Full text of Commercial and Financial Chronicle : June 13, 1946, Vol. 163, No. 4498, Section 2

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■ESTABLISHED 1839

Final Edition

In 2 Sections-Section 2

Chronicle

Financial

Reg. TJ. S. Pat. Office

•Volume 163

New

Number 4498

Economic Trends
By LEWIS W. DOUGLAS*

;

Insurance executive, noting in times like present, we must believe
tedious and faithful pursuit of truth will overcome ignorance, ;

"No man is stronger than 140 million people." The one
thing that neither unions nor union leaders can successfully
ignore or defy is 'public sentiment'. ■' "The labor movement
can never for any reason or excuse afford to alienate ,the
sympathies of the rank and file of the people," •'The unions
themselves exist and their tactics are possible in the. first
place only upon the sufferance of the great body public."
How often have all of us heard or seen in print these and
other statements of the same purport during the past half
year! Yet, Mr. Lewis and his coal miners, Mr. Reuther and
his automobile workers, Mr. Petrillo and his musicians, and

President in letter

to Chairman

of

Second Annual Dinner of Liberal

<

prejudice and deceit, calls attention to two opposing codes of
Party in New York, asserts there
behavior, one upholding individualism and the other statism.
is now greatest need for democracy
;^ Calls for critical review of facts, experiences and consequences, ■> in our own country and for all
and points to rise in permanent unemployment and the breakdown
mankind.
In a letter addressed to Samuel
\ of free trade policy as illustrations of fundamental characteristic
of'society to change or invalidate policies that have produced v Shore, Chairman of the Second
Annual
Dincalm and plenty.
ner
of the
•

human

v

'

'

~

When, in times like the present, the intellectual and emotional
atmosphere becomes charged with prejudice and bitterness there

Liberal

sometimes

City

Party

New

render to outward

hope oJ
shuccess fully
recapt u r i ng
thatrespectfor

The only

deceit.

alternative

discipline and
the arbiters

man

organized violence

as

of human affairs.

This is an al¬

racy

face

which

to

we

will

not

willingly submit, for

stated

knowingly

it is repugnant to our conception
of the dignity and moral responsi¬

and

bility of the individual.

"n ever

that

restraint
the

are

to

or¬

of

But

we

rection

in which

we

persistently

can

be¬

d

President Truman

what the have such'
facts are or, what is worse, when great need for democracy." The
that tedious
I see us charting our course in text of the letter iollows:
'
and faithful
Lewis W. Douglas
open and stubborrt
defiance of
pursuit of the
THE WHITE HOUSE
truth will ulWhat appears to be convincing
■; ^-in¬
V
WASHINGTON
timately. at long last take their evidence.
May 15, 1946
Let me make myself more ex¬
toll of ignorance and prejudice
Dear Mr. Shore:
plicit.'
My heartiest greetings to the
♦An address by Mr. Douglas at
Throughout Europe there is a
Second Annual Dinner of the Lib¬
the National Bureau of Economic vast body of clinic economic and
eral. Party.
Research Dinner, New York City, political
material
accumulated
You are gathered at a most cru¬
June 6, 1946.
(Continued on page 3270) ;
must believe

without knowing

move

discover the true inwardness of what has; taken

not

place, and what is today taking place, in these phases of our
economic and social systems. Let no one say that .pot ,all,
or
nearly all, of the recent strikes have ended in "victory"
for the strikers.
It has often been said, and it may be true,
that Mr. Reuther and his men could have" obtained what they
finally got from General Motors without a prolonged and
costly stride. A number of observers have held that Mr.

our

mankind!

all

...

probably be well for us all to turn away from
popular slogans and home-made proverbs, and to see. if; we

that

a n

,

It would

survive,

an occasional spell
fore
did
despair when I observe the di¬ country

social

der:

is

1

The Facts.

great test if it

I confess to

foundations of
our

or

sentiment.

democ¬

t

a

for individual
-

;

the next

ternative

and

profit thereby, notwithstanding that
by all indications available to us they have gone far in alien¬
ating public sympathy and are definitely defying popular

still must

th

to strike or

threaten to strike and to

on

that capacity
self

other labor leaders and labor unions continue

York

to this belief is unconditional sur¬

little

reason

in

May
15,
President
Harry S. Tru¬

and

be.

to

Seems

Copy

Democracy Work
—Truman

President, Mutual Life Insurance Co. of N. Y.

*

a.

We Must Make

Weighing and Interpreting
v

Price 60 Cents

York, N. Y., Thursday, June 13, 1946

'

Lewis could have obtained the terms

"

on

which his

men

went

back to work in the soft coal mines without work interrup¬
tion—or at least that he could have had the basic essentials
(Continued

3264)

on page

cial moment in the life of nations
and

peoples. The forces of free¬
shown that they can
out-produce
and put-fight the
regimented hordes of despotism.
Without this victory democracy
dom; have

From,

Washington
A head of the News

Controls

could never survive. But evert this

brilliant and vital victory is not

enough.
Now that

By CARLISLE BARGERON
It is a commentary on

Twenty-five Years of Monetary

we are

days," the use
the terms "Liberals" and "Reactionaries," that the
latter have known for a long time of the situation on the Supreme

to

Only then

a period of destruction.
which is something different from
capitalism, has been (1) very effective in providing economic satis¬
factions, but (2) highly unstable, and economically costly. - Cites
long list of legislative measures embracing every aspect of money
economy, ensuing from our 1907 panic experience.
Avers state
control to make necessary equilihriating adjustments has proved
efficacious in war finance, but is now to be crucially tested in peace.

the triumph of the

can

———

,

GENERAL CONTENTS ;
'

Editorial
Page

;•

Financial

^

Situation.,.-

.....3261

Regular Features

.

.

,

From' Washington Ahead of the
-V;

Nows

..............,.,..3261

Moody's Bond Prices and

Moody's Common Stock

Yields.. v. 3271'

Yields.,>..3269
.3274

Trading on New York Exchanges,.

NYSE Odd-Lot Trading;.........,.. .3274
Items About

Banks and Trust Cos. . 3265

ble,

All

State of Trade

freedom from the threat to peace
and the menace of aggression and

peo-

pie

are taught
to be respect¬
of
some

form

of

au-

thority.
B

r

i t

a

ation,

In

can

the

labor

King.

an

an

differing political

parties.

Our so-called

before

did

our

country,

and all, mankind, have such

sus¬

.

over

need for

great

democracy. Never before

.....,.,.,..........

.

of that court were removed from

Movement..;.....'..3275 the rest of us; Over the long years
Fertilizer Association Price Index...3272 of our existence they were men
Weekly Coal and Coke Output.,.,..3272 who had attained ages, when they
Weekly Lumber

Review...u.,3272 had
Moody's Daily Commodity Index.,,.3271 flict
Weekly Crude Oil Production...,,.,3273
Weekly Steel

Non-Ferrous Metals

Market...;». .,>.3274

Weekly Electric Output............ .3271




no

more

of

was

Political

parties

come

an

urgent need for

lance of true liberalism

today.

There

are

3269)

a

of mir¬
it was
g e

—

as

there is

achievements

able, perhaps,

and in its ulti¬

tive

mate

there'

viction that he

of

*

:

•

...

'Vm.HARRY S. TRUMAN

"

con¬

at last master

own destiny.
retrospect, at least, the; litera¬
ture of the early years of the cur¬
rent century give an impression

In
Dr. Robt. B. Warren

at

Very "sincerely yours,

was

of nature and of his

faint

overtones

were the construc¬
achievements of science and

technology, giving mart the

powers.

Only here and

the first test and the greatest task
~

century of creation—

which served, or. seemed to serve,
human needs. Equally remark¬

not

of all genuine liberals.

a

^

of

pride
actual

its

in

was

filled; when a great empire de¬
cayed and fell asunder, it was re¬
placed by new and more vigorous
states, and in society generally
new
institutions
were
created

doubt, as in
tiges and expressions of totalita¬ Kipling's Recessional and in Hen¬
rianism to*be overcome. Here is ry Adams' Virgin and the Dynamo.

and they could go, but

on page

It

the empty spaces of the earth were

still many ves¬

*

(Continued

the'nineteenth century was an age of faith. It
in its institutions, it believed in itself.

there, toward
structively critical spirit and vigi¬ the end, were

'

could

there such

way

the open-mindedness and the con¬

interest in the con¬

life.

age

acles,
pride

Never

Democracy

own

economy,

Because it was

unions and into

Commodity Prices, Domestic

Paperboard Industry Statistics..;.>,3275

In its

.

money

believed in its ideas, it believed
Because it was

truly liberal forces be free to
organize themselves into bona fide

in the

.3262 these
long ;
Carlisle Bargeron
Index.3273 years because we had a continuing
Weekly Carloadings......,......... ,3275 symbol of Government.
It was
Weekly Engineering' Construction. .3272 the Supreme Court of the United
Totals for May.................... .3273 States.
Supposedly the, members

•General Review

then

and

symbol is the

tained

Only

our

unhin¬ an age of faith,
control it was an age
associ¬ of miracles.

war; freedom of worship
dered by State or military
and freedom of press and

ful

has been
.

dictatorship imposed by political
monopolists; freedom from want
imposed by economic royalists;

through
propaganda as
being invinci¬
up

achievement, 20th Century represents

and

Asserts

democratic

But they are

:

Study, Princeton

Dr. Warren maintains whereas 19th Century was an age of faith

survive,

must face the next great test.
We must make democracy thrive.

we

way of life be real and
not people who believe in wreckage.
All people must have something to look up to. They need some complete. Only then can the peo¬
ple of every country—vanquished
symbol of authority.; The dictators enforce by an iron rule, but
and victor alike—fuliy enj oy free¬
^nevertheless
dom from the fear of tyrannical
they are built
'
*

Court.

r.r

Professor of Economics, Institute for Advanced

assured of the

ability of democracy

the political terminology of these days,

By ROBERT B. WARREN*

of

so

Research, New York City, ;June
6, 1946.

of

complacency
of

ultimate

as
or

penultimate realization of arrival
or

*

An address by Dr. Warren be¬
fore National Bureau of Economic

much

fulfillment

haven.
a

just

outside of

There

was

a

desired

something

of

feeling that the giants had. all

(Continued on page 3268)

3262

THE COMMERCIAL & FINANCIAL CHRONICLE

Goi. Pope Again Heads
Commerce & litd. Assn.
H~

Colonel

Allan

•

M.

April Glass IRR. Gross Earnings $211,870,790
Lower—Net Income Off Abouf $76,858,000

Pope, Presi¬

'"Slight gains occurred in total industrial production last week

tion,

was

as a result of the ending of some of the major labor disputes which
have harassed business and industry in recent months/ Notwithstand¬

elected

ing their settlement, however, many minor strikes continue to stal

C

essehtial materials and components so necessary to increased output
-'The threatened maritime strike poses an additional stumbling

and

block

in

' early

an

return

to

dent

April, 1946, had an
deficit, after, interest and rentals; of $21,300,000 compared
a net income of
$55,557,900 in April, 1945, according, to reports
filed by the carriers with the Bureau of
Railway Economics of the
Association of American Railroads and made public on June 4.
Oper¬
ating'results in April were affected by the coal strike and the rail*

ommer ce

Industry

New

above the same 1945 week

a

re¬

the

CLASS

Association of

a

more- normal
economy, and
the
distant rumblings of possible new

estimated

with

Presi¬

of

/• Period End.
Apr. 30
;:///
Total operating revenues...

York

Total

and Harold F.

year

operating expensesOperating ratio—%

.Sheets, Chair¬

./>
Wholesale business was also re¬
duced by the Memorial Day' holi¬

'Board

pect of peace and quiet on the la¬
bor front less promising.

day with dollar volume of whole¬

,cony-Vacuum

Total unemployment compensa¬
tion »■ claims in the week ending

previous

ago.

eruptions in the rubber and auto¬
motive industries make the pros¬

sale

were lifted by about 10%
above,ithat of the previous week

a result of
states; ^ which

rise

a

in only
sufficient

was

18

bination of material shortages and

four-day work week

auto¬

saw

production for the

week

.ending June 1, drop by 19.4%,
being less than one-third of the
cutput in the same week of 1941.
Steel

workers

laid

off

last

week

production

and

steel

41.7%" under that of
The

a

year

plate

most

was

other

higher than that

steel

items.: The

Free

—

output

;

©nd'

Mjihy "electrical appliances.

Lumber

production

and

ship¬

ments in the week ending May 25
were

virtually unchanged from
the previous week; order volume
.dropped about 16 per cent. Total

outpuf of hardward flooring con¬
tinued' slowly upward; millwork
output remained negligible, while
production of plywood was un¬
changed. :''
'
) •
The milling of flour

was

at 50%

of

capacity in the week ending
May 25, while production was
27.8% below that of the preceding
week and 46.9%'under that of the

corresponding 1945 week. An esti¬
112,000 head of cattle were
slaughtered at 12 centers under

mated

Federal inspection, 26% less than
in the
'previous week and 46%
less than in the same week a

according

to; "The

Iron

pa-

Production of canned

contirftifed to
tin

can-

Raw
week

steer

production the

pas

jumped 12 points to 56% of
Many mills which hac

capacity.

ing their total supplies in the
hope that fresh coal would be

be

last week in

ever

ume.
■

as

follows:

Order

volume

showed

only

Tax/Gouncil

Revenue

Internal

of

an¬

May 25 the creation of
an
Excess Profits Tax
Council,
headed by Charles D. Hamel as
Chairman, to administer claims
for relief from the excess profits
on

under Section

tax

722 of the In¬

ternal Revenue Code.
:

The

Treasury

further said:

V>

"

;

announcement

/

^

/

months

until

or

the

industry obtains from OPA

what

it

It

is

OPA

earnings

vances

production

war

in

was

high gear. In non-durable lines,
earnings were 2.3% higher, while
in the

durable-goods division

Weekly average

was

the

down 16%.

:

x

Factory' wages nave risen less
through World War I and

than

the reconversion of that
period,
the report adds. On the
average,

weekly earnings jumped 100.5%
from 1914" to 1919, and since 1939
the

corresponding / increase * to

March of this year

was

77%.

The

hourly, ;rate
in
manufacturing
jumped 114% from 1914 to 1919,
lis

against 63% since 1939.
Retail volume

shortened

week

I

.

^or this holiday

considers

to

be

proper

United

serve

The

States

as a

had

consented

member%f

„

to

other out¬

individuals

have

been

- a

on

the basis that earlier ad¬

inadequate to carry
the load of increased steelmaking
costs.
One point which will, be
given prominence will be
the
higher cost of some raw materials
were

steel

companies

</

,

\

mine)
•

or

lx =t

week

was

estimated

to

be

yli, ihtly below that of the preced.Ing week, but if

was

moderately




196,860,976

/.■;<'

-s

.

Net railway^
operating income, before interest month of April alone, they had an
and rentals, of
$10,127,739 com¬ estimated net income, after inter?
pares with a net railway operating est and rentals of
$500,000 conD
income of $99,065,326 in
April, pared with a net income of $7>
1945. The Association further re¬

ported

027,235 ill- April, 1945.

as

follows;

/

Those

12 months.ended April

1946, the / rate of return;

property
2.26%

investment

compared

return

of

with

3.93%

on

averaged
rate

a

for the

of

twelve

months ended April 30, 1945.
The earnings reported above as
net
railway ; operating

the

foads "in

same-

Region

in

the first four months of 1946,
totaled $361,118,401, a decrease of

19.8%

compared with the same
of 1945, while operating
expenses
totaled $294,990,828 or
an increase of 3.2% above 1945.

period

-

income,

Western District

;
represent the amount left after
Class I railroads in the Western '
the payment of operating expenses,
District in the first four months of
and taxes, but before
interest, 1946 had an
estimated net income, /
rentals and

other

fixed

charges

paid.

an

and cash.

Total operating revenues in the
first four months, of 1946 totaled

estimated net

terest and

,i

;

,

;•£

•

:

i

,//"'/'X

,\v

V

Eastern District

j

that

the

not

now

the

in

Western District.

'

Class I railroads in the
District in the first four
of 1946 had an estimated
after interest and rentals,

Eastern

income, after in¬

rentals, of $200,000

com-/

first four

months .of

1946

totaled

$1,007,618,980, a decrease
of 21.8% compared with the samef:

period

of

1945,

while

operating

totaled $832,568,087 a deOf 1.7% below 1945, ;
>

months

expenses

deficit,

Crease

of $33,-

000,000 compared with a net in¬
come
of $80,295,454 in the same
largely from persons period/ of" 1945. For the/month of
employed by the Bureau.' April alone/ their estimated defi¬
cit, after interest and rentals, was

contemplated

selections

Rubin To Represent
U. S. at Conference

$22,000,000, compared with a 'net //The appointment of Seymour
income of
$26,905,905 in April, Rubin as the United States Repre¬

Gobdale Heads A|B/

1945.

Hartford

Chapter;

sentative

The

•

same

roads in the first four

for

/the

Allied-neutral negotiations

.

-

sufficient scrap to enable mills

to reach
cess

of

Mr.

Goodale

lella

of

are

Carl W.

Trew-

East Hartford Trust

the

First
Vice-President;
Hewitt, Hartford Na¬
tional Bank and Trust Company,
Household furnishings, apparel, reaching such a goal./
: /
Second Vice-President; Kathryn C.
and food lines had the
One optimistic note which
largest
may O'Connor, Putnam and
Company,
Cains in volume over a year ago. not be
/ sounded for
at least a Secretary; Edward E.
Furey, First
Deliveries.; of many items in¬ month is the probability that
pig National Bank of Hartford, Treas^
creased a? uncertainties were re¬ iron' production at steel
company urer; Harland F.
Torrey, Hartfordmoved with the settlement of the
plants will be pushed to the high¬
Connecticut Trust Company, As¬
railroad strike. Total food volume est level
possible. Blast furnace
week.

^344,945,307

*6,000,000

.

it

1945

118,834,374

>5,557,900

will be made

-

the

corresponding

95,065,326-

forthcoming
on the
Marcus D. Goodale of Hartford-5 months of 1946 had a net railway subject of German external assets:
As the industry starts raising
and
related problems was an¬
Trust Company
its activity to pre-strike levels it Connecticut
of operating income, before interest
and rentals, of $20,717,993 com¬ nounced on May 24/ by" the State
will run smack into one of the Hartford, Conn, was elected Presi¬
/.,
pared with $146,027,725 in the Department, which said;
worst scrap shortages experienced dent of Hartford Chapter, Ameri¬
same period of 1945.Their net
Mr, Rubin will take the place
since peak wartime periods. Many can Institute of Banking, for the
1946-1947
at
the, annual railway operating ■ deficit before of Randolph Paul- in iiegotiations;
steel consumers who in normal year,
interest
and
rentals,;/ in /April with neutral countries other tham
times are a source of
meeting on May .24. He has been
scrap for
Chairman of the educational com¬ amounted to $8,400,168 compared Switzerland. / Substantial : agree-'
steel companies are now
operating
mittee for the past year it was with a net railway operating in¬ ment on the Swiss negotiations;
at such a low
point that the flow
stated in the Hartford "Courant" come of $45,488,730 in April, 1945. has already been announced, and!
of scrap from those
sources .is con¬
other commitments make it im¬
which also said:
Operating revenues of the Class
/-D/-3//"//
siderably restricted. The outlook
: The slate of officers to assist
I railroads in the Eastern District possible for Mr. Paul to conduct
for
which

purchase.

a level of
activity in ex¬
85% of capacity is so seri¬
ous, "The Iron Age" reports, that

slightly

10,127,739

the

the Council/

of. many

names

standing

below that of the previous
week,
but remained well above that of

dipped

545,810,822

.

several

disclosed that the weekly
average

which time

68.93

190,762,670

road wage increases.

are

3

a

price relief,

manufacturing
Were-11% below March, 1945, at

2,105,579,731

85.34
•

.

steel

all

2,076,267,783

68.25

135,209,861

pared with a net income of $21,*
624,760 in April/1945. r i <-« / //;'*
$2,432,814,881 compared with $3,~ '
Those" same toads in the first
05.4,808,819 in the same period of
four months of 1946. had a net
1945, or a decrease of 20.4%. Op¬
railway operating income, before
CWhil^/ the /initial examination erating expenses in the first four
consumers for rapid
delivery - in of claims will continue to be made months of 1946, amounted to $2,~ interest and rentals, of $70,398,943
order to start a much greater re¬
compared with $143,638,651 in the 33
by the internal revenue agents in 076,267,783 compared with $2,105,same period of 1945.
conversion activity, says the magTheir net
field offices throughout the coun¬ 579,731 in the corresponding pe¬
railway/ operating/ income,, beford
try, taxpayers desiring to appeal riod of. 1945, or a decrease of 1.4%.
interest
and / rentals,
in
April
Most steel consumers, however, will have an oportunity ifco be
Sixty-four „ Class I railroads, amounted to
$13,540,336 compared
will, continue to find shortages heard by. the Council under rules failed to earn interest and rent^
with a net railway operating in*
.i
als in the/first four
among, those
steel products ' on it:will establish,. :
months; of come of $36,846,140 in April, 1945y
which the. profit or return is low.
Commissioner/Nunan also an-, 1946, of which. 28. were in
tlje
This situation will tend to keep nounced that Judge Charles P. Eastern
District, nine
in the / Operating revenues of the. Class =.
i railroads in the Western District
Smith of the Tax Court of the $outhern
consumer inventories unbalanced
Region, and 27 in' the

interesting observation has

for

—___;

'//•// J.M

*21,300,000

,

(est.)

In the

suggested for membership and are
foregone conclusion,
being considered by Commissioner
come to light from the
report of states this trade authority, that
Nunan, who wilP announce the
the Department of Labor of the the steel
industry will soon seek a
selections at an early date. It*is
United/States for March, which general steel price increase from
An

'

30,

and economics.
Ijt /will operate
slight change during the previous
directly under {he Commissioner
week, but after steel firms have of Internal
Revenue, and will be
time
to/ 'revise
their,-shipping
primarily responsible for matters;
schedules, an avalanqhe of fresh of
interpretation, policy and pro-;
business is expected. Pressure is
cedure. <
already heavy from all types: of

food

impeded by the

June

on

Other, offi¬

re-elected

Net

y

after interest and rentals, of $20,Property investment is
value of road and equipment 000,000 compared with $82,990,456
The Council will be composed of
in the same period of 1945. For
increasing vol¬
as shown
by the books of the rail¬
15 members selected for outstand¬
the month of April alone they had
ways including materials, supplies,
ing experience in M

moving to the mills by the end of

for

shortage.

held

Pope

a

/.

meting

Joseph D. Nunan, Jr., Commis¬
sioner

nounced

year

'

C-go.

Profits

the i^xt^mree do f four

weeks,

Age," national metalworking

cut operations because of the coal

a

M.

4.

reach ' 80%

may

outlook two weeks ago were us¬

caused

Z';' at

Board

were

railway operating (be■
charges
income, after charges

,7 fore

'

Months—1945—r$2,4^32.814,881] $3,054,808,810

531,487,425

.»

//\/3;

1946—4

from

fur¬

copper

dent

Allan

Net

36,010,093

^Deficit.

elected

Vice. -/.Presi¬

cers

ther curtailment in the production
of nonrie-wiring, electric motors,

shortage of

So-

Company,

was

and

clothes

ago.

production of "sheets, strip,

of

Summer

Industry

within

26.6%.

..

fibove that of the preceding week.
Total steel tonnage output was

and tin

ingot

ingot

raised

• was

..

Oil

the

of

STATES

$770,572,290

",/•/ 8S.66

Taxes

of;/ the

RAILROADS—UNITED
-1946—Month—1945

Hamel Heads Now Exc,

during

the coal strike started to return to
work

of

/

I

$566,701,500
508,097,480 /"

first
In the first four months of
Vice-President, John K. Whitaker,
1946, four months of 1946 had a -net
strike threats for the first time President, Neuss-Hesslein & Co., these roads, which represent; a
Vice-President,3 Francis L. total of 227,799 miles, had an esti¬ railway operating income,J before
.since last fall, ,the steel industry Inc.;
interest and rentals, of $27,717,438
last week was attempting to re¬ Whitmarsh, President, Francis H.| mated deficit, after interest and
compared with $55,278,931 in the
Leggett & Co.; Treasurer, Samuel' rentals, of $6,000,000 compared
gain lost ground and contrary to
same
period of 1945. Their net
D. Leidesdorf, S. D. Leidesdorf &
with a net income of
$196,860,976 railway
general expectations the rebound
operating income before
Co.
Thomas Jefferson Miley was in
the corresponding period
will come quicker than even in¬
of interest
and
rentals,
in A|>rii
re-elected Secretary. All elections 1945.
Net railway operating in¬
dustry
officials
had
believed
amounted to $4,987,571 compared
were for one year terms.,,:.;
'/;
come, before interest and rentals
While some sources feel that the
with a net railway operating ;in-y
totaled $118,834,374 compared with
pre-strike level of steel activity
come of $12,730,456 in April, 1943,
$344,945,307 in the same period of
is from four to, six weeks j away
Operating revenues of the}.Class/
1945.
there is already evidence that the
I railroads in the Southern
Steel

affected by the shorter .work¬

mobile

that

equipment grew.

ing week. The automotive indus¬
try is a case in point. The com¬
c;

from

week,

demand for

to

'alter the total for the country as
a whole. Production in some lines
was

off

man

although it ex¬
ceeded volume in the
correspond¬
ing week a year ago. New order
volume
increased
as
bookings
were accepted for Fall attire ant

May 25
,as

trade

The Class I railroads of the United States in

■

dent of the First Bostonr Corpora-;.
'

Thursday, June 13, 1946

may

be

the

one

drawback

in

activity has been interfered with
by strikes and coal shortages to

(Continued

on page

v3270)

Company,
David

sistant

C.

Treasurer

Spencer,
auditor.

Society
■

.

and

Kerwin

for

A.

in

the first four months of

1946

totaled

$1,064,077,500, a decrease
of 19.1% compared with the same
period of 1945, while operating
expanses totaled $948,708,868 or a
decrease of 2.5% below 1945.
^

v

:

Southern Region

further

negotiations^

Mr. Rubin is Deputy Director of
the Office of Economic Security

Policy in the Department of StateHe has
been closely associated
wi.th Mr. Paul in the conduct of
the negotiations with a delegations,
of
the
Swiss Government. Mr/

first' fours

Rubin's duties in the Departmer&
of State have concerned questions?

1946, had an estimated

of German holdings in other coun¬

net income, after interest and ren¬

tries, and he participated in the

Class I railroads in the South¬
ern

Region

month of

in

the

tals, of $7,000,000 compared with a Potsdam Conference as a member
Sayings,' net income of $33,575,066 in-the of the staff of Ambassador Edwin
'
< same
' V '
period of 1945.
For the W. Pauley.
■

'

.Volume 163

Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE

rSenale Committee Approves OPA Extension Bill
*V

The Senate Banking and Currency Committee on June 5 com¬
pleted action on legislation to extend price control for a year beyond
its expiration date of June 30 but with amendments so drastic as to
•

on

meat, poultry and dairy prod-i
June 30, . Chester
Bowles, Director fo Economic Sta¬

bilization,

out

of

knife/I Z / -f ///;

groups bill falls far

short of continuing in force.' 'the'#1 ///'' • / //Y/ Y" t/'/Y V,
;■■■
existing^ law, and it is anticipated
7. By Sen. -Taffr (R., Ohio) for¬
even more seriously curtail¬
bidding the O.KA. to institute any
ing /.amendments will be intro¬ new subsidies or subsidizing any
product not subject to price con¬
duced on the Senate floor, 1
Although the Senate commit-' trol.

"from

the

Senate

be

had approved
ments which would:
*

was

for

O.P.A.

Extend

amend¬
-

one

and

year

/ 2. Decontrol/ This' amendment
forbids

in¬

O.P.A.

the

prices

of

control the

to

farm commodities
the Secretary of

any

certified by

not

Agriculture

as

are

Truman appealed to the Senate, in
a letter addressed to Senator
Wag-

to

-

New

York

•

"Times"

to

cify what agencies, other than the

O.P.A., should administer them, /

Washington.

:

even

than

3. Decontrol all meat and live¬

Y The President's letter, read to stock dairy and poultry products
the Senate, stressed- the impor¬ at the end of this month.
tance of protecting, the country
4; Abolish
O.P.A/s maximum
'from danger of inflation, and de¬ average price plan and repeal an
clared that all the gains made so O.P.A.
order' regulating; margin
tar in production and trade "could requirements on cotton exchanges.
•be swept away by inflation in a This amendment would also for¬
few short months." Mr, Truman bid the O.P.A. to place cotton un¬
•asserted that ho Would have to der price control.
;
>
* <
/
5. Reduce appropriations for the
,veto any price control legislation

the

The

Commerce, said

Department's

had the

rent

which

-

worse

and

bill

following to

"Almost

plies

all

of

May 29. .Zv/ZZ.'-Y

on

advices

also>»

Y

,Y

,

—

;;VY:.'/Y

say:

the relief

if!. .t'JIrip*

sup¬

far provided went to Eu¬
rope. Z; The Clearing Office esti¬
mated that roughly
$400,000,000 in
so

Succeed Senator Glass

relief. supplies

there is

promise of still

danger before it is too: late."

order

from

as reported

in

of

ment

,

farm

,

stability/'

$1,729,000,000 in' civil¬
nearly two-fifths of the
Government's contemplated $4,600,000,000 relief
program scheduled
to end in 1947, the
Clearing Office for Foreign Transactions, Depart¬

ap¬

lions who go to make up our great
country are awakened to their

being in short sup¬

price increases for any
commodity remaining .under
Jier (D.-N.Y.), Banking committee control. By April 1, 1947, the Pres¬
chairman, for prompt renewal of ident would ^report to Congress
"the legislation without amend- what controls he thinks should be
-inents
"that
would
jeopardize extended beyond June 30 and spe¬
the

the homes

on

1945 the United States

On May 31 Thomas Gtfanvillo
went
to
Italy:
$325,000,000 to* the Balkans, Burch, Democratic member of tha
more inflation¬
•chiefly Greeceand Yugoslavia; House of Representatives ' from
ary amendments to come.
the Fifth Virginia
Congressional
$265,000,000 to France; $85,000,000
'•Here' are the; makings - of ah to Poland;
district since 1931, was naimed o?*
$80,000,000 each to the
economic tragedy for every Amer¬ Netherlands : and
Belgium; and May 30 by Gov. Tuck of Virginia
ican family. .The situation
to succeed United States Senator
can *$65,000,000 to Czechoslovakia.
still be
"Broken down by commodities Carter
Glass
saved, but only if the mil¬
(Democrat,/' Va.}f
a

dicated-.cm..May -23-when President ply and authorizes the Secretary

"economic

inevitably threaten the

controls

// passed- by the House

-

beyond June 30, 1946, its expira¬
tion date under present law. 7

bill/ it became

would be continued

1.

•

^dministratibh's laCk/bf optimism
: that price control iri its present
xorm

already

that/;"The Wall Street Jhey live," he stated. "
;
•
advicesr continued, the
Y'The Senate's recommendations

committee

evident in the first week of delibmany
controversial
.ideas.existed to be ironed out. The

has

...

Journal"

eliminated

^eratioh, that,

71 77/; //

During the period July 1, 1943-Dec. 31,

.

Government furnished foreign countries with
ian supplies for relief and
rehabilitation, or

destroy the price controls on the
things Our people eat!; and wear

,

would

dull

a

proved amendments which would

that

House

7/7

"The committee

"

•drafting the legislation/had voiced
.an..opinion that many of the lim¬
itations in the measure passed by

Foreign Countries With
i Over Billion Dollars in Civilian Supplies

Senate

price control with

4

"the

the

on May 27 of
"quietly
effectively cutting the heart

and

bring forth the protestations of Administration leaders who have been
bending, efforts toward achieving a strong measure. Although differ¬
ring from the House-passed version, the Senate

-Prior to

accused

committee

"

-

U. S, Furnished

ucts; effective

J

tee's members, when
they started

3263

4

v

the

Clearing

Porter,

in a statement
commenting on a; Gallup poll of
price control, made the admission,
according to Washington advices
to the "Wall Street
OPA- has made it

Journal," that
impossible for

manufacturers/ to

some

make

a

said

$1,729,000,000 total
pended/ $1,031,000,000

At the. sahie tinie Price Admin¬ -foods,

istrator

Office

the

that

far

so

of
ex¬

for

went

including; fats Zand oils;
$273,000,000 for clothing, textiles
and
footwear;
$105,000,000
for
fuel, petroleum and allied prod¬
ucts; $61,000,000 for medical sup¬
plies; $42,000,000 for communica¬
tion
and
transportation equip¬
ment;- $33,000,000 for agricultural
supplies
and
equipment;
and
$184,000,000 for other goods, cash
and services including
$92,000,000
;

prof it/'-"Speaking of publicsehti-;
ment recorded during the. poll on
this point; showing that' a ma¬
jority of those queried - were of in cash contributions to UNRRA.
the opinion that many manufac¬
.."Although relief -supplies fur¬
turers -Could not* operate -profits nished by the Army amounted to
ably, Mr. Porter continued: "There $1,100,000,000 and accounted

whose death
in

on

issue of

our

In Associated

May 28 wad notecl
May 30, page-2922.

Press

advices from

Richmond May 30, it
The
next

appointment

general

stated:

was

is

election

until ~tlKJ

Novem¬

in

ber. /

Governor Tuck said it/Wasi
unconditional, but it is expected

that the

Senator will not seek

new

re-election.
old

He

will be 77'years
July 3 and had already an¬

on

nounced

his

House.

retirement from

*

<//{'

.

This would leave

an

the

;?'•

•

field

open

among a half dozen or more pro¬

./

spective candidates.
Senator

Glass's

term

.through 1948.-

.

extends

/rt< :

,

'*

Final tributes to the late. Sena¬
question but that for more, than 60 % of the total
these people are right. Prices can¬ furnished* the Clearing Office said tor Glass were paid at Lynchburg
not be set high enough to permit that
Army shipments are now on May 30, when Secretary al
ended except to occupied areas. State James F. Byrnes, members
Government's entire subsidy pro¬ every * manufacturer, /ho: matter
of the Senate
For the quarter ended Dec.
and HouseY GovRow* inefficient, to make profits
31,
gram, except housing, to $1.1 bil¬
without
an
unconscionable - in¬ *1945, UNRRA shipments predom¬ Tuck, leading Virginia officials
lion and end the subsidy

is of

course

no

,

which reached him with the pro^visions passed by the House. The
tetter ^continued; Y
~

/' VI earnestly repeat my earlier
request that the Congress quickly
^re-enact .the;. stabilization
laws
without amendments that would

jeopardize economic stability.

-

*K. "I ask, too, that as President I
do.not be handicapped by. amend"ments destroying my authority to
Vast

responsibility

for

effective
co-ordinated administration of the

program

by May 1,

1947, except fornom-

crease in

the cost of living and set¬

ting in motion of

infla¬
V 6. Extend subsidies for non-fer¬ tion. Furthermore, under normal
competition,/ business hardships
rous metals—copper* lead and zinc
*v • 'Y7 • •
—and rubber to June 30, 1947. The always existed "
amendment earmarks $100" million
i'.KiiJw'.t V i
Iof the $1.1 billion for payments
for these metals#
Freezing
: *"
R^ittttved!
7. Forbid the O.P.A, to maintain
Over Licensed Tirade^Areai7
ferrous metals and rubber.

;

•,

runaway

,

■

■

Confrolf

-

.

in

those

departments and
agencies of the Government which

quantity

or

ator

;

Wagner,

the

"Times"

percentage quotas on

add

amendment to the pending
bill permitting the Office of Price
Administration to4. control com¬
an

mercial rents in particularly seri¬
areas, on the ground that such
controls would offer business.men
ous

"the protection of stable costs and

;hid

whole

the

irma;
7The
ments

stabilization

pro-

■
/
.
.
' ..
following. are the amend¬
,

(

written- into

•committee's bill

on

the

Senate

the day it fi-

would

apply particu¬
larly to nylon hosiery.
. T

^
the courts wider dis¬

Allow

91.

re¬

ported, asking that the committee

This

sales.

cretion in alministering fines for
price control violations. ; • - /
It

stated

was

that the.commit¬

tee had
ate

agreed to let the full Sen¬
bring its subsidy appropria¬

tions

and

meat-dairy

decontrol

amendments into conformity. The
$1.1 billion for subsidies Was voted

prior

to

approval of the meatdairy decontrol provisions/ which
will

still further reduction

allow

in

subsidy money if the decontrol
amendments' survive.- • •
"
""*

'bally reported the measure/out,
Sen. Taft indicated that he will
raccording to advices from Wash¬ press for Senate
approval Of his
ington bureau of "The Wall Street cost
plus amendment," despite its
.Journal."
/ defeat in the comniittee' by a tie
1. The Housed Crawford amend¬

/

ment

forbids" cost

♦dealers in such

consumer

by

durable

automobiles, refrigerate
and "washing machines,

/goods
•org

absorption

as

-2; Art amendment by Sen. Ful-

i

rbright: (D., Ark.) banning cost ab¬
sorption, by
.'farm
machinery
"wholesalers and retailers.
By Sen. Bankhead

(D., Ala.)
•requiring the O.P.A. to allow the
•cotton and woolen industries prof¬
its equal to the 1939-41 average.

By Sen. Bankhead providing
?5% incentive price increases for
4.

•cotton

manufacturers

after

their

-production exceeds the peak year
'between •• 1936^45// AnO.P.A.

spokesman said-1942 was the peak
■•period. ;'//Y/ /;Y Y/ Y ///.':/.
7 5.

By Senator Capehart
(R.,
rind.) which- in effect would re¬

quire a one-half cent per* pound
-price increase for shortening.
6.

By Sen. Hickenlooper (R.,
Iowa), which will reauire the dis¬
*

missal

of

treble

damage

suits

against several work glove manu¬
facturers.

These include Indiana¬

and Wells Lamont Glove companies./7 ■ /
polis, Good Luck




This amendment Would re¬

vote;

quire; the O.P.A. to allow:
facturers

>

and

processors

margins
enced

tober

manu¬

profit
experi¬

equal ; to those
during a base period* Oc¬

1

.

to

15, 1941,;

Evidencing
mise" in

a

YY;:!

-

I

of

Subsidies,-

Paul Porter/ OPA chief,' told the
committee on the'last day of the

hearings that

a 25% cut would be
On May 22/ the As¬

acceptable.

sociated Press reported, a "motion
offered by Senator Capehart to
end -all

price subsidies
of food next July 1 was defeated,
11 to 7, by the committee. -Mr.
Porter also testified on May 10 re¬
garding delay m the OPA pro¬
gram for decontroling price ceil¬
ings, which he-blamed on the soft
coal, .strike.
As an instance, he
consumer

,

cited the need to hold petroleum

prices under control for a further
period beyond June, when it had
been

planned to, release them, be¬

cause

demand

substitute
caused

a

for

for
coal

fuel

oil

a

would.-have

100% price rise.

Referring

as

'A

This area includes the other

area,

American

Reoublics, the British
Commonwealth
ofZNations, the
tJ;S.S.R-./ahd certaih bf the over¬
seas

gium

possessions of France, Bel¬
and the • Netherlands; The

Departments advices May 30 fur¬
ther "said:.
' '
/;/ /• z'/: one

of the effects

?

particularly to the
provision to abolish price controls

of

today's
action is to unblock property be¬
longing to most, residents of Hong
Kong, British Malaya, the Belgian
Congo, the Netherlands West In¬
dies; French Equatorial Africa and
certain

other
The

areas.

-

formerly, blocked

action

thus /supple¬

ments that taken last December 7

through the issuance of General
License No./' 94 which licensed
current/ transactions with these
not

areas /

blocked

as

involving

property

of that date.

•

The ,-$2,700,000,000
for

UNRRA

count for the bulk

total

will

ac¬

of* the overall

U. S. foreign relief program.
*

"Under

present plans UNRRA
scheduled to terminate its ac¬

is

.

special

restrictions

and British Malaya
imposed at the tirhe of the Japan¬
.

an

estimated $700,000,000 in

UNRRA -supplies shipped by all
nations through Dec. 31, 1945, the
United States provided $467,000,000

in

addition

to

$92,000,000 in
cash .and $3,000,000 in services.
Eighty percent of the $467,000,000

benefited by today's action are (a)
Proclaimed List Nationals,- (b)
citizens

persons,

who,-on October-5, 1945,

were

in

other

than

countries

then

members

of

blocked
the

erally licensed trade

area,

legal entities owned

or

gen¬

and (d)

controlled

by.persons specified in (a), (b),
or
(c). In this connection, Treas¬
ury officials called attention to
the fact that the new license does
not waive the provisions of Gen¬
eral

Ruling No. HA."

tribute

the

to

contained

in

late

Senator

messagq •' h}
Mrs. Carter

a

Glass in which the President

the.

death

of

her

said

husband

'/brings

to me the sorrow,;, thai
with the loss of a beloved

comes

personal friend." Associated Press
advices from Washington further
quoted the President

/ "A link

follows:

as

with the Old South is

broken in the passing of your dis¬
was shipped to Greece, Yu¬
tinguished
husband."
Senator
goslavia, Poland/ and Czechoslo¬
Glass was
not
only the older!;
vakia and-large shipments were
member of the Senate, but he was
also made to the U.S.S.R. and to
the "last
surviving
member,-in
Italy; the Clearing Office said. In either branch of the
Congress who
the future, large UNRRA ship¬
was born in the
ante-bellun^ days..
ments
are
scheduled
to
go
to To the
£nd he glorified in the titla
China and Italy.
■/>••'
of.

"Cotton is

now

being shipped to

Japan
under / Government
ar¬
rangements whereby about twothirds of fhe resulting textiles are

exported to other distressed

areas

of the Far East and one-third

tained for domestic

use

in Japan.

Proceeds from the sale of the tex¬

tiles will be used to pay for the
cotton

raw

advanced

from

Com¬

mercial Credit Corporation stock¬

piles! Thus the transaction will be
carried out at no

net Cost

'Unreconstructed Rebel/,

ferred
sor.

•;

;;

to the

■

as

notable

the field
no

fU

i

"Senator / Glass'

was

con¬

him by my predeces¬

upon

:M :Y YYY;:Z V - 7/>':■ *,''■ /•■:

as

public
it

"i"

•:

•

services

long. Iiv

was

of banking and finances
of either house had

re¬

member

studied

deeply than he, or
superior equip¬

more

brought

more

a

ment to the work of

fiscal

molding

policy.

/ "His

death
that

sorrow

our

Y/.Y/r/Y
brings

to

.

thet

me

with the los;i

comes

of a beloved

personal friends Mrs^
Truman joins me in this assurance

United States Government."

of heartfelt

sympathy."

■

Czechs Get Credit

Buy U. S, Surplus

of

Czechoslovakia

for

chase of U.-S. Surplus*

the

War

pur¬

prop¬

erty in" Edrope/Foreign Liquida¬
tion

Commissioner

McCabe announced

Thomas

;

on

B.

June 5.

subjects, of Germany,
and Japan who since December
Mr. 'McCabe said this is another
7,
1941, have been/in enemy or in a series of credit arrangements
to foreign nations .with a limited
enemy-occupied t e r r i t p"r y, (c)
or

A
was

total

To

"The' principal persons, in the
generally licensed trade area not

'

that

shortly thereafter/ /

"Of

occupation; ("by - Public Cir¬
16) were .also
removed / thus,, restoring
,these f/lA" dollar credit arrangement for
areas
to ; their Z pre-occupation a /maximum of. $.50,000,000 has
status. Z/
I/Z -* been signed with the Government
ese.-

culars Nos.-lO and

Senator

near

areas

v
on

hilltop a1»
Glass'; farm
Lynchburg, for th<a
funeral service.;
/'
estate

President Truman to

■

"The

&nd others crowded the

Montview,

tivities in Europe at the end of
calendar year 1946 'and in other

^'Treasury 'officials pointed out
that

Y Hong: Kong

desire td compro¬

the 'matter

son

;

authorized

■

Secretary of the Treasury Vin¬
on -May
30 issued *• General
Xiicense ffo;;54A removing the re/
I believe can best carry out the :
8. Place various classes of hotels
maining freezing control restric¬
jn separate, independent catego¬
stabilization policies."
tions 'over practically all persons
\ Economic Stabilization Director ries for purposes of considering
in. the generally/ licensed trade
Chester Bowles also wrote to Sen¬ rental price adjustments. ■ -/
laws

inated.

sunply of dollars in order to per¬
to buy overseas surplus

mit" them

for relief and reconstruction
pur¬
poses.

•

■/';

:

Export-Import Bank to

chase

raw

cotton

in

the

our-

U.

S.

Reference was made to this action
in the "Chronicle" of June
6, page

3060.

Manager of

Calif. Bankers Ass'n
'

Oscar

R.

Mennenga

;

who

wo

Assistant Manager of the Califor¬
nia

Bankers Association,

cently been

Manager,

/ has

re«*

appointed Executives

succeeding

Laudet

W.

Hodges, who resigned this post
June 1.

>/■/, Z/Z'""'.'

"Mr.

from

/

Mennenga,"

Francisco

taken,

! 7

The Czech government recently
received a $20,000,000 loan from
the

Becomes

"was

this

of

Reserve

Franciso

for

a

•...

June

information

associated

Federal

oz1

■'

said the San

"Chronicle"

which

,

Bank

number

r/
ij

with

tho

of

San

of. yeary,

before taking a position with tha

Association, and also did special
work with the office of

management."

production

"5

y'r\T4*:'

'

••

<

)

y

'•( '•

whenever

The Financial Situation
•,v■,

of what he
that

the

worth

-

-■r,ont5n,,o'J 'rom first page)

•,

actually got, and

difference

not

was

tithe of the ccst to his

a

same or
similar [assertions have been

frequently made concerning

mahy^of the other thousand
and

which

from

strikes

one

the American
'

public has been
suffering during the past six
months'or

1

more.

'

'

;

,

Much, of this may be true,
indeed'all of it may well be

X ;y,

ito any.

;

v

re-

wouid

man,

however,

assort?

"

that

be

a

who

the

obfcaihed by the

tute very real obstacles. Some
of

would

in

more

power

and

These

what Is

notions

evidently

granted too many and
sweeping rights to
labor unions, and we should

trou-

our

around

better understand the fact if

many

abuses

the

tPures

with

a

vehement

of

have

unions

grown

accompany

asser-

not out of special leg¬
islation, but out of failure of

sort

local authorities to make any

soffie

of

"sacred

the authorities

no

carded.

were

Relief

ute

years.'

,'KTi^Lost Its Public"
-

a

«

+i:

i

u

niibhfW.Or
public >!or

u

-

m

x

1
part of

n

law

for
•?

great

a

many

.

Can there really be

-x

"1

some-

thing in the basic nature of
d°i
d economic relation-

a large
it,
we"£&huonly judge by what
uu
u
•
tuLJi
i;
shlPs Which bestows certain
evidepfib there is and by what fri ^ts on
elements in
+

+

JU

x

to be the best

appear*

judg-;th|

°b.serYer"n

lation

and

them to others?

denies

To ask such

!'•« question is about the equiv•'

TP*"/'"

iwould dearly be quite nonanrJ '^nFw'rv^mqm!16 Press, sensical to affirm any such
whatnrft'thing. It may or may not be
what,are now regarded as dislpft

m

passionate commentators. Apparently, friend and foe of
labor, alike

are

agreed

that
elections in

recentf political

several, parts of the country
have

"qliite

clearly indicated

that voters have about
enough
of, at least, large sections of
labor

orga
mgs<

'

J

;

f,

-WW!
+*

and

its

do-

.

it ^

& fh^ ij; Current

tions about the

nodependence of

labor, upon public sentiment

xu1 the?e chanSes

wise\s

a

economic

m/tter
policy

syocial

of

or

endow

to

"°me el™ts in the, POP^"
tloni sucb I°r example as the
earn?r or.
arm.e^'

™th sP,e"al '"g.ht,s de"ied
?th"S> but certainly nature
ha®, the "0^hlng
and d°n®wisdom of the SOr!'
any

such

endowment must rest in the
IIast analysis upon the practical result of it.
;!

-

(

Time for Reconciliation

June 5 by Edward

child

the

United

States," Mr. Carter said. "This is
a

realistic and undeniable demon¬

stration

of

American

friendship

for the heroic people of the Soviet

Union. We

are

confident that, the

American people will continue in
their
time
this

recognition of Soviet war¬
sacrifices

year's

by subscribing to

$25,000,000

campaign

goal of Russian Relief." The initial

shipment

was

on

the

high

seas

only a month after Russian Relief
was

founded in September, 1941,

by a group of American citizens,
the President of the relief agency

reported.
'

All shipments of

If such is the

in

Russian Relief

then the supplies it is stated have been
r e
fM'.S 1 themselves more question of the degree of the made either in Soviet bottoms or
promptly^ and more measur-1 endowment and the terms and in ships chartered by the Soviet
ably in the results obdurate' conditions under which it is
government, at no cost to the re¬
and arrogant labor unions are made are
certainly quite legit- lief agency. Tonnage lost at sea
able-cto
obtain
by tactics imate questions of study, dis- during the war was less than Vi
which are now supposed to be cussion
and
re-appraisal of 1% of all cargo.
:




case,

As

they might deserve
the people would

result

a

-

...

* -

-

which

that

enforcement

law

and Dade

County

Miami

in

was so

shot full

of technicalities that law breakers

and accused persons benefited at
pointed out, we the expense of law enforcement.
We called upon the judges to rem¬
weigh the impact of the
—Words
against the protection edy this situation. They took um¬
given by the principles of the brage at our position, called us
; First Amendment, as adopted by into court, and penalized us for
:
the Fourteenth, to public com- having the temerity to speak." '
ment on pending court cases.

"As

we

have

must

,

the

danger

under this record to fair

judicial

We

conclude

ness

Society for Russian Relief,
Inc., in issuing a report on the
shipping activities of the relief
agency. The report, which covers
the period from October,
1941,
when the first
shipment of 22
cases of medical supplies left, to
April 30, 1946, lists 1,354 individ¬
ual shipments totalling 51,594 tons
of cargo. Each ton shipped is a
"long ton," weighing 2,240 pounds.
This huge total, equivalent to
115,570,560 pounds, nearly equals
a
contribution of one pound of
relief supplies from every man,
and

'

that

administration has not the clear¬

can

it.

"

:

C. Carter, President of the Ameri¬

woman

were

Justice

•

Shipments of Russian Relief
supplies to the Soviet Union have
passed the 50,000 ton mark, it was
on

Vigor¬

opinions

that of the unanimous court,
Reed asserted:

was

Supplies to

announced

actions.

Concluding his opinion,

Soviet 50,000 Tons

,

judges'

concurring

tice."

...

.

the

,

alternative

but to

performed by business
montljs past and has gained men
iarge or small (other
large concessions as a result. than
farmers> at all eVents),
What is more, it is still doing
they are labeled "restraints of
^so and, is still obtaining con-! trade ,. "conspiracies in re¬
cessions to which it is not
straint o£ trade>» or other ex.
really, entitled
at least if
pressions of similar import,
competitive production per- |and as such have been unlaw.
forniance js the measure of
fui both at common and statJ ust.compensation.;

the

,

.

for

overthrown by

paper

v ■;

require law observance
part of mucb careful
thought) the of the union, as it does of all
LetkUS be
"ri§ht t0 strike" as something others, then we shall begin to
ourselyes about alL this. In inherent in the cosmos, as it see results -r and that, day
the ,parlance of . the street,
were? yet, what is a strike? would arrive all Ithe quicker
if foolish slogans were dis¬
•wu*,aS bee"„thr°^ng
i If the same or similar acts
better

was

tended, through counsel, that the Court's unanimous decision which
merely had criticized legal upheld the right of newspapers to
procedures in trying to eliminate comment on
the
conduct of a
gambling and other objectionable judge should forever end the harconditions in the county. * .
assments to which newspapers and
Justice Reed said, according to their editors have been subjected
the Associated Press, that courts by autocratic judges.
:'
must have power to protect the
/
"Under the contempt of court
interests of persons and litigants power which they assumed, selffrom "unseemly efforts to pervert seeking
judges
long have at¬
judicial action," adding: "In the tempted to silence the press when¬
border-line instances where it is ever they were annoyed by what
difficult to say on which side the was said of them regardless of the
alleged offense Jails, we think the truth or falsity of the statement.
specific freedom of' public com¬
"By so doing they assumed unto
ment
should
weigh ; heavily themselves a right in excess of
against a possible tendency to in¬ that enjoyed by either the legis¬
fluence pending cases. Freedom lative or executive branches of
of discussion should be given the our
Government, each of which
widest range compatible with the has equal rights and dignity with
essential requirement of the fair the judiciary.
v
and orderly administration of jus¬
"In this case The Herald charged

too

Strike?

a

tion of his belief in

t0 ™lons

the

court of the Miami "Herald" and

Pennekamp,

democracy..^,• *•;
?'!^Thh: iUhited States Supreme

We

have

that,^ in light of what was (quite probably without hav|gomg ,pn around him, discre- ^ gi£en theJ matter very
was

D.

ald" and Mr. Pennekamp had con¬

like.

right" to strike? effort to enforce what every
mid to individual workmen.
who despite sall the m.will one admits is the law of the
Who can doubt that executive
When public opinion
iabor unjons have earned in land.
iatoexecutive- during the
recent month
does not
changes sufficiently and in¬
JLaSLfelf Ftl f coln,;luded pear at least to ; consider telligently enough to leave
tion.

John

Justices Murphy, Rutledge and Frankfurter. "The Her¬

:)anti-injunction laws,

are

his stric-

pajns £o

prplpnged work stoppages are,
of-course, costly to business

Ff.

editor,

written by

the

bor today does not take great

^r^n?i?r0irne ^
the
jjjihd to the other.

The conviction for contempt of
associate

ously

slogans about the "divine
rights" of wage earners did
Take the matter of strikes not get in the way. 'AAAA.!
But
the
most
themselves. What critic of laflagrant

that

staged

,

had

foolish

°bvious directions.

the. absence of the display Wfe:

[Monopolistic

<'

its

be deprived of Jhat full informa¬
tion which is the foundation of

and the

kles, and are in large degree
responsible for our failures m

any,

any, of these instances could have been had

•the wumons

Supreme Court Reverses Press Contempt Case

fect"

far

[or almost

•

these

fundamental to all

concessions
men

circumstances

of

Sanda of the New Deal consti-

bold

cif a''Similar sort and their

the

Thursday, June 13, 1946

Act, fundamental amendment
pf the anti-trust laws, restudy

public , mind by the propa-

and all other conflicts

su
■-..hIHaJ..pe
m J

in

^'

seem'to suggest it; In general,
the unions enjoy these special

truef'qf any individual strike
considered without reference certain fetishes fixed in the

•

.';*r<'V^v

privileges by virtue of anti¬ United States Supreme Court on June 3, the Associated Press
reported
definitely beyond the pale so trust
laws,
anti-injunction from Washington on the same day. The conviction was obtained
far as public sentiment is conmore than a year ago because of the
publication of two editorials
laws, and such sweeping spe¬
cerned? The answer is proband a cartoon criticizing Florida judicial
procedures which the Dade
cial-favor acts as the Wagner
County (Fla.) ,< Circuit1 Court<8>
ably to be found in part at labor law.
\ It would appear charged interfered with the ad¬ Herald"
for
nineteen
months
least in the chains the public
therefore that if public think¬ ministration of justice and or¬ against what they considered "ah
has fastened upon its own
dered the paper fined $1,000 and attempt to use the
contempt power
ing had basically changed as Mr.
Pennekamp $250. The convic¬ to stifle criticism of the courts,"
wrists as regards labor, and a
lack of understanding that regards the position of labor tions were upheld by the Florida had finally been successful. He
unions, the logical line of ac¬ Supreme .Court.
•
^ declared, the Associated Press re¬
these shackles, must be strick- tion would
The Supreme Court's 7 to 0 de¬ ported on June
be, not some has¬
3, from Miami,
en off and the resulting freecision, written by Justice Reed Fla.:
tily devised patch added to (Justice Jackson not
"If judges had the power they
dom definitely put to work
participat¬
the fabric of labor law, but a
ing) declared that "free discus¬ claimed in this case to fine or im-.
before the mad march of labor very careful reconsideration sion of the problems of
society is prison anyone whose comment
leaders can be checked. In- of statutes already upon the a cardinal principle of American¬ displeased them, few would dare
ism," and that the press comment to criticize the courts and judges,
directly, if not quite directly, books—repeal of the Wagner in
question "could not directly af¬ however much

unlpmmembers. The
•

,/■ /■ 4

'i,;-

THE COMMERCIAL & FINANCIAL CHRONICLE

3264

and

immediacy necessary

%, to

Goods

Shipped by
Mfrs. Up in April

close the door of permissible
public comment. i: When
that
During
April
United
States
door is closed, it closes all dodrs manufacturers
shipped
goods
behind it.
'♦
1
^
valued at $9,700,000,000, 3% more
f
than during March, the Office of
^'Reversed." '
v" ■
-v In
his separate opinion Justice Business Economics, Department
Murphy, according to the Associ¬ of Commerce, said on June 7.
ated Press, declared that if the
The automobile
industry, the
court were to sanction the judg¬
report continued; made the most
ment
of
the
Florida
Supreme
striking gain, boosting April dol¬
Court "we would be approving in lar value of
shipments 40% over
effect an unwarranted restriction those for March and
increasing
upon the freedom of the press."
passenger
car
production; twoJustice
Frankfurter
said, the thirds.
.

-

'

•

(

-

k ,,
Ali major industries contributed
to the increase except iron and
steel, food and apparel groups
society's sake may 'assume that
whose April shipments were be¬
they are not'."
low those for March.. '
Justice Rutledge's opinion stated
April shipments of the nondur¬
that "if every newspaper which
able goods industries were slightly
prints
critical
comment
about
.

;

advices added: "Weak char¬

same

ought not to be judges, and
the scope allowed to the press for
acters

.

lower than those for March, but
courts without justifiable basis in
in the durable goods field ship¬
fact, or withholds the full truth in
ments were up about 10%;
Ma¬
reporting their proceedings or de¬
cisions, or even goes farther and chinery industries increased ship¬
ments about
20%
for April as
misstates what they have done,
compared with March, while other
were subject on these accounts to
durable goodtf industries registered
punishment for contempt, there
would be few not frequently in¬ gains ranging from 5 to 10%.
Manufacturers' inventories fell
volved in such proceedings."

of such situ¬ to $16,500,000,000 at the end. of
carelessness, April, $200,000,000 below the endoften induced by the haste with
of-March level. Most of the de¬
which news is gathered and pub¬
cline occurred in the nondurable
He added that part

ations

are

"due

lished."

to

V'v

great deal of it must be
attributed, in candor, to ignorance
which frequently, is not at all
blameworthy," he went on. "For
"But

a

goods industries.

Only the textile

increased

industry

its

inventory

holdings during April. Food proc¬

essors
reported the sharpest in¬
conducted by men
ventory decline.
laymen to the law.:.
In the durable goods field all
The law, as lawyers know, is full
industries except iron and steel,
of perplexities."

newspapers are

who

^

are

In Miami, Mr. Pennekamp's re¬ nonferrous metals, and stone, clay

action to the Supreme Court's far-

and

reaching decision was one of deep
satisfaction that the fight con¬

creased

ducted by

glass

himself and "The Miami April

as

products reported

inventory

holdings

compared with March.

in¬
for
;

Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4498

:

\

■

f

.■«

■

t

,

'

'

■

l_£_i

•

' ?

Vinson Named Chief Justice; Snyder to
Profits of U. S. Corps.
/
Head Treasury; Sullivan in Navy Post Reported by Com. Dept.
President Truman's nominee for the post of Chief Justice of the
United States, to succeed the late Harlan Fiske Stone, is Fred M.

w

Vinson, of Kentucky, at present Secretary of the /Treasury. Named
to succeed Mr. Vinson,as
Treasury head is John W. Snyder, now
Director of War Mobilization

and

nominations from Washington

on

In reporting the

Reconversion.

June 6, the Associated Press added

that the President had said that^
the OWMR would be discontin¬ able contribution to the achieve¬

ued, which would obviate the
pointment of

a

ap¬

Mr.

to

successor

ment of

common

our

victory.

"Inspired by his example, and

Snyder. Y,;
!4

Y■"
Y
Y'; ■ ■■■ Y :V; in £ accordance with the instruc¬
nominated the same day tions which I have received from

Also

by Mr. Truman

Government, I shall make it
livan, now Assistant Secretary of my constant endeavor to maintain
the Navy, to be
Undersecretary of and to fortify these good relations,
John L. Sul¬

was

the department.
;
It is
generally

in the firm belief that by so doing

the
Washington advices stated,
Mr.
Vinson's
appointment

same

that
will

be

conceded,

confirmed

by the Senate
Most Senators ex¬

without delay.

my

fulfilling my high duty.
I feel sure, Mr. President, that for
this purpose I may count upon full
encouragement
and
help
from
yourself and the members of your

I shall be

the

low

,:,Uryposto.;:/V;;.r:V
,r: Although Mr. Snyder's
appoint¬

bitter

and

its Board of Directors has

Charles

Ritchie

has

elected

F. Jennings,

Frederic A.
Ritchie and Harry F. J. Schroeder Assistant Comptrollers.
Mr.
been

the

with

peared in the April issue of Sur¬

was

vey

of Current Business, official
publication of the Department of

the

Commerce.

Mr.

1944, has been in the bank's em¬
ploy since 1936, and Mr. Jennings,

member

the

Derrickson

National

is

a

1926;

who

now

Division, Office of Business Eco¬

tain

in

nomics. The advices from the De¬

in 1931.

partment said:
Corporate profits

that

,

taxes

estimated by the Department
Commerce
at $24,900,000,000
1943

and

$24,100,000,000

for

holds the rank

of

Cap¬

the

Army, was employed
The bank also announced

Morris

Auditor.

noted that the 1943-

was

who

A.

Engleman,

who

completed three years pf service
in the United States Navy in Feb¬
ruary, has been made an Assistant

were

1944. It

Schroeder,

released from the Army with
rank of Lieutenant in April,

Income

before

Mr.

ployee.

David

task of recasting a broken world.
But it is my belief and my faith

thusiastic response, the Associated
Press reported, there was no in¬

that the spirit which

putation of emergency amortiza¬
tion deductions occasioned by the

President in

dication

crown

end of the war.

ment at

ment did not receive the

that

it

same

would

en¬

into

run

serious confirmation difficulties.
The former St. Louis banker has
been one of the President's closest
advisers
other

economic,

on

matters,

and

pointment will

labor

and

new

ap¬

his

give him

now

a

seat in the Cabinet.

struggles

inspired our
the battlefield will
common
efforts to

on

our

a solid and lasting
which, as never be¬
fore, the future happiness of pur

bring

about

peace,

upon

the

except

same

for

the

Auditor* London office.

the

law

for

any

amortization

period

facility
two countries depends.
*
' •
may be shortened from the
"May T conclude by saying that original five-year period to the
the
honor
of
representing His period between the completion of
Majesty
in
Washington means the facility and the end of the
much to me? Since my

emergency.

pointed him to the United States
Circuit Court

ished associations and I welcome

would be recomputed

Mr.

Vinson,

56 years old, has
long served in public office. For
fourteen years a member of Con¬
he left the House in

gress,
when

President

District

of

of

1938

Roosevelt

ap¬

Appeals for the

fColumbia.

Subse¬
quently he was Reconversion Di¬
rector.- Last July President Tru¬
him to succeed Henry

man named

Moreenthau,

the present

opportunity to broaden
my
knowledge
of
your
great
country and to draw upon the
wealth of experience that it has to
offer."

*

:
Secretary of
President Truman in reply had
the Treasury.
1
Y
The post of Undersecretary of the following to say in part:
the „Navyr.ta which Mr. Sullivan Y-Y'I am sure you will be a worthy
has been* named, is the one; to successor to -your-distinguished

Jr.,

as

,

.

,

-

,

which the President originally ap¬
pointed Edwin W. Pauley. whose
nomination, as stated by the As
sociated

Press,

withdrawn
when it led to governmental con¬
troversy. *
Y
A
was

colleague. Lord Halifax; 1 who did
much

so

during

Washington
bonds

of

his

in

sojourn

strengthen

to

the

friendship between

our

declared ended
Sept. 29, 1945. The Department of
emergency ; was

porate

joint

the

in

efforts

face

of

a

that

estimated

amortization

90%

of

the

facilities

the

In

-

1943, the peak year of war¬
corporate earnings; profits

before

taxes

were

to

found

be

t

President

ing

Truman, when mak¬
his recent appoint¬

known

told his p^ess conference
that he had succeeded in persuad¬
ments.

ing James Forrestal. who had. in¬
tended
main

earJv resignation, to

an

indefinitely
of the Navy.
on

as

re¬

Secretary

common

The
the

new

traditional

States.

of

Eck

Inver-

arrived

he made a courtesy call on Secre¬

tary of State Byrnes, in advance
of the presentation of his creden¬
tials to President Truman
5.

The

new

on

June

Envoy succeeds the

wartime Ambassador, Lord

Pledges of cooperation were ex¬

the

President

and Lord Inverchapel,

the latter,

between

when

I

tell

how

you

much

we

close association.

our

are

no

stranger

you are good enough
previous associations
most pleasant terms.
I am very glad that you come to
us
now
in the highest capacity
which your sovereign can bestow.
Let me assure you that you may
always count on my full co-opera¬
tion and that of the agencies of

to

to

refer

here

in

were

in

after

taxes

were

higher.

the

as

high

'

as

profits

1929,- but

they

only one fifth

".

..

..During the period 1929. through
1943, Federal and State income and
excess profits taxes increased 10fold, and taxes as a percentage of

profits

from

advanced

in

15%

1929 to 24% in 1939 and to a war¬

time high of

60% in 1943.
Y Profits before taxes for all in¬
dustries

this

to

country, and

$22,700,000,000

averaged

during the war years 1942-45. or
more than four times the $5,300,000,000 average for the peace¬
time
ment

period 1936-1939, the Depart¬
of Commerce said. Despite

the

high level of taxes during the
war, profits after taxes were also
levels.

record

at

The

war-time

average of profits after taxes for
all industries was $9,400,000,000

this Government in fulfilling your

two-and-a-half times the average

high duty."

peace-time

his

With

Hali¬

fax, who recently left for London.

changed

high objectives. I am sure that I
speak for the American people

"You

in
New York on May 29 aboard the
Queen Mary and left for Washing¬
ton the same evening. On May 31
chapel

Loch

Lord

friendship

will
do
to assist in achieving these

value

British Ambassador to

United

dif¬

now

the world and happiness to man¬
kind. I
am
confident
that our
much

British Ambassador

are

ferent, they continue to be of the
first magnitude and to require the
best efforts of all tQ bring peace to

.

Truman Welcomes New

tasks

our

times

two-and-a-half

enemy.

"While

n

arrival

New

in

York

earnings

for

of

$3,900,-

000.000.

"

:

engaged

(total

dent: Mr. Edward C. Maher of the

bank's

Foreign

Messrs.

George

Department and
M. Bragalini,, A.

Herbert Sandler and George
C.
Wolf, all of whom are located at
branch offices of the bqnkJ
YMYYY; Y-Yi'-'V*".; i
Y* Y'v

Approval was given on .May 29
by the New York State Banking
Department to plans of the Royal
Industrial Bank, New York, N. Y.
to increase the capital stock of the
bank from

$275,000, consisting of

27,500 shares of the

oar

value of

$10 each, to $385,000, consisting
of 38,500 shares ^at the same par
value..

v.

-

j

.

: "■'■>

■

•

;

YYSY. Y Y
r
L. Emory Boyden has been ap¬
pointed Assistant Vice President
of The Manhattan Savings Bank,

City, Willard K.
Denton, President of the bank an-*
nounced
recently: Mr.
Boyden,
who joined
continue as
bank's

the bank in 1924, will
senior

officer

of

the

Rockefeller Center Office.

of the Lafayette Na¬

Directors

tional

Bank

of

New

Brooklyn,

capital from $850,000 to
$1,000,000 through issuance of ad¬
ditional shares of stock at the par
value of $20 per share, it was an¬
nounced on June 10 by Walter
Jeffreys Carlin, Chairman of the
.

Under the board's proposal

the

shares will'be Offered

present ^shareholders

to

-

on

ity Council, and granted

they increased

view

part:

which

-

!,

"My distinguished predecessor,

Lord Halifax, has won the praise
of His Majesty's Government for

the devotion with which he labored
to draw

have

The

still closer the ties that

long united
success

of

and fostered as
warm

response

two nations.

efforts,

they

were

aided

by the

which they evoked

conducted

press

in

vein. The Ambassador,

a

light

the

1945,

Office,

peerage

amounted

raised to the

Before

his

present
served

appointment

post
as

Moscow

Lord

British

since

his

to

Inverchapel

Ambassador

1942.

He

was

to

last

Third

he

now




period

to

in

peak

ments
than

less

was

the

net

than

half

of

war¬

dividend pay¬

$1,200,000,000: lower

$5,800,000,000

paid / in

YM:':'- Y;:'YYY'

1929.
The

special stockholders' meeting
June 25 to
the board's recommenda¬

has

been

vote

on

called

for

article

concludes

with

a

technical discussion of the revised

method, employed by the

Secretary of the Embassy

ment- of Commerce in

heads.

its

profits series.

Depart¬

working

up

$2^0jOQO: to

and

share

oilers,, also

aporove T the pro¬
by the dlr'dfctbrs to
reduce the par value of stockifrom
$100 to $20 per share, .therefore
changing the present 2;.W() ^'out¬
standing shares at $100 each to
10,000 shares at $20 each!, M u. ■

canity!,;>,in-

the

to

directors

the

of the
stockholders

5,000

shares

value.
y

the

dividend,

remaining,fjip,000

to

stockholders

for

proportion to the dumber

sale in
of

author¬

distribute

shares Mb
stock

a

as

shares

new

to

new

and to offer the

held

the^hbw

at

Y/.y Y..Y--

-

par

Y

i-.ra S'yy

.

The proposals which wqrem$ide

by the directors
v/hich

May

on

island

accepted by th^Stock¬

were

holders, also included thei<repayment of $150,000 in
capttajf^notes
held

now

by

the

Reconstruction
03

Corporation.

Dx-"

The

Northern

York State
29

to

N.

branch

a

■

Mills,

Y.;;;>:Y Y^YY-Y;

•;

authorization accpnYns

This

with

to

Ban&m&De-

partmeM was■; issued
tion

at

JeffersomvCounty,

the New York State

-

in£qbnhec-

the- purchase .(bassets

and

assumption of liabVMqa, .of
Peoples Bank o^ Evan- Majh, by
The

New^Yorlt -Trust

Northern-

Company.

:fiY

•

;

op

~~—SliyZl i.E- ?VY-;

■

The

j

Lincoln-Rocvert',K1f Trust

Company, of Rochester.'
Mr

called
the

last

redemrt'on
its

of

jinY. has

hnKAlpg. 1

preferre-t

^tock,

a

part of the fmancing/apMh^d by
the United States Govfrnment in

1934,

it

indite' 'hv the'
IMion^WjUnel,

was

Rochester "Times

its advices also stating:
At that t'me the

banldlArranged

with the Government for,"*3,500,-^
000 in capital notes wlfiW-s'nce

have been ro^ver+o-| ibtbMifO

oar

preferred. Currently ou^t^nding
are
20,000 shares of •

nreM^red.

ca11

means

$1,000,000

an

the
time
turn in their

holders,

bv

any

the

dividend

oiitRv

of

b^^kriiEtock-

after!oJ>ne< 1,

sharesr(-,pjci. re¬
normally ;'due

Aug.Mv^;.Y::;;u,::uY>^^;M:^nt)f(Y-; ;
Upon completion of thinjfiriancing sole capitalizat'on.Y Ytill - be
268,000 scares of enrYpcn. i The
$40,000 annua1 dividendf^fnnients
be

the current preMrred't^on will
available
for
qpimm o n

dividends.

»

<

.

f:

AtYtheh" ipeetm orivil£'MYe:;12,
the director* e« the ConntktTrust
Co., Whitp Plpms
William

Mr.

'lUp ^cc'nt^lf^igned

Vice-Pre*:dent

Trust

the staff of the New York Clear¬

in 1935

Co..;

N^qyj^ected
4

Butcher.? *\eeutive.
Exec

L.

Vice-Presfde^t.

Gersten,
Presi¬
dent of The Public National Bank
Chester

Banking Dept. oh May

open

Evans

as

E.

New YorklTHist

Company of Water town,' -Nl Y& re¬
ceived, authorization frormth&New

Y

1941-

payments

time

as

lustrious predecessor, made a not¬

war

dividend

profits after taxes. The 1945

Sir Archibald Clark Kerr.

to World War 1, when he served

il¬

the

net

only last January, prior to which

people during both your own ad¬
your

During

he

was

A

17

tion.

veteran

ministration and that of

the

1945.

in

Foreign

was

slowly thereafter

they reached $4,500,000,000

a

stationed in Washington just prior

of

until

of 40 years in the British

American

in

the "hearts

our

his

he

inter¬

from

made

on

Board.

addressing the President saying in

an

on

posal

ceive

according to the United Press, in

the

voted

may

shares held.

of

The

bank's

basis of three shares for each

members

the bank

of

$500,000.

York have voted ■ to" increase - the

in

1942;

tho^cap-

proposal to increase

a

ital

The
'

tions) declined from $4,400,000,000

to

to

York

New

of

gate to the United Nations Secur¬

to $4,200,000,000 in

the

Brorwrtrille

the

of

Trust Company, BronxviJl$,tN« Y.,
held on May 31,approval wasgiven

Company,

ing promotions
from
Assistant
Secretary to Assistant Vice-Presi

Alexander

payments

Trust

New York, announces the follow¬

additional

1941

stockholders

Finance

Manufacturers

dividends paid by corporation less
dividends received
by corpora¬

Cadogari, English dele¬

customers

foreign trade.

May 29 Lord Inverchapel was
greeted at the pier by an official
reception; party headed by Sir

dividend

Net

meetings-6f

special

a

Yto 0 cFl:

facilities

war-emergency

outside funds.
time:

.

At

cor¬

of

in

with a con¬
sequent lowering
of ? corporate
profits and taxesY
;
Corporate profits after taxes
reached record highs of $9,900,000,000 in 1943 and $9,800,000,000
in 1944, the Department of Com¬
merce ■ said." Corporate
savings
fromY941 through 1945 amounted
to $25,000,000,000 a sum that will
permit substantial volume of cap¬
ital expansion without resort to

our

two nations and to promote

For this purpose the

Commerce

the Foreign

Depart¬
Sterling National Bank &
Trust Company of New York, has
recently returned from an ex¬
tended business trip through
South America, during which he
visited the bank's correspondents
in the principal cities for the pur¬
pose of expanding existing rela¬
tionships and studying the pos¬
sibilities of broadening the bank's

war-emergency

early man¬
hood, when I served in Washing¬
ton under James Bryce, I have
been a; frequent visitor to this
country. I look forward to the
renewal of many old and cher¬

;

,

ized

Henry W. Drath, Assistant Vice

at

Benjamin^Gbrdon
at the Broadway and 24thJj>treet
Office were appointed Assistant
Cashiers. ;:YY:Y/^YYY '"V
'1
t-;Y Y '.YJfio 1 Jbn

increase, the stockholders

recom-

The article explains that under

the

^cpdrbnenf

Y eiso^iiei

<

Summers, an em¬
1926, was elected Y; Pertaining

since

.

1944 totals would have been about

Y-

.

.

Main Office and

bank

since

of

great war em¬
enflame the arcluous
a

Bankers Trust Company of New
announced on June 4 that

York

Gardner F. Derrickson which ap¬

for

when

'Hi

figure^ of $9,800,000,000, according to an article by

inevitably follow

re¬

time

a

Banks,
antesY
i£.

1944

of

.

1944, the

$9,100,'000,000, only 7% be¬

mated

famine and the tribulations which

his

over

important Treas-

at

here

come

from

,

ing disappointment
moval from the

"I

13%

of

Department of Commerce said on
April 25.
* 'J
Y; ;Y,Y ,
However, because of reduced
excess
profits tax payments,
profits after taxes came to an esti¬

administration,

/

Items About

ing
1945
made
profits before
taxes estimated at $20,900,000,000,

pressed surprise-at President Tru¬
man's choice, some even intimat¬

-

IMZl

corporations dur¬

United States

decline

3205

.

1

of

Ypntral

C*-^5-natLQ£)hio,

to

the ^^-'t'oh wifa County
and Trust Company of New York, Trust Co.' .TMl i*5 ^ pPpi'Yof
announced on June 6, the appoint¬ Williams CpV^h
M t^7|Dpadment of Major Herschel L. Horner uate Scho-1 of Bankmg ai Rutgers
University,
soah Y y,
as an Assistant Vice President. Mr.
He joire4 the Centra^Co.
Horner was for several years on
ing House
to

this

credit

accept

was

identified

activities

of

the

with

the

Me

busine

en¬

a^ipj'^eppg. its

s,
advertising,
and
relator- ^ogramfhFeven
years
ago
he- b^e ai ^pnior
yicerPresid er~n i c ' jbd'xfi^ltiqs

new

Guaranty

public

Trust Company of New York. He
also
is
a
certified Public- Ac-

icountant (N.'Y.VMr. Gersten also
announced that William J.

^

gaged chi'fy in

Association and prior

since +he~

(Continued "on

Shirley
■

■

•

pageY276)

/■ '-

.'IS flOi*

v

v

3266

THE COMMERCIAL & FINANCIAL
CHRONICLE

Industrial Activity in April Reported

Retail Prices Showed

By Federal Reserve Board

April Advances,

i

■

;

*

\

States Fairchild Index V*

1'

^Industrial output declined somewhat in April and the early
part of May owing to the coal strike" it was noted in the
summary
of general business and financial conditions in the United
States
based upon statistics for April and the first half of
May, and issued,
on May 27 by the Board of Governors of the Federal Reserve
System.

,

r

.

The Jioard went on to say that "employment in tne
economy as
whole, however, continued to ex-®-

pand,;ri April.
tail trade

maintained at

was

levels

ord

and

further."

Tose

The value of

rec

commodity prices.

increases

these

of

the

April and

1935-39

consumers'

was

in coal output after
April F and the resultant curtail¬
in operations in

tries

industries

following

settle¬

"Production

factures

as

a

of

durable

group

3%

rose

home furnishings. Women's ap¬
parel remained unchanged and in¬

as

Iron and steel production
declined about 6%; decreased out¬

to

production.
In May activity at
steel mills continued to decline as

but

a

—

increase

the

first time

in

on

-

to

months

ties^ included

—

r

Upheld the Office of Price
join a union.A Administration in a requirement
paragraph preceding the above, in that a
landlord
charging oveij
the paper quoted reported:
;
:
ceiling levels make restitution to
employees

Leaders

to

of

the' F.rst

Employes

of

the

National

Guild,

CIO

an

United

ad¬

Office

and

Professional
Workers y of
America union, have decided to
disband their local union and have
asked that charges of unfair labor

in

the

2.

Unanimously upheld a South
tax
on
premium pay*
by out-of-state in¬
surance companies.
The Pruden*
tial Insurance Company of Amer-f
ica contended that .his levy and
>

Carolina

ments received

taxes
were

;

on

fifteen

of

other

.unconstitutional

an

inters ate

commerce.

.'.,

"

3. Held unconstitutional &

19431

"Globe-Democrat" stated:
act by which, Congress withheld//
yThe Guild's officers; headed hy the salaries of three men criticized
its president, Edward F.
Holsteta, by the House Committee on Una
teller, wrote the following let-* American / Ac.ivities: then
headed,
ter
to
.

Conway and Joseph H.
by fornrer- Representative MartinLevy of New York City, national
Dies, Democrat of Texas.
'
vice president of the. CIO union:
The three -were Robert Morsa"In view of the overwhelming
Lovett, executive assistant to the/
vote against the union arid in fa¬
Governor of the Virgin Islands,
vor of the
.

.

until

bank at the recent elec¬

tion,

it

is

evident to

us

that

the

jmaj ority of. the employes of the
bank -do not want to be repre¬

and Goodwin B. Watson and Wil-v

liam ,E.

Dodd, Jr., of the Foreign

broadcast intelligence service o|;
the .Fed exa I Communicadons
Commission.
'
>

brassieres, men*s underwear; shirts sented by our organizatipn * *, *
and neckwear, hats,and caps, and and that ha
good would be accom¬
As a result of Mr. DiesTs activl*:
men's
clothing. Infants'
under- plished - by contesting the. results
ties a House appropriations 'siib»:
of the election.
jwear and floor coverings also
\
committee declared the three in
tended higher. The only commo¬
y"Aecordinglv,
are thi<? day

resumed, and total loadings

•

-

increased slightly.

-

.

Credit

..

"Treasury deposits declined, re¬ dities
showing fractional decreases writing to the NLRB, advising question guilty of "subversive ac€0% greater than in March, and flecting disbursements in excess of
were
women's underwear, men's ;them that we do not expect to file tivi.y." Provision was made in an
there also were substantial/ in-:
receipts, and deposits subject to
hosiery and infants" shoes. J As obj ections to the election and /that appropriation bill that none of its
creases in
reserve
April

was

activity in the railroad
equipment industry and in output

requirements

increased

compared with

a

during .April and the first three Isized
increases
weeks

pf many types of electrical equip¬
ment. Production of lumber and

increased

stone, [clay,

serves,

of May.

-Reserve balances

year ago,

good-

were recorded for

sheets and pillow

wish to withdraw the charges
that have been filed against the
bank. We are also taking steps to
we

cases, furs and
Only fractional idisbahd ^our< organization."
decreases were recorded for a few
Baker McAlpta. senior fieid exwas
maintained
at
the
March clined to about 700 million dollars
items.
:aminer for the NLRBf said he has
level, which was above the same' on May 22. Federal Reserve hold¬
received the.Guild's letter, but has
"There had
been some
very
period last' year.
;./ '*
;* ings of Government securities,
marked increases recorded prior not acted on. it as yet because the
"Output of most nondurable which declined substantially in
to the outbreak of the war. While charges were filed'pv Chnway: •
goods was maintained in April at, the early months of the year, have
:
But national officers of the CIO
the
composite index showed a
about the March level. Activity at increased somewhat since the mid¬
gain of 27.9 %^> thej increase 'in union were prepared to disregard
dle of April.
cotton mills declined
""
"
slightly, ow
the action of the Guild local. Con¬
piece goods was 33.6%, in home
"Mem ber
bank J holdings
ing to reduced coal supplies, but.
of
furnishings 28.5 and in women's way said; "The union will prose
output: at other textile mills ad¬ Treasury bills increased further.
cute the charge* against the bank
'apparel 28%/ The greatest ta¬
vanced further.
The number of Loans at member banks in leading
to the fullest tilt."
animals slaughtered under Fed¬ cities declined, reflecting largely ct eases in any of the commodities
was
recorded
by
cotton
wash
eral inspection continued to de¬ reductions in loans for purchasing
sheets, blankets, aprons,
cline sharply in April. Output of and carying Government securi¬ goods,
housedresses, furs, men's under¬
flour .and
bakery products de¬ ties.
wear, furniture and floor cover*
creased somewhat iri April and is
"In the latter part of April the
expected to decline substantially Reserve Banks, with the approval jngs
in May as a result of the
Steadily rising retail prices are
stringent of the Board of Governors, elimi¬
to be expected for the rest of the
wheat supply situation. ■«
nated
the
-; *.
wartime, preferential
"Minerals production declined discount rate of about one-half of year according to A. W. Zelomek
The Supreme Court, on June 3,
by a fourth from March to April, one per cent on advances to mem¬ economist, under whose super¬ in a Negro's appeal from a. Vir¬
ber banks secured by Government vision the index is compiled. This ginia Sunreme Court ruling, de¬
reflecting primarily the drop in
bituminous Coal output. There was obligations due or callable in not will be fhe result of price relief cided that segregation of whi e
granted to producers, which in and Negro .passenger? in buses
also a further reduction in
output more fhan one year. The regular

and

glass

products

less

and

than

excess

required

reserves

,

re¬

men's underwear.

de¬

.

funds should be hSed to pay their'
salaries.
; '
^
I.—m-r''' ""v

School Lunch Bill Signed

;

Summ Court Ruling

Voids Jim Grow Law

>

A permanent school lunch pro-'
gram for children throughout the'
nation wa$ established on June 4"
with the signing/: by; /President
Truman of legislation which au¬
thorizes

Federal

,

^

appropriations^k

in amounts to be determined each

to finance the

year,

program

in

cooperation with State and local

Governments.^ Inv s gning

the;

the President /expressed^
gratification with the Con¬
gressional act which will provide"
"the basis for strengthening the
nation
through better nutrition'

measure

his

for

school children;" Said Mr.

our

'

Git Interstate Travel

of metals, while crude
petroleum
production increased in April and
early May. On May 13 bituminous

by Government obligations or eli¬
gible paper remains at one per

coal

cent.

der
and

production

resumed

was

un¬

on

advances secured

/.IS/! /;///:/;,v>

■' :/

a

temporary work agreement;
"Yields of Government securi¬
during the week ending May ties, which declined in the
early

18 output was 70%
strike weekly rate.

of

the

.

construction contracts
rose
sharply in April, ac¬

awarded

cording to

reports

of

the

podge Corporation, The
reflected

a

awards

F.

increase

large expansion
for private residential

construction

to

record

a

for

private

construction

most

other

level;
types of

were

main¬

tained at recent high levels.

'*•??'

;

W.

very

awards

weeks of the year, rose

pre-

I

J "Value of

in

discount rate

the latter part of
in

will

announced

on

owing-to
These

rising

advices

*

J

■

to

June

5

was

news¬

1,

ac¬

production
from

Pitts¬

-

Norway

confirmed

as

American

Norway,

by the

Ambassador

succeeding
-

June

quota¬

Truman in

vices

part, according to ad-"
June ! from the Asso-/

oh

ciated Press in Washington:

*y y

"In the long view, no nation is"

healthier than its children

any

more

prosperous

its

in »the" national

ahd

ers;

than

or

farm¬

school'

.crossing state lines is unconstitu¬
In .a 6 to .1
decision^

lunch act, the Congress has con¬
tributed immeasurably both to the

Burton dersenting, deliyJus ice Reed, the Court
ruled
that the ; Virginia
statute
which
requires /bus drivers tosegregate the. races imposes an

jwelfare

v

undue burden
merce.

on

interstate

"As there is

dealing/with

no

com¬

Federal act

health

of
of

our

farmers

children.

our

and
.

the*
,

"Under

previous school lunch
programs made possible by yearto-year authorizations we have •
been
six

able to provide as many asv
children with nutri^

miH'on

the

separation of tious lunches at noon. This has
transportation," laid a good foundation for the
according to As¬ permanent program. In the future,
Osborne.
sociated Press Washing on advices
/..
/
increasing numbers will benefit—
I
Mr. Bay, whose nomination;' by on June 3,' "we must decide the and on a
permanent basis.
?
President Truman * Went to
the validity of this Virginia statute
[//"I hope that all State and localiSenate on May 16,. is reported by on the challenge that it in erferes
authorities will co-onerate fully>.
the Associated Press to have a with commerce, as a matter of
with the United States
Depart¬
long business background includ¬ balance- between exercise of the ment of
Agriculture in establish-"
ing his appointment in 1932 as a local police power and the need
jng the co-operative school lunch"
director, of the First National for national uniformity, in he reg¬ in
every possible community."v
Bank, of Bridgeport, Conn.
He ulations for interstate travel.
Under the legislation, state-local;
"It seems clear to us that seatalso is a director of' A. M. Kidder :
,to

cording to the Associated Press
that their price will be raised from
four to five cents, effective Mon¬
costs.

in

Charles Ulrick Bay of New York

on

Pittsburgh's three daily

papers

'

Bay Ambassador
Senate

;

reflected

by

extension.

sharply in

Up Pittsburgh
Newspapers Price

be

tions at retail. These higher prices tional.
are to
be expected regardless of
Justice
the character of the price control ered

April and early i

May."" A

day,

y^Employment

"Nonagricultural

turn

Lithgow

races

in interstate

the opinion read,

,

employment
"
"
;
/
/ ;
continued: to gain in April not¬ burgh added:
& Co., investment" bankers and is ling arrangemen s for the different
withstanding the bituminous coal v "The
Pittsburgh ;/ Press,"
a
strike,
and
unemnlovment
de¬ Scripps Howard newspaper, and a member of the New York Stock races in interstate motor travel
''The Pittsburgh
creased by about 350,000.
require' a single, uniform rule to
Manu¬
Sun-Telegraph," Exchange., •
facturing employment rose - by a Hearst. publication, also an¬ j He organized the Bay Petroleum promote * and
protect/ national
travel."
/ •'■•';.*./•
about 400,000 largely because of nounced that the price of .their
'.
Corporation, of Denver; and was
settlement of major labor dis¬ Sunday editions would be raised a member of a
group which or¬
.

.

contributions will have to match.
Federal

.through
ment"

funds

(thereafter
1951

dollar

1950. with
contribution
on

for

dollar,

the .Govent"

decreasing

the following basis:'

through 1955, *1 of Federal,
;
The case involved was that of funds for each $1.50 of State-.
putes, and construction employ¬ three cents to 15 cents in the city ganized' American Export Lines, Jrene Morgan who had been fined
Ilpcal funds;; 1956 and thereafter/,
suburban
ment showed a further large gain. and
areas,
effective later
participating
in
forming $10 because she refused to change $1 of Federal funds for-each $3
Sunday, June 9. Sunday editions American
-Export . Airlines . for seats on request of a Greyhound iof State-local funds."
;
' ///_ *
V Commodity Prices
had been 12 cents in the
bus driver on a bus traveling from
city and itrans-Atlantic service.
In addition to the; funds
"Price ceilings on grains were suburban areas and 15 cents else¬
foe'
Norfolk to Baltimore.
MisS Mor¬
i
He built the Rocky Mountain
actual 'provisions of lunches for;
Increased substantially on May 13 where. .; v,
/ ,>.y,:';
pipeline with Continental Oil Com¬ gan, ejected and fined by the Cir¬ children, the legislation author*,
and ceilings for a number of non"The Pittsburg
Post-Gazette," pany in 1938. He became President cuit Court of Middlesex County. izes the Secretary of
Agriculture,
agricultural products have also
Virginia, appealed ;o the Supreme
j the city's only morning newspaper
(to use uo to $10,000,000 annually*
been raised during the past month, which joined in
the increase to and Board Chairman of the Con¬ Court.,
:•
/
Jto provide equipment for storing/
Recent price increases for indns- five
cents, does not publish Sun- necticut Railway and
Lighting ; Also on June 3, the Associated
repairing and serving food in",
trial products have usually been!days.
Press reported, the Court:
Company in 1943.
schools.
r
•

.

'"-dHl




.

.

-

tenants.

burden

interruptions in freight

Bank

Board charges that the bank had^—1
interfered w.th the right of its
1;

states

"For

bituminous- coal- shipments

were

May 28
employes of the First National Bank of St. Louis voted 558
against being represented by the CIO union. The next day
said the "Globe-Democrat" the
union's international- representative
at St. Louis, Robert
Conway, filed with^the National Labor Relations
on

185

similar

The announcement went

stated that

was

beatings in its history

learned yesterday.
The
further
advices

the week ending May 18.
week

worst

practices filed against the bank be

Index showed increases during the
In that month of April. Ainong the com¬
ser¬ modities
showing gains were cot¬
vice resulted in large decreases in ton wash
goods, sheets, pillow
loadings of manufactured products cases and
blankets, corsets and

put of pig iron and open hearth
and bessemer steel was partly off¬
set by. a sharp rise in electric steel

the

withdrawn, the "Globe-Democrat"

wear showed
fractional decline. As compared
with a year ago, infants* and chil¬

most of the individiual commodi¬

continued

of

a

high

say:

ucts

one

fants' and children's

a

the drop in coal shipments. Ship¬
ments of most manufactured prod¬

April.

and trucks assembled in

slightly higher prices fpr piece
goods and men's apparel as well

corresponding period of 1945.
"Freight carloadings declined
sharply in April, reflecting Chiefly

in

result of coal shortages and dur-'
ing the past two weeks has aver¬
aged only about 50% of capacity.
"The? number of passenger cars

to

took

when

to

Bank's

the

manu¬

CIO

junct

due

was

May. During the past four weeks dren's wear showed a fractional
department store sales have been decline while the other major
one-third larger in value than in groups showed advances."

ment pf wage disputes in the lat¬
ter part of March.
v

an¬

In the St. Louis "Globe-Democrat" of June 1 it

,

the
index increased

rate, in April and the first half of

activity in the

automobile and electrical machin¬
ery

Said the Fairchild

"

advance in the Index

April and

"Retail sales continued at

offset in part by sub¬

were

stantial increases in

year ago.

V-

the

*

Distribution

indus-

some

price

an advance of 0.1%
compared with April 1 and also
increase of 0.3% compared with

Thursday, June 13, 1946

Employes of First National Bank of St. Louis
Reject Representation by GEO Onion

"Prices have also advanced 0.2%
compared with March- 1,
The

a point 3%
higher than in April 1945. /*,,

average.

The 'drop

ment

in

many

nouncement of May 17 which con-

one-half per cent to

164%

at

advances

in

tinuedr/yyy/^

;

commodities
small

tion declined 2% in

/

amounts

made earlier this year.

"The,> Board's
seasonally
ad¬
justed index of industrial produc¬

.

a

"Retail prices of most groups of
continued
to
show

Industrial Production

■

as
an

but they were in addition to price

reported:

;',v

tnan

time

May 1 showed

automobiles

smaller

s.

cording to the Fairchild Publica¬
tions Retail Price Index. Prices on

a

announced for

were

first

consecutive monthly advances ac¬

Recent ad¬

vances

the

months, retail prices showed two

between 10 and 20%.

re¬

The Board likewise

For

i

,

.Volume 163. .Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE

Stassen Views Tinnan's Labor J;

Legislation
Characterizing

President

Truman's

';

; RFC Gels Small

;

Work

labor
legislation as "totalitarian" Harold - E.-Stassen, former Governor of
Minnesota and mentioned as a possible candidate for the Republican
Presidential nomination in 1948, declared that "it would permit gov¬

Charles B. Henderson, Chairman
of the Board of the Reconstruc¬

ernment, to

been

break

and

destroy

and

nual

an¬

on

.■"Herald Tribune" from Atlantic
City, that the proposed legislation
would

correct
any
of
labor-management

not

of

causes

the

this

strike1.

alongside the 'right to
must

"Fourth—We
increased

of

measure

within -labor

.

develop

.

.

an

democracy

organizations

with

those causes being an accumulation of "abuses, bad pol¬

icies,

misconceptions and violations of human rights."
"v
■. i

or

Reporting Mr. Stassen as stating
that the President's labor legis¬

"Fifth—There, is need for strict
accountability, 1 to? the member♦
ship, of the /funds; of the unions;
with financial reporting and au4
iiting, prohibitions against use of
funds for- politicalpurposes? uri*
less they» are voluntarily .donated
for that purpose, and with restrict
tion on any compulsory assess*

*

4
;

lation '"involves very fundamen¬
tally the future liberties of men.
of business, and of labor, and the
.future welfare of the people as a
whole," Associated Press accounts
.

.

.from Atlantic
<

the

New

said:

.

City

York

:?

he

r

said

seven

would

'discord

and

points which

-

■>

the

nation's

"First-—There

must

be

an

un-

■

derstanding
1

by

working
businessman in
America
that
it
is
production
which will determine his.future
and

man

every

every

standard of
?

freedom.

living and his future

The

impossible
i nomics advanced that it is
:
*

eco-

pos-

sible to have large increases in

out of profits has been one
Iof the most harmful concepts of
wages

post-war situation.

our

I

.

.

"Sixth—There

nite,

pnions.
We need a labor court
of high standing and. with power
.

.

of defi¬

need

is

constructive, impartial and

?arly intervention by. Government
n labor disputes for the purpose
of
mediation
and
conciliation
vith a required period of time in
this

which

Orior to

is

to

carried

be

'stoppage.

"Seventh

.

the Tact
has

ment

returned
second

Division

will be responsible directly to the
Board of Directors of Reconstruct

tion

Finance Corporation for its
operations and activities. Among
other functions, it will be the duty
of the Small Business Division to

analyze special
problems of small
•

business and to assist in the
tion of those

itself

so!u|

problems; to develop

pared* to render to small business
cooperate in all practical respects
with the Veterans

'are

and the
•n

The Small Business Division
will also carry out the funbtion$
enumerated in Section 13 (e) of
the Surplus Property Act of 1944

Mr. Stassen said* legislation pret
'oad

an

as

emergency measure

tendency to be renewed. He
said the President's proposed; leg-f
a

}slation Would
war

f elating

/?-'"'■

peace.

to' the purchase, of

sur¬

plus property by RFC for resale
o small business. As to
plants and

give the Govern^
than (ever-ben

or>

Department of Commerce
matters relating to small busir

ness.

'•

sented

applicants and borrowers; tp

Administration

provisions on a national basii
md preventing; abuses by man¬
agement of its position in product

ii'eal

property, such purchases by
a priority second only
to purchases by Federal agencies
?or their, own use. As to personal
property, such purchases com4
after the special veterans' set*
aside, Federal agencies and the
RFC have

jOregon Banfcersil^

Emerg. Housing Bill Signed

:PIan Conference
Financial

,

of the day
by. a group of
-outstanding speakers < at the Ore-?
-gon
Bankers' association's first
•will

be

topics

discussed

President, Truman:

on>

May - 22^

signed legislation putting into op-j
eration
the emergency I housing
program intened to facilitate the
private construction of 2,700,000
new

general veterans' preference but
ahead of purchases by State and
Municipal Governments.

the nexttwo Fern's, by

;

briiriesveteran^; withib
providing
>
years at the Benson hotel in Port¬ $40Q,000,000 for subsidies to stim¬
land June 16, 17 and 18, it was ulate
production of scarce build-;
f
reported by Frank Barton; fi-j ing, materials.: The; law also : in¬
•mancial editor of the Portland creased
by $1,000,000,000 the Gov¬
•"Oregonian " from whose adviceS ernment's
authority
to
insure
'we also quotes
home loans by private capital^
-full-scale

convention

in

several

-

.

a

Mr. C. Y.lDodds, who has had
major role in the. business loan

activities of RFC for

the

coal

strike

of

the

expired

of

contract

June

7

terminated late

was

and

on

ppPV:

p?4

This strike

the

midnight

May 29;:

on

nation's

old

at

instructions

were

telegraphed authorizing the hard
coal miners to return to work

on

Monday, ; June 10. The conces¬
sions
gained by the anthracite
miners

their ?

in

closely

contract

new '

gained

the

for

soft

coal

in their contract with the Govern¬

18y2

cents

an

increase of

hour and

an

health

a

and welfare fund into which shall

be

paid 5 cents per ton on each
ton of anthracite coal prduced for
for sale.

years, will head the new Division;

Plans

"nounced
"eral

for

on

the

gathering
May 11 by the

convention committee

angen-

listed

-the following among major speaki
'ers for the three-day session:
'
-

;

C.

W. Bailey,

President of the

First National Bank of

protecting lenders against risks iri-j

thracite fields will receive

a

basic

increase of $1.29V2 per day under
the new contract.
The present

five-day week was continued, and
a
sixth working day of
seven
hours at time and

half pay was

a

made

optional to both miners and
operators. Travel time for. inside

miners,

portal-to-portal

or

was-increased

pay

from

$1,132
to
shift. The hard coa
provides for vacation
pay of $100, instead of the pres¬
ent $75 for ten days off? Although
the men will be paid their vaca¬
tion pay this summer, the vaca¬
tion period will be limited for the.
year 1946 to foujr days, from July
4 to July 7, inclusive. $1,339

per

contract also

curred

by selling homes on small
down payments, i Veterans are td
receive preference: under the law
•n

buying

renting houses. Press

or

advices stated:.

Clarksvillej £ The

:

/'

.

law continues until the end

|*]Penn., and Vice-President of the

of 1.947 the war-time

'American

exercise

Bankers'

Association;

>Dr. Wilson Compton, President of

-Washington

State

College,

Pull-j

Dr. Howard R. Bowen, eco'homist of tha Irvmtf Trust
man;

-

first,

:

authority to

claim

scarce

on

building materials for construct
•tion

of

low

medium

and

cost;

liomes. It puts price ceilings - qri
homes,

new

although

Congress

New York; Walter G. Gar4 turned down proposals to. hold
^own" resale prices of existing
-ver, agricultural economist of tn§
•Federal Reserve Bank at Chicago! houses,
v
!
i Robert
H.
(Bob)
Warren, dirt
-farmer
of
Forest;: Grove,
and Senate Labor
Group ' t
1
Harvey E. Stowers, Assistant tci
-the President of Aircraft Indus-!
Equal Pay Rise
.

pany,

.

.

Approves

i

tries

Association of America, Lo^

''

-Angeles. "r 4

;

Dr. Wei Retires

I

4
as

?

,

|

China's Ambassador to U.S4

•

(

With the departure from Wash¬

ington

on

June 5 of China's Am¬

bassador Dr. Wei Tao-Ming, who

planned " to "leave on June 7 foti
'his native country and who, re4
•

-

•

portedly,

will

Washington
! President

by

.be

replaced

Wellington

Truman,

it

was

in

Koo.
in¬

dicated by Dr.-Wei, (it is learned
from

United Press accounts. from

Washington June 5), gave him a

,;

In

report to the Senate Educa¬

a

tion and Labor Committee

sub¬

a

committee declared itself in favor

of -equal
md

work.

The

perform

'nequity

"based

in

,

for

on

a

sex

compensation

wage

is

an

Salgado,

Arbitration Commission in Haiti;
s visiting the United States at the
mvitation of the Department of

^taie? He purposes to
colleagues
aomics

State

proved,
Pres3

according

advices

of

to

May

18, higher

could be given either
"

on

seniority

ap¬

Associated

or

a

an¬

Minister
1933

of

Finance of Haiti. In
•

he represented

Haiti at the

7th Inter-American Conference of

Montevideo.

-

P As

a

omy

and Finance he is prepared

to

specialist in Political Econ¬

lecture in American Universi¬
either Political Economy,

on

contract

made retroactive to

were

May 31, 1946.

message of

greeting to take back

system and not

on

between
States.
~

Mr.

better

Haiti

-U-;

Salgado

understanding

and

'■■

;

the

to Generalissimo Chiang Kai-shek.




between the

sexes.

I.

Com¬

duPont

do

plant - at Hanford, Wash.; about
Sept. 1. The announcement stated
that

the

tion

of

been

construction

the

and

opera¬

works

Hanford

undertaken

had

by the" duPont

company

emergency,

tilities

was

as

consistent with the

Government's plans." M
;
> •
It is stated that the Government
with

contract

that with
for

all

G.

E.

duPont

work

issued

son,

cording

to

is similar to

in

fee

that the

be

that

statement saying, ac¬

a

to

the

Associated "Press,

the company

accepts the re¬
sponsibility because " it; is of tremendous importance tri' our na¬
tional interest that wd ; maintaini
and develop still

further Our
pre-eminence", in the

try's

.

coun¬

field

of atomic energy, having-in:-mind
both its military applications and

its tremendous peace-tinte poten¬
tialities

as a power source and Li
other beneficent applications." :
"The General Electric Company

was

for
the

engaged in atomic research
peacetime application before
war;" Mr. Wilson added. "With

his background, we are convinced
hat the greatest possible
ment

of

Stalin Won't Visit Truman
Truman

to

revealed

his

conference

• on
May 31
invitations is¬
by him to Prime Minister
Stalin
to
visit Washington, the

news

that

.'only is the most constructive

despite

two

atomic
world

for

Russian

leader

had

declined

on

delicate, health. The
President gave Mr. Stalin the first
invitation during Potsdam conr
ference last summer, and repeated
it about a month ago, suggesting
a social visit in the United States
the

plea of

while

conference

the

ministers

was

of

foreign

in progress in Paris.

Upon being asked further whether
plans for a meeting in the near
future were under way, Mr. Tru¬

to

the

but

the

to

greatest opportu¬

our

jobs and

more

which

problem
presents,

energy...

nity for

sued

deve!?^

non-military application

solution

the
foreign
tight that, as Sena¬

between

deadlock

ministers is

so

goc£j

more

people in the future.":

more

The Hanford works will be op¬
erated by a manager with an

ad¬

visory committee consisting of H.
R.; Winne,

Vice

-

President

in

charge of engineering policy; Dr.
G.

Vice-President

Suits,

director

of

arid

General.'.IjSlectric

the

Research Laboratory, and Dr. Zr.y

Jeffries, Vice-President and Gen¬
eral Manager

of the G/B. chem■

v

ical department.

.:

Hn.'.r-

■

•

•.

:.

: *

Frederick

Colonel

J.

Clarko,

Engineer, Hanford Engineer

area

in

Works,

a

statemerit said that

(D.-Fla.) has - been
insisting in the Senate, only a
meeting, of. .the chiefs of state
could
make progress.: However,

will

Mr. Truman declined to comment
on
or

the peace conference situation
the relations between Russian

remain'

ap¬

proximately six weeks in Wash¬
ington, D. C. and then will visit
universities in

Byrnes.

the northeast

tion of the United States.

sec¬

retain; the present

working force, under substantially
the

.

.

of

conditions

same

ment.

employ¬

:ru.U>:

?

.:

--.j''tO

f

Surety Man Gets;

; 1

Honorary Degree

*

Guy LeRoy Stevick. San Fran¬

cisco, Vice-President in charge, cl
the Pacific executive,

^ffice of th«

Fidelity and Deposit Company cf

;

Maryland and dean of West Coast

Truman Names
:

G. E. hopes to

tor-Pepper

United

;"?:f.

if

discrimination

Electric

E.

Nemours & Co., Inc., operation 01
the
Government's
$347,000,000

not

.

Foreign Commissar Molotov and
Sociology, and thus United States Secretary of State

'

'

from

over

.

merit

sex

General

under which the latter will

take

,

man,According to Washington ad¬
P A member of the bar in Portvices May 31, from the Associated
Au-Prince since 1908, Mr. Salgadb
Press, said that he had no im¬
has served as Judge in the Court
mediate plans,.
;
1
of Appeals and Judge in the Su¬
Speculation has been, the Asso¬
preme
Court. In
1929
he
was
ciated Press continued, that the

a

the subcommittee

Department's

nouncement of June 4 continued:

promote

tion, which

past

provement of future relations.

4 The

practice.": Under the legisla¬

wage

the

the; United States and the
f. development "and
im¬

or

an

study

economic relations between Haiti
and

ties

i

to

possible

Finance,

f

constitutes

confer with
field of eco-

the

in

and

unfair

and

i

lawyer

and
^optical economist and Chairman
of the Inter-American Commercial

stand¬

ards

based

men

comparable

stated

group

difference

pay

standards

pay

women

Salgado Visits IJL S.
Francis

the

pany

All-provisions Of the hard coal

President

,

with

„

.

v

research

energy,

performed is
$1; the Government to retain con¬
Based on a severi-hour day, all trol of the
plant.
"5
categories of workers in the an¬
G. E. President, Charles E. Wil¬

use or

number of

a

ensive

atomic

during
the •»' riational
with the understand¬
ing that they would retire "from
miners
the program as soon after the hos¬

parallel those which the

United Mine Workers of America

ment, and included

coordinate the technical ad¬

and

work,

termination

constructively and expedi¬
tiously serve small businessmen,
including veterans who are enf
gaged in or contemplate entering

and' current

to

major

which P

more

investigate ? arid

Plans have been announced by

■;he War Department for "an ex-

program"
in
the
Associated
Press reported from Washington
year,
that of 75,000 anthracite
on June
4, adding that a contract
miners in Pennsylvania, went into
aas been made by the Government
effect on May 30 following the

the

.

Business

>

Atomic Research-

issue

our

6,-1946, page 3111.]
;
As the 400,000 soft coal workers

problems of small business, the
Board feels that the creation oi:
this Division as a separate unit
will- enable the Corporation to

The s Small V

published in

was

G. E. to Do Gov't:

of June

continuously
attention
to
the

given; special

ment more power

in

freight traffic, which had been
imposd to save coal.
[The com¬
plete text of the soft coal agree¬

moving forward
in
safety relu'rements and in health and lwel4

fore in

unions

tial

loan

to make substitute decisions of the

between

that

Agreed Upon

coal

Krug, Secretary of the Interior, who is also Coal! Mines
Restrictions were immediately lifted by the Office of
Transportation on rail-^road passenger and all non-essen¬

must, be alert and progressive!

jurisdiction

v

.

soft

Defense

visory service which RFC is pre^-

/'

Government

—-

on

tion."

.

"Second—A method - must be
'% established for the settlement of
i jurisdictional
conflicts
between
i

.

unless they are democrat¬
ically voted by the membership.

.v

,

....

.

industrial

correct

adjust

economy:

.

and

ments

"He outlined

-

June 4, in
"Sun," ? further
on

of contracts,

acceptances

in other important affairs..

withstanding

the

J. A.

and

ployment and full production, said
the RFC report, which added:
Mr. Henderson stated that not¬

Corporation

New Contracts Are

as

of

Administrator.

country, and the- jurisdic¬
tional strike must be outlawed, r;' the importance of small business
"Third—We must develop the as related to our national
economy
'right to work? to take its; placri and to the objectives of full em¬

flicts,

i.

an¬

June 5 that there has

on

strike

miners, which began April 1 and
continued for 59 days, except for a two-week
truce, was ended at
5:07 p.m. (E.D.T.) on May 29, following the
signing of a contract byJohn L. Lewis, President of the United Mine Workers of America

This action has been taken by the
Directors in further recognition of

provision for secret ballot vote in
the election of their own officers,
and in their decisions on strikes

con-

Corporation,

;

The

established in the Corpora¬
a
Small Business Division.

tion

con~*>

convention in Atlantic City,

J.,

Finance

nounced

management and any

any

June 4 of the Rotary In¬
ternational. He stated, according to
special advices to the New York

.

tion

business?
"would permit government to break and destroy any union."

Mr. Stassen's assertions were
tained in an address at the
N.

emergency

*T

Soil Goal and Anthracite Miners Return to

Totalitarian Business Division

as

proposed

3267

■

Gregg

To Tariff Post
John

Price

Gregg of Oregon
named by President Truman
May 13 to be a member of the

was
on

United States Tariff Commission

surety men,
ed the

on

June 8 was award¬

honorary degree of Doctor

of Laws by the

board ;pf trusteej

of Dickinson College,
Mr.

Stevick

Dickinson

was

a

Carlisle, Pa.

graduate from

College in

1885.

■:'

■'..«■;■/'

■

THE COMMERCIAL & FINANCIAL
CHRONICLE

3263

:■:■'■

'„.

at

Controls

Twenty-five Years of
(Cbntinued from first page)

lished

beetf beheaded, and that the dra¬
gons h&cj'&ll been slain.
Not since

Their

the

his "Business Cycles and
Causes," describing the cycle

nomy.

13thP'century had there been

such ecumenical unanimity
the

Theresas

ends.

those

realizing

all but unanimous, and
that

btit* universal agreement,

all

of

that

theme

the

of

that

this

provide

"A

paper:

the

double

of

nexus

Spencer

Herbert

what

had called the contractual

caste-'of Status.
the

It

economy.
Money
for the individual, busi¬
prosperity for the nation, are

of

crossing

sented

i-tfT

Jordan

pre¬

The ^ 20th

.

century

to

ing another, it has been a period
of dek-.MCtion, a time of troubles,
in which old orders were swept

Without clearly giving place
nefo.^It has been a period
lavish)?hfp 'promise and niggardly
in fulfillment; of questions rather
than AiiSwers; and at the present
lime dtiP personal moods alternate
away

to

betweeri" extravagant

hope

and

equally/Extravagant despair. The
trunip^VJ halls, but it gives forth
uhCeffain sound.

pose:ihat

Yet

we

sup-

orders are forming,
and 'iatfC ^forming out of the old.
Thefe

new

i$yery little actual discon¬

tinuity™ ill < history,
•■X often

lie

difficult

;o

though

is

it

by whtc'HHthe continuity is maintained!:joo:- ... .
• ^

into

conscious

knowledge, and

ful efforts.

maze

parily

of

syn¬

wants,

purpose¬

Beneath the other lie

and

vague

conflicting

each

generation

their

own

refashion

images.

In

and

dim
mo¬

of f; action,
the wav¬

meanings

from

after

this

lie the ultimate

inner world

tives

ideals

it

emerge

ering standards by which men
judge what is for them worth
while.
not

The

money

supplanted,

has

economy

but

has

it

har¬

nessed these forces.

Upon human
activity and human ideals it has
stamped
it

has

its

pattern.

own

facilitated

the

(How)

division of

labor, (how), it has given a pe¬
cuniary twist to the desire for
destruction, (how) it has shifted
the basis of political power and
given rise to new social classes.
(How) it has taught men to think

Adam Smith and the Division
u

0f Labor

Adaili

Smith

his

wrote

"Wealth of Nations," he selected
the

as

:heme of his first chapter
It is com¬

the Division of Labor.

monplace; reading

today, but it
nOvClty itself in 1776. He was
prophetic in recognizing its eco¬

was

nomic-significance, but even his
insight
no
anticipate its social
.

division

of

that

this

increased

He

conseqdence.

the

saw

labor

econbihic* potential;
he did
foresee.that it would create a

not
new

type of 'kbciety.

With the division

of

come the money

labbt^would

economy/

and an enormous in¬
Jh^he actual and relative

crease

number "6f

wage

Rich

earners.

and

pbory-bond and free, there had
always been, but never before had
C

been! an economy which expexted the majority of its people
to be .'.Otally dependent upon the
i; cont'nuity of a stream of money
ere

arid

when

Economic
of much

pushed to extremes.
theory will not prove

use v.

unless it grasps

.

whe relations among the pecuniary
institutions civilized man is per¬

Kng's

had

'• een'

there

society had
acts of God

enemies.

devastating

There

and

wars,

h?d\ been cycles of dearth

ar.d ;

lenty.

But with the money
would come cycles of

ecoremy
arcC; er so-t,
rr..crc

by

r

equally painful but
humiliating, and unmitigated
' oi K b submissions to the in¬

scrutable* *
T...3 'Mohpv
.

.

• •_

; •;

■■

*

-

•' *. "p.','

E^nomy

economic

the

over

be

may

has

concern

intervening

concern

taken

This

years.

summarized

as

follows: the money economy at its
best has*proved highly effective
in

providing economic satisfaction

for

its

participants.: For

reasons

inherent not in itself, but in its
institutions, it has proved highly
unstable.

This

instability has
economically costly, and at

been

times

socially

concrete
the

intolerable.

objective

to

was

The

reduce

instability. Academically

speaking,
creased

this

suggested an in¬
emphasis
on
monetary

economics.

It

will

renthetically that
raised

be

pa¬

question

no

noted

was

to the general economic

as

structure;

and

this

premise

has

been retained down to the
present.

Legislative Actions Controlling
the Money Economy

.

the

sense

means

ofh production

priva

,

the

e

end

property.
of

the

economy-was

cally

st'll

agrarian:: its

that

have

the

been

century our
characteristi¬
gravest

eco¬

nomic nrbbl*r>s had arisen at the

frontirirnoivhEh
money

'jAcottomy

«eparaed
from

the

the
non-

money rcoromy of farm and vil¬

lage.

Ey Cs pnd of the century
Veblenj-jCeyld be *,cing the word
pecimihry' to
our society.
In

taken with reference to
the control of the money
economy,
with some reference to the inter¬
action

lib

'j:




academic

action.

by

no means

be

and

thought

The catalogue is

illustrative.

complete, but it

may

should be taken with reference to
domestic

considerations,

without

•regard to what had been in Euro¬
pean
experience, the
principal

guide to such action—namely, the
of the foreign exchanges;
second, the apparent economic re¬
sponse in 1922 to the appearance
of low money rates encouraged a
state

belief in

causative

the

power

of

cheap money as a force' in itself;
and, third, the disastrous commod¬
ity price movements which char¬
acterized
that
particular
cycle
turned attention to the control of
the

price level as the strategic
point of the general campaign of

In

this experience

short,
as

throwing

was

the for¬

on

mal monetary

machinery—the Re¬
System—the responsibility
merely for preventing finan¬
panics, but of managing the

serve

domestic

cycle.

The

experience of the United States

as

the concurrent experiences

perience

had

The

.,

been

the

or

ex¬

of

Panic

Panic of 1907

act of God

mies,

not

was

the King's ene¬

the old phrase had run.
part of the cycle of
dearth and
plenty, described by
Sir William Petty a
century and
a

as

was

not

half earlier.

causation,
failure
of

of human
of

institutions,

error

in

operation

institutions; and these

stitutions
The

wasf

consequence
human

human

human

It

the

of

were

first

a

or

of

in¬

financial.

effort

to control the
business cycle took the form of a
specific attack upon its most con¬

spicuous and violent phase,
lv,
and
a

name-

the

The

financial crisis or panic.
remedy suggested, approved,

legislated

centralized
In

this

belief of

the

quantity

and the efficacy

money

of the discount rate

as

ism

of the

for the

control

a

mechan¬
quan-r

tity of money, by influencing" its
price. The novelty of this mone¬
tary doctrine lay in its shift of

emphasis to the relation of the
monetary control to the domestic
economy, rather than to the posi¬
tion

of the

currency

on

the for¬

eign
of

exchanges. The experience
the years from 1921 to 1929

confirmed
time

these

views.

the

price level
stable, and the

ably

in the volume of

was

In

that

notice¬

fluctuations

production small.

It is true that the Reserve

resisted

islate

System
perennial attempts to leg¬
directive

requiring it to
control the level; but the belief
that the cycle had been mastered
by monetary technique was widely
accepted both in America and
a

abroad.
lief
mon

The best evidence of be^

is the

considerable recovery

was a

production and some advance
in prices.
By early 1937, the

of

American

been

effective in

1922

were

rap¬

economy

attained

a

ery,

prosperity,

even

or

lieved

ciated with the

that

business

funda¬

was

excess

had been the stock

.

tinued at

previously asso-

level

a

except- '

unemployment con- |

that at its best

mentally sound, and the price
level impregnable.
The area of

had

comparison with 1932 was
considerable measure of recov¬

idly, vigorously ; and confidently
applied.
It was asserted and be¬

f

capitalization of

com¬

stocks in that period—a

capi¬
the as¬

•

depths of cyclical;»

depression. It appeared that while

;

had been
increased, its statistical average
turnover remained low; or, put

;

the quantity of money

market,
and this had been liquidated. For
the economy in general, the worst
that could be expected was a brief,
mild
recession, due to psycho¬
logical shock. Open-market oper¬

of the money
was alleged to have a normal velocity and a part no velocity at all. >
This phenomenon was described j

ations quickly retired the burden¬

as

discounts, the rates were
rapidly reduced, arid the public,
the academic community, and the
Government alike "expected the

saving which

some

of recovery and stability.

sequence

The sequence was

It

illustrated

quite different.
defect

a

in

the

dogma—in this instance, the doc¬
trine
All

of

the

marginal

theories

credit

borrower.

at

the

time

postulated the perpetual existence
of
the
marginal borrower—the
borrower who

was

the market

rates

mitted
been

as

excluded from
and ad¬

rose

rates fell.

as

As there had

another way, a part

is,

oversaving—that

money i

abstracted from i
consumption and not returned to |
was

;

income stream of investment.,.

the

Two

explanations were forthcom- >
ing—the doctrine of the mature
economy in thig country, and in >
England the theory that economic yl
equilibrium might be
attained (
without the full use of resources. ; r
Oddly enough, the mature econ- .
thesis never won much fol-ij;.

omy

lowing in England, which was ob- j
viously the more mature; while,;;
the submerged equilibrium doctrine won little support here since ;.T

expansion in bank loans the sequence quickly demonstrated ,
deposits for months preceding that our economy was not in
the crash, when rates had, been equilibrium.
The general effect /
high, few doubted the appearance was to shift the emphasis of eco- r
of the marginal borrower as the nomic thought to the national in-*,>;*•
stabilizing force when rates fell. come, rather than to the price >
The marginal borrower failed to level or the quantity of money,
{
appear and the depression ran its
The 1937-1938 Collapse
course,
with
commodity
prices
no

,

.

nearly

reinforced

there

what in

falling

economy

the elimination of the

as

tity of-money was readily raised
to or above the level of the '20s;

Following the crash of 1929, the
techniques that had seemingly

with

money

•

Thursday. June 13,1946
Thursday, June 13,1946

domestic economy.

reference to the moderation if not

well

;..,

_,i

or

cyclical control.
construed

■'.,

from

their

far

as

as

brief

10

years

plateau
before

they had dropped from their post¬
war peak. As in the earlier
period,
the price level became the focal
point of thought on the cycle and
its

control; and the idea of re¬
storing the price level became the
objective of monetary action-..
Both

England and the United
adopted similar measures,
although they were represented

States

under different
terms.
England
depreciated the pound in terms of
gold and of a number of curren¬

cies

which retained

As

nexus.

a

sequel,

sterling prices
the

fall

in

a

was

fixed

the

gold

fall

in

arrested while

so-called

gold

prices

continued.

Whereupon the United
States, and eventually France, de¬
preciated their currencies by re¬
valuing gold, and thus returned
sterling to something like its orig¬
inal exchange relation.
The two
sections
were so

could

of

the

Western

World

evenly balanced that each

use

the other

as

a

fulcrum.

The part

played by this maneuver
arresting the downward phase
of prices is differently evaluated
in England and in America.
In
England, it is regarded as a major
contribution to the technique of
cyclical control; in America it is

in

i

The abrupt collapse in 1937-38
met with what had now be-

?

was

the standard cyclical control
—lower money rates" and more k
come

t

Government borrowing, with Gov¬
ernment

no longer as the marginal
borrower, but as virtually the sole y
borrower, either of bank credit j
or
of savings. The recovery had
,
been but partial and hesitant when
our

,

launched into an

economy was

If#!

armament program

which present¬ <1
ly merged wiih the war boom.

:■

The

changes introduced during
seem novel,
and at the
time they were introduced were
the

war

considered

v

especially
in this country. A surprising pro¬
portion of them have roo;s run¬
ning well back into the prewar
period. Many of the direct con¬
trols over the economy have been
removed, others will be removed;
it

but

is

temporary,

fair

a

will

be

even

guess

reinstated.

long

retained

that many
and some

Generally speak¬

ing, those that were removed per¬
tained to physical production and
distribution; those that have been
retained

related

to

the

money

For example, WPB was
disbanded, OPA was retained; ra¬
economy.

tioning

was

abandoned,

pattern of interest

ra.es

but
was

■'?*

if

the
re¬

tained.: Federal .wage fixing was '!=> .,.v
form of introduced in the
sumption that the cycle had been economic
war, and has
warfare, of doubtful ef¬ been
so
extended since that the
either eliminated or brought un¬
ficacy in domestic affairs and at
term
der practical control. This belief
collective
bargaining
no
best merely capable of shifting
was
longer refers to negotiations be¬ J.v-, ■'
perhaps even more strongly economic
impacts from the domes¬
tween employer and employee, but : £
held in Europe, which, somewhat
I
tic to some foreign quarter*
It
between leaders of organized labor
enviously, could not fail to remark is conceivable that both
appraisals and the
While House.
In short,
that this type of monetary control
are
correct for their
respective
could be exercised only by a coun¬
virtually every element of the
countries.
'
money economy is now directly
try which was not constrained by
allocated to the control of some
the position of its currency on the
Dollar Devaluation
agency in Washington. The inter¬
foreign exchanges. Although >-we
The devaluation of the dollar
est rate, wholesale prices, retail
were
on
the gold standard, our
did not achieve its objective of
monetary policy was administered
prices, farm prices, wages in im¬
raising commodity prices, although
portant industries, and minimum
independently of gold inflow and there was wide
expectation of the
wages in general, are all areas as¬
outflow; and, somewhat paradoxi¬
prospclive price rise both by those
signed to control, although the
cally, our experience impressed who
hoped for it and those who
control is of uneven effectiveness.
many foreign economists with the
feared
it.
The
expectation
of
It is now almost rare for two per¬
advantages of a currency which neither was fulfilled. The
objec¬
sons
to
could be administered outside the
engage
in any sort of
tive of higher commodity prices
restraints of that standard.
It is
money
transaction but some ;!■' V' '
officially remained, and the next
in this period that the term "man¬
agency of government is an in¬ "•i'V
method, while staled in somewhat
terested par^y.
v.,
aged currency" or the "managed novel
phraseology, was more con¬
gold standard" came into use, with ventional. The
Meanwhile, events had occurred
quantity of money
only a partial realization of the was to be reflated to the
prede- which necessitated the abandon¬
fact that the gold standard could
ment of some of the earlier prin¬
pression level, and
under the
be managed only by a Country
ciples. The Federal Reserve Sys¬
canons of the quantity theory this
which was
secure
on
the
ex¬
would
restore
the
status
quo tem had been the agency of cycli¬
changes.
cal control, and its most trusted
ante, both for prices and produc¬
talization

valid

only

on

usually considered

as

a

.

'

-

,

The most recent American

1913;> JDr. Wesley Mitchell pub- tem.
.

of

oolitical

It

But almost to

18th

actions

1907.

•

the intent of this paper

now

trace, in parallel, the sequence
legislative and administrative

an

The;,money economy is sometl ingxquite; distinct from
capital¬
ism.
America has always been
capitalistic»in

to
of

I

versus

p{^Capitalism

first,

action by the Re¬
might,
could,
or

Banks

serve

theory of

t

'
t; >'

^

.

that monetary

of Europe, both set forth with an
amplitude of statistical detail for¬
merly unavailable to economists,

It is

Up to the time of Adam Smith,

and

it by American economists:

fecting, the human nature he in¬
herits from savage' ancestors, and
the new forces science lends to
him."

incord.'rii

Vicissitudes of
beenfat fibutable to

of the financial crisis or panic
phase did hot eliminate the cycle;

cial

formal

own

experience of 1919-21 illus¬

and three lessons were drawn from

logic,

of its

:

the

The

»;|

trated the fact that the prevention

efficient within certain limits but

ican

Wii'eld'

type Of

The 1919-1921 Experience

not

in terms

;x: •: ■/>.rq^o.'hwr>j.

of the

This summary, in general
terms,
forecasts the course which Amer¬

the threads

see

im¬

individual's

reactions

chronized

definite

the

Activities—his

or

instinctive

and

date has
not'bedn an age of faith. Because
it had lost one faith without gain¬

an

impulse

endeavor

pecuniary: institutions,
one

■

Twentieth Century Destruction
,

by

Beneath

of

of social welfare ihat members of

than technical

more

pp

difficjjjjlg^; V

ends

Promised

the.

the

artificial

the

Landrr^ad been entered, as that
the

ness

not quite

was

that

feeling

society,
society of

the

from

distipct

as

establishment, there has

no recurrence

monetary crisis which had been
previously a regular element of
the American cycle, • '
;

money

posed

Jwas the ultimate in indus¬

organiza.ion; that the money
economy under the form of the
gold standard was the ultimate

,

since its

making

of

trial

X

adopting an estab¬
lished European mechanism; and

personality is acquired by citizens

talism

v

eco¬

concluding paragraphs

work

of

the American or
British; type was the uLimate in
government; that corporate capi¬
demdeiracy

-

the money

but

were

been

It is the

to

as

en<^£ of society or as to the

means" of

of

function

a

as

we

the time — and still stronger
subsequently — indicated the
strength of the feeling that the
primary loyalty And responsibility
of the central bank lay toward the

V'

.

> ■,,;

*':;-

was

the creation of

reserve

banking

measure, it

sys¬

is true,

■,

■

It

this

must

not

policy

he

was

as

supposed
clear

at

that
the

time as it is in retrospect. Indeed,
there was a substantial deviation

from it in

tion.

In this reflation process,

State

was

the
perform the function
of the marginal borrower.
The sequel gave a limited con¬
to

1927; but the criticism firmation to this thesis. The

MM*SSJSSafcSSSW

quan¬

mechanism had been the discount
rate.

The

essence

had been the

of management

ability of the central

bank to dominate the market rate
of

interest

by

its control of the

■■

■

{Volume 163
quantity
action

of

whether

money,
dictated

was

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4498

its
exi¬

by the

gencies of the foreign exchangee,
or by the indicated
requirements
of

the

the

domestic economy.

Under

public debt, in the aggre¬

gate,

the

banks,

amount

and

the

held

rate

in

the

pattern

on

which its value
rests, now largely
determines the limtis of Federal

Reserve action.

v:0

It

there has been
in

the

can

longer

no

Concurrently,

marked

change

relation

of

a

supposed

quantity of

the

money to the level of

prices and the volume of produc¬
tion. The dogma of the
quantity
of money as the
great determi¬
nant of both has given
way, in
some
quarters, to an almost equal¬
ly emphatic denial that it is re¬
lated to either.
The overriding
fact of the public debt has thus
de facto altered the status of the
Reserve System.
It has become
merely
in

of the many agencies

one

Washington

charged

with

a

fragmentary responsibility for ad¬
ministering a sector of the money
economy.
It is remarkable that
the sole agency in
Washington

With any extended experience or
in the problems of the

tradition
money

economy has been - relegated to what is hardly more than
an

advisory capacity. Or

put

this

idea

another

could

one

way—that

the public debt has come to domi¬
nate the old problem of the con¬
trol of the money
economy,

v.

3The 40 Years Since the 1907 Panic
Thus

train of

a

events, set in
legislation follow¬

motion by the

ing the Panic of 1907, comes to its
logical conclusion—or rather it
to

comes

of

one

several

conclu¬

sions which might have been logical—almost 40 years later. sfThe

Panic ,? 6f

acutely

was

tions

to

the equilibrating
adjustments required to make eco¬

nomic existence viable.

after us."

come

mise

first disputed

from the

was

trophes they have created

a

prescribed responsibilities toward
the

money

From

economy.

the

initial

responsibility of no more
than averting the panic or crisis
phase of the cycle, these respon¬
sibilities have been enlarged until

they embrace

aspect of the

every

economy, and find
recent expression in

their

money

most

legis¬

lation which proposes not only to
eliminate the cycle and to stabil¬
ize the economy at a level market

by full employment of human and
material

resources.

Specific Gov¬
agencies
armed
with
adequate powers are
provided to stabilize the price
level, the interest rate, the level
of employment and the national
ernment

seemingly

Income—which last is the ultimate

statistical expression of the money
economy.
Thecontrol
of i the
money economy at once central¬
ized and fragmentary, is complete.

After 40 years of marching—much
of the time in a wilderness—we
stand

The

again

on

Jordan..

the banks of the
;

....

For the economist it might seem
if he had rather reached the

Pillars of Hercules.

All the giants
dead, all the dragons are slain,
air the problems solved and all
are

the questions answered.
of the quotation given

But part

endeavor

artificial

imposed

institutions.

by

Beneath

of

pecuniary

one

lie

the

Beneath

...

and

the

other

conflicting

lie

ideals

the

of

social welfare that members of
each generation refashion in their

images.

In

this

dim

inner

World lie the ultimate motives and




ators

accept¬

was

cities of the market;

it proved

tions

ex¬

know

capable of disturbing and even¬
tually destroying the equilibrating
of

the

(D.-Ga.)

and Ball
similar restric¬

to be attached to appro¬

4.0

3.1
3.2

3,2

"3

4.1

3.3

3.1

3.4

2.9

4.0

3.7

3.0

''

.

I

5.1

t,

3.4

5.1

3.3

5.1
4.5

;•

4.0

3.0

3.6

3.0

'

3.7

:

3.6

3.9

,:v

3.7

3.0

! •f'S3:4 4"

•Cw3.§:;

1

Y/ffc:'-."

brifiJa

From

Washington

!o

r

-

holLi)*.

Ahead of the N$itfs
(Continued from first page)
the

Nine

Old

Men

we" telling
taught to believe, meh above ing/

were

were,

as

:J

They were men out of
the tempest, men who could not
have

•

ambitions,

more

men

serious the situation is,
what amusing to see

iti^sohieJustipe Rob¬

who could sit up and look at the

ert

passing parade and act judically,
with no axe to grind.
Lawyers who make up a very

the lid.

important segment of

our

way

of

^&iher•,v;c!0^;
howevbjr,( how
.

Notwithstanding,

.

any

niloe't

dirty joke at its

a

■

approach.;

.

instrument sets forth meth¬
ods under which strikes
may be

same

Control

market.

Russell

.

underestimated the
economy as; an intruder

function

3.1

YtPld

£137(200)

(10)

H.

Jackson

figure

This

blowhVg^off

now

"youngish," dynamic

has about

much ntftddo

as

with the present situation oh tlhe
Court which proved to be (hlsnun-

Although the policy of the living, could advise other men doing as anybody we can imagine.
who were trying to pursue their It was a tremendous blow
tpuhim,
union, formed last April and
claiming a membership of 73,140, way of life on the question of apparently, that he was rboi se¬
whether they were pursuing it in lected as Chief Justice. We
is not to engage in
yhave
strikes,; ac¬ the
legal way or not.
never known why Bob Jaqfesom—
cording to its constitution, the

ignored' or
money

"Times." > The

specifically at the

priations bills for all departments
and agencies.
'

Smith

that Adam

now

York

aimed

are

4.2

I Average

Insurance

Agriculture Depart¬

(R.-Minn.),. and

tremely efficacious in war finance,
but its application or applicability
to peace over time is untested.
We

New

(15)

at¬

ica, a Congress of Industrial Or¬
ganizations affiliate, it was stated
by the provision's sponsors, Sen¬

alternative to the incapa¬

as an

% The Republicans and the Demo¬
crats

fought

vigorously

each other out of

office.

kick

to

But

we

we

refer to them all by

names

which is

a

theft

commentary on

the low repute they
should have considered, himself

have.atjained
occupies
victory
The bill will have to go to con¬ never looked upon the
economics the ference to
over
one
of these bands of pol¬ for that post.
He is not .apy^ble
adjust, the difference
same
monolithic place that the
between the House-passed appro¬ iticians as constituting a revolu¬ lawyer; there is nothing judftial
free market did to Adam Smith.
tion. Our high tribunal was there about his Nuremberg
priation and the additional $25,prosecutions,
Is it conceivable that somewhere
to see that justice was done to all
although it is quite political^But
000,000 voted by the Senate. Ac¬
in the dim inner world of ultimate
men.
It was a guarantee against the newspapers said he was
b;e)ng
cording to the New York "Times"
motives and meanings of action
of June 2, the bill also contains the excesses of the particular rul¬ considered, and this
turne^ .put
there lurks the introduer that will
ing power. There was consider¬ to be the way he wrecked himself
authority for loans of $383,500,000
prevent state control of the money the
able indignation in this country and the Court. iltib
principal item of which is a
sys.em & from
performing -.the
when Charles Evans Hughes quit
We shall never forget th^time
$250,000,000 authorization for the
equilibrating function?
In short,
Rural Electrification Administra¬ as an associate justice to run for Roosevelt was setting about,.to
the market system of Adam Smith
The accepted
Presidency
of
the
United wreck the Court.
tion for; its largest program to the
failed because apparently it could
States. 4 He
subsequently
came story was that Bob Jackson
not bear the social responsibility
back to serve as Chief Justice and the greatest presentation in favor
The,Senate increased from $67,ihat was heaped on it. The weight
of the wrecking plan of
500,000 to $82,$00,000 a loan fund acquitted .himself well,;,.indeed,
anybody.
of

the

in

money

conducted.

economy

contemporary

;

-

■

responsibility

laid

now

is infinitely, heavier.

The past

has

for rural rehabilitation, with stress
on war veterans. It left unchanged
a

$50,000,000 fund to aid both ten¬

curious way of ants,, and

a

veterans : in

becoming

but there
cast

the

than 20 votes

were more

against

his

confirmation

Senate, because the Senators

did not like the idea of
had

been

a man

member of the

a

What Bob said was:

in

.

"The

:

court

court

generation

who

intruding into the ; present. The farm owners.
last economist to use Sir William
The
The bill further authorizes the resigning to enter politics.
Petty's phraseology of "cycles of use of $75,000,000 of customs funds Supreme Court was very sacro¬
dearth and plenty" was Malthus; for
the
Federal
Government's sanct in those days, not .that we
didn't realize they were human
and in the interval we were re¬ share of the school lunch
program,
peatedly told that the technology an increase of $25,000,000 over the beings but by common consent

needs

Well, | the

men

it."

on

Court

got

Bob's generation on it.
where it is.

!

men.,

•

of

Lpok.now
J
T^tr

■■

Booklet

JhjfY

qf

:.r?iWa

U. S. Postage

on

Stamps 1846—1946

we
realized that the mob which
superior to amount approved by the Housev,
Postmaster Albert Goldman/an¬
what earlier writers had devoutly
we, as a people, of course, are, nounced on June 3 the
issuance
The largest direct appropriation
had to have some final authority of a
if - somewhat irreverently •. called
revised edition of the^pffiqial
increase over the House bill was
to
which we could appeal and booklet
acts of God.
Our only problem
containing
descriptions
$10,500,000 for the development of
which we all respected.
was for the mind of man to over¬
and
illustrations
of
all
United
highways, roads and trails in na¬
The Great Roosevelt, among the States
come human
shortcomings. Mone¬ tional forests, raising the total to
postage stamps from the
other legacies which he left us, date of their
tary economics promised one an¬
introduction^ .jl$47
$36,714,222.
bequeathed a debunked and de¬ to March 31, 1946, including7pl*ite
swer to this final problem.
It is
I An increase of $3,000,000 over flated Supreme Court. That may
a
bit mocking that its first test
numbers and quantities
of
the House-approved $779,000 was be an
comes
accomplishment of which commemorative
and
during a cycle of dearth,
aiif(0spfiail
voted to the Forest Service for
his followers are proud.
Unless stamps. The advices add:
in which the money economy finds
j,,..
restoration of recreational facili¬
itself literally impotent.
they, belieye in mob violence, it
But it
The new stamp booklet isibeing
ties.
:■ ■r- '.'
"7$i is difficult to see just why.
serves to remind us that there are
issued to the public through:,the
The situation among the men
still factors in heaven and earth
office of the Superintendent, of
now composing the court has been
which are not dreamed of in the Parcel Post to U. S.
Documents at 30 cents per; 9ppy,
apparent to Washington observers with paper binding,
philosophy of the money economy, Zone in Reich
.
which)!in¬
for a long -time.
and which still lie in the "maze
They are no cludes the cost of
delivery^ All
Effective June 1, a limited one
of instinctive reactions of the in¬
longer
men
to
whom
anyone mail
orders
for
this
booklet
way parcel post service was estab¬ should have a
feeling of awe, or should be addressed as
dividual," and "the dim inner lished from the
foffows;
United States to of
respect. It has long been an Superintendent V of
world
of
social
standards
and
the United States Zone of Occupa¬
Documents,
motivations."
J -. tion, Germany, except the Ameri¬ open secret ".that they were fight¬ Government Printing.. Office,
ing among themselves, not just Washington 25, D. C.
To
us, as individuals
and as can sector of Berlin. In announc¬
./
.
men
disagreeing, but men who
students of economics, there are
ing this on .May 28 the State had no
respect for each other. It
no pillars of Hercules. No Amer¬
Department said in part:
*
has been a long time, too, since
ican college has yet carved over
.'■■■"
1 ?.
*k
This service is limited to ordin¬ lawyers have been able to advise
its door the motto: "ne plus ultra."
ary (unregistered and uninsured)
their clients as to what the high¬
We are still permitted to be stu¬
gift parcels not exceeding eleven est judicial branch in the land
dents seeking wisdom and pur¬
At its business session)(bflfd on
pounds in weight. Only one parcel might rule, For a long time, the
suing it, and finding it whether per week
June 6, the Chamber of Commerce
may be sent by or on observation of the more competent

of

had

man

proved

,

Chamber of Commerce

t

•

■

.

-

.

•

i

:

>

Approves Brilish Loan

in-

the

"Wealth
Marx's

pages

of

Keynes' "Treatise

concluding
annual
new

Adam

of
Nations,"
"Capital," \ or

adopt for

ends

individual's impulsive activities—
his maze of instinctive reactions.
vague

It

economic existence.

earlier is
prospectors say,
"money-making for the
you find it. We,
individual, business prosperity foi1
are

was

United Public Workers of .Amer¬

capacity - of state control of the
money system to make the equilib¬
rating adjustments required for
ed

the

(25)

:

3.8

3.2

The

rider is

COMMON STOCKS

Banks

4.8

3.6

strike

passage

monetary economics is the

relevant:

nation,

to

ment appropriations bill before its

major premise of contem¬

porary

or

suc¬

right

Government

tached to the

200

4.8

special advices from Washington

economy

cession of institutions charged with

the

OP

Utilities

4.5

to

in

economy,

against

tlje

(25)

3.6

prohibiting the employ¬

claim

Railroads
5.2

._

which

YIELD

,

The Functioning of State Control

social

money

WEIGHTED AVERAGE

(125)

function.

the state control of the money

the

MOODY'S

Industrials

by the Senate on June 1.
$598,737,735
measure
was
pased by voice vote, according to

of

of

y

ment of members of labor unions

creasingly unable to perform this

on

fluctua¬

A rider

tion—by reason of the empirical
fact that after
1914 it was in¬

made " America

the

yields in prior years see the following back issues!.of the
"Chronicle": 1941 yields (also annually from
1929), Jan. ll|#Hi1942,
page 2218; 1942 levels, Jan. 14, 1943, page 202; 1943 yields,
Ma^h 16,
1944, page 1130; 1944 yields, Feb. 1, 1945, page 558; 1945 yield?); Jan.
17, 1946, page 299.
\

Farm Bill Rider

the

by

Moody's Common Slock Yields
For

Not Strike Under

This pre¬

the social catas¬

tect themselves from these catas¬

own

our

Employees May

perform

T907 '

-

rather in the money economy
by
reason of its instability!
To pro¬

the

industry
shall not fail

we

definite service to

generation and to the genera¬

U. S.

the capacity of the free mar¬

ket

aware of

trophe; inherent

as

a

tions that

rates and

over

to the public debt.

•

;•••

validity of any theory de¬

vagaries of the money
over
economy, as ihey affecetd the re¬
the quantity of
money with refer¬ lationships of an intricately con¬
ence to the business
cycle. Both tractual society; and, in the end,
are
considered
primarily
(one the market was repudiated—or
might say, solely) with Reference
seems
to be in process of rejec¬
its control

use

,

The

own

zeal and

our

strong,

to render

circumstances, resuliing pends upon its major premise. To
war
finance, the magnitude Adam Smith, the major premise

from

>

worthwhile.":

If

remain

new

of the

•

others.

meanings of action, and from it
emerge the wavering standards by
which men judge what is for them

our

Smith's

of

Karl

of

Lord

Money." As
gold is where

on

as

students,

may

Director

resolution the

of the year's
prepared by the

of

Research

National Bureau—to
focus attention

of

the

"continue to

the large issues
concerning the production, ex¬
change, and distribution of wealth,
substitute
for
our

as

on

far

the
of

same

the

as

possible facts

or

for

parcels will be limited to

such essential relief items as non-

perishable
mailable

similar

foods,

clothing,

medicines

items

and

for- the

writing

or

other

relief

printed matter is

of

pro¬

hibited.
Each parcel must be conspicu¬

ously marked "Gift Parcel",
the sender must attach

a

and

customs

declaration in which the contents
and value of the

parcels are pro¬
perly itemized. The postage rate
per
,

pound
^

newspapermen
has
they could not under¬
stand why a really able citizen

Washington
been

that

should want to be

the Supreme

on

soap,

human suffering. The inclusion of

speculation, remain critical of
work, strive steadily to im¬ will be 14 cents
withfraction thereof.
it,
and
cooperate

prove

sender to

same

addressee. The contents

#

own

passage

report

behalf of the

or

it

fact that

from the

aside

Court,

paid $20,000 a year1 and carried

retirement

privileges.

has long since
few

years

iron

ago

Club

The Court

lost its dignity.
the famous

caricatured

A

Grid¬
Justice

Murphy

as

suit, in

skit entitled "Moon Over

a

Miami."

a

man

Sometime

in

a

later

bathing

another

of

the State of New York unani¬

was

organization

rebuked

in

by

a

man's

Washington

for

the

proposed

loan to Great Britain by

^adopting

from the): Com¬
Foreign Trade.) and
Harvey
Pike and John M. Schiff.KChairmen of the respective committes,
joint

report

mittees

on

Finance and Currency. H.

said

that

the

creased

loan

business

American

would'Laid

through

;i

in¬

exports resulting from: the

easing of international ,trade re¬
strictions
now
maintained^ by
Britain.

'

Other

action

justice

approved

mously

-

inform?t;on

v.3

chamber on
ap^eatk*-f in
"Chronicle" of June 6, page 3113.
the

by

the

British

state

r

concerning

Loan

3270

THE COMMERCIAL

FINANCIAL CHRONICLE
&
succeed if

<

Weighing and Interpreting Economic Trends
(Continued from first page)

over

more-than

quarter

of

enough

the

strictions

of

span

century—a
long
of time—a suffi¬

period

ciently protracted experience to
provide the basis for valid con¬
clusion. It embraces
monetary and
fiscal policy. It includes
the phe¬
nomena characteristic of that order

interferences

*

judicator

,

nomic

and

all

of

It

call

its

;

social

forms.

eco¬

comprehends

security—in

It

socialized medicine.

trade

of

governor

affairs.

what7 We

deals

with

It covers the

union movement as it developed in certain countries. There
in;/this body of clinic material
a store of facts concerning the ef¬

,

v

,

.

fects of each

one

of these individ¬

ually and all of them collectively
on

costs, prices, exports, imports,
.foreign exchange, distribution of

{; income,

productivity
ployment.,

r

.

and

Here at home there is

unem-

wealth

a

of material collected from

short-

a

$ er^experience, but withal long
enough to be significant, covering
much

Yet

/

.the

we

*

related

same

are

famine: this

subjects.
disposed to ex-

not

material

—

to

review

critically all the facts which this
-stretch/of experience can disclose

i

V—the / consequences,

the compen-

the

flow

of

international

that had

commerce

'

:sive tendency toward full employ¬
ment' throughout the entire first

30 years of this

^
'•

'

;

Century—exceptingvfor short periods of cyclical
distress very quickly abated
relieved..
Prior to the 30's
worst1

period

in

was

1921

•.unemployment rose to
X the employables.
But
I
i

span'.; of

18

completely
after "With

24

to

the

when

11.2%

of

within

" a

civilized

national
duced

frontiers

and
of

causes

one
wars

would

of

the

would

be

re¬

principal

cated. The 19th

Century, disturbed
though it occasionally was by
local and minor wars, was in ret¬
rospect what Justice Holmes called
"A brief period of calm snatched
from
the tempestuous
untamed
streaming of the world." • f
That the argument of Cobden
and Bright was confirmed by the
high court of subsequent history
Lord Keynes attests to in his "Eco¬
nomic Consequences of the Peace."
His description of the world that
is

was

accurate and

so

so

elegant

that I beg leave to remind you of
his language:

exist

.

;

until

simply

1930.

It

had

did

not

in

1931,
again in '32, again in '33, to 23.4%

V and

x not

never

rose

thereafter

did

it

fall

even in the boom year of '36

and early

'37 to the level of 1921

—until the war
.

came with its high
level of industrial activity and 10

to

14

million

young

men

were

Xi lifted out of civilian life into the
v-

armed

forces.

Stated

Have

differently,

tread

of

a

third

of

a

charac¬

unavoidably
changed so violently as to invali¬
date precisely the policies which,
among other things, produced one
of the rare periods of calm and
plenty in the history of mankind?
What
If

are

I

such

extent that normal output
been possible since early
last fall.
|

society

the facts in the case?

overburden

the

need

for

the

it

is

possible

too -early to judge
effects of a nation-?

wide maritime strike

industry, there

time,
and

are:

on

the steel

the

hands

if

iron

of

strike of

a

effective

of

steelmakers
at the:* docks.
How-f

loaded

ever,

were

seamen

the Great Lakes, ship¬
of coal and ore would be

ments

on

facts, it is not because I am indif¬
ferent to the need for interpreting

stifled, but a short tieup, accord¬
ing to this trade authority, would

them.

have little

For while it is essential to

know the evidence it is equally es¬
sential to know what it means. If

or

no

teriaL

effect upon the

I

press the case for facts, it is
not because I am unmindful of the

7

but

as a
,

months ended April

1946,

the rate of return on
property
investment f averaged
2.26% compared with a-rate of
return of 3.93% for the 12 months
ended April 30, 1945.
•
v i

Total operating revenues in the
J

irst four months of

1946

totaled

$2,432,814,881 compared with $3,054,808,819 in the same period of
945, or
erating

decrease of 20.4%; Op¬

a

expenses in the first four
months of 1946, amounted to $2,-

076,267,783
105,579,731

compared

with

$2,-

in the corresponding
period of 1945, or a decrease of

Sixty-four

.

The

American1 Iron

and

Steel

'ailed to
in

The

inhabitant

order

of

London

telephone,

by

—it

It

his

reasonably expect their early
upon
his doorstep;- he
at

the

same

moment

is

believe

with

because from this pas¬

from

Beauty"

delivery
could

I

vious week.

week's

This

operating rate is
equivalent to 1,341,200 tons of
steel ingots and castings and com¬
pares with 972,800 tons One week

Testament of ago, 861,800 ton^one month ago
dissent: Time and 1,648,500 tons'one year ago.
eateth away at many an old de¬
Electrical Production—The Edi¬
lusion, yet with civilization de¬ son Electric Institute reports that
lusions make head; the thicket the
output of electricity increased
of the people will take furtive to
3,741,256,000 :kwh, in the week
fire from irresponsible catch¬
ended June 1, 4946, from 3,941,words of live ideas, sudden as a 865,000 kwh. 4n * the preceding
gorse-bush from the. smoulder¬ week. Output ior^the week end-?
ing and of any loiterer's match- ing June 1, 19£6, was 11.0% be¬
splint, which unless trodden out low that for thep' corresponding
afore it spread, or quellel with
weekly period
year ago.
wield threshing-rods will burn
ConsohdatedjEchson Co. of New
ten years of planting with all
York
reports .system output of
last year's ricks and blacken a
168,100,000 kwfc.'lathe week end
countryside.
'Tis like enough ed June ' 2, 19^6,
^compared with
that man ignorant of fire and
153,600,000 kwhVfor the corre¬
poison should be precondemn'd
sponding weekrdf ;ll945, or an in¬
to sudden deaths and burnings,
crease of 9.5%.»Bocai distribution
but 'tis mightily to the reproach
of electricity amounted to 162,-

sage

morning tea in bed, the various
products of the whole earth, in
such quantity as he might see fit,
and

because

that, "Knowledge is power,"
with Plato that, "The true and the
good are the same."

could

sipping

is

Bacon

and

I

"The

must

~

by the same means adventure his
wealth
and

in

the

natural

resources

or

new

he could decide to couple

the

security of his fortunes with the
good faith of the townspeople of
any
substantial f municipality in
any continent that fancy or in¬
formation might recommend.
He

of Reason that she

climate

without

passport

save

000,000 kwh. for Jfie correspond¬
fit to rule must
ing week of last year, an increase
by flattery and of
6.2%.xXX
pretence, and so by spiritual
Railroad Freight1 Loading—Car
dishonesty in their flurried reign
freight for
confirm the disrepute of all au¬ loadings of revenue
the week endedftJune 1, 1946, to¬
thority—but only in sackcloth
taled 626,885 cars, the Association
can
the Muse speak of such
of American Railroads announced.
things.
who else
win

or

other formality, could dispatch his
servant to the neighboring office

without

knowledge

of

400,000 kwh. compared with 153,-

guide the herd; that minds

nor

could
secure,
forthwith, if he
wished it, cheap and comfortable
means
of transit to any country
or

cannot

to

were

power

increase

This

Two Opposing Codes of Human
*

,

Behavior

Only the most obtuse person, or
absorbed in the contemplation

one

was

cars

"(or 9.7 %

an

of

above

55,311

the

pre¬

ceding week and 211,001 cars, or
25.2%
below the corresponding
week

fori

1945. "

Compared with
periMKof 1944, a de¬
183,813( cars, or 22,7%,

the similar

of

crease

is shown.

Railroad

■'

the

I

class

earn

railroads

interest and rentals

first four months

Earnings

railroads

Class

I

States

important of all, he regarded this
state of affairs as normal, certain,
permanent, except in the di¬

permanent secular phe-

and

in American life.

rection

that

the

individual

is

and

must

be^the fountainhead of progress—

In

v

April

m

the

central

point

in

the

social

mated

rentals,
with

a

of

the

United

April, 1946, had an esti¬
deficit, after interest anc

of

ng week and 87.9% in the like
1945 week, according to the Amer¬

ican Paper & Pulp Association.
Paperboard output for the current
week-was 85% against 93% in the

preceding; week, and the corre¬
sponding week a year. ago. \
Business Failures Continue Low:

Although
declining
previous week,

from the

$21^09^300

comparec

net incqmer of $55,557,900

slightly
commer¬

cial and industrial failures in the

week ending June 6 continued to
exceed the 1945 level.
Dun

Bradstreet
last week

as

and

?

that 13 con¬
compared with 18

reports

failed

cerns

12

-

the

in

corrd-;

sponding week a year ago. This
represents the 15th week this year
that failures have been more
merous

than

in

the

nu¬

comparable

week. of •;;" ^X X
■

■

failures involving lia¬
bilities of $5,000 or more occurred
three times as frequently as small
Large

failures.

10

Numbering

the

in

week

just ended, these large fail¬
ures were
only 1 below the 11
reported both last week (and A
year
ago.
Small failures with
losses under $5,000 fell off from
7 in the previous week to 3 this
week, but, even at this low level,
were
higher than in the same

week last year.
•■
All except one

•

-

.1

*

.

of this week^s
failures
were
concentrated
in
manufacturing and retail trade.
Six
concerns
failed in each of
these

manufacturing
down

were
ures

were
.

as

little and retail fail¬

slightly; compared
corresponding week,
in

failing

were

There
ures,

a

last

failures

up

1945's

concerns

lines

Compared with

lines.

week,

with

'

X;

>

supply of the industry's raw ma-*

1

American history appeared not as
ri a passing cyclical: characteristic

30,

at the present

substantial stocks

in

ore

In the 12

an

has not

While

fundamental

of

and

;

-

interpretation must push
our destination, and the
light that is shed by knowledge
to

(Continued from page 3262)

.

their re¬ of
ephemeral abstractions in. an
•■'.X'V
X Century as though our future had ligion, language, or customs, bear¬
atmosphere of a monastic seclu¬
;
f been by some great cleaver dis- ing coined wealth upon his person, sion can fail to observe that there
/ sected.from our past—unemploy- and would consider himself greatly
are
abroad
in
the
world two
merit
on
a V scale
never
before aggrieved and much surprised at wholly
incompatible
codes
of
the least interference.
knowri
But, most human behavior—the one holding
in
accurately recorded
the

on

—

^

X arid

wise

us

of 1946,
Institute announced on Monday of
importance of improved technical this week the dperating rate of of which 28 were in the Eastern
"What an extraordinary episode procedures. But these are, I sub¬
steel companies having 94% of the District, nine in the Southern Re¬
in the economic progress of man
mit, mere instruments—the ma¬ steel capacity of the industry will gion, and 27 In the Western Disthat age was which came to an chinery of research.
be 76.1% of capacity for the week
end in August, 1914! The greater
If I urge the need for facts— beginning June 10, compared with
taper and faperboard Produc¬
part of the population, it is true, not derived from indiscriminate 55.2 % one week
Paper - production in the
ago, 48.9 % qnri tion
worked hard and lived at a low
inquiry and casual investigation— month ago and '90.0% one year United States for the week ending
standard of comfort, yet were, to
not disorderly and scattered ob¬
ago. This represents an increase of June 1, was 96.3 % of mill capac¬
all appearances, reasonably con¬
servation of economic phenomena 20.9 points of 37.9%" from tb^; pre¬ ity, against 99.2% in the preced-

suddenly without any 1 warning
whatsoever, without the slightest of a bank for such supply of the
evidence of an impending change precious
metals as might seem
*—■ contradicting
with
startling convenient, and could then pro¬
^•sharpness bur entire experience ceed abroad to foreign quarters,

V

%

the

teristics

prospective fruits and advantages;

it

'

unemployment

absolute security of property
of person."

eradi¬

be

deviations

minor

•

of

The State of Tirade

world

There¬

months

X'X.X;XXV-

dtsrilpgbintments will

times

>

enterprise of any quarter
of the world, and share, without
exertion or even trouble, in their

disappeared.
few

and

"

over
long periods of time the
be¬ sheer power of fact, and the weight

They argured persuasively
successfully that,
at least,

;;

sive tendency toward a reduction
of the unemployed and a progres-

At

v

our

character¬

so

satiohi and the exactions which
theseHpolicies have produced, be¬
fore: plunging headlong into them tented with their lot. But escape
was possible, for any man of capa¬
ourselves.
v
^
•v.
'
r'.-l"p.''--v'"
f •vf-:*/.
f f ffX city or character at all exceeding
the average, into the middle and
|p Unemployment Fluctuations
1
,Let me put the case in some¬ upper classes, for whom life of¬
what different terms: the unem- fered, at a low cost, and with the
:
ployment series in the United least trouble, conveniences, com¬
States is one of the most interest- forts, and amenities beyond the
X ing s£t of facts that has come to compass of the richest and most
my attention, it shows a progres- powerful monarchs of other ages.
*

>u

.

millions of people
lived within the three Empires of

and stable basis in relation to gold and
the to one another, facilitated the easy
should be organ¬ flow of capital and of trade to an
ized around the free market place extent the full value of which we
and .that among other conse¬
of -affairs in which the dicta of
only realize now, when we are
the State become the substitute quences if it were so organized the deprived of its advantages. : Over
for ; the market place as the ad- significance / bf ' nationalism
and this great area there was an almost

;

;

havior.

three hundred

but have the knowl¬

we

whichi to mold

on

dampen our enthusiasm, produce
road
is accumulated
tediously ► and ac¬
Russia, Germany, and Austria- discouragements.:**The
ized that period on which Heecher
Hungary. The various currencies, long, the load-is heavy, the way curately must ultimately guide us
is strewn with impediments. But to our goal.
has
written
so
authoritatively. which were all maintained on a
with

a

a»"

and

on

edge

Thursday, June 13,1946

more

were

;

both

numerous.

no

these
X?

Canadian fail¬

compared with 3 in the

previous week and 4 in the corre¬

sponding week of 1945.
X
further improvement,
order—the other that the State is in April, 1945~ according to the
Wholesale Food Price Index at
deviation from it as aber¬ the master of man's .destiny.; The Association of American Rail¬
Peak Level—After holding steady
rant, scandalous,- and avoidable. first
representing the views of free roads.: Operating Results in Apri
for two weeks, the Dun & BradThe projects and politics of mili¬
were affected bywthe coal strike
men in a free society—the second
street wholesale food price index
tarism and imperialism, of racial
XX which is, I believe, uncontestable.
symbolizes the views of those who and the railroad wage increases.
adyanced 1 cent to stand at $4.21,
In the first four months of 1946
i;. 'Why this Sudden amazing break and cultural rivalries, of monop¬ believe that men are not capable
the
25 xk -year ; high
estimated
deficit, after interes; equalling
X With past experience? What oc¬ olies, restrictions, and exclusion, of enjoying freedom.'
which were to play the serpent to
point touched on May 14. The
curred to produce it?
What hapThe struggle between the two and rentals of $6,000,000 compared
current figure compares with last
this
paradise, were little more becomes increasingly bitter and with a net income of $196,860,
X pened within the orbit of monetary and fiscal policy; of labor and than the amusements of his daily the issue will be won Or lost in 976 in the corresponding period year's $4.Q8, a rise of 3.2%. Mov¬
ing higher during the week were
wage
policy,; of taxation, of a newspaper, and appeared to ex¬ time not alone because of a partic¬ of 1945.
beans, peas, cheese, potatoes and
-Variety of other matters? What ercise almost no influence at all ular foreign policy to which we
Class I railrolds in April, 1946
are the facts?
What are all the on the ordinary course of social
a
net
railway
operating Iariibs, while declines appeared in
may
become
committed,
but had
and economic life, the interna¬
rye and steers. The index repre¬
v:>; facts?—
before,* interest
anc
rather because we prove to the, income
sents the sum total of the price
tionalization of which was nearly
world that the system in which rentals of $10,127,739, compared
:
The Free Trade Policy
per pound of 31 foods in general
complete in practice."
with a net railway" operating in
we believe, however imparied we
use.
Let me put another question.
."The delicate organization by
;Vv-::X'v';y4V':
; XXr-!";■
come
of $95,065y326 in April of
may have made it, will produce a
More than a Century ago Richard which these peoples lived
de¬ fuller
Wholesale
Commodity
Price
life—morally,
politically, last year. For the first 4 months
Cobden, John Bright, and their pended partly on factors internal
Index—The daily wholesale com¬
materially than the one against of this year net railway operating
to the system.
apostles, under the influence of
which
ours
is
now
thrown
in income, before interest and rent¬ modity price index, compiled tjy
"The interference of frontiers
Adam Smith, became the leaders
als, amounted to $118,834,374 and 1 Dun & Bradstreet, Inc., continued
sharp conflict.
in a crusade for the
reform, indeed and of tariffs was reluced to a
This we may the better do. In compared with $344,945,307 in the I its uptrend to a new peak level
the elimination, of the various re- minimum, and not far short of this we may the more certainly same period of 1945.
in the past week.
The index
'

nomenon

'

the

Much

experience was had in
XU Britain-except that 1922 was the
year. ..This is a statement of fact
same

of

and any

:

'

,

,

-

.

.

.




Volume 163

Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE

£
closed at 195.19
it

Compared

,1.

earlier,
time

>

•f

<

and

194.53

with

a year

177.30

about 15% above that of the

week

a

period

this

at

'^:7

ago.

that of the preceding week, it was

June 4, which

on

with

Sales of flour during the week
"?Were very slow and mills found it

increasingly

difficult

J, wheat despite

the further advance

Of IVz cents per bushel in subsi¬
dies paid on wheat ground into
flour. Production showed a steady
decline but nulls received some

products
umited.

of

encouragement by a late Depart¬
ment of
Agriculture announce¬

:

small

movement of

1

than

^

year agoj

and
i

of

despite

the

final

uncertainties

outcome,

volume

as

>

continued

in

uptrend
the

i

were

the

railroad and

settlement

bituminous

to

of

38-point rise .brought

a

was

21.45

recorded

wholesale

volume

;

this

,

last

1920,

year

dropped

Demand for carded

week

but

below
was *

that

line

during the holiday week except
for some spot releases of staple
print cloths.
.

openings,

Trading

was
-a
•

;

better tone in evidence

a

result

of

the settlement

the

as

Federal

Mills

were

four

in the market

weeks

diate needs.

Arrivals of foreign

that of

Board's

as

stocks

of March 30

of

apparel

were

total 422,000,000

a

perceptibly

year ago.

tising to

wools

or

more

gain

a

estimated to

over

The particu¬

41%,

est amount ever reported on that

;at this time.

worsted

out-of-town

July 1.

116.41

119.41

121.04

123.99

121.88

119.20

113.89

117.20

120.22

121.67

The Senate's extension measure
meets the major requests'of' the

served

as

a

A record number of

120.02

122.29

119.61

114.27

117.60

120.22

123.99

122.29

119.61

114.46

117.60

120.22

122.09

War

122.29

119.41

114.27

117.40

120.22

122.09

back to the House for

119.82

123.77:122.29

119 41

114.08

117.20

120.22

122.09

pected to be

119.82

123.77

122.29

119.20

114.27

117.00

120.22

122.29

119.82

123.56

122.50

119.20

114.46

116.80

120.43

122.29

125.84

119.61

123.56

121.88

119.20

114.27

116.61

120.22

122.09

126.02

120.22

123.34

121.88

119.00

116.41-120.22

122.09

119.00

113.31

115.63

119.41

122.09

119.61

114.46

120.43

122.50

117.80

120.63

115.24

119.41

113.70

117.20;

119.88

112.19

118.60

116.61

111,81

10248

105.69

>»'

,<•;

*

•

V1;, y

-

r

j

date.

.

Manufacturing

of

fabrics appeared to be steadily
increasing
and - some
women's
wear

ing

fabrics

up

were

said to be back¬

at the mills.

'Vr Wholesale

and

;4v

Retail

the

the

weather

holiday -and
in

arrived

(Based
U.S.

Bond*

Individual Closing Prices)

on

Avge.
Corpojrale*

Govt,

Corporate by Ratings*
Aaa /
A*
A
Baa

Corporate by Groups*
n.R.

p.u,

reflecting confi¬

*

by

taking

Igiven

by

manufacturers

*

Trade—

face

of. continued

conditions.

inclement

all

<

allotments
in

tight

Emphasis

the

2.71

2,50

2.58

2.73

3.03

2.85

2.69

147

.

2.71

2.60

2.58

2.73

3.Q3

2.85

2,70

2.73

3.03

2.85

2.70

2.59

3.03

2.85

2.70

2.60

"

•,

,

1.47

3

2.73

2.72

-2.50

2.59

2.74

2.72

2.51

2.58

2.74

3.03

1.47

,

2.59

147

.

2.50

1.47

——

2.71

2.71

2.50

2.58

2.73

3-03

Stock

3.03,-

,

,

2.85

2.70

2-60

-2.84

2.70

2.60

2,84

3.70

2.60

2.84

-

Exchange Closed
2.71

2.51

2.71

2.58

2.52,

2.73

2.58

2.73

*2.58

2.74

2.50

2.72

3.03

2.70

2.60

3.03

2.84

2.70

" 2.60

3.03

,

2.84

2.70

2.60

year

ago,-

same

week

according to Dun &

Brndstreet, Inc., in its weekly re¬
of trade. Early buying for

view

Father's Day and heavy purchas¬

ing of wedding and graduation
gifts were insufficient to raise
.

grade

iwas. noted in
;

Bank's

-

index,

the weekly period

increased

period
with

an

figure)

33%

last

This

the

,

the

(revised

preceding

week.

For the four weeks ended June
1,

1946, sales

rose

by 43% and for

tail food sales fell slightly below' the
year to date by 32%,




same

compared

increase of 38%

in

City for

numerous

other

,

points «.s upon
reached,

.

which agreement must be
and

the

Senate-House conference

committee, ^consisting
of»v seven
Senators and seven Representa¬
tives, has until June 30, when tlje
present law expires, to adjust all
differences and persuade Congress
to accept their proposals. The As¬
Press

outlined

the

fol¬

lowing as the problems confront¬
ing the joint committee:;./fe;
£;
Length of Extension: The Sen¬
ate

voted to continue the draft
until May 15 next; ihe House un¬
til Feb. 15 next.
;
<
"
'

2.51

2.58

2.72

3.02

.2.83

2.69

260

2.51

2.57

2.72

3.00

2.82

2.68

2.6C

Age of Inductions: The1 Senate
by a 53 to 26 count voted, to

2.70

2.49

2.59

2.73

tinue

.

3.00

2.83

2.63

2.60

2.46 ;

2.56

2.69

2.96

2.79

12.64

2.57

2.65

2.46

2.54

2.67

2.94

2.77

2.64

2.56

5-—

134

2.65

2.46

2.54

2.67

2.93

2.77

2.64

2,58

1.36

2.66.

2.46

2.54

2.68

2.94

2.78

2.64

1.35,
1.34*,

2.66

2.47
247

2.54

2.68

2.95

22

,

...

15_,^—

'»1.34

-

2.66

,

2.54
2.53

' 2.69

2.48

2.56

'

2.69

2.48 /•'

2.67

2.69

1.34k-j'jrajBfl ■*'
1—'-—

"eb.

21—

1.33

2.67

2.49

'an.

25—1.31

2.70

2.50

1946—

1.51

2.77

1.31

2.65

2.45

1.60

2.87

>

2.94

f

-

2.80

P^2.93}

2.59

2.79' & 2.64

3.55

v

2.64*

¥2.81

2.54

^2.63 ,rk'*2.M

2^4

2.82

2.64

2.55

2.64

2.55

2.56

2.70

3.94

2.83

2,59

,

2.70

2.99

2 87

Pay Rises: The Senate,!wrote
into its bill pay rises for enlisted

2.55

grades

2.78

3.05

2.93

2.78

2.62

2.93

2.77

2.63

2.53

for buck privates to smaller .boosts
for top sergeants and correspond¬

2.87

3.30

3.03

2.89

2.82

3.07

3.60

2.68

'

3.05

ate's,

2.70

2.61

1.82

a
halt to teen-age
inductions, t The top draft age in
the House bill is 29; in the Sen-

2.67

2.68

2 Years Ago

June 10, 1944-

tally ordered

2-66
1

1 Year Ago

1945-

con-^

inducting 18 and 19-year^
olds; the House by a 195to 96

2.53

2,58

1946——

2.72

3.41
2.97
2.79
♦These prices are computed from
average yields on the basis of one "typical" hond
coupon, maturing in 25 years) and do not purport to show either the
average
evel or
the average movement of
actual price quotations.
They merely serve tc
illustrate In a more comprehensive
way the relative levels and the relative movement
,>f yield averages, the latter being the true picture of the bond market.

3¥4%

,

NQTE-~The list used in
compiling the
01 the ""Chronicle" on page 2508.

,

averages was given In the Nov.

ssue

22, 1945

'

\

..

•>.

,

ing

only,

ranks

ranging

in

the

from >50%

other

services';

the House refused to put
pay rises
into the drafc bill, but voted in

separate legislation for rises rang¬
ing from 50% for buck privates
to 10%

for five-star generals.!"
j')

Induction
ordered

holiday:

The

moratorium

a

ductions

prior

to

House

on >

Oct.

all

in¬

15;o

The

Senate turned that proposal down.
The two branches

Electric

Culpuf for Week Ended dene 8.1946

94% Below That for Same Week a Year Age
The Edison Electric

mated that

the

was

Institute, in its current weekly report, esti¬

production of electricity by the electric light and

industry of the United States for the week ended June 8, 1946,
3,920,444,000 kwh., which compares with 4,327,028,000 kwh. in the

corresponding week
ended June 1, 1946.

a year

\

•

3,741,256,000 kwh. in the week

The output for the week ended June 8, 1946,

9.4% below that of the

was

ago, and

week in 1945.

same

-

Major Geographical Divisions—

June 8

England

'

Junel

'.Vi

0.3

Vest

Industrial

Southern

.

—,

—

12.5

0.5

12.0
12.1

Slhcrease, "

10.4

'§7.3
9.8

9.4

Total United States

11.0

To

,

2.5

.

1946

March

2

4,000,119

March

9

3,952,539

March 16

3,987,877

4,017,310

March 30

3,992,283

April 6__

3,987,673
4,014,652

April 13—-,,—,
April 20
;
April 27

4—,^.-,,

3,987,145
3,976,750

.

f;;vl94frf

% Change
Under 1945

4,472,110
4,446,136

i

—

—

—

4,415,889

4,397,330

3,939.281

—

4.377.221

18—
;

3,941.865;

June 15

—

—

June 29—,

—

4,329,605

3,741,256

1_
8

4,203,502

3,920,444

4,327,028
4,348,413

4,464,686
4,425,630

1,538,452

9.3/4,400,246
8.7
4,409,159

1,514,553

1,480,208

1.702.57C
1,687,229
1,683,262
1,679,588

7.8

4,408,703

1,465,076

1,633,291

7.7

4,361,094
4,307,498

1,480,738
1,469,810

1,696,543
>

4,344,188
4,336,247

1,454,505

.1,699,822

1,429,032

7.3
9.6

9.9

4,353,351

1,709,331

'!•■

9.1

4,233,756
4,238,375

1,435,731

1,688,434
1,698,942
1,704,426

4.245,678

1,425,151

1,705,460

—
—

•

8.8

1,436,928

9.0

4,291,750

1,381,452

1,615,085

—11.0

4,144,490

1,435,471

1,689,925

—

—

9.4

4,264,600

•

-

-

1.441,532

4.287,251
4,325,417

4,358,277
—

1929

;

1,537,747

—10.0

4,302,381

May

—

—

4,332,400
4,411,325

4,011,670

1932

.--11.1

—

4,321,794

3,910.760

May 25™

of

eighteen months of

A

prohibition

more

than

men.'^"*^ '
apiv. in¬

against

ductions that will

give the Army

1,070,000

men

by tJuly

1, 1947.

>

benefits specified in the wartime
tin-

.

..

conferees

Reported

are

to

on

all

points,,of dif¬

ference with the exception of the

provision to draft teen-agers.'

1944

—10.6
!

4,397,529
4,401,716
4,329,478

May 11—

June

limit

:

To

■

June

of

•':J

v;

Week Ended—

May

A

service for indue.ed

compromise

13.4
;

,

DATA FOR BEQENT WEJKS (Thousands of Kilowatt-Hours)

.

induction

expect little difficulty in reaching

3.6

2,0

15.1

17.5

3aclflc Coast-.

against

fathers^ regardless^ of aget.r-/bf>/''f';

The

14.4

.

112.9

.

bills:

3.7

9.4

14.1

ban

ini/virtual

are

these provisions of

on

separate

draft act.

1.6

5.2

15.1

,

.4.0

States

Rocky Mountain

1.5

5.0

Central

im»U

May 18

3.3

Middle Atlantic
Central

Way 25

,

their

I' Continuation of re-emplo,yment

PERCENTAGE DECREASE UNDER SAME WEEK LAST YEAR
I^
"
win
iM.m
Week Ended)
•

r

agreement

A

power

June 22

^

from

2.70

March 23—.

Re¬

to June 1, 1946,

above

year.

/

department

store sales in New York

of

previous week. Demand
for staple items increased, though,
the supply of some items had not
eased enough to affect sales vol¬
ume during the week.
/ Although
dollar volume of re¬

--*

to ;Wash¬
ihenAssoci-

1.43

Mar. 29—

textile

According to the Federal

serve ;

volume the past week above that

the

•

is

according

2.71

2.67

merchandise

the weelc. ;,

over

< It

1.44

1.35

June 11,

batde

1.49
—

18^—1.38

Sigh

goes

what*'is ex^

provision;

advices

sociated

*

,

12——

sections of the jstandards, with pronounced inter¬
country, retail volume last week est in better
a'

2.59

2.50

Apr. 26—

many

exceeded levels of the

2.59
'

8—Stock Exchange Closed
147
2,71
2.50

3

quality

on

Indus

1.47

_

10

Vew

Week

trade
.

here

dence in the prospects of good fall

Despite the closing of many stores
over

past

buyers

,t

,

MOODY'S BOND YIELD AVERAGES

now

i

/

ated Press on June 6, thatMa com¬
promise may be effected, permit¬
ting drafting of 19-year-oldSiand
exempting those of 18. There are

""V •

,

' y

'

*

ington

114.27

121.25

122.50

and

bitter

a

draft

anticipated,

124.20

112.56

Department

teen-age

123.12
v

„

-

121.88

-

•.

123.99

112.19

*ow

extension expires

emergency

123.99

107.62

rv

ing

The presently exist¬

120.02

117,40

,

original bill.

119.82

May 31
1.43
:
24—1.48
147

worthy barometer of retail trade

pounds, the larg¬

121.04

l

1.

than 1,500,000. lines,

of

121.04

119.41

115.63

in¬

ended June

larly heavy rise in retail adver¬

ending May 24, as against 8,636,400 in the preceding week. Com'imercial

increased

119.20

110.61

113.12

119.82

••

allot¬

>

week

116.41

113.12

118.40

119,00

of

Retail trade in New York last

apparel wools at the three lead¬
ing Eastern seaports fell to 5,"095,190 pounds during the week

112.75

118.60

121.25

120.84

June 1, 1946,
by 36 % and for
to date by 26%.

the year

118.60

121.67

115.63

sales ' increased

mesic wools to cover their Imme¬

121.46

123.34

122.93

ended

for small lots of foreign and do-

122.92
122.92

6-———

rail and coal strikes.
Scarcity of 1946, increased by 31% above the
wanted types of foreign wools cre¬ same period of last year.
This
ated a demand for fine half-blood :compared with an increase of 34%
territories * and7' bright: fleece in the preceding week. For the
wools.

118.80
119.00

121.46

•

of' the

121.04

121.04

117-60

:

extension

119.00

119.00

123.45

■*

months'

116.22

116.20

1946—

j.

nine

121.04

and
fort only a

groups

112.56

117.60
114.46

u

addition

112.56

U9.00

1

Reserve

dex" for the week

119.00

the ;;measure

118.40

125.80

!0—

ments in many cases below those
of last year.
There were acute

the

of

116.22

of

teenage
provides

118.20

125.86

June 11

Boston

the

in

112.56

in

-

the

121.46

1946—

shortages in the supply of some
wool- food items.
market
continued
slow
in
the
Department store sales on a
past holiday week; although there country wide basis, as taken from

.

118.40

version

121.46

Daily Averages

moderately

reporting

121.46

proved
exempts

123.13

120.02

O

121.25

t

-

122.92

118.60

126.28

*

a year ago.
A large number of
buyers attended the Fall apparel

gray cotton goods-was noted but
little ; selling
activity occurred

.

slightly

121.04

2 Years Ago '
,Jun? 10, 1944,;

above :the post-holiday period • of

ago

119.00

126.28

<

the 25,42 average for the calendar

•

116.22

119.00

122.71

week

and
Represented the highest level since
a. year

112.56

1946__«.

6ow

Day celebrations
shortened the business week, total

price to 22.82c.
.sharply, up over the

This
:

118.40

116.02

1 Year Ago
June ,11, 1945-

*As: Memorial

the May 15 parity

123.13 i 121.46

Ian. 25—

strikes, the unexpected sharp ad¬ 2,4% above that of the correspond¬
vance
in
the
mid-May
parity ing week a year ago. Regional
price, and an improvement in the percentage increases were: .New
Outlook for
export trade.
Crop •; England 13 to 17, East 26 to 30,
progress was still unfavorable as Middle West and Pacific Coast
frequent rains and cool; nights 17, to 21, Northwest 23 to 28,
hindered' growth
and
caused South 18 to 22, and Southwest 14
fields to become grassy; Anounce-* to 18.
ment

4—

121.04

Jigh

the country
from 20 to

be

119.00

112.56

125.74

21——.

noted;

estimated

was

116.22

118.40

125.92

—-r-'

Camping equipment and
outdoor cooking items sold
increasingly large volume. De¬

Retail volume for

of

•'112.56

118.80

125.77

8

•

coal

118.20

121.25

5^voted

May 15, 1947, after ap¬
proving, the day before, by'a vote

121.04

121.46

June

on

of 53 to 26 the conscription of 18and 19-year-olds.
The House-ap¬

121.04

122.92

Senate,

until

125.61

15

,

••

119.00

119,00

119.61

22

price control legislation in Wash¬
mand was; high for housewares
ington. Trading volume was mod¬
erate with a tendency to broaden and home appliances, with im¬
^toward the clos^ of theweek;Un* proved quality in; many house¬

deriying factors In the continued

116.02
116.02

125.30

18_n
5

home

wares

112.56
112.56

119.00

what
in

118.40

124.33

mand and stocks improved some-'

to

121.25

118.20

123.83

de¬

brisk

112.56
116.02
119.00
■'■>:.'x, <■;

ice

123.99- 118.80

12

Furniture,

in

'

,

121.25

124.14

—

Mar. 29—

especially the garden and porch
variety,

a

appreciably;

'

i

119.20

121.25

124.49

.,

raise; sales

not

118.40
v>

116.02

The

69 to 8 to continue Selective Serv¬

Indus

121.25

3

«

radios, washers, refrigerators,
automobile supplies in the
stores did

112.56

P. U.

123.13

Apr. 26

attire

low

were

121.46

Exchange Closed

123.99

17

*eb.

retail

pending

of

stocks

118.40

R. R.

123.13

10

and

firm undertone and values again
rose

24
v

A slight easing in the quantity

,

*

maintained

May 31™_™

under

Shoe

123.13

Baa

118.80

Stock

ago.

'

markets

118.80

Corporate by Groups*

A

123.13 :121.46

V \

118.60

many sections of the country, but
volume remained above a year

;

Aa

Draft

Teen-Age Provision ;

\

123.13 ;

way.
Camping
equipment,
evening
and cotton dresses sold

gowns;

Aaa

--V.;4*v-X Yr

118.80

beach

i well.
:

*

Cotton

well

were

wfreat continued
supplies in¬
creased almost 6,000,000 bushels in
thd past week; ' Corn planting^was
-jeportedi about finished in; most
sections with germination said to
good.
Government r buying
^cohitoed to hinder^any accumu^
lation of lard and pork fat. Mar¬
ket receipts of hogs' remained
comparatively light with average
weights running considerably less

%"'aW *

3271!

Measure and Restores

'

118.80

,

visible

are

Yields)l''.-;.•; y.;,-yi77,7f'

Average

Exchange Closed

summer

summer

'

Corporate by Ratings*
7

averages

!
BOND PRICES

118.80

124.02

sold as Father's Day
Promotions of all types of

men's and women's

new

and

grow

rate*

124.02

items

gifts.

yield

1

Corpo-

vegetables

for

demand

-

bond

»•

Bonds

June

Straw hats
sporting clothes
for
men
in heavy demand and many

and

-

to

W.

Govt.

>

averages

extremely

and

and

•

already present.

were

Very quiet, with trading in fuf tures
confined largely to oats. The
-

with

suits

replaced

from this year's
crop in time to meet future export
requirements.
Grain markets on
the Chicago Board of Trade were

i

—r

Daily

generally, were high.
'
Men's suits and haberdashery
bought in large volume last
week

f furnishing domestic flour needs,
be

fruits

prices

on
■■:>

Stocks and sales volume

fresh

bond

MOODY'S

were

ment that it will lend wheat for
i to

continued,

computed

fiven in the following table.

ail bakery volume Was not appre¬
ciably v changed;'^ The supply of
meat, / butter, 7!$nd other ; dairy

obtain

to

Moody's

operations ? and
increased
buying pressure resulted in wide¬
spread bread shortages, but overing

ffipi ^

>'

Moody's Bond Prices and Bond Yield Averages Senate Votes

same

Reduced mill¬

a year ago.

'

1,440,541
1,456,961

1,702,501
1,723,428

4,327,359

1,341,730

1,592,075

1,699,227
-

Moodys Daily
Commodity Index
Tuesday, June 4, 1946

i

-a—.,

Wednesday, June 5

Thursday,

Friday,

June

Saturday,

Monday,

June

June
June

284.1

6

284.0

1

7_

:^!285.i'

8—

285.2

10™__™

286.0

Tuesday, June 11
Two

weeks ago,

Month ago,

285.2

May 28__

_L_;. ' 280.4

May

273.1

Year ago, June 11__
1945

High, Dec. 27
Low, Jan. ■

1946

High,

Low,

June

Jan.

284.1

2

257.5

wj.fr;265.0
252.1
286.0
J 264.7

4„™™—™w.

Thursday, June 13, 1943

FINANCIAL CHRONICLE

THE COMMERCIAL &

3272

of 1945,

promises right now, and there

the calendar year

mains

ended June 2, the soft coal output was 11,132,000 tons, During
through June 1, approximately 185,490,000 tons of
soft, coal were mined, a decrease of 25.9% below the 250,330,000 tons
mined in the comparable portion of 1945.
: ".V. '-'v/"\
' The output of Pennsylvania anthracite during the week ended
engineering construction. volume in continental United June 1 was estimated at 749,000 tons, compared with 1,014,000 tons
in the preceding week, and with an output of 1,105,000 tons pro¬
States totals $ia2,lob,000 for cae week ending June 6, 1946 as re¬
ported to "Engineering News-Record." This is the highest since the duced in the comparable week of 1945, ended June 2. The hard coal
Nov. 12, 1942 weekly volume which reached $304,000,000. This vol¬ miners did hot return to work after Memorial Day, causing two days'

Civil

Engineering Construction Totals,
^
$182,16tf,®S3fcr Week, Highest Since Nov., '42

re^

a
tremendous backlog of
tonnage which has been accepted
but on which no delivery prom-i
ises have yet been made. Most

of

the

Icffjl

third

about

quarter—which is

two

weeks

devoted to

catching

arrearages.

current
through June 1, cumulative output of anthracite was

production before the anthracite strike began.; In the

up

on

current

It is probable that

steel orders

new

still
away—will be
no

be accepted

324% above the corresponding
weekl ofi'last year and oi% aoove the previous four-week moving
average. ?-The report issued cn June 6 continued as follows:
j
J Private construction this week, $119,838,000, highest since March

estimated at $25,827,000

of

000 tons mined in the

above last week and 796% above the week last
construction, $62,330,000, is 47% above last week and
than ine week last year, i State and municipal construbtfoil, $53,590,000, 45% above last week, is 489% above the 1945
weekU Federal construction, $8,740,000, is 61% above last week and

1 to May 20.
> The estimated production of beehive coke in the United States
for the week ended June 1, 1946, showed a decrease of 1,600 tons
when compared with the output for the week ended May 25; and
was 117,400 tons less than for the corresponding week of 1945.

backlog being pushed off into the
opening months of next year.

lost

ume' isi'l54% above the previous week,

calendar year

30; '1930,'^is 307%

the week last year.
•
..
r:
Total engineering construction for the 23-week period of 1946
records'^'cumulative total of $2,258,885,000, which is 210% above
the»1otal' for a like period of 1945. On a cumulative basis, private
comrfMction in 1946 totals $1,449,388,000, which is 609% above that
57 %3 below

ESTIMATED

and

-total ^1945.

'

$257,5i0,C00 dropped. 39 % below the,
•
1
•
•
'
I

29,412,000

62,330,000
Municipals53,590,000

42,443,000
37,028,000
5,415,000

_

_

8,740,000

■

"

§May 25,

2,024,000

.

1,921,000

1,448,000
\

'

June

-

June

L :■

5,
1937

25,827,000

21,451,000

24,810,000

973,000

1,061,000

24,793,000

20,593,000

23,570,000

10,600

126,400

1,258,100

£,503,600

1,606,400

1,014,000

719,000

Beehive cokeUnited States total—

9,000

washery and dredge coal and coal shipped by truck from authorized
tExcludes colliery fuel. (Subject to revision.
SRevised.

•Includes

operations.

first

back opening
year....
of

ment

June

2,

1945

1,105,000

749,000

of

and this

next

1946

>

most

of books for
Significant develop¬
ment is subsidizing by the govern¬

:

-Calendar Year to Date-

j

1945

;

COKE

through

into next year are inevitable
causes sellers
generally to

overs

,

•

June 2,

:1946

(Commercial produc—

a

substantial

sheet

tonnage purchase for the five

bar
non-

integrated sheetmakers.
This is
the first time in history the gov¬
has

ernment

subsidized

steel

a

purchase.
"A
further
complication
is
threatened in the maritime; strike
June

Steel Operations Recover

classified construction groups waterworks, sewerage,
highways* earthwork and drainage, public buildings, commercial
buU$qgs and industrial buildings and unclassified cbnstruction re:.Corded( gains this week over the previous week. Eight of the nine
clashes,)recorded gains this week over the 1945 week as follows:
waterworks, sewerage, bridges, highways, earthwork and drainage,
pul$c ipiiildings, industrial buildings and commercial buildings.
h

Week Ended'
1946

'Total incl. coll. fuel

f'J^^the

■

June2,

tAverage based on five working days.

(In Net Tons) •

,

t June 1,

29,606,000
9,095,000
20,511,000

Fubli tP* Construction

SFed&al

.

„

13,379,000

—.

'June 1,

June 2,

order

half next year has canceled all
these commitments, in view of the
confused outlook.
Heavy carry¬

hold
»

6-7-1945

5-30-1946

,

119,838,000

Private! Construction

t740,000

—

shipment

1945
1946
l»4o
11,132.000 185,490,000 250,330,000

1946

7,950,000
1,325,000

1947, with part
accepted

next year and one mill which had
booked stainless steel orders for

—Jan. I to Date—

May 25,
<

present

"With third quarter only about
fortnight away producers gener-«
ally have not opened books for

.

ESTIMATED PRODUCTION OF PENNSYLVANIA ANTHRACITE AND

(fivedays)
$42,985,000

TotaPU. S. Construction—

average-

:•—

(fourdays)
$71,855,000

^

1946

3,700,GOO

'Subject to current adjustment.

23-week

(fivedays)
$182,168,000

> V-\

v

'^JSthte^and

Daily

Penn. Anthracite—

.

.

June 1,

■

Bituminous coal & lignite—

Total, including mine fuel—

for the current week, last

Crvil engineering construction volume
weekrtMrid the 1945 week are:
,(U
6-6-1946

Net Tons)

Week Ended

::V.^:vV• :*..£•

date, is 428 % above 1945.

fmiMcipal construction, $551,987,000, to

Federal* construction, ^

(In
,

the

a

PRODUCTION OF BITUMINOUS COAL AND LIGNITE

:

54% greater than the
of 1945, whereas state

U94$P Public construction, $809,497,000, is
cumulative total for the conesponding period

tons, an increase of 20.4% above the 21,451,comparable portion of 1945. In 1945 the hard

UNITED STATES

'

for

until sometime in

coal miners were out on strike from May

year. 'Public
111'% greater

can

More Lost Ground-

15, as stoppage of export
movement and possible rail em¬
bargoes against shipments to tide¬
water would have

Scrap Shortage Critical—Mills Sold for 1S46
Surpassing even the most optimistic predictions made for steel
the industry this week has raised its ingot rate 20.5 points
of rated capacity.
Thus from a low of 44.5 % during the
last week of the coal strike, the raw steel rate has climbed 33 points
in two weeks.
Indications are that unless scrap shortages interfere,
the rate next week may bound beyond 85% of capacity, according to

an

adverse ef¬

schedules. By-product coke
manufacturers along the Atlantic

fect

on

recovery,

coast depend

to ,77.5 %

ments

largely

coal ship¬

on

coastal; vessels
and
should this traffic be stopped coke
by

production would be disrupted in
that area.
Fuel oil supply also
Age," national metal-^fmight be affected by interference
working
paper,
which
further into production in order to relieve with coastal shipping.
^23-week period of-1946 totals $613,059,000, 19% greater than
Bale
states in its issue of today (June the current nail shortage.
"Pressure for tonnage is not
,836,000, reported for the corresponding period of 1945.
ties were boosted $4 a ton, and
13), in part as follows:
quite as strong as earlier in the
S
this action is expected to step up
9?
"The one factor which could se¬
year, though far in excess of sup¬
production and to some extent re¬
ply, and this is expected to con-;
riously retard the unprecedented
lieve a serious shortage in the tinue for weeks.
't—XI
'"
:
recovery
in steelmaking is the
critical
"April pig iron production,, be¬
scrap
shortage
at
the agricultural regions.
The action of the Civilian Pro¬ set
by strikes in the industry, to¬
larger midwestern and eastern
duction Administration in insti¬ taled
steel producing, centers which has
3,613.560 net tons, compared
wholesale commodity price index compiled by The National
tuting a self-certification system with 4,423,916 tons inMarchr'Suf¬
already held the brakes on Higher
Fertilizer. Association and made public on June 10 advanced to a
which -will
give ; preference to ficient proof of the great shortage
^ne^hjigh^level hi the week ended June 8, 1946, when it reached production during the recovery housing, agricultural and ware¬ of iron for steelmaking and for
U4$5(fi]om 148.0 in the preceding week. Since March 2 when the up- period.
house needs is expected to allevi¬
foundry use is found in the fact
"Had ample scrap supplies been
,w^ra. trend began, this index has advanced in the 12 of the 14 weeks
ate the tight situations in these
that in four months this year pig
Fnd .it th'ps risen 4.7% during this period,
A month ago the index available, steel producers would fields. Whether or not the farm
iron output totaled only 11,829,592
"stoca at 145.8 and a year ago at 141.6,' all based on the 1935-1939 not have been forced to place such
machinery; field will benefit rests tons, compared with 19,521,211
complete dependency on the re¬
average a-; 100.
The Association's report continued as follows:.
upon the duration of strikes at
tons in the corresponding period
sumption of blast furnace oper¬ two
Th^ sharp advance in the metals index was primarily responsimajor farm equipment pro¬ in 1945.
~
mm&ie risC in the general index during the latest week. This rise, ation and could have raised their ducers' plants. The principal prob¬
"Movement of Lake Superior
ingot output to a point this week lem
of
other
farm
equipment iron ore is far below that of re¬
iwlRf&H00^ the metals index to a new high peak, was due to higher which
might have seen the indus¬
plants is the securing of compo¬ cent years, total shipments to June
quo^apons for linished steel, copper and lead. The foods index also
.adyan^d to, artew high peak with higher prices for cheese and potatoes try back to pre-coal-strike activ- nents from suppliers rather than 1 being only 4,346,017 gross tons,
ity. '
Th^.m^ies^^dex showed a further rise reaching a new high level.
steeU::;^;^ "
compared with 18,403,277. tons to
"The
jirpductSivgrcuo>,declined fractionally. The cottori: sub¬
question
of ^ increasing
The American Iron and Steel the same date last
year. This is a
New Capital

capital for construction purposes this week totals $18,580,000^ and is made up of state and municipal bond sales. New capital

"The

Iron

•

Nafiottal Fertilizer Association Further Rise in

'

Commodity Price Index

Siiafe?'

.

advanced sharply to a new peak but this rise was more than

group

cffse^y the decline in the grains subgroup due to the sharp break
rj^jprices, and the decline in the livestock subgroup because of
.lowe^quotaticns for live poultry. ; Rye prices declined because of the
pPA,deeding which became effective June 1. The remaining groups
of thl index were unchanged,
| i v >
in

and
declined;

■During the week eight price series in the index advanced
■three declined: in the preceding week 10 advancd and two
in Jhfi t?,econd preceding week XI advanced and two declind.
,

•

,

,

f>

WHOLESALE

-:

Compiled

bv

The

COMMODITY

PRICE INDEX

Fertilizer

National

Association

Week

Ih'icx

££

•>'

Jun. 8,
1946

J

Total

Group

scrap

■v

Year

Month

Week

AgO

Ago
May

Jun. 1,

Cottonseeii

4^11

SSShi-r^:.

Qll.:.r

Farm Producis^—.

:

1946

1945

146.8

144.5

143.9

147.4

Fats and Oils..

147.4

147.4

145.2

163.1

163.1

163.1

163.1

plea

for a moderate
price rise and others would
to pay more for scrap
to an increase in

recourse

prices, provided additional
supplies could be obtained.

More
;

Jun. 9,

11,

1946

147.4

Elrifc

scrap

steel

Latest Preceding

Each Gjcpup
Bears to the

posing the
be willing

1935-1939—100*

-tfdfcib

v

Some steel producers are not op¬

without

.

WEEKLY

-SsY/

price ceilings is coming to a
head, but the scrap trade and in¬
dustry consumers are divided as
to
whether
an
increased
price
would
bring in more material.
scrap

serious,

and reflecting

which

condition

occurred

year ago.

made

o®

'

'

'7.j

162.4

162.9

131.4

130.8

138.6

138.6

134.5

133.7

scrap

167.1

166.7

157.3

minds

the total supply of

/Textilesi^.,^.^—
Metals:

•

117.9

108.9

167.8

155.4

127.5

127.5

125.9

118.2

118.2

118.2

118.3

119.8

119.8

119.8

119.9

105.8

105.8

105.8

148.5

148.0

145.8

122.2

117.9

;

167.8

167.8

127.5

Fertilizers...

'

:

Fertilizer materials

:

6.1

-—_rf„

pA;.5:V

J

for?

S-S—

Building materials
Chemicals

and

drugs

Farm machinery.

os

'indexes

■

.

;

.

104.8

for

more

and

I

141.6

more

"Steel"

the memory of past
drives leaves doubt in some
as to the ultimate gain in

obtained.

follows:

nails

steels

are

single customer of the steel indus¬

price action on
and bale ties.
advanced 4%

steels,

shortages

growing worse instead of better.
The ■ automobile industry, largest

"The OPA this week has taken

Alloy

"Steel

try,

were

more pessimis¬
forecasts a total pro¬

is becoming

tic and

now

duction of cars and trucks this
but the latest order
year of less than 3,000,000 units.
wipes out this increase and re¬
"Tr-frrnrnrr-—
—
—
This is in sharp contrast, the mag¬
places it with 8.2% advance. Cus¬
azine says, to earlier guesses of as
tomers who have received ship¬
ments of alloy steels at the old high as 6,000,000 units this year.
Next year also will fall far short,
Production of both bituminous and anthracite coal was below prices will be billed for the dif¬
according to Detroit guesses, and
jduring the week ending June 1, owing to strikes and the ference retroactive to Feb. 15.
will wind up somewhere around
"The increase in nails, the gov¬
obser\^nce of the Memorial Day holiday, Oscar L. Chapman, Acting
4.500,000 units. The boom of 7,Solid Fuels Administrator, announced on June 9. '
ernment hopes, will spur produc¬
7
.
^
}
(DUting the week ended June 1, the first full week of Govern- tion
of
houses.
Although
it 000,000 cars annually now is at
least three years off, if, indeed, it
mente possession xif bituminous coal mines, the output was estimated
amounted to $10 a ton it was at
can" ever be reached.
at
3,7^-000 tons,- compared with 7?950,000 tons in the preceding week least $5 less than the industry had- ."The steel industry is * eight to
yvhicij ended the tkice in the soft coal strike. By June 4, however, insisted would- be required to twelve weeks behind on delivery
production had rea&hed about 98% normal. In the comparable week bring enough nail capacity back
cn

1926-1928

SJuhP,110.3.

5?

base
,

were:

June 8,

:

1946, 115.7;

June

1,

1946,

115.3;

and

on

Mar.

loss of

1,

-

WMy IkOal and Coke Production Statistics

tons,
tons

.

a

hoAoc

■■

^




■'

•"

available

and fuel

settled

strike

Lakes ships the ore
movement is expected to increase
for

Great

the remainder

rapidly during

of

the season."

'

Approval for Wool Price
Support Measure

|

A

special wool committee of the
approved

has

Senate

measure

a

Senator O'Mahoney
(D.-Wyom.) which would provide

introduced by

support the price of
beginning with
would hold it until
two years after the end of -the
war at 90%
of the average price
during the period from August
1934 to July 1939. The proposed

a

to

plan

the 1947 crop,

act, Associated Press advices from
Washington
on
May 30 r state,
would also" guarantee that until
the end of 1950 the price would
be held up to

,

between 50 and 75%'

of the 1934-39 average and
not

reduced

be

below

would

the

1946

price. Loans, support payments or
other

means,

said the Associated

Press, could be used to
aims

of

the bill and

achieve the

to establish

comparable prices for lambs. The

*

'

76.38%.

14,057,260 tons, or

shipments were 3,616,115
compared with 11,121,203
in May, 1945. With the coal

May

wool under which,

try, on June 10 stated in part as

material to be

.;VV-.r''

the long-delayed

and 1,648,500

/

of

Cleveland,
in
its
summary of latest news develop¬
ments in the metalworking indus¬

scrap

collections,

alloy

,

lOOfQjijiJ'fr All groups combined
■

132.0

to

month ago,

164.7

160.2

castings, ' compared

one

174.1

tr

and
one

192.1

168.4

gots

tons

190.3

162.9

the

operating rate of steel companies
having 94% of the steel capacity
of the industry will be 76.1% of
capacity for the week beginning
June 10, compared with 55.2% one
week ago, 48.9% one month ago
and 90.0% one year ago. This rep¬
resents an increase of 20.9 points
or
37.9%
from
the
preceding
week. The operating rate for the
week beginning June 10 is equiv¬
alent to 1,341,200 tons of steel in¬

price. While entreaties have been

Grams.

Miscellaneous commodities—.

-

that

tons

scran

167.2
216.2

131.4
10.8

&

indicated

tle

175.7
261.7

Livebtock..

idaD-oi

received

972,800 tons one week ago, 861,800

179.4
.

announced

10

had

have revealed lit¬
to be purchased at any

264.7

_

,• ;.,L.

..

June

on

telegraphic reports which it

which thug far

179.3

.

.

fre¬

quently during the war, is the re¬
sult of intensive scouting efforts

267.8

Cfir.tnn,

a

Institute

that

Agricultural
would

be

Department

authorized

.

wool

research arid

programs.

*

^

to

also
expand

demonstratioh
> V

A. w.

'■

[Volume-163

,*

Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE

Daily Average Crude Oil Production for Week ;
J Ended June 1,1946, Decreased 3,200 Bbls.
-

The American Petroleum Institute estimates that the

age gross crude oil

'4,755,900 barrels,

3,200 barrels per day less than the output for the
day below that for the

per

sponding week of 1945.J The current figure, however,
mated

aver¬

production for the week ended June 1, 1946, was

or

preceding week and 102,815 barrels
barrels in

daily

corre¬

129,900

was

of the daily average figure of 4,626,000 barrels esti¬

excess

by the United States Bureau of Mines

the month of May, 1946.

the requirement for

as

Daily production for the four weeks ended

June 1,1946, averaged 4,750,200 barrels.. The Institute further reports
follows:

as

"

>

,

..Reports received from refining companies indicate that the in¬

—2273

Labor

Dep't Reports Wholesale Prices Up
>I|.;i77j For Week Ended June I

FKA

Mfge. Properties-ftl 2

"Reversing the decline of the previous week, primary market
prices advanced 0.4% during the week ended June 1, 1946," it was
announced by the Bureau of Labor
Statistics, U. S. Department of
Uabor, which further said: "Price increases for agricultural com¬

7 In nearly
12 years of, iTiti« II
operations, during whichoW 44,44*0
home
and
housing ;project
mortgages have been insured by

modities, reflecting the railroad strike of the previous weekend,
were chiefly
responsible for the increase. The wholesale commodity
price index prepared by the Bureau rose to 111.1% of the 1926 aver¬
age, 1.1% above a month earlier and 5.3% above the end of the
war,"
according to the Bureau's report, which continued:
>.i7:S7

the

Housing Adrxhnjstraonly • 4,083 mortgage;d pro¬
perties and one mortgage /note 7
have been acquired by thejFHA
from lending institutions? ini ex¬
change
for
Governmenifguar.

pre¬

advance of 1.4%

an

Federal

tion

."Farm Products and Foods—Short
supplies of many commodi¬
ties in terminal
markets, caused by the railroad strike of the
vious weekend, were
primarily responsible for
in market prices of farm
products

Liftl^

Acquired

anxeed debentures, Commjus3ioner
during the week ended June 1.
Higher prices were reported for white potatoes, sweet potatoes, and Raymond M. Foley has announced.
On March
onions. Quotations for
31, 1946, Mr^ Foley
oranges advanced following the second recent
mately 4,843,000 barrels of crude oil daily and produced 14,293,000
said, the FHA did notbhaye a
adjustment in ceilings.
barrels of gasoline; 2,111,000 barrels of kerosine, 5,070,000 barrels
Prices for live poultry and sheep also were s ngle
property acquired: f-amder
higher.
Cotton quotations rose substantially in a
strong market.
of distillate fuel, and
Title II in its, possession) f;All of
8,881,000 barrels of residual fuel oil during the Continued heavy stocks were responsible for further declines in
egg
the 4,066 individual house^and 17
week ended June 1, 1946; and had in storage at the end of that week prices.
Prices of farm products, as a
group, were 2.4% above early
large-scale projects had been,sold
JD5,247,000 barrels of finished and unfinished gasoline; 12,509,000 bar¬ May 1946 and 6.1% above'the corresponding week of last year. > ;
"The advance of 0.7 % in the group index for foods was caused and the acquired mortgage inote
rels of kerosine; 33,040,000 barrels of distillate fuel, and 44,408,000
primarily by higher prices for fresh fruits and vegetables. In addi¬ had been disposed of, wiit^:;a net
barrels of residual fuel oil.
charge vagainst the protecting in¬
tion, quotations for corn meal were sharply higher
vft,:,■■;++++■+>'■:
following ceiling
surance funds of $2,473,545.
revisions.
The food price index was 1.0% above a month
DAILY AVER AGE CRUDE OIL PRODUCTION (FIGURES IN BARRELS)
earlier and
The majority of the
4.0% above early June 1945.
properties
State
Actual Production
according to the FHA were$/$old
Allow¬
Week
Week
i
*B.of M.
4 Weeks
Change
''Other Commodities—Average
prices for all commodities other at a slight loss either to th#,FHA
Ended
Ended
ables
Calculated
Ended :M
from
than farm products and foods moved
i
June 1,
June 2,
June 1,
previous
up 0.2% during the week to a or to the lending institution,/ hut
Requirements
Begin.
level 4.5 % above a year ago.
1946
1946
Week
1945
May 1
May Building materials as a group rose in some instances the salegj.pjice
0.5 % following ceiling adjustments for concrete
'•♦Now York-Pehna,—
+
50,400
51,650
47,200
2,450
48,900
blocks, mill work was sufficient to cover aljt,.costs
v
15
.Florida
-+<
250
250
and cast iron soil pipe. 'Quotations for window
shades advanced fol¬ and to make possible a refund, to
: + 7,250
••West Virginia.:
7,800
8,400
7,850
lowing earlier ceiling adj ustments, and; prices for office furniture the original
400
•♦Ohio-Southeast-..)
5,450
5,950
7,300
5,550
owner-mortgagbf who

dustry

whole

as a

to stills

ran

on

Bureau of Mines basis approxi¬

a

_

>

,

-

■■

,

Ohio—Other
Illinois

'
+++'+

2,650

,

19,450

V 11,350

209,700

201,900

30,500

200

30,700

28,300

45,550
>+

<

2,500

46,800

46,850

750

900

;

800.

:>

211,000

800

t750

252,000

t254,500

15~,650

257,850

258,800

370,000

t378,750

6,100

374,500

385,900

83,000

83,000
164,800

rose

fractionally

manufacturers.

with

ceiling

.adjustments

allowed

had lost his property. "Thi's'is' the
only system I have heard df1 where
it is possible for the

individual

Cattle feed quotations continued to advance

tional producers sold feed at

addi¬

as

higher ceiling levels recently allowed.

-The

get anything back aftef^fpreMr. Foley said^'llx is
added that only '22 smalL'libme

for

closure,"

mortgages insured under Title II

CHANGES IN WHOLESALE PRICES BY COMMODITY GROUPS

.Panhandle Texas.—
North Texas™.^—-i

521,100

521,100

153,900
495,300

East Central Texas-

139,600

139,600

388,800

388,800

379,800

JUNE

1,

West

Texas

Southwest

Texas

333,500

331,500

355,650

486,000

Coastal Texas—

486,000

(1926=100)

Totai

Texas.

2,050,000 *2,103,120

—

2,176,150

2,114,800

Louisiana

Coastal

80,100

291,450

Louisiana—

250
....

79,300
291,450

70,250
299,800

7

5-25

>,7,77,^

5-18

5-4

6-2

1946

1946

1945

1946

111.1

5-4

1946

6-2

ance

Foley

•

380,000.

372,000

371,550 1+

,

250

370,750

.370,050

March

—

79,000
53,000

.

———

79,900
51,850

Alabama

900

--—J

New Mexico—So. East)

Wyoming

t

110.7

110.9

+ 1.1

+ 4.7

138.8

137.2

137.9

135.6

130.8

+ 1.2

+ 2.4

+ 6.1

ferent. Of the 341,564

111.8

111.0

111.5

110.7

107.5

+0.7

+ 1.0

+ 4.f

120.9

120.9

120.9

120.3

family

110.3-

+ 0.5-

+ 2.2

108.2

108.2

108.2

106.7

and

Textile
Fuel

leather products
products

and

lighting materials

106.1.7 + 0.4

il09.9

0

99.1 i

,

0

+ 1.47

-

87.1

87.0

87.0

84.7

—0.5

—0.3

109:3

109.1

104.8

+ 0.1

+ 0.4

127.8

127.2

126.9

126.6

117.3

+ 0.5.

+ 0.9

+ 9.C

;770.7;:

+ 0.5

+ 0.5

+1.2

+ 3.6

+ 1.7

+ 3.4

S:-{ i

•'v-'.r ■ '...■

•These

'(after
*

\

■

125.1

1,300

114,000
19,350

107,000
20,300

All commodities other than farm
products

1,650
500

29,600
863,050

11,000
939,800

All commodities other than farm
products and foods..

3,200

4,750,200

4,858,715

2,900

Iy'.- >

.63,750

..

; .r.'t.lwl-

61,600

rAt,'

yvA

■ :

;

the requirements of domestic crude oil

condensate1 and natural gas derivatives) based upon certain
'premises outlined in Its detailed forecast for the month of May.
As requirements may
be supplied either from
stocks or' from new production, contemplated withdrawals
deductions

of

from crude oil Inventories
to

the

determine

-

1>t

.

May 29, 1946.

a.m.,

{Recommendation of Conservation Committee of California Oil Producers.'

PRODUCTION OF GASOLINE;

TO STILLS;

RUNS

101.3

95.3

106.1

105.5

102.1

105.1

104.9

,104,8

104.3

100.6

104.3

104.1

104.0

103.6

99.8

STOCKS

OP

118.9

1.27

+ 0.7

+ 1.6

+ 5.2

+ 0.2

+ 6.7

+ 0.3

+ 0.9

+0.2

+0.8
+0.7

+4.5

M

•

-

,
-

^

v

,

AND RESIDUAL OIL, WEEK ENDED JUNE 1, 1946

(Figures In thousands of barrels of 42 gallons each)
v

..

,

.

-

products^ii—2.1

Other .building materials—I

1.7

...

Cereal

0.2

Iron and steel—:

0.2

—

0.1

President to straightened-Y)ut dif¬
ferences

w'V

0.1;
the following notation in

of Labor Statistics*

..I

Bureau

.

of Mines

{Gasoline tFinlsn'd

wholesale

% Dally Crude Runs

Reiln'g

to Stills :
Daily % Op-

Capac.

Report'g

"District—

Av.

~

"

771

Coast,—99.5
^Appalachian—,, ■
<„
'
East

-

District No. 2

3——

————

,

.786

Blended

i

of

Kero-

v

& Dist.

Fuel

,

Stocks "'V sine

;

1,948

22,922

of

Resid.

Fuel

Oil

5,178

Oil

•

9,920

8,052

•/

May Civil Engineering Construction Totals
$560,24.4,000 for May,

an

eaflh of the five weeks of the month.

average for the four weeks of April, and is
of the five weeks of
May, 1945 according

Record."

The report issued

on

May,

176

3,467

struction is 1% below last month and 78%

1,248

and

95.0

58

8,353

693

1,869

3,023

346

319

14,249

7 2,118

5,205

5,135

109.0

3,183
1,020

3,870

1,107

147

1,698

i$y[ 249

1,676
490

1,332

46.0

76.9

>■&36

125

75.8

405

806

81.1

7

10

:

; :

*

705

225

•7

~

90

2,217'
15,363

2,220

H

'

>7

10
122

•:-h671

3d

38
-

;

404

8,042

"

802

the

from last

average

for May, 1945.

1,

May 1945

are:

,

23,027
■

1946

85.8

4,843

87.1

v 14,293

*95,247

12,509

33,040

44,408

Total U. S. B. of M.
basis May

25,

1946

85.7

4,857

89.9

14,322

,

95,769

12,235

32,973

43,368

V. 8. B. of M. basis
June

2,

.

unfinished

4,862

gasoline

15,291

stocks

of

t88,275

8,145,000

barrels,

8,574

29,608

tlncludes

39,456

stocks

and

in

of

con¬

!

Contruction
Construction

Federal

Municipal...
P

!

(five weeks)
$560,244,000
327,600,000

232,644,000
157,154,000

75,490,000

-

April, 1946
(four weeks)
$536,190,000
348,560,000
187,630,000
124,275,000
63,355,000

-

lines.

7>>777'-"

77;'.




'J\ '■ ,:'"r.'7.

". v

";'v:7-V,

the

basic

been

elements

ironed

agreement
'.

by
but

34.399.000

97,058,000

post of

of

<

49%

1945.

\

2, A single Chief of. Staff over

:

all the armed forces.
3.

The'

future

of

naval aviation

4.

Status

solve

the

land^based
z.

,

of

the

Truman, in

Marine
an

fcorps.

attempt to

controversy1.1 over

long
had

told

Secretaries

Patterson and ForrestaLto
Jryjand
work out their

differencelUrtd

re¬

port back to him by todayj+H
-

Members of Congress

been

following

the

expect Mr. Truman to

merger

May,

•

single Cabinet

a

Secretary of Common De-

Congress within

New Capital;

New capital for construction
purposes for the five weeks of
1946 totals $154,520,000, or a
weekly average of $30^904,000,
above the April average and 161% above
the average for
May,

dispute

th+p.fwo.
ffol¬

said,„ the

'

-

1. Creation

unification,

.May, 1945
(five weeks)
$164,955,000
33,498,000
131,457,000

of

out

impossible,

.

United Press:

Mr.

;

ndw5*pro¬

heads,
lowing widely divergent vi§w.s on
the following major points made

State

11,109,000

pipe

.

V

Construction—

unfinished

barrels.
JStocks at refineries, at bulk terminals, in
§Not including 2,111,000 barrels of kerosine, 5,070,000
barrels of gas oil and distillate fuel oil and 8,881,000 barrels of residual fuel oil
produced during the week ended June 1, 1946, which compares with 2,041,000 barrels,
5 463,000 barrels and 8,908,000 barrels, respectively, in the preceding week and 1,411,000
barrels, 5,007,000 barrels and 9,421,000 barrels, respectively, in the week ended June
2, 1945.
,-7'/v/ 7 y V"/;.' 7 'N'/-,..7
-A
•;
"
''''
transit

Public

S.

State &

194.5

•Includes

gasoline

Total U.
Private

of

month, is down 22% below May, -1945,

Total U. S. B. of M.
June

Public

;:;+;Ciyil engineering construction volume for May, 1946; April, 1946,
and

submit

According to advices from Wash¬
ington to the United Press, most

Federal construction, down 5%

May, 1946
basis

1945.

above last May.

municipal construction, while 1% above last month, is 357%

above

to

fense,

Private construction for May on a weekly
averagq basis is 25%
below last month, but 878% greater than

124

■

of $112,049,000 for

June 6 added in part:

4,508

<

United

240% above the. average
to "Engineering News-

65

888

continental

average

f 1,715

1,269

.

posals on a plan of coordination
to Congress in the near future.

Department

This average is 16% below the

1,067

80.8

effor|s;'n to
merger of

a

services.

armed

had

in

volume

19,838

350

85.5

7.;= 204

construction

176

70.9

$■;:

445

engineering

States totals

2,741

379

•'

>235

for

Itii^ antici¬
pated -that the report will) Enable

90.3

1,165

19.0
70.9

2,552

260

wh'icfi-"!had

iri

Mr; Truman

the

.

96.8
>

234

•,

Rocky Mountain— ,lr J'
No.

Unfin.

-r

Gas Oil

deadlock

weekly index is calculated from one-day-a-week prices.
It is designed as an indicator
of week to week
changes and should not be compared directly with the monthly index.

Civil

tStocks

Inc. Nat. Gasoline

69.2

60
;

.,

No.'4

at Ref.

91.9

99

76.3
84.7

District No. 1—-—

District

and

existing

price data, for the mo"t part
represent prices in primary markets.
In general, the prices
are those charged
by
manufacturers or producers or are those
prevailing on commodity exchanges.
Tne

•

-

Ind., 111., Ky—— 5" 87.4
Okla., Kan., Mo.——
78.3
Inland Texas
; 59.8
Texas Gulf Coast—
89.2
Louisiana Gulf Coast97.4
No. La. & Arkansas—
55.9
District

erated

Produc'n

;
a

legislation

pass

$560,244,009

tStks. of tStks.

created

f

its report:

'

basis-

■

Pr^ent

Navy presented to President Tru- |
on- May- 31
their rep'p'rt',on ;
the result of conferences between
their Departments directed
bty the

Decreases

Bureau

'

man

0.4

Othery foods_^-i

.

,

t'fiii'i 5

War & Navy Heads

0.6

tile—
"products—

Livestock and poultry

NOTE—The

!flj944

estimated

an

The Secretaries of War'atid 'the

Furnishings/-—^-.,—

4.3

with

Merger Conference Report

Brick and

Other farm

FINISHED

Figures In this section Include reported totals plus an
estimate qf unreported amounts and are therefore on a

,,
•

California

.

]

Increases

vegetables.

sold

'

Cattle' feed—lQ,i
and

been

charge against the War Housing
Insurance Fund of $537,595; The
balance of 3,472 remained 'In the
hands of the FHA.
" 1 t

+4.5

+0.2

had

+ 4.2

-o

AND UNFINISHED GASOLINE, KEROSINE, GAS OIL AND DISTILLATE FUEL
v

ing institutions,: of which1

+ 1.8

25, 1946 TO JUNE 1, 1946

The Labor Department Included

yr,'JThis Is: the net basic allowable' as of May, I calculated on a 31-day basis and
includes shutdowns and exemptions for the entire month,
With the exception of
those fields which were exempted entirely the entire state was ordered shut down
\tor five days, no definite dates during the month being specified; operators only being
required to shut down as best suits their operating schedules or labor needed to
operate leases, a total equivalent to 5 days shutdown time during .the calendar month.

CRUDE

123.1

101.7

Fruits

deducted from the Bureau's estimated requirements
of new crude to be produced.
In some areas the weekly
include small but indeterminate amounts of condensate which is

tOklahoma, Kansas, Nebraska figures fere for; week ended 7:00

.

124.6

106.2

+

PERCENTAGE CHANGES IN SUBGRQUP INDEXES FROM

must be

mixed with crude oil in the field.

/

124.2

101.7

amount

estimates do, however,

.

+

J \!i

-

Bureau of Mines calculations of

are

94.6

106.5

.+

••Pennsylvania Grade included above—65,450
>•.+

94.9
106.2

96.2

101.7

MAY

'

96.1

108.7

96.3

Semi-manufactured articles

400

4,755,900

96.3

109.4

96 6

Finished products

500

103,500

450

+

860,700

96.6

109.4

97.8

1,100

—

30,750

§835,000

96.6

110.0

Housefurnishings goods
Miscellaneous commodities
Raw materials

95,300

19,350
yVH

4,626,000

.

50

restoration), 5,41-3 had been ac¬
quired by the FHA from thj'lend¬

-+ 4.5

Building materiab?_^___~_____—

its

+ 2.4

109.4

cmc4ii+four-

properties built and
financed under Title IV (before

+ 9.2

86.7

109.5

100

+

—

114,400

22,000
23,000
840,000

—-

California

'

95,300

106,000

97,000

*

Total United States

72,800
62,550

400

—

Colorado'

500

1,650

,

—-

Montana

+

+

1,200

99,000

Mexico—Other-!

New

73,400
64,750

77,387

of Title Vlf Mr.
said,
the
picture "as
of
31, 1946, was a little ^dif¬

Foods

Chemicals and allied products

.Arkansas
Mississippi

housing^isiir-

program

194f

Metal and metal products

;

war

1946

5-25

fa&

•

=

the

Farm products
Hides

North

6-1

1940
ftftmmnritttes

Under

May 25, 1946, from—

Commodity group—

563,300

2,114,800

foreclosure.
Percentage changes to

•

seriously in default on
31,+1946, as to threaten

so

March

:
,

All

were

1946

138,200

East Texas

FOR WEEK ENDED

mortgagor

to

following tables show (1) indexes for the past three weeks,
May 4, 1946, and June 2, 1945, and (2) percentage changes in
subgroup indexes from May 25, 1946, to June 1, 1946.

:

90,000

164,800

.

——

250,000

370,000

Kansas

.Oklahoma

2,700

; -

1,950

19,800

.

30,000
46,000

—

Nebraska

200

2,750

v

■

■

16,400
204,000

—

Kentucky
Michigan

•

"

)

—

'Indiana

plan

Army-Navy
own

-v.:.'.-:-

trap^mit

few days; a

incorporating
agreements

proposals

sues. ■ *

a

wbd'have

controversy

on

to

new

the

and;: his's;

deadlocked is-

'■

..

.

)

CHRONICLE

THE COMMERCIAL & FINANCIAL

High Grade in the hands of the
Government permit of little or no
relief from that source in the top

which may

complicate matters in
year.".
The
publication further- went
on to say in part as follows:
y|foy

Trading on New York Exchanges
Securities

•

and

ExchangeV Commission

June 5, figures showing the volume of total
the New. York

on

round-lot stock sales on

Copper

Exchange

series of current figures being

transactions for the account of all

published: weekly by the Commis¬

,

Platinum

Completion of

Except on speculative trans¬
actions, the market for refined
platinum has been maintained at
$56

at 7

for

refined

of

the'rtotal transactions

the Exchange of 6,811,400 shares. This

on

trading during the week ended May 11 of

Compares with member

2,770,669 shares or 17.43% of the total trading of 7,946,630 shares,

Week/Si^ed

May 18 amounted to 715,340 shares; or 15.28% of the

total volume

that exchange of 2,341,035 shares. During the week

on

ended VMay 11,

trading for the account of Curb members of 711,325
14.09% of the total trading of 2,524,205 shares.

shares *was
J

ilWt/

,

*

The

Production
R

.

ENDED

MAY

18,

Total for Week

'

■

\%

•

A.-Tot iJ Round-Lot Sales:

o

r;v

y

■

(";«

;

Total sales.

the

Dealers and

v

Until

for Account of Members,

Odd-Lot Accounts

Specialists:

Of

Co

Odd-Lot

■■

v

I,; Transactions of specialists in stocks in which

they are registered—
Total purchases-.-*—-——
.'v\. Short sales.—————.;:

.

"

■"

654,620
-

■

132,740

{Other sales-

487,040

Total sales-.

619,780

Total purchases———

&

140,400

Short sales

serve

7,720

{Other sales—.

111,600

Total sales-.—-—-—

.

286,735

Total purchases—

1,066,505

:y> Short sales—

166,160

7 {Other sales-.—

,

859,675

>v<

Total sales—
•

> •

t! V £

;

-/'•h

a-

Teia!

•

Round-Lot

15.36

.1,023,835
V ' •/•■v:'---.

Sales

«>*.v-.

the

on

New

.•/■-.p.':-

y

York

.•.•.urr./

.>

v1;

WEEK ENDED MAY 18, 1946

.

:

•

t%

y,

t

————————————'

lOthersales..———

',

v

55,190

2,341,035

H Round-Lot Transactions for Account of Members:
1. Transactions of specialists In stocks In which
they are registered—
..Total pnrchnwrt*
—
"-.p v
Short
,

{Other sales——.

•—*—r—~

~T

,

„

„

,

235,795

Total salesTotal purchases

on

;

in

1——.

8hort sales

25,020

——

—

Total sales.

25,820

I. Other transactions Initiated off the floor•y :■

60,275

(Total purchases—.
Short sales

-

5,300

-

{Other

113,065

w
Total sales—,
4. Total—
Total purchases^.

/-'••'

•

"v"

118.365

Short sales

3.82

44,720

■■ a

for Account

y,y
of Specialists—

43-a.

\St> v.-"'

j

15.28

398,620

May

June

June

the

total

of

purchases and sales is
compared with twice the total round-lot volume on the
Exchange for the reason that
the Exchange volume Includes
only sales.
y:y^-y':y.....-:y.;.,:y ^^7
y ,
.v
-

JSales marked "short exempt''

are

Holiday
•

52.000

52.000

52.000

*52.000

52.000

..52.000

52.000

.

4—

.

June

5

52.000.

-

Chinese,

..

in some

.

directions.

by the Commission's

copper

ore

tion

producers

y

.

l

by1

Holiday

Tin,
Neto York

14.200

V

("E. & M. J."

Non-Ferrous Metals—Prices for

Copper and
June 3—Lead Sales Light

>

Holiday;.

Holiday

11.775

14.200

11.775

14.225

14.150

14.250

52.000

14.150

W

sion.

QUOTATIO^s|

New York

14.325

52.000

14.325

52.000

Uoiiday^'-

8.29

6.5%

•:

Holiday
7

6.35

52,000

6.50

-7

6.35

8.25

" x-'": 8.10

7:

cialists. i

8.25 ?

STOCK
•

52.000

7.55

;

AND

are:,

In

Markets," in its issue of June 6,
"Following announcement by OPA of higher ceiling prices for
copper and lead at the close of business on May
29, copper was raised
to 14.3750, Valley, as expected, and lead
moved up to 8.250, New
York, a price somewhat below the level deemed necessary by trade

prices

became

Kennecott,

the supply situation

effective

Phelps

June

Dodge,

and

A.S.&R. Co. entered into negotia¬
: to
settle the strikes,
but

progress

far in reaching an
has been slow. Until

so




The higher ceiling

3.$

tions

agreement

quickly.

the

trade,

domestic

Effective

Domestic ■)%

1

<

*

appraisal ot-the major United

14, the export quotation for copper Reflects" prices
und is based cm sales in the foreign market reduced

For

strikes are settled the acuted

shortages in supplies will continue.
The Government is

moving slowly
in the matter of renewing its con¬
tracts for foreign copper and lead,

copper

are

for

the

obtainine In

ordinary

forms

of wirebafS arid ingot bars.

^

ingots an extra 0.05c. pef pound is charged! for slabs 0,075c. up,, and
0.125c. up, depending on weight arid dimensions: for billets an extra 0.75c.
on dimensions arid quality.
Cathodes in standard sizes are sold at a

cakes

up,

depending

per

pound.

■•■.v-rr

Ti;: '

Total

less

than

lc.

over

the

"E.

& M.

J."

average

for Prime Western for the previous

month.

Quotations

for

lead

reflect

prices

obtained

for

common

lead

only.

»

Per We<Ht 7

shares—; : 952,672$44,320,313

(Customers'

sales)
Number of Orders:
*

/

*

'

'

'

"

Customers'

short

sales

other

sales

,

-

Customers'' total sales
Number of Shares:

Customers'
*Cust6mers'

■■

Customers'

short

:

7

-

w

.V.

other sales__tl
total

2,549'?

822,309,'

sales

Dollar value—,—

\
69 '
28,592 7

28,66a_

- ;:.

saleS-4^;

824,853

-ui-_l.'$37,206,534'",

Rdund-Lot Sales by Dealers—
Number of Shares:.;

>

•"

4,

.,

;

jiq" '

Short sales_-i_~-„^__e__
fOther
Total

''

v'

,

,

•Customers'

sales—

176,100-

Sales

176,210

Round-Lot Purchases by Dealers—
•Sales

shares_.__^

marked

f

,'
'

1

Number of

Quotations for zinc are for ordinary Prime Western brand^e- Contract prices for
High-Grade zinc delivered in the East and Middle West id' nearly all Instances com¬
mand a premium of Id. per
pound over the current market for Prime Western but

r

:

Week JJnJecJ,May 25,-1946

standard

for

not

.

Number of

,

for

ODD

N.

EXCHANGE

Odd-Lot Purchases by Dealers—

77':

equivalent, Atlantic seaboard. . On f.a.s.'transactions we
lighterage, etc.,-to arrive at the f.o.b. refinery quotation.
■ ■■r^pr.

discount of 0.125c.

the

'■■■>

to the J.o.b.
deduct 0.075c, fof

refinery

Quotations

.

THE

ON

■.Number of orders.

^ottrprompt and futufe
■

.

THE

(Customers' purchases)

copper

March

market

open

..STOCK

6.5000; • St. Louis lead; 6.3500J St.
-

.

FOR

Odd-Lot Sales by Dealers—

prices are quoted on a delivered basis: that Is.
delivered at consumers' plantsAs delivery charges vary,., with-'tb© 'destination, the
figures shown above are net prices at" refineries on the Atlantic seaboard.
Delivered
prices in New England average 0.225c. per pound above the refinery basis. .
the

I

•

8.25

Lo-b. refinery, 11.7750; export copper f.o.b. r^jjnery 14.2040;

zinc, 8.2500; and silver, 70.7500.

7

.

SPECIALISTS

8.25

MM,

.

^
>

LOT ACCOUNT OF ODD-LOT DEALERS

8.25.

'

'

f4?'!

TRANSACTIONS

,

14.254*

;

8.25
8.25

8.10

The figures are based upon

reports filed with the Commission
by - the (odd-lot dealers and spe¬

,

St. Louis

8.23S^£

14.150

Zinc

St: Louis

52,000
.

Copper, lead and zinc quotations are based on sales far
deliveries; tin quotations are for prompt delivery only. G

"E. & M. J. Metal and Mineral

stated:

ease

,

*

Tradjng;

Senator f Murdock.

—Lead—i

Straits

-Electrolytic CopperRely.
Exp. Rely.

The above quotations are "E, & M. J. M. & M. M's"

v

-

authorities to

^

•

NYSE Odd-Lot

the Silver bill introduced

on

recently

Straits tin, 52.0000; New York lead,
Louis

,

included with "other dales."

prove. Labo/legislatiph and other
pressing mafters have put off ac¬

developmentsj

indication that the

States markets, based on sales reported by producers and agencies.^ They are reduced
cash, New York or St. Louis, as noted. All prices are In cents per pound.

on

Bankers Ass'n Post

99% tin, continued

or

to the basis of

Lead Increased

Simmons Elected to

52.000

52.000

—

.Average prices for calendar week ended'June l

members'

{Round-lot short sales which are exempted from restriction
rales are Included with "other sales."
-

; 52.000

Other

Average.

their
-

percentages

Holiday
■

5^.000

shaded

Dom.

5--^—■

,

calculating these

52.000

3—

June

/'rt"iV;y *' ns''. ;"}

DAILY TRICES OF, METALS

1

June

•The term "members" includes all
regular and associate Exchange members,
firms and their partners,
including special partners.
i
*
-

tin

y

price

30—

Total sales.!—.—

1

Holiday

i

i^—527000" 52.000

The Western Senators remain

31

June
■

Total purchases

;

31

June

the Tri-State area, the custom

May

y

30______

June

expected to- im¬

May

JU'>

May

who

Zinc

Customers' short sales.

17

sav-.

•

'

ICustomers' other sales.
y

representing the six mutual
ings. banks associations.

"a

as

was no

353,900

:y
& Odd-Lot Transactions

-

316,720

{Other sales.

In six of the States
also six State Chairmen,

are

The
Securities and Exchange
con¬
smelters, and makers of Special
^Commission made public on Juno >
High Grade could be reconciled fident over "their ability to pass
5, a summary for the week end-*
quickly, and few in the trade look the
compromise
measure
that
ed May 25, ; of -complete figtires;
for an early decision on the new would fix. ther price, at 90.5c. an
showing the daily volume of stock it.
price. The feeling exists that it ounce troy for two years and at
transactions for odd-lot account \
will be nearer 9. than 10c7, y
$1.29 thereafter?
of all odd-lot dealers and special- • V.
Metals Reserve has agreed to
The New York Official price of
ists who handled odd lots on the *
release some of its Prime Western foreign silver continued through¬
New York Stock Exchange, cpnzinc to relieve the tight
supply out the wedk at 703/4C. an ounce
tinuing a series of current figures? :
situation. Small stocks of Special troy; London 44d..
being published by the Commis-?-?

20,650
800

{Other sales

Producers

conflicting views of

10.47

the floor—
*

'

There

254,435

Other transactions Initiated

lead.

pending

38,620

215,815

—

there

section7officersi elected.
included: Vice-Chairman, Willard
Silver
Exploratory talks between OPA
G.7»McGi^W;6f Uniori;Trast
officials and members of the zinc
'Pending enactment of .new and
Secretary,7^ Bruce Frantz of
industry took place in Washington legislation, - the 7 supply- situation
American Security & Trust.
7 ■£
during the last week to consider in silver is not;

2,285,845

Total sales

Treasury State Director of Savings
Bonds sales.

"

new

•jr-zvc; 4

..

Short sales.

y 0

-

}

Total for Week

B» Total Round-Lot Sales:

•

"curb Exchange sad Stock

Transactions for Account of Members*' (Shares)

.

i

( >

::r-y

Stock

Chair-"

1;350 tons.
This
national organization of
shipment7hf 100 tons of tin the banks will have ari importantleft Chilegori," the first to be part in the
special sales promo¬

May

rating of gasoline to con¬

viewed

Total—

7

:

State

and

those

on

The

25,700
261,035

Total sales

(vi;

States,

William V. Simmons of Liberty T
National Bank, Washington, D. C*
ceiling price was at 51.125c. pef pound.
was elected Chairman of the fidri*
step in the right
Quicksilver
ciaries section of the District of "
direction," but unlikely to cause
Uncertainty^ovejC Spanish 7 de¬ Columbia BankersrAssociation -at::
a rush to produce lead in quantity
to meet the present situation. The velopments in the political field the annual meeting held on
May
fact that the foreign market has resulted in a slightly firmer mar¬ 27, said S. OUver Goodriiarf, wtlti
advanced to 8%c, and higher in¬ ket in so facas ;Mexican metal mg for the Washington wPost.M
%^
dicates that the-price situation.in was concerned, Business here con¬
•Mr, gbnmons started his career
lead is stronger than officials in tinued on the quiet side, but quo¬ in 1924
with the American Secur- :
Washington realize, members of tations coveijng spot "and nearby ity & Trust
Co., and joined Lib- i
metal remairfpd unchanged at $100
the industry believe.
erty National Bank in 1932 as ail
Sales of lead: for the week were to $103 pen" flask. On forward
Assistant Trust Officer. He i3 noswr
metal
$190^ could- have' been a Trust Officer.
light, totaling 560 tons.

;271,589

■} {Other
:

4.

has

New York, basis, beginning June
3.

119,320

...——

j r-fTotal purchases—--——————y—.
X's'r. Short sales—

i

A

■

have concluded wage agreements
were sellers of lead on the 8.25c.,

I.] Other transactions Initiated off the floor.

'■ .s

as

negotiations by

and

octane

1. Other transactions Initiated on the floor-

■X1

-i';' iii;

20

debt

produced in the Netherlands East tion program for
Treasury Sav<
A.S.&R. Indies
under 'Dutch supervision ings Bonds
during the period tins¬
representing labor since the
Japanese capitulated.
til July
bring about a settlement of the
J 4. , Chairman Hagemanh
The market in the United States has urged all banks to intensify.
strike, the supply situation in lead
sales" effort through lobby,
will remain acute. During the last remains unchanged^ Straits qual¬ the
week lead oxide was placed un¬ ity tin for shipment, in cents per posters, t newspaper
advertising,
fellows: and general publicity.
der allocation by CPA, and con¬ pound, was nominally:
June
sumers of ethyl fluid reduced the
July Vv August

6,811,400

B. Round-Lot Transactions

for

i.

>.?.

■

Lead

y

United

United States

June 1.

v.- in,

/:

Shangh^t

public

men who will coordinate activl-7
ties between the banks and the

tons; ' Latin
America 400 tons; Turkey 100
tons; UNRRA ^202 'tons; and the

6,604,010

{Other sales.

Except

tons;

the

as possible, is made up oL
national committee of represen¬
tative bankers from each' of the.
broad geographical regions of the

533 tons; Miadle (East 39
tons;
Netherlands 240 tons; Norway 52

*.

organization, which
U, S. Treasury in

the

widely

of tin amouhting to about
9,000 long tons? Of-;the total quan¬
tity allocated Canada is to receive
1,070 tons; France'2,840 tons; Fin¬
land 150 tons; India 640 tons; Italy

arid

ABA

assist

a

tions

a ri

Was resumed

207,390

Short sales

7
:
Rhokana

-of

on

distributing

combined Tlh Committee
announced? additional alloca¬

The
has

Antelope, operatingi y in
Northern Rhodesia, which halted
May 28 because of a coal shortage,

3946

7'

at

The

will

v

;

United

property continues,

^

;?

hampering busi¬

Kingdom and
European countries have
been
buying copper for thirdquarter delivery. During the last
week business was placed abroad
at higher prices than those obtain¬
ing here.
"
The strike at Chile Copper

Wotal Hound-Lot Stock Sales on the New York Stock Exchange and Btud-Lot Stock
// AG '
Transactions lor Account of Members* (Shares)
WEEK

cakes

and

in all directions.

or¬

promote

the Committee on Treasury Sav¬
ings Bonds of the American Bank¬
ers Association, who is also VicePresident of the Boatmen's Na¬
tional Bank, St, Louis, Mo. ■"/'
^?

plat¬

inum'

several

On the New York Curb Exchange, member trading during the

j:

bars

ness

to

Treasury
Savings.
individuals was an¬
June 9 by J. Fred¬
erick Hagemann; Jr., Chairman of

will reflect both wholesale
; -Trading on the Stock Exchange for the account of members
and the small-lot or retail prices
(except' Odd-lot dealers) during the week ended May 18 (in round- June. Demand for copper remains
prevailing in the New York mar¬
lot transactions) totaled 2,Q92,340 shares, which amount was 15.36% heavy, with the shortage in wireket.
?

|

nationwide

a

banks

of

Bonds; to

$53.'Effective June. 1,

quotations

our

sale

nounced

wholesale transac¬

with

sumers,

industry were in no position
to offer copper. Metals Reserve
will be the largest seller during

ganization
the

troy on sales to con¬

an ounce

tions

the

.

ABA Bank Organization
To Promote Bond Sales

grade.

v

and the Metals Reserve. Others in

Bhdrt sales are shown separately from other sales* in these

figures,

"

Selling of copper at the new
ceiling level was limited to those
few
companies which have
granted approved wage contracts

the week ended May 18, continuing

members of these exchanges in
a

public

Stock Exchange and the New York Curb

and the; volume of round-lot stock

sion/-

the third quarter of the

made

Thursday, June 13, 1946

"short*

,

exempt"

337,169
are

n»>

ported with "other sales."
t3ales to offset, customers' odd-lot
order*
and sales to liquidate a long
position which.'
Is less than a round lot are
reported witlx,
"other sales."

Volume 163

Number 4498

THE COMMERCIAL & FINANCIAL CHRONICLE

Revenue Freight Gar Loadings Daring Week
Ended June !, 1946, IncreaserflSiJ
31I Cars
1

;

Loading of

totaled

626,885

'nounced
week

of

1945

the

cars

June

on

Association

This

6.

Am erfi^ri^'Railroads

*of

a-decrease

was

below

<•'

Loading

•and

of

merchandise

an

cars,

increase of 15,799 cars above

increase of 6,894

an

cars

less

carload ^ot" freight

than

totaled

above the

{■...

above the preceding

cars

week but

debase

a

^elow the corresponding week in 1945.
In
alone, grain and grain products loading for
:totaled

26,5*73.

"week but

a

cars,

an

increase of 2,446

of 9,210

thel^estern
theWweek

1

coi^sponding week

in

.1945.

Livestock loading amounted to 13,432 cars, wfincrease of
3,312
Jcars above the preceding week and" an 1001:608^^582 above
the
i ^

-

•

[corresponding week in.

1945.

42

1

decrease of 34,909--

a

xorresponding week in 1945.

cars

below the

"

r

Y

•

of

January..
of February

weeks ;of

March—

•

4

weeks

.

^3,052,487
4.022,088
•3,377,335

S3,456,465

May__^>.

3,275,846

3,441,616

837,886-

15,880,063

following table is

810,698

17,749,916

3,675

2,963

4,419

4,662

1,649

940

1,469

of the freight carloadings for
systems for the week ehjded June 1, 1946.

During this period only 29 roads reported gains

1,184

1,335

403

11,899

10,291

10,539

6,299

8,016

24,671

10,739
23,227

19,902

25,835

556

680

737

694

166

150

901

1,238

126,265

119,336

98,892

Great Northern

13,213

16,943

16,937

1,935

2,074
20,363

over

the week ended

REVENUE FREIGHT LOADED AND RECEIVED FROM
CONNECTIONS
..(NUMBER OP CARS) WEEK ENDED JUNE-1
Total

Received from
.»

1946

1945

329

6,094
964

Central Indiana,

t

.

j

-

24.,

1,292
6,187
1,060-

1,002.

8,677

6,710

10,653

319

369

105

108

21,212

.5,350

% 9,273

390

1,758
1,911

1,391

393

Brie

9,113

.Grand Trunk Western....

3,679

11,924
3,631

i

& Ironton
—

Lehigh A Hudson River
-Lehigh A New England—
Lehigh Valley.

122,519

243

:

2,116

23,854

2,438

Monongahela..

2.229
635

9,459

York, Chicago &St. Louis—;—
Y., Susquehanna A Western
Pittsburgh & Lake Erie.
Fere Marquette.!
Pittsburgh & Shawmut
Pittsburg, Shawmut & North.
Pittsburgh & West Virginia.

23,110
3,031

2,915

446

504

13

16,439

8,720

2,820

3,413

795

12,003

10,451

10,464

338

'.H 839

2,696

2,097

3,077

5,059

427

548

512

1,512

2,557

2,892

3,488

3,718

472

706

1,802
250

City.

496

;
,

1,698

Wheeling A Lake Erie.

3,298

Utah—.

1,178
1,404

1,073
1,660

700

31,785

31,253

0

294

.11,974

14,377

.213

-

16,089

6,114
:'V

.51 !>.

a

2,061

3,089

5,413

125,359

112,576

68,797

110,463

;

300

373

510:7

7,214

5,700

1,783

_

2,918

786

.

3,285
2,570

.

2,009

5.23F— 3,318

3,198
1,391
12,100
4,194

14Q,434^_. 164,407

220,632

1,029

■; 1,347

20,018

mi..

4,749

6,404

2,815

554

2,269

2

2,106

428

113

14,704

6,643-:-

442-i-.
/—163
1

19,599

^ 36

50

7

298

330

1,166

1,439

179

179

278

-

3,830

5,309
19,552

16,079

15,031
71-

9,660
3,619

11,225

3,151
12,356

5,377

13,405

8,075

9,225

m.

136

-7,596
2,803

,

140

145

\
v\

17
3

10

49

94

1,621
1,625

54,871

84,999

1,505
1/797
83,-805..;', 48,595

10,699
r 3,607
1,907

4,549
2,274
63,209

13,770

15^065"

.f 21,983

25,948

19,266
3,599

19,660-:^ 2,444

7,177

4,12^:"/^ 10,350

12,286

183,623

186.5T4" ^'126,090

167,355

V 12,663

28,128

28,13,345

8,663

4,880

9,5S0

21,066

22,279^J

1,854

4,483

'VV—.

4,553

41

jnrglnian
TotaL




;

5,996

&

Gulf

5,580

8,653

5,761

4,439

113

116

34

agister!

dated

Offering

June

(

13

and

to. mature

eral Reserve Banks on June 10.

Total applied for $1,990,725,000.

/.

Total
accepted,
$1,310,138,000
(includes $37,965,000 entered' on
a fixed price
basis of 99.905 and
accepted in full.

Average price,
alent

rate

21

12

36

74,744

69,543

54,346

.

approxi¬

per annum,!#?

;

of accepted competitive

Range
bids:"

I fx

High, 99.908; equivalent;' rate of
discount

,

approximately 5 0.364%

per annum.

-r:

^

Low, 99.905;

73,391

•

99.905+^^uiv-r

discount

of

mately 0.375%

34

30

,

Ry. only

^Includes Midland Valley Ry, and Kansas,
in 1944 and also Oklahoma City-Ada-Atoka Ry. in 1945

NOTE—Previous year's figures revised.

.v

•

*

"

discount

equivalerff|[Ste of

approximately^ 0.376%

per anrrum.

(63% of the amount bid .for at
There

was

maturity of

a

iliar issue 6f bills
the

""

amount

of

a

June

on

sim13

in

$1,303,816,000. ?

Lumber Movement—WeeK

Weekly Statistics of Paperboard Industry

Ended June 1, 1946

We give herewith latest
figures received by us from the National

Paperboard Association, Chicago, HI., in relation to activity in the
paperboard industry.
•
The members of this Association
represent 83%

industry, and its program includes

a

of the total

statement each week from each

member of the orders and
production* and also a figure
cates the activity of the mill based on the time

which indi¬

operated.

figures

These

advanced to equal 100%* so that they represent the total

are

//

j- 4p

/

*

'

""

*

.

'

Mar. 2

'

Production

Tons
—

Tons

/

'•f198,985

161,122.

178,443

Mar. 16

;.vL

April
6
April 13
April 20
Apr.
27—

24.620

225,192
154,235

164,562

143,940

7

99

Trade

ing

100

167,627

591,661

/

99

94

':l:h

:

159,370 7

;/

:

me

605,288

101

96

165.911

591,206

97

96

■i•'

95

/

96

595,427

92
93

96

567,068

85

reports, orders made for
ments of unfilled orders.

or

of
.

96

565,225

139,693

96

week, plus orders received, less
production, do

orders

at

the close.

1946.

1,

orders

In
of

th$. jsame

these., jnills

8.6% "below production: Un¬

reporting softweed mills,
are

production

un¬

equivalent fd 30
at. the

.

current

equivalent to

are

:

days' production.

^

,-J For the year-to-year, shipments

96

152,203

unrrned

new

rate, and gross
33

162,563

of the prior
equal

1$%, be¬

.

96

131,133'
Z—....

For

95

101

101

;

566,^52
553/274

,

were

95

607,799
7

Barometer

June

week

days'

•?*95

142,001

—

,

necessarily

94

100

156,291

155,747

1

,7'.;" 99

174,501

148,161

18

t

i

229,120

.....

11...
25

169,627

■

re¬

low production for the week end¬

filled orders

/V' 93

539,100 :7
549,928

167,541

...

4

May

183,509

/ /

Mar. 30

98

538,572 "X

164,267

mills

porting to the National Lumber

mills amounted to 88% of stocks.
Percent of Activity

Current Cumulative

551,081

167,243

■:••

169,355

Tons

533,794

158,229

157,237
:

:

/;

Association,

tt

•

Remaining

-

9

Mar. 23

''

Unfilled Orders

:

Received

r

1946—Week Ended

Mar.

Manufacturers

lumber shipments of 405

filled order files of the reporting

REPORTS—ORDERS, PRODUCTION. MILL AOTIVITT

\/<,y-,'.,\i*•,

Orders

Period

According to the National! tim¬
ber

were

STATISTICAL

•mv.Vv^VV-Vy-'

7,604

2,294

54'9!?&^,737
a_

Treasary

12, which were offered on
June 7, were opened at the Fed¬

tIncluded in Atlantic Coast Line RR.

June

4,51«S»L 1,396

53,677

com- ;

.

the low price was accepted:)

May

24,107

,

tenders for $1,300,000,000 or there¬
about of 91-day Treasury bills to

5.631

56,416

May
Poeahontas District—

Sforfolk & Western

Bill

7,429

5,098

23

,

__

Wcatherford M. W. A N. W

14,722

1.37 L

-i

:

The Secretary of the Treasury
announced on - June 10 that the.

359

6,537

*

76

m.

Wichita Falls A Southern.

May

Chesapeake Si Ohio

204,000 shares of

stock.

:

398

6,106

"

»

1,391

—

.

Result of

3,512

7,024

/

Texas A Pacific

11

1,241

———

stock and

3,334

3,736

166
m,

_

1,513

208

...

__

1,556

;

2,439
4,040

4,617
12,469

m.

Louis-Southwestern

28,585

9,713

'

6,441

.r

...

1,050

2,444
4,149

•

3,826

298

....

—

316

;

2,532

1,540

922

Texas A New Orleans

18

256

109,681

Maryland——

St.

8,374
•

57

5,504

248

Beading Co.
Western

-19,507

4,698
__

Missouri A Arkansas

.

9,531

44,027

1,243

V 5,050

Ugonler Valley
—
Long Island
Bonn-Reading Seashore Lines—

Union (Pittsburgh)

12,823

12,754 :/

4

mi.

—

Missouri-Kansas-Texas Lines

3,785

5/895

0

Pennsylvania System

2,063

461

—

17,572

2,494

672

28,799

•Cumberland & Pennsylvania

$1,056,891, and net profit, before
provision for Federal taxes, of
$38,944.
1 -•>>*'
Upon
completion
of this fi¬
nancing, outstanding capitalization
of the company will consist of 58,000 shares of convertible class A

,

m.

36

1,493

4,568-™.

5,912

0

14,762

0

270

-399+

"335:SrǤf?,; 1,169
■

0

9,224

industry.

Cornwall.

April 30, 1946,

Sept.

266

-

foreign

grown

the company reported net sales of

be

609

107,488

Burllngton-Rock Island

52,043

-1:265^^'

•

7#
\

in

Latin American countries. For the

105

<

450

27,512

•

manufac¬

a

2,573

241

..-'■i': 9
39,717

•

338

463

Jersey

is

nine months ended

582

*

142

•2,231

Gulf Coast Lines

1,463
12,126

273^-'

5,690

378

1,648

,

TotaL

2,619

•2,618

905

'

and 1946.

4.163,
.

2,230

Southwestern District—

Oklahoma

'7,141

,

434

:

44

2,245

761

12

7,006
•

1,304

516

-

2,629

Allegheny Dlstrici*-

r

Fruit

distributor

of foodstuffs

and
prepared in the United States. Its
principal trade is carried on with

4,688

1,260

1,593

s

8,120

'

Indiana

and

improvement^
■]

16,744

82

677-: «

977

Toledo, Peoria A Western
Union Pacific System

17,107

7,555';?*"

123,601 V 151,699

Central R. R. of New

1,404
1,911

1,460

;

103

8,538^"
13,523
lt257j-iV" *1,569
6,055,7-. 11,722

'■

1,037

,

5,285

&

,

1,044

■

*8,827

.

1,087

1,602

45,356^

277

374

Wabash.

Bessemer & Lake Erie.

;

Seaboard
markets

13,103

1,961

Southern Pacific (Pacific)

*

7,416

JButland.

Cambria

nection with recent

875

Peoria A Pekln Union

2,770

2,451^

.

4,695

203

Akron, Canton & Youngstown.
Baltimore & Ohio

to

12,783

North Western Pacific—

6,299

8,381"

•v.'; 371 '•

3,800

TotaL

due June 30, 1946, and
liquidate a note in- the
amount of $8,000 incurred in con¬

85

17,664

Colorado A Southern

10,913
-

1,982"'

6,276
;:v

5,546
,

70,858

1,203
.9,892

10,946

183

6,274-^

V968

6,082
i:> 261

57

1,052

264

-

M.

'

2,010

11,386

1,555

9,226

685

York, Ontario & Western

2,039

■i—16 G-'W .*2,130

48,491

W. Y., N. H. & Hartford

1,466

.7,848

;

3.307-

•2,458

39,892

Mew

52,395

121,284

3,634

Quanah Acme A Pacific

8,833

12i822'r'

6,198

5,667

Montour—

591

3,979

14,451

Chicago, Burlington 8c Quincy.
Chicago A Illinois Midland.
Chicago, Rock Island A Pacific
Chicago A Eastern Illinois

13,320

278

173

Maine Central.^..—.—.

Dew York Central Lines

6,481

':/;>/

2,179

•

.

26,986
f,

7

St. Louis-San Francisco

1,643.
:

1,831
7,807
2,303

•

4,039

,1,235.

69

.

2,621
3,121

:

421

r

1,020

1,897

8,801

.

:

3,040

226

2,321

246

-

M 4,301
7.300

6,861

•190

—

/

>

44

2,025
1,936 /
6,112
•

2,545

Alton

1945

33'27/

1,696

288

JRew

11,051

679

438.

-

,6,393

1,811

Atch., Top. 8c Santa Fe System

1,450

-^8032^.'J» 1,994

4,845

„

$50,000,

also

mon

424

..

1,140

940

3,814
5,882
277

Detroit, Toledo

21,064

95,222

11,168

.

.

6,511

35

1,024

Delaware, Lackawanna A Western

723

126

1,339

266
:'

1.228

Delaware A Hudson.;

304

1.453

Missouri Pacific

1944J946,

'

'Man Arbor j

Central Vermont.

3,826

'

425

3,569
10,021

8,961

6,253
8,778

Kansas City Southern

Revenue Freight Loaded.,
r"rf"-. vumi
Connections

Chicago, Indianapolis A: Louisville:

•

266

754

398

Litchfield A Madlson_

Railroads

Boston A Maine

3,701

29,309

847

1,779

Louisiana A Arkansas

,

Detroit A Mackinac—.:

2,987

24,688

3,046
9,599

416

.

tK. O. & G., M. V. A O. C.-A.-A

•

•Bangor A Aroostook—

14,499
/

6,102

V,

•

10,894

2,276
/ 18,090
2,966

730

a share, and
stock; par 10
The units are priced at

Proceeds from the sale ;

turer
"

17,840

$4

par

common

to plant.

Northwestern District-

16,932
2,971
14,485

offering consists

added to working capital and used
in part to pay off a bank Joan of

118.442

Chicago A North Western.
Chicago Great Western..
Chicago, Milw., St. P. A Pac
Chicago, St. Paul, Minn. A Omaha.
Duluth, Mlssabe A Iron Range.
Duluth, South Shore 8s Atlantic—..
Elgin, Joilet A Eastern
Ft. Dodge, Des Moines A South.

International-Great Northern

Km tern District—

1,570

422

528

•

stock,

V2 share of

557

110,370

-Total

class A

cents).

1,091

.

by1- Hill,
as;; sole

$5.10 each.

'

.

Co'.^Ind,

7

Inc.,.

58,000 units (each unit com-f
prising one share of convertible

13,075

9,820
375

140

Co.,

underwriter. The

16,947

1,241

746

TotaL

17,75?,013

/June 2, 1945.

Detroit A Toledo Shore Line

25,305

a summary

the separate railroads and

/.

26,419

■/:

&

Fruit

June

of

691

4,331

440

Western Pacific

The

27,146

769

3,162
13,678

192

Winston-Salem Southbound

Nevada Northern

3,158,700
3,154,116
3,916,037

3,982,229
2,604,552

Week of June

>

-i. 27,935

'

.

405

Illinois Terminal

1944

'-3,003,655

.

2,616,067
626,885

April-4-,TrV^-,_.—

of

;':^,i945

2,883,620
2,866,710
.

A weeks' of

2,599

433

4,088

281

Missouri-Illinois

1943

M

2,189

1.234

393

23,006

Fort Worth A Denver

.ing weeks in 1945 and 1944.
weeks

120

public financing on be¬
Seaboard

428

1,141

86

410

Denver 8c Salt Lake

All districts reported decreases compared with^the correspond-

*4 weeks

712

1,564

59

11,426

Denver 8c Rio Grande Western

corresponding week in 1945.

]

123
1,169

;

1,183

'

365

-

232

Bingham 8c Garfield

Coke loading ■amounted to 4,748. cars, an increase of
1,129 cars
■above the preceding week but a decrease of
34,90SL<*ars below the

f

v.::r

5,495

v.-

223

,

.

Initial

Central Western District—

Ore loading amounted to
37,400 cars, an increase of 8,759 cars

;

•

jabove the preceding week but

:

407

Piedmont Northern.
Seaboard Air Line

Spokane, Portland A Seattle.

a

Thompson

109

Spokane International

the corresponding week in 1945.

3,064

1,463

•above the corresponding week in 1945.

*cars. above the preceding ;week but

2,389

3,237

Norfolk Southern

*

cars,-an^fftcrease of 9,416
decrease
1^807 cars below

announced

f

"

Northern Pacific.

[ Forest products loading totaled 4l,8l0

was

387

363

Superior A Ishpeming
Minneapolis A St. Louis
Minn., St. Paul A S. S. M

10,llZxars, an increase
week, and aii'increase of 386 cars

1,582 f.

199

17,118
•V*;;- 213

Lake

of livestock for the week of June 1 totaled
.of 2,669 cars above the
preceding:

of

.

iv 1,132

Green Bay A Western.

In. the.Western Districts alone loading

half

4,703
1,547

252

?

493

Nashville, Chattanooga A St. L..

Districts

of June

11,197

1,661

1,142

Macon, Dublin A Savannah.
Mississippi Central.

cars

abbve the preceding

cars

decrease of 7,5Q7 cars below the

increase

an

8,358
4,436

3,734v

1,747

^ 3,822
21,298

corresponding week in 1945, due to coal

strike.^

12,019

3,712
; 4ii

89

Southern System
Tennessee CentraL

loading totaled 39,303 cars,

t

106

Richmond, Fred. A Potomac.

Grain and grain products

306

2,639

t

1,592

Coal loading amounted to 61,791 cars, a decrease of 58,575 cars
below the preceding week and a decrease of
99t|§2 cars below the

'®f 4,398

133

1,365

718

"

Illinois Central System.
Louisville A Nashville—

Offer Seab'd Fruit Units

332
732

13,291

v

379

Georgia
Georgia A Florida.
Gulf, Mobile A Ohio

1945

t

619

Florida East Coast..—
Gainesville Midland

tfie^receding week;;
corresponding week in 1945.

1946

466

Columbus A Greenville
Durham A Southern

,

1944

465

>•/•■

,

16,338
4,227

Charleston A Western Carolina
Clinchfield

.

Connections

753

;

t

Atlantic Coast Line.
Central of Georgia.

an-

the

Miscellaneous freight loading totaled 320,65tears, an increase
cars above the preceding
week, but a^^crease of 63,405
; cars below the corresponding week in 1945*
I
;
'
•
t

879

Hill, Thompson & Go.

Received from

1945

396

AtL A W. P.—W. R. R. of Ala

of 71,073

.107,750

1946

Atlanta, Birmingham A Coast

211,001 cars, or 25.2%, and a
'same week in 1944 of
183,813 cars, or 22.7%.:
: i
•
Loading of revenue freight for the week of June 1 increased
55,311 cars, or 9.7% above the preceding week.;.,;^sw**V fy&w:

"C.

Total

Alabama, Tennessee Si Northern

corresponding
/decrease below the

of

Total Loads

Railroads

Revenue Freight Loaded

er«& iTune 1, 1946,
err$|d. Jr

freight for the week

revenue

;

■

SoBthern District—

Compensation for delinquent
filled from stock, and other
Items made necessary adjust¬

reporting

identical

ceeded production by

by 5.8%.

mills*

ex¬

6.6%; orders
••'■''hr-

Compared to the

average "corre¬

sponding week of 1935-1939, pro¬
duction of reporting mills was
5.6% below; shipments were 5.5%

below; orders

were

11.9% below.

.

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'>■.,

THE COMMERCIAL & FINANCIAL CHRONICLE

3276
■

'

Thursday, June 13,1940

:hA
■fit'.u

Frank G. Rogalski, Cashier, of the
primary organization.

Items About Banks and Trust Companies
(Continued from page 3265)

rr'rif

time made Assistant Cashier

cerned with the servicing of com¬

same

mercial

and Assistant Trust Officer."

and

lending

business,

general administrative work.
:

The., .stockholders of the State
r of
Albany, N, Y, and the
Peoples Bank of Johnstown, 1ST. Y.
on June 28 will meet and vote on
the proposed merger of the or¬
ganizations. The Associated Press
reported the following on June. 7,

Banfc

"

A favorable two-thirds vote by

stockholders and approval by the
New York State Banking

ment

are

Depart¬
Under the

necessary.

which will be. effected oh

merger,

July J,. the Johnstown bank would
the

become

:

the Albany
V■: ■'Virhffi:-;■

Peoples

Branch

of

bank.
•

-

J

.

'

vaaa

■■

-'"A

m, lha:i United States Trust Com> pan y, "of Boston, Mass., recently
.

'

called,' for redemption, its 45,000
shares of convertible preferred
stock. The stock will be redeemed
''AA;
;

'_7

lail

Jhly 1 at the rate of $22

eh

a<A<

per

shares plus '40
•

was

cents dividend, it
stated in the Boston "Herald"

ton June 3, which likewise said: tv
\ The
stock is convertible into
common, share for share, at the
option of the holder, prior to 3
pjn: June 27.
'A
va;a| ;!:Av
A®
Ahiissue bf additional common
stock to take the place of pre¬
•". i-v-

■&M

0

ferred stock unconverted and re¬
deemed has been underwritten

Alt

'T&e^. Industrial
Providence, R. I.,

of

Co.,

Trust

June 1 took
oVef The Phenix Trust Company,

%%
Mm

by

Hothblower & Weeks.

on

■mm of;1. West Warwick, R. I. The
At A
^weekly Bulletin of the Board of
v

:

Governors of the Federal Reserve

;
1

Systbm states that in connection
with the absorption branches were

established at Phenix, in the town
Warwick, and the village

of West

of

:

Apponaug#in the city of War-

wick;

v"ji'",:.-" mmm <'A->A.
Prom the Providence "Journal"

•r

of Jdne 1 the following was taken:
Stockholders
of
the
Phenix
I Trust

Co., several months ago de¬

cided to

First

The

Comptroller of the Cur¬
rency has announced the consoli¬
dation, effective May 18, of the
his'entire time to his real estate First National Bank of Upper San¬
agency.
dusky, Ohio, and the Citizens Sav¬
ings Bank Co., of the same city.
A: 'hW'
$2,000; to the Uflited These institutions have a capital
A; :■
!
Campaign for Health and Youth of $78,750 and $37,500, respective¬
as a memorial to Frank L. Baxter
ly. They are consolidated under
•of West Orange, winner of a Pres¬ the charter of the First National
idential citation who was killed Bank of Upper Sandusky and un¬
mm
aaa
in action near Kuyshu, March 29, der the title of "The First Citizens
-1945, has been made by the Sec¬ National Bank of Upper Sandus¬
ond;'N^
Bank of Orange, ky," with common capital stock
N, ft* where he was employed be¬ of'$175,000, divided into 7,000
A-jA
fore, entering the service, it Was shares of the par value of $25
announced by Albert W. Olsen, each, and :k surplus of $175,000.
•Campaign Chairman;
■

'Mi

■

stockholders of record June 6 in

National Bank in

Mich.,

The

case

was

taken to the U. S.

Supreme Court.

of the operation of the bank for

the past four years since the death
of J. A. Thornbureh. President."

directors of the First Nar
tional

Bank

recently

of

voted

Memphis, Tenn.,
0 The Standard Bank of South
unanimously; to Africa, Limited, announced on

recommend to the stockholders

an

increase in the capital stock of the
bank from $1,800,000 to $2,400,000,

June 7 the election of John Nichol¬
son

Hogg to the board of directors.

it

was reported by the Memphis
"Appeal" on June 2, from which
we also take the following:
v,■;
;

''The

increase

would

be

made

Belgian Group Welcomed
By Wallace

Belgium technical mission,
through the issuance and sale of
30,000 shares of $20 par value which has come to this country to
exchange technical knowledge for
stock at a price of $60 per share,
the first time since 1940, was wel¬
as against current market quota comed into the United States on
tions of around $85.
It. is under¬
stood that the additional stock will May 27 by Secretary of Commerce
be offered first to present stock¬ Henry A. Wallace. The Washing¬
ton Bureau of the N. Y. "Journal
holders at the rate of one new
share for each three shares held.
The

stockholders'

which

the

meeting

recommendation

at
will

be considered is to be held soon."

"■ Comptroller
of the Cur¬
announced on June 3 that
the Broward Bank and Trust Co.,
Fort Lauderdale,
Fla., a State
bank, has been granted a national
bank charter.
The organization
will be known as the Broward

0 The

rency

of

Commerce"

in

reporting

Vice-Presi- Marietta, Ohio,

on

Export

:

their

possibilities

critical

needs

supply

to

be

will also

explored
and
the
possibilities
through private trade channels for
exportation of Belgian goods to
this country.
.

-

burgh, "Post Gazette."
,Mrf,Uuglin was formerly Presi¬
,

dent: 6f

the

,

(

Pitt National

Bank,
Pittapnrgh, the business of which
iwaa .recently taken over by the
Farmers Deposit National Bank,
as Reported in the "Chronicle" of
May 9, page 2572.;t;^:;::;;:^V-';:'^^;v'
.

,

.

iam H.

Tomlinson

A.

and

Heap.. Swift, Jr.,

were appointed
Assistant Cashiers of the CentralPenn

National

Bank;

Philadel¬

phia^ Fa., it was reported by Phil¬

adelphia

"Inquirer"

on

June

which also said:

../Harry W. Schaubel

7,

The

Comptroller of

the First National Bank

rollton,




Cur¬

mission

to

stock from

sale of

at Car-

Ohio, has received
-

increase

its

per¬

capital

$100,000 to $150,000 by

new

stock,

The Comptroller of the Currency
announced the issuance of a bank
charter

on

May 17 to the "Citi¬

National Bank of Chicago,"
Chicago, 111. The new bank will
have capital stock consisting of
zens

$200,000 all
was at

the

rency announced on June 10 that

common stock.

T* H.

thelGolightly will be President

and

Sale of the First Trust & Sav¬

ings Bank, Moscow, Idaho; to C. I.
Canfield of Ogden, Utah, and Wal¬
ter E. Cosgriff, Salt Lake City,
was
announced
on
June
6 by
President Hawkins Melgard.

The transfer of stock valued at

$500,000 is effective as of June
United Press advices reported.

2,

special meeting of the
stockholders of the Union Bank &
a

Broadway and

39th Street, a copy of the original
instrument of surrender signed by
the
Japanese
Government
at

Tokyo Bay

on

September 2, 1945,

and accepted by General Douglas
MacArthur
as; Supreme
Com¬
mander for the Allied Powers.
The
document
also
bears
the

signatures of the representatives
States, Republic of
China, United Kingdom, Union of
Soviet Socialist Republics, Com¬
monwealth of Australia, Dominion
of Canada, Provisional Govern¬
ment

of
the
French Republic,
Kingdom of the Netherlands and

Dominion of New Zealand.

0

The Baltimore "Sun" papers an¬
nounced

on

sale! price

May 29 that the street
of

the

Associated
also said,
Home

Press ? advices,

delivery tates and sub¬

scription rates outside-the 'Balti¬
suburban delivery zone also
will be increased, an announce¬
ment

appearing

on

<<Sun" disclosed.:

the

The

The annual meeting of the Mary¬

Association elected

Frank W. Wrightson
as

President
as

and

the front page

Thursday.: edition of the

0

announcement

;
said

that

"large and continuing increases irk
costs of operation make it neces¬

sary

to. establish

new

prices." ~

The price of the "Sunday Sun"*

of Baltimore
T.

which

more

Belgium and the United States.

land Bankers

and

from three cents to five cents on
June 2. We quote from Baltimore

of

Maryland Bankers Elect

"Sun"

"Evening Sun" would be increased

the restoration of trade between

Duckett
At

at its main office at

this

^

mm>

Sterling National Bank & Trust
Company, New York is displaying

said:

of
The, mission .will be in this
June 4 in¬
country from five to ten weeks
dent of the. Farmers Deposit Na¬ creased its capital from $200,000
and may be reached in care of the
tional "^ank, Pittsburgh,: Pa., on to $225,000 by declaring a stock
economic council of the Belgian
June 4 was elected to the board dividend of $25,000, the Comp¬
Embassy, Washington, D. C.
National Bank of Fort Lauderdale,
of .4me.<?tors of that organization, troller, of the Currency announced
Secretary Wallace has pledged
Fla.
-.v.'.-'".
on June 10.
it was,1 announced by the
the co-operation of this country in
The Citizens National Bank

Andrew J. Huglin,

Sterling Nat'l Displays!
Jap Surrender Pact

of the United

A

■

,

Country Banks Extend
Large Farm Credits
f

and

%

aa;

June

,

who has been named

acting manresignation of
Mr;
Handy becomes effective June 8.
};m
-Ho is leaving the bank to devote

the

on

,

„

ager.!(; The

of

Angeles "Times"

7 reported:
•■■.;• .0
MMm
"The new stock will be sold to

Howell, Howell, the ratio of one new share for
The nation's 13,000 country
The First State and each six held, at $100 a share, for
banks are extending more than'
Savings Bank of Howell was re¬ a value of $1,000,000.
The
Safe
$1,000,009,000 in credit to their,
Deposit and • Title cently announced by the
"Funds derived from the sale
farm customers to support agri¬
Guaranty Co. of Kittanning, Pa., troller Of the Currency;
will be added equally to capital
culture production, according to a
has become a member of the Fed¬
The institutions have consoli¬ and
surplus, increasing the capital
report made on May 28, by the
eral" Reserve System, it was an¬ dated under the charter and title
account to $7,000,000,"
Agricultural Commission of the
nounced by President Ray M. Gid- of "First National Bank in Howell,"
American : Bankers
Association.
ney of the Federal Reserve Bank with
common
capital stock of
Earle R. Hilbert, Vice-President, The
report shows that non-real
of Cleveland.
Member banks in
$112,250 (par.value $100 a share), Banks and Bankers
Department, estate agricultural loans held by
the Fourth Federal Reserve Dis¬ and a
surplus of $38,000. The con¬ Citizens National
Trust & Savings all insured banks in continental
trict now total 723.
solidation was
effective at the
Bank of Los Angeles, Calif., died United
States aggregated $1,009,Founded '56 years ago with a close of business May 15.
;;
;;
on June 6 in Reno, Nev.
Mr. Hil¬ 600,000 on January 1, 1946, an in¬
paid-in capital of $135,000, the
bert died enroute to the Idaho crease of almost
$100,000,000 from
Safe Deposit and Title Guaranty
It was
learned from the St. and Utah State Bankers
conven-^Uhe January 1, 1945, total of
Co. now is capitalized with $115,*
Louis "Globe Democrat" of June tions.
$917,400,000.
The
current out000 of preferred stock, $135,000-of
Mr. Hilbert entered the service
7 that Robert N. Arthur has re¬
standing loan volume is nearly
common
stock, $225,000 surplus
of the Citizens National Bank in double the amount of farm
pro¬
and $191,941 in other capital ac¬ cently been advanced from Assist¬
ant Trust Officer to Secretary of 1923.
After serving as manager duction loans held by the banks ill
counts.
Deposits aggregate $6,of several branch offices, he was
the Mercantile-Commerce Bank &
1937, the report continued.
^
600,000.
Trust Co., St. Louis.
He succeeds elected a Junior Vice-President
These figures arranged by the
■; ■ '.;'yMM- M mMM mmM' J. J. Farrell.
in 19370 and transferred to the American ; Bankers
Association
At a
special meeting of the
Banks and Bankers Department in from data of the Federal
Deposit
stockholders of the Bank of Com¬
June of 1945.
In January, 1946, Insurance Corporation do not in¬
Following a meeting of the
merce
& ' Savings,
Washington,
he, was elected a Vice-President clude loans from banks not in¬
D. C.; held on May 31, a plan to board of directors on June 5 of of the bank.
sured by that agency. From these
the Federal Land Bank of Louis¬
triple the capital of the bank was
non-real estate loans held by the
ville, Ky., it was announced that
approved, it was announced by the
The American Trust Co., San banks are. excluded bank. loans
a dividend of $500,000, or 10% of
Washington
"Post," which also
guaranteed by the Commodity
the
outstanding capital of the Francisco, Calif., has, on May 20,
said:
established a branch office, desig¬ Credit Corporation and all bank
"President Thomas J. Groom re¬ bank, was declared. 0 The Louis¬
nated as South San Mateo office, loans secured by real estate. Nonville "Courier Journal" of June 6,
ported th^t 93% of the outstand¬
in San Mateo, Calif., it was made real estate agricultural loans are
from which the above was taken,
ing stock was represented at the
known by the Board of Governors generally regarded as farm pro¬
session and approval was unani¬ went on to say:
duction loans as the banks pro¬
of the Federal Reserve System.
"The stock is owned by national
mous.
vide credit for their farm cus¬
farm 'loan associations in Ken¬
"The proposal, which increases
tomers to purchase seed, farm A. O. Johnson, Executive ViceTennessee and
capital from $100,000 to $300,000, tucky, Indiana,
equipment and machinery;
Ohio. In turn, farmer members President of the Forest Grove Na¬ breeder and feeder
now goes
to the Virginia State
livestock, and
own: a like amount of stock in tional
Bank, Forest Grove, Ore., forother a gricultural: purposes
Corporation Commission for auth¬
*
and active in affairs with the Ore¬ which contribute
orization. Under the plan, 2,000 their farm loan associations.
directly to the
"About 35,000 such farmer-mem¬ gon
shares of new stock will be issued
Bankers
Association, has production of crops. ■
and present shareholders will be bers Will share in the dividend if taken over the management of the
The largest increase in use of
of
the
land Federal
Savings & Loan Associa¬ non-real estate bank credit oc- *
given "rights, to
purchase two recommendations
shares of new stock for each share bank's directors are followed. The tion at Hillsboro, Ore., announced curred in California, where loans
board suggested the associations the Portland "Oregonian" of June
of stock now held."
outstanding on January 1 of this
pass half-the dividend on to their 7, which went on to say:
year aggregated $91,800,000, com¬
"He succeeds to the position pared with
stockholders, retaining half to
$65,000,000 the year
Harry G. Meem, President of augment their reserves and sur¬ held
by J. M. Person for the past previous. The use of bank credit
the Washington Loan & Trust Co.,
20 years.
pluses.
,.
, r
Mr. Person, who organ¬ by farmers increased ih all states
Washington, D. C., announced on
"The dividend was the first de¬ ized the
the
savings and loan institu¬ with
exception
of
South
June 6 the election of J. Edward
clared by the bank since 1931. It tion in 1925 and built it up to its
Dakota, .Nebraska, Kansas, Minne¬
Burroughs as a director and the was held
up two years by a suit present asset total of $3,000,000, is sota, and Missouri..
elevation
of
Leonard
Marbury
recently decided in the bank's retiring.
from Assistant Trust Officer to
favor.
More prosperous associa¬
"Mr. Johnson's position at the
Trust Officer, reported S. Oliver
tions sued to prevent the bank
Forest Grove bank has not yet
Goodman writing for the Wash¬
from distributing part of its funds
been filled, it was said.
He has
ington, D. C., "Post."
to less prosperous ■ 0 associations. been executive
officer in charge
/

liquidate that bank. The
change was approved by State
banking authorities.
A quarterly dividend of 40 cents
Joseph H. Rawson will continue
as
manager
of the Apponaug per share was declared on May 21
branch, but Earl R. Handy, Treas¬ by the directors of the Ohio Citi¬
ure^ hnd Secretary of the Phenix zens Trust Co., Toledo, Ohio, ac¬
Trusif Co., who started at the main cording to the Toledo "Blade."
bank - at
Phenix
as
Assistant The dividend, the • first since the
Trea&irer in December, 1927, has December, 1945; payment of $1 per
resigned and will be succeeded at share, was paid on June 1 to
Phenix by Irving W. Carpenter shareholders on record May 25.

■\AA

consolidation

The

The Los

Howard will remain unchanged at 10 cents
in

Vice-President.

"Mr. Duckett," said the

the

city and 15 cents outside

Wash¬ Baltimore.

v

-

The

afternoon "Baltimore
"Post" of May 30
Trust Co., Los Angeles, Cal., on
News-Post" and the "Baltimore
in reporting this is President of
June 6 approval was granted to
increase the capital structure of the Prince George's Bank and Sunday-American" have\not yet

ington, D. C.

.

the bank by 10,000

shares of stock. Trust Company, Hyattsville Md.

announced increases.

"