend¬ great
day for my countrymen
enware^ both for home and for
Your universities when they will be able to return
decoration, are magnificent—de¬ ing every day.
sign, colors and style blend in multiply. But no culture is com¬ what you have given them in
giving the most beautiful prod¬ plete without a contact with the the hour of distress.

tions

are

tion.

Italian porcelain and

ucts.

continuing

America

has

that

always

been

great civilization from which we
come.
Nlany young Americans

largely dependent on importations
for these commodities.: What we

all

is simply to make the
acquainted
with
these
products of Italian art and Italian
taste and when the public knows
them a big trade will certainly

tory,

require
public

.

will

come

come

art,

Italy to study his¬
music and many will

to rest from their studies.

Another

which
come

will
to

Italy

section

of

Americans

particularly wish to
Italy is represented by

as a

Subsidiary Center

of American

to

We

have

been

dea

with

Italy

and with

with

two

countries

ing

so

7

far

America
which

exchanging tbmr nroducts.

(Continued

7

Industries

on page

3246)

as
are
-•

7
•

THE COMMERCIAL & FINANCIAL CHRONICLE

3246

tors

Outlook for Trade With Italy
grounds, spacious and commodious place and show rooms,
sive

(Continued from page 3245)
vBut Italy is. to my

mind somewith services of all kinds for the
thing much more important and
exhibitors and for their customers,
more
interesting j for American
efficiently organized and intelli¬
industry and for American trade
gently operated.
• '
than a good paying outlet for their
At the last fair which was held
surplus production and a good in 1939 over 5000 exhibitors were
supplier of certain commodities.
present from 35 nations. Visitors
Italy, and particularly its north¬ ran up to over two million. Nearly
ern
region,
is extremely well 200,000 business transactions were
fitted to become the operational closed
during the 15 days of the
basis and the subsidiary center of Fair.
American industries in continental
Already this year the Fair will
Europe. No other region is more reopen for two weeks in Septem¬
adapted for this task.
ber and by next year it will re¬
The geographical situation be¬ sume its regular season in the
tween
northern
and
southern month of April.
.;
The importance of this sample
Europe, between the western and
eastern countries of the continent, fair can hardly be exaggerated. It
and the two great ports of Genoa will be the first to be held in
and
Trieste;
the
climate;
the southern Europe after the long
abundance of electric power; the interruption of the war.
Merchants, manufacturers and
presence of important industrial
plants which may be easily ex*- business men from all Europe and
panded and improved; the plenty the Near East will attend, eager
of skilled and intelligent work¬ to study new products, to place

;

-

*'

Only

in trade in dispeople he does not

tant lands with

If
we
consider, however,
stupendous
expansion that

has

trial

brought to

the
the
indus¬

your

equipment and the enormous

increase

of

productive ca¬

your

pacity, it is easy to see that when
American production is resumed
in

be

full

will

it

take

not

long

a

just

-your

opioq,vand that would

my

n a r

wide

are

open

initiatiMrpr
set

y

bf

'

an extraorcircumstances

which may last if few months and
which majr never return. This is

the time to act.^jrf

'v

1

'

,

time before your industries, hav

ing

supplied

all
their

from

mands

the

de¬

arrear

domestic

cus¬

tomers, will be confronted again
with the problem of finding other
substantial outlets for their goods
in foreign countries.
j
is

It

therefore,

urgent,

that

:

Scarce Goods Abroad

'Mil of her neigh¬

countries

tovyour

Responsible

For Division of

offices and

your

only of domestic business,
at the mofhent when the

boring

Hold OPA

thing"'you should not

one

markets of Italy

d i

of

„

to sit still in

think

know.

war

do, in

iv.you

depri

;

vantage.

o^Venturing

idea

to

Thursday, June 13, 1946

24,000 Units of Sfock

(Continued from
for the most

J

3206)

page

charitable,

or

other¬

wise the best of
reasons, are de¬

liberately diverted from their In¬
tended

gain

for

purposes

officials

of

the

and

private
others in

.

strategic
positions of
who can be bought.;
;

Foreign

.

goods

is

«

for American

pressure

reported

authority

very

great ;at

the

Of

Preferr^Ufilifies i

Offered by Syndicate
An

moment. ;; Large
European
merchants, who do a retail busi¬
in the tens

of millions, npw
they are cut off from their
previous sources of supply in the
ness

that

offering is being made to¬ central European area, are re¬
of Preferred ported fighting among themselves
porters act promptly and take Utilities
Manufacturing Corp. con¬ for the limited quantity of
goods
immediate advantage of the fa¬
sisting of one share of 5%% cu¬ which they can obtain in America
vorable situation which I have
mulative
convertible first prd-*
through the use of their strong
outlined.
It is particularly im¬
ferred stock (par-value. $10 per
bargaining power, cunning
or
portant that a certain percentage,
share) and one sljare of common other; means.
:
even a small one, of the present
stock
(par value '10' cents per
No one-who understands mat¬
production be reserved by your
share) at $11.50 per unit by a
men; the very character of the
orders, to secure contracts for the
ters
is. exactly surprised that
factories for the export market. ;
group including CMlds, Jeffries & *ome
people which are industrious and future: with the best available
American goods, even some
If you cannot accept at this
Thorndike, Inc.; Minat, Kendall & of the scarcer
open-minded; ready to appreciate, sources of materials and goods.
commodities, ;are
I have been requested by the time important orders for early Co., Inc.; Coburn & Middlebrook;
anything that comes from Amer¬
finding .• their way to * foreign
ica; all these elements seem to President of the Milan Sample delivery, you may at least, by and Clayton Securities Corp.
shores. In fact, the feeling is gen¬
make of this zone the most suitable Fair to contact American indus¬ sample shipments which you can
Construction of a new plant for eral that
foreign pressure for
location for those American in-r tries and American exporters and make to your agents and dealers the
company at Danbury, Conh. American ; goods
will
remain
dustries which desire to produce to extend to them his cordial in¬ in Europe, by the display of your has been
virtuallynjompleted and strong for three to five years? /at
at lower manufacturing costs for
vitation to attend this first great products in exhibitions and fairs, the company is about to com¬
least. Unlike after the last war,
; the great markets of central and
peaceful meeting of the nations, by the distribution of catalogues, mence .operations therein. whe*r the United States does not have
and
southern Europe and for the en-r this first attempt of business men books
descriptions* inform all manufacturing activities will
to face a competitively strong in¬
tire region of the Mediterranean, L from all countries to rebuild in¬ the general public, and parties be concentrated.
Executive and
tact Germany in the markets/of
Already a number of the best ternational trade relations.
On larly your prospective customers main sales office is located at 1860
■

American manufacturers

and

ex¬

day of 24,000 unftfc

.

.

•

.

'

«

known

northern
of

organizations

American

themselves

established

have

>

in

behalf of the American Chamber

of Commerce for Italy I

Italy and operate some
modern and wellf

hope that this; invitation will be
widely accepted.

factories of the penin¬
These organizations do not

American industry and American

the

most

equipped

sula.
'

take away any

business from the
On the

industries in the States.

in many

contrary,
1
(.

where

cases

American imported products coulcl
not

compete with the local pro-?
or
with' imports
froip

duction
"

other countries where

is

cheaper,

best

production

American

these

able

tories have been

fac-?

get the

to

of the Italian market,

share

J to bring it within the influence of
methodsj
to spread the knowledge of, and a
taste for, American goods and apvpliances.
Still more, they have
; been
able
to
secure
important
orders from other countries, help¬
ing us to build up the foreign
currency needed f by Italy for her
American technique and

.

payments broad.;
r

*'

-

•

> ".I

'

*

J

<

)

operate for long years with many
of

these

firms

that

/you

tributed

few
so

and

I

in

assure

may

things

much

have
the

con¬

past to

establish your country so

This is

a

high in
people

great opportunity for

consideration

•

of

our

no

The stage is empty. Germany,
used to 'have- the? • lion's

tically outside
is

too

much

in

of

is

share

the Italian market and

in

ern

large portion of south
and eastern Europe, is out of

the

Europe; Paris
west; Berlin
But take, for

is out of the way.

a

very

There

is

no

by

lack

of

certain

materials which they used to

raw

from Germany and
rate of exchange.

get

high
will

be

absorbed

for

by the
France

some

time

by the many problems-of her in¬
ternal reconstruction.

But this favorable situation will

rious countries

can

va¬

not

will

last, and if American industry
not take advantage of it at

this moment and will let the

oc¬

I

hope that the leading indus¬
of this country will realize

tries

the importance of prompt action.

readily
easily meet to transact
It is quite true that most indus¬
their business and discuss their!
tries have a great arrear of un¬
affairs.
Besides, the city is just filled orders from the domestic
in the country where
Europeans market; it is quite natural that

»and

more

more

most like

days.

to

come

for

their holi¬

>

Above

all, Milan has one of the
important, best known, bet¬
ter organized Sample Fairs of the
old continent, only second for im¬
portance to Leipzig; with exten¬
most




products, you

withTtalr

ian firms whereby you can

firm- to.manufacture for your ac*
count your

products' according to
specifications and sell them

your
on

the Italian market in your own
and under your own

name

mark.

You may

trade¬
do still better;

you may enter into; partnership
with some of the best Italian
industries and thus enter at once

the Italian market; Many of those

industries' have fine plants, good
modem equipment, experienced
and

staff,

competent

skilled

labor

and

plenty
number

a

loyal clients. But they lack liquid

they

funds,
and

are

and

to

raw materials
anxious to improve

lack

also

perfect

methods.

their

You

production
give

easily

can

Go, Offers

•W:

..V-/-•

£v

-

..

A group of underwriters headed

by R. H. Johnson & Co.

on June
public a new
issue of 900,000 shares of common
stock, $1 par value, of U. S. Air¬
lines, Inc. at $3.25 a share. The
net proceeds are estimated at $2,-

offered

12

433,000,
be

a

used

to

tHO

large part of which will
capital for

for working

development, expansion and sales
The balance will be
used to pay a loan to the Bankers
Trust Co. of $250,000 and to pur¬
chase1 additional aircraft, hangar
facilities and supplementing

equipment.
The outstanding

capitalization
and you can of the company upon completion
get in return a good interest, often of this financing will consist of
a controlling one, in fine concerns
1.500,000 shares of common stock.
which will thus become a part of There Will be no funded debt or
your world's organization.
,
' bank loans.

the

idea of selling your goods to
American customers whom

your

you

know, who

on

whose

pay

promptly, and
you
have

good-will

always to depend for
is

much

average

your future,
appealing to the
business man than the
more

Progressive and far-seeing Ital¬
U. S. Airlines was incorporated
men are looking to a
in Florida in June 1944, to carry
more extensive collaboration with
on
the business of transporting
ian business

lines.

*

Most
are now

"

v

^

,

interesting

these

along

industry
'

•

'•

,

opportunities

offered to American capi-v

tal in this connection,

and it would

be

not to

mistake
advanatge of them.
a

great

take

see, in this transi¬
if exportation is not
possible, you may still do many
which
will
make your
things
products well known, which will
accustom the public to the use
of your
goods and which will

As

you

can

tional period,

establish

and

the

are

cult afterwards for your

diffi¬

maintained

between

Miami

New York and
Boston, and New York and Chi¬
cago with an intermediary stop
in
Cleveland.
Other regular
and

New

York,

include routes
between
points and Chicago via
Atlanta, St. Louis and Cincinnati,
and between Boston, New York
flights

felt

is

the

that

American

con¬

will have to wait just that

sumer

much longer to buy the things

he

needs and the wholesaler and Re¬

their

sell

limited

still

stocks

foreign customers.
If

had

Americans

to

-

British

the

psychology of being willing to
wait to buy the things they need,
and want to give their country; a

chance to put foreign trade on/ a
footing while chances are
for such an undertak¬

business • which
doing how
as
"extra
trade" to the general enrichment
the foreign

ing,

American

firms

easily

might

American

But the

of the nation.
need

are

serve

is great

and there is just a
question of exactly how much
longer Americans can wait for es¬
sential supplies.
v
The effect which the OPA has

of

driv'ng

some

of

the

which

of

out

the

country

commod'ties

scarcer

themselves

Americans

could

profitably use is quite evi¬
dently a feature of OPA price
regulations,
which
has
been
pretty generally overlooked and
which is deserving of more atten¬
tion, it is felt. The whole matter

illustrative of the way

is plainly
unseen

and, for the most part un¬

events,
caused by
governmental control
country's complex eco¬

predictable,
centralized
of

the

nomic.

hopes

the

system,
can
upset
calculations
of

the

and

citizen in the land and,
for that matter, to defeat the In¬
tent of the law itself, and even
average

'

of the lawmakers.

—

Lattner Industries

Florida

and

Common Stock Offered
Chapin

New Orleans.

&

Co.,

Mich.,

Detroit,

on

SAN

CALIF.—
Co., 155 Montgom¬

FRANCISCO,

S. Strauss &

Street, announce that
elephone number has

ery

competi-. rhariffprl

to

F.xhrook

8515.

their
been

June 10 offered 100,000 shares

of

New J, S. Strauss Phone

.

dations that it will be very

Regular flight schedules

shippers.

good name

of your firms on such solid foun¬

air under contracts with

cargo by

the ascendency of your

trade-marks

sizable

favorable

-•v. -

them what they lack

American

<

"trickle" is

sound

U. S. Airlines Stock

of promotion.
of

.

the company tailer will be
caught in a vicious
had been engaged* in the design;:
squeeze of
circumstances,-being
develoDme^t,
and
installa¬
forced to sit on
the
sidelines
tion of oil burning equipment for
while
American
manufacturers

.

other!

city where people from these

export Vat this

make arrangements

can

•.

«

inception

Johnson

a

-Yugoslavia.

oth^^p^liers.

cannot

you

moment the finished

its

supt- heating, power fand cooking, and
ply certain parts and let the Italf accessory equipment and manu¬
Britain is making a
factures a complete line of unit
ians complete the' Construction
valiant effort to recapture export
steam generators.
under your drawings and direcf
markets and in a year or so she
tions and sell the product under
may. again be on the spot.
The
Or you
Swiss are giving much attention your own trade-mark.
to the Italian market but they are may grant the license to an Italian

city like Milan.
It is casion go by, others will step in,
*;2' hours by train from the great and later you will have to fight
port of Genoa, 1 hour from the' very hard and make every sacri¬
to
Swiss border, 4 hours from France,? fice
acquire
those
markets
'4 hours
from
Austria, 7 hours, which today could be yours with
from
a very limited effort.
Germany,
8* hours
from

instance,

If

Since

picture.

in

prac¬

the

come

the^turevwith

which

*

London

will

other time has'American

<

iMediterranean.

these potential cus¬
to know how

sooner

enjoyed such favorable
conditions to take a firm hold and

-•

today-

However, if it is true that the

a steady one, and; a
quantity of the scarcer
commodities
is leaving quiefly
will be used to purchase machin¬
but nevertheless effectively from
ery and equipment for the new our
shores, because of the price
plant at an approximate cost of
competition . which
American
$50,000, and the balance added to merchants
must face in the world
working capital. V V
market by reason of the OPA, it

well you can take care of their
problems, how efficiently you can
Preferred Utilities Manufactur¬
provide for their needs, the less
likely they will be to accept an ing Corporation, originally named
to secure a magnificent part in
inferior article from some othe^ "Industrial
Products Company/'
the great markets of Europe and
source or to bind themselves
foj* was incorporated ?On July 28, 1920.
the Mediterranean.

At

.

•

instruments.

The

the world

as

your

industry

Only American industry with
its powerful resources, with its
as these brilliant outposts of your
endless range of productions is able
splendid industry.
'.
'
\ Finally, if we go back to con¬ today to give Europe, and particu¬
sider the exportation of American larly Itaxy, what they urgently
need. I
Psychological
conditions
products made in the States, Italy
are particularly favorable.
Never
^appears to me exceptionally well
in history has America been so
fitted for her particular conditions
to become the great show win¬ high in the respect and affection
of the Italian people.
American
dow, the most appropriate and
attractive center for the display leadership in science, in the great
field of industrial production, of
of
American
products and
for
technical management, of inven¬
their
distribution
in
the
great
markets of central and southern tion, is not only readily recog¬
nized but sincerely welcome.
•
r,
Europe, the Near East and the
the

to the kind and quality Broadway, New York City with a
goods, the perfection of branch sales office in Boston,
your appliances, the precision and Mass.
simplicity of your devices and : Proceeds from * the financing

irvJtaly,
of

tomers

enterprise.

handicapped

■>

-

-

It has been my privilege to co-r

,;y

earnestly

common

dustries,
share).

stock

Inc.,

at

.

of

Lattner

par

($1

"

In¬
per
;

proceeds are to be Used
for
general corporate purposes,
including expansion of the corpo¬
The net

ration's business.

/

Volume 163 -Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE

3247

national securities association

depends upon the will of the
Commission, it will respond when persistently urged to do
so.
The paid executive personnel of a national securities
• (Continued from page 3199)
association knows the continuance of its tenure depends upon
investigation has not already been made is due entirely the life of the association.
1
'
'
'
to lack of
adequate manpower."
;
If a national securities association passes a regulation,

Siamese Twins

7.

V;

.

trial balloonist extraordinary of
Commission, is again threatening the securities industry.

even

v

to

arrogate to themselves

: What is this evil that

t;;

In

•

some, more power*

so

effect, it is nothing

moreor

offerings

and the securities

this

■

make whole the resulting

with a
do nothing, to

(Special, to The financial Chronicle)

custom

BOSTON,

with

connected

INI AN APOLIS,

Chronicle)

MASS.—Francis

Flynn and Julius K. Ober

(Special

are

X

how

has

Kemper

an

by has been, added to the staff of
F.

a

S. Mosely

& Co., 50

Congress

ert

Chronicle)

with

Chronicle)

Financial

Chronicle)

:

t BOSTON, MASS.—John J. Mar¬

1

BOSTON, MASS.

—

Chronicle)

to The Financial

JACKSON, MICH.—David A.

Sommers

is

connected

now

with

Frederick

Trask

Baltimore

the U. S,

CLEVELAND,

OHIO—Earl

R.

(Special to The Financial
<

Evans and Richard E. Gibson have

" Co., Inc., Union Com¬
Building, after serving in

LOS

Bruce

&

with

;

;

LOS

Sixth

-

(Special to The Financial

?

Conrad.

West

530

Co.,

Street.;'
i

is

Harper

ANGELES,

~

D, Newton is with Hayden, Miller

supplement is not adopted,; the Commission may alter
those rules of its -own motion.
7'
Finally, the; Commission is empowered to suspend a
national securities association and also to revoke its regis¬
tration, a sweeping authority,5 that hangs like Damocles'
or

and "supplement

-v

Company,,

&

Street.

Co., Union Commerce Building.

1

.

(Special to The Financial Chronicle)

-

CALIF.

650

7.

;

South
•

.,

;

CLEVELAND,
OHIO — Mrs.
Evelyn S. O'Connor has joined the
Commerce: Building. Mrs. O'Con¬
was
previously with Ball,

to The

Chronicle)

Financial

CALIF.

DIEGO,

John

—

Diego Trust & Savings Building.
'

-"(Special to The fmanrtal'

dhronicl*)

j

7

I SAN DIEGO,'CALIF.—Stanley
Kitto

has

connected

become

Diego Trust

Savings Building.

—

with

r

The:Maloney Act knits them together as Siamese Twins.
The one breathing and being wholly dominant is the SEC.
representative of

the Commission to

"request" a national securities association
to do anything, for the Commission has the
power to impose
those "requests" in the form of rules upon the association. 7:
;
Fortunately, in the instant case, "preferential allot¬
be contrary to the law.
the Commission is powerless to
edict in the form of a rule against it.

7

.

;

pass any
-

Marxer

Building.

&

Co.,

..

is

now

with Ilolton,

West

210

Co.

&

Seventh

Street.

with

—

LOS

;

bert

CALIF.—Gil¬

ANGELES,

W. Judge

Chronicle)

has

become

con¬

nected with E, F. Hutton &

C04

623 South Spring Street.
(Special to The Financial

LOS

.

,

Chronicle)

ANGELES, CALIF.—Gil¬

Merrill

Lynch,

Pierce, Fenner

&

Beane, 523 West Sixth Street.

DETROIT,
Martin

has

f

Chronicle)

;

of

,

Chronicle)

HARTFORD, CONN.—John B.
Bain, Jr. and Charles E. Thenebe

MIAMI

is

with

BEACH,

Thompson
Blair

F.

is

Leo

Schoen-

Glen

—

R.;

;

connected
&

Co.,

...

value

1892. >:■;

,7 :7 j
offering was part of a plan
recapitalization
which
has

The
of

.

its purposes the
of a simple capital

substitu¬

structure
consisting of a single class of
common stock in place of the four
classes of preferred stock and two
classes of common formerly

exist¬

ing and the creation of additional
capital required for increasing in-?
ventories, expanding the business
and
financing an expected in¬
crease

At

in credit sales.

present

the

company

op¬

six

retail

stores

and,

through
stores

a

subsidiary,. two retail

known

Dealers'

as

Outlets."

"Furniture
The

company

sells furniture ahd home furnish¬

ings, carpets, rugs, electrical and

(Special to The Financial Chronicle)

MILWAUKEE,
H.

FLA.—Henry

now

June 11 offered 100,000

and represented the first public
offering made by the chain store
enterprise since its founding in

erates

Chronicle)

Claybaugh

421 Lincoln Road.

have become connected with Put¬

Company, 6 Central Row.

chronicle) \>.

ANGELES, CALIF.—Saul

Weislow

with

&

Pacific Company

(Special to The Financial
r-

to The Financial

with

(Special to The Financial

LOS

S.

nam

—

brun, 1273 Westwood Boulevard.

Paine, Webber, Jackson & Curtis,

.

will ask, is it possible for the Commis¬
sion to have a voluntary securities association do what the
Commission itself may not do, and why?
r'
: >
The how is easily explainable.
Since the very life of a

CALIF.

California, 623 South Hope Street

Penobscot Building.
(Special

ANGELES,

on

among

(Special to The Financial Ghbonxcle)

LOS

MICH. — John K.
rejoined the staff of
-

CALIF.

L.

$1 per share, of Michaels Bros, at
$8.25 per share. The issue was
oversubscribed on the same day,

tion

;

C.
(Special to The Financial

Willard

7 Burr & Co., Inc., and Reynolds

bert L. Reed is now affiliated with

Com¬

&

Chronicle)

Jr.,

shares of common stock, par

Harris S.

Chapzn

Barnard,

Sold a! $8.25 a Share
& Co.

(Special to The Financial

'

is

Penobscot Building.

Financial

FRANCISCO,

Michaels Bros. Stock

Chronicle)

Lewis S. Snyder has become con¬

V;

DETROIT, MICH.
Snyder

(Special to The

SAN

CALIF.—Julia

ANGELES

Eastman

Hull

Penobscot

(Special to The Financial Chronicle)

pany,

California

464

Company,

Street.

Harold *D.

(Special to The Financial

LOS

nected
-

Trust

Seventh Street,

Burge & Kraus and the Cleveland
Trust Company.
'

;




(Special

SAN

Spring

nor

ever

•

you

,

&

—

a

/

Chronicle)

Financial

MINN.—Clarence E.
McCarthy is with Feromack Se¬
curities Corp., Pioneer Building.

—

t.

If that is so,

thereto with Greenman &
Co., and Mannheimer-Caldwell.

prior

with Hope & Co., San

<

-

,

as

Endicott

Co.,

Hardin, and
(Special to The Financial Chronicle)
A. McMicking are with
LOS ANGELES, CALIF.—Ross Henry
Dean Witter & Co., 45 Montgom¬
Murray has been added to the
' .
staff of Flynn & Levitt, 411 West ery Street. :

A.

Act it is

statement.

&

.

again
(Special to The Financial Chronicle)
a
DENVER,
COL.
Arthur
F.
voluntary
Bosworth has rejoined the staff of
b9dv then we say that all language has lost its significance,
Bosworth, Chanuite, Loughridge &
i t ; .The
threatening "or .else"! attitude of Mr. Treanor is
Company, 660 Seventeenth Street,
sickening, always leaving in its wake the inference, if you after, serving, in the U. S. Naval
don't do thus and so, we will lay it on much more
Reserve.
1
heavilyi
7 /Although festooned with the terms "public interest"
(Special to The Financial Chronicle)
and "the interest of investors," we believe no student of the 1
DENVER,
COLO. — Glen ~ H.
Oakes is with Amos C. Sudler &
Maloney Act is deceived by what :it does. We believe too
Co., First National Bank Building.
that the progressive members of the NASD Governors also
jrdcognize its true import. ; '
(Special to Toe Financial Chronicle)
One of our correspondents has suggested that the NASI)
f DETROIT, MICH.
Frank H.
is' a subsidiary-of the SEC. This is a conservative under¬ Stearns has become associated

ments" do not appear to

Jamieson

Building. He was previously with
First Bancredit Corporation, and

Casad,

staff of Wood, Gillis & Co., Union

national securities association is

It sounds ludicrous for Treanor

MINN.—Keith K.
Knopp has been added to the staff

F.
Chronicle)

;

The SEC may request the NASD to adopt
any specified
alterations or supplement to its rules, and if such alteration

Maloney

Chronicle)

Financial

PAUL,

It. Ehrich is with Hope & Co., San

Chronicle)

under the
No rules may be Building.; J,
(Special to The Financial Chronicle)
passed without the approval of the Commission, and it may V
7 LOS ANGELES CALIF.—Earl
(special ttf" THe Financial Chronicle)
by order abrogate any rule of a national securities
CLEVELAND, OHIO—Edward E. Wright is with First California

analysis of the

v

.

P. George F. Jacobsen has joined fhe
(Special to The Financial Chronicle)
Cavano, Jr. is now with Gottron, Staff of Carter H. Corbrey & Co..
9 SAN FRANCISCO, CALIF. —
Russell & Co., Union Commerce 650 South Spring Street.
John E. Buick is with American

control

association.

Chronicle)

Financial

916

ANGELES, CALIF.—Nel¬

V.

son

&

erson

:

sword.

(Special to The

Ave., after serving in
Army Air Corps.

Co., 50 Congress Street.

Company,

(Special to The Financial Chronicle)

^

to The

ST. PAUL,

Snider

(a) register with the Commission; (b) file a registration
the armed forces.
as is
prescribed by the Commission;
(Special to The Financial Chronicle)
(c) restrict membership on a basis which appears to be neces¬
;! CLEVELAND, OHIO—John
sary to the Commission.

complete

to The Financial Chronicle)

I KANSAS CITY, MO.—Laurence
B. Carroll has rejoined Prescott

Miller, Jr., is nowwith Spencer Wright,
&

William L.

—

LOUIS, MO.—Walter H. H.
is with Slayton & Co.,

(Special to The

(Special to The Financial Chronicle)

l

LOUIS, MO.

ST.

of
to The

Financial. Chronicle)

Inc., Ill North Fourth Street,

Merrill

Lynch, Pierce, Fenner & Beane,
116 West Forsyth Street.

statement in such form

has

is

Breen

E.

(Special

Maloney Act of the rules of the NASD.

S.

FLA.—Rob¬

Franklin Street.

national securities association must

-

•

to The

(Special

gin, Jr.has become affiliated with H. H. Butterfield & Co.* Jackson
77 City Bank Building.
investi¬ F7;Ii. Putnam & Co., Inc.,

merce

Commission

Inc., 8 Easi

Street.

told

"evil."

U.

previously in the U. S. Army.

ST.

JACKSONVILLE,

become associated with H. L. Em¬

then,

the

T:..

Schaefer

BOSTON, MASS.—Albert Cros¬

(Special

was

•

Co., 406 Olive Street. He was

&

—
G. E.
added to the

(Special to The Financial

violated.

Under the act

ST.

Hooper-Kimb&ll, Market Street.

—

How

Chronicle)

Financial

serving in

after

(Special

1ND.

been

staff of Fisher & Co.,

(Special to The Financial Chronicle)

dragooning the NASD is no novelty.
This makes, "self-regulation" a mockery.
Those who adhere to the tenet that the whole
subject
pf fair trade practices in the securities field is one for selfregulation by the industry have but to examine the Maloney
Act for a bird's eye view of how this volition is
being

*

The

Locust Street.

something about the insider

the Commission would conduct

an end to this

a

to

MO. — Kenneth P.
Lagree is with Fusz-Schmelzle &
Company, Boatman's Bank Build¬

Inc., 3 5 Congress Street.

The SEC

an

with Macart-Jones

Weiss is with John R. Kauffmann

(Special

If after

now

ST. LOUIS,

HARTORD, CONN.—Charles D.
Flagle is with Henry C. Robinson
& Co., 9 Lewis Street.

NASD.
in substance that unless it did

H.

Co., Thatcher Building.

&

Chronicle)

(Special to The Financial

:

of F. L. Putnam & Co., 77 Frank¬
lin Street, Boston, Mass.
(Special to Tat Financial

The National Association of Securities Dealers

>'

Chronicle)

Financial

COLO.—William

LOUIS, MO. — Edward J.
Canavan has joined the staff of
Herrick, Waddell & Co., Inc., 418

;

haywire, he does so with a
Vengeance.
•
;777 Amongst others, Treanor's rebuke was addressed to the

claimed that

to The

Ranson is

(Special to The Financial Chronicle)

When Jim Treanor goes

The

Arcade, after serving in
'
;
' \ ■

ST.

nelly h&s been added to the staff

.

c

Baker

ing,

BERLIN, N. H.—Harold F. Don¬

parity of reasoning the Commission should adopt
'■& hands-oti
policy when firms selling new issues as original
offerings do so pursuant to the well establislied trade cus¬
toms and usages in the industry by first
providing for the
.requirements of their existing customers.

'

71

(Special

industry alerted to resistance.

-

can

losses!

asso-

the U. S. Navy.

Navy.

a

gation to put

become

has

Flynn

PUEBLO,

new

When underwriters find themselves "bagged"

allotment

MINN.—Wil¬

.

(Special to The Financial

sticky issue, the SEC does nothing, and

;

D.

Chronicle)

Financial

cited with John G. Kinnard & Co.,

cater.

^ddd;'sb^/';';;77

By

liam

"voluntary features."

less than the existence

the underwriters of

equivalent *of the every^-day Commercial prac¬
tice by merchants who
give considerate treatment to their
^larger customers because it is economically niore profitable

'

pass,

The fiction
of
a
voluntary association, sometimes
coupled by those whose purposes it suits with the Maloney
Act, imposes no such restrictions.
The Commission's instant activities must be combated

"

j

within its alleged

powerless to

It is the

7v

Company,

.

disturbs Mr. Treanor?

©1 preferred customers to whom

to The

MINNEAPOLIS,

The SEC is limited by statute.

it *isn't, this same Mr. Treanor and the
Commission for
which he speaks will see to it that it is made so.
: ,
These 1'crusaders" with drawn sword are on the march
'

which the Commission is

one

comes

His statement contains' the implied admission that what
he terms as "evil" is not contrary to law, but despite this, if

;

&

,

,

Here Mr. Treanor, the

>

»iii©

Dalton

F.

(Special

f

.

.

Gardner

735 North Water Street.

WIS.—Kenneth gas appliances, refrigerators,

Givan has joined the staff

of

radios, washing machines, etc.

I.

'

(Continued from page 3198)

v ;

*

' 1

v

the major premise that it is the. pre¬
rogative of the member nations—as victorious allies—to forage about
the world to investigate both the past and present records of sover¬
eign governments and root out those whose past military record may
not satisfy them, as well as those ciirrent regimes whose form is not
consonant with their own professed ideologies.

ering the entire matter

rft'*

'

;

*~J

i

,

*'

**'

ft

i

J

iV/i ;f"\

t

♦

'

♦ Vi

,1-i
'

,■>

f

*

{

v.

,

j •' -V

'

~,v

)■}

i

')

\l

*

-«i

t

»«*'<

<

Spanish Government's being castigated as not "peace lov' ing," as "a potential threat to peace," as barring free elections arid
freedom of assembly. Apart from the embarrassing query how this
differs from tne exhibited conduct of the chief accuser, • the So vie*

that

John F. Dulles

*

'

^

-

of the

main

1939 Pact with Hitler, conversely we are now

own

conviction and probable
Mikhailovich,. former wartime hero of
Yugoslavia, in return for his trouble in having heroically led his
Chetniks in actual battle against the Nazi invaders.
It is indeed
faced

with

the

Moscow-Tito

imminent

*

*

*

public's growing realization of the actuali¬
ties, and its consequent disillusionment and loss of faith in the United
Nations organization.

(a) the expansion,

*

*

^

•

by appropri¬

ate international and domes¬
tic

measures; of production;
employment and the exchange
and
consumption of goods,

•:

which

the material foun¬

are

of

dations

the

liberty

and

welfare of all peoples,

a

professed ideological faith of nations will continue to be

permanent source of controversy in UN is indicated once more
in the Economic

week's argument

this

whether

possession

reduction

the policy of the Gov¬
ernment of the United States
to seek cash reimbursement

r

to

from

have

since

nition uf Argentina,

,

,

incite recurring argument

along the

become

purged

therefrom,

is

now

and in

of World
War II,
excluding amounts
still
payable for lend-lease
articles covered by cash re¬
imbursement lend-lease re¬

v'

exhibited in the Russian recog¬

Then too,

the more the standards for action are hazy,
stimuli to internal dissension will thereby

be provided.

■
*

-

This wrangle over

' *

*

*

The term

to be instituted by the

all-inclusive worldwide
"

*

*

*

The appointment of Senator

organ¬

"

(a) to the Government of the Re¬
public of Turkey, or
any other government and
retransferred to the Govern¬

ment of the

Warren R. Austin to succeed Mr.

Council,

at

home—is

is

this

most

inclusion

of Senator Vandenherg in the councils, for the
latter's original designation was routine because,
influence

the

Senate's Foreign Rela¬
importance of bi-partisan¬
ship as a motive is underlined by the President's
overlooking of such capable and/or politically de¬
sirable Democrats as Secretary Wallace, Robert

tions Committee.

or»

Agree¬

through

exchange of notes which shall
Ankara as soon aS

take place at

possible.
DOne at

in the

Of Herschel JohriSOIl.




4,500,000 United States
dollars within thirty (30) days af¬
ter this Agreement has been exe¬
cuted. This amount is in payment
for
:% <,
1
•

United

4

States

key, the

R.

Austin

recover

:

at

Republic of Turkey

midnight

Fuller Offers Fidelity
Electric Stk. & Warnls.
A

headed by S. D.
including James

syndicate

..

Fuller & Co., and

Vermilye

and

Co.

&

Cleland

D.

Brothers, will offer tomorrow 74,500
shares of class A common

stock, par value $1 per share, of
Fidelity Electric Co., Inc., Lan¬
caster, Pa., at $4 per share.

for ad-*

predecessor company and
ditional working capital.

determined

Hull

Barnes With Holton,

such defense articles 4 LOS ANGELES, CAL. — Louis

States,

have not been de!?. stroyed, lost or consumed, and
1; as shall be determined .by the
President to be useful in the

1

ment

as

defense of the United States
or of the Western Hemisphere,
or
to be otherwise of use to

■

the

v

proceeds will be used
for repayment of a bank loan, for
acquisition of the assets of the
The net

at the end of the pres¬

transferred under that Agree-

i4

United

States.

Although

Barnes

B.

&

Hull

is

Co.,

Holton,

with

now

210

Seventh

West

Street, ,members of the Los

An¬

He

was

geles

Stock

Exchange.

previously with Van Denburgh &
Karr and

prior thereto with Con¬

rad, Bruce & Co.

;

.

the Government of the United

4 '

States does not intend to ex¬
ercise generally this right of
recapture, the Government of
the

United

States may

exer-

proced¬
ures to be mutually agreed, at
any time after September
1,
1945, with resnect to lendlease articles, other than those
cise this right, under

•

on

HASAN SAKA

v

by the President of the United
'

in the possescontrol of the.Gov-

tributees

Government of the

United States has the right to

•

has

[ ernmentof the Republic of
Turkey, its agents or dis¬
Warren

of

and

were

or

Republic

ernments of the United States
of the Republic of Tur-

•

^

%

,

sion

in

Mutual Aid Between the Gov-

not*received any payment;
and

the

ent emergency, as

of

(ii) which

of

now

control of the

ARTICLE IV

lic of Turkey will pay to the Gov¬
ernment of the United States a net

the

or

(a) Under Article V of the Agree4'
ment dated February 23, 1945,
on the Principles applying to

The Government of the Repub¬

of

articles

lend-lease

possession

ARTICLE II

~

Jackson, Sumner Welles, and Claude Pepper; and
by the necessitated service ; of an interim ap¬
pointee and makeshift arrangement, in the person

full, title to all arf
paragraphs (a)
of Article II hereof, and

the

Tor the Government of

usey

United States has been fully re¬
imbursed.

(i) for which the Government '4

The

or

(b)

all

to

:

welcome.

the

than

sition

1

(a) all lend-lease articles in the
' categories
of machine tools
i : 1, and other productive machinery,
locomotives and other
railroad
rolling
stock,
and
load-carying
trucks of
IV2
4
ton and greater capacity.

choice. The President's selection of a Republican,
demonstrating the bi-partisan unanimity
of our foreign policy—in contrast to our bitter
warfare

Republic of Tur¬

,

again

his

an

without qualification as to dispof

key.

sum

"stalwart," if somewhat surprising,

significant

as

the Act of March 11, 1941:

UN

4:

United States Representative on the Security

come as, a

'"lend-lease article"

of the United States under

ment

controversy over the eligibility

measures

military alliance, in contrast to an

.

of

ARTICLE VI
The effective date of this

The Government of the Repub¬
of v Turkey hereby acquires,

.

for which the Government of the

(b) to

*

ization.
■

more

against the other.

lic

used in this Agreement means any
article transferred by the Govern¬

agencies Both kinds of exclusion accentuate the quality of political

Far

out

and

waived,

hereby

are

neither government will hereafter
raise or pursue any such claims

Turkey, its agents or distributees,

ARTICLE I

the potential disqualification of organizations,

additional to last week's

of non-UN nations for the relief

internecine

arising

Government

above.

Are agreed as follows:

,

.has

govern¬

spirit of the principles

mentioned

Certainly there

sympathies," to fit the deep-seated political

the correspondingly greater

as

ment,

Ankara, in duplicate,
English and Turkish lan¬
guages, each of which shall be of
equal authenticity, this 7th day of
quisitions heretofore filed by
May, ,1946.
the Government of the Re¬
For the Government of the
public of Turkey.
United States of America
ARTICLE III
'
EDWIN C. WILSON

measures,

ments

fact

to twist objective judgments about factors so

"Fascist

motivations.

Stettinius

Government to the

one

other

Declaring that the recent Agree¬

become contaminated by Fascist sympathies,

will be the same tendency, as

„

governments, all other finan¬

ment shall be established

(c) The net amount of claims due

(b) to afford to each other ade¬
quate opportunity for mutual
consultation
regarding
the

two

thei

tracted negotiations between
two

from the Government *of the

Republic of Turkey.

vestments which would pre¬
judice the objectives of such
a
conference and,

the

control of the

been

and

(a) to avoid the adoption of new
measures
affecting interna¬
tional trade, payments or in¬

un¬

cial claims whatsoever of one gov¬

for which the Government of

Declaring it to be their policy

between

or

the United States has not been

other trade barriers,

ment

1945,

reimbursed but for which it has

the

certain

exactly what may be meant by "Fascist association."

%r

In consideration of the

-

with the

they

course

outside of Turkey) where the
liability for payment has heretobeen acknowledged and the

ernment, its agencies and instrui
mentalities, against the other gov¬
ernment, its agencies and instru-4
mentalities, which (a) arose out
(b) All lend-lease articles (other of
lend-lease, or (b) otherwise
than those covered by requi¬
arose on or after March 11, 1941,
sitions calling for cash pay¬
and prior to September 2,1945 out
ment) transferred to the Gov¬
of or incidental to the conduct of
ernment of the Republic of
World War II, and which are not
Turkey after March 11, 1941,
otherwise dealt with in this Agree¬

and

is

present Spanish pattern, in coming to decisions as to whiclL organ¬

is of

sur-

lic of Turkey, its agents or
distributees.

velopment i and the International
Monetary
Fund
are
consonant

rule

as

as

the agreements on the disposal of
chrome stocks recently concluded

tides described in

izations have actually

nebulous

of

dertakings in this Agreement, and
with the objective of arriving at
as comprehensive k settlement as
possible and of obviating pro¬

i

of tariffs

aforementioned

1,

or

Bank for Reconstruction arid De¬

participate in UN programs. At the insistence of

from economic and social activities.

whether

the

Government of the Repub¬

passed barring countries with "Fascist associations"

was

a

between

arising out
arrangements (such

and

delegate^Nikolai FfeOnov, and after ft long wrangle/ a

the Russian

Such

to

(a)

plus property located both inside

covering civil aviation and
the application of the Government
of the Republic ' of Turkey - for
membership in the Interhational

shall be eligible to

.

as

claims

and the sale of United States

thereafter passed into the

international commerce, and

(c) the

by

with the Fascists

collaborated

which have

organizations

resolution

and Social Council,

Stassen

j By-passed

September

r

That the

Harold E.

3210)

page

(b) the elimination of all forms of
discriminatory treatment in

worst result of this is the

*

governments in the
future in the interest of

near

in Latin America. Perhaps the

e^t in making further penetration

paragraphs

governments

existing

Since then Mr. Dulles has

other

with

i?sue of her attempted barring of Argentina from the

ideological somersault is Moscow's political inter-

two

thrown in his

"Principles applying to Aid under
the Act of March 11, 1941," their
agreement to confer together and

hard-boiled

motivation for this

in

ARTICLE V

Financial

Turkish Lend-lease Settlemeni Agreement

*

United Nations
"Organization.
The advent of Peron by no possible stretch of the
imagination lias made Argentina less "Fascist", nor more suited to
UN, than she may have been a few months ago. The only possible

described

?

described

in

paragraphs ;(a)

Cole Hoisington

Affiliated v

With John M. Tittle Co.
Cole,

Hoisington

Incorporated,
ants

120
has

and

investment

Broadway,
become

Company,

&

economic
New

affliated

consult¬

counselors,

York

City,

with

the

Chicago investment counselor firm

"

and

(b) .of Article II hereof,

which,,

as

•

♦

ments.

examples of "confused ideology" resulting from

political motives, Moscow's' recognition of Peron's
Argentina must take the undisputed first prize—with no runner-up.
With the same arguments that Gromyko is now using against Franco
Spain, Moscow up to this very moment most persistently and
bitterly, carried on a feud against,the "Fascist" Argentine Govern¬
ment—as evidenced at San Francisco when Russia made a most vital

consumed.

smartness?

-

the

or

method of computation mutually
agreed are not covered by this
settlement as they will be settled
in accordance with such arrange-*

difficult to please!

all

*

fore

execution of General Draja

•But of

lost

'

likewise

(Continued from

reasons

early part of the war—his collaboration with the Axis dictators,
Apart from the hypocricy of Russia's self-righteousness on this, as
exhibited in her

ius.

the

4''4 and (b) of Article II hereof:
to any third country, *

given invaluable aid to Secretary Byrnes in his trials and tribulations
Foreign Ministers, Both these men have had theif
great equipment successfully tested in extended UN experience.
Is there possibly going to be a Truman policy of making appoint¬
ments to desirable posts from the ranks of Congress—as political

'

advanced for blackballing Franco's
Government is because of the black mark for his conduct during the
One

were

re-

to

Republic

4 of Turkey, are not destroyed,

"having

Dulles

the

in the Council of

*

•

'■

:\v

Mr.

his

to

of

.(b) The Government of the Re¬
public of Turkey will not
transfer or dispose of lend1
lease articles, other than those

lap by
then-Secretary of State Stettin¬

Overlooked

*

stuff."

attesting

requesting

communicated

Government

a

proved himself at San ^Francisco,
in
settling a score of knotty
problems and saving situations

44' The

-

in

the

all
the
alleged transgressions call for- punitive action.

-

As

notice

turn is

observers have been most volu¬
ble

Union, it must be asked how an international body acting at
administratively and judicially, can set permanent standards for

Spain sub-committee's report, which will be discussed
both; by the Security Council now and ad infinitum by the General
Assembly in the Fall, being a smoke-screen for national political
interests, is a compendium of double-talk. The conclusion arrived at
by the, committee is that Spain now is not a threat to international
fteace, but that she is a potential threat. She is hot a threat in the
month of June1, but she will be in September.
But if she is a poten¬
tial not a present, threat, the logical recommendation should be not
to recommend measures for the future, but to have a committee
examine the situation every month or so to determine the exact
conditions as they actually exist.

Dulles.

to the San Francisco
Conference, Captain Stassen (on
temporary leave from the Navy)
functioned
brilliantly both in
resolving the most difficult tech¬
nical matters, as well as with
respect to the broad issues. All

The

point at which such

Foster

'

delegate

•

*

John

and

on

'

'■

which

the desirability of the quality of Republicanism in
representative, it is, however, not clear why two proven and
brilliantly equipped members of
that party were passed over, in
the persons of Harold Stassen

Assuming

>

our

4/

Thursday, June 13, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

3248

of

the

date upon

of John*M. Tittle & Company,
South La Salle Street.

.

'

105
.

"

■

.Volume 163

Number 4498

Silver

■

THE COMMERCIAL

•

,

FINANCIAL CHRONICLE

Gotfon

Compromise Advances
McKellar

of

the

Senate

correspondent of his hope "that the
(Continued from page 3204)
$1.29 an ounce, mat is, xo sil¬ silver .problem can be settled as propriations Committee, the other
soon
as possible.
Our industrial features of the compromise which'
ver's "monetary value.'*
In the Appropriations Commit¬ firms need silver to keep people the Treasury opposes, such as the
tee the silver. Senators were very at work."
K./■/:. repeal of the existing 50% trans¬
Senators Hayden of Arizona on actions tax on silver deals and the
anxious that the measure as re¬

1

'

to

ported out by the Senate contain
the proviso for $1.29 after two
years, The silver Senators do not

expect to get that proviso enacted.
They expect the House to balk on
that. But they want the $1.29 pro¬
viso
a

for

bargaining purposes,

shield for

in

the increases

as
the

subsidy price for Treas¬
ury purchases from 71.110 to 901/20.
As this article goes to press it is
present

learned

amendments

have

by "jewelry"

Sen¬

that

been drafted

ators to be offered from the floor

Importers

Elecl Officers

Ap¬

;

•'•••.

•.

Next
Cotton

Inc.,

;

;*

»

.

year's

Importers

the

annual

' -c

..

of

•

X

the

Association,

were announced

after

'

••

officers

June

on

election

10,

of

the

Executive Committees and Chair¬

removal of all OPA ceilings ;on
Appropriations Committee silver and silver products, seem
destined to be enacted. Concerning
relative to the compromise, and
Sen. Milliken of Colorado, another the repeal of the tax, one Western
silver mining state, declined to Senator not mentioned above said:
comment on the prospect.
"There is quite a lot of silver

whom has fallen much of the work

of

men

in the

the

Lawson of

Into

Getting

Foreign

Trade-

Sections, with Ralph
the firm of

Anderson,
Clayton & Co., Inc., N. Y.,' suc¬
ceeding Elwood B. Kern, Jr.," as

Eugene Van Cleef—The Ronald President.
J
;
Press, 15 East 26Jh Street, New
Mr. Lawson entered the cotton
held off the markets "by
York 10, N. Y.—$2.50
Murdock Gives His Analysis
\
/
business in 1912 selling Egyptian
foreign countries, awaiting deter¬
From Senator Abe Murdock of mination " by
cotton for
the Boston office of
Congress
of
the
Investment
Companies — 1946 R. & O. Lindermann of Alexan¬
Utah, however, the writer ob¬ present price-change issue. Once
Edition
Arthur Wiesenberger ~
tained a detailed opinion on the it is known that no
dria, Egypt. He is a recognized ex¬
higher price
developments in the Appropria¬ can be had than the one Congress Arthur Wiesenberger & Co., 61 pert on all growths of cottons,
tions Committee. This silver bloc will soon
adopt, such silver will Broadway, New York 6, N. Y.— both domestic and foreign, and is
.

being

—

leader said:

1

be released for sale to American

cloth—$10.00

considered

as

of

one

the

leading

of industry. But for that to happen,
authorities in the foreign field.
United States Government Obli¬
fiext week.. One of these amend¬ the Senate Appropriations Com¬ it will be necessary to provide a
H. V, Linehan of. the New York
gations—New issue of an annual
mittee the compromise agreed to suitable
ments would strike out the twomarket.
The
existing
office of the firm of O'Donnell
on the silver question, arrived at
publication — Bond Department.
silver transaction tax impairs the
year limit on Treasury sales of
Bros., was elected Vice-President
surplus' silver to industry.
Re¬ between Senator Green and other freedom of the market, and so the The Northern Trust Company; of the Association,
Senators representing states where tax should be
Chicago 90, 111.—paper
moval of that limit implies as well
repealed."
when

the

silver

elimination

rider

the

on

comes

Senate

"At

up

floor

this morning's meeting

there is substantial

In

fabrication of

$1.29 provision.
If this silver, and Western Senators, was
amendment succeeds,
the silver made a part of the Treasury-Post
Senators will have lost one of their Office Appropriation Bill in lieu
bargaining weapons for use in the of the rider attached to the bill
of

the

Senate-House

conference

on

the

in

the

House^of Representatives.

If the compromise goes through
becomes law, even without

E. F.

$1.29 provision,- it will be a

other

good

"deal"

for

the

silver

bloc.

serve

board

the

on

ensuing year:'N

Cosmo .Records Slock

Paul

The essential differences in the
E. F. Gillespie & Co., as sole
In exchange for permitting the
underwriter, is / offering to tnt
being House rider and the Senate rider sale to
industry of surplus, nonwere
that the House rider pro¬
public today 68,700 shares of com¬
prepared
by" jewelry Senators
monetized silver for a two-year
sale
of non - monetized
mon
stock
($1 par), of Cosmc
would restore the original House vided
period at a price which established
Treasury
silver at 71.110 per for two
Records, inc. The stock is priced
language, at least insofar as it re¬
years a ceiling of about
at $4 a share. I
lates to price, The House rider ounce; whereas the Senate Appro¬
90.50, the Western .silver produc¬
Upon completion of this financ¬
to the Treasury Appropriation Bill priations Committee compromise ers
will
receive
a
guaranteed
provides for the purchase of do¬ floor for their silver
ing, outstanding capitalization o'
provided for sale of surplus silver
product for¬
the company will consist of 300,to industry at 71.110 during a two- mestically produced silver by the
ever. It is a compromise in which
year
period.
Either of these Treasury at 90.50 per ounce and two years is balanced against 000 shares of common stock
There is no funded debt. Proceeds
amendments will, if enacted, jus¬ the sale of Treasury silver to the
eternity.
Maybe sometime this
tify the nervousness which silver silver industry at not less than country will clean up its monetary from this sale will be used by the
company to expand its manufac¬
Senators have been exhibiting on 90.30 per ounce, this price to con¬
system and put * an end to the
turing plant at Massapequa, Long
this matter during the past fort¬ tinue for a period of two years
silver-mining subsidy in the guise
from July 1, 1946. Then on July
to establish distribution
night.
of monetary legislation. But noth¬ Island,
centers and toward the payment
1, 1948, the price to be paid for
Sen. Green Makes A Statement
ing has happened during the last
of current liabilities.
domestically produced silver is
! .Consulted by the writer imme¬ raised to its monetary value of 14 years to disturb the silver
Cosmo, which was incorporated
statutes,
excepting
to
enlarge
diately after the June 8 action of $1.29 per ounce.
on
April 9, 1946 in New Jersey
them, and there is not any sign
the Senate Appropriations Com¬
"Language identical to the Sen¬
succeeded to the business of Dorthat anything will happen.
mittee, Senator Green made it ate rider was introduced by me as
bank Corp., Automatic Industries
clear that he has resisted efforts a bill in the
Senate, referred to
Inc., and Cosmopolitan Records
McCarran Still on the Scene
to get him to commit himself to the
Banking and Currency Com¬
Inc., by acquiring all the out¬
Senator McCarraii, who over the
back
the
committee - approved
mittee, and by this committee re¬
standing stock of these companies
compromise on the Senate floor. ported favorably to the Senate. years has tried a dozen different
It controls the producing and mar¬
The Senator neither said that he It has now been on the calendar angles for getting something more
keting facilities required for the
definitely will or won't. The. fol¬ fOr several weeks, but has been for silver, is very much present at
business of producing and selling
lowing was his statement to the prevented from being considered committee meetings where the
records. '
•
Writer in full:
by the Senate by Senator Green subject is discussed. It is said that
"After a long and bitter fight and other Senators from north¬ the Senator objected to the Ap¬
the full Appropriations Commit¬ eastern states.
It is my judg¬ propriations Committee taking up
tee has voted to report favorably ment that if my bill had been al¬ the subject of .the silver com¬
the Treasury and Post Office bill lowed to
go/ through < the Seriate, promise in its June ,8 meeting on
including the compromise as rec¬ long before^iiOw the silver irtdus4- the grounds that the liotice calling
ommended by the subcommittee. tfy would be getting all the siiveri the meetipg> had hot listed silver
Offering of $12,000,000 City Ice
"It was • agreed that the bill it
needed at the very reasonable among the topics to be there dis¬ & Fuel Co. 2 % %
sinking fund
would not be taken up in the Sen¬
cussed; and that on investigation
price of 90.50 per ounce.
debentures due 1966 is being made
it developed that the Senator had
ate until after the Interior De¬
"Some Eastern papers have ac¬
today at a price of par. Simultane¬
partment bill was disposed of and cused Western Senators of reneg¬ instructed the committee clerk in
ously warrants are being mailed
until after I had returned from
sending out the notices calling the
to the company's stockholders, en¬
ing on the compromise/ This, of
Bermuda. I am the chairman of
meeting to omit mention of the
course, is a manufactured false¬
titling them to subscribe to 114,a
subject. In any case, the Nevada
delegation appointed by the
hood, and it was quite evident Senator was overruled and the 827 additional shares of common
Senate
to
attend the Empire this
morning in the Appropria¬
stock, in the ratio of one share
Parliamentary Conference there. tions
subject was taken up and acted
Committee tiiat if anyone
for each ten shares held, at a
Its Meetings cover four days be¬
upon. Thereupon, McCarran in¬
had backed up on the compromise
subscription price
of $34
per
ginning June 10. So the bill will it was Senator Green of Rhode sisted that the matter. be not
share, which is substantially un¬
probably come up in the Senate Island, who, while voting for the brought up on the floor until after der recent market
quotations.
the Senate had disposed of the
the following Monday, June 17.
compromise referred to in com¬
The debenture offering and the
Interior
"At the meeting of the subcom¬
Department
bill
now
mittee; refused to commit himself
mittee on April 30 I made the fol¬ to
pending, although he could not be offering of stockholders' rights are
support it on the Senate floor.
prevailed upon to say why he underwritten by a group of 26
lowing statement: "In connection This
action, in my opinion, cer¬
houses headed by A. G. Becker &

The

to

and

were

of

directors of the association for the

bill.

v

Linehan, the following

elected

Gillespie Offers

and

the

addition to Mr. Lawson

Mr.

Good Deal for the Miners

amendment

.

City Ice & Fuel Co.

' r '

>

°

>

Ceresole, of E. A. Shaw &

Co., Inc., Boston, Mass.

,

Roy N. Russell, of W. R. Grace
& Co., New York

George Emery, of E. A. Shaw &
Co., Inc., Boston, Mass.
f «,'{

Williams in

Pittsburgh

AIB Post
Leon I.

Williams, of the Peoples-

Pittsburgh

Trust

Pittsburgh
of the

annual

the:

of

Pittsburgh Chapter, Ameri¬

Institute

can

Company

elected President

was

of

meeting

Pittsburgh

Banking, at the

May 28, said

on

'"Post

Gazette"

which in reporting this continued:
;V " •

•

y!'-Li

Other
Elmer

j.'l-'y}',*

;

j.

-\"V>>,!*,,

officers, named

F.

Schafer,

were

Farmers

De¬

posit National Bank, First Vice-

President;

Joseph

T.

.

1

Stephens,

Colonial Trust Company, Second

Vice-President,

Nevin

and

J.

Garver, William C. Fecke, Jean O.

Hobby,w Arthur

S.

Lauderbaugh,

<

r

H

DebenturesOffered

voting in favor of this tainly is not the action of a Sen¬ wanted this additional delay, the
Co., Inc.
compromise on the silver item of ator supporting unreservedly what report is.
with my

the Appropriation bill for the Treas¬

Proceeds from

■

Obviously, the silver rider is at¬
tached to an important appropria¬
ury and Post Office Departments, I
wish to restate my position.
I
tion bill, and the nearer the June
"Silver
cannot
be
produced
voted in favor of it in this subcom¬
30 deadline, the more acute the
profitably at 71.110 per ounce, but
mittee and shall vote in favor of
situation.
Eastern Senators
he has

agreed to by
promise.

way

of

com¬

it in the

without
committing myself to

main committee

in any way

further action or inaction in
connection with other silver leg¬
islation. In connection with any
such legislation, I remain as free
any

80%

of

produced

our

domestic silver is

byproduct of lead,
an increase to
90.50 per ounce for silver is cer¬
tainly a reasonable and fair price
copper

as a

and

zinc,

may

hnd

Frank

>

S.

Turner; Jr.; Directors.
i-viCy; •<' •'

-Vi

•;

Ray lo Head Texas
Bankers Assn.
DeWitt T. Ray, President of the

Liberty State Bank; Dallas, Tex.
was

elected President of the Texas

Association

Bankers

the

at

or¬

ganization's 62nd annual meeting
in Galveston, on

May 23, accord¬

ing to the Dallas "Times Herald"
which further said in part:

He succeeds M. C.

the

First

Ulmer, Presi¬

National

debentures and common stock are
to be used to retire

land Tex. whose term expired..at

bank

term

to

loans

$10,200,000 of
and $946,000

subsidiary

held

publicly
and

increase

working

the ;close
bonds, meeting.

capital.

wish responsibility for fili¬
bustering on a bill that will leave Giving effect to the financing the
postmen unpaid. But silver Sena¬ debentures will be the only fund¬
tors may not shrink
from the ed debt of the company or sub¬

not

S.; L'oughren

dent,

.

as

the sale of

Leo

prospect. They have faced it on sidiaries.
industry to pay the
other occasions, to advantage.
Treasury. The silver industry, in
to act as though this item had
my opinion, can blame their own
never been acted upon."
Senators for delaying for several
"At the meeting of the full com¬
weeks the availability of silver to Hackenberger Added to
mittee today (June 8), when that
them at the reasonable price of
committee voted to report the bill
Chas. A. Parcells Co. Staff

^Vtr,

Mid¬

the|Galveston
a

member

Council,

the

of

American

Bankers Association, and has been

of

King-Seeley Corp. Stk.
by Eberstadi

is

Ray

Executive

active

for the silver

of

Bank,

on

the

Bankers

many

ABA;

committees, both
and

;

the

Texas

Association,

Offered

with this

compromise included, I

90.50 per ounce."

;J/

[,

,

;

DETROIT, MICH; — Frank W.
repeated my statement of April 30, Tax Repeal Stays in Compromise
Hackenberger has joined the Sales
despite urgings on the part of the
Although the. $1.29 price feature Department of Charles A. Parcells
silver bloc that I agree uncon¬
of the compromise is very unlike¬ & Company, 639 Penobscot Build¬
ditionally to support the com¬
ly to be retained in the final leg¬ ing, member of the Detroit Stock

promise in the

Senate."

Saltonstali Also

Comments

Senator Leverett Saltonstali of
Massachusetts, another silverware
and

jewelry state,

informed this




islation

on

silver

this

year,

especially since the Treasury has
all

and
was

along
so

opposed

such

a

this

year

to

Chairman

A

syndicate headed by F. Eber&

j Co.,' Inc.,

Revenue

and

the

Detroit

Thos. Marsalis

to

Thomas Marsalis &

Admit

Co., 11 Wall

(June 13) 127,500 shares of com¬ Street, New York City, members
stock, par value $1 per share, of the New York Stock Exchange,
of King-Seeley Corp. at $25 per will admit Thomas F. McKenria to
<
f

ternal

Watling,

Lerchen & Co., are offering today

share.

Ordnance District.

and

mon

Mr.

Hackenberger was formerly
price with the U. S. Department of In¬

stated in the letter which

sent

Exchange.

!

stadt

•

partnership

..

The net proceeds are to be used

to
to

partly reduce
increase

funds.

;•

•;

bank loans

general
•

v

McKenna

on

June

will-acquire

20th.

Mr.

the

Ex¬

and

corporate
;;

change

membership

Moriarty.

of

John
'■

B.
.

'-V;'y

THE COMMERCIAL & FINANCIAL CHRONICLE

3250

Securities

Now

in

Acme

Mich.

Industries, Inc., Jackson,

(letter of notification) 46,000 shares of $1 par
common stock.
Underwriter—Stoetzer, Faulkner and Co.

June

INDICATES ADDITIONS SINCE

•

Arkansas

Western

Gas

PREVIOUS ISSUE

?.r

Co., Fayetteville, Ark.

Brooklyn

(6/24>

3

•.Mr-

Registration

•

•

<

Thursday, June 13,1946 *

June 5 filed 33,639 shares of common stock

(N. Y.)

Union Gas Co."

|'

(par $5).

•

Aero Chemical Products Corp.,

June

6

(letter
stock.

common

<-

Peapack, N. J.

of notification) 73,500 shares ($1 par) ?
Underwriter—Donald Young & Co. Inc.

of retiring the subsidiary's obligation in that
Fidelity Union Trust Co.
Remaining pro¬
ceeds will be added to working capital.
purpose

: •

to

Aeronautical Securities, Inc.^ New

June

6

filed

500.000

Underwriter—Calvin
The

shares

will

shares

of

offered

be

capital

York (6/25)

stock

publicly

at

(par $1).

Offering—

New York.

Bullock,

maximum

a

(determined at the offering
price computed on the basis of the net asset value on
June 4,1946, viz.; $10.72 a share); Proceeds—For invest¬
offering price of $5,360,000

ment.

Business—Investment company.

All American Aviation, Inc.,
(6/24-28)

.

Wilmington

.

Allied Stores Corp., New York (6/18)
May 29 filed 257,840 shares of common stock (no par).
Underwriter—Lehman

Brothers.

Offering—Stock

is to

be offered for subscription to holders of common stock
at the rate of

record at

one

close

share for each seven shares held of

of business

date registration state¬
expected that the offering
to shareholders will be made on or about June 18, and it
will extend for a period of 14 days. Proceeds—Net pro-5
ceeds will be added to the general funds and applied
to such purposes as directors may determine.
For de¬
tails see issue of May 30.
ment becomes effective.

:VM

•

'

Attwood Iron

The
Otis

Industries, Inc., Gr. Rapids, Mich.-

(6/20-21)

curiiulative convertible pre¬

ferred stock may exchange their holdings on the basis
of two shares of preference stock for each share of pre¬
ferred between June 14-19. Preferred stockholders also

officers and executives upon exercise of
By this means, company issued 4,666 shares
and allotted options on 359,000 shares, leaving 23,667
shares to be allotted, certain options having lapsed, The
shares being registered are those on which options
may

Manufacturing Co., Inc., Montgomery,

progress

m

Business

Manufacture of aircraft.

Budd

Company, Philadelphia

May 24 filed 543,000 shares of

no

a| the, rate of one additional share for each five

Underwriter—Stephenson,
Leydecker & Co. Offering—Preferred and 64,000 shares

purchasesf of additional machinery and equipment, efe;
For details see issue of May. 30.
,?
? ?"
■V ■ ..'M:??-:?; ■?/?••'?/?•;? MMI-MiM-M M/?M'??'.mM ,??; "m?
Califorhia Elechrlc Power Co., Riverside, Cat. M?

common are being offered for the account of T. <*.
Stanley, the preferred at $25 per share and the common
at $8.75 per share.

-

,

derwriters—Names to be filed by amendment. Probable
bidders include Dilloii, Read & Co., Inc. (bonds); The

public at market but at not less than

$10 per share.
Proceeds—Payments to and advances to subsidiaries for
working capital, for purchase Of equipment, repayment
of loans, development, etc.
For details see issue of
April 4.

Chicago

,

.

May. 10 filed $16,000,000 first mortgage bonds due JuneM
1, 1976, and 169,636 shares.common stock ($1 par), Un¬

(6/18)

March 30 filed 350,000 shares of common stock
(par $1).
Underwriters—Bond & Goodwin, Inc. Offering—Price to

Foods Co.,

com¬

shares held. Rights expire July 8. Unsubscribed
shares -will be offered to the public by underwriters.
Proceeds—To increase working capital and to finance
mon

of

Beatrice

'

and Blyth?

Offerings-Shares will be offered for sub-^?
sctiption to common s ockholders of record on June

the preferred.

Barium Steel Corp., S. E. Canton, O.

stock.

common

& Cb. Inc.

MacFarlane, Oakland, Calif.

May 13 filed 12,000 shares of 6% cumulative preferred
stock (par $25) and 30,400 shares of common stock (no.,
par).
Of the common stock 24,000 are reserved for
conversion of

one

(7/9)
par

U|iderwriters---Carl M. Loeb, Rhoades & Co.,
Fresh

and

plated,: each involving the installation of additional pro4s
dUctio|i,; pumping, storage and distribution facilities, ?

Proceeds—Net pro¬

First Boston. Corp.; Halsey, Stuart & Co*, inc, w(bonds>;?
Kidder, Peabody & Co., and Stone & Webster Securities f
Corp. (stock). Offering—Securities will be offered for5
sale at competitive bidding;
Price to public- by amend¬
ment.
Proceeds—Redemption of first mortgage bonds •
3^%, series; balance to general funds., Bids1 Invited^-5

v

(6/17)

Company will receive bids for the purchase of the se"of Bankers-Trust Co., *16 Wall St.,
New York,. up to 12 Noon (EDST> on June; 17. The ;(
..interest rate on.the bonds is to be specified in the bidp.;
Curities at the office

May 29 filed, 59,862 shares of 3%% cumulative converti¬
ble preferred stock ($100 par).
Underwriter—Glore,
Forgan & Co., Chicago.
Offering—Preferred will be

offered for exchange to holders of $4.25 cumulative
pre¬
will receive a cash adjustment.
Shares of preference
ferred stock on basis of one share of new preferred for
stock, not issued in the exchange offer, will be offered 1
each share of $4.25 preferred.
Exchange-offer is sub*«
to the public through underwriters.
Proceeds—Net pro¬
ject to purchase by underwriters of all shares of new •
ceeds will be used for redemption of unexchanged shares
preferred not taken in exchange.
Proceeds^-Rederopof preferred at $50 a share on June 28.
tion of old preferred not
exchanged.
For derails see
Mm m:
:
J:'---mmm
issue of May 30.
*
American
V',

in

now

company will re-M

to

Awful

program

d(?em $29,240,000 general mortgage sinking fund bonds,''
3& % series, due Sept. 15, 1969, and $11,850,006
^25-year
4% sinking fund debentures, due Sept. 15, 1969.
lit
addition, $4,000,000 will be used to provide funds fOT
the construction program now in progress and contem-

for

options.

capital.

construction

contemplated to be commenced in tho immediate future

May 29 filed 320,667 shares of common stock (par $3),
Underwriters —- No underwriting.
Offering—Company
issuance

Co.

tiqn purposes, and to provide funds for the completion*
o£M a

foundry.
!
mm? ;.m:m mm??.-?? '?.????■'?:?.? m?m?; !'?mmmmk'm
Aviation Corp., New York (6/17)

common stock

&

(stockj only). Proceeds—Company, plans
tof refund its entire outstanding
long-term debt,, to reim-M
burse the treasury for expenditures made for
construe-'

for operation of a gray iron

previously reserved 375,000 shares of

Under¬
bidders

Halsey, Stuart & Co., Inc. (bonds only); HaitiRipley & Co., and Mellon Securities Corp.
(jointly )First Boston Corp.; F. S,
Moseley & Co;, and

man

* '

i

(letter of notification) 200,000 shares of common.
Offering—Price, $1 a share.. No underwriting. To pro¬
vide plant, machinery, equipment and working capital

May 24 filed 90,000 shares 5% convertible preference
(par $25). I Underwriters—Alex. Brown & Sons.

•

'

.

June 3

stock

5%;

are

on

American Investment Co. of Illinois

Offering—Holders of

Shares

being sold
Business—Public utility; :

by six stockholders.
'r

It is

v

.

Price by amendment.

be exercised on or before May 30.
ceeds will be added to working

May 23 filed 100,000 shares of common stock,
Under¬
writers—Van Alstyne, Noel & Co.; Francis I. du Pont*
& Co., and Courts & Co. Offering—-Stock will be offered
to public.
Price by amendment.
Proceeds—Purchase
of twin-engine aircraft, etc.
For details see issue Of

May 30,

include

Rollins & Sons Inc.

Offering—Price, $3.87% a share. Proceeds—Of the net
proceeds, $100,000 will be loaned to Cleveland Labora¬
tories & Manufacturing Co., Inc., a subsidiary, for the
amount

shares of cumulative preferred stock
($100 par),
writers—To be filed by amendment.
Probable

the public.

1

irj

May 3 filed $34,000,000 general mortgage sinking and'
improvement fund bonds due June 1, 1976, and
100,000

Underwriters—Rauscher, Pierce & Co. Inc? and E. H.
Offering—^Stock will be offered to

Proceeds—For payment

Offering—Price, $6.50 a share.
of outstanding bank loans.

M

California; Oregon Power Co.; Medford, - Ore»MM
Mayr 24 filed 312,000 shares of common stock (no par)-.
,

Stock will be sold through competitive

writers—Names by- amendment.

bidding. ' Under¬

: Probable * bidders

;

elude Blyth

&*Co., Inc.; The First Boston Corp.; Kuhn,
(jointly); Harrimari5i
r/t1''-',?
*
1
j'-.v*
MRipleyi&r Cov Offeriiig-^StQck; is being sold by Standard
'
it?;'
MGasManchtElectric Cot^'parent;' of California. - '
Benguet Consolidated Mining Co^ Manila, P. I. '
>$0,:
mi
March 15 filed 702,302 shares of capital stock value
Candego Minesv?Ltd,r Montreal, Canada- (6/19)
(par 1 peso, equivalent in U. S. currency to 50 cents
tMay 3Lfiled 500.000 shares of common stock (par $I>M?
per share).
Underwriters—Allen & Co.
The shares are
^Underwriters—Sabiston-Hughes, Ltd.^' Toronto.
Offer-?
part of a total of 852,302 shares purchased by Allen
zing—Shares will be offered to public at 75 cents a share.
& Co. from five stockholders.
Of the 852,302 shares,
M

t(f-

*MM

'

M

;

:

>

t1

t

■'

•

-

^

,

Loeb & Co.; Smith Barney & Co.

<..<

f

<

May 31 (letter of notification) 300,000 shares.

Offering
price, $1 a share. For purchasing additional equipment
and machinery, for plant expansion, and for other gen¬
eral corporate purposes.
There will be no underwriter
but the securities will be sold entirely within the state
of Alabama by Harry Marks, a broker licensed
by the
state, for an agreed compensation of $5,000,

.

150,000

&

^roceedi^MNetMproiceeds,f estimated

sold privately at the cost price to Allen
Purchase price to Allen was $2.19- per:, share, m
Offering—Price $3.50 per share. For details see issue of

&

American Water Works Co., Inc., N. Y.
March 30 filed 2,343,105 shares of common (par $5) plus
an additional number determinable
only after the re¬
sults of competitive bidding are known. Underwriters—
To be filed by amendment.! Probable bidders include
Dillon, Read & Co. Inc., White Weld & Co., and Shields

were

fused fojCf mining operations.,

Co.

.

'

Cardiff Fluorite

1

'

'

'

...

'

.

•

'

*

y~

^

Booth Fisheries

Corp., Chicago

.

,

,■

-; •

(6/17)

Mines

''(6/24)

?

'

.

t

: f

&>■

March 21.
v<

at $300;000,MwiU
Buslness-MExploring for

i

ore.

1

Ltd., Toronto, Can.
y;,:m; ;M/m? m?
-A,

*

m

!

m
.

v.

filed 400,000 shares of common stock ($1 par)
(Canadia^ : funds ),?f?Underwriter -U Frank. * P.; Hunt, J
Rochester N? Y., is1 underwriter - for sale of stock in f
June 3

May 29 filed 15,000 shares of cumulative • convertible

Co. (jointly), and W. C.
Langley & Co. and The
First Boston Corp. (Jointly).
Offering—Price to public
by amendment.
Purpose—The common stock, together

with $15,000,000 10-year 3% collateral trust bonds
(to
be sold privately) are to be issued to
acquire certain
assets of American Water Works &
Electric, liquidate
two subsidiaries,

.

preferred stock- (par $100) and an unspecified numberof shares of common stock (par $5). Underwriters—By

will

Uniled

States.

Offerings-Stock will be sold to public,,
common
stocks
at 55 cents, a share.
Proceeds—Of the' net proceeds, $40,by amendment.
000 together with $22,000 of treasury funds, will be used??
Common shares are being sold by six stockholders in¬
for development work^ -If sufficient ore is' found, com- ?
cluding Central Republic Investment Co., A. C. Allyn
pany wilt? erect a mill at an estimated cost of $150,000.
and Co., Inc., and Lee Higginson Corp. The latter two • The balaiice will
Community Water Service Co. and
go into working capital.
Busines^Ohio Cities Water Corp., and
provide cash working capi¬
companies and Central Republic Investment Co. (one of
rCompan^|intends > to ■ Explore. for the mineral known as >
tal.
Common stock is to be offered
initially for cash|i the selling stockholders) propose to participate as un¬
Fluorite;#
to common stockholders of
m'%
m.
parent and to public holders M derwriters in connection with the public distribution of
of preferred stocks Of
Community and Ohio in exchange
the stocks. Proceeds—Net proceeds to the company from
Carriers & General Corp., New York ;(6/ 27)
for their shares. ? Stock not subscribed or issued under
the sale of preferred will be applied to the redemption
*
niAo
u
ppned to tne reaem^on>.r May 27_filed $1,872,000 15-year 3% debentures, due 1961.,
exchange offers are to be sold for cash to underwriters.
of 9,148.5;shares of preferred stock at $105 plus diviFor details see issue of
Underwriters—Paine, Webber, Jackson & Curtis.?'Of-'
April 4. '
.
• "
dends.
Balance will be added to general funds,
m?':m?amendment.? Offering—Preferred
and
be offered to the public.
Prices

,

,

e

*

,

.

☆

☆

f
"-SPECIALISTS IN—

Corporate and Public Financing

?

;

.

^Underwriters and. Distributors of

■

United Staf ©$ Govern ment Securities

,

y

?

'
'* * ; 4
State and Municipal Bonds

"

Corporate and Municipal
•*M-A? ^Securities.

■

"

•

_

*
_

?:'mm??; m"'

■

.ehT

C.J. DEVINE

FIRST BOSTON-

&

CO.

Kidder, Peabody &qCo.

INC.

....

CORPORATION
NewYork

•

Boston

•




48 WALL

Chicago and other cities '

Chicago

^

•

•

ST., NEW YORK 5, N. Y.
Boston

♦

Cincinnati

Philadelphia

•

St. Louis

•

•

HAnover 2-2727
•

Cleveland

San Francisco

-'4

'

Pittsburgh

NewYork

^

...

....

Founded 1865

Members of the New York and Boston. Stock Exchanges
*

Boston

Philadelphia

Chicago

Volume 163

Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE
:

fering—Price! by amendment.
tion

entire

of

issue

of

15-year

Proceeds—For redemp¬
3%% debenturesT^ue

1960, at 103%% plus accrued interest.

Cyprus

*

.

*

W

,

May 29 filed 35,000 shares of $2 cumulative preferred
stock, series A (no par), but with a stated value of $a$*a

share* and; 175,000 3shares of common stock (paryU).
Underwriter—Paine, Webber, Jackson & Curtis, 'Chi¬

L

^

.

y

will

■

■

be

Harriman Ripley & Co., Inc. Offering

offered for subscription to common stockholder? at
the rate of one new share for each 2.8 shares nowhield.
may

.

>

!•.,»' i£'y aj;"V*®

^01 "f

®

■

f '
y< 1

be sold to underwriters or to

parties. Proceeds—For expansion of

vices and improvement of properties,

consume|/$erDelhi Oil

4 f Chef ford Master Manufacturing Co., Inc.,. Fairfiefd, III.

'

May 8 filed 40,000 5% cumulative convertible

■

.s

preferred

shares

(par 25) and 40,000 common shares (par, .^2),
Underwriter—Cruttenden and Co.
Offering-r-Pric^ of

Business—Automobile replacemenr

•

.

entitling the holder to purchase one share of common
stock up to May 31,
1951, but not before one year from
the
dpte on which the shares to be offered are available
for public offering.
Underwriter—L. D. Sherman & Co.
Offering—Price, $2 a share of common and lc a warrant.

(6/20)

Proceeds—For

Electronic Traps,

Corp., Dallas, Texas ')

,

>

inventory

and 1

Inc., Rochester, N. Y.

May 20 (letter of notification) 40,000 shares of common'
stock (par $5). Price to
public, $5 per share. Proceeds—
To finance the manufacture of corporation
products and
to repay loan, the proceeds' of which were used for
manufacturing purposes.
Issue not underwritten, but
if company is unable to sell stock it
may later secure
broker's assistance.

other liabilities.

or

•

■

Elmwood Cooperative

Apt*., Inc., East Orange,

June

7 (letter of notification) 2,943 shares of
capital stock on behalf of Elmwood Village, Inc.

May 17 filed 50,000 shares of 5% cum. conv. preferred
stock (par 10) and 95,000 shares ($1 par) common stock.

no

par

Offer¬

ing—Price, $100. a Share. Sale of stock is to be made
by Lyman, Inc., East Orange, N'. J., as agent for the

Offering—.
Company is offering the 50,000 preferred shares to the
public. The 95,000 shares of common stock are issued
and outstanding and are being sold by the present own¬

June 10 filed voting trust certificates for 170,000 shares
cf /no^paft common stock.
In^ addition; the company

equipment,

?

s

^Underwriters—Herrick, Waddell & Co., Inc.

Chicago & Southern Air Lines, Inc., Memphis,
Tenn. (7/1) '
!!::^.;! ,f

additional

working capital.

Denman Tire & Rubber Co., Warren, Ohio
(6/17-21)

®I1

:

,

,

(letter of notification) 149,400 shares of common
stocky (par 10c) and 100,000 stock purchase warrants

cumulative convertible

applied to the payment of current

^arts,

etc-

Duggan's Distillers Products Corp., Newark,
N. J. (6/14)
>
\

June 5

outstanding common stock. of the corporation.
Froceeds—Proceeds will be added to cash balances to be

nptes and approximately $909,694 for additional work¬
ing capital.

•

of the

preferred is $25 per share; price of common by amend¬
ment.
Proceeds—^300,000 will be used to discharge
bank l6an$, $60,963 to discharge machinery purchase

'

capital*

common

May 23 filed 175,000 shares common stock (par 500)
Underwriters—No underwriters.
Offering—Shares will
be offered for sale to common stockholders of record
June 20 of Southern Union Gas Co., which owns all

':IM-

(par $2).

20,000 shares will be offered for sale to officers and
employees not at present stockholders and to the employees's bonus and profit-sharing trust.
Proceeds—
Approximately $1,000,000 will be used to expand and
increase inventory and balance to increase
working

-

'MSI

.

stock

common

and

1

• -(

,

other

May 31 filed 125.000 shares of

preferred stock (par $10) and 100,000 shares of common
stock (par 10c).
Stock being sold by five stockholders.
Underwriters—Scherck, Richter Co., St. Louis. Offering
—Offering prices are $10 a, share for the preferred and
$4 a share for the common.

be

Unsubscribed shares

t'

June 4 filed 50,000 shares of 5%

The shai^es^vill

—

--V

1

v.

*

Dazey Corp., St. Louis, Mo.

filed

by amendment.
Probable
underwriters include Blyth & Co., Inc.; Otis & Co., Inc.;
names

/

v

Co., Vernon, Calif.

'"Sa

Underwriters—Hill Richards & Co.
Offering—105,000
shares will be offered to public.
Price by amendment

stock.
Offering price, 156,330 shares at 30 cents a share.
20^00 shares are tq. be issued at 25 cents a share*; For
further developing of mining properties.: Underwriter—
The Broy Co., San Francisco.

May 29 filed 30,000 shares of common stock (par;$10).
Underwriters—If unsubscribed shares are sold to under-'
Writers

i

May 28 (letter of notification) 178,330 shares of

Central Ohio Light & Power Co., Findlay, Ohio

;

(6/19)

Nev.

supplied by amendment.
Procceds-4To
$3,000,000 loan from First National Bank Qhicago and Harris Trlist and Savings Bank, Chicago?*.,bal¬
ance working
capital." »
,
J"
'

Ducommun Metals &
Supply

(6/19)

stock

common

Dayton Consolidated It/lines Do., Virginia City,

pay off

■

'

,

cago. Offering—The stocks will be offered to the -public
at prices\ to be

W,.

Montreal, Canada

(par $1)*
Underwriters—Sabiston-Hughes, Ltd., Toronto. ; Offer-)
ing—Shares will be offered to the public at 75 cents a
share.
Proceeds—Net proceeds, estimated at $300,000,
will be used for mining operations, Business — Explor¬
ing for ore*!1
^
^

•

v

Mines, Ltd.,

May 31 filed 500,000 shares of

Central Electric & Gas Co., Sioux Falls, S. D.
r

I

3251

isfe

seller.
•

Proceeds go to the selling stockholder.

El

Paso

(Texas)

Natural Gas Co." (7/1)

June 30 filed 75,000 shares ($100 par) cumulative
pre¬
ferred stock and 100,957 shares ($3 par) common
stock,

ers.
Price to public: preferred, $10 per share; com¬
registered 42,000 shares of common issuable upon the
mon, $8 per share.
Purpose—Proceeds will be added
exercise of warrants for purchase of wmmori
Underwriters^-By amendment. ; Probable underwriters ;
'y
$30 a, share up to Oct. 27, 1955. Underwriters—Kebbon, |to general funds.r;,v• •
include White, Weld & Co., and Stone &. Webster SeMcCormick & Co., Chicago, and I. M. Simon & Co,| St.
curities Corp.
Off ering—14,797 shares of preferred stock
•
Detroit Aluminum & Brass Corp., Hamtramck,
will be offered to holders .of 7% cumulative
Louis,. Mo*, Offering-^-Certificates will be offered td the
preferred ;
Mich.
(7/1)
stock on a share for share exchange basis
public,- Price by amendment.
Proceeds-rNet proceeds;
plus a cash
June 11 filed 181,440 shares ($1.25 par) common stock:
wdil bemused,for the purchase of.10 Martin 2-Q-2^air-r
payment to the exchanging shareholder. The remaining !
craft and spare, parts; for training costs and foreign * Underwriters—Baker, Simonds & Co., Detroit. Offering!
60,203 shares and any unexchanged shares will be sold
—The stock will be offered to public at $10 a share.;
route installation costs; for a new office and hangar at
to underwriters for resale to the public.
Common stock ;
Proceeds—The shares are being sold by six stockholders
will be offered for subscription to present common stock¬
Chicago, and additional working capital, Proceeds from ;
who will receive net proceeds.
Business—Manufacture: holders at the rate of one share for each six shares now
the sale of stock pursuant to the warrants will be allo¬
of bearings and bushings for use in internal combustion
cated to capital account,
Business—Passenger and/) ex¬
I held.
The subscription offer expires oh July 18, 1946.
engines.
press air service.
Unsubscribedvshares-v^ll be purchased by Tinderwriters
for sale to the public.
Price—Prices by amendment, v City Stores Co., Philadelphia (6/18)
Dewey $nd Almy Chemical Co., Cambridge,
Proceeds—The sale of the securities is part, of a financing
Mass. (6/24)
®|ay? 29 filed 1GQ,0Q0 shares common stock (par $5).
program^ ta nbtain funds foi^ construction ^
natural
Underwriters—Lehman Brothers.
Offering^StS^? 1st June 5 filed $5,000,000 convertible debentures, due 1976,
gas pipe line to California at an estimated cost of
and 15,000 shares of common stock (no par). Company is;
being sold by Bankers Securities Corp., parent.
Price
$41,412,000, and to retire outstanding funded debt and
by amendment.
preferred stock.
In addition to the proceeds from the
selling the debentures while the common' stock is being
.

.

.

.

«

•

V

Consolidated

Retail

Stor es,

June 6 filed 60,000 shares

—Paine, Webber, Jackson & Curtis. Offering—^Price by
amendment
Proceeds—$2,610,825 from sale of deben¬

4&% cumulative preferred

shares of

common

owned.

.s

loan

:

Car

Co., Chicago,

and

III.

ers—Hallgarten & Co.
■

.

'*•-

•

see

Offering—Price based on market

Doman-Frasler Helicopters,

•

•

'

'

'

will

be

used

for experimental

Inc., New York

.

(6/17)

The options Were granted on Sept. 5, 1945. Proceeds—
In the event that all options are exercised/ corporation
will realize $780,000, which it intends to use for in¬
creasing inventory, acquiring and equipping additional
supermarkets, warehouses, etc.

''1'^

OF NEW YORK
Transfer

*

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;new york

j:- ::

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Members New York Stock Exchange :: ;
.

albany

chicago

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pittsburgh




trenton

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INDIANAPOCIS
v

washington

^

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•

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New York

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(6/20)

•

•

•

•

*

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*

23 filed

which

company

a share.
Proceeds—Construction of plant, purchase of equipment,

♦
*

working capital.
;!

,

$2

newspaper known as "France-

Offering—Stock will be sold to public at $5.85

•''

<

'

175,000 shares common stock (par 500)
is selling 150,000 shares and two
officers 12,500 shares. Underwriters—First Colony
Corp.
of

.v*:

•!♦■*■

r-._

FR Corporation,

-

.)!)".'"'.-'it-v.-'.5•'

'

•

'T-s-*'^
•

"

(letter of notification) 500 shares

■■■ft:

Y.

■'

\

York City.

Trustee

RECTOR 2-2200

.

\

"t

Foreign Language Publishers, Inc., New York

May

!

'

Amerique" which the corporation is publishing in New

Registrar

NEW YORK 15, N.

V

'il '•''<>>

\

% in view of plans to expand

;

•

'philadelphia

VVV

non-cumulative preferred stock.
Offering price, $100 a
share.
No underwriting.
To increase working capital

•

ONE HUNDRED TWENTY BROADWAY

•

Hemphill, Noyes CS, Co.
*--V.
•'*7

'

June 4

?! UNDERWRITERS—DISTRIBUTORS—DEALERS

Municipal Securities

\'i

•

v-n;

The Marine Midland Trust Company

,

,

the holders to purchase between Sept. 5, 1946 and Sept.
4, 1950, shares of common stock at $19.50 per share.

Vr

and

per

common Stock ($1 par) j
issuable upon exercise of options to purchase common
stock.
The options to purchase common stock entitle

Co., Detroit.
Offering—Stock will be sold to public
$6,125 a share.
Proceeds—Of the total eight stocks
(letter of notification) 20,000 shares of class^A
holders are selling 73,208 shares. Net proceeds to com*
add 20,000 shares of class B common. Offering price, ? pany from sale of 18,910 shares will be used to pay
balance due in purchase of certain real
$6 a unit consisting of one share of class A and one,share
estate; plant
pt, class B common, i No underwriting. To eqtuijTj^to^y - addition; additional machinery ,and equipment.
For
and for working capital.
V
details see issue of May 30.

:

:

April 29 filed 40,000 shares of

at

;

Business—

Food Fair Stores, Inc., Philadelphia

May: 28 filed 92,118 shares of common stock (par $2)*
Underwriters—White, Noble & Co., Grand Rapids, Mich.;
F. H. Koller & Co., Inc., New York, and Miller, Kenower

June 3

Industrial, Public Utility, Railroad!

corporate purposes.

share. Proceeds—Proceeds will be used *
planes, ten flying boats, re¬
conditioning of flying boats and working capital. Busi¬
ness—Company was incorporated on March 9, 1946, to
operate as a charter air carrier;

&

•

pipe line extensions and additions

other general

,

to be issued upon

wA

for

public $3.50

in connection
Not underwritten*

Douglas & Lomason Co., Detroit, Mich.

the company

■-

amount

for the purchase of six land

purposes

with development of helicopters.

May 29 filed 77,i34 shares of common stock (pair$1),
Underwriters—Names by amendment. Offering-^-Shares

Kyf *M

program

the

May 6 filed 300,000 shares common stock (par $1). Underwriters-*J. F, Reilly & Co., Inc. Offering—Price to

June 3 (letter of notification) 150,000 shares of common
stock (par $1). Price to public, $1 per share.
Proceeds

Consol. Vultee Aircraft Corp., San Diego (6/17)

The
old bank

Flying Freight Inc., New York (6/2S)

issue of April 4,

•.

•

refinancing program.

Purchase, transmission and sale, at wholesale of natural

March 29 filed 60,000 shares of common stock (par $2),
Shares are being sold by certain stockholders. Underwrit¬
For details

.

Continental Air Filters Inc., Louisville,

in

for previous costs of

Motor

and

fi

calls for payment .of an
of $1,800,000 and
redemption at
$110 a share all unexchanged shares, of old preferred •;
stock.
The remaining funds will be used for the
con*:
struction program;, to reimburse the company in
part '

a

v

Diamond T

of $2.75 preferred at $53.50 a share and as additional
Working capital.
BusinessMOperation of stores selling
women's and children^ apparel.
- ^

•

construction

refinancing

preferred
share plus dividends;
$1,500,000 will be used for construction of additional
manufacturing facilities ahd remainder will be added to

working capital.

Remain¬

the exercise of options allotted by
to its officers and supervisor executives.
For details see issue of May 30.
•
•

the

tures will be Used to redeem $4.25 cumulative

:

ing shares will be sold to underwriters who wilLcebffer
it to the public at $52.50 a share,
Proceeds—Net pro¬
ceeds will be used to redeem the unexchanged^shares

are

for

stock which is callable at $105

stock, series .A (par $50).
Underwriter—Central Re¬
public Co. (Inc.), Chicago., Offering-rNew psefej^ed
will be offered in exchange to holders of company's
$2.75 cumulative preferred on a share for share basis
plus a cash payment of $1 by the company and dividends
accruing on the $2.75 stock. Common stockholders will
be offered the right to subscribe for the new stock at
$52.50- a share in-the ratio Of one-share Of new^preterred for each 12

sale of the securities the
company; will use proceeds
from $25,900,000 of new? bonds to be sold for cash and a
new seven-year bank loan in the amount of;
$8,500,000

sold by Consolidated Investment Trust, which owns 35,800
shares of company's outstanding common. Underwriters

Inc., St. Louis?

For details

(Continued

see

issue of May 30.

on page

3252)

.

THE COMMERCIAL & FINANCIAL CHRONICLE

3252

'71 ',,

(Continued from page 3251)

^7,

Greil Drug & Chemical Co.,

•
,

June

/

Front Range Oil & Drilling Co.,

Denver, Colo.

Pittsburgh, Pa.

Union Trust Co.;

Moroney, Beissner & Co., and Rotan.
Offering—Price to public $10.50 per '
Proceeds—Proceeds will be used to augment
the
working capital. For details see issue of May 16.
share.

>

May 20 (letter of notification) 1,493,303 shares of capital,
stock (par 50) and 20,000 shares as a bonus offering
for purchase of the business and assets of Mentho«donated by Harry J. Newton, President.
Offering—
Mulsion Co., Atlanta, Ga.
The balance of $58,000 will
Price 50 a share.
100,000 shares allotted to present.;
be used to establish an office and warehouse in Pitts¬
shareholders to purchase at par and receive also a
burgh, Pa.
v
1
"
'
20% share bonus with each purchase.
No underwriting
at
present.
Proceeds—To " drill Oil / well in Albany ,:
Grocery Store Products Co., Union City, N. J.
County, Wyo., to acquire further oil and gas interests |
i
and to pay officers' salaries andgeneral expenses, .
,
May 27 filed for an undesignated number of shares of
capital stock (par 250). Underwriters—No underwriters
J Fundamental Investors Inc., New York
but company has entered into an agreement with Edgar
May 22 filed 500,000 shares of common stock (par $2).
W. Garbisch, President for purchase of any unsubscribed
Underwriters—Hugh W. Long & Co. • Offering—To be
shares.
Offering—Stock will be offered for subscription
sold at market.
Proceeds—For investment in securities.
to stockholders of record June 20.
Subscription war¬
Business—Open-end investment trust of the limited
rants will expire on July 10, 1946.
Subscription price
management type.
>
r
V
may be paid either in cash or by surrender of first mort¬
gage 6% bonds, due 1953, at principal amount, or partly
Funsten (R. E.) Co., St. Louis, Mo. (6/24)
in cash and partly by surrender of such bonds.
Proceeds
June 3 filed 15,684 shares of 4%% cumulative convertible
—For redemption of $646,200 6% first mortgage bonds.
preferred stock (par $50) and 196,137 shares of common
Balance of proceeds will be added to general funds.
stock (par $1).
Underwriters—G. H. Walker & Co. and

Vr7,

Hudson Motor Car Co.,
Detroit, Mich. (6/13-1711
April 26 filed 226,973 shares of common stock
(no par)
Underwriter—W. E. Hutton & Co.
>

,

-

Shares are owned bythe under-,

Gatineau Power Co., Ottawa,

Ont.

ing—Shares will be offered to public at 75 cents

May 27 filed $45,000,000 series C and $10,000,000 series
D first mortgage bonds, due 1970 and $9,500,000 of sink-

•

Proceeds—Net

used

Underwriters—To be
Possible bidders in¬
clude The First Boston Corp.; Halsey Stuart & Co., Inc.;
Blyth & Co., Inc., and Mellon Securities Corp. Proceeds
Refunding. For details see issue of May 30.
fund debentures, due 1961.
decided by competitive bidding.
ing

General

Builders Supply

held.
To

preferred.

new

and all the

Gulf

stock.

public $25- and $4 a share,

respectively.
Of the common being offered, the com¬
pany is selling 100,000 shares and 12 stockholders are
selling 70,000 shares.
Certain warrant holders of company have agreed to sell to underwriters warrants loir;
f purchase, during a period of four years, of 40,000 shares
:7 of common. Proceeds—Approximately $950,000 will be
added to

'7

•

Cable

Corp., New

York

(7/1)

June 26,

Shares of first ad second preferred not taken
exchange will be sold to Blyth & Co., Inc., and asso¬
ciates for resale ;tp the public, Price-^Preferred, $100 ^
per share; second preferred, $50 per share.
in

Securities

Corp., Atlanta, Ga.

May 16 (letter of notification) 19,984 shares of common
Offering price,, $6 a share. Underwriter—Gen¬

v

Co., Atlanta, Ga.

Proceeds—For corporate

purposes.

21

filed

64,030

shares

($1

par)

(6/27-28)

common

stock.

Underwriters—Smith, Barney & Co., New York.\ Offer¬
ing—Stock is being offered for subscription to

common

stockholders of record June 11 at $40 per share at rate
one share of common for each 10 shares held.
Rights

of

expire June 26.. Unsubscribed shares will be purchased
by underwriters and offered to public/ Proceeds—Net)
proceeds will be added to general funds to be used from
time

for such

corporate purposes

Gold City Porcupine Mines,
Jan.

4

filed

Canadian
named.

600,000 shares of

currency.

as

v

I

*

'

" ',

*,

/>y*'

'/

-

shares

of

4%

stock

Offering—Company is offering

common

stock

public at 50 cents U. S. currency per share.. If com¬
pany accepts offers from dealers to purchase the
company will

S.

stock,

sell to such dealers, if any, at 32.5 cents
per share for resale at 50 cents U. S.

currency

currency per

Hoffman

(par $1)

underwriters

share.

Gordon Stores Co., Inc.,

June

10

(letter of notification) 30,000 shares ($10 par)'
5%
cumulative preferred
stock. \ Not underwritten.
Offering—Price, $10 a share Proceeds—To finance ex¬
pansion program.




details

i

"

Radio Corp.,

the

common;

see

issue of May 23.i

550,000 shares of common stock (par $5). Under- i'
writers—Blyth & Co., Inc. Offering—Stocks will be of-fered to public.
Price by amendment. 7* Proceeds—Will 7
be added to working capital..

Kurz-Kasch, Inc., Dayton, Ohio (6/18)

June 6

(letter of notification) 75,000 shares ($1 pat> 7
Underwriters-rSmith, Hague &. Co., De¬
troit, and F. H. Koller & Co., Inc., New York. Offering;
—Price is $4 a share,
common stock.

.

.

•

Lincoln Placers Associates, Inc., Seattle, Wash*

,

June 4

(pur $5)'

(letter of notification)

non-assessable

stock

share.

No

137,929 shares of lc parr

stock.

common

underwriting.

•

7

Offering

price,

10c

7

'

•'

-

"

.

■

(6/14)

■

7

)

(letter

common

stock

of
on

beneficial owner'of
of

notification), 4,545-5/llths shares of
behalf of Leo Kamion," New York*
common

shares of stock in the names:

Maibaum and Eva Herman, nominees.
underwritten.
Offering—Price, to be offered for

Sylvia

from time to time at market
go

:

prices.

to selling stockholders.McGrath-St. Paul

/ June

(6/17-20)

,

(

Longines-Wittnauer Watch Co., Inc., New York

June

•

a

For property payments, taxes*

office and incidental expenses.

.

Los Angeles

and

and

>

e

120,000 shares common stock (par $1).
Underwriters—Cohu & Torrey.
Offering—Price to pub¬
lic $6 per share.
Proceeds—$97,125 to redeem preferred
■stock and approximately $400,000 to retire short-term
bank borrowings; balance for
working capital.
For
details see issue of April 4.
r
)'•

competitive bidding

May 31 filed 50,228 shares of cumulative preferred stock; *
(par $50), 4% series (convertible prior to April 1, 1956> ;

Offering price

preference

at

Jack & Heintz Precision Industries, Inc., Maple
Heights, Ohio : (6/25-26)
7/■ 7

™

Not A
sale*

Proceeds—Proceeds
■

Co., St. Paul, Minn.

7

7

(letter of notification) John McGrath, President
of company, is offering "warrants "to purchase 37,000
shares of common stock at $2 a share after June 15, 1946,
and up to June 15,' 1951."" The-option .warrants are
being sold to six underwriters headed by Irving J. Price,
at 2c a warrant.
Net proceeds go to selling stockholder,
•

Mada Yellowknife Gold

Mines, Ltd., Toronto

',7./^777 77 ./Z; 7.7

(6/26)
June

Denver, Colo.

sold

subscription to present common i
stockholders at the rate of /one new/share; for each
three shares held; Proceeds—Refunding improvemehtst*
to physical properties, additional working capitaL
For

March 30 filed

7 filed

Rob-,

250,000 shared of "capital stock (par 40c).
Names to be supplied by amendment;
Offering—Stock will be offered publicly in the U. S. at
40c/a,share (Canadian money).
Proceeds—Proceeds^

Pancoast; Fridley & Hess; Creston H. Funk;
& Co.; Rauscher,. Pierce & Co.,
Inc.; Pitman & Co., Inc.; Gordon Meeks & Co.; Dallas

$75,000, will be used in operation of the
Business—Exploring and developing gold
mining properties.
7

/
•

be

stock will be offered for

Of the 350,000 common

'

see

^ ^?•< V'-

'/V'\

new

will

•

(par $50).
Underwriter—Blyth & Co., Inc.,v New York
Offering—Shares will be offered to public.- Prices by
amendment.

'

shares ($100 par) cumulative preferred stock,
137,333 shares ($15 par) common stock. Underwriters.
—Names by amendment.
Probable .bidders, include
Halsey, Stuart & Co. Inc. (bonds); First Boston Corp.;
W. C. Langley & Co. (stock); A. C.
Allyn & Co., andv
Blyth & Co., Inc. Offering—Bonds and preferred stock

(7/1)

convertible

,7v

42,500

a

20,000

'A-

•

and

share. Underwriters—Safe Deposit & Trust Co; of
as agent for selling stockholders/
Net pro¬
ceeds go to the selling stockholders. *,

and

V

May 21 filed $13,750,000 first mortgage bonds, due 1976j/

Ltd., Toronto, OnL

Underwriters—No-

v)1- /Vv-V -'V*

employees."

For details

preferred and common on the basis of one share
preferred and % share of common for each I
Exchange offer will terminate
July 1. For details see issue of May 2.
of

Baltimore

Hilton Hotels Corp., Chicago

and

share of 5% preferred.

May 23 (letter of notification) 1,504 shares of stock to

•

officers

(par 7
$100) the right to exchange 400,000 of such shares for "~

.

June 7 filed 350,000 shares of common stock

"certain

they

new

Hennegen-Bates Co., Baltimore, Md.

$75

to

as

unsubscribed

(no par) and 100,000 shares of common stock
(par $15). Offering—Company is offering to holders of
its cumulative convertible 5 %
preferred stock

($2 par).
being sold by certain stockholders.
Stock
acquired by selling stockholders in exchange for 432,000
shares common stock (par $3) of American Engineering
Co. Underwriters—To be named by amendment. Offering
—Price to public by amendment.
Stop order hearing
by SEC. For details see issue of March 7.

of hotels.

common

offered

of

of common stock

Iowa Public Service Co., Sioux City, la.

L

behalf of eight stockholders.

offering

stock

are

on

public

International Paper Co., New York
April 26 filed 400,000 shares of $4• cumulative preferredl

and

»

be

-

,

Feb. 27 filed 215,000 shares of common stock

Shares

directors

to

U.

7

(6/17)

shares, 50,000 will
be offered; by the company without underwriting to
)f-fnayv:determihe;;:.;;;:)|;);//^
certain key employees of the company. The 20,000 shares
of preference stock are being sold by C. N. Hilton, Presi¬
Glenmore Distilleries Co., Louisville, Ky. (6/20)
dent of the company.
Proceeds—Net proceeds 'to the
May 24 filed 150,000 shares of class B (par $1) common/I
company will be added to general funds.
The company
stock (non-voting)..
Underwriters—Glore, Forgan & Co.,k said it has undertaken an improvement program for the
and W. L. Lyons & Co.
Offering—125,000 shares will)/ Plaza Hotel, New
York, contemplating an additional ex¬
be offered to the public and
25,000 will be offered to
penditure of $1,500,000, and it has also agreed to make
certain officers and
employees of the company.
Price
an investment of
$160,000 in the Palm Beach Biltmore
by amendment. Proceeds—Net proceeds will be added
Corp., which has contracted to purchase the Palm Beach
to general funds to be used as
working capital.
Biltmore Hotel, Palm Beach, Fla.
Business—Operation
time to

will

Hayes Manufacturing Corp., Gr/ Rapids, Mich/

be sold

General Shoe Corp., Nashville, Tenn.

May

c"*

,

a

Proceeds—Construction and equipment.
issue of May 23.

$9,625.

stock.

eral Finance

not,

determine,, make

Secretary, 12,600 shares.
Under¬
writers—Brailsford & Co.
Offering—Price to public
1

)

shares., The remaining 14,000 shares

Harrison Wholesale Co.,' Chicago, III.

!

Corp..

stockholders and holders of stock
purchases war¬
rants for subscription at the rate of one common
share
for each five shares held. Price
by amendment. Under¬

Securities

Vice-President

Chemical

writers will purchase unsubscribed shares
plus an addi¬
tional 65 shares. Underwriters
may or may

April 30 filed 85,600 shares of common stock (par $1).
Shares are being sold by two stockholders, Albert L.
Arenberg, President, 73,000 shares, and Louis Sisskind,

,

International Minerals &

mon

fer & Arnold, Inc.
Offering—Price, $50 a share. Proceeds—To retire bank Idans and for working capitaL

May 17 filed 150,000 shares of 4% cumulative first pre¬
ferred stock (par $100) and 150,000 shares of 4% cumula¬
tive convertible second preferred stock (par $50).
Un¬
derwriters—Blyth & Co., Inc.
Offering-r-Holders of
150,000 outstanding shares of 7% cumulative preferred
stock are offered the privilege
of exchanging their
shares for 150,000 shares of the first preferred stock
end 150,000 shares of the second preferred on basis of
one share each (plus a cash adjustment) for each share
of 7% preferred. The exchange offer expires at 3 p.m.,

General

share.

Beaumont, Texas

Foundry & Machine Co.

The number of shares will be that
amount which

May 21 filed 145,834 shares of common stock (par
$5]L
Underwriters—White, Weld.& Co. Offering—Company
proposes to "issue 131,769 shares initially to present com¬

June 5 (letter of notification) 6,000 shares of 5% cumu¬
lative preferred stock (par $50). Underwriter—Kircho-

working capital.

General

Harris

/'

•'

'■'>

Chicago

due 1969.

§;

-

■

■

result/from

..

Corp.; The First Boston Corp.;;
Halsey, Stuart & Co. Inc.; Blyth & Co.; Harriman Ripley
& Co.
Proceeds—Net proceeds, together with a $2,000,-/;'
000 bank loan will be used to redeem its $27,300,000
of first mortgage and refunding bonds, series D 3Vz%t

shares will be sold to underwriters

who will offer them to the

Webster

*

,

funds.

Underwriters, by amendment.
Bonds will be sold at
competitive bidding.
Probable bidders include Stone
&

common

dividing 300,000 by the closing sale
price for the common s.ock on the Chicago Stock Ex¬
change on the public offering date.
Underwriters— /
Brailsford & Co., and Kalman &
Co., Inc. Offering—
Price, $25 a share. Proceeds—-To be added to general

Co., Jacksonville, Fla.

Co.,

*

shares of

(EDST) June 12. Purposecapital.
For details see issue of
p.m.

augment working

will

May 24 filed $27,000,000 first mortgage bonds; due 1976.

Remaining 28,762 shares of preferred

common

Utilities

States

Rights expire" 3

given the right to
$22 per share at

at

seven

'Vi\

fered to present shareholders at $3 per share.
Holders
of approximately 200,000 shares have agreed to waive
their preemptive rights.

Cbrp«r New York

share for each

one

are

Indiana Steel Products Co.,
Chicago
-m
June 4 (letter of
notification) shares of $1 par common

Business—Exploring for

Gulf Atlantic Transport'n

May 27

additional: stock

•

estimated at $300,000, will be

operations.

record

May 2.

Jan. 17 filed 270,000 shares of common stock (par $1).
Underwriters—Blair & Co.
Offering—Stock is being of¬

May 31 filed 40,000 shares of 5% cumulative convertible
preferred stock (par $25) and 170,000 shares of common
"stock (par $1).
Underwriters—Allen & Co.
Offering—
11,238 shares of new preferred will be offered in ex¬
change to holders of $7 cumulative (no par) preferred |
stock on basis of one share of old preferred for 4.6 shares
of

mining

a

the

to

the rate of

ore.

(6/19)

:

for

proceeds,

of

subscribe

Gubby Mines, Ltd., Montreal, Canada '(6/19/
May 31 filed 500,000 shares of common stock.(par $1).
Underwriters—SabisIon-Hughes, Ltd.* Toronto.
Offer¬

Offering—Prices by amendment."

writers.

.Offering—Common

stockholders

■

Alex. Brown & Sons.;

19461

Mosle & Moreland.

6

(letter of notification) 150,000 shares of $1 par
common stock;
Underwriter—Grubbs, Scott & Co. , Of¬
fering—Price, $1 a share.
Proceeds—Of the net pro¬
ceeds estimated at $125,000, the company will use $67,500

-

Thursday, June 13,

Houston

(Texas

) Oil

Field

May 13 filed 100,000 shares of

Material

common

Co.,

(par $1). Under¬

writers—Dallas Rupe & Co.; Dittmar & Co.; Etewar,
ertson

&

Milton. R. Underwood

Inc.

Underwriters

estimated

company.

at

—

v

iVolume 163

Number 4498

Marathon

THE COMMERCIAL & FINANCIAL CHRONICLE

Corp., Rothschild, Wis.

zm

(6/18)

May 23 filed 420,000 shares of common stock (par $6.25).
Underwriters—Lee Higginson Corp.
Offering—Price by '
amendment.
Proceeds—Refunding; to complete con¬
struction of Canadian pulp mill; to construct a building
at Menasha, Wis.; balance for working capital.
For details see issue of May 30. yy /•//y.y
::/y/./'^/x:x

New Issue Calendar
(Showing probable date of offering)

■

\

•'

i

U

.

•

'/

'

:*

:

r

*

*'

'

June

V,

•

.*'•'

•''»*.>p: V;*!1

Maryland Casualty Co., Baltimore

'/

Hudson Motor

^V-vv*'

/ '

Underwriters—Merrill

June
x

will

be

offered

stockholders in ratio of one share of cumulative preferred for each 3% shares of common held and one
share of convertible preferred for each 1% shares of

r

common

!

;

Aviation

Chillicothe, Ohio

.

.

(6/27)

United-Rexail

each

five

shares

Twin Coach Co,—
June

its

its

treasury to certain key employees
Proceeds—General corporate funds.
Midland

Cooperative

stock

at $5

held

derwriters.

Offering—Price to public will range from
unit in January, February and March, 1946,
.to $103 per units in October, November and December,
1946.
Proceeds—To pay off first mortgage loans and
for operating capital.
For details see issue of May 9.
'

per

'

.

x

Mill City Corp.,

'

'

•

,

,'V

'

,

•

Mines

-

■

'

common

Offering—Price, 50 cents a share.
Proceeds—For working capital.'

Operating,

No

common

Underwriters—Jesse R. Foster and Carl W. Har-

rell, Seattle.
Offering—Price, 12% c a share.
Proceeds
—Payment of loan, acquisition of property, mining and
development and for operating capital.
'
,

,

:

Missouri Power & Light Co., Jefferson City, Mo,

May 22 filed 7,500,000 first mortgage bonds, due 1976,
$4,000,000 ($100 par) cumulative preferred stock.
Bonds and stock to be sold through competitive bidding.
Probable bidders include

Halsey, Stuart & Co. Inc. (bonds); The First Boston
Corp.: Blyth & Co., Inc.: Coffin & Burr. Inc.: Kidder,
Peabody & Co.; White, Weld & Co., and Shields & Co.

(jointly)r- Proceeds—Principally refunding.
see issue of May 23.

For details

Monogram Pictures Corp., Hollywood,
(6/24-28)

May 31 filed 224,781% shares of

public.

Calif.

stock (par $1).

Price by amendment.

Pro¬

ceeds—Of the net proceeds, $35,000 will be used to dis¬

charge the balance of outstanding notes, $200,000 will be
used for plant
to working

expansion, and the balance will be added

capital.

Motorette Corp.,

June 7

stock

Buffalo

Not underwritten.

in units of 22 shares at $60 per unit..
ters for manufacture of




Cable

.......Preferred
..Preferred & Common

Corp
Corp—

Bonds

Thalhimer

Bros.

.Common

—....—

Stratford Pen Corp

Common
'—.........Preferred
—

Inc

Sift®
Rome Cable

..—Preferred

Corp...——

July 9, 1946
.....Common

Budd Co

•

Mountain States Power Co.,

/

ceeds will go to

common

Purchase of

quar¬

Wash,

y v

Standard Gas.

stock

Business—Public utility.

60,000 shares of common stock (par 10c).
Underwriters
—Amott, Baker & Co., Inc., New York. Offering—Stocks

:

| will be offered to the public in units of one share of
/,/ Namm's Inc., Brooklyn, N. Y.
(6/14)
class A and one share of common at $10.10 a unit.
PreMay 3 filed 100,000 shares common stock (par $1). The f ceeds—Net proceeds, together with $700,000 to be real¬
statement also covers 45,000 shares of common issuable
ized from the sale of series A and B bonds, will be used
upon the exercise of warrants. Underwriters—Van Alfor construction of a plant on Neville Island (near Pitts¬
styne, Noel & Co. Offering—Price to public by amend¬
burgh) and for equipment. Any remaining proceeds will
ment.
Proceeds—Proceeds will be added to general
■■'

corporate funds and used, as conditions permit, for
purchase of additional inventory, etc.
For details see
issue of May 9.
"

lf; go into working capital.
•

.

1

Cellulose

'

:'/(6/19)

•

Corp., Syracuse, N« Y.

:/;r:/y:;{/■;/:•//•

10

common

//

•,

will

be

sold

-to

on

common

basis

of

purchased.

one

(letter of notification)
stock.//. Not

warrant

for

each

x

of underwriters by

amendment.

loans, to purchase plant and equipment at

Weld & Co.-Shields & Co.

estimated

additional working y Co., and Stone &

capital.

yyy

Net
y

National Gypsum

on

market.

new

proceeds will be used to

stock. Un¬

plants,

Proceeds—Costs

etc.

For

Inc.

Oneita

June 11

for

stock.

details see

ture.

San Diego, Calif.

May 21 (letter of notification) 18,500 shares of
stock.

Proceeds-

finance construction of

For details see issue of May 30.

Offering price, $4.12Vz a share.

?

common

Underwriters-

For general corporate purposes.

Knitting Mills, Utica, N. Y.¬

(letter of notification) 1,977 shares of preferred

Underwriter—Mohawk Valley Investing Co., Inc,

Offering—Price, $110
June 24

National Iron Works,

Nelson Douglass.

bidders in-»

(jointly); Morgan Stanley &

Webster Securities Corp.

property additions.
#

-

common

derwriters—W. E. Hutton and Co., and Blyth & Co.,

two

Probable

Corp.; Glore, Forgan & Co.; White,

Co., Buffalo, N. Y. (6/17-19)

May 21 filed 275,000 shares ($1 par)

of

h

May 29 filed 204,153 shares of common stock (par $8),

elude First Boston

an

1

10 / The stock will be sold at competitive bidding with names

Proceeds—Estimated net

as

Offering—Price,

.

proceeds of $1,020,000 will be used to pay off $61,000 of

$751,620 and the balance

19,997 shares of $5 par

underwritten.

■'

purchase

the

—

For working capital.
"
y///y//:yy • // -//''»•
*. yy xy/vx/y.Ohio Edison Co., Akron, Ohio

common stock (par $1)
20,000 shares of common.
Underwriters—Floyd D. Cerf Co., Inc.
Offering—Stock
will be offered to public at $6 a share.
The warrants

warrants

.

/ $10 a share.

May 31 filed 200,000 shares of

with

'

| New Enterprises, Inc., Boston, Mass.

June

National

/
v

common

Stock will be sold

Nevada-Stewart Mining Co., Spokane,

•

Albany^ Ore. (6/25)

(no par). y June 6 (letter of notification) 50,000 shares of common
Underwriters—To be determined by competitive bidding. | treasury s.ock.
Offering price, 40c a share, No underProbable bidders include Blyth & Co., Inc.; Kuhn, Loeb f writing.
For development of mining claims in Shoshone
& Co. and Smith Barney & Co.; (jointly);
(• County, Idaho, and for other mining operating expenses.
Harrimanjj
;" Ripley & Co.; The First Boston Corp. Offering-4-Share^
which are owned by Standard Gas & Electric Co^ and
Neville Island Glass Co., Inc., Pittsburgh
/ conslitute 56.39% of the company's outstanding common,
pyy{::/;(6/24) x/ -^y/yy yy/-y/y
will be sold at competitive bidding.
Proceeds—Net pro¬
June 3 filed 60,000 shares of class A stock (par $1) and
140,614 shares of

issue of May 23.

motoret/es, machinery, working

capital, etc.

General

Hilton Hotels

.Common

...Preferred and Common

Offering to be based

'

(letter of notification) 15,004 shares of

(par $1).

.....

.Common

June 6 filed

construction
•

El Paso Natural Gas Co..—Preferred and Common

Common

... -

FR Corp.

shares of

Underwriters—Emanuel, Deetjen & Co. Offering—Stock
will be offered to

i®46

July

Chicago & Southern Air Lines, Inc. (vtc.)-Common
Detroit Aluminum & Brass Corp.........Common

Portland Gas & Coke Co...

cost of
common

Paper Co....
Willys-Overland Motors Inc...

Preferred

.1../...!

Common
Preferred
.Common
Pfd. & Common

.......

......

Reeves Brothes Inc

/

and

Underwriters by amendment.

.

Corp.

27, 1946

Suiherland

19, 1946

Z/ZiiZ

Dazey Corp

.

Inc., Seattle, Wash.

May 31 (letter of notification) 500,000 shares of
stock.

"

1

'

Denver, Colo.

June 5 (letter of notification) 100,000 shares of

capital stock.
underwriting.

Mead

Corp.

Minneapolis

May 8 filed 10,500 shares of series D non-cumulative
4% preferred stock (par $100).
Underwriters—No un-

•

General Shoe

Common
^.Common

June 20, 1946
American Investment Co. of Illinois. ^, / /Preferred

in V

;

Wholesale,

June

...Common

& Supply Co....
-.Common
Supply. Cofp..—Pfd. & Common
{Gubby Mines Ltd
Common
National Cellulose Corp..«.
Common

share.

a

Common
—Common

General Builders

.

common

Equipment Trust

Ducommun Metals

by amendment.
20,000 shares of
common to L. H.
Knopf, President of the company, and
10,000 shares to H. C. Castle, Vice-President, at the same
price the common shares are sold to underwriters.
It X
of

26, 1946

RR

1946

18,

........

Candego Mines Ltd.
Cyprus Mines Ltd.

Shares will be offered to public.
Price
In addition, the company plans to sell

shares

Ohio

&

Mada Yellowknife Gold Mines Ltd—Capital Stock

Corp...
Common
Pennsylvania El. Power/Co. (11 a.m., EDST) .Bonds
Sal: Dome Oil Corp
:
Ctfs. of Interest

Meyercord Co., Chicago (6/17-21)
May 27 filed 100,000 shares of common stock (par $5).
Underwriters—Kebbon, McCormiek & Co.
Offering—

477

Common
June

Marathon

i

sell

England Tel. Co..—Capital Stock

Van Norman Co

Kurz-Kasch Inc. .^._..^..i...-._u...._._..Common

■

.

Southern New

...Common

Preferred and Common

Peabody Coal Co

Portsmouth Steel Corp
Towmotor Corp.....

be added to working capital.
•
■/./
y-xxy. \y/yyyy•////;/X^

$100

Mountain SCates Power Co

-..Preferred.

Corp.
Barium Steel Corp.
i
City Stores Co.............

$4 per
public by y
underwriters at not less than $4.75 nor more than $10.
Proceeds—To repay unsecured bank loans; to pay first y
instalment on purchase of plant from RFC; balance to

will

Industries Inc.,
Preferred and Common

.^..Common

Allied Stores

at

held

Common

& Heintz Precision

Jack

Baltimore

June

for

'■

■

.....Capital Stock
....Preferredi

Consol.* Retail Stores Inc...

Wheldon Inc.

Unsubscribed shares to be offered to

1946

25,

Flying Freight, Inc.-

Drug Co

(6/17-20)

also

June

Aeronautical Securities Inc

Common

Manufacturing Co., Los Angeles

shares

Machinery Corp....

.//..Capital Stock
Viewtone Television & Radio Corp.......Common

May 17 filed 370,000 shares of common stock. | Under¬
writers—Sutro & Co., and G. Brashears & Co.
Offer- %
ing—To be offered initially to shareholders in ratio of

i

Common
Preferred

U. S. Hoffman

i..i._CapitaJ Stock

United Printers & Publishers Inc..^

,

..Class A

Timely Clothes Inc.—

Manufacturing Co.../
.Common
,Meyercord Co.
j...........^..iCommon;
National Gypsum Co.
Common
Purex Corp..^../.^—L.-Capital Stock
Refined Syrups & Sugars Inc._____^._
..Common
Steep Rock Iron Mines, Ltd
.....Capital Stock

;

new

—Preferred
.....Common

Menasco

June 11 at $53 a share in ratio of one new

...—Common

Neville Island Glass Co

Harris Foundry & Machine
;Co,...v_——Preferred
Hoffman Radio Corpi.3...^..
L_
Common

-

Common

Ltd.../.

Funsten (R. E.) Corp...,
Monogram Pictures Corp

Common

...

Common

Co

Gas

Mines

Preferred and Com.

Grocery Stores Products Co.

{share for each seven common shares held. Exchange and {
'subscription privileges expire June 26.
/

two

Corp.....

1946

24,

Dewey & Almy Chemical Co.--Debs, and Common

Preferred

......Debentures

Douglas & Lomason Co.../

plus a cash payment. Second preferred shares initially
is being offered for subscription to common stockholders

share.

;

General Corp..
Consolidated Vultee Aircraft

cumulative preferred stock, series A, and $5.50 cumula¬
tive preferred stock, series B, on a share for share basis,

•

Western

Cardiff FluorLe

{///,''
Common

Co._

Carriers &

{ferred stock is being offered in exchange to holders of $6

Menasco

y

Preferred

All American Aviation Inc

Booth Fisheries Corp
Preferred and Common
California Electric Power Co.—
/
12 Noon (EDST)_____
...Bonds and Common

.

on

Foods

;

Corp. //y

Beatrice

1946

Common

—

June

Common

—

.//June 17,

May 21 filed 70,000 shares ($100 par) 4*4%: cumulative v.
preferred, stock and 101,056 shares ($50 par) 4% cumula- >•
tive second preferred stock.
Underwriters—Drexel &
Co., and Harriman Ripley & Co., Inc. Offering—Pre- :

of record

Common

«;

Denman Tire & Rubber Co

Mead Corp.,

'

Common

Arkansas

held.

Subscription price by amendment. Pro¬
ceeds—Net proceeds will be used to pay entire indebtedness of Maryland Holding Co., Inc., a wholly owned
subsidiary, to Reconstruction Finance Corp.

1946

14,

Common

Reynolds Pen Co
Riegel Textile Corp

Namm's Inc.

Offering—Stocks initially
"subscription to present common

for

20, 1946

Glenmore Distilleries Co

Common

;

Duggan's Distillers Products Corp.-/
Longines-Wittnauer Watch Co.—

Lynch, Pierce,-

Fenner & Beane, New York.

■j

Car Co.

/

y

^.May 29 filed 239,940 shares ($10 par) cumulative prior
^preferred stock and 479,880 shares ($5 par) convertible
preferred stock.

June

*

■

v-

13, 1946

to pay

on

share. Stockholders will vote

Proceeds—Net proceeds of this issue will be used

the appraised value of the preferred

which stockholders
mand

per

approving various changes in capital struc¬

shall file notice

payment for their shares.

(Continued

on

page

s

ock, as to

of dissent and de¬
,

3254)

y

/vy //
/.

3254

rafi commercial
•

(Continued from page 3253)
Pacific Safety Equipment Co., Inc.,

June 7 filed

Reno, Nev.

salesmen who will receive

Underwriting, through
maximum of $2.50 a share.

a

Pacific Telecoin Corp., San

will

Francisco, Calif.

^at-dik Food Products Corp., Row York
Ma^^29 filed 175,000 shares of capital stock (no

a

Underwriter—George F. Breen, New York.
;

Apts., Inc., East Orange,

N. J.

June

7 (lettef of ndtifiCatiori) 3,000 shares of no pa*
capital stock On behalf of Elmwood VillageV 106,' Not
Offerings-Price, $100 a share.
Sale of
stock is to be made by Lyman, Inc., East Orange, N. J.,
as agent for the seller.
Proceeds go to the selling stock¬
holder.
>

facture of automobiles at Willow

Stoc^ will be offered to public at $16 a share with tin- I

the remaining 20,000 shares are being sold by two stock¬
holders. ; Proceeds—Working capital, purchase ^equip¬
Graham-Paige are /i ment and plan., etc.. For details see issue of May 30,
'

Segal Lock & Hardware Co., Inc., N. Y.
r
30 filed 738,950 shares bf common (par $1). tindetWjtiters—Floyd D. Cerf & COI^ Offering—Holders" of
.

March

stock, 7% preferred stock and $2.50 cumulative
preferred stock afe given right to Subscribe to new

Commori

common

v

shares.

writers.

Underwriters—There

Offering—The 4V2%

will

Underwriter—Martin, Hefler,
Offering:—price, $6.50 a share. Proceeds
;
J.

no

•/

Underwriters—Blyth & Co., Inc.
Offering—100,000
are being i sold by 24; stockholders and
65,000
shares are being sold by company.
Price; by amend¬
ment*
Proceeds—To pay bank loan, additions and im¬
provements, etc. For details see issue of May 23.

.

<

•

,

11 filed 80,061 shares (50C pari COiftmoii stock.
Underwriters—No underwriting. Offering—Company! is
offering to exchange 29y2

shares of 50c

par

only); Smith, Barney & Co. (preferred only); Kuhn,
JLoeb & Co.,. and Lehman Brothers (jointly). Offering
-—Prices to public by amendment.
of March 28.

.

For details

see

•

Refined Syrups & Sugars,Inc.,

(6/17)

•

•

.

;

;

.

;

(letter of hotifkation) 50/000 shares of $1 par>
Common stock.
Not undCrWriitep.
Offering—Price, $6
a shard.
Proceeds—For improvements to plant and
equipment and working capital.
>
i.\
,

•

Republic Indemnity Co. of America, Tucson, Ariz.

hotificatiorf) 19,933% shares ($10 par)
Offering price, $15 a share. No under-

stock.

(Pa.)

May 17 filed $30,000,000 first mortgage bonds, series
due

1975, guaranteed unconditionally as to payment of
principaPand interest by Susquehanna Power Co. Bonds
will be sold through competitive bidding.
Probable
bidders include, Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co., Shields & Co. and White, Weld & Co.
(jointly); Morgan Stanley & Co. Purpose—Refinancing
Bids Invited—Bids for the purchase of the
bonds will be received by the company before 11 a.m.
,(EDST) June 18 at 900 Sansom St., Philadelphia, the
program.

interest rate to be specified in the bids.

Hoboken, N. J.

debentures

due

1^ 1964,
Underwriters—
Blair & Co., Inc.
Offering—Price to public by amend¬
ment.
Proceeds—Payment of promissory notes aggre¬
gating $8,000,000. For details see issue of May 16.
^
•

Portland Gas & Coke Co.,
Portland, Ore.
June 11 filed $10,000,000 first

laws of the States in which the company is now trans-

-

and

>

Company expects to grant options to
shares of common stock to certain of
approximately $46.56 per share.

vice,|n the State of Connecticut.
Spiegel^ Int., Chicago

acting business.
•,, Resort

Airlines, Inc., Pinehurst, N. C«

-

June 5

(letter of notification) 100,000 shares of $1 par
common voting stock.
Offering price, $2.25 a share.
No underwriting*
For additional capital.
,
<

mortgage

due 1976.

bidding.

bonds, series

Underwriters—To be decided by competitive
Probable bidders- include Blyth & Co., Inc.;

Smith, Barney & Co.; Halsey, Stuart & Co., Inc.; The
First Boston Corp., and Kidder,
Peabody & Co.
Offer¬
ing—To be offered to public.
Price—To be decided by
competitive bidding.
Proceeds—Net proceeds will be
used to retire the

long-term debt as follows: $5,751,000
refunding mortgage 5% gold bonds, ex¬
tended to 1950, at 100;
$2,625,000 first lien and general
mortgage gold bonds, series 4 y2s, due 1940, extended
to 1990, at 100, and $371,000 Portland Gas Co.-noncallable first mortgage 5% gold
bonds, dixe 1951, at
100.
Remaining proceeds, together with proceeds from
the sale of $500,000 serial notes, will be used to provide
additional
production, transmission/ and distribution
facilities. Business—Supplying manufactured gas.
of

first

and




filed 117,000 shares of common stock (par $2)

Options to purchase 111,800 shares of common. Un- i
derwritefs^-No
underwriting.0Offerin|—-101,50(T .are
issuable or have been issued under options* In addition

purchase 15.500
its employees at
^

,,

Stratford

Reynolds Pert Co., Chicago (6/20)
May 4 filed 400,000 shares of common stock (no par),
100,000 shares are being sold by company and
300,000
by
stockholders.
Underwriters—Names
by
amendment.
Reported Allen & Co., probable under¬
writer.
Offering—Terms by amendment.
Proceeds— ?
Net proceeds to the Company will be added to Working *
capital.

Riegel Textile Corp., New York (6/26)
May 29 filed 50,000 shares preferred stock, series A (no
par). Underwriter—Dillon, Read & Co. Inc. Offering—»
By amendment. Proceeds—Net proceeds will be applied >
to the

repayment of $2,000,000 of 90-day notes held by
Hanover Bank and Trust Co.,

May

29 filed 63,276

New York, re¬

of

Offering—Shares will be offered for sub-

three

shares

Proceeds—Net proceeds will be

of

a

construction program and

tories.

-

,

28 filed certificates of interest

cates in

-

one

share interest

expire June 17 at 3 p.m.

and

;

wilt be available for general)

Sterling Electric Motors, Inc., Los

cer-

Rights

Proceeds—Exploring and

April 4,

de¬

Angeles *

deben-j

shares common s Oek (par]
Underwriters—Maxwell, Marshall &; Co. Offer|ng|
$1,000 each and?

purchase of 100 commpn shares. In. addition, four. stockcompany

will sell to the principal under¬

Proceeds—To

finance

shares at '7 cents a

cons

ruction of addi¬

purchase equipment and machine

working capital, etc.

Sutherland Paper Cd.| Kalamazoo, Mich. (6/27)

(6/47)

offering the

$1).;

For details «ee issue of April 4.j

tools; retire current bank loans and

represented thereby for each

see issue of

funds

tional factory building;

($10 par) common sto^k.
(Inc.).
Offering—
subscription to common stockholders

May 21 filed 57,400 shares

for 800,000 certifi¬

share of common stock held at 58 cents per share.

veloping. For details

general

warrant

.•

tificates of interest to stockholders of record June 1 on
basis of

the

corporate purposes.

hoiders of (he

Hall & Co;

UnderwritersTT-Harris,
Stock is offered for

writers—Cohu & Torrey, New York, and Yarnall & Co.,

Offering—Company is

|
capital stock (par

writer warrants for 19,591 common

overriding royalty in oil, gas and surplus. Under¬

Philadelphia.

March 27 filed 500,000 shares of

Underwriters—Otis & Co.
Offering—Price td,public -byj
amendment*
Proceeds—Net proceeds will be added*to ?

$3.50 a share; Each $1,000 of debentures will,
have/attached a detachable stock-purchase warrant fori

to carry larger inven¬
■"'

4

commpn at

of common held.

Salt Dome Oil Corp., Houston, Texas

March

LtdL, Ont., Can.

iv/:: ;v.

6/17*21

$1).

used toward completion

.

Steep Rock Iron JMihes

—Debentures will be sold to public at

shares of cumulative convertible

preferred for each

!

(7/1-5)

tores, due 1961, and 29,709

,

preferred stock (par $30)* Underwriters—Carl M. Loeb,
Rhoades & Co.

Pen Corp.

filed 100,000

May 27 filed $500,000 15-year 5% sinking fund

(N. Y.) Cable Corp. (7/8)

Rome

¥

shares of common stock (pa? $1).;
Underwriters—First Colony Corp.; Proceeds—To selling
stockholders.
Offering—Price to public,-$9% per share.
June

scription to Cofnmon stockholders at rate of one share

(i/lj)

16.
Proceeds—Net proceed^ estimaed' at
$11,970,000, will be used to repay in full advances from
American Telephone5 and Telegraph Co.
Company ^siaid
such advances are expected to aggregate approximately
$5,300-000 by the time the proceeds from the sale of the
expire July

Mayfo

maining proceeds will be added to gejiefal funds.

Jan.-

holders of record June 25, in the ratio of one share for
each four shares then held.
Subscription warrants Will

<

May 9 filed a $7,000,009 15-year 4% debentures due
April 1, 1961, and $1,242,300 20-year 5%% cumulative
income

$100)..

June 6 filed 100,000 shares of capi al stock (par

For purpose of complying with the statutory
admission requirements of certain States in which the
company has applications for license pending, and for
meeting reserve requirements of the various insurance

Central

Pittston Co.,

Ertglrtnd Telephone Co., New;

nishihg communication services, mainly telephone; ser-*

writing*

issue

Electric Power Co.

New

(6/23)

capital s ock are received* The remaining proceeds Will
be used for general corporate purposes. Bnslness-^-Fur^

June 3 (letter of
common

the New York Stock'

on

Underwriters—No underwriting. • Offering—Shares' will1
be offered for subscription; at $120 a share to stock¬

June 7

*

Southern
Haven

r

Yonkers, N. Y.

.

I

(letter of notification) 13,000 shares of common
Stock will be offered

Exchange through Lewisohn & Co., at market (approxi¬
mately $7), but in no event shall ;hcr total price to the
public exceed $100,000. Proceeds Will go to General
Development Co., owner of the stock.- Offering iS' to
bO made any timO Within next three months-, depending
upOn:market 'conditiOrtsKM

of which

Philadelphia

exploration development work in mining property* |

609,009

stock.

common :

1,983 shares of common of Grdce
Rutherfordton, N. C., not now owned
by it.
It also is offering to exchange 88/lOOths of a
share of common for each of the 24,500 shares of com¬
mon stock of Warrior Duck
Mills/ Spartaftburg* S. C.,
not now owned by it. Business—Cotton textile business.

iiiider-*

Co./ The* (bonds

/

Pof

of

South Amerlcait Gold & Platinum Co., New York

Cotton Mills Co.,

each 6%

ble bidders include Halsey, Stuart &

Capitol Mining Co.

||

June 4

Reeves Brothers Inc., New York (7/1)

June

preferred will be
offered for exchange to holders of company's 6% pre-*
ferred on the bdsis of 6% shares of prior preferred fo*

March 21 filed $23,500,000 first mortgage' bohds, due
1976, and 101,000 shares of cumulative preferred stock,
series C, par $100. Securities will be sold at competitive
bidding, and interest and dividend rates will be filed
by amendment. Underwriters—By amendment. Proba¬

|
}'
|

.

prior

Pennsylvania Electric Co., Johnstown, Pa.

for

Skylines Inc*/ Salt Lake City, Utah
j i
June 10 (letter of notification) $100,000 of common stobk. i
Not underwritten.. Offertng-rPrice, $5 a share* ; Pi-oeeeds^-Purchase of airplanes, hangars and equipment- tor
conduct general airline business.^
^
v.
^

stock for each of the

preferred plus dividend arrears to May, 1,1946*
With each share of prior preferred exchanged for 6%
preferred, a wararit will be issued entitling the holde*
to subscribe for one-fifth of a share of class B common!
at the following "prices: up" t o June 30, 1947, $17.50 si
-share; to June 30, 1948, $20 a share;* to June 30, 1949;
$22.50 a share. After July 1, 1949, the-warrants will be
void;
The common stock being registered will be xe-»
served for issuance upon the exercise of the warrants;
Proceeds—No proceeds will be received. Business—Min¬
ing, purchasing, selling and distributing coal.
-

tommori

•

shares

-

be

share Of

May

Purex Corp., Ltd., South Gate, Calif.
(6/17);
May 21 filed; 165,009 shares ($1 pair) capital stock.

June 6 filed 880,561% shares of 4% % prior preferred
\stock (par $20); 176,112 shares of class B common stock
(par $5) and 880,561 warrants to purchase class B com-*
mon

j

go to the selling stockholder.

together with all dividends accrued thereoti. Exchange
offer is conditioned on purchase of remaining 8,000
shares of 6% cumulative preferred and of the 31,000
common stock purchase warrants' by uhiderwrite*.
Pro-*
ceeds—Purchase or construction of a plant and nec¬
essary machinery and equipment.
For; details see issue
■v of .April-

(6/25)

one

Run, Mich.

Princess Shops, Inc., New York

Bobbins & Co.

9,886 shares 6% cumulative preferred
i (par $100); 31,000 common stock purchase warrants and
31,000 shares of common,; issuable upon the exercise of
i the warrants.
Underwriters—Butcher & Sherrerd, Phil-i
j adelphia.
Offering—1,886 shares of 6 % cumulative pre^
ferred are offered in exchange (one new share for id
old shares) for shares of 4% preference stock ($10 par),

Peabody Coal Co., Chicago

fate of

(letter
notification)
shafes of common
June 7 (letter of notification) 4,400 shares of common 4
stock." Offering—Price 20 cents a share.
Underwriters
stock on behalf of LouiS Schwartz, President and Treds-1
—Standard Secorities Corp., Spokane, Wash* Proceeds—
urer
of the Company.

March 29 filed

•

•

at

equipment for modernization of present facilities, etc
For details see issue of April 4.
- V
Silver

,

Paulsboro (N. J.) Manufacturing Co.

,

shares

each two shares of any such stock held. Price by amendment.
Proceeds—Purchase of additional machinery sfnd

underwritten.

:

par).
Offering—

derwriters receiving a commission of $2 a share. Of the
total being offered company is selling 155,000 shares and

share.

estimated at $3,000,000.
Such proceeds will be used to
purchase the Portsmouth works and to provide funds ior
general corporate-purposes. ■ Business—Corporation Was 't
organized in Ohio and proposes to engage' in the manu¬
facture of steel products*
It has contracted to purchasethe present Portsmouth Works of Wheeling Steel Cofp.
for $12,000,000.' These properties' consist of the Ports¬
mouth Works; Emperor Coal Co.; inventories, work in
process arid working capital.
Sales Contracts of the new
company will include steel Sheets to Kaiser-Frazer Corp.v
and Graham-Paige Motors Corp. for use in the manu¬

'

—

to Kaiser-Frazer and

common

Thursday, June 13,1946

/

stock (par $1).\
Offering—Shares will be Of¬

purchase 100,000 additional shares at $10

sale of

"

Parkview Cooperative

(6/26)

common

Proceeds—Net proceeds from the public sale of common
are estimated at $9,075,475 and net proceeds from the

May 31 (letter of notification) 58,000- shares of preferred
stock (par $5) and 58,000 shares of common stock (pa*
$10). Underwriters—Kobbe, Gearhart & Co., Inc., New
York.
Offering—Price $5.10 a unit consisting of one
share of preferred and one share' of common.
Proceeds
—For purchase of additional equipment, retirement of
indebtedness and for working capital.
■'
•

Steel Corp.

fered to the public at $10 a share.
Kaiser-Frazer Will
purchase 200,000 .additional shares and Graham-Paige

of gas and fire detection devices.

.

(Ohio)

1,025,000 shares of

Underwriter—Otis & Co.

May 31 (letter of notification) 10,000 shares of common
stock. Offering price, $10 a share. For the manufacture
i

Portsmouth

^

& financial chronicle

of record June 10 at $40 per share, on

basis of one hew

,

share
26.

for

each

five shares

Unsubscribed

through

shares

underwriters.

held.

will

be

expire Jqne

offered

to

public

Proceeds—To repay outs and-

ing term-loan notes amounting to
ments and additions.

Rights

$1,500,006, improve¬

For details see issue

of May 23.

Volume 163

Number 4498

THE COMMERCIAL & FINANCIAL
CHRONICLE

•

Thalhimer Brothers, Inc., Richmond, Va.
June 1° filed 25,000 shares cumulative1

(7/1)

United-Rexall Drug, Inc., Los Angeles

prefefredt stocK

'

amendment. "•

.

Proceeds—General

Company anticipates that

corporate

stock

:

normally sold in drug stores, working capital, etc.
details

Timely Clothes, Inc., New York (6/24)

•

»

I•

{>'•

-

•

'

•

June 6

(letter of notification)

eight

shares held at $20 per share. All
rights expire June 26.
Similar rights with respect to the
preferred and common
stock are being offered to holders of
outstanding options.

For

May 30.'

Proceeds—Net proceeds will
funds.
AA

/

par

cohimon

stock to be offered to present common stock¬
holders at the rate of one-half share for each share held.

•

*

®

-

,

t

f

I

*

•
t-

•

.

'

.

;

'

'

■

J,

^

Towmotor

J- '

0

'

L

'

/,

■

'

*

'

&

fl

I

J

<■

June 7 filed 190,000 shares of

1

*

C6rp., Cleveland, Ohio

,■
-

"

"

^

)

'

-

Corp.; Dillon, Read & Co.; Blyth & Co., Inc.; Hal(bonds); Wisconsin Co. (stock);
| Mellon Securities Corp. Offering—Company will offer

Offerings—Of

the

will

act

as

agents.

Price

common stockholders the
right to subscribe
of new serial preferred not subscribed for or

to

>

public,. $11 per share.
Proceeds—To purchase additional
equipment; to acquire

&

on

share-for-share

a

,

•

■'

■

the-public, 50,000

being sold by the

are

company

and

Vair Norman
Cd.r

j

Springfield, Mass.

fer and to the sale to underwriters of all shares of

,

(6/25)

Common stock

'

■

promissory notes in the principal amount of $150,000
ameridmeht.
the balance as working capital.
Business—Manu¬
the reimbursement of its funds incurred in
the recent
facture of gasoline-powered fork-lift trucks. - ?- J
v
acquisition of stock of Morse Twist Drill and Machine
-A<: AAA :
^A;.:AAA AA: A A-:AAAA A7
AA A; Av
Co.-

The balance will be used* tov jreduce

a;

:

bank loan.

■

amendment.

Pierce,

dissolution of. North West Utilities

War

the

Assets

Administration

of

a

properties, purchase of machinery*
For details see issue of May 30.

amendment.

[details

see

'X

;

...

'V

v.'

stockshares
[for sh^reg of new^ convertible preferred: stock at rutej of
(four shares of prior preferred for one share of con-

New York.

'■

AA

l*

O

AA

•

A 1

■

A i

see

of

a

Not underwritten.

a

A

building

new

,

and

■

Western Frozen Foods
Co.,

June

6

(letter* of notification)

100,000

Whel doily

:

purchase

Publishers

filed

165,656

Ipnderwriters—A.

May

17

|jvil('

shares

be offered to -public.

3eeds

—

($1:

par)

common

stock.

Offering—Stock'

Price by amendment.

Fro-

$3,5C0,0C0 will be used to redeem its 100,000

Shares of outstanding cumulative preference stock at
$35

li

share.

I'unds.

Balance

will

be

added
V-'/




to

general

corporate
;

•.

and

$1,600,000.

equipping

at

It is estimated

rooms.

Business—Company

.

operate

0

rale

;VA'

:

155445 shares

preferred

on

funds.
AAaA'

-;

,

of

cumulative

of

on

June

12

preferred at rate of

($1 par).

amendment.

Under¬

mon

rights to subscribe for the series A
one

share for each 16 shares of

held at $100 per share.

not exercise their

the series A

••

f"

1.

.

;,v<

*

\ '

A

■'-, "

•

Mines, Ltd., Tor., Ont.
stock (par $1).

common

com¬

Certain stockholders will

rights with respect to 46,773 shares of

preferred, which together with shares not

-1* -A

vi:,; ;■ ' v

(Pa.)

V

v-

share, United States

per

issue of Feb. 21.

see

A'-A ■•***'"

"

"

''"*••••

•'*

••••"■

County Gas Co.

May 8 filed $1,700,000 first mortgage bonds, due
-

::

Probable bidders?

include

Interest

Halsey,

Stuart &

Co.,

Inc.

issue of May 9.

A-A AAA:!'!'!

A:*":'u;'

;|ifYoung

by amendment.

also registered 40,000 shares of
exercise of warrants.
&

Co.

Offering—Price to

share prior to Feb.
on

by

n

w-

,

•..7.

j:

'

common

common

public $8.25
common

1, 1951, 20,000

at

10

upon

cents

postponed indefinitely,

per

on

page

O!

issue to stock-'

are

being sold to

warrant share.

For detail«

(Continued

share.

per

stock at $8.25 per

were

recapitalization and 20,000

underwriters

stock (par $1);

for issuance

Underwriters—Van Alstyne, Noel

40,000 warrants to purchase
holders

rate

Proceeds

Radiator Co.r Racine, Wis*

Jam 29 filed 100,000 shares of

|

1976.

Will be sold at competitive bidding.

J amendment. Offering—Price
A—Refunding A For details see

before Dec.

stock

common

by

or

preferred

For details

York

manu-g

of power-gen-:

writers—Kuhn, Loeb & Co., and E. H. Rollins & Sons,
Inc..
Offering—Company is offering to stockholders
of record

'

'
' '•'/ A '

Underwriters—J. J^ CUrricfk,. Ltd., Toronto, Canada. Of¬

of' accessory and facilitating equipment,

31, 1953), and 310,290 shares

proposes

modern hotel in Kansas

,-v:

*",'»• 'A'"'*3vA'. 'vfJvy?' "•

Yank Yellowknife Gold

a

a

.

y-ffi

■'

filed

Dividend

C. Allyn & Co., Inc.

be

plant and; eqifip- I Feb. 13 filed 600,000 shares of

Willys-Overland Motors, Inc., Toledo (6/27-28)

Offering-

|A V III- (6/17) -

cost will

City, Kans.

Inc., New York (6/17)

etc^ Not', underwritten..

(Inc.), ioliet,

Cityj

loan, will be used for purchasing

a

constructing,, furnishing

incorporated in Kansas June 1, 1946, and

Un¬

Offering—Price,, $IQ

stock, series A (no par), convertible

May 22

was

shares of 5%

share A Proceeds for* purpose of
prosecuting and

Corp., Denton, Texasr

and

and

the total
i:

er of notification) 300,000 shares of
($1 par)
6% cumulative preferred stock. Price to
public, $1 per

market.- Proceeds—For investment.,

Printers

site

modern hotel of not less than 230

VVJ

May 14 filed, $1,000,000 inves ment trust fund certificates;,

United

a

June 10 (let

derating units,

Kt

ceeds, together with

fering—Price to public 25 cents

Offering—

;

diA

campaign

a

Offering—The securities will be offered to the

to own, construct and

preferred! stock.

facturing, development, sale afld service

multiples of $10;

The securities

public in units consisting of one; $200 debenture and
two shares of common at $210 a unit.
Proceeds—Pro¬

Inc^

■^shate.; ;P^oceeds^ADebt
paymer^

•

.

units of $10 and up, in

stock (nd

common

underwriting.

will be offered to: the; public through
Kans.

.

^ment and working capital.

to

Underwriters—No

rected by the Chamber of Commerce of Kansas

issue of May 30.
'V

cumulative convertible ($10- par)

unit... Proceeds will be used

equipment.

Unitecf lnvestors

n

/

Proceeds—Re¬

:

derwriter—First California Co;

•

Kan*

'

are' teserved for exchange for

mortgage bonds.;

construction

'

For details

Kansas City,

-

notification) $245,000 5%• debenture

$1,000- and $500.

[warehouse

issue of Aug. 2,1945<
,-vv-:
A. A AM;i-'/

sold at this time.

or

funding, general funds.

issuef of May 19.

|bonx&, Of which; $.75,000'
trice,

see

/-A:/: •--/'/

Offering—Shares will;
to present common stock¬
a share, in the ratio of one additional
share held.
Unsubscribed shares will

not to be reoffeerd

.

s

Ipresent

For details

Wyandotte Hotel Co.,lnc.,

par).

offered for subscription

holders at $20
share for each

•

United Groceri'Co»r Brooklyn^ N. Y«

the

upon

working capital..

tures, due 1976, and 10,000 shares

Underwriters—No Underwriters.;
be

offer will bU
sold to underwriterls and offered to public at $100 per.

IJune^ 10':ter bf

them

Co.

June 10 filed $1,000,000 of 30-year A4 % income deben¬

cents

Wayne Kniiting Mills, Fort Wayne, Ind.
May 24 filed 150,000 shares ($5 par) common stock.

[preferred hot issued under the exchange
see

•

•

Offering—Offering price to public 28
AA

rertible preferred with U/cash adjustm^rit^;

Ishare.: For details

to

IS3#
Co.yt:

United States funds*

r
' United Cigar-Whelan Sfores
Corp., N. Y.
I May 14 filed 50,000 shares of convertible preferred stock:
(Cumulative dividend, $3.50 per annum (par $100). Under-

[wrlters—Allen & Co. Offering—Prior preferred
[holders will be given privilege of exchanging such

distributed

be

estate and to provide

June 24 filed 220,000 shares of
capital stock (par $1—
Canadian )♦
Underwriters—Willis E. Burnside &

For

% '■.'

will

.

Virginia Red Lake Mines, Ltd.

.

.V-

'■

which

issue of May 30*

Price, $3.75 per share. Purpose—Working capi¬
Business—Production of television; radio' and pho¬
nograph equipment,/etc.

Offering—Price by
Proceeds-r-Acquisi.iori, construction, and;

issue of May 23.

common

For

York.

stock purchase plan.

facilities.

selling stockholders.

tal:

by the corporation to certain officers and employees of
corporation and subsidiaries pursuant to the terms and

| equipment of manufacturing and other

the

I
A;
■'
/
•
V;. A
Wisconsin Supply Corp., Madison, Wis. 1
y^
Viewtone Television & Radio Corp., N,:Yi
(6/17) '% June 5 (letter of notification) 1,100 shares of 5% cumuJune 10 (letter of notification) 79,000 shares of common' 1 lative preferred stock (par $100).. Offering price,
$100
stock (par $I)i
No underwriting.
Underwriter^Eric & Drevers, New 2 a share.
To acquire additional real

other

a

see

by

•

Union Carbide & Carbon Co., New York
May 17 filed 463,889 shares of capital stock (no par).
Underwriters—None. Offering—Shares are
being offered

provision of

stock owned

Lynch,

stockholders of North West Utilities Co., parent
Wisconsin, who elect to sell such shares of Wisconsin

ferred

(6/18)

Merrill

erence:

are

pre¬

Co., Kent, Ohio

Co^and Laurence M. Marks Sc Co.
Offering—Stock will
be offered :o public.
Price by amendment.
Proceeds-

equipment, etc.

include

of

May 24 filed 85,715 shares ($35 par) $f.50 cumulative ^^details
convertible preferred stock.
Underwriters—^Reynolds &

from

bidders

to be issued to the several underwriters
upon
conversion of company's 5% cumulative convertible

shares

hangar and

Probable

Fenner

& Beane; White, Weld & Co.; Glore,
Forgan & Co., and Harriman Ripley & Co. (jointly);
The Wisconsin Co;, and Dillon, Read & Co* ProceedsPart of the shares are to be sold by Middle West
Corp.y
top holding company of the System, and part by pref^

'

-

Purchase

-

^

May 21 filed 550,000 shares ($10 par) common stock tot'
be- sold; at. competitive' bidding.
Underwriters—By

-

Traders Post, Inc.,
Greenville, Miss.
May 31 (letter of notification) ;.2/)00: shares.of 5% .pre?0'.;
Verney Corp., B^stdny ~Mass»
ferred stock and 9,000 shares of common
(no. par).! Of¬
May 29 fired 150,000 shares of common stock (par $2 50).
fering price, $50. a share of preferred and $1 a share .of
p
Underwriters-^-Names by ameiidment.
common.
Offermg—Price
Underwriter—Stock will be offered by Henry
by amendment' Of shares being, offered an unspecified
T. Grogby & Co.,.
Greenville,, Miss* For paying, off real* amount is
owned by selling stockholders and
estato,indebtedness.
remaining;

Twin Coach

new

V serial preferred stock not subscribed for or
required to
(par.' $2.50J.. I effect
exchange. Proceeds—Refunding.
Jackson & Curtis, Boston;
AAAAA ■ A
^
7! A7!vAA-:'';:• A'A"
public. 7 Price by
Proceeds—Net proceeds will-be applied, to
i .Wisconsin Power & Light
Co., Madison, Wis*

May 3i~filed 120,000 shares

and

[for

basis, for shares of its old serial

.

Of the shares to be' sold

tain

[•

shares

Concrete, Inc., by retiring remaining A The subscription offer to common stockholders will be
outstanding stock and liquidation of its liabilities; to & at the rate* of
l/10th of a share of new serial preferred
expand and develop patents, and for working
capital!
| for each share of common held; The right of subscrip—
A
i tion is subject to the consummation of the exchange ofy."
v
:; v
:■
yij ' M

125,000 shares by four stockholders. Proceeds—Net pro¬
ceeds to the
company will be used as follows: i $250,000

i

for

exchamged,

preferred stock, 4%% series.

assets of Vacuum

r

shares

certain officers and directors.

to

sey, Stuart & Co., Inc.

Mdy 28 (letter of notification) 25,000 shares of common
(par $1),
Underwriter—Eastman, Dillon & Co.

(par; $i).
Co.,« and Hayden, Miller & Co.
being offered, 175,000 shares
will be sold to ihe
public by underwriters and; 15,000
will be sold by the company to its
employees, including

Underwriters—Shields

Boston

stock

stock

common

Winged Cargo, Inc., Philadelphia

Wisconsin Electric Power Co., Milwaukee, Wis*,
May 22 filed $50,000,000 first mortgage bonds, due 1976,
and 260,000 shares
($100 par) cumulative preferred stock.
Bonds and preferred stock will be sold
through com¬
petitive bidding.
Probable bidders .include Ths First

■)ConcreteCorp., Philadelphia

(6/26)

general

equipment necessary

!

t'1"

•

the

to

.

rV
« '

added

for expansion of
carrying cargo and freight by air.

loansA
y

be

:A''

June 5 (letter of notification)
150,000 shares of 5% noncumulative preferred stock (par
$1). Not underwritten.
Stock will be sold
among not more than 25 people.
V Proceeds for
purchase of additional

ing plants.

Offering price, $27.50 a share. No underwriting.^ For
working capital and possibly to the reduction of, serial

\A

Hoffman Machinery Corp., New

(par $100). - Underwriter—Hayden, Stone & Co. Offer¬
ing—The stock will be offered
publicly. Price by amend¬
ment.
Proceeds—Approximately $750,000 will be used
for capital
expenditures, including $175,000 to pay for
a recently
acquired plant at Syracuse, N. Y.; $575,000
for purchase of additional equipment and the remainder
for general funds.
Business—Sale of garment presses,
dry cleaning equipment, laundry
machinery and equip¬
ment, air appliance products, filters and stills for
dry
cleaning solvents and finishing accessories for
dry clean¬

r

>

States

June 5 filed 30,000 shares of cumulative
preferred stock

•

9,700 shares of $25

by other stock holders will be sold to

Company is also offering rights to stock¬
holders of record June 12 to subscribe for
310,290 shares
of common stock at rate of one new
share for each

York (6/24)

(par $10).
stockholders.
Underwriters—The
Offerings-Price by- amendment. •

••.AA'A-.A■" A "A\, VAA'A.''"AAAAAVA
Torrington Manufacturing Co., Torrington, Conn.

United

;

June 4 filed 90,000 shares of common stock

Stock being sold by
First Boston Corp.

issue of

see

for

a

\AI.A§||A\ s

l

subscribed

underwriters.

(par $2.50).
Underwriters—Dillon, Head & Co.,
Inc.
Offering—Stock will be offered to the public;
Price by amendment.
Proceeds—Acquisition of retail
drug stores or companies manufacturing merchandise

purposes.

greater part of the net^proused to advance funds to its subsidiary,
Grace & Seventh
Corp., Richmond, for construction of
an
addition to parent company's present department
store building.
Company may also use part of proceeds
to pay off a
$675,000 bank loan.
Business—Operation ]
of department store,
:.aA
1
a

ceeds will be

(6/17)

1,000,000 shares of capital

°

(par $100). Underwriter—Kidder, Peabody & Cos Of¬
fering—Shares will be offered to the public. - Pricje by

3255

Offering

issue of Feb:

3256)

.

7.
j.

.

•

'

i't

si.';,''

>•V-1

V

'.,y\

Thursday, June 13, 1946

FINANCIAL CHRONICLE

THE COMMERCIAL &

3256
;$

uV/Wc-H?;.

'

REGISTRATION) /-5

(NOT YET IN

,

PREVIOUS ISSUE

INDICATES ADDITIONS SINCE

The bidder must

cates.

specify the dividend rate which
some multiple of Ys of 1%.
Bids will be re- ;
June 26 for the purchase
ceived at office of H, F. Lohmeyer, 3400 Terminal
'Air Services, Inc., New York
,
.
of $4,060,000 of equipment trust certificates maturing in
Tower, Cleveland.
Probable bidders include Halsey,'
one to ten years.
The issue will cover approximately i
"April 1 company was reported planning sale of 150,000
v Stuart
& Co., Inc.; Salomon Bros. & Hutzler; Harris,
shares of common stock through B. G. Cantor & Co., f 80% of the cost of 900 steel box cars and 900 Evans -y Hall & Co. (Inc.), and
probably some trust companies.
New York, as underwriter.
Price about $2 per share. ly loading devicesvV®
Company's headquarters will- be located within eight
Chicago Milwaukee St. Paul & Pacific RR.,
Bangor & Aroostook RR., Bangor, Me. ;
miles of New York City. " Principal business will be
Chicago
Student training and charter service.' l'. April 16 stockholders authorized new mortgage.
Com¬
Company is inviting bids for the lowcafcinterest rate at
pany contemplates refinancing one-third of outstanding
which bidders will provide either or bdm of the follow¬
£
American Bemberg Corp., New York
funded debt (Dec. 31, 1945, $12,665,000) through sale of
ing (probably under conditional sale agreement):
(1)
June 25 stockholders Will vole on proposal that present
equal amount of bonds under new mortgage, through , Not to exceed
$1,713,750, from time to time on or before
7% preferred stock be exchanged for new 4%% issue.
competitive bidding.
Probable bidders include HarriMay 1, 1947, for financing the acquisition of 18 new 1500
Alternative plan would tv- n-e refunding of the issue
man, Ripley
& Co., Inc.; Lee Higginson Corp., and
horsepower Diesel-electric road and switching locomo¬
Halsey, Stuart & Co. Inc.
through sale of other securities.
,

t'.l

Baltimore & Ohio RR.

% •

(Continued from page 3255)

■

must be

Company has invited bids on

!

,

„

„,

American Bosch Corp.

April 16 reported that Alien Property; Custodian may
shortly ask for bids on 535,000 shares (77.24%) of the
stock of the corporation.'
Probable bidders " include

stockholders approved plans to retire 21,799
preferred stock through exchange for new

shares of 6%

4% preferred.

^

'

Forgan & Co. and Lehman Brothers (jointly),
Co., Inc., and Merrill Lynch, Pierce, Fenner

Glore,

11

June

1

I

1 f

''

'

Beam

s

'

••

'

'

/

.

!

I

'

'

v
C

•
f

'

>:
V*

'

(

.

.

1

i"

I

'1f' * *

•»

'

'<•'

V*

r

K

•

& Beane

June 30 reported company planning some new financing
with F. S. Yantis & Co., Chicago as probable underwriter.

(jpintly).
Co., New York

for permis¬
of stock to
Estimated net proceeds ($14,000,000) would

May 23 company filed with FCC application
sion to offer a new issue of 1,000,000 shares
the public;
be devoted to financing present

Bessemer Limestone &

Chicago Milwaukee St. Paul & Pacific RR.
mortgage bonds, proceeds from the sale of which
used to redeem first mortgage 4% bonds,

1994,
postponed until late this year. Earlier
plans were for the retirement of the bonds July 1.
Three investment banking groups were set up to enter
competition for any new offering, viz.: Kuhn, Loeb &
Co. j Mellon Securities Corp., and Halsey, Stuart & Co.,

be

Cement Co.

is expected to be

shares of new 4% cumulative preferred stock (par $50). Directors plan to call
the present outstanding 23,141 shares of 6% preferred,
giving holders thereof the right to exchange their shares
for new 4% preferred share for share.

and proposed facilities

The public offering of stock, if approved,
will be made through Dillon, Read & Co. Inc., with
of company.

;whom arrangements have been made by the ABC pro¬
viding for, the purchase from it of the entire proposed ;#y Bibb Manufacturing Co., Macon, Ga.
issue of 1,000,000 shares at $14 a share. Sale of the stock
June
1
stockholders voted to change capital
stock
to the public by Dillon, Read & Co., will be at $15 a
from 200,000 shares (par $100) to 800,000 shares (par
share.
,
'
$25) four new shares to be exchanged for each old share;
•:Y
V
v';V" ;v
Ay';: '
-'V
an additional 200.000 shares
(par $25) will be created
American Gas & Power Co,
to be held for future needs of the company.
April 10 company (name to be changed to Minneapolis
•Gas Co.), under modified plan approved by SEC, reserves
Bridgeport (Conn.) Brass Co.
right to make public offering of not in excess of 874,078
April 23 stockholders voted to issue an additional 450,000
shares of new common stock.
Probable bidders include
shares of common stock when and if new capital is
White, Weld & Co., W> C. Langley & Co., Otis & Co.
needed.
Probable underwriters, Hincks Bro. & Co.;
Stone & Webster Securities Corp.; Hornblower & Weeks.
>*:U■{, American Yarn & Processing Co., Mt. Holly, N.C.
It is expected that an issue of $1,500,000 preferred stock,
Brown-Forman Distillers Corp.r Louisville^ Ky»
of an authorized issue of $4,000,000 approved by stockJuly 23 stockholders will vote on a plan which calls for
Rojders March 14, last, will be filed with the SEC at
increase in common stock from 300,000 shares to 600,000
an
early,;' datef Probable underwritersf will include
(par $1), after which a 100% stock dividend will be de¬
,11. S, Dickson & Co. and Kidder, Peabody & Co.
clared.
Directors also seek approval of an' additional

Inc.

Co.

May 29 registration expected at an early, date of 58,000
shares of common stock. Public offering price $5 per,

,

.

1

.

Colling (H. T.)

,

,

,

lower-coupon first
would

Issuance by the road of $58,900,000
•

May 27 stockholders voted 25,000

>

6, 111.

ion Station Building, Chicago

>r' r V'

Distilling Co.

(James B.)

and Blyth &

American Broadcasting

tives; (2) Not to exceed $2,006,250, from time to time on
or before Jan. 1, 1947, for financing the acquisition of 5?
new 6,000 horsepower Diesel-electric passenger locomo*
tives. Bids must be received before noon (CDST) June
19 at office of H. A. Scandrett, President, Room 874 Un*

Co.'

Bangor Hydro-Electric

•

Underwriter—Westheimer & Co., Cincinnati.

share.

.

;

"

•

^Arkansas

y

issue of

Power & Light Co., Little Rock, Ark.
company

for-share basis.

zation by

before

stock

are

Kuhn, Loeb & Co., The First Boston Corp. and Harri-

Ripley & Co.

man
'

'

prospects of a recapitali¬

S

3

Y

"

"•

4

V

v

'

,

h

\

t

'

4

1

^

\

J ,

ff *

^

^

. I

u

July

stockholders

16

stock

will

vote

on

..

Atlantic Refining

Co., Philadelphia

of the plan, it was said, is to place the company
in a position to fund bank loans, add to working capital
and to provide funds for capital expenditures. Probable

purpose

Smith, Barney & Co.

Atlas Imperial Diesel Engine Co., Oakdale, Calif.

,

April
2 for

19

1

stockholders

and

to split .common stock
preferred isue of 300,000 (par

voted

new

of which 150.000 shares would be issued and sold

$10)

finance

to

create

purchase

of

constituent

f

are

&

improve¬
ments, etc. Blyth & Co., Inc., probable underwriters.
company,

,l

,

/■

.* ;:'.1

i*

,

t

P. U. Commission appli¬
competitive bidding 876,568 common

shares, after capital adjustment. Proceeds for extensions.
bidders include Morgan Stanley & Co.; Leh¬

(jointly).

curites Corp.

June

20

stock.

South West Utilities Co.,
Public Service Co. approved by the SEC

which will be offered
basis for 7% preferred
not exchanged will be
$105, Each share of new stock

July 1 at

will be convertible into two

of Central &

Southwest

mon.

Corp., the new company, would be sold at competitive
bidding to provide funds, not otherwise supplied, to
retire
outstanding preferred stocks of Central
and
American.
Possible bidders:
Glore, Forgan & Co.;
Lehman Brothers-Lazard Freres & Co. (jointly); Smith,
Barney & Co.-Harriman, Ripley & Co.
& Co., Inc.; Stone & Webster Securities
Boston Corp. (jointly).
:•
Century Manufacturing &

r;

and a half shares of com¬

,

„

•

19

committee

underwrite
of Century
,,

June 18
•

certifi-

Eastern

Massachusetts Street Ry.

plan

A» through issuance of
debentures.
Debentures are to

Corporate Securities
v'-;;

,y>

•''

...

.

•'

Blair

Co.

<

BUFFALO

PHILADELPHIA




Underwriters and Distributors
Our Sixteen
Serve

NEW YORK

BOSTON

•

^

INC.
ff

CHICAGO

PITTSBURGH

stockholders in ratio
F. S. Moseley

of $120 par

& Co. will be

$3,658,800 4Y2% income
be offered to preferred
for each preferred share.

underwriters.

INCORPORATED

l/V-.*1

*;v.\

Company

*

will vote on approving recapitali¬
eliminating 30,498 $6 first preferred stock,

July 8 stockholders
zation

First California

Inc.

increasing authorized
common from 500,000 shares (par $5) to 1,500,000 shares
(par $1.66%) to effect a 3-for-l split. Stockholders will
also vote on increasing authorized $1.60% par share'to
3,000,000 shares. Additional shares would be held sub¬
ject to issuance from time to time by directors.

Chesapeake & Ohio Ry., Cleveland

State, Municipal and

J' >,

,

will vote on

series

;

■'

of

Durez Plastics & Chemicals,

June 19 stockholders

;

.United States Government,

'

,

Detroit, Mich.
directors formed to consider
refinancing of $65,000,000 3%s and 4s. Probable bidders,
include: Mellon Securities Corp., First Boston Corp.,
Dillon, Read & Co. Inc., Coffin & Burr, Halsey, Stuart
& Co., Inc., and Spencer Trask & Co.
March

Instrument Co.

Company will receive bids up to 12 noon (EST)
for the purchase of $1,500,000 equipment trust

on

Detroit Edison Co.,

(jointly); Blyth
Corp. and First

May 29 reported Estes, Snyder & Co., may
offering of common stock following merger
and Continental Geophysical Service Co.,

v

create a new issue

on a share-for-share
All the 7% stock which is

redeemed

number of shares

.

convertible preferred stock

and American

sufficient

;

.

Machine Co.r Chicago ^

stockholders will vote to

,/in exchange

Southwest Corp.

;

Continental Foundry &

bank

Co., and Mellon Se-

Brothers; Harriman, Ripley &

man

outstanding

**

at

Pursuant to plan of Central &
a

Jackson, Mich.

Probable

of 5%

J ■**

sell

to

cation

working capital.
~

Co.; Halsey, Stuart

Blyth & Co., Inc.

March 14 filed with Michigan

will be issued,
175,000 shares ($1

used to repay a $3,000,000

to be

'

Central

May 7 stockholders approved proposal to increase the
company's indebtedness from time to time by additional
amounts not in excess of $50,000,000 in aggregate. The

underwriters include

sales

increasing common

300,000

by competitive bidding or
bidders include Morgan Stanley &

Proceeds of the preferred and common

loan and to augment
*

shares, the new stock to be offered
stockholders at $10 per share.
Proceeds for expansion
and working capital.
Management does not anticipate
entering in.o any underwriting arrangement.
*
by

stock

v%

Artloom Corp., Philadelphia

bonds, the
outstanding
determined
other negotiations. Probable

shares of the5 latter stock

797,600 shares.

.

and sale of

$290,000,000 first and refunding mortgage
proceeds to be used to refund $304,240,000
long-term debt. Interest rate or rates to be

-

-

par) common stock of which there are now

Public Service Com¬

approval of issuance

petition for

Consumers Power Co.,

Company plans to issue an additional

before the end of 1946, maybe even
of Summer. Traditional underwriters

funds for property ex-

Consolidated Edison Co. of New York, Inc.

mission

replacement of the author¬
shares ($50 par) $2.25 preferred
with an equal number of new no-par $2 preferred
wi;h a stated value of $50.
Initially it is planned

that' 35,000

company

the end

•

ized but unissued 50,000

stock

provide

and

June 12 filed with the New York

June 11 stockholders voted

-

June 3 reported that there are

securities

senior

pansion.
Probable bidders include: Glore, Forgan; &
Co.; W. E. Hutton & Co., and Halsey, Stuart & Co., Inc.

:

Central Electric & Gas Co.

•

stated that in final step in

was

& Co., Inc.;

-

Armour A Co., Chicago

_

^

York

recapitaliza¬
tion program, corporation is expected to sell approxi¬
mately $100,000,000 debentures to pay off balance of

which
share-

14,750 shares of 4% preferred stock for
be exchanged, on a

the present $5 preferred can

planned to issue 290,000
Shares common stock
(par $12.50) and $5,000,000 in
promissory notes, for purpose of paying current promis¬
sory notes and
finance expansion program.
Probable
^bidders include Dillon, Read & Co. Inc.; The First Bos¬
ton Corp., and Blyth & Co.,. Inc. "

jMarch 30 reported:

Columbia Gas & Electric Corp., New

April 12 it

CLEVELAND
ST. LOUIS

Offices

California and Nevada

Head Office: San Francisco

Electric Auto-Lite

June 12 it was

Co.

reported that company

plans to offer in

shareholders rights to purchase 298,971 addi¬
tional shares of common stock in the ratio of one share
for each four held. The financing, for the purpose of
retiring company's V-Loan and current bank loans, also
•will provide, in part, for company's postwar expansion
program and will replenish working capital already used
for such purposes. Company is negotiating with a group
of underwriters headed by Lehman Bro.hers and Smith,
July to

Barney & Co.

r

\

t,

3257
•

Electric Boat'Co.

•

Huyler's, New York City

i-'V-i-

June

11; at annual meeting, stockholders voted plan
creating new preferred issue of 200,000 shares, of which
173,931 shares will be issued to common stockholders
as
stock dividend.
The authorized balance of 26,069

H

(total 141,530) at not less than $10
would be used to redeem

;j: working capital.

'
-

Hall

the sale of the 100,000 shares plus 41,530 now unissued

*

Shares will be available for general corporate purposes.

bidding.
Probable bidders include Blyth & Co., Inc.;
Kidder, Peabody & Co.; The First Boston Corp.; Harris,
& Co.: (Inc.);
Merrill Lynch, Pierce, Fenner- &
Beane, and Ira Haupt & Co.
7

May 27 stockholders approved an increase in authorized
common from 600,000 to
700,000 shares and appproved'

V

per

share.

,

Proceeds

loan, preferred stock and for

Michigan-Wisconsin Pipe Line Co.

;

May 3 it

Empire District Electric Co., Jo pi in, Mo.

May 3

company

Illinois Central RR.

filed application with the Arkansas P. S.

Commission for authority to issue $2,000,000 2% % first

7

'

reported that Michigan Consolidated Gas
Co., through the purchase of $17,000,000 in
common
stock, would acquire full control of the Michigan-Wis¬
consin Pipe Line Co.
Sale of the stock to Michigan

'?,/1-'.'-s-rr:
f

May 3 it was announced that in connection with pro¬
posed bond refunding plan company proposes to sell
$35,000,000 first and refunding mortgage bonds Series B.;

was

Consolidated

would

be

Proceeds would be used to retire
outstanding refunding
mortgage bonds to be called for payment Nov. 1 at 107%.
Probable bidders: Kuhn, Loeb & Co. and

& Co,

Inc.; Shields & Co. and Lehman Brothers.

a
part of the initial financing
which proposes to build a $71,f
000,000 pipe line to bring natural gas from Texas td
Midwest
States.
Michigan-Wisconsin's proposal alsd
contemplates issuance of $6,000,000 in 2% 5-year serial

& Co. Inc.

mortgage bonds due in 1976. Proceeds would be used for
additions and improvements to the company's properties
in Missouri, Arkansas, Kansas and Oklahoma. Probable
bidders include The First Boston Corp.; Halsey, Stuart

notes and of

Halsey, Stuart

I'v?] Fairchild Engine & Airplane Corp.

V-A\cc»

•

tl :} $

>

,

v"

i \ \>x

1

;<t

• '<-•

.

,

V\;•>,. V*" J$

\

-

^ \/,

.

basis of two

and such additional
pay

include Dillon, Read & Co. Inc.; Glore, Forgan
Co.; White, Weld & Co.; Halsey, Stuart & Co. Inc.,
and Mellon Securities Corp. >
"

Milwaukee Gas Light Co.

May 6 it was reported company is considering refund¬
ing its $13,000,000 4j/2% bonds due 1967 and the refund¬
ing or retiring of the $2,000,000 outstanding 7% preferred

Company proposes
preferred (par $50)
shares to provide cash to
•

stock.

Probable

Prob-

underwriters

"

reported that company to meet financing
expenditures in 1947 may find it necessary to issue addi¬
stock if market conditions warrant it.

May 29 reported
shares of

000

filed at

an

•

*

Public offering price about $5
>

General Telephone Corp., New York

■

April 17 stockholders approved amendment to certifi¬
cate of incorporation modifying restrictions against in¬
curring debt for capital purposes without specific stock¬
holders' approval.
ment to authorize

Probable

bidders

Stockholders also approved amend-;;
175,000 additional preferred shares.;
include

Paine,

Webber,

::

Jackson

&

'

-■

Goldring Merchandising Co.
May 28 reported prospective financing being discussed
with Merrill Lynch, Pierce, Fenher & Beane, as imderr;

&

(Del.)

bidders

if

securities

are

stock, but it is likely that no action will be taken

before September.: The management, it is

said, is now
making an exhaustive budget study to determine what
additional capital will be needed to finance an expansion;
program.

was

Home, Inc., Rockford, III.

(par $1)

was

expected.

Com¬

pany, it is stated, will also sell
derwriters at 10 per warrant.

150,000 warrants to un¬
Price of stock to public
is expected to be $3.50 per share.
Underwriters, it is
understood, will be H. H. Johnson & Co., New York,
land Shillinglaw, Bolger & Co., Chicago.
Gulf States Utilities Co.
Public Service

eers

of

Co. part one of the plan calls for
stocks of two subsidiaries,

common

Gulf States Utilities Co. and El Paso Electric Co., and for
their
The

distribution
Gulf

States

to Engineers
Utilities stock

through issuance of rights.

common

would

stockholders.
distributed

be

1

-

Hoving Corp., New York
May 28 Walter Hoving, former President of Lord & Tay¬
lor, announced incorporation under laws of Delaware of
Hoving Corp. with an authorized capitalization of 2,000,000 shares ($1 par) common. New York office of the

corporation is at 10 Rockefeller Plaza. The shares, it is
understood, will be offered to the public at a date to be
announced later. Blyth & Co., Inc. are associated with
Mr. Hoving in his plans. The corporation will acquire
ownership of and operate well known department and
specialty store companies in various parts of the United
States. These companies will be operated under their
own name.

,,

;•

May 29 stated filing by letter of notification expected
next week of 74,000 shares of common stock to be sold
in behalf of the company. Proceeds—For expansion, etc.
First Colony

reported that

new

financing by

sold

in¬

Corp will be underwriter. Public offering

price expected at $4 per share.




,

J.;

May 23 it was reported that company may refund its
outstanding $4,300,000, 5% debentures due 1959 later this
year

with

lower-cost

new

securities.

writers Van Alstyne, Noel & Co.

England

New

,

/

Probable
,

.

.

under¬
^

<v,

'v

Gas & Electric Association, Cam^

^JUdder^rPeabody.;^ ;Cq.,^( Joint),

company

It is

ri'i

j'y:*yr ^'

uni

havp- already; been
•'
'
;,
''

,

,

:

Started

*\'V.yv

r

,

'». *

,<i

*.

<

New York Dock Co., N* Y.;,

^

'

'

i

/. '

bf?

May 28 reported negotiations will be resumed probably
in June with view for refunding of
$10,000,000 first
Kurman Electronic Corp.
^mortgage 4s, due 1951. New issue will probably run 25
years. Probable underwriters, Hayden, Stone & Co., and
Company, manufacturer of various electrical relays and
clocks, is reported planning the sale of 90,000 shares of | Halsey, Stuart & Co., Inc.
common stock through B. G. Cantor & Co.
An addi¬
Northern Indiana Public Service Co. ;
A
tional 7,500 shares would be sold for account of N. S.
April 17 reported that company has under consideration
Kurman, President. Price $3 per share.
-..v.:
the refunding of its $45,000,000 series C SVss with issue
■

,

.

■;

v.:

.

Macfadden

May; 20 it

Publications,

.

■:

Inc.,

New York

of about

same size carrying lower coupon rate.
Probable
bidders, Halsey, Stuart & Co. Inc., and Harriman, Ripley

-

reported that company had under con¬
sideration plans to refund the outstanding
.6% deben¬
tures and the $1.50 participating preference stock.
was

.

Northern Pacific Ry., St. Paul, Minn.
It

Markt & Hammacher Co., New York

and

bond

interests

in

this

was

4%% bonds due 1975 and the

at 12

individually and

Sale will

be

on

by public

the six lots

auction

to

as

be

.

May 28 it was reported that early sale by Cities Service
Light Co. of its common stock holdings of Ohio
Public Service Co. was probable following the virtual
completion of the refunding program of this subsidiary.
This is one of the few remaining steps prior to com¬
plete divorcement of the Cities Service Co. from the
utility field in compliance with the Public Utility Hold7 ing Company Act.■
i
Power &

an

held

•

sold for the account of certain stockholders.

Corp., is to be underwriter.

offered at

$7.50

per

First Col¬

Stock expected to be

share.

Michigan Gas & Electric Co., Three Rivers,

(b) 14,000-

(par $100) and (c) $400,000

common

pre¬

stock

All issues would be sold through competitive

--/v

>

.

•

>-•

cordance

with

SEC

.*

Electric Co.,

contemplates at

same

time

Oklahoma City
Standard

common

stock

Gas

(in

<

&
ac¬

regulations)

to sell approximately
stock, proceeds of which
will be used to reimburse treasury and retire bank loan
used in redeeming the 7% preferred stock.
Probable
bidders will include Merrill Lynch,
Pierce, Fenner &
Beane; The First Boston Corp., and White, Weld & Co.

140,000 shares of

Pacific

first mortgage bonds due April 1, 1976,

(par $10).

T 7-T.

;;Electric Co. sells its holding of

Mich.

April 1 filed with SEC application to sell (a) $3,500,000
ferred shares

.

Oklahoma Gas &

Company

Metal Forming Corp.

ony

V;-'r'v---'.'
*

May 29 filing of letter of notification expected in two
weeks of 60,000 shares of common stock (par $1) to be

•

0

noon

;

series,

Ohio Public Service Co.

(EDT), June 21, 1946, at the Office of Alien
Property Custodian, 120 Broadway, New York 5, New
York.

new

| Peabody & Co..:>.;^%.;<>a;

(21.99%) of the first pre¬
stock, 1,588 shares (34.90%) of the second pre¬
ferred stock, 1,046 shares (29.90%) of the class A com¬
mon stock, 2,000 shares
(38.10%) of the class B common
stock, $39,900 (14.60%) of 6% serial bonds and $93,100
(14.90%) of 6% income bonds.
Bids will be received
six lots

a

trust bonds.
Prospective bidders, Morgan
Stanley & Co., Halsey, Stuart & Co. Inc., and Kidder,

offered include 2,164 shares

the

issuance of

of collateral

company,

ferred

entirety.

reported April 10 that company has under con¬
the refunding of $55,000,000 collateral trust,

sideration

engaged in
the export of hardware and farm implements with the
aid of foreign and domestic affiliates.
Securities being

on

1

& Co,

May 23, Alien Property Custodian James E. Markham
announced that he is offering at public sale
minority

•/..J

Hungerford Plastics Corp., Summit, N. J.
<

was

with underwriters,

stock

May 24 in connection with plan of dissolution of Engin¬
reclassification

„

National Container Corp.

Halsey, Stuart & Co., Inc. (bonds only); The First
Proceeds will be used to retire at par and interest outBoston Corp.; Blyth & Co., Inc.; Kidder Peabody & Co.;
Harris Hall & Co. (Inc.),
7 standing debentures. Bidders may include Halsey, Stuart
& Co., Inc. (for bonds only), Bear, Stearns & Co. (for
•
KLM Royal Dutch Airlines
stock only), First Boston Corp.,
White, Weld & Co.*

reported that early registration of 350,000

shares of common stock

,

May 15 it was intimated that company may have financ¬
ing plans in connection with steps being taken in aequiring additional lines. Probable underwriters include
Reynolds & Co.'
'
1
m %

fc March 27 filed amended recapitalization plan with SEC
providing for sale at competitive bidding of (a) $22,500,000 20-year sinking fund collateral trust bonds, plus
(b) sufficient shares of new common stock out of the
original issue of 2,300,000 shares to supply $11,500,000.

May: 31 reported company; probably. will replace out¬
standing bonds and preferred stock with new lower cost
Probable

if

Glore, Forgan & Co., and Shields

bridge, Mass.r

securities.

ex-

an

underwriters

com¬

Kansas Power & Light Co., Topeka, Kan.

derstood thatjconversations

Green's Ready Built

Probable

Co.y;§;;^

Halsey,,Stuart & Co. Inc. (bonds only); Dillon, Read &
Co. Inc. (stock only).

is contemplated within the next 30 to 60 days.

May 23 reported directors giving careful consideration
to a splitup of common shares and issuance of additional

May 15 it

business.

National City Lines, Inc., Chicago

through competitive bidding $20,000,000 new first mortgage bonds and such number of
3,000,000 common shares as may be necessary to enable
the company to carry out the provisions of the amended
plan. Probable bidders include the First Boston Corp.;

June 12 it

Grand Union Co.

new

of

stock is offered include

clude

:'•

volume

,

share.A^^^:;Vv:®^?C^

per

panded

pany proposes to sell

stock

(par $1). Expected to be
early date with Newkirk & Co., New York, as

principal underwriters.

Avery, Chairman, following the annual stock¬
meeting, indicated that rights may shortly ,be

holders'

offered to shareholders to raise funds to finance

May 21 pursuant to amended plan filed with SEC

registration statement covering 650,-

a

common

7 f

;

Sewell L.

Brothers; Blyth & xCo., Inc., and Halsey,

Interstate Power Co.

Foods Inc., Columbia, S. C.

(jointly); Halsey,

Dillon. Read & Co. Inc.

J Montgomery Ward & Co., Chicago

in¬

.

Fresh Dry

distribution of its stock

'

May 23 New York Stock Exchange received notice from
company that the proposed offering of 101,700 shares of
capital stock to holders of common stock of record
May 27 has been postponed. Offering of shares will be
at market but at not less than $5 per share.
•

was

forerunner to

Stuart & Co. Inc.; and

■

Florida Power Corp.

a

Forgan & Co. and Lehman Brothers

Insuranshares Certificates Inc.

holders.

as

by the American Light & Traction Co., parent, to enable
latter to meet Utility Holding Company Act require¬
ments. 7 Probable bidders include Otis &
Co., Glore,

-

Stuart & Co. Inc.

stock not subscribed for by stock¬

Refunding step would strengthen company's capi¬

tal structure

include Merrill Lynch, Pierce, - Fenner
Otis & Co., and the First Boston Corp.

clude Lehman

it will exercise its right to subscribe to the stock to
which it is entitled and has agreed to purchase at $40

common

common

lower-cost securities.

new

Fidelity & Guaranty Co. (parent) has announced that

Probable bidders of the

bonds

Indianapolis (Ind.) Power & Light Co.
April 24 it was reported that company probably will
replace its $32,000,000 first 3%s due May 1, 1970, with

-

$34,000,000 in 3y4% 20-year first mortgage
The plan has

&

redeem any pre¬

common to

dividend^ arrears certificates " ($11,596,680).

Beane;

company,

yet to be presented to the SEC.

$50) into common stock
one preferred.
Com¬

able bidders

•

new

shares for

ferred not tendered for conversion.
issuance of 200,000 shares of new

The hew stock will be offered for subscription
pro rata at $40 per share.
The U. S.

tional

common

purchase enough additional

to stockholders

June 4 it

.;;77rv,'7

pany states underwriting is available for this conver¬
sion program and will cover a
30-day commitment to

July 26 stockholders will vote on increasing authorized
capital stock from 100,000 shares to 200,000 shares (par

per share any new

Co., Decatur, III.

company filed plan with SEC to simplify capi¬
tal structure.
Plan contemplates the conversion of 5%
cumulative preferred stock (par

Fidelity & Guaranty Fire Corp., Baltimore

$10).

Power

April 11

on

the

bonds to complete the "initial financing."

Illinois

May 23 in connection with the corporation's call of its
preferred stock for redemption June 24 Smith, Barney &
Co.,-and associates are offering to purchase at $56 per
share (flat) all shares of $2.50 preferred stock tendered
to them. All such shares of preferred will be converted
into common stock. Arrangements have been made with
Smith, Barney & Co., and associates whereby the com¬
pany will .sell to them any common stock into which
unconverted preferred was convertible. Associated with
Smith, Barney & Co., are Eastman, Dillon & Co., Newhard, Cook & Co., Spencer Trask & Co., and McDonald
•>

of

new

common

Affiliates, Inc.,

San Francisco

May 31 stockholders of Pacific Coast Mortgage Co. voted
sale of Pacific

to

Blair

&

Affiliates, Inc., wholly owned subsidiary,

Co., Inc.

Involved in

(Continued

on

page

the acquisition was

3258)

■

THE COMMERCIAL

3258

&
FINANCIAL CHRONICLE

interests will be received until June 1, 1946, by the com¬

(Continued from page 3257)

Operations consist mainly of owning and managing
in se^eral/^tcs; ;;:iB^erested.
firms are invited to communicate witb the general
office,
N, Sixth St., Harrisburg, Pa.
pany.

in Pepsi-Cola

Pacific Affiliates' ownership of all stock

22

Bottling Co., of Los Angeles.
•

Pacific Lighting

Corp.

May 21 sale

Rauscher, Pjerce & Co., Houston.

and (b) 101,000 shares of series C cumulative preferred
stock, with a dividend rate not to' exceed 4%.
Both
issues are to be sold through competitive bidding. Prob¬

Mellon

include

Securities

Corp.,

be

Southern

invested

(par $3). Purpose is to secure permanent capital as
be required for future expansion. Smith, Barney

:

SEC

-

reported that corporation soon may be
Securities, and Exchange Commission to
file a reorganization plan to meet the simplification
standards of the Public Utility Holding Company Act.,
was

ordered by the

Radio-Keith-Orpheum Corp., New - York -

v

was reported that an early-filing with the
expected covering 1,000,000 shares of common
stock, now owned by Atlas Corp. Probable underwriter,

June

.Light

subsidiaries

and

A and B

ways common stock not taken in exchange .will he sold
after, July L .Proceeds will be distributed to the Light
Ac Power stockholders who have not tendered their: se¬
curities ib^xchangei-B-^/aa-;?^^-^;^^;^

new

I."']

Inc.

United States Lines Co.

of

Electric

Power

;

Wichita, Kan*.

reported company* is planning issuance of 99,000
:shares of common stock (par $1) to be offered at $3 per
.share, with Clayton Securities Co.; SiUs, Minton & Co.,
and Estes, Snyder & Co.,. as underwriters.

$10.50

10 it

Rochester (N. Y.) Telephone Corp.
May 29 expected early registration and competitive sale
in June of $6,238,000 35-year bonds now held by Halsey,
Stuart & Co. Inc. Bonds now carry a IVz % coupon but
it is probable that company will request that rate be
specified in the bids. Probable bidders include Halsey,.
Stuart & Co.; Inc.
.

April 19 the

(Mo.)

Public Service Co.

company

States

connection

'/

^

£

Realty-Sheraton, Inc.

with

the reorganization of the U.. S.
Realty & Improvement Co. and merger wi.h Sheraton
Coip.t 42,390 shares of the reorganized company's CQmr
»mon- will be sold to an investment group headed, by

•;Lehman'Brothers^0®'
United States Trust Co., Boston

»

-

June 4 company has called its 45,000 shares of converti¬
ble

preferred stock for redemption on*July 1 at $22 plus

40 cents accrued dividend per share.

The stock is con¬
vertible into common, share for share, at the option of
the folder, prior to 3 p.m. June 27. An issue- of addi¬
tional common stock to take the place of preferred stock
unconverted and redeemed pas been* ..underwritten' by

Spiegel, Inc.
stated that shareholders

expected to
be issued rights to buy an additional share of common
for. each five shares in the near future. Proceeds will be*
earmarked for investment for development as the com-;
pany expects to add more retail units.
Jn addition,
Spiegel believes it may need to add new mail nrjler
plants in yarious parts of the country fo effect lower
♦distribution, costs and faster consumer service, Ulore*
Forgan & Co., may be underwriters.
;
\
r
are

'Hoibblower

I

Wabash

Railway

May 1 it ^vas reported that company may possibly re-*
fuitd its $47^000,000 first mortgage "3 Wfi of 1971 with a
lowerrcoupon issue^
Possibler bidders includes Halsey,
Stuart &: Co., Inc.* and. Kuhn, Loeb jk Co.:, ?.;
^:!

if^||StevenA-(Lr#V)*::A^.rN^

May 29 it is rumored that company oxpects to do some
Waltt & Bond, Inc., Newark, N.
financing in the immediate future following the>
merger of several Southern mills in which the company '
June 12' if was repdrted company has under considera-j!
holds a controlling interest. Reported Morgan Stanley
tibn a refinancing program. Announcement expected,, at i
probable underwriter.'
'

;;eafJy:.;dat0^:Z^t:£i^«|;.S|^

Sunray Drug Co.
May 23 reported

" |

/

company

' - * "

■

" '

*

Western

plans registration in, imme¬

Used to pay $1,000,000 bank loan and for
Probable underwriters, Eastman, Dillon

working capital
& Co.
r

Company proposes to retire current funded debt ($11,640,683) and to issue up to $10,000,000 new bonds, but
limited originally to $6,000,000.
Probable bidders in¬
clude White, Weld & Co.; Blyth & Co., Inc„ and First
Boston Corp.
Seaboard Corp., Harrisburg, Pa.

V

Pacific RR.

Co. Inc.

; *;

;

S: ®ill;|:SW§W0r&

Public distribution

1981; proceeds to be used to refund a like amount- of
Brgt Mbrtgage 4% bonds due Jan. 1, 1974, and held "by

with

•

of securities of Bunray is proposed

Eastman, pillon & Co. principal underwriters,;

JtFC.

Texas Co.,

was reported that the company which recently
announced* plans to retire two outstanding debenture •
issues totaling $100 million with a new issue, is under-.
stood to be exploring the possibilities of placing the new

than marketing
publicly. No decision has been made it is said. If
•public offering is made pillon, Read & Co., are expected
to head

The - direc¬

^CfCo., anq Glore, ForganAc Co,.

|

;

Wiggins (E. W.) Airways, inc.

,

„

j

,

4 reported company plans to sell 1,000 sharesiof

pts capital stock at par ($50) a share. Proceeds would

WE TAKE PLEASURE IN ANNOUNCING THAT

Textron, Inc.

1

.

Blyth & Co., Inc.; Bear, Stearns & Co.; Halsey, Stuart
& Co^ Inc.; * Merrill Lynchr pierce, Fenner M
Beane;
Shields

fjune

underwriting group.

Interest .rate to be specified in bids.

tors have rejected the conditions attached by the ICC
but the company on May 27 filed a petition for recon¬
sideration and oral argument. Probable bidders include

bonds with insurance companies, rather

-used for purchase of

machinepr, working capital, etc.

?be|
1

stated that a plan was under way to acquire the assets of Nashua '
ill Wisconsin Public. Service Co., Milwaukee,; Wis.
Manufacturing Co.*, 95% of the common stock of which
is owned by Textron. Probable underwriter, Blair & Co.
May 20 it Was reported that Standard Gas & Electric:

April 30 it
finance

was

a new

company to

HAS BECOME ASSOCIATED WITH OUR

Co.

Toledo

SALES DEPARTMENT

f,

•

April 1) ICC conditionally authorized company to Issue
$10,000,000 first mprtgage bonds, series
due Jan^ 1,

them

MISS SARAH METZ

„--• + -

May 1 proposed merger of Sunray and Transwestern;
Oil Co. announced, subject to stockholders'. approvaL t

June 7 it

:

April 30 John Stapf, President, announced that proposals
and plans for the refinancing of corporation and affiliated

" 1

Ifuhn, Loeb & Co., and Halsey,

If'Western

| Sunray Oil Co.

Maryland Ry.

22 reported company working on plans to refinance
$44,901,000 first mortgage 4s. Probable bidders include
ay

diate future of $2,000,000 debentures. Proceeds to be

petitioned the Missouri Public

Service Commission to simplify its financial structure,
including reduction in interest and sinking fund changes.

:

share and accrued dividends.

new

|;:;

St. Louis

a

United
In

~

was

i (N. J.):f

4 stockholders voted to approve the

issuance of
213,287 shared of new 4%% preferred stock in share^forshare exchange for outstanding 7% preferred stock. Any
unexchanged' 7% stock will be called for redemption at

&

.

Southwest Merchandise Market,

June

was

Lehman Brothers.

,

Co.'s

stockholders

common

-

Power preferred share,,and one-twentieth share for eachcommon share of Light & Power.
The Rail¬

sell

June 3

•

.

Public Service Corp. of New Jersey

June 11 it

SEC

Southern

to

Light Corp., would be given rights to subscribe to United
Gas Corp. common stock-and stock of the new holding
company Southern Electric System, Inc. The latter com¬
pany would be formed to hold the stocks of Arkansas
Power & Light Co., Louisiana Power & Light Co., Mis¬
sissippi Power & Light Co., and New Orleans Public

June 12 it

,

proposes

to

probable underwriter if sale of securities takes

place,

•

in

.Service Inc.

may

•

Corp.)

i

.

-

successor

Southern Electric System,

with

May 17 stockholders voted to increase capital stock from
2,000,000 shares of common to a total of 3,370,057 .shares,
consisting of 250,000 preferred shares (par $100), 2,500,000 common shares (par $3) and 620,057 class B stock

York

(to be

United Light & Railways Co.

advising stockholders of" its former- parent, United
Light & Power Co., that July 1 is the final date for (ex¬
changing their holdings under -terms of < the dissolution

May 10 pursuant to substitute plan for retirement of
preferred stocks of Electric Power & Light Corp., filed'

April 24, W. H. Wenneman stated that refinancing of

Co.

Southern Co.

'^onstruction.3i^J^^:i;:y .■ ■|(1|J>||

Marquette Ry.

Philadelphia

owners,

Commonwealth
for cash (when
Commonwealth's recapitalization plan becomes effec¬
tive) sufficient common stock to realize $10,000,000, to
:&

Pennsylvania Gas & Electric Corp., York, Pa.

j&

Is

Southern Co., New

May 7 corporation applied to the SEC for permission to
sell all of the common stock of the Petersburg & Hope¬
well Gas Co. (a subsidiary) consisting of 55,000 shares
(par $10) to Scott, Horner & Mason, Inc., of Lynchburg,
Va., for $600,000, plus closing adjustments.

Philco Corp.,

'•

The

Pierce, Fenner & Beane.

.

.

it is

Smith,

company's $59,749,000 first mortgage 3%s will be un¬
dertaken following consummation of merger of road
with Chesapeake & Ohio Ry.
Probable underwriters
include Halsey, Stuart & Co., Inc., and Blyth & Co., Inc.

New

-

newnapital.)

Barney & Co., Kidder, Peabody & Co., and Merrill Lynch,

Pere

,

controlling interest in
group composed of Stifel Nicolaus
Dittmar & Co,, .San Antonio, and

said, plan considerable expansion of the company, in¬
cluding installation of new machinery, etc., necessitating

SEC for permission to
first mortgage bonds series of 1976,

March 28 company applied to the

bidders

Texas i

announced of

was

the. company to a
& Co., St. Louis;

Pennsylvania Edison Co., Altoona, Pa.

able

Mousioii,

Seven-Up Texas Corp.f

plans for refunding the corporation's .200,000 shares (nopar) cumulative $5 dividend preferred.

Union Pacific RR.

May 9 it was reported ofRcials are considering the qiies-;
tion of meeting the, $100,000,000 first mortgage railroad
.and land grant 4's due July I, 1947. However it is felt
maturity date is too far away fa jtetermine pow whether^
issue will be paid off in cash or will be refunded. If
company decides to-refund through* new issue probable
bidders will be Kuhn, Loeb & Co., and Halsey, Stuart;
& Co. Inc.
1
>1

water utilities located

.June 7 directors authorized the management to prepare

issue (a) $23,500,000

Thursday, June 13,1946
•

(Ohio)

Edison Co.

expected to seR at "competitive bidding :some time;

ih June its holdings of 1JI99,970 shares of common stock.;

May 28 it was reported that a refunding program is
ProbaM^bidders include The Wisconsin Co.; The First]
contemplated at an early date for this company to be ; .
followed later by sale at competitive bidding of the com- ; poston Corp.; Harriman Ripley & Co.
k]] i.
•"
: i.
/
,s" "
-r
mon stock now held by Cities Service Power & Light Co.
r••
'■
"■ '■
|

|

•

|
It Is rumored that company contemplates

SECURITIES ENGRAVING CORPORATION

obligations.

67-69 Park Place, New York 7, N. Y.

Telephone: BArelay 7-8537




of ,1971

refunding its
with lower cpst ; (for

f

would include Dillon, Read

•

•'

•••

-

Union Gas System,

Inc.

,

*.

1

-

* 1

t

(Kansas)

Under provisions of merger plan of
Inc. (Delaware) and Union Gas

Yonkers (N. Y.) Electric Light & Power Co.

■

Union Gas System,
Inc. (Kan.)

Issue 1

(to be sold through competitive bidding. Possible bidden
(include Halsey, Stuart &' Co.; Inc.r Morgan Stanley &

|co.;

System,

authority to issue $9,000,000 30^year debs., int. rate

(not to exceed 2%-%, to be guaranteed Iry parent.

& Co. Inc., and Halsey, Stuart & Co., Inc.
—

Engravers and Printers of Securities

3%s

Possible bidders

.

Jan. 21 company arid parent Consolidated Edison Co. of |
(New York, Inc. applied to-New York P. S. Commission •

Union Electric Co. of Missouri

outstanding $90,000,000

■

Lehman Bros,, Harriman Ripley & Co. and

Securities

Corp. (Joint); Blyth & Co., Inc.; Shields &

and White, Weld & Co.-(Joint); W.

C. Langley &

latter has completed negotiations to sell through Kansas
underwriters to residents of Kansas only $500,000 5%

Co.; Merrill, Lynch, Pierce, Fenner & Beane and Kidder,

preferred stock (par $100) at $103 per share.

Beabody.& Co. (jointly).

•

j

Union1

I Volume 163

Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE
far the largest, got a good recep¬
tion..
The roster

issue of

100,000 shares

qp$l par common
Bros? furniture stores;
23,4,44 shares o£0k % cumulative
preferred
$10ti|f r and 56,267
of Michaels

shares of $1
Shoe

parjj *pmmon of Miles
"

Co.; 20,000"j

ft

the

convert#
60,000
shares j;

I sale by Columbia Gas & Electric

Franklin Simon

c.

Corp., in competitive bidding, of
1,5.30,000 shares of common stock
of, Dayton

Power

[under provisions
[Utility

Holding

ioroved

the

&

Light

all

Co.,

highlight

of

remark, at

recent

fore

man's

President

of

veto,

supported

der

its

Rule

U-50

which

It

This action

[tions in which banking

groups do-;
ing the bidding had nothing in the

[way of price basis to help them

|decide

on

fair

>ck of Dayton
.as

value

since

the

Power up to, now

npt been listed

harket.

on any

hstq, been expected,

there

Ideas

groups

$33,639

month,
tional

s)ock.

common

Proceeds will

be used to

re¬

V-loan-and current bank

pay a

debts and provide, in addition,
funds for expansion through ad¬

on

dition to

workihg capital,

Just what part, if any, of this

issue will reach public offering

high

holders will be' given rights to

bid

subscribe for the

share, involving

some

$51,470,000.

Dorp.,

v as

shares

of

holder f; of

four held.

2,000,000' j
Gas

con¬

stock in

new

the ratio of one share for each

This United

Columbia

touch with President Roosevelt on
the eve of the Japanese attack, a
fact

which had not been estab¬
lished before the formal hearings
closed. According to the earlier

Chief of Naval Operations at
the time, he could not recall his
actions on the night of Dec.
6,

1941, but his flag lieutenant, Cap¬
Harold D. Krick, stated that

were

serious

wiTth

Japan

in

the

that

—

the goffering

and

is

[die tender of the second group
leaving been about $3 a share less.

Municipal Market Perks Up
.

Under

present-day
circum¬
with ^ayailable
yields

stances,

proved more than ever; in the range ap¬
marketing the pealing only tb^institutional in¬

| to the sale, it doubtless

priced at $35.75 a share to the

.

sked

soon

being

after the books closed

quoted

at

winning,'j)id

fixed

net interest cost to the

the second tender set

VBeating the Gun
Tuesday's large

1.6216%.

The

.

a 1.59%

city while

$40,000,000 of 3% sinking

|:und debentures, due -I960, and

a

basis

shortest

month

a

in

the

of this year

most

competitive

entire

4

United

cents

successful

Loan
an

Bank

"Data

remainder

Admin¬

a

price.jQf.99

on

the long¬

was

slated to

est.

The City of Boston
open

bids at hqbn today

a' serious

relation

closures

BANKING

on

events

the

of the

1941

and

he had had

Admiral

are

December

RADIO CORPORATION

The

none.

If he

actually

had

would

have

stirred

an

Board

April
a

on

HOUSE,

now

the

"Street"

and

elsewhere

in

Bariking

of

Directors

;

-

payable

share

per

:

;

y "

ff-

July 15. 1946, to holders ,of
the close of business June 20,1946

on

at

THE TEXAS COMPANY

Cumulative 6% Preferred Stock, Series A
No.

;■;/

79, quarterly, $1.50

No.

share

per

Cumulative Preferred Stock,

69, quarterly, $1.25

No.

58, quarterly,

payable
record

on

$1.25

.

jij!;

share

per

August 15, 1946,

175th Consecutive Dividend
paid
by The Texas Company and its
v. <
predecessor.

5% Scries
share ; ;

A dividend of 50$• per share or two per

.

holders of

to

close pf business July 20.

at

•

per

.5% Cumulative Preference Stock
:

June S, 1946

into

clared

Secretary

r

The

of

Dale Parker

,

(2%)

cent

1946.

f

to

y

/y-';•

HE IS IN A STRONG AND POSITIVE

If;'..; y'w-'V:

position' to

obtain

remunerative business, and secure high class, responsible
customers.
Address

/

Box

-I-VI,

;

S

29, Commercial & Financial'Chronicle,
25 Park Place, New York 8, N. Y.
;
^ >




Jr.l

stockholders of record

Admiral,

and

a

LOUISVILLE

dedared

/dividend of fifty

no

the

Common

cents

Stock,

($.50)

per

! of business
.

>

share

payable June

1946, to stockholders of record

at

will be mailed.

H. C.

very

Company for the quarter ending May 31,
1946, payable by check June 25. 1946, to stock¬
of record as of the close of business
17, 1946.
"V-;;:,. ;,^;v
■; -,\;

on

x:

At

the
cents

meeting

of twentydeclared on the
Company, for
quarter ending May 31, 1946, payable by
check June 25, 1946, to stockholders of record
as .of the close of business June 17,
1946.

29,

the dose

five
;

Class

b

same

(25c)

Stock

i

..

G.

\

W.

the

.

'

\

"

June 11, 1946

COMMON DIVIDEND No. 280

active

York

;

Honduras

&

At a meeting of the Board of Directors,
held this day, ?l quarterly dividend of

share

declared on the com'
mon
stock of the Gompany, payable
June 29, 1946, to stockholders of
record at the close of business June 20,
27^

per

\

1946,

was

University trained in corporate finance,
investments, analysis of corporate finan¬
cial statements.
Eminently qualified to
interpret financial reports.
Has made
comprehensive analysis, of earning power
and
capital structures
of
the
leading
industrial, public utility and railroad
corporations.
Willing to take on-the-job
training.
Salary secondary. Box C 68,
Commercial & Financial Chronicle, 1.25
^

Park

Place, New York 8.

Rosario

Mining Company

120

Broadway,

New

DIVIDEND
The Board

York,

of

Directors

vT'

N.

Y.

June 12,

,

NO.

1946.

375.

,V'L

^of this Company,

a'meeting held this day, declared

at

interim
dividend for the seoond quarter of 1946,
of
One Dollar and Fifteen Cents ($1.15) a share
on the
outstanding capital stofck of this Com¬

payable

pany,

holders* of
Jqne

18,

'

.."

.

June

on

record

at

the

28,

an

1946,

close

of

to

stock¬

business

on

1946.
W.

O.

LANGLEY,

Treasurer.

,

UNITED FRUIT COMPANY

R. M. Waples, Secretary

;;

DIVIDEND NO.

SECURITY ANALYST

Treasurer,

*

Packing Company
■3T

SITUATION WANTED

was

of

KNOURER,

;v."

;

dividend

a

share

per

Common

the

The Garlock

trading
department
Stock
Exchange House. Write giv¬
ing full particulars. 8G, Box

yyyyiy

J

.

ELECTRIC COMPANY

June

ALLAN,

Philadelphia 32, Junt 7,1946

Securities Trader
with

AND

Sectary and Treamrtr

Canadian

Opening

OF

:: -y

GAS

holders

a

June 17, 1946. Checks
'
"

on

Treasurer

•

the

from the

Accumulated Surplus of the Company

has

shown

The Hoard of Directors of Louisville Gas and
Electric Company (Delaware) at a meeting held
on June
7, 1946, declared a quarterly dividend
of
thirty-seven
and
one-half
cents
'(37^0)
per share on .the Class A
Common Stock of

Quarterly Dividend
Directors have

The

Early Trips

^Ty ",.

■

OFFICE

company

President Planning
Truman

'

The Electric Storage Battery

Krick's

traveling plans for the month of
June according to a statement on
June 3
by his press secretary,
Charles G. Ross, who added on
being ^questioned that any plans

as

at the close
1946. The

7,

L. H. JLindeman

183rd Consecutive

President

June

on

May 24,1946

letter by the

Captain

business

stock transfer books will remain open,

and

personality,

par value of the shares
Company has been de¬
day, payable on July 1,

on

Texas

this

1946,
of

for the purpose of
presenting Ad¬
miral Stark's additional evidence

Written to him in

17, 1946.

; A. B, TUTTLE, Treasurer

•

New York, N, Y., June 7, 1946

has

Securities circles where his standing is very high.
IS KEEN-MINDED, ALERT, has a pleasant
and is easy to get along with.

outstanding $3.50 Cumu¬

the close of business June

^Senator Barkley (D.-Ky.), Com¬
mittee; Chairman, specially re¬
opened the. hearings, on
May 31

con¬

30,
per

to

by the hook$ of the .company

226, Church St. Station. ;!

up-to-date executive and administrator. Is )well

June

the

July 1, 1946 to holders of record at

ELECTRIC

action."

II

1946

1,

dividend of 87% cents

1946,
share

Stock

' No. 45, lOjS

•.

.record

said

me

&

Common

,f;"*:

ington, he could only assume that
he had "thought it was
nothing
that required any action from
me,
took

period

declared this ,day the following dividends:

miral Stark .said,
according to As¬
sociated Press advices from Wash¬

I

on

The Directors have declared, for the

Nation's history."

CORPORATION

said. If the Chief Executive men¬
tioned the Japanese message, Ad¬

and

Dividend

First Preferred Steck

fore¬

COLUMBIA

though he

was

OF AMERICA
;

of

currently at the low¬

GAS

telephone talk with
even

number

New

'

in

•

lative First Preferred Stock, payable

that

practically every branch of the Securities Industry. He is
nected

cash

a

pound on the
in the open

DIVIDEND NOTICES

DIVIDEND NOTICES

evening

him

persuaded

a

the

our

the

of

ORGANIZER HAS HAD OVER 25 YEARS of experience in
an

bought

market..v ' '

>

being
organized, is desirous of adding to its present ^experienced
personnel, by taking in one or more activ^M inactive
partners, who can contribute $250,000 working capital
or more.

a

non-

outstanding,

Stark and Captain Krick
recently
it is stated the latter

reminded

&

est level in

HELP WANTED

International Business

NEW INVESTMENT

receive

announcement May

the number of

on

pound below domestic

a

payment of 4 cents

23 which further said;
\

group

By Investment; Banking HousieOpontem

A

world

sources.

Exporters

-

an

in

The

announced the Fed¬

Home

eral

istration in

in which

Partner Wanted %>

plating

compete

cotton
grown
in
other countries, as American cot¬
ton is priced higher than that of

during the opening quarter price.

States

additional testimony was
brought forth as the result of a
conversation
between
Admiral

of .0.30% yield on the
maturities and yields of No

1.75% to

1,000 shares of 3%.% cumulative
lvertible preferred stock was by

to
with

Department's report stated
In contrast with the worst
days that since the beginning of the
subsidy program in November of
of 1933 when a rate of 1,000 cases
1944, 1,884,935 bales had been ex¬
a
day was reached, foreclosures
ported, of which most was pur¬
averaged only a little over 1,000 chased from the Government at

figure of testimony.

a

outpouring of proceeded with reoffering fixing

offerings of which American

rlines

maturingTrom Jan. 1, 1947
to 1996, attracted bids from two
banking groups.--*
\

:; The

|i6%-37y4.

lew

serials

-

currently

the open market,for export, is
designed to make it possible for

of adjourn¬

Foreclosures in

The

it

One of the largest such issues
|public the stock has since ruled at brought out recently, Philadel¬
premium 'fit a ppint or more, phia's offering Of $29,100,000 of

iving been quoted at 38 bid 38 Vz

Press

First Quarter 1946

market anything about the imminence of
war or
anything requiring action,

the
rnunicipal
shows signs of.
perking up,
vestors,

connections

in

were

Pacific

state."

in

preparing the nbcessary registra¬
,t|\Yet there was a spread of some tion for
filing with SEC.
;
[>4,500,000 between the two bids,

ssue.

likelihood

mortgages

conditions

the White House

those

subsidized by the Agricul¬
Department until July 1,
1947, according fo a Department

Washington, that he

Nonfarm Real Estate

"that

could not recall what

to

Associated

be

ture

exporters

in

underwrite

lelpful

little

said afterward that
President Roosevelt had indicated

tended, was at least $10,000,000

'

to

con¬

markets

tain

too low,

Ito have the SEC refuse clearance

Committee

port to July 10 by vote of the
Senate and House just before the
earlier fixed deadline of June
1,
when it was learned that Fleet
Admiral Harold R. Stark was in

The company/* however, is ne¬
gotiating with a banking group to

itever the merits of the move

news

planning the Admiral had had a telephone farm foreclosures are available
the middle of next conversation with the White only for the last 20
/ears; how¬
298,971 phares of addi¬ House late on the night in ques¬
ever, it is highly probable that,
tion and had

remains to be seen since stock¬

the

the

his

Electric Auto-Lite Co., is

Two

a

ference,

told

Exports of cotton will continue

to offer around

appar¬

were open.

ing tenders and
Was

was

|narketwise, The

earlier

sees

testimony of Admiral Stark, who

made the compet¬

ent when bids

inajor

current situation

considerable

was

the de*

had

The special Congressional Pearl

Investigating

Cotton Export Subsidy

inauguration of Philippine
independence on July 4 were "ex¬
tremely tentative." Mr. Truman

ment before July 15 or 20.;!

was

public

able company financial data
[which to go.
That

selling

Common Stock Issue

They had only the avail¬

difference of

;

;

Joining the ra^jks of companies
situa-' which are taking advantage of the

those

Stark Confirmed y
May 31 received an extension
of time for submission of its re¬

pro¬

;

another of

was

Harbor Talk With

on

but the market which was higher
in
the
forenopBv turned quite

vides for competitive bidding in j
all such instances*

the

for the President to go to Manila

for the

announcement released on April
hoped to take the Pacific trip but ,25 and reported from Washington
that it depended on the legislative by the Associated Press. The sub¬
situation. As far as Congress is sidy, applying to both Govern¬
concerned, Senate Majority Lead¬ ment-owned cotton sold to ex¬
porters and to cotton bought in
er Barkley has remarked that he

Roosevelt Pre-Pear!

Harbor

Tru¬

by

clearance of the deal, was itself
op something of a "spot," to use {
sharply
lower Ton
late
the vernacular, since the entire .!
which was generated by
transaction was Carried opt un¬ yelopment. ,,
r

[

and

advised from

<

House, of the Case Bill,

Securities and Exchange

Commission, which was asked
liy interested parties to refuse

of

common

Co., Inc., were

th&f&ose of the day,
offerings had caught

news

19

and

the market jd§t right, that is be¬

[public offerings.
The

cumu-

preferred

f

dealers;were moved to

that these

June

May 22, 1947 with interest
payable at maturity on a 360-day
basis. This of course, was strictly
banking paper.

well-taken.;
Some

;

of the Public
Company Act,

4V2%

w

lative

surrounding

dated

due

p., common and

50,000 shares of;

Complications

of Taylor-

ares

craft Aviation

$20,000,000 of Common¬

wealth notes

fbpjhe day included

3259

A

LOEW'S INCORPORATED

of

fifty

stock

of

this

clared

"THEATRES EVERYWHERE"
1

dividend

capital

June 11,1946

of

payable

record

July

cents

188
per

Company

15,

1946

share
has

to

on

the

been

de¬

stockholders

at the close of business July
LIONEL

W.

1, 1946.

UDELL, Treasurer.

THE Board of Directors on dividend of
June 10th,
1946 declared
quarterly
a

37%c
mon

per

share

Stock of

on

the

the outstanding Com¬
Company, payable on

LIQUIDATION NOTICE

the 29th day of June, 1946 to stockholders
of record at the close of business
18th

day of

mailed.

on

the

June, 1946. Checks will be

CHARLES C. MOSKOWITZ.
Vice President & Treasurer

Meriden
National
Bank,
located
at
Meriden, Connecticut is closing its affairs. All
creditors of the association are therefore hereby
notified
to
present claims for payment.
The

,

Dated

May
■*

13.

1946.
FRANK O'BRION, Cashier.

r

■

.

Thursday, June 13,1946

CHRONICLE

THE COMMERCIAL & FINANCIAL

3260

gested to the National Advisory partmental committee to counsel
Council- by William
McChesney with Ex-Imp. The personnel of
Imp itself might like to have in¬ Martin, Jr. would designate the that committee is identical with
cluded in the legislation and per¬ Federal Reserve Banks to act as that of the NAC, which was set
haps which
other
Government fiscal agents of the Ex-Imp in col¬ up in the BW enabling act. Only
the chairman is different. In fact,
\Y;
Y'YVY1'
agencies also might like to see lections.

the matter. There are one or may¬

Bequested

Export-Import Bank Expansion to Be

be

Ex-

the

which

matters

more

12—The $iy4 billion expansion of
the Export-Import Bank's lending authority foretold in the Presi¬
dent's annual budget message and subsequent Administration state¬
ments will be formally requested of Congress within a few days included. Y
;y
/.:• Y r
/when an implementing bill is introduced. Even with that amount,
For one thing, under the Cor¬
the loan requests which the Bank faces or is likely to face during
porations Control Act passed by
the next 12 months will exceed^
WASHINGTON, D. C., June

unless

the Bank's total resources,

American

governor

the

of

State

much

,A

important ques¬

more

tion which has arisen

on

numer¬

occasions in the work

ous

of the

the NAC alone has functioned as

such, and the gavel has
passed around the table.

Congress last Fall, the Ex-Imp—

cerns

Advisory Council con¬
the degree of independence

like others—will be outlawed un¬
being estab¬ Bank of Ethiopia, has been nego¬
which
Ex-Imp is
intended by
with the United States less it applies for Federal incor¬
lished takes hold of the problem tiating
Congress to have. This subject
Government in Washington for an poration and gets it by June 30,
in'a large and vigorous manner.
will be discussed in a subsequent
1948. This might be done in the
■ ' :
;
The countries of the world which Ex-Imp loan.
issue of the "Chronicle." Suffice
Whether the new bill will sim¬ imminent bill, or it might be left
are not now recipients of-or ap¬
it for the present to say that vari¬
It is as¬
ply call for the $iy4 billion ex¬ for the next Congress.
ous members
of the NAC would
plicants for Ex-Imp credit can be
or
will include other sumed that Ex-Imp will want to welcome guidance from Congress
counted on one's fingers. Even pansion,
in the lending business
matters is not yet decided, accord¬ remain
such remote countries as Afghan¬
so as to avoid continuation of past
after June, 1948.
istan
and
Ethiopia
have their ing to one well-informed official
I. Various amendments to the Ex- differences of opinion.
hands out and George A. Blowers, with whom the writer discussed
The last Ex-Imp law Congress
Imp Bank legislation are under
With Betts, Borland & Co. consideration. A minor one sug¬ passed set up a special interde-

New

the World Bank now

W. H. Watson Pres. of

CHICAGO, ILL.—Benjamin B.
Bryan, Jr., and William B. Cudahy have been added to the staff
of
Betts,
Borland & Co., Ill

Wallace N. Watson has been ap-

President of the Estate
Planning Corporation, New York,

planned es¬
tates for individuals with a total
wealth of more than two billion
dollars.
Mr. Watson, whose ap¬

Y

Amalgamated Sugar

Mr. Bryan

South La Salle Street.

Mitchell & Co.

/ pointed

in

Y which since 1925 has

the

past

Artkraft Mfg. Com. &

connected with
& Co., 135

Leach has become

ployee benefit plans for the East¬
ern Massachusetts Agency of the
Mutual
Benefit Life Insurance

Robert

W.

ILL.—Lindsay

CHICAGO,

McMaster

F.

General Panel

/

Stock.....,...3224
Broker-Dealer Personnel Items.... .3247
Business Man's Bookshelf......... .3249
Oeiandar of New Security Flotations .3250
Canadian Securities........
3218
Dealer-Broker
Investment Recom¬
mendations and Literature.......3208

their clients and
/ with trust companies. The corpo¬
ration is wholly owned by Fidu¬
ciary Counsel, Inc., which super¬
vises investments for 85 leading
American families, whose funds
with attorneys of

over

average

total

Our
Our

Securities
Walter

/;

,

;

l

-.

Members New

York

philadelphla

telephone

Dealers

Security

'

1

Low Priced Unlisted

(hid) i

Jardine Mining

Ley (Fred T.) Co.

Trading Markets

Automatic

Signal

Palmetex

-.'.'.vt • ,y ;•{: '

..

.

Y

Y *

••

'•

.•

•

'■YY-vYYY ;■ Y- New & Old Securities

Y;

Y'-YYYY-Y'Y'

•

•;

Differential Wheel

'

.

-v.

•' •••..•

•

Y-.

V-.' Y

'

■■

-

V

PARL MARKS & HO. INC.

<

Haile Mines

Y

'

'

:

Co.

CHICAGO

Haille Mines

!-...

Insurance and Bank Stocks

5- ///:.;

/ Jones & Lamson
Lithomat

/ Keyes Fibre

,

Corp.

•

/ j

'

South Shore Oil

Milk Street, Boston 9, Mass.
New York
Hanover 2-7913

Securities with

Established 1924

Grinnell

Sunshine Consolidated

Pressurelube, Inc.

Market

__

•'

•„

/ "

■

New

...

"v.?-"!

-

-

"

Teletype NY 1-886




.

v

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Puklic

Utility—Industrial — Real Estate
Lumker 8c Timber

;'////!!Y":';!

Bonds, Preferred and Common

BO 9-4613

5, N. Y.

Tele. NY 1-1448

has

Y

Inactive

Stocks

Securities

Square, Boston 9, Mass.
Teletype Bs 69.

Telephone Hubbard 1990.

^Seaboard Fruit Co., Inc.

"General Products Corp.

*Susquehanna Mills

REMER,

Empire Steel Corp.

SOUTH

on

request

MITCHELL & REITZEL, INC.

Common

New York

Available

*Prospectus

Engineering

man¬

CARS

LERNER & CO.

-i'/J • Y{\ /y//'

BOUGHT—SOLD —QUOTED

Amos Treat & Co.
Wall St.

FREIGHT

**;

••

Common

40

of

«Y vi

Northern Eng. Works

&

this -well-established

10 Post Office

208

BeII

V,

'■

:

W. T. BONN & CO.
Telephone COrtlandt 7-0744

v

Bank — Insurance/'"•'/•;'•/;!Y„

Tele. BOston 22

Common

Preferred

New York 5

t'

Fleetwood-Airflow, Inc.

Eastern

Broadway

' V;-

Specialists in

Farr ell-Birmingham

120

of

Setting Under 13
Y-Y Y:V

! LOW PRICED STOCKS
I
For Your Retail
-

MARKET

ings and dividends.

Established in 1922

1

'

COMMON STOCK $10 PAR

/ 24 FEDERAL STREET, BOSTON 10

Radiator, Pfd.

^

favorable long-term outlook for earn¬

England Unlisted Securities

Tel. HANcock 8715

HAnover 2-7914

RALSTON STEEL CAR CO.

HANOVER 2-4341

N. Y. 4

teletype—n. y. 1-2866

Specializing in lUnlisted Securities

.

U. S.

|

■

Stock

New Eng.

Teletype BS 259

:

Y. Telephone

N.

TRADING

Stocks and Bonds
a

Boston 9, Mass.

:

"\

TEXTILE SECURITIES

Teletype
BS 328*

State St.,
CAP. 0425

ufacturer

:

descriptive

Trenton Valley Distillers

BROAD ST.,

.

Boston

Southwest Gas Producing

7

;Y

y;;/y^:yy

Frederick C. Adams & Co.
RALPH F. CARR & CO.

Hubbard 6442

148
Tel.

Morris Stein & Co.

^

31

Reiier Foster Oil

Investment Trust Issues

Common

Merrimac Hat Common

Thompson's Spa

50

*

*

call for

Recordgraph Corp.

,

Public Utility

or

analysis P-K-M

Industrial Issues

:r

price

FOR DEALERS:
—

•.f''We specialize in all

Common

1

.

IVrite

•

•

Recent

(e) estimated
YY":Y:'

Red Bank Oil

Huron Holding

,

Felt

(1)12V2

share

per

-Y'!:'Y *

Standard Silver & Lead

YYYYY-:." !

American

•

Corp.

New York 4, N. Y.

;

AFFILIATE: CARL MARKS & CO. Inc.

>

(1)1714

10

-

Asphalt

Gaspe Oil Ventures

AFOREIGN SECURITIES

YSPECIALISTS

v

Sterilizing

Electric Steam

Y

Rademaker Chemical

Duquesne Natural Gas
Federal

50 Broad Street

14'/4

*

;;

Petroleum Conversion

Copper Canyon Mining

ABITIBI POWER & PAPER CO.
-j

0.50

......

(*)

(1) 1946.

Martex Realization

1.61

1.49
." 0.35

High price (hid)
Low price

Securities

3.70

-

.......

Dividend
>

■

.

1.69
(after

taxes)

Bendix Helicopter

*

.22.00

(Before

'

taxes)

Earned

on

Teletype—N. Y. 1-971

HAnover 2-0050

'

.........

#16.03
191.50

.#1.07

Earned

"

3228

Section

Securities

.........

Sales
■:
■

1945

:

Cap-

Wldng

it a!

5

Y Y"

^Jf-1939 f >

/

■

new

Aircraft & Diesel Equip.

''

'

bell teletype
york 1-576

v

v

Admiralty Alaska Gold

Y

' "

Net

YORK

telephone

Enterprise 6015

REctoe 2-3600

"

"

electronic and jet

Entered the

VY propulsion field

3207.

page

Firm

y

Association

STREET/;NEW

NASSAU

45

'

A Market Place for

Says

Whyte

Illinois

different industries.

metals.

Wilcox-Gay Corporation;,

INCORPORATED

Markets—

Tomorrow's

corporations in 30

precision products using the
lighter and slower oxidizing

Virginia Dare Stores
.

manufactures

and

Designs

Cargo

Ventnor Boat Works

3208
Salesman's Corner....... 3241
Now in Registration
3250

Securities

financial

agement Planning, Inc.,
advisors to 87

P-K-M

Securities

Real Estate

also own Man¬

•

1-1397

Y.

Tetetnw N.

Corporation

Trans-Caribbean Air

v

•

HA. 2-8780

V

Kobbe, Gearhart & Company
-

YY~---':

Asfn

Y. Security Dealers

Exchange PI., N. Y. 5

Securities.......,......... .3220

Railroad

principal owners of Fidu¬

The

ciary Counsel, Inc.,

Reporter on Governments
3232
Reporter's Report............ 3259
Utility Securities............ 3204

Public

ESTABLISHED 1919
Members N.
40

O'Sullivan Rubber
/ Telecoin

*

M. S.WIEN & Co.

Higgins, Inc. / wY)■ Y'! /Y;Y
Int'l Resist. 6% Pfd. & Com.

'

,

.3226
3206

Mutual Funds..;

$5,000,000 each and

Cinema "B"

Majestic Radio & Television

Greater N. Y. Industries

Notes.........3243

New3 and

Municipal

U. S. Finishing

Lear Inc.

Globe Aircraft

Insurance

NSTA Notes

$500,000,000.

over

Page

.,YY:vYY>-'
and

Michaels Bros.

Scophony, Ltd.

*f Kut-Kwick Tool Y Y:

Du Mont Laboratories

'

Bank

v

District Theatre

■

-Jy'

#

tion, whose offices are at 40 Wall
Street, specializes in planning estates on a fee basis, cooperating

Roberts & Manders

Kropp Forge

-

Helicopter

D. B. Fuller

INDEX

Corpora-

Planning

Estate

Rhodesian Selection (

r

Ironrite Ironer Com. & Pfd.

Consolidated Industries

South! La Salle Street.

Company.
The

Pfd.

::Yv/f
Bendix Home Appliances
Buckeye Incubator
Clyde Porcelain Steel
Bendix

Chronicle)

to The Financial

(Special

Y

Baltimore Porcelain Steel

Joins Robert F. McMaster

pointment was announced today,
was
previously manager of em¬

Y

'"

American Time Y//YZ

with Winthrop,

was

England Public Service

Gaumont-British "A"

;

Chronicle)

(Special to Thb Financial

never

National

LA SALLE

ST., CHICAGO 4 •

WESTERN UNION TELEPRINTER

"WUX"

•

PHONE RANDOLPH 3736

BELL SYSTEM TELETYPE

CG-989

Hill, Thompson & Co., Inc.
Markets and Situations

Tel.

for Dealers

Broadway, New York 5 ..
REctor 2-2020
Tele. NY 1-2660

120