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Final Edition
THURSDAY
^
'
(.Beg.
Volume 155
Number 4078
The
necessity
bonuses
other
S.
Eccles,
Marriner
Federal
Reserve
District
of
only
on
increases in wages, salaries,
payments" was stressed on May 25 by
Chairman of the Board of Governors of the
of
and
"restraint
such
an address in Washington, before
Bankers.
In declaring that the situation
Columbia
that employers in defense and in
non-defense industries must re¬
immediate
frain from the competitive
bidding
up of wages and salaries which re¬
sults inevitably from the increas¬
ing demands of war production
for additional workers
through taxes
they earn,
they might as well pay what¬
ever wages will hold their own
ernment taking
industry to part with its
employees." He went on to say:
have
workers
overmuch
heard
union agitation
for increased wages, but I ven¬
ture to say that the competitive
situation into which large and
small
employers
have
been
thrust by the very nature of a
war economy is doing
more to
drive
brakes.
hire
a
away
com¬
Government
the
But
loses taxes because
the
that
than all the combined efforts of
of the
some
from the high
into
pockets
collector may fail
escapes
money
corporate
the general level of
and income payments
up
wages
money
or
>
C "
'
Page
Expanded Fed. Tax¬
Utility Prosperity. 2122
Hard-Headed Skepticism (Boxed;.. 2i2i
*
ation
Elec.
to
RegularFeatures
Situation.........., v 2121
Washington Ahead of the
News,
2121
Moody's Bond Prices and Yields.. 2132
Items About Banks and Trust Cos. 2136
2135
2131
Trading on New York Exchanges..
NYSE Odd-Lot Trading....
State of Trade
General
Review
2122
...................
Commodity Prices—Domestic Index
Carloadings
............
Weekly Engineering Construction..
Paperboard Industry Statistics
Weekly Lumber Movement
2133
2134
2133
2134
2135
Fertilizer
2133
...
Price
Index...,-.
Weekly Coal and Coke Output
Weekly Steel Review
Moody's Daily Commodity Index...
Weekly Electric Power Output
Weekly Crude Oil Production
2135
2132
2132
2131
2132
Non-Ferrous Metals Market
2133
petitor's. The increased wages Reserve Reports Brokers' Balances. 2135
can be charged up to expenses.
May Cotton Sales...
2129
On cost plus (fixed fee) con¬
Miscellaneous
tracts there isn't any incentive
for the contractor to put on the Eccles Deplores Progressive Wage
perhaps about
.
the
of
most
and from
fense
We
little
have
horizon
incentive for stopping it.
They figure that with the Gov¬
the natural reluctance of non-de¬
-
no
or
Increases
N.
(Continued
page
on
Y.
in
Establish
Production 2133
War
FROM WASHINGTON
2134
Says Banks Must Assume Added
Responsibilities
Shipyards Lauded for War Effort..
Named Aide to Morgenthau
Large City Living Costs Higher....
New Cotton Exchange Members....
2125
2125
2125
2125
2125
2125
Sees
Stamp List...
2125
Enlarged Post War Economic
Need
Purchases
of
Voluntary
Bond
.............;..,
r
A'
' By CARLISLE BARGERON
:
it was
In the realization that has recently come to Congress that
losing its voice in the affairs of men, and in its efforts to do some¬
thing about the situation, that body seems only to bog down deeper.
Unjustly so.
Recently, the Senate Banking and Currency Committee gulpingly swallowed a proposal to authorize Leon Henderson and Jesse
Jones
to
subsidize
industries acaught in Leon's price ceiling propriations for a set-up of some
persons
which
would
strait-jacket. It was Henderson's 102,000
baby,
but Jones
went to
the make it next to Agriculture in the
,
for
front
for
so
it
many
just
he has done
as
New Deal projects in
it is
the past. .
' .
The Senate turned the
proposal
bureaucracies.
Government
cause
of
he
has
reported he is having plenty
in
trouble
getting his
priation,
the experience Jesse has just had
Now, according
with the New Dealers. Time after critics, this' is the
One underlying reason was
down.
time
Congress has delegated
thority
Jesse
because
But
to
was
it and Congress
him.
au¬
whittle
him
from
own
had confidence in
ago the
campaign
several weeks
authority away
and take it into their
this
hands.
stuff
that
has
when
So
Jesse
ap¬
been
such
the
Congress'
very
sort of
to
brought the
body
that, instead, it has
Congress' complacency in
matters that has permitted
bureaucracy to get the upper
hand
it.
over
Just why
it is assumed by the
are
difficult to understand.
his lesson.
his
-
reason
appointment of State Ration¬
ing Directors, their assistants and
Leon is seeking ap¬
V.
2127
Voices
Faith
ABA
Issues
in
Newspapers
2127
Regulation W. 2127
Shipping Adminis¬
Revised
Deputy
2127
trator
Supreme
Ruling
Court
Wool
Associates
Kent
Heads
Retail
Stock
Issues
Tax
2128
..............
Stores
Aid
to
numerable
turned
down
(Continued
clerical help.
the
times
a
Senate
President's
on
page
has
ap-
the Financial Chronicle in its
use
tion and loss.
binders
Upholds
for each of these
months'
issues
Chronicle. Orders for binders should be sent
is
designed
to
hold
two
"Expandit" Binder, 25 Spruce Street, New York City.
manent
who do the fighting) will insist that
the
maintenance
the
after
years
of
international
an
insure
to
war
freedom
from
peace-loving peoples until there is established that per¬
system of general security promised by the Atlantic Charter.
Finally, I believe they will demand that the United Nations be¬
the nucleus of a world organization of the future to determine
the final terms of
a
just,
honest and
an
durable
a
to be entered
peace
into after the
will
passing of the period of social and economic chaos which
inevitably upon the termination of the present war, and
come
after
the
Nations
of the
completion
initial and gigantic
of relief,
task
Patent
time of the armistice.
at the
be
it
Welles—and
Mr.
that
presumably the Ad¬
ministration
-^eyisages^years" of "social and economic
chaos" after the fighting has ceased before peace terms are
arranged or such countries as Germany, Italy and Japan
accorded the status of nations at all?
During which time
the United Nations will rule the world through a "police
of their own?
force"
And
(Continued
during
on
which
the
time
vic-
2123)
page
Hard-Headed
2129
Increase
U.
..
in
v.......
S.-Canada
Risk
War
.
Ins.
...............
2129
Cooperation Held
Permanent
2129
Pledge Program
Completed
Says AEF Will Land in France.
George W. Norris Dead..
N. Y. City Expects Vacationists
2129
2130
2130
March
2130
Cash Issue Offerings Down.
Land Bank Issue
Offer Texas
National
Bank Earnings
SEC
Reports
Companies
Bars
Small
on
Up in 1941 2130
Iron, Steel
................
Commercial
2130
2130
Use of Red
v.
.
.
2130
Cross
Emblem
2130
Home
Ownership Declines
Morgenthau
Charges Attempt
Tax Evasion
.
to
2130
at
.....
Outline
of
common
sense
and
common
ingly, that the
job
as
well
as
who
capable of realizing what is at
are
would
run
away
to
see
run
who would accept
man
same
away
a
this
from the
war
will
compromise peace,
or
from the obligation which we shall have to
that the
-
•
""'i
peace
*
-
is kept.
,
V
"
1'
-
2126
2126
responsibility must be entrusted
The isolationist who wanted to
be the
to
I believe, accord¬
conflict.
same
so
another
see
to begin it.
-
State Bankers Group..
will not
to whom
men
must be men
assume
Conference..
years
stake, and of formulating the policies needed to finish
2126
Bank
Favors
Mid-Week
'
^
"
Gets
we
man
who
tried to play it safe
cn
'
the issue whether
should assist in the fight against Axis conquest
would be
to whether we
should
safeguard liberty and the safety we have won, once
victory
the
first to try to
dodge the issue
as
Vacation
2131
Johnston
The
Operations Under
2136
Nat'l Bank Deposits, Loans Decline 2136
Seek Tenders on Sydney S'/jS
2136
H.
generation forced into the
now,
humanity, in endeavoring
affairs that another 20
2126
Lending
Regulation W
P.
arrange
Deficit
.".
Skepticism
We have every right, and every duty, both of self-interest,
Infringement
Claim
Vote
2131
Honorary
has been achieved by
blood and sweat.—A. A. Berle, Jr.
2131
Degree
Govt. Imports
Exempted from
Price Ceilings
2131
FDR Praises Canada's Air Training 2131
Nation's
Food
Supply
at
Extend Cotton
part,
a
we
suspect
that participation by
men
en¬
reasonable degree of hard-headed skepticism,
far
from
hurting, would greatly promote sound post-war
2131
Shipping Period.... 2131
April Sales on Registered Exchanges 2123
Says U. S. Must Join in Post War
Peace Effort
our
2131
Controls Street Car, Bus
Production
For
dowed with
Record
Level
WPB
of
and of rehabilitation which will confront the United
Says Govt. Must Keep Promises... 2129
Start
copies against mutila¬
to
2129
ODT
form. These will facilitate
The cost is $2.50 plus postage
which
of the Financial
to
new
of the Chronicle and will protect
fear
men
undertake
in the
power
2128
2128
Begin Normandie Salvage
the
police
(the
Nations
Bond
War
Declines French Gold Writ Review.
Discuss
supply temporary
United
Manpower Mobilization Program... 2128
Heads N. Y.
to
I believe they
the
2128
Board
Foundations' Capital Assets Expand
Course on Industrial Management-.
Inter-American
with the "Expandit Binder
binders in which to file current issues of
Quite the contrary, in fact.
Indeed it seems to us that
thoughtful reader cannot well fail to find some dis¬
tinctly ominous implications in his words. We quote:
2128
Treasury
Financing
Arrangements have been made
but
us,
reassur¬
the
Tapping Bill Approved
2128
Clarifies Duties of State Dept. and
BEW
....;;................... 2128
Asks
Of Our Subscribers
specific to
very
Wire
2129)
Binders For The Convenience
not appear
sa^d is not, at several points, particularly
2128
Members
Conference
Influx
Up until the time the New Deal
which is being most widely at¬ got a definite foothold, the mem¬
tributed to the Senate in killing bers of Congress, particularly the
the proposal is that Leon has ig¬ Senators, controlled the personnel
In¬
nored
members of Congress
in of the Executive Branch.
'underlying
the
But
Panel to Settle Labor
Loyalty
Named
2127
Palestine...
in
Strife
FDR
Mr. Welles does
what he
Can
N. Y. Bond
politicians and the
peared before the Committee in
support of this latest proposal, up-town New Dealers are not,
members wanted to know if he but unselfish public servants, is
not learned
Home
,
Atlantic Charter.
2127
Patterson
Hope for Jewish
Form Railway
Fund
-
intellectuals that the members of
Congress
had
2127
Renewed
climax
reconstruction
Rubber
for
Blamed
Must Win War:
Sees
..2135
Soldiers...
Citizen
Sales
submit
I
administer
New Dealers went on a
to
appro¬
■
Executive Branch into disrepute.
the
to
Be¬
by-passed Congress
Approved by Congress
2124
FHA Mortgage Authority Increased 2135
Simplify Naturalization of NonTechnologists
Shortage
affairs,
were on Memorial Day brought
by Under-Secretary of State Sumner
Welles;
It may of course be taken for granted that Mr.
Welles spoke with the knowledge and approval of the Presi¬
dent.
His address is in some quarters spoken of as a fur¬
ther and somewhat more explicit exposition of the so-called
of
sort
a
come
2124
RFC Increased Borrowing Bill
;
international
war
to
2124
$600,000,000 for War Housing.
Stresses
Current discussions of this latter subject,
frequent of late in circles in close sym¬
pathy with the Roosevelt-Willkie ideas of our part in post-,
which have been
2124
Growth
Asks
revival of interest in what has been termed "win¬
a
ning the peace."
ing.
Protection
June Food
AHEAD OF THE NEWS
with it
2134
Argentina
Resources
Board
House Passes Small Business Bill..
2127)
officials, from the President down, appear of late
lest a feeling of "over-optimism" de¬
velop here in the United States which might in some measure
impede the war effort, but in official as well as in unofficial
circles a hopefulness of an earlier ending of the war than had
been expected appears to be manifest, and it has brought
Shortage 2122
Rubber
on
Factories
Felicitates
FDR
Public
to have grown uneasy
2121
.....
Urges Action
taxes
tax
Copy
The Menace of
From
rates, has to be stopped.
Employers who see only their
a
"
not
rising prices but increased wages calls for coordinated
action on many fronts."
Mr. Ec-<«>
cles commenting on the "spiralunion leaders. This competitive
ing of wage rates," said that re¬
bidding for workers, resulting
in a rapid spiraling of wage
straint in the latter cases "means
Price 60 Cents
Thursday, June 4, 1942
Editorials
''
Financial
to
as
OfflcoJ
GENERAL CONTENTS
the
System, in
Section 2
-
/
U. $. Pat.
New York, N. Y.,
Eccles Criticizes Competitive Bidding Up
Of Wages & Salaries As Forcing Inflation
••
In 2 Sections
2123.
construction and
pacification.
re¬
/
THE COMMERCIAL' & FINANCIAL CHRONICLE
2122
Thursday, June 4, 1942
typical of results experienced and to be
•experienced by all the major operating electric and gas utili¬
ties in Ohio/ According to a study based on data submitted
I
P-'VYU
by nine utilities,.which, collectively, serve 85% of the popu¬
With Rubber Problem
lation of the State, the aggregate net income of the nine sys¬
The
seriousness
of America's
tems during 1941 was 15.7% below the average of combined
rubber situation
and the urgent
net income for the 1936-1939 base period.
need for speed in creating largeBy individual
scale synthetic
rubber capacity,
companies the percentages of decline ranged from a low of
\ at the same time conserving every
7.2%o to a high of 26.7%, with none of the nine companies
available
pound of rubber, are
reporting net income in excess of the base period average.
major points made by John L.
And when the tax rates proposed by the Treasury De¬
'mS^ By ERNEST R. ABRAMS
Collyer, President of the B. F.
Goodrich Co., Akron, Ohio, in his
The greatest threat to the continued prosperity of elec¬ partment were applied to 1941 operations, the aggregate net
testimony to the special Senate
tric and gas utilities in the country today is vastly expanded income of the nine utilities was 50.5% below the 1936-1939
Committee investigating the na¬
average, with the lowest decline 40.0%-, the highest 66.4%,
tional defense program. The com¬ Federal taxation. During 1941, according to National Indus¬
and with no utility showing an increase in net income over
mittee made public Mr. Collyer's trial Conference Board data, manufacturers of durable goods
statement on May 23; he stated
the base period average.
enjoyed a 49% increase in gross sales over the-previous
■, therein:
The reduction through Federal taxation of the aggregate
year, while makers of non-durable goods showed 1941 sales
"We must rush the building of
net income of nine important Ohio utilities to less than 85 %
29% higher than those of 1940. : But the gross revenues of
synthetic plants without losing a
of - their. combined average net income in the four years
moment.
Synthetic rubber pro¬ utilities expanded only 9% during the year.
%/
1936-1939 obviously cannot be attributed to the draining
duction estimates have been made
Moreover, even though their Federal tax bills increased
large measure, are
Editorial-
'■\:y
Urges Action To Cope
The Menace Of
■1
Expanded
•
V * c-'f*
♦
;|/| Federal Taxation To
i
Electric Utility Prosperity
:
for the years
these
by
1943 and 1944.
estimates
might
But
upset
structural
of
shortage
be
ma¬
sharply during the year, manufacturing enterprises, collec¬
tively, were still able to report a 1941 gain of 20%; in net
away of war-stimulated excess profits.
The maximum rate
of return which the Ohio Public Service Commission permits
electric utilities,
electric and gas utilities to earn on their proved investment
in facilities devoted to public service is 61/2% for gas utili¬
available
for dividends.
But the
terials, transportation delays and
income
shortage of experienced engineer¬
ing personnel.
The Government
due to substantially increased operating costs,
vastly expanded Federal taxes, and a capital turnover eight
times slower than enjoyed by general business, had an aggre¬
gate 1941 net income 3.3% below that of 1940.
And it is
now
proposed that Federal tax rates applicable to 1942 rev¬
enues be
expanded to a point where the net income of elec¬
tric and gas utilities will be some 30 % below the 1941 level.
and industry must organize so that
work will proceed with the ut¬
most speed, overcoming all hind¬
as
a
group,
ties, and
since
a
And
somewhat lower rate for electric utilities.
during depression years
of a decade ago were directed at reduced rates for household
rances.
It has been indicated that
gas and electric service, it is improbable that any one of the
nine Ohio utilities, on whose operating results these calcula¬
necessary priorities will be given;
and this, of course, is fundamental.
tions were based, even approached its maximum allowable
//■'■ "Equally important, however, is
But;these are generalities. Perhaps the best method of ■rate of return during the 1936-1939 base period. As a result
for us all to understand clearly
indicating the adverse effect of existing and proposed Fed¬ Federal taxation of electric and gas utilities at present or
that we have two other equally
big jobs to do. One is the collec- eral taxes on the earnings of operating gas and electric utili¬ proposed rates cannot be justified on the grounds that war¬
tion of scrap rubber so that we
ties, and upon utility holding company systems, is to sight time "excess profits" are being seized.
can fully utilize the facilities that
Moreover, with taxes at the levels proposed either by
specific examples. During 1941 Columbia Gas & Electric I
we
have for
making reclaimed
the House Ways and Means Committee or the Treasury De¬
Corporation and its subsidiary companies accrued Federal
rubber."
taxes aggregating $15,476,909.
This exceeds by more than partment, electric and gas utilities will lose all opportunity
In part Mr. Collyer also had the
$6,783,000, or over 78%, the amount of Federal taxes ac¬ to protect the owners of their equity capital. Rate increases
following to say:
And due largely to the vast ex¬ to correct for taxes are out of the question. Not only are
v* v "The other big job we have to" crued in the previous year.
do is to intensify our program of
pansion in its Federal tax bill, the Columbia System's 1941 they in opposition to the Government's price-ceiling policies,
rubber conservation.
consolidated net earnings were almost a fifth below those re¬ but with Federal tax gatherers preparing to take close to
"In
estimating future rubber
90 cents of each dollar of added earnings, these rate boosts
ported in 1940.
consumption
no
provision
has
Moreover, if the Columbia System had been forced to would, of necessity, have to be nine or ten times greater than
been made for the removal of
the relief they were designed to afford.
.present restrictions on tires for pay Federal taxes on 1941 operations at rates proposed by
-> civilian use.
If our electric and gas utilities are to be kept in a
Eventually products the House Ways and Means Committee, its 1941 Federal tax
,
-
public and political
pressure
-
made of rubber must be
%
«'
to
■
4
replaced
1940 by more than 141%, in¬
actually experienced. And if the
distant war produc- rates proposed by the U. S. Treasury Department had been
way must be found in effect in 1941, its Federal tax bill would have been 161%)
or vital services will break down.
Workers rriust have transportation
and
tion
from
jobs.
A
America's
automobiles
and trucks—key factors in U. S.
war
or
peace economy — on the
road. We must keep them rolling,
to
bill would have increased
over
stead of the ,78 % increase
soupd condition for the duration, if they are to continue
payments to investors for the hire of capital, our legislators
and tax authorities must recognize that they are deserving
of special treatment in future revenue laws.
They must
understand
that publicly regulated enterprises cannot be
subjected to the same exactions that apply to non-regulated
sense, of course, Columbia Gas & Electric is not
They must appreciate that governmental
typical of the holding company field. It suffered severely undertakings.
too.
last year and will continue to suffer under existing and pro¬ regulatory bodies long ago removed all possibility of war
V "This is the reason that we must posed rates; because so niany of its operating subsidiaries, profits or excess profits from the electric and gas utility
press for further action which will
fields.
make
rubber
available
for the engaged in extracting a mineral product from the ground;
have not found it possible or feasible to secure any major
basic needs of the American peo¬
ple. Only one course is open. We proportion of their capital requirements directly from the
need a much more intensive pro¬
public. Their capital needs, in the main, have had to be sup¬
gram of rubber conservation. This
plied largely by Columbia Gas & !Electric Corp., itself, and
can
be
accomplished
by
the
Internal Revenue Department rules have a penalizing effect
Reports from most sections continue to show a high level of
wholehearted cooperation of the
activity, especially
where the heavy industries are concerned.
Government, industry, the Army on that type of holding company capital structure.
'
keep
higher than in the preceding year.
In
a
The State Of Trade
:
i\ and Navy, and private owners of
automotive equipment."
■>
60
applications covering
of its work, with
'100 other patents in the course
of preparation.
patent
novel
In
features
discussing
thetic rubber
the
use
of
syn¬
in the manufacture
of tires, the B. F.
■
Unfortunately, however, the effect of existing and pro¬
posed Federal taxes ori the earnings of operating electric and
Mr.
Collyer traced his com¬
pany's 16-year synthetic rubber gas utilities lends little hope that these types of operation
research program and stated that can enjoy a healthy life under a tax-hungry Treasury and a
B. F. Goodrich had already filed
Congress which unwittingly ignores their special problems.
Goodrich Presi¬
dent said his company had made
and successfully tested passenger
car tires
in which synthetic rub¬
ber
replaced
all
of the
natural
rubber ordinarily used except
approximately
sulation
Mr.
scrap
one
ounce
in
referred
the
to
rubber situation as critical,
calling "for prompt and effective
action."
"Dependence," he said,
endeavor to set up a
"yardstick" for the measurement
operating conditions, to establish some basis for
the determination of earnings resulting from non-war and
non-defense activities, Congress accepted the four-year 19361939 period as the base period, and provided in earlier tax
legislation that the average amount earned during the base
period should be the measure of normal non-war earnings of,
private enterprises. It now appears to be considering the
abandonment of its own "yardstick."
for
in¬
around the bead wire.
Collyer
In
an
of normal
effect of existing Federal tax
To indicate the adverse
the earnings of
utility, consider the case of The
rates, and those proposed for enactment, on
an
operating electric and gas
Cincinnati Gas & Electric Company.
Supplying
gas
and elec¬
population of 725,000, largely in Ohio, its house¬
hold electric rates practically are the lowest in the country.
/'upon reclaimed rubber is a basic
factor in all planning to bridge Yet, despite an enviable operating record, and due almost
the gap until synthetic rubber be¬ wholly to increased Federal taxation during the year, its
gins to come in, and even there¬ 1941 net income was more than 23% below the average net
after,
as
well." He likewise said,
"it will take
an
all-out continuing
tricity to
a
income for the 1936-1939 base
period.
Moreover, if the rates
Employment
industry reached
the 'domestic steel
in
an
all-time
high in April, with 654,000 workers on the pay rolls, the American
Iron & Steel Institute reveals.
This was 1,000 more workers than
were
employed in March, and compared with employment of 621,-
000 in
April last year.
—
it is ^estimated, will produce
April pay rolls also established
a new monthly peak at $118,568,000 compared with $116,998,000 in
March and $108,557,000 in April of
686,700 net tons of ingots this
wee^ against 1,691,800 tons last
Official
I
last year.
business
as
well as unofficial
indices
disclose
that
'
production con¬
tinues to hold at high levels, the
latest report showing production
11.2% above the year ago total of
Electric
power
3,040,029,000 kilowatt hours. Pro¬
duction
of electricity
increased
0.7% in the week ended May 23,
\°
from
3,356,921,000 in the
port.
from the Associa¬
Railroads show
tion of American
carloadings of revenue
837,748 cars.
at
has held steady
generally high levels from Jan¬
uary
through May.
that
the second
witness
will
a
It is believed
half
of
the
markedly
year
accel¬
erated rate of industrial activity.
This
stable level of
business
is
considered
in
preced-r, view of thehighly satisfactorylat^
■
^ ^
fpars
fears pynrpsspH late
expressed
ing week, the Edison Electric In
stitute announced in its latest re¬
Latest reports
business activity
freight at
This was a decrease
last
year
work
that conversion to
would
war
temporary
slump.
With conversion drawing
to a close in a number of key in¬
dustries, and new war plants go¬
ing
into
business
cause
a
production
indices
constantly,
will
now
rise
1,304 cars, or 0.2 of 1% com¬
pared with the preceding week; a
decrease of 28,279 cars, or 3.3%,
rapidly.
It is expected, for ex¬
ample, that the Federal Reserve
compared with a year ago, and an
increase of 150,268 cars, or 21.9%
points over the remainder of the
of
Board
index
will
rise
some
25
recently proposed by the House Ways and Means Committee
year to reach the 200 level.
had been applicable last year, Cincinnati Gas & Electric's compared with 1940.
Output for war is at high levels
1941 net income would have been 53% below the average
; Steel
ingot production in the and well in excess of expectations,
informed sources state.
May out¬
ately needed.
for the base
period.
And had the rates proposed,by the United States is scheduled this
week at 99.3%
of capacity, off put was at an annual rate of $47,"I cannot emphasize too strong¬
Treasury Department been in effect, the company's 194l net
three-tenths of a point from last 000,000,000, whereas just a year
ly this imperative need to comb income would
have been 68% below the base period average.;
week's 99.6%, which equaled the ago the rate was slightly under
every county in this country for
The effects of existing and proposed Federal tax rates all-time
the scrap rubber that will help us
high established in March $10,000,000,000.
Mr. Nelson preon the net income of Cincinnati Gas & Electrip
to meet the rubber crisis."
"
Company, in: this,year. At 99.3% the industry, I diets that each remaining month
nation-wide
'rubber round-up' to
bring in the worn and discarded
rubber products that are desper¬
;
(
Number 4078
Volume 155
<of 1942; will
with
the
i
;
'
"exceeding
before v the ? Fall
'
'
1
1
y
•
TheYapidity with which Ameri¬
industry
converted
from
peace-time assembly lines to pro¬
duction
of
armaments
was
de¬
scribed by Mr. Henderson as "one
of
the
fern
greatest miracles in mod-
civilized
production." * The
nation's productive system, today
stands ready, he said, to transfer
'
?
'V
\
s:
can
••••;•■)
THE FINANCIAL SITUATION
rate
is over.v
season
•>
further progress*
see
annual
$60,000,000,000
2123
*
Y
>
(Continued; Ft'om First Page)
,
*'*
•
A Safe Haven For
•
torious powers will deliberate^ upon and ultimately decide,
perhaps upon the basis of: "good behavior," what the terms
of "a just, an honest and a durable peace" shall be?,
How
disconcertingly like our own ."reconstruction period" fob
lowing/the Civil War all ;thist.sounds! y; :
Investment Funds
Individual
trustees and other'1' fiduciaries interested
becoming acquainted with the Federally insured investment op¬
portunities offered by savings and loan associations should write for
in
current
An
Reconstruction and Rehabilitation
Investors,
explanatory literature to the associations mentioned below.
bearing the caption, *"Why save or invest in a savings
association," by Horace Russell, appeared in the May 28th
article
and loan
"Chronicle" on page 2024.,/
•
But of this period, which ^apparently is to precede peace
•
First Federal Savings & Loan Association of Clovis
treaties, of "relief, of recohstructioh :and of rehabilitation'?
// 116 East 4th Street, Clovis, New Mexico
reach.
Mr. Welles says:
/.-•
/ •
Quaker City Federal Savings and Loan Association
jr The general belief, among both
The problem Which will cbnffpnt uj
years .of the post*
1427 Walnut
Street, Philadelphia, Pa.
:
Government representatives -aria war
period are reached is < nqt; primarily;one of; production.
•
First Federal Savings and Loan Ass'n of Lake County
For
business men, is that' before th& the
world can readily prodiicfe : what £ mankind / requires* The
'
Leesburg, Florida
"
end of .the year nothing that is
•
problem is rather one of; distribution /and J purchasing power;, of
Atlanta Federal Savings & Loan Association
not essential to the civilian econproviding the /mechanism whereby what .the world " produces may
22 Marietta
Street, Atlanta, Georgia—Ask for booklet, "A
:
omy or to the war effort will be
be fairly distributed among /the j hatidnisJ of • the world, and of pro4
Safer and Better Plan" i
produced. The peak of consumer
•
Fulton County Federal Savings & Loan Assn.
yiding the means .whereby,,: thepeople ;oi. the, world may obtain the
I goods production was last August;
World's goods, and services. /Yopr/; Government has already taken
Ground Floor Trust Co. of
Georgia Building, Atlanta, Ga. /
Output of such merchandise has
steps to obtain the support arid; dctivC cooperation of others of jth£ %;/;:? • Guaranty Savings and Loan Association
V been declining steadily since theri
United/Nations/in this • greabtask;/a>taskywhich in every sense of
2004 Second
into
manufactured
'
goods
issue of the
i
any
quantity of ' raw materials within
..
.
...
,
•
•
.
'
.and is
expected:to go down an¬
tho term is a new frontier—a
frontier of human welfare.
other 24%; in 1942.
J
Gasoline: rationing and restrict
on
instalment
purchases
'
i were
tail
trade last week to
1941
'
ends 'with' the
resultant
,
below the
Dun &
from want.
Bradstreet, Inc.'s statistics. Vol¬
ume dropped 3 to 5% below last
year.
The South was the only
region to show a gain; averaging
.
..
'
-
.
v
•
•
business.
new
The
response
.
ever,
minded, observers, state.
•
it
declined
Retail trade has now
to
This
total
Imperialism and Investment
a
in April, the
reports.
salaries,
payments
and
other
dividend
must vanish from the earth,
Department
of all
forms of income
ered in the light
payment, considof seasonal fac¬
would mean an annual na¬
tional income of $109,000,000,000,
official advices state.
Last year's
'total was:$92,100,000,000.
April Exchange Sales:
Market Value Down 22%
The
Securities
Commission
and
announces
Exchange
that the
.
,market value of total sales on all
registered exchanges for April
1942, amounted to $371,963,673,
a decrease of 22.2% from the mar¬
ket value of total sales for March,
and a decrease of 32.4% from the
'market value of total sales for
'.April, 1941. Stock sales, exclud¬
ing right and warrant sales, had a
'market value of $272,873,945, a
decrease of 20.0% from March.
Bond sales were valued at $99,075,024, a decrease of 27.7% from
March. The market value of right
and warrant sales totaled $14,704.
The
Commission further ex¬
plained:
|
stock sales,
and warrant
sales, was 13,585,307 shares, a
decrease of 16.8% from March.
Total principal amount of bond
sales
was
$202,862,000, a de¬
crease -of
33.9% from March.
The volume of right and warThe
volume
excluding
'
•
■
•
'
of
right
units.
exchanges
accounted for 92.2% of the mar-
rant
sales was 27,643
The two New York
American Savings & Loan Assn.
•
First Federal Savings and Loan Association of
Philadelphia
1332 Point Breeze Avenue, Philadelphia, Pa.
r
'
'
'
1
^
n
*Y-'\
1
4
j
"
*
1
P
t
J
1
-l< •
'
A
'
1 '
—
"Guardians, insurance companies, State,
firemen's, police and other pension funds, etc.
we
great deal of calm" reflection would be needed,
believe, to convince any realistic student of the vision¬
doubts in
many
minds.
Yet it must be
Group
Under Secretary of State Sumner Welles on
May 30 declared that
the future to determine, the final terms of a
just,
honest and
an
a
durable peace to be entered into after the passing of the period of
social and economic. chaos which will come inevitably upon the
termination of the present war,^>
■■ ..
■
after
and
the
completion of the' the world's goods and services."
gigantic task of relief, I He added that the United States
initial and
of reconstruction and of rehabili¬
alone
tation/which
the
will
confront. tha
will
United Nations at the time of .the
toward
there
Speaking at Memorial Day
ercises
at
Arlington
Mr. Welles
Cemetery,
"this
is
in
very
truth
war," and that "it is
cannot
the
be
regarded
fundamental
"In
no
"can
other
true
a
as
peoples
is
which
won
are
until
of the
secured."
achieved."
world
strength
lead
the
order
in
and
way
which
be freedom from
best
suited
to
their
circum¬
stances."
Saying the Inter-American
tem built up
manner," he added, of
be
a
can
the
"to
want,"
and to this end will respect the
"right of all peoples to determine
for themselves the type of inter¬
nal economic organization which
a war
rights
peoples of the earth
ex¬
National
said that
have
resources
armistice."
the
sys¬
between the peoples
United
States
■
and
the
Western
Hemisphere "constitutes
He also expressed the belief that the only example in. the world
an international police power will
today of a regional federation of
have
to
be
maintained
and
in
the free
independent p'edpTgs,"
years after the war until the per¬ Mr. Welles expressed belief that
manent system of general secur¬ it Will never be relinquished, de¬
ity, promised by the Atlantic claring that "it should constitute
Charter, is established and that a cornerstone in the world struc¬
the
a
United
take
peace
Nations
during the
must
under¬
ture of the future."
armistice period
In conclusion, Under Secretary
nations, as Welles declared:
Charter,
If this war is in fact a war
which "may threaten aggression
for the liberation of peoples, it
outside their frontiers."
must
assure
the
sovereign
Another condition set forth by
equality of peoples throughout
Mr. Welles was that justice be
the world, as well as in the
done to those "individuals, groups
world <pf the Americas. Our vic¬
or peoples" truly accountable for
tory
must bring in its train
the war but that "no element in
the liberation of all peoples.
Discrimination between peoples
any
nation will be forced to
atone vicariously for crimes for
because of their race, creed or
which it is not responsible."
color must be abolished.
The
the disarmament of all
set forth in the
Atlantic
problem
will not
declared
that
the
primary
of the post-war period
be production, Mr. Welles
that it
will
be
one
"of
distribution and purchasing power,
many
funds,
the United States, after the victory is won, must join with the other
to become the "nucleus of a world organization of
of
that the constant stream of
sinking
United Nations
world—and of the hazard td
raise
municipal
To Insure Just And Durable Peace: Welles
ary
quality of such plans for remaking or reforming the
us of
undertaking any such
task as seems to be implied in most of what is being said
about "winning the peace." j Certainly. Mr. Welles' contri¬
bution should be sufficient j to • stimulate thought and to
and
school
U. S, Must Join Post War World
Asserting
a
:
v
Should Raise Doubts
Not
,,.
Dept. G, 4525 Hohman Avenue, Hammond, Ind.
Surely, those who plan in this
j
for a world millenium must be aware that there are
many places on this earth where private capital would not
flow and could not be expected to flow if they were left
wholly under the control and direction of local populations,
or if the insistence upon liberty "for all people" were car¬
ried to the point of Balkanizing these areas.
Resources are
not developed and the material - comfortsof life are not
made available to vast millipns\of- people without the in¬
vestment of capital—or withoutithe/guidance and direction
of those who know how to get the right things done and
who naturally want payment for their services.
Perhaps Mr, Welles; could/ noi be /expected to be sp6-i
cific in his discussion of literty r for all peoples and the
like.
In the first place, bur own/allies are masters of large
areas of the earth, of hundreds; of millions of alien
peoples.
India has of late been a good deal in .the public eye in this
connection.
So has Burma and Malaya.
There are many
other problems of a like sort, ' But quite apart from such
delicate subjects, the experienceof « President Wilson in
trying to put his "self-determination^ theories into practice,
particularly in certain sections of Europe, is of course well
known to Mr. Welles—not {merely' the difficulty of per¬
suading others to follow our lead, but the problem of apply-:
ing the concept even theoretically;
way
wages,
tors,
.
.
days of the old- style imperialism are over, they
all 'repeat in joint refraim -v Perhaps- they are.
Possibly
they ought to be. Certainly; there was a good deal that
poorly stood the light of day. Yet in the next breath these
world reformers insist that \ want, and the fear of want
record $8,784,000,000
Commerce
Somehow it seems less beyond credulity
spoken.
that Mr. Welles has
The
;ably, it is said.
climbed
the day-dreamers • of whom there are so many
to
Washington.
now
"
income
even
in
markedly from the frenzied buy¬
ing of the earlier months of the
year, a survey of retail executives
indicate.
Trade this month, as a
matter of fact, will fail to make
the usual seasonal gains, with the
result
that
seasonally. adjusted
/ trade indices will tumble noticeNational
Northern Federal Savings and Loan Association
4th and Cedar, St. Paul
•
/
a:,
Chicago, Illinois
at the time to be so fantastic-that it.was difficult to credit
ported
department store V sales
dropped below the 1941 figures
.|or the first time this year.
Retailers reported price ceilings
: had: stimulated
relatively little
•
curiosity or
Peoples Federal Savings and Loan Ass'n
1700 West 21st
Street, Chicago
•
\ both price conscious and quality
The "Federal Reserve Board re-
t
First Federal Savings and Loan Ass'n of
Wewoka, Oklahoma
:
to advertised sales, how¬
showed that shoppers were
3 to 7%.
•
Radnice Savings and Loan Association
3919 West 26th Street,
Is it
possible that the President is thinking seriously
of a post-war New Deal world resting at bottom upon the
Washington collection of reform and economic fallacy?
And financed by a generous United States
Government,
which by that time, despite all the wealth and productive
power of the country and notwithstanding, all the clever
market riggings that has been'devised in recent years, may
well be obliged to scratch for its dollars—or else merely
print them? One observer riot long ago had the hardihood
to, suggest that much of Asia after the war would be con¬
verted into a giant WPA project!- • His suggestion appeared
•
Prospect Federal Savings and Loan Ass'n of Chicago
1707 West 47th Street,
Chicago, Illinois
•
which will
exhaustion
>
•
.
nations^who: are joined with us, only the
United States will have/the Sjirehgthf and the resources to lead .the
world out of the slough in which it has struggled so long; to lead
the way toward a world order in' Which there can be freedom
week's figures for the
second week, according to
war.
..
then beset so many of the;
factors in the decline in re¬
same
the
When
tions
Avenue; North, Birmingham, Alabama
/frontier ; of limitless' expanse~-.the
providing
the
mechanism
whereby what the world produces
may be fairly distributed among
the nations of the world, and of
providing the means whereby the
said peoples of the world may obtain
age
The
of imperialism is ended.
right of a people to their
freedom must be recognized, as
the civilized world long since
recognized the right of an in¬
dividual to his personal free¬
dom.
The principles of the At¬
lantic Charter must be guaran¬
teed to the world as a whole—
in
all
oceans
and
in
all
con¬
tinents.
propaganda
now issuing from
Washington and from other sources, particularly, perhaps, conflict in the years to come. It is so obvious that what¬
ket value of total sales, 89.5%
Mr. Willkie, is apparently creating an emotional "attitude" ever can be done to reach such a goal should be done that
of the market value of stock
among the American people which cannot fail to be dis¬ few pause to give a commonsense appraisal to proposals
sales, and 99.8% of the market
It is so easy to talk about the designed to accomplish that most desirable end.
value of bond sales on all regis¬ turbing to the matriculate.
tered securities exchanges.
Is it not about time some one came forward with a
folly of winning the war and "losing the peace."
It is so ;
•
•
V
...v
.
The
sales
-
market
on
value
all exempted
exchanges
for April
$483,370.
of
total
simple, and so appealing to the .thousands who are obliged\ warning of "over-confidence" about "winning the peace,"
securities
to suffer the hardships, npt to say the terrors, of this war, to ' and insisted that efforts designed to "win the peace" meet
1942 was
insist that adequate stepls; beHakeh to; jprevent another such the" tesf of reasonableness and practical feasibility?;1
UU1.4', J,. \\; i
Post War Period Of Greatest Economic Growth £
Envisioned By Dr.
Paul Cadman, ABA Economist
Envisioning the possibility after the war of great economic de¬
velopment for the United States, together with an increase in social
gains and world influence, Dr. Paul F. Cadman, economist for the
dinner session, on May 25, in
American Bankers Association at the
of
York
New
annual meeting
the
of the New York State Bankers
Association, asserted that he cannot subscribe to the prevailing
theory that the war will be fol- ^
lowed by one of the worst de¬
reason we can support a $200,-
pressions in history. "On the con¬
trary," he said, "there is a good
of
deal
evidence
substantiate
to
may enjoy
period of our greatest eco¬
nomic development, of our great¬
opinion
that
we
the
of
and
influence
world
est
our
greatest social gains." Expressing
opinion that "there will be
enough to do in the reconstruc¬
tion period to keep all the facili¬
ties of the modern world working
the
to
capacity
for
years,"
20
,
Mr.
But there remains the
impor¬
tant
question: How is all this
to be paid for?
So far as the
United States is concerned, our
.
will
instruments
financial
:
rest
gold reserve approxi¬
mating $25,000,000,000, the larg¬
est by many times of any ever
before accumulated. Despite all
the
speculation to the contrary,
is
gold
of
the
and
best
consti¬
It
value.
most
gen¬
erally accepted medium of ex¬
change and there is no con¬
vincing evidence that its im¬
portance has diminished in the
slightest degree. Although this
A gold is now essentially a part
of our total monetary supply,
:: it
could be used
by a wise
the
recovery
of our customers
throughout the world,
statesmanship
England did at the close of the
Napoleonic Wars when she set
about building an economic empire. ..Happily, in our post-war
period, - isolationism will have
completely expired. The pres¬
ent conflict has proved conclu¬
sively that isolationism is and
•
,,
;
has
always
been
myth.
a
We
shall therefore sit in the inter¬
councils
national
recovery
is
where
world
programmed
instrumented.
in
We
shall
and
invest
the
municipal bonds issued
to rebuild the City of London
and Coventry and other great
centers.
Strange
as
it
may
sound, we will supply the ma¬
chinery and equipment to build
up our competitors throughout
5
•
'
the world, with the full knowl¬
edge that our own skill and
energy and scientific genius will
thrive on competition.
In
all
likelihood, we shall be
heavily for im¬
ports of rubber, tin, and the
more than a hundred significant
in
the
market
commodities
which
sential part of our
is
ghost
been
laid.
are
an
es¬
daily life.
conceivable that
the
It
modern
has
isolationism
of
It
independent Amer¬
means an
people, released from the
ican
dead
hand
of
freed
from
the
bureaucracy
executive
but
which
controls
American
—
multiplicity of
necessary
are
nonetheless
a
also
adjunct of war.
was
"War Financ¬
ing and^the American Economy,"
also had the following to say in
part:
quote:
the
Unless
United
is
States
./
world.
We
only
are
now
on
the
with
mechanical
automobiles,
for
equipment, comforts, and con¬
veniences, will be virtually ex¬
hausted.
The pent-up demand
of a machine-conscious public
will be immense.
Should we
the
from
emerge
invasion,
markets
world
also
may
we
without
war
serve
tremendous
of
Nations with immense
demand.
populations will be confronted
with the problem of rebuilding
cities, transportation, factories,
farms, mines, oil fields, and all
the productive forces that have
come under the devastating in¬
Liter¬
fluence of actual battle.
millions
ally
look
the
the
to
food
people
of
United
for
States
which
supplies
will
will
stand between them and starva¬
tion.
FDR Asks $800 Million
For War Housing
President
Roosevelt
Heeds
requested
May 27 to appropri¬
ate an additional $600,000,000 for
war housing to meet the minimum
Congress
of funds
workers
tablished
"is
a
national
continue.
for shelter
wise
and
policy"
and
Roosevelt
Mr.
is
like
sound government. It rests upon
the
integrity
of
reason
we
One
promisor.
the
bear
can
a
debt
is that
who put up a large part
$200,000,000,000
•i"
those
of
■v
the
faith
money
in
the
have
unlimited
contract
which it is borrowed.
under
Another
From time to time I have in¬
the need
facilities
for the workers moving in vast
numbers into areas of expand¬
ing war production.
This
war
involves
a
tolal
tional effort and industrial
bilization.
pand
ciation, Mr. Sparks said that "although we have several days to go
reaching the end of the3>month, current sales indicate that the beginning of the program,
before
also
New York War Savings Staff of
$800,000,000 June quota
and the $1,000,000,000 per month
quota from July on, we will be
showing a national rate of partici¬
pation on a voluntary basis which
banker, is Chairman.
Henry
Bruere, Guy Emerson, Andrew
funds for the shelter of the men
excess."
and
meet
to
serve
leaving their homes
wise
industries is
war
our
established
and
a
national
policy.
That
with
Industry cannot
sufficient
na¬
mo¬
ex¬
rapidity
He added that "if
we
our
which
faster.
and
from all
cate
Consistent
over
Allan / Sproul,
Robert
Rouse, Lewis Pierson, Raymond
Ball,
John
Madden,
Douglas
Drummond, and
many
other
prominent
New
York
State
bankers are high on the honor
The
make
rising need for housing,
running far ahead of the supply
and threatening seriously to re¬
a
duce the effective
the
that
clear
in the United
children
small
afford to maintain two
volume
of
ac¬
to
there
the
irreducible
in
temporary
signed
to
nature
serve
the
de¬
and
lower
vehicle
main
for
such
public housing construction has
been the act of Oct.
amended, known
as
14, 1940, as
the Lanham
Act.
The funds under this act,
and under other acts to provide
housing,
practically all
committed.
They are being re¬
lied upon to meet needs arising
war
before
the
are
of
end
the
current
fiscal year,
and also to meet a
part of the need for the fiscal
year
To
of
meet the
minimum needs
1,600,000 war workers
migrating to war centers during
fiscal year
1943, I am sug¬
gesting to the Congress the
enactment of legislation provid¬
ing an increase of $600,000,000
the
in
authorization
contained
in the Lanham Act, as amended.
A large portion of these funds
be
ernment
returned
in
the
to
form
the
gov¬
of
rents
during the national emergency
and through sales thereafter,.
There is of
of
several
necessity
a
period
ing and the completion of liv¬
quarters.
In view of the
ing
a
of the need, which is
matter of
common
knowledge,
which its Banking
Currency Committee had in¬
serted, empowering the RFC and
and
must. have every one the Commodity Credit Corp. to
34,000,000 enrolled.
make subsidy payments so that
we
000,000
in
to
the CCC borrowing
finance subsidies for
of $12,000,000,000 a year.
The
monthly quotas are being bro¬
ken down by States and coun¬
agricultural imports.
Before
the
amendments
rejection
of
motion
a
recom¬
to
the
ties, and we are now attempting mit the whole bill to the Senate
to set up a reporting system so Banking
Committee
had
been
that States and counties will be made by Senator O'Mahoney in
able to match their sales against
'
the Senate on May 27, but during
quotas.
To
accomplish debate
on
his
motion,
Mr.
this we will have to lean even O'Mahoney yielded to the sugges¬
more heavily upon the banks of
tion
that
the
amendments
be
the nation and their highly ef¬ stricken from the
bill, and the
ficient
organizations such
as measure be passed as adopted by
their
this, New York State Bankers'
Association.
The
10%
not
regular
wage
earners
but who do have income.
income is
tional
of
now
$120,000,000,000
in
succeed
goal,
we
ceed in
000
a
Mr.
space
this
in
a year.
If
we
income
10%
will automatically suc¬
quota of $1,000,000,-
our
Sparks also said in the
of one short year, the War
Staff has built
organization
of
Savings
up
"a
more
150,000 organized, trained,
and
registered
salesmen
stretched over the 48
States,
Alaska
and
mendous
Hawaii.
This
organization
rected by a paid force
800.
House; the Senate acted
cordingly.
It has sold almost
tre¬
is
di¬
of about
$6,000,-
000,000 of its product in the first
of business.
In this great
example of American business
ingenuity has been proved the
svalue of the voluntary demo¬
year
cratic system at work.
He likewise noted
that the
co¬
operation of the New York State
banks has been conspicuous from
the
bill
that this proposed
legislation
receive the
early
consideration of the Congress.
suggest
FRANKLIN D. ROOSEVELT.
The White
House, May 27, 1942.
May
on
27
Senator
Brown said:
The present status of the Re¬
construction
Finance
tion is about
as
borrowing
a
Corpora¬
follows:
It has
of
$9,130,000,000.
It has borrowed and
has obligations outstanding at
the present time in the amount
power
of
$3,270,000,000. Therefore, it
on hand a loaning capacity
of approximately $6,000,000,000,
has
be exact, $5,860,000,000.
outstanding commitments
to
or,
It has
of
$11,000,000,000, which are
largely in connection with the
war
program.
So
Mr.
feels that
[Jesse
Jonesl
additional
$5,000,-
Jones
an
000,000 should be authorized in
order to
the RFC's
cover
commitments.
sary
lieved
that
fairly
will
such
well
which
a
the
if
the
be¬
will
sum
cover
occur
neces¬
is
It
needs
pend¬
ing bill becomes law — needs
which, of course, will require
the expenditure of only a very
small portion of the $5,000,000Of
000.
I
ac¬
During the Senate consideration
of
Na¬
excess
month.
selling
the
quota is also being
extended to all individuals who
months between the
authorization of funds for hous¬
urgency
of amendments,
been
than
1943.
the
the
50%
than
per
are
The
ing authority of the Reconstruc¬
Finance Corporation by an
additional $5,000,000,000 was com¬
power
in¬
come; brackets of war workers.
mar¬
The national quota beginning
serve a
remains
a
with July will be at an average
a
requirement for a volume of
new public construction, largely
Drop Price Subsidies
present time. An intensive cam¬ to buy and sell commodities, even
paign has been launched by War at a loss, in order to support the
Savings
Staffs
all
over
the price control program. In addi¬
country to bring this up to 10% tion, the amendments would have
for all regular wage earners.
authorized an increase of $500,-
workers
large proportion
remaining need,
and
toward this end Federal legisla¬
tion has recently been enacted.
But
beyond
these
methods,
RFC War Funds Voted;
of participa¬ price ceilings may be maintained.
individual is a little The subsidy section authorized
better than 5% of salary at the use of part of the RFC increases
1,600,000 war workers
Existing struc¬
to
behalf today.
The average rate
tion
the
of
what
exposed
participating. Before we are
done,
being counted upon to
large portion of them,
despite present over-crowding
in many industrial areas.
Pri¬
vate enterprise is being relied
upon
more
have
who
of those
are
absorb
plan;
are
housing.
tures
of
its
on
tion
those
1,600,000 during the fiscal
year 1943.
These
thought, time, and effort
States., Over 34,-
Bonds—and
the
,
or
about
need
contributions
altruistic
pleted on May 27 when the Sen¬
Savings Plan has ate passed the measure and sent
attained a high degree of de¬ it to the White House. The House
velopment, approximately 20,- had approved the bill on May 14.
000,000 of the 34,000,000 regular
Senate adoption came after the
workers are already exposed to
Senate rejected on May 27 the
separate
war
Pro-
The Payroll
cannot
migrating to centers of war
tivity will be kept down
Savings
ket!
It is estimated that
/
War
the
for their many fine and
Congressional
action
on
the
legislation increasing the borrow¬
War
families to the locality of their
jobs.
of
gram
6,000,000 others
are
self-employed.
This is the market for
units, there are other
where workers may find
feasible not to move their
war
roll
'
are farmers and agricul¬
workers; 3,500,000 are in
the professional group and the
cases
the
There
earners
tural
living
it
income
000,000
To reduce the
amount of new
are
to
000,000 of them are regular
wage earners, eligible to par¬
ticipate in the Treasury Depart¬
ment's Payroll Savings Plan; 7,-
increase
employment in war indus¬
,during the fiscal year
will amount to several
there
organized
of the voluntary
The organization is there
50,539,934
are
tries
million workers.
success
and the market is there.
plants unless remedied at once.
It is
is
nation
a
plan.
of these
use
Mr. Sparks further said:
system."
reports
the country indi¬
another
Pope,
Bayard
Mills,
policy should continue.
War production is now increas¬ would be far in excess of any
ing in geometric ratio.
Plant amounts indicated by the advo¬
capacities are expanding faster cates of a compulsory savings
will
dicated to the Congress
for adequate housing
reached, it would sound the "death note" for
This figure reduces to its true
the first quota to be used in the adding:.
perspective when we realize
($600,000,000
Mr.
that it is less than 1% of the War Savings Plan
Donovan, President of
funds made available for war for the month of May) will be
your Association, sits
on the
achieved, possibly with a small
Executive
Committee
of
the
purposes.
The allocation of war
of
es¬
States:
finance
Sound
tion.
has made $1,020,000,000 in
appropriations available for the
construction
of war
housing.
on
allocation
war
are
compulsory payroll savings. Speaking on May 26 before the annual
meeting held in New York, of the New York State Bankers' Asso¬
and
where the breadwinner
of skilled labor which
any country has ever enjoyed
in
the
entire history of the
Robert W. Sparks, National Field Director of the Treasury's War
;
appreciation of this need,
women
Z'V
Savings Staff, predicted on May 26 that, if the war bond quotas for
war.
far, Congress has shown May, June and July
Thus
full
a
our
huge buying power.
In
the United States our markets
shall have the largest
we
supply
every saver
who makes his or her contribu¬
win the
in
before
ever
need houses to help
we
threshold of developing markets
that
by
Financing the war is a stu¬ urged early consideration of the
pendous undertaking. It can be request for $600,000,000 more.
done with a margin of safety,
The
President's
message
on
provided we bring to the effort housing follows:
the impeccable integrity which
To the Congress of the United
will maintain the confidence of
taxpayer and
than
history,
housing required
by this expansion, all reason¬
able resources are being earn¬
estly pursued.
These include
conversion of local plants to
war purposes, transfers of local
workers to war jobs, and draw¬
ing upon new sources of local
labor supply.
While in some
cases adequate
housing should
be provided to keep families
together,
particularity
where
land, - we
shall
emerge from this war with our
productive capacities at an alltime high.
* *
* Perhaps of
greater significance is the fact
invaded
should
every
More
Thursday, June 4, 1942
Urges Voluntary Buying Of War Bonds tiMH
Payroll Saving^
1943,
needs of an estimated
1,600,000
itself, con¬ workers
migrating to war produc¬
sume
its wealth, and bankrupt
tion centers in the 1943 fiscal year.
its
resources
in
this
conflict, In a special message to Congress
but when peace comes again,
on that day, the President pointed
men will still need not
only the out that
$1,020,000,000 has already
necessities of life, but their en¬
been appropriated for the con¬
ergy and genius will find com¬
struction of war housing and he
forts, conveniences, and, ulti¬ said that this
figure is less than
mately, luxuries.
1 % of the funds made available
Mr.
Cadman, the subject of for war purposes. He added that
whose address
enough houses
bring the worker to the job;
keep him on the job, and main{tairi his ^efficiency -arid"mioHlfei
to
in
world could exhaust
'»
unless there are
un-
From Mr. Cadman's address we
finance
to
'/■
We will have to lend courage¬
ously — perhaps heroically — as
i
nomic statesmanship fully con¬
world-wide
the
still
measure
tutes
.
It means a new eco¬
markets.
a
upon
•
000,000,000 debt is that we have
productive capacity to pro¬
duce enough wealth after the
war
to service that debt, to
meet the interest charges on it,
and ultimately, to pay it.
But
that task envisages an indus¬
trial vand
agricultural output
greater than anything hereto¬
fore achieved. It means world
markets as well
as
domestic
the
scious of the fact that the
Cadman remarked:
;
■
THE COMMERCIAL & FINANCIAL CHRONICLE
2124
the
■>' ^ W.</>!a I1 'P>Ai'v u^i'.^ufT/
course,
the fund is
a
revolving fund.
House
noted
page
in
passage
these
1952.
of the bill
columns
,
was
May 21,
::
,
''i-
■
THE COMMERCIAL & FINANCIAL CHRONICLE
Volume 155 * Number 4078
Banks Musi Assume Greater
Responsibilities,
Make Greater Sacrifices Says NY BanMupt.
sion and War Shipping Adminis¬
trator, was the guest of honor of
the
Propeller
-
while
Club
of
Boston,
Rear: Admiral;-Howard
2125
Living Costs In Largo Cities Rose
"
L.
,M%ifwi Mid-March To Mid-April
Vickery, Vice-Chairman of the
White,, New York State Superintendent of Banks, Commission, was the principal
'/•The cost of living in large American cities rose 0.7% between
addressing the 49th annual convention of the New York State Bankers speaker at the banquet held by mid-March and mid-April, Secretary of Labor Perkins reports. This
Association in New York City on May 25, stated "whether the war the Propeller Club of New York. advance brought the Bureau of Labor Statistics' cost of living index
^
'
continues for two or five years, it is certain that the banks will Thomas M. Woodward addressed to a point of 115.1% of the average 1935-39 level.
On May 18 when price control regulations went into
be required to assume even broader responsibilities and make the club in Chicago; Capt. Edward
effect,
the prices of those goods under the "freeze" order will return to the
Macauley spoke in San Francisco,
greater sacrifices than they have to date." He added:
William ,R.
: -
,
and John Carmody was the guest
require^
to' deavoring to build up a profitable speaker of the New Orleans club.
The President's Maritime Day
maintain a strong position.
This volume of instalment loans will
be required to postpone the real¬ statement follows:
can be done in many ways, de¬
Maritime. Day, 1942—This is
spite the fact that some sources ization of their objective until
its first wartime observance—
However,
of revenue are temporarily cut after the war is over.
a fitting occasion for all of
in its larger aspects the program
off. We can, for example, review
us,
and the people of the United
dividend policies and be sure that is deserving of the commendation
and support of banking groups,
Nations, to join in a salute to
earnings are not. being distributed
our
Victory Fleet; to pay de¬
which are needed to eliminate for its purpose is to check infla¬
served tribute to the brave men
doubtful assets or build up the tion, to build up a backlog of pur¬
who man the gallant ships of
chasing
power
which will be
surplus account."
"The
that
times
"We
therefore
do everything possible
we
also," said Superinten¬
can
'
of lending insti¬
strive to observe
who possess initia¬ tutions should
intelligence should be the spirit of Regulation W as well
In advertising loan
encouraged to study banking in its as the form.
broader aspects to assume greater facilities, for example, the charac¬
responsibility and above all to ter and tone of the appeal should
recognize the obligation of bank¬ be formulated in the light of the
ing in a society where protection objectives which Regulation W
of the individual has become a is intended to accomplish."
Mr. White also observed that
major objective."
"Young
tive
men
and
'
Federal
able the
Government to
share with banks the risk of loans
for
advanced
production."
war
in
"inherent
desire
-
the
vessels.
program
a
in
shrinkage
of
We must carry
of
for
war,
forces and for those
Allies.
our
A little
their
sub-standard assets."
in
of ocean
war
materials
armed
our
a
of the earth the
corners
and
men
we
Mr. White continued:
pected to assume some portion of
the
to
engaged
are
largely
transportation.
"Banks will be reluctant to ex¬
prime loans, but perhaps any dis¬
"While under the regulation it advantage of this nature can be
is possible for the Government to offset by benefits realized from
collection or reduction
of
be responsible for the entire prin¬ the
cipal of the loan, it is evident doubtful items. The balance of
from the policy which is taking this year should furnish an oppor¬
shape that the banks will be ex¬ tune time for the elimination of
We
what is
added:
perience
more than a year ago
embarked upon the greatest
ship-building program in history. No other nation ever had
attempted so vast a maritime
?
j
enterprise.
There
who doubted
;
ceed.
f
that
.
will
those
were
ability to
our
Today I
we
can
sucyou
assure
perforrii this
near-
been
500%.
That of itself is
an
out¬
standing achievement.
We have: been, we still are,
confronted with
a
serious short-
age of ships to carry the essen¬
tials Of war.
Submarines and
the Axis
a
Both par¬
"By aiding in the effort to di¬
interested primarily in rect savings to war purposes,
one consideration—the capacity of bankers not only perform a pa¬
the manufacturer to build war triotic
service, but help to keep
aggressors
have taken
heavy toll, but that problem,
like
ties
is being solved.
are
substantially all of the exposure.
"The
success
the
of
will depend upon
program
the willingness
Of bankers to recognize the ele¬
On
the
ments of
wartime
Which
Day—May
safety as well as of risk
present, and of Gov¬
ernment agencies to realize that
the banker, no matter how eager
he may be to assist the war effort,
is not free to place in jeopardy
the funds in his control."
As to Regulation W, designed
for the exercise of control over
consumer
credit, Superintendent
are
*
White
in part:
said
velt
the
occasion
ism
observance
the
of
and
effort" arid stated that,
Axis
submarines -have
while
taken
a
heavy toll, that problem
"is being
seamen
on
the
falter
in
their
-
Maritime
war
patriotism of the offi¬
and
of their Vic¬
During these dan¬
gerous days and nights on the
sea
lar\es. of the world, with
danger lurking" above, below
surface, they do not
duty.
of
call
the
of
performance
Hundreds of them
service far beyond the
render
22—President
"vital contributions to the imme¬
have
people
proud of the hero¬
tory Fleet.
Roose¬
in a formal statement praised
nation's shipyards for their
diate
confronting us,
American
to be
and
cers
first
of
duty.
It
is
gratifying
that
the Congress has recog¬
nized such heroism and author¬
ized
.
the
bestowal
awards to these
who
men
of
proper
of the sea,
just as vital
ultimate Victory as the
are
to
our
men
in
try is writing a wartime preface
to the riiost glorious chapter in
our
history; It is making
contribution
war
way
the
to
a
vital
immediate
effort, and clearing the
for America's full restora¬
tion to the position in world
It was started a little over a year
trade befitting so great a na¬
from ago, will be performed, since the
shipbuilding
capacity
tion.
Sept. 1, 1941 to April 1 of this country's
has
been
increased
more
than
year
instalment credit was re¬
duced by nearly a billion and a 500%.
jAide To See^ Morgenthau
quarter dollars, or one-fifth of the : The day was marked by vari¬
Theodore Roosevelt Gamble, of
throughout~ the
total outstanding. While the regu¬ ous celebrations
lation was in effect during this country,
the outstanding event Portland, Ore., has been appointed
an
assistant to the Secretary of
period, it was by no means re¬ being the launching of 27 mer¬
the Treasury on a $l-'a-year basis,
sponsible for the total contraction. chant ships of the Victory Fleet
Federal Reserve authorities es¬ at 19 shipyards on all coasts and Secretary Morgenthau announces.
Mr. Gamble was appointed a con¬
timate that as much as two-thirds the Great - Lakes, ushering in a
of the decline was caused by the two-ships-a-day production rate. sultant in the Secretary's office
tal volume
of consumer debt.
has
estimated
been
that
,
.
liquidation of automobile paper The various "ports"-of the Pro¬
resulting from the restrictions on peller Club of the United States
the production and sale of motor again took the lead in observing
vehicles. Restricted production of the day, with- all five members
certain household appliances has of the Maritime Commission par¬
also been
C
-.t
;-i
.--v-
important factor.
an
' •
"Bankers
#
..J,
who
v
*
•*"
have
'
been
-(.-v
en-
Aid Small Business
con¬
up a
on May 26, by a 346,
approved the bill setting
Smaller War Plants Corpora¬
have
tion
within
risen
in
items
in
more,
months, than
the
past
15
War
the
Production
other group of Board, designed to expedite the
budget
of
the granting of war contracts to small
any
the
a
ion
Jan.
months
1
after
serving
for
six
War
Savings State Ad¬
ministrator in Oregon. In Wash¬
ington' he * has - been
serving
directly
as
with
the
the
Food—The
0.8%
rose
and
family
between
mid-April,
War
Savings
Staff, the Treasury unit in charge
ticipating in Propeller Club func¬
tions; p Rear Admiral Emory "^S.
of the sale and
Land, Chairman of the Commis¬
Savings Bonds and Stamps.
food
bill
mid-March
WPB
them,
as
and
capable of handling
the Senate-
doubling
approved
$100,000,000
working
capital for the corporation.
The
mandatory
clause
referred
to
larger (adopted by the House on May 25,
of many
retail prices
foods continued to ad¬
vance.
Increases
than
normal
as
at
were
this
for
season
by
a
vote of 72 to 25)
was
inserted
fresh
pork,
fresh
fruit
and at the instance of Representative
onions, and substantial increases Patman, Chairman of the Special
were
also
reported for beef, Small Business Comiriittee of the
potatoes
and
coffee.
Fresh House, who, according to the As¬
milk
and
certain
vegetables sociated Press, contended that the
such as green beans and car¬ amendment was necessary to
"put
rots
were
seasonally
lower.
Exceptionally large supplies of
oranges and lettuce resulted in
price declines unusual at this
season of the year.
Fresh fish
teeth in the bill."
Opposed to its
insertion,
was
however, it is stated,
Representative Jesse P. Wol-
cott, Republican, of Michigan, who
maintained it might interfere with
for the first contract activities on the Army,
months, as large; Navy and Maritime Commission,
reached the market,
Under the proposed legislation
declined
in
11
supplies
while canned salmon reached
a
the
Smaller
War
Plants
Corp.
high level.
would make loans to convert small
By the end of April, prelim¬ plants to
production of essential
inary reports indicated further war and civilian
goods and couid
advances for beef, pork, canned
accept contracts as the prime bid¬
salmon, butter, canned tomatoes der on government work and
new
par¬
and lard.
cel
Clothing—The
them out under sub-contracts
large rise in to small
businesses.
clothing
costs
between
midThe Senate version of. the meas¬
March and mid-April followed
ure was adopted on April 1, as
steady increases in these costs
was
reported in these columns
over
the
entire
past
year.
April 9, page 1448.
Since
Pearl
Harbor, clothing
,
costs have advanced
10%.
than
more
This
month, there were
June Food Stamp List
sharp increases in prices for
Fresh oranges and
grapefruit,
shoes, men's cotton work cloth¬
all fresh vegetables (except Irish
ing and woolen outerclothing,
and women's underwear, house- potatoes), and seven other foods
will be available during June to
dresses and hose.
families taking part in the Food
Ilousefurnishings — The
cost
of housefurnishings this month Stamp program, the U. S. Depart¬
ment of Agriculture said on May
showed a slight rise over the
28. The Department further said:
preceding
month.
Prices
of
sheets and mattresses, however,
Participants in the program
can
continued the relatively rapid
buy designated foods with
blue food stamps at local stores
climb of past months.
have
increases
Rent—Rent
been moderate this month.
The
largest rise reported, 1.2%, was
in
Buffalo, where activity in the
has
industries
war
Coal
cities.
*
and
declined in
'
Electricity
prices
cities
the
In
in¬
been
-
Fuel,
The nation's maritime indus¬
original form, ships to carry the essentials of
Regulation
W
by
successive war," the President expressed
"near-mir¬
amendments has now become a confidence that the
acle" of ship production, which
potent force in contracting the to¬
this
to 0 vote,
creasing.
the armed forces.
solved."
Saying that "we still are con¬
fronted with a serious shortage of
its
in
"Mild
The
reason
Shipyards Praised For
Contribution To Nation
others
numbers.
confi¬
dence is lacking, he will want the
Government to underwrite ; all - or<
the
Our ships are
going through, and we will con¬
tinue to go through in growing
equipment in accordance with expanding bank deposits under
Specifications. Where the banker control, for whatever part of the
has confidence in the technical Federal deficit is not met by sav¬
and business skill of the manu¬ ings or out of current income will
facturer, he will be willing to as¬ have to be absorbed by the com¬
sume a fair portion of the risk, but
mercial banks."
this
under
costs showed by far
the steepest rise this month. They
time
The
capacity
increased more than
shipbuilding
furnish the financing.
where
House Passes Bill To
moderate-income fam¬
come
Clothing
prices
has
general, there should be no wide tion^ it1 should be possibledto di¬ !
difference of opinion between the vert a constant and ever increas¬
Government officials who let the ing flow of savings into war
contracts
and the bankers who bonds.
He further said:
cases
all
pur¬
The House
nation's
principal risk. In cases where
Urging the encouragement of all
is true, the banks will con¬ workers to join in some system¬
:
tinue to have the obligation of atic plan for buying war bonds,
appraising those factors which de¬ Mr. White said that if this could
termine the ability of the bor¬ be accomplished while instalment
I
rower
to fulfill his contract.
In debt was in the process of liquida¬
other
of
of
services
and
trol.
miracle of ship production.
the
this
in
chased by
ilies will
60%
75%
further stated:
shipyards and the
our
efficient operation of our cargo
the part of the
on
goods
reached^
one
About
about
The measure was re¬
family, reaching business.
point, in April, 1942, more than turned to the Senate for action on
the shipyards and factory work¬ 26% above the level of January, two major House changes which
1941.
later, however, will likely have to
ers.
The
The tenth annual observance
By mid-April, families of wage be adjusted in conference.
main
earners and lower-salaried work¬
House
of Maritime Day
changes from the
bears more
than ordinary significance for ers would have to spend $1.17 to Senate-approved bill were the in¬
all the people of the nation. buy the same things for which clusion of a clause making it vir¬
At no; time itt our -history have they spent $1 before the outbreak tually mandatory for government
war
we
been more dependent than of the war in August, 1939.
agencies to award contracts
The Secretary's announcement to small enterprises certified by
we are now upon the produc¬
is the
Federal
the Board of Governors of the Government to encourage indi¬
to
liquidate
the debt
Federal Reserve System, the pur¬ viduals
which they already have."
He
pose of which he noted, "is to en¬
Referring to the issuance on
April 6 last of Regulation V by
and
tivity of
savings and cri¬
tical materials to the war effort.
In fact all types
White, "give more serious
attention to the problems of per¬
on to say:
other
each
1942.
foods
moderate-income
our
to divert current
sonnel." He went
level
March,
the
merchant marine, and those
other heroes without uniforms,
needed when the war is over, and
dent
highest
in
Ice—
many
the
fuel oil
prices increased.
Miscellaneous
costs
of
and
services and in
laundry soap were
In
Chicago, where
and
services
in
street
goods
miscellaneous
than
advanced
more
other city (1.1%),
fares were raised be¬
any
car
tween March 15
the
and April 15.
Savs.-Loan Literature
S. R.- Gaynes & Co., 225
Broad¬
New .York City, brokers
specializing in the sale of Federal
Savings and Loan insured Cer¬
tificates, represent over four hun¬
dred associations throughout the
and
literature
promotion of War statements,
free
upon
carry
and
in
their
latest
which
request.
list
will
files
Department said
apples
and
fresh
been removed from
because
of
a
seasonal
supply, and that Irish
potatoes had been removed be¬
cause
price
an
no
increasingly favorable
longer warranted addi¬
market
support
for
the
crop.
With those
changes, the
com¬
plete list of foods available dur¬
ing
June
includes
shell
eggs,
butter, fresh oranges and grape¬
fruit, fresh vegetables (except
Irish potatoes), corn meal, dried
prunes,
hominy, (corn)
grits,
wheat flour,
enriched wheat flour, self-rising
flour, enriched self-rising flour,
and
whole
wheat
(Graham)
dry
edible
flour.
beans,
>
Operating through established
way,
nation
the
fresh
short
charges
in
laundry
prices of
general.
ing June,
that
tional
Goods
Services—Increases
for
areas where the program
is operating. In itemizing foods
available for blue stamps dur¬
pears; had
-
on
Northeastern seaboard,
in all
food
Food
distribution
Stamp
ducted
by.
Marketing
channels,
program
the
is
the
con¬
Agricultural
Administration,
/i
financial
be
sent
are
invited to avail themselves
Trust officers this service.
o
THE COMMERCIAL &
2126
FINANCIAL/CHRONICLE
2. Rents, Royalties and Other
Morgenthau Charges Attempt To Escape
At what is described
the Treasury
Deductibility Of rents, royal¬
ties or other payments to/share/
holders depends upon whether
such charges are in fact fair and
reasonable payments for the use
of property and are not merely
"an unusual night session/' Secretary of
Morgenthau appeared before the Joint Committee on
and House on May 28 to
Revenue Taxation of the Senate
Internal
"of
Committee
the
tell
as
some
of what
instances
to
seem
be
to
me
unpardonable attempts to escape wartime taxation,"
"what the Treasury is doing and intends to do to
stop these practices."
Mr. Mor-«s>*
important to aviation. This cor¬
genthau asserted that "in every
instance the method used by the
poration is owned almost en¬
tirely by one man, his wife and
taxpayer was to inflate expenses
with
the
evident
purpose
of /y; his brother.
The two men in¬
creased their salaries from $12,avoiding normal and excess prof¬
000 and $15,000 in 1939 to $72,its taxes on corporation earnings."
000 and $90,000 in 1941.
"The devices used," he said, "in¬
The
cluded the payment of excessive
royalty rate on the patent joint¬
ly held by them was increased,
salaries, the distribution of un¬
to
the
with
earned bonuses and the payment
that
result
with
ex¬
panded sales for war purposes,
the royalties paid to them inported services to persons closely
connected with the management / creased from $87,000 in 1939 to
of the companies involved."
$1,179,000 in 1941. ,
He
went on to say that "these prac¬
As to the question of deciding
unreasonable
of
for
sums
pur¬
,
.
_
,
tices, if successful" would reduce whether the names of those con¬
the revenue of the Government, cerned should be divulged, Mr.
the revenue we need so urgently Morgenthau stated that he would
for/ fighting
and
winning the leave such decisions to the Com¬
war."
The Secretary cited seven mittee; : "personally," he said, "I
illustrating the practices ep- am inclined to believe it would
into to avoid payment of have a very wholesome effect."
taxes on 1941 returns of corpora¬
The steps the Treasury is tak¬
tions holding war contracts. With¬
ing to detect and deal with these
holding the names of corporations
evils, Mr. Morgenthau said, are
and individuals involved, he said
(1)
expediting examination Of
that the particular cases noted tax
returns
and
corporation
were
disclosed
as
a
result of records to determine
cases
tered
whether
ex-
speeding up the Treasury's in¬ c e s s i v e
expenses
are
being
vestigation of 1941 returns of cor¬ claimed and (2)
disallowing ex¬
porations holding war contracts. cessive expenditures which hate
Briefly
Secretary
Morgenthau the effect of.reducing corporate
enumerated the cases as follows:
tax liabilities.
He added that the
A makes an im¬ Treasury is compelling
corpora¬
portant airplane part. This cor- tions to include such amounts in
poration is owned by one man earnings and at the same time
Company
v
who
himself
hired
representative.
/ tion in 1941 was
its sales
as
His compensa$1,656,000. By
calling
the recipient to pay
upon
full personal income taxes on the
amounts received.
these
earnings
Disallowance of excessive exwith those of the corporation,
we
have blocked this obvious ] penditures does not represent a
new procedure, the Secretary con¬
attempt to divert profits and
tinued, since the law and regula¬
we have increased the corporaconsolidating
tions permit the deduction
'
tion's income tax by
$1,117,000.
only of
All ordinary and necessary business
stock in this corporation is held expenses for the purpose of deter¬
by
three i families.
Excessive mining profits.
Company B makes steel.
..
salaries
who
•
"
to officers
stockholders.
paid
were
also
were
He
for
did not
the
ask
additional
any
Committee
authority
to
deal with the "evil" but said that
The Revenue
Agent has recom¬
mended disallowance of $82,000
distribution
for
For Deficit
to
tern of
financing for that part of
of
C
Company
makes
.
vital following six general considera¬
tions which will
equipment for airplane pilots.
This corporation paid $31,104 in
rent in
one
•
1.
to Officers and Employees.
.
ly increased salaries and extra¬
ordinary
cers
and
daughter, just out of school,
got $7,500 a year each.
allowed
i
the
taxpayer
that the payments are, in
for services actually ren¬
fact,
dered
by two brothers and their wives.
dividends
unless
proves
Company D makes tools and
dies.
This company is owned
paid
bonuses paid to offi¬
employees will be dis¬
or
In
of $40,000 in
and
determining
payments
$100,000 in 1941, while
reasonable.
are
are
v
the
whether
reasonable, it will
salaries
be
paid in
much
as would ordinarily be paid for
like services by like enterprises
totaling $128,000 were
1941 to the president,
his wife and his brother.'
Company
The
stock
families.
E
is
forgings.
by three
makes
owned
stockholders
and
who
factors
in
were
relatives
increased
of
disallowed
to
*
!
y
'
Company F makes equipment
airplanes.
Three principal
officers of this corporation took
salaries
of $100,000 each and
corporation claimed it had
aside* over ■ $575,000
in
bonuses.
Salary and bonus pay¬
found
totaling
to
be
disallowed
$516,000
excessive.
deductions
performed by the recipient,
the
character
and
of
responsibility, the
time devoted to the enterprise,
and the peculiar ability or spe¬
ficer
or
particular of¬
employee.
Where the
payments
are
•
Other
S16,000 paid for watches given
to employees, $14,000 for ban¬
to relatives or to
shareholders, the taxpayer must
/
show
tions
'
that
pension trusts is governed by :will have the wholehearted sup¬
the
23 (p) of the. Internal port. of
15,000 commercial
Revenue Code.
If payments .to banks of the country and at the
such trusts are reasonable, their jsame time permit the Treasury to
deduction will be allowed, rlf have complete; flexibility of ac¬
the payments are unreasonable tion-/' Mr. Massie went on to say
ments
«
1J
*
family
considera¬
profits Ho-share¬
holders, the deductions will be
distribute
to
It is also
disallowed.
our
are
not
distributions
of
its attributable to
causes
entire-
and picnics, $4,000 for H-ly unrelated to the activities of
the officers or employees, which
photographs taken at banquets
and
picnics,
and
$1,900 for i
are not unusual in these abnortickets to football games. Other
mal times, do not of themselves
important
deficiencies
were
justify or warrant large salary
found in the tax return.
payments.
"
Company G makes a device
quets
'
-
at Rio
American
policy
to set up a barrier : to; de¬
of
large
salaries,
bonuses, or insurance premiums
for officers under the- guise of
pose
ductions
i'f
•
is in fact a capital
many
will
be
Mr.
schedule
of
claimed
to 10
an
American Continent."
such
where it is not
expenditures
ments
5.
to
In
or
for Other Professional Services.
laid
test
in the
down
Revenue
ternal
items
orbitant
considered
Many of the factors that
tions.
2.
the, deductibility of
Particular
of this class.
items
attention
-
be
given to de-:
which
against public policy, and
for
ductions
are
will
payments
all such deductions will be dis¬
;
,
advertising
is
are
a war
the
con-
civiliza-
is
war
as
publics will be in attendance at
the conference.
It will be in
to
upon
use
their fa-
ing which cannot be absorbed
by/the public and the nonbanking corporations. It is not
i
question
-
a
;
the
I.
It is
session
banks
just
of
whether
want
or
not
do
their part as it is for Geni; eral Motors to discontinue the
in their place produce war ma¬
chines. Each bank must do its
i
reasonable
5.
are
,
relation
ury
permit the banks to set
•
;
to
engaged. /This
is not intended to exclude insti¬
.into
i
6.,
habits of the public;
expenditures are extrav¬
;/
,
sound
a
* 10 years.
tutional
the buying
up ma¬
turity schedules which will fit
the business activities in which
the enterprise is
Z
It. is hoped that the Treas¬
will adopt a general pat-
tern for the financing that will
and ]
This
crease
.
policy—say
..
.
one
Elect Myers President
the annual
meeting of the
New York State Bankers
Associa¬
tion, held in New York City on
May 25, John P. Myers, President
of the
Plattsburg National Bank
and Trust Co. of
was
elected
ganization
Plattsburg, N. Y.
President of the
or¬
succeeding Eugene
C.
Donovan, President of the Auburn
Trust Co., Auburn. Mr.
Myers had
been Vice-President of the Asso¬
ciation. E. Chester
dent of Public National Bank and
Trust
Co.,
elected
dore
New
York GRy,
Rokahr,
Vice^Pfbsident and
Co., of Utica,
named
was
Treas¬
urer.
Mr.
Myers announced
inas-
tion:
Agriculture:
Nicholas
Jamba,
Manager,
Agricultural
Depart¬
ment, National Bank & Trust Co.,
Norwich;
Bank
Management and Re¬
Tait, Vice-Presi¬
dent, Genessee Valley Trust Co.,
search: Robert C.
Rochester.
County
Organization:
A.
Neilson,
Gowanda,
President,
Convention:
Stanley
Bank
Robert E.
of
Wilson*
Vice-President,
Osborne
Co., East Hampton.
Trust
Legislation: Frederic E. Worden, President, National Bank of
Auburn, Auburn.
Public
Relations:
Edward
M.
Carney, Public Relations Counsel,
Mount
Vernon
Trust
Co., Mount
Vernon.
Vice-President,
Chase
Bank. New York
To enable the
this increase,
ings to 7
or
Dividends
the Federal Reserve Board will
^market purchases. Gross earndirected to public-patron¬
which might reasonably be L, ings of banks will ,be increased
expected in the future, such o-, but higher operating expenses
and a 94%
excess profits-tax
payments will be disallowed as
deductions.
V
/ V_\ /•'•' /.will tend to limit bank earn-
June
on
1, the appointment of the chair¬
of the following seven stand¬
ing committees of the Associa¬
men
Trust Functions: John A.
will
greatly the earning
was
Vice-PresideiylZand/Theo¬
Treasurer of First Bank andTrust
to
build
x;// 7.
8% of capital funds.
held
in
at
order
capital.
no
financing
question
but
be handied by the commercial banks.
To
•
accomplish
need
the
it
can
bankers
understanding,
^nd, .above all,
:
be
amounts
There is
that this
\
up
Burns,
National
City./
should
conservative
age
.
American
At
.
financing
sets of the banks.
/banks to handle
to
agant and out of proportion to : ;, probably have to make availthe size of the company or to / able a liberal amount of excess
the amount of? its advertising // reserves by reducing bank re¬
serve requirements and by open
budget in the past, or if they are
not
Pan
a
N. Y. State Bankers
to
participate.
important that they
as
the
at
period of approxi¬
mately 10 days.
The commercial banks will
cilities and their resources to
finance that part of the borrow-
!
de¬
they
whether
and / necessary
ordinary
a
and
Western
As much
share.
for
If such
This
be called
The test of whether expendi¬
bear
3.
4.
using./
ductible
are
war¬
It
manufacture of automobiles and
6. Amounts Paid for Adverr
tures
fighting
possible of the
borrowing should be provided
by the public in order to reduce
...the risk of- inflation.
,
allowed.
:,
remarks,
extremely
costly and must be paid for
partly by very high taxation
and partly by borrowing.
apply in determining the de¬ i
ductibility of salaries and ;
bonuses will apply also in de¬ I
termining
10-
'
deduc¬
as
his
existence
tinuance of
i;./: tiorn " ;//*.;
>
ex-,
also
safeguard the
Gersten, Presi¬
America is
.for- its
they
unreasonable,
disallowed
be
will
are
or
,
;;
is,
whether they are necessary and j
ordinary
and
reasonable.
If
such
to
Massie said:
1.
In¬
Code,/that
one
issues and still others buy
summarizing
Mr.
"
pends upon whether they meet
interested in the
; ."beyond the 10-year limit.
or
Representatives
not follow the
this
year
Business, Including Fees Paid to
Washington
investment
are
Allowances
Obtain /Government
Expenses
do
to
in fact for re¬
of for improve¬
capitalized.
to
is expected that
representa¬
tives from all the American Re¬
plan calls for
to 10-year serial
plan. Some banks, fol¬
lows policy of buying only one
five-year maturities. Others
deductions
which
be ' considered
time economy of the American
nations.
Pfeffer's
banks
of
shown that the
betterments
or
ex¬
are
instead
pairs
To
measures
spaced
theories,
greater flexibility might be ob¬
tained by slight modifications
'
repairs.;/We
for
disallow
shall
for
deductions
as
penditures
are nationals
State which has committed
act of aggression against the
a
Union for
same
policy to
the items
our
carefully
the
.
progressive
maturities.
many
It
of / drafting
procedure for
.with
one
maturities
expenditures are not. We must
the use of one
guard against the tendency dur¬
maturities for all the Governing high profit years to, make
extensive improvements and to ;' ment financing that the banks
would be expected to take in¬
charge the cost of such im¬
cluding both new money fi¬
provements against profits un/
nancing and refunding. Since
der the caption of repairs.
scrutinize
conclave to meet
a
purpose
dical persons who
of
ties makes it possible for banks
and other buyers to set up a
capital investment or charged
against reserves for deprecia¬
tion, since the costs of repairs
are deductible while the capital
the
handling
of
bank
credits, collections, contracts of
lease .and consignments of mer¬
chandise, involving real or juri¬
issue; any part of any maturity
being
salable
independently.
The serial spreading of maturi-
expendi¬
last
uniform
tenth
which should be added to
ture
series of
from
general
standards of
each subscribing bank taking a
of its allotment in each
of 10 maturities of a marketable
fob income
of costs of repairs
depends upon whether the exr
penditure is actually for repairs,
The deductibility
tax purposes
or
a
serial
de Janeiro
of
"for
Pfeffer, Vice-President of the
National City Bank.
His plan
.is to have the Treasury Depart*
years
for Repairs.
4. Payments
by
evolves
VI
provides for
banks is that offered by D. K.
ment issue
payments to a pension trust.
followed
now
announce¬
January*
hemispheric
unity measures, the resolution
»
.
conference
Part
have much: appeal and which
provides the essentials of the
j
pur¬
vertising calculated to influence
profits in disguise.' Large prof-
Pan
adopted at the
third meeting of the Ministers
of Foreign Affairs which met
amount, or if the trust is not dh part:
created for the exclusive benefit ;
Many, plans have been proof employees, or if it is a device !
posed but one which seems to
the
influenced
The
in
paid and that the pay-
not
Chairmanship of
met* in plenary
the
Resolution
Section
advertising in reason*
able amounts or good will ad¬
have
amount
were
included
considered
of. such payments are the
set
ments
be
The
cial talent of the
for
the
that will
amount
amount
$568,000.
as
duties
523%.
the
reasonable
determining the reasonable¬
ness
of
Excessive salaries for 1941 have
been
that
is only
under like circumstances.
From 1938 to 1941 the
salaries of employees
stockholders
assumed
compensation
the
Welles,
at
to
the
Deductions claimed for great¬
stockholder,
without
special
training or ability, drew a sal¬
ary of $15,000 a year and a son
under
Sumner
session
"This pattern," said Mr. this known, the Union's
"should be such that it ment further stated:
Massie,
The deductibility of payments
Whether deductions for items
Salaries and Bonuses Paid
tee,
Financial
Advisory Commit¬
was
ciation.
of this class will be allowed de¬
president for using prop¬
erty which had cost her $45,412.
A brother of the principal
1940 and
in
sury
deficit: to be financed, by the
Inter-American
and Economic
.«
Pension Trusts.
or
to the wife of claimed in tax returns:
year
the
It
guide the Treasexamining expenses
Inter-American Banks
-—The
-
Paid
the
greatly
Treasury
!
made on May 26 by Union in Washington on May 22
Adrian M. Massie, Vice-President and set June 30 as the
opening
on his investment in the prop¬
ibf the New York Tfust Co., in ad- date for a conference of represen¬
erty which he permits the cor¬
tatives of the central
i dressing the annual meeting at the
banks, or.
poration to use.
Hotel Astor in New York of the equivalent
institutions,
of
the
3/ Payments to Profit Sharing •New York State Bankers' Asso¬ American Republics.
In making
lowance of $58,000.
outlined
the
that
in general terms some pat¬
Any shareholder should
[banks,"
fair return •
should be
Morgenthau
desired
: outline
be entitled only to a
if existing powers are not. ade¬
salaries, and the company] quate he would not hesitate to
has already agreed to a disal- make the request.
Mr.
be
Call Conference Of
Financing
/ The statement that "it is
in
1
treasury Outline
Ask
■the
profits.
report
'
device
a
particularly
and
Shareholders^/^?;*
Payments to
Thursday, June 4, 1942
job; /
.
will
courage
the will to
:
/
do
>•
'Volume 155
THE COMMERCIALS FINANCIAL CHRONICLE
Number 4078
-
:
Teehndlpgists Blamed
For Rubber Shortage
America's
rubber
acute
must
be
shortage
laid
to
-
I,,
They
•
started.
^
*
must - 'never ? get,
-
Form Railway Panel To
\
ABA Sends Members
Seitle Labor Disputes
if-we fight:
'They canh
this
rubber
war
-
and the fighting front.
■
•
.
.
dis¬
railway- labor
Observing that "we are winnings creation of a National Railway
Jr., Vice-President of the Ethyl the production war," Mr. - Patter¬ Labor, Panel of nine members
from which emergency fact-find¬
;
Gasoline
Corp., declared • at
a son said;
meeting of the Chicago Section of
But we must win the trans- ing boards will be chosen to ad¬
American
Chemical
Society,
May 22, when he received the
•Willard
Gibbs
Medal,
honors, in
highest
portation
.
.
rubber
within
to the
probably be
can
the
United
it
obtained
cheap la¬
bor,
said
Dr.
for
his
cited
Midgley, who was
discovery of tetraan anti-knock agent
.ethyl lead as
Jin motor fuels, for his devolpment
of safe refrigerants, for his con¬
tribution
to
a
was
of
democracy will be decisive.
can be concentrated
been
-
•
lions of
people waiting for- the
of rub¬
for
scientific
for other
and
what
to
.
rubber for
than
more
a
hundred
years. Dr. Midgley, who is Chair¬
man of the Board of Directors of
the
warned
from the "sad day of
suddenly
volume
or
huge
a
satisfac¬
a
Winning War Because
ton
in everybody's
mind," viz.: "Are We Winning the
War?" Robert D. 'Patterson, Un¬
der-Secretary of War, answered,
with the assertion on May 20,
winning the
we are
must."
we
war,
"There" is,
would be to lose much
be¬
he
than
more
It would be to lose every
war.
war that has been fought on the
battlefield, in the laboratory,; in
the
courts-^—yes, ; and
in
the
churches and
the schools,
to Senator
lows:
and at
greeings
live
to
thousand
two
world
this
in,' and
a
sembled
this
war,1Vhe went on to
"would be to lose Magna
Carta, the Napoleonic Code, and
own
.seeking
think that
of
children.
the
war
Mr.
were
Patterson,
addressed
to
the
at
National
the
in
The great
bilization
say
for
City; had the following to
in his warnings:
I
must
warn
you-
that there
will be hit-and-run raids
our
war
plants.
against
But there will
be
greater and more serious
raids
against the strength of
the
Nation
against
the
itself. Be
on
guard
offen¬
already under
Axis
peace
which is
way— and against the sabotage
sive,
V
and defeatism which will be set
•
*
.-
.
in
an
the one quickly in
attempt to strike a paralyz¬
motion,
ing blow to the heart, the other
slowly and insidiously, in an at¬
tempt to deaden the mind and
I
all take renewed
definite¬
a
We
k
:
"
Association
period allowed.
For ex¬
ample, an automobile loan made
originally for 12 months may be
extended
to
15
months, the
maximum for this type of loan.
mum
;
'
■
consumer
credit in
ciation's condensation of the regu¬
lation asserts,
"we believe it is es¬
private chartered
banking system to maintain the
dominant position of the banks in
this important field of service to
the general public."
our
Douglas Named Deputy
Shipping Administrator
appointment of Lewis W.
Douglas, former Director - of the
Budget, as Deputy Administrator
of the War Shipping Administra¬
tion, was announced on May 20
by Rear Admiral Emory S. Land,
War Shipping Administrator,
j
in
Convention
the
men
and
at. war
of
women
of their
newspapers
same
.
with which
make
other United Nations.
with
courage
an
I know that all of you assem¬
which
world.
with
always
who
enemy
the
bled at this anniversary dinner
face
destroy
same
-
our
vision
forsee
they
•
same
they
would
The
which
The
world or freedom for which
administration.
He has,
however, had no administrative
responsibilities and with, this
appointment Mr. Douglas will
join with me in not only plan¬
ning but directing the use of
ping
they raise food and
for America and the
arms
•
the
we
-
are
'
marine.
merchant
Mr.
Douglas's administrative capa¬
city is well known and I ,am
convinced that his agreement to
become
fighting.
Deputy
Administrator
"
."Your
answer
—
to
will
yourself
assure
a
vigorous and all-
,
and
Very sincerely yours,
•
--V-.
FRANKLIN D. ROOSEVELT.
underlying
It
two-
pressures,
ceilings,
the
rigidly restrained.
pressing
are
fully
comprise
less these
s;
against
•
^
particularly behooves busi¬
leaders at this time to im¬
ness
themselves the same
they
recognize j. as
necessary upon others.
I can
imagine no more mistaken pol¬
icy than that expressed in reso¬
lutions adopted by one of the
largest organizations of busi¬
ness at a convention in Chicago
pose upon
restraints
recently, when
these
inated
that
no
to
them—can
answer.
it."
■'
-
be
-1 know you
*
'
placed
men
who dom¬
proposed
councils
restraint
limit
or
be
only
one
will make
own
They did not hesitate to
wages.
of
sort
leadership is in¬
blind.
It
scarcely
credibly
successful
for
makes
in
increases
condemn
That
their
upon
week.
voluntary
It is not calculated
to make for equality of sacri¬
cooperation.
fice, if you call it a sacrifce to
fight for the preservation • of
country.
your
$
$
:jt
We
are
our war
and
£
out
effort
the
one
to use our
and
only
winning the war."
ships for
purpose
of
stage in
effort at
reached
forth
at the
now
which, on -the
and prices have
whole, wages
that
level
a
will
of
maximum
the
call
effort
In other words,
production.
I do not believe it can be suc¬
cessfully
shown
this stage
salaries
at
that increases in prices,
and
wages
are
necessary
to
stimulate
incentive
and
call
,
further production.
forth
has
time
been
isms
are
The
reached, there¬
effective
when
fore,
necessary
mechan¬
prevent
to
prices from passing into a dan¬
inflationary spiral. Price
controls alone are not
enough.
Taxes, debt reduction
and savings mu?t. play their
gerous
and wage
part in combatting the upward
spiraling of prices.
$
$
We
not
must
$
only willingly
accept heavier taxation than yve
ever before known—tax¬
have
ation
comparable to that which
im¬
the other democracies have
posed—but we must realize that
even after the payment of the
taxes now contemplated in pend¬
ing legislation, the rising tide
of national income will still en¬
gulf consumer markets and send
prices skyrocketing unless we
refrain from buying things we
do not absolutely need—unless
we
unitedly channel the excess
of buying power
ings Bonds.
into War Sav¬
.
sje
*
The inflation problem,
is
Douglas has been work¬
ing as my chief adviser, particu¬
larly in so far as it concerns
the cooperation of the ministry
of war transport and our ship¬
right
have; the
WSA,' Admiral Land said:
"Mr.
a
loyalty with which
they send their men to join pur
fighting forces. The same energy
have clearly ' in
duty and responsibility
Simultaneously,
and
editor
to expect
everywhere' in " the
come.
thirds of the costs of production.
It is obvious that price ceilings
cannot be held indefinitely un¬
loan, beyond the maxi¬
the
of
the
."The
nation
accomplishment of the four
upon all of us to work
fight toward attaining this
great objective in the days to
a
paper?'
eral march of mankind toward'
resting
salaries
•>
als do not extend the time limit
:
publisher his post as President of the Mutual
must
answer
the
question: Life Insurance Co. of New York.
'What do my readers have the In announcing thd appointment of
right to expect of their news¬ Mr. Douglas to his/ new post in
'
to
and
per
Rear Admiral
Chicago, said that "the men and Howard L. Vickery, Vice Chair¬
women
of a nation at war have man of the Maritime Commission,
the' right to expect of their news¬ was appointed Deputy Adminis¬
paper the same loyalty with which trator of the WSA for new ships.
Mr. Douglas since last February
they send their men to join our
fighting forces."
The President's has served as chief adviser to Ad¬
miral Land.
He is on leave from
message follows:
of de¬
velopment may be continued in
peace and harmony in the gen¬
will
ori
gram
tele¬
Inland
Roosevelt, in
May 19 to' the
"Every
world.
V
The
President
physical, economic
all looking forward
mind the
amend the Railway
Pr^ident Voices Faith
In Newspapers Loyalty
perfect example of what
freedoms
does
Order
Executive
tual strikes.
-
the day when that type
the
This
It merely
of the
war: an ^extra-statutory .panel
'.which will provide a means of
adjusting. disputes without ac-
be
are
■
sential, to
to take a strike vote,
or
•••
accomplished by a. free
people working in a democracy.
can
month, or $1.25
per week.'
Loans may be renewed, the Association's sum¬
mary of the revised regulation
says, provided that such renew$5
normal ^pmmereiaL-banks; has been, of
necessity, ; seriously curtailed by
be cpn- the present economy," the Asso¬
well-for many years.
•
Con¬
in" New
Victory"
Jewish
less than
-
sets up for the duration
educational
been
^
all loans may be not
on
"Although
Labor Act which has worked so
tine in the last two decades has
at¬
ference Board oh-^National Mo¬
York
^
Minimum pay-
months.
15
ments
of adjustment of rail-
not seek to
development
which has taken place in Pales¬
meeting
Industrial
a
Palestine.
Palestine, which existed some
and
those
annual
strike
«
ly removed.
remarks
whose
we
in
time ago, has been very
winning
are
we
to
because we must."
tendance
of
our
Yes,
/
those Press
encouragement in the fact -that
the immediate military danger
The Dec¬
Constitution.
home
of
efforts
establish
to
national
Independence
would be a memory among those
who survived the Gestapo, and it
would not even be known by their
laration
the
in
terest
of
'
in the absence of
annual
know, I have on several occasions expressed my in¬
;
even
labor disputes may
without requiring the
employees actually to go out on
As you
say,
our
second
Washington.
created in the image • of
lose
as¬
dinner of, the American Pales-
to
place
worthy of men
God. To
the
at
those
of
all
•
'•
a
tinued
;
my
| tine Committee, being held .in
years
decent
to
war
way.
...
military
convey
the
In this way the. usual
i
please
you
loans, which have a time limit
strike vote.
processes
Dear Bob:
Will
of
creation
:
Railway Labor
a.
committee, fol¬
" -' * ' J;':
;
Order
the
purpose
for
the
Wagner (Dem., N. Y.J,
Chairman of the
sci¬
entists and priests, by the cham¬
pions of justice and the martyrs—.
by all those who have fought and
for
the immediate
loans is "now 12'
;
The President's letter addressed
the stake-^by all the soldiers,
make
American
definitely removed."
To lose it
said, "no other choice.
:
danger to Palestine, which existed
sometime
ago,
has
been
very
maturity on
all
months, except
for automobile and motorcycle
i
an
Panel
consisting of a Chairman and
eight members to be appointed
by the President.
The Chairman shall have the power to de¬
signate- three members of the
panel
to
sit
as
such
an
emergency
fact-finding board
whenever, in his judgment the
dispute, if unadjusted, may in¬
terfere^ with the prosecution of
-
.
ing id establish a: Jewish national
home in Palestine and expressed
"renewed encouragement in the
fact that
this
National
terest in the efforts of those seek¬
the - question,
to
respect
he said, "is
For
provides
May 25 reaffirmed his in¬
on
of
hoard. "f
emergency fact-finding
Palestine Committee in Washings
We Musi; Patterson
"
With
shift in
the
of
provisions of the Rail¬
may request the creation
going to finish this War
dinner
.
We all know that wages and
:
for abandonment of the 40-hour
provides
a
'
in a mesgreeting read at the second
annual
the
Maximum
As in the past, no
down payments are required on
consumer
credit loans for the
•
-
if
Labor Act, instead of tak¬
ing a strike vote the employees
President Roosevelt,
sage of
has
it
modernization.
ment is 20 %.
-
way
Jewish Home In Palestine
*
,
where
consumers
greatest inflationary effect.
der the
Sees Renewed Hope For
tory substitute from nowhere.
an¬
tionary channels into the hands
of
::
purchase of unlisted- articles
and
services,
or
for
home
Order
Executive
that
for
Accordingly
strike vote.
a
the
year.
we are
The Association in its
ments.
nouncement May 29 also has the
Thus it is diverted
all.
dispute is not settled
by mediation or arbitration un¬
such
balance of
a
a
.
against
great
a
em-
take
would obviate the necessity
reckoning"
supplying
rubber
of
is
to tap at
from investment and non-infla•
•
profits,
bonuses, commissions, and other
compensations because to do so
might dampen their ardor tor
winning the war by impairing
their
incentive.
Yet,
at
the
same time, they
did not hesi¬
tate^to proclaim the necessity
power to occur
The autocracies be¬
gin strong, but it is the democ¬
racies that finish strong.
And
in
against .the
delusion that American ingenuity
or a miracle will, save the nation
Society,
That
them.
us,
the
to'
-
A year ago we feared a de¬
fensive war, here, on our shores;
Now our enemies fear an of¬
by
involved
.
In conclusion, he stated:
war,
for
necessary
-
victory on all three fronts.
our total war.
fensive
System covering instal¬
sales, instalment loans, re¬
ment
•
Let that be
Midgley
posed
seven
dealing
with fundamental aspects of rub¬
ber, which he said cannot now be
answered although scientists and
technologists have been studying
said:
vote declaring a strike .following to say:
It is brought out in the sum¬
fixing a date therefor.
In
view of; the fact that American
mary
that down payments on
all-articles listed by the Reserve
labor generally has agreed that
Board are now 33 Vz %, with the
during the war there shall be
no strikes it has become neces¬
exception
of
furniture
and
pianos, on' which the down paysary to adopt a procedure which
When
re¬
Dr.
questions
died
Board of Governors of the Federal
and:
to rise and take up arms.
.day
technologists,
cause
regulation deals with
rulings established by the
new
formal
'
all nver
the world to hold in! check mil¬
the "mental slothfulness"
"yes,
of the
sion
Hitherto before the' President
ployees
They will
the enemy.
against
termed
synthetic rubber
Referring
which
announced
Reserve
'
not have to be scattered
he
search,
by
is
membership,
by Walter B.
newals, extensions and single pay¬
has • appointed
an
emergency
ment loans, as well as down pay¬
fact-finding board as a. result of
ments and time limits for instal¬
a railway labor
dispute, it has
Our forces
achievements.
the
^
:
;
they, do arise, they will
take up arms and fight with us.
Let us work to make that day
come soon.
We must organize
ber
it
Association to its
(Continued from First Page)
;
tive Order and its purpose
transportation battle. There will
be many others before the war
on
the transportation front is
won. Here is where the strength
ease
be
can
Sea.
Coral
the
of
tle
States
tropics because of the
which
Inflation Stimulant
:
disputes between railways French, ABA Deputy Manager.
their employees before dis¬ The Association's condensed ver¬
just
Of-1 and
ers
Atlantic- sea-t putes have reached the stage of a
A White House
board is a battle against our •vote to strike.
transportation. The great bat¬ statement respecting the Execu¬
American
from the hevea tree by
a
lending field, is
being sent by the American Bank¬
fensive along our
than could possibly be consumed,
but rubber production is confined
with
submarine
Nazi
credit
consumer
.
More
grown
.
and the military
war
The
war.
of the
one
science.
.
portance to banks engaged in the
country, Dr. Thomas Midgley,
..
on
have been made in the regulation
in recent months that are of im¬
cedure heretofore used in the ad¬
justments of
putes.; The Order provides for the
>
.the
Revised Regulation W
i
upon
l<i speak "iare theproduction;
front, the transportation :front,
separating this vital material from
•plants; growing, plentifully in our
own
Advancing Wages Held
all three fronts'
On May 21 President Roosevelt
A condensed version of Regula¬
with the same determination to
signed an Executive Order which tion "W" as revised to May 6,
win J The three fronts of which
modifies in one respect the pro¬ -1942, containing the changes that
of
technologists who have failed to
develop ; practical
methods
of
the will. : These offensives.must
^ fail.
v
2127
immediately
after
all
a
before
matter
which
us,
is
primarily^ of
civilian spending
stream in proper balance with
the diminishing supply of civil¬
holding
the
during
the
war
calls for definite
united efforts and specific con¬
But all
trols, properly timed.
ian
goods
period.
It
meaningless
before us the
larger vision of why we are do¬
ing these things, what it is we
of these actions are
if we do not keep
are
defending, protecting, pre¬
serving, for the future—a vision
of the
kind
promise
greater hope and
that the
future holds for man¬
when
successfully
we
have
from
emerged
the
night of universal war.
black
2128
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, June 4," 1942
recognize that, it is
Supreme Court Issues Conference Bi Elects : Wire-Tapping Bill For j ! i'Df they Department of State Foundation* Assets f
authorize
Fred Kent Chairman
Ruling On Stock Tax
War Crimes Approved |/duetvToff ;^11 vmegbtiatioris ~;rwith Near
$|i/2 Billion Mark
foreign
in
Regarding
the function
.
to;
conduct
the
or
,
con-
'
several
decisions
Fred I. Kent, President of the
May 25 by the Council of New York University,
United States Supreme Court in¬ was elected on
May 20 as Chair¬
volving taxation matters, the fol¬ man of the National Industrial
lowing appeared
in
the
"Wall Conference Board for 1942-1943
handed
down
Street
on
Journal"
from its
in
its
advices
Washington bureau:
The Supreme Court
be
its market price should
on
considered in
estate
and
Governing
Conference
holders in the Maytag Co. that
the effect of the sale of their
stock
the
yesterday of the
upheld the contention of stock¬
v
by
with
Board.
held
was
the
26th
of
The
Chairman
new
officers
Body
in
annual
the
election
and
other
connection
meeting of
the Board at the Waldorf-Astoria,
New York City.
Mr. Kent suc¬
gift tax purposes.
the Board of Eastman Kodak Co.
ington and abroad.
prevent interference with the
tional
security and defense.
and
na¬
is confined to
the
Office
of
Division
Naval
admissible
in
evidence
the
Government
at
its
price
Stock
during
the
$4.56
stock
involved
the
lower
effect
v
York
ranged
question
Since
the
represented
al-
Court
the
on
in
to $4.75.
third of that
a
New
which
period
from
most
the
on
Exchange
con¬
be valued
outstanding,
held
that
market
the
price
of
selling it should be considered
in
valuing it for tax
purposes,
and the Supreme Court refused
to review this decision.
Jr., President, The Yale & Towne
Manufacturing Co.; Col. J. F.
Drake, President, Gulf Oil Corp.;
John Wyckoff Mettler, President,
Interwoven
Stocking
Co.,
and
Langbourne
M.
Williams,
Jr.,
President, Freeport Sulphur Co.
Dr. Virgil Jordan was reap¬
pointed President and Chief Ex¬
lations
of
the
activities.
Severe
prescribed
for
penalties
-
unauthorized
now
would
to
goes
remain
months
after
in
the
effect
In short, for the effective ex¬
of the functions both of
the Board and the
Officer
James
L.
of
the
end
The
tax
a
in
case
ernment
to review
which
refused
the
Gov¬
mittee
for
of
to
one
the
reported capital assets amount¬
ing to $1,073,572,367 as of the
Eight Orders Listed
end of
which
For Mobilization
serve
with
the
FDR Clarifies Dalies
officers
152
V.
recognize
corporation
this nation."
made
public
Mr.
the
stock of
become
a
worthless
000,000,
about
Mc¬
ties
exceeded its
was
sustaining
losses.
The
tended,
agreed,
assets
Improvement Co.; Willis H.
net Booth, Director, Commercial Sol¬
vents Corp.; David A.
con¬
Crawford,
and
annual
Government
it
and the lower Courts
that the
corporation
President,
Pullman,
Inc.;
C.
W.
Elec¬
Kellogg, President, Edison
tric
Institute;
Edward
F.
McGrady, Vice-President, Radio Cor¬
though control of its properties
poration of America; E. V. O'Danhad
virtually
passed
to
its
iel, Vice-President, American Cycreditors.
*
*
#
anamid
Co.;
Harry
E.
Ward,
Chairman, Irving Trust Co.; Roy
Taxes On Real Estate
B. White,
President, The Balti¬
If the purchaser of land
pays more and
Ohio R. R. Co.; and S.
real estate taxes on that land
Clay Williams,. .President, R. J.
which
had
fallen due before
remained
going
a
concern
even
.
the
purchase, he
duct
such
The
from
Federal
the
purposes,
ruled.
Court
instances
has
taxes
for
come
been
his
income
Supreme
held
the
not
may
tax
that
is
imposed
tax
such
which
the
on
in¬
Court
in
one
de¬
ven¬
dor, not on the purchaser. If the
purchaser agrees to pay the
taxes, he has assumed a con-
tractural,
The
not a
tax, burden.
which he paid *bepart of the purchase
taxes
come
a
price
of
the
land,
the
Court
held.
Reynolds Tobacco Co.
The
following will continue to
serve
on
the
Executive
Commit¬
tee, as members ex-officio, for the
ensuing year:
Louis
S.
J.
Frank
inated for
Knell
a
Nominees
has
been
nom¬
third
term as Presi¬
dent of the Wool Associates of
the
York Cotton
the
Board
Elaborating
has
ernors
the
One
Board
of
new
Gov¬
been
nominated, TinC. Figgatt. The
Exchange on
May 21 also stated:
ney
Ten
have
The
Mutual
Life
Insurance
Co.
York; David M. Goodrich,
Chairman, The B. F.v Goodrich;
R. J.
Hamilton, Secretary-Treas¬
that
the
Max
W.
Walker,
Arthur
Philip B.
Wellman.
Royce,
Murray,
Joseph
R.
Weld, and
O.
James
r
Stoehr,
B.
have been
Irwin,
James C.
Tolar, 3rd,
nominated for inspec¬
and
John
tors of election.
The
-
k
annual
election
of
the
Exchange is to be held on June
l, and the new officers will as¬
sume
office
on
June 3.
The
effort.
In
matters,
cases
the
Board
for
the
Chairman,
Eastman
de Nemours &
Kodak
Co.;
Pont, E. I. du Pont
Co.
In
the
Board
duction
Selling War Bonds
retail
war
its
3.
lation
eign
and
conduct
policy
and
our
our
of
stores
will
Service
those
war
5.
foreign nations.. In mat¬
of business judgment con¬
with providing for the
v
riod
July 1 and sell only war
stamps, it was an¬
nounced on May 25
by Benjamin
H. Namm of
Brooklyn, Chairman
of the Retailers
Advisory Com¬
mittee of the
Treasury. The war
and
saving bond quotas for all States
and
Territories is $1,000,000,000
and this intensive
-v
selling effort is
cordingly, if occasions arise in
proposed action of the
the
Secretary
reach
a
matters
7. A
labor
;
;
The
Board
continue
to
•
in
of
order
Farm
to
in-
mobile
to
make
8.
•
</
;
/.
A directive to the Office of
Transportation and the
'
Farm
to
Security
assure
Administration
adequate transporta¬
facilities
to
move
agricultural workers.
migrant
11
the end
of
same.
comparative
a
an¬
portfolios.
Industrial Management—
Columbia Summer Course
14
weeks'
business
and
Session
mer
program of com-in
industrial
instruction:
management
pro¬
given in the Sum¬
of
Columbia
Uni¬
versity, it is announced by Robert
Calkins, Dean of the School of
D.
Business
course
ness
is
;
and
cedures will be
the
number
camps
Defense
tion
will
agricul¬
v'
.
to
tory" objective. '::.y
ters of sufficient
taining
•
available workers in agriculture
to achieve the "food for vic-
and
President.
*
Administration
the
crease
necessary
additional
directive
Security
•
es¬
joint decision, in mat¬
importance ob¬
direction
from
the
provide
facilities
tural workers.
thought
foreign
of State
and
Of these
at
alysis of foundation investment
"-A
and the Chairman of the Board
such
-I
assets
The
grants
the
war
and
survey also contains d
classified listing of foundation
.
em-
•
these
among
1937, and four remain the
bined
•to
sential considerations of
discuss
critical
a
1937.
1934
tivities
by officials of the State Depart¬
policy,
selling campaign.
its officers is
ment to be at variance with
will
secure
public
in
1940 greater than at the end of
6. A directive to the Employ¬
ment Service to increase its ac¬
which
planned to have the Governor of
each State
speak over the radio
vidual skilled in
occupation.
.
designed to help it reach the goal.
to the
selling period it is
Prior
local
the
of
—
reported
a
^
policy and business judgment in
varying degrees.
No clear-cut
separation is here possible. Ac¬
or
in
foundations
in
skills in
located
foundations
large
the 34
with more than $5,000,000—also
provided figures on their capital
instruct all
to
boards
reporting
Twenty-eight
to
System
largest
foundations
ployment office before classify¬
ing/ or reclassifying an indi-
In many cases a. decision may
Board
Selective
community served by the Em¬
involve both matters of foreign
on
bonds
162
interview
with
34
1940.
A directive to the Selective
of
City of Philadel¬
The Kresge
$57,510,347;
The
$93,420,389;
assets
amounting
to
87.9% of the total capital of the
occupations, and to
job openings in
production work.
advice
had capital assets
than $5,000,000 each at
the end of 1940. These include;
Board
of
Directors
of
City
more
showed
war
local
also
of
The
Employ¬
to
ployment Service to
into
suspend the sale of their regular
merchandise for a 15-minute pe¬
their
the
individuals
them
Service
its
by
System,
critical
refer
for¬
tion of the Board.,
of
occupational questionnaires
distributed
will
re¬
Foundation, approximately
$45,000,000
and
the
General
Education
Board,
$40,684,023.
pro¬
diately to analyze and classify
the
.for
capital
Fund, $51,218,551; W. K. Kellogg Foundation,
$46,574,168,
Charles
Hayden
to
war
A directive to the
$165,518,578
accounts
total
Commonwealth
ment Service to proceed imme-
country for the war effort,
including civilian supply, < the
Department will recognize the
primary responsibility and posi¬
workers
order
Foundation
Thirty-two other foun¬
phia,
priority before making referrals
employers. -S:
4.
the
Trusts of the
to other
relations
be imported
of
the
cases
dations
,/
Employ¬
make prefer¬
to
all
in
ported;
classify war
products in the
urgency in the
referrals
in
of
and
—
Foundation,
Service
duction
cerned
to
31.2%
designated
employers engaged in
the
of
—$169,416,504
A directive to the
ential
these
officers
their
Rockefeller
•/respectively
program.
ment
this
Retail Stores To Aid
nation's
order' of
decisions
recognize
of
to
war
assets
assets, with the Carnegie Corp¬
oration in second place.
The
capital of these two foundations
occupations.
Board
plants and
pri¬
mary
responsibility and posi¬
tion, under the President, of the
Secretary of State in the formu¬
materials
————
The
and
to
of
war
The
is the largest foundation
among
those
reporting
their
capital
to
2. A directive to the War Pro¬
7, page 1783.
making
critical
as
fig¬
sur¬
buildings
and equipment used by the
re?
porting foundations.
shortage exists. Such
be
The 1934
from the earlier
are
The
production in which
occupations will
that
President's statement
May 21 follows, in part:
list
a
of
exclusive of land,
are
the United
and maintain
war
national
a
production and procurement of
—
In
in
tial to
assets
123 foundations listed at
Fund.
policies
Service
with
by the Twentieth Century
vey
those skilled occupations essen-
both
The
the
and Irenee du
mentioned
were
ures
reported in
directive to
war
said
was
Employment
prepare
i
import
involving
President
columns May
continue
Corp.; John Henry
of
&
nominating
committee
to the retail stores
and to stage
of Clayton B.
Jones,
Chairman, Arthur J. Pertsch, rallies throughout the country to
Charles B. Vose, John E.
Smith, arouse the enthusiasm for the
Eugene Bascho.
needed
;
Secretary of State Hull and VicePresident Wallace, who is head of
Hammond,
Dorr
consisted
and
1. A
States
Department and that the
BEW's primary
responsibility has
to
do with matters of business
materials
as
to
1937, and of $701,676,268 for 88
of the
setting
chairman's
total
121
the end of 1934.
The following is the first set of
these directives:
State
of
order
the
of the 243
foundations listed at the end of
issue of April 23, page 1631.
our
formulat¬
the
the
to
and directives
ing and conducting the country's
foreign policy and relations with
foreign nations rests with the
judgment concerning
executive
Associates
$945,443,637 for
the
form
re¬
reasserted
for
his
bringing
$1,400,000,000.
Rich
Commission,
President
Roosevelt on April 18 designated
several Federal agencies to con¬
recent press con¬
authority
urer, American Radiator & Stand¬
ard Sanitary
been
renominated,
these being E. Malcolm
Deacon.
Joseph P. Draper, Lawrence P.
V.'- Hills,
Marland C. Hobbs, H.
Clyde Moore, Robert J.
his informal
In
up
Dodge
present members of the
board
a
ference, the President
ters
Treasurer.
for
on
marks made at
inated
for
Warfare
and to provide for
cooperative ac¬
with
member
Economic
7
tion between theim
Hines,
Rearick,
Hammond;
Edgar
M.
Exchange, Inc.
Bernard J. Conlin and
Queeny, President, Monsanto
Stanley H.
Lawton have been nominated
Chemical Co.; Robert C. Stanley,
for
First Vice President and
Second Chairman and President, Interna¬
tional Nickel
Vice President,
Company of Can¬
respectively, and
William J. Jung has been nom¬ ada,
Ltd.; Frank W. Lovejoy,
New
of
Department and
Cates,
President, the
BEW, will work out a joint de¬
Corp.; Arthur M. cision.
Mr. Roosevelt added that
Collens, President, Phoenix Mu¬
it is essential that there be "com¬
tual
Life
Insurance
Co.; F. C.
plete
exchange of information,
Crawford, President, Thompson
mutual consultation and mutual
Products, Inc.; C. Donald Dallas,
confidence."
President,
Revere
Copper
&
Mr.
Roosevelt's
previous
re¬
Brass, Inc.; J. F. Deasy, VicePresident, The Pennsylvania R. R. marks in the matter as to jurisdic¬
tion of the Department and the
Co.; Lewis W. Douglas, President,
Phelps
of New
Wool Assoc.
tions of the State
make
The reported figure of $1,•V 073,572,367 is contrasted by the
of
even
Gas
other
not
information indicates
that they aggregate some $350,-
Clifford S. Anderson, General
are to follow to facilitate the most
President Roosevelt on
May 21
Counsel, Norton Co.; William W. issued a statement designed to I effective mobilization of the boun¬
though the corporation's liabili¬ Bodine,
President, The United clarify certain relations and func¬ ty's manpower.
that
had
the
did
available
man¬
outline
an
Although
foundations
public the extent of their assets,
eight directives, effective June 1,
to
various
government agencies
prescribing the basic policies they
Of Slate Depl, D REW
year:
to
Nutt
1940, the latest year for
complete figures are ob-
tainable.
:/
six
the
were
elected
Executive Com¬
Raymond
One hundred and sixty-two
foundations of the 314 surveyed,
are
Paul
Century
survey, the
from
;
i
■
Senate,
Regarding the
Rich Associates states:
Madden,
following
Twentieth
ception of any project there be
complete exchange of informa¬
tion, mutual consultation and
mutual confidence.
i
members
the
announcement
uses
until
by
Fund.
power of
The Court refused
cally
Department,
it is essential that froni the in¬
of the
extensive revi¬
an
sion of a similar survey of 243
foundations published in 1939, and
earlier
editions
issued
periodi¬
McNutt, Chairman of
war
the
Board.
the War Manpower Commission,
or until such earlier time as Con¬
Third Vicegress, by concurrent resolution,, or announced May 22 an eight-point
President, Metropolitan Life In¬ the
program designed to "promote the
President, might designate.
surance
Co., was elected Treas¬
fullest
utilization
of
ecutive
urer.
Refuses Tax Case Review
family trusts is
discharge its responsi¬
ercise
might be ob¬
by wire tapping. The bill,
which
consultants to foundations
other non-profit institutions.
survey,
embracing reports
from 314 leading foundations and
bilities.
of the evidence that
tained
York,
and
quately
requiring the
registration of foreign agents and
organizations carrying on foreign
a
published on May 24 by
Raymond Rich Associates of New
makes
acts
grown to more
$1,400,000,000, according to
report
President's
order that the latter may ade¬
stockholders, having Vice-Chairmen of the Conference tion obtained by wire tapping in
large
blocks of the Board, elected for one year, were: cases involving
treason, sabotage,
stock by gift and
inheritance,
Neal
seditious
Dow
conspiracy,
Becker, President, espionage,
valued
it at $2.50
per
share, Intertype Corpl; W. Gibson Carey, violations of neutrality laws, Vio¬
tended that it should
the
than
ac¬
representaitves of the Board in
and
received
while
with
make grants have
commodi¬
import in
capital assets of indepen¬
American foundations that
The
informa¬
Certain
for
cessity for the participation of
Intelligence.
Specifically, the resolution
The
dent
Executive Order, the State De¬
partment will recognize the ne¬
restricts wire tapping to the Fed¬
eral Bureau of
Investigation, the
Intelligence
intended
cordance
crimes; it
war
procurement of
ties
The
legislation, in the form of a reso¬
lution, is strictly a war measure
and
Wash¬
In negotia-
tions relating to the production
/
thorizing wire tapping in order to
Army
valuing it for ceeds F. W. Lovejoy, Chairman of
governments
The House by a voice vote
ap¬
proved on May 26 legislation au¬
is
and
at
the
University.
The
designed for both busi¬
engineering students
intended
to
meet
the
and
shortage
of trained personnel in the busi¬
ness-industrial management field.
The
faculty of the School of En¬
gineering and the School of Busi¬
have cooperated in the or¬
ganization of the program which
ness
began
12.
on
June
.
1
and
■.
ends
Sept.
Volume 155
From
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4078
Patent
Washington
which
Infringement
Even
for
to * his V;
of
one
the
Hoover's- nominees
Supreme
Court
The
re¬
was
Unquestionably- the Sen¬
ate was motivated
a% times by
purely devilish considerations, or
of for
was.
oral official
in a,
ators of that
particular state
state, or in the event
Senators
being of the mi¬
nority party, of the state leaders.
because he and these
Senators were not seeing eye to
eye, the chances were 99 out of
100, that they could block the
control
of
the
took
Paris.
got
coun¬
for
the
cerning
of
Belgians
sent
such
for
The
German
-
was
alleged,
instead
of
fell, the gold, it
exiled
the
gian Government.
and
handed
to
over
the
new
function
results,"
the Bank
with
Bank
serve
A
largess at its disposal, it went di¬
rectly to the Mayors :and the
legal
French
-
of
France, and
the
Federal
in New York
battle
ensued,
maintaining that
New York courts lacked the
of
officeholders. Formerly these
Mayors and Governors had been
ther
Senators.
as a
have their
the
of
di¬
to
the
was not
Belgian bank after the Germans
which
The
with
New
still
plays ball
sufficient number of Sena¬
a
to
tors
Deal
there
give
in
them
majority
a
matter
the
of
con¬
firming
appointees
which
re¬
quire Senate confirmation.
But
these appointees are almost neg¬
ligible in the army of $5,000 to
$10,000 a year jobs that are being
created every day.
The Senate
has sopght unsuccessfully to bring
some of these juicy plums under
its thumb, by providing that all
appointees to gobs calling for cer¬
tain-salaiies;must be^ confirmed;
In most instances it has
the jealousy
the
was
case
into
run
of the House.
This
Henderson's
when
agency was first authorized.
of his henchmen.
appointment
Department
sent it
which
about
President didn't
own
Here is
even
of
an
the
consult
his
Justice, just
to the Senate at
behest.
Hague's
The accepted report here
is
the
on
that
President
is
sore
at
Governor Edison, who is fighting
the
appointment,
because
the
Governor
been
is
flirting
supposed
with
the
Democrats.
to
have
Willkie
buy
the
limit
a
decision
that
the
a
War
Bonds
population,
nounced
from
to
seems
have
an
interminable
that
grant it would de¬
ex¬
John
Chairman of the
Greater
New
York
Administrative
the
on
of
Mr.
Bond
Madden,
Vice-President
Manufacturers
leave
War
Trust
absence
to
Co.,
do
of
is
this
urgent job.
Mr. Madden said that the frame¬
work of the huge organization has
boroughs.
Eugene C. Donovan, President
of
the New York
State
Bankers
on May 25 that the
American peo¬
ple have the right to expect many
least
2,000,000
families will be called upon dur¬
ing a ten-day period from June
14
to
24.
Each
family will be
sign a pledge to buy War
Bonds and Stamps regularly, in
line with the Treasury Depart¬
ment's national objective.
asked to
sult:
will win the war,
we
will
keep
faith
and
the
with
boys at the front.
an
op¬
Mem¬
commitees
are
Canada
and
United
the
States
the
potential threat of
their country's being annexed to
the United States."
It finds, how¬
"a decided change in
public sentiment" has
that
ever,
Canadian
occurred
in
cording to
months
recent
"ac¬
observers who note
a
marked tendency among
Canadians
to
thinking
if not wel¬
accept,
the
thesis of hemisphere
unity, and its implications for the
future."
Continuing
the Board
come,
more
discussed
the
frankly
are
explored today
prepared both coun-
be
will
future
multitudinous
and
better
tries
the
involved
problems
:
■
,
The
meet
to
promptly
contingencies
they
as
arise.
Meanwhile the
to the
"main obstacles
merging of the
efforts
war
of Canada and the United States"
found
to
be
"tariffs,
trade
regulations, red tape, and foreign
exchange problems.
One of the
concerns today
is how to
chief
overcome
these
the
time
same
and
obstacles
retain
intact
at
the
traditional political independence
and economic individuality
of the
two countries."
Congress Votes Increase
May Cotton Sales
In War Risk Ins. Fund
passed unanimously
The
21, and the Senate on
May 28, a resolution appropriat¬
ration
The House
May
their
ready and willing acceptance
of denial.
They have the right to
expect, Mr. Donovan said, that no
unnecessary
placed
upon
burdens
them,
will
and
he
be
con¬
tinued:
They have the right to expect
that the promises of Govern¬
Commodity Credit Corpo¬
announces
in
1940.
July,
disclosed in the report of
was
the
House
Appropriations
"A total of
Com¬
mittee that "at the rate losses are
be liable for a little more than a
grams, bringing the total quantity
day, and on the basis of sold during the month to 195,105
estimated claims payments it will bales.
ship
a
000
$20,000,"Since Jan. 1, 1942, total sales
funds under the various programs of the
premium receipts CCC, exclusive of the Lend-Lease
approximately
average
appropriated
month over
obligations." The re¬ and
relief programs, have amount¬
port also showed that between
ed to 1,322,364 bales as follows:
Dec. 31, 1941 and May 1, 1942, in¬
per
to meet the
surance
coverage
increased
from
General Cotton Sales
$14,000,000 to $883,000,000. It was
estimated by Rep. Cannon (Dem.,
Mo.) head of the Appropriations
Committee, that the $210,000,000
Program
nothing less.
They have the
right to expect that Government
will practice its preachments of
economy,
and they have the
right to expect that at the end
of
this
struggle
those
things
1,099,133
195,381
—
_
for
Sales
Export
Sales for New Uses^_
27,850
appropriation, together with funds
now
on
hand
and
current
1,322,364
pre¬
"There remains
ply requirements for from eight
months
to
one
year.
He
also during
as
69,864 bales had been
sold previously in May under the
new uses and sales for export pro¬
selves
and
bales. The announcement
588,050
stated:
miums, will be sufficient to sup¬
statesmen
were
During
of the measure
discussion
it
resentatives will conduct them¬
as
that offers
accepted on May 26 for the pur¬
ing $210,000,000 for the purpose of chase of 125,241 bales of cotton
increasing the marine and war- under the General Cotton Sales
risk insurance fund of the War Program at prices averaging 71
Shipping Administration. This ap¬ points on October New York fu¬
tures for middling 15/16 inch cot¬
propriation is needed to augment
mill - points.
the original fund of $40,000,000 ton at Carolina B
Bids were received on a total of
things from Government, indus¬
try,. labor and banking in view of require
Greater New York War
ment will be kept, that politics
will be adjourned for the duraPledge Campaign, a total of
7,500,000 people must be reached, X tion and that their elected rep¬
at
pectations
of
the
people
of
America today. If they are real¬
ized there can be only one re¬
we
these
increases
We
the rights and ex¬
are
of
says:
Association, told the bankers' an¬
nual meeting in New: York City occurring the fund is estimated to
In this
means
of
are
These
have
Canadians," the Board
reports, "fear that the constantly
approaching economic integration
shall
things
communities.
own
committees
full time research staffs.
a
House
Bond
which
we
these
have
with post-war problems.
\^Many
are
cooperate
provided
an¬
T.
Madden,
U. S. Treasury's
Pledge Campaign.
Peoples' Sacrifices
entire
recently
was
by
re¬
towns and cities.
on
self-perpetuation"
pected from the patent laws.
every
the
the
in controlling
credit, but we must not be
scared nor stampeded into liq¬
uidating
our
villages
and
Justice Black said the
patent
"one
of
a
group which
family in Greater New York for
of
our
must
exclusive
enjoy¬
major instrument of
prive the public of benefits
pledge for the systematic purchase
that
all
the
high ranking Government offi¬
cials who have the assistance pf
more;
respecting at the
time the legitimate needs
same
the
of
do
Joint
of
dously, the Board finds.
bers
war.
expect
to
the
was
machinery for enlisting
training 200,000 Minute Men
upon
to
—
manufacturers who
to
and
patent
massive
call
bonds
resources
American people have
right
the
the
and
to
their
our
The
patented
to
Women
and
improve¬
and
and
of
which, I might say, do
belong to us but to the peo¬
ple of America. They have the
right to expect us to do our
share in financing our farmers
a
for
the purpose of securing a written
Government
not
by
production which rightfully be¬
longs to the public."
motion the
It will be
one
the
capacity
have put into
now
been completed and while
interesting, in view there are still many serious prob¬
of Congress' belated recognition lems
ahead
and
a
tremendous
of the fix it is in, to see if the amount of work to be
done, the
Senate
confirms
Frank
Hague's preliminary plans are now already
offering for the Federal judiciary, beginning to function in all five
•
of
of
petuate
than 200 key men and
more
groups.
us, too, they expect the
acceptance of responsibility for
financing the war.
They have
the right to expect the banks to
by
any
of
Committees
portunity to advance Canadian-
being made.
Banking System,
other
The Board adds:
■United States relations tremen-
production
with
do
These
are
From
minority de¬
technique of
United was "an attempt to util¬
ize minor improvements to
per¬
Completed For NY
Bond Pledge Campaign
women
operation
continue
clared
Plans
to
like us, the American
men
of
but embrace matters that
The
sources
of
separately,
the pro¬
in his particular com¬
munity, he will find the President
The results of six weeks' plan¬
fully advised and quite likely,
and
organization^ during
differently from the Congress¬ ning
man's report.
the
the
to
coordination
functions
Economic
Mr. Donovan further stated:
ment
conditions
that
produce
covered
ments could have been
give this information to ceedings appeared in our issue of
the President. Now if one of them Feb. 6, 1941, page 917.
should by chance get an audience
tell the President about the
had
to
Asserting
given back to the
Used to
and
from
monopoly
by perpetuating rights in old
inventions beyond the 17
years
Congress has provided."
went into France.
Congress
From
items.
war
The
it the credit for
astounding
records which
possible
programs
and
rea¬
men.
producing for
important to discuss," the
gold
Previous reference to
the
nate jumbling of the new and
the old which would permit the
inventor
of
improvements to
extend his domain of
Supreme
here
com¬
today goes to
patent system was
in¬
tended ,to allow the indiscrimL
which it is not
reasons
sup¬
"our
Court, the Bank of Frence held
and
responsibility for that leader¬
ship rests with labor, as even
complete ma¬
chine seeking the new patents.
They
disclaimed
belief
that
decision.
brief
a
that "for
Government "Reports"—to inform
them of the moods, the goings-on,
Members
did
honest
war
two countries are, however, not
confined to wartime problems
confidence of
and
the
countries
type
a
description
au¬
Supreme Court has declined
In
nationwide agency
—that of Lowell Mellett's office of
munities.
banks
of
ty objected to combining the decription of improvements with
in the State.
to review the
.
own
the conditions in the various
two.
sonable
Black-Douglas-Murphy minori¬
New
in
putting their own men in the
state directorships of the count¬
less bureaus with which they lit¬
tered the country. Now they even
the
should be
merit the
to
Supreme Court Justice
Bradley,
69
years
ago,
the
This plea was rejected in the
York tribunals, and now
starter,
the New Deal then succeeded
of
rect business
the
labor
of
two
production, with re¬
gional specialization and mutual
exchange of both raw materials
united
our
lead
the
industrial
affairs, but those
same
intelligent people expect,
and rightly so, that those who
former
thority to try cases involving
foreign corporations, and nei¬
beholdened
it
Referring
City.
the
the
Governors with their little armies
if
improvements
patent claims.
Re¬
own
stronger voice in the conduct
a
of
majority
refused the Williams
Company
the right to use a heel
lasting
on
greatest
its
that labor will and should have
the
deposit
-'New Deal. ' With this
con¬
lasting
merely
and
new
machine
selfish
for
advantage. The intelligent peo¬
ple of America agree, I think,
elements, which perform
no
Ger¬
gains
its
use
wholehearted support and intel¬
ligent, liberal and sincere co¬
no
mans,
unification
of
not
people have the right to expect
"are
was
shipped by plane to Marseilles,
sphere. Everything, says the Board,
now points to a
constantly nearing
newly
will
forthcoming,
a
Conference Board report on Can¬
ada's role in the American Hemi¬
it
contention
a
Bel¬
Later it
American
profound and permanent char¬
that
and
combinations
of old
sent to Dakar
was
to
the
little while ago.
From
Labor
the
improved result."
an
Rejecting
When France
date these expectations
won
majority, however,
produce
acter, according to
To
people have the right to expect
they involve
old
me¬
chanical constructions, combine
these in a new way so as to
1940, just
a
a
in
combination
devices"
emergency lasts for
States may have consequences of
from industry are being realized
on a scale few thought
possible
while
armistice.
the
to
old
war
its.
May 25
heel
broad
a
the
length of time, the new-found
try to forego large private prof¬
ported the lower courts in hold¬
ing that the "new combinations,
rehabilitation
The New Deal has by-passed all
of this.
Through the tremendous
-their
"Times"
If
any
bases of economic cooperation be¬
tween
Canada
and
the
United
may
unpatentable mechanisms with
old mechanical combinations."
two
refused in June,
before
the
Franco
on
beholdened
automatic
repatent
•
to
to
York
productive facilities
yield to the fullest extent
our
the instruments of victory. They
machines, were invalid because
"they constituted attempts to
Germans
Government.
became
New
the ground that the claims
gold
the for¬
mulation of administrative policy.
They were a definite part of the
They
the
Canada Seen Permanent
have the right to expect indus¬
Defeated in lower courts, the
Williams Company appealed on
the Belgians maintained.
Subsequently
the
two
liti¬
gants obtained
an
attachment
against $749,000,000 belonging
majority party sat in
that
by the
the
post¬
of
this
was
Congress, y the more
to a Senator, those
Members
Close Relation of U. S.
'
ment and with labor to the end
merely
"embodied aggregations of new
request
ones
branch.
used
advices from Washington
said:
tween
November,
1939,
and
May, 1940. There was, they con¬
tend, an understanding that the
metal would be returned, but a
masters, ; etc., to a Congressman.
^This -resulted iu: -theWhiteVHouse
having to keep in close touch with
Congress, in its having to work in
close cooperation with the legis¬
lative
over
The
That is
as
machines
gold to Paris for safekeeping,
against German invasion, be¬
to say the federal appointees owed
their appointments to some one
importance such
in
when
Under this system, we had more
or
less 531 little political groups
of lesser
States
that
sions
the
stitution
own
;
of
May 25 the
Supreme
Court
on
Ohio
Belgian bank had
deposit with the French in¬
on
T940.;x:r-<
important
gold
compensate
which
It was; in
this way that it blocked any am¬
bitions for a third term up until
member
to
try
into the White House.
throughout the country.
French
the
purse
strings, that Congress held its
against- ambitious men who
United
assignees, Daniel de Gorter and
Henri
Wild, sought to attach
appointee's confirmation.
It was in this way/ together
its
6-3 decision
a
Williams
writ
a
February, 1941, attaching $200,-
the U. S. Supreme Court's refusal
to review the case, said in part:
The lawsuit arose when the
If he did,
with
taken, away
*
Industry the American
people have the right to expect
full cooperation with Govern¬
Manufacturing Co. of
infringed patent claims of
000,000; of gold of the Bank of the United Shoe
Machinery Co.:
France, held .in New York. The of Boston. The majority decision
writ was issued to representatives was led
by Justice Roberts; the
of the exiled Belgian Government.
dissenting Justices were Justices
Washington advices May 25 to Black, Douglas and
Murphy. Re¬
the New York "Times," reporting
porting the High Court's conclu¬
without the approval of the Sen¬
of the
on
In
Supreme Court in issuing
fed-
a
name
Supreme
May 26 declined to re¬
ruled
in
almost unheard
President to
a
States
view the action of the New York
the desire to let it be known who
boss.. It
United
Court
jected.
was
been
From
'cabinet.
own
have
will be returned.
-^(Continued from First Page)
poiritment
2129
that the premiums
charged for this insurance are as
high as the traffic will bear and
that any higher rates will drive
shipping from the seas.
pointed
out
bales
of
within
bales
of
cotton
the
the
a
total of
that
calendar
limitation
177,636
be sold
may
year
of
specified in section 381
the
Act of
Agricultural
1942
1,500,000
(c)
Adjustment
1938, as amended."
THE COMMERCIAL & FINANCIAL CHRONICLE
;
2130
AEF Will Land In
)
r
Gen. George C.
.
Marshall, Army
Chief of Staff, declared on May 29
that American soldiers "will land
France"
in
official
thus
the first
giving
intimation
that
inva¬
an
sion of
Europe is planned. Speak¬
ing before the graduating class of
the United States Military Acad¬
War
is
clear
with
to
tional banks in the United
to
and
the
a
Marshall
Today
;'.j
;
in
cently they struck at Tokyo.
They have wintered in Green¬
land
and
Iceland.
They are
landing in Northern Ireland and
when $1,000,000,000 will be
minimum
England, and they will lend in
France.
We
before the
rible
determined that
are
sets
sun
this ter¬
on
flag will be
recognized throughout the world
...
as
the
on
hand and of overwhelming
force
has
the other.
on
The
state of the
public mind
Many of those
changed.
who
■
our
symbol of freedom
a
one
„
struggle
to
come
to what
conclusion
clear
a
have
confusion
in
were
as
people,
solidly behind the Army, are
supporting wholeheartedly ev¬
ery measure fo rthe prosecution
of the
war.
the tremendous
growth of the military establish¬
on
Gen.
Marshall
revealed
that' during the past four weeks
ment,
the
Army has been increased by
300,000 men and that by the end
of the year will total nearly 4,500,000 men. (Previous War De¬
partment estimates had placed the
in
total
the
ranks
the
by
year-
3,600,000 men.)
Most of
expansion, he added, is taking
place in the air forces.
Gen.
Marshall
address
also said:
In a few days you will find
yourselves among thousands of
young
officers who have re¬
cently
in
their
won
commissions
arduous
an
and
rigorous
competition unique in the an¬
nals of
Army.
our
$
*
Already
with
they
the
familiar
are
and
of
large masses of
men.
Many of them have par¬
ticipated in manoeuvres which
extended
months
of
over
and
period
a
involved
of
hundreds
thousands
ing
of troops operat¬
tremendous areas, cov¬
over
ering in
one
instance
entire
an
State.
In other words, you will
be in fast company; you are to
join
virile,
forces.
highly
developed
You will meet the citi¬
zen-soldiers of America at their
best
and,
by
you
will
have
hard to
the
justify
token,
same
to
work
your
very
heritage.
the
Federal
Reserve
Bank of
Philadelphia, died on
May 13 at his home in Gwynedd
Valley, Pa. A native of San Fran¬
cisco Mr. Norris was educated
a
lawyer and practiced for
as
years
before entering the banking busi¬
ness.
He was appointed a Direc¬
tor
of
the
Reserve
was
Philadelphia
Bank
the
system
organized in 1914 and became
Vice-Chairman
1916.
of-the
Mr. Norris
ernor
and
when
Federal
was
in
made Gov¬
of the Reserve Bank in 1920
served
pointment
until
as
Bank in 1936
Board
of
1936.
was
was
of
ganize
the
system
and
sioner from
community
and
hundreds
a
minimum
Federal
tire national
through
1916-20.
corporate
new
thousands
10%
.corporate
en¬
income, principally
payroll
savings
the
under
which
keted,
stated
a
from
amount
their
found
of
Expects
The basic gasoline rationing for
will bring the greatest
influx in
history of nearby vaca¬
tionists
to
New York
City this
summer
in
the
opinion of the
Commerce and Industry Associa¬
tion of New
York, Inc., which on
May 18 made public a survey
showing that 18,104,500 people, or
of the total population of
States,
live
of
radius
lower
of Manhattan Island.
ciation
points
circumstances
within
the
The Asso¬
that
out
have
a
tip
existing
thou¬
caused
sands, who had hoped for vaca¬
tion trips to far-away places, to
shift their plans and, after a fam¬
ily discussion, it is considered that
great numbers of them will choose
the
ried
Metropolis because of its
of
means
the easy
entertainment
va¬
and
accessibility of its famous
beaches.
As the needs of
ness
get
and busi¬
war
wil have first call
carriers
and
what's
the
on
public
will
vacationists
the Association
believes educational campaigns by
left,
of
and
Commerce
playing
ful in
nearer
home will be help¬
aiding the
The
effort.
war
Federal Government is aiming to
discourage long distance vacation
travel on trains and buses, but en¬
courages recreation if it does not
interfere with the
war
effort. The
Association also states:
Under
the
rationing
gasoline
"A"
card
existing
scheme,
holders must restrict their
mer
vacation
of not
this
trips to a radius
than 100 miles. Even
more
will entail
in the
garage
the
sum¬
leaving the car
for a period prior
planned
a
jaunt
pleasure
sufficient sup-
p ply of fuel.
; v
Except for short trips within
a
radius/
determined
amount of gas
or¬
state
Loan
tions
of
by
seemed
tion.
one's
the
by
available and the
tires, long vaca¬
private
doomed
motor
for
the
-
cars
dura¬
disclosed;
posed legislation
Americans
net profits before
the
year
1941
for
more
was
quarter
ities,
bond
and
of
interest
savings deposits,
Public utility issues comprised
Profits
;on
a
$49,000,000 of March flotations,
chiefly by one
$32,500,000 Pennsylvania
Industrial
companies
marketed $47,000,000 of secur¬
ities, while the remainder of
corporate issues was made up of
It should
and
134,000
"vvere
Dividends
obliga¬
and
mon
net
proceeds
raised from corporate flotations,
new money purposes was to ab¬
sorb
$39,000,000
(the
same
amount
as
shown
was
in
and
declared
retirement
of
preferred stock was $61,000,000,
or
approximately
threefifths of total net proceeds. This
tal
and
bonds.
par
with
preferred stock issues.
The issue
was
offered
refund
indorsement
of
letter to Representa¬
a
Bloom
on
the
that
be
ground
served
by
reserving for the ex-r
elusive
use
of the medical services
were
and preferred
4.05%
of capital
the
of
9.73%
common
and Navy
The: twelfth of
a
along
have by
treaty undertaken to protect."
Total dividends paid out by
were
these
$16,000,000
in
the
While
number
of
owner-
occupied homes in non-farm areas
rose from 10,678,504 in 1930 to 11,1940, home ownership
keep pace with the in¬
in
413,461
did
not
in
crease
the
families,
according
to
issue of the / Federal
Loan Bank Review.
The
May
Home
article states:
"In 1930, 46 out of every 100
non-farm families owned their
Securities
at
we
Drop In Home Ownership
hew series of
made
which
other governments,
with
industry reports of the Survey of
American Listed Corporations was
and the
organizations an em-r
which has been chosen as
blem
funds.
Army
best
can
Cross
Red
capi¬
good
their symbol and
enterprises
and
in
5.4% of net worth at book value.
and the proceeds, together
surplus cash, were used to
his
indicated
tive
SEC Reports On Smaller
Iron and Steel Companies
the
needy
of the world.
earnestly commend the
$147,970,000,
Exchange Act of
1934 at Dec. 31, 1940. The com¬
bined sales reported by the group
Texas Joint Land Bank
were
$529,000,000 in 1940 comnared with $408,000,000 in 1939.
Bonds Offered At Par
Net
profits
after
all
charges
Kidder Peabody & Co. in May totalled
$37,000,000 in 1940 against
offered at par, an issue of $350,000
$21,000,000 in 1939, equivalent to
First
Texas
Joint
Stock
Land 7% and 5.2% of sales, or 8.8% and
Bank of Houston, 1%% farm loan
of
the
"the
1940. The dividends
common
and
in
comparison with $145,273,000-in
of
possible humanitarian
pending legislation to the favor¬
able action of the Congress.
>
Secretary of State Hull on May
23
com¬
all
stock
preferred
public by the Securities and
Exchange Commission on May 20.
covers.: 50
corporations,, with
amount included $41,000,000 for It
assets of under $100,000,000 each,
the retirement of funded debt.
$15,000,000 for the payment of engaged primarily in the produc¬
tion of iron and steel and which
other debt (chiefly bank loans)
securities
registered under
and $5,000,000 for the retire¬ had
ment
'
the bill in
on
by
to the sick and wounded
armies
I most
less
recognized
distressed peoples
:
Feb¬
ruary), with plant and- equip¬
ment accounting for $35,000,000
and additions to working capi¬
tal, $4,000,000. The amount of
money allocated to repayment
indebtedness
of
$92,-
$15,826,000
totaled
1941
estimated
Of
totaling
be the declared
the symbol necessary
as
make
to
succor
1941
now
be
to
come
nations
$19,-
than in the year before.
tions.
of
for
spirit of the Treaty of
policy of this Government to
give
adequate
and
complete
protection to an emblem which,
increasingly over the years, has
i/
curities
them
give
Geneva.
preceding year, and losses and
depreciation on bonds and se¬
Electric Co. first mortgage 3%s,
the
also
ing 1941 aggregating $79,983,000
were $25,068,000 less than in the
for
to
on
sol¬
our
comfort and protection
within not only the letter but
securities sold dur¬
on
obligation
is
every
decrease of
increase t>f
an
It
emn
secur¬
time
in
faces the
and wounded
be—sick
battlefront.
our
erating expenses were $272,057,000 for salaries and wages of
officers and employees, an in¬
crease of $16,758,000 over 1940;
$99,199,000
expended
in
the
form
legislation
There are—there
preservation.
will
of $7,891,000
The principal op¬
year.
of
should
greatest challenge.
Millions of
its citizens are serving for its
increase
an
the
in
bonds
exercise
powers
remedial
of
age
principal items of cur¬
operating earnings
for 1941 were $457,466,000 from
interest and discount on loans,
an
increase of $45,822,000; and
$291,984,000 from interest and
on
to
preceded
use
the public interest.
This country today
gross
dividends
prohibitive
aid
not stand as a bar to the pass¬
re¬
The
rent
privately
railroad
an
those
and
extending
Government's
this
its
$27,830,-
than the amount
armies
of
in
That such
them.
ported for 1940.
taxes,
030,000.
of
use
caring for the sick and
engaged
and
in
$6,000,000
a
for prir
created
wounded
$6,371,000, and $85,134,000 paid
1972.
almost
seems
any person
material benefit to
vate
emblem
$269,295,000, which
17.70% of the par value of
This
compares
with
during the last four
ranging from 28 to 35%.
due
it
sacrilege for
ments
the
placed.
issue:
After
necessary.
relating the history of the organi¬
zation, Mr. Roosevelt said:
To
great numbers of loyal
pre¬
averages
accounted
American Na¬
strongly that
wartime conditions make the pro¬
by interna¬
tional agreement solely for hu¬
mane
purposes and as a pro¬
tective mark for the establish¬
000
in number), approxi¬
mately one-fourth of corporate
bonds have been privately
years
and
Department
tional Red Cross feel
the net operating
on
securities
$79,983,000 and recov¬
eries on loans and investments,
etc., previously charged off of
dividends for 1941
been few
?
clared that the Army, Navy, State
preferred stock
and 7.37% of capital funds. This
figure
of
net
profits before
flota¬
corporate
der
more
Cross convention of 1929 and de¬
expenses
profits
common
placed. Excluding issues sold by
competitive bidding directly to
ultimate investors (which have
Influx Of Vacationists
United
all
issues that have been
bill
effectively imple¬
ment the provisions of the Red
of
was
far in 1942 in the per¬
so
centage
13.7%
any
the
indorsed
signed to
amounted to
since the first quarter of 1939.
A moderate decline has been
earnings every payday.
New York City
less than
or
Chairman of the House
Affairs Committee,, the
President
■
year.
dividends
amounted to $102,000,000,
comparing with $78,000,000 in
February, and $164,000,000 in
January.
Thus, for the first
three
months
of
1942,
only
slightly
over
$340,000,000
of
corporate issues have been mar¬
of
Y.),
Foreign
$106,779,000, and deducting
year.
new
N.
482,000,
and
tions
secure
of the
one
Total
Senate
losses and depreciation of $201,-
Division,
financial press, with the excep¬
employees
authorize employers to set aside
the Fed¬
servedj as Commis¬
all
em;
(Dem., Ind.), Chairman of
Judiciary Committee,
and Representative Bloom (Dem.,
the
announce¬
reported for the
earnings
and
name
Nuys
Adding to
..
sold
,
plan
to accumulate
Farm
pre¬
tion of issues
organizations
of
of
the
Mr. Norris also helped
was
Exchange
and
covers
out with the assistance of vari¬
ous
of
because, it is
ceding
non-corporate issues offered for
cash that are reported in the
campaign, carried
to
past the retirement
which
survey,
less than
quota
ap¬
rejected by the
Governors
announce¬
stated:
tistics Subdivision of the Trad¬
ing
of the next largest
His
President
eral Reserve System
said, he
age.
Bank
further
pared by the Research and Sta¬
ratio.
Chambers
George W. Norris, former Gov¬
of
ment
Cross
Red
blem for commercial purposes. In
identical letters to Senator Van
for the
year 1941 were $641,648,000 as
against $599,444,000 for the year
1940; Net operating earnings for
1941; were $284,015,000, which
was
$18,710,000 more than the
amount
Commission's
The
transportation companies encour¬
aging vacationists to
do
their
G. W. Norris Dies
ernor
the
.
the
of
States
of that year.
31
Operating
,
The
lation
100-mile
concentrations
movements
ruary.
second
The
tion which would
in active opera¬
Comptroller's
ment further
.
several
were
Dec.
on
The
since
figures deviate from the popu¬
but
the
$
tion
Savings
levels
Offerings of corporate
municipal Securities
con¬
tinued to be small in volume, al¬
though increases were shown in
each of these categories as com¬
pared with the month of Feb¬
motorists
his
in
the
of War
lowest
$100,000 and un¬
der in amount and, in the case
of debt issues, of a maturity of
end 'at
the
banks that
and
survey,
sales
the
not
December.
goal for the country-
volunteers, is designed to
Commenting
the
in
to
are
May 25 to enact legisla¬
prohibit the use
gress on
on
$60,914,000 over the gross earn¬
ings for 1940 of the 5,150 national
mar¬
except
and
highest - June
quota is for Cook County, 111.,
in
which
Chicago is located,
while
Philadelphia
is
third.
These counties have quotas of
$49,518,300 and $28,300,700, re¬
spectively. For these three the
figures conform to population,
must do. Our
we
borrowing in the
in
included
Bonds
Wide drive.
The
announced
Delano
May 25 that the 5,123 active na¬
$709,000,000, the lowest amount
decrease
Dakota, (population 42)
is being asked to produce, the
new figures are based on actual
sales in past months and the ex¬
pectation that each county will
meet its quota. The pace will be
increased
next
month
again,
find American sol-
we
Preston
securities
by the Government,
for Treasury bills, which
South
diers throughout the Pacific, in
Burma, China and India. Re¬
of
ket
City's $121,794,100, a quota for all five
counties in the city, to the $100
that
Armstrong
County,
in
part:
issues
new
absence of
announcement
The
that
of
possessions on Dec, 31, 1941,
offered since November, 1941. The reported
gross earnings Of $925,shrinkage, according to the Com¬ 663,000 for the calendar year 1941.
mission, was primarily due to the This represents an increase of
From New York
we
added
nation.
Exchange
announced
on
May
Commission
stated:
must be pre¬
anywhere, and
minimum of delay." Gen.
me,
the vCurrericy' %•*>■-President Roosevelt urged Conr
offered for cash in March declined
-
<
national quota of $800,-:
000,000 from the $600,000,000 May
figure, were announced on May 31
by the Treasury Department for
every one of the 3,070 counties in
fight
to
Comptroller
creased
N. Y., Gen.
Marshall declared that "one thing
pared
and
27
West Point,
at
emy,
Thursday, June 4, 1942
,
/Securities
The
Savings
Bond
county
quotas for June, stepped up by an
average of 33%% to meet the in¬
<
.
,
Mar; Cash Financ'g Down:/ National Bank Earnings :. ? To Bar Commercial Use
;
No Treasury Borrowing
Were Higher.in 1941
\ Of Red Cross Emblem
June War Bond Quota
Raised to $800 Million
France, Says Marshall
,v
homes.
According to the 1940
this
proportion
had
shrunk to 41, throwing the poCensus,
•
sition
of
non-farm
ership back where it
and
ous
home
was
own¬
in 1920
representing the" first seri¬
break
in its advance in the
past 50 years."
Analyzing the reasons for this
trend, the Review mentions the
wave
of foreclosures in the early
%% bonds due 1940 compared with $11,000,000 in
May 1, 1942 and $500,000 2V2% 1939. The combined
assets
for
bonds due May 1, 1942^1947. The
bond& dated May 1, 1942, mature these^O enterprises totalled $597,May/1, 1947 and are callable at 000,000 at the end of 1940 com¬
'thirties, economic pressures that
forced many families to rent their
homes, conversion of numerous
large single-family dwellings to
apartments
or
parlay
downward
movement
$55,000
1,
1943
date
thereafter.
able
May
are
1
issuable
$5,000 each.
or
Interest
and Nov.
in
interest
any
is pay¬
1.
Bonds
denominations of
.
-
.
pared with $553,000,000 at the end
of
while
1939,
from
$160,000,000
1939 to
1940.
surplus
V
at
increased
the
end
of
$184,000,000 at the end of
.
-
tate
tive
for
in
real
home-ownership
investment,
new
rooming houses, the
es¬
prices providing little incen-t-
home
many years.
and
as
an
the low rate of
construction
during
Volume 155
Number 4078
THE COMMERCIAL & FINANCIAL CHRONICLE
2131
Electric Oulpal For Week Ended May 30,1942
Strews 12.5% Gain Over Sane Week in 1941
ODT Advocates Mid-Week P. H. Johnston Awarded
Start For Vacations
Honorary Degree Of LL.D.
The Edison Electric Institute, in its current weekly
report, esti¬
mated that the production of
electricity by the electric light and
portation
industry of the United States for the week ended May 30, 1942,
3,322,651,000 kwh., which compares with 2,954,647,000 kwh. in the
corresponding period in 1941, a gain of 12.5%. The output for the
power
was
week ended May 23, 1942, was estimated to be
3,379,985,000 kwh., an
increase of 11.2% over the corresponding week in 1941.
PERCENTAGE
INCREASE; OVER PREVIOUS TEAR
Week Ended
—'——
Major Geographical Divisions- May 30. '42
New England
14.6
May 23. '42
.
...
Middle
W
Central Industrial
West
Central
Southern
_
_
9.2
8.2
12.6
_
10.4,
....
States—
,
7.0
_
10.1
•'
16.7
4.6
:
:
.
2.5
■
,
Total United States—....*
Mar
21——
Mar.
1942
14—
In
-
28
1941
over
3.3
•
tention
Wednesdays,
and
1929
to
+12.5
2,508,321
1,514,553
1,687,229
1,679,589
2,524,066
2,493,690
3,320,858
2,905,581
+ 14.3
2,529,908
3,307,700
2,897,307
+14.2
2,528,868
1,469,810
2,950,448
+ 10.9
2,499,060
1,454,505
1,699,822
1,688,434
2,550,071
1,429,032
1,436,928
1,435,731
2,588,821
2,477,689
1,425,151
1,381,452
.
2_
3,304,602
2,944,906
' +12.2
2,503,899
May
9
3,365,208
3,003,921
+12.0
2,515,515
May
16
3,356,921
3,011,345
3,379,985
3,322,651
May, 23—+——
May 30———:—
3,040,029
2,954,647
+11.5
.
+11.2
+12.5
*
1,696,543
the
1,705,460
1,615,085
had
1,704,426
taken
The
Securities
*
Edward
and
specialists.
';
-
-
•
ON
orders———
May 23
SJVsJlU 9,930
8,563
225,296 r,
—-—
-
\
$7,667,510
value
257,909
-
$9,372,859
orders:
of
&
*'
>
short
•
.
190
u
sales...—...—.
total sales
Customers'
r
,
•
230
9,730
"
8,459
—
1—
—...—
8,649
-
continued
cooperation of
business organizations in the
planning mid-week va¬
cation
schedule,"
Mr.
Eastman
said, in commenting on the re¬
from
sponse
these
organizations,
ease
the burden
carrier passenger fa¬
common
to
this
office's
response
request
is
most
9,§60
\f
Number of shares:
5,926
5,961
204,755
246,063
Customers' short sales
*
.
sales——
other
Cust omers'
,
———
210,681
252,024
$6,286,166
total sales
Customers'
$v Dollar value
$7,683,379
—
——-----•
Round-lot Sales by Dealers:
of shares:
Number
<
i tOther sales
——————
Purchases
by
Dealers:
Number of shares—
"Sales
65,110
lot
marked
68,040
75,530
;
are reported with "other sales."
fSales to offset
sales to liquidate a long position ^which. is less than a
"other sales."
"short exempt"
with
reported
are
—
»
—_——.
odd-lot orders and
customers'
tourid
200
64,910
sales
Short
Round-lot
./■,
230
50,010
50,240
A
——
»
.
are
Nation's Food Supply To
Be At Record Level
on
than
the
ever
farms
and
before.
ranches
These
will
than last—and
cline
than total requirementsvariations are expected
in .the
seasonally
through
No¬
vember when another season of
k
rising production will get un¬
derway. Effort is to lessen the
supply of individual iterhs. Prod-?
ucts
in
larger domestic supply
and
fruits
usual
summer slump by means
supplemental feeding. In any
case, total production will
be
larger this summer than last.
vegeta¬
of
bles, fluid milk and cream, eggs,
beefy wheat, lamb and mutton.
Products in smaller supply (al¬
lowing' for
military
needs
Production of eggs during the
first four months of this year
and
Lend-Lease commitments) include
mounted
vegetables, pork, animal
fats, vegetable oils, and sugar.
canned
The
Department's
announce¬
4
,•
.
>:
women
wheat
harvest
last
will give the
tworyears' supply—
year,
•
to
grains in bin and
carry
feed
autumn.
4
larger
this
storage
through until the new
is
made
this
Farmers have put in
harvest
acreages
year,
but
.
of feed
more
grains
livestock
into
Domestic
of
larger this
production
and oils will be
f
+
season
export, and some
storage against the
seasonal decline in production
now under way, the bulk went
into domestic consumption.
fats
year
than last by about 1,000,000,000
•
feed
higher
Lend-Lease
went
country a
V or enough for 265,000,000 people
in one year.
<
There are more than enough
:
a
of these eggs were processed for
which
will soon be underway. This
year's crop of winter and spring
wheat, added to the carryover
from
Navy
May 21
that
preliminary salvage work
had been started on the huge
ship,
which was being converted into
the troopship Lafayette at the
time
of
the fire
capsizing.
A
committee
on
which
led
to
its
of
special
until
he
ly
I pounds, but this increase will
only offset the reduction in im¬
ports. Requirements for fats and
oils
t
are
much
than last and
larger this
reserve
be drawn upon
year
stocks may
heavily.
the
planetary
of
cause
war.
to
imperiled.
valiant
our
common
With
Canada's
and
unswerving
aid,
with
the
joined
power
and
courage and audacity your con¬
ference symbolizes, the people
Chief
of the United Nations
forward
Clearing
just completed
in
Na¬
all the battlefields
contribution
holds.
now
fight
and
men
United
destiny the cause of the United
Nations might have been great¬
Executive Of¬
ficer of the bank which
position
he
own
Without Canada's tremendous
relinquished the
Presidency, continuing as Chair¬
confidently
two-year term
President of the Chamber of
Commerce of the State of New
York.
He holds many director¬
a
women
of
the
men
everywhere,
those
who
liberation
ships and has received numer¬
ous honors in other fields.
in
and
the
hopes
awaiting
are
the
look
can
along
hard road of victory.
The hopes of free
as
countries
the
invaders have darkened
despoiled, are with the
savage
and
United Nations.
1
^
A'
1
"
"
'■
>
_____
'*
'
"■
v
Imports For Government
Excepted From Price Order Strict Control By WPB
imported commod¬
On Street Cars & Buses
ities to the United States Govern¬
ment or its agencies after
Advices from Washington May
21, (Associated Press) stated that
have been excepted from the
pro¬
visions of the General Maximum
the
All sales of
May 17,
War
Production
Board
imposed strict controls
bution
Price Regulation, Price Adminis¬
trator Leon Henderson announced
ceptions
ment
of
street
new
has
distri¬
on
and
cars
motor
experts
informed
Secretary of the Navy Knox that
the ship could be raised and he
then issued the order to
begin sal¬
1
to
as
gard to
became
Price
Regulation, and
effective
O P A
May
announcement
"any
the
in
the
amendment
commodity
continental
from
outside
United
the
States
or
territory
any
the
brought
United
or
territory
or
possession."
as
States
loss of the vessel and that confu¬
sion of command and divided au¬
country
or a
ritory
thority
chase
tory
The
causes.
that
the
Normandie
of
use
Senate
direct
fire
cause
was
the
report
of
the
careless
near
the Normandie into
rier,
explaining
witnesses
poses
was
that
had
opinion that its
a
troop car¬
competent
expressed
for
use
war
the
pur¬
inadvisable due to the
vessel's construction.
The Senate report agreed with
findings of the Navy boar<4 of
inquiry and of the House Naval
Affairs
was
not
Committee
an
act
of
that
the
sabotage.
to in these columns
1640.
.
such
possesion under ■ pur¬
by the Government, its
imports to fill Government
In
the
11|
.
addition, it excepts from
General
commodities
he can."
United
Regulation
brought into
States
Cotton Exporters Given
60
commodities
the
porters who have registered sales
under the Cotton Sales for Export
Program
administered
by
the
Commodity
Credit
Corporation
will be given an additional 60
days to complete shipments to
Canada.
The
ment
that cotton be exported
cies,
use
or
to
subcontract
prior to July 31, 1942.
States.
no
The
matter
modities
countries
fill
The
or
contract
a
the
are
or
United
exceptions apply,
whether
the
purchased
from
which
com¬
in
require¬
vices likewise said:
the
they are
to be exported, or
bought after
they have been imported.
amendment
gram provides
chased
from
the
pro¬
that cotton
pur¬
the
to
The ad¬
CCC
under
bond
under purchase
with
previous
any
Government, its agen¬
other buyers who will
them
was
any
territory
are
Days More For Shipping
The U. S. Department of Agri¬
culture said on May 28 that ex¬
possession, such as Alaska or
Puerto
Rico, from
anywhere
outside the territory or posses¬
sion, including the continental
United
States,
provided
the
fire
April 23, page
foreign
or
orders.
The
House group's report was referred
a
or by contractors or
subcontractors
who
will
use
by
the
from
United States ter¬
agencies,
an
oxy-acetylene torch
inflammable material with¬
as¬
manufacturer finds
In other
United
said
a
impossible to keep up with
production
and
delivery
he must notify WPB
immediately, "meanwhile con¬
tinuing to turn out as many of
the vehicles, or bodies for
them,
of
amendment excepts from the
general order imported items
brought into
the
continental
among the naval officers
aboard the vessel were contribu¬
as¬
particular contracts,
schedules
outside
May 22 that the haste im¬
the contractor by the
Bureau of Ships in
Washington
was
an
important factor in the
.
re¬
it
into
said
on
ratings
his
continental
United States from
such
as
into
brought
preference
In event
States
possession
maintained
Production quotas will be
signed individual producers.
"imported commodity" is
defined
be
WPB, without
the board directed.
added:
An
must
any
trolleys.
delivery
and
ordered by
signed
26. The
May
29
words, the Price Administrator explained, the
on
schedules
Supplementary
Regulation No. 4 of the General
The Senate Naval Affairs Com¬
mittee in its report on the disaster
posed
Production
provided ^in Amend¬
are
No.
Maximum
advisory
out proper safeguards.
The Sen¬
000,000 during the same period ate
investigating committee also
last year. Although quantities
•questioned the decision to convert
and
young
people will help with the big
winter
to
peak than ever before—nearly
18,700,000,000 eggs, as compared
with little more than 16,000,-
ment further said:
Many
The
Department announced
more
hot weather sets in. It will de¬
larger
fresh
several million dollars,
feed. Meanwhile,
vaging
operations.
Commander
pastures are in un¬ William A. Sullivan, Chief of the
usually good condition.
Navy's Salvage Section, will direct
Milk is in flush production the project.
this month, but will fall off as
consume
production indicate that while the
nation's total supply of foods will
include
and
held
be
buses, prohibiting any pro¬
on
May 29. Also excepted, said duction or delivery except in ac¬
The salvage work on the former the
announcement, are sales of cordance with specific WPB in¬
French liner Normandie, which
imported commodities to any per¬ structions, The advices added:
burned and capsized at a New son who will use
The order covers bodies de¬
them to fill
York pier last
February, is ex¬ a contract or subcontract with
signed for mounting upon chas¬
pected to take a year and cost United States agencies. The ex¬
sis for either buses or
Begin Normandie Salvage
summer
The Department of Agriculture
an
June 1 said reports on food
be larger this year
when
should
other
over
of this
House Association and has also
gratifying.".
.
President'
and
1935
em¬
depart on
Friday
and
cilities, and the prompt
-
.
sales—
other
Chairman
the
to
liberty
Mr. Johnston is a
past Presi¬
dent of the New York
-week.
on
Sales)
'
'Customers'
to
than
"will do much to
Purchases by Dealers:
Customers'
of
tions
Chemical Bank and was
elected President of the bank in
1920.
In 1931, he was elected
Chairman and acted as both
railroad
planned
travel
other
"The
May 16
Number of shares———
(Customers'
Bank
particularly fitting that
of
men
matter of
Number
Number
days
all
£
*:.'
who
vacation
EXCHANGE
STOCK
Purchases)
,*
.
ployees
.
TIIE NEW YORK
'Week Ended—
of
Brown, President
National
Saturday and to return in mid¬
Odd-lot Sales by Dealers:
(Customers*
E.
First
already had arranged with
The figures are based
STOCK TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODD-LOT DEALERS AND
SPECIALISTS
the
Chicago, reported that his bank
filed with the Commission by the odd-lot dealers and
•
,
of
is
conference
thousands of her
of the
;
you wilt
greetings'
Canada, for Canada has in¬
creasingly become the airdrome
of democracy, sending from her
training fields thousands upon
Louisville, Ky., at the age of 32,
becoming First Vice-President
man
travel.
Exchange Commission has made public a
summary for the weeks ended May 16 and 23, of complete figures
showing the daily volume: of stock transactions for the odd-lot
account of all odd-lot dealers and specialists who handle odd lots
on the New York Stock 'Exchange,
continuing a. series of current
upon reports
vacation
adjustments to avoid week-end
Exchange Odd-Lot Trading
figures being published by the Commission.
their
all
executives
company
New York Stock
with
up
personal
my
in
the succeeding year.
In 1917, Mr, Johnston came to
New York as a Vice-President
Institute of Life Insur¬
President's Association and the
American Life Convention group
It
this
Bank,
.
ance, advised ODT that both the
1,698,492
grateful if
to the conference.
old, he was made
the four national bank
at large.
He held
of
this position until he became a
Vice-President and Cashier of
the
Citizens
National
Holgar J. Johnson, President
of
I shall be
was
examiners
the entire year rather than con¬
1,709,331
3,273,190
lows:
convey
one
July and August.
+ 12.4
+13.1
air
welcomed
were
When 30 years
centrate them in the months of
1,663,291
2,975,407
2,959,646
At the
national
a
Nations
under the age re¬
quired for such an appointment.
over
2,983,048
3,345,502
11—
Dollar
vacations
1,687,229
3,348,608
25
Odd-lot
and
spread
1,537,747
of 26, he became
bank examiner despite the fact
Tuesdays,
Thursdays,
2,550,000
mes¬
opening session by Prime
Minister W. L. Mackenzie King.
The President's message, read
by Robert A. Lovett, U. S. Assist-1
ant Secretary of War for Air, fol¬
clerk in the
as a
National Bank.
that he
on
+ 12.5
a
Nations
the
at
began his bank¬
in his native town of
career
Marion
ar¬
3,357,032
...
ing
at¬
2,983,591
United
ment says:
Mr. Johnston
these
to
United
Company, New York, was training conference which opened
the honorary degree of at Ottawa on May 19, said that
Canada
has
become
the
Doctor of Laws by Centre
"air¬
College
drome of democracy" in the cause
of Kentucky at Danville,
Ky., on
The delegates of 14
May 25.
The bank's announce¬ of liberty.
Joseph
agencies
gin and terminate
Apr.
>
Director
Government
Apr,. 18
May
to
called
3,357,444
4___—
Apr.
to
ODT
Roosevelt, in
the
to
sage
Chemical Bank
awarded
range for annual leaves to be¬
1932
1940
1941
of the
Training Program
& Trust
B.
Eastman's recent appeal to all
12.0
1,480,208
1,465,076
1,480,738
Apr.
letters addressed
organizations,
% Change
'
Asso¬
Board
age
1942
Week Ended—
Bankers'
the
Lebanon, Ky.,
-
Mar.
Com¬
Air
President
Percy H. Johnston, Chairman of
employees who plan vacation
trips.
In its announcement the
DATA FOR RECENT WEEKS (Thousands of Kilowatt-Hours)
\
American
of
end travel demands on the rail^ads and bus lines by scheduling
mid-week departure and return
20.1
^tl.5
$ .' :n.2
12.5
Chamber
ciation, and the Institute of Life
'
.
Trans¬
May 20 requested the
on
States
merce,
17.0
19.6
1
19.2
Defense
Insurance to ask member organi¬
zations to aid in relieving week¬
10.2
.
8.2
'
:
15.4
.
22.1
........
9.3
8.2
.
10.7
_
Rocky Mountain
Pacific Coast-..--^...
7.8
8.4
•
United
of
ODT said:
8.7
9.0
Office
of
May 9, '42
May 16. '42
9.8
_
Atlantic
-
>
v
The
Roosevelt Lauds Canada's
•
prior to July 31, 1942,
may be exported any time prior
to Sept. 30, 1942.
The change
in time for completing ship¬
ments does not change the re¬
quirement that sales must be
made during the period from
Sept. 18, 1941 to July 31, 1942.
Furthermore, the
amendment
provides that purchases from
the
CCC
stocks
must
prior to July 31, 1942,
earlier
date
as
may
be
made
or
be
such
an¬
nounced by the Corporation.
„
rr--r:BW;irT»r:m--"-rtnim^nvv*wi<'ffi^
r,c
25
Moody's. computed
given
■
U.S.
.
Bonds
20
110.70
107.44
91.77
95.92
110.88
107.44
91.77
96.07
110.70
113.70
118.35
106.56
116.02
112.93
107.44
118.35
106.39
116.02
112.93
,107.44
91.91
91.77
91.77
96.07
96.07
96.07
110.88
110.88
110.88
__
91.77
110.88
110.88
110.70
110.70
110.70
110.70
110.88
11C.88
110.88
112.93
116.02
118.34
106.39
116.02
112.93
107.44
118.40
106.39
116.02
112.93
107.44
tV?>23-118.38
-^v22
118.33
•J-Xl; 21
118.08
106.39
116.02
112.93
107.44
91.77
106.56
116.02
112.93
107.44
91.91
106.39
116.02
112.93
107.44
91.77
-117.92
106.56
116.02
113.12
'107.44
92.06
117.86
106.56
116.02
113.12
107.62
92.06
96.07
96.07
96.07
96.07
96.38
96.54
117.88
106.56
116.02
113.12
107.62
92.06
96.54
26
______
20
19
>-UO"
18
______
'
"
92.06
113.50
East
107.44
107.44
113.12
92.20
96.69
110.70
113.70
116.22
113.12
107.62
92.20
107.62
92.20
110.70
110.70
Coastal
116.22 v 113.12
96.69
96.69
113.70
106.74
113.70
Total
106.74
106.74
116.22
J 113.12
107.44
107.62
92.20
92.06
96.54
76.54
110.70
113.70
113.70
96.69
96.69
96.69
110.70
113.70
110.70
113.70
110.70 ; 113.70
110.70 113.70
,
113.12
116.22
118.01
106.74
116.02
113.12
107.62
92.20
117.86
106.74
116.22
113.12
107.44
92.20
117.98
106.74
116.22
113.12
107.44
92.20
92.06
106.56
117.90
116.22
.113.12
107.44
110.70
96.69
117.80
106.74
116.22
113.12
107.62
92.06
96.69
110.70
106.92
116.41
113.70
107.62
118.06
106.92
116.41
118.10
106.92
116.22
113.89
113.70
107.62
107.62
92.20
92.35
92.20
96.85
97.16
97,00
110.88
110.70
110.52
97.00
96.85
96.85
96.85
110.34
109.79
109.60
109.79
'
106
91.91
'
91.34
91.34
91.62
-
118.20
106.74
116.22
113.50
117.80
106.21
115.63
117.33
106.21
115.43
113.12
112.93
117.32
106.21
115.63
112.93
107.62
107.09
107.27
107.27
27
116.34
106.39
115.63
113.31
107.62
91.62
96.85
113.31
113.50
107.80
107.80
91.62
91.77
96.85
97.16
20
116.32
106.56
115.82
13
116.27
106.74
116.41
-
New
97.16 .110.70
97.31
110.52
113.70
113.70
113.50
113.70
107.80
107.80
.91.91
92.06
114.08
117.60
106.92
116.41
113.89
118.00
106.92
116.61
114.08
107.62
107.62
107.62
91.91
91.91
91.77
97.31
97.31
97.16
110.70
110.52
110.70
117.61
106.04
115.82
113.50
107.09
90.63
95.92
110.34
113.31
1942_
118.40
106.92
116.61
114.08
107.98
107.09
92.50
97.47
114.08
90.63
95.77
110.88
109.60
IiOW
High
112.75
92.50 "97.78
89.23
95.62
112.56
109.42
116.41
111.62
91.19
96.54
110.70
Total East of Calif.
113.70
113.70
113.89
112.75
1942_____
111.90
106.04
115.43
112.75
1941——
120.05
108.52
118.60
116.02
115.89
105.52
116.22
112.00
109.60
106.04
118.82
106.39
116.80
113.31
106.92
Low.. 1941
Total United States
1941_
2,
production
Kansas,
?2 Years
JUhe
"fl!
1,
1
Avge.
Corpo-
V*1942—
y>U Daily
"H\i)
Jupe
L
>'<-<
_
3.36
~~
~~
9~
12
„
3.35
"II______
5
,
_
__
3.35
3.35
3.35
!?2.84
2.84
2.84
3.35
_______
3.36
1
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
4.26
4.27
2.84
3.00 "*3.30
3.34
2.84
2.97
2.96
2.97
3.35
.2.97
3.30
3.30
3.30
3.30
3.33
3.32
3.32
3.30
3.29
3.29
3.29
3.29
':
'
3.34
2.84
2.95
"3.30
4.26
4.25
4.26
4.28
4.32
4.32
4.30
4.30
4.30
4.29
4.28
4.27
4.28
3.34
2.83
2.96
3.30
4.28
9
3.34
2.82
2.95
3.30
4.29
2
3.39
2.86
2.98
3.33
4.37
3.39
2.88
3.02
3.33
2
2.98
3.38
2.84
2.87
3.00
13
3.38
2.88
3.01
6
Mar
3.38
2.87
3.01
3.37
2.87
2.99
27
20
Feb
:
27
20
> i
3.36
"
—
,6
Jan
High
*£
V
-
1942
2.99
2.83
2.98
2.83
2.98
3.34
-
30
23
' '
2.86
3.35,
3.35
-
-
:i3
,
,
71,700
73,000
88,550
28,000
19,550
295,700
320,700
21,850
+
2,050
21,500
20,700
—
1,150
99,450
90,250
62,100
—
4,600
64,050
38.000
95,150
+
4,500
92,750
21,750
..-+
150
21,650
6,700
—
800
6,550
54,450
—
16,300
67,400
113,100
+131,300
2,851,100
3,147,450
16,200
639,450
625,400
+115,100
3,490,550
3,772,850
73,300
,
2,968,000
d673,800
631,000
—
3,599,000
In February, 1942, as follows:
Louisiana, 20,800; Arkansas, 2,300;
82,950
19,000
T
3,950
Oklahoma,
gasoline
112,700;
New Mexico,
29,800;
5,600;
■■■,
21,900.
of Conservation
RUNS
2.84
-.
.
Committee of California
STILLS;
PRODUCTION
m.
23,
STOCKS
3.13 ,;
3.13
3.13:
3.13
3.13 ■■
3.13 :
3.13
3.13
3.13
3.13 >;
3.13 >
3.12
this
section
include
totals
In
Rate
District—
reported
Gulf,
Crude
Runs to Stills
2.97
2.97
2.97
2.97
2.97
2.97
2.97
2.97
2.97
2.97
2.97
S.
U.
Tot.
Fuels
Oil
porting Average erated Blended Gasoline
1,457
61.1
152
87.4
448
3,623
472
712
90.8
19,963
2,799
418
81.1
361
86.4
2,377
1,168
,9,184
952
1,578
138
50.7
92
66.7
305
2.473
329
559
787
90.9
619
78.7
1,591
17,323
11,593
56,860
4,684
86.9
3,393
72.4
10,042
t97,034
30,614
79,442
16, 1942_y> 4,684
86.9
3,484
74.4
10,945
99,134
30,206
78,826
12,780
94,141
34,906
92,092
basis May 23,
U.
Tot.
S.
basis May
2.97
U.
2.96
Bur.
S.
of
4.02
3.19
16,625
595
v.
3,225
•
'
1942
3.34
.____
2.82
2.95
4.24
3.28
>
request of the Office of the Petroleum Coordinator.
89,713,000
barrels;
unfinished,
7,321,000
barrels,
11 At
refineries,
at
"During the last few days it has become evident that the sub¬
stantial step-up in lend-lease steel requirements for the third quar¬
be
so
sharp that domestic steel rolling schedules will be
-
,
Daily Average Crude Oil Production For Week
Ended May 23,1942 Up I I5,1 DO Barrels
The American
Petroleum Institute estimates that the daily
aver¬
is
con¬
stantly, rising .and large U.
bombers
of a
type which can
reach the eastern plants of Nazi
Germany are running 70% ahead
of schedule, "The Iron Age"
is
told.
-
production
Automotive plants are pro¬
duce
four-motored bombers.
steel, automotive-air¬
craft and shipbuilding industries
and in machine tool and other
"In
t
«
r
i
.£
iV
'
*
vi>l.
-it s
.
+
:
V.
,
)
O'fc
V
)
}
.•*>; :S;C
believed
that
by
are
as¬
and
meaning
Mills
value.
which have been accepting noth¬
ing below top rating now in some
promise
Others
>
.r ,v
-i);
delivery
on
rating.
any
able to continue taking
are
business for definite shipment on
higher priorities, but the margin
is constantly narrowing.
"Tin plate. mills find their. po-:
sition
reversed, the choke point
being supply of black plate,-
now
is
limited
by semifinished
steel available for that use.
Until
recently scarcity of tin held back
production,
plants, production frequently is
exceeding rated capacities, which
throws out calculations of
war
i
h-
i
t
or¬
in
booked
April, 327,420 net
largest for any month
were
since
1929.
Total
orders
booked
in four months exceeded the simi¬
lar
period last
use
of steel in other than
struction
April
the
has
been
is
figure
As
war con¬
stopped the
indication of
an
of
extent
by 12.4%>.
year,
essential
of
use
structural shapes.
"Flow of scrap material is con¬
sistently adequate for all current
needs and in
ing
some
cases
in
consumers
taxes
is reach¬
volume
that
handling facilities."
Moody's Daily
| Commodity Index
Tuesday, May 26_________,
23.1.7
Wednesday,
231.7
the
crude oil production for the week ended May 23, 1942, was
more
aircraft parts, in agencies on output and is forcing
3 599,000 barrels, an increase of 115,100 barrels over the preceding ducing
alterations in plans for completweek and 124,500 barrels higher than the daily average for the month some instances, than the aircraft
of< May as recommended by the Office of Petroleum Coordinator. industry can now absorb for final j ing the Nation's industrial war
The current figure, however, was 173,850 barrels lower than the daily assembly. Two such parts plants machine. ;
age gross
its
reports that backlogs aver- had been considered reached..; A
Toronto plant is retooling to pro¬
six months business.
"Aircraft
it
Allocations and directives
pany
age
and
all rated requirements, al¬
though not much capacity expan¬
sion
is
expected < by that time.
tons,
2.95
of Oct. 2, 1941, page 409.
is
allocated.
"Fabricated structural steel
Quipt Off 0.3%—Lend-lease Meeds
Stepped Up—New Plant Construction Restricted
may
by
requests
June allocations
relationship yet at¬
terminals, in transit, and in pipe lines.
„___
Ushed in the issue
ing
which
3,922
Steel
ter
es¬
for steel plates and tonnages be¬
.
greatly affected, says "The Iron Age" in its issue of today (June 4),
High 1941
3.42
2.86
3.06
3.39
4.47
4.03
. 3.20 >
3.08 further adding: "Efforts to turn out a very large tonnage of steel
Low
1941
3.25
2.72
2.85
3.19
4.24 ?
3.89
3.03
2.82 for export before June 15 have already forced many steel mills to
r 1 Year ago
rearrange
schedules
and
have^
June 2,
1941
3.37
2.81
2.99
3.34
4.33 ,;> 3.97
3.13
3.02
pushed back deliveries on some: have reduced their operating rates
'2'Years ago
highly rated tonnage. Steel spec¬ because of this temporary over¬
Jurie
1,
1940
3.80
3.05
3.16
3.77
5.23
4.67
3.41
3.33
of parts. > It
ifications in May in most cases flow
appears
that
These prices are computed from average yields on the basis of one "typical" bond (3%95
fell short of the volume placed in some Detroit plants will shortly
coupon,
maturing in 25 years) and do not purport to show either the average level or th<
average movement of actual price quotations.
They merely serve to Illustrate In a more com¬
April but nevertheless exceeded be ready for additional war con¬
prehensive way the relative levels and the relative movement of yield averages, tho lab
ter being the true picture of the bond market.
production
so
that
backlogs tracts, although the - saturation
f The latest complete list of bonds used in computing these Indexes was pub.
changed little.
One steel com- point for such orders in that area
>;Low
between
balance
for
reflected
purposes,
closer
ders
3.02
3.12
14,464
M.
1941_
tFinished,
bulk
,
3.92
the
*At
44,468
Mines
basis May 24,
3.13
2.95
3.94
3.14
2.95
3.94 *
3.15
2.98
3.95
3.18
- 3.01
^3.95:3.19
3.02
3.95
3.18
2.99
3.95
3.16 >- 2.99
3.95 > 3.15
■
2.98
3.93
3.13
,2.98
3.93
3.13
2.97
3.92
3.14
2.97
V 3.92
3.13 2.97
3.92
3.14
2.97
3.93
j 3.13
2.96
4.01 >' 3.15
2.99
4,153
M.
1942_
of
B.
sential
have so mUch tonnage on
directives that they are unable to
84.9
of
better distribution
shows
cases
84.5
B.
of
that this rating has lost much of
Fuel
89.7
California
Cleveland, in its
the iron and steel
markets, on June 1, stated in part:
"Improvement in inventory con¬
trol by War Production Board
of
"Steel,"
summary
of Re-
174
Rocky Mountain
ago.
"sidual
Distillate
% Op- Natural finished
784
Okla., Kansas, Mo
1,691,800 tons one week
1,674,800 tons one month
ago, and 1,601,000 tons one year
pared to
ago,
UStocks
2,383
Inland Texas—
and
ingots
of Gas
liStocks
Arkansas
Appalachian
Ind., 111., Ky
to 1,686,700 tons of
and castings, com¬
steel
Oil and
Stocks
North
-
equivalent
and Un-
>>>
Louisi¬
Gulf,;
ana
Louisiana
This
ago.
year
increase
of
0.3
points, or 0.3% from the preced¬
ing week. The operating rate for
the
week
beginning June 1 is
Finished
Mines basis
♦Combin'd: East Coast,
Texas
one
an
Includ.
at Re-
Daily
99.2%
fineries
Bureau of
a
Gasoline
% Re-
week
and
suming a leading position in con¬
trolling delivery of steel, conges¬
tion in A-l-a priority being such
on
Production
tial
June
meet
estimate of unreported amounts and are
therefore
Poten¬
beginning
1, compared with 99.6% one
ago, 98.6% one month ago
capacity for the week
mid-autumn plate production will
Figures
Daily Refining
Capacity
the
tained
OF
1942
plus
an
that
show the best
Oil Producers.
OF GASOLINE;
OIL, WEEK ENDED MAY
2.97
2.97
2.98
2.98
2.98
2.98
2.98
2.98
2.97
2.98
2.98
2.97
2.97
2.98
3.13
3.12
3.12
3.12
3.12
3.12
3.13
3.13
3.13
3.13
3.12
3.12
3.12
3.12
3.13
3.96
3.96
3.96
3.97
3.97 "
3.96
3.96 >
3.96
3.96
3.96
3.95
3.93
-
.
TO
indicated
operating rate of steel companies
having 91% of the steel capacity
of the industry will be 99.3% of
represents
2.97
'3.96
4.37
3.34
400
1,900
+
98,250
other States,
2.37
3.12
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
3.98
3.97
3.97
3.97
3.97
3.97
3.97
4.27
2.83
2.83
3.35
___
17
—
296,300
(Figures in Thousands of Barrels of 42 Gallons Each)
4.20
4.26
4.26
4.27
4.26
4.26
3.34
Apr'"-24
-
,
I
3.35
__
6
~~
"
2.84
2.85
2.84
2.84
2.84 "
2.84
2.85
3.35
_
7
2
2.85
3.36
„
__
8
2.85
3.36
'
_
11
2.85
3.36
V
13
2.85
3.36
-
3.00
3.00
2.99
2.99
3.00
3.00
3.00
2.85
/
3.35
—
~~"T
'
3.36
_
15
4
2.85
2.85
3.31
3.31
3.31
3.30
3.30
3.31
3.30
3.31
3.31
3.31
3.31
3.30
3.30
3.31
3.30
3.30
3.31
3.31
3.31
3.01
3.01
3.00
3.00
2.85
2.85
3.36
is
-•
2.85
3.36
_______
__
16
14
3.01
3.01
3.01
2.85
-
3.37
_______
_
19
V
2.85
3.37
3.36
21
20
•
3.13
4.01
4.29
4.28
4.29
4.29
4.29
4.29 >
4.28
4.29
4.27
4.27
4.27
4.27
4.27
4.27
4.27
4.27
4.26
3.31
3.31
3.31
3.31
3.31
3.31
3.01
3.01
3.37
—
—
"_
22
'
2.85
2.85
3.37
26
25
23
-
4.02
4.31
4.29
3.31
3.01
2.85
3.37
s:
3.36
3.37
28
246,600
3197800
FINISHED AND UNFINISHED GASOLINE AND GAS AND FUEL
EXCHANGE CLOSED
27
.
2.85
30
29
:
225,200
308,550
—
85,550
500
17600
Kans., Neb., Miss., Ind. figures are for week ended 7 a.
CRUDE
P.U. -Indus
R. R.
Baa
3.31
3.02
3.01
2.85
3.37
___
Texas,
d Recommendation
Corporate by Groups
Corporate by Ratings
Aaa
Aa
A
<
3.37
2
1
May
+
.
rate
V-
Average
107.09
105.69
—
May 20.
c This is the net basic 16-day allowable for the period May 16 to 31, inclusive.
Under the order of May 15th all fields are permitted to produce on 13 out of 16
days, there being only a small exemption from the shutdown ordered for May 16,
17 and 18 in fields whose oil is considered necessary for the war effort.
MOODY'S BOND YIELD AVERAGESt
(Based on Individual Closing Prices)
-r
"
86.51
79.49
99.68
110.15
112.19
99.20
113.13
1940_
received
73,200
•
3,474,500
natural
42,600;
b Okla.,
v
ago
of
6,000;
California,
Steel
83,350
:
673,800
and
announced
1
2,100
+
122,350
a O. P.
C. recommendations and State allowables represent the production of all
petroleum liquids, including crude oil, condensate and natural gas derivatives recovered
from oil, condensate and gas fields.
Past records of production indicate, however
that certain wells may be incapable of producing the allowables granted, or may be
limited by pipeline proration.
Actual State production would, under such conditions,
prove to be less than the allowables.
The Bureau of Mines reported the daily average
»1 Year ago
Juhe
!
Iron
June
on
telegraphic reports which it
70,850
2,800,700
California
American
The
Institute
had
b
73,300
growth of
industry."
America's great arms
that
'
7,900
Mexico
of the results of the chain
one
276,050
21,000
25,200
—
be
of recent events in the
209,650
60,500
Montana
the next
1,402,000
1
,
orders
steel
few weeks will
during
215,700
b
4
98,300
structural
of
1,060,800
72,191
105,400
;
the rearrangement of ex¬
Sizable cancella¬
or
isting facilities.
tion
258,000
\
Ind.)_______
113.50
113.50
116.22
_
&
the light of
see
+ 32,700
incl.
Michigan
110.34
110.70
116.41
116.22
9
High
111.
(not
not
+135,800
—
305^200
17,900
Eastern
will
day and other projects under way
242,100
321,100
74,000
dustries
1,203,300
85,900
48,100
Indiana
Colorado
106.74
106.92
-3.i 6 16
78,800
-f.373,650
> |
329,200
113.31
106.92
—
79,750
219.300
Mississippi
110.15
U7.02
117.08
30
23
168,400
242,200
cl,493,800
298,600
__
—
Wyoming
117.51
6
Jan
™,#
33,800
+
8,300
+144,650
.
Illinois
112.75
113.31
2
<i5.j
—
370,600
113,200
960,000
Louisiana
Arkansas
113.50
112.93
;
6
v
76,450
129,400
Coastal Louisiana
113.89
114.08
114.08
27
y-'Hii:
82,250
150,150
156,700
,
Texas
North Louisiana
113.70
118.08
13
Feb.
7,650
2,700
87,100
Texas
Total
-'216,950
4,350
+
Southwest Texas
116.02
106.74
3,950
—
Central Texas—
East Texas-
106.56
254,050
50
i
113.70
113.70
117.79
1941.
414,700
145,600
T
113.50
113.12
1942 394,450
+ ;
built. Many ex¬
pansion projects in the conversion
stage in the steel and other in¬
ing
5,500
—-
88,000
West Texas
110.88
110.70
110.70
116.22
;
May 24
May 23
Eastern! plate
large
mill may not be
be altered.
The need for
plant expansions will be
eliminated through sub-contract¬
;
North Texas
96.54
2
Mar
b 256,250
b
4,050
96.54
96.69
10
*.J
259,300
4,500
92.06
17
v
259,300
386,250
Panhandle Texas
92.06
92.06
v
Previous
Week*
—
1,750
1942
Kansas
Nebraska
107.44
117.76
______
May 1
b
107.44
117.83
117.98
1
May 23
438.500
113.31
117.74
24
Beginning
May
!
Ended-
From
structed. ; A
some
'
• ■
Week
Ended
4 Weeks
Change
Ended
438,500
113.12
2
Apr.
Week
ables
Oklahoma
116.02
106.56
(FIGURES IN BARRELS)
—Actual Production—
Allow-
dations
113.50
113.50
113.70
113.50
113.50
113.70
113.70
116.02
5
~
State
a
.
106.56
__
6
OIL PRODUCTION
O.P.C.
a
106.56
4
*">#.
96.54
96.54
92.06
107.62
______
7
' -
107.44
113.31
;___
9
•Vf-'i
113.12
116.02
117.72
'8
tod
,
116.02
106.74
CRUDE
Recommen-
117.80
12
"•'h:
may
DAILY AVERAGE
117.89
___
;rTtV 11
,
106.56
117.89
r
14
.'Wt 13
.:MH
.
117.88
15
r
half of the blast furnaces planned
113.50
106.39
re-j
four months ago may not be con¬
113.70
113.50
113.50
118.35
27
r,i
113.70
113.70
EXCHANGE CLOSED
29
to
23,1942.
R. Ri
95.77
112.93
116.02
___
v28
r;
Baa
91.48
decision
whole ran to stills, on
crude oil daily during
the week ended May 23, 1942, and that all companies had in storage
at refineries, bulk terminals, in transit and in pipe lines as of the
end of that week, 97,034,000 barrels of finished and unfinished gaso¬
line.
The total amount of gasoline produced by all companies is
estimated to have been 10,042,000 barrels during the week ended May
Corporate by Groups •
■..■ P. V.
Indus
A;
107.44
Aa
of the
the
of
plant construction will
be drastic in steel where perhaps
new
4.684,000 barrels estimated daily potential refining capacity of the
Yields)
112.75
116.02
106.39
are
PRICESt
Average
Aaa
106.39
averages
strict
United States, indicate that the industry as a
a Bureau of Mines' basis, 3,393,000 barrels of
Corporate by Ratings *
rate *
118.30
1
BOND
on
118.33
_
30
•4;:.
Avge.
Corpo-
.Govt.
Daily
Averages
May
MOODY'S
(Based
1942—
bond yield
and
"Effects
reported
as
by the Institute follow: '*>'
:
•
: '
'
Reports received from refining companies owning 86.9%
I
the following tables:
in
2
prices
bond
Further details
for the week ended May 24, 1941,
average
Moody's Bond Prices And Bond Yield Averages
Juile
Thursday, June 4, 1942
THE COMMERCIAL & FINANCIAL CHRONICLE
2132
Thursday,
Friday,
27_'i____i._i_i_^-_
May
May
May
231.3
29___!
*
231.2
Saturday,' May
r >>«'
Monday, June 1 ____229 9
Tuesday, June
A •.'228.8
Two
weeks ago, May
Month
1941
19_^___
231.0
June 2
High—Sept.
Low—Feb.
231.5
2
May
ago.
Year ago,
^
194*4
•___
9
—219.9
17
171.R
II
1942—High—April 9
L^w—Jan.
I
2
>I.
v+
"
t +
-
i v..i;
234.0
220 O
»»Holiday.
sL
-
-f
; tr- i
<
i*:;
•
Volume 155
Number 4078
THE COMMERCIAL & FINANCIAL CHRONICLE
2133
L
Labor Bureau's Wholesale Price Index
Shows Slight Advance In
prices of eggs, potatoes and chickens.; The only other
group aver¬
age tow change during the week was the textile
index, which ad¬
vanced fractionally.
During the week price! declines outnumbered price advances
.
May 23 Week
The Bureau of Labor Statistics, U^ S.
Department of Labor, an¬
on May 28 that
except for sharp increases in certain farm
products and foods which are not controlled under the Office of Price
nounced
13
to
and
WEEKLY WHOLESALE
prices for farm products and foods brought the all-com¬
modity index up 0.2% during the week to equal the high point
reached earlier in the month.
At 98.7% of the 1926 average, the
Bureau's comprehensive index of nearly 900 price series is 16%
higher than at this time last year. •
[*1935-1939
Group
v.
,
25.3
Foods
:•:>■
;
.
1342
Farm
,
Livestock
10.8
Miscellaneous .commodities
...
Textiles
Metals
materials...—Chemicals and drugs.
Fertilizer materials
.3
Fertilizers
.3
Farm
100.0
(1926=100)
31,
114.6
.
'
93.4
134.3
117.4
127.9
128.7
148.8
149.2
104.4
151.7
120.7
were:
May
107.1
101.1
104.1
104.1
99.3
127.7
128.0
128.0
106.9
30,
1942,
99.5;
May
83.3.
23.
1942,
5-23
1942
1942
104.8
.....
5-9
1942
104.3
104.0
99.1
All Commodities
Farm
5-16
1942
98.2
99.3
products
Foods
4-25
5-24
5-16
4-25
1941
1942
1942
104.8
77.3
+0.5
99.6
79.5
+ 0.9
—0.5
+ 24.7
119.2
119.8
120.2
119.8
106.9
—0.5
—0.5
+ 11.5
Hides and leather products
97.2
97.3
97.3
97.0
82.9
—0.1
+ 0.2
+ 17.2
Textile
78.9
78.8
78.7
78.5
76.2
+ 0.1
+ 0.5
+
*104.0
*104.0
*103.9
103.9
98.2
110.0
110.1
110.0
108.8
100.5
products!
Fuel and lighting materials
Metals and metal products
Building materials
97.3 -5
—
Chemicals and allied products—
Housefurolshing
goods
0
3.5
+ 0.1
+
5.9
+ 1.1
—0.1
+
9.5
90.2
97.3
97.3
97.1
84.2
0
+ 0.2
+ 15.6
104.6
104.6
104.6
104.4
92.5
0
+ 0.2
+ 13.1
0.2
+ 13.2
—0.6
+ 24.9
90.2
89.9
90.0
79.7
99.8
98.9
99.5
100.4
79.9
92.8
92.8
92.6
92.6
86.5
0
+ 0.2
+
Semimanufactured articles
*99.2
*99.3
99.3
98.9
87.5
—0.1
+ 0.3
+ 13.4
Manufactured products—
All commodities other than farm
*97.4
*97.2
97.4
97.3
86.7
+ 0.2
+ 0.1
+ 12.3
*95.9
*95.9
*95.8
95.6
87.7
0
+ 0.3
+
Miscellaneous
...
commodities
Raw materials
—
products
—
All commodities other than farm
-
*98.7
7.3
1
9.4
98.6
85.0
+0.2
+0.1
+16.1
'Preliminary.
be continued at the 15% rate dur¬
with
tantalum were placed under full
allocation by the War Production
Board."
The publication further
reported
Engineered Construction Volume Up 132%
sold
industry
copper
was
of
132%
their
June
allocations, a record performance.
total, however, is 24% below the,preceding.week. Private work is
Early notification naturally will
81% under the 1941 week, and 41% lower than a week
ago.
The re¬ expedite the movement of metal
port went on to say:
to consumers.
The tonnage to be
With this week's construction total, the volume for
May reaches released for June will be
larger
$1,044,572,000, the highest monthly total ever reported.
Over 90% than that of May.
of the monthly volume is concentrated in Federal
work, and the bal¬
Domestic consumers
ance
are
is almost
equally divided between private, and State and munic¬
ipal construction.
The
current week's
volume brings
1942 construction to $3,936,the 22-week period last year, and
just about on a par with the volume reported for the entire year in
356,000,
increase of 75%
an
over
1940.
Public work is 125% higher than a year ago as a result of the
214% gain in Federal work.
Private work, however, is 53% lower
than in the period last year.
Construction
current
week
volumes
for
the
1941
week,
Public
I
>;
Federal
and
bridges,
ing and
248,000;
528,000;
the
Divi¬
other copper products to attach
handles to blades of saws. Refer¬
207,208,000
157,769,000
der
20,876,000
11,487,000
195,721,000
12,336,000
the
20,175,000
last week
over
unclassified construction.
are:
which
products is emphasized in
ruling on the use of brass screws
5,458,000
"
construction
a
May 28, 1942
$163,227,000
145,433,000
In the classified construction groups, gains over the 1941 week
are in waterworks, sewerage, public buildings, and unclassified con¬
of
to
copper
9,305,000
municipal
Increases
extent
are
in
bridges, streets and roads,
Subtotals for the week in each class
Waterworks,
$2,113,000; sewerage, $2,437,000;
$1,228,000; industrial buildings, $1,857,000; commercial build¬
large-scale private housing, $3,415,000; public buildings, $96,earthworks and drainage, $956,000; streets and roads, $10,and unclassified construction, $44,445,000.
ring to Copper Conservation Or¬
M-9-c,
amended
as
Director
May 7,
Industry Opera¬
of
tions has ruled that
copper pro¬
ducts may not be used in the man¬
ufacture of any. item where the
of
use
less
a
practicable.
material
scarce
Steel
screws,
use
is
of
which is not
to be
prohibited, are held
satisfactory substitute for
a
brass screws for
saw
handles.
Lead
Though
lead
be
emergency pool will be continued
for June, with
State and municipal bond
to
sales, and $3,050,000 in corporate security
issues.
in
comfortable
a
set
aside
"take"
New construction financing for the year to date, $6,818^823,000. is
108% above the $3,271,780,000 reported for the opening 22-week
will
position,
the
producers obliged
of output.
The
15%
be
based on April's
^ate of production. Producers met
DAILY
May
21
on
1, declined for
the second consecutive week.
In the week ended May 30, 1942, this
index was 127.7, compared with 128.0 in the preceding week.
A
month ago it was 128.0 and a year ago 106.9, based on the 1935-1939
average as 100.
The slight drop in the all-commodity index last week
was
due
primarily to declining prices for farm products, the index for which
dropped to March levels.
A slight advance in cotton was more
than offset by rather marked declines in grain and most livestock
prices.
the
The
price
modifies
of
fertilizer materials
cottonseed
meal.
index
The
declined
index
of
due
to
a
drop
miscellaneous
in
com-
lower, reflecting price declines for cottonseed meal,
linseed meal, and bran.
A lower price for linseed oil caused a
small decline in the building material average.
The food- group
average
was
moved to higher levels last week
as
a
result of upturns in
.
The New York State Depart¬
ment of Labor's index
nun^tier
of
factory
employment ; for
April was 145.2.
The corres¬
ponding index number of fac¬
tory paypolls was 217.9.. These
.
index
numbers
with
the
100. The
as
represent
increases
and
York
State
plants
the tin
Labor,
supply. The problem not
yet solved, it is argued, relates to
collection and;salvage of old
Dr.
E.
Information,
under
B.
tin
In centers where
cans.
salvag¬
ing of used cans has been tried,
results have been far from satis¬
factory.
ing the
Patton, Director.
into
Mexico Joins In War
Instructions about clean¬
cans
and
pressing
Against Axis Powers
them
flat form for easy transpor¬
tation to the detinner are
being
President
a
ignored by
contributing to
salvaging containers.
acho
on
many
the drive for
Quicksilver
of
Manuel
Mexico
against the Axis Powers. The
state of
war
was
made to exist
as
May 22, the date the Mexican
Fairly large business has been Cabinet
proposed
to
join
the
in
quicksilver in recent United Nations at war. The action
weeks, and, with Metals Reserve was taken in reprisal for attacks
ready
to
purchase
so-called on Mexican shipping by Axis sub¬
"frozen" metal on the basis of marines and after the Axis Pow¬
flask, New York, the ers refused to accept a Mexican
regards the market as more note asking for complete satisfac¬
or less stabilized.
Support of the tion for the sinking. President
asked
for
the
war
price structure by the Govern¬ Camacho
ment is viewed as war policy in declaration on May 28 and the
Chamber
of
so
far as quicksilver and other
Deputies and
the
strategic metals are concerned. Senate unanimously approved it
on May
On spot metal, quotations in New
29 and 30, respectively;
per
trade
Mexico
Zinc
St. Louis
8.25
11.700
52.000
6.50
6.35
8.25
8.25
11.775
11.700
52.000
6.50
6.35
8.25
11.775
11.700
52.000
6.50
6.35
8.25
27
11.775
11.700
52.000
6.50
6.35
8.25
11.700
52.000
week
6.50
6.35
ended May 23
are:
8.25
Domestic
thus becomes the
27th
member of the United Nations and
the 10th Latin-American nation
that has declared
war on
The six
American
Central
the Axis.
co.Uhr
tries and the three Caribbean^ re¬
publics have been at
time.
While
country
with
copper f.o.b.
has
no
war
South
declared
for sbrfie
American
all,
war,
the
exception of Argentina
Chile, have severed diplo¬
refinery, 11.775c.; export copper, f.o.b. refinery, 11.700c.; and
Straits tin, 52.000c.; New York lead.
matic
relations
6.500c.; St. Louis lead, 6.350c,;
St. Louis
Powers.
zinc, 8.250c.; and silver, 35.125c.
with
the
Assis
quotations
on
are
"M. & M. M.'s" appraisal of the major United States
sales reported by producers and
agencies.
They are reduced to the
or St. Louis, as noted.
All prices are in cents
New York
per pound.
Copper, lead and zinc quotations are based on sales for both
prompt and future
deliveries; tin quotations are for prompt delivery only.
trade,
domestic
consumers'
copper
plants.
As
prices
are
delivery
quoted
charges
on
vary
a
delivered
with
the
basis; that Is,
destination, the
above are net prices at refineries on the Atlantic
seaboard.
Delivered
prices in New England average 0.225c. per pound above the
refinery basis.
Export quotations for copper are reduced to net at refineries on the Atlantic sea¬
board.
Cam-
signed
closed
11.775
figures shown
Avila
formally
June 1 Mexico's declaration of
war
of
6.35
at
New
Department
of
the direction of
the
6.35
the
and
rolls
time ago to add to
6.50
In
14.5%
tistics
detinning
some
6.50
delivered
of
41.7%, respectively, over April
year ago.
Current reports on
factory employment and pay¬
ment-financed
proposed
52.000
above
April fig¬
drop of 0.1%
are collected, compiled and
analyzed in the Division of Sta¬
52.000
The
a
in employment and an increase
in payrolls over March
action in reference
11.700
basis of cash,
computed
for the years
to the construction of five
govern¬
11.700
markets, based
are
average
1935-1939
ures
War Production Board has
not yet taken
11.775
n.775
who
employed 668,292
workers in April oft^&:
weekly payroll of $24,849,419.°"
,
PRICES
Average prices for calendar
tabu¬
covering reports from
representative manufac¬
a
11.775
Average
state¬
final
on
the
on
These
turers
v i
26
June
based
are
3,130
Chinese tin, 99%, spot,
51.125c.,
25
The weekly wholesale commodity price index compiled by The
consumer
of 0.7%
23
National Fertilizer Association and released
materials.
lations
St.
.
22
Commodity Price Average Again Recedes
of
and
OF METALS ("E. & M. J.'
QUOTATIONS)
-Electrolytic Copper
Straits Tin,
•LeadDomest., Refin. Exp., Refin. New York New York
St. Louis
period last year.
war
there
employees
productkm.
feeling the effect of
were
ments
allocations,
all week.
$192
to
appears
New capital for construction purposes for the week totals $7,047,000.
This compares with $34,755,000 for the corresponding week last
year.
The current week's new financing is made up of $3,997,000 in
of
making
use
Tin
The
shifting
government restrictions
grades.
obtain¬
of
Industry Operations, WPB,
moving to curb civilian use of
41,051,000
_
struction.
The
is
May 21,1942
$216,513,000
construction
and
the
basis
sion of
29,317,000
construction
State
and
the
on
12c.,
Valley. Foreign metal is moving
into the country on the basis of
11.75c., f.a.s. United States ports.
$70,368,000
construction
Private
week,
copper
or
May 29, 1941
Total
last
are:
ing
•
and
goods
al¬
6.40c.,
metals
Concerns
the call for High Grade exceeds
the supply available.
The trade
feels that there will be no
prob
lem
in
distributing the other
The public
a
from civilian to
Zinc
.
to the more than seven-fold increase in Federal Work.
of
In reference to June
the
over
basis
sur¬
to learn on May 26 that
corresponding 1941 week, but 25% fabricators
had
received
word
lower than last week as reported by
"Engineering News-Record" on from the authorities in
Washing¬
May 28. Public construction climbs 284% over the week a year due ton on
the status of
increase
the
on
in
shop
Louis.
Copper
The
Engineered construction volume for the week totals $163,227,000,
prised
an
•
occurred
these major groups, also,
was
Quotations on common lead con¬
tinued at 6.50c., New
York, and at
6.35c., St. Louis.
Chemical lead
follows:
as
June
on
cur¬
tobacco, leather goods and mis¬
cellaneous^ industries^ ; Within;
Washington May 26 to confer
the authorities
con¬
;
forced to
machinery* petroleum products,
locations.
Arsenic and
producing
were
products in the stone,
clay, and glass group. Net in¬
"Metal and Mineral Markets" in its issue of
May 28 stated: "Al¬
location certificates for copper for June started
moving out of Wash¬
ington to consumers during the last week.
Beginning June 1, zinc
will come under full
allocation, and most of the details for handling
the distribution of the metal have been
settled.
Requests from con¬
sumers for
High Grade zinc have been excessive.
The emergency
pool in lead, which some observers
in
of
April.
chemicals, rubber products and
Noii-Ferrous Metals—Copper Allocations For
June Under Way—Lead Pool For June At 15%
thought might be abandoned, will
of
their
creases
ing the next month.
98.6"
*98.5
+
■
•
products and foods..
0
+ 0.9
irf
.*+
goods
5-24
+35.6
middle
several
'
1941
0
the
middle
recorded for clothing and
textiles, food products, lumber,
furniture, paper and printing,
May 23,1942, from
Commodity Groups—
of
at work in
were
99.7;
.
little
tion reported further
expansion.
Decreases in total employment
105.0
118.7
115.3
104.1
1926-1928
120.7
119.8
the
Miller,
was
number
employment
while
those engaged in war produc¬
127.6
115.3
total
earners
Industries
117.7
120.7
and
tail
103.4
151.8
wage
sumer
115.3
104.0
state¬
a
S.
Department also said:
107,2
127.7
the
>
100.8
115.3
machinery.....
base
133.9
119.5
are
on war
The advices from the State Labor
119.7
118.7
—
on
Frieda
State between
123.2
115.1
in
March
102.7
191.6
104.4
groups combined.—...
1941,
138.4
148.9
.
.....
....
All
*Indexes
May
159.3
137.8
151.7
—
:!
.3
The following table shows index numbers for the
principal
groups of commodities for the past three weeks, for April 25, 1942,
and May 24, 1941, and the percentage changes from a week
ago, a
1
,
Building
1.3
163.0
187.4
132.2
:
6.1
110.8
119.5
___
Fuels
8.2
100.9
114.1
17,3
the
1941
126.0
138.0
'
187.5
«.
—
Grains
7.1
139.1
163.0
May 31
1942
125.3
change
factory
Ago
136.5
,
Products—^
'Cotton
r
1942
;
125.6
—
Year
Ago
Apr. 25
May 23
138.7
——
Month
Week
May 30
w
^'Cottonseed Oil
23.0
reports.
Percentage changes to
v
.
Fats and Oils.
following from the Board's advices:
During the period of rapid changes caused by price controls,
materials allocation, and rationing the Bureau of Labor Statistics
will attempt promptly to report
changing prices.
The indexes,
however, must be considered as preliminary and subject to such
adjustment and revision as required by late and more complete
factories
May 16 by Industrial
Commissioner
Preceding
Week
„
State
who reports that there
Latest
Bears to the
We also quote the
month ago, and a year ago.
ment issued
100]
==s
%
Each Group
Total Index
York
production, according to
COMMODITY PRICE INDEX
Compiled by The National Fertilizer Association
in
New
concentrating their efforts
and 15 declines.
vancs
Mfg. Employment
Shifts To War M
10; in the preceding week prices of 12 commodities declined
advanced; in the second preceding week there Were 16 ad-
12
Administration General Maximum Price Regulation
average prices
for commodities in primary markets remained
comparatively steady
during the week ended May 23.
The Bureau reports that the ad¬
vance
It. Y.
On
foreign business, owing to World War II, most sellers are restricting offer¬
ings to f.a.s. transactions, dollar basis.
Quotations for the present reflect this change
in method of doing business.
A total of .05c. is deducted from f.a.s, basis
(lighterage.
York
contained
$199.21
per
at
$197.30
(8
flask.
Silver
The
silver
market in Londoi
has been quiet, with the
price un
changed at 23 %d. The New Yor1
Official
prices
and
are
the
also
U.
S. Treasur;
unchanged a
35V8C. and 35c., respectively.
Thursday, June 4, 1942
THE COMMERCIAL & FINANCIAL CHRONICLE
2134
•
.<;/
TotalLoadS;
•'■•>•/Received fronj'
>•/•
Connections
•
,
FDR Greets
'
President
Argentina
in
Roosevelt,
Revenue
\
con¬
gratulatory
telegrams / to
the
Argentine Republic on the anni¬
versary
of its independence on
May 25,
expressed his "confi¬
dence" and "conviction" that the
"spirit of resistance to aggression
and devotion to democracy" will
peoples of
the American Republics will pre¬
serve
their freedom and liberty.
President
Roosevelt
addressed
to
messages
who
Ortiz,
that the
and
continue
President Roberto
is unable to act as
ing President.
'
,
following
The
Republic
of
solemn acts upon
saries of those
which
are
fact
we
harsh
the
sovereignties
our
based,
three
are
confronted with
many
lib¬
who
that
less
peoples
erty-loving
than
the anniver¬
celebrate
publics
Re¬
American
the
in
we
ago
years
in-
were
dependent members of the faul¬
tily of nations
>•
ing
have
their liberties
to
extending
highly
I take particu-
tine anniversary,
pleasure in expressing my
confidence that the spirit of re¬
sistance to aggression and de¬
votion to democracy so nobly
lar
:
personified in your actions and
will lead the
people of your great country,
as in the past, along those paths
your
utterances
which alone
can
insure the con¬
preservation of those
political and economic freedoms
uopn which our American civ¬
tinued
increase of 551
an
below
Seaboard
34,412 cars, a de¬
and a decrease of
the
preceding
anniversary of the independence
of
the
wish
Argentine
extend
to
to
I
Republic,
your
Excel¬
lency and to the Argentine peo¬
ple
cordial greetings. At the
time I express the convic¬
my
same
tion, which I feel sure is shared
by your Excellency, that be¬
cause of their unity the peoples
of the
republics of the Americas
will preserve
that freedom and
liberty gained for them by their
forefathers which is today chal¬
before in the
history of their independence.
lenged
never
as
FRANKLIN D. ROOSEVELT.
loading amounted to
Coke
Formation of
a
Pro¬
Resources
Board, which will recom¬
mend precautions against sabotage,
bombing and invasion of vital in¬
dustrial centers, was announced
on
May 15 by War Production
Board Chairman Donald
son,
Nel¬
M.
Journal,"
which added:
relative
wartime importance
all industrial
of
instal¬
lations, facilities and vital eco¬
nomic
plants,
resources
war
and make
rec¬
ommendations for their protec¬
tion," the announcement stated.
It
will
further
act
as
a
co¬
ordinating agency for protective
measures
the Army and Navy
and
source or
facility has been over¬
production division was named
head of thd new
Northwestern
organization. *
"
District—
781
'
■
Great
* >$4,203
7
1,584
363
•> >10,891
1,266
10,945
6,715
6,438
19,942
> :
'%
26,327
'526
>20,242
487
131
916
-> > 888
122,711 ,:V 99,341
112,521
90,465
18,349 >>12,849
2,368
2,898
18,463
9,414
> 3,415
3,518
•
16,153
I
360
z/1,003 »
527
7,973
10,185
470
131
' " 42,574
125,018 /
1
23,634
2,877
l
19,015
21,951
3,326
...
4,021
' 21,438
28,610
<
1,290 /;
10.371
....
1,107
-682
-
4,992
,18,494
22,921
24,209
—
3,072
9,298
3,897
282
533
9,223
127
3,826
735
76
2,147
2,856
4,353
,
.
10,706
;
592
-
,673
'
.
2,294
r
8,899
,
21.526
Western—
*
783
629
456
4,272
^,$44
2,578
1,989
2,194
1,534
;7,416
10,371
8,225
9,092
6,030
9,514
172
232
213
389
310
2,510
2,442
1,818
3.269
2,115
137,429
134,695
108,831
59,607
55,424
21,851
7,295
557
£
Minneapolis & St. Louis
.
;
Minn., St. Paul & S. S.
Northern Pacific———;—
Spokane International—,.—^.....^
Spokane, Portland & Seattle—
',;
Total'
/ 1,928
1,132
>302
■'!
433
'>>>146
A
Green Bay & Western—j;..*
Lake Superior & Ishpeming—
'
■
'
49
2,295
3,209
4,739
Central Western District—
14,181 cars, an increase of 135 cars
of 449 cars above the
Atch„ Top. & Santa Fe'System......
1942
Four
Four
weeks
Four
weeks of April
Week
of May
1940
3,215,565
2,866,565
2,465,685
3,066,011
Week of
May
16—
of
May
23
Week
Total
2,793,630
794,299
665,547
837,149
680.628
860,802
679,065
866,027
687,480
15,538,892
13,378,462
16,878,480
———
142
88
Chicago, Burlington & Quincy——15,826
17,091
12,792
10,950
9,281
Chicago & Illinois Midland—.;
Chicago, Rock Island & Pacific..
Chicago &
Colorado
Eastern
Salt
Nevada
North
Toledo,
Union
Peoria
1,672
1,822
6,034
& Aroostook
Bangor
& Maine
Boston
Indianapolis & Louisville—
Chicago,
Central
8.615
7,245
14,906
13,751
1,473
1,396
2,028
2,747
1,360
28
Vermont
Delaware
Delaware, Lackawanna & Western—
19
65
73
1,360
2,051
2,745
6,355
4,871
11,357
10,091'
7,553
10.065
8,936
9,590
9,511
194
Toledo
&
Toledo
Trunk
Lehigh
L
125
1,186
278
360
298
2,333
3,251
15,847
12,356
16,520
15,252
6,140
4,833
7,403
Western
3,484
2,372
1,304
-
2,188
1,699
11,129
3,145
2,569
3,420
6,438
4,645
349
2,314
Central
2,284
2,082
41
45,398
53,356
41,540
54,473
9,900
Lines
N. H. & Hartford
York, Ontario & Western
York, Chicago & St, Louis
N. Y„ Susquehanna & Western
Pittsburgh & Lake Erie
Pere Marquette
Pittsburgh & Shawmut
Pittsburgh, Shawmut & North
Pittsburgh & West Virginia
12,160
9,173
19,260
30
1,302
1,986
1,383
1,049
1,076
* 1,026
2,051
2,362
509
111
1,879
2,029
961
769
490
10
17
45
0
28,815
28,654
23,067
9,462
6,525
288
358
268
1,637
<1,533
11,576
14,384
11,882
12,974
10,095
......
Western
———
1,192
591
316
112
1,987
1,667
1,602
112,724
118,784
i.
—
Pacific......
.
;
»
j
-
152
511
0
-
3
-
4
3,628 /
'
94,634
-
499
79,793
2,101
62.966
Southwestern District—
Coast
Island-
Lines
133
3,223
3^049
1,929
250
212
2,371
1,889
2,613
2,285
1,705
2,177
325
>281
1,118
•' 383
259
233
360
New
.
2,619
1,948
~
967
204
212
321
341
4,310
3,665
4,144
3,477
14,831
12,276
17,405
11,455
15 494
Pacific——I.C—
'
;'l02
r-
_.I
Orleans—
79
177
163
8,371
6;037
7,459
6,002
2,756-
,
85
8,196
Southwestern
Texas &
478
1,007
1,218
4,757
Lines...
Louis-San Francisco
St, Louis
,
129
—
Pacific
ouonah Acme &
/ i
716
Arkansas
Missouri-Kansas-Texas
Missouri
1,747
2,990
3,464
& Arkansas
Litchfield & Madison—
Midland Valley..
St,
338
2,460
2,581
1,564
1" 209
—
Kansas City Southern
Missouri &
144
178
2,486
>> 5,185
Kansas, Oklahoma & Gulf...
Louisiana
196
5,068
—...
j
Tnternational-Great Northern
Texas
&
2,660
2,123
5,803
3,141
^
10 266
Pacific—
7,850
5,874
"4,351
3964
Wichita Falls & Southern
3,832
163
—
>
160
43
...
/
15
Weatherford M. W. & N. W
Total
4,176
:
1.
>>v
53,856
64,095
6,454
3.945
21
4,687
'
//>
167
47
16 <
42,981
68
-
.-'/
58,572
53
45,181
Note—Previous year'a figures revised. -
,
48
Weekly Statistics Of Paperfaoard Industry
16,733
1
1,138
1,028
2,815
2,562
5,461
15,216
,13,574
709
378
1,011
1,665
6,447
9,409
10,126;
5,858
5,905
360
507
6,484
'
752
390
1,311
'
86
48
888
357
.
838
632
1,134
1,156
4,855
12,862
11,378
5,608
4,579
4,387
4,427
158,001
> 185,321
147,241
725
41,576
dustry, and its
219,574
206,666
489
1,020
the
27,047
figures
a
statement each week from each
production, and also
activity of the mill based
on
a
figure which indi¬
the time operated.
These
advanced to equal 100%, so that they represent the total
935
32,067
includes
program
member of the orders and
cates
iV
'
^
•
•
r
The members of this Association represent 83% of the total in¬
2,441
6,331
629
Paperboard Association, Chicago, 111., in relation to activity in the
paperboard industry.
386
251'
2,787
6,039
387
We give herewith latest figures received by us from the National
1,626
8,524
7,402
5,105
„
Total
1,638
3.370
15
1,012
(Pacific)...
Burlington-Rock
Gulf
49,063
6,765
;
Wheeling & Lake Erie
1,986
4,861
234
426
>
7,859
412
8,215
Rutland
631
3,113
,
963
Wabash
3,191
2,018
Total
8,993
Montour
N. Y„
9,892
3,229
1..896
7,947
6,289
Central
1,839
9.616
2,199
Valley
Maine
1,967
8.?79
Lehigh
Monongahela
York
312
253
195
River
New England
872
.
10,703
8,939
Shore Line
Hudson
&
Lehigh &
283
2,037
3,487
Ironton
&
Erie
Grand
310
3,259
Mackinac
&
Detroit
278
1,767
13,914
Detroit
Detroit,
New
19
1,504
6,846
Hudson
&
236
341 :!•
952
Indiana
Central
1,682
585
860
'
1,692
914
1,767
-
Pacific System
Western
2,984
1,719
5
276
888
,
Pacific
&
;
674
,2,096
626
Peoria & Pekln Union...
1,579
1,335
783
2,747
Northern—..
Southern Pacific
2,294
2,559
Lake..—
Western
1,783
10,690
2,836
11,341;
Illinois
& Southern
&
3,085
13,804
2,560
,
Missouri-Illinois
of the freight carloadings for
469
>
Illinois Terminal—
578
•
Arbor
Ann
2,853 V
Fort Worth & Denver City
2,489,280
2,495,212
837,748
—
4,238
550
Denver
839,052
9
10,557
2,589
700
22,204'
,
Denver & Rio Grande Western—...
839,253
of May 2
Week
1941
3,454,409
858,904
March
of
18,185
3,440
671
Alton
Bingham & Garfield—
3,858,273
3,122,773
3,171,439
3,351,038
of January—
weeks of February.
weeks
Five
21,979
are
industry.
STATISTICAL REPORTS—ORDERS,
Allegheny District—
Baltimore
Bessemer
Buffalo
Lake
&
Creek
Cambria
&
—
Ohio
&
&
Erie
Gauley—
Indiana
Central R. R. of New Jersey
Cornwall
Cumberland
Pennsylvania
&
Ligonier Valley
Long Island
Penn-Reading Seashore
Pennsylvania
Reading
Union
-
Lines
System
Co
(Pittsburgh)
Western
-
Maryland
—
680
40,530
7,737
325
1,978
6,767
621
303
136
884
1,730
83,307
14,517
21,455
3,906
/
5,701
268
2,269
363
7,386
2
;
2,352
V.
"fa'4
//>>'
184,876
Total
District—
'■-*
6
1,362
15
18,559
695
639
63
63
315
235
7
33
135
60
48
25
748
580
3,442
2,925
1,710
1,095
2,576
1,883
88.079
63,827
63,621
57,029
Mar.
13,936
27,338
23,319
Mar.
21
19,254
16,044
8,489
6,940
Mar,
28-
4,459
3,538
12,221
8,652
Apr.
4..
Total
;
15,206
192,399
166,717
141,351
14,117
28,838
29,487
24,369
13,226 '
22,522
23,942
19,820
.6,918
6,149
4,832
4,055
2,114
1,793
58.261
48,244
22,258
22,059
"
7
•;>>
Percent of Activity
Remaining
Tons
Tons
168,424
Current
162,894
Feb.
Cumulative
522,320
167,424
510,542
101
157,563
165,240
.<496,272
102
102
163,067
164,601
493,947
100
102
177,823
21
—-
28_
_
_
7—
Mar.
11
Apr.
165,081
101
101
100
101
101
101
May
16
May
23
102
157,908
_
...
_
_
169,444
465,439
442,556
100
169,249
436,029
100
101
153,269
428,322
93
101
129,834
__
168,394
145,000
.
505,233
■•■476,182
144,061
_
153,442
94
101
93
100
161,888
_
...
-
<
404,199
156,201
i.
388,320
>
y;
101
135,273
_
—
/—
90
360,221
86
99
141,745
336,530
82
93
120,224
__
371,365
143,427
119.142-
_
152,569
130,510
2
9
102
166,130
_
18
25
>
101
Feb.-14—
Feb.
Apr.
146,208
:
Orders
V
1942—Week EndedFeb.
May
55.605
Tons
14
16,791
8,235
>•
Virginian
Production
*
May
rocahontas
,
Received
■Period
6,272
2,023
PRODUCTION, MILL ACTIVITY
Unfilled
Orders
Apr,
Norfolk & Western
William K. Frank of the WPB
•
123
/.
Great Northern
week, and an increase
compared with the correspond¬
ing week in 1941 except the Eastern, Allegheny, Pocohontas and
Central Western, but all districts reported increases over 1940.
-
Chesapeake & Ohio
looked."
9,846
23,075
•
674
Southbound^—
Ft. Dodge, Des Moines & South,,
other
agencies have af¬
fected during the past year "to
assure
that no
important re¬
>> .743
,
8,765
24,233
'
1,210
Elgin, Joliet & Eastern-—x.._—
districts reported increases
All
Akron, Canton & Youngstown
The Board "will evaluate the
17,340
430
> >;•'
>11,289
.
Chicago, Milw.f St. P. & Pac
Chicago, St. Paul, Minn. & Omaha
Duluth, Missabe & Iron Range——
Duluth, South Shore & Atlantic
according to Washington ad¬
vices to the "Wall Street
100
4,337
19,203
22,912
;
139
1,227
-
325
529
Chicago & North Western
preceding week, and an increase
corresponding week in 1941.
the
above
New
tection
936
corresponding week in 1941.
New
Resources Protection Bd.
> 3,360
•
302
492
2,097
v
520
3,076
14,570
7,491
•'/> 531
304
179
1,269 /
i'
v.
.
Chicago
the separate
date, the
27
1,883
2,975
'
/;V>-182 >.>>137 >/»:118
538 ->/v406
St. L.—- ' 3,699
3,528
2,801/ ' •: 3,9653,222
System
Cefttral—l—————i——
Utah—.;
memorable
'
•••«> 1,107
> 23,988 •/
154
•'
159
>1,413
27,386 ' > 27,321
i
Eastern District-
this
255
44
1,172
■ 368
3,835
':
>"£27,773
—
Total
>
railroads and systems for the week ended May 23, 1942;
To
Acting President Castillo, During this period 56 roads showed increases when compared with
President
Roosevelt telegraphed the corresponding week last year. as follows:
EEVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS
May 25, 1942.
(NUMBER OF CARS)—WEEK ENDED MAY 23
Total Loads
His Excellency Dr. Ramon S.
Received from
Total Revenue
Railroads
Castillo, Acting President of
Connections
Freight Loaded
1942
the Republic of Argentina.
1940
1941
r1941
1942
On
> 4,301/
—
Line—
Winston-Salem
increase of 3,412 cars
increase of 10,604 cars above the
week, an
•
1,604
2,839
179
1,267.
810
93
2,688
>1,488
,
327
1,027
;|/> 363
.
Nashville—£
Air
Tennessee;
above the corresponding
The following table is a summary
FRANKLIN D. ROOSEVELT.
1,226
——>
loading amounted to 87,205 cars, an
Ore
6,8-16
4,028
>
Northern
Southern
above the preceding
8,800
3,767
/;/>*■ 206
.209
1,721
! 31
—>■
:
Southern^
Piedmont
corresponding week in 1941.
the
&
8,838
N;
322
Southern—'
1,179
3,628
>'■'/ 454
' 518
1,838
1,608
Richmond, Fred. & Potomac
week in 1941.
products loading totaled 48,410 cars, a decrease of 1,444
the preceding week, but an increase of 6,692 cars above
Forest
cars
cars
&
Florida East Coast
Norfolk
amounted to 12,853 cars, an increase of 859
cars above the preceding week, and an increase of 2,424 cars above
the corresponding week in 1941.
In the Western Districts alone,
loading of live stock for the week of May 23, totaled 9,067 cars,
ilization is based.
-
Durham
1,935
■
4,478
>
411
•
213
•
11,775
>•
3,551
-
Nashville* Chattanooga &
Live stock loading
of 2,015 cars
—
Macon, Dublin & Savannah
1941.
in
week
above
suppressed.
congratulations upon
significant Argen¬
my
this
552
1,158
*:
;
Mississippi Central———-————
in 1941. In the Western
loading for the week of
May 23 totaled 21,914 cars, a decrease of 102 cars below the pre-'
ceding week, and a decrease of 5,145 cars below the corresponding
invaded—
been
in
Therefore,
'you
today endurslavery. Their
are
bitter
a
homes
of
663
Columbus & Greenville
Louisville
/
grain products loading .totaled
cars below the preceding
week,
840
.
Clinchfield
5,718 cars below the corresponding week
Districts alone, grain and grain products
Argentina, Buenos Aires.
3
and
2,395
-
.
1941
358
689
Carolina
Illinois Central System—•/—_
I- i
'
.;,
Line
Western
&
——_
less than
merchandise
corresponding week in 1941.
crease
His Excellency
Roberto Ortiz,
President of the
As
of
Loading
Grain
May 25, 1942.
.
*
Coast
1942
247
806
' 876
,12,862
f
U
Central of Georgia
Charleston
1940
344
673
Birmingham & Coast
Georgia
Georgia & Florida—
Gulf, Mobile & Ohio—
96,365 cars, a decrease of 854 cars
decrease of 65,889 cars below the
Ortiz:
<
.
'386 /•*
of Ala
R.
Gainesville Midland
1,304 cars or 0.2% below the preceding week.
'%■. V,;■:>>> >> \
Miscellaneous freight loading totaled 378,339 cars, an increase
of 164 cars above the preceding week, and an increase of 9,054 cars
-
R.
:
19421941
District—
P.—W.
Atlantic
the Association of American Railroads announced on'
The decrease below the corresponding week in 1941 was
28,279 cars or 3.3%, but the increase above the same week in 1940
was
150,268 cars or 21.9%.
>.'/;>.i>V'r ;>.>■>/ ;*>> "■
.
Loading of revenue freight for the week of May 23 decreased
cars,
corresponding week in 1941.
& W.
Atlanta,
May 28.
above the
\ *
Southern
Atl.
Loading of revenue freight for the week ended May 23, totaled
837,748
>•>://';':y/'';>>'->> Total Revenue
" ////./"'•.■'
•■/<>"''"/. Freight Loaded
Railroads
;
Alabama, Tennessee & Northern—.—
,
President
to
Roosevelt's message
.
>>/"/.:>•
.'/>/
carload lot freight totaled
below the preceding week, and a
S. Castillo, Act¬
corresponding week in 1941. '
Coal loading amounted to 165,933 cars, a decrease of 3,024 cars
is
President below the preceding week, but an increase of 14,105 cars above the
chief executive because of illness,
and to Dr. Ramon
Freight Cer Loadings During Week i
Ended May 23,1942, Totaled 837,748 Cars
140,650
316,443
81
97
99
Note—Unfilled orders of the prior week plus orders received, less production, do not
necessarily equal the unfilled orders at the close. Compensation for delinquent reports
orders made for or filled stock, and other Items made necessary adjustments of unfilled
orders.
.
.
/./.
Volume 155
Number 4078
THE COMMERCIAL & FINANCIAL CHRONICLE
Lumber Movement—Week
Ended
May 23, 1942
Weekly Coal And Coke Production Statistics
Trading On New York Exchanges
The Bituminous Coal Division? U. S. Department of the Interior,
in its latest report states that the total
production of soft coal in the
week ended May 23 is estimated at
11,340,000 net tons as against 11,480,000 tons in the preceding week* thus indicating, as in the past six
The
....
Lumber
V;
production
during the
May 23, 1942, was 4%
greater than the previous week,
shipments
were
7% -less,
new
week elided
business,
10%
less,
reports to the
Manufacturers
according
National
to
and
Association
softwood
from
mills.
Ship¬
ments
were 3% above
production;
hew orders 6% above production.
Compared with the corresponding
week
of
1941, production was
about
the
greater,
less. The
of
the
shipments,
same,
and
4%
business
new
The U. S. Bureau of Mines reported that production of
Pennsyl¬
000
tons,
decrease of 61,000 tons,
NET
of
1935-39
average
UNITED
WITH
TONS
STATES
COMPARABLE
DATA
iMay 23,
•Bituminous coal—
Total,
Reported
20
below
production
weeks
of
for
corresponding
the
was
1942
3%
weeks
orders
<
the
of
of
Coal
business
new
ratio
of
stocks
a
ago;
year
17%
were
the
gross
less.
Record
and
for
173,151
1,419
week
current
'
for
of
of
purposes
5,581
historical
1941
Week
475
products
262,673
270,407
260,550
PRODUCTION
309,435
^
1
i, •
*
Hardwoods
1942 Week
Mills
384
106
the
convenience
w.th
competitive
1,201,000
1.262,000
1,141,000
1,199,000
178,000
total—
•Includes
May 23
1941
;
15,640
121
Orders-
105
16,112
125
Signs Housing Loan Bill
Roosevelt
4.
has
sighed
authority to insure mort¬
for housing of war workers,
announced
on
May
26.
Congressional action on the legis¬
lation was completed on May 20
when the House adopted the con¬
ference report;
Senate approval
on May 18 was referred to in t^ece
columns of May 21, page
1935.
Originally the measure nas^ed the
House on April 22 and the Senate
on May *3.
gages
was
authority
was
because
exhausted. In
ing
the
addition to
insurance
loan
rais¬
bv
$500,000,000, the bill extends the per¬
missible
all
maturity of any
insured
present limits on insured
mortgages for single-family and
multi-family home units.
147,400
3,096,300
1,181,100
1
;/
Simplify Naturalization
For Non-Citizen Soldiers
are
OF
COAL, BY
made
was
in
May 20 that the
Army plans to simplify the na¬
turalization procedure for all noncitizen
soldiers, providing they
entered the country legally.
This
authority was granted under the
on
Roosevelt
issue
Act
Powers
of
March 28
on
:
Alaska.————
1941
■
5 a
——-
393-
...........
4
dier
who
entered
legally, who
page
the
country
served at least
three months in the Army since
has
approved by his command¬
ing officers,
j
trades.
On
the New York Stock Exchange, on the1 other
transactions are effected by dealers engaged
result, the round-lot transactions of specialists in
registered are not directly comparable on the two exchanges.
of
the
are
odd-lot
As
a
total
than the num¬
more
entries
in
than
more
"
>
Stock
Sales
the New York
on
Transactions
for
Stock
one
y
Exchange and Round-Lot
of Members*
Account
:
(Shares)
:
May 9, *42
% *
%*
May 16, '42
71,390
59,790
1,671,760
1,544,490
1,604,280
_.
Round-Lot Transactions
Dealers
291
12
73
"129
vn,- :•
13
83
1
1
1
1
Montana
678
523
430
403
262
245
New Mexico
41
43
31
35
160
32
79
68
848
756
792
227
208
104
127
43
33
23
20
5
3
2
1
12
57
46
42
34
27
17
28
19
18
15
389
465
860
2,884
2,581
1,877
1,995
3,578
148
140
115
84
121
5
6
15
17
91
49
38
28
74
>//:
100
..
;
418
436
17
,
376
279
.
26
32
22
32
2,248
1,760
1,675
904
788
564
555
129
124
88
80
61
the
the
B.
&
Panhandle
O.
1
tt
tt
1
Total
11,480
11,415
9,936
7,541
7,269
1,266
872
855
1,068
lished
records
••Alaska,
States."
of
12,681
the N. &
in Kanawha,
Georgia,
the
of
North
Carolina,
1,000 tons.
ttLess than
W.;
C.
Mason, and
Mineral,
v""'
37,690
10,808
Mines.
Stock
Sales
for
the
on
York
New
Account
Total Round-Lot Sales:
A.
of
and
Tucker
for
counties,
Pennsylvania
HAverage
weekly
Dakota
rate
included
tlncludes
anthracite
for
with
1.
they
for
3,705
260,370
the
Account
306,795
21,580
sales
25,900
2,705
3,185
27,065
Other sales b
32,355
Western
Total
Other
sales
9.86
29,770
transactions
initiated
the
on
•;i
3,330
'
'
sales
Federal Reserve Reports Brokers' Balances
Total
Board
of Governors of the Federal Reserve System an¬
May 27 that member firms of the New York Stock Ex¬
Total
(Ledger
Balances
in
Millions
of
1.08
4,350
8,020
170
<«
•
I. /
13,705
sales
100
13,135
4.50
13,875
13,235
3.47
v
Total—
Total
purchases
Short
34,460
Total
Odd-Lot
36,220
3,075
sales
Other sales b
'•■;,//• 3,285
49,840"
43,325
sales
Transactions
46,400
for
the
Account
15.53
14.56
53,125
of Special¬
ists—
Customers'
Dollars)
Increase
sales
Total
4.
/:
C.
ended April 30, 1942, follows:
1.17
9,550
Other sales b
Dur¬
ending April 30, 1942, customers' debit balances de¬
$91,000,000 and money borrowed decreased by $68,000,000.
The Board supplies the following summary of the customers' debit
balances and principal related items of the member firms of the New
York Stock Exchange that carry margin accounts, together with
.4,350
2,755
purchases
Short
year
creased by
sales
0
2,555
_
.7. Other transactions initiated off the floor—
..
change carrying margin accounts for customers reported for April a
decrease of $16,000,000 in their customers' debit balances and a de¬
of $6,000,000 in money borrowed by the reporting firms.
2,300
•
200
/ Other sales b
■
_
10.01
35,540
floor—
purchases
Short
year
303,090
of
purchases
Short
pub¬
month.
entire
ii;
*
%*
May 16, *42
/
registered—
are
Total
Arizona,
"other
%*
4,110
Transactions of specialists in stocks in which
from
'
changes for the month and
•.
Exchange and Stock
256,260
' Transactions
Total
ing the
,.n
13.15
Members:
2.
on
•
201,730
(Shares)
May 9, '42
,
sales b
Total .sales. *
/
12,810
8,337
Curb
Members"
sales
Round-Lotr
Virginian; K. & M.; B. C. & G.;
Clay counties. tRest of State, including
South
and
8,396
13.81
——Total for Week Ended-
& O.;
§Data
Oregon.
Bureau
2.67
164,040
232,080
Transactions
1,932
12,742
and
36,680
220,280
52,890
10,878
1,262
Nevada,
2.41
179,190
.
sales
Total Round-Lot
**5
District and Grant,
California, Idaho,
sales
Other sales b
Other
on
41,080
249,400
110
1
'
•Includes operations
on
sales
Short
Short
and
3,800
32,880
862
tOther Western States-
_.
5,610
35,470
!.
purchases
Total
1,380
Wyoming..
3,45
48,910?
4. Total-
44
2,314
878
Total, all coal.
5G,760
3.40
42,740
250
243
30
2,341
...
coal
56,760
—
22
155
5
Total bituminous
sales
7,300
43,460
sales
Total
**14
558
2,880
§Pennsylvania anthracite
60,020
13,810
42,950
Other sales b
57
23
752
27
—
Short
.
21
K®
_
....
7.03
42
V I
6P8
—
Virginia—
Washington
•West Virginia—Southern
•West Virginia—Northern
61,850
sales
Total purchases
47
A
60
__
114,290
the floor-
on
3. Other transactions initiated off the floor-
183
44
Utah...
134,240'" 8.00
.____
initiated
purchases
Total
672
—
___
sales
131
977
236
Pennsylvania bituminous
26,590
87,700
Other sales b
89
24
155
:
Tennessee—
Total
Short
1,002
_
_
111,350
33,470
394
_
__
-
•>// m "/•/'■/
100,770
Other transactions
1,292
V:
_
144,810
sales
Total
2.
tt
972
—-•
Michigan
./v
Other sales b
66
1,173
Missouri
and
■■
■
registered—
Short
168
1
Indiana
Kentucky—Eastern
Kentucky—Western
Maryland.
:Y '
Mem¬
Total purchases
398
8
97
;i
463
Iowa
of
Specialists:
are
111923
1,171
—
and
they
May
304
•Or,/
71
123
Account
the
Transactions of specialists in stocks in which
V
avge.
1937
1940
for
bers, Except for the Odd-Lot Accounts of Odd-Lot
3
or
short
Customers' other
decrease
sales
sales
:
50
o-:
20,367
c
21,162
Since
April 30,
Debit Balances:
Debit
balances
and
Cash
hand
firm
and
partners'
accounts
and
in
Money
Customers'
banks__________
and
Credit
—
1
91
20
6
—
4
68
balances:
firm
in
and
capital
20,417
21,162 1
sales
10,446
10,675
term
Shares
calculating
the
total
partners'
—
—
+
18
1
in members' transactions
investment
196
+
/.
1
r—'"5
—
—1
7
31
volume
includes
associate Exchange members, their
including special partners.
these percentages,
round-lot
on
both
as
per
cent of twice total round-lot volume.
rules
c
are
In
the total members' transactions is compared with twice
the Exchange for the reason that the total of members'
purchases
and sales,
while the Exchange
volume
only sales.
b Round-lot
21
accounts—
2
6
includes all regular and
"members"
their partners,
and
transactions
—
61
in
firms
a
300
trading accounts
balances
—
—
—
247
balances
2
195
Other
Credit
purchases
1941
—
.
-—
credit
Total
Total
April 30,
•The
76
*
borrowed
—16
investment
:
Credit Balances:
1942
515
balances
in
trading
on
Mar. 31,
1942
Customers'< debit
Free
Sept. 1, 1939, and whose applica¬
tion is
43
559
1,743,150
May 15,
May 18,
3
386
72
130
Illinois
Texas.
May 17,
1942
(noted in
of April 2,
they
Short sales
1.
President
1338);
the law provides that citizenship
may be conferred upon any sol¬
our
41
577
__
Total for Week Ended-
3.
May 9,
1942
1942,
by
signed
20
off
STATES
—Week Ended
May 16,
crease
was
initiated
Total Round-Lot Sales:
A.
weekly
State—
The
Second War
round-lot
fraction
a
Stock
t
23,925,700
86
on
transactions
no
May 16
16
___
2,581,000
2,105,800
'•
nounced
which
Exchange
713
•
which
raises
Announcement
Curb
85
;
other
but
in
mortgage from 20 to 25 years and
Washington
York
specialists-—.;
The number of reports in the various classifications
may
of reports received because a
single report may carry
and State sources or of final annual returns from the operators.)
the
present FHA limit of $300,000,000
is
638
715
as
floor
classification.
B.
needed
142
636
received
floor
Reports showing
stocks
1929
1941
estimates are based on railroad carloadings and river ship¬
subject to revision on receipt of monthly tonnage reports from district
current
North and South Dakota
be
.
May 25,
May 24,
1942
reports
solely in the odd-lot business.
(In Thousands of Net Tons)
Ohio-
to
the
specialists'
ber
WEEKLY PRODUCTION
ESTIMATED
tion's
said
121"
135
Note—On the New York Curb Exchange, odd-lot transactions are handled
solely by
specialists in the stocks in which they are registered and the round-lot transactions
of specialists resulting from such odd-lot transactions are not
segregated from the
COKE
AND
of
Reports showing other transactions
and dredge coal, and coal shipped by truck from authorized
colliery fuel.
^Comparable data not available.
§Subject to
washery
the bill increasing to $800,000,000
the Federal Housing Administra¬
increased
number
the
(Minerals
coal.
-
f
•
110
revision.
Kansas
The
•
;;
2. Reports showing other transactions initiated
3.
840,000 23,572,000 20,017,000 29,572,000
798,000 22,394,000 19,016,000 27,443,000
168,200
1,178,100
tExcludes
operations.
167
on
;
Total Round-Lot
total—_
States
999
174
showing other transactions initiated
Reports showing transactions
hand,
May 24,
"Total, incl. colliery fuel
Georgia and North Carolina-
102
President
specialists
Reports showing no transactions—
1.
109,381
Calendar year to date
May 16,
Colorado
12.876—100%
Shipments— 254,767
it
statistical
•
Tons)
tCommercial production
United
May 16
1,000
as
Week-Ended
into equ'valent coal assuming
pound of coal.
Note that most of
per
directly
Net
(In
Arkansas and Oklahoma
1942 Week
:
249,345—100%
262,616
received
transactions
New
converted
1942
Alabama
i-'
Softwoods
_
and
120,247
PENNSYLVANIA ANTHRACITE
OF
290,407
309,618
Production
not
1942
251,527
278,728
w
is
*
States
Exchange
Reports showing other transactions initiated off
4.
702).
page
475
262,221
Shipments—
>
week
and 13,100 b.t.u.
§May 23,
ments and
Previous
475
>
124,933
comparison
Wk. (rev.)
Orders
'•
3.
•
produced during the
anthracite—
(The
1942
':
6,042
-Week Ended-
Penn.
Stock
'
1942
_
Reports
/
•
■
York
May 9
feet:
Week
Production
reports
the floor
'
Mills
number of
Reports showing
Total
petroleum
1939,
"
SOFTWOODS AND HARDWOODS
1
These reports are classified as follov/s":
1,536
5,765
in
Exchange and the New York Curb Exchange by
184,455
1,868
.
;
Total
1937
226,389
all
16,
Week-Ended—
May 22,
1,721
9
separately from other sales
Bv-product coke—
sponding week a year ago, and
for the previous week, follows in
board
1941
May 24,
10,325
ESTIMATED
ended May 23, 1942, for the corre¬
thousand
1942
of
and
account
May
May 9
Beehive coke—
Hardwoods
the
May 23,
1941
1,913
barrels
supply
United
Softwoods
May 24,
to
on May 23,
1942, compared with 41% a year
ago.
Unfilled orders were 22%
than
Stock
the floor
11,480
—,
Yearbook,
10%
orders
resepctive members.
PETROLEUM
CRUDE
the
ended
New
tsubject to revision. *
unfilled
York
their
January 1 to Date
1942
>;
gross stocks was 61%
greater
OF
1,890
production of lignite.
•
The
for
weeks
The data published are based
upon weekly reports filed with the
OF
THOUSANDS
the
,
.
New
weekly
"Includes
K
Supply and Demand Comparisons
•
PRODUCTION
IN
11,340
of
equiv.
tTotal
were
COAL,
May 16,
1942
•
6,000.000 b.t.u. per barrel of oil
27% above pro¬
was
SOFT
fuel
output,.
1941
period. For the 20 weeks of 1942,
duction. and shipments
above production.
the
shown
are
\
,
.
_______
mine
average
transactions
in
tCrude petroleum-
shipments were 6% above
the shipments, and new orders 9%
the
incl.
Daily
1941;
above
ON
OF
Week Ended
Year-to-Date Comparisons
first
Short sales
figures.
1.
4ftJ
period.
same
PRODUCTION
week.
same
stock
exchanges
a
9,800 tons during the
fig¬
on
series of current figures being published weekly by the
a
2.
creased
and
147 %
round-lot
these
or
these
stock sales
Exchange and the New York Curb Exchange and
The U. S. Bureau of Mines also reported that the estimated
pro¬
duction of byproduct coke in the United States for the week ended
ESTIMATED
shipments in the
of
of
Commission.
4.8%, from the preceding week.
the corresponding week of 1941,
however, there was an increase of 361,000 tons (about 43%). The
calendar year to date shows a gain of 17.8% when
compared with the
corresponding period of 1941Va
volume
continuing
When compared with the output in
decrease of 3,000 net tons when compared with the
output for the week ended May 16/ Coke from beehive ovens in¬
production
the
members
vania anthracite for the week ended May 23 was estimated at
1,201,-
in
the corresponding week of 1935-39
average
New York Stock
:
^
Securities and Exchange Commission has made
public
showing the daily volume of total round-lot
ures
Production in the corresponding week
estimated at 10,325,000 net tons.
was
May 23 showed
10%
industry stood at 139%
of
of 1941
Lumber
regional associations covering the
operations of representative hard¬
wood
weeks, little change in trend.
2135
includes
j
short
included
Sales marked
sales
with
which
"other
exempted
are
sales."
from
restriction
by
•
"short exempt" are included with "other sales."
the
Commission
•
Thursday, June 4, 1942
CHRONICLE
THE COMMERCIAL & FINANCIAL
2136
Natl Bank
Lending Operations Under Regulation
Loren B.
the
address
Edwards'
Mr.
Street.
he
that
such
elected
that
Liberty
65
at
4)
(June
Frederick E. Hasler, newly
For some time
health has been
feels. it necessary
effective May 25.
today
meeting
monthly
its
at
State of New York
of the
merce
of New York announced
on
May 26
the resignation of
Charles G. Edwards as President,
the City
for
City, is scheduled to
Chamber of
Com¬
York
New
Service
Selective
of
rector
in
Bank
Savings
Central
The
Arthur V. McDermott, Di¬
Col.
his
curtail
he
business
been a Trustee oi
presented.
reports will be
Stating that he would confine his remarks "to
your
Allen said:
fixed
mond, Va.tl He was 56 years old.
During the 31 years of his mem¬
bership in the Curb Exchange,
Mr. Leslie served as a member of
the Board of Governors from 1922
to 1925.
He was a partner in the
read
was
whatever
a
Friedman
again without regard to the pro¬
a
single payment loan
which is subject to the regula¬
fore,
tion, is any loan to an individual
in the amount of $1,500 or less,
partner in
& Torney
which is not
and which
either
cently
elected
Board
of
the newly
Eugene W. Stetson, President of
the Guaranty Trust Company of
man
as
He
Hall
A
in
and
1918,
an
attorney
Gardiner
was
of
Hobart
S.
he
a
the
title
tion
Street
National
Philadelphia
Under
Bank.
many years
Mr.
and
Bank,
Harris Trust & Savings
Chicago and later heading the
investment firm of Hickey, Doyle
& Co. with offices
in'Chicago and
New
York, Mr. Hickey has been
serving in a volunteer capacity as
Assistant
Mr.
Treasurer
Hickey
37th
was
Division
World
first
Arthur
S.
an
of
York,
USO.
officer in the
of Ohio
during the
War.
Kleeman,
of the Colonial Trust
New
the
President
Company of
that
announces
Le-
Roy T. Tanfield, John J. Downes
and
George Onderdonk, formerly
Assistant
Managers,
have
been
elected Assistant Secretary-Treas¬
urers.
Mr. Onderdonk is
on
* ■*
...
■» t*
-*
.
M
*
York
loan for less than
mechanics
are
of
the
immaterial.
$1,500.
transac¬
It does not
difference
any
aggregate
the other in the amount of
at *67
life
a
made
loan
prior to May
6,
a
an
What I
said, in effect, is that there
been
a
new
extension
of
restrictions
on
the
loans of $1,500 or
less, apply to a loan secured by
an
individual's savings in one
form such as a
savings account,
and not to the other form such
by in¬
the savings evidenced
as
surance.
That question has been
partly answered in that we can¬
legally apply the control to
insurance savings. In the second
not
may
his
withdrew
holder
insurance
savings, it would have a further
the
that
in
effect
cancel
would
it
policy and if the insured de¬
sired to reinstate his insurance
at
some
later date, he might be
prevented from doing so as the
of
change in his phy¬
a
*
V
the
principal
bank
question appears to be one re¬
lating to FHA loans.
There
be
to
some
of South Africa,
subject to
Ltd., announced
May 29 the receipt of the fol¬
lowing advices by telegram from
the Head Office in London, re¬
The
Board
resolved
to
shareholders
of Directors have
recommend
at
the
to
General
next, payment of a dividend of
7%
for
the
half-year ended
March last together
August to 18th August,
both days inclusive.
FHA loans are
the regulation. Evi¬
coverage on an
instalment loan
exempts the
automatically
it
of
restrictions
the
from
loan
That is not the
case.
•
v;','>
the
Meeting to be held 26th August
31st
as
dently some feeling exists that
if the FHA has issued insurance
Regulation W,
'
confusion
is
it
necessitous case
a roof, or if it
of making an
uninhabitable dwelling livable,
or if it is for the purpose of ex¬
•
such
as
a
-
repairing
is for the purpose
panding the living space, it will
probably be approved.
Gener¬
ally speaking however, an FHA
loan of $1,500 or less is limited
to a maximum maturity of 12
months.:
which seems
perplexing to
that which relates to
been
have
to
banks
is
collateral loans—loans collater¬
alized by stocks,
securities.
empt
only if they are
purpose
or
bonds or other
Such loans are ex¬
for the
of purchasing securities
if they are for
the purpose of
paying off another loan
was
initially
purpose
created
,
which
for
the
of purchasing securities.:,
in
*
United States
direct
obligations,
fully guaranteed, aggregat¬
ing $12,782,079,000, were $709,027,000 more than in December,
and
$2,186,089,000 more than
the
held
amount
a
ago.
year
and indirect obliga¬
The direct
April 4, 1942, were
on
$10,665,769,000 and $2,116,310,000, respectively. Other bonds,
stocks
and
securities
totaling
$3,843,589,000, which included
obligations of States and politi¬
cal subdivisions of $2,082,182,000, increased $29,133,000 since
December but decreased $148,-
057,000 in the year.
Cash of
$635,312,000, balances
banks,
including
cash items in process of collec¬
with
other
and re¬
of $6,022,393,000,
tion,
Federal
with
serves
Reserve
$7,753,030,000, a total
of
$14,410,735,000,
decreased
$591,195,000
since
December,
of
banks
showed
but
of
increase
an
$166,927,000 over the amount
reported in April of last year.
The
1942,
total
assets
April 4,
on
$43,496,537,000,
were
in
comparison with $43,538,234,001)
Dec. 31, 1941, and $40,193,021,000 on April 4, 1941.
on
Bills payable, rediscounts,
liabilities
for
increased $8,492,000
in
000
and
borrowed
amounting to $12,270,000
money
the
three
and $9,840,-
and
12-month
periods, respectively.
The unimpaired
April
on
1942,
4,
capital stock
was
$1,511,-
895,000, comprising $159,999,000
preferred stock and $1,351,896,000 of common stock. Sur¬
plus
of
$1,396,118,000,
undi¬
vided
profits
of $515,127,000,
and reserves of $249,442,000, a
of
of
total
$2,160,687,000,
since
$27,382,000
and
cember
April last
The
$115,260,000
in¬
De¬
since
year.
percentage of loans
discounts
total
to
and
deposits
on
April 4, 1942, was 29.31, in com¬
parison with 29.71 on Dec. 31,
1941, and 28.74 on April 4, 1941.
Tenders On
/
Another question
$1,141,845,000 in
Investments
and
creased
If
were
year.
Government
^:VV-.V-;W
third
of
increase
an
other
Thfe
announce¬
discounts
and
tions held
We have been asked why
checks
$11,569,311,000, a decrease of
$182,481,000 in the quarter, but
or
increase in the amount.
to whether or not
on
Comptroller's
Loans
a
renewal or revision of such
loan provided it doesn't in¬
volve
travelers'
and
ment further said: *
any
Wall Street of the Standard Bank
t
The
life
is made by
which
loan
result
$6,000, of
$5,000 of the pro¬
toward full payment
whose
the garding the operations of this
National bank for the year ended March
Agency
a
policy.
Such new
loans of $1,500 or less are sub¬
ject to the regulation. The regu¬
lation
provides an exemption
for any loan made by a life in¬
surance
company
on the cash
surrender value of a policy, or
withdraw the funds in a
savings account and restore the
account by the deposit of new
funds at a later date.
If a policy
the
with a
of {the
:;.V bonus of two shillings per share,
House Association for 11 years,
both
payable in British cur¬
between 1930 and 1941, refusing
rency and subject to British in¬
to accept another term in the lat¬
come tax, making total distribu¬
ter year.
At- his death he was
tion of 14% for the year ended
active as a director in more than
31st March, 1942; to appropriate
a score of
financial, insurance and
£50,000. to writing down Bank
industrial corporations, including
premises and £150,000. to the
the Federal
Reserve Bank, the
Officers Pension Fund, carrying
Philadelphia Savings Fund So¬
forward a balance of £155,509.
ciety, the Provident Mutual Life
Bank's investments stand in the
Insurance Co., the Insurance Co.
books at less than market value
of North America, the Philadel¬
as
at 31st March last and all
phia and Reading Coal and Iron
Co., the Midvale Co., the Pennother usual and necessary pro¬
road
Corp.,
the
Pennsylvania
visions have been made.
Railroad Co., and the Baldwin;
Transfer Books will be closed
Southwark Corp.
»
New
value of
surrender
insurance
seems
served as President
Philadelphia
Clearing
«
cash
credit
outstanding of $396,668,000, and
deposits of domestic and foreign
banks of $6,843,042,000.
sical condition.
has
Mr. Wayne
The
In part he added:
of
place they represent a different
class of savings.
An individual
from 5th
m
payer."
$1,000 in¬
regula¬
$1,000,
is subject to the
ceeds goes
leave
with the National forces..
»
•
in
I refer to the loan secured by
note in the amount of
Federal Reserve District.
Bank
in
of
to
National
"rent
which amount
1914.
1, elected Bank, organized in 1803, grew to
■a*
Vice-President
of
the
Con¬ be one of the leading banks in the
tinental Bank & Trust Co, of New United States and the largest fi¬
York.
Formerly associated with nancial institution in the Third
the
amount
$1,000—or whether the indebt¬
edness is evidenced by a new
June
on
the
Wayne's lead¬
the Philadelphia
ership
active in the banking and security
was
in
whether
indebtedness of
$6,000 is evidenced by two notes
—one
in the amount of $5,000
the
Girard
merged
institutions,
was
changed back
original
business,
new
The
Mr.
again chosen President of
was
Officers of the company.
Hickey, for
bank
relates
have
Don C. Kreger as Assistant Trust
John F,
time,
of the old indebtedness.
lin-Fourth
a
and
recently,
looked upon almost as
cases
This is true because it is
crease
tion.
the
the com¬
Philadelphia-Girard National Bank. Two
years later, upon the merger of
this organization with the Frank¬
and
Lockett
to be most confus¬
this
tained the presidency of
bined institution — the
he
Personal Trust Department
ments
the
12
however
delphia National, Mr. Wayne re¬
& Reed until Jan.
when
when
of
maximum
a
seems
ditional
He
Bank
consolidated with the Phila¬
1926
In
some
is
$5,000 "Wished to borrow an ad¬
the
of
in substantial volume in the banks
comparatively
that
credit
the
The question
at
the
to
advanced
Girard National in October,
entered the
of the
Guaranty Trust Company. He was
appointed an Assistant Trust Of¬
ficer on Dec. 19, 1929.
Mr. Stet¬
son
also announced the appoint¬
1928,
16,
and
President
elected
was
Ward-
then with Davis Polk
well
in
through various positions until he
Larkin, Rathbone & Perry from
August, 1925, to Jan. 1, 1927. He
was
Bank
National
the staff of
on
Philadelphia,
to
but
basis
of
to a
problem which may probably be
most
clearly described by an
example: If a prospective bor¬
rower who is
already indebted
ing
Wayne began his banking career
in 1890 as a clerk with the Girard
re¬
ceived degrees from Colgate Uni¬
versity in 1922 and from Harvard
Law School in 1925.
Mr. Jones
was
of
be renewed on
may
period
make
native
the
with
enough
instalment
which
1914.
graduated from
was
loan
limited
National Bank and
predecessor institutions since
its
18, 1936, was born in
since June
Erasmus
company
regulation," said Mr. Allen "is the
question of its effect on a class of
loans which has come into being
287,746,000 and $7,721,120,000, re¬
spectively, United States Govern¬
ment
deposits of $1,479,538,000,
deposits of States and political
subdivisions of $2,735,059,000, pos¬
tal savings of $14,320,000, certified
and cashiers' checks, cash letters
company
months.
Philadelphia
Personal
the
of
Officer
Brooklyn.
been
has
who
Jones,
Trust
fusing problem under the revised
insurance
total
con¬
to the time of his death.
had served as President of
con¬
off
familiar
reported
4, 1942, consisted of demand and
time deposits of individuals, part¬
of paying
an
position
advisory
that
in
he
and
up
Mr.
Vice-President.
a
Board
"Probably the second most
bank for the purpose
ment
created post of Chair¬
the
of
tinued
announced on May 28
appointment of Robert A.
New York,
Jones
Bank
note.
provisions of the regulation to
know that such a single pay¬
January, 1941, the Directors of the
institution named Mr. Wayne to
University, Middletown, Conn.
the
National
Philadelphia
Wesley an
of
demand
or
amounted to
It is pointed out
decrease of $77,-
1942,
nerships, and corporations of $20,-
any
bly
banking for over 50 years. When
he
retired as President of the
member of the
a
Trustees
in the scope of the regulation.
turity: I believe you are proba¬
Hill, Philadelphia.
He was
old. Mr. Wayne had been
associated
with
Philadelphia
Vice-Pres¬
Chemical Bank &
Trust Co. of New York, was re¬
after
with¬
comes
By the terms of the regulation,
is limited to a 90-day ma¬
68 years
the
of
on or
be evidenced by
may
time
a
made
not it
or
it
nut
Wandell M. Mooney,
It
May 6.
instalment loan
an
was
our
which is the determining factor
visions of the regulation. There¬
with the Na¬ 1938. In February of that year he
tional City Bank. Daniel Schmeid- was a partner of Berdell Bros,
and continued there until his re¬
ler, Assistant Secretary of the
tirement in December, 1940, be¬
Brooklyn Trust Co., President¬
elect
of
New, York
Chapter, cause of ill health..
awarded the prizes, and William
Joseph Wayne, Jr., retired Pres¬
J.
Ahern, Assistant Vice-Presi¬
ident of the Philadelphia National
dent of the Bank of the Manhat¬
Bank
and
of the
Philadelphia
tan Co., welcomed the graduates
Clearing House Association, died
as President of the Alumni Asso¬
on May 26 at his home in Chest¬
ciation.
v. ;■
ident
That is to say, such a
may be renewed again and
loan
A. Fernandez,
Jose
re¬
payment
prior to
made
was
or
May 6.
in
1936,
May,
single
any
which
loan
dissolved in January,
firm
which
by
became
of
firm
the
In
of
vision
the renewal
on
4,
$1,000. that this was a
generally 279,000 in the amount
being a new by national banks on
of whether
place, there is the
regulation places no restriction
continuing until its dissolution
the "Future of
Banking"
Foreign
In the first
joined the firm of C. D. Halsey &
Co. as a partner in July, 1924,
1934.
-
or
question of single-payment loan
which is new to the regulation.
/The Board has ruled that the
Salisbury,
graduates as President of the November,
Mr. Leslie
American Institute of Banking.
loans
any
purposes
April
$39,477,493,000.
Dec. 31,
operation as
loan of $6,000. However, for the 1941, the date of the previous call,
purposes of the regulation it is but an increase of $3,190,012,000
the
amount
the amount of increase—the ad¬ over
reported
on
ditional extension of credit— April 4, 1941. Deposits on April
in
clearly
"agricultural" purposes unless
they are for the purpose of
purchasing listed articles.
Leslie & Co.
from October, 1918, until his re¬
tirement
in
January, 1924, and
of
firm
affect
"business"
for
J, charter
Exchange, died on May 28 at the
Johnston
Willis Hospital, Rich¬
the
The class paper on
a
have
on
the amount of
in
on
the 5,115 active national banks in
the United States and possessions
You and I think of it
that the regula-
mind
in
does-not
tion
New York Curb
the
of
member
Leslie,
R.
George
President
of New York Chapter, American
Institute of Banking, presided at
the commencement of the Chap¬
ter
at
the
Marble
Collegiate
Church on May 28.
Dr. William
A. Irwin, Educational Director of
the American Institute of Bank¬
ing, delivered the principal ad¬
dress on "Rebuilding A World."
The invocation was read by the
Rev. Charles J. Haulenbeek, As¬
sociate Minister of the Marble
Collegiate Church, and George T.
Newell,
Vice-President of the
Manufacturers Trust Co., greeted
let's
discussion,
/
National City Bank) as
credit
"
But, before getting into that
1933.
few, of what
a
Currency
announced
Delano
May 21 that the total deposits of
to us to be, major points of confusion under the regulation in
lending /.6peratibns/Vv:flffi.%V:v,>^
appear
V
Preston
the
of
Comptroller
talk before the New York State Bankers
a
Association annual meeting in New York on May 25.
the bank since
(with the
Joerndt
V.
Clarence
credit control in
consumer
ac¬
Mr. Edwards was elected
President, will preside at his first tivity.
meeting, the business session of President of the Central Savings
which begins at noon.
Several Bank on Jan. 13, 1936, and had
Allen, Manager of the Credit Department of the Federal
of New York, discussed Regulation* W relating to
Bank
Reserve
:
Loans Show Decline
Discussed At N. Y. State Bankers Heating
^
Deposits,
Sydney 5Y2s
Tenders of City of
Sydney, New
Wales, Australia, 25-year
sinking, fund gold bonds,
due Feb. 1, 1955, will be received
at the corporate trust department
of City Bank Farmers Trust Co.,
South
5V2%
New
York,
amount
fiscal
agent,
in
sufficient to
exhaust
any
funds
in
available
the
sinking
fund.; Offers to sell at prices not
exceeding 100% of principal and
accrued interest, must be submit¬
ted in
writing
June. 17..
on or
before
noon
@FedFRASER