Full text of Commercial and Financial Chronicle : June 24, 1948, Vol. 167, No. 4710

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JUN

t ■/
:J

' i

BUS. ADM.
LIBRARY

ESTABLISHED 1S39

Reg. t7. S. Pat. Office

Volume 167

Number 4710

COP Plalfoim
By A. WILFRED MAY

New

York, N. Y., Thursday, June 24, 1948

Price 30 Cents

May at Republican Conven¬
tion analyzes fiscal, economic,
and foreign planks of Platform.
Reports Taft's and Dewey's atti¬
tudes

indefinite

and

rency

toward

other

cur¬

controversial

planks; and Dewey

having

un¬

orthodox and flexible concept of
government intervention.
electorate

ing

what

well

may

wonder¬

Republican victory
will bring to it in various spheres

Director, Industrial Relations Research, Carnegie-Illinois Steel Corp.

Leading steel
dustrial

economist, noting recent

company
to

concerns

cut

factors such

level off and future wage

Does

present

look for

not

wage

rises must

produc¬

on more

sudden

break

prices, contending

post-war conditions differ, from those following
War I.
Sees end of inflation spiral
approaching.

On April 22, 1948, the United States Steel
Corporation made a
historic announcement to the effect that
price cuts aggregating many
millions of dollars could be made and at the same time stated it

interest

had said

"no" to the third round
wage demand.
call a halt to

hardly shared
in

the

ticket

party's

the

choos¬

spiral

ing circus.
This
sion

this

tee

Chairman

important

Lodge.

document,

This

all-

presumably

the next Administration's guidepost during the next four years,
was
accepted without a single
question by the unanimous vote
of
M

the
:

still

unweary

(Continued

PICTORIAL

See

delegates,
38)

on page

SECTION

for

pictures taken at the Convention
of

the

Investment

Dealers

Asso¬

Day

the

Bond

Club

XAnover 2-0000

Chicago
Geneva

•:>;■■■■■

Teletype NX 1-210

Cleveland

Londoa

(Representative)

thosewho

We See

address

the

National

Association

30 Broid

;

(Continued

strikes of fel¬
low

workers.

invol¬

Truly

STATE

AND

means

Buffalo

(Continued

Harrisburg

Woonsocket

30)

page

30)

„

, .

Municipal

MUNICIPAL

Bond Department

ST., N. Y. 5

Bell

Teletype

Private

Springfield

Washington, D. C.

HART SMITH & CO.
52 WILLIAM

OF NEW YORK

Scranton

Wilkes-Barre

on page

BONDS

Syracuse

■

continuously rising

Bonds

1927

which

State and

PHILADELPHIA

Albany

Bond

Dept. Teletype: NY 1-708

Banks,

New York

Wires

THE CHASE

HAnover 2-0980

1-395

Connect

Montreal

Toronto

NATIONAL BANK
THE

CITY OF NEW YORK

Brokers and Dealers

CANADIAN

UNITED KINGDOM
.

(

BONDS & STOCKS

New

England

Public Service Co.

(Fundings)

Distributors of Municipal
and

Bought—Sold—Quoted

•

Analysis

upon

request

Corporate Securities

OTIS & CO.
(Incorporated)
Established

Street, New York 4, N. Y.
Tele. NY 1-809

precisely in what degree these statements and

THE NATIONAL CITY BANK

BOSTON

Troy

INVESTMENTS

Tel. WHitehall 3-2840

street

Street, New York 5

INSTITUTIONAL

thrown

the

found in the fact that it would be very difficult to de¬
termine

R. H. Johnson & Co.

64 Wall

difficulty of the situation and one of the most
unfortunate aspects of the current state of affairs is

4s of 1960-90

Gordon Graves & Co.

The

For

request

benefits, or
are
changing
their jobs, or

terest has centered in candidates rather than in issues.

•

be¬

Underwriters and

va¬

are

32)

page

Dr. Field

PORTFOLIOS

Information

[ take

with

cation

Obviously enough, things political are developing in
ly orthodox fashion. Both professional, and popular in¬

companies, but it is quite

(Continued

BANK

Analyzed and Appraised

extra

—

of other

INVESTMENT SECURITIES

St., New York 4, N. Y.

—-

Established

and other Exchange$

■

ployables,

"platform" of the Republican Party is typical. Possibly it untary unem¬
Corp. was fol- had to be since the
party itself is so definitely divided on ployment
lowed
by some of the most vital of the
inability to
Dr. Kenneth Field
questions upon which this
much
of
the
Dr.
Melchior Paly!
get a job even
document was obliged to make some kind of declaration. On
steel industry,
below current
The general
philosophy was the assumption that the Democratic Party selects President rates of pay
is virtually non¬
adopted by many other industries.
Truman as its standard bearer, it would appear more or less existent. We have ho unemploy-;
The General Motors
Corp. has re¬
unavoidable that the platform of that party endorse what menLtoday in the sense in which
cently granted certain wage in¬
that phenomenon used to be evercreases on the basis of a
he as its titular leader has been doing and saying during
cost-ofpresent in capitalistic society, not
living formula. It is yet too early the past two or three years. Indeed, whether the platform even to a moderate extent. Conse¬
to judge the impact of this new
so endorses it or not, the party
would, one would ordinarily quently, as a rule, additional
workers can be hired only by lur¬
departure upon the wage patterns suppose, be held responsible for it.
ing them out of other work

fore

25 Broad

per¬

Steel

Foremen, Regional Industrial Con¬
ference for Northwestern Penn¬
sylvania, June 19, 1948.

Hirsch & Co.

labor force

three-quarters million level in May; It con—1
—<j>sists of unem- '
" •"

Wanted: Mandates This Autumn

United

States

*An

Membcrt New York Stock Exchange

and

substan¬

the

Lithographing Go.

one

JLos Angeles.

Havana

at the

was

/ The
prece¬
dent,' set
by

ciation of Canada and the Annual
Field

—

(boom-time)

nowhere near normal; still

was

want

tial group, in
the country.

platform

tions'Commit¬

less

But it

winter, out of

near-normal

any

tude toward

expounded
Resolu-

centage of unemployment.

spi¬

that

interests

sounds like

so,

ral

here

May

half million jobless last
or

prices—a

been

morning
by
the delegates'
lethargic atti¬

A. Wilfred

millions

EDITORIAL

not in the best

was

and

reinforced

the

The intent

Two and

wages

conclu¬

has

upward

World

January,
1949; but such
is

wage agreement as "inflation by
intensifying inflationary spiral, while pretending
to dispense social justice and economic flexibility. Says determination of wages by index numbers is dangerous, and what matters is.
not wage rates, but actual wage earners' earnings. Concludes
prob¬
lem today is not to safeguard purchasing power of wages, but to
check basic element in wage-price spiral.
:

situation in money

and like. 1 Holds
increases be predicated

Palyi attacks General Motors

escalator" and

move

wages

tivity.

Dr.

of large inprices, discusses outcome of this action

in relation to present economic
and banking, agriculture,

Visiting Professor, University of Chicago

.By KENNETH FIELD *

after

MELCHIOR PALYI

Economist, Central Life Insurance Co. of Illinois

PHILADELPHIA, June 23—The

Copy

Economic Conditions
Inflation by Escalator
And the Price Level
By

Mr.

Est.

1899

New York

Chicago

Columbus

1896

Members New York Stock Exchange

CLEVELAND
Cincinnati

SUTR0 BROS. & CO.

Denver

Toledo

Buffalo

Dominion Securities
Grporation

Members Neu) York Stock Exchange
and

40 Exchange Place, New

York 5, N. Y.

120 Broadway, New York 5
Telephone REctor 2-7340

ira haupt&co.
111

other Principal

WOrth 4-6000
Bell System

Teletype NY 1-702-3

Boston

Exchanges

Broadway, N. Y. 6
Teletype NY 1-270#

Telephone:

Enterprise 1820

COMMERCIAL

THE

(2742)

Thursday, June 24, 1948

Strengthening U. S. Economy

Air Products, Inc.

Alabama &

By HON. CHARLES SAWYER*

McDonnell Air Craft

Secretary of Commerce
1

■

Asserting

Hydraulics, Inc.

'«*.'«<

Greer

CHRONICLE

FINANCIAL

- *

•

" * V"

' '''

Louisiana Securities

single thing is of greater importance to Americans today than that their business system
freely and efficiently; newly appointed Commerce Secretary analyzes moves

should continue to operate

nation

as one

New York Fanseatic

•.

foreign trade and relieve shortages,; but warns we ;can no longer consider;
of inexhaustible natural resources. Says present economic pressures spell danger of inflation, and warns against American complacency.
- ;
'

and build up

to maintain

Bought■—Sold—Quoted

Bought—Sold—Quoted

;

I left Cincinnati to accept president Truman's offer of the position as Secretary of
that thework of the Department of Commerce is vital
to the national welfare. It is vital because its primary function is to help American busi¬
ness, and I am
:
f
.
; '•
. -.
~ ~~
~~
~
;

Corporation
120 Broadway, New

York 5

Teletype NY 1-583

7-5fl«0

BArclay

Commerce because I was convinced

those
believe

the

that

nomic

essential to
successful

•

*,'•* •'! -Y "

war;

HC PONNELL & A).
Members

J'.-jX

Tel. REctor 2-7815

aid

Central States Elec. (Va.)
Common

'Lonsdale

Co.;'?';!

♦Prospectus on request

Frank C. Masterson & Co.
Established
Members New

1923

York Curb Exchange

NEW

8T.

WALL

Teletype NY 1-1140

YORK

while these

have an interest

HAnover 2-9470

particular area,
all business groups and inter¬
in all parts of "the country.
of

men

but

ests

one

any

what

Federal Water

that

continue

should

capacity.
It is

•

exaggeration to

Ass'n

say

that

trade

maintain

economic

For

Head

Office:

26,

Colony,

help in

find

existence of

The

Bank

and

conducts

prosperous

American

cise of

also undertaken

we are

that

the

:.':V

sure

that

it is

our

our ex¬

directed to

and

uses

our

export

eration of

the

away

of critical

America, Cincinnati, 0.,<

ma¬

our ex¬

to the

operation is keyed

unhappy fact that

many

fittings and. valves,
position

Importantly from

expanded

(6-30-47)

Net current assets

per

relief program

HAncock 6-8200
N. Y.

Telephone

Teletype BS 424
CAnal 6-8100

British Securities and
South African

■

much

detract from

Bldg.

PITTSBURGH

Again!

Here We Go

the past two.
months on TOKLAN ROYALTY CORP.?
That stock
is now listed on the
New
York Curb Exchange and shows a profit
to all who acted upon our suggestion.
Remember

that

now

our

have

writeups

low

another

believe is behind the

priced oil
market:
~

Monarch Royalty Corp.
Class "A"

Selling around $1.50, 1947 net profits
were
750%
higher than previous year,
while current assets increased over 100%
and

expenses

reduced

were

than
dividends

MONARCH has paid
since 1934, except

15%. "
each

year

1940 and

1941.

The urgency in respect to

steel

beyond the matter of our ex¬
ports.
To' make steel we must
have scrap, and the scrap problem

Statement

and

data available.

goes

America

critical.

daily becoming
Our present pro¬

S. R. Melven & Co.
125 Cedar St., New
WOrth 4-7786 '

York 6, N. Y.

Teletype NY 1-570

duction, of steel cannot be main¬
unless

other

sources

Some of the

utilized.

need must

come

from

battlefields of the devastated

areas

Some

Europe

months

ago

Royal Bank of Scotland
Incorporated by Royal Charter 1727

the Pacific,

and

committee

HEAD OFFICE—Edinburgh

Bronchos throughout Scotland

are

available

that

tons

normally

Germany

scrap

Telephone BArclay 7-0100

The

Smithfield, E. C. /

Charing Cross, S. W. /

64 New Bond Street,

W. I

now

are

sub¬

•'

freight

car

situation

•

I TOTAL ASSETS

£141,823,667

Associated

American railroads shows how the

T«khm» NY i-«7»

Bishopsgate, E. C. 2

Burlington Gardens, W, /

the steel mills of this country.

NEW YORK 6, N.Y.
-

aside

available

8 West

stantial portion of it available to

Exchange andOther Principal Exchanges

115 BROADWAY

reported that

working with the Army in an ef¬

Goodbody &. Co.
Members N. Y. Stock

LONDON OFFICES: ; ;

Departments, the Army and

German steel mills.^ We

Securities

».

■

GENEVA, SWITZERLAND

the other hand, if we

fort to make that scrap or a

31 Milk St., Boston 9, Mass.

N. Y.

DETROIT

CHICAGO

abroad.

millions

du Pont, Homsey Co.

YORK

NEW

delay

involve

strength and make it im¬

our own

from

(6-30-47) $9.60

Current Price about $8.00

and

possible for our country to meet
its obligations either at home or

there

Canadian Mining

aircraft

$19.44

little,

tion in Germany and

Canadian Banks
value

Members
•
Exchange

York Stock

Cotton Exchange

N. Y.

industry surveyed the scrap situa¬

Canadian Industrials

benefit

program.

Book

•

;

representing the State and Com¬

Manufacturing complete line of pre¬

too

send

merce

We Maintain American Markets For:
couplings,

;

in¬

send at the tem¬

recovery

ourselves

1856

and other leading exchanges

transporta¬

on.

too

send

European

Common Stock

Company

Quoted '•••'>

—

most important

porary'expense of our own needs.

the

Appliance Company
cision

very

Sold

H. Hentz & Co.

which

—

—-

Established

ma¬

And steel is in
short supply. What steel we

tion, and

scrap

entire

Bought

man¬

construction

the

automobiles,

dustry,

industrial and

commer¬

•'

basic to the op¬

our own
—

are

Producing

.Commonwealth Gas

in point, v

Europe

steel is also

scrap

This

Tele. NY M610

Southwest Gas
1:

expansion of capital

industries

tained

own

t Southern Production;

in high gear.

case

eration of

port program does not deprive us

cial prosperity.'

39 Broadway, New York

DIgby 4-3122

European production.

of resources which are essential to

by Secretary Saw¬
Advertising Fed¬

June 14, 1948.

undertake to prevent

draining

our

before

Exchange

?Chicago Stock Exchange -/

that it is basic to the res¬

means

proper

overseas.

handling of

our

the

and

indefinite duration and very great

handicap,

exer¬

control over

terials, and to insure that

position of world lead-

*An address

The Parker

our¬

Office of In¬

our

and not

economy

destinations

We often remind ourselves that

yer

concern

■

description

every

proper

and

XJ. S. Leadership Has Economic

exchange business

also

econ¬

Bases

and

equipment

send abroad

.today,

port trade is actually a help to

licenses,

Trusteeships and Executorships

markets for

meeting that obliga¬

are

must

exports to make

Through
omy.

New York Curb

Steel is fundamental to the res¬
toration

expense; on

strong, productive

trade,

possible

traders.- Yet

free,

ternational Trade—with the

but

possibility

field, to reduce

expand

selves—through

£2,000,000
£2,500,000

Fund

banking and

and

Zanzibar

Capital

tion,

any

withdrawal,

very

exten¬

every way

overseas

while

peaceful world is based upon the

Bishopsgate,

Subscribed Capital___-£4,000,000
Reserve

the

India,
and

Paid-Up

because

and

the

a.free flow

own

Burma, Ceylon, Kenya
Kericho, Kenya, and Aden

priority

economic

our

be kept

Take steel as

own

the opportunities

;

Exchange

New

;

But

and to

illusive security

creating and maintaining

London, E. C.
in

and

Members

„■

domestic economy.

which
can

toration

barriers

Kenya Colony and Uganda

Branches

isolation

our

years

worked

the foreign trade

robust

own

many

has

that

strength: not from

desire to seek
in

its

viial

We all

healthy for¬

sound,

today—to itself and to the world

Government

price

our

—is

the

■

New York Slock

gether; in fact it is one problem.
It can be approached effectively
only by a careful examination of

informed

responsibility

gravest

Teletype—NY 1-376-377-378

industry.

sively to keep American business

effi¬

smoothly,

freely,

America's

Bankers

our

own-resources

Department

ciently and at the greatest possible

Members

of INDIA, LIMITED

controls in

chine

eign

today than that their busi¬
system

operate

NATIONAL BANK

imposition

our

prosperity.

responsibility. No single thing

ness

Dealers

agreements

hoped that by voluntary
agreements we could avoid the

ner

know

will be based upon

icans

Security

Congress

was

motion of foreign trade.

is of greater importance to Amer¬

Troster,Curries Summers

untary
It

work in connection with the pro¬

emphasizing that point be¬
assure you that
I shall say and do, during

my.tenure of office as Secretary

& Gas

,ago

The complexity of our problems
is illustrated by the Department's

I want to

of Commerce,

York

b.e£in at home.

must

I am
cause

New

whole is to

months

passed what is known as Public
Law 395, which provided among
other things for the so-called vol¬

Department is endeavoring' as
recover, from the war and build
for a better future, bur great eco¬ faithfully and rapidly as it can to
make this program effective.
We
nomic strength must be main¬
are meeting continually with
in¬
tained and our productivity must
be still further developed and ex¬ dustry advisory committees to de¬
termine what important products
panded.
i
,
v;
are in critical short supply, what
;In meeting its. responsibilities
manufacturing -bottlenecks exist
in regard to the problems of Amer¬
and what agreements in industry
ican business, the Department of can
remedy the situation,

Hoving Corp.

Some

branch offices

our

•'

•

The

;

if the world

;

Detroit Int'l Bridge

and

Sawyer

two

of course

;

are
Charles

If we at home
to raise our standard of life,
pressure.

Direct wires to

supply.

Departments do
in busi¬
ness, their primary concern is in
other fields.
But the Department
of Commerce, as its name, implies,
deals directly and primarily with
commerce—with business. In the
statute creating it, the Department Commerce has to deal with an ex¬
f The
problem of shortages which
was charged with the duty to fos¬
tremely complex situation. ' Do¬
occurs
throughout our domestic
ter and promote foreign and do¬ mestic problems and policies in¬
mestic commerce, and as the Sec¬ terlock with foreign problems and economy is equally pressing over¬
seas
and
frequently
the
same
retary of Commerce my chief re¬ policies, and we must keep clearly
shortages .exist
at
home
and
sponsibility is to help business and in mind the fact that prosperity
abroad. Our foreign and domestic
businessmen, nof any. one kind or is like'charity in" one respect, as
problems are inextricably tied to¬
group, and not just the 'business¬ as far' as we are concerned—it
and

;

nomic

great sectors of our economy;

the

world, for those who

under dire military and eco¬

are

Department of
Agriculture,

New York Curb Exchange

BROADWAY, NEW YORK 5

120

and

the

all

defense,

first line of

across

partment
Labor

New York Stock Exchange

;

De-r

NY I-15S7

New Orleans, La.-Birmingham, Ala.

most need

unpar¬

tion to all of those devastated by

governmental
We

systems.
have

not

us,

American prosperity and pro¬
ductivity at this time are a protec¬

and

St., New York 4, N. Y.

HAnover 2-0700

Voluntary Agreements in Industry

comes

alleled economic

operation of
our
social,
economic

which

productivity — our
strength.

mense

the

Prospectus on Request

materials

and

today are in very short
That fact also affects the
work we do to help domestic com¬
merce
and industry.

base.

merely because of our free insti¬
tutions and our democratic prin¬

business

goods

the

America and the rest of the world

ciples, but also because of our im¬

suc¬

of Amer¬

ican

Bought——Sold——Quoted

that world leadership has an eco¬

cess

Lonsdale Company

Let us never forget that

ership.

who

Members New York Stock Exchange

25 Broad

one

Steiner, Rouse & Co.

'}!

(Continued on page 36)
>. a!-, it c' i i.ii, * i.j.J

Banks:

Glyn Mills & Co.
Williams Deacon's

Bank, Ltd.

Volume

167

Number 4710

THE

COMMERCIAL

FINANCIAL

CHRONICLE

(2743)

INDEX
Articles

■

and

News

Economic Conditions and the Price Level—Kenneth Field-Cover

General Motors

as
B. S.

A Market Forecaster

_____iJ_„___Cover

Strengthening U. S. Economy—Hon. Charles Sawyer

General Motors

Page

Inflation by Escalator—Melchior Palyi

By STEPHEN J. SANFORD

AND COMPANY

DARK HORSE

as a

Market

Forecaster—Stephen J. Sanford_

"Dollars and Sense"—Orval W. Adams
The

Keyserling

850-Billion Dollar Question—Leon

Wall Street Analyst

Commenting

Federal Reserve Survey of Consumer Finances

—Duncan

Holthausen___i

McC.

__J_

Economic Trends and Interest Rates—Thomas E. Love
joy, Jr.
The Job of the Business Forecaster—Charles O.
Role of the Family

Hardy™

how

The Crisis in American Life—Herbert Hoover™_______'

A Republican Party

Platform—Hon. Dwight H. Green__

Needed:

National

—Thomas
Canadian

Gairdner

Improving Professional Status of Investment Dealers
—John B. Ridley
;
*

ful
22

Hal H. Dewar Nominated to Investment Bankers
Association of America

Congressman Howard Buffett 'Offers Bill to Create,
Monetary Commission
j

corded

riod,

Investment Dealers Association of Canada Elects
Ryan
2: President at Annual Meeting________

SEC Charges Dealer With Fraud-

period

Reed-Bulwinkle Bill Approved Over Truman's Veto

Brooklyn Chapter of NACA Participate in Nat'l Conference- 29

As We

See It (Editorial)

__V_

____.

better

Bargeron___2

dustry,

Notes

! News About Banks and Bankers^

Observations—A. Wilfred May

____________

Securities Salesman's Corner__________

_____

Securities Now in Registration

.The State of Trade and Industry

Published

on cover

Twice

*/,»., •i'vj--rVj•l

page.

COMMERCIAL

Domini mi

Reg. U.

WILLIAM
25

Park

$25.00

York

$25.00

N.':'.Y.

WILLIAM

DANA

SEIBERT,

;

.'Every Thursday
vertising issue-)
plete statistical

(general

and

every

issue

—

i Other

Offices:

135

and

news

Monday
bank

S. : La

ary

25,

York,

1942,
N.
Y.,

the

under

post* officp
the

Act

Possessions,

United

Territories

Fan-American

Union,

York

U.
Members

per

the

rer

General

years,

ahead

funds.

months

period,

often

but

first

debacle

•

Broadway

System Teletype N. Y.

1-714

Metal

con¬

1929.

that

This

10%

General

year,

Forming

Corporation
BOUGHT

—

SOLD

—

QUOTED

FIRST COLONY

accounted
the

that

for

CORPORATION

total

day.

52 Wall St.

Tel. HA 2-8080

business

The

New York 5, N. Y.

Tele. NY 1-2425

news¬

next morning carried sto-'

the

the day,

Bye

$4.25 New Preferred

cynic to suggest the possib;lity
that these interests may have been
the heavy sellers, and the public
the buyers. Despite churning, the
a

stock

was

Approximate Price 46
To Yield

able to duplicate

never

Four

months

later, on July 21.
General Motors was selling at 68
Here was the definite signal—the
bull

market

not until

did

the

over—although

was

Sept. 3,

6 weeks later

establish

market

time peak of 381.17
Jones Industrials.

its

all-

share.
Earnings cover dividend
quirements by wide margin.

per

is the only
ments

re¬

on request

George Birkins Company
40 Exchange Place, New York 5
WHitehall 4-8957

Tele. NY 1-1404

::V':■
the depths

required less than three years, so
that on June 30, 1932, we find the
stock selling at the ridiculously
low price of 7%. Only five weeks
later, on. July 8, the averages hit
a

Description

•

in the Dow-

From the heights to

bottom with

9*4%

Senior obligation (no funded debt) with
preference as to assets to extent of $110.

better this price again.

mark of 41.22. This

LAMBORN&CO.,Ine,
99

WALL

STREET

NEW YORK 5, N. Y.

instance, of the move¬

under consideration,

the time element varied

whep

substan¬

SUGAR

tially from the four-month period.
The

The next logical step is.to deteiv
when the stock is makinf

United Piece

closed off on
and recalling pool prac¬

The stock

buyers.

- '

Bell

tices of that era, one need not be

likewise recording its bear market
lows before the same set of aver¬
ages.

1908

2-4500—120

papers

fundamental

Dow-Jones Industrials and

major bull

'30s culminated

market of the

Raw—Refined—Liquid

March 10, .1937,
closed at 194.40.

Exports—lm ports—Futures

mine

when the averages

these

Four months earlier, General Mo¬

highs or lows. In any bull
market, issues establish

bear

new

peaks

enjoy

bottoms

one

month

technical rallies, and then
previous marks the next.

had

tors

signalled this by reach¬

DIgby

ing its high of 77 on November 9,

4-2727

1936.

surpass
,

CERTIFICATES

Bond & Mtge. Guar. Co.

(Continued

29)

page

year;

offerings of

Stock

Analyses available on request

Spencer Trask & Co.

& Co.

New

York Stock Exchange

Broad Street, New York 4
Tel.:

Exchange

HAnover

2-4300
^

15 Broad

St, N.Y. 5

Bel)

WHitehall 4-6330
Albany

Teletype

IVY

1-2033

Common

Miles Shoes, Inc.

Members

York

Winters & Crampton Corp.

PREFERRED STOCKS

Prudence Co.

New

High Grade Public Utility and Industrial

Lawyers Title & Guar. Co.l

S.
of

interested in

are

Lawyers Mortgage Co.

Member*

and

New

Newburger, loeb

States,

$35.00

fluctuations in

New

Subscription Rates
in

extra.)

March

1879.

Subscriptions

Monthly,

N. Y_ Title & Mtge. Co.

Dana

second-class matter Febru¬

the

—

regula¬

consistently beer

weeks

made

Salle

ad¬

clearings,

exchange, remittances for for¬
eign subscriptions an'1
tlsements muct

(com¬

quotation

St.,
Chicago 3, I)). (Telephone: State 0613);
1 Drapers', Gardens,
London, E. C., Eng¬
land, c/o Edwards & Smith.

Reentered

account

■'

postage

REctor

William C. Durant had been heavy

past

Established

Members N. Y. Security Dealers Assn.

TITLE COMPANY

1948

market

records, corporation news,
g(ate and city news, etc.).

postage- extra.)

Record

(Foreh-n

the

J.K.Rice,Jr.&Co.

much

the

are

Pfd.

ries that interests associated with'

market, establishing its
bull market highs well in advance

President'

WILLIAM D, BIGGS, Business
Manager

Thursday, June 24,

year.

the

general

year.
■

the

months

.„(j.

Record—Monthly,

(Foreign

Earnings

per

the' rate

HERBERT D. SEIBERT, Editor & Publisher
V

Publications

Quotation

year.

Note—On

;

.'2v-.2'v

REctor 2-9570 to 9576

and
per

Monthly

COMPANY, Publishers
New

Other
Bank

Patent Office

DANA

Place,

"t->y '

vj,

Canitda,
$38.00
per
Countries, $42 00 per year.

and

FINANCIAL CHRONICLE
;

■

Weekly

Other

The

over

accuf-

Motorfe

stringent

Motors stock has

General

Its movements

solely,

In
34

Washington and You

the market bell¬

Tomorrow's Markets (Walter Whyte
Says)

watch

stock

Finishing Com. & Pfd.

law -of supply and
demand.
A
large buying or selling order by
an
investment trust that might
influence quite definitely a thin¬
ner issue, can have only tempo¬
rary influence on a giant of this
paagnitude.
' '

Railroad Securities

*See article

suit,

business of

present

tions.

S3*

Prospective Security Offerings..
Public Utility Securities

transacted

aid

Com.

U. S.

reached a peak of 91%
day when trading on the
Exchange nearly reached the 4V2
million share mark (trading the
previous day had surpassed 5 mil¬
lion
shares).
The turnover
in
General
Motors
was
extremely
large,
452,700
shares
changing

for

boasting

seeking

Dorset Fabrics

United Piece Dye Works

Motors

with

under

Governments

splashed

the

March

mar^-

44,022,000 common
shares outstanding, held by some
405,000 individuals and institu¬
tions, certainly could never be
manipulated by any coterie of
traders, no matter how powerful,

Mutual

Our Reporter

sider

the

four

neatly whipsawed.
Historically, let

wether and to forget the services.
-This colossus of American in¬

Indications of Business Activity__

NSTA

re¬

bearish, al¬

fortune would do

common

.___

established

patience-trying

pe¬

times

half

are

difficult

cmulating

From Washington Ahead of the News—Carlisle

pages

Investors

.Canadian'Securities'20*

Einzig—^'Marshall Plan Uncertainties"—

Federal Water & Gas Corp.

insurance against being misled by
a
false move or jiggle and being

than

rather

Coming Events in the Investment Field

been

hands.

Cover
10

Dealer-Broker—Investment Recommendations

four

year

4-6551

This

suc¬

of the

occupied by bear

was

nancial

____i

has

large advertisements
the phenomenon.

Stocks__L___

and Insurance

low

weeks and months afterward with

Regular Features

' -r

bear

markets, the same sort
of signal is given. When no new

So rarely is the turn called cor*
rectly by one of these experts (?)!,
that, when it does occur, the fi¬

:i_____V-_______™_ 29

Cuban Bonds Drawn for Redemption

ing.

predict

STREET, NEW YORK

Tennessee Gas Trans. Co.

period of four months, it is a sign
that a bull market is in the mak¬

course

than

cash.

Texas Gas Trans. Corp.

how¬
always be assumed to

is about over and that an

minent.

than

record

for

disclose

during the 15 Vz

spotlight!

important reversal of trend is im¬

Cowles

kets, and stocks at the end were
at only about two-thirds of their
levej at .the beginning.";
j

___________

Invest¬

Of the 6,904 forecasts

though

_____

a bull market to better its
price in the ensuing jour months.
If, at the end of this time, no new
high has been recorded for the
stock, it is a signal that the bull

many were bullish

Canadian Investment Bankers Stress Personnel
Training____ 21

U. S. Budget Surplus About $8 Billion

market.-

"(2)

Procedure for Doing Business

ECA

can

Motors, common,

varying

stock

you

Telephone: WHitehall

have recorded its peak if it is un¬

ago,'the results

cessfully the future

■

may

market

long-neglected

the

Obsolete Securities Dept.

able, in

portfo¬
The results

15% years, fail
evidence of ability to

United Business Service Sees Sustained Business
During
Rest of 1948^

ever,

The records of 11 leading
financial periodicals and services
since 1927, over periods

procedure

General

"(1)

;

bring

can

years.

their

"Your

into

—

Such

success¬

by. Alfred
1

survey
quoted:

were

Special Libraries Association Elects New Officers___

issue

ments" some time
of
a

Communism—or Mere Nonsense (Boxed)__________________ 13

Bank

lucrative,

seeking aid- in the

management of

Arthur Wiesenberger & Co. Plan National Campaign on
Investment Trust Shares,
;

lios, it fail miserably.
are
undeniably bad.

Dean Madden Reports Improved Foreign Debt Service

Under

econo-

uninformed in¬

ancient

out

99 WALL

stock market has for years held

sheets which flourish
perennially,
but as a guide for
vestors

judging by the large number of
advisory -services
and
tipster

stock

last 30 years.-

of the

business

Getting Capital for Small Business—Trevor F. Moore_„.

must

that

So say the Dow Theorists after
all-important question now is—for

one

mists, writers, chartists and ordi¬
nary board-room traders.
As a

Commission

Developments—J. A.

A. M. Strong Advices

The

over

Drag

bull market.

hesitation.

long?

Parkinson

year

now

Monetary

Investment

are

General Motors shares

Forecasting the trend
fascination for
bankers,

Corporate Earnings and the Stock Market—Whitman C. Iiaff 15
Rearmament and the Money Market—Marcus Nadler

ments of

Trust—Mayo Adams Shattuck.j

WINS!

on results of a survey of financial forecasting, Mr.
Sanford maintains investors would do much better to watch General
Motors common stock as a market bellwether.
Analyzes move-

Boston

Members New

York

Curb

Exchange

135 S. La Salle St., Chicago 3

Tel.:.FINancial 2330

■;<

Teletype—NY 1-5
Glens Falls

•»

C. E.

Unterberg & C«.

Members N.

Security Dealers Ass'n

61 Broadway, New York

6, N. Y.

Telephone BOwling Green 9-3565
Schenectady

Worcester

Teletype

NY 1-1666

The 850-Biliion Dollar

Sense"

and

"Dollars

Thursday, June 24, 1948

FINANCIAL CHRONICLE

COMMERCIAL

THE

(2744)

By ORVAL W. ADAMS*
Executive

Vice-President, Utah State National Bank,
City, Utah.

Salt Lake

vr"

"v-/

causing retreat from liberal principles and is

Points out absence of sound money is

;

Dodge of The American Bankers Association, introducing the Antisaid: "As a Nation we are suffering from the diseases arising from
consecutive years of peacetime government deficit financing before the war, the unPresident Joe

and

~~
know

one

notion is that money

ing and enor¬

And some men

mous

expendi¬

tures

since

war.

the

war

By Congressmen and

that

carelessness.
Orval

The
of

econ¬

has been diluted with a flood
of money — there is too much
money
chasing too few goods.
Costs and prices, and the demand
omy

It may

be so, we

I can't believe

,i;:

"Too

have

people

many

ac¬

can

false notion that we
borrow and spend and tax,

and

that this process is good for

the

quired

the

and brings with it

economy,

penalties. We seem to have ac¬
the fantastic idea that a
can
be paid twice as much
for the work he used to do with¬

cepted
man

paying any more for what he
buys. Somehow we have acquired
a
vicious habit of believing that

out

value of money
We have become

the

and

money

does not matter.
so

indifferent to the
debt

and

that

use

of money

should

not

surprised at the results. Now we
begin to see the penalties.
Both
money and debt are having their
'

revenge.

the

alarming symptoms of

inflationary
disease
seriously affects the

same

which

economies
world.

the

Most

believe that

substantial

part

trouble

can

the

rest

Europe's

with

corrected

have

republics

of exploitation.

in this process

politicians of all persua¬
sions are disposed to make public
office a personal, vested interest,
and frequently
political parties
have been built up and
main¬
That

tained by the common

practice of

feeding their following out of the

public
treasury,
giving
little
thought to the vital principle of
sound money — the foundation
which national solvency is
They discover that
contributes to their perpetua¬

upon

maintained.
it

tion

haust

new

jobs

adherents, to permit more
people to fatten on the
public payroll, to make more and

party
and

economically

citizens

de¬

pendent upon the public purse. To
tax, tax — spend, spend — elect,
elect
and by prolific spending
of "senseless" currency they aim
—

combination of sound money and
hard

This

work.

which

is not

tion in

the

formula

its

applica¬

without

United

States."

What he said provides the

fication
say.

for

what

Dollars

longer

justi¬

about

sense

and

are

partners; they have been
;

divorced.
American

bankers

must

know

and teach

specifically:
'
?
That the well-being and destiny
of all peoples center in the pre¬

When

once

office.

is powerful

party

constitutional restrictions
so as to extend its powers, then a
representative republic is trans¬

nullify

into

formed
tual

socialism

dictatorship.

nothing

than

and

Suppose

Congress

even¬

dictator

receiver for

nation gone bankrupt.

people still believe that it is pos¬
sible to get something for nothing,
and would
join in the further

continues

parties,

politics and

partisanship.
That

all

ernments
functions
3:1

;

through

have
at

history, gov¬

multiplied

the

their
of

expense

the

Diseases

Capitalism Can

Remedied

An address by Mr. Adams be¬

an
i

"economy

deficit spending

1)9, 1948.

voters

paternalistic
are

abundance,"

promoted

under

government,

further duped and

the
de¬

The

either.

much today of the
capitalistic exploitation.
such evils exist, and they do
hear

evils
If

and

have,

always

citizens

will

all

welcome

informed
their

re¬

moval, but by wise, just legisla¬
tion. But what we should see to
is

the hoped-for

that

is not

cure

malignant than the disease.
are to retain any vestige of

There

who

would

are

among

some

political

exchange

ignore the historic fact that eco¬
nomic liberty or any other liberty
is

impossible
without
political
liberty. When will the mass pub¬

ency

small matter? It is a
It is the very corner-

sacred thing.

(Continued

page

28)

institutions.

are

domestic

our

problem

central

great,

the

economy

face is whether we can

that we
maintain

constant

rate

we can
of stable

growth over the years, or whether
the peaks of prosperity will again
be succeeded
by the valleys of

even

while it

hardships,

and

headaches

ates

lasts,

headaches

these

all know
hard¬

and

ships are secondary to the prob¬
lem of, whether inflation will be
followed by lasting prosperity or
whether it will generate a depres¬
sion even though a leveling off
plateau period

tween

come

may

upswing

the

swing.

and
4

be¬

down¬

central

This

depending

period,

10-year

upon

would

come

$850 billion.

group

the

have in ironing out

and

tributes

this

all

the enormous

address of Dr.

Keyserling before American Mar¬

keting Association, June 14, 1948.

Stromberg-Carlson Com. & Pfd.
Texas Eastern Trans*

Detroit Harvester

Texas Gas & Trans*

Portsmouth Steel

Bought—Sold—Quoted at Net Prices

New York,

New Haven and Hartford

Railroad

Tidelands Oil

Bought

Sold

Company

First and Refunding

Quoted

Bonds of 2007

*Prospectus on Request

Goodbody <Sl Co.
Members N. Y. Slock

Exchange and Other Principal Exchanges

115 Broadway, New York

Telephone BArclay 7-0100

Central National

Corporation

22 East 40th

Street, New York 16, N. Y.

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

Telephone: LExingtou 2-7300

as a

mensely difficult because neither
analysis
nor
economic
that suf¬
ficiently
clear
picture
of
our
whole economy in operation which
business

science has yet given us

attained

must

that

get

better

Teletype: NY 1-2948

before

than

future

the

There

are

can

work

economy

in the past.

even

has

those who

with great competence

look at the
viewpoint of
the producer or the distributor,
the seller or the buyer, the plant
manager or the labor official. But
economy

from

there

all too few who are ex¬

are

the

amining, from the perspective of
the whole national interest, the

which these segments of

way

It is this

inseparably intertwined.
essential to

which

view

broader

kind

may

they are

because

harmonized

life

economic

national

our

sound wage policy,

price policy, profit policy, or mar¬
keting policy.
first

task

government,

is to encourage and
help to develop this broader de¬
scription and analysis which lies

therefore,

foundation

the

economic

rection.

workable

The

adjustment.

Act
an

This

it,

Em¬

and

1946,

may

best

the
be

effort in this di¬
effort

can

make

progress only if it is
understood, only if it is
a
cooperative effort,' and

measurable

widely
made

only if individuals and groups
throughout the economy recognize

responsibility to help construc¬
without surrendering the
eternal right of fair criticism.

the

tively

would

see

developed

the concept of a
national prosperity budget, which
in broad outline would set forth
the desired levels of employment,
the

years

production and purchasing power,
and
also
depict workable rela¬
tionships among the various ele¬
ments in the economy.
This for
the first time would provide a
tangible measuring rod of the wis¬
dom or unwisdom of specific poli¬
cies in terms of their effect upon
the

ESTABLISHED 1927

consistent

it clearly con¬

the long-run

economy

that we

action

stability
whole.
•
•
But while these principles are
simple, their application is im¬

of the

Aspinook Corp.

sound that

described

swings of the business cycle even
*Excerpts from

not

under

stake

public

make that action

activities

convince

embellishment

when

because other things
equal, we should strive

ployment

This figure needs no

necessary

approximately

seek

increasingly feasible;

second,

fol¬

which of these two routes we
low

therefore

environment in which

and,

over

Crowell-Collier Pub.

should

cultivate

system no less than for our free

problem that I
pose might be called the $850 bil¬
the consent of the governed, we,
lion question.
For if on the one
like our fathers, must stand out
hand we suppose over the next
against any effort to multiply the
10 years the maintenance of rea¬
powers of government. It is this
sonably full employment and provigilance which will prove to be
dinary advances in science or tech¬
the price of our liberty,
niques, and if on the other hand
k: American citizens will not wit¬
we suppose over the next 10 years
tingly accept the establishment a
pattern
of
instability
even
of a totalitarian state in this land.
roughly similar to that between
They will fight it, if they are able 1922 and 1932, the difference in
to recognize it as it creeps upon
our total national output over this

If we

and

this becomes

It is simple to state the general
principles that should guide gov¬
ernment policies in their relation
to
the
economy.
These princi¬
ples are, first, that where other
things are equal private action is
to be preferred to public action

improvement of this blend in fu¬
ture is vital for our free enterprise

that

lic, who hold the voting control,
be made to understand that solv¬

fore the Wyoming Bankers Con¬
tention, Sheridan, Wyoming, June

repre¬

voice

one

liberty for what they imagine is
economic security. In this they

philosophy of

given us the answer.
they declare; that depression. In the final analysis,
that is precisely the manner in our current concern about infla¬
which all preceding democracies tion is inseparable from this cen¬
have destroyed themselves. .
; ?
tral question. While inflation cre¬
repeatedly

printing press cur¬
rency? Suppose that the politi¬
cians in office further practice
the perfected trick of corrupting
the public with "senseless" print¬
ing press money? Suppose that

the issuance of

sacrifice

achieve

Historians, and the wisest polit¬
ical thinkers of all time,
have

them.

;

nothing, that

public prosper.ity,.whether

of the

systematic looting

treasury? What then?

under the attractive

importance,
.

themselves in

enough, by the application
of
such methods, to defeat or crush
its opponents and to modify or

servation

of sound money sense.
That the problem transcends in

entrench

permit unrestricted polit¬
ical despoliation of the national
wealth?
Suppose that many

luded to

to ex¬

rewards for

govern-

realize, that the genius of America
blend

tion

Preferable

Public Action
Leon H. Keyserling

of private action and governmen¬
tal functions without the distor¬

—by Adin Ballou.

of revenue, to

sources

and

to find

office

create

"We have

and lives of
representative
not been spared

property, liberty,
their citizens, and

Action

Private

does

has consisted in the practical

it!

c
■

goods are rising more rapidly
than the supply.
This is inflation.
for

reflects the survival of the fittest.

sentative group of business people

it!

sturdy, retains its world

course

which does

might achieve it—

But, Uncle Sam, I can't believe

remains

everything
and

how

upon

that the democratic manner of life

which

fireside chats.

very

job.
Nothing will have
so large a bearing upon the pros¬
pects
for
enduring
peace
as
whether the American economy

government

may

our

leadership, and thus makes it clear

between

hats,

liveli¬
lives,
well we

domestic

see

middle

be we can keep on spending, x
In ways that have no bitter ending,
f
With money going round and round,
Divorced from anything but sound.
It

•;

strength
our

like rabbits out of

Produced

even

some

can

must earn.

That dollars spent, some one

mag¬

nified

when

perfect sta¬

this

and

camps,

our

but

depend

may

set

and

government in
two hostile

It may be there's some bright solution—
Billions may be but elocution,

and

needs

the

beliefs seem wild—

is but labor's child,
honest being yet,

only

hoods,

some

business

cannot achieve

bility.
Not

note,

v/ant

astronomical.

But as the fruit of toil and sweat;
For I was taught and lived to learn,

about

money,

iiiiiiill

when

find it almost comical,

That money

we
been

careless

the

long pull.

ing

thing and funny,

And has

years

have

paver

know my own

For

the

but

When debts reach figures

govern¬

ment

now

for

It is refresh¬

deficits during
I

years.

government inter¬

topic assigned to me is "The Impact of Government Policy
upon Marketing."
The choice of this topic by those arranging this
meeting indicates a realism and sophistication which should be
heartening to all those currently interested in the welfare of our
economy

and

next 10

over

The

war,

between full and

course

representing dif¬

and instability

functions is vital for free enterprise.

Inflation Program,

the

figure

enormous

vention, stating that blend between private action and government

police government. Urges bankers and insurance men to take active part in education for sound
money restoration and sound fiscal principles.
Scores New Deal spend.ng philosophy and calls for end
of mania for incurring debts and perpetuating deficits.
Wants gold standard restored.

deficit financ¬

Vice-Chairman, Council of Economic Advisers

Pleads for middle

leading

Question

KEYSERLING *

ference between full employment

avoidable *—

Government economist cites

Asserting dollars and sense are no longer partners, prominent Western banker warns unless sentiment
is aroused to effect an economy program, tax burdens and inflation may destroy our capitalistic sys¬
tem.

LEON

in general.
Such a
prosperity budget would
guide and not a command;

economy

national
be

would be forced upon no

(Continued

on page

39)

one;

Volume 167

Number 4710

THE

COMMERCIAL

e
Steel

The

FINANCIAL

CHRONICLE

Federal Reserve

Production

By DUNCAN McC. HOLTHAUSEN*

Carloadings

State of Trade

Commodity Price Index
Production

1947

Business Failures

•«

x.
The

■

picture of industrial production last week was a
with output for the most part
comparing well with

one

that of the

corresponding period of last

year.

closing of the schools and colleges

made

for

increase

in the labor force and
employment and payrolls as a result reflected
some slight
increase in the week.
With respect to raw
materials,
be prompt, but order

shipments for the week continued
backlogs, on the other hand, while they
large in some lines, were generally somewhat under

remained very
the level of a year ago.
:
With demand for steel
Iron

Steel

Institute

far

its

excess

supply, the American

annual

report on the distribution of
steel products for 1947
gives the answer to the question,
"Who is getting the
tonnage?" '
■
«■'
,<>
/
The official figures show no
major deviations from the normal

finished

peacetime pattern

steel

consumption. The automotive industry,
exclusive of tractors,; led all other direct consumers with
8,846,419
tons, or 14.03% of the total.
Other leading consumers in order of

tonnage

construction

were

and

maintenance, containers, rail trans¬
portation, exports and machinery and industrial equipment.
*

/./■';

/V'.' ••"'7'^'1'

Tariff experts of the railroad
industry look forward in the near
to some sort of final action from the Interstate Commerce
Commission on the carriers' plea for

future

higher freight rates.

All but
8% of the series of appeals by the railroads to the Interstate
Com¬
merce
Commission for permission to raise rates 29% to assist in

offsetting rising costs
The

review.

equipment and labor have been approved.
is being held open
by the Commission pending its further
; 7/v •
.7/
7'7...? '■

case
:

survey

finances, Mr. Holthausen reports a sizable upward shift in
compared with two previous years, but, despite this, there was a de¬

consumer

income distribution

concludes,

over-all

favorable

cline in savings out of income.

The

Analyzing 1948

Price Index

Auto

Industry

Illustrates

use of consumer
finance data for sales forecasting, and
disposing of their liquid assets, it is probable there will be
increasing demand for consumer credit.

units

consumer

are

For the third successive
year,

the Board of Governors of the Federal Reserve System
These annual surveys provide insights
shifting financial positions of consumers; their purchases and plans to purdurable

has sponsored
into the
chase

Survey of Consumer Finances.

<$>-

goods

and

houses;

their

lion

current

atti¬

lion

tudes

and

Of the total number of 48.4 mil¬

fewer

nomic

eco¬

all,

nancial

upward shift in the in¬
distribution. In relation to

during a period such as
1935-36, current levels are phe¬
nomenally high. No more than 6.5

Con¬
Fi¬
McC.

Holthausen

Sur¬

million

units

had

consumer

in 1935-

in¬

veys are conducted for the Board

comes

by the Survey Research Center of

36 and 33

the

had incomes of less than $2,000.
About half of all spending units

University of Michigan. They
based

are

3,500

approximately 3,000

interviews

geographic

The

million

units

consumer

tween 1946 and 1947. Within

distributed

throughout the nation.

$2,000

reported increases in income be¬

(taken in 66

areas

occu¬

pational groups about three-fifths

represent 81.5% of total operating revenues, the Association
of American Railroads last week estimated that railroad
operating
revenues in May, 1948, increased
9.7% above the same month in 1947

ple for the survey is selected by
the method of area
sampling, and
sample
points
include
the
12
largest metropolitan areas in the

of the skilled
and
semi-skilled
workers and about the same
pro¬

The estimate

country

Based

advance reports from 82 Class I railroads, whose reve¬

nues

covers

operating

only, and does not take into

revenues

account substantial

increases in operating expenses that have taken
as a result of increases in wage rates and
Estimated freight revenue in May, 1948, was greater

place since May, 1947,
material prices.
than in May, 1947,
creased

7.8%.
7:
"

by 12.6%, but estimated passenger

•

revenue

de¬

and

counties.

portion
and

Dif¬

Senate

Committee

hearing

major railroads.
two

groups

erators,

not

terviewed

the

involved in the

present

dispute with the

v
The soft coal dispute found the President on
Friday, last, for
the second time this year handed the
responsibility for heading off
a nation-wide soft coal strike.

who

settlement and turned the problem back to Mr.
Truman,
act quickly and name a fact finding board in

expected to

keeping with the Taft-Hartley Act to report on the dispute between
John L. Lewis, United Mine Workers
head, and the mine operators.

come

because

milies

individuals.

methods,

however,

nances

well

many

7.'v'*j,
At

beginning of 1948 per¬
holdings of liquid assets ex¬
cluding currency (i.e., government
bonds, checking accounts, and sav¬
ings accounts) amounted to about
$130

crease.

than

dollar

enthusiastic; but there

volume

retail

trade

in¬

was

AT MODESTLY

CURRENT

indication

this

first

their

incomes

the

beginning

soon—either

that

the

may

also

way.

(Continued

stored

page

25)

coal

results

show

that

fourth

part

all

than
1947, but this
really a reflection of con¬
sumer willingness to spend freely
as many consumer upits drew on
liquid assets or used credit for

was

the

than

smaller

con¬

Consumers

Optimistic

Regarding

Incomes

Most spending units were still
optimistic about the future. The
great majority expected their in¬
in 1948 to be

comes

least

the

same

buying plans of
consumers? Did they reflect this
financial well-being and this gen¬
eral
optimistic tone? For con¬
sumers

"yes."
as

whole, the answer is
the beginning of 1948

many consumer units planned

buy

automobiles

selected

and

other

durable

beginning

goods as at the
1947.
There
was

indication of

some

a
drop in the
prospective demand for new cars

(Continued

38)

on page

Brown

tial

increase

the

Company

Minnesota & Ontario Paper Co.

was

Electrolux

Corp.

one-

by other spending units.
During 1947 there was a substan¬

discuss

*Prospectus

number

HART SMITH & GO.
52 WILLIAM ST., N.
Bell

.1 '

Y. 5

Teletype

Private

New York

Wires

HAnover 2-0980

1-395

Connect

Toronto

Montreal

dissavers with annual incomes of

$3,000 to $7,500.
The

financial

sumers,

the

status

summary,

beginning of

con¬

strong
1948. Money
was

incomes and liquid asset holdings
v/ere
at peak levels and widely

MOTOR

«R

CORPORATION
Common

Price
Prospectus

Stock

$1 per

Shore

myty

request

FREDERIC H. HATCH & CO., IHC.
Established
MEMBERS
63

SECURITY

Wall Street. New York 5. N. Y.

times.

prosperous

higher

in
1947, and
continuation of

expected

many

Bought—Sold—Quoted

the

and will burst

the

amounts

American Maize Products Co.

impasse

that

purchasing

durable goods.

*Lonsdale Company

purpose

sumer

spending units and

somewhat

Kingan Co.

little

spending

would

Time Inc.

HIGHER TREND

week

resentment of the coal miners will be
.

spent

v:;

the

Findings of 1948 Survey

WEEK

injunction against the United Mine Workers

settled

actually

sizable

saved

should

financially

all

units

heavy dissaving (i.e.,
expenditures in excess of income)

nance.

coal may be lost.
But what really is upsetting to the steelmen is
the unfortunate position they must
occupy until the whole coal con¬
troversy is settled once and for all with a new contract, according
to "The Iron Age," national
metalworking weekly, in its current
review of the steel trade.
*
v

had

still

further decline in the amount

holdings, saving out of income,
and housing expenditures and fi¬

If any steel
company has managed to build up a little coal stock
in recent weeks, the miners' vacation will take care of that.
Then
if the government has to go
through the> by-now-routine action of

would

data

survey

groups

Survey

was

widely

1948.

complete information
about liquid and non-liquid asset

STEEL OPERATIONS

There

and

holdings

are

held close to the high level of the previous week and was
moderately
aboye that of the like week of 1947.
Many buyers sought merchan¬
dise for special promotions and mid-Summer mark-down sales.

1947

come

by Father's Day promotions, many consumers in¬
some of the
significant findings of
purchasing the past week. .The total dollar volume of
the 1948 Survey.
retail trade was moderately above the levels of both the
preceding
week and the corresponding period a year
ago. Practically all types
*An address by Mr. Holthausen
of seasonal goods remained in large demand and
shoppers continued
before the American Marketing
to seek moderately priced and bargain merchandise.
/ 7 : Retailers generally continued to ^confine their purchasing to Association, Washington, D. C.,
June 14, 1948.
currept needs during the week.
Wholesale dollar volume, however,

issuing

still

were

saving out of income in 1947

total

indicate that persons in these in¬

creased their

consumers

Sur¬

information

year ago.

FOR

one-fourth

the result of

The

Stimulated

relatively well off

About

that
groups.; It was estimated
spending units with incomes be¬
low $5,000 held about $70 billion
in liquid assets at the beginning

ex-

income

still

distributed throughout all income

sent

slight demand for luxury
Requests for credit and instalment buying continued to in¬
While collections were prompt, they were slightly slower

goods.

1947

consumer

somewhat
units held liquid

assets early this year as compared
to a year ago, total amounts held

pertaining to the dis¬

consumer

While

issues of the "Bulletin" will pre¬

creased somewhat and continued to compare
favorably with that of
a year
ago.
The response to scattered mark-down sales of some
was

tribution

billion.

fewer

Bulletin."

Assets
the

sonal

types of gifts and seasonal merchandise during

the first half of June.

merchandise

Reserve

vey results

reported decreases

Personal Holdings of Liquid

Interview

units

status

What about the

believed

details

and

in income.

consumer

signs of a weakening fi¬
by using up their
liquid
asset
holdings
to
meet
higher living costs during 1947.
Many .spending
units
felt' the
pinch of higher living costs. But.
on. balance,
consumer units were

in¬

consumer

Graduations, weddings and vacations stimulated the
for

increases

being released and this
will also appear in
the June "Bulletin." Subsequent
articles to appear in succeeding

demand

reported

groups

penditqres for durable goods have
already been released to the press
Y77::7'C7Y/7Y7 and will be published in the June
Federal Conciliation Chief
Cyrus Ching relinquished his efforts "Federal

op¬

and
unskilled
workers
than persons in other
occupational

to arrive at

Fewer

A deadline of Aug. 1 has been set for the increase.
are

persons

have been used in all
three surveys. The interview unit
is the consumer spending unit, de¬
consumers

May

showed

sales

self-employed persons, farm

permit
tabulation of many survey results
•nation's carriers, j Y/Y7/77?Y
.;-7; 7/'77 7 .777 on a
family basis also.
;;
' Reports stating that the United States Steel Corporation
planned
A general summary of the pre¬
to offer a 10-cent hourly wage increase to CIO United Steel Workers
liminary significant findings of
were denied on Monday of last week.
Both the company and a union
the 1948 Survey of Consumer Fi¬
spokesman denied such action had been taken.
The

and

larger than 1946 incomes.

issue, while the wage com¬
that
they7 represent
consumer
mittees of the Brotherhood
of/Railroad Trainmen and the Order units
of economic decisions, ac¬
of Railway Conductors the day before, added
complications to the
tions, and plans better than fa¬
situation by voting to demand
p 25% wage increase from the nation's
on

professional

ferent samples, each representing
a
cross-section
of
the
nation's

fined as all persons living in the
v-'-* 7 ■ *
'■
*
*
"-'7777■';Y'
same
dwelling and belonging to
dispute in the rail, steel and coal industries over wages and
the same family who pooled their;
other demands, remained far from settled last week.
In the rail
income to meet their major ex¬
dispute, the Senate on Tuesday of the past week returned the con¬
penses.
Spending units are in¬
troversial Wage-rules problem
to/ management and labor following
a

clerical

personnel
said that their 1947 incomes were

The

,•

A. Wilfred

units

income

nances

article

distributed. Some

come

tions.
The

week's

were

spending

million

there

sizable

condi¬

sumer

See Cover Page for this

under $2,000 in 1947. As compared
to both 1946 and 1945 this was a

their expecta-

tions

with incomes of $2,000 and above
and 17 million units with incomes

and

general

$3,000. In

about

st-

nve

than

units had incomes

consumer

below

holdings,

d i

ment;

1947

incomes of $5,000
above, while about 2.5 million

regard to sav¬
ing, liquid ast

1946 had money
and

s e

units

plans with

a n

"OBSERVATIONS"

spending units, about 2.5 mil¬

sam¬

Division of Research and Statistics, Federal Reserve
System

Trade

Food

and

Survey ol Consumer Finances

Electric Output

Retail

(2745)

DEALERS

teuier &
42

1883
ASSOCIATION
Bell Teletype NY 1-897

Broadway* New

CO.
'

COMMERCIAL

THE

(2746)

FINANCIAL CHRONICLE.

Thursday, June 24, 1943

•

Marshall Plan Uncertainties

Economic Trends and Interest Rates

By PAUL EINZIG

By THOMAS E, LOVEJOY, JR.*
*

First Vice-President and Treasurer

;

The Manhattan Life Insurance Company

Commenting

and their relation to economic
policies of Treasury and Federal Reserve, and concludes balance
of factors point to good business for some time, and that there 'will be a gradual increase in interest
rates.
Warns against over-building by industry and undue expansion of retail credit.
-1

Insurance financial executive reviews recent adjustments in interest rates
trends.

Scores lack of consistency in

economists have been predicting that within six months we are going
to have, not a depression, but a recession.
Perhaps the gloomiest of such forecasts -have
come out of Washington.
But, much to the surprise of many people, including myself, this
Since V-J Day,

depression
recession

not

material¬

ized, although
last

winter

strong opposition to alleged condition that U. S. should determine
tariff policies or beneficiary countries.

LONDON,

ENGLAND—The

decision

the

House

of Repre¬
by Congress less
than two months ago came as a great shock to British opinion. When
the ERP Act-was passed it was, of course, pointed in the Press that
Congress
■

sentatives

the

cut

amount

ERP

aid

fixed

would have to

or?-

has

House of Representatives reduction in appropria-

t lions for European aid, Dr. Einzig holds it has had depressing effect
in Britain and has led to loss of confidence in Marshall Plan. Sees

true, but I also know of
several business organizations that
that

have been operating at a loss since
the first of the year and are fac¬

In fact, there was
some hysteria shown in the way
that
government
bonds
were
dumped.
Looking back, it is
easy to see now that the pendulum
swung too far last winter. What
happened to change- this trend?
From the over-all picture, I would
say that the public began to real¬
ize that, generally speaking, busi¬
ness activity was holding up„ the
earnings
of
corporations
were
good—as good as 1947 and, in.
some cases, better.
They rea.ized
that the rearmament program and
the ERP program would provide
bond

market.

only half of these reports

pass
an
Ap> ropriation

and

Act before as¬

ments

sistance

prove

to be true, the British Government

could

continental

many

will

have

govern-

hard

task

►

inducing their Parliaments and
public opinions to adcept the conditions. According to one of these
reports, the U. S. Government
would reserve the right to deter-

like it ing serious problems.
Some of
actually
be
:
granted.
But
bo on them are well known to the pub¬
this was gen-,
the way. Per¬ lic, such as the airlines, which
haps one of have been having their problems
erally regard¬
~
ed as a mere
the reasons now for two years.
mine whether the currencies of i
There are
formal matter,
the European countries concerned why this re¬ others which are : pot generally
cession did not known. X would say that the main
and nobody on
would be devalued or not.
This
materialize difficulty that these particular en¬
this side paid
condition would place the Euro- •
was
due
to terprises
much
atten-.
are
suffering from is
pean countries at such a grave '
the
fact that their inability to rapidly eliminate
tion to it. Un¬
disadvantage that many people ;
der the influ¬
it was so well the wasteful practices that cropped
would prefer to forego the bene¬
advertised that up during the war—they have
ence ' of
the
Dr. Paul Einzig
fits
under
the
Marshall
Plan
stimulus
for
business which
Tbos. E. Lovejoy, Jr.
businessmen been finding it difficult to adjust a
rather than submit to it. Currency *
surprise of the
used greater their operating costs, and the mar¬ would cushion any. recession which bad news, a wave of pessimisih is the lifeblood of a nation, and
might otherwise show up later in developed in London.
care than usual in making com¬
gin of profit has disappeared.
It mani¬ it seems inconceivable to place it|
the year/ There was a comp'ete fested itself in a minor
mitments and plans for their busi¬
slump on at the mercy of any foreign gov- f
The Recent Increase in Interest
change in the entire psychology of the Stock Exchange.
ness—they did not over-extend
ernment.
:
"
Even when the Conti-\
the people. This was reflected in
themselves—and,
as
a
conse¬
"At the time of writing, it is;not nent was under German occupa- '
A little while ago 1 said that an improvement in stock market
quence from the overall picture,
yet known whether Congress will tion, the devaluation of the cur¬
Also, there was an im¬
some
of the weaknesses in our last fall and early last winter it prices.
eventually restore the whole or rencies of the occupied countries
looked as if the depression fore¬ provement in prices for corporate
economy did not gather momen¬
part of the cut. Even if the orig¬ was a matter of negotiations be¬
cast by the economists was on the and government bonds, and now it
tum.
'
inal amount should be restored, tween conqueror and conquered;:
way.
You probably recall the looks as if the pendulum is swing¬ the
Today we are told that business,
effect produced by the action it was not imposed unilaterally on
sharp increase in interest rates ing a little too far in the other taken
?
by the House of Represen¬ the latter.
is good, and that we can look for-*
The stock market has
last fall and winter—the drop in direction.
tatives is likely to remain perma¬
Another
alleged "condition is '
ward to good business for some government bond prices to levels shown substantial improvement in
nent.
It has introduced an ele¬ that the U. S. Government would
indefinite period ahead. Perhaps where the Federal Reserve had prices during the last three or
ment
of
uncertainty
which is assume this right to determine the
to support the market, and there four weeks. How sound the stock
likely to react unfavorably on the tariff policies of the beneficiary
*A talk by Mr. Lovej oy at the was a great deal of talk about the market is I am not capable of
economic and political situation.
countries. This is interpreted over
44th Annual Convention of the possibility of breaking the interest saying.
If you are a Dow-Jones
Until the cut decision, there was here as
meaning that Imperial
New York State Association of pattern
established
during
the theorist and a chart reader, you
»preference could be terminated at
a widespread feeling of confidence
"Real Estate Boards, Saranac Lake, war, and even some questioning would say we are due for a bull
Should this prove * true, it
in the success of European re¬ will.
The r, signal
of the ability of the-Federal Re¬ market.
N. Y., June 17, 1948.
has > been
■
construction.
It is true, even the would arouses strong reseptmeiit
serve to support the government given.
But there are a lot of peo¬
even among the most pro-Amer-.'•■•yxtple who distrust this stock market original figure of Marshall aid ican sections of British
BOSTON
opinion. v
i—they say this market reflects a was considered' far from sufficient
PHILADELPHIA
Communist propaganda, which has
false spurt in business which will to meet vital requirements. Neverresult in further inflation in prices theless;;; the^ promise; of; Very sub¬ appropriated for its own use Dr.
Goebbels's
wartime
allegation.
and in increases in livifig costs— stantial assistance over a period
Portsmouth Steel Corporation
of years encouraged constructive that "the chief aim of American'
they also say that when the day
CentrallllinoisPublic Service
of reckoning comes, this increase efforts, and created an optimistic foreign policy is the disruption of
the-British Empire," would find'
in prices and increase- in1 living atmosphere in which these efforts
Seminole Oil & Gas ;
"It ready believers even in quarters
cost may make the crash all the stood a chance of succeeding.
which usually pay "very little at-.
harder when it does come. I am itself, the actual amount of the
Boston & Maine RE.
Beryllium Corp,
tention to it.. The acceptance of"
inclined to agree with the latter. cut, substantial as it is, would
j V:'..;.
Prior Preferred
Data on Request •
"
;
'
not make a fundamental differ¬ such a condition would result Jn /
A Presidential Election Year
ence in this respect.
What is very the development of very strong,
Traded in Round Lolt
;
buckley securities
One thing ;r that many- people worrying is the widespread feeling opposition to Mr. Bevin's foreign
have overlooked when trying to that, judging by- this experience, policy, and might lead to his re-"
corporation
analyze conditions today, is i that Europe cannot really depend on placement by Mr. Dalton, under
J.
1420 Walnut St.
44 Wall Street |
whom Britain would seek to at- ;
this is a Presidential election year. the continuation of Marshall aid,
Philadelphia. 2
New York 5
24 Federal Street, Boston 10
tain
a
position of "neutrality"
PEnnypacker 5-5976 } WHitehall 3-7253 Neither party, wishes totake' the' and the fear that .Congress -may
TOI. HUbbard 2-3790
States and,
Tele. BS128
not pass the next annual instal¬ between the United
Private Wire System between
(Continued on page 31)
Russia, instead of being whole-,
ment.
It is felt that in the cir¬
Philadelphia, New York and Los Angeles
looked

might

Walter

Connolly & Co., Inc.
...

CLEVELAND

cumstances

ST. LOUIS
American La France Foamite

shifting sands.

Gisholt Machine

Stix & Co.
;

Kearney & Trecker

Y i.': :.y*.

INVESTMENT

Union Com.

Bldg.

CLEVELAND

Tele. CV 174

& Co.

Union Cent. Bldg.
CINCINNATI

SEdliRiTiES

5OS OLIVE

Tele. CI 150

LOUISVILLE

Athland 03 & Refining Co.
Common

Stock

Bought and Sold

Ashland Oil & Refining Co.
Debentures

STREET

Byllesby & Company

Members St. Louis Stock Exchange

PH 73

RICHMOND, VA.

SPOKANE, WASH.
V

NORTHWEST MINING
,

SECURITIES

VIRGINIA—WEST VIRGINIA

NORTH and SOUTH

Quotes call TWfX Sp-43

Floor

Exchange from 10:45 to 11:30
A.M., Pac. Std. Time: Sp-82 at

CAROLINA

other

Floor, Kentucky Home Life Bldg.
LOUISVILLE 2, KENTUCKY
Long Distance 238-9
Bell Tele. LS186

CORPORATION

CRAIGIE&CO.
RICHMOND, VIRGINIA
Bell System Teletype:

RH 83 & 84

Telephone 3-9137

the

■

Members Standard Stock
..

«,

■■

Brokers

Exchange

Spokane

Dealers

Underwriters

Peyton Building, Spokane
Branches at

Kellogg, Idaho and Yakima, Wn.

side
•
.

British

the.

Government
a

'
is'

debate in Par-

the Marshall Plan,

and
to questions on the!
always noncommittal
and -evasive.
Sooner or later it1
its

answers

subject are

lies in isola¬ will be raised, however, and the1
consider it terms of the proposed bilateral >
justified to reorganize their econ¬ ERP agreements cannot be kept
omies if the continuation of Mar¬ secret
indefinitely.
Unless
the

their salvation

tion.

They

may

not

political point of view,
the action taken by the House of
Representatives
has V greatly
strengthened Communist propa¬
ganda against the Marshall Plan.
The view is widely held that, had
this happened before the Italian
election
last
month, the Com¬
a

munist would have secured

jority.

And

election

uncertainty
ance

ma¬

that,

feared

general
the
assist¬

France this year,

American

would influence many votes

in favor of the Communists.

In addition to the shock caused

STANDARD SECURITIES

■F. W.-

1st

ERP.

hours; "/■.:\v.'-

MUNICIPAL BONDS

Incorporated

adapt their economic
the requirements of
They may feel that, after

should there have to be

For Immediate Execution of Orders

Bought and Sold

^ BANKERS BOND ££i

been

From

Teletype

Dealers in

have

.year -appears to be doubtful.

St.LouisI.Ho,

Stock Exchange Bldg. Phila. %
Rlttenhouse 6-3717

they

shall aid after the end of the first

PHILADELPHIA OFFICE

Telephone

The

The European

all,

J;'

' *.

Stromberg-Carlson
Wisconsin Power & Light

field, Ricliards

heartedly /
former.

hament

hitherto

Dayton Malleable Iron

H. M.

Euro¬

anxious Xo avoid

policies

Richardson

reluctant- than

Botany Mills Com. Si Pfds.

Harshaw Chemical

edifice

countries may become even more

American Phenoiics

Drackett

the

reconstruction is being built

pean
on

forecasts prove to be
founded or at least

entirely

un¬

grossly

in¬

accurate, there is every likelihood*

compared with which
by the cut de-\
House of Represen- v
tatives would fade into iusignifi-:
trouble

the

shock

caused

cision by the

Hellenic-American
Chamber of Commerce |
The Hellenic-American

Cham¬

ber of Commerce has been formed
m

New

York for the

purpose

of:

fostering trade relations between
the
United
States and Greece,

by the decision of the House of K. P. Tsolainos, Chairman of the
Represe otatives, the popularity of new organization, announced at
Marshall aid was put to a rather the special ceremony held at the
severe test also by American Press
offices of the new organization,
reports about the
tions

contained

agreements to

alleged
the

condi¬

bilateral

concluded be¬

tween the ERP Administrator and
.the .European

governments.

Broadway.

Mr. Tsolainos is a

general partner in the Investment
Banking Firm of Baker, Weeks &
Harden, One Wall Street, New
York 5, N.Y.
J
i

Volume

THE

Number 4710

167

COMMERCIAL

Washington
Ahead of the News

But today he is about to realize

•'

the

his ambition of getting the New*
than he has been in many years.;

political

dent

i p

ments.

i n.g

against
has

history

has

him

taken

•

'/•

ment

and

govern-;

.["! t
'■?■'w:?;V
sought to be

never

•"

of prices

■';

peculiar twist

considerably farther outside the range of human
ability than> itwas when business forecasting first became respectable
just after World
.YV^r. h .At that time there was some reasonable hope of forecasting on the basis of a
y,,
theory ,0 f<j>——•
;————
;■
' '
1

autonomous! great increase in cycle conscious.action and re-; ness of the public and the accu¬

thei mulation of great masses of sta¬
.economic! tistics which are
closely watched.
process itself,
When Herbert Hoover was Secre¬
.action

James as gov-1
has
been ernor in 3938.
Immediately the|
election was over he got on the;
charged with
being a politic boat and went to Europe for three;
cal

boss.

electing

Arthur

into -Pennsylvania

Convention

been

;

had
ence.

Some

harped

that

columnists

His

have

party

Some of
the con-;
vention, in fact, failing to get- his
active support, have followed .this
means of disparagement.
J
/// It is rather strange for a Ynah
so
lacking in influence to have
tsuch .an assemblage as he did at
his home for dinner
the

-never

-and

seen

the

This

convention.

ate,

are

cumulative

Charles O. Hardy.

initi¬

■

process

ated by

volume

credit

bank

tied

was

q'; to gold stock and the only5 signifi¬
h's stature is simply to talk with, cant
elasticity was that afforded

him,- just
and

has

-r

influenced by

To1 be

ideals

any

the

with ideas

man

.whom he has
* ' * "

4 " /

contact.'

man

ability influences

and

another-man with

canopy.

political advice fyom
legion.

con-

high interest rates and the
rationing of credit. This doctrine,
developed
by
Hawtrey,
made
him' some sense in a period when the

State offices who have
financial assistance and

for

sound

important group gathered un¬

der one

for the Sen¬

credit

and then

tract

his goal; And the can-'

was

received

distinguished

bank

interests

present- convention

by international gold movements.
alternation of bank credit

had

and

probably
the chief factor'underlying the
40-month cycle which was found
tightness

the

economic statis¬

that

would

stability

maximum

statistics

people

was

deviation

downward

from

give

upward

people could adjust

level,
their inven¬

tories -without

waiting until the
got out of balance as
it did in 1920. The result

situation

badly

probably has been to reduce the
violence

of .such

accentuate
tion of

swings but
tendency to mass

a more

Stability; is

to
ac¬

moderate character.

promoted

by 'diver¬

opinion.; Some business¬
are induced to invest freely
high'volume of demand while

gence of
men

other

businessmen

view

cost

the

level of the boom with alarm and

postpone

purchase

equipment

and

inventories.
These
differ¬
investors in both
candidate rivalries. He has given prewar and postwar series up to ences cancel out, and make for
-Bellevue-Stratford,there
is; a
The excesses of boom
his appraisal of this or that candi¬ 1929. This basis of forecasting has stability.
steady trek of important visitors
date whenever .such an appraisal been destroyed, however, by the and depression occur when there
'throughout the day. It is my con¬
is to; much unanimity of
opti¬
was
sought and that, has been development of central banking
sidered judgment that no man in
mism or pessimism, and unanim¬
done plenty. But he has had no and ; related
treasury
policies
this convention has any greater
particular candidate whom he was which have substituted' the dis¬ ity is now promoted by the fact
:> influence..
,.r / v- that everybody is watching the
trying to put over. He has not cretion of monetary authorities fdr!
This influence is not measured
/
hesitated to say that some of the the semi-automatic working
of same statistical series. ^
has

Furthermore, to his suite in the

aloof from the

kept himself

numerous

the '20s.

middle of March brought about a

sharp reversal of sentiment, and
most forecasters predict the
continuation of full employment,
high productive activity, and fur¬
ther price inflation.;

now

Factors

delegates

"con¬

aspirants, did not measure

trols." Knowing him* as I do, I am
convinced that it has never been

It is
who

*his ambition to "control" anybody.

♦He

not

that type of man:

really good to see a man
contributed

has

much

brains and money to the GOP

and
thus to his country get the respect
which is being accorded him, His
long endeavors are coming to frui¬

Ac¬

cordingly he- has never been a
political boss.
There (has never
been an office he wanted; I doubt

-seriously that anyone can recall

the: gold

up. /

tion

last.

.<*

•;

•

historical

.precedent,

economic

conditions

dominated

/"
1
His active interest in the dirty'
brutal game of politics began

Standard Oil Go.

and

(KJ.)

mass;

by the decisions

bankers,
Presidents
or

heads.

when

but
come

of a
treasury

central

few

favor he has ever sought.

/ /

do, we can place some reliance on

dictators,

statistics lose their/signifi¬
:

cance.

'•

obstacle to forecasting
in the early days of the New Deal
is that economic analysis breaks
when
it
looked / as though the!
down when the economy is domi¬
'Republican ~ party would
neverj
nated by war or the threat of
arise again. Men of wealth,-busi¬
war. At the present time the num¬
ness men had become intimidated.
Standard Oil Company [(N. J.) berX problem
is international
They continued to give perfunc¬ is offering 1,265,255 shares of its relations, and under present con¬
tory * support to the party.
But capital stock, (par $25) in ex¬ ditions this is infinitely more im¬
■few if any of them had the hardi¬
change for common stock (no par portant than any internal eco¬
hood to make a real fight. Those; value) of International Petroleum nomic
question.
The frictions
who did not flock to Washington
Co.,* Ltd., in the ratio of. three which threaten the peace of the
A Second

■

Makes

Exchange Offer

To Int. Pel. Siockhldrs,

assure

the

that

Dealers

New

"understood"
them
and
to cooperate with them,
took for the storm cellars.
they

Pew, as he is. so widely
known, was not afraid. Almost
he gave the New

world, moreover, are not

offer

Deal

may

prior to 3

challenge.

p.m.

common

b,v depositing,
Jan. 3.1, JL949.

their bearer share warrants at the

Once he did this he worked in-

Guaranty Trust Co. of New York,

-defatigably.
Of
course,
as
is
-widely known, he gave "gener¬

agent, 140 Broadway,
New York, N. Y., or at the office
of either of the following subexchange

ously of his money. He also gave
generously of his time and energy.

Montreal

agents:

Co.,

Trust

remarks by Dr.
American Mar¬
keting Association, Washington,
D. C., June 15, 1948,

^Summary

stu- England.

OLD BEN COAL

■"■t:

year
us

New Issue:

analysis has been prepared

and

available to

;

COMMON

!/,

(:*'?

OFFERED

THE

JC
f

/.'J'

j •//'.

1 ^

Coal

of first floor sales.

liquor, shoes, tires, and so on. The
acute physical shortages are past
but if prices sag from a shortage
level it does not necessarily mean
that demand has fallen off; or a

,»-»

• >

;

v '

Broadway, New York 4, N. Y. -—77/7.

supply, such as we
had in 1946 and to a lescr degree
demand

brought

forth; the

well-known
unem¬

ployed by the spring of 1946. The
second

wave

the

followed

stock

'v.//;

(2) Programs of capital invest¬

ment^ are .being handicapped, by
high construction costs and diffi¬
culties in getting material.
This
is riot really a bearish factor. It
is an' incident of high level opera/
tion; it foreshadows decline only
in the sense that any feature of
a
boom foreshadows the end of

centered among
economists and

forecasts of 8 to 12 million

over

in 1947.

1945,

government

Prosperity
of

impends.

depression

does not require a huge excess

depression. The first, in

fall

We have ap¬

parently passed from a sellers' to
a
buyers', market in jewelry, in
many textile lines, in books, in

the boom.
'

/[•' ';[

/; ". /

(3) For the first time since the
war
there are scattered reports
difficulty in getting bank loans;
because
of any scarcity of

market break of September, 1946

not

and centered

loanable funds but because of the

largely, among busi¬
The third, which cul¬

nessmen.

minated

growing number of buyers whose
not warrant fur¬

ago, was most pro¬
nounced in the urban semi-luxury

balance sheets do

trades, centering in the northeast¬

they are making profits;.,and, m
a few cases, because bankers feel

ern

a year

part of the country. The fourth
last winter..-It was

occurred

centuated

prices

ac¬

by the break in farm
February.' It seems to
based

have been

uoon

slacken¬

ther credit expansion even

that they are

tion

tax

payments in the first

help

may

explain

the

slackening of business activity in
early 1946 and early 1947.

new

Similar

expansion.

This is

situation, and there is not

yet much

inventories, especially in de¬
partment stores. The concentra¬
tion

though they have ready access

ers'

auarter

loaned up in propor¬
own
capital even

their

funds for loan

ing of sales of soft goods and

a
noticeable accumulation of retail¬

though

basis for judgment as
important or not

to whether it is

In past booms

the money market

has become tight because of pres¬
sure
ran

reserves

before the boom

far enough to create

this kind

(Continued on page 24)

phenomena occurred in the spring

INVESTMENT

common

for

interested

SECURITIES

Public Utility

in¬

Industrial

request.
a

position

stock

the

and

51;

Old Ben

•

Railroad

invite your

purchase

Municipal

sale.

Approximate Price 13*4

">'■

MARKET

WILLIAM S. BAREN CO.
Telephone WHitehall 3-1880

the

at the expense

of basement sales

V ,!
•.,>

;

without

widespread

are

y,\

•;

*• y

maintain

of Conn.

STOCK
* T

•'"Hy

Institutions

inquiries

($.10 Par Value)

:\\y.y

however,

There

creased.

reports of consumer resistance to
present prices and an expansion

have had four waves of pessimism

and other financial

vestment dealers

Day,

the

CORPORATION
[ An illustrated brochure giving a 13

Red Rock Cola Bottling Co.

Since [V-J

ad¬

»(>«

Hardy before the

H Instead of the political boss con¬ -Yonge Street, Toronto 1, Ontario.
ception which has so assiduously Canada, or Guaranty Trust Co. of
been painted of him, he is a highly New York, London office, 32 Lom¬
cultured
gentleman
with* few bard Street, - London, E. C. 3,

equals irr this country, as

economic

questions; they are questions of
stock.
'
4*
ideology.
A third factor which has upset
/ Shareholders / of
International
who wish to accept the exchange the science, of forecasting is the

Joe

as one man

Oil stock for

of Standard

20 shades of International

.wanted

maintenance of

(1) So far as soft goods are con¬
cerned, wartime deficiences have
largely been made up and pipe
lines filled. Department store in¬
ventories, in -particular, have in¬

;/In: forecasting on the basis of
what great masses of people will

currently! cited
the

present high level of business may
be summarized as follows:

■' "w
■•■•■
Waves of Pessimism since V-J Day

standard.

verse

terms

The announcement of the

expanded military program in the

several times during

year

normal

the

information

available

were

warning of

The

ease

assuming

promoted

until j about what, other people were do¬
ing.
For4 example, if inventory

checked.by a
-shortage of

the country.

over

didates for Congress,,

eve

writer

all

conducive

expand

The rebuilding of the Republican

trolled" only five votes.
I the many rival forces at

;

his

and

concern

have spread

the idea that he "con-l

concern.

influ¬

tics,

com-

;mitments toi

many!
Pennsylvania deleeaW he might
or might not "control."
* y' V.

approached^
/the line has
Bargeron

secondary

Commerce, he

business

So it- is idle to discuss how

have been his

key vari-; tary

tendency of

they'

politics,

able being the! the collection

Aside from" this successful foray!

•<

the- Republi¬
can-National

Carlisle

'the

months.

the time for

and profits.

wages

the business forecaster is

Heretofore, he

situation, but warns of shadow of "strong upward move¬
Looks for continuation of full employment with further increases in

and profits.

patronage dispenser; He is given
credit for almost singlehandedly

Staff Director, Joint Committee

•

.durable goods, and in.monetary and fiscal

More recently^

.Dr. Hardy, after reviewing difficulties of business
forecasting, recites favorable and adverse factors
in present situation.
Sees elements of strength in affluent position of consumer in
backlog for heavy

By CARLISLE BARGERON

Oil.

(2747)

By CHARLES O. HARDY*
on the Economic Report

J'/../

PHILADELPHIA, PA.—Few wealthy men have ever taken asi
much political abuse as J. N. Pew, Jr., Chairman of the Board of Sum
Deal out of Washington. He is happier

FINANCIAL CHRONICLE

The Job oi the Business Forecaster

From
'

Teletype 1-2949

]

*-■

•

/ '

;

'/2

COMSTOCK & CO.

Ajcauyn«®comeany
a|

CHICAGO 4, ILL.
231 So. LaSalle St.

Teletype

Dearborn 1501

CG 955

NEW YORK

BOSTON
OMAHA

Incorporated
CHICAGO

PHILADELPHIA
KANSAS

MILWAUKEE

CITY

FLINT

MINNEAPOLIS

;

•

Role of the

FINANCIAL

COMMERCIAL

THE

(2748)

Thursday, June 24, 1948

CHRONICLE

Family Trust

Dealer-Broker Investment

By MAYO ADAMS SHATTUCK*
Member, Haussermann, Davison & Shattuck, Attorneys, Boston, Mass.

Recommendations and Literature

Well knov/n

authority on trusts reviews evolution of modern trust and notes its legal framework as
Well as type of management has served to sterilize large part of past savings. Holds relative amount of
capital per worker has not increased and deplores limiting use of trust funds to purchase of govern¬
ment obligations and similar riskless securities. Urges liberation of capital funds from shackles of legal
list, and suggests that commercial bankers work on the problem.

It is understood that the firms mentioned will be pleased
to send interested parties the following literature'.

Aid to Understanding Financial
Ferry Cap & Set Screw Co-—
Reports of Fire and Casualty In¬ Memorandum—Buckley Brothers,
530 West Sixth Street, Los An¬
Companies — Brochure —
First
Boston
Corporation,
100 geles 14, Calif.

occasional pleasure, as some of you know, to address men in the bank¬
ing and legal professions whose everyday labors lie in the fields of fiduciary administra¬
tion. Your trust brethren have been colleagues of mine, tb some degree, in essays and Broadway, New York 5, N. Y.
It has been my

surance

<&direct bearing

de-

reforms

signed to be
of help not
only
to
our
respec tive

econ¬

that

was

it is per¬

unswerving

doubt of

my ability to approach, let alone

accomplish, the task' which was
thus assigned to me.
I suffered
it—for

about

it is not

very easy for me to say no to the
well intentioned request of the
me

But

then

dawned

that perhaps I had some¬

thing to say after all; something
drawn in part from the
our

All

the

lines

have

now

order

where,

cosmos

come

realize,

flux

constant

and

relative activity. The modern no¬
tion of
preservation of values,
discharges of duties were ren¬
dered vertically.
As with human upon systems of exchanges, came
only as a result of explorations
relationships, so also with prop¬
erty.
The turreted and fortified through a world which was sud¬
provincial seat of that day, like denly discovered to be not only
as
not
surrounded
by a deep round, but in constant flight. As
these concepts dawned on men it
water moat,' provided its own
was to some degree realized that
economy; save for its contribution
it was no longer enough to hide
of natural produce, and its quota
within ramparts and to rely upon
of fines, recoveries and fighting
moats.
The concept of mere safe
power to the liege lord, it knew
conduct for a specific piece of
not the outside world.
In those
days the word "value" had no property was likewise outmoded.
Senses of lateral obligations be¬
significance; the word of wide
came
real, the relationships of
application was the legal term
"use."
The money changer had family to other families, of tribes
to other tribes, of nations to other
yet to make his place in society—
nations, of individuals to other
so far backward, indeed, had men
fallen from the ordered days of individuals, became matters of in¬
Rome
that the limits of trade quiry among men of power and
upon these expanding
movements, of government au¬ learning,
concepts the world-wide British
thority and of human intercourse
were actually and truly a matter ^empire ^as built and out of that
new
order the rapidly develop¬
of visible horizons.
Out of thatlkind of society the ing colonies of America, eventual¬
ly insisting upon their right of
parent or predecessor of the mod¬

Mayo A. Shattuck

omy of the nation.
At first I had grave

movements.;

itself in

defend

of authority moved from the top;

and

men.

was

all

quality, I think, which led them
to believe, as your hosts, that I
might find something of interest
to say to a group of commercial
bankers—a group which does not
confine its activities, or even in¬
dulge very much, in fiduciary
matters, but which constitutes the
front line in the financial econ¬

trust

lateral

adjustors
which is as touching

somewhat

social

that

meat

nothing of ag¬
gressive
elasticity.
Horizontal
allegiances were as little known

feudalism.
there

order

possess also a
quality of loy¬
alty for their

sistent.

duce,

called

They are a
hardworking
lot, those trust
men;
they

friends

it, and to administer its pro¬
whether flax or hides or
or wine, to the use of the
designated beneficiary.
That social order, lacking mo¬
bility and elasticity, inevitably
passed away. It could not hope to

history, for a first moment,
point when the society of
England, and much of the world
civilization, was moulded in that
solid
and
immovable
pyramid

omy 4 of
the
R e public/

It was his task merely to

hold

into

but also to the

thing else, or even to preserve its
value.

I should like to take you back
to

ern

history of

trust

flection

law, in other parts from ob¬

evolved.

was

practical fact

self-determination,

re¬

was

duties

place

and

gained

nation.

new

their

now

became the duty

A trustee could not then be criti¬

of the fiduciary
to
preserve
not an individual
piece of property, but to preserve
a
value expressed in monetary
terms.
The money changers and
money assumed positions of so¬
cial importance.
The private and

at the 52nd Annual Convention of

cized

public

New

the end of the appointed term for

Philosophic

the

most

servation of

omy
our

American

our

and from

econ¬

seems

address

York

ciation,

State

Bretton

Mr.

some¬

to have

Shattuck

Bankers

Woods,

Asso¬

"use."

The

the feoffee

uses, so-called, or the trustee of
that day, were little more than
those of continued possession, ac¬

tive
*An

responsibilities

contemplation of

place in this world;

thing which

called

H..

June 14, 1948.

defense

and

who properly

identical

been

safe

entrusted

delivery.

accounted at

thing

which

him.

Conversion—And

not his task to trade it for some¬

the sort of

upon

thing you do in your own careers,

professions
social

had
was

express

flourished.

trust

speculations

daring sort

(Continued

were

page

the market—Goodbody &

Hartford
on

Co., 115

Broadway, New York 6, N. Y.
Also available are memoranda
Central Railroad of New Jer¬

Montgomery Ward, Standard

sey,

of Indiana

Oil

Tideland Oil

and

Corp.

Securities—List

Convertible

issues which appear attractive to

Newburger, Loeb & Co., 15 Broad
Street, New York 5, N. Y.
Listed Stocks—Directory of 190
corporations traded on the Detroit
Stock Exchange —' Detroit Stock
Exchange, Detroit, Mich.
of

Companies—

Sugar

medium

edition—Reference

25th

offer to sell

Co., 50 Broadway, New
4, N. Y.

Hoffman

Radio

Corporation

—

Circular—Edgerton Wykoff & Co.,
618 South Spring Street, Los An¬
geles 14, Calif.

HotelslStatler Company, Inc.—
Analysis—Kiser, Cohn & Shumaker, Inc., Circle Tower, In¬
dianapolis 4, Ind.
Irving Trust Company

of New

York

City—Analysis — DempseyTegeler & Co., 210 West Seventh
Street, Los Angeles 14, Calif.
is

available

memorandum

current

Home Insurance

Co.,

Farr & Co., 120
York

Outlook

Market

Heller

Stanley

—

Leaflet

Co.,

—

the Paper Industry.

Pine

Street, New York 5, N. Y.
Public Utility Holding Co. Com¬

Lonsdale Company—Analysis-^May & Gannon, Inc., 161 Devon¬
shire Street, Boston 10, Mass.
/

Stocks—Analysis—Ira Haupt
Maryland Casualty Co.—Memo¬
Co., Ill Broadway, New York
randum—William R. Staats Co.,
6, N. Y.
V:
640 South Spring Street, Los An¬
Railroad Developments — Cur¬ geles 14, Calif.

mon

in the industry
Hickey, 49 Wall Street,

rent developments

Vilas

New York

i 1

5, N. Y.
Industry

r o a

randum

—

Memo¬

capital require¬
ments in current "Fortnightly In¬
on

Letter"—H.

vestment

Hentz

Co., 60 Beaver Street, New York

4, N. Y.
In

the

randa

same

issue

Peoria &

Forming
bulletin

Corporation —

First Colony
Corporation, 52 Wall Street, New
York 5, N. Y.
—

National Aluminate Corporation

—Circular—William

Co., 209 South
Chicago 4, 111.

Fuller &

Salle

Street,

memo¬

Goods;
Eastern Railway; Gulf,

Associated

tion,

are

Lehigh Coal & Naviga¬

Metal

Current

new

Dry

National

Gypsum

—

Memoran¬

dum—Zuckerman, Smith & Co.,
61 Broadway, New York 6, N. Y.

Mobile & Ohio.
Also available is an

the Building

18)

States

United
—

analysis of

Industry.

solicitation of an offer to buy any of these Bonds.
offer is made only by the Prospectus.

New England Public Service Cos.
—Memorandum—Ira Haupt & Co.,
Ill

Broadway, New York 6, N. Y.

Government Se¬

Brochure

—

Mellon Na¬

Pittsburgh, Pa.
an

Stout &
York

Jupiter Oils Limited—Bulletin
companies — Cloth — $2 —
-Milner, Ross & Co., 330 Bay
Wall Street, New
.Street, Toronto 1, Ont., Canada. :
5, N. Y.
Also available is an analysis of

sugar

tional Bank and Trust Company,

The

—

King,.Libaire,

for those interested in sugar and

curities

This announcement is neither

Company

Empire

Circular—Eisele &

Also

Manual

the

indulged in.

effect

its

nor a

What Is Ahead for the Electric

Old

Ben

Coal

Corporation—Il¬

lustrated brochure giving 13-yeax
analysis—Comstock
&
Co., 231
South La Salle Street, Chicago 4,
Illinois.

v.'."1- 0

.•

Light and Power Industry—J. W.

Jr.—N. A. Lougee &
120 Broadway,
New
5, N. Y.

McDonald,
Company,
York

$15,000,000

The Cincinnati Gas & Electric
First
Dated

Company

Mortgage Bonds, 2Vs% Series Due 1978

July 1,1948
Interest

•

Alabama

Due

July 1,1978

payable January 1 and July 1 in New York City.

•

Calif.

road—Analysis—Eastman,

Dillon

Co., 15 Broad Street, New York
5, N Y.
:
Also available are analyses of
American Airlines, Co., Interna¬
Corp.,

&
Telegraph
leaflet of Railroad

Telephone
and

Lumber

Company

—

Southern Rail¬

Great

tional

Pacific

Analysis — Elworthy & Co., Ill
Sutter Street,
San Francisco 4,

news.

Parker

circular

Company—

Appliance

—

du Pont, Homsey

Co.,

31 Milk Street, Boston 9, Mass.

Portsmouth Steel Corporation—

Data—Buckley Securities Corp.,
1420 Walnut Street, Philadelphia
2, Pa.
Also available are data on Cen¬

Allied

Paper

Mills

—

Memo¬

randum—A. G. Woglom & Co.,

Federal Street, Boston 10, Mass.

Price 101% and Accrued Interest
Arden

Farms

Co.

—

•

Copies of the Prospectus may be obtained from only such of the
undersigned as may legally"offer these Bonds in compliance
with the securities laws of the respective States.

GOLDMAN, SACHS & CO.
MERRILL. TURBEN & CO.
June 2$, 19j8

W. E. HUTTON & CO.

KIDDER, PEABODY & CO.

McDONALD & COMPANY

Bank

America—Memoran¬

Bank of Manhattan Company—

Circular—Laird, Bissell & Meeds,

Broadway, New York 5, N. Y.

THE OHIO COMPANY

Bloomington Limestone Corp.—

Description—George Birkins Co.,
40 Exchange Place, New York 5,
TSJ

Oil

Gas

and

Beryllium

Corp.

Purex

Oil

Corp.

—

Circular —

Gross, Rogers & Co., 458 South.
Spring Street, Los Angeles ;13,
Calif.

dum—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y. - -

120

MAYNARD H. MVRCH & CO.

circular

Bird & Son.

•

MORGAN STANLEY & CO*

York 5, N. Y.
a

nole

Memoran¬

dum—New York Hanseatic Corp.,
120 Broadway, New
Also available is

tral Illinois Public Service, Semi¬

Manufacturing

Raytheon

$2.49

Cumnlative Preferred—Circular-

Coffin, Betz & Sullivan, 123 South
Broad Street, Philadelphia 9, Pa.
Southern Production Company,

Inc.—Investment appraisal—Kalb,
Voorhis &

Co.,

New York 4, N.

Southwest

25 Broad Street,
Y.

Natural

Gas

(Continued on page 9)

Co.-

THE

Number 4710

Volume 167

COMMERCIAL

FINANCIAL

■

United States Finishing and Maine

nounced by Winthrop

Central Railroad.

Dealer-Broker

Chairman of the
Mr.

Recommendations

Winters

South

Chicago 3, 111.

La Salle Street,

Wall Street, New York 5,

N. Y.

Corp.—Description

an¬

alysis—A. G. Woglom & Co., Inc.,
49 Federal Street, Boston 10, Mass.
Also available are analyses of

the

Chase

board

directors

of 47 attained
Presidency of the world's larg¬

Lee

CHICAGO,

with

South

Brothers

Stern

depart¬

231

The

Chronicle)

Financial

Diehl

C A LI F.-rhas

become

Buckley Brothers,
Street.

Mr. Diehl

has recently been with Morgan
Co.
cer

was

First California Company.

William

Kennedy

has

to the staff of

New Issue

$40,000,000

•

The State of Delaware
The Delaware Memorial
Dated June 1, 1948

Bridge 4% Revenue Bonds
Due June 1, 1978

' j.

•;

less than 30 days' notice, at 100)4% plus
of 1% for each 12 months' period
; or fraction thereof, from the date of redemption to the date of maturity, but not exceeding 105%, for Sinking Fund purposes on any interest payment date on or after
if June 1, 1953, and in whole on any interest payment date on or after June 1, 1963, plus accrued interest in each case.
>
'
- :-Y.
Redeemable at the option

of the Highway Department of the State of Delaware, upon not

principal and interest. Fully registered bonds reconvertible into coupon bonds at
1) payable at the Chemical Bank & Trust Company, New York, N. Y.
at the option of the holder, at the Equitable Trust Company, Wilmington, Delaware. ;
' '■■Y

Coupon bonds $1,000 denomination, registerable as to principal only, or as to both
holder's expense. Principal and semi-annual interest (June 1 and December
"

;

„

or,

in the opinion of counsel, from all Federal Income

Interest exempt,

therefrom,

from all taxation within the State of Delaware.
-a:
f
.'w¥,

(accrued interest to be added)

■

the purpose of providing funds for the

are

exempt

-Vv

'.,v

;.ZZ; :'r Zf; Z

yielding about 3.76% to maturity

Price 104%%,

These Eonds, to be issued for

Taxes under existing statutes.

their issuance, the Bonds, and the interest

Under the Acts authorizing

'•

construction of the Delaware Memorial Bridge and the acquisition

of certain ferries, will, in the opinion

of Delaware, principal and interest being payable solely from revenues derived from operation of the Bridge
and the Construction Fund. The State of Delaware is not obligated to pay the Eonds or the interest thereon except from such revenues and the Construction Fund. The
faith and credit of the State are not pledged for the payment of principal or interest and the State is not obligated to levy any taxes or to make any appropriation for their
payment/The Bonds are to be issued under the Authority of the Laws of Delaware, 1945, Chapter 275, Vol. 45, as amended by the Laws of Delaware, 1947, Chapter 192,
Vol. 46 and the Indenture between the State Highway Department of the State of Delaware and the Equitable Trust Company, Wilmington, Delaware, as Trustee.
constitute valid and binding obligations of the State

of counsel,

The Bonds

arc

and delivered to us and subject to approval of all legal proceedings by Messrs. Wood, King and Dawson,
& Finger, Wilmington, Delaware, are approving all legal proceedings for the State Highway Department.
Copies of approving opinion of Bond Counsel will be available upon delivery.

offered for delivery when, as and if issued

For information relating to

The Delaware Memorial Bridge and to these

from

{

Stone & Webster Securities

•

:«'

/*' ' *

Phelps, Fenn & Co.
B. J. Van

Union Securities Corporation

Equitable Securities Corporation
:

Salomon Bros. & Hutzler

E. H* Rollins & Sons

Blyth & Co., Inc.

Goldman, Sachs & Co.

Corporation

Lehman Brothers

Ripley & Co.

.Incorporated

; :V v' •""'■■i'

Incorporated*'.!-

Bonds in such state.

Smith, Barney & Co.

Blair & Co., Inc.

Allyn and Company
■

,*s

Glore, Forgan & Co.

Drexel & Co.

A. C.

The First Boston Corporation

•

Harriman

Kidder, Peabody & Co.

Alex. Brown & Sons
'

Bonds, reference is made to the Offering Circular
obtained in any state

21, 1948, which should be read prior to any purchase of these Bonds. Copies may be
only such of the underwriters, including the undersigned, as may legally offer these

dated June

Bond

Counsel. Messrs. Richards, Laytoa

■

Shields & Company

Ingen & Co. Inc.

R. W. Pressprich & Co.

Stifel, Nicolaus & Company
Incorporated

Incorporated

Francis I. duPont & Co.

Coffin & Burr
Incorporated

•

V;;': -v^:

Laird, Bissell & Meeds
.

^Vv

Estabrook & Co.
^ ""

'Z" '

Harris, Hall & Company
(Incorporated)

Merrill Lynch, Pierce, Fenner & Beane

Lee Higginson Corporation
F. S. Moseley & Co.

Paine, Webber, Jackson & Curtis

June 22, 1948.

Laird & Company

■*—i"

also

Buckley

Brothers.

Co.

Prior thereto he was an offi¬

for been added

Manager

Chicago

formerly

Corp.,

Street.

Salle

ANGELES,

530 West Sixth

associated

become

Higginson

Lee

Wiflt

Buckley Bros, in L A.
Edward

ILL.—Roland Mer¬

has

Jr.

rell,

"I'UHg

Chronicle)

Financial

The

"i"

associated with

Higginson Corp.

(Special

■

Edward K. Diehl

LOS

Roland Merrell With

the parent company in

New York in 1929 in the

National Bank, it was an¬

Vice-

(Special

Indiana communities he was trans¬
ferred to

Financial

and

1944

Vice-President in 1946.

corporation, has been associ¬
ated with the Bell system all of
his business career.
In 1922, upon

of the

President

Wilson, who in February of

est

graph Co., was elected a member

operations and engineer¬

He was appointed

ing.

graduation with honors from Rose
Polytechnic
Institute
at
Terre
Leroy Wilson Director
Haute, Ind., where he was born,
Of Chase National Bank
he joined the Indiana Bell Tele¬
Leroy A. Wilson, President of phone Company as a traffic clerk.
the American Telephone & Tele¬ After varied experience in several

United States Rubber Company

Verney

the

Miles Shoes, Inc.

■—Memorandum—A. M. Kidder &

Co., 1

this year at the age

Corp.—

Crampton

Analysis—C. E. Unterberg & Co.,
61 Broadway, New York 6, N. Y.
Also available is an analysis ol

(Continued from page 8).
Circular—Leason & Co., 39

ment of

W. Aldrich,

Chase board.

(2749)

CHRONICLE

■

(2750)

THE

—

COMMERCIAL

Madden,

New

York

University's

Institute

In
on

1947

dollar

bonds

outstanding

This Week

floated

ment

dollar-issues

four

and

summarized

are

banks

the following table:

Debt service

paid in full

In default

to interest

In default

from their annual

[

sinking fund

Dec.

$535,375

Surplus and Undiv. Profits

Dean

y T

Total

Dec. 31,1947
(000,000) %
$2,334.4 51.77

50.04

2,145.1
prin.
106.6

47.60
2.36

2,101.3

46.60

73.4

1.63

~$4,5Q7.1 100.00

and also

the

end

1947

Latin

$4,509.1 100.00

America

■

-'., ft-,,

Bank

accounted

'■

Chase

9,420

National—
Bk,

National——

-vv

Manufacturers

Guaranteed Twenty-Year 7% Sinking Fund Gold Bonds
of

January,

1927»

Due

January

15,

1947

Guaranteed Twenty-Year 6% Sinking Fund
Issue

August,

1927,

Due

August

Gold

Bonds

York

Trust—

Trust

Twenty-Year 1% Sinking Fund Gold Bonds of 1928
Dated April 1, 1928, Due

::A

April 1, 1948

Mortgage Bank of Colombia
'

(Banco

Hipotecario

Dated

(Banco Hipotecario de Bogota)

't\

3,424

>
•••

108.150

135,980

136,746
360.667

ture

39,040

2,606

112,675

7,409

119,030
-•': 287,632
-

2,054

1,235

4,785

63,396
29.839

526

1,235

29,273

—1,538

$2,000,844

62,870

$81,313

•'

30,811'

$1,919,531

$60,548

the

case

$81,313,-

1,306

the

Rodney W. Brown

the rate of

each

mne" shares

United

States

Manhattan

Association, at the Montclair Golf
in Montclair, New
Jersey.

Stanley Russell, Jr. of Blyth &
Co., Inc. was in charge of general
arrangements.
The heads 6f similar organiza^
tions of junior investment
bank^t$
and

brokers in other cities wore
guests of honor, among them Rob¬
ert

Gerrish

SECURITIES

?■

may

Request

New York

Telephone:
Bell

25, 1942,

Rippel & Co.
Established 1891

Exchange

18 Glihlon St., Newjirk

BArclay * 7-3500

be accepted

2|JN^ JL

;

fiEYER & CO.

Copies of the Offer

may be obtained upon application
Exchange Agent, The National City Bank of New
York, Corporate Trust Department, 20
Exchange Place,

/
^

NEW YORK 5:
/

WHiTWiAU-^OYea

■

Pedro Bernal E.
(Gerente)

CHICAGO 4

LOS ANGELES 14

10 Post Office Square

231S. LaSalle Street

210 West Seventh street

FRAnklin 7535

Michigan 2837

BS-297

CG-105

LA-1086

4„

rSpecial

1-2675'

HUbbard 2-0650

(Banco Agrricola
Hipotecario)

PRIVATE WIRE SYSTEM CONNECTING: NEW
YORK,

SAN FRANCISCO 4

...

Buss Building
YUkon 6-2332

Providence, Enterprise 7008

./•_•

Portland, Enterprise 7008
Detroit.

Enterprise

6066

the

has

Rogers

Financial

X CHARLOTTE,
Herndon

Chronicle)

N. C —Marion E.

become

associated

with Louis G. Rogers & Co., John¬
ston

SF-573

BOSTON, CHICAGO,

CLEVELAND, PHILADELPHIA, ST. LOUIS. LOS ANGELES, SAN FRANCISCO
TELEPHONES TO: Hartford, Enterprise 6011

J-

With Louis G.
.

BOSTON 9
.

transportation.

—

Marion E. Herndon Is

Wall Street
NY

sports compe¬

handled

Beane

'/•/V

the

winning perform¬

the day's

of
Morgan,
was in charge: of <
golf, Julian Flemphill of Hemphill,
Noyes & Co. of tennis, and Arne I
Fuglestad of White, Weld & po¬
of* other spqrts. Sydriey Duffy of
Blyth & Co., Inc. managed a spe¬
cial event and Roger Gilmartin
of Merrill Lynch, Pierce, Fenner

incorporatkd t' ■:

AGRICULTURAL MORTGAGE BANK

Robert' Baldwin

New York 15, N. Y.

Co., Inc., President of

Stanley & Co.

Phone—REctor 2-4383

BANK and INSURANCE STOCKS

multiples of $500 principal amount
has also been extended from
January 1, 1949 to January
1, 1951.
' /'
.v
*.
/

WHOLESALE MARKETS-IN "~

July 1, 1950.

The

Dated, June 24, 1948.

Weeks

tition were awarded,

MArket 3-3430

Teletype—NY 1-1248-49 T

time prizes for
ances

due October 1, 1970 in

Whiting,

the New York group,
presided, at
dinner in the evening, at which

J. S.

Meeds-

Stock

(L. A. Glbbs, Manager Trading Dept.)

period for exchange of Convertible Certificates for
3% External Sinking Fund Dollar Bonds of the
Republic

Stubbs, Boston.

exchange the above Bonds and the appurtenant cou¬
for Republic of Colombia, 3% External Sinking
to

Wadds

of McLeod, Young &
Toronto; John Penny; of
A. E. Ames & Co.,
Montreal; John
Conger of DeHaven & Townsend,
Crouter /& Bodine, Philadelphia;
William Legg of Mackubin, Legg
&: Co.,
Baltimore; and Robert

pons

1,1970,

Rodney W.

Club

itirers Trust, -National. City and

Company

120 BROADWAY, NEW YORK 5, N. Y.

NOTICE OF EXTENSION

hereby extended from July 1, 1948

Mr.

appears herewith.

NEW JERSEY

Laird; Bissell

Members

firm.

York, formerly the Junior
Investment Bankers and Brokers

Sinking Fund Dollar Bonds
Colombia, Due October 1, 1970*

Fund Dollar Bonds, due October

Boston

Philip Moore of Schroder, Rock¬

Convertible Certificates for 3% External
of the Republic of

pertaining to
Rodney Brown's admission to

efeller
Circular

The time within which the
Offer, dated June

;the

item

New

hattan, Corn Exchange, Manufac-

October, 1927, Due October 1, 1947
'

in¬

in-

Approximately 75 of the younger'
men
in the securities
business
attended the second annual
outing
of the Investment
Association

Trust

Bank-

and

news

was

Weir,

Issue of May, 1927, Due May 1, 1947

Icsue

an¬

Investment Ass'n Hold
Second Annual Party

Twenty-Year 1% Sinking Fund Gold Bonds
*'

pic¬

Mr.

same

serted

for

itials

have

stock dividend at
"share

the

$74,130

must

when

other S;: M r.
Brown with

11,100

28,604

174

114.481
123,815
298,732

through

error

issue

766

321,627

Chron¬

in its June

4,648
1,052

-43,593

8,780

14,212

Street,

reporting this

8.524

322,025

-'720

3,595

127,528

103,502
42,041

•1,100
1,400

1,972

2,400

•

150,749

313,501

2,826

regrets

that

•

124,104

.7,988

"The

473"

27,363

evident, therefore, that

substantial amount

one

Twenty-Year 7%. Sinking Fund Gold Bonds
.

147,154

4,000

$134,678

Mortgage Bank of Bogota
"i~"

Weeks

icle"

1927

February 1, 1927, Due February 1, 1947

net

Stubbs,53

/■ \-

Increase

City Bank Farmers Trust.

Dated October 1, 1927, Due October 1, 1947

4,454
2,335
1,574

■

—_

Twenty-Year 6^% Sinking Fund Gold Bonds of 1927
;

4,020
•3,421

capital

Datod-Nwember 1," 1926, Due November 1, 1946

Twenty-Year 7% Sinking Fund Gold Bonds of

in Whiting,

' $1,377

disbursements with Bank of Man¬

Colombia)

Twenty-Year 7% Sinking Fund| Gold Bonds of 1926
«•

4^-04

„

$64,487

26,890

4,950
.'9,300 /

•

Dated April 1, 1927, Due April 1, 1947

■

partner

whose capital funds decreased bj
$1,538,000 in 1947, despite reportec
earnings of $174,000 in excess o.'
come .from
reserves which had
dividends.' * This / situation ' waf4
been set up out of earnings not
caused by a transfer of $1,600,000
reported during the current year,
from undivided profits to the Re¬
or during previous years.
tirement Trust of the Employees'
An example of this is found in
Retirement Plan.
the case of Guaranty Trust which
; It will be noted' that undistrib¬
increased capital from $90,000,000
uted earnings exceeded dividend
to $100,000,000 by the payment of

Twenty-Year 7% Sinking Fund Gold Bonds of 1927
1

*The"reported,:earnings of the,15.banks4 under review, aggregated) Brown's
picture

000.

Bank of Colombia

x-j.

ap¬

total

Rodney W. Brown will become

$134,678,000 in 1947, approximately as follows: net
operating, $121,025,000.; net secur,-^ "^
ity profits, $9,-361,000; net recov¬
held; the $10,000,000 was paid intc
eries, $3,992,000; Of these earnings capital
by a transfer from surplus
some 55% or $74,130,000 were dis¬
while $32,754,549 was transferred
bursed as -dividends*
Undistrib¬ from
general contingency reserves
uted earnings totaled $60,548,000.
to undivided profits and surplus
This figure, is nearly $21,000,000
A reverse example is found ir
less than the increase in

12,359
23,512

473

"6,606

Trust

City ___j__

funds which amounted to

1928, Due April 15, 1948

(Banco de Colombia)

4.1

1947

Guaranteed Twenty-Year 6% Sinking Fund Gold Bonds
Issue of April,

8,720
20,780

National

•

earnings
of.

v/;':

in round numbers,

Twenty-Yea* 7% Sinking Fund Gold Bonds

Issue

.3,772

TOTALS

Iskuc of 1^, Due April 1, 1946

•'/

•

4,200
11,840
4,500'
i 1,800
8,000
12,000

/. 1,326'
•

Guaranty Trust;;///
Irving Trustf

Public

Agricultural .Mortgage. Bank.>,
..•••

For the group,

Boston, Mass.,
on
July i, 1.

Dec. 31/47

$63,110.

5,400

19,828
Tr.

First

Colombian Mortgage Bank Bonds

$2,658

840

Exchange

"Includes

$81,313

.Capital Funds
Dec. 31/46

tributed

$2,400

Hanover~_.__

U.. -S.

Dividends

1,313

Chemical

Offer)

(Banco Agricola Hipotecario)

5.2

■

::.-T947?Vv-^tJndis-:^;

vL';'■

Avenue

Corn

To the Holders of

Guaranteed

$5,058

Trust__—_

Bankers
Central

New

not an

45%

Rodney W. Brown

1.9

71,313

City.

undistributed

proximated
profits.

State
"

York

New

Fifth

"National

(This Announcement is

$10,030

and

for

(

Manhattatf

Bank

7
«

total

-(OGO's omitted)-

31.8% of total, defaulted bonds, a slight decrease from Dec. 31, 1946.
Europe's percentage increased from 53.6% at the end of 1946 to
54.5% on Dec. 31, 1947. The Far East accounted at the end of 1947

for 13.6% of total defaulted bonds.

approximately 60% of total net
profits, viz. Manufacturers Trust
and National

reserves. /

Total Net

bonds.

Only two of the above 15 banks
show- undistributed
earnings' at

the year by $81,313,000 and since
no "new money" was subscribed
by stockholders, investors or the
public in general, this increase came from undistributed earnings
comprising net operating profits, net security profits, net recoveries
over

Dec.

defaulted

group

—Increase—

1,455,469

Funds-i.-., $1,919,531' $2,000,844 i V

Capital

Capital funds increased

default, Mexico-and Chile accounted for 35.9 and 19.7%,
respectively, while German issues represent 58.7% of total European

.1,384,156

/i:^

31, 1947 European ahd Latin-American obligors ac¬
counted for 86.3% of defaulted bonds.
Of the total Latin-American
bonds

•';•

■

the figures tabulated, with
Chase,
Chemical, and Guaranty Trust.

/,t'

31,'46 Dec. 31,'47
(000's omitted)
$545,375

•

Capital

Earnings

Figures of

re¬

however,

Capital increases exceeded un¬
distributed earnings, accord ng to

Aggregate capital, surplus and undivided profits, which constitute
capital funds, for Dec. 31, 1946, and Dec. 31, 1947, compare as follows:

$2,255.4

—

National.

recourse to

banks, so-called, are presented.

their

substantially true of Bank of New
York, Central Hanover and First

ploughed

were

the public, addiJ
created out of current earnings.
'

1947

Total

States

reports and balance sheets.

15 "Wall Street"

Dec. 31,1946
(100,000)
%

I the United

Thus, without

bank capital was

aggregate

Furthermore,
occurred, and the percent¬
age of Brazilian bonds assented to Plan A has
increased during 1947 from 25.58 to 31.59%.
Data on the status of all publicly offered foreign dollar bonds as of Dec. 31, 1946 and 1947,

national

defaults have

new

money into
-With
Public,

away

undistributed earnings and capital
increases were equal; the same is

[

It may be of interest to look at the achievements of leading
New York City banks in this respect, so far as may be ascertainable

principal amount of $280,000,000.
no

5,000

back into capital funds.
lional

Develop-

the

Bank Stocks

—

The annual report of the National Bank Division of the Ameri¬
Bankers Association states that 60'% of total 1947 net
profits

can

University. 4V
fx
The increase in proportion of bonds serviced
in full from 50.04% in 1946 was due mainly to
the fact that during the year the governments
of the Netherlands and Norway, and the Inter¬
Reconstruction

ing

serves.

York

for

the
less

was

undistributed earnings for
first four of these
banks, in¬
were still tuck¬

the

By E. A. VAN DEUSEN

paid in full on $2,334,377,835, or
$4,509,144,941, of publicly offered foreign
on Dec. 31, 1947, ac-

of the Institute of International Finance of New

Bank

However,

than

dicating that they

cording to a bulletin entitled "Statistical Analysis
of Publicly Offered Foreign Dollar Bonds," is¬
sued June 21 by Dean John T. Madden, Director

national

National.

increase in capital funds

debt service has been

of the total of

51.77%

Thursday, June 24, 1948

Bank and Insurance Stocks

Public

Finance, issues analysis of publicly offered foreign bonds.

/',/./

Public

Reports Debt Service of Foreign Issues Improved
Dean

FINANCIAL CHRONICLE

Building.

ducted
ness,
and

his

own

He formerly con¬
investment busi-.

Herndon

prior thereto

was

Company,
an

officer

Southern

Investment Co., Inc.

Volume

167

Number 4710

THE

The Crisis in American Life
v;-.

Y;-.

By HERBERT HOOVER*

'•

Former President of the United States

/77/« V'-'f

;

7
"

domestic struggle against collectivism,

great

problems

as our

they

are,

and

ment

including

ization

our own

forward

moves

been

some

may

spread

already
ing

tion

that

$22

over

Federal

Herbert

Hoover

For

our

estimation of

any

you

are

before, the trustees of

the cause for which
this party was founded, the cause
of human liberty.
i 7*7,
cause,

Clur Afd;Jo Liberty in th?

;Wor^

Liberty has been defeated in

They have re¬
They have revived
mass
guilt.
Theyr.have revived
government by hatred, by torture;
by exile.
Today the men in the

Kremlin hold in their

keystone
our

right hands

military aggression

1947

;•

tribution
ard of

which

upon

living depends.

effort

ard of"

new

human

all

them

saved

but they

That

Some will say that

easy

say.

But

any

student of economics knows that,
in

the

long

be'passed
provided
-our

consumer,

want

tax will

the

would

Surely

refuse to

One

(Continued

by
finds

peace

page

not

ambition. It
our

common

Republic

born in this

was

those

responsibili¬
government for

justice

always,

is the

the

jobs.

promised

efficiency.

today as
of faith in

turned loose within
It

promised

again

great

destiny of our Re¬
public. We are not going back to
any yesterday. All our yesterdays

war

and

without con¬
useful to have

nor

war

\r€

inevitable.

Whether

■

V:7

people's convention. It

the;

7 Such

Ameri¬

ings to free men: every where and

Its',

VKeynote address of Gov. Green
before

the
Republican National
Convention,
Philadelphia,
Pa.,
June 21, 1948.

party is all things to all

The New Deal

offspring

secies

right

24) 7 7

sorriest

time

promises in the

They stayed
the

some

right

were

the

ever

and

wrong,

errors

(Continued

777777177171 200,000; Shares 71771777f7::;'

situation in

world

''7.

y ;" '

*7 ,7

*'•'*'''

r»

.«*'

A 77.'

!•

which

Consumers Power

there

is little time for regrets.
The only obstacle to the

-.7

Company

anni¬

hilation of

United

States of

long

freedom has

the

been

America.

United

>77^7

§g|

the

Only

States

$4*52 Preferred Stock

Cumulative,; Without Par Value

•

free and strong will human lib¬
erty survive in a world frustrated
and devastated

by these two

wars.

Price $102,725 Per

■} It is in

our interest and,c above
all,
in the
interest
of; liberty
throughout the world, that we aid
in giving strength and unity to
the nations of Western Europe. It
is only thus that we can restofe a
balance of power in the
world

Plus accrued dividends, if

7'v"V

7-"7;,7 7 7 7-'•

•»

*•

;

?7.

77 7

•.

'•7\p-r&s.\• • v; -.'7.

•

-7'^77

\ v

{•

from July 1, 1948

f;L

■

•'

•

)'.■

Copies -of the Prospectus may be obtained in any, State from only such oj the. underwriters, including the undersigned, as may legally offer these securities in such Stale..

•

any,

able to tesist the hordes from the

Eurasian steppes who would ruin
Western Civilization.
We have also the burden of in¬

creased

armament

hostile

this

force

will

that

assure
ever

reach

hemisphere. 7777'

■■

'.''"^•••7
'■

•

Withj. all the good will in
hearts;

our

friends abroad should

realize?that
be

our economy must not
exhausted or over-strained by

these

•

Fifth

collapse

Columns

ning,^:,;

are

for

which

busily

'%• ,v>:-

-•

Pa.,

■■■'

*7 \

.•

;«■

;,..v

Central

'.7

•

7-7;

.•»

7''".

■

■:

V'.-

•

KffP..

(Incorporated)

Ladenburg, Thalmann & Co."

7;\i-77'7

..Paine, Webber, Jackson &. Curtis

v.,"

■;

* : ^
Salomon Bros.
\:;v. ...... - •;

June 24, 1948

•

...

& Hutzler

•«;

•

?-*;77

.-7

'*•

'*7

-•

Wertheim & Co.

v.:7

F. S. Moseley & Co.

■'■■■•

Phelps, Fenn & Co.

77'

♦

22,

Republic Company

plan¬

June

■"?

-• •••

•

Hayden, Stone &. Co.

his

address by Mr. Hoover at
Republican National Conven¬

tion, Philadelphia,
1948.

'7.7777-"--77-':':.'7.

*An

the

'y;'

...

"(7

or
the world is lostj

economic

7; Bear, Stearns &. Co. 7!

burdens,

the last hope of
We should only
be playing Stalin's game, for his'
expressed real hope lies in our

*•-•

-c

f 7'-

Shields & Company

White, Weld & Co.

./* V,

7..:'

:.... :j

....

came

intimacy

American

statesmanship that helped bring
it about, we are today faced with

long, long

page

NEW ISSUE

what¬

feast

lived with those

unholy

the

of us, who fore¬

its

who

men

The New Deal

radicals

economy and gave

unproductive spending, unbal¬

—

dinner.

nation,

our

It promised

fringe

of power.

just that.

the

was

of broken

history of
j.

was

lunatic

an
offer-to sell nor a solicitation oj an offer to buy any of these securities: The offering is made only by the
Prospectus. This is published on behalf oj only such of the undersigned as are registered dealers in this State.

that danger and warned of it,

saw

Apparently, the only promises
that were really kept were those

World.
i

citadel. \

men
'

Its

again and
when, it knew

again,

our

This announcement is neither
;

peace

ex¬

,»'■

gave

agriculture, labor, man¬
business, large and

from

nation,

only hope
payable in

Grecian gift was a Trojan donkey
filled with swarming bureaucrats

the individual American—of faith

,in

bigger deficits.

agement and
small.

party

promised

tion

and

leader for

new

taxes
deficit

bureaucracy. It promised pros¬
perity. It paid in the regimenta¬

The Republican party,

place for

This

the

serve

Its

other people's money.

the

-stability,

demand

men.

lools

any

aspire to the income of

cooper¬

powerful

dominated

neither

had

executive

freedom,

this Republic. We 6ehd our?greet-

to have the

seem

the 48 states and the territories of!

maintain

real wages and great

production.
can

such

run,
on

jorities, it piled

16 years. Our Republican
party
challenges
a
further
grant
of
power to that party. It asserts that

debt.

have taught us * that we have a it
gave to Joe Stalin.
duty to tomorrow. 77:7;7'7 7 '77
And now it promises to promise
7 The New Deal party can have again and again.
,
is of the. people,- for the people
no real program, because it is
no
As its boat sinks, the skipper's
and by men and women in the
longer a real party. It mustered its piano still pounds out "Meet Me
service of the people. This con¬
majorities from a fantastic part¬ Next Year in Dreamland."
vention belongs to the millions
nership of reaction and radicalism.
New Deal and Radicals '
7
to- whom radio and television are
For years, this strange alliance
Like a man, a political party is
carrying this message. It belongs was
held
together by
bosses, judged by the company it keeps.
to
the
145,000,000 American in boodte, buncombe and
blarney. The New Deal party invited

This is

increase corporation taxes.

in good will or peace

science,

has

ties

atmos¬

•'7.777V.,7 city.;:.777:7//..;: 7 7777'

living of those who do the

we can

which, long ago,

Nor is there any room for more
taxes except by a cut in the stand¬

nation's work.

partisanship.

hour for personal
is for us to dedicate
an

stand¬

our

7 77/v 7

narrow

did not

If the

earth.

parties

massive

—

oppressive

In final desperation, its
is in
promissory notes

through
two
great

greater America..'•

United

competition
political parties.

budgets,

spending was first used to build
majorities. Then, to save its ma¬

purpose

This

high

vention.

States Senator—less taxes.

they work to weaken
civilization by boring from within.
'7< These tyrants have created a

ate with

its

peace

Dwight H. Green

the

this

sacred

and

has learned that government best

hands

Hitler

faith.

keep

——

anced

faith with you wherever you are.
The Republic here established

the-

the

will

con¬

left

perience.

say,

meet

against all civilization. With their,

situation

serves

year.

budget threatens to

year

power.

difficulties t<o

———1

solemn

nations*

vived slavery.

threat

that

them

charter

properly maintain and expand the

moment.

once

—

men, though in bondage, who
long for freedom that is lost. To

events

the

present international

immortal

be cost¬

billion

conven¬

Re¬

ears.

tion hail

signals

soon

United

States.

77 •; great tools of production and dis¬

ever

the

phere of great

that in

sense
.

country beyond

the

our

the ♦>——

Constitution

taxes and the export of materials
drain the savings of our people

here, will affect the destiny of

great

shaped
of

What is done here, what you do

score

•

■

provemerit.;
■:
r y; 77' 7;
Even our present $40 odd billion

pro¬

tonight.

than

•

we delay many plans for in¬
ternal social and economic \imV

ac¬

and

the lunatic! fringe to share its feast of

Republican 80th Congress and lays

less^

to speak

this

'7-

govern¬

Warning

■

.,,;v We are here to nominate the 34th President of the United States.
Here in Philadel¬
phia, the Declaration of Independence proclaimed the freedom of America.
We in this con¬
vention reaffirm American freedom and
independence,
He!re in Philadelphia wise men

today certainly
Ameiican economy

clang

-us

Our

not

pose

Gov. Green attacks both policies and actions d

increase to $50 billion a year, un¬

transcend

And

Deal's "futile policy of appeasement of Communist Russia." Extols
Republican Party foreign
policy plank of 1944, and supports European aid to check!spread of Communism.

•

are

our

lief and defense will

prob¬

partisan

| to the utmost.

which

confront

that

straining

the world.

tar

?ize

all

—

The

lems

this

>;ear

over

7 New

Our friends abroad should real-

corrupt¬
and

:;,

hurt;

d i m i n ished;
thinking
has

ed,

Every important

Lauds accomplishments of the

has broken; its promises to mankind.
Civil¬
only on promises that are kept.
Faith has

hope has been

been

think.

In keynote address at Republican Party Convention,

leadership.

proper

This Convention meets again in a continuing grave crisis.

this crisis is deeper than

By HON. DWIGI1T H. GREEN*

VNzw Deal, accusing, th- Democratic Party of having invited

confidence,

expresses

be solved by

can

Governor of Illinois

Says present taxes and exports da not permit expansion of pro-"
duclion upon which our living standards depend, and we must not
make Europe dependent on us.
Attacks "middle-of-roaders" in

•;

■' :

annihilation of freedom, urges -aid to Western Europe* but warns i'A
our economy must not be exhausted or over-stra!ned
by the burden.; 7

(2751)

Republican Party Program

Ex-President Hoover, pointing out United States is only obstacle to

■

&' FINANCIAL CHRONICLE

COMMERCIAL

••

34)

for

CHRONICLE

FINANCIAL

COMMERCIAL

THE

(2752)

and

trouble

;

which will

expense

involved in the administration

your' estate.

their wives

their

wills

upon

request from

investment dealer, or from

your

National
research

&
corporation
securities

5. n. y.

120 broadway, new york

good bet-—but how
I know it'll be a winner?
It

different oc¬
for more than a
to sell the bookie first one

The

salesman, On

tried

casions,
year

Seorge

time

PUTNAM

ran

winner?

The latter looked over

tual fund.

portfolio carefully.

the

J/jo-it
,

"Fifty-three different stocks—
and all running for me. How can
I

said he.

lose?"

Tmpectus upon request

salesman

The

bookie
Putnam Fund Distributors, Inc.

stock mu¬

common

offered

salesman

the

bookie

the

|FUND;

against the same

"How do I know it'll be
It ain't for me."

Finally,

But every

stock and then another.

response,

"How

me."

ain't for

-//g>

counts

now

fund clients.

carried out, in a way
perhaps not foreseen by him, is
evidenced by the fact that 50,000
purpose was

excellent

low-cost

engineering training
Franklin Technical In¬

through

expensive because of the
details involved. The esti-

quite
many

administration

and; 34

duties

bate

apt to

more
important
executor in the pro¬

the

listed else¬

estate are

expenses

may

inate the necessity

estate

Federal

save

income taxes;

some

executor

You

administrator.

omitted

are

shorten

the

time

also

may

and

taxes

You

may ac¬

complish these savings by making
irrevocable

But a sound, practical en¬
gineering training is provided for
who in

those

great many cases
could not afford the conventional
a

would

"It

difficult

dis¬

your

family,

wife

and

interesting example
foresight where such

in trust to your

children.

The

rest

bank account, etc., could be

car,

put in your and your wife's names
tenants

shrewd

outright to

either

property, such as your house;

your

as
cover

gifts of most of your

property now

and reduce the expense to the stu¬
dents.

the entirety

with

tenants

joint

the

he. doesn't

"Prudent In¬
home the inexor¬

Ftitnam's

George
vestor"

drives

ability, of compound interest in
conjunction with careful invest¬
ing:
•'
tongue's tip of most
Americans are the homey, spicedwith-common-sense
observations

Franklin.

of Benjamin

lic gifts; among

which

one

them

"Balancedn Funds
In

Fund

not

may

*Ed. Note: While
record

this

since

the

realize

no one

The

could criticize

investment

managers

fund, believe it or not, $1,250
interest compounded
quarterly
would be worth over $3,300,-

court., If

your

wife

chil¬

dren are beneficiaries of your

the proceeds of

policies,

surance

in¬

Executors

choose the

insurance

your

would

also

•rjgfration
"If

' '

balanced fund is the prin¬

investment

cipal

your

for the beneficiaries.

has

estate

fund
shares,
readily liqui-.
date enough at any time to pay
these charges leaving the balance
for your beneficiaries.
;
: ;
:

fund

can

making
shares

family,

gifts

pounds)

(1,000

rate

investment
dated

services

the

handle

which

all

trust

the

investing including the collec¬
tion of income, exercise of valu¬
able rights, custody and safekeep¬
ing of securities in the Fund. .Fi¬

nally,,

giving them

well

balanced investment program

with

you are

continuity of management which
have selected and have
in.,"

fidence
•■=

-v'

Prospectus from your IAvostmont Dealer or

HUGH W. LONG & CO.
WALL

!Q1

ANOlm

STREET.

ters of the accumulated

fund

"Dividend Shares"

Assets of

Exceed

$64 million.

As of June *18

Bullock's

some

assets

"Dividend

$64,648,000;

picting

NEW YORK

5, N Y.
CHICAGO

public work
inrBoston and the remainder, or

one-quarter,
on

interest

remain

was

schools &

"The

"Dividend

worth

10,000

estate,
..^reading time,

hospitals

v^m

institutions

^fundsm

out

described above for

cers'

was

discontinued after

due

years

changed

conditions—the

"The
of

Custodian

100

years

Part

expended for
carried

was

INVESTORS

in¬

was

some
out in

was

public work1906

the

with

NET ASSETS OF

which,
equipment, cost
$438,492.60 and. cannot be replaced
today for over twice that figure.
The
second
part of The Fund
(originally about $1,250), now ac¬
cumulating for the second 100

with

Certificates of Participation in

INVESTMENT FUNDS

investing their capital

\^Z

Franklin

the

Technical Institute building

nnds

* IN

companies!

provision—that at the end

construction

charities!

few

industrial

Fund

others

churches &

vested and allowed to accumulate;

eystone

U;'

banks & trust

DIVIDEND

necessary

?Sff ii
;

v. ''i'-

•

SHARES, INC
APRIL
~~~NvAPRIL:30,

■

1948

y4l$59,000,000

INVESTMENTS

BONDS

(Series B1-B2-BS-B4)
building

petroleum

utilities

chemicals

non-

automotive

u.s. govt

cash, etc.

securities

(net)

PREFERRED STOCKS
(Series Kl-K.2)

COMMON -STOCKS
(Series S1-S2-S3-S4)

INVESTORS MUTUAL,

lis iNc.i'SS|
Dividend Notice No. 31

Prospectus from

The Board of Directors of Investors

investment dealer or

Mutual,

Inc. has declared

twelve

four local

share payable on July

cents

per

quarterly dividend of

21,1948, to shareholders

Tke

Keystone Company
of Boston
50

Congress Street

June

record

30, 1948.

ferrous
E. E. Crabb, President

metals

MISCELLANEOUS
RETAIL TRADE

TOBACCO.

accessories
...

Principal Underwriter and
Investment Manager

RAILROADS.
INDUSTRIAL

MACHINERY. ~
t

Boston 9, Massachusetts

Shares"

hit

with

:•

April 30.

may

words,

pension,

original plan of lending
'Young married artifi¬

"•*.

Calvin

Shares"

j. A picture

SZiiiiilL

' T

accompanying graph de¬

the next 100 years.

money

not be
as

the

Chinese say, but it saves a lot

^individuals

k colleges

•

compared

$59 million
the

April 30,

was

to be spent for some

iNCC'OSAItD

■13

interest one-tenth
part of the principal.' He further
specified that at the end of 103
years approximately three-quar¬

con¬

:wv';:v>.y

borrower ta pay

each

...

company

physical details

interest

with the yearly

your

broadly diversified
can
be liqui¬
any time.
You are also
providing your beneficiaries with

agement and

set

are,

loaned to 'Young mar¬

and

artificers

balanced

in effect, setting
up a continuing trust fund.
You
are giving them active investment
supervision by experienced man¬
you

"Upon Franklin's death irt 1790,
of the gifts he provided was

$5,000

members

one

ried

If your

mutual

executor

your

Boston.

aside

most salable

are

left

Institute

these
apt

are

and

best

which

pay

result, the weaker securities

pass

i directly to them without-admin-

securities to pay these charges.

1790

farsightecj,

the

has

should

decide

charges.

death without the neces¬

your

the

Gifts

recent bulletin, Wellington
points out:
r'r «

"You

the

way,.;<

the basis for The

was

Technical

Franklin

pub¬

this

ciples of compound interest/L

"Much less known are his

there

sell

sity of having it administered by

the

"At

survivorship.

property would pass to your wife

such

uted

from

following J excerpt

The

P,VWlVPWv'SPT0'WP|Vwv,vv,wivv,V,wi

small

original gift has contrib¬
worthy value—a trib¬
ute to beloved.Benjamin Franklin
and his knowledge of the prin¬

Benjamin Franklin Bequest

need

property

your

be any debts or taxes to pay, it
makes it easy for your executor as

you

right

the

each

value.

same

"In

avoid the adminis¬
tration of your estate, save all ad¬
ministration expenses and elim¬
"You

ueneliciaries

bulletin.

where in this

held.

;

it is

mated

stitute.

"Both night and day classes are
College degrees are not
awarded because cultural subjects

lawyer to

make equal gifts to

you can

•

Bonn Funn

received

have

students
but

the

mutual

best

50 State Street, boston

Manhattan

original

engineering school costs.

his

among,

Franklin's

well

has

work,

the

all

about the efforts of a salesman to sell securities to a
prosperous Mid-Western bookie.
■
.'■*:* VUU
The salesman started out trying to sell the bookie a well known
common
stock
listed
onthe^
"Board."
The bookie listened to years, amounts today to well over
his
persuasions,
and
said,
"It $900,000!*
recently told

sounds like

UUM

.Diversification!

executor

the

President of Broad Street Sales Corporation,

Woodford Matlock,

the

realizing

perform.
They may think that
their lawyer
will take care of
these tedious and difficult tasks.

UBy HENRY HUNT

The Winner,
Prospectus

executors in

without

duties that executors must

many

•

often

"Husbands

name

Thursday, June 24, 1948

OTHERS

INVESTORS SYNDICATE
Minneapolis, Minnesota

GRAPHIC BY PICK S. R. L

Volume 167

THE

Number 4710

COMMERCIAL

_With respect to complying with

National Campaign on Trust Shares

Arthur Wiesenberger & Co.,

Stock Exchange members, set prece-,
dent in launching advertising campaign under approval of SEC. .,,
Maps program for working with dealers for distribution of openend shares, and initiates extensive national advertising campaign.-

attached

material

the

going to dealers a
opinion of Edward

of the
Cashion,

copy

Chief Counsel of the

"Everyone, as a member of society, has the
right to social security, and is entitled to the real¬
ization, through national effort and international
cooperation, and in accordance with the organiza¬
tion and resources of each State, of the economic,

Corporation

Finance Division of the Securities
and

Exchange Commission, from
Wiesenberger & Company
"you will note that these ads
unobjectionable if used in

of the Securities Act of 1933 a
program of advertising investment trust shares of the open-end type
has been launched by Arthur Wiesenberger & Co., members of the
New York Stock Exchange. With the approval of the Securities and

which

Ex change

offering without

For the first time since the passage

Commission

procedure
been

this volume of brokerage

has

devel¬

business;

he may subscribe to the service
for a straight $100 fee, payable
Dec.

later than

oped whereby

not

it is

15, 1948, the

sales

now

sible

adver¬

tise

the

and

advantages

of
open-end
shares.
,

ers

direct

investment deal¬

their own name
communities.
A typical

Arthur Wiesenberger

these

throughout the country for use

over /

this

for

service

available

only

needs to do to
pay

will

theme

selected group of

dealer

ads

shown

must

not

exist

your

nection with' the

other words, if you

formative

create

his

New

minimum

gross

connection

with

booklet

the

entitled

first

conclude to

particular

any

fund, then these ads
On the other

deliver

favorable conditions of work and pay,

con¬

tion

phlet advertised and

dealer

"Solv¬

be used.

merely

one

on some

security

"Everyone has the right to rest and leisure.

with¬

circumstances, objectives, and

the

inves¬

■

fund cannot

tisements."

V'/;"

being

to share in scientific

..v

We should like to

Mrs. Roosevelt

see

specific meaning into such phrases

some

We doubt if

but

did

offer to sell,

very

nor a

the

assign

these.

as
an

effort,

enunciated

could

they could succeed in such

they

scarcely be

some

of the others active in these matters try to

This announcement is neither
The

Rights—U. N. Human Rights

Commission.

,7.

advancement,"—International

Declaration of Human

the adver¬

use

•

"Everyone has the right to participate in the
cultural life of the community, to enjoy the arts and

brokerage income of $200 during ing Your Investment Problems," offered in that particular case,
1948, says the Wiesenberger firm. which presents the various rea¬ then these
advertisements
may
They indicate that gross commis¬ sons why the average investor can
not be used, because they in effect
sions on the purchase or sale of be profitably served with invest¬
1,000 shares of $20 stock would ment company
shares.
In less amount to an offering in advance
do the trick and that they will be than 2,000 words this booklet pre¬ of a
prospectus. It is obvious that
glad to accept "collect" teletype sents one of the simplest yet most a dealer whose entire
security
calls
from
firms
that
are
not convincing explanations of the in¬
business comprises the distribu¬
N. Y. S. E. members. If, for any vestment company idea that has
tion of a single investment com¬
reason, a dealer cannot give them ever been published.
pany

to determine the

so as

of the; security

'J,:

if.

tor's

considering

suitability

or more

comment

first

preferences

"Everyone has the right to a standard of living,
including food, clothing, housing and medical care,
and to social services, adequate for the health and
well-being of himself and his family, and to security
in the event of unemployment, sickness, disability,
old age or other lack of livelihood in circumstances
beyond his control.
•
' ■ ■

recom¬

you

si<

SjS

inquirer the pam¬

against unemployment.

con¬

open-end

may

hand, if

the

"Everyone has the right to work, to just and
and to protec¬

out

advertising, Arthur Wiesenberger
& Company have prepared an in¬

discuss

mend

spe¬

sider an inquirer's circumstances,

you

rights set out below.
*

of these ads.

use

in their
example specific open-end

below.

enough

cific

social and cultural

prospectus. This

part to sell a
registered security in
on

prospectuses

York
Stock
Exchange or New
York
Curb Exchange brokerage business
us

there

means

intent

not to amount to

objectives, and preferences before

The

thing

a way

tising by Arthur Wiesenberger &
Company is scheduled to com¬
mence about July
15 and at the
same time advertisements similar

many

features

such

points out.
A campaign of national adver¬

in¬

vestment deal¬
ers

are

promotion literature per¬
taining to the advertising service

pos¬

for

say,

Communism—or Mere

the Federal Securities Act of 1933
there

(2753)

CHRONICLE

&-FINANCIAL

doctrine

different from communism.

solicitation of an offer to buy any securities.

offering is made Only by the Offer and the Purchase Warrants referred to below,

7;^

7;- /r;,,

To the Holders of Bearer Share Warrants-

;:7' ;7-V:'
'•j''

EVERYBODY TALKS ABOUT

•v

v:V'"•

.v.

•

Whether it shall be General Motors

Corporation

Whether

—

buy

sell

The investor faced with such

should know

*'i*v

.v.

•.

wmmmi. 8,728,190
fully paid and non-assessable, of Common Stock

777777f:.V;

or par

value

70V:

INTERNATIONAL PETROLEUM COMPANY, LIMITED

~|§

problems

about Investment Com¬

without nominal

Radio

—

:: 7 '

Rights, evidenced by Purchase Warrants, to purchase and to apply for

;

THE "WHETHER"

IMPERIAL OIL LIMITED

•'

vrV'-'

at the

price of

$9,20 (United States Dollars) per

panies. The shares of many of these companies

mon

wide diversification of good com¬

represent a

are

being issued by Imperial Oil Limited (hereinafter called "Imperial") to its
Such rights will expire at 3.00 P. M. on September 30, 1948.

shareholders.

stocks—selected by experts of seasoned

judgment and ability.

Imperial has appointed MONTREAL TRUST COMPANY at its offices in each
of the following cities in Canada: Halifax, Montreal, Toronto, Winnipeg, Calgary and
Vancouver to act as Agent of Imperial for the performance of the various ministerial
services required in connection with the Offering.

If You Are Interested in
Skilled Minds

Well

Investing in

Securities 7

A copy of the Offer and the
the Purchase Warrants, may

;;

Read

"Solving Your Investment Prob-

lems". An
written
on

interesting and factual booklet

vestors

large

Write
you

small,

new

and old.

copy

without

cost or

Warrants to which they are entitled, holders of bearer
Imperial must present their bearer share warrants, with Coupons
Number 70 appertaining thereto attached, to the said Agent, at one of its offices
specified above, at or before the expiration time specified above, whereupon the said
Agent will return such bearer share warrants, together with the Purchase Warrants
issued in respect thereof and a copy of the Offer and the other material pertaining to
the Offering, after detaching said Coupons Number 70 as. evidence of the issue of such

li'

will mail
■'

obligation.

Purchase Warrants.

"7 Purchase Warrants
•.

-......

■

//jvesfmenf Securities

NOTE:

■,

•.

...i

•

,H .r:

:
v

.'>',7-^;'•

•

■

......

■.

Registered shareholders of Imperial Oil
'

BUILDING

(BANK

NATIONAL

FIRST

■

By Order of the Board of IMPERIAL OIL LIMITED
H. H. Hewetson, President.

YOUR FIRM NAME
v

will be available on or about July 3, 1948
...

,..

•>

;

share warrants of

Companies... for all in¬

phone today, and

TRUST

In order to obtain the Purchase

•

by America's foremost authority

Investment

COMPANY, Agent, at one

other material pertaining to the Offering, exclusive of

be obtained on application to MONTREAL
of its offices specified above.

June 18, 1948, will
*

Limited of record at the close of business on

be fully advised by mail on or about July 3, 1948.
.

i•

•

;
»«t

(2754)

THE

COMMERCIAL

FINANCIAL

CHRONICLE

Thursday, June 24, 1948

93al H, Dewar Nominated for President of

Association

Aug.

Investment Bankers Association
Hal

America, it

was

an¬

Nov. 15-18, 1948

One of the traditional investment favorites in trie raiiroaa :aexa
that has failed to live up to
expectations in the postwar years has
been the Louisville & Nashville/ There has been a marked
inability

following

(Denver, Colo.)

Denver-Rocky

Group of IBA joint Annual
Party at Park Hill Country Club.

nounced by Julien H. Collins, Julien Collins & Co.,
Chicago, President
of the Association,
Named >with Mr. Dewar were the
nominees for Vice-President:

1948

Mt.

Dewar, partner in the San Antonio investment firm of
Dewar, Robertson & Paneoast, has been nominated as the next Presi¬
of

27,

Securities Admin¬

the Multnomah HoteL

Bond ' Club

dent of the Investment Bankers Association

istrators at

National

(Dallas, Tex.)

Security Traders

Asso¬

ciation Convention.

in the years since the end of hostilities to
get expenses, and particu¬

Dec.

larly

investment Bankers Association
1948 convention at tne

transportation

control.
Wr..

This

did

undet^

costs,

not

cause

Last

any

particular concern in 1946 wheh
quite a few of our major carriers
were finding it
difficult, or impos¬
sible to quickly adjust their oper¬
ations to the changing traffic con¬
ditions in an inflationary period.
Continuation

the I

Louisville

year

the first

four

rent year
almost $1
1947

months

the

Dewar

Albert T.

cur-:

period, to $1.37.

weather

months

conditions

and

has,.however,, given rise to

strike

uneasiness in many quarters;.

the' increased rates

opening months of

and

the

March

year-to-year

the

coal

April.

comparisons

vestment

Traditionally Louisville &Nash4
Mile-has'"been considered as "drf
inherently efficient 'property to

operate.

Hazen S. Arnold

here/ on shopld > be considerably
m o re
favorable,. / Nevertheless,
little,

for

instance, the

1937-1941,

20.4%

from

1947

improvement over
is expected for the

any,

results

Tne

$15,000,000

Cincinnati

Gas'&

bonds,

priced

first

bonds/: 2%%'series of

Co. i The

full year 1948.

gross

through^ to net operating income

issue

new

• group
which
offered to the public;

June 23

company carried

average

101%

due-

Electric

1978,

are

and

accrued in-'
disappointing oper4
before Federal income taxes. This
atihg performance since the OndF teresh-vfo- /yield /approximately'?
2.82% % 4$- maturity; The issue/
was
just about in line with the of the war, many financial
people was awarded
to the group at com¬
performance
of
Nickel;/Plate's Were/ to say the .least, shocked
petitive bidding on June 21.
20.6% and not too far below. Kami/ when it became known that the

banking

mortgage

In the period

Morgan Stanley & Co. and W. E.
Hutton & Co.- jointly head an in-a

With

in effect

now

Cincinnati Gas 3% Eds.

early

bituminous
and

■

W. E. Million & So. Offer

course,

these'results reflected unfavorable

relatively

Morgan Stanley and

declinet:i
share from the like;

some

Armhage

'/"*r

the

earnings

1947

(Hollywood, Fla.)

Hollywood

Beach Hotel;

$5.63 i
its outstanding stock. Foi

1948

Nash-;

ville reported earnings of
share

high transportation ratio through
the

5-10, 1948

Aside from

Proceeds

City Southern's 24.'l;%/;iin the. company contemplated
sale
ol
year 1941 the carry-through -$30'milHon of term'bonds
tp com¬

sas

from

the

single

bonds

point lower thari; that "of- pensate-' the treasury for capital
Nickel Plate but greater,, than-that» improvements.
It had generally

portion

gram of

the-utility

was

one

will toe used
the

sale

of the

finance

construction

pro¬

company. Dur¬

City Southerns-Last - beenr expected that the railroads ing the current year the company
to v. spend - - approximately
year Louisville & Nashville *car-/ would continue their conservative .plans
ried only 13.0% of grogs
through' policies of financing additions anc $18,000,000 for additions and im¬
provements to its electric gener¬
to
net operating incomer before
betterments; o t h er than hew
Federal
income
taxes///while; equipment, from earnings and at ating ^stations, ^transmission and
of

Kansas

Nickel
John F.

Fennelly

Joseph T. Johnson

Laurence

T. Armitage, Coffin
Incorporated, Boston;

the I. B. .A. and in 1929 wasBresi-

carried

15.8L%

well.ahead with 29.7%.

was

Albert

Plate

through and Kansas City Southern

M. Marks

distribution-

systems, gas " manu¬
facturing plant and gas distribu¬

the-same time pare their existing
If this policy is now to br

debts.

reversed

it warrants serious

tion

systems'■

con¬

•»•«.

•>

Giving effect to the present fi¬
are
the industry is apparent- in the roads
going to fare when nancing the .company will have
;
Hazen S. Arnold, Braun, Bosr tion, Texas Investment Bankers
trend of the transportation^ tatio^ business returns to more nearly outstanding funded debt of $60,-,
worth & Company, Toledo; .:
Association.
500,000; 270,000 shares of 4% pre¬
over
a
period of years. Back in normal levels, as it ultimately'
ferred stock, $100 par value, and
Following graduation from the the early boom, 1929, Louisville & must.
»
i John F. Fennelly, Glore, Forgan
2,244,000 -shares of common stock.
& Co., Chicago;
/.•//• r/ University of Texas with a B. A. Nashville's transportation ratio of
degree in 1923, Mr. Dewar entered 34.1 % was just One
point higher?
Joseph T. Johnson, The'Mil¬
the investment banking field. He than
that- of the industry as a|
waukee Company, Milwaukee;
was with the
Chicago office' of the whole. By the bottom of the de¬
i Laurence M. Marks, Laurence
Guaranty Co. of New York for pression
in
1932
Louisville
&
M. Marks & Co., New York. /
one
year
and .then with'J. E. Nashville had "
just 'about* caught;
; Nominations, made by the board Jarratt Co.,
San Antonio, from up with the industry and .from
In Investment Field
of governors of the Association, 1924 to 1929. He became
manager there on its ratio consistently :ran I
are considered tantamount to elec¬
of the bond department, Alamo below that
of all Class I carriers!
An. underwriting, group headed;
tion in the I. B. A., which will act National
Co., San Antonio/ in as a group. By 1941 it had reduced June 25/1948
(Cleveland, Ohio)
on
the ticket at its annual con¬
jointly by White, Weld & Co. and.
1929, and in 1932 organized his its ratio to 31,1%, or
about,three
Bond Club of Cleveland spring Shields & Co. is offering to the
vention scheduled for December 5 present
company, He 4s a director points below the boom 1929 level
to
10
public a new issde of 200,000.
at
the
Outing at; Country Club.
Hollywood Beach of a number of companies.
This 1941 ratio of Louisville &
shares of, $4.52. cumulative pre-,
Hotel, Hollywood, Florida.
June 25, 1948
Nashville was two points below
Mr. Dewar was a member of the
(Milwaukee, Wis.)
.

Burr

Deterioration

dent of the predecessor organiza¬

with

'respect

to)

to bow the stocks of such

cern as

COMING

While, Weld & Shields;

EVENTS

And Associates Offer

•

Consumers Pr. Pfd.Stk.

Mr.

the

Dewar

has

been

active

board of governors, National As¬
sociation v of
Securities :

Association

been

the

since

1943,

President
returned

since >1935,
has
board of governors

was

in
to

elected

1944,

and

has

been

presidency

year

first

since. He has served

national committees

of the

including the

Federal

Legislation,

ness,

1940-42,
and
Upon his election to the I.

Vice-

each

that office

ciation,

Dealers,
Chairman,
1942.

Asso¬

Administrative Review

Dewar has also served

the financial

various

committees of the Texas Group of

become
have

N. A.

was a

the

headed
S.

member of

advisory committee,

ment, and during
was

World

member- of

Committee of the

the

War

National

Securities

In¬
;

Major Interest in

Paying
■\

Excellent Return

the

ever,

fertile

field

for

investment

capital.

upwards of 12,000,000 visitors, it will have entertained
938
885,000 attendance within the present year.

year

the

sections,

conventions

shopping and

amusement

section and its

district, within

transportation system.

The Seaside contains 249

solarium;

rooms

most

end

Pennsylvania Ave., is

the

two

blocks

Boardwalk's
the

cepted

main

criterion of the op¬
erating performance of any indi¬
as any

vidual railroad

of the

industry.

the first postwar year, 1946,
Louisville & Nashville's transpor¬

tationratio

was

large

open

For

ratio

than

did

the

industry.
As .between 1941 and
1947,
Louisville
&
Nashville's
transportation
performance
(de¬

Frank Gravatt,

the

Federal

before

income

would

adjustment

taxes,

than $2.60 a share on the stock.

business
*1

financial

status

this

proposition, write

July 9, 1948

1-1063

i..

will use the pro-:

-sale'to'fih^hcei/inl

Philadelphia Annual Summei
Outing at the Tavistock Country
Club, Haddonfield, N. J.
9,

•

Golf

1948

(Philadelphia,

Tournament

for

Pa.)

STANY

13/ 1948- (Detroit, Mich.)
of

and

Michigan
Annual
Party
at
Lochmoore

Club.

Club

;

the

Toledo

Stuart

Co.

public

Haisey,

offering

first

mortgage

due

1978

July 19-22, 1948 (Portland, Oreg.)
Annual Convention of National

Co.

Inc.

bonds,

3Vs%

101%%

The

is|

today f
Power!

firm

and

won

•

award of the bo ads at competitive '

sale

its bid of 100.5399.
be applied

financing of the
struction

to the

company's
and

program

corporate purposes,

con-

other

..-lu

/ The bonds will be redemable at f
prices ranging from -104%%' to:
100% and at special prices scaled :
from 101% to 100%.
The company is a public
utility
operating .company engaged in the :
electric, water and gas business
and is qualified under the laws of

California and Nevada to conduct
such business in those states.

With S.

annua)

Inverness Country

/at

interest.

Proceeds will

Investment Traders Association

outing

i./l

Halsey, Sluarl Offers

accrued

Telephone BOwling Green 9-6400
NY

part, its current construction /^ro- j
"gram/ / / ;///;:1

series

(Louisville, Ky.)

July 16, 1948 (Toledo, Ohio)

Teletype

and

years,

of $3,500,000 Sierra Pacific

Country Club, Grosse Point, Mich.

New York 4, N. Y.

five

Cleveland Security Traders As¬
sociation summer outing.
:

Summer

25 Broad Street

$104,725 thereafter.

Security Traders Association

sundeck and

the

making'

July

Special Securities

for

$105,725/

July 9, 1948 (Cleveland, Ohio)

Cup at Philadelphia. //

Bonds

redeem-|;

per

Sierra Pacific Pow. Bds.!

best

$106,725

Winged Foot Golf
Club, Mamaroneck, N. Y.

July

Guaranteed Stocks

per.

/;*•// 1

nament at the

Bond

Steel.Pier Block, Atlantic City, N. J.

Association 49th annual golf tour¬

July 9,1948 (Philadelphia, Pa.)

this

CBARAHTEED RAILROAD STOCKS-BONDS
on

| Western Pennsylvania Group of
IB A Outing at Rolling R ock Club:

teriorated 3.8 points in relation to
the industry.
Based on the 1947
of Yevenue

$102:725

prior; to July 1, 1953, at

The compan.y
ceeda from/the

June 25, 1948 ^Pittsburgh, Pa.)

/ Bond Club of Louisville Annual
Party at Sleepy Hollow- Club.

and parking lot.

complete details

.■■/■/

42.1%/,the/same jTune 29( 1948 (New York City)
earners/Last // NW York Stock Exchange Golf

wider rise in its

value,|

Co. / The,

The/new. stock will be

able

of New:

that of all Class 1

one

garage

pugh-onrHudson, N; Y,

Detroit

and 199 baths /

priced

;

performance, with its York; Annual Meeting * at Sleepy
Hollow Country
distortions, can not be ac¬
Club/ Scarbor-

of the finest cocktail
lounges in Atlantic City; Absecon Room
seating approximately 2a0 persons for banquets and
meetings; Garden Room
seating 80 persons; dining room,* play room,
spacious lobbies and lounges;

laundry,

Municipal. Bond Club

// ;

center

ocean

id the

than

accommodating

question—The Seaside—is one of Atlantic
City's
'round hotels with a long established clientele.

The location of The Seaside
in one of the finest hotel

many

par

Ppwer

share aiid accrued dividends.

war

equivalent,
more

The property in

popular

The

/ ''

stock,; without

I Milwaukee Bond Club
Outing of'
Cdpsumerg
it /Merrill Hills • Country/ Club: Stock is

level

Investment

In addition

industry,

reported
transportation

Atlantic City, through its chief industry—its hotels—is
today,

other

ville

Famous Atlantic City Hotel

it was 41.8%, or 1.8 points
above the industry average.;More-*
over, for the first quarter of the
current year Louisville & Nash¬

FOR A FAR-SIGHTED INVESTOR
To Secure

industry,

year

AN OPPORTUNITY

'erred

the

between -the years 1929 ;
and 1941 the road had'
imprdyeld,* Waukesha,
its
transportation
performance
three points in relation toY/the* June 25, i948 (New York City)

dustry for War Financing;

words,

Committee for Economic
Develop¬

and

Group Chairmen's committee. Mr.

and

1945 Mr, Dewar

Education,
Busi¬

will
will

both L B. A.

numerous

Small

he
who

man

that

(Special

B.
The

Franklin Co.

Financial

Chronicle!

LOS ANGELES, CAL.—ConeH.
Johnson is with Samuel B. Frank¬
lin

Co.,

215

West

Seventh

Street.-/^;/y v/Cv

COMMERCIAL

THE

By MARCUS NADLER*

The Stock Market

r ;

By WHITMAN C. HAFF

; a

With Ward & Co.

filr. Half ascribes failure of stocks to ad

:•

ranee

CHRONICLE

FINANCIAL

during last two years'

f:
,

Professor of Finance, New York University

Asserting rearmament and European aid has added new inflationary potentials, Dr. Nadler foresees likelihood of shortages becoming more acute together with renewal of deficit
spending. Says we
may ex-

pect further increase in hank

requirements and rise in interest

reserve

rate

Treasury short-term bor-

in line with rising corporate earnings and dividend
Urges strict economy in non-military government expenditures and concludes a "rearmament
payments fo'^ g rowing.
boom would have entirely different effects from those
developed in 1941."
exaggerated reports of coming business depression. Holds,' with j
heavy public spending, it is doubtful if business recession can come
f 'f The. need for rearmament has injected a new element of uncertainty in the
economy
of the country.
vi^7:7; for several years.',
A77 7.%'/
Coming on top of the reduction in taxes and tho passage of the

Perhaps there is

other industry in the country where there

faster changes than in Wall Street.

are

The stock market is somewhat

European

Recovery Aid Bill, it has added
!

7''

.Jy: like "The 'Ole Mule." It often does the opposite that is expected of it.

yet be fore-3>
the

For

seen.

Recently stock prices went through the Dow Jones 1947 and 1948
highs. It is difficult to figure out
why this did not happen a year parison to corporate earnings but

(1) The

and

half

earnings

^hen

ago

were

corporate

at their highest in

even

history and which has continued
through-to today. Extra, special

and

increased

dividends

seemed

almost

conclusion that such
decline if

have

rate

Government

foregone

this

writer's

ruler

long

for

industry

the

re¬
on

economy,

because'

great deal will

large

all

the

over

At least,until Europe can

cultural needs.:

r,; -7 7| With all this spending and de¬
mand, it is doubtful if a business
recession can come for at / least
several & years.
One of the most
hopeful signs is' that the public
interest in the. stock market, at
the present time, is very 7 large
3nd might continue for sometime

situation

What could have been the

r its
own
manufacturing
plants and provide its own agri¬

existed.

spending

rebuild

experience
a

world.

be announced.

has such

armament

depend

cause

this most peculiar condition?

the

magnitude of
the appropri¬
Marcus

taken

that

will

tion

potentials

The

this
and

be further elaborated.

and

exaggerated

re-

have

tried

low

assure

stocks

their

were

clients

selling

#Ian

how

forv war'preparedhess

'moliwirciario/t

really started.

com-

obligations

777;7

than to

buy them.

prevent

turn

raises

the rearmament expenditures

this

deficit

will

the

convert

surplus; into

easiest

present

budget

deficit.

the

This

question

could

how

rations

The

Should

met.

deficit from developing
new taxes on corpo¬

by imposing

well

individuals.

become

to
spend such large amounts for mil¬
necessary

tdtal

of course, would be
to sell short-term government ob¬

military expenditures for the fis¬

ligations to the commercial banks.

aged above it would be desirable

cal

1948-49 will not exceed
$14 to $15 billion and that econ¬

Through

omies; will be made in the other

broaden

t?e much larger than are

now an¬

ticipated,7 or *.(2)that the
year

the

way,

itary

market operations

open

Federal Reserve Banks could

credit

the

base

rmSwiid
creased.a'

in-

be ^materially

The

consequences

development, briefly sum¬
- _«

fort

distribute

*An address

by Dr. Nadler be¬
fore the* Virginia Bankers Asso¬
ciation^ Hot Springs, Va., June 18,
1948.

'•*

•

■

7v'.-V'-.

impose

govern¬

the

deficit

government.
economy

solutely

essential

deficit from

This

Elmer E. Myers, B. W. Pizzini & Co., an active member of the
Security Traders Association of New York, is the proud father of a

7;7 777'-

son, Stephen Elmer Myers, born May 16, .1948 at SL Clare Hospital,
New York..
-I
.'y'ft
77,;v-'.7;-:7:':^7
.{■ ftftvfti
••
v7,:'»
v57- 77. 7
'• 7'.

prevent

the

need

„

r7.

obligations to ultimate in¬
vestors.
It is doubtful, however,
whether such

successful

effort would'be

the

because

military ;

would

expenditures

the

press

in¬

added

from" the' in¬

resulting

creased

offer to sell

»•.V'

V '

"fC

1 /

Even now,
after the recent reduction in per¬

sonal income taxes, the rates are
still very high and have given rise
to

the question

of their effect

the formation of

purchasing

other

controls

the,

could

ily.

economy.

raw

Allocation of basic

materials

probably work

solicitation of

nor a

offer to buy

of these

any

•

7.;;0;y.;-v,7 7
.'.*■!«,

* * ,/'r^

v»-r V7

f ' /

•

1 7 xV,

«• *

'•>';%

ff standard Joil
'

;•
■»

;;.,

.'7

;

BOND CLUB OF LOUISVILLE

,>•. The; Bond Club of Louisville will hold its annual party, ori July

9 at the Sleepy Hollow Club.

,
.

($25. Par Value)

£he~Security- Traders Association of Detroit and:Michigan* will
their annual summer party on ; July - 13 at the Lbchmoore

exchange for

;

Country Club, Grosse Pointe, Mich.
'AD LIBBING"
*;

•

MICHIGAN

hdld
#

—

CAPITAL STOCK

SECURITY TRADERS ASSOCIATION OF DETROIT
AND

Company;

<Incorporated in New Jersey)

INTERNATIONAL PETROLEUM COMPANY, LIMITED

COMMON STOCK

•

In writing.our notes today, we? are quite

v/eather,
Maybe

Republican1; Convention,

the

foregoing is the

reason

wee^ > has only increased $500.

and
why

confused due to the
perhaps personal reasons.
our

gross

(without nominal

or par

value)

•

'*.

during the past

7 I

offering 1,265,255 shares of its Capital Stock in exchange for Common
International Petroleum Company, Limited in the ratio of
Company for 20 shares of Common Stock of International
Petroleum Company, Limited. The terms of the exchange offer are set forth in a Prospectus, dated
ft'lune 11, 1948, copies of which are obtainable from GUARANTY TRUST COMPANY OF
YORK, 140 Broadway, New York 15, New York, or MONTREAL TRUST COMPANY, 61 Yonge
Street, Toronto 1, Ontario, Canada, who are acting as agent, and sub-agent, respectively, for the purpose of effecting the exchange.
,
.
■'
«
'
7
Standard Oil Company is

We are reminded by the Weslelyan "Christian Advocate," "Too
many people quit looking for worki when they find a job." Let.us
not assume this attitude when it comes to placing an ad in our

Stock (without nominal or par value) of
73 shares of Capital Stock of Standard Oil

„

"Financial
our

Chronicle" NSTA

committees.

soon

Year Book
we

hear

when

from

asked

serve

Chicago,

Denver and
Seattle, we will announce our complete committee, at which time,
we are confident our entire
membership will be mpre than satisfied
with results.

":
•i

7^:

K. I. M. YOUR NSTA—"BUY ADVERTISING."

.,t

;

'+/ '

HAROLD * B.

7;7

'7.7

r
1
'
"7C7;7f ;7'7a;C7 ':77i:
,

;

SMITH,

Chairman

Yearbook Committee^ NSTA^
Collin, Norton & Co.,
120 Broadway,
New

York

5, N. Y.

7-7/W
•>>

t
,

»'

,77
^

y''7':r'ft-7'7. 7 7,77 " ft v7;;7!- !• ;7/ ;•••

STANDARD OIL COMPANY,
"

Eugene Holman, President.

•

»•

'';:;i77 7;' 7;:

>.Dated: New York, N. Y., June 18, 1948

'' "

satisfactor¬

It v is !, doubtful,
however,
(Continued on page 33) •

Aug. 27 at the Park Hill Country CI

equity capital.
(3) Should
military expendi¬
tures be as large as we are now
assuming, it may be necessary to
impose allocations, rationing and

1,265,255 SHARES

BOND CLUB OF DENVER
The* Bond Club of Denver will (hold its joint annual party, withthe Rocky Mountain Group of the Investment Bankers Association on

for further

back-breaking taxes.

7;7;7'77:!7!'v'77f777;:77:/77;^

of
ab¬

going too far, there¬

creating the

SharesJ The offer is made only by the Prospectus,

part

ment

is neither

announcement

become

ASSOCIATION

envis¬

financing
Moreover,

the

will

government

taxes in order

new

further

utmost

power.of the dollar, which may

expenditures

prevent

the

flation

NEW

disposal
experi¬

marized, would be as follows:

at their

investment,

the

There is, of course, a
possibility
that Congress1 will endeavor
to

such

NSTA Notes

savings, institutions
sums

(2) Military
expenditures
of
this magnitude would undoubted¬

hae

7ft7:V 7f

'"7*''' 7 7'"

the
com¬

last few months has
shown that they are more inclined
to
sell
government

not

and

current

ence

prevent the
increased
military expenditures
from converting the present large
budget surplus into a deficit. Two
assumptions are possible: (1) That

■

difficulties

While insurance

large

for

come.

the

panies

expenditures of the Government. country and thus enable the com¬
The economic consequences of re¬ mercial banks to acquire addi¬
ports of "the coming big business ;; i According: to the ;New;-York armament will
depend on which tional billions of dollars of shortdepression," efforts of the Admin¬ "Times," consolidated net income
of these assumptions materializes. term
government
obligations.
istration to defy the law of suppi
reported by 297 industrial manu¬
Such
a
development would be
and demand,-strikes, the foreign
facturers for the first quarter of I|?lieti:"usvassume, first, that mili¬
taryTekperiditures during ■the com¬ highly inflationary in character
situation and other, reports which ! 1948 shows an increase of
-26$ '|
tiecaqse it would add to the volvirtually made the public rur qver the first three months of last ing fiscal year will amount to well
: •
:
vvT
; "'.ume.jof, bank deposits, which alaway from the stock market such year. This, of course, has occurred overx;$20 :billion.
In that case it
31*0
greatly swollen ' from
wm£>*■» ■firim
as
theyl would \ from an -atomR; heforerahylarge
.spewing by^the rhoy^;; also tie assumed that the developments during the war.
bomb.
Therefore : many'
good
government under the Marshall tmmWr'!!of men in the armed 7 The Treasury could make an ef¬
stocks "went begging." Salesmen
Overstated

danger

circumstances

them, which would further
to

Treasury.

situation
need

even

these

holders of Series E, F and
bonds might endeavor to re¬

add

inflation¬

evident

quite

power of the currency.

under

deem

the

decrease.

save

many

enlarged
military expenditures, the supply
of goods available for consump¬
ary

ures

because

7—___

people to

many

Moreover, there is

military demand the produc¬
of certain
types of goods,
notably durable goods, will have
to be curtailed.
Hence, at a time
when the supply of money avail¬
able
for
spending will be in¬
creased

——.—7

purchasing

To meet

acute.

•/'

less
because of the constant loss of the

particularly in
products, will be¬

tion

are

meas¬

much

outcome of which cannot

■

induce

are

the

fiscal

Nadler

which

pronounced,

come

ations and the
Dr.

ijs rapidly making this country the

stock would

rising higher
and
stock
prices
were
completely 'ignoring them
and continually declining. Never,
in

fects

some even un¬

other things, all, of which',

many

earnings were
higher while

and memory,

probable

few

millions for the Marshal Plan and

situation where corpo¬

the
ef¬

In fact it

selling only

still

steel and allied

accu-

rately

stocks,

and will be much larger. Billions
of dollars for war preparedness,

especially good divi¬

dend was about to

Here was

are

Many

quick assets. Corporate
earnings are still high and climb¬
ing even higher as witness the oil
industry.
777

all these high dividends and
earnings, stock prices, until re¬
cently, have invariably declined
and especially when these diviannounced.

today,

avail.

der their

were

little

times earnings and

fbeen paid to stockholders almost
"by the bushel basket." In face

dends

all

impossible
evaluate

shortages

moment

-."7:7—„—'■

7 ' Y.'YY-,^'

inflationary potentials, the

new
'

•.

..'7

THE

(2756)

at Mt.

were

Carmel, Pa.

CONSOLIDATIONS

business

Brown,

Bankers

and

ETC.

REVISED

Both

men

their way

trip

home after a
Chicago.
Mr.

charge

firm's

the

accounting department, had been
with the company for 21 years.
In World War II, he was a crew

CAPITALIZATIONS

chief in the Army Air Forces

with

the rank of technical sergeant. He

the first

facilities,

is also

son

the

•

director of the What

Pequannoc

the

June 17 elect¬

Rubber

Y.)

Savings

(N.

become

since

Bank

returned to the bank

discharge

associate

John

also

was

trustee;

June

and

Mr. Rockefeller's

office. Among Mr. Mansfield's new

July 1
Mr. Townsend

Responsibilities will be service as

will

and

become

President
Chief

Comptrollers,
Association

Townsend

Barnard

Mr. Townsend

;

Mr.
old, is
one of
the youngest bank Presi¬
dents in the country.
He is said
to have been largely responsible
displayed over
the last twelve years by the Troy
Savings Bank. Mr. Townsend, who
was born in New York City, is a
grandson
of
the
late
Edward
Townsend, who

President and

was

later Chairman of the Board of the

National
He left Yale University in
join the trust department

1931

Traders

and

is President.

years

for the leadership

created

This is

the

five

ments

the

and

management

Mr. Mansfield started his
as a

messenger

ers

and

chanics
he

was

bank

within
1944

made

was

two

Mr.

Committee

Association

State

York, and in 1944 and 1945
member

the

Council

was a

Ad¬

ciation
Mr.

of Mutual

Hoyt

Savings Banks.
continuing
as
a
.■44 444\/v':./v,'4';

\''.;

The Corn Exchange Bank Trust
Co.

New

York

the

announces

appointment of H. Dudley Gerard
and

John

sistant

O'Callaghan

''4

Secretaries.
*

as
,

As¬

N. Baxter Jackson, Chairman of
the

Chemical

Bank

Trust

of New York announced

Co.

June

17 the election of Frank D. Hen-

drickson, President of the Ameri¬
can

Hard Rubber Co., to the Ad¬

ap¬

pointed manager of the Rockefel¬
in

ministration of the National Asso¬

trustee.

was

ler Center branch when it

New

1933

and

opened

named

was

Vice-

President in 1940.

A year ago he
went with the head office as Vice-

Savings Banks

the

branches.

Chase in
officer of

served

Investment

the

1942

From

years.

Townsend

Chairman

President

After that

with the

merged

President in charge of New York

City branches.
a

director

Co.,

Mr. Mansfield

Chase

Treasurer

Safe Deposit
of the Episcopal
York, and trustee

♦

Corroon

elected

been

Co.,

Cleveland.

Reserved

Federal

Alvern

director

The Board of Directors of Ful¬

Cooder

elected

June

New York

Clement

Vice-President

the

He also is Trust Officer
of Fulton Trust. Mr. Cooder, with
the trust company since 1918,. is
member of the Executive Com¬

mittee of the Fiduciaries Associa¬

tion.

Princeton

graduated

was

from

University in 1907 and

Columbia

from

1910.

Law

♦

School

in
-

❖

of Governors

Re¬

discussed current developments in

Vice-

statistical services of the govern¬

Federal

of the

System

serve

elected

was

this

offer to sell

Insurance

velopment

elected
succeeding
Howard Grieve, Librarian

Eleanor
of

Corporation

Federal

the

was

Treasurer

Reserve

Bank

Cleveland, Pittsburgh Branch.
Speakers at the Financial Group

Clay Anderson, Fi¬

program were

nancial

Economist

the

Federal

spoke

Philadelphia who
"Federal Reserve Pol¬

icies,"

Dr.

Stuart

Rice

and

Dr.

solicitation of

.'4-.44 : 4

•'

54 4

gram.

•

Proposed projects for 1948-1949
are the compilation of a
selected
list of books of interest to

Agricultural

Mortgage
Bank,
announces it has ex¬

Colombia,

tended from July 1, 1948 to July 1,

1950,

time

the

which

certain

Colombian

Mortgage Bank bonds
and the appurtenant coupons may
be

exchanged for Republic of
Colombia, 3% external sinking
fund
dollar bonds, due Oct. 1,

issuance of
a
geographical * list of all bank
libraries, and the compilation of a
list of

San

change

the

may

he obtained in

any

period

bration; one of these is its story
beehive, that symbol having
been featured on early handbills
and passbooks. The bank has also
(issued a folder, recalling that 100
years ago New York had but two
post offices, contrasting with 100
New York post offices today, and
11,226 mail boxes in New York
City alone. The bank is likewise
distributing in booklet form, a
perpetual calendar.

diamond-studded
honor

with the

undersigned and such other dealers

her

con¬
Re¬

the

for

has

been

extended

from

Exchange.

Exchange

In 1929 she

June 11, 1923appointed Assist¬
and in 1932 was

was

1, 1949 to July 1, 1950.

The

exchange

offer

Mortgage Bank bonds

originally

the

was

made

June 25, 1942.

The

National City Bank of New York
is

exchange agent.
The bonds covered by the ex¬
change
offer
are
Agricultural
:

Mortgage
year

Bank

made

Miss

guaranteed

20-

7% sinking fund gold bonds

due April

Also, Mortgage Bank of Bogota
20-year sinking fund gold bonds,
1, 1947, and 20-year 7%
sinking fund
gold
bonds
due
Oct.

Kapelsky has the distinc¬
being the only woman ex¬

tion of

1, 1947.

Richard K. Hexler Joins

officer

(Special

Company

The

Financial

only do the members of the Ex¬

change and staff hold her in high
but any one who has had
any
contact with the Exchange
recognizes her exceptional abil¬

ity and understanding of the com¬
plex problems and rules of the
securities

business.

Mr. Bertram E. Alanson, former
President of the
Exchange and
many times Governor, made the
presentation with a speech to the

membership
floor.

assembled

■4444

Chronicle)

Abbett

Co.,
was

Carter H. Corbrey & Co. and

April 1,1978

thereto

head

was

i<y

:—

Eiecis New Officers
NEWARK,

lawfully offer these securities in such State;

Investment

^—11

—

(\r:-\>•

has

formed

officers for the coming year:
President:

born,

Stanton M. Weissen-

Parker

&
Weissenborn,
Newark,
succeeding
Alexander
Seidler, Jr., of the National State
Bank

of Newark.

Vice-President:

Parker,

Courtlandt

;;

Jersey representa¬
tive for R. W. Pressprich & Co.
Secretary:
C. Wallace Smith,
New
Jersey
representative
of
Smith Barney & Co.
William

Named to the Board
for

nors

Roos,
was

three-year

Gover¬

terms

were

Alexander

Seidler,
Jr.;
Harry
Miller, Nugent & Igoe, East Or¬

ange;

Moss

John

and
&

Co.,

J. Ryan,
Newark.

With Bailey, Selland
to

The

Financial

Ryan,;

Cm*:

Chronicle)

4 FRESNO, CALIF.—Neil T. Fer¬
guson has become associated with
ton

Mason

Fresno

Building, members of

the San Francisco Stock

Exchange.

Kight

Joins Walston,

Hoffman Jftaff

^Building

to*

business.

engage

was

for¬

merly Assistant Manager for the
local

office

Buckley Brothers.

Prior thereto he was with Pacific

June 24, 1948

New

and Associates with offices in the

securities

HALSEY, STUART & CO. Inc.

;

J.—The

Bailey, Selland & Davidson, Ful¬

LONG BEACH, CALIF.—Mason

Kight

Bond
Club of New Jersey at their an¬
nual meeting at the Downtown
Club, elected the following new

prior

Mason Kight Forms :

only from

* *

Bond Club of N. J.

3277 Wilshire Boulevard.

the

4'4 '

reelected.

LOS ANGELES, CALIF —Rich¬
K. Hexter has become associ¬
with

Not

MacBride, Miller & Co., who

ard

ated

esteem

Treasurer:

G. Ea Abbeti & Goa

staff

the

national securities exchange.

Times

may

watch

anniversary

Miss Kapelsky-was employed by

;

the

ecutive

* '.,:P 4 \u K'4\

announcement is circulated

wrist

25th

ant

offering

3% bonds, due Oct. 1,
exchange for the 3% bonds
multiples
of
$500
principal

Jan.

of its

for

certificates

amount

accrued interest

State in which this

Ex¬

date.

;

Prospectus

Stock

trading for a
few minutes June 11, in order to
present Miss Ruth Kapelsky, Sec¬
retary of the Exchange, with a

1970 in

The

Own Firm
The

Francisco

suspended

(Special

anil

economic letters.

bank

public's

Fund Distributors.

Price im Vi %

finan¬

cial organizations; the

SAN

formerly Los Angeles Manager for
;>

the

group on* Economic Implications
of the European Recovery Pro¬

The

nection with its Centennial Cele¬

Due

De¬
,

Exchange of Miss Kapelsky 25 Yrs.
Columbian Mige. Bds. With S, F. Exchange
FRANCISCO, CALIF.—
Extended to July I, '50

addressed

noted in

year was

Mortgage Bonds, 33^% Series due 1978

April 1, 1948

who

Time for

issue of April 15, page 1663, is
distributing various data in con¬

Clark,

International.

the

Secretary
Secretary of the Exchange,
which position she has held to

our

44L4::4

vertible

• *<• I.

Harrison

and

Bank for Reconstruction and

100th anniversary

offer to buy these Securities.
offering is made Only by the Prospectus*
or a

Sierra Pacific Power

Dated

ment

Economist

Secretary

the Budget who

Bureau of

Chairman, succeeding Laura Mar¬
quis and Amy Dene Early, Li¬
brarian
of the Federal
Deposit

1970.

The East River Savings Bank of
New York, the

of which,

of the

officials

Ryan,

Sutherland, Librarian of the Board

company.

the

ton Trust Company of

—

Walter

has

Inc.,

Lawyers Trust Co. of New York.

$3,500,000 '

first

of the

Bank

Corroon, President of
& Reynolds Corp. and

Librarian

the

Exchange

due May

The
;vf--:'<5 ••'''*•' V.'

the Special Libraries Association at ite
June 11 in Washington, D. C., elected
Marquis, Librarian of the Mellon National Bank & Trust Co.,
Pittsburgh, its Chairman for 1948-49, succeeding Ethel Klahre,
business meeting

Laura

1, 1946, guaranteed 20Diocese5of New
year 7% sinking fund gold bonds
and member of the finance com¬
44444-''-i *
* 4 *
' ,:-v 4'4; due Jan. 15, 1947, guaranteed 20mittee
of
Diocesan
Investment
The New York State Banking year 6% sinking fund gold bonds
Trust of the Diocese of New York.
due Aug. 1, 1947, and guaranteed
Department announced on June 11
He is a trustee of The Seamen's
20-year 6%
sinking fund gold
Bank for Savings in the City of that it had issued on June 9 au¬ bonds due
April 15, 1948;
thorization for the opening and
New York and a member of the
Also, Bank of Colombia 20-year
Board of Managers of Seamen's maintenance by Macy's Bank of 7% sinking fund gold bonds due
April. 1, 1947, and 20-year 7%
Church Institute of New York. He New York of a branch office at
sinking - fund
gold i bonds
due
1007-1009
Flatbush Avenue and
is a Commander in the Order of
April 1, 1948;
2145 Tilden Avenue
(corner of
Orange - Nassau,
an
award .for
Also, Mortgage Bank of Colom¬
and
Tilden Avenues) bia 20-year 7% sinking fund gold
services to the Netherlands during Flatbush
bonds due Nov. 1, 1946, 20-year
Brooklyn on and after June 10.
and after the last war.
7% sinking fund gold bonds due
*
*
*
The notice of the filing of the ap¬
Feb. 1, 1947, and 20-year 6V2%
Rowland W. Brown and Arthur plication was referred to in our
sinking
fund
gold
bonds
due
B. Smith, of Brown Bros. HarriJune 10 issue, page 2545.
Oct. 1, 1947;

This announcement is not

The Financial Group of

annual

Reserve Bank of

career

joined the Me¬
Bank, where

securities clerk.

active

Stock

Metals

1926, he served

Bank

and

with Brown Broth¬

1923

and

National

James F.

supervision of such investments.

various

Savings

Troy

corporation
Rockefeller

tigating and financing of new,
productive businesses, making
permanent or long-term invest¬

Co.

the

brothers for the purpose of inves¬

of Central Hanover Bank & Trust

Joining

Rocke¬

Mr. Mansfield

dent of Rockefeller Brothers, Inc.,
of which Laurence S. Rockefeller

the

and

finance

will also be Executive Vice-Presi¬

will succeed Harold W. Hoyt.

Townsend, who is 39

Bank.

the

Member Firms.

of Rockefeller Center,

feller is President.

President,

Importers

Inc., of which Nelson A.

Execu¬

Officer.

Chairman

committee

and

tive

member of the board of directors
as

ced

a n n o u n

that

with

for

Association of Bank Auditors and

Rockefeller, Jr., it was announced

been

member of the Execu¬

Committee

1936,

had

Harriman

Bros.

and was the bank's Auditor.

years

following his
service in 1945.

from

Smith

Mr.

Brown

tive
H.

Mansfield, who has
resigned
as
Vice-President
of
Chase National Bank in charge of
all New York City branches, has

Troy

Richard

Townsend,
The

and

Co.

Rubber Manufacturers Assoc.

ed Barnard

President

Mr. Hendrick-

Cheer Mutual Fire Insurance Co.,

Co. of

Trust

Title Guarantee and

office of the bank.

its banking

to expand and develop
and
title
insurance

New York

visory Board of the 320 Broadway

step in a program

Thursday, June 24, 1948

Special Libraries Association Eiecis Officers

United Air Lines

NEW BRANCHES
NEW OFFICERS,

were

the victims of the crash of
plane on June

among
a

News About Banks

private bankers,

& Co.,

man

FINANCIAL CHRONICLE

COMMERCIAL

Co. of California and H. R. Baker
& Co.

...

"r:

(Special

to The

FRESNO,
Hopkins is

Walston,

Hoffman
America

Chronicle)

CALIF.—William H.
now
connected .with

Bank
was

Financial

&• Goodwin,
Building.
He

previously with E. F. Hutton

Co. and

Dean

Witter & Co.

Paul H.

Needed: A National

FINANCIAL CHRONICLE

COMMERCIAL

THE

Number 4710

Volume 167

(2757)

Congressman Buffett Offers Bill lo Create

Hadley With

Boettcher in Denver

Monetary Commission
THOMAS I. PARKINSON*

(Special

The

COLO.

DENVER,

Monetary Commission

Chronicle)

Financial

Member of House

Boettcher

—

advocating

Company, 8282 Seventeenth
Street, members of the New York

and

President, The Equitable Life Assurance Society of U.

national commission composed of members of Congress and others to thoroughly investigate
present monetary problems and suggest new legislation.

Mr. Parkinson

In the

face

appointment of

urges

makes

Because

there

now

the

with

deal

causes

cur¬

inflation

rency

the

war

has

become

evident that the Federal

high
prices, because Agencies—particularly the Federal
Federal Reserve Board—charged with the

the

has

Reserve

clearly admit¬
ted
I. Parkinson

quacy
the

•

inade¬

its

management of our monetary pol¬
icies are totally unable to cope

to meet

f The
vested

gency, important changes must be
made in our monetary setup.

power

money

over

by the Constitution
clusively in Congress. This

was
ex¬
was

Organ¬

Col.

Department, headed
Warren Andrews of

Ala.,

Montgomery,
Congress.

"There is

and

the

doubt that such

Chicago,
Cong.

monetary commission will crystal¬

Buffett

lize

last

dressed

sentiment

favor

the

universal

month in sup¬

gold standard," said
Cong. Buffett. "There is no other

port of his bill

ultimate

to
Paul H. Hadley

can

come.

ous

steps and technical problems

resume

gold

pay¬

The

Stock Exchange, have

ments.

Congressman
has announced

added Paul
Hadley to their staff. Mr. Had¬

ley
of

was

prior
&

formerly Vice-President
Service Corp. and

thereto

Co.

rency

sound

in the next ses¬

nized

„

restoring our cur¬
credit system to a
basis may well engage the
r

and

commission of

18-man

Buffett proposes
commission, of 'whom

not

than half may be mem¬

bers
of
either
major
political
is a mem¬ party. Six would be appointed by
ber of the Banking & Currency the President of the United States,
Committee which handles all such six by the presiding officer of the
legislation.
Senate, and six by the Speaker of
While action on the proposed the House of Representatives. Of
monetary commission is not an¬ each group of six, three would be¬

specialist

finance

Mr.

numer¬

Congressman
an

Buffett, a recog¬
economics and

Congressman

Phipps Join
Shields in Chicago

which

However, the

experts."

sion of Congress.

Bost &

attention of such

Buffett

Howard

reintroduced

conclusion

involved

will

bills

his

with Sullivan

was

both

that

Investment

of centralization of
Eccles, testifying before a government that we have found
CHICAGO, ILL.—W. Dale Bost,
to be wise and prudent; it means former Chairman of the Board of
Congressional Committee, has said
that the powers heretofore exer¬ at this time that if any action is the Orange Crush Company, and
cised
by
the
Federal
Reserve to be forthcoming in putting our William F. Phipps, former Presi¬
Board to control the money mar¬ financial house in order, it must dent of the investment banking
ket are no longer useable or effec¬ emanate from Congress.
firm
of
Thompson,
Davis
&
When
we
went
off gold, we Phipps, have become associated
tive for that purpose. Others have
stated that the Federal Reserve were
promised
a
money- that with the Chicago office of Shields
no longer controls the
money mar¬ would have a stable purchasing & Co., 135 South La Salle Street,
ket—that is, the amount of the power.
Since that time we have nation-wide investment bankers.
money supply and rates of interest had a continuous depreciation of
Mr. Bost was associated with
phase

one

the Treasury

which

with the situation,

emer¬

Business Advisory Committee for

Busi¬

izations

steadily

our

<§>-

ness

alarmist sugges¬

fact

augmenting financial peril cannot
be denied, and ever since the end
and

and

The

tion.

Monetary Commission, modeled

Small

action.

This is not

effective

machinery

National

American

a
plan of reform and suggested
legislation should be presented to
Congress. Then we could expect

some

Con-

ference

worse.

the

•

simply

create

of 1908-12 whose report led to the
creation of the Federal Reserve System, was introduced on June 16
by Congressman Howard Buffett (R.,Nebr.). The bill is advocated

tary situation, Congress has been inactive and silent, and govern¬
ment agencies devoted to money management have failed repeatedly
even to present an effective plan to put our financial house in order.
;
Yet
avoiding3>this
problem study of our financial problems,
it

the famous Aldrich Commission

rising prices and a steadily deteriorating mone¬

Banking and Currency Committee, who has been
of gold standard, models measure on

restoration

Aldrich Commission of 1908-12.
bill

A
:

the House,

ticipated this year unless there is
a
special session, there is wide
support for the idea, which will
undoubtedly
result
in
prompt
consideration when Congress re

the particular branch of
government involved, namely,
the
executive -department,
the
Senate
and
the
House, respec¬

long to
the

June

three would be ap¬
from private life. Thus

tively,

convenes.

and

pointed
14, Winthrop

W. Al¬

the full commission would be di¬

—that

controls

Mr.

•

the

contrary, the market

the

Board.

Eccles

the

other

and

Federal

members

Reserve

Board

dollar, and at the present time
the monetary managers have ab¬
dicated.
Ultimately
something
will
have to be done, and the

the Orange

Congress is de¬
layed, the more difficult it will
be.
Some day the question must
be faced whether we are going to
drift into dangerous inflation due

Bost Toothpaste Company.

have suggested and to some extent

required additional legal
in

order

which

reduce

commercial

members

are

amount

banks

the

System

serve

reserves

the

which

Federal

Re¬

available

have

for

the

longer action by

unsound

currency

are

pre¬

inflationary
lending
or
investing.
However, these addi¬
tional reserves, while they would

pared to absorb some deflation in
order to get on a sound basis. P:
To cope with inflation we are

decrease

the

capacity

using now a financial system de¬
signed for a deflation period. Ob¬
viously it is not working; and ob¬
viously no one—'-with the possible
exception of the commercial banks
—is
benefiting from the omi¬

.further

commercial

banks'

additional

create

supply, will be ineffective
long as the Federal Reserve
System buys at a pegged price
Federal bonds held by the com¬
mercial
banks.
They still hold
money
so

about

bonds,

and

all of this
converted
in

billion

$65

our

government
existing rules,

under
be

can

into

money

turned

further

and

increases

supply.

That is the kernel of the whole

situation.

the

method

nously rising supply of money. We
see
every day that more money
means higher prices, and that in
terms of
a
family's budget the

Crush Company as an

officer and member of the Boarc
of

for

Directors

years.

was

member of the Saddle

Club and Mid-Day

Mr.
ciated

than

Commission repre¬
tackling the

A Monetary

maintaining the low interest rate
demanded by the Treasury.
It is

problem.

the

& Cycle

and

"establishment of

commission

credit

vided

and

study

equally

was formerly asso¬
with Halsey, Stuart & Co.

Phipps

between govern¬
private citizens,
the
two
major

ment officials and

money

between

parties.

monetary and banking legislation :v The Commission would be di¬
and to make suitable recommen¬
rected to investigate all phases of

Congress." Recently
Executive Secretary of the
National
Association
of
Credit
dations to

.currency,

the

Club.

banlj:

Men

out

came

favor

credit,
banking
and
foreign exchange,

reserves,

the relation of money

the

quantity to

commodity prices, and in general
to inquire into those steps neces-

gold standard and "hard money,"
as represented by Cong. Buffett's
ary
"to promote and
maintain
bill (H.- R. 5031). Thou¬ the utmost stability of domestic
Davis, Hunter, Scott &
sands of questionnaires are being and international trade, as free as
circulated
among
bankers
this possible from uncertainty con¬
Open Branch in
week on both of Cong. Buffett's cerning the value of the currency
BUFFALO, N. Y.—Davis, Hun¬
proposals by the Conference of of the United States," which the
ter, Scott & Co., Michigan invest¬ American Small Business Organ¬
ment firm, has opened a branch izations.
The results of this poll preamble of the bill declares to
will be submitted to the Small be the policy of Congress.
office at 676 Ellicott Square.

Inc., and Max McGraw & Co.

Co.
Buffalo

earlier

This announcement is not

prices seem to rise more quickly
than the money gets into the bank.
sents the first step in

cated

of the
He ds

founder

drich, Chairman of the Chase Na¬
tional Bank of New York, advo¬

offer to sell or

solicitation of an offer to buy these

securities,

The

Hill!!

offering is made only by the Prospectus,

$28,000,000

up,

reason

lack

for the Reserve Board's

control

over

the

money

change in it has
now
become
almost
impossible
without a thorough examination
of all the problems involved.
Only Congress can undertake
market, and

any

•

this task.
To

into

take

consideration

fundamental reorganization of our
financial
management
Congress
should

immediately create a Na¬
tional Monetary Commission.
This Commission, in order to be
truly representative of the people,
should be composed of three memof

"bers

the

tives,

and

enced

three mem¬
of Representa¬

Senate,

bers of the House

three

persons

monetary

experi¬

matters,

ap¬

pointed by the President.
Upon completion of a thorough

Our

Cost of Living Index
Wholesale Price Index

Nothing

and

stemmed the tide.

this

line; the Federal Reserve
Board's policy proved satisfactory
in bridging a deflation era, but
was not designed to meet the kind

has full power over

ters, and only Congress can create
the

Southern Natural Gas
First Mortgage

Dated

the

brakes

inflation

but

it soon,
These

Unless we get
it will be too late.
figures cannot be laughed

Due June 1,1968

be obtained in

any

State in which this announcement is

of the undersigned and other dealers as may lawfully offer these,

circulated from only such

securities in such State.

off:

1946

1948

$150 billion
$278 billion
129

HALSEY, STUART & CO. INC.
SALOMON

BROS. & HUTZLER
-

••

OTIS & CO.

PHELPS, FENN & CO.

(INCORPORATED)

165

107

by higher

$170 billion
$256 billion
168

wages

and yet higher

BURR & COMPANY, INC.

GRAHAM, PARSONS & CO.

prices.
We

need

R. S. DICKSON &

Monetary Commis¬

HIRSCH

COMPANY

INCORPORATED

sion, and need it now!

and agencies neces¬
*A release by Mr. Parkinson,
bring financial security
the
pitiful merry-go- distributed by Continental Press
round of higher prices followed Syndicate, Brightwaters, N. Y.
end

100%% and accrued interest
-Price

The Prospectus may

WM. E. POLLOCK & CO.,

and

June 1, 1948

v ?

also

for the long range.

powers

sary

Pipe Line Sinking Fund Bonds,

3% Series Due 1968

face, and that

now

Company

policy has not been changed. We
want a system of monetary man¬
agement good not only to apply

one
has
Only Congress
monetary mat¬

;

•

of danger we

$76 billion
$58 billion
112

system

the ground

and the basis laid for a more
stable, more adequate method of
monetary management. This im¬
mediate problem certainly is in¬
flation, but in instituting the ma¬
chinery to fight inflation, we can
also build up powers to cope with
deflation.
One shortsighted mis¬
take has been made already in

1942

Money Supply i
U. S. Treasury Debt

financial

must be analyzed from

June 23. 1948

INC.

& CO.

CHRONICLE

FINANCIAL

COMMERCIAL' &

THE

(2758)

18.

Sees Wdl-SHsfained Business During Rest of ^48 H. J. Williams Wins
.

BOSTON, June 21.—In a special report

General

annual
curities

activity

with

in steel

will be small due to
limited ;■* additionalJ papacity,
shortages of steel and other
metals, and (3) curtailments ' in
some
soft goods and appliances
which will tend to offset gains in
further gains

Prices

...

commodities

tured

manufac¬

and

products.

consumer

half,

will

Living

March

despite prospective weakening in age
'

foods.

•

low.

21(5.

Automobiles

avoided.

huge,

With

little

order

backlogs
will be ex¬

trouble

the

rise

from

the

Earnings

will

new

construction

this

In the

Net

was

television

set

was

effects of the

director

;

The

Home

has

been

appointed to the additional
post-of-assistant secretary.
.

Joseph D. Means With

Co., Vyfc^SpiJcialsto

Street, New York
past he, was

-Tax Financial Chronicle)

CHICAGO.

with

ILL. —Joseph

Means bas become associated with
Merrill Lynch,

Pierce, Fenner &

Beane, Board of Trade
1

Building.
^

»':V.i -i.

purchased
managers
fund.

(Philadelphia Plan)

mature$60,000
*

To be
rr*n

•

*,vl

-i

This had

in-jurisdictions
the

to be known

Man

Rule.

;
s"j

v i.

''U

to payment

of par value and dividends by endorsement

by Richmond, Fredericksburg and Potomac Railroad Company.

Certificates

be issued under an Agreement dated as of September 1,1948, which will
provide for the issuance,of $2,400,000 par value of Certificates to.be secured by new standard-

gauge

are .to

railroad equipment estimated to-cost

Priced

not

fe^ fhah $3,017,000;

yield 1.2Q% to-2.375%, according to maturity1

R. W.

PRESSPRICH &. CO.

1948.

ae to

completeness

CO. Inc.

^ &

FREEMAN & COMPANY

or accuracy, we

that

believe it to be correct

the

aggregate - endowments'
hospitals, fraternal"
groups and other similar organ!-;
of

churches,

zations would reach

a staggering
top of all this, one must
think in terms of the gigantic ag¬
gregations of securities possessed
by insurance .companies and fi¬
-

nancial

mous

cate I the

work

presence,

which

indi¬

that

some

these

all

•

sorts/

aggregations of funds have,

which usually mark. the ap¬
proach of -'maturity in a society;
Can it" be that our legal frame-'
work as well as our type of
man-;
agement thinking has served to*
sterilize a large part of the sav-ings of our vigorous past gener-r
ations?
/
'
*
ences.

threaten/- to

placed on the shelf, so to;
speak; in a static condition be-'
cause of these conservative influ-^

and perhaps
the necessity, of certain repressing
forces, i Possibly you will agree
-

institutions

been

have been a number of powerful

influences: at

in¬

take I away

Tendency Toward Sterilization

a formidable force indeed.
I think that it is possible to be
With, each of these .developments
:very much worried about the ten-//

and, while not guaranteed

June 24.

$500,000,000; it

racy

lr v-

rtfin

leading universities of'
more than may be imagined

country aggregate

The question to ask ourselves is
the extent to which.these enor¬

us something of the dynamic
vigor which, accompanied by tre¬
mendous mobility, has made our
Republic-and our social democ¬

may

e^a Jiuarterly.c^iv^?n^s (March 1, June 1. September 1 and December,1)
/rUe Certificates, with dividend warrants attached, in the denomination*of
L; j?1 1 p
t0, pa.r value. Not redeemable prior to maturity. These Certificates are offered when, as and if
v-rert,hcates in temporary or definitive form will be delivered at the office of Halsey, Stuart & Co. Inc.,
traA rJ;o• ior '^information contained herein has been carefully compiled from sources consid¬
ered reliable
m

•-

dozen

the

it may

HALSEY, STUART

from

lawfully offer these securities in such State,

the

sum.

fluences

Issuance and sale of these Certificates are
subject ta authorization by iheTideVstMt^06mfh&ce^Ckmmssioh,
The Offering Circular may be obtained in
any State in which this announcement is
,
circulatedfrom only such of the
undersigned and other dealers

America

are

constantly/ growing reservoir of
accumulated savings, ever nour¬
ishing enterprises and the expand¬
ing «development ■./;©£* old: .enter¬
prises.

with

insured banks;
total business.4

nor

Intermittently this process has
continued.
I say intermittently
because in the period since 1850,
and particularly since 1915, there

'
&'

lead

family trust ar¬
rangement flowered tremendous¬
ly; the private banking system of
this
Republic
blossomed
along
had

business;

are"
with

States, notably members:
investment and legal fra-v
ternity. They do not include,/
either,
the
very
considerable
amount of money which is held by
charitable corporations through¬
out the country. The endowments'

The

banks

of /the

which

the Prudent

the

United

Massachu¬

Massachusetts

insured

These statistics are
sufficiently~
impressive but it is to be borne
in mind that they -do not include
any of the very large volume' of
fiduciary business which is done
by individuals throughout the

been made

with

Pecember 1, 1948 aftc[ quarterly thereafter from March.f, 1949
to September. 1, 1958/ inclusive

unconditionally guaranteed at

These

banksj^

of the business;'27%

6.4%

•

Equipment Trust Certificates

recent

state member banks with

are

neither member

as eager¬

setts

it.

-national

are

non-member

and
retained by
of many .a family

possible

with

just

were

especially
and

nearly 3,000
country."

institutions

52.9%

by a pentrating decision of the
Supreme Judicial Court of Massa¬
chusetts,
decided in March of
1830, which announced what has

Equipment Trust, Series 1948

em¬

companies
and
banks,
eagerly purchased not only

trust

pretty virile.

are

institutions

opportunities

vigorously

was

breathing, but
the

was

there

administering more than
$36,000,000,000 of property and1
personal
trust
accounts,
the
equivalent of $1.00 for every $4.00
of the roughly $157,000,000,000 of
bank deposits as of Jan. 1, 1947.
Forty-eight percent "of these trust"

20%

followed

tiiV

Richmond, Fredericksburg and Potomac Railroad

■

These
dates

ployed. Shares of clipper ship
ventures, mill shares, real estate

were

Tittle of what"

institutions1 in the

trust

by merchant princes and by bour¬
geois proprietors, - alive and

Merrill Lynch in Chicago

was

they hold 31.7% of the business;

come

•Today

surance

$2,400,000

what there

Capital

There

and

Boston

be called corporate fiduciary
practice in those days, but again,"

that caste distinc¬
persistently; year
the waves of immigra¬
and

may

crumbled

places

maturity.

21 millionaires in

were

chances. There

economy

always to come

were fewer
Philadelphia but
variety made up in
daring what they lacked in num¬
bers. They took some pretty wild

parts of the world. So mobile was

here.

seems

Boston

the

land

tions

of these repres¬

approaching

New York City.

ary struggle were dramatic parts
of the developing scene. American

our

some

of thera is nothing more
comparative conserva-/

1840 there

tion from the old countries found

public

Dunshee,

are

one
the

than

and of the American Revolution¬

their

Kenneth

Well,

Revolution

French

forefathers.

sive influences of which I speak?

at least, and in Britain,
remarkable ■ things
took
place between 1775 and 1850. The

after year

New Post for Dunshee

B. J. Van Jngen & Co. and was a

2XA%

What

was,

many

■

Progress

Philadelphia.

R.C.A.

relations

40 Wall

Inc.,

year

gross

Co., i: Rhodes-Haverty
Building, have added Henry P.
Heid, Jr., to their staff.

15-20% gain partner in Bouton & Church.

Class C

was won

Humphrey

The Industrial Aver¬

associated with Eldredge &

expenditures City.

likely to show

19th.

course,

trade, commerce and social ac¬
tivity burgeoned.
In New Eng¬
particularly a race of hardy
awarded to Harry L. Heffelfinger pioneers
undertook
experiment
after : experiment, v;- in ; philosophy
of Samuel K. Phillips & Co.
and religion, in education and in
commerce.
The Anglo-American
Robinson-Humphrey Adds civilization, flexible in every part,
(Special to The Financial Chronicle;
drove energetically to every cor¬
ATLANTA,
GA. — Robinson- ner of this continent and to

Eldredge & Co., Inc.

Total

are

vita¬

our

.Repression of Conservatism

development shares, shares of in¬

'/ Building
for

the vigor of our

■

of the

half

taking

about

with

is
we-

must strive in every way
within us to recapture

lies

tism which

Edward L. Boston With

car

—

with

race

that

many

•;*

*;*

Insurance Co., Nfew York,

higher,

•

Harold J. Williams
,<

Robert. MacNeil

Trust Co.

tributions.

form of still

prices.

must .be

mins;

new

gathering speed in the second half
and the first

Kicker's Handicap was won by
John H. Webster, III, :of Provident

Edward L/Bouton has become

perienced in passing along higher
wage costs to the public iri the

began

that these

public

—

tie-up which would curb steel
supplies... Full-year output should
at least equal the 5 million cars
and trucks in 1947, and may reach
5V4 million if labor troubles are

Ideas

Buckley

of output is
coal

New

Yet is is plain that

was won

Some expansion least well-maintained, and divi¬
forecast in the second dends will exceed total 1947 dis¬
half—barring
another
crippling

of the 18th century

by R. W. Drummond of Paine,
Webber/" Jackson & Curtis with
105-35—70. '
••

"(Dow-Jones) <4 will; probably

reach

•;

seems

ideas

won

maintain unit

our¬

do not have much time to lose. We

Ed¬

;

even

dynamic.

Brothers with 46-47—93.

slower pace than

featured

has

costs will work somewhat higher

into

uneven—in some re¬
spects we are still somewhat me¬
dieval in approach. 1 In this Re¬

have deluded
believing that

by the Walter Fischer of Buckley

costs

but at

selves

Introduction

Stein

and static;

essentially rigid
though

located.

with 41-41—82. Low net

still heading up¬
in prospect (although some items ward, even a small loss of turn¬
are
over, will have a sharp impact on
already, at or near support
•
levels). On the other hand, higher profits.
Stock Market—An upward trend
wage costs will force further price
markups in a number of indus¬ is predicted during the second
trial

shaken on their
For Darwin

were

in:

point* out

protection of fixed
battlements had been badly dis¬

win¬

was

son

turnover. .With competition grow¬

ing and

will not be in vain, for as

Brothers,

sales

Sales—Dollar

will be necessary to

months. V Lower. farm' prices. are

cial banking.

Chris¬

of the power of

Bros. & Boyee

However, strong promotional i ef¬
forts and some price markdowns

likely to show rather
in the next six

are

field but in the field of commer¬

(Christopher Columbus had
explored.
The persistent notion

win L. Fergu¬

high in the second half.
Full-year volume is expected to
be
6-8%
larger than in ,.1047.

variations

wide

the gross

continue

„

Class

ner

prices.

Retail

< 1)
<2)

old-fashioned, almost buc¬
caneering, sense of experimenta¬
tion; not only in the fiduciary

and

with 80-6-74.
In

some

of this

honors

net

recapture

world opponents has been, and is,*

Didactic

and

tianity all

Larry War¬
900,000 new dwelling units
ren
of
Reyare expected to be built this year
Co.
against 835,000 in 1947. Building I nolds &
took the low
costs are near their peak, but no

appreciable decline is looked for

'V'/-b

.,v

had spoken, Voltaire had written

;

'/:V

■

need

foundations together.

score

of; 3*3-41—77.

■
-j '.
*."•.
feel re¬ this year.
Steel will remain in short sup¬
viving competition, and the bene¬
fits from aggressive management ply throughout 1948 despite pros¬
and efficient plants will become pective output of about 3 million
more
pronounced in the months more' ingot tons than in: 1947.
ahead.
Some voluntary ; wage concessions
Production may ; edge slightly are expected b.y fall, which will
above the first-quarter peak, but bring further selective increases

shall

Possibly the effort
I hope
a
moment the
philosophic economy of our chief '

Puritanism

Club

Country

However, more lines will

Co.
the

Llanerch

least

housing, and large order back¬
logs for capital goods will offset
deflationary tendencies. Recently
improved business confidence will
also
have
a
bolstering
effect.
and

others.

alism, the Divine Right of Kings,

ciation

general will hold around cur-^
rent high levels over the remain¬ over the $13 billion in 1947. Resi¬
der of 1948.
The supporting in¬ dential outlays should be up 25fluences of the tax cut, rearma¬ 30%. While gains in physical vol¬
ume
will be less spectacular, at :
ment, continued shortages of autos
in

It became

Se¬

&
at

golf outing of the Phila¬

delphia

Business—Barring another extended coal strike,

Family Tiust

.(Continued from. page 8)

Asso¬

Boenning
the ^President's Cup

won

'.'V

of 1948.
;

issued today, the United

following forecasts for the, second half

Business Service makes the

PA.—Harold

Williams /of

clear, abundantly clear,
that safety lay only in mobility,
ingenuity,v compromise,
adjust¬
ment and adaptation.
The rigor¬
ous and fixed
concepts of Feud¬

PHILADELPHIA,

.Reviving Competition

'.'.'J.'i

Role of the

Phila. Securities Golf

Feel

Service Points Out That More Lines Will

Thursday, June 24, 1948

of this date.

be that we have lost some¬
thing of our punching power in

dency of modern times in this re-spect.,
It may even be that our/

the

progress" toward

fiduciary field and
banking field as well. It

the

may be,
following, as
we usually do, in the footsteps of
our parent'
nation, Britain, at the
respectful distance of something

indeed,'that

are

sterilization, of a,

considerable amount of

our accu--

mulated"

capital is increasing geo- /
metrically. We all have observed
the

tremendous emphasis during
past decade upon the placing*
like a generation or two. ? It may
of savings in government bonds.7
also be that if we are going not; What we may not have observedonly to defend our economy in so keenly is the dangerous and
this troubled * world but also to alarming decline in capital forma-/
advance

our

standard and keep it

position of clear leadership

the

tion which began in 1930 and

haSi

continued

the

ever

since.

March 1947 issue of the
can

"Ameri¬

Economic Review," C. Reinold

Noyes, President of the
Bureau

Economic

National
Research,

pointed out that from 1879 to 1929
inclusive our capital increased an
additional 26 billion to 70 billion

It now seems
1929 the growth

dollars each decade.

since

that

clear

our

capital has ceased and

that

have been con¬
In the 15 years
1945, Mr. Noyes

since that year we

capital.

suming

1931

from

there was a "decline
capital of 9^ billion

COMMERCIAL

THE

Number 4710

Volume 167

Maine

and

observe

recently, South

now,

It is also interesting to

Carolina.

that

the portfolios of

the 12 universities to which

I have

that
something approaching 37^% on
the average of the total endow¬
it

referred

ment

shares of

stocks.. There is likewise,
observe it, a ferment at

now

work

appears

consists of

funds

common
as

now

both

the

and

Insurance

Savings Bank worlds.
Should Liberate Capital Funds

FINANCIAL

pened to the shackled societies of
Germany and Japan.
The ques¬
tion before us, as proprietors of

Advises
In

this great Western
Republic, is
whether we are willing to assume

those shackles ourselves and thus

delimit

oqr

own

and
growth

normal

natural rate of intellectual

and progress.

Possibly there is

lesson to be
learned out of all this, even by
our commercial bankers.
Possibly
they also have fallen, thanks to
government regulations (and overregulation) and fear of public
opinion, into a frame of mind
which bespeaks conservation
rather than growth. I cannot fairly
say that I am expert in commer¬
cial banking transactions. But this
a

(2759)

CHRONICLE

Doing Business Under EGA

publication issued by American National Bank & Trust Company
Chicago, A. M. Strong, its Vice-President, summarizes procedures
selling, distributing, and reimbursement under recently enacted
Foreign Assistance Act.

"Doing Business Under the Foreign Assistance Act" is the sub¬
ject of a folder just issued by the,American National Bank & Trust
Company of Chicago.
In the publication, A. M. Strong, Vice-President in charge of the
bank's foreign
Certain purchases will be made
department,
sum m arizes
by foreign government purchasing

opinion that persons in
position
should
interest
missions.
the procedures
in the liberation of
"In making arrangements under
involved
in
Slichter
of
Harvard
capital funds from the shackles of
the ECA program," he concludes,
selling
and
has stated that:
the legal list and that you should
"it is advisable
to
instruct the
distributing
w.
American Industry has do what you can, in New York
foreign buyer to stipulate that the
goods under
about one-fifth less capital per and Pennsylvania, to assist those
letter of credit be issued through
the program
worker today than in 1929.
An great sovereignties to set free the I do know—that for the period of and outlines
a local bank.
This will prove to
expenditure of about $50 billion accumulated savings of their cit¬ now considerably more than 25 methods
be of considerable assistance in
by
would be required to raise capi¬ izens from this type of shackle.
years during which I have been
handling the intricate documents
which
Amer¬
It is my opinion, also, that each
tal per worker to the level of 1929
at the Bar it has been cheerfully
required under ECA regulations."
ican suppliers
and a considerably larger outlay of you should deputize himself a admitted by everyone, even in¬
will be reim¬
personal and individual influence cluding bankers, that one of the
to raise capital per worker to the
bursed.
remove
from the legislative defects of our financial
level which would be normal in to
system is
"In order to
view of the long-term tendency policies of the United States any that sources of enterprise capital
obtain dollars,
©f capital per worker to increase and every influence which de¬ have been hard to find. So far as
A. M. Strong
the
European
at the rate of about 2% per year." prives the Republic of its mobile I can see, very little has been
importer must
As the St. Louis Union Trust fighting power on the business done, if anything, during that
Equitable Securities Corporation
pe¬
apply to a special agency in his
Company pointed out in its March and commercial front.
announces that Frank E. Carter,
riod to provide, life blood to new
country for approval of his pur¬
It is my further opinion that
1348 monthly letter, we are pro¬
and
small
American
enterprise.
chases, Mr. Strong says.
"When
when corporate fiduciaries in the
ducing more than we used to pro¬
The bankers of this Republic have
the request is for a product in¬
duce, not because of an increase in United States receive accumulated failed, so it seems to me, to find
cluded in the schedule approved
capital but. "because of an en¬ savings to hold,, manage, invest an answer to that problem. They
by the Economic Cooperation Ad¬
largement in the working force and reinvest in trust they should need to find that answer. A stuffministration, he will obtain per¬
and the use of our existing capi¬ take a much more alert and im¬
shirted tolerance will no longer
mission to import and to pay for
tal equipment to the limit of its aginative attitude toward the em¬
suffice. We need, in short, to take
his goods with dollars set aside
capacity.
We are following ployment of those savings and ourselves out of our decorous tux¬
for ECA purchases."
;
V
England's footsteps,
and living should use them effectively and edos and place ourselves in the
Procurement authorizations, Mr,
affirmatively and not merely rely
upon our accumulated capital. We
imaginative working garments of
Strong points out, provide three
are
robbing the future to spend upon the broad powers which are our ancestors.
■■■■&:'
'.V
methods of payment for materials
increasingly
granted to them
more in the present. This is why
People talk about this age as
supplied under the program.
our
production cannot now be under the terms of their trust in¬
being the age of the young man.
The first method involyes reim¬
.;1
readily expanded sufficiently to struments,-;
We need to stop fooling ourselves
bursement by the Administrator
Y; I have a strong feeling that if
bring the volume of goods avail¬
with that sort of statement. • The
to
a
participating country for
able to the consumer in line with we are willing to tackle this prob¬
really young men of this Republic
payments made by it.
bis swollen purchasing power. It lem vigorously we shall not find
founded our nation, and founded
Frank E. Carter, Jr.
competition on the world¬
The second method involyes the
is one of the principal reasons for our
our trade, and saw to it that our
issuance of Letters of Commitment
the great inflation in purchasing wide scale to be even difficult, let
strength increased in comparison
alone insuperable. ? The fact is, as
to
banking institutions
in the Jr., formerly a partner in Carter
power which curses our economy
with the strength of nations gen¬
&
Chadwick,
municipal
bond
all know, that our chief present
U. S. under which the banks will
today."
erations old.
The young men of
rival for world domination is the
has become associated
issue commercial letters of credit brokers,
I have said that part of these in¬
New England drove the Clipper
with the firm as manager of the
Soviet Union. An equally impor¬
to the American suppliers.
Under
creasingly conservative influences
Ships to China.
The young men
tant fact, however, is that the So¬
fhe third method, the Letter of municipal bond department of its
abide in the framework of our
of the Thirteen -Colonies
wroteNew York office, 2 Wall Street.
viet Union is operating under a
Commitment w^ill be issued to the
.r
political attitudes and hence of our
the Constitution.
The young men
self-imposed strait jacket of its
American shipper and the Admin¬
law.
That statement seems to me
of the nation explored the con¬
very own.
Totalitarian adminis¬
istrator
will agree to pay the
Now Partnership
entirely
justified.
One of the
tinent and laid down the high¬
tration, confronted with a rather
shipper or his assignee for the
things, for example, which has di¬
DES MOINES, IOWA—BallardWe have been acting, re¬
spasmodic adherence to the prin¬ ways.
goods delivered to participating
rectly impeded the growth of our
ciples of Communism, portrays an cently, not like young men but countries.
.vYYyYY/ ->M ■ ^^YYY(<.: V'Y Hassett Co., Central National
capital has been the political at¬
innate weakness which may well like timorous old men. In this re¬
titude reflected in Washington for
In summing up regulations is¬ Bank Building, is now doing busi¬
lead to the downfall of the entire spect we can learn from our own
a
considerable number of years
sued
to
date by the Economic ness as a partnership, with Wil¬
yYYvYY
system. That weakness is exactly past. 4.v;Y.vyYY' Y:.,v
toward the private business inter¬
Administrator, Mr. liam L. Hassett, Fred G. Neu and
I do not, believe me, speak in Cooperation
the same weakness which led to
ests of the nation.
Expressions of
Strong says: :v;' >Y'Y'^SYY
the downfall of feudalism. ;The critical despair. I speak rather in
Harold C. Neu as partners.
that attitude have been found not
"To do business under the Mar¬
For it is
system is cramped and frozen. confident high hope.
©nly in labor relations statutes but
of
any
American shall Plan, exporters should con¬
There abides in every form of to¬ characteristic
also in tax policies.
I have not
Merrill, Turben Co. Adds
talitarianism an intellectual, ad¬ professional or business man that tinue to use their present dis¬
time to discuss these manifesta¬
(Special to The Financial Chronicle)
ministrative and strategic rigidity once he sees the problem the solu¬ tributors and agencies; however,
tions in detail, nor do I think I
I suggest for certain commodities such as
CLEVELAND, OHIO—Jack H.
which expresses itself in a blunt tion is close at hand.
need to, but it goes without say¬
refusal
to
recognize facts and that commercial bankers and trust grains and some other foodstuffs Doyle has been added to the staff
ing that if it is the national will
which makes administrative ma¬ men tackle this problem hand in or drugs purchased for relief pur¬
of Merrill, Turben & Co., Union
that heavy imposts be placed upon
chinery and basic political strategy hand and solve it together as com¬ poses, it will be necessary to deal
business enterprise and if the tax
with U. S. Government agencies. Commerce Building.
practically impossible of change. panions at arms!
statutes are so framed that only a
On top of all this, totalitarianism
relatively few can possess accu¬
mulated purchasing power, and always takes elaborate steps to
make certain that virtually the
that those few persons have little
entire intellectual nourishment of
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these
©r
no
incentive to invest their
The offer is made only by the Prospectus.
its people will be administered on
savings in business, our national
rigidly approved lines.
DeWitt
free capital can scarcely be ex¬
John, staff writer of the Christian
Not a New Issue
pected to increase. Likewise there
Science Monitor, in an interesting
are, in important jurisdictions of
article published on April 15, 1948,
the country like New York and
pointed out that the result of this
Pennsylvania, lingering relics of
rigidity is not only that leading
legislative impediment upon the
Russian
musical
composers
are
free use
of fiduciary funds in
American industry.
Those relics compelled to confess weakness in
their
individual
styles
and to
points out,
of

non-war

dollars."

Professor

It is my

your

H.
University

Sumner

yourselves

Frank Carter Heads

Dep't for Equitable

...

Shares.

51,500 Shares

stemmed from England at a

when it was English
sist

that

time

policy to in¬

accumulated savings be

available primarily for the
purchase of government obliga¬
tions. As you all know, the Pru¬
dent Man Rule of Massachusetts,
which tends to liberate fiduciary
funds for participation in national
free enterprise, has not been the
law of New York
State or of
Pennsylvania and, unfortunately
for the Republic, it has not been
the law, until comparatively re¬
cently, of certain great commer¬
kept

change their individual styles at
the dictate of the central bureau,
but that

whenever, as in the case
Varga, a competent
economist indulges in an analysis
which seems over-favorable to the
of

so-called

economy

nois, Texas,

(Par Value $1 per

•

■

share)

prise he loses his official head.
History demonstrates that no
system can endure if it flatly re¬
fuses

discovered

merely
conflict

facts

truth
or

newly

Price

talents

new

because these
official

$38%

per

discoveries
preconcep¬

with

;

centers- like

fornia, Michigan,

Company

Common Stock
':,7

of free enter¬

Y;YY
Illinois, Texas tions..
As Dewitt John, says, "The very
and California.
There have, how¬
genius of western civilization—
ever, been recent developments of
one
secret of its grandeur and
importance in this field and I am
achievements — has
pleased to say that within the past burgeoning
been the free-ranging urge to ex¬
rough period of five years there
plore the unknown in all realms
have been added to the roll of Pru¬
'
dent Man jurisdictions the im¬ of knowledge."
We know from our history that
portant states of Delaware, Cali¬
cial

Joy Manufacturing

Eugepe

Minnesota, Illi¬

Washington, Oregon,

medieval feudalism could not en¬
dure.

have

seen

what hap¬

Copies of the Prospectus are

Hallgarten & Co.
June 22, 1948.

obtainable from the undersigned.

R. W. Pressprich & Co.

THE

COMMERCIAL

FINANCIAL: CHRONICLE

Thursday, Jurfe"24,~1948
■rim

been felt and renewed

confidence

has entered the market.

not

How long
maintain
]

will

levels

present
would

hazard

guess,
but
development in
Canada, I would not expect money rates to stay; static at
present levels and • -one • should
with

tremendous

store for

from

bear in mind the fact

now on

that the Bank of Canada has made
its role clear that it is not

a price
fixing factor, but rather a stabil¬
izing influence which I think you

will

grant is as it should be.

■

We of the Investment Dealer in¬

dustry
James

with

Gairdner

are

the

so;

closely

economic

affiliated

life

our

country that any development, ar¬
tificial- or otherwise, that affects
it, affects us for good or bad and
it behooves

us to give voice to
opinions from time to time,
particularly / on
those
matters

our

which most directly affect finance
and the market and movement of

securities,

Harrison

Company Limited

■

.■

■.

-Investment Dealers

is going through
the third great Capital Expansion
phase of: this century. Three per
riods stand out in which construe-,

tion awards, increased
sive years from a low

•

appointment of

Canada today

peak..

the

announce

•.

A -New Capital Expansion

;■

The decade

World War

in- success
point to a
yy/ •/ ,.. ;y°

preceding the First
of great

was one

con¬

struction

activity. In the second
'period from 1922 to 1929 construc¬

MITCHELL

tion contract awards climbed from
as

Manager of their Wholesale Department

$331 million to $576 million.
third and current

The

period of capital

expansion

has produced : an. in¬
$511 million, from $206
1943 to $717 million
in 1947, (To a certain extent the
figures for the third period are
crease

66 King Street West

Toronto,, Ontario

million

inflated

by the rise in construc¬
costs, but the accelerated
pace of our. advance
in capital
growth is heyerthel^ss' impressive
tion

Mills, Spence & Co. Limited
GOVERNMENT;
and

MUNICIPAL

gnd th^ epd "may not be yet;)
It
is quite conceivable that un^Or re¬
lief from irritating governmental

restrictions/this period of capital
expansion could reach figures far
irT excess* of any previous record.

CORPORATION- BONDS

Of
25

KINO

TO
V

ST;

WEST-

ELGIN 1341

O
"

now

familiar

total

MONTREAL
PLATEAU

the

WINNIPEG

8751

9-3385

CANADIAN BONDS
GOVERNMENT

PROVINCIAL

McLeod,Young,Weir & Company

MUNICIPAL

LIMITED

CORPORATION

Members of The Investment Dealers Association of Canada

DEALERS

IN ALL

CANADIAN

Private wire connections

CANADIAN STOCKS

SECURITIES

New York and Montreal

Metropolitan Building, Toronto, Canada

Montreal

Branch Offices In
Quebec

Ottawa

Hamilton

• •

London

Correspondents in London, England

a. e.ames & co.
INCORPORATED

Head Office

$2.3; billion-which the Department
(Continued on page 26)

y TWO WALL STREET
NEW YORK 5,

N. Y.

New York

WORTH 4-2400

NY-I-I045

Volume

THE

Number 4710

167

COMMERCIAL

FINANCIAL-CHRONICLE

Canadian Investment Bankets

Capital for Small:; Business
By TREVOR F. MOORE*

Stress Personnel Training
Convention

the

Vice-President & Director, McLeod, Young, Weir & Co., Ltd., Toronto

Pointing out basic financial problem of small companies is obtaining permanent capital, Mr. Moore
calls attention to movements in Britain, U. S. and Canada to supply credit of this kind. Says source of

Association of,

Investment Dealers'

Canada, held in the Manior Richelieu, Murray Bay, Que., Canada/
June 12-16, the importance of education and training of investment
t

venture

pointed out by Peter Kilburn; of Greenshields & Co.,
of Montreal, and H. L. Gassard,<8>
*——--—
the Director of Education of the
complete," Mr. Gassard 5 stated,
Association.
In a paper read to "through at least one revision and
the
Association,
Mr,
Kilburn that we will then be in a position
personnel

was

recommends

forward losses for five- years..
The

H. rL. Gassard

Kilburn '

Peter

;

our

following- forms:

debentures, unsecured loans,, resources in the case of businesses
redeemable - preferenceshares/ already established on a commer¬
participating
preference, shares cial basis, having a satisfactory *

contacts

fashion,

scale

Ca-,

every

nadian to
tablish

es-?

-hi

te nance

better understanding of
enterprise capitalism op¬

and ordinary shares.

will

always endeavors to provide
finance in the form that is most
suitable to the needs of the appli¬
cant." 7/ 7
7;.,;;,' :;7
' / 1 ■ ...

permit

such
to

The

business

Trevor F. Moore
is es-?
sent jar, to the 4
4 V1
7;y77/., .7
preservation of our free society.
According
to
latest . statistics
provided by the Dominion Bureau,

prosper

there | are
employers

some , 29,050 business
in 7 Canada.
Included
in this number are 27,080 estab¬

than 100
workers. This last group of rela¬
tively small" businesses accounts
in the aggregate, for 30% of the
lishments employing less

and

sustained

friendly-and

the

pied by young Canadians in public
/ schools, high schools and colleges

I- have received
from
members of this'Association, con¬
vinces me that there*is a wide¬

in our nine provinces, who com1 tinuously replenish the body poli7 tic as they become old enough to

spread and a growing understand¬
ing of this need for interpretation

If the

vote.

case

| prise is at least
j to them

the

for free enter-

well presented

case

Communism

for Socialism

something else,
they will under¬
stand and support and strengthen
f our business system. If not, they
or

chances

the

are

in a few years be working
against us. I used to consider these
things academic and remote be-

■i

may

{cause they

are hard to come to
grips with, but it becomes more
I and more apparent that they are

J real and close at hand.

For the

support

among
'

Investment Dealers.-

feel

that

our

work is

sig*

the movement of
interpret itself to the

nificant phase of
business to

public.

This

which

should

Lester

Hon.

./v7 7' ■■",7

problem of

7 The basic financial

companies is that of perma¬
capital rather than that of
short-term credit,Mn Great Brit¬

small
nent

ain

capital

month, said:

Commercial

Corp.,

Finance

to embrace Communism to-

morrow. Through their votes and
; influence they would control the
i country in short order.

'Every univerf

"Our bridge can Mead-us to

the

students in schools

teachers and

and

with others whose interests march

in company

colleges where,

growing necessity of our

times*'

I believe that the program

of edu¬

by means of loans or the

nance

tal

or,

this

Investment Dealers'

will assist to achieve

straight

young

thinking

Reconstruction

Fi¬

Corporation* government
sponsored, government approved,
providing capital-for small busi¬
It should be added, how¬

nesses.

that the protective features

ever,

restrictions

"of such advances, the
and controls of

salaries and wages,

accounts receivable, etc.,

might be

considered rather onerous by most

business owners.

small

There

are,

in the
countries,

of * course,

United States as in most

private groups, foundations .and
management companies which will
buy into' established)promising
young firms and
new

also investment trusts

occasibnally will
entirely

financially an
business venture. ;

sponsor

This, board has power to borrow
up to an additional £100,000,000.

(Continued on page 26)

of loan or share

NESBin, THOMSON & COMPANY
Limited

■'■-'•^;-7';77

■

77
' '

77;)
7

" -

7771

■

•-

7, 7:

»•

-- -

•

. •

capi¬

DISTRIBUTORS

UNDERWRITERS and

Government, Municipal,;
■f- 77 Public

our

its

not

minimum 7 £ $5,000

; are

•/;

and

£200,000,
normally
deals with established businesses,
sider

*An

*V '•

phone

;

(montreal) harbour 9221*
:-v,y-- :

•

».

•

•.

•

;

terprises

32nd

is 7 prepared)to
con¬
proposals • from new en¬

provided
{.v' -j

address

Annual

355 St. James Street/ W.

Montreal

•

by Mr. Moore at
Convention; of the

Investment Dealers'

reasonable

'J y-r: V

Association of

Canada, Manoir Richelieu,

Province, Canada) June

people."

Utility & Industrial Issues

readily or easily available.
The corporation, whose usual lim¬
are

•.

Association

the

find

nance

one-third by trust companies and
orte-third by the Bank of England.

are

the United States,

Turning to
we

type is The Finance Corporation
for industry Ltd. with a capital
of £ 25,000,000 subscribed roughly
one-third by insurance companies,

otherwise for. industrial and
businesses or enter¬

vanced by the

ment.

provide further capital by way
7 7 ' 7 7 77,7) yy-y '
Another company of a similar

There

of
business
continuing manage^

record

and

commercial

ad¬

being: actively

now

trading

Pearson,

sity student today, should be as¬
sisted and encouraged to
think

cation

own

gov¬

operating, on a commercial basis.
"The main object of the corpora¬
tion is to-provide credit and fi¬

butf

were

three-year

of loans.

approved, .but controlled
by its own Board of Directors and

Straight thinking on these is the

capital out of its

ernment

colleges

schools and

Industrial: &

maximum

Canadian

Ltd., which is prepared

partial solution to this prob¬

straight on the social, political and
economic
issues '■ of
the, day.

Co.

to subscribe

Finance Corp. Ltd.,
amounting to. £15,000,000, is pro¬
vided), entirely by the English
clearing banks, the Scottish: banks
and the Bank of England, land the
shareholding banks have agreed

prises in Great Britain, particu¬
Under Secretary of State for Ex-, larly in cases where the existing
ternal
Affairs, speaking at thei facilities provided by banking in¬
McMaster University convocation,; stitutions and the Stock Exchange
last

lem may have been found through
such corporations as Industrial &

consider what
would happen if all students now
sake of illustration,

employment;

7.777.",.;

Canada.

development subscription

result,, in

and stable economy, f

prosperous

"The

business 7

total

ment

Commercial

and

grow

The corpora¬

tion

economic, con¬
ditions which

then-

loans

secured

subsidiary

Charterhouse Industrial Developr

and

own; business,;
and the main-?

That territory is occu¬

Group. A
this »trust - is the

for

erates and be able to pass on

I and most important job of educa¬

Charterhouse

opportunity

knowledge to their pupils.
-praised the work being done and
'the accomplishments of the edu-! 7; "I .have spoken informally, to
teachers', groups
and have ad¬
cational program through the ap-<
dressed the Ontario Educational
-rpointment of Mr. Gassard as a full
Association
during
its* ' Easter
time paid Director of Education.
meetings this year.'. These contacts
"You will,* I .think, agree that
with, teachers I consider, impor¬
:the year just past was one of ac¬
tant and I will be pleased if mem
complishment in* I. Di A. educa¬ bers could
arrange
for me to
tion," Mr. Kilburn stated. "Train¬
speak to teachers on my work
ing of personnel within our own with the IDA and the benefits to
?
ranks is off to a good start and the
be
obtained fromcontacts be¬
ultimate goal of establishing first-;
tween educators and businessmen.
class practical courses on invest¬
"I came to my work with this
ment
banking , in > universities'
Association with the belief "that
across Canada is at least in sight.
there is a great need for a better
#: "When that is done we. shall
'interpretation to our young people
I have a bridge into the territory
of how our way of life operates.
\ where, in my opinion, our biggest My experience of the past months,
tion lies.

the

enterprise* the

small

being made with provincial
Departments of Education with
the ultimate goal that high school
teachers across the country' will
how

proportion of the total' finance is
found by the promotors. The cor¬
poration has provided facilities in
each or in a* combination; of the

are

possess

manage¬

hearth;

•

similar

"In

failure of

ment. But, the-

graduate each year
will carry with them a better un¬
derstanding of Canadian finance
and the function of; the" Invest¬
who

ment Dealer.

new

poor

and

men

business rests upon the ability of its management to con¬
enterprise with prof it. - All large businesses were originally small ones. Hundreds
businesses are incorporated in Canada each year and the majority fail because of
success

duct the

veloped. In this way we hope that
thousands of young

come from private enterprise and in initial stage cannot be supplied by invest*
through underwriting. Sees high taxes handicapping investment of venture capital and
abandonment of double taxation of dividends. Sayo business should be allowed to carry
or

;

approach Canadian universities
with a view to their making use
of the material which we have de¬
the

capital should

ment dealers

women

(2761)

toronto

quebec

hamilton

london, ont.

r7:.7m79m victoria 7

77"'7'

ottawa

,7 winnipeg

calgary
vancouver
saint john, n. b.

Quebec

15,-1948.

with ours, we can see to it that a
fair and decent story is told of

% free enterprise and something
| taught about its machinery and its
J opportunities. Even if we decided

{ wholeheartedly on such a policy
■) today it. could not be made effec| tive for several years! That is all
4 the more reason not to delay, be| cause in a few years' time the re1 freshing political support of the
J

younger

generation might prove

/ to be valuable indeed."
"I

think

shrewd

than

will

Since 1922"

Complete Over-the-Counter

Service for

•

BROKERS and DEALERS

Canadian-American

Trading

CANADIAN

businessmen

recognize the need for able ag¬
gressive work in making a case
{ for free enterprise to young. Cana-

| dians in order to safeguard what
we know is good. In that direc¬
f

The

facilities

our

Canadian-American,

BONDS

trading service, maintained by private wire

STOCKS

Bank & Insurance

Government

Industrial

Industrial re¬

New

York,

are

available to dealers,

banks and institutions.

public Utility
Real Estate

Public Utility

Mining Shares

tion, in my opinion, lies the next
i and most important phase of our
4
v

educational program."
In

his first report

to the Asso¬
ciation, covering the period from

Nov. 1, 1947, Mr. Gassard outlined
the program for elementary and
advanced

courses1

training. *
"It
•

years

is reasonable to

personnel

'
expect two

hence our program will be

Greenshields & Co

Greenshields & Co Inc

KIPPEN & COMPANY,
f

Investment Dealers

Member Montreal Stock Exchange

507 Place d'Armes,

;

Members

LANCASTER

Telephone

PLateau

5811

Private Wire between

Inc.

Association of Canada

Imperial Bank Bldg., 610 St. James St.,

Montreal
Direct

Investment Dealers'

W., Montreal

5101

Montreal, Toronto and Ottawa

(2762)

THE

CHRONICLE

FINANCIAL

COMMERCIAL

Thursday, June 24, 1948

Improving Professional Status of Investment Dealers] lnvesf"s®nt ®ea,e;s flssociaiion of Canada Holds
Annual

Meeting June 12-16; Elects Ryan Pres.

By JOHN B. RIDLEY*

Director, A.

E. Ames &

Co., Ltd., Toronto

Gerald

tend

Lauds performance of investment dealers in underwriting, trading,
advisory and analytical functions, but points out their income is becoming too speculative, and reason¬
able profit margins should be demanded.

discussing

of opinion

subject of such

general nature there is plenty of

scope

for differences

to both the topic itself and any conclusions expressed. This paper of neces¬
sity must set certain arbitrary boundaries and express some conclusions, which it is hoped
will stimulate

<£-

thinking and
orderly debate
either

now

security holdings of clireliability and dignity.

play individual initiative and en-

plete

terprise.

ents with

Constitution

The

later.

Association's

Dealers'

vestment

Let us

the In¬

states

The performance of the Invest¬
ment Dealers in Canada with re¬

first

accept
meaning

objective is "To promote the spect to all four points recently
one
general welfare and influence of
las been
creditable indeed. Cer¬
the
Oxford
investment dealers, financial in¬
tainly no other industry excelled
stitutions and investors generally its efforts in war finance—Cana¬
English
Dic¬
interested in Government, Munici¬ dian
tionary gives
Victory Loan campaigns are
for
"profes¬
pal and other corporation securi¬ history. In the strenuous period
ties and to safeguard and better since the war the
sional," name¬
maintaining of
ly,, "skilled in
provide for their protection." The an orderly market while caring
the
contem¬
By-laws with respect to discipline for the great capital needs of in¬
plative or sci¬
whereby members may be repri¬ dustry and local governments is
entific
manded, fined, suspended or ex¬ exemplary.
parts
of a trade;
pelled for their own conduct or
i;hat of their business; with respect
that raises his
j. b. Ridley
Investment Dealer's
to audit
trade
to
the
provisions insisting on
Responsibility
dignity of a profession." The same proper and regular reports on as¬
However, some concern might
authority states that a profession sets and liabilities, a minimum be
expressed with regard to the
is;"a vocation in which a pro¬ capital and segregation of clients'
fourth point referred to above. In
fessed knowledge of some depart¬ assets; with respect to insurance
earlier days all the so-called bond
ment of learning is used in its whereby minimum amounts of in¬
salesmen
usually called on the
application to the affairs of others surance must be carried for the same
relatively few investors and
or in the practice of an art foundprotection of members and their did their best
to sell individual
edr on it." /
clients, all assist in beneficially
securities. The investor therefore
The important question is this standardizing the investment in¬ made
his own decision and rightly
can
the
Investment
Dealer dustry.

->»»

should

<Atrade"

profess

the

required
dignity in

knowledge, skill and
tbo handling of its own

affairs

The

regulations and practices
further detail important rules of
procedure

for

and those of others?
Those vocations now generally
regarded as professions deal only
,in knowledge and skill with the

ciation

the

benefit

all

concerned.

dignity
sions

associated

over

the years.

with profes¬
Does the In¬

The

that

can

and

individual

has

Asso¬

exhibited

will

functions.

proper

Dealers'

Canada

perform its
What about the

members?

exami¬

ing and selling securities—acting
from

his

necessarily, but it has its pitfalls.

(1)

of Investment

Dealers'

The Investment

sale

Dealers'

Asso¬

ciation, through its Constitution,
By-laws and Regulations, appears
to be performing its part admir¬
ably. Under vigorous and thought¬
ful leadership and within a rea¬
sonably flexible framework, ob¬
jectives, qualifications of mem¬
bership and standards of practice
have

been

ance

and

evolved

protection

for

the guid¬
of its mem¬

bers. In addition, wisdom has sug¬
gested that the leadership of the
Association
should
not
detract
from
i

the

members'

*A paper read

right to dis-

by Mr. Ridley at

Underwriting
sums

Governmental

(2) Trading—To provide a con¬
tinuing
market
for
investors
through buying from and selling
to the public
outstanding securi¬
ties;
(3)

Advisory—To

issuers

securities

counsel
and

all

take

continuing interest in their efforts
to

assure

availability
investments;

sound

assist the proper employment

savings through having avail¬

able
tion

sufficient
on

which

accurate
to

base

informa¬
honest

opinion concerning individual

se¬

the Forum Session of the Invest¬
ment Dealers' Association of Can¬

curities and sufficient knowledge

ada, Murray Bay, Quebec, Canada
June 15, 1948.

ment

and

experience

and

report

financial

beneficially

with

invest¬

principles to
on

the

pacific

1949 at the or-

n e

much

should

Gerald

This

Osier, Hammond &
Limited, Calgary.

Nanton

Murray,
Ltd., Toronto,

District: Ross

the

intimate

dealer

responsible

Central

District:

position
may be

of
some

ments

M.,

Limited,

D. M. Duggan
Edmonton.

MORGAN, R. H., Wood, Gundy & CompanyLimited, Edmonton.
>
BROOKES,

Corp.

Secretary), Royal
Limited, Calgary.

(Hon.

WESTERN DISTRICT

MURRAY, J. Ross (Chairman), A. E. Ames
& Co. Limited, Winnipeg.
,

Eastern

Nesbitt,

District:

Thomson

Company

Dean,

GRAY, R. A.,
Winnipeg.

James Richardson

Your inquiries on

Securities

Canadian

Invited

are

position.

trusteeship.

IDLAND

dealers who

are

bECUBITIES

LIMITED

There
not

this

change of events.
hoped that in all such in¬
stances they will give serious re¬

HURON & ERIE BLDG.

DOMINION BANK BLDG.

TORONTO. ONT.

LONDON. ONT.

ADELAIDE 1385

METCALF 4500

gard to this added responsibility.
Two

other

possible pitfalls or
should be referred to,
namely, margin of profit and high
dangers

The

dealers'
margin of
becoming dangerously
low, partly through increased ex¬

profit

CANADIAN

and partly through strenu¬
ous competition.
The results may
be that some dealers are tempted

penses

SECURITIES

stray into too speculative risks
for their own good and, unfortu¬
nately, to the ultimate detriment
of

their

clients.

(Continued

com-

Their profit
on

page

be-

1889-1948

27)

OUR

Canadian Securities

AND

HAS ACTIVELY

ORGANIZATION

SINCE

ITS FOUNDATION

DISTRIBUTING

PROVINCIAL,

CANADIAN

MUNICIPAL

ENGAGED

UNDERWRITING

GOVERNMENT,

AND

CORPORATE

SECURITIES.

Government

Industrial

Public

«;

Provincial

Municipal

Railroad

iilT

Utility

IS ALSO ^EQUIPPED TO

ON ALL CANADIAN

EXECUTE

Wood, Gundy & Co.
Incorporated

Toronto

"4R£pa

Wall

Street, New York 5, New York

Montreal

Winnipeg

Vancouver

London, England

INVITED.

AMES

CO.

INCORPORATED

TWO WALL STREET,
Telephone

ORDERS

STOCK EXCHANGES.

YOUR INQUIRIES ARE

& Sons,

(Continued on page 27)

Limited, Montreal.

asso¬

Invest¬

SYDIE, J. E„ Sydie, Sutherland & Driscoll
Ltd., Edmonton.

Ridley,

Co. Ltd., Toronto.

Securities

B., James Richardson & Sons,

DUGGAN,

Securities

a practice of follow¬
advice, the Investment

his

FARNSWORTH,
H. R.f
Royal
Corpn. Limited, Calgary.

YORATH, E. J., Carlile & McCarthy Ltd,
Calgary.

peg.

A. E. Ames

DISTRICT

Calgary,

son,

A. E. Ames & Co.

ALBERTA

ROBINSON, C. S. (Chairman), Osier, Ham¬
mond & Nanton Limited, Calgary.

PHIPPS,

Robin¬

interests,

Dealer is not far removed from

Borrie,

client makes

aware

six

Limited, Vancouver.
District:

r'i

of the As¬

Vancouver

Son

Limited, Vancouver.
DUNCAN, J. L. (Secretary), Wood, Gundy
& Company
Limited, Vancouver.

Ryan

District:

Indeed in the instances where the

ing

A. M., Oldura Brown In¬
Ltd., Vancouver.
L., Royal Securities Corpn.

Col.

vestments

tax

have
private investors to

places

B. C., Samis & Co. Limited, Van¬

GLASGOW,

districts are:

Western

CorpnL

couver.

BROWN,

sociation and Chairmen of the

Alberta

Securities

Victoria.

SAMIS,

Toronto.

Pemberton

Vancouver.

I. D., Dominion
Ltd., Vancouver.

New Vice-Presidents

Pacific

Ltd.,

HAGAR, J. D., Hagar Investments Limited.

Gairdner

district

(Chairman), Pemberton 8c

Vancouver

MAIN,

Company,

Ltd.,

1948-

Vancouver.

James

General

for

WH1TTALL, N. R., Ross Whittall Limited,

ing at Manoir
Richelieu,
Quebec.
Mr.
Ryan succeeds
a

new

are:

Son

g a nization's
annual meet¬

the

Committee

BORRIE, W.

1948-

dealings to one or
very few Investment

ciation

taxes.

(4) Statistical and Analytical
To

1949

for

Canada
the year

F. C. Fisher,
Company Lim¬

their

least

Dealers.

vast

tion

Association

— To
provide
required by mod¬
and Corpora¬
organizations
through
the
of new securities;

the
ern

Rule

help to give

answer.

Certainly not

inheritance

best

driven many
at

merchant—detract

that

own

confine

and

tax

realization
their

functions

professional status?

onus

Executive

laws,
foreign exchange
control
regulations, etc., and perhaps the

nation of the Investment Dealers'

the

The

complexities
of modern business, the necessity
of being familiar with changing

vestment Dealer's function of buy¬

should

shouldered

results.

income

Investment
of

have

the

Personnel

Asso-

ciation

District:

ited, Saint John.

the

m e n

Dealers

Maritime

Eastern Securities

was

Invest

& /

Presi¬

elected
dent

President ,of<^
Co., Ltd.,'

Ryan,

Beaubien

Montreal,

give them professional status.

Canadian investment banker calls attention to growing responsibilities of investment bankers which

TORONTO
VANCOUVER

NEW YORK

WOrth 4-2400

MONTREAL

LONDON, ENG.

WINNIPEG

VICTORIA

Volume 167

THE

Number 4710

COMMERCIAL

FINANCIAL

CHRONICLE

Program for Field Day

Public

Utility Securities

Pacific

Gas

Bond

Electric

man.
^

$184

...

$2.45

$2.00

48-35

2.72

2.00

48-37

Approx. Range

2.16

2.00

46-34

be for

2.18

2.00

35-30

First

139

2.23

2.00

32-23

2.21

2.00

24-16

115

Cup for low gross; team cham¬
pionship—Puelicher Cup for low
gross
for two-man team; team
championship—Ames, Emerich &
Co. Cup for low net for two-man

160

...

L-

1942

1941

2.31

2.00

29-17

110

2.68

2.00

35-25

1939____.

107

2.84

2.00

35-28

1938

101

2.48

2.00

1940
...

......

1937

100

1936-,

■■V.

;

95,

1935

2.71
2.55

1932__._.
1931....

2.67
2.50

85
-

...

f;T'
•;•••

1930

prizes, and Mid-Western Banker
Cup (30-45 inclusive) — 2 prizes;

24-13 .V;
32-15
37-17

2.00

•••

Blind

55-30

•

Power Co.

2.00

99-42

P.;

gross

Why is this perfect "growth" company, whose sales have almost
tripled since 1929, now earning less per share for the common stock
than two decades ago?
'
—
:

drought

The

answer

the

same

severe

for

all the

utilities—the

com¬

heavy burden

much

pany has given back to consumers

(and to the U. S. Government in
taxes) virtually all the advantages
'"obtained from this f growth.
In
with other Pacific Coast

common

companies, the company's residen¬
tial kwh. rates average well below
the national
average
(2.610 vs.

3.080).

Stockholders

getting

are

dividend rate

same

earnings. During the period 192947 the operating ratio has risen
from 60% to 81%, so that net income increased only from $16 mil¬
lion to $25 million.
of

acquisitions
well

structure,

has doubled

•

balanced

the

relieved

company

the amount of

company's

and

storage

fuel

some

com¬

are

electric and 31% nat¬

about 55% of its

being
obtained
but this
supply is now being supplemented
by gas from Texas (via El Paso's
pipe line and other California
own

Natural

from

power

is
fields,

gas

California

companies).
Giving

the

pending

sale of 1,000,000 shares of 1st pre¬
ferred stock ($25 par), as well as
the sale

stock earlier

common

this year and the issuance of about

$75 million bonds last fall, capi;

talization is

follows:.
Millions

•

Mortgage

debt

Preferred

stock

170

Common stock & surplus,.

247

$400

Butler, Herrick Go.

liam C.

Celebrates 50 Years

ing at 2:30

ritory

the

taken

has

company

tremendous

under¬

expansion

stock

cash

tion,

surplus

about

will

June 30)

available

deprecia¬
earnings, etc. only

quarter Of

have

well

from

billion dollars

raised

over

the

next 3 lfe years. There is no indica¬
tion yet as to how this will be

horseshoe pitch¬
Erwin G. Schlei-

Republic

Co.,

adjusted

outing given by a club to which I be¬
Saturday night there was a floor show and several very excel¬
provided the amusement. The last man on the bill
was a headliner who is now one of the top men in his field of mono¬
logues. He followed another comedian who also gave impressions,

long.

lent entertainers

but his

style was rough and ribald and it went over
When he got through with his act his audience was

with the crowd.
pitched up to a,
high degree of intensity and their laughter had been loud and vol¬
uminous. Then this big star came up on the stage. He let his audi-*
ence down easily and
gently. He took them off their high pitch o£
enthusiasm. He spoke softly—he mentioned some of the members of
the Club that deserved the appreciation of the other members for the*
work they accomplished in giving this successful affair.
He eased,
into his act slowly and with hardly anyone noticing what he was do¬
ing. When he got the crowd comfortably back in their chairs he=
started to reach for a few chuckles. Then smiles began to wreathe
the faces of his audience.
He played on that group of about three
hundred people like a master musician upon an instrument.
Then»
when he had established HIS MOOD he went to work. The applause
grew and grew as each part of his act unfolded. When he finished tho>
entire room was on its feet. I had the pleasure of driving him intot
New York the next day and I asked him about the things which I
have related to you. He said, "I had to bring them down again. If ^
went right into my own routine after following the other act it woukfc"
have been necessary to have been louder and funnier than the othe*
comedian. But he became a perfect backdrop for my type of humo«rproviding I set the stage for my own act. Timing is so important iifc
handling an audience. You have to get the feel of it first—then go*
on with
your show."
■
v
\
'
■
The

I think this little story is important is that it illus¬
importance of salesmanship in every field. Here was a*
man who had
gone to the very top of his profession. He told me thai!
it was always ahead of him. He studied his own act in the
light ofr
his knowledge of people. He told me he constantly listens and watches
reason

trates the

the reactions of individuals.

Knowing when to turn on your act is as^
important as what you turn on, in selling, as in show business.
And then I listened to another headliner in his own right. A man,
"

he hovered between life and
death, and he made
of his life in order to live. And after that he

George

Butler

it is the

which

Bro.,

successor.

On the death of

governors.

his

brother

the latter

bany

1911

he succeeded

His

nephew, Andrew
a

member

became President.

with George Gould. Ed¬
Adams, Marsden J. Perry
and other prominent financiers of
that day and took an active part

financing and reorganiza¬

railroad

and

industrial

the

reorgan¬

participated

that of the

was

Allis-Chalmers Co. in 1913, When
the name was changed to AllisChalmers Manufacturing Co. Ar¬
thur

Butler

has

served

con¬

with the firm

15 years. One
of these has been associated with
it for 47

over

years, one

for 37

years

three from 30 to 32 years.

and

The
firm

present members of the
Charles
H. Marshall,

are

Co., Inc. (cap¬

brokers); Leroy W. Gross¬
Marine National Exchange
Bank (captain of dealers); Harold

man.

Emch, A. C. Allyn & Co. (um¬
pire); and W. Brock Fuller, Paine,
Webber, Jackson & Curtis (score-

well

again,

one

Publicity: Howard W. Clark, MidWestern Banker, chairman; Thos.
L. Mosher, The Milwaukee Co.,
and Ralph Rada, Paine, Webber,
Jackson & Curtis.

■■,

He said to me, "I vowed that if I ever got
matter if some day my wife and I might have to live
I wouldn't worry." He doesn't have to do that. He ist

room,
one

to admit it.

man

cess

comes

live and learn—there is education in listening—and suc¬
to those who put to good use the lessons they learn, If

those
in

of us who make a living selling could remember this lesson,
timing that I learned from the actor—and the greatest lesson of*

all that I garnered from
my

friend the builder, that the most futile
thing in the world is WORRY—it would improve our sales ability*
health and happiness, and our bank accounts.

E. F. Hulion

Modernized B'd Room
E. F. Hutton & Company, 61
Broadway, New York City, mem¬
bers of the New York Stock

change, opened June 21 its
pletely

new

tomers'

Board

Raynor Forming

lighted
electric

tional

Bank

ities.

Mr.

the First Na¬

Building, to conduct
investment

business

Room

at $55

The

secur¬

has

and

Charles

Coaney,

manger

ment for John M.

estimated

and

Watkins

will

become

the

that

elected

ticker

formerly Vice-President of Otis ^
Co. in charge of the New York*

and

many

other

was

early

handicapped

for the convenience of clients.

The

Board

Room

1948

past headed his own

Wood

Mr.

firm.

has

been,

office.

Wood

Ovcr-the-Counter Quotation Services
For 35 Years

will

South

the

become

Salle

New

Troup

partner

Street,

York

and

Co.,

in
231

members

Stock Exchanges, on

Rothbart has been associated with

the firm for

some

July 1.

time.

BUREAU, Inc.

NATIONAL QUOTATION

Chicago

of the New York Stock

July 1.

part of

Executive Vice-Presidents

Douglas & Co.,

Frank

the

was

partner in Shields & Co., 44 Wall

Exchange,

facilities

CHICAGO, ILL.—William Roth-

Clarence
a

Burr & Co., Inc., 57 William*
Street, New York City, announces*

Troup & Co. Admitting
bart

Milton

Of Burr & Go., Inc.

Prior thereto he had been an

Inc.

Haneman to partnership on July 1.

Shields & Co. to Admit

cover¬

FrankWoodixec.V.P,

ties, Stock and Curb Exchange
Translux tickers, Dow-Jones news

the latter two limited partners.
The firm will admit William F.

extensive

Quotation Boards

Orde®

formerly
of the municipal depart¬
Raynor

Street, New York City, members

are

million.
company

1947

and

11th

proofed,
fluorescentand well ventilated, the
Room

and

and
Bookkeeping
De¬
partment.
The firm, which hags
occupied offices at 61 Broadway*
for 34 years, has been serving in¬
rooms,

vestors since 1904.

Cus¬

the

ex¬

ing leading stocks and commodi¬

has formed Walter V. Raynor
offices

modern

Ex¬

Wire

new

com¬

Customer's

OMAHA, NEB.—Walter V. Ray¬
Co. with

and

pansion program, which also in¬

floor of the firm's main offices.

Own Go. in Omaha
nor

the firm's modernization

Opens

cludes

Sound

W. V.

me of his struggles and some of hist
eight years ago, when for two days*

tainment; Robert H. O'Keefe, The
Marshall
Company,
chairman;

He told

of the time

of the most successful builders in this country—but this*
also goes to prove that the biggest men have had the same cares and*
doubts that all the rest of us have experienced—and it takes a
biff:

our

committees are: Prizes,
Basing, Gardner F. Dalton
& Co., chairman, and N. Sander¬
son
MacRury,
Merrill
Lynch,
Pierce, Fenner & Beane; Enter¬

that disease overtook him.

today

hour.

over an

He told

tion back to health and that it came upon him at that
time, that if
he was to get well, that as far as possible within his own
power, to*
command, HE WOULD NOT WORRY AGAIN.
His sickness came
from a combination of
worry and overstrain.
He was so run down,

Meyers, Harris, Upham
Co., chairman; Robt. W. Haack,

one" of the greatest builders in New York City sat and talked^
for

the greatest fighfc
spoke of his recupera¬

Albert R.

Other

ward D.

was

with

m.—brokers vs. dealers.
Members of the committee are:

sociated

the

keeper).

During the early days of the
century, the firm was closely as¬

A baseball game
at

Klumb,

chairman.
will be played

Co.,

years.

Butler,
the firm, then

Moran &

tain of

holding the post for 30

Mason,

Robert W. Baird &

President of the Al¬

Susquehanna RR., now
owned by the Delaware & Hud¬
son,

Jacobson, Riley & Co.
A bridge tournament will be
held during the afternoon under
the direction of Ewald U.

Butler, limited part¬
in the present firm, was the

floor member of George P. Butler

Potential write-offs

original cost
basis, however, the ratios would
approximate 53%, 22% and 25%.

the listeners are the gainers.

spent the weekend at

firm in Omaha.

were

great deal of time-

Elwell; Lowei & Co., and Charles

anniversary of the formation
the
original partnership,

Butler

equity; if plant account

ourselves

50th

Pierpont Adams, Andrew R. But¬
ler, J. Edwin Taylor, Arthur W.

ization is 49% debt, 21% preferred
stock
and
30% : common
stock

save

mistakes.

pany

can

under the direction of William C.

special event will also be held

officer of Robert E. Schweser Co.

but presumably the com¬
will stick to its three-way
program so as to keep a wellbalanced setup. Currently, capital-

The main purpose of life, it has been said, is to find out;
When we let people talk (providing they have some¬

thing to say) that is when

who

done,

■t

able to learn from others
and trouble.

shall, 30 Broad Street, New York
City, on June 23 celebrated the

tinuously as a directer of the com¬
pany from the time of its reorgan¬
million was spent in 1946 and $100
ization.
V' J vy\ '/'!<
million last year). However, be¬
Thirteen of Butler, Herrick &
cause
of
financing already ef¬
Marshall's employees have been
fected (including the sale of pre¬
as

Central

program — an estimated $544 mil¬
lion for the period 1946-51
($44

ferred

p. m.

through life experience teaches

Chairman of this committee.

izations in which members of the

$817

Davis, A. G. Becker & Co.

There will

ger,

us many things—if we
have the wisdom to learn from our own mistakes. But when we are
we

.The New York Stock Exchange
firm of Butler, Herrick & Mar¬

firm
-

Milwaukee-Chi¬

Members of the Golf committee

companies.' Among

Due to rapid growth in its ter¬

prizes;

Walter O. Berge, Walter O.
Berge & Co., Chairman, and Wil¬

tion

—

are

also

effect

(four-pian team
—prizes for first place (4 prizes).

& Bro., joining the Exchange on
It generates about fourJune 23, 1898. He later was one
requirements, of its

ural gas.

No.

tenden & Co. Cup

Arthur W.

revenues

hole

championship—Fuller, Crut-

cago

economies for the bal¬

fifths of its electric

hydro.

score—2

reservoirs

of 1948.

ance

drive

2 prizes; largest number of oneputt greens—1 prize; highest gross

now

ner

The

about 69%

longest

practically full, it is un¬
derstood, presumably insuring
are

(1 prize); Putting—LaasCup
putts (2 prizes);
pin, hole No. 12—2 prizes;

nearest

steam generating
equipment. This situation has been

stock since 1929./

mon

care

construction,

to maintain

capital

To take

and

threw

Electric

—least number of

in 1929,

but with less protection in share

which

Bogey—Wisconsin

Cup (75-90)—2 prizes;
Special Guest Events—low gross
(1 prize); low net (1 prize); high

75-41

2.00

2.85

......

">;y

2.00

2.72

"r?.' S;2.62 -p-

1929

(2 prizes); special handicap

Byllesby & Co. Cup (1-15
inclusive)—2 prizes; E. J. Fur¬
long Cup (16-30 inclusive) — 2

32-13

1.50
1.88

2.09

88,

—H. M.

41-31

1.50
/

1.48

1933-....

team

38-22

1.50

individual championship—
National
Bank

Wisconsin

30-23

2.00

.z._u_

1934

the

152

..........

1943

127

1945

1944

special

will

By JOHN DUTTON
As

how to live.

feature of the day
golf tournament wjhich
will tee off at 2 p. m. (greens fee
$2). Events in the tourney will

1946

(

is general chair¬

Paid

(mill.)

Corner

its

Earned

Rev.

1947

Fenner & Beane,

indicated by the following record:

Year—

Securities Salesman

168

phenomenal,

hold

picnic

will

and

try Club, Waukesha. Rolland A.
Barnum, Merrill Lynch, Pierce,

in 1905 and has paid
The company is the second largest
operating utility (Consolidated Edison of New York being first).
The stability of common stock earnings and dividends has been
dividends continuously since 1919.

day

June 25 at the Merrill Hills Coun¬

incorporated

was

Club

field

annual

Electric

MILWAUKEE, WIS.—The Mil¬
waukee

Pacific

sif

Of Milwaukee Bd. Club

(2763)

Established

Mr.

46 Front Street,

Chicago

1913

New York 4, N. Y.

San Francisco

was*

(2764)

THE

COMMERCIAL

FINANCIAL

those who

Life

in
(Continued from
level

enslaved

walk

forced

were

two

draft

stilts:

have

illusions.

the

devastating Four Horse¬
of the Apolcalypse, modern

men

civilization

They
They

has

added

two

more.

high taxes and inflation.
close by.

are
are

Therefore, with full compassion
for

those

certain

nations

matters

difficulties,

aid

them

must be recognized 'on both sides
of the world.
.'
Our

task

solely to aid their
We can provide

reconstruction.

only bare necessities.

There is

for

room

non-essentials, proflig¬
inefficiency. :

acy, or

We must not create a perpetual
dependence of Europe and Asia
upon us.
We must not soften their

preparedness
dangers.
will

Otherwise

only

their

meet

our

undermine

own

sacrifices

their

self-

reliance and the contribution

they

must make themselves toward the

saving of Western Civilization.
We must insist that reconstruc¬

tion

Western

whole*

That

Europe be

include

must

the

been

who

The

whole

moving

efforts fail, but the American

taxpayer will be bled white

porting

idle

and

despairing

German people.
if

And

burdens

sup¬

are

of relief

these

carry

and

armament,

we must have
uninterrupted op¬
eration of the major tools of
pro¬
duction
and
distribution among
all the participating nations.

We
fact

America

that

pirates
Ship of State.

world

steadily

was

these

collectivist

elections, by
Republi¬
can
and
Democratic candidates;
the people showed the first turn
their votes for both the

from collectivism made by any
important nation in recent years.
The

300-year-old roots of free¬

dom in America showed their

sistance to the

influence

The

liberty has
still

echoed through¬

now

world.

out the

X!::' /X:

The deep soil of these 300-year

roots is the

old

spiritual concept

that the right of man to freedom

personal to him from the Cre¬

are

That is

ator, not from the State.

point of departure from the

our

This

others.:

concept,
whatever our faults may be, has
guided our people to a life, not
only of material abundance, but
also a life of liberty and human
dignity. iXXXX ;X;!J
Today
the
American
people
have reached an historic stage
which has come to a few strong
nations in their ability to con¬
tribute to moral leadership in the

spiritual

world.
come

Few

such

people's land;
no

all

the

race

these

alone

nations

that task with

upon

have

few

years

taken

have oppressed

We have

man.

world

have

faced

believed to be in the right and

require

aid.,, At the end of

our

have aided foe

well

ally; and in each instance,

even

wars,
as

the
do

children

of those

hurt.

face

who would

We have hated

have loved peace*
What other nation has

war;

such

citizens, in the Republic

can

pressure

The

Responsibilities

as¬

group

will

sectional

betraying
your opportunity, and tragically
missing the call of your time.
If you temporize with collec¬
tivism
you
will
stimulate
its
growth and the defeat of free
you

men.
,

If,

the other hand, as a ma¬
ture and inspired political
party,1
you face the truth that we are in a
on

critical

battle

people,, but, freedom of the
world, by halting or paralyzing
the

economic

Such

life

have

men

not

this

nation.

been elected

This

by the people to have such
ers.

Representative

it will perish.
battle
out
once
or

business
have

men.

economic

pow¬

government

must be master in its

house,

own

We fought that
with' arrogant

can

cheer

the

world

dom is to

live, than we can have
political tyranny. There are other
ways
for determining economic
justice than war on our people.
The Battle for Freedom at Home

and

men

that

over

the

and lives

eternally here upon this
continent, here among us. XX

Therefore, unusual responsibili¬
ties devolve upon this Convention.
There may be some of you who

here

platform, and

to select candidates for President

Your greater

all

Nor does the battle for
freedom
lie beyond our borders. We

task by far is to generate a spirit
which
will
rekindle
in
every
American a love not only for his

also have been infected with the

country but for the American civ¬

European

ilization. You

creeping

intermittent

fever

totalitarianism.

been

Karl

Marx

mingling
and

germs

Mussolini,

.has

from

with

which

once

American,
a

human
vate

our

and

universities,
our

Our

our

Government.

difficulty lies not

with, obnoxious
our

unions,
intelligentsia,

midst

much

Communists

totalitarian

same

economics

the

bureaucracy, and at the

time

have

personal

liberty

Great

they

they mid¬
they claim
half-way house
as

to totalitarianism.

They should note that in every
of the countries of
Europe

one

are

have

cans

You

personal

for

pri¬

ambi¬

they

before
or

your

time.

courageous

were.

Therefore,
and

I repeat, what you
do here is of transcen¬

importance.

nothing but im¬
provised platitudes, you will give
no hope.
here,
right,

you
no

produce
virile

leadership

fighter

for

the

will have done nothing
of historic significance.
If

you

the

party
free.

And

born to make

was

counsel

by the

military
expenditures abroad and the ERP

bespeak to you tonight
worthy of the

pect

own

our

XX\X-! V.'1 (

program.

all

X'\

than replaced

combination

■.

Summary

year

conclude, the economicprosthe

for

remainder

this

is for continuation of full
employment, further increases in
and profits; and continued
shortages in heavy goods indus¬
tries where expansion of capacity
two

equipment, and
ports

inventories.

were

Ex¬
maximum for

all

The boom of the past

has

years

combination

been

based

of" high

rising

and

incomes, huge liquid sav¬
and' physical shortages ac¬

money

statistics show is that the extraor¬

the

(4) There is considerable

con¬

about the exhaustion of

cern

dinary

excess

buying

power

cally speaking, incomes appear to
lagged behind the cost of

have

above

all past levels has been
living during the last year and a
slightly reduced. Even after ad¬ half; the; inflation does not get
justing for the high costs of liv¬ corresponding credit for'the fact
ing, liquid assets of individuals that they have gone up much more
are
about double the 1939 level than the cost of
living since the
and

fact,

the

percentage

income

annual

heavy

before

was

war.

;

it was in 1920.

Factors of Strength

;

The position of consumers is, in
fact, an element of strength, even
though not quite such extraordi¬
nary strength as it was one or two

The position of the
population
is
extremely
strong, with mortgage debt about
half the level of the '20s, cash re¬
serves very large, and farm prices
high even by present-day stand¬
years

ago.

farm

The

ards.

that

fact

many

con¬

report expenditures in
income

;

ex¬

only that
high propensity to
proves

element

second

strength

in the current situation is the

tinuance of

con¬

backlog of demand
heavy durable goods which
can
be counted on pretty defi¬
nitely for the next year or two*
a

for

In- the

field

demand

some

other

consumer

automobiles

for

fur¬

fields.
goods,

and

for

housing

still outruns productive
capacity, and in the markets for
capital goods there is no prospect
of supply ever catching up with
demand for steel, railroad equip¬
ment, electrical power equipment,
or
telephone
equipment,
until
prices come up into line with the
general price level. Among the
less durable items, capacity out¬
put of petroleum and probably of
paper are so far short of demand
that

minor

readjustments

cannot

seriously impair their sales pros¬
pects.
A

•

third

•

element of strength

economic machine works bet¬

ter in

period, of inflation, esper
cially the middle part of the pe¬
riod, than it does at any other
time. This is clearly shown by the
record
of
economic activity
in
1947

set- forth

the

recent

Economic Report of the President.

was

higher than

production

was

ever

before, and

higher than

ever

in peacetime; housing units com*

pleted

were

number in

ditures

nearly

1946;

broke

double: the

consumer expen¬

all

and per¬

Over a-considerable'range
physical shortages: have- been
made up; and for many people
incomes no longer permit the vol¬
the

of'

ume

expenditure that
and just after

luxury

during

made

was

war.(The transition from

tive
some

an;

sellers' market to competi¬

acute

selling ;is: bound to involve
downward - readjustments

both of prices and volume but we
do not have to have acute short¬

discontent with the inflation: One

But

1941,
There

two main

are

sources

inequity involved in

squeez¬

ing fixed-income people for the
benefit of pebple
with flexible
incomes, which has nothing to do
with

business

the

outlook.

Full

employment does not require the

triumph of justice. The other rea¬
son
for the discontent with the

records,

did

j also private investment in plant,

ages on top

boom.

spottiness is favorable to over¬
high income level.

all stability at a

Banking Group! Sells
Joy Mfg. Com* Slock

Hallgarten & Co* and Ri-' W.
Pressprich & Co; and associates on
recession to be June
22 - publicly
offered;
at
followed by serious depression.
I $38.871/2 a share, 51,500' shares of
shall not discuss this further than
$1 par value common stock of
to say that the idea that the longer
Joy Manufacturing Co.,- one of the
this inflation goes on the worse
largest manufacturers of mining
will be the next depression seems
machinery and equipment for un¬
to me just a bit of superstition.
derground mines in the United
If it had a sound basis that might
States.
The : issue was oversub¬
be a good reason for hurrying up scribed.
the coming of depression.
How¬
The shares being offered are all
ever, the mere fact that depres¬
outstanding and are being sold
sions follow booms does not prove
for the account of the Adams Ex¬
inflation

the

incubating

fear

that

it may

that the booms cause the depres¬

sion any more than

the fact that
depressions nroves

booms

that,the depressions cause booms
,

What

inevitably

generates

slump is not just a price rise, but
a
speculative boom; that is„ one
in

which the demand that makes

the prices comes from peonle who
will pay those prices only because

they think they
the

boom

resell before
This

over.

is viciously

because

tory

can

kind :of

self-inflamma¬

ulates- it.
reached

When

this

stage

level off;
too many holders will sell when¬
ever they think prices have gone

prices

cannot

high as they are going.' Any
oriee is too high from a specula¬
as

standpoint unless he thinks

tor's

identify afterward than at the
going on..
( ;

time it is

We
we

are

did

cheap

financing the boom

the

onv

war,

extremely

cheaner even than
in England where the soend-lend
policy got its theoretirat: formula¬
tion.
The Reserve Svstem has
money,

committer*
nance

itself

of the 2V2%

credit

traditional

policy

the

yield

ments

common

stock

dis¬

proportionate to their other se¬
curity v holdings.
No
proceeds
this sale will accrue

from

to the

company.

members- of - the- under¬

Other

writing group are—Paul H. Davis
Co.; the First Boston Corpora¬

Lehman Brothers; Carl' M.
Loeb; Rhoades & Co.; Scott &
Stringfellow; Shields & Co.; Sing¬

tion;

er,

Deane & Scribner, and Smith,

t".

Barney & Co.

U. S.

Budge! Surplus

•

Around $8! Billion
V

According to the Treasury rec¬

that for the
June 30; the

ords* indications are
fiscal

year

plus

receipts

tures of

The

ending

Budget will show a sur¬

Federal

over

expendi¬

approximately $8 billion.
from; income

revenues

tax

long-

debt, due June 30, the high rec¬

ord

reported

surplus of $7,997,771,000
on

June

18,' will prob¬

excessive ably be reduced to slightly

tive'influence

however,

the

Joy Manufacturing Co, to be

than

will

are

selling these shares because they
deemed their respective invest¬

booms has been laid aside: a posi¬

if necessary to prevent

American

and

Adams

Both

mainte¬
on

instrument

against

tional

payments due June 15 are coming
in at a heavy rate, but because of
interest payments on the public

term government bonds, whether
the budget is balanced or not Th^
chief

Co* and American Interna¬
Corp. Of the total, 36,200
shares are being sold by Adams
and
15,300 shares by American.

press

in- pr'ees

rise

the

does not curtail demand but stim¬

is it is
going higher.
the monetary and fiscal situation.
V I do hot-believe .we have auv
This
is
admittedly inflationary.
evidence that any
considerable
No deflation in history ever started
proportion of present prices aro
in
a- cheap
money
period — al¬
in the soeculative zone, though
though in 1937 the tightening was
admittedly speculation (is easier
moderate.: The fact is that
.

war

petuated by bottlenecks in capa¬

of inflation to have a
Prosperity has been spotty
for the past year and will continue
to be spotty unless the interna¬
tional situation changes radically.

beginnings of the serious inflation

current

is only half as

cumulated from the

is the

debt is still lower

consumer

than

During the year 1947 employment

If you produce

this
men

government expendirising and government
receipts
have
probably
passed
their peak until the next tax re¬
vision. The export boom bids fair
are

city.

tively infrequent.

our

problems are,
greater than Ameri¬
your

less able

arms

bond

the

..(

Finally,

The satisfactory elements in the
situation, however, are overshad*
con¬
owed in public attention by the
sumer stocks of liquid assets and
strong upward movement of prices
the lag of incomes behind price and
profits.
The
inflation
is
advances, although all that the blamed for the fact that, statisti¬

kind of financing has been rela¬

very

man.

met

are no

than

dent

are

died

overshadows the burning love for

say

thinking convinces them

they

and

liberty, who knew

interest,

the freedom of

confused

that they are liberals—but if
they
are liberals, they have liberalism
without liberty. Nor are
to be:

lived

tion, no popular acclaim, no ad¬
vantage of pride or place which

for the people and
representative
government in the nation.
Their

dle-of-the-roaders

with the fuzzy-mind¬
ed people who think we can have

hands of

made r t h

word,
stirring description of

who

man

its tentacles into

labor

here to feed the

reviving fires of spiritual fervor

cheers from the Communists. This
collectivism has slowly inserted
our

are

that call to

tightening would

'stability

tures

ings,

slackening

and Vice-President.

tone

which your political ancestors is¬
sued at Ripon, Wisconsin, when

such

market.

peacetime.; Productivity was
higher than in 1940, while govern¬
ment expenditures were lower.

if there should be

pass upon a

full

is difficult;

Moreover, in the
past, stock market strength has
facilitated the floating of common
stocks; in the present boom this

ther

only to

threaten

victory.'

difficulty.

even

believe that you have come

right thinking. If you choose your
leadership with full recognition
that only those can lead you who
believe in your ideals, who seek
not only victory but the oppor¬
tunity to serve in the fight, then
you will issue from this hall a
clarion call, in as pure a note, in

has characterized the late
every industrial boom,

because

(Continued from page 7)
of

day is not done, that night has not

liberty lives—

the past

stages

wages

come—that human

tyranny, if free¬

free

ening of money markets which in

dations of faith, of morals, and of

un¬

consume.

It
is
these>: concepts
of your
country that this Party must bear
high as the banner of a marching
army.
From here free men and
women

life

us a

will be guided

you

The lob of the Business Forecaster

there is still

Convention

women

God, have brought to

liberty, then

in every step to restore the foun¬

to make yourselves

sume

own.

der
of

our

safeguard'
which,

nation and civilization

cess

the power to endanger not
only the health and welfare of our

that

interest,

sumers

the

group

population, and satisfy this

our

friendship, with
compassion, with a genuine love
and
helpfulness fop our fellow
men.
In war, in peace, in dis¬
aster, we have aided those whom
we

to be played for per¬
advantage, you are wasting
your time and effort.
If you will calculate what will
please this or that little segment of

battle is

But the

on.

believe that politics is

a game

re¬

collectivist blight.
of our rebirth of

record?

must

citizen,

upon

Congressional

our

ladders

roads until two years ago. Then

wars

our

the

along

liabilities.

Europe will die. We
neither forget nor condone
Nazi guilt, but a free world must
not poison its concepts of life by
accepting malice and hatred as a
guide. Otherwise, not only;; will

Communist

have boarded the

Germany,

Communists,

totalitarian liberals

the

restoration of the productivity of
need

the

provided

which

should

the

is the

one

exporting more
than our surplus through relief;
the other is a
great armament
program.
We cannot go higher on
these stilts, or we will break a leg
getting down.
To

has

completely con¬
fiscated, the take would provide
only
of the budget.
There are other warning signs.
Our reputed prosperity has begun
to

11)

page

Thursday, June 24, 1948

sonal

where 400,000,000 people are now

remaining untaxed income above
that

only

CHRONICLE

exercised

that tight¬

$71/2. billion—a record high,

of the nation.

the financial
'

annals

Volume

167

Number 4710

THE^eOMMEROfiyb^ FINANCIAL

CHRONICLE

Bradstreet

daily wholesale ; commodity price index rose to 288.82
15, from 286.25 a week previous. The current figure com¬
pares with 258.74 on the corresponding date a year ago.

C. J. Devine Opens
D.

;

C. —C.

Inc., 48 Wall Street,
City, announces the

York

opening of
'

Washington office in

American

Security
Building. The
firm, which
specializes in
Government
securities

and

state and

mu¬

nicipal

has

now

ces

bonds,
offi¬

in 10 cities.

William

o a

who

a n

has

been

William K. Hoagland

Representing the firm in
dealings with eastern and mid-

ager.

western

banks,

tached
New

has

been

various- times

York,

at¬

the

Philadelphia,
Chicago and St. Louis offices.
Boston,

All this means

will be heard, the magazine notes. *
For some reason the steel industry

its public and its consumers

ations,

because

shutdown

,A-A'
has been unable to get

across

power they need,
(2) the loss of steel because of strikes has
deeply into steel output and repair and maintenance costs, and
(2) at no time has the industry done anything but strive to its utmost

turn out

the routine coal
steel

possible. If the wage-price cycle and
impasse continue much longer, the frustration among
be too much for even their rugged constitutions,

much

steel

officials may

the trade paper adds.
The
eral

Trade

•

reaction of steel

general

Commission

cease

and

still unalterably opposed to a change

I of

selling steel.

; •

•,

leaders to the proposed Fed¬
desist order is that they

are

in the basing point method

A-

They do concede that phantom freight—charges not actually in¬
curred—may, and probably should, go out the window, But the main
complaint was that they believed that sooner or later the Federal
Trade Commission would rule absorptioif of freight illegal—a point
not mentioned in the proposed order—unless it was on an individual
basis. This, say steel sales people, is a physical impossibility, or at
least would make absorbing freight so difficult that most steel
firms would sell in their own backyard.
'

Still

other

Vots g<es
where

the

Mo u n tains ./campaign,
he received a battlefield

promotion, the battle of Colmar,
the? breach of the Siegfried Line;

industry bow to reasoning which the Commission
trying to put across for years, "The Iron Age" concludes.
;

has

The American Iron and Steel Institute announced on

unsettled

were

last" week

with

price

been

Monday of

good rains in northwestern spring wheat areas and also in Canada.
Corn prices showed strength
during most of the period but declined
ill late dealings as a result of rains
belt.

over

large portion of the

corn

";v;.

Trading in grain futures on the Chicago Board of Trade
increased sharply for the week but remained
considerably below
a

year

ago.

Flour business showed

slight seasonal pick-up but transactions
for immediate needs. Shipping direc-/
tions however, continued at a brisk pace,
causing a steady reduction
in flour backlogs. Lard prices held
steady at a slightly lower- level
with trading fairly active aided by good commission house
buying.
Livestock values again moved higher as demand in the
principal
primary markets continued to outstrip supplies. Steers advanced
$1.25 per hundredweight during the week; hogs gained 75 cents and
lambs rose $2 per hundredweight.
With the supply position still
tight, the cocoa market continued firm with small offerings reported
from primary markets.
still

were

small lot basis

Cotton prices moved within a narrow range during the
past week.
The trend in values
numerous

markets

and

was

demand

sales

for

the

again mildly downward.
remained

week

Inquiries

relatively quiet.

less

were

the

spot

reported af 40,200 bales, as com¬
pared with 37,500 bales the previous week, and 33,300 bales in the
week

same

steel

producers were hard-set against the assumption
that an f.o.b. mill system would help those customers far removed
from the steel centers.; All in all, it will be a bitter fight next
year when the Federal Trade Commission tries once again to make

During his army service, Mr.
Hoagland A* participated ^ in ' the

markets

Wheat prices were easier late in the week fol¬
lowing the issuance of the June 1 government crop report that fore¬
cast yields of both winter and
spring wheat at well above general
expectations. In addition, there was some selling pressure based on

(1) it is the victim in coal negoti¬
steel mills gives the mine workers

cut

grain

movements irregular.

the

exception of four years spent in
the army; will be resident man¬

Leading

out—if no settlement
that steel output is under

wears

There is everything in the industrial picture this week to indi¬
cate that once again the crazy swirl of wage and price increases is
on its way and it
may not be long before the cry of a fourth round

A^VvAA'A- 1934 with the

80-day injunetioii

an overhanging cloud that may turn into bad news at any time.

■j

with C. J. De-

Co.,
In c., since

the

is made by that time.

associated
vine

(Continued from? page 5)

forth) when

Devine & Co.,

New

June

Washington Office
WASHINGTON,

(2765)

were

ago.

year

slight improvement

was

■

noted in domestic demand but

mills continued to buy sparingly.

Export-demand

showed

most for premium qualities

little

activity

with

inquiries

jh short supply.

)

Among the factors tending to depress prices were the delayed
buying policy of the .European Cooperation Administration and
continued favorable weather and crop news from the cotton belt.
With few exceptions, progress and condition of the

the crossing of the Rhine and the

this week the operating rate of steel companies having 94%

march through Germany

was said to be good.
steel-making capacity of the industry will be 96.2% of capacity for
the week beginning June 21, 1948, an increase of 0.2 point, or 0.2%,
;; j
The downward trend in carded gray cotton cloth markets was
from last week. A month ago the indicated rate was 96.8%.
again in evidence and buyers showed little inclination to purchase

to Stutt¬
gart. Enlisting agra private, he
rose to a first lieutenancy,
x
A

$40,000,000: Delaware
Memorial Bridge Bonds

Placed
Alex.

Brown

V
This week's operating rate is equivalent to 1,734,000 tons of steel
ingots and castings as against.
tons last week, 1,744,800 tons
month

1,672,900 tons; or 95.6% of the old capacity one year
ago and 1,281,210 tons for the average week in 1940, the highest
prewar year.
* '*
- .
1
a

Kidder,

Sons,

xPeabody & Co., Harriman Ripley
&

-Co.; Inc., and Lehman Brothers
jointly
head
anr underwriting
group of 121 members that offered
publicly on.' June 22 an issue of

corresponding week in 1947.
They also represent
39,030 cars or 4.5% above the same week in 1946.

Memorial

Delaware

yield

about'3.76% .td-maturity;
The

bonds-

issued

are "

the

State of Delaware for the purpose

of'' providing; funds

for the

con¬

traction of the Delaware Memorial
Bridge and the acquisition of cer¬
tain ferries; They will constitute,
in

the

and

opinion of counsel, valid
obligations of the

binding

State of Delaware,

principal and

interest being payable solely from

derived

from

operation
of. the Bridge and the Construc¬
tion Fund. Interest is exempt from
revenues

all

income

Federal

taxes

under

increase

ELfeCTRIC OUTPUT REACHES HIGHEST POINT SINCE WEEK
ENDED MARCH 13

Bridge)

bonds at 104%%, to

revenue

the

interest

thereon

and

exempt

are

from all* taxation within the State
of

Delaware, under the Acts
thorizing their issuance.
At the
way

au¬

option of the State High¬
the bonds are

Department,

redeemable

lOOVi

plus V\ of
1% for each 12 months' period, or

fraction thereof

from

the date of

redemption and the date of ma¬
turity, but not exceeding 105%;
for sinking fund purposes on any
interest payment date on or after
June 1, 1953, and in whole on any

interest payment date on or after
June 1, 1963, plus accrued interest

in each

case.

;

The amount of electrical energy

following

the Senate the day
rode

the

President

previous,

Truman's

over¬

veto

Reed-Bulwinkle

Bill, which
would exempt railroads, sleeping
car companies, freight forwarders,
carriers by water, pipe lines and
motor vehicle transportation com¬
'

panies from
tiota, arising

anti-trust prosecuout of rate agree¬

ments, when approved by the In¬
terstate

Commerce

Commission.

FOR

Promotional

frequent and

considerably

TRADE

WEEK

AND

CONTINUES

FAVORABLE

YEAR

sales

seasonal

merchandise

slight reductions in the prices for
stimulated the demand.

Requests

for

credit

continued

merchandise

some

and

numerous

some

since that for the week ended March
A! stores held to the practice of inviting charge accounts.
It was also 482,Pre-Father's Day promotions of men's
wear
stimulated the
955,000 kwh., or 10.3%* higher than the figure reported for the week
buying of some gift items, but demand for coats and suits was gen¬
ended June 21,< 1947,- and was 1,030,092,000 kwh. ip excess of the
erally sluggish.
Summer cotton dresses and lingerie continued to
output reported for the corresponding period two years ago.
sell well along with formal, graduation and
wedding gowns.
Jew¬
AUTO OUTPUT LOWER FOR WEEK BUT ABOVE 1947 LEVEL
elry was still among the more popular gift items and a slight in-'
crease, in the demand for sport
Production of cars and trucks in the United States and Canada
clothing and beachwear was noted.
declined

107,249 units from

109,831

A'j

(revised)?' units the previous

week, according to ^Ward's Automotive Reports."

Rising output by Ford, plus resumption of West Coast

for

assem¬

Chrysler, offset most of General Motors 8,400 drop caused
by the closing of its Michigan assembly plants. ..
'
T
Output a year ago was 102,545 units and,' in the like week of
1941, it was 133,565 units.
'
week's

of 72,463 cars and 29,121 trucks
3,490 cars and 2,175 trucks made in
Canada;- •'1 -:^^
: ^v; 1 •r"f^i':
output consisted

With outstate G. M. plants, including almost all Chevrolet as¬
sembly units, to be closed,^ volume this week probably will take
a
decided drop despite resumption: of G. M.'s Michigan operations

both Ford and Chrysler, "Ward's" stated.

fresh

meats,

FAILURES

SLIGHTLY IN

EASE

WEEK

the

corresponding week
A

Regional

level

week

some

The decline from last week's level

involving liabilities of $5,000

and

compared

with

was

entirely

among

fail¬

which fell from 92

in the corresponding week

year

Small failures with losses under $5,000 rose from 18 to 23,
twice

the

number

failing last

1.0% IN WEEK

estimates

canners

pur¬

Pre-Father's

year

ago.

exceeded'those

Coast 4 to 8.

volume

remained almost unchanged at the high
preceding week.
While unit volume dropped off in
lines, the total dollar volume of wholesale trade
moderately;
of

the

Department store sales

country-wide basis,

taken from

1948,
compared
decrease of *4%
in the preceding week. For the four weeks
ended June 12, 1948, sales increased
by 5% and for the year to
date by 6%.
'
v\ith

year.

Retail trade in New York last week
of

as a

result of the advent

Father's Day

and favorable shopping weather, exceeded the
sales volume of the like week of last year by close to
20%, or
second

largest gain

in the

year.

...

According

the

Federal

Reserve

Board's

continuing uptrend in food prices lifted the Dun & Bradstreet
wholesale food price index for June 15 to $7.18, up 1.0% over $7.11
a
week previous, and a rise of 15.1% above the $6.24 on the same
date a year ago.
The current figure marks the highest level for
this index since Jan. 20 when it stood at $7.25; it is only 1.4% under
the all-time high of $7.28 recorded on Jan. 13, last.

index, department
weekly period to June 12, 1948,
last year. This compared with
a decrease of *8% in the preceding week.
For the four weeks ended
June 12, 1948, sales increased by 5% and for the year to date
by 5%.

WHOLESALE

and

COMMODITY

MODESTLY IN

The

wholesale

AVERAGE

ADVANCES

WEEK

edged slightly upward last week
largely due to persistent strength in livestock markets. The Dun &
price

level

very

the Federal Reserve Board's index for the week ended June
12,
increased by 1% from the like period of last year. This

the

FOOD PRICE INDEX RISES

exceeded that of the corresponding week a year ago.

of 1947 and

of a year ago by the
following percentages: New England 6 to 10, East 7 to 11, South
5 to 9, Middle West 8 to 12, Northwest 11 to
15, Southwest 12 to

Wholesale

ending June 17, Dun & Bradstreet, Inc. reports; While
failing exceeded the 70 occurring in the comparable week
were four times as numerous as in 1946, they were only
one-third as high as in pre-war 1939 when 310 businesses succumbed.

remained

Retail volume for the country in the period ended on Wednes¬
was estimated to be from 8 to 12% above that of

concerns

foods

day of last week

Commercial and industrial failures declined from 110 to 100 in

the

all

Meat and butter substitutes continued to sell well with demand

16 and Pacific

BUSINESS

almost

housewives refusing to pay the high prices
but the dollar volume was almost unchanged

some

large for fresh fish, poultry and frozen foods.
Home
chased large stocks of fresh fruits and vegetables.
Day volume in liquor stores increased somewhat.

made in the United States and

and expected gains by

buying of

at the high level of recent weeks.

blies by

This

Consumer

high level with

facturing and retailing.
by

WHOLESALE

A A spurt in gift buying for Father's Day boosted retail volume
during the period ended on Wednesday of last week.
Total dollar
volume of consumer buying moderately exceeded that of both the
preceding week and the corresponding week a year ago, Dun &
Bradstreet, Inc. reports in its current survey of trade.

Two-thirds of the week's casualties were concentrated in manu¬

action

quiet the

13, 1948, when 5,284,641,000 kwh. were turned out;

over

17, the House of Rep¬

AND

SHOWING

V*#;

On June

cotton

raw

••

rather

was

the highest production reported

resentatives,

wool market

•

prices in foreign primary markets continued strong and higher.

RETAIL

distributed by the electric light

and power industry for the week ended June 19 was 5,159,255,000
kwh„ according to the Edison Electric Institute.
This was an increase
of 27,444,000 kwh. over the output in the preceding week, and was

ago.

Passes Over Veto

raw

\;.A

ures

Reed-Bulwinkle Bill

*/,'

•

past week following the broad activity which featured trading in
recent weeks, prior to the announcement of an upward
adjustment
in selling prices of CCC wools which went into effect on June 7.

existing statutes.-: The bonds

/AA:

Trading in the Boston

Wool

Loadings for the week ended June 12, 1948, totaled 906,948 cars,
according to the Association of American Railroads.
This was an
increase of 85,735 cars, or 10.4% above the preceding week, whiclj
included Memorial Day holiday, and 11,656 cars or 1.3% above the

$40,000,000 State of Delaware (The

markets.

crop

new

goods for forward delivery in view of the easiness in the

ago,

()AR LOADINGS UP 10.4% IN POST-HOLIDAY WEEK

Market

oir

of the

store sales in New York City for the
increased 1% above the same period

*In

using year ago camparisons for the weeks ending June 5
May 29 allowance should be made for the fact that in regions

observing the Memorial Day holiday store closings this year occurred
in the week ending June 5 whereas last year they occurred in the
previous week.

COMMERCIAL &

THE

(2766)

FINANCIAL CHRONICLE

Thursday, June 24, 1948
be then

Recommendations

Getting Capital for Small Business
sure and ready source for this
initial, venture capital. Further,

(Continued from page^ 21)

Sources of Capital in Canada

our

sources

own

country,

of capital for small

find
busi¬

do not think that this country

should provide a sure and ready
source.
The businessman with a

good idea in the form of a new
"United States, and in part only, product — a new service — must
perhaps, Similar to Great Britain. back his idea up with his own
jHrst—the Industrial Development capital—with sufficient enthusi¬
Bank, government sponsored and asm to persuade his own friends
controlled as we know.
A sub¬ to back him—with months, prob¬
sidiary of the Bank of Canda, the ably years, of personal effort to
bank was established by Act of prove that his idea is practical and
Parliament in 1944 to extehd fi¬ will in time reward his efforts
nancial assistance to sound indus¬ and the capital already advanced.
trial enterprises which are unable Isn't this typical of free enter¬
to obtain their requirements from prise? At that stage in the devel¬
other sources on reasonable terms opment of the idea when some in¬
and conditions. It is intended to dication can be given of its prob¬
supplement, rather than compete able success, of the initiative and
nesses

similar

sources

the

with, the activities of the char¬
tered banks and Other lending

resourcefulness

the

reveals

approximately 20%
production
has been

the

form

investment.

During

this period productivity of

labor

been in the

$5,000 to $25,000 cate¬

promising, the management ag¬

In the three years during
which it has operated, the bank
has authorized credits to 443 firms
across Canada for a total amount

gressive and sincere, to do what
he can to make this business into

$26,735,809, or an average credit
of $60,350 per firm,
A source of true venture capital

paragraph

gory.

■

larger business?

substantially increased as a
result of the worker being given
more
and better machinery and
At the

tools with which to work.

time, labor's real wagespurchasing power—were likewise
substantially increased.
During
the period 1930 to 1938, new cap¬
ital was not readily available to
industry. This is not to imply that
lack of capital caused the depres¬
sion of the '30s, but there is sig¬
nificance in the fact that during a
period of capital deficiency there
was no prosperity.
same

are

informed—and

indeed

agree—that the need at the pres¬
ent is for equity financing, stock

new

comparatively

not be possible.
Hundreds and hundreds of

venture may

Why?

natural resources
has been and continues to be ex¬
ploration companies, mining and,
oil companies. We would go fur¬
ther and say that the personal
savings, the capital of Canadian
investors, in the past has been
.generous in its support of the de¬
velopment of natural resources.
Why?
There are two reason^
first, the fact that the reward
when
obtained
is
sufficiently
worthwhile to attract capital; sec¬
ond, tax concessions now in effect
ia the form of complete exemp¬
tion from taxes for new mineral

new

underwriting

of securities in this

In Canada specifically for the de¬

velopment

that

businesses

Equity capital should come from
the retained earnings of corpora¬
tions

the savings

from

of in¬

dividuals with incomes exceeding

in the preceding

We mentioned

are

suggestions concerning capital for
(1)

bank

Commercial

should

not
of

source

business.

credit

considered

permanent capital
It

not

.the

for

proper

function of bank credit.

activities.

With

modest

excep¬

poration described in earlier para¬
graphs—the capital of such cor¬
poration being subscribed by ex¬
isting financial institutions, in¬
cluding investment dealer firms,
investment trusts, insurance and
trust
companies and chartered
banks.

Getting Venture Capital

smaller

-.f

responsibilities
to
provide the funds for industry,
and, on the other hand, provide
satisfactory investments for the
investor. To undermine the con¬
fidence of the investor would be

Undoubtedly, this is a serious
sincere suggestion.
Let us
deal first with "the other type to destroy the whole
purpose for
of thing' —which this paper would
bringing industry and the investor
take to be venture capital in the together—the whole
purpose for
strict sense of the word—initial which
capital, savings, are accu¬
capital to finance, sponsor and mulated.
promote a business "idea." This
Where Capital Comes From
country certainly wishes to en¬
courage "ideas"—original think¬
Capital for the expansion of
ing—a new product, a new serv¬ large or small businesses has al¬
ice—all large businesses had a be¬ ways come from three sources—
and

ginnings-all

were

small at one

time.,
7

is obvious that there is not

In this country or

which

small
you

large business,
invest by buying

labor, the income from invest¬
ments, the income of corporations

—21%—goes to the Federal Gov¬
ernment.
Add to this figure the

operating provincial and
municipal governments, and we
find a staggering portion of our
national income is now required to
carry the exoenses of governm ent
Risk capital, venture capital,
will be forthcoming—and in vol¬
cost

ume—when

one

handle

and

the investor.

(5) Permit corporations to
forward

losses

carry

apply against
subsequent earnings for a period
considerable
small

This would be of
assistance
to
new

businesses,

which

usually*

sustain losses for the first several

of their existence.

years

(6) Members of the investment
industry should go out of their
wajr (a) to
in judging
able

issues of small
$100,000. In¬
dealers are merchants

make their experience
business risks avail-*
small companies, (b) to

capital

amounts—less

vestment

than

spirit that

narrow

this problem of providing venture

se¬

capital to small businesses has
been approached.
It is in
the

curities have limited markets, af¬

national interest that small busi¬

ford

nesses

of securities.

Small issues of

considerable

risk

and

are

should

thrive

and

grow*

costly to the company in need of

These

capital.
(4) Double taxation, i.e., taxing
of corporate profits and taxing of

private

dividends in the hands of the in¬

provide incentives in the form of
Corporate tax elimination or re¬

should

vestor,
favor

one

income tax.

with

be abandoned, in
tax—the individual

compromise, and

view to aiding small com¬

the

are

very

enterprise

of the
system.
The
core

government may well take a lead
from business management land

duction.

It will

increase

two

investment

things-

private

panies, we suggest that the first
$25,000 of net profits of all cor¬

funds in common stocks and stim¬
ulate business management to be
still more effective. We, in Can¬

porations be exempt from taxa¬
tion, and that the tax (if retained)

ada, need risk capital for healthy
industry and healthy employment*

(Continued from page 20)
and

timated

after

will

the

and 35%

mendous expenditure—a fractioni

spent

far out of line with sound finan¬

payment

dividends

from depreciation for a

total of 58% from what might be

"internal" corporate
balance "mostly by
of working capital and from

regarded

sources—the
use

bank loans,

■^
vmajor source of capi¬
tal for industrial expansion is, of
course, provided through the issue
in Canada of corporate bonds, de¬
bentures,
preferred
stock
and
common shares. However, in each
of the 10 years ending in 1946 the
total of corporate bonds outstand¬
ing in Canada diminished. In 1947;
the trend was sharply reversed
and new and refunding issues of a
gross amount of $424 million pro¬
.

A second

duced

net increase in outstand¬

The aptual result in the case
preferred and common stocks
not

readily

available

but

of
is

the

trend has been to small net retire-

profits were made non-tax- mehts of preferred stock while the
able, it is obvious that there would total of common stock outstand¬
to

Dominion-Provincial

cial

policy. I say to industrial
management that this is no time
to be extending your bank loans
for purposes of expansion—it is
no time to be using your working
capital position for purposes of
expansion.
You have available
to

that is still
in yield of ail
all-time low—a preferred share
and an equity market that are
reasonably attractive. Under such
conditions industry would be well
advised to finance as they go and
you

within

bond rate

keep their liquid position sound
available

and

contingency that

with

deal

any,

arise. Such
action would also be a strong antiinflation influence, resulting in
the active employment of surplus
funds of

may

citizens.

our

■«

Sale of New Issues
The sale of

stocks

and

issues of bonds

new

Canada

the

over

past few years has been accom¬
plished almost entirely in the do¬
mestic investment market and
der

present

Foreign

un¬

Exchange

Controls such must continue to be

the

case.

In all previous
tal

periods of capi¬
expansion in Canada, we have
a large supply

had the benefit of
of

from

funds

external

sources,

England or the United
States. Today we have only the
United States to look to, and as a
result of our Foreign Exchange
policy this source is to all intents
and purposes cut off due to the
fact that funds in quantity will
not flow into a country operating
namely

under controlled
so

the

third

conditions—and
of funds is

source

temporarily, at least, dammed up*
Effect of Exchange Controls
■

And

this brings us to the sub¬

ject of much debate—the Foreign

Exchange Control Board and its
actions in recent years. One can¬
not help but feel that the Govern¬
ment action in adopting parity
with the U. S. dollar in 1946

ing bonds of $85 million.

rate

not to occupy

growth
years, 1900 to 1930

two—

dividends received by in¬
dividuals—is removed. If corpo¬

industrial

these

have

Canada's

the tax on corporate profits,, the
tax

(1) nrofits of the company itself
(2) banks, (3) investors. A studv

in any country during the 30

If the

sonably assured of profits at least
in these two 50 % greater than would be re¬
years was over $17,000,000. Some quired if there were no corpora¬
risk financing was included. This tion income tax.
small financing will continue—
Taxation is affecting the supply
indeed the volume may well grow of funds for investment. It is ex¬
—but here ggain as in the case tremely important that Canadians
of
the
Industrial
Develonment take note of the fact that approxi¬
Bank, the financing should be mately 21 % of the national in¬
extended to sound enterprises. The come, that is, of the income of
tions— two

benefit

businesses

(3) As a general rule, the ma¬
chinery of the investment dealer management companies which
industry cannot be expected to may provide the needed capital;

of Reconstruction

The total of this

Investment dealer has two func¬

the

owner of the
small business and individuals or

Effect of Taxes

financing

less.

making constructive
for

large

and

bring together the

$10,000 a year, who may be able
willing to take a chance with
their money. But it is the incomes
over
$10,000 that are heavily
taxed.
,'W-:

year.

$400,000

small

of five years.

(2) There may be room in Canada for the type of British
cor¬

Supply esin 1948
55% is assigned to business enter¬
common shares, loses money, you
prises and the balance to hous¬
only one bad securities issue to
and your fellow shareholders suf¬ ing
and v government
projects.
shake it.
fer and no one else. If the busi¬ These
corporate capital expendi¬
With respect then to the initial ness makes
money—the Federal tures are divided in turn into 35%
capital—the true venture capital— Government takes 30 % of the net for new construction and
65% for
this paper concludes, that there
and, in addition, the Governments new machinery and equipment.
is no magic formula, and that the of Ontario and
Quebec collect 7%, The $iy2 billion which, it is esti¬
original sponsor of the "idea" will with the remaining provinces col¬
mated, will be spent in 1948 by
himself, and perhaps with his lecting 5% if business is done
business enterprises compares
friends, continue to supply this within their jurisdiction. In other
with $1,381 million in 1947, $823
original capital, although we are words, a total of 37% of the net million in 1946 and
$516 million
not willing to believe that Cana¬ is collected in taxes if the business
in 1945.
;
dian investment dealers are ig¬ is located in Ontario or
Quebec.
Sources of New Capital
mines for the first three years of noring any profitable and prudent But that is not all—if this business
operation, a cost aid plan or sub¬ investment opportunities in this
Let us pose the question a/ to
pays out a portion of its remain¬
sidy to gold mines and special connection.
ing profits (after corporate in¬ where the funds represented by
depletion allowance. To the indi¬
this $11/2 billion which, it is esti¬
come tax) in dividends to you as
Role of Investment Dealers
vidual investor himself, conces¬
a
shareholder, the government mated, will be spent by business
sions are made by the Income Tax
We will now explore the sug¬
taxes you. You gre that $10,000 enterprises in 1948, are to come
Act with respect to dividends re¬ gestion that new risk capital for
from.
or more a year individual who is
ceived from mineral and oil stocks. smaller
enterprises
should
be counted upon to provide this very
Foremost among the sources of
In March of this year, Mr. Don¬ found in Canada through the fa¬ type of capital, and, in the $10,000 capital for business and industrial
ald Gordon, Deputy Governor of cilities of investment dealers.
and higher income tax brackets, expansion is the corporation itself
"the Bank of Canada, a director of
There are many investment you can appreciate what is left —through depreciation and re¬
the Industrial Development Bank firms, not the largest dealer or¬ net to
A study of 709
you as a return from your tained earnings.
and member of the executive com¬ ganizations to be sure, but the risk investment after the individ¬ Canadian companies made by the
mittee, made this suggestion to small firms comprising two to ual income tax is deducted. Again, Bank of Canada shows that in 1946
the investment industry in Can¬ four or five able investment men, an extra 4% tax is added on that
$429 million of additional invest¬
ada: "This country needs machin¬ which will supply capital of $100,- part of your investment income ment was made—65% in
plant and
000 to $400,000. During 1946 and which exceeds $1,800 a year.
ery through which risk capital
equipment and 35% in increased
can be raised within its own bor¬
1947 at least 60 issues of securities
All of this surely means that inventories. Twenty-three percent
ders for the development of al¬ were underwritten by investment few indeed will put money into of this investment was obtained
most every phase of its economic dealers and involved amounts of new enterprise unless it is rea¬ from current earnings retained

tions, new risk capital for smaller
enterprises cannot be found in
Canada through the facilities of
<mr< investment dealers, and we
need techniques to fill the gap.
The government has provided some
facilities through the establish¬
ment of the Industrial Develop¬
ment Bank, but there is still a
need for the other type of thing
and the lack of it is bound to be¬
come more and more noticeable."

taxation and

and

incorporated

Most of them fail. It
takes years
for an investment
dealer to build his reputation, and
each

on a graduated scale. Our
association should join with other
bodies in protesting this double

suggestions

businesses—

small

was

ready supplied by the owner and
his friends, the businessman, the investment. A combination of low
vances chiefly medium and longowner,
will find his additional interest rates and high corporation
term capital.
It should be noted that the In¬ capital. At that stage, even if an taxes has driven companies into
dustrial Development Bank in its underwriting—an issue of securi¬ senior financing where interest
ties—cannot be marketed, the in¬ charges
may be deducted from
annual report as at Sept. 30, 1947
vestment
dealer
will
put
the operating earnings before comput¬
discloses that credits up to $100,owner of that business in touch
000 in amount have been advanced
ing the corporate income tax.
with friends, wealthy clients who
A study of 709 business estab¬
to 284 firms for a total of $7,909,9G2. It reveals total credits as at may be interested. Is it necessary lishments by the Bank of Canada
to urge the members of this as¬
reveals that in 1946, taxes paid
Sept. 30, 1947 numbering 322 for
an
amount of $19,758,537.
The sociation to listen to the story of by these firms amounted to 45%
the small business owner? And, if of their net
bank reports that the largest num¬
profits contrasted with
ber of authorized credits have the future of the company appears 18% in the year 1936.
^

organizations, and the bank ad¬

concludes with the
following recommendations and

ploughed back year after year in

manage¬

ment, of the amount of capital al¬

that

total

This paper

dictated

economics
must

and

by
the

politics
same

was

than

reason

applied to their action
last Fall in adopting import re¬
strictions and excise taxes rather
than

reversing their former ac¬
returning our funds to
money fi¬ where they belong.
It is interesting to note that in
far repre¬

ing has advanced moderately.

The increase in new
agreements binding the provinces
the tax field vacated nancing by industry so
sents a minor fraction of its treby - the Dominion Government.

tion

and

1945

had

favorable balance

Volume

167

Number 4710

$222,000,000

of .securities

interflow

our

with

THE

and

change in

for

make

tne six months

COMMERCIAL

exchange policy

our

available

from

GAMMELL,

can

month the balance either way has
been negligible. If our funds to¬

thousands

day

to be allowed to find

were

sound

economic

level

that remains to be done is for

flow

funds

Canada

into

far

the

period. Under pres¬
conditions, such
a
balance

ent

would

and

industry

service
to

natural

our

the

would

and

come

help

place Canada
basis in
and

materially

comparatively few

the

meantime

venture

would

ital

Limited, Montreal.
HUGHES, J. O., A. E.

need

trial enterprise unshackled.

the

United

tax

have

structure

of5 a

come

Inc.,

L.,

Anderson

P.,

Sons,

Gairdner

D„

Limited,

Canada is a young and virile inflation—the next quarter cen¬
country with tremendous natural tury is ours—no country in the
resources awaiting development—
world can offer the same advan¬
We have only three other needs—
tages either for individual effort
a supply of venture
capital over
and -above what our own citizens and initiative or investment of
will supply

and which

capital,

•.

•';-.*r

(Continued from
Ltd.,

pany

Melady,

Sellers

Com¬

Pitfield

L.t

Winnipeg.

Wills,

W. A., Charles H. Burgess
&
Company, Toronto.
YOUNG, N. D., Dominion Securities Corpn.
Limited, Toronto.
,

A
large
journalists

BRENNAN,

A.,

Royal

Securities

ration

,limited, Winnipeg,! '
HOUSTON, W. M., Houston, Willoughby
& Company Ltd., Regina.
"
,

AUSTIN,

Nesbitt,

F.,

Ltd., Winnipeg.
„ J
MdCULLOCH, R. G., Osier, Hammond
Nanton, Limited, Winnipeg.
pany,

CENTRAL

.Toronto.

CASTLEDINE,

GERMAN,

Greenshields

CLARK,

Co.

G.,

N.,'' Dominion

COLLIER,

Limited, Toronto,/*!!
HOWARD, A. L., Anderson &

Company,

Collier,

K.,

Norris

COYNE.

:
-

EASTERN

;

son

-Montreal.

L. P., Geoffricn, Robert & GeInc., Montreal. .
-<! 1 - •

GELINAS,

■

Montreal.;

Ltd.,

■

DALY,

Royal

Corp.
-

DISTRICT/

rWinnipeg.

•

--.-.i.-

•

H.,

Limited,
jH. *

Corpn.. Limited,

Montreal.

Dattels

•

Com

ited,

Nesbitt,

Thomson

Limited, Montreal.

Com¬

Toronto.

-Limited,

Son Van¬
"

S.,

•

A. h'-M.
"

Kidder
;

Limited.

Vancouver,

A.,
Limited, Toronto.

Corpn.- Limited,

....

Ltd.,

Calgary.

•

G., L. G. Beaubien & Co. Lim¬

Inc., Montreal.
SIMPSON, D. G., Midland Securities Lim¬
ited, Toronto.

SKELLY,

A.,

D.
Montreal.

STANBURY,
ited,

Kidder

Co.,

N.,

Fomento

Rico, fiscal agents for
Government of Puerto Rico,

TINGLEY,
,

W.,

pany Limited,

Wood,

Gundy

Vancouver.

into

ors

taxes,

disregard of recognized
principles in their ef¬

to seek gain rather than se¬
curity of capital and income. This

results in investors

assuming haz¬

ards not normally associated with
the
term "investment."
Let
us

then

be careful to appreciate the
position of trusteeship we assume
when investors put their savings
in

hands.

our

Let

become

vocal about

justifiable margins and unreason¬
ably high taxes—raise the one and
lower the other.
Reasonable

The

Margin

Investment

forming

of Profit

Dealer

is per¬

indispensable function
country with great promise.
We cannot continue to perform this
function properly without a rea¬
sonable margin of profit; in other
words, without a living wage. If
the margin is reasonable we have
nothing to be ashamed of. It is

suming similar risks
margins.
In general
nothing
for
service
make our living out of
selling, all the time

The

loan

awarded

was

syn¬

themselves,
Co.

the i Guaranty

the

and

First

Trust

National Bank

of Boston, at a 2.95% interest rate.
Interested

banks

included

the

Chemical Bank and Trust Co., the
National City Bank and two addi¬
tional

Puerto
y

Rico
banks,
the
Ahorra and the Banco

Ponce.

The

announcement

charge

and

must

buying and
taking the

Peacetime taxes which

are

too

vocal; let

for reduced

fer/etc.
•

are

therefore

good position to become vocal.

Let's be

boldly fight

taxes, income, trans¬

■

do these

things and con¬
realistically to develop in

tinue

ourselves

and

our employees the
knowledge
and
skill
acquired through educational ef¬
forts and experience; if we refuse

necessary

but

interested

dirty dollars
display -a kqen
clean crisp
do all this with reli¬

all; times

interest

nice

the

if we
ability and dignity, we cannot
help enhancing the professional
ones;

direct

loan of the People of Puerto Rico

Basil Harris Dead

and does not carry a

pledge of the
government's credit, the unparal¬
leled

credit

history of the Gov¬
ernment of Puerto Rico, plus the
ever increasing economic
stability
of the Island, due to its industrial
program,
were
reflected in the
low interest cost bid for the sugar

crop."

Basil

Bonniwell pointed out, have
^defaulted or been delin¬

since Puerto Rico

came

under the

prior under Spanish Crown
rule.
Mr.'Bonniwell, who arrived
in New York June 1, will remain

Harris,

died

June

Pavilion,

York

New

for

additional

six weeks for the purpose of dis¬

cussing with banks, insurance and
investment bankers other financ¬

ing programs of the Government
Puerto Rico.

Mitchell & Per¬

shing,

120 Broadway, New York,
attorneys for the Puerto Rico

Government's

fiscal

agents,

Banco de Fomento.

the

Samuel

Co.,

Columbia-Presbyterian

and Commissioner of Customs

September, 1939, and he for¬

mulated

rine
the

plans for merchant ma¬
shipping in anticipation of
possible involvement of the

United
his

States

bers of the New York

change, *; will
/

and

admit
Bernard

Com-

partnership

July 1.

retirement

the

115

Stock Ex¬

Donald

Stein

war

before

July,
1940."
Among his many other activities,
it

noted

was

"Sun"

that

the

was

New

York

partner of

Phelps, Fenn & Co., investment
securities; a trustee of the Emi¬
grant Industrial Savings Bank and
the

Atlantic

Company,

Mutual

Insurance

director of the North¬
Company, Assur¬
Company of America, Cen¬
a

Insurance

ern

ance

tennial

Insurance

Company,

National Federation of American

Shipping, United Seamen's Serv¬
ice, American Merchant Marine
Institute

Arbitration

member

the

Association,
Shipping and

United

States

Chamber of Commerce Committee
on

mem¬

the

Lines,

Assistant Secretary of the Treas¬

Broadway, New York City,

in the Harkness

American Bureau of

Ralph E. Samuel Admits
Ralph

Medical Center. Named by Presi¬
dent Franklin
D.
Roosevelt as

years

•

Chairman

Board of the United States

ury

; vv
Insular

Government, its
municipalities, authorities, agen¬
cies
and
political subdivisions,

are

similar

status of the Investment Dealer.

says:

as¬

for

high tend to destroy the initiative
and the enterprise necessary for
development. We. are contribut¬
ing substantially to the develop¬
ment of Canada.

dicate headed by the Banco Populare de Puerto Rico, representing

indus¬

risk involved.

June 15, the consum¬
$6,000,000 crop loan
for the planting, cultivating and
harvesting of sugar cane for the
Land Authority of Puerto Rico.

another

name

Samuel
&

income

investment

Harbors and Shipping.

Jas. T. DeWitt Co. Formed
James

TANGUAY, Fernand, J. C. Boulet Limitee,

Securities

personal

Halifax.

Quebec.

•,

High

mation

Limited, Edmonton.

Dominion

Co. Lim¬

Stanbury &

STEWART, A. M. G., J. F. M. Stewart &
Company, Toronto.
STEWART, G. C., Royal Securities Cor¬
poration Limited, Toronto.
STYLES,
A.
D.,
Gairdner
& Company
Limited, Montreal.
SYDIE, J. E., Sydie, Sutherland & DrlscoU

Hamilton.

Banco

Puerto

the

ited, Montreal.
RYAN, Jos./Biggar & Crawford, Toronto.
SAVARD, J. E.,- Savard, Hodgson & Co.

Gairdnyj & Company

GALLAGHER.. T.'H.,

the

American flag in 1898, and for 250

RYAN G.

FRANCIS, F., Montreal Gazette, Montreal
FRASER, G. Lyall, Western City Company
GAIRDNER,

Bonniwell, Financial Di¬

quent in any of their obligations

ton

M.,
; V

never

Toronto.

Saint' John.

;

$6,000,000 Crop Loan

Hannaford,

Ltd., Montreal.

ROBINSON, C. S., Osier, Hammond & Nan¬

•

Co.,- Montreal.

Puerto Rico Obtains
D.

besides reducing the dealers' nor¬
mal margin, tend to drive invest¬

try giving similar service and

Mr.

McTaggart,

Gordon

•»

Ross & Co. Limited,

times

difficult

The

RHUDE, Forbes, Canadian Press, Toronto.
RICHARDSON, James, James Richardson
& Sons, Toronto.
/
RIDLEY, J. B., A. E. Ames & Co. Limited,

C.,

FITZPATRICK,

Chronicle," New York;
Rhude, Canadian "Press,"
Raymond Trigger, "Invest¬
ment Dealers' Digest," New York.

H. J., Osier & Hammond, Toronto.
RH3ND, J. A., Mills, Spence & Co. Limited,
Toronto.

FINDLEY, J. R., F. H. Deacon & Company

•

Corpn.

Toronto.
;
BkVES, G., Calvin, Bullock Limited, Mon¬

Co.

REID,

;

and

RATH. H. H., Thomson & Co., Montreal.

Toronto..■

Spence

A. E. Ames & Co. Limited,

Toronto.

RAMSAY,

Financial Times, Montreal
EVANS, F. O., McLeod, Young," Weir • &
Company Limited, Montreal.
FALKNER, J. A/ D., Wood, Gundy & Company Limited, Montreal.
/ V

Company,
•

for

W„ Canadian Alli¬
Ltd., Montreal.
Pitfield & Company

Bank

Donald

POPE, E. R„ Milner,

ERTL,

J' ■:

W. Jy Pemberton &
Limited, Vancouver.

Inc.,

Co.

E., Commercial & Financial

Corporation

Birks

H.,

PIPER, W. J.,
Montreal.

Montreal.

:t"

Securities

••

pany,

couver

Thistle, Judson

Montreal.
BELSHAW, J. A., Brawley, Cathers & Com¬

BORRIE,

R.;

Limited,

treal.

Mills,

F.,

jeopardized

Forbes

"While the loan is not

PAYN, P. R., W. C.
Limited, Montreal.

F./ International Bank for
Reconstruction & Development, New York
DYMENT, "W. A.,('Burns Bros. & Denton
Limited, Toronto.- v
• ;
/
DYMOND, A., Fairclough. & Company Lim-

BELANGER, Roger, Paul Gonthier & Com¬
pany

Toronto.

PARTRIDGE,

FISHER, F. C., Eastern Securities Company

G.^Cote

Burgess

Chronicle, New York.
NIXON,
S., Dominion Securities
Limited, Montreal.
ance

0,,v K.'C., Daly,

DUNSTAN,

Montreal.

MURPHY,

ited. Calgary.
.
•
DINGLE, D, B„ Wood, Gundy & Company
Limited, Toronto.
•
'V
DOWNES, W. L.^Kippen & Company In¬
corporated, Montreal.
?'
; :
<t..

Toronto.
•
•
BEAUBIEN, Jos. Jr., L. G. Beaubien & Co.
BEAUSOLEIL,

Charles H.

Company Limited, Toronto.
MORAN,
W.,
Greenshields &
Montreal.
MUDGE,
Louis, International

Mail"; James
Post"; Ronald
McEachern, "Financial Post"; H.
E. Murphy, "The Commercial and

Credito

Limited

M. C.f Bankers Bond Corporation
Limited, Toronto. "
•
J. M.f Carlile & McCarthy Lim-

Securities

Dominion
Kitchener.
N.. ; Dominion

H.,

Company,

MULQUEEN,

•

H. S„ McLeod; Young, Weir &
Company Limited,-Toronto:
: •
•
BAKER, R. D., James Richardson & Sons,

.Limited,

Crawford,

DILLON.

Among .those attending were:
BACKUS,

BAWDEN,

DEANS,

Corpn.

McTaggart,. Toronto.

DEAN.

•

BARTLETT,

Hammond

•

Biggar

DAWSON, Dudley, Dudley, Dawson Limited,

Securities
rV

FISHER, 'F. C. '(Chairman), Eastern Se¬
curities Co. Ltdi, Saint John, v
HAMM,. George P., Nesbitt, Thomson &
Co.
Ltd., Saint John.
1
LANNON, Joseph B„ W. C. Pitfield & Co.
,Ltd., Saint John.-;'v>
HEBB, John R. C., Dominion Securities
iCorp. Ltd., Halifax.
WHITE, W. T., G. E. Leslie & Co., Halifax.

■

J.v K.,

pany/ Kitchener,

pany

MARITIME

Osier,

Reconstruction & Development, New York.

DATTELS,

•

C. J., Pemberton & Son Vancouver
Limited, Vancouver. -v7

•

R.,

Limited, Montreal.
!

Deacon & Company,

F. H.
'

Toronto.

Company
~-VCo. Lim-

'ited,-Montreal.
: '
J.:c;, J. c: Rogers & Company
•

L.,

ROGERS,

HUGHES,

Co.,

Montreal.

Toronto "Globe and

•

DALE,

W. C. Pitfield
Limited, Montreal ■■>-■'.
KlMBER, S. B., A. E. Ames

MILLS, L. G., Mills, Spence & Co. Limited,
Toronto.
/
*
*
MOORE, T. F., McLeod, Young, Weir &

CUNNINGTON, G. N„ Biggar & Crawford

GINGRAS, <X, Rene-T. Leclerc, Inc., iMonD.,

Leslie

Toronto.

CREIGHTON, D, iB., Nesbitt, Thomson &
Company Limited, Montreal.
CROOKSTON, J; I., Nesbitt, Thomson &
•l
Company Limited, Toronto,
c
CRYSDALE, J. P., Gairdner & Company
Limited, Toronto.

HUNT,';;a.

FUGERE, P., Hamel, Fugere & Cie, Limitee,
"Quebec.
•
/
•-

linas,

McLENNAN, A. W., R. A. Daly Co. Limited,

Toronto.

Montreal.
Greenshields & Co. Inc.,

P.,

CRAWFORD,

Nesbitt, Thom¬

Company Limited,

KILBURN,

G.,

McILWRAITH,
•

Toronto.

DISTRICT

(Chairman),

Cathers

McFARLANE, W. E., Mead & Co. Limited,

COPLAND, R. O., Oldfield, Kirby & Gard¬
ner
Limited, Winnipeg.
CORBETT, Di R., Royal Securities Corpo¬
ration Ltd., Toronto.
COX,
Murray, Greenshields & Co. Inc.,
Montreal.
T-'*

E.f Isard, Robertson & Co.
London.
MASSEY. A. B., Mills, Spence & Co., Lim¬
ited, Toronto,
MOORE, T. P., McLeod, Young, Weir &
-Company, Toronto.
C.

■Limited,

DEAN,

Julien,

Montreal.

Toronto.

ISARD,

Toronto.
G. E. A., G.

Ltd., Winnipeg.
McCUTCHEON, C. L„ Bankers Bond Cor¬
poration Limited, Toronto.
MCDONNELL,
E. J.,
Intercity Securities
Corporation Ltd., Toronto.

Investment
Bankers
Association of America, Chicago.
COLVEY, D., Dow Jones News Service,
*:

Interprovincial

Brawley,

C.,

announced

•

J. L., Credit
Montreal.

McCULLOCH,

& Co.

Quinlan Limited, Montreal.

COLLINS,

-Corpn.

limited,

Montreal.

Limited,

H. E.,

Cochran, Murray
Limited, Toronto.
'
■

Securities

Co.

Montreal.

McCAIN,

BAWDEN,

MacTier,, &

Nanton

COCHRAN,

GUNN, N. H„ Bell, Guoinlock & Company
-Limited, Toronto.
•
■
HARRIS. W. C., W. C. Harris & Co. Lim¬
ited, Toronto.
"''
'/■:/

A.,

Company,

Dealers

Bullock

McALPINE,

•"

tion:
Douglas Colvey, Canadian
Dow-Jones, Montreal; E. C. Ertl,
"The Financial Times,"
Montreal;
Frank
Francis,
Montreal
"Ga¬
zette'V W. B. Gill,- "Wall Street
Journal";
Wellington
Jeffers,

rector

MACKENZIE, A. H. B., Mackenzie & King¬
man, Montreal.
'

Toronto.

Calvin,

E.,

Montreal.

Limitee,

Montreal.

(

/ ■ '■'■.>

LEVESQUE,

Co. Limited,

Investment

Canada,

••

Montreal.
'

Castledine

„

i' Association

•Inc., Ottawa.
■

Toronto.

Barry,

S.,

CHRISTIE, J. H., R. A. Daly

CORBETT, D. R., Royal Securities Corp.,
Toronto.

LEDDY,

■

LEDOUX, J. F., James Richardson & Sons,

Toronto.

GUNDY, C. L., Wood, Gundy & Company
Limited, Toronto.
Limited,

LANE, S.
Limited,

A.,
Investment DealersCanada, -Toronto.

Erne,
Credit
Interprovincial
Montreal.
;•
F. H., Investment Distributors

Limitee,

Company Ltd., Ottawa.
CHOAT, J. E., James Richardson & Sons,

A. Daly Co. Limited,
..

/'/j-v.'.

Montreal.

DISTRICT

(Chairman), A. E. Ames*&
Limited, Toronto.

CHRISTIE, J. H., R.

Quebec,

conven¬

Moncton.

LACROIX,

CARTAN, A. J., Harrison & Company Lim
ited, Toronto,
CASGRAIN, R., Casgrain & Co. Limited,

RIDLEY, J. "B.
Co.

Limited,

BOWMAN, A. C., McLean-Hunter Publish
ing Company, Toronto.

Thomson. & Com-

financial

Financial
J.
of

KNUBLEY, P. K., Bell, Gouinlock & Co.
Limited, Montreal.
LABELLE,
Ulric,
J.
C.
Boulet
Limitee,

BULGIN, J. D., Dominion Securities Corpn.
Limited, Winnipeg.
BULL, R. O., Gairdner & Company Lim¬
ited, Toronto.

Corpn.

Inc.,

Limited,

KIPPEN, E.. D. B., Kippen & Company
Incorporated, Montreal.
KIRBY, W. J., Eastern Securities Company

Limited, Montreal.

Co.

of
the

Joyce, /"Financial

Montreal.

J., F. J. Brennan & Com¬
pany Limited,
Saint John.
BROWN, J. C., Canadian Alliance Corpo¬

BULGIN, J. D., Dominion Securities Corpn.
Ltd., Winnipeg.
.
»
.
' •

Ames

number
covered

•

S., A. E.

■■

Greenshields

P.,

Montreal.

Limitee,

Securities

■-J

Bickle

investment fraternity may there¬

fort

Guildhall

Montreal.

"Toronto.

Company

London.

KIMBER,

Quebec.

KNIGHT, D. N., Wood,"Gundy & Company
Limited, Winnipeg.

BENHAM,

Boulet

Canada,

pany, .Sarnia.
WOOD, J. D„ A. E. Ames & Co. Limited,

JOYCE, J. H„ Financial Post," Toronto.

Association

J.'

WHITE, W. T., G. E. Leslie & Co., Halifax.
WILKINS, D. J., Fry & Company, Toronto.
WILSON, Roger, Goodwin Harris & Com¬

Lim¬

•'

.■•:

KINGSMILL,

C.,

Bank

Montreal.

Limited,

Company

Co.,
Toronto.
•■,./
JONES, R. M., Eastern Securities Company
Limited, Charlottetown.- r

22)

page

BOULET,

dev.,

WOODCOCK,

onto.

JENNISON,

Limited,

W.;E.,

Midland Securities Lim-

improving

(Continued from page 22)
comes too dependent on specula¬
tive profits and not distribution
margins.
The reputation of the

stress.

Montreal.

KILBURN,

GOWER,

Co.

Dealers

WELSFORD,

C.
E.,
Isard, Robertson & Co.
Limited, London. '
JEFFERS, Wellington, Globe & Mail, Tor¬

Meeting June 12-16; Elects Ryan Pres.

WELDON, J. A., W. C. Pitfield & Company
Limited, Montreal.
•
'

KEELY, C.. P., Nesbitt, Thomson & Com¬
pany Limited, Toronto.
KENNEDY,
E. 'M.,
Midland
Securities

Annual

Securities Corpn.

Gouinlock

WELDON, D. B.,
ietd, London.

Company,

Co.

Ltd., Toronto.

WHEATLEY, "James,

Co.

Richardson

Of Investment

WEBSTER, L. P., Beatty, Webster & Com¬
pany Limited, Toronto.

ISARD,

Greenshileds
James

WEBB, G. W. M., Bell,
Limited, Montreal.

...

can

J.,

WARD, D. H., Dominion
Limited, Toronto.

New

Ames

Vancouver.

poration

London.

HUNT,

over-

HENRI,

Montreal.

WALL, Walter A., Intercity Securities Cor¬

HUGHES, J. R., Royal Securities Corpora¬
tion Limited, Montreal.
'.V
A

years

depression

ited.

Canada

—

for

fear

HOWARD,

Professional Status

>•

TURGEON,

Toronto.

States—a

immigration policy—and

revised

indus¬

and

from

sound

Toronto.

TRUDEAU, R. N., Savard, Hodgson & Co.
Inc., Montreal.

York.

HOWARD,

years,

J.( 3835 Van Horne Avenue,

VIDRICAIRE,

ration Limited, Montreal.
HOW, J. B., A. E. Ames & Co. Inc.,

things—a real¬

Raymond, Investment Dealers'
Digest,. New York.
TROYER, J. T., Thomson & McKinnon,

Montreal.
A. S., Royal

istic exchange rate and free move¬
ment of securities—a flow of cap¬

the

lifted

earnings

(2767)

TRIGGER,

GUNDY, C. L., Wood, Gundy & Company
Limited, Toronto.
GUNN, N. H., Bell, Gouinlock & Co. Lim¬
ited, Toronto.
HAMMOND, S. B., Royal Securities Corpo¬

capital.

With these four

present
embargoes, restrictions and excise

taxes

industrial

TORRES,

Dealers'

GRIFFIN, H. S., Wood, Gundy & Company
Limited, Halifax.

would

degree double

enterprise and the investment of

years

self-sufficient

which

and

some

Canada,

Ottawa.

pany,

middle in¬

Securities Corpo¬
ration Limited, Montreal. •
'
GOUINLOCK, R. W., Bell, Gouinlock &
Co. Limited, Toronto.
GRAHAM, C. T., Waterloo Bond Corpora¬
tion, Kitchener.
GRAHAM, John, John Graham & Com¬

and dividends and thus encourage

than

taxation

resources

investment

brackets

eliminate

purposes and the resultant devel¬

opment

heavy burden

come

large degree pay for
imports for capital expansion

our

GORDON,

our

tax structure which would relieve

former

any

corporee,

adopt a sane and
aggressive policy of selection and
encouragement — and a realistic

exceeding

Bank

Investment

L.,

Gelinas, Inc., Montreal.
GILL, W. B., Wall Street Journal, Toronto.
GINGRAS, Gerard, Rene-T. Leclerc, In-

Government to

...investment

Association of Canada, Montreal.
GEE, H. W., Canadian Alliance Corporation
Limited, Montreal.
GELINAS, Louis P., Geoffrion, Robert &

pro¬

per year of carefully
immigrants — the immi¬
grants are ready and waiting—all

it is not difficult to
that there would be a

imagine

our

selected

U. S. funds,
favorable

increase

duction and internal consumption.
This country could absorb many

relative

G.,

CHRONICLE

Montreal.

GASSARD,

neighbors to the south—additional

population

FINANCIAL

Ottawa.

good

our

ending June, 1946/
a balance
in our favor of $141.5
million, but since the dollar re¬
turned to par in the following

gaging
from

DeWitt &
a

offices

Co. is

securities
at

112

Street, New York City.

en¬

business

East

19th

COMMERCIAL

THE

(2768)

FINANCIAL

CHRONICLE
erosion

tematic

"Dollars and Sense"
controversial,

(Continued from page 4)
stone of the kind

of government

that

foundation of

only

the

sound fiscal policy

is it possible for a free school
free.
system to thrive, or for a demo¬
The answer is, when they become
cratic, representative form of gov¬
informed through some nation¬
ernment to endure. Young
wide plan of economic education.
should be shown that they have
Or when, if it is not too late, they,
a personal, vital interest in that
made to

makes

that

and keeps

men

feel the

themselves, are

tragedy and very kind of government, lne
situation
challenges the
become sorely conscious of the
in^e|"
ligent, cooperative action of edu¬
fact that they, themselves,
are
cation and banking. Clearly, their
paying the bills for their alleged
interests, like ail wholesome in¬
security.
And that educational
terests, are identical.
program is somebody's responsi¬
I fear that most of the young
bility. Whose? Ours! The unoffi¬
cial
custodians
of
the
hard- people in this generation coming
out of the halls of learning into
earned savings of our depositors.
burden

full

the

world

the

there is a
being waged, fraught with

contest

vital consequences than any

time, between a
sound medium of exchange and
in

other

not

been

given

our

printing
press
currency.
The
printing press is in the lead, as it
always been when Federal
spending is out of control.
Someone
has
said
that "the

has

I interviewed many
graduates—boys and girls most of
whom admitted they had
education having to do with the
importance of sound money, one
of the principal pillars of a repre¬
sentative republic.
jpProvided with sound economic

mankind." And what a contribu¬
tion

in America have made to

inglorious retreat!
Daniel Webster said in 1834: "I
admonish every industrious
laborer in this country to be on
that

guard against those who would
perpetrate against them a double
fraud—a fraud to cheat them out
of their earnings

facts, and cannot be misled, ter¬
rorized, or won over to new-!
sounding philosophies and creeds,
which, in the face of all experi¬
ence,
stand utterly condemned
and

understandings.
above all others
who has the deepest interest in
sound currency, and who suffers
most by mischievous legislation,
is the man who earns his daily

Dictatorship

by his daily toil. A vast
majority of us live by industry.
"The constitution was made to pro¬

industry, to give it both

tect this

encouragement and security; but
security."
On the same subject, the im¬
mortal
and
stalwart
Souther#
above all,

democrat, Thomas Jefferson, said:
"To

must not let our leaders load

with

independence,

preserve. our

make
omy

perpetual debt. We must
election between econ¬

our

and liberty, or profusion and

servitude."
At

this

these

let

pause

principles. They have
in our time, and long before the
advent of World War II, debased
our money system by substituting
an irredeemable, politically man¬
aged, printing press currency, the
springboard to police government.
very

It is

rare

indeed when

even men

the watchtower seem able

recognize this approaching force
of disintegration. And as for the
masses, they seem never to haVe
been able to identify the enemy
that comes to destroy their polit¬

ical, econorpic and social liberty.
What

Should

Bankers Do?

what' powers do the
bankers possess to make impres¬
sive these demonstrated historical
axioms?

How

must

we
proceed
public mind
importance
of sound
in a government of free

to impress upon the

vital

money

men?

Have

not

the

schools

responsibility to teach this all im¬
portant concept? It is the duty of
the bankers, and this includes in¬
surance executives, who are the
custodians of the savings of mil¬
lions of thrifty citizens, to dis¬
seminate

education

dealing with
question. Every boy
girl in every school
and in every college in this great,
free nation, should be required to
complete a course and gain a
clear
understanding • respecting
solvency in government. It is
the

money

and

every

axiomatic,

and

therefore

civiliza¬

Product

We know, and it is a
all history, that back

and
the

teaching
of each
ultimate uprising of
people looms some gigantic
every

economic

terror.

wherever

the

people

has

maintain

Whenever

life-blood

been

men

that

demon

civilization

counts

beyond the
waters, or even cite the teachings
of history, to be convinced that
right now, in our own land, in
this reputed sanctuary of freedom
and liberty, we must not, dare not
continue
to
tamper
with
the
deadly explosive of excessive na¬
debt

and

resultant

the

which has
blown one civilization, one culture
after another, into oblivion.
Back, then, to our question. Do
press

money

wlPj°jSess P°wer °f discernment?
What do present movements mean
Do

us?

realize

what

to everything we
cherish under this Republic if we
going

mean

fail to reduce the national debt at

least

three

five

bililon

per

sucked

non-

Byrd of Virginia,

said

debt

ter
of

what

name

it bears,

the, day

reckoning is at hand.
The

who

men

controlled

the

destiny of Europe were not selfelected. They were invited. They
came

into

power

because of

the

breakdown of solvent government.

They

receivers for nations
bankrupt. Possessed of>, a
superior
power
of
persuasion,
coupled
with
native
political
sagacity and a burning passion for
power, these men recognized that
their day had arrived. They wit¬
nessed the helplessness of those
in power. They saw before them
the beckoning, vacated seats of
power made so by the breakdown
of solvent governments. Coming
out
of
comparative
obscurity,
were

after

debased

system

money

had

exacted its tragic toll, these
dictators on horseback captured
the

imagination of the people and

rode to power amid the applause
of the unsuspecting and apathetic

That

masses.

is how

all

hap¬

pened "Over There."
But

what

possible?
debased

made

their

Economic
currency,
the

was

advent

exhaustion,

ruthless taxa¬
terror. It

was

the demon of debt, deficit spend¬

ing,

disregard for solvency.

Inflation

does

not

by
legislative procla¬
mation—it develops slowly, as it
always
does,
until
the
final

presidential

come

stages. Then it

assumes

the pro¬

portions

of a prairie fire, eonsuming all the substance of the
people.- Then a despoiled nation.
Then the emergency; then chaos;
then the dictator; then the total
national

extermination.

could

logically

be argued that incon¬
vertible, printing press, political
money

one
of the
World War II.

was

causes of

great

our

was

peace,

structure- of

dented

Unless

amount.

unprece¬
now

sub¬

stantially reduced, this debt struc¬
ture will soon pass the stage of
safety and solvency, and must, of
its own weight, collapse, leaving
among its ruins 150 years of free
agency, a system that gave to the
world a government characterized
by Lincoln as "of the people, by

People."
overdrawn,

T#peop^e' anc* ^0r
If that picture is

then all history is a lie.

in power, to sustain

topheavy government created by
printing press, "senseless" money
to purchase the electorate, no mat¬

and it

ume

again, was
entry into
responsible,
for rearing a

upon

before

long

the war,

the

here

and

the

.Even

state.

against them, And why?

Because

it can't

happen here.

that

instrument

Assaults
But

nation

power

the Constitution

all

had that Magna

sooner

Charta, with its priceless Bill of
Rights, been placed in our hands,
than it became immediately an
object of assault. These attacks
have never ceased. They have in¬
creased in insolence and intensity
We need not recite the happen¬
ings of.v recent years. They are
grimly familiar to us in this
group. But — once again we come
back to the question.
How can
they be made clear to the man in
the street, to the middle-class in¬
dividual, to the average citizen
who casts the controlling vote9
Who dares contend that we', in
our
day, have not shown our¬
selves
to
be
equally gullible,
equally willing to be betrayed
equally willing to be sold upon
the block, like those who have
preceded us?
It can safely be maintained that
no other country on
earth could
have so ruthlessly violated sound
p«. inciples
of economics as we
without

have

suffering complete
and absolute wreckage. Thanks to
our
endless and apparently in¬
exhaustible resources, we have
been able, up to date, to win the
most devastating war in all time
remain

and

solvent.:

The

best

why they
attempted, through the Constitu¬
tion, to map out the safe way to
pursue, to establish and to per¬

period has ever attempted
the history of civilization.
any

much

as our
present
alarms us, it is

debtedness

apprehension
overwhelms

the

us.

of those

otic Americans

that

trend
are

in¬
our

not

un¬

stalwart, patri¬

—

Democrats and

will

relations

for

into

wilderness of

confusion, where, in

our

ness

add

one

helpless¬

and ignorance, we

list of

defunct

name

too, would
to the long

civilizations.

•

£lm°st

against

their

better

judgment, they provided for gen¬
eral
suffrage,
for they hoped
against hope that in some manner
mass

succeed, but they will

unless an aroused

not

public opinion

to their aid.

comes

There is

am¬

ple evidence that it is most dif¬
regain control of public
spending; and public spending is

ficult to

Washington's Farewell Address,
the
admonitions
of
Madison,
Harmiton, Jefferson, were perhaps
little understood or appreciated at
the
time, but what remarkable
reading for us in our generation!
How they bristle with wisdom!

education would be made

continuing,
accomplished
fact.
They trembled as they anticipated
the
day when the vote of the
majority could be bought with
political currency in exchange, for
alleged economic social security
They recognized that only when
people are informed, when they
discern, are they able to exercise

out of control.

now

Just

have

men

met

gloomy picture of what must in¬
evitably follow a continuation of
the
mania
of
incurring debts,
borrowing and perpetuating defi¬
cits. They were called ugly names,
and were looked upon as

howlers.
we

Strange, is it

calamity

that
experience the same reaction
in our day, warn against
not,

when we,

continuation

the

stimulated

into

™J Tu control»"'that they sur¬
themselves with hungry

said:

be shown to youth, to

people, irrespective of color,
class, that they will all be made'

and

taken from the

pockets of the people, by

sys¬

crime; that they

unite to restore and

now

perpetuate

fiscal

sound

maintain

safe,

our

policy

constitu*

tional balances of power?
We
bankers, with our
.

range

speak

the

these

contacts,

can

language

groups,

understand

that

wide

not

each

they

will
government

long remain free with a man*
aged, printing press currency sys¬
tem;
that
the * only source
of
can

wealth

is with the people them*
selves, from services and produc¬
tion;
that
government
support
comes entirely from the
earnings,,
production, and savings of the*
people; and that not one cent,
originates
in
the: government?"
How readily will the millions of
savings
depositors,
millions
of

holders of life insurance policies,,
with voting control, rally to such,
a call for united
action, once they
convinced that the leadership^
crusade is informed and.

are

this

passionately and patriotically de¬
voted to public interest!
Men will not struggle to savemoney
if they " know that they
are
ultimately to be denied the-

fruits of their labors. No trick of'
that

er?
to

be able to destroy-

ever

human

trait.

Lack

That

fact

Education:

The unscrupulous politician,
knows that we lack education;:
■

that

have grown self-centered,
group-conscious; that we areno longer historically minded. Weimagine that history began with
us. We are the "Little Red Riding:
Hoods" bringing our hard-earned.
we

and

substance to

our

dear, old "Gov¬

ernment

Grandma," who turns out;
hungry wolf that devours;
not
only
our
substance,
but:
threatens our very lives and for¬
to be

tunes.
It

■;

ought to be burned into the*

consciousness of every citizen that,
the first line of defense in a free:

country is

balanced budget onl
base.7..:-;
Our national debt in this day of
peace
is $257 billion. With the1
war won, let us resolve to win the*
a

sound money

battle to

save

the dollar. That dol¬

opportunity

k((^ t°° late?too weak
John Rustgard
If we are

today

handle

should
weaker

the

destiny must not become -at
post-war casualty, lost through*
political action.
Let us dismiss any gay opti¬
mism. The time calls for action—

situation

handled,

tomorrow

and

day still weaker. We

shall

the

are

giving

action,

speedy

intelligent

action,,

determined action. It calls for

ganized
still

action,

while

possible; before

or¬

is-

action

too, arerobbed of our weapons;
before*
we lockstep under the whip of a*
despotic " government that
may
continue to

we,

sing mock praises tou

defunct Constitution.

The ternu

"democracy" will be maintained,,
but

How then may the masses, our
fellow citizens, be won over and

hangers-on; that they build

ever-increasing,
tax-con¬
army
of servile public
employees; that by means of lav-

purchasing

of its money is destroyed?

all must

v'.aTv

sound money.:

cernment to seize this

suming

the

to suffer for this

debasing

Germany, Italy,

will there be in any

nor

where

lar of

today are meeting,
throughout the
centuries.:- In
other
days there
were people who dared stand up
and paint
to their fellows the
so

action, so that
7? Y- ?g PrivileSe wisely and they, the victims of such a pro¬
effectively in their own interest gram, will act in the interest of
and for the perpetuation of their their own
security and their own
?w? j^Shts. They knew of men's personal liberty? Who should be
more willing than we to under¬
P+uWer; that' once en¬
trenched, they reluctantly yield take the task? Who should possess
their positions; that they create more
courage,
or
more
deter¬
emergencies to perpetuate them- mination, or more power of dis¬

the

there

known to those in power.

for the

would lead

human

that

has been able to stand up

freely of their
blood and treasure. They knew
that any departure from that safe
charted highway of sound money

petuate the principles of govern¬

told

sub*

benevo*

logic will

Republicans — in the Congress of
the United States, who are at this
very moment fighting against in¬
surmountable barriers, to restore
sound
money,
and thus insure
solvency. Their efforts seem, at
the moment, to be meeting some
success.
I hope
and1 pray they

and

proof that the American pattern
of government is sound, is that it

mindful

That is

they gave

Japan,

it not

unions in

Can it not

fall of nations.

ment

organizations

were no

human

liberty, the Constitution.

which

Can

labor

unprece¬

will

who

lence?

of discernment

power

gave

they were historically
minded. They were close students
of world affairs. They knew what
had brought about the rise and

say

con*

vitals."

upon government

Fathers

aware.of these dangers and
warned

their

they

dented

those

even

sisting

v years past under the greatest orgy
of spending that any government

Founding

round

Loss of confidence in its money,

which, in the final analysis is in¬
flation, is the greatest tragedy
that can happen to
any civilized

that

our

wife,
to
the
educator,
to ' the
churchman, to the farmer, to the
vast army
of honest workmen,

Out of the wealth of their wisdom
and

among its victims.
But need we look

tion—that

Really,

the

and

gone

to
observe how many of us have
been
continuously conscious of
the methodical, deliberate manner
in which politicians have
done
their
destructive
work- against
point,

for the

cause

National Insolvency

them out of their

bread

the

of nations

tions.

by first cheating

"The very man

branded

collapse

vulture

in the street, to the merchant, to
the manufacturer, to the house*

liberal princi¬
education, citizens, old and young, year, and discard for good, deficit
ples throughout the world is a
are no longer deceived by catchfinancing?
consequence of the decay of the
phrases and glowing assurances,
money
and credit systems that
Discredited New Deal Philosophy
all intended to frighten or ap¬
gave
the nineteenth century a
discredited
philosophy,
pease. They are guided solely by
unique advantage in the annals of
which Senator
present retreat of

stantly eating out

can

tional

concern,

and

all be made to relinquish their
let us say, it must not
time-honored, independent pre¬
happen here! Then let us proceed
to make that declaration a living rogatives in favor of an ambitious
central government. Those men
reality by restoring sound money
had seen how human nature oper¬
and
recapturing the control of
Federal spending at the earliest ates; how easily men can be de¬
possible moment, which will be spoiled and sold down the river
the only guarantee against that how readily they can be betrayed'

printing

shelter

public

Rather,

necessary

vitally important education
to understand the im¬
port and significance
°^lls!;orJ??
and economic events. To justify

the

treasury, individuals, states,
their political subdivisions,

Can it not be shown to the man

the

Contest for Sound Money
At this very moment

have

Thursday, June 24, 1948

its

substance

will

have

de¬

parted. What to do? We must map*
out

our

course.

We must select

few fundamentals

build. What

are

a?,

which tG»

they?

should be stated briefly::

V; They

upon

Fundamentals of Fiscal Policy

Keep the budget in balance and
reduce

the

national

debt

by not

less than $3 billion per year.

Strip all Federal agencies, ir¬
respective of name or description,
of the power to create obligations
for any purpose, or under any cir¬

cumstances, except by direct Con¬

gressional sanction.
'

Call upon Congress to
the

one

contract

function

exclusive authority to

public indebtedness—the

Volume 167

only

Number 4710

THE

authorized to determine

one

COMMERCIAL

relationship that there is between

what money is needed to meet the

the

current

and inflation.

and

expenses

anticipate

government
obliga¬

future

National Labor Relations Act

Every time a strike
and higher wages are

called

tions; to be the only borrowing or
bonding Federal agency, as pre¬

granted,

one

towards

inflation.

scribed

mean

step

is taken

Higher

justly and constructively,
but not to participate in the mani¬
fold

affairs

transactions

and

business.

position

once

independent

commonwealths, supporting their
own
enterprises,: providing
for
their

worthy ones in need,
and remaining safely within their
own

income.

own

Re-create

tax-conscious elec¬

torate.

This

torate,

now

elec¬

tax-conscious

out
of
existence in payment for votes—
11,000,000 of them. A tragedy! Not
until
th&v self-reliant
army
of
America's

legislated

best

holding
are taxed to meet
the
expenses
of
a
spendthrift
government, will the survival of
our free country be assured. That
citizens,

voting control,

this

government is worth saving,

all decent citizens will

it, all must

save

admit. To

for its pre¬

pay

servation. Those who

are

sessed

it,

perpetuate

not

as¬

not

are

conscious of its priceless worth.
of

restoration

honest,

tarian
vious

all

solvent,

ment

keys

humani¬
so ob¬

and

government,
as

these

seems

require neither
defense.

com¬

But

perhaps
point is
necessary. It has to do with re¬
nor

statement

one

lief.

Let

this

citizen

naive

enough to believe that a change
of
government
will
solve that
problem overnight, because the
technique of capitalizing the re¬
lief vote has been so perfected,
and its vote-getting efficiency so
clearly established, that politicians
of the future, if left unhampered,
will be disposed to continue the
tricks and ruses employed by the
politicians of the present. Our
worthy needy must be taken care

of, but not corrupted.
the

outset

know

must

that the destruction of savings and
the

starvation of

production,
ever-increasing
government
doles and deficits,
will mean ultimately the loss of
brought

prices,

virus

inflation

moves

progressively to the uncontrolled
Labor's contribution to
the

was

not survive

tion

winning

matchless perfor¬
The American dollar will

war

without the

of labor

and

coopera¬

management.

You and I know

how

vital

en¬

listed dollars

were in
winning the
how they made possible the
planes, the tanks, the subs, the
destroyers. Men, materials, and
money saw us through the crisis,
and only sound money will now
keep us from chaos. Now that the
Ship of State is in the home har¬

war,

bor.

contemplate
post-war
problems, she must be anchored
to honest American money.
With 85 million Americans

ing

billions of the

bonds

own¬

the

United

States, certainly the gov¬
owes
it
to
its
people
buy its bonds, to
do everything it can to avoid un¬
necessarily increasing the total
ernment

cost of

government, now that the
is won, and not further de¬

war

the

debt

down

dollar; to balance the
budget, and to keep the ultimate
can

which

amount

be met without

destroying the

value of the dollar, and the value
of the savings of the people.
is the

duty of all good citi¬

to sound the alarm that

zens

when

the

balance,

only

budget is brought into
and the national debt

reduced, will the American dollar
have

insurance

against becoming
a post-war
casualty, with all that
this tragedy portends.
It must be
made plain to the man on the
street, the worthy people on re¬
lief, the aged, the hopeful, trusting
beneficiaries of Social Security,
the boys who have been on the
firing line, and owners also of
government life insurance in the

billions, what awaits them if
elected

representatives

our

fail

stop the creeping paralysis of in¬
flation

power

Administration

its

destroying the pur¬
of this dollar.

now

chasing

promises

confidence the

and

can

violate

preserve

people reposed in

it, when they called it into

serv¬

politics, deceives the people,, it
betrays its sacred trust. No higher
trust was ever imposed upon any
government than the duty to keep
faith with the people. This is a

And why?

cans.

the

needy

the
end.

the

once

for

care

capacity

saving
people
of
reached the dead

thrifty,

America

Because govern¬

continue

has

money.

sacred
the

N. Y.

Municipal Club
Outing for June 25
250

the

Municipal

New York

the

and

guests
Club of

Bond

expected to attend

are

Club's

members

15th

annual

field

day

Sleepy - Hollow
Scarborough - on

Country
Club,
- Hudson,
N. Y., on Friday, June 25, 1948.
Out-of-town guests will include
Presidents

the

the Municipal
Boston, Philadel¬
phia and Chicago.

Bond

Clubs

Sports

and

entertainment

will

be the order of the day, with one
of the features being a golf tour¬

nament.
to

Prizes

golfers

will

for

Low

awarded

Gross

and

Runner-up

(Member), Low Net
Runner-up (Member), Low
Gross
and
Runner-up
(Guest),
Kickers'
Handicap, "Longest
Drive" (on a selected hole), and
"Nearest-the-pin" (on a selected
hole). Non-golfers also will have
an
opportunity to win prizes by
playing tennis, softball and horse¬
shoes.
Excellent swimming pool
facilities will be offered through¬
out the day to cool off the hard
playing municipal bond men.
Special
awards
will
include
1949 Mercury DeLuxe Sedan; a
and

General

Amelia

laws

that

have

can

luncheon will

members

and

Angeles Bond Club General Motors as
Field Day Big Success A Market Forecaster
LOS

ANGELES, CALIF.

The

—

first annual field day of the Bond
Club of Los Angeles, held at the
Bel-Air
nounced

Country Club, was pro¬
a huge success by the 250

members

and

associate

members

their

be held

at the

guests at

Main Club House.

All prizes will be awarded at the

dinner.

Fitzpatrick, Phelps,
Fenn & Co., is Field Day Commit¬
tee Chairman, and Roald A. Mor¬
ton, The Blue List, and George R.
Waldmann, Mercantile Commerce
Bank
&
Trust
Co.,
are
SubChairmen.

Coincident with the Field Day,

Municipal

Club

Bond

will

hold its annual meeting and elec¬
tion of officers.
;
,

ordered

Donald

winner,
Miller
W.

Fred

The

Securities

Commission

and

has;

those

short

one.

low

high

General

31,

1938.

Nov.

Co.

Moulton,

less than

but merely

Robinson,

Elwood J.
Robinson
Advertising
Agency;
Prizes and Trophies, Jo M. French,
Blyth & Co., Inc.; Baseball, Ste¬
vens
Manning, Paine, Webber,
Jackson
&
Curtis; Horseshoes:
Warren H. Crowell,
Crowell, Wee¬
don
&
Co.;
Entertainment, F.
Stuart

Roussel, First California
Co.; Tennis. Curtis H. Bingham,
Bingham* Walter & Hurry; Spe¬
cialty,
Clifford
E.
Poindexter,
Turner-Poindexter

Co.;
and
Dinner, Charles E. Driver, Blyth
& Co., emeritus.
y,

1938

gratifying as at other
follower of this system
bought

when

and sold

the

German

victories,

minated

April

they govern and escape re¬ James Elliott of 50 Broad
Street,
justice. God is slow to New
York, with fraud in the sale
those who betray their of
mining stock and has ordered
brother. "Thou shalt not bear false
a hearing in Washington on July
witness
against thy neighbor," 12 to determine whether his
regis¬
came from
Sinai, and what false tration as a broker-dealer should
witness could be greater against
be revoked.
your neighbor than to take from
The SEC alleges sales of the
him his substance under false pre¬
stock;
without
registration
of
tense?
•: * \
VI .V* :X
■ • V
American Silver Mining Co.
Ac¬

Reestablish Gold Standard

;
1

the

Reestablish

Gold
an

standard.
gift to the world from

all-wise

Creator.

substitute.

There

^Without it

could

There

will

not

be.

base for national

and international

zation

gold

not

exchange, civili¬
have
emerged

from its barter period of the Dark

the

than

four .months

its low of

recorded

stream of sound money. No hon¬
est** American

his

nose

The

will

ever

thumb

Fort Knox.

points mentioned

are

sim¬

ple
fundamentals
of
a
sound,
solvent, democratic, representa¬
tive

government.

There

other aspect

one

of inflation that must
legislative action:
Government > must recognize the

have immediate

28%

earlier

Dee*

18, 1941.

During the present decade, the
high for the stock was made os*
Jan. 30, 1946, with a mark of 80%*
True to form once more, on May
2p>
(the 30th
erages

was a holiday), the av-r
topped off at 212.50.
'

On Oct.

30, 1946, General Motors

declined

to 47%, and all subse¬
quent bear drives failed to violate
that

low.

cast

the

early

The

stock

Consequently, it fore¬
bull

present

market

Feb. 28, 1947.

following table is

sum¬

of the signals given by this
at major tops and bottoms:.

March 21,

1929:

General Motors

high

July 21, 1929:
Sell—D. J. Averages

National Conference

June

Raymond C. Morse, President of
Brooklyn Chapter, National As¬

91%

345.81

Oct. 30, 1932:

sociation of Cost
nounced

that

Accountants,

an¬

large delegation
Chapter attended the

from

that

29th

Annual

International

Cost

Conference of the National Asso¬
ciation of Cost Accountants which
held

was

New

the

York

Waldorf-Astoria

June

1932:

30,

low

General Motors

General Motors
March 9,

high

1937:

Sell—D. J.

March 31,

193.29

Averages

1938:
i-

General Motors low

Nov. 12,

Cost

Conference

in New York featured
of

prominent speakers

trial

program

indus¬

25%

23.

July 31, 1938:

four-day

62.09

Buy—D. J. Averages.—.
Nov. 9, 1933:

accounting subjects.
More
2,000 N. A. C. A. members

" '

Buy—D. J. Averages,—141.25

1938:;:

General Motors high

53%

March 12, 1939:
Sell—D.
Dec.

18,

Averages.—_ 151.77

1941:

General Motors

28%

low

April

18. 1942:
Buy—D. J. Averages

and their

United

96.92

Jan. 30, 1946:

May 29, 1946:

•

Return to Dollars With "Sense"

cording

SEC,

Elliott has

Mr.

sold stock of the American Silver

only

totalitarianism entering the blood
,

with

1942

treme, General Motors had slightly

than

insurance
The government must, upon all
against ruthless politicians debas¬ considerations not the least of
ing and corrupting the world ex¬ which is its own
perpetuation, see
changes and money systems of a that it handles its finances so that
free people. I repeat, it is a bless¬
the people can have returned to
ing from an all-wise Providence •them the dollars ?■:' with
"sense"
to prevent the tragedy that;folT
which they trustfully put into its
Jows & debased, corrupted and
keeping;
and .the?, government
politically managed .medium of must see to it, not that the money
exchange. The gold standard is the shall
be : returned "merely1 In
automatic watchman on the tower
numerically
equivalent <: dollars,-;
of the government of free men,
but in dollars that shall be of
to-guard against the poison of substantial
purchasing "
Ages. * It

28,

the averages at 92.92.
Once again, obliging in the ex¬

tributive

;■ >/

subse¬

and

quent Jap successes, then brought
about a slow downtrend that cul¬

forgive

31*

141.2#

was

12, 1939 when
slightly higher at

only

was

July

Dow

March

151.77.

mary

Brooklyn Chapter NACA
Participale in

permitted profit¬

able operations during this period,
although the results were not
so

Elwood

rally that lasts

Nevertheless, this present method

have

sisting of Golf committee, Pat Pat'terson, Blyth & Co., Inc.; Attend¬
ance, A. C. Purkiss, of Walston,
Hoffman & Goodwin;
Publicity,

no bull market,
technical correction*

bar & Co., general chairman, and
his hard-working committee, con¬

its

eight

year

times.

John B. Dunbar of John B. Dun¬

or*

12, less than

ists maintain that

would

—

2514

recorded

months later at 53%. Some theor¬

nearly

Horseshoes
Winner, Otto P.
Walters, Bateman, Eichler & Co.;
runner-up,
Robert N. Gregory,
Harbison & Gregory.
In charge of the event were:

Motors made

this period

for

March

The

Exchange

charged

was

Co., and Claude C.
Richards, R. H. Moulton & Co.

H. Moulton &

accounting organization
in the world to study the impact
of current economic problems on
industrial accounting techniques.

against
July 12.

there

dustrial

hearings

N. James Elliott

According to
students of the Dow theory*
a bull
market, albeit a

many

The delegates todk part in the an¬
nual gathering of the largest in¬

SEC Charges Dealer
With Fraud
Has

Doubles,

The market of the late '30s was
confused affair.

under discussion

Tennis—Singles
Dyer, Jr., Revel

Daniel

the

69.

score

(Continued from page 3)

winner, Jimmy
Cockburn, Crowell, Weedon & Co.,
score 76.
Runner-up, Bob Miller,
ex-Sutro & Co., score 77. Low net
winner, Wayne Glover, California
Bank, net score, 63. Runner-up,
W. S. Patterson, Blyth &
Co., net
score

served

Golf House while dinner will

the

ever

break faith with

Televi¬

Earhart top-grain leather

Buffet

been given. No man, no party, no

government

Console

luggage.

obligation, imposed by all

divine

Electric

sion, Radio, and Phonograph Com¬
bination; and a matched set of

2§

Los

Golf: Low

the

capacity to take care of the
needy. It is the thrifty citizen and

ment cannot

principles of sanity, right¬
eousness,
solvency,
and
stable
upon

whom it asks to

pot the government, that must and
does provide the money for this

thrifty Ameri¬

deter¬

mination to keep this government,
this people., ourselves, free from

Some

ice. When any Administration, no
matter what its personnel or its

the interests of all

may

our

(2769)

attending.

xmr

purpose. Finally, the interests of
those on relief are identical with

tor¬

world,

stage.

base

Take, and keep, all relief out
politics. The crying need for

the

higher

mance.

Restore to the states their

proud

about

declare

deficits, and despair; and to pre¬
serve our priceless
legacy founded

gerous

vize,

and

the serfdom and shackles of debt,

increase in wages. Thus the dan¬

continue

all

see

distracted

resolve

CHRONICLE

wages

its

tax-paying citizens; to
to regulate and super-

tured,

FINANCIAL

and higner
prices must be met again by an

by the Constitution.
Make
government
withdraw
from the competitive field against
own

This

would-be

but

Corporation
since

States, Hawaii and Cuba

participated in the Conference.
Members

Chapter
who
were
Chairmen
of
Oper¬
ating Committees included: Her¬

Brooklyn

bert

A.
Johnson,
Registration
Committee;
E.
R.
deBechevet,
Hospitality Committee, and Mal¬
colm B. Varney, President's Ball

Aug. 28, 1947, and through
materially false representations.

Committee.

Mr.

Elliott is President and Gen¬

the

eral

Manager of the company and

dorf-Astoria

owned 356200

shares of its stock

Sbpt. 30, 1947.
The company
is now in receivership and is un¬

;

The President's Ball

Grand

June 21.

Ballroom

was

,•

held in

at the

Wal¬

Monday evening,

on
.

dergoing
Federal

reorganization
in the
Los Angeles.

Court in

—

New York Stock

Exchange

Weekly Firm Changes

Co.

has announced the

i Lewis
Management Company,
Inc., is engaging in a securities

business

from

offices

changes:
John

Wall

;

Reitzell, Reed & Co.,- Inc.
H.

PA.—The firm

Scott

Co.,

name

1001-1007

State

Street, has been changed to Reit^

zell, Reed & Co., Inc.

•

Cornwell, Jr., general

limited partner

ERIE,

following firm

partner in Hardy & Co., became a

Street, New York City.

Sell— D.

effective May 1.

Walter W. Crawford will retire

from

partnership

land & Co.
Carl

Betts,

Bor¬

June 30.

Boker, Jr., partner in

Fahnestock &

Co., died on June 14.

80%

Averages— 212.5©

Oct. 30, 1946:

^
General Motors low.——
.

47%

Feb.

28, 1947:
Buy—D. J. Averages.— 178.90

So much for hindsight. Of more
pertinent interest is the indications

that

the

stock

gives. Since
signal has been
given, it is necessary to be on the
alert for a top.
Failure of the
the

bull

stock

now

market

establish

new

high in

the next four months would

the

recent

this

seems

top does

——

Lewis Management

General Motors high

stitute such

The New York Stock Exchange

power.
the
most- ;

ordinary, the most common, and
in a sense,« the lowest kind of
mere
money
honesty. Are our
leaders ready to do these things?
They must, and without compro¬
mise, - hold
that
line*
or
the
Trojan Horse, with national bank¬
ruptcy riding in the saddle, will
open
the gates to the waiting
agencies of forest-fire inflation.

registration

without

guests, representing the
Association's 100 chapters in the

General

signal.

action

con¬

Considering

of the

market,

unlikely. But when the

come,

Motors

rest assured
will

herald

that
the

event months in advance.

Schoellkopf & Co. Change*
BUFFALO,
N.
Y. —Paul
A.
Schoellkopf, Jr., will be admitted
partnershop in Schoell¬
kopf & Co., 70 Niagara Street,

to limited

members of the New York

Exchange,

Stock

July 1. J. F. Schoell¬

kopf, Jr., will retire from limited
partnership
in
the
firm
on
June 30.

THE

(2770)

COMMERCIAL

(Continued from first page)

merely "for the record." To make the confusion still

worse

confounded is the fact that not all of the Presi¬

dent's

own

party has shown much stomach for a good
has been advocating. Nor
influential members of the Republican Party

some

encumbent

clear at many

them to make their positions

upon

of these disputed points.

.;K-

We Must Get at the Issues
Yet somehow the

people of this country must insist that
the coming campaign be so conducted as to give them an
opportunity to issue mandates to both the President and to
Congress on at least the more basic of the questions which
the past year or two and the record of Congress have left
open.
It would be clearly unfortunate if, when the next
President enters the White House and Congress assembles
next January, there remain any great measure of doubt
about the general lines of public policy the people of this
country want its Government to pursue during the next
four years. Such a result may or may not be obtained in the
voting this autumn. Whether it will or not depends upon
the conduct of the campaigns now about to get under way.
How those campaigns will be conducted and what their net
result will be depends almost wholly upon what the voters
appear to demand of the candidates and the parties.
If it be asked how the voters, in
--

Day,

can

is not

answer

managers,

sixth

make

their

wants

difficult.

too

and

advance of Election
wishes known, the

Political candidates,

and politicians in general develop
about

such

measure.

with

Congress

foreign aid,

if not all elements expressed them¬
satisfied. Yet the fact remains that this measure

most

a period of months.
As
fate, the question will soon rise to
plague us again — how far do we wish to go, indeed
how far can we feasibly go, in bribing other nations to
turn away from Communism? A number of the
Repub-

certain

lican

almost

leaders

posed

give

have

even

litical

TIME.
AND

MUCH EVADING

THERE NOT SOME WAY IN

CAN

THIS

REALLY

" 1

wage-costs

well as incessantly
mass-spending. They
to one thing.
as

increasing

;

add up

One way to raise wages, and to
go

raising

them,

cost-of-living

the

formula

reintro¬

duced

;■

by General Motors, It is
being widely celebrated as a de¬
vice to 'provide economic justice
in income distribution
sure

peace

and to

as¬

the labor front, if

not to end the

vice

camouflage

tendency

about

the-vicious

behind

wages

smoke-screen

Barometer

„

index

numbers,

which already is being used with
that very result by a substantial
number of smaller firms in scat¬

tered industries.
General Motors'

11-cent hourly

raise

adds proportionately to the
company's labor cost per unit of
output; together with; increased
freight and rising raw material

into
in

program

essence

of managed

whether

sacrosanct

far

economy, shall be
be shouldered

should

eminence, shall continue,

the

record

these two basic issues
.

are

Washington is concerned
wholly undecided and fully

ardently behind virtually all of the
Rooseveltian New Deal. If he has not
always been able
to carry his
party with him in this matter, this failure
is not decisive so far as the
position of the Democratic
Party is concerned. Roosevelt often had to get
along
without enthusiastic
support of some of the elements
of his party. At all
events, the attitude of Democratic
elements in Congress has not been
clearly and emphat¬
ically enough enunciated to amount to even a partial

;

General Motors'

more,

action breaks the backbone of in¬
dustrial resistance

wages,

which

setting
others

follow.

Gen¬

Electric

negotiations which it had

year.

once

had

re¬

raise
about

will

cost

$50

the

million

Chrysler, Kaiser-Frazer, and

Nash

followed

petitor

their

chief

com¬

rapid succession
by
settling on 13-cent and 11-cent
hourly raises—a beautiful illus¬
tration

the

effect

labor

shortage: employers trying to out¬
bid each other in competing for
the workers' favor.

that

far

has

the

was

wholesome respect for public opin¬
ion
(and for

Congress) byv em¬
ployers as well as by union bosses.
That controlling force
virtually is

the

wages

cost

living—re¬

places bargaining.
No one seem¬
ingly is responsible any longer.

Rising

wages are sanctioned

false facade of
cial

and

reason,

economic and

so¬

turn

justify
higher prices. Public opinion loses
its grip, and inflation can-run its
uninhibited.

course

•

Current

increases

wage

•

cannot

fail to have their logical price re¬
sults.

Higher prices

turn, will

is the fact that

(or

even

the wage

instead of annual

bi-annual) revisions of
pattern, we will have a

boost

after

swing, if only in
ion

£0::-

up¬

quarterly fash¬
,

Mephistopheles to

smarter

price

;■ V;;

It would take
concoct

each

procedure

for

speeding up inflation, while pre¬
tending to dispense social justice
and economic

flexibility.

have

concerning these vital issues.

significant is the
follow-up in the long pull. Con¬
sider the psychological result. The
working man, who may have had
inhibitions about paying higher

prices,

now

that

he pays more, he also will
The retailer, who wor¬

will

know

for

sure

earn more.

ried

Clarify the Issues

and

pro¬

duce unequivocal mandates must
enunciate issues for itself.

about

consumer

resistance,

tried hard to keep his costs
down, can relax, too.
Already,
prices which seemed high yester¬
day are accepted as a matter of

most

this dilettantic

•

countries;

experimented

with

variety of Planned1

Economy.:

y VV''; v
y.
True, the General Motors agree-1
ment foresees
the possibility of'

lowering wages, and in the same'
proportion as raising them.
But
labor

wage

unless

forced

reduc-1

sky is the*
only limit in the opposite direc-.'
However, chances for a pos¬

tion.

sible downward revision, even
that very moderate extent, are

to '

vir-j

;

If wage determination

numbers, is

dangerous. According to that
agreement, the company's payroll
can
be raised by $5 million
nually whenever a 1.14-point

an¬

up¬

change in the cost of living
Such

than

small

change, much

from

the

cost

living

index

a quarter,
usually does in this infla¬
period.> Pronto,. wages

by 1 cent an hour
1.14-point rise in living

costs.Consequently*

production
do prices.
In

costs go up, and so
oher words, a temporary

costs

which

rise in
might have

been cancelled otherwise will be¬
come

permanent.

miracle to lower prices
costs? are rising all

labor

around.
eral

Or could it be that Gen-

Motors'

underestimated

significance of its

the

action and

own

assumed that it could boost wages
in its plants and leave the rest of

the

country's wage system unaf¬

fected?

IV
In

recent

Motors'

Mr.

address,

Wilson

General
argued

that his wage formula "would not
establish a national pattern of so
many

cents per hour. We do not

believe

uniform

terns." This is

wage

pat¬

most remarkable

statement coming from such a dis¬

tinguished source. The cost of liv¬
ing formula does establish a wage
pattern
ments

if other wage agree¬
imitate it at once.

even

not

Actually,

the current examples
mentioned above show the perni¬
cious

national

influence

the

over

labor market produced by G. M.'s
"constructive leadership." If and
when

firm

of the largest motor

wages

will rise

the

most

basis of the

industry

with

—

will

without

formula.

any,

The
difference,; if
will consist in the time ele¬

ment: organized workers in other
large plants may get the same or
similar wage
later.

With

increases somewhat
their

contract

expiration, in one form or another,
they all will demand the formula
that has given
General Motors'
employees the jump on them. Nor

wages the only issue at
justification of the newly-

are

embraced formula, both parties to'
the
agreement
argue
that ?,* it

must be boosted

living

when

to raise

tionary

for each

short of

stake. In

goes up in the course of
as

present

1 cent an hour. • Suppose,
for example, that for some
special
reason

the-

fact that its wage raise at this
juncture necessarily
will 'carry'
prices with it. - It will take little1

the

by index

ward

overlooked

•

dangerous principle,
its
practical application
in the
General Motors contract makes it

occurs.

have

could

have to follow

Ill

level, is all that is needed

later

which

formula,

wages

Even

of
are

sibly

less

ii
■

could

Clearly, therefore, the coming campaign if it is to

hourly

consumer

occasion

no one

eral

pressures

control

against higher
new
"pattern"

must

large number

to be exerted for

semblance

freshi

to*

the

wages under some

has been demolished. Its proposed

precisely what

their supply

before; the "moral" pillar
supporting its negative attitude

party repudiation of these programs. But the
Repub¬
lican Party has often "winced
and relented and re¬
frained" during the
past two years. It has

actually overridden an executive veto. Yet
sayJhat the legislators have made it clear

short

cars,

already.
What is

the

fused
/

debate and settlement this summer and autumn.
The President, to be
sure, has repeatedly placed himself
on record as
being

upon

for

demand

open

open to

their attitude is

mean

same

out of the path of
progress as promptly and decisively as
possible; and second, whether the foreign policy which has
been evolved by the
present Administration, and which, so
far as public utterances are
concerned, has now attained

almost

bound

kept prices and

force

one

period of time, as if the lawmakers wished first to hear from prices, it is bound to affect the call automatically for new wage
price of cars, trucks, and other
the people. The two basic
That is
questions now before the people products. And the additional in¬ increases, and so forth.
not new, of course.
What is new
are, of course, first, whether or not the New
come
of the employees is likely
Deal, with its
to go more

tually nil. One wonders whether
General Motors' management pos-

inflationary spiral eliminated when a mechanical de¬
reality, this is merely a de¬ vice ; —r automatic adjustment of

determines

political

—

acteristically, the permissible de-.

They will be "swallowed"
readily from here on. .Above

The

en¬

cline is limited to 5% in the next
;:
two years, while the

all, public opinion is being lulled
into "relaxation.":
.•;<

old

near-'

so
by
widespread unemployment? Char¬

course.
more

changing or
recomputing it as it suits the pur¬
pose.
That is what has happened

BE PLACED BEFORE THE PEOPLE THIS SUMMER AND
-

sure

WHICH THESE

OTHER EQUALLY VITAL ISSUES

when

people

apparently at times been dis¬

(Continued from first page)

Others have been definitely rejected, whjle still others
have been
partially adopted, or adopted for some limited

continued

interest—as

become

friendly consideration to vast control
keeps demanding.

HAS BEEN

refined

it,

sooner

THERE

livelihood

which the President

measures

index

in what locations, how to'
weigh each item, etc.
There is
nothing holy about an index, and
once it becomes an object of
po¬

Inflation by Escalator-

upon.

and

forces

and what commodities should

ter

ticns

Congress leaves the field wide open.
Indeed that record in one sense
virtually refers many of
the current issues to the
public for decision this summer.
Many of the proposals of the President have not been acted

visionary alleged reforms and its determination

demand-supply

perfection, but it remains open to
interpretations as to how many

would

record

finally reached

was

only settles the question for

—

The

which

selves

things.

would issue and there would be little left to
say
the matter.

compromise

their

points from his
chief opponent, the people can make it certain in November whether or not they want a continuation of the
New Deal a la Roosevelt and Truman. If both parties
and both candidates appear to promise about the same
things regardless of campaign thunderings, a mandate
albeit one we should certainly not like very much —

living

v':

sort of

for doubt that he differs at vital

room

nature

presently at

play, the chances are
the one in con¬
that this is exactly what will
hap¬
dominating the pen: prices not
only
will
be
legislative halls. One almost perfect' example is found in pushed upward in a cumulative
the so-called
Taft-Ellender-Wagner housing bill, which ob¬ fashion, but even the passing
minor upward waves will become
viously carries the names of leading figures in both parties
entrenched in the price structure.
and was
recently given a strong endorsement by the Presi¬
Also, there is a question as to
dent himself. It remains unenacted—as we
hope it always .the statistical technique involved.
will remain
but, from all appearances, as a result merely Why choose 1940 as the base year
for comparison of the costs of liv¬
of dilatoriness, obstructionism; or factional
disputes. The
Trade Agreements Act was renewed (with some alterations) ing? Any such choice is arbitrary,
and any other base year
might
for a period of one
year only as a sort of last minute com¬ bring different comparative re¬
promise. It would be difficult indeed to say precisely what sults. The compilation of the La¬
the position of the
Republican Party is in regard to this bor Department's monthly cost of

AUTUMN? '

If from the precinct
level up the impression begins to gain headway that
the Republican candidate, for example, is not doing well
for the simple reason that he does not make it clear
where he really stands on current issues of vital consequence to the country, something will be done quickly
enough to right the situation. If then he leaves little
sense

Thursday, June 24, 194&

—

deal of what the* President
have

CHRONICLE

They have not been created in advance by clean-cut divisions

appeals of President Truman are really intended to be
taken literally and seriously and in what degree they

felt

FINANCIAL

of view and belief between the two parties,
trol of the Executive branch and the other

As We See It

are

And given the

merely restores to the 1940 level
the

purchasing power of the em¬
ployees' earnings. Assuming that
this claim is correct, it certainly
is not correct to base the compari¬
son on hourly rates. "We propose,"
announced

"reestablish
an

Mr.
the

hour of work

(Boldface his.)

Wilson,

buying
on

power

to
of

fair basis."

What matters, in
place, is not wage rates
but actual earnings. By last April,,
compared with the 1937-39 level,
the first

•

;T Volume 167

Number 4710

-THE
«'

earnings

" monthly

average

down;

130%, while consumer prices
moved
barely 70%, and hourly
rates by 95.2.
Z
Moreover, the cost-of-living es-

calator

•

there

does

not

and

cannot

increase

Z ployed.

the

number

does

not

and

the

take

em-

and similar

rest,

see

our

the

very

from

the

bene¬

for

than

rates.

wage

The

to 1: raise

which

to the

between

wages

has

and

now

November.

election

its

part

lines.

roll-over of the June-July maturi¬
ties withia 11/8%1 one-year certifi¬

this

is the

year

for labor

that

say

reasons

that

time when the

November^ 1947,

national

income

However,

will

you

suit

at the fantastic rate of
billion and rises month by
month. The problem is to check
bhis inflation threat, especially its

had

been

pre4

expecting

was

van

most of

these

have

escape clause

this announcement ^was^

buoyancy

in
government - bond
prices. This also 'stimu¬
lated market prices for high grade
corporate securities,
• :> '
> :>&
market

essential
1

eral

nonetheless, that t, iridusleadership as well as. labors

trial

the

unions

recognize the seriousness
Z of the problem and do more than

mutually to blame each other. {It

ip is

up to them, as a matter of fact,

to set

standards for public policy
rather than to create conditions

(which help to. postpone if not to
eliminate

proper

action, '

■■■'/ '■ The bonus formula implies

Reserve

/»

r»

rr*

an
!

•

2% increase in

requirements for New

reserve

loans

watch

ments should have

/ effect

bond

mild depres¬

on v the: government

market.

Actually,

will

much

don't

■

one

way

increase

food

our

the other.

this

and

toward

TfL

■"*

■

healthy thing.

was more

build¬

ing of housing throughout
country than we have had in

the
ovei

months

1947.

This

larg<

volume of

building, of course, re
quires financing, and I understam
that

the

run-away

such

ment don't coordinate their activi¬

Germany
ties. There are constant announce¬
z after World War I and in Hungary
after World War II, reached their ments of the harmony between
ultimate phase of total repudiation the Treasury Department and the
Federal- Reserve Board—in fact,
? When once the
principle was gensometimes one wonders if they
;v erally established that
wages and
don't protest too much.
Just to
salaries have to adjust themselves
make things more confusing, the
to prices.
/< (j. .
Disregarding the extreme case Treasury Department a few days
as

licked in Italy,

were

of run-away
it is, the
escalator

/ mination

inflation, instructive
implications; of the

method

the

are

deter-

wage

same

under

all

circumstances of rising prices. The
New York National
City Bank's
latest report quotes the war-time
,

•

National

Labor{ Board

War

having gone on record that cost of
living increases should be offset
by Wage adjustments, but at the
time could not

same

help but put

Z down that: "To prevent inflation¬
ary spirals it must be recognized

lifted the restrictions

ago

ries F and G bonds.

siphon off
funds

some

Se¬

This should

of the uninvested

and

pressure

perhaps slow up the
to higher bond prices.

The Wages Question
There is another thing we must
always think about when trying
:•..

analyze conditions today—and
is, labor and just how suc¬

that

cessful
in

the

their

wages.
down

labor

efforts

unions

will

higher
When U. S. Steel turned
wage
increase several
secure

good thing.

course, a

was,

But that

was

only temporary—the recent
developments in Czechoslovakia

counter-balance

How

far

knows.
eled

which

Italy

Russia

somewhat.

will

People who
Russia have

nobody

have

trav¬

back

come

with reports that the Russians do
not have the economy necessary
to

support
inclined to

Also,

think

Russia

war,

and I am

they

are

right.

has already taken
of certain countries

control

over

long

Europe which already are used
underground opposition tottheir

governments. It may be that the
Communists will have their hands
full

in trying to stamp out un¬
derground opposition in countries
like ' Yugoslavia, Czechoslovakia,
Poland, Rumania, and even the

Russian

Zone

ally adjusted to increases in liv¬
ing costs." What is at stake in this
apparently innocent technique of
wage
adjustment is rwell illus¬

Germany.
On
the other hand, the Russians have
months ago, it looked like maybe
a
very militant political philoso¬
management was going to hold
the Line; but with the recent set¬ phy and are taking advantage of
a
war-weary world.
I am not a
tlement of Z the General Motors
war monger and, barring an inci¬
wage controversy, it looks as if

trated

that

cannot be

wages

automatic¬

versy

presently by the control
in France where the Com¬

munist

unions

wages to

moderate

1 The

about

insist

raising

match prices, while the

recent

unions

Supreme

statutory

overtime

recognize

Court

decision

payments

typical of the "hidden" benefits accruing
to
labor in this period.
•2 "Net
spendable earnings" t are
ob¬
tained. by deducting from gross weekly
earnings socral security and income tax

liabilities of
an

adult

is: then
rise

real

and

'married
two

erally,

kept

by
the
percentage
price index to obtain

earnings.

in for wage increases gen¬
So far Mr. Lewis has been

under

control, but nobody
long.
Also, the
railroads are still being operated
by the government—whether the
knows

for

how

government will give the railroad

employees
it

still

the

wage

controls

railroads

increase while

the

operation

anybody's

well

crease

aware

of the

guess.

The people from New York
are

"deflated"

in" consumers'
net

worker r«iop«rting
children.
The figure

are

recent

in¬

not expect
time in

any

war

with

the

near

future—but I do believe that Rus¬
sia will go just as far as freedom-

loving people will let her,
very

encouraging that

Department

for
.

stemming

taken,

policy

effective

way

those people.
y

get construction

money.

suppose you are quite familiar
with the fall-off in the
mortgage
market durink the last few months

I*see

it,

the reason for this
fall-off in the mortgage market
is the old law of
supply and de¬
mand

starting

work,

and

the part of invest¬
institutions that they had

ment

economy in time
fall of its own
weight. As
matter of fact this
spring we
had a definite indication
that this
condition has been
recognized

Congress—as

Z-Z-f'Zz ing

can

Z;?

deal with

Z'ZZ

■

are

some

the

should think about when try¬
to

decide what to

look

for¬

probably know,

passed) provides that the Federal

Housing Administrator shall have
the authority, at his
discretion, to
raise

the interest rates on Title
loans from 4 to 4^2%
One factor which may have an

bringing

about

in¬

demand of industry for
capital funds for plant expansion
replacement
of
equipment

and

which

was

out during the
of this has already
been undertaken but there is still
a considerable
amount to be done.

wter.

worn

lot

I recently read
that the public
utility industry alone may require
as much as $1.9 to
$2 billion for
plant expansion purposes between
now

1950.

and

There

are

many

other industries besides the pub¬
lic utility which will need vast

raise this

pered

outside

adjustment
New

was

York.

fell
A.c

probably know, the market in

you

New

York

certain

peculiar and
which are

has

elements

not

characteristic of other sections of
the

The
competitior
the savings banks, which
limited by law as to the terri¬
country.-:

for

the

securities

are

sums

same

purposes.

offered for sale, to
capital, the la\y of sunply and demand should probably
bring about an increase in rates
if the economic laws

are

not tam¬

with.

One

danger that we
should
guard against is over-building. I

personally have felt that the hous¬
ing shortage has been exaggerated
and has been played to a farethee-well, for political purposes.

among

Unless

are

tory

which
artifical

creates

unfortunate.

think

don't

about

it.

they can lend
stimulus, which
Unfortunately, 1

much

can

However,

this

done

adjust¬

in premiums which has

ment

the

curred

mortgage
New York is

outside of

oc¬

market

healthy
matter of fact, conditions
the mortgage market are ap¬

and,
in

as a

what

proaching

normal

under

there is

ever,

ion

this

they

should

conditions.

How¬

difference of opin¬

subject.

A few days
one of my friends who is in
position to be prettey well in¬
formed, because of his extensive
on

ago,
a

travel

during the last few months
that his observation was

stated
that

there

is plenty of mortgagf
available at a price, bu1
that there is a definite stiffeninr
money

rates

also

in mortgage

stated

that

money.

there

are

some

Shortly after that I talked to an¬
other friend, who
expressed a
somewhat different view—his

ex¬

party is in power, such steps will

economic

by. our
managed

easily

economy

put

which

are

would

San

too

bring

a-mild

—

.could

effect
harsh

very

measures

and

which

about chaos
depressant

it is my guess that the favorable
outweigh the unfavorable—conse¬
quently,. the chances are that we

my guess

area

into

rather
effect.
Sound judgment is needed in de¬
ciding what should be done.
Adding up both sides, the favor¬
able and the unfavorable factors,
than

two later, I talked to a banker

Oakland

planners—the

advocates .of planned economy or

the

be taken to correct this condition.

from

ourselves,

The tampering with our economy

will have

was

construction money

watch

going to wake up suddenly
some day and find that we have
a
surplus of housing—in certain
sections of the country
and at
certain price levels—perhaps that
day is not too far off. If rent con¬
trol were eliminated, I think it
might come even sooner but, of
course,
the elimination of rent
control at any time soon is .too
much to expect.
One other thing we must watch
out for is what steps are taken,
after the election, to curb infla¬
tionary trends. Regardless of what

that it is hard to get
and to dispose
permanent mortgages. A day

perience

things

you

the

high premiums for loans—I arr
referring
particularly
to
FH/
loans. / Suddenly, last
fall, and
early this winter, the institutions
began to reduce the amount oJ

spots where there is ample hous¬

Z Watch Retail Sales

These
one

one

infla-

mendous

ing to meet the demand but there
are still plenty of locations where
additional
housing
is
needed

adopted such a
its dealings with

present

must be under¬

our

the

It is

Russia—it appears to be the only

the

tionary tendencies

in interest rates is the tre¬

State

our

has

firm

City

in wages granted to build¬

ing employees.

dent,

Russia

temporarily

may

November, in my humbte
opinion, we will in time see higher
interest rates. A definite
program

I believe this

effect

sections

wrong,

merely
adjustment and

this
if

crease

certain

allowed the pressure of uninvested
funds to cause them to pay .toe

but more
to settle

cor¬

ficult

realization

time,

realize

the

country it is beginning to be dif¬

ous

necessarily,
of trying

the
to

foresee

proposed extension of FHA
tremen-. Title VI (which has not yet been

and, regardless of
sympathies, I personally.think

question ;

will

Mortgage Rates

mess

support of any solution sug¬
gested by the U. N.
It isn't a
question of what is right and

and

presen

our

Last year, there

wages

hard

afraid so, and

far.

was

further easing of interest
rates in the government
and cor¬
porate bond
markets, perhaps un¬
til after the election.

controlling

well

bureaucratic forr
of government—all of which woulc

Now,

The worst result of

move

have

administration ma;
toward busines:

four

it looks

sympathetic

the

that

too

accelerated

price?

high prices? *1

n»i

went

that has occurred since
that time. I believe that
the re¬
cent shots in the
arm have

Z inflations,

and
.

food

squabble which has been going on
for many years and
walking in on
psychological
effect it will have on bankers, in- actuation for which we didn't
tended — consequence of which
vestors and the investing public
/have any solution/ It's very simiZ is the destruction of the national
premiums they were willing tc
of
them
will jar 1° trying to settle a squabble
currency. Whoever might regard generally—many
pay.
This happened all over the
wonder why the Federal Reserve between a man and his wife.
this as an exaggerated statement
country and> as a matter of fact
Bank and the Treasury Depart¬ Zt Last:
;
April,
the
Communists
may be reminded that

Z industrial leadership, the straight;: forward — although surely unin¬

drop in bond prices last fall and
the resulting increase
interest rates, and stated
that,
in my
opinion, it was too sharp

presently ex¬
will probably have {

that our government should have
confined its activities to a
vigor-,

sant

good

growth of

that the
gotten them¬

This

Chicago banks to 24%.
is contradictory to the
i%%frroil-over—technically, this
2% increase in reserve require¬

interests

our

move

not

permitting

consideration ;.ig, the international
4-*
i. t
situation.; The situation in Pales

felt

winter and

buildirr

and

should

these increases in wages be
passed
on
to the public in the form of

tine is

men

rection

that

York and

think.it
an

out ; with

came
"i.

announcement of

conversations

of these

definite increase in

estate

real

organized action. But it is

these

will add to the high cos
living. Perhaps the most im¬
Whether or
portant things to watch this yea v not this will influence
mortgage
are the political
developments an ; interest rates is hard to judge.
how the 1 election goes.
It look:J But regardless of who is elected

economy? Will

that

Future of Interest Rates

this fact

20 years, and there is a
dous volume again in 1948—con¬
tracts the first four months o"
1948
were
30% above the firs

our

A httle earlier I
mentioned the

two-year contracts

going to do to

stated

firming

rates for
mortgage money

further

basic

.one

dollars, and observe

We should watch the vol

pected,

the

canceled

definite

one

however, it

are

willing

: notice

is that each
that there is

by commercial banks
should watch the volume

means that the cost of
living,
element, the vicious Z
which
is
already high enough,
Now, just to give you an idea
1; wage-price spiral.,
will go v higher.
^ Zf! ?f
of the confusion of the times—
There's danger
[ Of course, this is a matter of about two weeks
there, :•/?: • ;/
?Z;;;: ;■'/ ;Z//??■;•? Zv/v?!:.''
ago, only a short
^public policy which cannot be
> A
time after Mr. Snyder's announce¬
third
and
very
important
| solved on the level of individual
ment of the iy8% rate, the Fed- thing
that must be -taken into
or even

terms

of loans

permits.

contracts.

the.lVk % rate, the market selves pretty well covered.
caught by surprise.? The re-j what are these increases in

was

running

market

and

ment of

$210

interesting tnfng about

three

and

chance

went

are

into <two-year

by 25.9%; from $23.62 to $29.58;2
annual

ume

tops
opinion

one

why the unions

enter

increase in the rate for one-year the contract to be
certificates to lVi%—so that when redrawn in - a '
year,
Mr. Snyder made? his announce^ ■labor^unions have

when

and

houses.

are

last

The

pared for

/'net, spendable real earnings" of
.manufacturing workers has risen
between 1939 and

economy

I suggest that we'shouk
trade

Bay, Calif.

there

all

by chain anc
department stores and mail orde

other

get substantial wage

increases—this statement

cate.

tip-oh

our

which

The
problem today is not t-to
safeguard the purchasing power

touched

give

this information. We should watcl
the volume of sales

recently read somewhere that

that

the

business condi¬
tions since last winter—take, for
instance, the recent announcement
by the Treasury Department of a

Zone line, and leaves the door wide
.open for the same pressure along

wages

that

of mortgage interest
rates
area.
The

how people are paying for thel
purchases—are they paying casl
buying on time?
There art
statistics
published
which
give

page

the labor economists who
in their field are of the

Consequently, politics

also

played
improvement of

upward pressure along the

other

from

blame for bad business conditions

the indirect channels.. It adds

open

also

Francisco

few

of other

both

(Contiued

living formula, therefore,1
only creates a smoke-screen

behind

next
lot

not

direction

retail

volume

Economic Trends, Interest Rates

.directly, but in addition it leaves

need

going.

watch

merely implying that the dollar
has lost Its function as a
straight
we

might

the

are

prices, and the tip-off is how thi;
year's crops develop—if the crop:

again that labor bargains

■

prices, are not to be
in dollars, but in some¬
thing else such as "purchasing
power," whatever that means. By

that

during
have

the

economy into chaos. But if gen¬ monetary chaos. It is not too late
erally accepted, their principle of as.yetJor.s$op on the
slippery road.

-cost of

not

(2771)

There

which

power

The under¬

only be

wage boost is a case in point,

It shows

things

course

standard,

months.

Wilson:

"the buying

hour of work."

and of

into chaos."

intentions

measured

purpose

lying idea is not expressed sharp¬
ly, but it is clear enough by im¬
plication. The idea is that wages,

people who would

our economy

reestablish
an

Mr.

ward

the pension fund rather than

CHRONICLE

measuring rods to guide our pric¬
General Motors and United Auto¬ ing
policies, we have started on a
mobile Workers than to throw the road the end of which can

working and living conditions,

^on

FINANCIAL

Certainly, nothing could be fur¬

all at company expense.1
John L; Lewis' current emphasis

some

for

ther

fits, and'numerous improvements
<

effect, the socialist Sir
Cripps may be quoted.
realize," he said recently, "that
are

worded

same

throwing

programs

British illustration to

increases, short hours and all the

cannot

security of tenure, or such obvious
advantages accruing to labor as
greatly enhanced or newly intro; auced paid vacation plans, pension

democracy de¬
stroyed that they may win power,
and
they
naturally
encourage
every kind of demand for wage

/■

gladly

into account the comparative

iaKe

COMMERCIAL

Stafford

into account the income boosts
(even after taxes) of the family
unit, brought abput by the huge

■

danger and demand instead wage determination would accom¬
chat
should
be
prices
brought plish just that. Note the
principle

some

the

manufacturing have advanced by

•

cive
some

environment condu¬

business for quite
Along with this, it is ;
that we will see a grad¬

good

time.

ual increase in interest rates.

Thursday, June 24, 1943
1B29

Economic Conditions and the Price Level
cation

(Continued from first-page)
clear that

Since
wage
rates
are
already
higher than required to compen¬
sate for increases in living costs

1940.

:
.

that

Assuming
still

interested

ther

inflation,

avoiding

purpose

to discuss some of the factors that

bearing on the suc¬
present efforts to bring

will

have

cess

the

pected from the increase in money
and bank credit because the pub¬

under control. I
lic has not chosen to spend its
shall discuss the following sub¬
money at as fast a rate as for¬
jects: (1) current monetary and
merly.
The increases in money
banking factors, (2) agricultural
and bank credit in the last 15
factors, (3) other consumer goods
factors,
(4)
wage
factors, years have been largely offset
(5) brakes on future declines, by the public's unwillingness to
spend. During the prewar period,
v(6)
monetary
and
banking
lack of confidence caused the pub¬
changes since 1929,
(7) public
lic to hold larger than normal
debt
and
price
stabilization,
idle cash .reserves/
During the
(£)
general
industrial lectors,
war, high prices, rationing, and
(9) agricultural differences since
lack of goods became important
1929, and (10) business knowlfactors in causing the public not
■•edge,
' A;;' •A
to spend.
As a result the turn¬
over of
bank deposits constantly
Current Monetary and Banking

price

level

decreased., ■'

Factors

Prices

bid

are

only

of demand.

result

as a
normal

Under

much

duction—and if money factors are
kept constant, price level remains
relatively stable.
Changes in price level which
are called inflationary come about
money

credit

prices with money

which

and

probably added some stability to
the general structure though the
passage of time tends* to exhaust
the patience of additional holders
of liquid funds. >' The money and
credit factors then appear to be

well known to this audience,

but I repeat them because I wish
to
emphasize
that
inflationary

which

items, and household .furnishings
more plen¬
tiful
supply.
Some
declines ia
prices and production are in evi¬

Pipelines
tires

other

and

reasons

substantial

volume

stable

automobile

However, these industries supply
which

the

demand

can

state of

mits

about

come

which

balance

arresting

the

per¬

inflationary

The

the

ex¬

elements of

farmers

sub¬

the

woulcl

the

droughts

effects

prices

long after the

traceable

the

food

war was

well

Cur¬

war.

rently

the food situation is in
condition, as are also many
agricultural '? products.
Basically the supply and demand
easier

non-food

factors in this

of the economy

area

much

not

are

vious

1929.

attractive.

crisis for

continuation

booms

changed from
for

except

pre¬

govern¬

price supports which

are

in process of restudy
by Con¬
gress.
Such supports will be of
now

considerable

significance; but that
significance will, of course, be
conditioned by the legislation ac¬
tually enacted.

Public

Debt

and

Business

Price

Stabilization

mention

much

When price level changes, many
elements in the economy adjust to

both

ships.

After such adjustments are
made, further changes tend to
require further adjustments; and
even though a
trend is reversed

ward

that

the

cerning

relation¬

Knowledge

conclusion

take account of changed

and

residential construction industries.

for

level

mental

credit stability in turn pro¬

Strong factors in the immediate
the

1920

income
still

witn

even

reduction

stability for botn
prices and business.
1
~ '

price reductions have
been made.•.!■
A'AA-. ; ■' ;•...AAa; A A A
are

high that

For

that which

than

either

some

situation

vide elements of

that

working schedules in some cases
ate reported to have been relaxed,
and

are
basically stronger.
Further, the level of farm price3

ana

money

credit supply which is supporting
the present price level is basically

mass

such

in the past.
the

These unprecedented

rubber

the

liquidated

goods have already been produced
in

repaid

been

isted

reported to

are

reasonably full.

Rubber

cannot

scale that private loans have

these

have likewise been in

the

same

Radios, household electrical

dence.

recessions

the

might be well

have' learned

past

years

conditioning

downward

and

prices and of
production.
Resources
and

up¬

movements

work

con¬

industrial
of

team¬

business

general

ad¬

ministration are quite as impor¬
elastic; for example, in
tant as physical resources in deal¬
spite of the present acute housing and various factors tend to
push ing
with
business
trends, and
shortage, people can actually con¬ adjustments toward the
original these resources have been in¬
tinue on a doubled-up basis de¬
starting ; point, such adjustments creased immensely in recent years.
spite the resultant inconvenience. are painful and cause dislocations
These factors, namely,
In the light of present conditions,
(1) sta¬
comparable in severity in many
therefore, these industries are un¬ respects to the adjustments made bility of bank credit, as influ¬
likely to feed seriously the flames when the factors were moving in enced by stability of public debt,
deposit insurance, a reasonable
of inflation.
V
' AAA
the previous direction. Because of
tempo of private spending, and
Summarizing these factors, it the impacts of different factors,
conservative
administration
of
would appear that the chances there .is a tendency to shun ad¬
bank
loans;
(2)
completion
of
of arresting the steep rise in
justments wherever possible. The
somewhat

•

cost of

living

the
good. It is true
will not mature

are

that many crops
until Fall and that the easing

price

consequently
time; but the

pressures may
retarded for some

general factors seem favorable to

arresting

the

^.•V;Vv A'''
v,

■

inflationary

>. '*' 7.'?

A..;

trend*

tendency to oppose change.
Today there appears to be little
disposition to reduce the federal
debt drastically; in fact there is
than

duction

AlWe; have already touched upon
conservative

eral

much more sentiment for tax re¬

•'■'•!■ V,

r'V-.;? WageFactors,

the

present levels of national income,
prices, and public debt do not ap¬
pear to be exceptions to this gen¬

approach

in¬

Such

management

debt operates to
amount of

dustry to further

debt

for

bonds

reduction.

the

continue a .large
outstanding and

Such increases

price

business adjustments in numerous

lines while the boom

(3)

in prog¬

was

governmental

supports
for agriculture; and (4) increased
ress;

business
the

tute

the

know-how

national

respect

consti¬
differences from
which existed in

conditions

1920

with

economy,

significant
1929.

and

public

wage increases.
these in turn tend to preverit re¬
are important from
standpoint in two ways: duction in the amount of bank
forces.
',
' -:
;.'-iVyv ,A <A A../ ■;'AA (1) they may,- if financed by deposits. Hence this resistance to
only by increasing the money re¬
leased on the demand side of the:
credit, increase demand for avail* debt reduction constitutes a factor
+, Agricultural Factors •
will
tend
to
limit' the
able goods; and (2) they may by which
market
process
without corre¬
Turning to agriculture, which is
increasing costs result in further amplitude of any downward fluc¬
spondingly increasing the supply a
very important sector of the
tuations in prices.
of goods available for purchase.
, -AAAA'
price increases in the industries
economy from a price level and
which grant them when supplies
Bearing this in mind, it is ap¬ wage
pressure standpoint, we find
General Industrial Factors
of
parent that only the public can
goods are
short.
Industrial
general agreement that this fall
produce^, a further inflationary will witness a return to more nor¬ costs have edged up to unprece¬ V. Another factor of difference be¬
dented heights.
pressure, during the coming months mal
Only with large tween the present situation and
supply and demand relation¬
of 1948. The total supply of money
volume production can industry those of.
1920. jand 1929 • is the
ships. During the last two world
and credit has remained practi¬
make profits. Considering that re¬ period of time over which differ¬
wars
American agriculture car¬
cent volumes of production con¬ ential adjustments in the economy
cally stable for more than a year.
ried much of the load of feeding
The Federal budget has finally
tain
production
to
fill .empty have been taking place. The tre¬
the world and of providing many
been balanced and is producing a
supply pipelines as well as to mendous destruction and wear
million additional tons of food¬
meet current needs, industry must and tear which the war imposed
Surplus. Recent rearmament ap- stuffs
which were destroyed in
prop nations and tax cuts should
keep in mind the impact of bal¬ upon European heavy industry
war
actions.
Only bad weather
not seriously affect this balance.
anced supply conditions on future have produced sustained demands
conditions
delayed a return to
In addition, social security taxes
costs. As overhead is spread over on certain heavy industries in this
more normal relationships in
ag¬
and other trust funds are produc¬
smaller volume, profits fall rapidly. country. These demands have pro¬
riculture last year.
It is for this reason that I believe vided a high level of employment
ing additional surplus revenues

increases

price

■

Such eliminations have

markets.

by putting an equivalent quantity
of goods into the market to.J>e
purchased by others. These facts
are

turn¬

bank' deposits

has in¬
creased
during
the
last
six
months, but such activity tends
constantly to eliminate impatient
holders of liquid funds from the

obtained

not

were

over

community.
By printing more money or ex¬
changing bonds for the right to
draw
checks,
the
government
bids

much

Rate of

basis.

sustained

and

credit supplies in the

regard for prices,

higher level of prices undoubtedly
would develop without any recur¬
rence
of government deficit fi¬
nancing.
However, such develop¬
ments do not usually continue on

the demand for pro¬

through increasing the

reverse

public now impelled
its recent habits and

the economy appears to

positions

stantial

past, c-ausea
liquidity by discon¬
tinuing sound loans and thereby
forcing strong holders to liquidate
at any cost. Further, a large part
of the bank deposit structure is
based
upon
federal
securities

approaching a supply position
whicn will permit price brakes to
.

contraction

traceable
brought
of
bank

banks to seek

the marked civilian shortages that
the long war period caused. This

goods

begin spending more feverishly,
passing bank deposits and money
from hand to hand without too

goods or services pro¬
duced by a seller are exchanged
for the means of buying other
goods and services.
Production
processes

thus creates

the

Were

A AAA.-'"

sufficient period of time to create

applied..

Today bank deposits are gen¬
erally insured. This fact will pre¬
vent the type of bank runs which,

prices; but such purchasing will
nardly be of such magnitude nor
should it deplete the market for a

was

liquidation

credit.

remaining source of possible
.nflationary pressure is a more
rapid tempo, of private spending.
The price level has not risen to
the heights
logically to be ex¬

country is
fur¬

the

sector of

ihe government

periods

boom
forced

about

the armed forces may offer some
stimulation
to
production
and

the

application of
the cost-of-living formula to the
United States Sieel Corp. would
not result in any further increases

since

the

During

scheduled the
flow of materials so that plants
could be sure of a given supply.
Now industry must carry inven¬
tories adequate to protect against
all interruptions of supplies.
With the supply of money and
bank credit no longer increasing,
»var

strict

materials.

Conclusion

Such is

the picture as I see it.
I believe that economic influences
to end the inflationary spiral
in

operation

will end without the

cussions
and

that

1929.

are

that the spiral

and

severe reper¬

1920

characterized

'AA-" aAA-AAA'

vA'A;A•A. A

Directors Elected for

Chicago Stk. Clearing Corp.
CHICAGO, ILL.—At the Annual

Stockholders, of

the

Meeting

With

which

are causing
repurchase of
privately held government obliga¬
tions with resulting pressure on
bank credit. Sale of savings bonds

will likewise tend to

bonds.

cause

government is

reduc¬

lars.

press

credit

production and the elimination

dol¬

prices. Much of the existing
agricultural price support legisla¬
tion expires Jan. 1, 1949.
It is

being

now

understood that
some

the

past two years in¬
creased
by
approximately
the
amount that government deposits
decreased, this policy of rapid
expansion has now been halted
and pressure

may

However,
not

accu¬

Perfect bench marks do not

which

determining

the

level

inventories become

sive.

legislation of

drafted and
some
form.

present

pressure

indications

high

price

level
program in face of 'the
of world production to¬

presage

support

ward lower

is being exerted sys¬
tematically to prevent the financ¬

ing of excessive inventory
mulations with bank credit.

new

being
passed in

sort

prices.

;

cated

''n.

•

exces¬

increases

ductivity.

labor

pro¬

•

large sector of the economy
time when other industries

have

been

with

the

Future Declines

For several years the public has
some jitters concerning a
possible sharo recession when the

consumer

...

evinced

price level finally halted its
ward

clines of 1920,
still
of

fresh

may

1929, and 1937
the minds

Because

us.

up¬

The precipitate de¬

sweep.

these

are

many

fears

be worthwhile to point out

that the economy of

importantly
prior

from

today differs

that 'of

these

industries

Generally speaking, some of
manufacturing pipelines, ac¬
cording to reports, have been
fairly well filled.
Consumption

Monetary and Banking Changes
*

goods
a

have

largely shifted

strong sellers' to

ket,

are

the

from

cautious
verge

mar¬

of such

much greater than are wartime a shift.
'
«
requirements. The wide diversity
Textiles, clothing,
hides
and
P*. of products offered in peacetime leather,
shoes, and, other wearing
caiises larger inventories, as does
apparel are now definitely in conthe absence of governmental allo¬ .siderable supply. Purchasing for
•

•

■

•

Sn-\:

>'•

Since 1929

;

For example, it may be well to

point

out

changes

certain

which

fundamental

distinguish

surpluses to be shifted' with a lack
of
disturbance
unparalleled
in

previous
be

noted

which

1929.

existed

ments

1920

Such comparisons

interest because

of the

boom periods.
It is to
that these adjustments

place while both busi¬
and individuals, with, of

have taken

notable

exceptions,

maintained relatively strong

have
liquid

positions—positions which always
facilitate orderly adjustments.

Chicago Stock Clearing Cor¬

poration, wholly owned subsidiary
of The Chicago Stock Exchange,
the

following

James

Directors
were
ensuing year:

Raymond'

Day;

Day; Thomas L. Dowd, Clement,
Curtis & Co.; Norman Freehling,

Freehling, Meyerhoff & Co.; Glenn
L. Fornell, Merrill Lynch, Pierce,
Fenner & Beane; Robert H. Gar¬
rett, Northern Trust Co.; Edward
J. Jennett, First National Bank;
Harold I. Kramer; Herbert Levy,
Paine, Webber, Jackson & Curtis;
Arthur G. Lilly, Paul H. Davis &
Co.

",■•; X;:V'AAA' ;:A ;;'AA.AIAaA
Garrett A and

Mr.
are

Fornell

Mr.

newly elected members of the

Board.
At

A
initial

the

meeting

Board, the following
reelected 'to
year:

serve

the

officef5^We]p2

for the coming

-A'? AA:>

Harold

Kramer,

' -J*
jVtJ-Ii":
President;;

Raymond M. Day, Vice-PresidentGeorge A J.

Bergman,

Secretary;

Walter R. Hawes, Treasurer.

Miss

Tortorell Wa3
appointed Assistant to the Presi¬
dent, and the following were ap¬
pointed to serve as the Executive
Committee: Herbert Levy, Chair¬
man;

Agricultural Differences Since ?

for the

elected

Evelynne

Arthur G. Lilly; Harold I.
/A '
;A
i <,

Kramer.

1929

the

present bank credit situation from
those

many

justments have enabled inventory
situations to be adjusted and labor

nesses

periods.

positions to more normal' pros¬
pects while other industries were
sustaining
the
postwar
boom.
These industry - by - industry ad¬

course,

Other Consumer Goods Factors

have
already
American
industries,
and
those
have
adjusted
their

filled

been

catch'ng up
shortages.

rapidly

war-created

pipelines

Supply

Brakes

the
ex¬

Peacetime requirements for
inventories in manufacturing are

the wage rise must level off and
that future rises must be predi¬

above

are

ent

policy

System, is likewise conservative.

for

prices

ties; consequently, artificial con¬
trols do not forecast either higher
prices or the maintenance of pres¬

Although private deposits in banks

ist

Present

support levels in major commodi¬

followed by the banks, in coopera¬
tion
with
the Federal
Reserve

during

areas

war

ties.

■

The

war

losses, agricultural produc¬
tion will fast replenish the de¬
pleted world stocks of commodi¬

longer bidding

for'goods with printing

other words, the

return

tions in bank holdings of govern¬
ment

the

and

are

substantial part

isharpness-of' the readjust¬

following the 1920 arid the

One

ference

factors

the main

between
in

Co.,

120

Wall

Street,

New

York

City, members of the

have held their debts to much

New

York

Stock

the

Farr & Co. to Admit
Farr

present boom and
bodies is that farm¬

those in'past
ers

points of dif¬
agricultural

the

conservative

past

levels

and: hence

than

their

credit

admit

Emmet

nership

Exchange, will

Whitlock

July 1.

part¬

r.AA A

Volume

167

Number 4710

Our

THE

Reporter

COMMERCIAL

Governments

FINANCIAL "CHRONICLE

(Continued from page 15)
price and wage control
and rationing of consumer com¬
whether

By JOHN T. CHIPPENDALE, JR.

modities
Prices of government securities gave more ground as investors
and traders continued to make preparations for the coming offering

would

workable

be allocated according to the

may

needs

the

Government

and

Let

Without the patriotic
fervor existing in wartime there

Number Two,

light volume
because those interested in the government market , seem to prefer
a
sideline position until there is clarification of the effects of the

$14 to $15 billion and that

impending financng

nomic

Savings Bonds.

Quotations

lowered

were

on very

prices and yields of Treasury obligations.
Bank investors have been inclined to move into short-term issues,
whenever it has been possible to do so, without giving away too
much in the longer term obligations that were
being disposed of.

upon

Traders and cktalers that

are on the heavy side in the more distant
evidently letting these issues out, when sizable bids
have appeared.
It was also reported that offering of the longer
term issues were being made by some of the "professionals" at quo¬
tations that were under those generally prevailing in the market, v.

maturities

are

...

might

lead

black

combination

increased'

social

and

offering of
Savings Bonds has taken the government bond market for a whirl
on the
downside, with some of the ineligible issues so close to pegged
prices, that the monetary authorities may end up on both sides of the
market, so to speak....
:
'/!,
-v:''v

return

the

omies will be effected in the other

expenditures of the Federal Gov¬

that

evils

number

services,

would

ate

the

volume

labor

such

men

further

ernment.

that

the

accentu¬

shortage and hence
available

of products

consumption.

consequences

tirely

different

outlined.
the

will

from

eco¬

en¬

those

just

Before March 17, when

President

would

the

case

nomic

the

tax

"declared

that

increase

necessary * to

reduction

and

were

the

Euro¬

Program

Recovery

pean

laws

passed,

seemed evident
readjustment in the econ¬

that

should

making.

how

omy

the

country

was

the

necessity, be left to the military

A sharp decline in prices
of farm products had taken
place.

advisers

Business in

tures

be.

This

the

must,- of

government.

consumers' goods

some

increase

On the

tutional investors,

in order to raise money.

wouid be used to support prices of outstanding marketable ob—
ligations, will not help cash resources.
\

some

taken

for

What

needs.

the

the serious inflationary condi¬

tions

already

penny

spent for military

layman

ask, however, is that in view

may

The funds that

industries, • such as textiles and
shoes,
etc.,
became
spotty.
In

other

hand they may be buying government securities

one

in the open market in order to stabilize quotations, while on the
other hand, the Treasury will be selling Savings Bonds to insti-

•

granted that
military security comes before all

prevailing,

every

purposes

be used where it will do the most

MISSED THE BOAT

Timing is of the utmost importance in any financing operation good and that all possible econo¬
mies be made in the other expen¬
the opinion that the monetary
ditures of the Federal
Govern¬
again missed the boat in makirig an offering
of Savings Bonds at this time.
\
The market was recovering nicely ment. ■ '
from heavy liquidation that had been
It
should - not
be
overlooked
going on in long-term securities
iand there were signs of
that military expenditures of $20
strength in the more distant maturities.
Confidence was returning so that investors were
venturing into the billion and more per annum would
higher income securities.
.t Talk of higher short-term rates stopped have an entirely different effect
ithis uptrend, but before the market knew what was going' on, the on the economy than the rearma¬
Treasury decided to keep near-term rates low.... Naturally this pushed ment boom which started in 1941.
and there is considerable support for

"authorities may have

durable

consumers'

lines,
refrigeration,
supply began to catch up with de¬
notably

electric

mand and inventories

rose

rather

sharply.
Moreover, the country's
productive capacity was increas¬
ing and slowly but steadily the
economic void created during the
war
was
being
filled.
Under
-v

those circumstances, and particu¬

prices of the larger income long-term bonds
'out

the

blue

increased

came

reserve

banks in New York City and Chicago.
for the longer maturities. .•*.«*'

Almost

top of the larger

its equilibrium.
V

requirements

soon,

since the Treasury

to be well supplied

seems

The largest peace-time surplus in our
to indicate an urgency for new money..

MARKET ON THE DEFENSIVE

To be

come

with

history does not
*

and

not

a retarding, influence
the forces cof; inflation? Will the purchases of $1,000,000,000 or
slightly more of Savings Bonds bring about lower wages or prices?
Will it stop the demand for real estate or installment loans? It
has,
however, put the government market definitely, on the defensive and
this, could result in purchases again by the monetary authorities of

will

down

support

levels.

again scared that prices

This

could

bring in

sizable

liquidation.

financing by the Treasury at

favorable

the

later date,

would

market is anyone's guess. %
followers of the money markets who
stronger technical position' which would have
come about in the near
future, there would have been less effect upon
prices of Treasury obligations, if the new financing were undertaken

Nonetheless, there
believe

that

with

government

are

many

at that time....

* 1

MORE LIQUIDATION PROBABLE

Bids

that

not

too sizable amounts have been
appearing from
savings banks in the ineligible issues, as they moved down in price.
v ; It is not expected howeved that this
interest will broaden until
there are signs of price stabilization.
Insurance companies have
.

been sellers of Treasuries in order to make
ments and corporate bonds.
/..'.More

room for private
place¬
liquidation is anticipated from

these institutions, w. The corporate bond market is
while the municipal market continues to

pile

Both of these

are

having

influence

upon

too

healthy
inventory.?.

none

the government market.

It should also be remem¬

the

that

the

price

and

wage

far
greater than in
1941 and the
means
of payment, in the form
of demand deposits, currency in

debt is

public

now

circulation, is. vastly larger than
in 1941.-'
*

'V ';v.v •'
'it May, therefore!;'$0 concluded

that

Whether

different

level today is quite different from
that which existed in 1941, and

upon

to be

seem

bered

;obtains from the sale of Savings Bonds have

are

conditions a sub¬
increase in output does

results.

outstanding obligations, because holders

country

production.

boom could have entirely

•

inflationary forces have been strengthened by recent

sure,

the

increased

the

under

first

assumption,

military expenditures ex¬
considerably the amount at

i.e., if
ceed

envisaged,

present
will

have

than

have

either

drastic

we
inflation

witnessed

rigid controls will be
imposed on the economy.
The
effects on the money market will
depend
on
whether
those
in
charge of the country's economy
will prevent the present infla¬
tionary conditions from becoming
aggravated or whether drastic con¬
trols
will
be imposed.
In the
or

now

very

first case, it may

be expected that

Congress will grant the Board of
Governors the power

to raise re¬

requirements. It might also
expected that as prices and
wages increase the demand for
working capital on the part of industry will increase and hence
money rates will go up.
But even
serve

Oscar H.

Riggs Joins f Red Rock Cola (Conn.)
Laird, Bissell, Meeds Stock Offered by Baron

under

the

worst

circumstances

^Laird,- Bissell & Meeds, ' 120
.William
S.
Baren
Co., New repetition of what happened in the
Broadway, New York City, mem¬ York, on June 23 publicly offered
money market in 1920 is entirely
bers of -the New York
Stock Ex¬

change,

announce

that

Oscar

Riggs has become associated with
the firm.'
vlv_ ..'v;.
.■

Mr. Riggs
ner

was

formerly

part¬

Dreyfus & Co. and its pred¬

ecessors

and

partner in

prior thereto

Kidder

was

Co.

and Faroll Brothers.

the

market

320,000 shares
10 cents)
Red
Rock Cola Bottling Co.
Connecticut, which is engaged
common

stock

(par

of
of

in
the manufacture, bottling and dis¬
tribution of carbonated
The
to

the

net

proceeds

working

capital

payment

penses.

beverages.

will
and

added

used

operating

for
ex¬

out of the

With Camp & Co.

the other hand, the legis¬
lators
should decide
to impose
controls on the economy, then un¬
If,

restrictions would be
consumers' and real estate
It
is also possible that

doubtedly
put

011

loans.

Congress might grant to the Board
Governors of the Federal Re¬

to the Federal
Open
Market Committee addi¬
Joins E. F. Hutton & Co.* tional powers to regulate quali¬
(Special to The Financial Chronicle) "*"
tatively the flow of credit and of
LOS ANGELES, CAL.—Charles capital.
Under
these
circum¬
F. Crary
has-, become affiliated stances^ no particular change in
with
E.
F.
Hutton
&
Co., 623 the money market is likely to
South Spring Street.
take place since credit and capital
serve

question.

System

further

reserve

require¬
Chi¬

and

of 26%.

■,

(2) An increase in the certifi¬
cate rate from IVs to 1%%. While
these

could

measures

have

psychological effect 0x1
medium- and long-term govern¬
ment obligations, this long-range
effect would be insignificant.
The net effect would merely be

narrowing

spread

and

the

certificate

money rates, there was justi¬
fication^ for assuming that the
spiral of inflation had reached its

peak and that
ward

moderate down¬

readjustment
was
:' ' •'': " '..

way.

The

announcement

under

the

strenghened,
ERP

the

and

passage

of the

reduction

tax

undoubtedly would be follbwed by an increase in the dis¬
count

and

rate

further

rise

over-the-counter rate, but

the

in.

these,
would

also

cases

increases

the

moderate

and

would

still

leave the country with rela¬
tively low money rates.. Another
development that might be ex¬
pected is a moderate firming in
rates

on
corporate
obligations.
particularly is likely to take

This

place after
panies and

the

insurance

savings

com¬

banks

have

invested the proceeds of the sale
of their government obligations.

substantial cushion

decline

civilian

against

any

demand

that

might take place and that the
adjustment
for

Hence,

postponed
period of time.

business

activity that

may take place. In that case while
it may be necessary to!- allocate
certain

basic; faw, materials there

will be

controls

need to impose drastic
the

over

economy

whole.

Although government ex¬
penditures
would
increase
and

decline, the deficit of the
budget under these circumstances

revenues

not

large. In fact,

very

the

Treasury might show a cash
surplus derived from the rev¬
of

various

the

agencies and from

government

the

excess

sales of Series E, F and

G bonds

redemptions. Thus, it would
for the Treasury
to borrow again in the open mar¬
ket.
On the contrary, the sur¬
plus cash could be utilized to re¬
deem maturing obligations held
by the Federal Reserve Banks,
thereby reducing the credit base
of the country and preventing a
further expansion in the volume
over

unnecessary

bank; loans

and

investments;

Under

these circumstances,
and
particularly if commodity prices
out, there would be
no particular need for new legis¬

tend to.flatten

lation
the

increase

Board

Federal

trictions
The

the

powers

Governors

ket will not be

the

months

and

great
three

last

was

four

moderate

-a

increase

in yields and a

corresponding de¬
cline in prices of corporate ob¬
ligations is likely to take place.
Conclusion

;

The

increased

ditures have

military

created

expen¬

of uncertainty in the

omy.

Only

the

large '

should

these

be.

fact

should

that

military

econ¬

experts

sound opinion as to

express a

how

ele¬

new

ment

the

expenditures
time the

same

while

not

overlooked

of
the

assure

civilian boom could lead either to
acceleration

;

of the

spiral be¬
tween prices and wages, which in
an

the

would be

end

bound

lead

to serious economic

difficulties, or
the imposition of rigid controls

and additional tax burdens. None

of these developments

is desirable.

Hence, if military expenditures
must be large, it is of the utmost
importance that the government
a policy of extreme econ¬
in all other fields and that

adopt
omy

rearmament be handled in such
manner as

the

strength,

Military

economy.

obtained

not to unduly over-tax

at the

cost of

infla¬

tionary boom, followed by a seri¬
ous depression, would provide no

States.

security to the United
y\

military expenditures do
exceed $14 or $15 billion and
carefully handled, and par¬

If the

not
are

economies
the

other

government

are

achieved, this factor, plus the re¬

consequences

activity

the

is already at a high level. Em¬
ployment is plentiful, wages and
prices are high and there are still
shortages in many lines. To add a
miltary
boom
to
the
present

credit.'

activity, even
before the added military expen¬
ditures are beginning to be felt,

branches

and

keep employment at
to

structure

Business

for further re-

economic

business

economic

the

country.

ticularly

only moderately increased mili¬
tary expenditures, ;t hOrefore,
would be to prevent a decline in

materially increased
nt
outlays
will
strengthen the military might of
the United States, they could at
the same time materially weaken
re a r m ame

System over the

Reserve

market

money

and

been
com¬

decline

enues

has

and
savings banks are
merely confronted with the task
of investing current income, then
the pressure on the corporate mar¬

can

if military expenditures
are
kept below the $15 billion
mark, j the only important eco¬
nomic consequences will be that
they will tend to. cushion any

need

operation

panies

re¬

again

was

indefinite

this

bill

changed the business outlook ma¬
terially.
It became evident that
these developments would provide
a

to-

during

President that the military might
of the country would have to be

in¬

rate

Once

the moderate increase

be¬

long-term

obligations.

government
crease

the

short-term

tween

completed and the insurance

and

moderate

credit

ca¬

boom

possible, and hence
the imposition of a rearmament
boom on top of the existing civilian

appear

rises in wages and prices as well as increases in installment and real
estate loans.
.;. But will the amount of funds that the
Treasury

plant

present

stantial

cash?

idle

resources

caused

Under

unemployed

rearmament

The

all

had time to regain

financing should

still had

therefore led to the full utilization

the

came

considerable

and

This raised the question among followers of

;

the money markets as to why the new

number

pacity,

„

reserve

large

This checked the demand

^ offering of Savings Bonds, before the market
•

At that time the country

sharply. ;■'?■. Then,
requirements for member
up

the

larly in view of the tightening of

cago
Federal
Reserve
Districts^
thereby bringing them to the limit

ments of the New York

military expenditures and before

layman is in a position to
large military expendi¬

new

tell

econ*-

eco¬

(4) Finally, huge military ex¬
penditures, particularly if accom¬
panied by a substantial increase
in

namely, that mili¬
tary expenditures will not exceed

the

development entails.

and

reserves

rationing

with all

market,

for civilian

DOWNHILL
This

serious danger that

lowing:

(1) The possibility of

consider assumption

us now

market, briefly, is the fol¬
■
;

money

the national economy.

peacetime.

(2773)

prices,

high level

large

national

duction

taxes

merely cushion

and

any

cline that might set in
the year. The

ing

the

will

ERP,

material de¬
later

responsibility rest¬

government

and

the

Congress is exceedingly great be¬

f PORTLAND,

ORE.—James

Renton

has

staff

Camp & Co., U. S. Na¬

been

added

tional Bank Building.

the

income.

The

quences
can

that

also
one

monetary

such

visualized.

might

conse¬

development
The

expect

most

the

cause

under present conditions

rearmament

entirely

boom

different

"TV

would

have

effects

from

those which developed in 1941.

THE

(2774)

isn't good. The international
possibilities jammed behind

Tomorrow's

much

side

the

pic¬

Its outlook

inflation.

few

■

the

clear that

great

the

flop

New

the

win

sources
r

Truman.

What to do about all this
sit

still

sounds

and

watch.

seem

run

Last week the market went

and

everything looked
higher. This week the picture
has reversed slightly. It isn't
that they don't look higher as
much but they have kind of
up

driffpd
ariitea

from the
away irom tne tons
tops.
The bullish talk still persists

.F°r

ble

not

ago.

paper.

Thirty-Year
Gold

...

This

feeling

translated

Fund

issued

about

t much

one

can

loan

26, 1923, that
$1,333,300 principal amount of the

and

qui- date.
The bonds drawn for redemp¬
escent. True, its longer term
tion will be paid at the office of
implications haven't changed.
the fiscal agents, J. P. Morgan &
They're still higher ; but the Co. Incorporated, on or after July

because

And

short

have

tions

long

term

bearing
picture.
a

range
if

indica¬

the

drawn

bonds

will

cease.

the

Congress to
reciprocal tariff

2Vi% Equipment Trust.
Certificates

ago.

Due each October 1,
from

October

and April 1,

1948-April

Philadelphia Stock
Exchanges, will on July 1 admit
to partnership Louis Gerstley, Jr.,
Thomas J. McCann, Joseph Obern1orf,
Bernard
H.
Tobias,
and
Mr. Tobias

is in charge of the firm's trading

Members
stock

department; Mr. McCann is stat¬
istician.

Exchange

DURHAM,
-

New York Curb Exchange <Associate)
San Franci'co Stock Exchange
-

Chicago Board of Trade

14'WaIl Street

Teletype NY 1-928

Private Wires to Principal Offices
San Francisco

Monterey
,'£■

—

Santa

Oakland

—

Barbara

has

and

being

and

with
has

integrity
been

and

power

lions

incompetent

and

men

blood.

and

ropeans

have

women,

rich

world, Eu¬

Asiatics

.facing

are

things. It has earned the
right to greater things. It has the
takes

serve

ask

the

when

only to

greater

serve.

American

measure

let

what

serve

r..

Republican

mised

rebuke

us measure

Americans should

Congressmen

to free

pro¬

American economy

from

regimentation, and they did
it. They restored both the fact and
the good name of American free
enterprise.
:1
I

Republican

over

Congressmen

pro¬

mised

W,e

fought
from

Japan is crushed
the

make

attack

Kuriles

dominates

has

been

C.—William
elected

and

Mr.

1947.

Croom
He

was

Vice-

joined the firm in
formerly associated

MacDaniel

Lewis

spending, and they
the

they

three

outcries of

cut

and

northern

Manchuria

billion

dollars

Pacific Coast.

Co.. of

eral income

They did it

from the American home.
Now the young men who won the
war

and

war

face

truth

brothers

younger

call to

new

:The

their

is.

three Presidential

vetoes.

one

arms.

that

The New

Greensboro, N. C., and with Kirchhofer & Arnold, Inc., of Raleigh,

Dealers opposed the
the false ground that

N. C.

in the

tax
more

cut

money

people's pockets would in¬

make

work.-

Republican Con¬
voted funds for foreign

gressmen

relief and
wanted

because they
spread of

recovery

check

the

Communism and to aid freedom in

Europe.

•,

•

Deal

Republican
the

State

President

will

Department

with

At Teheran and Yalta

New Deal President agreed to

other

New

Deal

President

con¬

firmed the Soviets' domination of
the

satellite

countries

and

their

sole

Their futile

two

policy of

Communist

appease¬

Russia

set

of Polish freedom

centuries and paved the

way

for the destruction of the Repub¬
lic of Czechoslovakia.
Their po¬

litical maneuvering with the Pal¬
estine issue, their failure to insist

the ' fulfillment

standing

pledges,

which

was

culminated

and bloodshed.

What

will

wholesale
ment?

in
-

history

record

say

bad

long
tragic
war

\
of

of the world.
„

old and tried

It is

Republican tradition that Ameri-.
influence

can

shall

America

be felt wher¬

has

this

leeitimats

duty

in the world outside our
gates. It was Lincoln's Secretary
of State, William H.
Seward, who
held off European intervention in
can,

Civil War.

was

Republi¬

Seward, who reaffirmed

the
Monroe Doctrine in Mexico where

milian

paper

Seward

seated

throne.
who

MaxW
It

saw

was

our,

great stake in the Pacific- and who
purchased Alaska and sought the
annexation of Hawaii.
v >-;}-

It was another
Republican Sec¬
retary of State, James G. Blaine,:
who originated
Pan-Americanism
and

who

created

reciprocal trade.
It
and

was

the

Hawaii

policy

Republican President-

Secretary of State

who made

part of this nation andoutpost of defense in the Pa- '
cific. It was a
Republican Secretary of State John Hay who open- ed the doors to
China. It was a.
an

Republican President and Secre¬
tary of State who tried "to check
Japanese aggression at its outset"
in 1931.

These

judg¬
History, will say that the

di¬

our

every corner

our

New

Russia's domination of Poland and
much of China. At Potsdam, an¬

farce

home, and they did it.

Republicans

measure.

Lincoln's

of-the-house

American

tion in full

helped to create the United Nat
tions, and have done their best to

take Berlin:

upon

every

Republican party in Con¬
gress has supported its own prin¬
ciples of international coopera¬

foreign despots had

They promised to increase
the take-home pay of the headin

; •••%

The

diplomacy threw • away victory
long before our fighters had won
it.
It permitted the Russians to

ment

taxes, and they did it.
over

;■

•

ever

We fought to remove the threat

back the clock

They promised to reduce Fed¬

abandoned waif, forsaken
during the New Deal's tryst witn

plomacy respected in

liter¬

the power and position
endanger
Alaska
and
the

bu¬

from

—that

personnel who will make

Korea,

and

ally has
to

two

between

New Deal bureaus.

President of First Securities Cor¬

with

Over

the strength of America.
adopted the Atlantic Cnarter.

man

but Russia holds

it.

and

simple and clearpledge
a lasting peace based
justice and freedom and • to

Pacific

right to occupy Eastern Ger¬
many and Eastern Austria.'
:
:-

did

1943

work for

United States.

America

the

to balance the budget, and
fhey did it. They promised to re¬

Federal

platform in 1944.

our

publican foreign policy is to elect
a
Republican President of the

car

cafe

say

deserve. But

be served.
i

people:

fail, give

for

itself

ing to tyranny because they
no hope in
liberty.

trusts

lesser

Civilization

lind

Conference

preserve

con¬

foreign

•

Our next step to save the peace
We fought to end
dictatorship:;
and to achieve the. goals of Rer
but despairing peoples are bow¬

House.

steward

;

foreign .'policy.' Thai,
creater at the Macr

Communism.

cold

been

...'

was

to
on

re-

efficiency.

faithful

kinac

willingly

wasted

the centuries have been leaders in
years ago,
competent culture and progress.

its

program

policy.

govern¬

the

administered

reaucrats

Sacramento

Fresno

Croom

poration, 111 Corcoran Street.

New York 5, N. Y.

COrtlandt 7-4150

which

are

duce

1956

Schwabachsr & Co. First Securities
Corp.
York

Senate

American

and

despoiled of their property,
robbed
of
their
liberty, driven
from their homes or murdered in

promises then.; And it
kept those promises.:

Wm» Groom V.-P. of

New

treasure
gave

The -blood

elect

made

PHILADELPHIA, PA. — Gerst¬
ley, Sunstein & Co., 213 South
Broad
Street,
members
of the

1.35%-2.65%'

yield

restored

wa~

the

Admit New Partners

Laurence A. Wachtel.

peace.

America.

New York and

Illinois Central R. R.

the

fused

slowly regained its influence
Congress. Finally, two years

both

very

Today, tonight, America is los¬
ing

have

Republican party • has a
definite
program
for > an

It
in

stuff

Gerstley, Sunstein to

The refusal of
maintain the

15, 1948, after which date interest
on

gave

occasions when

rare

Definite Foreign Program

The

confirmed in

dom, but almost a dozen nations
have lost their freedom, and mil¬
elect;

government, it won repeated
elections in those states.

ed.

Losing the Peace

governor¬

ships of many states 10

On the

Republicans have been consulted,

ex¬

crumbling in nations which

Jan.

high time to make this fact

stop

ties.

recaptured the

clear.

long ago, that the
slavery is to build
freedom, That is what we

5J/2%

propose to do at home and in the
world.- • •
' ' -' '

The Republican party began its

clean

party launches the ship
salvages the wreck.

one

years

Return of Republican Party

giving

is that

and the other

been

meeting of the consequences. The
New Deal's idea of bi-partisanship

We learned,

presidents.

return

Teheran,; Yalta
or
■'r
1i
bi-partisanship shares the
making of decisions as well as the
'

prin¬

founded

was

way

cannot

avoided,

line. But it

founded

not

Deal

ciple, too.

Republican party has
right to return to the

was

New

disaster

world.

half

indictment, .by

check the spread of
slavery in the
It will vindicate that

nor

been

master

and

starvation.

say. crued interest to the redemption

shorter term outlook is cloud¬

The

party

market which is

has

blunder

government of the United

sheriffs.

action, or rather bonds have been draw by lot for
it, as reflected in redemption on July 15, 1948, out
mmnarativelv
comparatively Hear! tane Iof moneys ln the sinking fund, at
clean tape. 11(J0% of their
par value and ac_
isn

years

it back to the county

the lack of

There

the

Communism

Real

century ago to stop
slavery in America,
It vindicated that
principle. When
it takes office in 1949, the heart
of its foreign policy will be to

did not stay there. The Republican

into market

a
a

two

with

socialistic

Potsdam.

•

ment in small cities and communi¬

under

Bonds

control

the

escapiedouble-taik;
about a bi-partisan foreign policy.
The Republican
party was not

Congress.

Loan

External

Sinking

contract dated

fringe

govern

The

this

The Republican Party was cre¬

Presidency. ■
0:V■'■'- '
'
The Republican party's vitality
and integrity w£re shown again
in those years when defeats drove

necessarily at any
those of the

its

lunatic

Europe.

in represen¬
r

Communism.

Communism

sted nearly a
the spread of

States.

with

speaking about the political ■ Ol
KBOGITIpIIOII
picture there is considerable
Republic of Cuba, through Reinmore
disquiet in upper brass *ldo Fernandez Rebull, Consul
than vnii read ahnnt in the General
of Cuba- ls notifying
man
you read aoout in tne
0f

that

earned the

n*JA1MM|:AII

tl0iders

For

Gllbail Bonds DraWII
r-_,

The

80th

faith

owe

tative government.

cluded from the executive branch

...

buying that qp- Chronicle. They are presented
rea- those °f the author only.]
the political pic- ^ .
n
.
n

office.

people

the

It has restored

of crackpots was
competent to hold responsi¬

return

*The views exPressed in thi8
coincide

great debt to

Republican
party was out of the control, of
Congress. It earned the right to

—Walter Whyte

time

vote

tigations uncovered the scandaie
the Meyers aviation contracts
and the Pauley grain deals.
: present
American

today is

Henry Wallace and.
catching compromises
engineered by Harry Hopkins. It
reached its tragic climax in those
years when we supinely suffered
the

Republican

The

with

compromises
preached by

Party

■

•

with

continued

group

neither competent to

;

ar(icle

Republican

•

•.,

face

ognition of the Soviet in 19d3.

;

Federal Administration. Its inves¬

to let others govern.
For
16
years
the

„

;

by the

harbored anything like the

never

your

the

stable

-v

•

That rendezvous began with rec¬

trie

record,

Deal

discredited

rendezvous

investment

war

the

Western

the lusty child of the New Deal's

second

which

'•

•

The cold

Congress re¬
lentlessly has exposed waste, inef¬
ficiency and corruption in the

ion.

More next Thursday.

1946

The

aries, and parlor anarchists with

profits.
resume of the stocks in

stimulation

tOO.

which the New Deal has disgraced
the party of Jefferson and Jack-

companies it, hasn't. One

ture is, for the moment, more
important than the tape. And

candidate

Democratic

motley collection of embittered
failures, back alley revolution¬

the list, I suggest referring to
last week s column.
.

awav

is that

New

now

never

smart

but the active

son

the

faults. The Republican party is a
human
institution.
But
it
has

from time to time,

partially protect

;

the

which

platitude. Yet
*
*
* ■
it's not easy to sit still while
If the market goes higher
people around you are doing your stocks will do the same,
things.
If it goes lower, the stops will
"

supporting
and lost a us

peace.

econ¬

America

upon

Europe,

were paralyzing American
produc¬
tion and recovery. They did that,

American people,
v >
Human institutions have human

add

The

So just hold on
£ keeping in mind the stops
is which have been given* you

This

whatever

nominated

That

For

Let

convention here next month must

thing to do.

Truman.

doesn't

imposed

burden

promised to correct the chaotic
conditions in labor relations which

they can't win if they drop

you've converted half your
warm|paper profits into actual cash,
inflation will be Adding to them at present
various

with

that

Summing

The market will open at ten
and close at three and

from time to time..

half, prostrated European

omy,

production, resulting

cut has given
enterprise, ir

can't

Deal

the

irom
tax

;

Indeed,

it up, it means
that additional buying for the
the
National
Convention.
time
being might well be
There'll be the usual talk and
postponed.
You now hold
the usual viewings with pride
about six stocks. They're all
and pointing to with alarm.
in
the black and
in some

ings about
sounded by

increased

and

Anything that happens this
week will probably be tied to

recent western invasion has made

ture.

high cost of living.

dying hope

Wallace.

v£ried, that

Sitting tight is good doubt if it will have any real
weight in the immediate fu¬
plan for time being.
if

Its

is, win without Wallace. Our an¬
swer
is, it couldn't win with

without them.

w.n

weeks.

permitted Russia to slash Europe

the American people to meet the

legitimate majority is now
proved by the fact that it cannot

never a

equally as explosive. Warn¬
ings, however, have been so
-

inept leadership of two Presidents
in

mar-

other

ture

for

Republican Party Program

crease spending and inflation.
We
11)
believe
that
more
When Wallace de¬ Republicans
parted, it begged him to return: money in the people's pockets ii
Henry, come home and all will be good for the peopie and good for
forgiven. The merry men of Wal¬ ihe country.
We.know that more take-home
lace were not fired. They quit.
That the New
Deal party
was pay is the first concrete help given

Whyte
if.

The

By WALTER WHYTE=

picture

difficulty.

Thursday, June 24, 1943

years.

many

•

;

CHRONICLE

(Continued from page

oitf stock market without too

Politics will dominate

ket

piece of legislation have
implications that can break

Walter

Says—

FINANCIAL

this

Markets

COMMERCIAL

-I

"
are

pot

the

marks of

timid foreign policy.
They are the i
wise tradition of a nation
in world-wide influence.

growing

Volume

167

Number 4710

THE

COMMERCIAL

FINANCIAL CHRONICLE

(2775)

Seward,
Blaine,
Hay,
Root,
Hughes and Kellogg—these were
-

the

makers

world

policy.

"<■ them
1

falsehood

real

Merely

blast
that

than

American

the

The

ment

world

■}

■ '> ■

■

American

....

the

prayer

did

the

Democrats

world wars, by

there

was

hate

but

war,

shall

tion

peace

tionships

two

Labor

but
for

welfare,
'truth

every
freedom

that

market

arms

for

that

;

human

The

present

labor peace by

America, in which

the

achieved

home

cipation
of

The

leader¬

Con¬

women,

opportunity, which have
equaled in the 6,000
the

enacting the Labor

world's

recorded

tion of

domestic affairs and

our

the

management
'relations.

inj

What

laid

foreign,

our

The President

choose here,

and the next

Republican Congress,
will proceed to deal
fearlessly and
f The Congress has voted a Euro¬
every
problem
pean Recovery Program because: concretely {with
confronting America. They will
it believes that the free nations of
meet the fundamental needs of
the world can grow in
strength
American farmers and American
and unity—so that

they

fend and support

is
a

de¬

can

themselves. This'

an expensive plan and we have
right to expect a real return on

investment—a real return

our

peace and security. It must not be
hnerely a- continuation of lendlease and give. ■>'•*V;"
'

Such-

plan : requires sound
? principles ! in; its#
administration.!
Certainly it should be no refuge
for fugitive payrollers from New
peal bureaus which have been
abolished by Republican
economy,
r

Above the administrator of that

for the conservation of

consumers

the fertility of our soils, for the
production and control of sur¬
pluses of basic food crops, and
for the- maintenance of the
pros¬

while.

people

perity and buying power of rural
America, which is always the ba¬
rometer

our

national prosper-

have

not

Republican Leadership

These

Republican President

rnd

the Republican Congress will deal

not

tered^!&methiiig
county board of ,supervisors under
the shadow of. a
corrupt political
machine,

Speed and efficiency

lutely essential

to the

European aid. We

our

are

abso¬

success

cannot per¬

manently support the world. Our,
task is to put the world on its

feet, and not
who

said

was

our

back.

support

world, is still only

Atlas,
the

myth.*r.~ ' y*

V The great but- limited
America

must

not

strength
myth.
It
built up at

constantly

and it must not be
extended
abroad.
Upon

home,

over-;

that

Strength depends the peace and
security, not only of the world,
but of the United States of Amer¬
ica.

The - New Deal administration
has-failed to preserve that strengthIt has neglected the fundamentals
of

defense,

despite

the willing
of billions by ; a
Republican Congress. • It has sur¬

appropriation

rendered

protection of the public health
without resort to the dreary and

medicine.

:
Republican, leadership will dis¬
charge, as fully as a great nation
can, our tremendous obligation to

our
as

veterans. We shall

the

New

achieve

Dealers

never

did

seek

veterans

new

and

has

sea

supremacy

neglected

America.

,We shall ferret out

guard

carefully

speech

and

American,

the
>thought

but

and pink
We shall
freedom of

•
of
shall

has

had

suggest

with

bomb

its fearsome

possibilities of world
offers hope for tre¬
mendous progress in our quest
for new sources of power, and in

destruction,

endless

The

results

disease.

war

;

inventions

our

the visible fruits

are

of American character.

But

na¬

tional character is made, of more
than material achievements.
'

We have built standards of jus¬
We have learned to live to¬

tice.

gether.

We have all

but obliter¬

ated the harsh lines of class.
have learned to respect

social
climate
which
has
per¬
mitted foreign exponents of Marx¬

princioles of efficiency and
which the Congress has

economy

atomic

expose

every subversive individual and
organization. We shall change the

sound

little

man¬

; every

the

and research

and air bases in two hemi¬

army-to-be.

produced

Republican leadership will carry
out the mandate of the people to
end the pampering of Communists
in

serve

Particularly the
nuclear physics, which

our

and drive out every red
on the Federal payrolls.

in .peace..

tunities to build happy and useful
lives.

in the airr
acquisition ism to bask in the profitable sun¬
shine
of ; publicity
while
they
spheres which ' are *■ essential to abuse our American hospitality.
our safety.
It disbanded an armyThe Republican
President we
in-being before ; it ; planned an choose here will -believe in the
It

be made

can

science of

greater oppor¬

accomplished

sample of what is
ahead. The inventions, the proc¬
esses, the formulas we learned in

1933,

constantly to give all

have

be just

kind

by voiding
or
trimming our payments to sick
and disabled yeterans. Rather, we
shall

And all

seek,

economy

and faith.

energy, courage

war

Its hap¬
Its des¬

therefore, expect of

honesty
to

and

■

itself?

three

our

personal

influence,

integrity.

The

true

it
its

through

ability wherever they

virtue and
may

be.

Our Republican leadership will

strengthen the character of Amer¬

as honest men
their accounts, to make no
promises it cannot keep, to keep

that

has

material

made,

with

and

moral

make

America,

ever
before,
opportunity.

issue

sound

civil
to

truly than
happy land of

the
- *.

measures

storm and

keep it.

can

people, despite
stress, despite assaults

from enemies within and
have kept our Republic.

These three—national
world

of this

without,
'

sound

influence is the next
characteristic that the people have
a right to expect of their
govern¬

people's

Republican party.

one

great community of nations. Amer¬
ican

industry,
culture,
science,
commerce, and, in war, its arms,
have
profundly
influenced ' the
world
at
large.
Its
influence,
however, is and must be unselfish.
It must seek no imperial power

challenge that gen¬
of free Americans offer
Republican party and this

the

heavily

challenge
are

weary

laden

with

tyranny.
our

This is the challenge of
youth who ask a better chance

live.

This is the

true voice

;

Above
ness

all, the

enemy of happi¬
Peace is its first es¬

war.
,

generations
to

have

been

give their youth to the

our

avail, alas, to what avail

we resume

Have

mercy

the old futilities!

our

souls

should fail."
Peace

cannot

government.

Upon

kept

without

those

choseq

by this convention

must rest that
awful responsibility.

May

A nation does not live unto

character,

the concerns

convention. This is the
of rtien everywhere who
of war and

To bring that sort of character
to government is the pledge of the
Republican party.

America

and
are

erations
to

alone.

influence

happiness—these

;

God

vention

grant that this
this challenge

con¬

meet

vyith

truth and courage and vision.
God's grace, may we choose

B,y
wisely

and well.

and

foot

territory.

another

nation's

;

•,

;v;

True, the greatness of America
high expectations every¬

raises

Chicago Exchange Has
Four Texas Members
;

And—the ,>• influence
of
America must justify those expec¬
tations
wherever
or
whenever

they

legitimate. It must teach
by example fair dealings among
are

nations

and

between

nations and

their

people. America must not in
the future—as our present leaders
have

done

so
tragically in the
past—squander our influ¬
ence
in the support of reaction,
exploitation and tyranny.

recent

Our nation must count

can.

teach

the

miracle

It must

American

productive know-how wherever it
can.

It must join in all

efforts

common

destroy disease,

super-

CHICAGO,

tive

ILL. —The

Committee

Stock

Exchange

Execu¬

The

has

Chicago
elected to

membership:
John

where.

tinue to enrich the world.

the

American

"To what

char¬

ow-boxing

with

let

happiness are our reminder of
duty to build a better peace:

acter.

ment.

will

ours

hangs in the balance. Those boys
who gave their chance of life and

keep its accounts

keep

itself

and

grime and blood of conflict. The
happiness of another generation

It expects its government to tell
truth and
all. the .truth, to

will replace the New Deal's shad¬

liberties

The

asked

Its great institutions, public and
private, that have extended health,
science and education, must con¬

ica.
Its program will give new
meaning to the Bill of Rights. It

public, if

Two

the

free

We have, as Benjamin Franklin
here in Philadelphia, a Re¬

honest

/; v/.;/.

match

said

sential.. "

An honest nation deserves hon¬

those

will

America.

Does it cultivate the vir¬

est government

party.

•

This is the

■

are

marvels
windfalls of

work, of devoted service, of thrift,

can

the

fortune that gave us great natural
resources.
Nor are they the prod¬

inadequate .regimentation of state

power

tues of truth, industry and fair
dealing?\
;■
;V"'-'.. •.

No So¬

mere

Its

character,

people?

the

productive

people.1

very core of a government should

produced anything even rela¬
tively comparable.,

Will Do

The

its

these

spirit prompts him to
■:

happy nation.
But
keep that Republic safe.

;

has
What

worth

happiness.
We begin with character.

Communist government

all

true

man's

rights
are
the
marks
which distinguish our
Republic.
While that Republic stands Amer¬

nation is many men.
is the best there is

essentials:

an overpowering gov¬
They have taken place

under economic freedom.

cialist

For

character

Let us,

products of
ernment.

Those

charac¬

are

government

these

been

things

piness is their happiness.
tiny is their destiny.

laboratory and the inventor's attic.
achievements

icans

their cemented strength.

life of every American
has been enriched beyond com¬
prehension by the miracles of the
that

the

happi¬

vote, to travel

worship.

plant

Freedom to speak and
write,
and to worship

American

essentials

man's life

the daily

forget

that

Its

our

realistically with the problems of
plan, and above the Secretary of
housing, of the strengthening of ucts of a superior mind or race.
State, there is. crying need of a social
security, and of the. full They are the products. of honest
chief
executive who had adminis¬

ment.

The triumphal march of inven¬

not

three

means

// ;\\i;
Let this convention, eight score
can/well-be what the years
later, give our Republic the
expect of their govern¬
leadership it deserves.

These

of Alaska and Hawaii,
the threshold of statehood!

great

serve.

of a farmer to
and what he chooses.

ness.

while?

ter, influence, and happiness. To
be what we ought to
be, to count
as we
can, to enjoy what we may
—these, he said, are really worth

tive genius must proceed. In the
half century of my own lifetime,

Let

said

while in

years

territories

;;

things that make

ago,

down

glory.-^5;;

now on

the.

right of

to work where and

best

Freedom is the basis of

answer

can

right

when

philosophy of life.

never

the

effort

It means the

when he

history

resources

That objective implies the
right
a
man
to seek a full life and

norance.

party to this

our

life worth

Years

its

the

That

ago.

the

man or woman

Amer¬

spiritual leader answered this.

realize, to point out, that America
only at the threshold of its
material destiny, the foothills of

the

years

Aris¬

philosophy,

means

qualities that men have
to expect of themselves.

are

man's

fulness

have

find the true

can

best

right

It is for the Republican
party tc

its

answer

We
the

change which may come :■§ Our party and our government
all
the
people shall enjoy the
have been an effective
from labor, from
part of
management, or
prosperity,, produced by our free
that development. The westward
from the public. Whatever
changes
economy,, and 'which shall offer
march of progress goes on from
effective cooperation to free men may be made in its provisions frontier to
frontier. We must fur¬
eventually, this Act will stand as
throughout the world. A Republi-i
ther the expansion of
a proof of the
industry in
courage of its spon¬
can
President-will provide that,
the
West, in building a great
sors
and the willingness of the
answer.
He will provide it in the!
commerce in the Pacific, and in
Republican party to deal fear¬
honest and efficient administra¬
lessly ; Avith {every vital problem. promoting the prosperity and user*
for

What

what

grow in mind and spirit.
It
the right of a child to be
protected against disease and ig¬

aware

please all. That answer, in the
long run, pleases none.

openness

been

real start toward

well

2,000

is
of

and eman¬

question should not

freedom

virgin continent

education,

convention

ican people a right to demand
their government?

and agri¬
cultural and industrial
production
a
general distribution of wealth
and
well
being, a standard of

health and

the

principle.

question:

civilization,

seek—the

initiative

Americans

consideration of every criticism
of this law, and every
proposal

Republican

the

That

father

city wrote
Declaration of Indepen¬
dence—"The pursuit of
happiness."
into

It should seek—it should always
true
answer
to
this

anc

liberties.

preserve

are

•*<

what Jefferson in this

that

of our
American
economy. It was the good fortune
Americans to find a
country
rich beyond measure in resources.

em¬

Management
Relation'sAct
of
1947. The door is open—and the
must be open-rto the lull

all,

will

Communism

the

wrote

Republican party of 1948 in

this

rightful

the

system, of

The

always been the

our

totle,

people.

Upon i these

Republican
a

government.

ocean to sea¬
Unlike the single

trusted

Finally, the happiness of its
people is the supreme purpose of

the

energy,

commerce.

Supreme Purpose of Government

line to elec¬

power

neighbors, it must be
helpful friend.

through

Fascism, American parties
servants, not the masters

local

their

exercise

has

and

pro¬

door

v'i'S

sound

mass

greater America.

which

ship

high
continuity of

goods.

gress has made

.;
Our best answer to Communism
a

governments

Above

princi¬

are

big enough for labor, management
and ownership
working together

being and personal freedom under
Republican form of govern¬

will "be

cardinal

trical

President

our

radio, the

going
party

spirit

powers.

Republican

authority

new

the

shall restore to

state

principles we can build the ulti¬
mate temple of industrial
peace—

our

ment.

for

foreign

respect

Under
we

ployment, full protection against
monopoly in any form and a free

best

means

and

The

I-

world

and

should be the

channel

ect and control their government
A party is what the ether is tc

try to circumvent it
strategems or secret

not

cornerstone

present

its

and

vvhich the will, the hopes and th(
ideals of the American people di-

Constitutional
powers of the Congress; he will
never tamper with our
courts.

such

duction, health and security in

propagates the
economic well-',

concerning

life,

letter

with

will

Relations

employment, efficient

Our defense

rela¬

levels of real wages,

challenge

at home and abroad is not in

alone,

grow

the

ples of industrial peace

world-wide infection of false doc¬
trine. It grows upon darkness and

poverty and hunger.

not

economic

relations

challenge.

conven-

our

will

rule

Communism.; Communism is

builds

its

deals

does

many

Labor

avenue

must meet the

govern¬

when

Rather,

best will and

our

live

it took generations to
build mutual respect and
stability
on a basis of law.

war.

We make in this

With

of
has

by tricks

sver-sensitive

Republican President wil
live by the Constitution.
He wili

Meeting Challenge of Communism
.skill

day.

A political party

every

The

carrier,

real covenant for peace,

except

body of law

We not only
shall do noth¬

then

and

every

pursue

.peace.

solution

edge

very

remove

bureaucracy.

those between buyer and
seller,
lender and borrower, shipper and

you,

before

crying

economy

control.

peace.

ing to provoke

the

will

■

stition and intolerance. In

of People

payrol
parasite living off the taxes paic
by American producers; he wili
free the American
people frorr
the costly burden of the
New Deal

administration,

paralysis

can

Parties Are Servants, Not Masters

partment, agency and commission

the

which

whole world joins.
*
We shall not deceive

■,

Intelligence and firmness in the
right, as God gives us to see the
right, can yet save the peace and

/ answer

blundered
had

Deal

only

■

He will conduct a thor¬
examination of every de¬

ough

tragic failure in labor"
Again and again it has

national

the

business.

that

espoused.

relations.

Republican party proposes
the respect and confi-

diplom acy.

•

learn

New

has been

restore

dence

American

never

unregimented economy
strong, and only a strong
can
keep us. free.

the

threatens to isolate America.

emergencies other
plans to shackle and

new

can

Deal

Curtain in Europe and Asia which

new

regiment

recall

New

Republican
party is timid or provincial in its
foreign policy. It is the New Deal
party's retreat before the Iron

meeting

Rauscher, Rauscher,
Co., Inc.,* Dallas, Texas;
Wesley Hickman, Schneider,

Pierce &
J.

Bernet & Hickman, Dallas, Texas;
Wilbur E. Hess, Fridley &
Hess,

Houston, Texas; James O. Win¬
ston, Jr., Rowles, Winston, & Co.,
Houston, Texas.
"These are the first firms in
Texas to become members of the

Exchange, and all of them have
expressed

enthusiasm

about

the

future of The

change
tance

and

Chicago Stock Ex¬
the growing impor¬

Midwest

financial

mar¬

kets," James E. Day, President of
the Exchange said.
With

the

admission

members, the Exchange

of
now

total of 167 member firms.

these

has

& FINANCIAL

COMMERCIAL

THE

(2776)

CHRONICLE

export could have a marked effect suffered at Pearl Harbor. But it is
on the cost of living and set off
hard to fight Complacency in time
an
upward spiral of costs and of peace. That is exactly what we

Strengthening U. S. Economy
(Continued from page 2)
iceeded three billions. In wheat, ploited profitably at present eco¬
nomic levels—will be exhausted,
shortage of steel may limit our we produced about 850 million
at present rates of consumption,
attempt to expand our own econ¬ bushels per year, on the average,
within a generation. These metals
before the war; since the war we
omy. We are now allocating steel
to build 10,000 cars a month. Ac¬ have produced almost half again and minerals range from lead and

population has copper to vanadium and zinc.
We do have marginal Sources of
this goal, and 10,000 cars a month been growing, too, and our do¬
mestic demands for food have many raw materials indispensable
falls far short of the need. Our
freight car "population" has been been growing at an even faster to our industrial civilization. We
on the downgrade for almost two
pace.
possess great reserves q{ oil shale'
In the matter of food we have and low-grade iron ore, for in¬
decades. Today we have on hand
been very lucky, and we may well stance, which can be brought into
some 1,740,000 cars, about a fourth
less than in 1930. Better equip¬ take note of that fact. We have production when the richer sources
ment
and
increased
efficiency not had bad crop conditions over run out, and we hiust be fully pre¬
have made it possible to handle a really big area in the United pared for the day' when resources
the load despite the loss of more States since 1936; in every year of that kind are Our main reliance.
tually,

are

than half

not even meeting

million cars, but the

much.

then

since

amounts

strain of current

operations is well
nigh intolerable. As a result of The

But

law

our

have

record^

averages

had

what

production.
is

due

catch up with us sooner or later;
constantly breaking down and some day we are apt to have a
have to be scrapped or taken out crop failure. Certainly we can't
-of service for repairs. During .the count on a bumper crop year after
past year, we have, been barely year—the kind of crops, for in¬
able to ,hold our own and keep stance, which enable us to do as
the car supply from falling still we did last year and export 15
further.
The
number
of
cars million tons of grain while we
scrapped has increased in each also meet all of our own wants.
extreme age and heavy usage, cars

-are

month of 1948, and the excess of

going to the repair shops over
those repaired has also increased

cars

Fortunately, the limits of what
our

economy

can

are

Our production during the
went far beyond what the

war

practical leaders in

nation has great elas¬
well as great strength.
We $mow that by technological
our

and scientific advancement

we can

create new natural resources while
We

the

such

of a basic
steel, the infl-

case
as

impact

tionary

Conse¬
quently, the number of service¬
able cars declined in April despite
the monthly production of about
'10,000 new cars. There can be no
easing
of the present
critical
transport situation until we can
again build up the car supply and
replace the over-age and obsolete
roiling stock now in use.

portation system, which can have
such

influence

the mainte¬

prosperity, is not
simply our own domestic concern.
The economic and political future
nance

our

of the world as a whole is tied in

fighting allies. From 1940 through
the end of the war, our lend-lease
aid totaled $47 billion.
Since the
war the provision of aid has been
continued.

194-3

the

United

States Government,
and

through grants
credits, provided $5,600,000,-

000 worth of
the total

rose

foreign aid. In 1947
to $6,400,000,000. In

1948 it is estimated that it will be

approximately

shall continue to

help Europe with

all the intelligence and energy we

it with¬
recognition of the interde¬

possess, but we cannot do
out

pendence of that problem and the
problem of maintaining our own

panded national defense program;

done

the

recovery

would

the

equally

consequences

disastrous.

Inflation and Communism
•We

could

talk

combating

Com¬

It is clear that nothing

promote
present
a desire to try some
than run-away infla¬

effectively

dissatisfaction

system, or
other

one,

with

our

the public official must be willing
to work and work for all. If we

American to fight
for his government, we must give
in 1940 and 1941, against a back¬ him something worth fighting for
ground of large-scale unemploy¬
I have talked at some length
the young

ask

ment

plant

about the importance of conserv¬

absorbed

which
would work at full speed even if

ing our strength and our nationa1
resources in
the present critica1
situation.
The greatest resource

there

and

substantial

capacity,

but

somehow

were

must
an

idle

economy

defense

expendi¬

tures whatever.

that has
mentioned—the Ameri¬

all, of course, is one

yet to be

million

relief

Korea;

since the fighting stopped in 1945,
we
have spent more than $ I ¥2

billion

relief

those

three

democracy is to live

world,

we must generate
militant faith equal to the fanat¬

ical zeal of those who preach an¬
other ideology.

We need, above all, a soulsearching inquiry into .what our
obligations really are. The oppor¬
tunities are limitless; the respon¬
sibility is sobering. We must first
of all have plain, common honesty
in thinking as well as in deed. We
must not fool others and we must
not fool ourselves.

We must

have,

sound

judgment based upon a
knowledge of the experiences of
history and the realities of the sit¬
uation we face. Finally, we must
have

the courage to make deci¬

sions

and

the

them

out.

patience
we

to carry
not in this

great crisis exhibit those qualities,
the future is dark indeed.
If we
do exhibit

them, and add to them

the

which

faith

showed,

forefathers

our

in this country and
perhaps in the world may be fac¬
ing the dawn of a better day.

j7 Butler V.-P.
I ^

Of State Bank of

Bine Island,

lll.^;^;-V^V:

Bartholomew O'Toole, President
of the State Bank of Blue Island,

today announced the election of
F. Joseph Butler as Vice-Presi¬
1.
Simultaneously, Mr. Butler an¬
nounced his resignation as VicePresident of the
Chicago Stock
Exchange.
dent of the bank, effective July

sures

I think

During the war we mined
with regard only for

earth

need to defeat

burrowed

our

enemies.

we are

fortunate in that

the

European aid program has
been entrusted to two sound busi¬

ness

our

deep into the rich

ores

men

like Paul Hoffman and

Vice-President

the

Ex¬

Butler directed the
Public Relations Department and
change,
served
cers

Mr.

contact

of listed

with offi¬

man

corporations, mem¬

ber firms, commercial and
ment bankers.

invest¬

A graduate of the

University of Notre Dame, and
post-graduate student at the Uni¬
versity of Chicago, Mr. Butler be¬
gan in the securities business with
Hornblower & Weeks, Cleveland.
Later he organized and served as
Secretary-Treasurer of Lawrence
Cook & Co., Cleveland. In 1940,
faith in our own nation and our he joined the staff of Securities
and
own way of life, and in a redediExchange
Commission, in
cation to the ideals by which our Chicago, and served as investiga¬
tor prior to joining the staff of the
country has always lived.
>
Let us not fool ourselves.
We Exchange.

W. Averell Harriman. They are
lands, this sum being entirely
of the great Mesabi iron
range— men of the necessary experience,
separate from and in addition to
are no 'wiser and no braver than
and, as a result, it has already been the understanding and the breadth
the enormous costs of our military
the peoples of most other lands,
remarked that "nobody will ever of vision. They have before their
occupation.
and for the most part we are far
fight another world war on the eyes the problem noted by the
less experienced. So far, we have
And ths aid which has gone Mesabi
range." We tapped our oil Harriman committee in its origi¬
overseas has
been infinitely luckier. We have
gone there in the
pools without stint and threw into nal report on European Recovery
face of substantially increased re¬
had greater opportunities.
And I
the fight a large proportion of our and American Aid. In that report,
am
afraid that many times we
quirements by our own people.
reserves
of such metals as lead written a year ago, you will find
have allowed this good luck to
Take food as an illustration. and
this warning:
;
'
copper.
turn our heads or make us com¬
The productivity of the United
"If the American economy is
Today, although we have only
States has been increasing stead¬
placent.
one-third of the known oil re¬ pinched at certain spots or sectors,
ily, but it is fully balanced by
At the time of the attack on
this may lead to serious reper¬
serves of the world, we are con¬
increased domestic needs. Three
Pearl Harbor, a Japanese Admiral
tributing two-thirds of the world cussions throughout the entire
farm
people can now produce
economic structure. Even though said that the Japs would win the
production.
more than four could produce just
because
of
our
incredible
the total sum of money spent for war
We can no longer ignore the
before the war.
With approxi¬
complacency—and he had reason
fact that our natural wealth is purchase in the United States is
mately the same amount of land
small relative to the national in¬ to make such a prophecy. It was
as in
the prewar years, we are running out.
come, its expenditure can set off only because we were jarrfed out
The grim fact is that our com¬ a chain
turning out a third more of farm
of inflationary reactions. of [that complacency that we were
products. In corn, for. example, mercial reserves of many metals
In the case of foodstuffs and other able to perform as heroically and
our average crop in the four pre¬ .and minerals—and
by "commer¬ commodities, the prices of which successfully as we did.
It is not
war years was about 2 Vz billion cial reserves" I. of
course, mean are highly sensitive to Changes in too hard to be jolted out of com¬
bushels; since the war it has ex- the reserves which can be ex¬
supply arid demand, purchases for placency by an-attack such as we

the

citizen himself, and the

—

.$70

our

James E, Day, President of the
faith
together, those pres¬
Stock Exchange, in accepting Mr.
which he has in his own social,
spell a real and present
financial stability and high-level
Butler's resignation, expressed re¬
danger of inflation—an inflation economic and political way of life. luctance at his
performance.
leaving the Exwhich can be avoided only if we
For many years various parts of Change but was pleased to know
Today we are In the midst of a
soberly appraise exactly what we the world have been overrun by he would remain
closely identi¬
boom. We have achieved the fab¬
are
setting, out to do, and take fanatical totalitarians. They have fied with the growing financial
ulous "full employment" level that
every precaution to keep our own been ingenious, ruthless and zeal¬ markets of the Middle West.
we
wistfully dreamed of. a few
productive mechanism in high ous. and as a result they have suc¬
have
Taken all

can

$7,600,000,000. In
by ttm end of this
the assistance given to over¬ years ago; we
made the
gear.
'.i'1
ceeded in putting millions of peoseas nations by this country since
transition from a war economy to
President
Truman
accurately ole in chains. It is useless to com¬
the end of the war will have peace without major dislocations.
reached a total $20 billion. His¬ Our physical output is half again pointed to this danger long ago. plain of their philosophy, their
In his message to the 80th Con¬ morals,
their devious ways or
tory has never known such a as large as it was in 1939.
gress last November, he declared: their outlook on life; they have
stupendous operation.
But the pressures under which "We can no
longer treat inflation made great headway, and we can¬
Nor is that all of the story. We we work
the pressures which —with
spiraling prices and living not deny the fact.
meed to bear in mind the fact that must
bear
upon
our
economy costs—as some vague condition we
But as we search for a way to
mot all of this help has gone to every minute of the
year — have may encounter in the future. We combat these fierce and intran¬
the nations with whom we stood increased
greatly in a decade.
already have inflation."
sigent ideologies, let us remember
.shoulder to shoulder during the
The problem, fortunately, was one thing:
war
as
allies.
During the year Our Resources Not Inexhaustible
clearly foreseen before we em¬
We will combat them success¬
1947, for instance, we spent $480
We can no longer consider our¬ barked
upon the recovery pro¬
.million on relief in Germany, $546
fully, and win a final victory over
selves a land of "inexhaustible" gram. •1
'.y.y
million on relief in Japan, and natural resources.
them, only through a strong, robust
other words,

year

And if

and grow and do its noble work
in

home

munism.

ers

program—

if our price levels should get out

of hand.

remember that this program
will not be taking place as it did
and

thing

undergo every hardship, aban¬
every moral code, sacrifice
Overseas, the consequences of everything that is dear—or what
even a relatively moderate jump
we would call dear—in order to
in prices in America would be advance their cause. Such frenzied
immediately
visible.
Many
of devotion generates something that
Europe's
problems
today
are is hard to stop. It can be
stopped
problems of currency and of fi¬ only by an opposite devotion—a
nance.
They would
inevitably devotion to the ideals which
grow more
severe—thereby in¬ throughout the years have made
creasing the size of the job to be us proud to be Americans.

are

economic pressure of a vastly ex¬

the most notable

don

consuming the old ones— tion in the United States. For
At the end of the war, Europe
that what we can do depends, to a
over 10-0 years Communists have
entered on a period of conva¬
great extent, on what we set out preached that the surest way to
lescence.
But this period had to do.
'
lay low a capitalistic system is to
barely begun when it was inter¬
We must remember, however, debauch its currency. If we feel
rupted by a series of tragic mis¬
that there are limits to this elas¬ the need to fight the ideology of
fortunes — the bitter winter of
ticity. The stretched rubber band Communism, the best way to do
1946, heavy spring floods, and the
can break.
is
to
strengthen
our
own
The danger is that, by it
summer drought of 1947.
Euro¬
Our greatest
complacency or blundering, we economic system.
pean recovery ground to a stand¬
can place impossible burdens on
weapon
will - be
an
American
still.
It was then that Secretary
ourselves or weaken our economy economy which works smoothly,
Marshall at Harvard University
at vital points.
efficiently and successfully in the
proposed to the nations of Europe
interest of all parts of our com¬
a cooperative program
by which
Economic Pressures
munity within the framework of
we would help them to help them¬
Consider these pressures once our democratic form of govern¬
selves. The Congress has approved
more: the heavy domestic demands
ment. This is a challenge to each
this program, and has provided by
due to high-level employment and of us, to the individual citizen, tc
law for the Economic Cooperation
leaders in labor and industry, bu1
general prosperity, plus the heavy
Administration.
overseals demand due to the re¬ in particular to those of us whe
Western European Recovery
covery program.
Add to these, hold public office. Our democratic
now—as it must be
added, within capitalistic system must be made
We have embarked upon an ef¬
the very near future—the further to work and to work for all, and

our own economic strength.
Certainly the history of the last fort to aid the recovery of western
few years illustrates the point Europe. We are all committed to
sharply.
it—Republicans and Democrats. Ifc
is a serious and stupendous under¬
Volume of Overseas Aid
taking, and a prime factor in its
During the war, for instance,
successful accomplishment must be
this country sent overseas an un¬
the maintenance of a sound and
believable volume of goods in the
strong American economy.
We
form
of lend-lease
aid
to our

with

today.

ture."

Yet the adequacy of our trans¬

about Communism is the religious
fanaticism with which its follow¬

may

each month of this year,

must do

be felt in
the form of pervading scarcities
throughout the industrial struc¬

govern¬

ment and industry had considered

possible;
ticity as

prices.
material

very

elastic.
most

Thursday, June 24, 1948

His election

Vice-President §t

the State Bank of Blue Island is

part

of the bank's program to
broaden its services and strength¬

en the official staff, including an
expanded emphasis on both per¬

sonal

and

industrial

credit,

Mr.

O'Toole said.

Wm.0. Dunlze Opens
Office in N. Y. Cily
William
an

O. .Duntze

office at 60 Wall

York

opening

City, to engage in the secur¬

ities business.

past

Street, New

was

dealer

Mr. Duntze in the

active

as an

New York

individual
and.was,a

principal of Swart, Duntze & Co.

Volume 167

COMMERCIAL

THE

Number 4710

Business

Indications of Current
The

following statistical tabulations

shown in first column

are

"•

either for the week

(dates

date):

Latest

AMERICAN

IRON

STEEL

AND

Indicated steel

Week

Steel ingots and castings produced

-June 27

(net tons)

Year

Ago

•

'•

iron

1,672,900

1,744,800

•/,; 1,730,400

1,734,000

oil

Crude

output—daily average

Gas oil

distillate

and

fuel oil

Residual fuel oil output

(bbls.)

Kerosine
Gas

(bbls.)

oil and

Residual fuel oil

5,592,000

5,736,000
17,787,000
2,224,000

17,141,000

15,781,000

2,253 000

1,921,000

standing

7,143,000

7,249,000

6,800,000

5,920,000
8,863,000

new

June 12

8,967,000

9,354,000

9,002,000

105,849,000

108,385,000

14,065,000

92,692.000
13,375,000

(bbls.)

oil

(bbls.)

Imports

16,897,000
42,268,000

41,063,000

36,267,000

36,204,000

Dollar

56,030,000

48,146,000

Based

906.948

821,213

847.403

700,630

659,687

693,864

700,645

ENGINEERING

CONSTRUCTION,

Private
Public

June 17

construction

and

Ijune

municipal

(U.

coal

coke

17,747,000

55,015,000

52,620,000
46,459,000
6,161,000

STORE

33,855,000

.June 12

TEM—1935-39

13,300,000

1,210,000

♦13,040,000
1,011,000

13,250,000

June 12

145,000

*134,600

'.iCv-.-

SYS¬

June 12

,305

.June 19

AVERAGE=100

tons)

met

5,159,255

—

output

STREET,

INDUSTRIAL)—DUN

AND

■NS

June 17

(short tons)

293

282

(tons

Refined

—

■'

100

COMPOSITE

AGE

Finished

steel

Deliveries

300

3.24473c

$40.53

$33.15

June 15

$40 66

$40.66

\,v> : $33.25

hi1;' ■' v-

? 5 ^V'v;

'•

yC-'O,

Vr.7

.June 16

tin

(New

Lead

(New
(8t.

Zinc

York)

(East St.

,21.200c

22.175c

2i.575c

21.550c

16
16
16
16

103.000c

June
June
June
June

17.500c

-3'

17.300c 3
12.000C

12.000C

,21.425c
80.000c

17.300c

12.C00C

.June 22

100.98

101.32

113.51

113.31

113.12

..June 22

116.02

.June 22

:;:T
'

120.22

106.92

106.74

106.92

108.70

:!'V;

1,051,083

1,169,085

1,097,15©

sale

584,969

659,821

636,70©

466,114

509,264

460,443

2,726,415

2,907,694

tl25.4

134.3

$1,287,130
200,987
369,386

$1,229,757

392,534

116.80

117.20

.116.80

2.43

2.41

2.39

2.99

3 00

$1,745,537

$1,857,503

$1,829,245

2.74

2.76

tons)

2.56

June 22

.June 22

2.85

June 22

■

.June 22

Baa

Railroad

Utilities

Public

Industrials

2.84

.';;

2.85

3.03

—;—————

(BUREAU
April:
' V
'

3.35

2.72

2.97

.June 22

2.81

2.79

2.81

438.0

427.4

425.3

■

-i ,,f /

RATIONAL

FERTILIZER

ASSOCIATION- -WHOLESALE

COMMOD-

June 19

287.3

products..

June 19

268.8

June 19

■v>

351.9

Livestock

—

June
June
June
—June
June

Fuels
commodities

—

Textiles

Metals_.
!

Building materials
Chemicals

and

Fertilizers-

groups

;

•

256.2

231.4

228.6

176.1

177.1

2C9.1

215.2

165.9

Orders

received

Production

;■

wm 165.2

172.2

148.5

181.3
154.7

134.2

142.9

136.1

325.3

143.8

134.6

Stocks

138.9

125.3

223.3

197.1

143.8
139.4

226.6

224.3

171,337

;:;222,226

193,156

168,802

62,771
420,425

57,32©

„

100

614,000

651,60©

74,704,000

70,261,691

135,369,744

134,546,325

618,868

82.3%

78.0%

74.4%

$153,653

$130,000

232,154

180,00©

164,862

$95,176

215,383

185,716

147,008

184,443

142,113

36,18©

40,435
70,241

39,879
77,043

66,278

139,544

150,190

101,84©

162,891
125,550

144,179)
106,127

35,409

37,341

38,048

508,822

427,55*

(DEPT. OF COMMERCE)—-

April:

sale

162,975

114,896

—-

(short

tons)
1—

tons)

For

•w.103

385,907

382,998

150,305

——

producers' own use (short tons).
Unfilled orders for sale at end
of month

183,105

87
,

collateral—-

(M ft., log scale).
ft., log scale) at end of month—

CASTINGS

STEEL

146,726

402,625

101

380,421

other

month

Month

188,745

June 12

$530,53©

66,192

360,368

—

Consumption of logs

3;:. 139.4

June 12

$572,335

...

$614,720
68,600

U. 8; Govt, issues—

Shipments' and
consumption (M sq.'■>. ft,,
%-in. equivalent)Stocks (M sq. ft., %-in. equivalent) at end

158.6

June 12

Percentage of activity
Unfilled orders (tons) at

•"

232.8

155,789

12-21-24=100

index,

158.6

.June 12

(tons)

—

...

PLYWOOD
(DEPT. OF COM¬
MERCE)—Month of April:
.
,
Production (M sq. ft. %-in. equivalent)—-

218.7

■

price

For

(tons)

3,081.648

customers—.

borrowings

ASSOCIATION:

PAPERBOARD

32,97©

*3,381,240
*54,545

3,436,647
52,561

——

and in

hand

Shipments (short
NATIONAL

162,320

*35,802

SOFTWOOD

155.3
f-

extended
on

229.9
<.

134.6

June 19

72,39©

*152,735

35,319

—

tons)

Member

254.9

283.6

158.0

June 19

combined

232.1

176.9

230.1

•r

*73,922

153,519

STOCK

borrowings

June 19
June 19

machinery

Farm
All

drugs

materials

Fertilizer

tons)

Member

359.0

361.5
265.2

Stock

248.9

209.4
3

216.3
203.5

231 4
'•

;: '

266.1

261.3
•

274.7

19
19
19
19
19

June 19
June 19

—

353.0

261.6

Miscellaneous

301.8

297.9

276.2

Cotton

237.7

239.5

242.0

June 19

Farm
I

;V: '

oils.

and

Fats

73,802

banks in U, S.
Total of customers' free credit balances—
Market value of listed shares
—-----—
Market value of listed bonds—
,—>
Cash

Foods
1

———

ounces)———:,

fine

short

(in

Credit

GROUPS—1035-39— loo:

INDEX

ITY

metals

EXCHANGE—
As
of May 28
(OOO's omitted):
Member
firms carrying
margin accounts—
Total of customers' net debit balances—

403.5

i^June 22

(in

YORK

NEW

2.G1

MOODY'S COMMODITY INDEX

•

short

(in

—

3.11

2.96

.June 22

Group

;

recoverable

production

Zinc

3.22

3.24
2.95

—

MINES)

OUTPUT

Silver

2.62

3.23

156,540

—

——

Lead

2.64

3.04

3.34

3.34
3.21

.June 22

Group

■Mlj\3.03.

June 22

$1,196,463

—

Copper (In short tons)-'Gold (in fine ounces)——

1129.9-

;

omitted)—

the

•

Employment at middle of
Average—100)—

Total

2.24
'

COMMISSION—

INSURANCE

LIFE

METAL

PURCHASES — INSTITUTE
—
Month of May

INSURANCE

Group

120.84

2,690,853

——

COMMERCE

of Railway
(1935-39

(OOO's

2.82

2.76

COM-

(DEPT.

CASTINGS

IRON

Index

118.60

108.88

113.89

June 22-

Aaa

24-2

221

111.07

114.08

109.24

113.70

Bonds

i*,
!

242

247

22*

YIELD DAILY AVERAGES:

corporate--

r, : ' X

249

Month of

Average

243

Ordinary

109.06

.June 22

Group!

Govt.

23T

Mine

U. S.

May:

251

Industrial

116.61

.June 22

Group

MOODY'S BOND

1935

—

247

121.88

112.37

.June 22

Group—

Industrials

117.80

:■

116.02

112 .56

112.56

June 22

Baa

118.20
116.22

117.80

..June 22

;

Utilities

293

116.01

Public

DISTRICT, FEDERAL RE¬

237

LIFE

103.90

101.54

.June 22

Railroad

84,5©©

255

INTERSTATE

10.500c
,

Bonds

Aaa
■»".

67,257

FED¬

STORE SALES—SECOND

BANK

(short

14.800c

PRICES DAILY AVERAGES:

BOND

72,791

—

252

15.000c

17.500c r

17.500c

■'

17.300c

corporate

Govt.

Average

'•

118,12©

268

May
MOODY'S

1 "

116,475

end of period (tons

(short tons)
(short tons)
;•
For producers' own use (short tons)
Unfilled orders
for sale at end of month

21.225c

64.000c

Louis)

•

113,389

lbs.)

(average

For

;V-v;

21.200c

at_.

Louis)

21.200C

__June 16

Export refinery at
Straits

108,53©
'

-.V:

QUOTATIONS):

Domestic reiinery at.

Lead

monthly), unadjusted
—
Sales
(average daily), unadjusted
Sales
(average daily), seasonally adjustedStocks, unadjusted as of April 30_
Stocks seasonally adjusted as of April 30——

2.85664c

June 15

;

91,27©

*88,741

104,044
••

lbs.)

2,000

GRAY

(E.

—

Shipments

V-'1,

copper—

•

of 2,000

(tons

AVERAGE—100—Month

•

3.24473c

.June 15

Pig iron (per gross ton)
Scrap steel (per gross ton)

Electrolytic

91,526

<104,524

lbs.)

customers—

SERVE

PRICES:

(per lb.)

METAL PRICES

121,475
698,615

4,676,300

5,685,412

110

131,111

641,110

May:

Month

For

2,000

114,314
'

5,131,811 !

$275,000,000 $250,000,000

628.123

——

(short tons)

Copper production in U. S. A.—
Crude
(tons of 2,000 lbs.)

Sales

BBQN

600,70©

STEEL

INSTITUTE

COPPER

113,500

141,900

1,155,000

1,206,000

■;

BRAD-

INC.

4,549,00©>

$253,000,000

ERAL RESERVE

(COMMERCIAL

617,900

May

DEPARTMENT

FAILURES

56,464,00©

FORGINGS (DEPT. OF
COMMERCE)—Month of April:

000 kwh.)_.

(in

4,867,000

PAPER

COMMERCIAL

ELECTRIC INSTITUTE:

Electric

34,631,000
4,438,000
*246,100

56,590,000

—_

Refined copper stocks at

EDISON

5,450,000

$189,256,000

;
and lignite (net tons)——
anthracite (net tons)-.
!

Unfilled orders at end of month

INDEX—FEDERAL RESERVE

SALES

22.081,000

$242,057,000

12,595,000

2,370,000

(tons)

DEPARTMENT

20,812,000

$255,635,000

-—

OUTSTANDING—FED¬
RESERVE BANK OF NEW YORK—

ERAL

MINES):

(tons)
(tons)

9,864,000

(BUREAU OF MINES)—Month

COMMERCIAL

41,863,000

64,981,000

64,962,000

June 12

lignite

Pennsylvania anthracite
Beehive

75,329,000

98,817,000

June 17

BUREAU

and

3,798,000

between

coal

Shipments

OUTPUT

Bituminous

67,953,000

9,9C6,000

;

Federal

COAL

$94,488,000

58,930,000
56,560,000

•

June 17

construction

State

$62,728,000

$174,146,000

$126,883,000

June 17

construction

2,976,000

——

10,121,000
8,833,000

May:

Pennsylvania
Beehive coke

RECORD:

Total

9,141,000

——

COAL OUTPUT

NEWS-

ENGINEERING

$117,686,000

credits

stored and shipped
countries

Bituminous
CIVIL

$143,159,000
54,065,000

10,335,000

895,292

June 12

277

2,423,74$

57,315,000

goods

Total

June 12

*277

*2,818,962

out¬

-—

warehouse

Domestic

RAILROADS:

Revenue freight loaded (number of cars)
Revenue freight rec'd from connections (number of cars)

277

2,767,597

As of May

exchange

52,930,000

57,481,000

■'

—

.June 12

AMERICAN

reserve bank of
29—

fed.

—

Exports —3
Domestic shipments

foreign
ASSOCIATION

—

york

June 12

•'

$155,056,000

acceptances

dollar

bankers

107,278,000
15,783,000

i_. .June

distillate fuel

„

freight

17,928,0G0
2,270,000

June 12

7,339,01*

*6,218,157

7,564,626

reporting
transported (tons)-..—'

5,161,000

June 12

(bbls.)

output

;

Ago
i

association—

Volume

5,113,200

5,640,000

June 12

Btocks at refineries, at bulk terminals, in transit and in pipe lines—
Finished and unfinished gasoline (bbls.) at
!

5,422,600

June 12

(bbls.)_

(bbls.)
(bbls.)

output

Kerosine output

Month

of motor carriers

June 12

to stills—daily average

runs

Gasoline

*5,470,950

5,479,600

June 12

Year

Month

April:

Number

(bbls. of 42 gallons each)

institute:

steel

trucking

Month

Crude

.M "

■

ingots and steel for castings produced
(net tons)—Month of Mayri.3-r———

INSTITUTE:

PETROLEUM

and

Steel

american

AMERICAN

■

American

95.6

96.8

96.0

9G.2

.June 27

(percent of capacity).

operations
Equivalent to—

Month

Week

INSTITUTE:

•;.k\
'

production and other figures for the latest week or month available
or month ended on that date, or, in cases of quotations, are as of that

cover

(2777)

FINANCIAL CHRONICLE

472,370

812,578

(short

tons)..

COACHES—HOUSING TYPES ONLY
(DEPT. OF COMMERCE)—Month of April:
Production (number of units)
u
Shipments (number of units)
Shipments (value of)

TRAILER
*

OIL)

PAINT

DRUG

AND

AVERAGE=1U0

-1

—

REPORTER

WHOLESALE PRICES—U.
'Farm

.Building materials

Miscellaneous

allied

and

Housefurnishings

commodities

Manufactured

:
•

147.6

TREASURY MARKET

187.9

178.3

RECT

180.1

178.0

178.9

162.4

186.7

products

All commodities other than farm

products

figure.

and foods

187.0

148.8

12
12
12

133.8

.189.0

167.0

Net

v:;. 148.1

338.5

Net

133.4

•

133.8

142.3

156.5

sales

*4,874

5,47©

$8,682,55©

$30,404,500

$12,100,000

$338,623,009

4,064

*4,238
*4,718
*$13,399,837

$12,691,288

TRANSACTIONS IN DI¬

GUARANTEED SECURITIES
A.—Month of May:

TRUCK

—

TRAILERS (DEPT. OF
of April:
(number of units)

196.9

196.6

195.9

176.1

134.4

124.4

Production

145.1

144.7

129.6

Shipments

320.9

121.0

COMMERCE)

—Month

135.2

—

———

...

137.1

*4,941

*$8,499,406

AND

purchases

121.2

•

116.0

Shipments

181.6

180.9

177.7

361.2

153.C

153.0

152.5

142.3

149.3

„

—

4,731

$13,313,997

STATES GROSS DEBT

159.0
158.0

1-11.9

149.3

149.0

132.1 j

Net

debt

Computed annual Interest rate
*

Revised figure.

5,245

5,123

$252,315,331
4,612,423

$247,364,705 $247,702,908

General fund balance

$254,454,347

4,946,292

142.9

158.6
158.0

159.3

158.5

(number of units)..
(value in dollars)

DIRECT AND
GUARANTEED—(OOO's omltted)«As of May 31 $252,311,077

UNITED

June 12
June 12
June 12

5,42©

5,517
5,698

$10,151,077

104.4

;

149.2
156.8

157.1

June 12

June 12
June 12

articles

All commodities other than farm products
•Revised

163.5

192.4

*vV.

materials

Semi-manufactured
.

W'y

164.2

193.5

June 12
June 12
June 12

products

goods_.

Special groups—
Raw

143.5

140.8

147.8

■

164.9

June
—June
June
June

Bides and leather products—
products
Fuel and lighting materials
Metal and metal products
Chemicals

;

.June 12

Textile

147.4

June 12
June 12

;

products

Foods-

{•

V
June 18

8. DEPT. OF LABOR—1926=100:

All: commodities
t:

INDEX—1926-30

PRICE

tPreliminary figure.

2.174%

2.173%

2.095%

THE

(2778)

COMMERCIAL

FINANCIAL

CHRONICLE

change in their incomes.

Federal Reserve

Snrvey of Consumer Finances

tations

(Continued from page 5)

before

measured

and

after the

price break. Many more
change in the
number of spending
units that 'spending units anticipated price
declines
after
the
price
break
were prospective
buyers of dur¬
than before.
These general price
able goods other than cars.
Al¬
though there was roughtly a 20% expectations were closely related
decline in prospective demand for to people's expectations on food
both new and used
houses, would prices. In the case of prices of
be buyers of new houses still ex¬ durable
goods,
many
spending
ceeded the number that it is esti¬ units anticipated declines as early
mated would be built during the as July. 1947. and no difference
but

there

was

present year. The prices that
sumers
planned on paying
durable

goods

houses

and

durable

for

noted

was

con¬

goods

interviewed

consumers

were

expectations
expressed by

price

after the

July,

price break in

closely in line with prices paid

1947

last year.
While total plans to
buy durable
goods and houses changed little

February.
The commodity price break ap¬

and

peared to have little effect upon
buying intentions. Consumer plans
there were significant shifts in the to buy cars, other selected dur¬
able goods, and houses continued
number of potential
buyers from
at high levels.
lower to higher income
There was some
groups.
Some part of this can be
indication of a slight drop in plans
attrib¬
uted to the movement of
to
buy selected
durable goods
between early 1947 and

early 1948,

spending

units
to
higher income levels.
But it is also obvious that
higher

automobiles.

than

other

is noteworthy that

the com¬
prices were forcing many low in¬ modity price break did not change
come
consumer buying
plans for dur¬
people out of the market.
Among consumer units with in¬ able goods. There is the possibility
comes
below
$3,000, a smaller that it may have affected con¬
proportion planned to buy auto- sumer plans to buy clothing and
, other nondurable
mobiles and other selected
goods, but the
dur- j
able
goods in
1948
than
had survey does not obtain information^mbout the demand for these
planned to do so in 1947.
Manymore with incomes
goods. For the most part, how¬
of $5,000 and
above planned to
buy consumer ever, consumers anticipating in¬
creases or decreases in prices at
durables.
In the case of
houses,
the time of the survey did not ex¬
few consumer units with
incomes
of less than
$2,000 were still ac¬ pect very substantial changes in
tively seeking homes. They had prices, and it is therefore not sur¬
been priced out of the
expectation of
market. A prising that the
substantially larger part of de¬ slight changes in prices one way
,

mand for houses

ple

from peo¬

came

with

incomes of $5,000
The number of

more.

units

spending

with

incomes

$5,000

that said they would
buy
durable goods and houses in 1948
was 50 to 100%
greater than in
the previous
year.
;
more

■

Consumers indicated intentions
to buy a larger
proportion of con¬
sumer

basis

1947.

durable goods on a "credit
in ,1948 than
they did in
Last year

lion
of

roughly nine mil¬

spending units or two-fifths
those buying consumer
durable

goods

used

instalment

credit

purchasing these goods.
Consumer plans to
buy both
durable goods and houses
would
indicate a continuation of

heavy

demand in those areas which

strongly

dependent

are

avail¬

upon

ability of credit and liquid assets
for effective
buying power. Under
these

circumstances,

there

will

continue to be further
heavy dis¬
saving by spending units in 1948.
In

all

fourth

likelihood
of

least

one-|

all

spending units will
spend more than their incomes
in the present
year and there will
be no substantial
change in the

aggregate amounts saved by other
spending units. As indicated be¬

fore,, this, heavy dissaving isa
result of consumer
willingness to
spend

for

services.

consumer

goods

and

many

The

are

using

credit

accu¬

mulated savings to
replace wornout durable goods or to
buy for
the first time in their lives

types of

consumer

Effect of Prices

goods.

Buying

The question has been
raised
to whether the

effect

upon

expectations or their ex¬
pectations regarding the economic
outlook.
They continued to be
optimistic abbuf future prospects
for themselves

country

well

whole.

as a

this

point, I

my remarks

1948

Survey
I

nances.

Consumer

should

briefly discuss
ble

have confined

survey

was

uses

and houses

direct

use

probably of most

are

aid in sales fore¬

casting. They are experimental
data, however, and must be used
with

caution.

Consumer

half completed at the
time of the
break in

commodity prices during
the first week in
February. By
taking a number of interviews
after the price- break in
addition
to those
originally

planned, it

possible to build
tative

cross-section

was

two represen¬

samples,

one

interviewed before the decline in
the commodity market and
one
after
it, and to ascertain any
change in buying plans or con¬
sumer

expectations between these
two samples.
There

was

consumers

very decided shift
general price expec¬

plans to

buy in any particular year should
not be construed as an indication
of the exact
mand

measure

of total de¬

small.

are

Until

such
should be

time, intentions data
compared with previous year in¬
tentions data and also to the
tual

ac¬

volume

same

of purchases in the
in order to understand

years

their

meaning
and
limitations
fully.
: i
Perhaps of less direct use but
certainly as important in sales
forecasting are the financial data
more

collected

the

Consumer

Fi¬

Survey. This information

nances

includes the distributions of

con¬

the income scale to offset reduced

purchases at the bottom. It is ob¬
vious

spending

such

Consumer

Finances

war

use
ex¬

facilities. Thus, the

tension, of

increased

forecasting

tremendously
years.

construction
new

much

have
to the

end

the demand for

by various socio-economic char¬
acteristics
to

important guides
forecasting. Later this
the Board hopes to make
are

sales

results

survey

first time from

data

showing the

distribution of 1947
after

come

taxes,

well

in-

consumer

deduction

consumer

been
resi¬

boom.

There

But

credit.
are

the

sales

consumer

unit income has

incomes

many

tion

relat¬

attitudes and

ex¬

pectations, particularly data that
may have a bearing upon con¬

method

the

and

field

so:

goods

and

vance.

houses

represents

development

new

economic

keting research.

ad¬

While

(2) Factors having

an important
prospective
and

upon

actual demand and
relating to the
article to be purchased such as

(3)

beginning of the

year,

consumer

spect

These

expectations
his

em¬

ployment status, income prospects,
and availability of
credit, are not
fully known to the consumer at

beginning of the

The

year.

v :

interplay of each of these

bearing

upon

important

the relation of

ac¬

tual purchases of selected articles
:n

given

chases

to intended pur¬

year

the

From

year.

beginning of the
1946, 1947, and

the

1948 surveys, information is avail¬
able regarding intended and ac¬
tual purchases in 1946 and 1947.
In

1946, the first

consumer

tion

after

mands

are

which

future

with

re-1

income

durable
the

were

year

goods

war,

full

produc¬

backlog

substantial

de¬
and

of the

some

information

and

items for

Such data

are

basic to

understanding of the psychologi¬
cal factors underlying consumer
behavior patterns.
*

data can constitute

Durable Goods '
'

Examination of the demand for

automobiles

durable

ob¬

and

other

goods'; by

ing economic trends, the method
of the

selected

income

only one body
for analyz¬

material

reference

financial surveys

consumer

promises to be

level

practical way of
much needed infor¬
for
intelligent
market

also reveals that it has been pos¬
sible to sustain prices of many of

mation

these durable products because of

analysis.

developing

■

Jf The GOP Platform

should

specific
sible

give

illustrations

usefulness

several

the

pos¬

certain

data

from the Consumer Finances Sur¬

veys

sales

forecasting work.

One

theory related to consump¬
tion-saving patterns that has had
considerable
been

widely

acceptance and has
used in forecasting

future spending and
saving, states
that as the real income of the

community
percentage

increases,
income

Followers of this
mass
war

greater

and

even

of sustaining

high levels
income when saving
high. Information from

1947

nances

Survey of Consumer Fi¬
indicates

that

spending

heavy spenders and small

most urgent

than spending

units
come

receiving
were

increases

in¬

likely

savers

units experiencing

Under repeated questioning regarding their opin¬
of specific planks, Messrs. Stassen, Dewey,

interpretation

Taft have pled ignorance ''because of the lack of time for

study."

Only the "non-running" Vandenberg has come out with
forthright and specific approval, and that limited to "his" foreign
plank.
"We shall say what we mean and mqan what we say," the plat¬

affairs

states

referring to

our

relations

with foreigners.

the

domestic front, however, unfortunately neither our own citizens nor
even the candidates know what is really meant—the latters' concern

being that it is safely all things to

people

many

possible.

Of course,

this appeasing and catch-all attribute of the platform
is not peculiar to this convention or incipient campaign, but is endemic
to American politics.
The abuse is aggravated by the procedure of
formulating the platform in advance of choosing the candidate; fol¬
lowing the principle that the party as well as the nominee are
running for office.
But this established procedure is sound only
theoretically.
For harmony between the nominee and the principles
which both he and his party are to run, it would be much more
practicable to choose the nominee first and subsequently to formulate
the platform. ^
^
on

saved.

theory predicted

national

rates were

the

ion

This has

been

done

the

State

elections, with satisfactory results.

unemployment in the post¬
period because of the impos¬

sibility
of

platform content.

form

of Data

Use

planned purchases at the begin¬
ning of the year generally ex¬
ceeded actual ~ purchases
during
the year. By 1947,
many of the

backlog demands had

ob¬

now

in the Consumer Finances

Survey.

and

Factors relating to general

economic conditions such

vious that the indications of such

motives to spend or to save
to invest. Among such data are

price, availability, and style, are
not fully known to the consumer
at the

mar¬

sumer

tained

bearing

and

saving out of income, the trend of
j
i
*
(Continued from first page)■
prices, and general economic ac~
:
■'
"
*
tivity,
and
attitudes
regarding who had been attending its solemn reading in the manner of frank;current financial status, the rela¬
further-stand habitues at a six-day bicycle race.
.
K"
'
* ;
tive merits of saving and spend¬ v; >
Of even greater significance, the candidates themselves have
not
ing, and investment preferences. been almost uniformly exhibiting complete indifference, to ward the

durable

year

and

influencing

factors

behavior,
of

^fi¬

composi¬

budgets

(1) Many consumers
plan their purchases of

buying

attempts

the

both

be purchased
during the year.
There are a number of reasons

why this is

consumer

which

household

relatively

prices

surveys,

consumer

Demand for Autos and Other

forecaster.

optimism

psychological

units in need of housing to

higher

buying

analysis might be de¬
the effect of liquid as¬

determine

price-of-house to in¬
relationships, it has there¬
fore been possible for many con¬
considerably

between

and

'J;'- '

The

normal

pay

nancial

come

sumer

or an

consumer

sumer
units have increased
by
substantially greater margins. Un¬

der

relation

expectations

plans.

con¬

years ago.

information

concerns

ing to

the

aid

as an

analysis. A study might
of the

availability upon the propen¬
sity
to
consume,
or
a
study
prepared on the relation between

increased $500 during this period
and

;

set

day may be important infor¬

mation

units since 1945

consumer

made

veloped

very

third set of data that

substantial upward
shifting to higher income levels.
Median

many

Consumer Finances data

houses is still

Federal1 than
they could have paid several
the distribution

consumption expenditures
1947 by income level.

That

consumer
a

other illus¬
trations of the possible use of the

one

shows

volume

originally anticipated may be
to the availability of
liquid assets and consumer will¬
ingness to spend them. As more
consumer
units dispose of their
holdings, it is probable that there
will be an increasing demand for

persons

many

among

smaller

credit in the past few years than
was

plans;

higher and lower income levels,
changes in consumer liquid asset
holdings by income levels, and
changes in consumption and sav¬
ing patterns by income level and

units

consumer

of credit

tion of the distribution of income

fewer

buy durable goods they made

price

units

in¬

held liquid assets and in order to

market sustained itself? Examina¬

consumer

Surveys

able goods rather than credit. Be¬
fore the

Up-to-date

which

buying

consider¬

was

dicate that wartime savings have
cften been used in buying dur¬

to market

information

used

the

smaller than might
have
anticipated on the basis of
prewar experience. Data from the

large in relation to expected com¬
pletions.' Why has the potential

come,

credit

far

peak,

prewar

merchandise

1947

attributed

past several

dential

of dur¬

during

been

housing market. House prices

that

the

volume

ably

Another illustration of the pos¬
use of these data refers
to

the

sold

amount

saving.

have

will

of consumer

use

dollar

exceeded

sible
the

the

goods

able

stimulate

reductions

yWhat about the

but certainly from experi¬
ence
in
the
current
period it
would
appear
that increases in
than

price

credit in the years since the war?

While

come;

income

that

be
necessary
to stimulate pur¬
chases by lower income groups.

income, saving out of in¬
and liquid asset holdings by
spending unit and family groups.
sumer

of the quantities of goods

three factors has had

than

demands

There is

Of course, the buying intentions
data for consumer durable goods

larger demand from upper in¬
come groups. It is also
indicated,
however, that the maintenance of
demand at current price levels
depends upon an expanding vol¬
ume
of purchases at the top of

tendency
of
income

was

pective buyers in both years. In consumer units in satisfying de¬
the case of major household ap¬ ferred demands.
But there is a
pliances, there were half again as real possibility that income in¬
many actual buyers as prospective creases encourage many consum¬
ers
to purchase goods that have
buyers in 1947.
A better
basis for estimating heretofore been beyond their ef¬
fective buying range.
approximate
quantities of
any
After the
durable item that may be pur¬ results of a number of these sur¬
chased should be provided by a veys
are
available, it may be
comparison of intentions data and possible to make a more definitive
actual purchases over a period of statement
about
consumptionseveral years when supplies of saving
patterns in periods when
goods are plentiful and backlog there are increases in real in¬

Surveys in sales forecasting.

Interviewing for
more

of the possi¬
of the Consumer Finances

the

little

Fi¬

now

some

there

new

available for the

to the results of the

increased

for
the
percentage
was found that,
automobiles, the saved to fall and the percentage
total of planned purchases was of income spent to rise.
There
less than actual purchases during may well have been special fac¬
the year. In the case of furniture, tors makings for this relationship
the
immediate, postwar
where backlog demands were not in
era
quite as large and supplies were such as the return of many vet¬
erans
to
civilian
life
and
the
somewhat
more
adequate than
with
other
consumer
durable necessary heavy expenditures un¬
goods in both 1946 and 1947, it dergone .in setting up a family
was found that there were twice
household; also the heavy ex¬
as
entailed
by
many
many actual buyers as pros¬ penditures

year

decline had any effect
upon buy¬

ing intentions.

for the

Sales Forecasting

commodity price

the

consumer

income

par¬

ticular

commodity price break also

little

the

This

woul(| imply that as real income

been erased and it

except for

shows the shifts of

buying plans.
bad

Some consumers:
may be

using liquid assets to meet higher
living costs and others borrow¬
ing for necessitous purposes, but

the other had little effect upon

Thursday, June 24, 1948

of
.

Wisconsin

in Gubernatorial

Platform-Making Technique

Of the two chief

vote-getting devices—the party's platform and
the nominee's campaign promises—the platform is first chronologi¬
cally, but second in actual importance. A perfect demonstration of this
us in Philadelphia, in the guise of the most artful and deft
contriving imaginable of the platform as a device to keep the
is given

electorate
any

ideology

line

without

within

Ellison Best who

found

disqualifying

reason.

could without too much

The

any

harried

candidate

Resolutions

who

trepidation, discard the proposals of

wants to

holds

Committee
a

Frank

limit the franchise to white citizens-and

territory in South Africa for the segregation of negroes;

Volume

the

167

vociferous

demands

COMMERCIAL

THE

Number 4710

(like

organizations

some

the

constructing^ tent^ under which any oi the discernible potential

^compose

But

nominees will be able to operate comfortably,

form

In the basic economic phases

we can

neck-and-neck

Past

particularly note success

chameleon-like document. Take, for example, the
coverage of fiscal matters.
Surely the nature of our currency, in..
...
eluding the degree as well as event of debauchery thereof, is a

in-fashioning

race

matter vital to

of life (one way or the other). What is
done about the redeemability of the currency in gold, or in preservation

its

our

in hedging.

.result from the
party

our

now

memory of the aftermath of

power came on

the Democrats' platform of 1932

very way

the

scene.

must

economy;

the performance when

For the text of much of

whatever.

far the shortest section

of the

platform,

-•

headlines
duction

"GOP

VOWS

even

nor

LOWER

balancing

TAXES," actually

the

budget

are

neither tax re¬

forthrightly and

unequivocally promised.
These two items are definitely set forth
merely in the recital of the past achievements of the Republican

Congress.

The Stand of the Candidates

7 On Interventionism, the platform

••

in one place says it„ is the

government's duty "to promote a stable economy," and further on
pleads for the "elimination of unnecessary controls."
.
>
■»
,

inquiry into the philosophy of the leading candidates
strongly confirms the doubts of fiscal integrity and soundness.-, 7 >
Personal

Discussion of the matter with Governor Dewey's "Brain Trust"
gives the definite impression that it is only a question of how much
management it is semantically proper to include under the term

in the

can

administration,

5the

with

\7 77\7

subsequently-designated ' candidate's

own

promises give little better warrant for public confidence. On this
phase we cannot disregard the evidence furnished by our 12-year
President also at a time of change of Administration. And it must
be realized that the subsequent back-tracking was largely caused
by elements other than planned and willful deception.

seriously interested in American politics,
well for an indication of what may lie ahead after

claimed during the summer of 1932:

"Let

;
.

deficits.

Stov the

This

dlficits.

Let

have

courage

to reverse

the

concerns

a full-dress conference
redeemability and gold, Senator
Taft firmly insisted that the problem is "extremely complex, is in
the hands of experts, and I have no opinion about our proper policy
at the present time although I do have 'a hankering for gold'." If
the candidate who is forthright above all others admits only to a
"hankering," surely nothing else than the keenest intuition will suf¬
fice to comprehend the real convictions and intentions of the other
candidates, as well as the true significance of the platform.

•

It must be realized that for "foul" rather than for "fair

were

times

follow the legitimate

when

the

"The business

men of the country, battling hard to maintain
financial solvency and integrity, were told in blunt lan- 7
guage in Des Moines, Iowa
(by then President Hoover) how
close an escape the country had some months ago from going
off the gold standard. This, as has been clearly shown since,
7 was a libel on the credit of the United States. No adequate
answer has
been made to the magnificent philippic of Senator
Glass (with whom the President soon broke) the other night, in
which he showed how false was this assertion. And I might add,
7 Senator Glass made a devastating challenge that no responsible

"One of the most commonly repeated misrepresentations by
Republican speakers, including the President (still Hoover), has
:?■ been the claim that the Democratic position with regard to
money has not been made sufficiently clear.
The President is

It does not take much to have

Incidentally, that ' is why the Democrats' reversal of their 1932
promises was particularly reprehensible. Their policies having orig"inally been declared during the same bad economic circumstances as
attended their later contradictory actions, the latter could not even
on

changed conditiohs.

the "pressure" from

it is difficult to understand what
achievements of the late Congress are
good key to the real Republican platform. Will the new Republican
President follow the principles of the Taft-Ellender-Wagner Housing
Bill, which passed the Senate last April providing for IV2 million
dwelling units annually for the next 10 years, and for V2 million
low-rent housing units at an annual budgetary cost of $150 million
with low-cost insurance and interest; or on the other hand will the
more
limited Martin-Wolcott philosophy and line of legislation be
In the matter of housing too,

is in store, assuming that the
a

followed by the

nominee?

Senator Taft has told the writer that

will become to fulfill its functions

commonly define them, and
necessary it will be for

less

the

the government to

Action Directly

resource

forward

carried

maximum

interference with legitimate

efficiency,

mini¬

enterprise, and maximum effect
upon the stability and progress of
the economy as a whole.
We

task

with

aside

but

easy

the

slogans

neous

this

broader perspective
it is difficult, nor can we

because

set

blink

cannot

striving for

erro¬

that

effect

such effort leads to national

any

or to a departure from
the essential and treasurer charac¬

planning

teristics- of the American
live

system.

and
and
we
cannot preserve our liberties
or our prosperity by playing blind
We

high-powered

integrated

highly

buff.'

man's

economy,

must

fearlessly

they are, and
courageously shape them to what
look

things

want them to be.

In this task

ever-increasing role
for wise business leadership, and
an ever-increasing opportunity for
the
improvement
of
necessary
is

public
this

A meeting such

policies.
one

here

and

today,

bringing

to¬

government

bilities, gives conclusive evidence
the $850 billion question is
foremost in the minds of thought¬
that

ful

people

everywhere.

keep that question utmost

minds,
toward

If we
in our

indubitably can move

its successful

solution.

FIG Banks Place Debs.
A successful

Contrary to Speeches

could the voter possibly know that

certain

conduct

sues

How

rescue

gether for a frank appraisal of
their joint and several responsi¬

representation.

•

types

enterprise

declares: 'We advo¬
cate a sound currency to be prescribed at all hazards.'
That is
plain English. In discussing this platform on July 30, I said:
'Sound money is an international necessity; not a domestic con¬
sideration for one nation alone.' In other words, I want to see
sound money in all the world. Far up in the Northwest, in Butte,
Montana, I repeated the pledge of the platform, saying: 'Sound
currency must be maintained at all hazards.'
In Seattle I reaf¬
firmed my attitude on this question. The thing, therefore, has
been said in plain English three times in my speeches. It is stated
without qualification in the platform and I have announced my
unqualified acceptance of that platform. So much for that mis¬

those

these clearly and em¬

offering of two is¬

of debentures of the Federal

Intermediate

Credit

Banks

was

phatically expressed convictions were really to mean that shortly made June 17 by Charles R. Dunn,
taking office Mr. Roosevelt himself would put us off the gold New York, fiscal agent for the
standard; that our "solemn covenants" were to be repudiated at his banks. The financing consisted of
own direction; that he would sanction the Thomas amendment with
$55,155,000
1.55%
consolidated
its stated purpose of "transferring $200 million of bank deposits, debentures dated July 1, 1948 and
bonds and fixed investments from the hands of persons who now have due
April 1, 1949.
The issue was
it,

who do not deserve it,

soon

back to the other side"; that he would placed at par. Of the proceeds
"old fetish of so-called $34,010,000 will be used to retire

characterize exchange stabilization as an

international

bankers," and that he himself would be the one

"rubberize" and otherwise manage the
;;

How could the voter know that

like amount of debentures ma¬

turing July 1 and the balance of

currency?

Mr. Roosevelt would so reverse $21,145,000 is new money.

As of

the housing plank is emi¬
nently satisfactory to him, as have the advisers of Governor Dewey
with respect to him. Yet it is difficult to see anything contradictory
♦o the principles of the Martin followers, particularly in view of the
limitation of Federal aid to cases "only where there is a need that
cannot be met either by private enterprise or by the States and
w

after

Housing Obscurity

the

that

there

Democratic platform specifically

"The

7.-

be blamed

I firmly be¬
rapidly we
understanding of
how our economy works, the more
able our free enterprise system

seeing visions of rubber dollars. This is only part of the cam¬
paign of fear. I am not going to characterize these statements. ,v
I merely present the facts.
,

pressure

generally: through periods of trial.
"fair weather" integrity.

govern¬

advance with an

advised by the Democratic nominee as follows:

their

leaders

interpretation of the term in ordinary
is off. But the true test comes with the
"squeeze" of adverse conditions, with the abandonment or mainte¬
nance of the "soundness"— like the measuring of individual integrity

would

participation by the

ment in the form of specific gov¬

mum

weather"
matter

a specific definition of principles is vital. Even in the
of the catch-all term "sound currency," many of our political

and

with

you, my

correspondent at

sharp distinction needs to be
between participation by
the government in this task of
better
description and analysis,

activties

sound currency.

currency

drawn

activities, this better
understanding will enable these

Even Senator Taft, widely castigated as "the sound-money, antiapostle," feels himself foresworn from taking a firm
public stand, at least at Convention time. Probably to a greater ex¬
tent than any other legislator, Mr. Taft during the past 10 years has
government would have sold to the country securities payable 7
followed the course of the country's monetary doings.
To as great 7 in gold if it knew that the promise, yes the covenant, embodied
7 in these securities, was as dubious as the President of the United 7
a degree as any man in public life has he shown appreciation of the
States (still Hoover) claims it was.
;'7'";^7 '
important repercussions from the money managers and the spend¬

times,

Economic Understanding

and welfare

>7 And on Nov. 4, but four days before Election Day, we of the
electorate

management

friends, who managed to lay aside a
few dollars for a rainy day" (at Albany, July 30, 1932—while
H. Parker Willis was still one of his technical consultants).

...

7 "

Yet when asked by this

Necessary for Free Enterprise

the

have courage to stop borrowing to meet continuing

policy of the Republican leaders and insist on

yesterday for his stand

out

intervene with
and regu¬
latory activities which are the by¬
theoretically as
January 1949, scrutiny of the solemnly-stated convictions of nominee product of an economic emer¬
Franklin
D.
Roosevelt
(whose personality the present flood of gency. Further, within those areas
memoirs is now making more pervasive than ever) is worthwhile. of governmental action which all
will concede to be necessary, such
Surely the voter, aware of the age-old schism between intervention¬
as the levying of taxes, the man¬
ism and laissez-faire, could think he knew where Mr. Roosevelt stood
from statements like the following which he so resoundingly pro¬ agement of the public debt, and
In any event, for those

The Attitude of Senator Taft

ers.

any

ernmental programs.

Nominee Declarations ;/77/7 7, 77

Unfortunately

farmer

come

force

scientifically.

lieve

At least this indicated profession of faith should reassure invest¬
against the fear of a possible protracted deflation under Republi¬

ors

private enterprise

the antecedent record of the Party in Congress

:,'7'7v7>77^7 7

dp the managing,
^

from

of the Democratic Party in 1932, and equally
now,

man

rain

farm

constitutes the real platform.

7'sound currency." As for redeemability of the currency and redeem¬
ability in gold coin, this is completely out of the question in the
foreseeable future. Hard-and-fast guarantee of abstention from gov¬
ernment interventionism, as a matter of principle, is apparently re¬
garded by even the "conservative" (reputed) Dewey forces as a Shib¬
boleth—as is permanent budget-balancing. As is characteristic with
interventionists, the emphasis is on the who it is that' is going to

case

the Republicans

removal

page

actually could now well serve the

subsidies."

amounting to but'
127 words, which include a stricture against Communists, is devoted
^
"
to the
projection of economic policies.
The entire question of
monetary management and related matters is contained in a pledge
for "a sound currency" (not "at all hazards" even for this),
Even
cne of the committeemen from a Silver State was placated by this.,
Similarly, the entire program of rural electrification is conveniently
wrapped up in the promise of " 'sound' rural electrification." Al¬
though some of the local press is out on the street blaring the
7

foolish

the

("from all
fields of private enterprise except where necessary to develop public
works and natural resources in the common interest"); and an end
to government speculation in farm products and to "improvident
government

from

these weather reports do not force

j Republicans of 1948. We refer to those 1932 planks which demanded

bound up with our very
choice of
Nevertheless, as in 1944,
we find that even the country's "hard-money Tory Party" has straddied and glossed over all this without taking any significant stand
in some form, is
democratic capitalism itself.

integrity

Question

(Continued

it would perform a function simi¬
lar to weather reports although

Platform-Welching

Serious doubt about the true meaning of the party platform

Dollar

another vital issue which, not only the Republican plat¬

straddles, but concerning which both parties will probably be

found to have

The 850-Billion

Reciprocal trade agreements, with their ancillary tariff programs,

Intentions in Economics and Finance

(2779)

alist plank.

it, nevertheless, took real drafting
artistry for Senator Lodge's platform committee to come through in
Russia.

CHRONICLE

about the assumed intra-Party schism between "back-to-normalcy"
and "internationalism," even the "arch-isolationist" Speaker Martin,
as candidate, could run on the so-called Vandenberg internation-

Women's

International League for Peace™ and Freedom) that the Republicans
out-socialize the New Deal in reestablishing domestic controls and
pppeasement

FINANCIAL

himself

election

follow Mr. Tugwell's

"a mandate of

blatant characterization of the July 1, 1948, the total amount of
debentures to be outstanding will

repudiation"?

candidate's amount to $541,470,000.
past record plus the voter's intuition, in lieu of either his words or
those in the platform, must be used as the clue as to what policies Two With
Our inescapable

are

conclusion is that close scrutiny of a

to be expected.

■>.
r.;.
it
*
7;/ 7'777777 ;777777
Bourbeau Douglass
'0.v"\-7.7
:7 The foreign relations plank in the new Republican platform is
(Special to The Financial Chronicle)
Henry Wallace's vote, is estimated at four million by Norman
another perfect example of candidate-voter appeasement, plus the
LOS
ANGELES, CALIF.—Er¬
fact that its function is that of'vote-catching rather than of policy¬ Thomas, who is here attending the Convention as a syndicated col¬
nest
R.
Hansen and James
C.
umnist.
Mr. Thomas, who is himself running for President for the
making. Although first hailed as "the Vandenberg foreign plank,"
Governor Dewey's State-Secretary designate John Foster Dulles has sixth time as the Socialist Party nominee, feels that the usual con¬ Reher, Jr. have joined the staff
volunteered his own full share of responsibility for it; committee
of
Bourbeau
&
Douglass,
510
siderable negative protest vote will this year be transferred from his
Chairman Lodge says the vote of the subcommittee was unanimous.
South Spring Street.
column to Mr. Wallace.
/
Unanimity would indicate that, despite raging editorial hullabaloo

localities." i

■

THE

(2780)

COMMERCIAL

Securities
•

Admiral

Loan

Co.,

Cleveland,

class.

Affiliated
June

York.
•

Fund, Inc.

for each

filed 5,332,673 shares of common stock (par
Underwriter—Lord, Abbett & Co., Inc., New
Price, at market. Proceeds—For investment.

$1.25).

Air

June

Price, par
To make small loans.

No underwriter.

Commuting, Inc., White Plains, N. Y. (7/6)
(letter of notification) 1,060 shares of capital

;

Bosch

Corp.

(7/19)

Maine

Power

Discount

Co,

Georgia,

•

new

Nov. 21

Motors, Inc. (Del.), New York, N. Y.
June 8 (letter of notification)
110,000 shares of capital
stock (par 500) and $55,000
five-year 4% convertible

nied
•

if any is used.
Proceeds
sfor construction of

Central

States Cooperatives, Inc., Chicago, III.
(letter of notification) $120,000 of subordinated
of
indebtedness, carrying 3V2%, 4% and
4y4% coupons. Price—The 3J/2S and 4s will sell at $25
per unit and the 4y4s at $50 per unit.
Underwriter—

April 7 filed $10,000,000 10-year 3% sinking fund deben¬
Underwriter—Name

On April 15, SEC de¬
registration statement.

certificates

Ampal-American Palestine Trading Corp., N. Y.
tures.

pre¬

Brothers; Glore, Forgan
& Pancoast.
Proceeds—For

effectiveness

filed

•

Aquaflight, Inc., Wilmington, Del.

to be

notification) 2,200 shares common stock
(no par).
Price—$100 per ; share. < No underwriting.
Proceeds—For working capital.
Bareco Oil Co.,
Tulsa, Okla.
V
June 7 (letter of
notification) 2,000 shares of

(par $1). Price—$8
bon, McCormick & Co.

share.

per

Mining Co., Spokane, Wash.
notification) 100,000 shares of capital

(par 50). Price—250
development work.

Borderminster

per

share.
:

Exploration

No underwriter.
■

filed

Ltd.,

funds.

shares ($1 par). Under¬
Price—40c per share Cana¬

Proceeds—For exploration

properties.

California

Electric Power Co.,
Riverside, Calif.
June 9 filed
75,000 shares of convertible preference stock
($20 par).
Underwriter
William R. Staats
Co., San
Francisco.
Proceeds
For construction
—

—

and improve¬
company's facilities and for acquisition of prop¬

ment of

erty.
•

•

California Liberty Mines
Co., Carson City, Nev.

June 14 (letter of
notification) 50,000 shares of
^
be offered publicly at $5

—None.

Price—$2 a share.
purchase and general funds.

Salt

Lake

City,

Chemical

Proceeds—For
.

Citizens

Finance

Co.,

Grand

Junction,

Colo.

offered

new 5% preferred in
exchange, and the remain¬
ing 5% preferred will be offered at par.
Underwriter—

Proceeds—For additional capital, the retirement
if such

new

capital is not needed in the

operation of the business, and $71,700 for exchange offer.

Commonwealth

Lead

Mining Co.,

Salt Lake

City,Utah
May 27 filed 2,000,000 shares of non-assessable common
stock (100 par).
Offering—1,303,733 shares are to be
offered in exchange for a like number of shares of Utah

Ophir Mines Co. on a share-for-share basis plus one cent
share to be paid Commonwealth by Utah Ophir

per

stockholders
Proceeds

—

accepting the offer.
Underwriting—None.
exploration
and
development work.

For

Consumers
Missouri

Cooperative Assoc., Kansas City,

Oct. 16 filed

par);

$3,000,000 non-dividend common stock ($25
$6,000,000 of 3J/2% five-year and 4^2% 10-year

cumulative certificates of

indebtedness; and $2,000,000 of

lVz% demand and 2!/2% 6 months cumulative loan
tificates.

No underwriting.

Direct

cer¬

Offering—Offered only to

Private

Price—At face

New York Stock Exchange
Honolulu Stock Exchange

Offices in other Principal Cities

,'>'1

Co.

MEMBERS

•

Chicago

Wires

Dean Witter

Private Wires

wall

San Francisco Stock Exchange
Los Angeles Stock Exchange

STREET, NEW YORK

Telephone BArclay 7-4300
SAN FRANCISCO

selling stockholder.

•

LOS ANGELES

i •

a? c

,.sUmmY •

Delafield,
*,

First Guardian Securities

New

York.

Pro¬
-,

Corp., New York City

June 4 filed 36,000 shares of 5% cumulative convertible

preferred stock
common

for

stock.

($25 par) and 172,000 shares ($1 par)
(72,000 shares of common to be reserved

conversion

Price—$25
Flotil!

of the preferred.)
Underwriter—None.
share for the preferred and $10 for the com¬
.

HONOLULU

Products, Inc., Stockton, Calif.

March 6 filed 385,000 shares of 60 cent convertible pre¬
ferred stock (par $5.) and 325,000 shares of common stock
-

(par $1),
Underwriter — Floyd D. Cerf Co., Chicago.
Price—preferred $10; common $6.
Proceeds — Stock¬
holders will sell 260,000 preferred shares and 250,000
common
shares and company 125,000 preferred shares
..

and

75,000

used for

common shares.
Company's proceeds will be
general corporate purposes. Effective May 5.
j:

Fraser

Products

Co., Detroit, Mich.
<
v
($1 par) common.
Under¬
writers
Campbell, McCarty & Co., and Keane & Co.,
both Detroit.
Price—$5.25 per share.
Proceeds—The
shares are being sold by 14 stockholders who will re¬
ceive proceeds.
Registration statement effective Jan. 16.
Oct.

filed

100,000 shares

—

•

Fundamental

June

filed

Underwriter

•

General

June

Investors, Inc.
shares of capital stock (par $2).
Hugh W. Long & Co., Inc. Price —At

750,000

—

Proceeds—For

market.

Builders

investment.

Supply Corp.

filed

option warrants to purchase com¬
propose a public offering of such
were first acquired by Allen &
Co., underwriters, pursuant to an agreement with 23
stockholders of the company at 10 cents per warrant on

mon

stock.

warrants.

HAWAIIAN SECURITIES

Pittsburgh

Underwriter—Delafield
ceeds to

June 16 (letter of notification) 2,500 shares of 5% cumu¬
lative preferred stock (par $100).
Holders of $71,700
class A preferred and class B preferred stock are to be

of debentures

•

Company is

;

equipment

AND

•

stock (par 20c).
Underwriter— Pacific

Proceeds—For investment.

Fund, Inc., New York

Wash.

common

(letter of notification) 250 shares of common
stock (par $2.50). Price, market (about $6^2 per share).

Utah

PACIFIC COAST

Seattle,

Exchange Buffet Corp., New York

■

stockholders and patrons and members.

Boston

Inc.,

mon.

—

New York

Fund,

open-end management investment company.

June

June 4 filed 669,975 shares of common capital stock, ($1
par). Underwriter—F. Eberstadt & Co. Inc. Proceeds—
For investment. Price—Market.
?
-'
"

common

per share, and
250,000 shares to be issued to the
organizer and promoters
for securing the lease and
option to purchase the mining
properties of the company.
Underwriters
Le Fevre
MacClain and George B. Muser.
Proceeds—To develop
claims.
;

Common stock will be offered to

common

writer—Mark Daniels & Co.
dian

Ottawa,
,

500,000

Expected about July 7.

Price, at market (about $4.39).

stockholders through subscription rights and to

Challenger Airlines Co.,

None.

Co.

Canada
June

Equitable Gas Co., Pittsburgh, Pa. (7/7) ' M
May 6 filed $14,000,000 first mortgage bonds, due 1973,
Underwriters—Names to be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co., Inc.;
The First Boston Corp.; Kuhn, Loeb & Co. and
Smith,
Barney & Co.-(jointly); W. C. Langley & Co. and Glore,
Forgan & Co. (jointly); Harriman Ripley & Co.; White,
Weld & Co.
Proceeds—$14,000,000 of proceeds, plus
563,000 shares of new common stock, will be delivered
to the Philadelphia Co. in exchange for natural
gas
properties now under lease, outstanding capital stock of
Equitable, notes and other claims owed to the Phila¬
delphia Co. and to the Pittsburgh and West Virginia

Northwest Co.

March 1 filed 600,000 shares ($1 par) common
stock, of
which 400,000 are being sold for the company and 200,000 for the account of Claude Neon, Inc. Underwriting;

Black Warrior
June 8 (letter of
stock

(letter of notification) $300,000 of 15-year 5%
debentures, dated July 1, 1948.
Underwriter—None.
Proceeds—For new plant and working capital.
f

Bonds

and preferred stockholders through subscrip¬
privileges. Proceeds—For a construction program
and repair of flood damages/ Expected
by mid-July.

Price—

Dehydrating Process Co., Boston, Mass.

June 9 filed 400,000 shares of

tion

Barlow & Seelig
Manufacturing Co., Ripon, Wis.
May 24 (letter of notification) 8,820 shares ($1
par)
common
stock.
Price—$8 per share.
Underwriters—
McMaster Hutchinson & Co. and Charles W. Brew &
Co.

For

•

Equity

common

Underwriter—Keb-

Berry (D. N.) Co., Denver, Colo.;
*
V.
May.27 (letter of notification) 133,000 shares of common
stock, >.Underwriter—John G.
Perry & Co., Denver/ For
working capital..
jV:- /, -v.;: • <i:

placed privately.

common

Underwriters of common—Coffin & Burr.

bonds.

June 21

par).

•

Gas Co.

—

June 8 (letter of

stock

conversion

for

per

Deardorf Oil Corp., Oklahoma City, Okla. '
June 18.(letter of notification) 250,000 shares of common
stock (par 10 cents) to be sold for the benefit of B. C.
Deardorf.
No underwriter.

and trade notes.

$5,000,000 in mortgage loans
Central Vermont Public Service Corp.
housing in Palestine, $2,500,000 in v
March 30 filed $1,500,000 Series E first mortgage bonds
Loans to transportation and industrial
cooperatives, and:
and an undetermined number of common shares
$2,200,000 in loan to Solel Boneh, jLtd., for public works. /
(no
;■■■■,

reserved

bond with 1,000 common shares. Underwriter
Cunningham & Co., Pittsburgh. To receive cur¬
rent obligations, working
capital, etc. Being placed pri¬
vately.
,■
v
/
•

Company.Proceeds—To retire outstanding bank loans

by amendment,

mon

$1,000

June 21

for

and

($100 par) cumulative

Co., Virginia City,

—S. K.

Co., Dewar, Robertson
property additions and expenses.

Underwriter—None. Price—$200
per unit of $100 of notes and 200 shares of stock. Pro¬

obligations

40,000 shares

($1 per share).
Under¬
develop oil and gas leases.

par

May 14 (letter of notification) $100,000 first lien sinking
fund convertible 5% bonds due 1953 and 300,000 com¬

Underwriters—Lehman

notes due July 1, 1953.

ceeds for payment of
outstanding
general working capital.

filed

ferred.

American

publicly at

Proceeds—To

Nevada

ferred share and one-tenth share of new common for
North Carolina
/
each common share held.
Price by amendment.
Pro¬
June 14 (letter of notification) 22,738 shares of common
stock (no par), 2,677 of which will be sold publicly at V ceeds—For construction and repayment of bank loans.
Central Power & Light Co.
$23 per share. No underwriter. To increase working,

capital.

Inc., Oklahoma City, Okla.
(letter of notification) 25,000 shares of common

Dayton Consolidated Mines

for each pre¬

common

Crader Oil Co.,

writer—None.

Co.

the basis of one-half share of

common

par).

stock to be sold

Nov. 10 filed 160,000 shares

Charlotte, i

Heating Corp., N. Y.

(letter of notification) 149,900 shares of

(no

June 18

($10 par) common. Under¬
writing—Company called for competitive bids Dec.. 8,
petitive bidding. Probable bidders: Glore, Forgan & Co. / 1947 and only one bid, ftiat of Blyth & Co., Inc. and
and Lehman Brothers (jointly); Blyth & Co., Inc., and ; Kidder, Peabody & Co. was submitted and was rejected*"'
Merrill Lynch, Pierce, Fenner & Beane (jointly). Bids—
by the company.
They bid $13.75, less $1.75 under- r(
Bids for the purchase of the stock will be received up to
writing commission. Now expected on negotiated basis
3:30 p.m. (EDT) July 19 at office of Department of Jus¬
through Blyth & Co., Inc. Offering—To be offered to 6%
tice, Office of Alien Property, 120 Broadway, New York.
preferred and common stockholders for subscription on
American

June 11

acquisition of additional office

Radiant Glass

Price—$2 per share.
UnderwriterMercer, Hicks & Co.
Proceeds—For working capital. ~

Philadelphia, for purchase of goodwill, trademarks, etc.
Central

Continental

stock

Carr-Consolidated Biscut Co., Wilkes-Barre, Pa.

June 2 filed 535,882 shares of class B ($1 par) common
stock. Underwriters—Names to be determined by com¬

Proceeds—For

plant facilities.

New Orleans, La.
June 14 (letter of notification) about 6,000 shares of cap¬
ital stock (par $15).
Price—At market. Underwriter—
None. Merrill Lynch, Pierce, Fenner & Beane will con¬
duct transactions for Rexport Corp. and Rexport's par¬
ent, Amerex Holding Corp.

amount.
and

June 14 (letter of notification) 43,200 shares of common
stock (par $1). To be issued to J. S. Ivins Son, Inc., of

....

American

ISSUE

Bank & Trust Co.,

Canal

Thursday, June 24, 1948

Registration
PREVIOUS

SINCE

California Maid

•

stock (no par value), of which 600 shares will be sold
publicly at $100 per share.
Underwriter — Burnham &
Co.
Proceeds—To be used to engage in limited helicop¬
ter operation over routes which the company is presently
certificated to fly or, in limited helicopter commercial
work.
V' ■';
:'r:
.

ADDITIONS

CHRONICLE

Hosiery Mills, Pasadena, Calif.
June 14 (letter of notification) 25,000 shares of common
stock.
Price—Par ($10 per share);
Underwriter—None.
Proceeds—To purchase machinery and equipment and
to pay other expenses of establishing a manufacturing
plant.
Corporation being organized by Kurt Edwin
Thierfelder, Pasadena, Calif. :

June 9 (letter of notification) 750 shares of 5V2% cumu¬
lative preferred stock (par $100);< $60,000 3%%-4xk°/o

one-to-three-year promissory notes.

Now

INDICATES
•

FINANCIAL

40,000
Holders

The

options

Later 8,000 options were transferred at
Allen & Co. associates. Warrants
exercisable on or before June 30, 1950, at $4 jper

May 29,

1946.

15 cents per warrant to
are

share.

The company will receive none of the-proceeds.

COMMERCIAL

THE

"Number 4710

Volume 167

FINANCIAL

CHRONICLE

all shares not otherwise subscribed for by stockholders.
Stockholders, other than Public Service Co./ Will be ^ntitled to * buy the additional 26,369 shares OF Public

NEW ISSUE CALENDAR

Service at the rate of 9/50 of
the record

June 25, 1948

date, July 2.

•

share for each share held

New Jersey Power &

Proceeds—For construction,

June 28,

1948

Chicago, Milwaukee, St. Paul &
Pacific RR., Noon (CDT)_—_-Equip. Trust Ctfs.
Hafner (R. J.) Corp.-^>;._.,—Debentures & Com.

sell the issue.

Common

Phoenix Glass Co—_—

Plywood, Inc.
United Oil Corp.^—,.—-——

Kay Jewelry Co. of San Jose, Calif.
June 16 (letter of notification) 500 shares of class A
preferred stock (par $100), 1,000 shares of class B pre¬
ferred stock (par $100) and 10,000 shares of common
stock (par $1). Underwriter—None.
Proceeds—To es¬
tablish a jewelry store.

Preferred

Southern Union Gas Co.—,——

Common

June 29,

1948
Chicago & North Western Ry.
Noon (CDT)
Equip. Trust Ctfs.
•Louisiana & Arkansas Ry.——Equip. Trust Ctfs.
New York Telephone Co., 11 a.m. (EDST)-..Bonds

New York

Keller & Co., Inc., Boston, Mass.
May 28 (letter of notification) 9,300 shares of cumula¬
tive participating preferred stock and $200,000 of 20year 5 xk % debentures, due 1968. Underwriter—General
Stock & Bond Corp.
For working capital and other
corporate purposes.

June 30, 1948
—«

Louisville & Nashville RR., 11:30 a.m.
Pacific Gas & Electric Co

Preferred

Virginia Electric*& Power CO.
3:15

future construction/
Bids—Bids for/the pur¬
chase Of the bonds will be received up to 11 a.m. (EDST)
June 29 at Room 1600, 140 West St., New York, N. Y.
Price—Not less than par.

North

July 1, 1948
Dining Car Co., Inc.-

Preferred

chase of property and drilling.

will be sold in units of one share of each at $10.01 per
unit and 60,000 common shares will be sold to officers
and directors.
To start industrial loan business.

July 7, 1948
''';//
Equitable Gas Co—Ill—Bonds
Pennsylvania RR., Noon (EDST) -Equip.' Trust Ctfs.
.

Kool-Aid

Bottling Co., Inc. of Calif.,

Northern

March 22 filed 1,500,000 shares ($1

July 8, 1948'//

par) common stock.

Underwriter—Heronymus & Co., Sheboygan, Wis. Pro¬
ceeds—To open and equip bottling plants in California
cities.
Price—$1 per share.

July 13, 1948

•

National Fuel Gas Co.—-——-—--Debentures
New Jersey Bell Telephone

Co.——^.-Debentures
;

1948
Corp., 3:30 p.m. (EDT)-Cl. B. Com.

General Telephone

($5 par).
Price—$15 each.
Underwriter—First Securities Corp.,
Durham, N. C. Proceeds—General business purposes.

credit of $100 against the purchase of a new dining
manufactured

the company,

against

Pacific Gas

and Electric Co. (6/30)
1,000,000 shares of redeemable first pre¬
ferred stock ($25 par). Underwriter—Names by amend¬
ment/probably will include Blyth & Co., Inc. Proceeds

repair

alterations performed by the company for the
purchaser.
Credit certificates issued to any one pur¬
chaser of said preferred stock shall be limited to a total

June

Of $1,000.

—To retire bank loans and finance further construction.

work

Corp.* New York (6/30)/

Price—$100 per share.
Underwriter—None.
Proceeds—For expansion of manufacturing facilities.

Paine, Webber, Jackson & Curtis, Stone &
Webster Securities Corp. and Mitchum, Tully & Co.
Of¬
fering—Holders of common stock and 4.40% preferred
stock of record June 16 have received rights to subscribe
on or before June 29 to the new shares at the rate of

4 filed

Expected about June 30.
,

—

•

share for each Six common shares held and
at the rate of one new share for each 4^ preferred shares j
held.
Price—-$24.75 per new common share.
Proceeds
—To make additional investments in the common stock
new

one

car

June 4 filed 208,260 shares of common (par $20). Under¬
writers

March 15 filed 100,000 shares of capital stock

tive preferred

;.V\ /July;

Old North State Insurance Co., Greenville, N. C«

notification) 1,500 shares of $5 cumula¬
stock (no par value). Purchaser of each
five shares will be entitled to a certificate entitling him

•

Westinghouse Electric Corp.——^——Debentures

American Bosch

v/"/7

',(7/1);

—Preferred

Tanner & Co.—

■vvi

Dining CarCo., Inc., Harrison, N. J.

June 21 (letter of

July 15, 1948
:

Kullman

Minn.j

Power1 Co. * (of

due July, 1,
1978, and 200,000 shares ' of cumulative preferred stock
(no par).
Underwriting—Names to be determined by
competitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc. (bonds only); Smith, Barney & Co. (stock
only); Lehman Brothers and Riter & Co. (jointly both
issues); Merrill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co. and White, Weld & Co,, (jointly on bonds).
Proceeds—For construction and to pay off bank loans.

Public Service Electric & Gas Co.——Preferred

States

June 3 filed $10,000,000 first mortgage bonds,

Sheboygan,

Wisconsin

Wheeling & Lake Erie Ry.—_—Equip. Trust Ctfs.

Canadian Oils

Limited, Calgary, Alberta
March 11 filed 903,572 shares (no par) common stocks
Price—70 cents each.
Underwriter—F H, Winter & Co.,
New York.
Proceeds—875,000 shares being sold by
company and 28,572 by stockholders, Proceeds for pur¬

; >tv>;,,■■■'July 6,1948
:.. :":•>/ Commuting, Inc.--—Capital:

Air

finance

Kennedy Systems; Corp. of Tennessee,
Memphis, Tenn.
June 9 (letter of notification) 29,500 shares ($10 par)
preferred stock and 89,500 shares (lc par) common stock.
No underwriter.
Preferred and common (29,500 shares)

(EDST)—:—Common

p.m.

Kullman

Common
(EDT)_Bonds

Telephone Co.

(6/29)
May 28 filed $90,000,000 refunding bonds Series F, dto»
July 1, 1981.
Underwriters—To be sold through com¬
petitive bidding.
Probable bidders: Morgan Stanley &
Co.; Halsey, Stuart & Co. Inc.
Proceeds—To reimburse
the treasury for capital expenditures already made, to
retire bank loans incurred in plant expansion and to

—

General Telephone Corp

bonds, due 1978..

Underwriting—Names to be determined through com¬
petitive bidding/ Probable bidders; Halsey, Stuart & Co*
Inc.; The First Boston Corp. and Kidder, Peabody & Co.
(jointly); Lehman Brothers; Harrimart Ripley & Co.;
W. C. Langley & Co. and Glore, Forgan & Co. (jointly);
Union Securities Corp.
Proceeds—For construction and
improvement of property.

•

;:-—-Common

Light Co.

June 8 filed $6,000,009 first mortgage

Irwin-Phillips Co., Keokuk, Iowa
June 1 (letter of notification) 10,000 shares of 5% cumu¬
lative participating preferred stock ($10 par) to'be sold
on behalf of three stockholders.
Price, par. Underwrit¬
ers—Slay ton & Co. have been employed as agents to

^Common

pay off advances made by American/Telephone & Tele¬
graph Co. (parent) for cohstruction and general corpora
ate purposes. • Expected about July 13.
V;'

United States Television Mfg. Corp

(2781)

Lawrence Warehouse

Co*, San Francisco, Calif.
June 18 (letter of notification). 10,000 shares of 6%
cumulative convertible preferred stock (par .$25), and
4,000 shares of common stock (no par), to be reserved
for conversion of said preferred stock on the basis of
share of coipmon

one

Pacific TelecoinCorp., San Francisco, Cal.
June l0 ( letter of notification). $300,000 4V2% equipment
trust certificates, series A, dated July 1, 1948; and due
July 1, 1951. Underwriters—Gearhart & Co., Inc., and
Paul D. Sheeline & Co.
For equipment.
"*
H

■.,/

for each 2% shares of preferred.

Cleveland
June 18 (letter of notification) 2,500 shares of common
stock (no par value). Underwriter—The Chicago Pneu¬
matic Tool Co. plans to buy issue for resale. Purpose—
Issued in part payment of purchase price of certain real

/ Pacific Telegraph & Telephone Co., San«Fran*
May 28 filed 601,262 shares ($100 par) common stock.
' Underwriting, none. Offering—Holders of preferred and
common stockholders of record June 15 are given, rights
Longchamps, Inc., New York
to subscribe on or, before-July 7 at $100, per .share to
June 14 (letter of notification) 250 shares .of common
the .extent of one share for each six shares of preferred
stock (par $1). Price, market (about $6 per share).,
or common held.
Proceeds—To reimburse company's
Underwriter—Delafield & Delafield. Proceeds to selling
stockholder,
treasury for additions, etc.
;■/ V:/;/
•/'//'■'
•
Pacific Western Oil Corp., Los Angeles
McAleer Manufacturing Co., Rochester, Mich.

estate.

June 15

•equities of its subsidiaries.
««•'*

;

■

Glidden Co.,

■-#'

June 22

Corp., Smithtown, N. Y. (6/28)
(letter of notification) $75,000 of 10-year 5%

debentures arid 750 shares of common stock (par $1).
Price—At par. Underwriter—None. Proceeds—To pay
for organization, etc., expenses; machinery and equip¬
ment to mills; balance for working capital.
Holan

(J. H.)

Corp., Cleveland, Ohio
June 4 (letter of notification) 29,723 shares ($1 par)
common stock.
Price-r-$3»25 per share. Offering—26,000
shares offered for subscription by stockholders of record
June 10 on a one-for-five basis.
Rights expire June 24.
The

other

3,723

are

reserved

for

sale

Underwriter—Cunningham & Co.
struction and new machinery.

-employees.

key

For con¬

Idaho-Montana Pulp & Paper Co., Poison, Mont.
May 17 filed 100,000 shares of 4% cumulative preferred
stock ($100 par) and 500,000 shares ($10 par) common
stock.
Underwriter — Tom G. Taylor & Co., Missoula,
Mont.
Price—$300 per unit, consisting of two shares of
preferred and 10 shares of common stock. Proceeds—To
erect and operate a bleached sulphate pulp mill with a
200-ton per day capacity.

Ideas, Inc., Washington, D. C.
(letter of notification) 4,500 shares of common
stock. Price—$10 per share. No underwriter. Working
'^capital.
o
June 9

Illinois Bell Telephone Co.,

Chicago, III.
shares of capital stock (par $100).
Underwriter, none. Offering—To be offered pro rata for
:£ubscription by shareholders of record June 2. Ameri¬
can Telephone and Telegraph Co. (parent) will purchase
387,295 shares. Proceeds—To pay advances from Ameri¬
can Telephone and Telegraph/its parent; any remainder
•'Of; proceeds will be used in improving telephone plant.
June 4 filed 389,995

Indiana Gas & Water Co.,

June

Inc.

(letter of notification) not in excess of 6,000
common stock
(par $10).
Price—At market.

Underwriter—Glore, Forgan & Co. Proceeds—To selling
Stockholder.
.//-_
•
_/// \•

Indiana
■

Gas

Water

Co.,

inc.,

Indianapolis,
'

Indiana

June 21 filed 60,000 shares of

additional common stock

($10 par) to be offered to its stockholders
of

one

the basis

hew share, at $12.50 per share, for each 10 shares

held. The company's parent, Public Service Co, of
Indiana, plans to acquire only 62 of the 26,701 shares
to which it would be entitled, but has agreed to purchase

now

■

May 21 filed 450,227 shares ($10 par), capital stock Underwriting-r-None. Offering—To be offered by the own¬
er/ J. Paul Getty, President of the Company; from time
to time on the floor of the New York. Stock Exchange,
or "to specific, persons, firms or corporations," ,in sales
outside the Exchange./ Price—At approximate market.

(letter of notification) 7,000 shares of common
stock (par $1).
Price—$5.50 per share. Underwriter—
C. G. McDonald & Co.
Proceeds—No purpose given.

(R. J.)

Hafner

Price—At par for preferred stock. Underwriter—Wagenseller & Durst, Inc. Proceeds—TO retire bank loans.

Masco Screw Products Co., Detroit, Mich.

(letter of notification) 141,600 shares ($1 par)
stock. Price—$1.75 per share. Offered to stock¬
holders of record May 22 in ration of one new share for
each'2% shares held. Rights expire July 10. No under¬
writer.
To repay a loan and for working capital.

June

common

•

National

Fruit

Product

Co.,

Va.

Pepsi-Cola Bottling Co. of Memphis, Tenn.

June

(letter of notification) 58,000 shares ($1 par)
stock.
Price — $5 per share. Underwriters—
Leftwich and Ross and Bullington Schas & Co., Memphis.
Proceeds—To retire notes, to purchase stock of whollyowned subsidiary (Bottling Co. of Greenwood, Miss.),
and to purchase equipment and supplies.

Inc., Winchester,
V'"'-W-/■■'/,//. ■/:

June 15

(letter of notification) 30,000 shares of common
stock to be offered publicly.
Price—Par ($10 per share).
Underwriter—None.
Proceeds — For plant expansion
and increase of working capital.
,
:
Fuel Gas Co., New York
(7/13)
$13,500,000 sinking fund debentures, due
1973,
Underwriters—Names to be determined by com¬
petitive bidding, probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Harriman Ripley & Co. and
Glore, Forgan & Co.; Goldman, Sachs & Co. and Leh¬
man Brothers (jointly).
Proceeds—To purchase 320,000
additional shares of United Natural Gas Co. common

Permanente Metals

(6/30)

UnCorp. and Dean Witter &
Co.
Price by amendment.
Proceeds—For general cor¬
porate purposes, Expected about June 30.
derwriters—-The First Boston

4 filed

($25 par), and to purchase 48,500 additional shares
Expected about July 13.
National Securities & Research Corp.

Corp., Oakland, Calif.

June 9 filed 600,000 shares ($1 par) capital stock.

National

June

common

•

Phoenix Glass Co., Monaca,

Pa.

(6/28)

June 15 (letter of notification) 149,000 shares of common
'

stock (par 50 cents) to be sold at $2 per share, and 10,000
stock purchase warrants entitling the holder to purchase
share of common stock at par.
Underwriter—Kayer
Proceeds—To modernize equipment and in¬

stock

one

of Iroquois Gas Corp.

Real & Co.

•

crease

17 filed 38,700 shares

June

in First Mutual Trust Fund

Underwriter—National Securities & Research
Price—At market. Proceeds—For investment.

(par $1).

Corp.
•

New

England

Power Co.

June 22 filed $11 million, first
1978.

due

petitive

Underwriters—To

bidding.

Probable

mortgage bonds, series B,
be

determined

bidders

Stuart & Co. Inc.; The First Boston

com¬

include—Halsey,

Corp.; Kidder, Pea-

body & Co.; Lehman Brothers; Merrill Lynch, Pierce, c
Fenner & Beane; Kuhn, Loeb & Co.; Salomon Bros. &
Hutzler and Union Securities Corp, (jointly); Kidder,

Peabody & Co. and White, Weld & Co. (jointly). Pro¬
ceeds — To purchase properties of the Bellows Falls

Hydro-Electric Corp., to purchase that portion of the
New Hampshire section of the Bellows Falls-Pratts
Junction line owned by the Connecticut River Power Co.
and for repayment of bank loans.

•

working capital.

Plywood,

Inc.,

Detroit, Mich. (6/28-7/2)
June 17 (letter of notification) 10,000 shares of common
stock (par $1),
Price—$3.12^ per share. Underwriter
—Baker, Simonds & Co.; Proceeds — To go to John C.
Emery, Jr., selling stockholder.
Powder River Oil Co., Denver,

Colo.

May 11 (letter of notification)-400,000 shares (100 par)
common

stock.

Price—25 cents.

Hughes and Co., Denver,
Public

Service

Underwriter

—

R. L.

For working capital.

Electric

Gas

Co,

(7/8)

June, 11 f%d 200,000 shares ($100 par) cumulative pre¬
ferred stock.

Underwriters

—

Names to be determined

through competitive bidding.
Probable bidders: Morgan
Stanley & Co.; The First Boston Corp.; White, Weld &
Co, and Union Securities Corp. (jointly). Proceeds—For
property additions and improvements. Expected about
July 8.

New Jersey Bell
June

Telephone Co. (7/13)
debentures, due July

11 filed $55,000,000 40-year

15, 1988. Underwriters— Name to be determined
through competitive bidding. Probable bidders: Halsev,
Stuart & Co. Inc.; Morgan Stanley & Co.
Proceeds—To*

Republic Aviation Corp., Long Island, N. Y.
June 4 filed 42,000 shares ($1 par) common stock, issu¬
able upon the exercise of stock options.
Options for this

(Continued

on page

42)

(

,' ,' 1

Stewart J. Lee & Co.

(Continued from page 41)
stock, exercisable at $7.25 per share, are held by eight
individuals and the estate of another, now deceased. For
Riley Stoker Corp., Worcester, Mass.

par) com¬
Underwriter—Han-

Price—$11%

per

share.

rahan & Co.
•

Roosevelt Oil & Refining

Corp., Mount Pleasant,

Michigan
135,000 shares-of 6% cumulative convert¬
preferred stock (par $12.50) and 107,000 shares of
common stock (no par value).
Offering—All of the pre¬
ferred shares and 44,000 common shares are to be of¬
June 22 filed
ible

fered

publicly and the remaining 63,000 common shares
are
to be purchased principally by officers and em¬
ployees. Underwriter—F. Eberstadt & Co. Proceeds—
Plus a $1,300,000 bank loan to acquire 168,422 shares of
$1 par Roosevelt Oil Co. common stock at $9.04 per
share, 2,500 shares of Simrall Corp., no par capital stock,
at $444.45 per share, and 1,000 shares of C. L. Maguire,
Inc., no par common stock, at $631.45 per share, for a
total consideration of $3,265,110.
r
Savoy Oil Co., Inc., Tulsa, Okla.
June 8 filed 150,000 common shares (250 par). Under¬
writing—None. Offering—Stockholders are to be given

rights to subscribe to 100,000
two-thirds

for

new

shares at the rate of

each share held.

The

other

the exercise of warrants. An unspecified
not be offered for sale to
the public.
Price by amendment.
Proceeds—To be
added to the general funds of the company.
share

upon

number of shares may or may

Schuyler-Wilson Co., San Francisco '
May 26 (letter of notification) 15,000 shares of ($10 par)
preferred A stock (with warrants) and 90,000 common
shares (par $1), reserved for warrants.
Price, par for
each
class.
Underwriter—Hannaford
&
Talbot, San
Francisco, will act as selling agents. Each purchaser of
one preferred share entitled to buy six common shares
at $1 per share. For working capital and expansion.

Shackleton
June

Piano

Co., Louisville,

(letter of notification)

underwriter.

United

Ky.

10,000 shares

Oil

($10 par)

unsubscribed shares later to the public.
Price—$10
per share.
No underwriting.
For additional working
any

Air

Co.,

Probable

record

•

To drill test well.

the basis

one

each

for

five

Rexport

Corp. plans

tional expenses;

United

—

sell

•

7,070

stock

(par 100) and 5,000 shares of 5% cumulative pre¬

June

ferred stock (par $5). Price—For common, $1 per share,
and for preferred $5 per share. Underwriter—None. Pro¬
ment and

working capital and to

pay

for costs of equip¬

panies,
loans

June

(letter of notification) 76,032 shares of capital
stock
(par 100), reserved for issuance against 76,032
stock purchase warrants, issued or issuable to holders
or

former holders of

common

stock of the Southeastern

Corp. dissolved June 27, 1947.
between

July

purchase

$3.50

per

one

1948-June

stock

1953,

for

are

and

each

exercisable

holders

warrant

may

held

share.

•

Southern

each.

($100 par).

Squankum

Feed

Supply Co.,

Inc.

Standard Tube Co., Detroit
May 14 filed 136,667 shares of Class B common stock
(par $1).
Underwriting—None.
Offering—Offered*■ to

shareholders of record June
10, in the
new stock for each three
shares held
at $3 per share.
Rights expire 3 p.m., June 25. Fort
Industry Co., owner of 122,757 shares of Standard Tube

ratio of

common

one

stock has agreed to purchase such
portion of the above
shares as shall not exceed in cost the
aggregate sum of
/

Steak 'n

:■

participating

preferred

shares (50c par)

common

Under¬

writer—White & Co., St. Louis, Mo.
Price—$8 for the
stock and $2.50 for the common.
This stock
is being offered
by stockholders who are

preferred

members of

family.

Stuart Aerial

Insect Control,
Inc., New York
June 11 (letter of
notification) 200,000 shares of common
stock
(par 100).
Price—$1 par share. Underwriter—
James T. DeWitt Co.,
Canton, Ohio. Acquisition of busi¬
ness of P. J.
Murray of Oxnard, Calif.

Tanner & Co.,
June 15 (letter of

Metal

Products

shares.

Boston

Insurance

that

•

Corp. will underwrite the
Central

Maine

new

Power

Nashville

headed

(6/30)

of the

issue

excess

VA.%.

will

Madison

Gas

financing will

Electric

Co.

necessary

1948 and the remainder in

Pennsylvania

RR.

1949.

(7/7)

•

Company will receive bids

up to noon (EDST)' July 7
Jr., Vice-President, Room 1811,
Broad Street Station Bldg., Philadelphia 4, Pa.> for the
purchase of $9,900,000 equipment trust certificates, series
T, dated May 1, 1948.
They will mature $660,000 an¬
nually May 1, 194,9-May 1, 1963. - Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; Har¬

Ripley & Co. and
Harris, Hall & Co. (Inc.).
t

utilizing

Lehman
„

Brothers

(jointly);

;

As the

First

Texas

Electric Service Co.

company's construction program progresses addi¬
tional new money will be required from the-sale-of
bonds, stocks or other securities and the company is
making careful studies as to the manner in which this
new money will be obtained, according to the
company's
:j annual report.
r *
'
»
„

It is expected

RR.

at office of Geo. H. Pabst,

Co.

underwriters

riman

share for each three shares held.

group

and

to provide funds for
contemplated plant additions aggregating about $3,000,000, according to the annual report, but the form and
amount of the financing have not yet been determined.
Of said amount, approximately $1,900,000 will be
spent

Stockholders in July will vote on approving the issuance
of 100,000 shares of additional capital
stock, which will
be offered to stockholders in September on the basis of
one new

Inc.;

replace treasury funds used
for capitalizable expenditures, provide funds for future
similar expenditures and increase working capital. Prob¬
able bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley

New

the additional stock.
•

Bros.

Series II, dated April 1, 1948, and maturing April 1, 2003.
Bids must be received by the company not later than
11.30 a.m. (EDT) June 30.
The price is not to be less
Proceeds

Co.

No definite plans have been made for

The
com¬

Probable

than 98 and the rate of interest not in

June 28 stockholders will vote on increasing the author¬
ized common
stock from 500,000 shares to

•

Boston

United

Public

Service

Corp.

June 10 the Middle West Corp., asked

the SEC to permit
172,393 shares
(par 25 cents) in United Public Service Corp. to Doyle,
O'Connor & Co., of Chicago, who has contracted to buy
said shares for $905,063 (or at $5.25 per share).

stock.

the

bonds. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; Kidder, Peabody & Co. and W. E. Hutton & Co. (jointly); Merrill Lynch,
Pierce, Fenner &
Beane, and White, Weld & Co. (jointly): Salomon Bros.
& Hutzler; Harriman Ripley &
Co., Inc. Expected in July.

gage

sale of its

• V

Co.

June 9 company advised that it proposes to sell
through
competitive bidding $5,000,000 first and general mort¬

Virginia

common

Electric

stock holdings of

Power Co.

(6/30)

Indianapolis, Ind.

1958.

•

Chicago Milwaukee

St.

Paul

Pacific

RR.

(6/28)

Company will receive bids
at

office

Severs,

to noon (CDT) June 28,
Vice-President, Room 744,

Union Station Bldg., Chicago, for the purchase of
$3,820,000 equipment trust certificates, series "EE."

Certificates

mon
man

$191,000 semi-annually Jan. 1, 1949-July 1,
Halsey, Stuart & Co. Inc.; Salo¬
Bros. & Hutzler; Harriman Ripley & Co. and Leh-

Probable bidders:

Brothers

Westinghouse; Electric Corp. (7/15)
June 24 the company will register with the SEC $80,0QO,000 of long-term convertible debentures which are ex¬
pected to be offered publicly about the middle of July
by underwriters still to be named.
Stockholders will
vote July 12 on increasing the authorized indebtedness
from $50,000,000 to $150,000,000.
Proceeds—To repay

(jointly); Harris, Hall & Co. (Inc.)

Chicago & North Western Ry.

(6/29)

Bids for the purchase of $5,340,000 equipment trust

cer-

tificates, to be dated Aug. 1, 1948 and to be due in annual

(7/15)

notification) 3,000 shares of 5%%
cumulative preferred stock
(par $100).
Holders of 492
shares of presently
outstanding 6% cumulative preferred
stock will be offered in
exchange 492 shares of
the

new

5%% preferred stock, share for share.
Price—Par and
dividends.
Underwriter—City Securities Corp.
Proceeds—To retire $225,000 of
promissory notes and for
working capital.

accrued

•
Texas Union Oil
Corp., Houston, Texas
June 18 (letter of
notification) 800,000 shares of common
stock (par 100). Price—37^0 per share.
Underwriter—

Engineers Public Service Co., on June 18 asked the SEC
for authority to sell at competitive bidding sufficient
shares of Virginia Electric & Power Co. common stock to
yield $900,000.
Proceeds—To pay off a like amount of
promissory notes held by Irving Trust Co. of New York.
Bids—Bids for the purchase of the stock will be received
up to 3.15 p.m. (EDST) on June 30' by the Engineers
Public Service Co., Room 503, 90 Broad St., New York,
N. Y.
Probable underwriter, Stone & Webster Securi¬
ties Corp.
,

stock, ($1 par)
and
160,000
stock; of which 40,000 will be

sold and the remainder reserved for
conversion.

•

American

•

will mature

Shake, Inc., Bloomington, III.

Feb. 2 filed 40,000 shares of 50c
cumulative convertible

the Belt

•

share of

$250,000.

bonds,

Charleston.

private

company

1,000,000

Farmingcfale, N. J.
May 24 (letter of notification) 1,000 shares $5.50 cumula¬
tive preferred stock (par $100).
Price, par. Underwriter
—Fidelity Securities & Investment Co., Inc., Asbury
Park, N. J. Working capital.

Class B

company also
par value of the shares from $10 to

proceeds used to retire $2,500,000 of
augment working capital.
No plans have
disposition of the increased common
or- ..r-rr^rr/r

Louisville

Prospective Offerings

Inc., New York.

Price—By amendment. Expected to be
offered at par.
Proceeds—To repay bank loans and fi¬
nance additional construction.

per

The company has issued invitations for bids for the
pur¬
chase of $30,000,000 first and refunding mortgage

four

(Inc.)

III.
May 24 (letter of notification) 22,000 shares common
stock (par $1). Underwriter—Wm. C. Honey & Co. Price
,

bidders:
Halsey,/Stuart & Co.& Hutzler; Harriman Ripley & Co.
Lehman Brothers (jointly); Harris, Hall & Co.

Zonolite Co., Chicago,

Dallas (6/28)
shares of 5% cumulative preferred
Underwriter—E. H. Rollins & Sons,

proposed to

basis

the

Salomon

Proceeds—Retire $400,000 of bank loans, and for

Union Gas Co.,

and

cates.

construction purposes.

the

& Arkansas Ry.
(6/29) ' *
.
has issued invitations for bids to be re^
ceived June 29 for $1,760,000 of equipment trust certifi¬

stockholders

Louisiana

The

June 7 filed 8,000 shares of $5 preferred stock (no
par).
Underwriters—To be filed by amendment.
Price—$100

by amendment.

June 4 filed 25,000
stock

Warrants

30,

>■;

increase

stock

and

stock.

Co.,

'•

been announced for

Huntington Station, N. Y.

Service

Co., San Francisco.

;

issue of 30,000 shares of preferred stock.
would be sold to two insurance

preferred

of New York City.
Price—Pre¬
$8.25. Underwriter—None.

West Virginia Water
West Virginia
/

Southeastern Public Service Co.

new

thorize

(letter of notification) 3,000 shares preferred /
(no par) and 3,000 shares common stock (par $1).
Price—Preferred, $95; common, $3. Underwriting—None.**
Working capital.

construction.

•.

stock

ceeds—For

■

Buchman

.Vitarama Corp.,

Insurance

Lily-Tulip Cup Corp.' •
v
:: '~.l •
July 27 stockholders will vote to increase the authorized
common stock from 250,0C0 to
500,000 shares, and to au¬

the balance for working capital.

common

underwriter.

•

For organizational and opera¬

Virginia Iron, Coal & Coke Co., Roanoke, Va.

$20;

Fund

plans to reduce the
$7.50 each.
;.r

Rayon Corp., New York City

Esther

subscribed

June 7 filed 3,750 shares of 4% preferred stock ($25
par)
and 15,000 shares ($10 par) common stock, to be sold
by
Mrs.

Traditional

for by the stockholders will be sold at public
sale at or near the then market price.
The

stockholders.

ferred

facilities

for each five held at the contemplated
price of $30
share.
Any remaining authorized shares not

States Television Mfg. Corp.
(6/25)
(letter of notification) 10,000 shares of common
stock (par 500). Price—At market (about $3
per share)."
Underwriters—Willis H. Burnside & Co., Inc., and Mercer
Hicks & Co.
Proceeds—For account of three selling

Snyder Chemical Co., Inc., Topeka, Kans.
June 18 (letter of notification) 50,000 shares of common

Firemen's

offer

United

•

additional

June 19 announced directors have authorized
in the number of shares to 1,000,000.
It is

June 16

capital.

construct

banks.

California

Marcn zv fnea 9,95u snares
<,no par)
common stock.
Price—$1,000 each. Each share is to be accompanied by
a "production warrant"
permitting the holder to buy a
proportionate share of the company's output.
Under¬
writing—None.
Proceeds—To provide capital for the
purchase and operation of a plant with an annual pro¬
ductive capacity of 4,000,000 pounds of viscose filament
rayon and 8,000,000 pounds of viscose staple fiber.
•

Co.

application with the Federal

companies and
White, Weld & Co.

Corp., Oklahoma City, Okla. (6/28)
June 17 (letter of notification) 980,000 shares of common
stock (par 10 cents) together with 150,000 option war¬
rants.
Price—Common stock at 30 cents per share and
the warrants for one cent per share.
Underwriter—R.
Proceeds

Commission

ance

Oil

V. Klein Co.

Gas

filed

transactions.

United

Boston

stockholders' approval, tentative agreements have been
entered into to sell these securities to a
group of insur¬

now

of its shares
and the Trinway Corp. plans to sell 1,730 of its holdings.
Merrill Lynch, Pierce,
Fenner & Beane will handle
•

First

approximately $56,000,000.
Financing will consist
of $20,000,000 of 3V2% convertible debentures and
$36,000,000 of 3Y4% first mortgage bonds.
Subject to the

Co., Kansas City, Mo.
June 16 (letter of notification) about 8,800 shares of
capital stock (par $5), Price—At market. Underwriter—'
None.

The

Co.

cost

—

United Brick & Tile

Natural

Paso

14 company

Power

Expenditures for equipment and fa¬
cilities, retiring bank loans and debentures.
•

June

Lines,

Proceeds

for bonds if issued:

Inc.; Dillon, Read & Co.;
Burr, Inc. and Spencer Trask & Co. (jointly).

Coffin &

common stock.
Ripley & Co., Inc., New York.
Price—By amendment.
Offering — Temporarily post¬
poned on June 22.
To be made to common stockholders
of

bidders

Corp.; Halsey, Stuart &

Inc.,

Underwriter—Harriman

held.

Thursday, June 24, 1948
pansion program.
It adds: "That requires early addi¬
tional
financing to the extent of about $65,000,000."

Inc., Chicago
June 7 filed filed 369,618 shares ($10 par)

To be offered first to stockholders and

stock.

common

Proceeds—For organizational ex¬

equipment, cost of drilling four wells and working
capital.

50,000 shares will be issued to officers and others at $2.50
per

CHRONICLE

Salina, Kan.
June 11 (letter of notification) $250,000 of common stock.

June 3 (letter of notification) 7,000 shares ($3
stock.

FINANCIAL

pense,

Union-Standard

general funds.

mon

COMMERCIAL

THE

(2782)

instalments either in

office

15 years, will

be received at

bank loans which mature in

Williams, President, Room 1400, 400 W.

Madison St., Chicago, up to noon (CDT) June 29.
able bidders: Halsey, Stuart & Co. Inc.;

Prob¬

Harris, Hall &
(Inc.); Salomon Bros. & Hutzler; Harriman Ripley
Co., and Lehman Brothers (jointly); Kidder, Peabody
Co., and Dick & Merle-Smith (jointly).

•

Co.
&
&
•

Detroit

June

financial

Edison

company

condition

;

Co.

the

end

seeking to improve its
it

may

raise the money necessary to carry on its

advantageously
$100,000,000 ex- "

(7/7) >
ft
The company has issued invitations tor bids to be re¬
ceived July 7 for $3,200,000 in equipment trust certifi¬
cates to mature in semi-annual instalments over a period
of 10 years. The proceeds will be used to finance not
more

reports it is

1951.

Wheeling & Lake Erie Ry.

than 80% of the cost of new equipment.

bidders:
&

Co.

& Co.

Probable

Ripley & Co., Inc.; Halsey, Stuart
Inc.; Salomon Bros. & Hutzler, and Harris Hall
Harriman,

(Inc.).

figured

not

had

writers

i7in" that this is always a pos-

NATIONAL SHIRT SHOPS

3% Bonds Offered by

sibility.

Consumers Power Preferred

•

,
,

;

The

■

issue

new

;

(

•

Halsey,

dently not yet taking as kindly to
preferred stock issues as
those interested would like.
At
Power

remarked

been

have

of their

some

con¬

little
new-

"reaching" in bidding for
issues
presumably
found

some

measure

the fact that

The

set at 100.18991 for a $4.52

Baltimore

Railroad

Washington

$17,570,000

.up

successful

The

general

its

was

84.75 rate.

put

Ooj.

bid

planned

group

reoffering at 102% to yield 4.40%.

mortgage bonds for competitive

bidding

and

banking

groups

In fact

sue.

ber

Possible Explanation

investment

four

sought the is¬
of

one

their

i won the deal, that pursuing the

for public

The

new

Electric

has

issue

new

$25

of a

highest bid of the banking
the works.
a price of 98.5599 for
f
The current projects all have
a ' 4%
coupon,
or a net * interest
been done on a competitive bid
cost to the road of about 4.08%.

;

the

yield
4%.'

eration

the issuer and the bankers will be

to the

disposed to price the offering at¬
tractively. This realization hangs

So¬

unexpectedly, had entered a bid
Of 109 for the loan with a 3V£%

heavy

quite
those

coupon.

fund

100.76%

to
'

ance

company was

paying approxr

imately $1,900,000 more than the
issuer would have realized had the

underwriting

undertaking to do their fi¬

Imperial Oil Offers
Rights for Purchase of

merce

group

International Pet. Sfk.

8,728,190 shares of common stock

■

(no

headed

How It Happens

Co.,

basis

the

International

stock

32/100ths

for

Proceeds

people probably will be

inclined to wonder how it happens
that the bankers find themselves,

rants will be

Canada*

act

Imperial.

in a great while, in a position
offering an issue in these cir¬

cumstances. *.
,

The

held

Corporation

Byrndun

Corporation at
1948, declared a

June 17,

the

Class

270 MADISON AVE., NEW
The

"A"

Participating Stock, a divi¬
dend of
$3.59 per share on the Second Pre¬
ferred
Stock,
a
dividend
on
the
combined
holdings
of
Class
"A"
Participating
Stock,
Class
of

one

Hat

cents

Stock and Common Stock
Class "B" Common Stock of

Corporation

America

each

than

29 shares of 34

stock

lieu

tional

shares;

25,

payable

June

30,

stockholders of record June

1948

the

the Corporation's

Slock,

Common

multiple

shares;
on
the combined holdings
of
Class "A" Participating Stock, Class "A" Com¬
mon
Stock
and
Common Stock
totaling less

dividend

quarterly

YOEK 16

declared

have

Directors

regular

Common

"A"

FACTORS

STANDARD

1948,

'. /

«•:'

...

EDWIN B. MEREDITH, Treasurer

cents per share in cash In

dividend; no dividend on frac¬
all payable on July
29,
1948,
record on July 6, 1948.
H. G. FAHLBUSCH, President

to stockholders of

June

17, 1948

PACIFIC GAS AND ELECTRIC CO.

CLCF,

DIVIDEND NOTICE

Foundry

American Car and

i-'

Common Stock Dividend No. 130

Company
vm

-y;

■

30 Church Street

•

There

has been

declared

dividend of

one

(1%%) on the
preferred stock of this Company outstanding,
payable July 7, 1948, to the holders of record
stock at

the

close of

1948.

of Directors

declared

1948

June

16,

dividend for the

cash

second quarter of the year of 50 cents

and three-quarters per cent

said

Board

The

*•

New York 8, N. Y.

business

June

share upon the Company's Common
Capital Stock. This dividend will be
paid by check on July 15, 1948, to
per

shareholders of record

common

business

June

The Transfer Books will

not

the

25, 1948.
be closed.

mailed

by Guaranty Trust Company of

New York.

San Francisco,

J. Beckett, Treasurer

California

Charles J. Hardy, Chairman
C.

Howard

Wick, Secretary

June 17,1948

A. dividend of l3/4%, amounting to

$1.75 per share,

Colonial Mills, Inc.
498 Seventh Avenue
NEW YORK

current

on account of the
quarterly dividend period

1948, has been
payable July 15,1948 on
preferred stock
Company to holders of pre¬

ending July 31,
declared
the

18, N. Y.

outstanding

The Board of Directors of this

Corporation has declared a

ferred stock of record at the close
of business

July 2, 1948.

40^

per

share and

dividend of

40^

per

A dividend of

regular quarterly dividend of

an extra

have been declared

cents

CHARLESTON, S. C.
Glasser

has opened

M. M.

offices at 42

Street, to engage in the

Laurens

securities business
railroad

agent for

and

bonds,

record

'•

the outstanding

stock

the par

the

value of $1.00

holders

com¬

Company, of
per

share,

stock

of
on

common

July 2, 1948.
COLONIAL

EDWARD

15, 1948,
mon

payable July

record at the close of business

June

28, 1948.

June

and investment trusts.

the

payable July 9, *1948 to
stockholders

specializing in

municipal

stock outstanding,

capital

Glasser in Charleston

per

MILLS, Inc.

H. A. WAY

June 23,

WERNER, Treasurer

1948

Secretary

15/1948

DIVIDEND NOTICE

which

It results from a practice

•

about

-V - '

Directors

meeting

of a

Montreal Trust Co.,

will

once

1948.

of the

will

issue

of the cost, estimated at not
less than $3,017,000.

common

on or

June 28,

"
the

80%

Purchase war*

available

July 3, 1948.

business

dividend of $1.59 per share on the Participating
Preferred Stock, a dividend of $2.59 per share
on

Treasurer.

payable July 1, 1948 to holders of record

•

Some

1948

16,

2V4% equip¬

provide for not exceeding

used to

each share of Imperial

capital stock held.

'June

Com¬

prices to yield from 1.20%

1958, inclusive.

(United States dollars) per share,

purchase

of International
Ltd.,
at $9.20

value)

par

Petroleum

FRANCIS FISKE,

certificates, series 1948,

ment trust

chase warrants)

tion, but, even so, it was observed
that, here at least, the insurance
company would have done better
to have purchased the bonds from
the bankers, the more or less
usual course.
?
'' -

'•

this

$2,400,000 Richmond, Fredericks¬

underwriter did not have to worry

involved in tjistribu-

authorization,

Commission

burg & Potomac RR.

*| The buyer, of course, unlike the
costs

2.375%, according to maturity. The
( The stockholders of Imperial Oil certificates, issued under the Phil¬
top underwriting, bid, been .ac¬ Ltd. of record June 18, 1948, will adelphia
Plan,
mature
$60,000
cepted.
receive rights (evidenced by pur¬ quarterly Dec. 1, 1948 to Sept. 1,

about

Its

28,

by Halsey, Stuart & Co. Inc. and
including R. W. Pressprich & Co.
and Freeman & Co. is offering

nancing via competition.

The

Equip. Tr. Ctfs. Offered

today, subject to Interstate
was

Transfer books will not be closed. Checks will

;

calculated, repre^
sented a premium of a little less
than 11 points over the best bankr
irig bid and meant that the insur¬
it

This,

YORK

NEW

Directors

the close of

sinking

Rich., Fred. & Pot. RR.

heads

the

over

Board»

THE BYRNDUN CORPORATION

ranging from

from

100%.

issue, they believed to be theirs,

Assurance

the

scaled

prices

when it was announced that the

Equitable ' Life

dividend

pf With the immense scope of the
offering, it is realized that both

ciety of the United States which,

COMPANY

a
quarterly
WVj cents per share)
on
the
Preferred Capital Stock, and a
dividend of fifty cents "(504) per share
on the Common
Capital Stock, both payable
on
July 15, 1948 to stockholders of record
at the close of business June
25, 1948,

1948.
>

Company has
this day declared the regular quarterly dividend
of $1,375 per share on the outstanding 5-V2<sSeries Cumulative Preferred stock of the Com¬

re¬

103.75% to 100% and through op¬

j turned to the job of selling the
bonds had been awarded

j' basis.

had

hardly

bankers

the

'But

will

bonds

new

deemable at prices

•

■■

declared

"par" to ■f. basis while the forthcoming Paapproximately |. cific Gas undertaking will be
carried through on a negotiated

buyer

system.

intends to increase
pipe line

company

The

set

was

its

STREET,

Board

The

by about 42%, or from
294,000,000 to 420,000,000 cubic
feet per day.
;

firms fixed

Reoffering

23rd,

June

consumers

value in

par

capacity

system for delivery of gas to dis¬
tributors
and
direct
industrial

realization that Pacific Gas

will apply

the rated capacity of its

sluggishness of
preferreds was said

million shares of

The

delivery

might

apparent

current

usual course, books were opened

subscription.

the

for

that

partial explanation

least

offer

num¬

confident that it had

was so

consideration

One

company

record

EDWARD PRAHER, Secretary.

$14,000,000 of the net proceeds to the
payment of its 1%% notes due
Sept. 17, 1949 and its 2 3/16%
notes due May 1, 1956, and the
balance, together with other of
its cash resources, to the construc¬
tion of additions to its properties,
including facilities to increase the

$4.64 dividend rate
while the third was 100.376 for

jafter all.
Philadelphia,

The

rate.

dend

100.15 for

The

divi¬

SMELTING

MINING

have

.June 17, 1948

pany,
as at

group

bonds

earlier

BROAD

first

Co.

STATES
AND

The .Directors

CITY INVESTING COMPANY

$28,000,000

won
award of the
competitive sale on a
bid of 100.22713.

The

200,000
this

sold

bankers

week with the best of three bids

not alone

were

UNITED
REFINING

Divi¬

June

Gas

declared

has

Transfer books will not be closed,
SYLVAN COLE, Chairman of the

pipe line sinking fund
bonds, 3% series due June 1, 1968
at 100%% and accrued interest.

the "sticky" side.

company

consolation

they

bit

senior

new

proving

freres recently as inclined to do a

Consumers

that

stockholders

mortgage

Co.'s

who

publicly

Natural

Southern

circles
Underwriters

offered

rate it was reported in dealer

any

underwriters

Directors

dend No. 27 at the rate of 20 cents per share
the Common Stock, payable July 1st, 1948,

Co. Inc. and

Stuart &

associated

new

Board

INC.

DELAWARE,

OF
The

Halsey, Stuart Group

.'.pi.

evi¬

market

DIVIDEND NOTICES

Southern Natural Gas

institutional bid, although real-

(2783)

CHRONICLE

FINANCIAL

COMMERCIAL

THE

Number 4710

167

Volume

has grown up over a long period
of
time.
The
bankers
usually
know how many among

ing, of the bids approaches the
I natural

move

is to ball up

dividend of 40i per share

the

That

the

case

of this dividend.

instance.

this

Common
.

with the

■

•

-..

■

*—

•'

•

J-

■{'-'

SITUATION WANTED

YORK

authorized the payment of the

following quarterly dividends;
571 cents per share on the
Common Stock, payable July
31, 1948, to stockholders of
record on July 5,1948.
28 cents per share on the
Preference Stock, 4.48% Con¬

yice President and Cashier

TRADER-ORDER CLERK
commission

with

position

Box

Stock

with

Chronicle, 25 Park Place, New York 8,
N.

HELP

WANTED

TRADER-SALESMAN
by high-grade,
over-the-counter firm.

wanted

well capitalized

An experienced
established clientele will
account of $150
weekly against
a
liberal commission
basis.
Address our Advertising Agency:
"CHZ" Room 2800, 55 Liberty Street,

man

with

offered

New

York..

drawing

•

•»

■

••. •*.

Preferred and Common Stock of

vertible Series,

payable July
stockholders of

WORKS

THE UNITED PIECE DYE

Financial

To the Holders of

firm.

Exchange

Commercial

20,

desires

i accounts

given that at the special meeting of stockholders field on June 16,
1948, more than 83% of the 6%% Preferred Stock.and more than 82% of the Common
Stock voted in favor of the Plan of Recapitalization of the Company dated May 1, 1948.
The Certificate of Amendment putting into effect the terms of the Plan was accordingly
filed in the State of New Jersey on June 16, 1948.
- y ; - .
* In exchange for each share of 6%% Preferred Stock under the" Plan, the holder will re¬
ceive 1 share of new $4.25 Preferrd Stock of the par value of $75 a share and 9 shares of
new Common Stock of the par value of lOtf a share; and in exchange for each
share of
Common Stock the holder -will receive one-third share of new Common Stock of the par
value of 10<f a share,.. • •;
t
•
••...•.
: *'• /''i ''"v '
Certificates for the new $4.25 Preferred Stock, Common Stock and Scrip Certificates for
fractional shares of Common Stock to which you are entitled under the terms of the Plan
of Recapitalization are now available for delivery and may be obtained from Bankers Trust
Company, Corporate Trust Department, 16 Wall Street, New York 15, New York.
.Notice

hereby

31, 1948, to
record on July 5,1948.
Initial dividend of 23.12
cents

per

the Pref¬

Stock, 4.56% Conver¬
tible Series, covering the per¬

erence

iod May 18-July 31, 1948,
payable July 31, 1948, to

stockholders

record

'#•
V

THE

UNITED

PIECE DYE

By CHARLES

t> Y(

June 18,1948

)

also

has

been

declared the
share

Stock, ($5 Par), pay¬
July 15, 1948 to holders of Com¬
Stock of record at the close of

able
mon

business

30, 1948.
resolution adopted at

June

Pursuant to

the Stockholders' Meeting

held on July

representing a
Common Stock of

10, 1945, no Certificate
share

shares of

$10 each is recognized,
until surrendered, and
Certificates for new
Common Stock of the par value of $5
each shall have been issued therefor.
Holders of Certificates for shares of

the par value of

for any purpose,
a

Certificate

Common Stock of the par

value of $10

urged to exchange
for Certificates for
Common Stock of the par value of

each are. therefore,

Certificates,

$5 per share, on the basis of two
of new Common Stock $5 par
each

the

WORKS,

•

Secretary

1948.

the Common

for

BLOUNT, Jr., President.

SI J>

There

quarterly dividend of 37V2<! Per

new

o. v. showers,

quarterly

regular

July 15,

such

July 5,1948.

Ltd., inc.

dividend of
Cumulative Pre¬
ferred Stock, 4% Series, and the regu¬
lar quarterly dividend of 901 per share
on
the Cumulative
Preferred Stock,
3.60% Series have been declared pay¬
able August 1, 1948 to holders of Pre¬
ferred Stock of the respective series of
record
at the close of business on
The

$1.00 per share on the

The Board of Directors has

FINANCIAL NOTICE

June 16, 1948

Philip Morris &Co.

Dividend No. 1

A.J. Egger

;

New York, N. Y.
•

4.56% Convertible Serie*

THE CHASE NATIONAL BANK

big one, was that under-

■;.

:V£/'!
,

Dividend No. 5
Preference Stock

OP THE CITY OF NEW

Dividend No. 154

Preference Stock

|The only difference, and it sure
,v»was a

COMPANY

4.48% Convertible Series

EDISON

holders of record at

The transfer books will not be closed in connection
payment

PHILIP MORRIS*
SOUTHERN CALIFORNIA

the 7,400,000 shares of the capital

the close of business July 2, 1948.

jcompetitors 'and compare bids

was

City of New York has declared

stock of the Bank, payable August 2,1948 to
i, J

which have been placed.r

''Call for

for] open¬

And, -when the time

BANK OF THE CITY OF NEW YORK

The Chase National Bank of the

;

given issue.
i

NATIONAL

CHASE

THE

their own

^umbers .are planning to bid for a

par

shares
value,

of Common Stock of
value of $10.
L. G. HANSON. Treasurer.
share

COMMERCIAL

THE

(2784)

FINANCIAL CHRONICLE

Thursday, June 24, 1948
posals

BUSINESS BUZZ

advanced

House

Congress

on.

•

window

•

the

by
the

during

White

past

two

but ignored by Congress.

years,

also

tossed

without

the

out

apparent

qualm the White House propo¬
sal to grant a specific

BeVmd-the-Scene Interpretation)

Capital

from the Nation'*

tax reduc¬

tion of $40 for every person.
*

During the 80th Congress, how¬
little progress was achieved
effecting a reduction in govern¬
ment spending, even without re¬
gard to expanded
defense and
foreign aid programs. The latter
two
subjects
brought about
a
penetration beyond a peace-time
ever,

in
'

the heat

D. C.—This Congress, which has left

WASHINGTON,

heat of political conventions, has probably re¬
tenaciously than any Congress in a little more than a

of Washington for the
sisted

government encroach¬

decade, strongly-backed proposals to extend
ment over the business of the£
nation.

the

though

casting up the ac¬
Congress, a little

in the course of

counts

concluded this

believe

that

have

Observers

which came into vogue here
with
Harry
Truman's assertion
that the 80th was the second worst
Congress in history.
i"

was

the

remark¬
resisting the

showed

80th

fortitude

of
the government doesn't

temptation to spend billions
money

liave

scores

benefits
in

shown

election

of the

resistance

This

voters.

and bet¬

new

millions

was

year,

advance of a political campaign

Congressional

the

which

apparently

majority

the

had

weakness in

the face of the fact that it was

Administration

known the

sup¬

draft

the

said to bring into bold

"bad"

leadership.
ERP

in the nature of

end

veterans,

are

like.
if

ance

was

typified

the

public

chagrined when the House initial¬
ly cut the legs from under the

clearance

draft.

leaders

House

would

dies

less

were

spending

programs

passage

Senate

the

disclosed

back-track

between

coordination

lack

of
[

leadership in the majority
'

party.

opposing them.

why
*

Furthermore,

Congress

-chalked up this kind of a record

4a. the face of a terrific obstacle.
That obstacle

was

the lack of the

leadership.
If the White House
and
the
Congressional majority
are of the same party, the business
of

legislation is much simpler. The

Congressional leaders look to the
President

initiate

and

coordi¬

nate

party policy. They may dis¬
and then violently with
their President, and force him to
agree now

modify his strategy—but there is
one
place,
one
individual,
to
whom they can look for leader¬

The majority party of the
80th Congress had leaders, but no
leadership. Its dispersion of lead¬
ership was inherent in its lack of
ship.

control either of the White House

possession of a single acknowl¬
edged, outstanding, indisputuable
party leader.
• *
or

Aggravating

problem

was

Congress
tial

the

leadership
the fact that the
full of presiden¬

was

aspirants,

most

Taft

open

notable

and

being

covert,

Senators

Vandenberg, Speaker

Martin, and

vice-presidential
the horse,

candidate, the

this

was

that

full of followers of

presidential hope¬

ful.

fact

This

dispersion

leadership bobbed

up constantly
during the 80th Congress, most

recently

the

public
was

housing
tagged as

fight
Taft

the

This

bill.
a

over

bill

measure.

One of the foremost House lead¬
ers

had

was

influential

other

top

hopeful
Taft

Dewey

and he

followers.

House

was

man,

leader

explain

his own.
Stopping
phase of the killing

tremendous backing in the
House was explained by a far
greater support.

governors,

hind

offensive in any marked degree

"That

son

of mine back home is

Now he wants to

come

getting lazier every day!
Washington and be a Senator!"

biggest part of the explanation,

the

scope

Congres*

majority. That control is

third

the

Congress,

votes

all

Against all the
the

•

House.

the

health

that

aid

education,
got

strong.

was

much of

Congress, because it

the

some¬

sional

government

rents for homes, with

range

social

security,

coverage

duction

(and

after

passing

killed

was

expanding

the

Seatex Oil

govern¬

"the

social

frontiers"

cannot be brought about except
r

way to

increase in taxation.

M. S. WlEN & Co.
ESTABLISHED
Members N.

increase in taxation would thus
40

prerequisite to enactment
of the sociological pro-.

1919

Security Dealers Ass'n

Exchange PL, N. Y. 5

HA. 2-8780

Teletype N. Y. 1-1397

some

Sen-

Teletype—NY 1-971

HAnover 2-0050

Firm Trading

the

Markets

"civil

pressed

FOREIGN SECURITIES

rights" just far enough to help
inflame

Southern

Demo¬

statute,

employers

requir¬

change

em¬

All Issues

r.ABL mams & r.o. wc.

■

LERNER & CO.

FOREIGN SECURITIES

SPECIALISTS

Congress, by affirm¬
action, did more than halt

expansion of controls

Riverside Cement A & B

Spokane Portland Cement

ployment practices.

80th

Ralston Steel Car

Oregon Portland Cement

ing the social life of the nation
Federal

Trading Markets:

com¬

cratic revolt, but without chang¬

the

Lonsdale Co.

House

Congress

ative

Finishing

propo¬

mittee.

The

purely domestic
during the 80th Congress.

hearing. Aid to local edu¬

cation,

ing

built

group

any

after

there

curtailment

that the tax cut is enacted, ex¬

panding

ment benefits of all kinds. Now

pressure

Belle Isle Corp.

than

subject

the act further with a

ate,

re¬

vote,

Texas Gas Transmission

government revenues which has
an
important bearing on
the

circumscribing the caprice

other

achieved

sals

Dorset Fabrics

view of

refused,

significance,

three White House vetos)

of millions

however, plans are under

only because

Congress

U. S.

tighten

80th

leadership
come

nificance is that with a tax re¬

in¬

necessity to win suLficient votes to override the veto,
the scope of the law's reforms was
curtailed substantially.
Already,

backed

main, to give these

curtail-,
ment in tax liabilities. This sig¬

tle into the

the

that

suggest

its immediate effect of

con¬

involving vast com¬
mitments for the future, got lit¬
the

spokesmen

this tax cut has a certain long-

Due to the

proposals,

news

vote in the

$5 to

the big labor unions.

"run" in

was

to let

in danger of pass¬

reduction

billion

prospective
political
ven¬
geance of the leaders of nearly all

All the other

by Senator Taft.

loosened

est

issue

and

these proposals, only aid to edu¬
cation

grip

cluding the

abled, and Federal financial aid
to

the

expanded

dis¬

House

the

be¬

though it

acknowledged

in
in¬
dividual income taxes. Congres¬
$6

whole "sociological" program of

national

program,

insurance,

ing,

behalf
*

Congress also enacted

of Ad-

White House backing for the

probably the decisive consider¬
ation
behind the rejection of
into

trols.

White

the

explained

was

force

public

interest is involved.

eventual abolition of such

imum wages, a proposal vigor¬

espoused

of union leaders when the

view to paving the way for the

Congress avoided raising min¬
ously

Congress

what

overcome.
*

the

minsitration prestige, it is noted,

the

obstacle

hefty

expanding

of the wage-hour law.

holds

administrative

edges of

interpretations

equivalent through the veto to
a

was

state

incurring the wrath of the larg¬
ragged

sional

generally

fused

however, lies in the fact that the
White House is controlled by
the

Even

House, it

labor

even

mobilized

were

bill.

organiza¬

mayors,

and

that if opened to

of the ter¬

ritory lost to governmentalism
during the last 16 years.
The

opposition to

the

was

The

was

backing, but its

through the Senate and

organizations,

part

GOP-controlIed Con¬
was unable to go on the

in recapturing some

man on

Senator Glen H. Taylor of Ida¬

ho. Or it

for

program

"show" because of

Taft's

In the end veterans'

the

gress

the

believed

duration
This

tions, hundreds of
Absence of central leadership

slum

which

its

and

House

killing
and

irrevocable subsi¬

years'

initially got

this

But

approved.

the

housing.

Senator

previously

and the Congress the blame for
r

far below the authorization

was so

housing
programs,

entail

public

chagrined when the actual appro¬
priation first adopted for ERP

greatest resist¬

to large spending programs

majority had backed ERP and the
draft.
Consequently they " were

porters would get the benefit of

proposing

Probably the

be be¬

The Congressional

point.

bigger benefits to
pay for
some
employees, and the

greater

government

relief this
Whether
"good" or

is said to

measures

side the

first chance in 16 years to cap¬
ture the Administration, and

ing programs, the Congress did
expand some of the smaller ones,

fiasco

the

billion for govern¬
In order to "hold

$40

the line" against many big spend¬

the draft and foreign aid is

over

indicates

record

the

that

ter

expenses.

Part

conclusions

their

Another

able

level
ment

was

element in its defeat.

game

Housing bill, al¬

observers do not
the decisive

of the omnibus

the

Investment Securities

New York 4, N. Y.

50 Broad Street

AFFILIATE: CARL MARKS & CO. Inc. CHICAGO

10 Post Office

Square, Boston 9, Mass.

Telephone Hubbard 1990

Teletype BS 19

advance of spending programs, by

withholding legislative action.

Herbert H. Blizzard & Co.
"CAME OUT OF
DE
It

WILDERNESS"
was

common

in 1865.

preferred

today.

What the Congressional leaders
as one of their main achieve¬

cite

ments

was

the

enactment

This

l^w for the first time im¬

posed

obligations

labor

upon

unions to desist from certain

was

adopted over a Presidential
and despite the opposition

veto

Clear thru-—Montgomery, Scott & Co.
New York A Philadelphia

this

union

leaders.

proposition

gress

was

This

law

that

Con¬

not disposed to

raise

was

minimum wages without at the
same

Empire Steel Corp.

Common

Susquehanna Mills

"■ •''> V

•p;v
;.

BOUGHT—SOLD—QUOTED

un¬

fair labor practices, and provided
some other limits upon the discre¬

tion

123 South Broad St., Philadelphia 9, Pa.

EMPIRE STATE OIL CO.

the

Taft-Hartley law, an amendment
to the Wagner Labor Act of 1935.

time sandpapering off the

Kobbe &

Company

INCORPORATED
Members National Association of

Securities Dealers, Inc.

55 Liberty Street, New

Telephone
BArclay 7-2663

'
-

; :

York 5, N. Y.

Hill, Thompson & Co., Inc.
Markets and Situations for Dealers

Teletype
NY 1-277

120 Broadway, New York
Tel. REctor 2-2020

Tele. NY 1-2660

Volume

167

Number 4710

THE

COMMERCIAL

FINANCIAL

CHRONICLE

Pictorial Insert I

Investment Dealers Association oi Canada

Trevor

H. L.

Moore, McLeod, Young, Weir & Co., Toronto;
Gassard, Director of Education, Investment Dealers
Association

of Canada

James Gairdner, Gairdner & Co., Ltd., Toronto, retiring
President of the I. D. A., addressing annual meeting at
Manoir

C. J. Dale, Pemberton & Son, Vancouver; F. J. Brennan, F. J. Brennan & Co., Ltd.,
St.

John, N. B.; C. T. Graham, Waterloo Bond Corp., Kitchener, Ont.; V. S. Castledine,
V. S. Castledine & Co., Ltd., Ottawa

C. P.

Keely, Nesbitt, Thomson & Co., Toronto; J. I. Crookston, Nesbitt, Thomson &

Co., Toronto; A. D. Hunt, W. C. Pitfield & Co., Montreal; J. D. Bulgm, Dominion
Securities Corp., Winnipeg

Henri Turgeon, Greenshields & Co.,

Montreal; J. L. Levesque, Credit Interprovincial,
Ltee., Montreal; Erne Lacroix, K. C., Credit Interprovincial, Ltee., Montreal

Richelieu

E. M. Kennedy, Midland Securities
v

Corp.} London, Ont.;

J. E. Sydie, Sydie, Sutherland & Dnscoll, Ltd.,

Edmonton, Alta.

Gerald Ryan, L. G. Beaubien & Co., Montreal; E. F. Dunstan, Director of
Marketing,
International Bank for Reconstruction and Development, New York; James Ga.'rdner,
Gairdner & Co., Ltd., Toronto; Julien Collins, Julien Collins.&

Co., Chicago

Hal

Murphy, Financial Chronicle, New York; F. O. Evans, McLeod, Young, Weir &

Co., Montreal; H. S. Backus, McLeod, Young, Weir & Co., Ltd., Toronto

W. T. White, G. E. Leslie & Co., Halifax; W. J. Borrie, Pemberton & Son, Vancouver,

Ltd., Vancouver; T. H. Bieler, Assistant Treasurer of the Province of Quebec

Pictorial Insert II

THE

COMMERCIAL

FINANCIAL CHRONICLE

Holds Annual Meeting June

W. A. Lofft, Wood, Gundy

& Co., Toronto; J. H. Joyce, Financial Post, Toronto;
Co., Ltd., Toronto; Dudley Dawson, Dudley Dawson,
Ltd., Montreal

Rod

Copland, Oldjield, Kirby & Gardner, Ltd., Winnipeg; James Richardson, James
Toronto; Eric D. B. Kippen, Kippen & Co., Inc., Montreal

P. K.

Reg Steers, R. D. Steers & Co., Ltd., Ottawa; Hector Vidricaire, James Richardson
& Sons, Vancouver, B. C.; Joseph W. G. Clark, Executive Assistant to President of
Investment Dealers Assn.; Hall Tingley, Wood, Gundy & Co., Ltd., Vancouver, B. C.

son

Edward Mulqueen, Mills, Spence

H. E.

& Co., Ltd., Toronto; Murray Cox, Greenshields
Co., Inc., Montreal; L. G. Mills, Mills, Spence & Co., Ltd., Toronto; W. T. K.
Collier, Collier, Norris & Quinlan, Montreal

J. D- Bulgin, Dominion Securities Corp., Winnipeg; H. N.
Bawden, Dominion Securities Corp., Toronto; D. H .Ward,
Dominion Securities Corp., Toronto

12-16, 1948

Richardson & Sons,

J. A. Rhind, Mills, Spence &
,

Knubley, Bell, Gouinlock & Co., Ltd., Montreal; John Ledoux, James Richard¬
Sons, Montreal; Walter L. Downes, Kippen & Company, Inc., Montreal; H. H.
Rath, Thomson & Co., Montreal

Cochran, Cochran, Murray & Co;, Toronto; Louis Gelinas, Geoffrion, Robert
Montreal; Ernest Savard, Savard, Hodgson & Co., Montreal; R. W.
Gouinlock, Bell,, Gouinlock & Co., Toronto

Gelinas,

Wood, A. E. Ames & Co., Ltd., Toronto; S. B.
Kimber, A. E. Ames & Co., Ltd., Montreal
"

Thursday, June 24, 1948

J. A. Weldon, W. C. Pitfeld & Co., Montreal; Ralp]
Jones, Eastern Securities Co., Ltd., Charlottetown P. E. I
j; H. Christie, R. A. Daly & Co., Ltd., Toronto

Volume 167

Number 4710

THE

COMMERCIAL

At Manoir

P. R.

R. H.

W. T.

bien

Dean, Nesbitt, Thomson & Co., Ltd., Montreal; G. G. Ryan, L. G. Beaubien
& Co., Montreal; Jack Kingsmill,
Secretary of the I. D. A.

Styles, Treasury Dept., Province of

Quebec; J. H.

Quebec

Moran, Greenshields & Co., Ltd., Montreal; Joseph Beaubien, Jr., L. G. Beau¬
Co., Montreal; W. D. McAlpine, Brawley, Cathers & Co., Toronto; L. F.
Webster, Beatty, Webster & Co., Toronto

Collins & Co., Chicago; Trevor F. Moore, McLeod, Young, Weir
Co., Toronto; Louis G. Mudge, International Bank for Reconstruction and Develop¬
ment, New York

E. R. Pope, Milner, Ross & Co., Toronto; H. N. Stanbury, Stanbury & Co., Ltd.,

Halifax; R. N. Trudeau, Savard, Hodgson & Co., Montreal
^

W. A. Woodcock, Charles H. Burgess &

Toronto;

Arthur Dymond, Fatrclough & Co., Ltd., Toronto

Minister of the Treasury of the Province
-

Pictorial Insert III

Julien Collins, Julien

Hamel, Fugere & Co., Quebec; John Graham, John Graham & Co.,

Ottawa; J. E. Garneau, Garneau, Boulanger & Co., Quebec; J. N. E. Grenier, Grenier,
Ruel & Co., Quebec
'
]
' I
'

Bieler, Deputy

CHRONICLE

Richelieu, Quebec

Payn, W. C. Pitfield & Co., Ltd., Toronto; J. E. Choat, James Richardson &
Sons, Toronto; Geo. Beves, Calvin Bullock, Ltd., Montreal

Pierre Fugere,

G. F.

FINANCIAL

C. 8. ^Tatk^D'/Ss & Co^Kitch'ene^oSt'
Alta., D. K. Ddttets, U. n. vatteis & Co., isutcnener, uni.

Pictorial Insert IV

THE

COMMERCIAL

FINANCIAL CHRONICLE

Thursday, June 24, 1948

Reports Large, Enthusiastic Attendance

D. J.

Wilkins, Fry & Co., Toronto; G. E. A. McCain, G. E. Leslie & Co., Montreal;
Ramsay, McTaggart, Hannaford, Birks & Gordon, Ltd., Montreal; D. G. Simpson,
Midland Securities, Ltd., Toronto; J. A. D. Falkner, Wood, Gundy & Co., Montreal
J. S.

Fisher, Eastern Securities Co., Ltd., St. John, N. B.; R. M. Jones, Eastern
Ltd., Charlottetown, P. E. I.; W. J. Kirby, Eastern Securities Co.,
Ltd., Moncton, N. B.

Securities Co.,

J. T. Troyer, Thomson &

McKinnon, Toronto; C. de V. Welsford, Bank of Canada,
Montreal

N. D. Young, Dominion Securities

Corp., Toronto; Peter
Kilburn, Greenshields & Co., Montreal

S. B. Hammond, Royal

Securities Corp., Montreal; W. E. Dunton, Auditor, Eastern
District, Investment Dealers Association of Canada; W. E. Macfarlane, Mead & Co.,
Ltd., Montreal

J. A. D;

Falkner, Wood, Gundy & Co., Ltd., Montreal; R. O. Buli, Gairdner & Co.,
Ltd., Toronto; Bob Howard, Gairdner & Co., Montreal

W. A.

Wall, and E. J. McDonnell, Intercity Security Corp., Toronto

R. G. McCulloch, Osier, Hammond & Nanton,
Winnipeg;
Donald W. Partridge, Canadian Alliance

Corp., Montreal

H. S. Griffin

Wood' Gundu &

Co.

Halifax

Gundy, Wood, Gundy & Co., Toronto

•

Volume

167

Number 4710

THE

COMMERCIAL

FINANCIAL

Bond Club of Los

D. J. Bogardus, Bogardus, Frost & Banning; James S. Riley, Bingham, Walter &
Hurry; George Schindhelm, California Bank; Theodore E. Hammond; F. C. De Lap,
John B. Dunbar &. Co.; R. H. Moulton, R. H. Moulton & Company;
Gerald M, Goodman, Lord Abbett & Co.

Louis M.

Fabian, Fabian & Co.; Fred H. Denison, Calvin Bullock; Harry W. Hurry,
Bingham, Walter & Hurry; John G. Gallaher, Putnam Fund Distributors, Inc.;
Lawrence S. Pulliam, Weeden & Co.

A. C.

(

;

Purkiss, Walston, Hoffman & Goodwin; Gordon B. Carey, Pacific Company of

California; W. S. Patterson, Blyth & Co., Inc.; and E. J. Evans, First California Co.

Angeles

Chef Pache; Donald W.

Pictorial Insert V

CHRONICLE

Claude C. Richards,
tennis tournament

Moulton, R. H.Moulton & Company, and

R. H. Moulton & Company, doubles winners in the

W. S. Patterson, Blyth & Co., Inc.; Sylvester M. Scott,

Jr., Blyth & Co., Inc.; Gerald
John B. Dunbar,

M. Goodman, Lord, Abbett & Co., Inc.; Charles E. Driver;
'
John B. Dunbar & Co.

Baseball Chairman Steve Manning, Paine, Webber, Jackson & Curtis, makes

to baseball winners "Casey's Crocks"

awards

THE

Pictorial Insert VI

COMMERCIAL

FINANCIAL

CHRONICLE

Annual Field Day at Bel-Air

French, Blyth & Co., Inc., turns newsboy to sell "Bawl Street Journal" to
Advertising Agency, and W. Wayne Glover
(seated) of California Bank

Elwood J. Robinson, Elwood J. Robinson

F. C. De Lap,

Thursday, June 24, 1948

Country Club

John B. Dunbar & Co.; Warren H. Crowell, Crowelly Weedon & O.

(with tally-sheet); R. N. Gregory, Harbison & Gregory (pointing to peg); Homer D.

Crotty, Gibson, Dunn & Crutcher

James~E. Edgerton, Edgerton, Wykoff & Co., receiving
award from Clifford E. Poindexter,

Turner-Poindexter

W. S.

Patterson, Blyth & Co., Inc., Golf Chairman, tees
off; Mr. Patterson was runner-up in the golf tournament

Co.

After-dinner entertainment held the

with

this group

William JS.« Hughes, Wagenseller & Durst, Inc.; Donald
E. Summerell, Wagenseller *& Durst, Inc.

net score of 69

attention

-t*,rf'''.

of members till the early hours

Volume 167

THE

Number 4710

Attended by 250

Lloyd C. Young, Pacific Company of California;
of California; V, C. Smith, Pacific

COMMERCIAL

Pictorial Insert VII

FINANCIAL CHRONICLE

Members and Associate

Joseph F. Gallegos, Pacific Company
Company of California

Walter J. Braunschweiger, Bank of

Members

America N. T. & S. A.; John B. Dunbar,

John B. Dunbar & Co.

Mli
aBoEm

and John L. Devlin, all of
Bateman, Eichler & Co.

Harold H. Butterworth,

Willard G. De Groot,
-

Lawrence S.

Pulliam, Weeden & Co.;

Co., Inc.; Carey

Clifford E. Poindexter,

Turner-Poindexter &
of the Bond Club;

S. Hill, Hill Richards & Co., Vice-President
George H. Earnest, Fewel & Co.

■HHP
i/'*'

V ■■

IfiSlptlli
*

I
'

Two Baseball Teams

"Casey's Crocks" and "Royce's

1 8wf

Wrecks" Line up before

the game

THE

Pictorial Insert VIII

COMMERCIAL

FINANCIAL

Thursday, June 24, 1948

CHRONICLE

Pronounced Huge Success

Community singing was led by

quartet dressed for the part

Benjamin A. Walter, Bingham, Walter & Hurry; Ralph D. Lovendale, Blyth & Co.,
Inc.; F. H. Breen, F. H. Breen & Co.

Bel-Air Policeman Art Smith censors costume of entertainer

Janese

Cameron,

while F. Stuart Roussel, First

California Company, Entertainment Chairman, looks on

Hoggy Evans, First California Co. and Sam Green, Pledger & Co.

Rufus Lee Carter, Carter & Whitney; Gerald M. Goodman, Lord, Abbett & Co.;
F. Stuart Roussel, First California Co.; Carey S. Hill, Hill, Richards & Co., assist
entertainer Betty Gordon with some barber shop harmony

"Hartley Smith, Dean Witter & Co., pitched the winning
baseball team "Casey's Crocks" to a thrilling 8 to 7

victory.

Close observers of the above picture will
:understand why

Joseph L. Ryons, Pacific Company of California•
George Schindhelm, California Bank
'