Full text of Commercial and Financial Chronicle : June 27, 1946, Vol. 163, No. 4502, Section 1

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JUN

ESTABLISHED 1839

Final Edition

in

S

i

2#t

2 Sections-Section

1

Reg. U. S. Pat. Office

New York, N. Y.,

Number 4502

.Volume 163

Britain

What Should the Banker's Attitude Should We Make
The

Affairs,

By L. O. HOOPER*

By PAUL EINZIG

delay in ratifi¬
Anglo-American Loan

of

portations. Sees British trade bal¬
ance position improved in interval,
and valuable time gained in restor¬
ing sterling to convertibility.
LONDON, ENG. — It is now
confidently expected here that the
loan
wil be ratified

I

American

riot

am

banker.

a

I

not

do

pretend more than
a sound credit.

agreement was
ratified by the
British Parlia¬
ment in

a

few

days in
De¬
cember,
last,
the delay gave
rise

M y

academic
I have had

wHhin

reaUy

„
-

debt.

reach, official

L.

O.

French

Ohio Securities Section on page

not

good judge of credit, or a com¬
petent practitioner in bonds. '

after

year,

main task is to

your

(Continued

Index

on page

nor

which, because it is aggravated by

boom

Maine

which

of laws and customs within

we

live.

on

page

become

or

of the broad

granting

Springs,

*An

It will probably be news
to the reader to learn that on Feb.
14th
the
Italian .Government
the

asked

to

CO.

HIRSCH, LILIENTHAL &
Members New York Stock

25 Broad St., New
2-0G00

York 4, N. Y.

Geneva

London

(Representative)

Troy

Syracuse

Washington, D. C.
Scranton
Wilkes-Barre

I am

(Continued

Springfield

Woonsocket

New Haven

CORPORATE
FINANCE

INC.OftrOKATf D

634 SO. SPRING ST

WALL STREET

NEW YORK 5

*Air

~

State and

MEMBERS NEW YORK STOCK

14 WALL ST.. NEW

EXCHANGE

YORK 5. N. Y.

INCORPORATED

-.r:




Security Dealers Ass'n.

New York 5

45 Nassau Street
Tel.

TELEPHONE-RECTOR 2-6300
.#•

N. Y.

REctor 2-3600

Teletype N. Y. 1-576

Philadelphia Telephone:

Enterprise 6015

and Dealers

Bond Department

Hardy&Co.

THE CHASE

Stock Exchange
Members New York Curb Exchange

30 Broad St.

New York 4

Tel.

NATIONAL BANK

Tele. NY 1-733

Dlgby 4-7800

OF

THE CITY OF

NEW YORK

New England

^Universal Winding Co. Com.

-

Public Service Co.

Company
Analysis

*New Haven Clock & Watch Co.

upon

request

Preferred

Kobbe, Gearhart&Co.
Members

for Banks, Brokers

Products, Inc. Com. & "A"

MARKETS

Bonds

Service

LOS ANGELES 14

*Prospectus on request

Bull, holden & C°

3508)

Members New York

HUGH W. LONG and COMPANY
46

*Firth Carpet

SECONDARY

BROKERS

on page

Bradford B. Smith

Bond Brokerage

BE

from

Dallas

Pittsburgh

BOND

or

MAY

DEALERS

AUTHORIZED

New York S

Buffalo

Albany

Baltimore

Bank

FROM

OBTAINED

1927

PHILADELPHIA

BOSTON

PROSPECTUS

>

SECURITIES

64 Wall Street,

Teletype NY 1-810

Cleveland

Chicago

INVESTMENT

Exchange

and otftsr Exchanges

HAnover

R. H. Johnson & Go.
Established

Export-Import

|or a credit of 940 million dollars
to be advanced oyer a period of
time.
Supporting- this applica-

North East Ohio Personnel Conference
Cleveland, O., June 21, 1946.

INVESTORS - INC'

Prospectus on request

Successors

dis¬
appli¬

been virtually no

there has

cussion of the Italian loan

by Mr. Smith before the

address

[HI FUNDAMENTAL

Prospectus on request

;•

Currie

Municipal

Liberty Fabrics of N.Y.

Hirsch&Co.

Lauchlin

cation.

the function¬
framework.
3510)

and the Cleveland Chamber of Commerce,

Pratt's Fresh Frozen Foods
*

of

contrast,

In

Aerovox Corp.*

Nu-Enaniel

the

for

case

1946.

Me., June 22,

the

of

applications,

be¬

Bankers Associa¬

tion Convention, Poland

& Co.*

can

such credits.

monetary inflation, will have a serious aftermath.
Attacks morals of economic coercion and economic

(Continued
*An address by Mr. Hooper

L. E. Carpenter

com¬

mentators

aware

3532.
fore the

listener to

radio

confining myself for the moment to
ing of economic factors within that

3502)

of Regular Features ap¬

pears on page

wspapers

n e

*

3480.

of

reader

planning by government as a relapse "into bar¬
Most of you bankers, I surmise,
K (Continued on page 3516)
barian type of society.
are no more at home in the field
The strictly economic situation is dominated
Pictures taken at June 20 out¬ of common stocks than I am in the
By the words,
ing of the Boston Security Trad¬ area of credit. Your minds, and by two obvious economic facts.
quite rightly, are attuned to cre¬ "strictly economic situation," I mean to exclude
ers are on pages 3494, 3495, 34,9$
dits.
Day in and day out, yopr consideration of the political or social framework
and 3497.

in disguise.

loan.

casual

No

have

mal"

Hooper

a

circles admit that it was a blessing

the

about

that outlook is for a period of
heavy consumer and capital goods demands,
views its duration as in doubt, because political
forces as distinguished from economic forces are at
work.
Sees inevitable termination of an "abnor¬

than

am

Only slightly

written

abnormal activity, due to

I know

that I

substantial credit to the United Kingdom.
<?fewer
have

have failed to

more

equities

a

Industrial economist, though maintaining

resemble

to be

Millions of words have been written and spoken about the neces¬

sity of

Economist, United States Steel Corporation

closely

ratification

French loans. Asserts Italy's industrial
agricultural capacity is unimpaired. Concludes she can repay a
long-term amortized loan because (1) annual principal and interest
would take only 5% of anticipated exports, (2) her merchant
marine will soon be restored, (3) her other external indebtedness is
small, (4) she will be getting valuable assistance from the Mone¬
tary Fund. Urges our prompt action to forestall bi-lateral trade
agreements elsewhere and overthrow of her democratic processes.

and

By BRADFORD B. SMITH*

speculative
obligations,
which, in their
essence,

He has

support of British and

ous

been

fined to those

resentment,
but now that
appears

active

interest, even
in
bonds,
usually is (con¬

much

to

formerly assistant to President Roosevelt.

Economic Prospects
And Economic Morals

merit of loans.

the

when

author, President of the Council for American-Italian
was

Citing economic burden crushing Italy's new democracy, Dr. Currie
scores our Administration's apathy thereto in contrast to its vigor¬

an

knowledge of the theory of determining
<♦>n o
practical
experience in
or five months
longer than passing judg¬
ment
on
the
was
expected

within the next fortnight or so. It
has taken four

Loan to Italy?

a

tunity to study Italian needs at first hand.—Editor.

Security analyst asserts that whereas bankers are prejudiced
against ownership, they should have knowledge of equities, be¬
cause of
(1) their frequent value in determining the quality of
loans; (2) service to clients regarding their purchase by trusts,
institutions, and individuals; (3) portfolio-management where
bank is directly involved; and (4) general investment advice for
depositors. Warns of dangerous pitfalls in stock speculation, in¬
cluding mass psychology, over-prudence, lack of vision, impatience,
and over-emphasis on property value in lieu of earnings.
Predicts
permanently higher price earnings ratios, arising from secularly
declining interest rates.

Agreement has been a blessing in
disguise for Britain, inasmuch as it
kept to a minimum use of dollar
exchange, and reduced British im¬

Copy

recently returned from a visit to Italy where he had an oppor¬

Chief Analyst, W. E. Hutton & Co.

Dr. Einzig points out

a

By LAUCHLIN CURRIE

Be Toward Common Stocks?

Awaiting Loan
cation

Price 60 Cents

Thursday, June 27, 1946

HART SMITH & CO.
•

Reynolds Stock Exchange
& Co.

Members
120

New

York

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

REctor 2-8600

Bell Teletype:

NY 1-635

WILLIAM ST.,

Dealers Assn.

N. Y.

Bel I Teletype NY

New York

Members New York

Stock Exchange

and other Principal Exchanges

Members

New York Security
52

ira haupt&co.

HAnover 2-0980
1-395

Montreal

Toronto

111 Broadway

New York 6
REctor 2-3100

10 Post Office Sq.

Boston 9

Hancock 3780

Tele. NY 1-2708

Direct

Private Wire to Boston

THE COMMERCIAL & FINANCIAL CHRONICLE

3470

Thursday, June 27,194g
n

if

—Trading Marktts in:

Benguet Consol. Mines*
Old Frisco Pfd. & Com.
Pfd.

national self-interest inherently dominates the atomic proceedings, entailing wholly unre¬
Soviet's basic policy of nofrcooperation revealed by the-anti-U.
tirades issuing
from Moscow.
Belief in the practicability of Gromyko's proposal for outlawing the bomb requires
Motivation of

Com.

&

Miss. Valley Barge

KING

KING

&

Members

Dealers Ass'n
Securities Dealers, Inc.
40 Exchange PI., N.Y. 5 HA 2-2772
York

New

Security

of

Ass'n

NY 1-423

BELL TELETYPE

NEW YORK, June

COLLEGE,

HUNTER

1920

Established

Nat'l

"dewy-eyed" Utopianism. Basic differences between American and Russian-Polish
UN's plans to take over UNRRA's care of refugees are extensive and costly.

Prospectus

*With

cen-

of

macy;

o

Social

note

"nice
Wilfred

A.

May

try"

WOrth 2-4230

universal
cial

utopia—in

thereto

finds

the

sharp

Atomic

itself

actual

so¬

inexorable

it must

enon
a

definitive

with

force

realistically

joint

to

come

agreement,

or

Common

Preferred

&

Vanderhoef & Robinson
York Curb Exchange

Members New

31 Nassau Street, New York 5
Telephone COrtlandt
Bell

7-4070

NY 1-1548

System Teletype

"The solutions of

of

national

self-

interest, and the advisability of
camouflaging it, are resulting in a
plethora
of
public
double-talk
and unrealism.

is

Russia

one

tion
p

1

and

of

cerity

of

the

Mr.

this.

The

fore¬
insin¬

Gromyko's

is

(Continued

clearly
on page

pro¬

disclosed,
3514)

be

ed

token,

nt.

reach¬

Chronicle"

alone, b

promote

it

t

u

5

Vis,

traditional analyses.

is

measures."
S.

—

Szym-

novel, to be
and

sons

czak, Member

limited
to ouote
Alden

20 Pine Street, New York 5

Telephone: WHitehall 3-1223

Members
New
New

Teletype NY 1-1843
120

York Stock

BROADWAY, NEW YORK
REctor

to

answers

free

says,

of these
today."
The

many

"is signifying its

hammer

on

the

discussion.

2-7815

is

to

and

out

anvil

the

of

That, in

right

full

and

essence,

democracy—and, by the

same

Colonial Mills

CANADIAN INDUSTRIALS

Virginia Dare Stores

as

interests

New

Canadian

OTeeTteandCompciYYu
Members N.

37 Wall
Bell

Y.

Security Dealers Assn.

St., N. Y. 5

Hanover 2-4850

Teletypes—NY 1-1126 &

1127

Securities Dep't.

NEW YORK 6, N. Y.

Telephone BArclay 7-0100

Teletype NY 1-672

a

Bowser Inc., Common

For

Keynote Recordings, Inc.

praiseworthy

tates
and

attitude
necessi¬

progress

departures
the

from

"lessons

of

All

We

cannot

advance

low

that

and

of

one

the

emotional

shal¬

most

appeals for

a

communistic utopia was given the
title
"Looking Backward."
We
must not try to

Vandenberg

Consolidated Film Ind.

Consolidation Coal

Gude, Winmill & Co.
Members New York Stock Exchange

1 Wall St., New

1-055

proposed for de¬

control

in
OPA, by trial-andWays must be found for
looking ahead with precision, as

error.

the

astronomer who

his

telescope

Attractive for

first fo¬

the

on

trials, like his,
as

to

avoid

must

be

if
avoid social disaster.
error,

by

ures"

Macfadden

spot

high level
employment."

meas¬

production
it

does

in

and

C. E. de Wllers & Co.
Members New York Security

page

Dealers Assn.

120 Broadway, N. Y.

not

REctor 2-7630
on

Request

on

Groups.

sure, result

But

Common
Circular

monetary
of

Publications

made

hope tc

Pressure

should, to be

"a

so

we

Retail

5, N. Y.

Teletype NY 1-2361

3498)

Jefferson-Travis Corp.

Polaroid Corporation

Memorandum

WATER SERVICE

on

request

Western Union Leased Line

Stocks

Telegraph Co,
Atlantic Telegraph Co.
& Atlantic Teleg. Co.

International Ocean

Trading Market

Pacific

Common
BOUGHT

—

SOLD

—

QUOTED

&

Empire & Bay States

Teleg. Co.

Request

Simons, Unburn & Co.
Members New York Stock
Exchange

St., New York 4, N. Y.

HAnover 2-0600

York 5, N.Y.

Teletype NY

DIgby 4-7060

as Sena¬

Southern

25 Broad

Issues

All

Buckeye Incubator

suc¬

cessfully while looking back word;
perhaps it is not without signifi¬
cance

Minneapolis & St. Louis R. R.

SPRING BROOK

Bought—Sold—Quoted
on

Issues

tradition

by procedure which is necessarily
novel.

Common

*Prospectus

5

Assoc. Gas & Elec. Corp.

experience"

SCRANTON

United Stove Co.

Exchange

NEW YORK

HAnover 2-9470

Banks, Brokers & Dealers

Harrisburg Steel Corp.
Common

our

from

that

(Continued

■

Curb

5s/2000

Such

recognizes

"Appropriate

Exchange and Other Principal Exchanges

115 BROADWAY

York

Chicago, Mil., St. Paul & Pac.

Government

Goodbody&Co.
Members N. Y. Stock

New

WALL ST.

in
eternity where he knew the
olanet Pluto would be found. Oui

CANADIAN UTILITIES

England Co.

of

apart

whole."

cused

CANADIAN MINES

Michael Bros.
Northern

Members

64

Teletype NY 1-1140

study and
by dogmatism or

consideration

narrow

a

did

CANADIAN BANKS

Glenmore Distilling "B"

Frank C. Masferson & Co.

the broader interest of the nation

tor

We Maintain Active Markets in U. S. FUNDS
for

Stamped Preferreds

—

open-minded

proceed,

Boston & Maine RR.

too

perhaps, who,
Szymczak again, are
"the right solutions by

individual

to

than

know the final

problems

public, he

as

still

number

Mr.

discussion—not

terms

★

have at hand per¬

we

May 1,

discussion rather

answers

complex

desire

Exchange

York Curb Exchange

Tel.

general

such

Commodore Hotel, Inc.

An analy¬

publications,

in

seeking
patient,

Eco¬

assuming to

MCDonnell &fo

Recordgraph

but it is for¬

sure;

Potter

A.

any

best

Bell

Re¬

Board,

in

(Va.)

Detroit Int'l Bridge

sis is not right merely because it
tunate that

"stimulate

H. G. BRUNS & CO.

Common Stock

such freedom of discus¬

monetary

it,

Bough t—Sold—Quoted

Central States Elec.

to

as

ap¬

Szymczak's address on
"Our Monetary Problems" was of¬
fered, as he remarked in closing

Preferred

and

hesitated

not

without

Governor

Guaranty Co.

Struthers-Wells
Common

has

achieved

M.

4-8120
System Teletype NY 1-1919

de¬

our

economic system

sion and debate in its columns by
the presentation of novel as well

be

1946.

1952

preserve

our

The "Commercial and Financial

measures

cannot

Broadway WHitehall

Bell

discussion and debate."

nomic Club of New York,

Home Title

and

only by such full, free, and fair

monetary

before
Common

shall

we

mocracy

through

serve

Byrndun Corporation

Central Public Utilities

Members New York Stock
Exchange
Members New York Curb
Exchange

50

Federal

nouncements

Idward A. Pureed & Co.

crop

*-

em-

o y m e

propriate

furnishing

instance

most

index only in

monetary problems must be considered with
fundamental aim—economic stability at a high level of produc-

not

motivation

money

our

That goal can¬

Unfortunately, however, the ad¬
vancing discussion of the atomic
the

Jockey Club

an

question is revealing that here too

Electric Ferries

prematurely by bank credit. Finds
prices.

(the

perish!

Mississippi Shipping

tries

Commission

face-to-face

and

Monmouth Park

be confined within the existing money supply as actually earned
and saved. Sees a source of instability in financing of new indus¬

contrast

bomb),concerning which phenom¬

Common

production and distribution activities. Lays inflationary trend
much money" caused by expansion of bank deposits. At¬
tacks "forced saving" and recommends all loans and investments

a

Inc.

Chicago Corp.

full

at

creating

Public Util. 5y2

Adams Hat

to "too

unr-

successf ul

Baltimore Stock Exchange
120 Broadway, N. Y. 5

branch offices

textiles,

stabilizing prices or preventing inflation. Contends under infla¬
tionary conditions, removal of price ccntrols would not assure

nothing
an

ineffective

are

in

harmful

than

Central

Mr. Potter points out price and production controls

de¬

more

MitclielUCompaiuj

our

Soya Corp.

Economic

Council

Members

1-1557"

NY

La.-Birmingham, Ala.

Direct wires to

By ALDEN A. POTTER

f

and

ORG. "A"

HAnover 2-0700

"Appropriate Monetary

im-

the

PHARMACEUTICAL

What Are

Exchange

St., New York 4, N. Y

the

emerging
potencies

NAMM'S INC.

Members New York Stock

25 Broad

and

whereas

MILES SHOE

Steiner,Rouse&Co
New Orleans.

diplo-

power

KINGAN & CO.

Rogers Peet

major

a

during
past

turies

Trading Interest In—

Y. 1-1227

Bought—Sold—Quoted

UN doings,

in

more

;

off than it had

the

N.

26-r-Once

Investors

analyzed.

programs

objective is rapidly running afoul of obfuscating politics. In the present atomic energy pro¬
ceedings, this course has uniquely harmful implications. Whereas in the case of the Secur¬
ity Council, its abortive attempts to escape power politics have left the world no worse
been

Bell Teletype

Pacific American

alistic discussion.

Corp.-Scoop*

F.R.

Bird & Son

MAY

By A. WILFRED

Lithograph*

Havana

a

-

Tele. NY 1-2908




Troster, Currie & Summers
Member

74

New

York

Security

Dealers

J-G-White & Company

Association

INCORPORATED

Trinity Place, New York 6, N. Y.

Telephone HAnover
Private Wires to

2-2400

37 WALL STREET

Teletype 1-376-377-378

Buffalo—Cleveland—Detroit—Pittsburgh—St.

Louis

NEW YORK 5

ESTABLISHED 1890

Tel. HAnover 2-9300

Tele. NY 1-1815

bought

-

sold

Arnhold and S.

-

quoted

Bleichroeder

INC.

30 Broad St.
WHitehall

3-9200

New
Teletvoe

York 4
1-518

NY

LVolume 163

Number 4502

THE COMMERCIAL & FINANCIAL CHRONICLE

Stractnie and

Operation ol NAC

Should the

Security Dealer
Be a Vending Machine?

By HERBERT M. BRATTER

Continuing his study begun

in last week's issue, Mr. Bratter describss organization, procedure and personalities of National Ad¬

International Financial and Monetary Problems,
by Congress in the Bretton Woods enabling act. Points out

Dr.

was at

least

Sees financial views

strong.

as

affected by political situations.
II
How NAC Operates—Organization

National

The

Monetary

Advisory Council

has

Problems

International

on

a staff committee
the five«»

from

agencies which
commit-

That

Financial

of

up

and

personnel

committee, either occasionally or
regularly as the case may be, sit

tee, under the j in on the periodic meetings of
chairmanship NAC itself, explain the memo¬
of a represen¬ randa they have prepared, when
tative

the

of

Treasury

partment,

De¬
con

all

ducts

cessary

tical

and

fac¬

studies

tual

needed by

members
M. Bratter

Herbert

the

NAC

five

explanation is

needed,

contribute

the

in

reaching their
decisions.

to

trade practices and is

their

ers

and

in

documents

departments

theii

among

the members.

Apart

indicated elsewhere in this article,

business.

In

generations
A.

SEC Seeks More Control

M.

appears

and

ments,

ties

afforded only to investors in listed securities,
of corporations to select unregistered markets
for its securities. Says about 1,000 corporations would be affected,
of which 85% already have their statements certified by public
accountants.
Analyzes effect on unlisted trading, and furnishes
text of proposed amendment.
protection

now

Ganson Purcell,

urged that the

more

inserting pro¬

of

visions requir¬

$3

13

The effect of the

years.

adopted

acts

by

Con¬

leaving unprotected the investors

securities issued

who buy and sell

security
holders be

result of accident than

since 1933 has been to afford
various essential protections to in¬
vestors in certain companies while

than 300

more

a

quired to file

size,

registration
statements

As

by companies with securities listed
on organized securities exchanges.
The text of Chairman Purcell's
letter to

Congress,

market.

Securities and Ex¬

a

result of existing legisla¬

tion, it is possible for investors to
obtain

would extend to

(Continued

securi.ies

Congress

a

39 Broadway
New York 6, N.
HAnover 2-8970

by

their issuers

Y.

Teletype NY 1-1203

PLASTICS
MATERIALS CORP.
Prospectus

arrangements,

threat to over-the-

a

Request

on

Reilly & Co., inc.
York 5

Exchange PL, New

HAnover

2-4785

So.

39

La

Salle

68

St., Chicago 3
TWX CG 616

Devonshire

St., Boston 9

Richmond

Private
Boston

1-2733-4-5

NY

TWX

Randolph 8924

4321

Wires:

Cleveland

Los Angeles

Chicago
New York

TRADING MARKETS
Thiokol

Exchange Commission has filed with

Corp.

Axelson Mfg.

report which it entitles "A PROPOSAL TO

SAFEGUARD INVESTORS IN UNREGISTERED SECURI¬

Co.

Crampton Mfg. Co.

TIES."

Billings & Spencer

In effect this

Securities

report recommends

an

amendment to the

Exchange Act of 1934 which would extend to in¬
protection now afforded to
in listed securities by reason of Sections 12, 13, 14

Laclede-Chrlsty Products

vestors in unlisted securities the

investors

and 16 of the Act.

HtttioD

lo.m

&

Members New York Security Dealers Assn.

Section 12 of the Act deals with the

registration require¬

170

Broadway
Bell

WOrth 2-0300

System Teletype

NY 1-84

ments for securities.

Section 13
Section 14

requires the making of periodic reports.
proxy disclosures and Section 16

provides for

(Continued

Haytian Corporation

3521)

on page

on page

We

are

Punta

Alegre Sugar

Lea Fabrics

interested in offerings of

U. S. Sugar

with

High Grade

3504)

Public Utility
MARKETING FACILITIES
•

American Bantam Car

Fidelity Electric Co.

and Industrial

Class

A Common Stock

•

Spencer Trask & Co,

•

SECONDARY

with this

•

Teletype NY 1-5

Telephone HAnover 2-4300

DISTRIBUTIONS

Members New

York Stock

DUNNE & CO.
Members New York Security Dealers Assn.

25 Broad Street, New York

the

Susquehanna Mills

PREFERRED STOCKS

•

UNDERWRITINGS

protections now enjoyed b,y inves¬
tors in securities which are regis¬
tered

Common

Nationwide

investors in cer¬

unregistered

information

reliable

change

tain

Dye

Members New York Security Dealers Attn.

Reminiscent of 1941 "equalization" propaganda.

The Securities and
the

in¬

which accom¬

Commission recommend¬
ing an amendment to the Securilies Exchange Act of 1934 which

Broadway

Piece

Eastern Sugar Assoc.

panied the report, is as follows:
There is submitted herewith a
report of the

Pfd.

Estate

L J. GOLDWATER & CO.

as

required

now

public

and

Real

61
United

terest.

importance,

Cadillac

to be to make transactions, agree¬

mere
mechanistic
(Continued on page 3513)

by other companies of comparable

re¬

4-6551

Hotel Barbizon

on

gress

exceed

i 11 i o n s
having

m

.and

as

securities

whose

assets

of the

which—

investors

WHitehall

Schulte

barring fraud, deceit and manipulative practices con¬
adequate public protection. Industry should be briefed
for organization of effective opposition.

design—has developed over ihe

past

ing corporalions

of

protection

amended by

Dept.

STREET, NEW YORK

Telephone

stitutes

respect to the

with

standard

ble

be

1 9 3 4

purpose

Obsolete Securities

SEC rules

amendment is to elimina e a dou¬

Exchange Act
of

The

Commission.

Secur ities

counter

19

Commission, in a report to Congress on June

WALL

J. F.

Chairman of the Secu¬

who has since resigned as

activity*, which for
personal service
buyer-seller relations, the aim
based

Proposed SEC Bill in its report to Congress

and would end right

rities and Exchange

99

field of

SEC Proposal Would Deal Body
Blow to Over-the-Counter Industry

Act which would require companies with over
$3 million assets and over 300 security holders to file statements
similar to Exchange securities. Holds this would extend to invest¬

from!

come

40

Purcell, its retiring Chairman, urges amendment to Securi¬

Exchange

ors

a

bargaining

Over Unlisted Securities
Ganson

undoubtedly taking
personal elements out of the

was

and intimate

Sakolski

It is

customers.

all human and

from the principal staff
(Continued on page 3486)

As

obsoletes to us,

they

and

merchandising.
The handcuffing
industry through rules, regulations,
formulas and philosophies makes the straitjacket a flexible piece of wearing apparel 1V1
comparison with the restrictions imposed
on
security dealers in their relations with

research assign¬

circulated

are

Boston

out

of the

Its memoranda and

agencies.

with

sitting
from

on your hands
those
obsolete
way?
Sell
no matter where

corns

Book

traders, is fast converting the whole
field of security transactions into
vending

NAC, the staff com¬
through working commit¬
tees utilizes the resources of the
member

from
shocks

all

got

you

I

mittee

respective

Have

revolutionary.

policy of the SEC and its satelite, the NASD, in
benign but misdirected efforts to protect investors from
the supposed
wily actions of security deal¬

from

ments

BOSTON

on

own or

machine

In carrying out

BLISTERS

TWO

The

often

and

discussion

SEC's proposed prohibition

special ac¬
publicly, points out this proposal, along
with other trading restrictions
already placed or to be placed on
securities dealers, is tending to make these dealers mere
vending
machines.
Holds security transactions constitute a
highly per¬
sonal business, with close
relationships between dealer and cus¬
tomers, and that new proposed SEC rule destroys established

other ways.

ne¬

statis¬

on

of the members of the staff

1 many

it.

compose

made

AND COMPANY

FROM

securities offered

counts

Council's affairs, though in

Department's influence

Sakolski, in commenting

underwriters and dealers of withholding for their

Secretary of Treasury, has been most influential in
case of British and French loans State

Mt. Vinson, as

llCHTOIfin

B. S.

By A. M. SAKOLSKI

visory Council on
set up

3471

25 Broad St., New York 4, N.

Y.

WHitehall 3-0272—Teletype NY 1-956

Exchange

Private

Wire

to

Boston

•

Blocks of

TITLE COMPANY

CERTIFICATES
Bond & Mtge.

Guar. Co.

"Parks Aircraft

UNLISTED SECURITIES
Inquiries invited from dealers,
estates, corporations, banks, in¬
stitutions and individual holders

Sales &

Victor-Monaghan Company

*

Miles

N. Y. Title & Mtge.

Co.

Common Stock

Public National Bank &

Members

Members New

5 Broad St.,

York Stock

N.Y. 5

Exchange

WHitehall 4-6330

Bell Teletype NY

N.

Y.

Security

Broadway

NEW YORK 4

ewburger, Loeb & Co.
1-2033




Bought

STRAUSS BROS.
32

Prudence Co.

Incorporated

National Radiator Co.

Lawyers Mortgage Co.

Lawyers Title & Guar. Co.

Service, Inc.

Shoes

DIgby 4-8640
Teletype NY 1-832. 834

Dealers

—

Trust Co.

Quoted
*

Board of Trade Bldg.

Hon Rose STrsster

CHICAGO 4

ESTABLISHED

Harrison 2075

Teletype CO 129

York—Chicago—St. Louis
City—Los Angeles

Kansas

Sold

Assn.

Direct Wire Service
New

—

1914

Prospectus

Trinity Place, New York 6, N. Y.

Telephone:
BOwling Green 9-7400

Teletypes:
NY 1-375 & NY 1-2751

request

C. E. Unterberg&Co.
Members N.

74

upon

61

Y. Security Dealers Ass'n

Broadway, New York 6, N.Y.

Telephone

BOwling

Green

Teletype NY 1-1666

9-356S

THE COMMERCIAL & FINANCIAL CHRONICLE

3472

Thursday, June

27, 1946

Leonard Howard
Heads

Eftdice July 1,1946

Leonard

F.

financial

Announcing the formation

of

Howard,

news

"Journal of

Lewisohn

formerly

editor

of

Commerce,"
&

Co.,

61

the

has joined

Broadway

New

York'

City,

Kalb, Voorhis & Co.

member
the
New

of

York

stock

American Bantam Car

Exchange,

Amer. Window Glass*

manager
of
the
Invest¬

Com.

&

Members

ment

Pfd.

New York Stock

Assoc. Dev. & Research

it
announced.
After serv¬

Exchange (.Associate)

Automatic Instrument

Research

Department,
is

New York Curb

Barcalo Mfg.

Exchange

ing four
in

Co.

the

M

Cinecolor

r.

released

from

Chicago R. I. & Pac.
Old

Leonard

F.

District Theatresf

is the

Douglas Shoe*

of

Gt Amer. Industries*

^

serve> and

x

January

of this year. Prior to
1940 he was
associated with Sutro
Bros. & Co
in the statistical

department.

business

The

Hartford-Empire Co.*
Jessop Steel

COMMERCIAL

Reg. U. 8. Patent Offloo

William B. Dana

Company

Publishers

Mastic Asphalt

25 Park

Michaels Bros.t

15

BROAD

STREET,

NEW YORK

5,

Place, New York 8

HAnover 2-9580

•

D.

Selbert,

Editor and Publisher

Cable Address Kalavor

Teletype NY 1-2245

•

Missouri Pac.

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

Pfds.

Thursday, June 27,

Mohawk Rubber*

Direct wires to

Moxie

correspondent ftrms in:

Published

Bridgeport, Connecticut

every
(general

Hartford, Connecticut

N.Y. New Hav. & Hart.

Los Angeles, California

Purolator Prod*

1946

week

a

Thursday

news and

advertising issue)

Monday

(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
clearings, state and city news, eto.)

Chicago, Illinois

N. 0. Texas & Mexico

twice

and every

Cleveland, Ohio

Pfd.

i

REctor 2-9570 to 9570

N. Y.

Herbert

Michigan Chemical

Old

and

FINANCIAL CHRONICLE

Lanova*

Old

re¬

turned to the editorial
staff of the
"Joural of Commerce" in

Keystone

our

as

major,
Corps Re-

Air

Pfds.

Securities Research

active

duty

Howard

years

Army,

Howard

was

Diebold Inc.

as

Other

Richardson Co.

A Booklet

describing

our

Offices:
135 S. La Salle St,
Chicago 3, 111.
(Telephone: state 0613)j
Drapers' Gardens, London, E. G., Eng¬
land, c/o Edwards & Smith1

services and organi¬

zation is available to Dealer Firms

on

Taylor-Wharton*

request.

Copyright 1946 by William B.

Dana

Company

Tenn. Products

Reentered
25,
York, N.
ruary

Thomas Steelt

R. Kewman

Upson Corp.*
U. S. Air Conditioning
Vacuum Concrete

Lt. Col. A. 0. Harris

Opens

With Q'Brian Mitchell

Own Investment Firm
(Special

NEW

to

The

Financial

ORLEANS,

Chronicle)

LA.

—

BUFFALO,

Ran¬

dolph Newman has formed Ran¬
dolph Newman & Co. with offices

Alabama Mills*

in the Carondelet

Aspinook Corp.*
Textron Wrnts. & Pfd.

American Gas & Pow.

gage

the

Building to

en¬

in the securties business. In

past

he was
Inc., in

with

Levy

&
corporate

Rooney,
the
bond department.
Prior thereto
he was a partner in Marks, Laser
& Co.

Richard Nelson Asst. VP

N.

Y.

—

Lt.

Col.

Arthur O. Harris has become asso¬
ciated with O'Brien, Mitchell &

Co., Liberty Bank Building it is
anounced.
Col
Harris
prior to
World

War

II

in
sales-counseling work. During the
war
he was
in
charge, succes¬
sively, of the Elmira Rochester
and Buffalo

Rochester

was

engaged

Of

Equitable Sees.

of

He*
will make his
headquarters at the
firm's New York
office, 2 Wall

Street,

with

which

he

has

been

connected for many years.

per

South

year;

Spain,

Mexico,

and
and

Cuba,'

$29.50
per
year;
Great
Britain,
Continental Europe (except Spain), Asia,
Australia

and

Africa,

$31.00

per

year.

Other Publications

Bank and Quotation Record—Mth.$25 yi.

Monthly Earnings Record—Mth.. .$25 yi.
NOTE—On account of the fluctuations
in the rate of
exchange, remittances fog

foreign subscriptions and advertisement!
bo

muRt

tuMife

in

Vtow

York

fund*

regional offices of the

Ordnance

District.

New England P. S. Com.

U. S.

Oxford Paper Com. & Pfd.

Bowser Inc. Com. & *Pfd.
Central Pub. Utility 5V^s,'52

^Princess Vogue Shops *Elect.
Corp. of Amer.

Puget S'nd P. & L. Com.

*Crowell-Collier Pub.

Buda Co.

*Dumont Electric Corp.yDistrict Theatres
Corp.

Envelope

Canada, $27.50
America,

Central

company.

Art Metals Construction

Southeastern Corp.

1879.

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

Equitable Securities Corporation
announces that Richard D. Nelson
has been appointed
Assistant Vice
President of the

Cent. States Elec., Com.

Iowa Pub. Ser. Com.

3,

second-class matter Feb¬

as

1942, at the post office at New
Y.t under the Act of March

Republic Natural Gas Co.
Sunray Oil
Conv. Pfd.

*The FR Corporation

Bought - Sold - Quoted
*Prospectus available

•Prospectus Available

on

request.

Spec. Part.

Southwest Natural Gas
Standard Gas Elec.
tProspectus Upon Request
•Bulletin

or

Goodbody & Co.

FIRST COLONY CORPORATION
Members New

52

York

Security Dealers

Wall Street

Members N. Y. Stock
Exchange and Other Principal Exchanges
115
Broadway, New York
105 West Adams St., Chicago

Association

New York 5, N. Y.

Tel. HAnover 2-8080

Telephone BArclay 7-0100

Teletype NY 1-672

Teletype NY 1-2425

Circular upon request

ACTIVE MARKETS

Ward & Co.
EST.

1926

Members N.Y. Security Dealer; Assn.

120

BROADWAY, N. Y. 5

♦Upson Company
Central Paper

♦Tennessee Prod.

Doyle Mfg. Com. & Pfd.

♦Shatterproof Glass

K

♦Wellman Engineering

♦Temple Coal Pfd.

on

Direct Wires

to

Products (New)

request

Aeronca Aircraft Com. & Pfd.
»

Chicago and Phila.




^Capital Records
Haile Mines

*Prospectus

on

request

United Piece Dye

N. Y. 1-1286-1287-1288

ENTERPRISE PHONES
Hartf'deiJl
Buff. 8024
Boa.

Great American Industries

ingan Co. Common
Columbia Aircraft

Textiles, Inc.

*Descriptive Circulars

REctor 2-8700

Soya Corp.

Seligman, Lubetkin & Co.

2100

SIEGEL & CO.

Incorporated
Members New York
Security Dealers Association

41

Broad Street, New York 4

HAnover 2-2100

39

Broadway, N.Y. 6

DIgby 4-2370

Teletype NY 1-1948

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

Members N.

Y.

1908

Security Dealers Assn.

REctor 2-4500—120 Broadway
Bell System

Teletype N. Y.

1-714

V(

3473

COMMERCIAL & FINANCIAL CHRONICLE

THE

Number 4502

Volume 163

The Future of the Bull Maiket

Robinson V.-P. of

Labor Union Stains

Mass. Inv. 2nd Fund

By L. SCUDDER MOTT*

And

Member, Investment Committee
National Securities and Research Corporation

Capitalism's Future

By E. C. GRIFFITH*

outlining the phases of a bull market as (1) rebound
over-depressed levels; (2) adjustment to improving condi¬

Mr. Mott, in
from

Professor Griffith maintains in certain
of their

still in second phase, and further rise is indicated.

present market is
on

largely in capital and durable goods fields, which have not yet
attained highly prosperous conditions.
Sees possibility of seasonal
rise in summer months.
(in the Feb. 21, 1945 issue of "Investment

months ago

Sixteen

Timing") we took occasion—as the Dow-Jones Industrial and Rail

had

Averages

to

risen

high

measured by the Dow-Jones
Industrial
Average)
dates from

cur¬

rent bull mar¬
ket

—

cuss

While there

dismarket

to

when

viewpoint.
11

y

(June 13) the
Dow- Jones

Taxes Important

26.

these averages
were in new high ground, and, in
fact, at the highest level for the
Rail
Average
since September,
1931, and for the Industrial Aver¬
age
since October, 1930.
The
question of "where do we go from
here?" is again naturally raised.
both

the

peace,

tle duobt that wartime taxes
tax

general back¬

and

as a

Mr.

Robinson, who graduated
University in 1920

from

Harvard

and

subsequently
degree from

received
his
the Harvard
Graduate School of Business, en¬

MBA

tered

;the

field in
sociated

with

which
d

u s

t

to
has

y

The

been "affected
with

been

director of Massachusetts

a

Investors Second Fund. He is also
a

director

(and)

and of the

Cambridge Trust Co.

.

(ceased)
be
j uris

.

.

Lord

said

a

200

In
so¬

it

resulted
E.

C.

the

is of

that practically every

contradiction,

in

CANADIAN

confu¬

PACIFIC

sion, and uncertainty. The cause
of this lies in the lack of generally

Griffith

crucial impor¬
tance

applying

police power in the interest of
the general welfare. Weighing the
merits of the issues involved has

Hale

ago.

denying the pro¬
of
the Federal

while

Constitution

dynamic

years

devices

tective

Chief

some

measure

some

only,"

accepted criteria by which to de¬
termine the extent to which an

gen-

RAILWAY

affected
public interest to warrant
application of the public util¬

economic pursuit must be
*This article
sonal
and

the

views
in

no

represents the per¬
Griffith

of Professor

the

way

with

opinions

the

of

a

ity concept and thereby

faculty of the University of
as such opinion was not

Stock

legally to

subject it to social control within

Georgia,

(Continued

sought.

on page

and

3506)

Bonds

the

and

strikes

of

wave

l

(Continued

COAST-TO

unprecedented

included the

have

Direct Private Wire Service

end

wage

on page

in-

3493)

New York

*Prospectus

on

Chicago

-

-

St. Louis

COAST

-

Kansas City

-

Los Angeles

-

HART SMITH & CO.

Members New York
32

Bell

FRANKLIN SIMON

Harrison 2075
Teletype CG 129

DIgby 4-8640
Teletype NY 1-832-834

GRAYSON ROBINSON
ST. LOUIS

pfd.

NEW HAVEN CLOCK

Incorporated

Pledger & Company, Inc.

Street, New York 5, N. Y.

pfd.

LOS ANGELES

PIPER AIRCRAFT

Teletype NY 1-490
Chicago

pfd.

Francisco

San

-

Pfd.

&

Com.

Baum, Bernhelmer Co.
KANSAS CITY

White & Company

E. H. Rollins & Sons

-

Toronto

Montreal

Board of Trade Bldg.
CHICAGO 4

Broadway

NEW YORK 4

Request

Tel. WHitehall 4-4860

1-395

Teletype NY

New York

Security Dealers Ass'n

HAnover 2-0980

N. Y. 5

52 WILLIAM ST.,

STRAUSS BROS.

Scranton Electric Co.

Philadelphia

States

nomic endeavors is that we are in

interest

^Pacific Telecoin Co. Units

-

United

the

of

Smelting, Refinipg and Mining Co.

regarding the application of the
public utility concept to new eco¬

National Gas & Electric

Boston

In¬

trustee

decision

the

in

difficulty

public

a

International Furniture Co.

40 Wall

a

economic pursuit.

the inr

retard
upward progress of stock
prices. Developments on the un¬
favorable side since the war's

Massachusetts

of that Fund in 1937 and has also

single element tending to

*Reprinted
from
"Investment
Timing," June 24, 1946, published
by National Securities & Research
Corporation, New York City.

company

vestors Trust. He became

expectations were the greatest

ground for discussion, let us re¬
call that the present bull market

investment

1932 when he became as¬

orbit of public

ciety,

of

ences

the

of bringing within the
control some new

problem

reconversion and
the repeal of the excess profits
tax (as well as the lightening of
other taxes), while potential in¬
flationary
factors also assumed
greater significance. The tax de¬
velopments were of particular im¬
portance, since, with the advan¬
tage of retrospect, there seems lit¬

Since the com¬

with

confronted

is

eration

degree

as

of the broad market

$>-

a

function of the

previous discussion
prospects, the
war
has ended and stock prices
have had the stimulating influ¬

L. Scudder Mott

establish

Factor

our

control

social

the

of

has

largely

Justice

Since

panion Industrial Average had al¬
ready exceeded its similar level,
and on May 29 had made a further

To

issue

been

privati

margin.

high,

the

to

i t s

exceeded

new

year,

to the 186.02 level on Feb.

previous (Feb.
5) high by a
small

this

2

from 206.97 on
carrying down

other

the

year;

Feb.

Average

Rail

trend

intermediate

the

logically
be
considered
downward, there were only two
reactions of real importance. One
was from 145.82 on July 14, 1943,
to 129.57 on November 30 of that

the broad

Re c e n

were

could

prospects
from

92.92 level.
several periods

1942 at the

April 28,

of

problem

Jr.

tee.

of industry has long been
paramount importance to organized society. The importance of
The

(as

ground

the

for

<£-

new

labor unions, because

cases

occupational monopoly, have achieved essentially status

public interest, and, like public utilities,
could be subjected to government control and regulation. Points
out placing labor organizations in this status would impair con¬
stitutional rights and challenge validity of democracy. Holds solv¬
ing dilemma, unless unions recognize their social responsibility,
could be accomplished only by state ownership and operation of
industries where unions are given public utility status, and this
may mean eclipse of Capitalism.

favorable effect of reduced taxation and to higher yields
stocks than on bonds, and contends future of bull market lies

announce

Robin¬
Vice-President of the
corporation and Chairman of its
investment management commit¬
son,

of pursuits affected with a

Points to

Fund

Second

the election of Dwight P.

Associate Professor of Economics, University of Georgia

and (3) overdiscounting of favorable prospects, maintains

tions;

Directors of Massachusetts In¬
vestors

SAMSON UNITED

Baker Raulang

Jefferson

Lake

Com.

Sulphur

Quarterly dividend payable July 15,
Dividends 1946 to date

Pfd.

&

Carbon Monoxide

Preferred

&

Common

Standard Fruit
Com.

&

Established

$.50

Members New Orleans

PETER BARKEN

New Orleans 12, La.
Carondelet Bldg.

N. Y.

New York 4,
11 Broad St.

York 4, N. Y.
Tele. NY 1-2500

Stock Exchange

1914

74

Trinity Place, New York 6,

N. Y.

Preferred

Dravo

Suburban

Solar Aircraft Company

Gas

Co.

Bought

—

York Curb Exchange

39 Broadway

Digby 4-3122

New York 6
Teletype NY 1-1610




Reynolds & Co.

*

Bell

N. Y.
REctor 2-8600
1-635

Sugar Corp.

Corp.*

Transmission Co.*

Sold

—

Quoted

Common

MEMBERS N.
63 Wall

Upon

Request

CO.

Quotations

Prospectus on request

Y. SECURITY DEALERS

Street, New York 5, N. Y.

ASSOCIATION

Bell Teletype NY 1-897

York Stock Exchange
Exch. Assoc. Member
York Coffee & Sugar Exchange <

Members

120

New

York Curb

New

New

Established 1888

Stock Exchange

Teletype NY

Chicago
York

Punta Alegre

Corp.*

FREDERIC H. HATCH A CD., IHC.

Broadway, New York 5,
Telephone:

New

FARR &

Conv. Preferred

Members New York
120

Cleveland

$6 Pfd.

*Prospectus on request

Chicago Stock Exchange

4321

Private Wires:

Company*

Propane Gas

Tennessee Gas &

Conv. Preferred

$2.40

TWX CO 616
Boston 9

St.,

Richmond

Petroleum Heat & Power

^Raytheon Manufacturing Co.

KANE, Asst. Mgr.

&

Electric

Chicago 3

Salle St.,

La

Devonshire

NY 1-375 & NY 1-2751

Firth Carpet

Inc.

Detroit Harvester Co. Com

90c

Members New

68

Los Angeles

Securities
*

So.

39

Randolph 8924

Boston

Conv.
*

Request

Exchange PI., New York S
2-4785
TWX NY 1-2733-4-5

40

Bell Tel.—NY-1-493

Curb and Unlisted

on

J. F. Reilly & Co., inc.

Teletypes:

Telephone:
BOwling Green 9-7400

Consolidated

Joseph McManus & Co.

Prospectus

HAnover

Bo. 9-4432

Acme Aluminum Alloys,

MICHAEL HEANEY, Mgr.

Bought—Sold—Quoted

35 (ex-div.)

Specialists in Soft Drink Stocks

T. I. FEIBLEMAN & CO.

WALTER

—

Hon. Rose ©Trqster

Preferred

Tel. WHitehall 4-6430

—

1946

$1.75

& S/S

Pfd.

American Beverage

32 Broadway, New

—

Analysis on request

Mills Corp.

Cotton

Lane

American Insulator

Approximate selling price

Jonas & Naumburg

Eliminator

pfd.

PANAMA COCA-COLA

Galveston Houston

WALL

ST.,

NEW

TEL. HANOVER

YORK

2-9612

THE COMMERCIAL & FINANCIAL CHRONICLE

3474

Pureed Quits

By hon. joseph p. kennedy*
Former Ambassador to Great Britain

Former government official and diplomat, declaring that present crisis constitutes
epochal testing period
for nations and individuals, criticizes citizens' indifference to threats to our form of
government and
way of life.
Vigorously warns of unadaptability of American ideals to Russian methods.

nomination

nomination

Hanrahan's

had

the Senate on May 31, but
immediately withdrawn, said

ence

was

the Associated Press at that time

when it developed that Mr. Pur¬
cell had not then resigned, but
had
a

indicated

merely

desire

to

step out at

previously
some fu¬

ture date.
Associated

Press

ington accounts June 24
the following:
Accepting

Wash¬

we

take

the

resignation to¬
day, the President praised Mr.
Purcell's long association with the
Commission
achieved
mum

of

and

for

said

investors

he

"a

protection" and

a

had

maxi¬

"min-

told

the

fective

President

that the "pressure of my personal
affairs
has
become
such, after

16 years of government
service, that I am obliged to re¬
turn to private life."
At SEC headquarters in Phila¬
delphia, Mr. Purcell said at a

nearly

news

From

Purcell

conference

Washington
York

partner

firm

law

he

will

of

become

the

New

of

Root, Ballantine, Harlan, Bushby & Palmer.
Mr.
Purcell
joined the SEC
legal staff in 1934, became direc¬
tor of the trading and exchange
division in 1937, a member of the
Commission
man

in

1941

in

January,

Chair-

and

Asserting that

of trouble has been our politicians' desire for quick popularity, Mr. Kennedy
public challenge of the political claim that central government is normal instrument

major

a

with the financial system.

Mr.

gone to

cause

Crises such
which

the

as

h

are

great

iliation

um

and

to

rise

or

to

people

of

way

How

life

easily

liberties

proportionate toll today
would be
the equivalent of
more
than

was

65
million people. Yet in the
spring¬

take

we

time, when the Mayflower
England, not one

have

we

a

Pilgrims returned to what
would

knew

what

these

things

have

meant.

They came here to escape
the tyrannies of Europe, to form
new

a

Winston

government

power

for

crisis—Dun¬

for

not

and glory of the state but

preservation of personal
religious liberty and of eco¬ of

nomic freedom. No

one

her Allies had

Common & Preferred

feat and Great

in

ourselves to

1914

fulfillment

BOwling Green 9-7400

ny 1-375

—

its

so

bear

and

thousand years, men

'This

say,

Commonwealth

was

ny 1-2751

individual
is

Richmond

Cedar

Works

Tennessee Products
—

small

QUOTED

Victoria Gypsum

Washington Properties

New York Hanseatic Corporation

Commodore
M.

BROADWAY, NEW YORK 5, N. Y.

H.

Hotel

Rhodes

Nazareth Cement

Telephone: BArclay 7-5660

Teletype: NY 1-583

American

have

Felt

Co.

11

Circular

CC

Broadway, N. Y. 4

Tel.

upon

request

27 State

DIgby 4-1388

St., Boston 9

confident

and

those
for

for

more

the

The

de¬

for

Whitehall 3-0550

John F. Dulles

than

other,

any

gave

men

Equity Oil

men

economic

LOOKING FOR INCOME>

opportunity.

We

NEW BEDFORD RAYON "CLASS A
Paid $1.75

67 Wall

11

Street, New York 5

Telephone

HAnover

Teletype NY

2-9335

1-2630

the

in

fore¬

historical

an

irresistible.

was

what

and

Today

was.

the

ini¬

confidence

has

Throughout

are

the

tarnished.

is

have lost

their

world

the

beginning

to question
all, a society of
adapted to modern

after

freedom

is

needs.

Balatoc

Mining

The Soviet Union is conducting
a

great experiment in
what is
called
"democratic dictatorship"

"dictatorship

tariat."

Benguet Cons. Mines

A

small

committing
the wel¬
fare of the mass, assert the right
to dictate a pattern of mass life
themselves

and

and

Furnished

Request

1922

Members N. Y. Security Dealers Ass'n

42 Broadway, New York
DIgby 4-6320

promote

suppress

(Continued

JOHN J. O'KANE JR. & CO.
Established

to

to

individual

free¬

doms which might interfere with
that. That experiment has now

information

on

of
the prole¬
self-perpetuating

group of men publicly

Mindanao Mother Lode

JAMES M. TOOLAN & CO.

that

whether,

request

on

sought

for ourselves.

being

proponents

tiative

and

Quotations
*Circular

of

is

waned.

Utah Southern Oil

Beach

won

who

freedoms

prestige of freedom
Its

Big Wedge Gold

Tele, ny 1-2178

Harrisburg-Pittsburgh-Syracuse-Miami

the

Tarnishing of Freedom

That

a

1926

*Kinney Coastal Oil

lands

the satisfaction

thrill

spiritual freedom and intellectual

Expresso Aereo

Claybaugh & Co.

the

free¬

We

Atok

st., new york 5, n. y.

had

and

of

support,
support, to

material

movement

Philippine Mining Stocks

Members Philadelphia Stock
Exchange

Teletype NY 1-1525

*An

on

address

page

3490)

written

by Mr.
Dulles, but because of his illness
delivered by Dr. Nelson P. Mead,
at

Commencement

College

of

City

Exercises

of

New

June 19. 1946.

Annually 1939-1945

DEAWARE RAYON "CLASS A"
Paid $1.50

Annually 1939-1945

FR

Approximate Market 22l/2-23l/2
CIRCULAR ON REQUEST

Bought

111

Security Dealers Ass'n
BROADWAY, NEW YORK 6, N. Y.

BArclay 7-0570




Corporation

Super-Cold Corp.

F. H. HOLLER &
CO., Inc.
Members N. Y.

—

Sold

—

Quoted

Member of National Association
of Securities Dealers, Inc.

Wall Street,

HAnover 2-1140

New York 5

Teletype NY 1-2096

OFFERINGS WANTED

V.T.C.

Dictograph Products

A. P. W. Receipts

Great Western Exploration

*Can. Western Lumber Co., Ltd.
*Circular

on

request

Brokers
In

&

Dealers

Investment

62 William St.

Securities

New York 5, N. Y.

Telephone

Teletype

WHitehall 4-2422

NY

Branch
113

Hudson

St.,

1-2613

Office

Jersey

City,

for

N.

J.

deposited A.

W.

Products Co., 1st

6s,

MAHER& HULSEBOSCH

R. G. ILSLEY & CO.
64

ny 1-1026

Steep Rock Iron Mines, Ltd.

Linn Coach & Tr uck

1948.

Chase Bank

Receipts.

Schirmer, Atherton & Co.
Members New

York Stock Exchange

SO Congress

St., Boston

Liberty 8852

of

York,

Approximate Market 25l/2-26l/2

Cosmo Records

a

moral

gave

themselves
we

admired
peoples

front of what seemed

or

wall

than

of seeing
despotism
decline
throughout the world and we had

have played a
leading part
in the strug¬
dom.

more

political

Americans

gle

been

other

in

We had

We

Bought—Sold—Quoted

52

Century's self-

the

We

which

would

prevail.

defensive,

on

society
by

often

and

that

cause

righteous

was

that

world.

supremely

Tele. BS 169

Established

,

long they have had the

imitated

Tel. Capitol 8950

Tele. NY 1-86

GEAR GRINDING MACHINE CO.

Blair F.

last

never

but for

saw

the

offensive,

society which,

J

forsaken

not

race,

have
on

ourselves

H. D. KNOX & GO.

'

>

minority of the human

veloped

TO INVESTMENT DEALERS

3488)

regain its lost prestige,

ninative.

their

American Vitrified Products

120

we

to

The advocates of human freedom have

been

SOLD

Warning that democracy is
society of freedom

our

by demonstrating

They

—

freedoms.

declares way for

Kennedy at

by Junior College, June 17, 1946.

Envelope Co.

page

Attacks Russian experiment as assailing right of small
self-perpetuating group to dictate pattern of mass life and suppress

restraint.

Commencement Exercises of Col¬

BOUGHT

on

undoing.

last

will still
their finest hour'."

*An address by Mr.

United States

Standard-bearers

(Continued

Mr. "Dulles asserts Soviet's worldwide
program is based on belief
universal extension of system is
only way to prevent its domestic

not

if the British Em¬

pire

Teletypes:

ideals.

your

guaranteed

By john foster dulles*

the

did

duties and

our

for

a

the

of

State Control Versus Self-Control

ever

power

Churchill

ourselves that,

Trinity Place, New York 6, N. Y.

Telephone:

against

military
But

Kennedy

quail. In that dark hour he said to
his people: "Let us therefore brace

Hoit.RqseSI1iqster
ESTABLISHED

P.

alone

stood

known.

74

Joseph

de¬

mightiest

Quoted

—

life

a

of

American Bantam Car

Britain

been

of

comparative
comfort and
security.
Do not despair then at
the slow¬
ness of human
progress if you do
not see the immediate

the

the

and

France,

fallen

set sail

for

fathers

b y

land—a 11

security

enjoyed in this country! Our fore¬

was

delivered

them

earned it.

Belgium, Hol¬

Sold

social

or
freedom. Thev
During the first winter
in Plymouth, one half
of the
entire
died from sickness.
but colony
A

their

threatened.

inspiring

messages

of Our Forefathers

for granted the

of the

one

most

Example

Here then, in our own day, we
have seen a people, loving peace,

when

heights of tri¬
I feel
umph.
that

The

wholly unprepared for war,
rising courageously to the occasion

disgrace

kirk,

—

of

through<£-

one

passing

are

we

testing periods for nations and in¬
dividuals. Either they go down in

a

Bought

ef¬

urges

progress.

Churchill after

1942.

27, 1945

Let's Save America!

SEC-Hanrahan Successor

of Ganson Purcell from the Securities and Ex¬
change Commission, of which he was Chairman, announced in an
exchange of letters between the Chairman and President Truman
made public this week, will become effective on June 30.
With Mr.
Purcell's resignation the President on June 24 sent to the Senate the
of Edmond M. Hanrahan to be a member of the Commission
for the remainder of Mr. Pur-^
imum"
of government interfer¬
cell's term expiring June 5, 1947.
The resignation

Mr.

Thursday, June

f

:

Number 4502

(Volume 163

Officials of Ftutd

Debt Reduction and Money

Government Bond

By THOMAS I. PARKINSON*

and Woild Bank Portfolio Management
(Tenth of

KYRIAKOS

Series)

a

Savannah

At

Mr.

Varvaressos

elected executive director of

was

Bank,

representing, in addi¬
tion to his native Greece, Egypt,

the

Iran, Iraq and

Ethiopia. Thus
he casts a bloc

of gov¬
ernment obligations for both Secondary Reserve and for Investment
Account.
Prescribes method of figuring adequacy of these ac¬
counts and urges estimates be made at least semi-annually.
Fore¬
casts little change in interest rates for several years, both because of
government fiscal policies and because of large supply of money,
estimated at $50 billions, in excess of legitimate business needs.

votes,

of 2,230

When your President honored

of
the Bank's to¬
tal as of the
date
of
his
2.62%

or

convention he asked

your

United

the time of his

view

election to this

fact

post

your

credit

ing the Greek
K.

to

such

UNRHA

the

BW

At

Conference.

time

1944 Mr.

in

chairman of the

Varvaressos was

Greek

delegation, being at that
Governor of the Bank of
Extra¬

Ambassador

and

Greece

Objectives of Portfolio Manage¬

ordinary for Economic and Finan¬
cial Matters.
He is now 63 years
old.

at the fac¬

Varvaressos studied

There
tives

risk

defined

the

meet

declines

meet

when

due,

pay¬

can

skip

we

such considerations as diversifica¬

Account

count,

two

in

or

parts

de¬

ac¬

Reserve

Secondary

the

counts,

principal

and

into

vestments

Effinger

to

interest

ments

is

to

accomplished by dividing bank in¬
C.

R.

funds

needed

One

posits and increases in loans. The
other is to provide income. Such
different obiectives can best be

ability of the
obligor to ob¬
tain

bank

needed

is

as

principal objec¬
portfolio manage¬
to
provide funds

two

are

in

ment.

in

assets, if

credit

the Investment Ac¬

and

managing each in ac¬
function.

and

cordance with its

Second¬
should be
directed toward maintaining it, a1
economic studies in Germany. On
all times, in an amount adequate
maturity distribution.
his return to Greece he was made
There is the well-known rule of to meet declines in deposits and
director of the statistical section
increases in loans. The Investment
ulty of law of the University of

Athens and

pursued his advanced

Sub¬

Greek Government.

of the

sequently he

economics

of

fessor

appointed pro¬

was

Uni¬

the

at

tion by

The management of the

obligor and differences in

grades of bonds and confine our¬
selves largely to the question of

maturity distribution
calls
for
approximately

thumb

maturing

amounts

equal

each

Account,

short time in 1922 Varva¬

a

practiced

ressos

Athens.

in

law

During the following years while
professor

a

university he

the

at

fore the

total

the

hand,

sensible

cause

ture
to

to

em¬

security benefits which they ex¬
pect to receive at some time In the
future
are
dependent
on
the
Government's meeting promptly
the obligation of that
portion of its debt which has been
placed in these funds. Therefore,
the $20 billions so held must be
considered as an important part
of the Government's outstanding
fully

the first of this year the

the ex¬

penditure of the proceeds of the
borrowings. The best management
of debt by individual, corporate
or

government debtors is to pro¬
as
soon
as
possible for its

vide

reduction and final liquidation.

(Continued

by

released

statement

*A

3515)

on page

Parkinson through

debt.

benefits

government
debt;
the
extinguished with

were

Syndicate.

Press

sound

investment principles.

(Continued

1946.

on page

We maintain markets

3500)

in

became associated with the bank of
issue

of

the

country

economic

as

Suburban Propane Gas

adviser, and later become deputyand

governor

He

governor

several times Minister of

was

Pacific

Trading in New York Stocks

Coast

in¬
abroad.

Our revised

Greece in numerous

resented

conference

ternational

Corporatiosa

thereof.

Taca

Finance and in that capacity rep¬

now

During the years of Nazi occupa¬
tion of Greece Varvaressos was a

Directory of stocks traded

available. There

are

the hours of 10:00 a. m.
the New York Stock

219 issues traded

and 6:30

p. m.

Exchanges is

Pacific Coast

on

Airways, S.

A.*

these exchanges between

on

(EDST) that

are

JMaxson Food

also traded on

Exchange or the New York Curb

Systems, Inc., pm.

.

Exchange.

member of the Greek Government-

in

in-exile

the

after

returned

he

try,

the

his

to

the

of

Governor

as

of

COPY

A

where,

from

London,

liberation

iBank

of

Production
which

the

government
Ministries of

the

(Finance,

and

REQUEST

^Prospectus Available

from

SAN

NEW

NEW

YORK

FRANCISCO

STOCK

SAN

YORK

STOCK

EXCHANGE

EXCHANGE

.

•

NEW

LOS

YORK

ANGELES

CURS
STOCK

SEATTLE

FRANCISCO

jl

Eastman, Dillon
MEMBERS NEW YORK STOCK

SPOKANE

well as from
post of the Governor of the

Bank, he resigned last October.

Tel. Bowling

(Special

to

The

CHICAGO,
Wilder

has

Financial

Ohronicle)

Available

—

Renins

Angeles

HartLrd

Patersoa

Carlisle

Bulletin Report:
Direct Pricale Wires to our

ILL. —Harry
E.
rejoined the Illinois

Company,
231 South La Salle
Street, members of the Chicago
Stock Exchange, after serving in

Los

Chicago

Euston

Co.

&

EXCHANGE

Bell System Tel. NY 1-752

Green 9-3100

Philadelphia

J

Street, New York 5, N. lu

15 Broad

Rejoins Illinois Company

h *•,

\

EXCHANGE
EXCHANGE

a^

position,

(

Kaiser & Co.

Prime Minister of the

of

UPON

MAILED

<

position
MEMBERS

charge

BE

coun¬

Greece. In 1945 he became Deputy

in

WILL

San Francisco, Los Angeles,

correspondents

in

Chicago and St. Louis

Barcalo Manufacturing Co.

the U. S. Navy.

Iowa Public Service

Arkansas-Missouri Power*

E. F. Hutton Adds Two
(Special

LOS

to

The

Financial

Chronicle)

CALIF.—

ANGELES,

and Ben F.
Fletcher have joined the staff of
E. F. Hutton
&
Company, 623
Charles

Barrington

Teletype:

Ward & Co.

rl-1286
NY< 1-1287

11-1288

Est.

120 BROADWAY, NEW

Ass'n

YORK 5

Puget Sound Pwr. & Lt.

Black Hills Power & Light

1926

Members N. Y. Security Dealers

Common

Common

Telephone:
RE 2-8700

Common

Common

Republic Natural Gas

Central Illinois Elec. & Gas

Common

Common

Rockland Light & Power

Central Illinois Public Service

South Spring Street.

$6.00

Common

Preferred

Scranton

Dayton Power & Light*

S. Weinberg & Co.
Members. N. Y. Security

MUNICIPAL BONDS

Empire District Electric

CORPORATE BONDS

Dealers Ass'n

Teletype

NY

LOCAL STOCKS
•

in

for

all

a

Common

Utah Power &

Green Mountain Power
$6.00

Render

Southern Colorado Power

Common

1-2763

*

Available

Light

Common

Preferred

Prospectus

Gas & Elect.*

Common

Federal Water & Gas

Whitehall 3-7830

New York 6

Sioux City

Common

Telephone

60 Wall Street

Bell

STATE AND

Electric*

Common

Common

to Dealers

and Bankers only

brokerage service

Unlisted

Banks

and

Securities

The Robinson-Humphrey
Established

Dealers.




RHODES-HAVERTY BLDG.
Teletype

AT 288

Company

1894

ATLANTA

1,

GEORGIA

Long Distance

108

G. A. Saxton & Co.,
70 Pine Street, New
WHitehall 4-4970

Mr.

the Continental

managed primarily from

be, while adhering to

may

tion, Virginia Beach, Va., June 21,

a

might be expected to flow from
it. Those of us who lived prior to
1900 believed, and still believe,
that there is no public benefit in

T. I. Parkinson

ployees and to industrial workers
who
presently value the social

Since

years

of govern¬
debt and the benefits which

ment

fu¬

pensioned

and

recent

in

heard

We

lot about management

payments

federal

course

to pursue.

be¬

the

"management
is the onlyfor public policy
of

which

debt"

the

increasing income, in so far as

or

Virginia Bankers Associa¬

other

of

thought of

lightly

we

total
debt.

reduction

That is the kind

these

not

represents,

hope, a start toward eventual
pay-off of our government's

funds

be

obligations from
to $269 V2 billions.

This

debt

in

government

the total of $278

ing

serv¬

trust

debt has been
redemptions of matur¬

government

reduced by

point of view of maintaining

the

Effinger be¬

♦An address by Mr.

the

on

should be

versity of Athens.
For

Account

Reserve

ary

for

which

of

Government

ought

ment

is

involved

Varvaressos

funds

held

a

no

risk

trust

for civil

held

Of this amount, $20 billions were

$278 billions.

so-

called

ment

lem.

assets.

Because

tic City, head¬

delegation

for

than

more

the

in

—

major part of

Atlan¬

in

but

the

they

account

not

was

Savannah,

at

of
that

the beginning of 194®

The total debt of the U. S. Government at
was

it has merits. ice pensions
It is simple and tends to limit and social se¬
speculation. But I believe there is curity
bene¬
Governa
sounder approach to the prob¬ fits.

in

and calls for

urging curtailment of this practice

Undoubtedly

year.

Government

Varvaressos at

Reserve Board

prompt action.

bank

<»

States

securities

the increased money

with the invitation to address

me

to talk on the subject of managing

me

investments in

Mr.

election.

pluses, Mr. Parkinson maintains inflationary trend is still evident in
supply arising from bank purchases of out¬
standing government bonds. Commends recent report of Federal

Mr. Effinger discusses problems involved in bank holdings

Bank

U. S.

Noting recent national debt reduction has come about entirely by
application of Treasury surplus cash and not from revenue sur¬

Vice-President, Irving Trust Company, New York City

Executive Director of the
World

President, Equitable Life Assurance Society of the

By R. C. EFFINGER*

VARVARESSOS

3475

CHRONICLE

THE COMMERCIAL & FINANCIAL

Inc.

York 5, N. Y.
Teletype NY 1-609

THE COMMERCIAL & FINANCIAL CHRONICLE

3476

BALTIMORE

New

England Markets

Bayway Terminal
Retail New England Coverage

Davis Coal & Coke

Secondary Distributions

Drug

Emerson

Life

Ins.

Bank and Insurance Stocks

Co.

Industrials—Utilities

of Baltimore

Inactive Securities

Noxzema Chemical

STEIN BROS. & BOYCE

F. L. PUTNAM & CO.. INC.
77 Franklin Street, Boston 10, Mass.

Members New York & Baltimore Stock

Tel.

Exchanges and other leading exchanges
6

S.

Portland

CALVERT

•

•

Common

Monumental

•

•

LIBerty 2340

Providence

ST., BALTIMORE 2

Springfield

Bell Teletype BA 308

New York Telephone Rector 2-3327

DES MOINES

Inflation in Real Estate Pi ices

Securities Corporation
King

By ELLIOTT V. BELL*

Superintendent of Banks, New York State

&

King,
40
Exchange
Place, New York City, members of

Maintaining present real estate prices plainly indicate inflation
Supt. Bell lays causes to housing shortage and to increased indi¬
vidual incomes. Points out previous postwar booms have resulted
in return to old price levels, and emphasizes disaster may result
from abrupt drop in real estate prices.
Says present high prices
may cause a buyers' strike, and long deferred prosperity may he
short-lived and illusory.
Holds real estate prices are not governed
by reproduction costs and urges moderation and caution in extend¬
ing mortgage loans.

the

New York Security Dealers
Association, announce the forma¬
tion of King & King Securities
Corp., effective July 1 next, and
the dissolution of the partnership
of King & King.
Officers in the
new corporation will be Martin I.
King, President; Samuel H. King,
Vice-President and Treasurer, and
Casper A. Rogers, Secretary. The
address
and
telephone number
will remain unchanged.

I propose

to talk to you today about the inflation in real estate
This is, I take it, the most difficult and important problem

prices.
with

PHILADELPHIA

BOSTON

loan

Dealer Inquiries

which

savings

WHEELOCK & CUMMINS
INCORPORATED

Thursday, June 27, 1946

————

the

and

wise

in

Iowa Power & Light Co.

United Light

Co.

City Gas & Electric Co.

Preferred

and

Penna.

Common

never

Engineering Co.

the

in

Warner Co. common

Sionx

tell

how

you

Sterling Motor Truck

Preferreds

there¬
that I
'

should

Vinco Corp.

& Railways Co.

right,

fore,

Empire Steel Corp. com.

Preferred

Dwight Mfg.

never

times.

So. Colorado Power Co. com.

Knitting

EQUITABLE
DES

MOINES

BUILDING
9, IOWA

H. M.

Bell Tele. DM 184

Phone 4-7159

Byllesby & Company

struggling

DETROIT

Tele. PH 73

Phone Rittenhouse 3717

the

Looking

fu¬
Elliott V. Bell

backward it is

plain to all of
that the mistakes and excesses

us

hardship
and
depression of the 30s; the
neglect and mismanagement of
world problems in the 30s pro¬
of the

Electromaster, Inc.
Descriptive Analysis
on

Prospectus furnished on

Wellman Engineering

request

request

Eastern

Corporation

Sheller

Manufacturing Corp.

Inquiries invited

Western Light
Afemos

Report furnished

du

Pont, Homsey Co.
31

MILK

STREET

BOSTON 0,
HANcock 8200

on

& Dolphyn
Detroit

Stock

Exchange

Buhl Bid?., Detroit 26

MASS.

Teletype BS 424

Cadillac 5752

& Telephone

the

the 40s.

If

desolation of

and

war
we

could really under¬

would have

we

a

clue to

Tele. BE 507

N. Y. Telephone CAnal 6-8100

Estate

Real

Now

we

Inflation
in

are

inflation

of

and

Is

Manifest

another

we

do

period

not

want

to

repeat the old mistakes. In no
area of our economy is the cur¬
rent inflation so plain as in the
field of real estate.
I suppose every one

stand the events and conditions of

today

Request

on

takes of the previous period of in¬
flation.

20s produced the

request

Mercier, McDowell
Members

duced

have had experience in
with defaulted mort¬

and frozen real estate, but
the problems of those days of
depression grew out of the mis¬
gages

fore¬

us can

bad

only just in recent
from the terrible
problems of the Great Depression.
All of you

ture.

PHILADELPHIA OFFICE

Stock Exchange Bldg. Phila. 2

Mills

of

in

have

the

tell

should

we

sorry

emerged

years

problem. None

Utica

of

here

you

could tell out of first-hand knowl¬

edge some fantastic stories of

BUCKLEY BROTHERS
Members New York, Philadelphia
Los

Angeles

1420 Walnut

and

Exchanges

Stock

Street, Philadelphia 2

New York

Los Angeles

*An

the

address

annual

in
be

be any bad times.

look

upon

be

all

But, of jcourse, if we were
good times there would

We

we

Bank¬

ment

times

to

events

could

we

all wise in

Depart¬

ing

com.

If

good

have

deal. It is only

Botany Worsted Mills pfd. & A

of

course

future years.

manage¬

ments have to

Invited

probable

by Supt. Bell at
Convention of New

York State

League of Savings and
Loan Associations, Saranac Inn,
N. Y., June 22, 1946.

transactions

tual

the

estate market today.

real

hear

ac¬

taking place in
I

good many of them every

a

For example, a man I know
(Continued on page 3509)

day.

Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone—WHitehall 3-7253
Private Wire System between
Philadelphia, New York and Los Angeles

SALT LAKE CITY

El Salvador Announces

GRAND RAPIDS

American Acoustics

We

6% Pfd.

(q) 4
7

Stearns

Mfg. Co.

Yz yield

convertible into

2% Com.

backlog

orders.

of

50

cents

Coihtnmon

share

\V:
>

Trading Markets

in

H.Bell
& Co.
Federal

Tel. HUB.

St., Boston 10, Mass.

0810

white, noble & co.
Members Detroit Stock Exchange

GRAND RAPIDS 2
MICH. TRUST BLDG.

Teletype BS 189

New York Tel. CAnal 6-3667
New York

Allentown

Philadelphia
Easton

interest

in

Utah Power & Light
Utah-Idaho Sugar

Amalgamated Sugar

Wringer Co. Com.

Washington
Harrisburg Portland

Phone 94336

Teletype GR 184

So. Colorado Power Com.

Edward l. burton
& company

BOENNING & CO.
1606 Walnut

St., Philadelphia 3

Pennypacker 8200
Private

Phono

COrtlandt

PH 30
to

ESTABLISHED 1699

160 S. Main street

Salt Lake City
BELL

SYSTEM

Utah

1,

TELETYPE

SU

464

N.Y.C.

TRADING MARKETS

American Turf Ass'n

Corp.

Merchants Distilling Co.
Louisville Gas Pref.
Winn & Lovett Grocery

M. J. Whittall Assoc. 2nd Pfd.

VIRGINIA—WEST VIRGINIA
NORTH and SOUTH

negotiations with For¬
eign Bondholders Protective
Council, Inc., and pursuant to De¬
Law

cree

m

BANKERS BOND "i
Incorporated

1st

Floor, Kentucky Home Life Bldg.
LOUISVILLE 2, KENTUCKY

Long Distance 238-9

Bell Tele. LS 186

NASHVILLE

UTAH

MUNICIPAL

MINING

STOCKS
Established

1898

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

CRAIGIE&CO.
RICHMOND, VIRGINIA
Bell System Teletype:

RH 83 & 84

Exchange

Stock Exchange Building
Salt Lake City, Utah

Teletype SU 67

Phone 5-6172

UTICA. N.Y.

ST. LOUIS

Wiley Bros

Common

Stix & Co.

Preferred

Utica & Mohawk

INCORPORATED

INVESTMENT

England Lime

SECURITIES

Cotton Mills,

Inc.

INQUIRIES INVITED

Union Twist Drill

509

OLIVE

STREET

MOHAWK VALLEY

Dayton Haigney & Company
75 Federal Street, Boston 10

Private New York Telephone
REctor 2-5035




29,

Fund

Bonds, Series C, dated July
1923, due July 1, 1957; and
$306,994.25
Certificates of De¬
ferred Interest (Scrip Certificates)
with

respect

Bonds of

to

The

Foreign Bondholders Pro¬

part:

The offer

provides that new ex¬
ternal sinking fund dollar bonds
dated Jan.
1, 1946, due Jan. 1,

amount

equal to $10,032,500; that

current

the rates
3%% on the new
in exchange, par for

interest will be paid at
of

4%

and

bonds offered

of the outstanding bonds of
A and Series C respec¬

par,

Series

initially
of the
dollar bonds

tively; that sinking fund
will
approximate 2.5%

principal of the new
issuable under the offer; and
3%

that
issued for

bonds will be

eight years' interest arrears,

Oneida Ltd.

Preferred

New

Dec.

dated

BROKERS

Telephone 3-9137

Boston Railroad Holding Co.

Megowan-Educator Food Co.

of

Gold Bonds, Series A,
July 1, 1923, due July 1,
1948; $5,285,600 7% Sinking Fund

ing

new

Hollingsworth & Whitney

296

as

1976 shall be issued in an

BONDS

Boston Edison

Graflex Inc.

No.

implemented by Executive
Decree of April>26, 1946: $2,475,000 Customs First Lien 8% Sink¬
1945,

tective Council states in

CAROLINA

•F. W."

Teletype BS 373

of¬

of the follow¬

Series C.

Dealers in

Girdler Corporation

Eastern Utilities Assoc. Conv.

Telephone Liberty 8817

pub¬

an

following

BROKERS and DEALERS

Boston Sand & Gravel

Square, Boston 9, Mass.

27

ing outstanding dollar obligations,

issued

for

10 P. 0.

the holders

to

June

announcement of

Gold

7-1202

RICHMOND, VA.

American Air Filter

Nu-Enamel

ieneral Stock & Bond Corp.

on

an

1,

LOUISVILLE

U. S. Sugar

Salvador

El

fer

Bag & Paper

Common

New Debt Plan
lished

could

earnings

Incorporated
Investment 'Securities
49

Southern Advance

American

12 months.

next

current

a

Common Stock

Produces sound-proof tile and plaster.
No shortage of raw materials. Large
show

have

Stocks

-

Bonds

St. Louis l.Mo.

INVESTING COMPANY
INC.

Nashville, Tennessee

Members St. Louis Stock

Exchange

238 Genesee

Tel. 4-3195-6-7

Tele. UT 16

be made

1938, cash payments will

$1,000 bond of Series A ana
Series C of $365 and $213 respec¬

per

tively,

which

are

approximate y

85% and 50% of the

amounts ow¬

ing.
The

St., Utica 2, N. Y.

due

July 1, 1938 to and including Jan.
1, 1946 funded at 50%' of the
amount owing; and, furthermore,
to holders who did not accept the
1933 and 1936 plans for past due
interest to and including Jan. h

dollar

offer

principal amounts
bonds

issuable

of new

under

are:

(Continued on page

3519)

3477

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4502

Volume 163

To

Brand Names and Fiee Enterprise
By HENRY E. ABT*
Managing Director, Brand Names Research Foundation, Inc.

Asserting there is a

struggle between "Big Labor'1 and "Big Bureauc¬

public pits manufacturer against manufacturer in competition of
free enterprise and competitive system will con¬
tinue.
Calls attention to attacks on distributive system and Con¬

as

brand products,

gressional threats of "grade labeling," and urges producers of
challenge and organize for struggle.

brand products to accept

we've been talking about all

the war—the "tomorrow" when full production

through

will—we

hope—provide
they believe they have gotten all
that the traffic for the moment

maximum em¬

ployment with
such

a

tional

will

income

na¬

that if production does
not proceed—if not at once, then
sometime soon—they will begin
to lose much of the power they so

anyone,

b y

balanced

of goods

flow

that the Amer¬

point,
therefore, labor relations, tempo¬
rarily at least, will be stabilized.
Where do we go from there?

living will
levels

of

reach

only the
daring
could
dream
that

most

in

of

Let's

Henry E. Abt

up

slowed

have

who

ion too shrewd not to let

tion

opin¬

at

ing of

SEC, as the board has chosen to
keep the nature of the practices
a
secret
from
the
Association

in investment house
circles all over the country that,
now
that the industry has had
the chance to express itself on
men

the

question, the Commission will
likely either drop the issue
entirely or agree to a considerably
tempered compromise.
very

would

be

Commission

the

incredible for

acting,

—

it

as

is

supposed to be, in the public in¬
terest
in

to take

—

the matter,

any

other

course

Wallace

Fulton,

executive

Association,

the

of

rector

the

emphasis

of so-called

"collective interest," as

compared

Mr. Abt before
Advertising Associa¬

socialism

Spokane, Wash., June 26,

(Continued

1946.

with

on page

SGHENLEY DISTILLERS CORPORATION
NOTE—From time to time, in this space,
there will appear an

Americans. This is number 131 of a

The Score!

the

Association,

the

Chronicle

when

for

by

asked

details

By MARK MERIT

about

the Association's counter-proposal

National Association of Securities

vitally affects the public interest.

for

to

known

have

Some

sub¬

sections

the

of

industry

mitted

a

counter-proposal

on

the

question to the Commission and
it is just possible that the Com¬
mission

it is

understood, merely by agree¬

ing to send out a "warning letter"
to its membership advising them
to

desist

from

certain

practices,

though just what these practices

are

consquently

the NASD's

very

securities

the

market

for

fortunately

active,

dustries seeking new capital,
the demand for the

admittedly

great,

new

is

in¬
that

issues is

these

circles

point out.

pulls this recorder up short

of

of

one

quoted excerpt was to

March there

were

for various evasions of the

ticular state.

number of convictions in the wet

in the

same

We take

pleasure in announcing that

industry, too happy.

Here's the

associated with

now

us

in

109

were

areas

cases

and 64

filed
non¬

submitted

criminal complaints

for action by the Administrator.
There were 4 acquittals in dry

our

during March.

areas

Philadelphia Office

255 convictions were
in

KING & KING

dry

areas

obtained

compared with 105

convictions in wet areas for the

CORP.

of March. 291 criminal

month

complaints were filed in dry
areas during March."

New York 5, N. Y.

Phillips, Schmertz & Robinson

the dissolution of

and

verbatim:

score,

"There

is

we

who do

story will not make those

the formation of

40 Exchange Place

state—which

feel inclined to do. The whole

not like our

3491)

liquor

sections of the par¬
We did not state the

laws in the dry

July 1st, 1946

SECURITIES

during the month of
255 convictions

the effect that

NEWTON J. ASPDEN
We wish to announce

important southern

our

states. The

now

which

an

periodically

by the Liquor Control Board

issued

in the wet

As ot

quoted

recently

having

excerpt from a review

areas

often

ardent disciple of Prohi¬

A very

bition

is

series.

SCHENLEY DISTILLERS CORP.

to the Commission refused to talk

they feel.

advertisement which
to our fellow

will be of interest

hope

we

feels that he is the spokesman for

strikingly reminiscent of the to¬
talitarian

feel.

despite the fact that the subject

Dealers

employee of the

an

di¬

that may in

instance stand in their paths

circles

who

because

ruthlessness- of

and

of Governors of the

The Board

or

may find
their way in
supply to the most useful
productive channels, these

membership and investment house
circles in general.

The NASD would settle the issue,

—and

*An address by

tion

mystery to everyone ex¬

a

cept the board members and the

may
adopt the NASD's
suggestions exactly as presented.

any

produc¬

proceed from whatever point

Pacific

is

are

own—partic¬

calloused

with individual welfare, are
the

and

dis¬

final

position, and it is the general feel¬

It

relative

thef>

before

ularly of minorities

hampered

grabs for power are in my

is

for

a

great

stock

itself

because that person chanced to be

savings

Commission's proposed Rule X-15C2-3
prohibit so-called "insiders" from participation in new

Commission

to

offerings

new

possible benefits that money can
provide, the investment markets
should be kept as free as possible
so
that individual and corporate

The Security and Exchange

now

the

right

the

anyone

in

bringing out the issue would
be
entirely
unfair,
they hold.
Money is like any other com¬
modity and to obtain the fullest

which would
issues

deny

participate

firm

ests other than their

the

The

opportunistic

with

reconversion

moment are big labor

over

both—their indifference to inter¬

will soon be

and

economic

big bureaucracy.

Labor leaders

going at full tilt.

the

of

feeling in investment house circles all

fearful of even
proposal, feeling that
the NASD may, but should not
counterance any move at all to
alter basic trade custom. It is only

at

productive machine we built

to meet war needs

about

The principal contenders

process.

the

that

tion

mistake

no

Matter

the country is
that it would be incredible for the SEC—after hearing the opinions
of the industry—to do anything else but to drop its Proposed Rule
X-15C2-3 entirely or at least to agree to a considerably tempered
version. The possibility is good Commission may agree to counter¬
proposal submitted by the NASD wherein the issue would be com¬
promised by sending out a "warning letter" but industry is wary
of any move at all which would alter basic trade practice.

A mighty struggles goes

control

for

on

can

make

fact.

one

be little ques¬

vast

some

Big Labor vs. Big Bureaucracy

yester¬

years.
There

At

prize.

anxiously

standard

ican

They know, as well as

bear.

on

Of Allotment of New Stock Issues to "Insiders"
General

racy" to control the economic processes, Mr. Abt maintains as long

This is the eve of the "tomorrow"

Early Decision Is Expected From SEC

KING & KING
(Partnership)

PHILADELPHIA

PITTSBURGH
Union Trnst Building
Grant

1421

Chestnut Street

Rittenhouse 8189

1851

chides
"You don't
explain why those dry areas prefer
to be without liquor, nor why in so
correspondent, who

Our

states in his letter:

ub>

local option contests, more

many

and

more

towns and

counties

are

Juno 25, 1946

voting liquor out." But the facts
which are a matter of public record

conclusively that liquor does
"out" following a local op¬

prove

not go

We take

pleasure in announcing that

tion election

We

MR. JOSEPH WALKER,

is

now

pleased to announce that

MR. ALFRED L. POWELL
(formerly Captain, U. S. Army Air Corps)

associated with us.

the

in

Joseph malker$$oit$
FOUNDED 1855

now

our

associated with

When

us

trading department

YORK

legal liquor is voted "out,"

illegal sellers

come i n

and their

long pockets begin to bulge with
illegal profits and the equivalent of
unpaid taxes.

Members New

NEW

into the
and Local

of alcoholic beverages goes

C. E. de Willers & Co

Exchanil

BROADWAY

prohibit. What goes "out" is
which under legal sale

revenue

coffers of Federal, State

the

120

national vote, for

Treasuries, in the form of taxes.
is

Members New York Stock

or a

that matter—that Prohibition does
not

JR.

U.S.N.R.

Formerly Lieutenant Commander,

are

York Security Dealers Association

120 Broadway, New York 5, N.

Y.

Teletype NY 1-2361

REctor 2-7630

Neither the

gentleman who wrote

this recorder can dis¬
suade the human race from im¬
to

nor

us,

bibing
human

in alcoholic beverages—a
custom since the earliest

days of civilization. All we can do
is to strive for an understanding of
difference

the

between

and

use

abuse.
We are pleased

to announce that

We

Mr. Bledsoe

C. Pinkerton

announce

the death of

our

Vice President

Capt., A. U. S.
has become

We resided in

with profound sorrow

we

associated with us.

and Midwestern Representative

a

large mid-west

city during the period carelessly
termed "Prohibition." Whenever
are

might

reminded that Prohibition

come

back again,

we

visit,

mentally, the "chamber of horrors"

Ac/li.IGrtJaf) (i).
established
Members

New

York

ONE WALL




MARVIN C. LEGGETT

other leading exchanges

STREET
Telephone DIgby 4-2525

NEW YORK

period and shudder again.

FREE—Send

1865

Stock Exchange and

of that

Dept.
N.

a

postcard to mark merit
distillers
corp.,

schenley

of

DISTRIBUTORS GROUP, Incorporated

18a,

350

Fifth

Avenue,

N.

Y. 1,
book
earlier

Y„ and you will receive a 96-page

containing
articles.

illustrated

reprints

of

THE COMMERCIAL & FINANCIAL CHRONICLE

3478

Trading Markets

International Fnnd and

Chefford Master
Com.

on selection of staffs.
Problem
relationship with the Economic and Social Council

of institution's

of United Nations still

C. L. Schmidt & Co.
South La Salle Street

120

CHICAGO 3
Tel.

Tele. CG 271

Randolph 6960

unsettled,

to

nominate

a

"candidate" for the presidency of
the
Bank,
but
with
Eugene.

Member, National Association

of Securities Dealers

Meyer's

selection,

by

appointment

the

Smith
fect

Wholesale Distributors
Middle West

Pacific Coast

—

MARKET

DISTRIBUTION

has

LOS ANGELES 14
650 S. SpringSt.

135 LaSalle St
State 6502

Michigan 4181

CG 99

LA 255

last

at

been

remedied.

reality more than
Vice-President; he is realiy an al¬

ternate president.

head

Mr.

of

the

Bank,

managing

as

Mr.

and

of

considerable

experience.

Being wise, they are proceeding
cautiously. As Mr. Meyer puts it,
"I don't want to be hurried." Yet,

Fund

Utilities Corp.

and

Bank,

presumably

somewhere in this country.
a

meeting in September

Such

was

pro¬

vided for at the governors' inau¬

The Chicago Corp.

meeting

gural

March.

The-Muter-Co.
on

Request

in

Savannah

Indeed, the

desire

of

from
Circular

members

borrowers

international
is such

of the

pressure

would-be

the

as

last

Bank's

inevitably to

Members Principal Stock Exchanges

Inter- Palliative measures and
relief are
essential in the interim
period
Chamber of But
until
countries
have
dealt
Commerce by with these problems it

The

Bank

call in

has

commenced

capital, not for the

to

upon which
applications for loans.

So.

Wall St.

1

-

chairman

Industries, Inc., Pfd.

•Camden

Forge Co., Common

Snap-On Tools Corp., Com.
•Prospectus Available

cies.

on

Request.

yml H.Davis & Go.
Established 1916
Members Principal Stock Exchanges

Chicago Board of Trade

10 So. La Salle St., Chicago 3
Tel. Franklin 8622

Teletype CG 405
Indianapolis, Ind.
Rockford, 111.
Cleveland, Ohio

FINANCIAL

ADVERTISING
All

Plans

Its

Branches

Prepared—Conference Invited

Guenther Law

-

Incorporated
131 Cedar Street

New York 6, N. Y.

Telephone COrtlandt 7'5C60
Boston

W. R.

Fund

the

what goes on in

on

directors

Bank

and

There is no
bulletin board for the public's il¬
lumination. Occasionally, there is

meetings is

scanty.

small press

conference, meagerly attended, for the subjects are
a

too

technical

the

of

interest

to

average

be

to

Washington corre¬
All
press
contacts,

spondent.

at least, have been
by the two executive

theoretically
entrusted

to
Mr.
Gutt and
Mr.
respectively.
Since both

boards,
Meyer,
Fund

Bank

and

internation¬

are

al

institutions, those two gentle¬
men have to tread carefuLy,
lest
unwittingly
of

member

offend

they
the

other

board

or

Although

this

(Continued

ber's
bins

commit

constituent
with

the

on

Chicago Philadelphia San Francisco

of

system

s

WASHINGTON, D. C. —The credits to Poland totaling $90,000,000, which the Administration has held up pending receipt of satis¬
factory
assurances
from
that®
—
to
undertake.
country as to free elections, free Bank
Then, too,
the

sumed

ceived.
is

have

reported

press

now

in

as

misquoted

that Poland
ested

It

is

was

no

pre¬

satisfactory
been

Polish Ambassador

now

the

light.

green

therefore that

assurances

re¬

re¬

Lange
that

stating
him

saying
longer inter¬

Export-Import
Bank
is
busy considering
various other
loan requests. Brazil, which has an
ambitious
five-year program of
railroad, highway and port con¬
struction, is looking for $40 or
$50 millions, and Chile, with a di¬
versified program, is seeking an¬
other $20 million or so of money.

Ethiopia has not quite such close
on

but is negotiating
surely get something.

us,

and

will

The

Brazilian

case

differences

has

aroused

of

opinion
among
American officials, with
some
holding
that
a
country
whose
should

dollar
not

assets

come

are

here

growing

for

loans.

But the opposite Washington view
is that it is simply a case of fi¬

that

Fred.W. FairmanCo.L
JMMHMBSINCE1908HBHBBH 1
Members

sense

good

business

for

is

the

the

neighbor

good

there

is

danger
and

nevertheless

now of a

1921.

oVer the

"To

Whether

tra

Congress for the

ex¬

$1,250 million for the ExpQrt-

Import Bank
Council

this
year

decided

should

be

wait until
is a questiop

session,

or

to do so
have to redecide under

NAC may

Chairman,

Secretary of
Treasury John Snyder.
The

new

the

National Advisory

as

once

done

its

the administra¬

not

or

tion will ask

Administration has

plicating
British

the

avoided

handling

loans

by

asking

monetary
shortage

of

Board of

com¬

of

production,

Trade

For

of

rising

in

monetary

causes

ing

since

been;

financing, and cheap
debt

of

values

involve
and

must

be

existing purchasing
"With

the

these

possible

aims
in

Some officials

NAC

acting

are

become

will

"as

gress has

be

a

loan

increase

an

goods,

is

in

.hreatens currency
stability.
The instability of currency

tuate

social
inequalities, falling
particular severity on the
thrifty, the pruden
and those

present

,

who

supported

financial

universally

chase

future

of

their

effort

war

country's

by

the

pur¬

bonds."

Succeeds Irving J. Galpeer who has
resigned to enter private law
Mr. Newfield has been with SEC since 1935 and was
Chiaf of the Litigation 8c Enforcement Section of the

practice.

Corporate

Finance Division
The

at

Securities

Philadelphia for the last four

and

Exchange

appointment of Mayer U.
I To

N

to

i;

Regional

who

recently

announced

re¬

the
private
practice of law
Mr.

-

hopeful

New-

field

of

the

council"

past four
of the

years he has been Chief
Litigation and Enforcement

Section of the

Division
main

in

Corporation Finance
the
Commission's

office

Philadelphia,

in

Pennsylvania.

Charles S. Andes With
The Ohio

joined

staff

of

Company

S.

Andes

has

an

High

in

Andes

become

associated

with the Ohio

in

assigned it. If so, there
need for Congress to

OHIO—Charles

CLEVELAND,

Co^ mission
1935

as

attorney

no

the

Atlanta

has

Company, 51 North
Street,
Columbus.
Mr.

for

been

the
in

past

the

three

armed

years
forces.

Regional
Mayer

U.

Newfield

Of¬

Prior thereto he

fice.

the

Mericka & Co. for many years.

For

was

with Wm< J.

Markets In—

DEEP ROCK OIL CORP. Common

MUNISING PAPER

CHICAGO SO. SHORE & SO. BEND RR. Common

Common Stock

company.

REEVES-ELY LABORATORIES Conv. Preference

SILLS, MINTON & COMPANY
INCORPORATED
Members Chicago Stock

CHICAGO 4, ILLINOIS
Telephone Randolph 4068
Direct Private Wire to New York
System CG 537




H. M.

Incorporated

135

209 SO. LA SALLE ST.. CHICAGO 4. n.L.
Direct

Private

Wire

Teletype CG 884
to

J.

G.

Byllesby and Company

Exchange

Telephone Dearborn 1421
WHITE

&

CO.,

New

York

the

Regional Adminis-

signed to enter

under

Export-Import Bank.

suc¬

Irving J.

•Gaipe^r

nomina¬

tired

Of¬

to

has

Assistant

as

®-

i

York

e w

fice

Commission

Newfield

years.

N-l,

this

the

illusion

an

Mayer U. Newfield Is Named New Assistant
Regional Director for New York SEC Office

clarify the relations of NAC and
the

of

with

immediate

and
leave to Bank the work that Con¬

will

not

mass

gambling, and not on creative offort; moreover, it tends o accen¬

reducing

its

es¬

substantially lessens the creation
wealth, for it is a premium on

the achievement

is

the

in

an

preserving,

of

power.

world

disordered sta e,
of

to
of

"5.

found of

Court was
Export-Import

The

rising

arrested
as
rapid^ as
by bringing budgets un¬
der control, and in most countries
must

of

trade

wealth.

An increase of the

creation
and

be

Snyder will be watched with in¬
that

to

condition

respond

money

monetiza-

lead

and

real

purchasing powers and particular¬
ly of wages, which does not cor¬

of equi ies.

the

Bank's relations with NAC

basis.

ac¬

"This increase in
buying power

Supreme

announced.

terest.

large

are

create

increasing, and in particular dis¬
tributing wealth on an equitable

substan ial.

are

production

Currency s.ability is

sential

cumulations of purchasing power,
continued additions to this

NAC meet¬

Vinson's

Mr.

the

to

no

"4.

the

causes

which

alone

due

countries

most

of

which

largely to higher wages.
"But

ex¬

indispensable to the develop¬

ment

the

cost

and

"3. Reliable currency and credit
are

deficient

ceed

has

legislation, restrictions
change control.

—We Maintain Active

208 SOUTH LA SALLE ST.

Bell

and

receives, for the cur¬
then de eriorates in spite of

all

ali

non¬

as

and

the

for

Corporation Common Stock
discussion

goods

which, as is known, would
be largely for Russia.

tion

such

causes,

Trading Market

National Gas & Electric

A

tendency is due to

long run no economy
if the State spends

than it

rency

19zi

rising

are

ultimately

prosper

more

important extent this in-

an

11a ionary

Chicago Stock Exchange

Write

Prices

can

but

severe

oi

to

observe

"2. In the

con¬

world.

money

There

a

repetition

coun¬

themselves

pro¬

gram to remember.

next

the American credits.

The

claim

there

in

war;

All

or

are

compelled
them, for they are
stronger than human will.

Many gov-

successful

were

trolling prices during the

means

etc., are again about to

hemselves

to

"To-day's outstanding monetary
ernmen

adjust

the

as

demand
facts and

laws, under penalty of first
relapsing into chaos only to find

following comment

problem is inflation.

laws, such

supply; and

must

the

these

be-

possible

consideration.

press,

It

by de¬

3516)

page

on

han-

tries

Cham¬

nations.

which

Gresham's Law, are
not decreed by man.

by

to

of

on

is based:

commen.

Economic

law

problems:

Among these

Export-Import Bank Loan Requests

nancing American exports, and in

Chicago

the

basic

"1.

a

e s

of the

"home truths"

ing

the

agreed

some

error.

of

principl

Burgess

tion

some

Albert Frank

digest

flow

program."

foregoing

York,

embodies

he representatives

Information

purpose

ceive

In

New

countries to communicate the pro¬

in
to expect
of private

or

The report then lists the
follow¬

Randolph
Burgess
of

members'

upon

is

W.

ready to begin operations and
call

success

funds, such as is nec¬
for a long term
develop¬

essary

ficit

•Wells-Gardner & Co., Com.

internadonal

ment

to

full

mvestment

of

report

whose

Poland, Brazil, Chile, Ethiopia reported to have mad? applications.
Question of increasing lending power of Bank by $1^4 billion under
•Woodall

The

tee,

therefore

for

stabilizing exchanges

"window
dressing." And the Fund is pre-*
paring for the day this Fall when
it will be able to announce that it
is

hope

an

ating expenses and for

ST., CHICAGO 4

York Office

Monetary

to

ture

commit-

Randolph 5686—CG 972
New

committee

Relations here.

policies

LA SALLE

is prema¬

its
o n

this

Chicago Board of Trade
231

he

lending it out, it may be as¬
sumed, so much as to meet oper¬

some

"hurry" its officers.

HICKS & PRICE

of

national

of

Ca-

things must be got moving, for
in September there will be a joint
meeting of the governors of the
Consolidated Gas

—
The inflation problem in most
countries
should be attributed to money causes,
according to a report submittprs
to the Council •>

posed par values of their curren¬

Meyer,

mille Gutt of Belgium, who holds
a
similar post in the Fund, are
men

CHICAGO 3

Harold

of

Vice-President, that de¬

as

Both

SECONDARY

followed

soon

Mr. Smith is in

For

UNDERWRITERS

FRANCE

WASHINGTON, D. C., June 26—Slowly but surely the Fund and
Bank are making progress.
For several weeks progress in the Bank
was retarded by the failure of
the<§>
—
Administration

CARTER H.CORBREY&C0.

PARIS,

is also the basis

as

World Bank will take under consideration

1922

Inflation Are Woildwide
;

Some progress reported

ization.

Established

Monetary Causes of

Washington observer reports executives of these institutions are
furnishing scanty information as what goes on in process of organ¬

Pfd.

&

Thursday, June 27, 1946

-

So. La

Salle

Telephone State 8711
New

York

Philadelphia

Street. Chicago 3

Teletype CG273
Pittsburgh

Minneapolis

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4502

[Volume 163

Grinrrell

Corporation

Panama Coca Cola—Circular

Memo¬

—

randum

Rose &

1946 — Brochure
the general situation
and several of the chains in vari¬
ous fields—Merrill Lynch, Pierce
Fenner & Beane, 70 Pine Street
New York 5, N. Y.
Fire & Casualty Insurance

Arkansas-Missouri
—Memorandum

Inc., 70 Pine Street, New York 5,
N.

Y.

to the News—Brochure

New York

comment and review contain¬

analyses of Philip Carey

Manufacturing Co.; Sargent & Co.;
The Upson Company; Lawrence
Portland Cement Co.; The Parker
Appliance Co.; Pettibone Mulliken
Corp.;
Armstrong
Rubber Co.;
Ohio Leather Co.; American Fur¬
niture Co.; Punta Alegre Sugar

Corporation

Haytiah

Corp.;

America;

Steel

Electric

Latrobe

of

Press

Manufacturing

of

Exploration;

Oil

Worsted;

Jersey

New

Rubber;

Mohawk

Corp.;

Wharton Iron & Steel.

and Taylor

Manufacturing

Barcalo

Co.

—

report—Ward & Co., 120

Bulletin

Broadway, New York 5, N. Y.

ciates

New

—

Richter

Manufacturing—Circu¬

Kinney-Coastal Oil Company—

Le

Roi

lative

Company
stock

common

as

purchase

Study

sound

a

—

—

—

Landreth

Company,

Building, St. Louis 2, Mo.

Western

Canadian

49 Wall

62

William

N.

Appreciation

H.

Suggestions—John

Street, New

York 5,

Leland

Electric

Company
—

N. Y.

Y.

Analysis

Utility

Public

Central

—

Brailsford & Co., 208
Chicago 4.

—

111.

Trading

Coast

in

New

York Stocks—Revised directory of

Cities Service Company—Study

stocks traded on Pacific Coast Ex¬

changes—Available on request—
Kaiser & Co., Russ Building, San
Francisco 4, Calif.

)f situation and
k

60

Co.,

York

lar—C.

E.

Paper Industry

—

in

commitments

on-

outlook—H. Hentz

Beaver

Willers

de

&

Co.,

120

paper

shares—Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.
Public Utility Prospects

—

&

Railroad

63

Peck,

New York 5, N. Y.

circulars

Wall

a summary of
Reorganization

Textiles, Inc. and

on

Hotel,

Commodore

Inc.

—

De¬

circular-^-Seligman, Lubetkin & Co.,
41 Broad Street,
New York 4, N. Y.

scriptive

Midland

Realization

Company

Northern

ITaupt

&

Public

Indiana

Dis¬
Consolidated

Gas

Utilities

rhe

Company, 300 Montgomery Street,
San Francisco 20, Calif.

and

Street, Chicago 4, 111.

SocketLarson &

American Forging and

Young,

L.

on

The Muter Co.

Co.—One

Darling

A.

com¬

four growth fields —
Analysis for dealers only—Moreland & Co., Penobscot Building,

Detroit

26, Mich.

Manufacturing

Dwight

Co.

—

Descriptive
analysis—du. Pont,
Homsey
Co.,
31
Milk
Street,

American Glass

Boston

—

memorandum

—Late

on

Corp.

a

Chi¬

Electric Boat Company—Detail¬
discussion

ed

Inc..

American

Delaware

—

Insulator

Corp

Statistical

30

of interesting issue

and

—Arnhold

4, 111.

Stock

Broad

S.

Write

Price

Averages—Current news bulletin

Edward

the New York Curb Exchange.

A. PurceiJ

New

York
TRADING MARKETS

St. Louis Public Service "A"
memorandum

Securities

Company

134

South

dum

Salle

"OLD"

—

First

—

Preferred & Common

of Chicago
Street, Chic¬

3, 111.

La

available

is

Chicago, Rock Island
and Pacific Ry.

memoran¬

a

Standard Milling Co.

on

Schenley Distillers Corporatloi
of

articles

they

hav»

kitchen & co.
135 South La Salle Street

running in the Chronicle-

write

Mark

to

Merit, in care o
Distillers Corporation

Schenley
Fifth

Avenue,

Scranton

Service

New York

Chicago 3, III.
Tel.

STAte

Fairman &

Spring

Co.

—

Brook

Water

Analysis and

sum¬

NATIONAL TERMINALS

Street, New York 5, N. Y.

Sheller Manufacturing Corp.
tecent
&

CORPORATION
—

Preferred

report—Mercier, McDowell
Buhl

Dolphyn,

troit

Building,

\

De¬

and Common Stocks

26, Mich.

J.

Inc.—Circular—Rich¬
& Co., 39

Buck

York

New

Circular

6, N. Y.

*

Descriptive Cir¬
& Co.
Broad Street, New York 4, N. Y

Upson

Co.

—

1

Also

detailed

circulars

on

Tennessee Products; Wellman En¬

Street, Chicago 4, 111.

ADAMS & CO.

gineering Co.; Shatterproof Glass
National Terminals Corporation
Circular

South

—

Adams

La Salle

TELETYPE

Realty-Sheraton Corp.

S.

Circular

Rayon—Circular

Bedford

Rol¬
Broadway,

attractive situation—F. H.
&

Inc.,

Co.,

Also

N. Y.
a

Company-

*

Hydraulic Press Mfg. Co.

*

Miller

Northwest Leather—Analysis

Kropp Forge Co.

Engineering—Memo¬

randum—Buckley Brothers, 142C
Walnut Street, Philadelphia 2, Pa
Also available are memoranda
on Eastern Corporation and West¬
ern

Company

Superior Tool & Die Co.

—

study—Floyd D. Ceri
Sterling Motors, Buda, Company, 120 South La Salle
Street, Chicago 3, 111.

Trailmobile Company

Analytical

*Detailed

Analysis Available

Upon

New York

Request

Comstock & Co.

Co.
dealers—
CC—Blair F.

Machine

for investment

for

Circular

United Transit Company

231

PRODUCTS

POWER

Dearborn 1501

Teletype CG 955

Macfadden Publications

5% Preferred

Gisholt Machine
BOUGHT

6% PFD.

POWER & LIGHT 4%

—

SOLD

—

QUOTED

All Wisconsin Issues

PFD.
Prospectus upon

request

I0LLEY, DAYTON & GERNON
||

DOYLE, O'CONNOR & CO.
INCORPORATED

a-CAIXYN^COMPANY
Incorporated

135 SOUTH LA

So. La Salle St.

Common

'■'Prospectus available upon request

SALLE STREET
Teletype: CG 1200

Member—Chicago Stock Exchange
So. La Salle St., Chicago 3, 111.
CG 262
Central 0780

105

Offices in Wisconsin
Eau Claire

Chicago

CHICAGO 3, ILLINOIS




Light Co.

&

—

Corrugating

Co.

Candy Company

Puget Sound Power

Light & Telephone.

York

Manufacturing

Nutrine

TRANSIT LINES

ELECTRIC

Telephone: Dearborn 6161

Inc.

Industries,

Howard

circular on

Descriptive
circular — Dayton
Haigney & Co., 75 Federal Street,
Boston 10, Mass.

Pollak.

61

Wellman

New England Lime

Aeronca Aircraft Corp.

Wiesenberger &
Broadway, New York 6,

change—Arthur
Co.,

0101

PHONE STATE

interesting opportuni¬

ty in shares which have just been
listed on the New York Stock Ex¬

Rayon.

analyses on

on

361

CG

STREET

ILLINOIS

4.

—

N. Y.

is

available

Delaware

Ill

CHICAGO

& Co., 231
U.

LA SALLE

SOUTH

231

Temple Coal.

Street, Chicago 4,

111.

on

Request

on

Broadway,

cular—Seligman, Lubekin

Co., 208 South La Salle

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

STEEL

ANGELES

PORTLAND

CG 28

Tele.

4950

1

mary—Graham, Parsons & Co., 14

ex¬

Conv.

-INDIANAPOLIS

Board

CHICAGO 4

York 4, N. Y.'

LOS

Chicago

Chicago

Exchanges,

Bleichroeder,

Street,

Grinding

Gear

Circular

BUCHANAN

mem¬

are

Trade, Chicago Mercantile Ex¬
change and associate members of

of 4, N. Y.

Broadway, New

Amott Baker Realty Bond

since

officer

Price

bers of the New York and

study

Peter Barken, 32

trust

&

stock

speculative
possibilities
from oil developments—Fred W.

Boston 9,

Co.,

Building,

Trade

of

&

Kneeland

50

Sterling,
Electric

&

Raymond & Co., 148 State Street,
Mass. Also available are

9, Mass.

indicating

possibilities
Board

Co.—Analytical
speculative

Hicks

offering combination of improving

ler

in

pany

Tornga, Grand Rapids National
Building, Grand Rapids 2,
Mich.

been

has

1928.

4, N. Y.

ard

Gas

New York 6,

Bank

forochure

Broadway,

Co.

New

Also available is a recent mem¬

orandum

cago

Corp.—CircularsSouth La Salle

Chicago

Paper—Sum¬

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

and

the

Service

Hicks & Price, 231

Circular—De

Co.,

—

Co., Ill
Broadway, New York 6, N. Y.
Also available is a
survey
of

Analysis—Ira

—

interesting issues—First California

&

Mr.,

Street.

Salle

La

joined

Utilities Company and

Midland

cellent

ment Guide" with notes on several

Power

&

Wall

utility income, together with

Developments.

cussion in current issue of "Invest¬

Abitibi

—

St.,

Also available

Paper.

National

available is

current

com¬

pany

South

the trust

fa¬

Brass—Study

outlook

350

New

Street,

specula¬

selected

for

portunities
tive

Discussion of
attractive

Stock

York

Master Tire & Rubber—Circular

—Adarris

4, N. Y.

Also

outlook which offers

with

Co., 10 Post Office Square,
9, Mass

—Brochure

Macfadden Publications—Circu¬

Corp.—

South La Salle Street,

Pacific

New

the

Ben¬

Street, Chicago 3, 111.

Central

&

Co., 14 Wall Street, New York 5,

with

Continental in
department 40 years ago

outlook—Ler-

of

been

are

—

Lewis

Boston

ago

Citizens Utilities.

on

Analytical memorandum

Lumber Co.

—Circular—Maher & Hulsebosch.

Street, New York 6, N. Y.

tion

N. Y.

effects of ICC decision

for

&

ner

situation

long-term

Detailed

Broadway, New York 5, N. Y.

increasing rates—Vilas & Hickey.

Investing

interesting

vorable

specu¬

Colon>

First

Increased Freight Rates—Memo¬
on

of Chicago, and his associa¬

pany

231

nett, Spanier & Co., 105 South La

Scherck,

Com¬

Trust

and

oi

Corporation', 70 Pine Street. Nev
York 5„ N. Y. Special letter avail¬
able

Bank

of

Spinning Asso¬

analysis

dis¬

Smith

Analysis—James M. Toolan & Co.,
37 Wall Street, New York 5, N. Y

Salle

Fine

Berkshire

Street

Illinois

Continental

the

Exchange firm of Hicks & Price,

Also

Ray-O-Vac

randum

Highlights of Wall

Ohio.

Hartford Empire; Lanova

eral Tin;

of

tions.

lar—Gottron, Russell & Co., Union
Commerce Building, Cleveland 14,

Gen¬

L. Douglas Shoe Co.;

W.

on

ficer

National

Ralston Steel Car Co.—Circular

Justrite

memoranda

are

5.

CHICAGO, June 25—Announce¬
made today of the retire¬
ment of Harold P. Smith, trust of¬
ment is

cussing several interesting situa¬

Co.

Broadway,

Co., 120
5, N. Y.

available

Also

Company; Fori
Pitt
Bridge Works and Welch
Grape Juice Co.—Strauss Bros., 32
Broadway, New York 4, N. Y.

Co.;

&

40

Also available is the June issue

Revere Copper &

—Ward

An¬

—

N. Y.

on

Stocks

With Hicks & Price

N. Y;

alysis — J. F. Reilly & Co.,
Exchange Place, New York

analysis—Comstock
Co., 231 South La Salle Street,
Chicago 4, 111. Also a detailed
malysis on Miller Manufacturing

Aspinook Corporation—Circular

ing brief

Salle

Harold P. Smith Now

Troster, 74 Trinity Place

Purolator Products, Inc.

Co.,
120
Street, Chicago

Co.—Detailed

Stock Guide

—

Geared

La

oi

Hoit

—

&

111.
Hydraulic

Power Corp.

containing quotations on unlisted
public utility preferred and com¬
mon stocks—G.
A. Saxton & Co.,

N. Y.

of

i,

in the current is-

of the Preferred

me

Earnings comparison—cir¬
cular on request—Laird, Bissell &
Meeds, 120 Broadway, New York 5,
1945

3outh

Co.

Instrument

Analysis—Caswell

—Amott, Baker & Co., Inc., 150
Broadway, New York 7, N. Y.

Stores

Chain

Hammond

that the firms mentioned will be pleased

analyzing

possibilities

New York 6,

send interested parties the following literature:

to

interesting

52

Recommendations and Literature
It is understood

indicating interesting out¬
J. Young
& Co., Inc.,
Wall Street, New York 5,N. Y

look—F.

Dealer-Broker Investment

3479

New York

Boston

Milwaukee

Minneapolis

-

Fond du Lac

Madison

-

-

La Crosse

Wausau

THE COMMERCIAL & FINANCIAL CHRONICLE

3480

t

"ly

-

•

I'S-

"5

»*

i,

*,

*

.

,

*}

'

1

1

offering of Ohio Edison
followed

sometime

with

year

Ohio

by Cities Service
& Light Co.

(controlled by Commonwealth & South¬

Edison Company

Ohio

Monday of this week received bids for 204,153 shares of
additional common stock, bringing the total amount to an even 2,000,000 shares. One object of the financing was to establish a market price
for the entire issue which could be used in evaluating it if the parent
on

company
its

own

the stock was is

however,

bly,

additions

for

sued

watt

better¬

and

including a 60,000 kilo¬
generating installa¬

ments,

steam

tion.

substantial

gains of this kind because of the
fear that much of the advantage

have

be

to

given

away

in

to

ifornia,
Illinois
and
Indiana.
However, Ohio Edison's rates are
already
very
low.
In
the
12

SEC
approval, the
stock may be reoffered at around
41V*. Since the management has
subject

to

indicated its intention to continue

dividends

this

(during

year

at

annual rate of $2,
this retail price would represent
least)

the

at

yield of about 4.86%. This com¬

with

pares

the

yield of over 5.00%

a

offering of Dayton

recent

Light and about 4.50%
Columbus & Southern Ohio

Power

&

however, has
advanced in price and Columbus
has declined, so that at the mo¬
Electric.

Dayton,

ment the

ruling yield on new of¬

would

and

Ohio

share

are

now

considerably

excess

of the

amounts

recent

years,

due

substantial
under the

law.

new

earned

obtained

Earnings this

estimated at close to $3

are

share

Ohio

Edison's

rived

under

cents

the

revenues

such

this

compared

amount

about 55%
under

the

it

is

estimated

new

tax

law

tuting the present 38%
for

the

old

that

could have been saved

84V2%).

(substi¬
tax rate

The saving

would

plus

approximate
$3,150,000,
about $200,000 decrease in

regular

income

taxes,

equivalent to $2.91
the

new

or

per

a

total

share

common.

on

northeastern section of Ohio,
a separate area ad¬

the

together with

have

Directors declared

D. F. McNamara With

cers

Albert Frank

Chicago

road

F.

McNamara,

for

the

past eight years on the reportorial
staff of "The Wall Street Jour¬

nal," has become associated with

other sales since
should

the

new

automatically

money

increase

both the rate "base and the future

earning

power.

It is rather peculiar that

a

sub¬

lowing

recent

P. &

and

L.

Ohio

sales

of

Columbus

Electric,

&

the

Fol¬

Dayton
South¬

present

Plate).

The

offered at prices to yield. 1 %

1.70%.

Proceeds will be used

to

finance

purchase of 500 fifty-

ton all steel box

cars

and 100

sev¬

enty-ton all-steel hopper cars.
A.

*

lier

behind

him, has
appointed president of Ports¬

mouth Steel

this

Corp., organized

month

Cyrus

by

Le Roi Co. of

facturers

Co.

corporation

new

to

acquire

the

was

Ports¬

mouth, Ohio, Works of Wheel¬
ing Steel Corp., and on June 25
offered 1,025,000 common shares
Daniel

F.

McNamara

to

Albert Frank-Guenther

Law, Inc.,
131 Cedar Street, New York
City,
advertising agency. Except for
U. S. Army service in World War
II, Mr. McNamara has been iden¬
with

the

financial

com¬

munity for the past twenty

years.

the

public

at

$10

share.

a

Otis & Co. heads the underwrit¬

the

with Jones & Laughlin in
1919, leaves the post of assistant
manager of the Youngstown dis¬
trict for Republic Steel
Corp.
career

joined

& Tube

in

Kenneth W.

—

B. « Binford

have become associated with Ditt-

& Co., Construction

mar

Mr.

Scully

research

Building.
formerly of the

was

statistical

and

depart¬

ment of Kalman & Co. of St. Paul
and

Minneapolis; he

separated

from

was

'the

recently

Army

Air

dent

of

He

the

was

open

superinten¬
hearths
at

Youngstown's Brier Hill works in
1940
of

when

the

he

became

chairman

hearth committee of

open

Republic Steel in Cleveland.

Wisconsin

40,000

stated

will

concern

tial"

portion

Frazer

for

the

Portsmouth

Motors Corp.

a

of

Banking
with

bond

depart¬

Minnesota

the

State

Division.
Mr.
Binford
entering the AAF was

to

Firemen's

Newark,
the

the

in

year

N.

J.

Insurance

He

Corp. for the Kaiser and
and to

cars

also

300,000

Portsmouth

Steel

of

be

in

Frazer had

issued,

200.000

of

that

which

agreed

shares

an

shares

common

of
will

Kaiser-

to

and

Common

to

Distributors of Municipal

Philip Carey Com. & Pfd.

(Incorporated)

Paine, Webber, Jackson
ESTABLISHED

&

Curtis

New York

Chicago

Cincinnati

Martin

Benguet Consolidated Mines

....

.

..

York

Exchanges—N.

Tel. Main 4884

in

these

$1,500,000
synthetic

a

where

buildings

chemical

plant
will be

resins

and that the plant
capacity of 11,000,000 pounds annually.
The resins
a

will be used for
production of
heels, transparent garden hose,
surgeon's gloves and many other
items, he declared.

Ball, Burge & Kraus of Cleve¬
land, and Stoetzer, Faulkner &
Co. of Detroit, will head the un¬

derwriting group that will offer
shares of $1 par value
common
stock
and
22,500

60,000

shares

of

$10

cumulative

Y.

value

par

convertible

5%
pre¬

ferred stock of Prestole Corp. of
to

Proceeds
the

net

Hiram

S.

nounced

$4.50
with

that
on

of

President
Corp.;

the

an¬

will

company

July 8 all outstanding

preferred
a

$477,000.

*

*

Rivitz,
Rayon

Industrial

expected

are

company
*

Series A,

shares,

value of $9,750,000, at

par

$104 and accrued dividends.
❖

*

*

Otis & Co. made

130,000

Cincinnati
Curb

Assoc.

a

public offer¬

shares of common

of

L'Aiglon Apparel, Inc.,
Philadelphia, at $6.50 a share.
the

total,

company

financing
50,000

shares

from

and

purchased
holders.

share¬

Proceeds will be used
of

additional

plant.

for

and

plant

The

for pur¬

and

machinery

new

acquiring an

site

company

start operations

shares
by

80,000

new

were

for a new
expects to

shortly in Hagers-

town, Md.

Tele. CI 68 & 274

Approval

35,300

Wellman

EBBgaaB53gSagS—

Circular

of

*

*

plan

a

to

change

capital stock of

shares of

Engineering

Company

Hallicrafters
Munson Lines "C" Pfd.

and

Terminal Building

Toledo

Chicago, So. Shore & So. Bend Ry.
Justrite

aircraft

CINCINNATI 2

GOnRONiP°klKSEIIA
—M.

Co.,

Cleveland prior

stated

♦

Denver

Columbus

New

Dixie

CLEVELAND

1879

W. D. Gradison & Co.
Stock

Established; 1899

in

will represent initial construction

chase

Red Top Brew

Members

*

buildings on a 10-acre site near
Painesville, just east of Cleveland.

equipment

OTIS & CO.

to

are

moving to Baltimore, said plans

the

Whitaker Paper
Land Trust Certificates

Common

*

Martin

represented

Underwriters and

Corporate Securities

Plans

have been completed for the con¬
struction
of
several
industrial

Of

Puget Sound Power & Light

L.

maker located

of

Sport Products

and

par

convertible

stock.

*

Glenn

Graham-

Gruen Watch, Com.

Common

414% $50

purchase

Southwestern Public Service

Texas Public Service

of

land plant, the company said.

ing of

Common

Milwau¬

half will be used to expand the
plant and purchase of a Cleve¬

stock

Southwestern Electric Service

of

cumulative

redeem

additional

Co.

Dallas and Houston offices.

Graham-Paige

announced

affiliates

and

proposed
week.

expend over $1,625,000 this year
for expansion of which nearly

supply a "substan¬
of steel to Kaiser-

Forces after 51 months of service,
with the rank of captain. He was

Frazer

Co.

&

shares

value

Toledo.

Eaton

a

kee, will lead the underwriting
group which will offer publicly

an

hearth work.

Joseph

and

from

offering filed last

Youngstown

all of the

DALLAS, TEX.

and

1923

and, after
apprenticeship in
company's operating de¬
partments,
specialized
in
open

completing

Scully

proceeds

stock

would have

Schwartz, who started his steel

Schwartz

Diitmar in Dallas

manu¬

gas

manufactured

ing group.

Sheet

Milwaukee,

industrial

gasoline engines, air compressors,
mowing
machines
and
enginegenerator sets, plans to buy a new
plant in Cleveland with part of

Eaton,

industrialist,
and
a
associates, including Wil¬
R. Daley, President of Otis

The

of

ear¬

group of

formed

put at $12,000,000.

was

Cleveland

&

offi¬
___

preferred

*

Schwartz, who at 45

industry

been

new

Paige 100,000 shares at the publie offering price.
The purchase
price of the Portsmouth Works

notes

has 27 years of experience in the

prior

1946.

New

Rail¬

to

steel

ing

the market in

of

*

ment

on

con-

& St. Louis

(Nickel

Elmer

of the utility indus¬
try in the State of Ohio is com¬

stantial part

certificates

the

on

George E. Merrifield, said all

Stanley ®

elected assistant

was

trust

were

Daniel

tified

ing is that it represents "new
money" rather than a sale of
stock by the parent company, as
is usually the case. Along with

re-elected and

were

liam

An important point in connec¬

share
share.

York,

run).

tion with the present stock offer¬

a
a

Vice-President and Treasurer

Buchan

12 y2

cents

ment

many

equity.

dividend of

a

which doubled the old rate of 25 cents

common,

Co. of

small

stock

four-for-one

Hayden, Miller &
Cleveland, offered publicly
$1,780,000 of 1V2% serial equip¬

company.

of

very

ern

number

plant

cost

of

Higbee Co., large Cleveland department
store
split of common shares,
increasing the
of outstanding shares to 566,054.
the

which included

Ohio Edison's consolidated util¬

ity

Stockholders

approved

jacent to Springfield in the west¬
troller.
Directors
voted a
preern part of the State. It also con¬
ferred dividend of $1.25 a share,
trols Pennsylvania Power Com¬
payable Aug. 1 while the common
pany
which serves New Castle,
disbursement is payable July 15.
Sharon, etc., in a Pennsylvania
*
*
*
section
closely
adjoining
the
A
Harris, Hall & Co. group,
Youngstown area of the parent

(most of

with
$1.24
actual in 1945 and about $2.91 on
the new tax basis (all on the in¬
creased number of shares).
The
the recent issue of additional stock
latter figure is obtained as fol¬
lows:
Excess
profits
taxes
in by California Electric Power, this
represents
virtually
the
first
1945 were $2,328,637, to
which
equity financing by utility com¬
may be added accelerated amor¬
panies for capital improvements
tization
(equivalent to tax sav¬
of any size which has occurred
ings) of $1,360,219 and other spe¬
in many years. In this respect the
cial
charge-offs of $2,027,664—
sale presents an advantage over
making a total of $5,716,520.
Of
a

the

serves

de¬

are

rates

schedules

rate

years to

—

preferred stock and 23% common

largely to the
relief

tax

far below
the U. S. average; and the aver¬
age usage was 1,674 kwh., above
the average for the entire coun¬
try. Moreover, rates within mu-*
nicipalities are largely fixed by
contract for periods of three to
ten years, and about one-third of
only 2.79

was

in

well above the average
yield for seasoned issues.
Edison's
earnings
per

course,
current

average

1946 the
residential rate per kwh.

in

appear

4.75%

months ended April 30,

is carried at original
$120,690,530 except for a
item of intangibles,
and plant acquisition adjustments
amounting to $14,912,226 (which
amount is being amortized). The
depreciation reserve is $27,414,504 or about 23% of original cost.
Capital ratios on a pro forma
basis are about 59%
debt, 18%

investment
calibre
to
lie
between
5.00%—which is, of

of

ferings

year

to
earnings

customary

rate cuts—as has occurred in Cal¬

ranged from $35.43 a
the successful bid of

$39.25
made
by
the
Morgan
Stanley group. At this writing the
exact retail
price has not been
named
but it is
expected that,

on

become

"discount"

may

share

on

has

It

bids

The

a

of its holdings in exchange for

should decide to offer some
preferred stock. Ostensi-^-

Power

impor¬
tant cities of Akron, Youngstown
and
Springfield and covers an
important industrialized area in

Ohio Edison New Common Stock
ern)

Edison

1946

Ohio Brevities

this

Public

Service
Ohio

Thursday, June 27,

11

be

may

later

of

sale

►"> I," f v X V-f-

,

on

Request

Manufacturing

OHIO
SECURITIES

Common

WM. J. MERICKA & CO.

Gilbert J. Postley

INCORPORATED

&

Co.

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




Circular
1582

Union

on

Request

Commerce Bldg.

Cleveland

14,

Ohio

Union Commerce

Building

CLEVELAND

14

Members Cleveland Stock Exchange

Teletype CV 594
29 BROADWAY

NEW YORK 6

Field, Richards & Co.
Union Com. Bldg.
CLEVELAND

Tele. CV 174

.

Union Cent.

Bldg.

CINCINNATI
Tele. CI ISO

(•

/>

Number 4502

Volume 163

$100 par va^lue into

353,000 shares

voted by stock¬
of Union Bank of Com¬

of $10

was

par,

holders

President John K. Thomp¬
son said the 10-for-l exchange of
shares would be effective soon.

merce.

*

*

*

Jack & Heintz Precision Indus¬

announced a change in
officers, in which William S. Jack

tries, Inc.

f 'V '

)m\';

O*

on National Association of Purchasing Agents headed
by George E. Price, Jr., reports an upward swing, with production
still low and materials short.
Says prices are firm, and looks for

States, The First Boston Corp. and Mellon Securities Corp., will be
merged July 31 subject to approval on July 29 by two-thirds or more
of the stockholders of both
corporations.

resistance,

Corp., meeting in New York, and
Mellon Securities Corp. meeting in
Pittsburgh, Tuesday

up

dent at

A report

early

meeting held
Jack
became

last

Committee,

comprising

composite opinion

the

its

of

members,

a

whose

month

E.

Price,

Purcha

pany's executive committee, and
Byron C. Foy, director of Chrysler
Corp.,
chosen board
chairman.

General Business Conditions

Chair¬

is George

man

President, Milner
made chairman of the com¬

was

of the National Association of Purchasing Agents' Busi¬

Survey

ness

industrialist, Presi¬

March meeting but a;

a

confused and uncertain."

made

was

board chairman and B. C. Milner,

Jr., New York

Agent

A

Jr.,

s

i

n

of

swing
in

noted

g

the

business is
compared to
settlement of

better

to

repor.s

month

a

as

The

ago.

major strikes has already had its
effect, in a turn toward better
business. New business appears to

Goodyear Tire

Jack & Heintz gained considerable

and

preminence during the war with
its liberal employe policies.

Co., and pub¬

be coming in volume; production,

lished

however, is still low.

*

*

Rubber

in

the

Bulletin of the

*

Association

Pittsburgh
Consolidated
Coal
has acquired all of the Ohio
coal mining properties of Hanna
Coal Co. from the M. A. Hanna Co.
Co.

Co. said the con¬

M. A. Hanna

sideration for the transfer of the

properties

issuance of
by Pitts¬
which stock

the

was

325,000 shares of stock

Consolidated

burgh

Hanna will hold for investment.
"This

concentrates

move

M.

John

Pope

R.

Macomber

The

afternoon, approved terms of the
merger

of Mellon Securities Cor¬

poration with and into The First
Boston

Corporation, bringing into

existence
with the
—over

a

securities organization

largest amount of capital

$25,000,000—of

any

in the

Harry M. Addinsell

proposed merger

was

nounced in New York by

an¬

John R.

and in Pittsburgh by
Denton, President of

Frank

R.

Mellon

Securities

(Continued

investment banking business.

is

a

but

obstacle

improved

The

was

more

all

uncer¬

of

in

increased

Business

The

text of the report

goods

demand for
is bound to
production—

barring further major strikes.

tain."

3519)

year, hoping
material situ¬

great pent-up

types

result

confused and

Corp.

on page

the

be

this

earlier

an

to

the moment.
scheduling va¬

ation.
George E. Price, Jr.

that at present
"business

concerns are

cations

points out

never

at

•4

if
II

Inability to

seems

for

"swing to bet¬
ter
business,"

Macomber, Chairman of the Board
of Directors of The First Boston
corporation,

major
Many

26, states

there

materials

follows:

on

the West Coast

(Continued

on page

3515)

con-

ll

..

I

l

mining

coal

bituminous

the

in

June
Allan

secure

of

Consolidated all

the Pittsburgh

!i

a
ill

upward trend until competition and production, plus buyers'
cause some stabilization.
Sees little likelihood of builtinventories until late in 1947; and holds "business was never

an

Directors of The First Boston
of

w
M:

Sees Better Business Ahead

+Twmu0f r,the leadin§ investment banking firms in the United

directors

3481

Committee

more

Jack

said

Officers

r

/•

Merger of Mellon Securities Corp. Info
First Boston Corp. Voted by Directors

named President.

was

•

•

THE COMMERCIAL & FINANCIAL CHRONICLE

-i

operations in which the Hanna

the

stated. "The operation

This announcement is not

properties will continue

of these
in the

interested,"

is,

company

company

Co., without change of person¬
nel."
*

*

Mervin

an

ojjer oj securities Jor sale

or a

solicitation oj an ojjer to buy securities.

of the Hanna Coal

name

B.

June 26, 1946

New Issues

*

executive

France,

vice-president of the Society for

Wisconsin Electric Power

Savings bank, has been elected a
director

Consolidated

of

Grocers

Corp., filling a vacancy resulting
from
the
death
last
April of

Company

Colonel A. A. Sprague.

$50,000,000 First Mortgage Bonds, 2%% Series due 1976

Before coming to the Society for

Savings 12 years ago, France was

*

'■

officer of the Union Trust Co.

an

of Pittsburgh.

260,060 Shares Preferred Stock,

Skall, Joseph, Miller
N. Y.

(Under present Wisconsin statutes the Company is required to with¬
paid a tax equal to 3% thereof.)

Exchange Firm

of

New

a

hold from dividends declared and

OHIO—Acquisi¬

CLEVELAND,
tion

York

Stock

Ex¬

*The Preferred Stock,

by

Joseph,

Skall,

Miller

&

3.60% Series, is being offered by the Company

scription by holders of its outstanding Common Stock and in
outstanding Preferred Stock, 4%% Series.

change seat and the admission of
three new partners are announced
Commerce

Building.

will

firm

Prices;

ship is held by Harold M. Masius
of New York, who enters the firm

101.56% for the Bonds

general partner. He will rep¬
Skall, Joseph, Miller & Co.
floor
of
the
exchange,
where he has acted as a specialist

as a

$101

resent

the

on

for sub¬

exchange for its

Co.,

The
begin its New York
Stock Exchange operations July 1.
The Stock Exchange member¬

Union

3.60% Series*

(Entitled to Cumulative Dividends)

per

share for the Preferred Stock

plus accrued interest or
for Wisconsin

dividends (less 3% of such dividends for
privilege

adjustment

dividend tax) from June 1, 1946

for several years.

firm

the

Entering

as

special

two Clevelanders,
Sidney N. Amster and Robert
Hays Gries. Mr. Amster is Treas¬
urer
of the Lane Drug Co. of
Toledo and was formerly Presi¬
dent of the Cummer Products Co.
partners

are

of

The

Store
war

in

where

of

years,

the
he

fill

Dillon, Read & Co. Inc.

Co. Depart¬
Cleveland for a

resigning as
Manager to serve during the

number

be obtained Jrom such oj the undersigned (who are among the under¬
as mag Icgallg ojjer these securities under applicable securities laws.

prospectus)

May

in

Store

ment

writers named in the

Mr. Gries was an ex¬

of Bedford.
ecutive

Copies oj the prospectus map

Air Forces,
commissioned a

Army

was

Goldman, Sachs & Go.

The First Boston Corporation

Blyth & Co., Inc.

Captain.

of Skall, Joseph,
G. Skall,
member and former President of
the
Cleveland
Stock Exchange;
Herman B. Joseph, and Lester I.

I
I J

The Wisconsin Company

Union Securities Corporation

Other partners

Ripley & Co.

Incorporated

Stone & Webster Securities Corporation

Smith, Barney & Co.

Kidder, Peabody & Co.

Harriman

Miller & Co. are David

formerly Executives of
Co., Inc.
The firm's
New
York
correspondent
for
Stock Exchange business will be
Kalb, Voorhis & Co., member
firm headed by John Kalb, widely
Miller,
Joseph

&

Coffin & Burr

Harris, Hall & Company

Incorporated

Lee

Higginson Corporation

A. C.

Allyn and Company

Laurence M. Marks & Co.

Wei! Adds Ullman to Staff

Dean Witter & Co.

NEW

ORLEANS, LA.—Weil &

Richards

Building

Arcade,

have added J. Edmund Ullman to
their staff.




F. S. Moseley & Co.
Central Republic Company
(Incorporated)

Incorporated

known securities analyst.

Co.,

Hemphill, Noyes & Co.

W. C. Langley & Co.

Spencer Trask & Co.

Tucker, Anthony & Co.

(Incorporated)

The Milwaukee Company

G.H.Walker & Co.

Equitable Securities Corporation

Hornblower & Weeks

Paine, Webber, Jackson & Curtis R. W. Pressprich & Co.

y

I

Putnam & Co. Chas. W.Scranton&Co.

i<

I

Whiting, Weeks & Stubbs

THE COMMERCIAL & FINANCIAL CHRONICLE

3482

Thursday, June

27, 1946

\

Winchell

Predicts House

Scooped!

Tn his broadcast of last Sun¬

day

night,

formed

Jones Estate Common
With

earnings

industry

tined

to

labor

of office

disputes.

column

the
stock

common

of the

Building

1931, and the land

which this

on

structure has been erected located
at

southeast

the

Street

York
the

is

City.

most

tions
in

principal

58th

in New

section, one *of
desirable loca¬

building of this type,

a

the

hand to

The

highly

for

of

corner

Fifth Avenue

and

heart

of

shopping

New
area

exclusive

the

York's
near

hotels

at

and

preferred
second

the
in
was

accrued

500,000 in First Leasehold Mort¬

April

1946.

gage Bonds. In the

the

in 1933 this issue

was

cut to

$450,-

demands it will seriously af¬

N.

fect

exchange

the

paid

interest

the property,

of

many

ing

On

refunded

the

duction in fixed charges.

then

drafted

nual

4%

and

requires

amortization

an¬

of

payments

Sidney Weinberg Given
Honorary Degree

of:

Mr.

First 4%

Mortgage

Sidney J. Weinberg, Senior
Goldman, Sachs & Co.,
Investment Bankers, received the
Partner of

$4,125,000

$4 Preferred Stock—
$1

value

par

Common

$1

value

of

122,511

will

surplus

71

cents,

price

the

own

ended

year

Jan.

earned

an

deemed).
SOLD

$1.55

per

before

QUOTED

This

was

share of

On June 21,

been

common

and

cents

nual

Bell

a

Sidney J. Weinberg

honorary
Laws at

an¬

value

stock.

mon

Dlgby 4-4950

duction

Teletype NY 1-953

yearly

of

value of

a

on

degree

the

addition

bution

during the

first

amortization
and

stock

an

by

of

payments

annual

Mr.

by
of

the

the

Doctor

and

Vice

Mr. Wein¬

war.

Chairman
Board

of

from

the
Oct.

Aug. 1945.

Weinberg

National

Dairy,

a

B.

director

F.

sinking fund

of

Goodrich,

Sears, Roebuck, General

preferred

at

Senate

our

wants.

at

the

were

is

barelv

Senate

rider

differs

conference

a

"Silver

urged

Bloc"

that

in

the

view

increase

in

of

Electric

and General Foods.

an

the

price

Hayden

was

Ariz.) who are ex¬
thq, fight, with

lead

Gurney

Chan

Senators

(R.,

iard

Tydings

(D.,

Md.), Wallace

(R., Me.), and Josiah W.
Bailey (D., N. C.).
The House conferees have as yet

silver

selected.

not been

making

unfair profit from its monopoly

purchases of the metal, while the
Senators

from

New

England

Sweney Cartwright Adds

and

other sections where silverware is

Daniel

manufactured

H.
associated
Sweney, Cartright & Co.,
Huntington Bank Building.
He
was
formerly
with
Stranahan,

used

or

purposes,

for

opposed to
price rise.
The

Taylor

were

substantial

such

mists

as

Committee

on

the

has

become

with

also opposed by vari¬

groups,

Taylor to Staff

COLUMBUS, OHIO—Daniel

indus¬

Econo¬

Harris & Co.

Monetary

51 East 42nd St. 3/56
Park

Ave.

Descriptive Circular

3/46

on

request

INTERESTING

L J. GOLDWATER & CO
Members New York Security Dealers
Assn.

39

OPPORTUNITY

REAL

ESTATE

Incorporated
Members New

New York 6, N. Y.
HAnover 2-8970

IN

Seligman, Lubetkin & Co.

Broadway
Teletype NY 1-1203

41

Broad

York

Security Dealers Association

Street, New York

4

U. S.

HAnover 2-2100

Realty

listed

on

an

—

Sheraton Corp. shares have just been

the New York Stock

Exchange. They offer

interesting opportunity to benefit from

a

continued

rise in real estate values.

Firm

OFFERINGS WANTED

Trading Markets:

Hotel Bonds with Stock

California & New York

or

This

Stock alone

Beacon Hotel 2-4, 1958

Sherneth Corp. 5%, 1956

Hotel Lexington Units

The Madison 3, 1957

National Hotel of Cuba 6, 1959

Real Estate Issues

Savoy Plaza 3, 1956

Governor Clinton Hotel 2, 1952

newly merged

155

Montgomery St., San Francisco

Tele. SF 61 & 62




has total assets exceed¬

870—7th Ave. 4 y2, 1957

and

prominent office buildings in Boston, New York

and other

metropolitan cities.
Circular available

Amott, Baker & Co.
Incorporated

4

EXbrook 8515

company

ing $40,000,000. Its property includes 22 leading hotels

Eastern Ambassador Hotels Units

J. S. Strauss & Co.

150
Tel.

Broadway
BArclay 7-4880

"

1

ARTHUR
Members

of

upon

WIESENBERGER &

New York Stock Exchange

61

request

BROADWAY

«

NEW

•

CO.

New York Curb Exchange

\QZK

6

N

Y.

New York 7, N. Y.
TELETYPE NY.

Teletype NY

1-588

S.

H. White

have

ous

Commodore Hotel, Inc.

(D.,
to

Dak.), and Clyde M. Reed (R.,
Kan.), supporting them; Sen. Ken¬
neth McKellar
(D., Tenn.), Mil-

world¬

of

the bill are Senators
(D., Nev.) and Carl

on

Pat McCarran

15

The

Senate

*

Among the Senate conferees ap¬

from

committee.
in

of

as

pointed

re¬

the floor of the Sen¬

on

the

indicated in previous is¬
of the "Chronicle."

sues

value.

it

vote

for

provides

sale
~

which

Policy,

$1.29,

monetary

of

June

measure was

2

a

biggest

90.3c Silver

90.3 9

until

thereafter

bullion, the Treasury

is

Bldg. 2/45

500 Fifth Ave. 4-6 Vz /49

the

to

the House measure, which retains
the present price of 71.11 cents, so
the matter is now to be settled by

any

Chanin Bldg. 1/45

provision

increase

time when inflation is

Department,

ounce

full

time

The

of

trial

Chanin

Senate

an

which

pected

wide

re¬

mortgage

was

1941 to

com¬

the

of

Conn., for his outstanding contri¬

of

approxi¬

each share of

In

$100,000

the repetition of

as

the

for

crease

ate.

Trinity College, Hartford,

War Production

place

1948,

members

$1.08

berg

mately $23

is

in
the
number of silver certificates to be
issued as a result of the price in¬

at

statutory

silver

ported that there

would

Members New York Stock Exchange
Members New York Curb Exchange
<40 EXCHANGE PL., N .Y.

income

troy

per

present

At

$10,000,000 placed on this prop¬
erty would not be excessive. This

SHASKAN & CO.

the

of silver in

the Senate approved the rider to the Appropriations

Treasury

Treasury

its

excellently lo¬
buildings are being

rental

the

30,

re¬

stock

appraised at nine times their

for

surplus

modern,

office

pro¬

domestic threat."

Bill

equivalent to

depreciation

Since

own

relieve

rider.

31,

$194,-

after depreciation.

cated

of their

Treasury Department Appropriations
Bill, which would raise silver price from 71.11c to 90.3c per
troy ounce until June 30, 1948, and thereafter to $1.29, its
monetary value.

interest expense

the bonds have

as

its

to

consumers

bad

as

tax

calling

Senate Approves

the

occur

BOUGHT

present

on

hoarded

some

upon

provisions

"Just
the

for

Agrees to rider attached

junior mortgage bonds of
$18,619 (this charge will no longer
on

the

premium

have

large number of important in¬

Appropria¬

silver

a

This would be sheer inflation at

16,773

charge of depreciation

$83,753 and

House

Treasury

180,000 shs.

building
a

iniquitous

newly mined domestic
silver, as against the 90 V2 cents
and $1.29 provisions of the Senate

preferred
stock
and
of
the
common

the

899 after
of

the

of

fash¬
deliv¬

dustries.

Committee many weeks ago.
That House language calls for sale

shares

For

1946,

in

put
here

bery and insist
posed

restoring the lan¬
rider as originally

on

the

west

The House will, I earnestly
reject this legislative rob¬

a

stock.

SECURITIES

trust,

,distress of

of

wild

Silver

get a free ride at public
by the repetition of this

correspondent:
"The House will fight the Sen¬
ate silver compromise rider to the
Treasury Appropriation Bill and
insist

floor

is

'Stand

us,

single

16,968 shs.

Squibb interests

shares

to

pact.

"Chronicle"

guage

a

the

The

wild

Men

have

expense

Emanuel Celler

to

Stock—

par

The

I

names

fol- "

tion

'

.

at

would

silver.

exclusive

the

telling

speculation.

who

the

gave

true

particularly

former

(Dem.~:

Y.),

outrage.

in

"Two

Emanuel

$150,000, will have the effect
of increasing this equity per com¬
mon
share, as well as providing
additional earnings for the com¬
mon stock of
$10,000 in 1947, $20,000 in 1948, etc. through the re¬

The
present
capitalization of
the Squibb property now consists

REAL ESTATE

of

York."

of

$94,271
on
Nov. 1, 1944

$100,000.

this mortgage being

earnings
New

tive

the

statement

with

off

a
loan of $4,250,000
Metropolitan Life Insur¬
Company.
This loan bears

ance

the

hotels in

second

Should

a

this

are

Not

House

features of the Senate silver
draft
are the
repetition of the special
silver transaction pact and the
in¬
crease
in silver certificates.
The

ac-

Representa¬

$100

per

week.

to

The

the

silver

er!'

/

cording to

of

Celler

with

bought by placing a
first mortgage of $4,365,000 against
was

reduction

a

Unions be successful in /their

from the

The fee

plus

ion

how

that

uttered from

it.

Senators

House *

of

and Senate

on

outstanding $4,265,000 first mort¬
gage,

tee

was

about

are

reduced to $318,810

company

000, the bondholders, at this time,
receiving one share of common
stock for each $10 of new bonds.

very

Unions

30% increase in

bondholders

subsequently
1,

expire

the

is

confer¬

40-hour

interest

reorganization

a

unchallenged.

against

commit-

ence

to

this

finance

$4,-

and

joint

thoroughly.

passed

word

"

taken up by a

offered

shares

mortgage

was

very

understand

House

rider

the

when

cannot

upper

propriation

was

The original loan underwritten
by S. W. Straus & Co. in 1929 to

construction

into

"I

the
ap¬

working hours from 47

1V2

was

to

Treasury

question

situation of their

contracts

wages

check

to

the silver price measure adopted Jan. 21
by the

over

a

as

rider

cumulative

consummated,

and

Labor

plan of recapi¬

After

bonds.

investments

second mort¬

Senate

4%

mortgage
of

as

Senate Silver Bill

on

WASHINGTON, D. C., June 26—There is indication there will
be

bitter contest

a

bill

asking for

stock

basis

discussed

was

shortly

tral Park

the

subject

$1,000,000 of the
gage bonds.

a

in

not

was

Thursday, June 20,

the earning

residential apartments of the Cen¬
area.

of

in lien to the underlying
mortgage of $635,000. In addition,
the Squibb interests subscribed to

In 1945, under
talization, new

This

might do well

junior

new

des¬

"Speculators in hotel bonds

32-story office, store, and showroom
in<S>
•

completed

shortly

embroiled

follows:

Jones

Estate Corporation, owner of the

Squibb

the

of course, to readers of
"Chronicle," for in this

the

properties.
is the

is

become

in¬

that

news,

quite markedly from real estate bonds to the stock equity in these
attractive situation

Winchell

audience

hotel

Stock—(Squibb Building)

buildings and hotels still climbing to
higher levels permitting in most instances rapid amortization of
existing fixed indebtedness, investment interest has begun to veer

One. such

Mr.

his

Fight

Congressman Emanuel Celler calls Senate Silver Price Rider to
Treasury Department Appropriations Bill iniquitous and contends it
puts a premium on speculation and fosters inflation.

1-420

WHITEHALL 3-7522

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4502

[Volume 163

Agrees to Discuss
Margin Rules With Customers' Brokers

And Developments
Department official reviews recent trend of economic

chases

activity and contends physical volume of production is above one
and half times greater than 1939.
Lays absence of pronounced

Lists problems of reconversion policy

purchases.

no

first

tion

tlllfllll lit 1
"
<

^

v,

'

the

of

complexity

of

which to

reconver¬

continuing scarcities of
kinds
of
consumer
goods.

some

and

Yet
has

job

then

throughout this period there
been
an
underlying feeling,

nating stageso f
optimism

too, that things aren't basically so

and

chat

a

concern

bad

seem

offer

aid

to
o r

V-J

c e u

nad

the

11y

i ling

state has been
one

Amos E. Taylor

on

future

*An

OPA

of

nature

address

of

lem

the

controls—

far

with inflation has
more difficult, on bal¬

coping

must

we

so

evils of

the

and

unemployment

scale

deflation.
Trend of Economic

acuvny is of

tions and the American Municipal

to

Conference,

that

recognize

avoided

have

we

large

by Mr.

Western

even

that the prob¬

means

Taylor at
joint meeting of the Pacific Coast
Board of Intergovernmental Rela¬
Association

and

expected,

made

ance

by the abrasive effects of •in¬

this

for

reason

far less sharp than

was

bten

neen

dustrial disputes, debates over

working out.

good

though this

brought

tion

is

Day

irrita¬

of

are

underlying feeling. The decline in
overall
economic
activity
since

hindrance. Re-

p r e v a

had feared—

many persons

things

There

particular

s

events

as

The

trend

recent

President of the Association.

a

(Continued

Mt. Hood, Ore., June 21, 1946.

which is

product,

national

gross

economic

sufficient importance
few figures.
The

warrant

page

on

and

Eastman,

the

question

the

month

wrote

to

its position

C.

Donald

Blanke

a

letter, printed in these

view to relaxing the

(issue

of

23),

May

ad¬

the strongest terms that
such action should not be delayed
in

securities

markets

are

ueciining and pointed out that the
Association

had

tions regarding
would

like

tween

tion

certain

the matter that it
with

discuss

to

sugges¬

the

the Board and the Associa¬

since then

learned,

the

Inaugurated
Send Food Packages to Europe

the

it has

and,

been

has

Board

barred

are

from

all

rules

they

as

the

stand,

now

agreed to send a representative to
New York to see Donald C. Blanke

is

a

Government
ed

with

there is

feeling among some
closely connect¬

men

market

operations

that

plenty of cash around
and that the markets will absort
now

"anything."

According

to

their

of thinking, there is absolute¬
ly no need for a relaxing of the
margin requirements at this time.
In fact, they profess to see dire
consequences if the rules are re¬

John Kalb

way

laxed.
The

us

H. Voorhis

Broad

This is under

precipitous drop in the bid

Phillips, Gilbert H. Wehmann

cer

Louis Orchin.

and

resigned

Mr. Kalb has recently

market, according to some market

partner of Lewisohn &
Co. where he developed and man¬

the

aged ♦hpi- investment research de-

analysts, including members of

as

a

senior

(Continued

Association.

Hiii

circumstances to be construed as an

no

any

NEW

Di¬
the

of

rector

National

Asso¬

ciation.

Colo¬

at

Bilt-

the

Hotel,
York

New

the
of

City,
at
launching

"Share

the

CARE"

Thru

campaign

to

food

move

Logan

Discuss SEC
The

Logan

spoke June 21
more

Security Dealers

Res¬

taurant

nel

N. Y.

on page

3517)

iimi immwiiiifciMii

offering of these securities for sale, or as an offer to buy,

oj such securities. The offer is made only by means oj the

Prospectus.
June 26, 1046

IS<TIE

$13,750,000

hungry

to

peo¬

ple in Europe,

New

York

Security

Association will hold

ers

ing

First Mortgage

Proposal
a

Deal¬

Dated

June

I,

Compar

Bonds, 2%% Series due 1976
Due

1946

June

I, 19'

meet¬

(Friday)
at the
Club, with the principal

tomorrow

Bankers

topic being the recent request of
the Securities and Exchange Comthat

sion

tions

Price 101.75% and accrued interest

Congress make it man¬

for unregistered corpora¬
make public data com¬

datory

to

parable to
companies
listed

on

of

President
E.

that now required of
whose securities are
the
exchanges.
The
Association

the

sponsored by the Cooperative for

C.

American Remittances

head

C.

is

E.

Copies oj the Prospectus may be obtained from any of the several under¬
only in States in which such underwriters are qualified to act as
dealers in securities and in which such Prospectus may legally be distributed.
writers

Unterberg & Co.

Inc., popularly known
General

William

ecutive

Director

N.

of

to
as

Europe.

To Redeem Norway Bds.

CARE, in in¬

Colonel
Logan,
an¬
nounced the inauguration of the
nationwide CARE campaign which
is -expected to effect the distribu¬
of

approximately 3.000,000
"10-in-l"
food
packages to
people of tt\e
10
European countries participating
Army

in

the

surplus

CARE

plan.

Of the 49 pound

is

the

that

largest

package, which

package

food

unit

be sent abroad under ex¬

can

isting regulations, General Haskell
said that

the CARE package "of¬
fered the American people an un¬

precedented opportunity to render
a

great

service

Europe, and
pate

in

way in
a

very

a
a

a

people of

the

to

chance to partici¬
and concrete

personal
program

set

up

to meet

great existing need."

Colonel Logan, former Chief of
Army Food Service in the Office

(Continued

on page




of

CARE.

Haskell, Ex¬

Holders

troducing

tion

Unterberg,

3521)

fund
due

of

2-3-year 4%

external loan coupon bonds,

dom of Norway are

being notified

that $471,000 principal

redemption

for

sinking
at

fund

on

through

August

1,

the

1946,

Redemption will be made

par.

at the head office of The

National

City Bank of New York, 55 Wall
Street, New York.

Snyder With Mead, Miller
BALTIMORE,
Snyder
with

Mead,

National
the

Stock

Miller

Bank

New

MD. —Joseph

become

has

&

Exchanges.

and

W. E. Hutton & Co„

Harris, Hall & Company
(Incorporated)

F. S. Moseley

& Co.

Tucker, Anthony & Co®

Shields & Company

associated
Co.,

First

Coffin & Burr

Laurence M. Marks & Co.

Julien Collins & Company

Incorporated

Incorporated

The Robinson-Humphrey Company

The Ohio Company

H. F. Boynton & Co., Inc.

Ball, Burge & Kraus

Fahey, Clark & Co.

Hayden, Miller & Co.

Stroud & Company

Maynard H. Murch & Co.

Barret, Fitch & Co., Inc.

Seasongood & Mayer

Stockton Broome & Co.

Curtiss, House & Company

Baltimore
acinMicm'TriTigi'''-

R. L. Day & Co.

Merrill, Turben & Co.

Laird, Bissell & Meeds

Bldg., members of

York

Corporation

amount of

these bonds have been drawn by
lot

The First Boston

sinking

February 1, 1963, of the King¬

Street,

general part¬
ners are John Kalb, Peter A. H.
Voorhis John C. Newsome, Spen¬
New York City. The

prices of many stocks during re¬
cent spells of weakness, however,
reveals what can happen in a thin

Iowa Public Service

Food

Research

P.

Peter A.

15

at

to supply Europeans with food now
in the long run," according to Colonel Paul P.

Logan,

Col. Paul

ofifces

with

that is made

will be beneficial to

1,

the exchanges by the

on

Cooperative organization to distribute 3,000,000 Army
surplus food packages to 10 European countries.
move

will

July

on

3518)

"Share Thru Care" Campaign

"Any

business

markets

event

.

To

Exchange,

Stock

A

There

rules. The

the

commence

Association holds.

margin regula¬

on

tions with

until

York

New

any

margin

the

it to reconsid¬

vised

the

of

activity

urging

columns

Opens

newly formed firm of Kalb,
Voorhis & Co., members of the
The

the

to

volume of liquidation.

in

transactions

first

er

Hew NYSE Firm,

safely participate in stock market

ago

ciation

Broad

due

Kalb, Voorhis & Co,,

large number of people who could

Asso¬

that the

is

how

about

react

large

a
a

over

well indicate to the Fed¬
of

Reserve itself the wisdom

tight margin regulations, and it is
will

little

require¬

delay because it be¬

markets

stock

worried

just

the

Co.,

lieves that the present thinness of

markets.
was

&

margin

or

ments without

securities

-It

Dillion

The Association wants to reopen

aid
t o
restoring
the
strength
which, it feels,
naturally be¬
longs to
th e
as an

Board, if the Board so desired.
Correspondence has passed be¬

Activity

of

———————

of

ties—and

by alter¬

sion

full

exploitation of existing opportuni¬

/

the

to prevent

some seem

^

chases

so-^—

by a

last

of

requirements

immediate need for agricultural

the

of

again permitting margin trading.

advocating should be adopted.

for stock pur-

peacetime economy is likely
the joy at the war's end is succeeded

bering realiza-

action

that the
week

feels

Association

The
market

eral

sales,

signs

of weakness at all.

Customers' Brokers is still trying to get the
Board of Governors of the Federal Reserve System to lower margin

Any transition from a wartime to a

emotionally, as

fore the markets showed any

Association feels that the present

relaxed.

be

the

to

the Board of Governors to act be¬

tendency for stock prices to drop illustrates why what it

The Association

parity prices.
to be viewed

sales

trend, the Association
original proposal
Federal
Reserve
wanted

may very

is

as

(1) rapid return of peacetime goods at high level; (2) adjustment
offset wartime take home pay; and (3) continued con¬
trol over prices.
Concludes benefits to be derived from rising pro¬
duction and sustained high employment will depend on soundness

Sees

and

true

a

when it made its

the recent

of wages to

of the price structure.

flect

thinness of the markets is due to the margin rules and believes that

decline in postwar production to new capital investment and heavy
consumer

drop inordinately, which has re¬
cently manifest itself, may not re¬

Representative of the Board of Governors of the Federal Reserve
System is scheduled to meet soon with Donald C. Blanke, President
of the Association of Customers' Brokers, to discuss a suggestion
made by the Association that margin requirements for stock pur¬

AMOS E. TAYLOR*

Director, Office of Business Economics, Department of Commerce

Commerce

Though the tendency of stock to

Federal Reserve Board

National Reconveision Policies
By

348$

THE COMMERCIAL & FINANCIAL CHRONICLE

3484

tially the
at

as

Thus

By

lightly abandon the principle of
far-sighted
caution
that
has
played such a large part in Can¬
ada's successful management dur¬
ing the war. Indeed the situation
today calls for an even greater

eco¬

has induced abroad an over-optimistic opinion
concerning the Dominion's immediate prospects. Thus the recently
issued Foreign Exchange Control Board Report to the Minister of
Finance performs an opportune service in correcting many external
illusions.

of prudence. The special
war-time factors previously men¬
measure

report the clear im-<e>

this

From

is

that

gained

Canada does not consider her

present posi¬

tion

basically changed in
parison with the conditions

tioned have

com¬

trade

Power &

Such

Paper

capable
The

of

control

inherent

mostly

are

from

overwhelming dependence

eign markets and the absence of
effective

an

shape of

5% First Mortgage

counterpoise in the
large domestic market

a

capable of absorbing the Domin¬

Bonds

ion's

tremendous

capita vol¬

per

of production.

ume

It

is

pointed out that Canada's
rapid transition from a debtor to
a creditor position in recent
years

1965

due

was

to

developments of a
temporary rather than of a per¬
manent

nature.

The
principal
the special U. S. war¬
purchases under the Hyde

causes were

Markets Maintained

time
Park

Agreement,

the unusually
large exports of grain, and the
large influx of capital from this
country in the form of the pur¬
chase

of Canadian securities. At¬
tention is drawn to "the need for

Direct Private Wires to Buffalo,
Toronto and Montreal

ample exchange
tect

an

Canada

Dominion Securities
-

to pro¬
of

reserves

economy
like
from instability

that

resulting

from fluctuations in its balance of

international

payments."

Em¬

the

40Exchange Place, New York 5,N.Y.

fuller

will

current

reserves

of

liquid

the Canadian balance of

CANADIAN BONDS

substan-

was

On June

restrictions will not be

lightly dis¬
basic change such

carded and any
as the restoration of the old
parity
of the Canadian dollar Would ap¬

to be out of the question at

pear

moment.

the

During
for

the

the

week

market

Director, and

close friend

a

external issues remained

at a

except
for
scattered
trades in Albertas and Saskatche¬

Following the recent iso¬
but important purchase of

wan.

lated

Dominion

internals

this

unchanged at 9*4%. There
notable

absence

of

ceeding

Fred

M.

Vinson,

who

was

cently

CANADIAN STOCKS

Chief

Mr.

sworn

the

Chief
on

A. E. AMES & CO.

of

was

NEW YORK 5,

RECTOR 2-7231

important

any

rally

in¬

in

whole. On

a

as

the contrary it would appear that

of

suggestions

of

caution

being increasingly observed.

President

Truman, became the

nations in

"we cannot have

tion,

or

stable

the

pleted

also

asserted

stabilization

practically

was

and

producing
The

He

domestic

program

that

the

than

more

com¬

country

is
before.

ever

following

text of

No

a prosperous na¬

peaceful one, without a

a

world."

that

new

Justice

the spirit of the BretWoods
Agreements, saying

ton

the portico
the Treas¬

ury

John W. Snyder

N. Y.

NY-1-1045

in

is the prepared
Mr. Snyder's address:

man

can

take office

as

Sec¬

Building.

Snyder stated that he proposed
"to balance the budget in 1947."
He

also advocated full coopera¬
tion in financial affairs with other

the

at

Rukey¬

are restored, it will
be necessary to effect
reorganiza¬
tions to ^liquidate past blunders

task.
I am

with

truly honored to have here

me

on

this great dav

(Continued

on

page

and

bankers to prepare themselves

give practical and public spir¬
leadership during the com¬
ing days when inflationary chick¬
home to roost.

"Demagogues land

intellectual

going out of fashion," Mr. Rukey¬
ser
declared, "and this is good
of first rate importance. For

goofy

translated

nations,

into

political action and falsely labelled
economic

as

down

the

planning, have bogged
national

excesses.
It is important for
bankers, who understand the sci¬

numbers, to help make it
the public that the need

past

action

was

the

created

and

excesses

Otherwise

ousted

follies.

politicians

will seek to sell the blue
sky idea
that the troubles stemmed from

the voters' determination to throw

the rascals out."
Mr. Rukeyser declared that the
chapter in war production re¬

vealed

to

anew

that the

at

economy

of

for corrective

by

racketeers of both parties are fast

news

pri¬
sense

management

called up¬

come

in

But when sound ideas and
capable

Merryle S. Rukeyser

will

coast,
common

of
integrity who believe
ardently in the American system.

June 20.

ens

to

ants

Hotel

Mr.

coast

elections,

aspiring to pub¬
office, and have expressed a
strong preference for public serv¬

S chr oe der,
Milwaukee, on

ser

the

civilian

lic

As¬

a

retary of the Treasury in our time
without feeling humble before the
In a brief ad¬
weight of
responsibility which
dress
follow¬
this high office brings.
I shall
ing
h i s
in-, do my best, and it is
my fervent
duction
Mr.
hope that I shall be equal to the

INCORPORATED

TWO WALL STREET

Justice.

Snyder

was

by

re¬

made

Bankers

of

Americans have shown their
dis¬
taste for fakers

the

the

American

(Continued

Post-Wai Export

information

With regard to immediate pros¬
pects there is still nothing to sug¬

of

suc¬

"From
mary

Wisconsin
sociation

restoring

inventories

whole

world

private enter-

on page

3520)

nf

3517)

my

Quotas

By ROBERT C. TURNER*

Director, Bureau of International Supply
Civilian Production Administration

CPA official refutes views government is
scandalously negligent in

permitting large export of materials and products in short supply

or

that, contrariwise, it is throttling U. S. export trade.
Explains
working of joint committee on export controls and lists criteria for
setting up export quotas as (1) historical precedent; (2) direct
benefit to U. S.; and (3) impact on U. S. economy.
Says CPA, in
its task of prohibiting overseas shipments that would drain material
and equipment essential to reconversion, has no choice but to
exercise restraints
There is

today

over

exports.

amazing amount of misinformation and mis¬
understanding in the press and in public conversation about U. S.
exports and export controls (or^>lack them) in this post-war pe
are, overwhelmingly, in the ma¬
an

riod.

Judging from the comments
quoted in the newspapers, or from

jority.^

the

th^u&h

letters

of

protest written to
us
or
to the Congress,
a
great
many people in this country hold
one
or
the other of two widely
opposed
views,
which may be
paraphrased somewhat as follows:
1. The
Government
is
being
scandalously negligent in permit¬
ting large exports to undeserving
foreigners of materials and prod¬

ucts
the

in

critically short supply, at

expense

of domestic employ¬

ment, essential consumption. U. S.
veterans

or

the

long-suffering

homemaker whose

impatience at
standing in line is about at the
explosion point. Or:
2. The

Government, through the

imposition

of

extensive

and

enerous

controls, is throttling U. S.

export

trade,

upon

which

long-run prosperity of this

I

should

.^.g

?

-

today I ho$efto tell you, and

a
larger
about the kind of job
we are
trying to do and the type
of balance we are trying to .main¬

Derhaps

you

audience,

tain.
Since
in

the

the

the

of

end

CPA

war,

&

policy with respect to de¬
in the exports field that

same

control
we

have

tic field.

in

the domes¬

case

of materials

followed

In the

and

equipment which have con¬
in critically short supply
likely to be ex¬
ported in excessive quantities, we
tinued

and which appear

have

considered

exercise
The

strict

it

necessary

64 Wall

same

is

true

(Continued

in

cases

on page

3520)

*An address by

Mr. Turner be¬
fore the Commerce and Industry

add, by the way, that
the

former

view

Association

of

New

York City, June 13,

York,

New

1946.

Street, New York

WHitehall

3-1874

5

FOR

Abitibi Power & Paper Co., Ltd.
5% First Mtge. Bonds, due June 1, 1965
Principal and

interest

payable in New York, Canada

or

Price 99% and interest

SECURITIES
Government

Corporate




•

POSITIONS WANTED

OTHER CLASSIFIED ADS

Wood, Gundy & Co.
Incorporated

M unicipal

Provincial

HELP WANTED

London, England

CANADIAN

14 Wall

Street, New York 5

Direct Private Wires

to

Toronto & Montreal

to

controls.

export

where
there is serious maldistribution,
as
between foreign cou,",+v,'"s, of

the

$100,000

Company

we

the

followed

have

coun¬

try depends.

those who hold

So

We offer, subject:

Taylor, deale

in

were

Secre-<$>———

Treasury,

of

in

be

replenish¬

goods.

conven¬

tion

should

we

active

an

boom

meager

address at the

concerning the proposed Montreal
refinancing operation which would
indicate yet another postponement.

tary

CORPORATION

ment

writer,
and
lecturer,
of New York,
in
a
closing

when

midst of

section

also dull and free funds

was

52nd

the

time

itorial

standstill

25, John W. Snyder, former Mobilization and Reconver¬

MUNICIPAL

this
the

clear to

to

sion

economic

columnist, ed¬

ence

it can be anticipated
war-time controls and

John W. Snyder
New Treasury Head
Promises

PROVINCIAL

syndicat¬

ed

ited

the

work for reduced public
expenditures and a balanced
budget. Urges world cooperation in the spirit of the Bretton Woods
Agreements. His career one of advancement in field of finance.

GOVERNMENT

ser,

to

that

are

area

change of farreaching proportions
is
States, according to Merryle Stanley
Rukey¬

sequently

previous

dollar

economic

and

on

indebtedness vis-a-vis the United

1-702-3

Political

under way in the United

comparative stability that

vestment markets

total

,

has only been achieved as a result
of constant careful effort.
Con¬

gest

the

in

exploitation

but in the meantime nothing
be done to jeopardize the

States

B®11 System Teletype NY

the

time

rise

Predicting that demagogues and intellectual racketeers will soon be
out of fashion, M. S. Rukeyser calls on bankers for real
leadership
when "inflationary chickens come home to roost/7

50th

with the continu¬
capable management
Dominion's economic af¬

phasis is also given to the point
that
notwithstanding the war¬

Corporation

to¬

the

and

ever

for¬

on

uncertain

evenmore

of its unrivalled nautral resources,
Canada will emerge stronger than

Canadian economic position is the

Company, Ltd.

Due June 1,

of

the

of

of

fairs

in¬

within.

weakness

is

Ultimately
ance

largely by external factors.
influences

operate

day than before the war.

that the economy of the Dominion
is subject
to wide
fluctuations
caused

ceased to

now

the outlook for international

and

pre¬

vailing before the war. The facts
and figures produced demonstrate

ABITIBI

Goofy Notions On Way Out

war.

for the direction of Canada's post¬
economic policies
will not

management

pression

of

a

war

WILLIAM McKAY

Outstanding Canadian success in the fields of financial and
nomic

outbreak

general conclusion can
be reached that those responsible

Canadian Securities

1946

at the end of 1945

same

the

Thursday, June 27,

SEE INSIDE BACK COVER

Number 4502

Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

348S

t

The

tenants out of houses which they

Crazy Real Estate Market

now

If

By ROGER W. BABSON

G.I.

crash in

a

a

for houses—both old

market

The

new—is

and

houses such

today

the

to

came

stock

a

market

after

the

big

in rents, but

more

as

buyers' strike.

gusted with the

last

carpenters

a

the

crash

forms

bricklayers,

painters

are

ap¬

as little as possible
dragging out the work.
The

hard

cost

nation's standard of living can be

for

build

raised

new

years

more.

more

to

twenty

ago and which,
could

sold at
Roger W. Babson

or

are

boom

unhealthy
The

three

$12,000

their

in

have

whom

for this

army

been

build

(1)
of

and

members to do
stead of

the aim

as

you

will be rendering

by helping to break this
crazy
market.
On the

if it is a house in
which you live, unless you defi¬
nitely have some other place to

and

hand,

(2)

these

at

The

gov¬

high prices.
general advices apply

crazy

same

business

to

and

Factories,

property.

of their

property

farm

stores

and

farms which you occupy

little work, in¬

yourself,
should continue to hold; but

you

the

is

now

time

in"

"cash

to

Hence, it is difficult
to get a new house built within a
year even if one is willing to pay

those which you don't occupy

the fantastic

will

on

possible.

as

course,

prices.

the

in

work

is

never

inflation that

yet been an era of

was

not followed

by

of deflation.

era

an

labor

by

Getting

handi¬

conditions

and

material

shortages. Yes, they long
they will again
able to build good houses at

for the time when

only

prices.

They

handicapped

by

unions, but they hate to
lumber

green

which

they

labor

use

small

and

are

not

are

the

sizes

compelled to do at

Therefore,
is that if

buying

time,
the

a

you

other

means

can

house

get on without
at

present

the

had better do

this

hand,

On

so.

probably

waiting until after 1950 be¬

fore you can get a decent house at
a

fair

Tenants

Out

The general rules about

price.

Jos. Walker, Jr., Joins

tenant

Sons,

Broadway,

Walker &

New

York

City, members of the New York
Stock Exchange.

of 11,400,000 male veterans discharged, 8,800,000

Joseph Walker, in direct line, to

join

already employed.

Unemployment among

World

II

War

has

veterans apparently

are

carried

out

ports.
The steady growth in both our

contemplated, our exports
might reach and be maintained at

a

level

imports and exports in the posttransition period should go a long

between

$11,000,000,000
$12,000,000,000, according to

and

He is the fourth

the firm, which was estab¬

lished in 1855.

maintaining pros¬
conditions in this country,
Department
of
Commerce
said. Assuming there are no seri¬
ous
setbacks
to
this expanding
world economy, United States im¬
ports might be expected to in¬
crease to about $14,000,000,000 and
exports to about $13,000,000,000
towards

way

the International Economics Divi¬

perous

sion

the

of

Commerce

Department's

Office of Business Economics.
United States

loans, public and
private, and other foreign invest¬
ments, may total as much as $30,000,000,000
by
1951,
including
some $10,000,000,000 in prewar in¬
vestments,
the
Department
of
Commerce estimated.
In

the

States
be

long

the

run

United

international account must

balanced

through

accept¬

our

of increasingly large imports
manufactured
goods
and

by 1975, it was said.
In addition to buying from

$4,000,000,000 in cash representing
amortiza¬

investment income and

facing this country is that of grad¬
ually developing an import sur¬
plus without harmful repercus¬
sions on export trade and the do¬

accounts could be balanced by our

mestic economy.

by Americans, and $1,000,000,000
in long-term investments, the De¬

our

heavier

The

foreign loan
program is, the

our

investment

in order to offset the interest and

The need

it

charges,

annual

purchase of $14,000,000,000
foreign goods, $2,000,000,000 in
services, including foreign travel

in

partment of Commerce said.

to

Tophtt & Kaufman Formed

1955

the

and

&

Toplitt

Kaufman

has

Armed

Forces

1960,

ac¬

Department

of

Hotel,

conduct

an

New York City,

of ihe New York Stock

members

Exchange.

Partners are Harry L.

Toplitt, Jr., formerly a partner in
dissolved

the

firm

of

Sachs

Toplitt, and Michael D. Kaufman,

accomplished, there should be
steady increase in both exports

Jr., the firm's Exchange member.

and

imports as the United States,
assuming a mature creditor posi¬

Mr.
an

Kaufman

has been active

individual floor broker.

coming

ert

Bonds

Rob¬

months,

Good¬

C.

An

Director

win,

of the

bonds

itive

o

with

f

the Bureau of

C.

Goodwin

World

War

employment of
veterans had in¬

net

that

II

by about 2,600,000 in the

three months preceding the
sus

report

May

on

the

Cen¬
labor

forces.
"The latest report of the Bureau
of the

Census

shows," Mr. Good¬

win

said, "that of 11,400,000 male
veterans discharged by early May,

listed as employed.
Of the balance, 570,000 were classi¬
fied as students, 300,000 as retired
or unable to work, 930,000 as un¬

8,800,000

on

gage

of

Ohio Edison Company

together

Common Stock

the issue of
common

first

$13,753,000,

bonds due

(par value $8 a share)

of 5%

mort¬

1969, $1,-

Price $41.25 a Share

debentures, 38,542

shares of first preferred stock and

12,478 shares of second preferred.
The

balance

used for

of proceeds

additional

for

The

new

or

on

will be

capital improvements and

bonds

before

Copies of the Prospectus may be obtained from any of the undersigned
only in States in which such of the undersigned are legally
authorized to act as dealers in securities and in which

working capital.

were

employed and seeking employ¬
ment, and 800,000 as not in the
civilian labor force,
which in¬
cludes those not seeking employ¬
ment
because
of
miscellaneous
personal reasons such as resting,

were

applied to the retire¬

3%%

442,000

are

May

redeemable

31,

1947,

such Prospectus may

at

creasing to the principal amount.

They

are

sinking or improvement fund.
Upon

morgan stanley & co.

also redeemable for the

completion of

pany's refinancing

the

program

out¬

standing

will

con¬

sist of $15,500,000 of funded

Mr.

Goodwin said that in both

discharged

during

those

from the armed forces.




months

42,500 shares of 3.75%

smith, barney &

of

common

the

stock (assuming all of

common

w. c. langle y&

stock offered is sold.)

co.

co.

drexel & co.
lee higginson

corporation

Mcdonald & company

preferred

stock, par $100, and 549,333 shares

kidder, peabody & co.

Incorporated

debt;

capitalization

harriman ripley & co.

blyth & co., inc.

com¬

the

April and May more veterans had
found employment than had been

legally be distributed.

104% % and thereafter at prices de¬

looking for homes, visiting friends,
waiting to return to school, and
like."

•

i.

and

bank loan of $1,750,-

a

000 will be
ment

204,153 Shares

2%%

June 24.

proceeds from

stock and

solicitation of an o/fer to

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

on

at compet¬

preferred stock and

new

Robert

Census

showed

biding

any

Public

bonds

to the group

Proceeds from the sale

study of recent
estimates

Corp.

101 %%

at

interest. The

awarded

a

1976

buy

the public an

first mortgage

due

accrued

that

Boston

This announcement is neither an offer to sell nor a

headed

group

$13,750,000 Iowa
Co.

o n

Mr. Goodwin

creased

of

Service

June 16.

the

26

issue

ployment
Service, an¬

said

First

offered to

June

Em¬

nounced

The

by

United

States

Publicly Offered

underwriting

June 26,19^6.

&

After the change-over

commerce.

Iowa Public Service

tinues to slack
off in

to

investment business as

&

c o n¬

been

formed with offices in the Savoy
Plaza

to

between

cording

a

ledger,

was

change over from
an economy supporting an excess
of exports to one supporting an
excess
of import will probably

is

On the other side of the

urgent it will be for us to

adopt commercial policies conduc¬
tive to a rapid growth in imports

come

tion of loans.

passed its peak and should continue to decline as the demobilization
of the

us

$13,000,000,000
in
merchandise,
the various foreign debtor coun¬
tries should by 1975 be in a posi¬
tion to send us each year about

purchase of services,
such as foreign travel, it was said.
The basic foreign trade problem

through

pointed out.

Commander, USNR, is now

120

loans

and

now

amortization

Robert, C. Goodwin, Director of USES, reports that

are

ments
as

more

associated with Joseph

Reports Veterans' Unemployment Pas! Peak

imports should*®*
foreign nations tion,
shares
in
the
expanding
begin paying off their debts, ac¬ world economy.
cording to Department of Com¬
However, while the change-over
merce release on June 21.
is being made, the nation's econ¬
During the next five years, if omy will have to adjust itself to
generally
favorable
conditions the temporary and relatively mod¬
prevail at home and abroad, and erate decline in exports, and to
if United States long-term invest¬ the simultaneous increase in im¬
rise steadily as the

and

Joseph Walker, Jr., former Lieu¬

getting

two and thereafter

of

suggestion

final

my

you

Capital outflow from the United States to foreign countries will
probably begin to decline after reaching a peak in the next year or

ance

the present time.

a

conditions.

the

Joseph Walker & Sons

absolutely

Not only will wage-work¬
themselves be obliged to pay

a

tenant

in inflation and it
to
increase,
but

are

continue

wrong.
ers

we

there has

ing and for demanding reasonable
wage increases,
but this "slow¬
down"

collecting rents therefrom. Of

are

I don't blame labor for unioniz¬

but

the

severely

are

capped

cannot afford to sell even

go, you

much work, in the day

as

service

present

it difficult to
homes.
(3) The labor

rules

collect rents,

This will give you a good

other

making

new

union

house

a

getting

moreover,

reasonable

a

married

the past five years
now naturally want a home.
The crazy regulations of the
during

ernment

sell?

now

is that if it is

two

This, however, is not the fault of
the contractors. They are working
hard to give you as good a house
as they can at a fair
price. They,

be

profit and

12,000,000 men, a large percentage
of

present house

answer

have

money

the

will have

you

than they are worth, but
houses are likewise inflated.

but from which you

houses:

discharge from the

who

their

double

of

six

con¬

more

which you own and do not occupy

more.

reasons

Sell?

to

sell it.

are

bootstraps.

our

houseowners

My

Reasons For The Boom

There

pull ourselves

chance

on

being

producing

us

Should

ago

$6,000

cannot

Shall We

a

at

by

up

bought

years

now

We

have

been
ten

only by all of

in

in

case

he is willing to move
Thus, the purchase of homes
for speculation is risky.
Not only are old houses selling

and

or

neither

mentioned,
time

evicted

your

out.

Houses that

$8,000

with

If

notices,

proper

be

can

(3)

a

Capital Outflow

steady rise in our imports
when foreign nations begin paying off debts.
Places future exports
as
high as $13 billions per year and imports up to $14 billions.
Holds increased foreign trade should aid in maintaining prosperous

is

property

who is to oc¬
with his family

unless

out

U. S. Department of Commerce foresees

a

notices,

immediately employs

tenant

above

Predicts Future Decline in U. S.

a

anyone

himself

months.

parently doing

boom.

it
who

crazy

as

they may start
People are dis¬

way

and

If the

(2)

(1)

by

be evicted in three

lawyer to prepare

the stock market in 1929. Some day there is bound to be
in the price of^

as was

and

bought

immediately gets

can

bought by

you can

follows:

as

is

prepare proper

months.

cupy

house should do so. Says it will be unlikely that
decent house at a fair price before 1950.

get a

who

man

the tenant

price of houses/' advises those who own houses but do not occupy
them to sell at present prices, and anyone who can get on without

are

property

lawyer to

Mr. Babson, asserting "some day there is bound to be

buying

occupy

the

w. e.

hutton & co.

e. w. clark & co.

as

Structure and Operation of NAC

Securities Salesman's Corner
DUTTON

By JOHN

Clientele Building—A Few
There

are

have

Suggestions

certain basic fundamentals which

prospects.

your

are

out

business.

do

to

much

as

as

time

is

valuable.

Cull

out

of

can

sell it.

a

Keep healthy, don't

never

you

do.

first and think
Success

]ater—the

is the

of control

result

over

your score.

either

business

Any

needs
a

smart

years

man

week.

a

or

held

in

office,

new

glasses.

You

in

NAC

the

their

their a.des do

conference
of

floor

of

own

the

on

room

Treasury.

long table,

a

being grouped around

Secretary's

desk

formerly,

as

they

can

fort.

(It might not be inappropri¬

ate

to

operate in greater

from

room

the

the

into

move

room

com¬

conference

the Secretary's
handsome

dining

oval

table

bearing around its perimeter six¬
teen metal

plates. These engraved

memorials commemorate the

clusion

that

around

intergovernmental
t.

Each

bttle

of

names

the

pl^e

the

of

table

funding

debt

War

the

gives

negotiators and the

due Uncle

sum

Sam.)

Although NAC and
the Ad¬
visory Board of the Export-Im¬
Bank

port

identical

are

in

mem¬

bership, with only different chair¬
men, the gavel has never left the
NAC

chairman's

hands.

In

other

words, the Bank's Advisory Board
was

a

stillborn

of

creature

Con¬

gress.

The

NAC

of

the

was

NAC's chairman.

the

advantages
of

man

thinks first

National

a

Apart from

which

the

chair

body possesses, Mr. Vin¬
sure to make

by nature

was

his voice fully heard.

At the Sa¬
vannah Fund and Bank meeting,
it

will

be

recalled,

who there too

your

criticized

gates

was

by

and

some

Vinson,

Mr.

chairman, was
foreign dele

Americans

some

fair

a

for

LIBERTY

for

cause

None the less, it seems
that

Vinson's

of

man

a

relations

close

with the White House would

request

Co., Inc.

greater influence

a

members

has

a

in

in

voice

car¬

of

case

its

deci¬

sions equal to that of each other
member.
Actually, the main in¬

STREET, NEW YORK 5, N. Y.

fluence has been wielded by
and

son

Assistant

State

Will

equal

measure,

official
to

Over-the-Counter Quotation Services

of

Secretary

in perhaps
according to one

Clayton,

who is

judge.

Vin¬

in

good position

a

According

this

to

in¬

formant, if vou rate the influence
in NAC of Vinson and Clayton at

For 33 Years

100

each, that of Marriner Eccles

could

be

Wallace

set

and

down

75

at

William

of

and

McChesney

Martin, Jr., at 25 each. Martin, it
may be noted, did not participate
in

NATIONAL QUOTATION
BUREAU, Inc.
Chicago




the

work

of

NAC

until

about

the beginning of January, 1946.

Established 1913
46 Front

meetings, Eccles only
Martin

and

NAC

Sxces,

bers

entails

two,

one or

probably

Be-

none.

for

its

mem¬

good deal of "home work".

a

the

bank

Export-Import board

He

objected

needed

the

that

time to

more

proposals

than

the

study

NAC

was

granting it.

He objected that Ex
port-Import Bank did not have in
s ght
enough resources to meet
the

programmed

French

credit

needs, although he reportedly did
not question the program.
There
is

to

reason

sided

believe

that

Martin

with

Wallace and Eccles in
their opposition
to the political
considerations of making the an¬

NAC

nouncement

of

of

the

agreement

must, along with the work
the top-level committees wnich

have

handled

French

loan

the

British

and

negotiations—gener¬

French

the

conclusion of

prior to
ihe then imminent June 2
French

elections,

personnel—be the
major claimant of the time of its

would

the grounds that this

on

elections.

ally the

same

Secretary of Commerce Wal¬
nas personally attenued orn^
about a third of NAC's meetings,
being
represented
instead
by
lace

Arthur Paul

H. W. Parisius. In

or

meetings,

Mr.

Amos

Taylor used to attend with

Wallace,
true for
many

this

but

tional

economist

background

affairs.

Wallace

the

Com¬

of

payments studies, is

first-class

excellent

been

not

balance

Department's

internat onal

for

or

Taylor, for

author of

years

merce

a

has

months.

some

E.

has

with

in

The

Mr.

reason

ofteier

been

not

an

interna¬

NAC meetings may be due to

fact rot that he
tional

matters

man's

tive

and

In

town,

entailing

have

far

as

as

This

evidently

NAC

attend
a

of

when Mr. Wallace

explains why,
takes

of

out

travel

Coast.

does

majority
been

great

meetings, he
re^tivety inactive part in

them.

While

has

important bearing

an

and

merce

and

the

production,

imports,

for

the

reasons

ment's

work

on com¬

exports

on

the

foregoing

Commerce

NAC

in

role

NAC

of

Depart¬

has

Eccles

acquainted

would

Board

has

Federal

played

in the NAC

with

Mr.

chair¬

Reserve

role

active

an

meetings. Incidentally,

he is

a

man

of

law

prescribes

member of NAC
the

chair¬

as

Board—the

Reserve

but
does
not
commit this Board. (Mr. Martin at

NAC is in the
tive

the

to

director

May 7, and by

of

on

same

Board

position, rela
the

of

Export-

asks

questions

root

of

sion.

the

repeatedly

Eccles

Bank.)

which

matter

the

expose

under

discus¬

Among his associates he is

known

for

keep

man

remarkable

data

in

Vinson,

this

ability

his head,

in

figures."

on

rival

his

respect

Judge

was

whose "homework"

ceding

NAC

meetings

his

colleagues.

tounded

pre

often

as¬

is

Eccles

accompanied

regularly

hot

"a

In NAC Eccles'

NAC

to

of

his

the

World

a

number

even

others, including

General

capacity of Am¬

China

and

seeker

financial aid for

of

that

Marshall brought his
to the proper

directly

re¬

au¬

thority.
others

Among
+er>ded

NAC

who

have

meetings

for

at-

the

State Department are representa¬

tives

the

of

Foreign

Liquidation
headed
by
Mr.

Commissioner,

Thomas B. McCabe.

A few repre¬

sentatives of the War Department

have

attended

NAC

meetings

on

including officers con¬
with disposal
of surplus

occasion,
cerned

property, with foreign-currency
holdings of Army finance officers,
with

and

public relations.

the key man in NAC

moved

out

foreign policy he made
would be guided by

matters of

he

clear

it

stated, Judge Vinson
until he
of the Treasury, in

as

Department's judgment
To State De¬
partment views, Eccles similarly
has deferred on occasion, when
otherwise he would have voted

the
as

State

general rule.

a

differently.

chairmanship,
told, "staff
members like White and Collado
have been kept in place." Previ¬
Vinson's

Under

the

to

been

has

writer

ous

Import

to

—

it

foreign lending.
Clayton, the State

ecutive

been

the

exoect,

the

of

man

to

Bank

While,
those

ac¬

and,

was
very
regularly
represented at NAC meetings by
E. G. Collado, until his
assump¬
tion of the post of American ex¬

quest

The

very

discussions

Department

country.

addresses

he is

yeo¬

greatly

well-timed

addition

During NAC's first

these

A

strongly conscious of the
political "values" in well directed

to

approximately 28 public ad¬

agrees
a

seems,

bassador

Wallace

effort

matter

NAC.

man,

the

large-scale

made

West

in

Secretary

more.

the

on

overworked

dresses other than appearances at

the

job

in

months

hearings.

discussed

that Will Clayton has done

Marshall

nine

an

Everyone with whom the writer
has

domestic

for

as

by Washington to influence those

financial

and

but

less,

the

for interna¬

cares

economic

matters

at

be interpreted

becoming Secre¬

Vinson's

tary of the Treasury some of the
subordinate
officers of that de¬
partment, such as White, played
a
more
determinative role than

replacement of
longcontemplated absorption of Treas¬
ury personnel by Fund and Bank
How the

latterly.

by Snyder and the

Vinson

NAC
assumed
schism within NAC than some of
that Secretary Snyder cqo count
Walter
R.
Gardner.
Knapp
is
the other members.
on full White House backing, but
Eccles' official alternate on NAC.i
people are wondering whether he
Theoretically, of course, since
The Export-Import Bank was
carries as much weight on Capitol
Congress was not specific when it
represented in early NAC meet¬ Hill as
created
Vinson, whether he will
NAC, each of the five

I m

55

similar

no

deduction

Judge
ry

&

was

complaint.

Stock

Herrick,Waddell

by from two to four

Treasury staff officials, in¬

As

Advisory Council, is the Secre¬
tary of the Treasury. During the
whole of the period under review
in
this article,
Fred M. Vinson

Mary Lee Candies, Inc.
on

did

accompa¬

cluding NAC's secretary, V.Frank

Personalities

chairman

there

[ Prospectus

other

he

which

at

personally preside,

in

meeting.

weak.

"bulldozing" the meetings. In the
NAC, however, it is reported that

union

held

was

no

and

was

real success—it is all out there waiting for you to go to it!

Co

NAC

Vinson's
meeting of

During

office

con¬

agreements following World

curiosity

make

a

fourth

Chief

can

of

earlier
were

Vinson's

nowadays

but

instead

the Treas¬

in

There, seated about
the

the

now

meetings

Secretary

business
the

the meet¬

but

early

members and

of learning better ways to do things,

some

De¬

not held at any

held

and

The

ury.

real good money for himself while he is doing

rest,

meet¬

State

history,

were

interval,

chairman

emotions, of constantly striving to improve
who can t get fun out of this kind of a job, and

some

total

a

is to meet at least once a
Meetings are called by the

poJicy

fooled anybody.

is the fellow who

tenure

it.

con¬

dxiigent members.

the

by

early

regular

leads.

man

its

son

of

in

other

more

or

headed

In

your own

meanwhile make
it

up your

20

ings of NAC

and work.

worry,

Follow

British

the

partment.)

Be systematic in every¬
Cull out the dodos. Send
interesting clippings to your customers.
Remember to take a few
people out to lunch each week.
Keep your head cool, study your
customer s desires, his hopes and his vanities.
Let him do all the
fancy talking. Save your conversation for the times when you want
to sell him.
Then say the right thing at the right time.
It is easy
to do this, providing you think before you speak.
Most people talk

thing 'hat

30

negotiations with the British

were

good salesman believes in a situation he

Lukewarm confidence

Au¬

in

held

has

ings. (The financial and commer¬

possible by telephone calling.

When

SPEECH.

meeting

NAC

the

with

some

cial

YOUR BUSINESS AND THAT IT SHOWS IN YOUR ACTIONS AND
YOUR

first

its

1945

tions

If you have to take more than one inter¬

Your

with

hard at

been

Coe.* Clayton has missed very few

meetings of its own*. In addition
participated in the negotia¬

Work by appoint¬
ment.
Put some value on your own time, be confident, believe in
yourself, your firm, and put a price on your knowledge and expe¬
rience.
The world will value you at your own valuation. This doesn't
mean being arrogant or snobbish—but it does require that you KNOW
seekers

nected

nied usually

prospective total

on

it has

not asking enough questions

are

on

committee,

relations

public

gust

in your first
interview.
Don't follow up people who are looking for someone to
talk with just because they like to make conversation.
There are a
lot of lonely people that own a few securities that will give you some
swell interviews (if you let them do all the talking) and someday
you may sell them a few shares of stock or a bond or two, but the
business won't be worth the time you've wasted.
Remember, you
this you

committee

have

they

not

Since

prospects with care.

introduc¬
valuable to you in opening new accounts
than thousands of pre-approach mailings, and many so-called cold calls
on new prospects.
Incidentally there is a right way to do this ana
it is distinctly not a matter of asking for help.
Whatever you do.
don't ask your customers for introductions.
Put it on another basis.
You have helped them have you not?
They have made money be¬
cause they bought the securities that you brought to their attention?
Well, you have found the time to take on a few more accounts and
you would like to offer the same opportunities to one or two of their
friends.
YOU ARE THE ONE WHO IS OFFERING THEM AN OP¬
PORTUNITY TO INTRODUCE YOUR SERVICES TO THEM.
do

NAC.

by

foreign dollar needs, etc.

All won't help you, but those that ao maKe some

to

the

are

the committee

tions for you will be more

Qualify

appointed

since

the

will insure success

Good prospecting is a must ii
you want top results.
Many salesmen spend too little time finding
their markets.
They waste too much time in unproductive fields,
calling upon the wrong people. If you have an idea, see to it that it
is fitted to the type of buyer that will be interested in your proposi¬
tion. For instance, if you have selected a conservative dividend payer
that will appeal to income-minded people, send your mailings, and
direct your advertising, to the kind of prospects that will be inter¬
ested in this sort of an investment.
Or if you are desirous of adding
some accounts that will be interested in capital gains, acquire a list
of prospects that will be interested in this type of investment.
For
example, members of golf clubs (age group 35 to 60) or alert busi¬
ness
executives, members of Rotary, Lions, etc., would make far
better prospects for pre-approach mailings on this type of situation
than a list of retired pensioners, etc.
This may seem like plain com¬
mon sense, but it is surprising the amount of good advertising litera¬
ture that is wasted, and valuable salesmen's time in the bargain, just
because the right literature has not been sent to he right people.
If you have some satisfied accounts, don't be bashful in asking
for cooperation.
Speak up.
All you need is one or two cooperative
customers and you can add many new account through their intro¬

view

been

NAC

the International Fund and Bank,

Any salesman who desires to increase his
total of active accounts can do so today with less effort than at any¬
time that we can remember since the twenties.
Here are the steps;
time that we can remember since the twenties.
Here are the steps*

duction.

committees

special

Examples

building a clientele.

Select your

Martin have worked very

(Continued from page 3471)
committee,

in

Thursday, June 27,1945

THE COMMERCIAL & FINANCIAL CHRONICLE

3486

Vinson,

Clayton,

Eccles

meetings by Mr. J. Burke Knapp
of

bis

staff,

■"Of

17,

San Francisco
I
I

28

ten

NAC
were

meetings
held

held

jointly

Administration committee

have
in

left the Bank,

negotiations.

the

Both have

now

which is regularly

represented by Martin, frequently

accompanied
a

member

board,
times
if

by

of

Herbert

Export-Import
August Maffry and some¬

others.

Martin,

mild-mannered

NAC's

Gaston,

the

earnest

an

work, shows that he gives

raised
which

solved

tin,

has

and

questions
still

are

from

for

his

repeatedly

of

procedure

incompletely

viewpoint. Mar¬

example,

t^e

ton

French

has
come

article

was

against

nrepared Mr. Coe

resigned

from the Treasury and
Secretary of the World Fund.

1 Cf.

brief

biographical

Knapp in June 20

much

as

whether

note

"Chronicle,"

p.

on

interest

he

as

Vinson

financial affairs,

frequent
whether he
predecessor's poli¬
call

will

as

meetings of NAC, and
will follow his

cies.

and

NAC

the Bretton

Woods

Program
Though

the

NAC

was

created

the
Bretton Woods
agreements had been negotiated,
the agencies now represented on
NAC all played a greater or lesser
only

oart

after

the

in

Fund

and

course,

voted

the French agreement both in NAC

operation of

international

in

participant

much study to its agenda between

meetings

the

affect

remains to be seen.2 It is

ings by L^o Crowley and Wayne

and

through May

with

on

will

Chatfield Taylor.

*Since this

Street, New York 4, N. Y.

occasionally by

and

the

Woods

was,

side,

a

groundwork for tn
Primarily, 01

Bank.

evolution of Bret
from the Americ

Treasury

the early stages

project ana

the Treasury,

be¬
2 Cf.

Mr.

3344.

the

and

in

article
Bank

this issue of t*e
on
p. 3478
dealing
Developments.

wit

Number-4502

[Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

3487

*

in this matter by Harry D. White,antagonized other agencies of the

government by not sufficiently
seeking
their counsel.
By the

Bank

port

have

of the Bretton Woods con¬
ference itself, however, all five of
the "
A NAC agencies were

tion

with

the

tion

for

$1V4

m

the

participants.

in

connection

time

beginning of its work set

the very

special committee to study

a

up

*44
noted that NAC at

oe

11

and report to it on Bretton Woods

that

and

problems,

included

in

which of course is not

member

a

the preparation for the
Savannah meeting of the gover¬
nors of the Fund and Bank, NAC
was
informed — through reports
from the Treasury Department—
of
the
preparatory steps being
taken earlier this year. Draft by¬
During

laws of the Fund and

discussed

being

with .financial
a

dozen

or

this

other

governments,

mitted

to

authority or
Exportbe sought

other
to

It would

next.

that

it adjourns.f
policy considera¬

on

tions the NAC repor. here quoted
has nothing to say about political

military considerations:

or

the

Procedure

Consideration

Fund

has

given

the

procedure

tion

of

foreign

Government.

agencies

loans

There

of

the
be

can

Bank

several

under

maue

continue

lado,

to

when

they

foreign

make

respec

the

to

foreign
the

ing decisions as to exchange rates,

participated

loans, etc., the NAC will be kept

for

busy coordinating the work of the

mitments

the

in

in

made

or

for

com¬

other agencies

are

with the
foreign loan policy and the pur¬
poses for which the money is

payroll of the Fund and Bank, re¬
spectively, are the nn'v present

Fund

Bank

and

increase

questions

rapidly,
become

of Fund

and Bank

which

on

the

the

of

loans

this

Still

another
is

to

matter

related

hand

Social

and

Council

Fund and Bank
serve

their

are

broad

power

what

are

1.

divided

loan

this

Processes

the

jmonths,
.general

end

of

its

is

made

in

on

and

through

which

for

cash

a

mentioned

were

country's foreign

of

payments,

debt

production,

gold

investment

volume of foreign

status

trade and

an¬

ticipated economic, financial and

developments."
considerations

If financial

the

only

the

pleteness which

policy

ring

were

Treasury

the

with

set

all

borrowers

Emilio

G.

State

the

be

case

that

com¬

country

the

in NAC for the

expected

to

of

place

those

use

as¬

from

credits

Mr.
head

Jesse
of

who

Jones,

wartime

when
Fi¬

Reconstruction

the

extended

Corporation

nance

connection

in

and

how

it

credit to

Britain secured

determining the
an

exchange

without

Kingdom

procedure.

Whether

all others in the case of

did,

the

suggestion

NAC decision and there is lit¬

The

Netherlands

tle doubt that in cases

like that of

China, to cite only one,

they are

be

may

noted,

a

has

cannot

say.

If it

rejected

was

Government,

its

despite

it

gooo

director

has
of

The

2.

loan

jhance

of

sitive

the

bound

phasis

such

or

formulated,

Council

communicate

full.

its

so

in¬

World

the

of

French

will

apparent logic
described, as we
disclose elsewhere, the relations
between NAC and the Export-Im¬
Despite the

of the procedure

Council

Fund.

NAC

or

bers.

p.

3260.

of

a

Mr.

been

action,

if

offer these securities

majority of its

Martin

seeking

be

the

loan

NAC.
of

(Incorporated)

June

26,1946.

that

sure

In

wielded

stamp

a

by

objecting to the making"

political loans under State De¬

partment

did

not

pressure

he has remind¬
one

loan which,

as

hoped—the

out"

"pan

Polish loan.
What

is

that

Mr.

Martin

some

time

Export-Import
NAC that
be

a

assured by

in

that

can

always

if the

the

to fear

board

of

not agree with.

particular loan should
this

such

he

case

has

been,

the matter

brought

be

back

to

reconsideration, and that

reasons are

NAC

seems

Vinson and other mem¬

bers

NAC for

may

On

made.

can

good enough, the

reverse

itself.

One

change in NAC procedure has re¬
to

date

(Continued

under applicable securities laws.

OTIS & CO.

negotia¬

mem¬

apparently has
make

to

rubber

mere

Share

any,

(or
agencies)
responsible for

case

Export-Import does not become,

Share

will

Export-Import Bank Expansion to
Requested, "Chronicle," June 13, 1946,

tCf.
Be

the

in

as

has objected
to the precipitancy in carrying out
througn the Bank the wishes of

Copies of the Prospectus may he obtained from the undersigned only by persons to whom the undersigned may legally

consider

em¬

loan,

from

Mr.

on page

Martin's

3488)

matter of record only and is under no circumstances to be construed as an
for sale, or as an offer to buy, or as a solicitation of an offer to buy,
of such securities. The offering is made only by the Prospectus.

Price $10 per

tions.

agency
to

different

a

Martin,

Mr.

ings

International Mone¬

procedure in consider¬
ing foreign loans and the general
financial
policy
considerations.
These are both quoted below in

is

place

since become acting

the

Par Value $1 Per

Advisory

con¬

making loans, it

Therefore, in NAC meet¬

ample.

Financial
Problems
the Secretary of the

conducting

political

on

can¬

this factor than is placed

on

the

The

which

to

by the State Department, for ex¬

re¬

when

when

standpoints

the

to

While

Export-Import

siderations when
is

to be sen¬

subject.

hand

oblivious

be

Directors

known

are

the

on

one

not

Exportlaw to

reasonable

repayment.

j>f the Bank

Common Stock

re¬

Ex¬

by

a

Portsmouth Steel Corporation

the

proposal from the
of policy and co¬

to

wun

1,025,000 Shares

and

ordination.

ernment's

NAC,
required

loans

offering of these securities
any

ex¬

with

the

is

Import

This announcement appears as a

the request or

six

dissastisfaction

outside

sulted
Bernstein

3 Mr.

research

so.

NAC

given consideration to that sugges¬
writer

can

similai

NAC

and

repeatedy

role in the foreign
lending picture under NAC. Ac¬
cording to information obtained

a

ing of the $4.4 billion loan to the
United

Bank

has

ed NAC of at least

the

doing

were

of

rities, recently criticized the mak¬

Political considerations

override

dollai

and

Bernstein

M.

tion

rate.

of the French

gold

position that France should

in

sets3

Lalir

to

the less.

Treasury argued
French

world

speaking
Department, urged

offered

were

for

E.

cited,

the

over

Collado,

large

of

holdings

need!

the

lending

none

the

loan,

fit

by British-owned American secu¬

Fund

about

parity

proper

an

BW

the

difficulty being
the available

to

resources

finds in the

one

explanations which
by

state¬

of

con¬

America.

little to be de¬

leave

has

It

sired.

this

ones,

ment would

in

in 'stretching

credit

not

import¬

NAC

in

the

with

nection

Mr.

o.

basis.
Yet wher
large
holdings

available.

analysis

result

a

America's

America

balance

principle of
prin¬

port-Imports

Council.

NAC gave a
detailed
description of the Gov¬




on

Latin

continued

a

National

the

tary

Loan

first

ing

as

policy of exporting

lend-lease basis and

a

in¬

foreign
to rec¬
foreign loan be

received

proposal
Council

Proposals
At

for the

holdings

hibited

proposes
a

should,

form

of this country

much as $600,'000,000 of World Bank securities.
NAC

on

dollar

American

Martin

agencies should

request
that

is

quest

able to buy as

How

the

Mr.

enables

described!

which

or

made,

Harry D.
White, now an executive director
of the World Fund, told NAC that
are

be

to

is

a

ommend

Mr.

commercial banks

is

Government

ceives

them¬

on

position,

come

NAC in connection with
America, the United King¬

the

Any agency of the United

States

informed Eccles

while

the

This matter has

Export-Iiftport

following action of the Council:

But Mr. Col¬
lado who has since become Ameri¬
can
executive
director
of
the

•of the World Bank.

•question,

and

faced

sources

business

ciple of "no collateral."

be

France, China, etc.
Latir
America greatly increased its gold

the

position,

exchange

to

seems

dom,

and

purposes,

is made of the

consideratior

there

When, in the
these

the

the

"collateral" for the political

through
the

instrumentality

force

Latin

loan,

funds

"For

participate in the negotiations.
The procedure which is now
in

in

up

allocation of

limited

jected

flexibility is the gold
holdings of prospective

dollar

for

participat¬

decide

to

what agency or

Woods insti¬

tutions, Mr. Eccles has stated his
strong opposition to commercial
banks underwriting the securities

selves

This

with

It also

loan.

a

credit

or

In discussions of matters within

bankers

agencies

Council

the

exchange

of

of

finane.al

which

borrowers.

foreign countries; and the
the

is

States

interests

Con¬

proposal.

the

of

dent to

to probe into

in¬

as

economic

ing makes for a more thorough
study of the conditions prece¬

the

for¬

of

"Amount

sovereignty. The im

the United

financial

would follow suite and not require
collateral. In short, NAC has re¬

policy

consideration

number

.and Bank.

World Bank, has
that commercial

of

be

may

special

central

•questions in the field of the Fund

the scope of Bretton

by

of

2nd

loan, such as the International
Bank, private investors, other

volving

ex¬

loar

parts of the Gov¬

with

aspects

Economic and Social Council pos¬
sesses

made

been

which

cerned

anxious to pre¬

while

for loans

of this Government.

any

ernment

The

autonomy,

in

draw

and

other.

the

on

re¬

gives the Council an op¬
portunity to consider the loan
from the standpoint of the Gov¬
ernment's loan
policy and to

ar¬

Economic

the

all

This

rangements to be worked out be ¬
tween the Fund and Bank on the
■one

for

to the Council before any

any agency

come

the

to

procedure

proposals

and

of

prospects

"Alternative

some

every

-Oiismeraoie

foreign

the

by

of

was

o

Dossessin® the <°Hnb"t«

Another

country involved;

would

this

commitment has

vestment policies and programs.

before NAC

proposals

and

requests

come

in¬

country's

problems and has
to insure

orderiy consideration

more

quests

largely from the American people,
the NAC will be busier than ever,
coordinating

atten¬

close

procedure

a

Under

money
for
will
come

the

since

Bank

The

foreign loans.

agreement are considerably
broader than those of the Fund;
moreover,

con¬

amount

given

these

tion to

Bank

World

has

installed

de

The terms of the World

by NAC.

cated

financial

least

requests

national

about

work
there

overlapping.

and

Council

of
of

certain

fusion

American
executive directors will be guided
cisions

a

of

and

area

coordinated

not

was

will
in¬

this

Council

was

There

active.

stitutions
scores

those

once

are

the

establishment

the

loan requires no collateral, there¬
by acceding to Dutch wishes.
It

Treasury of the World.

Policy

"loan,

a

poncy

pression is abroad that the Treas¬

position of the borrower;
"Ability, to repay, as indi¬

monetary

Before

International

on

concerned

spent.

participants
in
NAC's
secret
meetings
who are not on
the
United States payroll.
worn:

foreign

negotiating

cr

and

loans.

foreign

making

NAC's

ments

or

detail®* is that
White and Collado, being on the

are

govern¬

consideration

"The need for

negotiation

the

its

the

mplicant
of

dicated by the balance of pay¬

which

negotiated

past

foreign loans

loans,

or

by gold.

as—

certain agen¬

are

which, although not involved in

interesting

to

Administration

recognize to at

ury

banks

central
secured

loans

Council considers such questions

In

the NAC.
An

Bank

loans, when they are first
proposed
or
requested,
the

extend

or

Government

Finally there

of

policies

of

have

directors

financial

other

Reserve

"In

agencies which
loans

credits, there

short-term

are

eign

spe¬

countries.

to

cies

with

exception to the above policy

Federal

International

Once the Fund and Bank
reach the point of making operat¬

executive

An

agreed to by NAC

making doliar

lively.

American

required

on

it is destined under the

so

noeral

coun¬

rate

American

num¬

the

addition

loans,

among

interest

tent

foreign

loans

participate in
they used to do

Departments,

a

for

nave

future

other¬

or

the

to

as

to

congressional action. In the

near

tries

documents involved.

ex¬

Bank will also be

in the Treasury

were

State

and

cial

to

ain, to differentiate

large loan to the Nether¬

a

believed that, if the ExportImport Bank led the way, private

the recent

in

requests

loans which

work
in Washington, the American ex¬
ecutive directors, White and ColNAC meetings as

this

by

ore

Government

isting authority,
of

loan

a

impossible, except in the
of the "unique" loan to Brit¬

"making dollars available abroad

tnrough which foreign loans and
credits

has completed

tended

con¬

ror tne considera¬

in

borrowed

action, it should
notifly the Council and furnish
copies of the contract and other

ments

for

NAC

the

as

has

gold collateral, but
recently the Export-Import Bank,
has with NAC approval of course, ex¬
on

lands in cooperation with a num¬
ber of commercial banks.
This

wise taken final

siderable attention to improving

sub¬

and

negotiations for

Just

record,

found it

Considerations

Council

ber

the

When the designated agen¬

(or agencies)

"General Financial

period there have been

that

4.
cy

records.

credit

New York

case

changes in policy.

Foreign Loans
The

the NAC and approved

actually got down

loan in accordance with the
policies of the Council, consult¬
ing the Council as to desired

any

NAC considers "ability to re¬
pay," it is clear, without much ii
any reference to past repayment

of

ing.
Now

3. Such agency (or agencies)
will conduct its negotiations for

foreign
Governmental

by it prior to the Savannah meet¬

have

prob¬

in NAC

the matter

before

summer

Note

countries

were

with

future friction

save

this

after being circulated among

and

credit

legislation
or

applica¬
expansion

billion

if the Congress settled

Bank, after

other

com¬

imminent

Bank's

year

ably

by the Treasury
representatives of

more

a

Import

that staff committee was the SEC,
of NAC.

been

not

pletely harmonious arid will prob¬
ably have to be straightened out
by the Congress either in connec¬

THE

Thursday, June 27,

COJMMERCIAL & FINANCIAL CHRONICLE

1946

Cabinet member who is
officio a member of Exporting that a certain credit should be Import's board of directors.
The State Department is fully
extended no longer votes to that

(Continued from page 3487)
objections: The NAC when agree¬

effect, but merely votes its "ap¬

the only

ex

this

of

aware

and

has

been

as

active as any other Government
proval of consideration" by the
Export-Import Bank of a loan to department in supporting the for¬
such and such a country of so eign-loan program at every oppor¬
BW, the
much for such a period and at tunity: Export-Import,
such an interest rate.
This is the United Kingdom loan, the French
pattern now being followed, with loan, and many others. State sup¬
face-saving for the Export-Import. ports the large credits to China

Martin and Eccles have

But both

suggested that it may be neces¬
sary to ask Congress to clarify its

which General Marshall advocated

when* he

last

in Washington.
long been ready to

was

And State has

start negotiations

intent.

of

view

Vinson's

all

course

for

with the USSR

$1 billion loan.

a

During NAC's discussion of the
then-pending French loan it was
of
Export - Import's
Advisory the State Department which con¬
Board.
In meetings Vinson has fessed that the amount and timing
along has been that the powers of
NAC are much broader than those

supported

been

this point by

on

of the loan announcement had as

political

the influenc¬

Harry White, who argues that pre-

one

consideration of an Export-Import

ing of the French elections in a di¬

purpose

and its staff com¬ rection more favorable to our own
Both
help rather than philosophy of government.
hinder Export-Import's work, and Secretary Wallace and Mr. Eccles
that in any case it is time enough opposed justification of the loan
to solve the question of jurisdic¬ on other than economic grounds.
tion when and if a real disagree¬ Mr. Wallace is presumed to have
ment between NAC and the board had in mind possible repercussions
the
Kremlin,
whereas
Mr.
of directors (as distinct from the in
loan

by NAC

should

mittee

of

Chairman)

Export

Import Eccles feared

-

within

tion

arises.

has been

There

ington

good deal of
of Wash¬

citing

been made of stern stuff.

abroad

In the
Kingdom and
poses.

Doubtless

consequences.

had

to

the

mind

in

paper

on

passed the scrutiny of NAC, politi¬
the French loan in NAC and since
cal
considerations
were
given
NAC operates on the basis of a
great weight by the Administra¬
it is certain
tion.
In the cases of the Chinese majority decision,

conclusions
on which have yet been announced
by the Government, political con¬
siderations
are
practically the
only ones. Surely no investor con¬
cerned only with a good invest¬
ment would risk his capital in a
long-term loan to the Chinese
Government under existing cir¬
and Russian loans, no

NAC

that either Mr. Eccles

has

there

Mr. Wal¬

being

alia, that the loans
sought from this country,

Thereby

they

recog¬

nized that intergovernmental loans

without

appreciable

an

element

would

be

political

self-contra¬

a

diction.

good
example of
a
loan
is
presented
by

Poland

to

sideration

in

under

was

the

con¬

Council.

This

rpiakes abroad,

are

announced

propositions.

So far as

can

be panied

learned, the NAC has given little
iflany attention or thought to the

livelihood of

of the

non-recovery

that

April 24,

by

was

$50,000,000

country

Liquidation

from

accom¬

credit

the

to

Foreign

Commissioner,

as

nfoney lent. The responsibility for authorized also by NAC.
The
tfiis must be shared by the Con¬ credits were extended to Poland
gress.
on condition that its Government
{For example, among the present
apd

prospective

borrowers

from

t|e United States Government are
n|any countries with default rec¬
ords.

The

agreed to

itself

Congress

ignore defaults

on

has
old

ldans made by the U. S. Treasury

supply the State Department with
that it would carry out

assurance

certain

conditions

the U.S.A.
was

a

stipulated

by

One of the conditions

free-elections pledge.

An¬

abroad, waiving Johnson-Act and other was the publication in Po¬
similar legislative provisions. The land of the American conditions.
rlAC in its interest-rate policy
Since the
does not differentiate between
borrower and another.

Polish Government did

is enough to identify the loans the
Government has been authorizing

not

give

the

State

Department

satisfactory assurances,
barely

a

within

fortnight of the Export-

political.
Import's
announcement
of
the
I The recognition of political con¬
loan the credits were held up.$
siderations in our wartime lending
to
is to be taken for granted.
But Following an announcement
as

the

Export-Import Bank has al¬ this effect by the State Depart¬
ways been engaged in lending op¬ ment, the AP reported from Po¬
erations containing a considerable land that the
political element.

pf

sufficient

their
no

legs,

own

reason

to

to

stand

trolled

there

have

an

economic

might be
Export-Im¬

risks.

press

on

port Bank; private lenders would
take the

Government

Were its loans

merit

withholding

much

special, i. e. political, interest to
this country. Congress in creating
and expanding the
Export-Import
Bank's lending authority has been
of

aware

Spch
used

an
as

policy.

the

political purposes
institution serves when

an

instrument of

foreign
The Secretary of State is




on

the
as

the Polish

The experience with the Polish
loan makes it

ed Export-Import Bank might be

credits

Government.4

Treasury, testified that

needed to make loans in areas of

the

"political pressure"

During

expand¬

con¬

attacking

was

of

the hearings on the Dewey bill in
1944 Mr. Harry White, then of the
an

and

timely to ask: How

political good will, and for

how long,

do

we

or

billion lent

or

longer?

tCf. N. Y.
4N.

Y.

country
making

even

Polish

announced
an

years

"Times" May

"Post,"
a

the

50

The question applies

thereafter

take

get per million

for 30 to

place
United states.

10 and 11, 1946.
May 22,
1946.
Soon
spokesman
in
this
that

the

USSR

was

bigger loan to Poland, to
of

that

withheld

by

the

responsibilities

us

in

a

world order.

To

greater

a

before

our

shaped by
and

to

than

ever

going to
with, controlled and
are

government. More

our

organized labor is going

more

be

extent

daily lives

be interfered

influence.

our

This

means

that organized labor with its con¬

ceptions of the rights of private
capital will have more and more
to say as to the manner in which

justice, but he

sublime code of ethics

a

freed

the

Jews

from

Egyptian bondage, died before he
saw

the Promised Land. Confucius

who

taught the Golden Rule to the
passed

proverty,
Buddha,
tolerance

away

before
obscure

in

each individual lives his life.
What

can

do

we

either to pre¬

for the fundamental changes

pare

which

just

to impend or to ad¬
lives to the changes?

seem

our

We

take

can

actual

an

part in

the making of the laws which will

disillusioned
man. interpret these changes. We can
whose
teachings
of actually become members of the
and patience have in¬
legislative bodies which will write
a

fluenced directly or indirectly one
half of the
civilized world,
al¬

though born a prince, departed as
a beggar. Columbus sailed the un¬
known

our

was

who

Christ,

shun

slavery. Moses, who gave

establish

and discovered

sea

Amer¬

these

changes into

our

laws and

of the

governmental departments

which

administer

we

do not

selves

fit to

see

with

those

actual

the

If

laws.

concern

our¬

origin of

ica, but because he did not bring
back gold to
King, Ferdinand, was
put in prison and' died in chains.
These immortals of history were

the

not honored in their

will get what we deserve—a

day.

These trail-blazers of humanity

followed

their

without

destiny

which

laws

lives

or

part

if

of

the

ernment

tional

then we
Gov¬
controlled by selfish, sec¬
laws,

groups

pressure

promise for good in the long years

most

Now with toil and

tears

the

world

is

stumbling

to¬

ward the

called

light, and you are being
upon
to help carry the

torch.

Let

clear

heads

fundamental
you can

sense

in

build

portion.

hearts

warm

search for
upon which
faith. You will

your

values
your

flexible
of

With

realists.

and

probe deeply

need

be

us

minds

all

fine

and

discrimination

Above

a

pro¬

and

you

need

patience.

special

Unfortunately,

groups.

men

enforcing

privileges for

do not

even

bother giv¬

being gov¬
erned; they accept things as they
their

ing

to

consent

are.

Scores Laxity
This

laxity

afford.

cannot

we

be in
and his

Evil forces there will always
the

world—if

gang,

Hitler

not

Our

then their prototype.

task is not to eliminate evil

but to

make the forces for

that

evil

dictators

will

be

come

on

good so strong
impotent.
For
the stage only

when conditions are ripe

The Citizen's Indifference

our

whicjh

Government
those

laws creating special

that lie ahead.

control

refuse to become a

we

administers

will

reckoning the cost. The wise man
plans his life for that which gives

one

This alone

was

Chinese five hundred years

Another

loan

tradi¬

crusty

forced to drink poisoned hemlock.
tried to remodel the earth

mankind

Export-Import loan of $40,000,000,

sound economic

challenge

Plato

source,

did.

both

at
lCast those which the Government
or

to

tion in his search for wisdom

sold into

apparently
Poland.
This is so obvious as not
some self-deception on this score.
The State
The lending program, piece by to require elaboration.
piece, has been sold to Congress Department made it clear to NAC
at
the time
the
Export-Import
and the public on the grounds,
inter

nearly 2,000 years His
message
provides
the
greatest
hope for mankind. Socrates, who
dared

crimination, industrial strife, cor¬
ruption
in
public
office; and
against those who would have

am¬

after

but

and

firmed

always

bassador of good-will to men, died
on the cross at the early age of
33,

uncon¬

According to an
but
trustworthy

have

progress

Christ, the world's greatest

the end.

political

been

or

human

lace voted for the French loan in

Yet even within the

cumstances.

(Continued from page 3474)
of

States in Latin America and their

Eccles
Nazi
government loans
activities in Argentina which this
for political pur¬
Government released prior to the
cases of the United
recent Argentine election.
French loans, which
Since Mr. Martin voted against

discussion out
as

made

a

Let's Save America!

reac¬

itself,

other recent actions of the United

Political Loans

unfrank

undesired

an

France

America

found

herself

for them.
at least

temporaily in the great crisis of
Today's the disturbing fact, as 1 the war; it will find itself in the
it, is the indifference of the crisis of post-war conditions.
typical American citizen to the
Things are turned upside down
danger threatening our own form
but things are not without hope.
of government and our own way
Practically all volcanic upheavals
of life.
of the past were accompanied by
And because I believe that the
great developments—the birth of
receptive
minds
of
educated
Christianity, the Renaissance, the
American youths are a fertile field
see

in

which

to

sow

seeds

of

civic

hope, I should like to leave a few
thoughts
with
you
concerning
present problems.
The preservation of the Amer¬
ican way of life is not necessarily
assured by the winning of war.
We must defend it against the
cynics who would destroy our
ideals and paralyze our aspira¬
tions; against the Utopians who
advocate
our

those

Reformation,

who

system;
against
promote racial dis¬

Crusades,

the

So like¬
young men and women
with open minds have a fine op¬
portunity, but it calls for adapta¬
tion to change. You will have to
be able to meet the acid test and
now

deliver the goods. You will not
able to ride on the coat-tails
your

be
of

ancestors.

People Are Without Definite
Policy

plans that would wreck

economic

the

Golden Age of Literature.

wise

People
are

are

in

a

groping their

and
toward a

mental fog
way

Number 4502

Volume 163

goal with aspirations and hopes,
with no definite policy. With¬
out definite policy and an intelli¬

wish

gent

term

with

cooperate

There is

understanding of economic

laws

to

whose ideals

but

those

opposed to theirs.

are

sentiment for what

no

policy

trend of more and

the people may become the

We do not yet seem to have come

ties,

lead them into dictatorship.

that

of

The

it

idle

is

to

talk

about

the growing participation

nor

labor

in

powerful public into constructive

Government, but
there prevail the if educated and trained young men
fundamentally give of their time, pleasures, and
different ideals—communism and satisfaction by actually becoming
democracy.
They represent two a part of the Government, you

channels. Otherwise, we may find

opposing

the course of time the mis¬
directed voters may unwittingly,

one

responsibilities upon men of in¬
tremendous

are

for

they

the opportunity to direct this

have

that in

ruthlessly,

but

down over our

pull the
heads.

temple

This calls for a more sympathet¬

understanding of the aspirations
the
people
than
has been

ic

of

evident during the past few dec¬

Following

ades.

an age

of special¬

world

long

as

one

our

as

two distinctive and

Belief

of life.

ways

of

makes

the

other

an

in

un¬

will raise the standard of
of

compromising enemy.
There are
groups in this country who call
themselves
idealists,
liberals,
champions of the common man,
who

admire Russia

has

done.

These

effect this change

can

is

idealistic.

build my

hope

that "if

person

insist

men

the time he is

on

rights for all
the

to

cases

some

Youth

what she

and

equal liberties and
—in

politics,
Government, of law,—of living

itself.

youth

point

of

a

upon

for

Therefore

it.

holds

larity—significant, because it re¬
deep uneasiness of pro¬
gressive politicians -everywhere;
pathetic, because popularity in the
long run will come only to those
politicians who have the courage
to do the immediately unpopular
things.
To those, who are old
enough to have observed over
more than thirty years the steady

ment control of individual activi¬

to full realization of the basic fact

I

It is said

is not Utopian by

21, something is the

matter with his

over

one

that

other social

all

is

state

the

which

supreme

institutions."

There has therefore been no ef¬
fective

to the

challenge

is

not

the

last

merely the

political

Government

claim that the central

refuge of

oppressed but the normal in¬

strument of social

progress.

Politicians asking

for votes have

thus

been, at a time when votes
meant everything to them, placed
deterioration of society—not only under very great temptation. They
in its material standards but above could offer anything because they
all
in
its political
security, its were believed capable of provid¬
social relations, and its spiritual ing everything. That the best Gov¬
vitality—it is more than difficult ernment will come from wise men
in
the
immediate
to understand this continued pref¬ disinterested
erence
of the political mind for consequences
of their decisions
the easy and popular course which has been a truism from the time of

heart; but if he is
so
invariably and demonstrably
the time he is 30,
leads
in a
very
short time to
something is the matter with his

still

should become fashionable

flects the

Govern¬

more

far proposed is said to

so

be the search at all costs for popu¬

tive office. You cannot change the

we

"live and let live" attitude.

a

Enter public life yourselves, either
in elective office or in administra¬

tools of the demagogue who could

tellect

3489

THE COMMERCIAL & FINANCIAL CHRONICLE

by

Plato.

why I urge you men of
have failed to grasp
to
take your part in
It is even more strange education
the significane of social forces at not understand why these advo¬ head."
But idealism should rest disaster.
work and their cumulative effects, cates of Marxism do not realize on a practical foundation and be that the inevitable reaction of the Government, to serve the country
which needs you in peace just as
with the consequence that we are that their own activities would be set
against
the
background
of peoples themselves against the
absolutely impossible under the everyday living. Otherwise, wish¬ manufacturers of deceptive slo¬ truly as it ever needed you in war.
now called upon to make within
Remember in passing that there
ful
a few years the
adjustments that Russian system.
thinking
merely
leads
to gans and the advocates of panace¬
are
two
kinds of darkness—the
as always takes the politicians by
would normally take a generation.
cynicism and disillusionment.
Russian System Wholly Incom¬
twilight that comes before the
surprise.
On the other hand, many of our
It may seem to you that I have
black of
patible With Our Ideals
night and that which
Sociologists would be well ad¬
colleges
and
universities,
and
been
painting a bleak
picture.
There
could
be
no
strikes
vised
if they turned from con¬ precedes the dawn. It is for you
especially social reformers, have
However, crises sometimes create
to
carry
the torch which will
promoted theories and programs against employers; a ruthless gov¬ opportunities. The Chinese, have structing graphs of the rise in
usher in the dawn of a stronger
There a
nominal
that are not only utterly unwork¬ ernment is the employer.
wages
to
constructing
phrase which is used as our

ization,

we

able but

beyond the economic

are

could be

agree

Economy

Impaired

Mis¬

by

guided Social Reformers

Accordingly, at
nation's

a

economy

no

ceiving the fullest volume of

pro¬

I

can¬

free discussion of gov¬

with the government would
Under

become victims of a purge.

Russian

the

time when the
should be re¬

me

policies; those who dis¬

ernment

capacity of the country.
Our

For the life of

license.

these

that

groups

every

ruthlessly
Russia

would
be
Admiration

in

lieve

ideal
profess to be¬

system,

crushed.

for

word

"crisis" is used. But broken

down into its two

parts this phrase

graphs of the rise in the sum total
of human misery
over the
last

A fifty years and to publicizing the
direct relation between the growth
but
the very fact that it exists is an of human misery and the growth
of centralized political power over
opportunity to someone to set it
the lives, beliefs, and fortunes of
right. Times are out of joint, but

means

danger and opportunity.

crisis

is

that

in

a

serious

itself

situation,

constitutes

chal¬

a

individual worth
totally incompatible

men.

and belief in the

duction,
employing
the
largest
lenge to you
Civilization hangs
of man are
army of wage earners in history
in the balance, but if you apply
points of view. Never forget this that same realism, vigor, and high
at the highest rates of pay, we
when
appraising
world
find
widespread unemployment, truth
courage to the waging of peace
wholesale loss of wages through philosophies.
that you and your older brothers
After all, society rests on an brought to the waging of war, you
strikes, loss of earning through
stoppages of production and shut¬ implied contract that all groups can and will tip the scales on the
down of plants. In ordinary times will sacrifice selfish interests and side of a better humanity.
this
would
foreshadow
a
deep cooperate for the well-being of
No group through concerted
Politicians' Overemphasis on
enduring depression. Fortunately, all.
these
are
not
Popularity
ordinary
times. action should have the power to
There is urgent potential demand hurt the remainder of a nation or
May I, in closing, leave with
for goods which, if unimpeded can of society.
When any group can
you this diagnosis of current con¬
keep our factories and mills at with impunity threaten the health,
ditions—it may help you to at¬
capacity operation with full em¬ safety, and welfare of society, we
tack the enemies of Public Wel¬
ployment for a long period of are back on the road to barbarism
fare.
The most significant and
time.
That hope alone forestalls and savagery.
pathetic feature of every public
a
loss of morale on the
part

of

people which would in itself
depression.

our

create
A

of

return

and

to

sense

common

law makers

our

law ad¬

our

ministrators to prevent

labor pres¬

business excesses or para¬
lyzing taxes from eliminating in¬
sure,

centive to invest in America's fu¬
ture

can

preserve

our

of

means

livelihood.
With

its

It has provided us

individual

standard

the

defects,

system is the best yet

devised.

found

of

all

American

freedom

of

and

a

living than

with

higher

is to

be

anywhere else in the world.
democracy

Private enterprise and

hand in hand. They

go

fall

and

In this

of

country we see

ping

in to

functions

control the economic
distribu¬

rela¬
tions of employers and employees.
The restlessness and uncertainty
that contribute to changes of this
kind have grown out of the break¬
down in the traditions and ideals
that formerly regulated our lives.
Divorces and broken homes are
on the increase.
To a great many

This is under

the

consumption,

teachings

a

Not

a

far

cry

to

the

people

young

from the conditions
every day.

and

general¬

that the whole of
this fatal sequence of events has
been due to the desire of politi¬
cians

to

as a

say

class for quick popular¬

730

Co.,

Exchange, have announced
Douglas has become
associated
with
the
firm.
Mr.
Stock

that

Leslie

Douglas

member of the in¬

was a

management committee

ity, but it is certain that this has
been a major contributing cause.

vestment

without sowing,
to consume without producing, for
salvation without suffering—these

New

things are natural to men. What
is new in history is that, just at
the time when the rule of the

joined the U. S. Navy in 1941

The desire to reap

men

passed

has

state

whose power

everywhere to
and fortune de¬

pend on their retention of
office,

theory

a

of

public

statecraft

of

the

and

Royal Liverpool Group of
from 1937 until 1941

York

prior to that time was associ¬
Dodge & Co. He

ated with Clark,

was

no

solicitation

circumstances to he construed as an

of

an

offer to buy,

any

The Need for

to

Our

of

the

He

division
nance.

was

released to inac¬

duty with the rank of Lieu¬
tenant
Commander
after
five

tive

years

of naval service.

June 27, 1946

New Issue

(a New York corporation)

realistic
You

our

col¬

Common Stock

universities have failed

for a
approach to the world.
young

prepare

have

not

offer to buy, or as
of the Prospectus.

offering of this Stock for sale, or as an

of such Stock. The offer is made only by means

Realism

and even

schools

people

been

taught

($io

par

value)

that

alternative.

you have an obligation to live up
people, if they to the best in American history by
their heritage of taking part in the public life of
liberty and freedom, to shape your country. Men without train¬
their own lives, must unite on ing in economics, without educa¬
the fundamental issue of saving tion in political science, without
private enterprise and democarcy, perspective or balance direct the
and they must do it for them¬ future
of this
country because
selves.
they are the only kind who take
the trouble to participate in public
The World Picture

So the American

desire to preserve

So much for

political conditions
about the world

Price $16.50 per

affairs.

home.

hack
of

many

the

and

The eyes

centuries.

world

are

turned

to

the

leadership
for help. Are we prepared for
responsibility? Are we facing

American
the

What

people

for

the future with sufficient realism
to

recognize what is demanded

us?

of

Don't merely

labor's rela¬
tion to business and labor's re¬
sponsibility to the public and the
obligations to settle wage and
work disputes in the public inter¬
est. The right to petition Congress
with. your views on public mat¬
ters
is
a
constitutional
right.
calculated

Never

we

ready

to

accept

upon




writers

be obtained from any of the several under¬
underwriters are qualified to act as
which such Prospectus may legally be distributed.

only in States in which such

dealers in securities and in

The First Boston

Corporation

to govern

was

its

exercise

Lee

Higginson Corporation

George D. B. Bonbright

Sage, Rutty & Co., Inc.

Laurence M. Marks &

Co.

Auchincloss, Parker & Redpath

Sutro & Co.

more

the
us? If so, urgently needed or more wel¬
comed by Congress itself.
we really need to understand the
Vote upon
every question of
Russian philosophy. The Russians,
as
I
recently emphasized in a public interest submitted to you
when you become of voting age.
study of foreign policy, have no
Are

leadership thrust

share

Copies of the Prospectus may

criticize these of¬
ficials. Oppose them and all they
picture, because today America is
stand for by voice and by vote.
concerned with world affairs.
The lamp of liberty is burning Write to the President and to Con¬
expressing your opin¬
low in the world today. The clock gressmen
of social progress is being turned ion of the various pending laws
at

& Co.

and

in the rocket
Bureau of Ord¬

duty

assigned

Timely Clothes, Inc.

they have

face

private enterprise, then all forms

no

C.—Folger,
Fifteenth
Street, members of the New York
WASHINGTON, D.

90,000 Shares

of

religion have come to seem a

leges and

is

It would be too easy a

will rise

activity will be regimented un¬
Governmental control. There

Folger, Nolan & Do.
Nolan

ization

With

evidence

of production,

and

tion

together. If through un¬

der

Leslie Douglas

movement toward compulsory

a

legislation or the imposition
of intolerable burdens we destroy
of

better world.

methods. Government is now step¬

wise

'

That is

Pacific Company

of California

Little & Hopkins,

Inc.

State Control Venus Sell-Control
(Continued from page 3474)
under way for nearly 30

been

provided the people

years. It has
with
some

protections
which they like. It has subjected
them, particularly in their youth,
to intensive propaganda. It has,
through secret police and censor¬
ship, detected those who thought
independently, and forcibly re¬
social

normal place

moved them from a

in society.
is

The result, it is claimed,

homogeneous, docile and pro¬
ductive mass which has peace and
a

has peace because
discordant thinking is eliminated
before it can lead to discordant
It

security.

It

action.

security

h^s

because

planned productivity is imposed.

grossing human problem
is

to

Soviet leaders
wide

seek world¬

now

acceptance of

their system.

everywhere

They

want

ments

which

govern¬
democratic dic¬

are

tatorships and which will eradi¬
cate

leaders
urge

consider

comes

There

is

desire

to

There

that

ing

human

unrest

away

world-wide

will

almost

are

where scarce.

There is much

starvation and

tual

There

tion.

every¬

is

ac¬

priva¬
surplus; no

severe

no

those
areas, interruption of production
and transportation, and unequal
margin

survival.

for

distribution

available

of

stocks,

immediate death to

almost

mean

In

those unfavorably

affected. Under
those condtions, there is no great
interest

in

spiritual,

intellectual
political freedoms which men

and

neither

eat

nor

of

living and they question
whether they can best get that in
a free society. They ask: Will not
individual freedom inevitably be
abused or used so thoughtlessly
as

to

wipe out

our

But

slim chance of

survival?

guidance in answering that
question they look in two direc¬
tions. On one side they see the
full

80%, plus a goodly fraction
to be the free 20%,

that

of what used

tending to follow the Soviet

are

experiment.

is

promote

the way

to assure production free
interruption from strikes or

of

so-called

The

shut-down

who

individuals

from

or

their

allow

personal desires

of

Austria and

only way to prevent their labors
from

being

It

undone.

does little good to have destroyed
the mosquitos on your own land
if

they are breeding in surround¬
ing lands and flying in.
The
Soviet

purged

ithose

Union

cannot

of freedoms
freedoms

be

if

majority

elsewhere

iron

On

the other side

challenge
stems
is

attracts
bold

from

to

on

freedom

the

formidable.

because

attack

Soviet

In

its

of

part,

new

unsolved

it

and

social

problems. In part, it frightens and
alienates
because
it
employs
abroad, as it has employed at

home, methods of coercion

and

of

unscrupulous propaganda. But the

challenge is formidable principally
because societies of freedom have

developed weaknesses which have
caused

in

a

widespread loss of faith

them.

United States. Our society of free¬
the

is

society

only

able

to

produce

liver

what

is

needed

the

in

of

world

de¬

and
to

save

humanity from extinc¬
tion. Also, our free people give
generously to impoverished
peoples abroad without regard to
repayment. It might be thought
that
that unparalleled perform¬
others

attract

would

ance

to

the

of freedom. That, however, is

way

not the case.

recent

over

Others observe that,
years,

we

have been

human freedom and
increasing the area of political au¬
thority. They also observe that
such personal freedoms as remain
restricting

often

seem

to

be

abused.

Most

foreigners see us as a people who
themselves
while
others

gorge

starve and

Weakneses

as a people whose sel¬
quarreling interrupts the pro¬
duction and transportation upon

fish
of

Free

Those weaknesses

Societies

are

primarily

in the field of economics. In much
of the world, indeed in most of
the

they see the

much

That

But

intervenes.

Foreigners Misunderstand Us

purge.

Union

curtain

tery makes it, to many, the more
glamorous and the more tempting.

dom

The Soviet Challenge to Freedom

general

some

the very fact that the Soviet ex¬
periment is surrounded with mys¬

Thus,
Soviet leaders feel it necessary to
try to bring others to join in the

which

with

world, there is

a

single,

en-

which

millions

survival. That is

depend for their
an unfair picture,

but there is enough

make

freedom

truth in it to

seem

a

rather

countries

these

in

while reducing economic freedom

through state socialism, will still
preserve a considerable measure

spiritual, intellectual and polit¬

But it is

encouraging.

certain that
this compromise will succeed, and
even if it does, it still leaves free¬
by

no means

dom with but a

precarious hold in

the world.

What is the explanation of what

plan.

kept

rife.

are

Hungary indicate that

wants to find a compromise which,

that in

home

Europe,

Britain, France, Belgium, Holland,

the

seek a world-wide
their system as the

interfere

to

Democ¬

Western

which were a
major part of the free world, are
not yet disposed to go all of the
Soviet way in abolishing human
freedoms. Post-war elections in
racies

compelled to

and

taken

lands,
have
cise

place?

It is,

basically,

land and in other free

our

individual human beings
increasingly failed to exer¬

the

self-restraints,

self-dis¬

self-sacrifice which
are necessary
if individual free¬
dom
is to be socially tolerable.
Mr.
Vishinsky,
in
a
powerful
speech at the Assembly of the
United Nations, went to the heart
of the matter when he said: 'It is
cipline

and

indispensable
tion

to

bring

the will and

to

*

of men.

*

limita¬

a

the action

to

* It is impossible not

to limit the action of

and the

man

action is limited by laws."
We all agree that the exercise
of

human

freedom

must

be

If

a

limitation

must

primarily
be
self-limitation. A free society, of
course,
has man-made laws. In
this

country and
what

have
law."

nothing that

in

call

we

What is

England,
the

we

"common

It is

law?

common

find in the
statute books. No "politburo" de¬
you

it. The

creed

can

is

law

common

un¬

written law. It is custom. It is the

standard

conduct

of

which

the

majority have already vol¬
untarily adopted to control their

great

behavior.

own

Also,

have many

we

of

course,

statutes. But in

right and

would

do

any¬

controls

the

of

fundamentals
in all

our

moral

of

Hebrew

the

Ten

The

Hebrew faiths.

faith

has

given

Commandments

us

which

perhaps the greatest expres¬
of the concrete applications

the

of

law.

great religions, notably

The

are

free

a

that law appear

the Christian and

sion

of

the acceptance by in¬

are

dividuals

Capital Stock

moral

law.

The

Christian

faith has added the broad injunc¬
tion "thou shalt love thy neighbor

thyself"

as

Price $3 Per Share

would that

"whatsoever

and
men

ye

should do to you,

do ye even so to them,

for this is

the law and the prophets.". Thus,
the Creator who endowed
men
with

Kobbe, Gearhart & Company
INCORPORATED

Members

45

New

NASSAU

York

Security

STREET,

Dealers

NEW

TELEPHONE

PHILADELPHIA TELEPHONE

KEctor 2-3600

Enterprise 6015

June 26, 1946




YORK

should

5

New York l-57i

which

inalienable

rights

be

used, not selfishly, but

for

that

flabby.

has

too

often

memorizing of
facts which, it is hoped, will be of
practical utility. Our system of
mere

education has

largely broken con¬
tact with the gerat faiths and be¬
liefs

of

the

past

with

and

the

great teachings of the moral law.
Our people have more and more
to

come

office

of

what

that

assume

is

holders

little group

a

decide

will

on

right and spell it out in

statute

law

that, as long as
they do not violate such manmade laws, they are free to do
whatever they please. Under those
and

conditions,

freedom

license and

it rapidly

becomes

freedom, but
to

come

we

have

our

use

own

freedoms in ways which, to others,
to

seem

to

show

that freedom

disorder which the

a

its

weakened

leads

world, in

condition,

cannot

There
the

challenge

rises

about

trates into
met

who believe that

are some

by

to

economic

have

it,

power,

to

crush

infil¬

be

can

violent

have

would

preponderant

our

midst,

own

sort of

They

which

which

and

us

our

some

action.

freedom

re¬

us

use

military and
while we still
out those who

lead the experiment against free¬
dom.

That is folly. If we des¬
troyed the present Soviet leader¬
ship, that would prove nothing.
cannot

be

saved

excepl

actually displaying the
restraint, self-control and
sacrifice
make

which

freedom

selfself-

needed

are

socially

tc

tolerable.

We must demonstrate in the pres¬
ent what our forebears
demon¬

strated

in

vidual

human

the

gloriously

past

—

that

indi¬

freedoms

can

mankind.
If we dc that, the cause of free¬
dom will regain prestige in the
serve

of

history.

shall

We

be

Self-Control

State-Control?

or

That is where

you

in. Nc

come

doubt many of you are perplexed

worried

world, but

nothing
so

you

which
The

do.

can

at

the

conduct

ual

is

a

the

of

feel that there is

individually

you

forces at work

stupendous that

That

state

seem

individ¬
unimportant.

your

seems

form of de¬

dangerous

featism. Actually, the struggle we
are engaged
in can only be won

by individual action. The heart of
the problem is, will the individual

be

self-controlled

or

must

he

be

state controlled?

Only individuals,
by their individual conduct, can
give the answer to that question.
You who graduate tonight have
been training your minds so
you

can

others

of

perceive
what

the

you

do

that

effect
or

fail

or

to

do.
You
have
grown
up
in a
religious environment. You know
or
should know, what the moral

a

good blow for the

cause

This is not

compulsion

exercise

self-restraint

sacrifice.

It is

and

to
self-

dangerous to give

this

whole,
ex¬

unwell and go to

you are

he

few

a

a dentist,
probably take something

will

out of your mouth. If you
go to

a

dietician, he will probably take
something out of your diet. If
to an official, he will prob¬
take something away from
freedom.

you go

ably
your

Of

our
modern, com¬
interdependent society

course,

plicated,
needs

central

guidance than
simple society of the
past. But that does not mean that

did

more

our more

state-control is any substitute for
self-control. Rather, it

that

means

the price of freedom has gone
up.
Under modern conditions we need
not

less,

That

is

but
the

self-control.

more,

that

lesson

be

must

driven home.
The

Great Moral

Most of those in

ity have
ter.

to

Issue

f

public author¬

blind spot in this mat¬

a

Because

failed

of

that,

they

have

that the gerat issue

see

of
our
time
is
a
moral
issue,
namely, the acceptance by indi¬
vidual human beings of the dic¬

of

the

the

law.

moral

they have not

Because

that that

seen

was

of the world-wide strug¬

crux

they have not been able to
explain to the American people
why, despite our overwhelming
gle,

military victory over Germany
Japan, our society of freedom
is still in jeopardy. They have not
told our people how each of them,
individually, could act to save
and

freedom.
The

official

of

lack

leadership

need not be fatal. The

genius of a
society is that it rises su¬
perior to its officialdom. We have

free

which

education

dependent.
directed

It

is

is

which

in¬

and

free

not

propaganda.

churches

stateWe have

yet

and

free

are

independent.

They still assert an
authority superior to that of State.
It is through churches and schools
that a free society keeps itself
free.

Through

people

the

them

selfcontrol.

learn for themselves how by

to

control

one

can

struggle

a

be

struggle where
neutral.

where

It

anyone,

is

any¬

not

win
to

physically and spiritually safe.

under

moral

in

the

on

state

avoid

self-sacrifice alone enable men to

tide

the

of freedom. If you do not, you will
have been a traitor to that cause.

dangerous to

are,

who, with

men

They learn that self-restraint and

riding

are

give
freedom to people who do not feel
a

is

leadership

They

in

by others who feel they

struck

It

give

battle.

those

command

world.
We
shall
no
longer be
dangereously crowded and jostled

educated,

freedom.

take

to

and

tates

stand.

not

much

public

rely
office to

evaporates.

and

cannot have

upon

this country we are still offi¬
cially committed to a world of
freedom, and we still talk a great

actually

themselves.

We/ cannot

In

deal about

people who have freedom

will have to win it for

ceptions, honestly believe that the
best way to solve every
difficulty
is to increase their own power.
That is their stock in trade. If

education
a

struggle for
peacefully won.

and

Today
those
We have a
great deal of so-called education,
become

the

be

can

puritanism

freedom.

are

But the

us.

that

know

honest

their moral muscles for the strug¬

gle

all of

means

We

the

about

char¬

were

law commands. If you apply that
knowledge in your daily life and
daily
conduct,
you
will
have

regard for others.

by the conduct of all who have
freedom. That, in this country

last century.

society which is not religious
which, in a broad sense, is

A

BELL TELETYPE

certain

also commanded that those rights
with

Association

years, have
self-control and

the austerity of the past. But that
was the way our forebears trained

and

basic

our

a

free society these, too, are a codi¬
fication of what the great majority

society

Television, Inc.

because

recent

over

acteristic of the

laugh

society of
prestige in

its

by

"The

Radio &

people,

Freedom

The point is, by whom
what, shall it be limited?
society is to be free, the

can
say
that what he
unimportant. This is a
struggle where freedom is judged

is

does

freedom

our

lost

primarily

the world is

limited?

way.

99,000 Shares

has

freedom

Self-Control

why

reason

and by

thmks

NEW ISSUE

The

but

Encouraging

has

of

Democracies' Elections

Western

ical freedom. That is

of

Our Loss of

1946

obscure,

I

muscles

of

are

of what they do. An
irreligious and uneducated people
inevitably falls under despotism.

others

on

self-restraint

found

Its leaders

and understand the effect

see

can

ganized groups. About 750,000,000
dependent, colonial peoples,
who took leadership and guidance
from
the free
societies. Today,

were

of confidence.

They claim to have
in their dictatorial system

freedom to people, who are not
sufficiently educated so that they

lost much of the

Those
claims
cannot
be
tested against the reality because

extension

were,

basic.
on the

Thursday, June 27,

whole, ineffective and poorly or¬

the

For

deem

we

80%

other

the

security.
But the principal reason why the
Soviet program is world-wide in
scope is that Soviet leaders feel
peace

which

freedoms

Men

wear.

uninterrupted
production
equitable distribution of the

means

fectively had, and exercised, the

Soviet Union.

it

if

fuel

and

plify. That kind of a society, as
I have said, was always a minor¬
ity. Probably not more than 20%
of the population of the earth ef¬

it

cause

that

and

it

of

frightening thing to those who
no margin, for survival.
So, under the influence of those
two examples, the trend is away
from the free society we exem¬

have

an

is

individual

human freedom is a basic

taken

the

surround

states.

belief

na¬

enlarge

to

and

satellite

honest

sources.

understandable

Soviet Union
with

dangerous. That

from several

an

tionalistic

Soviet

which

freedoms

the

World

two

Wars, the
material wastage and dislocation
have been such that food, cloth¬

and

Acceptance

alive. As the

keep physically

result

want

Soviet Seeks Worldwide

that

—

elemental problem of how

the

can

at

CHRONICLE

THE COMMERCIAL & FINANCIAL

3490

a

however

and

spread

keep their freedom and
the gospel of freedom

throughout the world. You have,
I hope, learned that lesson. From
you will increasingly have

now on

to live it.

Every day will test you.
May your response be such that,
in the words of our Constitution,
will "secure the blessings of
liberty
to
ourselves
and
our
you

posterity."

New York Stock Exchange

Weekly Firm Changes
The New York Stock Exchange

firm

has announced the following

changes:
Mabon
ner

Kingsley, general part¬
will also be¬

in Mabon & Co.,

come

limited

a

partner

effective

July 1.
Charles F. Coaney, general
ner

part¬

in

will

Butler, Herrick & Marshall,
become
a
limited
partner,

effective July 1.
James S.

Bush will

retire from

partnership in G. H. Walker & Co.
on

June 30.

Interest
West

in

ceased

of

late

Harold

Struthers

&

B.

Co.

June 21.

Interest
Rice

the

Wood,

in

of

.he

Daniel

ceased June 8.

late
F.

Walter

Rice

&

T.
Co.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4502

J/olume 163

3491

Brand Names and Free Enterprise
tastes

(Continued from page 3477)

concluded

just

we

are

privilege

Herculean

a

intimately his

as

as

own

the affairs of his

are

Civil War, are really capable of
producing in endless quantities.

marital life.

struggle.
it may, we have seen

With

and bureaucracy set¬
scales, working rules,

"If

names,

Be that as

this

vocabulary

of

brand

the

today

manufacturers, who

the

dominant

This Announcement is not

element

the

development

and

merchandising

profits and prices. On the pro¬
duction front, the owner and man¬
ager has already been knocked
out of the fray. They stand grog-

as

permitted to maintain their lead¬

gily on the side lines while the
other two battlers fight it out.
If there is any doubt in your

store, at home

rnind about the accuracy

hesitation,

wage

ting

confident,
efficient,
breezy in their shopping as they
like to

invited

was

to
ho¬

heels in Washington

cool

its

tels

until

fought

had

tenders

heavyweight

the

it

con¬

the

average

consumer,

enterprise system,

tive

the

operated,
tion

could

referee.

sovereign

it once

American

average

was

out

competi¬
as

Corpora¬

slug it out with cor¬

poration, but in the end produc¬
tive process, employment stand¬
distribution

and

ards

Mrs.

and

Mr.

methods

the willingness of

had to cater to

America

to

buy

of

ready

that

Competition

gone.

duction

becomes

costs

is al¬

sovereignty
a

in pro¬
travesty

when

major elements of cost are
fixed by labor monopoly and gov¬
But the

in

loyal

the

of

standards

over

quality

and

of

improvement

technological

products, through competition at
the market place. As long as the
public

against

manufacturer

pits

manufacturer

the

in

of

arenas

brand identification and advertis¬

ing, it will continue to have some

the economic
brand names com¬
petitive system is very nearly all
that is left of free enterprise.
sovereignty

over

The

process.

At first blush it may seem pre¬
tentious to call the signing of

ads,

products—the sim¬
plest step of advertising and mer¬
packages and

chandising—to

director

art

an

matter of dropping a slug
a layout—it may

a

at the bottom of
seem

pretentious

"a

that

call

to

system."

an

revenue

for

Yet—when
taken—it

evitably
if

objective view is
impressively

an

becomes

embodied

is

philosophy

in

publishers

did

All

Ameri¬

and trademarks
continuing
symbols of

the

that

tie
producers to users of
goods. Their very existence main¬

tains

a

moral element

strong

in

production.

Through these symbols any con¬
sumer can hold any manufacturer
specifically and directly responsi¬
ble for the quality and integrity
of the products

With

does

brand

pit

he buys.
names

he

public

power

of the brand name system

keeps scientists

and

technicians

working overtime in their labora¬
tories to raise American living
Freedom of brand selection and

rejection is
that

the

owes

to the practice of
the

Foundation

Names

a

proud confirmation
tastes

individual

of

any

chair¬

A. O. Buckingham, not long

man,

"the best
devised."

called

ago

system ever

consumer

of

the con¬

power-hungry group
is inherent in this pattern of dis¬
tribution— this
last bulwark
of

enterprise—that one cannot
conceive of its being to the liking

contending for absolute

of anyone

economic

ultimate

supremacy.

much that is essentially re¬

and

distinctive

choice.

by

If

he

anyone's

Undesirable,
personal

aspects
of
his
a brand that

likes

may

be

strictly

his

standards
that

is

business.

His




brand

today,

the needs of

That

losophies.
crystal ball—and I'm

no

the

between

control

for

ven¬

big

the
over

the

con¬
pro¬

has stabilized, and
the supply of goods begins once
more to approximate the demand,
ductive process

big

guns

will

brand

The

once

processes

our

on

both contending

of

name

more

be turned

of distribution.
and ad¬

system

because, in
measure,
history is

"once more"

say

repeating itself.
world

war

was

production system then,

our

over,

first

the

When

had undergone unprece¬
dented expansion.
Labor leader¬
as

now,

in the present instance,
was fighting to advance its power.
The postwar wave of strikes is
well remembered.
At that time,
the American collectivistic move¬
ment was comparatively in its in¬
ship,

as

fancy,

still nestling for the most

part, in the ivory towers
demic institutions.

As

sonably
cry
was

as

As

hue

and

went up that our distribution
bad.
It cost too much. The

It

being confused.
with the collectivist

was

consumer

started

minded

group,

who had found a

cause.

1926, Ralph Borsodi wrote,
"The Distribution Age":
"The Golden Age
is past.
us

in

of production

The age of distribution is
.

.

.

Under the stimu¬

(World War I), Amer¬
ican industry discovered that its
facilities for production,
labori¬

during the half
century since mass and standard¬
ized production started during the
ously

improved

Certificates) issued with respect to Bonds
of Series'C.

of

various

less than

For

the Offer,

forecast.

that

was

what hap¬
of

costs

(2)

New

the economic process—but
was

equals

The

twenty-seven

the

saw

Money's

"Your

Schlink,

by "100,-

followed

soon

of

Chamber

American

In

other

and

volumes

of

a

and

Un¬

Consumers

Consumers
Research
and
organizations, moving toward
concept of arbitrary grading
mandatory classification of

other

the
and

into being.
Labor leadership, lacking

goods,

the

of

issue

conditions

wages,

im¬

an

working
on

that

It

well

is

to

leader

labor

a

with

enthu¬

remember

has

six

When attempts to arouse
strife in the factory become tem¬

there must

be

ment

to advance govern¬
control over advertising and

attempts

ment
to

brand identification,

submerge

during the NRA dominance
industry
war

again

and

agencies,

were

over

through the
not too suc¬

cessful.
But it is not

the purpose of this

You are
narrative—in¬

history.

on

this

familiar

with

cluding

the wartime efforts to
grade labelling as buy¬

establish

for apparel

ing guides

and food

Halleck Committee.

that the attack on
of
competitive
distribution has had a strong mo¬
mentum
and
that
the
motive

to remind

you

institutions

our

for its

exists

even

more

vigorous

propulsion in times that lie ahead.
Will "Grade

Labelling" Be

Revived?

some

is

disposition

a

the

in

with

the failure of

struggle

concentrated;
that

think that be¬
for power is
other
sectors,

observers to

cause

perhaps

efforts

to

among

effectuate

wartime

grade labelling, the attack on the
brand names system and advertis¬
ing practices are at an end.
Don't let a "phoney peace" de¬
First of

all, the cultivation job

"day by day—in every
way," as M. Coue used to say.
Any women's organization lead¬
er
can tell you that the week is
rare
when a spokesman for the
"new
consumership" propaganda

goes

$1000

Bond

of

Series

on page

economics
3492)

under

the

Offer

shall

accepting the Offer will be
five coupons due January 1,

Bonds
of

tne

Bonds of Series A and C (as to which
the 1936 plan), cash payments as follows:

the

to

$

500

Bond

of

Series

C

$

100

Bond

of

Series C

Holders

to

cash

certificates

to

due

holders
letters

and

Offer

the

the

to

19:23,

1,

making

also

is

Certificates

bonds

of

£100
of

issued with
the surrender
amount of the

(Scrip Certificates)

Series C will be entitled to receive against
in an amount equal to 15% of the face

of

surrendered.

so

July

dated

$165.00
$ 82.50
$105.00
$ 52.50
$ 10.50

payments

Republic

Convertible

B,

Deferred Interest

of

Certificates

of

Bonds

respect

Coupons of 1936 Plan

$200.00
$100.00
$108.00
$ 54.00
$ 10.80

C

of

London

2,

of new 3 % Sterling Bonds and
£763,390 6'/c Sterling Bonds, Series

Offer

an

of

holders

1957,

1,

July

and

a

payment of £27 per
1936 plans. Terms
application to the
8 Tokenhouse Yard, London
cash

who did not accept the 1933 and
transmittal will be given upon

of

i_.td., b,

and South America,

Bank

7 and

England.

C.

The

dollar

sterling bonds

the

of

tion

call

by

at

retirements,
bonds

provide $800,000 annually for debt service on the new
(issuable in amounts totaling $10,032,500 an-3 ) 046,590

will

Republic

and

respectively).

After payment of interest, the balance will be us"d
new
bonds by purchase at or below their principal
their principal amounts.
Additional
and subject to conditions set forth in

be

may

fn- redemp¬

r rrr mts or
funds may b" ." her to
the Offer and Or: f-v . Bond,

presented in lieu of sinking fund moneys.

CoLif" c" *
Offer
York, Crvrr. pt
Ogency
which has bee- >s gnated
Central de Reserva de El
Salvador, San Salvador, El Salvador, C. A. Copies of the Geren.
' -md, of
the text of the Bonds and Certificates and the letters of appoint
< >♦ of the
Banco Central de Reserva de El Salvador as Fiscal Agent and of Th<
ational
City Bank of New York as its New York Agent, are available fn-; ." pection
announcement

This

may

not

is

an

offer

of

the

Republic.

National City Bank of New

from The

be obtained

Department, 20 Exchange Place, New York 15, N. Y.,
as
the New York Agent of the Fiscal Agent,
banco

at the

principal offices of both
Offer

The

1949,

1,

January

Holders

of

Deferred

later

(Scrip
to

York Agent of

banks.

open

Outstanding
deliver

the close of bus'ness on
the Republic may design 1 .

acceptance until

for

date

as

and appurtenant coupons and Certificates
Certificates) who desire to accept the Republic's
National City Bank of New York, Corporate

Bonds

The

Basement A, 20 Exchange Place, New York 15, N. Y., as
de Reserva de El Salvador, their Outstanding

Department,

Agency
New

such

or

Interest

should

Offer

remain

will

Banco Central

appurtenant coupons and Certificates of Deferred Interest (Scrip
Certificates) with a properly executed letter of transmittal, in accordance with
the
terms
of the Offer.
Copies of the form of letter of transmittal may
be obtained
from The National City Bank of New York.

Bonds

and

Owing to the time

required for engraving and printing, the New Bonds and
will not be available for delivery before July 1, 1946,

Convertible

Certificates

and

not until about December
the required coupons attached

15, 1946. Holders oi Outstanding
will, however, be entitled to receive

promptly upon surrender thereof the cash
for the appurtenant coupons due to and
also be entitled to receive promptly upon

payments provided for in the Offer

probably

Bonds

with

including January 1, 1938, and will
such surrender cash payment of six
months' interest due July 1, 1946 at the new rates with respect
0 the New
Bonds exchangeable for the Outstanding Bonds.
A non-negotiable receipt (or
counter-ticket or letter of acknowledgement of receipt) will also be delivered
to such holders of Outstanding Bonds upon
the surrender thereof, providing
for
delivery of the New Bonds with the July 1, 1946 coupon detached but
bearing the January
1, 1947 and all subsequent coupons, and Convertible
Certificates as soon as they are engraved and printed.
Holder oi the Certifi¬
cates
of
Deferred
Interest
(Scrip Certificates) will be entitled to receive
promptly upon surrender thereof the 15% cash payment as provided in the
Offer.

amount equal

An

to

the

to Vsth of 1%

of the principal amount of the Outstanding
be deducted from the moneys first paid
to the Foreign bondholders Protective

exchanged under the Offer will
holders thereof
and remitted

Council,
The

holders

Inc,
basic

terms

Protective

Salvador

sideration

that
of

it
the

been agreed upon by the Foreign
which has informed the Government

of the Offer have

Council,

Inc.,

recommend tne proposed plan
holders of the Outstanding Bonds.
will

Rv

Bond¬
of El

to the favorable con¬

REPUBLIC OF EL

Dated, June 27, 1946.

(Continued

issuable

1935 appurtenant to the Bonds of Series A
1,
1932 to and including January
1, 1935

A

to her rostrum.

Any teacher of home

1,

of Series A

on,

is not offered

<

Coupons of 1933 Plan

of Series

Bonds

ceive you.

surrender

appurtenant

Bond

of

these past events only

due
the

sixteen coupons
appurtenant to

Republic

bonds

the

July

due

Bond

products, frustrated by the BorenI review

the

January

500

The collapse of

ous

the
194o,

with rights senior to any other creditor of
will be in denominations of $1,000 and $500,
in denominations ol $1,000, $500 and $100.

not received under

were

E.

1929 for the mo¬
submerged all this. Vigor¬

1,

are dated as of January 1,
direct obligations of the Republic,
shall secure hereafter any

are

the

Outstanding

of

against

coupons

and

event

Bonds

3'*

holders

1938

1,

January

payments

The

lowing.

of

amount

January

security

have

to

issue if he is to hold his fol¬

porarily fruitless,
something else.

and

including

thereof

cause

face

appurtenant to the Bonds of Series C (as to which payments were not received
under
the 1933 plan), and the six coupons due July 1, 1935 to and including

production front, took up the

academician's

and

C)

Fund Dollar Bonds

the

4Bonds

$

unemployment

or

the

a

revenue,

such

in

The

$1000

came

mediate

to

7bonds of Series

Dollar Bonds and non-interest bearing
principal and face amount which combined

1976,

1,

in

customs

receive

to

1933

of

Sinking

that

addition,

entitled

the

liiciuuing

and

January

share

3 V2 '■>

the

and

and subsequent

Fund

original

the

to

External

Republic.

000,000 Guinea Pigs," "Skin Deep,"

1938

surrendered.

the

facto

the

1,

Dollar Bonds of an equal principal amount
to one-half the original interest rate
(that is, 4"r>
bonds for the 8%
bonds of

for

bonds

Sinking

Certificates

1;>38

mature

011

ipso

with July

C,

equal

rate

a

3 l2 ',<■

and

undertakes

debt

of

Worth" by Stuart Chase and F. V.

at

one-half

New

will

which

Series

1946, will be entitled to receive,—

surrendered,

External

1,

bonds

1946,

publication

A,

3''r

Juj.v

the at¬

on.

Nineteen

and

Sinking Fund

bonds

Convertible

goods

A

Series

interest

the

on

down, society's needs in 1926
than ever before, governed

tack

External

bearing

prove

of

(herein called the "Outstanding Bonds"), the holder accepting

which is dated April 26,

New

(1)

dismal

Bonds

the

attached

coupons

Series

pened
went

July 1, 1923, due July 1, 1957; and

306,994.25 Certificates of Deferred Interest (Scrip

$

in¬

even

of fact,

matter

a

There

production was rea¬

stabilized,, the

his

of aca¬

Distribution System

on

soon

dated

more

the

of

prophet did he

a

talk to dwell

vertising will be the targets.
I

$ 5,285,600 7% Sinking Fund Gold Bonds, Series C,

to be?

when

that,

prediction

battle

tenders

I'll

Pearson—but

Drew

the

July 1, 1948;

society."

was

How true

repugnant to devotees
of collectivist or totalitarian phi¬
inevitably

ture

Bonds, Series A, dated July 1, 1923, due

Mar¬

reflection of the needs of

a

some

have

reflection

a

necessities

siasm.

I

rise.

to

manufacturers, and

spectful of the individual is epi¬
tomized in the system, that it is

lus of war

the unique

dividual

free

upon

up

continue

ever

THE

BONDS

OUTSTANDING

$ 2,475,000 Customs First Lien 8% Sinking Fund Gold

and

any

Brand

sum

than

TO

OFFER

AN

MAKING

IS

FOLLOWING

t

keting methods will become

ion,

So much that is beyond

So

a

man¬

"Distribution

concluded:

will

similar kind. The

Enterprise

American must be reckoned with.
names

will of their brands."

"The

The Last Bulwark of Free

or

see

of

will

He

THE

CERTIFICATES:

our

Horrors"

trol

shall

will

ufacturing and the great assets of

more

In

standards.

of

benefits—confidence,

and

ducer—stimulating
ling them—to make him some¬
thing new, something better. The

alternative

identification—which

Attacks
can

against pro¬
them,
need¬

producer

the

living standards, freedom—

Brand

can, brand names

competitive enterprise serving his
daily needs.
Brand names are the vital links

stations

radio

and

considerable

In the life of the average

in¬

as

rises and sets

revenue.

these

better
the

follow

sun

have

not

advertising

distribu¬

tion by brands.

are

the

as

and

subsidy

would

domination

factors

Brands

of

clear how much of our

life

source of
channels of informa¬

Government

the

Importance

of

independent

provides

no

just

of a free society, only be¬
competition between brands

tion.

We

complete transformation

costs

that the public reads

know

cause

control

its

is

That

the

underwrite

production.

mass

public still has one ace

hole.

not for the fact that

free press,

ileges

AND

OF

keting organizations and the good

like the value
give him for his dol¬

markets

We

methods

can

risks of

control.

ernment

benefits

ANNOUNCES THAT IT
HOLDERS

by comparison

years

existing

infantile.

seem

consumer

50

which

manufacturing establishments
no
longer live by their pro¬
duction facilities, but their mar¬

were

brand

goods.
Part

the

to

Republic of El Salvador

in

the next

enjoys good radio en¬
tertainment and many other priv¬

public,

come

In the free

all this?

in

delay,

The

are

anything

get

lar if it

a

Public?

the general

does

Where

without

that

other

industry

out—and

the decisions were announced.

What About the General

a

methods,

distribution, then we
shall see a development of brand
specifications, high pressure sell¬
ing, and national advertising in

through
brand names and advertising. We
know, for instance that he would
not

really

to

ership

uncertainty.

or

know

shares

in"

3,000 miles away
buy a precisely

or

and

quantity

We

phase of their

"run

can

home,

known

Where were management or own¬

management

They

from

of this

ership in those dramas?
When the battles were

be in every

lives.

picture, may I remind you "of two
spectacles, fresh in our memory,
the rail strike and the coal strike.

on,

sure,

marketing

of

Offer

in

learned through advertis¬
ing, Mr. and Mrs. America can be

labor barons

an

are

Napoleon Viera

Minister of Finance and

SALVADOR.
Altamirano,

Public Credit.

3492

THE COMMERCIAL Sc FINANCIAL CHRONICLE

North

Western

offset

the

first

country)

of

disappointing. In effect,
Territory (the northeastern section of the

Official

yield

average

of

the

higher rates is estimated at
4.7%.
tion

the

Cons. "A" 5s, 1927

old

roads

creases,

Chicago Railways

the

Official

the

roads

eastern

additional

granted in Official Terri¬
tory should pretty well offset at
increase

1946 increase

the

least

around

in wages.

Moreover, there seems ample jus¬
tification for the hope that when

in¬

emergency

in

meager

a

the

Terri¬

question
the

settled

tory were granted an extra boost
of 5%, but also with important
exceptions. On the average it ap¬

of rates is finally
Commission will be

considerably more liberal than it
has been in the temporary in¬
creases.

likely that the new Official
Territory rates will work out
pears

Marion Power Shovel

Had
with

they

Cement

ticular import was the decision of
Illinois Central directors to aban¬

these

been

Missouri Portland

only recent railroad news of par¬

Commission

the

increases

Preferred

proposed

out

come

emergency

no

more

an

have

would

With

the

cision

delays

that

grown

immediate

a

been

the

more

feeling had

favorable de¬

in

was

MEMBERS

Exchange

and

other

leading Security and Commodity Excha.

120

Broadway, New York 5, N.Y.

231

So. Lr*Salle St.,

Chicago 4, III.

that is that they may elimi¬

and
nate

of urgency in the
Commission's deliberations on the
question of permanent freight rate
any

sense

adjustments and further delay the
final decision.
Be that as it may,
it

now

final

seems

decision

probable
will

not

that
be

the

forth¬

coming until well towards the end
of 1946, or perhaps even later.
While

TRADING MARKETS—

sion

Magazine Repeating Razor Co.
Universal Match Corp.
Dixie Home Stores

Berkshire Fine

simism

Commission's

deci¬

disappointing it is by

cause

for

towards

no

any great pes¬
the outlook for

the railroads and railroad securi¬

of

Tennessee Gas & Trans.
Firth Carpet Co.

was

means

ties.

Spinning

the

It will be difficult for

the

western

roads

a

blanket

new

314%

and
varying
amounts of cash in exchange for
their

bond

present bonds.

such

as

tions.

Nevertheless,

taken for granted

agement

will

accept¬

ing the terms. The necessary 50%
were
not
forthcoming
even
though the time for assent
was extended beyond the original
assents

termination
the

date

June

of

3

and

literature

original offer was sweetened

on

the

new

bonds

3V8%

from

ciency of
of

er

abandon¬
ment of the second step also.
The
second step was to have been the
refunding of the Refunding 4s and
5s, 1955 with another series of the
new blanket mortgage.
Thus, the
apparently

still

is

road

formidable

the

early

further

mean

left

its

wtih

rather

maturity schedule in
1950s and without the

reduction

in

its

fixed

in

the

The charges them¬

plan.

selves should not prove too oner-

question

ineffi¬

methods of distribu¬

our

and

bills, ready for Congress but

curtailing freedom of
brand competition,
trademarking,
and advertising.
Bureaucracy itself is not making
ing a great issue of the subject, at
this

instant, but the literature

the

Federal

never

propaganda
to

ceases

keep

of

machine

the

issue

The

The

Consumers

Consumers

come

SECURITIES
Selected Situations

at

Broadway

bies

Union

has

be¬

lob¬

in

the Capital, and it marimposing strength when it

wants

to

make

its

felt

power

on

such

questions as the continua¬
tion of OPA and other subjects in
which it is interested.

Organized

is

growing

a

disadvantage, whether

dealing with management
employee or as a customer.
of

it

ion

in¬

program
is
the thesis that the work¬

at

er

labor's

educational

on

parrots

and

Stuart

the

the

as

Much

Consumers

early

an

Un¬

preachings

of

Bell

itself, we have
busy "Quislings"—distributors

of various kinds—who like to bor¬

from

row

to

build

anti-brand

power

propaganda

catalogues

manufactur¬
in

and

mail

some

or¬

chain

appear to

be

of

new

that the doctrine of dis¬

is
in

and

One

marked

foundations

Federal

long

"the

as

25 Broad

Street

When issued profits

New York 4, N. Y.

harmed

When

issued

discountek

losses

the

No—don't

120

consumer

is

not

in¬

called to
battle

individual

us.

I believe

Telephone REctor 2-7340

a

hold
for

textiles, inc.

limitations

bility

of

It

the

customers

or

third

advertising has

with

the attributes of the brand
advertised. If it fails in that func¬

tion, it cannot
justified.

Also,

economically

of advertising—in fact
generally—are un¬

we

business

be

men

accustomed to this kind of battle.
After long dealing with concrete

products

and

tangible

sales

on

of abstractions and the dissemina¬

tion

of

a

philosophy
viewpoint, a new

new

idiom and
Yet

economic

an

requires

a

the

approach.

new

march

the

of

The
cent

63 Wall

Street, New

BOwling Green
Boston

9-8120

destroyed
of

One
bond

the

Philadelphia




NY

1-724

sales, fat salvage,

recruitment

and

advertising

testify

other

war

drive

the

vigor

can

accept

to

with which

advertising
challenge if it has to.

And the urgent need to protect
not only
our
markets and our

existence,

infinite

stake

individual
further

but
in

freedom,

adaptation

system
must

of

our

Hartford

regional

AFA,

organizations

the

4A's,

others—have

tising to do
it

only

of Securities Dealers, Inc.

facts

a

upon

street

HAnover 2-9072

n.

y. c.

about the

services

convincing

almost

that

the

presenting

dramatic

incredible

advertising

the

American

not

advertising in

and

are

the

likely to

line

of

the

a

correct one,

men

long reluctant to become in-

every

of

industry to¬

gether with agencies, and media,
are

calling

their colleagues

upon

to contribute financial

support and

active cooperation to

the organi¬

zation which is
concerted

that with

advertising

Leaders

consumer.

lic,

the

spearheading this

presentation to the pub¬

Brand

Names

Foundation.

NEW YORK 5

HANOVER 2-1355

TELETYPE

NY

5

Tele. NY 1-1293

and

adver¬

selling job, such as

do,

in

liberty itself.
impression, and

TEL.
52 wall

ANA,

—

own,

your

called

can

truth—the

ONE WALL STREET

Member of National Association

cause

think¬

ing.
Leadership of advertising from
coast
to
coast
is
accepting the
challenge. The great national and

Specializing in Railroad Securities

co.

public's
of

the

the

UNITED PUBLIC UTILITIES
1. h. rothchUd &

re¬

prior

concept of ad¬
billion
dollars

our

BOND BROKERAGE SERVICE

York 5

Tele.

of

responsibilities of'the
war

limitations

ROCK ISLAND OLD PFD.

Adams & Peck

logic

situation.

any

a

often

events

seeming

GETCHELL MINE, INC.

request

ob¬

jectives, the battle for acceptance

Members New York Stock Exchange

Circulars

moral

criteria.

first, second,
acquaint the public

to

Mclaughlin, reuss & co

BUDA CO.

accepta¬

traditionally I been
and

central paper
Common

be

according to

other

of

and

quotas

literacy,

any

function

was

would

sales

on

economic

or

the

few exceptions,

were

wisely taken.

Advertising

realize

lull

a

It has been my

BROADWAY, NEW YORK 5, N. Y.

with

to

Whether

let's let

perpetuation
of the free enterprise system, of

Members New York Stock Exchange

Common

the

would choose it to be so, we of

final

SUTRO BROS. & CO

rubber

a

article

product distribution
be

difficult

debate

brand identification render to the

firing deceive

assumed

we

master tire &

con¬

ferior.

Telephone

BOwling Green 9-6400
Teletype NY 1-1063

of

advanced

article bearing a counter¬
trademark,
he
is
not
if

an

inter¬

non-eco¬

desires

also

novel idea that when
an

for trade-

consumers

goods
snobbish

feited

in

Circuit

judge,
characterized the

ago,

He

and

names

beginning to find
judicial
decisions,

without

sumers."

GUARANTEED RAILROAD STOCKS-BONDS

was

understandable.

very

firms will

your

de¬

as

past position

Certainly, the position
is

vertising.

lines

are

attorneys of

you

buys

the

Function of

worth of

private

advertising that

nomic

Seaboard Air Line Railway

advertising

la¬

for

over

There

preference of

all Times

policy
of

to

now

not

or

temporary bar¬

markets

bels and thus gain

law.

Teletype—NY 1-310

consid¬

top

problem

fruitless

overcomes

Within business
our

the

free
enterprise
institution or of

is

It

Chase, line for line, word

for word.

with

New York 6

Telephone—DIgby 4-4933

was

to

the forces and practices
that comprise free
enterprise.

The

shalls

not

61

leave

management

rectitude,

Union

of the most active

one

reflection

Exchange

it

years

to

their

alive.

trademarks

Stock

wise

of

and

undermining of brand

York

For many

ered

iting

tell

New

issues.

whether

The

Members

broad, abstract is¬
They were par¬

ticularly fearful in any way to re¬
late actual advertisements
to these

for the moment not
pressed, lim¬

trust at the market place and the

RAILROAD

Enterprise

the

preting

Teletype

pflugfelder, bampton & rust

in

Any member of Congress can
point to a collection of resolutions

so-called "prophets
consumership."

Specialists in

now.

over-all

the

1-1499

further

of the day.

sues

consum¬

borrowed intact from the texts of

NY

volved

grading.

store

Railroad Bonds and Stocks

a

near term seem out of
the

fending

gaining

STREET

2-6622

sonably

exert

advertising, the monopolistic

ternal

Failure of this part of the plan

the

for

1946

and hopes for
divithe stocks over
any rea¬

on

character of trade marks, the virtures of mandatory
government

built

will

dends

man¬

to

tion—the "high cost" to

to

314%.

depicting

ers.

NEW YORK 5

HA

that the

continue

der

Telephone

be

can

(Continued from page 3491)
social science has always avail¬
able a ready supply of plausible

by increasing the proposed coupon

Van Tuyl & Abbe
72 WALL

it

its greatest efforts

reduction,

Brand Names and Free

holders of

half of the affected bonds

charges that had been hoped for
some

even

The plan had

been conditioned upon

deci¬

prospect.
There is
one
other potential weakness or
danger in the present increases

Stock

offered

mortgage

to be

possible.

was

underlying
bonds
1951 and 1952 were

maturing in

than the

were

This

plan under which holders of

non-callable

riving at the present unsatisfac¬
tory solution. At the outset it had

sion

York

the

The disappointment largely arises
from the time consumed in ar¬

reinstituted

New

consolidation program.

would probably not have
considered
disappointing.

Ex Parte 148 increases

Ernst&Co.

don, at least temporarily, the debt

number of weeks ago

a

been felt that if

Timm Aircraft

Aside from the rate decision the

above present rates.

around 9%

burden for the road to carry
under normal traffic condi¬

ous a

or

In addition to this restitu¬
of

such

highly satisfactory results for the
as a whole.
In the case of

were

the

to

year

granted restitution of the old emergency freight rate
increase which was granted a number of years
ago for the war period
plus six months, and then periodically' suspended.
With the many
exceptions to a straight 6% in-<5>
1
crease

Paul

showings of the

with

half

St.

and

freight rate increase.
On the
other hand, others such as Texas
&
Pacific, Sante Fe, Southern
Pacific, and Union Pacific should
be
able
to
continue
showing

On the whole the treight rate increases
granted by the Interstate
Commerce Commission late last week were

roads outside

poor

Thursday, June 27,

Philadelphia Telephone

—

Lombard 9008

1-2155

Research

Number 4502

Volume 163

THE COMMERCIAL & FINANCIAL
CHRONICLE

The Future of the Bull Market
(Continued from page 3473)

the struggle over Govern¬

creases,

and profit restric¬

ment controls

generally

the

and

tions

of

trend

pointing

disap¬

international

affairs.

concluded that

In February we

bull market would run

the

into

hands of the public all at unpre¬
cedented levels (even though the

Government has

rises

intermediate

ual

and

selective action. Market action has

selective, but the

been very

indeed had

has

ket

mar¬

wide

a

rise,

dynamic part of which,

the most

however, was over by

early this

year.

The

present

last

markets

bull

date

lysts

market

has
than

more

Only the 1932-37 and

four years.

1923-29

bull

months

two

(some

the latter

ana¬

from

1921)

have exceeded it in duration. That

ended

which

in

less

than

months

1937

four

lasted

five

years.

The

duction

favorable

potentialties,

looked

forward

somed

while

the

debt

cut

was

(after a high of $26 bil¬
lion) to $16 billions.
As to
The Factor of Yield

bull

market,

2.5%

high

on

bonds.

In

dentedly
rates

grade

view

ldw

trols, it

unprece-

of

interest

Government

previous occa¬
sions, equal or fall below bond
yields before the
bull
market
ends

as

on

(although

the

low

interest

basis

rate

might imply a higher
range for price-earnings

normal

ratios). But
with

than

emphasis

the

in¬

on

this

and

present

the

why

there

is

no

fall short

of,

Stockholders:

any

During the

economic

that

cycle

it

another point of
view,
there
are
three
typical
phases that bull markets charac¬
teristically pass through. These
are:
(1) rebound from over-depressed levels; (2) adjustment to
improving conditions; (3) overdiscounting of favorable prospects
because
of
excess
of
optimism.
These phases may, of course, vary
greatly in the proportion of both
time

that

market

of each

bull

they represent.

previous discussion, we
expressed the opinion that the
first phase of this bull market—
remembering that a bull market
In

is

our

well-defined

as

"the

culmination

by well

a similar economic
trend"—ended in July, 1943, and

mating in time
we

were

still in

the

second

phase.

intervening
rise, we doubt that the market
has really entered the third phase
even
yet. There is certainly no
typical excess of optimism; in
fact, cautiousness, bred by vari¬
Despite

ous

the

large

difficulties and unsettled con¬

ditions, is quite widespread. Aver¬
age price-earnings ratios are un¬
deniably high; but when these are
broken
which

so

Higher Earnings Prospect
A

it

further

is

that,

obstacles

earnings

be

to

overcome,

whole in 1947, and

a

1948, will
not exceed appreciably those of
this year.
Bull markets seldom,
if

in

also

have ended in the year
before peak earnings were at¬
tained, but usually in the peak
year.
In fact, there are instances
where they ended in a later year.
On this basis, unless a relatively
early rise of most extreme pro¬
ever,

portions

tinued in heavy volume.

and

year,

the

case

the

of

companies

retail

trade

like
and

to

be

seen,

the

bull

1947

or

ings of

a year

This

also

excellent

of two from now.
that,
while

means

opportunities doubtless
distributive and im¬
consumption goods in¬

Turning to the
situation, there
who

nicians

immediate
market tech¬

are

would

like

to

see

a

high) by the Rail Average before
acceding to the opinion that a
new
upward "leg" of this bull
market

is

but

rise

is

believe

confirmation,

a

that such

believe

also

ther

We

indicated.

they will get such

fur¬

a

The breakthrough into new

vincing type often seen
past, but actions similar

con¬

in
to

Unlike

indications.

the
the

more

smashing
action, no significant
part of the expected further rise
has been seen; whatever it is, it

entirely ahead of
us.
Confirmatory
action
has,
about as often as not, been fol¬
virtually

lowed

by

irregularity

reces¬

or

by

as

this

time

before

carried

are

of

favor

well

as

the

means

of

payment

employment
and income
high and liquid resources in the




0

the

advance.

out.

indications

One

factor

in

rise is the
rather reliable seasonal tendency
for

nearby

advances

over

fore

a

in

spring levels

the

summer

occurring

be¬

Lakes

as

with

was

Co.

is

ILL.

witn

Ralph

—

Robert

F.

R.

Mc-

| Master & Co., 105 South La Salle

weather

area,

with

low

heavy

snow

a

of

on

Following the
the European front, the
that

service

the

and

area

was

increased

personnel

to

such

an

that

bad

ties

due not

from

technical

the

the offing.

about the

and

possibili¬

What is done

OPA, labor legislation,

developments,

situation

materials, but also to

war

movement

products

as

number
served

a

of

of

of

major

industries

labor

a

finished

difficulties

the

in

in

a

territory

by the New York Central.

earnings of the Company receded moder¬
ately from the record high reached in 1944.
Net

$24,412,525,

was

the

strike

here, the political trend

this fall—all will influence
.er-term market

near-

movements, spur¬

entitled

or

$3.79

further

to

com¬

recover,

law, a certain proportion of Federal
taxes paid in previous years. Adjustment of other
over-accruals

A

of

taxes

applicable

to

prior

years

comparison of the tax accruals for the

1945 and

S.

years

1944 follows:
1945

U.

and

1944

Decrease

$49,410,204

Canadian

$

3,838,925

$53,249,129

44,782,770

45,123,774

341,004

$48,621,695

All

other

$98,372,903

$49,751,208

taxes

Readjustment
prior

per

of
taxes

years

32,778,220 Cr

Over-accruals, prior
Net

Tax

32,778,220

9,420,317 Cr

years

Accruals

$

9,420,317

share.

6,423,158

3,372,903

$91,949,745

Fixed Charges

Fixed

966,

charges

4.6%.

or

lower than in 1944 by $2,111,-

were

Rent for leased roads and equipment

decreased

$1,011,518;
interest on funded debt,
$907,339, and on unfunded debt, $220,381. Amor¬
tization

of

discount

funded

on

debt

increassd

$27,272.
Dividends
Dividends
rate

on

capital stock continued at the

in 1944.

On May 9,
declared a dividend

as

rectors

the

upon

Gross

income

became

decrease

and

materials

raw

result

the

capital

stock of

same

1945, the Board of Di¬
of 50 cents per share
the Company, payable

July

16, 1945, to stockholders of record May 26,
1945, and on Nov. 14, 1945, a dividend of $1
per share, payable Jan. 15, 1946, to stockholders
of record Dec. 1, 1945.

Operating Results
Total

operating

in 1944.

and

in

revenues

passenger

revenues

increased

volume

number

6.4%.

revenues

of

Other operating

0.85%.

moved

1944.

of

one

The

measured

as

mile,

revenue

by

14.56%

was

ton mile

per

Passenger

traffic, as measured by the number
passengers carried one mile, was 5.44% below

of

the

record

mile

level

averaged

cents

1944.

in

of

1944.

1.928

Revenue.per

cents,

Movement

passenger

compared

of

the

with

armed

1.948

forces

on

active

duty
and
in demobilization contributed
greatly to passenger volume, as did also travel at
reduced rates by large numbers of service men and
women

on

other

or

furlough and by discharged veterans.
expenses

deductions

and

(not including taxes,

fixed

charges)

higher than in 1944 by $48,841,337,

were

9.2%. The
principal reason for the rise in the year's operating
expenses was that they included $45,595,147, rep¬
resenting unamortized expenditures for emergency
facilities acquired prior to Sept. 1, 1945. These fa¬
cilities embraced additional cars, locomotives and
other equipment,
as well
as
roadway improve¬
or

ments, found necessary in the interest of national
defense. Their cost could, as provided by law, after
certification by appropriate Government

authority,
be amortized over a 60-month period, or a short¬
ened period upon proclamation
determining the
end of the war emergency. Prior to Sept. 29, 1945,
amortization of such facilities had been accrued
books

the

of

the

Company

at

the

on

20%
Under date

rate

annually from the time of acquisition.

of

of Sept. 29,

1945, the President of the United States
proclaimed the end of the emergency as it affected
this situation, and the Company elected to include
in its expense accounts for the year 1945 the bal¬
ance

the

of

be

no

unamortized

cost.

These

emergency

depreciated, there
subsequent depreciation charges in re¬

spect of them.

Railway tax accruals were lower than in 1944 in
the amount of

$91,949,745, or 93.5%. This abnormal
largely brought about by the lower
revenues realized and by the accelerated amortiza¬
tion of wartime expenditures referred to above.
was

By reason of such charges and decreased earnings,
the Company incurred no liability for income taxes
for

1945 except Canadian income tax and Federal

Working

in

the

Capital

condensed

balance

sheet,

Current Assets exceeded Current Liabilities at the
of

the

During the

year
year

by the amount of $149,784,642.
certain changes were made in the

classified

accounts

Current Assets and

as

Current

Liabilities in order to conform to the, present In¬
Commission

Commerce

regulations.

For

comparative purposes, the 1944 accounts have been
re-stated

and,

shown,

as

Current

Assets

at

the

close of 1944 exceeded Current Liabilities by $99,-

The

549,291.

ratio

of

Current

Liabilities at the close of

1945

Assets
was

to

2.21

Current

as

against

1.51 in 1944.

Capital Obligations
The

steady reduction of the outstanding debt of
the Company and its lessor companies continued in
1945, despite the necessity of financing sizeable
acquisitions of new equipment and further ex¬
penditures in connection with the grade crossing
elimination program in New York State. The gross
reduction in bonds, equipment trust certificates and
other

capital obligations in the hands of the public
payable to the State of New York
on
account of grade crossing elimination, totaled
$22,065,060. Partially offsetting this reduction were
the issue and sale of obligations amounting to $17,and

in amounts

654,240, representing a part of the purchase price
of new equipment, and further advances of $1,-

in connection with
Thus, at the year's
end total debt represented by capital obligations
outstanding of the Company and its lessor com¬
panies, was $855,406,532, compared with $858,180,288 at the end of 1944, a net reduction of $2,773,756.
Not reflected in these figures, however, is
an advance in the sum of $4,500,000 made by
the
Company to the Louisville & Jeffersonville Bridge
and Railroad Company, a wholly owned subsidiary,
to enable that Company to pay and retire its out¬
standing first mortgage 4% bonds which matured

636,439

State

York

New

by

elimination of grade crossings.

on

March

Since
Taxes

decrease

forth

set

terstate

9.44 mills.

was

As

end

freight moved,

of tons

Net

lower than

8.5%

were

The decline in freight revenues was 10.6%

angles,

usual, both good and

probabilities
in

only to the substantial reduction in the

shipment of
in

and

personnel

very

military

panies,

fall,

it became
necessary
to curtail the
provided for civilian passenger travel.
In
the latter part of the year there was a considerable
falling off in the volume of freight traffic, which

will

Near-Term Developments

Aside

1945.

under the tax

Syracuse.

redeployment of troops from
of
transportation
returning
placed

of

facilities having now been fully

autumn.

foreign

with

immediate

Further decline may well be seen

prosperous conditions, since
demand is undoubtedly there, as

highly

far east

as

Railway operating

high

ground has not been of the

there are, as

the

market lies largely

Great

because

exceptionally

cessation of hostilities

already indicated.

future of the bull
in the capital
and durable goods fields. We be¬
lieve that the companies in these
latter fields will in general attain

dustries,

he

&

also contributed to the total amount of reduction.

more

greater exceeding of the previous

exist among

mediate

weeks

the

and

less than that

Further Rise Indicated

months, with usually a good rise

earn¬

in

extending

the

in relation to

the potential

several

temperatures

The

sion

fields,

toward

progress

CHICAGO,

be

At the beginning of the
traffic was seriously im¬

of

movement

for

conditions

1948.

even

where
great
realizing
ex¬
pected peak levels of earnings is
being made, prices are generally
not high in relation to 1946 earn¬
ings forecasts.
In the case
of
heavier lines, prices are not high

amusement

the

could be expected to run

market

into

is

valid

Price-Earnings Ratios

in

as

be¬

regard

due

to

possibly

quite

lies

the

with

still

that

to

difficult

extremely

lieve

is

consideration

present instance have also proved

this

service,
Freres

With Robert McMaster Co.

far

as

reasonably

year

service

better

far

the

shipments of
supplies and the transportation of troops con¬

war

extent

over a year.

stocks

picture is different.

In

market

those

into

those which have had poorer,

those

bull

a

experienced

down

have

earnings

of

bond

longer-

major
uptrend
of
stock
prices, usually roughly approxi¬

of

tion

their low; but a rise in

term

that

high-

that

true

half

the

re¬

flects. But, from

movement and

of

factor

a

first

yields has been known to precede

previous bull market.
Each one
has its own characteristics, like
the

of

&

income tax in connection with certain lessor

heavy burden on the available pas¬
senger equipment.
With the end of the war in the
Pacific, followed by demobilization, the transporta¬

seen

reason

approximate

or

is

is

It

apprecia¬

lend further attrac¬

grade bond yields have probably

bull market should exceed,

a

bonds,

on

dividends

er

still attractively

are

tion prospects

strength.

Three Typical Phases
course,

F.

staff

Street.

which resulted from the termination of hostilities.

tion, and the prospect—being rea¬
lized in numerous cases—of high¬

Of

Lazard

carried.

ex¬

as

can

operations of the New York Central,
in common with those of other
railroads and many
industries, were affected by the unusual conditions

scored, is still far behind the 372%

\

military

Maloney

conjecture

as

the

at¬

an

market, and is about

In 1945 the

bull market began

no

greater

a

come

To

those

earlier bull markets.)

the

EXTRACTS FROM ANNUAL REPORT—FOR THE YEAR

above

(It

bull

George

__

THE NEW YORK CENTRAL RAILROAD COMPANY

con¬

rise, however, the existing bull
market,
with
129%
advance

two

This is not

Blair

be that stock yield

may

not,

corporate

the

level

the

and

of

peded

by

for

tempt to forecase the end of the

opinion,

our

look

ILL.

joined

Company, 135
South La Salle Street, after serv¬
ing in the U. S. Army. Prior to

top, whenever it does

levels.

current

com¬

William

already vis¬

would

we

has

point is that though
yield on stocks has fallen greatly,
it still averages 3.4% as against

year

of 1929.

over

CHICAGO,
Brewer

to be substantially beyond

occur,

de¬

the future of the present

Another

yields

exceeded

bull market

Conclusion

Stock

well

ualized,

do

most

a

potentials

and

from $22

emphasis has not been eliminated.

also

be

Joins Wiliiam Blair & Co.

Furthermore, given

good combination of various

any

this

in

certainly

we

pressing market factor
ing months.

great bull market of 1929 endured
In per cent

was

failure

end this year.

long

so

Definite

not expect—would

respect—which

for at least six years.

in 1937 and the 344%

to.

tirement is not bearish; the great
bull market of the
1920s blos¬

will

now

pump

pressed above, is that it will not

prolonged further

reac¬

tions) with a continuance of very

to

ring or retarding any rise. Most
important of all will be the abil¬
ity
of
the
industrial
machine
really to begin to achieve pro¬

purchasing power via deficit
financing). Government debt re¬

post-war period (with the us¬

the

ceased

out

3493

1, 1945.
there

1932

has

been

a

net

reduction

of

$253,401,420, or 22.9%, in the total outstanding
amount of capital obligations of the Company and
its lessor companies.
Interest, computed on an
annual

such obligations outstanding at
$14,141,486 less than on those
at the end of 1932, a reduction of

basis,

on

the end of 1945, was

outstanding
29.8%.
For

Comparative

Statistical

Issue of

Income

Account,

Balance

Sheet,

Chronicle dated June 24, 1946.

etc.,

see

3494

THE COMMERCIAL & FINANCIAL CHRONICLE

Arthur Engdahl, Goldman.
Sachs & Co.; Howard Harris,
Baldwin, White & Co.;
Lee Hallett, Draver, Sears &
Co.

Thursday, June 27, 1946

-

D ok Hart. Draver. Sears & Co.: Eob
Mossod, Barrett & Co., Providence, R.

Adams, L. F. Rothschild & Co.; Wallace
Irving Lc Beau, Jr., May & Gannon.

msm^

fcj'i V'!

■

*

;

■' •

.

f

z&M

"

t

George Stanley
Chas.

A.

and Eddie Creamer of Schirmer, Atherton &
Co.; Leon Day,
Day & Co.; Hale Atherton and Frank
Breen, of Schirmer, Atherton & Co.

Frank Harrington, H. D. Knox &
Co.; Anton E.
Accordian Player; John Daley, E. H.
Rollins & Sons.

Homsey, du Pont, Homsey Co

&

Theodore Eldracher, R. W. Pres?vr:ch & Co.; Frank
Ward, H. C. Wainwright
Co.; H. M. Smith, Copley Plaza Hotel; Carl Jordan, R. W. Pressprich & Co.

Bill

'

Npw

Skinner,

York

Walter J. Connolly & Co.; Milton F.
Lewis, Ira Haupt & Co.,
City; Russ Bramble, Ira Haupt & Co., Boston; John French, Pearson,

Erhard &■ Co.

Russell Dean. F. L. Putnam & Co.; John
au

Pont. Homsey Co.




Tirrell, Star Printing Co.; Rod Darling,

Fred Moore, J. Arthur Warner
Conary, J. Arthur Warner & Co.

&

Co.;

King Ghegan,

Ira

Haupt

&

Co.; Bill

Volume

163 ' Number 4502

THE COMMERCIAL

& FINANCIAL CHRONICLE

3495

Visitors Find They're Not Effete
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Sumner Wollev, Coffn

&

Burr; Frank Lynch,

Hunnewell &

^;:,u-

C.

Co.; Bob Warren,

Geyer & Co.; Lon MacDonald, Paine, Webber, Jackson & Curtis.

H.

'/k

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iisiYix-, ^

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JfiSNv

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s.

4

P#; 11^

Marshall.

Josevhthal

&

Co.;

Henry

McAllister, Jr.,

Frederick

C.

Adams,

& Co.; A. H. Reillv, Josevhthal & Co.

:

i.

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W. E. Miller and A1 Dykes, of

Whitney & Elwell.

Bunny Libby and Bert Woglom, W. H. Bell & Co., Boston.

*

Mdl< 1-Asm

-«mm

•m,r%
■«a&£'v»:

;\?&gawtfg
WMCT

Josenh

Robbins,

Whiting, Weeks & Stubbs; Robert
& Co., Providence, R. I.; Curt

Fred Harson, MacColl, Fraser

Nicholas Lamont and John




McCue, May & Gannon.

Weeks, Coffin & Burr;
Townsend, Weeden & Co.

.

Frank Voysey, Kidder. Peabody

& Co.; James A. Kelly, Tifft Brothers, Spring-

field: N. H. Bernard. Schirmer, Atherton &
Meeds, New York

&

Co.; Carroll Williams, La.rd, Bissell &

City.

Phillip F. Kenney, E. M-. Newton & Co.; Vin Snellman, Frederick C. Adams
Co.; Pat Carr, Frederick C. Adams & Co.; Joseph M. Rinaldi, Lerner & Co.

'/ it i.

■

.'

3496

;: ",

;

.VL

h

;

'

*

■ ■

'■

-

i

<

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, June 27,

a

1946

June 20th Outing was Big Event

Emil

Kumin, Estabrook & Co.; Dayton Haigney, Dayton Haiqney &
& Co.

Co.; Harry

Gilman, Estabrook

Herb

Smith. Blyth &

Co., Inc.; John Maguire, May

John Sullivan of F. L. Putnam &

Co., Inc.

& Gannon; Russ Dean and

A1 Crampton, Weeden & Co.; Harry Welsh, Lilley
Murphy, Chace, Wh'.teside & Warren, Inc.

&

Co., Philadelphia; Tim

Arthur D. Noble, J. Arthur Warner &
Co.; E. J. Ryall, C. J. Devine & Co.; R. T.
Hixon, Hooper-K.mball & Co.; Speed Hughes, J. Arthur Warner & Co.

Clement Diamond, Townsend, Dabney &
Tyson; Lee Hallett, Draper, Sears & Co.
Wesley Patnode, Townsend, Dabney & Tyson.

Leon

Day and Wilfred Day, of Chas. A. Day & Co.




F. E.

I

Maguire, Stroud & Co.; Herb Smith, Blyth & Co.

J

Volume 163

Number 4502

THE COMMERCIAL & FINANCIAL CHRONICLE

For Guest and Members

Ralph Carr, Ralph F. Carr & Co.; Fred Wright, F. J. Wright & Co.

James
Paul

Harry Crockett, Coffin & Burr; Benjamin Bailey, Dayton

Pleasure Bent

on

E. Movnihan, E. H. Rollins
Toschi, Kidder, Peabody & Co.

Clifford

Haigney & Co.

H.

&

Sons;

William

Burke,

May

&

Gannon;

Marshall, Josephthal & Co.; Wallace Mossop, Barrett & Co., Provi¬

dencet R. I.

John W. Shea, Mixter & Co.; John L. Shea, Shea & Co.; Dick Grimm, du
Homsey Co.; Francis Casey, Mixter & Co.

Pont,

King
Moors

&

Ghegan,

Frank

Baseball Team.




Ira Haupt & Co.; Jack Carr, Ira Iiavpt &

Co.; Charlie Smith,

Cabot.

Ward, H. C. Wainwv aht
C. Wa.inwriqht & Co.

Dick Max. H.

& Co.;

Bob

Ingalls, Tucker,

Anthony &

THE COMMERCIAL & FINANCIAL CHRONICLE

3498

In

projected range of. 195 to 255.

In
addition, the following interesting
yield comparisons are made:
"Dividends

the stocks in the

on

Average amounted to about 70%
of earnings for the past ten years.
Dividends of 70% of possible 1947

Steel and
It would be

Building Supply Stocks

strange thing if the professional investment

a

man¬

agements charged with the responsibility of supervising the various
mutual fund portfolios were not, in the main, agreed on which stock

represent the most attractive values. Of course, there is always
some divergence of investment judgment, even among professionals.
And because there are many distinct types of mutual funds, the
groups

which
management
the various types of

emphasis
places

on

securities
is

It

varies

considerably.

interesting

how¬

note,

to

♦>

sors

activity is to occur, two
decades of investment experience

higher

suggest

prices
Industry Shares."

for

Steel

of

stocks.

This

years

from

brings

mail

week's

Hugh W.
Long & Co., two handsome fold¬
ers emphasizing the current values
one

of

the

in

these

steel

to come."

and

stocks.

building

dustrial stocks in the London

mar¬

ket from the

beginning of 1929 to
The bulletin points out that
prices in London have ad¬

date.
stock

farther

present

than

bull
are

tance

their

while

56%

American

now

dis¬

some

1929

stocks

highs,

are

face

the

of

the

possibilities and
predicts that they will be 5%
higher on average than last year.
In
a
separate memorandum the
outlook for stock prices is ana¬
lyzed. After pointing to a host of
"usually very dependable sign¬
posts" which would indicate that

only

fact

that

"If

work in

at

both

Economics & Investment Dept.

Distbibutors Group, Incorporated
•

News,

Street

to

the

were

Journal"

prices

fearful

New York 5, N. Y.

this

the

far

fa¬

more

for

industry in
country, American stocks do

not appear

inflated by comparison

with the British market."

to

Co.

and

National

Se¬

releases.

Although they

dif¬

use

ferent supporting data in making
their analyses, they arrive at sub¬

stantially the

STOCK SERIES

W.

the

Shares

L.

Morgan

current

Dow-Jones

<

NATIONAL SECURITIES A

same

&

conclusion.

after

for

advised

we

several

postwar

you

years

require close

capacity operation.

We under¬

"Leading steel stocks have not
yet reflected full public realiza¬
of the

still

shortage of this basic

At present prices they
sharply undervalued."
*

Another

*

*

Distributors

recent

Group release which should be of
interest to many is a revised fold¬
er
showing the "Advantages of
Profits
a

over

table

Income."

It contains

setting forth the tax ad¬
of profits over income

vantages
in

various

income

brackets.

Co. compares

"earnings"

of

the

New

High for Lord-Abbett

Industrial

Walter
Scott
Average
reports
in
the
with past earnings and with
pros¬ current issue of Abstracts that as¬
pective earnings for next year. sets of the Lord-Abbett group ol
On next year's estimated earnings Investing Companies now are at
of $13 to
$15 per share, using a new high—above the $90 mil¬
As of May 31, they
price-earnings ratios of 15 to 17 lion mark.
times, the Average indicates a were $92,426,966.

RESEARCH CORPORATION

Notwithstanding

from
year to year, there have been few
exceptions to the summer rise in
stock prices.
The stock averages
in
July and August have sur¬
passed the previous May closing
levels in each of the past 15 years,
in 19 of the past 20 years, and in
42 of the past 49 years."
varying

conditions

In

Commonwealth
charts

the

/

the

1Massachusetts

Keystone

Trust
Write

for prospectus relating to the shares

of either of these investment fundsi each
of which is managed independently of the
other

by

a

different

management group.

unos
VANCE, SANDERS
111

Prospectus
your

may

The Keystone

SO

BOSTON

Company

of Boston
Congress Street, Boston 9, Mass.




COMPANY

or

NEW

^

&

DEVONSHIRE STREET

be obtained

local investment dealer

6i

YORK

Broadway

CHICAGO
izo

chure, "A Thirty Year Bull Mar¬
ket."

Massachusetts Investors Second!
Fund—Reports total net assets of
$17,880,516 on May 31, 1946, equal
to $18.53 per share.
This repre¬
sents

to the
period of years
of using the tool of diversifica¬
tion
with
professional manage¬
over

a

ment."

and

Distributors,

Knickerbocker

Mutual

Fund

Calvin Bullock

most

Securities

cal

.

siderations
.

.

.

a

Hold."

discusses

It

the

problems of investing and sug¬
gests a solution in language and

folder

new

Aeronauti¬

Hares

.

Ltd.—

analyzing bank stocks.

National Securities & Research

.

issue

of

National

discussing

dustrial Stock Series.

.

.

versus
on

In¬

.

Dividends

at¬

to

A

on

Current issue of Investment Con¬

"To

published

and

$12,500,692

Literature

—

memorandum

and

of Knickerbocker Shares,

tractive little booklet entitled,
Have

of

amounted to $13.06 per share.

"Trading
Investing"; Revised folder

To Have and to Hold

just

in

share from the
31 of last year,,

assets

net

Corp.—Current

sponsors

rise of 41.8%

a

May

on

when

Notes

have

gain of $5,379,824 in total

a

assets

figures

"This record points

ages.

What Are

Incorporated Investors—A divi¬
dend of 20 cents per

July

1946

31,

record

share payable
shareholders of

to

27.

June

"Appropriate Monetary
Measures"?

(Continued from page 3470)

the policies of the New Deal were

follow that tnese econumic desid¬

predicated on just such "social
gains" for the urban population,
that is, on "full production and

erata

can

be

guide for monetary

a

action.
The

level

of

production

and

employment rises and falls char¬
acteristically in the urban rather
the

than
In

field

rural

the

agriculture

those

activity

of

in¬

changes
of prices

volved

are

During the late lamenteo

thirties
New

the

Deal,

anc,

in

gains" of the
perhaps unwitting

parallel with Soviet policies dur¬
ing the same period in trying to
build
up
urban
industries,
so
neglected the rural "proletariat"
as to produce a situation in which
its wage

South LaSalle Street

LOS

ANGELES

ZloWest Seventh Street

employment" in the urban sector
at
high,
non-competitive wage
levels. Why should agriculture be
left to the tender mercies of com¬

in an economy which
paternalizes the urban industry of
petition

the nation?

"social

level

relatively the

Walter

he

when
Town
are

Reuther

put it right
recently on the

said

Meeting of the Air that we
deeply in govern¬

involved

ment

by pressure

What,

groups.

then, is the way out of such a sit¬
uation? Can it be aught but mon¬

lowest in American history.

etary, since this is the only field
in which all interests should and

Upon this depressed farm wage
was
erected the "cost of
living

In the field of

index" which is still the

is

of the OPA's

interests

was

objective
struggle to "hold the

line." Naturally

meet

could

on

supposed

the

to

economic

undertake to control, not

prejudice, only

economic controls

but

ra

her

living that

a

inflation,

price for the cost of

was so

established

as

to

the factory wage earner'?
expenditure for food to the lowest

reduce

on

record,

only

20%

of

his

in¬

action
stability

maintain

can

with

fairness

Indeed, the extent of other

to all.

is

competitive

serve

without

monetary

plane?

same

government, which

enough, the "farm
bloc" is increasingly bitter in its
opposition
to
measures
which

government

by

largely by the in-

determined

appropriateness of mone ary ac¬
and such other economic

tion;

controls

much

have

to

with

do

making appropriate

monetary ac¬
come!
tion difficult if not impossible. The
The plea wnicti the farm organ¬
prime objective of monetary conizations can and should make is
rol should be to minimize other
"seeking
.

consideration of

.

.

our

any

the
nar¬

individ¬

ual

Investors

from

Co.

performance of this
fund against the averages yearby-year over a 13-year period. In
11 out of the 13 years Common¬
wealth
outperformed
the aver¬

row

Mjodton

\

of

sponsor

Investment

they are not
right solutions by

Custodian

the right method in investing. For
the full answer get hold of a
copy
of Hugh W. Long & Co.'s bro¬

net asset value per

folder

new

a

they

are—theoretical of course—if
you
use the wrong method as
against

net

Commonwealth

that
120 BROADWAY

Now York 5, N. Y.

sev¬

wages.

stated.

are

curities & Research Corp., ask the
above
question in their current

Prospectus upon request from
your investment dealer or

overcapacity

impression,

tion

We Go From Here?

&

the next

over

current

and when steel stocks
lagging because of this gen¬

eral

By significant coincidence, per¬
haps, two leading sponsors, W. L.
Morgan

1,364 to 1
Some Odds! But that's what

months.

widely

war,

material.
Where Do

Priced at Market

its

of

steel demand would

outlook

market's favor

aid of charts which
any

layman can understand.

prices.

"Seasonal factors will be in the

eral

with the

the regu¬
"seasonal"

to

summer

"Wall

the steel industry itself was

that

"Considering

in¬

current

a

the

on

spite of the cloudy out¬
look for capital under a Socialist

vorable

major

the

quotes

government.

FROM

YOUR INVESTMENT DEALER OR

the

Fund,

point upward!"

Distributors Group, in

in

sufficient

stock

Britain in

63 Wall Street

the

that

of

Research

and

More About the Steels

factors

been

Securities

Corporation

even

common

they

the conviction of the

been

National

Government deficits,
rates
and
sharply
in¬
creased commodity prices.
These
have

that

contend

hardly

outweigh the inflationary factors.

shortage of steel for autos. To the
of quoted material, this sponsor adds:
"As far back as mid-1944, when
low

supply

interest

up

in stock

countries—

increased

money,

push

we

flationary factors do exist but one

Steel

"Strong inflationary forces have
greatly

needed,

were

more

has

points

sponsor

larity of

advantage

speak of and very little private
debt outstanding. True, a few de¬

Britain, the London market has

been

follows:

as

might point to the fact that there
are
hardly
any
inventories
to

It

Union Common Stock

a

power

continued to advance.

a

of "life," this sponsor

years

dices still

Socialist Government is in
in

during
Also,

of their 1926 highs.

"In

Investment

current

this

Bulle¬

Investment

current

a

on

earnings

porate

can

here

market.

London stocks

above

its

concludes

Average against that Of in¬

vanced

A PROSPECTUS ON REQUEST

in

Timing service surveys 1946 cor¬

Keystone Co.'s current Keynotes
charts our Dow-Jones Industrial

the

BUILDING

National Securities & Reasearch

more

International Inflation

Stock

3.3%."

the current bull market has a few

sponsors,

Regarding the steel stocks, the
Long Co, states categorically: "If
the anticipated period of great in-

the Average is

Corp.,
dustrial

that the two leading spon¬
In the Long Co. folder on the
industry-type funds are
currently
stressing
the
values Building Industry the conclusion
reached
that:
"All
evidence
available in the "heavy" industries is
—the
steels,
building,
railroad points to higher earnings for
supply companies for
equipment, machinery and related building
ever,

earnings of $13 and $15 would
$9.10 and $10.50 respectively.
Dividends of $9.10 for the Aver¬
age would yield 4% at 227 and
dividends of $10.50 would yield
4% at 263. The current yield on
be

tin

Thursday, June 27, 1946

interests" in protesting such
prieing policies as would restore
the
prewar
situation.
But the
trouble is that

they are not doing
that. Instead they propose only
the ancient and illusory devices
of
government
subsidizing and
pegging of incomes and prices in
agriculture. This they are able
to justify, alas, by the fact that

government controls and so
nate

government

elimi¬

pressure

by

"That government is
least."

groups.

best

which governs

Production Retarded by

Inflation

being widely assert¬
ed that production alone is capa¬
ble of preventing inflation (that
we will shortly find! supply catch¬
ing up with demand, so that con¬
While it is

trols

can

ment

who

removed), this state¬

be

is not aecfepted by
do

not

students
their
influence of

exclude

considerations

the

from

monetary conditions and so know,
stated by Governor Szymczak,
that
economic
stability,
which

as

„

necessarily includes prevention ot
inflation, can be attained only if
monetary conditions are favor¬
able. Moreover, insofar as produc¬
tion may be attainable under in¬
flated monetary conditions, it is
not the function of
act

in

that

field;

government to
is it true

nor

that, with inflated monetary con¬
ditions, the removal of price con¬
trols would

assure

full

production
Rapid-

and distribution activities.

Number 4502

^Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

ly rising prices might easily inter¬
fere evert more with the stability
between

relations

of

the

urban

and rural interests and their trad¬

ing with each other. The fact is
that
when
there
is too much

there is only one thing
possibly remedy the sit¬
uation, and that is, less money!
Moreover,
there
is
just
one
monetary condition that the gov¬

reckoning impossible by

peacetime

supressing the normal indicator of mone¬

tary

excess

rising and

dicator

and

iound

price

in

money,

staple

that can

defiency, to wit.

to

falling prices. This in¬

or

a

is

index

of

ernment

should

and

can

control,

and that is the quantity of money,

includes—must

which

of

the extent

bank

include—

deposits

sub¬

It is these so-called
that
are
the
chief

ject to check.

"deposits"

inflation.

of

During the
they have been created chief¬

source
war

ly by the lending of "credit," socalled,
to
the
public
treasury
rather than to corporate treasur¬
ies or other private accounts as is

the case in time of peace.
not

It matters

is
it

whom money

to

loaned; it does matter by whom
is loaned, when we are consid¬

whether

ering
that

not the result
inflationary,

or

be

cannot

or

can

whether or not the loan
the supply of money.
If the loan is a private loan (or
investment), that is, if it be not
is,

affect

can

made

by

bank,

a

it

cannot

be

either inflationary or deflationary

this

in

if

But

sense.

it

be

made

by a bank, it can be inflationary
by
increasing
the
quantity
of
money;-and if made by a commer¬
cial bank it always is inflationary
in
being negotiated, and defla¬

in being discharged.
If
banking operations are not either
inflationary
simply

or

because

moment,

to

deflationary, it is
they happen, at
balance the one

against the other. But the nature
of
banking, as now conducted,
does not

preclude, as would be the
in lending confined to actual

case

savings, the difficulty inherent in

This difficulty

present practices.
careful

deserves

put

in

it
has

the

words

the

(to

Vincent

of

Tribulation")

"Economic

Vickers'
"it

analysis, for

stood, and now stands, in

and social
betterment, thereby creating uni¬
of

way

progress

versal

by

and

unrest

obtain

otherwise."

obtained

with

It

is

be
un¬

ment

It

is

not

to

urban wages,

be

expected

employment,

duction will

remain

determined

and

valid

index

while

advocated

be

a

a

and

determined

living costs are being
by labor unions and

great

a

nor

(by

bank

"sound"
tion

of

credit

issued
the

labor-saving

which

results

uneconomic

in

The

who

unem¬

This

is

the

art

1

Investment

essence

very

the

of the

extensions
forced

by

n

of

the

but

profit

or

investments

)f

romoted

bank

to

put

that

developments

vantage

at

all

the

brakes

have

over

any

free

enterprise

such

a

by

book

of

utilization

condemned

assets.

warranted

foi

or

socialistic scheme

by

forced

saving,

with

the

truth

preventing the "crises" devel¬

oped

Sci¬

of

tion
out

its

inventions

result

the

was

of

un¬

when

monopoly,
difficulty

in

of the situa¬

as

Lord Stamp pointed

them,

in the fact that in¬

rests,
to

of

as

it

of

to

bank

by

will

afford

do so,

troubles

our

Returns

new

is the
with
be

should

,

monetary

competitive

neither

hand

one

as

from inventions. How¬
benefit
of
invention

the

new

values

capital

(capital gain) cannot accrue withreference

out

to

existing tech¬
As long as the displaced

be

can

maintained

in

sufficiently

competition

to

the

ment,

latter

cannot

be

eco-

with its

other

capital loss involved in keeping
equipment in competition with

the

idea

new

interest
can

be

on

any

do

as

it

can

pay

residual value that

sustained

that

costs

long

as

not

by

replacement

exceed

the

re¬

A

This advertisement. appears as a

Monetary

It

This

A

nnder

no

r.rcnmstanc.es

be

to

construed

high official of the National
for sale, or as an offer to buy, or as a

the "Chronicle,"
recently reiter¬
ated what seems peculiarly diffi¬
cult
to
establish
in
the public
City

Bank

May 23,

mind

(see

such

2781)

p.

the educated public
comprehend the source
in
banking opera¬

(even
not

does

of

is

Securities. The offer is made

as

an

are being pegged
interference with
production and marketing, espe¬
cially in the field of staple food
crops. If government action is not
confined to the monetary field in

by

result

any

little

too

The
When

The Census Bureau at
on

the

active

and

all

about

the

(without

tile

the
by

to

CIO

559

bales of

of

linters,

732
of

linters

bales of

amendment.)
ef¬

Price $3 per

the

be¬
occasion for equally fu¬

falling

attempts

at

prices

that

bales

of

Copies of the Prospectus may
where the

dumping food supplies in the sea
or
on
"foreign
markets," then

undersigned

share)

undersigned only in such States
compliance

with the securities

laws thereof.

there is too little money.
The

criterion

or

indicator

for

monetary action is therefore the
level of prices, in some sense or

other;

and

everything

that

cAllen 6 Company

the

government does to try to control

prices

or wages

terfere
or

directly

by laws which in¬
with production

employment, can only have the

effect of postponing the

evil day
of reckoning with monetary con¬
ditions. It may even make that




June 21, 1946

April and 830,414
130,693 bales of

and

May,

1945.
ending May 31

lint and

874,352 bales of

ing period a year ago.

offering of these Securities

legally offer these securities in

in

which compares with 8.109,014 bales of lint and 1,258,475
bales of linters in the correspond¬

Share

be obtained from the
may

compared with 813.and 89,442 bales

linters,

restricting pro¬
short¬

working hours, plowing up cot¬
ton, and killing little pigs or

871.-

consumption was 7,643,441

cotton

duction by laws compelling
er

to

84,830 bales

In the 10 months

OPA

such legislation

as

lint

in

linters

lint and

of lint

bales

only by means of the Prospectus.

per

report

May, 1946, cot¬

amounted

consumed

solicitation of an offer to buy, any of

value of 50 cents

Washing¬
its

consumed in the
hand and
spindles
in
the

In the month of
ton

share, equivalent in United States currency

the par

When there exists a pres¬

for

comes

crippling

make

fective.

of

control

inflation

cannot

sure

raving

(Par Value 1 Peso per

cotton
cotton

Capital Stock

variably failed of their objective,
then there is too much money,

issued

18

month of May.

for

rising prices that is the occa¬
price control,
which in the long run have in¬

June

showing

pressure

sion for attempts at

the

United States, cotton on

obvious:

should be
exists

there

that

be

May Cotton Consumption
ton

money?

answer

only

can

eco¬

agriculture,

industry.

question arises, then, how are we
to know when there is too much
or

for

appropriate criteria for monetary
action will be lacking and there
can
be no economic stability for

702,302 Shares

be, the source of
The

create favorable

to

conditions

tions), namely, that whatever the
may

prices

government

THIS DOES NOT REPRESENT NEW FINANCING

inflation is too much money.

appropriate monetary ac¬

tion when

inflation

symptoms

marketing, on the

or

(deflation).
therefore not possible to

is

matter of record only.

Index

an

hand

conduct

of its obsolescence determines the

old

by

or

government restraints on,

production

1

nomically introduced. The degree

(inflation),

agricultural "adjustment" admin¬
istration
(AAA, CCC, etc., etc.)

erty by force and establish arbi¬
trary incentives.

field
of
food sup¬

or

provided the price structure
controlled by a price
(an OPA) on the

ply,

communize prop¬

attempt to

staples

agricultural

serfdom that

the

a

exorably

sav¬

bring in the savings (out of de¬
preciation allowances) necessary
to displace it with new equip-

sponsored

Frustration

"The

titled

of

source

niques.

Professor

by

financing

prematurely

| equipment

British scientists
Bernal, en¬

of

group

a

producing
the

because

ever,

is exemplified
that

as

monetary

remains

competent index of
conditions in the in¬

the

a

may accrue

'

of

and

prosperity,

of

than

ing except

ence." in which the postponement

investment in highly durable cap¬

The Russian

problems.

industry

price struc¬

or

there

But

nomic

instability.

"conspiracy of si¬

a

monetary

on

headed

industry may have had time to
develop
the savings needed
to
amortize the increasingly heavy

com¬

confined to those who do the

of

because

urban

indicator

an

its effort

very

go

in

in¬

with

instances

some

"sound" collateral

persona

sciences

as

needs.

sensitive

patent. In¬

credit,

idea

but

all

in

secrecy

industries

prize¬

England,

involve

to

ad¬

nothing wrong
monopoly
within

however,

that of

some

ture

to the inventor

Their naive and ardent opposition

dustry, regardless of whether such

ital

get

of

way

stead

in

in

unfits its condition

where that is of greater advantage

they have reserved to them¬ II
predilection for what

lence"

are

are some
as

problems

become

he has called

on

existing

the

selves their

or

all

unemploy¬

by patent laws. It develops also by

finance

of

There

to

these

physical

while

by

labor

ly established by land tenure and

along with them
in their opposition to laissez faire

saving, that makes trouble

failing

facts

chemistry

his failure to

fact

credit,

in

has

the

forgotten

is

private

grata among his confreres in

non

difficulty in tne "capitalist econ¬
omy." It is not the fact of private
property

the

happened

and

Saving"

of

what

of

and

There

idea

no

Dr. Frederick Soddy, Nobel

ployment.
'Forced

of

who have

exceptions, such

winner

today

assailing, perhaps
unwittingly, the very citadels of
private property.

existing

result

organized.

notable

existing
employment; such competition, fi¬
nanced by "forced saving," causes
and

the

groups

as now

competition for both

utopianism

petitive industry. It is deliberate¬

is

whatever

and

production

technological

ment

thinking of technicians and other
erudite

"modern

have

about

actually earned

as

complicated involve¬

evanescent values that

involved

are

is

leaders

theory behind the Russian

procedure

against

machinery,

obsolescence

supply

the

lest

ments and

administration

of

Marxian

al¬

for

within

was

techniques" and keep "their plant
equipment antiquated."
In their

saved.

and

labor and capital in their

wasteful

in

The proper

Motors

these

they "go to seed" in their under¬

the

construc¬

excessive

to result.

that

General

the

All

standing

injustice and cruelties which

over-financing

collateral)

of

accept

result

sure

money

of labor

excess

they

can

to

as

case

the corporation's management

suppression and
to conceal from the public

investments

premature

"ability to pay" musUbe prodded
even
to the point of supervising

removing the diffi¬
culties involved in forced saving
is
to
stop
forced
saving alto¬
gether and confine all loans and

ac¬

stop
innovations
in

against

iron curtain of

ternative

the results of depression on
wage levels competitively deter¬

results

futile

so

to

interest of stability? On
contrary, the thesis of their

sev¬

are

cept

by

are

undertake

the

the

ceiling, on the wage level.
Organized labor
cannot,
under

similar

doctrin¬

a

purchasing power, would

UAW-CIO

such

our

secrecy

a

supply;

of

that

The effect of such wage
negotiations is to put a floor, but

mined

such

professor of economics in

an

demand.

conditions,

the

colleges.
The result¬
ing, chronic inflationary devel¬
opments require constant, auto¬
cratic
controls
(like our OPA)

oi

unstable monetary

ment and

"planning"

and

by

govern¬

shouting
and
keeping up employ¬

over

by

invention.

new

Conclusion

their

all

i tumult

Lange in his writ¬
American citizen while

as an

eral

the
laws
governing their "bar¬
gaining" in a way that necessarily
abrogates the effect of supply and

not

by

duced cost-income ratio set up
the

obsolescence and unemployment.

Oscar

as

ings

competitivelv

therefore

ownership

aire

monetary needs,
conditions of employ¬

the

ment

that

or pro¬

results

often de¬

are

create untimely

and the tendency to¬
goes with

ing unrest
the

cannot

principal

its

to

as

the basis of the exist¬

doubtedly
ward

tendency to

a

what

force

in

as

tionary

the

prices

so

With

deal

be and

can

veloped

scheme

a

financing investments and to

markets.

crop

ventions

toward

conditions, is

openly employ such

for

be

average

moving

to

tendency

chronic deflationary

3499

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, June 27, 1946

HIGHER BANK EARNINGS TABOO
There is

rfOur

Reporter

that

assurance

deposits developed which carried

Federal controls

new

security purchases would be effective in halting credit ex¬
pansion, because if other types of assets were expanded, there would
be no decrease in the amount of credit.
The asked for power to
increase reserve requirements within specific limit? and to make it
uniform for all banks is no doubt for the purpose di regulating other

Proposals by the Federal Reserve Board calling for
revolutionary
over the banking
system, heavy retirement of Government
bonds, which sharply reduced excess reserves, coupled with a jittery

assets.

controls

uncertain

Government

equity

securities

changes limited in
caution

and

bonds

.

.

hit

to

which

continues

the

bids

so-called
let

or

When there has been

.

.

speculative

holders

amounts

of

their

of

minor shading of prices volume has
come in the market, indicating that the
a

technical position of the market is favorable.
It should con¬
to improve.
For the immediate future it is expected
that the Government bond market will continue within a
...

tinue

.

.

any

not

want

conditions.

move

from weak to strong positions.

.

.

digestion of securities that were not properly distributed
the Victory Loan, is affording inyestors an opportunity to

during
acquire obligations at prices that give

satisfactory income.
This
been and still can be done through scale
buying with sizable
purchases in order, if there should be periods of weakness.
It
a

.

.

.

has

future, when the
supply has been taken out of the market,
it may not be possible to acquire securities at as favorable
levels as
have been prevailing.

proposal to

be

held

seems

to

be

by

.

which

only

banks of

be

.

the

and thus
reserve

supply

.

.

these
ment.

THE

.

.

.

a ten-year rec¬
showing the loans of all com¬
mercial banks, those of the re¬
porting member banks in your

of the

monetary

deposits,

should

holdings by
(in place of bonds)

.

.

and

eligible

certificates,

be

buyers

...

of the

reserves

to

to the banks, and then immediately increase
offset the new reserves created by this

At what levels would non-bank investors be attracted

by the deposit banks?

.

.

.

The

commercial

to

likely to

memiion

able

and

fact

the

that

nection with the deposit

.

non-marketable issues?

be

needed

investors?

.

District

to

transfer

.

Would

.

.

to

as

for

special

making

the

deposit projection.
Then,

the chart for your own
draw a horizontal

on

bank's

loans

line

a

do

at

not

level

above

estimate

which

you

loans

your

are

label

and

years

next

that

line

Maximum."

With

uncertain

an

a

"Deposit Minimum"

a

"Loan Maximum"

and

United States Govern¬

amount of

Gov¬

fixed, the

so

ment securities

maturing

likely

or

to be called within two years

the bands to non-bank

re¬

quired in the Secondary Reserve
determined

The recommendations that have been made
Board

serve
as

well

ideas

to

1.Add

by the Federal Re¬

by four easy steps:

the Congress contain a

as

those embodied in this report could inject

as

posit

between

Minimum"

the

to

dif¬

ference between current loans

major

economic system and curtail the

and

the

business, the public and the Gov¬

The

total

financial and

our

new

difference

deposits and the "De¬

current

number of drastic proposals,
features of the 100% Reserve Plan. Untried revolutionary

such

the

"Loan
will

Maximum".

represent
to

needed

the

meet pos¬

ernment, which might exaggerate rather than prevent business fluc¬

.

BOARD

CREDIT

amount

sible declines in deposits and

any

.

.

.

.

.

increases in loans.

These disturbances could bring about demands for national¬
izations of the banks, in order ito undo the harm caused by the

PROPOSALS

adoption of these proposals.
This could
complete change in our form of Government.
.

.

pave

.

.

2. Add

.

.

Admittedly

would

to use the democratic

system.

.

.

.

.

.

INTEREST RATES UNCHANGED

Federal

Reserve

Board, because of the indicated

need

to

keep interest rates low, has decided to abandon interest rate
changes
method

of

credit

control

in

favor

of

the

greater

powers that
could be obtained, through direct control over
security purchases of
3mmercial banks.
Certificates of indebtedness will be main¬
.

lined at %% and

.

.

long

that is done, the commercial banks are
a position to
sell these securities to the Central Banks and use
i proceeds to
buy longer-term higher coupon issues.
To prevent
so

as

banks' security purchases.

over

A rise in the certificate rate

of,

say,

.

.

.

%%, would increase the

debt

burden, but it might be much better to pay this increased
debt cost, and continue with our
present system, rather than have
the mistake-ridden monetary authorities
push us into something
that would be much

worse

than

we

total

Management

(Continued from page 3472)

their

of

count

Secondary

investments

count.

There

lump

is

have been through yet.

.

.

.

Reserve

Ac¬

Investment

their

and

Ac¬

tendency to
investments together.

all

a

Nothing belongs in the Secondary
Reserve Account but high-grade
securities
maturing within two
bankers'

years,

acceptances

...

the Board wants control

current

and

deposits

to

of

loan

movements

Federal

Federal

your

in the Investment Account.

ord

the

quality and maturity
Secondary Reserves so limited

the

size

of

oenalize
If

it

it

is

too

income

is

too

it

a

member

rec¬

and

prime commercial paper.

and your own bank. Past relation¬

or

the

years.

may

force

carefully noted.
Then, deposits for the next

likely to be called within
two
years
required for

Secondary Reserves.

two

needed

expected changes in loans and in¬
vestments, taking into considera

Account should

of

long-term securi¬
are depressed.

tion such factors as business con¬
ditions and the probable demand

not desire or, as
the
liquidation

an

ties when markets
In

the

case

of

the

Investment

Account, to the extent it is limited
United

to

States Government

se¬

for

currency

serve

in

ft/•

INVESTMENT

BANKERS

Other

Leading Exchanges

UNDERWRITERS AND DISTRIBUTORS OF
INVESTMENT SECURITIES

Private Wires

•




movements.

conformity

with

the

estimate

all commercial banks in the
light of experience, corrected for

district.

for

times

income.

If

it

due
is

to

nressure

too

long, in
declining prices, or
continued low prices, future in¬
come
is likely to be penalized as
the result of inability to lengthen
of

maturities without accenting large
losses

when

such

otherwise

be

lengthening
effected

to

advantage.

•

credit,

for

opportune

STOCKS, COMMODITIES

Home Office: Atlanta

at

banks

District should be projected

soecial

could

y

BROKERS OF BONDS,

forced

commercial

Next, the deposits of the report¬
ing banks in your Federal Re¬

high
prices, with perhaps an undesired
lengthening of maturity at in¬

periods

Members New Yorlc Slock
Exchange and

be

all

Treasury and
Federal Reserve actions, gold and

continued

high prices income is
likely to suffer over the years and

for

bank

curities, the maturity distribution
is of prime importance. If it is
too short, in periods of rising or

reinvestments

As

the
is

important.

may af¬
deposits of banks in your

Remember

its

function is to provide funds from

Appraisals

your

deposits

own

After each
of

by selling

the

funds

to

the

in

ments

Between
the

posits

or

the repayment of loans,

decreasing

creases

period

a

should
your
your

then

of

two

consider

you

much

deposits might decline if
estimates proved to be in¬

correct

and

a

major

decline

in

from

as

funds

are

investments to meet
of

deposits

and

in¬

in loans.
Investment

the

years

how

as

invest¬
because of the inflow of de¬

withdrawals

deposits

increasing

funds become available for

influences which may affect
your

own

day-

reflect

should

operations:

deposits.

projected

the invest¬

Secondary Reserve

appraisals, the size of

account

needed

your

increase

Account.

District, also corrected for special

of

securities from

the Investment Account and using

and

having

account

the

in

be

rected

ing banks in

After

semi-annually.
appraisal, any excess

liquidated
and
the
funds used to buy securities ma¬
turing in more than two years.
Any deficiency should be cor¬

ment

Federal Reserve

be made not less

investments

should

should be projected in
conformity
with the estimate for the
report
your

amount

the

of

the Secondary Reserve

in

frequently than

to-day

Finally,

for

previously stated the size of
Secondary Reserve Account

all

influences which

fect the

movement

Secondary Reserve Account

Phone ID-l 59

maturing

securities

ernment

ships between all three should be

should be projected in the light of

or

the

be

amount of United States Gov¬

ment

may

will

difference

The

years

alternative,

amount

the

from

borrowings
in
amounts
or
for
periods of time which manage¬

intermediate

Re¬

Secondary

Secondary Reserves
the total of highgrade cor¬
porate and municipal obliga¬
tions
maturing withm two
years,
bankers'
acceptances

deposits of all com¬
banks,
the
reporting
banks
of
your
district

mercial

in

needed in

and

ten-year

in

serves.

it will

large

over

small

needed

the

of

amount

declines

and

4. Deduct

all-im¬

the account is

portant. If

The

meet

difference will be the amount

by your own records.
deposit appraisal should

start with at least

With

Bank

the

from

to

tial Free Cash Balances." The

and

Reserve

as

Free

increases
in
loans the "Actual and Poten¬

by

Board

Potential

and

deposits

shown

s

prime
commercial
paper.
All
other investments should be held

of

reported

as

Reserve

This

described

be

may

needed

meet

greatly facilitated by the use
charts showing past deposit and

the

the

to

Cash Balances".

So the first steps to be taken are
to
appraise
deposit
and
loan
movements. This undertaking will

be

levels

Minimum".

3. Deduct

declines in
increases in loans.

and

the

declined

deposits

"Deposit
"Actual

Portfolio

ex¬

in

released

that

from

Government Bond

Too few bankers in my opinion
think sufficiently clearly in terms

.

be

event

.

destroy.
Greater con¬
enlarged power over business and
industry which is what has taken place in nations that do not profess

in

balances

cash

of

legal
reserves
the
amount of legal reserves that

.

.

to

cess

the way for a

increase in interest costs to the Government,

the direction of credit, embody the
power to
trols over the banking system mean

s

when

as

Account at any given time may be

large: debt
service, the Board puts forth recommendations that call for greater
regimentation of the nation's banks, which could be the first step in
a change in our form of Government.
Absolute control over, and

i

loan

own

allowances

and

influences

because of the tremendous size of the debt and attendant

t

your

regard for past relation¬

same

ships

two

refunding operations, that

debt from

services that the banks render to

the

.

•

and

...

disturbances into

see if there will be a reestablishing of
long-term, higher coupon obligations, by
there was following ithe March 15 bond retire¬

unwilling to allow

a

appraisal,

here. All that

over

remains is
to
project the loan
figures for the reporting member
aanks
in your Federal Reserve

"Loan

BANK NATIONALIZATION THREAT

Proposals submitted by the Federal Reserve Board to the
Congress call for a drastic change in controls of credit through
greatly enlarged regulations of the commercial banks.

as

con¬

.

interesting to

RESERVE

The

be carried

all

in

..

ernment bond market be conducive

would

can

they would be sellers of

Would not a dropping bond market be
liquidation of individual holdings of both market¬

cause

banks, made

likely to advance witnin the

Government bond market be pretty much in
demoralized state if the commercial banks were eliminated as

not

relationships

figures. This should be done with

Would not the

a

past

noted carefully.
loan
projection
for

be

tuations.

banks,
.

bills

to the bonds that would be sold

.

$9,302,000,000.
Follow¬
ing the retirement of the 3%s on March 15, the New York City in¬
stitutions became consistent buyers of Government
bonds, which
carried their positions in these obligations to all-time
highs on June
12, of $9,845,00.0,000.

start with at least

ord

.

requirements

operation?

on

chart with a horizontal line
and label it "Deposit Minimum."
The loan appraisal should also

the

would

longer-term securities?

levels of March 20, when they amounted to

toward

part

longer.-term obligations that
would have to be sold by the commercial banks under the
proposed
new regulations?
Would the Central Banks buy these obligations

June

on

curities, with $553,000,000 being retired, which brought the bond
holdings of these institutions down to $9,292,000,000, or about to the

It will be

the

on

be acquired from Federal or non-bank
investors,
shift in positions, and not demonetization of debt?

buyers,

.

this trend

failure

would

a

Who

.

.

of

long-term securities that
against demand deposits,

banks

.

commercial

those anti¬

your

.

the

15, reduced excess re¬
serves
by $220,000,000 to $550,000,000, the lowest level since 1933.
This condition, however, is
expected to be temporary.
The
New York City member banks were the
largest losers of these se¬

.

of

amount

commercial

monetization of the debt, which would result from the sale of
bonds to the deposit institutions.
Would not larger

EXCESS RESERVES AT LOW POINT

.

the

limit

the

authorities to control the sale of eligible bonds by non-bank holders.
These new powers, it is claimed, would prevent the continued
.

below

own

admission

an

levels

to

cipated. Mark this lower level

of

The
could

.

The retirement of the 3s and SVss

them

Federal Reserve District and your
.bank. Again, as in the case

...

PREVIOUS FAILURE

...

should be borne in mind that in the not too distant

bulk of the overhanging

.

.

.

QUESTIONS

The

.

.

.

BUYING OPPORTUNITIES

.

effective than

There is one thing sure, the
that would increase bank earnings

anything

.

trading

securities

range, as

under

price

.

higher short-term rates.

does

the

on

with

There is still doubt that this would be
/more

.

somewhat

a

sizable

out

positions because of fear of lower prices.
declined and support has

effects

firm

.

Board

tendency toward
purchasers, there has been no

some

of

part

appreciable

no

While there is still

.

among

the

on

had

market,

scope.

hesitation

disposition yet
Government

market,

.

.

.

.

By JOHN T. CHIPPENDALE, JR.

and

commercial

over

bank

99

on

no

Account

As

orev'ously stated, to the ex¬
tent that securities in the Invest¬
ment Account consist of United
States

Government

obligations,

maturity distribution is the matter
:

4

T4

<-.V\

/-.i

11 rl

hfi

Number 4502

kVolume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

modified with the

arranged and

objective of stabilizing or increas¬

in so far as may be,

income,

ing

adhering to sound invest¬
principles.

while
ment

whole book could be written

Account at the recent rate to re¬
tire debt, it is currently estimated
that

total

mercial

$150

deposits

banks,

billions

for

all

which

com¬

at

stood

December

on

31,

character not foreseen, there is
nothing to indicate that the busi¬
ness needs of the
country will ex¬

a

ceed* the

for

here considering

1945, will decline in 1946 by about
$22 billions, and in the next two
years rise about $3 billions.

only bank investments in United
States Government securities, they

that total loans for all commercial

alone

banks, which stood at $26 billions

times

A

investment

sound

on

but

as

are

we

be boiled down to these:

may

1.Keep

2.

principles

middle-of-the-road

a

position; that is, one not pre¬
dominantly long or short.
Stagger maturities in so far
as
may
be without undue
penalty to income, bearing in
that the

mind

importance of

having
issues maturing in
each successive year dimin¬
ishes as the date of maturity

December

a maturity
than is entirely ac¬
ceptable to management and

be

cannot

retained

crease

in

in

next

the

in¬

loans)

and

rise about

years

the

based

are

on

following assumptions:
the

volume

trade

and

in

pand

will

1946,

be

to

probably ex¬
1947 and 1948.

about

and

budget will

balance

in

calendar years
1948

rates.

realized,

for

the

1946, 1947 and

and

used

trust

funds

investment

securities,
retire

to

and

Government

for

Government

in

will

short-term

Treasury debt. Since most of
this debt is held by the banks
will

retirement

in

flected

more

such

is

rates

necessary.

In

will

way

be

theory, of

be

reduction

a

re¬

in

law

and

Government

States

those

now

reserves

the

at

the

per¬

secuirties

loans

required

for

what

an

advance

cost

When it

To

outlook

for

interest

must

will

rates

of

all

not

to

up

The

the

ties

Investment

held

amount will

the

in

all securi¬

Investment

interest rates, the

servicing the public debt
be increased and,
to that

for as

corporate, the total of issues ma¬

approximate

next

the

two

to

one

the

maturing

to the movement of

five

with

the

in

total

maturing in

expect them, as measured

of

total

Government
one

to

issues

ten

maturing

years,

with

more

than

third

in

not to go

more

all

of

issues

ten

to

years,

obligations

than ten years

bonds, mortgages and loans

together

States

United

fully-taxable

—

yields

by the average of indicated

from

Ac¬

count, Government, municipal and

I would say that, barring
developments not now foreseen, I

on

Tak¬

Account:

turing in two to five years should

over

would

loans.

individual banks.

ing into consideration
adds

in

than that I cannot

years

sus¬

of

with

vary

definite statement were

a more

rates

of

increases

and

specific

be because the proper

suc¬

ahead.

called

Account, to meet declines in

More

probability that we are likely to
relatively
low
interest
rates
for
an
indefinite
period
If

deemed

assets

ma¬

years,
with
suitable for

of

real

estate,

capital funds

time

or

—

not
one-

deposits.

necessity

officials

few

this

two

most

limit
When the
outlook is for the their efforts to following current
and
checking
with
continuation of an existing level discussions
those whose opinions they value.
of interest rates, or there is con¬
siderable uncertainty as to how Indeed, in a managed money econ¬
rates may move, it is suggested
omy such as ours, where the acts
bankers

me

maturing when

appraising the

to

comes

in

rapid

as

within

deposits

remains

cession of losses.

to

ceptible of proof. But this much
is certain: to the extent there is

Outlook for Interest Rates

this

encouraged

a

their

on

and all other call¬

States Government securities

witness

worthy

are

will be

cept those involving

current.

question
made

statements

re¬

serves.

the

business

for

maturing

dates

Secondary Reserve Account:
Adequate investments in United

by hope under all conditions ex¬

serious consideration. Many of the

only changes in bank
and investments, after

adjustment

of

outlook

call¬

all

Government

The

credit risks is

to

port¬

due.

turing

as

favorable and

same

side

reflect

and

their

for

treating

States

as

securities

able

other

and

for

first call

be

made keener in the case

Optimism

in

vanced

securities

likely to be evidenced as long as

practice what will they
do? In the maze of arguments ad¬

de¬

putlets

investment

and

United

able

with loans.

go

provide
needed
additional
re¬
except at prices materially
But

otherwise,

money

lenders

among

for

bank's

a

should be set up today as to

maturity
distribution,
assuming
no
special circumstances indicate

substantial deposit balances

that,

serves

below

folio

of banks where, and to the extent
our mone¬

time sharply raise the rediscount
rate
and
refuse to buy United

changes in deposits will

3. That

maturity distribu¬
tions? Where no special circum¬
stances
dictate
otherwise,
the

competition
investors
money,

course,

maximum

by

the supply of

exceeds the demand there will

authorities could forthwith
adopt a high rate policy and al¬
most immediately cause rates to
advance. For example, they could
for

think

result

As long as

policies of
authorities.
For

tary

desirable

the

steps

will

conclusion, and by

in

now

of summary, I will tell you
how,
all
things
considered,
I

be
taken

may

in my opinion, there will be
strong tendency to return to a
rate policy as soon as
possible.

against low rates
there is much to be said on each

posible, to make de¬

on

some

it

low money

Most

of banks.

largely

headway

And

infla¬

of

a

be

to

posits and security portfolios

market, in

outlook for interest rates.

gains

which

their policy today.

mitted

available

may

investment principles,

the fear

that

de¬

years they have had a low
interest rate policy and that is

balances

may

agencies

desirable.

depends

for

monetary

our

call

sirable extensions of maturity.

answer

But

provide some
together with

Within this framework of sound

are

all

meet

continuation of low interest

a

surplus, which

its

to

needed

many

business

of

2. That the Federal

be

6. Use declines in the

if

the

nearer

Conclusion

rates.

course,

tion

■mportant will be the

estimates

These

will be sold on a
temporary price decline.
Avoid taking profits merely
to take profits.
Use advances in the market

basic

billion

anticipated

commercial

two

$1

$5 billions.

they

as

probably
be
many
required to obtain the

somewhat

lower than the higher level.

are,

com¬

as

interest
Of

for

the

that

shorten maturities

in

banks

the

than

cash

far

of

which

greater

from

so

will
that

hands

policies

in between these two

now

are

extremes,

material increase

no

decline

funds

seem

the

continue

Thus, from the point of view of
supply and demand the outlook is

1946

Treasury

to

in

The difference is about V2 of 1%.

that

guess

my

(due to the prospective
in securities loans being

in

than can be
held to maturity regardless of
subsequent price movements,
there is always the likelihood

5.

ties

to

will result in

United States Government securi¬

is

temporarily in
higher interest rates. But if they

fortable with, or

4.

tential

We

sire

when it does, the po¬
supply in the form of

or,

it

1946 or

below the level of March

monetary authorities will de¬

our

reserves

regardless of sub¬
sequent price movements. If
longer term issues are held
management feels

considered,

present supply of money
time to come.
If it

mands.

maturity

than

should,

above the level of December 1944.

of about

decline

net

a

longer

which

revenue from
taxes will be greater than would
the case. All things

31, 1945, will show

on

1.That

lengthened.
Hold nothing with

is

3.

Loans: It is currently estimated

extent, the need for
otherwise be

long

a

3501

have

This announcement appears as a

of an offer to buy the

not an offer to sell nor a solicitation
The offering is made only by the prospectus.

matter of record only and is

securities mentioned herein.

such

that

approximately equal dollar
of the securities held in
the Investment Account be in is¬

of

amounts

far-reaching effects, few bankers

maturing in two to five and
in five to ten years, with the total
of obligations maturing in more
than ten years — i.e., bonds ma¬
turing in more than ten years,

be

sues

plus mortgages maturing in more
than

ten

years,

maturing in

more

plus any loans
than ten vears.

a

can

do much more.

can

of

made

for

mand
acts of

supply
but

money,

men

The FR Corporation

Estimates can

and de¬
the future
cannot be reduced to
the

(A New York Corporation)

figures.
What

have

I

views

as

stating

can

be

my own

to the outlook for inter¬
I

rates.

est

rhind

in

best illustrated by

think

will be
factors: the

they

together with real estate—not more

determined

than

supply of money, the demand for
■r>cney. policies of our monetary
-mthoritios,
competition
among
those with funds to employ, and

capital funds or one-th'rd of
time deposits. When the outlook is
for

declining interest rates and
rising bond prices it is suggested
that investments in the five to
ten

maturity

year

exceed

group

the amount; in the two to five vear
group, with the total of obliga¬
tions maturing in more than ten
years

loans

mortgages

bonds,

—

and

together with real estate,

—

not

more

ter

times

than

one

capital

and one-quar¬

funds

or

one-

half of time deposits.

When

the

outlook

rising

for

is

interest rates and declining bond
prices it is suggested that invest¬
ments
in the
two to five year

those in
maturity
and
those
maturing in
group,
more than ten years be reduced
maturity

group

the

to

five

exceed

ten

year

to the practical minimum.
for

Deposits

Loans

and

and Interest Rates

Up to this point I have tried to
deal
in
fundamentals, good for
yesterday,
What

I

Point

on

today

have

to

reflects

tomorrow.
from this
appraisals of

and

say

five

mism felt by
as

Deposits: If the Treasury, durthe balance of the year, con¬

tinues

to draw down

its War Loan




--..v.—

(Par Value 5(Kl Per

assumed
supply of

considering

In

money

we

not only

the

The

of the

Share)

must take nito account

the actual but the poten¬

actual supply

$5.85 Per Share

Price

tial supply.

in the hands

people, that is currency in

circulation and bank deposits, ex¬

clusive

of

Treasury

and

inter¬

bank balances, is apparently far ir
excess
of the business needs of
the country. It has been

need

A copy

of the prospectus

may

he obtained from the

undersigned

estimated

approxi¬

that

if

today

we

mately the same number of dol¬
lars in relation to the volume of
business

as

in

the last period

of

First

relatively high industrial produc¬

Colony Corporation

peacetime conditions
namely the twent:es, then the
money supply in the hands of the
people is nearly $50 billions in
excels
of
legitimate
business

Courts 8C Co.

needs.

Auerbach, Poilak & Richardson

under

Johnston, Lemon & Co.

potential money sunolv is
enormous.
It
is
represented

Straus 8C Blosser
$

The

that, in some largely by United States Govern¬
ment
securities
held
by
com¬
respects, will certainly have to be
mercial banks and others. When
revised,
perhaps
often, in the
hght of subsequent developments. such securities are sold and pur¬
chased
by Reserve Banks they
However, they are suggestive and
pertinent to the discussion and I give rise to reserve funds which
flow
to
commercial banks and
hope will prove helpful in some
allow them to expand deposits by
measure. They have to do with
multiple, depending upon
the outlook for Deposits, Loans some
the pxisting ratios
und Interest Rates.
of legal re¬
serves to deposits. Currently, such
m
ratios for the country as a whole
Deposits and Loans for All

*ng

COMMON STOCK

optimism or pessi¬
lenders and investors

the degree of risk

to

future developments

Commercial Banks

175,000 Shares""1

the degreee of

tion

Outlook

by

permit of an expansion in demand
deposits by about six times the
amount of reserve funds created.
Barring some rise in

prices of

•:

r

f

'

I

Coburn 3C

Middlebrook

Irving J. Rice 8C Company

k

V-';:

>'&

it

First Securities

Jo Co Bradford & Co.
Hancock, Blackstock 8C Co,

Childs, Jeffries &
Incorporated

Thorndike,

|

of

Company

Chicago

Bull, Holden 8C Co.
Grubbs, Scott 8C Company

$

THE COMMERCIAL & FINANCIAL CHRONICLE

3502

The

How Should Bankets View Common Stocks?
loan

this time, it is unnecessary and
it would be presumptuous for me

serviced

to enter into any elementary dis¬

(Continued from first page)
determine
is

whether

good.

Will

not

or

it

be

a

promptly? Will it be paid when
due?
Thinking in these terms
makes you acquire definite men¬
tal habits and organize yourselves
to your environment.

cussion

know the advantages and the

falls, and
sential

Prejudice

Against

differences

and

stock.

a

want

is

es¬

between
I

where

pit¬

understand the

you

this

are
even
prejudiced
equities, ownership,
or
stocks.
Usually your banks are
never
anything but involuntary
investors in ownership. You own
a business, a piece of real estate,
or goods and chattels, only because

creditor defaulted

some

on

loan.

a

Ownership is not your business,
and you try as quickly as possible
to
dispose of the equities you
acquire.
You want only to get
your money back, to avoid loss.
Equity ownership for a bank is an
unwelcome
problem of salvage
and liquidation.
Knowledge

Yet,
must

to

of. Equities

be

know

bankers,

good
lot

a

Required
you

about

Pitfalls

you

the attitude

about

when

business.

general

A

loan

without

theoretically

equity,

of

course

chology

toward

time-worn

custom

and
practice,
equity always is
prime consideration.

the value of the
a

Secondly,
time

some

every

another, is consulted
by clients regarding the advis¬
ability of buying an equity.
It
may be real estate, a business, or
a
stock.
The purchase may be
the

for

tion,

an

of

trust.

or a

sulted

of

account

the

by

institu¬

acting

in

a

fiduciary capacity, or you may be
performing an outside fiduciary
function yourself.

Third, both in the
folios

I

said

with

the

where

of port¬

case

bank

your

acts

as

the

as

consultant

a

in

manager

the

or

handling

a

of

non-bank and non-trustee invest¬
ment

funds,

as

of

well

an

capacities of
trustee

actual

other

constantly

you

in

as

those

individual

people's

money,

being pressed

are

to produce more income than

be

obtained

ditions

under

from

present

bonds

gages. 'Common

and

can

con¬

mort¬

often

stocks

are

suggested

as vehicles from which
better yield may be obtained. You
must be able to
pass
on
them

with

high

a

degree

of

intelli¬

You

must

stocks

have

much

a

knowledge

than

I

of

need

better

common

to

have

a

working knowledge of bonds and
mortgages. After all, as a common
stock specialist,
I always have
bonds

experts

at

beck and
office in fact.

my

call—right in my
You do not always have
ist
in common stocks

a

special¬
at

your

elbow. You

would

Take

to

necessary
economic

bore

you

the

of

Just

age

at

least,

a

day
considerable

and
per¬

centage of more important bank
depositors are investors and
spec¬

ulators in shares of
American in¬

dustry,
American
utilities
and
American railroads.
They want to
talk to you about their
comitments,
and
unconsciously
perhaps even unfairly,

and

they ex¬
pect you to be able to help them.
In fact, you
unquestionably gain
or

lose

eyes

of

caste

as

your

a

banker

depositors

in

the

through

the manner in which
you handle
inquiries on the investment prob¬

lems of customers,
associates.
Ih

friends

and

gages

by

stocks

common

in

debt

in

proprietorship. The investor in
bonds, notes or mortgages is by
nature

banker.

a

stocks

common

entrepreneur
Because

nature

of

the

a

nature

an

and

stock

risk,

rather obvious things should
in mind, not only by
bankers, but by all who invest, or

some

be

kept

contemplate investment in them.

common




of

stocks at

a

and

high as 47 %. Your own
Pepperel Manufacturing has not
missed paying a dividend of some
dnd in any calendar year since
1852; yet, measured on the basis

Investment Maxims

First,

there

must

compensation
When

a

profit

taking

for

stock

a

be

risks.

yields

no

more

to

week.

For

this

appraisal

a

common

back

money

amount.

same

always
in

The

the

fund

at

might

in

of

a bond, a banker can study
his risk in advance and then for¬

or

about

preneurial

other

or

not

are

to

be

From

hedge

the

against

value

63,

in

stock. There should be
reason

specific

purchase.

bond

risk

or

is

about
make

not

a

for

making

There

it.
a

You

can

in

one,

but

day

is

1941

performers

is

pigs,

common

was

Maine

dear

my

1919.

I

preneur.

is up from 3 late

is

not

far

to

which

the

distrust

has

place in
profession. The
vestor

;

,

the

an

entre¬

imagination

banker has learned to

because

small

de

investor

stock
of

tries

to

imagination has
his business and

cmomon

I

two

and,

stopped there

looked
134

owned

were

believe

over

other

his

stocks

paying
it or

profit in every

a

chances.

thing.

He

divi¬

a

not, he

one of

them

I

don't

think

than ten

more

I

have

At

end

seven

years.

1942

of

he

came

about the problem of

me

income

had

selling orders from

the past

the

any big
sells
any¬

seldom

him in

just

father,

who

most successful farmer and

a

This

tax

to

reducing

by

does not try to sell out
top and buy back on the
bottom. He just invests and
stays
put. Of course his

outstanding dairyman in New
England forty years ago, loved

stock in¬

develop vision.
And vision may lead to a mirage
or to a real pot of gold.

man

the

on

"liquidating

value"

fluctuates, but

ahead of the

and

understood

But I know

I

Holstein

their

limitations. My

remember,
butter;

limitations.

he

He

cows

never

knew

tried

always

to

herd's

his

said

that

Holsteins could make just as good
butter as Jerseys; but, when we
could

get it,

butter

ate good Jersey

we

our

lush

Maine

remember

I

that

Dad

on

owned

never

Jersey

a

did not beat him at his
sooner

table.

said

he

that

cow
own

game

later. He did not under¬

or

stand Jerseys. I'm afraid he never
tried. He was one of those hard-

headed

New

Englanders
prejudices
and

nourished
a

them.

of

proud

I

have

who

Past Profit

At

bott

who

one

lave

the

interesting.

life ought to
They make life more
Of course, I have a

prejudice for

partisanship
the

and

stocks.

common

Now, there is

a

for

banker's

place where my
common
stocks
traditional

pre¬

judice against them should meet.
There are some common stocks
which

good long term invest¬
ments, either for an individual
investors or for a trust. Let me
are

New

York,
1925

around

buy

There

prospect

of

saving it out of my
I decided to acquire it

so

shares

little

was

I bought

some

in

Computing-TabulatingRecording, and cashed in a very
satisfact ory
months.

profit in a few

Th^n^Jp&ought

land

six.

It

Over¬

an

good

and
of it.

invested

that

$1,000

car

I

Machines,

ing

was

fact,

outstand¬

company. If I had
that odd lot of stock, which

sold

to

buy

the

Overland

car,

until now, I would be able to buy

twenty. Rolls-Royce
black

market

cars

prices

for

and

pay

them.

know

a

man

who

1933

with

better

or

but

poorer,

in

all

most remarkable apprecia¬
and income, have been pre¬
sented by many other stocks. To
cases,

tion

mention

which

few,

a

is

up

Charles

from

8

Pfizer,

80

to

since

1942, Food Machinery, Sears Roe¬
&

buck

Co., Coca-Cola. Standard

Oil of New Jersey, Gulf

Oil, Bris¬
tol-Myers, Sterling Drug, Mon¬
Chemical, Dow Chemical,
Celanese, G. C. Murphy and East¬
santo

man-Kodak.
In

passing, just notice how few

of these stocks have back of thern
net

tangible
assets,
property
values, commensurate with the
prices at which they sell. Now
turn

to

stocks

some

with

high net tangible assets

very

share.
Western
per

I think,
offhand, of
Union, Crucible Steel. American
Sugar Refining and United States

Steel. There is nothing particu¬
larly outstanding about the long
term investment performance of
these, in spite of the fact that

they

a

"big names". Too

are

stock

"play

many

their
think

ear" in
—
they

by

investments

"big name" must be good, and
anything obscure is specula¬

that

Others

tive.

phasis

too

put

property

on

much em¬
values, not

realizing that they may be in¬
flated, as they were in the case
of U. S. Rubber under the former

management and in Crucible Steel
for

many,

get

that

bricks

many

it

and

years.

They for¬

earning power, not
mortar, which make

is

investment values.
Growth Companies Safest

bought 200

and

Most Profitable
safest

stock

common

in¬

the most profit¬
commitments
in the

vestments,
able,
are

and

shares of well managed

"growth"

companies. In fact, about the only
left in which to acquire a

way

fortune

in

a

lifetime

is

make

to

investment in a

"growth" com¬
pany (it matters not whether it
is represented by a listed stock
or
is direct proprietorship in a
local industry) and perhaps never
an

sell

Profits From Inactivity
I

March

in the 16 years. $3,737 in
dividends. Similar performances,

The

"growth"

held

in

paid,

ex¬

growing

a

an

shares

the
this

would have been worth $16,600 on
March 1st, 1946 and would have

owned?

ever

wards became International Busi¬

I!

company's

to
in

car,

got a IdLiof good out
Do you know it was the most

pensive

meeting of Ab¬
March, the

attention

or

money.

salary,

time

some

1926, I wanted to
automobile — I needed

an

some

think

I

far

Laboratories last

people
to

so

Opportunities

annual

fact

was

relishes

Jew.

a

is

president called

inherited

tendency to prejudices. Every¬

he

that he prob¬

game

ably would have a paper profit
(thanks to his Aluminum) in the
worst panic you can
imagine.

it.

Patience

shares of General Electric in 1906.

terms

He

dend,
had

not

time

an

company—in

has. risen from 4 to

common

in

but

love

them

understand

and

(in

to 40%.
reason

All

with them, day in

since

out,

ness

to

thinks

a

you

Pigs

stocks.

re¬

conservative investment. The

loan because the

bad

coun¬

Atchison

typical

the

buy

to

seek,
the banker thinks by habit in
^erms of capital conservation and

should

outstandingly

even

for
perfectly sound
review) as Allied

case

The

in

positive

something

mind,

purchase of such

Fansteel which

principal in an in¬
flationary period, or desire for
capital enhancement. Equally im¬
portant, there ought to
be
a
reason for buying each particular

be

his

the

which is up from
119, Conde Nast which
has skyrocketed from 1% to 77%,
Engineers Public Service which
has appreciated from 1V4 to 41%.

of

common

Harbor,
reluctantly have

spectacular

27 V2

stand¬

depreciation

common

Why? Because Computing-Tabulating-Recording, which after¬

reasons

point of trustee funds at least,
there should be a reason for buy¬
ing a common stock instead of a
bond. The reason be higher yield,
a

Pearl

sub-average behavior—but
probably could not have con¬

each

be

the

did.
stocks

ever

you

and

we

cent

bought and

should

bear

trust account purchase

a

Stores which

there

banker

1942

Corn

tenance

compelling,
positive
reason
for
making
every
common
stock
investment.

after

probably

ditioned

,

Fourth,

just

the

of

Procter &

he

investment to follow every
development
closely.. Common

stocks

than

sow's ear, now any more

a

vided

entre¬

ventures, it is neces¬
times during the life

at all

sary

out of

Products, American Can
Gamble, all of which
(at least until recently) have pro¬

it, but in investing in
stocks

common

bottom

market,

buying
get

of hackneyed phrases,
don't make a silk purse

use

but you

in some other way.

conservative

the

the

approved
or

1937 at around 64 must

in

Now

boasted

loan,

sold as
21 %; it

it sold below 28.

not quantitative.
a

has

felt pretty sick about his
judgment only a year later when

liquidity of stocks is qualitative,
Third, in making

period

same

have

exactly the

much

estal where they do not belong. I
hate the

show you a few which have been

a

be

can

high of 63%.

a

high as 52 and as low as
always has been a "good" stock,
but a trust officer who
put it into

but you cannot always get

—

your

it

and

ped¬

a

on

good investments for anyone.
A few years after I moved

in

investment is sure to fluc¬
tuate widely. If the investment is
in a listed common stock with a

market,

10

of

stocks

common

growth stocks of the past 50 years,

stock

good

low

a

the

reason,

of

putting

General Electric, one of the great

day to day and from week

market

present split-up shares in
years it has ranged between

8%

Second, the outlook for any ac¬
tive risk, or the
prospect for any
entrepreneurial venture, changes

wealth in
investments, are

stock

common

as

the

of

profit and incomes than a bond,
there is no object in owning it.

from

low of 101 lk

high of 201.
Pennsylvania Railroad has paid
dividends, in varying amounts,
every year
snce
1848, almost a
lundred years, but in the past
8% years it has sold as low as 15

entrepreneurial

common

pace

a

he

his

paper

make

and

ranged between

aas

last

list

a

taking some
Today, I fear, all people — in¬
capital losses. It was a hopeless
counsellors, brokers, in- 1
job as he had six small losses in
vestors and bankers
seeing the if I remember
correctly, 126 items'
great harvest of

dad,

with exceedingly rapid
technological
progress.
It
has
everything which commands con¬
fidence in stability. Yet the stock

taker of risks.

has

vestment

widows

more

kept

investor in

by

a

—

of

The

is

1920.

public utility system in the world,
is a
soundly financed company
which for three generations has

investments

are

ground.

issue owned, I suppose,

an

orphans,
school
teachers
and
ministers,
trust funds and colleges, than any
other American equity. It repre¬
sents
ownership in the biggest,
and
perhaps the best managed

common

investments

are

sirable

approaching the problem

investments in

like Ameri¬

like clockwork since

iere is

bonds, notes and mort¬

as

handled largely by men who are
essentially from a banking back¬

as

stock which has

a

investments

company

them

Chips" Have

issue

good

a

annum

it
is
essential

any

recall

forgotten.

this

8%

paid dividends in every year since
and distributed $9.00 per

however,

nature

Finally, the customers of your
banks expect to be able to come
to you with all
their financial
in

"Blue

Telephone,

can

of the

and,

of

Fluctuated Widely

in

not

pruaent

I have lived

Even

judging
swept along with

make,

have to be "on your
own" in a field
foreign to your
routine daily experience.

problems,

period

a

the

and

stock commitment.

sold

gence.

working

I

to

and
in instances
where
have been honored with re¬

sponsibility

over

—

in

elementary discourse on
nature of equities. To clear
atmosphere for the points I

trustee
you

1938

of

an

wish

You may be con¬

trustee

a

individual,
an

what has

see

The

he

—

1881,

or

account

for

or

bit shocked to

a

men,

years.

it.

of you, at

one

investments

intelligence
are

certain

own

happened to the prices for a few
"blue chips" since the beginning

ownership
goes
to
absurd
ex¬
tremes, and even those of us who
are
supposed to be of above-

an

least, is
not a sound credit. When you fool
with one you play by ear.
In the
judgment of bonds, according to
at

be

they are high and in many
should be sold. Mass psy¬

cases,

shares often

quality of the loan

one

buy them when they are
cheap
and
should
be
bought.
Everyone
wants
to
buy
them

determines the
the

No

wants to

average

make in

most

of

shares.

or

to

Coming down out of the strato¬
sphere of theory and abstractions
to the field of actual experience,
look at the preformance of a few
of the highest grade listed stocks
in recent years. I think you will

people toward all kinds of equi¬
ties, whether real estate, going

enterprises,

allowed

be

But

world of thought. There He always
investigates before he
danger, ladies and gentle-- invests. He seldom takes

the

trust

be

types of common stocks.

begin with, let me remind
that there is something per¬

verse

is

27, 1946

ent snare,
inat, ot course, was
fortuitous investment.

another

in going too far in applying
man
rule, so far as
common stocks are
concerned, to

to

To

Over-Prudence

highly important from the stand¬
point of any insurance company,
or
from the point of view of a
savings bank, if savings banks un¬
der the "prudent rpan" rule are

contribu¬

a

of

first obstacle any
banker
is
up
against wnen he
tries to judge common stocks is
a
perfectly logical one, and one
which, if he is a good banker, he
is congenitally
unable to over¬
come
completely. He believes in
the

kept within limits. This
I think, in the case of
certain trust funds. It certainly is

to contemporary investment
thought. I shall try, therefore, to
cover
some of the ground I feel
would like to explore.

equities.
In the first place, the value of the
equity, and its soundness, often

to

be

of

is germane,

tion

You

against

will

address

essential in

must

be

helpful and practical, and I hope

Ownership

high degree of liquidity
any fund, the per¬
common
stocks held

a

centage

a

to

positive, not a

a

Danger

Thus,

Fifth, and I harly need to men¬
tion this at a gathering of bankers,

concerning the nature of
in
equities.
You

commitments

bond
Bankers'

buy a stock for
negative reason.

Thursday, June

I

the

Outstanding

Virtue

grant you that most stocks
"made to buy and sell", mean¬

Today he is a millioniare. He has are
a
reputation for being a very
ing that the only way to make
astute investor. Actually, about
money "in the market" is to sell
all he has done during the past
bull markets and buy bear mar¬
40 years to deserve this reputation
has been
to
hold
his
General

Electric.
A client of

mine worked

way
as

an

engineer for the Aluminum Com¬
pany

until he retired

pension
He

ten

owns a

years

on

or

a

$10,000

more

kets; but long and most intimate
experience convinces me that the

Company stock which cost him
the equivalent of about $2 a
pres¬

INVEST

in

is to
"growth
through

stocks

carefully selected
issues
and
keep them

good and bad markets. In

ago.

big-block of Aluminum

to

buy

run,
more
11

the

investor

money

out

the long

always
of

makes

stocks
4an

than
nllt-

Number 4502

163

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

standing virtue in successful in¬
vestment in equities.
I

most

suppose

like

have

to

crowded divorce courts, evidences tion of almdst any loan today. I
of an alarming spread of nervous
remember a
paragraph in the

of you would
tell you what

me

stock to buy Monday morning for

profit

a

Tuesday

by

noon,

and

market

will

end.

however, that

your

offi¬

the

when

I'm sure,

bull

crazy buy¬ Saturday Evening Post years ago,
ing in retail stores, and the ap¬ where it was pointed out that if
unwillingness or inability Leonardo da Vinci had loaned a
(perhaps both) of manufacturers piece of gold about as big as a
to produce really good products at marble
at
6%
interest
com¬
reasonable prices.
pounded semi-annually and if the

parent

such thought in mind
invited me here. They
expecting a highly respect¬

cials had

loan had

no

Inflation

when they
were

able economic

discussion, such

give

would

"caste"

convention

your

the

in

as

financial

journals

magazines which will report
heard about the

and

it. But when you

who

man

dress

scheduled

was

to

ad¬

probably thought
"here is where we get something
right out of the horse's mouth"!
you,

you

don't

I

Now,

know

bull market will end,

will

I

be.

what will

or

will

not

am

that

however,
ways

the

just how unpleasant the

end it, or

end

when

stock

be

assuming,

brokers

profitable

al¬

servants

to their clients.

You

has

the

this

business

could possibly imagine. We

anyone

been

have

recently

grandest

making

the

money,

clients have been making money;
and

profession,

our

after

this

war,

government,

Canadian
other

one

government-^b

to

d

That money/may be paid
but if it is, /it will be in

back,

dollars and pounds

Thi

chasing power.
deteriorated

is

ways

unit

of

dollar is not worth
before

was

bearing

entrepreneurial

ing

or

as

I
we

a

the price of securities
on the price of a dwell¬
of
inflation is
It is a chills and fever

progress

period of starvation and disgrace,

never

has

process,

or

been

the

become

the

among

most

highly respected.
far

So

going

am

gather
the

while

can

I

as

to

concerned, I'm
all the roses I

season

lasts.

Their

is sweeter than

aroma

some

of the

I have

smells

exnerienced

the

in

past. But I can't help remember¬
ing that these roses are growing
thorny bi^hes. I
to get scratched.

on

trying not

am

even.

at least it always has
past. If we are wise,
therefore, we will expect periods
of weeks, or months or perhaps
in

even

years,

may seem to

During those interruptions in the
not
always remember that the long
term trend is toward cheaper dol¬

broad trend, however, we may

When Will the Bull Market End?

My

confidence.

About

difference whether or not the
is cheaper. Russian money
won't be a factor in world affairs

I

can

do is to survey a huge
acreage

familiar

rather

ground

of

some

ruble

though the Soviet may be a

even

building sites
and

try

to

if

on

warn

quicksands
all

are

through,

we

as

and

swamps,

located. After I get
you

with

other

people's

will be able to draw

money,

I,

nor

honest with ourselves

are

curate

high ground —
you where the

neither

are as

we

good

some

ac¬

property lines.

Let's

begin

World

The chills and fever of

inflation

be governed to some

may

with

the

obvious.

often after a
short period
of painful adjust¬
ment, in the past almost always
has followed all large scale wars.
War destroys wealth which must
be replaced.

War stimulates technolog.cal progress for capital to
finance. War creates all kinds of
deficits in the things people need.
From the standpoint of replacing

the wealth that the

destroyed

war

abroad

that the war prevented
from being produced at home, and

exploiting

the

technological

knowledge which it developed,

we

a

trend

ferred demand. That's still

very,

very bullish. And it will be for a

long time. It's too early to
about

eventual

the

worry

aftermath

of

overproduction.

Next,

we

since

war

major
beginning of time

know that every
the

has been immoral, unethical and

dishonest, and has resulted in un¬
leashing the worst, rather than
developing the • best in human
character. After

every war,

when

the martial spirit dies down and
men

and

women

tired,

we

social

morals

are

enter

a

and

emotionally

period
social

are

jointly bad. The backwash of
war on human character is dele¬
terious. We are seeing this al¬
ready, in our national life, as well
as

in

To

our

say

settling and

What

I

have

just

sa;d

covers

strikes, black markets, weak gov¬
ernments, selfish pressure groups
nylon

must

lower

become

yields
yields

accustomed

stocks just

on

lines,

like

Haps-

We have

lived

and

a race

was

track.

great times, great

little stability. Yet

all here

are

business

the

Ferdinand

old

starter's gun at

a

—

of

A Rapidly

to

I

to

as

all engaged in

handling money.

see

can

nothing

accustomed

come

yields. If I

lower

bond

in

coldly logical, how¬
must admit that stocks

I

ever,

to

am

but further

bonds, and I must recognize that
stocks have not gone up as much

or

commodities
much

as

dollar
It is
or

has

have

the

as

appreciated,
value

to

declined.

end

an

this. When I do not have

script

(and

that

is

drowsiness

then

I

know

or

it

a

most

time), I just wait until I
of

scientific

like

see

and
quit.

time

to

terminal facilities have
been cramped by too much paper
work, just as my rhetoric has been
stilted by too much careful phras¬
ing.
Today

progress

been

scientific
—

going

or

eco¬

have been

we

going ahead. It is in spiritual pro¬
gress that we have been
back¬
ward.
Man,
the animal, is no
better than he was in the horse

signs

uneasiness,
is

nomic

the

and

the past 50

of

not

have
in

backward

manu¬

of

progress

We

years.

material

the

absorb

to

men

address

to

condition the hearts and minds of

always hard to know where

how

is

commencement,*

Vermont

the

of

my

and

buggy

days

—

but

ness

not

he

the

used
cause

We

to

1946,

the

p.

such chaos and disaster.

endeavor
We

therefore,

must,

statesmen with money.

be

must do

fused
and

This advertisement

neither

is

an

The

has

"Chronicle"—June 20,

best to serve the con¬

our

who

people

we

frank

limitations while making the

There
who

is

the

is

only

one

not make

does

man

who

type of man
mistakes. He
does any¬

never

thing.

Short Positions

on

Curb to June i5
The

Curb

short

total
traded

stocks

position

the

on

amounted

Exchange

at the
1946,

to

137,183

the

shares

in

198

issues,

reported on June
compares with a total

Exchange

20.

This

short

position on May 15, 1946, of
shares in 233 issues and

200,749

represents
the

decrease

a

There

shares.

previous

was an

of 63,5C-3
increase in

month

of

The report

shows that only five

stock issues out of the total of 863

traded

of

on

the Curb Exchange on

showed

14

5,000 shares

a

short

position

compared
May 15, 1946,

or more,

buy

any

of these securities.

Denman Tire & Rubber Company
50,000 Shares

Convertible Preferred Stock
Par Value $10

share

95,000 Shares

bonds in the
Seventh War Loan drive, as it is

Common Stock

think the
is trying
fight inflation. It may be suc¬

so

tc

easy

to

I

assume.

Par Value $1

Board

Reserve

Federal

Price $8 per

eventually, at least for a
We
might
experience
another 1920-1921 in some form,

cessful

share

while.

tough while it
it may be
will have to squeeze some
be

could

it

lasts.

In

we

other

Copies of the Prospectus may be obtained within any State from
undersigned only by persons to whom the undetsigned may
regularly distribute the Prospectus in. such State.

words,

foolishness out of
the economic and social situation
before we can have our big post¬
war
replacement boom. I don't
know. You don't either. As men
who
deal
with
other
people's
money, and advise them, however,
the present

of

must

we

keep

our

eyes

open.

later, we
could have a little economic up¬
set
one big enough to give us
some sleepless nights and inspire
a
few more gray hairs.
Sometime next year, or

—

Interest Rates Trending

Secularly

I

Co.

Stirling, Morris & Bousman

& Co., Inc.

First Securities Company
Chicago

The State Investment
Envart. Van Camp
J
7

one

of those radicals who

Link, Gorman & Co.

that

am

were

the

interest rates always

of

too high in the

as

a

not

will

money

are

not

as

Hall, Tattersall & Co.
Courts & Co.

Loans

& Co.

off

are

as

of

a

good

deal better

H. G. Bruns &

Co.

McDonald & Co.

McAlister, Smith & Pate, Inc.

much

they think they are
result of lower interest rates.

worse

S. R. Livingstone

Brailsford & Co.

A. M. Kidder & Co.
R. H. Johnson & Co.

Incorporated

time

with

Maxwell, Marshall & Co.

Cohu & Torrey

Incorporator!

Lower

thinks

the

Herrick, Waddell & Co., Inc.
Amott, Baker & Co.

June 21,

1946.

5,607

shares.

overselling

of

in

York

New

close of business on June 14,

offer to sell nor a solicitation of offers to
offering is made only by the Prospectus.

Price $10 per

us,

enunciate our
big¬

clearly

and

to

come

do this if we will be

can

with eight issues on

3356.

5% Cumulative

age

weal, or abused

for such

be
to

an

that can

things

with

blessed

so

busi¬

public official, is
how to handle the affairs of
world, but how to handle
every

man,

June
*Cf.

every

himself and other men in

Our

change.

evolutionary

greatest problem in the next gen¬
eration, as President Schram of
the New York
Stock Exchange
said last week at the University of

have not gone up any more than

as

great period of revolutionary

a

and

of

problem

big

gest contribution we know how to
a
solution
of
their
problems.

Changing World

change

has

quality since they carry amorti¬
over-speculation, sation, and you require amortiza¬




of

ahead. Certainly we are
lower
on bonds — and
if not going back where we were
yields on stocks are to be lower, before World War I, before Frank¬
price-earnings
ratios
must
be lin D.
Roosevelt, before World
higher. It is hard for me to be¬ War II. Nor are we going back
come accustomed to present stock
even as far as Franklin D. Roose¬
yields just as it is for you to be¬ velt. The world is marching on

dustrial bonds. I surmise that men

tor in the whole economy and in
the financial markets.

killed

that

disinvestment in govern¬
been solely the result

this

if

ments

a

relations

House

the

this

of

burg set off World War I and all
that has since happened. The shot

dis¬

least,

this is an un¬
dis-stabilizing fac¬

of

know

you

The

banker, every broker, every

government securi¬

past, and that
again return
when 6% and 7% can be had on
first mortgages, and 5%
or 6%
on
good quality railroad and in¬

international

the

but

assassination

member

therefore, that

assume

by

when
morale

itself,

in

the

past

that

about de¬

would

these banks, and in the
disinvestment in government
securities by the Federal Reserve
Banks usually has been followed
by unpleasant repercussions
in
business and in finance. I doubt

ties

saying anything

more

portant

and

handle.

of

changes,

extent

persistency in the re¬
in
the
government
bond investment account of the
Federal Reserve member banks.

observed
cent

and

a

economic and social,
political revolution. The
day I graduated from Biddeford
High School, Archduke Ferdinand
was shot. That was not very im¬

economic

Federal Reserve Bank policy.
I
would
get a little concerned
about the continuity of an upward
trend in the ^ock
market if I

long period of ac¬
tivity ahead. There is no need of

have

must

a

by

investment in

prosperity,

we

in

in

scientific, social,
political world to

Federal Reserve Policy

Lately there has been a big
Post-War Prosperity

lives

complicated things

more

mechanical,

real one.

very

quickly.

rocky and barren soil,

very

ways,

any

I'll show you some fine rich
loam,
Some

Russia

won't make

it

the

pleasant¬
all

say

mends

is one of despair rather than

ness

of

the present

not

the

general approach
to
problem of trying to time
of

her

cheaper

Unless

rubles.

cheaper

did

I

notice

You

francs.

duration

in whcih deflation
have the upper hand.

lars, cheaper pounds and

But

age.

our

Higher

pair of shoes.

a

The

always

money

Price Earnings Ratios Will Be

it

has

That

many

earned

hectic

a

all

lived

period

we

The

much

as

war.

so

be

We live in

that

lots
the

and even

lost.

on

well as

as

the

interest,

for

can

is

in the

convention.

banker's

in America,

world

the

6%

practiced

was

of

perience it every time we buy a
meal, purchase clothing, or come
a

all

.

have

a

af/er the end of a
now/we are talking
inflation, and we ex¬

lot about

in

gold

not

could

only if the money lent assumes
entrepreneurial risks — and part

al¬

currency

it

regularly serviced

borrower

off the debt.

years

years

Right

war.

evidence of

pronounced

more

first few

pf smaller pur¬

been

the

find

pay

as

and every
o r r o w e

date,

now

was

money.

long

a

every

to

dishonestly financed. Our govern¬
ment, the British government, the

to

that

know

been

Like

a

I want to close on a very prac¬

tical note.

mental disorders,

and

3503

Clayton Securities Corp.
Edward D. Jones & Co.

THE COMMERCIAL & FINANCIAL CHRONICLE

3S04

shows

for

each

its

bank

twelve

ratio

Thursday, June 27, 1946
Manufacturers

14.6.

of

also the six¬ Trust's current ratio of 8.1 also is
with which to higher than its twelve year aver¬
compare the current ratios. It will age, but Manufacturers' ra.io is
be
observed
that
currently the one of the lowest in the group
average market-earnings ratio of whereas First National's ratio is
the sixteen banks is about 81% of the highest.
Lowest ratio is the
average ratio,
teen' bank average,

year

Bank and Insurance Stocks
By

In relation
at

Bank Stocks

—

their

York City bank stocks are selling
Based on studies in which the writer

to earnings, New

historically low level.

an

DEUSENi

VAN

A.

E.

This Week

twelve years ago, .he market-earnings ratios of
prominent Wall Street banks averaged approximately 18.5 over the
27 .year period
1907-1933.
During the first sixteen years of this
period the average ratio was approximately 15.5, buc during the last
eleven years it was approximately ^
ences which mark the two periods,
'23.3. Many of the data upon which
direct
statistical
comparison
of
this
study was based were ob¬
engaged

was

tained

excellent

that

bank

pub¬

operations

is

possible.

not

those

mergers

pre-1929

York

and other changes

banking

Federal

been

and

enacted

tuted.

ferred

institutions;

interest

of

new

to

market-

Furthermore,

a

above,

of

insti¬

.he

1907-1922

greater

nual

daily

average

ratios

of

been

bank

quota.ions
made

orderly,
prices have

more

of

stockholders are
kept better informed by manage¬
available,

ment

and

12

year

followed

Manhattan, closely

by Manufacturers Trust,

readily

ihese

of

(Continued from page 3471)
to securities which are
registered by their issuers on se¬

instrument is with¬
held. The stockholder is provided

curities

with

respect

and

ratio

47%

the

stocks,

market

based

current

nancial

ports

an¬

earnings

-

present-day
the

on

mean

with

investor

the

reports

position.

are

basis

holiday," the

sixteen

sion

file

Commis¬

their

on

Since these

fi¬
re¬

public information, the
can
buy or sell on the

ratio

these

in

securities

effective

more

also

voice

enjoys

in

the

a

man¬

agement of his corporation. When
his

is

proxy

solicited

he

is

not

the

under¬

ihe years 1935 to 1940.

directors,

many

differ-

1

total

of

a

12.1

more,

16.6

1936-

1938_

year

items

position, and further¬
the market takes cognizance

Table

2

presents

which shows

13.3

14.4

1940-

one

three

of them.

19.5

1939_

any

bank's

18.2

1937_

in

these

the net improvement in

measures

1935_

that

reason

The

the

tabulation

a

position

13.3

1941_

11.7

prices

of

1942_

10.8

lished

in

used

June

21,

The

the asked

are

1946,

as

pub¬

his

wishes

curities

separately

ing; and he is also given a reason¬
opportunity to present his

able

proposals and

other

the

views

to

the

security holders. Another of

basic

protections

enjoyed

by

the investor in such registered se¬
curities is the safeguard against

information

at,

acts

tions

the

manpower,

Commission has
out the statutory

respect to unregis¬

tered securities.

It has discovered,

however, that in this
matters

correction

in other

as

is

not

ef¬

as

prevention; that security

as

much

are

when

porate insiders

adequately

more

issuers

and

under

are

cor¬

obli¬

an

gation to supply information.
The
such

importance

information

of

requiring
considerably

is

enhanced by current and prospec¬
tive
condi.ions
in
the
business
world. The

Exchange Act. The

proposed here

in which

manner

10.2

1944_

some

The proposed amendment would
a
relatively small number
companies, but the affected
group is one of considerable eco¬

of

nomic

importance.

10.6

$3,000,000 and having
security holders. Of these,
1,600 are registered and are

300

some

filing

and

insider

the

the

remaining

which

of

their

edge during the
what

years

to

private
war

be

may

knowl¬

illus¬

years

expected

in

the

of

Table

2

2

forbidden

are
Net

Bank

of

Central

Chase

Earnings

New

10.0

in

442

13.3

17.8

49

9.3

14.3

insiders engage must be promptly

lating

extended

such

time

9.6

15.0

reported

12.5

15.8

once.

&

of

These protective provisions are
con ained in sections
12, 13, 14 and
16 of the Securities Exchange Act

which

Trust

4.40

46 V2

11.1

21V2

5.1

10.9

62

11.4

12.2

122.92

1,825

14.8

14.6

26.78

336

12.5

15.0

12.8

15.8

Trust

^L-

1.50

Trust

19 y4

7,70

62 y4

8.1

7.2

4.12

46%

11.3

12.6

Trust

9.86

National

107

4.50

10.9

805

11.0

13.9

18.2

10.9

Average

in

and

parallel

Public

Utility

Act and the

Act. As

of these provisions,

erage

which

NEW JERSEY

is not

SECURITIES

1945

these

features.

is

securities

J. S.

Members New York Stock
Exchange

Established

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
Teletype—NY

18 Clinton

1-1248-49

<L. A. Gibbs, Manager Trading

Rippel & Co.
1891

St., Newark 2, N. J.

MArket 3-3430

Department)

N. Y. Phone—REctor 2-4383

best

of

surveys
se¬

information

inadequate and
Financial

issuers of such

bare and uninform-

ative; they lack much of the in¬
formation needed for

an

informed

the

upon

powers

soliciting

of at¬

persons,

the information to guide the

of INDIA, LIMITED
Bankers

GEYEIt k GO.
67

Head

BS-297

231

WHITEHALL 3-0782
NY"

-




FRANKLIN 7535

CG- 10J"
YORK,

PHILADELPHIA, CLEVELAND, LOS
HARTFORD, Enterprise

6011

in

BOSTON^ CHICAGO,

ANGELES

PORTLAND, Enterprise 7008

PROVIDENCE, Enterprise 7008

issues

we pro¬

of

sec¬

security holders. The leg¬
of the Securities
Ac*

discloses

that

the

Office:

26,

is

—the

objective of providing equal
protection to all inves.ors, whether
on
the
organized exchanges or
the

over

counter.

The

principal
factor which prevented Congress
from carrying out this information
at ihat time was its
uncertainty
to the nature and

the

such

scope of the
unregistered securities

of

conditions

securities

under

which

traded.

were

The

feasibility of extending ihe pro¬
tective disclosure provisions to se¬
curities

which

not

were

the exchanges

traded

was not

then

In India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar

Subscribed Capital

Paid-Up Capital
Reserve
The

Fund

£4,000,000
£2,000,000
£2,200,000

Bank

conducts
every
description
banking and exchange business

Trusteeships and Executorships
also undertaken

1934, however, the Con¬
has from time to time ex¬

tended the

and

the

been

registration provisions,

attendant

to

provisions

proxies

to

and

important

of

re¬

insiders'

classes

of

originally

subject to those provisions.

Thus, with the enac.ment of the
Public Utility Holding
Company
Act of 1935, many
holding com¬
pany
sues

and

operating

company

is¬

became subject to these safe¬

guards.

certified

And

in

1936,

with

the

amendment of ihe Securities

Ex¬

change Act,

a

requirement for

pe¬

fi¬
by

The informa¬
for

tion that would be required is,

the

most

already

part,

the

on

books of all these companies;

the

only question is whether it shall
be made available to their security
holders

and

as

for

the

the

insider

investing public.

ihe

And

rules and
provisions,

proxy

trading

,

admin¬
of the
companies and persons affec.ed.
The
proposed
amendment, it
should be noted, would put an
end to any tendency on tne part
of corporate management to select
vhat market for its security hold¬
these

require little

istrative effort

no

or

the part

on

which is available with

fewest

management.

upon

Any tendency on the part of man¬
agement to deny security holders
the

facili.ies of

curities

organized se¬

an

exchange in order to

bili ies would disappear.

changes

and

over

-

avoid

responsi-

the attendant disclosure

the

The ex¬
-

counter

markets would then be on a

truly

competitive basis with the gov¬
erning
consideration
being the
service which each can supply the
investor.

investors

That

would

benefit from,such increased com¬

petition
The

have

scarcely be questioned.
exchanges have

can

New

York

gone

in support

on

of

able to that

Since
gress

securities which had not

Branches

already have their

statements

restrictions

trading,

Bishopsgate,

class

nancial

ers

this time

at

simply a
means of attaining Congress'
orig¬
inal objective as declared in 1934

lating

s- ^aSalte Street

ji-2.875

NEW

the Government

London, E. C.
CHICAGO 4

Wall Street

PRIVATE WIRE SYSTEM CONNECTING:

to

Kenya Colony and Uganda

INCORPORATED

HUBBARD 06S0

more

established.

NATIONAL BANK

this

accounting
burdens.
the companies in

making

upon

BANK and INSURANCE STOCKS

NEW YORK 5

or

history

Exchange

as

in¬

most

85% .of

proposal which the Commission is

and

usually

torney conferring blanket author¬

WHOLESALE MARKETS IN

Office Square

islative

Proxies

are

one

tions
12, 13, 14 and 16 of the
Securities Exchange Act be made

issuers

and

BOSTON 9

have

widely held. Specifically,
pose that the provisions

appraisal of ihe issuer's securities.

ity

Post

large unregistered corporations

least 300

protective

misleading.
of the

are

securities

security

unregistered

basis

at

statements

Laird, Bissell & Meeds

vital

the

cover

be

national

a

a

commonly bought and

the

on

which

these

are

sometimes

Request

on

Commission

that

curities
sold

listed

to

re¬

applicable to securities of unreg¬
istered
corporations
having
at
least $3,000,000 in assets and at

cov¬

exchange, unless it hap¬

lacks

show

Insurance Stocks

the

a registered public util¬
investment company secur¬

or

ity,

of

to be

pens

ity

Casualty

provisions

13.5

Earnings Comparison

on

at

Holding

result of the limited

a

securities

Circular

public

Company
Investment Company

12.5

9.7

43%

57.93

Fire &

made

12.8

4.22

5.43

&

is

and

ai

proposes

that the safeguards
registered securities

to

427/a

Trust

10

this

112'/2

City

Bell

which

Commission

3.59

Guaranty Trust
Irving Trust

York

The

trading

any

in

11.67

Bank

Manufacturers

Moreover,

in

comply

public accountants.

1934-1945

33.31

National

120

recur again
again in the files of the Com¬

mission.

5.28

Bank

First

S.

own cor¬

patterns of fraud

and

Year Average

these securities

could

ports

quirements without assuming any

to

porations.

fre¬

1,000 com¬

to buy up pub¬
unregistered securities
depressed prices. This and simi¬

8.0

Exchange

U.

equity securities of their

the

to

advantage

Earnings

York

Corn

New

short

have

enabled

The

panies which do not file such re¬
stances with the Commission's re¬

32

Trust

Continental

Public

sell

having
exploit

6-21-1946

National

National

Such insiders

to

been

$4.00

Hanover

Chemical

Asked Price

Ratio: 12

information

quently

Per Share

Manhattan

Bankers

Ratio: Market

Insiders

come.

their

in

those required by

Commission.

by the corporation.

Table

column

1945 Total
Bank—

comparable

are

basic aspects to

Some

last

the

500

some

vantage
trates

significant

The

are

1,490,

corporate insiders have taken ad¬

lar

13.5

average

trading provisions of
by us. Of

already filing with other Gov¬
ernment
agencies public reports

at

1945,

Commis¬

are

licly-held

for

the

administered

Acts

porate insiders in the equity issues
of the registrant may be recovered

earnings figures

net

with

reports

sion, and most of these are also
subject to the proxy solicitation

including net

the

total

to

of

assets
over

their

and

According

estimates, there are some 3,090
companies, excluding banks, with

our

Short-term trading profits by cor¬

10.7

1945_

sale-

degree of public distribution.

advance

"Times,"

meas¬

logical

affect

trading abuses by "corporate in¬
siders"—that is, by officers, direc¬
tors
and
principal Stockholders.

the New York

the

which would

step

security profits and net recoveries.

1943_

is

of substantial size the securities of
which have achieved a significant

manipulate
Wi.hin the limits of its

practices.

sec¬

guard investors in all corporations

those which

are

provisions

12, 13, 14 and 16 of the Se¬

unreg¬

applicable to

istered securities

protective

se¬

outlaw fraudulent and

matters which

expected to arise at the meet¬

are

own

current

of each of the sixteen banks.
market prices

indicate

to

similar to those contained in

ultimate

mandate with

with respect to all

jected

way

only provisions of the

persons

to

More¬

no

his expense.

protected

been done for

of the

names

ure

ligent exercise of his voting rights;
he must be given an
opportunity

the

This has

been

the

Again,
Company

curities

their inside

fective

have

wag

was

izing

a

solicit¬

statements

in connection with

registration of large issues there-

knowing whether and to what
extent corporate insiders are util¬

ing

to the

at

of

ing

of

financial

adopted in 1940, another
important group of issues was sub¬

not disclosed.

are

the stockholder has

over,

holders

sources

the

even

nominees

sought toN carry

or

riodic

laid down

Act

information necessary to an intel¬

Ratio

of

lowest

six men
banks of 10.2, since then the
ratio
has been creeping upward
but it
has some distance to go before
it
reaches the ratios established
in

in connection with the election of

missions's proxy rules require that
the security holder be given the

1934_

Bank

the

the

times, when solicited for his proxy

that

information

little

so

faced with the alternatives of giv¬

blank check

execution

the

in

proxy

con¬

all

Year

year

had

for

af.er offered to the public.
when
the
Investment

of

something other than
"tips" and "trends." The investor

holder

security
of

foregoing the
right to vote altogether. The Com-

ihe
Table

12

1943

year

SEC Seeks More Control Over Unlisted Securities

coveries.

more

view

"bank

1933

from

standable basis.
In

its

& Trust;

of Continental Bank

5.1

next is Bank of

sidered, i.e.: net operating profits,
net security profits and net re¬

banks, and earnings today
reported on a relatively uni¬

form

is

ratio, 70%

high and low each
year, are shown in Table 1.
During this period, net earnings

of the
ore

This

10.9.
year

of ihe market

the affairs and operations

on

at

Turning to the period following
the

developed, the bank stock market
become

currently

is

of the 1922-1933 ratio.

public interest in bank stocks has
has

early study re¬

low figure of
only 59% of the 27

govern¬

been

have

to

the

the

have

laws

state

and

controls

mental

than

securities

is

average

earnings ratio of

years,

have been effected among leading
New

higher

considered in

it

the

teen

new

slightly

is

a group of six¬
leading
New
York
City
banks, comparable to the group

that

no.e

1928, entitled

*'26 Year Record of N. Y. Banks."

many

First

average.

exchanges, and with re¬
spect to registered public utility
holding companies and subsidi¬
aries
and
registered investment
trusts.
Corporations issuing such

Nevertheless,

the old firm of Noble

& Corwin, issued in

Since

year

The

average

some

from

lication by

twelve

N'a.ional's current ratio of 14;8

which holds the low 12 year
aver*
age.

past

record in the

program com pa r*'

a

proposed here.

Moreover, the benefits of requiring the registration of all sub¬
stantial issuers with

publicly-held

securities would not be

limited to

investors and the exchanges.
would

inure

dealer
was

to

whose
serve

customers.
end

to

the

dealers
markets

the

This

to

the

and
to

It

dealers

of his

would
ihe part of

on

over-the-countei

for
and
would afford brokeis
the tools with which
choose

their customers
hunches.

interests

proposal

necessity
in

They

broker or
principal concern
every

on

select securities

securities

half-facts

on

a

truly m-

Number 4502

Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

formed basis.
It should also be
noted that one consequence of the

proposed amendment may be a
decrease in private placements. To
the extent that companies reluc¬
tant to yield information to in¬

"As

the

to

advantages

the

to

"(A) Any issuer which has less

over-the-counter dealer, one con¬

than $3,000,000

in assets;
"(B) Any issuer all the securi¬

of \he proposed amend¬
ment, it should be noted, may be
a
decrease in private placements.
sequence

To the

ties of which

rectly

extent that companies re¬

have resorted to pri¬ luctant 10 yield information to in¬
vestors may have reported to pri¬
vate financing to supply their new
vate financing to supply their new
capital needs, thereby avoiding
public offerings of new securities capital needs, thereby avoiding
and the attendant duty of regis¬ public offerings of new securities
and the attendant duty of regis¬
tration, the amendment with its
uniform registration requirements tration, the amendment with its
would redound to the benefit of uniform registration requirements
securities dealers, for there would would redound to the benefit of
.he
securities
dealer, for there
be no incentive to avoiding public
offerings
closure

public offerings

on account of the dis¬
provisions of the Securi¬
ties Act of 1933.

what is proposed is
a
moderate and overdue exten¬
sion of provisions which are at
the heart of the Securities
Ex¬
change Act and which are basic
to the Public Utility Holding Com¬
In

essence,

Act and the Investment Com¬

pany

Act—provisions

pany

which

are

informational, which
have operated smoothly and suc¬
cessfully, and with which there
can be no quarrel in principle.
It
is an extension which is badly
needed and easily effected.
The

essentially

accompanying report, which sets
out in more detail the proposed
amendment and the facts relating

it, is earnestly recommended to
the consideration of the Congress.
to

The

disclosure

1946, Chairman Purcell and Com¬
missioners

Healy, Pike, McConnaughey and Caffrey participat¬
ing. The time consumed in re¬

report in accordance
with the Commission's instructions

the

vising

editorial

for

and

other

changes

the mechanical process of

and in

duplication has prevented a more
expeditious transmission to the
By direction of the Commission:
GANSON PURCELL,
Chairman.

of the

or

be

acting in the dark. At present,
dealing in securities which
not

registered with the Com¬

report

the

by

following

cussion of its effects

the

on

dis¬

over-

cer¬

his

of

tions, which

investiga¬

own

expensive, timeconsuming, and often inadequate.

The

are

dealer,

like

sometimes

the

purchases

worthless

investor,
relatively

securities.

This

may

happen, for example, in the course
of large distributions of securities
non-controlling
which

stockholders,
registration provi¬

the

sions of the Securities Act of 1933
not

are

iq these
to

ness

a

willing¬
se¬

though reliable in¬

even

formation

is

lacking upon which
judgment as to investment

valid

merit

makes for

cases

accept large blocks of

curities

a

The competi¬

applicable.

dealers among themselves

tion of

be

may

based.

The

avail¬

that added impetus would be

exchange trading

that

a

company

given
the fact

by

desiring to list its
exchange would

Sec. 2.

1934,
(a)

shall not apply

issuer,

any

tion,

or

in respect

security,
which

person

transac¬

the

Com¬

or

as

necessary
tion

of

such

upon

may

terms

or

investors,

to

appear

appropriate

or

and

be

in

for the

the

protec¬

not compre¬

as

hended within the purposes of this
subsection. The Commission may
so

exempt any issuer, whether or
it
is
engaged in interstate

not

commerce

tially

substan¬

its

securities

single State.

a

foreign

held

are

In respect

issuers, considerations

relevant to

exemption

the

the

granting

subsection

fifth sentences

ihe

following

and

suers,

the

the offices of the Commission, or

extend unlisted

section

tunity

shall

from

filings with the Commission,
make it possible to weed

to

be heard

if

the

the

bad

and

to

recognize the

To a considerable extent,
opportunities to trade upon
information

would

be

cur¬

However, there would be
of

advantages

well-ordered

trading

and

in

a

stable

more

appear

substantial in¬

a

is¬

located

14

of

any

investors

United

The

provisions

this title

so

finds

or

or

any

security

protection

of

amending

By

sentence

of

the

"On

lows:

of

prospect of happier and

more per¬

relationships with satisfied
-

•

of

Text

Amendment

Proposed

The text of the proposed amend¬

ment,

contained

as

mission's

in

Com¬

the

follows:

report

this

of

title

subsection

(b)

fourth

any

of

made

by

in

respect of

shall

related

phases

of

the

should

be

ad¬

dressed

to

to

require.

Furthermore, adoption of

the amendment may well

increase

an

listed

un¬

At
the policy of the Act is

trading

present

that

extent of

the

in

result in

on

unlisted

exchanges.

privileges

trading

as

injunctions
from

(1) Every issuer which is
engaged in interstate commerce or
business

which

affecting

are

the mails

shall not be extended to securities
which

strumentality

not

subject to protective

interstate

the securities
regularly traded by
or

commerce,

of

are

would

any
or

broker

or

any

of

means

or

interstate

of

that

any

in

on

applicable

behalf of

in

investors

or

the

of

case

listed

exist

at

securities; and

as a general blat¬
ter the Commission has not deemed

it

advisable

to

exemptions
requirement, al¬
though it has statutory power to
from

do

this

so

grant

broad

in

appropriate cases.

The

proposed amendment would auto¬

matically create such

an

equiva¬

lence of duties, and make unlisted

trading

potentially available
Wherever adequate public trading

activity

and

exist

the

in

change

and

public distribution
vicinity of the ex¬
unlisted trading
is

otherwise

in the public interest.
It should be
noted, however, that
by
the
terms
of
the
proposed

amendment the company involved
Would
not

be

given

an

controlling voice

influential if
on

the ques¬

tion whether its securities shall be

admitted

to

unlisted

trading

such cases.




in

Due

Issue

of

January,

Due

1927,

Fund Gold Bonds

April 1, 1946

Fund Gold Bonds
1947

lf>,

January

Guaranteed Twenty-Year 6% Sinking Fund
of

Issue

Guaranteed Twenty-Year
Issue

of

Duo

1927,

August,

Gold Bonds

1947

1,

August

6% Sinking bund Gold Bonds

April, 192)1,

1948

Due April 15,

Bank of Colombia
(Banco

de

Colombia)

Twenty-Year 7% Sinking Fund Gold
Dated

April

1,

1927, Due April

Twenty-Year V/c Sinking Fund Gold
l)u!<

April

1,

192)5, Due April

Bonds of 1921

1, 1947

Bonds of 1928

1, 1948

Mortgage Bank of Colombia
Hipotecario

(Banco

Colombia)

tie

Twenty-Year 7% Sinking Fund Gold Bonds
November

Dated

1,

1926,

Due

November

1,

Twenty-Year 7(/o Sinking Fund Gold Bonds
Dated

February

1,

1927, Due

of 1926

1946

of 1927

February 1, 1947

Twenty-Year 6r/v Sinking Fund Gold Bonds of
Dated

Dauber

1927,

1,

Due

October

1,

1927

1947

Mortgage Bank of Bogota
Hipotecario dc Bogota)

(Banco

Twenty-Year 7% Sinking Fund Gold Bonds

The rules and regulations
shall

issuer may adopt

in

this

reporting

in¬

Lsuc

May

1, 1947

«>f

Ociober,

1927,

Due

October

1, 1947

and

Convertible Certificates for 3% External

subsection information, documents

reports filed with the

May, 1927, Due

com¬

of

requirements

of

Twenty-Year 7% Sinking Fund Gold Bonds

provide

of the

Sinking Fund Dollar Bonds

Republic of Colombia, Due Ociober 1, 1970

Com¬

curity registered pursuant to sub¬

to

not

registered

subsection
and

information

documents

ports as may be required pursuant
to section 13 of this title in re¬
spect of

security

a

Whether

not

or

so
a

registered.
registration

statement has been filed pursuant
to

this

of

sections

subsection, the provisions

apply
effect

of any

14 and

16 of this title

"(6)
main

(b).

NOTICE OF EXTENSION

The time within which the

This

subsection

shall

re¬

applicable in respect of any

security registered hereunder un¬
the Commission, upon its own

til

motion
such

or

an

upon

issuer,

the application of
by order

cancels

such

registration. The Commission
shall enter such an order, subject
to

such

terms

and

conditions

it may deem necessary to

as

impose

protection of investors, if
it finds, after appropriate notice

and opportunity for

hearing, that

by reason of change of

circum¬

stances since the date of

registra¬

such issuer were registered

pursuant to subsection (b).

tion

or

of any

'less than

security issued by:

October 1,1970, may he

accepted

hereby extended from July 1, 1946 to

.

due October 1, 1970 in
has also been

multiples of $500 principal amount

extended from January 1, 1947 to January

1, 1949.

to

Copies of the Offer may be obtained upon application
Exchange Agent, The National City Bank of New

the

York, Corporate Trust
New

York

Department, 20 Exchange Place,

15, N. Y.

AGRICULTURAL MORTGAGE BANK
(Banco Agi'icola

"(7)

$3,000,000 in assets' and

the appurtenant cou¬

3% External Sinking

July 1, 1948.
The period for exchange of Convertible Certificates for
3% External Sinking Fund Dollar Bonds of the Republic
is

otherwise the issuer is not

section shall not apply in respect

"(2) The provisions of this sub¬

for Republic of Colombia,

subject to this subsection.

The Commission, for the
purposes of this title, may by rules
and regulations define the phrases

Offer, dated June 25, 1942,

exchange the above Bonds and

Fund Dollar Bonds, due

for the

force

same

to

pons

if all the securities

with the
as

section

as

be required in respect of an

application to register a security
pursuant to subsection (b), and
such supplementary and periodic
information, documents and re¬

and

1926,

Guaranteed Twenty-Year 7% Sinking

required of an issuer having a se¬

shall

of

Issue

or

pur¬

may

Offer)

an

Hipotecario)

Agricola

Guaranteed Twenty-Year 7% Sinking

which
law

(b), a regis¬
tration statement containing such

securities

suant

publishing

shall file

merce,

its

the

Agricultural Mortgage Bank

modify

pliance with the registration and

and

with

Colombian Mortgage Bank Bonds

or

use

com¬

writer, his

To the Holders of

with the Com¬ mission under any statute and
substantially equivalent to that
substantially equivalent to those mission, with respect to each of
provisions

25

New York 8, N. Y.

hi£ views and opinions.

(This Announcement is not

any

penalty

remedies

Commission

an

of

market

a

Issue

the

or

dealer

or

creates

to exempt

or

to aKer

or

otherwise

"(5)
of

Commercial

Chronicle,

connection

of

in equity.

"(g)

in

or

rights

Editor,

Financial

and

or

of any rules or regulations

thereunder,
any

which

for

makes

respect to violations of this
or

on

who

the

prevent

amended,
is
hereby
amended by adding thereio a new
subsection (g) reading as follows:
1934,

with

as

tion,

invali¬

not

tervening reports, plus such other
information as the exchange might

gress

fore¬

SEC and

identity will not be revealed in

any

title

simply

so

filing with the exchange its
registration statements and i.s in¬

the

going proposal of the

action, but the

proceedings,

person

"Chronicle"
on

Letters

com¬

assembeld, That Section 12
of the Securities Exchange Act of

rule be able to do

a

Representatives

of

The

comments

any

fewer

by

as

an

ap¬

subject.

prohibition provided by this title

on

become

after

fol¬

held

are

of the
United States of America in Con¬

securities

Note:

Ed.

invites

paragraph

apply to

Failure to

construed

granting

for

or

proval.

second

read

security

provisions of this paragraph shall
be

shall

At the request of the

respect of which
is

date any corporate

not

Act

months

six

or

appro¬

extended pursuant to this subsec¬

security not registered pursuant to

proper

Be it enacted by the Senate and
House

14

This

3.

exchange have been continued

ply with the provisions of sec.ion

the

Sec.

effective

Park Place,

a proxy or con¬

indirectly

or

or

investors."

unlisted trading privileges on any

not

the securities in

directly

necessary

application of the

the

any

of detriment

reason

notwith¬

the

of such subsection to

issuer

by

or

issuer, such termination

the protection of

to the issuer which may be made."

authorization in respect of

solicitation

ihe

standing any showing of detriment
(b)

inadequate public
or of the charac¬
trading therein on said ex¬

priate in the public interest

continuation

inves.ors

of

suspension is

cation is necessary or appropriate
in the public interest or for the

registered pur¬
to subsection (b) where all

suant

to

unlisted

of

any

than 300 persons.

with

the

lhat

no¬

vicinity of said exchange, or

change,

op¬

approved unless the Commis¬
extension

appropriate

reason

ter of

trading
privileges pursuant to such appli¬
or

after

opportunity for hearing,

trading activity

and

and

appears

and

by

the application, it shall not

poses

trading

the

oppor¬

party

a

mon.hs,
privileges

that by reason of inadequate pub¬
lic dis.ribution of such security in

such application; and,

on

issuer

of section

shall not

solicitation of

sent

the

Spates

better

and

as

an

a

12

security if the Commis¬

finds,

tice

suspend for

which

to

extent

market, with the element of risk

appraised

given

(Banco

"(4)

sion

trading privileges

be

such

for

pursuant ;o clause (3) of this sub¬

State.

derived

the

of the

or

exceeding

not

unlisted

en¬

terest in the securities of such

within

such

"The issuer of any security which
is the subject of an application to

this

of

susceptible of

there may exist

among

the

sentence:

new

terminate,

period

paragraph of that subsec¬

forcement with respect to such is¬

ability of pertinent information in
sources

between

unlisted

such

of such

provisions

are

hereby

order

inserting

of

trading privileges, or on its own
motion, the Commission shall by

include the extent

may

which

to

affecting

if

commerce,

all

within
of

in business

or

interstate

(f) of section

is

suspension

or

follows:

and

second

having a bona-fide inter¬
question of termination

person

Exchange Act

amended,

as
as

By

sion

of

Subsection

amended

be

"(3) The provisions of this sub¬
section

suers

advantages and disadvantages.

noted

or

public interest

basis

customers."

As to the latter, it may be
to

private shareholder
individual.
any

the

"For the over-the-counter dealer

the amendment would involve

of

agencies,
the
dealer
proceeds
largely upon guesswork, or upon

manent

the-counter dealer:

benefit

conditions

the

of

which

the

tionally

tailed.

Over-Counter Dealer

on

to

public files of o.her governmental

inside

Representatives.

of the

of

earnings

mission may by rules and regula¬
tions
exempt,
either
uncondi¬

the

Senate,

par*

no

mission and concerning which in¬
formation is not available in the

good.

The SEC concludes the body

tain

net

dealer

when
are

and

and not for pecuniary

inures

"Moreover, the broker

out

The Speaker of the House

the

Se¬

would

The President Pro Tempore

Effect

the

organized

for such security, or of any other

by
any

est in the

12 of the Securities

tion

issuer

profit, and

through secondary

Congress.

of

of

a

exclusively
for
religious, educational, ben¬
evolent, fraternal, chari¬
table, or reformatory pur¬

interested in trading securities for
his own account would no longer

to

Commission on April 30,

provisions

is

indirectly
persons,' and

or

300

portion thereof."

fourth

which

operated

pose

than

of

bank;

"(E) Any

directly

exempted

are

securities;
"(D) Any
issuer

curities Act of 1933.

legislative proposal and the
by
accompanying report were adopted
by the

ties of which

account of the

on

by

"(C) Any issuer all the securi¬

incentive to avoiding

no

indirectly

or

'held
fewer

di¬

fewer than 300 persons;

vestors may

would be

held

are

3505

By
Dated, June 26, 1946.

Hipotecario)

Francisco Villaveces Lopez
(Gerente)

THE COMMERCIAL & FINANCIAL CHRONICLE

3506

resale

Laboi Union Stains and

I

(Continued from page 3473)
framework

the

of

.

Constitu¬

our

development of the

tion

dustries affected with a public in¬

essential

certain

stand

that

out

with

a

change from the status of
business

vate

from

management crises that have charterized
the
economy
since V-J

have

and

regulation

i.s

:

beyond ihe realm of property
rights is clearly possible under

I

one

interest

come

Mr. Justice Roberts in the Neb¬

dling them is pursued.
I

emphasize that the

must

clusions

reached

wishful

thinking

future

involve

not

but

due

effect

renders a court functus
officio.
With the wisdom of
the
policy adopted, with the
adequacy or practicability of ihe

only if all parties concerned real¬

.

responsibilities

ize and accept the

inherent in their relation to each

Failing this, our capitalist
danger of radical alter¬
ation.
This paper will describe
how the growth of the labor move¬
ment has made of it a pursuit
other.

law

order is in

and,
orbit

of

control.

social

is

of

sistent

From

Their significance

in

stances
no

-

first

management

place, there is the

is

clear

its

by

There

court.

second

velopment

feature

of

the

of

i.e.,

that

social

control

industrial

to

rights used to produce

Government

render

regulation.
In
the language of the cases, the
owner, by devoting his business
to
the
public
use,
in effect
grants the public an interest in
thai use, and subjects himself
to the public regulation to the
extent of that interest, although
the property continues to belong

in

.

.

.

control

service.

of

applies

control,
property
good

a

Actually the

to attach with

or

ap¬

public in¬

a

terest

only property rights in

terial

instruments

Mr.

Justice

ma¬

production.
made

this

German Alliance In¬

Co.

surance

of

McKenna

clear in the

when he said:

case

The

complainant explicitly so
contends, urging that the test
applies excludes the idea that

accord¬

Co.

the
a

power

Chief Justice

Packing

to

of

plication of the public utility con¬
cept involves far more than the

and to be

protection

Wolff

it

v.

there

Court of Industrial Relations of

be

can

public

a

interest

which gives the power of regu¬
lation as distinct from a public

Kansas, 262 U. S. 522-544, June
11, 1923).

which, necessarily, it is con¬
tended, can only apply to prop¬
erty (italics mine), not to per¬
use

This

principle was further ex¬
tended
by Mr. Justice
Roberts
(Nebbia v. New York, 291 U. S.
502-559, March 5, 1934):
if

...

shall
know
So

in

a

public interest
be
regulated,
regulation will

far

due

embarks in

one

which

as

the

is

process

the absence

sonal contracts.

think, has no basis in prin¬
ciple (Noble S.ate Bank v. Has¬

business

he

kell, 219 U. S. 104),

.

concerned,

.

enforce

one

fashion

mined

its

case

of Nebbia

even

to limit

is

will

The

an

New York

public in¬

principle

was

"that when prop¬
affected with a public
.

it

.

.

to

ceases

be

juris

Packing

Co.

case.

(an economic calling)

ness

is

found

in

a

busi¬

can go.

the

Wolff Packing
Co. case, where the Court held: In

nearly

included

all

under

the

businesses

the

third

head

above

(i.e., those which though
at
their inception
may be fairly said to have risen
to be such), the
thing which
not

public

the public interest

gave

was

indispensable nature of the
vice

and

the

exorbitant

ihe
ser¬

charge

and

arbitrary control to which
the public might be
subjected
\yithout regulation.

of

ture" of

decides

that

its

is

within

the

the

leads, therefore, to

The

the

tial service and
Munn.

trol.

it has

control

bearing
talism

upon

arising

out

of

This

feature

of

behind it."

the

It

to

.

interest

an

is

use, and must submit
controlled by the public

good."

common

.

.

.

The

the

for the

case

protect

of

a

the

public

some

sort.

necessity,

the

Supreme Court has been nebulous.
It has declared the business of fire

insurance

it

is

was

that instance.

that

the

is

the

property
1

the

to property, but

manifestly

is

means

broader

It is the business

fundamental

but
of

than

its

thing;

instrument,

rendering service

surance

(German

Co.

v.

Alliance

In¬

Kansas, 233 U. S.

389-434, April 20, 1914) and coton ginning
(Frost v. Corporation
Commission) to be affected with
a

public

of

one

that

the law

vice
is

interest and

denied

the

application of the concept to the

in

York

it

.

jf

one

which

embarks in

public

shall be

as

is

is

Under

course

to

an

of

public

the

continuity

and

the

general

people, who
achieved

of

the

can

an

industry

decision affect

service,
welfare

prices,
of

the

deny that it has

status

of

is

of

govern¬

of

The general
be free

concern.

that

shall

both

Government

a

public

utility and becomes thereby sub¬

to

fellows,
•

own

form

use

interference.

nor

for

citizen may at will use his prop¬

erty

ensue.

declared a public utility.
Where,
therefore, labor has gained a po¬

b.y its

New

But neither proper .y rights
contract rights are absolute;

demands

rely without re¬
alternative it can be

can

v.

government cannot exist if the

to

and

legal

find

opinion of Mr.

property and
the making of contracts are nor¬
mally matters of private and not

business

a

interest

sition of dominance in

the

our

the

ment

was

the

forced

pub¬

York:

new

public feels that a
calling has become one upon which
it

in

Justice Roberts in Nebbia

a

clear, therefore, that if at

time

any

as a

necessary regu¬

propositions

precedent

*

It

public interest
the absence of a
of competition is

by

such.

These

it

regulated, he must know

regulation will

in¬

(3)

which the

utility and the

lation

also held that
:.

public whose
always paramount

degree
subject to classification
lic

from
New

that
pro¬

the

affected

progress.
v.

factor of

a

public

regulation for the

of

is

rule

Nebbia

the

i

that

this

and

proper

recent

well-estab¬

meet

pub¬

or

it follows logically that any

development of commercial

In

.

development

activity in time that develops into
rendering of an essen.ial ser¬

science,
simply extends

lo

as

so

.

that

the

that

And

economic

relation between

tection

can

application of
and

and this statute

here

of fixed statutes

warrants

con¬

of any

conceded

conceded

long-known

fundamental

of

not

production

business in which the whole

a

a

con¬

analysis of the conditions

determinant

any

lished principle in social

involves

against exploitation of
In the

hk

its

be

shown

custom; (2) thai the concept
is not applicable solely to prop¬
erty rights in tangible instruments
of production but is
applicable to

precisely

importance.

also

been

lic

public has a direct and positive
interest.
It presents,
therefore,

labor-

the

to

acter

use:

precedent

statute

is

it

public interest concept; it is
product of the extent and char¬

and

good, tc

matter

is

that

great

must

applying the
public utility status. 'This appli¬
cation, as we have seen, may arise
due

he,

public

growth
hai
been rapid, and that it is
already

philosophy of social
has
an
important
the future of Capi¬

that

the

withdraw

a

no

find

.he
a

he maintains the

a

business

origin,

This leads to the third feature of
the American

that

this.

the

has

terest

be found for

distributors

calling by a review of
following propositions: (1)
That there is
nothing static about

i

moment

sufficient

a

to

common

is it

in

The fact that

.;.

.

tus to that

And it must be emphasized that:

like

larger

distributors

public regulation can be extended
to any economic
balling by the ap¬
plication of the public utility sta¬

question

Neither

all

.

It

which

Use, he must submit to the

.

force of public opinion

in

interest

an

He may

as

and

ting and other forms
of destructive competition.

devotes

one

use

grants

long

so

of

requires

smaller distributors do not leads

essen¬

grant by discontinuing the
but

milk

to price-cu

the extent of the interest he has

.

business when

the

interest in that use, and must
be controlled by the

created.

fluid

necessary to carry large quanti¬
ties of surplus milk, while the

submit to

dissenting opinion in Tyson
Banton, 273
U.
S.
413-456,
Feb. 28,
1927, can, ".
subject to
compensation, when compensation
is due,
forbid or restrict any
.

an

effect,

public for the

for

the

a

has

satisfactory stabilization

ihe milkshed.

pri¬

or

an

in¬

v.

.

public

to

exces¬

that the burden of surplus milk
be shared equally by all

supplie
positior

in

in his

.

A

recognized in
(94 U. S. 113-

When, therefore,
his property
the

,he threat from

competition:

prices

154, October, 1876):

Mr. Jus .ice Holmes said

as

eco¬

was

Illinois

v.

a

pro¬

a

monopoly of

a

.

principle

include

sive

This condition gives to the

producer

.

community.

ducers

ac.ivity Of all, public

vate.

the grounds upon which the

lature,

to

certain

a

in

restricting

Mr. Justice Roberts in
Nebbia v,
New York extended this

olistic control and
thereby affects

analysis of
Legis¬

an

place, if
stands

materially

situ¬

a

members

of the

by
their respective
endeavors, thai
supplier has established a monop¬

jurisdiction of

Constitution.

service

a

combination of circum¬

.

where c«ihers in the pursuit oi
economic gain must come .o him
alone for the service required

the police power and the
general
welfare clause without violation
of

first

common

.he existence of

or

nomic consequences
result to
very large number of

determinant of .he "indispensable
In the

toward

regulative force of
compe¬
tition, so thai
serious eco¬

nature" become apparent.

dispensable and, in the absence of
adequate regulation, the life of the
public might be subjected to ar¬
bitrary disrup.ion, can be con¬
trolled

an

of price

directed

the

clues to the characteristics of the

property

service

public to apply it
pursuit, however,

Tyson

to all is

charac¬

nomic

commonly

stances

From the analysis of the evolu¬
tionary character of the public
utility concept and the power oi
the

prep*

Jus ice

ation

-

product.

a

in

price regu¬

teristics, other than negative, laic
down by the Court as to wha^
constitutes the "indispensable na¬

rights vested in tangible resources
or
otherwise, in so far as the pub¬
lic

specific

no

dissent

lation had been
upheld will dis¬
close that the element

arbitrary control to which
the public might be subjectec
without regulation.
are

his

"there

Mr.

sellers An
examination of the
decisions of
this Court in which

.

vice and the exorbitant charges

There

foods."

the prevention of
exorbi ant de¬
mands of buyers and

.

.

in

that

Statutory regulation

and

of

application

imposed

latter, Chief Justice Taft said:




public control of

was expressed
as to
property, and the instance of its

seems

In

be

.

principle

by the unanimous decision in the
Wolff

The

.

.

that

for the

important quali¬

fication of this principle

to which

degree

excessive)

is

to

acting

v.

ascertain the

development of the
economy and may come to any
economic calling.
These grounds
are:
(a) that the product or ser¬
vice is a necessity, and (b) that
competition
is
not
sufficient
(either because it is lacking or

.

in

deter¬

public

fur .her refinement be¬

a

can

"grants to the public

has

Legislature.

by the

through

and

one

.

of

ground

Banton, said:.

-

.

for

.

.

.

of evolution

hence, be
fore

privati, and it becomes clo.hed
with a public interest"
;
and, so using it, the owner

clearly stated that the concept of
affectation with a public interest
is

,

two

erty

its purpose.
this

pursuits would appear, under these
decisions, to be permitted, but
with
limitations.
There
must,

exist

interest

that

policy by legislation adapted to

in

proper.y rights in wealth
the exercise of their economic

in

that

expressed

may
reasonably
be
to promote the public

Court

em¬

ploying

grounds

.

free to

The

not

groups

clusion

be

regulated.
Munn v.
Illinois, 94 U. S.-413, is an in¬
structive example of legislative

of

and

other consti¬

to

to

not

the

power exerted in the

and

status

service
which cannot be demanded can¬

that

terest.

deemed

public

Stone

Co.

which (gives)

.

restrictions, a State is
adopt whatever economic

welfare,

has the

nor

tutional

policy

the

of

monopoly in the

the public interest
(is) the
indispensable nature of the ser¬

.

management crises.

contention

must

ensue.

The distinction,

we

demands

requirement
of

utility

de¬

to be¬

come

such, and have become sub¬
ject in consequence to some

Taft

application

Packing

em¬

by tne

the

no

is

(Wolff

The thing

induce

involving the exercise

be

(Mr.

The

is

philosophy

public has

primarily

.

to

is that the

lieve

to

others

rather

denied

was

on

...

Indus rial Court):

v.

The conclusion can be reached
that any economic calling, whether

public at their inception, may
fairly said to have risen to

.

with

social control in the United States

be

.

the

But

as

them to quit."

fixed

The

Businesses which, though not

ingly.

the

long

so

combine

evolving out of the
dynamic nature of economic life.

Supreme Court has said:

entitled

that

business.

he did "not
agree with his fellows to quit or

cumstances

utility status of an economic pur¬
not static but is a product
of
economic
development.
The
suit is

its private owner,

satisfied

the people, and it arises from cir¬

accepted principle that the public

to

operate
profit under the terms fixed
by the Court, and .he laborer was
permitted to quit if he were dis¬

It

it

and

industry

aration

enjoyment from
the existence or operation of a

of business if he could not

category of economic
pursuits affected with a public in¬
terest; it is a group determined
by the prevailing philosophy of

is increased by

labor

this

owner

without

The power
of

(was)

or

ease

service

Court

benefit, accommoda¬

tion,

a

pack

ing

fact tha. the pub¬

mere

of

al.ernative.

regulation of employer and
ployee in the Kansas meat

arises

as

source

proper

the

is

lic derives

per

at a

through its Legislature and sub¬
ject to reversal in limi.ed circum¬

crises.
the

the wisdom of the

compel

law

Industrial

employment oh terms
fixed by an agency of the State, if
they (could) not agree." The act
permitted the operator to go out

determination of 'the public utility
status rests with the public acting

the future of American Capitalism.

In

wi.h

law, it may^not be annulled un¬
less palpably in excess of Legis¬

at least three features

current

and that though the
may
hold views incon¬

Court

philosophy of .social control. They
have important implications for

the

said

validity,

development of the American

the

have

we

lative power.

become outstanding

have

that

number

Times

.

.

.

an
enactment, that every
presumption is in favor of its

II
are

deal.

io

to

of

Nor

such

meant

from the

and

ness

such

property rights.
In this lies the
challenge to the capitalist order.

There

it, the

Legislature is primarily
judge of the necessity of

the

quite different from our tradi¬

tional process of social control

forward

that the

the

But

to

both incompetent and

are

without

relations

social control of human

.

unauthorized

a
public interest
clearly within the

hence,

.

enacted

courts

with

affected

are satisfied,
and
determination to that

process

judicial

But its avoidance can occur

avoid.

Kansas

Court

maintenance.

its

interest

worker to "continue in their busi¬

a

legislative purpose, and
are
neither arbitrary nor dis¬
criminatory, the requirements of

the

the

Relations

to

are seen

proper

con¬

ra.her a
possible, I would

if

that,

do

passed

reasonable rela.ion to

a

where

case

mitted

If the laws

have

of

right guaranteed by the
Constitution. This was held by the
Court in the Wolff Packing Co.
a

forces

one

interest merely be¬
cause i- is large or because the
public are warranted in having
a feeling of concern in
respect

a

competition
the public to
rely 0n

that

public

pub

developed

degree of absence of

A business is not affected with
a

Bm

as a

Banton) that:

v.

such?

lie utility must have

individuals to contract about their

bia case held:

in han¬

285

Liebmann,

v.

262-311).

affairs,

a

the future of American Capitalism
unless the proper course

son

It encounters, how¬
the possibility that controls
involving
other
than
property
righ.s infringe upon the right of

to

always
subject of judicial inquiry.

Co.

as

herein lies the gravity of
the situ
ation for the capitalist
system
In
the second
place, an eco¬
nomic pursuit classified

Li. ;.p.

The Court has maintained (Ty¬

ever,

in

are

Ice

S.

this decision.

pri¬

a

State
U.

The extension of social control

freedom

into

which the public have
an

which has become of public in¬

I

ject to regulation

(Tyson

JLi2U*W.U.,

V.

418-456, Feb. 28, 1927) and to the
sale of ice in Oklahoma
(New

terest.

a

that ground is justified.

on

importance in understanding the
long-run implications of ihe labor-

Day. It is the purpose of this pa¬
per to review these features and
to analyze their implications for

by a
I
business is
public interest

that

The circumstances of its alleged

features

of paramount

are

declaration

mere

tickets

theater

-Ul'U Ofci

is not conclusive of the question
whether its attempted regula¬

philosophy of public control of in¬
terest

the

.

affected

tional Government.
In the long

.

Legislature

of

Thursday, June 27,1945

the

detriment

of

his

exercise his freedom

or

of contract to work them harm.

fundamental with the
private right is that of the pub¬

Equally

lic to regulate it in the common

interest.
These
of

the

clusive

.

.

.

correlative
citizen

rights, that

exercise

to

ex¬

property
and freely lo contract about his
affairs, and that of the State to
regulate the use of property
dominion

over

and the conduct of business are

always in collision.
of

No exercise

the
private right can be
imagined which will nbt in some

Number 4502

Volume 163

,

•

THE COMMERCIAL & FINANCIAL CHRONICLE
and

respect, however Slight, -affect
the .public; no exercise of the
legislative prerogative to regulate the conduc- of the citizen
which will not to some extent
abridge his liberty or affect his

vice

yield

must

rignt

to

(local

ment crises,

j
labor-manage¬

social control

wnere

prctee„
he public interest is
unavoiuable, two questions arise
from tnese three propositions: (a)
has the labor movement now as¬
sumed the character hat, as here
to

ai.alyztd, places it in the category
or
an
activity "affected with a

interest"

public

therefore,

and,

subjec. to control as a public util¬

applicable

to groups on a
basis oti.er than their exercise of
is

tus

property rights, does he resultant
social problem create peculiar cir¬
cumstances, and if so, what are
their
oi

to the
economic order?

luture

consequences

our

review

The

court

decisions

.he

public

agencies

elected

de¬

through

its

crees, an

economic calling may be

classified
bia

tory

as

public utility (N'ebif the regula¬

a

New

v.

Yoik)

"are

measures

reasonable

relation to

ive

legisl

a

neither

arbitrary

tory.

.

."

.

good
ex

might

proper

and are
discrimina¬

purpose,
nor

The basis for the leg¬

tion of the degree of
the

a

action involves the

islative

tne

to have

seen

or

ent

ques¬

necessity of

service rendered and
to which the
public

subjected

be

tions.

action in the absence of the auto¬
matic

restraints

The

of compe ition.

development

economic

of

society changes the status of eco¬
nomic

pursuits

according

to

the

changing needs of individuals and
the con rol of those needs by spe¬
cial interests.

Automobiles in 1900

little affected with

were

public

a

interest; railroads in 1815, and
electricity in 1882, were in qui e
a different position relative to the
public interest than they are in
1948.

It may

fcre, that

be concluded, .here-

economic change
over

service

a

public has
ject

that through

any group

come

exercises control
upon

which

the

to depend is sub¬

classification

to

as

the

figure

does

i

indicate

and

prices
in

labor

and

stoppages

continuity

essential

he extent to which
liuiuence

lic.

In

utility

this

represents
ot

fashion
oi

to

tne

the

tnese

clearly eviden

It is needless

affect
serviee

labor policies

the interest

status

tions is

of

industries

pub¬

public

organiza¬
that the

public

a

unions

in

certain

cases

clearly in that category.

National
Board

Industrial

reported

that

The

Conference

in

January,

1945, the following indus.ries (ob¬

viously at present closely related
to the public welfare) were operatiqg with 80-100% of their wage
earners under written

union agree¬

ments:

agrieul.ural
equipment;
aluminum; automobiles and parts;
clothing
(men's and women's);
meat

packing; newspaper printing

is made

crises

in

are

erty rights—the regulatory
of the Government in a

and human rights that
can
be
solved, without altering the sys¬
tem, only by the development of
volun ary acceptance of social re¬

power
demo-

cratic state is challenged. The application of the public utility status to a labor union with all of

regula.ory

features,

sponsibility which has not always

clearly

in every legal and

conflicts between proper .y

occurred

in

the

rights, and

eco-

nomic sense, is estopped by the
peculiar implications of the action.

will

case

where

human

concerned; (b)

of

cannot

we

relations

wnere

it

are

human rela¬

history

recent

indicate

not

that

the

labor is dwindling.
poses

labor

on

realizing
that

the

its

This fact im¬

the

current

This conclusion is, no doub
removed

from

the

desire of the great body

and

ers

government

the

of work¬
If

servants.

erty rignts often do, of affectation

another

with

events which proves that economic

of

the

public

to the exercise of

ility

u

turn

on

The

fair

a

fair value of the

a

devo.ed

the

to

be

property right

a

is the determination of

erty

status

long litigation

over

the

en

principles

denial

of

certain

of

the

diagnosis
link

the

of

primarily from

of

leads

too

¬

is

it

thesis

of

A

fair return for

that

when

conse¬

is

anti¬

very

philosophy

L

view,

run

to

the

are

the

high¬

considered

short

a

but

long chain of

frequently

that

quences

The conclusion, therefore, is ob

the

ideals,

planners.

involved.

in

est

democratic

sound,

policy, oiten lounded on the

vious. The only alternative under
the circumstances will be public

problem

is

in¬

masse

governmen..

de¬

termination of the proper method
of calculating the rate base illuses

a

of

the control

(c)

relations

basic

use.

the

controlled;

volves

prop¬

public

prop¬

public interest, they must

a

human

re¬

as

of

the

from

is

capitalism

this

danger.

in

source

It

and

concerned

industry

of the industries concerned which

argue

the

The

be

or

ween

union

management, must realize that

as

industrial order grows, the di¬

of an

area

activity

impor ant

power,

well

as

the

monopolistic

a

the entire undertaking,
many related pursui s,

vitally affected
listic

indus¬

within

comes

orbit of control of

available

by

is

as

will

crea

e

of

nation

inevitable.

the private owners and labor. The

man

application
sta

in

isjof

of

the

public

the

absence

of

the

utility

of

acceptance

ciently

soit

of the logical conse-!
of its action or inaction.

aware

have

to

legal

of

na ure

the

quences

union,

of

source

the

from

from

control

con¬

well

as

is

short

a

this

of

proper y

fashion

essential

has

pro¬

the

that

fulfilled

the

characteristics

the

in

development of the public
utility status: (a) In the normal
course

(b)
on

an

of

industrial

economic pursuit has taken

the status (c) of a monopolistic

far

as

condition

the
is

proper

social

liberty

constitution; for

insured
as

the

by

the imposition

of the public utility status imposes

of continuous service to

property rights it would deny the
right to strike to the
volved.

This

significance

fringement

is

in¬
in¬

persons

clearly

an

placed

of

the

the

that

concerned,

on

diency of the act, we reach, there¬
fore, this impasse: The developmenu of the-economy has unalter¬
ably

the

a

segment

of

nomic

interest

upon

public

society the status of

an

eco¬

pursuit "affected with a
interest" and, hence, of
status; economic development has necessi.y subject to regulation as
created it.
Legal sanction of eco¬ such.
But the legal framework
nomic reality is not required ex¬ of the society imposes a condition
Court

i

approve

s

public

those who seek escape that prevents the regulation even
from social responsibility .hrougn where tha. same framework clear¬
an appeal to the mills of the legal
ly asserts the logic and, from this
cept

by

gods that grind

ever

so

slowly.

viewpoint, the legality of the con¬
trol.

But

the

mere

existence

of

failing the de¬

eco¬

velopment of a proper ideal of
sufficient to: social
responsibility, there is left
command the degree of response
only one solution.
It is a solution
by those concerned that is re¬
that few in the na ion will pubquired to insure the protection of
licly admit they desire. It is a so¬
the public interest.
History has lution that arises because:
(a) The
nomic

reality

is not

shown this to be true of the

use

is

not

It

of

is

most

is

tarian

states

the

to

to begin that
failure to do so

.hing

very

abhor—the

us

capitalism.

Amendment

Ay SEO of
Annual Reports Forms

that government

cure-all for
in tota.i-

a

force

the

where

conflict

of

veil for underly¬

a

But

intrigue.

and

democratic nationalization will be

considered in
we

different category

a

continue to push toward the

apparently inevitable culmination
even

that

s

we

is

course,

social

the

becomes

democratic

interest

is able

the political course
alization

interest
in

function of the ex.ent

labor

The labor

to be pre-

nationalization; this, of

a

which

seem

Labor's

pursuing.

ently

control

to

of the nation.

movement

nation¬

and

inseparable in Eng¬

are

If long held
principle
of
wage determination will lead to
this end; for so long as the hold¬
ers of private property must bar¬
gain over the ability-to-pay with
land, for example.
.he
ability-to-pay

whose

position

of

tially

that

which

cannot

a

is

Securities

it

and

Exchange

recently

had

announced

amended

annual

ports Forms 10-K and 1-MD

there is

no way

except

to

a

public

in

ness

their

in the

case

This

"is

because

of the

of

the

of

process

peace-time
in

many

said

ments

must

of

this

always

sort

desirable

as a consequence
or

occurring

reconversion

activities.

to;

act.

But when the public interest is

This advertisement is not, and

for sate
or

or as a

solicitation of

is under

an

no

solicitation is not authorized

any

changes not indi¬

cases

over

a

lative

period of

years

the

substantial

character of the business of

istrant
one

or

and

The amendment

31.

have

about

time

tional

Where

1945.

already

of

only

restatement

the fiscal year ending
Dec.

for

filed
to

on or

do so,

may

may

The

action

became

effective

the May 22.

.

Share

be obtained from such of the undersigned as are

registered

dealers in securities in this state.

obtained from the undersigned.

Smith, Hague & Co.

White, Noble & Co.

F. H. Roller & Co., Inc.

Detroit

New York

Miller, Kenower & Company
June 25, .19/+6

be

ap¬

plied for," the Commission stated.

(Par Value $1 per Share)

Copies of the Prospectus

reports

furnishing the addi¬

information

Common Stock

§3-123 psr Share

for

after

extensions

(An Ohio Corporation)

Price $4.00 per

re¬

registrants

their

Kurz-Kasch, Inc.

$2 Par Value

reg¬

of the major lines of

more

the

a

its^ subsidiaries or in

the business.

quires

a

change in the general

of such securities in any State in vihich such offering

75,000 Shares

cumu¬

effect of which has been

by the laws thereof. The offering is made only by the Prospectus,

solicitation of

to

vidually significant have occurred

circumstances to be construed as an offering of these securities

offer to buy

in

Moreover,

govern¬

be poised

Com¬

the

major changes in

activities

war

and

engaged.

are

rendered

businesses

many

to the

of

one

registrants

restatement,

mission,

are

interest

which

of human relations. In

situation

re¬

so as

current restatement of

a

subsidiaries

or

out of the impasse

eliminate

secure

utility

be subjected

wi.h

affected

that

essen¬

public

required by an industry

controls

The

property rights; it is equally clear!
a

that

eclipse of

the general character of the busi¬

except

dictatorship is

to

late
our

to

are

structure.

to

notv

conflict

of

of

we

of

.rue

social

if

too

lead

will

if

operation

of

ownership

ing

of

guarantee

a

and
a
assumption of
responsibility by organized

unions

IV

In this situa ion,

be,objected tha. nation¬

degree

labor.

,he constitutional
protection to individual liberty.
development I Aside from the political inexpe-

regulator of services required by
the public.
It is not required, in
so

of

not

Commission

approach.

run

continuity

would also deny the fundamental

the du y

in

movemen.

three

the

solve

as

duction.

labor

not

gran,

rights in the instruments of
It

would

is

act

capi.alist

approach, but

It will be the long run price paid

and

for

stem

achon

It

must

our

where

process

putes, while recognizing the true

unable

can

¬

monopo-

alternative

human

social

a

alization

this

be

mean

segment of

a

a

tha„

certed

not

labor, management, gov
ernment, nor the public is suffi¬

difficulties

of

need

neither

competition
would i involved,
provide, the entire industry is ef¬
The application of the public
fectively monopolized. Monopoly
utility concept to labor unions

supply

ownership will

This

preserve

design; it will be the culmi¬

nation

It may

an

crises, the elimi¬

that the process will occur by hu

under these conditions and

us

by organized labor

new

that

he basic conflict concerning
the distribution of returns between

solve

private ownership

any

dominated

are

and,
course, it would fail utterly to

of

since

proper degree of social responsibility by the parties to dis-

that

Where

power.

industry

an

a

labor by government
boards so
the industry |
long as the enterprise is owned
protect the public. by private individuals would in¬
American people, labor and
volve an unending problem

and

an

determination of

coikroon sttccx




far

,

logic and

tion

first

Douglas & Lghdsoh CospaEy

June 25,1946

has

position

tions achieve the status,

the

92,118 Scares

F. & Holler & Co., inc.

of

necessity

responsibility

new

place, the primary
problem involved in the applica¬

In

of these securities The offering
only by the Prospectus.

Copies of the Prospectus may be

does
of

power

created.

property

assume

and

parties,

is from the long run view that all

This advertisement is neither an offer to sell nor a
offers to buy any

labor-management

control of the property concerned,

ility if the other necessary con¬
ditions are present.
Labor

between

competitive conditions within the

u

are

relation

a

essence

tra

.

by

persons—not an exercise of prop-

its

by labor organiza¬
degree to whicn wage

The

rates

arbitrary

to

by

affected

same| logical

controlled

are

any

when

covered

ent to which labor services

ex

trial

of

that

shown

has

workers

vision of labor progresses until if

Ill

a

unions,
the

(b) if the public utility sta¬

ity?

maintenance; trucking
intercity). While the

of

tne number of members of labor

as

current

the

and

union agreements is not the

the

public need.

and

number

iiutional restraint the pri¬

vate

In

basic steel; bus'
(local); coal min-1
ilongshoring; maritime; railroads
(freight
and
passenger,!
shops and clerical); telegraph ser-!
car

mg;

But subject only to

property.
cons

publishing;

and street

3507

on

3508

THE COMMERCIAL & FINANCIAL CHRONICLE
M

mmm

___

M WM

hjb

m

up

Should We Make
amounted

(Continued from first page)
tion was a comprehensive study
setting forth in considerable de¬
tail the need for, and the security
for such a loan.

But

no

In the

difference
to

the

of

Administration

the

at stake in

issues

Italy is
surprising because
every argument so forcibly and
ably advanced by Messrs. Vinson
the

all

and

more

Clayton

equal justice be applied to Italy.
The difference is solely one of de¬
gree, not of kind.

have

the

war.

Italian

resting

Italy's needs

interest

I

as

American interests. Just

America's

case

I

that

I

argument

my

much

as

as

to

the'

ceived

less

300,000
strike

am

on
on

it is in

advance

is

that

I

am

discussing a loan and not a gift.
frequently, the discussion of

is due to

Italy
but

to

this

that they were in reality
I will revert to this point

later.

be

economic

presented

though the

problem

can

simply.

Al¬

resulted in

destruction

mous

—some

Unimpaired

quite

war

sources

in

enor¬

that country

place

damage

at

one-sixth of the national wealth—
the capacity to produce was not

seriously impaired.
and

courage

Thanks to the

vigilance

of
the
industrial

Partisans,
the
main
plant of Italy in the North
from

saved

German

was

demolition.

The damage to the ports and rail¬
roads is

being repaired though it

will

many

be

calamitous

six months.

in

end

had

to

appear

also.

In

cases

the

It would

the

British

American
were

the

before they
regain their 1939 condition. Given
years

good

check

to

on

and

Gov¬

at some

probable

between exports and imports

gap

the

and

that

amount

to

necessary

would

to

export

be

for

pay

necessary imports.
Italian tech¬
nicians
have
made
preliminary

studies

matters.

Government

The

has

sug¬

however,

lump

a

these

on

that instead of
advance, a line of

sum

credit be opened. In this
way bor¬

rowings would be limited to what

absolutely necessary and fore¬
could

be

checked

against

actual experience.

While

recognizing the tentative
forecasts, they do

nature of these

provide a useful benchmark of
approximate magnitude of the

the

needs.
at the

These

estimates, prepared
beginning of this year, en¬

visaged
a
two-year
period
of
large imports before Italy's inter¬
national

payments
could
brought into balance. Import

quirements
calculated
be

for
3

at

the

period

billion

be
re¬

were

dollars

to

met

roughly by $1V2 billion
loans, $1 billion exports and $500
million

from

quirements

pected

UNRRA

After

sources.

was

re¬
ex¬

that

import requirements
would settle around $1 billion an¬
nually, which could be comfort¬
ably furnished through exports

weather,
fertilizer,
and
and
Italy's invisible exports of
equipment, the soil of Italy is just
as capable of
high yields as ever. immigrants' and workers' remit¬
By general testimony, the people tances, tourist expenditures and
are as industrious and as
shipping services.
eager to
work

as

It

ever.

What,

then,
is holding Italy
Quite simply, it is for the

back?
mdSt

lack

part

of

circulating

or

working capital, fuel and raw ma¬
terials. A concern
might have the

is

needs

possible
have

that

been

the

initial

overestimated.

For

one

thing Italy bids fair

fill

its

textile

to

requirements

best plant and labor force in the
world, but if it has no fuel or raw

through payment in raw materials
for the
processing of cotton and
wool for foreign customers.
On
the other hand, there is
urgent

material,

need

it

can

not

produce

nor

furnish employment.
Must
It

has

Export

often

or

been

Die

pointed

that England must
export to live.
This is even more true in
Italy's
case.
It has, for one

thing, almost

no

fuel.

been

is scanty and
Its forests have

coal

grievously depleted through

excessive
poor

Its

in quality.

poor

cutting.

It is similarly

in

raw materials of all
sorts,
textiles to iron ore.
The

from

economy of

Italy rests

on

the

ex¬

port of labor in the form of proc¬
essed raw materials and food
spe¬
cialties and the import of fuel and
materials.

The situation has been
compli¬
cated by a food shortage.
Nor¬

mally Italy is fairly self-sufficient
in

food, when allowance is made
for the food' imported in
exchange
for food and drink exported.
For
the past two
years, however, the
harvests have been sub-normal
for

a

clude
,

variety of reasons which in¬
drought, shortages of fer-

tilizer

and

equipment.
For ex¬
ample, the wheat harvest in 1945




for

modernization of Italy's
capital equipment, which should
pay off in reduced costs of pro¬
duction.

out

swell
any

This,

however,

would

requirements initially.
case
the estimates are

mittedly provisional

and

In
ad¬

our

purposes in

indicating the
magnitudes
involved.
They
indicate
that
$1
billion
would go far to putting
Italy on
relative

its economic feet.

resents

our

Vz

$1 billion is well
ability to lend. It rep¬
of

1%

of

our

current

technicians

emergency
period is
In view of the current trend

past.
in

prices, this figure

lion of visible

In

view

exports is posited.
the fact that in the

of

serve

national

interest would

by making the loan and

what are the prospects that it
would be repaid.
I shall consider

these

questions in

reverse

order.

The Chances for Repayment

an

easily

attainable

other countries'

running far in

be

figure.

exports are
of 1929

excess

in

value.

of

The invisible exports

appear to

equally conservatively esti¬
Thus, in four years' time,
is anticipated that tourist ex¬

mated.
it

peditions will
$75
million.

regain

figure of
Considering
that
expenditures in the 20s

tourist

$120

average

a

million

that incomes

yearly

far

are

and

higher

now,

the estimate of $75 million should
not be too difficult of attainment.
A former good source of reve¬
to

nue

Italy

from

came

remittances.

In

the

amounted

as

much

to

expenditures.

In

emigrant

20s

these

tourist

as

the

depression

they fell to $40 million

and

been slow in coming back.
tor affecting this is the

have

A fac¬

expected

annual

from

volume

Italian

numbers

of

remittances

workers

anticipated,

will

who,

it

is

in

move

large
Belgium.

to France and

The yield from these two sources
in a few years is estimated at
$125
million annually.

Merchant Marine- Earnings
A final source of
in

few

a

yield

from

million.
that

In

this

mer¬

the 20s the net
source

$50

was

It is especially important

Italy be permitted to

tablish

its

as

again

once

earnings from the

chant marine.

merchant

re-es¬

marine

as

The Italians

possible.

are

expert and low-cost shipbuilders
and ship operators.
A substantial
element in their estimates of dol¬
lar requirements in 1946-47 is for
the

of

purpose

paying

freights.
return of certain ships,
the repair, completion and sal¬
vage of others, and assistance in
purchasing surplus ships from us,
With

it

the

should

take

not

long

before

Italy will be carrying not only its
but

own

also

a

portion

countries' goods.
It was mentioned

other

external

small.

It

which
over

not

settled,

help

has

been

too-late

The

a

peace

still

and

of

smaller

terms

are

economic

the

too-little

variety.

'

remarkable

thing is the
restraint
exhibited

that

Italy's
is

mostly of the
dollar credit

a

that

Recently only 20-25% of expendi¬
tures

covered

were

represented

by receipts,
large a pro¬
the proceeds

of the tobacco and salt

monopolies

and the sale of UNRRA goods.

It

is anticipated that the election and
the settlement of peace terms, the

stabilization of prices and the re¬
ceipt of a foreign loan will cre¬
ate

conditions

cisive

attack

favorable
the

on

to

de¬

a

fiscal

prob¬

lem.

Assuming, therefore, that Italy
is

a
good economic and moral risk,
what have we to gain by making

loan?

a.

of

The gains, from

view,
In

the

field,

to

appear

economic and

Italy in the
two

completely
to

posed

be

twofold,
economic

period
that
are

prewar

unutterably

basic

our

These

autarchy,

were

national

as

possible, and for

self-sufficiency
or an

as far
rest, bi¬

the

attempt to make

trade balance out with each

try.

op¬

foreign trade

or

lateralism,

coun¬

Happily, both these policies,
with
Fascism,
have

associated

fallen in disrepute.
all

parties

in

their

ideal

with

All leaders of

Italy

assured

was

me

Italy in¬

an

freer trading world

a

goods produced where they
most efficiently

be produced

can

with

and

and

the

of

measure

largest

freedom

of

possible

something

million

and indebted¬
to Switzerland amounting to
It should not
prove difficult to make a favor¬
able settlement of these debts and

Actually,

however.,
Italy
is
severely limiting its imports and
is striving to produce whatever it

which I
making

that

the Italians

their

are

insincere in

protestations.

In

the

ab¬

of working capital and for¬
eign exchange, they have, unfor¬
tunately, no choice.
They must
cut down imports and limit
pur¬
sence

chases to sales.

The danger to us
policy, adopted as a poor
but only possible
course, may in
is that

a

again

desirable

as a

interests

arise

course.

with

protection extended

each

Vested
bit

of

and with

the

be
and

pears

able

to be

advances

assistance,
good

a

of

Italy

risk

working

ap¬

for

such

capital

as

necessary to get the economy

The

visible

growth
and

of

exports,

invisible,

is

both

not,

of
The

course, an automatic process.
Italian Government must be pre¬
pared to take energetic measures

to

encourage

and

foster

exports

particular, the exchange rate

from

be such

as

to provide

exports.

an

In

must

incentive

Unfortunately, that

not been the case to date.
Prices have risen further than the

steady improvement

in

their

If

they ever
lose that hope and belief, the
po¬
litical

outlook will become grim.

seems

least

at

possible

that

that

hope will be lost if UNRRA
is
allowed to lapse without an
adequate credit having been ar¬
ranged in the meantime.

Time is

growing short.
It takes time to
arrange loan details; more time to
plan

orders

still

and

suitable

advance

is

not

shortly, Italy will face
ficult

If

a

made

most dif¬

a

winter.

change
and

to

more

delivery and to ship.

secure

Such foreign ex¬
it has will go for fuel

as

food.

The process of secur¬

ing raw material will be slow and
painfully spread out with result¬
ing low standards of living, un¬
employment and the necessity for
continued

restrictive trade

prac¬

tices.
not

am

who believes that

one

should grant or withhold loans
of

means

bringing

a

on

the internal political structure

of

other

dollar

countries.

pressure

This

type of

diplomacy is dangerous and
two-edged sword.

a

to be to

policy

use

our

appears

enormous

economic power
struction and to

to hasten recon¬
bring about con¬
ditions of full employment and
rising standards of living through¬
out

the

world.

In

this

way,

we

strengthen democratic institutions

by removing economic insecurity
and fear, and we give people a
stake

the

in

The

existing system.

current

explanation

of¬

fered by Washington for the delay
in

acting

on

plication is

the Italian loan ap¬
Soviet, Yugoslav

the

said, be put in the position of pro¬
viding Italy with goods to pay
reparations.

it

do

ours

indefinitely.

sooner

rather

than

may

later

to

get the full benefits.

Greece

tions from

reparations

centered

derive

road

greatest benefit

we

would

from

to

We

growing

cannot, in a world
with each year

smaller

and each

to

the

invention, be indifferent
attitudes, values and des¬

tiny of the 45 million people oc¬
cupying the Italian peninsula. We
have surely learned by now the
threat

to

offered by
and

all

constructive

values

hunger, unemployment

frustration.

The

democratic

weathered

its

first

process

has

great task in

Italy, but it is still a frail plant,
lacking, as in Anglo-Saxon coun¬
tries, roots reaching deep into the
history of the people.
We have
already imposed grave burdens on
the development of the kind of
peace-loving, constructive and
democratic country

we

would all

demand

Italy.

for

repara¬

We cannot, it is

This argument, while it sounds
plausible, will not stand analysis.
The

Benefits To Us
The

peace.

advice

worse.

and

which

policies in
Monetary Fund
to give technical

be

conclusion of each bilateral agree¬
ment.
We still have the possibil¬

wise internal economic
and the

a

economic condition.

me

setting Italy on the
becoming economically
self-supporting lies in the field of

we

of

to

decent

in

not

safer and wiser

of interest.

must assume

"the

They will endure it, as they have
been doing, if they have
hope—
if they can believe in the
prospect

A

should

of

to the

of

feeling that their

might become

Italy.
It is also conclud¬
series of bilateral trading
This does not mean
agreements.

we

foreign loans, and the adoption of

for

could

a

going to loan to Italy,

a

blamed

in

It

we

be

condition

ing

we are

therefore,
world trade,

institutions,

acceptance

who could get
things
done."
There are today millions
of people in
Italy who can hardly
man

can

If

leyel

strong

as

not be

Assuming,

democratic

we

ity of reversing the trend.

think

of

hopeless

exporters in buying and sell¬

around $100 million.

arrears

conditions
than
these
before led to the
overthrow

once

I

ing.

Democracy

Better

importers

ness

the

The Preservation of

It

policies

and

philosophy.

living has
risen to 23 times its 1938
level
whereas wages have risen
only 13
times. Foodstuffs
consume almost
75% of the family
budget, leav¬
ing little for anything else.

political.

international

followed

point

our

rations are at the lowest
point in
recent Italian
history; coal sup¬
plies permit only sporadic
pro¬
duction.
The cost of

time become set and be regarded

amounts to

now

$150

other

of

indebtedness

consists

unpaid portion of

has

to

things

done

tegrated in

exchange that

should

years

appear is

for

as

other

are

be

by Italy, such as
putting its fiscal house in order.

that

States Government

ings, could be serviced both

There
must

be

Most

the starved domestic market.

its borrow¬

Undertaken

portion

long-term amortized loan,
carrying an interest rate compar¬
able to that paid by the United
on

to

rate of exchange.

and of the latter too

and to divert resources
away

A

assistance

period 1925-1929 exports averaged
$750 million, this would appear to

functioning again.

we

render

Fiscal Reconstruction Must Be

have to

may

be revised upward.
To pay for
these imports a figure of $850 mil¬

are

what

could

proper

economy

the

and services.

are

might jointly be concerned

and

the needs of the Italian
after

annual

capacity to produce goods
The more
important
questions that we might well ask

Fund

Monetary

Italy in the determination of the

should

Obviously,
within

Government

the

and

$1 billion of imports
annually will be adequate to meet

subject

to refinement. They are sufficient
for

Italian

soon

heavy

it

met

are

other

and

initial

higher in price
relative to domestic goods than
they were in 1938. This is a mat¬
are

and

discipline and

terms

borrow and
to be in our

British

British-Polish

force

American force;

by the Italian people under
these
most trying of
circumstances Food

alternative

no

however,

would

the British and French loans im¬

Italy's

have

of

coal

recent

accept charity.

interest

casts

Capacity

will

has

prefer,

is

Productive

average

The

throughout the summer in
It seems apparent that
UNRRA can merely prevent condi¬
tions from getting worse.
It can¬
not possibly make Italy self-sup¬
porting. In any case, UNRRA aid

Too

plied
gifts.

an

re¬

Italy.

gested,

outset

than

has

and

occupying

Government

foreign indebtedness that
require servicing.

estimate that

most

results

Italian

England and France, so
Italy. An¬
other point that should be made
the

it

months

tons.
here

credit to

at

the

meet

past nine

it is to extend credit to

clear

to

Still

of expressing the
same thought is to say that Italian
goods and services to Americans
way

see Italy
become. DesnitA
Italy's contribution to the
defeat
of Germany, it has
had to sun
port to date a large

would

been

urgent fuel needs.
For full pro¬
duction Italy needs to import over
700,000 tons of coal a month. For

abroad than at home.

power

another

like to

ter with which both the American

during

also

exports and the volume

exchange rate has fallen.

In other words, in relation to 1938,
the
lire has
higher purchasing

of other

below

reached

pains

outlining Italy's
like to emphasize

not

am

point

cut

be

ernment technicians

Situation

Before
should

to

UNRRA has

attempting

French
The American Interests in the

had

lowest

in

support of the
British and French loans can with

is

food

mates of

the

from the exports it has been able

tion in 1932 looks like prosperity.
The apathy and apparent in¬

in

tions

meantime, Italy struggles

develop. The day when it can
become self-supporting and take
its place in a multilateral trading
world is postponed. Of far greater
seriousness, the struggling new
Italian democracy is asked to bear
a
crushing economic burden, in
comparison with which our condi¬

deficit

current

portant question, therefore, in this
context is the goodness of the esti¬

being, at least in part, overcome
by UNRRA, although bread ra¬

^along with such help as it can get
from UNRRA and the proceeds
to

invisible exports of Italy. The im¬

UNRRA Help Insufficient

The

Italy?

principal and interest at less than
$50 million a year.
This is only
5% of the anticipated visible and

million tons.

this

on

to

only 4 million tons,
comparison with a normal 8

in

action of

any sort has been taken
application.

Italian

Lo< in to

a

Thursday, June 27, 1945

certain

around

assets.
It has
or in conflict
credit that will enable Italy

existing

nothing in
with

a

discussions have
the transfer of

common

to pay for its necessary imports in
the future.
In other words, we
not

being asked to "provide
loan goods that will be
paid over in reparations.
Our
concern is that Italy gets back on
its feet as soon as possible and
that we get repaid.
We are naturally concerned to keep repara¬
tions as low as possible but the
figures
currently
being
men¬
tioned ($300 million as a maxi¬
are
or

even

mum)
to

are

not

prejudice

our

such

as

seriously

major objectives.

On the other hand, every day w0
delay granting a loan costs Italy
heavily in loss of possible pro¬
duction. The cost to Italy in idle¬
ness the past six months amounts
to
many
times any reparations
figure mentioned.

Number 4502

(Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

high labor cost.s will prevent the

Inflation in Real Estate Prices
(Continued from page 3476)
jbuilt

were

home some seven or eight

a

which cost him $8,000.

years ago

nights ago a total stranger
walked into his house and offered
him $16,000 cash on the barrel¬
head. A country banker up-State
told me a story not long ago of a
mortgage his bank had held on a
farm.
The
mortgage
which
amounted to $4,000 went into de¬
A few

fault some years ago and the bank

It

foreclosed.

stuck with the

was

away fighting, many families
doubled up. Young wives took

their

children

live

ter

the

them

are

already
homes

to

went

getting married or have
married. They want
their

of

the

in

own

com¬

munities where they plan to live
and work.
To add

to the difficulties, both
labor and materials in the build¬

ing field

acutely

are

scarce.

property for years. But when real

this

estate began to pick up again the

inevitably, hit the real estate

spent a couple of thousand
dollars
improving the property
and finally succeeded in dispos¬

ket with

ing of it without loss.

tion

bank

The other

day this bank received an appli¬
cation for a mortgage of $12,000
en
the same piece of property.
that is not

But

cording to

Ac¬

item I recently saw
one piece of prop¬

an

in the papers

erty

unusual.

so

the

of

credible

as

so-called

that

us

of

think

years

that

How

The

Long Will

1929

is

that,

in¬

in

tell

"new era" in

a

to

respect

the

boom

those

—

who

last another five

or

those who think it

and

question

examination
of the

the

of

basic

current boom.

of

these

dwelling units

value of the currency

w©

and

is

an

as

was

the
war

is clearly

the case in many
foreign countries today? Or is this
a temporary phenomenon like all
our previous post-war price rises?
During and after every past
war
in
our
history the general
level of prices rose sharply; but in
every single case prices ultimately
returned to their pre-war level.
Sometimes the entire period of
decline
was
relatively
short,
sometimes long; but in all cases
the extreme peak of the wartime
as

off

sliced

was

pretty

promptly and pretty drastically.

housing. In

well be that the
general level of prices will rise
further before it recedes; but this
much
is certain:
If we do not
may

very

fairly sharp price reaction
within the next year or two then
we shall have definitely departed
a

the

from

pattern

which
well

thus

has

previous

of all

inflations

wartime

—

far

pattern

a

fairly

been

to.

adhered

not

single

a

year
non-

farm homes built equalled the in¬
crease in non-farm

replacing

families, much
a

and un¬
result, by

an

estimated

over-age

structures.

there

As

were

7,000,000 slum dwellings

other

or

substandard houses. And it is
of-

day
ap-

:lav

cur¬

rently estimated that
1,000,000 families

over

doubled

up.

New York

In

we

well

need

ter-million houses

a

over

t is
ro-

pay

live in

a

now.

pay.

No

one

shack.

national

income

in

or

increase

The

the

war

years would have created a hous¬

ing shortage, even if the physical
supply of houses had previously
kept pace with the growth of
population.
been

an

Since

1939 there has
rise in the

enormous

ability of people to pay for hous¬
ing. it should not be forgotten
that as recently as
1940 there
were
10,000,000 unemployed in
the country. Income payments to
individuals

increased

have

ings of factory workers have gone
up from $24.58 in 1939 to $42.14
last March. Beyond that there is
an abundance of ready cash. De¬
mand
deposits and currency in
the

hands

trebled

in

the

of

the

Moreover, the

past

public

have
years.

seven

for hous¬
ing has been suddenly intensified
by
the

tha end
war,

pressure

of

while

the

war.

During

the young

%




men

will

there

to

be

no

prices.

return

Such

reversal could only be ac¬

a

pre-war

considerable hard¬
entire economy.
It

companied by

in

ship

the

would make far

the

task

of

national

more

carrying

debt;

business
and

burdensome

for

keen

years.

many

still

inevitably true that a
shoddy, jerry-built bungalow is
going to continue to cost $10,000
or

is

as

more

the

often

to¬

case

I certainly hope not.

day?

We

cannot afford to pay $100 a month
for the purchase of a house. If the

would

again

being pressed

witness

houses

the market from

on

who

man

is

making $50

The
week

a

distress and sold quite possibly at
prices less than their cost of re¬

great majority of American

production.

income are to have decent homes
Post-war Depression

a

men

and women of small and moderate

our

let

later

their

from

down

come

levels,

of

the

to

real

We have seen that
prices are the
acute shortage plus

high

an

buying power. A

good

many persons have concluded that
these factors are of durable char¬

accordingly, real
estate prices must remain high for
an
indefinite time; certainly at
least five or six years. It is argued
further that, in any event, the
level of pay of building workers
is now much higher than in the
past; that pay scales have become
inflexible and that consequently
acter

that,

and

is

there

no

reduction

prices
main

in

basis for expecting a

building costs; ergo,

of real

property must re¬

high.

Let

us

examine

some

of

the

premises. First, as to the existing
scarcity of homes. It must, I think,
be agreed that it will take several
years, at least, to overcome the
physical
shortage
of
dwelling
units. All other things being equal,
shortage of housing is likely
continue for some time. But,

of course,

all other things do not

able
of

have

seen

that

if

is

it

of

to

a

be

consider¬

stand

not

less

costs

tween

price

and

be¬

of

production and
have combined to

ceilings

in

while

cost

Home

virtually

Building Costs Can Be

there

is

plainly
savings

creased

be

room

and

for
in¬
increased

It is said that

efficiency.

quality goods it is eager to buy.
Instead, in many lines there is
little but shoddy, inferior goods
at high prices and black markets
are flourishing
in all directions.
This situation is threatening to
bring on another kind of strike—
happened in the real estate field
the

West

headline

from

Journal

sub¬

a

Houses

Double

quotes

clients

tired

and

ads only to

is worth

Level."

three

even

answering
some

dump

what

times

it

these days." If that

psychology develops, pro¬
late and the
long-deferred post-war prosperity
may
prove
short-lived and
illusory.
duction may come too

I

not

do

tions.

I

venture

merely

any

predic¬

that

say

these

things could flow out of the con¬
fused, muddled condition in which
our

economy

now

Following this line of thought,
have to ask ourselves whether

side

monetary
factor

has

as

posed.

It

money

of

been

a

sup¬

have
with
and

the bank
inflation of

in

This
supplv was

currency.
money

durable

accumulations of ready

enormous
—

is as
widely

the

on

is true that we
from
the
war

emerged
cash

demand

a

our

consequence

wartime deficit financing. But

this factor
of
inflation has now ceased to
operate. The national budget is
it should be noted that

to

close

a

balance.

So

been

I

would

But

cropper.

rash

so

will

will

I

far

is

real

come

from

deflation in bank de¬

estate

Real

past,

prices, as in the
fluctuate with general

will

again real estate will suffer
like everything else. Apart from
general
economic
factors,
the
present
real
estate
market
is
come

clearly a product of inflation. Ul¬
timately the factor of inflation
will

the water will

of

some

thrift institutions

our

real

the

occurred

problems

thought we had no problems. The
headaches and heartaches of the
Thirties were the product of the
mistakes
fore.

It

the

of

boom

the

was

loans

times
we

be¬

made

when prices were high and every¬

thing

that

booming

caused
the sleepless nights years later.
Once again prices are high and
booming.
Once
again
we
are
drinking the wine of inflation
which will surely give us some
was

immediate

The

not

loan

of

blind

desire

this

for

ex¬

portfolios
the

to

us

of

reliance must

time.

be upon

must
very
real
Our

chief

ourselves,

depend

sense,

judgment. Upon the de¬

real
our

we

estate

will

inflation

salvation in the

this

at

prices

are

bound to stay up

present levels or better because

Power

Edison

and

and

of

stock
Co.

electric
in 236

generates

distributes

it

in

also sells electric
wholesale to ten mu¬

company

at

energy

nicipalities
tric

four

and

other

elec¬

companies in Ohio.

Transfer Curb
At

of

Membership

Curb

announcement

the

transfer

of

New

held

Exchange

19,

the

of

Governors

the

of

meeting

regular

a

Board

ship

from

June

made

was

of

regular member¬

W.

Arthur

to

Pearce

B. Geis of Newburger

Leonard

&

Hano, Philadelphia, Pa.
The

board

election
the

of

also

following

membership

to

ef¬

become

1, 1946:

Orchin

Louis

&

the

approved

associate

to

fective July

of

Voorhis

Kalk,

Co., New York, N. Y.
Richard

N.

Frankenbush

D.

Frankenbush

&

Co.,

New

of

York,

Y.

NOTICE OF REDEMPTION

BOSTON',

|,f

Holders of

the

GULF STATES
UTILITIES COMPANY
First Mortgage and Refunding Bonds,
Series D 3V2%r Due May 1,1969
NOTICE
suant

that

GIVEN

HEREBY

IS
the

to

of

provisions

the

pur¬

Indenture

dated September 1, 1926 between Gulf State#
Utilities Company and The Chase National
Bank of the City of New York, trustee (Cen¬
tral

Hanover

Successor

Trust Company,
supplemented ana,

and

Bank

Trustee),

as

modified, and pursuant to the provisions of
the aforesaid Bonds, Gulf States Utilitie#

Company has exercised its option to call for

redemption, and will redeem and pay, ©a
July 26, 1946, all of said Bonds of Series 0
at 107% of the principal amount thereof;
together

with

interest

thereon

accrued

to-

said date of redemption, being the redemp¬
tion price specified in said
Indenture a#

supplemented
Bonds.

and

Under the

supplemented

as

modified

and

of said

terms

modified,

and

in

the

Indenture
of said

all

Bonds have ceased to be entitled to the lien

thereof,

and from and after July 26, 194ft
all of said Bonds will cease.

interest

on

All said Bonds should be

of

and

redemption

Central

at

presented |pr
the principal

Bank

Ilanovcr

and

Trust

Company, 70 Broadway, New York 15, NV Y.»,
with all appurtenant coupons due on a
after

November

principal

to

as

Bonds registered

If 1946.
be

should

accompanied

by

duly executed written instruments of transfer

blank.

in

GULF STATES UTILITIES COMPANY

v..
Dated

By R. S. NELSON, President,

June

1946.

26,

PAYMENT

MASS.

—

IN

.

FULL

IMMEDIATELY

Holders of Gulf States Utilities Company
Mortgage
and
Refunding
Bond®

Series D called for redemption by the fore¬

Notice

Ralph

with

F.

31 Milk Street, is now

business as a corporation.
Officers are Ralph F. Carr, Presi¬

and William S. Thompson,
Both were partners in

Treasurer.

predecessor organization.

obtain

of
the

Redemption

may

redemption

full

immedi¬
price

of!

including interest thereon to
1946, by surrendering such Bonds,

Bonds,

July 26,

Ralph Carr Incorporates

the

issued

common

First

years

doing

estate

The

ately

dent,

the

of

all

owns

Ohio, including
Akron, Youngstown, and Spring¬
field, as well as in rural areas.

said

Carr & Co.,

that

turn

outstanding

going

end.

effect

new

exercise mod¬

ahead.

prices has required a continued
expansion of money; when the
money
supply ceases to expand
the price rise is usually near its

the

shares

offered, the company Has
outstanding 1,795,847
shares
of
common
stock, all of which are
owned by The Commonwealth &
Southern
Corp. Ohio Edison in

experi¬

eration and understanding in

common

our

current

generating

the

to

being

office

tojmrn for some time but no more

to

addition

payment

headaches tomorrow.

more

to which

made

In

be

earlier, at a*time when we

much

gree

is

steam-electric

capacity.

over¬

and

that
real

tional

the difficulties of defaulted

ence

remain high; but it is not rising.
Historically a continued rise in

the installation of approxi¬
mately 55,000 kilowatts of addi¬

the Thirties
period of intense problems.
Only within the past few years

upon

being added to the flame.
in the boiler may

pects to spend another $7,000,000
for

a

But

its

to

1946 approxi¬
mately $5,000,000 is expected to
be
spent for ordinary property
additions. During 1946 or immedi¬
ately thereafter the company ex¬

We look back upon

have

the

for

additions

During

To

but the inflation of the
supply has ended. The fire
that has been built will continue

pressure

properties.

estate.

out of real

squeezed

as

$7,961,784,
of

off and when that hao-

wear

pens,

at

construction

economic conditions. If hard times

posits;

is

as¬

tate values.

money

fuel

estimated

a

that

assert

solid basis for the

no

hazards

The

to

as

current

is

stock

share.

per

The company will use net pro¬
the sale of the stock,

York

the

inflation

estate

to look for any

substantial

be

not

when

predict

pansion

no reason

will probably
competitive sys¬

our

The

Co.

ceeds from

ways

tem to reduce costs.

the debt has actually
reduced in recent months.

increasing,
There is

in

a

houses

mortgages and frozen real estate
which developed in that period.

we

of

for

exist,

be found

come

flounders.

Monetary Inflation at Peak

factor

does not

Los

one

of

learn that

cost

Coast

in here who say they

come

sick

are

Public

Edison

priced at $41.25

&

If,

run

sumption that we are in any "new
era" or on any "permanent high
plateau" in the field of real es¬

saying: "I have

as

market

mass

long
$10,000

reads:

It

Pre-war

dispatch

Angeles broker

the

in

however,

can

there

West

on

a

$6,500 pre-war house
built today
for $10,000.

Street

Wall

Strike.

Prices

is

Here

3.

Buying
as

The

the

June

of

"Home

Balks

Coast.

Ohio

Stanley

communities

stantial

buyers' strike. This has already

headed:
Co. pn
June 26 offered to the public a
new
issue of 204,153
shares of
common
stock, $8 par value, of

Morgan

energy

Perhaps nothing so spectacular
that is possible in housing; yet

as

deny the public the kind of high-

a

An underwriting group

by

Pennsylvania

of workers.

pay

Reduced

our country.
We must get
production going and get it going

fast. The epidemic of strikes
the growing
disequilibrium

Ohio Edison Common

Ohio

must, somehow, break

Now what of the argument

part of the existing scarcity
due to the fact that

houses is

But

effects

will

grips

usually remain equal.
We

we

the

present

the present stalemate that

of

the

return

us

picture.

abundant

to

out

from

occur.

avoided

inflated

unemployment

failures,

current

result

the

immune

Morgan Stanley Offers

their own,.prices must sooner

or

real estate field that would render

it would bring on

distress.

But

from

$71 billion in 1939 to $161 billion
last year. Average weekly earn¬

that

abrupt

the

prefers to

cold-water tenement

run-down

in

re¬
see

it

Is

considerable part of the present
demand for
housing disappear.

public

Prices

if we could indulge in
thinking ihen we should

wish

estate

right

housing shortage can¬
not be measured solely in physi¬
cal terms. It is affected also by

a

all

quar¬

the

ability to

that

say

wishful

to

Return

Abrupt

No

Pre-war

State of

own

our

living

are

ra-

But

un¬

a

would

year.

a

since 1933 has the number of

1940

should

employment and depression
turn, then certainly, we would

on

It

Parenthetically I should like to

safe

materially;

In short, there is nothing in the

ask

France after the last

in

case

have

causes

to

Wants

less

fall

come

Last?

It

have

we

1925. The period
of
the
thirties was one of retrogression

igh-

continues

to buy houses.

of

lasting are
inflationary forces likely to
Is it to be expected that the

be?

year

ancl

had

Should the level of national in¬

Effect of

This
contrasted with a peak construc¬
tion of 900,000 new houses in the

:on-

them

of

doubling the

shortage of housing. This
shortage had been accumulating
throughout the entire decade of
the 1930's. During that period we
built an average of only 273,000

:on-

the money

wanted

and

few

will

actual

in

houses

too

will be permanent — that it will
involve a permanent loss in the

thought is correct, let us turn

new

Little
prices

but

People

far

with

The first

needed

them.

a

have

would

devoutly that nothing of this sort

Before trying to decide whether
■either or neither of these schools

an

still

houses

it

post-war inflation in this country

Basic Causes of Real Estate Boom

to

reproduce

what

have boomed.

inflation

causes

estate

to

it possible for the automobile in¬
dustry to produce a better car at

will last forever.

of

payment.

real

the market at

on

of

cost

all

of

a

are

it will

of

means

begging

fraction

when homes

years

particularly in the high
field, went begging at a
fraction
of
reproduction
cost.
When demand fails, reproduction
cost means nothing.
But let us suppose that demand

post-war depression.
Here again all of us must hope

it may seem, we have

estate

the

wonder

went

recent

sorts,
price

general

probable duration of the current

six

universally - needed
commodity,
housing, plus a super-abundance

yet

it

real estate and that the lessons of

real

acute

housing;

of

know that houses of all kinds

we

these

of

thought

ex¬

inflationary condi¬
shortage of a

an

an

—

perfect

an

ourselves is this: How

past history do not apply. In gen■eral there seem to be two schools
of

of

here the

shortage

also

was

of

experts today who

we

mar¬

recall that in

can

there

these must remind

sort

us

has,

Thirties

is, I believe, a fallacy. Real
estate prices, as I have already
pointed out, are not governed by
costs of reproduction. All of us
know of innumerable examples in

and high wages
the way. Since
1920 technological skill has made

thing that hap¬
pened in Revolutionary France or
post-war Germany — the classic
examples of inflation.
They re¬
mind us, too, of the sort of thing
that happened in the stock mar¬
ket in 1929.
Something else that
reminds

forces

of

housing. We

actual

All

explosive force.

have

ample

day at

Stories like
us

We

bought and sold in the
a rise of 100%.

was

same

concentration

It

people have the income and the
savings to demand more and bet¬

with the old folks. Now the
young
men
have come home. Most of

and

construction of lower cost homes?

all

appurtenant

coupons

said Notice of Redemption,
office

of

Central

Hanover

required

by

at the aforesaid
and Trust)

Bank

Company, with which, as Trustee as afore¬
said, funds sufficient for such payment have
been

deposited.
GULF

STATES'

UTILITIES COMPANY

By R. S. NELSON, President.
Dated

June

26,

1946.

3510

THE COMMERCIAL & FINANCIAL CHRONICLE

the Case bill to become law.

Tomorrow's

in income statements.

fact

if

you

bullish

were

could get all kinds of rea¬
sons
why you should continue
ta stay bullish and the little
you

Markets
Walter

tion is bound to be reflected

In

flies

in

that reflection

When

Says—

Economic

along I
won't be surprised.
I intend
to recommend buying then.

and Economic Morals
(Continued from first P£ge)

the

advised

readers

to

take

*

*

ad¬

*

\

The

first

of

facts is that

the

economic

two

far from hav¬

we are

A few weeks ago I implied in durable goods which accumu¬
vantage of whatever strength
there was by
that if mechanics permitted lated during the long national
getting out.
Market now down more than
defense and war period. We have
the time was ripe for short
10 points from level at which
houses to build, house furnish¬
I was fully aware that cash
selling. If anybody went short ings to supply, automobiles to
selling was advised. See some was
cheap and stocks might I suggest that they note that produce and factories to re-equip
support just under 200 but
go higher.
I even said that I the averages are now down to and modernize. We have consid¬
not enough to go long.
erable amounts of public works
didn't expect to get the
top the early April support point. the
construction of which was de¬
Remember how that one
eighth and used an old Wall This doesn't mean that a solid ferred
during the war period.
word "inflation" was going to Street
cliche, "Bulls can make base is forming. But it does Finally there is an indefinite
change everything; how it money; bears can make mean that a warning has been amount of foreign demand for our

would take

stock

a

selling at

10 and boot it up to 30 or 50,
or even 100?
Well, that was

last week, and the week be¬
fore.
Today, there are some

pigs can't," to illus¬ posted.
my point.
I don't know

goods—a demand limited only by
our
willingness to lend or give

money;
trate

how

*

*

*

foreigners the

Where new buying is con¬
readers followed
my advice and frankly.I don't cerned I still see no reason to
many

care.
I still get paid.
hop in.
Maybe before the
*
*
Maybe there is some¬
next column is written it will
thing wrong with the market?
Well, all through May and be time. I will, however, have
Maybe the mysterious "they" June the averages didn't bet¬ to see much more positive ac¬
who
are
responsible for ter the 210 figure by much. tion than I have seen up to
everything you guessed On May 29 they managed to now.
wrong about, are doing some cross 212, but that was all.
More next Thursday.
*
❖
*
selling? Maybe this; maybe
—Walter Whyte
that.
You
can
The rails, however, man¬
get ulcers
[The views expressed in this
worrying about what these aged to get through to new article do not necessarily at any
omnipotent "they" are doing highs and enthusiasm started time coincide with those of the
Chronicle.
They are presented as
and still lose
money.
again. In commenting on the those of the author only.]
*

doubts.

*

Last
umn

week

210,

were

and

servative
a

when

the

col¬

indus¬

selling at about

the

so-called

con¬

spite the confirmation of
average
indicate

the

Of

couched

were

gant phrases.

They

ele¬

pointed

a

new

In
saw

❖

#

the past few
days you
the market dwindle down

to under 200 and the cries of

that business indications

out

major

that before

period

war

pne

the

ties,

during

created

we

stuff whicn

or

outside

currency

plus

economic
and

demand

of

mercial

banks.

The

pa¬

banks

deposit

liabili¬

promises to pay of the

or

a

call

we

It consists of coin and

money.

com¬

is

latter

the

major part of it. Many people do
realize

not

have

it

but

since

multiplied

this

multiplied

the

six

money

it

three

1933

we

supply

times.

1939. The result is

You
that

We

of

have

times

since

pile of paper

a

Benguet Consol. Mug.

understand,

by

first

offering was made June
by Allen & Co., as sole under¬

writer, of 702,302 shares of capi¬
tal stock of

course,

printing

ment bonds and then

Public

of

have expanded the money

supply

Stock at $3 Per Share
21

all

we

with

*

second

is

great

one

bull market.

course

in

of

start

The

per

govern¬

lodging them

the commercial

banks.

The

acquirement of such bonds by the
commercial
the

banks

creation

is

matched

by
promises to

of bank

that

is,
deposits — which
promises
we
transfer
to
each
other as money, but against which
pay

—

Benguet Consolidated
anguish started rising. Some
Mining Co., Philippine Islands.
there are not equivalent goods for
good and that for the of the choice explanations had The stock
was
priced at $3 per
long pull everything would something to do with the share. The offering does not rep¬ exchange, present or prospective.
be just lovely.
resent new financing by the com¬
OPA and price control.
Abnormal Boom
Any¬

were

*

*

*

the

shares

body who can read knew
Me, I don't know anything very well that price control
about
the
long pull and was over. It was just a ques¬

offered being
holdings of Allen &
Co., who will retain 534,967 shares

whether it will be

Benguet Consolidated was or¬
ganized in 1903 under the laws of

lovely

or

tion of time. Others blamed

not. All I know is that weeks

pending buyer's strike.

when the averages first
crossed 210, I saw
something

so

ago

rotten and it wasn't

in Den¬

mark. At that time there
a

lot

of

explanations

were

about

strikes and then the failure of

99 WALL STREET

NEW YORK 5, N. Y.

And

it went.
*

I

have

*

*

repeatedly

don't know the

said

reasons

I

why

the market goes down or
why
it goes up.
I have also said
I'm not concerned with rea¬
I

sons.

LAMBORN & CO,

a

prefer profits to ex¬
planations. The market in its
own

way had said there was
trouble
ahead.
That
was

enough for
and

The "whys"

me.

"wherefores" I

leave

to

of

the

investment.

for

❖

*

the

Philippine Islands, and was
engaged at the time of the Jap¬
anese invasion, principally in the
business of mining and milling
gold ore in the Philippines. Ben¬
guet was the second largest gold
producer

under

It had

Flag.

I do know that

getting

we

production.

not

are

I

also

know that this lack of produc¬
DIgby 4-2727

American

the

unbroken divi¬
dend record from 1916 up to and
an

including the third quarter of
1941, during which period the
company distributed in excess of
$36,000,000 in cash dividends, in
addition to
11,000,000 shares in
stock dividends. Their largest cash
distribution was $5,100,000 in 1939,
plus 100% stock dividend.
Sole

of

consists

of

12,000,-

shares.

000

>>;

It is also engaged in the mining
chrome
under
an
operating

contract with Consolidated

the United States began in

Established

18S6

H. Hentz & Co.

Securities
Orders Executed

Members

on

York

Stock

New

York

Curb

Exchange
Exchange

Cotton

Exchange

York

Commodity
Chicago
New

Exchange,
Board

of

Inc.
Trad*

Orleans Cotton Exchange
And

other

N. Y. Cotton

Exchanges

Pacific Coast Exchanges

and

Exchange Bldg.

DETROIT

PITTSBURGH

GENEVA, SWITZERLAND




are

mining

no

conducted

Members
New

York Stock Exchange
New York Curb Exchange (Associate)

now

in

progress.

employed. The
that

it

cash

a

Teletype NY 1-928

Private Wires to Principal Offices
San Francisco

Monterey

—

—

Santa

Oakland
Fresno

—

Barbara

Sacramento

has

on

tion.

New York 5, N. Y.

COrtlandt 7-4150

con¬

invasion,

in which
engaged,
During the

normal operations of these

the
14 Wall Street

March,
to

operations have been
since December, 1941,

approximately

Schwabacher & Co.

scheduled

but rehabilitation work,
more than 1,000 men are

By

Chicago Board of Trade

NEW YORK 4, N. Y.
CHICAGO

1946,

tinue monthly.
Due to the Japanese

is

New

New

Mines,

Inc., whose properties contain the
largest known deposits of refrac¬

tory chrome ore in the world.
Shipment from these properties to

Pacific Coast

But in

the

of

ence

10,000

for

reason

of its

expects

company

substantial

than
its

sum

wete

men

estimates

company

more

hand

mines,

sufficient
rehabilita¬

war

to

losses,

recover

under the Phil¬

ippine War Damage Bill recently
signed by President Truman.
claim

will

000,000.

be

in

excess

of

Its

$10,-

factors

high-level
prices
sort,

of

is

alysts

constitute

which

and

abnormal

the

uisual

the

period

a

production
an

is

This

of
big demand for

goods,
of

out

the pres¬

supply

excess

the

plus

money,

meantime

that

accustomed

canitalization

others.

SUGAR
Exports—Imports—Futures

pany;

part

remember
for

is

of

rising
boom

or

expectation.

trufihat
with va&m

business

so

I

talk

an¬

from

time

to

it

much^"fhey turn, as we
do, to considering the extent

time

not

to

which

-

period of
affected
the

fffixerwise expected
high^foduction may be

by what

of

some

call

us

framework factors—that

the direct

by

goods which has accumulated
demand for goods that
people
about, like those they have

a

owned

lieve

previously, that they be¬

are

that

is,

ijaxfirect compulsions
government- incorporated in
or

public policy. Secondly, they

con¬

sider

whether--: the
prospective
boom, supposirf^ we have it, can
be perpetuated. Finally, they con¬
sider, supposing* the boom must
end, what kind of a world we will

ent

characterized
demand.

determinable

"sure

a

thing"
example,

not, for

can

produce.
remem¬

ber that to meet this demand it
is
not necessary to invest

over-large

of

in
The

money

tools

new

facilities

of
for

producing the wanted goods are
mostly in existence despite need
for renovation and
modernization.

This is

that

important because it

the

production

goods is cut free in
sure

of

means

wanted

certain

a

mea¬

frpm the effects of direct

and
indirect profit restriction
by Gov¬
ernment.
It is perfectly true

that
people do not invest their money
in production facilities
except in
the expectation of making a prof¬
it.
But once they have turned
their money into bricks and mor¬
tar

they have irrevocably given a
hostage to the future and must
then face the fact that

only

but it is also

economy,

avoid-a-loss

an

This

nomy.

is not

ours

make-a-profit

a

that

means

eco¬

even

though
profits
are
small
or
absent, exisiting production facilivties must, in order to minimize
losses, be operated to whatever
extent

customers

will

Per¬
point by
remarking that, again in industry,
I hear no talk of stopping produc¬
tion in general because profits are
unsatisfactory.
It is quite true
that preference
is competitively
required to be given to producing

haps I

illustrate

can

buy.

my

those items where the most profit,
or least loss, is to be experienced.
But

production, within existing
capacities, will go forward, I am

will
depreciating
money, and as long as the act of
producing means that the loss will
sure,

from

customers

as

with

even

less

be

long

as

buy,

than

the

resulting

loss

closing down.

In that respect I doubt

authorities

who

nipulating
squeeze
as

may

have

notable

a

that the

been

ma¬

price- wage

of profits, aside from such
have subversive intent,

will

pursue
the squeeze to the
point where there is greater loss

in operating than in closing down.
I conclude, therefore, that since

the

demand

is

accustomed

for

goods, since the facilities for pro¬

ducing

them

are

istence,
ficially

and

since

almost

exclusively

as

do

Secondly, it is well to

a

consideration

I

nearly anything they

in ex¬
have arti¬

already
we

multiplied

supply,

work

and

find people in
industry who have
much doubt of their
ability to sell

find ourselves in then. This last is

from

them

to

necessary

they know they want and
they can afford. The pres¬
big demand can almost be

think

fight about

the

We should

know

very

must

forward.

first, that the demand

production.

Money Supply
factor

that, there are good
believing that produc¬

for

tion will go

sums

claims against non-existent goods.

by the other, it didn't

forecasts called for

rise to about 230.

these

rail action I warned that de¬

written the

was

trials

*

to pay for

money

them.

the

Aside from
reasons

Backlogs

ing made good the great shortages

=By WALTER WHYTE=

1946

Prospects

comes

ointment, like Meanwhile I intend to sit pat
strikes, etc., were just tem¬ and let the others worry
porary affairs.
In any case I about what to do next.

WTiyte

Thursday, June 27,

our
money
fairly sure to have

we are

period

substantial,

of

even

factors alone.

of

the

frame¬

boom, production.
Timing

One could beaver-optimistic in

holding

that

nothing could pre¬
vent us from hiving a period of
high production* But we have al¬
ready seen strike interruption of
production
in y proportions
ap¬
proximating civil revolution. The
long apathy of the public has
meant,
first, that these strike
stoppages
of ^production
have
been

the

socigUy permissible and

regularly

practiced

prelude

to

governmental"

appeasement
o f
demands. To labor leaders

strike

prevention
lof
production
strikes to the? injury of the
nocent

the

became

heartless,
wanted

rivalries.

to

way

in

"the
In

in¬

if
they

proven,

get what

course

recent

by

of

their

weeks,

this

apathy and these conditions may
have experienced the
beginning
of

a

reversal.

But

until

we

are

sure, we musfenot dismiss the pos¬

sibility of more or less continuous
strike-prevention of production.

The

the

Boom

question which na¬
turally arises is whether such a
boom is likely
to continue for¬
ever.
The boom we are entering
is,

next

in

essentially

opinion,

my

a

record
history is universal and uni¬

paper money

of

form

that

those

of

sorts

booms

to an end. The rec¬
is also substantially uniform

always
ord

boom and the

come

indicating that the longer the

in

boom is fed its paper money
the
more
serious
is
the

sequent

diet,
sub¬

indigestion.

economic

That any such boom must sooner
or later collapse is also to be con¬
cluded from close reasoning
its

technical

which

We

do

we

time.

nature,
not

about

do
^have the

but,., to

now

\

.

next, then, to th& more
difficult question of just when the
prospective boom will come to^an
end.
To me the most fundamen¬
come

tally valid

answer

is that it

will

Number 4502

Volume 163

THE

COMMERCIAL

end when expansion
supply of money in use
has been terminated, for that has
been the manner in which previ¬
ous booms
have eventually met

have been to have sadly and seri¬
ously undermined the incentive to
invest in new or expanded enter¬

But that again is
no
answer
because we do not
know when the monetary infla¬

duction for market that
new, self-

to be terminated, or how
much of previous monetary infla¬

ly and exactly what

to an

come

the

of

their Waterloo.

tion is

tion is yet to find its delayed

The

pression.

these

know

reason

things

is,

ex¬

do not

we

to

put

accurately,
that
money in America has largely be¬
come
the plaything of politics.
We long ago cut loose from gold
and made

it

crime

a

established

have

it

is

only

and

new

by

invest¬

expanding

sustaining, productive jobs
created.
to

These latter

pro¬

can

be

precise¬

are

going

we are

need

desperately as our work¬
ers finish
making good the short¬
ages in customary goods.
New

self-sustaining jobs

only from
ment.

When

invests

his

John

some

to

money

store there is a

corner

come

productive invest¬

new

Jones

build

clerk¬

new

ing

money.

thenceforth to fill. By the produc¬
tive investment of money the en¬

other

no

job

for

John

some

Smith

non-political base for

vironment is created in which peo¬

on

ple

or check up¬
stability in the money supply.

We

have,
price,

wage,

through

moreover,

production,

ration,

issued, is to be

connection

em¬

themselves

to

be

to

perpetuation

interest

rates.

squirm and try to wrig¬

gle out of it
the

but in

is

seem

artificially low

We may

it

fiscal and monetary
to
have dedi¬

our

authorities

much

as

end

inevitable

as

we

can

face

must

we

conclusion

continuing
one
will, there

as

self-sustaining job.
jobs are becoming more
new

than

the

that

the

shortages

as

because

incen¬

present for employ¬
minimise the number of

to

ers

is

also

now

workers they hire.
continuous

service.

Next

it

should

with

even

balance

turers to

nevertheless,
war
savings

budget

huge

in

quantity
bearing

low

interest

are

cashable

bonds

that

outstanding,

bonds

attractively
These

noted

is

a

it.

use

of

un¬

rates.
the

at

holder's option. If they are cashed
of the

one

that

the

is

reasons

interest

likely to be

rate

factory to the holders.
in

maintaining

unsatis¬

is

Therefore,

artificially low

an

interest rate, expediency may dic¬
tate that the refinancing be part¬

ly accomplished by putting addi¬
tional

bonds

banks.

This

commercial

We must

face

easy

the

grim fact that
policy

money

and

"print-the-money" policy
sentially the
These

same

several

a

es¬

are

thing.
factors

suggest

supply in use may
than American

further

precedent

away

would

borrowed

on

saving

should

economic

to

quality of
goods with less labor.
But with
labor once freed, that labor must
become
chronically
unemployed
unless
there is job-creating in¬
vestment
to
match
the
jobisting

quantity

and

diminishing investment.
The second

reason

indicate.

More¬

this concept finds fortifica¬
tion in political reliance on the

over,

why the de¬

could be

pronounced and prolong¬
having entered that de¬
pression in a period of artificially
ed is that

interest

and

can

be

on

to

so

there

of

costs

terest

rates

possibility of further
rates to reduce in¬
long-time projects
stimulate their initi¬

if any

lowering

We will have shot our bolt

ation.

aggravate

instead

boom

a

of

sion.

third

The

reason

pression may
in the

found

of

America. Thus

previously noted-basis for expect¬
ing large scale production for a
while.
Group thinking is nearly
always short-sighted.
Hence any

cost

popular

something
promptly about the root cause of

and

our

monetary difficulties must be

most

undermined
by
the
probability
that at least for a little while

wise
stead

everybody will

to be happy.

around

to

policy makers to
they wish and
regardless of the grief they may

duction

and

be

de¬

is about
costs
in

which
of
all

cost,

wage

why the

be serious is to be
unparalleled rigidity

three-quarters

as

demand recedes

reduced

This enables
proceed

our

as

the

for the
deluge"

a

political

up

me

practiced

as

and the fact

eration

seem

about

building

"After

do

to

urge

has

future.
is still
axiom;

that the future gen¬
done

never

anything

depression it is almost cer¬
tain that organized labor will bit¬
in

the

reduction in wage
to
permit prices to shrink
profits to stimulate at the
times when these will be
needed to offset the other¬
shrinking volume.
So, in¬
resist

terly

very

a

balanced

of

reductions

all

what
past generations.

got from

repay

we

But

supposing

we

do

a

cious,

self-stimulating

deflation

spirals

of

likely to be less
the ..forthcoming de¬

are

using

to

serious.

is

situation?

that

The

it

can

My

own

be

very

basic reasoning

be¬
neither

hind, such an attitude is
difficult nor lengthy. Thus if we
go
through
the
reconstruction
Period

with

a

in

continuous squeeze

on

profits; if, in addition, we keep
taxation of income from invest¬

ment

steeply progressive; then we
still will not, as I have pointed
°ut, too greatly interfere with the
back-log production of customary goods with existing facilities.
But what we will have done will




sell
not

people

will

our

in

a

unable

competitive

liquidity.

This,

about

only

the

be

sequence of

by

for

race

the

is

way,

meritorious
fiscal and

our

to

con¬

mone¬

tary policy that I have been able
to detect.
Well

natural

question

is,

of

can

duty,
it
is obviously to keep

to me,

ourselves

much

as

the

possible

developments
for

own

stances.

of

and

store

to shape
policies
to

is

circum¬

cold-blooded

a

that

is

present

ever

constitutes

intelligent

large

a

management

industrial

statemanship.
is, however, another side

There
of the

matter for which

responsibility not
to

our

to

each

other.

but

This

citizens

as

leads

consideration

framework

factors

to

me

of

the

I

have

which

thus far touched upon but
I think those factors will

lightly.
deter¬

mine the kind of country in which
we
and
our
children
will
live
out our lives.
*

*

Crisis

think

I

in

Economic
and

more

concluding

are

have
crisis

but

there is
tural

a

that

of

and

we

economic

this

underlying

That crisis

ideas

fundamental

tween

that

only

deeper, moral and cul¬

crisis.

realm

people

more

not

political

a

Morals

in

is

the

of

ideologies,

or

social

It

and

is

a

even

war

be¬

desir¬
able ways for people to live to¬
gether under government, and of
the relationships of the governed
to their government.
We have
need

conerning

concepts

reestablish

to

the principles

is

it

to

pay

Instead

retained by the

their stocks the
extinguished by
down the bank

the

money

can

be

seller of the stock

spend if he wishes. This is in
contrast to the 1929-32

marked

situation where a record-breaking

liquidation of bank credit meant
that
people were extinguishing
their money by -using it to pay
down bank loans that washed out
of
existence
the
corresponding
deposits

we

balance

there

shutting
market
and

use

money.

resulted

a

of money return to
the purchase of goods

off
in

services.

our

demand

much

deposits is based

and get it.
when the addi¬

across

come

life

if

are

we

For those who
of

the wisdom

doubt

spending

social or
say that in
the outcome of
will depend the

time, on
moral faiths I can only
judgment

my

on

the battle of ideas

future material

well being of our

The outcome has more to
time real income

people.

do with the long

of

of

all

if

us,

savagely mercenary

anything

of

else

wish to be
about it, than
which I am

you

of walking across the room to get
it.
But put the bowl on the table

beside

will

you—you

the

diminished

find

you

may even

keep at it until

counter

will eat

of

You

more.

you en¬

abdominal pain deter¬
law
rooted
in

an

rent!

that

exertion

getting it

A

basic

biology is that men seek to ex¬
ploit their environment to satisfy
their

with

wants

the

minimum

exertion.
But
each

Economic
I

guess

of

fact

that

his fellowmen

man

the

grim

a

environment

American

survival

to

are

part

be

ex¬

to

upon

of

all

rests

Next

we

variation

species
racial

note that there is

may

the characteristics of

in

another

—

survival

This

means,

that

requisite

rooted

in

of

endeavor

and

equally

Framework

rests.

have

power

for

lust

greater

worth

or,

sketch

me

as

of

the intel¬

battle.

is born

capacities for pain or plea¬
and for their anticipations

fear

In

hope.

and

non-

a

religious sense he and his survival
on
earth are completely control¬

the functioning of these
innate
capacities.
His hungers,
for
example, drive him to ex¬
ploit his environment in satisfac¬
tion of his needs, without which
he must perish; but he is selflimited, and so self-preserved, in
doing this by pain he may en¬
led

by

counter

dislike

and

over-exertion.

of mounting,

Each

one

of

us

carries within himself what econ¬
call

a

demand

curve

they can
hope
and

to

respect

reap¬

bitterly

employ its
fear
with

post mortem
their mortal

status to

coercions.

Institutions for Freedom
For

seventeen

the

of

after

centuries

Christ western culture sought in¬
of

means

implementing

revolutionary

concept of in¬
The implementa¬

dividual worth.
tion

but slowly evolved. It
gradually
discovered
that
implementation was to be

was

was

basic

in

practicing and enforcing

the Golden Rule, but stated in the
form

of

double

a

negative.

It

found that to give dignity and

was

liberty to each individual it

was

life affording them the maximum

first

him

satisfaction

from coercion—that

for

Such

ertion.

as

the

way

minimum

ex¬

exploitation in his¬
the range from

tory has covered

is, injury and
predation—by others. "Do not do
others

to

what

ment which

Nature of

But

what

of

another

Coercion

does

havior is ruled

stitutional

power

really consist?

over

Since

be¬

by pain and plea¬

by fear and hope, power to
another ultimately comes

sure,

to

capacity

introduce

to

pain and deprivation into the in
it

no

ultimately

person can

another

coerce

is this

without

take

to hurt and to

power

paying

that

is

sought by those who would rule;
when

they

rulers.

In

they

it

get

short, they

There

The modern

coercive

ultimate

all

"teaches

mankind

that cruel

extent

Long

of

are,

the

to

died

these

were

only

barian

regimes

the

by

bar¬

which

with

of

instruments

in

warring.

organizing

person
one

all

to

disarms

coercion

For example, you cannot

of

government, and you are

prevented from doing it too hard

to

power

superior

government's

the

by

possesses

coerce.

Government

the monopoly of coer¬

cion; government and compulsion
are

of

the

Granted

in

variation
then

that

biological

law

the

most

on

few with

normal

earth is

one

strong

The

weak.

the

thus

power—is

in

present

every

society whether it be bar¬

barian and totalitarian

or

whether

of
it

civilized. But

Christian and

distinction

tremendous

the

societies

two

fundamental

it

as

is

too

be¬

is

as

dimly

perceived by too many. That dis¬
tinction

which

lies

shall

history.

in

ern

or

It

order

also

be

societies

normal

is

purposes

for

earth

some

and

in

people; but it

those

continued

power;

all the

is not only to main¬

secure

the

armed

on

between

to

to

employed. One

illustrated by

is

purpose

tain

the

in

government's monopoly of

coercion

order

follows, as night follows day,

society
-a

Society

characteristics,

the

prevent

despoiling

spoil
Normal

to

government

be

course,

monopoly of coercion—the police

the

philosophically identical.
The

another and

coerce

thus to be free, then there

are

from

property, that is, if

or

is

tween

the

spank your child except by toler¬
ance

Distinction

is to harm another in

one

his

the

deprives all others of similar

and

was

we

Government Monopoly

A

Government

its

Christ

as

Fundamental

no

it be
have recently been

but

him

consider

spiritual father.

The

ordered

reintroduced

our

written,

philosophical father
its

Locke

before

years
was

people

many

ought

one

life, health,

possessions."

or

seventy

ingenuity could

abolished in civilized society

be

will

no

independent,

liberty

days the

death

ago

who

for the

names

powers

painful

which

and

coercion

of

it

this:

like

reason

being all equal

list included torture and the pro¬

longing

phrased

words

inner

govern¬

are

earlier

finally
in

law
an

is

but consult it that,

the

are

"fine," imprisonment" and
In

proved capable of in¬

Locke

moral

If
ment.

not want

implementation.

Constitution

thing whatsoever.
It

John
as

compel him to do any¬

or

do

you

to harm another in his

Without

environment.

dividual's

protect

to

necessary

them to do to you," was the state¬

petty graft to human slavery.

and

supply curve.
Our appetites
and hopes are the demand, our
a

in¬

doctrine until

unless

reinforce

to

regimes must

religious

their

power.

Man, we all understand,

of

understand too

we can

those

found

call it, in¬

we

quickest way to de¬

it the

lectual

as

why

have greater capacity to
organize that power.
As rulers they can live by coercively exploiting the endeavors of
and

fellowmen

doctrine

resist the Christian

stitutional

their fellowmen and

over

may per¬

dictatorships

And

His

equally
secure

we

equally natural it was for the to¬

must

which racial

Let

pict the sharp lines

with

the

But

this, in turn, means that in any
community there will always be
who

depriva¬

dividual worth and personal free¬
dom.
We can understand how

dif¬

have

desires.

or

of

revolutionary—and how abnormal

everyone

ambitions

as

their

by

biology.

knows,
people have dif¬
ferent capacities for this or that
ferent

labor

to

threat

under

With this in mind

different

as

and

commanded

haps understand how radical and

and

sources.

biology;

tion, pain and death.

pear.

liberty and freedom, is
in conflict with biological law. I

sure

think

to
are

talitarian

though ultimate
exclusively
exploitation of natural re¬

survival

dividual
think

is

they
rulers

ploited for survival and satisfac¬

briefly why the idea of indepen¬
dent

life

tion of want, even

"execution."

the beginning of the
experiment started with

and

to
be
dragged back; it is the
society in wnich most babies are
soon
taught—the new word
is
"indoctrinated"—that their lot in

too—was

is

it

course,

Evolution of Our Abnormal

mo¬

through
it they rule and exploit the rest.
Casual
inspection
of
history
reveals this to be the typical and
natural form of society, from the
nomad chief, through the "divine"
king to the modern dictator. It is
coercion

no

aware.

this

successors

of

nopoly

it is the form to which others tend

down

of

and

the form that conforms to

piece and the satisfaction
gives are not worth the effort

American

way

have secured unto them¬

so

it

coerce

either to preserve it or to abandon
it with knowledge of what we do.

to do

selves

tional

underlying the wholly abnormal
but
extraordinarily
successful

omists

Next it is to be noted that
of

On

major,

Each time you want a

walk

you

some

The

yourself

on

bowl of candy across

A time will

have

we

businessmen

as

employers

brief

a

we

have

we

This

indeed

part

in

envisioned

proposition
and

lie

company

the

meet

as

probable

or

which

Then

us.

our

aware

this

prove
a

room.

with

the

what is to be done about all this.
As
business
men
our
seems

the

piece

laws of biology upon

boom for a while, and then that
boom comes to an end: What then
be

engage

will

production and mounting
unemployment.
On the other hand, certain vi¬

loans.

thought

likely to be less
previous occa¬

on

Banks

to

money

have

is

than

sions.

can

revolutionary doctrine for it is
in conflict with the
established

as

After the Boom

evident

You

by setting

employment as pos¬

pro¬

that

ever

the exertion to supply it.

sible, we are almost surely going
to take our licking in the form of

much

evident

can

me

devise.

as

pression than in past depressions.
Our stock market, for example, is
on a cash basis.
This means that

we

to

means

maximum satisfaction in terms of

Christ, who taught the indepen¬
dent
worth of
each individual.
That must have been a strange and

sustain

for

us too often obscures the fact
that it is only to future generations

appearance

religious faiths.

pression into which we may fall

low

This

a general and
self-energizing
vicious spiral of bank credit dis¬

3511]

exertions the cost of supplying it.
They will balance at the point of

that

We cannot produce more and

better goods unless by increased
efficiency we can produce an ex¬

to

great quantity.

prog¬

saving it to ameliorate a depres¬

that the termination of expansion
in the money
be

prerequisite

little

will, of course, fur¬
multiply the money supply.

ther

an

into

rates

be condemned because it is

never

ress:

be

federal

a

there

to

Interest

thus inviting manufac¬
replace labor with labor-

low,

are

Thus labor is

costly and undependable for

very

The banks are stuck with
the bonds and cannot sell them in

in old

it

are

Labor

allowed

necessary

up

machinery

are

a

new

tives

saving

or

no

goods;

money.

want to

Yet

made

are

only possible

way to keep money
artificially low is to supply
money
faster than people

is

before. This is not only
old jobs will disappear

rates
new

wage.

ever

because

this

noted that

of

their

cover

other way to create in America

ployed.

cated

the marketable values which will
Ponder

cratic for voluntary and competi¬
tive
decision
as
to
how
the

In

produce

bureau¬

trade, and tax
substantially substituted

once

to work and

go

controls

subsidy,

money,

can

holdings of Government

bonds.

a

citizens

gold for

to possess or use

We

for

Yet

ment in

it

but

harshly

prise.

bank

on

& FINANCIAL CHRONICLE

it is

of

for them to de¬

the

of

buy

who gov¬

exercise

governed

political

support

in

obeisance

from the rest;

it is to rob

Peter to pay Paul; it

is

and destroy opposing

to

attack

of

leadership before it can be organ¬

in which

ized; it is to be employed as those

form

extraordinary capacity

(Continued

on page

3512)

I.

3512

THE COMMERCIAL & FINANCIAL CHRONICLE

of these brief comments. Whether

Economic Prospects
and Economic Morals
who wield it

see

gratification

of

fit

wield it in

to

lust

for

ther

to

fortify

must

often,

tend

people into
war

their

war.

within

lie

position

domination

that

The

rather

tween countries.

War

the

they
their

origins
than
is

the

negative so that free
voluntarily practice it
they desired.
In this society the significant
decision was that the monopoly of
coercion
held
by
government
men

of
be¬
ex¬

should

growth of coercive power.
It is
axiomatic, even in America I may
say, that nearly always the first
put

which

to

the

they
selves

its

to

The

a

opposite

government

possess—if

what I like to call the "voluntary"

entrench

society. The "pay-off" in mount¬
ing material well-being for adopt¬
ing and adhering to this basic
morality has been little short of a
miracle. Why this is true and in¬
deed why it must necessarily be

them¬
to

ex¬

Power feeds upon
law of nature.

employment

of

coercion, in defiance
nature, finally had

society,

where,

in

pur¬

pose

of the laws of

glorious fruition

other

no

govern

exercise and

pand its scope.
power; that is

be used for

than to prevent people from
coercing each other, thus estab¬
lishing among a numerous people

who

they

power

can—is
in

those

could

in the affirmative if

ternal manifestation of the internal

use

double

tne

true

American

however

is

not

difficult

to

compre¬

hend and to demonstrate; but that

incon¬

inquiry, also, is beyond the

scope

abuse,
thinking
being benevolent, and

morals,
sense

and

especially it means that not
government must do these
things except for the purpose of
preventing some from doing them

scale than

same

even

it

to those who were to be the bene¬

understanding
dictate

the

of action; but I think most
Americans would rather be right
course

than be rich.
The

business

the Golden Rule was at least
implemented among men. It was
implemented by enforcing it in

of

lead

to

of

blage

an assem¬

men,

power;

and it is in that lust and still fur¬
domestic

sound in
hard-headed

gruous it may

Constitution

Christian

great

the

embodied

but

biologically

abnormal doctrine by which we in
this country have lived. The rea¬

that it is

son

great document is

a

preventing

of

coercion

coercion

the

to

between

employed
to cancel out coercion. The

—

only

Constitution

hibitions

was

bristles

the

upon

government
balances

with

pro¬

exercise

checks

power;

feeding
upon
power;
terms are placed upon offices so
that people in them can be got
out

of

them

Bill

of

great

before

they become
entrenched.
The

Rights,

like

that

other

moral

document, the Ten
Commandments, is mostly a series
of negatives.
It is primarily a list
of

don'ts.

the

It is

Golden

Rule

stated and enforced in the double

Though

it is

negative
in
of the great con¬

one

history.

When there is superficial demand
ments
well

"positive programs" it is

or

to

remember
the
largely
negative nature of the Ten Com¬

mandments
which

on

is

and

of

the

document

remarkable

our

society

founded.
The

I

Nature

think

of

in

to

Include the

NATIONAL
SECURITY

TRADERS'

ASSOCIATION
CONVENTION
In

SEATTLE
Sept. 17 to 19

all

this

that

statement

the

in

Amer¬

rediscovery of the real

America.

It

is

rediscovery

a

include

must

a

realization

society in which individual

bounds

each

as

coercion

new

which still further coercions

seem

required.

*}•

A

notable

breeding
while

Host




Organization

example of coercion

more

this

prepared:

of Seattle

coercion

statement

Railroad

occurred

was

union

being
power

to

injure the innocent by nation¬
strike was being exercised.
The President asked Congress not
to eliminate that power to injure
at its root but to give him a great¬
wide

er

to

coercive power to draft strikers
labor

he

as

directed

under

military law with its most serious

penalties for disobedience.
Freedom in America

only

that

another

\

Leaks in

Already

the

as

illustrate:

Take

far

briefly

me

price

control

which is in the spotlight. Stripped
of

paraphernalia,

legal

what

it

down to is that the govern¬

comes

ment's power of coercion is dele¬

gated
to

so

his

me

that

one

neighbor,

man

may

say

"You must give
produced for

what you have

less than others would

voluntarily
else you
or deprived of your
property—that is jailed or fined."
This is nothing but a species of
coercive robbery. It is predation
backed by government. It is not
in
the public interest,
because
public interest includes every¬
body's benefit; whereas this is
barefacedly the coercive despolia¬
and

competitively

will

tion

pay or

be hurt

of

the

for

some

is,

incidentally,

ing valuable
power.
Take
form

resources

subsidies

bad

or

any

gift.

government

anything
first

and

government

of

eco¬

man¬

other
Since

cannot

except

takes

that in

granting monopoly

feed upon itself until it
menace, as we have

whole

our

There

is

tween
a

power

came

industrial

structure.'

great difference be¬

no

commodity monopoly

a

to

recently seen,

and

monopoly, except that
the latter more greatly promotes
manpower

its selfish purposes by

with

destroying

give
away
that which it

in

no

his

man

means

must

person

or

not

injure
good

by

demagogic

Since production

prevention
prevention

is

is

argument.

good and its

evil,

the collusive
individuals from

of

competing

in producing as they
individually desire, is there¬

may

fore

one

of the gravest assaults
up¬

the Christian and American civ¬

on

ilization. I do not think it will be

if ever, until the right
(within the con¬

resolved,
to

quit

work

tractual
terms
of
the
employ¬
ment) is distinguished from what

has

to

come

be

regarded

the

as

sacrosanct

right simultaneously to
working without quitting,

stop

and until the latter is reexamined
in the light of basic moral at¬

titudes

towards

coercive

of

cent

the

means

employment

to

hurt

people for personal

inno¬

or

group

gain.

supposed

very

over

with the coercive power of
government. We did not think
up

ment

slipped

from this standard. Let

larger
before. We backed

production, by injuring the inno¬
cent, and by defying the govern¬

Dike

have

we

were

a

Let

give

me

you

Consider

am

through.

basic

proposals of
economic planners. Practically

our

all

the

further

one

illustration and then I

of

them,

finally

so

come

far as I

can

see,

down to having the

government engage in the equiv¬
alent of

printing and distributing
occasions deemed ad¬
visable by the planners; then on

money

other

on

occasions

the

is

monev

to

compulsion from be
taxed back and withheld from
paying, the virtue
circulation or extinguished. Let
freedom
exists
is
utterly
ab¬ of its giving is cancelled out by
us
examine the morals of this.
normal and that eternal vigilance
the sin of robbing. Charity when
is really and truly the price of
They are easy. When money print¬
coupled
with
coercion
is
no
its perpetuation. It is rediscovery
ing is conducted as a private
longer charity. At best it is capit¬
that we live as Christians behind
enterprise we put the counter¬
ulation to Robin Hood romanti¬
a dike of
morality that holds back cism. The Golden Rule cannot be feiter in jail. The reasons are
the beastly and barbarian; that it
simple and they are good. He is
practiced in the affirmative if
is terribly easy and
wholly natur¬ doing it requires its violation in engaging in both deception and
al for a small leak in the dike to
robbery. The morals of it are ob¬
the double negative. Charity must
scured but not changed when the
become a destroying flood. It is
ever be something voluntarily be¬
a
rediscovery which must com¬ stowed beyond the dictates of government does it. Look at the
tax side of it: taxes are what we
prehend the means by which in¬
justice. It should be left to the
dividual freedom can be imple¬
pay the government for conduct¬
voluntary institutions of society
mented and the concept must be
ing certain required services. If
and never coupled with coercion.
held
with
sufficient
clarity to It is the failure of many people of the government takes our money
in taxes but does not deliver the
serve
as
a
yardstick to measure good will to perceive this simple
equivalent in services, then that
those things which promote or un¬ truth which
leads them to endorse
too
is the moral equivalent of
dermine freedom. If we ever lose
so-called social legislation, never
freedom in America it will be by
robbery. No lasting benefit can
realizing they are violating rather
ever
come to our country from
a
series
of
so-called
practical than
subscribing
to
Christian
coupling the coercions of gov¬
measures and power extensions to
faith; and, I fear, still less per¬
ernment with the morality — or
meet
particular
situations
or
ceiving that once they let coercion
rather, immorality — of the rob¬
emergencies as we see them. But loose
for
so-called
benevolent
ber, no matter how closely it be
the word "practical" will have
purposes they risk the loss, per¬
cloaked in the trappings of "dobeen used as a rationalization for
haps forever, of individual free¬
good" benevolence.
abandoning basic principle, in¬ dom on earth.
stead of in its true sense, which
These are but brief illustrations
Take taxation.
Taxation can
means to bring practice into con¬
of the annlications of underlying
only be preserved on a basis of
moral attitudes and social faiths
formity with principle. It will be
voluntary consent when the voice
because we think we can stand a
which, however dimly remote and
in determining the tax imposed
few leaks
in the
dike
without
is proportional to the burden of intangible they may seem, never¬
theless constitute the realest thing
really risking a flood—and will
tax imposed. If everybody has the
then find we have been fooled.
there is about the unique Ameri¬
same vote in
determining the tax,
The key to it all is whether co¬
can society. These moral attitudes
then everybody should be equally
ercion
are our true foundations. We have
by government will be
burdened by the tax voted. This
not been vigilant. We grew up
kept confined to preventing fraud,
was
originally provided in our
predation, coercion and monopoly Constitution. But
taking those foundations for
when, under the
abuse
between
citizens,
or
16th Amendment, majorities vote granted. They have already been
whether it will be let loose for
subjected to considerable erosion.
taxes upon minorities instead of
other seemingly benevolent pur¬
They are in need of reconsidera¬
voluntarily upon themselves we
poses only to grow by leaps and
tion and strengthening if they are
have substituted for taxation
that

creates the conditions to deal with

BOND TRADERS' CLUB

exchange them

to

fit for the fruits of others

sees

nomics because it either prevents
production of else results in wast¬

meaning of individual freedom in
which

Make Your Plans

funnel

can

a

a

fruits of his exertion and

efforts.

It

Freedom

intellectual need

great

ica is for

NORTHWEST

I

to

entitled

is

man

benefit of others. It is bad morals.

America

down

competitive deci¬

each

voluntarily
he

or

the

to

people concerned. It

that

the

to

price

left

be

to

and

of the

in

what

at

ever

voluntary

and

for so-called "constructive" state¬

PACIFIC

is

wage

we
on

whom, ficiaries of its exercise, the coer¬
what cive power would, like all
power,

by

how,

of

power's

permanently

and

amount,

built into it to inhibit

are

produced,

when,

where,

means

structive documents of all

the

be

to

sions

government coercion

form

THIS YEAR IN

is

that it sought throughout to con¬

negative.

VACATION

name, or

fine

men

oly

most

to others. It thus means that what

love

good

(Continued from page 3511)

take property from him,

without his consent; but also and

love money, or whether you

you

Thursday, June 27, 1945

others without

consent

the

of some for

by
despoliation

coercive

the supposed

benefit

of others. We

destroy taxation by
representation of those who pay
the

taxes, to secure which we
fought the Revolutionary War.

For

it

we

substitute

the

tax

ty¬
ranny of those who benefit from
rather

than

pay

permit those
discrimination

the

in
and

taxes.

office,
fiscal

by

We

tax

gerry¬

mandering, to purchase their
perpetuation in office from
short-sighted.

own

the

Take

monopoly abuse. Long ago
we
decided in this country that
monopoly abuse was a form of
coercion.

have

We

decided

we

would

of it, and outlawed it.
But we'have reintroduced monop¬
none

to

endure

and

if

strange

this

society of free and Christian men
is to be maintained. Failing that
we

returning to
anpraisab
minds that in the

must, I believe,

business

cold-blooded
make
next

up

our

decade

there

be

will

oc¬

great strides to be made
America in relapse into the

casion for

by

utterly

normal

and

wholly bar¬

barian type of society with which
we
have recently been warring.
Then
normal

be

everything will be Qulfe.
but I don't think it will

too

In
me

—

happy for most

summary,

that the outlook is for a

of abnormal

is

people.

then, it seems

in

doubt

months

or

to

period

activity. It's duration
it may be week .

—

years.

It

is

in

doubt

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 4502

jVolume 163

the forces at work are
political as distinguished
from what we are accustomed to
think of as economic. Though the
boom's duration is in doubt its
a
ultimate termination is a cer¬
tainty with the further probabil¬
(Continued from page 3471)
ity that the longer the boom is
whereby no element of discrimination, variation or volition
aggravated by monetary inflation is
permitted.
Everything is to be done by "rule of thumb,"
the more serious will be the in¬
evitable
aftermath.
Underlying in accordance with a prescribed procedure.
the
boom,
and dominating its
Passing over previous, and fortunately thus far, futile
aftermath for generations to come
efforts to establish the 5 Per Cent and the "Full
Disclosure"
is
the fundamental question of
whether Americans .think their Philosophies, one has only to point to the most recent "dic¬
because

Should the

Security Dealei
Be
Vending Machine?

largely

society of free men,
abnormal and difficult

voluntary
however

tum" of the

Trading and Exchange Division of the SEC for

evidence

this.

of

The

move

to

require underwriters and
to preserve, is nevertheless worth
dealers to redistribute or sell their
participations to anyone
the effort of understanding it, of
restoring it, and of preserving it. and to prohibit them from withholding from the market for
their own or for
special accounts any securities which are
publicly offered is the latest effort at "handcuffing" indi¬

Extend Exchange Time

Colombia Bonds

on

Holders of Colombian Mortgage

Bank Bonds were notified on June

vidual

action

in

security

trading.

It would deprive the

der the offer of June 25,

which

1942 for

Republic of Colombia 3% External
Sinking Fund Dollar Bonds due
Oct.
1, 1970 has been extended
from July 1, 1946 to July 1, 1948.

the

clude

carried

to

the

extreme,

commer¬

this

move

would make the

of

persuasion

field of

counsel that

or

in¬
Mortgage
20-year
7%

Sinking Fund Gold Bonds, dated
and

1926

1927, due April 1,

1946

and Jan. 15,

1947, and Guaranteed
20-year 6% Sinking Fund Gold
Bonds, issued August 1927 and
April 1928 and due Aug. 1, 1947
and April 15, 1948.
included

"Also

Colombia

of

Bank

are

Sinking
Fund Gold Bonds of 1927 and 1928,
7%

20-year

are

inherent in the general

Bonds of 1927, due Oct. 1, 1947.

applies

The extension offer also
to

the

Mortgage Bank of Bogota
20-year 7% Sinking Fund Gold
Bonds

of

1927,

due May

and

1

Oct.

1, 1947.
The
period

Convertible
External

of

exchange

for

3%

for

Certificates

Dollar
Oct. 1,
1970 in multiples of $500 principal
Fund

Sinking

Bonds of the Republic due
amount

has

also

extended

been

from Jan. 1, 1947 to Jan. 1, 1949.

Copies of the offer
tained

from

The

Bank

of

Trust

be ob¬
National City

Department,

New

may

York,

20

Corporate
Exchange

Place, N. Y.

FR

Corp. Common

Stock Offered at $5.85
A group

of underwriters

headed

by the First Colony Corp. on June
21 offered to the public 175,000
shares of common stock, 50 cents
par

value, of the FR Corp., manu¬
of
Scoop, a
chemical
compounded detergent. The stock
was priced at $5.85 per share.
Of
the total number of shares being
facturer

offered,

150,000

shares

represent

new

financing by the company.
The remaining 25,000 shares are
being offered for the accounts of
oertain selling stockholders.
Proceeds accruing

estimated
Of the net proceeds
plans to spend ap¬
$200,000 for a new

pany from this sale
•at

$733,125.

the

company

proximately
plant

for

to the com¬

the

are

manufacture

of

Scoop.

An equal amount will be
expended for equipment for the
Plant and $100,000 for additional

equipment for the manufacture of

photographic chemicals and

sup¬

plies.

used

The

balance will

be

capital, pri¬
marily employed to finance ad¬
vertising campaigns and purchase
as

additional working

raw materials.

Upon completion of this financ¬
ing, outstanding capitalization of
the company will consist of 400,000
shares
of
common
stock.
There is no funded debt.




trade

are

practices regarded

as a means

insurance, in fact, in all branches of trade, tradition and cus¬
tom prevail, and,
except in rare cases, they have not been
altered

or set aside
by legislation or statute.
It has been
repeatedly stated by teachers and other expounders of the

laws of trade, that "the traders make their

laws," and.

own

where statutes exist,
they are, as in the case of the nego¬
tiable instrument law,

merely the embodiment of custom
developed through the years.
So
at this serious juncture of affairs in our nation's

tradition

why,

attempt,
minor

that have

life, should

a

the basis of

on

abuse

in

bureaucratic agency of government,
mere official whim or a supposedly

business ethics,

tices and traditions of

to revolutionize the prac¬
an essential

established trade and

an

business?

merchandising. In other words, the security dealer
a
robot, or a vending machine.

IV
To

destroy

impair the personal relationship between
security business is, in effect,

or

customers and dealers in the

A transition of this

nature is decidedly
revolutionary. a destruction of this business as it exists today.
The invest¬
businesses, security dealings are of a personal nature. ment banker, the security trader, the broker, and even the
The relationships between customers and dealers are rela¬
ordinary salesman, now operate in an atmosphere of fear.
tively close and confidential, compared with ordinary mer¬ They are handcuffed by rules, regulations, prohibitions, in¬
chandising.
The "good-will" element is present to a large hibitions, philosophies, edicts and inexplicable laws.
In no,
degree, and the "customer" in many cases takes on the char¬ other occupation or avocation are practicioners so encom¬
acter of a client.
The #dealer not only buys and sells, but
passed by as many "thou shall nots."
Every decision they
he renders a personal service to his customers.
And, in this make, every action they take, must be considered not only
connection, he has the moral and legal right to select his in light of reason, tradition or equity, but in accordance

Of all

customers—to

work for wThom he

chooses, and to discrim¬

with the decisions and

regulations of appointed government
constantly seeking to aggrandize their
powers
and magnify their personal importance.
Such
choice, and who power tends to become absolute, and as Lord Acton re¬
services. He is marked "absolute power leads to absolute tyranny." With
not forced to lend to all at the same rate or on the same
this situation, we may expect that in time the security
terms.
And whether he should accept a deposit account or
dealer must be nothing more than a mere automaton.
He
make a loan is a matter of his own discretion.
He is not
may not act on his own best judgment or in a way to culn
bound by "a rule of thumb," and he is not forced to act
tivate the good-will of his customers and build up his
in accordance with a bureaucratic rule or formula.
clientele.
To them, he is fast becoming a mere vending
There was a great hullabaloo a few years ago about the machine—a voiceless and senseless medium of
effecting a
obnoxiousness of "preferred lists" maintained, by "issue sale or a
purchase.
j
houses" and other security distributors.
The occasion for
it was the publication in 1934, as an incident in a Con¬
on July 8, 1946. The
company pro¬

inate among

those with whom he is willing
due April 1,
1947 and April 1,
1948, and Mortgage Bank of Co¬ respect, he is no different from a banker,
lombia 20-year 7% Sinking Fund counts and
grants loans to those of his own
Gold Bonds of 1926 and 1927, due
is not bound to serve all who may seek his
Nov. 1, 1946 and Feb. 1, 1947, and
20-year 6V2% Sinking Fund Gold

So essential

fostering and stabilizing business transactions that they
have the force of law, and this has been
invariably recog¬
nized by the courts of almost
every land.
In banking, in

becomes

II

Agricultural

Guaranteed

Bank

ditions.

an

of

economic

beginning of

If

1

evolutionary process.
They arise to suit a particular environment, and they are
changed or altered when necessary to be adapted to new con¬

cial

The announcement says:

Bonds affected by this offer

proof of this.

Trade practices are the result of

and

security dealer a mere machine,—an inter¬
they may exchange their bonds mediary who has no choice of action, no
opportunity of
and the appurtenant coupons un¬
exercising skill or foresight, on no occasion to use the arts
within

time

the

that

26

handed

and illegal transactions—a far worse evil than
that
which is proposed to be remedied.
One has only to point
to the failure of the Constitutional
Amendment prohibiting
the liquor traffic as

trade of all individual choice and volition which has charac¬
terized free markets ever since the
transactions.

3513

to deal.
In this
who carries ac¬

gressional investigation, of the allotments of Alleghany
Corporation shares by J. P. Morgan & Co. to a number of
individuals, many of whom were clients of the concern and
others participants in previous underwriting ventures of
this house.
Such so-called "preferred lists" had been in
common use in the field of financing for generations,
and
were
the means whereby banking houses and investment
concerns had built
up their clienteles.
They had been used
by the Rothschilds in England.
They constituted a com¬
mon
practice among German banks, and had come into use
in this country after the old practice of opening subscrip¬
tion books to the public for shares of new undertakings had
failed as h means of obtaining needed capital, or had, con¬
trariwise,

|ed to rush for shares that temporarily induced

wild

speculation with a consequent market collapse.
In
times of risiiig prices and booms, many so-called investors
subscribe to new issues of securities merely to ride on the

speculative wave, and accordingly, would offer to sell their
subscription rights when they could make a profit.
They
had no interest in becoming permanent shareholders.
This
was the experience of the subscription to the shares of the
First Bank of the United States in 1792, and it was followed
by other instances of "opening subscription books" to
the public in the organization of canals, banks and railroads,
when required by the laws creating such corporations.
The

later

system had been generally abandoned after the Civil War.
Although there were "public subscriptions" in the orginal charter of the Union Pacific or the Northern Pacific
railroads, this method of distributing the

tically ignored and of no effect.

shares

was prac¬

Jay Cooke, in obtaining

underwriters for the Northern Pacific,

made up his

own

"in¬

side" list.

officials, who

Dillon Reed Offers

Wisconsin El. Power
investment

An

headed

by

Inc.

June

on

trie

trade custom is

a

dangerous action.

It

service.

And what is

perhaps worse,

can

completely de¬

social or economic
it can lead to under¬

stroy or severely handicap a necessary

banking

ered for

The

group

26

and

same

Co.

the

the

Proceeds

mortgage

1976,

due

interest.

accrued

at

The

simul¬

offered

also

group

new

to

bank

old

preferred
surrend-4

not

bonds

and

preferred

issued in fulfillment of

company's

refinancing

from

the

together with

bonds,
the

the

series

exchange.

were

&

series,

2%%

stock

Read

first

Co.

Power

101.56

of

all

4%%

offered

Dillon,

bonds

loan

and

sale

plan*

of

the

$5,000,000
general funds of
a

will be used to re¬
outstanding $55,000,000

company

the

deem

principal

amount

of

first

mort¬

taneously, subject to a subscrip¬
tion and exchange offer tendered

gage

by the company to present stock¬
holders, 260,000 shares of Wiscon¬
sin Electric Power Co. new pre¬
ferred

Upon completion of the financ¬
ing the company's capital obli¬
gations outstanding, in addition to
the securities being offered and

per

the

stock, 3.60% series at $101
share.
Both
issues
were
to Dillion, Read & Co.,
and associates at competitive

bonds, 3V2% series due 1968

105 y4%.

at

$5,000,000 bank loan, will con¬
of 45,000 shares of 6% pre¬
stock, par $100 and 2,668,-*

awarded

sist

Inc.

ferred

bidding

June 24.
company's

on

928

offer,
holders of the presently outstand¬
ing 262,098 shares of preferred
stock 4%% series par $100, are
invited to exchange for the new
serial preferred stock on a share

$4

of

payment

with

basis

share

for

a

share

per

cash

plus

adjustment.
The
offer
also
gives
common
stockholders
the
privilege
of
dividend

cash

a

subscribing for the new preferred
stock at

$101

per.

of l/10th of a
ferred

share at the rate

share of

new

stock held, but

states

that it has
that

than

stock

will

the

93%

of

pre¬

shares

four

each

for

common

the

of

common

stock.

received
of

common

for

any

preferred.
subscription and
exchange offer, which has been
underwritten by Dillon, Read &
The company's

Inc.

and

Alexander Middleton Willi
Alex. Brown & Sons
WASHINGTON, D. C. —Alex.
&
Sons, members New

Brown

York, Baltimore and Washington
Stock Exchanges, announce that
Alexander R.
a

now

Middleton, formerly

Commander U.

Lt.

S.

N.

R., is

associated with them in their

office

in

the

American

Security

Building.

of

com¬

holders

the

not subscribe

shares of the new

Co.,

shares

the

Under

more

attempt at one stroke by a governmental edict to
revolutionize an established business practice or a recognized

idends

public $50,000,000 Wisconsin Elec

assurances

To

per

stock

Bond and Pfd* Stock

call for redemption at
share plus accrued div-

to

poses

$105

pany

III

are

Dominick & Dominick
Adds

Ferguson to Staff

Dominick &

Dominick, 14 Wall

Street, New York City, members
of the New York Stock

Exchange,
Ferguson,
Jr., has become associated with
the firm.
He was formerly with
announce

that Alfred L.

associates, expires Estabrook & Co.

3514

the commercial &

The Atom Is

and Picnic

MILWAUKEE,
Milwaukee

WIS.—The An¬

Bond

Club

will

be

Friday, June 28th at the
North Shore Country Club.
on

Festivities

will

start

at

1

p.

after

vision

91:00

is

Ample

a.m.

being

made

pro¬

for

non-

Individual

1-

First

4

Cup—low

■d'

be:

National

gross—prize

—

Bank

for

one

place.
Team

Championship — PuelichCup—two-man team event—
low
gross—prize for one place
(two prizes).
Team
Championship — Ames,
Emerich
&
Co.
cup—two-man
team—low
net—prize
for
one
place (two prizes).
Special Handicap Event—H. M.
er

:>*

Byllesby & Co. Cup

(1-15 inclu¬

the context of Moscow's accusations of America's "

Altogether revealing and disgraceful, in the blows at the efforts
a compromise modus operandi

between the Baruch and

Gromyko proposals, are the accusations be¬
ing so vituperatively hurled from Pravda. In particularly bad taste,
and wholly unjustified, is Pravda's critical allegation that our bombis

contracted

monopolistic firms such
Company, whose entire prewar outlook was connected
thousand threads to the German I. G. Farbenindustrie." Sim¬
to

out

"private

the DuPont

by

a

ilar

allusions were made by Russia's chief stooge, Dr. Lange of
Poland, here yesterday when he said: "To those, however, who do be¬
lieve that they can profit from the martial use of atomic dnergy for
their

own

and

narrow

word of

warning

lel with

selfish

it

as

sees

fit; unless

well be answered in

per

chance the Kremlin wants to in¬

press:—the DuPont Company undertook
its part in our country's atomic development program at the request
of, and in close collaboration with, our Government; was paid a fee
as

our

ffe
'•■J'

prizes.
Special Guest Events will be
prizes for low gross, low net and
high gross.

Putting—Laas Cup—least

num¬

High

gross

entirely

program

before

*

Champion¬
Cruttenden
Cup

own

*

*

farreaching importance to the whole future existence of

For the Baruch plan and Mr. Gromyko's counter-proposals have

squarely put up to the Big Powers the question whether they are go¬
ing to continue insisting on the interference of unrestrained national

sovereignty with their professed faith in

a

world organization.

It
in

highly doubtful whether Mr. Gromyko
his proposals as an effective means
of world peace.
For they are wholly

seems

advancing

the

cause

impracticable

from

that

through Mr.

cow,

regard—apart

establishment of two regulatory committees; it
being highly significant that the second of which

is to get up an agreement for the outlawing of the
bomb, and to devise a system of sanctions.
Prior

Council by Mr.

situation, as it has been abused in the Security
Gromyko, reflects fighting over this issue which has

since the UN's organizational meetings at Dumbarton
At Dumbarton Oaks Russia wanted the veto to apply

ever

Oaks and Yalta.

of

Australia,

At
under the fighting leadership of Dr.
wanted the veto limited to punitive measures,
powers,

Russia, a "compromise" was worked out ap¬
plying the veto to specific procedural matters, excepting only when
of the Big Five should be a party to the case in question.
This

sanctions, because it is precisely the posses¬
of an effective weapon by a single power,

sion

can effectively prevent warmaking.
What is
needed, contrary to the Russian plea, is a monop¬
oly of decisive power under single control. Under

the

Moscow

compromise

thesis

of

wholly irrespective of blind faith in treaties
pulses.
As

David

partment's
said

E.

Lillienthal, who

report

Tuesday:

the

on

the

such

"Stuck
are

Ex¬

Charles

F.

Jacobson, Jr., of Riley & Co.,
Sanderson MacRury of Mer¬
rill
Lynch,
Pierce,
Fenner
&
and

if

Beane.

i
Lyman J. Rigby, The Marshall
Co., is Chairman of the Horseshoe

Pitching Committee.
Edward D. Levy, Straus & Blosser, is Chairman of the Committee
in

charge of the Bridge Tourna¬
Members of the Baseball
are:

Com¬

Robert W.

Haack, The
Wisconsin
Company, Chairman;
Charles C. Mayhew, Jr., Merrill
Lynch, Pierce, Fenner & Beane;
John W.

1
it

ill

Vermeulen, The Wiscon¬
Company; Earl F. Driscoll,
Paine, Webber, Jackson & Curtis;
sin

and

Gerald

control

sumption

Walter

Braun, Braun, Monroe
Co., is General Chairman of the
outing, and Mert N. Basing, Gard¬
&

that

serious

relinquishment

of

national

our

sovereignty

rights would forestall assent by the Senate. But developments during
these early UN days, ana the obstructing Russian actions,
have
caused

a

decided sWing on the part of American officialdom and

public toward favoring elimination of the veto excepting as applied
to punitive measures.
And

finally, the public has realized that, stripped of all its tech¬
nicalities, the arbitrary usability of the veto not only is a paralyz¬
ing force against the spirit and the action of a world organization,
but affirmatively gives a transgressing nation the legitimatization and
sanctification derived from the great prestige of a "legal" world
The

Russian

theme

reductio ad absurdum

On

Veto

insistence

in atomic affairs.

is

clearly

carried

to

a

For the delicate observation

of

crucially important prohibitions to be agreed on by the various
atom-operating nations, surely must not be broken at will on the
excuses of an arbitrarily and
uncontrolledly exercised veto.

F. Dalton & Co., is Chairman

#

sjs

:h

&

Directly pertinent thereto is the fundamental difference between

Given, Gardner F.

Co.,

and

Arthur

F.

the Russian and United States

Patek, Paine, Webber, Jackson &
Curtis, are Co-chairmen of the

spections within countries.

Prize Committee.

has

Officers of the Club

Iver

are:

Skaar, Harris, Upham
&
Co.,
President; Walter B. Braun,
Braun, Monroe & Co., Vice-Presi¬
dent; and William A. Johnson,
Mason, Moran & Co., SecretaryTreasurer.

spection should

CHICAGO, ILL.—Faroll & Co.,
208 South

La

Salle

Street,

change, will admit Joseph Klein
partnership on July 3.

to




The Soviet insists

that

international in¬

only after a treaty outlawing atomic weapons
However, the American insistence on prompt and
inspection is based on the principle that we should be
come

concerned with prevention—rather than possible

ishment—in

the

period

immediately

ahead,

ex

when

post facto pun¬
the

"have

not"

nations will presumably be busily engaged in developing the bomb.
With the United States presumably ahead of the field in present

achievement, and being willing to give
position assuredly is justified.

away so

much unselfishly, this

the

results

field should

The

unreasonable

Russian

be

in

obtained

this

sci¬

used

only for the benefits
humanity and not for its destruction.
"3.

That the Member
Nations

and

States

should support

Organization in its efforts to

supervise

the

of

use

atomic

energy

for peace.

"4.

That

undertake
for

arms

Members

of

eliminate

to

United

the

atomic

destruction

mass

Nations
other

and

arms

from

their

national

armaments."
And

hope:
and

he

atomic
of

measures

and the relevant
no

with

continued

"With

motives for

adolescent

equally

being

weapons

international

control

outlawed
developed

knowledge being shared by all nations, there will

an

be

atomic armament race."

With even greater professed naivete, both Messrs, Gromyko and
Lange justify the possibility of effectively outlawing the bomb, by
comparing it with other deadly weapons which have been appar¬
ently discarded—such as poison gases and liquids. But surely the

science" of

a

of

means

world that

was

warfare

was

based

not

the "con¬

on

capable of level-bombing of civilians,

and

Lidice and other unprecedented barbaric atrocities.
The discarding of gas and bacteria was motivated by the realization
the perpetrator of

that their

use

would entail equivalent

reprisals, and altogether

would

not be worthwhile.
sis

SH

si!

sis

Viewpoint Will Scuttle

internationally

ing

as

the

Economic

experts

persistent

or

and

Russian

function¬

by
the
viewpoint, it reversed the recommendations of

as

government nationals,

Social

Council.

was

taken last week

Surprisingly, in agreeing to

practically all the temporary commissions for making the permanen.
commissions

at

least

partially

composed

of

individuals

chosen for

their expert capacities.
The Russian delegate, Nikolai Feonov, won
his point that "the- technical delegates are to represent the views or

respective Governments, are to be bound by them and are to
relegate all thoughts of functioning as world citizens to a subsidiary

their

role.
The
American
and
British
viewpoint, among
many
nations', has been that the economic and social fields represent the
rare enough places where national interests can be forsaken for the
world point of view in the true United Nations spirit. National inter¬
ests would be

taken

position in effect strives to obligate

at the

arrangement,

protected at the higher level of the ultimate decisions
table by the 18 member delegates.
Even this
as has been pointed out innumerable times
by tn

Council

writer at San Francisco and here, would present

all

interests.

manufacture, without

ECOSOC

Decisive action in the conflict of UN officials between

the United States to give away or eliminate this most vital weapon,
which it has developed and which it alone possesses, and to disclose

information about its

Dr. Oscar Lange

ot^r

The prevention in advance of the manufacture of atomic weapons,
the one hope of effectiveness, quite logically is the unalterable

basis of the American position. And this implies close,
directed inspection, from the very outset.

mem¬

bers of the New York Stock Ex¬

proposals, namely that relating to in¬

taken effect.

effective

as

Fardll Admits Klein

That

"2.

Decision to Forsake World

The Russian-American Schism Over the Atom

Charles W.

Dalton

between

%

of the entertainment and refresh¬

ments.

exchange

scientific character

a

that of atomic energy.

as

entific

should

States

discarding of such

body.

B.

Athey, Merrill
Lynch, Pierce, Fenner & Beane.

ner

That

the United

entirely for inclusion of
the veto provision in the Charter. Particularly before it was ratified
in San Francisco, our own representatives strongly acted on the as¬

energy,

follows:

as

"1.

of

now

ment.

mittee

taken

And Mr. Gromyko's walkout technique here at Hunter has similarly
constituted a kind of single-nation hindrance of the majority's will

Soviet

atomic

And the proposals advanced by the Polish
Delegation, through
Lange's backing up of the Soviet, at Hunter Tuesday, are sim¬
ilarly unrealistic. Dr. Lange listed measures to be

troops be taken out of the Levant; it has just
vetoed the compromise proposal on Franco; and it got Mr. Lie his job
as Secretary-General by effectively
threatening to veto the majority's
preference for Lester Pearson, Canadian Ambassador to Washington.

It would be unfair to blame the

of

Dr.

regarding the Iran situation.

In
charge of the
change" Committee

1B

French

and

control

realities of human nature."

British

Milwaukee

verbal

bombs,
humanitarian im¬

urge

Allyn & Co., co-chairman.

Commit¬

Secord, The
Company, Chairman,

as

m

seriously that the world rest its hopes for
eliminating the atomic bomb entirely upon making the bomb illegal
—'outlawing it,' as the phrase has it—such a proposition, if sin¬
cerely offered, is, it seems to me, dewy-eyed, naive and ignorant of
"To

each other all discoveries of

Golf

well

or

Chairman of the State De¬

was

international

assisted by Harold H. Emch, A. C.

the

as

Andrei Gromyko

having the knowledge
countries—with the po¬

various

among

tential protection of the veto power—in a war crisis aggression would
be made by the first country able and willing to use the

kind coming before the Security Council.

Francisco, the small

Evatt

abolishing the possibility of subsequent effect¬

ive

twice, and effectively used the threat thereof once—all regarding
peaceful procedural matters. It vetoed the American proposal that

of

W.

are:

sincere

promoting

Gromyko, is pressing for the

Lloyd

Members
tee

of

Mos¬

in

was put through only on the express written,
promises, by the Big Five that they would exercise
the veto privilege "sparingly," with a great sense of responsibility,
and only in very exceptional circumstances.
But in practice the
Soviet has definitely broken these pledges, having used the veto

If

be

can

their

great unfairness to the American position.

spread

one

team.

*

that

UN.

place
?4
P

#

thereto, under the first committee, the secret and
divulged to all nations.
But the prior step will have the ruinous effect

,

but at the insistence of

Dunne, The Wisconsin Company,
is
Captain
of
the
Milwaukee

violators.

against

by its

Impracticability of Soviet Proposals

of the most

ship — Fuller,
(four-man team)

prizes for first
(four prizes).
Newman L.

use

Russia, on the other hand, wants each
method of supervision, and within its own sov¬
ereignty, to be responsible for the observance of agreements.
Even
without the record of conduct of the past 12 months, such
procedure
would have been wholly illogical, utopian, dangerous, and
beyond
all common sense and prudence. With the spirit and actions
being per¬
sistently demonstrated, however, it is wholly inconceivable!
reprisal

nation

of

to all matters of every

Milwaukee-Chicago

information

of such informa¬
tion is safeguarded by international inspectors having the
power of

Apart from whatever success the Atomic Energy Commission may
in preventing humanity from being blown off the earth by
deadly missiles, the final result on VETO elimination there will be

San

score—two prizes.

over the

know-how ai*e to be

Implications

have

occurred

Hole No. 1—

on

*

The present veto

Nearest the pin, Hole No. 3—two

prizes.
Longest drive
two prizes.

the

from

*

The Veto

ber of putts—two prizes.

1

withdraw

to

Event—The

(75-90)—two

Again, the United States is willing to hand
authority, provided that the

to the international

I should like to direct one

purposes,

clude the United States along with Spain and Argentina in running
all countries. But the absurd and uncalled-for DuPont charges may

Banker

Cup

and withholding the later
stages, and the actual giving up of the bomb, until the international
control system is in full and effective operation.

martyrdom at the hands of Germany (but not of
Presumably it is up to our government to conducj its inter¬

Russia).

nal affairs

prizes.

tric Power Co.

proposals

of the first steps.

and then hypocritically attempted a paral¬

."

.

*

Cup (30-45
inclusive)—two prizes.
Blind Bogey—Wisconsin
Elec¬

K

The Soviet wants immedi¬
The Baruch proposals, on the other hand
contemplate the gradual disclosure of the information, starting with

Poland's

.

ment; and agreed
Sept. 1 next.

Handicap

consists in the timing

of the smaller nations here to work out

Special Handicap Event—E. J.
Furlong Cup (16-30) inclusive—
Special

make

vetoin?

disclosure about the least important ores,

imperialism" and

"Fascism," "Pax Americana," etc., etc.

of $1 therefore; had no patent rights, but gave them to the Govern¬

Mid-Western

immediately

and to protect these doings by
of such violators.

purposes;

Another difference between the Russian and American

sive)—two prizes.

two

own

ately to outlaw the bomb.

as

Championship

Wisconsin

their

here, but in the concurrent bitter blasts emanating from Moscow.
Unfortunately they cannot be wishfully disregarded; in a real world
Mr. Gromyko's pious utterances here in camera must be judged in

manufacture

golfers.
Golf events will

for

either inspection or punishment

not

m.

although participants in the Golf
Tournament may tee off at any
time

it

Splitting UN

(Continued from page 3470)

nual Field Day and Picnic of the

held

Thursday, June 27, 1946

antee whatever that <the other nations would- not

Milwaukee Bond G!uk

Field Day

financial chronicle

any

effective

guar¬

insuperable obstacles

organization action against sovereign states and nahona
Now with self-interested nationalism lowered to the imtia

to effective

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4502

Volume 163

1,1

of expert discussion, surely all hope of agreement on policies
and action from the world viewpoint, is decisively scuttled.
stages

•!»

4

*

increase

jj:

withstanding our efforts

of organization implementation in the social and
economic fields, was revealed at a recent meeting of the Human

Federal

Russians by way

Commission. To a proposal that definite provisions for thr
preservation of human rights should be included in international
treaties (including peace treaties), the Russian representative re¬
ported that he had unsuccessfully spent five hours trying to fathom
sucn an iaea.
Significantly he insisted on radically watering down
provisions for having local committees supervising the process oi
human rights.
His strange excuse therefor was that although in some
countries the people are more liberal than their Governments in this
regard, this of course does not apply to the (democratic) Soviet.
Rights

The

Cost of

Reserve

The Federal

(Continued from page 3481)

Policy

Reserve

tinued

Board, in

that

standard.

congressional legislation to enable

return

the Reserve authorities to control
not

only

long

government

short,

or

term

of

but

corporates.

clear that

our

also

It

(4) orphans.
Director LaGuardia, based on UNRRA's experience in caring for
the 870,000 displaced persons in camps in Germany and Italy, esti¬
mates the annual cost for caring for them at $40 million for each
100,000 people.
This will mean a charge of $1,200,000,000 for the
group which is to be taken care of by UN—a charge that must in some
way be apportioned among the member nations.
As UN operations become ever more widely ramified, the finan¬
cial burdens will become
more onerous.
In line therewith the
Economic and Social Council by resolution has established an auton¬
omous Committee on Finances, to adopt administrative and opera¬
tional budgets, and to fix the percentage
scales for necessary
contributions by the respective UN members. Sometime in the future
this may lead to controversy when our Congress is called on to do
necessary appropriating.

be

to

able

provide

ther

that

seem

without

Federal

be
to

Re¬

close

the

gate

from

funds

System

to

not

banks
the

of

purpose

adding

by investment ii
term government or cor¬
porate bonds. Indeed, that gate

long

have

time

been

It

ago.

promptly if
of

cess

must

we

inflation which

its

and

current

on

from

for

endured

have

We

supply occasioned by

the frequently broadcasted
opinions of many New Deal econ¬

years

not to

bank subscription to

White,
Koller

Co.,

& Co.

ower

Treas¬

Noble

&

on

&

buyers'

stock,

value,

of

Douglas

and

products.

many

and

copper

cause

and variety.

to increase in number

the West Coast

copper

The upgrading of lum¬
the necessity for custom

milling down to smaller sizes con¬
tinues.
Escalator clauses continue

stabilization.
on

and

ber

buyers

is

concrete

Mixed

re¬

$1.00

up

per

port

that prices are definitely
climbing and that available sup¬
plies are becoming more difficult
to locate.
"Price at time of ship¬
ment" tends to remove limits to

freight rates and other increases
due
to
higher
coal prices are

prices.

H.

Ken-

yard.

even

to

In

the public at $6,125 a share, 92,118
common

resistance,

in

machinery,

upward

until

Buyers

June 25 offered

of

in

trend will continue
competition and production

The

and

Miller,

shares

increased

vegetables.
report in¬
container hems,

canned

in

Coast

creases

have

items

or

affect practically

Board

the

items

all

price since the first of this year

F.

Co.,

and

of ac.ual increases

Some

Common Slock Offered
money

undei

West

some

bank hold¬
some ings of government bonds, more
than $50 billions have been due

Benefits from Debts

No

in

probably

price ceilings and the removal of
subsidies.
The
latest
orders

Buyers continue to receive

plus

commercial banks.
increase

is

cycle

changes are being made

Dras.ic

by the WPBT in Canada regarding

ex¬

Douglas & Lomason
total

are

future.

Prices

prices.

wages.

Debt Reduction and Money

request

a

$5.00 per ton increase.
Clothing prices in Canada

ex¬

pressure

prices

considering

pected increases, many retroactive

the

from an

be

reported up 5%.
Higher prices for lead, copper
and zinc are expected in the near

notices

closed

to avoid

are

to

appreciable upward trend of

way.

some

be

comes

money

upward

closed

reported
for

Steel scrap dealers are

vicious

banks' earnings

should

expected to be removed.

are

break-through to
are firm and
are
expected to remain so for
some time.
New ceilings for man)
industries are being permitted. A

the

to

price of cornstarch.
Ceilings on rosin and turpentine

if material shortages could
corrected, business would soar
new peaks.

lower

making commercial loans but for
the

agents

indication of any

oi

purpose

purchasing

prices is noted over a month ago.
On
the o.her hand, there is no

Reserve

for

as

coke and many

coal,

Pig iron,

listed

formerly

items

steel items have been advanced by

that, with major strikes set¬

No

seeking

Federal

the

Great Lakes

Commodity Prices

authorities could and should

serve

this

with

or

fur¬

the

legislation

turers

tled,

for

the banks to make such loans but

it would

come

work. The

to

Industrial
feel

ought to

reserves

have

of

settlement

back at American lake OPA.
A
10%
increase has been al¬
mines, and this situation
unless soon corrected, will be ex-» lowed in the price of office fur¬
tremely serious to Canadian in¬ niture.
Look for
an
advance
in the
dustry.

banks must be able

Federal Reserve System

from

coal

ports

long

of

should

ing

bonds

perfectly

is

effect

shipping strike is currently hold¬

the holdings by commercial banks

Austrian Jews, and

by our

Drop forged wrench manufac¬
are eliminating many dou¬

ation clear and asks for additional

functions, an interna¬
tional organization, operating under the aegis of UN will deal with
the world's vast horde of refugees and displaced persons after the ex¬
piration of UNRRA next Dec. 31. Their number is now estimated at
3,000,000, made up by the following categories:—(1) victims of Nazi
or
Fascist governments; (2) political dissidents; (3) German and

the

industries.

stimu¬

ble-end

to finance industrial, agricultural
and other business operations. Our

Of

produc ion in electrical and other
in

but

lating

Refugee Aid

bonds

pace,

not the

was

the rail'and coal strikes in U. S. A.

to make current commercial loans

3475)

rapid

a

there

for the first time makes this situ¬

Irrespective of the exact form in which it

(Continued from page

at

Canada

its annual report to Congress, now

$

$

ifi

$

Sees Better Business Ahead

reduc¬

at

F '

not¬

supply

money

tion of government debt.

indication of what may and may not be expected from the

An

our

$2

hedging

commitments

with the easing of

Canada,

Employment

ally upward.

Lomason

firm

on

immediate delivery.

for

price controls, the trend is gradu¬

par

increased

anticipating

Sellers

Employment figures indicate a

Co. Of these shares, 18,910 are be
ury issues but to bank buying of
better trend ihan a month ago,
a simpler political
Inventories
Treasury obligations on the se¬ ing offered for the account of the
although the change is slight. Ma¬
called them spend¬
The trend of a month ago to terial
curity
markets. But since the company and 73,208 shares for the
shortages continue to block
thrifts — who glibly told us that
definitely lower inventories ap¬ further
Treasury is not now issuing new
account of certain selling stock
employment
of
help.
deficits and consequent debts and
pears somewhat checked. The un¬
obligations, the current increases holders.
Building material manufacturers
their management had possibili¬
balanced and spotty condition con¬
in our money supply are due to
report shortages of labor.
Net proceeds
accruing to the
ties of benefit to the public wel¬
bank
purchases of government company from this sale are esti¬ tinues. Coal, steel and nonferrout
Employment on the West Coast
fare. Lord Keynes, their leader, is
metals are definitely lower.
The is better than a month ago but
bonds,
or
corporate bonds, or mated at $97,763, with $43,686
dead, and Professor Harisen, the
machine tool industry reports in¬
loans. In other words, the banks

omists

in

—

we

economy

enthusiast

Harvard

for

deficits

not recently been
heard
from. Perhaps
it is too
much to expect that all of these
."experts" who uttered what now

•and

has

debt,

to have been silly mathe¬
matics and foolish financial policy,

.appears

influence

their

lost

have

as

ad¬

questions of public fi¬
certainly the gradual
reduction of our debt disclosed by

visers

on

But

nance.

fact

plus the

figures,

the. above

has reduced from
$300 billions to $275 billions the
that

Congress

power of

Government

the Federal

to incur debt indicates as do

that

current events

in thought, word and
back to sounder and more

way

oot.imist'c.

Our

still

billion.

$270

Federal

Our

not yet balanced and
expenditures are running at

budget
our

practi¬

however, be too
Federal debt is

not,

must

our

action,

policies.

cal financial

We

other

we are on

is

billions a month.

the rate of four
Until

we

substantially

decrease

expenditures we can
our budget let alone

these current
not balance

surplus to provide £or
reduction. It musl

produce

a

further

debt

be

that the eight
in debt reduc ion

remembered

billion

dollars

accomplished
made

out

of

the Treasury,
over

proceeds

not
of
but out of the left
of the Victory Bond
this

year was
surplus income

If we am
reduction of the debt
soon
either
increase

sales of last December.

to continue
we

must

taxes,
wanted

by

is

certainly

which

anyone,

or

our

money

under pressure from
but by their volun¬

not

supply

the Treasury

their holdings of

tary increase in

government, corporate and private
obligations. The Federal Reserve
authorities have encouraged or
assisted this further increase in

dicate

of certain

five years.

of

real

applied

ing

addition

an

estate, $40,000 be

construction

the

for

to

have

of money

holdings

they cannot pur¬
government or cor-

excess,

no

either

chase

Nevertheless,

obligations.

oorate

been purchasing both
government and corporate obliga¬
tions and in many instances long

they have

term

during this pe¬
in their re¬
has been made possi¬

obligations

stringency

of

riod

serves.

This

remainder will
be used for the purchase of ad
ditional
machinery
and
equip
ment.
With
the
completion of
this financing, outstanding capi
talization
of
the company will

by the Federal Reserve Banks
continuing to buy from the com¬
mercial banks or

lend to them on

security of short term govern¬
held by the banks. By such

the

ments

borrowings to the Fed¬

sales

or

eral

Reserve

in cur-

ments

and

the

com¬

obtain excess re¬

their

over

to

banks,

banks

mercial
serves

supply

in prices, has been

increased dur¬

ing the past few years from $60
billions to
And this
to

the

more

than $175 billions.

increase is

directly due

of

government

holdings




lot

little
to

The

permit buyers

up

build

inventories

up

on

especially short in the

State of Washington.

inventories. There is
likelihood of any opportunity

build

a year

ago.

Labor is

Conditions do not
to

well as grilles, interior
garnish, ashtrays, windshield and
glass channels, name plates and
ings

legal

thereby

make purchases

are

require¬
enabled

of other gov¬

locks for automobiles.

materials in
unemploy¬

of

shortages

Canada accentuate the
situation.

ment

basic

ation of

banks but

commercial
without 'the pressure of
and

the Treasury
new

through the cooper¬

the

need for floating any

issues, we are

continuing to

are

many

on

materials

difficult that it is necessary

so

ranging
commodi¬
ties which are normally bought
currently. Contracts are made for

to

commitments

make
30

to 90

days on

six months to one year.

Under R. L. McGuinness
ONEONTA, N. Y.—Orvis
ers

&

York

Co.,

General

have

under

management of Raymond

McGuinness.

The

The

firm,

one

members of the

will

office

located in the Hotel

L.

with

the

Exchange, was es¬

Phillips,
1421

Philadelphia

SchmeNz

fails to conform with
seller's conditions.

The

Commodity Changes

commodity price and

situation

curement

rapidly

can

employment
These factors,

full

expect

produc.ion.

and

future

prices, create lack of con¬
prospects over

fidence in business
an

extended period.

&

associated
office

of

Robinson

the scarcity of
basic materials prevents the large
increase needed in productivity.

order backlogs, but

-

ffl l»

-

■

\

"

"

so

McKenna Acquires

Membership

Stock Exchange

of lumber, of industrial

firms, have

practically dried up.

and paper products
difficult to obtain.

Paper
very

now

the

greatest

are

products
threat to

Shortages of wire mill
are

Chestnut Street.

large

have

manufacturers

All

pro¬

changes

that it is difficult to be

Slocks

PHILADELPHIA, PA.—Newton

the

honest and con¬
policy.
Strikes, labor disputes and tax¬
ation must be cleared up before

the adoption of an

ports received, however, it is pos¬
sible to generalize to some extent:

With

Aspden has become

is

sistent labor

specific without naming an almost
limitless list of items.
From re¬

Phillips, Schnflrtz Co.

with

can

if the buyer

Specific

oldest

tablished in 1872.

J.

many

be

Oneonta.

of

places orders,
uncertainties. Mate¬
be readily sold elsewhere
buyer

industrial

rials

the

of business

future

dependent mainly upon the Gov¬
ernment's release of controls and

Broth¬ by "ifs" and "subject to," and the
coupled with the uncertainty of

Exchange,

Stock

the

erally,

we

covered

Forward contracting is

members of the New

opened a new office here

the Federal Reserve au¬

thorities

Branch

Orvis Bros. Onen

pattern.

Deliveries

from

usually of longer

result is that

set

as

term
and higher interest rates or long
Newton Asndpn
frequently pointed term corporate obligations. The

of
money
in
this country which is the source
of much of the inflationary trend
the

in

Many buyers feel there is a
orders.

protective mould

decorative and

Inflationary Supply of Money
As has been

inventories

lowest

the

of "water" in forward

present plant. The

ble

ernments,

out,

company's

the

period

well under the same

going toward payment of the bal
ance
due on the purchase price

commodities until well into 1947.
making
Never has there been
a
time
Wes. Coast buyers report sup¬
obligations by providing the banks
when business was more confused
and especially the large banks of
plies lower.
Raw materials, par¬ and uncertain. Every one appears
amount to 303.000 shares of com
New York and Chicago with ex¬
mon
stock. There is no funded ticularly pulp, are being used up to be carrying on from day to day,
cess reserves which make possible
faster than received.
debt.
making some profit; but future
In
Canada the inventories of
further purchases on the market
planning seems almost impossible.
Douglas and Lomason Co. was
food products are reported low¬
by the banks. For several months
If
labor
difficulties
can
be
incorporated under Michigan
the
est since last year's pack of canned
reports of Federal Reserve
stopped short of tie-ups by strikes,
laws in 1902 and since that time
Banks show that the Chicago and
goods and are being cleaned up and if the prices approved by OPA
has been continuously engaged in
New York banks have had little
very fast.
are sufficient ,o show some prolit,
or
no
excess
reserves,
that is. the manufacture and sale of hard
we
are all
set for some splendid
ware and hardware specialties to
Buying Policy
reserves in excess of the amounts
production records. The demand
the automotive industry. Specific
The policy of industrial buyers
which they are required by law
for goods is tremendous and the
ally, the company supplies belt,
to hold as reserves against their
continues to be dictated by expe¬
ability to produce is available.
sill, reveal and other exterior,
diency rather than following any
deposit liability. When the banks
In the opinion of buyers gen¬
bank

must

we

make very real reduction
cent expenditures.

not

increasing

now

are

Thomas
elected

a

F.

on

New York

McKenna

has been

New
He is con¬
Thomas Marsalis &

member

of

the

York Stock Exchange.
nected

with

11 Wall Street, New
City, and formerly was with
ris Joseph & Co.
Co.,

York
Mor¬

r

,3516

THE COMMERCIAL & FINANCIAL CHRONICLE

executive directors may be able to

question. For location in Wash-:
ington meant that the United
States would always have contin¬
uous representation on the execu¬
tive boards, and this would com¬
pel the other countries in self-

put in

defense

Bank and Fund Undei Organization
(Continued from page 3478)
tiling publicity for the present,
pending the employment of press
officers, has the endorsement of
the executive directors, one may
wonder whether it may

tain

the

was

noticed

not con¬

disadvantage that

same

Savannah

at

when

Secretary Vinson disclosed to the

day that thereafter no
other delegate to the inaugural
meeting of the Fund and Bank
would
hold
press
conferences.
Some of the foreign delegates are
press

one

have felt

known to

them off from
of

that this

legitimate

a

cut

means

twice

directors

directors

week.

mittees

of

com¬

In

directors

executive

when necessary.

meet

Problems faced by Messrs. Gutt
and Meyer

include, in the imme¬
present, the selection of a
staff along principles established
diate

ft

at Bretton Woods and set forth in

w

the

agreements.

the

staff

so

be

These

both

geographically

that

are

competent and

repres e n t a t

i

v e.

Several thousand job applications
have been received by the Fund
and
■'V''

Bank, but

have

been

fp

■If

United

few

persons

far, and
largely from the

come

so

States, where the tax-free

status of Fund and Bank salaries

is proving an enormous hit.
As

&

very

engaged

these have

lit

some

Washington.

expected, several of the
Treasury staff who worked on the
original White Plan and on its
was

evolution

since

then

have

either

obtained positions on the Fund or

the Bank,

or

No

far

fact

that

Dr.

Luxford

spective

high

number

Fund

the

of

official

"Chronicle"

consulted

observed:

a

by

"It

is

not envisaged that the Fund will
ultimately
have
an
enormous

respectively early in May.

V. Frank Coe, who at the Treas¬
ury became chief of monetary re¬
search after Harry White became
Assistant Secretary of the Treas¬
ury, and who since last August
served

as

secretary

the

of

Na¬

secretary of that institution.

has

as

many as 200

altogether."
regulations are one
of the things the Fund has been
working on. These will imple¬
Rules

and

the

ment

Agreements
They will not

Laws.

public,

and

By-

be

made

high official of the Fund

a

advises this correspondent.
When the governors convene in

September they will be presented
with
reports
from
Fund
and
Bank.

E.

M.

Bernstein, Harry White's

advisor

of

genthau

and

Woods
Council

matters,

Bretton

on

National

with

research

Advisory

has

director

been

post

the

of

of

re¬

acting

the

Fund.

Luxford, top-notch Treas¬

attorney,

ury

Secretaries Mor-

Vinson

and

warded

Ansel

both

for Bretton

who

has

Woods

ginning,

has

General

Counsel

Friends

of

become
of

Luxford

Bank.

think

that

only his youth prevented him be¬
coming General Counsel. If so, it
is because Mr.

the

able

ford
the

life

Meyer has not
in

manner

has

which

performed
of

the

throughout

Bretton

Richard

program.

seen

Lux¬

Woods

Brenner,

an¬

other Treasury
lawyer, has joined
the Fund

as

an

attorney.

The nomination this
John S. Hooker to be

American

Executive

week

of

alternate

Director

of

the Bank is regarded in
Treasury
circles as "another proof that the

$

World Bank is

more

to those which the BIS has

ways

published

racket."

serving
the

Economic

and Bank

Mr. Hooker's wife is Mr. Collado's
secretary. A biographical sketch
Mr.

Hooker

"Chronicle"
p.

appeared

of

May

2,

in

the

1946.

2355.

world organization

new

of

the

Treasury one
finds in Washington considerable
interest in jobs on the "Fund or
Bank."

Quite

ing is going

a

on

bit of

maneuver¬

to get applications




and,

pre¬

sumably,

as

Nations.

Actually, the Fund and

dinate

subsidiary to United

relationship.

themselves

subor¬

a

They

pride

the fact that their

on

programs call for them to be self-

supporting
penses.

to

as

operating

What is indicated is

ex¬

writ¬

a

ten

understanding
or
"treaty"
with UN setting forth the exact
relationship.
Naturally, one of the dangers to
be

avoided

is

duplication

Economic and

in¬

of

efforts

Social

and the Fund and Bank.

by

Council
Both

authorized to operate in the

are

same

fields.

Another

problem

which

the

directors
happy.
This
means
avoiding their acquiring a feeling
of

frustration.

There

was

some

fear among foreigners at Bretton
Woods and at Savannah that the
Fund and Bank might become an

American show.
behind

ington

This

was

in

part
fight against Wash¬
the headquarters of the

the
as

two institutions.

deed,

the

At Savannah, in¬
most troublesome

two

nates.

those

directors

The

as

British

a

site

and

remunerations

American view
and

of

on

and

alter¬

opposed

both

of

the

questions,

compromise

it

was

agreed that any country which did
not want to have full-time

execu¬

tive directors could be represent¬
ed by an alternate.
This is how
it

happens

Canadians
Fund

that
are

the

British

and

not represented on

and

Bank

boards by full-time

Once the British

top

executive
men.

licked by
Washington as head¬
quarters, the wind was taken out
were

the choice of
of

the

British

sails

-immr

on

the

other

materially

Government's

an

asterisk

holders

blocked

of

At

ances.

sterling
its

present

bal¬

bargaining

technically most of the

personnel of the Bank is John S.

quick

a

The most recent addition to the

While
executive

directors

here

are

full

Hooker

of

Maryland, who was
by President Truman

nominated

time, there is a risk that, unless
thought is given to the matter—
especially
in
the
Bank
where

on

American interests have

ination is for

been fo¬

mainly

are

Unless
deal

there

of

should

be

committee

mornings
be

to feel that they
full-time ornaments.

good

a

work,

two

week is not going to
heavy diet for an active

a

mind.

Mr.

Bank's

work

in

any

Hooker

board of the

act

U.

as

the

on

S.

directing

Bank whenever

ex¬

position is

a

native of Phila¬

delphia and has been temporary
secretary of the World Bank since
in the State

ed

March.

Previously, he had been

with
U.

now

Department, associat¬
Collado, who is

Emilio

S.

Executive

Director

of

the World Bank.'

Bank

not

was

organized

soon

Britain

One

If the

negotiations with them need
the Govern¬

ment may be in a better
position
to estimate the

country's capacity
delivering the goods, and can

of

therefore
dates

loans

is

that

provision

of

ithe

World Bank Agreement (III, 4, ii)
which calls for the Bank to make
sure, before granting a loan, that
the
borrower
under
prevailing
market conditions would be un¬

to obtain the loan

conditions

which

opinion of the Bank

are

able for the borrower.

pretation

the

reason¬

The inter¬

potential borrow¬

some

would

ers

in

has

like

to

do

with

whether Or not this restriction in
the

Agreement applies to the

tire

of

amount

en¬

sought by

money

the borrower. The question arises
in the case of a
borrower with

good credit, such

very

as

Belgium

Holland, where the possibility
borrowing in Wall Street is
known,
but
where
additional
or

of

amounts
Bank.

desired

are

Be

that

as

from

it may,

the

several

countries,
including
those
just
mentioned, have
already made
known their intention to apply to
the

World

Bank

for

loans

and

of

early to be sure
place well up on the queue.

a

spent
at

the

the

the

fact

world

of

is

that, in this hectic

transition-to-what?

can

five

see

years

much less 50, in making a
loan. The
directors of the
Bank

and

of

National

Council for that matter

no

ahead,
foreign

World

Advisory
are

in the

position of a man plunging at
night into a stream to swim across
to an

not

opposite bank which he

see

Mr.

tive

and

never

Gutt's

has

successor

Director

on

the

can¬

seen.
as

Execu¬

Fund

and

Bank

representing, on the former,
Belgium, Luxemburg and Iceland,
and

on

tries,

Chancellor

keep down to

the

of

time

loan,

Imports

able in dollars have in

low

as

the latter those three

plus

Norway,

was

coun¬

at

last

as

fact been

possible, to avoid

after

Savannah

meetings

as

and

Bank,

here.

De

Ernest

deSelliers, is
Selliers, a finance min¬

istry official concerned with mon¬
etary matters, was formerly Bel¬
gian financial attache in Wash¬

ington

and

in

that

capacity

at¬

conclusion of
not

now

major disaster

a

the

not

were

be

even

postponed

Congressional

elec¬

tion, for the Treasury is now cer¬
tainly in a position to hold out
till the
beginning of 1947. That
mean

the

additional

an

delay in the

six

restoration

convertibility of sterling;

and

unpleasant

would

the

additional

an

be

while

if,

is

helpful

very

consolidation

Even

six

"austerity" which, how¬

of

lasts,

towards

the

position.

as now seems

probable,

the loan should be obtained short¬

ly, the

Treasury will do its

ut¬

to maintain

the atmosphere
Various Government

of

austerity.
departments have submitted their

the exhaustion of the gold reserve

before the loan became available.
Had
the
loan been
ratified
in

proceeds of the dollar
loan; these claims are being dras¬

January
have

or

been

Treasury

February it would
impossible
for
the

to

resist

pressure

in

from

of

increased

tically reduced by the Treasury.
It will not be
easy, however, to
resist

pressure for increased im¬
ports and reduced exports in order

to

chances

long-suffering

are

that

by

now

some

hundreds of millions would have
been so allocated in addition to
what has been actually spent.
Had the loan been ratified

this

the

year,

early
exchange

foreign

by

its

effect

exports.

on

It

was
not easy for the Govern¬
ment to resist pressure in favor of

making

the

civilian

goods

growing

output

available

to

of
the

British public instead of
exporting
very large proportion of it. The
Government
is
very
keen
on

maintaining its popularity, and it

provide

relief

some

for

the

consumer.

Portsmouth Stock

on

Market at $10 Per Sh.

position would have also been af¬
fected

allocations

the

favor of more liberal allocation of
dollars
to
importers,
and the

A
of

new

issue of 1,025,000 shares
Steel Corp. com¬

Portsmouth

mon

stock

was

offered to the pub¬

lic June 26 at $10 per share. Sole
underwriter of the issue is Otis &
Co. of Cleveland.
Portsmouth
Steel
Corp. was
recently
organized
by
Cyrus
Eaton, Cleveland industrialist and
banker, and a group of associ¬

might have been tempted to ab¬ ates to acquire the Portsmouth
stain
from
pressing its expor$ "Works
of The Wheeling Steel
drive to the extent it has
actually Corp. at Portsmouth, Ohio.
Mr,
been pressed. Owing to the
Eaton and his associates are re¬
pos¬
sibility of long delay, and the risk taining ownership of 50,000 shares
of
non-ratification, however, it of the stock now being offered.
was
Of an additional 300,000 shares
considered inevitable to di¬
vert the largest
possible quantity of common stock to be issued by
of goods from the home
Kaiser-Frazer
market Portsmouth Steel,
to overseas.
This, together with Corp. has agreed to purchase
the cutting down of
imports pay¬ 200,000 shares and Graham-Paige
able

Motors Corp. 100,000

an

public

in dollars, must have made
appreciable difference to the
British trade balance.

The Government's drive for in¬

adviser of the Belgian delega¬
tion, is not yet in Washington,
but his alternate, on both Fund

is

expected

claims

creasing production must also have
been helped by the
delay. Official
speakers in the campaign did not

an

the

was

would

if the ratification
till

most
pay¬

He is Hubert Ansiaux, for
many years director of the Bank
of Belgium. Mr.
Ansiaux, who at¬
tended the

delivery
asking

reserve

as

en¬

elected by cable some two weeks
ago.

of

it

considered

Ex¬

minimum their

a

dollar requirements.

kept

gold

rapidly

as

ever,

chequer to induce other Ministers
to

merely

best.

months'

a

The

one

uncertainty of the ratification
the

definite
of

holders of sterling to
hope for the

ances;

In the first place, the delay and

abled

offer

instead

additional six months' delay in
the
settlement of sterling
bal¬

(Continued from first page)

with Bank

not vague

not be concluded until the
middle
of 1947, by that time

of

Awaiting Loan

point which is still to be

want

advantages,

an

enough to handle.

decided in connection

strong, owing

undertakings of future deliveries

Since

Mr. Hooker is

too

none

io

absent.

is

being done by the Export-Im¬
port Bank and NAC during this
period when the Export-Import
Bank is performing the more ur¬

will

ecutive director Emilio Collado is

may be less than otherwise,
because of the spade work which
case

nom¬

two-year term.

a

representative

a

The

June 25 for United States alter¬

nate executive director. The

presidency—some of

have done it this

Fund and Bank will
always have
is that of keeping the executive

the

Outside

as

executive

For

Those marked with
are

'

able otherwise

depicted the Fund
integral parts of the

will

progress

immediate

under

have

temporary secretary of
Savannah.

of

the other.

the

New American Alternate for Bank

ington

and

since

Council

on

of

trip

make

to

In the past a great many
speeches
and charts emanating from Wash¬

functions

many years he has worked under
his present chief, E. G.
Collado, at
the Treasury and State
Depart¬
ments as his research assistant.

of

Social

be¬

hand and

one

Nations

were

Bank

relationship
the

and

the United

questions

Mr.
as

the
on

result

bargaining position in relation to

Chile, etc.

home.

Problem of Bases for Bank Loans

of

a

the
adverse
trade
balance
Holders of blocked balances

Relations with United Nations

tween them

Meanwhile

likely to im¬

principals.

annually.

question

as

improve the British

World Bank but which the World

State Department
Hooker
has
been

a

ments.

the Fund and Bank to issue

the

be¬

dustries

would

extensive reports, similar in some

year.

in the conversion of
in¬
for
peactime
require¬

progress

months'

the

Assistant

representing

Government

that step until
the

further,

prove

That

Illanes,

that

trade balance is

our

ing which properly belong to the

formation-gathering

the

of

gent tasks of reconstruction lend¬

labored

since

Rist, representing

not take

middle

These will be made public.
They will most likely be general
in nature. Later, we may look for

Bank do not relish such

invaluable assistant at the Treas¬
ury for many years and a close

Bolton

B.

Fernando

Machado (Cuba)

and

cused in the

employees. It will be
long time before the Fund

♦Leonard

need

France.

Among

them may come

tional

Advisory Council, has re¬
cently moved over to the Fund as

are

a

shortly. Harry White and E. G.
Another matter the Fund and
Collado, of course, moved from Bank have been
working on is the

Bank

Canada,

number of
very

Belgium, etc.
Ernest Sturc, temporarily rep¬
resenting Czechoslovakia, etc.
*
Joaquin Meyer,
representing
Cuba, etc.

their
repre¬

Bank.

ginning of 1947, the

acting executive directors as
well, in the absence of their

so

their Government posts to execu¬
tive
directorships in Fund and

and

to

♦Ernest de Selliers, representing

on more

be

named

Bank

the

need

be restored
till
12
months
after the loan has been
obtained
It will make a
considerable dif¬
ference that, instead of
having to
restore
convertibility at the be

expected

re¬

personnel,

to

of

convertibility of sterling

(United
Kingdom),
Mladek
(Czechoslo¬
vakia), Joshi (India) and Gomez
(Mexico).
Mr. Gutt himself is

departments,

to

Fund

the Bank

on

been

research
and legal.
The top posts are left
open for future assignment.
As

from

Bern¬

has

the

of

employed, but in

neither

Mr.

nor

continue

Gutt

date follows:

abroad

trips,

not

A list of the alternate executive

those who have gone home, apart
from our
commuting
neighbors

appointments
to
the
Fund
illustrate
the
policy
of
caution not only in the fewness

expected to do

are

countries

Recent

so

extended

Mr.

which

delegation

directors

sented; and, in these cases at
least, the respective alternates are
playing an active part in the work

hard and fast rules have yet been
laid down to cover this matter.

of those

from

already gone home

less

or

indicated, will pay
of such recruits and their families
in travelling to

meet

addition,

executive

a

In

assigned the top post in their
executive

.have been meeting in plenary ses¬
sion three times a
week.
The

Bank's

abroad.

directors

the

of

Woods

as

headed.

it

have

from

executive

Bank, it is
the expenses

stein

The Fund's

Thus

recruited

a

instances the Fund and

the

personal kudos

likewise.

in

secretary

the

the

con¬

Bretton
1944

tended
ference

happens that while several of the

their views publicly
known. There is obviously the ad¬

involved.

do

to

good word, that channel
also is not being overlooked. Nat¬
urally, some of the staff will be

ditional factor of

f-

making

placed in the right hands. On the
theory that some of the foreign

Thursday, June 27, 1946

fail to point out that the loan
may
not be received, after

all,

it

may

year,

do

not be received

and

their

exhorted
utmost

country to
without it.
What

is

carry

or

till

that

next

workmen

to

enable

on,

if

need

to
the

be

vide

the

two

important, valuable

even

more

time has been

gained, since under the agreement

automobile

com¬

panies with steel for Kaiser and
Frazer

cars.

Elmer A. Schwartz, 45-year-old
veteran
steel
operating
man

whose

president cr
announced
last week, has subscribed for an
additional 15,000
shares of the
steel company's stock at $10 per
election

Portsmouth

share.

Mr.

Portsmouth
considered

shares at the

offering price. The steel
company has contracted to pro¬

as

Steel

was

Schwartz
Steel

from

comes

to

Republic

Steel Corp., of whose Youngstown
he
has
been
assistant

district

manager.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4502

[Volume 163

National

John W-Snyder New Treasury Head
izen is also

citizen of the world.

ber was ordered overseas. From
(Continued from page 3484)
of my good friends. It is to his interest to study and January to May 1918, he attended
understand his duties and respon¬ artillery schools at Samur and
I am particularly
happy to be
honored by the presence of the sibilities as a citizen of our mod¬ Coetquidan,
France,
and
was
graduated with honors. In May
president. Also, it is a rare priv¬ ern world.
We are well on the way toward
ilege to have the honor of being
1917, was assigned as Operations
inducted into office by the man our dual objective of building a Officer, Headquarters Staff, 57th
stable and prosperous
Field Artillery Brigade, and was
economy at
who, at the same time, is the Chief
Justice of the United States, my home, and of helping other na¬ on duty with troops, in above
a

life, so many

predecessor as Secretary of the
Treasury,
and my friend.
An¬
other source of great happiness to
me
is the fact that I have with
me here my
esteemed colleague,
Max
Gardner, who will be so

associated with

closely

Un¬

me as

tions

to

build

theirs.

To

reach

this goal, we need the active

un¬

derstanding and cooperation of all
the people.
Today, more than ever before,
our motto should truly be, "United
We Stand; Divided We Fall."

Secretary.

der

I

friends and able coun¬
selors to aid me in decisions of
future policy
on
monetary and
fiscal matters.
Decisions
of
policy
are,
of
course, of no avail unless they are
based on the best available data
and unless they can be promptly
and vigorously carried out.
It is
auspicious and providential that
the Department of the Treasury
possesses

outstandingly

an

able

staff of public ser¬
specialists in the compli¬

devoted

and

vants,

diversified fields

and

cated

I shall

by the Department.

ered

cov¬

rely upon their counsel and guid¬
ance.

presumptuous for
to state in detail at this time
various fiscal and monetary
be

would

It
me

the

the

which

measures

government

In

presenting Mr. Snyder to the
audience, O. Max Gardner, Un¬
der-Secretary of the Treasury,
who

presided

spoke

induction,

the

at

retir¬

Our

of

Secretary
the

and pres¬

ent Chief Jus¬

So many press¬
fate us, however,

problems

ing

like to name,

should

that I

briefly,

very

that

tasks

citizens

American

face

the

of

some

their

and

government in the months ahead.
The job of converting our huge

the making of

machine from

war

to

expression

the ideals and

aspirations

of

"To

O. Max Gardner

to

this

nations."

great

cause

new

our

Secretary
of
the
Treasury
is
equally devoted and just as deter¬
mined.

believes

He

without

that

sound and strong
cannot meet the needs

financially

a

America
of

we

people

our

hopes of

the

and

munitions to the making of peace¬

the world. He has had

ful and honorable career in priv¬

in

less

in

terms

time, and at
idle

of

a

lower cost

plants

and

idle

than most of us exoected.
In spite of temporary halts and
slowdowns, the economy is now
producing more civilian goods and
men,

services

than

before

ever

in

the

nation's history.

production,

additional respon¬
the responsibility
the government to reduce its

sibilities.
of

go

It

is

expenditures

to

way,

in

possible
adequate tax

every

maintain

rates during this transition period,
and to achieve a balanced budget
—or

better—for 1947.

It is the re¬

sponsibility of individual citizens
to

continue

produce needed
goods and services at the highest
possible

and to

to

level,

to

lay aside

wisely,

spend

portion of their

a

income for the best and safest in¬
It is the de¬

securities.

termined duty of the Treasury of
the
United States
these securities.

to

credit and

have

almost

an

reservoir of energy in

this

coun¬

which to draw in build¬

upon

permanent high-production,

a

high-employment
sources of
cur

limitless

rich

dollars

economy.

defend

natural

resources,

be to stand as

war,

the in¬

and

businessman.

If

tap this reserwill enable our
free
enterprise
to

wisely,

we

we

of

flourish in the public interest and
lor the public
good.
cannot

nation—or
°ut a

from

have

a

prosperous

peaceful one—withstable world.
For that reaa

°n, if for no

vent

the

other, we must pre¬

seeds

springing

of

up

isolationism

both here and

abroad. The Bretton Woods Agree¬

ment was
direction

a

rock for national

solvency and for a balanced budg¬
at
the earliest possible mo¬

et

consistent

ment

with

the

public

welfare.
W.

Snyder,

is

yours

a

a

tre¬

responsibility.

The

difficult

mendous

thousands

task

and

faithful

of

Treasury

employees, as well as Americans,

a forward step in the

of

international

removing barriers to
trade
and
invest¬

ment. Today, every American cit¬




summer camps

promoted

may

give

you

great obligations that have

been

to you.
is

attended

historic

an

occasion.

Army maneuvers held at Presidio,
San Francisco, California. At the
outbreak of World
War II, Mr.
Snyder was unable to take

Corporation.
business as bookkeeper
First National Bank at

the

Forrest City,

Arkansas. Following
was engaged
in

today performing his first offi¬

tice

administering the oath

to his successor. I have

honor

to

present Chief Jus¬

Vinson."

Snyder's Career

John Wesley Snyder
of

Arkansas.

was

a

native

on

born

in

June

After graduation
from the Jonesboro High School,
he attended Vanderbilt University
at Nashville,
Tennessee. At the
outbreak of World War I, he at¬
Hatcher Snyder.

tended the First

Officers' Training

Logan
H.
Roots,
Arkansas, from May until August
1917. In August he was commis¬
sioned Second Lieutenant, Field
Artillery, and assigned to Head¬
quarters,
57th
Field
Artillery
Brigade,
32nd
Division, Waco,
Texas.
(Michigan and Wisconsin
troops.) Was promoted to First
Camp,

Fort

Lieutenant, Field Artillery in Sep¬

tember, and the following Decem¬

in

civic

a

Company.
active

very

affairs.

He

the St. Louis

Chests

Community and War
1937 to
1944; Vice
special subscriptions,

from

Chairman,

in the St. Louis War Loan Drives
Nos. 3, 4, 5 and 6;

Surplus
the

Louis

St.

Committee

Chamber

search

War

Contract

Cancellation

and

Louis

Com¬

of

Member,
mittee

Visit

Termination

Committee,

Chamber

of

St.

Commerce;
Louis
Com¬

St.

Chairman

and

its

of

fi¬

April

30, 1945, Mr. Snyder
appointed Federal Loan Ad¬

was

ministrator.
tration

he

During his adminis¬
perfected the consoli¬

dation of five

tions

into

Finance

subsidiary
the

These

Defense

were:

Corporation,

corpora¬

Reconstruction

Corporation.

sidiaries

Rubber

sub¬
Plant

Reserve

1930.

to

1930, he was aopointed na¬
tional bank receiver in the Office
In

Comptroller

the

of
in

ing

years

generally, and for seven
he was engaged in the

liquidation
long

of
closed
Missouri. The

and

one

Citizens

Cherokee

National.

Grand

national

list was
included the
National and the Sedalia
Banks at Sedalia; First
at
Washington;
the

in

banks
a

hectic times for

were

years

of

Na¬

tional, Twelfth Street National, St.
Louis National, and Vandeventer

of St. Louis.

In

1937,

of

Mr.

the

Snyder

became

over-the-counter
in

career

back

Wall

recently

states.

Mr.

investments

actively

trust

common

sponsored

funds

Kalb

in

many

originated

Corpora¬

and

managed the investment research

department for the old New York
Stock

Exchange

firm

D.

of

M.

was

a

partner prior to becoming asso¬
ciated with Lewisohn. Previously
he

developed and

of

the

in

was

charge

security research depart¬
ment of the Stock Exchange firm
of
Clark, Childs
&
Co.,
later

Clark, Childs & Keech.
Mr. Voorhis, who also

a

was

partner of Lewisohn & Co., has
been associated with John Kalb
for the past

Loan

goes

Widely known
analyst, he has

a
security
specialized in trust

and

division.

Street

years.

many

as

joined

Disaster

ten

him

Mr.

having first

years,

in

D.

Voorhis'

M.

Minton

&

tion.

Co.

On July 23, 1945, the President
appointed Mr. Snyder Director of

Street began with J. P. Morgan &
Co., after which he was with the

the

Office

and

Reconversion

War

of

Mobilization

which

position
he held until appointed Secretary
of the Treasury.
Mr. Snyder is a life member of
the

Missouri

ing

its

on

1940-46. He

Athletic

Club,

serv¬

Board of Governors
Vice President of

the Club 1944-45, and was elected
President

in

1945.

memberships

Other

include

social

the

Noon¬

day Club, Racquet Club. Bellerive

Country Club, Rotary Club — life
member (honorary), Forrest City
Arkansas;
Aloha
Tau
Omega

Fraternity,
Military
Order
of
World
War,
American
Legion,
St.

Louis, and

Association

cers'

States,
■"

he

■■■

is

Department,

of

■■

The

Boston

heads

Corp.

investment

an

is

which

ings

trusts;

various

of

not receive
from
the
sale

will

pany

ceeds

the

com¬

any

pro¬

of

such

shares.
The

incorporated

company,

1920 in New York State as

&

Heumann

ir

Keller.

Thompson Co., Inc.,

adopted its present name in 1939
With
its principal factories lo¬
cated

Rochester, N. Y., where
was
founded, the

in

business

the

years

associated

was

in

wide

circle

of

acquaintances

bankers and investment
throughout the country.

among
men

Mr. Newsome has been
ber

the

of

New

York

change since Oct.
became

he

a

mem¬

Stock

Ex¬

18, 1928, when

associate broker of

an

Carlisle &

Jacquelin. In October,
1941, he severed this connection
to
become
a
representative of

Spencer Trask & Co., with whom
he has been associated until the
formation of Kalb, Voorhis & Co.
He

was

Trask

on

leave

active

on

USNR

tenant

from

Spencer

a Lieu¬
February,

duty as
from

Co. for several
after graduation from Wil¬
liams College.
In 1928 he asso¬
ciated with Tucker, Anthony &
Publishing

years

Timely Clothes

First

he

the syndicate department of Leh¬
man
Brothers. Mr. Voorhis has a

Age

First Boston Offers

Stock of

Wall

in

1943, to August, 1945.
Mr. Phillips was with the Iron

President.

now

—MW———

1

United

the

of

Missouri

which

Offi¬

the Reserve

career

Guaranty Trust Co. For four
thereafter

was

manufacturers and sell?
clothing under the label
"Timely Clothes." Its products are
sold
to more than
1,000 retail

members of the New York
Exchange, whom he leaves
to join Kalb, Voorhis & Co.
A
director
of Financial
Industrial
Co.,

Stock

Fund

of

Colorado,

Denver,
of

member

executive

the

and
com¬

mittee of the Association of Cus¬

tomers' Brokers, he has close con¬
with

many

institutional in¬

Mr. Wehmann,

the partner who

tacts

vestors.

heads

the

new

firm's trading de¬

partment, leaves Lewisohn & Co.
after having been in charge of its
trading division since last year.
Prior to that time, he spent many
manager

as

years

of the trading

department of Tucker, Anthony &
Co., where he became well versed
in

utility

in

and

industrial securi¬

He is active and well known,

ties.

corporate security traders' cir¬

cles.

developed and had
years in charge
arbitrage of Lewisohn &

Orchin

Mr.

company

men's

Louis Loan

St.

and

His

Company, Metals Reserve Com¬
Defense Supplies Corpora¬
and

Opens

(Continued from page 3483)
partment as well as the trading

tion

pany,

stockholders and the entire hold¬

1920

New NYSE Firm,

Minton & Co., of which he

committee.

nance

On

of

Trustee, Governmental Re¬
Institute, St. Louis; Mem¬

merce;

ber

Chairman, War

Disposal

Kafb, Voorhis & Co.,

was

Chairman of the Bank Division of

Currency

in

been

the

of

Co.

with

several

for

Previously, he was associated
Cullman
Brothers,
after

Agency

of
the
Reconstruction
Finance Corporation. After serv¬

merchants

three years in this position,
in
August 1940, he was made
Executive Vice President and Di¬
rector of the Defense Plant Cor¬

company's one subsidiary, Timely
Stores Incorporated, operates re¬
tail
stores
in California
which

change

principally men's and boys'
clothing and accessories.
Outstanding
capitalization
of
the company consists of
140,000
shares of common stock, $10 par

previously

ing

construction

21, 1896, the
of Jerre Hartwell and Ellen

Jonesboro
son

He

is

Yards

Washington, D. C. The follow¬

positions, such as assist¬
cashier, cashier, etc., in banks
Arkansas and Missouri, from

ant

poration, a subsidiary of the
Mr.

Stock

Snyder took

interest

banking syndicate
offering to the public
today (Thursday) 90,000 shares of
Timely
Clothes,
Inc.,
common
stock, $10 par value, at $16.50 per
share. The shares, which are being
offered to the general public for
the first time, represent part of
the
holdings of two individual

connection,

this

manager

the

Snyder entered the

In 1920, Mr.

banking
with

Chief Justice of the United States,

office

active

military assignments due to duties
in Washington as Executive Vice
President of the Defense Plants

National, all

retiring

cial act by

summer

Department, and the same
received promotion to
Colonel, Field Artillery Reserve,
and was on duty as Chief of Staff,
102nd Division, during the Fourth

Secretary of the
Treasury, who yesterday became

of

Was
staff

year

National

"This

to

souri

strength and wisdom to meet the

The

June 1924,
Major, Field

commander of the 381st
Field Artillery Regiment. In May
1939, was elected President, Re¬
serve
Officers' Association, Mis¬

National

that God

entrusted

every sum¬

Reserve,

and

the

pray

honor¬

with :U. S. Army as instruc¬

banks

"John
most

the

juid imagination of the American

We

I

The

high productivity of
the American
worker, the daring

system

dollar.

American

the

States in

received

and

various

convinced that his policy will

am

people earned but did

P9* spend during the

voir

our

him, the Treasury will
every front the integ¬

on

of

in

currency.

our

this energy are many—

our

itiative

in

"Under

is

We

try
ing

safeguard

confidence

sustained

for

1919,

able

has

given ten
service to his
country. His record shows that
he knows the absolute necessity

vestment in the world—U. S. Gov¬
ernment

success¬

a

devoted

of

years

rity

With this high level of civilian

He

business.

ate

the United

Returned to
June

course

the

of

Di¬

camps as

and

council

Athletic

Artillery
Reserve.
graduate of command and

the

make

Division

as

Headquarters Staff, 32nd
Division,
Rengsdorf,
Germany.
rector,

Field

States

can

to

In May 1931, received pro¬
motion
to
Lieutenant
Colonel,

contribution

United

1918

September

ment.

America,
re¬
cently said —
"The greatest
that

in

Armies.

S.

and attended
summer camps as commander of
the 407th
Field Artillery Regi¬

time goods is

practically complete.
This conversion was accomplished

Promoted

U.

and

Captain, Field Artillery. From De¬
cember
1918, to June 1919, in
Army of Occupation in Germany.

Artillery

peace

perous economy.

French

was

tice, in giving

prosperity of the world is to keep
America
strong and prosperous
and the advocate of justice in the

stable and pros¬

the

decorated by both

was

tor of field artillery. In

country may quickly complete its
transition from war and effect the
a

sectors. He

tended

Treas¬

hopes to employ in order that the

reconversion to

at the front and served in five

mer

ury

he

1918,

commissioned

lows:

ing

November

In

discharge, whereupon he was
Captain, Field Ar¬
tillery Reserve.
After the war, Mr. Snyder at¬

fol¬

as

was

Served

O. Max Gardner Speaks

most fortunate in having

am

these fine

capacity.

Mr.

3517

in

Finance Corporation

Washington,

concurrently
as

Re¬

D.

from

C. He served

1940

to

1944

special assistant to the Board
the Reconstruction

throughout the United
Alaska and Hawaii. The

States,

sell

Corporation in Washing¬
ton. In 1943, Mr. Snyder became
Executive Vice President of the
First National Bank in St. Louis.

business connections
in St. Louis were: Vice President

Some

of his

Hotel; Di¬
rector, Coronado Hotel; Trustee,
Congress Hotel; Trustee, Senate
Apartments;
Member, Advisory
Committee of the Reconstruction
and

Director,

Chase

Member,
Advisory
Council
Secretary " of
Commerce;
Member,
Advisory

Finance

Corporation;

many

&

years

Co.,

both

with Adler,
Stock Ex¬

firms.
He will be the
partner in charge of arbitrage for
the new firm and its clients.
Formation of the new firm was

reported

the

in

"Fi¬

30th.

nancial Chronicle" of May

value.

AM Powell Joins

Kobbe Gearharf Offers

C. E. do Willers t Go.

of Directors of

Finance

serving
Coleman

An

issue

capital

of

stock,

99,000
par

10

shares

cents

of
per

share, of Radio & Television Corp.
is being

offered to the public by

Kobbe, Gearhart & Co., Inc.

offering

is

price

Proceeds will

$3

be used

per

The

share..

to acquire

"Brunswick" for
television re¬
Research and
Development ceiving sets and radio and phono¬
Branch,
Quartermaster
Corps, graph combinations and for addi¬
U. S. Army; Director, St. Louis1 tional working capital.
the

trademark

use

on

radio

and

Willers

de

E.

C.

Radio & TeL Stock

Co.,

&

1201

Broadway, New York City, mem¬
bers New York Security Dealers
Association, announce that
L.

Powell

with

the

has become

firm

served

Army
was

as

in the trading de¬

During

partment.
a

war

he

the U. S.

Air Corps. In the

past he

of the Stock Trad¬

ing Dept., for Wm.
Co.

the

captain in

manager

Alfred

associated

L. Burton &

THE COMMERCIAL & FINANCIAL CHRONICLE

3518

Thursday, June 27, 1946

Employment Situation

National Reconversion Policies and Developments
the
of

(Continued from page 3483)
most comprehensive measure
the total output of the nation,

and includes both goods and serv¬

ices,

from

fell

peak

wartime

a

annual rate of $206

billions in the

second

1945

of

quarter

to

about

the fact that the disposable income
of individuals was

counteract

large decline in the absolute, it
represents a drop of little more
than 10% from the wartime high.

shorter

this decline has since been halted,
in

and

segments

some

are

we

again on the upgrade.
another

To make

in

consumer

occasioned

power

hours

overtime

of

work,

less

shifting of

pay,

by

of

occupa¬

tions, etc.
But

is

planation.
sumer

ble

the

not

The

entire

increase

goods

occurred

in

con¬

In

comes.

other

incomes

of

in¬

a

words,

consumers

below the levels

substantially more for nondurable
first reached in early 1943. These, goods than they had both before
and during the war.
as you all realize, then represent¬
This upward
ed an exceptionally high rate of shift was probably one of the most
economic activity.
important factors in maintaining
It is true, of course, that prices a high level of economic activity
after V-J Day.
rose during the war and that there
has been
V-J

further increase since

a

Therefore

Day.

the

above

figures, which are in terms of cur¬
rent dollars, somewhat overstate
the extent to which the physical
of

volume

production

maintained.

has

been

Yet, after allowance

The

manifold, but
only a partial explanation can be
found on the supply side.
Many
types of nondurable goods which
were
in short supply during the
reasons

became

war

to

been

drawal

1946 has been

duction thus far in

about one-half larger

notwithstanding
of

culties

basically

adjustment,
need not be discour¬

postwar

we

aged about results to date.
Why

No

Pronounced

Production

Why has the decline in produc¬
been
less pronounced than

tion

had feared? Let us examine
three
major
markets
into

many

which
flows

gross

national

Government

of

the

product
purchases,

The

tled to

At

our

the

machines.

war

other

industries

extreme

that

had little

have

or

physical reconversion problems

no

Government

—meat

and

packing,
publishing,

On

the

demand

aggregate,

compared

as

with pre-war we are now produc¬

generally

ing

levels.

relatively high
despite the
lags in output of many in¬
This

known

dividual

at

is

so

commodities

which

are

cared

for

by

GI

heavy purchases.
to

save

for

no

issues,

Also, the

patriotic

The delays in

increasing civilian

should

not

have

been

unex¬

been

produced

is

of

itself

consuming process.
during the war—when the
-

of

demand

was

an

over-riding

—it took

more

for

a

consideration
was

rolling

on

That there

Reconversion
was

war's

to be

a

Policy

tremen¬

goods
apparent
a loss of

consumer

end

was

ians for

whom jobs

must be pro¬

But

off workers.

laid

counteracting move¬
ment started, as trades and serv¬
ices began to hire in considerable
again

a

numbers the workers who had not
been

available

Other

wartime.

them

to

during

manufacturing

industries, and construction, also
provided added employment. The
net

result

of

these

movements

have been

we

we

had to fill the

pipelines,

when

output of the wanted
goods—then airplanes, tanks, ri¬
tion

to

the

aggregate

volume

of

output which includes goods of all
kinds whether finished

or

not. The

physical problems of reconversion

employment

business

purchases

of

With

smallef than

and

without
it would

the

easing of many war¬
controls, and free consumer
spending, prices have moved
time

up¬

ward at
last

accelerated pace
since

an

August.

Price

is

adjustments

not, of
course,
accomplished
without
some friction.
Many communities
which had been

part

engaged

faced

with

were

wholly

in

or

dividual

workers

difficult

and

war

to

were
wide¬

Many in¬

had

to

readjustments

transition from

in large

work

war

immediate

spread unemployment.

make

in

the

peace em¬

ployment.

adjustments

to

or

take

for

many

account

of

subject to control—such

real

ad¬

in costs. In those few
areas

vances

not

approved

estate—the

upward

as

in

pressure

has exterted its full effect and the

price rise has far outstripped that
in controlled commodities.

Production
which

will

controls

is

the

key

factor

determine when price
be

safely removed. If
the speculative factors in the cur¬
can

situation

rent

should

become

prices will at some
dominant,
point outstrip consumer willing¬
ness
and ability to buy, and the
sequence will end, as previous ex¬
perience has shown, in a sudden
and sharp deflation.
I

discussed

have

of

reconversion

broad

national

im¬

portance, those which affect

peo¬

ple in all kinds of economic
tivity and all regionThere

ac¬
pre

others, of course, which are gen¬
erally recognized, and still omers
which differ in

nature depending

particular circumstances of
geography or climate.
Mr. Wyatt
has presented the housing prob¬
lem, which governs the develop¬
upon

ment of the construction industry

Unemployment now stands at a
figure about equal to the extent
increase

the

been

items

back at

now

in

the

in the immediate future.

civilian

Agriculture
force; that is, between
Turning for a moment to agri¬
is, however, culture:—farm population and in¬
at present a considerable number
come trends, and the forces shap¬
of persons normally in the labor
ing these trends, will determine
labor

and 3 millions. There

force who

actively
more,

are

neither at work

seeking work.

there is still

a

nor

Further¬

large number

of veterans yet tq

As

these

enter

be discharged.
actively into job-

seeking, it is evident that to pre¬
well in advance, as was
are less
complex, and the time re¬
vent an increase in unemployment
capital
income to workers who during the quired to gain full scale produc¬
goods, and consumer purchases.
substantially more jobs will have
war had benefited from overtime
tion is thereby shortened. Never¬
After V-J Day Government
to be providedNfchan were available
re¬
pay
and
maximum
production. theless, there was bound to be a
on V-J Day.
quirements dropped sharply. Total
This combination, and the possi¬ time lag.
Government expenditures are now
A concomitant of the drop in
bility of widespread unemploy¬
The production situation in the
only about 40% of what they were
ment, posed three problems in re¬ reconversion industries—in terms empolyment which occurred in
prior to V-E Day.
major segmentsj; of the economy
conversion policy at the outset:
of
supplying to product-hungry
Some of this decline, insofar as
after V-J Day
y^fas a reduction in
1. Establishment
of
a
consumers the finished goods they
high
total market demand is concerned,
weekly ea^nl^gs* caused by re¬
want and need—has been of ne¬
level
of
production
of
has been offset by an increase in
ductions iiijffilirs worked and in
peacetime goods as quickly
cessity one of gradual adjustment,
what we technically term private
premium payments, and by shifts
and the record is still spotty. But
as
possible.
in jobs. Thi§ threatened a consid¬
capital formation — that is, ex¬
it is clear that we are now at the
2. Adjustment of wage rates
erable loss of consumer income.
penditures for such things as new
point where an expanding volume
to
compensate partly for
Pressure
plant and
equipment,
and
for
consequently developed
of goods can be expected to move
reduction
in
take
home
commercial structures, or for resi¬
toward andngrease in basic wage
from the production lines, through
dential housing. Even though sup¬
pay.
rates, and, by A$ril, straight-time
the channels of distribution, and
3. Continued
ply problems have been a severe¬
control
over
hourly earnings |n manufacturing
into the homes where they
are
rose between 4 and 5%.
ly limiting factor in this capital
Notwith¬
prices, to prevent skyrock¬
needed.
formation segment, the recovery
eting in a sellers' market,
standing
this tendency, weekly
has
raised
dollar
until the supply of goods
expenditures
earnings were then still less by
Labor Disputes and Parts
from an annual rate of $7 billion
7%.
began to approximate de¬
Shortages
a year ago to $15 billion
mand.
at pres¬
Total wages and salaries in the
On balance, the trend of ship¬
ent. In 1939, the rate was $10 bil¬
Reconversion policies aimed at ments of finished
first
quarter of the year were
goods has been
lion, and even allowing for the increasing
down about 12%.
production have gen¬ encouragingly
upward,
though
higher level of prices, the extent
erally been in the nature of de¬ there has been a marked diversity,
Since that tim^ the industrial
of recovery in a year's time has
controls, stemming from the Ad¬ in general related to the degree to disputes which cut earnings in
been impressive.
ministration's view that private which an industry has been af¬ manufacturing during the period
If we add to this increase in
enterprise has the direct respon¬ fected
been
by
labor
disputes
and have
settled, and higher
capital expenditures the rise of sibility for satisfying demands for shortages of materials and
parts. wage rates are going into effect.
$3 billion in expenditures for con¬ goods and services. In some areas,
Thus, in the consumer durables This, with rising production, will
sumer
durable
goods — automo¬ notably construction, it has been field,
radios, alarm clocks, vacuum result in an increase in manufac¬
biles, furniture, electric appli¬ recognized that for best results cleaners, washing machines, and
turing payrolls, which in turn will
ances, etc.—the combined increase where critical shortages of mate- electric irons are
currently being contribute toward the rise in in¬
amounted to $11 billion at annual grials
exist, the temporary reten¬ produced at or above pre-war come payments by private in¬
rates.
This partially offset the tion of Government controls will levels.
In contrast, refrigerators, dustry.
drop of $53 billion in Government most speedily and usefully chan¬ electric
Pric^gStructure
ranges, sewing machines,
outlays, but was far from suffi¬ nel the scarce items where they and watches are still at a rate con¬
In
large measure the lasting
cient to compensate entirely.
are most
urgently needed.
siderably less than half the pre¬ character of
%e benefits to be
The
main
objective of
such war volume.
derived
from "rising
production
Consumer Expenditures
policy has been the replacement
In the nondurable fields, pro¬ and
sustained ;^iigh employment
Accordingly, a much larger re¬ of production for Government use duction
advances have been even will depend upon the soundness of
—

was

have been without controls.

problems

These

of

stage analogous to early 1942

when
and

pres¬

material

war

than two years be¬

In recent months
in

a

Even

fles, and ships—was low in rela¬
of

dous demand for
after the

ly

time

pres¬

reasons

doubt much

the level of V-J Day.

long¬ fore war production
made a big scale.

having been relaxed, the civilian
population tended to spend more
freely.
Problems

Thus the number of civil¬

force.

ent

pected. Gaining large volume out¬

servicemen, re-establishing them¬
er

taken

had

who

that

put of goods that have not recent¬

former

selves in civilian life and

housewives

jobs, withdrew from the labor

war

far from

meeting demand at pres¬
rates of production.

widespread

goods, either as incentives to in¬
creasing the output of bottleneck

here

the

were

substantial, the rise

have

principal buyer.

In

price

increases

by the same amount. Concurrent¬

industries

Production Now at High Levels

living
costs
was
demonstrated
during the war. Although

ly, a total of nearly 6 million
youths of school age, older people,

ment moved out of the market as

sure

side,

labor force

civilian

paper,

from

important since it

was

the

increased

and

the

are

with¬

trade channels.

nary

sure

Decline

the

effective.

left a larger proportion of current
production to move through ordi¬

than in 1939.

additional evidence that
the many diffi¬

is

This

completely, and produc¬
equipment disman¬
make way for the produc¬

tion lines and

increas¬

in

already existing demand

become

the market

It
appeals, moreover, that the
physical volume of national pro¬

are

available

was

end

allowed

clearly valid.

stopped

production

production volume since the war's

is made for recent price advances,

after V-J Day is

civilian

ing quantities after V-J Day and

the conclusion that

production has
maintained remarkably well

ordnance

printing vided has risen only about 2V2
manufactured million.
Employment, 011 the other hand,
out of dairy products. These experienced
spent no drop in demand as the Govern¬ declined after V-J Day as the war

time

consumer

at

comparison— moderately declining
given

where

ex¬

expenditures for nondura¬

during the first phase of postwar
uct

shipbuilding,

—

tion of

this

readjustment gross national prod¬
did not fall

declines

purchasing

indicates that

Recent information

o n

Day came last year,
the total labor force—military and
civilian—stood at 66 V2 millions, of

relatively well plants and the like, plus much of which 12 millions or 18%, was ac¬
maintained
our
by such factors
as
expanded capacity for air¬ counted for by the armed forces.
mustering-out pay to veterans, tax plane production. There are others Since then, 8V2 million men have
where the physical problem of re¬ been released from military serv¬
reductions, and the upward ad¬
justment in basic wage rates in conversion has been impressive— ice.
However, their transfer into
many industries.
These helped to the
consumer
durables
plants the civilian labor force has not

billions in the first quarter
of this year.
Although this is a
$182

t i

V-J

When

-

farm

the

future.

the

of

market

segment of
both to the individ¬

The importance of this
the economy,
ual
as

to

and

business

the economy

to

whole, warrants

a

attempt

an

appraise those forces.
In

of

appraising the buying power
farming population, there

the

three

are

separate
For

considered.

periods to be

the

future

near

supply-demand situa¬
implies a level of farm in¬

the

strong

tion

and

come

buying power even ex¬

ceeding the wartime peak.

of farm products for
is projected at a
level
about equal that of 1945.
This volume is hardly sufficient to
meet domestic demand and fill the
The output

the present year

urgent needs of foreign mar¬
Such favorable conditions

most

kets.

indefinitely—an

continue

not

can

relaxing of present ten¬
dencies is inevitable.
ultimate

tion

intermediate

the

For

therefore,

the

is

which

an

existing

of

products,

a

two-thirds

about

legislation

floor under the
the major agricultural
which account for

puts

prices

period,

important considera¬

of

total

the

This legislation obligates
the Government to maintain these

output.

prices
for

90% of parity
for a period

of

cotton)

(921/2%
of two

January
has been
by the President or by
Congressional
action
to
have
following

years

after the

war

the

emergency

declared

ended.

Since

this

declaration

has

not

yet been made, the guarantee ap¬

plies at least through the calendar
1948.
While the immediate
outlook appears favorable, so that
these
supports
should not be
year

needed, there is no assurance tha
marked, but in special areas the price structure. Upward pres¬ Government aid will not be neces¬
particularly men's clothing — sure on prices has been severe sary
for the very marked
before
the
end
of tne
pected as
production
incentive
programs during the transition and will con¬
rise
in
consumer
guarantee period.
purchases
of —as the
guaranteed market for through price adjustments have tinue for some period ahead until
It
has been
estimated that
food, clothing and other non¬
tanks, guns, bombers and warships been instituted by the OPA and production catches up with de¬
reduction from present farm prices
durable goods.
These purchases
gave way to the private market CPA in an attempt to spur produc¬ mand.
This is the basis for con¬ to
the support levels, with cor¬
surpassed expectations. Consumers for household
goods, clothing, and tion to meet demands.
tinuation
of
the
price
controls
lifted their expendituree on such
responding declines in unsuppor pleasure
cars—has
been
kept
On the labor side what has hap¬ which are just as essential now as ed
commodities,
would
goods to an annual rate of over within
reasonable bounds.
they were during the war, to pre¬ gross farm income by about 20Jopened?
With
production
re¬
$75 billions, as compared with the
The impact of the reconversion duced and the armed
forces being vent a rapid spiraling of prices This would still leave gross
$60-billion rate at the
duction

in

total

national

gross

product would have occurred had
it not been

time

war

ended in

The

large volume of

expenditures

the

Europe.
was

due




by

production

chasers.

consumer

part

to

sag

problem
trom

in

for

private pur¬
in output ex¬
this transfer took place

The

are

be

has, of course, varied
industry to industry. There

some

used

plants which

can

never

fully in civilian produc¬

more
—

rapidly

demobilized, the number
employed has declined
and the aggregate incomes of those

and

of persons

costs

at work has been reduced.

trols

with

effects.
The

all

its

disastrous

nj~

come

and

effectiveness
in

limiting

of price

the

con¬

advance

of

39

above any year

more

than

average.

prior to
19o -

double the

However, were

sue

lnrOlTlC

Number 4502

Volume 163

would

doubtless

THE COMMERCIAL & FINANCIAL
CHRONICLE

subsequently be

seriously affected.

more

Of most

importance, undoubted¬

ly, is the longer run period. Sup¬

port prices offer only^a stop-gap.
Implicit in the fundamental solu¬
be

must

tion

continuation

a

(Continued from

generally.

page 3481)

'

Macomber
each

to

incited corporations," Mr.

Ano

of

relatively full production and high
income

Merger of Mellon Securities Corp. Into
First Boston Corp. Voted by Directors
said,

other

the
are

International Trade

Sharing the

spotlight with do¬
mestic industrial and agricultural
developments at present is the
field
of
international
relations.
There has been

of

ing

vivid reawaken¬

a

interest

in

foreign

com¬

securities business

largely complementary rather

than competitive in their

United

The

States

entered

the

The

Boston Corporation has

no

in

trading

nation

in

the

expanding postwar trade,
not only as a means of maintain¬
an

maximum

domestic employ¬
ment and production but also as a
ing

of the most economical

means

of

sales

curities

resources.

our

use

position in economic affairs

our
car¬

offices

outlet

is

in

of

Mellon

and

Se¬

adjacent

to

highly im¬

a

dent of

tion has decided to retire from the

investment

banking business,

un¬

der the plan of merger most of the

key officers

of

Corporation

will

with

Mellon

The

Securities

become

First

associ¬

Boston

Cor¬

poration."

a

the

What

the

are

prospects for
expanded foreign trade? The
cumulated

demand

countries

for

goods

not obtainable

to

port

trade

ahead.

during

Some

of

our

period

being;

certain to remain in

short supply.

The general revival and
sion

of international

many

been

cases

trade

held

of difficulties

cause

con¬

of various goods

case

in

expan¬

has

back

in

be¬

harmoniz¬

countries

into

patterns.

But the prospects for a

working

sound

expansion of foreign trade
sustaining basis are bright.
The
Anglo-American
Financial
Agreement and the establishment
on

a

of the

Bretton

provide

tain the

developing
trade

on

for

world

high level.

a

Before

foundation

sustaining

and

the

Great

war

Britain

customer, as well as the world's
largest importer. The approval of
the proposed credit of $3,750,000,000 to Britain will be reflection of

interest in

our

promoting British

recovery,
not only because the
United Kingdom has traditionally
been

best single

our

because

it

keep the

area

broad

customer but

possible.

as

is

in

interest

our

to

of free enterprise as

It must be remembered that for¬

Members of the executive
will

Messrs.

com¬

include in addition to

Pope and Addinsell, James

Coggeshall, Jr., Eugene I. Cowell,
Nevil Ford, Aubrey G. Lanston,
Duncan

R.

Linsley,
Jr.,
George

Potter,

William H.
D.
Woods,

Vice-Presidents of The First Bos¬
ton

Corporation,

and

Hugh

MacBain, who will become

a

D.

Vice-

The

First

Boston

Corporation.
Messrs.

Lanston

additions

and

the

to

committee, the others

MacBain

executive

being

The

of

committee

First

Boston

of

Directors

The

First

Boston

of

addition

F.

be

Cannon

A.

HI,

Ladd,
of

Presidents

now

and

Boston

First

The

Vice-

Corporation and six officers of the

Mellon
Securities
Cor¬
poration. The latter are, in addi¬
tion to Mr. MacBain, A. B. Brushpresent

aber, George J. Gillies, S. David¬
son

Brushaber,

MacBain,

Herron will

Messrs

Buskirk.

Van

B.

Arthur

Land, and

James N.

Herron,

Gillies, and

be Vice-Presidents of

Corporation. Mr.
Thomas T. Coxon, Vice-President
of Mellon Securities Corporation
The First Boston

does not

plan to join the enlarged

organization of The First Boston
Corporation.
Mr. Land will not
on the extension of dollar credits.
be
engaged actively in the se¬
A large volume of dollar assets has curities business.
Mr. Van Bus¬
been accumulated by various for¬ kirk will be the only representa¬
eign
countries
in
the
United tive on the Board of Directors of
States.
The war itself made it The First Boston Corporation for

substantially
sources.
our

dollar

their

to

With

the

conversion

our

for

war

purposes,

we

use

eliminated for export many prod¬
ucts which* would ordinarily have
found their way to foreign mar¬
kets.

At the

same

metals and other

present stockholders of Mellon
Securities Corporation.
the

of

of

industries and the

materials

re¬

time we bought

the

of

directors

Other

the

■

merged

corporation will be Harry M. Ad¬
dinsell,
Charles
F.
Batchelder,
James Coggeshall, Jr., Eugene I.
Cowell, Nevil Ford,
Hambuechen, Arthur

Joseph

W.

B. Kenney,
Parker Kuhn, Aubrey G. Lan¬

R.

difference

worth

of

Corporation

other

out¬

now

repre¬

between

Mellon

Securities

June 30, 1946 and
112,500 shares of

on

non-voting

class

which

will

be

share

book

A

capital

valued

value

The

preferred
its

per

The

First

now

Boston
Corporation's
standing capital stock

30.

stock

the

at

of

out¬

of June

as

will

stock

be

value of $100

par

a

share.
In

CHICAGO, ILL. — Gilbert H.
Coultry, member of the Chicago
Stock Exchange, has become asso¬
ciated with Leason & Co., Inc. 39
South La Salle Street. Mr. Coultry

has been

active

as

an

individual

member of the Exchange.




First

The

of

directors

Boston

dent of Mellon Securities

of the merger,

Under the terms
the

of

owners

Mellon

Securities

Corpora¬

of

who

are

Mellon

plus
31/2%

an

will

class

"For

time

some

have

we

been

come

active

more

the

in

markets

municipal bonds and seasoned

securities.

porate

Such

would have involved the
of

specialists,

trading

offices

tional

believe that

in

amount

addi¬

cities.

cumulative

non-voting

has

In

became

1933

Rich¬

succeeded

was

of

Mellon

headed

then.

as

Securities

In

the

1935,

since

company

its entrance into

on

the

underwriting field, Mellon Se¬
curities Corporation increased its

capital stock from $250,000 to $5,000,000.
The

late

uncle

of

Scaife,

Andrew

Richard

was

from

Mellon,

and

Mrs.

Mellon

after

official

States

Great

K.

Corporation

retirement
United

W.

Director of

a

Securities

his

life

he joined
from

accomplished, if approved by the
shareholders, through a merger
with The First Boston Corpora¬

tion, whose existing facilities and
with

services

blend

provide

and

ours

completely

a

rounded investment banking busi¬

and

his

ness.
move

stockholders

the

on

of

part of the
Securities

Mellon

Corporation shows continued con¬
investment

combined

the

and

Cor¬

continued

being

are

capital

Securities

Mellon

of

poration

The

banking.

enlarged

in

First

Corporation to enable the

capital needs of business to
served better through provid¬

future
be

ing

more

comprehensive

nation¬

facilities."

wide

death

8,000 stockholders.
The First Boston
Corporation,

about

adopted its present title in

1934, traces its history back to The
First of Boston Corporation which

originally was an affiliate of The
First
National Bank of Boston,
and

the

to

investment

pioneer

banking firm of Harris, Forbes &

which

Co.,

Chase-Harris
when

the

became

later
Forbes

Corporation

merged with the Chase Se¬

Corporation, formerly an
of
the Chase
National

curities
affiliate

Many of the people now

identi¬

fied with the management

of The
origin¬

First

ally

Boston
were

Forbes
Boston

&

Boston

Corporation

associated with Harris,
Co., or The First of

Corporation.

Executive

offices

Corporation

and

Boston.

of

The

are

in

First

New

Other offices
Buffalo, Chi¬

Corporation.

Series

outstanding bonds
$5,285,600 at 3V2%.

C

New bonds and convertible

tificates
funded
for

8

issuable
at

50%

for

cer¬

interest

of amount

owing
for Series A $792,000

years

3%.

at

Corporation

prominent in the field of
industrial financing while, up to

has been

firms have

term

to

ceed

K

tificates
funded

issuable
at

50%

for

of

cer

¬

interest

amount

for 8 years for Series C

owing

$1,479,900

exchanged for the

July

been among

leaders for many years in

the

the ag¬

3%

new

be

bonds

(or such later
date as El Salvador may specify),
when
held in amounts of $100,
$500 or $1,000. After the exchange
period expires, the holder of con¬
vertible

titled

1, 1950

certificates

to

cash

a

rata

pro

will

penses)

lying

of the

the

be

en¬

for his

payment

portion

of the proceeds

resulting from the sale

The

C 1

3%

(less

bonds

certificates,
on

offer will

ceptance

if

able to do

ex¬

under

the

plus

the 3% bonds.

remain

for

open

ferred

advis¬

it considers it

i-

n o m

com¬

mittee,

an¬

here

nounced

Guy T. O. Hollyday

today.
C.

John

Thompson
vice

for

nated

certificates

of

interest

of

de¬

Certifi¬

(Scrip

issued under the 1933 Plan

with respect to bonds

offered

cash

a

In

policy,

the

line

with

its

Council

recommendation

as

on

at

sur¬

take place at the

convention

anual

announcements

here this

30

Salvador.

nouncement

no

purchase

a

bonds

new

Reserva

de

de

The

published an¬
states that copies of
transmit¬

of

the offer and

letters

tal

obligations may be

for

dollar

obtained from the New York agent
of the-Fiscal

Agent—The National

of New York, Corpo¬

City

Bank

rate

Agency Department,
"A,"
20 Exchange

New York

Cincin¬

in

Oct.

and

and

1

2.

made

were

morning at the mid-year

meeting of the Association's board
of governors at

the Palmer House.

include

committee

Sen.

L.

Frank

Wilkinson, Kansas City; Frederick
P.

Logan,

Champ,

Utah;

L.

W.

King, Washington, D. C., and Jo¬

seph M. Miller, New Orleans.
Mr. Hollyday has long been ac¬
in

the

and

is

director

affairs

Association's

Randall

of

H.

Hagner & Company, Inc., Savings
Bank of Baltimore, Loyola Fed¬
eral

and

Savings

Associa¬

Loan

various real estate

and

com¬

Baltimore.

He
is a
trustee of the Citizens Planning
and Housing Association of Balti¬

panies

in

director of the Council of
of Maryland and Dela¬
and
a
vestryman
of the

a

more,

Churches
ware

of the Redeemer. He is a

Church

past president of the Real Estate
Board
of Baltimore and former
chairman

of

ation

the

of
of

Division

the

Estate

Real

Builders

Home

National

Associ¬
He

Boards.

the

Latin
School in Baltimore and received
educated

was

a

B.

A.

from Johns Hop¬

degree
War

S.

he

was

machine
Cavalry.

he

ficer
of

Boys

University. During

tenant,
U.

at

was

of

the

the Coast

the

the first

first

a

lieu¬

troop, 11th
During the last
gun

senior patrol of¬

Baltimore

regiment

Guard. His hobby

is

trout fishing.

Kurz-Kasch Stocks

general

makes

to

for the

Central

Banco

is

elec¬

to

tantamount

are

Sept.

Offered at $4 Per Sh.
Smith, Hague & Co. of Detroit
F. H. Koller & Co., Inc., of

offer.

Fiscal Agent

He

of Series C,
payment

of their face amount

render.

nomi¬

was

president.

which will

war

so.

Holders

ment

f

o

organiza¬

Republic, however, reserves the
right to extend the time for ac¬

El

nd,

a

chairman
the

World

15%

of

1

e v e

kins

are

-

1 e y of
Chicago, A. D.

Fraser

acceptance until Jan. 1, 1949. The

cates)

sue

Byron V.

a n a

tion

Convertible certificates may
until

for

1946 47

e

tive

New bonds and convertible

Base
Place,

and

New York, are
issue

offering jointly an
75,000 shares of common

of

stock, par $1, of Kurz-Kasch, Inc.,
Dayton,
Ohio, producers of
plastic molded products.
The of¬
fering price is $4 per share.
Kurz-Kasch, Inc., and its prede¬
cessor
company
have been en¬
of

gaged in the plastic molding busi¬
ness
since
1922
and
numbers

its customers many of the
country's
outstanding
manufac¬
turers
of
industrial
electrical
among

15, N. Y.

parts, radios, and household ap¬
pliances. Present orders on hand
aggregate more than $2.5 million.

IS

With A. M. Kidder So.

Proceeds of the current financ¬

Captain
associated

ing will be used in part to dis¬
charge bank loans and Federal

Wall

obligations. The balance, amount¬

New York City, members
of the New York Stock Exchange,

to be used for additional working

Bledsoe

A.U.S.,

Securities

t h

Other members of the nominating

princi

pay amounts of

is

Bank of New York.

Both

bonds issuable for princi¬
pal amounts of outstanding bonds
for Series A $2,475,000 at 4%.

present

which

Association of
America

The

New

for

nominated,

Mort¬

nati

issuable for

O.

Title

Company,

been

33rd

(Continued from page 3476)

bonds

T.

the

Bankers

nations

New Debt Plan

New

of

Trust

president
of
the
New
Jersey
Realty Co. and New Jersey Realty
Title Company of Newark. Nomi¬

El Salvador Announces

matured interest

The First Boston
Corporation has 450,000 shares of
capital stock outstanding, held by
At

the

tion's

at 3%.

"This

of

gage

between his retirement

public office

and

Baltimore, has
for president

nating

the only business organization

was

ILL.—Guy

president

Guarantee

to

and,
previously,
the Treasury.
This

of

CHICAGO,
Hollyday,

as

Ambassador

Britain

Secretary

We

objective will be

our

gregate annual amount of corpora¬
preferred stock tion securities underwritten and

of

Mellon

who

Corporation by Frank R. Denton,
previously
Vice-President,
who

step

addition

and

other

cor¬

a

receive

present owners of
Securities
Corporation;

President.

K.

President

considering an expansion of our
present activities in order to be¬

A

the

first

ard

Mellon,

Hollyday to Be Pres.
Of Mortgage Bankers

tion

112,500 the last year or two, The First
capital stock Boston Corporation has been en¬
which will be non-voting as long gaged chiefly in the underwriting,
distribution and trading in utility,
as it is held by Richard K. Mellon
and his sister, Mrs. Alan M. Scaife. municipal and Government bonds.
Corporation

shares

K.

tion, in Pittsburgh, said:

Mellon

Corporation.

Securities

explaining reasons for the
Frank R. Denton, Presi¬

war, and thus provided many

Gilbert Coultry With
Leason & Company

the

merger,

York

materials of

its

of

one

in 1938.

ston, Duncan R. Linsley, James A.
are
maintained in
for¬ Lyles, John R. Macomber, John C.
eign countries—particularly those Montgomery,
Louis
G. Mudge, cago, Cleveland, Hartford, Phila¬
m
Latin
America—with
dollar James H. Orr, Allan M. Pope, Wil¬ delphia, Providence, Rutland, Vt.,
San Francisco, Springfield, Mass.
buying
power
which
can
be liam H. Potter, Jr., Frank M. Stanand Washington, D. C. The Pitts¬
utilized in our markets.
on, Winthrop E. Sullivan, George
burgh office will be one of the
D. Woods and Adplphe H. Wenmajor offices of The First Boston
zell, all of whom are presently
raw

Corporation's

Corporation
originally organized Feb. 11,
with a capital of
$250,000 by

1931

the

the value of the

Boston

H.

stock

The preferred stock will

funds

increased
present 21 to 29 by the
will

Corporation
the

the

fidence in the future of American

Corporation.

from

capital

and

standing.

cur¬

members of the executive

rently

ability to pay for our ex¬
ports is only in part dependent up¬

add

common

stock

thereby

of

President

are

this

non¬

difference

no

for United States Government and

eign

possible for many countries to

between

oc¬

of The First Boston

name

Edward

this country's most important

was

Corporation will

Corporation.

Woods institutions

firm

a

The

the same positions with the
merged corporation which will re¬

ing the trade policies of individual
smoothly

of

ex¬

demands

export controls will have to
tinue in the

committee

cupy

mittee

the

these

executive

First Boston

bound to

war is

not be met for the time

can

were

appreciable

significant factor in

a

an
ac¬

foreign

which

any

degree during the
be

in

voting there will be

valued at

John R. Macomber, Chairman of
heavy responsibility
the Board of Directors, Allan M.
for contributing to world prosperi¬
Pope, President and a member of
ty by working towards a high
the
executive
committee,
and
volume of foreign trade and for¬
Harry M. Addinsell, chairman of
eign investment.
ries with it

112,500 shares of non-vot¬

Boston

Mellon

Richard

fact that the class A stock is

net

Denton, Presi¬
Mellon Securities Corpora¬

basis of

capital stock of the corporation to
be
outstanding.
Except for the

sent

"While Frank R.

the

on

ing class A capital stock will com¬
prise 20% of the 562,500 shares of

se¬

curities.

ated

Moreover,

First

portant market for investment

world.

We have a strong national interest
in

of

Pittsburgh while the principal

retail

reconversion period as the great¬
est

they

areas

securities distribution.

Pittsburgh which is

merce.

since

The

First

trading division is
largest in the field.
was

determined

June 30 audit figures.

"will

implement
various phases of

in

be

The

351$

with

C.

has

A.

Pinkerton,
become

M. Kidder &

Co.,

1

Street,

in their
was

syndicate department. He
Dominick & Dominick

the

past he was in

charge of

the New York office of Reinholdt

&

to

approximately $100,000 is

with

prior to entering the armed forces.
In

ing

capital.

Gardner

and

was

corporate

New

trading

the

York

Brown

Sons.

manager
for
office of
Alex.

&

With Wachob-Bender Corp.
(Special

to The

Financial

Chronicle)

OMAHA, NEB.—Robert F. Ben¬
der and

Elvin J. Ternus are with

Wachob-Bender

Corp., 212 South

Seventeenth Street.

n

,*! i

r\

THE COMMERCIAL & FINANCIAL CHRONICLE

3520

!'' I'

Thursday, June

27, 1945

—

wn

appropriate agencies

all of the

as

calling for recognition of and pro¬
vision

*

>

(Continued from page 3484)
shipments from this country. An
illustration of this last point is
tinplate, which American mills,
in keeping with past trade pat¬
terns, ship voluntarily to Latin
America and certain other mar¬

For the limited number of

modities

still

there

All

restrictions,

degrees of controls.
subject to export licensing

are

are

by the Department of Commerce.
In

addition,

a
number
(those
exceptionally tight
supply or for which the foreign
demand is particularly heavy) are
under
CPA
quota
limitations.
which

in

are

kets, but are reluctant to ship to
Europe and the Far East, which
are not normally
U. S. markets,
tout where there is a very acute
'

'•

'V

■

These quotas are

need

which exports cannot go.

arising from the -world food

instances

situation.

Where,

clear-cut

a

there is not
sound justifica¬

however,
and

tion for limiting or directing
of

course

export,

the
CPA has

the

with

fere

business

normal

'

ac¬

tivity in exactly the same
>

'»■

way

which

■

normal

business

domestic
to

the

industrial

phasis

on

partment
the

to

Trade

the

of

Commerce

of

CPA

of

of

re¬

many

them¬

export

to

com¬

a

pany's

With

meet

to

es¬

minimum

the

friendly foreign nations.
This statement is reviewed by the
Bureau of International Supply.
The Bureau of International Sup¬

ply through

our

after

review

its

quantities

Exports Division

which

and

feels

I

pointed out in the begin¬
ning of this statement, however,
this does not
is

permitting

to

result

in

materials

that the CPA

mean

shipments

overseas
an

and

drain

undue

equipment

on

which

which are in critically short sup¬
ply in this country. For items in
this category, we have consistently
taken the position that we have
no

choice but to exercise restraints

over

export.

Joint Committee

to

the

Committee

the

Of

end

established

was

war,

Joint

the

Export Controls,
including representatives of the
CPA, the Department of Com¬
merce, the Department of State,
and

on

number

a

ment

of

agencies

other

Govern¬

concerned.

This

Committee

was charged with re¬
sponsibility for reviewing, item
by item, all products which were
then subject to export restrictions.

The Committee

was to decide, on
the basis of analysis of the U. S.

supply situation, which products
might be freed from export con¬
trols without danger to the Amer¬
ican

By the end of
1945, this Committee

economy.

September,

had made arrangements for
plac¬

ing the great majority of items on
a
"free list."
It left, however,
such

items

ered

critical under control.

Since

as

the

end

1945, the Joint
port

then

were

Controls

of

consid¬

has

modities

deliberation of this Committee.
There

which

placed
come

tight.
to be

had

been

supply to be
the free list, have be¬

on

for

earlier

one

These

placed

easy

or
another reason
have therefore had
back under control.

We
expect
to
maintain
the
Joint Committee on
Export Con¬
trols until such time
as the re¬
conversion job is done.
The pol¬
icy of the Committee will contmue to be
the
elimination of
controls

cept
spund

as

rapidly

where

there

justification

them.

■i'-

1



as

possible

is

for

thus

are

three

careful

most

to

or,

process

a

screening operation
it more exactly, a

put
of reducing stated require¬

ments to the minimum

the

with

a

compatible

commitments

obli¬

and

gations of the United States.
With

commitments and obligations of
the United States, you are aware,
of
as

that this

course,

Government,
family of na¬

member of the

a

tions, has assumed important re¬
sponsibilities in connection with

clear

presented
are

like

to

summarize

these

briefly:
1. Historical Precedent—A

with

past

often provides useful information
in

appraising the appropriateness
foreign export quota request.
During the war years, a compari¬
son
with
previous performance
was
not
too
valid, particularly
when the previous period was a
pre-war
period, because of the
of

a

dislocations

economic

caused

by the war.
In the post¬
period, however, comparisons

war

with

pre-war

exports often have

validity.
Even now, how¬
allowance must be made for
changes occasioned by the war

some

ever,

such

particularly enemy
Japanese
textiles),

are

have

been

general

terms, they
nevertheless very real. In the

short

time

cannot

and,

allotted

define

in

to

them

statement

partment

to

them

from the De¬

come

State.

of

I

adequately,
definitive

event, a
in
regard

any

would need to

here,

me

But

the fol¬

lowing may be suggestive of their
character.
As
the

regards the liberated areas,

President

in

his message to
Sept. 6, 1945, said:
directing the Executive
agencies to give full weight to
foreign requirements in determin¬
ing the need for maintaining do¬

Congress
"I

on

am

mestic

and

export

controls

and

priorities.

resulting from

(e.g.,

war damage,
alternative sources
of

stimulated

and

stated:

be in some instances to use
historical precedent as the basis

may

for

establishing

an export quota,
it can be used success¬
Where it is used, it has the
advantage of being easy to calcu¬
late, easy to understand, and gen¬

in

many

fully.

erally it is accepted as "fair" by
the public and by foreign coun¬
tries.
2.

we may

lose

some of

the foundations of order on which
the
hope for world-wide

peace

must

rest.

limit of

We

must

help to the

strength and we will.'
That pledge, made not only to our
Allies, but to the American peo¬
ple, must be kept."
our

With regard to Latin
America,
this Government obligated itself

during

the

treatment"
sential

war

to

to

the

give

"parity

minimum

es¬

requirements of the other

American Republics.
first enunciated

was

This

by

policy

Under-

Secretary of State Sumner Welles
at Rio de

ex¬

The
was

key
as

Janeiro

Jan. 15, 1942.
sentence in this speech
on

follows:

"... The
ernment

policy of my Gov¬
(is) being interpreted by

Tin,

rubber,

raw

copper,

lead, antimony, innumerable <?res
and chemical

materials, hides
skins, cordage fibers, coffee,
sugar, tea, and many other foods,
to mention only a few.
Particu¬
raw

and

larly

those

in

countries

of

people simply
will not work unless they have
something on which
to
spend
their money.
In many countries,
in fact, currency has become vir¬
living

is

low,

No
to

matter

we

In

payment.

very real

a

sense, therefore, the supply avail¬
able to the United States of these

materials

scarce

is

directly re¬
lated to the quantities of trade
and
incentive
goods which we
supply to these areas.
The above

situations where

are

States and benefits derived by the
United
States
is
fairly direct.
There are innumerable other cases
where the causation is difinitely
present but not
vious.

it,

words

are

obviously

get out of it?"

received

used

one

of

Most bene¬

U. S. citizens from
critical

materials

by

indirect

such

export of

ob¬

rehabilita¬

tion equipment to the war-devas¬
tated areas of Europe speeds the
day when these economies will be

economically self-supporting, and
thus

reduces

the

S. of food

U.

and

drain

the

on

essential

other

supplies, not to mention the

eco¬

nomic advantages to the U. S. of
the restoration of peace, order and
economic prosperity in the world
economy.

3.

Impact

on

the U. S. Economy

Each export quota request is

amined

terms

in

the

of

ex¬

urgency

of

essential

civilian

friendly
ment of

the U.

a

economies

of

foreign nations, fulfil¬
specific commitment of

S., support of

U. S. im¬

a

must

be

terms
but
are

measured

not

only

in

the

of

quantity involved
also in the degree to
which we
able to adjust to that
export

drain.

In

port

some

drain

needs

cases,

given

a

strikes

at

ex-

domestic

the

of

highest essentiality
and no readjustment of
domestic
consumption is possible. In other
cases, it is possible to effect read¬
justments of consumption at
home
so
that the effective
impact of
export shipments are not unrea¬

sonably burdensome.
These

constitute

the

general

criteria

employed by CPA in de¬
termining the proper levels for
export quotas.

Goofy Notions on Way
Out, Says Rukeyser
(Continued from

3484)

page

prise system is vastly

more

pro¬

ductive than Marxist and half collectivist systems of

Europe

Asia.

and

The speaker added that

tempo of
ened

progress will

soon

as

as

we

our

be quick¬

stop offsetting

as

U.

S.

economy.

While in most cases the quantity
of a material requested for export
represents

a small percentage of
production, usually less than

U. S.

we

have found that it is im¬

the

demand

During the

this

on

country.
there was

years,

war

the

human

strain,

war

cial
Security
in
a
Changing
World," declared, "must carry a
heavy load through this transi¬
tional period of civilization is to
be perpetuated.
In the circum¬

stances,
foster

ingredients which ex¬
perience has shown strengthen us.

We

should

planners
audits

based

talkers to
honest national

loose
on

bookkeeping in double entry form.
"As
of

a

release

we

example of this type
is

one

in

whicl}

can
go upward and onward,
and make the United States anew

the

land

of

truth will

come

has

as

life,

based

will be

continued

reconversion

true

critical, this

on

period.

into

this

When

it

a

rate

of

8

over

billion

quarter, one would think
that it is of little moment whether
lion

dollar

feet

feet.

As

or

million

matter of fact,

a

a

400

matter

great importance.
We
situation
now
where

of

veryin

are

a

for

States.

Examples of

equipment to rehabilitate

the tin mines of Netherlands East

own

in

country makes
the

fulfillment

dif¬
our

Despite smallness
wise) of an export

requirement for

rial,

a

of

programs.

(percentage
then,

a

critical

mate¬

feel that we
definite obligation to
we

are

Indies, mining machinery for: the

under

copper and lead mines of Mexico.

ercise every precaution in regard
to it,

Peru and Chile, etc. Another sit¬
uation of this character, almost

direct

in

its

benefits

to

a

the out¬
rates

and discussed

Mr.

interest

realistic

banking as

Rukeyser,

career.

return

a new

radio

Broad¬

Mutual

the

over

a

his

on

casting System beginning on June
26

with

Cecil

respondent,

Brown,

"The

Battle

of

war

cor¬

caption.

the

under

Commenta¬

the

tors."

a

ference

the

goods pro¬
politicians

for

than

literally

to

leaves

in
be¬

more

once

receipt

quota is set at 200 mil¬

borad

honesty,

common

on

monetary reformation,

Mr. Rukeyser analyzed
look

is

board

bogus

of

arbitarary edict."

For such commodi¬

have remained

relief to the

a

years

liberalism, based on the economist
Keynes' scheme to run a society
by manipulating money, on the
one
hand, and by robbing Peter
to pay Paul, on the other. A sym¬
bol of a new chapter in American

rather

ties

as

after the

duced

every board foot of lumber which

exported from the country
origin, entirely or in part, to

the
A res¬
and of

for

opportunity

and the ambitious.
toration
of
competition

a

significance.

vigors

we

comes

balance

equipment is provided for mining
or producing materials which are
be

full

the

competitive economic society,

between

delicate

a

board

situation

dilettante

the

submit

and

the supply and demand for most
commodities that even a 1 or 2%
extra requirement was of
great

such

however, it Jg
clear

deliberately

should

we

the

feature

foreign country into

letdown

the other,

on

"The United States," Mr. Rukeyser, who is author of "Finan¬

the

rectly and promptly to the United

equally

and

after the

which

States.

are

hand,

at

however,

scientists.

distinguish between ideo¬
confusion,
on
the
one

East, will inaugurate

which will redound di¬

this

could

considered, for example, that U. S.
production of lumber is currently

cases,

technology

social

logical

people

the

upon

the export

certain

United

and

of

The speaker stressed the necessity
of perspective at this time so we

have

to

the

politicians

ideas

some

In

benefit

creative

young

etc.)

program,

feet per

of

At the same time, the
real ef
fective impact of the export
need

weighed
against the impact which supply
of
the
quantity requested will

port

it is possible to translate an ex¬
port of a given amount of goods

The

iv

mum.

to be beyond average
or at least appre¬

comprehension
ciation.

The

direct and

so

what

processes as

of

th9t

with the foolish notions of goofy

of

quite general in character, in¬
capable of exact measurement,

a

large

the

possible to treat lightly the effect

are

a

so

heavy

the line of causation between sup¬

Benefit to the U. S.—

describe

do

of wage

the accepted means

are

so

screen

the

of

world where the general standard

5%,

Direct

and

hungry,

essential

of

world

need is

demands

them down to the
absolute min

unrest abroad, maintenance of the

fits derived by
the export of

Sept.

the

over

materials:

expansion

industrial

(e.g., Latin America tanning in¬
dustry), or simply increases in
population.
However illogical it

war-torn countries to get back on
their feet."

public statement issued on
17, 1945, President Truman

out-of-the-way places.
The fact
is that this country is vitally de¬
pendent upon imports from all

the end-use (from the stand¬
point of prevention of disease arid

the major considerations involved
in any quota decision is: "What

a

be

war-

areas

We have already sol¬
emnly stated that we will do all
that is reasonably possible to

help

understand why we
sending such merchan¬
dise, in short supply in the United
States, to Java, Indo-China, Siam,
Belgian Congo and other such
to

fail

ple

should

losses in productive facili¬

as

supply,

in

com¬

performance

of

responsibilities

other

and

the

supplies would be
seriou
jeopardized if we did not
our

ply of materials from the United

should

losses

couched

often

Nevertheless, in

ties

and

retaining

This

general, there are several prin¬
ciples which are applied to every
export
quota
request,
and
I

extreme

respect to this matter of

problems

widely different.

parison

distinct

steps involved in the fixing of
quota. In each of these there is

the

criteria?

question to answer,

easy

by different commodities

as a result of the

"When I returned from Potsdam
I said, Tf we let
Europe go cold

On the other hand, it
has found that com¬

sufficiently

quota is made

also

could be safely added to the free
list as a result of
easing supply

in

a

Ex¬

commodities
which
had
been originally left under control

sometimes

Government

that

on

found

many

conditions.

repre¬

agencies having an interest in the
problem.
Final determination of

In

September,

Committee

all

of

of

these

are

an

these

Controls

Prior
there

consists

What

meeting
the
basic
needs
of
friendly foreign countries. While

Export

on

which

sentatives

essential to reconversion and

are

the CPA Priority Policy Com¬

to

household

of this sort

Criteria of Quotas

be

can

Clothing, food,
utensils, small tools,
items fo merchandise

tually worthless, and trade goods

recommends

it

because

mittee,

of course, very

are,

imprecise in char¬
acter.
They nevertheless provide
a
broad, theoretical basis for de¬
termining the minimum level of
export quotas.
When it comes to
setting actual figures, however,
it is necessary to employ a num¬
ber of supplementary criteria.
general

urgency of foreign need.
These
recommendations
are
submitted

As

k

commitments of interna¬

These

tional policy

suc¬

ders, etc., delays and interfers
with the return of free economy.

the

Canada,

other.

weighed against the demonstrated

company

to

stipulated the principle of
reciprocity
in
dealing
fairly and equitably with each

Subjecting manu¬
facturers
or
export
establish¬
ments
to
crippling restrictions,
and telling them that they cannot
ship more than this quantity or
can ship only to this or that area,
delays and interfers with the re¬
turn of a free economy just as un¬
necessary domestic use of alloca¬
tions, priorities, Limitation Or¬

y

respect

"merging" of the two economies

a

termine whether
fails.

pe¬

pre¬
This Agreement called for

is not

or

transition
peace.

eign countries.

allowed for export in light of the
domestic
supply
situation
as

ceeds

war

icy, applies to other friendly for¬

long run prosperity and
its ability to maintain employ¬
ment.
In many cases exports de¬
a

to

by

A sim¬
ilar, though less well defined pol¬

De¬

presents

statement

a

the

needs of

operations,

contributes

International

in

The Office

manner:

sential

great deal of em¬
export business.
Like

the

during

from

vT
C
tirT

and

items:

end

commonly found in dime stores or
mail-order catalogues. Many peo¬

riod

ev

port demands are quite
large
commodities like rosin, cotton
tiles, trucks, automobiles and

plate, the foreign

effect

advised

been

and

established

are

production in foreign countries of
in this country.

of production
represented by

materials needed

the
Department of State that this pol¬
icy, in general, should remain in

have

We

mutual

addi¬

a

domestic

business

Quotas

following

incentive

of

ers

—Canada and the United States—

Fixing Quoats

well understood,

as

Most incentive goods are consum¬

be made available for export.

exer¬

establishments

place

United

accorded

States civilian needs."

vails.

In

controls.

of

broadwoven Hyde Park Agreement still

quirements which it considers

export houses,

selves

in

treatment

the

needs

Republics equal to

the American

In two

we

activity when

cise

its

with

interfere

we

tion

'V

(cottoj|i

a

export controls we inter¬

of

use

ceilings, beyond

essential

goods and tinplate) they are also
guaranteed quantities which shall

"hands off" policy. We
have considered that through the

followed

com¬

two

under

the

for

not nearly
is the supply
goods to stimulate

the United States; but

ex¬

In addition, there are a number
of instances where the
percentage

Claude Johnson Wiih

Field, Richards Co.
(Special

to

The

Chronicle)

Financial

CLEVELAND, OHIO

—

Claude

U. Johnson has become

associated

with Field, Richards &

Co., Union

Commerce Building. Mr.

formerly

conducted

vestment

business

in

Johnson

his own

in¬

Cleveland.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4502

Volume 163

SEC Proposal Would Deal Body "Share Thru Care"
Campaign Inaugurated
low to Over-the-Counter Industry

New

(Continued from page 3483)

(Continued from

page

of

3471)

the

Quartermaster

BOSTON, MASS.
tion

originally directed the department
developed the "10-in-l" pack¬

by

nessmen

pal stockholders.

age.

terprises,

president of the New York Stock Exchange
conducted an aggressive, nation-wide campaign to obtain
amendments to the Securities Act of this character on the

"Just

1,200
"To

"equalized."

be

We believe the campaign

actually

was

prompted by the fact that many corporations approached by

now

mum

level.
to

food

Exchange in an endeavor to get them to list their securi¬
ties contended that the Exchange's disclosure requirements

Securities Act of 1934 and the SEC
That objection is as sound now as then.

and those imposed by the
too onerous.

The New York Curb

Exchange also favored "equaliza¬

under the provisions of the Securities Ex¬

tion" because

change Act of 1934 having to do with granting

of unlisted

trading privileges on exchanges to equity securities, and
under the policy followed by the SEC, new admissions of
stocks to unlisted trading privileges on Exchanges had been
rather limited.
However,

and

more

there has been

more

marked

a

greatly liberalized.
that in

whether on the exchanges or over-themanipulative practices have already
effectively barred.

nil security trading

counter, fraudulent and

It seeks other

"safeguards."

appendix to its report appears the proposed bill

In the

long

that

move

to

because
get

clude

"Those

spread

(appears on page 3471 of this issue) which would extend the
provisions of the above sections to unlisted securities of cor¬
porations which have at least $3,000,000 in assets and at
least 300 security holders.
The SEC states that

be affected by its

only about 3,090 corporations would

proposal apparently to minimize its im¬

portance. That it is an issue of real
becomes obvious when one reflects

transactions

magnitude, however,
the fact that the

on

traded

on

an

About 95% of the

unlisted basis.

all exchanges of the country take

on

place

on

in

relatives

surely

and

the

can get aid
through the

posal is not only in direct conflict with public interest but
also constitutes a grave danger to large and small over-the-

| counter dealers throughout the country.
If the

proposal

were

put into effect many of the purely
least traded on an

butter of the dealers would then be at

I unlisted basis,
By

a

say on

the New York Curb Exchange.

process the SEC apparently seeks to erase
between the over-the-counter market and the

gradual

distinctions

and

York

fic

and

Research

addition

Development.
Messrs.

to

and

Hotchkiss, directors
Charles Francis Adams,

Under agree¬

individual

the

with

ments

and

zones

Coolidge
include

gov¬

Paine, Webber, Jackson & Curtis;
C.

Richard

Morse,

President of
Corp.,
and

Research

National

ernments made with the

approval Quincy A. Shaw, Jr., Treasurer of
of the United States State Depart¬ North American
Mines, Inc.
ment, the packages are exempt,
"New Enterprises, Incorporated
duty free and without curtailment
is interested
in developing new
of the regular rations of the re¬
ventures based on the application
cipients. Packages have already
to
forward

moved

been

to

industry of novel techniques or
scientific developments," Mr.

some

new

distribu¬
Coolidge
when the CARE remittance

countries to be ready for
tion

forms

here

purchased

CARE

the

to

mailed

are

air¬

representa¬

tives.

states.
"In contrast to
certain larger organizations in the
ing

non-profit organization,

their

diate

a

sending

honor

of

eral

Gen¬
of the participating
the

were

seven

their

or

support

to

in the earliest stages of

when imme¬
requirements may
be
small; as well as ventures
which have reached or passed the
development,

capital

agencies concerned
food
to
Europe stage of 'pilot' operation.

of 24 member
with

financial

give

to

is operating with" the approval of
President Truman and is made up

of

capital field, we are will¬

venture

ventures

CARE,

Consuls

representative^.

that

believe

"We

stimulation of research will bring

opportunity in the next
for the development of
new
products and processes on a
commercially successful basis. In
addition to stimulating new scien¬
great

a

We remind the Commission

accrued

as a

that both the auction and

have distinct characteristics,

and usage and
economy well.

result of decades of trade practice

that these dual markets have served our

few years

the Honorable John tific discoveries, wartime exper¬
Kalergis,
Consul
General
of ience demonstrated that modern
Greece,
Mr.
Nicholas B. Lely, engineering methods can quickly
Greek
Minister
of Information, convert laboratory ideas into fin¬
Mr. Kurt Linden, Vice Consul of ished
products.
Finland, Mr. L. Brasseur/Assist¬
"It will be our purpose to fur¬
ant Consul
Generale of France,
nish investment capital to enable
Honorable G. R. G. Van Swindersimilar
development
of
new
en, Acting Consul General of the
peacetime enterprises from the
Netherlands, Mr. N. Bolstad, Con¬
laboratory to commercial produc¬
sul of Norway, Mr. C. Milosz of
tion in the shortest possible time."
the Polish Consulate and the Hon¬
orable B. Syrovy, Consul General

Any requirement that

!

closures

now

are

the larger corporations whose

traded only over-the-counter

make dis-

To

i

of Norway.

comparable with those whose issues are traded on

the exchanges

would obviously alter this situation radically.

It is therefore

imperative that this potential threat be

united
of the issuer corporations that would be affected

^resisted. This

opposition

can

be done effectively only by the

and all members of the over-the-counter

industry from coast

to coast.

served

production of all
continues
to characterize
for

kinds

present business

To throw further

light

on

the subject all of our readers

invited to send in their comments on the

Commission's

the Editor of the Commercial & Financial
Chronicle, 25 Park Place, New York 8, N. Y. Your name will

proposal to

j

not be published if you do not wish it

revealed.

ground of buoyant

(Special

to

The

BOSTON,

Financial

Chronicle)

MASS.—F.

L.

Put¬

&

Co., Inc., 77 Franklin
Street, have added to their staff,
Alexander L. Lovequist, Gerard

nam

E. Mixson, George
Louis F. White.

Taloumis, and




to The Financial

KANSAS

increased
housing accommodations at home,
the report continues, supplies of
many
commodities and services

and the

urgent need for

inadequate

still

despite

the

rapid rate of industrial reconver¬
sion.
Production has been im¬

by

peded
and

indirect effect of

the

strikes in the United States

recent

latterly by a number

portant labor disputes in

of im¬

the Do¬

Chronicle)

CITY, MO—Paul J.
O. H. Wibbing &

Security Building,

St.

Louis, Mo. He was formerly with
Prescott, Wright, Snider Company
and B. C. Christopher Company.

data

consumer

retail
were

Major in the United

a

the war, as a
representative of the bank in the
Middle East. He has established
office

his

Cairo, Egypt at 33
Farida. Mr. Sadi

in

Malika

Sharia

will maintain contacts

with

corre¬

and other cus¬
of the Chase in the Middle

banks

spondent
tomers

East.

white satin,

man

the

U.

Military

S.

Academy,
matron
Edward S.

brother of the bride. The
honor

of

Mrs.

was

There were no ushers
or maids of honor at the wedding.
The bride is 21 years of age and
Seligman.

the

The bride is a

is 23.

groom

graduate of Erasmus High Schools
1941 and of Cornell College, class

is a
High
School, class 1941. While attend¬
ing Cornell Mr. Boas enlisted in
June, 1945. The groom
graduate of James Madison
of

U.

the

return
1944

in March
Cornell and

service

re-entered

he

On his

Army.

S.

the

from

graduated in the class of

was

1945.

will honeymoon in
going by

The couple

Guatemala and Mexico,

plane. They will be gone five
weeks, afterwards being at home
at 2805 Bedford Avenue, Brook¬
lyn.
is

Marks

of

Carl

Co., Inc. and Mr.

&

Marks

President of the

Boas

securities

foreign

firm

during World
Senior
for three years, is now
with
the investment

senior, who served
II

War

Lieutenant

a

as

Grade USN

connected

i

& Co.

of Ernst

firm

a

native of Beirut,

received his pre¬
paratory education at the Ameri¬
and

Lebanon,
can

which
sales,
13.8%

in
in

dollar

excess

volume,

of the cor¬

responding figure for 1945.

Stop Inflation
Acting Premier Arpad

University there before com¬

Szakasits

addressing more than.
100,000 persons in the Stadium at
June 23,

on

that

said

Hungary,

Debrecen,

would have to work
harder, and higher taxes would
have to be levied to stabilize the
currency.
A delayed Associated
Press dispatch from Hungary on
that date, published in the New
York "Herald Tribune," reported
these advices, which latter also
Hungarians

said:

Acting Premier Arpad

Szakasits

black-market operators
would be drafted for foreign labor
and
"reactionaries"
would
be
that

said

against the most fantastic
tion in the nation's history.
Recently

fight

Hungary's

in

eliminated

infla¬

ten-trillion-penga

a

placed in circula¬
exchange value of

bank note was

with

an

26 cents in

American money.

Un¬

exchange values, thenote would have been worth two
trillion American dollars.

der

prewar

the
said
uating from Columbia University there was no complete freedom of
in 1925, he later attended the New
speech and the press in Hungary,
York
University
Law
School. but asserted that when Hungarian,
Prior to entering military service
democracy was as old as that of
he was a partner in the firm of
the United States it would be just
ing

York

New

to

and acquiring

Amercian citizenship. After grad¬

De

Coppet
He

Street.

while

&

Doremus,

was

East

63

stationed

most

of

in

the

Wall

interview prior to
speech
Szakasits

an

as

complete.

the
time

wartime duty.

on

At

stadium

Yates With

Weeden in S. F.

to Ti e Financial

(Special

!

Chronicle)

t

t

,

Marvin Leggett Dies

of

show that Canadian

Hungary Aims to

tion

is

Sadi

Mr.

Middle

present

of

who

power,

for the first four months

1946,

as

has

Bank

Sadi,

M.

Subhi

States Army during

according to the
report, is apparent in retail sales

buying

Cox is now with

Company,

abroad

shortages

food

immense

minion.

Cox With Wibbing
(Special

domestic pur¬

chasing power, large-scale govern¬
ment credits to finance exports,

Strength

F. L. Putnam Adds to Staff

situation in

of Montreal re¬
ported in its business summary
issued on June 24. Against a back¬

Canada, the Bank

National

Chase

The

designated

Lags

are

are

Represent Chase Bank

Canadian Production

the

a

wore

with Duchess lace. The best
was Cadet Edwin
Marks of

were

Pressure

securities

bride

The
gown

Mr.

wartime

the

auction market.

the over-the-counter markets

Mrs. Robt. S. Boas

offici¬

Center

In

American

the

f

o

Mid-

Jewish

wood

,

over-the-counter securities which constitute the bread and

I

the East

New

Office

Jr., of
Paine, Webber, Jackson & Curtis;
ing
to
Austria, Czechoslovakia, Brig.-Gen. Georges F. Doriot; Mal¬
Finland,
France,
Greece,
Italy, colm W. Greenough, of Hutchins
Norway, Poland, the Netherlands, & Parkinson; James J. Minot, of
to

Harry

Telephone Com¬
During the war he was as¬

Patent

ated.

plan."

They

hardly be over-emphasized that the instant pro¬

can

Astoria Hotel.
Rabbi

Halpern

S.

pany.

the

of

sociated with the Office of Scienti¬

make imme¬
diate deliveries and return signed

and

Jade

with

U.

the

hungry

CARE is set up to

countries

the New York Stock and Curb Exchanges.
It

the

special

Waldorf-

unit in or¬
securities of only 1,140 corporations are listed on the New
der to guarantee quick delivery of
York Stock Exchange and those of only 812 are traded on
larger quantities of food.
the New York Curb Exchange of which 379 are fully listed
Present at the meeting as guests
are

formerly associated with
a

Brooklyn,

Y.,
at
6
P. M. Sunday,
June 23, in
Room

which operates as one

and 433

L,
N.

Cool¬

Paine, Webber, Jackson &
Curtis.
Mr. Hotchkiss is a gradu¬
ate engineer with experience in

the

Europe to whom they
CARE

Mr.

firm of
who

us

Europe also perform a service to
our
countrymen — people
with

quickly

Vice-President.

Boas of
Avenue

partner of the investment banking

of

or

wortn

Coolidge
as
Eugene B. Hotch-

Coolidge & Rugg and is

their feet

on

Mr.

Mrs. Ben¬

2305

in¬

A.

and

was

corporation

the law firm of Ropes, Gray, Best,

story of CARE food packages for

friends

as

idge

will

quickly.

more

William

kiss

us

the

of

President

is

to

and

enter¬

Boas,

of

son

provide

new

married to Robert

was

jamin Wads-

Officers

with

it

to

for

prises.

are

mini¬

beneficial

run

them

enable

bare

Europeans

will be

now

the

Any

supply

sectors in Germany.

The Commision is not satisfield with the fact

;

in

the

at

corporation

capital

Brooklyn,
Sanford

Massa¬

a

receipts to donors of packages go¬

change in the Commission's attitude toward this problem.
The interpretation and application of the rules have been

been

generally

Incorporated,

venture

must

we

European rations

more.

made

the

were

perform daily work

have

grounds that the listed and over-the-counter markets should

stay alive we require
1,400 calories," he said.

Avenue,

and bankers of New En¬

chusetts

to

to

Miss
Marjorie Evelyn Marks,
daughter of Mr. and Mrs. Carl
Marks of 2805 Bedford

today of the forma¬
group of Boston busi¬

a

that

last

Robert S. Boas

Announce¬

—

ment is made

General,

circumscribes the activities of directors, officers and princi¬
The

Miss Marks Wed lo

Enterprises, Inc.
For Venture Capital

Marvin
dent

tive

died.
were

and
for

Leggett, Vice-Presi¬

Midwestern representa¬
Distributors Group, Inc..

Mr.
in

C.

Leggett's

Chicago.

headquarters

SAN

FRANCISCO,

CALIF.—

George Van Heusen Yates is now
with Weeden & Co.'s main office

Street. He was
associated
with the

at 315 Montgomery

formerly

firm in their

Boston

branch.
if

I

I

hi;

THE COMMERCIAL & FINANCIAL CHRONICLE

3522
■i

Thursday, June 27, ig4e

i

mm r

in
•

Aeronautical
June

6

filed

Securities,

500.000

shares

Inc., New York

of

capital stock (par $1).
Underwriter—Calvin Bullock, New York.
Offering—
The shares will be offered publicly at a maximum
offering price of $5,360,000 (determined at the offering
price computed on the basis of the net asset value on
June

4, 1946, viz., $10.72

a

INDICATES ADDITIONS SINCE

tal.

Common

•

of

class A

(A. M.)

(let

er

for

their shares.

Jr. Mfg. Co.,

Drexel Hill, Pa.

100,000 shares

($1 par)
share.
No

stock.

common

Offering price, $3 a
underwriting. Proceeds—Of the proceeds, the company
will use $75,000 for buildings, $60,000 for machinery
and equipment; $50,000 for lumber and hardware, and
the remainder

are to

For

•

Air

Cargo Transport Corp., New York
filed

19

435,000

stockholders

(7/8)

shares

the remainder by the company.
The
$60,000 of the proceeds to repay a bank
loan, about $500,000 for new equipment and $250,000 for
ground installations at various points in the United
latter

will

States.

ferred

American

Aviation,

Inc.,

etc.

holders

rate

of

New York

issue

see

of

(no par).
Offering—Stock is of¬

Brothers.

common

stock

stock

of

record

June

shares held

seven

at

$47 per share.

Rights expire 3 p.m. July 2. Proceeds—
proceeds will be added to the general funds and
applied to such purposes as directors may determine.
For details see issue of May 30.
Investment

Co.

May 24 filed 90,000 shares 5%

O

of

Illinois

convertible

(6/28)
preference

June

stock

may

exchange their holdings

on

the basis

Unexchanged shares will

be offered

at

$26 through underwriters.

Proceeds—Re¬

demption of unexchanged shares of preferred.
American

21

(letter of notification)
stock

the

price:

share and the

West,

New

Manufacturing Co.; Inc., Montgomery,

underwriter

by Harry Marks, a broker licensed by the
agreed compensation of $5,000.

American Telephone and
Telegraph Co., N. Y.

June 20 filed $125,000,000
40-year

debentures, due 1986.

Underwriters—Company will invite
the

debentures.

sealed

Probable

bids

bidders

for

the

include

Morgan Stanley & Co., and Halsey, Stuart & Co. Inc.
Price

by amendment.

Proceeds—To

provide funds for

additions and improvements to the
company's plant and
plants of its subsidiaries.
Business—Telephone service.

American Water Works
Co., Inc., N. Y.
March 30 filed 2,343,105 shares of common

(par $5) plus
only after the re¬
sults of competitive bidding are known. Underwriters—
To be filed by amendment.
Probable bidders include
Dillon, Read & Co. Inc., White Weld & Co., and Shields
an

additional

number

($1

par)

Offering
stock will be offered publicly at $1

option warrants will be sold
the

underwriter,

at

,o

lc

Lionel

each.

Of

proceeds, $90,000 will be used to acquire title to
mining claims and equipment, known as "Samoa Mine,"
near
Chloride, Ariz., and .he remaining proceeds will
be used for working capital.
Arkansas
June

5

filed

West.

Gas

Co.,

33,639 shares of

Sons Inc.

Fayetteville
stock

common

determinable

& Co. (jointly), and W. C.
Langley & Co. and The
First Boston Corp* (Jointly). Offering—Price to
public
by amendment.
Purpose—The common stock, together
with $15,000,000 10-year 3% collateral trust bonds
(to
be sold privately) are to be issued to
acquire certain
assets of American Water Works &
Electric, liquidate
two

subsidiaries, Community Water Service Co. and
Ohio Cities Water Corp., and provide cash
working capi-

Shares

are

construes

Budd Company,

&

Co.

Inc.

Offering—Shares
common

the rate of

(7/10)

s

shares

underwriters.
and

to

for

sub¬

ockholders of record on June
21
share for each five

will

com¬

be

Righ

offered

Proceeds—To

expire July 8

s

to

increase

the

public by
capital

working

finance

purchases of additional machinery
equipment, etc.
For details see issue of May 30.
California Electric Power Co.

and

1976.

1,

Underwriters—Names

Trust

bearing a 3%
o noon (EDST) on July 1 at office of Bank¬
Co., 16 Wall Street, New York.

May 24 filed 312,000 shares of

Exchange offer expires
July 9. Proceeds—Redemption of old preferred not ex¬
changed. For derails see issue of May 30.

through competitive bidding. Under¬
by amendment.
Probable bidders in¬

writers—Names
clude Blyth &

Ripley

&

Gas

Co., Inc.; The First Boston Corp.; HarriCo.
Offering—Stock is being sold by
and

Electric

offer and
ceeds to

underwriters

as

filed

29

company

Proceeds—Net pro¬
funds.

for general

(7/1-3)

15,000 shares of cumulative convertible
(par $100) and a maximum of 124,126

common

Republic

stocks will

for

agent for Weldon offer.

as

company

shares of

stock

(par $5).
Underwriters—Cen¬
Offering—Preferred and common

Co.

be offered

the

to

public.
Prices by amend¬
being sold by six stockhold¬
ers
including Central Republic Investment Co., A. C.
Allyn & Co., Inc., and Lee Higginson Corp. The lat er
two companies and Central
Republic Investment Co. (one
Of the selling stockholders) propose to participate as un¬
Common shares

are

derwriters in connection with the public distribution of
the stocks.

Proceeds—Net proceeds to the company from
be applied to the redemption
preferred stock at $105 plus divi¬

the sale of preferred will
of 9,148.5 shares of

•

Balance will be added to

Boston

June

24,

ment

filed 500,000

shares

Proceeds—For

($1

par)

investment.

common

stock.

Price—At

Business—Invest¬

California.

Co.

rejec ed
purchase of the stock as un¬

Stock will again be pu„ up for sale

Candego Mines, Ltd., Montreal; Canada
May 31 filed 500,000 shares of

used

stock

common

(par $1).
Offer¬

for

to

public at 75 cents a share.
proceeds, estimated at $300,000, will be
operations.
Business—Exploring for

mining

ore.

Cardiff

June

(N. Y.)

Union Gas

3

Fluorite

filed

(Canadian

Mines

Ltd., Toronto, Can.

400,000 shares of

funds).
N. Y., is

Rochester,
UnLed States.

stock

common

Underwriter

underwriter

—

Frank

for

of

sale

Offering—Stock will be

($1
P.

sold

Co.

par)
Hunt,

stock

Fluorite.
•

Cash

June

(J. & J.)

Inc., South Norwalk, Conn.

20

(letter of notification) 1,000 shares ($100 par)
5% cumulative preferred stock.
Offering price, $100 a
share.
No underwriting.
Proceeds—To redeem in part
its

presently outstanding 7% preferred stock.

S. D.

May 29 filed 35,000 shares of $2 cumulative preferred
stock, series A (no par), but with a stated value of $50 a
share, and 175,000 shares of common stock (par $1).

Underwriter—Paine,
Offering—The

Webber,

cago.

Jackson

Curtis, Chi¬
public

&

stocks will be offered to the

prices to be supplied by amendment.
Proceeds—To
off $3,000,000 loan from First National Bank Chi¬

pay

shares of cumulative preferred stock
($100 par). Under¬
writers—To be filed by amendment.
Probable bidders
include Halsey, Stuart &
Co., Inc. (bonds only); Harri-

Ripley & Co., and Mellon Securities Corp.
(jointly);
First
Boston Corp.; F.
S. Moseley & Co., and

cago and Harris
ance

Trust and Savings Bank,

Chicago, bal¬

working capital.

Central

Ohio Light & Power Co., Findlay, Ohio
May 29 filed 30,000 shares of common stock (par $10).
Underwriters—If unsubscribed shares are sold to under¬
writers

names

will

be

filed

by amendment.

Probable

☆
SPECIALISTS IN

—

Underwriters and Distributors

United States Government Securities

The

C. J. DEVINE

FIRST BOSTON"

Securities

CO.

Kidder, Peabody W Co.

INC.

CORPORATION

48 WALL ST., NEW YORK
^

Chicago

•

Boston

•

Cincinnati
;

Founded 1865

5, N. Y.

Philadelphia
•

of

Corporate and Municipal
Bonds

«

St. Louis

•
•

HAnover 2-2727

Pittsburgh

in

to

public
at 55 cents a share.
Proceeds—Of the net proceeds, $40,000 together with $22,000 of
treasury funds, will be used
for development work.
If sufficient ore is found, com¬
pany will erect a mill at an estimated cost of $150,000.
The balance will go into
working capital.
Business—
Company intends to explore for the mineral known as

at

May 3 filed $34,000,000 general mortgage sinking and
improvement fund bonds due June 1, 1976, and
70,000

man

of

Electric

Blyth & Co., Inc., and First Boston Corp.
a share, and Harrimart Ripley & Co. bid

share.

a

parent,

Central Electric & Gas
Co., Sioux Falls,

company.

Brooklyn

The

$28.33

&

when market conditions
improve.

general funds.

Fund, Inc., Boston, Mass.

Underwriters—Vance, Sanders & Co., Boston.
market.

of

Corp., Philadelphia, which
Price—$25 a share. Underwriters

Booth Fisheries Corp.,
Chicago

dends.

satisfactory.
bid

Co.,

Gas

Weldon

of

controls the company.

ment.

bids for the

Proceeds—Net

(letter of notification) 2,226% shares common
(no par) on behalf of the company and 3,973%

May

two

ing—Shares will be offered

(7/5-7)

behalf

(no par).

Underwriters—Sabiston-Hughes, Ltd., Toronto.

County Coal Corp., Philadelphia

13

on

*

stock

common

Stock will be sold

of $24,031

stock

due June

filed

coupon up
ers

offered for exchange to holders of
$4.25 cumulative pre¬
ferred stock on basis of one share of new
preferred for
each share of $4.25 preferred.

shares

be

receive bids for the purchase of the bonds

Rejected—Standard

June

to

by amend¬
ment.
Probable bidders include Dillon, Read &
Co.,
Inc.; The First Boston Corp.; Halsey„ Stuart & Co., Inc.:
Kidder, Peabody & Co.
Bids Invited—Company will

25

Boone

(7/1)

May 10 filed $16,000,000 first mortgage bonds

Bids

☆

stock

Co., and Blyth

additional

June

State and Municipal




one

common

offered

are

shares held at $16 per share.

Unsubscribed

man

Beatrice Foods Co., Chicago

Chicago and other citiesr

(7/9)

24 filed 540,573 shares of no-par
Underwriters—Carl M. Loeb, Rhoades &

☆

•

Philadelphia

May

May 29 filed 59,862 shares of 3%% cumulative converti¬
ble preferred stock
($100 par).
Underwriter—Glore,
Forgan & Co., Chicago.
Offering—Preferred will be

Corporate and Public Financing

Boston

p]an,
reim¬

purposes, and to provide funds for the
completion
construction program now
in progress and

Standard

—

•

Proceeds—Company

California Oregon Power Co.

$5).

being sold

☆

NewYork

only).

contempla ed to be commenced in the immediate
future
Bids—It is expected that bids for the
bopds will be re¬
ceived about July 9 and for the stock about
July 23.

(7/5)
(par

Offering—Stock will be offered to

Price by amendment.
by six stockholders.

tral

no

entirely within the state

purchase of

299,000 shares
option warrants.

75,000

York,

preferred stock

•

and

common

eral corporate purposes.
There will be
but the securities will be sold

an

a

at

Airlines, Inc., New York

May 31 (letter of notification) 300,000 shares.
Offering
price, $1 a share.
For purchasing additional equipment
and machinery, for plant
expansion, and for other gen¬

state, for

For

(letter of notification)

—Janney & Co. will act

Ala.

of Alabama

tion

of

issue of June 20.

see

common

(par $25).
Underwriters—Alex. Brown & Sons.
Offering—Holders of 5% cumulative convertible pre¬

of two shares of preference stock for each share of
pre¬
ferred plus cash adjustment.

(stock

outstanding long-term debt, to
treasury for expenditures made for

the

burse

Arizona Mining Corp., New York.

stock

ferred

general funds.

10,000 shares of common
class B stock, non-voting (par $5). Price to
public, $10
per
share.
Not underwritten.
Proceeds for working
capital.

18

Net

American

to

the public.

(7/3)

common

share for each

of one

added

Price by amend¬

the

Wilmington

For details

May 29 filed 257,840 shares of
to

15,GOO shares cumulative convertible pre¬
$100).
Underwriters—Kidder, Pea-

Underwriters—Rauscher, Pierce & Co. Inc., and E. H.

Allied Stores Corp.,

at the

Processing Co., Mount Holly;

be

Co.

&

one

April 4.

(par

Arcadia

Rollins &

Underwriter—Lehman

under

Otis

to refund its entire

scription to
•

A.

May 23 filed 100,000 shares of common stock.
Under¬
writers—Van Alstyne, Noel &
Co.; Francis I. du Pont
& Co., and Courts & Co.
Offering—Stock will be offered
to public.
Price by amendment.
Proceeds—Purchase
twin-engine aircraft,
May 30.

Yarn &

Proceeds—Will

details

issued

or

(7/2)

stock

ment.

a

(7/1-3)

of

subscribed

be sold for cash to underwriters.

body & Co., and R. S. Dickson & Co.

and

use

Business—Cargo air carrier.

All

initially for cash

parent and to public holders

mon

($1 par) common stock.
Underwriters—By amendment.
Price b,y amendment.
Proceeds—Of the total, 35,000 shares are being sold by

fered

see

June 12 filed

June 24

June

PREVIOUS ISSUE

offered

be

not

issue of

details

American

working capital.

as

Stock

exchange offers

share). Proceeds—For invest¬

of notification)

to

preferred stocks of Community and Ohio in exchange

N. C.

Aiktnavt

is

to common stockholders of

ment.

June 20

stock

•

Members of the New York and Boston Stock Exchanges

Cleveland

NewYork

San Francisco

☆

Boston

Philadelphia

Chicago

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4502

Volume 163

underwriters include Blyth & CoM Inc.: Otis & Co., Inc.;
Harriman Riple.y & Co., Inc., and The First Boston Corp.

Offering—The shares will be offered for subscription to
common stockholders at the rate of one new share for
each 2.8 shares now held.
Unsubscribed shares may be
sold to underwriters or
o other parties.
Proceeds—
For expansion of consumer services and improvement
of

Hosiery Mills, Inc., Charlotte, N. C.

Chadbcurn

(7/8)
shares ($50 par) cumulative con¬
vertible preferred stock and 25,000 shares ($1 par) com¬
mon stock.
Underwriters—R. S. Dickson & Co., Char¬
17, filed 25,000

June

Price—By amendmen.. Proceeds—Net pro¬
be used to enlarge and improve property

lotte, 1ST. C.

will

ceeds
of

subsidiary, Lark wood Hosiery Mills, Inc., Charlotte;
4,000 shares of same subsidiary's 5 ¥2% cumu¬

to redeem

stock at $106 a share; to prepay $473,500
2% bank loans and to purchase machinery and equip¬
ment for mills of the company and i.s subsidiaries.
lative preferred

Chicago & Southern Air Lines,
Tenn. (7/1)
of

no-par

$30 a share up
McCormick &

170,000 shares

the

issuable

of

company

upon

common

Proceeds—Purchase

amendment.

parts for training costs and foreign

spare

route installation costs, etc.

Bankers Securities Corp.,
by amendment, based on market.
being sold by

Clinton Industries,

filed

offered

such

parent.

of capital stock (par $1).
underwriters.
Offering—The shares
executives

to

and

employees

key

•

the exercise of options for purchase of
Price—Options already issued provide for

purchase of the

J.

26

June

Products

Aircraft

Columbia
N.

of

upon

stock.

a

Somerville,

Inc.,

shares

150,000

par)

($4

30c

cumulative

Underwriters—Floyd D. Cerf
Co., Inc., Chicago, is the principal underwriter.
Offer¬
ing—The company ini ially will offer 59,585 % shares for
subscription to present common stockholders at $4.50
a

share

in

share of
holders

of

the

ratio of

held.
the

excludes

one

share of preferred

for each

The offering to common stock¬

two

principal stockholders of the

waived .heir rights to subscribe.
The remaining 90,414% shares and any shares not sub¬
scribed to by common stockholders will be offered to
the public through underwriters.
Price—The public
offering price is $5 a share.
The underwriting com¬
mission is 85c a share for shares sold to the public and
company

25c

who

share

a

have

those

for

Proceeds—Of

;he

net

sold

to

stockholders.

common

approximately $55,000
will be used for payment of Federal taxes and about
$250,000 for payment of a loan.
It will lend $50,000 to
Palmer Brothers Engines Inc., a subsidiary, and the re¬
maining proceeds will be added to working capital.
Business—Manufacture of parts for Palmer Engines and
produc ion of diesel mine locomotives.
proceeds

Retail

Stores,

St. Louis

Inc.,

(7/8)
June

filed

14

shares

be

and

filed

134,814

shares

Emanuel

—

stock

common

Deetjen

&

(no

par).
Offering—

Co.

held.

Certain

stockholders

have

waived

their

rights to subscribe for 45,600 shares.
Six shareholders
have agreed to sell 75,000 shares,
which, together with
unsubscribed shares being offered by the
company, will
be offered ;o the public through underwriters.
Price

amendment.

Proceeds—Constructing a four-story
company's Providence, R. I., plant; rehabilita¬

to

annex

May 31 filed 500,000 shares of

White, Weld & Co., and Stone & Webster Se¬

stock

on

(par $1).
Toronto.
Offer¬

Underwriters—Sabiston-Hughes, Ltd.,
ing—Shares will be offered
share.

the

to

public at 75 cents

a

share for share

a

60,000 shares 4%%

Diego, Cal.

May 29 filed 77,134 shares of common stock (par $1).
Underwriters—Names by amendment. Offering—Shares

proceeds, estimated at $300,000,
mining operations. Business — Explor¬

to underwriters for resale to the

•

Dana

June

20

Corporation, Toledo, Ohio
filed

100,000

shares

of

(7/9)

cumulative

proximately
struction

$42

of

estimated

share).

per

natural

a

of

cost

Industrial, Public Utility, Railroa'd

Proceeds—Net

proceeds, together with

other funds if necessary, will be used to prepay $10,000,000 of bank loans.
The bank loans were issued to pro¬

$41,412,000, and

000

new

an

o

bonds to be sold for cash and

refinancing

a

$8,500,000

new

•

and

program.

Engineers Waterworks Corp., Harrisburg, Pa.
(7/1)
(letter of notification)

1971.

Underwriters—C.

$275,000 4%

C.

debentures

Codings

&
Price, $101.

Stroud & Co., Inc., Philadelphia.
for purchase of additional
water
securities and for other corporate
•

Field & Stream
19

filed

Co., and
Proceeds

properties

or

their

purposes.

Publishing Co., New York (7/8)

58,800

shares

($2

par)

stock.

common

Higginson Corp., New York, heads
Offering—Shares will be offered pub¬

licly.

Price by amendment.

sold
&

by four

Stream," sportsman's

•

Films

Co.

and

company

its

subsidiaries

primarily

produce parts for the automotive indus.ry.

common

Inc.,
Dazey Corp., St. Louis, Mo.

(7/5)

preferred stock (par $10) and 100,000 shares of
(par 10c).

Stock being sold by five

s

common

ockholders.

Underwriters—Scherck, Richter Co., S:. Louis, and Allen
& Co.
Offering—Offering prices are $10 a share for the
preferred and $4

share for the

a

New

common.

stock and

May

23

Oil

filed

175,000

Underwriters—No
be

June
of

for

offered
20

the

of

shares

stock (par 500)
Offering—Shares will

common

underwriters.

sale

to

Southern

outstanding

stockholders

common

Union

common

Gas

Co.,

stock

which

one

consisting

share of

TRENTON

WASHINGTON

of

common

one

share

stock.

of

class

A

Proceeds—Com¬

will apply $201,000 for retirement of 2,010 shares
($100 par) preferred stock at $100 a share; remaining

proceeds, together with other funds, will be used for
production of educational films.
Company estimates it
will need $505,000 to finance produc ion of classroom
It

has

tributor of

been

conducting

16

educational

mm.

research

a

1945.

and

program

in

Business—Dis¬

entertainment films

in .he U. S.

record
Florida

all

owns

Fla.

corporation.

the

of

of

Each share

Underwriters—Herrick, Waddell & Co.,
Offering—To be offered publicly.

unit

a

connection with the venture since

Corp., Dallas, Texas

stock.

initially convertible into 2 shares of

pany

films.
Delhi

($5 par) class A slock and
common

York.

Price—$8.10

cumulative convertible

Proceeds—Proceeds will be added to cash balances to be

June

applied to the payment of current or other liabilities.

common

Public

filed

12

Utilities

Co., West Palm Beach,

(7/2)

stock

an

(par

unspecified number of shares of
$3).
Underwriters—Starkweather

&

•

Denver-Rangely Oil Interests, Inc., Denver, Col.

June

17

(letter of notification)

shares of

1,320,000

10-

cent par stock.

Offering price, 5 cents a share.
Under¬
writers—Harry J. Newton and A. B. Kamp & Co., both
of Denver.
Of the proceeds, $42,500 will be used to pay
interests in Government oil and gas leases, the balance
will be applied for corporate expenses.

Co., New York, and Clement A. Evans and Co., Inc.,
Atlanta, Ga. Offering—The shares will be offered to the
public.
Price by amendment.
Proceeds—Shares being
registered are owned by J. L. Terry, President, who will
receive net proceeds.

(7/8)

Darby Gas & Electric Corp., New York

June 19 filed

20,066 shares (no par) common stock.

Un¬

derwriters—No underwriters were named and there was
indication that

shares will be

would

there

Offering—The

any.

offered for subscription

stockholders at the rate

shares held.

be

of

one

Flying Freight Inc., New York

together with other funds, will
the

company's

Gas

& Electric

three

to present com¬
share for each 10

be applied as loans to

Connec.icut

subsidiaries:

Derby

Co.; Wallingford Gas Light Co., and the

Danbury and Bethel Gas and Electric Light Co.
Detroit Aluminum
Mich.
June

11

&

Brass

Corp.,

Hamtramck,

(7/1)

filed

181,440 shares

Proceeds—Shares

ness—Company was incorporated
operate as a charter air carrier.

($1.25 par)

common

stock.

are

Food

Fair Stores,

The

options
realize

will

Shares

are

T

on

March 9, 1946, to

Inc., Philadelphia

were

granted

$780,000,

on

Sept. 5, 1945.

Proceeds—

options are exercised, corporation

which it

intends

to

use

for in¬

creasing inventory, acquiring and equipping additional

supermarkets, warehouses, etc.

being sold by stockholders.
Forest

Diamond

stock (par $1). Un¬
Offering—Price to

April 29 filed 40,000 shares of common stock ($1 par),
issuable upon exercise of options to purchase common
stock.
The options to purchase common stock entitle
the holders to purchase between Sept. 5, 1946 and Sept.
4, 1950. shares of common stock at $19.50 per share.
In the event that all

Underwriters—Baker, Simonds & Co., Detroit. Offering
—The stock will be offered to public at $10 a share.

common

Reilly & Co., Inc.

public $3.50 per share. Proceeds—Proceeds will be used
for the purchase of six land planes, ten flying boats, re¬
conditioning of flying boats and working capital. Busi¬

Proceeds—Proceeds,

Price by amendment.

Business—Public utility.

May 6 filed 300,000 shares
derwriters—J. F.

•

Motor

Car

Co.,

Chicago,

III.

60,000 shares of common stock (par $2).

being sold by certain stockholders. Underwrit¬

ers—Hallgarten & Co. Offering—Price based on market.
For details see issue of April 4.

OF NEW YORK

City Manufacturing Co.,

Registrar

TWENTY

NEW YORK

•

Trustee

BROADWAY

15, N. Y.

St. Louis, Mo.

(7/8)

17, filed 280,000 shares ($1 par) common stock.
Underwriters—Peltason, Tenenbaum Co., St. Louis. Of¬
June

fering—Shares will be offered publicly at $11.25 a share.
Proceeds—Net

proceeds

go

to the selling stockholders.

Drilling Co., Denver, Colo.

May 20 (letter of notification) 1,493,303 shares of capital
stock (par 50) and 20,000 shares as a bonus offering
donated by Harry J. Newton, President.
OfferingPrice 50 a share.
100,000 shares allotted to present
shareholders to purchase at par and receive also a
20% share bonus with each purchase.

•

RECTOR 2-2200

INDIANAPOLIS

(7/15)

100,000 shares

stock.

being
"Field

magazine.

Inc., New York

June 25, filed

are

Business—Publishes

100,000 shares (10 cent par)

Members New York Stock Exchange
CHICAGO

Proceeds—Shares

stockholders.

of class A stock is

ONE HUNDRED

Hemphill, Noyes




con¬

seven-year bank loan will be used for construction

vide funds for the company's 1946 construction program.

Municipal Securities

PITTSBURGH

Proceeds—Finance

pipe line to California at

gas

Business—The

Transfer Agent

PHILADELPHIA

Common stock

retire outstanding
funded debt and preferred stock. Proceeds from
$25,900,-

underwriters.

preference

stock ($100 par).
Underwriters—Group headed by Mer¬
rill Lynch, Pierce, Fenner & Beane, New York.
Price

The Marine Midland Trust Company

ALBANY

public.

July 18, 1946.
Unsubscribed shares will be purchased by underwriters
for sale 10 the public.
Price—Price by amendment (ap¬

June

ore.

UNDERWRITERS—DISTRIBUTORS—DEALERS

YORK

cash

will be offered for subscription to present common stock¬
holders at ihe rate of one share for each six shares now
held.
The subscription offer expires on

Front Range Oil &

NEW

a

Proceeds—Net

March 29 filed

Consol. Vultee Aircraft Corp., San

and

exchange basis plus

payment to the exchanging shareholder.
The remaining
60,203 shares and any unexchanged shares will be sold

due

stock

common

Natural Gas Co.

curities Corp.
Offering—14,797 shares of preferred stock
will be offered to holders of 7% cumulative
preferred

June 24

Cyprus Mines, Ltd., Montreal, Canada

(Texas)

filed

75,000 shares ($100 par) cumulative pre¬
ferred stock and 100,057 shares ($3 par) common stock.
Underwriters—By amendment. Probable underwriters

tion of Providence factory, machinery and
equipment, etc.

mon

cumulative preferred
stock, series A (par $50).
Underwriter—Central Re¬
public Co. (Inc.), Chicago.
Offering—New preferred
will be offered in exchange to holders of company's
$2.75 cumulative preferred on^a share for share basis
plus a cash payment of $1 by the company and dividends
accruing on the $2.75 stock.
Common stockholders will
be offered the right to subscribe for the new stock at
$52.50 a share in the ratio of one share of new pre¬
ferred for each 12% shares of common owned.
Remain¬
ing shares will be sold to underwriters who will reoffer
it to the public at $52.50 a share. Proceeds—To redeem
unexchanged shares of $2.75 preferred at $53.50 a share
and as addi.ional working capital.
6

will

Company is offering 59,814 shares to s.ockholders for
subscription in ratio of one new share for each seven

no

Consolidated

shares

publicly of¬
Price by amendmen..
Proceeds

Underwriters

preferred.

common

Unsubscribed

10

include

par) capital stock.
Peabody & Co. Offering—Shares

Coro, Inc., New York
June

stock

preferred stock, convertible into common
stock in the ratio initially of 1% shares of common for
share

(7/17)

($20

June 4 filed 50,000 shares of 5%

convertible

each

shares

fered by underwriters.
—Payment of portion of the costs of construction
improvement program.

share.

(7/15)

filed

shares held.

by amendment.

(7/8)

Inc., St. Louis

capital stock at $16.66%
Proceeds—To be added to general funds.
the

Price

shares

60,000

Underwriters—No

company

141,496

El Paso
June

Underwriters—Lee

29 filed 100,000 shares common stock (par $5).
Underwriters—Lehman
Brothers.
Offering—S.ock
is

be

filed

Underwriters—Kidder,

ing for

May

will

12

will be used for

Philadelphia

City Stores Co.,

19

Container Corp. of America, Chicago
June

stock at

Co., Chicago, and I. M. Simon & Co., St.

of aircraft and

June

company

the

Underwriters—Kebbon,

Oct. 27, 1955.

o

Price by

Mo.

the exercise of options allotted by
to its officers and supervisor executives.
For de.ails see issue of
May 30.
the

by

addition,

for purchase

of warrants

exercise

In

42,000 shares of common

registered

Louis,

stock.

common

Memphis,

Inc.,

10 fiied vo ing trust certificates for

June

to be issued upon

are

will be offered for subscription to
present capital stock¬
holders at rate of one share of new stock for each six

properties.

•

3523

No underwriting

present.
Proceeds—To drill oil well in Albany
County, Wyo., to acquire further oil and gas interests
and to pay officers' salaries and general expenses.
at

Gatineau Power Co., Ottawa, Ont.

May 27 filed $45,000,000 series C and $10,000,000 series
D first mortgage bonds, due 1970 and $9,500,000 of sink¬
ing fund
decided

1961.
bidding.

debentures, due
by competitive

Underwriters—To be
Possible bidders in-

THE COMMERCIAL & FINANCIAL CHRONICLE

3524

(Continued from page 3523)
dude The First Boston Corp.; Halsey

Stuart & Co., Inc.;

Blyth & Co., Inc., and Mellon Securities Corp.
—Refunding. For details see issue of May 30.
General Builders Supply Corp.,

Proceeds

New York

May 31 filed 40,000 shares of 5% cumulative
preferred stock (par $25) and 170,000 shares
stock (par $1).
Underwriters—Allen & Co.

convertible
of common
Offering—

11,238 shares of new preferred will be offered in ex¬
change to holders of $7 cumulative (no par) preferred
stock on basis of one share of old preferred for 4.6 shares

Remaining 28,762 shares of preferred
and all the common shares will be sold to underwriters
who will offer them to the public $25 and $4 a share,
respectively.
Of the common being offered, the com¬
pany is selling 100,000 shares and 12 stockholders are
selling 70,000 shares.
Certain warrant holders of com¬
pany have agreed to sell to underwriters warrants for
purchase, during a period of four years, of 40,000 shares
of common.
Proceeds—Approximately $950,000 will be
of

preferred.

new

June

added to general funds.

General Cable Corp.,

Hoving Corp., New York

(7/2)

cumulative preferred
of exchanging their
shares for 150,000 shares of the first preferred stock
and 150,000 shares of the second preferred on basis of
one share each plus $12.50 cash for each share of 7%
preferred. The exchange offer expires at 3 p.m., June
150,000 outstanding shares of 7%
are
offered the privilege

stock

Shares

26.

of

second preferred

and

first

not taken in

proceeds will be added to general funds for use in an
Business—Newly organized to ac¬
expansion program.

June

•

Hungerford Plastics Corp., Murray

•

June 19
common

—First

capital stock.

Denver, Colo.

500,000 shares of 10c par
Offering price, 25c a share.
No

underwriting. Proceeds—To pay off notes and accounts
payable; to provide additional working capital for Gray
Refinery, Inc., a subsidiary, and for working capital of

Grand Valley Corp., New York

Proceeds—Use

Corp.

of proceeds

not

stated.

19

(letter of notification) 225,000 shares of com¬
Underwriter—Leven Brothers, New
York City.
Price to public $1 per share.
Corporate
purposes, such as reconditioning existing well, drilling
new well, additional equipment, etc.
Grapette Bottling Co.,

June

18

Inc., Hyattsville, Md.

Plating Co., Chicago (7/8>

filed

130,000 shares ($1 par) common stock.
Underwriters—Dempsey & Co., which owns and is sell¬
ing the shares being registered, will select the under¬
writers and may include itself in the underwriting group.
Offering—Of the total, 115,000 shares will be sold to
underwriters for resale to the public, and 15,000 shares
are to be offered to certain officers, directors and key
employees of the company. Price—Price of the 115,000
shares by amendment.
Price of the 15,000 shares to
certain employees, $6.20 a share.

Blyth

demption of 5% cumulative convertible preferred stock
converted into common prior to the redemption
date.
The balance will be added to treasury funds.
not

stock

(par $1).
Underwriters—Sabiston-Hughes, Ltd., Toronto. Offer¬
ing—Shares will be offered to public at 75 cents a share.
Proceeds—Net proceeds, estimated at $300,000, will be
used for mining operations.
Business—Exploring for
common

&

Chemical

Gulf Atlantic Transport'n Co., Jacksonville, Fla.
Jan. 17 filed 270,000 shares of common stock (par $1).
Underwriters—Blair & Co.
Offering—Stock is being of¬
fered to present shareholders at $3 per share.
Holders
of

approximately 200,000 shares have agreed to waive

their preemptive rights.

acquired by selling stockholders in exchange for 432,000
shares common stock (par $3) of American
Engineering
Co. Underwriters—To be named by amendment.
Offering
—Price to public by amendment.
Stop order

hearing

by SEC. For details
•

Hershfield

see

(H. A.)

issue of March 7.

& Co., Hutchinson, Hans.

June 20 (letter of notification) 3,000,000 shares of class B

Offering price, 10c a share.
Underwriter—
Brothers, New York
Proceeds—For producing

common.

Leven

oil.

is

offering 131,769 shares to present common stockhold¬
of record June 24 and holders o'f stock purchase

ers

for

warrants

at the rate of one common
Rights expire July 8.

subscription

share for each five

shares held.

June 7

filed 350,000 shares of common stock
(par $5)
20,000 shares of 4% convertible preference stock
(par $50).
Underwriter—Blyth & Co., Inc., New York

and

Offering—Prices by amendment. Of the 350,000 common
shares, 50,000 will be offered by company without un¬

derwriting to certain key employees.




The 20,000 shares

stort

geographic integration provisions of the Public Utility
Holding Company Act.
Business—Public utility an5
holding company.
u

preferred stock.

Fenner & Beane; The First Boston

pres¬

ent common stockholders in ratio of one share
of cumu¬
lative preferred for each 3V3 shares of common
held and
one share of convertible
preferred for each 1% shares of
common held.
Subscription price by amendment.
Pro¬

ceeds—Net proceeds will be used to pay entire
indebt¬
edness of Maryland Holding Co., Inc., a
wholly owned

Corp., Chillicothe, Ohio

(6/27)

May 21 filed 70,000 shares ($100 par) 4V4% cumulative
preferred stock and 101,056 shares ($50 par) 4% cumula¬
tive second preferred stock.
Underwriters—Drexel &
Co., and Harriman Ripley & Co., Inc. Offering—Pre¬
ferred stock is

being offered in exchange to holders of $6
cumulative preferred stock, series A, and $5.50 cumula¬
tive preferred stock, series B, on a share for share

plus

a

basis,
cash payment of $3,438 for $6 preferred and $3,313
for $5.50 preferred.
Second preferred shares are being
offered for subscription to common stockholders of rec¬

struction and equipment.

ord

on

For details see issue of May 23.

June

11

share for each
International Paper

For details see issue of May 2.

Menasco

$53

a

share

in

ratio

shares held.

of

one

new

Exchange and

(7/2)

May 31 filed 50,228 shares of cumulative preferred stock
(par $50), 4% series (convertible prior to April 1, 1956)
and 550,000 shares of common stork (par $5).
Under¬
writers—Blyth & Co., Inc.
Offering—-Stocks will be
fered to public.
Price by amendment. Proceeds—Will
be added to working capital.

Los Angeles

May 17 filed 370,000 shares of common stock. Under¬
writers—Sutro & Co., and G. Brashears & Co.
Offer¬
ing—Stock is being offered to shareholders of record
July 1 in ratio of two new shares for each five shares
held

at

$4

share.

Rights

expire July 22. Un¬
to public by under¬
$4.75 nor more than $10.
Proceeds—To repay unsecured bank loans; to pay first
instalment on purchase of plant from RFC; balance to
be added to working capital.
subscribed

Jack & Heintz Precision Industries, Inc., Maple

Manufacturing Co.,

(7/23)

writers

Heights, Ohio

at

seven common

subscription privileges expire June 26.

Co., New York

April 26 filed 400,000 shares of $4 cumulative preferred
stock (no par) and 100,000 shares of common stock
(par $15). Offering—Company is offering to holders of
its cumulative convertible 5%
preferred stock (par

•

at

per

shares
not

to

less

be

offered

than

Meredith Publishing Co., Des Moines, Iowa

(7/1.5)
25

June

filed

129,000

shares

($1

par)

common

stock,

Underwriters,—Stone and Webster Securities Corp.

Of¬

fering—To be offered to the public.

Hoppers Co., Inc., Pittsburgh, Pa.
June

(7/8)

Price by amend¬
Proceeds—Net proceeds go to three stockholders

ment.

of cumulative preferred
stock. Underwriters—Mellon Securities Corp. Offering-

who

New preferred will be offered in exchange, on a share
for share basis, for company's outstanding shares of

Farming."

18, filed

150,000

shares

Unexchanged shares will
public. Price—By amendment. Pro¬
ceeds—Net proceeds will
be used to redeem unex¬
changed shares of old preferred at $107.50.
be

cumulative

preferred.

offered to the

are

lishes

•

Wis. (7/8)

of 4V2 % ($50 par) cumula¬
stock. Underwriters—Wis¬
consin Co. Price—By amendment. Proceeds—Net pro¬
ceeds will be added to general funds.
For details see
issue of June 20.
•

Lennox Furnace Co.,
20

(letter

of

Marshalltown, Iowa

notification)

17,900

shares

of

4%

preferred stock (par $10).
Offering price,
$10 a share. No underwritings. Reimburse current funds
expended in redeeming prior issue of 6% preferred stock.
•

Long Island Airlines, Inc., Southampton, N. Y.
C7/2)

June

20

99,500 shares ($1 par)
Offering price, $3 a share. Underwriter
—L. H. Rothchild & Co.
Company also will issue 50,000
stock purchase warrants to the underwriter at lc each.
Net proceeds will be used to purchase four Grumman
planes and spare parts, an airport ramp and facilities,
and as working capital.
common

(letter of notification)

stock.

Loew

Drug Co., Inc., Corpus Christi, Tex. (7/8)'

(letter of notification)

54,000 shares ($5 par)
preferred stock on behalf of
the company and 54,000 shares of 10c par common stock
on behalf of stockholders.
Offering price, $5.50 a unit
consisting of one share of preferred and one share of
common.
Underwriters
First
Colony
Corp.,
and
Childs, Jeffries and Thorndike, Inc.
Proceeds to the
company will be used for general corporate purposes.
30c

cumulative

dividend

—

Business—Company pub¬
and
"Successful

selling the shares.

"Better

Homes

and

Gardens'.'

Michigan Gas & Elec. Co., Ashland, Wis. (7/12)

June 24 filed

$3,500,000 of series A first mortgage bonds,
cumulative preferred

due 1976; 14,000 shares ($100 par)
stock and 120,000 shares ($10 par)
derwriters—To

Le Roi Co., Milwaukee,

•

Corp., Chicago (7/8)

we<

capital

Underwriters will purchase un¬
The re¬
maining 14,000 shares of common stock will be offered
to "certain officers and employees."
Proceeds—Con¬
Price, $32.50 per share.

June 21

Hilton Hotels

par)

be determined
through comnptiti,'
bidding.
Probable bidders include The First BrJI6
Corp.; Kidder, Peabody & Co., and Blyth & Co
w
(jointly); Harriman Ripley & Co. Proceeds—The sharp,
are
being sold by Consolidated Electric and Gas Co
parent of Maine Public Service, in compliance
with

Mead

cumulative

Feb. 27 filed 215,000 shares of common stock
($2 par).
Shares are being sold by certain stockholders.
Stock

($10

Underwriters—To

(7/9)

Chicago

June

Hayes Manufacturing Corp., Gr. Rapids, Mich.

shares

150,000

Corp.,

June 17, filed 40,000 shares
tive convertible preferred

ore.

filed

25

mq

'

subsidiary, to Reconstruction Finance Corp.
Minerals

International

4%%

Gubby Mines, Ltd., Montreal, Canada
May 31 filed 500,000 shares of

Isle

Underwriters—Merrill Lynch Pierce
Corp.; Lehman Broth¬
ers, and Paine, Webber, Jackson & Curtis.
Offering-I
Stocks initially will be offered for
subscription to

include

ders

July 1.

17

Co., Preque

competitive bidding. Probable bid¬
& Co., Inc. and Mellon Securities
Corp. (jointly) and Morgan Stanley & Co. and W. E.
Hutton & Co. (jointly). Proceeds—Net proceeds from the
sale of preferred will be used to reimburse the com¬
pany's treasury for construction expenditures. Net pro¬
ceeds from the sale of common will be applied for re¬
Underwriters—By

consisting of six shares of preferred and four shares of
common.
No underwriting.
Proceeds—For purchase of
real estate, construction of buildings, acquisition of bot¬
tles, cases, machinery and other equipment.

June

Service

(7/15)

B01(1

Maryland Casualty Co., Baltimore

$100) the right to exchange 400,000 of such shares for
new preferred and common on the basis of one share
of new preferred and % share of common for each
share of 5% preferred.
Exchange offer will terminate

Great Lakes

Public

plu

developing
5

May 29 filed 239,940 shares ($10 par) cumulative prior
preferred stock and 479,880 shares ($5 par) convertible

9,000 shares ($10 par)
preferred and 6,000 shares ($10 par) common.
Of these
shares, 7,500 will be issued in exchange for a franchise.
Offering price of the remaining shares is $100 a unit
(letter of notification)

Maine

Decatur, III.

Power Co.,

and

June 17, filed 200,000 shares ($50 par) cumulative pre¬
ferred stock and 966,870 shares (no par) common stock.

stock (par $1).

mon

•

Colony

subscribed shares plus an additional 65 shares.

the company.

June

(letter of notification) 74,000 shares of 25c par
Offering price, $4 a share. Underwriter

stock.

May 21 filed 145,834 shares of common stock (par $5).
Underwriters—White, Weld & Co. Offering—Company

June 20 (letter of notification)
common

Hill, N. J.

(6/28)

preferred, $50 per share.

Graco Oil & Refining Co.,

organizations throughout the

Business—Exploring

company.

mining properties.
•

expand retail

'

Offering—Stock will be offered publicly in the U
s
a
share
(Canadian money).
Proceeds—Proeperf
estimated at $75,000, will be used in
operation of nf"

proceeds, the company expects to use about $8,079,000
for the purchase from Atlas Corp. of 84,744 shares of
common stock
of Bonwit Teller & Co. and remaining

quire and
country.

Mines, Ltd., Toronto

filed 250,000 shares of capital stock
(par 4n
—
Names to be supplied by amenrtm

7

40c

20 filed 495,700 shares ($1 par) common stock.
Underwriters—Blyth & Co., Inc., New York, heads the
underwriters.
Price by amendment.
Proceeds—Of the

exchange will be sold to Bly Jh & Co., Inc., and associates
for resale to tlje public. Price—Preferred, $100 per share;
second

(7/9)

June

Illinois

New York

27, 1945

Underwriters

added to working capital.

May 17 filed 150,000 shares of 4% cumulative first pre¬
ferred stock (par $100) and 150,000 shares of 4% cumula¬
tive convertible second preferred stock (par $50).
Un¬
derwriters—Blyth & Co., Inc.
Offering—Holders of

Mada Yellowknife Gold

of preference stock are being sold by C. N. Hilton, Presi¬
dent.
Proceeds—Net proceeds to the company will be

•

(7/1-5)

Thursday, June

be

determined

common

stock.

Un¬

by competitive bidding.

Probable bidders include Blyth & Co., Inc.; Kidder, Peabody & Co.; The First Boston Corp.; Harris, Hall & Co.
(Inc.); Merrill Lynch, Pierce, Fenner & Beane, and Ira
Haupt & Co.
Offering—New preferred will be offered
on
a
share for share exchange basis to holders of its
outstanding 7% prior lien, $6 no-par prior lien, 6 to
preferred and $6 (no par) preferred.
Such holders ac¬
cepting the exchange will receive a cash adjustment.

The Middle

West Corp.,

parent, has notified the com¬
holdings of 4,878 shares
of $6 (no par) prior lien stock for redemption instead
of the exchange.
The new preferred will be sold at
competitive bidding, subject to the exchange offer. Ot
the common stock being registered, company is selling
40,000 shares, Middle West is selling 57,226 shares and
Halsey, Stuart & Co. Inc., New York, is selling 22,774
shares.
Proceeds—Michigan will use net proceeds from
the bond sale to redeem its $3,500,000 of 3%% series A
first mortgage bonds, due 1972, at 106.75 plus accruea
interest.
Net proceeds from the sale of common ana
from shares of new preferred not issued in exchange
will be used to redeem $375,000 of 3V2% serial deben¬
tures, due 1951, at 101.2 and accrued interest.
It also
will redeem at 105 and accrued dividends all
pany that it will surrender its

changed shares of prior lien and preferred

Busi¬

stocks.

ness—Public utility.

Missouri Power & Light

Co.

(7/10)

May 22 filed $7,500,000 first mortgage bonds,

due

1976,

$4,000,000 ($100 par) cumulative preferred stocK.
Underwriters by amendment.
Probable bidders inclucm
and

Halsey,

Stuart & Co. Inc.

(bonds); The First

Boston

Number 4502

[Volume 163

THE COMMERCIAL & FINANCIAL
CHRONICLE

3525

Corp.; Blyth & Co., Inc.; Coffin & Burr, Inc.; Kidder
Peabody & Co.; White, Weld & Co., and Shields & Co!

Proceeds—Principally

(jointly).

refunding.

Bids

In¬

New Issue Calendar

vited—Bids for the purchase of the securities will be
received at office of Beekman & Bogue, Room 1922
15 Broad

Street, New York, N. Y.,

(EDST)'

up to 12 noon

(Showing probable date of offering)

July 10.
•

Montgomery Ward & Co., Inc., Chicago

June 24,

filed 1,304,286 shares (no par)

June 27,

(7/15)

Mead

Underwriters—No

underwriters.
Offering—The stock
will be offered for subscription to common
stockholders
of record on July 18, at the rate of one share for
each
four shares held.
Price—$50 a share.
the

to

Pennsylvania Electric

company's general resources. These funds will be used
to increase merchandise inventories and
installment ac¬
counts receivable and in an expansion and

Co., Albany, Ore.
stock

common

(no par).
Underwriters—To be determined by
competitive bidding.
Probable bidders include Blyth &
Co., Inc.; Kuhn, Loeb
& Co. and Smith Barney & Co.
(jointly); Harriman,
Ripley & Co.; The First Boston Corp. Offering—Shares,
which

Murphy Chair Co., Owensboro,

June

21

filed

136,877

Underwriters—The

shares

Bankers

($1

Ky.

par)

Trane

Common

Common

Paulsboro

July 10, 1946

of

office,

household,

and

Light Co..-Bonds and Preferred

!

Murphy Chair Co
Nugents' National Stores Inc
Oberman & Co

Philco

Common
Common

Preferred and Common

Preferred

Corp

July 11, 1946

Common

Wyandotte Hotel Co. Inc

Preferred

Corp

Debs, and Common

Manufacturing Co..-Preferred and Com.
July 12, 1946

Preferred and Common
Common

Michigan Gas & Electric Co..-Bonds, Pref. & Com.

Debentures and Common

Sunray Oil Corp

chair plant

July 3, 1946

formerly used by its now dissolved subsidiary, Murphy
Box Co., and for machinery and equipment for the
plant.
It will apply $35,000 for construction of a warehouse
and the remaining proceeds as
working capital. Business
—Manufacture

Preferred

Foods Co

Beatrice

Rome Cable

Verney Corp.

expenditures

new

Common

Common

Prestoll Corp.

the company, amounting to
$147,711, it will use $65,000
to reimburse its treasury or make further
a

Co

Preferred and Common

Long Island Airlines Inc
Murphy (G. C.) Co

Co., Inc., Louisville,
Ky., and Cruttenden & Co., Chicago, heads underwriters.
Price, $5.25 a share.
Proceeds—Of the net proceeds to

in the rehabilitation and expansion of

Corp.

Preference
Hoving Corp.
>
Common
International Minerals & Chemical Corp..Common

July 2, 1946

stock.

common

Common

Dana

Bonds

American Yarn &
Processing Co
Preferred
Florida Public Utilities Co
Common
General Cable Corp
Preferred, 2nd Preferred
Jack & Heintz Precision Industries Inc.—

Bond

Common
Common
Common

Co.

Missouri Power &

(7/10)

Preferred and Common

July 9, 1946
Budd

owned

are

Co. Inc

Radio-Keith-Orpheum Corp.
Spiegel Inc.
Stratford Pen Corp
■

Engineers Waterworks Corp
Debentures
General Builders Supply Co.-.Preferred and Com.
Sterling Electric Motors Inc
Debs and Common
Willys Overland Motors Inc
Preferred and Com

by Standard Gas & Electric Co. and
constitute 56.39% of the company's
outstanding common,
will be sold at competitive
bidding. Proceeds—Net pro¬
ceeds will go to Standard Gas.
•

Bonds and Preferred

(12 Noon EDST)
Chicago & Southern Air Lines Inc
Detroit Aluminum & Brass
Corp

Preferred

Loew Drug

All American Aviation Inc
Common
Booth Fisheries Corp
Preferred and Common
California Electric Power Co.—

tail stores and mail order houses.

140,614 shares of

Co

Common
Common
Common
Common
Preferred

Le Roi Co

July 1, 1946

improvement

program for its retail stores and mail order houses and
the opening of new stores.
Business—Operation of re¬

Mountain States Power

Manufacturing Co
Great Lakes Plating Co
Hilton Hotels Corp
Koppers Co. Inc

Forest City

June 28, 1946
American Investment Co. of Illinois
Preference
Gulf, Mobile & Ohio RR
Equipment Trust Ctfs.
Hungerford Plastics Corp
Common

Proceeds—Net

June 6 filed

Field & Stream Publishing Co

Preferred

stock.

common

proceeds, estimated at $64,876,228, will be added

1946

Corp

Allied

Stores Corp
Segal Lock & Hardware Co. Inc

July 15, 1946

Common

Class A and Common

Films, Inc
Maine Public Service Co....

July 5, 1946

institutional

chairs.

Preferred

Colmbia Aircraft Products Inc

Common

Capital Stock

Arkansas Western Gas Co

June

Common

Montgomery Ward & Co

Common

Newport Electric Corp
Rochester Telephone Co

Preferred
Bonds
Preferred

County Coal Corp
Dazey Corp.

(7/2)

13 filed 250,000 shares of common stock

Meredith Publishing

Boone

Murphy (G. C.) Co., McKeesport, Pa.

Common

Preferred and Common

North American Car Co

(par $1).

Portland Transit Co

Underwriter—Smith, Barney & Co.
Price by amend¬
ment.
Proceeds—Redemption of outstanding 4%% pre¬

Rudy

Furnace

Preferred

Solar

!_-Debentures and Common

Co

Co

Common

Manufacturing Co
Royalty Co

Transwestern

Common

U. S.

ferred stock at $109 a share plus dividends.

Capital Stock
Pfd. and Common

Spring & Bumper Co

July 8, 1946
•

N

& W

June 21
stock.

Overall

Co.

Inc.,

(letter of notification)

776

The shares will be offered

shares

on

Cargo Transport Corp
Common
Chadbourn Hosiery Mills Inc..-Preferred and Com.

of

common

Clinton Industries Inc

share for share

a

for

the

purpose

stock and assets of

National

of acquiring all

Cellulose

warrants

July 23, 1946
Menasco

Common

Common

Manufacturing Co

Magnolia.

Corp.,

May 31 filed 200,000 shares of
with

Capital Stock

Corp. of America

Preferred

*_

Derby Gas & Electric Corp

the outstanding

Container

Capital Stock

Consolidated Retail Stores Inc

exchange basis to holders of Magnolia Cotton Mills Inc.
stock

July 17, 1946

Air

Lynchburg, Va.

to

purchase

Syracuse, N. Y.
stock

common

20,000

shares

Underwriters—Floyd D. Cerf Co., Inc.

the

balance

common.

othe*

Offering—Stock

will

be offered to public at $6 a share.
The warrants
will be sold on the basis of one warrant for each 10
shares of common purchased.
Proceeds—Estimated net

proceeds of $1,020,000 will be used to pay off $61,000 of
loans, to purchase plant and equipment at an estimated
cost of $751,620 and the balance as additional
working
capital.

and

shares will be offered to

corporate purposes including the purchase of additional

common held.
Unsubscribed
public through the underwrit¬

Price—By amendment.

ers..

Proceds—For redemption

Oct. 1 of 1C,000 shares ($100 par) 6% cumulative pre¬
ferred stock, 1929 series, and 268 shares ($100 par) 6%
on

cumulative

preferred,

1931 series, at $110 and accrued

$197,000

Business—The

stores.

Claire

approximately

expansion and improvement of presehf
company and its affiliate, Befctt

the

and

stores

of

for

preferred for each share of

(par $1)

of

Fashions, Inc., operates

and misses'

a

chain of 30 women's

apparel stores.

dividends.

Oberman & Co., Jefferson

9

City, Mo.

(7/10)

San Diego, Calif.

June

Stock will be sold in the State of Vermont by

National Iron Works,

Norcross-Eldridge Inc., Rutland, Vt.
June 7 (letter of notification) 2,500 shares ($100 par)
preferred stock.
Price, $100 a share.
Underwriters—

Inc., New York, principal underwriter.
Offering—To be
offered publicly.
Price, $10 a share for preferred and

pany

May 21 (letter of notification) 18,500 shares of common
Offering price, $4.12% a share. Underwriters—

the

com¬

itself; in Massachusetts sales are to be made by

Kidder, Peabody Co.

For increasing working capital.

stock.

Nelson Douglass.

For general corporate

North American Car

Nevada Goldfield Mining Co., Tonopah, Nev.
June 17 (letter of notification) 160,000 shares (par 10c)
common

stock

on

behalf of the company and 80,000 and

60,000 shares of the

stock, respectively, on behalf
of Edward G. Frawley and Lionel A. West.
Offering
price, $1 a share. Underwriters—Frawley and West may
act

as

same

underwriters.

Proceeds—Proceeds

the

to

com¬

pany will be used for working capital.

Neville

Island

Glass

Co.,

Inc.,

June

14

filed

& Co.

and

Line

the

amount

parent

and

one

pro¬

Illinois
New

Co.

the

Proceeds—Net

Proceeds—Of the net

pro¬

will

assume

all of its assets and

North Western Refrigera¬
in
borrow the $1,000,000 from

liabilities and change name to

—Amott, Baker & Co., Inc.; Herrick, Waddell & Co.,
Buckley Brothers. Offering—Stocks will be offered
unit.

trust

of

company

$3,600,000;

company;

certificates

will issue serial notes

redeem $1,163,843

originally

issued by

of equipment

predecessor

and

$700,000 to be realized from the
sale of series A and B bonds, will be used for construc¬

off its current bank loans amounting to $3,600,000.
Business—Leasing tank and refrigerator cars on a rental

tion of

and mileage

ceeds,

tor

together with
a

plant

on

equipment.

Neville Island (near Pittsburgh) and
remaining proceeds will go into

9

New

June 20

•

(letter of notification)
common

of

2,960 shares of class A

($1

B

price, $100 a
No underwriting.
a

daily

stock, non-voting,

par) common stock,
share of class A and $1

and

740

shares

voting.
Offering
a share of class B.

Proceeds—For publishing and selling

Nugent's National Stores, Inc., N. Y.

Price, $6.75 a share.
Proceeds—The com¬
will receive net proceeds from the sale of 62,000
shares of the common and three selling stockholders
&

Newport

(R. I.)

Electric Corp.

(7/15)

will receive net

proceeds from the sale of the remaining

23,000 shares of common.

In addition, the company is

total

5

cents

of

50,000

each.

Net

stock purchase warrants at
proceeds to the company, estimated

$350,200, will be applied as follows: About $111,300
for the retirement of its outstanding preferred stock;

Corp.

$41,649 to purchase 100% of the stock of its two affiliates,
Beau Claire Fashions, Inc., and Nugent's Buying Corp.,

Offering—Shares initially will be offered for sub¬
common

stockholders in ratio of 0.13 shares of




gage notes.

riding breeches.
•

Oil

June

Incorporated, Salt Lake City

17

(letter of notification) 300,000 shares ($1 par)
common.
Offering price, $1 a share. The

non-assessable
shares

the

will

distributed

by officers and directors Of
For leasing, buying and developing oil

be

company.

properties.
•

Pan American Airways

June

21

filed

an

D$L

Corp., Wilmington,

unspecified number of shares

($2.50

capital stock, issuable upon exercise of stock pur¬
Underwriters—No underwriting. Offer¬

par)

chase warrants.

ing—For

issuance

Price:

on

exercise of stock purchase war¬
the

The stock purchase warrants evidence

right to purchase capital stock of the company at $18 a
share to Dec. 30, 1947.
Proceeds—To be added to general
funds.
Business—Air transportation.
9

Pan

Philippines Corp., Manila, P. I.

of notification) $300,000 of class A shares.
price, 25 cents a share.
No underwriters as
yet.
Rehabilitation of the Treasure Island Mine, oper¬
ated by the company, and replacement of machinery
destroyed by the Japaneses.

June 17 (letter

Offering

common

June 25, filed 7,732 shares ($100 par) cumulative pre¬
ferred stock. Underwriters—Stone & Webster Securities

scription to

preferred stock and about $300,250 to retire mort¬
The balance will be used for general cor¬
porate purposes.
Business—The manufacture of work
shirts and men's and boys' dress trousers, slacks and

tive

Co., Inc.

pany

a

•

(7/10)

selling to the underwriters and the selling stockholders

newspaper.

share for common.
Proceeds—Of the $1,055,000
net proceeds, the company will use approxi¬

rants.

basis.

June 21
filed 85,000 shares
($1 par) common stock.
Underwriters—Newburger & Hano, and Kobbe, Gearhart

Hampshire Daily News, Inc.

($100 par)
class

pay

Any

Working capital.

a

mately $189,000 to retire its 1,890 shares of $6 cumula¬

convertible

Co.; $200,000 to reimburse the company's treasury
for its original investment in the capital stock of the
new subsidiary.
Company has purchased the entire out¬

to the public in units of one share of class A
a

(7/5-7)

Car

and

$10.10

cumulative

Underwriters—Glore, Forgan

Price by amendment.

tor

at

$2

ceeds, $1,000,000 will be issued as a loan to a new sub¬
sidiary whose name tentatively is Illinois Refrigerator

dissolved

common

Corp., Chicago

shares

preferred stock (no par).

June 3 filed 60,000 shares of class A stock (par $1) and
60,000 shares of common stock (par 10c). Underwriters

share of

36,000

standing shares of common of North Western Refrigera¬
tor Line
Co. for $3,600,000.
North Western will be

Pittsburgh

$6

estimated

purposes.

9

80,000 shares ($10 par) 5% cumulative
convertible preferred stock and 75,000 shares ($1 paff)
common stock.
Underwriters—Herrick, Waddell & Co.,
filed

21

at

Paulsboro

filed

(N. J.)

Manufacturing Co.

(7/2)

9,886 shares 6% cumulative preferred
(par $100); 31,000 common stock purchase warrants and
31,000 shares of common, issuable upon the exercise of
(Continued on page 3526)

March

29

THE COMMERCIAL & FINANCIAL

3526

Underwriters—Butcher & Sherrerd, Phil¬

the warrants.

Offering—1,886 shares of 6% cumulative pre¬
offered in exchange (one new share for 10
old shares) for shares of 4% preference stock ($10 par),
together with all dividends accrued thereon. Exchange
offer is conditioned on purchase of remaining 8,000
shares of 6% cumulative preferred and of the 31,000,
common stock purchase warrants by underwriter.
Pro¬
ceeds—Piirchase or construction of a plant and nec¬
essary machinery and equipment.
For details see issue
of April 4.

not

adelphia.
ferred

are

owned by

now

filed

6

prior preferred

shares of 4V2%

880,561 V2

(par $20); 176,112 shares of class B common stock

stock

(par $5) and 880,561 warrants to purchase class B com¬
mon shares.
Following rejection of recapitalization plan

Joseph Solari, Vice-President,
requesting withdrawal

June 24 by stockholders,

announced he had written to SEC

of the registration

statement.

Pennsylvania Electric Co.
March

(6/28)

$23,500,000 first mortgage bonds, due
1976, and 101,000 shares of cumulative preferred stock,
series C, par $100.
Bonds awarded June 26 to Halsey
filed

21

Stuart

&

Co.

Inc.

bid

on

101.78

of

2%%

for

coupon.

Preferred issue awarded June 26 to Kuhn, Loeb & Co.,
Lehman Brothers and

Drexel &

Co.

bid of 100.5191

on

Reoffering of bonds will be
made at 102.47 and the stock at 102.50 a share.

for

•

dividend rate of 3.7%.

a

Philco

Corp., Philadelphia

(7/10)

June 20 filed 100,000 shares

A.

series

($100 par) preferred stock,
Underwriters—Smith, Barney & Co., New

York, heads underwruers.
licly.

Price,

by

will be added to

to

Proceeds—Net proceeds

amendment.

cash funds which may be used in the

construction of plants and facilities esti¬

purchase and
mated

Offering—To be offered pub^

cost

$13,000,000.

Business—Manufacture

of

radios, radio parts, television sets, household refriger¬
ators and air conditioning equipment.

and
by
Reported Allen & Co., probable under¬

amendment.

capital.
•

(letter of notification) 24,000 shares of $1 par
stock.
Offering price, $1 a share.
No under¬

•

Telephone Co.

(N. Y.)

Rochester

(7/15)

$6,238,000 of 2J/2% first mortgage bonds,
1981.
Underwriters—To be determined
by competitive bidding.
Offering—To be offered pub¬
licly.
The bonds were issued and sold by the company
to Halsey, Stuart & Co. Inc. last April 30 for Halsey's
own account and not for public distribution.
The price
A,

due

plus accrued interest from
April 1 to April 30, together with a premium of $32,000.
Under the agreement the company agreed to register
the bonds, and that when and if the registration state¬
100% of principal amount

was

the

effective

becomes

ment

will

company

offer

the

Halsey granted the company
an option to
purchase the bonds from Halsey at 100%
plus accrued interest and a $32,000 premium.
Halsey
further agreed to submit at the competitive sales bid
of 100%
of the principal amount of the bonds plus
accrued interest together with a premium of $32,000.
Price to be determined by competitive bidding.
Pro¬
ceeds—Rochester will use proceeds from the previous
sale of the bonds together with other funds to redeem
$5,000,000 of first and refunding 3J/2% mortgage bonds,
series F, on July 1 and to redeem $1,238,000 of 27/s%
first and refunding mortgage bonds on Oct. 1.
Business
—Telephone service.
bonds at

Pittston Co., Hoboken, N. J.

(INLY.)

Cable Corp.

preferred stock (par $30). Underwriters—Carl M. Loeb,
Rhoades & Co.
Offering—Shares are offered for sub¬

Blair & Co., Inc.
Offering—Price to public by amend-?
ment.
Proceeds—Payment of promissory notes aggre¬

rate of

gating $8,000,000.

For details see issue of May 16.

Portland Gas & Coke Co.,
June

filed

11

Portland, Ore.

$10,000,000

first mortgage bonds, series
due 1976.
Underwriters—To be decided by competitive
bidding.
Probable bidders include Blyth & Co., Inc.;
Smith, Barney & Co.; Halsey, Stuart & Co., Inc.; The
First Boston Corp., and Kidder, Peabody & Co.
Offer¬
ing—To be offered to public.
Price—To be decided by
competitive bidding." Proceeds—To retire long-term
debt, etc.

filed

shares

63,276

of

common

share of preferred

one

tories.

Rudy Furnace Co., Dowagiac, Mich.

(7/5)

(Ore.)

Transit Co.

Proceeds—Net

proceeds, estimated at $244,770, will be

off bank loans of approximately $230,000
working capital.

pay

convertible debentures due
1966, and 200,000 shares of common stock (par
$1); also an additional 128,750 common shares for con¬
version of debentures. Underwriters—First California Co.;
Scherck, Richter & Co.; Weeden & Co.; Allen & Co., and
Rauscher, Pierce & Co. Proceeds—To complete payment
of purchase price for the capital stock of Portland Trac¬
tion Co. and the properties of the Interurban Railway
June 1,

Division of Portland Electric Power Co., working capital,
etc. Offering prices by amendment.

Prestole Corp., Toledo,
June

12

filed

22,500

Ohio

(7/2-5)

shares

($10 par) 5% cumulative
convertible preferred stock and 60,000 shares of common
stock (par $1).
Underwriters—Ball, Burge & Kraus,
Cleveland, and Stoetzer, Faulkner & Co., Detroit. Price

by amendment.

Proceeds—Of estimated

($477,000) net
$163,192 as balance of pur¬
chase price of assets and business of Prestole Division

proceeds, company will

ing and operating a large home-furnishing store; $750,000
to pay the annual instalment on its 2J/2% serial notes-

balance, working capital.
State Loan Co., Mount

•

division;

Co.; $50,000 for inventories of Pres¬
$63,400 as additional cost of plant at

Toledo, Ohio, and remaining proceeds for purchase and
installation of additional machinery and equipment and

working capital.

Radio-Keith-Orpheum Corp., New York
670,000 shares of

(7/8)

stock

(par $1).
Underwriters—Lehman Brothers and Goldman, Sachs &
Co.
Price—By
amendment.
Proceeds—Atlas
Corp.,
owner

21

(letter of notification) warrants received by
Segal entitling him to purchase 39,920 shares of

Louis

common

at 25

common

May 31, is selling 650,000 shares of the
offering and will receive proceeds from these

shares.

on

The balance of 20,000 shares are to be purchased

from the company by underwriters through the acqui¬
sition and exercise of option rights granted two company

officials.
exercise

The company will receive $160,000 from the
of the option rights which will be added to

Rangely Petroleum, Inc., Denver, Colo.

June 17

(letter of notification) 6,000,000 shares (par 5c)
stock.
Offering price, 5 cents a share.
No
underwriting. Proceeds—For oil and gas prospecting.
of

a

To be sold

right

or

a

New York Curb Exchange

on

total of $19,960.

Co., broker.

Otto Fuerst &
,

Segal Lock & Hardware Co., Inc., N. Y.

(7/3)

March 30 filed 738,950 shares of common (par $1). Un¬
derwriters—Floyd D. Cerf & Co. Offering—Holders of
common stock, 7% preferred stock and $2.50 cumulative
preferred stock of record June 13 are given right to
subscribe at $4 per share to new common shares at a
one

share of

common

for each two shares of any

stock held.

Rights expire at 3 p.m. July 2. Proceeds—
Purchase of additional machinery and equipment for
modernization of present facilities, etc.
For details see
issue of April 4.

14 filed

vertible

common

80,000 shares of $1.12% cumulative con¬
preferred stock, series A (par $20).
Under¬

writers—Van

Alstyne, Noel & Co.

Price by amendment.

Proceeds—Net proceeds will be applied for the
redemp¬
tion of outstanding series A convertible preferred stock
which

are

also

not converted into

will

be

used

common

for

stock.

Stratford Pen Corp.

manufacturing
facilities in the amount of $600,000; for additional inven¬
tory amounting to $400,000, and for additional working
capital.

Brothers

Inc., New York

June

11 filed 80,061 shares
(50c
Underwriters—No underwriting.

offering to

exchange

stock for each of the

29^

par)

common

stock.

Offering—Company is

shares

of

50c

par

common

1,983 shares of common of Grace
Cotton Mills Co.,
Rutherfordton, N. C., not now owned
It also is offering to exchange 88/100ths of a
by it.
share of common for each of the
24,500 shares of com¬




Co., New York

June 4

(letter of notification)

13,000 shares of

stock.

Stock

on

will

be

offered

the New

100,000 shares of common stock (par $1).
Underwriters—First Colony Cor|).
Proceeds—To selling
stockholders.
Offering—Price to public, $9V4 per share.
Of

exceed

$100,(100.

Development Co.,

owner

Proceeds

of the

will

stock.

be made any time within next three
upon market conditions.

5,000

above,

$8.65

shares

go

York

to

reserved

are

for employees at

share.

per

Steep Rock Iron Mines Ltd., Ont., Can.
March 27 filed 500,000 shares of capital stock

(par $1).
Offering—Price to public by
Proceeds—Net proceeds will be added to

Underwriters—Otis & Co.
amendment.
the

general

funds

will be available for general
For details see issue of April 4.

and

(7/1-5)

Sterling Electric Motors, Inc.

May 27 filed $500,000 15-year 5% sinking fund deben¬

1961, and 29,709 shares common s.Ock (par
Underwriters—Maxwell, Marshall & Co. Offering
—Debentures will be sold to public at $1,000 each and
common at $3.50 a share.
Each $1,000 of debentures will
have attached a detachable stock purchase warrant for
purchase of 100 common shares. In addition, four stock¬
holders of the company will sell to the principal under¬
writer warrants for 19,591 common shares at 7 cents a
tures, due

$1).

Proceeds—To

construction

finance

addi¬

of

tional-factory building; purchase equipment and machine

tools|retire current bank loans and working capital, etc.
•

Sunray Oil Corp., Tulsa, Okla.

(7/12)

filed

$20,000,000 20-year debentures, due 1966,
1.000,000 shares ($1 par) common stock.
Under¬
24

headed b,y Eastman, Dillon

& Co. Offerings—
ProCompany will use $25,500,000 of the net proceeds
to retire 255,000 shares of 4J/4%
cumulative series A
preferred stock at $100 a share and $13,029,250 to re¬
deem'$12,350,000 of 15-yeal} 3%% sinking fund deben¬
tures, due 1959, at 105 V2.
The remaining proceeds will
be used to reimburse its treasury for expenditures to
be made in redemption of its 4V2% preferred on July 17
at $41.50 a share plus accrued dividends.
Business—The
production and refining of crude oil and its products ahd

•{fee

are

Price, by amendment.

offered to the public.

the sale of natural gas.

• "

Superdraulic Corp., Dearborn, Mich.

,

,

Jijjje 20 (letter of notification) 299,000 shares ($1 par)
common stock.
Offering price, $1 a share. Underwriters
-r&ytle and Co., Inc., and Carr and Co. Of the proceeds,
$l#9r000 will be used to construct a factory building
and the balance will be used to purchase land, office
furniture

and

equipment

Yhalhimer Brothers,
June

10

filed 25,000

and

working capital.

as

Inc.,

Richmond, Va.

shares cumulative

preferred stock

(par $100).
Underwriter—Kidder, Peabody & Co.
fering—Price by amendment.
Proceeds—General

Of¬
cor¬

porate purposes.

Tonopah Belmont Consolidated Mines

Co., Reno,

Nev.
June

21

(letter

par common

550,000 shares of 50c
Offering price, 50c a share. Under¬

of notification)

stock.

writer—Arthur C. Langan, Reno.
tion of mill and recondition

Proceeds—For erec¬
production.

of mine for ore

Torrington Manufacturing Co.,

Torrington, Conn.

9,700 shares of $25 par
common stock to be offered to present common stoc holders at the rate of one-half share for each share hei •
June

6

(letter of notification)

Offering price, $27.50 a share. No
working capital and possibly to the

underwriting.
reduction of seri

loans.

common

Traders

Stock

Exchange through Lewisohn & Co., at market (approxi¬
mately $7), but in no event shall the total price to the
public

(7/8-12)

filed

June 5

Such pro¬

additional

South American Gold & Platinum

Reeves

Proceeds—For general corporate purposes.

share.

a

•

June

Rainier, Md.

(letter of notification) 260 shares of preferred

profit-sharing stock. Offering price: To be sold to key
employees of the issuer at $44.70 a share and to key
employees of subsidiary or affiliate companies at $100

Solar Manufacturing Corp., New York (7/15-19)

ceeds

working capital.
•

stock.

cents

of 1,329,020 shares of common of RKO (approxi¬

mately 35%)
total

For details see issue of May 30.

plant, etc.

Segal Lock & Hardware Co., Inc., N. Y.

rate of

June 18 filed

17

June

writers

use

of Detroit Harvester

tole

ment and

June

shares of common
$2).
Underwriters—Glore, Forgan & Co
Offering—The shares will be offered for sub¬

Price—By amendment. Proceeds
—$3,050,000 to pay off short-term bank loans; $1,400,000
to acquire all of the capital stock of a corporation own¬

and

Sardik Food Products Corp., New York

May 29 filed 175,000 shares of capital stock (no par).
Underwriter—George F. Breen, New York. Offering—
Stock will be offered to public at $16 a share with un¬
derwriters receiving a commission of $2 a share. Of the
total being offered company is selling 155,000 shares and
the remaining 20,000 shares are being sold by two stock¬
holders.
Proceeds—Working capital, purchase equip¬

•

(7/8)

share for each share held. Unsubscribed shares will be

June

(7/5-6)

June 14 filed $1,250,000 4%

advances

(par

Chicago.

and to increse

Portland

Proceeds—To repay in full
Telephone and Telegraph Co.

19 filed a maximum of 329,580

warrant.

June 14 filed 100,000 shares of common stock (par $1).
Underwriters—Keane & Co., Detroit.
Price, $3 a share.
to

share to stock¬

scription to common stockholders at the rate of Vsth of

convertible

cumulative

stockholders of record June 24 at
for each three shares of
common held at $30 per share.
Rights expire July 10.
Proceeds—Net proceeds will be used toward completion
of a construction program and to carry larger inven¬
scription to

used

16.

corporate purposes.

(7/11)

May 9 filed a $7,000,000 15-year 4% debentures due
April 1, 1961, and $1,242,300 20-year 5y2% cumulative
income debentures due J5n. 1, 1964.
Underwriters—

29

a

competitive sale.

Rome

May

$120

offered to the public.

June 26 filed
series

at

Spiegel, Inc., Chicago

a

Proceeds—For working capital.

writing.

July

expire

stock

Mining Corp., Stanton, Ariz.

Hill

subscription

from American

June

Rich

for

offered

holders of record June 25, in the ratio of one share for
each four shares then held.
Subscription warrants will

amendment.
Proceeds;—
will be added to working

by

Offering—Terms

writer.

Net proceeds to the company

common

June

be

(no par),

100,000 shares are being sold by company
by
stockholders.
Underwriters—Names

June 20

Peabody Coal Co., Chicago

100,000 shares of capital stock (par $100)
Underwriters—No underwriting? Offering—Shares wili

Reynolds Pen Co., Chicago
of which

England Telephone Co.

June 6 filed

it.

May 4 filed 400,000 shares of common stock
300,000

Southern New

Mills, Spartanburg, S. C.,

of Warrior Duck

stock

mon

(Continued from page 3525)

Thursday, June 27,1946

CHRONICLE

General

Offering is to
months, depending

Post, Inc., Greenville* Miss.

(letter of notification) 2,000 shares of 5% pre"
ferred stock and 9,000 shares of common (no Par)*
fering price, $50 a share of preferred and $1 a share
common.
Underwriter—Stock will be offered by Hen y
May 31

T.

Crosby & Co., Greenville, Miss.

estate indebtedness.

For paying

off re

Volume

•

Number 4502

163

Trane

THE COMMERCIAL &
FINANCIAL CHRONICLE

Co., La Cross, Wis.

(7/9)

June 20 filed 59,505 shares of

common stock (par $2) of
being sold on behalf of company
anij 13,600 on behalf of three stockholders. Underwriter

shares filed 45,905

—Cruttenden

&

are

Co.

Proceeds—For

plant

additions,

improvements, etc., redemption of 6%

preferred stock
Business—Manufacturers of heat¬

and working capital.

Trans western

■

•

amendment.

17

(letter of notification)

2,000 shares

Pierce,

(par

$10).
E.

Part of the shares

Cramblet, Jr.
Proceeds—To be used for general
operation of the busi¬

Royalty Co., San Antonio, Tex.

(7/15)

Wisconsin, who

June 25, filed 75,000 shares

underwriters.

Offering—The stock will

be

offered

for

subscription to holders of capital stock of Transwestern
Co.

Oil

at

ra.e

of

share

one

of

Transwestern

Royalty

stock for each 10 shares of Transwestern Oil stock held.
Transwestern Royalty was incorporated in June 1946

tO" acquire

from

Transwestern

Oil

all

its

oil

and

gas

royalty interests.
The acquisition is a preliminary step
to the merger of Transwestern Oil into Sunray Oil
Corp.
Price—The subscription price is $12 a share.
Proceeds—

$750,000 to repay a bank loan; balance for working capiBusiness—Ownership and management of oil and
gas basic royalty interests.

ital.

f,

• .Trusteed

Funds,

June 21 filed
theoretical
Trust

sales

1,500 plans C, 500 plans D

units

Plans
of

Inc.

C

of

Commonwealth

and

securities

D.

for

and

Fund

2,000,000

Indenture

Underwriters—Purchases

the

Fund

of

and

made

by Studley,
investment managers.

are

Shupert & Co., Inc., the Fund's
Price, at market.
Proceeds—For investment.

Verney Corp., Boston, Mass. (7/2)
May 29 filed 150,000 shares of common stock

shares

are to be issued to the
several underwriters
upon
conversion of company's 5% cumulative
convertible pre¬
ferred stock owned
by the selling stockholders.
For
details see issue of
May 30.

United

writers—Allen

& Co.

Offering—Prior preferred stock¬
holders will be given privilege of exchanging such shares
for shares of new convertible preferred stock at rate of
four shares of prior preierred for one share of con¬
vertible preferred with a cash adjustment.
Convertible

preferred not issued under the exchange offer will be
sold to underwriters and offered to public at $100 per
share.
For details see issue of May 19.
•

United States

Western

Angeles

June 24, filed 30,000 shares ($50 par) 4V2% cumulative
convertible preferred stock and 80,000 shares ($1 par)
stock.

common

Underwriters—Dean Witter & Co.

fering—To be offered publicly.

Proceeds—Company will

Of¬

Price—By amendment.

$950,000 of net proceeds to

use

| retire long verm bank loans; $750,000 to retire short term
| loans; about $400,000 for machinery and equipment; any
remaining to

working

capital.

Business—Manufacture

of automobile leaf springs, bumpers, and fender guards.

Vacuum

Concrete

Offering—Price, $10

Foods

Co.,

Inc.,

Corp.,

share.

a

Willys-Overland Motors, Inc., Toledo

12

held

at

$100

Kans.

public

not exercise their

the

series A

subscribed

Certain

stockholders

a

preferred, which together with shares

for

underwriters.

by

other

stock

holders

will

be

not

sold

Unsubscribed

common

share.

per

shares

will

be

purchased

to

holders

will

to

public,

$11

per

share.

Prospective

outstanding options.

Air Services,

April 1
shares

reported planning sale of 150,000
stock through B. G. Cantor & Co.,

of

common

New York,

as

Price about $2 per share.

underwriter.

Company's

headquarters will be located within eight
miles of New York City.
Principal business will be
student training and charter service.

($14,000,000) would
financing present and proposed facilities
Inc.,

viding for the purchase from
issue of 1,000,000 shares at $14
the

made by the ABC pro¬
it of the entire proposed

a

share.

Sale of the stock

public by Dillon, Read & Co., will be at $15

a

American Gas & Power Co.
company (name to be changed to Minneapolis
Co.), under modified plan approved by SEC, reserves
right to make public offering of not in excess of 874,078

shares of

stock

corporation.
Probable bidders include
Glore, Forgan & Co. and Lehman Brothers (jointly),
and Blyth & Co., Inc., and Merrill Lynch, Pierce, Fenner

White, Weld & Co., W. C. Langley & Co., Otis & Co.

& Beane

June

,

the

(jointly).

American

May 23

Broadcasting Co.,

company

sion to offer

a

New York

issue of 1,000,000 shares of stock

new

American

common

stock.

Overseas

Probable bidders include

Airlines,

(par $1).

bidding.

Co.,

Probable bidders

Inc.

Interest

rate

For details

by

Proceeds

issue of May 9.

see

Young Radiator Co., Racine, Wis.
Jan. 29 filed 100,000 shares of
also registered
40,000 shares of

exercise of warrants.
&

Co.

stock

common

common

40,000 warrants

to

Underwriters—Van Alstyne, Noel

purchase

10

cents

are

warrant

per

For details

share.

being sold to

share.

see

Of

$8.25 per

issue to stock¬

were

20,000

at

per

stock at

common

share prior to Feb.
1, 1951, 20,000
holders on recapitalization and
underwriters

(par $1);

for issuance upon

Offering—Price to public $8.25

Offering

issue of Feb.

7.

for

the

corporation's

stock

the issue and sale of additional
to meet

and

thus

facilitate

shares to provide funds

enlarged capital requirements.

writers, if new financing is undertaken, include Emanuel
Deetjen & Co. and Lehman Brothers.
Arkansas Power & Light Co.,
March

30

shares

common

reported

Probable under-

Little Rock, Ark<

planned

to issue 290,000
$12.50) and $5,000,000 in
purpose of paying current promis¬
sory notes and finance expansion program.
Probable
bidders include Dillon, Read & Co.
Inc.; The First Bos¬
ton Corp., and Blyth &
Co., Inc.
company
stock
(par

promissory notes, for

•

Armour &

Co., Chicago

June 23, a recapitalization program
providing for retire¬
ment of present outstanding preferred shares and elim¬

inating of

arrears,

involving issuance of

new

stocks and the sale of additional shares of

bonded debt

25, in connection with 3-for-l split-up of 1,000,000

market

to

&

together with the refunding of

Inc.

shares of capital stock to be voted on July 11, it is stated
that the split-up is for the purpose of broadening the

filed with FCC application for permis¬

new

•

stock

common

Offering—Price by amendment.

—Refunding.

with

whom arrangements have been

Gas

reported that Alien Property Custodian may
on 535,000 shares (77.24%)
of the

It is estimated

rooms.

REGISTRATION)

shortly ask for bids
of

Stuart

postponed indefinitely.

April 10
16

Halsey,

amendment.

Proceeds—

Estimated net proceeds

be devoted to

June 25 stockholders approved proposal that present
7% preferred stock be exchanged for new 4Vfe% issue.

April

and

issue of Feb. 21.

see

Will be sold at
competitive

being

share.

American Bosch Corp.

For details

include

by

of company. The public offering of
stock, if approved,
will be made through Dillon, Read & Co.

to

American Bemberg Corp., New York {

debenture

Proceeds—Pro¬

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

the public.

Inc., New York

company was

are

$200
unit.

Security Offerings

(NOT YET IN
•

stock

common

a

York (Pa.) County Gas Co.
May 8 iiled $1,700,000 first mortgage
bonds, due 1976.

Net proceeds will be added to the general funds.

Price

and

one

loan, Will be used for purchasing
constructing, furnishing and equipping a

and

funds.

Similar rights with

offered

preferred

site

of

$210

at

a

Underwriters—J. J. Carrick, Ltd., Toronto, Canada. Of¬
fering—Price to public 25 cents per
share, United States

All rights expire June 26.

the

agents.

consisting

Yank Yellowknife Gold
Mines, Ltd., Tor., Ont.

eight

$20

to

as

units

$1,600,000.

Company is also offering rights to stock¬

of

in

to

holders of record June 12 to subscribe for
310,290 shares
of common stock at rate of one new share for each
shares held at

income deben¬

offered

modern hotel of not less than 230
the total cost will be

will

rights with respect to 46,773 shares of

V4%

Kan.

to the public
through a campaign di¬
by the Chamber of Commerce of Kansas
City,
Offering—The securities will be offered to the

two shares of common

(7/1)

respect

act

be

Feb. 13 filed 600,000 shares of

May 28 (letter of notification) 25,000 shares of common
stock (par $1).
Underwriter—Eastman, Dillon & Co.

I

will

subscribe for the series A
share for each 16 shares of com¬

share.

per

Kansas City,

tures, due
1976,^ and 10,000 shares common stock (no
Underwriters—No underwriting.
The securities

rights to
one

Inc.,

par).

Underwriters—Kuhn, Loeb & Co., and E. H. Rollins &
Sons, Inc. Offering—Company is offering to stockholders
June

New York

(letter of notification)
capital stock.
Offering

June 10 filed
$1,000,000 of 30-year

17 filed 155,145 shares of $4.50 cumul.
preferred
stock, series A (no par), convertible on or before Dec.
31, 1953), and 310,290 shares of common stock ($1 par).

record

Plastics Corp.,

Co.

140,000 shares of com¬
price, $2 a share.
Under¬
King, Libaire, S.out & Co., New York.
Proceeds—For plant
expansion, machinery, chemicals
and working
capital.

May

of

Utilities

17

mon

Proceeds—Debt payment,

Willys Real Estate Realization Corp.

Philadelphia

Watsonville,

the

upon

West

writer— Eisele &

plant and equipment and working capital.

mon

(7/15)

stock.

June 6 100,000 shares of 5%
cumulative convertible ($10
par) preferred stock.
Underwriter—First California Co.
new

elect to sell such shares of
Wisconsin
be distributed to them

ceeds, together with

Frozen

preferred at rate of

Spring & Bumper Co., Los

Worne

rected

Underwriters—No underwriting.
Price, at market. Pro¬
ceeds—For investment.
Business—Investment business.

by Middle West Corp.,

will

Wyandotte Hotel Co.,

Wall Street Investing
Corp., New York
June 19 filed 100,000 shares
($1 par) capital

Calif.

Cigar-Whelan Stores Corp., N. Y.

•

June

•

—Investment fund.

which

dissolution of North

Virginia Red Lake Mines, Ltd.
June 24 filed
220,000 shares of capital stock (par $1—
Canadian).
Underwriters—Willis E. Burnside &
Co.,
New York.
Offering—Offering price to public 28 cents
United States funds. For details see issue
of Aug. 2,1945.

Business

May 14 filed 50,000 shares of convertible preferred stock.
Cumulative dividend, $3.50 per annum (par $100). Under¬

common

(par $2.50).
Underwriters—F. S. Moseley & Co.
Offering—Price
by amendment.
Of shares
being offered an unspecified
amount is owned by
selling stockholders and remaining

to be sold

are

top holding company of the
System, and part by pref¬
erence stockholders of
North West Utilities
Co., pareni
of

ness.

($10 par) capital stock and
subscription warrants for the stock.
Underwriters—No

Probable bidders
Fenner & Beane;

include Merrill Lynch,
White, Weld & Co.; Glore,
Forgan & Co., and Harriman
Ripley & Co. (jointly);
The Wisconsin
Co., and Dillon, Read & Co. Proceeds-

Valley Aviation, Inc., Bethany, W. Va.

June

3527,

Wisconsin Power & Light
Co., Madison, Wis.
May 21 filed 550,000 shares ($10
par) common stock to
be
sold
at
competitive
bidding.
Underwriters—By

expand and develop patents, and for
working capital.

Offering price, $10 a share. Underwriters—Thomas
Cramblet, Dr. W. JR. Cramblet, Wilbur H.

ing and air conditioning equipment.
•

Proceeds—-To purchase additional
equipment; to acquire
assets of Vacuum
Concrete, Inc., by retiring remaining
outstanding stock and liquidation of its
liabilities; to

stock

portion of company's
The plan calls for retire¬

announced.

was

preferred

common

a

ment of

532,996 shares of $6 prior preferred and 33,715
shares of 7% preferred stock.
To effect such retirement

the

company

preference
stock

The

and

issue

to

proposes

stock,

300,000

shares

350,000
of

shares

second

1,355,240 additional shares of

common

first preference stock will have

new

of

a

first

preference
stock.

stated value

of $100 a share.

These shares will be offered to holders
of the present $6 prior
preferred at the rate of 1 4/10ths
of new stock for each share of old stock held.

shares

United States Government,

The

First California Company

State, Municipal and

new

second preference stock also will have a stated

value of $100 a share and will
mon

"at

a

I N C □ R PU RATE D

rate

to

be

fixed

be convertible into

by

the

board

com¬

of directors

not

Corporate Securities

exceeding 5^2 shares of common stock for each share
preference stock." Second preference stock,
together with such shares of the first preference stock as

of

Underwriters and Distributors

second

are

Blair 6-

Co.

inc.

Serve

NEW YORK

boston

Our Sixteen

Offices

California and Nevada

not

exchanged for the $6 prior preferred stock, will

be sold to the public through an
headed by Kuhn, Loeb & Co.

underwriting syndicate

Net proceeds from sale of the second

preference stock
applied to the redemption of the unexchanged
$6 prior preferred stock and the outstanding
shares of 7% preferred stock.
The 1,355,240 shares of

will

be

shares of
buffalo

philadelphia

chicago

pittsburgh




cleveland

st. louis

Head Office: San Francisco

additional

common

will

be

(Continued

offered

on

page

for

3528)

sale

to

present

3528

THE COMMERCIAL & FINANCIAL CHRONICLE

r*

<u,

(Continued from page 3527)

common

basis.

Century Manufacturing & Instrument Co.

stallholders by issuance of negotiable warrants

for the purchase of the additional shares

on

a

pro

rata

It is contemplated that the offering price of the
shares to present shareholders will be below

common

market price and it is expected that the warrants
will be traded on the New York Stock Exchange.

Philadelphia

any

underwriting arrangement.

Atlantic Refining Co.,

Philadelphia

May 7 stockholders approved proposal to increase the
company's indebtedness from time to time by additional
amounts not in

•

Chesapeake & Ohio Ry.
June 18 reported that probably one of the early devel¬

Ry. and the Pere

stockholders at $10 per share.
Proceeds for expansion
and working capital.
Management does not anticipate

of

excess

$50,000,000 in aggregate. The
purpose of the plan, it was said, is to place the company
In a position to fund bank loans, add to working capital
and to provide funds for capital expenditures. Probable
underwriters include Smith, Barney & Co.

will be
a refunding operation to take in the debt of both roads.
C. & O., it is expected, will take steps to refinance the
refunding and improvement 3y2S, due in 1996, of which
$37,500,000 series D and $27,600,000 series E were out¬
standing at the close of 1945. The Pere Marquette has
outs landing $59,749,000 first mortgage 3%s, series D,
due in 1980. At the ICC hearings in April on the merger
proposal, W. H. Wenneman stated that refinancing of

April

Imperial Diesel Engine Co., Oakdale, Calif.

19

stockholders

voted

Ry.

approved

is

the Pere Marquette issue would be undertaken

promptly

merger.

used

to

redeem

first

mortgage

4%

bonds,

1994,

plans

for

were

the

retirement

of

bonds

the

July

Inc.

#

create

Baltimore

•

June 22 it

&

new

Chip RR.

refundings. Among the roads whose refinancing

programs may then

named
the

crystallize, the Baltimore & Ohio is
leading prospect, now that all barriers to

a

as

consummation

of

its

$500,000,000

debt

adjustment
plan have been eliminated.
Other portions of the debt
now thought to be attractive
possibilities for a refinanc¬
ing operation besides the $76,900,000 of first mortgage
4s and the $67,800,000 first mortgage 5s.
There are
$37,200,000 of Southwestern Division 5% bonds, $36,800,,000 Pittsburgh, Lake Erie & Western 4s, and $10,000,000

Toledo-Cincinnati

Division mortgage series A 4s.

Prob¬

able

bidders, if refunding operations crystallize,
Kuhn, Loeb & Co., and Halsey, Stuart & Co. Inc.

01

•

are

pany contemplates
funded debt (Dec.

Com¬

under

new

11

stockholders

approved

plans

to

retire

21,799

shares of 6% preferred stock
through exchange for new
4% preferred,
Under tentative plans, call date will be
Oct. 1, next.

Beam

(James B.)

Distilling Co.

June 30 reported company
planning some new financing
with F. S. Yantis &
Co., Chicago as probable underwriter.

Bridgeport (Conn.)
shares

of

needed.

sequent issuance of

stock

common

to issue

when

an

and

additional 450,000
if

new

capital

is

Probable

Brown-Forman

Distillers Corp.,

July 23 stockholders will
increase in

common

vote

on

a

Louisville, Ky.

plan which calls for

stock from

(par $1), after which

300,000 shares to 600,000
100% stock dividend will be de¬

a

clared.

Directors also seek approval of an
additional
issue of 14,750 shares of 4%
preferred stock for which
the present $5 preferred can be
exchanged, on a sharefor-share basis.

Carolina, Clinchfield

June 26 it

was

reported

&

April 12 it
tion

a

like amount of

new

lower interest

that

a

refunding of the $21,-

June 11 stockholders voted
replacement of the author¬
ized but unissued 50,000 shares
($50 par) $2.25 preferred
Stock with an equal number of new
no-par $2 preferred

35,000

stated value of $50.
shares of the latter

Initially it is planned
stock

will

be

issued.

Company plans to issue an additional 175,000 shares
($1
par) common stock of which there are now
outstanding
797,600 shares.
Proceeds of the preferred and common
sales

are

to

be

used

to

repay

loan and to augment
working capital.
Central

&

a

shares

Co.

of

(jointly); Smith,
Barney & Co.-Harriman, Ripley & Co. (jointly);
Blyth
& Co., Inc.; Stone & Webster Securities
Corp. and First
Boston Corp. (jointly).




funds

for

include:

petition for approval of issuance and sale of
$290,000,000 first and refunding mortgage bonds, the
proceeds to be used to refund $304,240,000
outstanding

long-term debt. Interest rate or rates to be determined
by competitive bidding or other negotiations. Probable
bidders include Morgan
Stanley & Co.; Halsey, Stuart
& Co., Inc.; Blyth &
Co., Inc.

18

company

disposal

of

a

requested

sufficient

the

number

SEC
of

to

Corp.; Halsey, Stuart
Inc.; Shields & Co. and Lehman Brothers.

Engineering & Research Corp.
June 14

reported-company, manufacturer of air coupes,
contemplates the issuance of 300,000 shares of common
stock, with Hemphill, Noyes & Co. as underwriters.
Fairchild Engine & Airplane

May

the

shares

common

corporation entered into an agreement with'
Smith, Barney & Co. and associates which provides that
any time during period from June
25,
1946, to and including June 28, 1946, make a single pur¬
chase from the corporation at $3.75 per share of
such

number

Shields & Co.; Harriman Ripley &
Co., and Mellon Se¬
curities Corp.

Consumers, a subsidiary of the Commonwealth &
Corp., also proposes to increase the common
from 2,000,000 to 6,000,000 shares and to issue
3,623,432
Southern

new

common

shares to its parent for the
1,811,716 now

held by Commonwealth.

Foundry & Machine Co., Chicago

stockholders voted
to
create
a
new
issue
convertible preferred stock which will be offered
on a

share-for-share basis for 7% preferred

stock.

All the 7% stock which is not
redeemed on July 1 at

$105.

will be

exchanged will be

Each share of

convertible into two and

a

new

stock

half shares of

com¬

mon.

vote

modernization

of

acquisition

per

will
of

shares

of

common

preferred stock

were

stock

into

convertible

authorized

may

but

elect to sell

(a) that number

which
which

the

shares
not

were

of

con¬

prior to the redemption date. Agreement
also provides that if any shares of common stock so
purchased from corporation shall be resold by the bank¬
ers

at

on

or

than

$4.50 per share the bankers will upon
pay corporation the difference between
$4.50 and the price at which such shares are so sold.
more

all such

sales,

July 26 stockholders will vote on increasing authorized
capital stock from 100,000 shares to 200,000 shares (par
$10). The new stock will be offered for subscription
to stockholders pro rata at
$40 per share.
The U. S.
Fidelity & Guaranty Co. (parent) has announced that
it will exercise its right to subscribe to the s.ock to
which it is entitled and has agreed to purchase at $40
per

share

Muskegon

plant, provide funds for
manufacturing facilities and
working capital. Van Alstyne, Noel & Co. will be
prin¬
cipal underwriters.

committee

any

new

of

slock not subscribed for

by stock¬

holders.

Florida

June 4 it

Power

Corp.

reported that company to meet financing
expenditures in 1947 may find it necessary to issue addi¬
tional

was

common

Fox Metal

stock if market conditions warrant it.

Products, Inc., Denver, Colo.

June 19 reported company planning sale of 99,000 shares
of common stock through Frank C. Moore & Co. as
underwriter.
Issue is expected to be filed with the

price will be $3

share.

a

Commission shortly.
Offering
Proceeds for expansion.

Fresh Dry Foods Inc.,

May 29 reported

Columbia, S. C.

registration statement covering 650,000 shares of common stock (par $1).
Expected to be
filed at an early date with Newkirk & Co., New York, as
principal underwriters. Public offering price about $5
per

share.

•

General

a

Bronze

for

new

Reports

gram.

in the form

of

money

are
a

Corp.

that corporation will enter the capital

new

17

finance

its

expansion

pro¬

preferred stock issue.

General Telephone

April

to

that the financing probably will be

stockholders

Corp., New York

approved amendment to certifi¬

cate of incorporation modifying restrictions against in¬
curring debt for capital purposes without specific stock¬
holders' approval.
Stockholders also approved amend¬
ment to authorize 175,000 additional preferred shares.

bidders

include

Paine,

Jackson &

Webber,

Curtis.

creating a new issue
(par $50) of which it is

additional

directors

formed

to

consider

refinancing of $65,000,000 3y2s and 4s. Probable bidders
include: Mellon Securities
Corp., First Boston Corp.,
Dillon, Read & Co. Inc., Coffin & Burr,
Halsey, Stuart
&

corporation's

corporation

-

on

of 350,000 preferred shares
planned to offer 250,000 shares of 4*4% convertible
pre¬
ferred.
Proceeds of stock is to finance
expansion and

19

as

which, when taken at the public offering price
share at which the bankers may resell said shares,
constitute an offering of $300,000, or (b) that number

Probable

Continental Motors Corp., Detroit

July 30 stockholders will

of

the

of

stock

of shares

June 25 reported

20

exchange

shares

common

to them but not to exceed the lesser of

markets

Continental

June

of

unissued

at

competitive bidding to raise $20,000,000.
Probable bid¬
ders include Morgan
Stanley & Co.; Lehman Brothers;

•

Corp.

28

Securities and Exchange

approve

Detroit Edison Co.,
Detroit, Mich.

approved by the SEC
Central & Southwest
Corp!, the new company, would be sold at competitive
biciuing to provide funds, not otherwise
supplied, to
retire
outstanding preferred stocks of Central and
American.
Possible bidders:
Glore, Forgan & Co.;
Lehman Brothers-Lazard Freres & Co.
of

provide

bidders

mission

March

Southwest Corp.

number

Probable

$3,000,000 bank

Pursuant to plan of Central & South
West Utilities
and American Public Service Co.
sufficient

and

property ex¬
Glore, Forgan &
Co.; W. E. Hutton & Co., and Halsey, Stuart & Co., Inc.

Central Electric & Gas Co.

a

corporation is expected to sell approxi¬
debentures to pay off balance of

securities

pansion.

in

,400,000 first mortgage 4% series A bonds of 1965 is seen
possibility. Probable bidders include Kidder, Peabody & Co.; Halsey, Stuart & Co. Inc.

stock with

New York

stated that in final step in recapitaliza¬

$110,000,000

senior

of 5%

Ohio Ry.

#s a

;

filed application with the Arkansas P. s.
$2,000,000 2%% first
mortgage bonds due in 1976. Proceeds would be used for
additions and improvements to the company's
properties
in Missouri, Arkansas, Kansas and Oklahoma.
Probable
company

Fidelity & Guaranty Fire Corp., Baltimore

was

program,

mately

June

underwriters, Hincks Bro. & Co.;
Stpne & Webster Securities Corp.; Hornblower & Weeks.

p

26 reported that
present plans call for interim
borrowing from banks to effect the redemption on or
about Sept. 1 of $4,208,000 5V2% bonds and for the sub¬

Consumers Power Co., Jackson, Mich.

Brass Co.

April 23 stockholders voted

stock

Citizens Utilities Co.

June

Consolidated Edison Co. of New
York, Inc.
June 12 filed with the New York Public Service Com¬

Bangor Hydro-Electric Co.
June

/Co., Joplin, Mo.

Commission for authority to issue

verted

Columbia Gas & Electric
Corp.,

mortgage, through
competitive bidding.
Probable bidders include Harri¬
man, Ripley & Co., Inc.; Lee Higginson Corp., and
Halsey, Stuart & Co. Inc.

that

May 3

'

"•—""A

Empire District Electric

bearing bonds.

refinancing one-third of outstanding
31, 1945, $12,665,000) through sale of

equal amount of bonds

...

Smith

Barney & Co.

'

Bangor & Aroostook RR., Bangor, Me.
April 16 stockholders authorized new mortgage.

•

Co.

•

expansion

program and will replenish working capital
already used
for such purposes. Company is negotiating with a
group
of underwriters headed by Lehman Brothers and

bankers will at

Light Co.

it was stated that with divestment
by Federal
Light & Traction Co. of its four New Mexico properties
and merger of same into an intrastate
company removed
from SEC jurisdiction, it is
anticipated that the shares
of stock of the new company acquired by Cities
Service,
through ownership of Federal, will be sold through
competitive bidding.
Probable bidders: Blyth & Co.,
Inc.; First Boston Corp.; Otis & Co.; Harriman Ripley

&

loans, also

1.

competition for any new offering, viz.: Kuhn, Loeb &
Co.; Mellon Securities Corp., and Halsey, Stuart & Co.,

June 17

was

one
share
financing, for the purpose of

The

retiring company's V-Loan and current bank
will provide, in part, for company's postwar

set up to enter

groups were

Cities Services Power &

reported that one effect of the railroad
freight rate adjustment is expected to be a stimulation
of bond

banking

stock in the ratio of

common

bidders include The First Boston

is expected to be postponed until late this year. Earlier

tp finance purchase of constituent company, improve¬
ments, etc. Blyth & Co., Inc., probable underwriters.

and

Co.

was

tional shares of

Pacific RR.

Issuance by the road of $58,900,000 lower-coupon first
mortgage bonds, proceeds from the sale of which would

Three investment

1

Auto-Lite

reported that company plans to offer
in
shareholders rights to purchase 298,971
addi¬

July to

& Co.

Chicago Milwaukee St. Paul &

to split common stock
preferred isue of 300,000 (par
$10) of which 150,000 shares would be issued and sold

2 for

.

Marquetle

following consummation of the

be

Atlas

June 12 it

for each four held.

opments when and if the merger of Chesapeake & Ohio

July 16 stockholders will vote on increasing common
jrtock by 300,000 shares, the new stock to be offered

entering into

Electric

May 29 reported Estes, Snyder & Co., may underwrite
offering of common stock following merger of Century
and Continental Geophysical Service Co.

the

Artloom Corp.,

Thursday, June 27, 1946

Co., Inc., and Spencer Trask & Co.

Eastern Massachusetts Street
Ry.

July 8 stockholders will vote on
approving recapitali¬
zation plan
eliminating 30,498 $6 first preferred stock,
series A,
through issuance of $3,658,800 4^2% income

debentures.
Debentures are to be offered to
preferred
stockholders in ratio of $120
par for each preferred share.
F. S. Moseley & Co. will be
underwriters.

Goldring Merchandising Co.
May 28 reported prospective financing being discussed
with Merrill Lynch, Pierce, Fenner & Beane, as under¬
writers.
Grand Union Co.

May 23 reported directors giving careful consideration
to a splitup of common shares and issuance of additiona
new stock, but it is
likely that no action will be taken
before September. The management, it is said, is now
making an exhaustive budget study to determine wnai
additional capital will be needed to finance an

expansion

program.

Green's Ready Built Home, Inc.,

Rockford, III-

reported that early registration of 350,000
shares of common stock (par $1) was expected.
Com¬
pany, it is stated, will also sell 150,000 warrants to un¬
derwriters at 10 per warrant.
Price of stock to public
is expected to be
$3.50 per share.
Underwriters, it 1

May 15 it

was

understood, will be R. H. Johnson & Co., New Yorx,
and Shillinglaw, Bolger & Co..
Chicago.

i

Number 4502

LVoIume 163
•

THE COMMERCIAL & FINANCIAL CHRONICLE

Gulf Mobile & Ohio RR.

receive

will

28

June

bids

Metal Forming Corp.

for

purchase

of

$2,000,000

equipment trust certificates. Probable bidders include
Salomon Bros. & Hutzler, Halsey Stuart & Co. Inc.

sold for the account of certain
stockholders.

Gulf States Utilities Co.

distribution

Gulf

The

States

to

Engineers
Utilities stock

stockholders.

common

would

be

distributed

through issuance of rights.
•

Highway Safety Appliances, Inc.

Company intends to file by notification about July 12
25,000 shares of convertible preferred stock" and 25,000
shares of common stock.
Irving J. Rice & Co., St. Paul,
Minn., will be underwriters.
It is expected that the

preferred will be offered at $6

Corp., is to be underwriter.
offered at $7.50 per share.

ony

May 24 in connection with plan of dissolution of Engin¬
eers Public Service Co. part one of the plan calls for
reclassification of common stocks of two subsidiaries,
Gulf States Utilities Co. and El Paso Electric Co., and for
their

May 29 filing of letter of notification expected in near
future of 60,000 shares of common stock
(par $1) to be

per

share and the

com¬

•

Stock

First Col¬

expected to be

Michigan Gas Storage Co.

requested

the

SEC

for

authority to issue
200,000 shares ($100 par) common stock. Company noti¬
fied the SEC it intends to sell
60,000 shares of stock to
Consumers Power Co., partly in
exchange for properties
and partly for cash at
par value, and 20,000 to Panhandle
Eastern Pipe Line Co. for
$2,000,000.
The remaining
120,000 shares would be held in reserve for issuance
from

time

to

time

as

the

company

requires additional

funds.

at $3.75 per share.

mon

Hollander

July

(A.)

& Son, Inc., Newark, N. J.

stockholders

25

stock 2V2-for-l and
convertible

will

on

vote

on

splitting

common

authorizing

preferred

an issue of $1,500,000
Probable
underwriter,

stock.

Michigan-Wisconsin Pipe Line Co.
Mqy 3 it was reported that Michigan Consolidated Gas
Co., through the purchase of $17,000,000 in common
stock, would acquire full control of the Michigan-Wis¬
consin

of

Illinois Central RR.

May 3 it

was

announced that in connection with pro¬

mortgage bonds to be called for payment Nov. 1 at 107 ^
Probable bidders: Kuhn, Loeb & Co. and Halsey, Stuart
& Co. Inc.

cumulative preferred stock (par $50) into common stock
basis of two common shares for one preferred.
Com¬

on

pany states underwriting is available for this conver¬
sion program and will cover a 30-day commitment to

purchase enough additional

to redeem any pre¬
Company proposes
issuance of 200,000 shares of new preferred (par $50)
common

ferred not tendered for conversion.

dividend

common

shares to provide cash to

certificates ($11,596,680). Prob¬
able bidders include Merrill Lynch, Pierce, Fenner &
Beane; Otis & Co., and the First Boston Corp.
arrears

Indianapolis

(Ind.)

Power & Light Co.

lower-cost

securities.

Probable

clude Lehman Brothers; Blyth &
Stuart & Co. Inc.
Interstate Power Co.

underwriters

new

3,000,000

of

the

stock

part of the

a

(Del.)

to

Michigan

initial financing
to build a $71,-

bonds

include Dillon, Read & Co. Inc.; Glore, Forgan
Co.; White, Weld & Co.; Halsey, Stuart & Co. Inc.,
and Mellon Securities Corp.

May 6 it was reported company is considering refund¬
ing its $13,000,000 4V2% bonds due 1967 and the refund¬
ing or retiring of the $2,000,000 outstanding 7% preferred
stock. Refunding step would strengthen company's capi¬
tal structure

as

a

forerunner to distribution of its stock

by the American Light & Traction Co., parent, to enable
latter to meet Utility Holding Company Act require¬
Probable bidders include Otis & Co., Glore,
Forgan & Co. and Lehman Brothers (jointly); Halsey,
Stuart & Co. Inc., and Dillon, Read & Co. Inc.
ments.

National City Lines, Inc., Chicago

May 15 it was intimated that company may have financ¬
ing plans in connection with steps being taken in ac¬
quiring additional lines. Probable underwriters include
Reynolds & Co.

be necessary to enable

was reported that company may refund its
outstanding $4,300,000, 5% debentures due 1959 later this
year with new lower-cost securities.
Probable under¬

June 11 company filed with SEC a voluntary plan of
simplification and recapitalization calling for retirement

series of financing operations.

company's entire funded indebtedness through a
The plan provides, initi¬

Halsey, Stuart & Co. Inc. (bonds only); Dillon, Read &

ally,

for redemption of the

Co. Inc.

first

lien

Collateral

of

new

$2,100,000 secured bank loan, and the repay¬
bank loan with funds to be received by

(stock only).

Kansas Power & Light Co., Topeka, Kan.

clude

securities

sold

are

in¬

Halsey, Stuart & Co., Inc. (bonds only); The First

Boston Corp.; Blyth & Co., Inc.;

Kidder Peabody & Co.;

Harris Hall & Co. (Inc.).
•

dispatches from Amsterdam, stated that
would like to obtain dollars
by the sale of bonds to the American public. The reports
press

the Netherlands government

that it is exploring the matter now

with the New York
banking firm of Kuhn, Loeb & Co. Current discussions
said to involve

are

a

serial bond loan of $50,000,000 to

$75,000,000 with maturity of 20 to 25 years.

The pro¬

posed bond issue would be part of a newly conceived
drive to build up dollar balances and check the recent
unfavorable developments in Holland's trading position,

"which

gives

deficit much

indications of producing a trade balance
greater than earlier anticipated.

Kurman Electronic Corp.

Company, manufacturer of various electrical relays and
clocks, is reported planning the sale of 90,000 shares of
common stock through B. G. Cantor & Co.
An addi¬
tional 7,500 shares would be sold for account of N. S.
Kurman, President. Price $3 per share.
•

Lakeside Laboratories,

Inc., Milwaukee

June 26 reported stockholders have been asked to ap¬
prove a plan of recapitalization, which includes the issu¬
ance

of

16,000 shares

There will be

outstanding, 255,000 shares of $1 par common stock. This
Will represent the first time the company, manufacturer
of pharmaceuticals, has made any public offering.
The
issue will be handled by Loewi & Co., Milwaukee.
Macfadden

Publications,

Inc.,

was




Inc.;

Kuhn,

cash adjust¬

shares and

Ohio

Loeb

&

Probable

Corp.; Blyth & Co,,
Ripley & Co.

Co.;

Harriman

Public Service Co.

May 28 it

was reported that early sale
by Cities Service
Light Co. of its common stock holdings of Ohio
Public Service Co. was probable
following the virtual
completion of the refunding program of this subsidiary.

Power &

This

is

of the few remaining
steps prior to com¬
plete divorcement of the Cities Service Co. from the
utility field in compliance with the Public Utility Hold¬
ing Company Act.
one

Oklahoma Gas & Electric Co., Oklahoma
City
Company contemplates at same time Standard Gas &
Electric Co. sells its holding of common stock
(in ac¬
cordance with SEC regulations) to sell
approximately
140,000 shares of new common stock, proceeds of which
will be used to reimburse
treasury and retire bank loan
used in redeeming the 7%
preferred stock.

Probable

bidders

will

include

Merrill

Lynch, Pierce, Fenner &
Beane; The First Boston Corp., and White, Weld & Co.
Pacific

Lighting Corp.

June 7 directors authorized the
management to prepare

plans for refunding the corporation's 200,000 shares (nopar) cumulative $5 dividend preferred. Blyth & Co. will
probably be underwriters.

Pennsylvania Edison Co., Altoona, Pa.
March 28 company applied to the SEC for
permission to
issue (a) $23,500,000 first mortgage bonds series of

19711,
(b) 101,000 shares of series C cumulative preferred
stock, with a dividend rate not to exceed 4%.
Both
and

issues

are

to be sold

through competitive bidding. Prob¬
Mellon Securities Corp., Smithy
Barney & Co.,,Kidder, Peabody & Co., and Merrill Lynch*
Pierce, Fenner & Beane.
able

bidders

include

Pennsylvania Gas & Electric Corp., York, Pa.

•

Pettibone Mulliken Corp., Chicago
19

stockholders approved an increase in the au¬
capital stock to 250,000 shares from the present
108,425, and authorized the issuance of rights to stock¬

presently outstanding 5%

bonds

by using

the proceeds

holders to purchase some

$3,000,000

provide funds for expansion, new equip¬
refunding of a short-term bank loan of

$950,000.

of this

corporation as a result of the refunding of the bonds
wholly-owned subsidiaries—National Utilities Co.

St. Louis

Service

Michigan, and Industrial Gas Corp. of Ohio. The new
$980,000 first mortgage 3% bonds of the Michigan sub¬
sidiary would be sold privately at par and accrued inter¬
through

an

investment group consisting

of Battles

Co., Inc., Philadelphia; G. H. Walker & Co. of Provi¬
dence, R. I., and Smith, Landeryou & Co., Omaha, Neb.
Under the plan, National Gas & Electric also would
dispose of its holdings in Northern Indiana Fuel &
Light Co.
New

England Gas & Electric Association, Cam¬
bridge, Mass.

June 24 the SEC

approved the amended plan of reorgani¬

zation

providing for sale at competitive bidding of (a)
$22,500,000 20-year sinking fund collateral trust bonds,
plus (b) sufficient shares of new common stock out of the
original issue of 2,300,000 shares to supply $11,500,000.
Proceeds will be used to retire at par and interest out¬
standing debentures. Bidders may include Halsey, Stuart
& Co., Inc. (for bonds only), Bear, Stearns & Co. (for
stock only), First Boston Corp., White, Weld & Co.Kidder, Peabody & Co. (Joint).

19

the

(Mo.)

Public Service Co.

company

petitioned

the

Missouri Public

Commission to

simplify its financial structure,
including reduction in interest and sinking fund changes.
Company proposes to retire current funded debt ($11,640,683) and to issue up to $10,000,000 new bonds, but
limited

originally to $6,000,000.
Probable bidders in¬
White, Weld & Co.; Blyth & Co., Inc., and First
Corp.

clude

Boston

Southern Co., New York
The

•

to

ment and for the

of

est

15,000 of the newly authorized

shares at not less than $20 a share. Rights are expected
to be offered soon at approximately $25 a share. Share¬
holders also authorized the company to borrow up to

April

Southern

Co. (to be successor to Commonwealth
Corp.) proposes to sell for cash (when
Commonwealth's recapitalization plan becomes effec¬
&

Southern

sufficient

tive)
be

invested

common

in

stock to realize $10,000,000, to
Co.'s subsidiaries and new

Southern

construction.

Southern

Electric System,

Inc.

substitute plan for retirement ot
preferred stocks of Electric Power & Light Corp., filed
May

10 pursuant to

with

SEC

common

stockholders

of

Electric

Power

&

Light Corp., would be given rights to subscribe to United
Gas

Corp. common stock and stock of the new holding
Southern Electric System, Inc. The latter com¬

company

New York Dock Co.,

N. Y.

pany

May 28 reported negotiations will be resumed probably
in June with" view for refunding of $10,000,000 first
mortgage 4s, due 1951.
years.

New issue will probably run 25

would be formed to hold the stocks of Arkansas
Light Co., Louisiana Power & Light Co., Mis¬

Power &

sissippi Power & Light Co., and New Orleans Public
Service Inc.

Probable underwriters, Hayden, Stone & Co., and

Southwest Merchandise

Halsey, Stuart & Co., Inc.

Market, Wichita,

Kan»

reported company is planning issuance of 99,000
shares of common stock (par $1) to be offered at $3 per

June 3

Northern Indiana Public Service Co.

April 17 reported that company has under consideration
the refunding of its $45,000,000 series C 3V8S with issue
of about same size carrying lower coupon rate. Probable
bidders, Halsey, Stuart & Co. Inc., and
&

Harriman, Ripley

Co.

Northern Pacific Ry., St.

New York

reported that company had under con¬
sideration plans to refund the outstanding 6% deben¬
tures and the $1.50 participating preference stock.
20 it

a

new

the call price of $110 a share on the
$5 stock.
bidders include The First Boston

of its

($25 par) $1.16 dividend cumula¬

tive preferred stock, a total of $400,000.

May

the

trust

&

Kingdom of the Netherlands

June 25

a

ment

May 31 reported company probably will replace out¬
standing bonds and preferred stock with new lower cost
if

offering price of the

thorized

National Gas & Electric Corp., New York

of the

Probable bidders include the First Boston Corp.;

bidders

stock, together with

new

ment between the

June

National Container Corp.

plan.

Probable

exchange of the

May 23 it

the company to carry out the provisions of the amended

securities.

\he SEC for authority to issue
preferred stock, the price to be
set at competitive
bidding.
Shares will be used to re¬
fund a like number of $5
preferred shares now outstand¬
ing.
Present preferred holders are to be offered an
new

May 7 corporation applied to the SEC for permission to
sell all of the common stock of the Petersburg &
Hope¬
well Gas Co. (a subsidiary) consisting of 55,000 shares
(par $10) to Scott, Horner & Mason, Inc., of Lynchburg,
Va., for $600,000, plus closing adjustments.

com¬

first mortgage bonds and such number of

common shares as may

Northern States Power Co. of Minnesota

&

through competitive bidding $20,-

pany proposes to sell

Sale

company, which proposes
pipe line to bring natural gas from Texas to
States.
Michigan-Wisconsin's proposal also
contemplates issuance of $6,000,000 in 2% 5-year serial
notes and of $34,000,000 in 3J/4% 20-year first
mortgage
bonds to complete the "initial financing." The
plan has
yet to be presented to the SEC. Probable bidders of the

in¬

Co., Inc., and Halsey,

May 21 pursuant to amended plan filed with SEC
000,000

be

•

June 25 company asked

writers Van Alstyne, Noel & Co.

April 24 it was reported that company probably will
replace its $32,000,000 first 3Y4S due May 1, 1970, with
new

Co.

would

Milwaukee Gas Light Co.

company filed plan with SEC to simplify capi¬
tal structure.
Plan contemplates the conversion of 5%

pay

Line

new

Midwest

Decatur, III.

April 11

and such additional

the

000,000

posed bond refunding plan company proposes to sell
$35,000,000 first and refunding mortgage bonds Series B.
Proceeds would be used to retire outstanding refunding

Illinois Power Co.,

Pipe

Consolidated

Merrill Lynch, Pierce, Fenner & Beane.

of collateral trust bonds.
Prospective bidders, Morgan
Stanley & Co., Halsey, Stuart & Co. Inc., and Kidder,
Peabody & Co.

275,000 shares of

June 14 company, a
recently organized corporation pro¬
viding summer storage of natural gas developed in

Michigan,

3529

Paul, Minn.

reported April 10 that company has under con¬
sideration the refunding, of $55,000,000 collateral trust
4%% bonds due 1975 and the issuance of a new series.
It

was

share, with Clayton Securities Co.; Sills, Minton
and Estes,

& Co.,

Snyder & Co., as underwriters.

Stevens

(J. P.)

& Co., New York

May 29 it is rumored that company expects to do some
new financing
in the immediate future following the
merger

holds
&

Co.

a

of several Southern mills in which the company
controlling interest. Reported Morgan Stanley

probable underwriter.
(Continued on page 3530)

3530

THE COMMERCIAL & FINANCIAL CHRONICLE
:

(Continued from page 3529)
Sun

latter has completed negotiations to sell through Kansas

underwriters

Chemical Co.

residents

to

Kansas

of

preferred stock (par $100) at $103

June

18 reported tnat company plans early registration
$4,275,000 20-year sinking fund debentures and $1,200,000 preferred stock, with Shields & Co. as under¬

only $500,000

per

Waitt & Bond, Inc.,

5%

June

share.

lion

of

Union

Sunray

Drug

Co.

future

company

of

Texas

Inc.

amount

negotiating the placement of
debentures with insurance companies

United

through Dillon, Read & Co.

approving an increase
from 1,700,000 to 4,000,a two-for-one basis, and

on

in the authorized common stock

000 sharess, split the common on

tlfte authorized

convertible preferred

500,000 to the 200,000 shares

now

stock from

outstanding.

A and B

Directors

also would be empowered to sell common stock for
cash*,
services or property, at their discretion.
Probable un¬

after

derwriter, Blair & Co.

&

•

July 1.

financing to obtain funds to
for the acquisition of Gosset

United States
June

213,287 shares of

Probable

(Ohio)

Edison Co.

held by Cities Service Power &

now

Union Electric Co. of

In

Light Co.

Under provisions of merger

Union

and

connection

will

mon

fund

its

have not

Co.

common

lost any of their
appeal

the

company and its
miscued on setting the

rate

any

new

up before it for the ensuing fort¬
night the investment underwrit¬
ing fraternity is bending every

effort to clear away the remnants
of large-scale offerings that have
been

keeping it busy

the

syndicate

to

the-counter"

at

prices

as

high

34 bid and 35 asked.

as

recent

over

reports embraced in
prospectus probably contrib¬

the

in

the

the business

are

minimize the
on

the

admit

end

of

not inclined to

of the task,

scope

contrary

that

Evidently

dealer

it

is

real

a

of

some

frank

are

the

offerings

encountered

resistance

from

job.

uted to the
in

demand, showing that

the first

quarter this year the

company netted $713,961
or
al¬
most as much as the
$748,974 re¬
ported for the entire year 1945.

recent

Moving Too Fast

Things backfired

buy¬

perhaps reflecting in some
measure
reports current about
the

Co.

on

country of conditions ap¬
proaching a buyers' strike in
other directions.
At any rate those who have the

job of carrying new securities to
the public contend there has been
some

"backing up," quite

a

bit of

it in fact.
As

one

of

their number puts

product has been quite fully
priced in many instances,
and
the

seasoned

market

a

bit

the

on

of

the

stock for the account

Standard

Gas

&

Electric

Co.

syndicates
bid
for
the
stock, with one syndicate making
a

high tender

against

a

of

$28.33 a share
competitor's offer of

the

$24,031

share.

reactionary
side
"you
really have vto sell a customer
these days."
They don't just buy,
he added.

plans for

The

apparently

reoffering later in the

week.
came

Gas

the dawn.

announced

of the bids because

not

were

that

it

Wisconsin

Co.'s

financing

000,000 of
bonds
and

new

was
reported
Electric Power

involving
first

260,000

preferred stock, sold
ket bid" on Monday,

Stand¬

"the prices

satisfactory"

and

added "we hope to try
again in
the
future
whenever

ing

mortgage
a

of

"bas¬

was prov¬

really fast mover.
Brisk
demand was said to be absorb¬
ing both the bonds and the new
preferred in a manner distinctly
a

cheering to the Street.




ket conditions
improve."

Electric

its

first

not

call

consider

it

for the

had

fixed

3%

is

of

4%

a

cou¬

retaining

but is

coupon,

of

bonds for

calls for bids,

new

company

matter

the

proposal

any

104

In the

the

for bids

specified that it would

company

the

leaving the

price entirely

to

up

bankers seeking the bonds.
No

Power

Co.

offering of $16,000,000 of
first mortgage, 30-year
bonds,

failed to attract

tenders

were

a

single bid when

asked

competitive

Gas

&

bidding

Wis.

Electric

some

time

of common stock.

Wisconsin Co.; The First
Ripley & Co.

Harriman
(N. Y.)

New York

Electric Light & Power Co.

Public

Service Commission author¬
company to issue $9,000,000 30-year debs., int. rate

ized

to

exceed

2%%, to be guaranteed by parent.
Issue
through competitive bidding. Possible bidden
Halsey, Stuart & Co., Inc.; Morgan Stanley &
Co.; Lehman Bros., Harriman Ripley & Co. and

a

fortnight

ago, has decided to make another

try.
The company is
prepared to readvertise for bids for the
issue to

Union

Securities

Corp. (Joint); Blyth & Co., Inc.; Shields &
White, Weld & Co. (Joint); W. C. Langley &
Co.; Merrill, Lynch, Pierce, Fenner & Beane and
Kidder,
Peabody & Co. (jointly).
Co.

Halsey.

and

will be

busy

a

writers, American Telephone &
Telegraph Co., has registered for
$125,000,000 of new 40-year de¬
bentures

to

provide

part

of

the

funds needed for its vast
pent-up

backlog of expansion work.
Bids

July

due

are

16 and at

to

be

least

opened

two

A week before

Power

on

which

huge

preferred

The
sold

bonds and $9,500,000
sinking fund debentures.

Pennsylvania Elec¬
$23,500,000 of 30mortgage bonds and

101,000 shares of cumulative

pre¬

ferred

stock, which under the
SEC's speedier clearance
program

next

the

cumu¬

stock

offered

was

at

share

preferred

for

the

and

stock

common

is

reach

day

or

market

within

made

to

improve

balance wlil be added to the
from

stock

the
will

sale

Net
the

of

revert

selling stockholders

the

to

pro¬
com¬

certain

the

of

com¬

com¬

pany.

outstanding

the

company

the

capitalization

completion
will consist of

upon

financing
shares, $10

50,000

value, of
preferred

par

convertible cumulative
stock and 195,000 shares of
mon stock.

com¬

The

Financial

Chronicle)

OMAHA, NEB.—Fred
R.

Crites,
are

and

now

J.

Beck,

Clarence

with

L.

Burns, Pot¬

Co., 202 South Seventeenth

Street.

At

Bond Club

Membership
Largest in History
CLEVELAND,
of

OHIO

the

(Special

to

The

BOSTON,
Storer

&

Co.,

Financial

Chronicle)

MASS.

Inc.,

35

—

Gregg,

Congress

Street, have added Alfred G. Irish
and Walter M. Bush to their staff.

which

was

country club.
Offecers
Eakin

of

are:

the

club

Walter

besides

Carleton

ctf
Fahey, Clark & Co., Vice-Presi¬
dent; Wilson, Secretary, and Hay,
Treasurer.
Entertainment was
supplied by a quartet, the Forest
City Four. William Clark of Mer¬

Jas, Buck Heads AIB
Cleveland Chapter
CLEVELAND, OHIO—James L.
Buck is the

new

President of the

Cleveland Chapter, American In¬
stitute

of

Banking.

Buck, a branch manager, has
been with Cleveland Trust Co. for
25 years.

He is

a

Other

Plan

Ford

Trust

officers elected

ernors are:

for

past-president of

the bank's Cleveland

Club.

by Gov¬

Ralph Perry, of Morris

Bank, First Vice-President;
Steele of Central National

Second

Vice

-

President;

Bond

Weeks, stated that 27

bers

have

by

new fnem-

the club

was

formed

in

In

other

business,

tournament,

ernors

two

elected.

following
new

a

Gov¬

They are
Blyth & Co. and
Rudford
K.
Wilson
of
Curtiss,
House & Co. They succeed Eakin
Orrin

Club.

Field Rejoins First Boston
CLEVELAND, OHIO—David A.
has rejoined the First Bos¬

Field
ton

Corporation,
Union
Com¬
Building. He has been m
armed forces. Prior thereto he

merce

the
was

in

charge of firm's Cleveland

office.

Fewel Co. Adds to Staff
(Special

1921.

golf

Country

been

admitted, boost¬
ing membership to 204, the high¬
since

was
appointed
Secretary.
The
meeting was held at Hawthorne

Mem¬
Club
of

the
club's President, Paul J. Eakin, at
the annual spring party at Sleepy
Hollow Country Club, Cleveland.
Eakin, who is with Ho^nblower
&

Bank, Treasurer, and Miss Jean
Winsper of Central National Bank,

—

is the largest in

25-year history.
This
was
announced

est

Gregg, Storer Co.

members at¬

outing

limited to members
only this year
because
of
restrictions
at
the

Bank,

its

to

the

Clarence Rankin of National City

Cleveland today

(Special

Approximately 150
tended

30 years and has been in AIB

The

bership

Three With Burns, Potter

Hay of Merrill, Turben

committee.

plant's operational efficiency and
increase tire production.
The

the

two.

John

Co.

rill, Turben, headed the publicity

to

mon

&

the

penditures

ceeds

and

being

sold

first

year

to

5%

company and of the
net proceeds
approximately $100,000 will be used to finance ex¬

of

Co.

of

priced at $8 per share.

$64,000,000 of new issues,
including $45,000,000 of Series
C and $10,000,000 Series D first

Yesterday

offered

per

July 9, Gati-

on

tric

21

lative convertible preferred
stock,
$10 par value, and 95,000 shares
of $1 par value common stock of
Denman Tire & Rubber Co.
The

of

of

June

public 50,000 shares

Co. will open bids

neau

Co., Inc.,
underwriting group

an
on

&

pany's working capital.

known to be in the

are

headed

Waddell

$10

for under¬

summer

Herrick,

was

Summer Dullness

Confirming indications that this

ter &

whose
new

by

14

Milwaukee,

Standard

include The

Slocks Publicly Offered

On

John

Makes Another Try

California

Yonkers
June

at

interest.

Weaver

$50,-

shares
on

new

rejection

mar¬

Meanwhile

headed

bidders

Corp.;

S.

sell

that

holdings of 1,099,970 shares

Denman Tire & Rabfeer

could

Then
ard

U.

fi¬

new

include

mortgage

Two

successful group went ahead with

it

the

with

offering of 312,000
shares of California Oregon Power
common

group

running for this choice morsel.

this week's

competitive

ers,

investment

an

opened next Monday. The

groups

greater

potential

Boston

the

reported

issue fraternity will be
watching
this one with more than cursory

report

Earnings

People

to

time

was

of

Railway

which

closing of the subscriptions the
issue was being quoted "over-

weeks.

but

there

reorganization

Public Service
Co.,

was

expected to

not

offering

on its
offering of
125,000 shares of the new stock
priced at $18 a share, and be¬

fore

to

less than

opened books

heavy vol¬
business still piling

it

Probable

was

pon.

At

the

bankers

price.

continuing

with

sold

be

publicly on Tuesday
certainly
caught
themselves
a
"quickie." Either the liquor
stocks

or

Co.

Inc.

lower coupon issue.
Possible bidders include
Stuart & Co., Inc., and Kuhn, Loeb & Co.

stock offered

Reporter's

of

Wisconsin

May 20

reported that company may possibly re¬
$47,000,000 first mortgage 3Y4S of 1971 with a

People who bought into GlenDistilleries

be

Wabash

May 1 it

plan of Union Gas System,
Gas System, Inc. (Kan.)

Our

ume

to approve the issuance of
4V2% preferred stock in share-for-

Realty-Sheraton,

of

Corp •
Courts

to be sold

100% Appreciation

a

(N. J.)

Lehman Brothers.

(Kansas)

more

States

shares

stock

nancing, common being sold by stockholders.
Expec ed
preferred will be offered at $20 and common
at $10
per share.

voted

new

an early registraJon of
75,000 shares
preferred stock and 50,000

convertible

expected
with
First
Colony
Rauscher, Pierce & Co.; B. V. Christie &
Co.;
& Co., as underwriters.
Preferred represents

se¬

Realty & Improvement Co. and merger whh Sheraton
Corp., 42,390 shares of the reorganized company's com¬

contemplates refunding its

System, Inc.

(Delaware)

stockholders

United

outstanding $90,000,000 3%s of 1971 with lower cost
obligations. Possible bidders would include Dillon, Read
& Co. Inc., and Halsey, Stuart & Co., Inc.
Gas

4

Lines Co.

Stores, Inc.

reported

in June its

Missouri

It is rumored that company

With

their

24

common

exchange for outstanding 7% preferred stock. Any
unexchanged 7% stock will be called for redemption at
$10.50 a share and accrued dividends.

May 28 it was reported that a refunding program is
contemplated at an early date for this company to be
followed later by sale at competitive bidding of the com¬

Inc.

of

iShare

underwriter Blair & Co.

Union

exchange will be sold

Power stockholders who have not tendered

White Auto

June

of

arrangements

stock

•

The Rail¬

Proceeds will be distributed to the Light

Inc., is expected shortly in financial circles.

mon

Light & Power.

ways common stock not taken in

Mills by Textron Southern, Inc., a subsidiary of Textron

Toledo

of

Southern, Inc.

announcement

complete

share

common

bidders include
Blyth & Co., Inc.; Bear, Stearns & Co.;
Halsey, Stuart
& Co., Inc.; Merrill
Lynch, Pierce, Fenner &
BeaneShields & Co., and Glore, Forgan & Co.
'

curities in exchange.

Textron

June 26

Light & Railways Co.

advising stockholders of its former parent, United
Light & Power Co., that July 1 is the final date for ex¬
changing their holdings under terms of the dissolution
plan which went into effect in March, 1945. The plan
provides that Railways common stock be issued in ex¬
change on the basis of five shares for each Light &
Power preferred share, and one-twentieth share for each

Textron, Inc.

of

first mortgage 4% bonds due Jan.
1, 1974, and held
bv
RFC.
Interest rate to be specified in
bids.
The direc¬
tors have rejected the conditions
attached by the
ICC
but the company on May 27 filed a
petition for recon¬
sideration and oral argument.
Probable

Is

August 1 Stockholders will vote

reduce

Pacific RR.

April 11 ICC conditionally authorized
company to issup
$10,000,000 first mortgage bonds, series
B, due Jan l
1981, proceeds to be used to refund a like

Co.

$80,000,000 2%%

at

Maryland Ry.

Western

June 25 company reported

•

considers

May 22 reported company working on plans to
refinance
$44,901,000 first mortgage 4s.
Probable bidders
inclurip
Kuhn, Loeb & Co., and Halsey, Stuart & Co.

& Co. Inc.

•

under

Announcement expected

program.

date.

Western

May 9 it was reported officials are considering the ques¬
tion of meeting the $100,000,000 first mortgage railroad
and land grant 4's due July 1, 1947. However it is felt
maturity date is too far away to determine now whether
issue will be paid off in cash or will be refunded. If
company decides to refund through new issue probable
bidders will be Kuhn, Loeb & Co., and Halsey, Stuart

plans registration in imme¬
$2,000,000 debentures. Proceeds to be
used to pay $1,000,000 bank loan and for working capital.
Probable underwriters, Eastman, Dillon & Co.
diate

refinancing

a

Pacific RR.

Newark, N. J.

12 it was reported company has

early

writers.

May 23 reported

Thursday, June 27,1945

■

were

Koeser of

to

The

Financial

Chronicle)

CALIF.—Fewel
& Co., 453 South Spring Street,
members of the Los Angeles Stock
Exchange, have added Robert S.
Bryson and Richard C. Dinkins to
LOS ANGELES,

their staff.

r

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4502

Volume 163

with Robert I. Winters & Co., Inc.,
548

South

Spring Street. He
formerly with Pledger & Co.

was

3531

noticed.

Strong 0PA Bill

These,

(Special

(Special

(Special

The Financial Chronicle)

to

to The

—

P.

(Special

obscot Building.
The

to

Chronicle)

Chronicle)

Financial

BAY, WIS.—Haro'd E.
has rejoined Gillespie &

Hanson

The

David A. Noyes

&

Co.

&

to The

Chronicle)

Financial

Blair

S.

to

Financial

The

Chronicle)

Financial

INDIANAPOLIS, IND.—John H.
Hulst is with Riser, Cohn &

to

The

in

Financial

Chronicle)

Slayiton & Co., Circle Towers.
to The Financial

(Special

Chronicle)

MO.—Nathan
connected
Co., 1000 Baltimore

CITY,

CHICAGO,

ILL.

(Special

to

(Special

The

Financial

Chronicle)

MO.

CITY,

—

(Special

to The

Financial

(Special

is

associated with

The

Financial

South

First

Cleveland

Chronicle)

Richard

with

Spring Street.
to The Financial

Chronicle)

Blyth & Co., Inc., is now as¬
with Maxwell, Marshall

sociated
&

Corporation,

National City Bank Building.

Co., 647 South

(Special

to

The

—

Tames

Chronicle)

Financial

man

Richard M.

GarrOtt-Bromfield

&

Co.,

Bowles

Mr.

inflation".

against
would

contemplated
bill

if the
extension

on

to The Financial Chronicle)
ANGELES, CALIF.—
H. Cassell and Lynn Harde¬

with Slayton & Co., Inc.

are

(Special

650

LOS

Joseph

Seventeenth Street.

to

The

Financial

ANGELES,
Saittler

is

but he
the sug¬

However, according to
Associated Press Washington ad¬
vices, he reiterated that "if the
bill which finally comes from the
Congress is clearly inadequate to

(Special

to

The

Financial

hope

is

firm

a

said

He

ceilings June 3C
dairy products, poultry
is "so obviously disas¬

eggs

OMAHA, NEB.—David A. Ken¬
is with Central Republic Com¬

Chronicle)

CALIF. —
affiliated

now

all

Elimination

Restrictions

3.

and

facturers

inexpensive

produce

garments.
which

Amendments

4.

controls.

set

up

removal of price
cited cigarettes as

for

procedures

He

example, and said that coffee,
after removal of ceilings, might

an

go

much

as

un

cents

15

as

a

pound.

the

stabilizing

of

.responsibility

the

OPA

tween

would

which

Amendments

5.

divide

for
living be¬
the Department
of

cost

and

Agriculture. "Neither the Sec¬

retary

Agriculture

of

the

nor

Price Administrator would be able
to

American people
of half-authority
half-responsibility," Bowles
the

protect
this

with
and

kind

said.

DIVIDEND NOTICE

fear, he declared, is that
dramatic but equally dan¬

"less

textile

on

clothing controls and elimination
of the
requirement that manu¬

elim¬

will

committee

wholesaler

of

retailer cost absorption.

the

confident

is

said

board."

the

across

it.

His

Chronicle)

he

that

trous"

inate
Financial

which

remove

meat,

conference

to The

amendment

an

Hibernia

(Special

unequivocal

and

veto" by President Truman. From
the Associated
Press we quote:

and

Building.

forces

facing, the only remaining

are

on

Chronicle)

the inflationary

with

deal

for

he

which

"begin to explode in an
unending stream of higher prices

resign

revised

finally passed,

were

MANUFACTURING
COMPANY
and
West
Streets

AMERICAN

Noble

gerous" amendments may go un-

4907 Underwood Avenue.

York
of
the

Brooklyn, New
Board
of
Directors

The

American

Manufacturing Company has declared a divi¬
dend of ?5c per share on the Common Stock,

to The

Financial

Chronicle)

&

Gardner, 400 Locust

payable July

DIVIDEND NOTICE

the

at

fer

JOHN MORRELL & CO.
NO.

business

will

dividend

of

Fifty

share
on
the
capital stock
of John Morrell & Co.,

Cents ($0.50) per

Result of Treasury

27

June

dated

teen

June

able

at

October

1946,

1,

Secretary.

NOTICE

Common Stock Dividend No. 122
Boston. Mass., June

25,1946

(includes $33,397,000 entered on
a
fixed price basis of 99.905 and
accepted in full).
Average price, 99.905 -f; equiv¬
alent rate of
discount approxi¬
annum.

competitive

High 99.907; equivalent

a

regular meeting of

second
to

of The First Boston

of

2%

or

18,

holders of record
business

on

the

Company

business

28,

June

on

will

Books

fer

not
J.

E.

1946 to stock¬
as

value,

par

for

1946, equal
will be paid

year

shareholders

June 25, 1946, a dividend of £2.50
per
share was declared on the
capital stock of the Corporation

payable July

its

the Board

1946,

12,

the

of

the Common Capital Stock of this
by check op July 15, 1946, to
of record at the close of

upon

Corporation held

1946.

be

The Trans¬

closed.
Treasurer

BECKETT,

California

San Francisco,

of the close of

July 1, 19-16.
Edward J.

Costf-i

lo

Treasurer

rate of

Universal Pictures

0.358%

approximately

quarter

by

declared
June

bn

Directors

of

the Board of Directors

dividend

cash

A

At

applied for $1,854,714,000.
Total
accepted,
$1,305,799,000

discount

record

1946.

6,

Pacific Gas and Electric Co.
DIVIDEND

Total

per

pay¬

to mature

and

of accepted

DUNNING,

F.

of

stockholders

to

business September

of

close

fif¬

228 of

earnings,

past

of

Company.

George A. Morrell, Vice Pres. & Treas.
Ottumwa, Iowa.

Sept. 26, which were offered on
21, were opened at the Fed¬
eral Reserve Banks on June 24.

Range

Treasurer.

share was declared by the
out

will be paid July 31,
1946, to stockholders of record July
13, 1946, as shown on the books of
the

Record
Trans¬

1946.

dividend No.

a

per

Directors

of

the

1946,

25,

(15c)

cents

Board

June

mately 0.375%

20,

THE YALE & TOWNE MFG. CO.

_

Offering

June

remain open.
B. BROWN,

68
On

A

Bill

to Stockholders of

1946

1,
of

close

books

ROBERT

bids:

associated with

Moore has become

Spring Street.

(Special

LOS

DENVER, COLO.

fight

ANGELES,

ANGELES, CALIF.—
Thomas R. Peirsol, Jr., formerly

I. Kern has been added to the staff
of

the

in

to

Chronicle)

LOS

—

"seeks

There have been intimations that

would

Reinholdt

to

(Special

CLEVELAND, OHIO

Chronicle)

York City.

be

nut Street.

'

Financial

Secretary of the Treasury
(Special to The Financial Chronicle)
announced on June 24 that the
LOS
ANGELES, CALIF.—
tenders for $1,300,000,000 or there¬
Edward A. McNally has become
about of 91-day Treasury bills to
connected with Lester & Co., 621

Chronicle)

to The Financial

The

The

Westheimer & Company, 322 Wal¬

(Special

Committee

follows:

as

would

and

DIVIDEND

OHIO —Thomas

now

to

manufacturers

"none—literally none" of the
changes now being considered by

He

that

we

Street.
(Special

extend

to

Act.

cloth¬

proposals

Price-raising

2.

is

Dixie Terminal Building.

E. Tucker

&

Co., Inc., 55 Liberty Street, New

,

Financial

Fenner

BEACH, FLA.—Thomas
B. Ray is with Herrick, Waddell &

CALIF.—Russ
I. Hendrickson has been added to
(Special to The Financial Chronicle)
the staff of Oscar F. Kraft & Co..
CINCINNATI, OHIO —William 530 West Sixth Street.
He was
M, Mitchell is With Bache & Co.,
formerly with G. Brashears & Co.

The

Pierce,

MIAMI

(Special

Lynch
LOS

to

Committee

Control

Price

Chronicle)

Building.

(Special

Lynch,

1.

said

the

MO.—Clarence
ST. LOUIS, MO. — Harold J.
now connected
Wahler, White & Co., Dwight Courtney has joined the staff of

208 South La Salle Street. He was

CINCINNATI,

Chronicle)

Beane, Alfred I. du Pont Building.

KANSAS CITY,
\. Toenniges, Jr.

with

I

Financial

ny

staff of Shearson, Hammill & Co.,

previously with Merrill
Pierce, Fenner & Beane.

The

Lee L.

become affiliated
with McDonald & Co., 417 Finance

added to the

to

MIAMI, BEACH, FLA.—William
R. Lilliott has joined the staff of

has

Lockridge

Robert T.

—

been

has

Conference

House Senate

a

declined to comment

pany,

McDevitt

before

now

ORLEANS, LA.—George
^orsey is with Kingsbury & Alvis,

KANSAS

Chronicle)

Financial

The

Securities

NEW

Building.
to

previously

was

Southeastern

become

has

Avenue.

Chicago.

(Special

421

He classified these

conference, Ches¬

news

a

Bowles, Director of the Office
of
Economic
Stabilization,
on
June 20 expressed his views of the

sheep's

ing."

ter

gestion.

INDIANAPOLIS, IND.—Walter
L.
Catterlin
is
affiliated
with

with Bache &

Lambert E.
Reilly has become affliated with
Leasbn & Co., Inc., 39 South La
Salle Street. He was formerly with
First
Securities
Company
of
—

with

Oo„

Chronicle)

Ver

KANSAS

The

to

He

A.

—

now

&

Corp.
(Special

Scarritt
(Special

is

Claybaugh

with

Navy.

CHICAGO, ILL.

FLA.

Rodewald

F.

Lincoln Road.

staff of
Circle Tower.

lease at

streng¬
then the hand of the Government

Chronicle)

Financial

BEACH,

Frederick

F. S. Moseley & Co.,

(Special

CHICAGO, ILL. — Edward E.
Waters is now with Carter H.
Co'rbrcy
&
Co:, 135' South La
Salle Street, after serving in the

to The

statement prepared for re¬

a

bills

Chronicle)

Financial

In

the
(Special

Merrill

U.

Spring

South

KY— Edwin S.
joined the staff of Stein
Boyce, Starks Building

X. Adams has joined the

Financial^ Chronicle)

The

to

Dean

Arcade.

Shumaker, Inc., Circle Tower.

(Special

The

MIAMI

Mr. Brown was pre¬

viously with

Bros.

INDIANAPOLIS, IND.—Francis

CHICAGO,
ILL. — Charles
iBrdwn is now associated with
Norris & Kenly, 209 South, La
Salle Street.

to

Klein has

serving in the armed forces.

Chronicle)

Financial

634

Co.,

with

now

Wouters, Northern Building, after

(Special
to

is

LOUISVILLE,

BROOKLINE, MASS. — Philip
Irartas has joined the staff of Alex
Bramsley, 71 Kilsyth Road.

(Special

&

Street.

GREEN
Financial

to The

Chronicle)

Breen is with Marxer & Co., Pen¬

(Special

(Special

Financial

ANGELES, CALIF.—John

Witter

Chronicle)

Financial

MICH.—William

DETROIT,

Richard D.
| peters has been added to the staff
of W.
C. Langley
&
Co., 115
Broadway, New York City.
MASS.

The

Ainsworth

L.

BOSTON,

to

"are

added,

action bombs," and the

"delayed

"amendments
LOS

he

boo&y trap amendments," the

the

Company, Inc.

per annum.

equivalent rate of
approximately
0.37*3%

Low, 99.905;
SITUATION WANTED

discount
per

SEGAL LOCK & HARDWARE

annum.

COMPANY, Inc.

(67% of the amount bid for at
An

experienced trader who is now a partner in a

Wall Street firm,

desires to make a change.

He

ample capital of his own and a

June 27 in
the amount of $1,313,401,000.
ilar

sound knowl¬

edge of the brokerage business in

the low price was accepted.)
There was a maturity of a sim¬
issue

on

general, built

has

can

use

SITUATIONS WANTED

a

man

like that in your organization,

reply. Box C 646, Commercial & Financial Chron¬
icle, 25 Park Place, New

Available

Municipal Man
Twenty-two years with mu¬

Street

DIVIDEND
The Board of Directors has

CORP.

a

$2.50 Cumulative
Preferred Stock

close

of

share

stock of

Company, payable July 31, 1946
stockholders of record at the close

to

of business

1946.
LOUIS SEGAL

business June 29.

20,

the outstanding common

on

July 15, 1946.

of Directors has

LIQUIDATION NOTICE
The

Meriden

National

Bank,

located

Dated

J946

May

13,

1946.
FRANK O'BRION,

Cashier.

district and fourteen

with municipal de¬
partment of financial publi¬
cation. Now retired, but de¬
sire to continue in municipal
years

-fl-

Public Relations Director

secondary. Box

field. Salary

AVAILABLE

W 619

years

seasoned experience public rela¬

tions, newspaper and

perienced

Albany.
nancial

business and commodities.

Ex¬

and
L627, Commercial & Fi¬

Box

Chronicle, 2 5Pai*k PL, New




York

25 Park PL,

8.

York 8, N. Y.

NATIONAL BANK OF THE

The Chase National
a

dividend of 40fi

stock of the Bank,

per

TRADER
Young
years

man,

seeks

years

of

six

registered
new

Commercial
Park

representative,

connection.
&

Place,

Financial

New

Box

C-46,

Chronicle,

York 8, N.

Y.

York has declared
of the capital
holders of record at the

the 7,400,000 shares

1946.
will not be

closed in connection

with the

of this dividend.
THE

age,

over-the-counter trading expe¬

rience,

25

28

on

payable August 1, 1946 to

close of business July 11,

payment

CITY OF NEW YORK

Bank of the City of New

share

The transfer books

writing in

legislative work in Washington

Age 41.

New

editorial work; promotion;

preparation brochures, pamphlets, etc.;
fields of finance,

Commercial & Finan¬

Chronicle,

cial

Twenty

THE CHASE

at

Meriden, Connecticut is closing its affairs.
All
creditors of the association are therefore hereby
notified
to
present
claims for payment.

President and Treasurer
June

declared
per

the

declared
a
regular quarterly dividend of 62'Ac
per
share on the outstanding $2.50
Cumulative
Preferred Stock
of
the
Companv,
payable July 15, 1946 to
holders 'of such stock of record at the
Board

quarterly dividend of 50c

on

QUARTERLY DIVIDEND

nicipal and investment serv¬
ice departments of large fi¬
nancial institution in Wall

York 8, N. Y.

SEGAL SAFETY RAZOR

The

period of 26 years in Wall Street. If you

up over a

i

of bills

Subsidiaries

NORWALK LOCK COMPANY

CHASE NATIONAL

BANK

CITY OF NEW

YORK

OF THE

W. H.

Moorhead

Vice President

and Cashier

j
<

"

-

THE COMMERCIAL & FINANCIAL

3532

S, L. Weedon Returns
To

Hugh W. Long Go.

citation stated that he "facilitated

Thursday, June 27, 1945

CHRONICLE

I. P. Brown With Cahn Co

INDEX

flow of enemy information from
the field, which strongly influ¬

a

War Department prepara¬

enced
tions

the offensive

both

for

and

Cahn

3504

Bank and Insurance Stock
Broker-Dealer

Personnel

Chemical Warfare Service."

Dealer-Broker Investment Recommendations and Literature—

dent,

Army
Commendation Ribbon in 1946, at

Mutual

W.

Hugh

o

n

u

was asso¬

Com¬
Vice-

pany as

Charge
of
3ales
before
lie was called

a Major in
Chemical
Warfare Serv¬

as

Sidney L, Weedon

ice;

During the war Colonel Wee-r
don was, for two and one-half

of the Intelligence

Branch, Chemical Warfare Serv¬
ice,

tour

During

D. C.

Washington,

this

called

duty he was

of

to make an extensive trip
through the Middle East, North
Africa, Italy, the United King¬
dom,
and
Normandy,
France,
shortly after D-Day, interviewing
prisoners of war and visiting Ger¬
upon

installations.

man

In

1945, he was sent

January,

Lon¬

Attache

don as Assistant Military
for Chemical Warfare and

shortly

accredited

to the

was

Embassies

in

tache

Belgium,

Holland,

Switzerland

Luxembourg,
France

and

Assistant Military At¬

as

overseas.

He

awarded the Legion of

was

Merit

in

3484

Securities

Canadian

Real

3480

Utility Securities

Railroad

3592

Securities

Estate

Securities

3482

T

Securities Salesman's Corner

1945 at

June,

special

a

presentation made by BrigadierGeneral Marion Van Voorst at the

His

American Embassy, London.

Securities Now in Registration

3522

Tomorrow's Markets—
Walter

Old

Reorganization

NEW ISSUES

Trading Markets in
Bendix Home

FOREIGN SECURITIES

Appliances

Telecoin Corporation

M. S. Wien & Co.

ficer, USFET, the termination of
this installation was made possible
without the loss of efficiency."
Before Colonel Weedon entered

Pacific Telecoin Corporation

the investment business, he was a

Ironrite Ironer Co.

ESTABLISHED 1919
Members N.
40

Investment

York

Funds,
Manhattan

Stocks,

New
Bond

Investors'
Management
Fund, and Fundamental Investors,
which are sponsored by the Long
Company, exceed $100,000,000 in

Recent price

INCORPORATED

Members

45

Nets

York

NASSAU

telephone

Security

Dealers

STREET,

philadelphia

NEW

YORK

Sterling Motors

5

bell teletype

telephone

Enterprise 6015

REctor 2-3600

16

Association

new

york

Recent price

14

1-576

total assets.

Buda
With Harriman

riman

now

A Market Place for

associated with Har¬

Ripley & Co., Incorporated,

Federal

30

L.

MASS.—Dwight

BOSTON,
Pierce is

Recent price 30

Ripley Co.

Street.

He

was

PoIIak
Recent price

Low Priced Unlisted Securities

for¬

merly with Spencer Trask & Co.

Admiralty Alaska Gold

Lava

Metalastic

Basin Montana Tunnel

Continental

Cap Gold

Analyses

(A)

Corp.

Brewing

Petroleum Conversion

Federal Asphalt
Globe Oil & Gas

Sedgley (R. F.) Inc.
Standard Silver & Lead
Upressit Metal Cap

Hooven Automatic

50

*^^N^Y^elephoneHA^
FOR DEALERS:

TRADING

BROAD

ST., N. Y. 4

specialize in all

HANOVER 2-4341

TELETYPE—N. Y.

of

ufacturer

this
of

well-established
FREIGHT

man¬

CARS

has

favorable long-term outlook for earn¬

1-2866

ings and dividends.

Industrial Issues

Lamson

MARKET

COMMON STOCK $10 PAR
Stock

Insurance and Bank Stocks

Mines

Teletype BS 259

:

RALSTON STEEL CAR CO.

Morris Stein & Co.
Established 1924

Felt Co. Common

Boston 9, Mass.

:

Wicklund Development

New York 4, N. Y.

AFFILIATE: CARL MARKS & CO. Inc. CHICAGO

We

State St.,
CAP. 0425

Van Sweringen Corp.

Type

Kut-Kwick Tool

50 Broad Street

148
Tel.

Spanish & General Corp.

Harlow Aircraft

SPECIALISTS

request

Common

Paterson

Dover Brewing

SECURITIES

on

.

17%

Manufacturing
Matagorda Oil Royalty
Monarch Royalty

Chlorophyll

Copper Canyon Mining

r.ARL MARKS & P-Q. Inc.

Lithomat

HA. 2-8780

1-1397

Northwest Leather

Kobbe, Gearhart & Company

Gaspe Oil Ventures

&

Y.

J

Fund,

"Old Shares"

Haille

N.

of

ception in 1936.
The

Y. Security Dealers Ass's

Exchange Pl.f N. Y. 5
Tetetyne

children's books in
Ohio.
He had been
associated with Hugh W. Long
and Company, Inc., since its in¬
publisher

For Banks & Brokers Only

FOREIGN

as

governor of the New York Se¬

curity Dealers Association.

Commons & Pfds.

Kingdom, subsequent
to the deactivation of the London
office of the Chief Chemical Of¬

REORGANIZATION RAILS

'«

Co

City, has resigned

United

Teletype—N. Y. 1-971

Trading Markets

Selling Under 13

Investment Trust Issues

Corp.

Keyes Fibre Common
Merrimac Hat Common

Circular

Public Utility Stocks and Bonds
TEXTILE SECURITIES
Securities with

Thompson's Spa

a

New Eng.

in

Inactive

Zlnlisted Securities

10 Post Office

Frederick C. Adams & Co.
RALPH F. CARR & CO.
Milk Street, Boston 9, Mass.

Boston

New York
Hanover 2-7913

BS 328

Teletype Bs

69.

Bank — Insurance

24 FEDERAL STREET, BOSTON 10
Established in 1922

Teletype

Hubbard 6442

Securities

Square, Boston 9, Mass.

Telephone Hubbard 1990.

Specialists in
England Unlisted Securities

New

Available

LERNER & CO.

Market

Specializing

31

a

York

Rails

Warfare Service in

the Chemical

HAnover 2-0050

Jones

New

3510

Whytc Says

American

American

Allen Resigns As Gov.

3486

collection, evaluation ana
transmission of large quantities of
extremely
valuable intelligence
which
materially
assisted
this
Service in the accomplishment of
its mission."
Also, "due to his
voluntarily accepting all respon¬
sibilities pertaining to the han¬
dling of all matters of interest to

the

and

have

3500 Of N. Y. Dealers Ass'n
Herbert Allen of Allen &
3530

Reporter's Report

Public

York

Exchanges

3479
3498

Funds

Our Reporter on Governments
Our

New

added J. Prentiss Brown to
their
staff.

spent 18 months

He

also.

responsible^

Security Flotations

Cleveland,

to the American Embassy in

thereafter

largely

was

Calendar of New

for the

in March, 1942

Chief

London,

Weedon

to active duty

years,

the

Brussels, The
Hague, Paris and Berne from Jan¬
uary, 1945 to April, 1946, Colonel
at

bassy

in

President

received

he

the

on

den

ciated with the

Long

great credit

Washington, Major-General AlH. Waitt, Chief of Chemical
Warfare Service, stated, in per¬
sonally commending him, "as As¬
sistant Military Attache for Chem¬
ical Warfare to the American Em¬

d.

e

Wee¬

Colonel
don

an-

c

tion reflected

When

Long,

President,
n

of
Chemical
Warfare" and that "his contribu¬

phases

the

of

Baltimore Stock

3522

defensive

.

members

3531

Items

Sidney L. Weedon has
returned to Hugh W. Long and
Company, Inc., 48 Wall Street,
New York City, as Vice-Presi¬
Colonel

BALTIMORE, MD,—Frank D
& Co., Equitable
Buildine*

Page

Tel. HANcock 8715

Tele. BOston 22

Grinnell

For Your Retail

Pressurelube, Inc.

Utility — Industrial—Real Estate

^Seaboard Fruit Co., Inc.
^General Products Corp.

Luniker & Timber

LOW PRICED STOCKS

Sunshine Consolidated

Puklic

Fleetwood-Airllow, Inc.

^Susquehanna Mills

Bonds, Preferred and Common Stocks

Empire Steel Corp.!

Common

U. S.

Radiator, Pfd.

BOUGHT—SOLD —QUOTED

Preferred

&

New York 5

Telephone COrtlandt 7-0744
Bell

Teletype NY 1-886




request

REMER, MITCHELL 8c REITZEL, Inc.

Common

208 SOUTH LA

W. T. BONN & CO.
Broadway

on

Common

Eastern Engineering

120

*Prospectus

Northern Eng. Works

Farrell-Birmingham

Amos Treat & Co.
40

Wall

St.

BO 9-4613

WESTERN

SALLE ST., CHICAGO 4

UNION TELEPRINTER "WUX"

•

•

PHONE RANDOLPH 3736

BELL SYSTEM TELETYPE

CO-989

Hill, Thompson & Co., Inc.
Markets and Situations

Tel.

Tele. NY 1-1448

0

for

Dealers

Broadway, New York 5
REctor 2-2020
Tele. NY 1-2660

120

New York 5, N. Y.