Full text of Commercial and Financial Chronicle : June 20, 1946, Vol. 163, No. 4500, Section 1

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BUS. ADM.

Final Edition

ESTABLISHED 1839

in 2 Sections-Section

Reg. XT. S. Pat. Office

{Volume 163

Number .4500

New York, N. Y.,

Thursday, June 20, 1946

Price 60 Cents

Copy

By PAUL FJNZIG

London observer reports relief in
British official circles bit Mr, Vin¬
son's transfer to U. S.
Supreme
Court. Holds former Treasury Secre¬

tary forced

a hard bargain on Britdrawing up terms of Loan
placed Lord Keynes and pres¬

sain in

and

Chancellor of Exchequer in dif¬
ficult position. Better Anglo-Amer¬
ent

ican relations looked for,

LONDON, ENG.—There

can be
doubt about it that the reac¬
in British official circles to

tion

Mr,

Vinson's

transfer

from

Treasury

the
,

t o

Dr. Melchior Palyi

last year there
Paul Einzig

w as

ately
attitude noticeable.

immedi¬
change

While Mr,

Morgenthau would have been sat¬
isfied with the acceptance of the
Bretton
Woods
agreement
by
'

(Continued

on page

3378)

Pictures taken at Annual Sum¬
Outing of the New York Se¬
curity Dealers Association, appear

mer

3366, 3367, 3368 and 3369.

on pages

Index of Regular Features ap¬
pears on page 3396. •

*An address

Savings Bank Trust Company

and

L. E. Carpenter & Co.*

by Gov. Szymczak

before the Directors and Officers
Institutional

poration,
14, 1946.

New

Securities

York

Cor¬

City,

June

State and

Aerovox Corp.*

Prospectus

'•$

•frf,

Hirsch & Co

{>'

Cleveland

••'

'V >
v,

„

'3 (■?■'■>

•

...

y.>

\ 4/t

*■

PROSPECTu/oN

BOSTON
*
Troy
Albany

HUGH

PHILADELPHIA
Buffalo
Syracuse

Bond

Members New York Curb Exchange
46

WALL ST.

634 SO. SPRING ST.

NEW YORK 9

*Air

LOS ANGELES 14

30 Broad St,

NATIONAL BANK

New York 4

Tel. Dlgby 4-7800

Tele. NY 1-733

♦Firth

Carpet Company

Company

CANADIAN

SECURITIES

SECONDARY-

THE .CITY OF NEW YORK

Midland Utilities

Products, Inc. Com. & "A"

♦Universal .Winding Co. Com.

FINANCE

BROKERS

Company
Analysis

Preferred 1%:\
*

Kobbe, Gearhart & Co,

MEMBERS NEW YORK STOCK EXCHANGE

Members N. Y. Security Dealers
14 WALL ST.. NEW YORK 5. N. Y.
TELEPHONE-RECTOR 2-6300 ~

Prospectus

45 Nassau Street
Tel.

REctor

2-3600

Members

New York 5

Philadelphia Telephone:

Enterprise

6015

request

Members New
V

Reynolds & Co.

Ass'n.

Teletype N. Y. 1-576

upon

ira haupt & co.

request

INCORPORATED

Midland Realization

♦New Haven Clock & Watch Co.

MARKETS

BULL, HOLDEN & C°

Department

THE CHASE

H ardy & Co.

WrfoNG ara-COMPANf

Members New York Stock Exchange

CORPORATE

BOND

far Banks, Brokers

REQUEST

WholesdeWisMbufors

Baltimore
Dallas
Washington, D. C.
Pittsburgh
Scranton
Wilkes-Barre
SpringfieldNew Haven
Woonsocket

London

Geneva (Representative)

Bonds

and Dealers

1927

Brokerage

Service

BOOpjUND

request

64 Wall Street, New York S

1-210

Bond

'• h

INVESTMENT? SECURITIEa

25 Broad Si» New York 4, N. Y,
Chicago-

Established,

Members New York Stock Exchange
and ot^sr Exchanges

•

•;

HIRSCH, LILIENTHAL St CO.

Teletype NY

Prospectus

R. H. Johnson &Co.

Successors to

2-0(»«0

wanhatj/VN

Pratt's Fresh Frozen Foods

on request

HAnover

Municipal

Liberty Fabrics of N.Y.

Nu-Enamel

120

New

York

Stock

Exchange

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

REctor 2-8600

•

Bell

Teletype:

NY 1-635

and

Members

New York Security Dealers Assn.
52

WILLIAM

ST., N. Y.

Bell Teletype NY

New York

111

New

HAnover 2-0980

1-395

other

Broadway
York

* Toronto

*•

REctor 2-3100
Tele. NY 1-2708

Montreal

York Stock Exchange
Principal Exchanges

10 Post Office Sq.
Boston 9

-'J,,

.'^^'HancocK 37S0
;;
-■

Direct Private

Wire to Boston

Thursday, Jufte 20,1945

THfi COMMERCIAL & FINANCIAL CHRONICLE

Trading Markets in:

ISenguet Consol. Mines*
Old Frisco Pfd. & Com.
,f

Lithbgfapli*^

Havana

prospectus

*with

}

;

■

Established. 1920
Members

'•

•• ••

•

Ass'n

Nat'l

Security Dealers Ass'n
Securities Dealers, Inc.

York

HA 2-2772

PL, N.Y. 5

40 Exchange

BELL TELETYPE

:
'

;• "

Bird & Son
*

inclusive plans. They disagree regarding
punitive measures and veto right. .American proposals viewed as. deft compromise between national
self-interest and international cooperation. McMahon Bill threatens oUr patent system.
/
iflUNTER COLLlbE, N!EW YOR&/ Junel9.^nteati6n ol tKfe "ttwnic EJrietgy Commissio«^ets|Imted Nation activities orr>ft entirely fiew plaite—pne of rbtyityy The muchpul)licizeci"and"dramatized Security^Cpuncll has--- with the lieated verbal brickbat," the
walk^utj aiid the veto^ta^d>dr^m^idT^foA^es^pf uiarealistio <jld4ashioned diplo-«
macy. The Economic and SociaLCodneil, for
.itsvfally 5^ems to be conducting its
pious endeavors in a dream world. Oh the other hand, the new Atomic Commission veryevi*
dently realizes that it must ccjme to grips, promptly and, practically, with a problem on
whose determination depends: the immediate and long-term future of civilization.
Gromyko for Soviet expound detailed

NY 1-423

Adding to the
and

Investors

:l;[.,

Mammas Inc.
Common''

cern e

Bought—Sold—Quoted

Steiner, Rouse & Co!
Members New York Stock

HAnover 2-0700

governmentally have resulted unsuccessfully.
which have recently occurred, he asserts agreements
of private, semi-private, and governmental nature will continue to
be made for these purposes: (1) to avoid cut-throat competition
as in rubber;
(2) to regulate and expand production of scarce
goods as wheat and cocoa; and (3) to eliminate political tensions,
as in oil and tin.
Warns such agreements must be divorced from

beA. Wilfred May

wea¬

And also, as stated here to¬
day by both Messrs. Cadogan of
Great Britain and
Gromyko of

pons.

Rogers Peet

Mississippi Shipping
Electric Ferries
'V

-j."' '* !}

fv.

¥anderhoef &Robinson
Curb Exchange

Members New York

31 Nassau Street,
•->

New York 5

COrtlandt 7-4070

telephone

Boll System

to share
do not pos-?

secret which they

Edward A. Purcell & Co.
Members New York Stock Exchange
Members New York Curb Exchange

their

reiterated

maxim that "scientific

knowledge

and / with

sessj

the world at large,"
to be somewhat

belongs to
Moscow

seems

"gradual" than' Washington.
The two real and serious areas
of
disagreement
between
the
less

Teletype NY 1-1548

(Continued on page 3384)

among

haps for years.
The
so-called
substitute

the Big

Three Powers

well

smaller and of
b

a c

w a

countries,

Common Stock

of the

use

Recordgraph
'

materials,

and

kindred

new

—

Frank C.Masteison & Co.

ma¬

raw

changed the
international raw material equi¬
librium. Moreover the widespread
trend towards industrialization in

quire a newl;
inventory of
raw materials

Commodore Hotel, Inc.
★

terials have basically

te-c

(Va.)

Detroit Int'l Bridge

sium

status

the

Central States Elec.

synthetic rubber, rayon
and coal oil, and the increasing
use of plastics, aluminum, magne¬

such

in 4

Broadway WHitehall 4-8120

Bell System Teletype NY 1-1919

coming months and per¬

the

for

relations

the

Jockey Club

monopolistic abuses.9 Declares an International Cartel Control
Office, in lieu of International Planning Agency technique, should
be created with aim of freeing and expanding raw material markets.

have to

will

With the Soviet anxious

I*referr6d

Common &

Monmouth Park

joined in the industrial field. ,
The keynote of the American
fsf In the postwar economics of raw materials the conversion to
control plan, presented by Mr,
peace-time conditions cannot aim kt "business as usual." FundamenBaruch, and of the Russian pro¬ tal political
and Asia reveal that there will be
posals expounded by Mr. Gro¬ and economic.,
an immense scarcity in foodstuffs
myko here today, is "gradualism." changes in

Common

efforts

USSR,

Chicago Corp.

raw

kets

discovered
deadlier

Adams Hat

material mar¬
After detailing

regulate

basic changes

control
still

N. Y. 1-1227

Bell Teletype

branch offices

Soya Corp.

School for Social Research

Mr. Haussman asserts past attempts to

with future

Stock Exchange

our

Textiles, Inc.

only with the
already dra¬
matically pro¬

Broadway, N. Y. 5
WOrth 2-4230

NY 1-1557

New Orleans, La.-Birmingham, Ala

By FREDERICK IIAllSSMAKN
Member of Faculty, New

bomb, but
potentially

Baltimore

Exchange

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

Central Public Util.: 5 %■

ven

120

International Raw MaterialTrade

not

Bought—Sold—Quoted.

Regulation in

Difficulties of

the

present p r oceedings is the
fact that they
really are con¬

4- ;

I,'

;

Direct wires to

import¬

ance

Miles Shoe

•Members

>■i/VrV-..*.*•

.;•..

Pacific American"

practicality

Common

•

KING & KING
New

WILFRED;MAY;v3^;;

Oerity Mich. Die*
<

General Machinery
*

M:'V
Baruch for U. S. and

;Pfd. & Com.

UN Attempting Atom Control

York Curb Exchange

Members New
64

WALL ST.

NEW YORK 5

Teletype NY 1-1140

HAnover 2-9470

All American Aviation

and

Capital Stock

Home Title

Common

Guaranty Co.

Common

terials.

Struthefs-Wells
Common and

Dr. F. Haussmann

of raw ma¬
At the moment no such

balance has yet been

preferred

•

drawn.

Bought—Sold—Quoted

v'v: '•

;' V ai.

.V'v'v-v '

Postwar Changes in

the Raw

Material Markets '

H. 6. BRUNS & CO.
20 Pino Street,

New York 5

frfC PONNELL & To.
•

New York Stock

Exchange

New York Curb

Telephone: WHitehall 3-1223

Exchange

Bill Teletype NY 1-1843
: :

Boston &

grains.
The present catastro¬
phic food crisis, however, and im¬
pending mass starvation in Europe

Boston Terminal
•>

TeL REctor 2-7815

R.R.

Markets in V. S* FUNDS for

canadian banks

'•?

"■'t-

7r"-

Canadian Securities Ilep't.

;

^TcevietmAGompan^
Members 3ST. Y. Security Dealers Assn.

27 Wall St^ N. Y. 5
Bell

Hanover 2-^4850

all: nations

"newest

the

that

NEW YORK.6, N. Y.

Issues

Consolidated Film Ind.
Consolidation Coal

Gude, Winmill & Co.
Members New York Stock Exchange

:4WaiI St.R.Ne#VolfK;& 'tiJt.'.:
Teletype NY 1-95S

DIgby 4-7060

raw

Sugar.
Associates

materials'*

very

Eastern

ambitious

"Balance between inter¬
employment and unem¬

world." It

ovetsimplificatioh to say
international ravy i materials

*'/ '".Aw"''-.Vt:...-.v*v.vfn

■■-■■Sv

sft-'y

Comihon

Quotations

Up6n Request

also'

Vinevitably;> sliding into ,a

are

and QtherPrincipal Exchanges^ r

115 BROADWAY

Teletypes—NY 1-1126 & 1127

All

Buckeye Incubator

ployment in the whole

-i;

ss/2000

Minneapolis & St. Louis R. R.

much

Not

Goodbody&Co.
Members N. Y. Stock Exchange

general regulations.

gency-

times

strong

he|

In emer¬
regulations

inevitable, and the turbulent

are

Teletype NY *-072

Telephone BArclay 7-0100

expansion" and even 'in
regulated complete "selfsufficiency"
as.
their
ultimate

slogan:

CANADIAN UTILITIES

Issues

Chicago, Mil., St. Paul & Pac.

state

and

0 i

"regulated

only

trade

national

United Artists
:

to
structural
And behind ~kill

All
-

Is there any hope

policy.

believe

tions

"A" & Preferred

'J ;a" v.*. "

Assoc. Gas & Elec. Corp.

is helped .by such
oversimplifications as "Reduction
of tariff barriers" or "Free access

canadian mines

Employees

rpaterials

raw

these problems, there loom ideo¬
logical controversies about general
trade
principles — and behind
ideological, there are practical
tensions of .economic and political

canadian industrials

Colonial Mills
Railroad

contributed

transformations'.

goal? /.

We Maintain Active

'47'

surpluses

power

Maine RR,

Stamped Prelerreds

•

port

Many experts have predicted for a return to a freer exchange
that
postwar
disturbances will of raw. materials and to freer
stem from considerable surpluses
markets, in an era in which na¬
in

I2U BROADWAY^ NEW YOR1C

against

countries

has

•

world's balance

the

and the growing aver¬

many

being too dependent on their ex¬

and the

bottlenecks in

Campbell
i

ances

sion

disturb¬

the

areas

new

recon¬

sideration

^Byrrtdun Corporation

F A It It

& CO.

Nevi: ¥01% Stdck Exchange
York

New
New

120

York

Curb

Exch. Assoc.

Member

Coffee & Sugar Exchange

Wale st., new

York

TEL. HANOVER 2-9612

(Continued on page 3370)

I —
.v

xv.

-*'«

For

Bowser Inc., Common

banks, Brokers &■Dealers

Industrial Brownhoist

ISarrlsburg Steel Corp.

Common-r-lst & 2nd Preferred*

Bought—Sold—Quoted

SOUGHT

Troster, Currie & Summers

Simons, Linbum & Co. ;
Members New York Stock Exchange

25 Broad St.,

New York 4, N. Y.

HAnover 2-0600

' Tele. NY 1 -2908

;

Member

New

York

Security

Dealers''. Association

Trinity■Place, ■ New- York; 6,-N. Yy

Telephone HAnover 2-2400
Private Wires to

International Ocean Telegraph Co.
Pacific & Atlantic Telegraph Co.

Common

Trading Markets

Common

Western Union teased Line Stock#

WATER SERVICE

Common

United Stove Co.

Jefferson-Travis Corp/

SCRANTON
SPRING BROOK

Teletype 1-376-377-378

Buffalo—Cleveland—Detroit—Pittsburgh—St. Louis

—

.SOLD

—r

Southern & Atlantic

QUpTfD

Teleg. Co. f

jEmpire & Bay States Teleg. Co. |
! Bought •
sold - / quoted
'

J*G-White & Company
»

37 WALL

INCOKPOkATEO

STREETJ

;

ESTABLISHED 1890
TeL HAnover

2-9300

*■

Arnhold and S. BleichroederI

NEW YORK 5

,/p'g.O

Tele. NY 1-1815

INC.

30 Broad
WHitehall

St.

3-9200

New York 4
Teletype NY 1-51»

.Volume 163

Price Inflation—A

The Background of the
National Advisory
(First of

liCHTtnsTfin

AND COMPANY

liOVE THAT DOG!

By HON. ROBERT E. IIANNEGAN
Postmaster General of the United

By HERBERT M. BRATTER

States'

That's

Chairman, Democratic National Committee

Washington observer points out National Advisory Council oil
International Monetary and Financial Problems, whicb was set tip *
to advise and guide U. S. agencies, also representatives on Inter¬
national Fund and World Bank, on foreign loans, financial, cxchange or monetary transactions^ bas been getting a good deal of
practice id negotiations of British and French loans* and cites
rumors of differences within its organization.
Gives background of > *
legislation setting up NAC and Advisory Board of Elport-Import
Bank, and concludes NAC powers are more specific and far-reaching

Symptom of

Council

by Mr. Bratter on the NAC)

Series of Articles

....

FINANCIAL CHRONICLE
&

THE COMMERCIAL

Number 4500

•

right

stojek that

Leading Democratic Party spokesman, asserting" our labor troubles
are due to disease of "give me," contends producers are
operating
at high profits and to maintain these
profits, they are setting prices
beyond the workingman's reach. Attacks Opponents of price conhrol.and defends Administration's wage-price policy as well' a^lts'-IV
stand against "irrespotisibles,'r such as reckless labof lenders aind
businessmeR. Sees "appalIing effects" if price Control is removed
or crippled.
Says that in national interest government can force
workers to end a strike and accept a settlement.
—

seems

love that dog ol a

and nobody else

you own

beep

Don't let it

want.

yob housebrdkenj

it over to

turn

for cash.

■

Obsolete Securities Dept.

STREET. NEW YORK

99 WALL

Telephone WHitehall 4-6551

Cadillac

Book

it its full title the National Advisory Council
Financial Problems, has been getting

The NAC, or to give
on

International Monetary and

■

good deal of»—
:
practice since eign loans and lend-lease settle¬
the publication ments have been announced.
of our earlier
Latterly in one of the nation¬
article in the ally - circulated Washington col¬
umns there was published a de¬
"Chronicle" of
Nov.
8, 1945. tailed and circumstantial account

During the in¬
terval the ne¬

far

imMmm
t

been
M.

Bratter

Federal

conclud¬

the;/Bret- posing the then pending credit to

ed,

ten Woods in¬

stitutions
and

were

have

France insofar as it was motivated

set up at Savannah •by political
considerations.
themselves NAC
thereupon
approved

(Continued

i€ederal Debt Management

the

cus¬

United

United States. And unless
our

the

join
felloW-Americans in doing so,

diate problem

*An

in the admin¬

before

istration

Chapter, National Association of
Postmasters, St. Louis, Mo., June

and

operation
of
the mails goes right down to basic

address

and

tive dates held based upon

Missouri

trade custom and not improper.

registration.

-'s

Republican member of House Banking Committee stresses import¬
of National Dsbt management as related both to commercial
bank earnings and Treasury's finances.
Sees no immediate action
by Congress regarding changes in bank credit regulations, and notes
that Treasury and Federal Reserve policies may differ.
Sees
Treasury holding to low interest rates as fiscal measure, and paints
out that Federal Reserve no longer has power to control credit as
originally contemplated. Holds increased production will not offset
inflationary trends, and thai commercial bank earnings have now
reached their peak.
Reviews proposals for new bank legislation
and urges their prompt and serious consideration.

j.F.Reipjr&Cd.,int.

1 40 Exchange PL,. New York S
NAnover 52-4785 ^ TV^NY 1-2733-4-5

This

"Unless

Believing it is highly beneficial to the Congress and to your
us to meet together, I am here today for this infordiscus¬

ing of the war expenditures inci¬
dent to the recently ended world

Rlctunond 4321
" i4

;

keep

the

Member
a

the

(Continued

story I wish to tell
one of those former¬

(Continued
*An

address

on page

con¬

Bankers

ice which you

Penh., June 14, 1946.

have

Thiokol Corp,

Axelsdit

Cranipfon IVIfg. Cow:-. ■'
Billings & Silence
Laclede-Christy Products

t/iBiop

[o.m

Members New York Security Dealers Assn.

170 Broadway
Bell

- *»-

WOrth 2.-0300

Systent Teletype NY 'i-S'l

Haytiaii Corporatiosi

3380)

Alegre Sugar

Punfa

are

interested in

Lea fabrics

offerings of

TJ. S. Sugar

Public Utility

American Bantam Car

and Industrial

PreSsurelube, Inc.
Susquehanna Mills

PREFERRED STOCKS

flit:

Spencer Trask & Co.,

L. Crawford

Macfadden Pubs.

public.
Especially do

the

I have in

fteto -YorS

always

rendered

you

Log Angeles

;■ ,'
Chicago

TRADING MARKETS

High Grade

Association, Philadelphia,

„v

Cleveland

Eastern Sugar Assoc.

3381)

Congressman
Crawford before the Pennsylvania
by

structive serv¬

on page

Congress

to you.
I am
ly and presently closely associated
banking and business gen-

telling and of
course I refer
to

there too is

should

forever

registration statement is in effect as to a
security, it shall be unlawful for any person, directly or
indirectly—
to make use of any means or instruments of trans¬
portation or communication in interstate commerce or of
a

Private. Wiiress

Boston
a

1933, Section 5 (a) (1).

3
TWX CQ 616

Devonshire St., Boston O

Test

......

conflict.

and to
the people
about your in¬
dustry
that
gress

you

provides:

Chicagd

i 39 So. L* Salle St.,
Randolph 8924

is contained in the Securities Act of

banking industry for

story to tell
to
the
Con¬

Prospectus on Jtequcxi

There has been some misunderstanding respecting the
rights of underwriters relating to selling issues where the
registration statement is on file with the Securities and Ex¬
change Commission but is not yet in effect.
That question was projected into public interest by the
Securities and Exchange Commission in the past and more
recently it again arose in the matter of Columbia Gas &
Electric Corporation.
The interdiction against dealing in securities where a
registration statement is in process, but not yet in effect,

ance

Teletype fJY 1-1203

MATMIAL^ CORIV

7, 1946.

of violation HeS in acceptance of an order before effective hour of

Congressman from Michigan

sion. You have

0, N. ,V.

PLASTICS

by Mr. Hannegan

convention

Statutory prohibition against trading in new issues before effective
date of registration statement.
Inquiries between filing and effec¬

Bank/Earnings

mal

Broadway

New York
HAnover 2-8970

(Continued oh page 3376)

greatest
and
most
imme¬

Issues in Process oi Registration

By IION. FRED L. CRAWFORD*
S.

Common

Dye

J. GOLDWATER S C0.

Piece

Members New York Security Dealers Assn.

the

3377)

on page

United

interrup¬

few days ago.

We can¬
employees of
States, but we can
help to solve it as citizens of the

Today,

however,

Robert E. Hannegan

;

problem today.

our

Pfd.

The

established

Washington, and various for-

Estate

61 Broadway

not solve it alone as

have

tom.

Chairman

Reserve

riner Eccles were disclosed as op¬

It is

wish to break

Wallace and
Mar-

of Commerce Henry

have

tion of the mails

occa¬

with that

at the heart of the

was

for

sions.

/I I

economy.

our

That factor—basiq economics-

and

other

generally accurate one, so
can be learned — disclosing

and

national

eco¬

politics

leave

nomics

agreements political factors in the making of
wit hit h e foreign loans by American Gov¬
United King- ernment entities./ There Secretary
France

Herbert

f differences of opinion within the
financial NAC as to the consideration of

gotiations

economics, to the soundness of

operation
of
the mails, and

Real

Schulte

—and

Cofnmodbre Hotel

In addressing friends and fellow-workers'in the Post Office, it is
customary for the Postmaster General to take up problems of administration ' and4>
i
' M.
6 "n ■!,'.!> -

25 Btoad Street, New York

mind the signal service

rendered to the public and
Government in the financ¬

DUNNESCO.
Members New fork Security Dealers Assn.

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

Foote Bros. Gear Mach.

Teletype NY 1-5

Telephone HAnover 2-4300
Members New York Stock

to the

WBitehali i-0273---Teietype NY 1-956

Exchange

Private

Wire to Boston

La Plant-Choate
TITLE COMPANY

♦Parks Alrcrafi

Ohio Seamless Tube

CERTIFICATES
Bond & Mtge.

Guar. Co.

Sales & Service; It&Oa

Victor-Monagban Company

Gisholt Machine

Lawyers Mortgage Co.

Miles

Shoes

Incorporated

National Radiator C^a

Common Stock

Public National Bank t

Lawyers Title & Guar. Co.
N. Y. Title & Mtge.

Co.

New

15 Broad St,
Bel!

York Stock Exchange

N.Y. 5

WHiteh^U 4-6330

Teletype NY 1-2033

Broadway

NEW YORK 4

Board of Trade Bldg.
CHICAGO 4

Digb.v 4-8640

Sold

—

Quoted

Trust Co.

Teletype CO 129

Hon Rose STrsster

Harrison 2075

Teletype NY 1-832. 834

";;

Member*

—

jadmbers :Nl Y. Security Dealers Assn.

Prudence Co.

Vewburger, Loeb & Co.

Bought

STRAUSS BROS.

ESTABLISHED 1914

74 Trinity Place, New

Direct Wire Service
New
/

York—Chicago^-—St. Louie

Kansas

City—-Los Angele*

Telephone:
BOwlln; Green 9-7400

Prospectus

Teletypes:
NY 1-375 & NT 1-2751

request

C. E. Unterberg & Co.
Members N.

York 6, N. Y.

upoti

Security Dealers Ass'n

Broadway, New York 6, N. Y.

Telephone BOwling Green 9-3633
7:.Teletype NY 1-1GC3
;

-1/

THE COMMERCIAL & FINANCIAL CHRONICLE

A Fear

Thursday, June 20, 1946

Campaign to

Perpetuate Controls
actual markets

By HON. B. B. HICKENLOOPER*
k

•

ACTIVE ISSUES

Asserting Mr. Bowles uses "smear tactics/' Sen. Hickenlooper
accuses him of refusing to set prices on goods which would
permit
maximum production* Contends OPA has spent $2l/% billions on
"most beguiling, misleading and extravagant propaganda/' and
says recommendations of Senate Banking Committee do" not destroy
OPA but establish sound Administrative methods.

American Bantam Car

Amer. Window Glass*
♦

'Com. & Pfd.

U. S. Senator from Iowa

Assoc. Dev. & Research

facts regarding subsidies
points-he mentioned, and I assure you he is fully

Senator Tatt has accurately stated the
the

and

other

Automatic Instrument

supported

the?

§§: Barcalo Mfg. Co.?

before

the

Chicago R. I. & Pac.

Committee

Diebold Inc.

the

comm

Douglas Shoe*

this
M

Gt. Amer. Industries*

Asphalt

Michaels. Bros.?
Michigan Chemical
Missouri Pac.
Old

Pfds.

Mohawk Rubber*
Moxie

N.Y. New Hav. & Hart.
Old

Pfd.

N. 0. Texas & Mexico

Purolator Prod.*

Richardson Co.

Taylor-Wharton*

e e s

Bowles'

Full
Mr.

Taft

and

the

those who

tactics

smear

want

manent controls

has

not

reason

refused

been

is that
to

set

consumers' goods,

mass

that permit their
production.
Cheap
shirts, underwear, house dresses
and a host of other things are al¬

i cious 1 y

typical

the

many

cases,

maximum

Com¬

the

Senate, on last
evening, was not only
unfair, but it is

Tuesday
v

Cur¬

has

The main

Bowles

prices

rency

mittee

before

production

attained.

upon

and the Bank¬

Hickenlooper

introduced

the House and the Senate and the
Senate Small Business Committee.

situation.

ing

Jessop Steel
Mastic

dence

Banking and Currency and the
Agricultural Committees of both

into

Senator
B.

Lanova*

i 11

attack

Hartford-Empire Co.*

the

proved by the overwhelming evi¬

other

looking

statements, sentence by sen¬
can be utterly disproved
by
facts, and they have been dis¬

tence

Senate

and

District Theatres!

his

Banking
Currency

and

Pfds.

over this
Tuesday evening was
astounding—with few exceptions

network last

intro¬

duced

-7''

—

q Mr. Bowles' radio talk

whelming evi¬
dence

Cinecolor
Old

over-

most

unobtainable,

but

luxury

items and expensive merchandise
seem to be plentiful.
The War in

establish per¬
our American

on
Germany ended over a year ago
It is; representative, of and in Japan ten months ago. We
a new
technique in a fear cam¬ began reconversion over a year
paign that should be exposed to ago, but we are still struggling
the American people.
with shortages of necessities, and

economy.

the
Since when have the American with
delays, incompetence
people been afraid of free enter¬ and stupidity of OPA.
Vital foods such as meat and
prise and free markets; since
when have we been afraid to turn dairy products are either off the

American
assure

production

arid

loose

market

"But why should I sell at 20'4—If I hold on I
may get 20V*ll"

J. Burke

in the Black Market at

Burke-Knapp, who has been serving as the alternate
is of Marriner S. Eccles on the National Advisory Council, is now As*

American recovery?

high
prices
although there
plenty in the country. The cream¬ sistant Director of the Federal Reserve Board's Division of Research
*Radio address of Sen. Hicken¬ eries are not producing butter and and Statistics, being in charge of research on international matters.
Mr. Knapp, a Rhodes scholar, studied at Oxford during 1933-3&
looper over Columbia Broadcast¬ cheese because of price alone—
The next four years he spent in the investment-banking business In.
ing System June 6, 1946.
(Continued on page 3395)
London, where he was connected®
———,,7
with Brown, Harriman and Co.,

Fitzgerald With Merrill

Ltd.

Tenn. Products

*Dumont Electric

Corp.*District Theatres Corp.
^Princess Vog^ie Shdps *EIect. Corp. of Amer.
f Citizens Utilities
f Le Roi Company

Thomas Steelf

Upson Corp.*
U. S. Air Conditioning

Vacuum Concrete

Special Letter

Members New

York Security Dealers

economic affairs.

New York 5, N. Y.

nical

Tel. HAnover 2-8080

Teletype NY 1-2425

delegation

Bought

;/ Sold"\.

advisors

the

Haile

Quoted

Pierce,

Dixie Terminal
Building. He has recently been In
the armed forces.

In the past

with J. S. Bache & Co.

was

American

meetings

The COMMERCIAL

and

FINANCIAL CHRONICLE
Beg. U. S. Patent Offlot

William B. Dana Company
Publishers

Mines

Herbert D.

Selbert,

Editor and Publisher

Great American Industries

EASTERN CORPORATION

William Dana Selbert, President
William D. Riggs, Business Manager.

^Capital Records

MIDLAND UTILITIES COMPANY

Aeronca Aircraft

Thursday, June 20,1946

■

Spec. Part.

•

'■

;'?7i?7'

Central National; Corporation

Southwest Natural Gas
Standard Gas Elec.

ESTABLISHED 1927

Prospectus

J.KJiice.Ji'.&Ca!
.

Bell

'V'77;

Security Dealers Assn.

2-4500—120

Teletype: NY 1-2948

every

(general

Street, New York I6,N. Y»

Telephone: LExington 2-7300

Circular upon request

Published

request

Established 1908

22 East 40th

iProspectaM Upon Request

System Teletype

Broadway
N. Y.

1-714

Ward & Co.

*Upson Company

Doyle Mfg. Com. & Pfd.

Central Paper

}€ST. 1926

*WeIlman

*Temple Coal Pfd.

$2%

n7'"' i\\- $%\i

*\*>

?■

Kingan Co. Common

Products

tation

records,

Seligman, Lubetkin & Co.
■

■

Incorporated

•'<

Members New York
Security Dealers Association

Broad Street, New York 4

(New)

HAnover 2*2100

SIEGEL & CO.
39 Broadway,

N.Y. 0

advertising Issue);

corporation,
8.

banking^
:s

Salle

Sfc*
111.
(Telephone: State 0613) 1
1 Drapers' Gardens, London, E. C., Kngi*
land, c/o Edwards Ac Smith*
Other

Chicago

Offices:

135

Reentered
York,

Dlgbjr 4-2370

Teletype NY 1-1941

Company
second-class matter Fel>«

25, 1942, at the post office at New
N. Y., under the Act of Mudfe

1879.

Subscriptions In United States and
Possessions, $26.00 per year; in Dominion;
of Canada,
$27.50 per year; South and
Central
America, Spain, Mexico, and
Cuba,
$29.50
per
year;
Great Britain*
Continental Europe (except Spain), Asia*
and

Australia
■■

Thursday

news and

■"
/.

(complete statistical issue—market quo*

Soya Corp.

7 Columbia Aircraft

request

week

Great American Ind.

Textiles, Inc<

•Descriptive Circulars
:

Engineering

dealings, state and city news, eto.)

ruary

^Shatterproof Glass

^Tennessee Prod.

twice

and every Monday

ACTIVE MARKETS

Merrill Lynch,

with

Fenner & Beane,

Fund and Bank governors in Sa¬
vannah in March, this year?

MIDLAND REALIZATION CO.

Southeastern Corp.

Knapp

ated

REctor 2-9570 to 9576

Paget S'nd P. & L. Com.

•Bulletin

In 1945

Chronicl*)

CINCINNATI, OHIO—Lawrence
S. Fitzgerald has become associ¬

25 Park Place, New York 8

New England P. S. Com.

and

many.
Mr. Knapp was one of the tech¬

Association r"

American Gas & Pow.

of research

political advisor, Mr. Robert Mur¬
phy; working primarily in Ger¬

Victor Monaghan

(Special to The Financial

Knapp joined the

statistics, a position he resigned in
August 1944 to become the State
Department's advisor on German

52 Wall Street

Textron Wrnts. & Pfd.

Mr.

division

visor

Request

FIRST COLONY CORPORATION

Aspinook Corp.*

1940

Foard's

went to Europe as economic ad¬
to
General
Eisenhower's

Prospectus Available

fStatistical Study

Alabama Mills*

Cent. States Elec., Com.
Iowa Pub. Ser. Com.

Knapp Gels New Post at Reserve Board

Mr. J.

Africa,

$31.00 per year.

Other Publications

Bank and Quotation Record—Mth.$23y*i

Monthly Earnings Record—Mth...$25yr»
NOTE—On account of the fluctuation#
in the rate of exchange, remittances tot

foreign subscriptions and advertisement#
%

MAW

Volume 163

Number 4500

THE COMMERCIAL & FINANCIAL CHRONICLE

Rob!. Holt V.-P. cf

Bank Nationalization

Blair & Co., Chicago

In Czechoslovakia

CHICAGO,
Inc.

111.—Blair & Co.,
that Robert L. Holt

announce

has been elected Vice-President

charge sof

their.

Chicago

office,

135 .South

La Salle Street.' Holt
associated with A, C. Allyn Je

was

Co., Chicago, for 16
released
in

from

December

of Lt. Colonel.

and

years

active
1945

Army

with

was

duty

the

rank

Shaskan Summer Branch
Shaskan
New

York

Co., members
Exchange,

Stock

an¬

the opening of their Sum¬
branch office at the Nautilus

nounce
mer

Beach

Club, Atlantic Beach, Long
'

Island.

CANADIAN

SECURITIES

Bonds
Direct Private Wire Service

COAST-TO
New York

Chicago

SL Ms

•

COAST

Kansas City

Los Angeles
52

Laird & Co.

San

HAnover 2-0980

New York

Montreal

Toronto

Members New York Security Dealers Ass'n
32

Diego Gas & Electric
Virginia Water Service

West

ST., N. Y. 5

Bell Teletype NY 1-385

STRAUSS BROS.

Republic Drill & Tdo

WILLIAM

Broadway

Board of .Trade Bldg.
CHICAGO 4V

NEW YORK 4

DIgby 4-8640
Teletype NY 1-832-834

Harrison

Teletype

FRANKLIN SIMON

2075

Com, & Pfd.

129

GRAYSON

E. H. Rollins & Sons

Whit* a Company

: ST. LOUIS ;

KANSAS CITY

ROBINSON

Baum, Bernheimer Co.

;

Incorporated

40 Wall
Tel.

WHitehali

Boston

Street, New York 5, N. Y.

illiiSLOS

Teletype NY 1490

4-4860
Philadelphia

•

Chicago

San

NEW HAVEN CLOCK

Pledger & Company, Inc.
ANGELES

PIPER AIRCRAFT

Francisco

SAMPSON UNITED

American Insulator Corp.

Jeff.

Lake

Sulphur

Nickel Offsets, Ltd

Com. &. Pfd.

of Delaware
Common
"v

Jonas & Naumburg

i;jv?

:r■>'-~v

Bought—Sold—-Quoted

Common Stock

Prospectus

1st quarter of 1946

J. F. Reilly & Co., i*

Selling about 10.,

Exchange PI., New York 0 .1

HAnover 2-4785

study

request

Established 1914

T. J. FEIBLEMAN & CO.
74

Members New Orleans Stock Exchange

PETER BARKEN

New York 4, N. Y.

11 Broad St.

32 Broadway, New York 4, N. Y.

tat WHitehat) 4-6430

Request

Bought—Sold—Quoted

Stand. Fruit & S/S
Com*. & Pfd.

Against 170 in 1945.

Statistical

Lane Cotton Mills Corp,

Earned 460 per share in

:•

' ■

;

New Orleans 12, La.
*' Carondelet Bldg.

Bo. 9-4432

Tele. NY 1-2500

Bell Tel.—NY-1-498

Randolph 8924

Trinity Place, New York 6, N. Y.

Telephone:
V

NY 1-375 & NY 1-2751

St., Boston .9,

private Wires:

Cleveland

Los Angeles

■

„

Chicago
New York
,

Consolidated. Electric & «Gas Co. $6 Pfd.

INACTIVE

Firth Carpet: Company*

STOCKS-BONDS
Good bids for all stocks hard
to buy.

hard

true?

Sometimes
make

the

sell.

not

fool you

amazing

Getchell Mines

Suburban
V

\N J: "

trying

long to sell,

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

DIgby

4-0133

•*'«-'

* a

•'V

-s:;

•"

Equity Oil

•

.H''

Utah Southern Oil

*Prospectus

request

Circular

request

Bought—Sold—Quoted

FREDERIC H. HATCH £ CO., INC.

George A. Rogers & Co.,Inc
;

' 'i*1-, {4~

Bought-—Sold ■«—Quoted

Exploration Co.

bids for that old stuff you have
been

Propane Gas Corp.*

Tennessee Gas & Transmission Co.*

Master Tire & Rubber
Oil

*Kimiey Coastal Oil

Petroleum Hfcat & Power

Common
we

most

Espresso Aereo.

Dravo Corp. :

AH Issues

Good offerings of all

stocks

and

Hathaway Bakeries* Inc.

Established 1888
64 Wall St., New York 5

;;

Phone HAnover 2-7872 Tele. NY 1-621

I, MEMBERS N.
63

Wall

67 Wall Street, New
Y. SECURITY DEALERS ASSOCIATION

Street, New York 5, N. Y.

Bell Teletype

Telephone

NY 1-897

Richmond 4321 vv.c:^iW

•

Boston

TWX CG 616

6S 'Devonshire

Teletypes;

BOwling Green 9-7400

' TWX NY 1-2733-4-5

So. La Salle St., Chicago 3

York 5

HAnover 2-933S

Teletype NY 1-2630

.THE COMMERCIAL

3346

& FINANCIAL CHRONICLE

Thursday, June 20, 1946

Pfoducftion JRecofd Is Excellent

Need Nine Months More of OP A

By CHESTER BOWLES*

To Prevent Price Boom
,

Administration economist
ing
-

WASHINGTON, D.1 C., June 19—That the virtual disappearance
of price control this summer will be followed by rapidly rising prices
will

result of

the

shortages "has been excellent/1; and predicts by Christmas tight situation will be removed. Denies
production and asserts "as a general rule you don't get more produc¬

Someone ought to think of the
buying rather than the interactiph
of natural demand, and supply, social consequences of a cost-ofIn the ten or twelve minutes I'm
according to an' Administration living increase of, say, 25% or going to be with you this week, I
economist who
is closely
con¬ more during the next nine months, want to take
up some of our post¬
The
cerned
with
Government
price the "Chronicle" was told.
war production problems in detail
policy. Preferring to speak off the effect on people with fixed in¬
and give
record, this economist stated to comes is likely to be drastic. Con¬
you some idea
sider for example, among' things
the "Chronicle" that production of
of
where
% many manufactured articles has fixed in terms of dollars, the per¬
America
sonal exemptions, and credits in
been rapidly improving, as in-r
stands in this

zooming.
You've
yourselves.

—

income tax.

the

These

are

sup*

case,

system

they would surely have beep

;

inevitable

come

removed by the Congress, a specillative price boom such ps is now

lower

'•

several stores showed increases of

from 50 to 75%.

hi'-fci'i-v?'-'.«&V:

tires

-•

•>*<H• £•%'f~i

•.

f v;

^ \,v '•

L'-1;

I know

Common & Preferred

•••

■•irJf:'-'

y-y

Bought

—

blouse

ESTABLISHED

York 6, N. ¥.

Telephone!

Teletypes:
NY 1-375

BOwling Greeu 9-7400

—

NY 1-2751

transition period due to drastic changes in price and

a slip or inylons br a
shirt^only to have the

circle, aeeoriq^ipd^^ by

talk

Broadcasting

will

yy'-y

7f.

W-.'.

y--v: .>rt

—

will

Telephone: BArclay 7-5660

Quite

Hotel

Rhodes

Teletype: NY 1-583

American felt

8ro*dw«y. N. t. 4

jiox,

Tele, NT 1-M

Common Stock
-

:V-

•

A
<

V\'f

y"r

.'v

i' V?

Blair F.
■

-•

^ 1

ST.,

NltW YORK

'■*,

l:jt

■

address by Dr. Shook be-

Philippine Mining Stocks

Sold

—

'.r'1 mV--

r>-.

iv.y

42 Broadway, New

York

Steep Rock Iron Mines, Ltd;

Consolidated

Great Western

NY 1-1026

Joseph McManus & Co

^,;v "y-y
on

Brokers

\r.-

<<.»-r In

•

Ltd.
71 t

request

;) '

V,:/

dollar totals.

That buyers: will again havq

to become buyers in the true sensq
of the word.
They will have to

WHitehall

New York 6
Teletype NY 1-1610

Dealers
■■

Securities "

4-2422
Branch Office

ill

'■

Teletype
NY

1-2613
;;

3360)

page

Receipts

deposited A. P.

for

•- /•

113 Hudson St.. Jersey City. N. J.

"Wf*

Products Co., 1st

6s,'1948.

New York 5, N. Y.

Telepnone

Chicago Stock Exchange

Digby 4-3122

Investment

62 William SL

?9 Broadway

a much., larger physical
of goods to achieve th^

A. P. W-

Exploration

*Circular

Exchange

same,

on real merchandis¬
Retailers will have to

pn'EKINCS WANTED

V.T.C.
Park City

HIAHER & HULSEBOSCH
York Curb

depend

p,eriQd, retailers wil|

fheir profits once again

(Continued

MICHAEL HEANEY; Mgr.

New

•

that

Teletype NT 1-1525

Digby 4-6320

Securities

Members

the

This implies;'

111 BROAPWAY, NEW YORK 6, K. Y.

1922"

Established

WALTER KANE, Asst. Mgr.

Members N. Y, Security Dealers Ass'v

handle

*Can. Western Lumber Co.,

y'"u'-'c-4

conditions will again
^ ;j

ing ability.

Bequest

Members N. V. Security Dealers Ass'n

'iyy:.y;-y

'y,^

F. H. KOLLER & CO., Inc.
BArcl^y 7-0570

whatever' reaction follows it 'are

volume

CIRCULAR ON REQUEST
•

postereconversion period lasting
for several years.
v\. *.
In shorty after the present In#
ventory replacement boom an<|

In the later

•

Curb and Unlisted
>

during

activity will continue high

will

64'Wall" Street, New York 5
r

of the
Company, is
potentialities and

twp. periods ends. ; (>
early • period,; retailer^
could hardly help having large
sales and making large profits. ^!

Big Wedge Gold

Furnished on

Quoted

HAnover 2-1140

Economist

the

problems of this period for you on
Wednesday evening. I need only;
say this:
T'i-"
' '.
That retail sales and business

Quotations and information

Approximate Market 22^-23J/2
i

discuss

find

Member pf National Association
of Securities Dealers, Inc.
1

Paid $1.50 Annually 1939-1945
\

and

Manhattan

between the

Cons. Mines

'Mindanao Mother Lode

R. G. ILSLEY & CO.

DELAWARE RAYON "CLASS A"
/.

But at that point the similarity

0HN J. O'KANE JR. & CO

favorable,

very

be favorable to retailers.

Mining

Balatoc
Benguet

Super-Cold Corp.
—

to the

Conditions,

Approximate Mdrket 251/2-261/2

Congress

Common Stock

Paid $1.7£ Annually 1939-194$

Controllers

Boston 9

Linn Coach & Truck

NEW BEDFORD RAYON "CLASS A"

from

change

talk of

the

5, Ni Y.

LOOKING FOR INCOME?
f

•

Tele. BS 169

Cosmo Records

Bought

para-

WHITEHALL 3-0550
Tele. NY 1-2178
|
Harbsburg-Rittsburgh-lSyracuse-Miami Beach

Bank

completed,

Claybaugh 8i Co.

52 WALL

Robert C. Shook

•

Atok

lyfqmlMtM Philadelphia Stock Exchange

•'

you

S1*'

for Circular CC

period, right

Established,

througlvup

President

Convention, Chicago, 111., June 17,

Tel. Capitol 8950
•

•;

have

you

What
about
the
future, the
post-reconversion period?
- j
Mr.
1 Murray
Shields,
Vice*

quarterly dividend payer
Send

27 Ttate St.,

Tel. Dlgbf 4-1388

Cfo.

H. D. KNOX S CO.

MAGOR CAR CORPORATION

*An

A Sound Railway Equipment Issue

'ore
W-

all

tike

TO INVESTMENT DEALERS

that

present moment.
short, have been

favor¬

sound

Nazareth Cement

;;,r.;v.

know

sales volume and profits

but

still

•

assure

•^r
something
you that it

out the war

able.
I

BROADWAY, NEW YORK 5, N. Y.

120

different

Washington Properties
Commodore

o ns

will

no
great genius for the average
department store to achieve high

new

d i t i

that

Amerfcaq Vitrified Products

New York Hanseatic Corporation

had your daily problems. But the
fact remains that it has required

re-^

! o n

Victoria Gypsum

fa^

tailers, to

Tennessee Products

good

isn't.

that

wrable to

Works

something
good.
Let

con¬

very

vere

QUOTED

from

ditions

BOUGHT —SOLD

orevious

American Molasses Co.
Richmond Cedar

b^yers^|trika in

?o through a
period
of
change.
This change

Company network, June 15, 1946

Common

little first about the coming transition period.
Some time in the future, probably in 1947, retailers will have to
Let's talk

Bowles

Mr.

American

the

;

mark-downs; a drop in the average sale, and alughei cost of-inerchandising. Says prices in 1946 will advance between 15 and 25% ♦

say,

♦Radio
over

a severe

quality Tela*

tions, Dr. Shook contends despite strikes, civilian production is now 1
exceeding prewar level. Sees danger of repetition of £9294921,

"We had some just a
little while ago, but they're al.
gone."
'
But production on most items is
stepping up steadily.
The best
proof is the way Store Sales are
clerk

1914

Place,| New

74 Trinity

Apseriin^ within next several months retailers will face

lately.

or
n

Director of Research, Inter! Statistical Bureau, Inc.

buy. vi '•
i
lot of you have made

{rips

$1.45 billion. Add, from all indi*
(Continued on page 3384)
I

By DR. ROBERT C. SHOOK*

trying to

are

pretty disappointing

man's

history qf

Affecting Retailing

you

shop¬
You've gone
down to {your local's,ores—and
asked the usual questions abbut a

HOIlROSE SlhQSTER

whole

Economic Tendencies

other products

ping

':.v-" :

the

and

ofV: the

some

Sold—Quoted

—

selling.
One
mail-order
company reported sales of over

and

refrigera tors
v—men's shirts
and. suits and

i Chester Bowles
uV'-;■IB\
;
" '

corded

vacuum

most

ago—and

machines,

-cleaners

third

Last year, according to another
report I saw the other day, "de¬
partment stores, specialty shops',.
chain stores and mail-order corn**
panies piled up the greatest dol¬
lar volume of-business ever re¬
retail

a year

the

iri-r

•

than

high

out the wash¬

groups.

American Bantam Car

were

again

ing

'Illustrative of production prog¬
been ress, this reporter was told, is the
(Continued on page 3355)

have

could '

iavoided^-f J

oppressive

s .ores

job of getting

Were present price controls per¬ posed to have some relationship to
mitted to continue another nine the cost of living. Soaring living
months or a year, when in any costs will tend to make the tax

that

noticed

According to the New York
"Times," average sales in May for
some
of
the
country's "• leading
mail-order companies and chain

dicated in CPA's report for May.

i:ip '

OPA price control is holding up
tion from higher prices,'!; \

speculative

Mr. Bowles, in support of his statement thai production and retail tales are zooming, cites Increased
output of cotton cloth, shirts, menrs suits and building materials. Lays shortages to "terrific" pent-up
demands for goods and heavy consumer spending. Says record, in face of crippling strikes and labor

in view of increasing production.

power

,|-

Director;of Economic Stabilization

need for drastic iut in piircha?-,

sees no

;i) i

•

Receipts.

Chase Bank m
-

Sohirmer, Atherton & Co.
Members New

York Stock Exchange

50 Congress
'

•

Liberty

St., 'Boston >
tZSZ

■

•

]

iVolume 163

Number 4500

Officials of Fund

Prosperity in Handcuffs
'

§§£ | ;

By-DON.- KENNETH Sy WHFftRY*

—

annually, paid into the black market.
profits so government can take over.

services^hey must have through Mr. Bowies' demagoguery .over

TJhey must get
Jit
from
the
factories
and
the farms of
America.

economic

bilge water. It is pro¬
duction", and more.production, and
more
prdouction; Failing to ;get

That

Sen. K. S.

-has repeatedly
.stated that

Wherry

has

production

Day

handcuffed

risen. This is typical Bowles prop¬

aganda. The

ended

war

nine months ago,

than

but I ask you—

Where is the butter?

•

Where

;

the automobiles?

are

Where

are

the

shirts, the shorts,

and the hosiery?

{

Where are the tires, the radios,
and the

stoves

washing machines and the
the

and

other

one

hundred

one

things

and

consumers

badly need.
-

duction

;

cannot

statistics

iound

and

ket places.
The
housewives

today

Where

can

Where

can

trie

Where

...

can

■

veteran

would leave the

raiser, 'the cattle

the traffic will bear. Jf the

in meat prices, the

tember, I miss

first of Sep¬
guess."

Now, what is the fact?

80% of the meat sold in Amer¬

today is passing through the

ica

new

doses

Mr.

worked
t h

for

take

the

lieved, in

Egyptian

inclination
SEC

•

A. Z. B. Saad

Government.

initiative, it is

The NA$D, although

along with the

controversial issues, how¬

pushes the matter, to agree to a
compromise whereby the NASD
Would send out a "warning letter'*
members

its

be¬

adoption of

action to be taken.

any

ever/intends to get the SEC, if it

stock" offering and so would have

always

that there may

any

Time is very

admitting

lieu

director general of the
administration,
moving
position to that of per¬
manent under-secretary of state
for finance. He attended the Sa¬

months

much in its favor,

prices ranging up
pound.
:

Mr.

Bowles'

•

punitive

going price.

Aero Chemical Products

page

3359)

Hoosier Air Freight

Corp.

United Utilities & Specialty Corp.

March 1946 as
Egypt's governor of- the Fund and
Bank/ While holding his present

BOUGHT—SOlD-^-QUOTED

on the Fund he is on
leave of absence from his Finance

position

Ministry position. Mr. Saad ex¬
pects from time to time ito^avafi
himself of the privilege of leav¬
visit

Prospectus on Request

Ronald

Fund duties temporarily
his country.
With the

his

ing

before

Cairo

Co.

Youii^
1NCORPORATEP

Member of National Associations of Securities

Dealers, tno,\

Exchange Place

N. Y. 5, N. Y.

offered

facilities

/travel

IIAnover

Teletype NY 1-2926

2-9290

months

many

NY 1-2323

have passed;

Cairo is only about
hours away from this country

40
on

COMPANIESJ

vannah meeting in

(Continued

the

postal

speedy;

$1.25

some

GROWTH

1944 Saad served for a few

nowadays by airlines, Mr. Saad
looks forward to a long weekend

Under

have been

and

how,

jet planes develop,

BOUGHT AND SOLD

be brought still closer.

may

Securities NOT Participating In

Bowles'

TRADING MARKETS
.

*Radio address by Sen. Wherry
over Columbia Broadcasting Sys¬

Associated Gas 6r Electric Co.

United States Government

Reorganization

tem, June 6, 1946.

Plan of Reorganization

and Municipal
Railroad, Industrial

State

Rails

Public

Convertible Obligations Series "A" and "B"

5%, 5&%, 6%, 6V2%, and 7%

Utility

Preferred .Stocks

BONDS

$5, $5.50, $6, $6.50 and $7 Dividend Series

Investment Stocks

$4, $5, $5.50, $6 and $6.50 Dividend Series

Chicago, Rock Island

Preference Stocks

"P & Pacific
Old Com. & Pfd.

Class "A" and Common

R.W.

Missouri Pacific R. R.
"Old Com. & Pfd.
v

'•

'"v'V'

v"*■•••£"<&

• ••

Pressprich&Co.

Members New York Stock Exchange

•

68 William St.

New York, New Hayen
Established 1935

& Hartford

New* York 5
Knowledge

201 De vonshire St.

Boston 10

*
,

Experience
•
jor Investors

G. A- Saxton & Co., Inc.
70 Pine Street,

New York 5, N. Y.
Teletype NY J-609

WHitehall 4-4970

Facilities

Old Com. & Pfd.
■f

Security

St* Louis & San Francisep

ADJUSTMENT

Old Com. & Pfd.

Ass'n

--rv.v'V.-'-.. ,r "

irr

J. Arthur Warner & Co.
129

COURT STREET

BROOKLYN 2,

N. Y.

;

90c

Conv.

$2,4Q

Broadway, New York 5, N. Y.

highest

-i.#

<•.

j»

»•>

request

5.
MEMBERS

?9 Devonshire Street, Boston 9
-:.A

LAfayette 3300

Teletype BS 208

SAN

Philadelphia, Boston and Hartford

NEW

VORK STOCK

EXCHANOE

FRANCISCO STOCK EXCHANGE

LOS

NEW

Co.
YORK CURB EXCHANGE

ANGELES

STOCK EXCHANGE

Members New York Stock Exchange

Direct private wires oetween New York,-

65fp above the national

New plant and expansion projects in Northern California totaled
517 in the first four mor^hs of 1946, or about
dmes the 1945 rate,

Reynolds & Co.

■

income per capita in 1945 of any

net

largest cities in the nation

Preferred

ConyiTreferrcd

Prospectus

average.

120

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

Triangle 5-5054 to 5059

San Francisco had the

of the

Telephone COrtlandt 7-9400

"•

0YERING THE COAST

^Raytheon Manufacturing Co.

Teletype NY 1-1950-2 & NY 1-2837-9

SUITE 809-812
.

Inc.

Preferred

*SoIar Aircraft Company

,Cony.

^Detroit Harvester Co. Com

INCORPORATED

Acme Aluminum Alloys,

Railroad

CORPORATION
Members of N.Y. Security Dealers

the

restrictive rule.

Born in Cairo in

blackmarkets at

The vital need of this nation is
not

V\^,

Saad

....

Mr.

from that

result isn't 40% to 50% increase

Where can I get a home?

said and I

policies the blackmarkets set the

the returning

asking—
,

the retailer each free to charge

I get all the things

I need for my home?

And

feeder,
the
hog producer,
the meat
packer, the meat wholesaler and

I get a loaf of bread?
I get a pound of

children?

Further

from

removed

"This action

America

Where cap I get clothing for my

cattle

supply

I get shirts for my

total.

this time,

done

can

husband?

quote:

meat?

has

economy

will

subsidies

asking—

are

Fund's

all

3.'49%

should not

permanent law

The NASD, which has shown an

fully, the NASD's attitude
the SEC's proposed rule
which would prohibit
all participation by partners, offi¬
cers and key employees, and their
close relatives, of underwriting
and distributing -firms in
new

thus

the

reputed to under¬

stand

con¬

stitute

X-15C2-3

general, at Hamburg in .1931,, and
consul-general! at
Liverpool in
1933.
In 1938,: with war clouds
commencing to rise in Europe,
Saad was brought home and put
Mr Bowles asserts' that if the in
charge of the Department of
present recommendations of the Passports and Nationality, a posi¬
Senate
Banking
and
Currency tion of importance from the stand¬
Committee finally become a part
point of international security.
of the law, all price ceilings and

of those commodities in the mar¬

Saad

toward

Mr.

he asks the Congress
to perpetuate upon the American
people.• -

misleading

only be found in

can

which

SEC

The

Philip¬
pines.
The
2,890 votes

of economy

charts of Chester Bowles. Produc¬
tion

tant

that to America. This is the kind

meat.

The true test of maximum pro¬

tricky

be adopted at

NASD feels. Future events
1900,Mr. Saad got
abuses along the lines seen by the will show that the ruleris unneces¬
his formal education at the Uni¬
nessing in this country housewives
SEC, feel that the problem—if sary, it believes.
with money having to stand in versity of Cairo and the University
of Paris, where he specialized in
bread lines, and meat lines.
economics and finance. He became
Mr. Bowles'
philosophy of a
consul at Genoa in 1929, consul-

shot

V-J

unable

being

buy even, a board with which to
fix a front step.
For the first time, we are wit¬

full of holes.,
Mr. Bowies

since

tired

And

torpe¬

doed.

the platter.

dis-

has

rule which would have the effect

the

of > a $2.00

white broadcloth shirt;

has

been

shirt instead

sport

character and that' a

porary

It is consequently now up to the
SEC to make the next move in

Tired of having to pay $7.50 for

produc¬

tion we should
had

of ■ paying

public is tired
$1.50 for a 60^ lunch;
The

to "insiders."

Iran,
Iraq,
Ethiopia, and

swings

fixing system

.means

faces

America

chaos.

Under
the
Bowles
price

have

production*

this

that

''X

■ -".V

The Board of Governors of the

the allotment of new stock issues

..-V,.

ernors

Egypt, Greece,

The American people, including veterans will not .get .the goods
/

National Association of Securi¬
for. the Near East on tne Fund, ties Dealers has notified the Securities & Exchange Commission that
having been elected executive di¬ it is willing to enter into a dis-^
rector at Savannah by the gov¬ cussion with jit qnvthe question pf it is a problem — is, purely tem¬

squarely in lap of SEC. The NASD feels problem-—
only temporary in character and SEC must take
initiative if any action is to be taken. NASD willing to compromise
issue by sending out a "warning letter" to its members.
now

if it is one—is

Zaki Bey Saad speaks

Ahmed

"and

radio.

The matter

A. Z.B. SAAD

i
the

Willing to Discuss Allotments Rute V/ith 15

Bank

Series)

NASD Board of Governors Notifies SEC I! Is

Executive Director of the Fund

Accuses Bowles of squeezing

■'

(Ninth of

fk0rt^£0 m face of larger cattle supply as example of producers
inability and unwillingness to sell at. established ceiling prices.
Holds cost to public of "holding the line" on meat is $2 billions

Conteodiog Mr. Bowles is "using tricky statistics and misleading
charts" and his policy is a "handcuffed economy/' Senator Wherry
lays blame oil OPA for shortages and black markets. Points to meat

World

and

Nebraska

IT. S. Senator from
V

3347

THE COMMERCIAL £ FINANCIAL CHRONICLE

Telephone: * REctor 2-8600

\ ' -* Bell Teletype NY f-635

NEW YORK

SAN

FRANCISCO

SEATTLE

SPOKANE

THE COMMERCIAL & FINANCIAL CHRONICLE

Appointed to ABA

Common

.»

New Bedford

Trust

»,

«;•'

K t'

"S- "

the ABA

which will lead to the

research

writing of

model state banking

Seventeen

states

are

con¬

banking laws,' and it is the pur¬
pose

DES MOINES

of the subcommittee to draft

suggested code which will retain
fundamental

the

Rector 2-3327

sound

and

«.

practice

INCORPORATED

have

BOSTON

Iowa Power & Light Co.
Preferred

■.

United Light &
Sioux
'.

•

the

The

City Gas & Electric Co.

Ilico.

work

the

being

done

ABA

part

program

strengthen the dual

have

current

interest

1,357,089

-—

common

the Dec. 31 bal¬

sheet

ance

tor retire¬

adjusted

ment of the convertible

fererd stock, was
is
equivalent to

prior

pre-

$7,747,029; this

$6.58 a share
(which might be increased slight¬
ly after sale of the additional
stock).
Including an estimate of
proceeds of the additional stock,
common

stock

equity

may

ap¬

proximate $9,750,000*; Oh such £
basis the capital structure would

LOUISVILLE
Southern Advance Bag & Paper

roughly 52% debt, 17%

stock

American Wringer Co. Com.

American Turf Ass'n

Girdier Corporation

ferred

Common '

American Air Filter

stock

and

31%

pre¬

common

equity.

sales

share earnings
lent growth:

con-

diversifica¬

have shown excel¬

In 1945 elec¬

amounted

revenues, ice

75%

15% and telephone

and telegraph 10%;

tric

revenues

24%

Of the elec¬
residen¬

was

tial, 9 %

rural, 19 % commercial,
38% industrial and 10% miscel¬
laneous.
The

company

owns

electric generating

hydro¬

stations with

47,700 kw capacity and

owns

leases other steam, hydro and in¬
ternal combustion units of rela¬

tively small capacity.
is

pany

other

With taxes adjusted to the 1946
basis of 38%, estimated pro forma

So. Colorado Power Com.

Merchants Distilling Co.

Descriptive Analysis

($1 par)

leads

industrial

rigation pumping.
tric

The book value of the

banking code is

broad

5,248,150

Common Stock

any

served

area

slderable

tion, plus substantial sales for ir¬

;

($50 par)

;

necessary

banking system.

Mills

$3 Preferred Stock,

per¬

—.

relatively small but the extent

of the

Bonds, due 1976~.-$16,000,000

cap¬

—

are

New First Mortgage

time

same

elasticity to

Bell Tele. DM 184

Phone 4-7159

Utica Knitting

financing;

structure should be about as<£—

stock, based

preserve and
EQUITABLE BUILDING
DES MOINES 9, IOWA

ital

follows:

banking

requirements

model state

Preferred ^ and, Common

California Electric Power
California Electric Power Company is
Currently doing some new
financing. Earlier thia year the 5%% convertible prior
preferred
stock was retired by conversion into common
stock (or by redemp¬
tion of the final balance).
The company is now refunding the $16000,000 First Mortgage 3*£s and issuing 169,636 shares of
additional
common 8tock.
Assuming SEC approval of the new

state, the report added.

Preferreds

Dwight Mfg.

at' the

and

modifications

meet

Railways Co.

principles

conservative

sufficient

mit

Pmo/ic t/rifity Securities

re¬

templating the revision of their

CALVERT ST., BALTIMORE 2
Bell Teletype BA 393
•?*■£;£

New York Telephone

committee,

continued,; is ^carrying

port

Exchanges and'other leading exchanges

•

was

by Frank

Banking Code of the Committee
v

Members New York Si Baltimore Stock

8'S.

code.

STEIN BROS. & BOYCE

;

June

the Subcommittee on Model State

Noxzema Chemical
"i"

New York, has

Company,

appointed as a member of

been

Rayon

Bankers

This

Association, it

President of the ABA.

C. Rathje,

Assistant

the

Bankers

announced

Sitgreaves,

President

Vice

Class

Jack

Emerson Drug
u

can-

Committee Post

BaywayTerminal
Davis Coal & Coke

1946

State Legislation of the Ameri¬

oil

BALTIMORE

Thursday, June 20,

The

com¬

inter-connected

with

utility and; public agencies

which provide some 57,500 kilo¬
watts of additional power

avail¬

able to the company under certain

|t|

Louisville Gas FreL

request

BOENNING & CO*

Winn & Lovett Grocery

1666 Walnut St., Philadelphia 3
Penny packer 8200

Inquiries invited

Incorporated

Pont, Homsey Co.
31

MILK

BOSTON

1 st

COrtlandt

the Federal Government.
the

26$

SALT LAKE CITY

Utah Power & Light

price.

EDWARD L. BURTON

is 600 making the yield

figure about 4.50%.
timated

160; s. main Street

Salt Lake City

Stocks

Bond s

'BELL system teletype so 464

at that

earnings for

California Electric Power serves

electricity to
southern

SALT LAKE CITY

sections

Teletype BS 373

Most

extensive

California
of Nevada
the

were

1,370 kwh.

While the company has had a
rather irregular past record

stock sold

common

position

has

been

greatly

Boston Railroad Holding Co.

and Other changes.

Utility plant

account

original

represents

Preferred

the

first

persons

devoting such

also

the depreciation reserve

served

Memos

S'ii-t 1

y'?£

Lime
vr"'

Dayton Haigney & Company
7 5: Federal

Whiti^y

Megowan-Educator Food Co.
New England

UTAH MINING

is about

22% of plant account, which ap¬
pears

satisfactory.

Street, Boston 10

Private New York Telephone
BEctor 2-5035

'Common

stocks

Standard Stoker Company

Graf I ex Inc.

Ilollingsworth &

Pump Company

Common

Established 1898

Texas Public Service

-i-

Common

BUCKLEY BROTHERS
Members New York, Philadelphia and
Los

Angeles

1420 Walnut

Stock

New York

W. H. CHILD, INC.
Members Salt Lake Stock

Exchanges

Street, Philadelphia 2
Los

Puget Sound Power & Light

Exchange

Common

BROKERS
Stock Exchange

Angeles

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

■

Southwestern Electric Service

Request

Salt

Building

Lake v*tjr, Utah &

Teletype SIJ 87

Phone 5-6172

Private Wire System between
-v
Philadelphia, New York and Los Angeles

Paine, Webber, Jackson
:

■■

ESTABLISHED

Curtis

-187#

SPARTANBURG

New England Markets
Retail

New

England Coverage

Dealer Inquiries Invited

Botany

Southern

Worsted Mills pfd. & A

Empire Steel Corp. com.

and

Sterling Motor Truck
Warner Co.

common

Industrials—Utilities

ison

Lines "C" Pfd.

So. Colorado Power Co. corh.

F. L. PUTNAM & CO.. INC.
77

So. Shore & So. Bend Ry.
Hallicrafters

Properties

Penna. Engineering Co. com.

Inactive Securities

Vinco Corp.

Secondary Distributions
Bank and Insurance Stocks

Benguet Consolidated Mines

Textile Securities

Franklin Street, Boston 10, Mass.
Tel.

Portland

LIBerty 2340

Providence

Springfield

H. M.

Byllesby & Company

A. M. LAW & COMPANY
(Established

PHILADELPHIA OFFICE

Stock Exchange Bldg. Phila. 2
Phone Rittenhouse 3717

Tele. PH 73

1892)

SPARTANBURG, S. C.
L. D. 51

Teletype SPBG 11

Gilbert J. Postley & Co.
29

cost

(estimated where not known) to

Southwestern PublicService
Reda

im¬

result of refundinga

as a

BROKERS and DEALERS

American Phenolic

few years ago) the financial

properties to public service; and

Arizona.

communities

Boston Edison

(the

low

for
TRADING MARKETS

1945

TRADING MARKETS

PHILADELPHIA

national

area

and
and

(below the

average) and average residential

Using the es¬ proved

forma

sales

(87$) the stock is selling at
about 15.2 times such earnings. K

'Nashville, Tennessee

pro

3,43$

residen-*

kwh

per

been

1945

Utah

revenues

Curb

The current dividend rate

| ESTABLISHED 1890

M. J. Whittair Assoc. 2nd Pfd.

has

the

neighborhood of that old

& COMPANY

Eastern Utilities Assoc.Coiiy.

eneral Stock & Bond Corp.

stock may be offered some¬

new

Boston Sand & Gravel

Telephone Liberty 8817

The company's average

around 13%, and presumably the

where in the

Sugar Corp.

stock

recently

little

chased about 10%.

were

common

about 46% from Boulder and pur¬

tial

selling

Amalgamated Sugar

Square, Boston 9, Mass.

/■

before taxes, and 4.05 after taxes.

9, MASS.

Nu-Enamel

In 1945

generated

half of its requirements, took

Pro forma coverage for the new
bonds in 1945 is estimated at 5.65

The

10 P. O.

earned, adjusted

was

to the pro forma basis.

Utah-Idaho Sugar

U. S.

company

over

Floor, Kentucky -Home life Bid;.

Teletype BS 424

capacity from

1942

7-1202

For the first four months of 1946

Bell Tele. LS 186

1943

1941

LOUISVILLE 2, KENTUCKY
Long Distance 238-9

20,000

Boulder Dam under contract with

N. Y. Telephone CAnal 6-8100

lotted

1944

PH 30

STREET

H ANcock 8200

conditions, and in addition is al¬

1945

Private Phone to N.Y.C.

m BANKERS BOND W

BROADWAY, NEW YORK 6, N. Y.
Direct Wire to Chicago

Volume 163

Number 4500

THE COMMERCIAL & FINANCIAL CHRONICLE

The Present Buying

Splurge Cannot Last
R. J. Reynolds Tobacco Company

lays blame for reconversion difficulties on
Administration's policy of encouraging higher wages while retaining
price controls. Says OPA has been delinquent and dictatorial and j
is largely responsible for industrial shutdowns and shortages.
Holds present control system is eliminating: many small producers,
and contracting for supplies by manufacturers is hampered by I
uncertainties.
Asserts production will increase as prices advance
but competition will prevent a lasting splurge of buying and price
Warns of exhaustion of natural

down of moral fabric due to idea "that government

-After

V-J

and of break- j

resources

rocky

let down

visions the most

Industrial" executive

advances.

guard against inflation," but

our

By R. C. HABERKERN*
Vice-President and Purchasing Agent,

Commerce Secretary visions
future for business "if

small business*

only to encourage monopoly with
prices out of the reach of the

ment

business 7-7

can

and

income.

counteract
antici-

that

pated

emer¬

gency

and

cushion

the

shock,

our

President

en¬

couraged labor
t

de¬

make

mands for

hourly rates of

big

increases

R. C. Haberkern

pay

and ordered

the cancellation of many Govera-

♦An address of Mr. Haberkern

Before the 31st Annual Convention
of

National

the

wage

"straight-plus-overtime" wag

Purchasing Agents, May 27, 1946.

difficult^ 7 ,7

(Continued

on page

■

rocky

■

down

guard

our

Gulf States Utik Bonds

Bank. Successor not yet

appointed.

WASHINGTON, D. C., June 19
White

—-The

House

announce¬

of the resignation of
Budget Director Harold O; Smith

ment today

followed

Was

Bank

bad

101.49% and

lect ion
made

together with

bank loan,

redeem

$27,300,000

the

production

nation's

price and rent controls overboard
in

now

and

attempt to

even

reap

"Inflation

Philippines Trip Is
Canceled by President

gets

The White House announced on

that President

that

Press

Truman's

visit to Manila for the

date.

The

Associated

report

damaging

nomic groups.

rising

A period of rapidly

invariably

prices

means

chaotic

speculation. In such an
atmosphere no businessman can
rationally plan bis future opera¬
tions. With prices rising rapidly,
small

businessmen—

thousands of vet¬
erans who are just getting new
enterprises under way—will come
out

many

best

second

raw

the

materials

wild

hang

and
re¬

Would you like

stand

Those who are hble to

with driblets of mer¬
being delivered, .will
find themselves suddenly receiv
ing large deliveries at just about
the time prices have reached their
peak.
on,

clear, concise, easy-to-under-

description of the, "Off Board"

"over-

the-counter" market?

chandise

"It

was

just about that

ment after the last

war

Would you like to know
why this important
market offers many attractive investment op¬

portunities?

mo¬

Our

when the

new

booklet, "Off Board,

Securities Market,'* explains

bubble

its

major phases.. . contains
analyses of 38 companies as
Well as 6 pages on unlisted
stocks, preferred
bonds, including

$$$w<

working capital, current as¬
sets,
long-term debt, net

announce

sales and net income.

build

his

while.
are

mailed

Vice-President of this Corporation

'■

own

staff.

All

before

World

Merrill Lynch, Pierce, Fenner & Beane

E. H. Rollins & Sons

The

salary of Mr, Smith's post has not
yet been announced, but it is,as¬
sumed that it is ample to make
his surrender of the $10,000 Di¬
rectorship of the Budget Bureau
salaries

of this helpful and interesting' booklet will be
request—without obligation of any kind.
777777^7777# 77i7H7777>7'7i'}-777
Address Department "7."

A copy

Harold D. Smith

op-

specific - men*
tion of a Vice-President, but the
President, operating under the
general supervision of the Ex¬
ecutive Directors, has wide pow¬

Underwriters and Distributors of Investment Securities
:

Brokers in Securities and Commodities

Incorporated
70 PINE STREET

NEW YORK 5, N.

Uptown Office: 730 fifth avenue
New York

Boston

•

Philadelphia

•

Chicago

Son Francisco

Bank

deduction

taxes.
In

quicker

greater profits."

business—and especially to small
business—as it is to other eco¬

common

the

Budget Bureau Mr.
place will be taken, for
the present, at least,.by Paul Ap¬
pleby, once with the, Agriculture
Department and an associate of

WE ARE PLEASED TO ANNOUNCE THAT

Smith's

Secretary
.

are
willing
to
prestige and the
economy
by
throwing

that

stocks and

there is

worth

,■;

until

somewhere nearly in balance with

se¬

which

crates

■

handful

statutes

iunder

continued

proba¬

the bank

ers

business

inauguration of Philippine inde¬
pendence on July 4 had been can¬
celed, as the President believed
Congress would still be in session

bank's

the

forward-looking

every

leader.; v a -7.7 77y:\77'
•'
v
"During the war years, the vast
majority of businessmen through

plans for

was

President.

I know that

June

burst, catching thousands
3V2% first mortgage and refund¬ of small businessmen
with highing bonds, series D, due 1969.
priced inventories.-The inevitable

by
Eu¬
gene
Meyer,

Commerce

Henry

BOSTON,
Hunter is

Financial

pleased to announce that

•

(formerly Captain, Army of the U.S.}

COMMISSIONER OF SECURITIES
has joined our organization as

IS AGAIN ASSOCIATED WITH THIS FIRM

MANAGER, TRADING DEPARTMENT

Chronicle)

MASS.—Douglas

now

FOR THE STATE OF COLORADO

Hunter With Chas. A. Day
to The

are

MORRIS T. SITKOFF

FOR THE PAST THREE YEARS

____

(Special

MR. ALLAN S. RICHARDSON

^Wallace.

VASCONCELLS, IlICKS & COMPANY

with Chas. A. Day

Co.,, Inc., Washington at Court
Street, members of the .Boston
Stock Exchange.

413-15

•,/.

matter of deep concern to

bust that began at just about this

time after the last war.

will be

bly

ac¬

•«

small

institu¬

This

tion.

of Gulf States

1976,

$2,000,000

used

due

2%%

the next few months.

this is

kind of boom and

same

s y n

bonds,

mortgage

The net proceeds,

as Vice-

that

series

se¬

President

first

around

for the

offering today $27,000,000 inflation.

Utilities Co. at

a n-

ment

been

lected

are

Smith

that

Inc.

charges
be

the

scramble for

underwriting

crued interest.

by the World
nounce

Henry A. Wallace

d i c ate finished
goods. Their small
headed by Halsey, Stuart & Co. serves simply won't survive
An

old

will

echoing
the country again during

jeopardize

Becomes Vice-President of World

profiteering

But- if

war.

weakened

. from
Washington
unprecedented demand we added that Mr. Truman had de-*
we can rely on history to tell us
have today. As long as business signated Secretary of the Interior
anything, we must recognize that
to weaken or destroy price and cooperates with the whole effort Krug to represent him at the into stabilize our economy, it can¬ augration.
^
]
"
rent control now would be to ask

inflation.

including

Halsey, Stuart Offers

Resigns
fli Budget Director

HHm W Mk

against

millions

H. D. Smith

are

result

profiteering

are

"Business as a whole has done
well under price control, and the
prospects for the future are bright
:if price and rent controls are

fu-

e s

3362)

net

price controls
destroyed
the

crease.

business faces

paid during the war period to en¬
able them to enjoy
a
"decent"
standard of living, already incom¬
parable to that enjoyed by work¬
men anywhere.
>.
The slump did not materialize;
Labor' accepted the Administra¬
tion's 300 cue;, industry found it
impossible to meet this fantastic
increase; and a long strike fol¬
lowed immediately in the steel,
motor, and electrical industries,
resulting in increases in wages of
around 18%0 per hour. These in¬
creased wages put increased pres¬
sure on prices, making price con¬

enterprises

The

the last

temporarily
during : the
transition period from war pro¬
duction but are again on the in-*

to believe their "take-home" pay

the

out.

squeezed

back

should

with

smaller

ceiling price of industry's
products. Labor was adroitly led

equalized

retailers'
profits were <190% higher than
during the prewar period. Both
figures are after taxes. Retail sales
right now are more than 30%
higher than they were a year ago.
Manufacturers' profits were set

in the!

But in the meantime, thou¬

sands

after

was

tinuing to rise. Wholesalers' prof¬

Industry was told it would
be possible to raise wages 30%
without necessitating an increase

of trol

Association

including

come

skin.

longer, and
through with a whole

its last year were 131% above the
1936-39
average,
and

77:

opinion

control.

controls,

even

boom and bust

not be accused

Secretary of Commerce Henry American
people, j
;;
'•(*>.
on June 19 issued the
"Right now production is at the unselfish and willing cooperation
following statement:
highest rate in the peace-time in the war effort achieved tre¬
"If we can avoid rocking the
history of the country and is con¬ mendous new prestige.
Only a
economic boat right now, Ameri¬

ties,
with
a
corresponding
drop in em¬
ployment, pro¬
duction, prices,

A. .Wallace

Day,

tion of hostili¬

their greater reserves can survive
such

the Administration, prompted by theoretical
fact finders, made a wrong guess that deflation would
follow
cessa-3>—
——•

thinkers and

was heavy indebtedness or
bankruptcy.
■>
>7'
'• f •:/
7 "The
larger
businesses
with

profitable period
in business history if "we can avoid
rocking the economic boat right
now." Says inflation will destroy

living."

owes us a

result

' /

SECURITY BUILDING

DENVER 2, COLORADO

JAMES D. CLELAND & COMPANY
.

Broadway, New York 4, N. Y.

WHitehall 3-9895

CHRONICLE

THE COMMERCIAL & FINANCIAL

Detroit

Recommendations and Literature

Chef ford Master

"•1

Pfd,

Com.

Listing—Booklet Bank Building, Grand Rapids
discussing! advantage accruing to Mich.
the corporation that * lists its se¬
:

Co.&

C. L. Schmidt
Established 1922

•

curities

1—

American Glass

•;

;

randum

•

tions,

fice,

•

Ralston Steel Car Co.—Circular
interesting situation with fa¬

Corporation—Memo¬

vorable

long-term outlook—Lerl&: .Co., .10 post Office Bquarei
Boston 9, Mass
•, •;
;
<

indicating interesting out*

ner

J.- Young

look—F.

& Co.,' Inc.,
52 Wall Street, New York 5,N.Y.

Co.—Analytical

indicating; speculative

brochure

Grinhell

•

■

•

—

well-r-President's Of¬ possibilities—Kneeland < & Cq.,
Hanimond
Instrument Co.—Curb Exchange, Board, of- Trade / Building,- Chi¬ Analysis—Caswelh & Co.,
120
cago 4, 111.
New York 6, N. Y.
South La Salle Street, " Chicago
3, 111,
y-:; American
Insulator .Corp
of
Auto Prospects in Coming Years
Delaware
Statistical study -f-Surveying, of the investment
Hydraulic Press Manufacturing
Peter Barken, 32 Broadway, New
prospects of the automobile in¬
Co.—Detailed analysis—Comstock
4
dustry—Delafield & Delafield, 14 York 4, N.Y.
& Co., 231 South La Salle Street
Wall Street, New York 5, N. Y.
Chicago 4, 111. Also a detailed
curities

Tele. CG 271

Tel. Randolph 6960

a' national exchange
investor in those- se¬

and to the

Salle Street
f ir;;:#: CHICAGO
120 South La

'■1

Co.

Advantages of

■

Also available is-the June issue
of Highlights of Wall street dis¬
cussing several interesting situa¬
.

Manufacturing

Boston 9,: Mass;

N,Y.

Descriptive
analysis—du cPont,
Homsey
Co,,
31
Milk
Street,

interested parties the following literature'.

to send

26, Mich.

Dwight

it is understood that the firms rfientioried will be pleased
;

.purolatpr Products, Inc. — Ari^
alysis
P.; Reilly & " Co., 40
Exchange Place^> New York ~ 5.1

Darling .Co.—One ,com¬

pany; in "four growth fields —
Analysis for dealers only—Moreland & Co., Penobscot Building,

Dealer-Broker Investment

Trading Markets

Thursday, June 20, 1946

dum

Field

Oil

Range I y

New York

—

Memoran¬

developments—Harry jJ
Newton, Cooper Building, Denver;
2, Colo.—In the current issue off
his
"News
Commentator" ,:aisoi i
on

—

CARTER H.C0RBREY& CO.
Association
o/ Securities Dealers

Member, National
;

American Phenolic

Wholesale Distributors
West— Pacific Coast

Middle

in brochure

Walnut Street,

are

iv; //! Jfiy: V.

LOS ANGELES 14

650 S. Spring St

Micltaan418f

analysis

Dou¬

Nelson

—

i/./

VVVu'

>,/

Reda

—

memoranda

Pump Company and Stand¬

Building,

Bank

Inc.,: Mercantile
1, Texas,

Analysis—James M. Toolan & Co..
York 5, N. Y

I "I/;;

^ -V 'v

*' 7 * * •• J T ''V. \

lative

Industry — Study of sue of the Preferred Stock Guide
position and outlook containing quotations on unlisted
—In the Fortnightly Market and public utility preferred and com¬
Business Survey—E. F. Huiton & mon stocks—G. A. Saxton & Co.,

able

Distilling

Chicago Corp.

The

The-Muter-Co.
Circular

1945—Earnings comparison—ch>
cular on request—Laird, Bissell &

HICKS & P RICE
Members

Meeds, 120 Broadway, New York 5,
N.

New York Office

& Co., Com.

Industries, Inc., Pfd.

•Camden Forge

Co., Common

Snap-On Tools Corp., Com,

•

Aspinook Corporation—Circular
—Ward & Co.,- -120 Broadway,
New York 5, N. Y.
Also
on

available

contain¬

of comment and review

Appliance Co.;. Pettib.one Mulliken
Corp.;
Armstrong
Rubber Co.;
Ohio Leather Co.; American Fur¬
niture

Co.;

Punta

Alegre

Sugar

Corp.;
Haytian
Corporation of
America;, Latrobe " Electric Steel

sound specu¬

W. L. Douglas Shoe Co.;

Also
dum

Established 1916

roff

Members Principal Stock Exchanges

Chicago Board of Trade

10 So. La SalleSt., Chicago 3
Teletype CG 405
Indianapolis, Ind.
Rockford, 111.
Cleveland, Ohio

Tel. Franklin 8622

czmssmasmmssmsssmsaammmamessssu—sasumm

y"•

•■■■'■

•'

Market

Board"

—

William

Street, New York 6,

Schenley Distillers Corporation
been running
write

Magor Car Corporation—Study
of sound railway equipment issue

N. Y."

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

Seaboard Finance
Late

Service

ADVERTISING

National' Gas & Electric

Circular "4-:-

Peck, 63 WalJ Street,
New York 5, Nf> Y.
f
;
|

concise, easy-to-understana de¬
Central PubUe Utility Corp Jscription of the "Off Board'Vor
"over-the-counter" piarkett ex¬ Analysis — Brailsford & Co., 208
plaining the major phases pf the, South La Salle Street, Chicago 4,
market and containing analyses pf 111.
thrity-eight pompanies as Well as

Sundstrand Machine TooLCpmpany-rStudy—Graham, Parsons
Co., 14 Wall Street, New, York 5,

—Late

memorandum

Corp.
stock

N; Y.

offering combination of improving
utility income, together with ex¬
cellent
speculative
possibilities
from oil developments—Fred W.
Fairman & Co;208 South La Salle

Street, Chicago 4, 111.

*&7*Z-'!£

Thermatomic

i&u,

CO«

Carbon

—Circular—Hoit, Rose & Troster,
74 Trinity Place,* New York 6,!
■

; N. Y.

;

•

■

National Terminals Corporation

Upson Co.
Descriptive Chr- v
Circular .— Adams & Co., -231
South La Salle Street; Chicago 4, cular---Seligmap, L^hekin & Co., 4
1 Broad Street, New York 4, N« V.
& Co:, 60 Beaver Street,
New 111.
Also detailed circulars on
York 4, N. Y.
,
Tennessee Products; Wellman En-,'
and net income—Address Depart¬
New .Bedford Rayon—Circular
Also available is a summary of
gineerlng Co.; Shatterproof Glassi
ment "7"—Merrill Lynch, Pierce,
on attractive situation—F. H. Kolcurrent Railroad Reorganization
Temple Coal.
Fenner & Beane, 70 Pine Street,
ler. & :Co.t - Inc., Ill Broadway,
Developments.
;
New York 5, N.Y.
v
New York 6, N. Y.

six

FINANCIAL

—*

Realization

Northern Indiana Public

unlisted

common

Cities Service Company—Study

stocks, preferred stocks and jsonds,
including working capital, current
assets, long-term debt, net sales

liiliiii!

Company

report—Kaiser & Co., Russ

Building, San Francisco 4, Calif.

Midland Utilities Company and
Midland

Merit, in care of
Corporation, v
Avenue, New York 1,>
' ■
' ' • ;
.*
Distillers

Fifth

350

in the Chronicle—t

Mark

Schenley

—send for circular CC

Adams

blear,

Standard Milling Co.

.Central Paper

'
i

V '

memoran^'

—

Ray-O-Vac Company; Fort; n. y.
Bridge Works - and Welch
Grape Juice Co.—Strkuss Bros., 32

Broadway, New York 4, N. Y.

—Brochure of articles they have;

Pitt

Paul I-LDavis &Uo.

/v"

available

Citizens Utilities.

Macfadden Publications—Circu-

Geif-

First

—

CompanyEmpire; Lanova
Shelter Manufacturing Corp. —
Current memorandum^^ and: bal¬
Corp.;
Mohawk
Rubber;
New
ance
sheet—Doyle, O'Connor & tecent report—Mercier, McDowell
Jersey Worsted; Oil Exploration;
& Dolphyn, Buhl Building, De¬
and Taylor Wharton Iron & Steel. Co; 135 South La Salle Street,
troit 26, Mich.
Chicago 3. 111.
'* f
Also a late circular on Chicago
Berkshire Fine Spinning Asso*
South/'Sli6rfe^;,Bottth^B0hd;",::
Simplex Paper Co.—Descriptive
ciates
New analysis — Scherck,
analysis discussion potential post;
Richter
Company,
Landreth
Midland Utilities Company and war benefits to the
company from
Building, St Louis 2, Mo.
! Midland! Realization Company —»
the
automobile,
building, ; and
Analysis—Ira Kaupt & Co., Ill frozen food industries—^Raymond
Canadian' Western Lumber Co. Broadway,;New York 6, N. Y.
- &
Co., 148 State Street; Boston ^,
-MHircular—Maher & Hulsebosch, r Also available, is a survey of Mass.

Co.;

^Prospectus Available on Request.

3, 111.

ago

memoranda

are

memorandum

Securities^ Company of Chicago,
134 South La Salle Street, Chic¬

lar—C. E, de Willers & Co., 120
Broadway, New York 5, N. Y.
>'

eral Tin; Hartford

ing brief analyses of Philip Carey
Manufacturing Co.; Sargent & Co.;
The Upson Company; Lawrence
Portland Cement Co.; The Parker

1 Wall St.

* Wells-Gardner

•Woodall

Geared to the News—Brochure

CHICAGO 4

Randolph 5686—CG 972

Principal Stock Exchanges

Chicago Board of Trade
231 So. LA SALLE ST.,

Stocks

Street, New York 5,

N. Y.;

Fire & Casualty Insurance

Request

Inc.. 70 Pine

New York

St. Louis Public Service "A" —4

purchase — First Colonj
Corporation, 70 Piiie Street, Neu
*
YoTk 5, N- Y. Special letter avail¬

the attractive

Broadway, r New

Company—Study

stock

common

Arkansas-Missouri Power Corp.

Company,
61
York 6, N.Y.

RoL

Brass—Study!

Edward A. Purcell

50 Broadway,

Detailed

Amott Baker Realty Bond-Price

Averagesr-Cuirent news bulletin
—Amott, Baker & Co.,-Inc., 150
Cci., Broadway; NeW York 7, N. Y.

Pierce

tions—Hauscher,

Co.,

67 Wall Street, New

Current Quotations and Topics
Memorandum on several situa¬

—

4, N. Y.

Kinney-Coasta! Oil Company-

—Memorandum in the current is¬

Utilities Corp.

of outlook

ard Stoker Company.

\ ■XC */f .C

1■

Dallas

Consolidated Gas

Revere Copper Jfc

Miller Manufacturing

Philadelphia 2, Pa.

Also available

recommendations

MARKET

CG99

Stats 6502

its future

glass & Co., 510 South' Spring
Street, Los Angeles 13, Calif,

DISTRIBUTION

135 La Salle St.

andum

past and

UNDERWRITERS

CHICAGO 3

story of its

form—with interesting investment

For

SECONDARY

Memor¬

Buckley Brothers, 1420

California —Short

containing news on ■ .certain other
mining and oil situations.
v
%

of situation and outlook—H. Hentz

pages

—

Also available is a circular op
f'
York Corrugating Company. *—4
Commodore Hotel, Inc.-^De¬ Delaware Rayon.
Trehdi—Summary of J.
Analytical study—Floyd D. Cerf
C. C. Comment—Vilas & Hickey, scriptive circular—Seligmani LuCompany,' 120 South La f Salle i
49 Wall Street, New York 5, N. y. betkin & Co./ 41 Broad Street,
New England Lime Company- Street, Chicago 3, 111.
New York 4, N. Y.
■o
!
Descriptive
circular—D a y ton
-

Plans

B rant hes

PiKpared'^Chnference Invited

-• '

In ;• A U I is

Rilroad

/Jbert Frank * Guenther Law
*

Incorporated

131 Cedar Street
;

New York 6, N. Y.

Telephone COrtlandt 7'5C60

Paper—Sum¬
mary—Ernst & Co,, 120 Broadway,
New York 5, N. Y.
....

I'oston Chicago

Philadelphia San Francisco

AbitibI Power &;

■

"."-'v"

American Forging and
Circular—De

Tornga,

Young,

Grand

Sockets&
National

Larson

Rapids

Consolidated Gas Utilities and
Thet Chicago Corp.—CircularsHicks & Price, 231 South La

The Muter Co.' •:

possibilities /•— Hoit,
Rose & Troster, 74 Trinity Place,
New York 6, N. Y.
< M
interesting

Also available is a recent mem¬
on

Panama Coca Cola—Circular on

Salle

Street, Chicago 4, 111.
orandum

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

I SINCE 1908QMHB1

Fred.W.FairmanCo.L,

*St Louis Public Service "A"

—We Maintain Active Markets In-~

Chicago Stock Exchange

Corporation Common Stock
A

discussion

For

AT-1,

REEVES-ELY LABORATORIES Conv. Preference

H-Byllesby and Company
'■

CHICAGO 4, ILLINOIS
-

Telephone Randolph 4068

Direct Private Wire to New York

- ».

Allyn Adds Snyder

CHICAGO, ILL.—A. C. Allyn
and
Company,
Inc.,
100 West
Monroe Street, have added James

Merchants Distilling
•

Memos Available Upon 'Request • ?

of this company.

System CO 537

ILL.—I.

& Co. of Chicago.

■

208 SOUTH LA SALLE ST.

Bell

S. Bruce;
with Fred}.
W. Fairman & Co., 208 South La
Salle Street, members of the Chw
cago Stock Exchange. Mr. Bruce ;|
in the past was in charge pf thei|
Kansas City office of Alexander^ «
CHICAGO,

has become associated

^Standard Milling Co.
CHICAGO SO. SHORE & SO. BEND RR, Common

National Gas & Electric

135

Incorporated *.
'
So. La Salle Street, Chicago

^Telephone State 8711
New York

v;:;> Philadelphia

Teletype CG273

Pittsburgh

Minneapolis

of Chicago
Members Chicago Stock Exchange';

134 South

La Salle

Tel. Andover 1520

Street

Tele. CG 1399

Snyder to their

staff. He was j

previously in the U. S. Army."

First Securities Company
';

(Special to TBS PlNAMfCIAL CHRONIO.8) •..
•

DEEP ROCK OIL CORP. Common

Chicago Board of Trade

Write

Lytton's (The Hub)

Members

;

Bruce With Fred Fairman f

Walter Rice Dead
Daniel
died on

•

Rice,
partner in
F. Rice & Co.. Chicago.:
June 8.
'

Walter

tYolume 163

4500,

Number

THE

COMMERCIAL ^ FINANCIAL CHRONICLE

Gurb

Exchange Drafting Reply to lr. Cornell's
Note Requesting Data on1 Kaiser-Frazer Shares

fering

without.

"an

intervening forded,: the

improvement in the financial sta^
tus- of the application
corporation
to

3351

justify qualification of its

protection

contem¬

plated by pur Legislature
they I exempted
securities

when
from

registration,

com¬

listed

which

were

mons stock"at the

higher- price.
Wfe can'readily understand arid
appreciate your viewpoint in this
regard, but this brings us to the

Riegel Textile Corp.

$4 Pfd. Stock Offered

upon certain stock exchanges, in¬
Dillon, Read & Co. Inc. today
cluding the New York Curb Ex¬
are
offering 50,000 shares of $i
change.
;
preferred stock, series A, of
Mr. Corneli a statement that a full statement on the matter would,
Riegel
^ Inasmuch as this is a matter of
Textile Corp. at $100
per share,
sami ipoiht -discussedJri brir pra-^ vital' public interest to the citizens
make ua hearing unnecessary." Issue iias arisen because Mr.
plus accrued dividends from June
viouk communication to you, re¬ of thje S>ate of
Cornell feels second offering of the Kaiser-Frazer shares at an
Ohio, we wish you 15, 1946.
ferred to above, which is that the
would give us complete details
/ /The net proceeds are to be
increased price was "unfair" and that Curb Exchange's
approach- jof a rstock; exchange to and ;the various
ap¬
action; /
steps you took plied to the
a listing
repayment of $2,000,tends to nullify blue sky laws.
application; differs soihe^ and the reasons why
\
you listed 000
of
what from the approach of a secu¬ the
90-day notes
held ; by
qorhmon shares of -the
Kaiserr Central Hanover Bank & Trust
Lawyers are preparing a reply for the New York Curb Exchange rities
.cphimissipn*: in that .while Frazer- Corporation, / when ; you
to a letter; received on Wednesday from Ernest Cornell, Chief of the the
Co., New York, and the remainder
knew such shares at the second
|)rice; to. the public is ? prob¬
will be added to
t//:\/■■•■/ ;
Ohio State Division of SeCuri- :.
\> I z -; ably | the principal factor in
working capital.
your offering price could not be regis¬
BBBBHHHM ties, requesting an explanation
calculations, when the application tered in Ohio. A full and com¬
of why the Curb Exchange de¬
comes before the

Lawyers expected 16 Ibavie * letter ready for mailing to Chief of the
/, Ohio* Division of Securities by tomorrow^ Impolrtaiice attathed to

cided to list the
the

when

the

knew

that

second

listing commit¬

common

Kaiser-Frazer

tee

Corp.

;

the

price

could not be registered in Ohio.
Edwin Posner,, President of

Curb

the

told the
''Financial Chronicle"
yester¬
day he thought the Curb Ex¬
change would be ready to for¬

Exchange,

the

ward

mails

on the

sometime

sought
through the

£hip."
,{

her

the

of
-

General

Code

NEW. YORK CURB EXCHANGE

issued

Which is

the matter follow:

statement which Mr. Posthe

matter

and

printed below,*he made

particular reference

■

June 13, 1946

Chief of Division;

tically quoting the entire sentence.

Columbus

The Ohio Division of Securities

Re:

/ Mr. Cornell's letter
after

the

from

suspended

Curb

/ ' ' \
written
,

was

Exchange

itself

had

taken

the

fact

the

stock had not been

successful

qualifying

for

;/i Thg claim being made by Mr.
Cornell is that "the listing of an
unseasoned

ings

security without earn¬

are

the

Kaiser-Frazer

shares would tend to destroy the

regulatory provisions of
sky laws."-,;- v

•

our

blue

The shares under dispute num¬

ber 1,800,000 and

January

were

at $20.25 a

offered in

share after

1,700,000 original shares had been
offered and approved in Ohio for

the

that

hesitate

not

yoti
-

t<f- if

"i / :

i-r'z
II—11—I

■HID

voted

Director.

: •:

-at the annual

Heitzman/Fahnestock & Co.; John
McLean, Shearson, Hammill &

June 17, 1946

"Blue Sky" questionnaire submit¬

ted by Kaiser-Frazer

Dear Mr. Keena:

discloses
the

Corporation

listing application

that in connection

original offering of

shares
stock

September,

States* including Ohio/

II Wish tri

with

ceipt

of your letter

1946,

Dillon

'
re¬

advising

June

13,

that the common
shares of the KaiSer-Frazer Corporatiod haVe been approved for

Wirislow,

called

for

our

Anthony

Sriiith,

requirements,

corporation* has furnished us
With! copiesof thri cbrTespondehce

;

Merrill

Circular

•

/'"/*

I ,V\

v
XJ.V v'

/r.1./"/

J."'

ADAMS & GO.
231

rioUTH

LA SALLE-STREET

CHICAGO 4, ILLINOIS'

TELETYPE CG

36t

PHONE STAT2 0101

all licensed dealers may now
buy,
sell and. trade
freely: in these: se¬
curities*

an¬

$10.

right to

Staff

Thb Financial ChUoniclk)

Hill Brothers, 319 North Fourth

Manufacturing Co.

Nutrine Candy Company

Puget Sound Power /

Street,; member of the New York

exchanged with your Division reach such a decision as you have and iSL LouiS : Stock -Exchanges.
bale at $10 a share in September, leading to the withdrawal,includ¬
With!respejct to ^the.listing of these -He-was previously jn the U. S.
1945. It is Mr. Corhell's position ing a copy of the letter which shares,, but. it would seem / to us
Navy.; :
Mr.'
jYari Heyde qf . your .Division that the listing of an' unseasoned
that
the
second
offering was
Wrote.to Messrs. Jones; fray Cpck* security without
earnings, as are
grossly unfair since the company ley & Reavis on
Charles L. Todd Opens
jarit .8, i946, the - jKpiser-Frazer shares, .would
f hadn't earned any money to j ustify Which- letter sets forth .the; rea¬ tend ' th
destroy; the regulatory
BOSTON,. MASS.—^Charles Lee
sons. why.
thei application iniyopr provisions of our Blue Sky Laws.
the price increase.
Todd,! Jr. is. resuming his invest¬
State could not be
approved, viz., Your/Exchange, by listing certaiq
{ The texts of the Curb Ex¬ the fPct
that,the: second offering Unseasoned ; securities- w; i t h ou t ment business from off ices at 53
change's first letter to Mr. Cornell, was being made at a
substantially earnings, is misleading the general State Street. Mr. Todd in the past
Mr. Cornell's letter in reply, and higher price than the
previous of¬ inyesting public who are not af¬ was a dealer in
t';v'
Boston.
r"'
"

Eric.

Kropp Forge Co,

Miller

LOUlSj MO,—George H.

Erker has been added to the staff
of

Industries/

Hydraulic Press Mfg/ Co.
.

„

Of; course, you have

Aeronca Aircraft

.L;'U'-*:

Howard

Hill Bros* Adds
ST.

,,"

li|/lh

{Special

'■
1 Y

'•c-

Request

J5n:;:

;

'•)

Members, voted to raise tlie

nual dues to

J1«}

Lynch, Pierce,
:

Preferred

Eastman,

withdrawn. As

the

Co.;

uary;1946, the stockwasqualified empt; from registration under the
Ohio Securities Act: and
in 28 States, but the
any and
application
was

Fenner' Sc Beane,

«&■;'& listing mpfom the New York Curb
/ -in | Connection with the sdcorid Exchange*!; Your decision in this
offering of 1,800,000 shares in Jan¬ matter renders these shares ex¬

in your State

Morgan;

G. H. Walker & Co.; and W. A.

acknowledge' the

1,700,000
1945, the

qualified for sale in 29

was

•

Edward

dnd Common Stotka

Craigmyle,:,Pinney Si Co.; : Alex
Hayes, Smith, Barney & Co.; A1

Columbus, Ohio

V.://:-•/•:•'/;//» V'// -v:/. '•,

meeting in

body -& C©;; George E.; Deming,

Co.;

The

Members of the Committee are:
Alfred Borneman, Kidder, Pea-

Director, N. Y. Curb Exchange
New York City, N. Y.

thereon.

Tele. CG 28

corporation/

taken

Chicago 3,11!.

NAnONALJERMINALS

;\V-^
ill

A1 nominating

Mr. Martin J. Keeha

the. action

Tel. STAte 4950

prepared

September.

135 South La Salle Street

committee Was
^elected at v the1 quarterly, -meeting
of the- Association of Customers'
Brokers, to present a slate to be
V

DEPARTMENT OF STATE,
DIVISION OF SECURITIES

calling of
hearing and the taking of action

KITCHEN & CO.

Nominating Committee

yuors,.
/MARTIN J. KEENA,

case,

made, and

■

.A':A-,.,

Very/truiy
,

previous letters, we require
each applicant for listing to fur¬

tion which it may have

RAILWAY

Guslomers Brokers
'

;

the

unnecessary

Kaiser-Frazer

with details of any appli¬
cations for "Blue Sky" qualifica¬

ST. LOUISrSAN FRANCISCO

sible moment"

:any questions regarding this

another

WESTERN RR.

been sold. *

communicate with us„
Colonel Lockwood

our

nish

DENVER & RIO GRANDE

President Of -the

and forwarded at the earliest
pos¬

since

subject of the offering

themselves,

in support of its

second offering in Ohio.

may
of ryoUr

have

& PACIFIC RY.

under the general code of Ohio.
Such a report- will' be

State,

your;

any other cases should present

of your State.

written by Martin J.
Keena, pointed out that the Ex¬
change had approved the listing
application of the Kaiser-Frazer
Corp. though it had not ignored

reniorcement"

January have

If
or

Corporation; As Wve informed

far

•-

last

for sale under the Securities Laws

Curb Exchange's note, dated June
and

inconvenience

make

hps asked me
to transmit to you his kindest
per¬

with regard to the
Kaiser-Frazer stock offering. The
13

j -

sonal regards.

which

CORNELL,

steps and the reasons why the
Exchange listed / the shares. He
States that a
ful]i and complete
Statement from the Exchange may

but ■ Was given serious considera-1
tion. We believe that our decision

qualifying

CHICAGO, ROCK ISLAND

POSNER'S STATEMENT

previously

Now

ERNEST

/Edjwiri Posner,

into difficulties in

had notified him of the action it

yours,

Chief of Division.

stock issues which had.

run

"Old" Preferred Slocks

of the General

qualifying in your State
was not ignored in our determi¬
nation to approve the application,

were

(he

the

i5, Ohio

cessful in

affect ithe

prohibit dealings by Ohio
Dear Mr. Cornell: •
/
brokers with the Curb Exchange
Our files indicate that in
June,
in either the Kaiser-Frazer shares
1945, arid again in April, 1946, we
or in all securities. However, not
since the establishment' of the corresponded with you concerning
the listing, on- this! Exchange of
Ohio securities act in 1913 has an

Exchange been
Ohio trading./

Code; of Ohio.
Very trilly

regulations In

Kaiser-Frazer Corporation

could

8624^3 and 8624-16

Exchange, Issued the fol¬
However, 'we lowing. statement regarding the

corporation.

TRADING MARKETS
*

jthat wri5 should write to you foregoing letter:
"Mri Ernest Cornell, Chief of
informing you of this action and
letting ypq, know that the fact the Ohio Division,-requests in his
that ithis stock had not been suc^- letter complete details, the various

difficulties, in

Division of Securities /
614 Ohio Dept. of StateBldg.

this por¬

may
call a

felt

Will I causes tob

Hon. Ernest Cornell,

tion of Mr. Cornell's letter, prac¬

from

you

be permitted under Sections

may

all factors in

case

from

unnecessary

;

considering

Kaiser-Frazer

said

Ernest ^Cornell

significance is believed to be
attached by the Curb Exchange >4
} 4 1 | " 1
to the concluding words in Mr. Cornell's letter in which it is pointed
but that "a full and complete statement from you, may make it un¬
necessary to call a hearing and^take such action as may be per¬ the statement issued by Mr. Pos¬

8624-16

approved .the listing application, of Curbj

Edwin Posner

ner on

statement

hearing and take such action

Our usual approach
to listing applications of this
type,
the New York Curb
Exchange has

tomorrow.

mitted under Sections 8624-3 and

plete

make

ex¬

viewpoint of

Considerable importance and

exchange the

exchange/-

After
the

information

Cornell

Mr.

stock

change is being asked to provide
a market
place for an issue which
has already beeri sold and dis¬
tributed, and " Will find- its own
level; in a free and open -market

offering

&
i'

Light Co*
i""-

'•

Superior Tool & Die Co.
Trailmobile Company
*

Detailed Analysis AvailableUpon Request

COMSTOCK & CO.
CHICAGO 4

DEEP ROCK OIL

CONTINUOUS INTEREST IN:

MIDLAND UTILITIES
'

MIDLAND

Koehung Co* ~
Nekoosa-Edwards Paper Co.
Top Brewety Co*'! ; * : /

REALIZATION

CHICAGO SOUTH SHORE & SOUTH BEND

Cons. Water Pwr. ahd
Paper
Compo Shoe Mach. Co.

^^Circtdar available

upon request.: ^'£*'/-

THE SECURITIES OF

"r.

Marlin Rockwell. Corp.
f;;.■;%v'incorporated

.*.';> s:vjr-

135 SOUTH LA SALLE STREET

CHICAGO 3, ILLINOIS

Telephone: Dearborn 6161

! /. */•;

I
.

j;' Teletype: CG 1200.

;

* '. Hamilton Mfg. Co,

r«

225 EAST MASON ST.
PHONES—Daly 5392
Chitago: State

■

Gisholt Machine

All Wisconsin Issues

Northern. Paper Mills Co.
Froedtert Grain & Malt, Co,

Co..
t -

James

Manufacturing Co*

10lley, dayton & gern01
Member—Chicago Stock Exchange
105 So.

Memqers Chicago Stock Exchange

;//!/ /;

Macfadden Publications

Dearborn lSOl

.Teletype CG 95S

Weyenberg Shoe Mfg. Co.

National Tool Co.

DOYLE, O'CONNOR & CO.
.

So. La Salle St.

231

MILWAUKEE
0933

La Salle St., Chicago S, 111.

CG 262

Teletype MI 488

Central 0780
Offices in Wisconsin

(2)

Eau Claire

Pond du Lac

Madison

-•

La Crosse

Wausau

t '*5/VT

mmwm.

•

THE COMMERCIAL & FINANCIAL

3352

'!,5

':'

Thursday, June 20, 1946

CHRONICLE

application of
list 853,850
$1 par; value common
approved by the board
the

while

change

itffi

•,\\ I

Davidson Bros., Inc., to

shares
stock

was

plans for the sale of $12,000,- of
governors. Trading in the lat¬
000 of convertible preferred stock to finance expansion and modern¬
ter
issue is
expected to start
ization of its Muskegon plant and to provide funds for possible sometime around July 1. The firn^
acquisition of additional manufacturing facilities and working cap¬ operates 12 stores in the Detroit
ital needs, C. J. Reese, President, has announced.
area.
Continental Motors Corp. is laying

...w-

♦

Kaiser

Fraser

will

soon

ance

-oh

stock •>

common

be making its appearthe N. Y.1 Curb ticker

•»

licly; and the balance by Kaiser
and Graham Paige interests.

tape. The firm's 4,000,000 shares
of $1 par value have already been

Detroit Aluminum and Brass

admis¬

Corporation has filed a registra¬
tion statement with the
SEC

for listing and

approved

outstand¬
3,500,000 are now held pubof the total shares

sion

ing

covering 181,440 shares of

$1.25

value common stock. Baker,
Simonds & Company will head
the underwriters.
The shares
will be sold for the account of
par

Call Us On Any

$10 per share.

certain holders at

MICHIGAN

Y"'l

:</<*• i

i ■

*
f. 7 jf v*.*"s .V

lv..

->.y

' >

v'!"'. '♦

■*'.

trading on the -Detroit
Stock Exchange reached 401,191 shares, having a value of
May

$5,445,656. This brings the five
months total

far this year to

2,758,524 shares
as
compared *
with 2,125,194, in the like 1945

At the same time the
reported a sale of a
stock exchange seat for $4,500,

period.

exchange

ill

$1,000 over the previous sale
February and the highest
♦

Assistant Cashier
of Detroit
has left for Rutgers University,
New Brunswick, N. J; to enter the

chased" $30,000 Ecorse Township
School District No. 8 1^4% Bonds.

Graduate School of Banking con¬

The issue matures March

ducted by the ABA.

Members New York

Ford

BUILDING

812 BUHL

back around 65,000
workers this week. It is estimated
that iinal assembly. lines will not
be itifull operation imtil June}24.
The Lincoln plant, still beset by

DETROIT 26, MICH.

^Phoi£««

Teletype

Cherry 6700

DE 167

•

Established 1919

Mepibers Detroit Stock

■

?:y; ■. •:%

' <•

Co.

pur¬

1, 1947-

gigantic task, may we suggest that all
photographs of themselves send one directly to

In order to expedite our

with their

name

(25vPark Place, New York 8, New York), together
and firm connection on the back of the photograph

they have not already done so. The size of the photograph does not
have to be considered but we ijare asking your cooperation in this
initial work.

time, over $9,000 in advertising is in hand and we
pleased to recognize our old friend Phil Clark of Denver who
developed over three times the number of ads we have ever

At the present
*

are:

City Ice & Fuel- Corn-

Detroit

unit of City Ice-8c Fuel
Co., announced the filing bf a
registration statement: with the
SEC covering an issue of $12,000,-

has

had out of his affiliate.

pany, a

May
us

ask all the- officers of the affiliates to cooperate with,

in getting these photographs ih

can

and in lending what assistance they

photographers are in their cities, also aiding their re¬

when the

yet unable

fund

sinking

23A%

000

due June 1,

bentures,

Exchange

Michigan Markets
*:

639 Penhbscot

Jj"J

Building:

? Telephone

with its or¬

compared

shares.

Watling G. Lerchen of the
investment house, Wat-

Teletype

local

DE 206

Randolph 5625

iginal holdings of 82,000

DETROIT 26, MICH.

Co., which
that the
firm is getting out of the bank¬
ing {business same as GM did.

ling,

Lerchen

hahdled ithe sale, said
.

On the heels of the Ford

Electromaster, Inc.

f Prpspectus fttfnished

Bank

have

Sale,

Manufacturers
a
meeting of

the

directors

re<linest

called

shareholders for. June 17 to vote

Shelter

on a

sale

Mercier, McDowell
Members

Detroit

Co.,Inc„andC#CkMcDonald| the photographers, were in Philadelphia in lining up the members be-?
fore the camera^—Harold Smith

'•

■/;"

Andrew C. Reid, past President
of j the: Dettbit Stock ^Exchange,
has annuonced the*" formation of
his own firm, Andrew C. Reid
& Co. with bffices in the Penobf

Other' partners in the
firm are Roy* W. Neil, Elmer C.
Schroeder and Fred W. Huber. All
have been in the securities busi¬
ness here for the last 20 years and
are W611 known in financial .cir¬

Eugene W. Lewis, President of
the Industrial National Bank, has

Tele. DE 507

held.

the

announced
former

♦

Michigan Markets

American Forging

bank

purchase

building

Co., Inc., have called a
special meeting for July 16 to
vote oil a proposal to boost cap¬

& Socket Co.

ital

100,000

from

stock to
300,000
$10 par stock.
The
for issuance of two

shares of
plan

DEPENDABLE

shares of no

value

par

ACCURATE

new

calls

shares for each share pre¬

sently outstanding,

Request

Inquiries Invited

white, noble & co.

DeYoung, Larson & Tornga

i Members Detroit

GRAND RAPIDS, MICH.

11
Phone 98261

GR 84

Stock Exchange

GRAND RAPIDS 2

••

Phone 94336

Teletype GR 184

One Company in Four Growth Fields

);

{

Display: Fixtures

PrecbionCastings

Plastics-

Grey Iron Castings

I<'

MICH. TRUST BLDa

L. A. DARLING CO.

National

Gypsum Co.

Common Slock Offered
Underwriting
syndicate
headed by W. E. Hutton & Co. and
Blyth & Co., Inc., are offering to¬
An

day 275,000 shares of common
stock, $1 par value, of National
Gypsum Co. at $29.50 per share.
The net proceeds are to be used
to pay additional costs of two new
plants at Baltimore,
Md., and
Kimballton, Va.; to pay for addi¬
tions to its rock wool plants and
for additions and improvements

plants* at Mobile, Ala,; Clarence
Center, N. Y,; Kalamazoo, Mich.;
Garwood, N. J., and New York

Analysis For Dealers Only On Request

Officers of, the First Boston Corp. ^re making arrangements to
take^a,( poll, of r the stockholders of theK corporationj,iiot latent thaa
Ju)y 31bn the question of ab-^
111.
■ .'y ,'r l ',u 1
sorbing the interests of the Mel-^ value of the assets of the respeo-

the

committee

First

With Barret, Fitch & Co,

■

1051 PENOBSCOT BUILDING

City

—-

Lansing

—

The Financial

KANSAS

J
: '

DETROIT 26
Bay

(Special to

MEMBER DETROIT STOCK EXCHANGE

Muskegon

Clark

with

CITY,

has

Barret,

Chronicle)

become

Fitch

affiliated

Company,

Inc., 1004 Baltimore Avenue.
was

previously in the U. S. Army.

The net assets of the Mellon

000.

believed

Securities Corp. are also

paring
a
presentation of the
proposition for consideration by
the board of directors when it
meets again, very likely sometime
within the next month,
s The
ballots to be sent. to / the
holders of the corporation's 450,000 shares will be worded in such
a way,
it is. understood,. that, J if
consent is given to go ahead with
the J proposition,
the
proposed

possible that the First Bos--'
ton Corp. may issue as much as
150,000 new shares of its own to
exchange with the Mellon Securi- >
ties Corp. for its securities. It is:
likely also that the new issues
would be non-voting stocks, thus
assuring the present management
of the First Boston Corp. of con¬

approximate $8,000,000.

It is

tinuity} in the new organization.
The New York office .of the
i;i effective Mellon Securities Corp., which is

merger
will
become
without delay under certain very

definitely stipulated terms.
Since the stock of the Mellon
Securities Corp. is owned princi¬

staffed JbyJonly
will

most

•

Mellon and

pally by Richard T,

Sarah Scaife, both
residents of Pittsburgh, assent to
the proposition from that corpo¬

his sister, Mrs.

considered a certainty
even before formal action by the
board of directors and vote ef the
is

ration

stockholders,

though,

board

favorable

action

course,

and vote

by the stockholders must ma¬
terialize before the merger can be
new

merged firm—if it is

authorized—will exist under the
name of the First Boston Corp., it
has

MO.—Wesley

Boston

Corp., under the chairmanship of
H. M. Addinsell, is reported pre¬

The

Moreland& Co.
;•'«

pro¬

Fate of proposal
likely to be decided by stockbolders by July 31. - Negotiators have
not yet come to an; agreement on valuation of assets of two firms.
New merged firm would exist under name of First Boston Corp.
and wonld be largest corporation of its kind in world.

completed.
i -■

presentation of

Executive Committee is reported preparing a

position for consideration by Board of Directors,

of a
in the lon
Securities
Corp.,
another tive firms. On the basis of the
northwestern section of Detroit to underwriting and securities dis¬ 1945 annual report of the First
National
Stamping
Company
open another branch office.
tributing ^concern, into the firm, Boston Corp., however, the 450^stock has been admitted to trad¬
000 shares of the corporation, at
'fYlY"
*
*
4
it has been learned.
ing on the Detroit Stock ExAt the moment, the executive $32.20 a share, are worth $14,490^Directors of Universal Prod¬

Stock Exchange

Preparing to Poll Stockholders
Merger of Mellon Securities Into Firm

Y:::

ucts

'Circular

First Boston

scot Bldg.

shareholder
Will .receive rights, for the subSckdption of one new share for
jiff approved, each

♦

shares of $50 par cles.

•

j', Buhl Bids'., Detroit 26
Cadillac 5752

of 20,000

each four shares now

& Dolphyn
;

the issue and

& Co..

stock at $150 a share.

Beport furnished on request

■

{proposal to increase the cap¬

ital of the bank by

Manufacturing Corp.
if

re¬

de¬ gional chairmen with advertising. It would be a big help if ah official
1966 - and in each affiliate, were to call each member and urge him to send in a
to open.
*
114,827 additional shares of com¬ photograph if he.has not already done so.* At this writing, it looks
as
though. the deadline for pictures will be August 1st and for
mon stock.
V
r
•
'
V ^
*
*
*
advertising approximately the 5th of August.
In a move to gradually curtail
all its activities except the manu¬
Jr." ;'
:
Harold B. Smith, Chairman
,
Decker Manufacturing Co., of
■ii /•
V
^ NSTA Advertising Committee
h i
facture
of
automobiles,
Ford Albion, has filed an application
Collin, Norton & Co., New York, N. V.
J
Motor Company sold an additional
with the: Michigan Corporation
;J:J,
A. W. Tryder, Yice-Chairman
g \\ J ... J'
25,000 shares of its stock in De¬
and Securities Commission to
J'-l,
NSTA Advertising Committee
troit's
Manufacturers
National
validate for public sale 112,670
W. H. Newbold's Son & Co., Philadelphia
Bank at $200 a share. This leaves
shares of $1 par value common
the company holding some 9,000
stock.
Underwriters are Lytle, J:
P. S.—A1 Trydeiv your Vice-Chairman, was most helpful while
supplier difficulties, is

Charles A. Parcells & Co,

; ;j•

plants, down since May 8,

calling

are

-1

Stock Exchange

• •

McDonald-Moore

wishes to thank the

tended.

1951.

Alex J. Innes,

for the National Bank

Wm.C.Roney&Co.

Your National Advertising Committee

gional chairmen for their splendid, cooperation and assistance giveii
the Financial Chronicle salesmen. Also, we are happy to give credit
to George McCleary of the Florida affiliate for urging all members
at their Convention the latter part of last month to send in their
photographs and to Tony Bottari of the San Francisco Traders As¬
sociation, whose affiliate, by the way, has practically 100% of their
photographs in the hands of the "Chronicle," for the cooperation ex¬

the "Chronicle"

' ♦

•••

•

NSTA ADVERTISING YEARBOOK NEWS

members who have

price paid for a seat since 1937.

UNLISTEDS

NSTA Notes

been

Mellon

announced,

though the

family will retain

sub¬

in ,the company
which will be the largest corpo¬
ration of its kind in the world.
stantial

interest

Negotiators
come

anv

as yet
agreement as to the

have

not

{twenty^

likely be absbrbed by

New York office of the
First Boston Corp. if the merger

the larger
takes

office

place. The Pittsburgh main
of the Mellon Securities

Corp. would continue to be main¬
tained, however, as it would give
the firm desired coverage in west¬
ern

Pennsylvania and West Vir¬

ginia. The Pittsburgh office
buying

would,

department

have

both

and

selling organization.

The
formed

First
14

Boston

years

ago

Corp.

was

out¬

growth of national banking legis¬
lation. Previously, it had been the
securities
affiliate of the First
National Bank, Boston. The Mel¬
lon Securities Corp. was formed
in 1935 mainly to handle the Mel¬

interests, it was under¬

lon family

stood then.

important

Mellon
became an

However, the

Securities, Corp. soon

underwriter.

iVolume 163

Number 4500

THE COMMERCIAL & FINANCIAL CHRONICLE

Connecticut Brevities
V

3353

railroads announced that they will
begin operation, : on July 7, next,

Missouri Brevities

On June

11, the City of Meriden sold $100,000 Street Improve¬
:
A public offering was made on June 13 of 11,531 shares of no
1, 1940 and maturing $10,000 each year June par value common stock of Union Wire Rope
Corp. of Kansas City,
1, 1947 to 1956 inclusive, to Laidlaw & Co. at 100.03777 for bonds Mo., at $15.50
per share.
These represented the remainder of an
carrying a %% coupon rate. Other bids were submitted for a 1% original issue of
42,000 shares initially offered to stockholders at
coupon rate, a The bonds were reoffered to the public at : prices the same
price. The principal underwriter is P. W. Brooks & Co., Inc.
ranging from a .40% to .75% basis.
of New York
City.
Burke & MacDonald, of Kansas City, Mo.,
The First Boston
Corporation^registered dealer under the Mis-^
recently purchased $800,000 Town
For the month of May, United souri Securities Act, participated
Industries, Inc. are now ready for
Westport School bonds.
The Illuminating reported sales of 52,14 in the
offering. The Union Wire delivery: in exchange tor all pre¬
Issue carried, a i% coupon and 139,287 k.w.hi compared to
57,213,- company intends to use a part of sently
outstanding
certificates
matured
$40,000 annually from 715 k.w.h. in May 1945. Sales in t h e
proceeds
(approximately representing stock of said com¬
I one to twenty: years.
Reoffering the New Haven area increased $250,000) fori increased inventory pany.
'pi :
;• "
prices ranged from a .40% to a 6.1% while -sales in the Bridge¬ to be
placed in warehouses and in
The "directors of the Kansas
1% basis.
port district declined 16.5 %.
stocks consigned to distributors,
feCity Southern Ry. on June 14
*
so
that, to as large extent as pos¬
declared a dividend of $1 per
;
On, June 12, it was announced sible, wire rope will immediately
Putnam
&
Co.
of
Hartford
share on the $4 preferred stock,
be available for sale.
The balance
headed a group of underwriters by the SEC that Derby Gas &
payable July 15 to holders of
Electric Corp., together with three of the proceeds will be used to
who recently offered
record June 29.
A similar pay¬
49,500 shares
of the Plastic Wire & Cable Cor¬ of its subsidiaries, Derby Gas & increase the cash working capital
ment was made on Jan. 15 and
Electric Co., Danbury & Bethel of the corporation.
poration at $6 a share.
April 15 of this year,
|
Gas &
Electric Light Co.,
and
Current assets as of Dec. 31, ■.
Tht^company, located in Jewett
Walliiigford Gas Light Co., had
1945, amounted to
City, Connecticut, was incor¬
$1,693,567,
filed a petition to gTant permis¬
The Elder Manufacturing Co.
while current liabilities totaled
porated in October 1943 under
sion to issue additional securities,
the laws of the State of Con¬
reports a net income of $249,593.
$819,602. Net Income of Union
Proceeds from such sale would be
after reserve for contingencies of
necticut. The company is en¬
Wire Rope Corp. for the year
used to finance cost of additional
gaged In the manufacture and
$75,000, for the fiscal year ended
; 1945 Was $476,434 after Federal
facilities for subsidiaries.
Bale
of
April 30, 1946.
taxes,
which
This was also
plastic-covered
wire
compares
with
The parent company plans to
after Federal taxes amounting to
:
and cable, plastic-insulated elec¬
$354,529 for 1944 and $267,489
issue $500,000 debentures and
trical cords, including molded
for 1943. In each of the three
$561,274, which included excess
20,066 additional common shares;
Plugs and parts, and in thes
profits taxes of $367,754. In the
years, dividends totaling $104,
the former to be sold to an in¬
preceding year, the net income
development and manufacture
000, or $1 per share, were paid.
stitutional investor, and the Iat-\
amounted to $211,656, after con¬
V of other products featuring CXr
ter offered to the company's
traded plastic composition or
tingency reserves of $100,000*
ment bonds dated June

complete train daily between

the

Eastern seaboard

Texas,

pointed
vocated

Ohio

has

out,

and

the

long

ad¬

Young,

Ry., and in advertisements

sponsored by. the C;! ^

lines^c^

Mr. Young asserted that, "St.

■

been

Chesapeake x&

points

which, it

|i by; Robert

Chairman

service

Louis,
i

the

natural

gateway

to x

the Southwest, gains in impor-;

tance and prestige by this move,

and

service
Coast

hoped

from

the

that

non-stop
West

East

be promptly provided

can

through St. Louis."

Primary Markets

Bank

Insurance Stocks

p •!* \'"r ir
1 "j
ynfc'' i-: K:--.u,

'•••

*Stromberg-Carlson Co.
^Mid-Continent Airlines

stockholders.

covering.

underwriting

Lionel

group on June

Kalish,

Jr.,

has

"Ampco Metal, Inc.

Elder

been

the

Wilcox-Gay Corp.

•

elected

14 offered

♦

$667,400 of Great Bend,
Prom the. beginning of .operaSegal Lock" & Hardware Co. is Kansas, school bonds, carrying
in December 1943 until
: August
1945, the corporation was offering its holders of common 1%", lVz% and 1%% rates and due
from one to 20 years, at prices to
engaged exclusively in the manu¬ stock, 7% preferred, and $2.50
facture o| insulated wire for mili- preferred? the right to subscribe at ytel&froniafc^
tary purposes. V-J Day in August $4fa> share; to one share of coni- underwriters^ composed := of | Stern
Brothers«& <^.,^ Baunt-Bernheintbrought cancellation of war con¬ mdn stock for each Two shares of
er
Co., Soden-Zahner Co. arid
tracts totalling some
$2,500,000. In any class: of: stock held. Offer Is
September 1945, the company con¬ made: to: holders of record Junje Lucas,. Farrell & Satterlee. aU Of
verted to peacetime activities and 13; rights will expirei July: 2.
| Kansas City, - Mo., !and Seltsam &
Company, Inc. of Topeka, Kansas,
sales aggregated $33,391; in Octo¬
paid par for the bonds.
ber, $98,513; November, $110,019; Kenneth Gosman Joins
December, $143,785; January, 1946;
$179,750;
;
February,
$128,837; Wahkri WWte & Co,
The Laclede Steel Co. has de¬
(Special to ?Tb* Financial Chronicle)
;
March $194,720; and April, $209,clared a dividend of 25 cents per
KANSAS CITY, MO.—Kenneth
^75, bringing the & total for the
share, payable^ June 29 to stock¬
eight months to $1,098,490. As of
Gosman has become associated holders v of record June
22, the
the end of April 1946, unfilled
with Wahler, White & Company, same rate as in the previous quar¬
orders amounted to approximately
ter. Knapp-Monarch Co. will pay
Dwight Building. Mr. Gosman has
$1,320,000.
40 cents, per share on the com¬
For the first six months of the recently been with the Recon¬ mon stock July 1 to holders of
Finance
fiscal year ended March 31, 1946, struction
Corporation. record June 21, the same as dis*
net profit was $10,004.
For the Prior thereto he was with Harris, bursed on : Jan. 29, last. Clinton
year ended Sept. 30,
1945 net Upham & Co. and
Auerbadh, Pol- Industries, Inc. (formerly Nation¬
al Candy Co.) will pay 25 cents
profit was $68,707, compared with
lak & Richardson.
on
$24,315 for the preceding fiscal
July 1 to stockholders of

lotions
•

company to succeed the late Ben
Si Pearson.
Alfred F. Rowan, a

director

was also > elected
and Arthur, * C. - Schick:

Assistant V Treasurer;

„

elected

Majestic Radio & Television l
Corp.
'

Vice-President,
Treasurer

^Pickering Lumber Corp.

1 was

;

•"

also

•

Bonus Products Co.

Secretary .both:: succeeding

r:"'

V:v |

(Units)

Mr;

Statistical

retary and Treasurer.

Information
s

vv
.

...

The usual quarterly dividends
of 25 cents per share on the
;

common
stock * and $1.25
per
share. on the;? 5% cumulative f
; participating class A stock were ?

The

♦

Southern

With Stern Bros, Co.

V.!.

New

England

^ Telephone

Company of New
Haven has registered with the

S. E. C.,100,000 shares

have

of, $100

value capital
400,000
warrants.

shares and
Holders of;
record Of June 25 of the capital
stock, are to be given the right

par
•

>
<

::
,

;
*

;

to subscribe to the new stock at

$120 a'share

the basis of one;

share for each four shares

new

held.

Subscription

rights

| expire on July. 16,' 1946.'

share,

after

charges
with

compares

$1.18 a share for
of last year.

U)::>l;>7:00031

Jack

and

Davis

been

Louis Stock Exchange

E.J

added to

Avenue,

Chicago

the

ant under

the:/£urrent':;^trusteeship

the

Missouri

Pacific

RR.

the

' v

Co.,

and

taxes.
$237,843 or

that road, to succeed

Common

»t,

New

the

Metropolitan St. Louis

Analys is of

COMPANY
710 Lecust Street

Both

Saint
'*

armed

Berkshire Fine

Louis

Spinning

Mo,

Central 8250.

L. D. 208

St. L. 499

Associates

Associate Members New Tork Curb

Exchange
1

:
*

.'V»'

Sb. Louis

•

,•-~

Copy

Primary Markets in

on request

Hartford and
Connecticut Securities

bringing the

S€HEHCK, FICHTEF COMPANY

Hartford 7-3191
New York:

BOwling Green 9-22,11
Bell

Landreth
Bell Teletype

'•

Co.

Members New York Stock Exchange

New Haven 6-0171,

Mosinee

'•*/'

'yi

LAHDRETH

ST. LOUIS 2, M0.

ld.240

Pickering Lhmber Corpi
•

Stix: & Co.

Western XL & Tel. Co.

Marshall U. S. Auto Supply

INVESTMENT SECURITIES
509 OUVE

Baums - Birihbihir €©.

STREET

1016 Baltimore Avenue, Kansas City 6, Mo.

Bell

Teletype

—

KC 472-3

Private

Phone—Harrison 6432

St.LouisI.Mo.

v:;:

New York Canal 6-3662

Teletype NH 194

Paper Mills

Lucky Tiger Gold Mining

■v:..:?

2-4301

5-2410

Co.

BUILDING

1)1

GABFmv 0225

MoV

Peltason Jenenbaum
5

Teletype—SL 4$6

Long-Bell Lumber Co,

Primary Markets—Statistical Information

Louis 2,

TRADING MARKETS:

Connecticut Securities

CHAS.W. Scranton

St.

Building

SL 456

System Teletype: HF 365

Fifty-fifth Year of Dealing in

London

Scranton Elec. Co.

Exchanges

total to $2,401,590.

Hartford

interested in

are

the late

0/ pi

Tim: Brothers

the similar period

surplus was $137,843,

New

member of the board of directors

forceS.!.;!

Teletype—SL 477

has been elected President and a

staff of

Exchange.

previously

were

responding period last year/Earned

ST. LOUIS I, MO.
Bell System

Kefhpton

members, of

Stock

Mississippi Valley Trust Bldf.

♦

Waterbury 3-3166
-

Danbury 5600

Strauss Bros.
New York and

Chicago

;
;

Wire

White
,

; ;

Connections
&

Company

St. Louis

To:
.

Pledger & Company
Los Angeles \.

(
.

While & Company
Members St<

Neff, executive assist¬

Stern Brothers & Co., 1009 Baltir

During this period, earned surf
rplus increased by $202,580 to a
si total of $2,683,374. For the cor¬

will

For the 20 weeks period ended
May 19, Veeder-Root, Inc. showed
net earnings of $302,580 or $1.51 a
This

Paul

v \

oh April

Members New Tork and Boston Stock

;

declared, both payable July 1 tor
holders of record June 20.

record June

*■ 1
.

Lewis Warrington Baldwin who
15, the same as paid
died in St. Louis, Mo., on May 14.
1, last. New definitive
On June 14, the MOP and the
(Special to- The Financial chaonicls)
t
engraved stock certificates rep¬
KANSAS CITY,MO,^-Raymond resenting capital stock of Clinton Pennsylvania and Texas &'Pacific:

I year.

;;r: ■"

:v• V
Request
.

Pearson, who had been Sec¬

10000000/-

Members St. Louis Stock Exchange

THE COMMERCIAL & FINANCIAL

V 3354

Thursday, June 20, 1946

CHRONICLE.

sfeady rise and somewhere along
the line it should level off.

Unfortunately, not many people
realize that the cost of operation
of real estate is continually rising

Real Estate Securities

without much prospect of relief
from QPA rent ceilings.
the different schools of thought of what
Another, situation, that ;shp\iid
properly constitutes a fair reorganization.
■
1
be considered is the probable cost
In the 61 Broadway reorganization in the Federal
Courts, where
of modernization to compete with
the equity, owners were.cut off • entirely and where the
Juniors bond^
new buildings, such as air condi¬
holderslwere almost entirely ;Wiped/^
.":
Commission advanced the theory that the doctrine of a fairness of a tioning, etc.
plan requires that the holders of^
senior securities be fully compen¬ reorganization
and
unless : the
sated before junior security debtor's assets exceed the amount Gibson, Morse, Hannah
holders may participate in the of its liabilities, stockholders must Named to Labor Posts
It is

interesting to

excluded from

plan. Simi¬

larly* junior

ra or

holders

not participate

may
less there is

claim

the

un¬

equity above • the

first

mortgage

* *

ject to the first mortgage.

but

*
.

off

SECURITIES

SOLD

QUOTED

and

security
the

holder was

owners

were

cut
per¬

mitted to retain their interest in
the equity. This property has: a
first mortgage leasehold bond is¬
sue of
$6,059,500,*v second mort¬
gage- bonds
of $2,962,500, - and
third leasehold bonds of $2,5Q0,000.* A-i a. total indebtedness of
$H,522,000s, while the- value set
for the property by the Court's
appraiser in the reorganization
was only $7*100,000* The. theory
advanced for hot disturbing the
present debt structure was that,
providing there, is ft prospect of
earnings ; over and above that
necessary;: foj^jthe fullest. protec¬
tion of senior interests, thus in¬
suring their absolute priority, it
,

SHASKAN & CO.
Members New York Stock Exchange

should
then • become fair l ami
equitable to identify reorganize*
tion valuation with a debt struc¬

^;; Members New York Curb Exchange

PL,NX

Dlgby 4^950

I-9S3

that

ture

rather

John

Gibson

Ohio.

earnings

than

can

use

market'

Snecuiatdrsin

hotel

bonds

Members New York Security Dealers Assn.

thoroughly.

very

Dnly direct representative of the

are

asking for

hours

working
to

seven

forty

the

Should

cal

and

Dr. Alvin Johnson

Faculty of Politi¬

Social

New School.

of the

Science

■-i

•

Conceding that for the immediate future, the outlook is dark, the
(Continued on page 3373)
i

CHICAGO, ILL.
has

Jenkinson

—

LOS

Robert W
associated

become

ard N. MacKellar jhas

adminis¬

Department

Co.,

618 South

Spring Street.
;

■

tration.

He has been SecretaryTreasurer of the Ohio State Fed¬

ILL.

CHICAGO,

No announcement has yet been

nade of the selection of

Under-

Saxtoh and John
are

S. Weatherston

with Graham, Parsons &

now

South

Co.,

135

Mr.

Saxton

Salle

has

Street.

recently

LOS

James

—

ANGELES, CALIF.—Louis

connected

California

First

650 South Spring

Company,

Street.

-f's

been
(Special

to the Financial

to The

chronrmt)

(Special

cludes establishment of three as¬

Chronicle)

Aragon has become

with

y
::

(Special to The Financial

(SpeCla.1 to The Financial Chronicle")

eration of Labor.

th4

joined

staff of Edgerton, Wykoff &

Salle Street.

Labor

chroniclk) [u
ANGELES, CALIF.—Howr

(Special to TKf Financial

Chronicle)

the

Chronicle)

serving In the U. S. Army. Mr.
;
MIAMI, FLA.—James C. CulVfr
Weatherston was with Blyth &
is with Daniel F. Rice and Com¬
Co., Inc.
1
pany, Ingraham Building.
/;

secretaryships
present.

instead

(Special to The Financial

After

unanimous

approval

Chronicle)

;

OHIO—John

CLEVELAND,

Snyder Confirmed

Union

forty-

from
hour
be

week.

successful

affect the earnings of many, hotels
in New

York.
matter of fact, this writer

WitfcThe First ClcveiCorporation, National City

lahd

in Hie

son,

extend

contracts

the

ma¬

as.

Treasury post Fred M» Vin¬

who

has

been

nominated

jority of real estate bond issues.

Chief Justice of the United States

This type of investment has had

Supreme Court.

California & New York

and

Cawcutt

brtcht

Bank Building.

DETROIT,

Cannon

Donald-Moore

affiliated with JHe>
&

*:,

Building.

■<

MICH.—Horatio

now

^7 v;

•

" •;

VollT

'
;v "4

Chronicle)

to The jpinancial

OAKLAND, CALIF.—James N.
White is

Penobscot

Co.,
■

(Special
'

Irene

Co., Baker Arcade.

(Special to The Financial Chronicle)

with John G. Klnnard

are

;

Secretary

Financial

MINNEAPOLIS, MINN.—Geo,

Bura is pow

of the
Treasury was confirmed by the
Senate the following day by voice
vote withqut. objection, according
to Washington' advices from the
Associated Press. Mr. Snyder, \yhc
has lately been Director of the Ofr
fice of War Mobilization, succeeds
Snyder

believes it would be prudent not

Trading Markets:

the Graduate

with Detmer & Co., 105 South La

30%

their demands it will seriously

Firm

E.- Hamburger

Dr.

June 10, the appointment of Johr

■■,»;)

appear

American Federation of Labor in

the Senate Finance Committee op

Teletype NY f-1203

will

the June issue of
Social Research, quarterly pub¬
lication of the Institute and of

Labor*

article

The

week

the

increase in wages plus a reduction

L J. GOLDWATER & CO.

Institute

the

Hamburger, research associate.

(Special to The financial

Mr. Hannah is described

HAnover 2-8970

President

World Affairs, and Dr. Ernest

work in European areas.

sistant

the Unions

Broadway

Mr. Morse is stated to
havejbeep
practicing law invNewark*and h^r
ieen general counsel of the Na¬
tional Labor Relations Board, and
served during part of the war as
a Lieutenant Colonel in the Army
in charge of Military Government

contracts expire very shortly and

3/46

New York 6, N.

Economic.Problem of Germany" by Dr. Alvin Johnsoh,

;
;

two as at

ments

51 East 42nd St. 3/56

contained

Labor Department last July, and
has been serving as First Assistant

might do well to check into the

500 Fifth Ave. 4-6j/2/49

The findings of the study are
in. an article "The

since the

service

the

realistic solution of the Ger-

problem," according to a
study by the Institute of World
Affairs of the New School for
Social Research,

Gibson,:: Associated
Washington advices added

resignation of Daniel WTracy. He is said to have been
taking a major part in represent¬
ing the Labor Department in most
of the postwar labor disturbances

cop*

man

Mr.

earning: situation of thei^inveat-

Chanin Bldg. 1/45

Park Ave.

Michigan, David A. Morse of New
Jersey, and Philip " Jlanhah b;

debtor's: a?sotsv which Secretary of Labor, called for
would determine a. cut "off point under the Labor Department re¬
of junior securities*.
organization program which in¬
*-

Chanin Bld& 2/45

workable, but

plan for Germany is not only

widely spread view "fhe plan is the only cooperative, on©
thus far devised which offers

value qf a

President; /Truman on June i 7
as Assistant Secretaries

of : Labor

Press

BOUGHT

Bell Teletype NY

Potsdkin

Yhe

jrary to
"
-

In the "ChahiriJSuilding reoj> was at one time
Congress of In¬
organization just approved in the dustrial Organizations director fr
New York State Courts, the allo¬ Michigan.
He
was.
appointed
cation of earnings was changed, Second Assistant
Secretary in the

REAL ESTATE

40 EXCHANGE

bond¬ nominated

a ge

that there are free assets not sub¬

foreign suppliers, and to block her revival permanently—accords
ing to conclusions of research study by Institute of World Affairs.

>■

Current failure to follow Potsdam Plan threatens to foist Germany,

see

Germany Musi Be Established
As Single Economic Unit

now

with C. N. White &

Co., Central Bank Building.
l
'

■,:-y. ■»: '
(Special to the

.v./-"'

{ '

\ > y

Chronicle)

Financial

(Special to The Financial Chronicle)
:
OMAHA, NEB —Lloyd D. Mat¬
DETROIT, - MieH. r^ George thews has become associated with
Begg, Jr« has become affiliated Kirkpatrlck - Pettis
Company,
Omaha National Bank Building.:
with Wm. C. Roney & Co., Buh
Building/: Id the pastihe Wfts with
:fsrweini to The Financial chronicle); '
P., A. JHastines
Co., apd D.
PALM BEACH, FLA.—Wiliard
Woodruff 8c
A. Patterson is now with Merflll
Lynch, Pierc \ Fenner & 'Beane,
Bassett Buildihg.
" -f 1
;

Real Estate Issues
Commodore

tSnaelel

Hotel, I nc.

The

PORTLAND,

Financial

chronicle)

MAINE—Howard

L. Cousins, Jr., has joined the staff

J. S.Strauss >& Co.
155
Tele.

pf, R£ M, Horner ■& €Broad
Btreet,
New York Cityv ' after
serving in the U. S. Marine Corps.

Specialists in
Descriptive Circular

«n request

Montgomery St., San Francisco 4
SF

EXbrook

X,.

1285

(Special

Sellgman, Lubetkin & Co.
Incorporated
SPECIALISTS

REAL

ESTATE

Broad Street, New

York 4

HAnover

2-2100

to The

Chronicle)

Financial

lake &

SECURITIES

Co., 191 Middle Street.

'Special

y SAN
Edwin

SECURITIES

The

Financial

Callan

OFFERINGS WANTED

;

CALIF.4

IProld

a^d

/Hotel Bonds with Stock

Th*

Stock alone
SAN

:.v.'

Madison
Chicago

Hbtel
\':^\yyyXy

Transportation Bldg., Chgo.

Beacon Hotel 2-4, 1958

Savoy Plaza 3, 1956

Wesley

ShernethCorp. 5%, 1956

Flehariv

Hotel

The Madison 3; 1957

Lexington Units

National Hotel of Cuba 6, 1959

870—7th Ave. 4 y2,1957
Eastern Ambassador Hotels Units

C. H. TIPTON
-Members o)

FIRST LA SALLE CO.
11

Amott,Baker & Co.
Incorporated

So. La Salle St., Chicago 3, 111.

Tel. Central 4424

Tele. CG 660

150 Broadway
Tel.

BArclay 7-488Q

New, York 7* N. Y.
-

Teletype NY 1-588

N. Y. Security Dealers Ass'n

iRnoptni

.Cw*«it.»)

CALIFS-

Craig and W'l'am S.

pre

with De»n Witter &

jAj-Tw

,;•!

FINANCIAL, CHRONICLE)

WORCESTER,? MASS—John J.
Timort

111 BROADWAY

Mont¬

Co., 45 Montgomery Street.

SECURITIES CORP.

(ViT-Ct and Land Trust Units)

FtNANctAt

/FRANCISCO,;

Governor Clinton Hotel ti 1952

100 North La Salle St. Bldg.

Street.

gomery

Salle

Chronicle)

FRANCISCO, >
C.

of Brush, Slocumb & Co., 1

L^re have been added to +he staff

One La Salle Co.

LottHotels Co.,

PORTLAND, MAINE—William
H.I Cha^nle* 'Sty is with Timber-

Members New York Security Dealers Association,

—

REAL ESTATE

with

Ilanrahan &

Co^

332 Main Street. *
l.'j;

New York 6, N.

(8pecial

to The

Financial Chronicle) :.<.u

Telephone WOrth 2-0510 '•,

WORCESTER, MASS.
A.

—

Sophif

Kolodziek is with II. L. Rol?-.

Uinc

JPr

QOf)

Main' Siroot

.Volume 163

Number 4500

THE COMMERCIAL & FINANCIAL CHRONICLE
Anhwei

China Is Taking Steps to Restore and Improve/
lis Transportation Faciiiites Damaged by War
i

which

area

was (

inemy

fered

•"

fabricated housing units , will

equipment.

}

States

hBefween

China also maps plans to improve railroads and high¬
Import-export trade is reported on .increase at Shanghai;:
w- American
pre-fabricated homes to be used to relieve housing short¬
.

damaged or crippled diiring the^
; war, according to articles appear- chiefly of

$ mg- in

the

issue

the

"China

Trade. News", published by the
China-America Council of • Com¬
Industry, Inc., scheduled

merce &

improye as well
which

plaited and knitted goods, toWels,
clothing, straw hats, straw braid,
fruits,
mushrooms, - blankets,

chinaware,

to^

Announcement is made, for instance, that several score Ameri*

expected to total about 25,000
short tons this year as against the

can

pre-war average < of 89,000
The
Fushun
and
Fushin

be' distributed

readers

morrow.
?,

•

engineers

skilled

and

me-

| chanics have

been engaged oh the
2 Anicrlean
west coast during the
past few weeks-to help rehabili¬
tate traffic on the
Yangtze River,
China's greatest
transportation
/ artery. A large fleet of American
war

surplus

vessels,

\ LST*s, LSM*s,

including

LCT^ LCM's and

■

Jl^CV^s, which China has acquired,

will be the basis
upon which these
men
will develop a vast, inte¬
grated transportation system for

moving

freight

and

from

Shanghai at the mouth, it is said.
•'

and

dock

yards destroyed

sumed

according to

year,

attributed

tons of coal

Four

Joint

National

Banks

peak, last longer and

has

Analyzing"the
Instalment

agreement

the

believes,

wartime

merely

The

Canton-Hankow

matter ;on

are in

—

Consumer

the

roof—hold

same

60%

■'&<:■

-/((((((,

■'

(•

■■>

■•■■

...

pttcttt tc

oi?

year amounted to

five

war

years

and

five pre-war

year

$2.16, the five

of $1,503,19

average

comPared to $4.10, the

he war yea

aveiage

pre-war year average.

?,^a_

(

thi» War Year*

Were carried by man^-driven junks

•;

control of her own roads and, although she will need large foreign

NET WORKING

Joans and credits, she is for (the
(first time in a position to plan

railway development in
'hated manner.),
News"1

new

highways

and

144,000,000

/-'based
at

$32,000,000

and

-v£■' rg'g

1000/ and Tomorrow

'•

It has often been said "if
you can build a' submarine
you can build any*.
the ingenuity needed in the
such

exports

consisted

1945

i....

s :

tffV

^ J. vf

(

\11

...

£rr'i

}

1944

'
.

1943

$14,062,377

J.:;>

$12,949,040

-17,166,186

15,302,343

'•

10,944,543

6,557,163

6,259,054

2,314,865

2,660,480

2,747,148

2,802,937

20,21

18.61

17.30

SCiiT" ?

26.90

24.13

20.40

17.54

26,411,297

82,931,657

18,938,961

13,462^57

20,895,319

8,634,035

24.18

28.91

20,323,169

25,278,374.

3,497,291

were

(

11,215,997

5.8 to 1

2.3 to I

2.0 to 1

$10,963,837 at December 31, 1945 but increased

1.6 to 1
to

$14,653,431

2.2 .to 1.

of April 27, 1946,

sundries-aggregated $7^27^59 atDecember 31,1945 but decreased to
$3,105,073 aspf April 27,1946.
on December
3l> 1045, as against $6,323,082 on December 31,1944,

(•;

'/'■

(;..

v': '■/•//'

ELECTRIC
A

V*'

"S ^

r
•

'i}

33 Pine

EtECTRO

DYNAMIC

Bayonne,N. J,

WORKS

7.777:7: >7;:; 77 '' :i777:

NEW lONDON

' '

;//■'

'.''Vv

SHIP

'•

'
-.:;v7'7 (7 777:::■y/

AND ENGINE WORKS

Groton,Conn.

L. Y.; SPEAR, President
'■.■•/

( ;"'•■■// j '/'i/VV"

■

COMPANY
'

Street, New York 5, N. Y.

-7:

(:"/ ^ '

BOAT
V

'
.

$2,146j084 at book value

■;

$10,304,926

13,096,160

6,894,360

2,160,685

NE-f INVENTORIES.........

CASH AND U. S. (GOVERNMENT SECURITIES amounted

INVENTORIES, AT< COST

1942

$12,036,338

7,007,995

%*£

7,483,402

i...............

quantity to the printing trades. The EBCo plant is
producing "Armorlite" truck
bodies, unique in their extremely light weight and in
payload capacity; steel
trawlers for the fishing
industry, designed for ruggedness and speed; and
foundry castings for a large variety of industrial uses.
\
The Elco plant is now
building and taking orders for a complete new lino
of top-quality pleasure boats in five
popular ; lengths, and is using its wood
fabricating equipment and craftsmanship in developing
specialized automotive
bodies and trimmings.
The Electro Dynamic plant has
developed a new.line.of"electric motors tc*
be mass produced for industrial and marine uses.

18,024,645 ;

.r...

$ 16.825,878

( ACCOUNTS RECEIVABLE-U. S. Government and

ex¬

Of the imports,

shipments of UNRRA
The

:'(• '■"

■ -■

CURRENT LIABILITIES—NET.

ton-

quarter, y imports
listed as. totaling ap¬

ports, $6,000,000.
were

'«"\

f i

designing and building
a
complicated mechanism, automatic
machinery, for instance, preinsuperable problems. EBCo is now. developing an automatic
"Electric
Pin-Boy'* for bowling alleys, and has recently acquired exclusive
rights to
build a modern, medium-sized, color offset
press to be made available in
cf

sents

>/-/

CURRENT RATIO—ASSETS TO LIABILITIES (as
above)

uary-March

85%

;

/, ) Indications are also given that
the import-export trade is reviv,/ing at Shanghai. During the Jan¬

material.

i'"

end of each fiscal, year

kilometers of freight traffic, it is
estimated.) <

proximately

ASSETS,

CURRENT- ASSETS PLUS

added^

are

-4

695,725 shares outstanding. December 31, 1945
( (NET WORTH PER SHARE OUTSTANDING..../......!

mileage,. will give
highways a monthly can
parity (of/ 500,000,000 passenger-

there

COMPANY

thins" For personnel with

;

net Working assets per share. :..:.......,.....

revealed

Chinese

(kilometers

;77:

SOME BALANCE SHEET ITEMS IN COMPARATIVE FORM

i U

NET FIXED ASSETS

Cfrina, iWithinVihe next^^^
The

GROSS, FIXED ASSETS.

that/ the
Chinese Ministify of Communicagtions has drawn up a plain calling
for the construction of 60,000
kilometers

SURPLUS AND SURPLUS RESERVES........ 7

a coordi-

(The May issue of the "China

Trade

J,,

■/' .1

Now that the sys¬

tem of
extraterritoriality has been
/(abolished, it is said, China has

«.••. "'-.i-.,-;

45 %

.v'%

CONTRIBUTIONS TO VICTORY:' Eloquent evidence of the leading
part
which the 97 modern type EBCo submarines and the 399 Elco PT
boats,
constructed for our Navy
by the Company, played in winning the Victory in
the Pacific is given in the colorful and
pictorial Annual Report mailed to
stockholders on May 16th. Devastating inroads on the
Japanese Navy and
merchant marine, from,the very outset of the war, piled up a spectacular
total to the credit of the United States submarine service of
10,689,800 tons
suqk and 5,785,500 tons 'damaged, representing a total of 3,642
enemy ships
sunk or .damaged, &U as recorded in final-official Navy
communiques.
The record of the famous Elco PT's, the "fighting furies of World War
II",
is most impressive. The contributions-made
by other Company products are

) and hand carts and 50% by. hu-r
-

^-(((''7

r7-

DIVERSIFICATION FOR THE FUTURE: i The
Company', financial po;ltion is excellent, as is disclosed in the balance
sheet items shown below. It is
IogicaI that the development of new products will keynote the
Company's
future plans. The submarine should remain an
important Company product
and may assume an even greater role in national
defense, in the publicly
expressed opinion of high naval experts.
(
'•
'
p
7

yCars, it is pointed out. only 5 %
(Were transported by railways and
while

a,so recounted in the 1945 Annual Report, a copy of which may be had g
upon request made .to the .New York office, 33 Pine Street, New York
S,
New York.
^
*'
■(
-> '

(

.Net.

V
aj
and $1.0Q was padt in,1942., Dividends
have been paid each year for the
past ten years.
^K ovi nnn
Unfilled orders at December 31,,
^945 had declined to $10,871,000.

agricultural
products
by China in pre-war

carriers.

f •' ;

BOAT

.„,

;

man

(1936 through 1940). The

E?t!t?0
co'ia

kill without railroad facilities; Of

trucks-

;;',v ;(('(.•;(( '(;(
|»

(1941 through 1945) of $69,911,108 and with
$11,972,963,

$2,855,163 and

Trade News" will say. It is shown
for example/ that
eight of the 26
5 provinces in China, with a total
jarfea of 1,692,000 square miles are

automobile

7;'w('(::■

i-V;.';

EtEGTRIC

•

marketed

(China is keenly aware of her
inadequate railway facilities and
chas great plans for the developnxent of her railroads; an article
in the July issue, of the "China

the

-7777

<a,(•
from operations for the 1945
an annual average during the

the arniuah average for the five
pre-war years

ail

:
W

FOR THE YEAR ENDED DECEMBER 31. 1945

income

$45,851,910, comparing with

r/,

Financial Review

rn5Y?oATTAMc
RESULTS OF OPERATIONS;, Gross

being impeded by a short¬
age of sleepers and rails, it is
.

THE

work is

g pointed -out.

the

liquid assets other than currency.
The top 20% hold 77% of the li¬
quid asset holdings, while the top
30% hold 87%.

the

hands of the wealthier segment of

ulation.

,7%

which opinions differ,

nlllii

represents

purchases

the but most of the
savings

will

HIGHLIGHTS

Railway

power

savings

delayed

May

Keelung.

(

supply" of purchasing

this

| That sort of price behavior,

produc¬

temporary problem. How much of

down

come

further,

because

power,

large segment of the pop¬
the population. The June Federal
It probably will set off
Reserve Bulletin, just out, shows
another wage-price turmoil liter
the top 10% of the spending units
on, especially with the ending of of the
country—meaning people
Factors of food-price controls. The whole living in the same
family, under

Cost

Lending

to China under

concluded

Which Was badly damaged
during
■-/ the war is also
expected to be
ready for through: traffic by the
Vend of this month though repair

;

The

Credit

currency

altering

tion is catching up, he said, " The

famine-relief program is harm¬
Department,. ( American
Bankers Association, 12 East 36th fully affected; because the Admin¬
aid in the recovery of the silk in¬
Street, " New York 16, N. Y.— istration has been trying to im¬
dustry in the Kiangsu-Chekiang- Paper.
prove the supply of
grains for

000,000 in American

•.

and

Administration

Bookshelf

ap¬

proved a loan amounting to $10^-

now to ships of those nations
having treaties of reciprocity with
/China: Shanghai; Ningpo.
Yungchia, Amoy, Swatow, Tientsin,
Chinwangtao, Haishow, Chefoo,
Yinghow, Canton, Foochow and

►

sharply

harm

the

J open

chasing

and

headed by speculation.

Man's
[

'■£■■■ 3 6, it is also reported, However,
the following ports are said to be

•;

ob-

rise

re¬

The

day.

Office

price

economist observed.

The Fushin mines

Head

great difference between

jectiyely-created

coal

bo rebuilt
With $50,000,000 worth Of American
dock yard
equipment, now
scattered among various -Pacific

islands, being sold

Business

producing 5,000
day, one-fifth of the

yielding 3,000 tons

The

now

latter Will go to a' much
higher

are

former output.
are

consumption

the ratio between animal and feed

prewar

one

tons.

production, it is said.

Fushun mines

human

production of radios, now at about

are

mines in Manchuria have also

To Prevent Price Boom

; (Continued from page 3346)

during-the^war/Will

Chinese

ar¬

Exports of turtg oil from China

; /

tungsten

pre¬

Chinese cities, it is said, to relieve
the acute, housing situation.
<
',

other
characteristic Chinese products.

;■ *

1,500

"M1
■
silk/.yarn, thread,

raw

and

levels; tires, which are
prices, so as to divert grain to
being produced at far above
human use.
prewar levels und are still coming
Chang,-: general <manager of the
up; etc., So, in all. likelihood if -; Asked Whether drastic mone¬
newly-organized Prefabricated
the V nation- waited another
nine tary, measures such as have been
Housing Investment Corporation.
months before lifting price con¬
The houses are thrCe^room uhits
used in Europe would be an an¬
trol as Congress is now
doing most
manufactured for the U. S. Army
swer; to the main inflation prob¬
of the steam would be let
out and
during the. war by Montgomery
we would
get away with very lit¬ lem this country faces, this econ¬
Ward & Co. American prefabri¬
tle more postwar
price rise when omist replied in the negative. Yon
cated housing units will be used
we
lifted the lid.
Thus, there is don't need a drastic cut in pur¬
extensively in Shanghai and other

badly

were,

'V.

•

this

Statement

in large cities.

..The Chinese Government is taking steps to
to restore the transportation facilities of China

1,000

rive in Shanghai from the United

ways.4

age

Need Nine Months More of 0PA

thorough devastation, it is

occupation and suf¬

new transportation system is being developed for Yangtze River
region v/ith help of American engineers and skilled mechanics.
Chinese dock yards are being rebuilt with American surplus war

long

Uhder

revealed.

:33.53

|v ■77.:(/;7('(7-7(-

7;.'

ELCO YACHT DIVISION

Bayonne,N.J.

;:(7;(.7

^93';S®K®^9MMERCiAl^(il'--Fi^NClAI#:;CHR6NICLfeAM^'v^-^';^:~

3356

will exclude the Denver
Grande Western and that

summated.

All

reorganization
would

Early last week it had begun to look as if the railroad reorgani¬
In a sweeping decision in the
Denver & Rio Grande reorganization the Supreme Court again upheld

out

Circuit»
Court recognized

The

securities.

new

set

the basis of war
the benefits from these
(improved
finances,
betterments, and retire¬
senior
claims) should
the benefit of the old

earnings,
earnings
property
ment

inure

junior "security holders,

...

that

■

there had

been considerable criticism of

re¬

organization under Section 77 but
pointed out that no new legisla¬
had

tion

been
passed since its
upholding of the present

earlier
law

the St.

Pacific

Paul

was

and Western

The

hausted

the Rio

even

Chicago Railways

talizations

Cons. "A" 5s,

had received

1927

timism

over

One" major dissatisfaction with

the

plans

serious blow. .Op¬
the fairly rapid con¬

quarters

zation

iWf"

■

Cement. 10M$

on the belief in
that
the
large

the

railroads

now

received

Senate

are

was

not

passed

blow

available.

been

delays.

Cer¬

hew legislation will

not

readjutment. It will pre¬

Stock

and

turmoil

for

least

another

tinuation of the wild

speculation

ilate

the

Press

New

York

problems

which

face

those

who

with

same

can

friends.

be thinking
things. ;
to

seems

demonstrate

anew

capacity for self-governmenv?

.'_Vj'

can

New York 4, N. Y,

en¬

nations live to¬

labor and capital co-

can

ral

conscious that in¬

well

principles

Schram

Exercises

Vermont,

17, 1946.

St. Louis-San Francisco Railway Company
When issued securities

address

tjie

of*

the men and
who constitute it? Have

women

ever thought that social im¬
morality is a contagious infection

that

logically should be treated
like any other pestilence?
All of these problems, if you

stop to analyze them, involve hu¬
altitudes father than materi¬
In the broad, sense of
the
word,
they
are
spiritual
man

al factors.

problems

rather

than

economic

problems.
so we

Mr. point of all I

Commencement

first half

back to the main
saying. In the

of the

Twemieth

the

We have

continuing interest in

"WHEN ISSUED"-SECURITIES

Bought-—Sold— Quoted
When issued prof its discounted

Josephthal & Co.

SUTRO BROS. & CO.

Washington

Members New

120

120 BROADWAY, NEW YORK 5, N. Y.

York Stock Exchange and other exchanges

Broadway

New York

Telephone REctor 2-5000

Telephone REctor 2-7340

County Ry,
3%s, 1954

Mclaughlin, reuss & co.

BUDA CO.

Members New York Stock

Exchange

GETCHELL MINE, INC.
BOND BROKERAGE SERVICE

ROCK ISLAND OLD PFD.

Adams & Peck

Specializing Art Railroad Securities

UNITED PUBLIC UTILITIES

NEW YORK 5

ONE WALL STREET
63

Wall

Street, New York 5

BOwling Green 9-8120
Boston

Tele. NY 1-724

Philadelphia

Hartford

1. h. rothchild &

TEL.

co.

Member of National Association
o1 Securities Dealers. Inc
•

52 wall

street

HAnover 2-9072

y. c.

Tele. NY 1-1293

Cen¬

University oi tury, i scientific
and
inventive
Burlington, Vt., June progress
has " Complicated
the
(Continued on page 3379)

■

Members NewlTork Stock Exchange

mo¬

And
*Part

BeZl Teletype—HY 1-310

control atomic

can we

How

Denver & Rio Grande Western Railroad Co.

Telephone BOwling Green 9-6400
Teletype NY 1-1063

men

better than the consolidated

conversations

gether closely, as they must in
these days of quick and easy com¬
munication, and get along peace¬
fully without wars or threats to
peace?
'

New York 6
.

make

dividuals

ergy?

Stock Exchange

Broadway

Telephone—DIgby 4-4933

the

conquest of disease without sacri¬
ficing freedom in the medical pro*

must live in the second half of the

How

Railroad Bonds and Stocks

pflugfelder, bampt0n & rust

RAILROAD STOCKS-BONDS

25 Broad Street

prog¬

when

power.

Selected Sit nations at all Times

GUARANTEED

material

developed

people change their attitude every
time they go to the polls?
How can humanity continue its

;

HoW

!'• ^

which

has brought.
The main problem

How

Members

time maintain popular disci¬

policy
Emil Schram

en¬

vironment

under

just laws and at the

as society must
by people hope¬ Twentieth
be moral?
Century?
ful that value can be legislated
Have
we
forgotten that the
Bead the daily press, listen to
where there is no normal earning the radio, take note of your casu¬ ethics of society cannot be any

the

Chicago 4, 111.

SECURITIES
l'' i"

be-,

other

RAILROAD
^ V' -'v

va¬

govern¬

efficiently

pleasant things for the common
good? How can a continuity of

so- ;

has

tolerance

pline? How can the electorate in
a democracy be trained to do un*

will be subject to exhaus¬

Specialists in

same

compe¬

\ 'X"C'

ciety

democratic

can

function

stable and

neglect, ?

about the

Commodity Exchs.

So. LaSalle St.,

How
ment

worse, but,
because of
our

and

relations replace prej¬

passion? Oh, how so¬
ciety is poisoned by hate!

nor

the soul of

reason

can

human

udice and

neglect, has

our

Exchange

weather,

Everyone

120 Broad way, New York 5, N.Y.
231

The

How

steadily

state

MEMBERS
York

;

done

less

Ernst&Co.
New

has

little about it.

better

has

in the old stocks

reports from Washington, how¬
ever, indicate that as written it

leading Security and

velopment,
but

'■w?:

operate without friction to pro¬
duce the things the world needs?

of this new fession?
What shall we do with the ex¬
generation, whether it likes it or
tive tests as to constitutionality not, is to develop the souls of panding leisure which the devel¬
and the prosecution of an untold individual men and women to a opment of machinery and shorter
hours
have
spiritual condition where human working
brought?
number of cases right through to
being will be able to live together How can we make our leisure not
the Supreme Court can be taken in a
complicated society and have only satisfying but productive of
for granted.
richer lives?
In the meantime, peace of mind.
What are some of the specific
there will presumably be a con¬
And, finally, what can we do

full details of the bill;in the form

which

spokesmen

weather, but that
talked a lot about

;■

v,*

s de¬

tent to assim¬

lation

passed the so-called Wheeler Bill.
At the time of this writing the
in

need -for-

spiritual

ress

late in the week when the Senate

Timm Aircraft

the

rious provisions of any new legis¬

bank¬

serious

It is often said that everyone talks about the
does anything about if.
Our generation; has

no one

of Con¬ got neither

couple of years. Certainly the

The new hopes for expeditious
reorganizations for at least three
of

■

come

amount of vital and controversial

ruptcy

Schram, in stating main problem for new generation is to
develop a spiritual condition where men can live together in peace
of mind, lays down specific problems to be faced as: (1) coopera¬
tion of labor and capital;
(2) replacing prejudice and passion by
reason and tolerance;
(3) making democratic government function; and (4) making individuals as well as society moral. Holds
; to "profit motive" as mainspring of progress, but sees highest satis¬
faction in contribution to human values. Says industry is in \
strait-jacket and free market no longer exists.
'
'

sumably be highly successful in

legislation.

Missouri Portland

Mr.

keeping reorganizations in

legislation facing Congress mili¬
tated against the passage in this
session of any new reorganization

Preferred

eyes

speed up the process of reorgani¬

based

was

most

the

interminable

tainly

revision

gressional

summation Of at least these three

Marion Power Shovel

to be in the

now seems

By EMEL SCHRAMM
President, New York Stock Exchange

in spite of our

Section

also felt that any hopes for
sending the Chicago, Rock Island
& Pacific plan back to the I. C. C.
and

enough

drastic

cards.

theirt legal

reconsideration

perpetuate unsound railroad capi¬

possibilities
for preventing consummation.- It

for

that

In any event, a com¬

bill

promise

than

radical

the Senate.

was

the

sible that the House bill will be

:•"$ On the same day as
Grande : decision
was

reaffirmed.

still

was

re¬

strongest
proponent
of
drastic
railroad reorganizations. It is pos¬

cases.

Lacks
Spiritual Development

major

voluntary plans of capital

Wheeler

Material Progress

however,

presumably be turned back

Senator

;
The Supreme Court ~ also up¬
handed
held, for the first time, the right down the Supreme Court refused
of the Commission arid the courts to grant a writ of certiorari to
to. confirm a reorganization plan the debtor corporation in the St.
over the adverse vote of one class
Louis-San Francisco reorganiza¬
of security holders.
Finally, the tion proceeding. With these two
right of the Commission to elimi¬ decisions it was felt that the op¬
nate valueless securities in reor¬ position to the two plans had ex¬

ganization

other

adjustment.
1
■
It is now up to the House to
act.
From
present
indications
there appears to be little question
but that that body will approve
some similar new reorganization
bill. Agitation for such legislation
had attracted a large measure of
support a long time ago when

of the Interstate Commerce Commission under Section 77.
It'held, in reversing the Circuit Court of Appeals, that any gain or
loss after the effective date of the plan was a benefit or an injury to
powers

Court had earlier ruled that while
the new; capitalization should not

the

roads,

•

even

to the old stock holders to work

zation picture might be clearing up.

the.

Rio

if
the legislation is enacted into law
that reorganization can be con¬

Railroad Securities

Thursday, June 20,1946

HANOVER 2-1355

TELETYPE NY 1-2155

Philadelphia Telephone — Lombard 9008

This is. Johns-Manville's report to the
Here

the

are

highlights of Johns*

Manville's annual

statement

in the critical

of 1945.

year

With J-M

prices up less than 5% above prewar

levels, with average wages increased by more than
50% and with the cost of materials substantially

American Public for the past year.

higher, the profit margin on a number of products
rapidly disappeared. Soon Johns-Manville found
it could hot make a reasonable profit on some
items and could not

Total Income

•

For all costs.

•

$86

million

others. As

million

discontinue

(except those shown below)

To stockholders in dividends

leaving in the business

Vh million

million

...

million

No report to

the public by Johns-Manville would
complete without discussion of building ma¬
terials and housing.
1
'
be

New bouses

Earnings after taxes
of total income

were

$5.72 per

6 cents per dollar
share of common

stock.

largely because there
shortage of buildihg materials. Why?/; ■

Wages and salaries

were

42%

cents

per

dollar of total income.

Taxes

were

Taxes

★

were

common

★

cents per dollar of total income.
equivalent to $3.94 per share of

stock.

such

figures

shortages, rigid
price controls without needed adjust¬

ments

and hinderances from certain features of

government's planned bousing program—
with unfilled jobs on one hand and
unemployment
relief on the other—production of
building ma¬
terials is seriously hampered.
.

are

important items,

as:

MANPOWER AND PRODUCTION

Although fully prepared with a detailed program
for reemployment of veterans; and although
ready to provide its share of jobs toward the goal
of "full employment," Johns-Manville found itself
as did
many industries unable to go to capacity
production largely because many war workers
accepted unemployment compensation supplied
by government instead of peacetime jobs.

Johns-Manville completely; agreesh with • the
objective of getting as many homes built as pos¬
sible, at the same time encouraging as much
industrial construction
necessary

relief

as
practical. Freed of un¬
restrictions and granted modest price
critical items, the building materials

manufacturers of the nation
materials

called for in
for 1946. In

Today, with more than 13,000 full-time em¬
ployees, J-M is trying to recruit 3,000 veterans
for additional jobs to increase the flow of indus¬
trial products and critical building materials to
and dealers all

over

the country.

STRIKES AND PRICE REGULATIONS

As Johns-Manville bent every

effort to obtain
more employees and to produce materials in the
greatest volume possible, a new difficulty arose.
Higher wages were advocated to offset supposed
reductions in the work week. Prices, however,
were held at
prewar levels. There resulted strikes
in many industries, most of them based on de¬
mands for 30% wage increases. In November,

J-M's

can

turn out

enough
housing units
the government's housing
program
addition, they can produce enough
start

the 1,200,000

for several billions of dollars of other construction!

ABOUT THE FUTURE

consumers

the

Behind the

are scarce

Because of strikes, manpower
wartime

★

obliged

HOUSING

36Vz million
.

of manufacture

making and selling several basic

products.

wages

for taxes

recover costs

result the company was

employees for salaries and

To government

★

Despite the obstacles which

are

discussed in this

report, Johns-Manville has faith in the future.
We believe in America and in the American
sys¬
tem

of free

enterprise.

We believe that it

vide jobs
In 1945
and

for veterans

announced

expansion

Given

isJusfrasTmportant to^ pro¬
as
a

it is to provide housing.

$50 million improvement

program.

opportunity to expand and produce,
we
anticipate a big increase in the number of
permanent jobs at J-M and in the volume of
an

materials

supply.

largest plants, still working overtime
closed by strikes and remained
four months—the first major strikes at

two

schedules,
closed for

were

J-M in 25 years.

PRESIDENT^ JpHNSJMANVILtn CORPORATION

this

Notes

63%

over

National

Mutual

that

reports

sponsor

of all shareholders qf
Securities Series, own

shares in two

of the Se¬

The conclusion is that: "This

ries.

figure discloses an ever-growing
investor need for multiple invest¬

Results of Professional Investment
"The first

public offering of

ment

Management

Incorporated investors

was

original

total

investment."—From

recent letter of the

poration. 3

Parker Cor¬

**A Dash of Cold

Water'*

George Put¬
nam Fund in their June Portfolio
Review quote from two industrial
leaders who have recently sound¬
ed a note of warning over the
The Trustees of the

optimistic

generally

tion of what our

interpreta¬

huge money sup¬

ply will do in the way of guaran¬
teeing prosperity.
Chairman of

etc.—in the hands of

our

corporations is not a criterion,
for that great pile was. accumu¬
lated in. creating goods and serv¬
ices which were, destroyed and
were

available

never

for

exchange against the paper.
We
do not yet know what that pile of
paper will do to our economy."
In

similar vein W. C. Mullen-

the Southern
California Edison Co., made the
following observations: "Notwith¬
standing this upward trend in

dore,

President

tax-free

and

need

not

re¬

ported as a dividend in the usual

and

hence

Split

Hugh W. Long & Co., in a re¬
cent letter and folder explains the
100%
stock
distribution which
Fundamental Investors will make
on June 22.
This stock dividend

citizens

manner.

•

Shareholders who bought stock
around $20 per share—as recently
three short years

twice

have
were

as.

purchased

—

now

and each new

is worth approximately

the old share

much today as
when

ago

many

was

acquired.

Favored Industries
The June Investment Report to

of Directors of

Board

the

Commit¬ business.
I' cannot refrain from
tee,
Mr. Voorhees,
recently again directing your attention to
^warned that: "The enormous pile the
danger of too favorable con¬
of paper claims — hand money, clusions drawn from current busi¬
bank deposits, Government bonds, ness statistics. The free, not to say

"It

Group

tries.

frenzied, spending for such goods

S. Steel Finance

the U.

services

and
the

LOW PRICED

available

are

Securities by the Investment Re¬
search Department of

Distributors

Group emphasizes the relative at¬
tractiveness of the heavy indus¬

reconversion
war's

recovery

maladjustments."

primarily in the 'heavy'
that

industries

New Horizons and

Velocity

National Securities &

Research

Corp. has just released two attrac¬
tive new folders on its Industria

eral

the

investor

years

before the imminent
building boom reaches its peak.
Selected stocks of these heavy in¬
years

dustries

and

the

Stocks Series and the Low-Priced

.» PROSPECTUS ON REQUEST FROM
'

YOUR INVESTMENT DEALER OR

Distributors Group, Incorporated
63 Wall Street

•

One

New York 5, N. Y.

of the

Staff

the

recent

their previous bull-market highs.

its

piece, plainly and with massive
authority.
After several months
of
digesting
the
reconversion
progress,
including
what
must
have been a tough job of balanc¬
ing severa near-term uncertain¬
ties against an- attractive
longrange outlook, the average have
recorded
a
major
continuation
signal. This action indicates that
.

most
as

investors

to the

now

feel satisfied

future, and that they are
their optimistic attitude

backing

with their cash.

primary trend up¬
renewed; the major
market, although now over
four years old, remains
in full
force and effect, its vitality unim¬
paired either by the extent or

ward has been
bull

duration

rise

the

date,

by the economic difficulties of the
last

trend
the

will

remain

the

That

upward over
cannot,

months

several

months.

several

judgment, be subject
reasonable doubt."

The

Money You Don't Spend!

railroads

our

"The

writes

money

you

don't spend,"

Walter Morgan, President

of Wellington Fund,
tate

whether

"is

es¬

your

have $1,000 or

you

5|i

the

current

issue

problems of investing, and
explains how to "Build Your Own
Program."
Copies of this
booklet may be had by writing to
the Keystone Company of Boston,
50 Congress St., Boston 9.
»

How to

current issue of Keynotes,

same sponsor

showing how a

the

is made up of de¬

program

fensive securities and 35% of ag¬

gressive securities.

Bond

Manhattan

Fund,

In the six months ended

Manhattan,

1946,

further

achieved
net

assets

the

end

Fund

Bond

growth.
Total
$24,456,805 at
period and the

rose

the

stockholders

number

Inc.—

April 30,

rose

Scudder, Stevens & Clark Fund,

net assets of $26,June 10, 1946, equal to
per share on the 216,991
shares outstanding on that date.
This compares with total net as¬
sets of $21,373,443 on June 9, 1945,
equivalent to $104.65 per share on
the 204,234 shares then outstand¬
Inc.—Reports

031,047
$119.96

ing.
Mutual Fund Literature

Union Bond

produce a reasonable rate of
income, and increase it without
undue risk, is the subject of a re¬
vised
booklet
by this sponsor.
Copies may be had by writing to
Wellington Fund, Hospital Trust
Building, Philadelphia 7.

Calvin Bullock

—

new

folder

giving a brief outline of Bullock
Fund; also a current memoran¬
dum pointing to the emphasis on
growth in the management of this
Fund.
Hare's Ltd. — A new
folder on Stock & Bond Group
.

Shares; also a current memoran¬
dum

"The

destructive

Fund B

Priced at Market

money

worth less."

utors Group—Revised

Distrib¬

folder, "The

Many Markets";
current issue of Railroad News,
"Outlook For Rail Stocks Now
Stock Market is

Brighter"; revised portfolio card

Prospectus upon request from
your

mmt

A MUTUAL INVESTMENT FUND
Prospectus from your investment
220 Real Estate Trust

ITHElOROWTGf

Building

•

dealer

Philo. 7, Pa..

Prospectus upon request

i OF IMVESIIHB COMPANIES i

investment dealer or

^ll.!»JLILMIMWIRIIIIIIWiillllNlllMlfcl|i|l|

|M I l,j ,i |lill|HM"T~T'

NATIONAL SECURITIES &

Lord, Abbett & Co.

RESEARCH CORPORATION

INCORPORATED

120 BROADWAY
New York

Now York 5* N,

Y#:

Chicago

Los Angeles

IS/lassachusetts
SHARES OF CAPITAL STOCK OF

investors

Sfund,
Write

I rust

for prospectus relating to the shares

of either of these investment funds, each
of which is managed independently of the
other

VANCE,

pi
Prospectus maybe obtained
from your local investment dealer pr
■

•

Prospectus
your

Xlie

may

AO Congress

of Boston

Street, Boston 9, JStess.

lit

the

parker

different management

SANDERS

corporation

ONE COURT STREET. BOSTON 8, MASS.

COMPANY

BOSTON
NEW

group.

111 DEVONSHIRE STREET

be obtained from

local investment dealer,

Keystone Company

YORK
.

Broadway

120

infla¬

tionary forces which are making

Ab¬

protect this estate, have

stracts, Lord Abbett refers to the

12,100.

Securities Series

BOND SERIES

presents a table
balanced invest¬
ment program for $50,000 might
be set up as of today,
Under its
"Formula Plan Balance" 65% of

this

$100,000."

(which
always
prosper - when
*
*
:j:
Common Stock Series. "New Hori¬
heavy industries prosper) are thq
zons for the Investor" is the title
Another attractive little booklet
outstanding
investment
values
of the folder on the Industria
just released by Wellington Fund,
available today.
Stocks Series.
It lists many Oil
discusses background and growth,
"Aviation is a growth industry
the new products which are just
investment
procedure, and
in¬
which no investor can afford to
over
the horizon, and describes
cludes short biographical sketches
overlook; chemical stocks are out¬
them as "Investment Opportun¬
of the management.
standingly attractive to, the in¬
ities in the Making."
vestor who is willing to relinquish
How to Plan Your
The folder on the Low-Priced
generous current return for steady
Investment Program
Common Stock Series stresses the
long-term growth.
Stocks of the
For
investors
who are in a
"velocity" which stocks in this type
held
by
LOW-PRICED
category
provide.
"Low-Priced SHARES should continue to pro¬ quandry as to what to do next,
we recommend the new Keystone
Stocks are the fastest movers per¬ vide
greater-than-average market
centagewise. They characteristic¬ movement."
ally fluctuate more than the aver¬
Signal
age."
In the current issue of National

let (referred to recently in this
column) makes.a careful analysis
of the

Investment Company Reports

the

"Thus

booklet, "How To Plan Your In¬
vestment Program."
This book¬

Ideal

This group concludes:
"The
market
has
spoken

can

before there will be
enough steel, railroad equipment,
industrial machinery.
It may be
10

penetration by the Dow-Jones In¬
dustrial
and
Rail
Averages of

any

("black" as well as find, long-term under-valuation
"white"), while creating a fever¬
i.e., assurance of maintenance of
ish activity, does not mean that
earning power which is high in
the country is achieving either
relation
to
present
prices
of
balanced prosperity or a sane and
common
stocks.
It will be sev¬
sound

,,,•

Mansfield

markets

from

*4*.

interpretation by the New York
Advisory
Firm
of

Investment

objectives!"

Fundamental Stock

made

at $100 per share. Through stock dividends an
Investor who bought 100 original shares for $10,000 now has, as a
result of stock dividends and split-ups, 480 shares worth as of May
•31; 1946, $33.89 per share, or a total of $16,267;
During the period
|i& has held his stock, he has received cash distribution^ totalwig
$10,398—which is more than his^
In December, 1925,

Thursday, June 20, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

3358

CHICAGO

South LaSalle Street

LOS
2io West

ANGELES

Seventh Street

LVolume 163-

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4500

Keystone

6n Railroad Stock Shares;

dividual securities.

month-end

Co.—Current data folder for June

all

^special
price comparison on
of Group Securities,

classes

Selected

;

Portfolio

Revised

—

20,

1946.

Investments

Co.—

dated

jprospectus

Stocks

New Ycrk

May

Memorandum

showing

diversification of Selected Ameri¬
Shares

can

of May 31, 1946.

Lord, Abbett — Composite sum¬
mary folder giving data on Lord,
Abbett funds as of June 1; sup¬

plemental

information

folder

IJnion Trusteed Funds prospectus;
Current
investment
bulletin
on
Affiliated Fund comparing

market
performance with that of 20 in¬

Securities

National

Research

Corp.—Current information folder
for

June

National-sponsored

Funds; revised folder on National
Series. Current issue of In¬

Bond

vestment

Timing containing

list

convertible bonds and pre¬

ferred

stocks; memorandum show¬
ing portfolio changes in all Na¬
tional-sponsored ... Funds ./ during
May.

vised

Wellington Fund — Re¬
dated June 1,

prospectus

1946.

George Putnam Fund-

...

Current issue of Portfolio News.

these

they have

Keystone Custodian Funds....

waste

'been forced to close
or
curtail
(Continued from page 3347)
The plain fact is — and Chester their operations.
Bowles knows this just as well as
Retailers are also caught in this
anybody else — that if the price squeeze. If they are to stay in
ceilings were taken off, meat business, they must pay illegal
would sell in the open legitimate wholesale
prices, for a large per¬
market at much less than it is centage of their meat. The evi¬
Belling today in the blackmarkets. dence adduced is that more than

people are being defrauded.
are
being deceived. They

think they get meat at the ceiling

prices

Mr.

Bowles

talks

about.

What they are actually having to
do is to buy their meat in the

blackmarkets

the

fit to

see

meat

own

Senator

Hickenlooper

has

pointed out, with the force of
48,000 people Chester Bowles now
has under his control, if he would
devote

half

Wiping

out

much

the

energy

blackmarket

does

trying to bulldoze Con¬
gress, the American people would

J>e able to buy meat in the legiti¬
mate markets at fair

would

insure

prices which
continuing ade¬

quate supply for all.
You

why
the meat
empty, and why, if

are

you want meat, you have to know
gome bootlegger
before you can

buy it?

It is because of maladministra¬
tion by the OPA. Government
for

estimates

this

supply

1946, show
of

year

the

meat
pounds

150

per capita,
available to

consumers

and

20%

about

from

stores

add

wholly

ministering OPA, it is clear that
maintaining the fiction
"that the line is being held on
meat"
is
costing
$2,000,000,000
annually.

the cost of

much

ample
costing

than

evidence

the
it

largest

that

~ consumers

would
.

cost

In addition to this

cost, there is
the loss through the blackmarket
wastes of meat, hides, bones, offal
and grease worth many millions

loss.

consumer

The

must

con¬

Bowles

carefully

refrains

being compelled to eat meat

The whole situation is summed
up

absorb

blackmarketeers

Secretary of

Clinton
to

Agriculture,

Anderson

questions

from

response

the

Majority
leader Alben W. Barkley of the
Senate
in
hearings
before the
Senate
Banking
and
Currency
Committee on May 1, 1946.
Senator

Barkley

asked

this

else1 is

statements
head

all

that

come

to the sug¬
gestion finally that the way to
■

The

•

-Y

cure

this

is to take off all controls

whole

situation

and ceilings on the

theory that
meat might run up for 30 days
in price but it would level off,
that there would not be any
of this artificial situation.
I do
so

that

production %

should

be tolerated by Congress'
the American people.
;
-

•

Equitable Securities
To Open Dallas Branch

Secretary

of Agriculture
put the controls specified into
effect the first week in May. They
have

now
operated five weeks.
Last week the legitimate packers

DALLAS, Tex.—-Equitable Se^purities Corporation of Nashville,
will shortly open a large branch

processed less meat than they did
the week prior to
Secretary An¬

office in Dallas.

derson's

Jack S.

Garland,

testimony.
That
obvi¬
formerly / of
Nashville,
who
ously brings us to the "something headed the firm's
Birmingham.
else," and that "something else" Ala. off
ice from 1934 until he en¬
as
Secretary Anderson stated is tered- the
Army Air Forces, and
an abandonment of these controls.
who
has
been
with
Equitable
The Senate Banking and Cur¬ since
1931, will be in charge of
rency Committee of which Sena¬
the new office. Formal announcetor Taft and Senator

ment of

Hickenlooper

the

branch

shortly;.
Corp., of
take all price ceil¬ which
Brownlee
O.
Currey is
ings and controls off meat. This President, was established fifteen;
is squarely in line with
Secretary years ago, and has recently ac¬
Anderson's recommendation.
quired ownership of Farm and
are

members

has made

recom¬

Equitable

new

Securities

mendation to

The time has

Land and of Holland's

when Con¬

come

The

pot

ganda.

people
out of

roasts

Neither,

butter

Magazine*
large interest in Con*

tinental Trailways,

American

make

has

and

through

legislation.

meat

impediment
or

abandonment of these

controls."

gress must reassert itself

"These

American;
people. The only way to get it te
by maximum production and no
price fixing; program; that is an;

surely ought .to try something
else; the only other 'something

question:

out

can

trick

cannot

Brooke L.

propa¬

they

churn

charts.

Wyhkoop

Mr.

in his quest for power is
always ready to brand as greedy
anyone who disagrees with him.

Bowles

His

While,

terminal

leave,

Lt.

Col. Brooke L. Wynkoop has been

purpose, however, is to
promoted to the rank of Colonel.
the profits out of private
On May I hp; became associated
enterprise
so
that
government
answer
or
not.
I am seeking
can take over, that he may achieve With
Fahnestbclj: & Co., 65 Broad¬
the answer."
the power he apparently craves.
way, New York City, members of
In reply, Secretary of Agricul¬
We are perfectly willing to rest the '
New" York: Exchange
and
ture Anderson said: I quote—
our case with the
housewife, the other
leading Exchanges?
:
\
"I would say that about as far: farmer, and the laborer of Amer¬
as I have been able to persuade
ica.
I ask of each of these groups,
myself to go is to regard this can we, who have been raised to Lewisohn to Admit
not

know

whether

that

the

one

squeeze

Jacquin

and bread

present .period,

expect meat

trying

tables—who have accepted as our
free heritage a living standard

this

see

when we are
reestablish slaughter

controls

of dollars annually. The farmer or

the

human

for

which endangers their health.

just discussed, and the cost of ad¬

unfit

are

$750,000,000 paid in meat
subsidies,
which
Senator
Taft

This

meat

children of this country who

the

meat

large

sumption.

000,000 the consumers are now
paying in excess of ceiling prices
to

blackmarket

on we are

they have got to buy in complhance, and if we are not able to
get food for the American peo¬
ple at decent prices, then we

are

instances diseased meat.

the $1,250,-

with the ceilings lifted.

wonder

counters

you

and

percentage

When

and

selling "un¬
graded, contaminated, and in some

charge them.
As

retail

the

coast, and from border to
border, are forced to sell meat
above
ceiling prices and make
overcharges at the rate of $1,250,000,000 annually.

the

prices

Jblackmarket racketeers

83%

coast to

not able"} admit production Is in
high gear
and in which the
supply exceed®
decent channels, if we are not the demand.
;
able to persuade people that
We need food for the

dangers
to the American people involved.
Many blackmarket
slaughterers
are killing and dressing livestock
in uninspected plants, in barns,
sheds and fields, lacking adequate
refrigeration
or
other
sanitary
equipment. They are grading their

•"

The

costs

putting

to direct these cattle back into

grave

are

the

They

these

there

from any comment on the dangers
to the fathers, the mothers and

Prosperity in Handcuffs

now

no way

addition

wastes,

Mr.

by-products because
to process them.

3359

about the last effort

if it will work.

with

slaughter controls and with the
increased

must

force 'that

OPA

second to none—live
and

propaganda?
only commodities

upon

our

statistics

These are the
on which I will

Lewisohn & Co., 61 Broadway,

New York City, members of the
New
admit

York
Max

nership

Stock

Exchange, will

Jacquin, Jr. to part¬
July 1.

••

amount

since 1911,

than

the

1933-1939 average.
On

April 5, 1946, the Secretary

This announcement is not

ojjer of securities for sale

or a

Of Agriculture said, and I quote:
"There need be

meat
is

supply

all

June 18,1946;

the

need."

May

700,000 Shares

3, 1946, said and I quote:
"I fell that
:

I know that with

80,000,000 cattle in
States, there

offer to buy securities*

scarcity of

Speaker Sam Rayburn

The cattle population

sufficient

meat

solicitation of

the United
number and

production that is sufficient."
Why then
the

In
ers

and

can we

first

♦

not buy meat?

place, the produc¬

feeders

cattle

cannot

produce them and feed them

un¬

increased costs and sell
them within the price ceilings es¬
tablished by the OPA.
der

the

Think

with

ten

Par Value $2.50 per

million

cattle in the United States

this

it,

than the average tenperiod before the war, the
producers, the feeders, and the
processors of meat * cannot put
year

year

that meat

the American family

Price $16,875 per share

table through the legitimate mar¬

kets

price which will give
them back their costs.
a

The

proof of this is that more
25,000v black
market
slaughterers have moved in and
taken over the business that 1,500

Copies oj ihe prospectus

than

.legitimate packers

may

be obtained from the undersigned (one of the
persons to whom 'the undersigned

underwriters named therein) only by
may

legally ojjer.these securities-under applicable securities laws.

processors

klid before the war.

Now, let's consider the proces¬

sors:

No one can

deny that

country¬

wide, scandalous, blackmarket in
Wheat and livestock does'.;exist

Dillpn>Real &Covins,

ftoday, an&that Government war*
ftime controls, that have been, im*
jposed upon the meat and slaught¬
ering industries over a four-year
beriod

have

an e a sure
WsiplriYUlT'lrpt

been

large

responsible lor that
" *'•

Law-abiding slaughterers have

4^4 ml*

«'i'i tiU «'* ix*tinn v'tn «-f

t*«;

n**.t?*•?it evt-

•

hMm

s'9

irjrji,

* it--.

•

■*

*■

sr,.«

•J

(

rs-

; »'

* «

i 'h ■

j»

.1.

THE COMMERCIAL & FINANCIAL CHRONICLE

3360

vehicle was

1945; in the case of

1943

and

This Week—Insurance

D;:

Best's "Insurance

1941 to

'alet fire,

motor

tornsuQ
:

News-Fire & Casualty

(Continued from page 3346)
merely signing orders and

shown for 1941

figures for 35 companies are

1941

Travelers.

American Automobile

companies
amounted to and "Employer's Fire wrote ap¬
proximately 50% more automo¬
$288,731,000; in 1942, $312,365,000;
bile business in 1945 than in 1941.
1943, $334,684,000; 1944, $356,203,On the other hand, Home reports
000, and 1945, $383,611,000.
The
these

represents an
1941 of $94,880,000,

last figure
over

increase
equiva¬

32.9%.

lent to
"

The

which showed
fire business over

company

least growth of
the period was

North River, which

terrific decline from $26,082,000

$4,767,000 in 1945.
experience in motorvehicle writings over the period
has been erratic. In 1941 the aver¬
age loss ratio for the 35 compa¬
nies was 59.0%; the ratio drop¬
in 1941 to only

Loss

$4,825,000 in 1941 and $4,ped to 44.4% in 1942 and 41.2%
906,000 in 1945, only 1.6% more.
in 1943; in 1944 it rose to 59.4%
Swiss Reinsurance, on the other
and in 1945, to 69.0%.

Wrote

wrote $10,586,000 in 1945,
compared with $5,832,000 in 1941,
an increase of 81.5 %.
Other com¬

hand,

expansion of fire

panies whose

substantially
greater than the group increase
of 32.9% were: Aetna, American,
Franklin, Glens Falls, Home and
Writings

were

business
in¬
consistently and substan¬

Inland
creased

marine

tially, year by year, from 1941 to
1945.
Here again, 35 companies

reported on.
In 1941, total
premiums written in this class
amounted to $42,229,000 and in
are

price and quality re¬
quirements of the consumer.
2. That effective promotion and
advertising will again be neces¬
sary
to sell goods in a highly
competitive market.
3. That costs, particularly sell¬
ing costs, will increase sharply as
the physical volume of goods in¬
have

will

Retailers

creases.

study every element of their store
layout, merchandise handling and
selling methods, if they are to
handle the large unit volume at

Hampshire. At the other end

ibt the scale, the

tio

North British.

The trend in loss experience
the five years has not been

1941

was

47.5%, 46.3%

1942,1 53.3% in 1943, 52.4% in 1944
and

52.8% in 1945.

over

Extended coverage is an inter¬
the heavy na¬
tion-wide rise in fire losses dur¬ esting class of underwriting that
ing the war. In 1941 the average has shown steady and substantial
loss ratio of the 35 companies was growth, though as yet it has not
43.5%; it dropped to 42.1% in reached very large volume. Again
1942, but rose to 49.7% in 1943, figure for 35 companies are given,
-51.5% in 1944 and 52.8% in 1945. and their volume totaled $24,636,000 in 1941; in 1942 the volume
V/In the motor-vehicle group, 35
was $32,274,000, in 1943 it totaled
companies also are reported on;
the names, though, are not iden¬ $37,374,000, in 1944 it jumped to
tical in the two groups, neverthe¬ $45,438,000 and in 1945 it reached
less 21 names are common to both. $54,344,000, or 120% above 1941
This class of
The trend of premium business in premium volume.
this class has been the reverse of business has been generally prof¬
itable throughout the period, ex¬
that in fire, declining from $178,468,000 in 1941, to $88,275,000 in cept-in 1944, when the average
In other
11942, and $79,194,000 in 1943. loss ratio was 65.5%.
Since 1945, however, business has years the ratio was comfortably
below
50%,
as
follows:
1941,
turned moderately upward, reach¬
37.3%; 1942, 39.0%; 1943, 47.7%
ing $83,945,000 in 1944 and $99,-

favorable, due to

670,000 in 1945.

The latter figure

ps 44% below the 1941 volume.
Twenty-five
companies report
lower
volume in 1945 than in
1941, while ten companies report
greater volume.
The latter are:
Allstate Fire, American Automo¬

Em¬
Guaranty,

bile, Automobile Insurance,

ployers' Fire, Fidelity &

Earnings Comparison

Fire & Casualty

Insurance Stocks
1945
Circular

1945, 44.2%.

covered
1941

peak year of the current
cycle for both these classes.

Bell

new merchan¬
dise—better styled, Of better qual¬

Teletype—NY 1-1248-49
Trading Department)

each group

were

Insurance & Bank Stocks
—

—

Sold

—

Quoted

REVIEWED

—

COMPARED

Special Bulletin and Booklet Service to Dealers & Brokers
Trading daily 7 a. m. to 5 p. m. (P. C. T.)

Inquiries invited. Orders solicited.

J-

BUTLER-HUFF
•"

CO.

CALIFORNIA

210 West 7th St., Los Angeles
PRIVATE
New
•

•

York

ft—•;

Chicago

ft—

WIRES

San Francisco
—
It. A. 280

•-''ftftyft-Zft TELETYPE L. A. 279ft:

factor

involves

the

—

Seattle

would

in¬

billion, which can be added to ex¬
penditures. Savings from current
income can easily drop from $35
ment and its merchandising per¬
billions last year to $18 or $20
sonnel. Buyers and merchandisers
billions this year, giving an addi¬
as
a
group are not analytically tional
$15 to $17 billions that can
minded or economically trained.
be added to expenditures.
Allow¬
If they were they probably would
ance
of
several
billion
dollars
be very poor merchandise people.
must also be made for inventory*
They are a group of merchandise- increases and net exports.
All
tween

personal

relationship

department store

be¬

manage¬

minded

people, who think mainly told, this implies that an increase
in selling goods rather
of at least $25 billions in the value
than of buying it, who are alert
of consumers'
goods production
to competition at their own level,
will be necessary before the higli
and who take great pride in the
rate of curernt savings is reduced
sales performance of their
own to a more normal level.
in

terms

of its

morale

entire merchandis¬

strike in 1946.

Sudden

Gradual Transition

point out
that the supply of some items will
catch up with demand much ear¬
lier than others. Many people are
hopeful that manufacturers will
begin to restore quality as soon as
this occurs. Many people "believe
that retailers,
in view of their
present heavy commitment posi¬
tion, will become more selective
and conservative in their buying.
These

people

transition
that

one

kets

shock
and

to
to

accustomed

Retail

management, I believe, to
reading about reconversion dif¬
seriously consider the pos¬
ficulties, shortages of parts, and
sibility that a buyers' strike, such strikes in basic industries, that it
as
occurred in 1920, will again is
easy to believe that production
climax the present rising trend of
has been at a

practical standstill
months ago.

since V-J Day, ten

important

that way,

not

know

that

each

you

are

to accept

first

these

the

clients at every

high

There

are

opportunity.
signs already

many

made
in

A third factor is ithe

fol¬ wholesale

market dis¬

distribution

level,

particularly

the market.
2. In

the

is the relative

inexperience
of
many
buyers.
There is a steady mortality rate in

up,

manufacturing

profession, and retailers dur¬
ing the war years had to recruit
new buyers and to train them in
wartime sellers' markets. Many of
the buyers that are coming into
today's
markets
are
wartime
products, who have never done
anything but sign orders. This is
not their fault; but the fact re¬
mains that they have simply had
no
experience with periods in
which
the buyer could bargain
With the seller; in which the buy¬

not

baniTof
NEW SOUTH WALES
(ESTABLISHED 1817)

Paid-Up Capital

.£8,780,000

Reserve Fund
6,150,000
.Reserve Liability of Prop.- 8,780,000

£23,710,000

30th
——£223,163,622

Aggregate Assets
Sept., 1945
—

departments,

few

level

Australia and New Zealand

soft lines, there has been

ity goods.

advance

the dollar value of goods at

the

THOMAS BAKER HEFFER,
General

increasing resistance to poor qual¬

wartime

the

for

prices, which has now speeded

that the

any

Supplies

must

Buyers' Strike Not Likely in 1946

it works out

repetition of 1920-1921.

tortion

This is far frorti being true.'The
a time will com¬
problems, therefore, is to consider
readjustment, that the possibility of a consumer buy¬ unit volume of production is Te^
ported at 60 to 65% above the
the wholesale mar¬
ing strike and when it may occur.
prewar level. If allowance is also
retail sales will be

I have learned

The

Volume

We have become

watching very carefully the con¬
faith. sumers' reaction. It is one of the
Many current developments point things we discuss with our own
a

high price and

what will its reaction be?.

ary;

dicate some of the difficulties.

favorable prospects on mere
to

the

sees

own

hope

but

quality of much of the goods
that will be displayed on retailers
shelves next January and Febru¬

that it won't be.

hope
that the prices and production.
a gradual one,
One * of , the * most

minor.
I

points I mention here do not prove
But they do in¬

when
low

item at

plete its
the

will

policies slowly
and selectively,
period of 4six to 12 months.
Pious hopes that the transition
will be a gradual one do not prove
that it will be. And of course, the

over a

It may seem banal to

A fourth factor

Bought

final

tricate

In most cases people
will pay a higher price for better
quality merchandise as it becomes
available. Recently, for the first
The year of highest losses for actual increase in supply that has time, we have received scattered
reports of active price resistance
fire
insurance
and
for
motor already occurred.

YORK 5, N. Y.

ANAYLZED

it.

Considering 1946 as a whole it
now as if income payments
be about the same as in
1945. Personal income taxes will
show a
decrease
of around $3

looks

But
one
ing staff.
question
should be
ity, at a lower price.
On a practical basis, therefore, raised:
That is what I mean by tran¬ department
store
management
When the public receives the
sition period — a sudden, major cannot
immediately reverse its bills from its Christmas 1946
buy¬
change in existing price—quality liberal buying policies of the past
ing spree; when it faces the in¬
relations.
few years. It can only change its
come tax deadline next March 15;

Fire, 48.3%; motor vehicle, textile apparel linfes. These dis¬
54.1%; inland marine, 50.9%; ex¬ tortions involve mill integrations
tended coverage, 48.5% and tor¬ and various sorts of tie-ins, which
nado, 59.1%.
conceal from many buyers the

BArclay 7-3500

(L. A. Gibbs, Manager

explanation for this, which also
throws light on future' prospects.

livery when he wanted to receive
A

buyers' strike, I believe we
position
of the public in relation to the in¬
creasing value of supplies that are
becoming available.
Since V-JT
Day, income payments have de¬
clined slightly below last year's
levels. Sales, however, have con¬
tinued to rise. There is a logical

must look at the financial

profit in a competitive market.
departments.
Such an increase is not in sight
A
large supply of consumers
Theoretically, it sounds all right
before the end of this year.
But
goods is being
produced right to say that department store man¬
now.
The supply will
be still agement, when it becomes dis¬ every price advance of 10% will
add
almost
$10 billions to the
greater by the ^nd of this year.
turbed about the level of its in¬
value of suplies.
Compound one
The time is doming when the
ventories, or the volume of its
or two such increases with a gain
public, however much it wants outstanding commitments, or the
of 10% to 20% in unit volume in
this supply, will not be able to ab¬ quality of the merchandise the
the last half of this year, and you
sorb it at the current price level. store has been receiving, can put
will
have
a
tremendous dollar
The time is coming when many on the brakes. As a practical mat¬
volume of merchandise.
retailers will be liquidating heavy
ter, however, if it puts on the
In my opinion, there is not too
stocks of undesirable merchandise, brakes too hard it may do more
at the same time that they are harm than good: it may ruin the much risk of a general buyers?

lows:

New York Stock Exchange

Telephone:

prove

the

public is taking a more
level of current demands.
This
127,000, equivalent to 22.2% of the
critical attitude than it did during
1941 total.
Loss experience has puts pressure on retailers to as¬
the war years. Its reaction can be
not been favorable since 1941, in sure themselves of an adequate
summarized as follows:
which year the average loss ratio merchandise supply.
1. In hard lines, the public is
for the 35 companies was 44.6%.
The second factor is the strong
In 1942 the ratio rose to 55.9%, position of sellers. It also involves not too anxious to buy appliances
Many con¬
in 1943 it was 62.1%, in 1944 it the anticipation of higher prices of unknown makes.
jumped to 71.9% and in 1945 it and the general willingness to sumers are waiting for the wellknown brands to come back on
declined to 65.4%.
accumulate inventories.

nies

Members

the total volume of 35 com¬

panies amounted to $14,028,000; it
dropped to $13,068,000 in 1942;
$12,677,000 in 1943; $12,595,000 in
1944 and $11,901,000 in 1945.
The
shrinkage over the period is $3,-

nual

Laird. Bissell & Meeds
120 BROADWAY, NEW

underwriting
is "tornado insurance." In

The fifth class of

Five-year averages of the an¬
averages of the 35 compa¬

Request

and

losses.
may

sible

subsequent years as follows: 1942,
following compa¬ $48,734,000; 1943, $55,808,000; 1944,
nies show an expansion substan¬ $66,444,000; 1945, $75,433,000. The
tially lower
than 32.9%, viz.: last figure represents an increase
Automobile,
Fire
Association, of approximately 78.5% over the
Great
American,
Niagara and 1941 total. The average loss ra¬ compelled to buy

•New

this

and
It is

Retailing
stop

written

that

high

Economic Tendencies

'(Pearl Harbor year) 1942. 1943€>
— accepting allotments. They will
and 1944
(war years), and ; for Firemen's, General of America,
Great American, - St.
Paul and have to select merchandise to
,1945 (victory year). Total net fire
meet the
premiums

running

vehicle

motor

{

the fire group,

Edition" for June 1946,

by classes from
classes reported
vehicle, inland marine, extended coverage, and

some

still

are

Stocks

interesting tabulations on underwriting
1345, by stock fire insurance companies.
The

Carries

believed

tornado, however, it would
that the loss trend may
have already turned downward,
for their peak loss-ratios occurred

DEUSENi

VAN

By
,

also

appear

Bank and Insurance Stocks
*4

1946

Fire losses in

1944.

and

inland marine, extended coverage

Thursday, June 20, 1946

Head Office:

Manager

George Street, SYDNEY

LONDON OFFICES:
29 Threadneedle
47

Street, E. C. 2

Berkeley Square, W. 1

Agency arrangements with Bank*
throughout the U. S. A.

notably

children's wear.

NATIONAL BANK

remains, however, that
strikes and work stop-:
pages, the public has continued to
buy at record rate.
Enough im¬
portant items are still sufficiently
scarce so that the public can be
frightened into buying excessively
from time to time.
Belief that
The fact

despite

prices

will

couraged

some

higher

has

hoarding.

of INDIA, LIMITED
Bankers

High

high level of current savings, have
er
selected the merchandise he all been simulating forces.
In attempting to time a pos¬
wanted and ordered it for de¬

the Government ia

: '

Head

Office:

26, Bishopsgate,
London, E. C. ft

Branches In India,

Burma, Ceylon, Kenya
Colony and Aden and Zanzibar

en¬

incomes, the existence of accumu¬
lated savings, the relatively low
level of instalment debt, and the

Kenya Colony and Uganda

Subscribed Capital—£4,000,000
Paid-Up Capital
£2,000,000
Reserve Fund
..£2,200,000
Thk

Bank conducts every description of
banking and exchange business
"--ft-

Trusteeships and Executorships
jalso undertaken

Volume 163

Number 4500

far out of line with

income.

high since

current

consumer.

some

production

the

war

from

vances

...

Not all of this merchandise has
filtered through as rapidly as it
should to the retailer and the jultimate

THE COMMERCIAL & FINANCIAL CHRONICLE

ended;

ad¬ of

price

will be

now on

rapid until the crest of the
ent cycle is reached.

pres¬

when higher prices are to be ex¬
pected.
Actual
or
prospective

Government

rent

again, it is not the

trend

pects that

least

15%.

The

but

the

future

cur¬

regula¬
regula¬

mark, which unfortunately
be descriptive of many of us.
"We like

pros¬

are

what

t<j continue to believe

have been accustomed to

may

true.-»
The result is
that most of our so-called reason¬
as

ing consists in finding arguments
I'm not so sure that this is en¬ for going on believing as we al¬
tirely a bad thing. Retail wage ready do/' (James Harvey Robinsscales were so low before the war sen) •
• •••-;•.- •
;
An antidote to mental stagna¬
that the industry was
losing out
in
its competition
for talented tion of this sort, it seems to me,
young
people
who
wanted
to can be found in a good, rousing
build a future. That is a bad con¬ difference of opinion.
>

actual advance in price including

shipments
have
lagged behind black market prices and quality
production, a typical symptom changes that don't appear in offi¬

thick cushion of security.

important.
Not for a long
Between
now
and
the
first
time, if ever, will
cases
quarter of next year, the advance you be able to hire help at the
items in official price indexes is likely wages you paid before the war.

of the finished
has been delayed
by the lack of
one or two
parts. In some cases

changes

you a

But here

3361

cial

indexes,

will

probably^ be

closer to 15 to 25%.
An

excess

purchases

over

tions, particularly price
sales will increase profits during dition for any industry to be in,
The opinions I have expressed
tions, „ have
caused
temporary the remainder of the year. '
Nevertheless, wages high enough today are hot; I asshre you, mere¬
"
holding back of goods. However,
to
attract high-grade personnel
ly what I "have become accus¬
However, such a policy, while
I believe one
.

point should be

em¬

phasized.

it will turn the rising price level
to the advantage of the individual

Despite reconversion problems
businessman, will
and
strikes,
retail
inventories tribute to the
generally have managed to keep
with

pace

record level of sales

naturally

con¬

that

pressure

forcing prices upward.

create

lem.

entirely

The

new cost

test

prob¬

will

come

tomed

during the

transition period.
1. Mark downs will be

heavy.

2. The average sale will
Moreover, it cannot be applied
drop
uniformly
to
all
commodities. sharply, though remaining above
Some prices will begin to decline prewar levels.
least $1 billion in the value of all
well before the peak for "aver¬
3.
Your
business inventories.
This seems
higher-salaried mer¬
been
to me to be a remarkable per¬ age" wholesale prices has
chandising force will have to
reached.
formance during a ten-month pe¬
handle a much larger physical
riod in which industry has, ac¬
Finally, such a policy is frankly volume of goods if your dollar
It accepts a
small volume is .to be held at a reason¬
cording to the newspapers, been speculative.
risk
now
in
order
to
avoid
a
practically crippled by strikes and
ably high level.

during the first part of this year.
There has been an increase of at

reconversion

greater risk later.

difficulties.

Unless it is

ac¬

companied by something more, or
Invisible Supply Changes

if it

ability to sell

is continued too

goods.

violated and supply increases con¬
cealed.
It is quite
your

possible that some of
buyers have had their allot¬

seems

on-life,
margins

far

are

that your lease-

The time has

costs and profit

concerned, is

rather

short term affair.

For this year at
for

least, possibly

part of next year, your high
average sale will cover up the ad¬

ments

sum

practical discussions with
clients

own

down, they

and

are

friends.

and

boom will
2.

chance

that

least

$12.50

of
,

than

1,000

automobil^

and.of bicycle electric generators
and lamps.
Trade names under

which products are sold are: Air"
;
/if jih
financing|J;
t

the

will be used

the consumer's attitude.

new

part to discharge

loans

and

chase

notes

and

machinery pur¬
purchase ad-"
machinery and ' equip-J

ditional

ment.

Drastic

changes in pricequality relations will occur during
the transitions period.,

The balance, amounting to
approximately $759,694, is to be
used for additional working capi¬

will

continue

intense.

Associated

with

Cruttenden

Co. in the underwriting are New-

hard, Cook & Co., Julien Collins
& Co., A. G. Edward & Sons and;
Bateman, Eichler & Co."
«#rf*■
.

Melville Sachs Dead
Melville

Sachs,

partner

Edward de Cernea Deads* f

Edward

Sachs & Toplitt, New York brok¬
erage

firm, died at Memorial Hos¬

pital at the age of forty-six.

Sachs
New
1929.

became
York

member

Stock

was

floor

Mr.
the

Exchange

member

for

Cernea,

Vice-President

Trust

Company

head of its
in

New

short

Neuhut, Plohn & Co.

until it

dissolved in 1937.

recall

that, I become
3mbarassed if( I find myself talk¬
ing steadily (Jor more than 20 min¬

five

was

years

For

traded' independ¬

1920

and

York

Assistant

Toplitt.

ap$'|

department)

Mr.

joined the Marine Trust

New

Marine I

Buffalo,

City, died after" US

illness.

ently and then founded Sachs &
re¬

municipal

York

Assistant!

the

was

Cern&af

Company|
to!

transferred

1928.

became

January.

Vice

President

;

announcement

appears as a matter

of record only.

The extent of

some

increases

of these

con¬

HUDSON MOTOR CAR

partially
measured by the number of new
can

mnufaeturers

apparel

some

COMMON STOCK

fields:
There

190

are

new

manufac¬

(Without Par Value)

turers making corsets, girdles and

braissieres;
The

number

manufacturers

making women's blouses for the
New York market has grown from
55 to 400. These illustrations are
extreme

but
significant.
They
repeated, to a greater or lesser
degree, all down the line.
are

If the total supply of fabrics for
these lines has decreased, where
!

are

these

new

taining the

•

Subscription Warrants for these shares

several Underwriters have

manufacturers ob¬

necessary

working

were

Company and such Subscription Warrants

issued

were

the holders of the Common Stock of th§

exercised for the purchase of 220,081 shares. The

purchased from the Company, and have soldt the remaining 6,892 shares*

ma¬
11

terials?
It is

plain that the current flow
of supplies, like a deep river ap¬
proaching its outlet to the sea, is
spreading out thinly over an in¬
creasing number of resources. The

E.
HUTTON & CO.

fact that the flow is shallow when
measured
conceal

the

pressing

one
point tends to
large volume that is

forward

from

primary

BLYTH & CO., INC.

GOLDMAN,

sources.

The

Trend of

Prices

KIDDER,

PEAB

SMITH, BARNEY & CO.

j, No one at this time, who must
prepare remarks to be delivered
24

UNION i

hours

or more later, dares be
specific about the future of
price
control
legislation..
One
thing, however, should be plain:
regardless of details, price control

V:'* -r

•

too

has become

June 14,1946

•

rapidly less effective

»•<«

.«

last;

226,973 Shares*

cealed

;

tal.
_

sales

Dollar

high for several years after this
transition, but competition will be

up.

cut by old time sources of
supply, who have always been
vance
in
a
multitude
of
cost
dependable and honest in their
utes.
factors. Elimination of the excessdealings with you in the past. This
But I recall also another
profits tax, of course, gives most
may
imply
absolutely
nothing
about the total supply, going in
one way or another to your com¬
petitors and to the consumer.
The manufacturer you buy from
All of these securities have been sold. This
may have been obtaining his fin¬
ished goods from an independent
converter, who has lost out be¬
NEW ISSUE
L?
cause he previously
bought gray
goods from a mill that now does
its own finishing.
You are not
getting your share of the increase,
hot because it isn't there, but be¬
cause some one else is getting it.

replacement parts ^n4 access6rifea

Proceeds

the firm of
I

...

share.

per

hours."

When

company's principal bust
is the manufacture and sale

and Make-A-Lite.

strike will climax the present ad¬

tex, Pee Cee, Lubro-Life, Master

good
buying

consumer

f ,.•••.

;?•*:

stock, $25 par, and 40,000 :shares
of common stock, $4 par, of Chefford Master Manufacturing
Co.,
Inc*,of Fairfield, 111. The' prefer¬
red is offered at- par and the comk
mon is priced at $10.50 per share.
Each share of preferred is con-.

ness

inventory replacement
probably come in 1947

There

i;vA >.

■

The

our

«-j y+'y

-cumulative- convertible preferred;

1. The peak of the present price

cycle

Cruttenden & Co.; beaded an in¬
vestment banking group which on
-Jape 17 ibfferie#
shares of,

mon

Boiled

simply this:

Crbttenden & Go.

Vertible into two shares of comfat the basic conversion prfce

joint efforts
working within my own
organization. And they have had
the test of being battered around
in

Stock Offered by

bank

Holmes, Jr., who
said—"Any two Philosophers can
tell each other all they know in
two

was

come

true."^ They

3. The first quarter of next year
will provide an important test of

long, profits believe,
however, that you can
Some of the increases in the made now will be offset by losses learn
a
profitable lesson
from
incurred later. Consequently: (a)
supply
of
textile' and
manufacturing
apparel
industry in
the
Retailers should plan to increase
items have been concealed from
efficient handling of goods.
inventory turnover and reduce
many buyers by vertical integra¬
I wonder whether any of
your
the length of commitments within
tions and various tie-in arrange¬
cost studies have bee nable to iso¬
the next six months, (b) Retailers
ments between mills and cutters.
late the actual amounts you spend
should not over-estimate postwar
in
The mechanics of price control,
moving merchandise around,
demand on the basis of current
operating
in
scarcity
markets, demand. The average consumer is from one place to another, in your
have made it profitable for mills
warehouses and stores, from the
paying a much higher price for
to finish their own
gray
gobds soft-line items than he will be time it comes in until the time it
rather than to sell it to the inde¬
able to pay when appliances, auto¬ goes out to the ultimate consumer.
pendent
converter.
There
has mobiles and new
There is one spot, I feel certain,
homes are freely
been a further profit in having
where you could save a great deal.
available.
the finished goods manufactured
Into wearing apparel, where suit¬
Conclusions
The Trend of Costs
able arrangements could be made.
As a result, distribution has been

outcome

of those

vance.

Now, I have great respect for
your

the

are

Chefford Master

-m

ini."*-

Thursday, June 20, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

creases

The Present
(Continued from page 3349)
Man-made
tuted

for

Demand.
fronted

the

laws

law

Industry
with

Government

substi¬

were

Supply and
then con¬

was

situation

the

assumed

where
direc¬

Buying SpIurge Cannot Last

unfortunately, in many cases, been
delinquent and dictatorial.
Fundamentally,
under" the
American plan of the free com¬
petitive markets, price control has,
no permanent place in our peace¬
time system of Operation. It can
only breed inefficiency, unfairmess,
and disregard of law and

conies

into

balance

with

demand.

When

production

semblance

restores

balance

between

supply and demand, and on arti¬
cles not important to the cost of
establishing wages and prices on
living or critical for reconversion
"Which the life blood of business
and expansion of civilian produc¬
order.
depends.
tion, then a firm and definite
At the same time, the immediate policy of de-control should be im¬
OPA Delinquent and Dictatorial
elimination of price control on mediately adopted.
v
As a result, there has. been
•commodities essential to our basic
Under the American system of
tion of business

the

extent

serious criticism of the Office of
Price Administration. Admittedly,
that Office rendered
ble
the

very valua¬

service

to the Nation during
War, but, with Reconversion

standard

living

can

prove

hazardous.

I, therefore, take the
am not at variance
with Mr. Chester Bowles' repeated

position, and I
statement

that

Government

our

free economy,

industry is not ex¬
pected to, and cannot, operate
without a reasonable profit. With¬
out embracing that fundamental
truth, any recovery program is

coming far in advance of expecta¬
tions, their policy of not adjusting
or releasing prices to meet the en¬

nate the last vestige of

re¬

couraged

strictions in those industries when

the

wages

has,

promptly

elimi¬

price

impossible.

The

present

base

prices and restrictions on lumber,
is there any wonder this, is one of
our most virrulent Black Markets?

with this particular in¬
political and profes¬
the depression of 1921. I ask: Is sional partisans are asking that a
that a fair basis of comparison if $600,000,000 subsidy on building
industry is to employ, operate, materials be foisted on American,
was

and produce?

In their considera¬

tion of appeals for price increases
the OPA should adopt
a
more

liberal formula than that

be¬

now

ing generally used.

have been forced to abandon pro¬
duction of certain goods in strong

public
41%

demand
sell

and

one

than

articles

below cost because of present pre¬

vailing ceiling prices.
Cases of

Shut

Downs Because

OPA

Several

tending

weeks

cope

consistency,

taxpayers.
I found many

small textile conreporting inability to se¬

vertion

with which to produce
needed in our civilian
life
because
larger
producers
seeking to secure yarn for their
own
production, had bought or
merged with the little man's for¬
mer sources of supply.
Latest re-ports indicate that almost two-?
thirds of our production of rayonand cotton are now being con-,
verted by producing mills instead,
of being sold to established con¬
cure

yarn

verters.

when

ago,

at¬

forum meeting of

an open

items badly

A recent survey showed 60% of
the companies from coast to coas.

sidering applications for price in-

advance

move

sub-normal

1931 to 1934, steel
the lowest since

years

production

period used by the OPA in con¬

should

four

1939, in one of which, the
show; with the exception

records

the supply of any particular com¬

modity

the

are

of 1936 to

Lithographers,
service

purchasing
agents,
representing
many responsible industries, I en¬

tions,

countered

any

offer to sell, nor a solicitation of offers to

because

repeated

instances
mills, manufactur¬
ing goods essential to the every¬
day walks of life, had been shut
where

buyt

of these shares. The offering is made only by the Prospectus.

textile

down

This announcement is neither

for

weeks

because

could not afford to take

New Issue

basis

with cotton at

rolled steel. The former
able

within

because it

Marathon Corporation

item

was

the

ceiling

two

three

months

mills

while

prevailing
the
cold

rolled steel, not being a profitable
item to the mills, was schedulec

Common Stock

eight months' delivery because

the mills fou id it necessary to
per

share)

run

larger proportion of the profit¬

able

item

balance

profitable.

off

the

un¬

This necessitated,

the part of that manufacturer,

the

use

Price $37

per

of uneconomical substitutes at

increased rrianufacturing and pro¬
duction cost to balance production

and turn out

Utility
meet

The

Prospectus

be obtained in

other dealers

may

any

State in which this

an¬

for

want

these,
and

Lee Higginson Corporation

Smith, Barney & Co,

Blyth & Co., Inc.

you

cast

curtailed schedule,

white

cores.

for

pat¬

Without

cannot have cast iron
iron
makes soil
pipe,

for

ranges,
biles.
Industrial

Merrill Lynch, Pierce, Fenner & Beane

pine

radiators, and bath tubs, for low
cost homes,-as well as machinery

The Wisconsin Company

supply

the

mills

formerly

sup-?

food

Retail

their

facture

chains

now

line

own

manu¬

food

products.
Policy Injures Small Business
This trend toward absorption by

will

integration

effect

mental
U.

have a funda¬
the future of

upon

industry.
It will eliminatesmall, independent mer¬
chants
and
manufacturers, and
many

the

make

newcomer's

task

difficult.

Responsibility for this trend
only

attributed

trucks,

automo¬

and

shortages and price control.
We

read

and

hear

much

about

the

protective hand of our Gov¬
ernment fostering and stimulating
small

industries,

same

time,

while,

the
hand,
through control and price ceilings,
exerts

that

strangle

same

hold

those

little industries

same

end,

can

tion

which, in the
only spell the extermina-i
one

monopoly

for

What America needs is produc¬
tion—swift,
unrestricted,
mass
production and production is only
possible through a common-sense,
unselfish, realistic, approach to
this problem of reconversion.

Thousands of letters to Senators
and

expansion

programs

Congressmen, prompted by
propaganda, are pour¬

ing into Washington, pleading fo£
retention of price control and with,

during the war, con¬
the hope of keeping down the cost
a shortage of build¬
ing material, lumber, brick, and of living. The writters of those
plumbing
fixtures.
California's letters remind us of the prover¬
Senator Knowland
predicts this bial ostrich with his head in the
year's expert allocation of lumber sand, and it is difficult to believe
will aggregate one billion feet. In that they are ignorant of the fact
that when production is restricted,
1945 we exported 427 million feet
of
strikes
or
because
sufficient for 50.000 homes. Today, because
we
export lumber to 23 foreign prices are unprofitable, due to
our misleading wage control for¬
countries, while Knowland ins'sts
Germany's forest resources alone mula, there will continue to be
could supply Europe's immed'ate shortages in the face of present
construction needs and the Philip¬ day demands. No doubt, their let-,
pines the emergency needs fo all ters would have proven more ef¬
Pacific areas. With present ceiling fective if directed to those fundafronted with

This advertisement appears of record only and is not, and is under no circumstances
to be construed to be an
offering of this Common Stock for sale or a solicitation
of an offer to buy any of such Stock. The

offering is made only by the Prospectus.

NEW ISSUE

100,000 Shares

EQUITABLE
OFFICE BUILDING

Common Stock
($1 Par Value)

New Common Stock
i

Price $11 per share

Van

may

WHEN ISSUED

Bought—Sold—Quoted

be obtained from the undersigned.

STERLING, GRACE & CO.

Alstyne, Noel & Co.

Members
50

June 14, 1946.

the'

hysterical

retarded

Union Securities Corporation

Juno 19,1946

Copies of the Prospectus

can

material

other.

copper.

terns and flour for

indus¬

expansion, for
transformers,
motors,

Foundries

lawfully offer these securities in such State.

unable

civilian

lead, and

from only such of the undersigned and

comoanies,

and

want
may

finished product.

urgent demands for

trial

nouncement is circulated

able

reputa¬

plying them have been absorbed'
by larger and more powerful pub¬
lications, even to the extent of
acquiring timber resources.

avail¬

fairly profitable

prices,

was

longer

years

their customers for want of paper;

Another reported finished pro¬
ducts, requiring both hot and cold

420,000 Shares

(Per Value $6.25

they

loss

ceiling prices,
27V20 per pound.

present

with

invaluable

and

BROAD STREET

HAnover 2-2800

New

York Stock Exchange
New York 4, N.

Tele. N. Y. 1-2216

[Volume 163

Number 4500

THE COMMERCIAL & FINANCIAL CHRONICLE
i"

mentally

responsible

for

est.

Will

Price
You

Increase

their

with

Advances

rest assured there will

can

retreat from the

18V20 scale
increase and correspond¬
ing cost increases are inveitable

Buyer and

of wage
and

inescapable.
I
question
is a
purchasing agent

there

Seller Uncertainties

I should like to say a word here
about prices. I doubt if there is a

purchasing

day who is
expenditures
magnitude
for

agent

not

confronted

America today who believes that
the retention of controls will

\.v

y *

They have an obligation to burden of these subsidies push up
country, to you, and to them¬ Government expenditures which,
selves, and industry can be de¬ In turn, are reflected on the gen¬
pended
upon
to
assume
that eral body of taxpayers rather than
on
responsibility.
consumers
of the subsidized

our

present state of uncretainty.
Production

3363

•'

considerable

with

en¬

capital equipment or material, or
holding one whose
company is not con¬
prices down, or one, who is not
fronted with corresponding sales
definitely of the opinion that, with
on
which they are unwilling to
the relaxation of control, prices
make a firm price for delayed
ydll advance and production in¬ delivery, under existing uncer¬
crease.
'•
tainties regarding controls, mate¬
[ Let us be realistic. Prices are
rial,'and labor costs.
going to advance and will con¬
Under
the
circumstances,
tinue to do so in ratio as produc¬
neither the buyer nor the seller
tion begins to fill the gap between
can criticize the other for asking
spending
power
and
demand.
for
price protection. Numerous
Then, let competition take its
escalator clauses are being used
course.
for the protection
of each and,
;
Thomas Edison wrote his friend
courage production while

•

while

Marks, under date of April 7, 1891:

clauses

these

may

prove

adjustments later that will be ex¬ relieve the pressure for still high¬
er prices.
tremely upsetting to business. *x
i For too many years the Amer¬
Of particular interest to pur¬
ican
people have been taught to chasing agents, and with a decided
depend upon their Government inflationary
aspect, is their in¬
products.
for a living. It has unintentionally
ability to purchase standard arti¬
The
most
serious
objection; destroyed their independence and cles of pre-war merchandise behowever, to subsidies is the in¬ self-respect and forced them, io cause the
manufacturers, ^re¬
stability they will create when the live beyond their income.
stricted by present controls andprice control program is finally
Subsidies
should
be
discon¬
ceiling prices, have been forced
abandoned.
Our Government is tinued as rapidly as possible, not
to d is continue manufacture;'
paying over $50 millions per year only because they intensify our
whereas, newcomers in the field,
to South American countries for
physical and monetary problems with little
previous experience
the production of coffee; over
$700 but because the longer they sur¬ and limited
manufacturing facili¬
..

millions per year to farmers and

vive the

packers for meat;

vested interests in their

and over $500
for dairy prod¬

millions per year
ucts.
When
controls
are' de¬
controlled and Uncle Sam is no

longer
will
of

"Sugar

coffee

pound;

from

meat

pound; and
pound.

per

Today,
asking

the

Today, inflation is

;

The

per

result

stark real¬

primary inflationary force

the

cent

every

to be

seems

Black

law in

traffic

markets

will

reasonably effective, the real

com¬

bear.

demonstrate

not have the same confidence and

that

respect for industry, who rendered

foday. But their reign is only tem¬

such

porary.

:;he

.On the other hand, the majority
and
American
industry,
performance during and
before the war period has estab¬

the

them

enviable

the

hold

now

solution

that

This announcement is not

viduals

Subsidies,

unquestionable

the

digal

reputation, from
standpoint of production, ef¬

our

their

goods

for
for

indi¬

succeeded in buying any consider¬

business

amounts

War Production

and

have

you

enjoyed

long

of mutually pleasant and
profitable business relations. They
heed you as badly as you need
them.

Whether

taking

care

of their

they

During the
Subsidies

to the extent

you

Subsidies

than

secure

prices

time during the past decade,
depends largely upon your past
relationship. That relationship is
either

day or
ment shows
their

you

the

goodwill and personal inter¬

solicitation of an offer to buy securities.

made

war

were

was

are

down

materials.

argued that

necassary

told

from

Price $100 per share

to raise

wages

necessary

and

encourage

in
that

plus accrued dividends from June 15,1946

keep

reflecting

Copies of l/ie prospectus

map be obtained from the undersigned (one of the
underwriters named therein) only by persons to whom the
undersigned

S. Treasury

may

legally offer these securities under applicable securities laws.

the cost of

living subsidies, which serve only
as a camouflage to cleverly hide
the true price of the product. The

greater asset than

$4 Preferred Stock, Series A

During the fiscal year 1946, over
$1.7 billion will be spent out of

dividend to¬
it is not. Your annual state¬
paying

that the material in

Riegel Textile Corporation

the higher wages.

any

emergency

are

production and hold
check. Today, we are

are

ability, when material is

difficult

not

extreme

payments

producers to
production
of
scare

years

"screened"

question is needed elsewhere, or
(Continued on page 3364)

June 20,1946

cases

or a

•

able quantity of, our estimated*
$15 billions of surplus war mate- /
rial; or if, as in my case, after repeated attempts, you have been ;
sent from pillar to post, told that
your
inquiries are, being

New Issue

the "Pro¬

marginal

take temporary advan¬
situation which can only
undoing.

Son"

and

whom

not

50,000 Shares

where

•
*

the "problem ctrld"

I speak ot those industries, my
fellow
purchasing agents,
with

dealing,

rec-

substitution

have for

react to their

going
tage of

fair

the

recon¬

Reconversion, we
have been told by Chester Bowles
are
essential
to
price fixing. I
take the position that Government
subsidies should only resorted to

ficiency and

elimination

during

Subsides

and

the

and

available

Cash

offer of securities for sale

pays a higher and in-*
flated price.
I wonder how many of you have

supply

use.

spending

at the

makeshifts, for which the

inferior

same

each other.

whose

for

and

war

version program,

people

service

unparalleled

hands

of American people are a sensible

lished

an¬

article

consumer

$175 billions,
time, through food subsidies, as
compared with $31 billions in
swer lies in the integrity of the
is helping us to eat more by pay¬
mercial things, as in nature. If one
1919. Liquid savings of individu¬
company supplying the merchan¬
ing a part of our grocery bill.
attempts to obtain more profit
als is estimated at $145 billions
dise
and
your
past relationship
than the general average, he is
Why not remove those subsidies against $27 billions after World
with them. Business today is done
immediately punished by com¬
now when the national income is
War I.
largely on the basis of faith, again
at on all-time peak, with a mini¬
petition."
To
neutralize
this
expanded
emphasizing to each the impor¬
i That law
has not changed.
mum disturbance to our
economy, spending capacity, production is
tance of buyer and seller relation¬
Naturally, there will be specula¬
rather than
involve large price the
only
safeguard
that
will
tors and rapacious parasites who ship.
It is unfortunate that Adminis¬
Will try to mulct the public for
trative Officials in Washington do
"There

cnandise

is, of course, the wartime expan¬
sion of our money supply in rela¬
tion

inferior

considerably higher cost. The net.
ognized sources of quality met-

civilian

eat less and,

supplying

ity'

40 to 100
butter 130 per

ties, can, and are, by adding a few
and unnecessary gadgets/

perpetua¬ useless

Inflation

from

inherent will be the

tion.

there
price

Administration

the

Daddy,"

increase

Dillon, Read & Co. Inc.
!

•

ADVANTAGES
of

"Listing" Securities

This

announcement

is neither

The

offer

sell,

nor a

solicitation of offers to buy,

any

of these securities*

offering is made only by the Prospectus.

NEW ISSUE

Every business day,

advantages
securities

national

year out,

exchange, and

investor in those securities

the

corporations, and in particular those whose

curities
to

read

called

are
our

listed

not

new

booklet

atiy exchange, will
—

Twin Coach

well.

Progressive officers, directors and stockholders of
all

85,715 Shares

certain

the corporation that lists its

accrue to

in and

year

$1.50 Cumulative Convertible Preferred Stock
)

se¬

obtained

Price $36 per Share
Copies

copy

—

"Advantages of Listing."

Your

■

(Par Valufe $35.00)
f'

want

factual and concise

Company

may

the

named

Prospectus
in

the

legally

may

Prospectus

offer

this

obtained,

only by
stock

from

persons

under

the* undersigned
to

whom

such

applicable

other

underwriters

securities

may

laws.

by addressing

The President's Office

^
n

MEWYORKCURBEXCH ANGE

New York 6, N. Y.
•

Reynolds & Co.

Laurence M. Marks & Co.

>;•

June 19,1946

•

and you cannot afford to be

The

(Continued from page 3363)
been

sold

some

demoralizing effect of these

strikes

agency

clearly

shown

the

first quarter

deficit statements of
General Electric, General Motors,
Urges Supply Stocks Be Sold
Bethlehem, U. S. Steel, and hun¬
If production is the answer to dreds of smaller companies, sub¬
stantiating their position of inj inflation and there is a recognized
abality to maintain earnings and
shortage of material, due to crip¬ pay
higher wages in the face of
pling controls, strikes, and ridicu¬ increased wages and prevailing or
lous pricing theories, it Would be
inadequate ceiling prices, notwith¬
most helpful if this surplus mate¬
standing Government and Labor's
rial
were
made
available now
spokesman's
statements
to the
when badly needed and with a
contrary.
minimum of red tape, and not held
With

higher priority.

quired by

caught
price level that will prevent
your participation in the inevita¬
ble competition that will follow.

Splurge Cannot Last
has

mists

The Present Buying
"

Thursday, June 20, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

3364

length of time re¬
industry i"fcbr~ catch up

to the

ourselves has made us forgetful
virtues

those

which

Re^

our

public was founded — unselfish¬
ness, honesty, restraint, tolerance,
fair dealing, and other homely
We
are
told
that
within
six years, we might as well face the
months after the mills get into fact that the time is not far distantl&hristian virtues. Without these,
full operation, steel backlogs will when American producers must no people or nation can succeed
be wiped out and a highly com¬ meet international competition for or sufrd&erForeign na¬
petitive market will develop. In international trade.
this frenzied buying orgy, thou¬ tions are clambering at our doors
sands of consumers are duplicat¬ for loans in astronomical figures.
ing orders with different sources The money to be received against
of supply. When merchandise be¬ those loans will be used largely

consumer-^mands.

with domestic

Whether it be three years or Jive

Baltimore'1StockExcfe
Officers & Committees

comes

available,

large

propor¬

tion of these orders will be

can¬

celled.

expenditures —
machinery necessary to produce
steel, textiles, shoes, and other
for capital goods

commodities
Exhaustion
Another

of Natural

Resources

meet in

eventually

will

worldwide competition.

serious

problem con¬
The late
Lord Keynes, in a
fronting industry and the purchas¬
speech before the House of Lords,
ing profession is the exhaustion of on the subject of the British Loan,
our natural
resources, after having said: "The United States is rapidly
until it becomes unsalable or a
A Change Will Come
supplied the major part of the
liability to our productive pro¬
becoming a high-living and a high
The anwser is the swing of the material to
prosecute two World cost country.
Their wages are
gram when it gets into full swing,
pendulum.
Time
marches on. Wars.
'The labor situation is the most
roughly 2Vz times ours."
Aroused public opinion will even¬
serious condition facing our pro¬
; While our total iron reserves are
A
logical question, therefore:
tually demand action on the part
ductive program today. Over one
ample to meet domestic require¬ Can the United States, after it has
of our legislators who hazard elec¬
ments for a long period, we are
thousand strikes, an all time high,
tion penalties by offending labor,
supplied its pent-up, war-restrict¬
told by William E. Wrather, Di¬
are now scheduled with the War
ed demand for consumer goods,
with utter disregard of the good
rector of the U. S.
Labor Board.
Geological with a national debt of $300 bil¬
of the Nation.
Survey: "The cream has largely
The responsibility for this con¬
Unfortunately, however, public been skimmed off our richest and lions, a wage scale of $1.25, the
dition
lies
primarily with the
highest standard of living enjoyed
opinion is unlikely to be aroused most
advantageously
located by workmen anywhere, an indif¬
Government
which
practically until dire
consequences have in¬ minerial
deposits and, with in¬ ferent, arrogant, selfish people,
dictated the wage goal and also
flicted serious damage to our re¬
creased labor and equipment costs,
the prices of goods. Many Unions
meet
in
worldwide competition
conversion program.
low grade foreign ores can be con¬
the workers of the low-cost na¬
are already demanding that their
Another
problem
confronting centrated and delivered to the
wage contracts be abrogated or re¬
tions, backed by a desire to work,
United States at prices that will men and women who have passed
opened if controls are relaxed and you will be the use of, or the re¬
turn to, substitutes or synthetics. be competitive in many cases with
through the tortures of hell and
prices advance. The result will be
Vast
improvements
have
been domestic products."
the slowing of production, delay
are satisfied with little?
made
in
both
during the war
Of the original three billion tons
in output of goods
to fill the
These are some of the buying
urgent needs, higher costs, ^and period and the permanent adop¬ of commercial grade iron ore in conditions you will face in the
tion of these can prove both ef¬
the Lake Superior Region, nearly
higher prices.
year ahead but, fortunately, they
fective and proftiable.
half has already been mined. For are
only temporary.
Unfortunately, under the Wag¬
Your
inventories will
require many years the United States has
ner
Act, industry is subject to
Of greater
significance, how¬
close watching because of rapidly been supplying 60% or more of
penalties for failure to bargain
ever, is the breakdown in our
changing costs in both material the world's petroleum require¬
collectively and there is no provi¬
moral fabric. Largely, we have be¬
and labor. Due to our enormous ments.
The only answer is im¬
sion to prevent unions from main¬
come a loose and easy-living peo¬
productive capacity, necessitated provement in methods of mining,
taining their monopolistic power.
ple. The fundamentals of rugged
war
expansion,
many refining, treating, and transporta¬
That same statute, however, does through
individualism,
self-reliance, in¬
basic materials—steel, brass, and tion; or import enough
iron to
not impose a similar obligation on
itiative, and imagination, are no
aluminum—will be available
in sustain our industrial economy.
employees or their unions, and,
longer instilled in us, for we have
quantity earlier than anticipated.
The same condition applies to
as in the case of the coal strike,
been led to believe that our Gov¬
This present splurge of buying
the union can refuse to negotiate,
copper, lead, petroleum, lumber, ernment owes us a living.
last
forever.
Increased
.causing hardships which lead to cannot
and many other strategic minerals.
Having participated successfully
irresistible pressure by the Gov- prices
will
provoke
"buyers
Numerous guesses have
been in two World Wars, the command¬
ernment upon employers to grant1 strikes."
Concealed
inventories
the union's demands.
I will appear, as after World War I, made by statisticians and econo¬ ing position in which we now find
^

BALTIMORE, Md.—1The Balti-;
Stock Exchange has

Dorsiar*

nounced the election of J.

annual*73*
con- - ^
business:

Brown as President at the

Brown

Mr.

election.
ducted

has

brokerage

under his own name and has been
a

of the Exchange since

member

He served as a mem¬
Governing Committee

early 1933.
the

ber of

1937

from

through

1945

and

Vice-President during the 1944-45
term.

At the organization meeting of
the

Exchange

June 10, John

Redwood, Jr., Baker, Watts & Co.,
was
elected Vice-President; Ed¬
ward J.

Armstrong, Stein Bros. &
Treasurer; Mrs. Helen P.

Boyce,

Garrett, Secretary and Assistant
Treasurer,
and
Miss Jessamine

Johns, Assistant Secretary.
Members of the governing
mittee of the Exchange are:
Term

John

Ending

Marshall

1947

John
Sheely,

Boone;

Redwood, Jr.; Harry M.
Harry M. Sheely & Co.
Term
Edward J.
roll

Mead,

Walter M.

com¬

Ending

1948

Armstrong; W. Car¬

Mead, Miller &
Weilepp.

Co.;

Standing Committees

Philip L. Poe,
Chairman, Philip L. Poe & Co.; J.
Dorsey
Brown;
Howard
S.
Arrangements:

Schwarz.

Admissions:

Grainger Mar¬

burg, Chairman, Alex. Brown &
Sons; John Marshall Boone; Wm.
V.

Elder, Jr.; Howard S. Schwarz;

Howard R. Taylor.

Listing:
John
Redwood,
Jr.,
Chairman; Edward J. Armstrong;
Marshall
Boone;
Wm. J.

John

This

announcement

is neither

offer to sell,

nor a

solicitation of

The offering is made only by

offer to buy

any

Price, 3rd, Alex. Brown & Sons;
Walter M. Weilepp.

of this Stock,

Finance:
W.
Carroll
Mead,
Chairman; J. Dorsey Brown; John

the Prospectus,

Redwood, Jr.

NEW ISSUE

Delivery
of
Securities:
Leo
Kriegal,
Chairman;
Edward J.
Armstrong; Harry M. Sheely.

2750)Shares

Conduct:

Business

Chas. W. L.

Johnson, Chairman;
Walter W.
Abell, 2nd; Thomas S. Blocher;
Lee E. Daly; W. Carroll Mead.

NATIONAL GYPSUM COMPANY

&
Quotations:
Weilepp, Chairman;
Leo Kriegel; Philip L. Poe; Her¬
bert
W.
Schaefer,
Herbert W.
Schaefer & Co.; Howard R. Tay¬
Commissions

Walter

vCOMMON STOCK
($1 Par Value)

lor.

Chas.

Law:

PRICE $29.50 PER SHARE

•,

\\ *y v

Charles Moran,

BLYTH & CO., INC.

the

GOLDMAN, SACHS & CO.

GLORE, FORGAN & CO.
HARRIMAN RIPLEY & CO.
INCORPORATED

HEMPHILL, NOYES & CO.
LEE HIGGINSON

CORPORATION

KIDDER, PEABODY & CO.
MERRILL LYNCH, PIERCE, FENNER

& BEANE

Jr., a partner in

Francis I. duPont &

Co., has been appointed a mem¬
ber of the executive committee of
New

Edwin

THE FIRST BOSTON CORPORATION

Johnson,

By N. Y. Curb Exchange
the firm

Henry

Chas. Moran Appointed

Copies of the Prospectus may he obtained from any of the several Underwriters,
mclud.ng the undersigned, only in States in which such Underwriters are qualified to
act as dealers in securities and in
which the Prospectus may legally he distributed.

W.E. HUTTON & CO.

Lay Duer; F.
Grainger
Marburg;
Shirley
C.
Morgan, Frank B. Cohn & Co.;
Harry M. Sheely.
Chairman;

York

Curb

Exchange,

Andrews, Posner
&
Rothschild,
President
and
Chairman of the board, announced
Mr. Moran is a governor of the
Curb Exchange and a member of
the general committee on outside
supervision and the committee on
Posner,

member firms;

R. fil. Horner Opens

Washington Branch
.

June 20,1946

JOHNSON, LANE, SPACE AND CO., INC,

WASHINGTON, D. C. —R. M.
Horner & Co. announces the open¬

Washington office in the
Hotel, under the man¬
agement of Louis A. Starling.
" ;
ing of

Willard

vVolume 163

Nuriiber 4500

THE COMMERCIAL & FINANCIAL
CHRONICLE

Tfue,

(Cpntihued from first page)?
Year

Plan, such

dustrial output by 50%

s
-

pre-war
rate

level, to

"high

socialist accumulation of

fensive power of the; U.S.S.R.: arid
to supply the armed forces of the

Soviet

;

ern

Union, with the most mod-

;

military
equipment,"
Erihariced military preparedness is

necessary

because "monopolistic
capitalism is capable of breeding
-

;

f hew aggressors.'' (Private moriopi
plies are the gist of all capitalism,
t
according to the' Bolshevik
primer.)

'i
T

"Rehabilitation" is mentioned in
passing, but the production fig}

tires of the Plan all
compare the
future with the pre-war,, imply-

I/,

Central

; Europe

arid:

elsewhere,

arid other methods of a crude eco¬
nomic imperialism.
To become a
real Big
Po|ver,'briri that can re¬

lend-lease must have,
been for mechanized warfare in a

country

with - such
a; limited
industrial potential.
-r-F " >
Another

item- of

basic

imp

tance: by 1950, Russia's output of
steel Vmust; increase" to 25.4 mil¬
lion tons, or ;"35% J above the
pre¬
war level." Without, dictators. and

super-planners,-

we brdught pro-:
duction pp to some 90 million.tons

; blaming

Galicia,
could

tons.); Nor would
European coun¬

tries

tem calls

fori expansion, which the
logic of deniocracy cannot accept.
expresses

itself

diplomatic £uertilla warfare; in
thu impossibility of
concluding

;
"

number estimated between 12 and
20 millions—have gone a long

1,680 million tons.p;

way

to. repair

the damage?
At .any
rate, Soviet reports indicate that

So far, no

are

the

•the Second fell

much

20%

Stalingrad's factories again behind schedule—but
even at, face
running at full blast. So-are value "the
forecasts, of the. new
"restored" Ukranian mines,
leather ,and .Shoe > plants of

the

accomplished what it set out to do

even

;

Five-Year Plan has

Leningrad, etc. .Also, 31,000 miles
oF railfoad

have

been

"rebuilt"

Rid the equipment "renovated",
.Be

that

Plan- are;far from impressive. a per

Ori

capita-basis, Soviet .progress

remains mediocre., compared with
any industrial nation in the,
talistic world.
Especially

capi-*

iri

so;

Russian

garrisons

consists

against

the

over

boundaries

fear—or

they

moral

our

before, to

They

realize

Her

leaders

underlying fac¬
brought disaster on

Hitler, who

was far ahead of his

nomic

people-

the

sys¬

Upheavals, arid' to

rubles, which

mean very

little,

'-In percerrtage terms. which mean
less, but a Jew of the published

.* iddta permit
;

„

;
*

glance into

the

the 'form of notoriously low living standards.
Coal

miracles of Soviet planning-, leav¬
ing aside the price they pay in

and

oil

fundamental

are

In modern economy. The U.S.S.R.
is rich in coal deposits which are
Comparable to ours. The new
Five-Year Plan boasts that by

some

iri

the
the

prewar
In
other
words,
only
160 millions tons were mined

©f the American output.
Five
Fears hence, the Soviets expect to
surpass the British.
As to oil, we

cast
14

greedy

eyes on the oil fields

©f Persian

Azerbaijan, in spite of
their official claim that "for the
Wealth: of "1# bit ^delibsits- ffie
{Soviet Union stands first in the

;

world.";:

million

less
;

7,600'; locomotives,

and

For the

country two-

road

than

people,

one-third

and

With

our

rail-*

mileage, motorized ; vehicles

'?, F'

country.
last

This advertisement
securities. The

V'F

item should

not

the

is neither

offer to sell

those of the undersigned who

illuminating. Soviet propa¬
ganda makes a great deal of their
educational
accomplishriients.

reach

ests

are

there,

the

involved) and

letting

altogether.

one

NOT A: NEW

674

things

dppeasjtog
deteriorate

That suits the Soviets

perfectly; it gives them time! to
accomplish their aims in the

pied

areas

and

themselves.

leaves them

choice of the
propitious
to

one

fight.

offer to

are

buy

ol thesQ

any

behalf 01 only;

registered dealers in securities in this State.

Federal

Manufacturing
Engineering Corp.

ours.

this

goes

show

that

Russia is not

a first-class
power-p
certainly not when fheasured by
American standards. She has riiore

Common Stock
(Par Value $1.00 per share)

manpower, more fertile land, and
natural resources.
But she
is short in what makes
things
more

tick:

imaginative

technical

management,
labor effi¬

Price! $5.00 per share

know-how,

ciency, reliable^workmanship; hdoperative organization,- arid- indi-*
vidual

incentive.

Her

inherent

The Prospectus may be obtained in
any State in which this announcement is
circulated

from

only such (of the undersigned

experts, that every single indus¬
try, if not every major. plant,
built up by the Soviets had to
rely on guidance by foreign en¬
g

in such State.

company

incorporated

technological improve¬

m e

lawfully offer these securities

Sills, Minton

gineers, and that throughout their
r e

trs may

A. G. Edwards & Sons

ments had to be borrowed from
in large numbers should be vital.
Well, the new Plan -proudly an- abroad. ■

Butcher & Sherrerd

tioUnPes that: by

.1950 "The output
©fautomobiles will increase to
| 500 thousand, or 3.4 ; times (the

■■■

■

pre-war

volume)"

Just

think:

vJ 150,000
;

cars
a
year 1 were f. all
I Utopia could produce in 1940! We

produced 5,600,000 cars in 1941
need neither governmental
} planners nor even new plants to

j rand
F

.rraiseit

to/

annual

j 7,000,000, provided
'.1 fid OPA ..interfere.

rate

strikes and
As early as

Nor

ate

they

commodity

able' to

surpluses

iri

quantities to he jexdiariged against

foreign goods.
us

but

international

far

progress.

tives arid
of the

They

behind
Given

are

the

/ advertising,
rate

"lofty'*.

very practical

Kremlin, it

Blair f. claybaugh & Co.

ahead of
j

in| the

Chace. Whiteside & Warren, Inc.

large

^ l

I ,\

(i,t x

4-i /

*,1,

Investment Securities Company
;•

•

\y\ *, ' 1

Link, Gorman & Co.

oj;

can* match

Dudley H. Waters

Co.

•
,

/unaft, 19^5

Park-ShAughnessy

mo¬

ambitions

only by exploiting other, nations.
1918, in the last year of the first That explains its
ruthless policy
World War§ this country ^managed Of
'denuaing^'Smaller .'cbiiiiiries' Tri
-;

BoNttcher and Company

create

the

riiomeni

ISStJfi.

studying presently

American schools

All

solicitation of

occu¬

strengthen;

116,000 Shares

thousand"—about half

lation than

nor a

resisting hexe
American inter¬

783 institutions of

are now

many as are

travel:

where British or

ottering is made only by Prospectus, This is published

least

There

appeasement

ciioose: to

472,000

freight cars—not much more than
one year's peak production iri this
A

road

na¬

Outcom4

should

total of

and-a-half times the size of con¬
tinental United States, with 60

expect to manufacture

weakness is epitomized
which in¬ by the fact, well known to the

clude trucks and buses.
F industrialization of a

remain

economic

Or take automobiles

The

ciVilfeed

iye;?yerirspttmep^

at the col¬
1949—(roughly two-thirds of
British, less than one-half of lege level, this in spite of a larger
and more
rapidly growing popu¬
German, and barely one-fifth

annually produce 1,700 million
I barrels; their Plan projects a goal
©f scarcely 260 million barrels.
That may be one reason
why they

will

nor

higher learning in Russia; against
91 under the
Czar, they claim.
1959 the Soviet coal output will
"In
be raised "up to 250 million
tons, bf: 1950", we learn, "the number
higher .School:1 stridents^ riiust
©r
by 51% above .the
level."

much,

static;

in the air.

The third road

once

Russians

actually

under¬

Molotov's explicit statement of
who did
not; expbet England and May 27j and the Russian attitude
all along the line, leave no
doubt
France-to fight; to say nothing of
about their determination to
get
the United States.
No such "fa¬ what
they warit.
That does not

outnumbered at

fight it out.

it, may, by 1950 comparison to the free
economy
everything will be vastly ahead of this, country.
That holds for
;
of 1940. {Soviet experts can pre^ every kind of production for -which
i diet with precision even the
vorable" coiiiditioris await the fu¬ inhibit the all-out pacifists and
crop statistics are; •available.
The So¬
: for the
summer of 1950.
(Weather viets promise to Taisedheriutput ture aggressbr, who would have believers iri "human riature" (a'sand similar factors do not. enter of
electricity by 70% (!); to an an¬ to face the grieatly superior weap¬ suriied tb fee the same
everywhere)
Into their; equations.)
Much of nual billion'kilowatt^
ons of this
country,-and would be to advocate more appeasement
the comparison is given either in
year, we used almost thfee times
as

Alliance

little doubt about the

mean¬

own

mine the democracies from within.

in war Reparations,
especially iri avidtibri might, arid

adversaries

precise program to Moscow In
ultimative form, risking that the
"bluff" may be called.
There is;

tem, to foment civil wars and dis¬
integrations abroad/ to profit by
international dissensions and eco¬

the

can

time to strengthen their

which

it ^<Ud

terms of

temporary at best.

facing the problem squarely. A

Grand

con¬

both, hoping in the mean¬
time to incorporate and arm
some
million

lead,

conflicts, with the

The second alternative
consists

indignation and

the refusal of credits.

140

new

appease~

solution merely
postponed,

the

bear

military preparedness is

Americari basest

to tions, led by this country, would
must believe— have to be mobilized to present

sent, they have nothing
than

Trieste

atom-secrets, etc./ indicate.

ment is bound to

"sphere" which they carved out
for; themselves with Roosevelt's
and Churchill's
open or tacit

for

other words;^continued

un¬

into

Turkey and

demand

and

pass

Her, war-potential is
a-fraction of the Allied counter¬
part, bnd heri advantage, if any, in

must

escapade

pressure on

the

(in|ef¬

their

the protest
against

material.

Japan

Mediterranean footholds, the
planned disruption of
Germany,

insure

weakness.

tors

there,

successful)

Greece,

and

willingness of the democracies to
fight, unless actually attacked. As
long as the Russians do not tres¬

;

estimated at

tions stop

fect,

well

Nor do Soviet andW-

The decisive weapon iri Russia's
hands is psychological rather than

that much of the recOnstruc-

reserves

and Korea.

devastating attacks.

C ,'

friendly to the Allies

the

sys¬

Central Europe from
Finland

Albania,

Iran, the

the occupation of

At stake
of the whole

bolshevization

matter

judged intolerable.

Romania, Hungary, etc.;

obliterated by bombing
of hours.
(The
Five-Year Plan emphasizes

new

iniperialism for the fail¬
clearly'Ritlihed the challenge.

The, conflict

ain

is the

the production of synthetic
liquid
fuel, to be stepped up to an an¬
nual 900,000

British and

dynamics of the Soviet

Hitler's

request for Danzig and a
corridor
through the; Corridor, which Brit¬

within

American
ure,
The

are in the Baku
area, in addition
t6 the minor holdings iri
Bashkiyia
and
newly
acquired
ones
in

But challenge she
must, and
Molotov's statement on the Paris

conference,

'almost

tie consolation for the loss of
vital parts. Russian oil
resources,
etg., largely concentrated as they

forced industrialization, the
great sist now ana challenge some day
planners Will havev reached/7, or
he. united front of;
democracies,
8% Of our present output, less Russia must; expand. That is ex¬
than the pre-war German or the actly what she is
doing. "Search
present
British ./ capacity.
One for Security," is another name for
might
surmise
how; important it.

American

circumstances
trie three
alternatives from
prohibitive to which the
Allies may
overrun the whole
choose.
territory Of the What is at stake
is, however, a
U.S.S.R.,lbut that would offer lit^; hundred
times more than

during the war; just b^fpt-e,' it was peace
treaties with the enemies or
more than 50 million -as
against 18 bf doing
"business" with one an¬
|iori either; already has taken million in Russia, and;over ,20
other; and ;in the fact that the
place or is just a minor job to be
million in Germany. tThere. is no Russians
hold on to their con¬
taken ffrstnde. Maybe, after 111^
shortage of iron ores in the Urals, quests over
the "fascist hordes" did. not de¬
Anglo - American
mind you; moreover, the newly
protests.
stroy as much as .we have been led
developed ore-bearing bodies in
On the military
to believe.
Or could" it be that
side, the con¬
the' northern Kila Peninsula,
,jn flict- • is not
the tremendous; Russian' loot frbitt
based
on
Russia's
Russian Azerbaijan, and iri the
Central Europe, plus the sweat of
strength, as it is often interpreted.
Central Asian Soviet republics of
It would be more correct to
millions, of war prisoners and Uzbek and Kazakstan
say
contain
other slave workers—their total
that it is "due to tier fundamental
commercial

ihg

;

Soviets might bring out five years
hehce.
After "thirty
years \ of

the

over

ensure

,' capital," "to raise further the de¬

to put 1,000,000 passenger cars on
the roads, twice the number the

to increase in-

geographic

make,

/J.

Co.

'+w*dv--ixi

■*-?■

■&u*fc?W4v&

Thursday, June 20,1946

;»>>i^W^^lfc'^i>'^>iu*ji'i^ii^»l<,0*:iW''<l

H. M. Watson, Geo. W. Ward and R. Bevan, all of Amos Treat

Gene Stark, Merrill Lynch, Pierce, Fenner & Beane; Stanley Roggenburg, Roggenburg & Co.; John J. O'Kane. Jr., John J. O'Kane, Jr. & CoMelville S. Wien,
M, S, Wien & Co,/ Hanhs Kuehner, Joyce, Kuehner & Co:

& Co,

MMte'Mi

''*%
*"*

i
i

Jig

JikfAmm
^hw

v/'

Arnold Hanson, Hanson & Hanson; S. Wellmer Hanson, Hanson & Hanson; L.
Greenwald, Wellington & Co.; Ray Clark, Amos Treat & Co.

Arthur

Tom

Prellerr Jnnger, Anderson & Co.; Gus Muller, J unger, Anderson & Co.;
Rooney, Mitchell & Co.; Martin King, King & King; Irving L. Feltman, Mitchell

W Co.

Nathan A. Krumholz, Siegel & Co.; Irving Abelow, Mitchell & Co.; Sidney A,
Siegel, Siegel & Co.; lack A. Jossem, Mitchell & Co

■77;;7. *

:w;

-B

•

,.7

B7,

\ Kenneth
Leibert, Mitchell & Co.; Everett Wendler, Miichel^
Mason, Allen! &; Co.; Bob Eble, Mitchell & Co,

i ®'"

&JG6$ IkFage

•WH-

Frank McCormick.

John

pean Witter & Co.; S. H. Junger. Junger, Anderson & Co,
Hines, Kaiser & Co.; George Anderson, Junger, Anderson & Co.
'7 ".V 'J7..

■

kawSBWMj'

4ii»>j^lwW0Wrafi*8*ci/M*»*

Bert Seligman,

Ward & Co.; Irving Gerste, Shepard, Scott & Co.; John Stevenson,
Wolforth, H. Hentz & Co.

Ward & Co.; John H.

Volume 163

Number 4500

Annual Summer Outing pitJune 14, 1946

:'• v

Walter

Tellier,

Tellier

Co.; Arthur Schwartz,

Bache & Co.

Jack

Bloom,
King & King.

v.;

Public

...

National

Bank;

Sam

King,

Roy Larsonj H. D. Knox & Co. Howard P. Frey, How
McMahon, W. E. Burnet & Co

ard P. Frey & Co.; Roger

Estabrook;<^ p)^ Frank Callahan; Vilas&I#ckey*

Charles Kaiser, Benoald &

Co.; Harold Smith, Collin,

Norton & Co.; Ed Beck, The Chronicle.

Walt

Bert Pike, Ernie Uenhafd, and
Filkins, all o$ Troster, Currie & Summers*

John J. O'Kane, John J. O'Kane, Jr. & Co.; Frank
Barrett, Lewisohn & Co.; Bill Summers, Troster, Currie
& Summers.

Carlyle Detjen, Amos Treat & Co.; Irving Stein,
L. D. Sherman & Co.; John Reilly, F. H. Koller & Co.;

Jerry

Weir, Amos^ Treat & Co.;
£f« L. Ohrstrom & Co.

William McGovern,
.

George V. Canniff, Henry J. Zehder, and

Merrill Summers,

Ken Browne, SeVgman, Lubetkin & Co.; Charles

Jay Duga, Merrill Lynch, Pierce, Fenner & Beane

Bob Franklin, M. S. Wien & Co.

P. Simmons, all of Hari Smith & CoY

Joseph
s

Joseph C. Eagan, Frank Masterson & Co.; Maurice
Hart, New York Hanstatic Corp.; Leo J. Goldwater,
L. J, Goldwater & Co..

Alfred E. Loyd, head of the re-established firm of

Alfred

Loyd

Co., investment

^ecntiye, secrelaiy^ofi fh^
Association.

brokers; recently

Security ^Dealers
■

mmm^mrmmmmmmmmmmmrniimmmkmmmmmmmmmmm*

Held at

Frank Koller, F. H. Roller & Co.; Jules
Sartorius & Co.; Alexander Jacoby (guest).

Lipsky,
.

Engineers Country Club

David R. Mitchell, Blair F. Claybaugh & Co.; Hal
Murphy, The Chronicle; Cormac Tully, Kaiser & Co.

Bert Knox. H. D. Knox & Co. Ed
Knox &

Schaefer, H. D.
Co.; Shelly Pierce, New York Journal of Com¬

merce.

4* r

tA £'■

,,,.,,,

Charles E. Doyle, Buckley Brothers; Tracy R. Engle, Buckley Brothers;

McLaughlin. McLauahlin, Reuss & Co.; Wm. Hart Smith, Hart Smith &
Co.; James Currie, Troster, Currie & Summers; John Butler, Ceyer & Co.; F. J,
Rabe, F; J;#$be «
> 1

Kester, Frederic H. Hatch & Co., Inc.; Gene Matalene, Hornblower & Weeks.

A. F. Hitter .American Electric Securities
Corp.; Otto Berwald, Berwald & Co.;
CJeorge A. Searight, First Colony Corp.; C. Lansing
Hays, G'tfford, Woody, Carter &
Kays,
r
r
i*11
^
^
i

Eric- Christopher, 17. S. Treasury Dept.; Henry
Schmitt, Pulis. Dowling & Co
JCbrris Manson (guest); A. P. Morris, Estabrook & Co.

s.nwuwwotU'1 iiwWHjiiji

HWIIWW

v.,ii(,

John

Ray A.

Stanley Roggenburg, Roggenburg & Co.; Ted Plumridge, J. Arthur Warner <Sc
Co.; Ken Howard, J. A. Hogle & Co.; Joseph Monahan, Laird & Co.
14

Gus

Levy, Goldman, Sachs & Co.; Bill Kumm, Dunne & Co.; Dick Abbe, Van,

Tttl/l & Abbe; Sam Vamedoe, Varnedoe, Chisholm & Co., Savannah, Ga.

;

Number] 4500

a
John Sherger, Francis I. dut pont & Ca,; Gus Grindel, Francis I. dul Pont & 'Co.; 'Arthur Vare, Hourwich

4 Co5

Robert I.

Herzog, Herzog & Co.; Herbert Singer,

Luckhurst & Co.

Irving Rosenberg, Diamond, Turk & Co.; Ben
Grody, Herzog <& Co.; Wilbur Krisam, Geyer & Co.

% MW

y+zirs

Harold Swarthout, George Yonkers, and E.. G. Bartow, all of First Colony Corp.

George Frings, Fitzgerald $ Co.; Ned Breen, R. H. Johnson &
Co.;
R. H. Johmw & Chi Jo,e Monrissey,
Johnson & Co.

E. Bonner,

Richard J. Buck &Co.;T. Reid Rankin. R. H.
"

'■*"*

John Qonnell, Amott, Baker &
Co.; Col. Oliver J* Troster, Troster, Currie &
Spmmcrs; J. S, Reitenbaugh, Goodbpdy & Co.; Harry R^ Amott, Amott, Baker & Co.;
Clarence E. Gnterberg, C. E. Unterberg <£? Co*

;r Clarence Nelson, Baker,
Weep & Harden; W3$»m Riley, F. H. Koller & Co,
^arry MacCallum, Jr., Peabody, a^ner & Co.j Mt^ernon, N. Y.

Stephane Leverv Western Development Corp.; Sidney/H.
Fischer, Western De*
Vetonntgnt, Cnrp.| Eapy JCux, heyoisohn & Co.} Edward A, Fischer, Lewisohn & Co,

J. Albert!, Shield* & Co.; J, M,
Jr. & Co.

Berk, Berk & Co.; Eddie O'Kane, John J. O'Kane,
...

Thursday, June 20,1946

COMMERCIAL & FINANCIAL CHRONICLE

THE

3370

Non-Agricultural

markets of the

world; and ship¬
ping adjustment" .
/ T
■j
After victory, new problems
arose, and peaceful cooperation in

| Difficulties of Regulation in
International Raw Material Trade

Coal*'/™-—

497/

5,252
2,440
2,070
1,050

Petroleuhi

422/

113 /
Pig Iron ——
raw
materials : was
289
attempted •Wood Pulpagain. As early as in May-June;
455"
643
Copper /-r-1943, the United Nations Confer¬ Tin
233
233
ence on Food and Agriculture at
160
250
Pig Alum'um
Hot Springs, /Va., discussed the
/ The; total share/ of these com¬
future use and regulation of buf¬
modities/in; world trade* (valued
fer stocks.
The British delega¬
as of 1936-37) amounts roughly to
tion stressed "that there should be
23%. '•
^
'
no
regulation by quotas of the
"
~
~
M
Before World War II, internaexport of any agricultural com- tional; exchange" in /these....com-'
modity, except under the control modifies Was still' streamlined
by
of some authority fully represen¬
the international! tfiarket mechan¬
tative of both producers and con¬
ism, especially by the great world
sumers."
One of the objectives
exchange places in London, New
of such regulation was to encourYork, J Liverpool, Hamburg; ,, and
age desirable shifts in production
in special markets such as Chi¬
from one commodity ,to another
cago, Winnipeg, Buenos Aires, etc.
and from the less to' the more
The function of the -International
efficient
producer.
But
these
Commodity Exchange markets as
formulations remained
a
vague cited
by "Commodities 1944" by
program for the future/
:
Bache & Co. of New York, are:
The November 1945 Proposals
"To provide a'suitable market
of the State Department for Ex¬
pansion of World Trade and Em¬ place for buyers and sellers to
ployment—preparing for the com¬ meet, to adjust controversies be¬
tween its members, to establish
ing World Trade Conference—are
the first postwar attempts at deal¬ just and equitable principles in
the trade, to acquire, preserve and
ing systematically with restrictive
*

//(Continued from

3342);//

page

confused transitional

#nd

renewed/ Some of them'worked
for
a
considerable time, while
or

period

collapsed. Or; brovjed - imr
wattline; to a: peace-time economy likewise needs go v- practicable or, unnecessary /after
erhmentai and intergovernmental the .depression. -In 1937, following

from

other. V

■

^adjustments.' The aspect of con¬ the purposefully misleading prop¬
ugaiiua
UJL
mc
n.AJ.a
uuuiniies,
stant
regulation
by
a
future aganda of the lAxis 4'Countries,
which in spite of their very sueEWorld Economic/ Government;?
cessful War preparations, adver¬
however/ may be more unrealistic
as ! "have-not"
than the alternative: the hope for tised'. themselves
•

return

and a renewed exchange of
materials; in freer markets.
•

nations

freer' trade relations

terials,

raw

the

rected

portant raw materials and their
regulation in the past has to be
.considered in more detail to re-

raw

ma¬

promptly created
problem.
It was di¬

was

to study this

The field of internationally .im¬

League of Nations

new

Committee

field

"examine the

question

the

Veal

real

facts,

trends

commercial

certain

for

access

materials,"

raw

formula which made international

and

headlines'

ppssibilities.

since.

ever

On Nov. 9,

1937 the Economic Committee of

the

International Commodity

]

Regulation

ed to the

Since the World Economic Con¬

international commodity

League formulated

"Decla¬

ration of Principles" which

necessity of

point¬

develop¬

ment of national resources and in¬

ference in Geneva in May 1927

ternational regulation schemes re¬

regula¬

lating to the supply of

tion has been discussed repeated¬
ly.

equal

all to

tcrisls

The

London, Monetary and
•Economic Conference of July 193$

^ ^

raw

ma-

'**

•

business practices

(Chapter CIV)
arid with Intergovernmental Com¬
modity Arrangements and their

•

On Jan.

disseminate

useful

information

connected with the

commodity, to
adopt standards.of classification,
to. decrease the local risks attend¬

26, 1938, the Van ZeeReport followed;
It dealt
/dealt with -"some commodities of with tariffs; methods of indirect operation, supervision and control
ant upon the /business*, and, to
/great importance for inter national
protection;- and the abolition of (Chapter CV).; And we heard
/trade." Regulation in the field of restrictive "quotas,. avoiding how¬ additionally the recent recom¬ maiptaih unifprmity in rules, regWfieat; sugar, dairy-products; wine ever/an attack on international mendations by Mr/1i Lubin, pre¬ ulatiopss land * usages in the busi^
ness.'///
•/"• ///////'/;,
and
cocoa
'was
discussed, and cartels;
It was an attempt at pared by the -American* group in
Trade Associatioris~-wldespread
agreements were finally, reached
political-appeasement; at ;a: late May, 1946, for jfche> Ecpnomic^arid
Employment' Commission; of VUN, in the XJ. S. as well as in Europe
hour, and Was doomed to failure.
time-; >.■ governments /: w e r e still
!••//: / concerning / long-term % interna¬ -r-have ".similar though more spe¬
cautious t o.wa r ds international v/ y Other: Raw Material
tional allocations of "commodities cific-functions, such- as in business
raw material regulation; Says the
in short supplyl,
statistics, information on market
Arrangements
k
/
/ ;
/preparatory Commissioii^.of: EXr
•International Raw Materia J XThisis a- short history of "gen¬ cdhditioh^/unifietl rules ,for* pay¬
& i>£rts for the London /Economic
eral principles"' concerning inter¬ ment, standardized transportation,
Agreements continiied' tb be con-*
Conference of 1933:
insurance, etc.
On a still higher
eluded. and
enlarged.
In
1938 national-regulation bf /raw/ ma¬
land

contribute to a continuous clarifi*
cation of the ever-changing world
conditions in wheat.
'

from the inter¬
angle—is mainly^an
Argentinian export problem. In-^
ternational market-schemes; havf
thus far not ,yet> been-necessary,
Corn—as seen

national trade

;;

•.

Cotton

,/./{

*•

International Cottoii
Conference of 1939 in Washington
created an Advisory Committee
first

The

with the "task to ? observe and
keep in close touch; with the de¬
velopment in the world cotton
-

situation and to suggest any meas¬

considers suit¬
practical for the achieve¬

the Committee

ure

able and

of
ultimate international
collaboration." It is possible, that

ment

next years more

the

concrete

provisions will be worked
though probably not with the
of

cotton markets.

and

Tobacco

fields

the

out,
idea

of the

worldwide regulation

.'-,./

;

Petroleum
of

tobacco

and

petroleum a few big enterprises
a prominent influence in the
international market.
Only some

have

regionally limited, cartel arrange¬
existed before the war.
Should the Anglo-American Oil

ments

Agreement be ratified.by the Sen¬
ate, it would still* remain a fragment since neither Russia, France,
nor other
countries; are thus far.

consumer
participat-v
ing.
After ratification, it may
serve
a$« a useful platform for
study groups. / The Board of Gov¬
ernment Representatives advised
by; private "companies/ and other
experts may take cafe of media¬
stories
about organizational; level were cartels tion and perhaps arbitration of
American firms joined the Euro¬ terials./ Concrete
/:/We( consider that generally
loose-knit
and ■ closer-knit— frictions which are traditional ill
/ speaking international economic pean Steel; Cartel.
Between 1936, internationally (vital raw materi¬
als are more revealing.
gentlemen's agreements for mar¬ this field, as the Iranian dispute
and
4 .agreements have more chance
1939; continuous conferences*
and the Venezuelan recent re^ket regulation, conferences, etc.
lution demonstrate,:
^,©f success if their, formation;' is took place;'in; London aiming at
The Internationally Vital
Cartels - were mainly private.
left to the initiative /and free whale oil regulations and many !■■&/
Argentina

•

■

—

•

if- discussion

producers

01 her

con-

commodities.

When

Raw Materials

They Were partly publicly con¬
raw trolled, although mostly by insufficent techniques.
Some—as fn

The most representative
March 19391 the famous Duesselrepredorf
Agreement for industrial materials of international impor¬
> sent an already advanced stage
tin, rubber and tea—were backed
cooperation between British, and tance can be seen from the fol¬
^>pf industrial organizatibn. or
sponsored, by
governments
German organizations was
con¬
/. ; When the Conference in Lonlowing table (see Benjamin Gra¬ (mixed cartels).
Very few were
cluded, Prague was simultaneous¬
jflon broke down after the devalu¬
ham:
World
Commodities
and purely governmental, as in wheat
ation of the dollar, the Sub-Com- ly invaded and Hitler's war ma¬
and coffee.
chine began its march into East¬ World Currency, p. 44/45):
yKuttee on Conditions of Produc¬
The war interrupted the opera¬
ern Europe.
tion and Marketing • may ^ have
Agricultural /,
tion of free exchange markets and
••become aware of the uncertainties
World War II brought a com¬
(excluding Russia and China)
the functioning of most raw ma¬
World
-Of joint economic operation by pletely new phase in the. world
World
terial
cartels.
The reestablishProduction
Exports
The Com¬
governments, and of the fact that commodity situation.
ment of freer market conditions,
1937
1937.
the
laudable
intention
to
fix bined. Raw Material Board, form¬
(value in million dollars)
looser understandings,. as well as
prices which are equally fair to ed by the U. S. and Great Britain Wheat
4,325!
709'
international cartel? regulations^
In;, cooperation; with Russia:; and:
Zlboth producers andcohriihmrMril
private and governmental — are
solves problems which sometimes China, replaced the
previous free Cotton
1,954
891:1/ still unsettled "questions. In the
approach the squaring of'the- cir¬ markets and market; understand¬
Sugar
i;430 fe/
; 685 /
past, functions. arid achievements
cle. Numerous private, semi-gov- ings by government bulk-buying. Tobacco
1,233
386
of such regulations show a great
4 ^mental and governmental com- The Board promoted "allocations, Wool
1,0841
720
variety.
^apodity control schemes have been
Rubber
; '472 {/
•' - 472:
maintenance and "increase of sup*
The Wheat Agreements
field

^/cerned, for whom they

——

'/J

.•'

Sugar

sugar regulation
successful/in the past^/

International
was/more
After

same

abortive attempts, the

Agreement of 1937/was
signed by 19 governments (China,
France and Yugoslavia did not
Sugar

ratify it). The free sugar market
represents only about one-eighth,

The
produced and marketed 7
under tariff protection, Subsidy,
preference and other national re-,
.strictiohs; /The agreement thtte f
of world sugar production.

rest

aims

practically—as /The Lbhdoii/

''Economist" recently put

■

|formed since 1933.;/ In

the

Coffee

ply,

I?^^^^^eel'suSar»timber,
ifBtC#
agreements
-

concluded

were

in Tea

conservational? economy

coordination of the various

use,

327?

——

232

Cocoa

223

™...

;•;;;;

ffhis advertisement is not, and is under
securities for

sale

no •circumstances to be construed as, an offering of these
solicitation of an offer to buy any of such securities.
offering is made only by the Prospectus,

or as a

The
v

<'It

-,i,/

jT-'utj

"♦

*f'\,'ta

85,600 Shares

^t>? [!>'

i',

(An Illinois Corporation)

'•

/LUmfilfltOJl':

'
"S*1

//;

Copies of the Prospectus

may

/ •

crops

began

won." However, wheat relief—as

Price $9,625 Per Share
/a

wheat

J-

'V1

^
t

be obtained from the undersigned,

|B|||Brailsfbrdl& OolllM

Tea

ui-'! /1

•

mains

likewise doubtful whether

the other provisions of

("]

.'ty-b

the Draft

Agreement (Production Control—
Stocks—Export—and Price Con¬
trol) will ever be put into opera¬
tion in the original form/
They
will

possibly

included

version in the General
Organization of the United
Nations, or replaced by the crea¬
tion of a mere Study Group, with
Food

possible surplus capacity/ill

provided for in Article VI—was the long run. At present, how- /
neglected and is handled now by
ever, as the tea gardens in the ,
politically backed government
Dutch East Indies appear to; have/
and
intergovernmental agencies suffered substantial war
damage^
for the emergency period.
It re¬
there is

Chinese

acute fear of surpluses',/

tea

enter /
larger de- A
gree than in the. past and possibly /
join the cartel after new nego-f *
tiations.
/ -• '
;"••-•/
/ |

the export

growers

market to

may

/'•/.;/;,//.Beef and Wool Z;://:;/
Similar to tea, the regulation of

modified

June 17,1946

regulatiorii
The Interna¬

In* tea international

however, discussions about regu¬ Will be continued. ;
lation, of wheat started again, but tional Tea Committee, created ira
were interrupted by the war/The
1934 as a private arrangement of /
ambitious draft of the Interna¬
tea associations, being backed by
tional Wheat Agreement of 1942 is
the producer states, is generally,
considered as a model for other
regarded as one^of the "good car¬
raw materia! regulation^ by gov¬
tels.'/ It modernized, stabilized /
ernments. As an official interpre¬
and expanded tea production andl:
tation by the Department of Agri¬
blending, and it satisfied its main-;
culture said: "It shows one of the
ly British consumers. New plant¬
ways in which the peace may be
ing may remain restricted in view /

($1 Par Value)

shdrt

eliminate the surplus danger.
In
view of the bumper crop of 1938,

Common Stock

During: tho/ war/ the agreement/
The Wheat Agreement of 1933 continued to exist nominally and |
was a failure.
From the begin¬ may now be revived. The actual!
ning the coordination with East¬ negotiations between the Unitedl
States' and Cuba - concerning ,tho?Z
ern Europe was insufficient. Rus¬
sia participated from /the begin/ Cuban sugar crop for 1946 and!
ning
with
strong
reservations. 1947 will facilitate future regula-!
Since 1934, only an International tion of the remaining free mar¬
Wheat Advisory Council survived, kets on a worldwide scale.
"

/Harrison Wholesale Company
■

327:,

equating /the exports of ' cheap.
sugar
to the import demands,1
limited by the protection/ beinggranted to high-costproducers,

Beef and of

Wool, is mainly lim-

ited to British Commonwealth in-

•

terests, with Great Britain being '
main- importer; The meat

advisory functions; hnd/toe/task to the
•:

:-V

t.'lbr-/-V

*j;:.•/-.•;/•/,/••■ ■■:'.

•■»..«.

»-•*

V.i

( : c

* : *

•

.*.

*/••;■ '/•

// //•'/*/ :!; //!

•

'/.

:$0
v'
0M&!$
(Volume 163
-U

Number 4500
*''.

000-'' 0:
0 ;■■
:
-'vi'

■" ■■■''';

■

337f

•*';*«;•''/'v '

Another

difficulty is the unclear
between the-ipublic
interests ; in - the cartel, which are

South Africa..

presumed to be ^represented by
the contracting governments, on
the one hand, and, the: interests
of the private combine in Lon¬
don and the Netherjand. Govern¬
ment, which directly pwiis .73 % of
the capital invested* ;iju Jm iri tke

The In¬

ternational Wool Textile Organi¬
the

wool

set-up,
buffer

London

will

represent

consumer^ within; this

Whether
stock

will

permanent
created

Dutch

'■

The. Member

R'V '• ».)%v.. '

Member

the
.

are:

■:•

;

-r

■

,.y:•.

markets with a quota of
perhaps 70-80% (including the old
British quota), instead of a 28%
pean

States

•

Governments

European Cartels

the

Belgium,

borderline

.•> v V-:y

•

ends

■■

Den¬ quota which Aluminium Ltd. had2
mark, France, Greece and Neth¬ in the prewar European Alumin¬
In other raw materials Euro¬
erlands, • Norway,
Turkey; the um Alliance.
'7
pean cartels will' possibly be re¬ U.K. and North
; As a matter of fact under the
Ireland, and fi¬
vived, as in potash, nitrates and nally the U.S.A.
Should Great aspects, of a long run Foreign
sulphur.
In
woodpulp political Britain be able to coordinate a Economic
Policy- the aluminum
influences will remain important,
future export capacity of Ruhr position, ;of ■ the * .U; S. A. seems
but
under quite other
aspects coal and steel AVith its own
export somewhat confused and danger¬
than in coffee. Besides the Scan¬
interests in ;thii: Vital field, some ously weakened. Within the coun¬
dinavian and three Central Euro-, of the
heavy losses of the British try the Alcoa ^ case represents one
pean countries, Russia was tradi¬ Commonwealth in
other parts of of the most important cases of
tionally the main producer Und the world would be compensated. anti-trust action.
The final de¬
exporter of woodpulp. Whether' in
cision is postponed until the res¬
Bauxite and Aluminunv;. ;;
postwar times paper pulp will be
toration of a competitive situation
cartellized again in Europe, as it
In bauxite and aluminum a de¬ is
attempted by disposal of the
was before. the war, will
mainly velopment; of similar importance governmental surplus plants. From
depend on the future Ttussiah c^y-; begins already ; to function, al¬
the international angle this could
tel and export pplicy.
Russia is though hardly noticed and public¬
develop in a vainglorious victory.
—in principle—not at all inimical ly discussed. Aluminium Ltd.—the
Even the establishment of new
The Revival of

these

Governments shall.

for

stabilization will

a
London Wool Conference, in
Spring 1945, accumulated stocksiri
Wool are entrusted to a'.new sell¬
ing organization jointly formed
foy the U. K., Australia, New Zeal-

"To

simplified exchange mechanism
imports and re-exports in
sterling.
V

ian economy, is an open question.
probably include It has occasionally been suggested,
the important meat exports of that the International Labor Of¬
'Argentina as it did in the past fice should take over an advisory
'since the Roca-Runciman Agree¬ supervision in view of the social
ment of 1933.
It. shows the polit¬ implications invqly^
the
ical importance oL suc&'Regula* better- solution -mayd special
tions. Just when the: tensions be¬ arrangement between the United
tween
the
United
States
and States and ;B^yiillnItbei.frame?:..
Argentina were at -a peak, the work of tbe;4nternational Regula¬
'Shaky ..ArgentinianrBritish^ Beef tion. The American-Cuban Sugar
Agreement was prolonged. Since Agreement could serve as. a model.

regulation under continued price

land and

'
,v:\f

zation

■

CHRONiCLE

THE COMMERCIAL & FINANCIAL"

towards raw material

East-Indies,, on; the other

^regulation

;

Canadian sister of the American

competitors and even the dissolu¬
noAV ; the most modern
tion of Alcoa AvoUld: not solve the
tuda'^ih suga^;iujhbfei^l|hatinum, and niost efficient aluminum pro¬
international aluminum problem.
etc., has shown, ♦ in, spite of its ducing company in the world.
Redistribution of the high5 grade
ernmental business interests with¬ enmity against privateimonopolies.
According to recent statements bauxite reserves of the world will
A more active par¬
wool could take 13-14 years if no in the cartel.
(see
e.g.
"Fortune
Magazine" have to prepare for'an interna¬
Coal and Steel
considerable price adjustment is ticipation of the U. S. manufac¬
March 1946) the Canadian com¬
tional coordination of alum inum
An extremely complicated and
made under freer market condi¬ turing interests will be justified
bine has now a greater produc¬
production and bauxite mining
politically involved raw material tion
under
the
tions.
A similar antagonism be¬
aspect of the new
capacity than the American adequate to the vital American
problem is connected with coal Alcoa.
tween governmental and private American tin smelters in Texas.
Its
production costs of consumer interest.
the

;

he wScontRol^aiTangaR: oh

hand.

Joint Disposal Organiza¬

new

AyoHdwidCbhsft

its atti; Alcoa—is

ment should

clearly separate pub¬
lic control from private and gov¬

tion is still an open xjuestion. .The
task of liquidating the enormous
stocks
of
the
Dominion-grown

and steel. The future Ruhr

policy 7-8c per lb. aluminum ingot com¬
May we finally mention, that
importance in pare with American costs (includ¬
uranium, too, is an international
The newly created
In rubber even .more than in. this field.
1 v
'.£■ Cocoa\, ing those of ^ Alcoa) of about
raw; material, the
regulation of
European Coal Organization (Lon¬ 10-llc. About 50% of the high?;5 Cocoa is not
yet one of the big tin, vital interests;, of, the;U. S. A.
which hag been widely discussed
don Jan. 4, 1946) is the begin¬
are involved and have enormous¬
international raw materials, ^ al¬
grade international bauxite re¬
in recent :monthS7^thus far with¬
ning of a new European coal, serves-are; iri
the^bihit of^ the, Brit¬ out visible international results.'though in view of its great nutri¬ ly increased during*ther war. The
u '•"^
1,^
tion value it should; hecoihe i a XJ..S. A, always was the largest cartellization, a plan which was ish r Com^obAvea^^
discussed without any result for
consumer !of|rubbefeh^feh, came
U. S.A.,r thei greatest: aluminum;
The Future of Governmental f ;
^imrnter one^itemi^Bl^isugar. ^Bx- almost exclusively from Malaya, 20 years. Whoever appreciates
consumer in the world (at pres¬
;pansion of production:arid' conCommodity Agreements"
traditional
the Dutch East Indies and Ceylon. the
refined
British ent
about 75$), has a share in !'0y )00:',^?>Vi-.i • 0 ;0
•sumption is fieretfcyfarrriore im*
A remark with respect to "gen¬
In view of .the. new. American language
in Foreign Economic these raw materials of'3%^ Alu-»
Jjportant and, "restriction"' more
Policy will enjoy Article 4 of this minium Ltd* in Canada—not Alcoa eral principles'- may' conclude this
'detrimental than in tiii~or copper synthetic > rubber Jhdiisfry, the
short survey.
whole rubber situation has com¬ newest international Commodity which has. been
Some experts forqr
or even in coffee and tea;' Public
isolated, or; has
irresistibly
increasing
changed/ In .1946 the. Agreement which reads as, fol-~ isolated itself from the rest of the see v- an
interest should therefore watch pletely
U.S.A. will need about 900,000 tons lows:
\
world as a consequence of the tendency towards stronger inter¬
the postwar policy in this field
national raw material regulation
of which 700,000 tons can" be pro¬ ; "The purpose of the Organiza-r anti-cartel
measures
expands
.and the rising British-Amefican
duced synthetically:, vvithin the tion is to promote the supply and now within the British Common- and governmental commodity
antagonism with keen attention.
agreements.
Har o 1 d
Gratton
In November 1937—as a result of country in favorable competition equitabie distribution .of, coal and Wealth its international aluminum
with the Fast East, whichxhas id; scarce items of coal mining; sup¬ interests to South
America (Bra¬ (Barrens Jan. 28, 1946) assumes
a buying
cartel 'entered rintoi iri
recover from the Ayat- damages. plies and. equipment, while safe¬
that new worldwide commodity
zil; Argeidihk,;etc.), the: Far. East
respect of Gold Coast and Nigeria
Assuming a world consumption pf guarding ks far as possible the in4 (Chinas India, Australia) and in controls are likely and that "Wel¬
cocoa" by ail but' •' brif European
fare Economics" alone will be the
terests of "both producers hnd coh-^:
Europe. The British—not yet the
'trading firm-Haprotest perhaps:lA :inUUbmtons for 1948,
key Vlo> international; regulation
American; consumptipn^.may ; be; sumers. With this object the Abiericab^li^ihum;c^
^strike of the cocoa #odUcers^was: more than
Other experts are
900,000, which could council shall keep itself con¬ aircraft and ahtothobile produc¬ and progress.
'temporarily started. In the first
mainly be supplied from domestic stantly acquainted with and, when tion—has the advantage of the highly skeptical.
They feel that
transport confusion of the war
industrial plants. Under such con¬ necessary, discuss the situation in
experiences with multilateral in¬
recerit reduction of the aluminum
considerable
stocks T have ; been
ditions it was understandable and regard to such supply and distri¬
ter-governmental commodity ar¬
ingot price from 15 to 12 cents
"regulated" by destruction, while
necessary that the U.S.A. send for
bution, disseminate information in fixed some months ago by Anglo- rangements'^ ,have
the governmental Control Board
the third time its representatives
limited than extensiye, arid thai
And after
finally concluded its operations
regard thereto, and make appro- Canadian agreement.
to the joint meeting of the "Rub¬
the recent dissolution of the Euro¬ on the whole they gave warnings
.with a profit of. 3 -jnillion. pounds
ber; Study Group" in Londop, priate^ reponunendatioiis tp the pean Aluminum Syndicate, a new rather- than; promise. The publica¬
sterling.
The idea of a recent
which in case of ari arrangement Governihents concerned and to British-Canadian aluminum cartel tion ' of the International Labor
British White Paper to continue
will then .continue, t<? function as
any other' competent authority,
i - may govern the expanding Euro; (Cbntiriued on page 3.372)
.^governmental wartime regulation
a; npw intergovernmental rubber
: lias; aroused strong opposition by:
market interests arises in cocoa.

w„.Rubber

•-:

..v.

will be of decisive

i'.-Vv#.♦

-; I

„

■■ •:

•

—

■

•

^British and; Amei$caiRei£tto§. 'trad¬ cartel.;;^>;/.i 1
ers as

well as. by consumer inter¬

Coffee

decision lies in
certain degree
£ in the hands of public opinion
which should protest against new
restrictions of freer marketing as
ests.
The final
! London—and to

was

primarily

lem.

The

;

during the last

"W;

;;

Coffee Agreement of

American

5-''

•

Liverpool.

Tin

not

■

—r-

•

*T7

:—:

r—:

——'——;

——?

'■

—5

matier of record only and is under no circumstances to^^

construed asan offeringof these securities forsale/or as a ^solicitation ofan offer

to.bufrany pf such securities. The offering is made only hy thet Prospectus*
new. issues

and
states)

>■

•

;

-■

.'"'•• -'i

I. *L:

...«

•

•*

.ij-y '<■. •

n
"-i

Chefford Master Mairafaduring Co., Inc.

a farsighted
Neighbor
Policy,
which
helped the producing countries to
sas an organization of the interest¬ overcome the loss of the European
Ayar.
The
ed Governments (Malaya, Bolivia, markets,. during ; the
Butch East Indies, Siam, Belgian price of Santpk 4---tbe mibst; popu¬
iCongo, Nigeria and Indo-China), lar Brazilian coffee, variety-^was

ically inspired act of

Good

The International" Tin Commit¬
tee in London worked since 1931
i

This advertisement appears as a

purely economic "re¬
strictive" cartelization but a polit¬
was

•

;

coffee producers

If t didr-though in. vain^when the (Brazil, Colombia^
% government ordered the'closing. 6f some Central American
the cotton exchange in

years

Pan-American prob¬

1 "

•

.;C

between^the"U.S. and the

1940
Latin

—.

■■

••

;40,0|[0 5^0 Cumulative Convertible Prefewed Shares
Par Value $25 per share

■

-•
t

''j:

■:
•1

"•

Price $25 per Share

and influ¬ raised from 6.75c in 1940 to 13.38c
smelter interests a lb. in June 1942. For the Amer¬
in London.
The Anglo-Oriental ican consumer it amounted to a
Hining Corporation in London, difference of approximately $100
In coordination with,

enced by strong

r
4

•

<■•••'■.

'.v.-;-

."V c/ -"vi^t

• ••-v

'ii:

*•'00'''i'- -

.:
r\

•

Hhe by far largest private tin comr

toinej includes also Bolivian fnte^
Rests-of • Patipo^The •'Jriterftatiori^l
♦Tin

Committee -was the first in-

^ternatlonal^cailtel:which skillfully

;

: V-0.0.
t

: *i.

^nd successfully used the buffer the re-opening of"the European
stock device. " In March-1941 the coffee ; consumer = rmarket, priceinternational. Tinj Committee met raising trends and- some tenderito consider its future policy. Bqt .cies to. shift the center ; of: gravity
before the ,end of the year the from the political coffee cartel

: u

40,000 Common Sharesi

■

v.'•

•'

'
'

■

The

cartel

was

always

strongly

Interests of the highest-cost pro-

'ducer, Bolivia. On the other hand,
vBolivia V is'V an*extremelypoor

^country,*and tin is its main source
income.
How the American
.consumer
interests
in
cheaper
though stable prices can be bal¬

?cf

anced with the

■: "

■

-fi

•

» r -

.-r •

■'

f: J

v^'.v^'-vA

fpV *Vi- ^-'-.0

•*'^ S\f>1"- \ ?
-

J* r"'

j,;;'-.

i
'"-T-

wv,"

signed only as are registered dealers in securities in this

Coffee
United States

...

:I I

t:-'?-;

■%>.?;■

Copies of the Prospectus may be obtained:from such of the under*

thp Pan Ameri¬
Bureaij, p| AVhich thie

State.

':
;;

is not "a meinber,
shows that the basis of the polit¬

ical

coffee;

has to. ■ be

arrangement f of .1940

zation of coffee

lition

Cruttenden & Co.

revised.; -.The revision

will have to include

a new

stabili¬

prices under abo¬

Newhard, Cook & Co.

of the present

coffee sub¬
system which required al¬
ready more than: 50 million'. dol¬
lars.
There are finally indica¬
tions that the international coffee

sidy

market in London will be revived
as

June IT, 1946;..

the British Coffee Trade Fed¬

succeeded

in -getting

Julien Collins & Company

A. G. Edwards & Sons

ne^ds of the Boliv- eration

V
^

jcriticized *;by h economists;; and
^American co^umers; becahse;: ij;s
jprice level was! adapted;to the

Par'Value •$4" per #harO

'001

scheme of .1940 to
can

Price $10.50;per share

Japanese assault in the Pacific
changed
the' situation^ Recon¬
struction of the cartel after |.th^
'war will face intricate problems.

naillion while the Good Neighbor
Policy ^flourished;
Avitb; rthe
war. being;
ovfc£ a:fundaihentai rp4
vision of the whole partel wiir.be
inevitable.The ^expectation of

Bateman, Eichler & Co.
.

...

— -

■—-

THE COMMERCIAL & FINANCIAL CHRONICLE

3372

Difficulties of Raw

M Outlook for Interest Rates

Material Trade Control

i'Z XContiriried from Jirst page) [
tors determining the course of in¬
(Continuedfrohi page;337|) 7
terest rates. During jthe war; the
Office in 1943 on "IntergoVernconditions pf demand and supply
mental Commodity Agreements"
in the security markets, as in any
is more optimistic,
Anti-cartel* other sectors of
7 the
economy,
; lists, on the other; hand, are be¬
Were of an altogether unusual
wildered and suspicious in view
kind. From Pearl Harbor to early
/ /of new
plans * for International this
year the 'public debt roSe
ecartels * even if they sail under the from 64
billion dollars to $280
governmental flag,
billions. This enormous increase
if ' Under special conditions—eco- in the
supply of securities was
nomic or political—international
made necessary to pay for some
understandings in raw material
60% of the war cost which was
I

•

problems may prove inevitable.
The proposals of the State De¬
partment of, November 1945 ; to
which we. referred in the .begin¬

ning, recommend in, Chapter CIV
coercion of "private restrictive
%.

business practices"; while in Chap¬
ter CV Governmental

Commodity

J Arrangements are provided for*though under, strong reservations..
The
cautious and ^ complicated
language of the suggestions hints
at

provisional compromise be¬

hind the

American

scene

between

diametrically
opposed
opinions
and ideologies.
To deal in more

;;lr/detaiied'iorm;.^th;;thdfpr,<5posal^
rv;is beyond

the'scope of this study.

They will be oh the agenda of,the

r.jfuture
on

International

In 1946.

;•

Conferehce

Trade and Employment, which,
is hoped,v wiii still be held

farther

The whole subject heeds
factual preparation and

not covered by

taxation,

At the Same time;/there was
also
vast. increase
in funds
;

available for investment in Gov¬

S&mrities. Wages/ Sala¬
farm incomfes and -profits,
allowing - for deduction of
income taxes, rose from an annual
4&te!df littlbriver $9?hiUiori&to a
rate of well over $1.40 billions.
As the supply of civilian goods
did not increase during the war
years and prices were held fairly
stable. Savings,?ahd hence the de^
mand for investments, rose sharp¬
ly. As the economy moves along,
these factors keep changing with
it. Of the $216 billions increase
in the debt, over 50% was ab¬
sorbed
by this investment de¬
mand Outside the b&riks. The re¬
ernment

ries,

after

mainder

was

absorbed

banking system.

;

demand

combined

the

To adjust the
for

securities

preliminary frank discussion as to the requirements of war fi¬
picture asa nancing, the commercial banking
whole is fraught with consider- system, for this purpose, was sup¬
Sable difficulties and imbued with plied with the necessary reserve
,v-i«
emotions and highly political im* funds.

^ the; international;
■

Thus

Summary and

Outlook

Experience with
purely governmental cartels, as in
wheat, is poor;, The success of
the Coffee Agreement of 4940 was
;
tnainly political.' A growing governmentally controlled coordina¬
tion is nevertheless indicated in
acme fields of international ,agri: culture—as
in sugar.
Cartels on
aRiiorfc private, basis, such as in
tea, Steel, woodpulp, etc.-, worked
Relatively well, under, given cir?
cUmstances.
"Mixed" cartels in
To

sum

up:

raw

materials—this means elastic

interrelations

between

govern¬

implications;,

have

for

the

war

period a vast increase in the sup¬
ply of securities, aceompaihed by
an equally sharp rise in demand.
On balance, the two factors tended
to

each other

offset

and

was

possible to maintain interest rates
at a fairly stable level. Hates on
Government

securities

ranged

3/s% on 3-month .Treasury
bills to 2Vz% on long-term mar¬
ketable bonds. In fact,iduring the

from

corporate

and

other

securities

interests such narrowed during this period as a
as in tin—will need iclearer dis¬ result of the decline in yields on
tinctions between public control corporate securities; interest raids
and private business. Conferences, on loans also declined.
looser associations, "Study groups
The Transition Period
and governmental advisory com¬
mittees are perhaps the future
With the end of the-war, there
form of elastic raw material reg¬ was a rapid change in the financ¬
ulation in the international field. ing picture.
The Federal budget
All these devices, however, con¬ has tumbled from its wartime
tain
some
germs
and inherent peak of annual expenditures of
-dangers of monopolistic abuses-*- over $100 billions to less than $40
governmental schemes not exclud¬ billions. The deficit has well nigh
ed—which can dhly be exterm¬ disappeared, and by the end of
inated or avoided by an alert pub¬ the year we should begin to have
lic 'control; hdhiiiii^trative *and a cash surplus. - The increase in
'
judicial, Detailed propositions for the debt has stopped, and due
! ; such an international cohtahave, largely to the ctrawih^ down of
41 been recently published
(Milo Treasury balances it is being
reduced at a considerable rate. On
7 Perkins in "Harpers" 1944 p. 578;
Haussman-Ahearn in "Thought" the supply side the situation has
thus eased a great deal. The prob¬
March 1945 and others).
An International Cartel Control lem which was one of rapid debt
mental and private

Office—including mediation and expansion has become one of re¬
ultimately court decisions—could funding and retirement.
prevent monopolistic cartel reOn the demand side the change
strictions.
of

;

It could develop rules

trade

practices whereby producers, distributors and consum-

Since

The level
of income has remained extraor-

has

been

less

drastic.

savings arenOw at an annual rate
of about $20 billions, as
against
$7 billions in 49404 The/deriiarid
for Government securities, simi¬
larly,, should be sustained by the
existence of the huge volume of
liquid* funds which has been
,

created in the

course

high.

Notwithstanding

direct;

resppnsibiIity;!;4or/

■them/'i'This-! was ;obvious diinng j
the

war

when the vastly increased

stipply of securities;was balanced
controlled increase of bank
rivailablri/tq^ such invest*
hient^ - Because of; this ;pblicy^$
by

credit

which assured that securities not
sold outside the banking system

would be absorbed by bank pur¬
chases, it was possible to finance
the War debt at a low " interest:
rate. Now the problem is to pre¬

of wartime

of" credit,
heeded.

policy, therefore, is
borrowing from the commercial
banking system. The volume of
Several
methods
have
been
demahd /deposits; 4tadjtisted)7 and
proposed and are being carefully vent further additions to b^nk
currency alone increased from $39
billibtts iri 1940 td $130 billiOnS bR studiecL?43omri/Would! directly/or holdings of securities and hence
the end of April,44/
/ V. r; Indirectly increase' commercial tp^ the! toUritry^-mai^
But here is where the inflation bank demand for short-term se¬ end -if pbssiblri?4d deduce 4hem^^
We must do so without raising
Jhe
problem enters the picture. Even curities, either by requiring com¬
urider. the most favorable" pros¬ mercial banks to hold secondary taxpayer's interest bill. While the
reserves in the form of those se¬ probl^s have
dhariged,they have|
pects for full prbdiictiott, thd sup¬
curities Or by limiting the amount not become simpler.
The iihp'or- 4
ply of goods for Lottie 4hhe is
boniid ;te remain Scarce relative
to demand. Inflation pressures are

tance

ribMs4^t/the^^

of a

wise

credit and

debt

policy has been greatly inerieased
by the wartiirie debt expansion.

strong. If We can Seryb ^mtehases!of shbrtrtbihR se¬
curities by increasing the reserve
An intelligent^ opinion concern¬
if we can avoid
the vicious spiral of price; and requirements of member banks. ing the outlook* for interest rates; j
These plans have disadvantages
wage and price increases, there
is every reason to hope'^hat pres¬ ■As/^R^s:.Mdvahi|tges4^None>hf judgment as~to the net effect -on
them should be put into effect interest
sures will relax within a year or
rates of many policy prob¬
bound to remain

hold them in rein,

until we are sure that the advan¬

the other hand, we fail
if we give the investor tages clearly outweigh the disad¬
any reason to fear that the pur¬ vantages. Congressional study arid
action is a prerequisite. /
chasing value of his security hold¬
In the meantime, retirement 6f
ings is threatenedK by; upward
spiralling prices, the; entire de¬ Government debt is anti-expariAs long as this retiremand side of the security market sionary.
Will bri mOst seriously threatened: merit continues, the problem of
Already, there is ari' overflow of bank credit expansion becomes
urgent. This gives -us a
funds
into
speculative
invest¬ less
ments, hhd capital yaluesinmahy breathing spell In which to study
the problem. The development of
lines haVe reached inflationary
levels. This is true especially in a substantial budget surplus would
so. If, on
to do so,

lems

thatr

confronting

are

Government

the

the.
present time and of many cross¬
currents arid

authorities

unpredictable factors

in the demand and supply aspect
of the problem..
The only con¬

clusion of whichf

be rea¬

may

sonably sure .at this time is" that
rates

short-term

Government

securities

a're not likely to rise, !
long as short-term rates
Stay ;down* it; is Rmlikely4that/
long-term rates will increase to
go a long way toward'solving this, any significant degree.
the*real estate,market, both fOr
SomO of
urban hnd rpidentie44^«®featfi&' problem, because it would permit the wartirae factors bringing about
The prices of low-cost houses are the Treasury 1 to continue to re- declines in
longrterm rates no

generally 65%, and in many Cases iduce the Government debt. While
I hope that the inflationary prob¬
100%, over their 1940 levels. Also,
there has been a steady iriffeW lem on the monetary side can be
of funds into the stock market solved without the need for em¬
and

during the paSfcw-T2
increased; by 30%.
All signs show that strong infia:^
tionary pressures will Continue.
prices

have

months

ploying
would

any

new

restrict

the

method that
operations of

commercial banks, I believe that
the prudent course would be to

and

longer exist, but others remain.
It may be necessary; to adopt ritew
measures to avoid a further decline

hand,

play in preventing a further in¬
crease in, and if possible, in re¬
ducing the money supply at this
This

time.

further

avoidance

means

increases

bank

credit

and, if possible, a reduction. The
Treasury in this connection has
embarked upon a program

;

The Longer-Run Outlook

Over the longer run, developriients defy prediction. Assuming

high level of business activity,
we are all striving for, sav¬
ings banks, insurance companies
and other savings institutions will
U;isubStentihl accumulation
of funds to invest^ Over the war
period, these funds have found
outlet in Government securities,
and since the Government is now
embarking upon a debt retirement
program, this source for investa

which

of re¬
tiring debt out of the large cash
balances that were built up during
the Victory Loan. The cash bal¬
ance remains sufficiently large to
riients will not be available.
continue this debt retirement pro¬
gram

the

over

months.
tired

next !/ several

The securities being re¬

of course, short-term
maturing issues, which are largely
held by commercial banks and the
are,

Federal Reserve Banks.

have
bank
-

The

also

tightening

This will

effect

upon

reserves.

Federal

has

System

the

discon¬

announced

tinuance of the war-time prefer¬
discount rate of Vz% inn

ential

short-term Government securities.'
At the

that

same

time the Board stated

does not favor a higher
level 'of interest rates on U. S.
Government securities than the
it

long-term rates.
With,
this exception, therefore, I think
it hazardous to venture an opin¬
ion. I would be inclined toRrgtee
with the prevailing opinion that
long-term intcrcst rates over the
prixt six: monthsdo ri -^rtwoiild*
be less likely to increase than to
!-r

Australia to Pay
: 1
U. S. on Lend-lease
;

Australia ;hds kadri all

ment

a giRethe United States'
in settlement of her :

pay

$27,000,000
lend-lease

account,

Associated

Press

Washirigioir

stated
7, thus becoming the fifth.!
country to wind up its lerid-iekse
obligations to the American Griv-/
advices

June

ernment. Of the

five, Australia is!

the first to whom this country has
not had to extend credit to make1

settlemw!t;pussible4!/

*/" *-t
Great Britain,
India, France and Turkey, all re- ;
inarket yields of existing Govern¬
ceived credit teriris ranging up to
ment issues, and v^ill force a low¬
20 years to settle their accounts. > ;!
ering of the long-term rate unless
The total value of lend-lease,
the demand for long-term funds
by
corporations,the
mortgage mostly war equipment which thei
lending field, the jJYorld Bank, the United; States sent to Australia

funds of these institutions, there¬

fore, will exert

strong pressure

The

other four,

others duriri^!|o\nr:yearspf yrar amount-?!
It may be ed to $1,300,000,000, while Aus¬
desirable in this eorinectidri to d0- tralia's ^reverse t lend-lease con£fI

Export-Import

Reserve)

The

develop a new method of influ¬
encing bank credit and have it
must use all our
ready for use if the need for it
powers to stem inflationary forces
should arise.
Prudence, caution, remain stable.
until production has time to bring
and proper timing are of the es¬
VT?"
about a reasonable balahce be*
sence.
>
r

iitriatipfr! sbriuKflei1

out of

dinarly

an expansion of -bank credit
dangerous at this time Of in¬
flationary pressures, some method
should be devised to stop this ex¬
pansion,' The. orthodox, methods
of
influencing thev level credit
cannot be used, however, because
they would no doubt result in a
higher level of short-term inter-

part of the period there was
strbng market pressure for inter¬ tweeirthe'/factOr s/bf 'Supply/and
est rates on medium-term and deiriarid.' * Monetary1
policy -^hnd
long-term Government securities Federal Reserve policy has an im¬
to decline, The spread between
portant though secondary role to
latter

Thursday, June. 20/1946

offset those

Bank

and

pressures.

visO

Spedal Ibn^term rion-negotiable>Goyernment-;issries4^som|iwhat similar to th| F and G bonds,
which

will

tional funds.

attract these institu¬
In

vjew of the back¬

log of demand f^r goods both at
home arid' ahfoad^and iri view of
the demand for Sousing,; I would
venturri • -an? opifribriv that; .while!

tributions totaled $920,000,000.*

Redeem Cuban Bonds

Republic

Cuba,

through*

Reinaldo Fernandez Rebull, Con¬
sul General of Cuba in New

York

City^/is motifjnng holders of 4tsri
paying. As¬
External Loan; Thirty*Year^irik^ I
an enduring production record since V-E Day
surances have been given that the
has
belied
the
pessimists and rate Of % % on one year certifi¬ there may be pCdods of fluctua¬ ing Fund 5 lk % Gold Bonds Issued: |
peace is the liberation and expan¬
surpassed most expectations. Pro¬ cates would be maintained.
In tions, the demanfend supply fac¬ under Loan Contract dated Jariu- i
sion of world trade.
An indivisi¬
duction during the mdnths be¬
practice that means that the Fedf tors might be approximately in ary 26, 1923, that $1,133,400 prin¬
ble part of such a policy is a fore the coal strike was higher
eral Reserve from time to time balance at the pi§sent level of in¬ cipal amount of the bonds have
been drawn by lot for redemptions
f rigorous and impartial cartel con- than ever before in times of peace. needs to purchase short-term se¬ terest rates.
'
If we manage things at all well
on July 15, 1946, out of moneys in.
curities in the market in ordeR to
i
trol policy in international raw
in
the
the sinking fund, at 100% of thfeir
months ahead, finished
f
Conclusions
prevent short-term interest rites
material trade, but hot direct gov¬
So iaiv we!havAjiealt
products wil be flowing to the from rising above the level: that
soirie par value arid accrued interest! to- {
ernmental operation.
at
an
Otherwise market
'
;
ever-increasing the Government is now paying. of the; conditlonsiof dernarid and the redemption date.
;

ers will be equitably
A cornerstone of

treated.

strikes and other disruptions, our

Government

now

■

may

come

pass

that

the

endeavor to lower trade barriers
and to abolish exchange

■

controls

Medium-term and

With incohies remaining high,
the dollar volume of private sav¬

long-term rates
are below the coupon levels that
the Government is now paying
and
consequently Rto/not' need
support. } As the federal Reserve
purchases short-term securities in

supply by which Interest rates are f^ Tlfe ^^CboridC /drawn 4or redemp4 |
determined. It remains to be em¬ lion ri^ill bo
P^id
theToffice^; !
phasized that these conditions do the fiscal agents, J. P, Morgan &

riot represent a set of natural Cofj Incorporated; on or after
Juljr/i
iotces which are beyond our reach 15, 4946; after/whielr date interest
|
of international government reg¬
br 1 influence! i;Pri"cpntrar^,' on ;the 'drawn, bonds will 1 cease*, * !>
should decline from its wartime the market the' reserve balances Debt arid: fcredit
ulations arid operations xhay re¬
On June 11, 1946, $551,200 prin"policy have 'a
beak, '< a Substantial;! ariVount; ; of; increase and commercial banks
main, thereby haippfering a freer current
"very direct bearing on thesO conf cipal afeourit df thriso bohds pre- I
savings will continue to generally can expand credit j by
raw material exchange more dan¬ be
viousiyrdi^Wn fobredemption h'ad |
available for investment in several times the amount of the ditiori^/^^huthdritiris
Government securities. Individual increasev in 1 reserve 7 balances, of 'debt! And ;credit^^^ ^
gerously than ever before.
nobbeebpreserited for payment. '-'M
may

succeed*hhd

ye|..a;new web

ings will continue at a high level.
Although, it is only natural to ex¬
pect that the rate of savings

IISW-:

■;

iVolume 163

Number 4500

nomically ruined by the Germans
their

and assure the priority of
reconstruction. "Reparation

could thus be a key to a
purposeful European reconstruc¬

Companies Experience 10% Loss
Every Dollar of Sales Made in First Quarter

toss exceeds that of

tion."

!|f (Continued from

the economic problem of Germany
can be solved 6nly by generous
outside aid, and that "months and

years" must be faced of dis¬
appointment slow progress toward

Among the indispensable

eontu-

tions under which German
cultural

output

agri¬
be increased

can

the authors include

liberal

a more

application of commercial fertili¬
and

zer

extension

power

equipment; gasoline and Diesel oil
fruitful economic life. But look¬ must be available at prices that
ing forward five or ten years and are not prohibitive, a way must be
assuming a wise administration of found to supply the essential ni¬
Allied means of control the report trates and phosphates. The authors
states, German industry and agri¬ point to recent decisions of the
culture will be able to meet the Allied Control Council which take
a

essential

demands

peaceful

economy.

:"!■; The authors analyze the condi¬

tions which would develop under
the Potsdam' policy which re¬

quires that Germany be set up as
an economic unit. They admit that
the present trend away from the
principles of the Potsdam Declar¬
ation

could

"assume

proportions

that will jeopardize the execution
of the plan."

Beginning with

of
the general principles of Allied
policy, the central point of which
is that Germany's war potential
*?

must

reduced

that "not

summary

such

unreconstructed Nazis
there are millions —

of which

into

needs

Land

account.

reform, the reclamation of forest
lands
for
agriculture and the
break-up of large estates, how¬
ever
salutory politically and
socially, do not hold out promise
of immediate

While

relief.

foreseeing the absorption

of the farmers and farmhands ex¬

pelled from the east in

inten¬

sified

agricultural program, the
authors frankly deny the possibil¬
ity of absorbing more than a small
percentage of Germany's large in¬
dustrial population into agricul¬
ture.

terms

the wildest of the

even

these

field

the

examines

excess

agression."
in

the

Ger¬

turn

industrial workers,

people become desperate un¬
hopeless poverty that civil
order is impossible."
a

der

?;! Germany's ability to feed her

basic

terials,

chemicals

and

ma¬

restriction of electrical

control of the
character and volume of imports.
plants

power

and

critical

Germany
However,

on
a

international trade.
constructive attitude

trade

toward

conditions

relations

cannot

based on merely reconstruction
principles. Germany's position in
the

world

market

will

defi¬

nitely weakened. The countries of
Western Europe are not eager to
receive

the

flood of German goods,
Russians will
restrict

industries

not

must

beyond the

whole

world is hungry for
goods, and certain Ger¬
products are indispensable

man

import

commodities for western
and southern Europe.
It will be
many years before Russia, Poland
and the Balkans can supply them¬
selves adequately. In spite of their
hatred of Germany they will buy
German goods so long as German
exports do not conceal designs of
national aggression."

extend needed in order to main¬

agriculture,
industry
and
public utilities and to provide
adequate housing for the popula¬
tion.

Investigating the steel prob¬
it

lem

"the

steel

production capacity decided
by the Control Council is

stated

with

loss

(Special

The

WINONA,

Financial

deposits are the highest
history, having reached $8,633,833,766. At the same time activity
in both dollar deposits and accounts continue at near peak level.
The ratio of deposits to withdrawals was 1.35 which compares fa¬
vorably with the ratio of 1.31 for
the first quarter of 1946*
v;

every

the Automo¬

Manufacturers

bile

1946

vehicle

3.1%

1944,

was

May,

"With

and

Toronto Stock Exch.

that

CANADA—

all

its

be carried

may

1945,

the

gain. J

nrovided

nua+e.

tion

are

soecial

al¬

made for reconstruc¬

during
period."
The Saar

that

ade-

the

transitional

any

accounts with a '

inevitable-

adjust-

the

elimination

sharper drop in the rate of
new savers

expected,"

stated.

listed

more
on

war T

new

the

with

been

Exchange has

trading at $1

the

Mr.

Catharine

"However, deposit activ¬

ity at the savings banks continues?
at peak

per

50%

levels, evidencing

the part of more and more peo-

Queisser has formed W. F. Queis¬

The minimum amount of margin

the

ser,

Inc. to engage in the invest¬

ment

business.

formerly

Mr.

Queisser

was

officer of the Winona

National & Savings Bank.

securities

selling

over

$2 per

was

stocks

tent

selling below the $2 level

were

not

50%

previously,

and

desire

pie to build for their futures.

Walter

might have %

margin basis effective June 12th.

—

new *

MINN.

folowing four years of war £

saving and

stocks

§•

over

large part of high overtime pay,
a

Stock

1946,

May,

18,894 in

ments

The Toronto

389.

7.07% in 1940, and 8.25% in 1939.

ONT.,

gain in dollar deposits of $76,654,- ;

1943, 3.56% in 1942, 6.45% in 1941,

TORONTO,

during

month

years.

sales

:
>

accounts of

similar

taxes

3.97% return

marked in-;

crease

motor

after

companies,

1945,

the

figures,

22,000 shows

over

In contrast with the first quar¬
of

The net gain in new

Association

said in commenting on the survey.

ter

Association.
depositors
to air-

Total

parts and
interruptions of operations
are
the primary causes of the
operating loss, Oscar P. Pearson,
of

Banks

number

Lack of materials and

chief statistician

total

served increased by 22,166
other high of 6,815,678.

other

Chronicle)

6.7%

Catharine, President of

Savings

;

The

upon

that

W. F. Queisser Forms Firm

tha

dollar of sales.

announced

tain

to Poland and Russia

o* tb» rrtV>

future

2.6%

lowances

lands
east of the
Oder-Neisse line and the increase

fluence

approximately 65 million popula¬
tion is complicated by the cession
agricultural

exports, the au¬
thors admit, in examining the in¬

Robert M.

under

credits

tax

profits tax carryback
provisions, is greater than that
sustained for any similar period
in the history of the industry.
The
depression
year
of
1932
showed the second greatest deficit

"the

be allowed to develop

ment of German

for

excess

consumer

The

nearly as may be
the limits beyond which a war
potential becomes dangerous, the
report points out, Allied policy
recognizes another problem, "that

market¬

the

determine

allowance

war

changes in her in¬
productive capacity, the
question of foreign trade. While
the problem of Allied policy is to
necessary

dustrial

problems

involved in the develop¬

are

$72 Minion Deposited

other

report

Serious

ing

$50,153,714 or more than 10% on every dollar of sales
during the first quarter of thiL<S>year, according to a survey of the
industry,
excluding
automotive
parts and motor truck makers,
A net gain in savings deposits of I
just completed by the Automobile
$72,017,203 for May was reported :
Manufacturers Association.
recently for the 131 mutual sav¬
The loss of more than 10% on
ings banks of New York State by
every sales dollar calculated after

averaged

of her

renewal

dream

well adapted."

years

net loss of

German exports to the Balkans.
"Nevertheless," the report states,

the

industry,

authors maintain that Germany's

many's ability to feed her popula¬
tion of sixty-five millions, the use

can

ing the objectives of the Potsdam
Declaration, and it is stated that
"the main hope for German ex¬
ports lies in the multitudinous
products of light industries, for
which German skill has proved

and

potential can be destroyed by
strict prohibition of the produc¬
tion of arms, aircraft and ships, a
sharp reduction of steel produc¬
tion, a prohibition of the produc¬
tion of synthetic oil, rubber and

—

trade balance is drawn up meet¬

depression

DETROIT—Passenger cars manufacturing companies sustained

To make certain that

Germany's
non-war industry
is kept going,
Germany must import large quan¬
tities of raw materials, the report
points out. This implies large ex¬
ports to pay for them.' A tentative

OO'

»VjV

Automobile

man¬

power

page 3354)
authors declare that for some time

-V.

JTHE COMMERCIAL & FINANCIAL CHRONICLE

same

time it

serves

At
po-

Savings

■

anti-inflationary force."

Sales of United

States

Bonds and Stamps during May to¬
taled

marginable.

$10,045,924.

plants and equipment

of the population west of the de¬
marcation line by millions ex¬

should not be included in the pro¬

pelled from the east, the report
states. "She will have to raise food
for a population only 6% smaller
than that of 1939, while she has
lost- 37% of her former produc¬
tion bfiirye, 31% of that of pota¬
toes; 29% of sugar beets, 25% of
barley. 24% of oats, and 20% of
wheat." On the basis of past ex¬
perience, however, it is to be as¬
sumed that German agricultural
production can be increased to an

states.

extent that will allow

minimum

diet from domestic sources. Even

at best, the authors assert, it will
still be necessary for Germany to
a certain
fats and fodder.

import

This

amount of edible

gram

tions

destruction,

Under

regime,

the

the League

half

one

report
of Na¬

This

announcement

not an

The

two-

offer to sell

or a

solicitation of an offer to buy these securities.

offering is made only by the Prospectus.

thirds of the Saar production was
devoted to non-German national
economies. "A prompt decision of
the future of this district could

that its iron and steel pro¬

assure

duction
the

will
of

needs

serve

permanently

western

Gulf States Utilities

Europe."

The

problem of the industrial
population is likely to be grave
for years to
come
the authors
state.

been proposed that
unemployed be as¬
signed to reparation work outside
of Germany. This would speed
up
the

First

has

millions

Company

Mortgage Bonds, 2 %% Series due 1976

reconstruction, of

tries devastated

the

Dated May 1, 1946

Due May 1,19^

coun¬

otherwise

eco¬

Price

101.49%and accrued interest

adventisement

strued

as an

to buy any

appears as a matter of record only and is not to be conoffering of the securities for sale, or as solicitation of an offer
of such securities. The offering is made only by the prospectus.

The

New Issue

Prospectus

may

be obtained in

any

State in which this announcement is circulated from only such

of the undersigned and other dealers

100,000 Shares

Houston Oil Field Material

Company, Inc.

as may

lawfully offer these securities in such State.

HALSEY, STUART &, CO. Inc.

HOUSTON, TEXAS
BEAR, STEARNS & CO.

Common Stock

DICK & MERLE-SMITH

EQUITABLE SECURITIES CORPORATION

HALLGARTEN

& CO

$1 Par Value
R. W. PRESSPRICH &. CO.

L. F. ROTHSCHILD & CO.

Price $10.50 Per Share
SALOMON
Copies of the Prospectus

obtainable from only such of the
undersigned as are registered dealers in securities in this State.

Dewar, Robertson & Pancoast5

Dittmar &

Pitman &

Company

Fridley & Hess

Milton R. Underwood & Co.

SHIELDS & COMPANY
BURR &

Dallas Union Trust Company

Crest on H. Funk

Company, Inc.

BROS. & HUTZLER

SCHOELLKOPF, HUTTON & POMEROY, INC.

are

Dallas Rupe & Son
:

COMPANY, INC.

STROUD & COMPANY
INCORPORATED

Gordon Meeks & Co.

WERTHEIM

ALEX. BROWN

THE

& CO.

DEAN WITTER & CO.

■*,

& SONS

Rauscher, Pierce & Co.

WILLIAM

13, 1946

BLAIR & COMPANY

ILLINOIS COMPANY

PUTNAM &, CO.

AUCHINCLOSS, PARKER &, REDPATH

;

JULIEN COLLINS &, COMPANY

•?

GREGORY &. SON
INCORPORATED

E. M. NEWTON

Rotan, Mosle & Moreland

& COMPANY

WEEDEN & CO., INC.

Moroney, Beissner & Co.
June

OTIS & CO.
(INCORPORATED)

PHELPS, FENN & CO.

June 20, 1946.

:'4

favor

The Federal Reserve Board

of interest

higher level

Thursday, June 20, 1946

CHRONICLE

THE COMMERCIAL & FINANCIAL

3374

rates than the Government is now

paying.

Excessive

the

level of interest rates would add
up to a billion dollars a
the nation's tax bill.

Government securi¬
ties makes for private speculative
profits but not for a saving to the
longer-term

Banks

Proposes Inflation Curbs
(Continued from first page)
doubt that the country's money
supply, several times greater now
than ever before, is and will con¬

tinue for an indefinite time to be

and deflation. When that
is reached, diminished in¬
comes
cause
a
sharp decline in
Government revenues, leading to
an
unbalanced
budget
and
a
lapse
stage

much in excess of available goods.

deficit which has to

Under

chiefly by creation of

conditions, with the

such

This policy makes

it possible, how¬
ever, in the absence of effective re¬
straints, for commercial banks to
sell short-term, lower-yield Gov¬

bank

heavy drains of war financing no
It is this chain of causation that
longer
existing,
public
policy
calls for vigorous attack on the has to be prevented, first of all,
basic Causes of inflationary pres¬ by full and sustained production
sures. This, in turn, requires that
and second, by having the Govthe Government stop and reverse, ernment discontinue its creation
if possible, the process whereby of
bank credit
and
reduce as
it has created bank credit. It is rapidly as possible its debt. Even
all

the

imperative that the

reverse

this

process

the commercial banking system
resumes
its peace-time function

under

the

most

favorable

taxation and

of careful

loans

not

only

creation

aus¬

econ¬

been

attainment

production

full

and

sustained

overshadows

far

other

production is disrupted, whether
by strikes or other causes, a series
of

interrelated

and

dangerous

economic consequences
results.

On the

one

inevitably
hand, supply

is diminished relative to demand.
On the other hand, demand is in¬
in

creased

far

the

public,
anticipating rising prices, strives
to purchase whatever can be ob¬
tained at' whatever prices
are
asked or tolerated. Black markets,
inventory accumulation, specula¬
tion, particularly in fields not
so

Board's

the

open

securities and real estate, are thus

assurance

fostered. These

standpoint

symptoms

spiral, which

can

inflationary

end only in col¬

financing

now

the

make

the

basis

the

further monetization of the public debt which
may need to be subjected to more
definite
restraint,
if
monetary

policy is to be effective and, in¬
deed, if the commercial banks
themselves

are

not

induce

lowering of the interest
rate structure. This in turn would

further

the

was

given because the Board does not

as a matter

of record only.

S*pbNEW ISSUE

800,000 Certificates of Interest in

Matagorda Oil Royalty Trust
by

The Salt Dome Oil

banking

rather

can

few;

has

than

downward'

been

notwith¬

upward,

ernments have been better able tot
exercise effective control over the,

securities..

amounts of Government

purchased by banks and over the'
rates
paid
to
banks
for this
financing.
<<<■
Such comparisons would per--,
haps be unwarranted were it not;
for the fact that proposals have;
been publicly
put forth in the
United States suggesting that fur-'
ther debt monetization might be
prevented through voluntary
agreements on the part of the,
commercial banks of this country
such

entered

are

other

into

Such

countries.

for the

some

solution

problem would be far pre-?

ferable to statutory

securities. '

There

system;

only

standing the presence of com-:
parable, war-created inflationary'
pressures. In other countries, Gov¬

interest. Bank earnings in general
reached a higher level in 1945

ernment

banking

case

In all principal nations:
of rates paid by the;

Government

by the com¬
system, public

securities which bear low rates of

be no assurance that

offered

prospect

regulations if
assured1
success. The differ¬
reasonably

the process of shifting from the
ences between the situation in the
shorter to the longer-term Gov-!
United States and in other counernment securities \yill be discon- J
tries arise because there are more1
tinued
unless
the; shorter-term j than
14,000 commercial banks in
rates
should
rise
to the point i
the United States, operating un-1
where
the
shifting
would
no |
der highly competitive conditions,

profitable

longer be
be

would

increase

Government of
debt.

—

and this'

undesirable because

would

the

cost

the

carrying the pub¬

Unless

some

adequa+f

restraint could be exercised as to

the

amount and

securities

ment

banks
their

may

commercial

hold In relation to
deposits, the issu-j

demand

additional* long-term

ance

kind of Govern¬
that

se- ;

curities to the market could result
in

continued morietization of the

debt,

issued

debt

the

trend

the

was

years ago.

further monetiza¬

debt

than

and with three Federal and

forty-•
eight
State
bank
supervisory1
agencies. In England and Canada,
the countries usually cited in con¬
nection
with
voluntary
agree¬
ments, competitive and other con¬
ditions
are
entirely dissimilar.1
Each

these

bank

one

There

countries

has

but'

authority.;

supervisory

but 10 chartered banks

are

Canada, while in England about'

dozen

banks

most

the;

banking business. It is a relatively
though 1 the securities ;
simple matter to bring about vol¬
were
made ineligible for bank j
reduce the earnings of banks from
untary agreements among so few»
purchase.
For there would be banks and to obtain
sources other than their Govern¬
equitable ob¬
ment
bond
portfolios. Further¬ nothing to prevent the sale of i servance, but in view of the dif¬
existing eligible securities to the ferent situation
more,
such
continued,
uncon¬
prevailing in the;
banks and the usetof the proceeds
j United States it would be impos¬
trolled monetization of the debt
to purchase the rrew issues. Even !
and the consequent decline in in¬
sible to enter into or to enforce
terest rates would further accent¬ though the funds?; thus obtained * similar agreements.
by the Government-were used to
uate speculative inflationary forc¬
Another
proposal, which has
pay off short-terni maturing debt I
es in all capital assets.
Constant held largely bv the banks, th^re been more frequently advocated,
is that the Reserve System dis¬
downward
pressure
on
interest would be nothing^to prevent the
continue its policy of maintaining;
from
replacing, through
rates arising not from the accu¬ banks
the %% rate on Treasury certifi¬
market purchases,:; enough of the
mulation of savings but from the
eligible securities-~te equal the cates, and that open market op-:
creation
of
unnecessary
bank amount paid off. Under such cir¬ erations be directed only towards
credit is not desirable under in¬ cumstances,
nothing would
be maintaining the rate of 2V2% on;
the longest term bonds. This sug-'
gained towards reducing the
flationary conditions.
gestion
contemplates
that
the
the money suddIv.

the

these Certificates have been sold. This advertisement appears

the

mercial

Corporation

even

the

Federal

debt

occupied

subordinate place
in the economy that it held even
up to 1940, the problems of debt
management would be far simpler
and the question of increasing the
cost of carrying the debt would
manifestly be of less significance.
However, the public debt of the
the

All of

tion

lic

It is this possible

from the

and

the

Treasury

could

Government's

operations,

the

potential reserves available.

paying. This

necessary

other loans and investments banks

market in order to

rising above the level

outside

enough reserves, on a sixratio, to absorb all of this
$55 billions of Government bonds.
This is wholly aside from what

prevent short-term interest rates
from

remain

obtain

short-term Government securities

principal countries.

to-one

maintained, if necessary, through
open
market
operations.
This
means in practice that the Federal
Reserve stands ready to purchase

Government

the customary

customers, for the pur¬

some
$20 billions of certificates
and, at least theoretically, could
by selilng less than half of these
certificates to the Reserve System

Treasury that the rate of %% on
one-year certificates will
be

covered by price controls, such as

are

assurance

Instead

these reserves,

use

banks, in the absence of effective
restraint. Commercial banks hold

financing. One of these is the

Reserve

oft

Term Bonds

com¬

Desired

Proposals,
therefore,
for in?;
creasing interest rates, as an anti-"
inflationary influence, raise more.;
formidable
questions
affecting:
the Federal budget, the levels of■?
taxation and the amounts paid on-

most

than at any previous time as a
approximately $20 billions
result
of
profits and earnings
bonds
which are
from Government securities.
eligible for bank purchase. An ad¬
While the peak of receiots from
ditional $34 billion, now ineligible
this
source
has
probably been
for banks to purchase, will be¬
reached, it would be preferable if
come eligible during the next 15
bank earnings were derived in¬
years. Thus, even though the Fed¬
eral budget is balanced and Gov¬ creasingly from private lending
and other operations in response
ernment debt continues to be paid
to necessary community require¬
down, there will be some $55 bil¬
lions of Treasury bonds that could ments, and if less reliance were
be
acquired by the commercial placed upon earnings from Gov¬
of

Nevertheless this restraint may
suffice because of circum¬

war

bear

structure

banks

not

stances which are the heritage

There

exerted.

all

other economic considerations. As

that

Without control such as exists in

Government has, in fact,
reversing its creation of
money by drawing on its surplus bank credit that finances specu¬
cash balance to pay off Govern¬ lation in existing assets, whether
ment debt, primarily that held by commodities, real estate, securi¬
the banks. As long as this use of ties, or Government bonds.
the Treasury's cash balance con¬
tinues, the effect will be anti-in¬ Curbing Unessential Bank Credit
flationary and altogether salutary
The
creation
of
unnecessary
at
this
time.
However, if the bank credit by the commercial
policy of paying off Government banking system is the particular
debt is to continue, as it should concern of those
charged with
until';'such time as deflationary monetary responsibilities. It can
andf not
inflationary pressures not be a matter of indifference
threaten economic stability, it will that at
present the country's cen¬
be essential to have not only a tral
banking mechanism lacks ap¬
balanced budget but as great a
propriate means, that may be
surplus of receipts over expendi¬ needed, to restrain unnecessary
tures
as
is
possible
without creation of bank credit through
neglecting necessary govern¬ continued acquisition of Govern¬
mental
functions.
Accordingly, ment or other securities by the
further general reduction of taxes commercial banks. So
long as the
should be avoided and prudent Government is
able, whether out
economy
should be effected in of its surplus cash balance as at
governmental operations.
present, or out of a future budget¬
Necessary as it is that Govern¬ ary surplus, to pay off its debt
ment policy be firmly anti-infla¬ held
by the commercial banking
tionary at this juncture, the rapid system, a restraining influence is
,'«The

rate

of purchasing longer-term; policy at this time would be well
higher-yield Government bonds or served if the banks were to sell
other securities, the money supply some of their longer-term hold¬
can thereby be increased on the
ings to non-bank investors and if
volition of the banks irrespective bank holdings of the debt were
of national monetary policy and more concentrated in short-term

bank
credit to finance necessary private
production, but by creation of
by

the

pose

credit to private redundant money supply will be
whose borrowing will it¬ slow and gradual. It
may be offset

self create additional funds.

extent

either for their own account or in

supplying

sources

the

mercial banks

the process of reducing the

omy,

credit.

pices, of maintaining high levels
of

year

Increased Interest Rates Not

declines

Continued

Government.

adversely upon the many millions
of the country's savers, upon in¬
surance companies, savings banks,
ernment securities to the Reserve
System and thus acquire reserves endowments, trust funds, and pen¬
sions.
which, on the present basis of re¬
serve requirements, can support a
Banks Should SeR Some of Longsixfold expansion of member bank

credit.

Government

Billions

$55

More Bonds

be financed
more

Absorb

Can

in the

centage point of increase

competition for and
bidding up of
of ^outstanding

consequent
market
prices

relatively

United

States

at the end of

1945

billions, or
nearly six times what it was five
years
before. Whereas it was
equal to about one-fourth of | the
entire debt of the country in 1940,
had

reached

$280

by the end of 1945 it was nearly
two-thirds. Interest on the public
debt amounted to less than a bil¬
lion dollars for the fiscal year

for the
fiscal year 1945, and according to
budget estimates it will be $4.8
billion for the fiscal year 1946 and
$5 billion for the fiscal year 1947.
As a result of this fivefold in¬
1939. It

rose

to $3.6 billion

rise

would

rate

short-term

close enough to the longterm rate to discourage commer¬
cial banks from selling short-term
securities to the Reserve System,
point

and

long-term

the

purchasing

securities in the market. It is con^V
tended

that

increase

the

short-term rate from % ta as high

would increase the cost)

IV* %

of carrying the
estimated $200

public debt by an;
millions and that
this would be a small price to pay,
in combating inflationary dangers.
However, there is no assurance;
much of

that this

the

short-term

further
even

debt

less

increase ih;
would

rate

monetization

reason

to suppose

stop;
and

that*

it would be of value in combating

inflationary
arisen
neither
rected
One

from

dangers which have
two primary causes,

which

would

cor¬

by higher rates.
cause

the

volume

it has become the largest
single item in the budget aside
from expenditures
for national
defense, and exceeds by $800 mil¬

already created, which cam
not be rapidly reduced. The other,
and by far the most important*
basic cause, is the insufficiency oft

lion-estimated

expenditures*'for
and benefits for
the fiscal year 1947. In view of the
large amount of short-term debt
that will need to be refunded in
the next few years, each full per¬

prdductldii'as

veterans' pensions

the existing money

crease;

YARNALL & CO.
-

June 19,1946

COIIU & TORRE Y

money

*felatidft-'tpsupply.

^ •*
major consequence in at-*;
tempting to deal with the problem
of debt monetization by increase
A

ing the general level of interest

Volume 163

Number 4500

THE COMMERCIAL & FINANCIAL

CHRONICLE

3375
■MM

rates would be

a fall in the mar¬
ket values of outstanding Govern¬
ment securities.
Tnese price de¬
clines would create difficult mar¬

ket problems for the
Treasury in

refunding its maturing and called
securities. If the price declines
were sharp
they could have highly
unfavorable

repercussions on the
of financial institu¬

functioning
tions

and

carried

far

enough

might even weaken public con¬
fidence in such institutions,
f The Board, therefore, does not

this

measure
would
strengthen
capacity of the Federal Re¬
serve to prevent bank credit ex¬

the

pansion

the basis of additional
obtained through gold

reserves

return

14,000 commercial banks
that it could be dealt with ef¬

among

fectively

increased

interest

rates unless they were so high as
to be a deterrent to
necessary

production, apart from the serious
the

consequences to

Government

security market.
If traditional interest rate

■'?

from circulation.

ever, when banks have relatively
small amounts of excess reserves,

increases in

reserve

policy

farther debt monetization? Vari¬
ous alternatives have
been sug¬
gested, some of which the Board
other¬

wise

impractical. Among the pro¬
posals which the Board believes
worthy of consideration by the
appropriate
committees
of
the

Congress

the

are

out¬

measures

lined in general terms below.
"V

•

measure

would

rise in in¬

necessitate Federal

(Continued from page 3345)
without close supervision of

left

Governments

em¬

continued policy

structure of

with

usual

banking.

Czechoslovakia's

their

was

ex¬

partic¬

accruals

for retroactive wage
cen.s per hour. Re^,
month, as well as for
last, will in most instances be
poor, particularly since wage ac¬
cruals will be at the rate of I8V2 ;
cents per hour beginning May 22
last. Poor earnings reports thuiL
far have tended to obscure the;
fact that -traffic has been running,
increases of 16

suits for this

ular case. Its very many public or
semi public banks were of good

bank

banking of the country is directly revenues of Class I roads are
or indirectly in
public hands. The "presently equivalent to an annual
more so
since men with experi¬ average rate
considerably in exence, knowledge and character, cess of 1942, the peak profit year;
who led the country's banking up for railroads as a whole.
With,
the present, will continue to do
production of heavy goods indus¬

presidents, managers and
staffs with treasuries and central

standing
ienced

and enjoyed an exper¬
and
good, management.

There is no'reason to doubt that

the policy of sound banking will
continue even after the entire

exceptionally high levels de¬
spite, strikes and reconversion dif¬
ficulties. r
Actually,
operating
at

maintaining the existing level

short-term

interest

the

rates,

principal effect of an increase in
requirements would be a

reserve

shift

Government

banks of every country concerned,
if the stability of markets and

safety of investments and savings

Reserve Banks.

Each of the

foregoing

measures

provide additional instru¬

ments

for

coping with emerging
banking and monetary problems
without
increasing the cost of
Government financing or upset¬
ting the market for Government
securities. The suggested measures
would
help to strengthen
the
position of the banks and at the

in the financing of
industry, and agricul¬

well

likely to rise sharply now
that the peak of the labor crisis
has been parsed, , traffic seemsr

seem, therefore, that
considerations of principle

many

would favor the policy of Govern¬
ment control and of participation

in the credit system. The Czecho¬
slovak

stronger
ticular

One

is,

case

however,

account

much

of two

par¬

reasons.
reason

through

is that the six years,

which

Czechoslovakia

bound to improve even further
during the latter half of the year. :

Higher Stock Prices

consumers.

UnMReiaiTsiocT

for

tion,

the stock market is entering a
period of the traditional summer

rise.

Notwithstanding

the

fact

that

suffered from German occupation,

however,

railroad

labor

What is

come.

resore

The

crease.

needed

to,

rail

compensating

time

some

now

confidence

situa4,

submit that this has been,

securi-i;
rate in4
,

railroads'

iiif

case

conditions vary from year to year,
it is interesting to note that the

the past 20 .years and in 42 out of
the past 49 years.
The record,

the

definitely settled for
to

ties

and their cash

continue their normal peace-time

tries

would

prived of any freedom of action,
put under strict German control

time would- enable them to

ture,

in the national institutions.

The Czech Bank Situation
It

would

same

to be safeguarded.

are

securities

power the Board of Governors to

place a maximum on the amounts
of long-term marketable securi¬
ties, both public and private, that

without

and

countries

cur¬

have been

help in the times of dis¬
tress?
No country, however lib¬
eral, was able to go on without a
good and strong legislation on
banking
and
without
reliable
methods
of
supervision.
Close
cooperation is required of able

advice

Under

reserves.

commerce,

Proposals

One

purchase of sufficient se¬
curities to provide the additional

functioning

requirements

would make it necessary for banks
to liquidate some of their assets.

This would result in

In Czechoslovakia

cur¬

date

tremely depressed due primarily
to

from the commercial banks to the

or voluntary
agreements are not
appropriate or feasible, then what
alternatives remain for preventing

considers too restrictive

Under present conditions, how¬

Relieve that the problem could be
terest rates
met
by
voluntary
agreement Reserve
pr

flows

earnings for the

rent year to

imports
rency

Railroad

Bank Nationalization

strong, and thefe; is little ddubfc
helped Germans to loot the coun¬
that adequate relief will be pro-*,
try and to deprive its banking of price level of the stock market in vided in the reasonably near fu¬
many valuable assets.
In some July and August has surpassed the ture. Railroad
stocks, of course,'
parts banks were taken over by previous May closing level in each are not cheap on the basis of cur-;
Germans, in others they were de¬ of the past 15 years, in 19 out of rently reported earning power but

spent by Germans
bills and bonds of

subs.antial

earnings

bly

appear
view of the

rather

will

proba¬

suddenly

impres¬
high level of traf-;
sive if confined to the years in
investing in
fic, once rate increases are effec¬
Nazi Germany, which are of no which the main market trend was
any commercial bank may hold
tive.
•;
rf
value
whatsoever.
In
each
bull
market
Thus,
some upward.
against its net demand deposits.
Dillon, Read & Co., Inc., headed
It is logical therefore to antici*
banks were heavily damaged by summer from 1896 to
This measure would serve to re¬ a nationwide investment
date, for in¬
banking
the enemy and when peace ar¬ stance, there has been a rise. In pate that rail stocks will discount
strict
the
banks'
demands
for group which offered to the
public
future earning in a more realistic
long-term Government securities June 18 700,000 shares of United- rived, they faced heavy liabilities all those years when the price and
vigorous fashion. ■)
with high assets definitely blocked level in July and August failed io
and to strengthen their demands Rexall
Drug. Inc. capital 6stock at
mm
in Germany and of a very dubi¬ top the previous May
for short-term secuirties. It would $16,875
/.
closing the
per share.
ous value.
main underlying trend was down
not restrict the banks' ability to
The corporation « will use
the
It was by no means the fault Moreover, summer advances us¬ To Form Rollins & Hewitt;
make loans or to purchase longproceeds from the sale of the of the Czech
bankers.
Ernest C. Rollins, member of
term securities against savings de¬
Many of ually have been substantial; tak¬
stock in connection with expan
them were put to jail and even ing into consideration declines in the New York Stock
posits. It would reduce, however, si on
Exchanged
plans and to augment work¬ executed
by Germans and finan¬ bear market periods the average and W. Wilson Hewitt will form
the existing inducement to sell
ing capital.
It is expected, ac¬ cial losses were due
the new Exchange member firm
short-term securities to the Re¬
solely to Ger¬ advance has been about 10%.
cording to the prospectus, that man
mismanagement. A way had
serve System, thus creating addi¬
Precedent itself, of course, is of Rollins & Hewitt with offices
approximately $1,200,000 of the to be
at 50
Broad Street, New York
found, however by the no absolutely reliable
tional reserves, in order to pur¬
proceeds will be used for the ac¬
criterion,
Czechosolvak Government, to help
chase higher-yielding, long-term
but in view of the basic economic City, effective July 1. Mr. Rollins
quisition of all of the capital the
small man whose entire sav¬
issues. The voluntary agreement
and financial factors, it is diffi¬ has been active as an individual
stock of a group of corporations
ings would be lost if the Minister cult to
floor broker for many years. Mr;
adopted in Canada is similar to and the assets of several
anticipate that the strong
partner¬ of Finance had not
stepped in and seasonal
Hewitt was formerly a partner in
this limitation, which would be
pattern will be violated
ships conducting a retail drug
assumed
the
consistent
with
responsibility for during weeks and months imme¬ Fransioli & Wilson.
good
banking store
business
in
Fort
Worth, some blocked assets.
The easiest
practice in this country.
diately ahead.
Texas, under the name of Renfro

Offered by Dillon, Read

measure
would be to Drug Stores. Acquisition of com¬
the Board of Governors panies- manufacturing merchan¬
to require all commercial banks dise normally sold in drug
stores,
to hold a specified percentage of opening of new. stores and
en¬
Treasury bills and certificates as largement and remodeling of re¬
secondary reserves against their tail drug stores operated by the
net demand deposits. To aid banks corporation's operating
subsidiary,
in meeting this requirement, they
United-Rexall
Drug
Company,
should be permitted to hold vault will also be undertaken.

Another

•>

empower

cash

in lieu of

excess reserves

Government securities. This

result

would

ure

meas¬

stability

interest yields on short-term Gov¬
ernment securities and, therefore,

cost

the

public

Like the bond portfolio

would

provide

measure

for

securities

ment

for

-demands

At the same

Considerable
of

ment

Govern¬

short-term

for

relative

government

their

longer-term issues.
time, it would leave

freedom

interest

for

yields

paper

move¬

non¬

of short-term

maturity.
V.

administrative flexibility

Some

should

authorized

connec¬

tion with either of these measures
inorder
to meet
differences
banks as well as to adjust

among

to the changing needs of the econ¬

for

omy.

bank

credit expansion

contraction.

A
to

further

oossibliity would be
grant additional power to the
to

Eoard

raise

modeling

require¬
ments,
within
some
specified
limit, against net demand de¬
reserve

-.rganized

count

vault

cash

re¬

there should be pro¬
vision for greater administrative
flox b'l ty ii aoplying changes in
;equirerrents. To assure effective
and

serves,

control,

all

commercial

banks

should be subject to the same re¬
serve

requirements.

Adoption ot

stores

$7,000,000.

Drug,

1933

Inc., was
acquire all

of
the-capital stock of United
Drug Co., which had been a con¬

company

stituent

dissolved

1933.

Drug,

Inc.,

United-Rexall

to this aim

both

liabilities

banks

this

and

to take

was

and

exactly-what
happened through nationalization.
Large Number of Communal
Banks

The second
oslovakia.

is a partic¬
banking in Czech¬

reason

ular feature of

Within

few

called

manu¬

cluding

drugs,f proprietaries

and

pharmaceuticals; certain rubber
articles, toilet^ goods, stationery,
confectionery and other products.
These
for the

other

and

products

made

company by other

facturers

manu¬
distributed
by

are

United-RexaUl^Drug

to indepen¬
dently owned drug stores called
Rexall Drug {Stores.

Upon completion of this finan¬
cing the outstanding capitaliza¬
tion of United-Rexall Drug,
Inc.,
will

consist

o|j 3,501,120

capital stock.

Hentz
Jose M,

shares of

Admit Covp

of this revival

were

small

hasbeen;wilpLthe-^
time

co-manager

feller Center office.

of the Rocke¬
•.

the

factors

Broadway, New York City,
bers of the

New York

This advertisement

mem*

Stock

July 1.

is not, and is under no circumstances

to be construed as,

offering ojf these securities for sale, or as an offer to buy,, or as a
solicitation of an offer to buy, any of such securities.
The offering
is made only by the Prospectus.
This is published on behalf of
only

those

the

undersigned

who

securities in

this State.

are

registered

dealers

public banks for mortgage credit
communal loans etc. These bank¬

ing institutions were ;of great im¬
portance for the money market
and

for

the

80%

use

country's

McGratbSt. Paul Company

economic

the volume of de¬

lies

outside

37,000 Shares
Cumulative Convertible Preferred Stock

joint

stock

(Par Value $5.00 Per Share)

banking. The last pre-war
figures would show that out of
about

57 billion

Korunas

Price $6 Per Share

sav¬

ings approximately 20 billion were
kept
with
municipal
savings
banks, about 5 with district sav¬
ings banks, approximately 13 with
credit
and

cooperatives

towns,

over

the

with

37,000 Shares
Common Stock

cities

farmers

(Par Value 50c Per

credit

cooperatives, 2 with the
the provinces and the
Post Office Savings Bank while
only the remaining 11 billion Kor¬
unas
were
deposited with the
banks of the joint stock type.
banks

stock

banking only. It is, there-

Irving J. Rice & Company

the

revolutionary

change, which it might have had

Amos Treat & Co.

l:St. Paul
.

•

New Orleans

fbr&i*iff
;Surahl0^"With

Share)

Price $2 Per Share

Weil & Arnold

New York

Link, Gorman & Co.,
Incorporated
Chicago

June 19, 1946

Ex-«

change, will admit John B. Fitz-

cooperatives, savings banks in the
provinces and a special type of

120

Co.,

people's

will be admitted
partnership irt H. Hentz & Co;^ with communal, cooperative and
60 Beaver Street, New York
City,, public banking. It applies to joint-

Exchange,. onJuly:•> I,. HL Covp

Patrick to partnerhip in the firm

members of the New York; Stock

attention

Adee•

latest.

Czech and Slovak nations
revived politically as well as eco¬
nomically. One of the instruments

Nationalization is not concerned

Cb^o

Mallory,

previous occasions

shaping up in the rail picture that
are making for a
strong and vig¬
orous rail market by summer—or
most cer.ainly by early fall at the

posits as a measuring rod of the
capital strength of the banking
system, it would seem that nearly

engaged in the

tions,

sidiaries

are

Mallory Adee to Admit

The Coming Rail Market

We have

genera¬

life. If

facture of medicinal products in¬

over

assets

Drug Co. and certain of its sub¬

granted, banks should be permit¬
to

opening

United-Rexall

posits, If this authority was
ted

and

will cost not less than

debt.

limitation,

regulating commercial banks' de¬
mands

It is estimatedv tentatively that
hat phase of the expansion pro¬
gram
covering enlargement, re¬

way

even

;

THE COMMERCIAL & FINANCIAL CHRONICLE

3376

ends

Price Mation-A Symptom of "Give Me"
created
in
our
economy.
There are other problems too.

•"

You have heard

these

One

."-'v.'?

problems ^ the
of all—is the threat
Inflation, if we al¬

greatest one

it said many

times that the Post Office is the

of inflation.

biggest business in America. That
is urue. But perhaps it has not
been said often enough that our

develop, would hot only
wipe out our opportunity, to pros¬
per; it would close in upon our
existing1 economy, * unbalancing
our industrial machine bit by bit,
uiitil wb would lapse into com¬
plete paralysis.: Then, instead of
the opportunity to prosper, we
should have the reality of want.

running
this
not end ' with the
making of routes and schedules
or in. keeping the equipment in
in

responsibility
business does

good, condition;

;

of this business,
.'we,:- must recognize and
under¬
stand its relation to other busi¬
As

managers

America.

ness

aware

of the fact that

Already, as we in the Post Of¬
fice know, we have had a taste of
that paralysis.
The inflation that threatents

must

one-cent

the

comes

rise in the

price of bread in New
York City, or a demand by a labor
union in San Francisco, may have
a
very definite bearing
on the

it to

low

prices.

form

higher
fear for the

not a
of the dollar.

soundness

has

price control.

those

earnings over a higher
and higher cost of living, until
his problem again becomes im¬
possible and he finds that he can¬
not go on without another rise in
wages. *■ V
'' r
At that point his union leaders
Will Undergo a new attack of the
give-me and once again they will
excessive

each

and

scends

time

upon

this

conflict

course,
is
and want.

paralysis,

may

But the

Sound far-fetched.

rela¬

tionship of wages and prices to
operation of this business of
mail delivery was brought home
the

to us—ail
few

too

forcefully—only

days ago.

through without railroads and

aircraft
them.

and

trucks

Your

transport

couriers,
as
you
stayed by "neither snow
nor
rain nor heat nor gloom of
night," but there is nothing in
trial, familiar
quotation on the
subject
of
labor
disputes
or
stalled railroads.

know,

are

Now, what has been at the bot¬
tom of the nation's labor troubles

in these past few months?

Sup¬
pose, five or ten years hence, an
economist

should

look

back

this

scene with the advantage of
hindsight and the perspective that

time affords. What would he find?
He would

What

was

when

But

seen.

this

can

happen

if the Congress and the ad¬

omy

ministration

move

vigorously and

courageously to deal with the
economic problems which peace
has created."
other

words, the factors .of
Supply and demand—so often our
chief

block

prosperity in .the

backlog

have the

of orders.

means

And

of production to.

supply them and the purchasing
"for them.
?
'

power to pay

On that basis alone, American
business and American labor have
■

ja tremendous opportunity to pros¬
per.* But the President empha¬

with the jitters.

Price in¬
of a nation

give-me.
It is this disease—the give-me
—that

has

brought

on our labor
give-me is an
economic virus that feeds upon it¬

And the

troubles.

self.
"

In the beginning, as we emerge
into the post-war world, we find

that

producers are operating at
high rates of profit, as shown by
their income statements.
They
have

come

out of the war with a

President

threat.
it.

end

result,

foresaw

this

He attempted to forestall

asked

Congress to extend
price control. An overwhelming
majority of the American people
want and demand price control,
as shown by popular polls—three
out
of every four.
They have
flooded
Congress with mail.
I
have

seen

some

those

letters,

and I know they are spontaneous

the

—not

standardized,

uniform

kind that organized lobbies dump
in the lap of Congress—but let¬
ters written by hand, letters from

housewives, from small business
white

men,
war

collar

workers,

and

veterans.

President Truman's Actions
with

the

rate of

correct the unbalance and remove

of life is set

the

man's reach.

and

beyond the workingHe cannot pay those
prices and keep his family housed
fed

and

higher

and

clothed.

needs

wages.

The

leaders of his union then

make

demands for higher wages.
they make their demands ex¬
cessive.
They, too, have come
down with a case of the give-me.
At that stage the company and
the union fight it out. A strike is
called. It may last weeks, months.
Finally, a settlement is reached,
and
the
workingman is given
part of what his leaders have de¬
But

manded, hoping that with this in¬
crease

he will

now

be able to pay

the price of
But

the

give-me

living.
people who

are

not cured.

have the
The fever

again and again there
is the tug for higher prices. Manu¬
facturers complain that they can¬
not pay the higher wages without
raising prices.
But their com¬
plaints do not harmonize with
comes

their

income

sized that this opportunity is not

statements

the only new factor which peace

statements.

Those

the give-me.

show

they still have

threat

that

their

Chester

plea

hung

and

them
placed

Paul

families.

Bowles

Porter

over

in the key positions in our ma¬
chinery to stabilize the economy.
He asked Congress to extend OPA
—the agency of price control—

for another year.

At the

night to reach a settlement of the
great labor disputes that had de¬
veloped in major industries — a
settlement that would bring the

workingman's take-home pay into
balance again
with the higher
prices that he had to meet .to live.
At times both sides of these dis¬
putes were arbitrary in their de¬

mands,
tudes.

obdurate
But

settlements

fected, and work

atti¬

their

was

were

af¬

resumed.

Now,

who tells you that
200,000
American

anyone

100,000
workers

willing to walk out
industry idle over a
period of weeks just to get a little
extra money for the movies or
for a vacation in Florida, or for
the frills of life, does not know
these men and how they live.
When they go out on strike, they
go because they are afraid they
will not have the necessaries of
life for themselves and their fam¬
are

and keep an

losing the homes they have
with their savings.
A
a grim and costly busi¬
ness.
It is born of fear and fed
bought

fear.

On the other side, anyone

who
management's only
keep the workers
ground down as they were in the
old days of Charles Dickens does

tells you that
motive is to

BANKERS

Leading

Other

It would"
and more government

to work in time of peace, extreme

it is, and necessary though it
be in times of emergency**

reckless

power

labor

who

leader

too

willing to pit the strength of his
union against the nation—against
government itself—and the min¬
ority of big business men who are
attempting in their blindness and
greed to do away with price con¬
trols, the men who want more
and more profits and who care
not what disaster may befall their
fellow-Americans

this ruinous

scramble.

is not

to inflation. That
expendable or an
unlimited power. In the national
an answer

is not

interest,: your
force

government v

can-

group of workers to end
their strike and accept a settle-*
ment which it deems fair.
But

six

months later,

living

has

government

your

men

their

children

the

if the price of

continued

those

President Truman has taken his

those irresponsibles.
told by some that
this is bad politics.
But in his
heart he knows it is good Amer¬

gency

stomach,

icanism, and I

force

alive

and

healthy

settlement.

same

upward,

cannot

keep themselves and

Government

stand against

possesses no emer^

rise.

has

been

he
answering the dic¬
heart that beats only
can assure you,

will carry on,

tates

for

America.

the

against
the

meantime,

price

halls

the

control

the

fight

goes

Congress.

controversy

in
it is

And

price
the vote of Congress
on this question, that future labor
relationships in America will be
control,

over

decided.

The

prospect, if Congress elects
price control, is
appalling.
Food prices will go
up 20% in their first jump.
And
other jumps will follow.
Chair¬
to

discontinue

powers

the

over

cold

down heels.

Nor

run-down

house,

empty

run-'

it command

can

hopes

country and its system bi
enterprise occupy an island
today in an unfriendly sea. The
free

tides

that

against

sea

Our

us.

are
running
stamina,
our
being
tested.

foundations,
are
Before the world, we are on trial.
And there • are those among us
who

are

blinded

that

they
economic;
system a verdict of guilty before
any
jury of our international;
would

bring

upon

peers.

our

...

the

offices

Capitol Hill,

have brought pressure which
has forced America to the brink
men

Marriner Eccles of the Fed¬

Reserve

world.

Board,

banker and

enced

experi¬

one

of the

creases

turn

may

to 150% within a year
out to be underesti¬

mates.
If

have

price increases

that kind, corresponding demands
for wage increases to meet them
are
inevitable;
American
labor
either

make

such

But

na¬

tion's foremost economists, warns
us
that predictions of price in¬

demands

accept a lower standard of liv¬
ing. There is no other way out.
or

And if anyone should tell me that
American
labor
must
accept a

self-conviction
there

before

still

time

the
win

against this danger. Until the
last day and hour of the battle to
carry on price control, it is not too
late to fight.
Last September, in announcing
my intention to ask Congress to
reduce the rate on air mail, -I
stated the hope that the action of
the Post Office might set an ex^
ample to both industry and labor.
out

As I said at that time of this pro¬

posal to decrease the rate:
"The

resulting

vol¬

increased

will bring down the unit cost

ume

living in this of delivery, and, within a reason¬
miracles,
I ably short time, justify the cut.
would answer that he is libeling
"That is a tried and true prin-;
our
system
of r free enterprise., ciple in the peacetime business of
That,; is not the American way. .. our country. It is the way that
lower

standard

productive

age

Recently two labor leaders set
out to stop the railroads of Amer¬
ica ^nd keep them stopped. They

should

have

called

their

scheme

President
saw

not
the

The

succeed.
United

States

to it that they did not.

And

might add that he also saw to it
men got a raise
in wages deemed reasonable both
by federal mediators and by the
that the railroad

rank and file of railroad workers.

the

But

President's

have

been

action

able

the

raise

living of our work¬

ing people above that of any other
people in the world—by bringing
the products

Operation Paralysis.
did

standard

our

of our industry and

services down to prices which

they

afford

can

want to remind the

pay. ?

have

proved,

again

and

then*

again,

the soundness of this principle of
American

business.

Every

time

It works in
bringing more and better things
to our people. It works in creat¬
ing more jobs., And in the long
run
it works in assuring better,
steadier
profits to the owners
it is tried, it works.

ending that stoppage of trans¬
portation has been misinterpreted
in letter and in spirit.
The ir¬
responsibles on both sides have
been guilty of misinterpretation.
themselves.
Irresponsible labor leaders have
"In time of war, when labor
accused him of exerting the pow¬
materials
were
scarce,
of
er
of federal government to en¬ and
force a surrender of living stand-1 course -we have had, to set Jhat
ards by the working people of principle aside.
And sometimes;
America.
Irresponsible men In in the inflated wake of war, we
management have hoped that this forget it. We forget that it works,
and we try other ways, inflation¬
was what he had in mind.
sides are guilty of delib¬
misinterpretation and mis¬
representation. The power of the
federal government was not being
Both

erate

ary ways, short-sighted ways,
work for awhile but in; the
run

get us into

trouble.

that
long

;

thought that in onCd
not know American business and
exerted for this purpose, or for again proving the soundness of
how it is run.
The reason the any other purpose except to save this principle of American busi¬
business man does not grant la¬ our
moving.
country : from
immediate ness,.. our. government
bor's demands more readily, re¬ strangulation.
Strictly within. its own.. field and
handing down no directives thai
sists those demands, is fear.
He
Inflation, and the labor con¬
"It is my

ZZS5SZ52

setting a good example to
industry and labor.

moves

BROKERS OF BONDS, STOCKS, COMMODITIES
Private Wires

reach outside that field—will

ruptcy.
income

INVESTMENT SECURITIES

k a'.,

Home Office: Atlanta

Z2ZZZZ2ZZ22Z2

•

Phone ID- 159

of eventual bank¬ flict•- whiclr is, carried; in
when his current threat, would, create new emer¬
are
good, he
gencies of the same sort.
The
against labor because he definition of "vital" or "essen¬
Even

statements

afraid.

What
•

themselves

fathers -before'

their

and

And

business men

of America that they

is afraid of loss;

UNDERWRITERS AND DISTRIBUTORS OF

men

Our

eral

They

strike is

INVESTMENT

conflict mean?,

may

Why Workers Strike

Members New Yorlr Stock Exchange and

cycle who are not afraid are the
irresponsibles on both sides — the

must

time the President

same

and his advisors worked day and

ilies.
They are afraid of being
evicted from the homes they rent,

€oufU &

can't keep pace?

The only parties to this vicious

man

Faced

profit, the price of the necessities

of the give-me.
maintain that high

case

mean more,

stagnation,

of workingmen for higher wages, Presi¬
dent Truman moved quickly to

bad

past—now favor us. We have that
vast

that has become afflicted with the

message to

ever

now

whole nation becomes af¬

flation is the symptom

accurate in his

Congress last Septem¬
ber when he said, "A vast back¬
log of orders may soon make pos¬
sible the greatest peacetime in¬
dustrial
activity that we have

suffering

final

find, first, that Presi¬

dent Truman

are

virulent and damaging

The

incipient form of the dis¬
Monetary inflation — the
stage —is
brought
about

only
ease.

flicted

It is easy to say, you know, that
the mails will go through. It is
nxe to think so.
But they don't
go

The Disease of "Give Me"

de¬

industries, it is

our

inflation."

Their

demands.

demands, and the refusal of man¬
agement, bring on new conflict;

prospect of continued delivery of
way,

agement, with our recent
increase we could meet this

ing

stretch his

the mails in St. Louis.
this

have

groups

pressure

way, the workingman will
where he. started 1—trying to

The

But what would this, broaden¬

prices

says man¬

What if

character.

Stated

Yes,

bear

what

their

end

that has been
Congress to

pressure

brought to

catastrophe that
economists describe as "monetary

the

reached

not

But

price
high¬ intervention, it. would, confront
payroll. But other producers the federal government with the
will be paying more ; for rtheir necessity of; using more and more
labor now, the things we buy drastic emergency powers — or
will cost us more, and we shall surrender to chaos,
t
^
But the power to make men
be. caught-in the upward spiral.
go

extreme

make
us

meet.

continue upward?

We have the proof of this in the

has

(Continued from page 3343)
it wai remain our problem of to-

Thursday, June 20, 1946

are

says

recent

Industries

would inevitably

they afraid of?

broaden, and the conflicts within
inflation. them would just as surely deepen.
the union' man, with iny' All our legitimate industries are

are

They

Yes,

tial"

afraid

raise

can

make

"vital" and "essential."

both

"Along; that road—the road of
farsighted policy, of temporaryfor the sake of per-*
manent; benefits-rrlie -prosperity
concessions

for

our

nation."

people and

security for
V
:;
y

! V' (';i-5r

<?,.,{ ty.to UitVY-

.Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4500

3377
■■

after the making of the first the powers given the NAC with
report.
Each such report shall respect to the Export-Import Bank
as
well
as
all
other
cover and include: The extent to
lending
Which the Fund and the Bank agencies in the foreign field are
years

have

«r>i

(Continued from page 3343)
financial agreement and
it was made public on May 28,
4prtfy a few days before the French
French

jnational elections of June 2. De¬

approved July 31, 1945. In view of
the questions which have arisen
in NAC between the Chairman of
the

Bank

Export-Import

one

the

hand and the remainder of the

NAC on the other, both the justit is obvious that
legislation
and
the
Department, including mentioned
«our Embassy in Paris, deemed the portion
of
the
Export-Import
timing of the announcement a Bank Act of 1945—Sec. 3 (a) 3 (d)
—should be read. They are there¬
lactor in the French elections.

spite
the

denials,

State

The

above

mentioned

tneeting also involved

N AC

■;

•credits which have been opened
•or which are being considered in
the case of. turbulent China.
Still another ray of light on the
secret

meetings of the NAC comes,
•Curiously enough, Via London. In
•an article in the "Anglo-American
SKews" of May 1946 Mr. W. Mann¬
ing Dacey, well known British fi¬
nancial writer and

editor, tells of
a
press
background conference
Which was held by Lord Keynes
following his return to England
t from Savannah. In his article, ivir.
«,

One American administra¬

tive

arrangement to which little
attention was at first paid in this
country is now regarded ■with considerable satisfaction. That is the
National

the

establishment

Advisory Council.

The original

purpose of this body was to ensure
that the U. S. representatives [on

would be ef¬

the Fund and Bank]

fectively responsible to
But there

are

Congres^

indications that tne

■'

been

coordinated,

nection

1 ?y

Advisory
Council on
International Monetary and

therewith;

tions

whether the

the

and

con¬

recommenda¬
resources

the Fund and the Bank should be

increased
or
decreased; recom¬
mendations as to how the Fund
In order to co¬ and the Bank
may be made more
ordinate the policies and opera¬
effective; recommentions on any
tions of the representatives of the other
necessary
or
desirable
United States on the Fund and the
changes in the Articles of Agree¬
Bank and of all agencies of the
ment of the Fund and of the Bank

Financial Problems

"Sec.

(a)

Government which make

par¬

in this

Act; and an over-all ap¬
making foreign loans praisal of the extent to which the
in foreign fi¬ operations and
policies of the
nancial, exchange or monetary Fund and the Bank have served,
transactions,
there
is
hereby and in the future may be expected
established the National Advisory to
serve,
the interests of the
ticipate

which

Council
and

JDacey states:

.o>'' ?

have

purposes

Council's recommendations in

fore reproduced below:

dis¬
"National
cussion of the obviously political
some

the

for more specific and far-reaching
which they were established; the than those which the Export-Im¬
extent to which the operations and port Bank's Advisory Board holds
policies of the Fund and the Bank over that institution. Yet it seems
have adhered to, or departed from, a safe conclusion that by "con¬
the general policy directives for¬ sult" Congress did not mean that
mulated by the Council, and the the
Export-Import Bank could
Council's
recommendations
in ignore the Advisory Board's ad¬
connection therewith; the extent vice. If so, there would have been
to
which
the
operations
and little need to create the Advisory
policies of the Fund and the Bank Board. In the Bretton Woods Act
achieved

engage

International Monetary

Financial

Problems
as

United

and

States

the

world

past, any international action by
the United States has been weak¬

"(2)

Mr.

Note:

the

perhaps^ the tot
of a Britisn

fnTer-departmentalCabinetcomjnittee possessing

ad hoc powers.

Background of NAC Legislation

NAC

will

27.]

William O. Gay Dies

the

Harrison

Chicago,

Wholesale

one of the pxinc

.!•

pal wholeale distributing comprhies of the Middle West.
T* J
stock was priced at $9,625 p; .•
share, The Offering represents a
portion of present holdings c I

sash

to the

transportation indus-

try.,
The Company does a large dis¬
tributing business in the Chicago
area and, through
catalog distri!
bution, with more than 22,000
dealers over the country.

the Fund and the Bank.

The Council shall advise

and consult with the President and

loans

BOSTON,
wright

members

Mass.—H.

Co.,
of

the

Boston Stock

WainJ

Street*

State

New

York

and

Exchanges, will ad¬

mit Francis V. Ward to partner¬

ship

July

with

been

the

Mr.
firm

Ward
for

has

many
&

years.

To the Holders of-

participate in the making of for¬

eign

H. C. Wainwright to Adnr t

NOTICE OF CALL FOR REDEMPTION

■Hi

engage

COLUMBIA GAS & ELECTRIC

CORPORATION

the Bank.

is;

American equivalent

Co. of

portation vehicles, and Visionator,
Bratter's Inc., which sells glazed window

in the "Chronicle" of June

appear

between

partments,

stock

debates, it will be
was argued that the

article

second

in foreign
ened by the division of fimcttos,
the representatives of the United financial, exchange or monetary
and frequently of
shall
keep
the
States on the Fund and the Bank transactions)
yiew
the Treasury and the State ue
Council fully informed of their
on major problems arising in the
partment.
The NAC,
~
administration of the Fund and activities and shall provide the
eludes high officials of both de
Council with such further infor¬
-

&
Co.*
Chicago,
banking group which on
June 17 made a pubLc offering of
85,000 shares of $1 par common
a

and

[Editor's

(herein¬

•

Brailsford

headed

the "Council"),

Council, with its high
authority. and the Bank, shall recommend to United States on the Fund and
Will on the contrary tend rather
the President general policy di¬ the Bank, and the Export-Import
to safeguard the Bretton Woods
of
Washington
(and
all
rectives for the guidance of the Bank
organizations against too
1 other agencies of the Government
representatives
of
the
United
Interference from Congress. In th
to the extent that they make or
States

Offered by Brailsford

several large stockholders and r. j
proceeds will accrue -to the com¬
recalled, it
pany. In January this year, to:
fact that member countries must
capitalization of the company wc x
under certain circumstances, such
changed from 30,000 shares c I
as a
change in parity, "consult" $7.50 par common to
210,000 shan i
the Fund is not an idle provision;
of $1 par. This class of stock eon •
the Fund having the
power
to stitutes the sole
capitalization.
penalize a recalcitrant member [ The
company's two subsidiaries
including the power to deprive it are
Luminator, Inc., wheih sells
of access to the Fund's facilities.
interior illumination for \ trans^

hearings

promoting
sound
international
William Otis Gay, retired New
economic cooperation and further¬
York and Boston banker, died at
consisting of the Secretary of the ing world security.
his home at the age of 80 after a
Treasury, as Chairman, the Sec¬
"(7) The Council shall make
retary of State, the Secretary of
such reports and recommendations long illness. -Mr. Gay in the early
Commerce, the Chairman of the
to the President as he may from nineties
established the invest¬
Board of Governors of the Federal
time to time request, or as the
ment banking firm of W. O. Gay
Reserve System, and the Chair¬
Council may consider necessary
man of the Board of Trustees of
& Co. in Boston, of which he was
to more effectively or efficiently
the Export-Import Bank of Wash¬
senior partner until the firm was
accomplish the purposes Of this
ington.
Act or the purposes for which the dissolved in 1935. He was form¬
"(b) (1) The Council, after con¬
Council is created.
erly active in the textile manu¬
sultation with the representatives
"(c) The representatives of the facturing field.
of the United States on the Fund

after referred to

Harrison Wholesale Stock

Gold Debenture Bonds, 5% Series due 1961

mation or data in their possession
"(3) The Council shall coordi¬
as the Council may deem neces¬
nate, by consultation or other¬
wise, so far as is practicable, the sary to the appropriate discharge
of its reponsibilities under this
policies and operations of the
Act."
representatives
of
the
United
Section 14 of the Bretton Woods
States on the Fund and the Bank,

the

Export-Import Bank of Wash¬ Agreements Act draws attention
ington and air'other agencies of to the United States Government's

sibling act provision
: like the NAC was
^
ors and others, notably

the Government to the extent that

byb!f^

policy

reducing

obstacles

make

fit'

participate in the international trade and then pro¬
by
vides
that
"In
considering the
Bankers
Association making of foreign loans or engage
in foreign financial, exchange or policies of the United States in
and the Federal Resery®
foreign lending and the policies of
monetary transactions.
The ABA in its pamphlet,
Prac
"(4) Whenever, under the Arti¬ the Fund and the Bank, particu¬
tical International
n a.n c *
cles of Agreement of the Fund or larly
in
conducting
exchange
Organization
through
Amendthe Articles of Agreement of the transactions, the Council and the
to
the
Bretton
Woods
Bank, the approval, consent or United States representatives on
^Proposals," had in mind safeguard¬
agreement of the United States is the Fund and the Bank shall give
ing to Fund and Bank through
required before an act may be careful consideration to the prog¬
tegular consultation with Condone by the respective institutions, ress
which
has
been
made
in
when it recommended as the decision as to whether such achieving such
agreement and co¬
follows:
approval, consent, or agreement, operation."
ft "Provision should also be mad
shall be given or refused shall (to
ior a United States directing com¬ the extent such decision is not
Advisory Board of. the
Export-Import Bank
mittee consisting of officers such
prohibited by section 5 of this
iis
the
Secretary of. State, i
The provision of an advisory
Act) be made by the Council, un¬
of the Treasury, the der the
general direction of the board in the Export-Import Bank
of
Commerce,
the President. No
governor, executive Act reads as follows:
of the Board of Gov¬
"There shall be an Advisory
director, or alternate representing
the Federal Reserve the United States shall vote in Board consisting of the Chairman
they

American

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of Section
12 of Article One and Section 1 of Article Three of the Indenture dated as
of January 15, 1931, as amended by the Supplemental Indenture dated

August 29, 1945, between Columbia Gas & Electric Corporation and
Guaranty Trust Company of New York, as Trustee, Columbia Gas &
Electric Corporation has elected to call for redemption and will pay and
redeem on July 15, 1946, at 102% of the principal amount thereof and
interest accrued thereon to said date of redemption, all of its Gold deben¬
ture Bonds, 5% Series due 1961, outstanding under said Indenture, as

|r!ss

July 15, 1946.

Secretary

Airman
ernors™"

tea

favor of any waiver

Ifgn EconomTc Adminisjrator, and
President

of the Export Im

Export-Import Bank of
Washington, who shall serve as
Chairman, the Secretary of State,

dollar

the Secretary of the

article V,
of

United

States

scarce

article VII, sec¬
tion 3, of the Articles of Agree¬
currency

the

of condition
section 4, or in
declaration of the

under

'favor

any

under

amended. Interest

the

Board of

said Gold Debenture Bonds will

coupons or coupon

anyone

Bonds registered

as to

principal, in case payment to

other than the registered holder is desired, must be duly assigned
or accompanied by proper instrument of assignment, in blank.

in blank

COLUMBIA GAS & ELECTRIC CORPORATION
By: DALE PARKER
Secretary and Treasurer
Dated: Wilmington,

?.nmmittees

and formal reports

regular and
the President and the Congress.

fre^elV congress "°

in the Fund and the Bank.

"(6)

The

Council

transmit to the

shall

also

President and to

the Congress special~ reports on
the operations and policies of the
Fund

the

Advisory

Board

major

questions of policy."*
To

the

layman it appears that

Notice of Immediate

Payment

Holders of the above-mentioned Gold Debenture Bonds may obtain im¬

mediate payment of the redemption price thereof and accrued interest
thereon to July 15, 1946, by surrendering such Bonds, with all coupons
thereto

Trust

appertaining* maturing on and after July 15, 1946,
Company of New York at its said office. '

and the

*The reasons for this separate
Bank, as provided
paragraph. The first report board with its individual chair¬
shall be made not later than two man had to do with the person¬
The will of Congress as to the years after the establishment of alities of the time. Cf. BW Na¬
the Fund and the Bank, and a re¬ tional Advisory Council in the
NAC is set forth in Sec.
4+of the
Bretton Woods Agreements Act port shall be made every two "Chroncile," Nov. 8, 1945, p. 2202.

Pelaware

June 14, 1946

MfcSS

S^d the appropriate Congressional

■'.'u

?vP«?rnatters
Aank

provision for regular conbetween this committee

V1',

Guaranty Trust Company of New York in the usual mannejr.

Gov¬

the
Federal Reserve
of the Fund, without prior ernors of
approval of the Council.
System, which shall meet at the
welfare of the country.
The
the weiia
"(5) The Council from time to call of the chairman. The
Advisory
might act as the
committee
time, but not less frequently than
.United states in
Board may make such recommen¬
every six months, shall transmit
iti which the articles to the
*
President and to the Con¬ dations to the Board of Directors
r0il
calHor a decision by
gress a report with respect to the as it deems advisable, and the
There should participation of the United States
Board of Directors shall consult
he

a';

Coupons maturing July 15, 1946, should be detached and presented
for payment to

ment

iuo

cease to accrue on

Upon presentation and surrender of said Gold Debenture Bonds at the
Corporate Trust Division of Guaranty Trust Company of New York,!
140 Broadway, Borough of Manhattan, New York 15, N. Y., on or after
said redemption date, together, in the case of coupon Bonds, with all
coupons thereto appertaining, maturing after said redemption date, said ;
Bonds will be paid and redeemed at the redemption price and interest
accrued thereon to said date of redemption. Registered Bonds without

Treasury, the
Secretary of Commerce, and the
Chairman

Guaranty

COLUMBIA GAS & ELECTRIC CORPORATION

in this

The Law on

NAC

;

'
''f

Dated: Wilmington* Delaware
June 14,1946

By: DALE PARKER
Secretary and Treasurer

THE COMMERCIAL & FINANCIAL CHRONICLE

3378

Thursday, June 20, 1946
M,.

resulted in these banks' going principally into
obligations that vhave
maturities of more than 10 years. .'.
It has meant that these

Edward L Mass How
"Our

With E. M, Newloo Co.
!

BOSTON,

deposit

Reporter

MASS;—Z&s-M* New*

banks have gone largely into securities that are due in six
years or
less.
While there has. been some lengthening of

Governments99

ing

By JOHN T. CHIPPENDALE, JR.

ton &. Company, 201 Devonshire
Street, Boston investment dealers,
Announce that Edward L. Mass

The Government bond market continues to

has not been such
on

marked extension

to have

the future liquidity of these institutions.

maturities^ it
important bear¬

ThO Treasury announced the1 retirement of $2 billions of
certificates on July 1st, out of cash, which is in line with ex-

display a good tone

as prices move within narrow limits. .,. The technical position of the
pectations.
The debt retirement program from now on will *
joined their organization, fol¬ market
improves as securities move from weak to strong hands. *
.
be confined to certificates and notes.
4
lowing military seryiee since 1943* Although institutional buying has been somewhat more substantial
He served as a Major in the Army
than in the past, there is still a waiting, let's-see attitude, among F. R. B. CREDIT CONTROLS
Air Forces, Prior to entering the
some of these purchasers, who hold the opinion that they will be able
The Federal Reserve Board's report on credit
policies, recent#
Army he had been associated to
acquire securities at prices better than those presently prevailing. transmitted to the Congress, proposing direct control over
security
since 1930 with the New York
.,, Consequently a good trading market is still
looked for.. * . Sav¬ portfolios of commercial banks and the abandoning of interest rate
Trust Company in their Invest¬
ings banks have recently been repbried to be the largest purchasers changes as a credit control, would be a radical extension of Gov¬
ment and Trust Departments.
of the restricted obligations, with a sizeable amount of the Victory ernment
power over the banking system.
Whether Congress will
'•'"I-!'feLoan 2Y4S and 2%s being taken out of the market by these institu¬
grant the asked for changes, in credit policy, as well as the re¬
tions.
Also it is reported that there has been considerable sultant effects on the Government securities
markets, seems to be
switching out of the June and December 2s of 1952-454, by non-bank a matter for future to decide.
holders, yet these bonds have acted well market-wise. * . .
.

has

■

Hudson Motor Car

...

Stock Subscribed for

v.J

This would

Hudson

the

Stockholders

subscribed to

Motor Car Co. have

the retirement of high income obligations.

220,081 shares of additional com¬
stock,

mon

without

par

value,

to indicate that the deposit banks are con¬

seem

tinuing to find funds with which to acquire securities, that have
a maturity long enough to offset some of the income lost through

INVENTORY

(Continued from first page)

INCREASES

Britain,

of
The New York City member banks continue to add to their
the basis of holdings of Government bonds, with their inventories of these se¬
share for each curities going to another all-time high last week, when they pur¬

which were offered to holders
record of May 27 on

additional

one -

The subscrip¬

shares held.

seven

tion price was $22 a share and

the

expired at 3:00 p. m. on
12.
The remaining 6,892

rights
June

have

purchased

been

W, E. Hutton & Co. and associates
privately.

and have been sold

Iseman to Admit

chased $61,000,000

of these obligations.
.
The member banks in the
Central Reserve City of New York have been consistent buyers of

Government
of

bonds, and this may be responsible, in part, for rumors
requirements in the New York and Chicago

increase in reserve

areas.

This raises the question as to whether an increase in re¬

requirements in the Central Reserve Cities would permanently
halt the trend toward longer maturities which has been in evidence
for some time, among commercial banks as a whole. . . .With their
positions in the shorter Government obligations such as to take care
of any loss in deposits, these institutions have been moving into
longer maturities in order to make up income that has been lost
through the debt retirement program. .
serve

Donald

the

New

will acquire

B. Iseman

Stock

York

partner¬

Street, members of the New York

tions.

Exchange, on June 27.
:
.

(trend

toward

than

ship in Iseman & Co., 60 Beaver
Stock

this

banks, at the end of February,

membership of Harold M. Iseman
and will be admitted to

...

These figures would seem to

1—

indicate that the commercial banks

liquid enough to meet any demands, despite the fact that they
have been moving into somewhat longer-term obligations. . . .
are

EQUIPMENT

requirements should be upped to 26% in New York
City and Chicago by the Federal authorities, would the banks in
those cities be likely to confine their purchases to certificates or
notes and refrain entirely from purchases of bonds? ... As long as
these institutions are in a position to meet deposit demands and in¬
creased reserve requirements through the sale of short-term obliga¬

TRUST

reserve

tions, it is considered likely that they will continue to take on longer
maturities in order to make up some of the income lost by the re¬
tirement of high coupon obligations.

Offerings Wanted

firm

bids

Although there is

definite trend among the commercial banks

last year held only

$38,000,000 and $56,000,000 respectively, of the

eligible, bond, and $88,000,000 and $5,000,000 each of the 2V2S due March 15, 1956/58, the
next longest obligation in the eligible list of securities. . . . The
2Y2S due Sept. 15, 1967/72, the longest bank

upon

Chicago at the close of 1945

member banks in New York City and

reported positions in the ineligible 2*/2S due Dec. 15, 1967/72, which
acquired during the Victory Loan, of $56,000,000 and $4,000,000.
Holdings in the 2Y4S due Dec. 15, 1959/62 amounted to $4,000,000 in New York City and $2,000,000 in Chicago. . . .
were
.

Semi-Annual
Valuation and

Positions in the partially exempt

Appraisal

year,

among

in which he forced the Brit¬

ish

negotiators

December 31.

Monthly or Special
Appraisal: V

experience and facil¬

York City and
in the longest

granting of the
loan, instead of after 5 years or
more as

STROUD & COMPANY

due Dec. 15,

issue among these deposit

banks were held in the amount

000,000 by the New York City institutions,
owned

clause of the Bretton Wood plan,
under which Britain is entitled to

apply discriminatory
against the United

not

the

demand

$104,000,000..

of $309,-

while the Chicago banks

however, and

conceded,

was

When

following

less than

The largest position in the 2%

bonds/ among the member in?

end of 1945, was
In the September 2s of 1051-53, which amounted to $1,254,000,*
000 and $76,000,000 respectively. . . . The next largest holdings
were in the 2s due December 1952/54, which aggregated $991,*
000,000 in the New York City area andl $53,000,000 in Chicago..,..

•

;

Lord

that his place as British Governor
the
International

Monetary

the International Bank

for Reconstruction would be filled

by Mr. Dalton himself, those who
knew

both him and Mr. Vinson
viewed the prospects of direct ne-r

gotiations between the two with
gloomy forebodings.
They fully
expected a sharp clash of per¬

sonalities, with incalculable con¬
sequences
on
American-British
financial

Mr.

relations.

For

Mr. Dalton is fully

way

Vinson.

The

his

tough

two

men

expected to rub each other
the wrong way. Some of Mr.
Dalton's British opponents were
secretly pleased at the prospects
of him being treated in the same
way as he treats the Opposition
were

the

House

satisfaction

derived

from

Commons.

But

they might have
this

have

would

been meagre compensation for the
deterioration

Anglo-American

relations.

eventually

Little is known here about Mr.

On the whole,

successor.

senior of¬

official circles do not expect Mr.

Snyder to be any moi'e concilia¬
tory than his immediate predeces¬

one

the

unwitting
cause
of
Lord
Keynes's death.
His uncompro¬
mising attitude, the way in which
he

"steam-rollered"

all

Lord

sor

has been. But those who knew

Mr. Snyder
a

hope that, as he is of
totally different type than Mr.

Vinson and Mr. Dalton, there may
not be

sonalities

Conference

May has un¬
doubtedly
distressed
the
chief
British financial negotiator very
gravely, and the theory that the
strain of
hard bargaining with
such a tough opponent has aggra¬
vated the latter's advanced heart
trouble cannot be ruled out

Mr.

Vinson's

before

im¬

possible.
the

blocked

rqcent statement

House^of Representa¬

sierlingry balances

also

caused much resentment in Brit¬
ish official circles. It placed Mr.

Dalton

in a very ;awkward posi¬
tion, because heAbecame subject

attacks in Parliament and the

about the actual i|erms on

which

the ' blocked • balances are«to be
settled. All that is supposed to have

that'; some amounts

mentioned during the course

loan negotiations, i>yt way
illustrating withy the aid of
concrete figures the possible meth¬

the

balances.

settlement
There

quite such
as

would

clash of per¬
been if

have

Mr. Dalton had to meet Mr. Vin¬
son

at the conference table.

Federal Mf& &

Stock Placed

Eng.
Market

tives Banking and Currency Com¬
mittee on the settlement of the

were

years. *.

Loan

announced

was

Vinson's

There is at least

the

ficial of the British Treasury who
is convinced that Mr. Vinson was

happened

stitutions in New York City and Chicago, at the

REctor 2-6528-29

the

dropped.

new york city

Philadelphia* Now York

International Monetary Fund de¬
clares dollars to be scarce. This

It is reported that the bulk of
recent acquisitions by the commercial banks as a group has been
in the 2s due from 1950 through 1952. . ,.
*
mature

PHILADELPHIA

Teletype—PHLA kW A Wl

restrictions

States

of the

Pennypacker 7330

Two private wire*-*

under the Bretton Woods

plan. He is also understood to
have attempted to force the Brit¬
ish negotiators to renounce the
use
of
the
"scarce
currency"

Although the Central Reserve City banks have undoubtedly ac¬
quired^ longer^teripr bbligations^LsinCe the end of 1945* it is .believed
that the greater part of these purchases have been in securities that

eleventh

months after the

MATURITY PREFERENCE

INCORPORATE!?.

the

hour to agree that sterling should
be
made
convertible within
12

1960/65 were owned by the New York British
Press, and was unable to
City member institutions lb. the amount of $104,000,000, while those
defend himself adequately with¬
in Chicago totalled $109,000,000. . . . The 2%% due June 15, 1958/63
out thereby weakening the
were held by the New York City banks in the amount of $87,000,000
chances of the ratification of the
as against the positions of the Chicago banks of $74,000,000. . . . The
loan. The British version of what
holdings of the 2%% of Sept. ?15, 1956/59 were $84,000,p00 in the
happened is understood to be that
New York City area, compared with $108,000,000 for Chicago. . . .
there have never been any nego¬
The 2% % due March 15, 1955/60, the most popular partially exempt
tiations with thf; United; States
The 2%%

disposal.

obligations, at the close of

the member banks in New
Chicago, were far in excess of itheir holdings
eligible taxable securities*.. *
last

issued each June 30 and

ities at your

Complete dollar appraisal

Our

ular resentment over here was the

Keynes's death it

nah

toward longer maturities, it .is interesting to note that the institutions
in the Central Reserve Cities of New York and Chicago at the end of

Gladly furnished
request.

negotia¬
tions that led to the Loan Agree¬
ment of December 6, Mr. Vinson
established his reputation for hard
bargaining. What caused partic¬

Agreement.

Fund and

During the prolonged

way

Article

yond

Keynes's proposals at the Savan¬
CURRENT PORTFOLIOS

Weekly List

indeed.

practically all issues.

Mr. Vinson insisted on
terms compared with which those
proposed by the Final Act of
Bretton Woods were very lenient

was

HOW WOULD BANKS REACT?

CERTIFICATES

Immediate

longer maturities the deposit
(latest available figures) showed
67% of their holdings due within five years. . . . Se¬
curities maturing from five to 10 years aggregated 25.2%, so
that the total due within 10 years amounted to more than 92.0%
of the entire Government securities holdings of these institu¬
Despite

Exchange

Britain Views Vinson Transfer

was no

underwriting group headed
by Sills, Minton & Company, Inp.,
A. G. Edwards &

Sons, Butcher '&

Sherrerd and Boettcher & Co.

June 14, is offered 116,000

shares
($1 par) common stock of the
Federal Manufacturing & Engi¬
neering Corp'n at $5 a share.
Others in the underwriting group

Chaee, Whiteside & Warren,
Inc.; ;Blair F. Claybaugh & Co.;
Investment Securities Co.; LinkGorman & Co.; Park-Shaughnessy
& Co. and Dudley H. Waters &Co.
Federal Manufacturing & - En¬
gineering Corp'n has its principal
offices in Brooklyn, N. Y., and is
engaged in. the manufacture and
are:

sale
and

of • photographic apparatus
scientific educational toys. ...

The offering represents

49.57%

of 234,000 outstanding shares, all
of which are owned by four prin¬

cipal]? in the company. Corpora¬
tion does not participate in pro¬
ceeds of the sale.

-;;

/ / ^ J.

sterling

proposal

Stein Bros. & Boyce to

also

thus

informallymentioned

—

;

$ome doubt has
Admit E.
arisen whether the figures

either side.

were

BALTIMORE, mrr^teip ;Bro^

& Boyce, members of the New
Vinson. There
York and ^Baltimore Stock Exr
is certainly some* confusion, for
the 5 figures he quoted conveyedj change and other leading Ex¬
those quoted by Mr,

nothing

to the British Treasury.
however, in a

Mr. Dalton was not

changes, will admit E. Elwood
McClureZ ia partnership in; thp
firm' on July 1. Mr. McClure lias

with;positions jppsitibn'yto:* state this/In-/Partial
City member banks, meat, and had to. oonfine; himself been with the firm for some time
,;
Although the to declaring that the British .Govt in charge of the Cumberland, Md.
* " li;.4;/ -Ar
large city member institutions have been buyers of bonds it has not ernment had no commitment be¬ office..:'.' V
The 2% due September

1950/52 were next in line

amounting to $932,000,000 among the New York
with those in Chicago aggregating $58,000,000.

3370

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4500

Volume 163

MM
—

the highways of a still
civilization.
; carrying the metaphor too
far to say that ihe world for your
generation has all the possibilities
of a strong, healthy, well-bread
If you do-pjsfejo better than we colt just waiting to be broken?
Your task, as I see it, is to tame
have done, the world won't be a
roll

Material Progress

Lacks
Spiritual Development

over

young
Is it

{Continued from page 3356)
world's economic, political and so¬
it and dedicate it to the welfare of
cial life. It has run far, far ahead happy place Jo live in 20 or 30
mankind.
of spiritual and moral progress. years from now. For your protec¬
Spiritual progress has been hin-. tion, and the. protection of the
dered by the moral disintegration families youJ%ill establish, you
incident to the two greatest wars must do a ftefter Job with life,
in history. The whole world now and with thefState than we have

,4-

Prize Donations at

backward

accepting,

It. Y. Dealers

Securities Salesman's Corner
By JOHN DUTTON
One of the best stories we've heard in a long while was
us

the prices of verything, is that buyers are
it is a welcome note to hear that investors, at least, are
MARKET PRICE AND NOT

paying THE

In this instance, a salesman,

MORE,

cooperation of his firm, made it their joint business

with the ethical

to see to it that the customer even got a better

Outing

told to

regarding
being held right and left,

In these days, when practically all one hears

last week.

break than that which

the original contract price provided.
This salesman offered a small block of an

attractive, unlisted
would like to
The Outing Committee of the
which all admit are correct. Pri¬ leave with yotjrls simple. You are New York Security Dealers As¬ security to his customer, and^fter^ some consideration the client
decided that he would purchase the securities at a fixed price.
The
vate morals, social ethics and in¬ inheriting a huge mass of undi¬ sociation received the following
salesman told the customer that the market was inactive and that
ternational harmony have failed gested knowledge and wealth only donations
of
merchandise, etc.,
the price at which the purchase could be made was fourteen dollars
to keep pace with scientific and lately acquire by civilized soci¬ through the generosity of the fol¬
a share.
This was agreeable to the customer and he gave the sales¬
economic conquests.
ety. The generations which ac¬ lowing member firms and corpo¬
man
an order for four hundred shares.
Within an hour after tho
cumulated t|*s new knowledge rations:
r$- Philosophers from the begin¬
sale was made, the firm made a purchase of an additional lot of this
ning of time have sought to cata¬ and added ^jalth have not had
Buckley Bros., one $20 gift cer¬
same stock, and replaced the position at a cost which, in the opinion
logue ihe 'goods' of life.
Most time to learivjhow to use them tificate; Herzog & Co., one box
of both the salesman and the firm, would justify reducing the price
men and
women think
they can wisely and jygll.
It is up to you golf balls; Hourwich & Co., one
of the. four hundred shares about a quarter of a point,' c.4 P%.
tie happy if they have health, can to take whafftyou have inherited, $25 war bond; Lebenthal & Co.,
The question next came up as to whether the client would misft
love and have the love of others, fuse it into society, and assimilate one book; J. F. Reilly & Co., three
understand a reduction in the price if it were offered.
Perhaps he
are endowed
with special talent it into yourselves.
bottles of liquor; Security Adjust¬
Above allftypu must correct the ment Corp., 1 leather wallet; Se¬ might think that such a price reduction voluntarily made, would
permitting creative accomplish¬
indicate that the stock in question was not as attractive as originally
ment, can experience ihe thrill of lack of balance between human curity Adjustment Corp., one sil¬
suggested by the salesman. But the salesman had handled the matter
•power
over
other people
and and material^pjogress. The mind, ver key chain.
of marketability and the inactivity of the stock properly in the first
Outside donation as follows:
things, can possess riches and ac¬ and, even more, the heart of man,
instance.
He had told his customer that such was the case, and he
Travellers
Luggage
Co.,
one
quire fame. The average person, must be conditioned to a compli¬
knew that his client was well aware that the market was thin.
This
if he stops to think at all, feels cated environment. Mankind must large
electric grill;
Berg-Holzwas an instance where the investor knew what he was buying and
•that if he had these six things, learn to mak§4consiructive use of man, Haberdasher, one $10 mer¬
was well satisfied to hold this stock for a considerable period of time.
namely: health, love, talent, pow¬ things which can be and have chandise certificate.
Besides the above, the Commit¬ Capital appreciation over the longer term was the objective behind
er, riches and fame, the ends of been abused?*
-ft
I
don't
know how long this tee received cash donations total¬ the purchase.
life would be in his possession.
The decision was agreed upon that the following day the sales¬
That, whether you realize it or faulty human animal called "man" ing $833.75 from the following
man would telephone the customer and tell him that the price was
has walked the face of the earth. firms and corporations with which
not, is popular private opinion!
»The past 50 years have taught it, The rocks seem to say that he has approximately over 70 prizes were voluntarily being reduced to the extent of a quarter point on the
whole transaction. The next day the salesman did this, and explained
wih special emphasis on accom¬ lived on this planet for at least purchased:
to the customer that a fortunate purchase had been made by his
Allen & Co.; Amott, Baker &
plishment, riches, fame and pow¬ 200,000 years. Yet, so far as we
firm of the same stock which he had sold to him.
He told him that
know, civilization is only 10,000 Co.; First Colony Corp.; Fitzger
der.
aid & Co.; Geyer & Co., Inc.; L. J. a new confirmation was being sent, showing a reduction in the price,
J Indeed, most of the boys of my years old; and our capitalistic eco¬
and that his customer should send a check for a hundred dollars less
generation had indoctrinated into nomic system hardly dates back Goldwater & Co.; Greene & Co.;
The customer told
Hourwich & Co.; R. H. Johnson & than that for which he had originally contracted.
their souls the ambition to rise as more than 200 or 300 years.
On that basis, man has been Co.; Joyce, Kuehner & Co.; A. M. the salesman that he appreciated this very much and the next time
a
second religion—I fear some¬
he was in the neighborhood to drop in and see him.
£
times- as
a
religion more im¬ civilized only 5% of his animal Kidder & Co.; H. D. Knox & Co.;
of

part

life,

ethical

standards

than any true spiritual
With this materialistic em¬

portant
value.

The

picture,J

life, and has lived only 3% of his
civilized life under an economic

Koller

hurst

Co.; F.

Co., Inc.; LuckJ. Rabe & Co.;

phasis on ambition for ambition's and social system somewhat simi¬ Roggenburg & Co.; Strauss Bros.;
C.
H.
Tipton Securities Corp.;
sake, they, or many of them, went lar to that under which we live
Troster, Currie & Summers; C. E.
out into the world and accom¬ today.
I guess we are a little impa¬ Unterberg & Co.; Ward & Co.; J,
plished miracles in the fields of
/■business and trade, in the area of tient when we expect too much Arthur Warner & Co. and M. S.
science and invention, in engin¬ too soon. Progress always is ac¬ Wien & Co.
Members
of the
1946 Outing
eering, in creative building, in the companied with "growing pains,"
t

organization and regimentation of
money and capital, and in influencing the opinions and emotions
of the masses.
Their conquests

♦

knew

bounds.

There was no

"impossible" in the
vocabulary of those who built the

such word as
'

world's

The

those

troubles, like
old lady, are

worst

the

wise

examined,

feels a rising sense of futility,

of course, is that the
-J most important of all the "goods"
v

•

One reason,

I of life, as
*

book

pointed out in a recent
Leibman of Bos-

by Rabbi

ilton,

is "peace of mind."
Peace of mind is not a material

| value, but a spiritual one. This
ft last generation has not sought
$ spiritual values, so it hais not

able to
We
and

extricate it.

practg||$t|tism at home.
eleeted

Our
their
bor

leaders

delegate

"-lost it.
I would almost go as far as to

if; say that the very striving for
r striving's sake, which has been a

| very real part of the intimate per¬
ianal life of most Americans for
J the past 100 years or more, has
Vmade peace of mind a

i&ho tell

when

work priest, when we may

have

lightiS&t and

may

^tevel;

have the

power;

thing to be

when

■

Join James D. Gleland

Free

marl^ts

thb true

The

James D. Cleland
50

involved.

longer exist in

now

serfee.i|

our

forth iri the

preamble to our Con¬

that

Morris

his

Sitkoff

has

released from
United States

stitution hasbeen lost.

fortunes

& Company,
T.

but not
I

are

country's

seijous;"

1
/

ates, of

to you gradu-

this and other institutions

the

Army

with

COLUMBUS,

determined

nand

to why this salesman go that

list

promise "if

business

Tilton Joins Hare's, Ltd.

Opens Firm

(Special to The Financial

SAN

Chronicle)

FRANCISCO,

CALIF.—

FRANCISCO, CALIF. — Ronald Tilton has joined the staff
Walter A. Nelson is forming Wal¬ 6of Hare's, Ltd., 19 Rector Street,
ter A. Nelson & Co. with offices New York City. Mr. Tilton in the
at 111 Sutter Street, to engage in past was with Independence Fund
North
America
and
prior
the investment business.
In the of
SAN

past he was with Hill Richards &
Co. and prior thereto conducted
his own
investment business in

thereto

officer of Hewitt

cisco.

was

Co., Inc., and. conducted his own

investment business in San Fran¬

Airline Foods Corporation
5V2% Cum. Conv. Pfd. Stock

the

of' the
rank of

Kaufmann

—

Herrick,Waddell & Co., Inc.
55 LIBERTY STREET, NEW YORK

American

5, N. Y.

Fruit Growers Inc., Com. 7

Arden Farms Co.,

Ferdi¬

Pfd. & Com.

;

has

;

Fullerton
"

•

after serving in the

previously with the firm in the
Cleveland office.

Oil Co., Com.
If ft, ft
'

WagensellerSDurstJnc.Members Los

Angeies Stock Exchange

€26 SO. SPRING ST.

R. Clark

genera¬
you

OHIO

Prospectus on request

armed forces. Mr. Kaufmann was

that you

which to;live:tBut it is
tion of great

Broad Street,

and

Opens

CITYy OKLA,—
Robert A. Clark is engaging in
the securities business from of'

Xices in the Apco Tower

Building

TRINITY S761

:ftV'

;--:^ LOS ANGELES 14

OKLAHOMA

can

well -aware harness the. hearts and souls of
generation, In some je- mankind; hif6;ithe scientific and
material vehicles now
waiting to
ipects, has made a sorry record.

Walter Nelson

Common Stock

rejoined
the staff of Bache & Co., 16 East

of learning, we are

that our

will

recently

been

Rejoins Bache & Co.

wouldyenture to observe that

and

why

head

Captain after service in the Paci¬
fic Ocean area with the Corps of

we|||$t0 lowest ebb in

serious

and

Sitkoff is

associated with them

Mr.

lives in the

•4 half of the century

might be appropriate.

There is only one answer as

of the trading department.

>|doin^stiS tranquility" set

believe in the kind of life
who have lived most of
under which we have lived and
first half, of the
Twentieth Century, turn over the advance&;4
This ji no slap-happy time in
active management of the. second
As we,

he thought

Broadway, New York City, an¬

nounce

beginning to learn that there can the outlook fo* the second half of
be no sound economic conquests the century foi* you young people
unless comparable social contri- is hopeful to the extent that you

•; butions are

another list which belonged to the sister

may

require.

"good" which many

1 the contributions we make to human values.
I think we are just

was

when

this last; Wa^refnarked that Eng¬ Engineers and as Assistant Chief
people consciously have avoided. land's bositlpn iWas "serious but of Staff G1 in the Western Paci¬
4ft The 'mainspring of economic not hopeles^fftDeValera, when his fic Base Command.
J. A. Hacker, formerly of Dis¬
to the
I; progress is the profit motive, and, country w^sg subjected
World Wa^ jr economic embargo, tributors Group, Inc., is now as¬
;! of all men, I would be the first to is
said
1 defend it. The highest satisfacto;|hav§ commented that sociated with the firm as Cashier.
Ireland's condition was "hopeless
4 tions of life, however, often are in

| feared, and

the salesman had ever imagined this client owned.
of this investor, and
over which he had complete supervision.
The salesman scanned the
list and before he could say much more, the customer told him to
take it back to his office and suggest any changes and revisions which
It

San Francisco.

powe^ to a handful of la¬ Page Mason, Allen & Co.

bosses"

may

abroad

preach -democracy

& Co.; Stanley L. Roggenburg,

Roggenburg & Co.; George A.
Searight, First Colony Corp.; Ber¬
tram Seligman, Ward & Co.; John
H. Valentine, John H. Valentine
Co.; Melville S. Wien, M. S. Wien
& Co.; assisted by Alfred E. Loyd,
Alfred E. Loyd & Co.; and R.

Responsibility, equality, the
In fact, by sanctily
offtpontracts, the princi¬
seeking other things, it often has ples of
majority, rule are ignored.

Joyce, Kueh¬

E. Kuehner,

Harms
ner

I found peace of mind.
*

John

Jr;

O'Kane,

Jr. &
Co., Chairman;
Chester A. Alberts, C. A. Alberts

one

The customer turned

much larger than

were:

O'Kane,

happen.

Industry, developed the trade, or¬
ganized and expanded modern
ment.
government, and twice fought ihe
,"iHS
/foreign enemies of what we reIndustry^ ptill in a straitjacket fromS;4vhich the govern¬
garded as "our way of life."
th After each one of the "goods" of ment has jjqti yet been willing or
life has been critically

John

later.

portfolio of securities to the salesman and said, "You didnt
think I had this account too, did you?"
It was a list of securities
a

than ever before with this
customer.
CONFIDENCE IS BUILT UPON FAIR DEALING, TELL¬
Nevertheless, here are prob¬
ING THE TRUE FACTS, AND DOING UNTO OTHERS THE WAY
& Co.; Richard M. Barnes, A. M.
lems you need to keep in mind.
YOU WOULD WISH THEM TO DO UNTO YOU.
The golden ruleWe have® staggering national Kidder & Co.; Leo J. Goldwater,
it still is the best policy for conducting any business.
In the long rundebt and, J$£|jfet, no clear fis¬ L. J; Goldwater & Co.; Herbert
there can be no better way,
cal policy;
ovide for its or¬ D. Knox, H. D. Knox & Co.; F. H.
derly retifejnpnt or its manage- Koller, Jr., F. H. Koller & Co.;

those that never

Committee

This the salesman did a few weeks
over

TeletyH 14 68
Mirk.t Quotation*

and Information on «ll

■

California SacorHM

THE COMMERCIAL & FINANCIAL CHRONICLE

3380

prospects the recently issued Fed¬
eral Reserve Board Report would
tend to bear out previous sugges¬
tions of caution in extending com¬
mitments. Although the wartime
pattern of interest rates will be
maintained for the time being it

WILLIAM McKAY

greatest ex¬
By grace of
country, the 3,897 miles of southern border re-

under-pooulated Dominion of Canada has the
tent of unfortifiedfrontier of any country in the world.

must

its proximity to this
ouire no defense and

and

The

are

the contrary are uniquely guarded. On the
vividly obvious that the Dominion s far flung

polar front is woefully unguarded.
Thus a newly recognized re-"1"

Canadian Securities

approaches to the northern
planetary roof have suddenly as¬
sumed the most vital importance.
In addition, it must not be over¬
looked that the immediate hinter¬

ern

rapidly becoming

the, glaring vulnera¬
bility of Canada's freshly discoverered strategic outposts poses an
awkward problem for British Im¬

Direct Private Wires to Buffalo,
Toronto and Montreal

it woud appear that
the ultimate full exploitation of
In this way

Canada's unique source of wealth
Laurentian Shield

—the fabulous

Corporation
40 Exchange Place
New York 5, N. Y.

Military necessity

override

will
and

imme¬

matter of the

railroads

and

corporate purposes.
The preferred stock is

highways

tible, based
share, into

linking the north with the south
will repeat the miracle achieved
in the south by the construction

Teletype NY 1-702-3

of the

Pacific railroad

Canadian

system. In this effort capital from
Britain
and this country could

play a notable part. Finally with
ready
access
to
the enormous

eventual¬
ly adequate population will be as¬
sured. In this way military de¬

CANADIAN BONDS

offensive

might

turning

demand

York,

the

caused

re¬

sharp

91/4%.
purchases
were induced by fear of restric¬
tions on subscription to the forth¬
coming Canadian loan. As pre¬
viously suggested it is likely that
the Canadian Department of Fi¬
will1 take

nance

additional

A. E. AMES & CO.
INCORPORATED

external

result

bonds

reasonable

all

the

internal
of

hands

NEW YORK 5, N. Y.

NY-1-1045

the

non¬

almost stationary

exception

June

& COMPANY
64 Wall

Street, New York 5

WHitehall

Namm's

the

effecting of

any

extent of

bonds,

long

inquiries of that type and

sale, is permissible.

nected

with

modernizing store
equipment and increasing inven¬

tion

financing, capitaliza¬

Such information may

to the number of

violation of law,

Government

stock.

There

funded debt.

are

which is legally issued after

not in

sympathy with violators of the law. They

punished.

The mandate of the statute is clear.
The

authority of the Commission to impose penalties is

also clear under Section 15A (1) (2).
The Securities

and

Exchange Commission may, upon

appropriate notice and opportunity for a hearing, suspend
for

period not exceeding twelve months, or expel from a.

violates

provision of the Securities Act of 1933.

It has exercised such power.

the Securities Acts,

Provincial

Corporate

come

Heller Branch in Maine
Stanley Heller & Co., members
New

York

are

also for continuance of that custom under

which

dealers and investorsthe time of the filing and the final effective

underwriters listen to inquiries from

THIS

registration statement.
NOT

SHOULD

CUSTOM

Me.,

Exchange,

are

Springs Hotel, Po¬

with

direct

Incorporated

Street9 New York 5
to

INTERFERED*

WITH.

Frank W. Morrow to

Henry Cuscaden Wills

Stesumelnv. Business

MH. Davis & Co.

Morrow

OHIO

—

Frank

will shortly resume
business under the
of Morrow and Com¬

his investment
firm name

CHICAGO, ILL.—Henry J. Cus¬
caden has become associated with
Paul H. Davis &

Co., 10 La Salle-

Mr. Morrow has been serv¬ Street, members of the New York
and
Chicago Stock Exchangesseasonal branch office ing in the U. & Marine Corps for
the past four years. Prior thereto
Mr.
Cuscaden in the past was:
Stock

Sold —— Quoted

Direct Private Wire*

has be¬
land..

effective, just as they should other laws of the

private

pany.

he conducted an
ness

the

investment busi¬
member of

Cleveland as

Cleveland Stock Exchange.

manager

of the Municipal Depart¬

ment for John B. Dunbar & Co.

FOB

HELP WANTED

•

POSITIONS WANTED

OTHER CLASSIFIED ADS

Wood, Gundy & Co.
14 Wall

provisions of

including the prohibition against deal--

ing in securities before the registration statement

CLEVELAND,

5% First Mtge. Bonds, due June 1, 1965

M unicipal

registration statement has become duly effective.

CANADIAN
SECURITIES

ultimately be verified through

consists of 324,000 shares of

common

3-1874
—-

exchange

With this

immediate 1 wire to their New York office.

Bought

order results.

as no

Abitibi Power & Paper Co., Ltd.
.

Memoranda of the

even, as

believe not to be

the medium of the prospectus

the

however, the acceptance of orders

inquirer's interest,

hour of

corporate purposes, in¬
cluding payment of expenses con¬

land,

regard

We maintain that

of information without,

general

at the Summit

With

type, the real difficulty arises not

We believe dealers should adhere to the

Brooklyn, N. Y., department

ened

TAYLOR, DEALE

stock

common

slight opening

-3't 3

aware

case.

14 placed on the
shares of $1 par

100,000

flurry in Albertas which strength¬

fractionally.

entirely

being frequently short, a proposed issue
be widely discussed and publicized, and properly so,
and it is not unusual for many inquiries to be made concern¬
ing the proposed securities on the basis of the belief that
the registration statement will shortly become effective.

made between

from acti¬
vity in internal bonds the rest of
with

RECTOR 2-7231

was

that time schedules

The net proceeds will be used for

in the Dominion. Apart
was

defense where

conver¬

residents will have little basis of

the market

as a

may

employed public financ¬
ing. The issue was oversubscribed.

comparison with those held with¬
TWO WALL STREET

■

from clear infractions of the statute but rather from the fact

value of $35 per

tories.

indebtedness.

Dominion

In situations of this

store has

to deter the creation of

measures

value

old

It is possible that these

CANADIAN STOCKS

sents

in free funds to

recovery

The Commission has held that lack of willfulness in

Inc. at $11 per share. This repre¬
the first time the 70-year-

internal
a

numerous.

disciplinary proceeding will not prevail
the proof indicates that the respondent
of all that it was doing.
vj/!-

should be

Alstyne, Noel & Co., New

market

was

for

not

they exist, these may be evidenced by
of "buy orders" or by copies of confirmation.
? ;:

records

Issue Oversubscribed

Market Action

Dominions which

CORPORATION

well
point
in

very

During the past week the salient
newal

are

When and where

gen¬

Namm's Common Stock

economic

Van

feature of the market

MUNICIPAL

clear violation of the law.

registered securities association any member thereof who-

history.

GOVERNMENT
PROVINCIAL

that

constitute
world

on a

any

Such infractions

common

dividends in each

riches of this region, an

fense would combine

for

stock, at the
basic conversion price of $26.25
per share.
The new stock is re¬
deemable on 30 days' notice at
$37:50 per share on or before
April 1, 1951, and at $36.50 there¬
after plus accrued
and unpaid

BeU System

and

eral

geographical barriers.

New

receivable

accounts

economic

normal

-i;

Of course,

securities

machine tools for use by
company's subsidiary, Fageol
In addition, the com¬
pany will replenish its working
capital to the extent of approxi¬
mately $700,000, which sum has
been spent in the past two years
to
acquire buildings, machinery
and equipment at the main plant
in Kent, Ohio. The balance of ap¬
proximately
$1,090,000 will
be
added to working capital and may
be
used
for
improvements
to
plant and equipment, develop¬
ment of existing and new prod¬
ucts, carrying of inventories and

vulnerable North.

now

these

the

pressing. Military strategy is no
longer
concerned
with
the
dangers from the West and East
but must now concentrate on the

—is

sale

certain

perial defense. For this country the
even more intimately

diate future.

Dominion Securities

section also makes it unlawful

to be carried through the mails or in inter¬
state commerce by any means or instruments of
transporta¬
tion, any such security for the purpose of sale or for delivery

Products Co.

situation is

net

the

acquire a hangar
approximately 21 acres of
land at Buffalo Municipal Air¬
port; to acquire certain machinery,
tooling and equipment for use at
the Buffalo plant, and to acquire

obsolescent,

Exchanges, or at
New York Prices.

same

to carry or cause

and

world. With the old lines of

communication

headed

group

will be used to

concern
to Canada
alone but also to the entire West¬

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

medium of any

Subdivision 2 of the

effect is

banking

from

paramount

executed

Reynolds & Co. and Laurence M.
Marks & Co., on June 19 offered
to the public a new issue of 85,715
shares
of
$1.50 cumulative
convertible preferred stock, par
value $35 of Twin Coach Co., at
$36 per share. The net proceeds
to be received by the company

strategic materials. However, co¬
lossal the problem of defense, it
is today not only
a
matter of

orders

can

actual sale evidenced by confirmation
prior to the time that the registration statement is in actual

land, comprising as it does the
2Y2 million square mile area of
the Laurentian Shield, contains
the world's largest resources of

Stock

of another

'''

3343)^

buy such security through the
prospectus or otherwise;"

Of Twin Coach Offered

atomic age, moreover,

this aerial

bonds.

threshold

the

page

offer to

Gonv. Preferred Stock

the

MARKETS maintained in
all classes of Canadian
external and internal

use or

markedly different.

guardian of the northern
outposts of the Western world. In

stocks

(Continued from

the mails to sell

after sale.

sponsibility is thrust upon Canada

bonds

Issues in Process of Registration

at the end of one phase

now

that

mind

borne

where the basic- conditions

other hand it is now

Thursday; June 20,1946

Tor onto & Monlreal

SEE INSIDE BACK COVER

yolume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4500

ing

Act which has been renewed

ment in 1940,,

ships- and corporations of over
$112,000,000,000 these same insti¬
tutions carried loans, discounts,
and overdrafts of only $29,000,000,000, leaving an excess owned
by the customers of $83,000,000,000, or say 74%;
3
This ownership of deposits by
bank customers is of the greatest
significance when related to pres¬
ent
banking laws, bank invest¬
ment policy, Federal Reserve bank
powers over reserve requirements
and open market operations and
the control of the public's attitude
towards
purchasing
consumers'
durable and non-durable goods.

erally and

a Member of the Congress who believes in Our repre¬
sentative form of government and
who is very certain that the Con¬

not obso-

lete and

no longer of any value to
the people in their industrial activities. So believing in your in-

i:
'

•

dustry' and in the. usefulness of
Congress I think we have a mu¬
tual

ihstitutibh is

interest

being

here

to-

Those who have had occasion
to comprehend our State and Fed¬
eral laws as they affect the opera¬

tion of banks even after the indi-

?) vidual banking charter has been Insofar
granted and the capital - structure before
<

vestors.
was

influence

narrowing of spread

est rates for the

mitted for

Furthermore, it is of
that forces

ment

ance

-reaching amendments to Federal

is -

Eagerly awaited by the trade
an

should

doneabout

some

af:-

■

Importance

i»

indication

colors and in
no

doubt

tain
;•

v*?HQ

i:«

The

the

that left

least

•:

^■■>.

unsuccessful

group

to refund

000

was

authority*

its

bonds

outstanding $4,000,^basis, as

on> a*2%%

compared with the present rate of
\
The Commission operates

4% %■.
the

Rainbow
Bridge* ;between
Niagara Falls, N. Y.i and Niagara
Falls,: Ontario, land In consequence
of wartime conditions, including
immigration, gasoline and tire re¬
strictions, was obliged to default

bond interest.

The

On the other hand, we,

agents*

President Truman recently
signed a measure authorizing the
Niagara Falls Bridge Commission

from

were

Securities Corp., and Kidder, Peabody & Co. This group furnished
formidable opposition to the win¬

.■

teed by local taxation

ning National City Bank account,
the peo¬
they affect the
In deference to the size of the
having presented a tender that
operations of member banks of ple, banks and their owners, de¬
flotation, only two bidders were
figured out to a net cost basis of
positors, and every other citizen,
^ the Federal Reserve System.
represented at the sale, each of
1.6216%.
B
Only a few days ago when have this $270,000,000,000 debt. which,
however,
included
the
A significant sidelight to the
Chairman Eccles of the Federal Its management goes to the very
laws

their

Commission Kef. Approved

over¬

Co., Smith, Bayney & Co., Mellon

to its ability to re¬
its recent gains and quite

levels.

municipalities

bonds, the

Bankers Trust Co., Chemical Bank
& Trust Co., Harriman Ripley &

expands the act to
bonds issued by

revenue

Heretofore, it covered only gen¬
eral obligation bonds guaran¬

headed by Drexel & Co., and in¬

possibly forge ahead to higher

of Debt Management

Committee,
cover

cluded among its leading partici¬
pants the Chase National Bank,

market's

a manner

•

Representative: Gwynne (Sep.,
for the House Judiciary

Iowa)

Niagara Falls Bridge

This

;

3 $:i3
introduced by

measure,

variety of inter¬

inclusive, resulting in
interest cost to the city of

1.5959%.

absorptive power, the undertak¬
ing? met the test with flying

net

foregone conclusion.

Francisco.
a

1947 to 1996

primarily responsible

was

San

all maturities of which

for the market's strong perform¬

these matters.

are

now coming into
Bplay which will bring about far¬

issues.

That the Philadelphia achieve¬

in the United States

fact

course a

new

ciation,

bids sub¬

situation

are fully aware of the
legislative bodies may

cago, and the Bank #of America
National Trust & Savings Asso¬

account named

This latter development

clearly reflected in the clos¬

ing out of a number of open ac¬
counts, coupled with a noticeable

informed, never
the history of banking
I

The

j Buoyed by the phenomenal sue* principal underwriting houses In
cess that attended the
$29,100,000 the country.
The National City
financing operation by the City of Bank of New York, which headed
Philadelphia, the market for State the winning group, numbered
and local tax-exempts acted ex¬
among its main associates, Halsey,
tremely well the past Week, with Stuart & Co., Inc., Lehman Bros.,
dealers being able to report a Blyth & Co., The First Boston
sharp interest in offerings by in¬ Corp., Northern Trust Co., Chi¬

did ^ similar
prevail. Your industry,
j
have over the Operation of banks bank supervisory authorities, and
4- by reason of the, provisions con- a few Members of Congress are
tained in State and Federal laws. beginning to wonder what can and

completed

on a

yearly basis since its initial enact¬

(Continued from page 3343)

gress as ah

making permanent the
Municipal
Bankruptcy-

and

Federal

traiSlBanlt
I

forwarded to the Senate broaden¬

Federal Debt Management and

Commission

has

since

called for payment on July J,
1946, all of the original issue

414% bonds.

■

heart of politics.
No major po¬
ap¬
House Banking litical party can ignore the vast
social,
and
political
Committee I in- economic,

rapid

Reserve Board of Governors
peared before
and

Currency

quired

him

when

the

Board

expected to file with Congress its
recommendations for the revision
V of certain banking laws.
This re¬
port has,

closing of the successful
syndicate's books was the subse¬

our

probably know,

you

ramifications
debt

incident

such

where labor
monopolies
exercise
such
un¬
bridled powers as have been evi¬
denced

country

here in the United States

McGralh Sf. Paul Stock
Offering of 37,000 shares of
mulative
stock

flow of total national income, of
tax dollars to the Treasury, of so¬
be of great im| portance to not only commercial cial security "takes" to be in¬
3 banks but to all those who do vested in the special issues of the
attitude ! of the
^ business with commercial banks Treasury, < the
gas well as all investment houses, working and thrifty public to in¬
insurance companies, building and vestments in Government issues

report to prepare because what it

§ will call for will

loan associations and others
t
r
V-

who

and

purchase and sell Government

curities in the open market. I
derstand

from

Chairman

se-

un-

Eccles

that the report will be forthcom¬

ing within a short time. I shall
not be surprised if we have it be¬
fore the adjournment of the pres¬
ent Congress which is now sched>k uled for not later than next Aug.
34: to-10.
;•
^
Jpf

sumers' durable

and non-durable

goods, and many other less im¬
portant factors, are all involved
in these strikes.

OF PUBLIC
IMPROVEMENT GENERAL REVENUE
OF THE CITY OF SAN AN¬

to their allotments with

view to

i
BE IT RESOLVED BY THE COMMIS¬
SIONERS

1. That
will

3..'.?

■.

Ruled Uncdnstitiitional
The New
ruled
sales

Jersey Supreme Court

June

that

the

tax

imposed by Atlantic
at $8 per share on or before June City, N. J.,. was unconstitutional,
15, 1947, and at prices down to $6 thereby bringing to an end, at
for redemptions made after June lease temporarily, an extremely
productive source of revenue to
15, 1950*
days' notice

A*45

will permit me

years

without bring¬

ing great economic and social up¬
is to the effect that the forces now heavals to our people.
running will develop sufficient
Congress fully comprehends the
pressure to cause the 80th Con¬ oolitical fact that the Secretary of
the Treasury is a political apgress to act sometime shortly after
it convenes January of next year. oointee of the party in power.
Within five years the tota| as* This individual1 may be highly
sets of your insured banks in¬ qualified for the job or, speaking
creased 132% and on Dec. 31 last bluntly,
he may be. appointed
aggregated
slightly more than upon the basis of his. political
$169,000,000,000. While this was value to the party. Such a set of
resolve
matters
to
occurring the change in one major facts ; may
type of assets held by these in¬ where the actual determination of

stock

and

37,000

1940

name

Co.

Minnesota

Photo

Record

under

jumped

over

I refer to your holdings of
United States Government obliga¬

debt

of the industrial expansion
financed directly by the Fed¬

most

give consideration to the
politics of the general situation as
pressed upon him; by his Cabinet
colleagues and the President him¬

■

the

law,

obtained by the levy

Jersey coast
In

Government

volume

loans.
the

rather

commercial

than

date

industrial

Let this continue with all

possible for reasons
shall later point out.
speed

While
sured

Dec.

operating

last

banks

the

had

in¬

de¬

mand and time deposits booked to

the credit of

individuals, partner-

wise

assume

that the cost of

serv¬

"ff/i'y''

■■—in

——•—

l.v.

icing the present debt at the rate
the

various

will be

stratas

the

debt

of the maj or top

(if
not the largest single one) items
in the Federal Budget.
It will,
one

(Continued

on page

3382)

v?'*;.

Vincent Hale Director

of interest which now governs on

board meeting held yester¬
Vincent Hale,
partner of
Sterling, Grace & Co., was elected
a

day,
a

director of the Pere

Railroad.

Marquette
*

150,0064X1

the

denomiioar

mature

within

not

than

payable

216

cssop

per

semi-annually.

proposals

shall

made

forms

and

furnished by the City Audi¬
accompanied
by a Cashiers
check for $10,000.00, payable uncondi¬
tionally to the City of San Antonio
to
guarantee the performance of ttoe

proposal.
5. The
of

Bidder

interest

shall
which

state
the

the

rafte

Bonds

aie

proposed to be bought, not to exceed
2 Ya per cent, and the premium. If any6. The
Bidder
shall
pay
for
opinion of approval by Chapman 4a
Cutler,
Attorneys-at-Law, of Chicago,
Illinois, but the City will pay for the
printing of the bonds, and the City
will
furnish
the
opinion as
to
fche
legality of the bonds by the City
Attorney and the approval of the At¬

" in a class by itself" because
great fluctuations in its popu¬

was

of Texas.

torney General
7.

paid

lation, and held that other resort

Bonds

are

the
Antonio, Texas.

Long

for

Into

bid

the

;

delivered

less

for

City

and

City Treasury in Sua

interest

accrued

than

date

Treasury,

will

end

par

payment.
be con¬

sidered,
9.

The

reject any
10.

sale

tion

of San

mated 300,000 persons vacation
there each year.

City
and

Further

this

esti¬

All

propor¬

are

Both

bid

sales tax while At¬
lantic City is authorized to impose
one.
It denied that Atlantic City

but

2,000.089^

DISPOSAL*

$1,000.00

tor,

from levying a

residents

principal and interest* aae
payable
at
the
office
of
the
City
Treasurer in the City of San Antonio,
or at the
fiscal agency of the City
San Antonio in New York, N. Y„

equal damage and, in
should not be restrained

manent

;

27£3*

1,500,000*CO

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

annum,

to be

particularly

the

ADMINIS*

Bonds

per

tionately

the

period of 20 years, to be paid serlaBjr
in yearly installments, as
nearly equeft
as
practicable, to bear interest front

unconstitutional. It ruled that

effect,

AIRPORT

2. The

Sept. 14, 1944.

resorts suffered

TRATIONBU|LDINQ^-

tion

the Court's opinion, written

smaller

FIRE
STATION
BONDS ...................

by Justice Harry Heher, the law
was

office

U-45

used to repair damage caused
by the hurricane which hit the

o'clock

GARBAGE
BONDS

passed

were

of San Antonio

the

STREET • AND BRIDGE
BONDS * *. /*

sole

State

E-45

population
exceeded
50,000 to impose the tax. Funds

communities,

(Special to Tbs Financial Chronicl*)

1945

the

of the City

C-45

Branch
and
Asbury Park, had
BOSTON, MASS.—Edward %
Mathews Co.,.53 State Street, has equally vulnerable financial posi¬
the banks, with the end of hostil¬
added Garrett J. Burke, William tions, suffered as much or greater
self.
:
ities and with the beginning of
hurricane damage, and were vic¬
If we may assume that a post¬ Grant,
Abbott
W,
Lawrence,
the reconversion of industry there
war budget of sane proportions
James W. Murphy, and Peter Ta- tims of beach erosiop.
has been a sharp upturn in the
Atlantic City has 64,000 per¬
will prevail then we must like¬ vanis to the. firm's staff. ■ ♦
;
eral

AN¬

addressed to the

INTERREGIONAL

BONDS

whose

management

————-

the

was

Legislature,
which authorized shore resorts

acquire

j :

City

beneficiary

the

the photographic
equipment manufacturing busi¬
ness of another
company „of the
same
name
established in 1935.
In May 1944, the company devel¬
oped a wind-proof cigarette light¬

was

Atlantic

Equipment

fall to career men in the

bids

received

10:00

B-45
..

May 30, 1945, and during the 11
months' period has enriched the
city's treasury to the; extent of
more than $2,000,000.
n;

of *5 par value preferred stock.
The company was incorporated

policies may er sold under the trademark Gale
Depart¬ Lite. In addition, the company is
ment or to Department employees presently completing development
tions which on Dec, 31 last, ex¬ who have none too many qualifi¬ work for the production of home
ceeded $96,000,000,000. This most cations, for the job* And it. is con¬ appliances,
including automatic
coffee
makers,
metal
interesting development occurred ceivable that men who are outside electric
while your loans, discounts, and the Treasury and who carry no ironing boards, electric tea ket¬
overdrafts increased only 51.6% particular public responsibility for tle^ and electric blankets* It also
and your miscellaneous assets ac¬ Treasury policies may. exercise is completing plans for the pro¬
great and direct power in debt duction of shipping pallets.
tually declined 25.3%.
management. 4t~
There is, to me, an encouraging
The Secertary of the Treasury
sign in that while during the war
Join Edward Mathews Staff
must
institutions

sured

445%.

W<:

the company, upon completion of
this financing, will consist of 187,008 shares of 50 cent par value
common

sealed

HIGHWAY BONDS*..3.*.4^^

However, if you
to make a guess it

SAN

day of June, A. D. 1946, at which time
and place bids will be opened for the
sale of all or any part of $5,100,000*00
of Public
Improvement General Rev¬
enue Bonds to be issued
by the City of
San
Antonio,
Texas,
and
dated
the
1st day of July, A. D. 1946, said bonds
being in series and numbered as fol¬
lows:

Jbongress

adjourns.

until

City Sales Tax

3 The- play of these many forces
brings into the open-clear conflicts
in the opinions and policies of the
the famed seaside resort.
Treasury and the Federal Reserve
Imme¬
: Ifet proceeds from the sele of
authorities and the political ad¬
diately upon receiving the report
this stock will be used for general
ministration in power. It will be
of the Court's decision, Mayor |To«*
No immediate Action by
an
amazing example, of coordi¬ corporate; purposes, and for the seph Altman announced thatfan
^
I do not expect the Congress to nated effort if these three arms possible acquisition of chromium appeal would be filed with the
take any action upon the recom- of Government can travel the dif¬ plating facilities and other equip¬ Court of Errors and
Appeals, the
'
mendations that may appear in ficult road of Federal debt man¬ ment.
State's highest judicial' tribunal.
: Outstanding
of The tax has been in effect since
capitalization
agement during the forthcoming
gress

City Clerk of the City of San Antonio
in the City Hall, San Antonio
5, Texas,

Atlantic

preferred stock
30

CITY

fashion.

stock, based on an initial
price of $3 per share
on

THE

City Clerk

conversion

redeemable

TONIO—

to invigorate the entire
tax-exempt market in striking

Each share of preferred stock is
into
two ^shares
of

TEXAS.

TONIO,

possible markup of
10 basis points.

perhaps

$5,700,000.00

served

$2 per share.

The

Whatever the explanation, the
fact is that the operation proved
a
consummate success and

convertible

of common.

PUBLICATION OF A
PROPOSALS TO

BONDS

Co., Weil & Arnold and Link,
Gorman & Co. Inc. The preferred
stock is priced at $6 per share and

common

THE

INVITING

PURCHASE

Paul

NOTICE

hold

preferred
37,000 shares of com¬

common

A RESOLUTION
DIRECTING

attributed in

quarters to the belief that
some members had decided to

19 by
banking group composed of
Irving J. Rice & Co., Amos Treat

the

was

some

cu¬

cashing savings bonds, the
scarcity, or ample supply of con¬

This absence

convertible

3 been under consideration for some during the 10 months' interim mon stock of McGrath-St.
since major hostilities ceased. The
3 time.
It is of course no simple
Company was made on June

BIDS WANTED

quent reported lack of offerings
of the new bonds by-dealers.

reserves

the

right

all bids.
information

may be
the City

obtained
Auditor

relative
on

applica¬
the

City

Antonio, City Hall, San Antonio

Texas.
PASSED

AND

APPROVED

Revenue Bonds Included in
Federal Bankruptcy Act
After having been approved by
the House on June 17, a bill was

ATTEST: "

this

23rd

day of May A. D, 1946.
GUS

MAUERMANN.
MAYOR.

FRANK

{

1
W.

BRADY,

City Clerk.

B
•„

THE COMMERCIAL

3382

&
FINANCIAL CHRONICLE

sheets tell different stories to

sider them

people. The meth¬
ods of charging off various
items; percentage of depre¬
ciation; methods of setting up

Tomorroiv's
Markets
Walter

different

Whyte

Says—

All

reserves.

in cash markets.
tant seller of

the anxious

differ

row.::,,-;

is con¬

;;

these

where each company

cerned.

margined markets I cbn
just as inevitable

: Zi'0

Inflation is the

big subject

today. Everything is going
and so is the stock market;
Anybody who doesn't buy
them today doesn't have sense
enough to come in out of the
rain. You want proof? Take
a
look
at
your
grocer's*
butcher's, and baker's bills.
Yes, everything is up. So it

chances

the

cash to

the

are

won't be there any longer.
*

and

periods of inflation a

company should not be bur¬
dened with large cash re¬

It needs

serves.

materials,

not

warn

man

goods—raw
cash. They

must however have sufficient

cash income to take care of

the ride is

who

The

over.

grab a profit
keep out will be further
can

late and insists

the bitter end. If

staying till

good profit
can be clinched without wast¬
ing any time considering
what
bigger profits could
have been had by holding on,
the trader is on the way to
a

;

best

ihe

accounting
however,
cannot

(Continued
under

time

necessarily at any
with those of the

coincide

such

on* page

with its good and

3381)

circumstances,,

opment for the Administration to

continue to moye in the direction
of a greater and greater propor¬
of. the Federal debt to be

stock earned

five dollars last year

see

you

and is floated

issues being
old issues split up.

new

selling at $50 (a conservative Meanwhile the old line hold¬

|appraisal, incidentally) is
/assurance
•

will

earn

no
five

ers

slowly but surely dispose
their holdings to the new

dollars the next year. In fact,
buyers. Take a look at some
the current price instead of1 of the small news items re¬

making the stock cheap, may cently appearing announcing
actually make it high. Balance that such and such important
holders

Such shares.

LAMBORN & CO.
99 WALL STREET

NEW YORK 5, N. Y.

SUGAR

such and

have sold

o m e

holders

Dome
15

Oil

to subscribe expired
The proceeds from

the

certificates

exploring

Effect

The

Bank Earnings

declining rate of interest

that portion of the total debt
carried in the bank portfolios of

will

nation

this

directly

affect

earnings of banks. This is squarely
the issue our industry faces.
In
due course the Congress will have
the

matter
of

form

tion.

before

and

recommended

the

Bay

and

thing is lovely and the sky is
the limit. So when something

incur in

tors

Commodity

holding leases in

Chicago

New

other

N- Y. Cotton
NEW

the 24 tracts owned by the com¬

CHICAGO
,

;

Securities

ence

such

policy of cheap

money
on

commercial banking, on the oper¬

ations

insurance

companies,

and all other institutions and cit¬

izens who

heavily invest in short-

term issues of the Federal Treas¬
,

ury.

The fact that the insured banks
of this country own in the neigh¬
borhood of $100,000,000,000 wortl
of the debt (say 40%) places you1
industry directly in the spotligh'

Pacific Coast Exchanges,
t

Schwabacher & Co.

•

Member*

New York Stock ExchangeNew York Curb Exchange
(Associate)

Chicago Board of Trade

Exchange Bldg.

PITTSBURGH

additi<^.there

were thf
$49,000,000,000 rof savings bonds

payable for th£'!iriost part

the

demand of

and ask,

"Whaf^ypuld

a falling
bond market mean in the face of

the

refuridig^job?'' Again, if

average

Interest

rate

coupl^wbuld he in*

terested. in his Share of the tax
burden

incident

crease.

The

jXo such an in¬

public is now

ac*

housing, and

th^feifectiiptibh of
foodstuffs, costs of

othe^ubsidized

erations all sold

op¬

arid given to them

The pub¬
along* with the extra
cost incident to subsidy

emergency measures.

lic will go

budget

programs

applied^to emergency

periods but em¬
June 13 offered phatically ; protestpagainst being
taxied
Rupe

Son,

efficacious,

political party dares longer en- !
tirely to depend upon OPA to"
solve this problem which hovers*
the social and economic hor-.

Full

employment and greatly
increased production under OPA
will

not

necessarily do the job.

This because it is sound reasoning
to say

that if our people now hold
a
backlog of buying power rep-;
resen.ed by some $225,000,000,000
that with full employment and?
great
production
of
peacetime
goods the operation will finance
itself

under

and

present

•„«

wage.

levels the

people will further add
backlog of savings and

their

the

potential

will

be expanded

diminished.

base'

inflationary

So,

—

the

rather than ;
answer

to.

"potential inflationary activities"
will not be found in full employ¬
ment and production.
The "pocential"

will

Still

to exert itself

be there

ready

;

(in the absence of

additional laws,

rulesr and regula- ;
when and if bad man- 1
agement
of ' \he
present
debt.
causes the
people to lose confi¬
dence in the ownership of the

tions)

as,

they hold and proceed to :
goods ;

dollars

convert dollar holdings into
and

equities.

In the past,

occasions have arisen

at which time central

thorities

banking au¬
curtailed
bank

have

advanced

credit,

interest

rates

and in this maner precipitated deThese

flation.

steps were ;aken
under the concept of a shortrun

;

purpose.

We have to admit that in most !
every

case

the restricted effec s

of these intended shortrun defla- j

tionary forces have gone beyond,
in time, the occasioning circumstances. I refer you to the situ-

1920; and in 1929 and in

ion in

$270,000,000,000 ^debt- is to be ad¬
1937—the latter bringing to u$ the *;
vanced only
^of' $270,-;
000,000,000
equ®g$2,700,000,000 riipst precipituous drop in prices,
—every lchy-incdme^bracket citi¬ production arid employment | be*;i
lieve we have on record.
•
zen in this

by Dallas

country.

the markets of 1

methods will have to be used. No *

quainted with

syndicate

this

and

temporary

Upon each of these occasions I
have just mentioned, we did not

have; governing condi^^ lons; such ^
as prevail today.
I refer to the }
stratified debt; the vast refunding

•

operations which must be constantly faced by the Treasury; the

"owned"

time

and

demand

de- ;

posits the good citizens now hold *
to their credit in the commercial
banks; The additional reserves of ;
the people in

ihe form of curency

hand, Federal Savings Bonus
constituting demand calls on the

tomeet:pn increased inters
100,000 shares of common* stock, est burden 'impo§£d to: crirry a Treasury and still other reserves ■
$1 par value, of Houston Oil Field deadweight /debt primarily held, to - the extent now present.
If these excess (as measured by •
Material Co., Inc. at $10.50 per as; to concentrate^? holdings,: :by{
the commercial banks. This is a past aggregates) savings are to be share.
The issue was completely
political fact to wfiich you must spent for consumers' goods in A
oversold and closed out on the
period of full employment and! >
give attention.
*1.
s
~
same day.
production that is oner thing.
If •
Effectiveness of OPA
they ?are to be invested in this The net proceeds are to be used
While the House rind the Senate country in ; buildings, machinery »
to augment the working capital.
have indicated ho^r far they will and machirie tools for the prodiic- ;
tioh of goods for internal and/or :
now go in restricting the powers
Andrew Grove Joins Staff; and activities of tftat famous Fed¬ external: consumption, that is;:
eral agency—OPA.—its demise or quite
a
different matter. But !
Of Seligman, Lubetldn
liquidation has not yet been ef¬ large-scale investment - plans
fectuated.
OPA, With all of its plicable strictly to the United !
; Andrew Grove, formerly Cap¬
States
or :to
other
countries >
tain in the U. S. Army Air Corps, benefits, whatever they may be,
and its miseries, so: arrogantly im¬ through the machinery of Bretton V
has joined the sales force of Ser
posed upon thousands of, citizens, Woods have to be made far in
ligman, Lubetkin & Co., 41 Broad is a part of the political inflation- advance. ^Increases in" interest' *
riufuc? GffUfQtT^tp vnii'ri Inuct-Tiin
prevention machinery. This agency
Street, New York City. : ;*•
x

Exchange*

CETROIT

$124,000.000,000. Optional/Securities which
can be matured June 15,194*3, ag¬
gregate $1,800,000,000 additional

such

when the full storm of, consumer

demand breaks

Jan^Si952,

and before

resulting

people-to!

the markets offer.
This temporary umbrella nowknown as OPA will not suffice*

over

low-interest rates will have

And

tendencies

izon.

to openly discuss the direct influ¬
or

price-rising

mohientarily purchase more;than!

legisla¬

subsidies

underwriting

many1
Therefore,!
part of the machinery,

rr-

GENEVA. SWITZERLAND

v/-'/

pany.

Dallas, Texas, on

Exchange'

YORK 4, N. Y.

adjoining

by Dallas Rupe & Son

Exchange

Orleans Cotton Exchange
And

inevitable

were

Orders Executed

Exchange.
Inc.
Board of Trad*

contracting for the drill¬

the result is drastic.

1858

Curb

H0MC0 Corn. Offered

Exchange

Cotton

acquisition

Matagorda Bay in the vicinity of

Member*

York

the

courages relaxation in per¬
sonal spending habits. Every¬

H. Hentz & Co.

York

ing of test wells by other opera-*

Pacific Coast

New-

developing

with

citizens.

from the efforts of the

We might as well begin now

theitdjder.
Place yourself Vine the positior
24 of the
Secretar^'of the Treasury

equipment, materials and supplies

headed

New

and

the sale of
be used in

tracts of oil reserves in Matagorda

Stock

will

along

our

it is now a

June 17.

en¬

DIgby 4-2727

York

April

certificate

one

for eacjh one share of stock held
at 58 cents per certificate. Rights

This increased "wealth"

The results

New

Corp. of record

the basis of

Salt

ligations which the company may

occurs

Established

bought them, ^ur guess is as
good as mine as to who it was.

Exports—Imports—Futures

-v:

stock

d y Incident thereto, and ; to pay ob¬

•V\

writers

millions of

of government designed to assist *
the*Federal Reserve Board,"the!
Treasury, and other Government
agencies in dampening down the,

•

Because

torial

stratifiedInto Obligdtibhs c^fi^lng
a declining rate of interest so as
to reflect (insofar as the total in¬
terest
burden is
concerned)
a
smaller proportion, of the total
budget and a lighter load on the
taxpayers of the nation.

Chronicle. They are presented at
change has recently begun methods,
and in a manner which will no'
take
into
consideration those of the author only.]
advertising a slogan that facts
permit
the
Administration
tc
switches in public psychology.
are all
important. It advises
overlook the political significance
*
*
*
Sal! Dome Oil Clfs. of
of the proportion of your tota'
potential buyers to investi¬
earnings which y§u receive fror
When stocks are cheap the
gate before investing. The
the Treasury in payment of in*
advice is sound even though it rank and file doesn't have Interest in Trust Sold
terest to you on the Treasury is¬
Yarnall &
Go.
and
Cohu &
is unrealistic. The buyers of them.
As
the market ad¬
sues you hold.
JEiet me implore
Torrey on June 19 offered 800,securities look for profits. An vances and
they-see profits 000 certificates of interest in you to not overlook these basic
facts.
-/• ■
investigation of facts, which they grab them. As the stocks Matagorda Oil Royalty Trust, is¬
A careful analysis of the char¬
means balance sheets,
profit continue to advance they sued J>y TheBait Dome Oil Corp. acter of the
debJlfcutstanding on
[As all of the certificates have
and loss statements are all
stop taking profits and begin been sold the announcement is the last reported?date, May 31.
available. All these, however,
1946, shows seqUTities maturing
buying for th
made as a matter of record only.]
within the ye&i^ $61,000,000,000
are
based on past perform¬ to come from somewhere. So
The offering was made initially
ances.

its bad is ac¬
cepted as a Government ■ institu¬
tion by scores of our radio com-,
mentators, columnists, and edi¬

tion

ahead than the who arrives

'r stands to reason the market expansion in plants and to
success and what is
just- as
will go up,
It has to. All
to new financing.
important—peace of miffd.
such
reasoning leaves me
For in the final anlysis the
#
H?
*
cold.
If the market is to go
There are other things, lots buyer doesn't make money.
up it will have to show it by
It is the seller who gets the
internal action.
It will not of other things, that must be
be talked up no matter how looked for in the study of a profits.
More next Thursday.
*
large or how vociferous its company. Good accounting
—Walter Whyte
rooters are.
practices mean different
[The views expressed in this
ft
%
$
to
different people,
article do not
The New York Stock Ex¬

perfectly natural political devel¬

even

Management and
Bank Earnings

seller of tomor¬

No trend is certain. In the
differ
among different companies in long ruii losses will almost
==By WALTER WHYTE=
the same industry. The pres¬ certainly occur.
Buyirig in
*Bigger and better inflation ence of large amounts of cash anticipation of inflation is
If the com¬ one thing. But buying when
talk is making bulls out of is no sinecure.
everybody. More rally possi¬ pany ever gets to the point inflation is present is am
No one rings the bell
ble but cream is off the top. that its safety is threatened other.

They

FederaL Debl

Your reluc¬

today becomes

'I:

Thursday, June 20, 1946

14 Wall Street

COrtlandt

Private Wiret to Principal Office*
San

;

New York 5. N.Y.

7-4150;:j: ^Teletype NY 1-928

Francisco

Monterey

—

—-

Santa Barbara

Oakland

V-i-i';-;;VFresno

•

Sacramento
'..i;

•••;•;^

,.f

A' 'L"'S

<■

•

'"'*

■

Volume 161

Number .4500

THE COMMERCIAL & FINANCIAL CHRONICLE

3383
q-1--''": -/iqivq'-'i'

ficultyin inducing the public to

break of

war

irrdSwrope, and $78,-

invest their savings.
Historically^
low interest rates have encour-

assume

of any offering not sub¬
for
by individuals and

excess

ercising vast powers "over the in¬
vesting, buying, selling, and say
ing activities of the citizens?

less

materially

If one strictly, pursues the pos¬
sibilities within the range of mod-*

wish to resort to direct
bans;
or
printing-press

the war. Now leirn© ask
you what
the Reserve
aufficfrities can actu¬
ally do with respect to controlling
the amount arid cost of credit in

ment securities.

■

oU0,000,000

aged expansion of productive facilities and caused higher
profits
to be anticipated.
For the Government to again precipitate
de-

•

when

at,Jh$. end

the

Unit&f^State

scribed

1941

other

serves

entered

investors

for the

than

other

the

central

financing. There is not much, if
Would reserve requirements ap¬ any, difference,
commercial banks. The commer¬
cial banks had no other choice as ply equally to all banks?
If changes are made in the law
They
their functions
are
such
they would not.
v
I
permitting banks to invest all
Are the Federal Reserve banks legal
could not possibly go on strike in
reserve
requirements
in
f flationary forces will greatly affect the face of such a set of condi¬ wartime and refuse to buy Gov¬ in a position to raise the central Treasury short-term, low-income
ti16 niarket value of
long-term tions?
ernment's
securities, especially, banks' discount rate to a level issues, that, too, might afford a
"/Treasury issues as well as other
The public, not being too well after excess
reserves had been sufficiently high to precipitate a chance to further reduce the rate
ouis
canning securities and accen¬ informed on -the techniques in¬ provided through the Federal Re¬ radical
drop in the price level, of interest without materially ad¬
tuate the price risks incident to volved in all these
banking and serve going along with the ad¬ contract credit and currency, ana versely affecting the earnings of
}i the hignest grades of all invest- currency maters, have a right to ministration and
providing the re¬ curtail imports and exports and banks.
•

•••■•

•

that the Reserve authori¬

•

While during the past several
years, the
lower. incomes have
been

■

constantly

moving

upward

the political mind will hold

interest

that

bearing
securities
aire
largely held by those classed in
the
upper
and middle income
-

'r groups. It is true, however, that
V during the war, with full employment, millions of those classed in

•

$k the

lower

income

brackets

ac-

Quired some of the savings bonds
carrying the highest interest rate

p; of all tne Treasury issues placed
during the period of stratification
of the present Federal debt.

But

can

substantially argued
the
interest-bearing
| securities, insurance policies, and
deposits in building and loan as¬
sociations are still today
primarily
(held by those not classed in the
,

that most of

•

lower

income

groups and that any
increase in interest rates will in¬

crease, rather than diminish, the
y present inequality of income be¬
tween the two
groups.

cent

those

years

Within

who

re-

have

strongly advocated the

;

value to
the citizen of the social state have

made great
progress in condition-

q| ing the minds of. the

masses to
believe that dollars in the hands
the people whether received

from

the

financing
stabilize

•

State

through deficit
or
actually
earned,
employment and main-

will

the

come

informed

Congress

and
inade¬

what

new

steps, if any, should be taken to
protect the Federal Reserve Act

will

extremely diffi¬
cult, politically speaking, to again
precipitate any kind of a short-

t run
•;

the

prove

deflationary movement

and at
time avoid the initiation

same

great public-works programs
leading to further deficit financing on the part of the Federal

;
q

Government

covered

low-iri-

terest issues.

will
*

1
'

sufficiently

politically
sagacious to recognize how important

it will be to have citizens
with great savings ready and will-

ing

The Administration

purcnase

low-interest

Treasury

;
■

issues; or, in the abwilling public to buy
the paper for the Treasury to be
able to place it with the banks.
We

sence

for

are

the

forced to

central

recognize that

banks

greatly
whatever way

restrict credit (in
possible) and bring forth

ad-

vance

/
J

■

interest rates

that with

the banks holding in the neighborhood

of *

$100,000,000,000
of
Treasury issues,, bank earnings
womd' be appreciably advanced
and

the

this would

public

be argued

before

I have pointed out, Vfe
today have conditions very dis¬
similar to those which governed

You

rendered

without

valiant

service

banking

gener¬

carried with it the meaning that
the control
was
to
be
accom¬

not

were

ned

aid,

always exactly

similar
ment
-t

the

The

Reserve to function

eral

manage¬

once

culate those checks

i.d.

We shall have to give some
attention to this fact.

dealing with
against

Monetary

bank

Changes

sidual

referring to the increased
supply of money it is well for us
bear in mind what

the

January Monthly

read in

Review of

the Federal Reserve Bank of New
York which said "since early in
1942 the great expansion in bank

credit, the accompanying growth
the money supply in the form

bank

and
a

deposits

the

have

hiefly by
eral

ifted the
<

currency,
interest

made
possible
expansion of Fed¬

credit

total

low

been
an

Reserve

ments

and

continued

loans

the

banks from

which
and

Federal

less

has

invest¬
Reserve

than $2,500,000,-

000

to nearly $25,000,000,000".
The: udihinistyation determined
tve
cheap
money
policy.
The
Federal Reserve, in war time, was
duty bound to go along. Some
may

claim that the Treasury did

not make money

tiful

that

hot do such

have
the

to
or

borrow

our

from

sell securities

and

necessary

re¬

reserves

We acted

Government.

the administration.

obtain

a reserve

agajnst our -de¬
posits, however created. But our
bank and your banks faithfully
supported the
program
of the

monetary system and I trust we
not have to wait too long
for the recommendations from the
and

may

quired

shall

Board

But
individual,

money.

deposit. Possibly

your

the Reserve bank

now

you as an

bank must maintain

our

Time for Drastic

specifically for bank portfolios if

underwriters

the

re¬

Fed¬

eral deficits.

look

the

Reserve

Upon these authorities the law
'imposed some rather definite re¬

sponsibilities.q Commercial

banks

and the

public during the period
f 1913 to 1940 watched to see what
the Reserve authorities would do.
f

But during 1945 the already unprecedented money supply in the
form of currency and bank deposits increased substantially and
chiefly through indirect partici¬
pation by commercial banks in
Treasury financing. Increase in
bank loans
to
business was a.
minor factor. Total deposits—adj us te d to exclude interbank dev posits and
Afloat" between banks
—plus currency, increased about
a
$24,000,C00,000 during the year to
approximately $ 175,000,000,000,
compared to $61,000,000,000 at the
"

end

of June 1939 before

the out-

with

certain

tax-exempt

If the bonds were to¬
tally exempt from taxation as tc
both

consideration of

ta the

Government, or say a inajor part of them, be frozen iri the
banks at
est

can

the gross or net amount o:
indivdiual institution's earn¬

the

ings;

them,

some

Following the Civil War the
country moved in under the in¬
fluence of rigid bond-secured cur¬

cheap and plen¬
Treasury could rency,
About 33 years ago we
thing—-thot it had launched ourselves on the sea of

some

Board.

views

"Shall

the

commercial

to feel
banks are
me

we now

supported

it without any
protest. It appears to
is. on sound ground
when he claims that (1) the adparticular
me

that

one

could prove very

Bank

some

of which

helpful.

Service

,' '»

Charges

And it may that we face many
changes in our service-charges'
policy, Should an administration
that is in power find that public
policy calls for retrenchment in
the making of loans by commer¬
cial banks

and

the

time

same

determines that the total interest
rate on the Federal debt must be
reduced with the banks holding
the greater percentage of the out?
standing Treasury issues, we may.
find that banks will be forced to
greatly
increase
their
service
charges in order to maintain the
amount of bank earnings required
to protect these necessary
insti-f
tutions. So long as the banks do
not know just what the Federal
policy is to be, they are in no poi
sition to materially increase or
de^
crease service charges.
As in the
field of transportation and com¬
munication, the business of bank¬
ing is sufficiently related to the
public interest to prevent any ad¬
ministration, under monetary; and

from the -income

from other

in¬

vestments and income of the bank

conditions

the

coming

such

now

immediate

and

question. If banks could be in¬
duced, by mutually beneficial ar¬
rangements, to hold a very greal
percentage of the total floating
of

Federal

the

Government

and at the same time lower the

interest

burden

and

reduce

the

possibility of quick changes in the
relation of

near

money

debt and

deposits

under the
control of the individual citizens
currency

might greatly benefit thereby
for great flexibility Jr
management of Federal fU

The need
the

may force us into some In¬
teresting and new policies and
procedure.
f
f

nances

Finally, we have
sume

reason

to a

that in 1945-46 we have, for

the present era, witnessed the top
in total commercial bank eartH

ings. q.Many will be surprised if
calendar year -1946 gives;, as
great net returns as related to; ten
tal capital as the tanks enjoyed in
calendar* year 1945. But assume
this current year ranks righer; in
earriirigs after trixes^ than did last
year, we certainly have no reason
to assume that • 1947 will equal
the

either 1945

1946,

Therefore, under
varied

many5

which

problems

have and .which

Should Banks Make

and

now

directly

are so

indirectly related to tb e manage--

Capital Loans?

ment of the present debt and the

are also possibilities in
proposal to permit banks to
make
capital
loans
(provided

Government's
fiscal pol¬
icy, I must conclude that the sub¬
ject we have here .so briefly con¬
sidered is

segregated) out of undistributed

the Government must give prompt

There

the

earnings on a less restricted or
supervised basis than those in¬
vestments made, the major pur¬
pose of which is to protect de¬
positors' funds. Somewhere dowr
the line* and let us hope not toe
far distant, banks should be able
to increase their capital accounts
through sale of stock to the pub¬

box the

compass?"

banks,

and freeze the debt of the Second
qq
World War into the bonks and
a

bond-secured
Some

cur¬

economists

would have this very thing occur.
Shall the legal reserves required
to be

kept by the member banks

with

the

Federal

Reserve

Legislation

hibit

entirely responsible for this cheap thus return to
money policy as some claim they rency
again?
have

suggestions that

—-

fiscal

this

;• v.

It is not possible for
that

about

innumerable

are

might be made

govern, from overlooking the im¬
portance service charges may play

net income applicable to Gov¬
ernment issues only as separatee

the demands of our industry,
ag¬ lic. Certainly a drastic reduction
in bank earaings due to Treasury
riculture,' arid people generally.
cheap money, .and low ..interest
policy will not be conductive* tc
"Shall We Box the Compass?"
program
which do not exactly
inducing the public to acquire
conform
to - the
views
of
the
The question has been
raised, new stock issues offered by the

has

couraging banks to carry a large
portion of the Federal debt —
long-term or short-term — there

one

ta which banks and

•

informed to know that the Treas¬
ury

applied to bank
related to en-r

funds used for such purposes are

just mention

y.'.■*.■;:yt:A.

percentage of the gross

or a

earnings and all

nominal rate of inter¬

do is

se¬

age of

fixed

by the Treasury. Time
will not permit a discussion of the
many proposals and the most that

issuing such

curities. The income exempt frorr
taxes might be a stated percent¬

debt

Now," with the banks having
along and with the Dec. 31,
1945, figures on all insured com¬
mercial banks showing "all other
loans (that real-estate loans) in¬
cluding
overdrafts"
aggregating
only $21,000,000,000 and "United
States
obligations, ; direct
and
guaranteed,"
of
$89,000,000,000,
we have many who
propose that
the war loans made by the banks
gone

the
a

joined

privileges.

principal and income anc
applicable to all banks irrespec
tive of the total earnings of the
to my bank and arrange a loan, holding bank that would be on'
proposition.
On the other hand
we credit your account with the
amount of money borrowed.
You, if bonds are to be only partially
of course, can proceed to draw tax-exempt as to income manj
checks against that credit and cir¬ complications can well enter the

the Fed¬
as

war

The public does not understand
what has happened. If you come

present debt makes

quite impossible for

inflation:
needs had

money

ified taxation

our peo¬

proposed long-term, low-coupon
bond
that would be restricted

(once the policy was es¬
tablished) in any event, and this
you should make known to the
plan¬ public.

very

conditions.

con¬

to be met

dominating in¬
fluence
in
money
and
capital
markets. Now, we have very dis¬
a

direct

sequent

The Government's

desired but what the banks

had

securities with

coming at the cost of to be done
by the Federal Reserve the Federal Reserve Act.
The
taxpayers (ori the Govern¬ alone.
Well, iri My opinion, such Federal Reserve Act Vvras pro¬
ment).
reasoning can well afford to be moted and intended to give us
Since the inception of the Fed¬
questioned at this particular mo¬ some relief through
providing an
eral Reserve Act we have been ment because we are
sufficiently elastic currency that would meet
taught

taught to

cost to the Govern¬

any

Government

plished through alterations in the
ediscount rate and through open.narket operations of the Federal
Reserve banks.
Results obtained

authorities for policies pertaining
to the quantity and cost of credit.

of these lessons

ment—the costs being absorbed by

the

ple by thq recent strikes, with the
public generally becoming a lit¬
ally from any great catastrophe your operating revenues. Had
tle more discriminating in its pur¬
you
by reason of bad administration not
gone along with the general chasings just how far do we dare
or political
expediency.
program it would have necessi¬ go in repeating the scarce-money
You recall when the term "con¬
tated the direct absorption by the experiments of years past?
trol of credit conditions" largely
Federal
Reserve
banks
of
the
Possibilities can be found in the
and* commercial

ripe, for some drastic
changes in the framework of our

Well,

•-

Upon

pomt out deficiencies or
quacies in present laws. And, too,
tne administration in power owes
to the public the responsibility of
keeping the Congress and the

public

every

It is my frank opinion that the
Movement Difficult

employment?

every occasion
arid at
opportunity you can make,
you should, as a banking institu¬ when the central bank could so
tion point out that during the war effectively operate. With more oi
you
voluntarily did practically less fear evident; with: famine
everything in your power to per¬ cries spreading over the world:
suade your
prices
reaching
a
point
depositors to draw with
down their deposits and purchase where the desire to spend is be¬
the issues offered by the Treasury. ing dampened down, with some

time is

Short Term Deflationary

control

cial banks.

general welfare and that if con¬
ditions vjustify,
the authorities

tain the flow of social income.

■

of the commer¬

use

ties will act in the interest of the

banks

ketable

than
or

q'"

from

Federal

absolutely
acquiring
securities

directly from

An underwriting group headed

by Lee Higginson Corp.

mon

June

420,000 shares of

19 offered

pro¬

the Treasury

by someone, introduced. Ir
the event the Budget is not bal¬

broiight sufficient

Higginson Offers

Marathon Com. Stock

corm-

stock

(par $6.25

Marathon

Corp.

per

share1)

$37

pe£

The net proceeds wQl be amlied,

mar¬

othei

the Federal Reserve banks may

Lee

share.

be,

anced,

and serious and constructive con¬

sideration.

near

the

amount

$10,143,000

(which amount does not include
accrued

tion,

interest), to the redempk

amount,

103 V2%

principal

$9,800,000

presently

ministration did not want ta ask materially increased? Will
greatly to balance to just accommodate outstanding 33A% sinking fund
taxes that would more sub¬ increased legal reserve
require¬ the investment, in new issues, o'
debentures, due June 1, 1959, held
stantially finance the war ex¬ ments suffice - with respect to Government trust
funds, we might
by the. Equitable Life Assurance
penditures; (2) that the adminis¬ meeting the public's demand for find that it will be
utterly im¬
tration had for many years advo¬ some kind of inflation
prevention? practicable, if not economically Society of the United States, Thl
cated deficits and. low interest What seeds are now
being sown impossible, to impose such restric¬ remainder of the
proceeds, to|
rates; (3) that the Administration by ; the administration in "condi¬ tions on bank portfolios. After
gether with, treasury fundsr will
did want a stratified debt;
(4) tioning" the minds of the people all, if the Congress makes the ap¬
be used to pay for improvements
that the Administration did ex- to believe that inflation can be
for

propriations

pect

the

commercial

banks

stand by and be ready to take the

prevented by legislation or
agencies of the Government

by
ex¬

someone must pur¬
chase the Treasury issue put forth
to finance the appropriations uri-

and

the

purchase

equipment.

additional

THE COMMERCIAL & FINANCIAL CHRONICLE

3384

Attempting Atomic Control

Is Excellent

The Authority should have as ; one' bf its .earliest purposes to
obtain and maintain complete and accurate information on world

(Continude from page 3342)
and to the veto power. Iu a brief chat

Raw .Materials
;.

pending American and Russian proposals relate to punitive technique

(Continued from page 3346)
I cations, tne end is still nowhere in
?■

Thursday, June 20, 1946

with some of the press hftet

supplies of uranium and thorium and to bring them under its do¬
The precise pattern of control for various types of deposits M:
of such materials will have to depend, upon the geological, mining, m

minion.
.

;
-; | M
sight.
today's session Mr. Gromiyko rdyealed that he wants any necessary
The Authority should conduct continuous surveys so that it will
:ll
So, something is happening all
punitive measures to be invoked on a national basis by each coun¬ have the most complete knowledge of the world geology of uranium
right. And the stores report that
try's* parliament Such> sovereignty-preservation he- also wants ox- and thorium. Only after, all current information ou world: sources of
many of these sales are* in the
uranium and thorium is known universally can equitable "plans be
items you've been waiving for—^ tended to 4he: veto-power;'pleariy riating that |the veto^right must be
ms
made £or their production, refining-and-distribttttmr; f • - * ^
refrigerators, radios, suits, tires ; Jkept*jtet$ctuftder sill
a crucial con-,K. .V<£?
.

land

so on.

troversy, because absence

is at -work as
Today 55 million

And: the country
never

before.

people

are

employed
than

even

that's

—

work

were

of atom
'

figures of the Federal Reserve
Board,; which
measures
actual
volume of industrial goods pro¬
duced each month, production to¬

above

64%

day

level for the years
And

yet

the average
1936-1939.

sometimes,

you

know, when you try to buy a pair
of 6.00-16 tires for your car—or

plain white shirts—it's like
hunting for a needle in a haystack
two

oifunilateral; veto action is ft rine>qW noi(
explained by Mr. Baruch, and strongly
Brazil, Mexico, and China.

control—as clearly;

endorsed here today by Canada,:
I
'
"
«.
*

♦ *

The Status of the Atomic Energy

during the war—when our

war
plants were going full blast.
According to latest available

refining, and economic facts involved in different situations.

The Atomic

Commission

Energy Commission, which takes up its work where

the San Francisco Charter

of the United

ends, constitutes one of the principal or¬

Primary Production Plants

•

The

Authority should exerdise ^complete managerial control of
theJ production uf fissionable materials: This means" that iX "should •
Control end; operate all plants producing fissionable materials in
dangerous quantities and must own and control the product of these
plants.

'r. p;|II

I':I>v||;''

Atomic Explosives

,• ■.

'■|/
>

fit

^1'

organization. Primarily it is charged
The Authority should be given sole and exclusive right to conduct I
responsibility of serving the Security Council in its job of research
in the field of atomic explosives.
Research activities in the
maintaining peace.
The Commission will submit its reports and
field of atomic explosives are essential in order that the Authority
recommendations to the Council, to which it will be directly ac¬
may keep in the forefront of knowledge in the field of atomic energy |
countable.
■ J ;
|l' %; .|
and fulfill the objective of preventing illicit manufacture of bombs.
The Atomic Commission's mandate directly rests first on the
Only by maintaining its position as the best informed agency will the
Conference of Messrs. Molotov, Bevin, arid Byrnes held in Moscow
Authority be able to determine the line between intrinsically danger- I
Dec. 27 of last year, when its establishment was proposed. This sug¬
ous and non-dangerous activities.
|
gestion was activated by a preceding conference in Washington Nov.
15, 1945, participated in by Messrs. Truman, Attlee, and Mac- Strategic Distribution of Activities and Materials
I
Kenzie King.
■' V...t.
•
,v,v •
The activities entrusted exclusively to the Authority because they 1
gans

Nations

with the

...

to find them.

the explanation?
If goods are being produced in
such quantities why is it so hard
Why? What's

to find them in the stores?

Goods

Cites Heavy Demand for

Well,

clearly

pretty
that

answer

the first

that everyone

Tlie present Commission was actually established by resolution oi are intrinsically dangerous to security should be distributed through-;
the UN's General Assembly at its London meeting on Jan. 24 last, out the world. Similarly, stockpiles of raw materials and fissionable $
with its members to include all the nations on the Security Council materials should not be centralized.
I?
plus Canada. Its current action will of course take close cognizance
of the Acheson-Lilienthal report recently compiled under the aegis Non-Dangerous Activities
A function of the Authority should be promotion of the peace- |
of the State Department. In fact, the Baruch statement in reality
Is
merely a public-relations job of dressing up the Acheson- time benefits of atomic energy.
|:
1
(
^
,..

Lilienthal Document.

| '-.:

,■

trying to satisfy-, the
.1 Mr. Baruch's Proposals for an International Authority^ i, *
piled-up needs of four long • years
In line therewith the American Government, surely' tnarking a
of
war—when
many. civilian
goods just weren't produced*' For precedent for any government voluntarily givingup its secret knowl¬
instance* in April our plants and edge of- a deadly -weapon, through* Mr,* Baruch now proposes the
factories shipped 174,000 vacuum creation of an International Atomic Development Authority, to Which
cleaners.
That's actually 18,000 are to be entrusted all phases of the development and use of atomic
more than were produced in an
energy, starting with the raw material and including: today

■

the war.
made five times

month

average
But

even

before

Managerial control or ownership of all atomic energy activities
potentially dangerous to world security.
-

Definition of Dangerous and Non-Dangerous Activities

Power to control,

gerous and non-dangerous

Al;

tomers..

;|'|

•

And 'Jhe

people

that

money

'4.

Some incomes, it

is true, aren't as
high now as they were during the
war
Bu- they still are high. And
"America is also dipping into its
savings. According to the best
know

pie have had the biggest total in¬
comes in our history with which
to buy goods that theyneeded,

fostering the beneficial uses of atomic

Research

and

intended

modities

that

the

specific

have

been

development

Social Council—of the fact that to be effective

good

deal

•

misinformation about shirts. Some

to let the mills make cloth. That's

labor rise.

And several such

ad¬

priced when

you

are so

do find them. In

opinion, shirt prices
ready too high.

high

are

al¬

are

Illegal possession

Bernard

Baruch

control body..

After

are

the

haven't

needed,
make

had
so

mills

the

naturally they couldn't
Up to No¬

much cloth..

vember of last year

106,000

workers.

they had lost
Some

-- •

during the war. Others
left to go into the high-paid war
industries.

A-

are

made by the United States:

workable

respect

is with

the provisions for

The

super¬

agreement, provisions for continuing effective

For
in-

spection must be spelled out and irrevocably agreed upon.
;v-'' ■ ■"
Illl

Personnel

proven

Existing bombs1 shall be disposed of pursuant to the terms of
the treaty, and

vision and inspection, that; the Baruch Plan is at its weakest.

•

-4^

ll:''^'l' I

than words.

|;'|l||||:|

personnel of the Authority should be recruited on a basis of
competence but also so far as possible on an international

.j.

The Authority shall be in possession of full information as
the know-how for the production of atomic energy.

Proposed Function of the Authority

/.
the Baruch Plan is its submission
-

Another splendid feature Of
of specific measures, in lieu of
generalizations, to carry out the general
aims.
Following are the detailed functions recommended for the
Atomic Development Authority to exercise:
*>

•

«•

v'- ^ i

V V•

[ " ' 3

'llV

v.; ! v|l *'|;| /"111:1/
primary step in the creation of the system of control is the
setting forth, in comprehensive terms of the functions, responsibilities,
powers and limitations -of the Authority.
Once a Charter for the |
Authority has been adopted, the Authority and the System of control |
for which it will be responsible will require time to become fully
organized and effective. The plan of control will, therefore, have to
come into effect in successive stages.
These should be specifically

otherwise set forth in the
Charter for transitions from one stage to another, as contemplated in
the resolution of the United Nations Assembly which created this

fixed in the Charter or means should be

Commission.:^
v-'

I.*

"./$.■ :-d

'' V.

,'1

•

*«

•

jJ '

J-' •'

r^,

»,i-

-j

General Functions
; - The Authority should
field of atomic energy,

Progress by Stages
A

;

Disclosures

set

up a

thorough plan for control of the

through various forms of ownership, dominion,
II The second reason is that up licenses, operation,
inspection, research and management by com¬
until very recently the mills have petent personnel.
After this is provided for, there should be as
tended to concentrate on higher little interference as
possible with the economic plans and the present
priced, fancier weaves.
You see, private, corporate and State relationships in the several countries
(Continued on page 3385) >
.

Seemingly

Manufacture of atomic bombs shall stop,

were

draf ed

11- I

One

they

' l*|"

basis.

themselves

workers

■"

Adequate ingress and egress for all qualified representatives
the Authority must be assured. Many of the inspection activities

must

us.

Freedom of Access

atomic bomb;

general proposals

discharged service
also looking for shirts,

.that

system of control has heeri set up, and after punishments
have been determined for the above-listed violations," the following

eight million
men

assuredly be generally admitted
that adequate guarantees of safety are the least
to which the United States is entitled before relinquishing its all- ;;
It

two main reasons for

along with all the rest of

or use

the shirt shortage, that is in addi¬
tion to the fact that more than

'*•/.

■

By assigning intrinsically dangerous activities exclusively to the

■>

Shirt Shortage

There

Inspection

Illegal possession, or separation, of atomic
material suitable for use in an atomic bomb;

justments have been made. In
fact, they're largely responsible powerful secret. It is entitled to
for the fact that shirts

the Authority.

people have tried to tell you that
price ceilings aren't high enough

whenever the costs for cotton

subject to the most' A
rigorous and competent inspection by the Authority, but its actual
operation shall be under the management, supervision and control of

of
of
the Authority should grow out of, and be incidental to, its other
3. Seizure of any plant or other property be¬
functions. Important measures of inspection will be associated with
longing to or licensed by the Authority;
the tight control of raw materials, for this is a keystone of the plan.
4. Willful interference with the activities of The continuing, activities of
prospecting, survey and research in re¬
the Authority;
lation to rawjmaterials will be designed not only to serve the affirma¬
5.' Creation or operation of dangerous projects tive development functions of the Authority, but also to assure that
in a manner contrary to, or in the absence no surreptitious operations are conducted in the raw materials field
of, a license granted by the international by nations or their citizens.
2.

simply not true, because by law,
OPA must adjust the mill ceilings

Any plant dealing with uranium or thorium after it once reaches
the potential of dangerous use must be not only

^tidftMUKlhe

.•;y/S-i/.y.y :

What about men's business
shirts?
';
''
•'
fg>
been

Operations of Dangerous Activities

II: international body must have teeth for the im¬

find.

There's

Authority, the difficulties of inspection are reduced. If the Authority
is the only agency which may lawfully conduct dangerous activities,
plementation of its lofty aims.; Hence he pro¬ then visible operation-by others than the Authority will constitute
poses that penalties and punishments be specifi¬ aft unambiguous; danger sigftaL Tn$ft£Ctiqn
cally provided for violations perpetrated on the
licensing
• *•.{• Ifiw I
xl Hi w
following forms:
' :
!
l'||'4*

com¬

hard

Possibly the very wisest feature of the Baruch-American pro¬

they're spending a good part of
that: money.
But I promised you
I'd talk
of

j It
fi i. J

energy.

posals is his recognition—unlike the proponents of the Economic and

the stores are dramatic-proof thai

some

reasonable dividing line can be drawn between dan¬
activities, it is not hard and fast. Provision

should, therefore, be made to assure constant reexamination of the
questions, and to permit revision of the dividing line as changing
conditions and new discoveries may require. J
•

responsibilities of an affirmative
put the Authority in the forefront of
atomic knowledge and thus to enable it to comprehend, and
therefore to detect misuse of atomic energy. To be effective,
the Authority must itself be the world's leader in the field of
atomic khowledge and development and thus supplement its
legal authority with the great power inherent in possession of
leadership in knowledge.
I

and the ;all-timeJjrebord 'isales in

about

Although

of, in the past

three months of this year our peoi

The duty of

inspect, and license all other atomic activities.

character

have to spend is putting a lot of
steam behind this terrific demand.

estimates

actors, the production of radioactive tracers by means of non-danger¬
ous reactors, the use of such tracers, and to some extent the pro¬
duction of power should be open to nations and their citizens under
reasonable licensing arrangements from the Authority.
Denatured
materials, whose use we know also requires suitable safeguards,
should be furnished for such purposes by the Authority under lease
or other arrangement. Denaturing seems to have been over-estimated
by the public as a safety measure.

that record number, I

still doubt
very much whether there would
be enough to satisfy all the cus¬

| Atomic research (except in explosives), the use of research re-

In the deliberations of

the United Nations Commission on Atomic

Energy, the United States is prepared to make available the infor-. |r
mation essential to a reasonable understanding' of the proposals I
which it advocates. Further disclosures must be dependent in the I
upon the effective ratification of the treaty.
When *
actually created, the United States will join the other >
making available the further information essential to tftat

interests of all,

the Authority is
nations in

Volume 163

Number 4500

the

Commercial & financial Chronicle;

organization for the performance of its functions. As the successive
stages of international control are reached, the United States will be
prepared to yields to ithe extent required by each stage, national con¬

•

f. There will be questions about the extent of control to be allowed
bodies, when the Authority is established. Purely na¬

to national
tional

authorities

should

the

for

control

extent

and

development

atomic

energy

for the effective operation of the.
Authority be subordinate to it. This is neither an endorsement nor
a disapproval of the creation of national authorities.
The Com¬
mission should evolve a clear demarcation of the scope of duties and
necessary
,

responsibilities of such national authorities.

The U. S.

Delegation

A novel "sit-down strike" of scientists is being proposed under
by M. Frederic Joliot-Curie, member of the French
delegation. To point up the; contrast between scientific progress and
the backwardness in the international political field, M. Gurie pro¬

Representative—Mr.

benef it at the expense of those who do.-

This, would hand veto-power
silver platter to a non-conforming Power.; Of, course, this whole
idea boldly assumes the possibility of international cooperation in the
scientific sphere where it is unattainable by political representatives.
It riskily assumes the possibility of taking stands on controversial
questions that contradict national political interests.
7
on a

Atomic

>70

Associates—Mr.

Just

Hancock, Mr. Ferdinand Eberstadt, Mr. Fred Searls, Jr., Mr.
Swope, Dr. Richard
C. "Tolman,
Mr. Thomas F.
Farrell, and Mr. John Parks
Davis, Executive Officer.
Herbert B.

addition to these "non¬

Hancock

fissionable

These

terials.
M.

Vannevar

Compton,

g£v'-r-'H.

beginning to feel the effects of thtro. j
strike, which cut down ^.v

soft coal

steel production 50% in May an^,7
held up the production of

Arthur ' Ferdinand

Dr.

Major

situation

i;. ;

autos

pretty

•

oj;

many

other products made fron7'

steel.

This is the

in which

area

the sleel shortage and labor-man¬

disputes

agement

have

hardest. It's also the

area

hit

But

in which

demand is greatest.

•

strikes and 7 •
shortages, some remarkable prog- •'
ress

spite

has been

IhTApril

maae.

Eberstadt

General

kind

the Government

war

fabric

that

used

Implications

Honest, direct, and altogether efficient is it for Mr. Baruch to

have taken the bull by the horns in bringing in the Veto factor. For
it goes right to the heart of any semblance of control of the atomic
more clearly and all-inclusively than it does to the
ideological aims of the Charter. Irrespective of what devices
France, and-US) concoct, for
the purpose of escaping penalties for agreement-violation in other
fields of UN, Mr. Baruch made it clear that the United States will
insist irrevocably in this field that "there must be no veto to protect
those who violate their solemn agreements not to develop or use
tomic energy for destructive purposes."
-

weapon—even
more

the Big Five Powers (USSR, UK, China,

increased by

And

on that day only a few peo¬
ple would be looking. Today mil¬

10%

in March

Also, in April, we shipped 177,OOQ^ >«; ^
washing machines and an esti^ 7 'y>
lions of Americans are all look¬
When these controls were dropped
mated 382,000 electric irons.
ing at once. 7,,
labor-management dispu.es in the
right after V-J Day, the "mills
Take the average veteran, for electrical
appliance field settled,
went
back
to
weaving fabrics
example.
Nearly eight million there's every reason to think
thai)V.
which brought more profit.- And veterans have come out of service
May production wiU top ever^Tv
the production of cloth for men's in less; than a year. Many of these new postwar records.
those fellows aren't just looking
shirts took another drop.t
shirts and other essential

The Veto

manycfr:

auto par.s.

thousand mechanical refrigera.ors
'
adjustment to keep production were
shipped—one third more re~7)
high was granted. So don't let
frigerators than were shipped the/
controlled the output of the mills to anyone tell you that price ceilings month before.
are holding up men's suits.'
1
ensure that at least some of our
;
Nearly a million radios werqi>Cf
In the old days you went look¬
produced in April. Nylon produc* jiT)
mill
machinery turned out the
ing for a suit maybe once a year. tion

during the

Groves, and President James B. Conant of Harvard

May's car production can come upv
to that. >The industry is just ,no\.„ <_>• 7

(Continued from page 3384)

ma- 5
Dr.

included:

Bush,

has^l

hit postwar highs7'
sewing machine production
Twenty-three thousand were pro-:
duced One-hundred foiiy-timee il7

Piodiictidii Record Is Kccelleht

the services of leading author¬
ities on the science and en- t

gineering

Au.Ot](Jj

course,

for

throughout his labors enlisted

John

un¬
Baruch

Mr.

more items.

well describes the fix we're in

Enterprise

bound

are

assistants, it is
that

few

been hard hit—first by the steel 7

technical"
derstood

the Baruch proposals

with international
peace and the future of humanity, so the McMahon Atomic Energy
Control bill, which was recently passed by the
Senate, is of vital
concern to private enterprise.
In addition to the danger of too wide
governmental control over progressive businesses in the field, there
is the important element of the patent situation.
For, contrary to
the basic and traditional safeguards of our enterprise system, the
bill's patent provisions eliminate the patent rights in many important
fields of atomic energy development.

John

production, of

The

The McMahon Bill and Private

Ber¬

Baruch.

glance at
mobile

strike, then by the recent soft coaler?
poses^ that, if there be no agreement on the political level, the strike.
But though we're ; wayum
scientists.themselves should refuse to continue their work, and should
behind, we got a start up the
on a worldwide scale desist from further work in the unclear field. But
der in April with 150,000 cars. Thej^-*
unless such a'boyeott were effected and continued unanimously, it
$64 question, though, is whether
would be abortive; because any single
country not cooperating would

Commission is

nard

Now, in the time that's left, let's

•

The makeup of the United States Representation on the
as follows:

Autos and Other Items

The Scientist Sit-Down Strike
certain conditions

trol of activities in this field to the Authority.

International Control

3385-:

clothing.

Now

being

both

these

The

corrected.

for

situations

are

mills

are

one

Record Is Excellent

suit. If you were in serv¬

ice during the war, you

probably
Your old

^7;

We're moving ahead — but tlr(>7
Record is still far from what
we'e^

weight.
paying higher wages and getting clothes just don't fit. If ypu can like it to be. 7 It's good here
anc;^
their workers back. Already, in afford it, you're going to buy a bad there. But in many
placesrrry.u
whole new wardrobe—maybe two and
It is well to bring, the veto question to a head, for if a realistic the last few
in
the
face
of
crippling
months, they have1 or
three suits. Millions of men strikes, and despite shortages od,'; V
Atomic Charter cannot be devised, then it may as well, be realized
gained back almost half the work¬
now that the UN Charter is only academic and irrevocably
are, apparently, doing that today. wprkers
inef¬ ers lost during the war.
and
materials—it
•
fective. But this necessary attempt to provide realism through the
r
!
' ,i''7'
Recently I had lunch with a been excellent.
Shirt fabrics, and shirt produc¬
abolition of the veto will no doubt run headlong into Soviet ob¬
friend who owns seven depart¬
And these records are -bein^r;'
tion are definitely on the upgrade.
ment stores down South. He told achieved under
jections, and into their continued insistence on their supposed unique I told
you a while ago I thought
OPAfprice?
privilege to engage in unilaterally directed conduct, precisely as they this whole
situation would be bet¬ me, "On the average, I find that in trols. Price controls have helpea
see
fit—even when they are gratuitously getting the benefit of
each one of my stores we start the
keep our production :;cos,.s; steady^! 1
ter by July.
That prophecy, I
someone else's secret weapon.
month with a dozen suits in stock. and
predictable. They have helped
think, will still hold good.... In the
We end up the month; with a spread
first three months of this year,
supplies of materials and 17
dozen suits in stockBut in be-?
Likely Soviet Opposition i:.y>
parts by .preventing the hoarding u,
the shirt manufacturers, made al¬
tween we sell more^suits than we
Another: probable point of trouble which the new regulatory body most half
$; scarce.,materials..; i And ^ price >'7
again as many "business;
ever did before."
V '•
Will have with Russia, Is the proposed regulation for continuous in* shirts as
controls r, arehelping? to > insure? .7
they did ;'in the' same
spection within the various countries. Based on past performance, period last year—and this was be¬
good,
long-range
markets—by ; r! 7
Building Materials,
she will probably, consider this cardinal feature of the program as an fore we started to control the mill
preventing buyers' strikes thaSI
I know a lot of veterans are
"insult against her integrity." And Moscow will probably be loathe
always come when prices are too?
output of essential fabrics again.
wondering
how
we're
coming high. I think it's
to give up the privilege—even jointly—of conducting or filching These wartime controls are
now
important to re-xy.fk
along with the building materials member these
further research before she has caught up with all other nations.
back on. And, as I've said, pro¬
things, especiallysvt-i
put

some

duction of

The American Position
Our

own

Congress is of

starting

also likely to require

course

some

placa-

all the

tion—not only in relinquishing the veto, but in delegating authority
to the executive branch to take decisive punitive offensive action

shirts.

shirt fabrics is

fast.

You won't find

shirts

you

want for

some

time

against law-breaking nations.

men's

yet, because it takes time
get the fabric made up into
But

the

situation

im¬

And it will continue to
It must be remembered that great difficulties will also be justifi¬ proving.
ably encountered jwith the American people because of the relin- improve.
This better employment picture
uishment of Sovereignty that is entailed; and because the "con¬
ditions" prescribed as a precedent to our yielding of information is in the mills—and putting back the
controls to get more output of
based on other nations' (including the Soviet) keeping their word to
follow such conditions even after they shall have gained the sought- essential fabrics—will help the
for knowledge from us.
In the context of the continuing Russian cotton clothing situatioh generally
record, such worry assuredly is thoroughly warranted.
And the ex¬ too. And OPA has given, an incen¬
tension of such skepticism to other nations* behavior as well is in tive price increase to speed pro¬
,

order, when the abortive course of previous international naval dis¬
armament agreements is recalled.
^
v
'*•''r>

7. 7:

' 7

•

In any event the

gesture toward international good will in the atomic crisis.
And prior

Russian opposition will no doubt

save

mbarrassment of scuttling our own proposals.
•

A ?'i' V, H

\'$'~k

.v •

Must

#.,v

^
,.

• 'v

'•:->*

J «

,•

;

Recognize Others' Progress

Objection that the Baruch recommendations
Taway

from the

N
«

go too far

in giving

information and in "One-World-ness" overlook the strides

which other nations are certain to make without any help from us.
France
years

actually took out patents in Sweden and other countries five

ago

for a process precisely like the bomb which we later

developed Ithe / only reason for her
was

subsequently relinquishing it

her lack of the heeded $2 billion plant.

It must be remembered

1939; and that the principle of chain reactions was discovered by
French scientists.

necessary

lumber has been

for7 the yfhen

one

our

worst

production headaches.

was

Men's Suits

may

surprise

you.

given in the U. S. Forestry

that

In March the

Bureau of the Census made
vey

sur¬

of the number of suits

our

lumber

make

that's

best

use

produced.

the wartime controls

over

seeing
of

the

When
build¬

ing materials were, in my opin¬
ion, mistakenly dropped, last fall
the lumber we needed for homes
started to - go into, a lot of Irion*

manufacturers were working oil;
building—race
tracks,
They found that 463,000 suits were essential
being -made. That's more suits— pool halls, and movie houses and
21,000 more—than wo produced so on. Today, we are drastically
in an average week in 1941. Fer- limiting the amount of this non¬
haps not all of these suits were essentials construction. And the
actually
finished
in
March. controls on lumber are again in
There's been a shortage of pocket effect. The Government is also
materials
and
in
some
places, making sure that at least 50% of
rayon

linings have been -scarce,

our

scarce

But if

than 85 % of the

ans

homes.

you that the way to get; f >1 r
production is to abolish price praf >v>.r

tections

now*

Sometimes

price?'

Service figures

On the question of men's suits,
I've got some information that

the enemies of price control?J4
out in force and try to
per-r

come

suade

adjustment can break a bottled
One clear indication that we're neck, for instance, when it
helpsr. > 'rsolving this problem in, lumber ah industry pay higher wages i«vi0

lumber goes to veter¬

Incidentally, I know

get .workers.

But, as a general-1,/
don't get more produce h I:
higher prices.
All youitiiri
get is higher prices.
i » 7

rule,

you
tion from

Today,
stability
start

more than ever, we need ^ "

to keep our excellent'17 • *
full production from go- 'r'-.

ing into a tailspin. If we can jusflv;
hang oh—production will contin-v
ue

move

lieve
see

gradually,'' I be-

next Christmas youH^
flood of goods that will

amaze us all. Some shortages wiU
07
still exist—but others will vanish/ ••
and seem as remote as last year's: >t -

cigarette shortage does

now.

There's just one question in my
mihd—and it's a big one. Will

veterans will be interested to

' *

we/;

prevent the kind of paralysis
comes

when prices are too

and everyone starts to

the

economic

down?

high,?
slows

we can summon

the

courage, and have the vision and

good

sense

cisions

to make the right de¬

now

•

> >

hoard, and-'-v

machinery
:',7 777

I only hope

tha^.;

to prevent an eco¬
great bulk of that half a million
nomic breakdown. The choice is
suits was actually finished, it's hear that in the first four months
still very - close - to prewar- suit of
this
year, 1 315,000 - dwelling up to all of us—and the next few
production. Some time ago a price units have been begun.
days will decide.
our

that the French went to work on atomic energy* in a big way in late

Housing Program. You
certainly can't build houses with¬
out lumber. And for a long time

The Government is also

document with its incompleteness, and its under¬
devised to serve/ as our

are

Veterans

for March. They
show a sharp upswing in lumber
production since the first of the
year.
Production in March was
about 2 billion, 750 million board
feet. If that production. rate can
duction of essential cloth. You'll be maintained the 1946 production
see more
cotton underwear, pa¬ goal of 32 billion board feet for
the Veterans Housing Program
jamas, blouses , and slips and so
will be met.
'
7/
'
on—as a result.
.

lying' spirit of "gradualism,"- is mainly

that

THE COMMERCIAL & FINANCIAL CHRONICLE

3386

Securities
Aeronautical Securities* Inc., New
500.000

filed

Underwriter—Calvin
will

The

York (6/25)

shares of capital stock (par $1).
Bullock, New York.
Offering—
offered publicly at a maximum

offering price of $5,360,000 (determined at the offering
price computed on the basis of the net asset value on
June 4, 1946, viz., $1G.72 a share). Proceeds—For invest¬
ment.

Industries, Inc., Brooklyn, N. Y*

June 14

(letter of notification) 3,000

shares ($100 par)

Offering price $100 a share.
underwriting. For working capital.

cumulative preferred stock.
No

Registration

(subsidiary), to provide subsidiary J with additional'v- •

Inc.

working capital, and expenditures totaling $815,000 for
a
construction and improvement program for mills of
company and subsidiaries to be carried through during
1946 and 1947.

Business—Manufacture of cotton yarns,

commercial sewing thread and .worsted yarn.

CouhtirCoal Corp., Philadelphia
(6/24-28)

Arapahoe Basin, Inc., Denver, Colo.

•June 11 (letter of notification) 50,000 shares of $1 par
6% non-voting preferred stock.
Offering price, $1 a
share.
No underwriting. / For constructing an additional
ski-lift and increasing size of lodge of winter sports
resort.

Inc., Wilmington

(7/5)

Co., and Courts & Co. Offering—Stock will be offered
to public.
Price by amendment.
Proceeds—Purchase
of twin-engine aircraft, etc.
For details see issue of
&

May 30.
Allied Stores Corp., New

York (7/3)

May 29 filed 257,840 snares of common stock (no par).
Underwriter—Lehman Erothers. Offering—Stock is of¬
fered to holders of common stock of record June 18
at the rate of one share for each seven shares held at
$47 per share. Rights expire
Net proceeds will be added
applied to such purposes as
For details see issue of May

3 p.m. July 2. Proceeds—
to the general funds and
directors may determine.

Seattle, Wash.

Investment Co.

American

of illinois

16/25)

May 24 filed 90,000 shares 5% convertible preference
stock (par $25).
Underwriters—Alex. Brown & Sons.
Offering—Holders of 5% cumulative convertible pre¬
ferred plus cash adjustment.

Unexchanged shares will

demption of unexchanged shares of preferred.
American

Ala.

Manufacturing Co., Inc., Montgomery
-

May 31 (letter of notification) 300,000 shares. Offering
price, $1 a share. For purchasing additional equipment
and machinery, for plant expansion, and for other gen¬
eral corporate purposes.
There will be no underwriter
but the securities will be sold entirely within the state
of,Alabama by Harry Marks,, a,broker licensed by the
state, for an agreed compensation of $5,000.
American Water Works Co., Inc.,

N. Y*

March 30 filed 2,343,105 shares of common (par $5) plus
an additional number
determinable $ only . after, the re«v
suits of competitive bidding are known.

by amendment.

Underwriters—,

Probable bidders include

Dillon, Read & Co. Inc., White Weld & Co., and Shields
& Co. (jointly), and W. C. Langley & Co. and The
First Boston Corp. (Jointly). Offering—Price to public
by amendment.
Purpose—The common stock, together
with $15,000,000 10-year 3% collateral trust bonds (to

be sold privately) are to be issued to acquire certain
assets of American Water Works & Electric, liquidate
two subsidiaries, Community Water Service Co. and

Ohio Cities Water Corp., and provide cash working capi¬
tal.
Common stock is to be offered initially for cash
to common stockholders of parent and to public holders
of preferred stocks of
Community and Ohio in exchange
for their shares.
Stock not subscribed or issued under

exchange offers
For details
•

see

Offering—Stock will be offered to*,
Price by amendment. Shares are being sold

the public.

by six stockholders.
Associated

Magazine Contributors, Jnc., N. Y.

June 14 (letter of notification) 1,599 shares
stock (no par)
and 1,599 shares of class

to be sold for cash to underwriters.
issue of April 4.
are

American Yarn & Processing
(7/2)

$5 preferred

A common
(par 10 cents) and 250 shares of class B common

stock

stock (par 10 cents).

Offering Price—$100 a unit Con¬
share of preferred and one share of class
A common; 10 cents a share of class B common.
No
underwriting. For working capital; to enable the issuer
to publish a magazine.
sisting of

previously reserved 375,000 shares of common stock for
to

officers and executives upon exercise of
By this means, company issued 4,666 shares
options on 359,000 shares, leaving 23,667

options.

allotted

and

shares to be allotted, certain options having lapsed. The
shares being registered are those on which options may
be exercised on or before May 30.
Proceeds—Net pro¬
ceeds

will

added

working

capital.

Business-

Manufacture of aircraft.

Co., Mount Holly

•

Basila

June 11 (letter of notification) 2,000 shares of class A
preferred, 500 shares of class B preferred and 2,500 Shares
of common stock.
Offering prices, $100 a share each for
class A and class B preferred, and $20 a share for com¬
mon.
No underwriting.
To supply capital.

Chicago

May 29 filed, 59,862 shares of 3%% cumulative converti¬
ble preferred stock ($100 par).' Underwriter—Glore,
Forgan & Co., Chicago.
Offering—Preferred will be
offered for exchange to holders of $4.25 cumulative pre¬
on

basis of

share of

one

each share of $4.25 preferred.

new

ject to purchase by underwriters of all shares of new
preferred not taken in exchange.
Proceeds—Redemp¬
tion of old preferred not exchanged.
For details see
issue of May 30.
•

Beau

June

Brummell Ties,

Inc., Cincinnati,

(letter of notification) 1,000 shares ($1 par)
capital stock. Shares will be offered for sale to certain

employees. • Price—$10

No underwriting. Pro-,
ceeds—Will be added to general funds.
#

Vernon, Calif*

notification) 100,000 shares ($1 par)

capital stock and 917 shares ($100 par) preferred stock
in exchange for assets of a
net value of $191,700 owned by subscribers as co-partners
d.b.a. Bell Brand Foods, Ltd. No underwriting.
to be issued to subscribers

Proceeds—Will be added to general funds which
may be applied as follows: repayment of
$500,000 shortterm bank loan; payment of

November, on $1,000,000 21/&% bank notes; for purchase
of $8Q,Q0Q additional capital stock of Dean& Sherk Vo.,

March 21.

June 12 filed 15,000 shares cumulative convertible
pre¬
ferred stock (par $100).

Underwriters—Kidder, PeaPrice by amendr

body & Cot, and R. S. Dickson & Co*
ment.

$75,000 instalment, due in

Offering—Price, $3,125

■k

Brooklyn

'-vrj;.;--;

«-SI>fCMUSISIN —

■;:■■■;

ma%Ripley & Co., and Mellon Securities Corp. (jointly);
The

First

State and
,

the

■

•

*/'

Co.

contemplated to be commenced in the immediate future.

NeV* York Public Service Commission June
the

to the issuance of $34,000,000

company

•

scription to
at the

common

rate of one

stockholders of record

NewYork

•

Boston

•

Chicago and other cities'

Chicago
-

K.-' -*. >■

ri'iK:

♦
,

•

June 21

additional share for each five

com¬

shares held.

Rights expire July 8. Unsubscribed
shares will be offered to the public by underwriters.
Proceeds—To increase working capital and to finance
purchases of additional machinery and equipment, etc.
For, details see issue of May 30.

^California

Electric Power Co., Riverside, Cat.

May 10 filed $16,000,00p first mortgage bonds due June
I.

4S76.' nUnderwrl.tfers-*Naii(ies''- to
Probable

ment

bidders

be fhed by ^mend-

include

Dillon, Read & Co.,
Inc'rjlThe First Boston Corp.; Halsey, Stuart & Co., Inc.;
Kfaftgr, Peabody & Co.
Bids Invited—Company re¬
ceived bids for the purchase of the bonds on June 17,
but because of price and coupon limitations imposed
on^idders, no bids were received.
I

California Oregon

Power Co.

(6/25)

...

filed 312,000 shares of common

stock (no par).
Stqcfegwill be sold through competitive bidding. Under¬
writers—Names by amendment.
Probable bidders incldde;Blyth & Co., Inc.; The First Boston Corp.; Kuhn,
Co.; Smith Barney & Co. (jointly); Harriman
Riffiy & Co. Offering—Stock is being sold by Standard
Gas,and Electric Co., parent, of California.
Bids Invitee!
—Standard is inviting bids for the purchase from it of

312^0Q0v shares of commoh. stock pf/California., OregohV;
Si®#op6^1s Will/ beiVeceiV^ by Slandard/ at Room^
1UM231 South La. Salle Street, Chicago 4, 111., up to
(CS^Il;3Pfiajn; Ghicagb^DST): on June
1946^§®;--vrVfr
~ p.
is-

■

'■

"v
-

••

•

■■

i'-'

-5

;

,■>*'.V.

•

'."ft.

^Candego Mines, Ltd., Montreal, Canada

•

■

;

-t"

•

Corporate andMunicfyal
Securities

■

;

Ki d d cr, Peabody ^ Co.

INC.

ST., NEW YORK 5, N. Y.

!"
Founded 1^6$
J
'^Ti'Members(J. the New York an<l Boston Stock Exchanges;, /

3o«ton

•

Cincinnati

Philadelphia
St.iouis

HAiiover 2-2727

Pittsburgh

».

San Francisco

New York

Cleveland
■

^ r

.Y:.

filed 500,0P0 shares 6f common stock (par $1).
uWjteiWriters^abte^
^Ltd^ l^^orontdrV;Offer«
Ing^Sliares will be offered to public at 75 cents a: share.

M0|||

48 WALL

limited

Underwriters—Carl M. Loeb, Rhoades & Co., and Blyth
Inc.
Offering—Shares will be offered for sub¬

*■■■

Municipal Bonds

;

CORPORATION

bonds and

■:^Budd Company, Philadelphia (7/9)
May 24 filed 543,000 shares of no par common stock.

:V-.

C. J.DEVI NEs CO.

FIRST BOSTON

Boston

Corp.; F. S. Moseley & Co., and
(stock only). Proceeds—Company plans
outstanding long-term debt, to reim¬
burse the treasury for expenditures made for constructioiCTurpbses; and to provide funds for the completion
of #*construd;ion program now in progress'and one
Oti£.&

to refund its entire

fp Underwriters and Distributors of

Government Securities
☆

•

Union Gas Co.

Unifed States

(N. Y.)

May 3 filed $34,000,000 general mortgage sinking and
improvement fund bonds due June 1, 1976, and 100,008
shares of cumulative preferred stock ($100 par). Under¬

•

■■r
■

■

share. For details see issue of

per

Corporate arid Public Financing

the sale of preferred will be applied to the redemption
of 9,148.5 shares of preferred stock at $105
plus divi¬
dends.
Balance will be added to general funds.

share.

Bell Brand Foods, Ltd.,

June 14 (letter of

Underwriters—By

offered ,to

derwriters in connection with the public distribution of
the stocks. Proceeds—Net proceeds to the
company from

preferred for

Exchange offer is sub¬

Benguet Consol. Mining Co., Manila (6/20-21)
Marcli 15 * filed 702,302 shares of Capital stock rvalue
Ipar 1 peso, equivalent in IE 5; currency to* 50 >cents
per share),^ Underwriters—Allen & Co,
The shares are.
part of a total of. 852,302 shares, purchased by Allen,
& Co. from five stockholders.
Of the 852,302 shares,.
150,000 were sold privately at the cost price to Allen
& Co;
Purchase price to ARen Was $2;l07per '$hare.

i-N. C.

mon

Beatrice Foods Co.,

unspecified number

stock (par $5).

$7$90,000 preferred stock.

Mfg. Co. Inc., Wilmington, Del.

ferred stock-

common

writers—To be filed by amendment.
Probable bidders
include Halsey, Stuart & Co., Inc. (bonds only); Harri-

New York

May 29 filed 320,667 shares of common stock (pair $3).
Underwriters—No underwriting.
Offering—Company
issuance

company

Offering—Preferred and common stocks
the,public.
Prices by amendment.
Common shares are being sold by six stockholders in¬
cluding Central Republic Investment Co., A. C. Allyn
and Co;, Inc., and Lee Higginson Corp. The latter twocompanies and Central Republic Investment Co. (one of
the -selling stockholders) propose to
participate as un¬
will

one

Proceeds—Re¬

be offered at $26 through underwriters.

To be filed

(7/5)

Rollins & Sons Inc.

Aviation Corp.,

(letter of notification) 95,000 shares ($1 par)
preferred stock. Frice $1 a share. No underwriting. For
working cap! al.
i

Co., Fayetteville

33,639 shares of common stock (par $5).
Underwriters—Rauscher, Pierce & Co. Inc., and E. H.

30.

American Industrial Corp.,

•

June

West. Gas

for

Booth Fisheries Corp.,
Chicago /
May* 29 filed 15,009 shares of. cumulative convertible

preferred stock (par $100) and

Arkansas

•

underwriters

as agent for Weldon offer. Proceeds—Net
pro¬
ceeds to company ,for general funds.

amendment.

June 5 filed

•May 23 filed 100.000 shares of common stock.
Under¬
writers—Van Alstyne. Noel & Co.; Francis I. du Pont

offer and

of shares of

Alt American Aviation,

Julie 13 : <Ietter nlifotifi^
stock; (no par) on behalf of the company and 3,973JA
shares on behalf of Weldon Corp., Philadelphia, which
consols the company. Price—$25 a share. Underwriters
—Janney & Co. will act

•

Airtec

•

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

•

June

Now

Thursday, June 20, 1946;

/Boston

,..

FmLAibfitPHU

;;

Chicago

mwr,

Volume 163 f Number 4500

THE COMMERCIAL & FINANCIAL CHRONICLE

.Prbceeds-^Nefc proceeds, estimated at $300,000, will be ;/

|Usedffbr/bpemtions*/ Busluelb^
;ore.
.;;//¥.^/:/

For details see

(Canadian funds).
Underwriter
Frank P. Hunt,
Rochester, N. Y., is underwriter for sale of stock in

•

XJniled States. f Offering—Stock will be sold to public
vat 55 cents a share.. Proceeds—Of the net proceed?, $40,-

funds, will be -used

oreisfoundf

com-

/pany.Will erect a mill at aft'estimated cost-of $150,000. / Thb/ balance > \vili;
go into Working- capital^ Busdiessf! Company intbndfc to • explore for the mineral knoWn as '
'Huorite.
^

*.'

;

V -■/;/

:• ■

■

r
\

- •>

CentralEIectric&Gas Co., SiouxFalls,
'

SLD.f

May 29 tiled 35,000 shares of $2 cumulative preferced

£ stock, series A (no par), but with a stated value of $50 a
share, and 175,000 shares of common stock (par $1).
Underwriter—Paine. Webber, Jackson & Curtis^ Chi¬

Offering—The stocks will be offered to theK$ublic
* Proceeds—To
pay off $3,000,000 loan from First National Bank; Chicago and Harris Trust and Savings Bank, Chicago^ bal; ance working capital.
•
•
cago.

! at prices to be supplied by amendment.
4

Container

Corp. of America, Chicago (7/2)
/filed 141,496 shares ($20^^ par) capital ?$tbc;k.
Underwriters—Kidder, Peabody & Co. Offering—Shares
June

will be offered for subscription to present capital stock¬
one -share of new stock for each six

holders at rate- of

shares held.
Unsubscribed shares will be publicly offered* by underwriters. Price by; amendment* Proceeds 1
.

plied to payment of

portion of the; costs of

struction and improvement program for

plants and facilities of Container
Business—Manufacture of

ap¬
con-<

manufacturing

its

and

subsidiaries.

corrugated and solid; fibre

shipping containers.
;

Continental Air Filters Inc., Louisville, Ky.

June 3 (letter of notification) 20,000 shares of class A
and 20,000 shares of class B common, Offering price,

unit consisting of one share of class A and

one

Offering

—The stock will be

Proceeds—Shares

its officers and supervisor executives.
issue of May 30,
^

—Company contemplates that net proceeds will be

33871

Underwriters—Baker, Simonds & Co., Detroit.
■,

the company to

June 3 .filed 400,000 shares el common stock ($1 par)

Consol. Vultee Aircraft Corp., San Diego, Cal.
IVfay ;29; filect 77,134;;shares of common/stock {par $i)t

Underwriters—Names by amendment. Offering—Shares
are to be issued upon the exercise of options allotted by

Cardiff Fluorite Mines Ltd., Toronto, Can*

*a.-

^;V'r

offered

public at $10

share.

being sold by stockholders.

are

Dewey and Almy Chemical Co., Cambridge,
Mass. (6/26-27)
June 5 filed $5,000,000 convertible debentures, due 1976,
and 15,000 shares of common stock (no par). Company is
selling the debentures while the common stock is being
sold by Consolidated Investment Trust, which owns 35,800
shares of company's outstanding common.
Underwriters '
—Paine, Webber, Jackson & Curtis. Offering—Price by
amendment.;/ Proceeds—$2,610,825 from sale of deben-'
tures will be used to redeem $4.25 cumulative preferred)
stock which is callable at $105 a share plus dividends;
$1,500,000 will be used for construction of additional
manufacturing facilities and remainder will be added to
working capitaL
'
^
■.
f
'
^

Diamond T

Motor

Car

Chicago,

III.
March 29 filed 60,000 shares of common stock (par42).
Shares are being sold by certain stockholders. Underwrit¬
ers—Hallgarten & Co. Offerings—Price based on market;»
For details see issue of April 4,
\
Co.,

■

Central Ohio Light & Power Co., Findlay, Ohio

May 29 filed 30,000 shares of

common

Underwriters—If unsubscribed shares
writers

will

names

filed

(paf

stock

are

$10).

sold to Under¬

Prdbable

by amendment.

underwriters include Blyth & Co., Inc.; Otis &
Inc.;
Harriman Ripley & Co., Inc. Offering — The shares will

Cqi|

be offered
>

•

the rate of

for subscription to common stockholders at
new share for each 2.8 shares now%eld.

one

Unsubscribed shares may be sold to underwriters sor to
other parties. Proceeds—For expansion of

consumer ser-

vices and improvement of properties.
<

Chadbourn Hosiery Mills, Inc.,

Charlotte^ N. C.

(7/8)

•

June

17, filed 25,000 shares ($50 par) cumulative convertible preferred stock and 25,000 shares ($1 par) com-

stock. Underwriters—R. S. Dickson & Co., Char¬
lotte, N. C. Price—By amendment. Proceeds—Net pro¬
ceeds will be used to enlarge and improve property
of subsidiary, Larkwood Hosiery Mills, Inc., Charlotte;
to redeem 4,000 shares of same subsidiary's 5y2% cumulative preferred stock at $106 a share; to prepay $473,500
2% bank loans and to purchase machinery andequipment for mills of the company and Us subsidiaries.

; mon

.
"

•

Chicago & Southern Air Lines, Inc., Memphis,
Tenn. (7/1)
1

June 10 filed voting trust certificates for 170,000 Shares

i of

stock;
In addition, the company
registered 42,000 shares of common issuable upon the
exercise of warrants for purchase of common stock at
y $30 a share up to Oct. 27, 1955. Underwriters—KCbbon,
MeCormick & Co., Chicago, and I. M. Simon & Cp., St.
-Louis, Mo. Price by amendment. Proceeds—Purchase
of aircraft and spare parts for training costs and foreign
route installation costs, etc.
no-par

of class B

•

May

100,000 shares

filed

Underwriters—Lehman

■

•

(par $5).

stock

Offering—4^3^

Clinton Industries, Inc., St. Louis

j
.

•r

stockholders

have

waived

their

rights to subscribe for 45,600 shares. Six shareholders
have agreed to sell 75,000 shares, which, together with
unsubscribed shares being offered by the company, will
be offered to the public through underwriters.
Price
by amendment.
Proceeds—$375,000 will be applied for
costs of constructing a four-story annex to
company's
Providence, R. I., plant; $250,000 for rehabilitation of
Providence factory, machinery and equipment; $13,500
for purchase of land adjoining factory; remainder to
replace working capital previously expended, to pur¬
chase equipment and fixtures for its Chicago offices
and to increase working capital.
Business—Manufacture
of costume jewelry and simulated pearls.

Cyprus Mines, Ltd., Montreal, Canada
May 31 filed 500,GOO shares of common stock (par $1).
Underwriters—Sabiston-Hughes, Ltd., Toronto.
Offer¬
ing—Shares will be offered to the public at 75 cents a
share.
Proceeds—Net proceeds, estimated at $300,000,
will be used for mining operations. Business — Explor¬

Nev.

May 28 (letter of notification) 176,330 shares of common
stock.
Offering price, 156,330 shares at 30 cents a share.

20,000 shares

are

to be issued at 25 cents a share.

developing of mining properties.
Co., San Francisco.

For

Underwriter—

offered

Ducommun Metals & Supply Co., Vernon, Calif.

May 31 filed 125,000 shares of common stock (par $2)v
Underwriters—Hill Richards & Co.f Offering—105,000 /
shares will be offered to public.
Price by amendmentand 20,000 shares will be offered for sale to officers and'
employees not at present stockholders and to the employees's bonus and profit-sharing trust.
Proceeds—*/
Approximately $1,000,000 will be, used to expand and *
increase inventory and * balance to increase working;
capital.
-

Dallas, Texas
common

Rochester, N. Y.

May 20 (letter of notification) 40,000 shares of common
stock (par $5). Price to public, $5 per share. Proceeds—
To finance the manufacture of corporation products and
to

repay

loan, the proceeds of which

were

used for*

manufacturing .purposes, v Issue not underwritten,;: but ?
if company is unable to sell stock it may later secure
broker's assistance.
'
r
1
•

50,000 shares of 5% cumulative convertible
preferred stock (par $10) and 100,000 shares of common
stock (par 10c). Stock being sold by five stockholders.
Underwriters—Scherck, Richter Co., St. Louis. Offering
—Offering prices are $10 a share for the preferred and
$4 a share for the common.

May 23 filed 175,000 shares

(6/25)

The Broy

Delhi Oil Corp.,

in connection
Not underwritten.,

purposes

Douglas & Lomason Co., Detroit, Mich.

Electronic Traps, lhc.,

Dayton Consolidated Mines Co., Virginia City,

further

for experimental

May 28 filed 92,118 shares of common " stock (par $2);/;
Underwriters—White, Noble & Co., Grand Rapids, Mich.;
F. H. Roller & Co., Inc., New York, and Miller, Kenower
& Co., Detroit.
Offering—Stock will be sold to public/
at $6,125 a share.
Proceeds—Of the total eight stock-,
holders are selling 73,208 shares.
Net proceeds to com¬
pany from sale of 18,910 shares will be used to pay
balance due in purchase of certain real estate; plant
addition; additional machinery and equipment.
For
details see issue of May 30.

ing for ore.

filed

stock

500)

(par

El'paso. (Texas); Natural Cas COr:;(7/f;)|f¥/l

June 30 filed 75,000 shares ($100 par) cumulative pre¬
ferred stock and 100,057 shares ($3 par) common stock.

Underwriters—By
include

amendment.;

underwriters

probable

White, Weld & Co., and Stone4 & Webster Se-.

curities Corp. Offering—14,797 shares of preferred stock
will be offered;!© holders of ,7% cumulative preferred:
stock on a share for share exchange basis plus a cash/
payment to the exchanging shareholder. /The remaining/;
60,203 shares and any unexchanged shares will be sold
to underwriters for resale to the public.
Common stock
will be offered for subscription to present common stock¬
holders at the rate of one share for each six shares now,
held.
The subscription offer expires on July 18, 1946.

Proceeds—To be added to general funds.

Proceeds—Proceeds will be added to cash balances to be

Unsubscribed shares will be purchased by underwriters

applied to the payment of current or other liabilities.

Prlce-~Price byumendment:{approximately $42 per share).
Proceeds—Finance con¬

upon

Manufacture of corn products and candies.
..u:

■■

•*

-.vx

•

'•

stock, series A - (par $50).
Underwriter—Cehiiii^Ete~public Co. (Inc.), Chicago.- Offering—New preferred
will ; be offered in exchange to holders of. cobS^py's
i
$2.75 cumulative preferred on a share for share basis
/ plus a cash payment of $1 by the ooinpafty and 'dlvMdnds
/ accruing on the $2.75 stock.
Common stockholders, will
\ be Offered the right to subscribe .for- the new*st$M at
$52.50/a share In the ratio of one share, of ne^jpro/jferred loriOaek 12^^share? ofcommonuwnedSRemdihT
ing shares will be sold to underwriters who will reoffer
it to the public) a$$5?.50 a share.-Proceeds^Tainedeem
*

|*m^bangedshare#bf $2*75 preferred at$53f5Q5#*share
as

June

of the

June6filed60,000-sharesemulative^re^rred

and

be offered

for sale to

common

Southern Union

outstanding

Offering—Shares will
stockholders

Gas

of record

Co., which owns all
corporation.

stock of the

common

...

Consolidated Retail Stores, Inc., St. Ldii&

Certain

used

Underwriters—No underwriters.

company

held.

with development of helicopters.

to executives and key employees of
the exercise of options for. purchase of
such stock.
Price—Options already issued provide for
the purchase of the capital stock at $16.66% a share,

.will, be
x

(7/8)

60,000 shares of capital stock (psjf $1).
Underwriters—No underwriters. Offering—The; fhares
June

will

June 4 filed

/being sold by Bankers Securities Corp., parent.^Price
; by amendment.
- .

(7/5)

filed

134,814 shares common stock (no par).
Underwriters —Emanuel
Deetjen & Co.
Offering—
Company is offering 59,814 shares to stockholders for
subscription in ratio of one new share for each seven
shares

New York

Inc.,

(letter of notification)? 150,000 shares of common/
stock (par $1). Price to public, $1 per share. Proceeds

Dazey Corp., St. Louis, Mo.

(6/25)

common

Brothers.

Doman-Frasier Helicopters,

To equip factory

June 3

Coro, Inc., New York

June

City Stores Co., Philadelphia

underwriting.

and for working capital.

common

common.

additional working capital.

Denman Tire & Rubber

Co., Warren, Ohio

(6/20-21)

May 17 filed 50,000 shares of 5%

cum.

conv.

preferred

stock (par 10) and 95,000 shares ($1 paf) common stock.

Underwriters—Herrick, Waddell & Co., Inc. OfferingCompany is offering the 50,000 preferred shares to the
public^ The 95,000 shares of common stock are issued
and outstanding and are being sold by the present own¬
ers.
Price to public; preferred,; $10 per share; com¬
mon, $8 per share.
Purpose—Proceeds will be added
to general funds.
.

Detroit Aluminum

Mich,

Brass Corp., Hamtramck,

(7/1)

June .11 filed

181,440 shares ($1.25 par)

common

stock.

for sale io the public.

struction of a natural gas pipe line to California at an
estimated cost of $41,412,000, and to retire outstanding//

funded debt and preferred stock. Proceeds from $25,900,000 new bonds to be sold for cash and a new $8,500,000
seven-year bank loan will be used for construction andrefinancing program.
•

/ ;

;

Florida Public Utilities Co., West Palm Beach,
Fla.

(7/2)

unspecified number of-sharea of
$3).
Underwriters—Starkweather i
& Co., New York, and-Clement A. Evans and Co., Inc.,
June

common

filed

stock

(par

Atlanta, Ga. Offering—The shares will be offered to the;
public. Price by amendment. Proceeds—Shares being
registered are owned by J. L. Terry, President, who will.
receive net proceeds; Business—Public utility*
v

&%:£&■-

Flying Freight Inc., New York (6/28)

■

May 6 filed 300,000 shares common stock (par $1). Un-f
yy %

The Marine Midland Trust Company

Industrial, Public Utility, Railroad
and

OF NEW YORK

Municipal Securities

Transfer
VMiirSMy

Hemphill, Noyes CS. Co.
4)

Members New York Stock Exchange

NEW YORK

PHILADELPHIA

ALBANY

PITTSBURGH

CHICAGO

?
INDIANAPOLIS

Agent

•

Registrar

•

Food Fair Stores,

15, N. Y.

RECTOR 2-2200

TRENTONWASHINGTON.
«••••••••

•

Offering—Price to

ness—Company was incorporated on March 9, 1946, to
operate as a charter air carrier.

Trustee

ONE HUNDRED TWENTY BROADWAY
NEW YORK

derwriters—J. F. Reilly & Co., Inc.

public $3.50 per share. Proceeds—Proceeds will be used
for the purchase of six land planes, ten flying boats, re4;
conditioning of flying boats and working capital. Busi¬
t

Inc., Philadelphia

April 29 filed 40,000 shares of common stock ($1 par)//
issuable upon exercise of options to purchase common/
stock.
The options to purchase common stock entitle;
/; the holders to purchase between Sept. 5, 1946 and Sept /
4, 1950, shares of common stock at $19.50 per share /
(Continued on page 3388)

•

(Continued from page 3387)

Proceed*—

The options were granted on Sept* 5, 1945.
In the event that all options are exercised,

corporation

which it intends to use for in¬
creasing inventory, acquiring and equipping additional
supermarkets, warehouses, etc.
x
f *
realize $780,000,

will

'/,

•

V 't

Forest City

$1K

* 1

^ v

Manufacturing Co., St. Louis, Mo.

(7/8)
June 17, filed 280,000 shares ($1 par) common stockUnderwriters—f'eltason, Tenenbaum Co., St. Loms. Of¬
fering—Shares will be offered publicly at $10 a share.
Proceeds—Net proceeds go to the selling stockholders.

Business-Manufacturer of junior and women's dresses.
FR

Corporation, New York (6/21)

shares common stock (par 500)
selling 150,000 shares ; and two
officers 12,500 shares. Underwriters—First Colony Corp.
Offering—Stock will be sold to public at $5.85 a share.

i May 23 filed 175,000
of which company is

Proceeds—Construction of plant, purchase of equipment,

For details see issue of May 30.

working capital.

Globe Freight Airline, Inc.,

June

Hartford, Conn*

(letter of notification) 60,000 shares ($1 par)
common stock.
Price, $3 a share.
No underwriting.
For purchase of two DC-3 aircraft and equipment and
for working capital.
'

Front Range Oil &

Drilling Co., Denver, Colo.

May 20 (letter of notification) 1,493,303 shares of capital?
stock (par 50) and 20,000 shares as a bonus offering
donated by Harry J. Newton, President.
OfferingPrice 50 a share.
100,000 shares allotted to present
shareholders to purchase at par and receive also a

29% share bohus^with each purchase.

No underwriting

present.
Proceeds—To drill oil well in Albany
County, Wyo., to acquire further oil and gas interests
and to pay officers' salaries and general expenses.
at

Funsten

(R. E.) Co., St. Louis, Mo.

(6/25-7/5)

of 4% % cumulative convertible
preferred stock (par $50) and 196,137 shares of common
June 3 filed 15,684 shares
stock (par $1).

writers.

cumulative

Offering—Price, $10
pansion program,^
•

Proceeds—To finance ex¬

Grand Valley Corp.,

New York

Ont.

Blyth & Co., Inc., and Mellon Securities Corp.
—•Refunding. For details see issue of May 30.
General Builders
%

(6/24-28) -

Proceeds

Supply Corp., New York

225,000 shares of com¬
mon stock (par $1). Underwriter—Leven Brothers; New
York City.
Price to public $1 per share. Corporate
purposes, such as reconditioning existing well, drilling
new well, additional equipment, etc.
Great Lakes Chemical Corp./

•

Filer City, Mich*

June 12

(letter of notification) -118,728 shares common
(par $1).
Offering price, $1 a share. No under¬
writing.
For drilling new brine wells, retirement of
current notes and working capital.
v

stock

Great Lakes Plating Co.,

•

June T7

Chicago

(7/8)

filed 130,000 shares ($1 par) commbh stock.

Underwriters—Dempsey & Co., which owns and is sell-*

ing the shares being registered, will select the under¬
writers and may include itself in the underwriting group.
Offering—Of the total, 115,000 shares will be sold to
underwriters for resale to the public, and 15,000 shares
to be offered to certain officers, directors and key

are

employees of the company. Price—Price of the 115,000
shares by amendment. Price of the 15,000 shares to
certain employees, $6.20 a share. Proceeds—Proceeds go
to the selling stockholder. Business—Engaged in plat¬
ing articles with various types of metallic finishes.

stockholders

June 20.

Subscription war¬

July 10, 1946.

Subscription price

of record

rants will expire on

be paid either in cash or by surrender of first mort¬
6% bonds; due 1953, at principal amount, or partly
in cash and partly by surrender of such bonds.
Proceeds
—For redemption of $646,200 6% first mortgage bonds*
Balance of proceeds will be added to general funds.
may

gage

•

Cubby Mines, Ltd., Montreal, Canada

May 31 filed 500,000 shares of common stock (par $1).
May 31 filed 40,000 shares of 5% cumulative convertible
Underwriters—Sabiston-Hughes, Ltd., Toronto. Offer¬
preferred■;stock (par $25) and 170,000 -shares of common
stock (par $1).
ing—Shares will be offered to public at 75 cents a share.
Underwriters—-Allen & Co. Offering—
Proceeds—Net proceeds, estimated at $300,000, will be
11,238 shares of new preferred will be offered in ex¬
used for mining operations.
Business—Exploring for
change to holders of $7 cumulative (no par) preferred
stock on basis of one share of old preferred for 4.6 shares /ore. ^
^ -v?.
.
©f new preferred. v Remaining 28,762 shares of preferred
Gulf Atlantic Transports Co., Jacksonville, Fla.
and all the common shares will be sold to underwriters
who will offer them to the public $25 and $4 a share,
Jan. 17 filed 270,000 shares of common stock (par $1).
respectively. Of the common being offered, the com¬
pany is selling 100,000 shares and 12 stockholders areselling 70,000 shares. Certain warrant holders of com¬
pany have agreed to sell to underwriters warrants for
purchase, during a period of four years, of 40,000 shares
of common.
Proceeds—Approximately $950,000 will be .
added to working

capital.

Underwriters—Blair & Co.

Offering—Stock is being of¬

Holders
approximately 200,000 shares have agreed to waive
their preemptive rights.
fered to present

shareholders at $3 per share.

Feb. 27 filed 215,000 shares of common stock ($2 par).
Shares are being sold by certain stockholders.
Stock

General Cable

preferred, $50 per share.

General Securities

June 7 filed 350,000

May 16 (letter of notification) 19,984 shares of common
stock.
Offering price, $6 a share.
Underwriter—Gen¬
eral Finance
purposes,

General

shares of common

stock (par $5)

20,000 shares of 4% convertible preference stock
(par $50).
Underwriter—Blyth & Co., Inc., New York
Offering—Prices by amendment. Of the 350,000 common
and

Corp., Atlanta, Ga.

shares, 50,000 will be offered by company without un¬
Proceeds—For corporate ; derwriting to certain key employees. ,v The 20,000 shares
of preference stock are being sold by C. N. Hilton, Presi¬
dent.
Proceeds^-Net proceeds to the company will be
$hoe Corp., Nashville, Tenn. (6/27-28)
added to general funds.

Co., Atlanta, Ga,
;

;;

May 21filed 64,030 shares ($1 par). common stock,
Underwriters—Smith, Barney & Co., New York. Offer-

•

Illinois Power Co.,

Decatur, III*

(7/8)

lag—Stock is being offered for subscription to common
June 17, filed 200,000 shares ($50 par) cumulative pre¬
stockholders of record June 11 at $40 per share at rate
ferred stock and 966,870 shares (no par) common stock.
pf one share of common for each 10 shares held.; Rights
Underwriters—By competitive bidding. Probable bid¬
expire June 26. Unsubscribed shares will be purchased
ders include Blyth & Co., Inc. and Mellon Securities
/by underwriters and offered to public. Proceeds—Net * Corp. (jointly) and Morgan Stanley & Co. and W. E.
proceeds will be added to general funds to be used from
Hutton & Co. (jointly), Proceeds—Net jproceeds from the
time to time for such corporate purposes as directors
sale of preferred will be used, to reimburse the com¬
anay determine.
pany's treasury for construction expenditures. Net pro¬
Glenmore Distilleries

Co., Louisville, Ky. ( 6/25)

May 24 filed 150,000 shares of class B (par $1) common
stock (non-voting). Underwriters—Glore, Forgan & Co.,
and W. L. Lyons & Co.
Offering—125,000 shares will
be offered to the public and 25,000 will be offered to

certain officers and employees of the company.

Price

by amendment. Proceeds—Net proceeds will be added
to general funds to be used as working capital.

Chicago

Minerals

Chemical

Corp.,

(7/9)

May 21 filed 145,834 shares of common stock (par $5).
Underwriters—White, Weld & Co. Offering—Company
offering 131,769 shares to present common stockhold¬
of record

June

and

holders

of stock

warrants for subscription at the rate of one

purchase/
common'

share for each five shares held.: Rights expire July 8.
Price by amendment.
Underwriters will purchase un-t
subscribed shares

plus an additional 65 shares. Under¬
not, as they, determine, make a
public offering of unsubscribed shares.
The remaining'
14,000 shares of common stock will be offered to "certain
officers and employees."
Proceeds—Construction and
equipment; For details see issue of May 23,
writers

may

or•, may

International Paper Co., New York
April 26 filed 400,000 shares of $4 cumulative preferred
stock (no par) and 100,000 shares of common stock
(par $15). Offering-r-Company is offering td holders o|'
its cumulative convertible 5% preferred stock
(par
$100) the right to exchange 400,000 of such shares for*
new preferred and common on the basis of one share
of new preferred and
share of common for each
share of 5% preferred.
Exchange offer will terminate/
July 1. For details see issue of May 2.

Iowa Public Service

Co., Sioux City, la. (6/24)'

May 21 filed $13,750,000 first mortgage bonds, due 1976;
42,500 shares ($100 par) cumulative preferred stock,
and 137,333 shares ($15 par) common stock. Underwriters
—Names by amendment.
Probable I bidders include'
Halsey, Stuart & Co. Inc. (bonds); First Boston Corp.;
W. C. Langley & Co. (stock); A. C. Allyn & Co., and
Blyth & Co., Inc. Proceeds—Refunding improvements tot;
physical properties, additional working capital.
Bids
Invited—Bids will be received for the purchase of the
securities by the company at office of Chemical Bank & t
Trust Co., New York City, up to 10:30 a.m. EDST, June
p
24, the bidder to specify the coupon rate, not greater
than 3% on the bonds and a div. rate not greater than ft
4% on the preferred stock.

Jack & Heintz Precision

Heights, Ohio

Industries, Inc., Maple
(6/25-26)

May 31 filed 50,228 shares of cumulative preferred stock'
(par $50), 4% series (convertible prior to April 1, 1956)
and 550,000 shares of common stock (par $5).
Under¬
writers—Blyth & Co., Inc. Offering—Stocks will be of- fered to public.
Price by amendment. Proceeds—Will
be added to working capital.
•

James Gas Co., Inc., Arlington, Va.

11 (letter of notification) 3,500 shares (no par)
capital stock. Price, $50 a share. Underwriting—Paul
L. James, President and Treasurer, will consummate
sales.
2,800 shares are to be offered in exchange for;
title to oil and gas leases.
The remaining 700 shares
will be sold for cash.
For developing gas wells and %
other corporate purposes.

June

•

Hayes Manufacturing; Corp., Gr. Rapids, Mich.

Corp., New York (7/27)
acquired by selling stockholders in exchange for 432,000
shares common stock (par: $3) of American Engineering
May 17 filed 150,000 shares of 4% cumulative first preierred stock (par $100) and 150,000 shares of 4% cumula¬
Co. Underwriters—To be named by amendment. Offering
tive convertible second preferred stock (par $50).
Un¬
—Price to public" by amendment.
Stop order hearing
derwriters—Blyth & Co., Inc.
Offering—Holders of
by SEC. For details see issue of March 7.
150,000 outstanding shares of 7% cumulative preferred
stock are offered the privilege of exchanging their
Hennegen-Bate? Co., Baltimore, Md.
shares for 150,000 Shares of the first preferred stock ;
May 23 (letter of notification) 1,504 shares of stock to
and 150,000 shares of the second preferred en basis of J be sold on behalf of eight stockholders. Offering price
©ne share each plus $12.50 cash for each share of 7%
$75 a share. Underwriters—Safe Deposit & Trust Co. of
preferred. The exchange offer expires at 3 p.m., June
Baltimore as agent for selling stockholders.
Net pro¬
26, Shares of first and second preferred not taken in
ceeds go to the selling stockholders.
axriiange will be sold to Blylh & Co., Inc., and associates
•for resale to the public. Price—Preferred, $100 per share;
Hilton Hotels Corp., Chicago (6/27-7/1)
second

International

ers

June 19 (letter of notification)

Grocery Store Products Co., Union City,N. J*

Gatineau Power Co., Ottawa,

The remaining will be sold at $50 a unit.
underwriting. Of the proceeds, $900 will be used
to satisfy demand notes and $1,850 to make club house:
repairs and improvements.

May 27 filed for an undesignated number of shares of
capital stock (par 250). Underwriters—No underwriters
but company has entered into an agreement with Edgar
W. Garbisch, President for purchase of any unsubscribed
shares.
Offering—Stock will be offered for subscription

May 27 filed $45,000,000 series C and $10,000,000 series
I> first mortgage bonds, due 1970 and $9,500,000 of sink¬
ing fund debentures, due 1961.
Underwriters—To be
decided by competitive bidding.
Possible bidders in¬
clude The First Boston Corp.;. Halsey Stuart & Co., Inc.;

debentures.

30,000 shares ($10 par)
stock.
Not underwritten;

preferred

Shares are owned by the under¬

Offering—Prices by amendment.

which mature Aug. 1, 1946, will be offered the right to
exchange their debentures, for a like amount of the new

Gordon Stores Co., In&/ Denver* Colo*

Underwriters—G. H. Walker & Co. and

Alex. Brown & Sons.

Thursday, June 20,1946

June 10 (letter of notification)

CHRdNIGtl

THE C0MMERCXA3t & FINANCIAL

3388

Key note Record ings, Inc., New York. (6/21 -24 )'

June

(letter of notification)

79,000 shares common

stock

(par 50c) and warrants to purchase 27,000 shares
of common. Price—$3.75 a common share and 5 cents
a warrant.
Underwriter—Simons, Linburn & Co. Pro¬
ceeds—$35,000

for

$20,000

inventory;

for

plating

and

mixing units for California plant; $65,000 for additional ^
plant; $50,000 to recording artists, and balance to work¬
ing capital.
•

Hoppers Co., Inc., Pittsburgh, Pa. (7/8)
^
18, filed 150,000 shares of cumulative preferred

June

stock. Underwriters—Mellon Securities Corp,

Offering—» •a;

New preferred will be offered in . exchange, on a share
for share basis, for company's outstanding shares ot

Unexchanged shares wilt
amendment, Pro¬
to redeem unex¬
changed shares of old preferred at $107.50. Business—

4%%

cumulative preferred.

offered to the public. Price—By
ceeds—Net proceeds will- be used
be

Products include those manufactured

from crude and

coal tar products and chemicals related thereto,,
bituminous protective coatings, treated and untreated
refined

forest products, coke and gas, machine shop and foundry
products and construction of byproducts coke plants,

chemical plants

and related equipment and structures.

Kurz-Kasch, Inc., Dayton, Ohio (6/25)

75,000 shares ($1 par)
Underwriters—Smith, Hague 8c Co., De¬
troit, and F.H, KoUer & Co., Inc., New York. Offering
June

common

(letter of notification)
stock.

—Price is$4 a

share.

Le Roi Co*f Milwaukee,

Wis* (7/8)

17, filed 40,000 shares of 4V2% ($50 par) cumula¬
tive convertible preferred stock.
Underwriters—Wis- '
consin Co> Price—By amendment. Proceeds—Net pro¬
ceeds will be added to general funds.. Company is plan¬
ceeds from the sale of common will be applied for re¬
ning a $1,025,000 plant expansion program for increasing
demption of 5% cumulative convertible preferred stock
These expenditures are ex¬
not converted into common prior to the redemption , its productive capacity.
date.
The balance will be added to treasury funds. ; pected to include purchases of equipment, new tooling,
expansion of the company's main plant at West Allis,
Business—Public utility.
/\
•
"
Wis., and purchase of a plant at Cleveland, O. Business•
Indian Lake Community Club, Inc., Denyiile, N. J.
Manufacture of industrial gas and gasoline engines, port¬
able air compressors, highway mowing machines and
June 14 (letter of notification) $5,000 4% debentures,
due 1951. Holders of the company's $2,250 of debentures-; engine-generator sets.
_

June

.Volume 163

Number 4500

Mines, Ltd., Toronto

(6/26)

June 7 filed 250*000 shares of capital stock (par 40c).
Underwriters
Names to be supplied
by amendment.
Offering—Stock, will be offered
publicly in the U. jS. at
40c a share
(Canadian money).'
estimated at

company.

(Shewing probable date of offering)

Proceeds—Proceeds,

$75,000, will be

used in

Business—Exploring

and

June 20,

operation of the

developing

mining properties.

June

convertible

preferred

for

each

Subscription price by amendment.

'I.

Common

Prestole Corp.

a.m. EDST
Bonds, Preferred and Com.
Nevill Island Glass Co. Inc
Class A and Com.
Ohio Edison
Co., 12 Noon EDST
...Common

Pro¬

Timely Clothes, Tne-

June

share for each

$53

Aeronautical

(6/27)

flnwiwinn

seven common

ratio

shares held.

subscription privileges expire June 26.
Menasco

one

Douglas & Lamason Co
Funsten (R. E.) Co
Glenmore Distilleries Co

new

each

five

June

share.

property, mining and
capital.

Corp.; Blyth & Co., Inc.: Coffin

& Burr. Inc.;
Kidder,
Peabody & Co.; White, Weld & Co., and Shields & Co.
(jointly). Proceeds—Principally refunding. For details

issue of May 23.

Sardik Food Products
Corp

tgjf. (6/25-28)

May 31 filed 224,781% shares

of common stock

Underwriters—Emanuel, Deetjen
will be offered to

public.

ceeds—Of the net proceeds,

(par $1).

& Co. Offering—Stock
Price by amendment.
Pro¬

$35,000 will be used to dis¬
charge the balance of outstanding notes,
$200,000 will be
used for plant
expansion, and the balance will be added
to working capital.
Mountain States Power
Co.,

Albany, Ore. (6/25)

June 6 filed 140,614 shares of
common stock
(no par).
Underwriters—To be determined by
competitive bidding.
Probable bidders include
Blyth & Co.,
&

Co. and

Inc.; Kuhn, Loeb

Smith

Barney & Co. (jointly);
Harriman,
Ripley & Co.; The First Boston Corp.
Offering—Shares,
which are owned by Standard Gas &
Electric Co. and
constitute 56.39% of the
company's outstanding common,
will be sold at competitive
bidding. Proceeds—Net pro¬
ceeds will go to Standard Gas.
O

;

Murphy (6. C.) Co., M[cKeesport, Pa.
(7/3)

June

13 filed

250,000 shares of

common

Underwriter—Smith, Barney & Co.

stock (par $1).
Price by amend¬

ment.
Proceeds—Redemption of outstanding 4%% pre¬
ferred s^ock at $109 a share plus
dividends.
BusinessOperation of a chain of 209 retail stores.

National

Cellulose

Corp., Syracuse, N. Y.
May 31filed 200,000 shares of common stock
(par $1)
with
warrants

purchase

20,000

common.

Underwriters—Floyd D. Cerf Co., Inc. Offering—Stock
will be offered to
public at $6 a share.
The warrants
will be sold on the basis of one
warrant for each 10
shares of common purchased.
Proceeds^-Es vimated net

proceeds of $1*020,000 will be used to pay off
$61,000 of
loans, to purchase plant and equipment at an estimated
cost of $751,620 and the balance as
additional working

capital.

Offering

price,

$35

8,500 shares of common
share.
Underwriters—

National Iron

by Clement A. Evans & Co., Inc.
Proceeds—
For redemption of
outstanding $2.50 class A non-cumula¬
tive stock.
•

National Research
Corp.,
14

common

writing.

Works, San Diego, Calif.

(letter of notification) 18,500 shares of common
tock.
Offering price, $4.12% a share. Underwriters—
Nelson Douglass.
For general corporate purposes.

General Cable Co

•

First and Second Preferred

Norcross-Eldridge Inc., Rutland, Vt.

7 (letter of
notification) 2,500 shares ($100 par>
preferred stock.
Price, $100 a share.
Underwriters—

Stock will be sold in the State of
Vermont by the com¬
pany itself; in Massachusetts sales are to be made
by

Kidder, Peabody :C<$

For increasing working capital*

(letter of notification)

North American Car
Corp., Chicago
June 14 filed 36,000 shares

Boston, Mass.
8,000

($1

par)

stock.

Offering price, $37.50 a share. No under¬
For general corporate purposes.

National

Securities

Research Corp.,

N. Y.

(7/8)
June 17,

filed 7,000,000 shares (bond series, low-priced
bond series, preferred stock
series, income series, spec¬
ulative series, stock series, industrial
stocks series, se¬

lected groups series and
low-priced common stock series)
in National Securities series.

Sponsor—National

ities & Research

National

secur¬

Corp., NewfYork. Offering—At market.

Proceeds—For investment.
•

Preferred

July 27, 1946

•

June

•

Capital Stock

Manufacturing Corp

June

(letter of notification)

Securities

(7/s)

Business—Investment trust.
Research Corp.,

N. Y.

;
Corp., N. Y.

Offering—At market. Proceeds—For investment.
ness—Investment trust.

(7/5)

$2 cumulative convertible^

preferred stock (no par).
Underwriters—Glore, Forgam
Price by amendment.
Proceeds—Of the net pro¬
ceeds, $1,000,000 will be issued as a loan to a new sub¬
sidiary whose name tentatively is Illinois Refrigerator
Car Co.; $200,000 to reimburse the
company's
& Co.

for

treasury

its

original investment in the capital stock of the
subsidiary. Company has purchased the entire out¬
standing shares of common of North Western Refrigera¬
new

Line

Co.

for

dissolved

and

Illinois will

tor

$3,600,000.

North

Western

will

the

amount

assume

parent

trust

$3,600,000;

borrow the

off its current bank loans amounting to $3,600,009*

pay

Business—Leasing tank and refrigerator
and

$1,000,000 from,

company; redeem $1,163,843 of equipment
certificates originally issued by predecessor and

mileage basis.

cars on a

•

O-My Food Products Co.,

Inc. Mountain

Calif.

writing. For development of mining claims in Shoshone
County, Idaho, and for other mining operating expenses.
Island

(6/24)

Glass

Co.,

Inc., Pittsburgh

common

will be offered to the
one

stock

(par 10c).

(par $1) and
Underwriters

public in units of

one

share of

share of common at
$10.10 a unit.

Pro¬

proceeds, together with $700,000 to be real¬

ized from the sale of series A and B
bonds, will be used

for construction of

plant

Neville Island (near Pitts¬

burgh) and for equipment. Any remaining
proceeds will
go into working capital.
.

(letter of notification)

non-assessable

shares of

common

View*, j

1,050 shares ($100 par)
publicly and 1,059 I

to be offered

to be issued

Russell V. Stahl and

Grace

E. Stahl, who are the President and
Vice-Presi¬
dent of the company, in exchange for their
partnership
business to the company. Public

share.

—Amott, Baker & Co., Inc., New York. Offering—Stocks
clas's A and

June

■

June 3 filed 60,000 shares of class A stock

60,000 shares of

rental

Busi¬

Nevada-Stewart Mining Co.,
Spokane, Wash.
June 6 (letter of
notification) 50,000 shares of common
treasury s ock. Offering^ price, 40c a share. No under¬

Neville

all

of its assets and
liabilities and change name to North Western
Refrigera¬
tor Line Co.
New company will issue serial notes
in

the

June 17, filed 300,000 shares in First
Mutual Trust Fund.
Sponsor—National Securities & Research

ceeds—Net

ay 21

Solar

Preferred and Common

Headed

Monogram Pictures Corp.,
Hollywood, Calif.

& Common

July 15, 1946

Common

Ga.

stock.

Common

Preference

National Manufacture and Stores
Corp., Atlanta,
12

Preferred
...

July 11, 1946
Wyandotte Hotel Co. Inc..—Debentures

Chicago & Southern Air Lines, Inc. (vtc) .Common
Detroit Aluminum & Brass
Corp
Common

June

Common!

International Minerals & Chemical Corp...Common

July 1, 1946

•

Common

Corp

Beatrice Foods Co.
Budd Co

Common

El Paso Natural Gas Co

.Common
.Preferred;

July 9, 1946

1946

Flying Freight Inc

Missouri Power &
Light Co., Jefferson City, Mo.
May 22 filed 7,500,000 first
mortgage bonds, due 1976,
and $4,000,000 ($100
par) cumulative preferred stock.

Trust Fund

Corp

Stratford Pen

Common

27,

Several Series

Spiegel Ine

Common

June 28, 1946
American Investment Co. of Illinois

Proceeds

Bonds and stock to be sold
through competitive bidding.
Underwriters by amendment.
Probable bidders include
Halsey, Stuart & Co. Inc. (bonds); The First Boston

Rome Cable

Willys-Overland Motors, Inc...Preferred and Com.

common

Foster and Carl W. Har-

Preferred*
Preferred

Radio-Keith-Orpheum Corp.-—-,-

Debs, and Com.

General Shoe Corp

see

Corp

Preferred and Common

National Secur. & Research
Corp
National Secur. & Research
Corp...

Van Norman Co

Operating, Inc., Seattle, Wash.

12lkc

Illinois Power Co
Le Roi Co

Equip. Trust Ctfs.

.....Common

Koppers Co

26', 1946

June

Underwriters—Jesse R.
rell, Seattle.
Offering—Price,
<—Payment of loan, acquisition
development and for operating

Great Lakes Plating Co.

Hilton Hotels Corp
Preference and Common
Mada Yellowknife Gold Mines
Ltd—Capital Stock
Portsmouth Steel Corp
..Common
Towmotor

Pfd. and Common

Clinton Industries Inc
———.Capital Stock
Forest City Manufacturing Co
Common

Preferred

Dewey & Almy Chemical Co

Chadbourn Hosiery Mills, Inc

Common

Preferred

Winslow Clay Products..—Preferred and Common

at $4 per
Unsubscribed shares to be offered to
public by
underwriters at not less than
$4.75 nor more than $10.
Proceeds—To repay unsecured bank
loans; to pay first
instalment on purchase of plant from
RFC; balance to
be added to
working capital.

stock.

July 8, 1946

Common

Baltimore & Ohio RR._!

Common

Preferred and CI. B Common
Palymer Industries Inc
Preferred and Common
U. S. Hoffman
Machinery Corp
Preferred

held

May 31 (letter of notification) 500,000 shares of

July 7, 1946
All American Aviation Inc

Pfd. and Com.

Peabody Coal Co

Exchange and

Preferred
...Common

Class B Common

Western Frozen Foods Co

for

North American Can Corp.——-

Rudy Furnace Co

Preferred and Common

States Power Co
One World Book Club Inc.—

share.

Mines

Common

Mountain

new

Common

•.—Common

---------

Common

Monogram Pictures Corp

Manufacturing Co., Los Angeles

Arkansas Western Gas Co
Coro Inc.

■

...Common

July 5, 1946

Common

Common
..Common

Segal Lock & Hardware Co.———

Capital Stock

Jack & Heintz Precision Ind. Inc
Kurz-Kasch Inc

May 17 filed 370,000 shares of common stock.
Under¬
writers—Sutro & Co., and G. Brashears & Co.
Offer¬
ing—To be offered
initially to shareholders in ratio of
two

July 3, 1946

25, 1946

Securities, Inc

California Oregon Power Co
City Stores Co

share for share basis,

.Common

Preferred and Common

Allied Stores Corp.
;'Murphy (G. C.) Co

Wisconsin Electric Power Co-Bonds and
Preferred

for $6 preferred and $3,313
for $5.50 preferred.
Second preferred shares are
being
offered for subscription to common
stockholders of rec¬
ord

Florida Public Utiliies Co.—

10:30

preferred stock and 101,056 shares
($50 par) 4% cumula¬
tive second
preferred stock. Underwriters—Drexel &
Co., and Harriman Ripley & Co., Inc.
Offering—Pre| ferred stock is being offered in exchange to holders of
$6
cumulative preferred
stock, series A, and $5.50 cumulaon a

Preferred
—Capital Stock

Container Corp. of America—

Iowa Public Service Co.—

May 21 filed 70,000 shares ($100
par) 4%% cumulative

i tive preferred stock, series B,
J plus a cash payment of $3,438

July 2, 1946
American Yarn & Processing Co

24, 1946

Juhe

Corp., Chillicothe, Ohio

1946

County Coal Corp
*
.Common
General Builders Supply Co._-Preferred and
Com.

wholly owned
subsidiary, to Reconstruction Finance Corp.
-J.VMead

—--

—

Boone

ceeds—Net proceeds will be used to
pay entire indebt¬
edness of Maryland

Holding Co., Inc.,

Portland Gas & Coke Co.—..Bonds
Reeves Brothers Inc.
....—....—.......Common
Steep Rock Iron Mines Ltd
—Capital Stock
Thalhimer Bros. Inc.
*—Preferred

Common

June

stockholders in ratio of one
share, of, cumulative pre?ferred for each 3% shares
of common held and one
held.

21,

Keynote Recordings, Inc

^.preferred stock.
Underwriters—Merrill Lynch, Pierce,
Fenner & Beane, New York.
Offering-^Stocks initially
will be offered for
subscription to present common

share of

July 1, 1946
Capital Stock

F. R. Corporation

Denman Tire & Rubber Co.—Preferred and Com.

($10 par) cumulative prior
,preferred stock and 479,880 shares
($5 par) convertible

common

1946

Benguet Consolidated Mining Co

gold

Maryland Casualty Co., Baltimore

|May 29 filed 239,940

'.<■ V •!v.

New Issue Calendar

—

3389
r-s=

Mada Yellowknife Gold

THE COMMERCIAL & FINANCIAL
CHRONICLE

offering price, $100 a
Underwriter, William E. Stahl, Mountain View,

Calif. Net proceeds will be used to
purchase the physical
assets of

O-My Food Products Co., a co-partnership, for

$53,000; for setting

up a branch

factory and operating

capital.
Ohio Edison Co.,
Akron, Ohio
May 29 filed 204,153 shares of common stock (par
$8)„

The stock will be sold at
competitive
of underwriters by

bidding with

names

amendment/ Probable bidders in¬

clude First Boston

Corp.; Glore, Forgan & Co.; Whlt4

(Continued

on page

§390)

;

(Continued from page 3389)
,
:,t
Weld & Co.-Shields & Co. (jointly); Morgan' Stanley &
Co., and Stone & Webster Securities Corp. Proceeds—
Net proceeds will be used to finance construction of

property additions.

Bids Invited—Bidsn for the purchase

of the stock will be

received at office of

& Southern

Commonwealth
Noon EDST,

Corp., 20 Pine Street, up to 12

June 24.

New York (6/25)

notification) 500 shares of preferred
stock (par $100).
Price, $100 per share. For general
corporate purposes, including purchase of books and
copyrights, distribution, advertising, etc.
Not under¬

written.

:•••

Oneita Knitting

! June

Mills, Utica, N. Y.

filed 1,025,000 shares of common, stock (par $1).
Underwriter—Otis & Co.
Offering—Shares will be of*
$10 a share. Kaiser-Frazer will

June 7

purchase 200,000 additional shares and Graham-Paige
will purchase 100,000 additional shares at $10 a share.
Proceeds—Purchase .he Portsmouth works and to pro¬
vide funds for general corporate purposes.

Underwriter—Mohawk Valley Investing Co., Inc.

Stockholders will vote

Offering-T-Price, $110 per share.

various changes in capital struc¬
ture.
Proceeds—To pay appraised value of the preferred
stock, as to which stockholders shall file notice of dissent
and demand payment for their shares.

June 24 on approving

Ohio (7/2)

Prestole Corp., Toledo,
filed

June

6
,£Seal-Peel, Inc.; Detroit, Mich.
June«4tv-(tetter of notification) 200,000 shares of common/f>fbck ($1 par). Offering price, $1 a share. 'Under-

writ^—A. H. Vogel & Co. Proceeds—For construction
costs,-rto discharge tend contract on premises being pur¬
chased and used by the company, for purchase of addi¬
tional machinery and working capital.

($10 par) 5% cumulative
60,000 shares of common

22,500 share?

Kraus,
Price
by amendment.
Proceeds—Of estimated ($477,000) net
proceeds, company will use $163,192 as balance of pur¬
chase price of assets and business of Prestole Division
(par $1).
Underwriters—Ball, Burge &
Cleveland, and Stoetzer, Faulkner & Co., Detroit.

stock

Co.; $50,000 for inventories" of Pres¬

tole division; $63,400
as addi ional cost of plant at
Toledo, Ohio, and remaining proceeds for purchase and
installation of additional machinery and equipment and
working capital. Business—Manufacture of metal fasten¬

ing devices.

(7/8)

Radio-Keith-Orpheum Corp., New York

•

670,000 shares of common stock (par $1).
Underwriters-7-Lehman Brothers and Goldman, Sachs &
Co.
Price—By.
amendment.
Proceeds—Atlas Corp.,

(7/3)

filed

738,950 shares of common (par
derwriters—Floyd D. Cerf & Co.
Offering—Holders of
common stock, 7% preferred stock and $2.50 cumulative
March^SO

convertible preferred stock and

of Detroit Harvester

1,977 shares of preferred

11 (letter of notification)

stock.

fered 10 the public at

•

18 (letter of

June

(6/26)

Segal Lock & Hardware Co., Inc., N. Y.

pne World Book Club, Inc.,

•

Portsmouth (Ohio).. $teel Corp, •

Thursday; June 20, 1946

FINANCIAL CHRONICLE

THE COMMERCIAL &

3390

preferred stock of record June 13 are given right to
subscribe at $4 per share to new common shares at a
rate of one share of common for each two shares of any
stock held.
Rights expire at 3 p.m. July 2. Proceeds—
of

Purchase

machinery

additional

and

equipment

for

modernization of present facilities, etc. 1 For details see
issue of

April 4.

Capitol Mining Co.

Silver

; f

May 22 (letter of notification) 600,000 shares of commop
stock.
Offering—Price 20 cents a share. Underwriters
—Standard Securities Corp., Spokane, Wash. Proceeds—

exploration development work in mining property.

For

June 18 filed

Equipment Co., Inc., Reno, Nev.

Pacific Safety

May 31 (letter of notification) 10,000 shares of common
stock. Offering price, $10 a share. For the manufacture

and fire detection devices. Underwriting, through
salesmen who will receive a maximum of $2.50 a share.

of gas

Manufacturing Co.

(N. J.)

Paulsboro

6% cumulative preferred
stock purchase warrants and
31,000 shares of common, issuable upon the exercise of
the warrants.
Underwriters—Butcher & Sherrerd, Phil¬
adelphia. Offering—1,886 shares of 6% cumulative pre¬
ferred are offered in exchange (one new share for 10
old shares) for shares of 4% preference stock ($10 par),
together with all dividends accrued thereon. Exchange
$offer is conditioned on purchase of remaining 8,000
shares of 6% cumulative preferred and of the 31,000
common stock purchase warrants by underwriter.
Pro¬
filed 9,886

March

(par $100); 31,000 common

■

ceeds—Purchase

a plant and nec¬
For details see issue

construction of

machinery and equipment.

essary

of 1,329,020

owner

(approxi¬

shares of common of RKO

shares of the
total offering and will receive
proceeds from these
shares. The balance of 20,000 shares are to be purchased
from the company by underwriters through the acqui¬
sition and exercise of option rights granted two company
officials. The company will receive $160,000 from the
exercise of the option rights which will be added to
working capital. Business—Holding company. Its sub¬
sidiaries are engaged in motion picture production and

mately 35%) on May 31, is selling 650,000

other

enterprises.

Radio & Television*

•

Inc., New York

Underwriter—Glenn LeRoy
Use of proceeds not stated, [jf

Offering price, 35c a share.

Fish, Spokane, Wash.
•

Solar Manufacturing
14

June

Corp., New York

phonograph combinations;
additional working capital.

(7/15-1.9) ■

80,000 shares of $1.12% cumulative con¬

filed

(par $20).
Under¬
Price by amendment.
Proceeds—Net proceeds will be applied for the redemp^tion of outstanding series A convertible preferred stock
which are not converted into common stock.
Such pro¬
ceeds also will be used for additional manufacturing
facilities in the amount of $600,000; for additional inven¬
preferred slock, series A

vertible

writers—Van Alstyne, Noel & Co.

Business—Manufacture

capital.

for additional working
of fixed condensers

South American Gold & Platinum Co., New

receiving sets and radio and

stock.

Exchange through Lewisohn & Co., at market
•

880,561 V2 shares of 4%% prior preferred
$20); 176,112 shares of class B common stock
(par $5) and 880,561 warrants to purchase class B com¬

June

filed

stock (par

Underwriters—There

shares.

mon

writers.

Offering—The 4J/2%

will

1,753 shares of stock.
and were previously
Boston Stock Exchange. Of¬

purchased by company on
fering price, at market. No underwriting.

under¬

To increase

market conditions.

upon

Southern New England
Reeves Brothers Inc.,

filed

June

80,061

New York (7/1)

(50c par)

common

stock.

Offering—Company is
offering to exchange 29% shares of 50c par common
stock for each of the 1,983 shares of common of Grace'
Cotton Mills Co.. Rutherfordton, N. CM not now owned

share of class B common

It also is offering to exchange 88/100ths of a
share of common for each of the 24,500 shares of com¬
mon stock
of Warrior Duck Mills, Spartanburg, S. C.,

by i..

not

now

expire July

$23,500,000 first mortgage bonds, due
•1976, and 101,000 shares of cumulative preferred stock,
series C, par $100; Securities Will be "sold at competitive
bidding, and interest and dividend rates will be filed
by amendment, Underwriters—By amendment, proba¬
ble bidders include Halseyv Stuart & Co., Inc. (bonds
only); Smith, Barney & Co. (preferred only); Kuhn,
Loeb & Co., and Lehman Brothers (jointly).
Offering
—Prices to public by amendment.
For details see issue

[ of March 28.

Blair &

ment.

Del.

For derails

see

Rome

(6/25)

Cable Corp.

share of

preferred and two shares of common at $5.02
unit. Not underwritten. Proceeds for working capi¬
tal and other corporate purposes.

construction program

tories.

for sub¬
Vs.th of;
will be,

owning and operating,
the am
balance;
as
working capital. Business—Operation of retail and(
mail order business for the sale of clothing and house

the

capital stock of a corporation

large home furnishing store; $750,000 to pay
nual instalment on its 21/2% serial notes, and the
a

hold

goods.

Stratford Pen Corp.
filed

(7/8-12)

100,000 shares of common

stock (par $1)

Underwriters—First Colony Corp. Proceeds—To selling
stockholders.
Offering—Price to public, $914 per share

(7/8)

and to carry larger

Underwriters—Glore, Forgan & Co.,

$2).

Offering—The shares will be offered

public. Price—By amendment. Proceeds.
—Net proceeds will be used as follows: $3,050,000 to payj
off short-term bank loans; $1,400,000 to acquire all of^

June 5

scription to common stockholders at rate of one share
of preferred for each three shares
of common held.
Proceeds—Net proceeds will be used toward completion

one

(par

offered to the

May 29 filed 63,276 shares of cumulative convertible
preferred stock (par $30). Underwriters—Carl M. Loeb,
Rhoades & Co. Offering—Shares will be offered for sub¬

issue of May 16.

Offering—To be offered in units of

(N. Y.)

advances'

scription to common stockholders at the rate of
a share for each share held. Unsubscribed shares

general corporate purposes including improvemen.

Jan.

Polymer Industries Inc., Astoria, N. Y.

(par 1 cent).

working

of road building equipment.

-June 18 (letter of notification) 22,800 shares of 6% pre¬
ferred stock (par $5) and 50,000 shares of common stock
v

Proceeds-

(let er of notificat on) 8,000 shares (no par)
stock, Price—$25 a share.
No underwriting.

common

For

1, 1964.
Underwriters—
Co., Inc. Offering—Price to public by amend¬
Proceeds—Payment of promissory notes aggre¬

gating $8,000,000.
#

due

amendment.

Roadgrader Gauge Corp., Wilmington,

•

Co., Hoboken, N. J.

debentures

the company will be added to

capital.

May 9 filed a $7,000,000 15-year 4% debentures due
April 1, 1961, and $1,242,300 20-year 5%% cumulative
income

Reported
Offering—Terms

Net proceeds ;o

June

Pittston

Underwriters—Names by
Allen & Co., probable under¬

stockholders.

amendment.
writer.

'-'.r-v-'

300,000

Proceeds—To repay in full
Telephone and Telegraph Co.

Spiegel, Inc., Chicago (7/8)
of 329,580 shares of common

•

Chicago.

May 4 filed 400,000 shares of common stock (no par),
of which 100,000 shares are being sold by company and

June 19 filed a maximum

owned by it.

Reynolds Fen Co., Chicago

filed

16.

from American

stock

Pennsylvania Electric £o., Johnstown, Pa«

Telephone Co.

100,000 shares of capital stock (par $100). |
Underwriters—No underwriting.
Offering—Shares will,
be offered for subscription at $120 a share to stock¬
holders of record June 25, in the ratio of one share for
each four shares then held.
Subscription warrants will
June 6 filed

Underwriters—No underwri.ing.

prices: up to June 30, 1947, $17.50 a
share; to June 30, 1948, $20 a share; to June 30, 1949,
$22.50 a share. After July 1, 1949, the warrants will be
void.
The common stoqk being registered will be re¬
served for issuance upon the exercise of the warrants.

(approxi-|

price to the
public exceed $100,000.
Proceeds will go to General
Development Co., owner of the stock.
Offering is to]
be made any time within next three months, depending |

cash resources.

prior preferred will be

the following

March

mately $7), but in no event shall ihe total

These shares issued and outstanding

•

to subscribe for one-fifth of a

Machine Co., Woburn, Mass.

(letter of notification)

June

[offered for exchange to holders of company's 6% pre¬
ferred on the basis of 6% shares of prior preferred for
each 6% preferred plus dividend arrears to May 1, 1946.
With each share of prior preferred exchanged for 6%
preferred, a warant will be issued entitling the holder
at

Reece Folding

York

(letter of notification) 13,000 shares of common
Stock will be offered on the New York Stock

June 4

(6/25)

Peabody Coal Co., Chicago

used in connection with electrical currents.

balance,

of April 4.

Wallace, Idaho

(letter of notification) 400,000 shares of stock.

tory amounting to $400,000, and

(letter of notification) 99,000 shares of capital
stock (par 10c). Underwriters—Kobbe, Gearhart & Co.,
Inc. Price—$3 per share. Proceeds—$52,555 to acquire
trademark "Brunswick" for use on radio and television
14

June

Silverton Mines, Inc.,

•

June

Steep Rock Iron
•

viarch 27 filed
r

500,000 shares of capital

nderwriters—Otis & Co.

stock (par $1),

Offering—Price to public by

added to
and will be available for general,,
oorate.purposes. For details see issue of April 4. | 1

intendment.

inven¬

Mines Ltd., Ont., Can.

(7/1-5)

general

Proceeds—Net proceeds will be

funds

per

Portland Gas & Coke Co., Portland, Ore.
June

;

(7/5)
June 14 filed 100,000 shares of common stock (par $1).
Underwriters—Keane & Co., Detroit,
Price. $3 a share.
Proceeds—Ne, proceeds, estimated at $244,770, will be
used to pay off bank loans of approximately $230,000
and to increase working capital. Business—Manufacture
•

(7/1)

filed

$10,000,000 first mortgage bonds; series
due 1976.
Underwriters—To be decided by competitive
bidding.
Probable bidders include Blyth & Co., Inc.;
Smith* Barney & Co.; Halsey, Stuart & Co., Inc.; The
First Bos on Corp., and Kidder, Peabody & Co.
Offer-

of condensers for

ing

in£—To be offered to public.
Price—To be decided by
competitive bidding.
Proceeds—To retire long-term

%,tdebt, etc.

-v;

Rudy Furnace Co., Opwagiac, Mich.

devices,

. •,

Sardik Food
•

Portland

June

(Ore.)

Transit Co.

filed $1,250,000 4% convertible debentures due
1966, and 200,000 shares of common stock (par
Underwriters—First California Co. Proceeds—To
18

complete payment of purchase price for the capital stock
of Portland Traction Co. and the properties of the Inter-

urban Railway

Division of Portland Electric Power Co.,
working capital, etc. Offering prices by amendment.

'it

f?il, P.

«...

Products Corp., N?w York (7/15)

May 29 filed 175,000 shares of capital stock (no par)".
Underwriter—George F/ Breen. New York. Offering—

June 1,

$1).

eiectrical refrigerators and other cool¬
manufacture of air-conditioning
'?' \v

devices and the

to public at $16 a share with* underwriters receiving £ commission of;$2 a share. Of the
total being offered company is telling 155 000 shares and
the remaining 20.000 shares are being sold bv two stockholders.
Proceeds—Working capital* purchase equip¬
ment and plani, etc.
For details see issue of May 30.
Stock will be offered

Sterling Electric Motors,

Inc., Los Angeles

$500,000 15-year 5% sinking fund debem
teres, due 1961, and 29,709 shares common s.ock (pai
$1)
Underwriters—Maxwell, Marshall & Co. Offering
—Debentures will be sold to public at $1,000 each and
common at $3.50 a share.
Each $1,000 of debentures will;
have attached a detachable stock purchase warrant foi
May 27 filed

purchase of 100 common shares. In addition, four stock¬
holders of he company will sell to the principal under¬
writer warrants for 19,591 common shares at 7 cents i
warrant.
Proceeds—To finance construction of addi-;
tional factory building; purchase equipment and machine
tools: retire current bank loans and working capital, etc.

■'

•

TJalhimer Brothers, Inc., Richmond, Va.. (7/1)
JuneilO filed 25,000 sHares cumidative preferred $tocK
Underwriter—Kidder, Peabody & Co.1 Oh
fering—Pri ce by amendment. Proceeds—General cpr
'

r>;>r

porate purposes.

Volume

Number

163

4500

the commercial &

■*£x

financial chronicle
3391

•fi
,-l«

vU'iTinteiy C!cl!?es, Inc.,. New York
"
,,r.L.
"'&*
1

'$>'

A June

•

*•

being

•

■

•

V-

—

stock

crmmon

Vacuum Concrete

(6/24-28W*..

•

(par *$10).

stockholders.
Underwriters—The
Offering—Price by amendment.

sold by
Boston
Corp.

Firs.

'■

SO 0007 shares "bf

4 Tied

'§ Stock

"Forriragton Manufacturing Co., Torrington, Conn.

June

(letter
stock

fcommon

holders at the

9,700 shares

notification)

be offered

present

of $25

par

stock¬

common

rate of one-half share for each share held.

ipDffering price, $27.50 a share. No underwriting. For
^working capital and possibly to the reduction of serial
•..loans
-

Towir.otor Corp.,

Cleveland, Ohio

(6/26)

common stock (par $1),
and Hay den, Miller & Co.
be sold to the public by
will be sold by the company

■hden\ri]teiis^^hieids & Co.,
^ffcrin|(^l,i5,C()0 shares will
underwriters

and

15,CC0

ii/ cinpicyces, including certain officers arid directors,
the

'Of

sna.es

to the

be sold

public, 50,000

are

being

resold by the company and 125,000 shares by four stock¬
holders.
Proceeds—Net proceeds for improvements to
plant and machinery, to retire certain promissory no.es,
and
S : f';

stock

Winslow Clay
Products, Philadelphia (6 25)
18 (letter of
notification) 500 "shares of 6%
preferred stock (par $100) and 2,500 shares of common
stock (no par). Offering—To be
offered in units of 1

common

June

preferred share arid 5 common shares at $100
per unit.
Proceeds—Additional machinery, supplies,
repairs and
working capital. Not underwritten.
Business—Company
has acquired the brick
'plant and; clay; pits formerly
operated by Hydraulic Press Brick
Co., at Winslow
junction, N. J. •'

retiring remaining
outstanding stock and liquidation of its liabilities; to
expand and develop patents, and for working capital.
Van Norman Co.,
Springfield, Mass. (6/26-27)
May 31 filed 120,000 shares common stocks (par
$2.50).
Underwriters—Paine, Webber, Jackson & Curtis, Boston.

Wisconsin Electric Power
C;o„ Milwaukee (6/24)]
May 22 filed $50,000,000 first mortgage bonds, due
1976,,

Offering—Stock will be offered to the public. Price
by
Proceeds—Net proceeds will be applied to
the reimbursement of its funds incurred in the
recent

and 260,000 shares
($100 par) cumulative preferred stock.
Probable bidders include The First Boston
Corp.; Dillon,
Read & Co.; Blyth &
Co., Inc.; Halsey, Stuart & Co.,

acquisition at stock of Morse Twist Drill and Machine
Co.

The

balance will be

used

reduce

bank

loan.

Inc.

(bonds); Wisconsin Co. (stock); Mellon Securities
Corp. Bids Invited—Company is invi.ing bids for pur¬
chase iof bonds arid maximum of 260,000' shares of
pre-'
ferred stock; interest rate and dividend rate to be
speci¬
fied in bids,
Bids will be received by
company at
Room 1901, 60
Broadway, New York, up to noon June 24,

Verney Corp., Boston, Mass.
May 29 filed 150,000 shares of common stock (par $2.50).
Underwriters—Names by amendment.
Offering—Price
by amendment.
Of shares being offered an
unspecified
by selling stockholders and remaining

amount is owned

to be issued to the several
underwriters upon

are

Wisconsin Power & Light Co.,
Madison, Wis.
May 21 filed 550,000 shares ($10 par) common slock to
be
sold
at
competitive bidding.
Underwriters—By
amendment.
Probable bidders include Merrill
Lynch,
Pierce, Fenner & Beane; White, Weld & Co.; Glore,
Forgan & Co., and Harriman Ripley & Co.
(jointly);
The Wisconsin Co., and Dillon, Read & Co. ProceedsPart of the shares are to be sold by"
Middle West Corp,',
top! holding company of the System/ arid part by pref¬
erence
stockholders of North West Utilities Co., parent
of Wisconsin, who elect to sell
such shares of Wisconsin
common which Will be distributed to
them upon the
dissolution of North West Utilises Co/

conversion of

Traders

Post,

Inc., Greenville, Miss.

lil (le ter of notification) 2,000 shares of 5%
ferred stock and 9.000 shares of common (no par).

pre¬

stock

details

see

a share of prefcrped- and $1 a share of
Underwriter-—Stock" will bd offered by Henry

| T. £rosby & Co.. Greenville, Mrss.
■•'.

For paying off real

indebtedness.

estate

fil~d

stock

100.000

warran.s

purchase 40,000 shares
Drevers, New

per

Price, $3.75

share.

Purpose—Working

tal.

capi¬

Union

STo be offered publicly at market. 'Proceeds—For invest¬
ment. Business—Investment fund.

Virginia Red Lake Mines, Ltd.
June 24

filed 220,000 shares of capital stock
(par $1—
Underwriters—Willis E. Burnside &

Canadian).

Co.,
Offering—Offering price to public 28 cents

New York.

Uni ed

and

Underwriter—Eric &

preferred stock
ncterwriiers—Lord, Abbett & Co., Inc. Offering—

(par $1)

York.

Union Trustaed Funds Inc., New York
18

Viewtone Television & Radio
Corp., New York
(letter of notifica ion) 79,000 shares of common

June 10

of common- stock.

••

June
|und.

owned

Of¬

fering price. $50
common.

company's 5% cumulative convervible pre¬
by the selling stockholders.
For
issue of May 30.

ferred

#;%lay

;

notification)' 25,000 shares of

$1).

Underwriter—Eastman, Dillon & Co.
will act as agen s.
Price to public, $11 per share.
Proceeds—To purchase additional
equipment; to acquire
assets of Vacuum
Concrete, Inc., by

working capital.

'
1

W* :■
? *•

(par

amendment.

f ailed *196,000 shares of
-I

May 28 (letter of

Corp., Philadelphia

Cigar Wleian Stores €orpv, N. Y.

United States funds.

May 14 filed 50.000 shares of convertible preferred stock.
Cumula.ive uiyidend. $3.50 per annum (par $100). Under^
f writers--A ten & Co
Ottering—frior preie. red stock-

For details

see

Wyandotte jHotel Co., lnc.,

issue of Aug. 2,1945.

holder? will be given privilege of

exchanging such shares
oi new convertible preferred stock at rate of
shaies of or or pretcrred lor one share of convertibie preterit'*, with a cash adjustment.
Convertible

for shares

;

j four
t

| prefened
§

sold to
share.

ail?

issue of

?ev

May

June 10

(le ter

notification)

tbonds, of which $75,000
^•present mort; age bonds.
Price, $1,000 and
for
;

construction

$500

debenture

Not underwritten.

Offering—

Proceeds will

unit.

building and to

new

$245,000 5%

used

purchase

Warehouse equipment.

Inc.,

Watsonville,

Kans.

new

share.

Proceeds—Debt payment,

May 14 filed $1,000,000 inves ment trust fund certificates,

in multiples of $10.

Offering—

Proceeds—For investment.

At market.
h

up.

United

Stages

York

(6/25)

Ho>(man

Machinery Corp.,

New

June 5 filed 30.000 share? of cumulative preferred stock

Underwriter—Hayden, Stone & Co.
Price
by amendment.
Proceeds—Capital expendiUres, pur¬
chase of additional equipment and for general funds.
(par $100).

Universal
4

Cams

aft

Co.,

IVTuokegon

7 000 shares of

common

stock (no par).

Offering p ice, $10 a share. No underr
writing. - For purchase of machinery and equipment and
to provide working capital.

filed

series A

155,145 shares of $4.50 cumul. preferred
(no par), convertible on or before Dec.

31. 1953). and 310,290 shares of

offered to. the public through a carnpaign di¬
by the Chamber of Commerce of Kansas City,
Offering—The securities will be offered to the

common

stock

site

record

June

mon

held

$100

one

per

($1 par).

share for each 16 shares of

share.

Certain stockholders

constructing,

furnishing

Yank Yellowknife Gold
Feb.

and

rooms.

the total cost will be $1,600,000.

rights to subscribe for the series A

preferred at rate of

and

modern ho>el of riotless than 230

Underwriters—Kuhn, Loeb & Co., and E. H. Rollins &
Sons, Inc. Offering—Company is offering to stockholders

- •

equipping

It is estimated

Mines, Ltd-, Tor., Ont.

13 filed

600,000 shares of common stock (par $1).
Underwriters—J. J. Carrick, Ltd.,
Toronto" Canada- Of¬
fering—Price to public 25 cents per share, United States

com¬

will

rights with respect to 46,773 shares of
series A preferred, which together with shares not
subscribed for by other stock holders will be sold to

funds.

For details see issue of Feb. 21.

York

underwriters. Company is also offering rights to stock¬
holders of record June 12 to subscribe for
310,290 shares

Will be sold at
include Halsey,

eight
expire June 26.
Unsubscribed common shares will
be 'purchased
by
Willys Real Estate Realization Corp. Similar rights with
respect to the preferred and common stock are being
offered

holders

outs

anding

options.

amendment.

—Refunding.

will

sold

also

not

than

Interest rate by
Offering—Price by amendment.
Proceeds
For details see issue of. May 9.

(par

registered 4O,0QO abates

$l)j

40,000 yyarrrints to purchase crimmpn stpek at $8,25 per
share' prior to Feb/
195.1, 2Q,0Q0 were issue to ^stock¬
holders 6n recapitaljzatiph and 20J)00 are
be,ing sold te
undefwriter's St.iQ cents per warrant share. Offering
postponed indefinitely. For details see issue of Feb. 7.

people,

f^pceeds for purchase Qf'addUbnal equipment necessary
for expansion of carrying cargo and
freight by air.
r" ;

Security Offerings

(NOT YET IN
•

1976.

Probable bidder j

ofcPmriipn foi; Issuance upon
exercise of warrants.
Under writers^-Vari Alstyne, Noel
& Co;
Offering—jprice tp public; $8£5 per share. Of

Philadelphia t

among

competitive bidding.
Stuart &; Co., Inc.

Jan. 29 filed 100,000 shares of common stock

June 5 (letter of notification) 150,000 shares of 5% noncumulative preferred stock (par $1).
Not underwritten.

Stock

County Gas Co.

Young Radiator Co., Racine, Wis,

Proceeds-

Net proceeds will be added to the
general funds.

Winged Cargo, Inc.,

(Pa.)

May 8 filed $1,700,000 first mortgage bonds, due

of common stock at
rate of one new share for each
shares he'd at $20 per share. All
rights

Broisiiective

if*:

Kan*

public in units consisting of one $200 debenture and
shares of coirimon at $210 a unit. Proceeds-^PrOT
ceeds, together with a loan, will be used for
purchasing

Willys-Overland Motors, Inc., Toledo (6/27-28)

Heights,

Mich.

June 10.(letter of notification)

Kan$as City,

;

the

United Investors Corp., Denton, Texas

in units of $10 and

p/A

two

not exercise their

rected

plant and equipment and working capital.

stock,

reserved for exchange for

are

Co.,

Offering—Price, $10

Co., Brooklyn, N. Y.

ocero

Foods

(6/25)

Will

May
United G

Frozen

-V- (7/11)

June 6 100,000 shares of 5% cumulative convertible
($10
par) preferred stock.
Underwriter—First California Co.

and

unoerv. iiyis

Fur

Calif.

aider the exchange offer will be
offered to oubiic at $100 per

issued

r.oi

Western

■

June 10 filed $1,000,000 of 30-year V4% income deb en*
tures, due 1976,1 and 10,000 shares common J stock • (np
par).
Underwriters—No underwriting.
The securities

>v*

REGISTRATION)

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

^ |A Air Services, Inc., New York

American Bemberg Corp., New York

;April I -company -was.
shares of

common

stock

iniles of New York City.

located

within

Principal "business

student training and charter
O;;

Cantor

Co.

Price about $? per share

headquarters will

B. G

through

New York, as underwriter.

Company's

of 150,000

•

June 25 stockholders will vote

stock

proposal that present
7% preferred stock be exchanged for new 4^% issue.
Alternative plan Would be the refunding of the issue

through sale of other securities:

& Beane

American Bosch Corp.

sion to offer

thri

First California Company

•

••

-•'

'v'

Offices
Serw fjalifornia and Nevada

BUFFALO

V PHILADELPHIA

CHICAGO

PITTSBURGH

CLFVEpANO
ST

*
'J

LOUIS

Head Office: San Francisco

new

issue of 1,000.000 shares of stock to

Estimated p^t proceeds f $14,000,000) would

made

through Dillon, Read & Co. Inc., with

the ABC

1,006,000

shares at $14

share.

pro-

S4le of the stock

public by Dillon; Read & Co., will he
V

April 10;

■

BOSTON

American Gas & Power Co,
;

rxl

share.

Our Sixteen

•

:
'

(

to the

J
*

prihlip>

issue of

INCORPORATED

Co.

NEW YORK Ir
.

viding for the purchase from^rit of the entire proposed

Underwriters and Distributors

INC.

H "

whom arrangements have been made by

Corporate Securities

Blair *>

be devoted to
financing present and, proposed facilities
of compariy; The jpubUc* offering of stock,: if. approved,
will

;

include

(jointly),
jiyncb;^^^Fierce, Feriner

Broadcasting Go.^ (1^ YQrk
May 23 pompany^ filed.?CG lappligatiori for p^rmis*

United States Government,
and

J r

bidders

American

State, Municipal

Probable

^ and Dehman: Brothers

(jointly).

-i

r';-

April 16 reported that Alien Property Custodian may
♦hortly ask for bids 0) £33.()0(l; shay^a!.(TTi24%) pf the

service

corporation.

andTilyth &Cq.» Jn?., aip^

eight

will

the

Glorev Forgan

company

;

at $15 a

(name' to be changed to Minneapolis

Cras Co^Ji tinder modified plan approved by SEC; reserves
Tight to mak^ public offering of not in excess of 874,078

Shares pf

new common

stock.

Probable bidders include

White, Weld & Co., W. C.tLangley;&:dO., t>tis &
(Continued

on page

3392)

Co. \

THE COMMERCIAL &

Century Manufacturing & Instrument Co.

(Continued from page 3391)
Arkansas power A Light C<L, Little Rock, Ark.
March 30 reported company planned to issue 290,000
shares

stock

$12.50) and $5,000,000 in
of paying current promis¬
sory notes and finance expansion program.
Probable
bidders include Dillon, Read & Co. Inc.; The First Bos¬
ton Corp.,andBlyth & Co., Inc.
common

promissory notes, for

Armour A Co.,
.

(par

purpose

Chicago

May 29 reported Estes, Snyder & Co./ may underwrite
offering of common stock following merger of Century
and Continental
•

are prospects of a re^apitalfthe end of 1946, maybe even
Summer. Traditional underwriters

reported that there
:

...

zation by company before

before, the

end

Kuhn,Loeb& Co., The First Boston Corp. and Harri;/*nan/
■ ■■■'//
fire

J-

Philadelphia

July 16 stockholders will vote

Increasing common

"stock by 300,000 shares, the new stock to be offered
stockholders at $10 per share.
Proceeds for expansion

Atlantic Refining Co.,

Philadelphia

$50,000,000 in aggregate. The
of the plan, it was said, is to place the company
excess

purpose
In a position to fund bank loans, add to working capital
and to provide funds for capital expenditures. Probable
underwriters include

April

stockholders

and create

voted

new

to split common stock
preferred isue of 300,000 (par

$10) of which 150,000 shares would be issued and sold
to finance purchase of constituent
company, improve¬
ments, etc. Blyth & Co., Inc., probable underwriters.
Baltimore & Ohio RR.

Company has invited bids on June 26 for the purchase
of $4,060,000 of equipment trust certificates
maturing in
to

one

ten years.

The issue will

cover

of the cost of 900 steel box

B0%

cars

and

900

Evans

Probable bidders include Halsey, Stu¬
art & Co. Inc.; Harris, Hall & Co.
(Inc.) and Salomon
Bros. & Hutzler.

Bangor & Aroostook RR., Bangor; Me.
AprH 16 stockholders authorized new mortgage. Com¬
pany contemplates refinancing one-third of outstanding
funded debt (Dec. 31, 1945, $12,665,000)
through sale of
equal amount of bonds under

new mortgage, through
competitive bidding.
Probable bidders include Harri¬
man, Ripley & Co., Inc.; Lee Higginson
Corp., and
Halsey, Stuart & Co. Inc.
>

Bangor Hydro-Electric Co.
11

stockholders

approved

shares of 6% preferred stock
4% preferred.
»;•'

Beam

(James B.)

plans to retire 21,799
through exchange for new

the present outstanding 23,141 shares of 6%
preferred,
giving holders thereof the right to exchange their shares
f6r new 4% preferred share for share/
/'///&■'
/
Bridgeport (Conn.) Brass Co.
April 23 stockholders voted to issue an additional
common

stock

when

and

Brown-Forman Distillers Corp.,

July 23 stockholders will vote

456,000

Louisville, Ky.

plan which calls for
300,000 shares to 600,000
100% stock dividend will be de¬
on

increase in common stock from

(par $1), after which a
Directors also seek approval of an additional
issue of 14,750 shares of
4% preferred stock for which
the present $5 preferred can be
exchanged, on a share-'

clared.

for-share basis.

stockholders voted replacement of the author¬
ized but unissued
50,000 shares ($50 par) $2.25 preferred
stock with an
equal number of new no-par $2 preferred

fw?tated of
value of $50- Initially
that 35,000 shares
the

Company plans to issue

latter

stock

it is planned

will

issued.

additional 175,000 shares ($1

Sa^nn1^011 stc)ck of which there
797,600 shares.

are now outstanding
Proceeds of the preferred and common

stock sales are to be used
to repay
Joan and to augment
working capital.

$3,000,000 bank

Southwest

new company,

would be sold at competitive

bidding to provide funds,

outstanding

American.
;

Possible

not

preferred

otherwise
stocks

bidders:

Lehman Brothers-Lazard Freres

Glore,

supplied, to
Central/

Forgan

and

Co.;

/-*

v*\

tr%

first

mortgage

3%s, series D,

At ihe ICC hearings in April on the merger

Inc.

Corp. (jointly).

Cities

Services

Power &

Electric Auto-Lite Co.
June 12 it

was staled that with divestment by Federal
Light & Traction Co, of its four New Mexico properties
and merger of same into an intrastate company removed

from SEC

jurisdiction, it is anticipated ihat the shares
new company acquired by Cities Service,
through ownership of Federal, will be sold through
competitive bidding.
Probable bidders: Blyth & Co.,
Inc.; First Boston Corp.; Otis & Co.; Harriman Ripley

of stock of the

& Co.

•

tional shares of
for

common

each four held.

stock in the ratio of

The

financing, for the

one

purpose

retiring company's V-Loan and current bank loans, also

will

provide, in part, for company^ postwar expansion.
programi and will replenish working capital already used /
for such purposes.

Company is negotiating with a group;*
by Lehman Brothers and Smith, ;

of underwriters headed

Barney & Co.
Electric Boat Co.
June

11, at annual meeting, stockholders voted
creating new preferred issue of 200,000 shares, of which
173,931 shares will be issued to common stockholders;
as
stock dividend.
The authorized balance of 26,069 shares will be available for general corporate purposes..

May 3 company filed application with the Arkansas P. S.
Commission for authority to issue $2,000,000 2% % first
mortgage bonds due in 1976. Proceeds would be used for

additions and improvements to the company's properties

Missouri, Arkansas, Kansas and Oklahoma. Probable
bidders include The First Boston Corp.; Halsey, Stuart
in

& Co.
•

Inc.; Shields & Co. and Lehman Brothers.

Engineering A Research Corp.

June 14 reported company,

Columbia Gas A Electric Corp., New York

April 12 it

stated that in final step in recapitaliza¬
is expected to sell approxi¬
mately $110,000,000 debentures to pay off balance of
senior securities and provide funds for property ex¬
pansion.
Probable bidders include: Glore, Forgan &
Co.; W. E. Hutton & Co., and Halsey, Stuart & Co., Inc.
tion

/t; :-■■////;/

reported/that company plans to offer iiv;'
July to shareholders rights to purchase 298,971 addi¬
was

Empire District Electric Co., Joplin, Mo.

Light Co.

June 17 it

manufacturer of air coupes,
contemplates the issuance of 300,000 shares of common
stock, with Hemphill, Noyes & Co. as underwriters.

was

program, corporation

•

Fairchiid Engine A Airplane Corp.

May 28 corporation entered into an agreement with*
Smith, Barney & Co. and associates which provides that
bankers will at any lime during period from June

25,

mission

1946, to and including June 28,1946, make a single pur- /
corporation at $3.75 per share of such <
of shares of the corporation's authorized but
unissued common stock as corporation may elect to sell
to them but not to exceed the lesser of (a) that number

$290,000,000

of shares

Consolidated Edison Co. of New York, Inc.
June 12 filed with the New York Public Service Com¬

petition for approval of issuance and sale of
first and refunding mortgage bonds, the
proceeds to be used to refund $304,240,000 outstanding
long-term debt. Interest rate or rates to be determined
by competitive bidding or other negotiations. Probable
bidders include Morgan Stanley & Co.; Halsey, Stuart
&

Co., Inc.; Blyth & Co., Inc.

Consumers Rower Co., Jackson, Mich.

18 company requested the SEC to approve the
disposal of a sufficient number of common shares at
competitive bidding to raise $20,000,000. Probable bid¬
ders include Morgan Stanley & Co.; Lehman Brothers;
Shields & Co.; Harriman Ripley & Co., and Mellon Se¬
curities Corp.
Consumers, a subsidiary of the Commonwealth &
Southern Corp., also proposes to increase the common
from 2,000,000 to 6,000,000 shares and to issue 3,623,432
new common shares to its parent for the 1,811,716 now
held by Commonwealth.

Continental Foundry A Machine Co.,
June20
of

Chicago

stockholder^

will vote to create a new"/issue
5% convertible preferred stock which will be offered

in exchange on a share-for-share basis for 7% preferred
stock. All the 7% stock which is not exchanged will be

redeemed

July 1 at $105.

Each share of new stock

will be convertible into two and a half shares of com¬
mon.

•

Continental Motors Corp.,

Noel & Co.

chase from the
number

which, when taken at the public offering price
share at which the bankers may resell said shares//
will constitute an offering of $300,000, or (b) that number
of shares of common stock into which the shares of
per

preferred stock were convertible which were not con¬
verted on or prior to the redemption da.e. Agreement
also provides that if any shares of common stock so
purchased from corporation shall be resold by the bank- §
ers at more than $4.50 per share the bankers will upon ;
such sales, pay corpora .ion the difference between /
$4.50 and the price at which such shares are so sold.

all

del

Fidelity A Guaranty Fire Corp., Baltimore
1
July 26 stockholders will vote on increasing authorized
capital stock from 100,000 shares to 200,000 shares (par
$10). The new stock will be offered for subscription i
to stockholders pro rata at $40 per share.
The U. S.
Fidelity & Guaranty Co. (parent) has announced that.
it will exercise its right to subscribe to the slock to
which it is entitled and has agreed to purchase-at $40/
per share any new slock not subscribed for by stocky
holders.

Florida Power Corp.
was reported that company to meet financing
expenditures in 1947 may find it necessary to issue additional common stock if market conditions warrant it.

June 4 it

•

Detroit

June 13 corporation plans sale of approximately $12,000,000 convertible preferred stock io finance expansion and
modernization of Muskegon plant, provide funds for

Fox Metal Products,

Inc., Denver, Colo.

(Conn.) Gas A Electric Corp.

Derby

June

18 corporation and three of its subsidiaries filed
petition with the SEC to grant the parent permission
to issue additional securities.
Proceeds would go to the

subsidiaries

as a

loan to finance cost of additional facili¬

subsidiaries /are Derby Gas &

Electric ? Co.;
Danbury & Bethel Gas & Electric Light Co. and Wallingford Gas Light Co. The parent corporation plans to issue
$500,000 additional' debentures and 20,066 additional'
ties.

The

shares.

Debentures will be sold to an insti¬

tutional investor: and stock offered to company: stock¬
holders.

Detroit Edison Co., Detroit, Mich.
March

committee

directors formed to consider
Probable bidders

refinancing of $65,000,000 3 %s and 4s.
include:

Securities

First Boston Corp.,
/
Dillon, Read & Co. Inc., Coffin & Burr, Halsey, Stuart
& Co., Inc., and Spencer Trask & Co.
Mellon

Corp.,

Durez Plastics A Chemicals, Inc.
June 19 stockholders will vote on increasing authorized
common from 500,000 shares (par $5) to 1,500,000 shares

(par $1.66%) to effect

3-for-l split.

reported company planning sale of 99,000 shares
of common stock through Frank C, Moore & Co. as.,j
underwriter.
Issue is expected to be filed with the
Securities and Exchange Commission shortly.
Offering
June 19

price will be $3 a share.

Proceeds for expansion.

Fresh Dry Foods Inc.,
•

;

& Co.

(jointly)'; Smith,
/Barney & Co.-Harriman, Ripley & Co. (jointly); Blyth
& Co., Inc.; Stone & Webster Securities
Corp. and First
Boston

lower-coupon first
mortgage bonds, proceeds from the sale of which would
used to redeem first mortgage 4%
bonds, 1994,
is expected to be postponed until late this year. Earlier
plans were for the retirement of the bonds July 1.
Three investment banking groups were set up to enter
competition for any new offering, viz.: Kuhn, Loeb &
Co.; Mellon Securities Corp., and Halsey, Stuart & Co.,

common

Southwest Corp.

Pursuant to plan of Central & South West
Utilities Co.
and American Public Service
Co. approved by the SEC
a sufficient number of
shares of Central At

retire

' 4-

acquisition of additional manufacturing facilities and
working capital.
Probable underwriters, Van Alstyne,

Central Electric & Gas Co.

Corp., the

Chicago Milwaukee St. Paul & Pacific RR.

new

capital is
need^. Probable underwriters, Hincks Bro. & Co.;
& Webster Securities
Corp.; Hornblower & Weeks.

Central &

4-nlr/\

Issuance by the road of $58,900,000

Bessemer Limestone & Cement Co.
May 27 stockholders voted 25,000 shares of new 4% cum¬
ulative preferred stock (par
$50). Directors plan to call

1 1

June

Distilling Co.

Jime 30 reported company
planning some new financing
with F. S. Yantis &
Co., Chicago as probable underwriter.

....

proposal, W. H. Wenneman stated that refinancing of
the Pere Marquette issue would be undertaken promptly
following consummation of the merger.

approximately

loading devices.

June

Smith, Barney & Co.

Imperial Diesel Engine Co., Oakdale, Calif.

2 for

$59,749,000

outstanding

•

Atlas

July 8 stockholders will vote on approving recapitali¬
zation plan eliminating 30,498, $6 first/preferred
stock* f
series A, through /issuance /ofu $3,658,800 4% %: income ?
debentures./Debentures are to-be offered-to preferred»
stockholders in ratio of $120 par for each preferred
shared
F. S. Moseley & Co. will be underwriters.

May 7 stockholders approved proposal to increase the
company's indebtedness from time to time by additional
amounts not in

on increasing authorized $1.66% par share to
3,000,000 shares. Additional shares would be held sub*,
n
ject to issuance from time; to time by directors.

Eastern Massachusetts Street Ry.

C. & O., it is expected, will take steps to refinance the
refunding and improvement 3%s, due in 1996, of which
$37,500,000 series D and $27,600,000 series E were out¬
standing at the close of 1945. The Pere Marquette has

and working capital.

Management does not anticipate
entering in.o any underwriting arrangement.

—

also, vote

June 18 reported that probably one of the early devel¬
opments when and if the merger of Chesapeake « Ohio
Ky. and the Pere Marquette Ry. is approved will be
a refunding operation to take in the debt of both roads.
4*1%

due in 1980.

Artloom Corp.,

Geophysical Service Co.

Chesapeake & Ohio Ry.

•

^June

FINANCIAL CHRONICLE

Stockholders will

Columbia, S. C.

May 29 reported a registration statement covering 650,*.
000 shares of common stock (par $1). Expected to be/
filed at an early date with Newkirk & Co., New York, as
principal underwriters. Public offering price about $5/
per share.

General

Telephone Corp., New York

April 17 stockholders approved amendment' to eertifi? /
cate of incorporation modifying restrictions against in¬
curring debt for capital purposes without specific stock¬
holders' approval.
Stockholders also approved amend¬
ment to authorize 175,000 additional preferred shares.
Probable bidders include Paine, ?Webber; Jackson & L
/Gin tis;/;/M/p/i
Goldring Merchandising Co.
May 28 reported prospective financing fceing discussed
with Merrill Lynch, Pierce, Fenner & Beane, as under-*
writers.

Grand Union Co.

May 23 reported directors giving careful consideration
to a splitup of common shares and issuance of additional
new stock, but it is likely that no action will be taken
.

)

r'p'tr'if

Defore

Number 4500

THE COMMERCIAL & FINANCIAL CHRONICLE

September. The management, it is said, is

Kurman Electronic Corp.

now

■naking an exhaustive budget study to deterinine what
idditional capital will be needed to finance an expansion

various electrical relays and
clocks, Is reported planning the sale of 90,000 shares of
common stock through B. O. Cantor
& Co.
An addi¬

hares of common stock

(par $1)

expected.

was

Macfadden

Com-

>any, it is stated, will also sell 150,000 warrants to unierwriters at 10 per warrant.
Price of stock to public

was reported that
company had under con¬
sideration plans to refund the
outstanding 6% deben¬
tures and the $1.50
participating preference stock.

expected to be $3.50 per share. Underwriters, it is
inderstood, will be R. H. Johnson & Co., New York,
nd Shillinglaw, Bolger & Co..
Chicago.

stocks

two

stock and' bond interests in
this company, engaged in
the export of hardware and farm
implements with the
aid of foreign and domestic
affiliates.
Securities being
offered include 2,164 shares
(21.99%) of the first pre¬
ferred stock, 1,588 shares
(34.90%) of the second pre¬

subsidiaries,

lulf States Utilities Co. and El Paso Electric
Co., and for
heir distribution to Engineers common stockholders,

'he; Gulf

States

Utilities

stock

would

distributed

Highway Safety Appliances, Inc.

(7/1)

17 company intends
shortly to file by notification
5,000 shares of convertible preferred stock and 25,00(1
lares of common stock.
Irving J. Rice & Co., New
"ork, will be underwriters.
It is expected that the
une

referred will be offered at $6 per share and the
at

lon

$3.75

per

lston Electric

Hollander

(A.)

uly

-ock

2y2-for-l and

trucks

com-

will

vote

at 12

authorizing

preferred

stock.

underwriter,

companies will be operated under their

n name.
•

Hungerford Plastics Corp., Summit, N. J.
ay 29 stated filing by letter of notification expected
xt week of 74,000 shares of common stock to be sold
behalf of the company.

Proceeds—For expansion, etc.
rst Colony Corp will be underwriter. Public
offering
ice expected at $4 per share.

Illinois Central RR.
was

announced that in

connection with pro¬

sed bond refunding plan
company proposes to sell
5,000,000 first and refunding mortgage bonds Series B.

oceeds would be used to retire

outstanding refunding

rtgage bonds to be called for payment Nov. 1 at 107%.
obable bidders: Kuhn, Loeb & Co. and
Halsey, Stuart
Co. Inc.

Illinois Power Co.,

Decatur, III.

ril 11 company filed plan with SEC to
simplify capistructure.
Plan contemplates the conversion of
5%

mulative preferred stock (par $50) into common stock
basis of two common shares for one
preferred. Comy states underwriting is available for this convern program
and will cover a 30-day commitment to
rchase enough additional common to redeem

any pre-

red not tendered for conversion.
uance

200,000 shares of

such additional

dividend
bidders

ane;

common

Company proposes
preferred (par $50)

new

shares to provide cash to

arrears certificates ($11,596,680).
include Merrill Lynch,

Prob-

Pierce, Fenner &

Otis & Co., and the First-Boston Corp.

24 it

was

Consolidated would

(Del.)

21 pursuant to amended plan filed with SEC comto sell through competitive bidding $20,-

),000 new first mortgage bonds and such number of
00,000 common shares as may be necessary to enable
i
company to carry out the- provisions of the amended
Probable bidders include the First

Boston

Corp.;

Isey, Stuart & Co. Inc. (bonds only); Dillon, Read &
.

Inc. (stock only).

Kansas Power &
y

Light Co., Topeka, Kan.
31 reported company probably will replace out-

nding bonds and preferred stock with
urities.
de

Probable

new

bidders if securities

lower cost
sold in-

are

Halsey, Stuart & Co., Inci (bonds only); The First

ston

Corp.; Blyth & Co., Inc.^ Kidder Peabody & Co.;
rrisHaU& Co. (Inc.).

12 it was reported that new

financing by

company

contemplated within the next-30 to 60 days. It is
-stood

un-

that conversations have already been started

li underwriters.

<■

Co.-

was

;■

States.

Michigan-Wisconsin's

bonds

include Dillon, Read & Co.
Inc.; Glore, Forgan
Co.; White, Weld & Co.; Halsey, Stuart & Co. Inc.,

and Mellon Securities

Corp.

Refunding step would strengthen company's capi¬

Probable

bidders

include

Otis

Forgan & Co. and Lehman Brothers
Stuart & Co. Inc., and

Co.,

Glore,

(jointly); Halsey,

Dillon, Read & Co. Inc.

June 16 directors authorized
tion rights at $50 per share

offer of stock
subscrip¬

to holders

statement

its

common

SEC

about

becomes

mailed

June

24.

When regis¬

effective, subscription
about

July 22

war¬

common

«;
-

probable following the virtual
•
completion of the refunding program of this subsidiary. - /
is one of the few
remaining steps prior to com¬
plete divorcement of the CiHes Sorvice Co^ from the ^
utility field in compliance with the Public Utility Hold¬ urn,ing Company Act.
'
;

4fr«v-

Oklahoma Gas & Electric Co.* Oklahoma

Company contemplates at

same

Electric Co. sells its holding
cordance with SEC

regulations)

time

■

Standard'Gas &.

common

City

stock

(in

ac¬

sell

approximately
stock* fcrdceeds of which
will be hsed to reimburse
treasury and retire bank Joan
used in redeeming the 7%
preferred stock.
Probable
bidders will include Merrill
Lynch*. Pierce/ Fenner
Beane; The First Boston Corp., and White, Weld & Co.

140,000 shares of

new common

Lighting Corp.

June 7 directors authorized the
management to prepare
plans for refunding the corporation's 200,000: shares fno-

par) cumulative $5 dividend preferred.
probably be underwriters.

Blyth & Co. will

Pennsylvania Edison Co.* Altoona* Pa.
March 28 company applied to the SEC for
permission to
issue (a) $23,500,000 first
mortgage bonds series of 197(L
and (b) 101,000 shares of series C
cumulative preferred
are

dividend rate not to exceed

4%.

...

May 23 it was reported that company may refund its
outstanding $4,300,000,5% debentures due 1959 later this
year with new lower-cost securities.
writers Van Alstyne; Noel & Co.

through competitive bidding. Prob¬
Mellon Securities Corp., Smith*
Barney & Co., Kidder, Peabody & Co., and Merrill Lynch*
Pierce, Fenner & Beane.
include

Pennsylvania Gas & Electric Corp.* York* Pa.
May 7 corporation applied to the SEC for permission to
common stock of the
Petersburg & Hope¬
(a subsidiary) consisting of 55,000 shares
(par $10) to Scott, Horner & Mason, Inc., of Lynchburg;
Va., for $600,000, plus closing adjustments.

sell all of the

well Gas Co.

Corp.* Philadelphia

„

May 17 stockholders voted to increase capital stock from (
2,000,000 shares of common to a total of 3,370,057 shares;
consisting of 250,000 preferred shares (par $100), 2,500,000 common shares (par $3)^and 620,057 class B
stock
(par $3). Purpose is to secure permanent capital as
may be required for future expansion.
Smith, Barney :
& Co. probable underwriter if sale of securities takes
%
place.
' ^ ^
-

Probable under¬
•

shares of

.June

11 company filed with SEC a
voluntary plan of
simplification and recapitalization calling for retirement
of the company's entire funded

indebtedness through

Red Rock Bottling Co.*

June

f& Electric Corp.* New York

series of financing operations.

Both

to be sold

bidders

Philco

National Container Corp*

National Gas

This

Lines* Inc.* Chicago

May 15 it was intimated that company may have financ¬
ing plans in connection with steps being taken in ac¬
quiring additional lines. Probable underwriters include
Reynolds & Co.
-

reported
common

underwriter.

Pittsburgh, Pa.

planning sale of 199,000;
stock, through Frank C. Moore & Co.
.

company

;

Issue expected to be filed shortly with

the Securities and

Exchange Commission.; Public offer-*
ing price will be $1.50 a share. Proceeds for expansion.

]

The plan provides, initi¬

ally, for redemption of the presently outstanding 5%
first lien collateral trust bonds
by using the proceeds
new

'O
k

additional share of stock for each
Company intends to file a registration

holders of record of July 18, 1946. Warrants
will expire
on or before
Aug. 13. Probable under¬
writers include Glore, Forgan & Co. and Shield
& Co.

was reported that early sale hy 0ties Service
Power & Light Co. of its common stock
holdings of Ohio
Public Service Co. was

able

if not exercised

•

S.'-',

one

four shares held.

./"•

May 28 it

issues

will

Ohio Public Service Co,>

stock, with

Montgomery Ward & Co.* Chicago

rants

forerunner to distribution of its stock

by the American Light & Traction Co., parent, to enable
latter to meet Utility Holding
Company Act require¬

stock in ratio of

Pacific

May 6 it was reported company is considering refund¬
ing its $13,000,000 4V2 % bonds due 1967 and the refund¬
ing or retiring of the $2,000,000 outstanding 7% preferred

ments.

series.

new

bidders, "Morgan
Stanley & Co., Halsey, Stuart & Co. Inc., and
Kidder,
Peabody & Co.
'

Milwaukee Gas Light Co.

proposal also
contemplates issuance of $6,000,000 in 2% 5-year serial
notes and of $34,000,000 in 3%% 20-year first
mortgage
bonds to complete the "initial financing." The
plan has
yet to be presented to the SEC. Probable bidders of the

tal structure

reported April 10 that company has under con¬
refunding of $55,000,000 collateral trust

4%% bonds due 1975 and the issuance of
of collateral trust bonds.
Prospective

new

Midwest

KLM Royal Dutch Airlines
le

part of the initial financing
company, which proposes to build a $71,000,000 pipe line to bring natural gas from Texas to
the

National City

y proposes

in.

of about same size
carrying lower coupon rate. Probable
bidders, Halsey, Stuart & Co. Inc.* and Harriman, Ripley,

stock, would acquire full control of the Michigan-Wis¬
Pipe Line Co. Sale of the stock to Michigan

•

underwriters, Hayden, Stone & Co.* and

sideration the

consin

lart & Co. Inc.

Interstate Power Co.

Probable

Northern Pacific Ry.* St.
Paul* Minn.

Michigan-Wisconsin Pipe Line Co.
May 3 it was reported that Michigan Consolidated Gas
Co., through the purchase of $17,000,000 in common

stock.

'
„

April 17 reported that company has under consideration
the refunding of its
$45,000,0p0 series C 3%s with issue

share.

per

statement with the

reported that company probably will
lace its $32,000,000 first 3%s due
May 1, 1970, with
lower-cost securities.
Probable underwriters inde Lehman Brothers; Blyth &
Co., Inc., and Halsey,

$7.50

bidding.
Probable bidders include Blyth & Co.,
Inc.;
Kidder, Peabody & Co.; The First Boston Corp.;
Harris,
Hall & Co. (Inc.); Merrill
Lynch, Pierce, Fenner &
Beane, and Ira Haupt & Co. - ^
•

tration

Indianapolis (Ind.) Power & Light Co.
ril

First Col¬

April 1 filed with SEC application to sell (a) $3,500,000
first mortgage bonds due
April 1,"1976, (b) 14,000 pre¬
ferred shares (par $100) and (c) $400,000 common
stock
(par $10). All issues would be sold through competitive

Halsey, Stuart & Co., Inc.

expected to be

offered at

Northern Indiana Public Service Co.

Mich.

derstood, will be offered to the public at a date to be
nounced later. Blyth & Co., Inc. are associated with
r. Hoving in his
plans. The corporation will acquire
nership of and operate well known department and
ecialty store companies in various parts of the United

3 it

years.

Michigan Gas & Electric Co., Three Rivers,

28 Walter Hoving, former President of Lord & Tayr, announced incorporation under laws of Delaware of
oving Corp. with an authorized capitalization of 2,000,0- shares ($1 par) common. New York office of the
rporation is at 10 Rockefeller Plaza. The shares, it is

held

Forming Corp.

sold for the account of certain
stockholders.
ony Corp., is to be underwriter.
Stock

Hoving Corp., New York

■

May 29 filing of letter of notification expected in two
60,000 shares of common stock (par $1) to be

common

Lynch, Pierce, Fenner & Beane.

These

lots
to

weeks of

ates.

the six

auction

York.

issue of $1,500,000

Probable

by public

noon

Metal

splitting

individually and

Sale will be

;

New York Dock Co.* N. Y.
May 28 reported negotiations will be resumed probably
in June with view for
refunding of $10,000,000 first
mortgage 4sr due 1951. ' New issue will probably ruii 25

(EDT), June 21, 1946, at the Office of Alien
Property Custodian, 120 Broadway, New York
5, New

and buses.

six lots

entirety.

Company manufactures the

for

the

& Son, Inc., Newark, N. J.

stockholders

mvertible
errill

share.

Sander

Proceeds will be used to retire at
par and interest out-

standing debentures. Bidders may include Halsey, Stuart
& Co., Inc. (for bonds
only), Bear, Stearns & Co. (for
stock only), First Boston
Corp., White, Weld & Co.Kidder* Peabody & Co. (Joint).

ferred stock, 1,046 shares (29.90%) of the
class A com¬
mon stock, 2,000 shares
(38.10%) of the class B common
stock, $39,900 (14.60%) of 6% serial bonds and
$93,100
(14.90%) of 6% income bonds.
Bids will be received

hrough issuance of rights.
>

Association* Cam¬
bridge* Mass.
March 27 filed amended recapitalization'
plan with SEXT
providing for sale at competitive bidding of (a) $22,- {
500,000 20-year sinking fund collateral trust bonds, plus
(b) sufficient shares of new common stock out of the
original issue of 2,300,000 shares to supply $11,500,000.

Markt

Jay 24 in connection with plan of dissolution of Enginers Public Service Co.
part one of the plan calls for
common

New England Gas & Electric

& Hammacher
Co.* New York
May 23, Alien Property Custodian James E. Markham
announced that he is
offering at public sale minority

Gulf States Utilities Co.

Price $3 per share.

Publications* Inc., New York

May 20 it

eclassification

tional 7,500 shares would be sold for
account of N. S.

Kurman, President.

reported' that early registration of 350,000

was

sidiary would be sold privately at par and accrued inter¬
est through an investment
group consisting of Battles
Co., Inc., Philadelphia," GZ H. Walker & Co. of Provi¬
dence, R. L, and Smith, Landeryou & Co., Omaha, Neb.
Under the plan, National Gas & Electric
also would
dispose of its holdings in Northern Indiana Fuel &
Light Co.

Company, manufacturer of

Green's Ready Built Home, Inc., Rockford* III.

day 15 it

3393

Vblume 163

$2,100,000 secured bank loan, and the.

repay¬
ment of this bank loan with funds to
be received by
the corporation as a result of the
refunding of the bonds
of its wholly-owned subsidiaries—National
Utilities Co.
of Michigan, and Industrial Gas
Corp. of Ohio. The new

$980,000 first mortgage 3 % bonds of the Michigan sub¬

Rochester (N. Y.) Telephone
Corp.
May 29 expected early registration and competitive sale
in June of $6,238,000 35-year bonds now held
by Halsey,
Stuart & Co. Inc. Bonds now
carry a 2V2% coupon but
it is probable that
company will request that rate be
specified in the bids. Probable bidders include Halsey,
Stuart # Co., Inc.
*
(Continued on page 3394)

THE COMMERCIAL & FINANCIAL CHRONICLE

3394

issues totaling $100 million With a new issue, is under¬
stood to be exploring the possibilities of placing the ne>v.

(Continued from page 3393)

St. Louis, (Mq*) Public Service Co. :
April 19 the company petitioned the Missouri Public
Service Commissioni to simplify its:, financial .structure
including reduction in interest and sinking fund changes.
Company proposes to retire current funded debt ($11,640,683) and to issue up to $10,000,000 new bonds, but
limited originally to $6,000,000.
Probable bidders in¬
clude White, Weld & Co.; Blyth & Co., Inc., and First
'Boston Corp.

bonds with insurancet companies, rather than marketing'
thetfi publicly. Np decision has peen made
If
public offering is made Dillon, Read & Co., are expected
to head underwriting group.

Southern

Toledo

tive) sufficient common stock to realize $10,000,000, to
invested in Southern Co.'s subsidiaries and new
construction.

•

Southern Electric System* Inc.
May 10 pursuant to substitute plan for retirement oi
preferred stocks of Electric Power & Light Corp., filed

curities in

June

underwriting

issue probable
Halsey, Stuart

for

same

time, of bidding for a block
204,153
shares
of
common
stock $8 par, of the Ohio Edison

ing negotiated between the First

Boston

which
after

was

the

SEC

from

tests

which wanted

vestment

the
in¬

ance

had

heard

minority
it held

pro¬

group

in abey¬

until after the entire Com¬

monwealth

interests what

banking

bidding

cleared for

Corp,,

Southern

plan had been approved.

with securities of three large op¬
Phila. Electric Power"

Dealers reported a splendid re¬

ception for yesterday's offering of

Ai least three banking groups
expected

bid

for

$30,000,000 of new first, mortgage
bonds; due 1975, of fhe Philadel¬
phia Electric Power Co., which
were offered at; a
price pf 102.567
to return a yield of just about
2.50%.
'
' '
>
#: I ■;

the

$50,000,000 of new first mort¬
gage
bonds, due 1976, being
offered by the Wisconsin Elec¬
tric Power Co., largest utility
issue

brought out in some time.
deal

This

also

involves

handling of exchanges and
chase of any unexchanged
tion. of

260,000

the

Since the successful banking

pur¬

group paid the company a price
of 102.089 for the issue on Tues-

por¬

new

$100 par value preferred stock.
Two of the banking groups are

day, it proved
deals

expected to see this part of the
business also;
'

one

of the closest

record in the corporate

field with

spread of less than

.14Point indicated,

forerunner

these

petition.
A Little Too Rich

Monday

when bankers refrained

from sub¬

What

preferred stock of the Iowa

to available

bit

size of

readily

could

lively.

year bonds may be more signifi¬
cant than it appeared at the time.,

It... suggests5 at least; that: un-;
derwriters have reached a point

compatw^did, however, re¬
its offering of should be made for coinage, after
169,636 shares
$1 par common July 1, 1948. Silver, for which
The

ceive five bids ipr

with the^est tender being

stock

$12.60

a
shftfer Others ranged
from $JUL359 to $11.55
a
.

share.

(Mills; Offerings
The
reactiGUJliry 'mood of the
stock market presumably was re¬
sponsible for Jnc decision of un¬
Market

derwriters to

ing of at

lea^Jtwp stock issues

were

for this and a

high-rated issue, its quality

Philadelphia banks and insurance
companies.

2.80%

interest rate of 3%, or a

cost

basis

the

com¬

%pen

Committee,.. Atl^'Asspciated',

l»ress

fro.f|^Washington

after

ounce

July

1948,

were

pany.

written
Bankers

calculated

that

they
could not resell the issue profit¬
ablyvin the i current5^ market; < It
could

that

the

fringes of the

"sellers' market" which has ruled

ment

nfTreasury Depart¬
appropriation bill for the
into

fiscal year
the latter

coined,

$3.29
in

value

seigniorage.

of Protestant church¬

group

who

men

recently

White House
their

number,

assurances

that

were

the

have

received

from President Truman

Myron:, C.:

been the

visited

said, by one of

Taylor,, who has

P^CSidentV^pdrsohai rep¬

resentative^ tftc Vatican, would
be

recalled

treaties were

soon

the peace

signed* according to

Press

advices

was

from

June 5. The

made by

t)r. John

sta^rig

one

of the committee of 11

that

recommended galled on the President. "In the
minds of Protestants," he con¬

about $1,29 an

in this, instancethat it would not
bid of less than 104

receive

MacLean, representing the
for
southern Presbyterian > churches as

Provisions

"through the nose'' just for the
satisfaction of winning an-is!be.

has

known

statement

ln^hc pncev of sti¬

sp(d^ by-lire Treasury
4cmiestic:nmai§faqture fremf^ the
present 71.11 ^ents to 90^. cents
ounce

when

.The increase

Richmond, Va., on

ver

now

ounce.

Associated

Silver Price |Uicrease
SeSate Group
An iticrease

producers

the Treasury 71.11 cents an
ounce, is worth to the Govern¬
from

liefer public offer¬

tentatively due on
the market yes^rday.
One of these*^as. Barium Steel
Corp.'s project .issue of 350,000
shares of $1
stock .for
funds ,to pay off bank debt and
expand- workmg cabitali; A sec¬
ond was Den?pan> Tite & Rubber
Co.'s 50,000 Shilc'S/of 5% cumu¬
lative convertible preferred stock.
which

domestic

ment,

.....Iffe;,-.

increa^td

they can't afford to pay

full
monetary value" less
charges as the Secretary of
Treasury
shall
determine

the

further

where

"the
such

thiri'.^^;_;.

June 9.

Electric Light & Power Co.

Securities Corp. (Joint); Blyth & Co., Inc.; Shields &
Ge^and White, Weld & Co. (Joint); W. C. Langley &
Cow,.Merrill, Lynch. Pierce, Fenner & Beane and Kidder;
Peabody & Co. (jointly).
■■■■*,<**$

reported

The direc-

ized* company to issue $9,000,000 30-year debs., int. ratd
ntfcto exceed 2%%, to Oe guaranteed oy parent. Issue
to be sold through competitive bidding.
Possible bidden
i®ude Halsey, Stuart & Co., Inc.: Morgan Stanley &

had specified

presumably appealed to large in¬
stitutional investors" particularly
!

(N. Y.)

The company

banking facilities and
case

happened

mitting bids for California Elec¬
tric Power Co.'s $16,000,000 of 30-

bidding in this

paramount.

among;

for

days

the, largest in the
field and* accordingly, the more
able to ,meet the growing com¬
up

48-hours, promptly
gave
the
"green light" to the transaction.

this deal* lends itself

pos¬

Whatever the other motivating

usually withholds clearance for

The

other

factors, it appears that the mat¬
ter of capital necessary to swing

turity, and 42,500 shares' of $100
Co,

since

sible combinations.

mortgage bonds* thirty-year ma¬

Service

"natural"

several

Jrme^H New York Public Service Commission author*

mission, since that body which 1

be bidding for $13,750,000 of first

Public

Corp.; Harriman Ripley & Co.

•—Yonkers

V.- :
This oiie must have, measured
fully up to the liking of the
Securities and Exchange Com¬

On the same day bankers will

par

Boston"

long j^eriod are finally

wearing.

down
a

neither firm greatly overlaps the
other it was considered as the

The resulting firm will be well

route.

are

trade.

the big underwritings that crop

erating public utility firms up for
sale via the competitive bidding
-

Corp.,
and the Mellon
Securities Corp., must go down as
one of the best kept secrets in the
as

ihjTune its holdings of 1,099,970 shares of common stock;
Probable bidders include The Wisconsin Co.; The First

the issuance of

Banking Mergers

Viewed

Cp-. Lehman Bros., Harriman Ripley & Co. and Union

The consolidation currently be¬

Five groups are known to be

was. reported that Standard Gas & Electric
Qwcxpected to sell a- competitive bidding some time

(N. J.)

will have the opportunity, at the

in the running for this business

•••'.'

-^^Wliconsint Public Service Co., Milwaukee, Wis.

stockholders voted to approve

May .20 it

exchange.

fraternity

toj-^have rejected the conditions attached by the ICC
May 27 filed a peti ion for recon¬
sideration and oral argument.
Probable bidders include
Blyth & Co., Inc.; Bear, Stearns & Co.; Halsey, Stuart
&£Cq.<£?Inc.;, Merrill Lynch, Pierce, Fenner & Beanej
& Co., and Glore, Forgan & Co.

share exchange for

retire two outstanding debenture

'f.v.

RWjjkf? Interest rate to be specified in bids.

213,287 shares of new 4Vz% preferred stock in share-foroutstanding 7% preferred stock. Any

reported that the company which recently

.•

but the company on

stock not taken in exchange will be sold

United States Lines Co.

plans to refinance

authorized company to issue
$10,600,000 first mortgage bonds, series B, due Jan. 1,
193.1, proceeds to be used to refund a like amount-of
fittt mortgage 4%/bonds due Jan. 1, 1974, and held by

after July 1. Proceeds will be distributed to the Light
& Power stockholders who have not tendered their se¬

Eastman, Dillon & Co. principal underwriters.

Next Monday will be one of
busiest days in some time for

Light & Railways Co.

ways common

co.

date.

.^Western Pacific RR.
AfH^t^blCC conditionally

United

Sunray Oil Co.

TW|J

has under consideraAnnouncement expected at

company

Piobable bidders include
Kfmn, Loeb & Co., and Halsey, Stuart & Co. Inc.
:

advising stockholders of its former parent, United
Light & Power Co., that July 1 is the final date for ex¬
changing their holdings under terms of the dissolution
plan which went into effect in March, 1945. The plan
provides that Railways common stock be issued in ex¬
change on the basis of five shares for each Light &
Power preferred share, and one-twentieth share for each
A and B
common share of Light & Power.
The Rail¬

The

reported

was

sw»fiern Maryland Ry.
Ma^22 reported company working

May 1 proposed merger of Sunray and Transwestern
Oil Co. announced, subject to stockholders' approvaL
Public distribution of securities of Sunray is proposed

plans to

early

(Kansas)

Inc.

was

lion^a refinancing program.

& Co. Inc.

May 23 reported company plans registration in imme¬
diate future of $2,000,000 debentures.
Proceeds to be
used to pay $1,000,000 bank loan and for working capital.
Probable underwriters, Eastman, Dillon & Co.

was

$44,901,000 first mortgage 4s.

announced

System,

company decides to refund through new
bidders will be Kuhn, Loeb & Co., and

plans early registration

«*Waitt & Bond, Inc., Newark, N. J.

May 9 it was reported officials are considering the ques¬
tion of meeting the $100,000,000 first mortgage railroad
and land grant 4's due July 1, 1947. However it is felt
maturity date is too far away to determine now whether
issue will be paid off in cash or will be refunded. If

$4,275,000 20-year sinking fund debentures and $1,200,000 preferred stock, with Shields & Co. as under¬
writers.
'
1
"

headed

group

reported that company may possibly re-f.
1971 with a
coupon issue.
Possible bidders include Halsey.

June 12. it

Union Pacific RR.

Texas Co.

investment

preferred stock (par $100) at $103 per share.

Co.

Sunray Drug Co.

Stoafv & Co., Inc., and Kuhn. Loeb & Co.

provisions of merger plan of Union Gas System,
(Delaware) and Union Gas System, Inc. (Kan.)
latter has completed negotiations to sell through Kansas
underwriters to residents of Kansas only $500,000 5%

& Co., New York

June 18 reported that company

sold

Inc.

company

Sun Chemical

;

fu$$ its $47,000,000 first mortgage 3y4S of

Under

Kan.

May 29 it is rumored that company expects to do some
new financing
in the immediate future following the
merger of several Southern mills in which the company
holds a controlling interest. Reported Morgan Stanley
probable underwriter.

June 7 it

May
tower

Union Gas

is planning issuance of 99,000
shares of common stock (par $1) to be offered at $3 per
share, with Clayton Securities Co.; Sills, Minton & Co.,
and Estes, Snyder & Co., as underwriters.

with

company plans 'he sale of
stock with Cruttenden & Co. as un¬

outstanding $90,000,000 3%s of 1971 with lower cost
obligations. Possible bidders would include Dillon, Read
& Co. Inc., and Halsey, Stuart & Co., Inc.

Service Inc.

•

ftfofrhsft Railway

reported that

common

it is rumored that company contemplates refunding its

(J. P.)

Honxblpwer & Weeks.

Union Electric Co. of Missouri

Southern Electric System, Inc. The latter com¬

Stevens

Edison Co.

stockholders of Electric Power &

would be formed. to hold the stocks of Arkansas
Power & Light Co., Louisiana Power & Light Co.. Mis¬
sissippi Power & Light Co., and New Orleans Public

reported

the

wpi Sheratbm

Trust Co., Boston

derwriter.

pany

June 3

merger

Juja&Acompany has called its 45,000 shares of convert*-'
ble preferred stock for redemption on July 1 at $22 plus5
40 cents accrued dividend per share. The stock is con-5
vertible into common, share for share, at the option o$
the holder, prior to 3 p.m., June 27. An issue of addi->
tionffl common stock to take the p ace of preferred stock
unsonverted and redeemed has been underwritten by

Trane Company

additional

"will be

mon

(Ohio)

June 18 it Was

Light Corp., would be given rights to subscribe to United
Gas Corp. common stock and stock of the new holding

Southwest Merchandise Market* Wichita,

reorganization

the

Lefcfriah Brothers.

May 28 .it was reported that a refunding program is
contemplated at an earlydate for v thjs company to be
followed later by sale ai.competitive bidding of the com¬
mon stock now held by Cities Service Power

company

Inc.

Realty-Sheraton,

Corg, 42,390 shares of the reorganized company's com¬

Co.* New York

common

States

Rea®|^Tm;provemieht. Co. and

Textron, Inc^

SoutHerd-Cci. (to be successor to Commonwealth
& Southern Corp,5 proposes to sett for, cash (when;
Commonwealth's recapitalization plan becomes effect

SEC

United

In-connection** .with

April 30 it was stated that a plan was under way to
finance 3 new company to acquire the assets of Nashua
Manufacturing Co., 95% of the common stock of which
is ownCd by Textron.
Probable underwriter, Blair & Co

The

with

Thursday, June 20^,1946

July 1. Under

provision, domestic producers oteestt#«iuwouldi be paid

tinued, "the chief objection

to'

the

appointment of Mr. Taylor is that
it clearly violates the principle
of

separation of church and state

which
a

is so large and important

part of the foundation of

our

Government"

was

reported that the White

House had declined

oh Dr.

to comment

Maclean's statement.

•II;!'''V-'"

■

-JvW»ym .:'

Volume 163

Number 4500

;&*■

•iiiFiii mrii

THE COMMERCIAL & FINANCIAL CHRONICLE

■■

3394

rim

People Are Awakening
I

believe,

Off, at the

because of

source

un*-

j law of supply and demand will
'

Sound price policies.

take care of our problem in a free
American people are aWakehihg^
Yes, we are being fooled by economy;
OPA,
however,
by
that % the wage earner, the house OPA and recovery is being re¬ testimony of Mr.
Porter, Director)
W%-'
wife, the farmer, are all beginning tarded by its present policies.
says that its joh is to keep that
to
realize
■iN-'-' ■'.
that
law; of supply and demand from
something
is
Chant of "No Crippling Amend¬
survive and produce. Usually they wrong.
(Continued from page 3444)
operating. Certain controls, such
ments"
The Senate Banking and Cur¬
honest surveys in the nation in¬ are pushed int^#e vicibus circle
as
rents, should be maintained
dicate that at feast 80% Of the; from one official .to another, often rency Committee and the House
Mr. Bowles chanted the hymn but when the •
arbitrary; convfols
meat
being sold the public is ending up after/OXhausting weeks of Representatives are no longer of fear and of control for over a of OFA in field of production!
Black Market Ond from 25 to 30% and months hJLdelay With £ th£ being fooled by Mr. Bowles, and year—his
slogan has been "No that are able t6 reasonably
sup¬
sibove ceilings; butter was selling
dn the Black Market in New York

first official

thpp contacted, who

then

"tip?*

Bowles

says; •
Mr,.
to thinl& that wages

this week at a' dollar and a quar-' seems
and
ter a pound—in many places new materials can g&up 25 to 50% and
cars
demand almost any Black not affect the price.
The real labhj£ the greatest of
Market price asked—used cars are
almost entirely in the Black Mar-; all time,, has .-feeen organized by

Jcet

OPA itself.

Lasryear Mr. Bowles,

—
honest
distribution
has
broken down and honest produc¬

who has been an advertising man,

tion of needed goods for the vet¬
eran
and
the
householder
has

and

slowed up to a trickle.

lic money

half

millibicdollars of pub¬
on the^iost beguiling,

that

show

that

from

lack of

are

suffering

now

necessities

tion

correcting the situa¬
though it has had un¬

even

limited power
if

duction

and latitude—that

must spell out the rules
to

are

have adequate pro¬
if we destroy the

and

propaganda,
trols

pubtyc—schools,

&o Lobby Against Price Controls

>fHe complains of

organized

lobby to defeat price control.

cieties, clubs,
tions

were

literature
each

an^other organiza¬

flooded with expensive
designed" to appeal to

them,

jNewspapers and

magazines have been flooded with
items, stories, an&releases—short
and long radio talis and programs
have been cleve?ty designed and
fed to the American people—the
whole pattern
JiOs been one of
praise of Mr. Bowles and the cre¬
ation
of
fea^of dire
conse¬

I
jhavte seen no lobby, but I have
seen dozens of agonized producers
of food, clothing and goods who

if he is restrained in any
way, in his tigfflpriing grip on the
throat of rapid and. full American

have

About

Washington time
and again, petitioning and suppli¬
cating the autocratic authority of
Mr. Bowles to give them a rea¬
sonable price. so that they can
come.

quences

reconversion

five

-fqna

production.
have

hundred people

Senate

Banking

Committee
but

they do

evidence

Currency
destroy OPA

not

establish

ministrative

sound

administered
to do

the

so.

While, based

Committee

Mil ''""III

Ilium*

control

ucts

that

full

supply

meat

by the Chicago Boardpl Trade on June
trading in wheat and rye futurespmd the July and
September deliveries of corn and barley, with the declaration, accords
ing to United Press Chicago advices, that the government's program
Of grain shipments to famine stricken areas preventa^the board from
maintaining a "free, open and orderly market."
Q&tfutures and the
cash
grain
market - were
not#affected.
-•**
.* *•
.1.98%, corn-^a4~$1.46%, rye at
i
The action which became effec¬ $1.5814 and bar&jw at $1.35 %, all

B.
Bosworth,. acting
of the Chicago Board,
stated that the tight supply situa¬
tion prevents fulfillment of future
Contracts by delivery of actual
1 William

prices. |0tttstanding

ceiling

con¬

tracts will be settled "without de¬

livery."

:X:*0

•

| The order to settle at present
Ceilings came &s<-aj;elief to shorts,
who have been

honest

and looks for

removed and

sentiment took Mfd of the market.

Chasers to require liquidation "at

Officials

declined to comment

exorbitant and extortionatfe

prices."

would be off the board. Mr. Bos-

ment of interest be made at "the

special

how

worth's

long the banned futures

stateiflStttr issued after

meeting pf the board of
Closing price quotations." Trad¬ directors, indicated- there would'
the directors'
ing in the specified options stop¬ be no change.
ped at 12:23 p.m., Central-day¬ stand until th&IJight supply-de¬
mand situation H^ges'.
Jight time, today with wheat at

much

about

OPA's

hereby

OPA

this

that dur¬

same.

sidies

prices rose about
If you add the sub¬
the

and

Black

Market

prices as well as the inferior
grades of materials in this pres¬

of Directors of

Safeway Stores, Incor¬

the

of such stock of record

June 6 1946

NEW

INVESTMENT BANKING

•or more. -

"-v

ORGANIZER HAS HAD OVER 25 YEARS of experience in
practically every branch of the Securities Industry. He is
an up-to-date executive ahd administrator.
Ia^well con¬
nected in the- "Street" and. elsewhere in Bifiking and
Securities circles where his standing is ver/highj
..

KEEN-MiNDBlj, ALERT, has
with.
)

pleasant

and is easy to get along

"personality,

•

1
i,

,
7

p'x *

Commercial &
park.Place, New York 8, N. Y.

Address Box
25

S •• 29,

Financi^Chronicle,
^

20,1946

UN8

cents

shard

1946

25.

business

Tune

14,

24 Federal Street, Boston

SMELTING

STATES

company

mikckg

a::d

The Directors have declared a quarterly
dividend of 1%% (87^ cents per share) on

The Electric Storage Battery

Preferred Capital
Stock payable on
July 15, 1946 to stockholders of record at
close of business June 24, 1946. No
dividend
was
declared on the
Common
Stock.
'■{ it
FRANCIS FISKE,
June 13, 1946
! v
Treasurer.
the

company

the

183rd Consecutive

building materials have been shut

Quarterly Dividend

The Directors

HELP WANTED

have

declared

from

the

Accumulated Surplus of the Company a
dividend of fifty cents ($.50) per share on

the Common Stock,

1946,

Trader Wanted
Extremely attractive

payable June 29,
at the close
June 17, 1946. Checks

ARKANSAS WESTERN

stockholders of record

of business

GAS COMPANY

will be mailed.
H. C. ALLAN,

oppor¬

Dividend Notice

Secretary and Treasurer

tunity presented to experi¬
enced Trader on

ing

basis

over

the

Common Stock

Philadelphia 32, June 7,1946

profit shar¬

The Board of Directors of Arkansas

progressive

Western

Gas Company has declared
quarterly dividend of twelve and a
cents U2V2C) per share, payable
June 30, 1946, to its holders of com¬
a

counter house to

formed

July 15th.

half

Box

cial Chronicle, 25 Park
New York 8, N.

Checks

Pl.f
PHILIP MORRIS"

1946.

A re^ular duarferly dlvldend of £lM
per share on the Cumulative Preferred
Stock, 4%
Series,
and the regular
Quarterly dividend of 90* per share 01i
the Cumulative Preferred Stock 3.60%
Series have been declared payable Aug¬

Common

at the close of business on July 15,1946.

There also has been declared

terly

dividend

a auar-

six

resolution adopted at

new

Park

representative,
connection.
Box C-46,

Place,

Financial

New

York

Chronicle,
8, N. Y.

62'/2c
The

stock.

per

dividends

on
on

de¬

the11
de¬
the
both &•

KEMP,

Treasurer.
.

ABLNDEL

CORPORATION
•»
Baltimore, Md.
June 14,
1946.
Directors of the Arundei Cor¬

has this day declared 25 cents per
the regular quarterly dividend on the
value stcok of the corooration issued
and outstanding payable on and after July 1,
1946,
to the
stockholders
of record
on
the
corporation's
books at the close of business
June 19, 1946.
MARSHALL G. NORRIS, Secretary.
as

par

AMERICAN

have

shall
of

been

The

for

Certificates,

for

payable July
the

fer

books

COMPANY

Streets

1,
of

1946

•

American

to Stockholders of

business

June 20,

will remain open.
ROBERT B. BROWN,

LIQUIDATION

1946.

Record
Trans¬

Treasurer.

L. G. HANSON, Treasurer.

NOTICE

National
Bank,
located
at
Meriden, Connecticut is closing Its affairs.
A1
creditors of the association are therefore hereby
notified
to
present claims for payment.
The

for each share of Common Stock of the
T.*":

West

Certificates for

Common Stock of the par value of

par value of $10.,•'

and

Brcok'yn, New York
Board
of
Directors
of
the

Manufacturing Company has declared a divi¬
dend of 25c per share on the Common- Stock,

issued therefor.

Certificates

MANUFACTURING

Noble

of Common Stock of

$5 per share, on the basis of two shares
of new Common Stock $5 par value,

expe¬

rience^; ^registered
&

poration

share
no

Certificate or Certificates for new
Stock of the par value of $5

such

new

Dividend Ndtlce of

37 Vfetf

Common Stock of the par value, of $10
each are therefore urged to exchange

TRADER

Commercial

Board

The

the par value of $10 each is recognized,
for any purpose, until surrendered, and

Holders

seeks

;
L. L. BAXTER, President

and Common stock are payable July
1946,
to
stockholders
of
record
at
the
Cf -business June 18,. 1946.
' ■,
• ]

Certificate representing &

10,'1945,

First

WALLACE

July I, 1946;
Pursuant to

each

age,

1946.
about

the Stockholders' Meeting held on July

New York 8.

15,

from The

Preferred
5.

THE

per share on
($5 Par), payable
July 15, 1946 to holders of Common
Stock of record at the close of business

PI.,!

trading

June

Chicago on

Common Stock.

the

W 619 Commercial & Finan¬
cial Chronicle, 25 Park

years

capital

1, 1946 to holders of Preferred
S(ock of the respective series of record

retired/ but de-i
municipal!

28-

dividend

ust

Salary secondary. Box

man,

(The. Directors of this Corporation have
clared a dividend of • 371,<sc per -share on
Preferred capital stock.
They "have also

York, N. Y.

Philip Morris & C<J. fctd., W

sire to continue in

years over-the-counter

T046.

June 30,

clared

Twenty-two years with mu¬
nicipal and investment serv¬
ice departments of
large fi¬
nancial institution in Wall!
Street district and fourteen'
years with municipal de*;
partment of financial publi-

field.

record

will be mailed

National Bank

United Shoe Machinery Corporation
New

Available

cation; Now

stock

mon

620, Commercial & Finan¬

Young

shareholders of record at the

refiling

average worker, the veteran and
the entire public.
Lumber and

POSITIVE position to obtain
remunerative business, and secure high class), responsible
,

Tune

1946.

during the last war.
OPA can present charts and im¬
pressive figures but they don't tell
the actual story as it affects the

HE IS IN A STRONG AND
customers.

payable
close

FUND

dividend

Common

i4,

The Trustees have declared

June

Municipal Man

-Organized, is desirous oi adding to its present ^perienced
personnel, by taking In one or'more actiyfeigr inactive
partners, who .chit .contribute $250,000 working capital

Tune

HOWARD

STOCK

was

tcm-

being.

EATON

holders

the close of

June 14,

HOUSE^ow

to
the

24 Federal Street, Boston

MILTON L. SSELBY Secretary

SITUATIONS WANTED

ess

June 20,1946

business June 18,1946.
.

record

business

•

1946

25,

1946.

the close of

business June 18,1946, and $1.25
per
share on the
Company's 5% Preferred

Stock, payable July 1,1946,

cents
;

shareholders of

Company's $5 Par Value Common
payable July 1,1946, to holders

Stock

of such stock of record

June

payable

FUND

Trustees have declared

dividend of

June <5, 1946, declared
per

HOWARD

The

period, the actual price the
public pays for necessary items
(when it can get them) is higher
it

ATKINSON, Treasurer

BALANCED

ent

than

EATON

that the Board

given

quarterly dividends of 25c

employees

Capital Stock

of this Company, payable
July 15, 1946, to stockholders of record
June 28, 1946. The stock transfer books

Slock Dividends

"Hptzce

porated,

paid

the

Preferred and Common

•

this War as compared
price control in World War I.

oi|

share has been de¬

per

clared

June 11,1946

S§?

•plating an-International Bu'4

35£

and

record "in

Partner j Wanted

By Investment Banking House

A quarterly dividend

will remain open.

expected bullish

COMPANY

whipping boy.

DIVIDEND NOTICE

hear

the grain necessary to fulfill com¬
even IW bidding ceiling

grain and in the event price con¬

LION OIL

mitments

trols are lifted would enable pur-

4
"" '
The board ordered that settle¬

des roy
that he alone is the true prophet.
In effect he confesses failure

dairy prod¬
markets

can

still

Junable to obtain

price. They had Reared they would
be forced to ; settle * at sky-high
prices once pricq. controls were

DIVIDEND NOTICE

are

and

be had by the
great part of our
prices and our rents are left under
price control for a time.

public,

the

An unprecedented action

catas-

hatred —he

de¬

ing each War,

13 discontinued all

economic

class

trying to
the poor, and he intones

facts,

upon

recommends

personnel of less than 250 persons.
Mr. Bowles has had about 64,000

>111.111

and

capable administrator who desires

job /well—they have
fooled the American people.
'II

trophy

What America must have is full

In the last War, price control was
successfully operated with a paid

their

the- spectres of

production of food and essential
goods—if we get that then the

Department^ and they have

done

duction can be secured, then the
production American;; public,
through
its
distribution, he puts on the elected representalives, must act
witchhunter's
mask,
throws
a ifor the long range best interest of
mystic powder on the fires of our future and of a free
economy.
public emotion and Conjures uj>

and

upon

employed In his

Rye, Wheal Futures Trading Hllied

Secretary

ad¬

tion"

"Informa¬

the verge of returning to the
sys¬

facts, that can be
effectively by any

methods, based

and

war—the record shows

of
by & the Kansas City Board
Trade, where all futures trading
Was suspended, the "Journal of
Commerce" stated, June 14.

the

and

been

""*

tive immediately was followed a
few hours later by a similar move

so¬

are maintained,,

tem of American full

shouts that the rich

anq

the

that

>—

OPA is not

cies, is

price poli-:
responsible for this
condition
than
any
one
else.
Through his refusal to recognize
thai production cannot be had at
a loss, and his continued refusal
to decontrol products that are in
ample supply, it has become nec¬
essary for Congress to act before
$[r.' Bowles and his price policies
throw us into complete chaos.

demahd.

assurance of the intention

kindergarten drawings. The facts terference with my absolute au¬ of the government or the admin¬
have been developed and
Whenever we seem on istrators to free them so that
they thority."
pro¬

sound and Unworkable
more

crippling hmehdments'*—what J
ply the
and think he realty means is "No in¬ with ho

photography

extravagant Black Markets.
The
tryipg to sell con¬
recommendations

J Chester Bowles, through his un¬ misleading,

the

his propaganda has been
stripped
of
its, color

organization, spent two Congress

his

and

however,

Meriden

* Dated- May

is. i9«.
FRANK O'BRION,

Cashier.

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, June 20, 1946

Says Labor Policy
Fosters Inflation

Foreign Securities

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Full text of Commercial and Financial Chronicle : June 20, 1946, Vol. 163, No. 4500, Section 1

FRASER