Full text of Commercial and Financial Chronicle : June 5, 1947, Vol. 165, No. 4600, Section 2

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ESTABLISHED 1S39

Final Edition

In 2 Sections-Section 2

The Commercial

an a

Reg. U. S. Pat. Office

Volume

Number

165

EDWARD

HEFFERNAN

M.

EDITORIAL

=

1

Specialist likens estate planning to building a home, in which an
architect is required to draft general plan and work out details.
Calls for cooperation of professional estate planner, lawyer and life
insurance underwriter in providing individuals with advice and in¬

Outlook

profession, so
thing is taken1®
of."

care

Many trage¬
dies

——

good

have

of

situation

unfortunate

this

found

oc¬

Examples

Estate Planning.

are

in the work of all
counselors,
trustmen,

daily

curred and are

financial

occurring

be¬

lawyers and life insurance under¬

this

writers.

of

cause

all

Estate

too preva¬

lent and

hensive

com¬

ence

has been

that

many of
these
same

today

compre¬
that any

has not consulted

for the future.

resulting in great
suffering to the loved ones of
these very self-satisfied or care¬
are

and

prices
costs

complex economy
it is unwise either to attempt to

even

will

members

their

of

dependents

other

families

by

and loan

ciations

take

to

to failure.

asso¬

For

active interest

future.

conditions

Business

today

may

realize or understand what they are—
well be doubted whether any one knows precisely
how they may be controlled or rendered impotent.
Certainly
the dispassionate mind must doubt whether the various na¬
tions, including the United States of America, are managing
their affairs or dealing with the other nations of the earth in
a way to give a great deal of assurance of an enduring peace.

(Continued

■:"

■'

was

it

the epoch

the

was

son

it

of

sea¬

sea¬

Dark¬

son

of

ness,
Weimer

M.

it
was
spring of

the

it

of

winter

the

we

nothing

despair,

before

everything

before

we

us,

the destinies of too many

had

we
were

us,

(Continued

From

in

Vice-President,

sort, the period was so far like
that some of its
noisiest authorities insisted on its

attacks branch banking as monopolistic and holds the
been unsuccessful. Says group banking is a disguise
of monopoly and holds local independent banking not only con¬
forms to our decentralized political system but furnishes better

(Continued

Mr. Bryan

system has

and

more

a

political bodies.
ble.

man-made

that is fatal to

cancer

and the

insatia¬

government, by means of the
Authority, actu¬
ally took over the ownership and
operation of some of these prop¬
erties.
Let us beware lest this

Tennessee Valley

means

controlling

foreshadows coming

eliminat¬

and

this, but
frequently

You

are

familiar with some of

done.

In

the

characterized
the
companies that were thus
punished.
They were evidence
that "All power corrupts; abso¬
lute power corrupts absolutely."

cases

of

the

Yet from the standpoint

wait

until

trusts

ir-

such

we broke
them up into

damage, all these were as sur¬
which are relatively
easy to cure. Also they monopo¬
lized produicts that are not indisensable. In fact, tobacco, oil, rail¬
roads, and electricity are all com¬
paratively new, and mankind got
along without them for untold

face cancers,
W.

co,

smaller,

J.

Bryan

com-

petitive units. The railroads were
placed under strict regulations.
The death sentence was given to
holding companies, their
holdings scattered, and their ac¬
tivities regulated.
Furthermore,
utility

centuries.
But

tions

even
were

the

ancient

unable

to

-netftet.

*Ap address by

of poten¬

tial

as

oil and tobac¬

t

the

by

New

Dean

J., May 23, 1947.

Editorial

11ndependent Bahkers ' Association
CoinvehtioV St. Louis,-Mo:, May
24, 1947;




•

civiliza¬

get

along

the lifeblood
of any
economic system.
And since banks are the deposi-

without

Mr. Bryan at the

money.

(Continued

It

on

is

page

6)

am

Page

Regular Features
From.

Washington Ahead

..Cover

Moody's Bond Prices and Yields
Trading oil New York Exchanges...
NYSE Odd-Lot Trading
Items

meet-

About Banks and Trust Cos..

10
13
13
16

n g,
after
dealing
with
company's

ing

report
etc.,

a

them,

on

annual

as

Commodity Prices, Domestic Index.

Carloadings
Weekly Engineering Construction...
Paperboard Industry Statistics
Weekly Lumber Movement

Weekly

Association

Price

Index...

Weekly Coal and Coke Output

12
15

13
15
15
11

10

6

Weekly Steel Review.

di¬

of

usual¬

ly

feel, and rightly so, that there

resolution
the

gold in

to

But

effect,

and

I

to

realize
Carlisle Bargeron

10

that

we

now

14

live

in

one

14

Metals Market

12

Changes in
Stock, N.

Holdings of Reacquired
Stock and Curb for

Y.

April
Commercial Paper Outstanding on

Dollar Acceptances
standing on April 30

Latest Summary

Out¬

of Copper Statistics

12

;12

me

the

natural

of Ameri¬
propaganda
s^^e.

ambitions

enterprisers

can

as

for their global WPA

to the extent that we
You can't get any enlighten¬
the living standards of
ment
on
it in
Wasmugton, from
other peoples of the world, so will
our
own
living
standards
be the State Department, from Pres¬
ident Truman or from, Congress,
lifted."
world
lift

I

13

April 30....
Bankers'

At presert, it seems
that the Leftists are using

complished.

paraphrasing:
"We

"them thar hills" of the

undeveloped areas.
there should be an under¬

standing of how this is to be ac¬

am

Weekly Crude Oil Production

Weekly Electric Output.

is

world's

do,
then
adopted
a

Moody's Daily Commodity Index....

Non-Ferrous

behind

it, that they are, in¬
behind ambitious schemes
for the Middle and Near East.
I
am sure that I don't know if this
is true but I can understand, and
have reason to believe, that there
are
American
enterprisers who
are

deed,

rectors
3

Review

Fertilizer

"influential

mak¬

affairs,

boards

State of Trade
General

initiative, that Big Bus.'ness and
financial
interests"

i

the

of the

attention.

surprised that it hasn't received more

This

Cover

See It...

BARGERON

the most mysterious shenanigans going on in Wash¬
ington and New York these days have to do with the vague business
of how we must spend billions to habilitate and rehabilitate the
earth. A few months ago, Standard Oil of New Jersey, adopted an
unusual resolution at their annual board of directors' meeting.
I
Perhaps,

GENERAL CONTENTS

As We

of the News

By CARLISLE

Jersey

Savings and Loan League at At¬

News,

events.

the practices which

reparable
damage
is

-

before

Weimer

the

knowledge

ing

address

Ahead

9)

economic and

our

This takes various forms, works secretly, is

monopoly. Yet
have
the

too

an

on page

I refer to

•we

of

*From

lantic City, N.

adequate service to the community.

There is

Washington

the present period

Nashville, Tenn.

Third National Bank,

4)

on page

had
all

going direct to Heaven, we were
all going direct the other way—

By W. J. BRYAN*

:

We have become too heavily involved with
peoples, and have won the suspicion,

persistence.

was

hope,

and

good while past, that we simply cannot afford to shut our
eyes to a depressing and threatening world situation into
which we have thrust ourselves with such violence and such

Light,

the

was

Strong

who today keep saying that we must "keep
strong" if we are to be reasonably safe in this world-are,,
therefore, on strong ground.
World events are so shaping
themselves, and have been so shaping themselves for a

of incredulity,

Arthur

Free Banks, Free Enterprise
Free Men

Must Be

The many

the epoch
of belie f, it
was

,

8)

on page

and it may

'IK

ning really begins with life itself.
Present-day life is so intricate,
due in part to our present tax

of

few appear to

too

plan.

considered.

part we doubt if any sort of mechanism is likely
deciding factor in matters of peace or war in the
Far more fundamental forces are at work, and only

our

to be the

in local affairs.

a cue from that wellproverb, "We can be cer¬
tain of only two things in life,
death and taxes," our Estate Plan¬

and

means

more

in different localities

vary

and urges savings

known

things rather than
best provisions for

the

struggle to the finish with Russia, or with "Communism,"
with "totalitarianism" is usually "inevitable" if this or that
is not done, or if some other course of action is not discon¬
tinued.
But one suspects that more and more people are at
least beginning to believe that current efforts to find a rea¬
sonably sure way to avoid war in the future are destined

efficiency in building labor. Con¬
tends future real estate prices

Taking

plan "piece-meal" or to be con¬
cerned only with the transfer of
property upon death. As a matter
of fact, most individuals are doing

making

lowered by

others
titanic

or

construction

says

be

can

:

Under today's

very

es¬

Sees downward revision of

•

less individuals.

these

and real

trends in business
tate.

Strong

apparently growing disposition to speak
III as "inevitable."
Of course, many who talk
an

in this way are doing so for the purpose of persuading
to take some line of action desired by the speaker.
A

outlines potential

Weimer

Dean

is

of World War

It is my experience well remind us of the famous
that most people consider
only statement by Charles Dickens in
"A Tale of Two Cities":
certain isolated phases of Estate
"It was the
Planning, such as making a will,
best of time,
or purchasing some life insurance,
i t was
the
or
transferring a part of their
worst of time,
property. Seldom does a person
it was the age
connect these steps with the need
of wisdom, it
for fitting them into the overall
was the age of
pattern of Estate Planning. Other
foolishness
it
equally important factors are not

Ill-planned
estates

so

rare

School

an

estate

people have
neglected
t o
plan definitely
Edward M. Heffernan

is

experienced Estate Plan¬
ner
has considered carefully all
factors involved in formulating an

with

experi¬

My

it

individual who

feeling.

mon

Planning is
that

There

of Business

who are engaged
frequently hear the comment, "Why, every¬

in that

University

Indiana

Dean,

discussing Estate Planning with people, we,

In

How to Be

By ARTHUR M. WEIMER*

planning.

Lists consecutive steps in proper estate

struction.

Copy

We It
See

As

Real Estate

Trust Company

Assistant Vice-President, Ann Arbor

a

Business and

Estate Planning
By

Price 30 Cents

N. Y., Thursday, June 5, 1947

New York,

4600

and

up

am

told in every

the

ter

that

out

money

pan,

Leftist

business

of

quar¬

pouring

to Europe and to Ja¬

is not strictly of their

own'

the

latter

of

Which <is. frankly
to,! find out

baffled and is trying
what

is

cooking

(Continued

as

much

on page

as

9)

the

g

time"

Are
"If

know
is

*

is

Doctrine

do

not

the American

America
country which is

what

pay
off every
threatened with

to

filtration?

Shall

ing

and

of

into every corner of
people threaten

money,

national

which shows

try, big and little,

Shall

fill

hole that Russia con¬
tinues to dig for us around the
periphery, of
this
aggressive
power?
If we are, we are com¬
mitted to an unlimited policy of
John W. Bricker
financial and, perhaps, military
A support in a hundred places. The
cost is incalculable.
This constant sapping at the

be

who

wish

there

demolished
war,

'

troops

in

that a
would
provide the following benefits: -.
(1) It would shorten the time
in

be

must

of
.

in

on

days;-,of•;

in spineA'ctfsbs;!
underground of

adequately ?; protected
Critical; war. materials
stockpiled

the future.

and

now

?

,

,

in

?vV;7'"Vrv

(5)
A
striking Air Force —
Spearhead
of
our
professional
armed services, this force would
be charged with the crucial mis-;
sion of "defense by attack."Its1

Group headed by Dr. Karl T. Compton favors a six months' compul¬
sory period for youths from 18 to 20 years.
Points out rapid and
devastating character of future warfare and says universal train¬

which

Our

force. could

decentralizing^h^^mqsjt j

otherwise

for

Specifically, we believe

in? inflicting

first

and

,

universal training program

approach? to

the

counterattack

complete victory.

scien¬

or

father
numbers
of

would be quickly
home defense, for

for

effective

start should beftnadenow;

a

facilities.

Reports
Military Training

trained

him ^

re¬

increased,

that

decreased,

-

our

upon

vital. plants and,
toward building

deserve.

President's Gomntissicn

us

than

buri
shores-.
Because, of the?, danger
that production centers;would be

disposition every¬
the heed to such strictures that they

where to pay

worthless

be

preventingv his

greater

were,

unless

swift retribution

toward

We

vinces

he

effective,

endeavored

in

case

We* have

interest..

national

the

realistic

take

to

ac¬

losses the youth and

count of the

would suffer both eco¬
' and
educationally if
the training period were too long,
and of the danger that it might
be
worthless
for
military pur¬
society

nomically

if it were too short.

poses

Six Months' Basic Training

basis

the

On

fighting

mobilized

program

mended reduces,

ject: this, conclusion because our
analysis of the possible types and
conditions of future warfare con¬

foundation.
Readiness

We

to

and national security.

herein
recom¬
in so far as posr>
sible, the disruption of normal
community and family life, which
inevitably attends the calling of
young men from their homes in
The

in¬

other

and

itary forces in wartime.

is

progress

would

responsible place in world
Apparently that is the policy of those
off against us in this evolving world."

set

are

value

no

bomb

atomic

world peace

contribution

its

of

basis

the

development of

eliminated the need for mass mil¬

strongly

matched by in¬
dustrial readiness for the prob¬
lems of war that may come with¬
out warning at supersonic speeds.
Weapons that were not in being
and
in
the
possession r,of
our,
troops when an aggressor struck

country can lead only to a

—Senator John W. Bricker.

of

tific

weakened America, a less

leadership.

science

training program;

struments of mass destruction has

(4) Industrial mobilization. The
development of new weapons- will

every

our

We

Industrial

back¬

we

the

required

internal resistance to the com¬

an

munistic doctrine?

economic wealth of

warfare.

universal

a

namely, that the

applied research
an:f specifi¬
cally-add our recommendation in
favor ofr legislation to-establish a

of every coun¬

the economy

ster

instrumentalities,

potent "new

of

by the armed forces,

Shall we bol¬

communistic?

people than the ef¬
science in provid¬

We have given

-

of both basic and

the world where
to go

obtained, and we do not present
Warfare
i;hese as in any way a justification
careful attention
for, the adoption of a program
to the1 argument most frequently
that must be considered solely on
put forward against the adoption
Atomic

of

Effect

away

speed of air

indorsa
continued interest in and support

arms

pour

of

fectiveness

communistic in¬
we

taken

been

has

us

(3) Scientific research; and de¬
velopment;-No lesson of Woild
War II was more convincing to

foreign

on

certainly if there is we
it is, does it - mean that

and

going

Truman

a

that

by the deadly
and atomic attack.

We, Indeed?

there

affairs,

from

Thursday, June 5, 1947

FINANCIAL CHRONICLE

THE COMMERCIAL &

(3030)'

of-all" these

con¬

we recommend that
it be made the obligation of every

siderations,

war.

reaching the age
.18, or upon completing or leav¬
ing high school, whichever! is
training that would be the basic,
later,
to- undergo
a
period of
prerequisites; for technical, spe¬
cialized- or unit training
in an training that; would fit him ;for
service to the nation in any future
emergency;;: and
training saves
emergency.'. This
period should'
generally ;.be divided into two
;r(3) It would make possible an
first would
be six
effective National Guard and or¬ parts..,! The
months of basic training in camps
ganized > Army, -Navy, Air -''and
or aboard skip:,.The second would
Marine-Reserves- capable of rapid
include a! number of alternative
absorption into the professional
programs or options, one of which
military establishment in time of
would have to be chosen on conrwar.
~
"
pletion of the basic training.
(4) It would improve the effl*
The' general aim of these op>ciency, quality and alertness of
tions would be
(1) to organize
the regular forces in peacetime.
men
into units, such as those of
(5) It would help produce qual¬

give

would

.:(2)- It

essentials

the

men-

our young
of
military

young man upon

of

,

,

.

ified

reserve

officers in

numbers

the National Guard or the reserve

meeting the components, in which they could
their Jbasic training up to
officer requirements of the regu¬ keep
date, move on to advanced and
lar services and the civilian com¬
would

that

assist

in

group training, and be available
job would be to stop the enemy's,
ponents and to staff' the forces
for effective use in time of war,
first onslaught- and to hit back}
needed after M-Day in any fu¬
at him with crushing force.
and (2) to give advanced educa.We: ture crisis.
tion or training to those who are
believe
that
an
ing offers only method to insure sufficient number and dispersal of
aggressor's re¬
(6) It would present additional
luctance' to start a war, and his
qualified for and desire to tak^
trained men, if huge standing forces are to be avoided.
Notes
opportunities for inculcating spir¬
such training, including training
handicap in prosecuting it suc¬ itual arid riioral ideals in
additional means for balanced social security.
support
that
would
provide
a
steady
cessfully if he did start, would of the American
democracy.
- - ■
stream of young officers.
On June 1, President Truman released the summary of findings be
in
direct proportion
For the
to the
(7) It would establish a pool of most
of the Advisory Commission on Universal Training which he ap¬ power and readiness of our mo¬
part these options could be
youngi physically fit and trained
bile striking force.
Its personnel reserves who could be mobilized performed in connection with, or
pointed about six months ago to<J>
at the same time as,, the pursuit
inquire and report upon the ques¬ atomic bomb to the incalculable would have to be highly trained
,

tion.

This Commission, headed bj

Dr.: Karl

of

the

T.

Massachusetts

Technology,
men

and

President

Compton,

Institute

consisted

one

of

of

eight

Besides Dr.

woman.

war-has elim¬

horrors of modern
the

inated

of

concept

of

zones

and

its equipment would have to
most
advanced
in
the

the

be

world.

safety in any future attack on
this
country.
By making
war
(6) Other Elements of the Reg¬
universal, devastating and imme¬ ular Army, Navy,
Air" Forces,
diate in its impact, new develop¬
Marine Corps and Merchant Ma¬

-if

a

future crisis arose.

It

(8)

trained

of

would provide a .large
in every commu¬

nity capable of withstanding and
dealing
with,
the
problems of
civilian defense and mass disaster

,Compton, the members appointed
resulting from severe bombing at¬
by the President, all of whom ment in warfare have created a rine—Long-range
operations of tacks,
signed the report were, Joseph E. need for trained men in every; great destructive power and- con¬
(9) It would provide a mech¬
Davies, Harold W. Dodds, Tru¬ city and town — men who would; trol of strategic bases'might be
anism that could be converted im¬
man
K.
Gibson, Jr., Daniel A? be available at once in an emer¬ decisive elements .in determining
mediately into a wartime select¬
Poling, Anna M. Rosenberg, Sam¬ gency.
; the outcome of a war.
Since we ive service system, and it would
uel
I.
We do not wish, however, to
Rosenman,
Edmund
A.
could not under our Constitution; make
possible a continuous in¬
Walsh, and Charles E. Wilson.
exaggerate
the
benefits
that and would not under our concep¬
ventory of military skills, apti¬
The text of the summary of
would be derived from the es¬
tion
of
international
morality tudes and leadership qualities that
findings
and
recommendations tablishment of a universal train¬ launch a surprise attack against
could be used advantageously in
follows:
ing program. It offers no cheap any country
without an open- making m.i 1 i t a r y assignments
Only declaration of war, the enenmy
After nearly six months of the or easy ticket to security.
..

intensive

most

study

the

mem¬

bers of this Commission have
rived

at

the

unanimous

ar¬

conclu¬

sion that universal training is an
essential element in an integrated
program

tended

States

of

to

national security in¬
safeguard the United

and to enable

to fulfill

us

combined

when

anced

security

taking

up

less

responsibilities

of world peace and

the

to

the

conviction

of

from

the

following basic beliefs:
effectiveness

of

United

the

Nations is the belief of other
tions

that

selves
to

the

of

stripping

are

we

strength

na¬

our¬

necessary

moral leadership
and are thus encouraging powers
that may not share our peaceful
aims to plan campaigns of ag¬
gression.
We believe
that the
adoption
of
universal
training
would reassure the peace-loving
support

countries

our

of

the

world

and

en¬

hance the influence and authority
of the United Nations.
Second—Universal

fers

the

which
ent

we

training of¬
method
through

only
could

number

insure

and

suffici¬

a

dispersal

of

trained military man power with¬
out

overburdening
through

economy
nance

against

us

rights

.

,

'

.

of
.

i

that

the

of

light

exist

in

National

of the

the

Security

world

today

no

the country's
the
mainter

of af.KUge standing Army,
Marine

Nartry !Air
Force
and
• ..
Corps; f".
Third—'The
addition

.

of




the

for

would

complete unless it en¬
all of the following

be

compassed

national

ingredients:
»
(1) A strong
one

The

vigor

on

to

be

■

Replacements would have!
available

speedily in large

Maintenance of planes,

numbers.

equipment

mechanized

which all- our

preparations
-depend.
and vitality of our

people, are of paramount importance, not only^ for ourselves but
also for millions,subject to the

of ~ totalitarian • philos¬
ophies abroad.
"
- : •
(2) A co-ordinated intelligence
service.
Only through the most
diligent collection and the most
exhaustive analysis of every scrap
of data that might shed light on
the war plans of a potential en¬
emy
or
the ' extension
of -his
sphere of influence can we hope
to. make up'for the ."cushion of

and

the

of highly technical weapons
and devices developed by science;
host

the need for specialists,

increases

supply troops
supply lines.

(7)

and

Unification of the Armed

planning
kind

of

or

preparation

defensive

and

for

offensive

(8)
reasons

command.

Training —For

Universal
discussed

at

length

in

report, we unanimously rec¬
ommend. the adoption of univer¬
sal training.
We do not believe
there is any other way of guaran¬

our

teeing that the armed forces will
be able to count on a sufficiently

speedy flow of trained men to win
war
if large-scale fighting for
bases or invasion of the enemy
■

are

required.

These

pre-trained young men would be
ready to cope with the unprece¬
dented problems of internal se¬

structure would

which the whole

military utility.
It is
recognized that entrance into this
part of the program will come a.t
be

of

no

age when most young men are

an

moving from high school to coir
lege

or are

tion.

entering

upon a voca¬

Inevitably, the necessity for

spending six months in full-time
military
training
will
involve
interference with these

some

tivities.
For

ac¬

'
reasons

some

set

forth

in

It would help to channel this
report, we believe that this
into programs of sci¬ situation can be handled best
by
entific and vocational training in
establishing May 1 and Nov. 1 of
fields important to national deeach year as the dates on which
young men would come into the
(11) It would bring together
,(10)

men

young
of "the

nation to "share a

program.

Americans from all parts
common

A Three Man Military Training
Commission
We

contributing

unity,

,

that the entire
training program be placed under
the general control and direction

national

to

thus

the foundation of our se¬
'
-

recorpmend

of a commission of three members,
(12 It would give greater mil¬
reporting directly to the President,
itary strength at less cost than
and composed pf two civilians and
would be provided by exclusive
one
military representative.
In
reliance on a large standing mil¬
suggesting that the commission
itary force, since it would be im¬ have a civilian
majority, we have
possible to ohtain enough vol¬
been guided by our deep convic¬
unteers for the professional'force
tion that this undertaking must
required
for
adequate
defense be a civilian effort
resting ok the
and since the cost would over¬
understanding,1 interest and 'sup¬
burden the national economy even
port of the American people, and
if such a force could be raised.
surrounded by all .the safeguards
that the civilian

Integration of Program

a

homeland

months of basic training is

regarded by the Commission as an
indispensable foundation without

war come.

young

the curity.

strategy required for modern war

)

education.

further

Six

unbreakable experience and to fulfill a com¬
mon
obligation to their country,

Forces—There can be no realistic

without unity of
our

democracy, as expressed in im¬
proved health, education, produc¬
tivity and morale of the American

deception

prise!

healthy

This is

security requirement.

It is the bedrock

military

security

.

united,

and informed nation.
number

would have the advantage of sur¬

conditions

program

First—One of the deterrents to
the

aggressor

violating the
powerful nations.

Ingredients
In

stems

it

cause

success

the United Nations.
Our

bal¬

would

an

arms

•

other
a

of strength

from

or

i

our

system

deter

to

necessary

the

into

the measure

provide
from

with

enter

that

elements

should

of

occupation in civilian life

any

or

group

In

submitting

a

intended to
military benefits,
gram

mindful

training

achieve
we

have

of the need for

wish.

■

In

pro¬

furtherance

these lying principle,

of
we

this

under¬

also

recom¬

that there be a general .ad¬
visory board, representative pf
the public and including leaders
in the field of recreation, religion,
education and health, as well as
local civilian advisory committees
to each camp commander and a
corps of full-tim6 civilian inspec¬

been

mend

integrat¬

ing into the program, without sac¬
warfare would rificing its essential military ob¬
jectives,
the -maximum advan¬
bring—problems of such magni¬
tages to health, education, char¬
tude
that
our
failure
to meet
acter development
and training
them at once, wherever they de
for citizenship. We recognize that
veloped, might lose us the war there are definite limits to ..the
non-miilitary benefits that can be
overnight.
; :
L; it

community;would
:!l ; i

curity that atomic

tors

whose

'

to

see

that

function
.

iti would be

effective, democratic

THE COMMERCIAL & FINANCIAL
CHRONICLE

"NumSer 4600

Volume 165

(3031)
training is* provided in all.train¬
ing establishments*in accordance

.

with' the

policies

the commission.

We

possible

American
'moral
"in
•

•

to

youth

and

camps.

mental

unit

pattern and set

that

at

the

Fort

Knox

Total

the country at laj-ge was main¬
tained at the high levels which have prevailed in recent
weeks. In
several manufacturing lines spot reports told of
lay-offs and shorter

has

a

stand¬

ment

ployment, though job openings continued
In

the

body of the report we
make
special
recommendations
for handling conscientious
objec¬
tors, as well as others who do not
'meet the requirements of
military
type training.

ployment

world

'the

conclusion

that

there

part not only

try in

involves

on

invitation

an

past

prices

orders

11%

week

a

quate,

.the

ruling

there

restriction

the

on

lifts

allowances"

in

against

of

these

said that relation

controls

would

also

ap¬

ply to all permits already issued
for housing to which the liberal¬
ized rulings could be adapted.
The

following are the Housing
regulations remaining in effect
after May 31, it was indicated in
the "Times" Washington advices:
The

construction

limitation

'

order

under which

Federal

ap¬

erection

of

non-housing type

a

building.

Mr.

Creedon

de-

-

scribed this

as

"the keystone of

'

the

housing program,"

which

"there

scramble

would

for

without

be

mad

a

materials

and

home-building would suffer."
The veterans' preference
pro-

vision, whch requires

.

'

of

a

builder

house not intended for his

a

own

to

use

give

veteran first

a

U.

buying

property.
The

requirement that houses

year-round

occupancy.

.

'Rent

-

ceilings

struction

which

on

new

limit

con¬

rents

to

'

$80

a

Preliminary

month
or

an

on

construc¬

new

average

of $80 for

contracts"

housing

"guaranteed
for

and

.

•

-

iron

market

313,702 and 113,283, for
the U. S. and
13,496 and 8,745 for
Canada in April.

,

The

on

and«?•feast-rirori :soil

-through^Juhe'30,St'and*
tions -for

a

few

scarce

pig

pipe

alloca-

materials.




outlook

than the
ance.

will

for

June

is better

industry's May perform¬

However, April
to

prove

first six

be

so

of

in the

likely

very

the

months

especially

best

the

the

of

case

of trucks.

as

bank

to

rise

in

approaching

weddings,

-and

somewhat

by

■

usual

the

.

"

'

-

retail

peak,
signs of
according to

•

The current

zine

strength, the

suggests,

.

forerunner

not

may

of

graduations,1

the

was;

past week

weather

in

many

but,

of stabilization effects

the

Pittsburgh

Some large con¬
already resisting the
stronger tone and are restricting
some shipments.
Steel output the past week con¬
sumers

annual rate of close to 88

an

lion

tons.

a.

to

curs

week

nothing-oc¬
seriously
the

reduce

present

which

rate,

is

mil-!

If

year.

the

scheduled

present
97;0% of

at

rated capacity, the yearly output,
states "The Iron Age," would ap¬

proximate the wartime trecord of
89 million tons. Even though this
level is not reached, it is now
almost certain that all previous
peacetime records will be
smashed.

""Although

private talk in the
steel -industry leans towards the
opinion that steel demand will be
slower by the end of this year or
in the first quarter of 1948, there
are

in

retail trade

scale-contraction

in

the

current

market

"picture, the above
authority points out. For
miscellaneous
has

products

hot-rolled

narrow

declined

ments
some

types

turers

Require¬
of

appliances

home

become

manufac¬

as

about

worried

Latest

list

as:

manufacturers

of

inventories.

some

demand

strip,

continued to contract

this

trade

such

recently.

from

items

to

join
coal-heating

involve

equipment, beverage coolers
deep-freeze units.
On

the

mobile

other

the

hand

and

auto¬

industry still clamors for

cold-rolled

sheets

in

order

maintain its high rate

to

of produc¬

tion, "The Iron Age" adds. Some
.the
present
stoppages
in
Detroit, are due to shortages of

of

nuts,

bolts,

addition

rivets

and

copper

flat-rolled

to

this

type
in

of

in

material.

arrangement is
future as every

the

distribution

of

step

the
prod¬

up

flat-rolled

ucts, the magazine states.
;. In

the midst of

that .the.

British

inquiry

during
week

the

week,

that-of
a

for

1,-

ments

-

ago.
r

Goods

moved

r.

in

well.

-

where., consumer
been high.

prices
,

,

-

has

.

on

for

the

1947; to June,

the

can

steel

be

British

steel

require¬
year June,

covers

fiscal

I

1948.

•..The 'American

Iron

and

•

Steel.

announced

on Monday of
operating rate of
s.t'eel: companies having 94% of
the steel.capacity of the industry

this

week

iwill be

the

97.0% ,of capacity

4n % lines ito. postwar

resistance

of

which

as

little changed
but remained

tons

fractionally, since most

whatsoever

Buyers were cautious about plac¬
ing orders and sellers r hesitant
quoting

even

the■>corresponding, Institute

year

seasonal... demand.

about

200,000,000

high

the'week

(Continued

(equal
established in
24, 1947)

on page

bank

holding:

tices which

preventing

are

prac¬

contrary to public

Present Law Is Entirely

Voluntary

Re¬

No

Sys¬

•

tem's

experi¬

ence

and

over

period

of

would

one

that

suggest

in

amending Section 5144 in 1933,
Congress intended to bring some;
bank
holding companies under

a

ap¬

proximately regulation and to leave others;
14
years
in even though meeting the
samedealing
with definitions, free from regulation*.
bank holding Yet that is what the law
now per¬
company
Marriner

S.

Eccles

mits

problems.
Since its in¬

upon

the law

troduction it
has been stud¬

issued.

ied and appraised
by various in¬
terested banking
groups.
With
suggested technical amendments
and

others, all of which

ceptable
and

its

to

basic

forms

the

of

none

are

Reserve

which

company
to the

panies.

of

As

a

Act of 1933, Section 5144 of the
Revised Statutes was amended by

a
a

be¬

was

do

All

so.

however,

be¬

practical matter hold¬
in

can

many

in¬

.

of these banks.

Whenever
an

the

Board

application for
the

of

receives

a

voting permit^ *
thorough examination*
holding company and its

makes

affiliates

a

to

determine what

cor¬

rections, if any, are necessary tomeet basic standards. If such cor¬
rections
are

bank

holding com¬
part of the Banking

that
such

voting permits covering only two

one

and undertook to provide effective

regulation

mandatory-

law

obtain

a
holding company owns a
controlling stock interest in 2£
member
banks, yet has obtained

it
new

the

files

of the Twelfth Federal
Reserve
District and of the great
majority
of the major bank
holding com¬
panies.

a

a

as

appear

made

a

necessary, they
condition to the grant¬

ing of the voting permit.
In one
important case, however, when
advised of the need for such cor¬

rections, the applying company
adding several new paragraphs
simply abandoned its application
applying exclusively to bank hold¬ for
a
voting permit.
It was able
ing companies (called "holding
company affiliates" in the amend¬
ment) and placing limitations and
restrictions upon the right of such
companies to vote the stock bf
member banks which

they owned.
1933, this section merely
defined the rights of stockholders
Prior to

cf

national

banks

to

vote

their

stock in such banks.

amended, and as it now
stands, this section provides that
a holding
company, before it may
vote its stock of
must

first

from

so'

Board.

member bank,
obtain a permit to do

the

The

a

Federal

Reserve

Board, in turn, is

au¬

thorized in its discretion to
grant
or

deny such

permit. As a
dition to the granting of the
mit

the

quired,

a

con¬

control

its

banks

without votr-

escape such regulation as

in
to

existing

law provided.

Clearly the law should apply to
all bank
holding companies alike..
This cannot be accomplished
by a
law which permits a
com¬

pany to elect not to subject itself
to regulation.
The law must be

mandatory to be effective.
bill

proposed

bank

provides

The

that

all

holding companies meet'ng

the

prescribed
definition
shall
register with the Board and, hav¬

ing registered, shall be automat¬
ically subject to all of the regula¬
tory provisions of the statute.

per¬

holding
on

to

ing the shares which it owns
these banks, and thus was able

holding

As

company is re¬
behalf of itself and its

11)

for

controlled banks, to agree to sub¬
mit to examinations, to establish
certain
pose

of

reserves, to agree to dis¬
all interest in securities

companies, and its officers, direc¬
tors and agents are subject to the

Present Definition of Holding
Company Inadequate
Not

only does the present law
fail
to
reach
those
companies
which elect not to apply for a vot¬
ing permit, but it also fails to
.reach

others

quacies

in

because

inade¬

of

the

definition

any

regulation those?

of

a

penalties for falsification of
"holding company affiliate." The
records as those applicable in the
.present! definition embraces only
case of national banks.
those
holding companies which,
Congress presumably felt that control member banks.
This ex¬
same

these amendments would be ade¬

quate

tOi insure

tion.

The

effective regula¬

Board's

experience in

administering
those
provisions,
however, has demonstrated clearly
the need for additional

legislation
if regulation is to be effective in
*A statement of Mr.
fore

the

Currency

Senate

Eccles be¬

Banking

Committee

on

S.

and

829,

Washington, D. C., May 26, 1947.

,

the operations of
banks without the need for
voting:
their shares iri such banks. In one
instance disclosed by the Board's^

addition, it has the support of the
Independent Bankers Association

holding

no

Undoubtedly it

companies
stances control

System and by the Associa¬
tion of Reserve
City Bankers. In

Congress. In 1933, after extensive
hearings which began in 1930,
Congress recognized the need for

in

.

ing

con¬

solely

voting permit is?

a

so,

cause

serve

problem is not

based

lieved that all would
have not done

ac¬

recommendations made
in reports
by the Federal Ad¬
visory Council of the Federal Re¬

bank

is

company

permit.

to

The

only if

holding

affect

the bill

purposes,

it

But there is

requirement

Board

would

because

the voting permit.
A hold¬
company becomes subject to

ing

,

the

temporary
domestic shortage of various steel
products,, there is little chance

supply of
adequate.
!
'1 inquiry

was

serve

significant signs of large-

no

regulate

correcting

the

Federal

its way towards

on

to

bill

reflects

areas.

roar

is

policy and interest.

This

are

tinued to

public

policy.

may

large steel companies are refusing
to make any firm commitments

1946. The

and

be the begin¬
ning of the establishment of a
proper relationship for scrap prices
•in various

829)

—

change

at

(S.

ing principles

ket. Severe tests have been placed
on
recent prices and the

moderately over that .of last year
primarily because of higher prices
than in

of this bill

mar¬

met

most goods was

purpose

the

sections of the country. The dol¬
volume
of retail
sales was

lar

The

companies so that their operations will be
in accordance with estab¬
lished
bank- $—
:

upward

on

public policy. Cites
expansion, and extension into non-banking

i

continuation

a

System

Advocates placing holding
companies under Federal

maga¬

be

another

rather

ECCLES*

Reserve control and supervision.

gross

effort is expended to

'

company

ton at Pittsburgh with
minor increases at other locations.
a

expected

trade

vacations

limited

rainy

postwar

strength i last week,
Iron Age," national metalworking weekly. Quotations on
heavy melting steel were up $2.50

holding

activities.

-■-'The'

of

demand for those .goods

strong.

The

its

ing equipment exceeds their steelmaking capacity. More and more

curtailment of activity in woolen
mill
operations again apparent.
Worsted mills, however, continued
active

from

Many automotive companies are
obtaining greater amounts of steel
ingots and having them processed
by steel companies whose finish¬

and

year,

Shoe production declined some¬
what during the week with some

above

prefabricated

new-type mate¬

rials, premium payments

com¬

Activity in wholesale trade

Other continuing controls in-

the

in¬

pares with

"

elude

figures

8,936 made in Canada. This

multi-family projects.

-

May

dicate that 281,795
passenger cars
87,198 trucks were produced
in this
country, with 13,521 and
and

now

tion,

factories

cars

due

.

rpiust be built for

S.

turned out" 56,and 16,675 trucks in the
working days of last week.
Canada's five-day production was
3,040 cars and 1,960 trucks.
'
168

renting the

or

96.651

four

was

chance at

of

and, in the like period of 1941, it
was
106,395.
'

'

of

total

as

A year ago the total was
31,895

proval must be obtained before
*

revised

a

trucks?'

reveal.

-500 for commercial and small in¬

buildings. Mr. Creedon,
according to advices to the New

and

cars

units, Ward's Automotive Reports

the

dustrial

as

includes

order,
were
also
■raised from
$400 to $1,000 for
dwellings, and from $1,000 to $2,-

"Times,"

| Demand

amounting to 77,843 units,'which'

construtcion

York

comparison

A sharp contraction occurred
in
automotive output of the United
States and Canada the
past week

of

permitted
for
new
homes, and expands the area lim¬
itation for dwellings from 1,500 to
2,000 square feet. Ceilings on re¬
pairs or alterations, classified as

job

in

weeks.

building materials. The shortage
of paper and
paper products con-;
tinued to be evident in
many sec¬
tions of the
country.

bathrooms

/"small

noticeable

a

volume

ade¬

strong for large items
stoves, refrigerators and
washing machines. There was noi
let-up in the heavy demand for

.of

number

in

less

were

was

previous

such

also

j

,

continued

per¬

are not
required, Frank R.
Creedon, Housing Expediter, an¬
nounced on May 28, according to
Associated Press Washington ad
new

•* '

'.

when stocks

ago,

houses

The

new orders

Although the dollar volume of
sales of electrical appliances con¬
tinued well above that of a
year1

Housing Controls Eased

.vices.

while

year ago,

declined by 17%.

A

construction

new

under

output. The
weekly production of lumber was
6% over that of the'corresponding

decline

the

were

production for the week with

with

for

drop

■

,,

strong and resolute America is the
"best guaranty for our safety and
'for the success of the United Na¬
tions.

mits

5,Average

holding
up
building plans. Lumber shipments
were
-approximately
4%
below

our

Beginning June 1 Federal

week

crude

of

exceeded

week

Institute.

high

coun¬

failure.

to

successive

production

In the construction field reports
indicated that local -strikes andt

"ens the United Nations, on which
"rest our hopes for lasting
peace,|
!A weak and irresolute America

.is

third

*

trend

risks but also weak-

grave

the

leum

are

our

the

1.5%;

rose

according to the American Petro¬

no

we

Industry — For the first
time since it began late in March
the scrap market showed

claims

000,000
barrels
daily.
daily output was at a new record
of 5,024,850 barrels, an increase o'f
16,800 over the previous weekj

adoption of

universal training because
convinced that weakness

unem¬

to.

Oil

security for this country- or
any country unless war is abol¬
ished through the establishment
of the reign of law among nations.'
We recommend the

.

initial

-For

real

!

•

:

Steel

fractionally
those of the previous week,1
dropped

the, nation's

to

is

for

'*

narrow.

10r"r'r"

under

peace.

^Everything points inescapably

May

■

while

In preparing this report we have
attempted to evaluate all factors
of importance to our security and
of

ended

week

total continued claims

'

"the maintenance

the

S.

Chairman Eccles urges
passage of bill to place further curbs and
restrictions on bank
holding companies on ground present regula¬
tions are inadequate to
keep operations of these corporations in
line with established
banking principles and

However, notwithstanding this condition, total employ¬
generally unchanged with" no significant increase in unem¬

was

MARRINER

Chairman, Board of Governors, Federal Reserve

work-weeks.

would

be responsible for reasonably ap¬
plying in all procedures and pro'grams of universal,training.
In

By

industrial" production for

forces

armed

Holding

Companies Needed

for

wholesome,
environment
The experi-

made
ard

Full Control of Bank

.

en¬

/provide
a*

religious

training
a

by

convinced that it is

are

tirely

enunciated

<

3

cludes from

companies which operate in all
spects

as

re¬

bank holding companies;

but which control

ber banks, even

only non-memL

though,

a$

quently the case, the latter
insured banks.

There

are

is fre¬

jnclude^
a

num¬

ber of companies in this

category

which operate

banking*

numerous

(Continued

on

page 4)

4

governmentally sponsored

As We See It

We
(Continued from first page)
if

the

not

too

active

dislike,

many countries.
the mess now up

of

We are

for total conver¬
factory, each

blueprints
sion

quickly and surely extricate —assuming that their authors
ourselves.
The fact is un¬ do not forget their objective
pleasant, but must not for and fall into the easy habit
of supposing that the impor¬
that reason be ignored.
tant thing is to control every¬
We must, therefore, see to
and everyone.
Such
it that we are as strong as we thing
economic strength as we have
may be—and the most discon¬
at
opening of the conflict
certing aspect of the whole
situation is the
in

so

real

apparent lack

must be directed toward vic¬

tory. That, all concede.
many quarters of any
But what of making certain
understanding of the

problem of becoming and re¬
maining as strong as possible.
We hear a good deal of uni¬
versal military training, al¬
though perhaps not as much
as was
formerly the case. One
of the encouraging develop¬

that

economic

our

strength

on

such

after
there
When

can
war

can

make

fateful day? That,

a

all,

we

basic. Failure
easily be fatal.
is on it may be too
is

late to build up an economy

ments of recent months is the

depleted by

years

fact that the truth that uni¬

after false

gods.

versal

of following
Yet where
today do we find this aspect
of the matter getting the at¬
tention it obviously deserves?
Or, if it is getting attention,

military training is not
cure-all, that indeed it could
be more of a handicap than
an aid in
keeping us ready for
any
emergency,
is seeping where is the leader who is not
through the minds of a good afflicted with the foolish no¬
many who preached the uni¬ tion that the way to strength¬
versal military training idea en the economy is to set the
day in and day out. This is politicians or the day dream¬
encouraging despite the fact ers to work tinkering with it?
that many of our leaders in All the quack notions are like¬
places of influence are still ly to be defended on the
ground that they strengthen
"harping on my daughter."
the economy and thus make
Other current discussions of
us
strong to defend ourselves
this vital phase of our public
against our enemies.
policy usually have to do with
such matters as maintaining
The
simple truth of the
"standby" facilities, technical matter is that the most im¬
research in armaments, and portant and the most effective
other related subjects. These action possible for the pur¬
are
all important aspects of poses here in question is to
the subject.
It would indeed begin forthwith (1) to get our
be foolish to neglect the appli¬ fiscal situation in order, and
cation of science to the devel¬ (2) simultaneously to abolish
opment of weapons, or to fail the New Deal and all its
to develop new techniques, works.
The two things go
and in general to keep abreast hand in hand, and without
in all strictly
military mat¬ them there is no way in which
ters.
All this goes without we can can be even half sure
that the economy of this coun¬
saying.
try will move forward sound¬
How to Be Strong
ly, wisely and effectively dur¬
But there are even more ing the
years
immediately
Granted the adoption
fundamental matters which ahead.
are
being almost wholly neg¬ of such policies and our fu¬
lected.
Let no one say that ture is as nearly assured as
a

the next world

war

will be

a

"push-button affair" ending
in a day.
The next struggle
will again be a battle of the
production lines.
Assuming
that we keep at least equal to
potential enemies in technical
matters of making war, we
shall win

or

depending,

lose the next

war

it depended this
last time, upon the degree in
which we can outproduce the
enemy. The economic strength
of

the

as

nation

is

the

funda¬

mental
any

military, strength of
modern nation. The fun

damental truth of this propo¬
sition is so obvious that it can




offices having

Stop U. S.

substantial amounts

of deposits.

Another and more

Currency Hoarding
The

26

them to the Bank of Canada.
move

said

was

to

effort to prevent

be

part

The

of

Associated

rency,

from Ottawa
time

Press

stated.

Finance

an

hoarding of pri¬

vately obtained United States

cur¬

advices

At the

United

Canadian

Minister

mate

States

travel

available

funds

residents

for

legiti¬
Residents

purposes.

continue to obtain

may

funds

holding

company

as

any

"which owns or controls,
directly or indirectly, either a ma¬
jority of the shares of capital
company

stock of

member bank

a

than 50 per centum of

or

more

the number

of shares voted for the election of

election.

preceding

necessary

and

permits from the for¬
eign
exchange
control' board
through the banks, the announce¬

The

.

.

."

definition is to reach those

this
com¬

panies which control the manage¬
ment and policies of banks, and
with this basic

premise the Board
agreement. However,
it has long been recognized by
Congress and by the courts that
is in entire

effective

control of

company

one

provision that for vio¬
of its agree¬

or

ment with the Board,

the holding
company's voting permit may be
revoked.
In' that event, certain
penalties affecting the banks in
the

holding

system may

company

be applied.

These
when

underlying

purpose

and its controlled banks, and

the further

directors of any one bank at the

same

Douglas
Abbott announced that no change
was being made
in the policy of
making "any reasonable amount"
of

lation of the statute

on

issued orders requiring
Canadians possessing more
than
$10 in United States funds to sell
May

pany

bank

Government

Canadian

important de¬

be

necessary to disclose fully the re¬
lations between" the holding com¬

fect is in that portion of the pres¬
definition
which defines a

ent

shall

"as

examinations

such

particularly

provisions,

considered

in

the

is

not

light of
voluntary aspects of the exist¬
ing law, fall far short of providing
effective regulation.
In the first
place, the Board's right to exam¬
ine a holding company and its
the

controlled

banks

coupled

with the specific power to require
corrections. Furthermore, the pen¬

alties for violations of the statute

by another does not depend upon or of a holding company's agree¬
the ownership or control of a ma¬ ment with the Board are directed
jority of the voting shares.
Con¬ primarily at the banks in the hold¬
ment stated.
trol can be, and often is, exer¬ ing company group and not at the
Under previous regulations, put
cised through the ownership of a holding company itself.
into effect last September for a
much smaller proportion of the
The existing law contains no
trial, Canadians were permitted
total shares outstanding.
Some¬ declaration of Congressional pol¬
to retain up to
$100 in United
times it is maintained without the icy upon matters which vitally af¬
States currency and to use it for
fect the entire problem. The Board
ownership of any shares.
travel purposes without the ne¬
Similarly, the number of shares feels that bank holding company
cessity
of
obtaining
a
permit. owned or
controlled, as compared legislation should include as many
the

From

Associated

quote:
Whqn

Press

we

with the number of shares voted
for the election of

the

regulations

were

adopted, the statement contin¬
ued, it was "not contemplated
they would result in any sub¬

directors at the

preceding election is an unsatis¬
factory basis for determining
whether a holding company rela¬

tionship exists. Such a restricted
test puts it within the power of
private the holding
company to establish

stantial accumulation of United
States

in

currency

hands."

In

however,

practice,

absence

of

control

when, in
fact, it is at the same time exercis¬
ing most effective control.
The
spent in Canada by American case in which regulation is most
tourists were being held by in¬
necessary is usually the case in
dividuals rather than being sold which the
attempt is made to take
to their banks in Canada.
advantage of the existing defini¬
Some
residents
had
"taken tion to
escape regulation.
advantage" of the regulations
The definition of a bank hold¬
to
acquire
and
use
United
ing company in S. 829 conforms
States currency for unauthor¬
more nearly to the practical reali¬
ized purposes.
ties
of
intercorporate relation¬
"The purposes of the changes
ships.
It is derived in large part
an

it had been found that "consid¬

sums"

erable

now

the

made is to make

United

by

of

States

that

sure

earned

currency

Canada through the tourist
thus

is

and

re¬

available to;

meet the needs of the Canadian

economy," the statement added.
said

Abbott

Mr.

would

be

provided

Canadians

that

holding

time

enable

to

United

States cash in amounts exceed¬

ing $10 to comply with the new
regulation by selling surplus
amounts
After

to

a

in

Canada.

intital

period,"

bank

"short

a

customs

officials

would

structed to enforce the
mit

regulations

in¬

be

new per¬

strictly

and

definition

of

company
adopted
when it enacted the

by

from

the

a

holding

Congress

Public Utility

Holding Company Act of 1935. The
first part of the definition extends
automatic coverage to all compa¬
nies which own 15% or more of
the

voting shares of two or more
However, eveh though a

but

less

more

than 15%

than a majority

of such

shares, if it can demonstrate that
it does not exercise a controlling
influence over the management
and

policies of its banks, it would

not be
der

subjected to regulation un¬
The second part of

the Act.

Congres¬

purpose
as
possible, and
that, where the exercise of admin¬

istrative discretion must of

neces¬

sity be called into play, the legis¬
lative

standards

such

of

S. 829

for

the

discretion

clearly stated.

exercise

should

be

The provisions of

designed to give effect
principles.

are

to these

Nonbanking Activities of Bank
Holding Companies
One

of the most salutary re¬
quirements of S. 829 is that con¬

tained in Section 5, which would
require that the activities of bank

holding
companies
be
limited
solely to the business of banking
or
of managing and controlling
subsidiary banks. To that end a
holding company would be re¬
quired within

stated period

a

divest itself of any

securities
cept those in companies which
incidental

and

necessary

banking operations,

to
ex¬
are

to

its

which are
eligible for investment by national
or

banks.
The reasons

banks.

company may own

of

sional

money

traffic is turned into official
serves

specific declarations

underlying this

re¬

quirement are simple.
Accepted
rules of law confine the business
of banks to

banking and prohibit
engaging in extraneous
businesses such as
owning and
operating industrial and manufac¬
turing concerns.
It is axiomatic
them from

that

the

lender

and

borrower

or

the Board potential borrower should not be
prosecutions would be
insti¬ to declare a company to be a bank dominated or controlled by the
tuted in cases of unlawful ac¬
holding company even though it same management. In one excep¬
circumstances otherwise per¬
cumulation
or
export of the owns less than 15%, or possibly tional situation, however, the cor¬
mit.
The situation is as sim¬
United States funds.
porate device has been used to
none, of the shares of two or more
ple as this. Yet the fact ap¬
one
management
banks, provided the Board finds, gather under
after hearing, that the company many different and varied enter¬
pears to have occurred to very
Against Permanent RFC
prises wholly i unrelated to the
does in fact control such banks.
few, if any, in public life.
The House Banking Committee,
The
Board believes
that this conduct of a banking business.
which is making a study of Fed¬
When a bank holding company
Let us not forget that we
definition is practical and just. All
eral credit and financing opera¬
has expanded its operations into
won this last war in our fac¬
tions, was told b.y John D. Good- companies owning the specified other and unrelated
fields, it tends
tories.
Those factories, or the lo e, Chairman of the Reconstruc¬ number of shares are affected
more
and more to take on, the
alike. Each has a ready procedure
know-how which enabled us tion Finance. Corporation, on May
characteristics of the type pf in¬
at hand for escaping regulation by
stitution to which the Investment
to build new factories effec¬ 26, that he did not think that the
RFC ought to be made "perma¬ demonstrating that it does not con¬
Act of 1940 was ad¬
tively and quickly, and the nent," Associated Press Washing¬ trol the management and policies CompanyYet such a
dressed.
company, if
of two or more banks. In the clear
organizing techniques were all ton advices stated. The Commit¬
it holds a voting permit
cases
frojpThe
(such, for example, as in¬
products of many, many years tee is to decide what to do about surance companies which own Board, is exempted from the pro¬
the future of the RFC, as, unless
visions of the Investment Com¬
of
industrial
development
bank shares purely for investment
Congress
acts,
the
government
under a system which was
purposes) absence of control may pany Act. It is necessary, in keep¬
lending

and is the very negation of the
New Deal philosophy.
It is
all too easy

for us to take for
scarcely be doubted for
granted the productive abil¬
moment.
ity of our economy. There is
:
Yet ignorance as to how absolutely no reason why it
economic strength can be de
should not continue to be pro¬
yeloped and, maintained is all ductive and to grow constant¬
butffhcredible. We hear con- ly more productive — but it
^isthnfl^httout "master plans" will not do so, indeed cannot
for
converting
the
entire do so, if it is shackled with
economy to war in a day—of restrictions,
unwise
taxes,

-

(Continued from page 3)

Canada to

to

will be all that

it

Companies Needed

to

way

is clear.

so

each

with

to our tool and each man in the
ears, and it would be difficult proper place. Such plans, too,
to say precisely how we can are necessary and important

in

cally strong—and the
do

Full Control of Bank Holding

economi¬

remain

must

un¬

2

and all the rest.

ions

Thursday, June 5, 1947

& FINANCIAL CHRONICLE

THE COMMERCIAL

(3332);

business
testified

agency

June

that

will

30.

there

go

Mr.

has

out

of

Goodloe
been

a

great deal of discussion in Con¬
gress and outside as to whether
the RFC will or should be "liqui¬
dated." He went on to say accord¬
ing to the Associated Press:

"My
to

be

own

the

definition permits

be

easily

hardship.

demonstrated

without ing with sound banking principles,
that such a company should be'Re¬
the

In the close cases,

wuold be upon
to show that it is
not in fact exerting the kind of
influences upon banks which re¬
quire that it be subjected to regu¬

burden

the

of

proof

company

so

as

to

become

holding company

either*

or an

ia

bank

investment

company.
It should not be per¬
mitted to remain a hybrid beyond
a

lation.

period reasonably necessary for
adjust its affairs.

it to

feeling is that it ought

continued beyond June 30,

quired by law to adjust its'affairs

Regulatory Aspects

Section 5 would makedt unlaw¬

and that Congress

ful

it

the

should look at
Turning now to the' regulatory
periodically and^decide. Maybe aspects of the problem, under the
the time will comet Swhen it should present law the
only provision
not
be
continued.
But I don't which implies a degree of admin¬
think that time is now."
istrative
supervision relates to

aftep twa'years,.
Bo&ra

deemed

avoid ;niidub

holding
curities,

longer., if

h£rd&hip£for

company

of

or

necessary * to

any

to

own

a bank
the se¬

company

other

Volume
than

165

Number

THE COMMERCIAL & FINANCIAL CHRONICLE

4600

bank" or to engage in
any
business other than that of bank¬

ing

a

dicates that there are 41 batiks in

Transamerica

the

operat¬

group,

or

managing and controlling ing a total of 619 banking offices
Exceptions are made in having aggregate deposit^in ex¬
favor of those companies Which
cess of $6V2 billion.
This repre¬
are
reasonably incidental to the sents more than 40% of all the
business of banking, such as
safety banking offices and 38% of all of
deposit companies and the like, the commercial deposits in the
and a bank
Since 1934 the
holding company may five-State area.
lawfully acquire securities from Transamerica group has acquired
its banks when
requested to do so a total of 126 banks, which have
by any Federal or State examin-/ been operated. either as
sJP^r^;e
ing authorities. In addition, under units or have been absorbed by
an
amendment which has been the banks in the group.
In addi¬
suggested to and approved by the
tion, 74 new branches have been
Board, the holding company would established over this period.
Un
also be permitted to
acquire such Dec. 31, 1933, this group served
securities as are eligible for in¬ 242
towns; as of Dec. 31, 1946, this
banks.

vestment

by member banks.

number had been increased to 379.

and made a part of the pro¬
posed new law.
Upstream loans
between a bank, and its holding

(3033)

over

company would be regulated, as
well as loans involving the securi¬

ties

of the holding company and
its other subsidiaries.
The Board

would be authorized to scrutinize
the terms of any management or
service contracts between a hold¬

ing
company
and
its
banks.
Finally, the Board would be au¬
thorized to make such rules, regu¬
lations, and orders as might be
necessary to enable it to adminis¬
ter and carry out the purposes of
the Act.
The proposed legislation for the
first time to my knowledge in
any

President Asks War Powers Extension
In

a

message to

extension for
domestic

a

year

Congress

on May 23 President Truman
sought
beyond June 30 of his authority to control the

and

use

export of a few materials "to prevent harm to our
own economy and
give concrete support to our foreign policy." The
President declared that is still essential
to maintain certain limited
materials control," and in

part, stated:

"Specifically it is

tc^

necessary

continue the power to allocate the

am

following imported materials: tin

ited

and

Secretary of State to be of high
public importance and essential to

tin

products,

fibers

agave

and

manila

and

cordage,

anti¬

nate

major portions of the bank¬

ing facilities of particular sections,
is

which

one

of

approval of some agency of the
Federal Government.
Under Jhis
section any direct purchase of the
stock or assets of banks by a bank

holding

wished to acquire the as¬
a bank, the acquiring bank,

group

strikes at the heart

sets of

traditional system of com¬
petitive banking.
our

Under existing law

bank- may

national bank, would have to
secure the approval of the Comp¬
if

chartered

a

taking

of

branches

new

member

State

a

bank

it would have to obtain approval

approval of the FDIC.

by

The proposed

ates

In order to

the

bill als<3

standards

enumer¬

which

would

guide the banking agencies in de¬
ciding whether to approve such
acquisitions.
First, they would

branches, national banks

must first obtain

if

by the Board; if a non-member
bank, it would have to obtain the

and operating the of¬

over

fices of other banks.

establish

or

a

troller;

be

prevented by the
regulatory agency to which it is
subject from expanding its bank¬
ing offices either by the estab¬
lishment

have to

would

company

be approved by the Board.
If one
of the banks in a holding company

permission from

the Comptroller of the
Currency,
State
member
banks
from
the

have to consider the financial his¬

tory and condition of the applicant
and
the banks concerned; their
banks from the FDIC.
But the
prospects; character of manage¬
bank holding company is not sub¬
ment, and the needs of the com¬
ject to any such requirements. If
munities involved.
-These are the
a bank in its
group is denied the considerations
which
are
today
right to establish an additional
the legislative guide for admin¬
office, there is nothing to prevent istrative
action in such matters as
it from
acquiring the stock of an the admission of State banks to
existing bank and simply adding
membership in the Federal Re¬
the institution to its list of con¬
serve System and the granting of
trolled banks, operating it, for all
deposit insurance coverage. Next;
practical purposes, as a branch of
they would take into consideration
the entire system.
national policy against restraints
This loophole, enabling a bank of trade and commerce and the
holding company to expand at its undue concentration of economic
pleasure, lends^-itself readily .to power..
This .would

Board,

and

non-member

insured

istrative discretion.

solution

the great

of

world

food

problems,

and

immediate

self-interest.

"Allocation and priority powers

Herbert

a
private session of a House
Appropriations subcommittee in

steps
that
of

must

do not

we

other

able

to

to

take

the

certain

make

add to the hunger

peoples

than

more

support of the administration's

be

necessary

by importing
agreed share of

our

re¬

the

amassing of vast resources ob¬
largely from the-".'public,
Which can be controlled and-used
by the relatively few who com¬
prise the management of the hold¬
ing company, giving them an un¬
fair and overwhelming
in acquiring additional

anti-monopoly

objectives

stated In the Sherman and. Clay¬
ton Acts. Finally, under an amend¬
ment

suggested

the

by

advantage

whether

properties

of

an

acquisition, regardless

its

competitive effect, would
carrying out an unlimited extend the operations of a holding
expansion. Such power company beyond limits consistent
be used to acquire indepen¬ with
adequate and sound banking.

and in

program of
can

dent

banks

leave

the

minority
which

to

cept their

by

measures

which

local

management and
stockholders little with
defend themselves ex¬
own

The

Board

standards
auate

believes

would

that

furnish

an

these

ade-

guide for administrative

tion.

Much

consideration

strenuous protests.

ac¬
was

given to various proposals on the
of the
subject, including the fixing ol
important rigid, even
mathematical, formulas
bank holding
company
systems
governing
expansion,
but the
have sought the Board's
views, if Board concluded that such defini¬
not its approval, on proposed bank
tions would make the section dif¬
acquisitions, there is one case ficult
While

great

the managements

majority

where1

of

the

to enforce from

holding company man¬
agement has openly defied ,the
'Board in its attempt to halt an una

'

bridled

bgnk expansion program.
'I refer to'Transamerica
Corporation, 'with its vast group of con-

•

an

adminis¬

'

;

to curb

sucih expansion, has thereby indi¬
cated its approval of

Transamerica

cupied

for the

oc¬

according to Associ¬
Washington advices.

areas,

ated Press

Later

Mr.

Hoover

said

was

to

tions in many other countries
critical that

so

continue

the

it

is

issue

to

power

are

to

necessary

port priorities in special

ex¬

cases

for

It

may

members

be
of

interesting
the

to

the

Committee

to

"independently checked" all War

key industrial items that are vi¬
tally required for reconstruction

Department estimates for the

and rehabilitation.

have

told

that

newsmen

he

had

re¬

Board's

pro¬

•

The

remaining regulatory

pro¬

visions of S. 829 require little dis¬
cussion.
The bank holding com¬

be required to regis¬

lief

work, and was "entirely in
support of them." The Associated
Press reports him as having made
the

financial assistance.

following additional points:
(1)

farm
the
to

With

short

Europe

of

machinery and fertilizer,
Fall harvest is not likely

be better

than

75

80%

or

of

It would be sub¬
ject to examination as are each of

have the latest figures on the size

its

of the Transamerica

sions of law respecting the main¬

pire.

em¬

subsidiaries.

As, of Pec./^, 194^ infor¬ tenance

mation available! to the>Board in-

Financial

the ' prewar*

but

average;

that

as¬

sistance alone,

without occasional
priority backing, may be useless
in instances where speedy aid in
concrete

form

essential.

is

'

Existing provi¬

ing

of reserves by bank

companies would

be

hold¬

carried

;;o

ot

£<"•.£» [WiO'i

pLT.

V*




Ex¬

this bill.

on

At

the

beginning of his
the President said:

mes¬

"Since V-J Day, American in¬
dustry, agriculture and labor have
established
notable
production
records. If production abroad had
reached similar heights no mate¬

of

,use

controls

needed

thqipriority

powers

would

be

of world

re¬

all

at

today.

"But

the progress

construction has
difficult

been

slow.

and

necessarily

In

a

few

re¬

spects the United States has been
in

therefore

and

controls

by

any
are

us

delay,

instances

few

still

are

"However,
suffered

by this

a

certain

over

commodities

imported

needed.

adverse effects
slignt in com¬

of life faced by

most countries of
It is primarily
because of these conditions, with
their
enormously important po¬

the

world

today.

social

and

litical

limited

the

of

retain

of

portion

<our

a

very

wartime

materials."

powers over

President

The

repercussions,

still

must

we

requested

powers

f

,

now

possesses

by

virtue
small

90-day extension of a

a

portion of the Second War Pow¬

ers Act, which otherwise expired
The
-.y,; \v, :?
y,
that I; March 31.

-''over-the

4.

situation

a

year

ago

"Marketing in Action" Conference June II

because there is "better organ¬

v

ization."

in Action," the American Mar¬

Under the theme of "Marketing

(2)

.

Governments

abroad

are

having difficulty in preventing
farmers from selling their
prod-;
uce

on

the

markets.

black

He

said this called for "more rigor¬
ous action"
by governments in
those

which

countries

are

un¬

der-producing.
(3) "Practically every coun¬
try
(in Europe) has gone over
to

He

said

covery

for

of

form

some

this

collectivism."

has

hampered re¬
shorter hours

through

workers

tive by the

and

loss

of

initia¬

"managerial class."

(4) The Western Hemisphere,
Australia

South

and

Africa

Association's

keting

their
ern

its

are
"carrying on
the whole of west¬

backs

Europe," furnishing 90% of
relief.

enterprise
ductivity."

He

as

described

this

as

agent of pro¬

an

(5) The former enemy coun¬
tries "are nqt going to be self
supporting until their industries
are

restored."

(6)
But
he
expressed
the
opinion that Recovery can come
in "two or three years" if Rus¬
.

sia

and

(7)

France

"There is

will
no

cooperate.

need to put

industry in chains" in disarm¬

ing the former enemy countries.
He
of

said

that

this

country's job

providing relief will only be

prolonged>,by that action.

*

,

Conference

Anniversary

10th

.

in

York

New

(Hotel Commodore—June 11th—13th) is expected to attract a record
assemblage of the nation's top marketing administrators, specialists
and teachers.

•

"

"

;

.

timely, practical sessions devoted to such diverse but

Fourteen

important marketing problems as^
pricing, the return to real selling, der chains, Red Motley of Parade
the immediate as well as the long and Raymond Rubicam of C. E..D.
At

pull outlook for business, produc¬
tion

and

and consumer credit
the
more
pertinent

tional trade,
well

as

phases
will

be

the
as

as

of distribution
research,
discussed by leaders in

of

each

interna¬

employment,

these

practical

as

with

Opening

Mutual

leadership

the

awards luncheon of the New York

Chapter, the Convention will ac¬
celerate quickly with an address
by Ernest Breech, of Ford, on the
current acute problem of "Pric¬

Immediately following, in
the afternoon session, Earl Bunt¬
ing, President, National Associa+
tion of Manufacturers, will discuss
ing."

"Marketing in Today's Economy,"
while Don Mitchell, President of

Sylvania

Products,

Electric

will

Ahead," and
Harold W. Brightman, President
of Lit Brothers, has as his subject
talk

the

tail

on

"The

and

son

well

the broad fundamental knowl¬

Job

session

luncheon

Edwin

will

give a most im¬
portant talk on the future outlook
of
business.
In
the
afternoon,
Howard Chase of General Foods,
Don Francisco of J. Walter Thomp¬

with

fields—men

experience

the

Nourse

G.

will

Edgar Kobak, President,
Broadcasting
Company

speak

timely subjects in

on

special interest fields.
At the 10th Anniversary dinner

their

own

address en

the. featured

interna¬
Will-

tional trade will be given by
ard

Thorp;

The Friday

morning specialized

sessions will be devoted to down-

to-earth discussions of Copy Test¬

Management of Field Inter¬
Specialized
Markets,
Merchandising
Marketing
Re¬
ing,

viewers,

Retailer, Sampling,
Television, the Theory
Marketing
(for teachers of
marketing), Consumer Credit—Its
Use
and
Control
as
a
Selling
search

the

to

Radio and

of

Force.

particular time¬

Because of the

problem of pricing at the re¬

liness of these sessions the Amer¬

level.

ican

The

Thursday

morning

meet¬

ings will be highlighted by talks
by Victor Lebow, authority on
distribution

methods

of

mail

or-

Association ex¬
tends
to
representatives^pf vail
business an invitatiftifc'tQ- tshareun
the

Marketing

privilege

of

'

.

«

t

"'0

.

V
,

attending .this
~

Convention.
,

*1

the

'distribution1; should "'improve

'

banking

"The

Congress * has
already
recognized the importance of sup¬
porting our foreign policy with

ter with the Board and to file
pe¬

riodic reports.

in

policy.

that

"testimony to the value of free

the

of

It, too, is essen¬
implementing our foreign
I also urge prompt ac¬

parison with the tragic conditions

utes.

pany would

policies*. '

tial

economy.

Under

extension

an

port Control Act.

civilian relief program

population,

4

power

eration

adversely affected

must

produtcion.

edge of marketing in the national

trolle$; bahks in Arizona, Cali- posals, each case would stand on
fornia; Nevada, Oregon and Wash- its own
merits, considered in the
'ingtbn.
^he Transamerica man¬
light of standards which are. deep¬
agement £has publicly sought to
ly rooted in American traditions.
justify itself on the ground that
Cpngre'ss,' by withholding from the
Remaining Provisions

;Boapi tfyq direct

bills, H. R. 3152 and S.1297,
pending before the Congress.
Prompt action on these bills is
urgently needed.
Similarly, the
Congress now has under consid¬

It is therefore
essential
be again put in trates.
Declaring that Eur¬ that there be continued authority
to restrict imports and to issue
ope's swing toward "collectivism"
and
"proposed Utopias" has re¬ priorities for export of nitrogen¬
tarded world recovery the former ous fertilizer materials.
President urged adoption of the
"Economic and political condi¬
countries

scarce

representing 6% of the world's

f

1

"This matter is covered by sep¬
arate
now

of occupation

zones

standpoint, and, as indi¬
cated by representatives of the
Justice Department, might confbct
with existing governmental pol¬
icy respecting the anti-trust, stat¬

trative

to

rials

the American

Federal

Advisory Council and the Reserve
City Bankers,-they would consider

United

reference

foods. I recommend, there¬
fore, continued authority to main¬
tain import controls on fats and
in Germany, Austria, Korea and
Japan on May 27, was reported to oils, and rice and rice products.
~r"
"The lack of fertilizer is par¬
have
emphasized his contention
that industry in the former Axis ticularly acute in the case of ni¬

quest for $725,000,000 for relief in

give^jeffecti

to.» the

the

of

omitted

importance of continued
authority to allocate the use of
transportation equipment and fa¬
cilities by rail carriers.

sage

"We

fore

have

tion

_

tained

"I

construction.

Hoover, appearing be¬

policy

States.

to carry out our foreign
policy and to assist in world re¬

needed

Hoover Urges Relief
In Occupied Areas

the

foreign

rect

,

by

the successful carrying out of the

america's

tential evils of bank holding com¬
pany operations exists.
That evil,
which permits a
holding company
without legal hindrance to domi¬

certified

cases

cinchona bark, quinine and
Except in the case of
tin products, where the allocation
of tin plate is also essential to the

Expansion

company problem.
It is in this
area that one of the
greatest po¬

to

quinidine.

relate only to Trans- Federal banking statute contains the continuation of these controls
banking operations, in a provision granting a statutory is solely for the purpose of assist¬
addition, it owns and operates right of judicial review to any one ing our own industry and agri¬
The problem of how far bank
many other „types of business with aggrieved
by any action of the culture.
holding company systems should aggregate resources of more tnan Board taken under
"As a corollary to the above, it
any
of the
be permitted to expand has
long $275,000,000.
various regulatory provisions of is also
necessary to continue the
been of serious concern.
There
the bill.
This provision should power to issue
Section 6 of S. 829 would make
export priorities
is. perhaps a greater need for a
it impossible for this or any other help to crystallize at an early date for materials needed to increase
positive declaration of Congres¬
the precise boundaries of Board the
holding company system; to reach
production abroad of products
sional policy on this question than
out and absorb more and more authority under those sections in¬ that
we
urgently need in this
on
any other phase of the holding
banks without first obtaining the volving the application of admin¬ country.
This is a matter of di¬

Company

recommending would be lim¬

mony,

These figures

Bank Holding

5

'

.

U'X
' V

Thursday, June 5, 19455

Steel Operations

Equal Postwar Peak—Scrap
Market Stronger Despite Restricted Buying

'

supply to many manufacturers
goods is insufficient to support the high operat¬
ing rate at those plants, it can be expected that gray market steel
will be purchased to meet current production schedules," according
to "The Iron Age," national metalworking weekly, which, in its issue
©f today (June 5) further states that "this process has been going on
"As long as the normal source of

©f finished

for

consumer

time

some

current hear-

and

Washington
are
only
bringing to light what has been
Common knowledge in the trade
Jor more than a year."
The same
publication further adds:
in

ings

"At

time

no

total ton-

has the

riage of steel in the previous black
current

©r

tuted

a

market

gray

consti¬

substantial proportion of

total steel shipments.

Practically

<en

each

transaction.

flat-rolled

material

Prices

have

on

ranged

this market

is

curtail

to

forced

will

blast

be

furnace

operations because of the short
supply of high-grade metallurgi¬
Shut-downs in the in¬

cal coke.

would

however,

dustry,

not

be

uniform if the mines are closed—

companies
have
several
supply of coal and coke on
the ground."
some

weeks'

Iron

American

The

Steel

and

Institute this week announced that

telegraphic reports which it had
received indicated that the

pacity for the week beginning June
2, compared with 95.4% one week
ago, 90.6%
one month ago and

extreme

where
©

a

cases

manufacturer needs only
of steel to com¬

a

small

plete

emergency

amount

production

schedule

and

maintain his

working force he will
high as $250 a
ton for cold-rolled sheets or strip.
In another instance, 'distress' gray
market steel may be sold in the
same week at almost $100 a ton
less.
There is no regular pattern
to the prices involved in present
transactions—they depend on the

today

<even

pay as

individual

circumstances

the

of

customer

seeking the steel.
"As the over-all supply of steel
arid

increases

offers

the

as

number

gray market steel ex¬
premium prices will drop
towards the regular normal mill
quotations. This trend is already
in motion.
Overpriced steel mar¬
kets are supported entirely by de¬

pand,

from

manufacturers

who

-will pay almost any price to main¬
tain their working force in order

to turn unfilled orders into actual
^deliveries

rapidly as possible.
IMany manufacturers are afraid
that if they do not complete, and
ship their backlogs at an early
as

,

date

their

competitors

cancellations

will

will

become

and

of

market steel
©re:. Redirected export tonnage;
steel sold by consumers whose
quotas with the mills have given
them
more
material than they
gray

actually

needed; and, finally, a
concerted drive by some steel con¬
sumers to get rid of their unbal¬
anced

obsolete

or

inventories at

prices higher than mill quotations.
It is a physical impossibility, for
steel mills to police the final dis¬
position - of steel going to their
Tegular customers.
The so-called
quota system is one of the fairest
ways .of,

distributing the current
large steel production.
"In

special survey and inves¬
tigation 'The Iron Age' has. been
a

able to find

companies

no

evidence that steel

were

involved in gray

market transactions.
lias

to

come

their

bona fide orders

Wherever it

attention

that

being

were

re¬

directed to persons other than the

regular customer,
tion has

immediate

been taken.

ac¬

In

practi¬
cally all gray market transactions,
however, it is the persons second,
third
the

and

fourth

removed

from

steel

companies who peddle
the
material
at
the
premium
prices.
Stories involving 'great'
tonnages have been found to be
aiothing but rumors or a geomet¬
rical
expansion of one or two
small sales.
:

"The scrap market was stronger

this week at most major consum¬

ing

areas.

and

Rises at Philadelphia

Chicago

Age' steel

caused

scrap

'The

Iron

composite

to advance to $31.17 per

price
gross ton,

up 75c a ton from last week.

"In

some

circles

week.

The

operating rate for the week
beginning June 2 is equivalent to
1,697,400 tons of steel ingots and
castings, compared to 1,669,400 tons
one

week ago,

month

1,585,400 tons

one

and 972,800 tons one

ago

The current figure
equals the peak postwar rate es¬
tablished
during the
week of
March 24,1947, and marks the 22d
successive week that operations
ago.

year

above 90%.

were

"Steel"

of
Cleveland, in its
of latest news develop¬
ments in the metalworking indus¬
try, on June 2 stated in part as
summary

follows:

"Renewed

ing

the indefinite

strength is develop¬

the iron and steel scrap
market reflecting completion of
many high-priced tonnage ship¬
ments and trade expectations of a
strong revival in demand with
steelmaking operations holding at
near-capacity. At Pittsburgh and
in the East prices show definite
signs of turning higher.
in

"The stronger tone is in the face
of

"Sources

preceding

the

from

1.7%

more

prevalent.
.

year ago. This repre¬
increase of 1.6 points or

one
an

of

of

mand

55.2%
sents

continued

slow

buying

with

most mills out of the market and

exercising greater selectivity in
accepting tonnage. Supplies are
reported improving with the mills
taking in considerable tonnage

renewal of

a

consumer

buy¬

ing cannot long be deferred.
"Demand

for

finished

steel

products continues, strong despite
sustained production and signs of
increasing caution in ordering.
Requirements for sheets, strip,
pipe, plates and carbon bars con¬
tinue, well in excess of supply.
While there may be some easing
before summer ends, indications
are

demand will still

top supply

in products now on the scarce list.
Even structural shapes are expect¬

to continue tight despite the
lag in building. In the light, flated

rolled

carbon

light gage
servers

items, including
plates, some trade ob¬

look for

no

material

'daisy

chain'

same

variety

"Consumers

ordering more
including sheets,
but nevertheless they still want
more tonnage than they can get.
are

conservatively,

Some of this conservatism is due
to

unbalance

in

product inven¬
tories which is hampering some
manufacturing operations. In sheets
buyers appear less Jrantic for ton¬
nage,

try mdy escape a mine tie-up this
'If1 a strike should occur

"'Gray' market operations in
steel products appear tapering off.




changing

tonnages

several times.

with

(Continued from first page)
tories of most of the money, and
have the power to increase or

hands

Little evidence of

reflecting

some

modifica¬

tion of manufacturing programs.

1933,

ing

uncov¬

supply

by

extend¬
are

heart of the economic body.

Should the heart deny its favor to

"In

the

regular steel market
prices continue firm, talk, of pos¬
sible reduction having faded to, a

fall

whisper.

the

Last' week

shrivel and die.

of

discounts,
incorporating
increases
and
decreases.
producers are understood
refiguring lists.
Important. ad¬

that

effected last week

and

copper-base

perish.
strange, indeed,

seem

nation which is

a

cancer,

zealous

so

to protect

the dispensable (though
important) members, should be so
complacent
about
a
malignant
growth which threatens the heart
of our economic system—our free

Other

copper

Should the heart

to monopolistic
entire
body would

prey

Does it not

light

vances were

member, that member would

any

maker
sched¬

One

of bolts announced a new
ule

the

withholding credit,, they

or

the

ered.

on

alloy

products."

and

independent

tell you

nam

banks!

I

Need

that I refer to the growth

of

monopoly banking by means of
branches, chains, groups and hold¬
ing companies?

ers

Chicago on May 21, saw the in¬
stallation of the following new of¬
ficers of the
serve

— Kirk
E.
Wilmette; Assistant
Secretary—II. T. Wanberg, Evan-

Secretary

Sutherland,
ston.

Officers of Trust Division, IBA:
G.
Boeker, Vice-

President—A.

Bank

&

R.

Bunt¬

,

Trust

Officers of Installment

Division,

Forest.

Alternate

Committee

—

Vice-President,

National

M.

Bank, Cobden.

Vice-President,

National

.<

and Trust

L.

sion— Wade

S.

Vice-President,
A. G. Boeker,

Trust

they had not been satisfied
a
monopoly of the money,
but had bought control of the

presidents and

replace them with his men to gaiii
control
over
a
majority of the
banking and industrial wealth of
Germany. You can imagine my
feeling when, a few weeks later,
I saw a page and one-half story
about how a prominent branch
and holding company banker was

"looking ahead" by employing a
To

of

head

former

what

Let's let him

his

a

German

bankt

he looking ahead?

was

answer.

Said he of

latest acquisition:

"Few men
In pre-war
Germany, the big banks had large
holdings of stock or control of
the great industries. Bankers par¬
ticipated actively in the manage¬
ment—and knew
a
great deal
about the inner working of com¬
panies
." Manufacturers, busi*^
nessmen, advocates of free enter¬
prise, do you require more warn¬
ing? Hitler "looked ahead," told
are so

well qualified.

.

.

he

what

would

do

in

"Mein

conditions

ing company which controlled the
branch bank that had employed

world

economic

aggravated by

were

our un¬

policies caused the.

off.

are

not now that strength

banks

government organized the Recon¬
struction ; Financd
Corporation.
Said its origin a! director and later

chairman,:, Mr.

H. Jones,
writing of the RFC's, activities in
the'
"Saturday
Evening
Post":
"Our first .application for a loan
came

bank

in

branches
the

stars

Jesse

the

from

the

largest

branch

country,
whose
its state almost as

cover

cover

the heavens

...

.

During / the period between Feb.
15 and July 15, 1932, we lent this

$64,488,644."

Thus

the

banker

German

some

had

added

manufacturing companies to

of bank and non-bank
May I point out that

its long list

conditions in "pre-war" Germany
led

tp the conditions in post-war
Germany? The best way to insure

former.

the

fail,

to

to me to read later that the hold¬

against the latter is to avoid the

big branch and

began

then

holdings.

which in old days

our

Kampf,"

Victorious

England,

a

branch-

banking country, has nationalized
the Bank of England, and it is

predicted that the same fate is in
store for its
banks of deposit.
France had nationalized seven of
its banks and their branches 3
It has been easy for
governments to take over a handfull of banks with many branches.
year. ago.

.

I say again that this country's
defense against any ism is

best
our

15,000 banks, scattered the length
of the nation:

and breadth

nearly
Group Banking A Disguise
Some of you are

familial with
appearing, in a
ccmic strip who is called Anyface.
character

He

now

appearance he
doesn't hesitate: to

can assume any.

desires.

He

murder

loving father surround¬
his adoring family, or
babe in "its mother's
big. branch
and
group
banks.
While it made loans to all classes arm. He even kills a bridgrfptbe
.oibanks (not all banks), the rec¬ and, by name of his ©biUty.to
ords show that the top 2% of the change his features, substitutes for
banks got $4,000,000 more than the her at her wedding to his arch
bottom 69.9%.
Even such her¬ enemy.
But whatever form he
culean" efforts
could
not
save
takes, he is the same dangerous

State

Division—

wardsville National Eank & Trust

'

for

with

ed

an

Vice-President, Ed¬

Co., Edwardsville.

ing, but he took over their direc¬
tion and found that they fitted

proceeded to do
almost all of it. It was no surprise

,• Once
embarked upon the new
policy (for the United. States) of
underwriting banks, the RFC ad¬
vanced tremendous sums, to our

State

<

total

banks,

a

Cashier,

Gardner.

tied up in our closed
which failed to reopen
after the banking holiday."
Meanwhile, other countries were
also saving their branch banks*
Mussolini kept Italy's from fail¬
the

30,812 banks as of 1921
and thereby creating a badly overbanked situation, which combined

to

Branch Banking Unsuccessful

Cashier

Moline.

Allison,

Bank,

granting
func¬

governmental

state.

B ank

$1,300,000,000 in United States
was more than half

branch banks

did Trials come to falling on that

Officer, First National

Moli'ne,

the

and

after

Even

(a

tion)

bank

C.

First

Vice-President, State Bank Divi¬

Exchange

until; 1932,

because when

Carthage.

Toline,

1791

Moved earth and heaven;"

ReU, President,

Bank,

between

charters

.

Vice-President, Savings Di¬

vision—Theo.

of

organized

Civil War, only one remained in
1865.
We continued this policy

State

National

Division—Fritz J.

Bank

letting them fail. So, of the hun¬

"We

Member

Lockard,

country,

dreds of branch banks that were

group

Nominating

State

branch-banking

a

originally followed the policy of

our government kept hands
However, evidently

American Associa¬
tion session of the Convention,which was held May 20, the following State ABA officers were
elected:
Members
of
Executive
Council — George
C.
Williams,
President, State Bank and Trust
Co., Evanston; Norman B. Collins,
President, National Security Dank'
of Chicago.
Member Noniinat-ing Committee—Philip L. Speidel,
President, First National Bank,

First

as

wise national

During the

Lake

China,

failure of almost half those banks,

Centralia.

this

to arrest four bank

multiple bankingchain, group or holdmg
company — leads
ultimately
to
either complete monopolization' of
banking or the complete failure
of the chain banks. It is usually
the former, because after the can¬
cerous
growth has become en¬
trenched, the government cannot
permit them to fail, and therefore
must step in and underwrite them.
Among the countries which have
had to rescue their big branch
banks prior to World War II are:

that

tary—Dewey M. Beck. Officers* of
50-Year Club, IBA: President —
H. M. Merriam, Illinois National
Bank, Springfield; Vice-President
—Harry Kohl, Old National Bank,

19 of which, with deposits of over:
$1,300,000,000, and 494 branches,
which had been kept open with.
Reconstruction Finance Corpora-,
tion money from 1932 to 1933,
were
unable to reopen in 1933
after the banking holiday,
and

branch,

with

Baird, Millikin Trust Co., Decatur.

our

unrestricted

The United States, which started

Trust
Officer,
Mercantile
& Savings Bank, Quincy;
Secretary—Kirk
E.
Sutherland;
President, Farm Management SectioiriLRalph H. 'SVIcAnrilty; Illinois'
National Bank, Springfield; .VicePresident,
Farm
Management
Section —W.
P.
Scott, Peoples.
Bank, Bloomington; ' Secretary,
Farm Management Section—J. H.
ing,

banks

are

Japan, South
Africa, Denmark, Austria, Italy,
Germany, England and Canada.

Co.* Edwardsville;

Trust

Vice-President—Robert

are

ted

at least $2,000,000,000 was
up in the collapse of 30 of
own
branch-banking banks,

principal industries, A few years
ago I met a former German bank¬
er who told me that when Hitler
became - Chancellor h& had only

Australia

National

Edwardsville

there

that technically fall into the above

rendering
good service, and are run on a
nigh plane. Yet, no one who is
aware of the facts can deny that

Association, who will

President—George C. Williams,
President, State Bank & Trust
Co., Evariston; Vice-President —
Harry E. Emerson, Cashier, First
Bank & Trust Co., Cairo; Treas¬
urer—J. Weir Elliott, Jr., Cashier,
Elliott State Bank, Jacksonville.
Continuing in office, SecretaryHarry C. Hausman, Mundelein;

President

that

realize

classifications which

for the year 1947-48:

Assistant

Monopolistic
I

1930 to*

States bank failures from

perfectly into his plans. Hitler
found Germany's banks even bet¬
ter instruments for dictatorship,

Unrestricted Branch Banking
The Inaugural Luncheon of the
Illinois Bankers Association's 56th

Convention in the Palmer House,

tied up in United

$3,000,000,000

decrease

the

eas¬

ing in conditions this year. Supply
pinch is most severe in sheets and
strip but plates are also very ac¬
tive, with tank fabricators busy,
railroad equipment needs expand¬
ing, and manufacturers of large
line pipe pressing for tonnage.

postponement of coal wage ne¬
gotiations
has
riot
materially
changed the* belief that the coun¬
year.

Free Men

mony at the Senate Small Busi¬
Subcommittee hearing indi¬

Lending
IBA: President—Bar¬
tholomew
O'Toole,
President,
from
customers. Dealers' stocks
Pullman Trust & Savings Bank,
are low, however, with steel mill
Chicago; Vice-President — Robert
and
foundry
requirements ex¬
J. Goll, Executive Vice-President,
pected to
continue
heavy for First State
Bank, Harvard; Secre¬
months to come, the feeling per¬
sists

Banks, Free Enterprise and

ness

ating rate of steel companies hav¬
ing 94% of the steel capacity of
the industry will be 97.0% of ca¬

lias dropped from around 15c a lb.
to as low as 7c a lb.

Fiee

Testi¬

*

cates the large aggregate tonnage
offered in this market is of the

oper¬

:from $175 a ton to as high as $300
© ton.
In the past several months
the going price in the gray market

"In

uricertain.

illegal operations has been

companies

steel

many

sail sales have been individual ones
©nd have involved 1 to 10 carloads

Offerings now are reported at
prices considerably under recent
high levels. Extent of trading iri

-

and branch
proved to be
the "Achilles heel" of our banking
structure. * For
the
"American
many

of

the

banks, which

Banker"

group

were

stated

that,

"Of

the

a

by

innocent

individual.
bol

of

He could be the sym¬

branch, chain, group, and

holding company banking.
For
they change * form and name as
easily as
'-When the fail.

x

.

•'

t'.H

\.l

V'»v 51

• 1 '

^Volume 165
of

ure

so

Number

-

"chain"

many

brought that
they began

banks

banks

into disrepute,

name

to

THE COMMERCIAL & FINANCIAL CHRONICLE

4600

call

companies

were

prohibiting
<or
restricting branch banking, they
formed holding companies to cir¬
the

banks

companies

used that fact as an
argument for

branch
read

banks.

to

I

should

tha

to

cop

precipitated the
holiday of March, 1933:
"Business

presented, that if

do not adopt

we

branch

banking,

the

Banks.

-

.

holding companies and, the banks
which they hold are
going to be
pretty
know

that

here, but
whole

the

wrecked.

soon

it

I: do

ought to

be

stated

we want to consider this

problem

in

frankness.

existing requirements

law

not

were

into

put

If

of' the

effect

by the
Comptroller of the Currency, there
thousands

are

have

not

whose

of

banks

which

closed

their

and

yet

surplus

capital

doors,
have

been

impaired, which would have
to be closed up today, and unless
we
do something of this
nature,
that

part

the

of

country

where

these

holding companies exist—
they are not confined to any
section, though perhaps they

and
one
are

more

in

numerous

western

section

the north¬

of

the
country
in
any
other section—are
going to find themselves in inex¬
tricable difficulties."

than

.

.

Let

also quote two statements

me

made within almost

other

the

by

year of each

a

top official of one of
holding companies that
a

big

banks

many

states.

in

The

several

first

was

made to the Senate Committee

Banking and Currency
■
f;"7 \ ;;

on

March

on

2, 1931:
up of

better

a

7/;:

:

.

responsive
and
than any that can

-more

system

devised
talk

some

.

.

There

.

has

been

about branch banking.

not in favor of branch bank¬

am

ing. I

am

I

and

why

definitely opposed to it,

will

tell

I

the

you

reasons

afraid that, given
a
start, the thing may develop
into
that
(nation-wide
branch
banking) and we feel definitely
.

y

.

am

,

that

the

ownership

business

that
-

'

by, and the
of. the people
institutions
; is

interests

own

more

System

by vfneii and
and

our

.

assured

The

same

under

second

Committee

system."

our

made

was

.

the

March

on

to

"The

next

terest to
even

us

as

of

bankers, and

greater importance to the

communities
ter

group

we

serve, is the mat¬

branch

banking
We
have learned by our
experience of
the last three years how much
.

effective

more

branch

.

.

banking

would be than
group banking
A
year's delay would be

.

.

.

fatal.

Every bank which closes between
now
'

a

and the next year represents

local

might
branch
<

tragedy.
have

Each

been

one

banking at this time

forever stand

legislative

as

a

courage

will

reproach to the

body that might have

saved it by the exercise of

•

by

when it

was

political

most needed."

Ci These arguments were similar to
those of the fellow who murdered
bis parents and then'-begged for

mercy on the ground that he
<

•

iani orphan. But such are the
tics of "Anyface banking."
-

was

tac¬

The term "fifth column" origi¬
in the Spanish civil war.

blue

book.

They

are

of

all

,

Detroit

deposits,

Twenty in¬

dependents

control,

and

have

the

remainder.

one of the latter has

minority

helps

area

loaf,

most

so
have our independent
aided the economic devel¬

banks

of

opment

elimination

brought
other

such

of

stagnation

countries."

banks
worse

or

The-

>

or

is

more

100

banks. Free banks

free

city.
385, nearly

free enterprise. Both help develop
free men.
; ,
:•;/
"
The medical authorities say that
cancer

be

must

treated

for

Guardian,

175. for

Group banking
advantageous than
the" unit form, but more cumber^-

they find

.

some

.

.

closer

concen-

,

have

let

branoh

and f

key'vcities, and. the same is true
ofthe limited holdings of the First
Nationalin

the

Detroit

Bankers

states have branch

banking 'under 'group.
The best banks in-the
control and can keep it;so,;if
they 'larger cities, operating profitably,
remain vigilant.
They are"; pro¬ are the only ones susceptible to
tected from outside branches .by
groupmembership on a, sound
our
Federal prohibition against business basis,
For the smaller
the : establishment
of
branches places, many believe branch bank¬
.

state

across

lines. .But

these

are

Mamnot

Lines

waffe

therefore

against

seek

the

Federal

-

Luft¬

law

.

;to

banks

the

would

have

(on

them

removed

as

tional
and

later.

But

new

Admittedly,
a

from. the

seek.

.Others

their

wounds

have,,been
the

temotation

bpving
A

7

quality

ppnple

less

However, the above quotations
show that the branch bankers had
already

what

they've

built.

The

is shown by results. From
and
the
public's

are

available

has

at

home.

been

'Mass

applied

-

to

better

on

than

files

on

and

any

one

Money can.be
the best possible credit

and * information

instead

of

being wasted in 'charge-offs.\
"Securities and security mar¬
kets,, increasingly important .to
the ,.banks .with collateral loans
mounting and investments grow¬
ing; can be better studied and

to

seen

They not only make possible the
evasion-of laws respecting branch

petitors had done so,, and they felt

up the market
buying, glutting the market in
selling, can be avoided.
"Millions in correspondent bal¬

banking,
designed
•

out

have

they must protect their position;

ances

The

but
to

all
!

the

5 protect

funds1; Where banks

are

technique

basic

"

laws

depositors'
prohibited

ijrom

investing or, lending, the
holding companies can. Controlled




the

better

bonks

companies—which
in

ones..,We

form

holding

they

opposed

principle—because

their ;

quently at
peting

a

with

good times.

is

disadvantage in
the

,

other

type—in

from

the

the charter of the branch-

are1 conserved.

doesn't; need to carry
as

One
as

group

large out-

50 units.

The

sayings
gan.

hands

of

of

the

tated

conclave

the

officers

and

war

their

own

Corpora¬

many

power

of

have

peace, as

wishes.

best suited

The

forms

might for

your government

dic¬

highest
you
to

your

compelled

or

to

this
from its

and

would

choice

make

the

few,

a

of

time

the need

for authority to

remain but its living spirit would

holding

companies.

have departed from it."

control
Legislation

vestor

Trust 60. Section of

that

men

D.

Kline,

newly

Pennsylvania

ciation

and

are available for construc¬
work in Detroit and Michi¬

And, when it is

necessary to

for

Keister

declared

yardstick
the

can be
trustee's own

Trust

be

of

history
of banking in Pennsylvania, PBA
will
have
a
complete,
factual
knowledge of the smaller trust
departments of State banks, en¬
abling the Trust Section to out¬
line suggestions that will permit
trust departments now being op¬
erated at a loss to show a profit,
Ray W. Steber, trust officer, War¬
ren
Bank & Trust Go., revealed
in
his
report
as
chairman
of

Asso¬
Berks

vocal in

more

to

lators.

Co., Reading, to
presenting their
public and legis¬

the

He

' said
trust companies
getting only 20% of trust fi¬

duciary

'

For the first time in the

elected

Bankers'

President

County

were

or

judgment in making trust invest¬

urged by Sid¬

were

Chairman of the Trust Section of

views

Mr.

rule

ments'."

Trust
ney

rule

'no

substituted

Pa. Bankers Meets

appointments,

and that
objectives
larger share Smaller Trust
Departments Com¬
of trust business. The foregoing is
mittee.
•
•
from
an
Atlantic
City account
Besides
the
election
of
Mr.
May 22 to the Philadelphia "In¬ Kline as Chairman of the
Trust
quirer" by its staff reporter, E.
Company Section succeeding Miy
S. Banks, who, in detailing the
Wandell, other officers of the
meeting of the Trust Section also Section were noted
of

one-

the

Section's

should be to

secure

a

as

said:

L.

Louis W. Van Meter, VicePresident, Provident Trust Co.*
Philadelphia, ! Vice - Chairman;
and Robert U. Frey, Assistant
Treasurer, Pennsylvania Co. for
Banking and Trusts, Philadel¬
phia, Secretary-Treasurer.

and
out-going
Chairman
of
Section, -called on trust men to
operation of

their

said

that,

"realize

should

_

He

activities."

trust

.they

service is worth its hire and
that

a
•

on

**

premise

stated

advices it

same

that

Clinton

Vice-President

Dauphin

pany

:of

was

L.

Deposit

Harrisburg,

.

said

Garrett,

Jr., Lancaster; Frank.
Altoona;
Edward
W.
Wentworth,
Frankin,
and
E»
Alexander Hill, Pittsburgh.
Marsh,

Com¬

in

his

'20-year fight of Philadelphia
of prudence in¬
rule
legislation
is
once

mem¬

Pottsville; Samuel F. Rockafellow, Easton; Malvin F. Gatalder,
Williamsport;
Robert
Y.

also

Officer

Trust

Committee

Kenneth B.

are:

Crawford;
Philadelphia; Darwin S. Harter,

Keister,

Trust

and

Executive

bers

report as Chairman of the Com¬
mittee on Trust Investments that
the

in

York "Herald-Tribune:"

be "realistic in the

of

follows

Atlantic City advices to the New

Wandell, Execu¬
tive Vice-President, First Na¬
tional
Bank
of
Wilkinsburg,
Sterling

Hunter President of

vestor

doomed

more

to

failure.

Mr.

Boston Bank Officers

Keister further

said, according to
the
"Inquirer" advices by Mr.
Banks, that opposition
on
the
part of certain banks in the State
.

inclusion

to

of

common

John

in

the

bill

committee.

From

ficers'

of

Bank's

account,

which

a

of

considerable

legal

trust

"The

the

prudent

in-

The

Shawmut Eank of Boston*

would

for

Dearborn,
State
Co., Vice-Presi¬

E.

Edward
Norris;
Savings Bank, Secretary;
Harold A. Yeames, Webster 8s
Atlas National Bank, Treasurer.
Director selected, the "Her¬
ald"
stated,
were
Leone
V.
Gould, Wildey Savings Bank,
and Edward E. Chute, National

ments.

"Arguing

that

reported

Home

degree

compromise measure
permit as legal investments
invest¬
ment grade, out-of-State munici¬
pal bonds and most high grade
listed preferreds.
■
* /

it

President;

invest¬

corporate r bonds ' of

Boston

are:

Trust

Street

.

to

of

dent; Harold E. Randall, FirstNational Bank of Boston, Vicer

adopted by the present session of
the Legislature which, while not
legalizing
common
stacks,
will

most

23,

Harry

part as follows:

result, he [Mr. Keister]
said, his Committee was seeking
to
have
a
compromise measure

-

May

we

a

field

Association

stated in the Bo:ton "Herald,r

other officers

Mr.

also quote in
"As

Hunter' of the Federal

elected President of the Bank Of¬

stocks

dying in

C.

Reserve Bank of Boston, has been

was

result

broaden

tive

secret

System, the Fed¬

Insurance

the

hands

organized money

tion, and the Comptroller of the
Currency have repeatedly sited

the

of-town balances
com¬

Deposit

in

com¬

fre¬

Presi¬

a

my

test; yet, if you had not conquered,
the Government could have passed

The Board of Governors of the
eral

handled.) Bidding

'

conservative .banker

strength
institu¬

great
strong

if intangible, ways."

Federal Reserve

would

drive

the

the

already

banks for passage

through the holding company, a
device for evading the laws of our
states
and
Federal Government.

perfected

of

to

changes and advantages
largely internal, reacting to
advantage of big and small

the

bank

"Mof^adequate banking facili-

spent

variation of Cresham's Law in that

tend

value

are

' Each

enthusiastic

are

They carl carry
cheaper research

bad
money ; drives '-.qpt
I have called attention to a

banking practices

bankers

the ;bank could
afford.

at

good.
worse

state

company.

best method for each minute step.

desirable and kept the better.. He
then prooounded "Cresham's Law"
—that

large

banking., Experts can counsel to¬
gether-to ascertain and apply the

bank-1

soent the

was

men

second
Bank
of
the
United States. Referring to this in
his Farewell Address, he said:

tions. The

na¬

Banking, A More Adequate
•. ''
System

production'

unequal

circulating

were

time,

some

of

one

trust

large

one

bankers'

:,

.ties

.'..■7;'.77'."

mo'^evs

have

"standpoint,- the advantages are:"

licking

a

the

added

In the

the

Cresham noticed

named

when

in

engage

spree.

man

that

to

a

the

banking

follow

not

secure

insure

.

should sell their
trust service at cost plus a rea¬
sonable profit."

success

we,

regaining strength.
remove, from* all (the

should

Com¬

local one, not a stock¬
jobbing operation by outsiders. Its

end gradually

We

built.

move was a

14 •years;

nast

do

from

renew

,

about

above

legislation.,

and

"The

reproach, and these have nothing
fear,

.

Local

of

some

institutions

to

State who made
possible the development of our
banking system by refusing to

kept strictly
separate from security and trad¬
ing departments, a practice which
many

greater service

help

proud that it

am

dent

are

advantage of the best features; of
both methods of operation.

a

have

ones
,

manner

I

.

and.

will

.

enterprise for long—or free
eventually.

plan a depart¬
departments
are

.Trust

stronger

that

out

Bankers

ment.

is holding both state and
national charters in order to take

ing companies ooerating on Dec.
31, 1931, only 42 remained five
started.

Detroit

no

country than

continuation of free banks, with¬
which there can be no free

hardly

.

financing,' Guardian han¬
through Michigan Industrial
Bank, an industrial financing unit.

disappearing. Both the

now

one

It is true that of the 97 bank hold¬

years

it has

group

threat.
But cancer continuously
threatens the person once affected;
and
likewise multiDle
banking.

these ooerate in

are

groups

whole)

the

could

Small loans, 'con¬

sumer

Guardian and the Detroit Bankers

One would think that the sorry

companies

banks

his

to

dles

curities companies and trust insti¬

tage of the slightest technicality.

ing

structure

tutions

advan¬

take

individual

peting facilities are being merged.
Excessive branches, duplicate se¬

instances of how branch and hold¬
company

"Each group now is coordinat¬

ing, shaking down, smoothing out

bring holding companies into con¬
formity with the law they how
violate in spirit.
There must be
no loophole, for we have
repeated

ing

.

ing the only solution.

holding companies. ' We

of

law

,

stages if cure can be} ex¬ 7 ' "Outside Detroit, Guardian owns
pected- Unfortunately, a'-few -of [ the best and
strongest banks in
states

"All banking services are being
rounded out in a manner which
make possible.

We

distinguished

our

he could render

the

.

early

our

safety to the depositor is afforded
by more efficient methods.

more

.than that of

its i tration.

in

about

Detroit Bankers.

essential to

are

Greater

rates.

Congress,

guest of the evening for introduc¬
ing and setting hearings on a bill
looking toward our objective,
X
firmly and sincerely believe that

Branch

the

in

them

our

mergers

point.

accepted

Total branches number

threatens

better

of

consideration.

no

independently,

strong

a

banking

Al¬

Members of each

o p e r a t e

has ; group
to i That's
de¬

same

one

structive disease which eliminated
now

ag¬

unit of each group is

every

the result of

in recent years.

The

country.

our

rapidly than the

more

finished gregate for the independents.

the

produce

two large groups are growing

in its .much

flour set to work and each

sessions

indebted to

are

depositors and customers alike in

of 'the

batch

permits

many,

banks—potentially another
system. As tiny particles of yeast j group. Deposits and resources of
a

have

holdings in several small out-of-

nomic counterpart of our political

throughout

before.

of

Detroit

its community interest is the eco¬

scattered

several

,

But

nated
•

them.

its

which .to

prevented

for

.

56%

record of branch banks and hold¬

subject of great in¬

asked

Guardian had 38%. Total: 94% of
all the city's deposits.

29,

.

Michigan and De¬

perfect, but it is better than
any
yet
devised.
Our banking
system, with its decentralization,

1932:

of

their

been

ownership

which

possi¬
Detroit

dreamed

financing

couldn't

.

,

local

make

resources

Michigan hasn't suffered the
"No nation but the freemen of
growing, working with increasing
smoothness and efficiency
bank
failures
of
other the United States could have come
.In heavy
March, Detroit Bankers banks had regions, so its people do not grasp out victorious from such a con¬

Our political system was a
experiment.
It has never

new

or affilia¬
huge groups

Two

.

an

business

a

organized—

branch,

.

integral part of busi¬
Their directorates read like

ness.

religious

the opportunity to earn

living.

.

Business

They, are

who sought
freedom,

women

and

banking has be¬

than 85%

route

troit.

•

The United States .was, founded

political

Detroit

more

^ bulwark lower

Political
■'! /

Our

(group), set-' holding
company banking develop
ownership and control, with
beyond the hojpe cf cure. But most

ritory,,

I

of

Counterpart

I consider this

its vital interest in the local ter¬

be

Decentralization—Economic

-

in

by the group,

,

controls

different

.

come

tion
■

banking

Automobile City
Expects Big Things of the Two
Mergers Now Covering 23 of its

on

superiors

in

but received

"Massed

7.

seeking this has been introduced

More efficient utilization of funds

Michigan, whose

Record" of May 10, 1932:
"Mr. Glass.
It is the view
the committee, upon information
State-wide

large group

ble

failure

the beat.
When their
backed them up, they
have
been
openly defied. That
may be the "German way, but it
of certainly is not the American way.

like

statement by Senator Car¬
ter Glass from the
"Congressional
a

banks
in
fair

group

showing

the

ing.

which appeared in a national
pub¬
lication in 1930.
It is about'two
banks in Detroit,

of the

manner

fine

a

of town,

get a quicker and better hear¬

can

and

(3035)

weather, as is shown by the fol¬
lowing quotation from an article

another.

in

branch

,

out

go

Banks

The

v

make

shifted from one

to

transferred

into

convert

;

of questionable

Assets

are

sidiary

Then, when
by the holding
fail, they

permitting them

the

'sub;
Even the
examiners
of
the
supervisory
agencies cannot compete in such
a shell game.
Some who-were too
curious
are; said
to have been
nature

about to

were

orders.

so

laws.

owned

•"'*•'•

refuse Toans
controlled
if the holding, company

competitors of

to

confronted w±th laws

cumvent those

Showing of Branch and Group

to ^controlled

.

cpmpames,- and must:

themselves

"group" banks.. When they

loan

must

-•

entertainment
be

Elliot

man;

S.

Ralph

Edward

A.

committee

■

will

Boardman, Chairr
Young, Secretary;
Bullard, Carl W*

Trempf and David Reed.

j

8

|

Estate Planning
all

living.

Conversely,

activities

our

during

"after-death"

atlectea by what we do

are

while
of

that

life

"after-death"

by

guided

our

plans.

estates will avoid death taxes.

may

Home

a

Estate Plan¬

compare

ning witxi the Simple analogy of
building a home. When such a
project is contemplated, the pros¬
pective

usually contacts an
architect who drafts the general
plans. In other words, the archi¬
tect blueprints the plan which will
best meet
the
owner's
require¬
owner

ments.

The

second

step is the
employment of a contractor who
the wishes or ideas

will carry out
of the owner

evidenced by the

as

architect's plans.
the retention of

plans

and

architect,

The final step is
legal counsel tc

specifications

the

of

thereby

insuring the
plans
In Estate Planning the individual
may consult with an Estate Plan¬
ner,
who, in
conjunction with
other specialists, drafts the plans
required to accomplish that indi¬
of fulfillment of his

owner

vidual's

Disposition

methods

of

liquidation at

ascertain the

objectives.

The

lawyer

then prepares the necessary

legal
documents which incorporate tne
wishes of the
individual, while
the life insurance underwriter, if
deemed feasible, may prepare ad¬
ditional, or revise existing, poli¬
cies. Lastly, the agent, executor
fulfillment of the provisions
of the estate plan as set forth in

contributed

maintenance
thereof, regardless of the registra¬
tion of ownership.
Furthermore,
many so-called "gifts" have been
thrown out by the tax courts be¬
the major cost or

to

the donor continued to re¬

cause
ceive

(6)

(7)

adequacy of the in¬

program.

of

the

tablishment

of

life

a

insurance

trust.

(8)

Consideration of

all

part of present property.

a

or

(9) Make

indirect, from the property in¬
volved.
One other related factor
or

will.

a

careful

ments.

(11)

is

the

necessity

ficiaries

heirs

or

the

for

under

a

will.

Such consideration may

safeguard
from added tax liability.

estate

an

The

foregoing

give

will

some

the

how

simplest
forms of estate planning can mis¬
indication

experienced

if

carry

of

this field

persons
not consulted.

are

in

Purpose of Estate Planning
Estate

planning is a means of

systematically and logically ar¬
ranging all property in accordance
with a pattern which will provide
the greatest utility either for the
owner

those

for

or

who

of

personal

family relationships with the
agent, executor or trustee.
the

If

above

steps

carefully by

consid¬

are

the

individual
with his financial adviser, with
his attorney, with Jtiis life insur¬
ance underwriter, and, where nec¬
essary, with other specialists, it is
quite likely that the objectives of
all
estate
planning will be at¬
tained.

At

the

present

to

is

insurance

estate

provide cash

that

part of it
will be jeopardized; and that the
an

so

best efforts and

agent, executor

the

in

case

of

a

ercised
wishes

that

so

of

the

such

judgment of the
trustee be ex¬
the

desires

individual

and

will

be

fairly

able

this

.

important

very

fyjpre is being written
and

Lack

of

ciaries

day
mediums

the

importance of it cannot

simplest forms
planning today are:

estate

of

(3) Gifts of property.
The need for estate

planning

on

overall basis by most individ¬
uals may be determined from a

an

these

of

simpler
forms of planning.
Few people
actually even make a will. Rec¬
ords throughout the country will
substantiate this statement and in

county over 80% of the
people who died in 1945 had neg¬
own

lected to make their wills.

cases

weakness,

made

procrastination.
advised, in many

wrongly,
be

other

that

such

action

if they
dispose of

unnecessary

plans

estate

care.

Persons who

beginning to accumulate

to

prop¬

Estate
Planner and make provisions for
an estate plan which will include
the types of investment for sur¬
plus funds; the amounts to be
placed in or earmarked for each
tion

of the proper mediums for
accomplishment of all estate
objectives. Estate plans which are
made early in life provide greater

the

that the desires and ob¬

jectives cf the individual will be

achieved.

The best way to assure one's self
of

accomplishment of desired es¬
tate objectives, both present and
future, is to make all plans imme¬
diately. Even if some plan has
been

made, it at least should be
reviewed.
The
following steps
with
ner:

design
are

to

or

should
an

be

taken

in

consultation

experienced Estate Plan¬

quently, people—and

men

in par¬

(l) Analysis
all property.

'i

'

ticular—merely

transfer of give
part ftF their property dur¬
ing their lifetimes. They aite fully
-confident that by such action their
away




of

(2)

nature

of

.The

his

of

last

immediate

was the grandson of
Commodore Matthew C. Perry,

who opened the ports of Japan.
A
grand - uncle,
Commodore
Oliver

Hazard

Perry,

the

was

hero of the battle of Lake Erie.
He

born

was

City,

was

in

vard

the

in

New

York

graduated from Har¬
1872, and received a

degree

member

Columbia

from

of.

Congresses.

the

At

47th

one

sons,

plans already formulated.

-

;

Affairs Committee.

Spain

as

in

50th

to

level which has prevailed

a

since

the

total

is

of

start

the

Tms

year.

about

500,000 above the
postwar low of the closing months
of 1946.

"In

retail
distribution, dollar
during March moved ahead

sales

seasonally, without, however, uni¬
formity in movement for all lines
retail

some

and in

lines

non-durables

luxury fields, but the
overall volume of durable goods
continued to

consumers

"Business

continued

add

to

to

inventories, though at a somewhat
slower rate than in the latter part
of

1946.

A

notable

first

quarter

development has been the sharp
rise in the inventory-sales ratio
for wholesalers, after adjustments
for; seasonal influences. This re¬
flects earlier price increases, bet¬
ter- supplies and some slowdown
in the movement of goods, to re¬
tailers.
total

turers'

value

of

manufac¬

shipments for
$13.9 billion, $1

reached

rise

He went to

Minister in 1888.

ventions of that party from 1890
to
1912.
He
served
in
the

March

billion

February,
due

was

However, the
entirely to the dif¬

department and in World War

when

was

the

in

the

good

two

promoting

At' its

the
ada

various /other
■

•

1946,

,

but

'

prices

because

were

higher there was apparently little
increase in the volume of output.

"Practically all of the rise in
the gross national product is trace¬
able to increased consumer spend¬
ing.

This

at

was

seasonally

a

adjusted rate of $138 billion, com-:

billion in the
$121 bil¬
of 1946.

$130

with

pared

third quarter of 1946 and
lion in the first quarter
Much

of

increased

the

consumer

spending reflected higher prices.
levelling

"There is evidence of a
off

in

capital
new

expenditures by
plant and equip¬

housing construction

ment and in

during the first quarter of

1947.

However, in the public utility.and
construction ' fields

commercial
the

Daily

months.

trend

upward,

still

was

and

annual' meeting

burg,

as

Association

He
that

found

in

are

be that the

may

is

executive

more

closely in touch with the chang¬
ing requirements of today and
has less regard for the traditions
of

yesterday."
"There's

many

older man

young

"but

the

banks with

65 is

pension plans to re-

officers at the age of

tire their

.

an

ideas," he stated,
growing tendency in

with

■

In a report
election of officers, and the
ers at the concluding day's
of the convention, E. S.

executives
It

younger

of the Association to succeed

Mr. Hopkins.

had

he

command.

President, First National Bank of
urer

that

said

public relations seemed to
more effectively "where

not-so-old

past two years, was named VicePresident and Donald P. Horsey,

Conshohocken, was elected Treas¬

bureaus to sup¬

thrive

the

for

more

credit in competition

with us." :

Hopkins, President of
Treas¬

the

and

ply >that

in

the Titusville Trust Co., and

of

on

more

tion.

urer

,

ple, we shall have the threat of

President of the Associa¬

Russell J.

goods and services
expand."
3,
;

available," he declared,
terms acceptable to peo¬

credit

"and

President of WilliamsNational Bank, to succeed
Edmund W. Thomas, President of
the First National Bank, of Gettys¬

Executive ob-

significant.

solescence is an indulgence that

few businesses can afford these

days.

,,

Co., of Rochester, N. Y., and Pres¬
ident of the Financial Advertisers

"Banking, perhaps more than
any other business, is a matter
of human relationships and if
business in general is becoming
concerned about its public re¬
lations, how much more should
we,
in banking, be concerned
about our public relations.

Association, that good public re¬
as necessary to a bank

business of ours that needs to

convention

the

that

was

told

by

lations "are
as

good bond list. In fact, with¬
good public relations, there
come a time when we will
have
to
concern
ourselves

a

out

with

a

bond list."

Stating

Banks

of

•

fourth

the

over

Shotwell,

in

"As

that

his

long

to the

"In¬

indicated

Mr.

advices

further
as

as

.

-

"There's

austere

saying:

shouldn't
and

tight.

people

as

to the ability and willingness

on

the part of banks to make

done
as

as

be.

business
agreeably

business at the

still have, I fear, a

reputation for sitting

We have over-played the

massive, passive guard¬

of other

people's funds.

thought that*

a

It

bank in a

community should be a
force

this

no rea¬

cigar store.

of

is my

I see

banking
be

pleasantly

notorious

role

about

nothing
formal.

"Bankers

ian

there is a shadow

or

why

son

corner

Mr.

of doubt in the minds of

1

diplo¬
•

total

port

.

agreements.

gain in the dollar
quarter of

This represents a

Association elected George Porter

fisheries dispute:'with Can¬
and

product—which represents the to¬
tal value of all goods and services
at a seasonally
adjusted annual rate of $209 bil¬
lion in the first quarter of 1947.

in the country—was

At¬
lantic City, brought to a close/on
May 23, the Pennsylvania Bankers

Marine, quirer,"

settlement

Department of Commerce
that the gross national

estimates

Shotwell Elected Pres.

neighbor policy with Goodenough

America,

data the

continued to

the

in

Goodenough
said banking was especially vul¬
Army Quartermaster Corps. nerable to public opinion, Mr.
active

1947, the Increase resulting partly
from higher rates of pay in the
manufacturing industries.
"On the
basis of preliminary

days

at the

was

the first quarter of

during

come

net exports of

age of 67, he
commissioned a captain in

He

individ¬

to

payments

"Income

uals, which represent the total of
salaries and wages as well as all
other types of money income, con¬
tinued at an annual rate of $177
billion in March, an increase of
about $20 billion (or 13%) from
March a year ago. There was an
increase
in
nonagrteultural in¬

ference in the number of working

Spanish-American
War
as
a may
major in the inspector-general's not

I,

tries.

business for

"The

above

goods inctus-

ly in the nondurable

some

was
Swavne
P.
Goodenough,
ViceForeign President, Lincoln-Rochester Trust

Democrat, Mr. Belmont was
delegate to the national con¬

matic
,

per¬

time he

Chairman of the House

Frank discussion of desired

objective^,

ileigborhood of 2,500,000

of the
speak¬
1876.
session
After practicing law for sev¬
Banks,
eral
years, he
was elected
to staff reporter at Atlantic Citv for
Congress in 1881, and was a the Philadelphia "Inquirer," stated

law

South

Review and reconsideration

any

(3)

the

of

goods manufacturing.

Unemployment rose slightly from
March to April but continued in

family, he

the American Merchant

for

servicing those who
benefit—j-js missed. Conse¬

ing his career:

a

Steps in Estate Planning

—formulating

single pattern

former

A

their property. Again one of the
main purposes of estate planning
a

ing to the usual seasonal pattern,

shipments declined slight¬

average

Of Pa. Bankers Assn.

Spain, died at Newport, R. I., on
May 25.
Mr. Belmont, son of
August Belmont, was 96 years of
age.
Associated Press accounts
had the following to say regard¬

an

type of investment; and the selec¬

assurance

,

United
States Minister Plenipotentiary to
Belmont,

Perry

planning

being accumulated—be planned

with the utmost

Most

failed to take that step
because of ignorance or that hu¬

would

all

estates—those in the process

ture

people

were

not

erty may consult with

(2) Transferring property prior
to death.

discussion

should not overlook the

is concerned with present estates.
It is likewise important that fu¬

are

(1) Making a will.

that

fact

of

The

Others

have

Future Estates

be! over-emphasized.

man

benfi-

tinuing benefits from these prop¬

we

.

Perry Belmont Dead

serves

been made which will insure con¬

And

point that
proper estate planning is lacking
in many instances.
At the same

my

the

of

provisions

unless

Planning

It is apparent at this

brief

interests

best

the

Neither

months, employ¬

ports of small declines in employ¬

every

advertising

many

subject,

are

perhaps consider¬

estate.

real

recent

increase.

Much remains to be done

substantial busi¬

a

or

erties.

fulfilled.

time

estate

an

interest

ness

in

during April moved accord¬

moving to

on,

simple estate, let us say, consist¬
ing only of a home, a few securi¬

no

or

"As
ment

woefully lacking in its knowl¬
edge of estate planning as herein

.

sufficient

Business, official publication of
the Department of Commerce.

in educating all groups of people
Present Estates

the
of Current

issue of Survey

May

in

can¬
that

cur-y-

business picture is based on

article that will appear in

an

defined.

are

benefit from that property.

Even

following review of the

rent

in

public

general

being utilized to acquaint and
the
public with the
ties and some life insurance, there familiarize
the legal documents—either dur¬
is a definite need for. arranging great need for formulating good
ing the lifetime of the individual
estate plans. It is hoped that each
a
carefully drawn estate plan to
or after his death,
or both.
care
for a widow and children. of the specialists engaged in es¬
In fact, it probably can be said tate
planning will continue to
Cooperation of Specialists
that the smaller *,the estate, the educate the residents in their own
The Estate Planner, the lawyer
greater the need for making the communities on the worthwhile
and the life insurance underwriter best
provisions for members of advantages to be gained, from
each should play an important the
overall planning.
- •
;
family and other dependents;
role in all good estate planning.
When the general public be¬
hence, the greater urgency for
The cooperation of each of these estate
comes more aware of :the benefits
planning.
specialists can insure an individ¬
to be obtained from estate plan¬
Of course, it is equally impor¬
ual that the best provisions will
tant that adequate estate plans be ning and the specialists realize
be made for mefnbers of the fam¬
more fully their obligations to the
provided for larger estates be¬
ily and other dependents. -It has
residents of their communities, 1
cause
usually in such estates we
been proved time and time again
believe that estate planning will
find problems which are greater
that the trust instruments must
be recognized as a "must" by all
in scope and
also more varied.
truly and specifically reflect the
individuals. : *
''
Furthermore,
we
often find
in
provisions of an estate plan; that
to

segments of the economy, but these movements largely
celled each other out. At the same time the Department s.ated

of business. Sales volume declined

Education of Public

April
the
the

high level during

a

various

ment in soft

Development

and

ered

maintained at

was

uninterrupted expansion of more tnan a year was halted,
Department of Commerce said on May 26. It added that during
month there were small upward
and downward adjustments

the

although there were scattered re¬

(10) Preparation of legal docu¬

planning and designating of bene¬

Business

imme¬

an

diate plan for the management of

Reports
Expansion Halted in April

Although business

the

Determination

method of handling the insurance
proceeds and consideration of es¬

benefits, either direct

some

Review of life insurance to

surance

is subject to death

if the deceased

taxes

indicate

decisions

tax

that property

and trustee for the individual in¬
sure

later

a

date.

plan.

Commerce Department

certain

of

now

items in an" estate through sale,
outright gift or an irrevocable
trust; or the determination of the

property will accomplish even this
relatively small part of the over¬

contract embodying the

prepare a

It

no longer is possible to be certain
that the mere transfer or gift of

Recent

Similarity to Building
We

Consideration of tax liabil¬

all

transactions

and

are

many

(4)
ity.
(5)

(Continued from first page)

structure,
plans

Thursday, June 5, 1947

THE COMMERCIAL & FINANCIAL CHRONICLE

(3036)

dynamic
fcuUdiijg^'of that;

community .'Laf

BWWW*«W*i ^hTr«*^4^**-*V V^tfCWl4*4 hHWmWt*

[Volume 165

Number

4600

THE COMMERCIAL

and

People of Moderate Means Largest Users
of Trust Services Says ASA
People

jt
I

of moderate

means

the

are

largest

Findings of the survey announced
Woollen, Jr., President of the Trust Division

Fletcher

Trust

less

than

$7,500-$10,000

annual

an

$1,200

income

each,

of

with

meet

the

needs

every income

of

people

144,081

representative

companies

banks

includes

trust

institutions

the

having

income

an

United

bracket

of all the

they

income

over

$25,Trusts in the $3,000-

yearly.
$7,500 income
13.86%

of

have

of

represent

trusts
an

$4,557,

Harve

reported

is

H.

by

which

prosperity,

Second

Page,

Chairman;

H.

Douglas

adverse

stated,

method

finances.

the

St.

Louis,

Trust

Mo.;

R.

Assistant

Vice-President,

Hanover

Bank

and

Smith,

now

in

New York, N. Y.

pany,

the

to

depend

on

while the number of trusts in the

For

Business and Real Estate Outlook

more

Real

With

(Continued from first page)

ards

War

tion

costs

comparison only."

ficulties

The

good

for

or

;

"

-

■

t-.

More specifically we might de¬
scribe our situation today as a

II

Despite great dif¬
have carried through

years.
we

'

period Of prosperity overcast by
the fear Of'depressiQri, a time of

high incomes with low purchasing
time of industrial peace
and industrial unrest, an age of
scientific advance and cultural de¬
power,

cline,
of

an era of wars amid threats

and, peace ^mid threats

peace

of
;

a

°

wars.

/

:

/

multiply the contra¬
dictions. We might mention hous¬
ing shortages with rent controls,
declining
construction -; volume

higher building costs,
debt

government

for

lowering

with
go

with

taxes,

low labor

Some

huge

a

programs

high

great

unemployment
It

is

true

or

and

that

around

the

have

others

have reached

a

new

pretty

The

well.

in

is

economy

shape.

bulk

done

of

reasonably

/

our

good
,

.

,

Potential Business Trends;

his

balance

and

tum¬

went

bling down amid much clatter and
confusion.

His

wife

called

out

sharply: "Is that you, Dolan?" j
He jumped up, raised his fists
and shouted, "Well, it better be!"
I

am

not

suggesting that

Uncertain of
the

or

too;

where

of where
jus

our

we

have

seconds

identities at

own

but many of us
of where we are

sure
we

we

are

going

or

have been.

been

so

even

Most of

busy

that

the

anniversary of V-E Day

coupIe= of weeks
istineti surprise.

ago

came

Within

as

few days we shall
third post-war year.

a

ribution:

filing
full; the

are

are

emand in many

iped

out,

be

in

at

up,

some

backlogs

areas

least

in

are

of
of

being

terms

of

prices1; a measure of inustriali peace has been attained.
In comparison to the Post World
'ar I period, we stand at a

point
omewhat comparable to late 1920,
lthough. we shouldn't carry this
nalogy too far. It's been said that
time

history,, rgp^ats itself
prices go up" V
• M
.

think

rally

months

expect to proceed

general
ahead?

manner

Or

managerial

our

has

in
our

ability

or

adaptability "run out"?

we 'can

speaking,

sa^fvth'dt'
we

I will make the

(1)

We

coming near to the
filling demands at cur¬
rent prices,
including the demand
for housing.
Note that I say at
point

The

are

prices—a 10% decline in
the price of
housing, for example,
would
probably mean a consider¬
able-expansion in demand.

(2.)

A

prices

downward

will

be

revision

in

necessary

of

the

have been priced out of the

mar¬

This is especially true of new
houses in terms of current con¬

struction cost levels.

(3) Lower prices

through lowered

gen-

through

or

competition
dollar

be

for

lowered

except

on

more

the

the other.

on

only

can

costs

come

the

always

few

older

houses

will

sharply than

generalizations

are

remember

that ', the

real

estate

market, though influenced
national trends, is essentially

by

local

market.

in¬

stances by propaganda and
po¬
litical appeals. They will be forced
down through
competition for a
slice of the consumer's dollar and

they can go down and allow bus¬
iness to operate
successfully only
if costs are reduced.

—at

Lowered
least

because
peace,

to

of

a

costs

are

limited

probable

possible
degree—

industrial

higher labor productivity,

elimination

of. delays

because

of

shortages, more efficient opera¬
better trained employees,

people.

To

follow
estate

trends

in

markets

local

your

need

you

special attention to local

pay

ployment

and

incomes

em¬

and

to

solely to generalizations of the
type which I can provide in a
speech of this kind. There is a
too

to
a

some

completely

on

the

national

the

extent

thing,

and

of

us will rely
the movements

real

estate

that

there

rely

too

local economic trends.

cycle,

is

such

little

For

on

exam¬

efficiency

of

Doctrine,

whatever

great fanfare, of course,
International Bank was cre¬

the

The

creation

minds, it

New

a

wave

fi¬

supposed to juggle the bad
good and come
top. But ask any of the
global minders now about what it
risks

against the

on

supposed

do

to

and

they look

blank.
I

of

wrote

the

at

time

grant

that

the

was

pro¬

posed, that Congress' job was to
deglamorize it, to take out its
"Truman
Doctrine"
implications
and make it just another throw¬
ing away of money abroad. Con¬

their
expropriated.

government,

were

master

was

for
needy
enterprises
every¬
where in the way in which bank¬

out

Our enter¬

Deal,

of

supposed to
make possible the flow of capital

to

tion, is

a

few peo¬

that, wants

one

to

has

making

here
in Washington,
and some¬
body is going to get into trouble

unless the situation is clarified.
The

boy wonder of Minnesota,
has done nothing to do this.
A
few weeks ago he made a speech
ringing with profundity, to the
effect

10%

that

of

must

we

Th&'.

of

the

for

to rehabilitate
of

minded

the

world.

editors

and

immediately hailed

it
masterly pronouncement, one

a

as

global

aside"

"set

production

our

next

realistic

a

world

that

the

been

great political befuddlement

a

be

student, and

"Truman

badly

should

The two viewpoints are
for

make

out of its investments.

money

phasis

Doctrine"

handled, :'that
have

not

been

has

there

the

em-*-

stopping Communism in
the request for the Greek-Turkish
grant.
It should
have been a
frank

on

admission

of

responsi¬

our

bility to the world.
The

country had better watch,
shenanigans closely in the

these

next few months.

of

the

It

was

about 10

that Adolph Berle, one

years ago

Deal's wonder boys,
Congressional committee,
that we had gathered up all the
world's gold, and that the thing

told

New

a

to
do. was like
in a game of
marbles, to give the gold back, so

international

the

trade

•-V

game

could continue.

above

all, a statesmanlike "im¬
plementation"
of
the
"Truman
Doctrine."

I

out of that

always

get

a

kick

"Truman Doctrine," as

sequel

na¬

picture, rather than to trust

Truman

gress

the

study them in relation to the
tional

to

the

Greek-Turkish

the

coltlthnists

the

to

Monroe

Doc¬

trine, because I don't think Mr.
Truman, himself, knows what it
is.
Apparently it is something
which

the

thinkers

wish

What

what
does

aside"
Since

Silver Content of

he

10%
I

gate

that

we

had

Stassen

by

mean

of

According to the May 23

been

post

I

knee

have

high to

understood

num¬

ber of the Australian News Sum¬
mary,

"the

issued

silver

coinage

content

is

to

50%

to

New York

in

of

City,

Australian

be reduced
fine silver."

from
The

Summary added:

"setting

production.

our

have

said?

to

points out:

has

\

Australian Coinage

92%%

But

a

global

true.

were

ple, in the April issue of the
"Appraisal Journal" Homer Hoyt

"Announcing this today, Prime
Joseph B. Chifley said

Minister
the

reason

the

sharp increase in the price of

for

the reduction

was

trade.

"The
cause

economic
variation

a

growth

for

forces
in

different

the

which
rate

cities

of

also

difference in the timing
of the real estate
cycle
A gen¬
cause

a

produced

a

surplus and

Wenzlick
in

is,

serves

a

useful purpose

indicating broad trends, but it
nevertheless, an oversimplifi¬

cation

or

an

was

the

difference

between

The

has

1890 and in

to

Essexi&ounty, N. J., in
an

exact

time

United

'

States

during the war.
This quantity
Stassen must be returned within a period
10% of of five years from the date whea
our production. Normally we have
the United States President de¬
that much to get rid of.
clared the war emergency ended.

does

is there

the

from

Well, what does Mr.
by "setting aside"

reached in Los Angeles in 1887, in
Kansas City in 1888, in Chicago in
Nor

obtained

This increase

mean

averaging of differ¬

interval between major cycles for

war.

prosperity and depression.

Thus, while Wenzlick indi¬
cates a peak in national real estate
activity in 1888-89, it was actually

1891.

silver since the

get rid of it in foreign
was
due to action taken in the
During the Hoover Admin¬
United States to raise the price of
istration, if I heard once, I heard
silver.
A reduction in the silver
a thousand
times, that the differ¬ content
of
Australian
coinage
ence
between exporting 10%
of would enable Australia to build
our production and not
exporting
up the 11,000/000 ounces of silver
it

...

eralized national real estate cycle
like that prepared
by Mr. Roy

ences.

(4)

those

pect the same sort of developments
so long as our student and
faculty
populations continue to expand.
real

the

to

ers are

un¬

have

example, in
university towns such as Bloomington, Indiana, we can not ex¬

For

and

areas

several years
the -stricken areas

a

intense

Prices cannot
a

of

one

consumer's

in

in

which may have little bearing on
specific local situations. We must

of

ket.

we

costs.

swings

operations.

own

is

the down¬

construction

these

and

goods

con¬

the: costs of building new houses.

danger that

Many

lead

of

prices

relatively near future for con¬
tinued high levels of production
employment.

But

of arouftd 10% by &
summer.
Prefabri¬

tend to decline more

of

current

have /been' tions,




following general

observations:

hand,

urrent

very

the

same

a

The reconversion period is just
bout over; the: pipe lines of dishem

the

luck,

rela¬

a

tively
ur

are

present time

aren't

in

we

At the risk of being
foolhardy,

lengthy evening of convivial el¬
bow-bending. As he lurched quiet¬
ly up the stairs of his home he

trend

probable

business cycle and

done just that.
It was
followed, apparently, by*
other
countries,
one
ple, the dictators and their co¬ grants to
horts, were lifted by these "ex¬ after another, until it ran into
the billions. Now, Secretary Mar¬
ploitations."
shall and the State Department
Now, the proposition of the
are saying no more
appropriations
Leftists is that the living stand¬
of this kind will be sought in the
ards of all the inhabitants must
near future.
They've got to wait
be lifted, that there be no "ex¬
to see what the situation is.
J
ploitation," that we simply give
The
the money, that we must not be
global minded boys are
an
"imperialist"
nation.
As
I making no pretense of their dis¬
They
are .sayingunderstand it, an imperialist na¬ appointment.

now

decline

trends*

that is.

ing standards of only

cases

believe that

cated houses will

But

Now—can

of

properties

beginning in the near
approximating over¬

from this

ward

still—we've

and

I

gradual

a

deductions

situation.

pros¬

Many of us may be like Mr.
Dolan who returned home after a

lost

all

year

our

high level of

permanently
perity.

such costs,

have failed, and we all feel
uncertain about the international

con¬

while

corner

we

expect

future

wages

depression is just

a

can

nesses

But

such

some

there,

struction costs.

busi¬

new

still

real

enough

The point was made that the liv¬

ahead.

of course.
estate prices are
being influenced chiefly by

have ..encountered
some

and

most

groups, wage increases have not
benefited all workers, many vet¬
erans
have
been treated
rather

troubles,

are

here

groups in our communities
have suffered.
Rapid price ad¬
vances have hurt the while collar

shabbily

months

those

our,'flew Deal

/

There

that

some

productivity;1 and

forecasters

us

insist that

I

without

maladjustment.

the

of

indignation
was
aroused
about
what they were
doing, and to the
tune of high glee on the
part of

of panic prices with
premiums
for
immediate
occupancy
is
just
about
over.

large

reconversion

our

on.

vinced

e

major part of

great

We could

with

a

in

not

their

under

period

for

national

the

to

been doing such as
this, in Latin America, for ex¬
ample, for a long time.
Then

specific reference to

pretty lucky in these Post World

received

attention

ated.

prisers

estate, prices are likely to con¬
form pretty closely to construc¬

being

of

of the general

nancial

questionably lift the living stand¬

real

evil, in the superlative degree of

example, it is one thing for
enterprisers to go out

resources

Estate Trends

more

the real

With

ment, to make money. In making
money they
would develop the

likely

are

in

Washington Ahead of the News

govern¬

defla¬

business than

on

importance

into the
undeveloped areas of the
world
on
their
own
initiative,
with the support of their

government decisions.

few years

next

danger that

a

there is also the danger that many
businessmen are paying too much

such

of

is

interested

us

estate business will overstress the

American

reducing

debt—a

of

types

and Individual Firms

there

as

those of

category.

sufficiently high levels to bal¬
ance this deflationary
process. In
other words, economic conditions

Com¬

effect

reporter.
Frequently,
I think Mr. Truman is in the
same

at

Central

Trust

are

specialized

or

Cycle

Just

the

inquisitive

reduction. Business expansion and
investment will have to proceed

Company,

Craig

We

government

vary¬

(Continued from first page)

develop¬

our

tionary
process—and
it
seems
likely that we shall continue this

Company, Winston-Salem, N. C.;
Towner
Phelan, Vice-President,
Union

From

domestically is the
handling our public

of

The

business

general

major

no

rent trends. Both of these assump¬
tions seem reasonable.
Of major

importance

by
the

conditions,

domestic gov¬
ernment policies will follow cur¬

Davis,

overlook

never

affected

are

must

we

international

ments and that

Trust

Louis

however,

highly

between
industrial,
educational, govern¬

...

importance of local forces in the
real estate market. While all cities

we can

that there will be

assume

Allan

St.

must

period competition will be keener
and profit margins will be lower.
(6) To predict continuance of

Vice-President, of the Northern
Trust Company, of Chicago, 111.,

average

it

Division

mental

respectively of 20, 16, 18,
In New York,

years.

degrees

commercial,

respectively of 21, 16, 20, 13,
9 years."

We

without too

clashing"

trends may be felt in

15 and

and

soon

have
continuance of prosperity for at
least several years.
During that

Trust Informa¬

on

are

a

Company, Plainfield, N. J.;
Herrick, Advertising Manager,
Security - First
National
Bank, Los Angeles, Calif.; Wil¬
liam H. Neal, Senior Vice-Presi¬
dent, Wachovia Bank and Trust

coun¬

Only 2.8% of the 144,081
reported represent trusts

€00

and

of

conducted

was

Trust

trust

the

They represent reports from
large cross section of the active

States.

the

occur

take place gradually
much "gear

Vice-President, of the Plainfield

try.

trusts

survey

costs

Chicago,

9

communities.

35

vals

and

in

the chart of the Lawyer's Title
Corporation shows major peaks in
realty values in 1836, 1857, 1873,
1893, 1906, 1921 and 1930 or inter¬

(5) If downward adjustments of
prices

group account for 5.88% of
trusts covered by the report.

of

improvement

Thus

.

ing

and

productivity in this

for

.

.

intervals

industry

good.

averages
$3,260.
$10,000-$25,000 in¬

the

868

by

and

throughout

all

of

labor

prospects

group are shown to

the Committee

from

the

come

all

tion

group."

trusts/managed

in

The

The results of the
survey cover

a

Trusts

income is $788 annually.

"'Results
of
this
survey," JVLr.
Woollen said, "emphasize the fact
that trust services are available to

creased

cities

(3037)

major peaks of real estate activity
were reached in
1836, 1856, 1872,
1890 and
1925, which represent

field has already been
reported by
a number
of contractors and the

income

annual

all

by

are likely
chiefly from the increased
efficiency of buildmg labor.
In¬

be but 3.97% of the total and their

an

average income of $370 annually.
For 73.5 % of all trusts the
income
is less than $3,000 each and the
average

of

Company, Indianapolis, Ind., show that 54%

trusts administered
by banks and<^
trust
companies
of the
United

States have

President

and

planning

relative cost reductions

May 20 by Evans

on

CHRONICLE

to come

in the United
States, according to a survey of the annual income from
trusts completed by the Trust Division
of the American Bankers

Association.

realistic

more

management.
In
tne
construction

of trust services

users

& FINANCIAL

how
for

question

other
those
not

now,

nations

exports.

commit

of course, is

are

to

Mr.

himself

pay

us

Stassen
on

The question is controversial.

this.

He

added

nothing to it. Are we
give them away, through gov¬

ernment

g r a n t

doesn't say.

^

abroad?

He

Yet he "implements"

Annual

production of silver in
was
approximately 5%

Australia
of

the

world's

output,

country ranked fifth
producers."
,

The

.

Summary

on

but

t

the

4

th^.jUs.t of-^,
^. ,v„

from \yhich we?

i\

quote, is issued by the Australian^dj
News and Information Bureau albb
636 Fifth Avenue.

.

.

J

.

!

W

'a*

,

10

Moody's computed bond prices
given in the following table:

1217006

bond yield averages are

and

PRICES

MOODY'S

EOND

(Based

1947

Average Yields)

on

u. S.

Avge.

Dally
Averages

Govt.

Corpo-

Bonds

rate*

Aaa

June

121.70

117.00

122.50

3

12718
2

121.67

__

117.00

122.50

31

P. U.

R. R.

Indus.

A

Baa

116.43

109.42

111.62

118.60

120.84

116.41

109.42

111.81

118.60

120.84

Aa

120.43
120.43

Market Closed

29

121.67

122.50

117.00

116.41

120.43

118.60

111.62

109.42

120.84

121.67

117.00

122.50

120.43

116.41

109.42

111.62

118.60

120.84

27

121.64

117.00

122.50

120.22

116.22

109.60

111.62

118.60

120.84

26

121.64

117.00

122.50

28

24

116.22

109.60

111.62

118.80

120.84

122.50

120.22

116.41

109.60

111.62

118.80

120.84

117.00

121.64

120.22

117.00

a

23

122.50

120.22

116.22

109.60

111.62

118.60

116.41

109.60

111.81

118.60

121.04

120.84

22

121.67

117.00

122.50

120.43

21

121.64

117.00

122.50

120.22

116.41

109.60

111.81

118.60

120.84

122.50

120.43

116.41"

109.79

111.81

118.60

121.04

121.64

117.20

121.64

117.00

122.29

120.43

116.41

109.79

111.81

118.60

120.84

a

117.20

122.50

120.43

116.41

109.97

112.00

118.60

121.04

121.64

117.20

122.50

120.43

116.41

109.97

112.00

118.80

121.04

15

121.64

117.20

122.50

120.43

116.61

110.15

112.19

118.80

production of soft coal in

total

121.64

117.20

122.50

120.43

116.61

110.15

112.19

118.80

121.04

121.64

117.40

122.50

120.43

116.80

110,15

112.37

118.80

13

121.04

117.40

122.50

120.43

116.80

110.34

112.37

118.80

121.04

117.40

122.50

120.43

116.80

110.34

112.37

118.80

121.04

121.64

117.40

122.50

120.43

116.80

110.34

112.37

118.80

121.25

8

121.61

117.40

122.50

120.43

116.80

110.34

112.56

118.80

121.04

Total,

including mine fuel..

121.61

117.40

122.50

120.43

116.80

110.34

112.56

118.80

121.04

Daily

average

2425
6

121.61

117.40

122.50

120.43

117.00

110.52

112.56

118.80

121,25

5

121.61

117.40

122.50

120.43

117.00

110.34

112.56

118.80

121.04

3

a

117.40

122.50

120.43

117.00

110.34

112.56

118.80

2

121.64

117.40

122.50

120.43

117.00

110.34

112.56

118.80

121.04

1

121.61

117.40

122.50

120.43

117.00

110.34

Apr. 25

121.74

117.40

122.50

120.63

117.00

110.34

112.56

118.80

117.40

122.50

120.43

116.80

110.15

112.37

118.80

121.04

PRODUCTION

ESTIMATED

117.40

122.50

120.43

116.80

110.34

112.37

118.80

121.25

122.50

120.43

116.80

110.15

112.56

118.60

121.04

14

117.40

122.50

120.43

117.20

110.34

'112.75

118.60

121.04

117.20

122.29

120.22

117.00

110.15

112.56

118.40

121.04

112.75

118.20

120.84

122.27

117.20

120.02

122.09

117.00

110.34

117.20

122.20

122.09

120.02

117.00

110.52

112.75

118.40

120.84

117.20

122.17

7

28__

122.09

120.02

117.00

110.52

112.75

118.40

120.84

122.14

117.40

122.09

120.22

111.20

110.70

112.93

118.40

122.20

117.40

122.09

120.02

117.20

110.88

113.12

118.40

122.20

117.60

122.09

120.22

117.20

111.07

113.31

118.60

31

122.08

117.40

121.88

120.22

117.40

110.88

113.31

118.80

117.60

121.88

120.43

117.40

110.88

113.31

118.80

120.63

122.24

117.40

120.22

117.40

110.70

113.12

118.60

120.84

10

122.17

117.20

121.67

119.82

117.20

110.52

113.12

118.40

122.14

116.80

121.25

119.61

116.80

110.15

112.75

118.00

1947-L__

122.39

117.60

122.50

120.63

117.40

111.07

113.31

118.80

121.25

121.61

116.80

121.04

119.61

116.22

109.42

111.62

1947

3,

2 Years

June

23,841,000
22,649,000

138,700

10,600

2,485,000

1,249,100

1,544,100

washery

117.80

2,

118.80

123.13

121.46

Ago

.

1945_

122.23

115.43

120.63

118.40

•

,

112.56

116.22

119.00

STATES,

BY

weekly estimates are based on railroad carloadings and river ship¬
subject to revision on receipt of monthly tonnage reports from district
State sources or of final annual returns from the operators.)
and

and

are

MOODY'S

(Based

Daily

115.43

107.44

112.37

114.85

BOND

YIELD

Individual

on

AVERAGES

Aa
'*

"
A

P. U.

Indus.

3

1.57

2.80

2.53

2.63

2.83

3.20

•3;08

2.72

2.61

2

1.57

2.80

2.53

2.63

2.83

3.20

3.07

2.72

2;61

20,000

13,000

84,000

123,000

1,000

1,000

1,000

1,400,000

1,260,000

582,000

442,000

•

'

Market Closed

(lignite)

Dakota

Oklahoma

,

1.57

2.80

2.53

2.63

2.83

3.20

3.08-

2.72

2 61

Pennsylvania

28

1.57

2.80

2.53

2.63

2.83

3.20

3.08

2.72

2.61

Tennessee

1.57

2.53

2.64

2.84

3.19

3.08

2.72

1.57

2.80

2.53

2.64

2.84

3.19

3.08

2.71

2.53

2.64

2.83

3.19

3.08

2.71

2.61

f."

*

81,000

29,000

29,000

33,000

■

39,000
596,000

845,000

32,000

49,000
1

:■

3,136,000

1,207,000

147,000

38,000

1,000

1,000

136,000

109.000
331,000

416,000

,390,000

1.57

2.50

2.53

2.64

2.84

3.19

3.08

2.72

2.61

1.57

2.80

2.53

2.63

2.83

3.19

3.07

2.72

2.60

{Other Western States

1.57

2.80

2.53

2.64

2.83

3.19

3.07

2.72

2.61

1.57

2.79

2.53

2.63

2.83

3.18

3.07

2.72

2.62

19

1.57

2.80

2.54

2.63

2.83

3.18

3.07

2.72

2.61

17—

a

2.79

2.53

2.63

2.83

3.17

3.06

2.72

2.60

16

1.57

2.79

2.53

2.63

2.83

3.17

3.06

2.71

2.60

15

1.57

2.79

2.53

2.63

2.82

3.16

3.05

2.71

1.57

2.79

2.53

2.63

2.82

3.16

3.05

2.71

1.57

2.78

2.53

2.63

2.81

3.16

3.04

2.71

2.60

12

1.57

2.78

2.53

2.63

2.81

3.15

3.04

2.71

2.60

10

a

2.78

2.53

2.63

2.81

3.15

3.04

2.71

2.60

1.57

2.78

2.53

2.63

2.81

3.15

3.04

2.71

2.59

1.57

2.78

2.53

2.63

2.81

3.15

3.03

2.71

2.60

cent

large

increasing the portion of the aver¬
age

income dollar which comes
premium payments," Holgar
Johnson, Institute President,

from

J.

commented.
miums

1,123,000

1,250,000

130,000

157,000

this dollar,

*

'

the

with

combined

years,

continuously falling rate of in¬
vestment earnings, has resulted in

5,000

'.t

.' V

•

j

increase
in: the
ownership of life insurance in re¬
"The

1941,

"In

the

pre¬

cents

76.3

contributed

of

while in 1946, they ac¬

counted for 78.5 cents. In contrast

2.60

13

.

1,846,000

2.60

14

interest,
cent."
v

a

15,000

1,000

to stocky

represented

stock

a

4/10 of

2,597,000

'■•

21.

is

1,133,000
130,000

(West Virginia—Northern

were

expenses

cents and dividends

1.8

2,578,000

.

Wyoming

20—

and

holders, going to shareholders of
those companies in which there

17,000

(West Virginia—Southern

22

9

to
Total bituminous and

m

2.78

2.53

2.63

2.81

3.15

3.03

2.71

2.60

1.57

2.78

2.53

2.63

2.80

3.14

3.03

2.71

2.59

lignite

Panhandle

District

and

*Less than

Grant,

1,000

Mineral and Tucker

Savings and Mortgage Convention of AIB
Gonference in Augusta In Detroit June 2-6
At

recent

a

utive

meeting, the Exec¬
of the Savings

Committee

Division of the American Bankers

2.53

2.63

2.80

3.15

3.03

2.71

2.60

2.63

2.80

3.15

3.03

2.71

2.60

1.57

2.78

2.53

2.63

2.80

3.15

3.03

2.71

2.60

Association accepted an invitation
from tne Georgia Bankers Asso¬

1.57

2.78

2.53

2.63

2.80

3.15

3.03

2.71

2.60

ciation and the banks of Augusta,

Apr. 25

1.56

2.78

2.53

2.62

2.80

3.15

3.03

2.71

2.59

18

1.56

2.78

2.53

2.63

2.81

3.16

3.04

2.71

2.60

2.78

2.53

2.63

2.81

3.15

3.04

2.71

2.59

2.78

2.53

2.63

2.81

3.16

3.03

2.72

2.60

1.53

2.78

2.53

2.63

2.79

3.15

3.02

2.72

1.53

2.78

2.54

2.64

2.80

3.15

3.02

2.73

1.53

2.79

2.54

2.64

2.80

3.16

3.03

2.73

1.56

2.79

2.55

2.65

2.80

3,15

3.02

1.57

2.79

2.55

2.65

2.80

3.14

3.02

2.73

2.61

28

1.56

2.79

2.55

2.65

2.80

3.14

3.02

2.73

2.61

21

1.57

.2.78

2.55

2.64

2.79

■3.13

3.01

2.73

2.60

14

1.56

2.78

2.55

2.65

2.79

3.12

3.00

2.73

2.61

1.56

2.77

2.55

2.64

2.79

3.11

2.99

2.72

2.61

31

1.57

2.78

2.56

2.64

2.78

3.12

2.99

2.71

2.62

24

1.55

2.77

2.56

2.63

2.78

3.12

2.99

2.71

17_

1.56

2.78

2.56

2.64

2.78

3.13

3.00

2.72

2.61

10

1.57

2.79

2.57

2.66

2.79

3.14

3.00

2.73

2.63

1.57

2.81

2.59

2.67

2.81

3.16

3.02

2.75

2.65

1.57

2.81

2.60

2.67

2.84

3.20

3.08

2.76

Ga., to hold a Savings and Mort¬
gage Conference in Augusta, No¬
vember 20-21.

Sherman

Drawdy,

President of the Georgia Railroad
Bank and Trust Go., of Augusta

The

program

—

21

14

High

2.74

2.60
-

2.60

2.60
2.61

1947

3,

2 Years

2,
a

gia

Bankers

Chairman

Association, will be
of

Committee.

the

Mr.

Vice-President

of

Conference

Dawdy
the

is

also

ABA

for

area

will

Georgia. The conference
include

-

1.53

2.77

2.53

2.62

2.65

2.78

3.11

2 99

2.71

2.59

273

3.03

2.84

2.70

2.60

Georgia,
Florida,
Ala¬
bama, North and South Carolina,
and

Tennessee.

also

to

uses

which

Benefit

changes.

some

the

in¬

put, there were
pay¬

ments, though larger in aggregate,
represented
a
slightly
smaller

vention of the American Institute

Banking, educational section of
the
American Bankers Associa¬

of

tion, which will be held in De¬
troit, Mich.„ from June 2 to 6.
George J. Greenwood, Jr., Na¬
tional President of the Institute,
and Vice-President of the Bank
of California N. A., San Francis¬

portion
1946,

as

of the average dollar in
compared with 1941. The f
to

additions

funds

reserve

werej

greater both in aggregate and in
percentage of the whole, reflect¬
ing the larger amount of insur-|
ance and greater age of many pol-j
icies in force. Expenses of opera-!j

tion, reflecting rising costs and
payrolls and increased business,!
Calif. indicated that conven¬ required more of the average lifej
tion activity on a scale not pos¬ insurance,
dollar
in
1946.
Lastj]
sible^ since the beginning of the year's figure was 15.5 cents, com¬
war would be resumed by the In¬
pared with 13.2 in 1945 and 14.0-1
stitute at its 45th

annual meeting.

in 1941.

-

,

will be six de¬
"These average income
dollar|
partmental conferences and; seven
Institute conferences besides the figures do not, of course, reflect,
the actual experience of anyone*
regular
business
sessions.* The
National Convention Debate will policy or policyholder. They :arej

On

the

program

1.47

1946.

2.88

3.31

3.04

2.91

2.69

2.58

2.50

Ago

Market

28—

2.88

2.62

2.70

closed.

*These prices are computed fronuaverage

yields

on

the basis of

one

"typical" bond

(3%%

coupon, maturing in 25 years) and do not purport to show either the average
level or the average movement of actual price quotations.
They merely serve to
Illustrate in a more comprehensive way the relative levels and the relative movement

list

used

Issue of the "Chronicle"

in

on



1

compiling the .averages was
1321.

page

■-&'

Ai

"

a

given in

the Sept. 5, 1946

396.9
395.4

Holiday

Friday, May 30

tinued.

2
3

__

;

Contest

Educational

will

prizes

be

con¬

Because of the size of

it

which

convention,

393.8

would bring

394.9
395.1

31—

Monday, June
Tuesday, June

bers

was

the

stated,

delegates and mem¬

representing

350

chapters

Year

make

paid

from

study groups from all parts of from

the

United

1946

1947

High, Dec.

24,

2~S:

380.6
264.7

Jan.

High, March 26—
Low, Jan. 20-

431.8
371.5

States

Book-Cadillac
Hotels

will

be

the convention.

to

and

,

Detroit, the The
the

Statler

headquarters

the

for
a

to

by

reserves

the

reflect

dollar."

pay¬

largely

previously
and not

gear's

income.

income dollar figure^

give a; long, range,

for happens

the

which life

purpose

current

average

life

whole'land

operates." Behefit

built up for the

and

20__o.

as

ments in any one year are

396.7
284.1

May

processes

insurance

398.6

May

ago,

ago,

ago

figures

attempt

no

detailed

3

weeks

of

averages

insurance business

Low,

Two

Month

Of? yield averages, the latter being the true picture of the bond market.
NOTE—The

L.

29

Saturday, May
1.64

1945.

Endowment

and the Na¬

Speaking

for the A. P. Giannini

394.3

May
May

Public

tional

Tuesday, May 27
Thursday,

2,71

|

co,.

be resumed this year,

Moody's Daily
Commodity Index
Wednesday,

1 Year Ago

June

and former President of the Geor¬

the

dollar was

-

1947

June

said:

come

for the 1947 con¬

2.62

Mar. 28;

dropped from

"In

2.53

1.54

other income
23.7 cents in 1941
21.5 cents last year." He fur¬
and

earnings

ther

2.78

1.53

this, the portion of the income
coming from investment

dollar

to

2.78

3

C. & G.; and
including the
glncludes Arizona and

Counties,

tons.

1.57

11-

13,155,000

12,970,000

a

2—

8,955,000

"(Includes operations on the N. & W.; C. & O.; Virginian; K. & M.; B.
the B. & O. in Kanawha, Mason and Clay Counties. - (Rest of State,

Oregon.

1.57

5

'

2,000

64,000

27,000
27,000

1,000

Washington

23

Low

52,000

147,000

2.61

2.80

•

138,000

2.61

a

26

2.80

**<■

*

3,150,000

(bituminous)..—

(bituminous and lignite).—

Texas

27

43,000

47,000

___

29;.

Jan.

*

67,000

;

<

407,000

.1,000

—_—

90,000
758,000
198,000

110,000

1,321,000

.

44,000

Mexico
and South

■

.

»

394,000

(bituminous and lignite)

Montana

27,000

39,000

37,000

107,000

1,214,000

—__

Michigan
New

6,000

*

84,000

—

—

812,000

3D

Agency

expenses.

higher than in the previous year,
due to an unusually large increase*
in new business. Taxes required

-—

North

Market Closed

31

office' and

home

for

cents

5.8

miscellaneous

6,000

Missouri

and

Kansas

R.'R.

dollar, 9.7 cents going for agency
and
expenses
and

commissions

commissions

1,419,000
564,000

:—

Iowa

Corporate by Groups*

Baa

guaranteeing

funds

their future benefits.

1946

-

18,000

Colorado

Corpo-

Corporate by Earnings*

to

additions

262,000

Kentucky—Western
Maryland

Aaa

to

6,000

Kentucky—Eastern

rate*

to

beneficiaries or

416,000

119.20

Closing Prices)

May 18,

May 10,

cents

82.3

combined

of payments

These

funds.

plus

policyholders and

1947

Georgia and North Carolina

.

119.00

cents; and 1.5 cents were used
special reserves and sur¬

420,000

1947

State—

Avge.

Bonds

Averages
June,

Week Ended

May 17,

required

claims

future

meet

40.3

to add to

15.5

TONS

current

(The
ments

Indiana

Govt.

Feb.

NET

IN

addi¬

income dollar;

policy reserves established

"Expenses of operation required
cents of the average income

PRODUCTION OP BITUMINOUS COAL AND LIGNITE,

ESTIMATED WEEKLY

120.02

121.04

1937

1946

authorized
coal shipped by truck from
to revision. §Revised. fiEstimated from

coal and

dredge

and

policyholders and bene¬
40.5 cents of

average

make

Arkansas

124.02

1946_

U. S.

May

24,112,000

Alaska

1947

*

25,078,000

21,494,000

120.02

121.88

1 Year Ago

June

22,355,000

120.43

3

LOW

1,014,000
675,000

operations.
(Excludes colliery fuel.
(Subject
weekly carloadings reported by 10 railroads.

120.63

122.39

1,074,000
1,033,000

120.84

24

May 25,

1947

Beehive Coke—

120.84

7

the

ments to

to

May 29,

May 24,

121.04

14

Interest earn¬

and other income made up
remaining 21.5 cents. Pay¬

ings

tions to

May 25,
1946

flUnited States total.
♦Includes

life insurance

the

COKE

AND

Calendar Year to Date

•

138,300

•(Commercial produc,

122.27

ANTHRACITE

PENNSYLVANIA

1,084,000
1,042,000

♦Total, incl. coll. fuel

117.40

122.24

21_.

182,4)6,000
- 1,482,000

§May 17,
1947

1947

in¬

dollar of the

come

ficiaries represented

OP

(May 24,
Perm. Anthracite--

122.02

Mar. 28

2,061,000

(In Net Tons)
•

3 22.*17

3

7,672,000 251,652,000

1,279,000

Week Ended

121.25

121.80

High

2,162,000

current adjustment.

to

♦Subject

121.04

112.56

Jan.

12,970,000

2,137,000

121.04

118.80

1947

12,820,000

1946

1947

1946

1947

May,25,

♦May 24,

May 25,

May 17,

May 24,
Bituminous coal & lignite—

payments accounted

cents of the average

78.5

for

companies in 1946.

Jan. 1 to date

Week Ended-

121.67
a

'7

Feb.

PRODUCTION OP BITUMINOUS COAL AND LIGNITE
(InNet Tons))

UNITED STATES

ESTIMATED

"Premium

week of 1946.

127,700 tons more than for the corresponding

was

9-

12

High in 1946

in premiums from policyholders,
estimated by the Bureau of Mines, was 1,084,000 tons, an
of 10,000 tons, or 0.9%, over the preceding week.
When according to the Institute of Life
Insurance which on May 28 stated
compared with the production in the corresponding week of 1946
that "last year's benefit payments
there was an increase of 70,000 tons, or 6.9%. The calendar year to
and
additions
to
policy funds
date shows a decrease of 10.9% when compared with the correspond¬
reached a new high at an es¬
ing period of last year.
timated
$5,750,000,000, which is
The Bureau also reported that the estimated production of bee¬
40%
greater than the pre-war
hive coke in the United States showed a decrease of 400 tons when 1941
figure of about $4,000,000,compared with the output for the week ended May 17, 1947; and 000." The advices added:

121.04

14

19

;

the week ended May 24,
1947, as estimated by the United States Bureau of Mines, was 12,820,American life insurance com¬
000 net tons, a decrease of 150,000 tons, or 1.2%, from the preceding
week." Output in the corresponding week of 1946 amounted to 7- panies last year paid or credited
to policyholders and beneficiaries,
672,000 tons. In the current calendar year to May 24 soft coal pro¬
duction totaled 251,652,000 net tons, an increase of 38.0% over the through direct benefits or addi¬
tions to funds guaranteeing poli¬
182,416,000 tons produced in the corresponding period last year.
,
Output of Pennsylvania anthracite for the week ended May 24, cies, 5% more than they received
The

1947, as
increase

Market Closed

30—_—

May

Corporate by Groups*

Corporate by Earnings*

Paid.

Policy Praniins

Weekly Coal and Coke Production Statistics

Moody's Bond Prices and Bond Yield Averages

194#

Thursday, June 5,

CHRONICLE

THE COMMERCIAL & FINANCIAL

(3038)

the

to
-

-

view of what

life

insurance

Volume

165

Number

THE COMMERCIAL 8c FINANCIAL CHRONICLE

4600

remained

as

beginning June 2, 1947,

compared with 95.4%

week

one

90.6% one month ago and
55.2% one year ago. This repre¬
sents an increase of 1.6
points or
1.7% from the preceding week.
ago,

The

week's

operating rate is
equivalent to
1,697,400 tons
of
steel ingots and
castings compared
to 1,669,400 tons one week
ago,
1,585,400 tons one month ago and
972,800 tons one year ago.
Electric

Production

Higher

The Edison Electric Institute

this

failing de¬
clined from the previous week's
41, but were four times as numer¬
ous as in the corresponding week
group

of

Only

salers

failing totaled 10, showing

increase

an

week

forts that the output of electricity

In

service

the

week

4,662,858,000 kwh. in

ended

May 24, 1947,
from
4,615,983,000 kwh. in the
preceding week. Output for the
Week

ended

May

24,

above

that

for

18.3%

1947,
the

sponding weekly period

was

corre¬

one

year

from

well

as

increased

to

this

half as many con¬
cerns failed in retailing last week,
totaling 19 against 37, but they
outnumbered the 5 reported for
the same week a year ago. Whole¬

—

re-

ranked

trade

number of failures

second in

week.

concerns

Retail

1946.

The

year.

continued

at

Consoldiated Edison Co. of New
York reports system output of
191,500,000
kwh.
in
the
week
,

as

failures as
this week. At

many

failing

concerns

in

this

area

declined from the 29 recorded

other

regions

had

than

increase of 10.5%. Local distribu¬

the

tion

Most

of

electricity

183,000,000

kwh.

amounted

to

with

compared

week's

Railroad Freight Loadings Rise

—Car

loadings of

revenue

freight

for the week ended
May 24, 1947,
totaled 890,605 cars, the Associa¬
tion of American Railroads an¬
nounced.

2,397

This

was

increase of

an

cars, or 0.3%

above the pre¬

ceding week, and 319,132 cars, or
55.8%
above
the
corresponding
week
for
1946,
when
loadings
affected by labor difficulties.
Compared with the similar period
1945, an increase of 7,852 cars,
or 0.9%, is shown.
were

of

Paper

Output

and

Paperboard

Production Off—Paper production
in the United States for the week
Sended May 24, was 105.1% of mill

capacity,

against 105.3% in the
preceding week and 99.2% in the

•ilike

1946

week, according to the
American Paper & Pulp Asocia-

»

tion.

This

does

not

include

mills

producing newsprint exclusively.
Paperboard output for the same
Week,
102%

93%
a

101%

was

in

for

year

with

compared

the preceding week and
the corresponding week

ago.

<

paper as

hand at the mills continues at

on

high level the Association
ports.

a

re¬

Production of paper and paperboard in the U. S. in the first

\

four

months

annual

of

of

rate

1947

21,300,000

Production in 1946 reached
ord

at

was

19,157,208 tons. This

an

tons.
a

was

rec¬

10%

greater than 1945's output and 7%
ahead

of

vious

the

1941

level, the

pre¬

high.

Business Failures

Still

High

—

Although

in

the

ending

May

to be four times

29

as

con¬

numer¬

in the comparable week of
Dun & Bradstreet, Inc., re¬

'1946.

ports 72 concerns failing against
*102 last week and 18 a year ago.
There

were

times

seven

as

large failures this week

many

there

small

were

as

failures.

Sixtythree failures occurred involving
-

^abilities

<?f

$5,000

or

whereas only 9 failures

more

were

re¬

ported
with
losses
under
that
amouht. Both size groups showed
a
decline from last week's level,
but

the, sharpest decline was in
large failures which totalled 89
jSl
wehk
ago.
Likewise, the big
failures

were

responsible for most

of; the increase from last year's
.level, with concerns failing up
from

11

in

Week

to

63

ended.
were

On

1946's
in

the

only 2

more

this week than

a

Manufacturing
Of

the

the

other

'

week's

comparable
week

just

hand, there

small

year

failures

ago.

accounted for 31

total

Atlantic

concerns

12.

riod,

failures

decline

for

the

week

with

cations that the peak of the

with

better

a

small

Canadian

failures

were

reported against 11 'in the preced¬
ing week and 3 in the correspond¬

ing week of 1946.
April New Business Incorpora¬
tions

Under

New

Last

Year's

Level—

business

incorporations
throughout the country totaled
9,802 in the month of April, ac¬
cording to Dun and Bradstreet,
Inc., representing a drop of 4.3%
from the 10,247 recorded in March.
The
total
was
more
than
one-

fifth,
469

21.4%, less than the 12,April last year. Each

or

for

month

during

stock

new

the

current

year

formations

company

have been fewer than in the

cor¬

responding month of the preced¬
ing year, with the decline grow¬
ing
progressively
larger
each

liquidation

by

Rise

Price

in

12

Index

Shows

First

staple for UNRRA account.
Also tending to lend support was
the high rate
of domestic con¬
bales

were

ding

on

low

of

$5.95

The

with

compares

the

past

The

rise

a

was

recorded

current

$4.20

responding date

on

year

a

figure

the

cor¬

ago.

influenced

by

higher quotations for wheat, corn,
oats, barley, flour, beef, hams,
lard, butter, coffee, cocoa, pota¬
toes, steers and hogs. Only cheese,
raisins and currants showed

declines for the

per

general

the

week.
sum

pound

of

The index

total

31

of

foods

the

in

use.

Wholesale

Commodity

Price Index Fractionally Higher—
After the irregular movement of
the
previous
week,- the
daily
wholesale commodity price index,
compiled by Dun & Bradstreet,

Inc., trended upward during most
of the past week but a
sharp reac¬
tion at the close
brought the May
27 figure to
254.56, only fraction¬
ally above the 254.37 recorded a
week earlier.

At this time

Rubber
uward

year

ago it stood at 194.58.

Activity in grain markets in¬
creased
during the past week.
Prices
developed additional
strength, aided by the issuance of
supplementary export allocations
and fears of rust

damage in wheat

producing

Corn led the ad¬

areas.

under heavy
buying against
export sales, coupled with a fall¬
ing off in country offerings.
Ex¬
port sales of flour to European
vance

countries
but

increased
domestic

during
flour

futures

the

buying

the

toward

slightly

end

of

the

in

the

spot market brought

tations
18

to

for

smoked

cents

ribbed

pound,

per

about three cents from

Factory

iriterest

a

quo¬

with

the

in

week

previous

the

corresponding
ago. Both sellers and

year

hesitant

about

com¬

mitments beyond the

third quar¬
ter due to price uncertainties.

Department

store

sales

on

a

country-wide, basis, as taken from
the

Federal

dex for

1947,

Reserve

the

week

Board's

ended

increased 13%
period of last

same

in¬

May 24,

above

the

This
compared with an increase of 11%
in the preceding week. For the
four

weeks

sales

year.

ended

May 24, 1947,
by 12% and for
to date by 11%.

increased

the year

Seasonal

and

Decoration

Day

and

raised
in

goods

brass

prices

costs

foreign

lines

to

caused
copper.

such

as

fabricators

equal

increases

by purchases of
Price increases on

finished metal lines of old estab¬

sheets

re¬

week.

the

As

food

lines, the price move¬
was spotty and lower.
According to the Federal Re¬
serve
Board's index, department
store sales in New York City for
the weekly period to May 24,
1947,
increased

11%

last

above

the

same

This compared
increase of 9% in the pre¬
ceding week. For the four weeks
year.

an

ended

May 24, 1947, sales

rose

8%

and for the year to date increased

10%.

Plantz Steads Savs.
Bank life Council
The appointment of Clarence B.
Plantz

President

as

of

Savings

Bank Life Insurance Fund of New

York

announced

was

on
May 13
Chairman of

by Harris A. Dunn,
the

Board of Trustees of

Bank

Life

Insurance

Savings

Fund

and

President of the North River Sav¬

ings Bank.
Mr. Plantz, who was
formerly Vice-President and
Treasurer of the New York

ings Bank, has been
Vice-President of the

Sav¬

Executive
Fund

for

the past year.
Other new officers of the Fund
announced

by

Mr.

Dunn

.

were:

Carl F.

Vietor, Jr., Vice-President
Actuary, William P. Hughes,
Secretary, and Harold Daus, As¬

and

sistant Treasurer.

Mr. Vietor has

been

Actuary of the Fund since
formation, Mr. Hughes was

its

until

recently Director of Statis¬
tics and Research for the Institute
of

Life

Insurance

and

Mr.

Daus

formerly Manager of the Life
Department
of
the
Bushwick Savings Bank.

was

Insurance

drop^of

a

week ago.

light

was

and

were

of whole¬

the

were

copper

turned

week, but continued slow demand

National Fertilizer Association Wholesale

and

dealers generally were hesitant in

quoting prices beyond July de¬
livery. The price of foreign silver
in

New

ounce

York

dropped two cents
to 70% cents, reflecting

accumulation

an

of

silver

stocks

result of

a

continued light in¬
demand.

Retail

and

Moderately

rainy
the

Wholesale

Higher

weather

usual

Trade

Although

—

interferred

with

increase

seasonal

of retail sales last week

ume

in

buying, the dollar vol¬

consumer

con¬

tinued

moderately above that of a
according to Dun &
Bradstreet, Inc., in its weekly re¬
ago,

view
lines
be

of

trade.

of

higher

weeks.

high

Stocks

goods
than

prices

of

many

reported to
those in recent

were

Continued

resistance

noted

was

in

to

many

sections of the

country especially
and
small
electrical appliances.
j

for

food,

volume
in

furniture,

was

of

a

comparison

The

slight drop in the

food

abundant

sold

with

a

last

tion's report continued

During

of

ago.

fresh

fruits and vegetables were

bought
large quantities. A decrease in
meat purchases reflected the re¬

the

as

follows:

of the composite groups in the index
advanced while two declined; the other three remained at the level
six

week

of the

preceding week. Lower prices were quoted for dried prunes,
fowl, and soybean oil, but the higher prices for flour, corn
meal, potatoes, ham, coffee, lard, and some meats caused the foods
index to advance.
The declines registered for livestock and eggs

cocoa,

were

more

result

that

than offset by advances for cotton and grains, with the
the farm products index advanced.
The fuels index

advanced slightly, as did the textiles index. The price of silver bars
fell, but the rise in the price of steel scrap was enough to cause the
metals index to advance. Higher prices for nitrogenous
tankage and

nitrogenous- sewage sludge caused the fertilizer materials index to
slightly. Higher prices for calfskins and cottonseed meal

advance

not

were

wood

enough to

offset lower prices

pulp, and feed

for hides, leather,

stuffs with the result that the

commodities index declined.
was

week

week

supplies

Commodity Price index Advances Sligislty
During the week ended May 31, 1947 the weekly wholesale
commodity price index compiled by The National Fertilizer Associa¬
tion and made public on June
2, rose to 196.5 from 195.4 in the
preceding week. A month ago the index stood at 195.6 and a year
ago at 148.0, all based on the 1935-1939 average as 100. The Associa¬

A decline in the

ruober,

miscellaneous

price of southern pine

responsible for the fall in the building materials index.

During the week 23 price series in the index advanced and 19

declined; in the preceding week 20 advanced and 36 declined; in the
second

preceding week 22 advanced and 24 declined.

in

sistance

to

usual

lack

foods

in

high
of

prices

demand

warm

for

tions

of

the

weather

was

demand
wise.

country
cool

those

suits,

was

The
more

supply

ago and demand
usual
and

of

numerous

large

white
than

25.3

1946

Cottonseed

146.8

215.9

205.9

240.3

1^7.4

279.2

Oil

212.2

215.9

Oils

2P"2
243.8

o??'?
241.1

179.4

245.6

Farm Products

Cotton

343.2

342.1

335.4

264.7

Grains

268.1

256.6

243.9

192.1

Livestock

espe¬

226.2

227.0

227.7

172-2

170.4

169.8

131.4

157.6

161.8

158.1

138.6

215.5

215.3

215.0

149.4

149.3

147.9

188.2

189.7

203.2

.1111.

17.3

Fuels

10.8

Miscellaneous

8.2

•

Commodities

-

Textiles

7.1

Metals

6.1

Building Materials

;

1.3

Chemicals

and

157.4

157.4

,3

Fertilizer

Materials

128.0

127.5

Fertilizers

134.5

134.5

134.5

.3

Farm

125.3

125.3

-125.5

196.5

195.4

195.6

167.8

127.5

.3

167.1

117.9

.

156.9

year

162.9

Drugs

127.5
f

strong. With the

Machinery

114.8
119.8

;

105.8

number of weddings

graduations

there

1947

215.6
and

shoes
a

Year
Ago
June 1,

Ago
May 3,

1947

1947

Fats

23.0

Week

May 24,

May 31,

Foods

at

this

time

of

increase

in

100.0

All

"Indexes

year,

INDEX

Preceding Month

Week

the

cially gabardine and palm beach
suits, were eagerly sought with
the volume of sales high. It be¬
came
increasingly difficult to sell
furs.

Latest

Group

Total Index

rainy, but
strong other¬

Summer

PRICE

1935-1939=100'*

sec¬

where

COMMODITY

%
Each Group
Bears to the

and

continued

Men's

in

WHOLESALE

Compiled by The National Fertilizer Association

heavy

weather.

retarded

was

WEEKLY

the

and

Buying of Summer and beachwear

a

mar¬

featured

change in the

volume

during

Durable

There

Daily

as

dollar

that of

a

buyers

noted.

year

rye,

eggs,

April,

a year ago.

by keen bid¬
print cloths for both do¬

dustrial

earlier.

during

40,100

12, South

10,000,000 yards reported booked needs
bolstered retail trade here
for foreign consumption.
Light¬ in New York last
week. Depart¬
weight
sheetings were also in ment store
volume was estimated
good demand but supplies were
as
approximating 15% over the
scarce.
Heavier
^sheetings were like week of last year.
quiet with some' price shading

movement

of

exceed

mestic and export use with about

as

months, the wholesale food
price index, compiled by Dun &
Bradstreet, Inc., advanced 1.2%
to $6.02 on May 27, from the sixmonth

averaged

day

per

kets

three

week

which

little

was

trade

week

short

the

to

primarily to the higher
price level, volume continued to

of

due to mill

by the

year ago

East 8

line

week. Due

speculative

was

9,

comparison

This

covering,
government buying of

active

and

Weeks—Reversing the

downward

sale

buying attributed tb expec¬
tations of sharp reductions in tex¬
tile prices by next Fall. Strength
in early dealings
price-fixing and

to

over-all

contraction

a

a

In

period

5

There

of the week.

and

over

corresponding week
ago. Regional estimates ex¬

9 to 13, Middle West 3 to
8, South¬
west 0 to 5, Northwest and Pacific
Coast 6 to 10.

comparatively light trading,
leading cotton markets developed

mill

10%

to

esti¬

for

heavy

was

fabrics

rayon

firmer

the week¬

as

ment

with

improvement in

influenced

was

drop

cotton, activity was confined
30-day deliveries.

land

In

was

25,

on

of

following percentages: New Eng¬

slightly. Spot sales were
large but demand from manu¬

easier trend at the close.

ended

the

ceeded those'of

firm¬

resulting

supplies

the latter part

May

retail

of

week

marked

a

ported
for
to

volume

the

to be from 6

of

a year

vanced

an

month.

that

been

reported
afloat for this country. Cocoa ad¬
not

dollar
for

mated

indi¬

were

tone

prepared for
week-end trips.

The

Spring

has

season.

supplies sold well as
Memorial

Wednesday,

The carded gray cotton cloth

last year.

Four

Summer

motorists

moderate

a

Con¬

The Memorial Day
holiday on
Friday last, caused activity in fall
openings early in the week to

prices

trade

was

heavy.

manufacturers, reports
state, averaged close to 2%.

approaching

ern
markets
continued
above
those of the comparable 1946
pe¬

there

lished

show

Day

but

finery,

end approached. Trade
in the
summer
dress

Automobile

were

against 37,500 in April

no

remained

Hog
mostly stronger. Re¬
ceipts of hogs at principal West¬
values

women's

garden tools, housecleaning items
and paint was indicative of the

lard

over a week ago.

compared with five

with

demand

gain of 21/4$J

sumption

areas

of

tinued interest in lawn furniture,

lard

Refined

net

a

in

sales

jewelry.
Requests fof durable goods gen¬
erally were numerous. Furniture

new

prolonged

trict, the East South Central, did
not have any failures this week as

failures.' In week




centered in

England and South
Regions. Only one dis¬

the

week

last

New

price

as

was

from

down from 38 to

were

represents

ous

13

slight rise in failures occurred

falling off from
the
previous week's high level, comjnercial and industrial failures in

tinued

decline

high level

Food

Demand for

shown by
orders, order backlogs and stocks

-,

the

the Pacific States where
A

•

the

week,

States with
12, and
England States with 10.

of

failing

10.1%,

this

Pacific

increase

of

failures

New

166,200,000 kwh. for the corre¬
sponding week of last year, an

,

in

East North Central States with

week.

with

pound

per

the

movement

last

finished

more

May 25, 1947, compared
173,400,000 kwh. for the cor¬
responding week of 1946, or an

the

prices

an

ended

10

checked

downward

facturers showed

preceding week but exceeded
by a wide margin the 6 occurring
in the comparable week of 1946.

dollar

silverware and other

to

improved de¬

mand

er

States had

Middle Atlantic
twice

Three

bakers

purchases

low ground for the
season, an up¬
turn resulting from

from

with

>

a

the

ago.

most

as

limit

marketing movement
passed.
Coffee prices

commercial

and

failures

other regions

any

previous
last

low level.

about

23,

the

from

as

construction

very

to

nearby needs. After touching

(Continued from page 3)
the week

slow

continued

The State of Trade

11

(3039)

was

an

June

1.

1946.

on

groups
1926-28

115.3.

combined
base

were:

May

31,

1947,

153.1;
.

.

.

May
!

24, 1947,
J k
.

.

148.0

152.2.; and
IHIM

12

new

The volume of bankers dollar acceptances

30, amounted to $215,100,000,

outstanding

*

decrease, of $12,930,000 from the March
581 total, according to the monthly acceptances survey issued on
May 13, by the Federal Reserve Bank of New York.
As compared
a

Saturday Bank Closing

Pa.

oil, lard, vegetable oils and black pepper.
Cocoa beans were higher
reflecting the tight world supply.
As a group food prices were at
the same level as in late April and 44.4% higher than the correspond¬

April

on

crops.

cheese.

April 30, $215,100,000

Branch Observes

Pitts. Res.

with light demand and expectations of large
Increased demand caused small . price increases for
Among other foods there were substantial declines for oleo

tomatoes also declined

Bankers Dollar Acceptances Outstanding on

1947,

Thursday, June 5,

FINANCIAL CHRONICLE

THE COMMERCIAL &

(3040)

to the Saturday
Pennsylvania banks,
Allan
Sproul, President of the
Federal Reserve Bank of New
York, issued a circular on May 22
to
banks
in
the«>local district
respect

With

of

closing

ing week of last year.
"Higher grain quotations
ucts 0.2% during the week.

raised the group index for farm prod¬
Continued heavy demands for export
saying:purchases by the government caused increases for
"Under the provisions of Act
$46,221,000.
most grains.
Quotations for livestock declined with good supplies.
No. 52 of the General Assembly
In the month to month comparison, Exports and those figures
Sheep quotations were down more than 6%, hogs and cows about 2%.
of Pennsylvania, approved May 1,
based on goods stored in or shipped between foreign countries were
Decreased demand also caused lower, prices for live poultry.
Raw
higher, while Imports, Domestic Shipments, Domestic Warehouse cotton quotations increased lxk% with good export prospects.
As a 1947, banks in the State of Penn¬
sylvania may remain closed on
Credits were lower, and Dollar Exchange remained unchanged.
.
group prices of farm products were 0.2% lower than a month ago
any Saturday or Saturdays upon
and 29.2% above late May, 1946.
In the yearly analysis of those same items, Imports, Exports and
approval of their Boards of Direct
Domestic Shipments were higher, while the others showed a decrease
"Other Commodities—Among other commodities there were both
tors with 15 days public notice.
from April 1946.
increases and decreases with the average for all commodities other
Pursuant to such act and consist¬
than farm products and foods up slightly.
The Reserve Bank's report follows:
Prices of cattle feed again ent with the action of the Phila¬
increased and prices of some fats and oils rose following recent de¬
delphia Clearing House Asociabankers dollar acceptances outstanding—united STATES
clines. However, prices of castor oil, soybean oil, oleic acid and soap
<■
tion, the Federal Reserve Bank of

with

a

before,

year

by

£

New

$17,960,000

139,606,000

146,975,000

100,514,000

13,942,000

12,578,000

1,367,000

2,053,000

900,000

1,094,000

1,215,000

4,177,000

4,507,000

3,591,000

4,596,000

4,951,000

3,868,000

1,774,000

2,450,000

728,000

95,000

159,000

300,000

3,443~000

3,447~000

551,000

25,417,000

30,492,000

$215,100,000

$228,030,000

$168,879,000

Philadelphia
Cleveland

5

Richmond

6

Atlanta

.—

7 Chicago
8 St. Louis

Minneapolis

10

Kansas

11

further declines for

were

Dallas

794,000

City

12 San Francisco

$12,930,000

for

Increase

constitute

at banks located in

OF

CREDIT

"Pursuant

Apr. 30, 1946

Apr. 30,. 1947

$157,709,000

$114,224,000

42,035,000
12,191,000
13,259,000

35,887,000

15,519,000

13,508,000
13,536,000

11,029,000

18,634,000

101,000

Kxpons

Mar.

$139,828,000

Imports

101,000

386,000

7,289,000

9,087,000

—.———

Domestic

shipments

Domestic warehouse credits
Dollar

exchange

Based on

31, 1947-

products

Fuel

147.0

146.7

4-26

5-25

sistent

1947

1946

Pittsburgh Clearing

146.8 ,110.7

176.9

176.3

177.6

137.2

160.3
166.4

161.1
166.4

161.1
166.7

160.3
171.9

111.0
120.9

138.3
104.3
141.8177.0

138.5
104.1
141.8
177.4

138.0
104.0
140.7
178.6

137.8
103.9
140.8
178.0

108.2
87.1
109.4
127.2

products

leather

and

Textile

products
lighting materials

and

Metals

7,686,000 '

1947

;

Hides

goods stored in or shipped

between foreign countries

1947

177.2

:

Poods

metal

and

products-.

i

materials

Building

0.1
0.2

0.1

+ 32.7

0.2

+ 29.2

0

+
—

+ 44.4

3.2

0.5

in

decrease

been

due

was

19

outstandings

decreases

principally

against

exports

part of

the

increase

that

in

bills

in

imports

Cleveland

+

0.4

+ 27.8

business on any

0.2

+

0.4

+ 19.7

+

0.7

+

0.6

+ 39.2

3.4

+

—

0
0.2

0.1

coffee,

$71,031,000

HELD

Bills

of others

MARKET RATES ON

Days

1925

—

29.6

125.9
129.4
115.9

127.2
128.6

130.5
128.6

109.4

114.9

115.2

.96.6

160.3
142,6

160.2
143,2

142.1

142.2

160.1
142.0
141.9

161.3
144.7
141.1

124.2 + 0.1 — 0.6 +29.1
101.7 — 0.4 •— 1.5 +40.2
106.2 —• 0.1 + 0.7 +33.8

140.4

140.5

140.2

140.1

104.9

—

132,2

132.1

131.7

132.0

104.1

+

materials—

farm

products^.

Dealers" Buying Rates

MAY 13,

1947

0.6

+ 18.3

+

1.1

+ 20.6

;

:

0.1 + 0.2 +33.8

than

products and foods

Farm

0.1

+

0.2

+

27.0

Dealers' Selling Rates

%'/e

7/s
Wi'c
%
%%

\lVo

ii'A

n %

Cattle

1%

38 %

Grains

120

150

—

180-

PERCENTAGE

\lr/c

'

—

—

—_

Fats—

Other

Farm

—:—

Products——.——+—

Shoes

„

Latest Summary of Copper Statistics

—,—

Crude

Rubber

STATISTICS,
THE

A.—REPORTED

S.

U.

BY

MEMBERS

&

Fruits

Vegetables

&

Poultry

Stocks

Deliveries

Year

1941-*.

Year

I,0b5,bb7

JjHb.yab'

1,045,541

.75,564

or

1942—

1.152,344

1,135,708

1,635.236

1943__

1,194,699

52,121

1,636,295

66,780

—42,608

Year

1945-

843.113

1,517,842

Year

1946_

604,071

1,260,921
505,105
115,601

651,260
11325,903

4Mos., 1947_

•

353,138

65,309

76,512
30,832

909
222

+ 16,636

+

72,799

J946_

Feb.,

19461946-

41,832

20,139

58,590

70,249

+

9,732

+

4,320

+

Apr.,

1946-

29,280

18,989

65,448

+

b9,008

41,667

-

49,923

,

86,089

,

_

74,339

909

—

+

May,

1946_

31.897

20,551

75,754

June,

1946-

32,785

23,870

95,267

79,145

+

July,

1946-

56,906

97,527

101,183

Aug.,

1946_

64,462

43,606
59,591

118,381

94,669

+

4,871

Sept.,

1946-

69,748

67,803

113,158

98,619

+

1,945

Oct.,

1946-

1946-

1946-

Jan.,

72,807

77,947

75,066

3,391
22,038

3,140
2,042

1,096

80,144

143,692

76,680

1,888

1947-

74,474

77,591.

117,734

74,645

3,117

Mar.,

1947-

84,356

88,131

123,590

69,727

3,775

88,817

107,270

120,089

222

3,950

+

7,458

—

265

—

1947-

1947..

6,514

—

Feb.,

♦Includes

10,306

+

78,674
78,256

—

+
+

91,161

141,218

—

10,064

—

—

—

87,139

4,152

2,035

4,918
5,398

primary and secondary metals.

warehouses,

tons of primary metal and 34,571
for

the

month

of

but

not

March,

were

of

prices

about

of

900

in its current weekly report, esti¬
that the amount of electrical energy distributed by the electric

mates

31, 1947 was 4,429,corresponding week of
3,741,256,000 kwh. The
current figure also compares with 4,66*2,858,000 kwh. produced in the
week ended May 24, 1947, which was 18.3% in excess of the 3,941,865,000 kwh. produced in the week ended May 25, 1946.
The largest in¬
creases
were
reported by the Southern States and Pacific Coast
groups which both showed gains of 23.8% over the same week last

light and

power

PERCENTAGE

INCREASE

OVER

SAME

largely responsible for

May 31

Division—

a

.

May

May 24

May

17

10

May

3

8.6

5.9

8.5

10.2

9.5

12.3

9.2

10.7

8.3

21.6

18.6

18.9

24.2

17.3

14.2

14.9

13.6

17.5

23.8

23.7

23.6

23.7

18.3

6.7

Industrial—,

Central
States.'

'

Coast

15.2

19.2

20.1

18.0

23.8

23.2

19.1

18.3'

18.7

18.3

17.2

19.0

FOR

18.4

RECENT

(Thousands

WEEKS

%

decline

May 24, 1947, according to the Bureau of Labor Statistics, U. S.
Department of Labor.
The Bureau states that "at 146.9% of the 1926
average, the index was 0.1% higher than in late April and 32.7%
above a year ago."
The Board further reported as follows on May
29 on the week ended May 24:

-

Week Ended—

1947

4,777,207

Feb.

Feb.

prices of foods declined
0.5% with lower prices in all subgroups except dairy products. Wheat
flour prices dropped nearly 2% in anticipation of a bumper wheat
,cropland,Jower prices.
Prices of corn meal increased. Among meats,
Which declined fractionally as a group, prices of mutton, pork loins,
dressed poultry were lower, while veal and cured pork increased.
.Liberal supplies caused price decreases for oranges, onions, and
white potatoes in some markets.' Prices of dried fruits and canned




a

group

(candy,
sugar,
It is stated that
parcel post packages must not
weigh in excess of 22 pounds. ^

chocolate, etc.).

|

Result of Treasury
Bill Offering

Secretary of the Treasury*
announced on
June 2 that thp
tenders for

Feb.

22

Sept.

+ 21.8

+ 19.9

Mar.

8

4,786,552

3,952,539

+ 21.1

Total

1,538,452
1,537,747

1,702,57C

1,514,553

1,683,26?

4,763,843

3.987,877

+ 19.5

4,017,310

+ 18.5

4,401,716

1.480,208

1,679,589

3,992,283

+

18.5

4,329,478

1,633,291

1,699,822

4,619,700

4,014,652

+ 15.1

4,321,794
4,332,400

1,465,076
1,480,738
1,469,810

4,660,320

3,987,145

+ 16.9

4,411,325

1,454,505

+ 17.7

price

basis

lent

rate

of

at 99.905
i;-

and

99.0954-; equiva¬

discount'approxi¬

bids:

,1,519,679

4,728,885

3,987,673

$1,307,369,000

mately 0.376% per ahnufir. * Hit
Range of accepted coihpetitiVOl

4,759,066

4,693,055

accepted,

(includes $14,356,000 entered on a

1,699,250
l,706.71f

15

5

applied for, $li,87j9,8C-3,00OJ

Total

1,726,161
1,718,304

Mar. 29

Apr.

on

1,512,158

4,472,110
4,446,136
4,397,529

Mar.

offered

May 29, were opened at the Fed¬
eral Reserve banks on June 2.

1,578,817
1,545,459

4,505,269
4,472,298
4,473,962

4,000,119

were

there¬
bills to

or

to mature

4,538,552

+ 20.5

3,922,796

which

4,

and

1929

+ 21.0

4,797,099

5

1932

+19.9

i_;

$1,300,000,000

June

dated

1945

3,948,620

Mar.

{
j

The

Average price,

Change

Over 1946.

3,982,775
3,983,493

4,801,179

15

sweets

stances;

accepted in full).
Kilowatt-Hours)

4,778,179
4,777,740

8-

Feb.

1946

of

Mar. 22

"Farm Products and Foods—As

Flour;
gruel
(cereals to b$
cooked, * such
as
oatmeal, * rice,
cream of wheat, etc.); fatty sub¬

fixed

in average primary market prices during the week ended

total number of articles

or

year:

15.7

Total United States—
DATA

a

permissible to send, until the end
of 1947* the following foodstuffs
without
limit: as " to
the gross

be

4.2

_

Rocky Mountain—

*

for

about of 91-day Treasury

YEAR

LAST

21.3

England

Pacific

WEEK

Week Ended

Middle Atlantic—
Central

allowed

permit when
personal use, it is

without

industry for the week ended May

Major Geographical

1947, have been revised.

enter

intended

109,000 kwh., an increase of 18.4% over the
last year when electric output amounted to

New

tons of secondary metal.

the articles previously

to

weight

The Edison Electric Institute,

including

Wholesale Prises Dropped 0.1 % in Week
Ended May 24, Labor Department Reports
prices for foods

index

monthly index.

with the

Southern

Lower

weekly

BLS

Output for Week Ended May 31, 1947
18.4% Ahead of That for Same Week Last Year

West

of 0.1%

the

Electric

§Computed by difference between mine and refined production.

NOTE—Statistics

on

year.

SAt refineries on consignment and m exchange
consumers' stocks at their plants or warehouses.

^Includes 291,332

to

0.2

,-i

per

4,801

8,915

80,832

129,206

77,578

4,090

—

+ 13,300

90,896

336,481

73,024
•

'1,540

—

10,291
+ 11,346

Dec.

3,713

—

8,256
21,693

75,756
93,647

Nov.,

0.2

—

—

Postal

13,188

1,446

—10,830

Jou.,

58,178

Meats

on
May 29,
that the
Administration
of
the
Union of Soviet Socialist Repub¬
lics has advised that in addition

nounced

14,659

47,189

—

+

—

—

87,139

Mar.,

•<

Chemicals

0.8

Miscellaneous

directly

Refined
—

—12,172

1944-

1,206,871
1,098,788

1,643,677

Year

1,056,180
841,667

0.3
0.2
0.2

10,255

Decreases (—)

§Blister
—4b,b71

Year

—-

Material

67,208

Stock Increase (+)

End of

JOt

0.4

measures

Period

Export

0.5

commodities which
changes in the general level cf primary market prices.
This index should
o« distinguished
from thri daily Index of 28 commodities.
For the most part, prices
are
those charged by manufacturers or producers or are those prevailing on com¬
modity exchanges.
The weekly index is calculated from one-day-a-week prices.
It is
designed as an indicator of week-to-week
changes and should not be compared
•Based

to Customers

In U.S.A.

Parcel Post to Russia

Goods

0.8
——■

Other

SReflned

Refined

IIMI

0.1

Postmaster Albert Goldman an¬

Cotton

1.2

Products
Foods

COPPER INSTITUTE

Production

—

Paint Materials—

Paint &

Other

OF

tin Tons of 2,000 Pounds;

♦Crude

0.1

0.1

.

5.3 Other Textile Products
1.9 Leather
1.2 Drug & Pharmaceutical

—

Livestock

Cereal

COPPER

0.3

item bearing

day closing of

Decreases

The Copper Institute on May 15 released the following statistics
pertaining ,to production, deliveries and stocks of duty-free copper
through March, 1947 (all sources U. S.A. beginning April, 1947):
,

OF

0.6

Hides & Skins
4Petroleum & Products
Anthracite
——
Dairy Products
k

9.8
3,1
1.2
0.8

Feed

on the Satur¬
banks in Pennsyl¬
vania appeared in our issue of
May 15, page 2656.
1

An

Increases

Oils &

SUMMARY

land."

MAY

11U

Septem¬

Accordingly, for the
period June 7, 1947 to Sept. 27,
1947, inclusive, Saturday will not
constitute a business day in de¬
termining the time when credit
will
be given, pursuant to our
time schedules, for deferred credit
items drawn
on
or
payable at
banks located in the area served
by the Pittsburgh Branch of the
Federal Reserve Bank of Cleve¬
1947.

ber,

FROM

CHANGES IN SUBGROUP INDEXES
17, 1947 TO MAY 24, 1947

% f/o

lVr

90

,Apr..

+

0.5

than

.

All commodities other

PRIME BANKERS ACCEPTANCES,

60

,

0

$16,219,000

30.

•j,

products

All commodities other

$154,262,000

Total

allied

Special Groups—

BANKS

$83,231,000

and

Rousefurnishings goods
Miscellaneous commodities

drawn
a large

July, August and

June,

30.4

126.0
129.4
116.5

Chemicals

there

This decrease

wool.

Raw

ACCEPTING

BY

Decrease for month

CURRENT

and

tea

96.6

—

Manufactured products

since

as

the month of April.

in
of

category,

BILLS

Own

increases

Bills
rice, flour and general merchandise accounted for
decline

a

cotton,

of

seasonal

considered

be

may

against 4

as

to

be open for
Saturday during

not

will

+ 37.6

0.1

0

Semi-manufactured articles—_

The

have

of the
House Asso¬
ciation, the Pittsburgh Branch of
the
Federal
Reserve
Bank of
action

the

with

5-17

1946

1947

148.9

All commodities
Farm

provisions of

the

to

above-mentioned act, and con¬

the

1947

5-25 1

4-26

5-10

5-17

1947

Commodity Groups—

the Third Fed-*

eral Reserve District.,.

"

NATURE

TO

de¬

payable

credit items drawn on or

May 24, 1947 from—
5-24

ACCORDING

business day in

a

termining the time when credit
will be given, pursuant to our
time
schedules,
for
deferred-

Percent changes to

$46,221,000

year

Saturday will not

1947,

24,

May

(1926=100)

!h

Accordingly,

1947.

1947 1

MAY 24,

ENDED

WEEK

FOR

PRICES

WHOLESALE
Grand Total

will be closed on
beginning May 24,
on and after

Philadelphia

each Saturday

23,028,000

—

4

continuing their general downward trend.
China wood oil and linseed oil
reflecting improved supplies.
Crude rubber continued to decline.
Higher prices were reported for some crude petroleum and petroleum
products and anthracite.
Reduced buying by. rope manufacturers
brought a substantial decline in prices of Manila hemp, and print
cloth decreased slightly following last week's increase.
On the aver¬
age prices of all commodities other than farm products and foods
were 0.2% higher than 4 weeks earlier and 27.0%
above the corre¬
sponding week of last year."
substantially,

There also

$21,712,000

12,699,000

York

with emergency

dropped

$21,026,000

3

9

of

Apr. 30, 1946

Mar. 31, 1947

Apr. 30, 1947

Boston

increase

an

districts

reserve

federal

Federal Reserve District—
1

represents

30 total

April

the

1,687,22c

1,696,543

1,709,331

High, 99.906, equivalent, rate
discount

approximately

h

of

0.372:%!

k
:L."
"Low, 99.905, equivalent rate of

per annum.

discount

approximately

0.376%!

per annum.

Apr.

12

Apr.

19

Apr.

26

4.S67.997

3.976.750

+ 17.4

4.415.889

1.429,032

1,588,434

May

3

4,640,371
4,653,137

4,011,670

+ 15.7

4,397,330

the low

+ 19.0

4,302.381

1,436,928
1,435,731

1,698,942

3,910,760

1,704,426

4,615,983

3,939,281

+ 17.2

4,377,221

1,425,151

1,705,460

4,662.858

3,941,865

+ 18.3

4,329,605

1,381,452

1.615.085

There wa§ a maturity of similarjv'issue'of ib^slQp Tune 5; in thef

May

10

May

17

May 24—

May 31——

—

"4,429,109

3,741,256

+ 18.4

4,203,502

1,435,471

(69% of the amount bid, for

price

was

af

accepted,)

1,689,925

"oi Lib'
fir

[Volume*165

Nuftiber

Trading

!

4600

THE COMMERCIAL &
FINANCIAL CHRONICLE
Federal

New York Exchanges

on

total of 1946.

Exchange Commission made public on May 28
figures showing the volume of total round-lot stock sales on the New
'York. Stock
Exchange and the New York Curb Exchange and the
volume of round-lot stock transactions for the account of all members
of these exchanges in the week ended
May 10, continuing a series of
current figures being published weekly

-by the Commission.
shown separately from other sales'irr these figures.

are

Short

on the Exchange of
3,940,360 shares. This com¬
trading during the week ended May 3 of 1,735,988
19.03% of the total trading of 4,560,060 shares.

pares with member
or

Week ended

Curb Exchange, member trading

10 amounted to 285,130 shares, or 16.05% of the
on that Exchange of
888,460 shares. During the week
ended May 10 trading for the account of Curb members of
327,975
shares was 17.01% of the total trading of
963,850 shares.
Sales

the

on

Transactions

for

New

Stock

York

Account

of

Exchange

Members*

and

TT

„

U.

Total

and

current

NYSE Odd-Lot

week,

Municipal—

the

1946

of all odd-lot dealers and special¬
ists who handled odd lots on the

buildings,

public

follows:

as

week

,

.

WEEK

ENDED

MAY

10,

current
figures bepublished by the Commission.
figures are based upon re¬
ports filed with the Commission
ng

construction.

STOCK

tOther

Total
,

for

the

for

Account

of

215,340

■'

1

"

of

they

specialists in stocks in which

purchases.
Short sales

tOther

sales

2. Other

Short

sales

Total

Carrier

15,270

sales

Follansbee

common

International Minerals & Chemical

668,400
Stock

for

WEEK
Round-Lot

Tea

Johnson

on

the New York Curb

Account

ENDED

of

Members*

Exchange and Stock

(G.

National

1947

10,

Sales:

Penick

Transactions

common

Scovill

888,460
for Account of Members:

Oil

&

Chemical

Company,

Stores

Corp.,

Sinclair

1. Transactions of

specialists in stocks in which

tOther

'4

81,960
4,285

-

sales

Wilson

&-

1,470

1,670

96

100

49

50

120,200

192,700

i

:

$1.20

cum.

Working time lost because of
labor-management disputes regis¬

(7)

None

(8)

65,986

9,014
2,610

preferred—,

tered

None

954,172.68
None

170

9,814

86,955

None

90

(9)

90

2,790

Short

Short

:

5,114

For
ness

sales
sales

(6)

32,350

19

shares
to'

Total

sales—

(7)

5.33

34,950

4. Total—

man-days

Short

151,640

sales—

Total

<0. Odd-Lot

(10)

133,490

transactions for Account of

Customers'

short

other

sales

Total

27,

1946.

735

market
shares

Total

•The term

Jan.

1947

1,

Total

of

of

plus 2,540 shares

own

debentures;

acquired

less

1,219 shares held in Treasury on

Extra

and

459

shares

Compensation

53,839

of

tin

calculating these

Includes all regular

Including

special

percentages

the

•.

tRound-Iot

jrules

L„,t

are

short

included

{Sales

<

marked

sales

with

which

"other

are

Aero

and associate Exchange members, their

partners.
total

^©ompared with twice the total round-lot volume
Hhe Exchange volume includes only sales.

<■',

2,300

of
on

members'
the

purchases

Exchange for the

and

sales

reason

Is

that

27, "1947.

are

included with

"other

Supply Mfg. Co., Inc., class B_
General Corporation common

Civil

sales."

Engineering Construction Totals
$72,226,000 for Week

Civil engineering construction volume
in continental United
states totals $72,226,000 for the four-day week ending May 29, 1947,
as reported by "Engineering News-Record. This volume is 36% below
the previous, five-day week, 0.5% above the
corresponding four-day
Ciweek of last year, and 35% below the previous four-week moving
average. The report issued on May 29 added:
t\.
Private construction this week,
$39,037,000, is 29% less than
'last week', but 33% above the week last year.
Public construction,

Corroon

Crown

&

Reynolds Corporation,

Central

Petroleum

Corp.,

^33,189,000, is 43% below last week, and 22% less than the week last
";year. State and municipal construction, $27,433,000, 8% below last
^week, is 26% below the 1946 week. Federal construction, $5,756,000,
Ss 80% below last week, but 6% above the week last year.
s

Total

engineering construction for the

period of 1947
recordsJd cmnulative total of $2,156,690,000, which is 4% above the
]" total for the like period of 1946. On a cumulative basis, private constriiction iii'
(ttitfe:)$i.290,526,000, which is 3% below that for
1946. Public toiistrUCtibVi, $886^164,000, is 16% greater than the cu¬

"

mulative total for the corresponding period of 1946, whereas State
and municipal construction, $640,047,000 to date, is 28% above 1946.




for

$1 div.

more

ever,

A

New

Co.,

The

tion

822

51,968

79,182

30,824

common-,

"

50,474
•2,200

"271,290

actual

000,000
I947

60

Outstanding on April 30

Apr. 30
Mar. 31

Feb.

28

Under

Bank

Jan.

31

1946—
Mar. 29

266,000,000
242,700,000
236,400,000

Feb.

of

New

178,200,000
173,700,000

1945—

Dec.

31

31

Nov.

29

226,800.000

Oct.

31

31

201,500,000

Sep. 28
Aug. 31—

158,900.000

30

Nov.

Oct.

Sep. 30
Aug. 31

July 31
June 28

»

227,600,000

147,600,000
141,600,000
130,800,000
121,400,000

July 31
Jun.

29

May 31

May 30

126,000,000. Apr.

Apr. 30

148,700,000

30

cases,

arranged

settle¬
before
-

„

^

156,100,000

127,100,000
;

111,100,000

110,200,000
106,800,000
100,800,000
102,800,000

118,600,000

f

of. May 24, Associ¬

advices

the

from

New

Tokyo
York

-

French

Bank

of

Indo-

China reopened its branch here
today with a headquarters permit to operate on a limited scale
to
meet
requirements of the
French Mission and other French

personnel here.

171,500,000

.

date

Press

The

York

$

28

Dec.

993

stoppages developed.

appearing
in
"Times," said:

paper

256,000,000

In

were

Opens Tokyo Branch

on

<j<

Concilia¬

French Indo-China Bank

273,990

310

of $256,000,000 of open
outstanding on April 30, 1947, compared with $266,March 31, 1947, and $149,000,000 on
April 30, 1946.
The following are the totals for the last two
years:

market

States
finished

on

28,937

2,100

Reports received by the Federal Reserve
from commercial paper dealers
show a total

United

ments

ated

Commercial Paper

April and in¬

132

28,437

.__

from 325

rose

6,130

49,674
•

April, 1946.

stoppages

workers.

31,205

6,055
None.

Merritt-Chapman & Scott Corp., 6Va% A preferred
Niagara Share Corp., B common
Tobacco and Allied
Stocks, Inc., capital

The April loss, how¬
more than half

assign¬
1,223 dispute cases in
April, 230 of which were work
stoppages
involving
7 3,5 0 0

640

886

accounted

three-fourths of

little

Service

ments

None

i

Corporation, $2 div. preferred
(Walter E.) &
Company, 4% preferred
Hygrade Food Products Corp., common
Kleinert (I. B.) Rubber

workers
than

at 1.1% of the available
working time.

2,000

500

lock¬

mated

9,160

637

and

600,000 workers.
The
man-days of idleness from all
stoppages in April was esti¬

8,260

None

York

strikes

volved

35,555

preferred

was

today.

May, 1946. Strikes by

the total for

Report

stqck

idle¬

1,100,000
month, but in

the greatest month¬

from

the total.

33,454

8,910

1946—

22-week

loss

telephone

open

Shares

25,304

common

Manufacturing Co., debenture
Electrographic Corporation, common
Equity Corporation, $3 conv. preferred
First York
Corporation, common

*

*

ly

Per Latest

6,460

the

about

in March to 460 in

32,954

American

from
York

went t>n to say:

per

was

outs since

1947.

Previously
Reported

American General
Corp., $2 div. ser. pfd
Charis Corporation, common

First

■r i

on

*.

Heller

U

sold

27

months

reported

This

during March pursuant

.

Dennison

exempted from restriction by the Commission's

sales."

"short exempt"

tistics

retired

plus 645

merger;

March 31,

issued

common

in

shaves

Shares

42,153

partners,

shares

Plan.

53,839

sales
"members"

:

735

The New York Curb
Exchange also made public on April 15 the
following changes in holdings of reacquired stock as
reported to it
by issuers of fully listed securities traded on that
exchange:

16.05

0

purchases.

their

stockholders'

per

*

purchased;

Company and Class of Stock-

fflrms and

retired

prices.

1946.
on

conversion

of preferred

Employee

March

Specialists—

sales

{Customers'

Oct.,-31,

at

100

125,105

sales

account

shares purchased in open market.
64,773 shares retired per stockholders'
approval at meeting held March 25, 1947.
shares acquired and retired
during March.
650 shares acquired on March
21, 1947,
3,440 shares retired at meeting held

(9)

8,385

sales—

tOther

own

April said
New

the

averaged

72,500

(8)

Total purchases.

for

three

in

May

April, the loss of time increased
precipitately to 7,750,000 mandays, the Bureau of Labor Sta¬

in accordance with provisions
relating to annual retirement fund.
for 1946 sinking fund instalment
were
cancelled and re¬

held

from

market.

2,600
;

166,849 shares
meeting held April 2, 1947.

of

as

March.

purchased

Dec.

shares

during

annual

cancelled

shares

59,680

acquired

at

shares

tired

0.97

7,300

purchases

tOther

334

and

5,800

transactions Initiated off the floor-

Total

760

(5)

1,500

sales

3. Other

Held in Treasury

shares

approval

10,000

sales

Total

-

32.500 shares acquired

(3)

the floor—

on

sales

tOther

,

,

4,904

(2)

9.75

91,240

2. Other transactions initiated
Total purchases

(1)

(4)

sales.

rise

advices

(10)

NOTES
Total

sharp

Washington to
"Times,'* which

954,173.73

preferred

Company, $3.75 cum. pfd.___l
Chlorine Products
Corp., $3.75 cum. preferredCo., $4.25 cum. preferred

a

special

None
-■*

Time Lost in April
Because of Strikes

(6)

64,773

cum.

re-

or¬

and sales to
liquidate a long position
which is less than a round lot are
reported
with "other sales."

(6)

67,586

Tide Water .Associated Oil

Westvaco

744

15,216

6,614

Oil

Corp., common
Sloss-Sheffield Steel & Iron
Co.,

registered—

ere

Total purchases
Short sales

763

common

Manufacturing Company, 3.65%

customers'

are

odd-lot

sales."

offset

960

15,675

common

"short-exempt'

"other

to

ders

1,188

4%

common

305,160

3.099

1,198

v

189,760

shales

marked

with

tSales

(5)

2,010

Co.,

ported

of

10,000

940

...

♦Sales

(2)

1,219

189,760

___,

sales

Number

17,787

3,149

common

$22,985,891

Round-Lot Purchases by Dealers—

(1)

23,950,

preferred

common

Ford, Ltd., Inc.,

&

Inc.,

Plymouth

877,250

sales.,

None

7,950

Corp., common—.
Manufacturing Co., common..

&

16,113

8,900
conv.

Corporation,

.

,,

(4)

common

Pictures

Pittsburgh Coke

11,210

sales

they

(3)

800

Products

Marine

Paramount

Total for Week

sales

Inc.,

Distillers

Outboard,

MAY

Reliable

•

None

Total

38,328

16,787

Johnson, cum. 2nd pfd., series A,
Johnson, common—
R.) Co., Inc., $5 prior preferred—

&

Kinney

(Shares)

Co.,

&

Johnson
Sales

Transactions

,

86,539

1,560

I—_

659,797

o

tOther sales

205,358

...

29,281
630,516

,

4,900

None

;

sales

sales

Short sales

54,039

101,940

f

B. Round-Lot

Corporation,

sales

total

Dollar value

204,358

ser._____

other

Round-Lot Sales by Dealers—
Number of Shares:

92,400

38,438

SV2I0

short

61,400

178.058

Motors Corporation, common
Brothers, $4.50 cum. preferred
Company (The), common
Guantanamo Sugar
Company, $5 cum.

16.96

Customers'

Report

4,700

preferred,^

pfd.

22,666

Number of Shares:

12,500

I—™

566,460

sales.

Round-Lot

Total

cum.

cum.

21,927

sales

Customers'

90,600

Glidden

Jewel

tOther

Steel

General

3.77

668,630

sales

Total

Short

ser.

Company,

739

sales

total

•Customers'

pfd.

conv.

sales

other

stock

52,800

capital.:
cum.

Gimbel

tOther

A. Total

Corporation, 4%

City Investing

161,850

Total purchases
Short sales

Total

Steamship Company,
Company, 6%
Company, common

Corporation, common
Company (The), capital
Burlington Mills Corporation, common

146,580

4. Total—

„■

Borden

135,310

sales

_____

Atlas

2.77

113,540

sales

of

short

Customers'

Per Latest

10,800

_____

pfd. series A

cum.

$29,367,495

Shares

Reported

pfd

conv.

American Hide and Leather
Associates Investment

97,240

—

Short

tOther

American-Hawaiian

16,300

pr.

Week

30,149
852,387

Customers'

amount

Previously

of Stock—

Alleghany Corp., $2.50
Alleghanw Corp., 5V2 %

104,960

sales

Total

For

Dollar value

heretofore reported
by the Department of Stock List:

as

Company and Class

sales

Total

1947

Odd-Lot Purchases by Dealers—
(Customers' sales)

April 15 that the

on

10.42

393,010

3. Other transactions initiated off the floor—
Total purchases

SPECIALISTS ON THE N. Y.
STOCK EXCHANGE

Number of Orders;

Shares

floor-

purchases

tOther

announced

322,640

transactions initiated on the

Total

held

70,370

—

sales

Total

:

Exchange

following companies have reported changes in the
428,360

-

ODD-

•Customers'

The New York Stock

registered—

are

Total

spe¬

THE

Odd-Lot Sales by Dealers—

N. Y. Stock and Curb Listed Firms

Odd-Lot

Dealers and Specialists:

1. Transactions of

FOR

Week Ended May
17,

Changes in Holdings of Reacquired Stock of

■>'

■

Members

Accounts

Odd-Lot

and

Number of orders
Number of shares

3,940,360

Transactions

Except

TRANSACTIONS

AND

totals $691,568,000, 16%
greater than the $594,479,000
reported for the corresponding period
of 1946.

3,725,020

sales

Round-Lot

dealers

(Customers' purchases)

—

sales

odd-lot

LOT ACCOUNT OF
ODD-LOT DEALERS

Total for Week

sales

Short

the

oy

cialists.

1947

A. Total Round-Lot Sales:

Exchange for the
17, continuing

May

of

The

}

'

■

ended

series

a

waterworks, sewerage, commercial

buildings, and unclassified

York Stock

New

dropped this week from
classes recorded gains this week

week

Trading

Securities and Exchange
Commission made public on
May
28, a summary of complete figures
showing the daily volume of stock
transactions for odd-lot acco»»*

All of the classified
construction groups
the previous week. Five of
the nine
over

13

The

New capital for eonstrutcion
purposes this week totals
$42,761,000 and is made
up of $14,276,000 in State and
municipal bond sales
and $28,485,000 in
corporate securities. New
capital for construction
purposes for the 22-week
period of 1947

Round-Lot Stock

(Shares)

the

May 29,1947 May 22,1947 May 30,1946
(four days)
(five days)
(four days)
$72,226,000
$113,164,000
$71,855,000
39,037,000
54,617,000
29,412,000
33,189,000
58,547,000
42,443,000
27,433,000
29,891,000
37,028,000
5,756,000
28,656,000
O,4Ib,000

„

Construction
Construction
Construction

Private

for

was:

S.

Public

volume

New Capital

May

Stock

'

m

during the

total volume

Yotal Round-Lot

construction

.

the total transactions

On the New York

22-week

,

engineering

last week, and the 1946 week

State

Trading on the Stock Exchange for the account of members
<except odd-lot dealers) during the week ended May 10 (in round-lot
transactions) totaled 1,337,030 shares, which amount was 16.96% of

shares,

below the

.

Civil

The Securities and

sales

(3041)

construction,, $226,117,000, dropped 9%

,

;

It is the second bank to start

operation in Japan under
pation

license.

occu¬

Walter*.K:' Le

Count, Occupation Firiaiifce'di¬
vision Chief, said several-&thbr
foreign-controlled bank's ;will be
licensed soon.
■

The National City Bank of
New York was the first to begin

operations.

14

Thursday, June 5, 1947

CHRONICLE

THE COMMERCIAL & FINANCIAL

(3042)-

another

Daily Average Crude Oii Production for Week
Ended May 24,1947 Increased 16,800 Barrels
erage

ended May 24, 1947

crude oil production for the week

gross

5,024,850 barrels, a new high record. This was the third week
thalPfflitput.exceeded 5,000,000 barrels daily, and was an increase of
16,800 barrels per day over the week ended May 17, 1947, and a gain
of 265,750 barrels per day over the week ended May 25, 1946. The
current figure was also 153,850 barrels in excess or tiic daily average

was

by the United States Bureau of
requirement for the month of May, 1947. Daily output
weeks ended May 24, 1947 averaged 4,997,100 barrels.

figure of 4,871,000 barrels estimated
Mines

four

the

for

the

as

companies indicate that the in¬
Bureau of Mines basis approxi¬
mately 4,970,000 barrels of crude oil daily and produced 14,927,000
barrels of gasoline 2,010,000 barrels of kerosine; 5,518,000 barrels of
distillate fuel, and 8,292,000 barrels of residual fuel oil during the
week ended May 24, 1947; and had in storage at the end of the week,
97,827,000 barrels of finished and unfinished gasoline; 11,074,000 bar¬
rels of kerosine; 35,212,000 barrels of distillate fuel and 44,499,000
Reports received from refining

dustry as a whole ran to stills on the

barrels of residual fuel oil.
AVERAGE

DAILY

-Actual Production-

State

Week

4 Weeks

Change

Week

Allow¬

*B. of M.

Ended

ables

Ended

from

Ended

Requirements

Begin.

May 24,

Previous

May 24,

May 25,

May

May 1

Week

1947

1946

Calculated

8^000

7,350

48,200

250

500

—

7,650

7,800

500
"*

Virginia—..

••Virginia

—

-

—7

200

5,950
2,150

8,000

Ohio—Other

Kentucky

29,000
47,000

45,700

5,550

2,450

2,550

400

17,950

19,000

100

+

25,650

Michigan

6,450

400

—

—

185,900

210,000

__

750

—

17,500'

18,000

Indiana
Illinois

—

200

••Ohio—Southeast

situation

186,950

209,050

25,600

48,050

600

3,650

+

30,700

42,150

250

—

750

'

tBOO

Nebraska

.

Kansas

275,000

280,000

t287,900

+

1,450

283,200

270,150

Oklahoma

380,000

378,125

t387,000

+

1,250

386,050

372,650

I

District

II

un-3"

was

lead was not as firm as in recent

Zinc buying has quieted
Silver was heavy on lack

down.
of

buying interest by
and the price fell 20
to

gress

weeks.

primary metal in the
week that ended yesterday totaled

ounce.

an

extend

other year."

authority

his

ther

went

for

6,634 tons.

to

to

part

in

say

American
tistics.

~

sumers

&

21,050

21,000
159,150

158.950

District

III

485,150

484,350

District

IV

243,150

District

V

243,400
38,350

District

VII-B

38,200

38,300

District

VII-C.

36,800

36,700

schedule

338,000

Dist.

VI

337.450

112,500

East Texas

Other

112,300

The

VIII

530,150

522,250

District

IX

137,800

137,500

District

X

86,250

86,000

2,226,850

2,216,000

District

2,120,000 t2,241,957

Texas

North Louisiana

Total Louisiana

411,000

455,000

413,800

79,960

Arkansas

Mississippi

New Mexico—So. East)

300

74,600

72,900

2,950

88,900

63,100

1,050

50

1,000

1,150

104,850

95,300

50

450

500

1,750

114,500

115,700

112,000

102,000

105,350
450

Wyoming

108,000

116,700

+

Montana

24,000

22,550

Colorado

39,000

39,800

California
Total United States-

•These

As

certain
that

is

requirements

of Mines

premises

moved

in

be

may

22,700

19,350

39,600

+10,800

913,200

860,200

+16,800

4,997,100

4,759,100

60,900

2,500

62,500

62,550

calculations of the requirements of domestic crude oil
in its detailed forecasts.
They include the

outlined

crude

supplied

pipelines.

either

The A.

P.

stocks

from

I.

or

figures are crude oil only.
from new production, con¬

templated withdrawals from crude oil inventories must be deducted,
the

to

Bureau,

be

from its

estimated

requirements to determine the

of

is

the

basic

net

allowable

are

of

as

for week ended 7:00

May

calculated

1

on

a.m.
a

May 22,

31-day

1947.

basis

and

Tungsten

May 23 that it has
withdrawn its "fixed" prices from

tungsten

will
,

;

.

of

shutdowns

and

entire month.
With the exception of
for certain other fields for which
shutdowns were ordered for from 4 to 13 days, the entire State was ordered shut down
for 4 days, no definite dates during the month being specified; operators only being
required to shut down as best suits their operating schedules or labor needed to
fields

several

which

operate leases,

RUNS

the

for

exempted

entirely

and

TO

of

Conservation

STILLS;

Committee

PRODUCTION

of

California

Oil

sale.

-

,

$28 to $31 per short ton unit

at

'

■

Tin

in

estimate

this

of

section

include

unreported

amounts

Bureau

% Daily

Refin'g
Capac.
District—

Crude Runs
to Stills

reported

of

and

are

at Ref.

Unfin.

of

Inc. Nat.

Gasoline

Kero

erated

Report'g Av.

therefore

an

on

a

Blended

Stocks

sine

tStks.of

?Stks.

PRICES

DAILY

Dom. Refy.

District No. 2
Ind.

111.

Okla.

Ky

Kans.

Mo

102.2

1,909

20,943

4,816

9,701

7,021

66.9

230

2,421

188

408

87
70

107.7

243

1,122

62

112

119

784

85.3

2,612

19,299

1,430

2,943

417

91.9

1,434

8,970

471

1,254

3,856

237

326

620

14,843

1,888

6,006

5,132

979

2,169

1,132

& Arkansas-

64.4

62

54.4

163

1,701

219

453

..m

Total

U.

May 24

10.500

22.300

23.675

80.000

15.000

14.800

10.500

22.350

23.675

80.000

15.000

14.800

8.—B.

basis May

U.

B-.

22.000

May 28

22.104

Average—

Average prices for calendar week

Louis zinc,
The above

States

deliveries;

and

are

domestic

consumers'

figures shown

above

based on sales for both
for prompt delivery only.

zinc quotations

quotations

trade,

at

25,

stocks

the major United
They are reduced
noted. All prices are in cents per pound.

"E. & M. J. M. & M. M.'s" appraisal of
sales reported by producers and agencies.

are

prices

copper

plants.

are

net

are

As

prices

are

quoted

a

delivered basis:

.

charges

vary

the

reflects prices obtaining in

41

89

15

39

37

461

2,940

80

524

615

861

91.2

2,418

16,511

689

11,277

26,408

the foreign market reduced
refinery equivalent, Atlantic seaboard.. On f.a.s. transactions, 0.075c is
lighterage, etc., to arrive at the f.o.b, refinery quotation.

88.7

4,970

88.7

14,927

*97,827

11,074

35,212

44,499

For

standard

for

cakes

up,

depending

"E. & M.

the

Quotations

of M.

14,522

99,793

10,586

33,844

44,390

discount

1946,

4,844

14,282

t94,679

of

8,226,000

£r??siL kLd in, pip® lines-

barrels.

tStocks

5In addition, there

at

barrels,

refineries,

were

12,412

33,857

flncludes

at

bulk

42,905

unfinished

terminals,

in

2,010,000 barrels of kerosine,

barrels of gas oil and distillate fuel oil and 8,292,000 barrels of residual
produced in the week ended May 24, 1947, as against 2,137,000 barrels, 5,662,000
8,217,000 barrels, respectively, in the preceding week and 2,006,000 barrels,
5,342,000 barrels and 8,671,000 barrels, respectively, in the week ended May 25 1946.

5,518,000

for

copper

up,

on

0.125c

is based

are

on

for

sales

the

in

ordinary

forms

to the f.o.b.

deducted for

of wirebars and ingot bars.
slabs 0.175c up, and

extra 0.075c per pound is charged; for
depending on weight and dimension; for

an

dimensions and
per

quality.

billets an extra' 0.95c
Cathodes in standard sizes are sold at a

New

ounce

was

quota¬

reduced 20

an

May 26, establishing the
7O3/40.
Demand has

on

at

market

moderate

been

Official

York

for

last

the

two

weeks and metal has accumulated
in the hands of refiners and deal¬

Industrial

ers.
on

buying has been
side,
v
inquiry from India by a firm

the light

An

in

the

local

trade

for

10,000,000 ounces of silver created
a

Accord¬

short time.

ing to advices from Bombay, na¬
acquire

silver, but because of tight import
and exchange restrictions no pur¬
chases of foreign silver have been
for

some

in

time

that

The Reserve Bank of In¬

market.

dia continues to control all oper¬
ations

silver involving foreign

in

exchange.

Distributions for Charily

By NY Community Trust
first

the

In

quarter of 1947,
paid out for chari¬
by the New York Com¬
munity Trust.
It was the largest
first-quarter distribution the Trust
has
made
and
compares
with

$166,374
table

was

uses

$124,198

in

initial
Ralph
Hayes, Director of the local 'Com¬
munity Trust, in reporting this
disbursed

the

added:

ice

Society, $13,270; United Hos¬

pital

$10,180;

Fund,

Salvation.

$6,121;
Visiting
Nurse
Service, $5,100; Y.W.C.A. of New
York,
$2,200;
and
Girl Scouts,

The

aggregate

of grants

imiji

11

is 1 Ac
v
Quotations for lead reflect prices- obtained.' for common lead only. The differential
sales in the Chicago district is 10 points under New York; for New England add

month;

on

five

the

premium, on Special High

points to the New York basis.

President
ment

Truman's

/.

;

appoint¬

of former Democratic

Grade in most instances

Rep¬

resentative Emmet O'Neal of Ken¬

tucky
as
Ambassador i < to
the
Philippines was announced, at the
President's

headquar¬
City, M0., on May
22; the nomination \yas ireceiyed
by the U. S. Senate on May^28.
ters in

Mr.

temporary

Kansas

O'Neal,

a

lawyer, whose'nom¬
expected, if

ination has long been

approved by the Senate will suc¬
ceed Paul V. McNutt, this: coynw
try's first Ambassador to the bieiy
republic.
Joaquin
M.
Elizalde,
Philippine
Ambassador
to
the
United
States, was reported ill
Associated Press Kansas City ad¬

vices to have termed' ME

pound.

Quotations for zinc are for ordinary Prime Western brands. Contract prices for
High-grade zinc delivered in the East and Middle West in nearly all instances com¬
mand a premium of lc per pound over the current' market for Prime Western but
not less than lc over the "E. & M.-J/* .average* foryPrime Western for the previous

fuel oil




and

ingots

0.225c

of

& M. M.'s" export quotation for copper

J. M.

market

open

that is,

with the destination, the
Atlantic seaboard. Delivered
pound above the refinery basis.

delivery

at refineries on
per

on

prompt and future

79.9

L ^Incliides' \
—,unfinished gasoline stocks of 8,454,000
gaialine

tin

the

delivered

on

cash, New York or St. Louis, as

lead

23.675c;
14.800c;

10.500c; and silver, 72.750c.

quotations

markets, based

Copper,

In

ended May 24 are: Domestic

f.o.b. refinery, 22.171c; export copper f.o.b. refinery,
tin, 80.000c; New York lead, 15.000c; St. Louis lead,

84.6

86.9

Silver
The

Philippine Post

11

4,867

con¬

*

10.500

14.800

15.000

80.000

23.675

139

88.6

spot

y

O'Neal Named to

71.5

of,M. basis

basis May

80.000

23.675

88.0

17, 1947-

**

'

10.500

*

25.3

1947-

r''

10.500

15.000

14.800

...

May 27—

S.—B. of M.

basis May 24,

on

to $87 per flask.

^

•

$1,440.

10.500

14.800

prices in New England average 0.275c

Mt.

Total U.

*

by the Trust at the close of the
quarter was $5,928,294."

14.800

15.000

4,808

961

—

Zinc

15.000

1.017

866

California

*

10.500

80.000

to the basis of

3,589

Mt.—

Quotations "

tinued at $84

St. Louis-

80.000

2,381

87.9

Rocky

.

80.000

230

89.2

60.8

Mexico

to

sufficed

14.800

23.675

St.

835

102.0

New

have

sources

St. Louis

23.675

Straits

364

Other

various

New York

23.675

copper

180

Rocky

silver, but, with buying restricted,
chiefly by mercurial houses, of¬
ferings of scattered
lots from

New York

22.425

Oil

1,160

No. La.

Lead

Straits Tin,

Exp. Refy.

21.225

Oil

69.6

_l

Coast

QUOTATIONS)

J."

M.

22.325

of

96.4

Texas

Gulf

&

23

Fuel

94.5

Inland

("E.

METALS

22

Resid.

Louisiana Gulf Coast-

Texas

OF

May

Fuel

80.1

—

asked

has

May

& Dist.

100.0

1

to speak of
in quick¬

locations

15.000

Gas, Oil

85.8

No.

evidence

Army,

Appalachian—
District

pressure

in

_

99.4:

Coast

selling
been

"Among recipients of larger al¬
were
Community Serv¬

'.

Congress to extend tin control for

Mines basis

SGasoline tFinished
Product'n
and
tStocks

% Op-

Daily

plus

,

Truman

President

York,
Secondary

14.800, St. Louis.

May 26
totals

Quotations

—Electrolytic Copper—

(Figures in thousands of barrels of 42 gallons each)

Figures

sell.

to

1

three months of last year.

of WO 3. '

metal that pro¬

continued firm at 150, New
and

Producers.

OF

GASOLINE; STOCKS OF FINISHED
AND UNFINISHED GASOLINE, KEROSINE, GAS OIL AND DISTILLATE
FUEL AND RESIDUAL FUEL OIL, WEEK ENDED MAY
24, 1947

East

cared

ducers

total- equivalent to 4 days shutdown time during the calendar month.

a

§Recommendation
CRUDE

exemptions

were

imme¬

Tungsten ore quotations in the
United States were firm last week

primary lead was con¬
cerned, consumers last week ab¬
of the

Effective

ores.

diately, the ore \yill be sold in the
United Kingdom at prices" related
to current world prices at time

■

Includes

Ministry of Supply

announced

as

sorbed all

quarter.
/'■/,

Lead

So far

tOklahoma, Kansas, Nebraska figures

slab zinc; of

per

crude

new

exported 43,421 tons

which 16,755 tons
was
consigned
to
the k United
States.
Total exports from Can¬
ada in 1946 averaged 36,224 tons

ex¬

"in bond"

No
has

possible

The British

treated

reports. Consum¬

to
89,244 tons, which
with 85,592 tons a month

1947 Canada

the

granted to

continued.

be

99%

(guaranteed

Quicksilver

unknown

During the first three months of

port foreign copper refined in, this
country, the Office of Interna¬
tional Trade announced May ;26.
Procedure that applied to metal
formerly

1OV40, Gulf ports.

previous.

New York.
Licenses will be

tin

tives states would like to

amounted

.1

However,

Prime

Monsanto

compares

price on foreign business held to
the equivalent of 233A0, f. a. s.

pointed out by

as

amount

produced.

tThis

metal.

acquiring

Chinese

minimum) 78.900 per pound.

interest for

of

29,100

—

5,024,850

(included above)

Bureau

are

upon

50

900

—

919,200

4,871,000

••Pennsylvania Grade
based

§846,500

875,000

condensate

371,300

90,900

May 28—

Bureau of Mines

Foreign buyers of copper were
confused over price developments
here and showed less interest in

74,400

Mexico—Other—}

New

Products held to the old basis.

2,100

.

80.000
80.000
80.000
80.000

May 27

tion for silver
were

ers' stocks at the end of February

on

79,850

86,000

—„

Alabama

prices

291,450

413,350

May 24

80.000
80.000
80.000
80.000
80.000
80.000

80.000
80.000
80.000
80.000
80.000
80.000

80.000

May 26

July

June

May

80.000

May 23

slab zinc in
67,773
tons,
against 81,769 tons in January, the

day.

97,800

250

250

—

shipment, in cents per pound, was
nominally as follows:

Consumption of
February
totaled

Chase Brass &
Copper and Phelps Dodge Copper

the following

315,550

97,800

—

3i6,000

Louisiana

Coastal

2,114,800

ioy20, East St.

unauthorized, strike.

an

cover

advanced

Scovill

and
Total

to

con¬

electrolytic zinc
refinery of the' American Zinc,
Lead
&
Smelting Co. resumed
operations on May 24 after a twoweeks':, suspension resulting from

in-:
creased costs of copper, labor, and
supplies. Revere Copper & Brass
prices

on

The' price situation here was
unchanged., Straits quality tin for

.

moderated

foreign-origin

Western at

ing the rise in the cost of copper
to the company to approximately
230 per pound.
Later that day
American
Brass
advanced
its

38.300

of

sellers

wire had been
pound, reflect¬

per

zinc

Louis, for Prime, Western.
In the export market there

the

& Cable announced that its

1V20

vious.

siderably last week, but the price

price
domestic
market during the week ended
May 28 was 22.1040, f. o. b. re¬
finery,
which
compares
with
22.1380 in the previous week. '-■[
Early on May 26, Anaconda

increased

April 30 totaled 34,309 long tons,
against 38,801 tons a month pre¬

state.

Zinc

'

for

remained steady: at

The "E. & M. J." average

copper

antimony, he said.
^
Stocks of tin (pig tin and tin
in concentrates) in the hands Qf
the Office of Metals Reserve on

.

between, particularly since
May 26.'
,/■
: v -

for

essential

keep the market in an unsettled

.

;L

Call

and far

prices

'

..

.

stated that inde¬

in

Re¬

moder¬

,

April.

at 240 were few

sold

increased

ately to 44,834 tons; Metals Re¬
serve allocated 8,230 tons of lead
to
.domestic
consumers
during

producer
continued to sell copper at 211/20,
Valley, and foreign metal again
brought 240.
In more than one

copper

preceding month.

finers' ^stocks

domestic

was

Sta¬

Metal

Output in" March came to

tons in the

quotation, the situation un¬
derwent little change last week.

pendent buyers

of

Bureau

51,239 tons.
Domestic refineries
shipped 50,568 tons of lead to con¬
sumers
in
April,against 52,465

M. J."

leading

June 30, 1947. Allo¬
priority powers are
in
tin, tin-plate, and
.

.

basis of the "E.

the

on

monthly

total
1944, according to the

since March

as

Except that several sellers were
disposed to offer copper to con¬

of

highest

the

tons,

follows:

Copper

for

April placed production at 53,424

an¬

present legisla¬

as

year,

tion expires
cation
and

May 22

statistics

refined-lead

The

The publication fur¬

on

of

Sales

consumers,

allocate tin and antimony

Wire

Texas—

District

lead

in

changed.

direction it

49,200

1,250

500

47,000

Florida

••West

The

■

1947

49,200

York-Penna

••New

stated: "The copper market remained divided on the question of
prices, and, though several fabricators raised their quotation to the
basis of roughly 23c per pound, Valley, virtually no progress was
made last week in eliminating the spread.
If anything the under¬
tone appeared to be easier because of increasing consumer resistance.

The

IN BARRELS)

(FIGURES

PRODUCTION

OIL

CRUDE

Markets," in its issue of May 29,

"E. & M. J. Metal and Mineral

President Truman has asked Con¬

further adds:

The Institute's statement

Metals—Spread in Copper Price
Continues—Zinc Trade Quiet—Silver Drops

Institute estimates that the daily av¬

American Petroleum

The

Non -Ferrous

O'Neal

"the ideal man" for

the Philippine
assignment.
"His wide acquaint¬
ance
with members of Congress
„

will .prove a

great help in expe¬

diting Philippine prograifts here,'*
Mr. Elizalde is

quoted

as

saying.

^Volume

165

Number 4600

THE COMMERCIAL 8c FINANCIAL
CHRONICLE

(3043)

Revenue Freight Gar Loadings During Week
:
Ended May 24,1947, Increased 2,397 Gars
Loading of revenue freight for the week ended May 24,, 1947
totaled 890,605 cars, the Association of American Railroads announced
on
May 29^,This was an increase of 319,132 cars or 55.8% above the
(corresponding week; in 1946 when railroads were shut down for
2V2 days due to a strike of certain
-■workers, and an increase of 7,852
cars

0.9% above the

or

same

week in

1945.

Atl.

&

W.

Atlantic

P.—W.

Coast

Central

P

of

Coal loading amounted to
188,721 cars, a decrease of 698 cars
below the preceding week, but an increase of
68^355 cars above the
corresponding week in 1946.

Grain

crease
9,751

and

of

grain products, loading totaled 44,656 cars, an in¬
cars above the preceding week and an increase of

2,370

the corresponding week in 1946. - In the Western
grain and grain products loading for the week of
May 24 totaled 28,668 cars, an increase of 1,372 cars above the .pre¬
ceding week and an increase of 4,54b cars above the corresponding

alone,

in

Week

1946., '

/

,

"

■«"

Livestock

loading amounted to 12,194 cars a decrease of 1,031
cars below the preceding, week but an increase of
2,045 cars above
the corresponding week in 1946.
In the Western Districts alonb
loading of livestock for the week of May 24 totaled 8,940 cars, a de¬
of 9.41

crease

below the preceding week, but
corresponding week in 1946.

cars

above the

cars

Northern

408

East

2,601

3,707

4,423

2,877

415

522

1,459

984

1,230

1,686

310

3,870

1,996

272

221

192

198

105

75

123

589

642

1,701

Coast

995

1,232

1,458

868

102

51

54

114

71

1,164

745

1,229

2,167

1,040

457

Macon, Dublin & Savannah
Mississippi Central
Nashville, Chattanooga & St.

3,938

5,750

3,864

2,736

20,030

30,675

System__________

235

4,892
20,343

Ohio

Central

14,843

9,502

16,884

29,441
27,450

9,970

6,002

243

420

180

814

.427

.

459

446

211

3,545

4,091

2,597

811

1,107

446

1,728

337

418

1,560

Richmond, Fred. & Potomac

513

685

11.808
Southern

8,338
8,351

25,608

23,915

5,065
16,775

544

598

826

565

Winston-Salem Southbound.

increase of .1,497

an

'J

Forest

products loading totaled 45,85l cars,; a decrease of 2,505
cars below, the preceding
week but .an. increase of 13,457 cars abOvO
the corresponding week in 1946. ]■>r;
v-v

120.

132,808

Northwestern

140

888

836

130,192

91,472

105,576

69,815

Chicago & North Western
Chicago Great Western
Chicago, Milw., St. P. & Pac
Chicago, St. Paul, Minn. A Omaha

corresponding week in 1946.,

•

14,289-

cars, an increase of one car
increase of 10,670 cars above, the

an

•\

V

in

1945, except the Centralwestern

and

Weeks

Four

Weeks

of
of

Weeks

•Four

January—

Northern

Spokane

March—

3,052,487'

of

Mav

10—

4,170,420

3,982,240
2,604,049

4,022.088

3,232,947

!—

of April——
May 3_————

of

—"—

Weeks

882,684

671,311

866,034

3,377,335

884,242

May 24*—,

684,942

838.764

888,208

—.

May 17—;

of

3,003,655

2,866,876

;—

Week

Week

2.883,863

688,210

868.914:

890,605

————-—

571,473

17,296,701

882,753

14,952,964

-

16,912,030

Salt

on

1(748

14,305

21,866

10,997

compared with

6,680

2,378

3,517

3,862

2,444

13,473

25,386

355

172

March

720

871

510

391

4,231

9,102

quarter's

11,154

5,465

Illinois

Southern

Union Pacific

185

82

$477,000,000

was

4,167

curities and

$305,000,000 in

450

173

2,333

112

2,194

2,618

1,421

4,929.

7,154

3,589

2,641

7,259

11,616

4,800,

3,868

<

105

281

1,919

2,566

745.

299

2,968

1,846

Western

.

,

,,

.

.

LOADED

" " (NUMBER

,

OF

AND

RECEIVED

FROM

Ann

1947

Arbor

Bangor

:

Boston

&

Maine—

—

Central

288

1,002

392

3

8

0

0

33,854

21,267

33,077

II,298

6,369

129

0

342

349

0

14,227

9,408

15,174

13,983

8,827

466

5

9

2,335

3,709

1,863

;

964

557,
1,412

1,985

.87,565,

-

-

132,272-

82,173-—

51,032

Coast

Island

305

O.

A

G.-M.

V.-O.

1,176

1,389

794

4,214

2,948

15,600

II,824

17,549

15,179

11,092

119

129

196

173

6,589

10*138

8,038

4,547

424

333

Lines

Pacific

St. Louis-San Francisco
St.
Louis-Southwestern

1,089

2,449

1,3911

41

40

36

1,140

2,383

1,334

433

2,931

2,000

12.756

15,415

10,573

6,964

9,619

5,568

281

188

1,345

'

Texas

4.141

3,109

161

2,223

Pacific

125

9,414

A

2,518

3,678

5,230

3,099

6,509

11,707

5,837

3,275

5,857

4,216

5.992

7,092

4,811

110

83

118

54

1,190

949

8,558

6,821

8.050

8,001

5,035

.1,974

2,491

3,332

35

38

17,

13

47,208

77,610

62,054

42,387

Falls A Southern
Weatherford M. W. A N. W

Total

279

1,148

2,776

24

•Included

In

Denver

&

Rio

Grande

Western

tlncludes, Kansas,
Ada-Atoka

Oklahoma & Gulf Ry.,
§Strike.
^Abandoned.

Ry.

RR.

Midland Valley Ry. and Oklahoma City-

32,599

52,285

50,949

28,957

10,013

7,323

10,660

14,086

9,632

York

New

Ontario

&

Western

"

1,001

823

1,207

2,455

Louis

7,616

4,072

6,829

Y., Susquehanna St Western
Pittsburgh & Lake Erie

14,783

8,469

425

258

437

1,281

1,365

6,506

3,091

Fere

8,222

11,810

4,961

6,489

4,081

5,511

6,793

4,127

1,286

831

943

63

33

If

233

360

0

149

1,001

858

Chicago & St.

N.

—

Marquette

Pittsburg

Shajvmut

&

Pittsburg, Shawmut & Northern
Pittsburgh & West Virginia
Rutland

!

)

1,201

2,608

1,171

405

Woha ch

347

390

1,155

834

6,338

—

Wheeling & Lake Erie
'

-

4,301

6,173

11,483

7,130

5,719

I

Total

169,224

3,555

111,165,

6,488

4,011

3,016

163,604

203,524

123,952

figures received by us from the National
Paperboard Association, Chicago, 111., in relation to
activity in the
paperboard industry.
The

members

of

this

Cambria

&

Central RR.

•

1,404

represent

industry, and its

figures

are

advanced to equal

706

45.601

23,812

5,533

2,629

1,590

16,464
1,003

3

1,620

3

11

6,639

4,477

7,029

15,410

438

315

10,795

*

25

78

26

—

245

449

180

10

8

6,905

of Nfew Jersey—
j.

&

Pennsylvania.

-onler

ng

769

30,107

Indiana

Corhwall:; 4.!
umberland

38S

45.955

•

yalley—
Island..——

132

—

1,259

,

Perm-Reading Seashore Lines

3,284

100%,

so

83%

of

the

total

that they represent the total

63

113

8

1,139

1,879

3,858

3,202

1,757

-

6

Orders

Feb.

8

Mar.

1,278

1,785
87,690

58,970

1,360
43,672

15,292

24,861

19,680

3,350

17,493

19,353

7,952

4,216

3,805

2,890

3,500

11,484

8,191

Apr.

105,827

Apr.
Apr.

Apr.

26_.

193,495

108,749

190,374

152,236

Pocahontas District—
sapeake A- OhioNorfolk A Western—.

5,091

————

25,253
19,159
4,232

iL-L—

■lrginlan' j, 1
Total

36,316
24,459

65.866.

■tflrr^hr
■

i:

ini:L'quMI

CO!T

::

r-.jJixdJ'H




.

„

t

'

48,644

29,560

15,690

9,485

21,679

6,899

4,196

1,980

971

4,804.,
56,043

24,569-

14,652

579,562

Percent of Activity
Current Cumulative
102

99

181,017

599,009

104

99

178,458

589,544

102

Trading With the Enemy
claims, the Attorney
General explained.
The statute
also provides generally, Mr. Clark
continued, that claimants must be
U.

S.

Philippine

or

residents
since

of

Pearl

the

citizens,

United

Harbor.

or

States

Claims

also

be filed by corporations or¬
ganized under Federal, State, Ter¬
ritorial o.r Philippine law.

may

"Information about debtors and
forms necessary for

filing claims
be obtained from the Office
Property, Department of
Justice, Washington 25, D. C., or

may

the

from

office

of

any

United

According to the National Lum¬

177,282

565,571

103

181,709

574,856

102

101

179,819

614,471
595,648

104

101

176,918

5.74,090

103

160,450

102

1

:

' 180,729

549,774

102

228,306

181,064

177,478
180,227

597,373
569,809
560,739
534,297

102

165,902

170,806

'

153,415

—^

232,682

582,603

J*
loe

96

101

102

101

190

;oi

102

m

159.888

-

-

orders

179,059

560.526

101

m

153,869

—

I

NOTES—Unfilled

181,063

101

179,155
179,001

532,231'

102

101

507,171

101

100

148,740
for the

prior week,

plus

orders

received^ less production

do. not: necessarily equal the unfilled orders at the
close., Compensation for
delinquent,
reports. orH«»-« made tor or filled from stock, and other
items made
necessary adjust¬
ment* of unfilled order*.

the

to

Association,

National

Trade Barometer

re¬

Lumber

11.8%

were

be¬

low production for the week end¬

ing

May

week

24,

new

1947.

orders

14.4%

were

In
of

below

the

same

these

mills

production.

Unfilled order files of the report-1

mills

amounted to 69%
of
reporting softwood

For

mills, unfilled orders are equiva¬
lent to 25 days' production at the
current rate, and gross stocks are
equivalent to 34 days' production.
For the
of

.year-to-date, shipments
reporting identical mills were

1*1

179,025

139.487

5„;

Manufacturers

lumber shipments of 418 mills

100

237,292
163,207

Mar. 29

ber

100

155,794

Mar. 15
Mar. 22

May
3
May
9
May 16
May 23

Tons

192,670

;

12
19

Total

179,347

Remaining

147,458

8—

10,552

Production

169,624

1

Mar.

49,539

...

der the

stocks.

202,189

Feb. 22-

14,712

.

of persons or firms
property has been taken
by the U. S. Government un¬

Act may file

ing
MILL ACTIVITY

Unfilled Orders
Tons

204,033

Feb. 15.

89,219

.

Tons

1

.

^

_

Received

1947—Week Ended
Feb.

.

snnsylvani^ System,
Reading
Co.„.
Union (Pittsburgh)
Western Mainland

■

REPORT—ORDERS, PRODUCTION,

Period

1,834

.

property

property prior

to Jan. 1, 1947.
The advices from
the Department of Justice added:

porting

Association

program includes a statement each week from each
member of the orders and
production, and also a figure which indi¬
cates the activity of the mill
based on the time
operated.
These

STATISTICAL
671

Ohio
Bessemer & Lake Erie
&

against persons whose
seized as alien

was

11.8% Below Production

industry.
Baltimore

through Sept. 2, 1947 of the
deadline
for
filing debt claims

We give herewith latest

Allegheny District—
Akron, Canton &' Youngstown.,

May 23 the exten¬

on

sion

Weekly Lumber Shipments

Weekly Statistics of Paperboard Industry

2,225

New York,

Attorney General Tom C. Clark
announced

States Attorney."

NOTE—Previous year's figures revised.

7

52,646

& Hartford

File

to

Alien Property Claims

161

2,696

New York Central Lines

Y., N. H.

on

of Alien

1,824

N.

j

the

Extend Time

52

25

Pacific

Orleans

1,86<-

9,431

62,643

New

Wichita

1,633

2,256

3,731

A

A

Texas

9,71.4
5,371

,

Acme

294

736

2,753

3,968

1,039

415

7.219

27

185

3,754

4,308

Missouri-Kansas-Texas
Missouri

839

1,876

2,383

3,875

5,460

907

1,155

3,601

2,506

2.991

Missouri A Arkansas

Quanah

223

516

6,767

I,543

1,581

City

7,682

2,056

340

4,347.

2,127

C.-A.-A

317

4,776

Lines

187

1,290

$43,874,000,000.

increase of $561,00Q>quarter and $3,204,-

000,000 over the aggregate
March 31 last year."

over

159

.

were

an

"Creditors

§

1,617

31

was

in

whose

District—

1,879

9,304

Montour

143

625

25

Pacific

000

426

117

814

1,396
§

'

8,389

579

1,462

499

302

12,486
4,723

—,

1,073

1,520

260

1,348

Monongahela

833

1,507

1,277

237

Central.—

914

2,381

970

Maine

1,882

1,785

403

;

1,047

3,738

2,446

:

1,426

2,166

3,715

225

Western

1,127

1,434

5,372

7,768

Trunk

1,046

1,621

5.318

Grand

*

1,105

2,375

278

Lehigh &
Hudson River
Lehigh A New England
Lehigh Valley

*.

510

5,756

—1

»

1,997

2,277

3,611

Erie

2,599

3,675

2,882

16

—

4,884

2.740

Southern

1946

and

1,119

3.741

799

8,482

1,079

11,812

Line.

I,733

2,194

6,992

795

Arkansas

285

Shore

615

3,202

10,824
12,585,

Madison

7,705

Toledo

441

19,023

A

5,406

&

13,315

A

Delaware, Lackawanna A Western—

Detroit

3,279

9,167
1,488

129,665-

Kansas

Delaware & Hudson

Detroit, Toledo & Ironton

1,395

2,387

7,089

Detroit A Mackinac

4

2,734

City

5,827

—

This

98

14,078

«

1,472

Vermont

364

Litchfield

1,044

Indiana

3

Louisiana

1947

government

$1,601,000,000 for the
Investment holdings of
mortgages, and securities on

March

3,430

Western.

7,452

—

.Chicago, Indianapolis A Louisville—
Central

214

1,380

_—-

1945

of

to

1,787

'Received from

1946

284

Aroostook

A

types

7,263

10,330'
3,276

—Connections—

Total Revenues

District—

3,581

27,5701

12,652

(Pacific).
A Western

Southwestern

tK.

"Freight Loaded
Eastern

1,983

20,386

International-Great Northern

'

.

18,838

.463

Total

Gulf

CONNECTIONS

Total Loads

Railroads

"Purchases

.

WEEK ENDED MAY 24)

CARS

40,079

1,334

Burlington-Rock
REVENUE FREIGHT

66,310;

se¬

mort¬

foreign securities in the amount of
$419,000,000 during the first quar¬
ter brought total new investments'
in mortgages and securities of all

all

The

following table is a summary of freight carloadings for
the separate railroads and systems for the week ended
May 24, 1947.
During this period 119 roads reported gains over the week ended
May 25, 1946..
"

132,658

3,038

Union

:

"

76,670,

in corporate

gages.

54

1,220

the

holdings,

899

24,556

System

Utah

in

quarter.

Pacific

Toledo, Peoria

Of

year.

6,436

136,904

Pacific

Pekin

last

412

193:

Northern

A

of

increase

427

Lake

Western

Peoria

and

31

23,218

2,704

Missouri-Illinois
North

1

mortgages

$12,327,000,000,
$19,545,000,000 on
$17,244,000,000
on

368

7,263

Terminal

Nevada

Jan.

and

cor¬

were

295

558

Denver

March 31

was

of

11,703

2,495

Seattle

Grande

A

securities

8,351

the

investments

Holdings

3,597-

3,249

Chicago A Eastern Illinois
Rio

such

in

The ag¬

679

Bingham & Garfield
Chicago, Burlington & Quincy
Chicago & Illinois Midland
Chicago, Rock Island & Pacific——

A

of

acquired

516

Top, A Santa Fe System

&

gregate

estate

22,352

—

Worth

$562,000,000.

13,483

10,872
A

were

•

of

came

real

of

2,482

International

Spokane, Portland

Fort

and

mortgages

9,337.

Pacific..

Denver

1945

$620,000,000,

3,723
26,683.

Minneapolis & St. Louis
MinmV St. Paul & S. S. M

said

purchases

corporate bonds and stocks
to

19,233

Dodge, Des Moines & South

Denver

1946

Insurance

quarter's

1,439

Colorado A Southern

3,179,198

——

Week

Week of

same

3,168,397

February—*

of

the

Southwestern.

'1947
Four

Five

corresponding

compared with

week

"

;

.

All districts reported increases
compared with the
in 1946 and all reported increases

week

''The

22,776

Green Bay St Western
Lake Superior & Ishpeming

Atch.

Life

12,153

Central Western District—

preceding week and

of

May 30.
"
The Institute advices also said:

on

2,418

Great Northern

corresponding week in 1946.
loading amounted to

Institute

732

Total

Coke

$782,000,000, after taking into account
refundings
and
maturities, the

20,907

Duluth, Missabe A Iron Range
Duluth, South Shore & Atlantic
Elgin, Joliet & Eastern

Ore loading amounted to 79,349 cars an increase of
6,752 cars
above the preceding week and an increase of
50,708 cars above-the

above the

in the national
economy by

porate

-

?*v/

through these investments

$1,182,000,000.

District

.

.

their policy holder funds

at work

amount

122

Total

Ft.

companies in¬

creased

6,931

10,993

18,250

740

Central

8,980

27,034

System

Tennessee

rities and real estate
mortgages in
i;he first quarter of this
year, the
U. S. life insurance

880

310

With the purchase of well
over
of corporate secu¬

$1 billion worth

960

453

Northern

1,034

302

2,425

1,146

Southern

220

230

3,420

L

Increased Funds

5,609

Midland

Mobile &

Piedmont

1,262

8,094

2,179

Louisville A Nashville

Norfolk

96

2,182

*

Georgia A Florida
Illinois

360

887

13,379

477

Georgia
Gulf

490

571

10,870

Carolina

Southern

Life Ins. Cos.

1946

800

Ala

Columbus & Greenville
A

281

1947

3,812

of

Clinchfleld
Durham

Received from
—Connections—

1945

13,741

RR.

Line

Charleston & Western

Florida

1946.

above

cars

Districts

&

Georgia

...

Loading of merchandise less than carload freight totaled 119,626
cars, a decrease of 1,416 cars below the preceding week, but an in¬
crease of
27,898 cars above the corresponding week in 1946.

1947

Tennessee

Gainesville

,

Loading of revenue freight for the week of May 24 increased
2,397 cars or 0.3% above the preceding week:
Miscellaneous freight -loading totaled 385,919 cars, a decrease of
1,076 cars below the preceding week, but an increase of 136,248 cars
above the corresponding week in 1946.

Total Revenues

Freight Loaded

Southern Distrietr-

Alabama,

15

Total Loads

Railroads

,

7.7%
were

above
9.6%

production;

orders

above production.

Compared to the average cor¬
responding week of 1935-39, pro¬
duction
of reporting mills
was
23.7%
above;
shipments
were
11.3% above; orders were 12.1%,
above.
Compared to tM (.coxrpsponding week in 1946%Jpf;oduction ot reporting mills ,was 5.2%*:
above; shipments, were 6.2% ;be»^
low; and new orders were 6.1%;!
below.

16

THE COMMERCIAL

(3044)

& FINANCIAL

Thursday, June 5, 1943J

CHRONICLE

J

Man¬
plan department,
and
J.
M.
Palframan,
Seniot!
Credit Analyst of the Credit De¬

Ex-President
*

—

ing

Jesse P

rency

event, if it is to be con¬
tinued, it should be returned to its
original purpose and now be lim¬

stated

mittee,

continu

a n c e

operations

of the Recon-

set

up

during

his

tion

Hoover

Herbert

Presi¬

as

with all loans

placed upon its

be

Because

limitation might well

authority, such

Assistant

elected

were

institution on May
according to an announcement
by Robert C. Downie, President.
The Pittsburgh "Post Gazette," reCashiers of the
26,

Col.

for 25
of the
Bankers Trust Company of New
York and more recently financial
counselor to the bank and other
financial and industrial
institu¬
a

throughout the nation, died
after a brief illness at

tions
on

Hv McGee,
Vice-President

Hugh

years

June 2

the

North

Community

Country

of plans to increase
of the Schenectady
Trust Co., of Schenectady, N. Y.,
Approval

capital

the

porting this, said:
Mr. Gormly began his bank-*

$1,000,000, consisting of 10,000 shares of the par value of $100

from

ing career with the PeoplesPittsburgh Trust Co. in Novem¬

$1,300,000, .consisting of
13,000 shares of the par value of
$100 each, was given by the State
Banking Department on May 29.

each, to

ber, 1925.
Mr. Palframan,

throughout

terprises
In

1944 he

was

nation'

named Chairman
of a

Committee

Credit

the

of

the

It

announced

was

on

May

27

formerly witli
Bank of Canada,

Royal

the

department of

joined the credit
Co. in

December, 1945.

Workingmans

The

established

-

H

Savings

of Pittsburgh,

& Trust Co.,

Bank
has

Trust

Peoples-Pittsburgh

the

countries or persons.
justified in the past or

purse.
A further

Administra¬
dent.

burgh,

Hospital, Glen Cove, L. I. He was
61 years old.
A pioneer in loans
The Keansburg National Bank,
Whether
to small business, Col. McGee was of Keansburg, N. J., has increased
not,
the continuation of these active
during recent years in the its capital from $90,000 to $100,000,
kinds of governmental loans lea<3s
establishment of regional credit
by the sale of $10,000 of new
into
a
circumvention of Con¬
pools to permit individual banks stock.
The increase became ef¬
gressional control of the national to underwrite loans to local en¬
fective May 19.

which

was

Companies

foreign

to

Cor¬

poration,
an
institu¬
tion

private business

prohibited, together

struction
Finance

loans to

self-liquidating loans for pub¬
lic works.
Except for self-liqui
dating works, all loans to gov¬
ernmental
agencies
should be

and

the

regarding

to

ited

views

his

Trust

partment of the Peoples First Na¬
tional Bank & Trust Co. of Pitts¬

of the

In any

Cur¬
Com¬

,

to an

Bank¬

and

of

Herbert Hoover, in a reply, dated May 30,
t
™
Wolcott (R.-Mich.), Chairman

Rep.

from

inquiry
House

Items About

founded in his Adminis¬
only private emergency

public works.

loans and loans for self-liquidating

of the time

ager

Proposes RFC Reforms

Wolcott institution,
tration, should be restricted to making

Writes Congressman

Gormly, Assistant

W.

T.

Hoover

a consumer

credit

department, Jay D. Swigart, Pres¬
ident, announced.
On May 26 if
was
made known in the Pitts¬

that Stanley W. Cousley, Senior
burgh "Post-Gazette," which also
$100,000,000 New York bank credit
Vice-President
of the Fidelitying loans should present evidence
said:
group, the aim of which was to
that they have exhausted the pos¬
Philadelphia Trust Co., would be¬
S. Frank Cole, formerly Ford
foster
the
expansion of small
jpublish below the complete text of
come President of the institution
sibility of securing credit from business organizations. He was a
sales director with Universalhis letter to Rep. Wolcott:
on
June
1.
The announcement
private institutions. In this same frequent contributor to profes¬
CIT
Credit Corporation, was |
The Hon. Jesse P. Wolcott,
direction,
a
further
provision sional journals and spoke at credit was made by the board of di¬
named to manage the new divi¬
Chairman, House Committee on
might be made that loans in the meetings and forums in all parts rectors of the bank, according to
sion.
i|
Banking and Currency,
the Philadelphia "Inquirer," which
future should be at a rate of in¬
of the United States.
House of Representatives,
stated that Mr. Cousley will suc¬
terest 3% or 4% above the rate
Col. McGee was born in 1885 in
The Toledo Trust Co., of To¬
Washington, D. C.
ceed
Marshall S. Morgan, who
of governments of the same period
North Dakota and was graduated
is retiring as an officer, but will ledo, O., will open a branch office* I
as a check upon using the govern¬
from the U. S. Military Academy
Dear Mr. Chairman:
at Detroit and West Central Ave¬
continue as a director of the bank.
ment for cheap money.
at West Point in 1909.
He served
I have your kind telegram ask¬
In part, the "Inquirer" contin¬ nues, it was announced on May 28
As the economic situation will
and
was
twice wounded in the
ing for my views on "whether
ued:
by Jzhn T. Rohr, President, and
continue to be uncertain for the
the RFC should be continued and
Philippine Insurrection and with
next few years, it would be well the A. E. F. as Chief of Staff of
Mr. Morgan has been with the reported by the Toledo "Blade/* |
within what limitations its opera¬

weight of authority of Mr.
Hoover's views in this matter, we
of the

tion should be
I

the ac¬
this institution for the

of

tions

15

past
based

two or three years

institution for
in this limited

field.

on

of great service
economic emergency

institution

was

during the
of 1931-32.

v

during eco¬

business except
nomic emergencies.

the

and

tragic

cycle
and

boom

of

bust."

petition
request e d
Chair¬

Vice

-

man

Jesse

P.

Bowles

Stability
by

Bowles and
Americans for

Chester

by

sponsored

Declaring that their appeal was
"partisan measure," the signers
asserted that if the conclusions
no

by Bowles and the 10
nationally-known economists who
collaborated
on
the report, are
reached

correct, "there is no more impor¬
tant

problem before the Con¬
and the nation."
know," the House mem¬
declared, "that if the Con¬

"We

bers

to its responsibility,
it is not necessary for this country
gress

lives

up

to go

through the old and tragic
cycle of boom and bust."
"The issue clearly lies before
this
session
of
Congress,"
the
group

The

added.
Congressmen expressed "in¬

creasing

the rapidly

concern over

mounting price level and the at¬

tending

decline
observed

the

that

ADA

"a concrete

pro¬

of legislative and executive

cratic

Americans

Action

"Observations"

on

the Re¬

For

•Editorial comment

of

Albert

Gore,

Mike

Demo¬

will

be

on

page

issue.—Ed.




found

5

in

of this

Mansf ield, Montana;

George Smathers, Florida; Martin

elected

was

a

departments of the bank and
has been in charge of both the
real estate and the trust depart¬
ments.
He was elected a VicePresident in 1929 and to the
board of directors in 1941.
He
was made Senior Vice-President
in 1945.
He is a member of the
Pennsylvania

Brooks

William

setts;

Karsten,

Jr.,

Dawson,

Missouri; Porter

Virginia; Chet Holi-

field, California; John A. Blatnik,

Minnesota;

Michael

A.

Feighan,

Ohio; John R. Murdock, Arizona;

McCormack, Massachusetts;

Thomas J.

old
ard
son

O'Brien, Illinois; Har¬

Donahue, Massachusetts; Rich¬
F.

Harless, Arizona; Hender¬

Lanham, Georgia.

Sterling National
of New York,
has been elected a director of the
bank.
He is president of Essex
House Hotel.
Mr. Golding was
Bank

the

of

& Trust Co.

Bar, the Council

of Administration of the Penn¬

Council

Executive

of the
Association

Bankers

American

Relations Committee

lic

Pub¬

and

Publicity

the

and

Association,

Bankers

sylvania
the

life member¬
ship in the Reserve City Bankers.
Col. McGee was a trustee of the
Association of Graduates of the
U. S. Military Academy at West
Point, director of the Association
of Reserve City Bankers, member

ident

worked in

has

Cousley

Mr.

all

of the

Philadelphia Stock Exchange.
Mr.
Cousley
also
is a Past
President
and
a
member of
the
Executive
Committee of

Corporate Fiduciaries Asso¬
He serves as a director
of the Beneficial Saving Fund

the

(Local 96, United Office and Pro¬
Workers
of America,

fessional

CIO).

The affair will be held at

the Roof Garden

George,

of the Hotel St.

Candidates of
Trust Co. branches and

Brooklyn.

Brooklyn

departments will participate in a

judged by
Hollywood per¬

Beauty Contest to be
Broadway

and

sonalities.

"*

-

'1

of the branch willj
S. White, for more

Manager
Edward

be

10

than

Service

White's

operator

years

Bureau

in

ofj
the!

occupied;
branch Oct. 1.

building which will be

by the new
Louis

tant

R.

Snyder, now Assis¬

of the West To-j
will be assistant af |

Manager

ledo branch,

Detroit-Central.

increase

An

$50,000

of

in

the!

capital of the Overland National!
Bank of Grand Island, Neb., rais- i

$150,000„ji

ing it from $100,000 to
became effective on May 20, it is!

reported by the Office of
Comptroller of the Currency.
The
Bank

newly organized

thef

Riverside^

of Jacksonville, Fla., form¬

ally opened for business at River¬
side on May 29.
The bank, whicl

ciation.

recently received its charter froi
the
State Banking Department,

Society.

has

Archie
the

President of

Swift,

D.

Central-Penn National Bank

Philadelphia,
of the
on June 30, at
will be succeeded

of

Chairman
bank

will
become
board of the
which time he
in the Presi¬

bank, and A. G. Frampton

Bank of Philadelphia.

Bank

for

27

Federal Reserve

years,

was

a con¬

Julian

F. W.

Sr., James L. Ingram!
Workman, H. Terry!
Parker, Paul Smoak and Fuerif
Warren, Directors.

Catlin,

James

E.

Advancement

as a

M. Arnold
the

bank's

their

F.

Chairman

and

Gleedi

Pres'

the local promotions
Ransom, Trust Office*

at the bank's main office sincq

May, 1943, moved up to Vice
President,
while -Robert
M
Smith, of the Branch Credit!
Supervision
Department,
anq
-E.^T. Wickwire, assistant per-i
sonnel officer, advanced to asi

banking and credit devel¬
opments.
The election of Messrs. Swift
to

and Thomas

ident, respectively.
The Seattle "Times," in indicat¬
ing these bank changes, also said
in part:

speaker and writer on busi¬

Sienkiewicz

5

positions and
the
addition
o
Henry A. Frey, Jr., of New Yorl
City, to the main office staff, a:
an Assistant Vice-President, wer<
announced on May 28 by Lawrence,

ness,.

and

execuH

Bank, of Seattle, Wash., to highe:

He is known

posts occurred on May 29.

three

of

tives of the Seattle-First Nationa

Economic

sion of Congress.

banl

Presi¬

Brundick, Jr., Vice-Pres¬

Under

House

the

Fant,

ident, and B. P. Beville, Williai

Reno P.

the

E.

dent; J. E. Graves, Jr., Chair¬
man
of the board of directors;

Policy and Planning
Committee during the 79th ses¬

to

of

officials

Other

include

Post-War

sultant

willlf

be Cashier.

changes were

been with the

capital of $100,000 and sur¬

.

Department, will serve as Exec¬
utive
Vice-President
of
the

by C. A. Sienkiewicz, a
Vice-President of the Federal Re¬
dency
serve

a

and
undivided profits oi
$20,000.
In the Florida "TimesUnion" of May 29 it was stated:
E.
E.
Patterson,
a
formei
member of the State Banking

plus

The
announced pn May
30, it was noted in the Philadel¬
phia "Evening Bulletin" of that
graduated from Dartmouth Col¬
date, from which we also quote
lege in 1937. During World War II
the following:
he
served with the Army and
Mr. Swift, who entered the
upon
his release from military
banking business 55 years ago
service held the rank of Lieuten¬
as a clerk in the Ridgway Bank,
ant-Colonel.
Ridgway, Pa., came to CentralPenn in 1916 and was named
The Rockaway Park office of
President in 1929.
He is Chair¬
the Bank of the Manhattan Co. of
man
of
the
Clearing House
New York opened for business on
Committee of the Philadelphia
June 2 in its new locaton at 257
Clearing House Association and
Beach 116th Street.
a director of the Commonwealth
Title Co. of Philadelphia, Phila¬
delphia Suburban Transporta¬
Louis Armstrong and his or¬
tion Co., Philadelphia and West¬
chestra
will play
at the First
ern Railway,
Quaker 'City Fire
Annual Spring Dance and Party,
and Marine Insurance Co and
Friday night, June 6, sponsored by
the Bellevue-Stratford Hotel.
the Brooklyn Trust Co. Chapter
Mr.
Sienkiewicz,
who has
Illinois; of Financial Employees Guild

Olin E. Teague,
Hays, Arkansas;
Melvin Price,
Illinois; Otto E.
Passman, Louisiana; Mary T. Nor¬
ton, New Jersey;
Carl Albert,
Oklahoma;
Charles
B.
Deane,
North Carolina; Estes Kefauver,
Tennessee; Ray Madden, Indiana;
Arthur G. Klein, New York.
Cecil R. King, California;
Franck R. Havenner, California;
John A. Carroll, Colorado; Walter
B. Huber, Ohio; Francis E. Walter,
Pennsylvania; Thomas E. Morgan,
Pennsylvania;
Mike
Monroney,
Oklahoma; John E. Fog arty,
Rhode Island! John D. Dingell,
Michigan; Helen Gahagan Doug¬
las, California; John Lyle, Texas;
Antonio Fernandez, New Mexico;
Georgia Lush, New Mexico.
John
F.
Kennedy, Massachu¬

Gorski, Illinois;

John

port

Tennessee;

and

which added:

1937.

since

Tennessee;

Hardy,

report presents
gram

signing Con¬

follow:

Jackson,
Washington;
George P. Miller, California; Wal¬
ter K. Granger, Utah; J. Mercy

purchasing Frank

in

power."
They

made Assistant Treasurer

27 years and seryed as
and
as
President

director

a

recently elected to

Henry

Texas;

Democratic Action.*

gress

The names of the

Priest,

was

Frank
Buchanan, of the American Bankers Associa¬
Pennsylvania; Herman P. Eber- tion Post War Small Business
Joint
Com¬
harter, Pennsylvania; James W. Credit Commission, and served as
mittee to urge
"immed i a t e Trimble, Arkansas; Aime J. Fo- Chairman of the financial advisory
Rhode Island; Prince H. committee of the Committee for
hearings"
on rand,
Preston,
Jr.,
Georgia;
Wilbur Economic Development.
the recent re¬
Mills,
Arkansas;
John
Folger,
port
of
the
Committee on North Carolina; Herbert Bonner,
Jerrold R. Golding, Vice-Pres¬
Economic North Carolina.

Wolcott of the

headed

earnest consideration."

gressmen

The

Chester

which

action

he

merits prompt and

the <$>

"old

Colonel in 1919 to join the
Bankers Trust Company; in 1920
a

company

Bankers, he had been active in
both during recent years. He was

May 30, 1947.

boom-and-bust must be averted.

avert

War.

May 29 asked
prompt action

HERBERT HOOVER

WASHINGTON—A group of 52 Congressmen on
Joint House-Senate Economic Committee to take
to

World

first

the

Vice-President
in 1921.
Col. McGee retired from
the
bank
in
1946 following 27
years' service, following which he
maintained
offices at 44 Wall
Street and had since served as a
consultant to a number of banks,
industrial and utility companies as
a
counselor
specializing in fi¬
nancial advice.
A member of the
American Bankers Association and
the Association of Reserve City

Demand Action on Bowies-Ada Report
52 Congressmen agree

France during
He retired

the 77th Division in

as

provisions would tend to
get the institution out of the lend¬
These

and I am there¬
to offer suggestions
ing
this experience.
The

years,

unable

fore

the

continue

to

confined."

not familiar with

am

seek¬

that business or persons

as

new
f

sistant cashiers.

<