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Final. Edition
ESTABLISHED OVER
In 2 Sections-Section
'®0K!AL
1
ROO/h
UBRAR>
Wfv.
op Mrcw
Financial
Reg. U. S. Pat. Office
Number 4392
161
Volume
F. Eberstadt
New
York, N. Y., Thursday, June 7, 1945
Urges Overhauling oi Securities Act
As Aid to Post-War Business and
Employment
Author of "The New
Cartels, Though as Dangerous as
Other Monopolies, Are Essential in Eliminating Cut-Throat International
Competition and in Adjusting Production to Demand.
Says British
Few and Understood by Less.
Development of Competitive Capitalism and Lists Measures Required
for Offsetting Dangers of Cartels.
Concludes Solution Lies in a Com¬
laws and reg¬
ulations
)
the
as
so
of
facilitate
to
flow
the
and
ness
rate
>'
Y
;
v
?
.v
a
adequate
maintain
to
a
business
and
British
tions
and
private in¬
as
a
stimulant
and
practices
and
regula¬
•
administrative
and
procedures of the
thereunder may
constitute
SEC
Mr.
laws
certain
Eberstadt's
such serious obstacles to the free
prepared
flow
statement fol¬
I would ap¬
ing
Attitude Is Toward Controlled Cartels
tion and
Views
that
show
ord
Ferdinand
Eberstadt
rec¬
I
not
am
appear¬
ing before this Committee on be¬
half of,
of,
the representative
as
or
any group or
am
here
simply
I
organization.
an
as
individual
and at the Committee's invitation.
No
one
myself is responsible
but
The
reports of this Committee
indicate clearly its realization of
page
of
Regular
Features
on
concurrence
favorable,
result.
And
active
to
post-war business. But
I
peacetime pro¬
on page
for
VICTORY
Members New York Stock Exchange
and
other
-
Chicago
Established
Exchanges
Geneva
1927
INVESTMENT SECURITIES
Rep.
25 Broad St., New York
IIAnover 2-0600
;
Y
Machinery Proposed for Functioning of
World Organization Pending Definite Ratification.
Status of Affiliated Organizations Not Yet Deter¬
mined.
Economic and Social Council's Functions
Expanded to Include Human Rights and Education.
Council Is Also Given Right to Cooperate With NonGovernmental World Organizations and to Call
Conferences and Conventions.
for
4, N. Y.
Cleveland
France's
Proposal
"Raw Materials" Commission Shelved.
a
Ter¬
mination Date of Conference Uncertain.
in
form
or
Basic
mo¬
nopolies
are
the unfettered
ownership'
or
control
of
land,
•
credit,
minerals
and
r t.
why
transpo
That
all
is
four
are
"Mr.
Eton
Boothby, M.P.
an
increasing
Boothby was educated at
at
Magdalen College,
and
Oxford. He
SAN
Robert
gradually be¬
ing brought under
was
elected to Parlia¬
FRANCISCO, CAL., June 6—The world's ment in 1924 and from 1927-29 was
political happenings compose a dark
Parliamentary Private Secretary
cloud overshadowing the earnest peace-seeking
of Mr. Winston Churchill as Chan¬
plans arising from these shores of California.
cellor of the Exchequer. He was
Most disturbing of all are the repeated evidences
Parliamentary Secretary to the
of the dominant Big Five powers' inability to get
Ministry of Food during 1940-41.
along with each other—so soon after V-E Day and
(Continued on page 2516)
turbulent
.
even
A.
Wilfred
May
before
the
of the conference.
end
.
.
.
.
.
The
Organization's necessity of relying on Big
Power leadership "as a practical matter" is con¬
tinually pointed out.
But the 45 small powers' trust in such leadnew
.
.
.
continued
MANHATTAN
BOND)
on page
2528)
Bond
State and
Municipal
Brokerage
Bonds
Service
FUND
Wholesaled fsfributors
-COMPANY
loNG and-GO
HUGH
t
Teletype NY 1-210
of
monopoly,
one
Interim
\
PROSPECTUS ON REQUEST
R. H. Johnson & Co.
CO.
&
-
for Hanks, Brokers
Hirsch & Co.
to
derives
2520) :nY-
Buy War Bonds
War Loan!
exploit the
"common
another.
no one,
duction, consumption, and em¬
ployment levels beyond anything
(Continued
LILIENTHAL
Economic
on
Although the Small Powers' Trust in Big Five Disturbed, Progress Is
Reported in Deliberations on* Setiup'of Economic and Social Councils
that they
Mighty Seventh
Successors
to
Special Correspondent of the Commercial and Financial Chronicle
private capital markets
think, will dispute the statement
constitute one very es¬
link in the chain of good
Completely Planned Economy.
a
only one aspect of the most formidable economic
problem which now confronts the Western Democracies—the problem
By A. WILFRED MAY
.
to over-estimate the relation
of
in the
London
•
alone produce this
so, I don't want to
If we are to have
HIRSCH,
Completely Free and
Inevitable
an
are
istence
,
can
business.
Buy MORE Bonds
a
as
invari ably
from the ex¬
of many
sential
2532.
Cartels
>
elements. No single one, however
seem
for what I say.
Index
favorable
Industrial Concentration in Certain Industries
man"
and
employment
which all of us hope for.
Sustained high levels of busi¬
ness and employment in the post¬
war period will, of course, require
a
as a Means of
Regulating Produc¬
Prices, and Controlling Disastrous International Competition,
promise Between
Conference Works
to
as
That
monopoly.
consumption,
hav¬
the
capital
Maintains
For the power
jeopardize
our
attaining the volume of pri¬
vate investment necessary to sup¬
port that measure of production,
lows in full:
preciate
of
Statesman
desirability
active
securities
our
high level of
production
and employment.
and
employment in
the post-war period.
This view
seems to be quite generally shared
by informed people in business,
labor,
and
government
circles.
Less general, however, is the real¬
ization that certain provisions of
in-'
at
free
.
to
'
dustry,
importance
a
vestment market
of
private investment cap¬
ital into busi-
t
Economy"
Says Securities Laws and SEC May Block Flow of Capital to Detri¬
ment of Employment and Our Whole
Economy. Sees Private Foreign Loans Floated
Primarily in London as Things Stand Now.
Would Give State Blue Sky Authorities
Jurisdiction on Issues Up to $1,000,000 and SEC on Issues Above That.
Sees Regis¬
tration Statement and Prospectus in Present Form So
Complicated They Are Read by
Assuming post-war securities flotations at around $16 billion a year, a figure based on an esti¬
national product of $160 billion, Ferdinand Elperstadt, senior partner of F. Eberstadt &
Co.; investment bankers, New York, appearing before the House Special Committee on Post-War Eco¬
nomic Policy and Planning on May 31, urged simplification and streamlining of the Federal securities
;
Copy
By ROBERT BOOTIIBY, M. P.*
Member, Monetary Policy Committee (Great Britain)
mated gross
,r
a
Cartels—A British View
Investment Banker
f
Price 60 Cents
64 Wall Street, New York 5
BOSTON
PHILADELPHIA
Troy Albany
Buffalo
Syracuse
Pittsburgh
Dallas
Wilkes Barre
Baltimore
Springfield
and Dealers
Bond Department
Hardy&Co.
Members
INCORPORATED
30
48
634 SO. SPRING ST.
WALL ST.
Tel.
NEW YORK
LOS ANGELES 14
5
THE CHASE
York Stock Exchange
Members New
New
York Curb Exchange
Broad St.
DIgby 4-7800
NATIONAL BANK
New York 4
Tele. NY 1-733
OF
THE
CITY OF
NEW YORK
Acme Aluminum
BOND
Common
^;v'vv,
BROKERS
RAILS
MEMBERS NEW YORK STOCK EXCHANGE
INCORPORATED
v
Members N.
14 Wall St., New York
5.N.Y.
TELEPHONE-RECTOR 2-6300
Y. Security
REctor 2-3600
Dealers Ass'n
New York 5
45 Nassau Street
Tel.
Teletype N. Y. 1-576
Philadelphia Telephone:
Public Service Co.
Manufacturing
Corporation
Enterprise 6015
on
request
Reynolds & Co.
Members New York Stock Exchange
120
Broadway, New York 5, H. Y.
Telephone:
Bell
Analysis upon
HART SMITH & CO.
New
York
Security
Dealers
52 WILLIAM ST., N. Y. 5
Bell
Teletype NY
NY
1-635
ira haupt & co.
Members
Members
Assn.
,
IIAnover 2-0980
1-305
REctor 2-7400
Teletvne
request
'•
Preferred
Prospectus
Kobbe, Gearhart & Co.
England
& Preferred
Aireon
INDUSTRIALS
Bull, holden & C°
New
Alloys, Inc.
ELECTRONICS
111
of Principal
Broadway
New
York
REctor
6
2-3100
Exchange'
10 Post Office
Boston 9
Tele. NY 1-1920
New York
Montreal
Toronto
Direct
Private
Sq.
Hancock ;3750
Wire
to
Boston
Thursday, June 7, 1945
Markets in V. S. FUNDS for
We Maintain Active
Pfd.
&
CANADIAN BANKS
Com.
.
Com.
U. S. Sugar,
Ass'n
4at'l
40 Exchange
Telephone BArcJay 7-0100
BELL TELETYPE
Preferred
ill)
Stock Exchange
N. Y. 5
Baltimore
announces
120 Broadway,
is
their
he
Can
a
WOrth 2-4230
Transportation
ity, whether^
armed
or
un-
armed.
It
wher¬
serves
Savoy Plaza
ever
and when
needed
at
Telephone COrtlandt
And
transportation
binds up the
Exchange
York 5
w o u n
7-4070
System Teletype NY
Bell
1-1548
d
s
bond
ultimate
of
Wayne A. Johnston
Byrndun Corporation
A.
S.
in
Europe
as
weapon
it
of
the
end ° of
means
ing what
and Common
We
by His Organization to Assist This Movement,
Though a Blanket Participation Agreement Says RFC Will Make Direct
Loans Only Where Banks Do Not Find It Possible to Supply ihe Needed
Credit. Over 20,000 Loans to Small Business Already Authorized.
I
appreciate the opportunity of appearing before this Committee
to discuss the "Financial Problems of Small
m
H. G. BRUNS & CO.
20 Pine Street,
Now York 5
bined
Teletype NY 1-1843
civilian
dens of
Telephone: WHitehaU 3-1223
Bell
lessening
some
This
railroads
Alabama Mills
traffic
Boston & Maine R.R.
Preferreds
U. S.
&
Preferred
Sugar Co.
Y.
Security Dealers
Assn.
37 Wall
Bell
been exhausted.
most
with
ant
stride,
and
movement in
St., N. Y. 5
Hanover 2-4850
Teletypes—NY 1-1126 & 1127
direction
one
or
In this respect,
on
the
there will
long-haul
Western lines, already the unsung
heroes of the war in the Pacific;
burdens
be
be
with
and
some
roads there will actu¬
traffic
better
a
fewer
and
cars
to
crews
send
balance,
locomotives
home
empty-
And when the par
likewise
is
in the Pacific
grant it
ended—God
address
by
Mr.
it
has
small
Chicago, III., June 1, 1945.
(Continued on page 2514)
cago,
otherwise
n
en¬
the
loans in the
been
made
to
credit from
the
re¬
the
desired
lending institu-
by Mr. Snyder be¬
Select
Business
Small
is
effort has
an
secure
local
'"Statement
fore
loan
business
a
Committee
the
of
after
the
House
on
of
Representatives, May 31, 1945.
small
York
Curb
Exchange
NEW
YORK
5
HAnover 2-9470
Cross Company*
Liquidometer Corp.*
Delaware Rayon "A"*
New Bedford Rayon "A"*
Indiana Limestone, 6s, '52
*
that loans must be made to small
other
on
Hartman Tobacco*
;
the
additional
independent enterprises
war.
They also realize
business
Great American Industries*
business
and
economy
encouraging
however,
i
first instance. An applicant to the
for
for
Therefore
loans
New
ST.
Trading Markets
Bankers realize the
Edge-Collateral"
banks to make these
RFC
war.
available.
beginning
privilege of the
the
preserved
for
national
loans
making
from
the
need
it is not in competition
private lending institutions,
and
facilities
make business
terprise
Johnston
before the Executives Club of Chi¬
Trading Markets in
importance of small businesses in
quired to show that
handed.
*An
after the
pre¬
WALL
Teletype NY 1-1140
part of
finan¬
au¬
to business
with
the
Act
where
Members
64
greater
is
not
the
provide
the
at
Investing
Preferred
Frank C. Masterson & Co.
is, at this time,
on
der
vailing rates is
John W. Snyder
to
cial
credit
course
desire
strong
banks
un¬
to
Common &
not
that
ways,
readily. Of
was
call
RFC
from
a
re¬
thorized
in
Fred F. French
loan from private banks have
a
I feel that there
import¬
subject. '
You will
vantage in having all the loaded
ally
N.
reverses
but for
^reeueaniGompan^
Members
of
the ideal is balanced traffic; there
other.
United Piece Dye Works
Common
much
both
run
plans
RFC has with
is-seldom profit or operating ad¬
Stamped Preferreds
Long Island Lighting
&
pretty
tracks
you
respect to this
of our com¬
military bur¬
emphasis
in
telling
past.
years
swing
Warrants
:
tions, and that such credit
East to West is b'eing taken by the
for
Common
and
glad
am
available. A direct loan by RFC is
made only after all possibilities
what
changes in directions and
kinds of traffic, but with no ap¬
Business," and I
the<*
opportunity of
I
certain
preciable
have
to
(Va.)
Stock
General Finance
of the Measures Taken
period
a
faced
are
Common
Provide Greater Financial Facilities for Small Business and He Tells
that has been
be called
may
transition.
of
WHitehaU 4-8120
Central States Elec.
Corporation Points Out to House Com¬
Other Private Agencies Are Taking Steps io
Banks and
That
mittee
and all their allied carriers enter¬
Lincoln Building
Broadway
Federal Loan Administrator
the
Instead, it finds the railroads
war.
Pfds.
Members New York Stock
Exchange
Members New York Curb
Exchange
Head of Reconstruction Finance
end to
no
Plain
Edward A. Pureed & Co.
By JOHN W. SNYDER*
vital in the prosecution of
so
Common
5Vis
the
the transportation
Campbell
a
A.
Work oi Government and Banks
war.
Consequently,
war
as
peace
potently
is
f
o
It is the
war.
Common
at
7%
Financing Small! Business Joint
one
another.
Nassau Street, New
Charles
65
worth
place than
Vanderhoef & Robinson
of
Hinsch & Co. in Cincinnati.
more
are
more
officer
an
England P. S.
&
was
partner in Seufferle & Kountz,
and
Com.
Bell System Teletype NY 1-1919
people or
goods
are
or
Mtmbers New York Curb
It serves human¬
Co.;
——
ever
3-6s, 1956
31
It goes on and on.
continuing enterprise.
a
start and it does not stop with wars.
does not
It
is
New
Prior thereto
with Einhorn &
was
&
Maxson
6
proved.
Teletype N. Y. 1-1227
Bell
/Pfd.
serving
Kountz has recently been
in the armed forces.
Holds Railroads, if Given Semblance of Equal Opportunity
Withstand Competition From Other Transportation Services.
United Public UtiPs
in
Mr.
Department.
Buying
Osgood B
Kountz
them
with
associated
now
branch offices
our
Inc.,
New York City,
that George H.
*
1-1557"
NY
La.-Birmingham, Ala.
Direct wires to
Co.,
&
Ingen
57 William Street,
Need for Close
Standard Commercial Tobacco
l
Cooperation of Men and Management and Further
Modernization of Equipment, Though Lines Are Not Faced With Recon¬
version Problems.
Expresses Belief That Heavy Rail Traffic Will Be
Sustained and That Both Freight and Passenger Services Will Be Im¬
Van
J.
B.
Executive Recounts Wartime Accomplishments of
Railroads and Reviews Post-War Problems in Rail Transportation.
Sees
Leading Railroad
Exchange
St., New York 4, N. Y
New Orleans,
Oeorge Kounlz With
3. J. Van Ingen Co.
President, Illinois Central Railroad
Mississippi Glass
Members
Members New York Stock
2-7815
REctor
25 Broad
By WAYNE A. JOHNSTON*
International Elevating
Quoted
Request
on
HAnover 2-0700
Dardslet Thrcadlock
&
Tel.
The Railroads Face the Future
Kingan & Co., Com. & Pfd.
—
Steiner, Rouse & Co!
BROADWAY, NEW YORK
120
STY 1-423
Carborundum Co.
Common
New
NEW YORK 6, N. Y.
Teletype NY 1-672
115 BROADWAY
HA 2-2772
PI., N.Y.5
Sold
Members
Other Principal Exchanges
Members N. Y. Stock Exchange and
York Stock Exchange
York Curb Exchange
New
:
Security Dealers Ass'n
of Securities Dealers, Inc.
—
Analysis
Goodbody & Co.
■
Bought
Canadian Securities Dep't.
Established 1920
Members
Bought—Sold—Quoted
CANADIAN UTILITIES
KING & KING
York
& CO., INC.
4*4% Conv. Pfd.
CANADIAN MINES
Mid-Continent Airlines
New
P. R. MALLORY
McQuay-Norris
CANADIAN INDUSTRIALS
Missouri Pacific
■
than
basis.
"Gilt-
a
Bankers,
Analysis
on
request
F. H. Roller &
Members
N.
Y.
Co., inc.
Security Dealers Ass'n
111 Broadway, New York 6, N. Y.
BArclay 7-0570
NY 1-1026
are required to bear in
mind that they are depositaries of
private funds and this all-impor¬
tant question of requisite
safety
their depositors must be con¬
Eastern Sugar
to
sidered
by
them
when
making
Associates
Associ¬
Common
loans.
The American Bankers
ation,
as you know, created the
post-war Small Business Credit
Commission under the Chairman-
shiD
of
a
very
capable and
Quotations Upon Request
sym¬
FAltR &
pathetic banker, Robert M. Hanes,
to study the problems of small
business.
Credit
It is felt that the Bank
Pools
being organized
by
this Commission under Mr. Hanes'
leadership,
can
(Continued
take
on
more
CO.
Members
New
York
Stock
Exchange
New
York
120
WALL ST., NEW
Coffee & Sugar Exchange
YORK
'
TEL. HANOVER 2-9612
risks
page 2519)
Railroad
i
Public Utility
Industrial
Taca
FASHION PARK, Inc.
Debenture
5's
1963
New York
Airways, s. A.
Marmon
Herrington
Southeastern
Market
for
Corporation
Ohio Securities
5s, due 1964
$3.56 Cumulative Preferred
and
STOCKS & BONDS
WM. J. MERICKA 6- Co.
Bought—Sold—Quoted
INCORPORATED
Troster,Curries Summers
G.A.Saxion&€o.,Inc.
170 PINE ST., N. Y. 6 WHitehall 4-4970 |I
Teletype NY 1-609
Members N.
Simons, Linbuin & Co.
Members New York Stock
25 Broad
74
Exchange
«3•- i
Private
Tele. NY 1-210
:
u:
Wires
Detroit
<"
}
1
Dealers Ass'n
1
.]
-
I
to
HA 2-2400
1-376-377
Union
Commerce
Trinity Place, N. Y. 6
Teletype NY
St., New York 4, N. Y.
HAnover 2-0600
Y. Security
Members Cleveland Stock
Exchange
Buffalo
Pittsburgh
L: f
It.-
>
-
t
-
-
Cleveland
St. Louis
v
*
yI
29
Bldg., Cleveland
Telephone MAin
8500
Broadway, New
York
Special Participating Stock
BOUGHT
—
SOLD
—
QUOTED
14
A
e/iu
6
WHitehaU 4-3640
Direct Private Wire to
Cleveland
MEMBERS NEW YORK STOCK
One
Wall
Street,
New
EXCHANGE
York B, N.
Y.
Number 4392
Volume 161
THE COMMERCIAL & FINANCIAL
CHRONICLE
The
Amer.
COMMERCIAL
FINANCIAL
Barge Line
Reg,
Whiting Corp.
U.
We
are
Staley Mfg.
2-9570
Mohawk Rubber
to 9576
Editor and Publisher
William Dana Seibert, President
Armstrong Rubber
Published twice
every
(general
;
strauss bros.
New
32
York
Security
Broadway
Dealers
Telephone HAnover 2-4300
week
Members New
Thursday
news and
CHICAGO 4
DIgby 4-8640
Monday
Harrison 2075
Our
Real
Other
Offices:
Estate
Department
Specializes
La
S.
Salle
1945
Reentered
by
as
William
B.
Dana
Company
York,
N.
Y.,
second-class matter Feb¬
under
the
Act
of
of
Canada, $27.50
Central
America,
Cuba, $29.50 per
and the
PRUDENCE BONDS
Call
for
us
quotations
year)
More Accurate
U Members New York Stock Exchange
40 Wall
St., N. Y. 5
Bell
WHitehall 4-6330
Teletype NY 1-2033
BOUGHT
,
Television,
NOTE—On account of the fluctuations
in the rate of exchange, remittances for
foreign subscriptions and advertisements
I must be made in New York funds.
L J. GOLDWATER & CO
Members New York Security Dealers
Assn.
39
after
the
HAnover 2-8970
;;
^Foundation Co.
to
York.
.
A
the
follow
:
,
world
series
in
*Punta Alegre Sugar
New
.
in Topeka,
Kansas, expects to
the latest fashion shows of leading
New York stores.
woman
*
^Howell Electric
are
Wickwire Spencer Steel
watch
*
A
Lyndon O. Brown
lady
Bought
(to
sermon.
~
?An address by Dr. Brown at the First Annual Conference
&
in
of
the
speculating of their
New
in
mental
and Favors With Modification the IBA Credit "Pool" Plan.
In this
ington on the
b j ect are
from
business
organizations
business¬
and
who
are
opposed
to
men
any
further
people,
favorable to
type of enter¬
exist, is for
cause
of
concern.
many a
caps.
There¬
During the
depression, it
fore, if only as a warning against
rapid relaxation of other war¬
measures
while the war is
assumed
was
time
if
that
ap¬
about
three
million
in
curb rising speculation in
land and residential
m ore
and
with adding variety to the stand¬
more
credit
estate
will
find
strong
sup-
to small
(Continued on page 2523)
be
W. L. Sturdevant, Its Director of Information, in
Letter to the Chron¬
icle" Denies That the Project's Power Activities Are Unprofitable. Says
Electric Revenues Must Absorb Expenses of Governmental Functions
Operated by TVA. Holds "Surplus" Provided for Federal Government
Fully Offset the Tax Exemptions.
in
S.
Eccles
well.
the
terms of credit
and
We
of
problem
relief.
We
on
Request)
SUGAR
much
SECURITIES
preserving competition,
living, and with supporting
independent
communities.
Also
^Statement made by Mr. Eccles
the
before
Small
Select
Business
Committee
of
,
the
House
on
of
DUNNE & CO.
Members New York Secur'ty Dealers Assn.
25
St., New York U, N. Y.
3-0272—Teletype NY 1-936
Private
Wire to Boston
Public National Bank
PANAMA COCA-COLA
—
Broad
WHitehall
Rep"*"—June 1, 1945.
(Continued on page 2526)
Quarterly dividend paid April 16, 1945
Editor, The Commercial and Financial Chronicle:
We have just read the article, "Proposed.Missouri Vallejr Author¬
ity," by Ernest R. Abrams in your issue of May 17, 1945. The article
is so misleading in its statements*^- • - ■
;'
have
borrow¬
conceived
Marriner
businesses
(Circular
ard of
all would
ers,
Replies to Ml Abiams
busi¬
small
Teletype NY 1-84
Interesting Postwar Situation
number.
to do with
i
Dealers Ass'n.
LEA FABRICS
enterprises of the individualistic
type
remain
very
numerous,
The
&
COrtlandt 7-8190
Broadway
An
businesses in the last half century,
out
stocks, farm
Sold
York Security
Bell System
practice
means independent individual en¬
terprise.
It is fortunate for the
economy
that, along
with the
growth of a few thousand large
only
gram to
—
Htnial
Members New
in
business
Small
pump
on
Laclede-Christy Clay Prod!.
170
proach is necessary.
could
going
ness
TVA
we
broader
a
in the Pacific, g pro¬
Those officials
be done to ward off in-
a
prise is under
sufficient
real
as
serious handi¬
now
controls.
doing
business
away
business
too
small
but
that
know
now
p r o s p e rous,
what controls of prices and
still
for
doing
General Tin Inv.
Hooker Electrochemical
Bought
a strategic time for formulating a sound program
the long-term needs of small business.
Small businesses
at present are<&
In fact, the existence of so con¬
a sentiment
among the
with
Bartgis Bros.
present is
for meeting
siderable
Washin gton
responsible
they do
The
■
Los Angeles
Billings & Spencer
Competing With Private Banking,
own.
Chicago
TRADING MARKETS
Comprising (1) Making Available Technological and Managerial In¬
formation; (2) Readjustment of the Tax System so as to Favor Particu¬
larly the Smaller Enterprises; and (3) the Continuance of the V-Loan
Mechanism to Enable the Banking System to Extend Credit.
He
as
;
2-4785
System Teletype, NY 1-2480
Private Wires to
Aiding Small Business
Opposes Direct Government Loans
>
Security Dealers Assn.
HAnover
enough
they project recent trends
York
40 Exch. PL, New York 5, N. Y.
Bell
this,, they are far from convinced
that nothing should be done. • ."..v.
Wash¬
to
the
Quoted.
Members
Radio
on
(Continued, on page 2530)
well
engaging
are
of
be exerted by
let
into the future and when
people.
s u
are
can
process
the
in
can
to
of
Most
what
public
forth the voice
letters coming
who
which
alone,
setting
ence
Herbert M. Bratter
pressure
the
correspond¬
cognizant
—
Request
J.F.Reilly&Co.
,
Business, City College School of Business, New York, May 23, 1945.
A Plan for
stories to the effect that the Office of Economic
on
Dr. Fosdick in New York deliver his Sun¬
Speculation Fever, but Eccles Proposal to Tax at 90% Capital Gains
Has Not Won Approval of Treasury or of Congress, and Has Been Met
With Serious Objections.
Holds Relative Increase in Farm Values
By MARRINER S. ECCLES*
Has Already Reached World War I Peak, and That There Is Fear That
Chairman, Board of Governors Federal Reserve System
Further Rise May Magnify Post-War Readjustment Problem.
Chairman Eccles Proposes a Three-Fold Program to Aid Small Business,
Stabilization is considering a program for the curbing of speculation
in stocks and
—
Sold
—
*Ntemo
in Ohio expects to watch and hear
Official Circles That Increase in Stock Market Margin
Trading May Lead
considerable
Teletype NY 1-1203
war.
day
Writer Points Out That Economic Stabilization Office Is
Studying Prob¬
lem of Dealing With Rising Capital Values Despite Strong Public Senti¬
ment Against Additional Government Controls*
Says Belief Exists in
resulted
V
N. Y.
Grayson Shops
Typical of the things expected
the following:
12-year-old boy on a farm in Texas ex¬
By HERBERT M. BRATTER
while
Broadway
New York 6,
Understanding of Public's Attitude
from television
Washington Pondering
*
Speculation Controls
flation,
QUOTED
■
Complete Statistical Information
and
pects
real estate has
SOLD
-
,
Television has stimulated public imagination
practically everyone has some ideas as to why
they would like to have television in their home
Record—Mth.$25 yr.
Monthly Earnings Record—Mth.. .$25 yr.
A
Recent newspaper
YORK
4-6551
Toward Television.
Other Publications
Bank and Quotation
Newburger, Loeb & Co
DeptI
TITLE COMPANY
Optimistic Prediction Regarding Post-War Sales of Television
Sets, the Rosy Prospects Have Some Drawbacks,
Such as (1) High Costs in
Furnishing Television
Networks; (2) Uncertainty of Advertising Use, and
(3) the Relatively Higher Prices of Television Sets
and Expense of Their Installation. Sees Need of a
March
South ana
Spain, Mexico
and
year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
per
Securities
STREET, NEW
CERTIFICATES
Of Stewart, Brown & Associates
Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
CERTIFICATES
Expects
Dr. Brown Points Out That
Despite the Public's Desire for
3, 1879.
TITLE COMPANY
WALL
By DR. LYNDON O. BROWN*
ruary 25, 1942, at the post office at New
in
99
Exchange
Of Television
St.,
Chicago 3, 111. (Telephone: State 0613);
1 Drapers' Gardens,
London, E. C„ Eng¬
land, c/o Edwards & Smith.
Copyright
Securities
135
Obsolete
Teletype NY 1-5
York Stock
What the. Public
(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
clearings, state and city news, etc.)
Teletype CG 129
-BUT IT HELPS
Telephone WHitehall
.
Teletype NY 1-832. 834
OBSOLETE BROKER
k
advertising issue)
and every
CRAZY TO BE A GOOD
25 Broad Street, New York
Ass'n
Board of Trade Bldg.
NEW YORK 4
a
YOU DON'T HAVE TO BE
Sia•encer Trask & Co.
'
Thursday, June 7, 1945
H. K. Porter Co.
AND COMPANY
PREFERRED STOCKS
Seibert,
William D. Riggs, Business
Manager
llCHIflMIII
B. S.
Public Utility and Industrial
Place, Now York 8
REctor
offerings of
High Grade
<
Publishers
Herbert D.
Members
interested, in
Patent Office
William B. Dana Company;
.
25 Park
A. E.
CHRONICLE
S.
250.1
and
& Trust Co.
$.50
DIVIDENDS:
National Radiator Co.
.
on
page 2179
about the TVA that
we feel
compelled to reply to them
and to request in fairness that the
reply be published.
TVA
operations consti¬
tute the only activity which is
subject to the sort of commercial
financial
analysis
which
Mr.
Abrams attempts.
In the fiscal
power
1945 (to date)
$1.25
—
1944 $2.75
—
1943 $4.50
Industrial Finance
Approximate selling price—28
1944, power operations pro¬
duced total operating revenues of
Preferred
year
New
Analysis
on
request
$35,430,000 and a net income, after
Hon. Rose STrsster
of $14,116,000.
plus interest paid
all power expenses,
The net income,
on
bonds, amounted
to a return
of 4.1% on the net average power
..
...
(Continued on page 2521)
Established 1914
74
Members N.
61
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400
C. E. Unterberg
Teletype: NY 1-375
Y.
& Co.
Security Dealers Ass'n
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3$6f
Teletype NY 1-1666
;
<
Thursday, June 7, 1945
CHRONICLE
COMMERCIAL & FINANCIAL
THE
2504
Winters & Cranipton
and
stoves
for
Appreciation
For Price
Electric
Company-fCorporation
hardware
leading manufacturer of
A
-
Associated Gas &
Industrials
Two Attractive
Securities
refrigerators-
Elk Horn Coal Corp.
Bought
Sold
—
—
Quoted
Lawrence
FIRST COLONY CORPORATION
Investment Securities
Underwriters and Distributors of
iWDMMSill
70 Pine Street
N.
REctor
Y.
Com. & Pfd.
Appliances
Broadway, New York
42
common stock
Brov/n Co.
4-0857-0865-0869-0870
WHitehall
BOSTON
We consider it especially attractive from the
standpoint of capital gains and future dividend returns.
approximately 11 lk.
Market
Inquiries Invited
General Machinery
F. H. KOLLER & CO., Inc.
Cement*
Lawrence Port.
BArclay 7-0570
largest
companies
American Window
($100
American Arch
unbroken dividend record
War ban Bonds
$2.00 dividend basis
Currently
Priced about
Maguire Industries
j|
Maine Central, $5 Pfd.
for
I
P. R.
W. J. Banigan & Co.
West
du
.
CIIAS.
50
JONES
II.
CO.
&
1
ON REQUEST
Broadway, N. Y. 4
Pont, Homsey Co.
Shawmut
^
Members New York Security Dealers Assn.
1004
Established
V
Philip Carey
30
HAnover 2-8380
Pine
Tel.
BOSTON 9,
Street, New York 5, N. Y.
Digby 4-7900
Bank Building
Capitol
U
:
GRAND RAPIDS 2, MICH.
Phone 94336
MASS.
Detroit
Ten Don'ts
Corp.
Standard Stoker
'
'
"
•
1.Don't let
•'
ft,
;.
.
•*
ing
Spencer
to
in
but
this
cases
With it
rary.
Aspinook Corp.
there will be
Spinning
decline
some
Darlington Mfg.
of
compa¬
readjust¬
a
ment
cess
for
ex¬
profits
troublesome.
2. Don't buy
Conn. Lt. & Pr. Com.
Roger
/
Cons. Elec. & Gas Pfd.
W.
Corp.*
Special Part.
bonds
issued.
being
the
Babson
long-term
Southeastern
new
Iow-
coupon
Iowa Southern Util.
Pfd.
rate
Money
request
'
*
Request
Members N. Y. Security Dealers Assn.
broadway, new york 5
Wires
Hartf'd 6111
NY
to Chicago
and
^Riverside Cement
Common
^Central Iron & Steel
*Circular Available
This probably also
applies to many utility stocks. I
am especially bullish on the chain
stock
the
stocks.
I
also
convertible
should
like
some
preferred
combine reasonable
Don't
wait
buying the land
hope to
some
"too long
SQUARE
BOSTON 9, MASS.
HUB
LOS
you
SALT
properties and am rather scary
about
city property; but wellcontinued on page 2511)
WE
Stix
Freight Truckloadings in
April Up 4% Over 1944
rates
will
decreased
be
selling on
lower
prices
securities
on
a
Co.
&
Phila.
Bos. 2100
below
securities
take
further
any
This
April,
but
March
ap¬
1944.
•
The
against 2,270.706 tons in
and 2,036,763 in April of
as
,
;V
ATA
/
index
•/.
figure,
will
post-war
probably
4.
Don't
market.
.
sell
The
trial Averages
more
some
last
.
the
general
Dow-Jones
,
Indus¬
during the next
as
4.8% above April of 1944.
petroleum
for
about
12% of the total tonnage
reported,
a
decrease of 10.0% be¬
com¬
period
representing 100,
183.
low
March
and
April of last
was
5.6%
below
transported
in
the
month
3.0%
above. March
above
April of 1944.
hauled by carriers of general
About
freight. The volume in this cate-
reported
was
1,
Utah
464
TELETYPE SU
Utah
milk, textile products, cok<
bricks, building materials, cemer
and household goods.^ Tonnage i
this
3%
of
of
decreased
was
6.0%
7.5%
above
22.5%
Booklet
from
tonnage
miscellane-
belo^
Apt
:
Retires
was
Co.,
the total
consisted
class
March but
Charles
and
tobac
commodities, including
co,
of 1944.
year.
tonnage. Their traffic volume
Approximately 81% of all ton¬
nage
ous
Carriers of iron and steel
prod¬
ucts hauled about 4% of the
total
*
stock
will surely sell for
time
1938-1940
was
Transportation
of
products, accounting
showed
carriers for the three-year
was
City
Lake
SYSTEM
gory decreased 6.6% below March
but
tons in
of
severe
a
16.0 S. Main Street
Oldest Investment House in
headed
for
ESTABLISHED 1899
Exchange Z
Salt
puted on the basis of the average
monthly tonnage of the reporting
which
Edward l. burton
& COMPANY
Members St. Louis Stock
showed these carriers transported
aggregate of 2,117,481
Light
STREET-
St.Louis l,Mo#
certainly to railroad income bonds
which are now selling at fantastic
prices. Railroad net earnings are
slump
SECURITIES
OLIVE
IN
SPECIALIZE
Preferreds
BELL
an
longer;
profits.
your
382
LAKE CITY
Utah Power &
announced:
ATA from 257 carriers in 41 states
inevitable.
S09
March but
6% basis. Much
for fixed interest
3. Don't hold second-grade rail¬
I
6.7%
INVESTMENT
4.0%
Comparable reports received by
a
are
was
time again
some
LA
TELETYPE
ST. LOUIS
home.
a
The volume of freight trans¬
ported by motor carriers in April
selling
now
CALIF.
14,
don't like big commercial farm
I
24
bonds
ANGELES
BELL
Stock Exchange
SPRING STREET
SOUTH
639
Teletype BS 69
1990
before
which
upon
day build
Tel.
incorporated
Members of Los Angeles
POST OFFICE
10
which
safety
with speculative possibilities.
5.
Pledger & Company
lerner & co.
of
now
many years.
'PHONES
Buff. 6024
American Investors
present time.
plies to most railroad stocks and
ENTERPRISE
In
Many
now
1
*
The pendulum always has swung
and is going to continue to swing.
road
Direct
you.
abpve April,/ 1944, ac¬
cording
to American
Trucking
Associations, Inc., which on May
3l/2% basis will
Queens Boro Gas & Elec. Pfd.
REctor 2-8700
*Kingan & Co.
i'
• ...
are
which
continue low for only a short time.
Interstate Power, Pfd.*
120
.*■. i«
should not be
Central El. & Gas Com.
upon
■■
taxes, this
American Gas & Power
Upon
a
nies but, after
Worsted
Circular
■■
Pacific
twelve months than they do at the
in the
earnings
Consolidated Textile
+Prospectus
peace
slump will be
only tempo¬
Alabama Mills*
or
from
over
most
4
••
must, of necessity, be some unemployment
switch-<:♦>
'
;
•
war
Nassau Suffolk Ltg.,
' ! ' y
*
Giant Portland Cement
while
work;
*
TRADING MARKETS
Economic
on
possible reconversion slump frighten
any
certain industries there
Triumph Explosives
Warner-Swasey
*Bulletin
Trading Market in:
Subjects Discusses
Stocks, Bonds, Real Estate and Churches
Airways*
New Jersey
Tele. GR 184
'
Tele. NY 1-1790
Suggested by Babson
Prominent Writer
Stromberg Carlson
Berkshire Fine
Z;
Office, Buhl Bldg.
Teletype BS 424
4330
LOS ANGELES
Sterling Engine
Wickwire
Crampton
Members Detroit Stock Exchange
;
H. K. Porter, Com.
Punta Alegre Sugar
Taca
Michigan Steel
Winters &
Inquiries invited
BERWALD & CO.
to
Successors
j* Michigan Chemical
j Mohawk Rubber*
Sheraton
1962
white, noble & co.
Mallory
Medusa Port. Cement
*
of
Central Steel & Wire
on
$39.00 per share
CIRCULAR
Victory
Rys. of Buffalo
3s-5s
Majestic Radio & Tel.*
,
I
International
Buy 7lli
Bought—Sold—Quoted
,
Simplex Paper Corp. Com.
value)
par
Sixty year
Company
Upon Request
Tele. DE 507
GRAND RAPIDS
stock
60,000 shares capital
Glass Co.
Cadillac 5752
$450,000 mortgage note
NY 1-1026
.
estate
Capitalization
6, N. Y.
NEW YORK
BROADWAY,
.111
Liberty Aircraft -Products
real
Exchange
Buhl Bldg., Detroit 26
New England's
industrial
Y. Security Dealers Ass'n
Members N.
of
One
F
,
Detroit Stock
Members
1836
ORGANIZED
•**
& Dolphyn
Wharf Company
General Tin
Grayson Shopst
Great Amer. Industries
Mercier, McDowell
Boston
Foundation Co.
Brochure
Stamping Co.
Reports furnished on request
higher levels.
Ekco Products t
Electrolux
|
*
National
take a serious look at the stock of this
company in your manuals.
This company, prior to the war,
was
an
excellent dividend payer and sold at considerably
We suggest that you
Douglas Shoe, Com. & Pfd.
Du Mont Lab. "A"
:
General Industries Co.
City
Teletype NY 1-2187
Buda Co.*
I
Co.
Morris Cohon &
SAN CARLOS MILLING CO.
Brockway Motors
I
1-714
DETROIT
Bowser, Inc.*
I
Broadway
Teletype N. Y,
Report On Request
American Hardware*
Bendix Home
Security Dealers Assn.
2-4500—120
Bell System
Aetna Standard Eng.
Am. Bantam Car,
..Established 1908
Members
,
"
■
J.K.Rice,Jr.&CX
Cement
New York 5
Teletype NY 1-2425
,
Hanover 2-7793
Portland
J.
Bocklet
has
retired
Gammack
Street, New Yorx
partnership in
40
Wall
City, members of the New York
Stock Exchange, effective May 3 •
Number 4392
161
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
*
2505
AMERICAN BANTAM CAR
:
6% cumulative; conv. preferred
(Arrears $3.75)'
U$10
?
\
THERE'S NO
(callable at 14 plus arrears)
par
Selling Price—15
New Circular
Request
on
HoixResESDigsm
Canadian Marconit
FOR DEALERS!
Established 1914
74
Canadian Pacific Ry.
"Crystal Ball"
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400
Mining Corp. of
Teletype: NY 1-375
EVERY
atmagic
somecrystal
time orballother,
has fervently
wisheddealer,
for
to help him find
Canada
a
Pacific Coast Stock
Curb and Unlisted
Exchanges
Securities
elusive
some
Open io 5:30 P. M.(e.w.t.)
do
claim
we
security. Unfortunately, there is
locate "hard-to-find" securities
easy way to
unusual
any
such
no
.
.
nor
.
HART SMITH & CO.
powers.
52
WILLIAM
Quotations and executions for brokers,
dealers
and
Coast
including
securities,
Asst. Mgr.
Joseph McManus & Co.
Members
Members New
San
York Curb Exchange
New
those
Direct wires
Dean Witter
and
York
Co.
Stock. Exchange
Stock
Francisco
a
14 WALL STREET
New
Teletype NY 1-1610
Digby 4-3122
frequently
can
regularly for other dealers. Naturally,
close touch with all bond markets, and often
very
just where to get
SALESMAN
ing
services
the
man
to whom
'
active
several
Also
tomers.
;
furnished
tion
we
given.
mission
full
Missouri Pacific
Basis.
will
be
Rochester
William
BUY 7th
as
teletype
or
situation where
you
when
us
we can
.
WAR LOAN BONDS
you next
Frederic H. Hatch & Co.
help? We'll
and to do whatever
we can.
Incorporated
V
Y. Security Dealers Ass'n
Members N.
Wall
New York 5, n. y.
Street
Bell
R. W.
Bought—Sold—Quoted
write
INC.
NY
Teletype
1-897
Pressprich & Co.
68 William Street
York
52
5, N. Y.
William
St., New
WHitehall 4-3990
NEW YORK
1924
American Locomotive
Telephone HAnover 2-1700
Brill Corp. 7%
Teletype NY 1-993
5
,
Established
1919
New
a
glad to hear from
appoint¬
SECURITIES
Street
yourself in
job
coopera¬
J. ROY PROSSER & CO.
52
time,
you
Telephone
George R. Cooley & Co.
Established
deal—and we'll give
a
63
ment.
INVESTMENT
together whenever it's
cus-
Please
for
be
Preferred
Equitable Com¬
telephone
or
firm
leads
and
find
of a sales¬
will assign
let's finish the
cooperation with other dealers mutually
Why not write, phone
Cayuga & Susquehanna
interested in obtain¬
Two Down & One to Go
possible, to complete the transaction.
as
Toronto
j,
keep
we
particular security. Moreover,
so we want to get
profitable to close
are
Montreal
Honolulu
Angeles
much
We
a
HAnover 2-09*0
Teletype NY 1-396
New York
securities—we ourselves
scarce
do that
pfofitable,
Francisco
San
obtain
contacts
in
BArclay 7-4300
York
Los
a
we've found
•a
New York 6
dealer with broad and active
However,
know
Exchange
other security and commodity exchanges
Chicago Stock Exchange
39 Broadway
St., N, Y. 5
Bell
Pacific
on
Which also have eastern markets.
MICHAEL HEANEY, Mgr.
WALTER KANE,
institutions
201 Devonshire
Cayuga & Susquehanna
Street, BOSTON 10
York 5, N. Y.
Members New York Stock
Teletype NY 1-2419
7% Pfd.
Pfd.
N. Y. Lack. & Western
Exchange
Western Pacific 5s, 1946
PUBLIC
Post-War Private Flying
And Employment
J
INVESTMENT
Phila. Reading Coal &
BONDS
INDUSTRIAL
UTILITY,
AND
RAILROAD,
MUNICIPAL,
GOVERNMENT,
GUDE, WlNMILL & CO.
Members New York Stock
Monro, Pennsylvania Central Airlines Head, Predicts 100,300
Jobs by 1948. Condemns Railroad Opposition to Airport Development.
aviation
The
disillusion
industry must be
the
who
thousands
with fighting
honest
look
the skies
to
and
men
for peacetime
pursuits to expect jobs which will not exist unless private flying and
other aviation fields are fully developed to create new employment
opportunities.
This thought
hi
was
;
expressed yesterday by C. Bedell Monro, Presi-
dent of Penn¬
sylvania-Cen¬
tral
Airlines,
in
talk
a
that
airlines before
domestic
the
the
be¬
had
war
fleet of
a
planes with
an average
Club
ployees
the
York.
New
He de¬
clare d
even
that
the most
esti¬
generous
potentials
only
airline
field
opera¬
less
tions will pro¬
vide
only
pitiful
ket
on
100,000
in commercial
y
380
than
the
entire
on page
in
2523)
the**
of
Wm, Bobbins to Staff
C. Bedell Monro
servicemen
.who will look
to
'C.v-'"v
aviation for their future secur¬
ity."
"
;
'
"
Mr. Monro urged
the fullest de¬
velopment of private flying for
the creation of a wide variety of
employment
opportunities
for
those thousands trained for avia¬
pect jobs in aviation after
as
the
of
one
the war.
national airport program
a
requisites
the
to
stimulation of private flying, Mr.
Monro deplored recent testimony
of railroad interests
a
program.
acterized
threat
opposing such
The PC A head char¬
this
that
opposition
involves
an
sabotage to the future of
tire national defense and
hensible
blow
House Banking Committee
Reynolds & Co., 120 Broadway,
New York City,
members New
Stock
York
Exchange,
announce
Robbins is now
associated with them. He was for¬
that
William
merly
an
B.
officer of Fitzgerald &
Company.
;
*
WASHINGTON, D. C., June 6—While some supporters of Bretton
at
;
Byfield & Go.
Arnold
B.
bers
New
Mr.
Wayne
em¬
become
& Co., 61
York City, mem¬
York Stock Exchange.
of
en¬
has
Broadway, New
''a
repre¬
Wayne
associated with Byfield
as
posh-war
ployment."'
With
was
Bruns, Nordeman
thereto was in
self.
formerly
with
& Co. and prior
business for him¬
u._w»
^
Associates, Common
Ohio Match Co.
the
of
ment
pending bill by
puzzled
by
the
continued
criticism of
bankers, such as cropped up in to¬
day's debate on the House floor.
Members
Representative
nois
Congressman
days
Spence, Chairman of the Banking
Committee, has been mentioning
with obvious satisfaction the fact
Associa¬
American. Bankers
tion
President W. Randolph
gess
on
Bur¬
May 28 has expressed in
the
changes the committee made in
the enabling bill now before Con¬
gress.
It was reliably reported
Banking
the
that
intended
Chairman
letter
put
Record.
day.
•
the
in
Thus
The
to
Committee
have the
done
was
yester¬
to
"While
not
the
new
meet
in
bill
of
every
the
•
course
respect
islation
their
manipulation
currency
the past.
to have
prices
foreign
Texas,
is
"There
this
this
we
Yet
these
tion
we
which is, after all,
most desire."
find in the same record
statements
by
Congressmen:
Administra¬
international
all
with
their
In every way
opposing it.
It
against their selfish, greedy in¬
power
and might.
possible they
are
this
do
bill
not
to
become
want
The
a
these
that
sit
around
waiting for
some
country to get into trouble so that
they
can
help bail it out at a big
the disadvantage of
the other countries of the world.
price and
to
who
fight¬
are
the
on
Bretton
opened by Repre¬
sentative Frederick C. Smith (R.)
of Ohio
was
of the three
one
Committee
members
Banking
who
signed
minority report on the bill (HR
3314).
Mr.
Smith
devotpd his
a
opening
speech
Wolcott
Economic
criticism of
Committee'
on
amend¬
j
;;
"The
are
to a
and
Development
ments.
Amendment
Wolcott
wb
told," Congressman Smith said,
"would confine the Fund to shortr
term
lending
-
the } CEO
authorize *the
and
would
Amendment
stabiliza¬
Bank to make long-term
tion
loans
be
vultures
ones
debate
reading
the
1-897
Criticizes Wolcott
Woods bill
terests.
are
the
are
agreements; it is against their in¬
They
New York B, N. Y.
Amendments
the
with headquarters
that is opposing
legislation
for
whole program
House
country
They
what
the
of
an
ring
banking
in
terest
accom¬
at
as
Banking Committee, said:
law.
effective
governments
member
a
Security Dealers Ass'n
Teletype NY
Smith
They have sought
in setting the
high rate of interest
provement over the original, and
in- the
foreign
they did
in the not-far-distant past."
Representative
Patman
of
a
Y.
ing this bill."
exercised
various exchanges and
as
well as in making
interests,
to
of
They
free rein
a
on
loans
N.
63 Wall Street
out¬
'bank¬
the
they have
as
is
aid
some
opposed to this leg¬
because it will prevent
suggestions that we made, it
seems
to
us
a
substantial im¬
will
Illi¬
are
the
plishment, of the purposes of the
that
aware
am
bund'
it in
of
bell
standing bankers and
Congressional
letter as read
Sabath
said:
"I
ers
some
Incorporated
the^
ABA, others are equally
For
Frederic H. Hatch & Co.
pleased puzzlement over the apparent endorse¬
Woods express
does
act
our
a
Now Is
&
and Financial Chronicle
Special io the Commercial
House contains this statement:
Arnold Wayne
.
m: h ).
Oppose It. Arguments Centered on Monetary Fund Project.
writing his gratification with
tion in the armed forces, who ex¬
Citing
Products Co.
Eastern Sugar
Insufficiently Clear While Wolcott (R) of Michigan, Ardently Defends
the Measure and Congressman Crawford and Jessie Sumner Strongly
that
countless
thousands
of Ohio Criticizes the Amendments Made by
aviation—far
number of men
(Continued
a
the
in
jobs
of commercial
mar¬
for
American Maize
Although Bankers Withdrew Opposition to Amended Bill, They Were
Attacked in the House Debate on the Measure. Representative Smith, (R)
ground
ground personnel for each plane.
Even this expansion will provide
mates of post¬
war
only
of 50 em¬
for each
plane, representing a total of only
17,300 people.
"By 1948 the air¬
lines may have about 1,000 planes
and the ratio may increase to 100
fore the Wings
of
House Debates Brettou Woods Bill
N. y.
Teletype NY 1-955
Dlghy 4-7000
as
The PCA President pointed out
Exchange
1 Wall St., New York 5,
C. Bedell
not
Iron
1949
6s,
STOCKS
made .by
ment
that
of
otherwise
the Fund.
the Wolcott
would
the
would
that
lead
present
one
|* . |A
Amend¬
to. think
language in the
Agreement confines the
short-term lending, but
(Continued
.
on page
/.•
.
Funcf jto
tb^ i$4o
2529)
I
*
|
tfQGS
caaQGcnfv
Pacific
Thermatomic Carbon Co.
FINISH
BUY
THE
WAR
FIGHT
BONDS
STOCK
COMMON
To
yield
over
Circular
on
Coast
Securities
8%%
Orders
request
Pacific
Executed
Coast
on
Exchanges
ceeeeci
1914
Established
Curtis
Paine, Webber, Jackson &
Telephone: BOwIing Green
1879
ESTABLISHED
Schwabacher & Co.
York 6, N. Y.
9-7400
Teletype: NY 1-375
Trinity Place, New
74
Members
New York Stock
Chicago
..
Board
14 Watt Street
Dealer-Broker Investment
Securities
Public Utility
Commonwealth & Southern
Securities and Exchange
The
Commission on' May 31 approved
It
and integration program of the Commonwealth
fx Southern system, excepting for minor amendments, to which the
company is expected to agree.
Under the plan, the so-called northern
utilities—Consumers Power Company, of Michigan, Central Illinois
Light Company, Ohio Edison Company and Southern Indiana Gas
fz Electric Company—would re-3>
—:
their common stocks for
convenient distribution to C. & S.
adjust
price-earn¬
to
reference
With
Montgomery—Tucker,
Anthony & Co., 120 Broadway,
New York 5, N. Y.
ings ratios, the average electricCommonwealth & gas utility stock is currently
Southern would also issue new selling at close to 15 times earn¬
Better grade issues sell at
stock of its own (8,979,234 shares). ings.
The
common
stocks
of
the about 15-20 times earnings and
small
or
unseasoned
issues at
four northern companies and of
about
10-15
times.
Common¬
Commonwealth
would then be
wealth's northern companies, with
distributed to the present stock¬
the exception of Southern Indiana
holders
of
Commonwealth, the
G. & E., might be entitled to pricepreferred as a class getting 85%
and the common 15%.
The dis¬ earnings ratios of 14-15, after a
For
For
Each
Each
Share
Share
Pfd.
Com.
a
•—Sh are s—
Edison
—--—
Illinois
Central
—-
Indiana
Southern
Commonwealth
&
Southern
and
profits taxes (together
earned about $11,400,000
year
paid excess
tax savings resulting' from
l.ond financing, emergency amor¬
tization, etc.) of about $22,200,000.
After the war, if excess profits
taxes are eliminated, about half
the latter amount would be saved,
Increasing net to around $22,500,-
Avith
1)00
The com¬
basis.
1944
the
on
lose some earnings due
readjustment of the industrial
load
(which was benefitted by
heavy war activities in its areas),
by increased income taxes on the
northern companies when report¬
ing individually, etc.
However,
there will doubtless be large de¬
pany may
rates
residential
low
compared
as
tional average
—
the
tation
New
companies
sues.
;;;7'":>
.
The southern group may,
how¬
ever, within a few years establish
a better record of earnings.
Eco¬
nomic trends favor the South and
tive
been revised in favor of this terri¬
year
several
(perhaps
years hence) by the local manage¬
ments of the different companies
have
been
The SEC has estimated that fu¬
ture
income
net
be
might
ex¬
$17,700,000,
'"while President Whiting consid¬
ered $20,000,000 a fair estimate
and Jay Samuel Hartt, consulting
engineer for the company, esti¬
mated prospective annual consoli¬
pected
to
average
dated net income
as
high
$24,-
as
708,000.
On the basis of these
estimates, and applying varying
price-earnings ratios, we would
arrive at the following estimates
for
the
future
and
ferred
By—
GEC
Whiting
Hartt
...
....
of the
pre¬
stocks:
12 Times Earn.
Earn, Est.
,
value
common
just
With allowance for this im¬
provement an average price-earn¬
ings ratio for both northern and
southern
companies
of
might
14
Co., Carondelet Build¬
Serfdom—Reprints of
Digest condensation
of the book by Friedrich A. Hayek
Lichtenstein
Wall Street,
Statistical
for
Handbook
Bonds
too
tant future.
result
in
to
around
La Salle
&
Street, Chicago 3, 111.
Discussion
Hardware
of
Corp.
American
-r-
Kaiser & Co., 20 Pine
com¬
York
current
price
San Francisco
tageous for
common
to switch into the
Metals,
bulletin—Sills,
approved
Chicago 4, 111.
stockholders
Federal
a
majority vote of
and
Court;
confirmed
and
report —
Street, New
there
by
is
a
al¬
Inc.,
Also
—
Minton
South
209
Inc.
La
is
report
a
Common
Pfd.
Common
$122
$.96
$142
$1.12
138
1.08
161
1.26
170
1.32
198
1.54
ways
or
the
change
possibility
until
the
of
an
last
upset
appeal
period has passed.
Ashland
pany
—
Oil
&
continuation
to
Com¬
of
major
Intermediate reaction
trend.
indicated
by industrials. Ob¬
stacle present
about 170-172.
There has been
some
hesi¬
tation in the past few days
but the main trend is still up
and there doesn't
seem
to be
anything in the market pic¬
ture, at this writing, to point
to any change.
Minor trend
however
Last
points down.
(May 31),
the previous
column, the Dow industrials
were
nibbling at the 170 fig¬
Thursday
when you
saw
ure.
The rails
58.
On
were
just across
Tuesday and Thurs¬
day the volume was respect¬
able, somewhere near the two
million mark. Friday's action
showed
a
change. For ex¬
ample Thursday's and Tues¬
day's highs in the industrials
the
poorly
Friday
seemed
rails,
which closed
.Thursday, shot up
and
crossed what
to become an obstacle
on
Wednesday. On
Tuesday the rails made a high
of 58.86. Thursday's high was
established
58.74, but the close
was
57.90.
quick rail recovery point¬
ed
to
Securities
—
including
better
Bulletin
proved
in
prices as was
the - subsequent
market action.
New York 5, N. Y.
a
was
that
-
equally
the rail
significant
not
action was
memo¬
duplicated by the
industrials.
Dominion
Their
advance
40
the basis of the minor danger
randum
Refining
By WALTER WHYTE
the
'
organization,
Casualty Co.
Maryland
Says—-
It
on
Whyte
5, N. Y.
Street,
14 Times Earn.
Pld.
Riverside
City of Montreal, Financial Re¬
available
Walter
Friday they managed to cross
the 59 figure by 6c and closed
at 58.89. It was obvious that
way,
Co.,
&
Salle
and
on
Laid, Bissell & Meeds, 120 Broad¬
Current
Barbara
Sacramento
Chicago, Milwaukee, St. Paul &
Railroad—Complete
ar¬
bitrage proposition—Sutro Bros,,
& Co., 120 Broadway, New York
Christiana
preferred stock.
However, the plan still has to be
by
Co.
&
circulars
Pacific
5, N. Y., and Russ Building,
4, Calif.
Ampco
are
Cement.
advan¬
stockholders
developments—Lerner
available
Kingan
President Lines, Ltd.
statistical
Timely
Steel—Bulletin
&
9, Mass.
Also
—
attractive ,position
common,
seem
Eastern
and
Co., 10 Post Office Square, Bos¬
ton
American
Iron
recent
on
—
Tomorrow's Markets
But
position and possibili¬
ties—Straus & Blosser, 135 South
the
would
memoranda
are
Steel
Santa
Fresno
seemed to have become tops.
Central
-
—Current
the
It
available
Lukens
American Barge Line Company
for
1.
.
Corp.
with
$1.54
pared
Also
on
estimated
"break-up"
prices for the preferred of $122198, compared with current price
around $107; and a range of 96£
Brothers,
Street, Philadelphia
2, Pa.
Co.
Goodwin, 265 Montgomery Street,
San Francisco 4, Calif.
■
■
not
Walnut
1529
Broadway, New York 6, N. Y.
Also available is an analysis of
Public Service
G. Brooke Iron—Descriptive
E.
Ill
England
Co.,
Building, Boston
memorandum—Buckley
13th
annual edition—Ira Haupt & Co.,
New
Homsey
Pont,
Bank
9, Mass.
New
—
The estimates in the above table
the
in
Shawmut
New York 5, N. Y.
Municipal
1947—
Wharf Co.—Descriptive
Boston
circular—du
99
Co.,
&
of common-'Walston, Hoffman &
attainable
Boston Terminal 3V2S of
to
S.
Insurance
Fire &
Security
Analytical report describing reor¬
ganization status and proposed
plan—Greene
&
Co., 37
Wall
Street, New York 5, N. Y.
Smith
M.
A.
dis¬
be
optimistic.
quite
tory;
from
Readers'
Jersey
standards,
for relatively unseasoned is¬
market
Supplement
ing, New Orleans 12, La.
—B.
Company,
Insurance
Marine Insurance Company.
Consolidated
Read
Phoenix
Company, and Springfield
to Louisiana Bond Record of 1938
Investment
Company,
Company,
York, N. Y.
New
Hanover Fire Insurance
Providence Washington Insurance
Quo¬
Street,
Front
46
Bureau,
—Information
with the na¬
that is one rea¬
Franklin Fire Insurance Company,
paper
offer is available—National
with
even
ten
—
Oakland
—
Utility break-through points
—
Associates,
Group
Employers*
special free trial
bound issues—a
four
present
and
volumes
bound
the
—
total of
a
or
for the complete serv¬
which
includes
two
cloth
Company
Insurance
Boston
a year
ice
the freight rate structure has
post-war
Analytical memorandum — Mackubin, Legg & Co., 22 Light Street,
Baltimore 3, Md.
Also available are circulars on
$144
mands for power
some
111.
operating
and
one holding company — compris¬
ing the "package" to be received
by Commonwealth stockholders,
an average price-earnings ratio of
12 would seem reasonably in line
combined
to
for the automo¬
industry in Michigan, and
estimates for a
"normal"
5, N. Y.
$72 each per year,
extremely
five
the
For
taxes.
&
and Pressurelube — Ben¬
Spanier & Co., Inc., 105
South La Salle Street, Chicago 3,
Monthly Stock and Bond Sum¬
paradoxical as it seems, for
present high excess profits
son,
San-Francisco
Monterey
Wall Street, New York
Peck, 63
maries—May be had at a cost of
subsidiaries'
are
West Point Railroad
&
—Descriptive circular—Adams
Engineering, Mohawk Li¬
&
Salle Street,
'
La
nett,
price-earnings ratio of only about
10-12, especially as it will still be
a
holding
company
system —
though an integrated one, con¬
forming to SEC requirements.
Common wealth
Commonwealth & Southern last
Atlanta
on
queur,
favorably
less
group,
Air
capitalized and with a poorer
earnings record, might merit a
$3.00
about
Cash,
.008
.008
.0016
.0016
.04
1 03
1.03
.206
.206
5.15
,.1——
Power
Consumers
Ohio
southern
Circulars
—
Inc., 120 South
Chicago 3, 111.
Colorado and Southern, Interstate
The
seasoning.
market
little
follows:
Post-War
For
stockholders.
tribution would be as
Moore
Teletype NY 1-928
Private Wires to Principal Offices
4%.% cumulative convertible pre¬
ferred stock—A. G. Becker & Co.,
American Economic Outlook, by
A.
Trade
to send
understood that the firms mentioned, will be pleased
interested parties the following literature:
is
of
"New York 5, N. Y.
COrtlandt 7-4150
Recommendations and Literature
the recapitalization
Exchange
(Associate)
York Curb Exchange
New
on
the
current
budget—
Securities Corporation,
Exchange Place, New York 5,
Memorandum discussing
possibilities
of
the
(Continued
investment
on
page 2507)
refusal
signal.
were
to
But while the rails
and the
in the forefront
industrials
were
laggards, a
group capie forward
claim the spotlight. The
new
Associated Gas & Electric issues
Associated Electric 5s 1961
FOR
BROKERS 6-
DEALERS ONLY
Seatrain
American Gas & Power 3-5s & 3.6s 1953
to
util¬
ing much of anything since
last April,
quietly became ac¬
tive.
'v' v; :A:
Class "A" Stock
Portland Electric Power 6s 1950
an
average there is lit¬
exciting in the utility ac¬
tion. Up to last April it was
almost pegged at the 28 fig'ure. Fluctuations were minor
As
request
on
do¬
ities, which haven't been
Lines, Inc.
Memorandum
is
tle
Gilbert J. Postley & Co.
29
BROADWAY, NEW YORK 6, N. Y.
http://fraser.stlouisfed.org/
I
Federal Reserve Bank of St. Louis
Direct
Wire
to
Chicago
J. W. GOULD & CO.
120
Broadway, New York 5, N. Y.
Telephone: COrtlandt 7-4550
.
Teletwno: NV
1-2312
and interest in the group
(Continued
on
page
was
2527)
THE COMMERCIAL
Number 4392
yolume 161
& FINANCIAL CHRONICLE
2507
I
We
pleased
are
to
WITH THE TERMINATION OF THE INTEREST OF THE ESTATE
OF
announce
J. S. BACHE AND THE WITHDRAWAL OF CLIFFORD W. MICHEL
JAMES H. MURPHY
AS
CONRAD TUERK
MAY
A
PARTNER,
31, 1945.
BOTH
THE
AS
NAME
OF
OF
THE. CLOSE
THE
FIRM
OF
OF
J. S.
BUSINESS
BACHE & CO.
IS CHANGED TO
WILLIAM R. MEE
WALTER F. NORRIS
have been admitted
BACIIK
general partners
as
MEMBERS
NEW
LEADING
36
WALL
CfiUTTtnDtn & Co.
j
1]*" IJorL
STOCK
AND
Co.
COMMODITY
STREET,
UPTOWN
Stocl (CiJtanyt BnJ Chicago Sloch
tSi,
YORK STOCK EXCHANGE
AND
OTHER
1
EXCHANGES
NEW YORK
OFFICE, CHRYSLER
'
5,
:
N. Y.
BUILDING
I
•
209 South La Salle Street
LOS ANGELES
14, CAL.
Walter W. Cruttenden
June
LINCOLN 8,
Chicago 4, Illinois
Frederick R.Tuerk
John B. Dunbar
NEB.
THE FIRM OF BACHE & CO. IS COMPOSED OF THE
Anthony L. Godie
1, 1945 .*;/
HAROLD
L.
MORTON
F. STERN
BACHE
GEORGE
JOHN
SAM
J. RYAN, JR.
ARTHUR
F.
C. RYAN
WILLIAM
REID
FRANK
T. RYAN
SAM
JAMES
June 4,1945
H. SAMPLINER
JAMES
A. CHARLES SCHWARTZ
B.
F. SCHULTZE
CHARLES
ROSSBACH
BRODERICK
J. SMITH
WALTER
FAYNE
A.
LAURENCE
ALFRED
WEISS
»
.
The partners
FOLLOWING:
GENERAL PARTNERS
HUGO
A. COREY
J. LION
LIMITED PARTNERS
of
L. BAKER & CO.
CHARLES
A.
BLACKWELL
CHARLES
R.
BLAKELY
ADRIAN
C.
JOSEPH
*
ISRAEL
M. RYAN
RUSSELL E. SARD
,
ADOLPH
WOOLNER
Established in 1H96
PRIVATE TELEGRAPH SYSTEM CONNECTING
be
shall
name
Betts, Borland
Co.
&
AKRON.
CINCINNATI
MIAMI
ALBANY
CLEVELAND
MILWAUKEE
SCHENECTADY
ATLANTIC CITY
COLUMBUS
MINNEAPOLIS
SCRANTON
BINGHAMTON
DETROIT
NEW
BOSTON
ERIE
OIL
ANTONIO
SAN
SYRACUSE
HAVEN
TROY
CITY
TULSA
BUFFALO
FORT
CHARLOTTE
GREENSBORO
RALEIGH
WASHINGTON
CHICAGO
KANSAS
ROCHESTER
WILKESBARRE
WORTH
PHILADELPHIA
CITY
TORONTO. CANADA
Members
New York and
CORRESPONDENTS
OFFICES
no
firm policies.
or
AND
BRANCH
Betts, Borland & Co. There will fce
change in personnel
OFFICES
BRANCH
that hereafter the firm
announce
Chicago
UTICA
LONDON,ENGLAND
CORRESPONDENTS
OTHER
IN
PRINCIPAL
CITIES
'
Stock
-.v":J
Exchanges
JUNE
BORLAND BUILDING
ARTHUR
South
La
Salle St.
FRANCIS
JOHN
Chicago 3
v
H.
THOMAS
Tel. Central 1474
JOHN
P.
'
;•
/
v' '
"
'
'
•
BETTS
M.
CHAUNCEY
111
'
1, 1945
BORLAND
B.
BUTLER
P.
QUINLAN
Also
HENDERSON
WISE
ern
a study
first 4s of
available,
Indiana
of South¬
1951
and
& South¬
eastern ref. 5s of 1960 and income
Chicago,
Terre
Haute
£s of 1960; and a bulletin of Re¬
search
Comment
several
on
WE
cur¬
PLEASURE
TAKE
IN
ANNOUNCING
THAT
<*3'
J*
rently interesting issues.
We
are
pleased to announce
the formation of
Industries
General
S.<3
MICHEL, A.U.S.
CLIFFORD W.
CAPT.
i
iVvN
Co.—Recent
report
—
Dolphyn,
Mercier, McDowell
&
Buhl Building, Detroit
HAS
DAY
THIS
ADMITTED
BEEN
'
26, Mich.
BROS.
GOLD
*'
1
AS
Also available
a
A
GENERAL PARTNER
£-5383 *
—Adams
■■
to transact a
Investment
Securities.
*
.
GOLD
BENJAMIN
GOLD
.
Chicago 4, 111.
<<
JUNE 1,
•
-
Mont
*
Dealer-Broker Investment
sachusetts
Laboratories
"A";
We
Mas¬
Light $2
(Continued from page 2506)
Co., 231 South
Chicago 4, 111.
'Also
available, a memorandum
the debt reorganization plan
Salle Street,
Province of Alberta.
Co.—Descriptive
circular—J. F.' Reilly & Co., Ill
Broadway, New York 6, N. Y. _-i>
Also available are circulars on
Howell Electric and Punta Alegre
:
Consolidated Edison Co. of New
(fork—Analytical
study—Kidder,
Wall Street,
Co., -17
Slew York 5, N.
Y.
way
Foundation
Stoker;
&
.Elk Horn Coal Corporation and
Lawrence Portland Cement Co.—
possibilities
appreciation in these
attractive
for
price
two
industrials—Morris
Co., 42
Broadway,
Cohon
&
New York
4.
!
Garrett Corporation—Brochure
statistical information, avail¬
and
dealers—Fred W. Fairmaii
South La Salle Street,
Chicago 4, 111.
fe
Co., 208,
General Cigar Company,
Dodge,
Des
Southern, Railway
One-page analysis
—
Moines
Compan y
&
—
Comstock &
pleased to announce that
WILLIAM F. PARVIN
Alabama
Department of the
Bond
Hardware;
City National Bank & Trust
of
memorandum on outlook
& Co., 60 -'Beaver
New York 4, N. Y.
Detailed
—H.
Inc.—
Co.
City
has become associated
Maine; Buda Co.; Federal
^Machine & Welding; Gleaner
Harvester;
Liberty
Aircraft
; Products;
Lamson - Sessions;
with our firm
ROE & COMPANY
Berkshire Fine Spinning, Bow¬
Inc.;
Iways;
New Jersey
FROST
Worsted;
NATIONAL
SAN
Air-
American Window Glass,
BANK
ANTONIO 5
BUILDING
"
Bell Teletype—SA 70
Western Union Phone
Garfield 8338
..and P. R. Mallory.
June 1,1945
Southern Utilities Com¬
pany—Detailed discussion of in¬
teresting situation—G. A. Saxton
& Co.. Inc., 70 Pine Street, New
York 5, N. Y.
^
f Iowa
circular—C. E. de Willers
120
Kingan
Company—Descriptive
& Co.,
Broadway, New York 5, N. Y.
Also available is a
on
Hentz
Street,
Kansas
; ton &
able to
N. Y.
Fort
£
YORK
formerly Assistant Manager of the
Riley
Mills, Inc.;
Mohawk Rubber Co.; TACA
on
NEW
are
MR
Douglas
Shoe; Hertford-Empire; Maine
Central Pfd.; Moxie; Southeast¬
ern
Corp.; United
Piece Dye
Works; Detroit Harvester; Bos-
ser,
Sugar.
Report
EXCHANGE
Motors; Scovill Mfg.;
American
La
Power
preferred; Majestic Radio; Magnavox Corp.; Electrolux; Brock-
Recommendations and Literature
&
SJOCK
1945
Great American Industries;
'*eabody
YORK
of
speculative possibility in the pre¬
ferred stock of a public
utility
Du
'
-
>f the
NEW
MEMBERS
j 61 BROADWAY
way,
1945
'
>n
M
CARLM. LOEB, RIIOADES & CO.
Motors—Circular
Co., 231
South La
company—Ward & Co., 120 Broad¬
New York 5, N. Y. Also
available are late memoranda on:
SAMUEL GOLD
■'
"v*
Interstate Power Co.—Study
.
IRVING
June 1,
&
Salle Street,
general business in
*£>. '
FIRM
'in
Elec.
Howell
OUR
;
Street, New York 5, N.-Y.
Telephone: HAnover
IN
report on Na¬
tional Stamping Co.
William
15
,
-
,
,
Macfadden
Sterling Engine.
memorandum
Pub.
Inc.
and
Laclede - Christy Company —
Memorandum available
Ilerz S
& Co., 170 Broadway,
<>
*•
.
ORr ,
(Continued on page 253^)
*
The
Anglo-Chilean
SPECIALISTS
Exchange Agreement
V
kh^MtMA
in
"Blocked" Payments Similar to Peru¬
Published in Last Week's "Chronicle". Provides
That Payments Between the Two Countries, Other Than Necessary Pay¬
ments in Chilean Pesos, Shall Be Made Only in Sterling.
Since
1929
vian
./■/
■ ■
30,1940 Provides for
Pact of Oct.
Real Estate Securities
THE BEST
Agreement,
earlier example of the bilateral
Another and
INVESTMENT
to
Incorporated
\
HAnover 2-2100
Broad Street, New York 4
41
17, 1942, and published in last
week*s "Chronicle" (May 31, 1945,
Association
York Security Dealers
blew
Members
2398) is given below.,. It is
Oct. 30, 1940 and provides
essentially for the "blocking" of
all payments between Peru and
the
"sterling
area" in
British
page
dated
Real Estate Securities
York Real
Amendments to State of New
Sterling
For
SHASKAN & CO.
Bell Teletype
deals with
the
NY 1-953
default
the Act took place after a
in¬
denture.
The law now provides
that ihe Trustee of any mortgage,
the holders of 25% in principal
in
Certlfloatea
and
TITLE CO.
Mortgages
under^of
reorganizations
Previous
buy and Sell:
the terms of the mortgage
amount; the mortgagor or owner
property, whether or not a
of the
PRUDENCE AND
present a plan
for
the
reorganization of such
mortgage, which may provide for:
(1) the extension of the maturity
of the mortgage, .deed of trust or
indenture and the debts secured
default exists, may
REAL ESTATE BONDS
(2) The modification of
the provisions for interest, amor¬
tization or sinking funds; and (3)
such other changes, modifications
or amendments as may be fair and
feasible and for the best inter¬
ests of the security holders.
No
the
I
Dlgby 4-8J70
Broadway; N.Y.-O
Teletype NY 1-1042
—
FIRM TRADING
MARKETS
—
5/50 W.S.
Ambassador Hotel
B'dway Motors Bldg.
4-6/48
165
principal amount of the
outstanding securities shall con¬
stitute
a
presumption that the
plan is fair, feasible and for the
best interests of the security hold¬
4/56
B'dway Bldg. 4^/58
J. S. Strauss & Co.
St.,
Montgomery
Bell
Grew
and
Francisco
San
Teletype SF 61 & 62 V...
Says U. S. Not in
"Front"
Anti-Russia
Joseph C. Grew, Acting Secre¬
tary of State, has assured a dele¬
has
States
United
the
that
Congressmen
of
gation
"become
not
part of an Anglo-American front",
according to Associated Press re¬
ports from Washington, May 31.
Representative DeLacy of Wash¬
ington, accompanied by Represen¬
tatives Coffee of Washington, Pat¬
terson of California and Bailey of
West
Virginia, submitted
a
letter
signed by the four and Represen¬
tatives Marcantonio, Dickstein and
Celler of New York; Green and
Weiss of
Illinois,
Pennsylvania, Sabath of
Patrick of Alabama and
Hedrick of West Virginia.
The
which
contained
letter
they said
proceedings hereunder
the rights of the parties here¬
All
to, including the hearing, the final
order determining the plan of re¬
organization embodying such
modifications, the time and method
for the persons affected by such
plan becoming parties thereto and
the
right:.of appeal from any
order, shall be governed by sec¬
tion 122 hereof; except that if the
reorganization shall become effec¬
tive it shall be without prejudice
to
the
particular
any
holder of such securities who has
duly dissented therefrom to have
the court determine the cash value
of such securities
owned
on
or
as
he may have
the
before
date
of
share of such amount
as
a
tive.
becoming
binding
all the security holders.
Upon
the
order
effective the plan shall be
questions
Under
date
of
June
1,
1945,
re¬
Lexington Avenue & 42nd Street
criticism of American
foreign policy.
These asked if
there had been any departure by
Corporation, owner of the Chanin
Building in New York City, pre¬
sented a plan for the reorganiza¬
tion of the existing funded debt
which matures September 1, 1945.
The funded debt was reorganized
cent
the
arose
press
United
States
from
its
po¬
"achieved
by
President
Roosevelt, as a disinterested third
sition,
which
could mediate in
whatever differences
might develop between our two
great allies"; had our policy on
the Polish question and on other
Eastern
European
questions
changed "since President Roose¬
velt's death," and had "old antiSoviet predjudices caused a shift
power
and mollify
"since
Roosevelt's
American
death
from
frendliness toward
Russian ally?"
-
our
:n
July
1934.
It
consisted of
First Mortgage
(a) All required payments under
said plan have been met to
the end that all basic and ac¬
Second
Third
Mortgage
Mortgage
-
—....
$11,855,000
Since the consummation of said
prior plan of reorganization, the
Chanin Building ha^sbeen oper¬
ated
unutr
been
the first, second
and
third
mortgage inden¬
tures and during the period
under
from
1935
to
has
annum
>:
1
1939, inclusive,
interest of
additional
been
1% per
paid
the
on
first mortgage bonds.
On Sep¬
tember 1, 1944 an additional
% % interest was paid on the
first mortgage
bonds.
Holds
for
Central de
Banco
for
rates
quote
based
Chile
sterling
the official middle price
on
gold in London (today) 168/6d
fine equivalent to 4.02y2
per ounce
the
£)
rates
sponding
and the
for
corre¬
dollars
fixed
by' the Chilean authorities.
3. With
the
exception of
the
payments refererd to in the final
paragraph of this clause all ster¬
ling payments to Chile from
resident in the
sons
be made
shall
per¬
sterling
to:
area
■*'
--
The
Special
Account of the
Banco
Central
de
Chile
at the
Bank of
England
the Special
to
or
the
Banco
Accounts of
Central
de
Chile
with their correspondents in the
(Continued
the
on
2525)
on page
Anglo-Swedish Monetary
outstanding first mort¬
gage bonds have been reduced
to $6,059,500, the amount now
outstanding.
;
|yy'-:
,.
(c) The reserve fund of $100,000
has been set up and is now
held by
York
: ;
the Continental Bank
Company
Trust
&
y
Trustee
as
first mortgage
.
t
of
New
-
Revival of Nazi "Swaps"
a
York "Herald-Tribune" of May 20,
Dickhuth calls attention to the implications of the
Anglo-Swedish monetary agreement of March 6 (published in the
"Chronicle" of May 17, page 2165) which, he states, has "an append¬
In
H.
the
in
article
an
New
Eugene
protocol" that would require Sweden to accept payment for her
ed
export surplus to Britain in the form of blocked
These balances can be used, he€>
states, "only for the purchase of
British
goods
or
merchandise
from the sterling area."
.
According
signed
monetary
agree¬
6
March
on
"the
article
this
to
Anglo-Swedish
publicized at the time
and
hote-
as a
worhty forward step in immedi¬
ate
had an
appendix which
trade,
post-war
published
in
criticized
been
House of Commons
approach
has
British
the
the nearest
as
bilateralism
to
un¬
bar¬
or
"Since the whole basis of Bretton
Woods, Dumbarton Oaks and
sterling balances.
—
multilateralism,"
is
agreements
Mr.
comments
discovery
Dickhuth,
"the
worth some study.
is
It should be added, however, that
the
trade
-
terim
Stockholm
is
an
the
covering
pact
struction
between
agreement
London and
in¬
recon¬
it may,
later in
favor of an overall world plan."
Concerning
the
unpublished
"protocol," it is stated that, "to
period,
therefore,
this
from
the
specific
case,
it
reading of Swedish
a
after conclusion
that
newspapers
of
and
discarded
be
reconstruct
seems
ter."
the
under
indenture for
the benefit of the bondholders.
,
1|| Accord
ment,
(b)\The
the
agreement
Government
issued
a
Stockholm
.statement
other
envisaged
international concerning an appended protocol
(d) There is no default in the
Which • inquirers Vin
Parliament
payment of ground rent, taxes,
/
or other fixed charges against
y
;
2% per annum on second labeled 'secret.'
the property.
i/vi mortgage. yvy
11 "This
additional
document,
.
(e)
No dividends have been paid
[
on
the stock, nor have
salaries
been
any
(e) Basic
y;-'y..|,(■
gage.
(f)
: c
NEW PLAN OF ORGANIZATION
The
summarized
is
as
follows:
1, 1965.
■
15%
20%
50%
Chanin
Iy|./|:,||/v:y
(g) 1%
on
first mortgage.
Additional
sinking fund
:
''■>.
first mortgage.
on
Sinking
fund'on
second
mortgage.
(i)
as
The
by First Mortgage
"
by Second Mortgage
by Third Mortgage
by Chanin Interests
Management, Inc. to
*
continue to manage and op-
plan,
outlined
as
fair and reasonable.
seems
believe,
rightfully
above
It,
treats
,,
we
first
mortgage trustee for dis¬
in
accordance
with
plan.
Income after operating expenses, ground rent
■
and
Real
Estate
Taxes to
be
(a) Basic
cumulative
*
4% per annum on
interest at
first mort¬
(b) Cash equal to 2% of the out¬
standing first mortgage bonds
for a sinking fund.
(c) An
annual
serve
contingency
Re¬
of $25,000 until fund of
$250,000 has been established.
(d)
Basic
cumulative
interest
at
to
up
party.'
the
text
of
the
agreement:*
that
appears
consideration
to
would result in
able
for
new
plan
$631,857.66 avail¬
distribution
an
under
the
amount sufficient to
'y/
Pay:
Provide
on
the First
$189,907.66
Mortgage
for
First
Mortgage Sinking Fund
on
the Second Mort¬
1%
Interest
on
the
Third
Mort¬
gage, and
$25,000.00 for the Contingency Re¬
serve
Fund.
blocked
of
;
ster¬
only
reported
which
either side believes is exportable
surplus, permitting an approxi¬
cover
list
a
of
indication
goods
of
amount
the
party is willing to
accept.
The criticism of members of Par¬
liament is
the
no
prompted by
doubt
recollection
of
■
the
pre-war
Nazi swaps of aspirin tablets and
Zeiss lenses for specified foreign
raw
materials.'
I ;" 'The Financial News.' London,
of April 25, remarked that 'quite
clearly, if both governments in¬
tend
to deliver the
goods which
they informally said they hoped
to deliver, the
arrangement comes
as
near
a
bilateral trade pact—
whether
or
not it was concluded
formally—as anything this coun¬
try has
ever
"Under
$29,625.00
for
Second
Mortgage Sinking Fund
main
would
Sweden
"The appendix is also
to
gage
Provide
created by
by the volume
of her exports to Britain.
mate
warranted
goods
certain
published
amounts
ling limited
either
plan of 1934.
to be designed to
exporting
given amount to the other
It thus nullifies in effect
a
previous impressions,
it
2% Interest
gage.
of
reorganization
5% Interest
in following order:
used
tion
but
give
both governments' 'inten¬
presses
mortgage bondholders better than
..
the
representing no binding ob¬
ligation on either country, ex¬
the
\ ,1
erate the property.
•
" ; ,
all parties concerned. In submit¬
(3) All the income from the build¬
ting the plan, the owners have
ing shall continue to be con¬
shown
the
Net
Income
before
trolled
by the existing seTrust Indenture Charges for the
questration agreement, under
six
months
ended
January 31
which the net rental income
1945 to be $315,928.83.
Projecting
is is paid each month to the
this figure *, to
an
annual
basis
first
tribution
while
accept
remaining income for
sinking fund on the
first mortgage.
' //
Any
additional
(2) The capital stock continue
presently held:
15%
...
,
tive interest
(h) 1%
(1) Extend the maturity date of
each mortgage to September
;
Additional'- non-cumula-
1%
plan of reorganization
new
interest at
third mort¬
cumulative
1 % per annum on
;
paid to officers
directors.
or
by Chanin Management, Inc.
uie supervision *uiu couiroi
has
interest
cumulated
paid
a:
$6,392,500
2,962,500
2,500,000
the leasehold owner,
provided in said plan, with the
following results:
; v,
condi¬
tion for declaring the plan opera¬
sterling
in
settled
and
converted into
shall -be
as
the presentation of the plan of
reorganization pursuant to this
section,
and providing for
the
payment or securing his ratable
upon
out of
of
right
sterling and Chilean
other than
pesos
.
currencies
in
expressed
ily
Continental Bank & Trust
Directors of
the
ers.
155
of
sent
of
N. Y. Majestic Corp.
The affirmative con¬
the holders of two-thirds
ity holders.
W.S.
Midtown Enterprises 5/64
plan shall be approved unless the
court, after such hearing shall de¬
termine that it is fair, feasible and
for the best interests of the secur¬
|
payments necessar¬
All other
The
2.
shall
Company of New York, as super¬
vising Trustee and the Board of
thereby;
SIEGEL & CO.
in Clause 2.
with cash offers for
and the release of the security under the
;-;y. ■
/y
under par
mortgage
down
sterling on the* basis laid
reorganization plans, the other deals
trust mortgage.
We
State of New
effected)
been
Dlgby 4-4950
EXCHANGE PL., N .Y.
40
<
sarily be made in Chilean pesos
shall be settled by the sale of
(The Burchill Act under which real estate reorganizations have
became effective April 16, 1945.
One amendment
York
S/ock Exchange
York Curb Exchange
Memberi New YorIc
/Members New
the Real Property Law of the
Two amendments to
.* / ;
Payments which must neces¬
Plan
Building First to File Reorganization
Maturing Funded Debt Under Amended Law
Owners of Chanin
shall be settled in
• - •k ■ -V
area
sterling.*
the
and
Chile
between
ments
Property Law Should Have Favorable
Effect on Real Estate Securities
■■■■/.lrit-yrm
and financial pay¬
All trade
1.
agree¬
basis of the official rates fixed
in Londony >. y^y/|-'';!/y
dollars to
Pounds Sterling.
exchange
American countries, similar
Great Britain with Latin
that made with Peru on Nov.-e>:
ments made by
Seligman, Lubetkin & Co.
IN THE WORLD
T?inra
•Thursday, June 7, 1945.
CHRONICLE
& FINANCIAL
THE COMMERCIAL
entered
the
into.'
agreement
main
Sweden has undertaken to accept
payment
for
her
export
to Britain in the form
surplus
blocked
sterling balances, which, in turn,
can be used
only for the purchase
of
British
from
the
goods
or
of
merchandise
sterling area."
Volume 161- 'Number 4392
THE COMMERCIAL. &
FINANCIAL CHRONICLE
f 2509
ADVERTISEMENT
SAN FRANCISCO TRADING IN NEW YORK STOCKS
:'
■
,,'
■
_
' '
*
.
.
-■
■'
•
',n
,
,
■
One hundred and
forty-eight stocks traded on the New York
Exchange are also traded on the San Francisco Stock
Stock
Exchange between the hours of 10
A list of these stocks is ovoilabie
t-
,
Quotations and executions promptly handled
•/'•••
and 5:30 p. m.
a. m.
,
''
NOTE—From time to time, in this space,
there will appear an article which we hope
will be of interest to our fellow A mericans.
-
This is number
(E.W.T.)
eighty-nine of
series.
a
SCHENLEY DISTILLERS CORP., NEW YORK
upon request
over our Direct Private Wire
"Necessity"!
Kaiser & Co.
MEMBERS
The late Dr. Charles P. Steinmetz,
HEW YORK STOCK EXCHANGE
NEW YORK
20
STREET
PINE
CURB
EXCHANGE
'
SAN FRANCISCO STOCK EXCHANGE
YORK 5
NEW
•
1500
RUBS
SAN
FRANCISCO
noted General Electric
BUILDING
made
scientist,
4
the
Company
statement,
"Coopemtiori is not a sentiment.
an economic necessity." What
It is
Interviews Chairman of United Nations Committee
a
world of realism there is in that
statement. And it comes alive to¬
BANKERS
INVESTMENT
day—when all the affiliates of this
Members New York Stock
Other
Schenley
Exchange and
UNDERWRITERS AND
DISTRIBUTORS OF
in which
from
BROKERS OF BONDS, STOCKS, COMMODITIES
•
Home Office Atlanta
Investment Banking Syndicate Boosts
Bond Sales in Southern California
ANGELES, CALIF.—The Banking and Investment Division
pects of the charter with Sir A. Ramaswami Mudaliar, Chairman of
the India delegation and Chairman of the Conference's full Commit¬
tee on Economic and Social Cooperation.
sales for the Southern California
the total
has
erected
The "Investment Banking
Syn- *■
dicate" war loan operation origi¬
fornia, Los Angeles; William Paul,
nated in Los Angeles at the beSecretary, Los Angeles Stock Ex¬
change; Donald Royce, Blyth &
Co., Inc., Los Angeles.
Syndicate Manager: H. B. Marr,
Broad Street Sales Corporation,
sideration
belated effort was made
ago a
the
Angeles; Frederick
W. - Koenig,
Young & Koenig, Los Angeles;
Louis
Meyer,
Stern, Frank
&
strike from the books the
old
bimetallism
Gerald Goodman
President.
only
an
proved
the
by
Committee,
it
of
the
the
Nevada
to
that
United
the
The Senator would
purpose
holds in
use
excess
It
is
also
Senate
pending expira¬
then
Fund
and
the
power
to ac¬
newly-mined domestic sil¬
Republicans agreed to
The
the Silver Bloc in getting
the
silver
renewed,
the
authority tem¬
in exchange
Silver* Bloc's help in
de¬
priving the President of his other
emergency monetary powers.
for that
against outstanding
certificates.
the
upshot of the deal was that
the Silver Bloc not only obtained
The
silver
a
renewal
power,
increase
of
the
but got as
in
desired
silver
well both an
the price of domestic
recalled
by members
of the United States
delegation at
newly-mined silver, and the drop¬
that more
ping out of any termination date.
That is, the silver subsidy became
Bretton Woods last
than
a
score
time signed
a
of
year
senators
at
that
letter to President
.
member
a
of
the
permanent.
Only one or two Re-
Federal
Subsequently, the syndicate plan
adopted by a number of
states including New York. Rob¬
has been
Moulton
ert II.
&
Company,
a
of R. H. Moulton
former
Governor
of the IBA, is State Chairman and
of
Goodman
M.
Lord,
Abbett & Co. is Vice Chairman of
the
committee.
state
there
is
addition
In
Investment Syndicate
an
Committee which is as follows:
"co,"
guage—in anybody's language.
following
Well, the
big
figures
saved, last year, by cooperative
salvaging—nearly 21 million
pounds of cartons. In one threemonth period, ended February 1st,
this year, our Schenley, Pennsyl¬
vania plant alone salvaged more
than 1,300,000 pounds, and also
handled
additional
an
Witter, Chairman, Dean
Company, Los Angeles;
J.
Bogardus,
Bogardus,
Frost &
Banning, Los Angeles;
Willis H. Durst, Wagenseller &
Guy
DarreH
Durst, Inc., Los Angeles; Rudolph
Eichler,
Richards
Eichler &
Hill, Hill,
Los
Angeles;
Bateman,
&
Frederick
Co.,
Koenig,
W.
Young
&
Koenig, Los Angeles; Robert Par¬
Company
Pacific
sons,
Cali-
of
Douglass & Co., Los Angeles; Willian
Wells, Maxwell, Marshall &
Los Angeles; Guy Witter,
Co,, Los Angeles;
A1 Purkiss, Walston, Hoffman &
Co.,
Dean Witter &
Goodwin,
.
The
Act of July 6,
supported it.
the
became
deal
C.
Wesley
Hall,
Co., San Diego.
and paper
mills,
the
Republicans
failed
completely to obtain their objec¬
tive.
The Silver Bloc simply let
The
episode just described may
without its lessons when
not
be
+he
Bretton
in the
Woods
Senate.
bill
comes
Hall
&
;
tion drive. It is estimated that the
quarterly total of salvaged paper
one plant represented the
at this
of sufficient
replacement
papermanufacture of
the
for
board
7,150,000 Army "K" ration packages.
There,
indeed, is
has
Announcement
the
retirement
William
S.
Knudsen
up
Confers With Stalin
Harry L. Hopkins, at Moscow
on a special mission for President
has
Truman,
conferred
28.
War
as
De¬
Washington, May 29, adding
Gen.
the
Knudsen's
resignation
five
years
to
job as
president of General Motors Cor¬
poration to take on the job, at the
request
of
the
late
President
Roosevelt, of converting peace¬
time industry to the needs of war.
General Knudsen, a civilian who
became
a
three-star general
in
day
after he left his
jump, reached the Army re¬
of 64 two years ago
on active duty by re¬
tirement age
but
stayed
quest until Germany was defeated.
He
was
1
regarded as the Army's
shooter" on the
"trouble
production front. In announcing
his
forthcoming retirement, the
War Department
been
Cluster
awarded
to
add
to
Oak
an
a
work
Leaf
previously
Distinguished
Medal for his
Forces.
disclosed that he
awarded
.
.
,
Foreign Commissar Molotov and
that
effective
several
Stalin, but the
American Ambassador W. Averell
from
becomes
Corp.
of Schenley Distillers
FREE — Send a postcard or letter to
Schenley Distillers Corp.,350 Fifth Ave.,
N. Y. 1, N. Y. and you will receive
a
booklet containing reprints of earlier
articles on various subjects in this series.
made
director of production,
Associated - Press
reported
the
"NECES¬
MARK MERIT
Lieut.-Gen.
been
of
a
SITY"!
subject of the talks has not been
disclosed, according to the Asso¬
ciated Press from Moscow, May
as
Army Production Head
of
part of the
George
Wesley
Knodsen Retires
had
them down.
as a
company's nation-wide conserva¬
times with Premier
No.
1939.
But
Angeles;
Marx, Holbert-Hargrove & Co.,
Long Beach; George R. Miller,
George R. Miller & Co., Pasadena;
one
publican Senators kept out of this
deal.
'.-/'vM''r"
•
All the others
Los
650,000
pounds of unusable carton material,
which was routed to scrap dealers
Los Angeles; Do na Id
Royce,
Blyth & Co., Inc., Los
Angeles;
Charles
Sill,
Nelson
partment
Witter &
J.
for
the Treasury
of the requifed re¬
serves
with
ently
Legislative Committee of the IBA.
Co.. Los Angeles; Carey
temporary
silver
any
first
Gerald
to change the gold content
Also involved were
Stabiliza¬
porarily
silver.
the Third War Loan
Syndicate idea was
the life of the $2 Billion
aid
pay
of
The
Drive.
of the dollar.
ver.
the In¬
ternational Monetary Fund in the
of
the
quire
part of its subscription to
form
allies.
deprive the White House of the
tion
Bretton
States
those
ditch
"alliance"
power
the chief fea¬
be a require¬
ture of which is to
ment
the
to
to
good an example as any of
Bloc's political methods was
monetary powers as the occasion
Oklahoma, author of the infla¬
tion legislation of 1933 known as
the Thomas Amendment, only re¬
cently gave notice on the Senate
floor of his intention to present
legislation,
is
ready to utilize what al¬
not
utilize
of
amendment
It
tion of the President's emergency
another. Senator Elmer Thomas
Woods
defense
Republicans in 1939. On that oc¬
casion the Republicans sought to
record as plan¬
ning to hitch the silver "wagon to
the Bretton Woods star," one way
an
Its
"The
As
has long been on
or
has been:
is offense."
always
hesitate
ap¬
Banking
ruled out of
McCarran
for silver as it is
lies it finds at hand, and does
order.
Senator
more
securing what it now has.
always
House
was
so
best
made
already
Senate
the
probably
much interested in getting
theory
was
bill had
and been
the
after
passed
Bill,
ginning
of Governors of the IBA and pres¬
in
the
the effort, in
amendment to the
Ration
every
is
Bloc
Silver
something
Because
the form of
Reserve
of
to
Robert H. Moulton
Senator Thomas' frank.
not
in
12-year-
power
sent
Latin
and "opus/'
meaning work—co-opus—to work
together. Really, it is one of the
most important words in our lan¬
Meyer,
suggested by Carey Hill of
Hill, Richards & Company, Los
Angeles, a member of the Board
The
Representatives to
of
House
were
ton
the silver purchase sta¬
Indeed, only a few days
tutes.
Facsimiles
silver.
for
letter
Bogardus, Bogardus, Frost
Los
delegate participating in the Bret¬
Woods
Conference,
under
opponents of hard money will ad¬
dress themselves to seriously at¬
tacking
that
of
■///v>.'
YFi;v;..y./
Durst, Wagenseller & Durst, Inc.,
Angeles; Rudolph J. Eichler,
Bateman,
Eichler
&
Co.,
Los
and Financial Chronicle
the
later
or
has
D, J.
The Silver Bloc is
sooner
of
whom
& Banning, Los Angeles; Willis H.
banks and the Silver Bloc.
that
group
are:..
some banking spokesmen have stated publicly that the Bretton Woods
enabling bill ought to be further perfected in the Senate, friends of
the program are alert for any sign of cooperation there between the
fearful
-
Supervisors,
each
of
a
group of firms as¬
signed to him. These supervisors
WASHINGTON, D. C., June 6—With House Bretton Woods de¬
now
considered perfunctory, attention veers to Senate.
Since
recognition
y
The organization also includes a
Reported Bloc Will Try to Have United States Subscrip¬
tion Paid Partly in Silver
the "white metal" since 1933. It is
area.
Los Angeles,
jealous of the®"
Congress has given Roosevelt, demanding more con¬
the
together,
tronomical figures these days: We
To Amend Bretton Woods
bate
word-COOPERATION!
Exchange
Committee for Southern California
Senate Silver Bloc Will Seek
Special to the Commercial
more
*
a
War Finance
huge 7th War Loan thermometer in front of the Los-Angeles Stock
on which each day at noon, to the accompaniment of a blast
of a siren on the building, the Los Angeles Fire Department
posts
Chronicle" at
be used for
might interest some of our readers,
since they are accustomed to as¬
of the
correspondent of the "Commercial and Financial
the United Nations Conference, discusses economic as¬
can
from
Comes
SZ2ZZZZZ22S5Sg
meaning
A. Wilfred May,
various plants—so that
important wartime work.
A great
LOS
co¬
merchandise is shipped
our
our
material
new
Phone LD-159
•
S55Z
making
are
operation from their wholesalers
and retailers in salvaging cartons
INVESTMENT SECURITIES
Private Wires
company
possible effort to elicit
every
Leading Exchanges
Service
with the Air
Harriman
were
present at
the
meetings, which were said to be
extremely cordial.
Stalin was reported to be very
busy at this time, and it was felt
that
his
willingness
to
hold
lengthy discussions on three con¬
secutive evenings indicated that
highly important issues were be¬
ing
given
thorough airing.
a
Truman to Confer
on
Jobless Pay Increase
President Truman has indicated
his
intention
posal
for
ment
pay
to
discuss his
emergency
increases
the
with
Con¬
The President
gressional leaders.
has also
pro¬
unemploy¬
expressed endorsement of
long
expansion
range
Social
program
the recently
Security
embraced in
introduced Wagner-
Dingell Bill, the Associated Press
reported from Washington .June
1.
THE COMMERCIAL
& FINANCIAL
Thursday, June 7, 1945
CHRONICLE
«
v'
y.*'•
"V
•
Bunte Bros.
$
■
Telephone State 8711
South La Salle Street •:
120
CHICAGO 3
lilCKEY' & CO.
Trusts Assets
Telephone—Randolph 8800
Alfred
L.
Baker
&
Co., pioneer Chicago
brokerage firm, changed its name
to Betts, Borland & Co. on June 4.
Teletypes
Dearborn Corp.
Consolidated
—
C.G 1234-1235
YORK
DIRECT WIRE TO NEW
X
Textron Inc. Warrants
and John P. Wise.
son
United Stockyards Corp.
are
Blair
Borland, Francis Peabody Butler,
John H. Quinlan, Thomas Hender¬
Pfd.
Betts, Chauncey
M.
graduated
Arthur M. Betts was
Chicago-Kent
College of
Law in 1913 and admitted to the
Illinois Bar. In the same year he
became associated with Alfred L.
Baker & Co. as manager of the
from
Clement, Curtis & Co.
Exch. and Others
Y. Stock
Members N.
"134
S. LA SALLE
\
CHICAGO 3
#
ST.
becoming
a
Mr. Betts has
been a governor of the Chicago
Stock Exchange since 1932 and
bond
'
;
Teletype CG 214
Randolph 6800
INVESTMENT TRADERS ASS'N OF
"
Members
Exchange
Trade
Stock
Chicago
Board of
;
'
Markets
Firm Trading
Garrett
5
Corporation
The annual
SALLE ST.
CHICAGO 4, ILLINOIS
i
System
Telephone Bond & Share 7
Pfd.
&
15,
16,
June
19,
1945—Securities
June
CHICAGO
23,
*
-
August
28,
29
30,
&
Club
Traders
Club,
of Philadelphia Spring Outing at
;
;*• ■
"
-
;
of
meeting
annual
Chicago
outing
at
Lincolnshire
>
Traders Association,
1945—National Security
business
and
officers.
of
election
Inc. annual
To Our Offices In
■
Cities Throughout
'■/<'
the
Country
Central
Corp., Com. S.
Co., Com.
*Gibson Refrigerator
to
The Financial
Exchanges.
with Keb¬
bon, McCormick & Co., 231
Glass,
Mr.
South
Army,
&
Co.,
was
*Oak
Com.
Mfg. Co.,
Wells-Gardner &
&
son
Knight, Dickin¬
Inc., and
Kelly.
V.
Co., Com.
*Prospectus Available on Request.
Report Available
MICHIGAN CHEMICAL
Paul H.Davis & Go.
Established
Members
Principal
10 So. La Salle
1916
CORPORATION
Stock Exchanges
St., Chicago 3
Teletype CG 405
Ind anapolis,
Ind.
-
Rockford, III.
Michigan Chemical Corporation has interesting
war
,Member, National Association
of Securities Dealers
products
...
...
It is
It has several new post¬
of the companies now
producing the famous insecticide DDT ... It
has a small capitalization for a chemical com¬
and the common stock, traded in the overthe-counter market, has great leverage
pany
.
.
Wholesale Distributors
tional
CHICAGO 3
State 6502
&
Co.
affairs, both
na¬
discuss
politics
were
business
conditions,
mar¬
From 1896 to 1930 the firm
on
the
by
company
totaled
$23,-
638,454 as of
April 30 last,
as
compared
with only $9,-
the
802,026
on
date
same
in
Total
1944.
shares
out¬
standing
in¬
dur¬
creased
ing
the year
from 1,688,046
to
3,416,967
and the
num¬
share¬
of
ber
ad¬
holders
from
vanced
5
485
to
the
of
H.
J.
Simonson, Jr.
12,-
-
The
734.
data
When the
to
make
tion
building
for
way
north
the
on
Borland
the
was
torn down
the
new
to
its
Field
one-half
present
ground
floor
seven
by
the
corporation:
Series,. Low-Priced Bond
Series,
Preferred
Stock Series,
Income Series, Stock Series, In¬
Bond
.
dustrial
Priced
Series
Stocks
the
Building. The firm is
one
prominent
brokerage
houses
who
ground
floor locations.
have
remained
Business Man's
Bookshelf
Agreements Act,
Bretton Woods
Testimony
The
of
Fraser on—
of the
Leon
Bank
National
First
City of New York—paper.
Fiscal
Employ¬
Pierson—Na¬
Policy for Full
ment—John
H., G.
tional "Planning
Affecting Busi¬
New York Laws
Tracy
Drake,
Solomon
Sturges, Hugh McBirney Johns¬
ton, Thomas Coyne, Robert M.
Curtis and John A. Stevenson. An*
*
*'
.*
V*' *
*
and
Corporations, Annotated
ness
1945—United
States Corporation Company, 150
Broadway, New York 7, N. Y.—
Revised to
April 24,
Pattern
Corporate Financial
Cross Section View
of
Structure—A
Manufacturing, Mining, Trade,
Constructions, 1937—Walter
of
and
A.
Cudson—National
Economic
Bureau
1819
Research,
New York 1, N.
way,
•* "4"' *
1*
»'-M.
M
A
of
Broad¬
Y.—cloth-
$2.00.
Steel
Post-war Outlook for the
Industry—E. WT. Axe & Co,
730
Fifth
Y.—paper—$1.00 (500 to
lic
libraries
non-profit
and
'Inc.,
19?
pub¬
insti-
New York
Avenue,
N.
tions).
Organization—Economic,
World
Political
Social
and
bia University, New
—$2.50
per
copy
The
Acad¬
Colum¬
York 27, N. Y.
to
non-members
member¬
current
(included with
ship
—
Science,
of Political
emy
privileges).
other
Former partners of the firm in¬
Trinity 3908
800
Association,
Street, N.W., Washington .6,
C.—paper—250 (discounts on
quantity orders).
21st
in
cluded
York
Low-
and
Stock Series.
Common
loca¬
of
few
operations
series
covers
following
sponsored
ing at LaSalle and Adams streets.
4
Direct Wire to Ward & Co., New
funds-
ment
sponsored
was
the
ground floor cor¬
of the Home Insurance Build¬
ner
on
May 28 that net assets of invest¬
lead¬
many
ket."
located
and
announced
paper—$2.00.
just "look at the
or
President
Securities
Corp:,
intimate
Baker's
Swift, Kellogg Fairbank. Edgar
Bancroft, Edward F. Carry
Richard C. Hall, etc. It was the
custom of many to drop in at the
Baker office during the noon hour
WEST JACKSON BLVD.
CHICAGO
Research
Higher
Jr.,
F.
650 S. Spring St
CG 99
and
ing and public spirited Chicagoans, such as Charles H. Wacker,John G. Shedd, Edward B. Butler,
John V. Farwell, Medill McCor¬
mick, Morton D. Hull, Ernest A.
Hamill, David R. Forgan, Louis
MARKET
LOS ANGELES 14
135 La Salle St.
civic
Mr.
contemporaries
of
141
DISTRIBUTION
promi¬
banking
local.
Among
UNDERWRITERS
SECONDARY
in
and
block
Kneeland
' -
in
Building, the firnf moved
Mjddle West— Pacific Coast
For
was
circles in Chicago and actively in¬
one
.
I
died
brokerage
terested
National
the
of
Alfred L.
1927.
Mr.
by
for many years
was
in
nent
to
growth possibilities
CARTER H. CORBREY & CO.
who
Baker,,
Baker
1896
Co.
&
Baker
■
A.
Chicago Board of Trade
Tel. Franklin 8622
has
§.
previously with Blyth
Steel Tubes Co., Com.
Globe
who
recently been serving in the U.
Chronicle)
CHICAGO, 111.—Wiley W. Glass
has become associated
Street, members of the
York
and
Chicago r Stock
New
Kebbon, McCormick Co.
& Wire, Com.
Steel
L.
in
Simonson,
D.
1944.
Alfred
1
:
Salle
La
W. W. Glass Now With
(Special
Burton-Dixie
1941 to
founded
Wires
Principal
1
-j
.
Central 7540
Direct
*
1945—Bond
3
CG 530
*
Golf and Country Club.
1945—Investment Traders Association
Manufacturers Country Club.
22,
County
South La Salle Street,
Western
at
,
June
Incorporated
135
Los Angeles annual
Arrowhead.
• I ,
Traders Association of Detroit and Michigan annual
outing
the Elgin National Watch
Co., the Building Managers' Asso¬
ciation, and trustee of St. Luke's
Hospital, Old People's Home, Crerar Library and other institutions.
He
served
as
president of the
Chicago
Council *of the Navy
League of the United States from
pany,
17, 1945—Security Traders Association of
spring party at the North Shore Tavern, Lake
June
summer
E. H. Rollins & Sons
He
partner in the firm in 1930.
•a
nois National Bank & Trust Com¬
Calendar of Coming Events
Common
Central Paper
ap-
Association announces the
is a graduate of Harvard Univers¬
pointment of the following District Chairmen:
ity and for many years has been
Bert H. Horning, Stiffel, Nicolaus & Co., St. Louis, Mo.;
prominent in' banking and real
estate circles in Chicago,
Joseph C. Phillips, Pacific Northwest Co., Seattlb, Wash.
being
man aging
Ray P. Bernardi, Cray, McFawri & Co., Detroit, Mich.
owner of the Borland
Don E. Summerell, Wagenseller & Durst, Los Angeles, Cal.
properties, as well as being identi¬
fied with civic affairs and numer¬
Joseph H. Weil, Weil & Arnold, New Orleans, La.
T. Geoffrey Horsfield, William J. Mericka & Co., New York, N. Y.
ous charitable institutions.
He1 if
a director of the Continental Illi¬
Harry Barclay, Caswell & Co., Chicago, 111.
Aircraft Common
Howard
Chancey Blair Borland became
ASSOCIATION, INC.
National Security Traders
/ The
208 SOUTH LA
Randolph 4068
CG 537
as
gov¬
'
Midland Utilities 6/38
Bell
of
Spring Outing of the Investment
SECURITY TRADERS
NATIONAL
Telephone
terms
board
the
of
Traders' Association ernors,-from .1938 to 1943. He is a
director and member of the ex¬
of Philadelphia will be held at Manufacturers' Country Club on
ecutivecommittee
of Butler
Friday, June 22.
A large turn-out of the local membership is ex¬
Brothers,. vice-president and di¬
pected.
Travel restrictions will probably reduce the number of outrector of the 208 South LaSalle
of-town guests to those who are in the city on business on that date.
Street Building Corporation, and
Golf and soft-ball will be followed by dinner and evening pastimefe
a trustee of the Chicago Commons
peculiar to the fraternity.
1
Association.
' '
Fred.W.FairmanCo.
Chicago
successive
five
chairman
PHILADELPHIA
1925.
in
served
SINCE 19081
.
department,
-
partner
J.
H.
—
partners
active
Present
Arthur
Pfd.
Consolidated Elec. & Gas
ILL.
CHICAGO,
Power Com.
G. Conn Ltd.
C.
Minneapolis
■,
NatT Securities
TRADING MARKETS:
Arkansas Missouri
Teletype CG 273
:
Pittsburgh
Alfred L. Baker & Go.
3
CHICAGO
BUILDING,
FIELD
; v
Philadelphia
New York
;
Tele. CG 271
Randolph 6960
Tel.
Incorporated
Salle Street, Chicago 3
So. La
135
Common Stock
1922
Established
Byllesby and Company
H. M.
GALVIN MFG. CORP.
Co.
C. L. Schmidt &
CORP. Common
MANUFACTURING CORP. Common
GALVIN
M
Pfd.
•'
"
.'v.-
* * •'
.
& SO. BEND RR. Com.
DEEP ROCK OIL
Enamel
United Stockyards
\
Y •' "
...
INVITED
INQUIRIES
:
Fuller Mfg. Co.
r
v
:
,
CHICAGO SO. SHORE
Central Electric & Gas
Nu
Maintain Active Markets In—
—We
Trading Markets In
partner,
ford, resigned
*.n
the
war
Walter W.
in
production as
president
Steel Spring
of
Co.
'Craw¬
engage
assistant to
the Standar
1942 to
Number 4392
161
Volume
THE COMMERCIAL
& FINANCIAL CHRONICLE
2511
TRADING MARKETS
—
Failli With Our
Keej>
We have
Fighters
Collins Radro
American
Buy ;War Bonds For Keeps
Barge Lines Co. Common
American Service Co.
Galvin Mfg.
$3.00 Part. Pfd.
Scott Radio
Anheuser Busch Inc. Capital
Consolidated Gas Util.
KITCHEN & CO.
Mastic-Asphalt Co. Common
INCORPORATED
135 South La Salle Street
New Jefferson Hotel Co. 4-0% Bonds
135 SOUTH LA SALLE STREET
(ST.
Dearborn 9600
Stromberg Carlson
Corp. Common
Hydraulic Press Mfg. Co. Common
DOYLE, O'CONNOR & CO.
Telephone:
Teletype:
CG
Chicago 3, III.
LOUIS)
1200
Seven-Up Bottling Co. Common & Pfd.
*
R. W. Davis Heads Ed.
of
(Continued from
ILL. —Ralph
CHICAGO,
located
homes
W.
of
the
war
stampede
bonds
Baird, The Wisconsin
is
during
bound
to
&.Co.; Robert A. Gardner, Mitch¬
due to
this
Reuben Thorson, Paine,
Webber, Jackson & Curtis, were
of the Board
Governors to serve three years.
G.
Emmett
.
Barker,
Bennett & Co.
man
James
E.
mittee
and
William
Messrs.
E.
f
Turner
T.
member
a
the University of
ated from
in
cago
from the
became
sia
Chi¬
the Northern Illinois
after
the United
on
some
the
the
States,
necessary
position
conditions.
economic
neglect
is
war
churches
We talk
the
over.
religion" among
the
Servicemen, but there are
many more fox-holes here in the
of
Corporation,
United
States
abroad.
The
than
churches
there
will
the churches
now doing for
that you then repay
partner of Paul H.
Davis & Co. in June, 1944. He has
active
for what they
are
and your families.
been
actively engaged in the ad¬
ministration of the Exchange hav¬
you
ing served in the past as a mem¬
ber of the Board of Governors and
Chairman of the Executive Com¬
going to die some time.
but
keep
mittee.
the
proper
.
Don't
10.
take
forget
in
care
itj
that
making
Company of Mil¬
waukee, Wisconsin, and is the first
out-of-town governor to be elected
over
you
are
Not only
your will,
OSHKOSH, Wis. — Thomas B.
Inglis has joined the staff of Aim
& Co., Oshkosh
National Bank
Building. •
use
banker
will
give
you
The Hub, Henry C. Lytton
Insurance
Koehring Co. Com.
North'n Pap. Mills Co. Com. & Pfd.
| Nekoosa-Edwards Paper Com. Central Elec. & Gas Co. Pfd.
Compo Shoe Mchy.Com.&Pfd. Central Telephone Co. Pfd.
Rochester Telephone Co. Com. Hamilt'n Mfg.Co.Part.Pref.&Com.
sive service of the nation—the two
essential
controls,
namely,
the
production of coal and electricity
on
which
ure,
depends in large meas¬
the economic development of
the
nation
and
of the Empire,
through which it will be possible
direct all national
activity—
to
well
as
as
the
control
of
credit
which this activity can
Lastly, there will be
measures
for the repopulation of
through
steered.
be
A.:
F.
Wis. Pwr. & Lt. Co. 6 &
7% Pfd.
lf.rmmViV/ir »
225
EAST
PHONES—Daly
MASON
5392
ST.
MILWAUKEE (2), WIS.
Teletype MI 488
Chicago: State 0933
Phone State
0101
j
consisting of guarantees
families, and rational regula¬
tions concerning immigration. The
harbor is in sight, let us be united,
patient and hardworking, so that
we will not sink before reaching
France,
to
it."
dent
of
offices at 75 Federal Street.
are
Harold
P. Carver,
Now
the
Offi¬
presi¬
provides
Carver, treas¬
Elisabeth H. Robers.
Mr. Carver was president of Car¬
ver & Co., Inc.
and
The
Again Postponed
Securities
and
Commission
has
again
to
1st
the
August
broker-dealer
tion
&
tional
pur-
poses,
priin
ma
riIy
Teletype CG 257
Crultentfen Admits
ing
relat¬
or
CHICAGO, ILL.—Cruttenden 8s
Co., 209 South La Salle Street,.,
insur¬
to
It main¬
ance.
members
read¬
a
room
James H.
li¬
A. F. Lafrentz
Life
has
who
William
107
Mr. Lafrentz suc¬
Affiliated
served
of
Riordan
A.
William
ceeds
New
Companies,
President
as
of
Society since 1942.
firm
and
F.
Walter
general partners. Conrad
formerly secretary and
as
Tuerk
Mee
been admitted to the
was
assistant
general manager of W. F.
Straub & Co. Mr. Norris, formerly
vice-president
of
Commerce
Nashville, Tennes¬
see, will assume the duties of sale*
manager.
Mr. Mee will continue
as
syndicate manager and Mr,
Murphy will continue as manager
Union Bank of
Evans
Spalding Member of
Exch.
N. Y. Coffee & Sugar
ing a partner of John J. O'Brien
& Co., 231 South La Salle Street,
members
postponed
cago
of
New
York
and
Chi¬
Stock Exchanges and other
principal exchanges, has been ad¬
registration revoca¬
mitted to membership in the New
City.
R.
Norris have
a
in
York
New York and Chicago
Exchanges, announce that
Murphy, Conrad Tuerk,
Stock
and
at
Aetna
1
Four New Partners
connection
with
the
4
Dearborn 1501
educa¬
proceedings against Ira Haupt I York
Co.,
request
anization
org
for
Exchange
hearing
on
231 So. La Salie St.
an
CHICAGO, ILL.— Evans Spald¬
Hearing
ratable
CHICAGO
and
maintains
Margaret R.
dent;
a
COMSTOCK & CO.
Society
William Street.
; BOSTON, MASS.—H. P. Carver
Corporation has been formed with
cers
the
So¬
of New
York.
Organ¬
ized
in
1901,
brary
Formed in Boston
Railway
Company
Presi¬
reference
Corp.
Dodge, Des Moines
& Southern
ciety
ing
Carver
Fort
Lafrentz,
Insurance
tains
H. P.
One-page Analysis of
Society
Coffee
&
Sugar
Exchange
of the
trading department. Pres¬
Walter W. Crut¬
tenden, Frederick R. Tuerk, John
B. Dunbar and Anthony L. Godie.
ent partners are:
Admission
was
of the
"Chronicle"
new
partner*
reported
previously
of May
in
the
24th.
Inc.
Federally
For 1»4»ST-WAH
and
Southern—com.
Interstate Air &
&
Insured
To Yield
pfd.
31/2%
..,
AGGREGATING $25,000,000.00
Have
Engineering
Trust
been
purchased
Companies. Trust
Estates, Pensions.
Mohawk
3%;.
Certificates
thru
us
by
Departments,
Liqueur
:ROM OUR L
Pressurelube, Inc.
FUNDS DIRi
Federally
Bought
—
Sold
—
Quoted
located
Circulars
on
CENtral 4274
in
Savings
&
Loan
section of the Coun¬
try, offer Liquidity. Insured safety of
Principal, complete
Request
CHICAGO
CG
every
FIN A NCI A L
BENNETT, SPANJER & CO., Inc.
105 SO. LA SALLE STREET
Insured
Associations about 400 Represented—
■
i
Teletype CG 361
President
of
Surety
Co.
of
New
York, and First Vice-President of
New York Casualty Co., has been
elected
j
•
Street
American
& Company Com.
Standard Silica Co. Com.
| Le Rot Co. Com.
Salle
La
Chicago k, Illinois
A. F. Lafrentz Heads
good sug¬
ing such trusts.
South
231
gestions, free of charge, concern¬
CONTINUOUS INTEREST IN:
I
ad¬
state—without
Colorado
i
public'
up
is to be used after they go.
This means give more thought to
the use of forming trusts for your
heirs
and
others.
Your local
Inglis With Aim & Co.
better
the
to
money
since 1930.
of
reform
a
spoliation, but for the exclu¬
any
urer;
to date through
of codicils..- Too
many people sacrifice their lives
by hard work and thrift to ac¬
cumulate some money; but give
almost
no
thought to how the
Robert W. Baird is President of
a
in
problems. We mean by this,
provisions which will organically
turn
are
cially be entitled to your attend¬
and support after this global
warfare has come to an end. See
request
ADAMS & CO.
address to
ern
espe¬
ance
He
returned to the securities business
The Wisconsin
your¬
in
"fox-hole
about
ufacturers of basic tank track.
an
If,
are
Don't
9.
located in De Kalb, Illinois, man¬
as
falls
all
under
until April of 1942, at
which time he accepted a position
President
children.
of
as
Exchange
the
money
on
children educated and trained
hold
to
partner of that firm in 1921. He
the firm of Paul H,
& Co. on the Floor of the
to
skimpy
education
to come, the shadow of Rus¬
ever
your
Davis
Assistant
be
experts in any one
subject will have nothing to fear.
Hence, the importance of having
represented
as
other
thrift
one's good charac¬
for
your
those who
release
admitted
the
to
need for diversification
Don't
or
years
in 1919, he
associated -with Paul H.
was
listen
connection with investments is
8.
S. Army
U.
Davis & Co. and
a
his
After
1916.
same
self
He gradu¬
Exchange since 1922.
and
spent for the
street, and has been
of the Chicago Stock
be
than it is at present to face mod¬
ter, health, income and happiness.
partner of Paul H. Davis & Co.,
"there will
Be
Mix play and work,
radio
a
on
•
advantages and disadvantages.
religion,
Common
"Circular
the French
nation on May 24, in which he discussed the foreign and domestic
policies of his government, announced a project of nationalization
of coal mines and electricity as well as a proposal for the control of
credit to make it "possible to direct all national activity."
"First
of
all",
lie
declared,
position
and
Projectcf SFsei and
Gaulle, in
its
of this Committee.
10 S. LaSalle
de
has
necessary
Ralph W. Davis, the new Chair¬
of the Board of Governors, is
Charles
ment,
in
man
a
Remember every lo¬
General
-
our
The
elected
were
are
spending, friends and ene¬
mies, all in proper proportion.
Bacon, Whipple & Co.;
Ralph Chapman, Farwell, Chap¬
man & Co.; John C. Stewart and
Alfred
was
and
Bacon,
members
it
we
Mohawk Liqueur Corp.
Credit HalioBiaiteafa
ministration
fellow.
of the 1946 Nominating Com¬
De SaslEe Anmuses
services, which will place
yes,
Howell Elec. Motors
Interstate Aircraft &
St. Louis
cality, industry, job, home, invest¬
tolerant
elected Chair¬
was
than
inflationary situation.
anybody.
or
of
I
Preferred
Engineering Corp.
houses,
7. Don't get hipped on anything
fin; and
Chicago
post¬
a
higher stock prices
see
"
&
Founded 1890
people,
new
days,
pre-war
Common
INCORPORATED
new
less
even
Co.,. Milwaukee, Wisconsin; Wil¬
liam A. Fuller, William A. Fuller
Preferred
pre-war
gadgets of
all kinds. When you consider that
the supply of good stocks
and
three years.
members
Stifel, Nicolaus & Company
is
more
&
Franklip County Coal Corp.
Common
over
cause
fc'r
furniture and
TRADING MARKETS
Common
ahead.
years
American
increase of 300%
figures, will surely
ell, Hutchins & Co.; John J. Grif¬
•
during the
us
"socks"
an
new
elected
is hound to be
i
National Terminals Corp.
should
—
$25 billions of cash in the
pants' pockets, cash drawers and
retiring Chairman of the Board,
were
re-elected members of the
-Robert W.
ACTIVE
The
Payne, Webster, Marsh & Co., the
,
and
us
with
Lynch, Pierce, Fenner & Beane;
D. Dean McComuck, Kebbon, McCormick & Co.;
and Harry M.
serve
farms
•
Western Light & Telephone Co. Common
for
6. Don't forget that inflation
with
succeeding Harry M. Payne.
Homer
P. - Hargrave,
Merrill
Board to
small
Tele. CG 573
.
higner as soon as build¬
ing restrictions are removed.
Stock Exchange, at the an¬
election
of
the Exchange
cago
and
:
Trailmobile Co. Common
2504)
page
land—both
LOUIS)
Td. STA^e 4950
much
oe
Davis, partner of Paul H. Davis &
Co., was elected Chairman of the
Board of Governors of the Cninual
suburban
(ST.
|
Textron Inc. Common and Warrants
Ten Besi'is: Babson
Chisago Exchange
—
continuing interest in the following:
a
3
k^rfoT.'J—m
pment Co.
j
1040
105 SO. LA SALLE
ST.. CHICAGO 3
I
•
Thursday, June 7, 1945
CHRONICLE
& FINANCIAL
THE COMMERCIAL
2512
FACILITIES
CLEARANCE
Metal & Thermit
-
$100,000
Lukens Steel
Mevio
on
York, Philadelphia and
New
Philadelphia, New York and Los
'VV;,
Member
■'Vv
Member
Federal
Federal Reserve System
Deposit Insurance Corp.
Inquiries Invited
between
System
Wire
Private
Chestnut Streets
PHILADELPHIA
Telephone—WHitehall 3-7253
Y.
Lives and Granting Annuities
on
yield 1.55%
to
Hagerstown, Md.
Pittsburgh, Pa.
N.
Insurances
For
15th and
Los Angeles
New York
PENNSYLVANIA COMPANY
THE
Jan. 1, 1975/62
Street, Philadelphia 2
1529 Walnut
Inquiries Invited
3%% Bonds
Angeles Stock Exchanges
Los
Dealers an experi¬
clearance of security
the cost is very moderate.
of the best and
Our facilities are
CITY OF PHILADELPHIA
Request
BUCKLEY BROTHERS
Members
enced
.
transactions.
Corporation
Eastern
Brokers and Security
department for handling the
to
offer
We
,
,
Angeles
on
all City of
Philadelphia issues.
Pennsylvania Municipals
Ti
the
Although
STROUD & COMPANY
Bank and Insurance
123 SO. BROAD ST.,
Pfd.
-
Pennsylvania Brevities
York Phone
New
Phone
HAnover
Teletype PH 257
1477
by
syndicate
Ripley
Blair
Son
Pennsylvania's Martin Administration has disclosed that it has
consideration a $33,000,000 post-war highway improve¬
for the Philadelphia area.
projected program includes new approaches
ment program
61/2s 25% Paid
elimination
of
traffic
improvements to
approaches to the Southwest
bottle-necks and
the
4's
and Northeast,
airports.
Added to the above
Aldred In v. Tr.
is the $42,-
construc¬
000,000 project for the
4l/2s '67
of
tion
storm
;
sewers,
sorely
and al¬
"Hoc" Williams
Moving
to Gu Bois, Penna.
PHILADELPHIA, PA.
delphia
traders
—
Phila¬
the
miss
will
CO.
Bell System
1213 So. Bvoad St. Philadelphia
7, TeL
Pa. |
York Phone
New
FHLA 591
WHitehall 4-2300
Columbian Paper Co.
Jamison Coal & Coke
;
Co.
Coal &
Phila. & Reading
;
.
.
Iron Issues
Co.
Jefferson Coal
Tonopah Mining Co. of Nev.
holiday" : for the: last be managed and "conducted
and that a lessening of Harold; Cunningham.
"building
,
BOUGHT
—
SOLD
two years,
QUOTED
—
may
PHILADELPHIA 6, PA.
Teletype PH 240
of
an
bright.
level are
Warner
Dealer Inquiries
Invited
Lots
&
Fractions
Botany Worsted Mills
manufacturers
■'
pfd. & A
Empire Steel Corp. com.
Pittsburgh Railways Co.
All
& com.
Wawaset Securities
Byllesby & Company
PHILADELPHIA
gravel and
and distributors of
building
materials,
limestone
products,
Warner Company is in an excel¬
lent position to benefit from in¬
central-mix
creased
concrete,
activity
OFFICE
Stock Exchange Bldg.
Phila. 2
Teletype PH 73
Phone Rittenhovte 3717
years.
in the construc¬
several
223
505,796 was in cash and $600,000
in U. S. Treasury bonds.
With
ample working capital at its dis¬
posal,
fast
as
and
available.
as manpower
other materials become
is
be un¬
contracts can
new
dertaken
It
reported
>'
/
Common Stock
that the
com¬
.
I
Incorporated
New
York
Philadelphia 2
Boston
8an Francisco
Chicago
SAN ANTONIO,
war
jobs in the Budd plant than
are now workers employed,
is
our
belief," he said, "that
goods will be taken by our cus¬
just as1 fast as we can
tomers
get
into production."
(Continued on page 2513)
them
a
TEX.—William
National Bank & Trust
Company, of Kansas City, Mis¬
souri, since 1935, has joined Roe
and
Company,
Frost
National
as
Executive Man¬
Mr. Parvin is a native Texan
the University of
ager.
attended
He started
Missouri.,
in
the
in¬
:I:
>
The much discussed John Han¬
cock
partnership in Carl M.
Rhoades & Co., 61 Broad¬
New York City, members of
New York Stock Exchange
Loeb,
and
other
changes.
He viously
&
Co.
a
leading
national
Co.
Insurance
small
included several
amounts of Philadelphia's,
also
block of
a
wealth
Ex¬
Capt. Michel was-pre¬
partner in J. S. Bache
for the city was
efforts made in
defeat
the
legislature
recently
Ralph Phillips June 8
The National Association of Se¬
District No.
curities Dealers, Inc.,
will hold a meeting in the
great hall of the Chamber of ComV
merce, 65 Lib¬
erty
Street,
New
3:15
of
be the
had
of
lips, Chairman
Governors
of
the
Asso¬
ciation,
fol¬
which
and to the extent
Ralph
E.
Phillips
r.•
bonded debt of the depression-
be open
discussion.
Authority.
repeal
Martin
General
In
said
that
Governor
"remove the
unlimited
the
menace
will
act
of placing
indebtedness
upon
it
will
vance
a
vote of the taxpayers."
the
Governor
is
one
is
conscious
of
the
it
is the
with respect to the
of public credit.
some
say
*
„
*
V.,
*
•
With the passing of the State
Authority, all of whose bonds,
the
way,
State
were
held
Employees
by
the
Retirement
I und and the School
550
buildings constructed dur¬
ing
the
of
were
to
save
the
run
the
agency.
until
1967,
Commonwealth
*
-.
Governor
will
mil-;
Martin's
action
in
the
State's
4-mill
personal
property tax and from any similar
county tax was favorably noted
by the market. A principal bene¬
ficiary of the legislation will be
the City of
Philadelphia, which
of
writing to the office
Committee in ad¬
District
of the meeting and, if pos¬
sible, not later than May 29. This
would assist the Committee in be¬
ing prepared to discuss the topics
greatest interest to the mem¬
bers but is not intended to debar
of
questions
from
Because
the
insofar
available.
the
of
floor
the
time may be
as
regulations
of
New York
City Fire Depart¬
the capacity of the hall is
ment
restricted.
quested
house,
re¬
attendance
the
one
:
v
therefore,
It- is,
m
that
limited to
be
each
delegate from
■"
•;
Alfred M. Dick Joins
Lewis C. Dick Co.
PHILADELPHIA, PA.
M.
Dick,
Hopper,
with
and
situations
Miss
Hilda
been
on
back
is
now
head
Co.;
Co., 1420
He will trade in
specialized for
the
in
a
Alfred
with
brother,
&
his
of Lewis C. Dick
street.
—
associated
long
Soliday
affiliated
*
recently approving measures ex¬
empting Pennsylvania municipals
from
the
Employees
Retirement Fund, the Common¬
wealth will receive title to the
tenure
contribute to the value
send them in
submitting such
that
for questions and general
meeting if members who have
specific questions in mind will
of
who
the
will
meeting
■
the
the Commonwealth without first
proposals to
that time
permits
The District Committee believes
approving
measure,
the
lowing
born
the
Board
of
liquidate
Pennsylvania
by
antici¬
$49,000,000 of
appropriated by
to
re¬
s
of
Approximately
legislature
k
Ralph E.Phil¬
in the Motor License Fund.
the
brief
-
in a r
pated earlier in the year and the
surplus. includes $111,750,000 in
the General Fund and $63,000,000
the surplus was
will
subject
Gov¬
than
Edward Martin
ernor
June
8, 1945. "Why
belong to the
Commonwealth,
inciden¬
closed its 1943-1945 fiscal
biennium on May 31 with a record
high surplus of $174,000,000.' This
more
on
m.
NASD"
The
$4,000,000
York, at
p.
Friday,
tally,
by
re¬
DisUStoieir
MSD
price to the seller of 120.971.
use
to
peal its productive wage tax.
$500,000 Common¬
Pennsylvania 3V4S of
The latter brought a
1953-1955.
:'
Capt. Clifford W. Michel has been
the
Life
Mutual
lions in interest
charges and in
other expenses.
*
Rhoades Go.
of
the
portfolio award
was
thereby
13,
Redemption of the bonds, which
0. W. Michel Partner
way,
with
sale,
few cents separating offers
by the unsuccessful syndi¬
least
of the City
Building,
the
of
feature
taxpayer who
ultimately must pay the "freight"
and, accordingly, is entitled to at
Manager of the Bond Department
Bank
years
Rather close bidding
1962.
who has been Assistant
admitted to
more
only
fact
Roe in San Antonio
that he
post¬
employees
there
"It
Pennypacker 0100
152® Walnut St.,
William Parvin Joins
Edward G. Budd has
believes there will be
a
Patently,
In Loeb,
his
was
official
vestment business in 1930.
President
and 3%%,
(1965
1975), and optional in late 50s
to
bonds,
refunding bonds, carrying
maturing in various
Exchange.
rearages
informed
»
trading desk at Hopper, Soliday & Co., 1420 Walnut street,
members of the Philadelphia Stock
preferred stock carrying ar¬
is almost ready for
submission to stockholders.
of
Edward G. Budd Mfg. Co.
E. H. Rollins & Sons
McN'amee,
formerly
with
the
Philadelphia office of Hornblower
& Weeks, has assumed charge of
F. Parvin,
several
of
consisted
sale
State
PHILADELPHIA, PA. —Joseph
and
$1.00 Preference
Bought—Sold—Quoted
Hopper, Soliday
plan of recapitalization
which will eliminate two issues
pany's
PHila. Electric Co.
For
development
interest rates of 3 % %
'su'
Jos. McHamee to Trade
During 1944, the company's
quick assets increased $578,to $2,750,560, of which $1,-
net
'•
by
the
tion business over the next
Issues
Warner Co. pfd.
H. M.
Company
Dealers in sand and
American Box Board Co.
Odd
unemployment
problem in the Philadelphia area
and the prospects of continuance
of industrial activity
at a high
;
«mh«ii
a
inquiries, it
be assumed that there need
be little fear
1919
Lafayette Building
Lombard 6400
unloose
deluge of diversified
WM. W. FOGARTY & CO.
Established
'
will
restrictions
these
Yarnall & Co.,
II. Newbold's
Co., Stroud & Co. and
cates.
ready approved
GERSTLEY, SUNSTEIN Cr
The
its
on
their attractiveness
marketwise. Another favorable
W.
Co.,
tax
enhancing
E. II. Rollins & Sons.
made
effervescent fun, quick wit and
by City Council. unfailing comradeship of George
Last month the City Planning H. "Doc" Williams, a partner of
Commission recommended an im¬ Kennedy & Co. since 1922, who is
mediate appropriation to
defray moving himself and family to Du
engineering expenses in drawing Bois, Penna., this month. Between
plans and specifications for the cracking jokes and trading P.T.C,
extension of the
Market Street issues with aplomb, if not always
subway from 23rd to 46th Streets. for profit, "Doc" stuck his fingers
This project, together with com¬ into the frozen-foods warehousing
pletion of the Locust Street sub¬ and distributing business. It was
probably the best "buy" he made
way, is estimated to cost approx¬
since he cornered the market on
imately $100,000,000.
When it is considered that war¬ Mayflower Hotel bonds two de¬
cades
ago.
His partnership re¬
time restrictions in labor arfd ma¬
mains intact and the business will
terials have resulted in a virtual
Philadelphia
in
needed
&
and in
Street,
Little Rock Hot Springs
the
of
composed
city, of its own volition,
has always assumed payment of
made
Co.,
&
&
lots of
to the Delaware
River Bridge, an 11-mile super-highway along Delaware Avenue
to Roosevelt Boulevard, razing of the "Chinese Wall" along Market
The
Inland Gas
a
The
winning
the
116.9184 being
of
Smith, Barney & Co., Harriman
Projects
Millions for Construction
2-2280
with
bids,
of
tender
under active
1st
an
"'[J
ies
Chestnut Street, Philadelphia 2
1421
Locust
PHILADELPHIA 9, PA.
Common
&
H. N. NASH & CO.
Phila.
important contributor in this regard, having
disposed of $5,000,000 of its bonds which were previously
held
by the Board of Sinking $>
is expected to profit to the extent
Fund Commissioners.
of $730,000 annually.
This offering attracted a ser¬
296 & PH 297
Wires REctor 2-6528 & 2-6529
N. Y.-Phila. Private
Philadelphia Transportation Co.
The City of
previously outstanding bonds.
liquidation, of parcels of
Philadelphia was
r ecently
System Teletypes PH
Bell
2039,
been
Incorporated
Sleeks
3-6s
Pennsylvania municipal market has
issue
new
in recent weeks, the lack of activity from this source has
offset in some measure by the reappearance in the market, via
been quiet
Philadelphia
Walnut
securities
which
he
has
number of
Williams,
Street
ye^rs.
who has
since
"way
when," will continue to serv¬
ice her
own
clientele.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4392
161
Volume
PHILADELPHIA
TRANSPORTATION
3-6s
2513
2039
'
DIRECT PRIVATE WIRE
PHILADELPHIA TRANSPORTATION PREFERRED STOCK
TALON, INCORPORATED
COMMON
v
FEDERAL WATER & QAS COMMON
•
;
.
We
pleased to
are
LUKENS STEEL COMPANY COMMON
DELAWARE
POWER
&
LIGHT
PHILADELPHIA
ELECTRIC
PHILADELPHIA
ELECTRIC
announce
that
\
COMPANY
COMMON
$1.00
MR.
PREFERENCE
ALFRED
M.
NEW YORK CITY
DICK
,
Reed, Lear
is
Members
associated with
now
Pittsburgh
Rambo, Keen, Close & Kerner, Inc.
Exchange
X
Investment Securities
Branch Offices:
1518 Locust Street, Philadelphia
/
& Co.
Stock
us
LEWIS
Private telephone wires to New York and Baltimore
C.
DICK
Meadville, Pa,
CO.
• PITTSBURGH
Washington, Pa.
r
Investments
The Mutual Fund
1420
WALNUT
ST.
PHILA.,
•
PA.
What It Is—What It Dees—Advantages
WESTERN PENNSYLVANIA
June 4th, 1945
By WALTER L. MORGAN *
Mutual Investment Fund
written a clear
I doubt if there has
Yet
bonds
well
and
preferred
commons
as
the
established
in
layman rather
ment bonds
as
to
than the mar¬
ket
How
expert*^
statistician
to what
as
Mu¬
a
Funds
their
advan¬
what
dends,
real
a
It shows why so
story.
Mutual
their
whether
Funds
to
turning
are
What
is
Investment
Mutual
a
us
that
suppose
you
have $500. or even $5,000, to in¬
vest. If you invested this money
yourself you would buy at most
only four or five different stocks
or
bonds; but, if you and many
Some
buy
and
for
bonds
and
stocks
wider list of
much
a
protection
profit.
endowment
funds,
lodges, professional and semi-pro¬
colleges,
hire experienced
management to care¬
if
Now,
you
investment
fully select and watch over your
investments and deposit all
group
these securities with a
bank
as a
have, the
equivalent of the modern Mutual
safeguard,
would
you
Investment Fund.
Your Dividends?
checks
are
Dividend
Mutual Fund
—
mailed to
shareholders
usually
months.
~
,
every
three
basket.
in
money
America's
American
stocks and
a
some
Mutual
common
dividends
on
When
vestments.
on
are
sales
net
paid to shareholders and
income. v
•
How
for
—
Are
Your
Your
safety: and
are
profit
invested
or
more
industries.
your
dollars
fied
by
are
further
spreading
*Condensed
20
Frequently
from
illustrated
copyrighted booklet issued bv Mr.
Morgan who is President of Wel¬
lington Fund.
In
many
Mutual Funds
financial author¬
its
any
pre-war
Additional
K.
Barclay,
Stein
Jr.,
for
April net operating income of
Pennsylvania RR. was $9,397,623,
compared with $8,810,307 in April,
1944.
and
of
of' Pittsburgh
purchase of
trolling
interest
,
au-rj
con¬
Canadian
in
Refractories, Ltd.
as
adviser
and
stockholders
sale
to
of
new
lower-dividend convert¬
a
ible
common
preferred.
merit
toward
receive in four checks
their share of many
of dividend checks
speculative
disposed
possessing
are
the
favorably
common
shares
of
Pennsylvania Engineering Corp.
year
of
New
Castle.
Through its wholly-owend sub¬
interest
coupons.
settlement
and
continued management
of estates are greatly simpli¬
event of death
outstanding in the amount
on Dec. 31, 1942, will
have been completely retired out
of earnings on July 1, 1945. Sales
Quarterly reports keep
holders fully informed.
share¬
for Mutual Fund
guaranteed because
you can turn your shares in
to the Funds for cash and re¬
ceive their exact liquidation
value whenever you decide to
market
is
of the Mutual
Fund then is to give aid in solv¬
these fundamental problems
facing all investors, how to pro^
In
:
the
addition
Benjamin Franklin Hotel 5s 1960
Pittsburgh Hotels 5s 1962 "
Pittsburgh Hotels 5s 1967
Phila.
Phila.
Transportation Pfd.
Transportation 3-6s 2039
Strawbridge & Clothier
Pfd.
Com.
&
his
to
Fuel
Administration, 1918-19; and
Director of Conservation, New
Fuel
Administration,
Samuel K.
Phillips & Co.
Members Philadelphia Stock Exchange
Packard BIdg.,
Philadelphia 2
Teletype
N. Y. Phone
PH 375
REctor 2-0037
1917-18.
Cobb
Mr.
with
career
in
began
Cobb
1908, and
until
was
&
Trust,
his business
Co., Boston,
associated there
In 1919,
1917.
Bankers
Missouri
he joined the
has
been
and
Vice-President since
Public Service
1922.
Corp.
Common
industrial
His
connections
in¬
following:
and
Central & Southwest
Director
of
the
Company since 1937.
Director of the following: Ander¬
sen, Meyer & Co., Ltd.; Bankers
Safe
Deposit Co.; South Porto
Rico Sugar Company;
Brooklyn
Eastern District Terminal; Great
Western Sugar Company; HaveCity
Utilities
Land
$7
,
^
^
Pfd.
*.,.1
;
,
:t *Cf-
,
BOENNING & CO.
1606 Walnut
St., Philadelphia 3
Pennypacker 8200
,
PH 30
,
'
&
meyers
Elder,
Inc.;
Montana
Private
Coal
Phone
COrtiandt
Chrome, Inc.; Scranton & Lehigh
to
N.
Y.
7-1202
*
C.
* '
—
Co.; and Metallizing Co.
aw
Pennsylvania
Complete Investment
and
and New
Brokerage Services
Jersey
Municipal Bonds
of
$2,025,311 in 1944 produced a
profit of $103,363, equivalent
to $0.85 per share on the 120,665
outstanding shares. Book value is
net
to be $12.92 per
Current market, about 4.
reported
share.
*
Rakestraw, Betz & Co.
Members
New York Stock
tect
your
estate through diversi¬
fication, make
management,
it grow by good
obtain
con*
and
tinued dividends.
-
Exchange
Philadelphia Stock Exchange
Dolphin & Co.
Fidelity Philadelphia Trust
PHILADELPHIA
123 S.
story
Office
posts, Mr. Cobb pre¬
viously served the Government as
Director of
Conservation, U. S.
debt,
sell.
real
of
forces.
of $419,500
fied.
shares
di/versified line of steel mill
blast fur¬
equipment including
naces,
cars,
ladles, rolling mill
tables, hot blast stoves, gas wash¬
ers, cupolas, open hearth furnaces
hot metal
mixers, etc.
Funded
a
the
complex business of disposal
: overseas
surplus of the
President
slocks
PHILADELPHIA
assumed
consultant
to
Moncure Riddle & Co.
all
clude the
Dealers alert to under-priced
Interest
industrial
Co.,
and
has
part-time
business leaders to aid in the vast
England
Lancaster, Pa., will vote at
special meeting June 25 on a
recapitalization
plan
providing
for the call of present 6% cumu¬
lative preferred and the issuance
City,
a
Vice-Presi¬
Trust Co.,
Cobb,
Bankers
Army-Navy Liquidation Commis¬
sioner, Thomas B. McCabe, Com¬
missioner, announced on June 4.
The
Commissioner
pointed out
that the appointment of Mr. Cobb
is in line with the policy of the
OANLC
to
secure
outstanding
as
a
S.
the
York
armed
The Harbison-Walker Refrac-
&
Army-Navy Liquidation
Augustus
of
1968/54
115.664
To Net 1.20%
Ccbb Part Time Consultant
Corporation Notes
the
3/4% Bonds
January 1,
costs.
Price:
duties
Co.
Philadelphia
to
exceed
New
nounces
considered
are
nance
Fulton, executive director
NASD, attended this Associa¬
tion's joint governors' and advis¬
ory council meetings at Seaview
Country Club, Absecon, N. J., last
Monday and Tuesday.
tories
cars
$50,000
City of
important factors in gaining
of
Advan¬
Fund.
ing
These
that
sidiary, Pennsylvania Engineering
Works, the company manufactures
The
additional
PCC type
and has another 100 cars nearing
completion.
first
year.
PG 496
received delivery of 65
cars of the
high-speed
holding patronage and in
reducing operating and mainte¬
This
5. A
Teletype
Court 2380
and
greatly simplifies income tax
returns. ' v
"
/ ', .
They do not have to bother
with investment changes since
these
are
handled
by the
3. In
Telephone
reported for 1943.
It is
that current operations
compare favorably with the first
quarter of last year. Within the
last six months, the company has
lace H.
not
from ten to
through booms
in good times
292,180
publications. v
Are
and
over
of
in
Stock Exchange
reported
dent
hundreds
diversi¬
them
is
ranging
depressions,
bad.
1. They
:
statement
would
year
William
tages?—Shareholders are relieved
details:
in Mutual
Funds by spreading them over
the
Members Pittsburgh
BIdg.—Pittsburgh 19, Pa.
Bros. & Boyce, Edward Boyd, Jr.,
Harriman Ripley & Co., and Wal¬
of many
Dollars Invest¬
dollars
with
C. S. McKEE & COMPANY
Union Tr.
be
Stockholders of Hamilton Watch
by independent
4
keep
-
Pittsburgh Railways Co. oper¬
ating revenues for 1944 are ex¬
pected to slightly exceed the $21,-
occupied
expert man¬
Mutual Funds have had
ities and
profits are
augment regular
ed?
need
management record has been
notably good—a fact recognized
investments
of
will
workers
company's sales
those
doctor
the
the
securities, less expenses, are dis¬
tributed quarterly irrespective of
profits or loss from sales of in¬
they
You
experience
a
out.
of high optimism was
post-war
agement too!
2.
and
securities
different
enough.
diversified,
or
Mutual Fund.
realized
the
Experience
has
proved that merely holding a lot
Many
transition
"of
note
struck
lawyer.
a
stocks to give
The
going
are
being built. Ma¬
busy producing new
are
investor
average
he needs the advice of a
as
or
I
companies.
leading
balanced,
Interest
A
needs ex¬
pert financial advice just as much
The
believe your money should be di¬
vided
among
bonds,
preferred
you
in handling investments
operating such success¬
companies as General Motors,
Telephone and du Pont.
ful
ones
are
thousands
management is just as im¬
What
Funds is put to work in over 100
different securities including
v
it is in
and
dividends from a
Mutual Fund may vary but their
continuity is assured because you
do not put all your eggs in one
Your
tools.
to accomplish.
coming into the
Important?—
Management
portant
and
of your
amount
for the
proof of their suitability
investor.
The
—
convincing
average
is Afforded of
Dividends?
is
This
investment.
20 years, or more,
.
What Assurance
Continued
Receive
buying
are
Mutual Fund shares as a "sound"
of
When and How Do You
investors
fessional
as
Old-
chinists
Fund
number of insur¬
companies,
corporations,
Good
are
of
large investors.
are
Is
presses
piece
the
dollars
require
millions
Foundations
An increasing
others combined your money you
could
months
take
New
es¬
ance
Fund?—Let
are
will
and
individuals, many with only a
few hundred dollars of savings.
$100,000.
tates amount to $1,000 or
pro¬
tremendous
which
of
by hundreds of thousands
owned
work
a
spending
of
investors
many
change from
for months,
Mutual
Owns
of
Shares?—Mutual Fund shares are
Walter L. Morgan
the
is
cars
plant.
Mutual Funds
Act of 1940, and by laws and
Who
man¬
agement,
di¬
versification,
is
under
regulations of many States.
expe¬
.
rienced
trust company.
pany
divi¬
tinued
held by a bank
regulated by the Federal Govern¬
ment under the Investment Com¬
con¬
that
road
are
Activities of
in the
of
form
(Continued from page 2512)
stated
the securities
fied Public Accountants.
shareholders
receive
of Mutual
Mutual Funds
protective invest¬
ment restrictions, and are audited
regularly by independent Certi¬
do,
tages:
Assets
Funds Safeguarded?—First of all,
operate
Mutual
What
Govern¬
conditions warrant.
the
Are
and
DISTRIBUTION
Pennsylvania Brevities
as
reserves
ducing shells and bombs to mak¬
ing automobile bodies and rail¬
or
is.
Fund
tual
cash
stocks
with
*
TRADING MARKETS
been
RETAIL
understandable
ever
.
,
story
concise
have just exceeded the billion
resources
dollar mark by a good margin,
Broad St., Philadelphia 9
PhiladelphiaTelepbone Kingslcy 3311
New York Telephone Hanover
2-2280
Telephones: '
Building
9jt
'
"""*
Philadelphia—Pennypacker 4648
New
Bell
York—HAnover
System
2-9369
Teletype—-PH*299^
<
THE
2514
COMMERCIAL & FINANCIAL
225 million tons of
Future
The Railroads Face the
press.
From 1940 to
(Continued from page 2502)
of peace.
ways
Then,
too, there will be transportation,
as there has always been, and to
the extent the
it
railroads can make
alert, courte¬
vigorous transportation
ous,
ani¬
by
a
nation.
This final transition to
to
ress
the ways
will of course be in prog¬
some
extent before the
of peace
best
employes;
from the
program
that
proportion of
inter-city freight transporta¬
fullest
from
70% in 1942 and
71% in 1943 and
ger-mile total of 1939.
As a sidelight, I might add that
wards
ready with the first plans for re¬
conversion of industry. If this de¬
1944,
is
productive capacities
two-front war and a one-
a
the
than
was more
billion
total for.
annual
a
thou¬
On
ton-miles.1
the
side the several agencies
transport (excluding the pri¬
passenger
of
automobile, which
was really the war's biggest trans¬
port casualty)
handled a peak
vate
then indeed it will be a
good thing for us all, as it would
,the shock of complete
reconversion after final victory. I
for it if it will not
than
when
sand
cushion
am
1939 to
all carriers
our
front war,
in
better
to
slack be¬
as
for
62%
and
measured
so
to take up the
total
passenger
in
business
1944
roundy
of
135
billion
passenger-miles. The rail¬
road's proportion of this business
rose from 61% in 1939 to 71% in
delay the
final victory. Nothing
must be allowed to interfere with
date of that
1944.
to
Without the tremendous excess
the war in the Pacific to
earliest possible completion.
the
capacity of the railroads, this vast
growth in our national transporta¬
tion needs could not possibly have
press
Railroads
War Burdens of
been'handled.
As we turn from our maximum
war effort toward the first glim¬
merings of
it.
an
pay
eventual final peace,
would not do
for
us
called
II
we
upon
the
the
railroads to as¬
thousands
of them
From
stage at the time of
nation's customary peace¬
time burden of transportation.
;
In do not need to remind you of
casualties
suffered by
auxiliary methods
>
these
of transporta-
new
workers, many
and young people,
women
Pearl
our
Harbor
call.
to
the
There
December, 1944, the railroads
transported
approximately
37,-
members of our armed
special troop trains or in
special troop cars attached to reg¬
ular trains. "This figure does not
include many millions of railway
journeys made by uniformed men
and women traveling singly or in
small groups in line of duty or on
furlough. For the army alone we
200,000
ognize in human relations—and it
is just as true in any other busi¬
ness
is
principal duty
for the
28,000,000
some
in
men
who
work.
whom they
have heard too much
Pa¬
the
be
contribu¬
Another
they make to the solution of
the nation's many problems after
tion
the.war.
So the question is: After
the
what?
war,
the
Post-War
The
of
Man¬
,
agement
One
the
thing I
railroads
see
after
the
tremendous challenge in
of
human
been
relations.
us on
war
The
railroads
tute
an
is
after
on
to higher
a
in
said, and truly.in my opin¬
the
after
war
is
new
need—new equip¬
machinery, new meth¬
ods.
Our
task
they have
In
and
is
Specializing in
Railroad Securities and
Reorganization Securities
people
liant
First
Not
record.
was
in
United
aijd operations.
closed
were
has been de¬
supply is ex¬
Europe must have hous¬
ing
materials, machinery, farm
equipment, locomotives, cars. It
cannot produce all of this material
machinery
stroyed; its food
ished;
hausted.
of
ages
men
the
and
long time continue to look to the
United States.
It has a starting
credit of
which will be used
to buy goods here. Then, too, our
overseas
expeditions during the
war have helped to spread knowl-;
edge of
American
products
throughout the world. People in
other countries know better what
a
eign trade
that
more
of
more and
tremendous post¬
realize
to
our
here.
as
many
the
We
PFLUGFELDER, BAMPTON & RUST
have
enormous
railroads.
we
in
that
be
these
upon
days
and
another
to
after the
war.
thing I
see
the
of
traffic
If
.traffic
enterprise
American
I am
fantas¬
an understatement.
really as smart as our
we
ahead
tradition
to
can
be,
our
I
of
greatest
believe
am
not
has
taught us
dreams
• I
for
exceed the
we
dreamers.
will.
mil¬
prophesying the
There will be many
and
desperate problems confronting us
after the war is fought to a finish-
However, I do not think we
shiver
the
our
we
lennium.
fur¬
in doing that.
Upon
depends the security
are
American
one
simple statement that
everything else depends upon our
success
for
the
rea¬
pos¬
nish the lifeblood of our railroads.
It seems to me
unnecessary
to
prove
•'Av-.-A
..
tic and call it
years
which
'
face
in the railroad business after
war
is a struggle to sustain
sources
rehabilitation
world
post-war world.
tempted to take the most
us
the
fully
expansion
best and most lasting con¬
our
of
Still
of
tribution
in
The Need of Sustained Traffic
of
rate
a
keeping
tunities
be
come.
v
them
Some fantastic things are being
said nowadays about the oppor¬
demon¬
must resolve to
the
fill
It will be up to
so
well that our
with the increased
consumption which we are ex¬
pecting here at home. That will
Ask
we
to
tinue
possibili¬
As
and
orders already on hand
foreign trade will deserve to con¬
in America
demonstation
utmost
sibilities
to
tests
any
the seas as
have, a great
beyond
outlets
well
us
will re¬
capacity to produce
quire
grand job."
two
for¬
before. We
than ever
coming
are
great
met
dis¬
being
is
interest
played by our own people in
will get the ringing
"They
have
certainly
needed—the
lize
have to offer.
Greater
war
have
billion" dollars
five
some
in this country
you
the future
i
imports, must for a
of its
many
ser¬
materials.
railroads
ties of the
Telephone—D1gby 4-4933
war
in /
These
N. Y.
the
the midst of unprecedented short¬
strated—if
System Teletype—NY 1-310
America, too, which prior
went to Europe for so
Latin
to
from
come
States.
United
the
others promised.
Special Analytical Service for Out-of-Town
Bell
that
Much of it must
alone.
Before the
on
dam¬
been
aged; factories have been demol¬
bril¬
span
Many of its
have
industries
basic
the de¬
improvement of
five
least
at
housing for millions.
plunged
the railroads into another, with
rapidly and greatly mounting de¬
mands for rail transportation in
done
NEW YORK 6,
a
for
States
after the war—and for much
longer than that if our business
people take full advantage of the
foreign trade situation. Europe is
devastated.
It must first provide
years
did
such
in
West,
Those frontiers will be not only
in this country but also overseas,
1 look for heavy exports from the
the
a
destiny of
our
v
in
made
the
only
further,
ment of the
war
ever
answer:
61 BROADWAY
conversion
of
from normal
frontiers for Amer¬
enterprise greater than this
country has had since the settle¬
has
test, and
York Stock Exchange
the
ican
we
how
Members New
communities,
will open new
undergone
any man on any street
Dealers in Railroad Securities
the
leadership in the: post-war world
they
itself would
have been no mean achievement;
more than that, they made in the
depression
years
the
greatest
strides
any
American
industry
which
•survive,
books
"Guide to Railroad Reorganization Securities''
it—keeping
developments,
industry
still
And
of the railroads. The
revenues
time
of
in
Certainly,
those
years
has
test,, the outbreak of
Publishers
of
these
r—
American
fully than
fifteen
last
business
great tests.
vices
..
of
along their lines.'
been met before.
ever
the
meet
to
more
railroads met that test with
BROKERS
situation, and that
thick
munities, and the people—all the
over
greatly
needs better and
ion, that the greatest asset of any
consti-
ment,
two
STOCK
that
the
leading the way to bring the fruits
pression, which halved the traffic
and
in
abreast
industry
That
imagination.
will
often
of America
industry calling tot crea¬
needs—and
the field
It has
of
ahead
see
business
is to continue
war
tive
ahead of
I
ground in the never-ending evo¬
lution of the art of transportation.
'•
Problem
thing
railroad
the
in
us
forces in
•handled
of interest between
work and those for
clash
those
there
it is in ours—is that
as
no
•
will
be
is
setting my brought about the greatest pentaim too high. The first and most up demand for goods of all kinds
important thing we have to rec¬ that we have ever had in America.
immediate future, .as I
transportation
to
There is
place for the railroads
one
believe I am
In the past we
about capital
cific War and for those phases of and labor with one set off against
the reconversion program which the other.
We ought to discard
are
already beginning to unfold. such terminology and the confu¬
That will require no new develop¬
sion of thought for which it has
ment on our part—only more of
come to stand.
In the better world
the same we have been doing. For which we confidently expect to
the
long-pull
post-war
future, follow this war, our hope of prog¬
however, we must first of all ress lies in having much less com¬
agree upon certain guiding prin¬ petition and much more co-opera¬
ciples and hew to the line they tion in human relations.
set
us,
come what may,
in the
Equipment Improvement
certainty that the test, of their
upon
post-war economy.
a
only
production to war production has
will
that
I do not
the railroads is to concentrate
on
to
dividual in the industry.
dict of history.
For the
sharing of
railroad
i
^
some
of these developments to the com¬
•
BOND
are
stimulate every
worker in every rank to put forth
his best efforts at all times; and
a character of leadership that will
win and deserve to win the con¬
fidence and loyalty of every in¬
opinion it was well earned. The
importance of the part the rail¬
roads played in the outcome can
be recognized, I am sure, without
any need of waiting for the ver¬
soundness
end
of
alto¬
gether a railroad war as far as
regards overland transportation.
Xet those newer carriers by 1939,
the last year of reasonably full
/peace, had assumed a great deal
the
of
who have rallied to
carriers had been only in
World War I; it was almost
of the
railroad
our
particular to the "old
heads," whose steadiness and ex¬
perience have meant so much in
the training of the hundreds of
Between World Wars I and
in America developed
a
embryo
of
and..skill
workers—in
good many types of carriers aside
from
railroads.
Some of these
newer
a
tion
to forget
effort
the burden which that war
sume.
For this I want to
sincere and well-deserved
tribute also to the loyalty, devo¬
;
1944 was
greater than in any year since
1930, and the railway payroll was
the highest in history. Our stake
was victory in Europe, and in my
have indicated, our
determination
collective
our
railway employment in
and
the
managerial, in¬
formation with all railroad work¬
ers; recognition and tangible re¬
1918 performance and, par¬
enthetically, more than four, times
as
large as our pre-war passen¬
tion in the United States rose
timed
rail!
of serv¬
the American people.
ice to
balanced and sound
a
of indoctrination
training; a continuing plan for
ing
railroad
the
and of the
(American spirit in particular to
expect otherwise at this propitious
time. >We are in that phase al¬
trend of human nature
tween
tools
the
roads better instruments
our
man
expressed in some estimates with, a total of 96 billion passen¬
Asspciatipn* of American ger-miles, which was considerably
Railroads.
These estimates show more than twice the correspond¬
completion of the war with Japan.
Ii would be
against the whole
velopment
too—who
women,
new
make
,
combination of men
and management seeking in unity
first of all the welfare of all the
mated
willing
men—and the
the
railroad more than doubled.
UnloadingsTor that purpose atall
American ports in 1940 were 818,000 carloads.
This business grew
the
to
,
it will be keen,
so
must have
co-operation of the
have
must
we
utilize
and
obtain
great asset. We
of that
people' who
railroads.
We must
seem to be pessimistic
concerning
arouse and maintain their interest
the future traffic of our railroads
was
limited,
submarines .came through 1941 and 1942 and 1943 to and initiative. We must marshal 1 am not one of
them./We are
along, even the Panama Canal be¬ a record' wartime top in
1944 their energy and enthusiasm. We in the midst of a great
industrial
came out of bounds.
The "stand¬ totaling 1,913,000 carloads. In all must bring about real understand¬
revolution in America—a revolu¬
by" service of the railroads was kinds of freight, the railroads ing— in both directions—between tion in which new
methods,
new
called upon again and again just handled during 1944, our last full those who supervise others and
processes, new materials and new
those
who
work
under
super¬
as.there was being added to the
year of the global war, an
allproducts are changing the indus¬
;
customary civilian traffic the im¬ time record-breaking total of 738 vision.
trial map of the country. A sim¬
I want our railroads to lead tne
mense
war
traffic in .materials billion ton-miles. This was nearly
ilar revolution is going on in agri¬
and
supplies demanded by our Rouble the corresponding traffic way in a truly creative partner¬
culture. The end of the war will
of 1918, the big year of World. ship of men and management. As
fighting forces.
* ,-■*■'
*
find us not going back to a pre¬
What this meant in increased War-I. In 1944 we likewise broke , I see it, this involves: the finest
war
economy but going forward
dependence upon the railroads is all fecords in passenger traffic} selection we can make of new
may
ether
the lasting
'
1944 export freight
by
tion in the early months of Amer¬
ican participation in World War
it. Rubber was curtailed, gasoline
there will be anbe soon!
transition period back into
what we all hope and pray will be
employment of our workers. Upon
our traffic depends our
ability to
business is the people who work
freight and ex¬ ior.it: The challenge which 1 see
in railroading is to make the most
movements, and
troop
organized
Thursday, June 7, 1945
CHRONICLE
Rather
I
and
think
shake
we
nize
our
assets
bilities,r' make
as
look
to
the future full in the face,
1
need
them.
over
need
recog-
well as our
courageous
lia¬
plans
Number 4392
161
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
to see them through.
and resolve
Such a spirit—as I read the record
is the secret of all success we
the. building
in
had
America.,
have
of
gers, both old and new. You know
the war brought us a lot of new
passengers,
will
So much for the principles un¬
derlying our railway approach to
the post-war future. I think they
are sound principles and both the
railroads.; and
the nation will
benefit by our adherence to them.
;
Reconversion Problem
For the practical terms of their
application, I want to point out
that the railroads are one war in¬
dustry that has no reconversion
prolblcni. Our products are ton-
and passenger-miles.
miles
Our
locomotives and cars and
tools are
yards and shops and stations. Both
our products and our tools are the
same for war or peace. The skills
required to operate the railroads
for peace or war.
We will not have to close down
or slow
down for one moment to
the
are
same
change
over.
Also
not
does
That,
there will
mean
the railroads
On the contrary,
there will be vast changes. There
will be constructive thinking, con¬
be
change
no
the
after
constructive
planning,
structive
performance in both passenger
freight service. I am confi¬
dent that the next five years (God
of
in the tools
railway busi¬
transformation
est
and methods of the
that
ness
have
we
had
ever
in
anything like that period of time
—and I do not except even the
days of the pioneers.
"
transformation
"This
will
be
in the direction of mod¬
were already doing
mainly
ernization. We
of
lot
a
this
that,
recall,
you
started.
war
when
We will pick up
where we had to leave off
the
and
along,
came
war
yvhen
as
promptly as materials and man¬
power become available we will
add all the other things we have
since figured r out, plus the new
developments' that, can be gar¬
That's
learned.
we
suppliers
our
a
big order—but
have the funds and the plans
arid the confidence dnd the cour¬
hind
the
well
scenes
customers
on.
It is not
and
speed
the
nor
start
had
Service
Freight
Faster
in
started
service
points
to
distant
far
—
managed to
get along with deliveries twenty- '
four or thirty-six hours from the
points that previously
Chicago was
it was
our pioneer MS-1 that made pos¬
sible such service to Memphis, 527
miles away.
It provided pick-up
of less-than-carload freight at the
close of one business day here in
of
time
shipment.
interested in that, because
We
have
to
build
in
added
quality
and
dependability all the way up,
including bridges, signals, termi¬
nals, communications, cars—and
last, but not least, better informa¬
tion and understanding
among the
personnel charged with getting
out the needed
long
performance. It is
and a hard one, and
row
have to hoe it all the way;
we
These
be
must
"
the lines along which
are
exerted
our
for
pressure
continuing evolution in the art of
transportation.
I
wonder
how
many of you
mind
have
the
all
railroad
pen
taken
think
improvements
in
transportation you hap¬
know about that have
to
place
suggest
called to
ever
in your lifetime.
it
try
you
some
will be
you
I
time:
amazed.
I
And
unless you have spent a lifetime
at railroad work, the improve¬
ments you
happen to be acquaint¬
ed with are only a tiny fraction
of all that have taken place. There
have been vast, improvements
all
in
departments—improvements in
all the services of the
railroad, in
operation, in the tools
methods of
and materials used, in
the design
everything that goes into the
of
work of the
railroad,
in the
even
training of the workers and the
organization of the work. Trains
still run on tracks, but that is just
about the only thing that hasn't
dynamic quality is one of
the outstanding characteristics of
railroad.
the
We
-
cannot
stand
are
never
have.
we
We must be
con¬
for the better.
part of what we
planning
is
big
a
have ahead of ds on the
and
satis-*
cannot be satisfied, with
we
stantly
That
We
we
railroads,
will work at it, you may
with all the energy and
sure,
intelligence of an alert and
pro¬
at the
organization.
And the
make and put to use
will mean a lot to you as business
I never saw a
train
on
which business
faster than
on
freight
picked up
MS-1 from the mo¬
service. I
cite it here as an example of>the
type of service that makes a rail¬
of
ment
liked
road
There
of
its
will
entry into
customers.
further expansion
among
be
schedules
such
its
in
post-war
freight service will be
on faster schedules that
can and
will be maintained with the same
days.
All
schedules of our
passenger trains.
fidelity
finest
*
There
likewise
as
the
improvements
freight terminals to
will
in
be
shipments
and to reduce expense of hand¬
lings Special • service equipment
will also be provided for freight
expedite
that
and
moves
in
protect
-
carloads,- particu^
all
to
citizens
and
of Chicago and
people who live along
the
railroads and look to railroads for
the
bulk
of
their transportation,
both in war and in peace.
recognized all over the globe
as
the world's greatest railway
center.
The railroads made Chi¬
been
great and can keep her great.
They can do so especially in the
cago
post-war set-up of industry and
commerce,
for that will, surely
dependable
require
perishables and
freight.
There
will
better
streamline
trains,
And Chicago
rely
upon
its
should be able to
railroads
future as it has in
post-war
in
the
the past, for the
railroads, to survive and
must have the same sort
of confidence and courage that
made Chicago so great a railway
center. It is the "I Will" spirit—
orosper;
spirit that can meet and over¬
come competition.
For, of-course,
the
we
are
going
to
have-.post-war
with
competition
deavor
in
in
all
this
country
than
of
styling, comfort and con¬
venience—all based upon our own transportation. The railroads have
studies as well as analyses of the survived that ordeal; I know of no
needs and desires of our passen¬ reason to shrink from anything*
smart
to the bearer
maker,
the
issued
the rivalry
the
promisor, the
They
gold
are
■———
re¬
quired of the F, R. banks
the
.
,
license"
gold"
for
at
of
as
for
of competing forms
domestic
(page 33); ".
is
not
.
The
.
convertible
(41); "Surely
United
the
use,
an
States
is
dorsement of
Reserve
Act, Sec. 16, lie.)
The
Government is therefore secured
against
as
the
bank;
the
bank issues the notes to
F.
R.
member
banks upon security delivered by
the member
banks,
which
dis¬
tributes them to the public.
Prior
1934
to
the
dollar
was
25.8
grains troy of gold 0.9 fine
(U. S. Code, Title 31, Sec. 314).
(4);
1933,
,
which
President
March
and
approved
was
6,
confirmed by Act of Congress of
March* 9, ~ 1933.
The gold was
into
gotten
the
proclamation
Dec,
30,
F.
banks
March
of
1933,
R.
and
by
Order of Dec. 28, 1933.
by
9
and
a
example, at
p.
well
very
en¬
member bank"
is
reserve
(21, 22, 29,
sary
not
40, 41,
29,
,
.
neces¬
50); for
might
you
them* without
issue
anything back of this, currency,
anything back of the Federal Re¬
serve
note, as I have advocated
for a long time.
We are prac¬
.
.
.
tically
the only country in the
world that requires collateral."
The terms "backed
The transfer of gold was stopped
by
proclamation
of
Roosevelt,; effective
that
some
behind
it"
are
Promissory
evidences
secured
of
by" and "has
unknown
notes
and
debt.
by mortgages
in
law.
bonds
They
on
Masters With
(Special
pawn
to
Kuemmerling
Financial
The
INDIANAPOLIS,
Masters has
G.
iam
Chronicle)
IND.—
Will¬
become
asso¬
ciated with Don D.
Kuemmerling,
Building, Cincinnati,
Ohio. Mr. Masters was previously
with Henry K. Dalzell and Thom¬
son
& McKinnon. In the past he
Union Trust
of
officer
an
was
M.
Crist
P.
are
can
be
real
or
possession of the creditor, or of a
his behalf. The gold
the gold certificates which
third person in
and
delivered
are
issue
of
banks
the
are
held
the
ment,
creditor.
as
security
notes
debtor,
Gold
the
by
not
Reserve
Act
Jan. 30, 1934.
ises to pay
the
of
gold; it refuses to
notes
recourse;
'according
The
is
no
has
no
remedy,
law,
..
The
answer
to
the question is,
No.
EDWARD HENRY NEARY.
Port Washington, N. Y.
ap¬
Roosevelt
the
but
Railroad
Gold
President
day
Roose¬
velt
depreciated
the dollar
59/105 grains of gold 0.9 fine
15
10
to
Stock Shares
5/21 grains.
Under the'Act of March 9, 1933,
and the Order and
it is
Proclamations,
crime to possess gold, pun¬
a
ishable by $10,000 fine, or impris¬
onment for 10 years, or both,
A
Resolution
Joint
proved
June
5,
promises
to
and
ap¬
dollars in gold
weight and fine¬
pay
coin of the then
the gold clause.
Perry
void
U. S.
to
as
United
the
of
v.
Railroad
This Joint
held
was
obligations
in
was
President Roosevelt
1933, which made void
by
-
States
294 U. S. 330.
Whereupon
Congress adopted a
Resolution,
approved
by
Joint
Bond Shares
President Roosevelt Aug. 27, 1935,
withdrew
which
the
United
the
gold
the
States
be
to
clause and
Chairman
of
sued
on
»■
for damages
for the seizure of the
The
of
consent
*
.
n<k
gold!
■
the Board
Classes of
of
fk*
Governors of the Federal Reserve
System
Feb. 20,
on
statement to
the
future
1945, made
Group Securities, Inc.
a
the Senate Commit-
may
have in store for
them.
No Fear of Competition
Prospectus
As for me, I say of competition:
Let it come!
Give us policies of
cive
to
take
the
and
of
care
Make it
truly
vival
the
of
be
semblance
some
opportunity,
will
will
that
government
a
on
Request
condu¬
equal
of
railroads
themselves.
struggle for
sur¬
Underwriters and Investment Managers
fittest, and the rail¬
roads will not be found wanting:
Our
generation of railroaders can
to our greatest traditions.
live up
This
because
they
the
will
do,
nation
have
I
needs
railroads
We
must
for
America— solvent
DISTRIBUTORS GROUP
sure,
am
INCORPORATED
them.
in
and
railroads,
63 WALL STREET
/
NEW YORK 5, N. Y.
strong railroads, manned by alert
and
under
sound policies of government, and
commanding the confidence of the
American people.
war
Sales Offices
respected workmen, directed
by progressive management, mod¬
ernized to iit the needs of post¬
America,
operating
..
BOSTON
CHICAGO
no
property subject to his con¬
The banks received
to
next
pay
he cannot collect; there
trol.
which is property in the
certificates for the gold expressed
in dollars, not in ounces, payable
the
and refuses to be sued; the holder
Treasury
President
by
R.
The Government prom¬
The title to the gold was passed
by
the
F.
Govern¬
the
by
on
the
to
to and vested in the United States
proved
&
Co.
personal property and py pledge
or
of
Corp., 2 Wall Street, New York
City. Mr. Lynch was previously
with Blair & Co., Inc.
In the
municipal department.
im¬
not
and
(Federal
cur¬
into
proved in credit standing by
securities.
and
obligation
least 40% of the amount received,
other
He
to the F. R. notes:
be exported only under
can
The bank
certificates
on
tgold redemption is now not
permitted
gold
rency
to
on
issue of F. R. notes to them.
said, in part,
asso¬
municpal bond
Mellon Securities
—
—
.
Banking and Currency
S. 510 to reduce the security
on
the
Treasury
Federal Reserve banks.
delivers
tee
pay
debtor.
the
by
to
a
United
dollars
demand, i.e., the
on
is
is
note
the
by
America
of
Government
large-scale
transportation as an essential part
of manufacture and distribution.
transportation —
intense, keen competition. Every¬
body
surely
knows
there is noth¬
power, better cars,
elimination
of
terminal
delays. ing new in that. The last twentyPassenger service, too, will be im¬ five years have witnessed no
greater rivalry in any line of en¬
proved.
There will be more and
other fast
be
better
better track,
larly
States
Reserve
promise
Resolution
beginning of the
appreciate.
Federal
ness,
we
business day.
most
A
written
gressive
Memphis
Chicagoans especially will have
following
That's an advantage a lot at stake in post-war rail¬
shippers could —and did — roading; for this city has long
Chicago and delivery in
remarks to them.
my
plans
men
$26$——
our
has become
the
with
department
or
Twenty-two billion of
we
what
be
>
Our business is "movement,
have to keep bit the move
$till.
Frank Lynch
ciated
"backed by," or is there "behind" it, or is it
by reserves of metals?
currency
by, metals,
Reserve Act forbids the payment.
changed, even in my time.
This
our
billion money outstanding consists
of Federal Reserve notes.
I limit
to
foundation, with im¬
provement in the track, and we
have
Is
secured
Lynch Is Now
With Mellon Sec. Go.
Editor, Commercial & Financial Chronicle:
going
the
at
lied,
the trend we
progress when the " war
was
overnight
freight
example of
is
adaptability of the equip¬
all the time,
One
where
matter of the power
of locomotives alone,
them.
Neary, Attorney, Points to Statement of
Chairman of the Federal Reserve, Board That There Is
Not Any Tangible Collateral Back of Federal Reserve
Currency.
-
railroads
what
see
Edward Henry
a
a
behind
ment
the
on
Frank
,
require
in the open
out
as
the
and
it out.
age to carry
them
good deal of work and money be¬
industry have meanwhile
all
and
what
from
nered
we
overlook the
schedules
ana
granting an early end of the Jap¬
anese war) will witness the great¬
keep
Says F. R. Notes Lack "Metallic" Backing
had
before;
to
must not
we
tenance
on
war.
best
our
whom
train
a
fact that improvement and main¬
a
*
on
for customers.
as
No
do
of
many
been
never
2515
SAN FRANCISCO
ATLANTA
Thursday, June 7, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
View
Cartels-A British
PRIMARY MARKETS IN
,
public ownership or
process is not only
desirable but inevitable.
At the
same
time, a
point frequently
arises in the growth and develop¬
ment of modern large-scale
in¬
New
NY
HUBbard
3-0782
CG-105
LOS
LOUIS,
ST.
NEW YORK, BOSTON, CHICAGO,
CONNECTING:
SYSTEM
.V1; Vi "
Bank and Insurance Stocks
This Week
—
Insurance Stocks
E. A. VAN DEUSEN
By
of
M.
seventy-ninth annual meeting of the National Board
Underwriters, on May 24, the retiring president, John
the
At
Fire
most comprehensive and instructive address. In the
emphatically and plainly refuted the Government's
contention that the fire insurance businesses a monopoly.
Said Mr.
Thomas, "we do not concede that our purposes and services are
Thomas, made a
course
of it he
monopolistic."'^
fire
developed a t
some
length,
e f f e ctively
which
convinc-
and
i
n
g1y
said
he
what
import¬
was
With this
ant.
in
and
,
mind, we
it
column fully
this
of interest
is
with
business,
insurance
This thesis he
concurs,
present a few
to
facts.
the
In
edition
latest
of
"The
Spectator" Insurance Year Book,
there
listed
are
372
fire-
stock
companies, 176
mutual fire insurance companies
insurance
marine
simple
called
present some
reciprocal and Lloyds un¬
derwriters.
Total assets of the
of Mr. Thomas'
stock
com¬
widely
most
and
oldest
ex¬
experi¬
analyzed
the
tabulated,
ence
of all the companies over the
scientifically reduced to a
classified
rating service resting
upon the mathematical accuracy
years,
and 41
of the law of great
large
a
and supervised
area,
officials
'insurance
the
numbers over
by
the
of
States in which any company op¬
erates.
is
of
Aetna
Fire
the
few.
a
of infor¬
regarding technical proces¬
They leave the door wide
ses.
Without that
monopoly.
point worthy of atten¬
system of rating, open to all com¬
stock
fire
equality of terms, only
the very largest companies with
the broadest experience on which
which
can
operate
asse.ts
panies
to
on
their
base
could
rates
public interest. With that
system of rating, all can enter on
equal
terms
who
can
qualify
in
the
,
the
under
state.
of
laws
their
It is equality of opportunity
equality before the law plus
and
equality
rates
of
access
adequate
the public
and insolv¬
to
that will protect
against
ency,
overcharge
and equality
the
terms
under
laws.
Monopoly
ditions
is
contract
in
standard
(Boldface
impossible."
: ■''
view
Thomas'
Mr.
of
;
un¬
qualified statements to the effect
that there
is
monopoly
no
in the
are
few
very
companies
insurance
be considered as really
large, that is to say, having total
in
excess
of
$100,000,000.
According to Best's.list of the "50
largest," there are only five such
companies,
implies the possibility, if not the
certainty, of taxing the consumers
by maintaining an
Continental
the
Nevertheless, a good deal of non¬
is now being talked
and
written about cartels, and politi¬
sense
123
coal cut in Europe was
rather
^
:
111,281,000
tween
$50,000,000 and $100,000,000
number
six; those with total as¬
sets between $25,000,000 and
$50,-
000,000 number 15, while 24 com¬
panies have total assets of be¬
tween
There
$10,000,000 and $25,000,000.
are
more
than
300
stock
every where was
The
tellectual integrity when discuss¬
New York
Securities
Hence
economic interest to do so.
Jefferson-
the break-down of the
ian
with its
philosophy,
concep¬
tion of individual liberty based on
and
competition
free
genuine
a
agricultural democracy; the tri¬
umph of Hamiltonian economics,
the
on
financial
urban
of
and the di¬
which confronts the philo¬
and industrial
lemma
and
concentration
consolidation
power;
radical in a world in
competition is largely
of date. The large-scale eco¬
sophical
which
out
free
nomic
times
of
of
modern
inevitable
outcome
organizations
are
an
modern
technique,
tend
and
increasingly to make competition
The problem is
facts?
sufficiently ser¬
objective consid¬
warrant
ious to
First of all,
what
are
the
The purposes of cartels are
as well as bad.
Fundament¬
ally they are an attempt to relate
production to demand, in order to
good
$10,000,000,
as
under
are
follows:
New
York
120 BROADWAY,
Telephone:
Slock
6
$9,000,000 to $10,000,000
t.
8,000.000 to
9.000,000
7,000,000 to
8.000,000
6,000,000 to
7,000.000
15
26_
5.000,000 to
6,000.000
4,000,000 to
38_
—
42
70—
ance
any
in
Members
NEW YORK 5, N. Y.
and
BArclay 7-3500.
Bell Teletype—NY
(L. A. Glbbs, Manager
1-1248-49
Trading Department)
1
New
otner
York Stock. Exchange
leo.div.? exchanges
WALL ST.
Telephone
NEW YORK 5
DIgby
4-2525
NATIONAL BANK
of INDIA, LIMITED
Bankers
Their export pol¬
the coal industry alone
upwards of £8,000,000. The Ger¬
mans
adopted a different tech¬
nique.
They carried out a
thorough-going rationalization of
their heavy industries by means
of a scientific concentration of all
the Government in
to
Kenya Colony and
Office:
Uganda
Bishopsgate,
London, E. C.
Head
26,
In India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
Branches
Subscribed Capital
Reserve
The
£2,000,000
,
Fund
£2,200,000
conducts
Bank
£4,000,000
Capital
Paid-Up
V
description
every
of
banking and exchange business
industries
and Executorships
Trusteeships
also undertaken
cost
icy
within
firms
the
for
industry,
single
execution
of
functions
by
independent
emerged
was
a
common
of a
means
central
executive.
What
a
series of great
the
list
are
to
Patrick
three
million
Here again the answer
producer.
is
international
in
found
be
to
the
production and
distribution of primary commodi¬
control
over
ties, through the establishment of
an International Commodity Board
with 'power
Corporation
or
to
purchase raw materials 011 a large
scale, to store them, to sell them,
and to build up buffer stocks for
com¬
exam¬
are
shown
insurance
stocks
of
Henry.)
it.
monopoly,
(Apologies
already
moved
far be¬
pig-iron,
ingots,
and
finished
steel; and centralized sales organ¬
izations
capable of conducting
ception of free international com¬
economic warfare with the mini¬
the
of
mum
the
to
loss
and
inconvenience
home
producer, or, alter¬
natively, of negotiating favorable
international
writer
present
agreements,
visited the
The
Ruhr
magnates,
Thyssen,
the
They
including
spring of 1928.
cated
international
in
advo¬
cartel
for
Yet:if the proposed in¬
organization was made
of
deliberately
petition.
ternational
instrument
designed
expansion
planned
and
initiate
direct
a
world
to
eco¬
based on human
needs, a lew vista would open
up for mankind.
We might even
convert raw materials surpluses
nomic
poiicy
the
from
menace
we
have
made
the coal, iron and steel industries
of Europe, which would stabilize
they
past into the blessing
ought to be.
For, in the
long
run,
production, wages, and prices, and
equitably
divide
the
available
anachronism in
an
"The
reason
your
coal
them in the
great
by
overproduction
a
world in
is an
which
of population are,
consent, inadequately
masses
common
industry is never out of
trouble," they said, "is that it is
comprised of hundreds of sepa¬
fed, housed, and clothed.
rate, competing and mutually de¬
structive units.
They won't even
speak to each other—so how can
approach to the car¬
tel
problem
differs
from that
which is still generally prevalent
in the United States mainly be¬
they speak to us?"
no
There can be
doubt that the Ruhr magnates
right.
throat
The policy of cut¬
international
competition
inescapable that
the only hope of
solving the
nomic problem presented
eco¬
by the
heavy industries, and those which
produce basic commodities, lies
output and the
their products.
distribution
of
Cartels
Applied
Agriculture
This
of
Attitude
cause
of
towards
trade.
.our
different
attitude
international competitive
It has been well summar¬
ized by one of our leading indus¬
trialists, Lord McGowan, as fol¬
lows: "There are few today who
would recommend a return
to un¬
competition as the basis
of our economy, either at home or
in export markets.
.
.
The fact is
that the very size of the big unit
restricted
.
di¬
prosperity 01
nation... The only solution is
to regulate production and Price®(
and to control competition in tn
that
its
prosperity is
rectly related to the
to
immediately brings us to
another, and allied field—the field
agriculture.
Here
again we
problem of potential over¬
capacity, due primarily to the dif¬
face
British
The
The British
means
1,000,000
stock
have
we
yond the nineteenth century con¬
2,000,000
are
they, in essence, but governmentcontrolled cartels?
It is clear that
of
tons
4!ooo,ooo *n international control over their
If this be
most
of
crease
3,000,000
daily quoted in the New
York Times.
the
of
a
1,000.000 to
market following. For
make
concentration of produc¬
level of efficiency which
produced an all-over annual in¬
a
tion at
2.000,000 to
Under
companies
which
units;
3.000,000 to
ple, only 52 of them
Exchange
Co.
V.
in the process.
The conclusion is
Total Assets
panies, comparatively few of them
are widely enough
held to have
Members
and ruined their heavy
proved disastrous to all concerned
No. of Companies
.^Although these 372 fire insur¬
Laird, Bissell & Meeds
the
desperately to
principle of free competition,
British clung
were
companies whose assets
,
Bought—-Sold—Quoted
being sold
production,
disgracefully low.
world markets.
Advantages of Cartels
The
Trust Co.
Bulletin On Request
Bank, Ltd.
Mills &
the purpose of stabilizing world
.trusts or corporations, encouraged,
recognized and supervised by the prices.
International
agreements
al¬
State,
but
enjoying
extensive
ready exist in respect of wheat,
statutory rights of their own.
This
process
involved
about oil, coffee, sugar. They will have
wide sector of the industrial field
12,000 capital reorganizations or to be improved in the light of
free competition is no longer com¬
bankruptcies. - It resulted, how¬ war experience, and extended so
patible with efficiency.; You can't
ever, in the elimination of almost as to cover at least meat, coal,
make people compete with each
all
redundant
and
uneconomic steel, and basic metals.
What are
other, if it is no longer in their
21
Christiana
Deacon's
Glyn
despite the fact that the general
standard of living of the miners
particular are apt to show
less than their usual in¬
eration.
Companies with total assets be¬
of
cost
the
below
cians in
160,096,000
148,632,000
137,711,000
Insurance
Fidelity-Phenix
Associated Banks:
Williams
in wages
reduction
a
ASSETS
£115,681,681
competition between Great Brit¬
ain, Germany and Poland ensued.
Within
two years every ton of
artificial level
prices, for the benefit of
monopolists.
'
of
$160,999,000
Amer.
No.
Insurance
TOTAL
resisted by the miners, and
resulted
in
the prolonged
coal
and
policies,
restrictive
Street, W. /
were
wasteful.
Fire—
Hartford
Home
follows:
as
of
Insurance
policy
under such con¬
is ours.)
In
home
there
that
is
tion
Burlington Gardens, W, I
Left to it¬ stoppage of 1926. The miners were
beaten, and a period of cut-throat
monopoly tends inevitably to¬
wards
Smithfield, E. C. /
64 New Bond
to grave abuses.
open
self
for
OFFICES:
an
was
mands
Scotland
Charing Cross, S. W. /
next
ents, and the exchange
based
Another
anti¬
"This business is the direct
thesis of
Forster
&
Crum
of nine companies, to men¬
group
tion
the
of six compa¬
group
and
nies,
Fore
companies,
seven
12
of
American
the
group
"fleet"
Home
the
' - ,.T;
:
;'
"fleets,"1 operating sub¬
one management,
within which competition may be
relatively nominal: For instance,
groups or
stantially under
companies,
8 West
immediate post¬
boom, during which produc¬
war
throughout
Bishopsgate, E. C. 2
49
European coal, iron and steel in¬
in the nineteen-twenties.
mation
companies
there
3
dustries
There
OFFICE—Edinburgh
LONDON
metals, which are subject to par¬
ticularly sharp cyclical fluctua¬
tions.
Take, for example, the
ing the subject. - Those of the
aggregated ap¬ right would have us believe that
observations, proximately $3,000,000,000; of the many industries which are, in fact
as follows:
mutuals, $21,000,000, and of the if not in name, monopolies, are
"Any group reciprocals,
$88,500,000.
Total subject to free competition. Those
of
men
or
paid-up capital of the stock com¬ of the left try to pursuade us that
women in any
panies aggregated approximately the solution of the problem is to
State, who can $353,000,000. Thus, there at once be found in the establishment of
meet the qualappears to be plenty of competi¬ the greatest and
most powerful
ifications of tion in the field.
First, is the monopoly of all—that of the State.
John M. Thomas
their
State's competition
between
the stock The truth of the matter is that the
companies and the mutuals, and natural evolution of the competi¬
laws as to character, capital and
reserves
required, can launch a second, the competition between tive system which has come to be
372
individual; stock
com¬
known as capitalism is towards a
capital stock fire insurance com¬ the
concentration of capital which re¬
pany.
They can enter the busi¬ panies.
ness
on
the same basis as the
Over a fairly
However, there are certain large sults in monopoly.
perienced of any of the companies
in the field.
There is available
HEAD
Branches
step tive capacity was built up beyond
the
requirements of the peak
is obvious.
If you can get rid of
load.
Slump came in 1921, fol¬
internal competition, why not get
lowed by a period of deflation,
rid of all competition?
Compacts
are entered
into with similar in¬ i.e., a fall in the general level of
which in Great Britain
dustries in other countries relat¬ prices,
was aggravated by her return to
ing not only to- prices, but also to
the gold standard at the pre-war
markets
(usually
divided
into
parity of exchange in 1925. De¬
specified sales areas), output, pat¬
The
character.
listic
7008
Enterprise
PROVIDENCE,
'
7008
Enterprise
PORTLAND,
6011
Enterprise
HARTFORD,
of ab¬
means
petition is eliminated.
The in¬
dustry thereupon becomes, in fact,
a national concern of a monopo¬
FRANCISO, SEATTLE
SAN
ANGELES,
TELEPHONES TO
;
by
sorption,
amalgation or
agreement, commonly
"rationalization,"
internal
7535
FRanklin
when,
dustries
La Salle Street
S.
231
Square
0650
1-2875
PHILADELPHIA,
4
Chicago
9
Oflice
Post
10
Street
WIRE
PRIVATE
Boston
5
York
Wall
67
Incorporated by Royal Charter 1727
and
why
they have been applied so fre¬
quently in the past to those indus¬
tries, such as coal, heavy iron and
steel, and the production of basic
cut-throat competition
ultimate bankruptcy. That is
avoid
The
control.
Huff, Geyer & Hecht
WHitehall
of
measure
STOCKS
BANK and INSURANCE
Royal Bank of Scotland
page)
(Continued from first
,
the
.
interests
of
all
parties." Also !oy
Conservative
as fol¬
ficulty of relating supply to de¬ lows: "Only a planned and corimand without
variations in price trolled
trade
and
industria
of a character and
violence which, policy can sustain a planned soci«
in
a
slow-producing
industry' system in a highly competiu.
a
cause
intolerable hardship to the
one
of
our
politicians.
leading
L.
S.
Amerv,
Number 4392
.Volume 161
THE COMMERCIAL & FINANCIAL CHRONICLE-
and progress upon which depends
in social re¬
be left to the chances
of unaided individual enterprise
in a "world of promiscuous inter¬
national competition."
future
all
progress
form cannot
To
the alternatives
us
economic
ternational
domination, retain
of flexibility,
collabora¬
certain
and
de¬
country
as
monopolies and cartels
are
concerned, the main dangers
to be guarded against are
(1) the
international economic
war.
We prefer the former. We
do not believe that the problem of restriction of output, (2) the sup¬
improve¬
international
cartels
can
be pression of technical
solved, in the modern world, by ments, and (3) monopoly profits,
tion,
or
the simple process of trust-bust¬
It is more complicated than
that. Nor do we believe that it is
ing.
practicable
either
desirable to
or
revert to the economic anarchy of
the nineteenth century.
We re¬
member the history of oil, steel
and railroads in the United States;
methods
the
and
which
men
Carnegie
and
by
Rockefeller,
like
Vanderbilt achieved
concentra¬
a
of production, with a
tion
conse¬
of efficiency and
increase
quent
dimunition of waste. When he
resulting in
reduction of demand
a
and excessive
savings. The meth¬
ods by which these
are,
first
and
can
be averted
foremost,
the
of publicity.
All trade
associations should be required to
deposit the details of their articles
they
in
this in turn
an
No firms
or associations should
be
permitted to enter any cartel ar¬
rangement with any firm or asso¬
ciation
operating
outside
of
means
no
than
more
which
public and responsible.
are
removal
tween
the
vate
of
instruments
monopolies which
and
to
prevent the
permanent
are
pri¬
Opens Atlanta Office
under¬
writing of private monopoly. Along
we believe
that, in the
words of Professor
Hansen, monop¬
these lines
C. B. Blakeman
olistic organizations and
corpora¬
tions can be made the servants of
ATLANTA, GA.—Hoit, Rose &
Troster,
New
York
investment
firm, has opened an office in the
a
well-functioning economic and
political
society,
and
masters.
The
solution
problem,
of
of
as
this
particular
or
completely planned economy,
but in
two,
a
in
in the past a
Co. and was
many
neither
a
Bank
he
with
accounted
was
swer
for
policy by the principal industrial
matter
lies
suit
an
in
the
conscious
countries.
Insofar
.
the
as
stability
is
ployment
for
pur¬
expansionist economic
achieved
incomes,
restrictive
at
the
policies
kind will be diminished.
an¬
are
men.
that by any
or
the States
or
all of the States, you
men as them down;
can't do it; they will be on
top all the time; you see if they
are not."
The process of indus¬
can
keep such
you
in
concentration
trial
the
heavy
industries was; in fact, an inevi¬
table development of free compet¬
itive
capitalism.
It would only
under similar condi¬
be repeated
So
tions.
why attempt to
This
them?
is
borne
restore
out
by the
comparative failure of the Sher¬
Anti-Trust
man
Act.
It
did
not
prevent the United States from
participating before the war in
the chemical, plastic, aluminum,
magnesium, and electric lamp car¬
tels.
And the story of the futile
WATER
MAIDj
0.^'t
efforts of the Department of Jus¬
tice to break the aluminum car¬
tel, by
over
a
series of lawsuits brought
of years, borders
period
a
the farcical.
on
The truth is that
the magnates who rationalized in¬
dustry succeeded not only in pil¬
ing up vast personal fortunes, but
in
solving the problem of
production. The problem that re¬
also
mains for
to solve is the prob¬
us
lem of distribution.
Making Rice
British Policy
In
Great Britain
attack
this
lines.
we
to
three
First,
by
policy
the
American Food
of
planned economic expansion, de¬
signed to achieve a high level
of
employment. Second, by
Louisiana, Arkansas, Texas and
a pur¬
and
over
secure that the
demand for
sities
is
mand
for luxuries is
by
a
designed
satisfied
de¬
system of social security
large
trial field
portion
will
of
left
be
the
rice consumption, and to develop America's rice
units
and
be sub¬
theme of
kind
quality
or
A.
complete
Government
an
owner¬
overcon-
eentration
of organized political
and economic
power, constitute by
»heir very nature
to
the
citizen.
freedom
The
a
of
direct
the
organized
in
1911,
possible
the
quality
of
each
consumer
making rice growing
more
of
units.
the
This
in¬
attractive
to
combining
development
of
The plan for
branded
identifying the quality of rice through
units has developed from a very
consumer
a
small beginning in 1928 to the placing by this Com¬
pany
of
10 lb. in
the policies of the Company have been
as
president and now as chairman
committee, with his son,
The central
Godchaux, Jr., as president.
his policy has been the improvement of the
of
rice
grown
in
Another
America's rice
advertisement
in
belts of
series
the
featuring Southern developments.
companies,
velopment
of
semi-autonomous
Public Corporation, through sta¬
ship, which, through
by
top
more
size,
than fifty million labels, from 12
on consumer
shelves during the
is
ready
to
do
its
In line with the rice industry
in response to the need
and
for freedom",
from 783,327
well
by
over
acreage
Equitable
acres
Securities
OXVILLE
ORLEANS
more
rice
program
as
"food
in this country has increased
in 1935-1936 to
1,500,000
development
for
a
this
proposed planting of
season,
•
Corporation
Equitable has helped to finance many Southern
in supplying others with capital funds.
part
NEW
EQUITABLE
YORK
MEMPHIS
HARTFORD
GREENSBORO
BIRMI NGHAM
NEW
to
1944-45.
NASHVILLE
ATLANTA
KN
oz.
season
largely influenced by one man, Frank A.
another, and those which are not;
The controls will take many dif¬
ferent forms, ranging from the de¬
of
dustry
of the board and executive
opolistic character
cer¬
than two million
located, into fewer and larger producing
Godchaux, first
Frank
In very
they take the form
was
making
or
which, owing to their
basic national importance or mon¬
tutory Industrial Boards, to
more
thirty-odd mills, many of which were small
guided
dustries
tain general
regulations.
few cases will
daily capacity of
For 34 years,
It will therefore
to
seven
international scope.
be
one
operates
single merchandising organization on a national and
necessary to fix a clear line
of demarcation between those in¬
are
a
and poorly
under any
private
hands,
subjected so far as possible to
the free play of competition. But
private enterprise can only flour¬
ish on the basis of confidence; and
the greatest enemy of confidence
jected to control of
Louisiana,
Abbeville,
Company
some
indus¬
Government,in
uncertainty.
sas—with
The
and
is
into branded
policy has had two objectives: to increase America's
in
the
farmers.
or¬
ganized by the State.
A
better varieties
milling plants—five in Louisiana and two in Arkan¬
pounds of milled rice.
Third,
met.
THE Louisiana State Rice Milling Company, Inc.,
millers, with headquar¬
neces¬
the
before
to
the
of
ters
the import of food
materials,
raw
California and
standardization
America's largest rice
poseful direction of trade, involv¬
ing control
Important
an
propose
problem; along
Securities Corporation
CHATTANOOGA
menace
individual
BROWNLEE
O. CURREY, president
great
advantage of
forms of ownership
and control is that
they avoid the
omnipotence of uncontrolled State
'amphibian"
322
UNION STREET, NASHVILLE 3,
TENN.
TWO WALL
major
fluctuations'of the trade cycle are
eliminated, and a high degree of
I don't believe
legislative enactment
anything else, through any of
shrewd
very
Bros.
compromise between the
the
monoply.
His
revealing: "They
Building
Jackson
was
Oil
Standard
Mgr.
partner in Dobbs &
giving evidence before a commit¬
tee of the New York Assembly in
1879, W. H. Vanderbilt was asked
how
Be
& Boesel.
involving
of
National
to
under the management of Chester
B. Blakeman.
Mr. Blakeman was
others,
completely free
so
lies
a
First
its
not
»
of
irresponsible, and those
Rose & Troster
Some revision of the
patent laws
would also seem to be called
for,
intermediate or^
ganizations of varying types. This
economic
exploitation over the of course is unpalatable to politi¬
many.
As
R. H.
Tawney has cians, who like their issues kept
pointed
out,
the
fundamental simple. Unfortunately, life is no
choice is not between private en¬ longer
simple; and never will be
terprise and socialism, but be¬ again.
The root of the whole
the
office, where
to public inspection.
are open
sanction
or
nopolistic world removes the free
choices of the few only, and that
weapon
of association
the
Department
of Commerce, or Congress.
Finally
the accounts of all monopolistic
concerns, including up-to-date in¬
formation on unit costs, should be
furnished to the appropriate Gov¬
ernment Department, which would
make an annual report to Parlia¬
ment.
The prospect of such con¬
trols has been generally accepted
by British industry, for it is now
widely recognized that monopoly
and control go hand in handthat public control over the mo¬
Offsetting Cartel Dangers
So far
without
the Board of Trade
preserve
constitutional
checks
and
balances which are essential in a
democratic society.
in¬
are
a
gree
the
2517
STREET, NEW YORK 5, N. Y.
full-em¬
necessity
of
any
-
THE COMMERCIAL &
2518
Thursday, June 7, 1945
FINANCIAL CHRONICLE
OUR
REPORTERS'
Chicago,
1
Rock Island
& Pacific
New
Ry
get
to market in
Treasury's current
issues
new
advance of the
pflugfelder, bampton & rust
staffs,
dealer
organizations were able to mar¬
ket a total of thirty-three bond
Railroad Securities
Preferred
issues with a
Atchison, Topeka & Santa Fe
MEMBERS
and other
leading Security and Commodity Exche
Exchange
Broadway, New York 5, N.
231
Van
So.
LaSalle St.,
Yt
Chicago 4, 111.
P$ Research Mgr.
for F. P. Ristine Co.
F. Henry Van
Ells has become
P. Ristine &
Company,
members
of
the New
York Stock Exchange, as
of the Research
Manager
Department in the
New York office,
15 Broad Street.
two and
Mr. Van Ells for the past
a
half
years
has been associated
Inc., investment
with Blair & Co.,
bankers, and prior to that was a
member of the staff of the
"Wail
the
from
one
this road was
of the most
reorganizations
dergone by a Class
ever
un¬
I railroad. To¬
day financial position of the road
is even stronger since during the
war
period virtually all of the
underlying divisional liens have
been
retired with funded
debt
$243.7 million as compared with
$334.5 million at the close of 1940.
Fixed charges in the same period
have been reduced from $13.3 mil¬
lion to about $9 million currently.
having
combination of these factors.
12 years, spe¬
Capitalization
for E. H. Rollins
a
stock
Class
on
as
earning power of the
well as that of most
railroads depends
I
largely
economic conditions during
the
and the gross rev¬
enues which the Class I railroads
are destined to obtain.
There are,
post-war
era
however, two particular develop¬
ments which are likely to result in
relatively greater
revenues
gross
of other Class I car¬
The first and most impor¬
those
than
riers.
the
is
tant
heaviest
for
fact
the
about beyond
severely cropped
complain
that
working forces offered something
of a handicap.
LOUIS, MO.—E. H. Rollins
this week
on
of
interests
much
given
even
quarters in Suite 005
of the Boatmen's Bank Building.
new
as
of New York Cen¬
May 1, next year, as pro¬
vided for under terms of the bond
tral by
extension
worked
plan
]\Tr. Giger is well known in St.
Lou's
financial
circles
formerly President of
and
was
his
own
fir:\ Giger & Co.
Before joining
E. H, Rollins & Sons, Inc., he was
Manager of Selected Investments
Company's St. Louis office.
No
brief
would
be
phasizing
of Atchison
complete without enir
complete
the
of
rehabilitation
physical
roadway
and
equipment.
Of the total gross
capital
improvements
recorded
probably two-thirds has been ex¬
pended during the war period and
amortized under
Certificates of
fax
Bartow Leeds Co. Is
Formed in New York
Except for sales
Formation of Bartow Leeds Co.
by a few insti¬
exempts
to deal in United States
tutions, and those for the purpose
of raising funds for the purchase
of the new Treasuries, there was
hardly
a
ripple in the
new
issue
market.
As
a
matter
of
fact
there
P. Morgan &
through J.
are
widespread indications that many
active traders, who seldom get
Corporation of
Four years
with the Discount
New York since 1931.
of
later he
was
elected Assistant Sec¬
retary-Assistant Treasurer and in
1938
Secretary,
elected
was
new
of
of
He is
partenrship.
per
operating
rev¬
$225 million operating
69.72%—post-war earn¬
were
ratio was
ings
when
1941
—in
enues
should attain levels of $15
share or more on the present
common
stock.
With
finances
strong the dividend might, in the
event that our forecast be real¬
cial
to
meeting
authorize
issue
amend
the
Mr.
Leeds started
with
career
Traders
of
a
July
new
150,000
par.
6,
and
certifi¬
at
a
the
of
yield
He
Treasurer
was
in
for
Bank
war
Assistant
Assistant
1943.
For the
in
past three years he was the
count
-Corporation's
trader.
shares, after costs, would
the company slightly more
as
emergency
head
on
request
Ward
will
be
Hasten V-J
EXPRESO AEREO
Day!
BUY WAR BONDS
SEABOARD ALL FLORIDA
6's
Adams & Peck
S3 Wall Street,
New York 5
BOwllng Green 9-8120
Boston+
Tele. NY 1-724
Philadelphia
Hartford
Dis¬
bond
•
Carroll
KEYES FIBRE
Class A and Common
Circular
the
and
purposes.
Railroad
-
and
1922
in
elected
'
West Point
business
later entered
1939
Vice-President
$100
.v.-
It is calculated that sale of the
new
years
his
Importers
National
two
tion.
to
preferred stock
shares
graduate
employ of the Discount Corpora¬
spe¬
next
a
Phillips Exeter Academy, Class
1927, and Williams College,
Class of 1931.
The company will ask share¬
of incorporation,
re¬
signing last month to form the
Plans New Preferred
cate
associated
Mr. Bartow has been
ordinary
holders
Co. In¬
corporated.
far away from their desks in the
course
Govern¬
and State and
municipal bonds, is announced by
Francis D. Bartow, Jr. and Donald
D. Leeds. The new firm will clear
securities,
ment
Manager
facilities
than the amount needed to retire of the Municipal Department. Mr.
In this connec¬ ized, be increased to $8 per share. the outstanding stock.
Ward was formerly a partner in
tion it might be pointed out that Atchison is one of the outstanding
F. P. Long & Co. and Hoit, Rose
Delaware & Hudson
Atchison was the first carrier to conservative investment rail equi¬
&
Troster.
Offices
of
Bartow
Dieselize a complete division, 61
ties and offers an exceptionally
With stockholders voting
today
of the 5400 h.p. freight engines
on
the projected merger of Al¬ ) Leeds Co. will be at 57 Williani
high yield in the current market—
being installed in the Winslow
bany & Susquehanna R.R. now Street, New York.
Division operating over the moun¬ 6.3% at current level of 95.
Necessity
Atlanta &
summary
of be¬
tween $275 and $300 million. As¬
suming an operating ratio of 70%
in
out
1943.
all hands turned to
the War Loan.
handicap of
should have gross revenues
an
arranged as to relieve the
obligation to dispose
so
of its holdings
capital
track mile.
sub¬
such
gossiping
clients for the Seventh War Loan.
$35,731 per equated
re¬
expected, would
it is
.
fices to
for
making
from
interest savings,
stantial
not
were
to
In
the
the job of
consideration
Corporate Front Quiet
Investment
ies
under
is expected
will take up
financing its funded debt.
D & H of its
standing as of December 31, 1936.
During the same period gross
labor
for
be
to
it
Hudson,
that the latter soon
Panhandle Eastern Pipe Line
expenditures of this sys¬ an AAA with its economy of
tem have amounted to $253.3 mil¬
scarcity which policy was so dam¬ Co.'s announcement of plans to
&
ji'ons, Inc., announce the ap- lion, equivalent to $14,686 per aging to carriers operating west retire its $14,387,220 of 5.6% pre¬
poi tment of Harold H. Giger as
ferred stock brought another pro¬
equated track mile and $616.3 of the Mississippi.
Manager of their St. Louis office. million for maintenance of track
Assuming gross national income spective issue into sight for July
The firm has also moved its of¬
and
equipment,
equivalent to post-war of $125 billion Atchison marketing.
;.
I T.
&
aware
lease, into Del¬
under
operated
ing prices of upwards of $275,000,000/ All in all the bankers had
this and other territory
not
Telephone REctor 2-7340
ninety operation,
This is equiv¬
alent to 22.2% of funded debt out¬
for a ser¬
of years following the war,
other words, this carrier will
Broadway, New York
120
stock issues with a value at offer¬
little
Stock Exchange
Members New York
Aside
offerings
bond
to
the industry handled some
now
combined.
SUTRO BROS. & CO.
1936.
addition
In
comparable
any
since
period
industrial
sizable
of upwards of
making
it
the
events, are
pulling away early these days and
getting around to see prospective
million
Giger St. Louis Mgr.
almost
new
value
a
billions,
1.7
Post-war
Atchison
consists of growth of the Pacific Coast area
cializing in railroads.
He is a $151.9 million of General Mort¬ which it serves. .Whereas the
graduate of Georgetown Univer¬ gage 4s and $51.2 million of Ad¬ Pacific Coast area was formerly
sity and the Graduate School of justment Mortgage 4s, both non- primarily agricultural the war
Business Administration, Harvard callable, and $7.5 million Conver¬ has transformed it into an impor¬
tible Debenture 4s due 1955, call¬ tant industrial area and a sub¬
Universitv.
able at 110.
Since financial posi¬ stantial portion of that industrial¬
if. P. Ristine & Company, or¬
tion is very strong with net cur-, ization is likely to carry over into
ganized 33 years ago, have been
rent assets $49 million as of Feb.
Almost as important
peacetime.
members of the New York Stock
28, 1945, it seems reasonable to for an agricultural carrier such
Exchange for the pest 30 years
as
the
Atchison
are
favorable
anticipate retirement of this issue
under the same firm name. In ad¬
some time this year.
agricultural prospects.
Whereas
dition to New York, offices are
Summarizing the financial im¬ prior to the war there was a sur¬
maintained in Philadelphia and
provement of this carrier in the plus of agricultural produce, there
Elizabeth, Westfield and Ridgepast 8 years, working capital has will doubtless be a substantial de¬
wood, New Jersey,
increased $2.9 million and funded mand for all of the agricultural
debt reduced $66.0 million or $68.9 produce which can be grown in
Street Journal" for
of
value, at offering
a
30s
financial position of
inherited
F.
with
with
issues
charges around $22
drastic
associated
and
number
similar
prices, of around $120 millions.
averaged $150 million and net available for
Meanwhile a formidable array
million, gross revenues have risen to well over
secondary
offerings
were
$500 million in 1944 and net available for charges during the past of
three years has averaged $70 million with peak earnings of $85.5 brought to market and distribu¬
million in 1942.
^
" tion completed. Operations set a
tains between Arizona and Cali¬
Even before the war Atchison's
thirteen-year record for the month
fornia.
Centralized traffic control
even though the business handled
financial position was considered
has been installed in large seg¬
was
substantially less than in
virtually impregnable, the Gen¬
ments
of
this road with more
eral 4s being the bellwether of
April.
the bond market.
At no time in promised during the balance of
For the five months to May
the war period and the early post¬
the 30s, with the exception of one
31, bankers brought to market
war
period.
Sizable
operating
year, were fixed charges covered
more than 110 new bond issues
less than
IV2 times. The strong savings should result from the
in
revenues
Ernst&Co.
value of more than
millions,
$300
compared with the major transcontinental western carriers,
Atchison has been the war's greatest beneficiary.
Whereas gross
U
120
despite depleted
and their
underwriters
As
Stock
best shown by the
job is
fact that,
(When Issued)
York
accomplished a
bankers
That
real
Pacific R. R.
New
Drive.
War Loan
|; St. Paul
!
back in an effort
industry bent its
to
war loan
underwriting
the
that
the
mighty seventh
recapitulation of new finan¬
cing carried through during May
and the first five months this year
(When Issued)
Common &
in
A
Securities
Cliic., Milwaukee
join the fight
REPORT
/tft War Loan Bonds
Buy
indicates
;
Let your dollars
1. h. rothchild & co.
National Association
Securities Dealers, Inc.
'35
Mclaughlin, baird & reuss
52
wall
Member of
of
Members New York Stock
Exchange
specialists in rails
HAnover
street
2-9072
n. y. c.
5
tele. NY 1-1293
ONE WALL STREET
TEL.
HANOVER
2-1355
NEW YORK
TELETYPE
NY
5
1-2155
Number 4392
161
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Financing Small Business Joint
[ Work of Government and Banks
(Continued from
small business loans
the risk involved
is
spread amongst a group instead of
concentrated in one bank.
I do not believe that any one
making
in
because
the financial prob¬
cure
group can
Condemns Refusal of South American
Countries to
where banks do not find it
possi¬
ble to supply the needed credit.
RFC has also announced that in
order to be of practical assistance
to
industry in war production and
at the same time assure manufac¬
Subsidy Bill Passed,
Pay External Obligations Returned
Says in Many Countries, Especially Brazil,
Business Is Booming
2502)
page
2519
Editor, Commercial and Financial Chronicle:
The writer, sole proprietor of the firm of Sloan & Wilcox, recehtly returned from a two months tour of South America, traveling
by air down the West Coast of Santiago, Chile, then to Buenos Aires
up the East Coast, visiting all countries except Paraguay and
and
Venezuela.
turers of contract termination
to Senate
The subsidy program for
meat,
butter, flour petroleum and saategic metals, which would nave
expired June 30, is to be extended
for
an
islation
and
additional year under leg¬
which the House pa>sed
returned
to
the
Senat2,
ac¬
cording to an Associated Pi ess
dispatch from Washington, May
and
23.
business. It needs
The firm has been active in the«>
reconversion
assistance, it was
the considered efforts of the Gov¬
distribution
of
South
American. various
The amounts authorized were:
South
American
coun¬
ready to supplement its present
ernment and private organiza¬
type of business loan by making bonds. The purpose of my trip was tries, they have asked as much as Meat, $595 million, an incr.ase
tions working in close harmony.
to obtain first hand information a 50% reduction in the
loans
principal of $35 million over the figure opsufficiently flexible to pro¬
With this thought in mind RFC is
regarding business conditions in amount plus a heavy interest re¬ proved by the Senate; butter, $100
vide working
capital not only for
endeavoring to support the banks war
the various countries. In visiting duction.
After seeing the busi¬ million; flour, $190 million; pnrocontracts and subcontracts,
of the country in a program of
but also for civilian orders and at the stock exchanges in the dif¬ ness conditions in many of these leum and petroleum products, ^290
sound long-term credit, particu¬ the
ferent countries, I noted that in countries,
especially
in
Brazil million; copper, lead and zinc, $88
same time to include in
such
larly to small business on terms
miscellaneous
strategic
commitments contract termination many cases their internal bonds where business is booming, it is million;
as favorable as those
enjoyed by interim
were paying full interest and sell¬
rather difficult to convince one's materials, $100 million; materials
financing.
In
addition
and
big business.
The Directors of RFC also announced
commodities
self
as to why these plans should
produced out¬
that loans ing at prices close to par, while
side the United States, $80 mil¬
RFC realize that long-term credit and
the external bonds were paying be accepted.
guarantees under the Contract
must be extended to deserving
lion;
but
a minor
and
rubber
and
rubber prod¬
portion of their in¬
The American bond holder who
Settlement Act of 1944 would be
ucts produced outside the United
small
enterprises that possibly made.
terest and in some cases none at invested his
money in good faith
heretofore have been unable to
all. In the plans that have been in
South
American
securities States, $60 million.
Because of the
magnitude of
obtain such credit, so for months
The entire program is handled
proposed to holders of bonds of should not be asked to take such
RFC's
operation, many believe
past they have been endeavoring
by
the1 Reconstruction
Finance
a substantial reduction on his in¬
m
that the Corporation deals
pri¬
to find a basis upon which to as¬
Corp. and its subsidiaries. ; ;
vestments.
marily
in
large
loans, that it helps bank participation is prepared to
sure
industry, particularly small
DONALD C. SLOAN
The House struck from the bill
HIindustry, of the availability of only big business. The record of exercise its powers and use its
RFC clearly indicates the con¬ facilities whenever and wherever Portland, Oregon
a
Senate requirement that pre¬
sufficient long-term credit to con¬
May 26, 1945.
trary to be the fact.
It is the needed to:
miums on copper, lead and zinc
vert effectively to peacetime pro¬
Mduction and to assist in the post¬ small businesses which have been (1) Make, loans against termi¬
may not be cancelled during the
most often assisted.
What RFC
war
economy.
However, RFC
nated contracts and subcon¬ Richard W. Wagner With
life of the legislation.
is doing and is
prepared
to
do
wanted this credit to be made
tracts for the purpose of mak¬
It added a new sectibh re¬
for small businesses is not
Coburn
&
Middlebrook
gener¬
available to business if- possible
ing funds available for other
ally known. Over 20,000 loans of
Richard W. Wagner has become lieving slaughterers of liability for-*
war production;
through the usual, credit sources.
$100,000 or under have been au¬
(2) Make loans for civilian pro¬ associated with Coburn & Middle- the refund of subsidies to which
During the period following the thorized
of small
lems
t-
-
termination of the war, private
initiative and free enterprise wiF
required to absorb the shock o
returning to peacetime economy
Small
business, I believe, wit
be
play a major part in this economy.
RFC will do all in its power to
augment
to
and
preserve
the
of
small businesses
throughout the country.
thousands
whether any one
doubt
I
g
is in
amount
position to state what
will be needed in the
transition period by either small
Or large business.
The Directors
of RFC, from past experience, be¬
credit
of
be an un¬
precedented volume of applica¬
tions
for business loans during
and subsequent to the period of
lieve that there may
early peace¬
reconversion and for
production.
time
It
Blanket
RFC's
-
responsibility for
pro¬
viding
financial
assistance
to
small business in the
post-war pe¬
riod will possibly be
With its broad pow¬
and flexible
is in
organization, RFC
position to adopt
a
grams to meet
new pro¬
conditions and
problems with which
industry and
new
this
It
program
overall automatic agree¬
to make loans not
exceed $250,000 to a borrower,
an
to
other purposes;
(3) Finance plant and equipment
reconversion, to finance new
and
equipment
plant
pur¬
veterans
own
and
to
loan
perform
tration may request under the
Servicemen's
Readjustment
to
an
applicant*
(5) Make
future loans
is
may
large borrowers and it
during the administrative pe¬
Rn'pfiv
y,
RFC
with
so
proceed
rehabilitation
now
and
reconver¬
banks
to
it is
my
opin¬
can
solve
financial
the
problems
of small businesses which
pable
of and
entitled
to
are
collateral,
by the bor¬
requirement of
the RFC Act).
In other words
the entire responsibility, with re¬
spect to approving and servicing
these business loans, rests with
banks.
With this agreement you
rower
can
paid
salaries
to
as
which is
see
that
a
we
show our com¬
plete confidence in banks, which
is as it should be.
This program
ought to be attractive to
all banks.
agreement is to
permit banks to make loans in
excess of their loan limit and to
The effect of the
take
more
risk than they
would
solution
i war
during
tne r
Deriod's
This
new
RFC program
means
of assuring
should
business
is available,
through banks, for peacetime pro¬
duction. And it is hoped that it
will also encourage private bank¬
ing to assist in creating and de¬
veloping new commercial and in¬
dustrial enterprise after the war.
that long-term credit
principal results of
Participation Agree¬
ment, in our opinion, will be to
•
One
REQUEST FOR BIDS
THE PITTSBURGH & WEST VIRGINIA RAILWAY COM¬
PANY
(hereinafter called the "Company") hereby offers to
sell, and requests bids for the purchase of 59.400 shares in a
single block of the common stock of THE WHEELING AND
LAKE ERIE RAILWAY COMPANY, owned
A circular letter containing the terms and
by the Company.
conditions of the
Company's offer, as well as a form of proposal for use of
prospective bidders, and a form of acceptance (all of which,
when executed and delivered, will constitute the Company's
Contract No. 1945-1) are on file and may be inspected by
any
interested party at the office of the undersigned, No. 405
Wabash
Building, Pittsburgh, Pennsylvania.
encourage maximum
purchase of said stock must be submitted to
the undersigned at his aforesaid office on or before twelve
o'clock noon on June 13, 1945, and bids received after that
time will not be considered.
Bids will be opened by the
undersigned at his aforesaid office at 2:00 o'clock P.M. on
June 13, 1945.
must be
Bids
to
business
enterprises
■
'
•
j
dated
2,
January
1924, of Reading
Company to Central
of New York (now Central Hanover *
Company), Trustee, and the provisions of '•
above mentioned Bonds secured by said Mortgage and
Union Trust Company
of
Trust, that
aforesaid;
letter
can
from the
undersigned/
information
there will become and
to
so
and
Bank
each of said
be redeemed, at the
Trust
Company,
70
Bonds must be accompanied by all coupons
appertaining, maturing on and after July 1, 1945,;
registered form, or in coupon form regis¬
tered as to principal, must be accompanied by properly
executed instruments of assignment and transfer in blank.
Coupon
thereto
Bonds
in fully
est
coupons
certificates covering July 1, 1945, inter-,
should accompany the Bonds when
presented
for payment.
Interest
cease
on
all Bonds hereby
coupons
called for redemption will
1945, and any interest
maturing after said redemption date which apper¬
in coupon form shall be void.
from and after July 1,
to accrue
tain to said Bonds
READING COMPANY
By R. W. BROWN, President.
May 2, 1945,
Any interested person desiring other
The Company reserves
,
PREPAYMENT PRIVILEGE
v ' '
.
the right to reject any and all bids.
.
Holders
* ;v.
and registered owners
if-
'
of the above mentioned
Reading Company General and Refunding Mortgage Four
Per Cent. Gold Bonds of Series A and Series
and One-Half
Dated May 28, 1945.
/:
,
CHARLES J. GRAHAM, President,
The Pittsburgh &
West Virginia
Railway Company
Wabash Building,
405
■
be due and payable upon
office of Central Hanover
Broadway, New York 15, 1
N. Y., one hundred five per cent. (105%) of the principal r
amount
thereof, together with accrued interest to July
1, 1945, and said Bonds are required to be then presented at
said office for payment and redemption.
Bonds
regarding this matter may obtain the same by
applying to the undersigned.
•
Reading Company has elected to re-*>
deem, and will pay and redeem on July 1, 1945, all of its
General and Refunding Mortgage Four and One-Half Per
Cent. Gold Bonds of Series A and Series B, and on said date
copies of said proposal forms and circular
be obtained by any interested person on request
letter
In addition to the Blanket Par¬
rectly
January 1, 1997
.
prepared and submitted on forms of pro¬
posals prepared by the undersigned, and must comply with
the terms and conditions stated in the Company's circular
employment.
ticipation Agr^ment just men¬
tioned, RFC will continue its pro¬
gram of making secured loans di¬
•
GIVEN, pursuant to the provi- >'
sions of Article Four of the Mortgage and Deed of Trust
Proper ownership
Bids for the
of the
this Blanket
.
NOTICE IS HEREBY
Deed
ordinarily take.
be the
ca¬
1997
Mortgage Four and One-Half
Gold Bonds, Series B, due
•
the
thereunder,
few conditions
and sala¬
ries),
according
to their own
judgment and without requiring
initial approval by RFC (except
(solvency,
Per Cent.
Mortgage Four and One-Half
Bonds, Series A, due January 1,
General and Refunding
In summarizing,
COMPANY
Bank and Trust
make loans
subject only to a
General and Refunding
Per Cent. Gold
ion that together banks and RFC
permits
agreement
This
recip¬
V:'
for
sion.
RFC
risk.
zation determines that the
Registered Owners of
READING
that industry
to a ten-year period, with
insuring up to 75% of the
up
provided
ient acted in good faith.
To the Holders and
with plans for
during the reconversion and post-
without
or
not entitled,
NOTICE OF REDEMPTION
others
as
commitments
small and
been most valuable to them
well
as
Business Loan,Program; and
are
riod of a loan that an
advisory
service, if requested, is available
that
may
often prevent recur¬
of
were
which the Veterans Adminis¬
After
made every talent of the
Corporation is available to both
the past was an
officer
Wagner & Workmaster.
present
Corporation's staff renders valua¬
aid
in
they
the Director of Economic Stabili¬
program,
its
functions
loans
with J. Arthur Warner & Co. and
chases and to finance surplus
not only
during the pe¬
riod of loan consideration that the
ble
brook, 1 Wall Street, New York
City. Mr. Wagner was formerly
property and surplus equip¬
ment purchases;
(4) Make business loans to re¬
turning
veterans under its
is
authorized. Under that such services and cooperation
a bank may enter during the life of the loan have
ment with RFC,
and
business may be faced.
Agreement was
into
duction, and for reconversion
greater than
before.
ever
ers
F;/;;:-'
that rence of unfavorable experiences.
Participation Many borrowers have advised us
premise
this
on
was
by it to small business.
And the Directors of RFC
realize
that their
Pittsburgh, Penna.
1, 1945, may at any time
payment of the redemp¬
price of said Bonds, together with interest accrued to
1, 1945, upon surrender of their Bonds in the above
B, called for redemption on July
and after May 2, 1945, obtain
on
tion
July
manner.
i
j
2520
Thursday, June 7, 1945
CHRONICLE
FINANCIAL
COMMERCIAL &
THE
Uiges Overhauling of Securities Act
As Aid to Post-War Business and Employment
F. Ebeistadt
States
United
Securities
Government
that
have yet
we
country, we will
..;T
Primary Market Serving
Corporations
heretofore reached.
Otherwise government will have
anything
Banks
•
investment beyond
of private
ume
A
achieved in this
also need a vol¬
funds at
furnish the necessary
to
the cost of the taxpayers.
'.i!i
Institutional and other Investors
efficiency
crease
ion, to justify a thorough examin
ation by your Committee of
these
uses, to in¬
through new
peacetime
to
war
page)
(Continued from first
1.
Oil;-- J
.;
Ihn.
HO
i
funds
to purchase sur¬
necessary
plus government owed war plants
and equipment, with resulting re¬
Bankers Trust Company
STREET, NEW YORK ;\
16 WALL
which
and
governmental def¬
considerable benefit of
By JOHN
Governments
"f't
recommendations are being made to these institutions that they continue to confine their commitments in the
long-term taxable obligations to the 2%s due 1967/72. . . .
''
opinion of astute followers
will eventually reach
it is still the
market that this issue
and 107.
.
.
of the government bond
levels of between 106y2
ON MARCH
KESTRICTEDS
evidence for the restricted issues with
the 2y4s due 1956/59 again moving into new all-time high ground.
It was reported that the savings banks were still letting out
the shorter maturities of the 2s with the proceeds being invested
largely in the restricted 2Y4s
The insurance companies were reported to be buyers of the
restricted 2'As and 21,4s with the funds obtained from the sale of
municipals and partially tax-exempt Government bonds. , . .
A
.
.
good demand was in
,
.
SWITCHING
'
'
.'■
.!/
y/..
'
'
.
rearrangement
and. portfolio
switching
Considerable
! |
;
is going
and
with indications that there is selling of the 2s due 1949/51
2s due 1950/52 because of their vulnerability to the new
on,
the
114s.
year
.
.
securities are
1951/53, the 2s due 1952/54 and the
reported
were
out of the 214s due
^
Jn Government, security purchases is still toward the
longer maturities with the larger income.
order
In
shorter
.
1
maturities
or
have
fits of the ideas of the large bank portfolio managers, a list of the
issues that these experts consider attractive at this time, has been
made available to the out-of-town banks. ...
The securities favored in the
#
due
2s
intermediate maturities, are the
the 2s due
and
1951/53,
term issue advised is the 214s
1952/54.
of 1967/72.
.
.
.
of
sale
...
1956/58 with the funds to be
the 214s of
and
of this private
can
in the
expect
16
billions
registration
1933.
the 10
years
pany
Act
Acts
affect
from
these
of
investment.
on
the books
obtained
suggest that the penal¬
contrary/I
or
CAUTIOUS
I
do, however, question the wis¬
of handicapping our post¬
by retaining un¬
burdens of time, work
expense upon the great ma¬
jority. of business people, large
and small, who approach the pri¬
vate
investment. capital
market
with
no
sinister
purpose
but
recovery
solely in response to their under¬
ambition to start
standable
The absence of selling by
insurance companies in the 2I2S, who
bonds, because of the fear that if they
reluctant to let out these
are
families, their workers, and their
customers.
the
!.
/■
r•
-
-
have
You
importance of foreign loans.
a long story but I hazard
guess/that
no -• substantial
This is
Our
firm'was
accept this legislation
to
good
and
grace
these
Acts
act under
to
running
business.
experience
The
these
over
results
years
of
are
The
vate
investment markets in
rela¬
tion to post-war business and
ployment, is such
as,
in
my
companies,
bers
em¬
opin¬
wide
a
of
mostly
do, they will get no more of
better on these obligations.
.
under much pressure
the
.
them, has kept the market steady to
.'-j.
bonds will be
unless there is selling by the largest holders
It is not expected
of
that prices of the restricted
bonds, the insurance companies.
.
.
.
y.v
VC'.v/y:
'
V
excellent.
been
have
time
no
had
we
pointed out that the "tax free yield"
A further increase in the
floating supply of the partially exempt
It is reported that ihe insurance companies
will continue to let out these bonds, with the proceeds being rein¬
vested in the outstanding restricted issues or the drive obligations.
.
.
,
is indicated.;;
This will
be
the
.
free
yield"
as
extent of the ."normal portfolio
do the taxable issues.
taxable issues.
are
i
,
considered
Based
011
.
.
the
adjustments"
.
.
.
of
time
the
this
obligation
is'
still
in
taxable, the 2V2s due 1967/72
"tax
free"
2
2%?
partially exmnfobL^nn
tTxab?e bond
1967/72, and this should entitle the
sell
on
a
lower "tax free yield"
to
complaint
that in
suspicion that
with the
Thq last four maturities of the partially exempts
most attractive obligations in this group.'
that fact institutions that needed
tax shelter came
remove
have
even
any
slightest griev¬
the
There is considerable talk to the effect that the
Treasury
the
restrictions, m the next
commercial
Ire in'a
ptete
banks
port
control
can
buy
year
two,
or
them.
.
.
.
on
Some
the 2i/,s
so
mav
that
tradersil
lift
the
derive
any
the
from
bearing resentment, we
contrary
grateful for
term
securities to
direct
theMmmircUl'1tanks "n finincfn "X
rak zstzxzsr*' P
■ •
restrictions of the 2*4% bonds.
.
.
.
are
criticizing
I ain
suggesting that the rules of the
game as they now exist and are
administered offer a threat to ob¬
tended to
I
us.
the
taining
not
am
the attitude of the
umpire.
volume
of
business
dently desire.
6 ehange ,n the
not be possi¬
tremendous vol¬
I fear that it will
to
clear
the
ume
of private
will
be
investment whicn
necessary
volume of
want, through the
now
that
exist.
I
support tn
which w
statutes and i
to
employment
ministrative
short
Far
helpful accom¬
they have ex¬
many
which
modations
ble
money
n0t
is true.
actly
and
to'do"so"""'8
tion
ThlVresWcted '|SSUes by those ™h°
the
marketeXd' wa/tf t^finTnce^the
over
Commission. Ex¬
toward the
employment which, next to
military victory, seems to be the
thing'that our people most ar¬
thanrthe longer
This resulted in some selling
partially exempts to bring them in line
period
a
was
yield of the nartiallv
exempt .and the taxable issue tend to equalize.
This wo.iM
higher prices for the 2%s due 1960/65. Also the
due m0/65
has a maturity advantage of seven years over the tavahio w. a„o
.
.
by these institutions during the Seventh War Loan. ... Certain of
the intermediate maturities of these bonds do not give as large a "tax
of the middle term
on
of that available in the longest
Over
It
cause
have they ever directed
of any sort at us.
I say
we
WISHFUL THINKING?
PARTIAL EXEMPTS
issues
maturities of the partially exempts
and its
At
to
complain about their attitude nor,
I am happy to be able to state,
have
order to
YIELD
moderate
Commission
the
of
staff
importance of active pri¬
for
into many
variety of
size. Our relations with the mem¬
by
The 2%s due 1960/65 is the bond considered the
most attractive
.
of the very
one
in
it.
During the 12 years since 1933,
we ; have
handled
issues under
first
ance
excess
attention to
invited
...
.
to
or
expand legitimate enterprises for
the benefit of themselves, their
and
into the market the early part of the week, and pushed the
prices
these four issues up three to four-thirty seconds.
■
in¬
millions
the
on
"FREE"
even
dom
war
.
LARGER
lightened,
no objec¬
see
maintaining
to
SEC, by
the investment banking fraternitv
by
available to your Committee.
from
plants
All
12
been
unquestionably be a
strong
demand
for
investment
funds to reduce costs through re¬
convert
1940.
private
the shortest for
Thus considerable
experience in their operation has
1944, inclusive. I question
the ability of the present mechan¬
ism to carry this burden.
to
of
years,
about 5 years.
1935 to
funding,
the
the
for
they will ap¬
proximately
equal
the
total
amount of the registrations with
the SEC during
sta¬
our
now on
The oldest has been
SEC during the
annum,
per
their
books, the major portion of
amount of private foreign loans is
private investment is subject to
the provisions of the Securities likely to pass' through the fine
mesh of the filter of present laws
Act of 1933, as amended. This is
and regulations. Our own people
one of the four principal statutes
may have to continue to follow
administered
by the Securities
the present complicated and in¬
and
Exchange Commission, the
tricate procedures in order to get
other three being the Securities
Exchange Act of 1934, the Public private capital, but the foreign
borrower will prefer the simpler
Utility Holding Company Act of
1935, and the Investment Com¬ procedures of the London market,
the SEC
was
billions in the
1936. If the issues to be reg¬
the
On
tion
...;
tute
registered
with
slightly under 4
with
capital to business
Under the laws
be¬
largest amount of new issues
year
it, the union of these two
not. come. about in the de¬
measure
if there remain
serious obstacles to the transfer
sired
enterprises.
Securities Act of
the
use
will
A large part of such
annum.
per
for productive private in¬
In the 25 years that
have been connected with this
There will
The only long-
invested
in the 214s due 1967/72 is still being advised by most of the port¬
folio managers.
It is indicated that individuals are selling a
few of their restricted 214s to use the funds to buy the 2V4s and
214s being offered in the drive.The profit is available to hold¬
ers of the old outstanding restricted issues and individuals are taking
them down at these levels, .'.A:'/../V.:
The
years,
we
of around
private hands
funds in
business, I have never seen any¬
There
160 / billions
of
product
post-war
flotations
existence
the
of
thing like it/ not even in 1929.
However, in spite of the tre¬
mendous amount of capital which
is available and the great need
and desire of business to obtain
are
we
lions
moving out of the
funds to invest, may get the bene¬
new
I
national product that year,
to have a gross national
gross
if
to
ties for malfeasance be
and
in 1929 and the
flotations
ad¬
ex¬
'',///•''"'/v
Nor do I
necessary
post-war years amount to 16 bil¬
/
.
,
bil¬
relationship
the
Adopting
tween
their
light of
not
ment.
eager
of employment.
degree
istered
institutions which contemplate
that
and
of
volume
between
and
the
in
looking
vestment.
coincidence
investment
than a mere
more
The
3 ,.r.
WHAT THEY LIKE
is
at
there is no
of tre¬
the other hand,
mendous
of this, of course,
registered with the
SEC. The average amount of flo¬
tations for the years 1934 to 1944,
inclusive, was 2.2 billions.
of
art
On
be
to
Acts
these
review
ministration
requires the efficient creasing
their
severity
where
large amounts of capital— fraud
or
other
malfeasance is
in which Americans excel. clearly
present.
doubt
all
Not
1936.
business, they must
good
constantly improved product
28
The largest
amount
of
corporate flotations
since 1933, when the SEC was es¬
tablished, was $4,600,000,000 in
needed
not the
are
alternatives. The construc¬
tive course, it seems to me, is to
only
perience,
use
annum.
per
the former/ But those
elimination but to their improve¬
an
for 10 years
preceding amounted to over 5
lions
under
1952/54,
1952/55, and the 214s due 1956/58, into the 214s due
the 214s due
trend
quirements may run as high as
or
This process
need substantial
flotations will require
:.A
.
,
Other exchanges
The
5Vz
The proceeds from the sale of these
.
being put to work in the 2s due
214s due 1967/72,..
1967/72.
opinion,
repeal in toto I
they would prefer
are
that
believe
generally
decreasing prices to the consumer.
business will not
additional funds.
A more recent report of the 20th
Century Fund indicates that re¬
their
they
as
•
have sus¬
a
to
lars and the average
-
.
portion
obstruct
unnecessarily
realize that if we are to
good wages, must constantly
reduce their costs and must sell
Exchange Commis¬
indicate that, in
and
seems
policies are good
pay
In 1929
the total of corporate flotations
amounted to over 10 billion dol¬
Accordingly,
r
constructive
eliminating? that
is
1
portion
business. / Industrialists
tained
of the Se¬
billion dollars per annum.
banks.
mercial
sion
enlighteed
that
realization
social and labor
of
is consider¬
authorities
curities
sharp demand
for the taxable 2%'S due 1967/72. . . . The belated recognition of
the appreciation possibilities in this bond carried market prices of
this issue to new ajll-time high levels. ... Despite the advance that
has'already taken! place in this obligation,-it is still the highest
yielding long-term taxable issue that can be bought by the com¬
eager
fuller
A recent release
able.
government bond market is the
The feature of the
than ever to go ahead,
with greater tech¬
knowledge but also with a
more
nical
amongst
JR.
T. CHIPPENDALE,
Business men are now
icit to the
high the total volume
that
depression and the years
the
followed.
post-war investment will be is a
matter of opinion. The differences
n
!
to
which
th*
with
that
and
cumbersome,
expensive.
armed not only
How
"Our Reporter on
keeping
sound
is
tive,
duction of our
the taxpayers.
.0
to
view
rule,
bv
dilatory, and
stimulating
There is
already considerable
business evidence of a strong and growing
and employment, an active pri¬ demand for such funds on the f I would like to make it verv
vate investment market can make
part of business, large and small. clear that I am not suggesting the
a further very substantial contri¬
Its oustanding performance during repeal of all or any of these Acts
bution to our national economy the war, has restored the confi¬ In my opinion if the investment
of
American
business, banking fraternity were faced
through furnishing from private dence
sources,
a
large amount of the which was badly shaken during with the alternative of the Acts
'
r ■
.-;>/<
practices
regulations adopted
SEC
pursuant
thereto
'
its
to
addition
In
,! l'
*
the
and
contribution to post-war
\ 1
and
statutes
and installa¬
tions; to start new. businesses and
to expand
present ones—to say
nothing of the demand for funds
from abroad, the importance and
probable magnitude of which has
been referred to in your reports.
equipment,
plants,
have
It
procedures
wnic
is for that reasoi ,
taken
the
liberty
suggesting to this Committee tn
you examine thoroughly not on
the four Acts themselves, but t
'Number 4392
Volume 161
THE COMMERCIAL & FINANCIAL CHRONICLE
rules,
authorities.
forms
competent and reasonable. That's
regulations, procedures, and
through which these Acts
being administered.
are
here is
questions the import¬
ance of full disclosure of material
facts and adequate protection to
No
the
not
one
We have found them
point.
just
The point
one
is that
obstacle.
more
I have wondered why, instead
of
concurrent
jurisdiction,
the
SEC and
the
Blue Sky
author¬
,>
have
in
spent long days and weeks
conference in
cessful effort to
not
a
very
TVA
suc¬
the de¬
sirability of certain amendments
of
rather
see
agree on
limited
hope
investment of $357,000,000 in the
of
these lines. Never, so far as I
know, since this legislation was
passed, has the whole field been
no
ienai
fiscal
year.
salient
information.
They
I
concerned, that the
unduly restrictive, in¬
volved, and unclear, that pro¬
cedures thereunder are unneces¬
sarily expensive, dilatory, and re¬
dundant, and that without sacri¬
ficing in any respect—I might say
even
strengthening — the basic
big business, all this red
tape is chiefly a nuisance and ex¬
of these Acts, their lan¬
and administration can be
greatly simplified.
to.
is
1933
think,
do not
register
expenses
after
costs to the companies have
between $20,000 and
$50,000 per issue.
These are not
large but moderate sized issues.
Simplification of the registration
procedures would not, of course,
eliminate all expenses but it could
reduce
them
substantially.
It
has not proven possible to com¬
from
been
and
only
investment
or
post-war
such
at
2%
on
(the
less
themselves
in
not
Such activities
charged directly and sole¬
the electric consumers
areas
where the govern¬
provides
no
such
services.
more
host
the
you
conclude
-In
your
on
contrast,
you
own
a
de¬
also
I
copies
.few
of
margin
amounting
to
nearly 22% of gross revenues. In
comparison, federal taxes of util¬
ity companies in 1944, according
to
the
Edison
Electric
amounted
to
15.8%
revenues,
of
which
or
more
than 7% of operating rev¬
own
SEC
regulations, bul¬
and releases, none
distinguished
for
brevity, clarity or simplicity and
all of which to a greater or less
degree affect private investment.
In
aggregate they constitute a
formidable
monument
equalled,
so far as I know, only by the rules,
regulations and forms of our in¬
of
mass
forms
letins,
which
of
is
tax.
come
Committee is able
changes
which,
while not reducing protection to
the investor, will result in stim¬
ulating the flow of private invest¬
ment capital, I believe you will
have performed a signal service
alike to business and labor, for
which both will be duly apprecirecommend
cess
Mississippi,
for
Rivers,
who,
or
Ohio, and Warrior
the costs of the activi¬
of the
ties
U.
S.
Department of
Agriculture in the adjacent areas.
Having
duced
*
by
these devices
"loss,"
a
Mr. Abrams
pro¬
ob¬
jects that TVA power Operations
pay
no
federal
taxes.
The
fact
is, of course, that the TVA power
tive.
the
ules,
benefit
under
are
■
statutes
now
exist, I
conferred
the SEC tremendous power
American
business.
The
upon
over
influence the flow of
private investment is the power
not only to influence the level of
business and employment but to
affect the very nature of our eco¬
nomic system. For the most part
to
power
more
I believe that the Commission
has
moderately and
constructively, but I feel that any
laws
of
this
magnitude which
this
used
thousands
the
at
power
their
of
time
a
enactment
major departure in
should
in
separate State SECs. In
so-called
Blue
sions of the states
curities
This
are
the
The
for interstate
equipment
"Whoever
do,
lar in order that utilities may
as
little
May
as
31st,
past years to im¬
Some
tions
The
Here again,
i
situation.
introduced
been
more
I do not want to criticize the state
additional
an
1945
Tennessee
W.
L.
net
nickel.
Authority
{
Valley
STURDEVANT
of
Director
Informatioh
J
jfj if:
covers
are,
you
whatever
equipment to keep you in
the
h
you
will need Hallicrafters radio
you
new
ffv
touch with
world to come." This sweep¬
the details of their
submitting
by
receivers. From low
present line of
to
ultra
high frequencies there is a
receiver
Hallicrafters
meet
to
your
special requirements. Amateur radio
operators,
listeners
discriminating short wave
by the, hundreds of thou¬
sands, world pioneers
who must have
the finest in communications systems
for
on
use
land,
sea
and In the air
select Hallicrafters—firmly en¬
will
Mt
trenched in the minds of millions as
effecting
minor
have
Congress.
ameliora¬
in
fact, been passed.
and
representatives of
have,
SEC
into
Bills
the investment
banking fraternity
I
radio."
MODEL S-37. FM-AM receiver for very
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of ony general
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coveroge
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proposed
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to
143 Mc. Cover! old and
FM bandi. Only commercially
thii range.
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in six
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a
receiver.
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lit
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hallicrafters
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1945 THE
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COPYRIGHT
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fn
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18 Mc in four
kc to
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lower end of the spectrum.
the
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with the highest
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bands. Combines
superb broadcast reception
I
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MODEL S-36.
BUY A
the
the
expense, more work.
sched¬
being made to pay a dol¬
the spectrum-
policy,
Efforts have been
over
time,
consumers
rate
rr#.
suggestion that I make is
made
more
the
hallicrafters
Congress
not anew one.
prove
se¬
by
light of experience.
scrutiny by
where the
reviewed
be
Sky Commis¬
to be sold.
means
business and economic
our
in addition to the
states have
sale, most substantial issues must
the
of
existing
I*
the
As
why it should
also be presented for
you
I
"the radio man's
believe that Congress has
many
order to be eligible
for by ex¬
doubt¬
was accounted
profits taxes. As
enues,
.
their
Institute,
operating
$210,000,000,
of
ing statement Hallicrafters supports
prospectuses.
after such study, you are
still not convinced, I would like
to direct your attention to the
If,
constituted
SEC,
Federal Govern¬
2%) and still
than
a
documents, realiz¬
these
to
British
dollars.
As you know,
net powdr
cost of
of
whether or not they are, a
to private Investment
liver
practically the entire registration
a subsequent registration. The
printing costs alone of these docu¬
Federal
interest
interest
the
to
is
suffi¬
was
provide
to
the average
investment
money
"1944
year
large
,
exam-
ination,;your
to
the fiscal
ciently
operations
power
less are aware, a number of state
regulatory commissions, disturbed
cinnati,
Ohio, or Birmingham, by rapidly mounting excess profits
Alabama, to be charged directly taxes, have commenced actions to
and solely with the costs of navi¬ recover
at
least
some
of
the
gation improvements on the upper money represented by these taxes
equally the method of
their administration, are facts of
of
for
justification for
the power consumers of the Tenn¬
essee Valley region to be charged
with such costs any more than for
those of St. Paul, Minnesota, Cin¬
selves and
result
in
inome, from
ieave
pay
ci*
The fact is that the surplus,
net
ment
to
ment
ventures, is very im¬
I simply want to point
out that the Securities Acts them¬
a
needed in the equivalent amounts.
pected
There is
new
as
such
forest products, minerals,
of other
portant,
If,
in
ly against
The effect of the income tax laws,
our
of
tivities other than power are gov¬
ernmental functions which are ex¬
are
the
4s
the most important
to
post-war business.
particularly in the case of small
and
research
being, not in cash.
even
stimulant
and
terms of public security and well-
active pri¬
an
fertilizers, agricul¬
development
engineering.
The impropriety of Mr. Abrams'
stratagems is apparent. TVA ac¬
like to
give
market
havb
direcV-
the
average
and
giving
markets.
amount of
many
impression that
vate
as
of
and agricultural
to
want
mannejr
surpluses
under
on
stimulant
on
into
don't
tion
it
not
or
same
copies of what I
Registration
Prospectuses.
I
you
be
then
part
be necessary for a company which
has once registered, to duplicate
runs
the
I
These
reinvested
.
,
closing X would
the
liberty of de¬
of my statements, I ask
you
undertake the task of
and
protection than the other.
ments
Before
in
registration.
of
ing that they are required in the
case
of every
substantial issue,
bought and sold with no particu¬
lar formalities, while dealings in
the new issue, with identically the
same rights and provisions, must
be
supported by a registration
statement and prospectus.
It is
difficult to see why one class of
of
technical
filing of these documents. In
that
outstanding, list¬
ed and traded in daily.
Under
these circumstances that portion
of the issue which is listed can be
I have wondered
to
reading
company
much
feat
not
the
■
so
a
fields
fully justify the time and
effort,so spent.
repeat that
net
substantial
a
"taxes," is available for
use
taxes.
as
industrial
activities,
results
.
the
of all other activities
and improved
investiga¬
the
income
net
with
surplus which, whether
is labeled
TVA appropriations, for any pur¬
pose whatever, and has subtracted
power
Federal
provide the
support
issue already
needs
be
may
local in¬
financing
a
the
neither
have' taken the
am
paricularly striking situation
purchaser
business
of
exhibits which usually accompany
to me paint¬
the
has
Statements
registration statement and
prospectus if it desires to make
a
public offering of new secur¬
increase
think
all
on
federal
tural
would
dis¬
consequences
small
to
think
orate
to
The
livering to
readily available, should be, re¬
quired to duplicate all of this in¬
formation in the form of an elab¬
an
involved
2503)
page
operations
Congress in new facilities
TVA, including navigation, flood to produce electric power for w3r
control, forestry and reforestation, purposes and have reduced thb
of
new
appropriations
experimental production of new amount
a
major importance to
I
change for many years and about
which the fullest information is
wants
I
be
charged against
interest
revenues
expense
simple.
or
would
business and employment picture.
simply can't make
grade. Local investment cap¬
major
ing the lily a bit that a company
whose securities have been listed
and traded on a national stock ex¬
a
can
knowledge nor the expert assis¬
tance required to accomplish the
west.
such
and
But
it
the
ing,
City, but it must constitute
burden to com¬
where
serious
deal, it is practically compelled
to bring it to Wall Street, because
the local dealer, generally speak¬
panies located in the Midwest, on
the West Coast, or in the South¬
A
a
Wall
When
vestment house gets
considerable
exists
companies,
new
quite serious.
accountants, and
usually some
other experts.
Frequently there
are
many
trips to Philadelphia.
That is no particular inconven¬
ience for bankers located in New
,,r
to
and
Street in¬
get along
fashion, but the small local
a
contrary
underwriter
this
plete an issue of securities in less
than 60 to 90 days.
It requires
ities.
the
smaller
to
banker
appeared.
the full time of a staff of lawyers,
It has always seem
fre¬
are
ital markets have practically
usually run
York
they
circumvent
But
vestment
sues,
a
to
ilarly, the large
In our own is¬
dollars.
hire
can
these burdens constitute
issue without
new
or
obstacle to obtaining capital. Sim¬
running into many thou¬
of
sands
a
able
particularly
perience it. has not been possible
the
„
have
Furthermore,
placement.
point out that in our ex¬
easy
On
difficult
burdens of registration by private
Committee by going
into the multiude of detail and
technical
questions involved . in
such an examination, but I would
to
They
quently
of the
like to
are,
under¬
lawyers, accountants, and experts
of all sorts. They don't enjoy
it,
but they can take it if they have
wish to take the
now
and
tion.
pense.
guage
I
few
To
purpose
time
read
by
stood by less.
statutes are
j
Government
Mr. Abrams has
power
..
of
Replies to Mr. Abrams
(Continued from
importance.
I
progress along
But I doubt that
there
is any general desire to ities should not divide the field,
the state Commissions retaining
carry this laudable objective to
looked over carefully, scrutinize
such a quixotic point that in at¬ jurisdiction in issues, say up to
ingly, and constructively by a
tempting to protect the investor SI,000,000 and accepting the Fed¬
eral SEC in issues above that.
Committee.
It
Congressional
from any possible loss of money,
seems.to me that this is a partic¬
The Registration Statement and
we
unintentionally hinder the
ularly significant time to under¬
raising of capital to the point of Prospectus in their present form
take this task and that your Com¬
preventing thousands from find¬ are so complicated that certainly mittee has an unusual
opportunity
the average man cannot under¬
ing productive employment.
to do a very constructive job.
I think that the results of such stand them, and even profession¬
I
would
not wish to give the
an investigation
will disclose, at als in the business have consider¬
able difficulty in
extracting the impression that such a review
least so far as the Securities Act
would be either
investor.
the
2521
'
•
;; * \
,
,-y-:
••;i
..
■■
•
7
FINANCIAL
COMMERCIAL &
THE
2522
Thursday, June 7,0.1945
CHRONICLE
Notes
Bank of Montreal
™E
MIGHTY
FINISH
FINISH
CANADIAN BONDS
THE
THE
GOVERNMENT
FIGHT
FIGHT
After V-E
Tax Changes
of. Montreal,
Bank
the
23
City of
of May
Business Summary
In its
while
MONTREAL
making mention of': the fact that
"the final and complete victory
PROVINCIAL
in the European war
enabled the Dominion
Government to effect an immedi¬
MUNICIPAL
ate, if only partial,: .easement
restrictions upon the production
of the Allies
Maturities from
theatre has
Wood, Gundy & Co.
'
CORPORATION
14 Wall Street,
CANADIAN STOCKS
New York 5
:I
this column,
the importance
of
which reached
its peak following spectacular C.C.F. successes in Ontario and Sas¬
katchewan has since steadily waned.
Clear confirmation of this fact
is now provided by the complete rout of C.C.F. candidates in ihis
INCORPORATED
STREET
TWO WALL
elections.
4»
—>
What will be the effect of this j solidated
Progressive Conservative triumph 1 alone has
Ontario
week's
N. Y.
NEW YORK 5,
RECTOR
j..
j
.
and C.C.F. disaster on next weeK S
N Y-l -1 045
2-7231
CANADIAN
and dissi¬
dent Liberals who previously
C.C.F.
2.
waverers
votes in favor of
Socialistic party should
cast protest
Bought-—Sold—Quoted
the
to
return
Liberal fold.
the
undecided section of the
The
3.
electorate with a last impres¬
Exchange
York 6,N. Y.
WHitehall 4-8980
Opportunity
In Canada Measured
;
of
Reconversion
Canadian
in¬
dustry will require the transfer of
over
half of the Canadian ecor
nomic
system to
a
civilian basis,
of The
monthly letter
says,:the
Caproductivity increased by
about one-third in the five years
of: war in Europe and
brought
•
been
strength will prov.e
considerably over¬
rated, and the Liberals, with Que¬
bec having little alternative but
to give them the customary solid
support, and some strength in all
other
sections
of
the
country,
should
emerge
as
threat is definitely
activ-
upward surge in peacetime
ity and employment. The present
productive system, aided by the
same united effort as made possi¬
ble Canada's
splendid war record,
the letter, could fully employ
the actual working population of
says
country, 4Va million people,
and could provide civilian goods
the
and
services of about $5 billions,
more
or
than are now
Until Japan is
available.
erased, however,
produce
Canada
will
continue to
the
war
against Japan "on a
for
high scale," while also helping
supply the forces of occupation
Germany
for
a
on
to
in
greater scale and
longer period than
a
a
considerable
likely that the
is
it
Thus
tions.
mining section of
Stock Exchange
the "Kaffir"
section of the London market.
Turning to the possible future
course
of the market, favorable
Canadian
gold
York
New
the
rival
time
in
will
had pre¬
viously been considered necessary,
asserts the bank.
*
opposition
past
week,
once
more
High
tion.
and
a
section
external
the
displayed little anima¬
little
grades
were
off their
inactive
best levels.
in
also
met with some demand. Albertas
were
dull following profittaking
and some uncertainty regarding
There
was
renewed
interest
Montreal and. Saskatchewans
the financing
of the debt refund¬
ing plan.with
were
active and buoy¬
Canadian
stock
Although
Pacific
the center of attention.
price has doubled since the
resumption
of
dividends
this
stock still has interesting possibil¬
ities., The Canadian Pacific Rail¬
however,
movement,
and
Dominion of Canada
bonds
should prove
clear,
ternal
as
is
horizon
political
the
as
soon
Saskat¬
in
Montreals,
and
in¬
de¬
cidedly attractive.
v
Flag Day Proclamation
proclaiming June 14 as Flag
In
and
its
51%
ownership
of
Con-
of
sense
our
Associated
the
May
President
the
that
added
reported
28, and
Press
Washington
from
con¬
asserting that "solemn¬
tinued by
ly, we accept the responsibilities
placed upon us by our power.
"We honor the men and women
services and in the
the armed
in
and
factories
God's
help,
homes
have
who,
given
us
with
our
victories. We face the battle ahead
solemn
with
gratitude for the
triumphs of the past.
"Our flag has accompanied our
fighting men on a hundred battle¬
It
fields.
over
have
flies
the friendly lands
freed, and
our
the
beyond
over
arms
our
seas
arms
the hostile
have
con¬
quered., Our flag will be planted
in the heart of the empire of our
last
remaining enemy."
mobiles has
graduated scale ranging from 25%
to 80% to a flat 10%; the excise
tax
has
joined
F.
of
D.
the
ing.
City
BanK and Trust Company
Support The 7th War Loan
Vice-
await
Parliament to
is
Minister
Finance
his
within
pressed
but the
acting now,
month,
next
elected
be
the
powers#' for
with
Assurance
Life
Equitable
The
non-war industry.
in' the
supply of
and
building
increase
An
building materials and the expan¬
and modernization of indus¬
sion
try
contemplated
are
'the
ef¬
every
the full the
achieving to
to
and
bend
will
Government
housing
programme
which has
been announced."
The bank in
to remove or relax
maintaining
are
restrictions as
conditions warrant, while
soon as
necessary
those- controls that
where acute scarc¬
T.I.Parkinson
ity threatens the continuing war
or essential
civilian
Under conditions of in¬
controls are to
programme
supply.
adequate supply,
be
exercised
so
use
of
to facilitate the
as
materials and
manpower,
productive facilities for such ap¬
proved purposes as the rehabilita¬
tion of liberated countries,, the reestablishment
and
expansion
of
exports, the reconversion
non-war
Society
States,
United
the
of
which he has headed as
President
since 1927.
celebrated by a
The event was
dinner
his
in
at
honor
the
dorf-Astoria, attended by
300 employees and officers
themselves
Equitable
longer.
have
•
been
who
with The
century or
quarter
a
Wal¬
some
*
■
and expansion
of industry, the reequipment
of
agriculture
and
other
primary
industries,
the
housing programme and an in¬
crease in the output of consumer
for
goods."
Peru
Envoy to Peru
nominated
post,.of Ambassador to
President Truman has
the
William
Pawle'y, of Mi¬
D.
ami, Fla., to succeed John Camp¬
bell whose retirement after thirty
Canadian Crop
Report
The crop season is two to three
weeks
of
late
in nearly
all sections
Canada
owing to recent cold
weather, according to the current
crop report of Bank of Montreal.
During the last month rains have
excessive
from
eastern
On¬
the
conditions
moisture
vary
from
Red
an
now
over-abundance
River
area
in
reserves
and
to
in
deficient
portions
of
sas
and the
sowing of coarse grains is
well
Taylor, Deale
&
Company
STREET, NEW YORK 5
WHitehall 3-1874
the
under
Prairie
way
Saskatchewan.
in
Provinces
Alberta
and
In
Manitoba, op¬
erations have not been as rapid,
but
they
are
now
progressing
under
more
conditions.
favorable
weather
in-foreign service has
years
beeii
President.
approved by the
Pawley, an aviation pioneer inChina, Cuba and India, organized
American
He 1
a
former
Intercontinent Corporation, which or¬
ganized the first commercial avia-,
tion company in Cuba, which late
the
Flying Tigers, the
China.
president of the
Volunteer Group in
American.
sold to Pan
was
1933 to re¬
National Avia¬
He went to China in
organize the China
tion
Alberta.
Bond
June 1
marked his 25th anniversary
rapid resump¬
tion of production for the home
and export markets-, and the ex¬
pansion of employment in house¬
in
years.
Quarter Century
Thomas I. Parkinson on
encouraging
of
purpose
ex¬
Wheat seeding is nearing com¬
64 WALL
NY 1-702-3
and facilitating the
Saskatchewan
of Kan¬
buying work of the bank's
bond department.
Mr. McKim is
a native Missourian and has been
a
resident of Kansas City for 20
New York BjN.Y,
Bell System Teletype
"General tax changes must
action by the new
pletion
the
Grpokation
40 Exchange Place,
terials.
subsoil
National
City, Missouri, and head of its
Department, as his assistant.
Mr. McKim will be in charge of
Dominion Securities
plied to producers' machinery and
equipment and to- building ma¬
west
MO.—Jim Mc¬
Farrell,
Toronto and Montreal
radios,
on
tario to the Atlantic, while to the
Kim, who has been in the bond
business in Kansas City since 1927,
Direct Private Wires to Euffalo,
,
in
Lubbock
LUBBOCK, TEX.—M. W. Mc¬
Carty is engaging in a securities
business acting as dealer-broker
McCarty
City Nat'l Bank
President
removed; the spe¬
auto¬
been reduced from a
has been
ances
cial excise levy on passenger
been
KANSAS CITY,
request
asked that part further said:
"a fresh
"In line with this policy, con¬
strength as a nation", trol
agencies have been instructed
McKim Asst. to Farrell
at
on
Day, President Truman
it
be
observed with
is more than a railroad. Its
extend throughout
the Canadian economic structure, Ifrom offices in the Leader Buildramifications
available
to say:
"The
special tax of 25% on
household gas and electric appli¬
the
way
Up-to-date Summary
ued," the bank went on
fort
countries
Internals
ant
.
chewans
majority
and the C.C.F.
removed, Can¬
ada will be equipped with the po¬
litical machinery best suited to
enable its economy to function to
the best advantage, and will have
effectively
demonstrated
the
fundamentally
sound
political
mentality of the Canadian people.
Turning to the market for the
cial
presents great opportunities for
utilizing new productive facilities
and new skills with a consequent
the
party, Moreover, if the Progres¬
sive Conservatives supply the offi¬
Canadian Bank of Commerce.
changes, which, with the
gradual decline in war production,
that is
expected from now on,
I.
have
to
nadian
many
•;
also
was
developments are likely
sion
of an apparent swing
to maintain the high grades, but
towards
the
right
should
at these peak levels and with the
gravitate towards the Con¬
supply scarcity little increase in
servative camp.
activity is to be expected. There
The
final
analysis, therefore,
still appears scope for profitable
still supports previous predictions
that the C.C.F.
Posl-War
There
political
CHARLES KING & CO.
focmbers Toronto Stock
Mining and Smelting
far-reaching possibil-
! ities.
probable
King.
kenzie
STOCKS
61 Broadway, New
~
,.,
posed for purely war-time needs
have been lowered or discontin¬
phonographs and
cameras
has. been reduced from
turnover in gold shares as a re¬
repercussions are likely to be the
to 10%; the sales tax on
sult of continued successful drill¬ 25%
following:
ing operations.
The tremendous building materials (discontinued
1. Faced with an apparent redevelopment of Canadian gold before the war and -reimposed in
surgence of Conservative
mines which is due to take place
1941) has been removed; and the
strength the Quebec Liberals
war
exchange tax, imposed for
in the post-war period should lead
should close the ranks and
to recourse to this market on a temporary purposes in 1949, has
tend
to unite
behind Mac¬
large scale for financing opera¬ been rescinded in so far as it ap¬
The
elections?
Federal
v;-
;
Prices to Yield
3.60% to 3.85%
taxes im¬
Stating that "certain
time, as emphasized in
Canadian Currency
or
;-.Vi
progressive changes are now
possible."
political observers here have greatly exaggerated
the C.C.F. movement in Canada.
This movement
CO.
against Japan
war
and
that
A. E. AMES &
Payable in United States
as
continues,
.there can be no complete recon¬
version of Canadian industry," but
that
nevertheless "wide
spread
the
BRUCE WILLIAMS
By
that "so long
however
noted
Canadian Securities
It has been evident for some
civilian use"
commodities fob.
of
Incorporated
1959 to 1975
of
.
1
which was tn
Corporation,
operate in
first air line to
He
organized
built the
China
first
in
1934
first
aircraft
was
taken
16th
Air
base.
over
Force
negotiated
and
India to
contract in 1939 for
its
Chin. *
the company tn
airplane factory
buj
•
wn
1943 by I e
company,
in
as
a
maintenance
Number 4392
Volume 161
THE COMMERCIAL & FINANCIAL CHRONICLE
Speculation Controls
the Administration.
stories
have
to the general
i
newspaper
correct as
nature of the measures under con¬
sideration, although less accurate
in the specific margin percentages
they have been mentioning.
The
been
of Economic Stabilization,
Board
which advises the* OES, is very
sympathetic to the idea,.that some¬
thing needs to be done, and some
recommendation from it is sure to
be forthcoming quite soon.
Sta¬
bilization
Director
William H.
Davis, who is temporarily out of
directly
reports
town,
the
to
at present working to put
into legal form.
yers are
opinion that
imous in the
J
%
some ac¬
deal with the
tion is necessary to
problem of rising capital values.
The Board includes, in addition
the
of
Secretary
Davis,
Mr.
to
Morgenthau, Secretary
Anderson, Secre¬
tary of Commerce Wallace, Sec¬
retary of Labor Schwellenbach,
Treasury
Agriculture
of
it:
'•V
"i
I
.1
3
the Budget Bureau,
heads of
the
War
SEC,
Board,
Labor
War
OPA,
Manpower Commission, the
War Food Administration,
Loan
National
Agency,
is
admittedly
not what it
it is held there is a lot
was,
of it
going
on
than
once
more
brokers
some
In this respect it is pointed
during the past 12 months
say.
Federal
Housing
the
follow¬
there
have
been
times
when,
in
A. O'Neal
Bureau
G.
Patton
of
Union,
ers
the American
of
Federation,
James
the National
Farm¬
George
and
the Mead Corp.
Apart
above
;
.
advice
of the
Board, the OES has for con¬
cf
recommendations
sideration
the
,
the
from
of
Mead
Federal Reserve
Board, the Budget Bureau, etc.
SEC,
the
While it
Davis
certain that Mr.
seems
will
have.some
soon
ommendations ready for
Truman'
consider,
to
President will do is
rec¬
President
what the
not
clear.
so
One hears various views expressed
in
Washington.
informed
,
the
wishing to
make a prediction, none' the less
expressed the view that probably
nothing will be done to curb capi¬
tal gains -'at this late date."- The
time
this
do
to
was
in the
early
there is
war,
whereas
eral
disposition to hesitate about
putting
now
on more
a
gen¬
Government con¬
trols, he stated.
Moreover, con¬
siderable price rises have already
and "to clamp down
would be, to some extent, a
occurred,
now
of
case
after
closing
the horse
stable
door
had been stolen."
the
This is not to say that there are
doing
something even now, he added.
Some
people
feel
that,
when
wages and other prices are being
not
for
arguments
good
controlled
from
gains
officially,
speculation in stocks and real es¬
tate
go
should
on
be
not
aspect of the
permitted
to
Another
problem is that capi¬
at
as
present.
tal values may become so inflated
that, their later return to more
justifiable levels might be
troublesome matter.
Views differ
as
a very
•
.
to how inflated
stock prices now are. In any case,
it seems always possible thaPspec-
ulative fever might take hold and
drive
the
stock
market
to
boom
was
somewhat less.
was
Floor
Trading, Again,
SEC
Matter
a
Is Watching
Reserve Board for
"customers'
debit balances," has been growing.
Accord in e to the Federal Reserve
Bulletin, these debit balances
were
only $48-3,000.000 in June, 1942,
estimated
an
April,
1944, and $1,034,000,000 in March,
1945. The figures are not regarded
$780,000,000
in
available,
Let's
can
of
offer returning servicemen.
are
qffcrecl
in
private
wartime tax of, say
gains.
He
special
a
90% of capital
regards
the
present
capital
gains tax as very loose,
especially as it applies to people
in
the higher income
brackets.
His
however,
proposal,
has not
favorably in the
Treasury, which would have the
been
viewed
job of selling the idea to
tant
Congress.
a
reluc¬
This has given rise
to the
alternative suggestions
to
effect that the definition of "short
term"
in
should
the
be
months.
ignored
frank;
be
flying,
returning G.I.'s.
Let's be honest,
moment disil¬
capital
extended
gains
to
24
or
to the present.
up
of
us
orizing and take
can
„
taxpayer's other income, and taxed
accordingly.
action,
more
of
to
field — one
which will provide jobs for thou¬
sands
of
air-trained
boys
In appraising the true job pos¬
sibilities his industry will offer,
Mr. Monro stated that "the nimble-
things,
other
many
aviation
will
stated
various
their
is
retain
the
commenting
of
the atti¬
upon
the railroad
actually
dream
of
"for the
railroads—integra¬
propaganda
the
tion." Even President Truman has
characterized
these
"integration"
em¬
attempts
"cartel
as
at
monop¬
olies."
military
"The
used by' the
aviation, and
propaganda
railroads affects all
chosen
that
impetus
thereby our national defense of
future," he said. "Integration
the
all
of
forms
of
hinder
would
intensive
public
the
carriers
of
progress
development of private flying will
produce an increase in manufac¬
turing, a vast increase in aviation
transportation from the develop¬
schools
stultification, stagnation and kin¬
and
centers
with
activities.
mean
ment
that
open
to
airline
of
all
ment the
kinds
all
dred
tion
only does this
a wide variety of employ¬
opportunities, but the over¬
education of the
public to
ills to the field of transpor¬
tation.
services and
"Not
a
public not only expects
bring about
but demands. It would
incalculable
an
number of corallory
mental flight into
the wild blue yonder at the drop
of a suggestion have predicted,
among
former
the
to
together
minded folk in aviation who are
a
return
He
service," Mr. Monro stated.
ready to take
want
give
said
that this opposition, while
supposedly against an airport bill,
their present
gation," Mr. Monro said.
in
now
in
a
industry in
opposition
to
pending
national
airport
legislation,
Mr.
Monro
profes¬
sion.
"To re-employ them is not
only our moral but our legal obli¬
we
great
a
of
will
widening circle of
transport services who will want
assist in the full blown devel¬
opment
commercial
tax
36
ployees
other problems.
But if
in aviation do less the¬
many
consider
thousands
private flying
In
be ignored.
develop¬
the solution
on
must
He said,
increase in
an
and force to
tude
loyalty in the war effort cannot
In addition there are
Private
the
on
airports,
lines
contrary,
aircraft usage of all kinds.
jobs in airline work by
1948 which will be filled, the air¬
a
the
a
The PCA head said that of the
majority
practically
been
depends
ment
of
have
commercial air travel."
on
100,000
opportunities
career
viewpoint of people in his
industry that private owners,
private flyers would
minimize
row
lusion anyone — especially those
fighting men to whom we all have
an obligation that is sacred."
to
new
"Countless
offer the
and let's not for
jobs will
new
supplement the
jobs and oppor¬
tunities that commercial aviation
all of
time has
some
felt that there should be
Further, by denying avia¬
the
future
that
be
can
at¬
tained, this action by the railroads
would
be
a
blow to
post-war
em¬
ployment."
use
vast' new field of opportunity for
returning servicemen. By affirm¬
ing and re-affirming this open
door policy of employment, I don't
doubt but that
in uniform by
men
the thousands will look to the air¬
lines for their-peacetime jobs. Our
The foregoing suggestion,
which
business is
going to expand,
many
would require action by
is
of
one
.
which
trio
a
Congress,
suggestions
of
being
discussed
in
A
second
is
the
are
Washington.
promulgation of an executive or¬
der
or,
alternatively,
Congres¬
sional
legislation,
prescribing
down payments on farm land and
residential real estate purchases.
The third suggestion is that ex¬
isting margin requirements for
stock purchases be increased by
Federal
the
Reserve
Capital
Board.
in opposition
the tax on capital
principally three: (1)
that such an increase would 'dis¬
courage sellers and so force prices
up;
(2) that such an increase
would discourage venture capital;
(3) that the suggestion deals with
the effects, not the causes of the
high prices of stocks and land.
These objections in turn elicit re¬
gains
are
joinders.
Farm Real Estate
Values
Experience with farm real es¬
values in the United States
tate
has followed
fairly closely the pattern of the
last World War.
Most of the in¬
crease
has
taken
place
since
March, 1941. Increases have varied
from State to State. In eight States
prices for such real estate
last
November were 60% above the
1935-39 level. The number of vol¬
during
this
war
of farms reached
an all-time high of 53 per 1,000 in
1.943. Despite a decline since then,
the figure still stands above the
1919 peak. It is theorized that the
slowing
down
of transfers of
farms is due to virtual liquidation
of the holdings of institutions.
It
untary transfers
might also reflect a reluctance of
buyers to bid for farms, or a re¬
luctance of present holders to sell.
About half
cash,
and
of all farm sales are
of mortgage sales,
three-fourths involve mort¬
of the sales
value. In California, a study dis¬
closes, about 20%' of all tiansfers
were resales within two >eais of
purchase and about 45% were
transfers to non-farmers, during
gages
of 50% or more
the last
quarter of 1944
which will make
Factors
the
are
continuance
of
Govern-
mfeht guarantees of 90 % of
prices
for
products,
demands
returning
expected
and
for farms
parity
agricultural
.certain
the part of
on
veterans and workers in
dustries.
Therefore,
pointed out, with
values
no
.
it
in¬
war
being
is
controls, land
continue rising and by
can
well exceed the pre-war
level by 80%, with mortgage in¬
debtedness
increasing
to
continuance of the rising trend in
farm land values in this country
1948 may
Gains Tax
Points being urged
about
brokers,
be
number
flying
Chairman Eccles of the Federal
lation.
of
thousands of
many
can
planned'4
and
own
exactly what commercial avia¬
tion
Their hard work and
for
The amount of dollar bor¬
of
private flying and other aviation
will
proportions.
Officials note there
has been some evidence of specu¬
rowings
.
.
fostering
their jobs.
ing
while ; not
problem,
/
..
employees
with
the' writer ridiscussed
whom
\
<
"We can, however, by
of rwhich
margin trading.
Iii terms of dollars, the proportion
Views
official
he stated.
present
promotional activities," he said.
Mr. Monro challenged the "nar¬
peaks.
commercial
aviation
does
have its limitations, as does every
industry. So it is important that
we
have a clear understanding
them,"
use
pre-war
pn-.the NYSE
Arguments Heard Against Increas¬
Official's
One
One
who will want to
our
field which has the broadest pos¬
sible ramifications, the
would be counted along with the
ward
But
aspect of aviation, who have
acquired new skills in aviation,
over
terms of number of shares traded,
as
much as 50% of the business
If that * were done, all
capital gains within such a period
Farm
some
out that
L., Philip Murray of the CIO, Ed¬
and
times
fields develop the industry so that
ing: William Green of the A. F. of
Administration,
'■k
de¬
a
While •margin trading in stocks
noteworthy, and not gen¬
erally appreciated, that the Board
of Economic Stabilization is unan¬
i
portray
veloping picture.
the program
It is
to
seem
Government law¬
House.
White
they
military service who have learned
and
as alarming in themselves, but
they are viewed as disturbing in
that
industry's
(Continued from page 2505)
(Continued from page 2503)
The
scheduled air transportation which
will have an effect
dwarfing our
JPpsI-War Private Flying and Employment
Washington Pondering
porters in
2523
foi a
simultaneously
ex¬
panding.
After
1948, however, according
observers, agricultural
prices may decline considerably,
to the
same
though employment and na¬
income remain high, with
even
tional
that
values
land
the
result
may
shrink to 120% of the 1.935-39
farm
This forecast is
level.
supported
by the facts that production has
been greatly expanded during the
war, that world competition will
have to be met, etc. But, if there
should be
tional
a
marked decline in
the
income,
pressure
l
.
When Japanese searchlights sweep the sea, our
na¬
Here,
as
on
PT boats lay
a protecting
front, quick communication is vital.
every
,
smoke screen.
:
t
on
i
values
land
farm
will
be
much
»,
j.
-M
»?
i
greater and they may decline be¬
low the 1935-39 level, it is rea¬
i
in
soned.
In
Wherever
to the
answer
are
are
not
The
tal
returns
The needs of
industrial
to
after
decrease
will
plenty of it.
telephone
said to be overlooked:
labor
will increase, and returns to capi¬
(1)
the
;iMjis in-§;|:
war.
So, in agriculture, returns to labor
also in¬
with returns to land de¬
management should
and
crease,
the thick of it
the
technological
areas
some
be
a
interfered
you're waiting for a hom$ftele-
And
to
know
that
your
trend
with
wait
as
short
as
possible.
by continued high land values.
In short, it is
land
values
being argued that
already
are
BELL
too high
TELEPHONE
SYSTEM
period and that»'
any
further advances
in farm;
lands
will
only make post-war
for
the post-war
price and production adjustments
more
LISTEN
serious.
<tf
we
are
doing everything we can to make
developments
be increased,
would
big and
continuing to meet those needs.
reason.
require that the size of farms in
which
still
phone, it helps a little to know the
or
families is to keep pace with that
of the rest of the nation; (2) re¬
cent
are
war are
telephone manufacturing plants
our
If
remaining constant, if
standard of living of farm
creasing
fight, there is tele-
phone equipment—the best and
too
high if a
of agricul¬
tural prices and income is main¬
tained after the war, "two basic
factors"
our men
argument that
values
high level
land
present
,
W
*
."HI,
TO
**■*-*•
"THE TELEPHONE HOUR"
*
.
*
•
«
«k
*
«'
EVERY MONDAY EVENING OVER NBC
N
Thursday, June 7, 1945
"
CHRONICLE
& FINANCIAL
THE COMMERCIAL
2524
(Special
LOS
to
The Financial
Chronicle-,
ANGELES,
D.
Harry
Herring
Maxwell,
CALIF'
is
Marshall
now
witK
Co
fiS
&
South Spring Street.-
Union Bond-
(Special
Fund A
to
LOS
The
James
E.
ciated
with
Prospectus upon request
Financial
Chronicle)
ANGELES,
Hill
CALIF
has
become ass(T
Walston, Hoffman I
Goodwin, Bank of America Build
Mr. Hill
ing.
previously
was
with
Blyth & Co., Inc. and Pacific Com,
of California.
pany
Lord, Abbett & Co.
(Special
INCORPORATED
YORK
NEW
CHICAGO
•
•
LOS
ATLANTA
Herbert
LOS ANGELES
•
Prospectus on request from
■>
•
'•
•
'
'
.
'
The Nation's
(Special
Minneapolisy Minnesota
Liquid Funds
1
reached the
astounding peak of $159.3 bil¬
lion and are now three times
»
,
purchasing
tial
mensions
~
never
is
"There
Prospectus
funds
will
continue
to
increase
lasts—and so,
too, will the deferred needs for
peacetime goods.
so
long as the war
satisfy this de¬
points to
a
high level of business activity
for years after the war."
mand, all the evidence
National Securities Series
Securities Se¬
the fiscal year ended April
Assets of National
ries for
$23,638,455,
30, 1945, amounted to
ies, stated:
judgment
&
sponsors
The
of the ser¬
"It is the considered
of the economics and
•
department
of
income taxes, should
result in a high level of earnings
and dividends for a majority of
American corporations with pub¬
corporate
usually valued at a
higher ratio in peacetime than
under abnormal wartime
condi¬
earnings are
•
The Salesman's Point of View
Distributors
week
Last
Group
an
unusual piece of
literature—a folder entitled
published
sales
"What Mutual Funds Mean to
as
an
You
Salesman."
Investment
It
language why Mu¬
"good" for the
who sells securities as well as
tells in simple
tual
man
Funds
are
for the man who buys
is
the
Group
it:
analyzes
"There is
between
St. Louis, Mo.
to
to The
&
man—and
MO.—Allen O.
;
must have
wide range of
you
available to you
the
merit alone.
on
this
do
"To
a
best securities—ability
to se¬
this list without bias-
lect from
ability to shift in and out as rela¬
tive values change.
This is just
what the specialized
32 for
Abbelt's
Lord,
ment Bulletin on
customer—prefers
Capital Stock of
Invest¬
current
Shares shows that during
ness
the
ended May, 1945 this fund
outperformed the Dow-Jones In¬
dustrials; by
eight
percentage
year
the equivalent of 320
Since the management
for this period amounted to
than 20 per share, the result
points, or
per share.
fee
less
American
of
holders
that
was
better
320
Business
Shares
off for
20 management fee
a
were
than
they held the stocks in the
Industrial average.
had
Another
Stock
teresting
Fund
to
The
on
Stock Exchange. In
the
from
of
end
New
the
the five years
1939, working
corporations
capital of American
the
market
listed
on
York
by 80%,
of
value
New
the
Exchange has
all
"The
higher
gained only
increased
dividends
likelihood
in
a
of
period
when the net returns offered by
I
INVESTORS
Founded 1932
The
ONE
BOSTON.
COURT
STREET
MASSACHUSETTS
securities
of
Co.,
The
Chronicle)
Financial
ME.—Henry
C.
Middlebrook,
&
465
ME. —John
with
connected
is
T.
Paul
&
Mr. Hale was previ¬
L. Putnam & Co.,
Inc., and Eastman, Dillon & Co.
ously with F.
are
^Special
recorded should
ever
favoring higher
stock
common
prices."
*
.
,
Case for the "Prudent Man" Rule
Both
Vance,
lected
Sanders
Investment
current
and
in
Co.
Se¬
their
publications comment
trustee investments.
to
Mr. Hooper was
with Coburn & Mid¬
dlebrook, and Townsend, Dabney
& Tyson.
V
■.
change
Keystone Corporation
/
of Boston
Congress Street, Boston 9, JMasj.
Street.^
previously
■
points out that in adopt¬
rule which authorizes
ing, this
trustees to invest in every kind of
lead
of
some
the
Under
other
12
trustees are
"prudent"
men
would
do
Building.
with
Co., Porter
Wallace
Mr.
formerly
was
Blyth & Co., Inc.
(Special
states.
man'" rule,
to be guided by what
"prudent
.Chronicle)
(Special to The Financial
PORTLAND, ORE.—Herbert N.
Wallace is affiliated with William
property, Illinois is following the
to
The
Yancey is
Financial
N.
RALEIGH,
now
C.
*
—
Chronicle)
Robert G,
with Oscar
Burnett
Co., Commercial Building.
&
under
the
same
circumstances, "not in
regard to speculation," but in the
permanent disposition of funds in
consideration
as
well'
of probable income
safety of capital.
as
(Special
is
Abstracts.
...
Hugh W. Long and
21,
.
Current
News
Distributors
.
.
issues
and
News.
.
.
of
.
—
Investment
Railroad
Selected
Co. —Current
Group
SAN
Fred
"These
Things Seemed Important."
have
become
Johnson
Mr.
(Special
to
The
FRANCISCO,
Charles
payable
June
20,
1945
holders of record
to
Second
(Special
stock¬
May 31.
to The Financial
COMMONWEALTH
has
Bessel
ST.
been
&
^
added to tn
Austin, Inc"
Financial
The
PETERSBURG,
Frank R. Liggett Jr.
&
Chronicle)
Torrey, Florida
Chronicle)
FLA. --
is with
Conu
National Ban*
Building.
in Sacramento
CALIF.--Jame3
opened offices in
State Life Build¬
Green Opens
on
SACRAMENTO,
Request
★
B.
general distributors
Distributors
NORTH AMERICAN SECURITIES CO.
Building
RUSs
Building.
Bank
to
Mutual Investment Fund
2500 Ruts
Co.,
IND.—Nathaniel
Harrison
of
(Special
COMPANY
wit"
Goodwin,-is
&
Kaiser
SOUTH BEND,
R.
INVESTMENT
CALIF. -
Building.
share
a
Chronicle)
previously
Quine,
wisth
now
Dividends
Massachusetts Investors
Fund—A dividend of 110
Build¬
formerly
& Co.
Financial
Walston, Hoffman &
/
Russ
was
with Conrad, Bruce
SAN
CALIF. B.
associated
and Norman
Johnson
R.
ing.
Chronicle)
The Financial
with Davies & Mejia,
Investments
of
to
FRANCISCO,
Thomson
Equipment
issues,
Chronicle)
Financial
The
Oregon Building.
(Special
Co.—Revised prospectus on Fund¬
amental Investors dated May
1945,
to
SALEM, ORE.—W. T. Leminan
with
Conrad,
Bruce & Co.,.
Mutual Fund Literature
Lord, Abbett—Current issues of
W. R. BULL MANAGEMENT CO., INC.
St., New York 5
.
.
on
J. Collins &
Brevits
Financial Chronicle)
The
to
PORTLAND, ME.—Raymond F.
Hooper has joined the staff of
Bond & Goodwin, Inc., 120 Ex¬
powerful factor
a
Prospectus
15 William
■tliin
&
ton, Mass,
★
or
,
50
Dalton
Co., Inc., 50 Congress Street, Bos¬
has been added to
classes
he obtained
local investment dealer
or
CORPORATION
Hale
CALIF.—
ANGELES,
FUND Inc.
PARKER
to
National
Prospectus of Incorporated
THE
connected
now
Ff
PORTLAND,
York
REPUBLIC
may
is
Congress Street.
lan
your
Chronicle)
WIS. —Mathias
Water Street.
Coburn
staff
Prospectus
Financial
Spring
Chronicle)
Financial
continue to be
presents an in¬
chart
20%.
one
other
Bulletin
Investment
listed
stocks
while
from
of
from Lord, Abbett on Union Com¬
Stock
be obtained
South
623
Co.,
the lowest
Dow-Jones
stocks
Investors may
429
Meyer
Berry has been added to the staff
CALIF.—
West Sixth Street.
530
American Busi¬
has increased on average
from investment dealers
Financial Chronicle)
Illinois' adoption of the so-called
"prudent man" rule with respect
2
tions with the market value of all
C
Mr.
(Special to The Financial Chronicle)
(Special
mutual funds
provide. This is Selective Group
Investing."
ac¬
yst
The
Gardner
(Special
: ~
the staff of Oscar F. Kraft & Co.,
Chronicle)
Financial
CITY*
and
latter
Ke
;
Street.
LOS
securities'
approach. It means a
disinterested weighing of values,
the
The
to
735 North
G. Kramer is with E. F.
Hutton
1012
Inc.,
Co.,
&
customers'
Every experienced securi¬
counts.'
with
Inc.,
with
Merrill
Pierce;- Fenner & Beane,
Granberry & Co.
with
•
.
ANGELES,
Richard
comparing
the
working capital of U. S. corpora¬
world of difference
your
Co.,
Street.
PORTLAND;
Avenue.
selection based
mon
a
'selling
'managing
ties
them. Here
Distributors
way
&
our
corporation that, following the
period of reconversion from war
to peacetime activities, there will
be several years of high business
activity. This, coupled with lower
-.oo :
affiliated
now
Bartelme
J.
affiliated with Mer¬
new york 5, n. y
(Special
:
Chronicle)
Street,-
Co., Inc., Ill North Fourth
(Special
Chronicle)
Financial
Waddell
KANSAS
investment
Financial
MILWAUKEE,
with Slayton &
Glore is connected
Frank J. Koch
tio."
Shares of
;
MO.—Percy B.
Albert W. Hillmond
and
Baltimore
security prices, particularly since
Securities
Corporation,
Chronicle)
Financial
CITY, MO.—John L.
become
connected
become
rick,
GROUP, Incorporated
Research
National
The
Board of Trade Building.
have
licly-held securities,
"In turn, this favorable situa¬
tion should be reflected in higher
with
compare
to
has
Willits
assets of $9,802,026 for the fiscal year ended
April 30, 1944.
H. J. Simonson, Jr., president of
and
■
(Special to
Request
on
DISTRIBUTORS
63 wall st.
The
Market
(Special
making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
If ycu contemplate
LOS
demand exists
"Where both the
and the money to
Broker-Dealer Personnel Items
KANSAS CITY,
"that these liquid
now
South
previously
and
pany,
Croup Securities/ Inc.
indication,"
every
is
Lynch,
with B. C. Christopher and Com¬
nessed in this country.
states Keynotes,
Company,
O'Neal-Alden
;'.u.
was
KANSAS
A Class of
poten¬
power of di¬
before
wit¬
to
is
Meyer
ipt
West
Patrick
in the
as they were
1930s. This represents a
large
as
•
(Special
Steel Shares
Today they have
i*
■
:','v
'
•
&
LOUISVILLE, KY.—William T
Keystone Corp. presents a
billion,
Chronicle)
Spring Street.
INVESTORS SYNDICATE
chart in the current issue of Keynotes
which should give every investor food for thought. The chart shows
the volume of this nation's liquid funds in each year from 1895
up to the present.' At the beginning of the first World War, liquid
funds amounted to $20.0 billion.
They rose more or less steadily
from that point until 1929 when they reached a temporary peak of
$55.2 billion. At the beginning of
the
present war,
this nation's'
liquid funds amounted to $60.9
-
Financial
with Dean Witter & Co., 634
Mutual Funds
t'i ;
The
Hutton
F.
' '
•
.
Principal Underwriter
to
ANGELES, CALIF-.
A. May, formerly with E
.
the
San Franciico 4
u
Green
has
California
ing to
act
securities.
erly with
dealer-brokei in
was foin*
George H. Grant &
°'
as
a
Mr.
Green
Number 4392
161
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
2J23
The Anglo-Chilean
Back
The
Exchange Agreement
I
;
(Continued from page 2508)
.
Kingdom registered at!
Bank of England
Special Accounts of ex¬
change
banks or, in special
cases, of institutions
and firms
United
the
,,
r
to
or
operating in Chile which may,
subject to the prior agreement
the Banco Central
of
de Chile
England be
of
Bank
the
and
opened with their United King¬
correspondents after regis¬
dom
tration at the Bank of England.
Sums
freely
be
may
trans¬
ferred from one Chilean Special
Account to another but shall not
the
of
and
transfers
sterling
area
shall
be
subject to a special agreement.
transfers of Sterling by
the Nitrate Corporation of Chile
Any
Limited to convert such money
to pay the Govern¬
any part of its
into pesos or
Corporation's prof¬
share in the
its shall pass
nel of
through the chan¬
Special Account.
-
a
Sterling balances standing, at
the date of the coming into force
of this Agreement, to the credit
of persons,\ firms or corporations
resident in Chile may be trans¬
ferred to a Chilean Special Ac¬
4.
count.
these
7;:7;
;/;;:;\^;777%77
Other
sterling
require¬
ments
of
Chilean
Govern¬
ment.
;'A
the
i-
(c) Interest and dividends
on
other British investments.
7k; (d) Shipping freights and in¬
surance.
7:
"
,
1
•
'-J
'.
Sterling area exports to
-V' V-..'" ■, '7.' 7
.777:. ■. •
(e)
Chile.
(f)
to the
Other payments by Chile
sterling area.
The Chilean authorities shall
6.
Hancock
Insurance Co. offer¬
ing
now
municpal market will be
further
tances for financial
ture.
sterling
Payments
Special Account,
Such
to
balances
services, and
to
'
paid
non-resident's
7,7
'
Transfers between
Area
other may
-'7,
not be
count.
Sterling
Chilean
a
>
may
other
any
area
in
(b)
ac¬
77\:
'
Chilean
one
Account
and
an¬
not be made.
corded
the
11.
into
This Agreement shall come
force on the date fixed by
agreement
between . the
Banco
Central de Chile and the Bank of
England. It shall
run
from the time it
comes
and
shall
newed
for
one year
into force
be
automatically re¬
equal periods unless
for
either party, three months before
maturity,
any
informs
of its desire to
All
shall
the
be
the other
end it.
difficulties
in
application
may
of
the
Payments Agreement
resolved
Banco
well
Central
de
Chile
application.
In
13.
ac¬
.
This
least
at
to be
appears
a
comfortable inventory of
bonds, bulk of which has been ac¬
quired as a result of the rather
heavy volume of portfolio awards
consumated during the past month
so.
-
.
Fortunately, these deals
tionate
of financing
volume
by
municipal governments them¬
selves,
as
the
market
was
obliged
ground,
quence
yield
to
considerable
pricewiseL in
conse¬
of the heavy outpour of
secondaries alone. In any event,
the
result
of
of these
some
re¬
demonstrated
operations
that the market, particularly
the
of
case
surfeit
a
some
of
ample, in the action of the John
Hancock Mutual Life in rejecting
submitted
offers
for
the
ap¬
proximately $20,000,000 New York
City securities which were part of
total offering of $52,379,000.
Evidently
the
prices
tendered
were in recognition of the recent
the
of
quotations for
city
a trend that naturally was
easing
bonds,
on
disclosure of
tion to the previously
that
it
as
po¬
addi¬
large float¬
7" '7-7
ing supply.
Be
a
substantial
further
*
.
may,
•;
trade
the
anticipates
remittances to
the sterling area shall be made
from funds deposited in the Spe¬
British
inroad
cial Accounts.
the League of
7 7. Balances
credit
of
the
which
a
mandate
His Maj¬
esty's Government in the United
Kingdom or in any Dominion;
being
the Banco Central de Chile at the
Bank of England may, at the op¬
tion
of
the
Banco
Central
de
exercised
by
British Protectorate
any
protected state; and
Chile, be transferred in multiples
of £ 100,000 to a Special Account
"A." Amounts
tion Sudan and Iraq.
8.
in
In
the
London
the
of
price
balances
the credit of
any
of
gold
Special
Accounts shall be established
the
close
of
business
in
standing to
Chilean
the
change
on
the
as
at
day
preceding such change. The total
of the
Chilean Special Account
balances so established, deducting
therefrom
sterling
made in Chile but not yet liquid¬
ated in London, shall be adjusted
to
accord
any
with
sales
the
of
new
official
price of gold in London by credit
debit at
or
of
the
the
Bank
of
England
of the
Banco Central de Chile, as inter¬
mediary for the Chilean Special
Special
7
On
expiry of this Agreement:
The provisions of Clause
shall continue to apply to the
(a)
8
balances
held
on
Chilean
Spe¬
cial
Accounts; and
(b)
balances
remaining on
Chilean. Special Accounts shall
be utilized for the purposes laid
down
in
Anglo-Egyp.
,
Majesty's Government
United
Kingdom
the definition of the sterling area
in
force
said
the
for
apply
the
to
the sterling area
of
purposes
of the
regulations, such amendment
shall
this
definition
of
for the purposes
Agreement
as
from
the
date the notification to that effect
from the Bank
Banco
of England to the
de
Central
the latter.
Clause
5.
10.
Notwithstanding the forego¬
ing provisions of this Agreement,
a
hand.
on
material
made
been
in
Chile
reaches
•
the
7"
its
intention
bids
sealed
sider
June
to
21
con¬
on
an
offering of $15,754,000 bonds, au¬
thority for which was granted by
the voters at
an
election held
early in May.
required to
rate of interest of not more
will
Bidders
name a
from 1946 to 1984
Proceeds of the financing,
serially
ture
incl.
the
be
and the bonds will ma¬
than, 5%
largest single new
municipal
will be used
for
various municipal improve¬
ments ana projects. Although the
necessary manpower and mater¬
ials are not likely to be available
until some future date, city offi¬
cials decided to effect the borrow¬
issue
now
in prospect,
in order to profit by the
exceptionally
favorable market
conditions prevailing for such of¬
now
ferings.
Shaskan Go. Adds
7 Oakland, it is pointed, has al¬
exercised extreme prudence
matter of debt incurrence
current bonded debt ag¬
ways
Wallach and Shepard
Shaskan
Co.,
40
Exchange
New York City, members
Place,
New
&
Stock
York
nounce
that
Exchange,
Herman
K.
an¬
Wallach
in
and B.
J. Shepard, both formerly
associated
with
them.
the
gregate
of $6,299,735 is reported
to be
the lowest among the large
cities
of
11
Western States.
This
well for the suc¬
financing
excellent terms, with the pos¬
fact alone augurs
cess
oa
with Gruntal & Co., have become
the
and
of the forthcoming
sibility of a
iy2%,
coupon
rate or less
despite the rather
lengthy maturity schedule.
than
elections
Pennsylvania Rescinds
the
unissued
authorized
O.
Hoye, City Controller.
bonds, it is said, will not be
for
work
as
sale
can
until
be started
such
time
the
on
April 17 with
in the market
on
issue of $9,650,no
plans at
present for any further refunding
or sale of new issues.
000
an
refundings,
:;r"
77
has
7
07':
.'7-:
'7
(
7'
Ambrose
f
.v/J v.-/
previously
companion
such
issues
personal prop¬
his approval to
gave
from
a
absolving
county
any
erty tax.
The
,
Governor's
action, lonf
agitated for by the City of Philadelphia,
in
is
expected
to
result
saving to the city of $730,000 a year. The city, of its own
re¬
spective projects.
The city's De¬
partment Of Water and Power,
which appeared
Municipals
011
from the State's four-mill person¬
al
property tax, and
measure
bonds of the City of Los
Angeles,
Calif, according to a report from
offered
returning servicemen,
or
4-Mill Tax
con¬
a
volition, had assumed
of the
tax
its
on
enhance
to
payment
loans in order
their
attractiveness
in the market.
Ohio
Municipal Market
Change
Shows Little
Bids for high grade Ohio muni¬
cipalities held about unchanged
during the week ended May 31,
Compiled
M.
Smith, head of A.
while bids for lower grades were
Co., New
somewhat lower, it was reported
Orleans, has provided us with a
by J. A. White & Co., Cincinnati.
copy ot his analysis of the bonded
The firm's index for 10 high grade
debt of the State of Louisiana, its
Ohios held unchanged at 1.03%,
agencies and subdivisions as of
M,
Smith
Jan.
Investment
1945. According to this
direct and general obli¬
gations of the State were out¬
1,
source,
standing in the total amount of
$146,781,000 on the foregoing date.
This figure,
Mr. Smith reports,
represents a net increase of $7,the comparable ag¬
on Jan. 1, 1935, of $139,The compilation shows
the amount outstanding and the
type of each issue of State bonds
and indicates the specific reven¬
ues applicable to
the redemption
139,540
gregate
641,460.
over
finances
local
as
while
the
index
for
grades declined to
from
1.39%
the
lower
yield of 1.40%,
previous week.
a
the
The combined index showed
to
crease
1.21%
in
The
yield
a
the
31
101
for
little
Is
or
of
sale
from
would
$50,009
bonds,
Ohio
1947-1956,
1,
de¬
a
1.22%
previous week.
May
Zanesville,
May
of
due
virtually
at
to show
seem
reduction in bids for
no
high grade Ohios, the firm said.
New
Jersey Municipal
Debt Data Compiled
of the various loans.
Dealers
are
concerned, the compilation shows
for each parish in the State the
1940 U. S. Census population, 1944
City of Oakland, Calif., has
The
recent
Insofar
'
Oakland, Calif., Asks Bids
On $15,754,000 Issue
ing
Oct. 30, 1940.
dreds
the Mayor declared.
May 28 a bill exempting Penn¬
sylvania
municipal bond issues.
stocks
accumulation of
current
amend
Account
Accounts.
9.
the
in
the
Egypt,
Should His
official
the
(e)
transferred shall
event
has
announced
(d)
or
yield interest.
of
that
least,
at
mora¬
a
Nations has been
accepted by His Majesty and is
standing
to
the
Special Account of
so
behalf
on
time,
on
at
post-war
on
The $12,500,000 airport and
$10,000,000 sewer
bond
issues
ap¬
proved
stitute
It will constitute
important
Governor Edward Martin signed
Los Angeles Not Immediate
Market Candidate
Louisiana State and Local
such deals until such
Islands;
(c) any territory in respect of
debt.
Debt Figures
pre¬
This view finds support, for ex¬
tential
that
the
10,000,000-gallon stor¬
new
reservoir.
money
has had
viously outstanding loans.
accelerated
and
the
of
names,
offerings
in
torium
payments
ORLEANS, LA.
project,
providing employment for hun¬
the
in Govern¬
ment securities,
thereby offsetting
the required
carrying charges 011
The
hopefully
Control in London, to ensure
invest
not accompanied by any propor¬
(a) any Dominion,
.«
^
(b) 'any other part of His
Majesty's dominions outside the
all
of
issue proceeds for the pur¬
poses of issue, the city is expected
Dan
for this purpose
take all possible steps, in cooper¬
ation with the British Exchange
employment
bond
to
a
age
an
Pending
were
agreement the ex¬
pression "the sterling area" shall
have the meaning assigned to it
by the regulations in force in the
United Kingdom in regard to ex¬
change control, that is to say, the
United Kingdom of Great Britain
and Northern Ireland (including
the Isle of Man)
together with the following terri¬
tories, excluding Canada, New¬
foundland and Hongkong:
of
than
the
this
that
are
hope and expectation
of dealers, many of whom pres¬
ently find themselves with more
as
all details relative to its
as
past, the chances
a
desired
respite from
undertakings of that na¬
cent
which
by agreement
between the Bank of England and
the
409 CARONDELET BUILDING
earnest
or
terms of this
(b)
Mutual Life
John
the
the
payments
cial Accounts shall be used for the
through the
usual service bankers in respect
of public debt.
huge
other
in
payment of
Payments
resi¬
persons
the
respect of
goods exported from the ster¬
ling area to Chile or remit¬
dent
-
A.M.SMITH INVESTMENT CO.
Telephone WHitehall 3-6742
Municipal News & Notes
be used only
(a) payments to
arise
(a)
CO. INC.
NEW
With
12.
the commercial and
financial services in sterling of
Chile in the Sterling area such as:
&
40 Wall Street, New York
for:
than
7
information
Chilean
accounts may
Sterling amounts in the Spe¬
5.
TRIPP
Spe¬
cial Accounts would be
permitted.
Sums standing to the credit of
Chile
of
ment
from
further
77:77'''';7:77'7-;; Write to: 7
resident in
persons
sterling
Payments to Chile in respect
to the sale of nitrate and iodine
the
of
to which credits representing
income arising in the sterling area
outside the sterling area.
to
of 1938
area,
resident
person
any
Louisiana Bond Record
For
Chile but having close connections
with any territory in the
Sterling Area Account. A non¬
resident Account means the ac¬
count
7th War Loan
Sterling Area Accounts" in
names
1
♦
To
Kingdom to be denominated "Chi¬
non-resident
than a Chilean
other
Supplement
•,
accounts with banks in the United
be transferred to a
account
"
<
Consolidated
»
the Bank of England may authorize the opening or maintenance of
lean
4s."*V
'
New
assessment,
total
bonded
debt
(road, school, drainage, etc.,) at
Jan.
1, 1945, percent of debt to
valuation, average tax rate, per¬
cent of gross tax
collections in
1943 and per capita debt.
investors
and
Jersey
municipal
find
much
of
13th annual
&
in
bonds
New
should
practical value the
edition of
Ira
Haupt
Co.'s, statistical hand book for
New Jersey
data
Municipal bonds.
is all of the
therein
cluded
to
necessary
In¬
basic
quick evalu¬
a
ation of the financial condition of
showing
of
State
The
the
ten
Moody's
credit
1935-1945 indicate a
of
$10,876,766
for
de¬
the
unit
subdivisions
period,
the
overall
in
aggregate
to
The
$331,851,649.
Provo, Utah, Sells
sale
of
$1,000,000
&
Nuveen
Co., Chicago.
7 ;
provisions of the con¬
Under the
tract, the bonds will mature seri¬
ally in 25 years and bear interest
at a rate of 2%% for the first two
years
1943
and at V/2% thereafter. De¬
the
Other
community,
debt
a
of the issue will be
system,
used
municpal water
including construction
the
valuation
gross
net
and
last, etc.
disclose
tables
taxable
net
the
as
of
debt
the
1944
of
each
floating
debt,
as
of Dec. 31
Of particular interest is
section which indicates the per¬
centage ratio of assessed to actual
visions.
enlarge
1942,
shows
31, 1944.
agreement.
to
1941,
and
of levy and
at end of year
Dec.
valuations
ceeds
each
collection
each govcrnmenl
years
1944,
and
livery of the bonds must be made
within 60 days after date of the
Mayor Harding said that pro¬
its tax
percentages of taxes outstandinx
Provo,
Utah, water revenue bonds to a
group
composed of Edward L.
Burton Corp., Lincoln Ure & Co.,
both of Salt Lake City, and John
shows
for
latter statistics lists total
during
;7;7:77si,..
Press advices disclose the recent
nrivate
rating
as
tax levies for
$1,000,000 Issue Privately
munici¬
information
experience since 1941.
having declined from $342,728,415
well
as
and
counties
palities.
litical
years
State's
po¬
and
its
the
local
the
crease
Mr.
debt
compiled
by
trend* of
Figures
Smith
of
the
in
the
State's
In
of
case
political
connection
with
this
are
said
data, the figures shown
to be based on
many
subdi¬
information in the
files of Ira Haupt &
Co.
*
DIVIDEND NOTICES
DIVIDEND NOTICES
they tend to develop the type of
individual
that
backs his own
judgments and has the spirit of
enterprise
and venture.
In a
democracy small business, small
farming, and independent profes¬
sional life are important offsets
Company
i
•
CHEMICALS
<f
Preferred Dividend No.
Dividend
Common
No.
157
142
quarterly dividend of 750 per share
(lp2%) on the Preferred Stock for the
A
CELANESE
quarter ending June
dividend of 200 per
CORPORATION OF AMERICA
Stock
mon
Avenue, New York 16, N. Y.
180 Madison
dividends
rrHE Board of Directors has this
stock
day
Both
record
transfer
June -7,
ism
the
of $1.18-54
quarter
per
share, payable July 1, 1945 to hold¬
ers of record at the close of business
AMERICAN
June 18, 1945.
,'■/
;
,
"
,
COMMON STOCK
of 50
A dividend
able
cents per
1945
June 30,
to
a
declared on
I he
Preferred Slock of this Company, payable
July 2, 1945, to Stockholders of record at the
close of business June 14, 1945. Transfer Books
will remain open. Checks will be mailed.
one
the close of business June
at
18, 1945.
1945,
29,
May
On
of $1.75 per share,
payable July 1, 1945 to holders of
the current quarter
record
*
quarterly dividend of
STOCK
PREFERRED
regular quarterly dividend for
The
company
can
SECOND PREFERRED STOCK
7%
and three-quarters per cent was
Secretary.
R. A. BURGER,
share, pay¬
holders of
of business June
record at the close
COMPANY
THE TEXAS
Dividend paid
c us
The Texas Company an
171st Consecutive
by
predecessor.
& Company
A dividend
total
1945,
This phenomenon would be
gratifying
if
the
environment
could assure that the new business
births would not be offset by a
ployed in enterprises having less
than 50 workers-each, which was
of
1943,
the
less-than-50-worker
'
declined
Treasurer
CORPORATION
DIVIDEND NO. 61
self
ot
E.
Quarterly Dividend
Accumulated Surplus of the Company a
r
share
to
dose
of
stockholders of record
business
lune
on
-the
ai
11,
1945.
Creeks will be mailed.:
14. C.
15,
ALLAN.
Is hereby
1945.
H.
E.
BACH,
Treasurer.
Secretary and Treasurer
Philadelphia 32, June 1, 194 5
Plans for
has
Announcement
that
OF AMERICA
made
been
inter-Allied control coun¬
an
Dividend
on
Firs! Preferred Stock
The Directors have declared, for the
period April 1, 1945 to June 30, 1945,
a
dividend of
the
on
87Vi cents
share
outstanding $3.50 Cumulative
Preferred
First
per
Stock, payable July
small enterprise.,
June 11, 1945.
York, N. Y., June 1, 1945
TOPEKA
YTCHISON,
RAILWAY
FE
The
a
AND
The Board of Directors has this day declared
dividend of
Two
Dollars
and
Fifty Cents
share, being Dividend No. 93, on the
Capital Stock of this Company, pay¬
L,
1945,
out of
undivided
net
profits for the year ending June 30. 1945, to
holders of raid Preferred Capital Stock regis¬
tered
on
the books of
the
Company at the
(S2.5J)
pjr
Preferred
able
Augu.t
close of
business
Dividend
June 29.
checks
will
French, Gen.
mailed
to holders
of
D.
i
C. WILSON. Assistant Treasurer,
120 IL'ctuway. New York 5. N. Y.
%■
*
Such
toric
mark
L
N
■i
The B^ard of
I
w
York.
June
has
declared
Dirrctors
6,
bn^inp-'
.June
13,
MATTHEW T.
Jean de
quar¬
many
the
first
-
ways.
Lattre de
It
be his¬
would
meeting of
his
with
Gen.
Russian
counterpart. It also would be
time
the military
the four powers
the
leaders of
had met personal¬
What, then, is the* small busi¬
problem? The basis of the
problem, it seems to me, is not
financial, but technological. Over
the years, machines have become
far
more
far
more
The
costly.
hence
and
productive
mass
in
Washington.
type
and again,
and
prewar
taxed
under the personal in¬
come
tax, when distributed in the
The
personal income tax!
resulting discrimination
any
on
query
a
standards, market opportunities,
etc.
The central bureau would, in
against income from equity cap¬
ital is serious, particularly for the
small enterprise which needs new
and indus¬
effect, do for business
try what the Department of Agri¬
culture does for agriculture.
Problem
Taxation
The
II.
second," and perhaps the
important, approach to the
small business problem is in the
tax
field.
The
tax
structure
should be revised so that, in ef¬
The
most
will put
it
fect,
premium on
a
invested
and
penalty on funds that are
a
in
ventures
funds
new
for
put into
existing ventures
speculative capital gains.
greatly encourage
small business after the war is
ended would be, first, to reduce
the excess profits tax from the
What
would
to, pos¬
the cor¬
present 95% maximum
sibly, 65%, and to make
instead of
poration tax, say, 25%,
surtax.
Secondly, to exempt from the
25% corporate tax all profits paid
out in dividends which would be
40%
it is now with the
as
difficult to start
have meant
a
business.
requirements
capital
higher
higher overhead costs
charges.
The higher
and
fixed
costs
have required a larger vol¬
of business and broader mar¬
ume
This, in turn, has increased
sales
costs
and
required larger
amounts of working capital.
In¬
funds
have
preferred
the enterprises with the broadest
market
It would also
the. desirable effect of in¬
ducing
corporations
rather
than
base
in
order
to
reduce
of Small Business
like
to
of
case
large corporation, but it
a
would be
the
tremendous benefit to
a
concerns.
discuss
third, from the standpoint of sup¬
plying credit and capital.
*
capital.
Numerous schemes have
been proposed to give tax relief
to equity capital.
I should prefer
to
give the relief at the corporate
level, and exclude from taxable
income
such
part of corporate
(or a fraction thereof)
profits
am
in accord with the recent
proposals of the Joint Committee
Internal
for
The
gram
means
Technological Approach
first
item
in
such
a
pro¬
would
be to provide
a
for placing small business
in closer touch with modern tech¬
and, in general, with the
oratories,
some
2,200 in number,
Taxation
Revenue
This
dends.
credit
tax
of
the
care
-
distribution of dividends.
the
for
>
it would be
simpler than some
Also,
been
sug¬
To protect small corpora¬
tions in need of funds for capital
gested.
expansion, it might be < well to
provide
that
some
minimum
amount of retained income, say
receive the same favor¬
$50,000,
treatment
tax
able
distributed
to
that
as
given
profits.
Adequate provision for carry¬
of lqs$es is also vitally im¬
over
portant
the
to
not
small
corporation
in
position
a
a
to
wide va¬
of products and markets
is, therefore, more likely to
have a fluctuating income.
If a
five or six-year period for the
riety
and
carry-forward
of. losses is al¬
lowed, combined perhaps with a
two-year carry-back period, this
of-
disadvantage
the
firm
small
will be reduced.
.
'
-
}
of truly small
business units, however, are un-;;
incorporated. Their tax problem,
therefore, is under the personal,
rather than the corporation, in¬
come tax.
From a social point of
view,
which
specific
exemption
profits tax from
*
(leal
other
good
a
of the
have
which
methods
raising
excess
would
problem of
double taxation and, in addition,
would exert a healthy pressure
take
and the- Treasury Department for
the
as
is distributed in the form of divi¬
The
•
(1) Excess Profits Tax
I
great
mass
these
it
the- very'- units
.important to
are
is
encourage.
most
But at the same time
problems of providing encouragement under the per¬
This will re¬
duce the number of excess profits
tax
paying corporations greatly
the technical
and
complex and difficult of solution.
$10,000 to $25,000.
will
do
much
vestment
in
the
unit
small
render
smaller
the
in¬
will
accelerated
in
profit
carry-oacK
provisions in¬
Committee's pro¬
the
posal.
will
be
ment,
a
but
sider
the
to
satisfactory
arrange¬
be
shall
There
is
done
tendency
a
discussions to
con¬
profits tax
discarded
will
but
be
as
a
I dis¬
help¬
give all
not
to
the
corporations
profits.Elimination
with .excess
the
possible and
should
we
the- benefit
excess
profits tax, while
retaining corporation income tax
rates at their present
the
those
greatest
who
would
be
need
a
tax
level, would
tax
it
relief
least.
to
This
differential
un¬
favorable to the weakest
corpora¬
tions.
It
are
most
the
III.
The
Financial
Problem
Undoubtedly, there is a lack of •
an adequate mechanism today for
providing equity capital for the
smaller ventures.
The exemption
SEC
requirements for fi¬
nancing up to $300,000 should be
of help to the smaller concerns in
obtaining equity capital.
How¬
ever, even with this exemption,
costs of new financing will still
be high on small flotations.
should not be
forgotten that
excess
years
of the
its of
profits
will
war
in
be
as
today.
as
are
I
the
next
direct
few
result
see
no
justi-
Investment
Asso¬
Bankers
ciation has presented a plan which
is directed toward filling a gap
in
our
The
investment
local
institutions.
company,
investment
directed by local business
leaders
locally administered, is the
best replacement for the individ-
and
:
investor, and unquestionably
any central or largescale
investing institution, pri¬
vate
or
governmental. Local
business leaders know their lo¬
ual
better than
calities
and
the
enterprises
them,, and community
is
to
a
force that should
iP
patriotism
be brought
."
bear.
,
also
sound Hj
clearly recognizing that additional
funds will also be needed, by suc&
The
a
the-excess prof¬
can
The
immediately,
Some reduction in business
agree.
of
this
what
excess
be
war
the last shot is fired.
taxes
ful,
tax
from
For the duration of the
once
income
,
-
business
amortization
cluded
sonal
Similarly,
corporations
from
and
to
attractive.
more
give
The
medium-sized
and
smaller
tax
briefly
the
problem of small business
from three general aspects; first,
from the standpoint of technolog¬
ical
and
managerial assistance;
second, from the standpoint of ad¬
justing the tax
structure;
and
I.
profits.
of little moment in the
would be
in current tax
Three Approaches to the Problem
should
out
pay
to give an exemption of
$25,000 to all corporations under
the
excess
profits
tax.,
This
thereafter?
the risk.
I
to
retain
to
Third,
under the
higher capital requirement
has had the effect of making it
more
in the hands
taxed
of
been
nology
•
.
capital is
under the corporation income tax
pro¬
machinery has
greatly developed and ap¬
plied. As a result of these trends,
the minimum capital requirement
for successful operation- in nearly
ail fields of enterprise has greatly
ducing
mutual problems. best
management information and
Previously negotiations had been technics of every type. The big
carried out by joint chiefs of staff organizations have their own lab¬
ly to confer on
19^5.
MURRAY, JR., Secretary.
the
and
meeting would
a
1945.
a
terly dividend of Three Dollars ($3.) per share
on
the Cartel Stock of this Company for the
quarter ending June 30. 1.945, payable on Julv
2, 3945, to .stockholders of record at the close
of
in
Eisenhower
first
GUARANTY TRUST COMPANY OF NEW YORK
Field
British,
Tassigny.
1945.
be
Capital Stock who have filed suitable
therefor at this office.
would be Gen.
Montgomery,
Marshal
Preferred
orders
the
Eisenhower;
COMPANY
York, May 28, 1945.
New
Marshal
victor of Ber¬
American representative,
the broadcast said,
SANTA
the
Gregory K. Zhukov,
lin.
HIE
that the
on
be
would
commission
GEORGE S. DE SOUSA
'>;
representative
Russian
..j-Vice-President and Treasurer
New
Problem
vestment
The announcement said
2, 1945 to holders of record at the
close of business
•
Technological Basis of the
kets.
in Berlin.
present
equity
its risks over
Paris, May 31, adding that
it is anticipated that headquarters
for the council will probably be
up
Under
practice,
spread
The
set
losses
importance to
particular
have
will meet shortly,
and this is taken to indicate that
the four Powers have agreed on
zones
of occupation of Germany,
the
Associated
Press
reported
from
cor¬
treat¬
of
the small corporations.
is
This
cil for Germany
the
and
which
increased.
Occupation Forming
CORPORATION
RADIO
Germany's
of
are
tax,
ductive enterprise.
enterprise; or full employ¬
Nation, unless condi¬
tions are made favorable for the
ness
given that a dividend at the
rate of $.50 per share on the issued and out¬
standing
shares
without par value of the
Common Stock of Western Tablet & Station¬
ery
Corporation
has
been
declared payable
on
June 30, 1943. to the holders of record of
such shares at tne close of business on June
Notice
the Common Stock, payable June 30,
19 .5.
NOTICE
TABLET & STATIONERY
CORPORATION
WESTERN
income
dividends
of
ment in the
individual¬
hope
OLDENBURG, Treasurer.
DIVIDEND
the
smaller
adjustments
ism in
for
restoration of
hardly
Tulsa, Oklahoma, June 1, 1945.
The Directors have declared from
per
D.
to
that I
the
of the recip¬
ients.
This
would
avoid
the
double taxation that is so great a
deterrent to the investor in pro¬
and we
either the
basic respects,
certain
1945.
179th Consecutive
concerns
by
will tend to rectify it¬
are
favorable.
conditions are not favorable
desired
MARGAY
OIL
declared a
dividend of twenty-five cents a share on the
outstanding stock of
the corporation of the
issue of 160,000 shares provided by amendment
to the certificate of incorporation of April 27,
1926,
payable July 10,
1945, to stockholders
of
record at
the
close of business June 20,
company
employment in
conditions
if
can
,
Directors of the
CORPORATION has this day
The Electric Storage Battery
to
1939
1.7%, whereas em¬
ployment in the more than 1,000worker enterprises increased by
95%.
This
wartime
distortion,
But
Board
From
however,
L.H. LlNDEMAN
•
..
(1,50)
the total employ¬
all concerns having 1,000
end
May 25,1945'
RASKOB, Secretary
cents
is
important to employment. In 1939
eight million wage earners and
two million proprietors were em¬
the
MARGAY OIL
on
particular, small business
in
send
day.
value of the shares
stockholders of record as shown
to
management of¬
to write
reliable type of in¬
place should be estab¬
lished within the Government, to
which
the small business
may
2,938,400 last September, and
undoubtedly exceeds 3,000,000 to¬
more.
on par
for
various
poration
A central
was
or
The Texas
benefits
mentioned
ment
formation.
in September, 1941, to
in December, 1943, the
number of business firms
ment in
by the books of the company at the close
of business on June 8, 1945. The
stock transfer books will remain open.
1945.
dividend of fiftv
disappeared dur¬
v/orkers
Company has been de¬
clared this day, payable on July 2,
of
Tlie
h'f
small
Many
tax
profits
impossible
that need to be made in the
know where
the most
for
3,398,000
2,840,000
in
;' .'i
but its
' 1
of 50.0 per share or two per
(2%)
cent
1945
The Board of Directors lias declared this day a
dividend of $1,12J4 e .share on the outstandinj?
Preferred Stock, payable July 25.
1945, to
stockholders of record at the close of business on
Tulv 10 1945; also $1.25 a share, as the second
interim'dividend for 1945, on the outstand¬
ing Common Stock, payable June 14,,1945, to
stockholders of record at the close of business
Delaware: May 21,
W. F.
services,
ten does not
about equal to
Nemours
E. I. du Pont de
May 28,
de¬
excess
it
problem form of dividends. Income
from
connected with management, such
fixed debt forms,
on
the other
as
technological
or
production
hand, is not taxed at the corporate
number
of
business births
has problems, sources of materials, use level, interest payments to bond¬
exceeded the number of discon¬ of by-products, methods of per¬ holders
being
taxed
but
once,
tinuances.
After dropping from sonnel administration, accounting under the
In
JOHN A. LARK1N,
Vice-Pres.
Sec'y.
on
business
marketing experts and
only is the small
unable to support such
Not
staffs.
the
Among
nomic and
the
(2) Corporation Income Tax
<
their own eco¬
have
also
nesses
rise in business deaths.
18, 1945.
Wilmington,
of
and more
demobilization
proceeds. This process is already
underway; since May, 1944, the
regular quarterly dividend for
current
enterprises,/.-
in
will be founded as
91.75 SERIES
The
have
of
ing this war will revive,
Secretary
1945
that
businesses
J. P. Treadwell, Jr.
May 23,
FIRST PREFERRED STOCK
provide
enterprise has tre¬
vitality.
mendous
bookp will remain open.
1 declared the following dividends:
1 -
.
This txpe of
The
1945.
companies and associa¬
the major portions
their industries 3re constantly
touch with the National Bureau
Standards.:1 The larger busi¬
of
make
tions covering
pends upon the maintenance of an
adequate amount of individual¬
payable July 2, 1945, to
will
tax
and large
be, in the
analysis, that democracy
last
1945, and a
on the Com¬
declared.
been
have
are
of
holders
30,
share
big enterprise. It may
to
elimination
2503)
(Continued from page
Bank Note
fication^for fairing to tax those'
war
profits then, "as.now,
Be
yond
that,
however/ complete-
Aiding Small Business
A Plan for
American
Thursday, June 7, 1945"
CHRONICLE
COMMERCIAL & FINANCIAL
THE
plan
is
local investment
companies, if
the
;
Number 4392
161
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Tomorrow's Markets
Over-the-Counter Quotation Services
Walter
FOR SECURITY DEALERS AND
Whyte Says—
almost
FINANCIAL INSTITUTIONS
non-existant.
middle of last
Call
Write for Free Trial
or
| NATIONAL QUOTATION
*
the group
*
BUREAU, Inc.
Street, New York 4, N. Y.
Chicago
But business, industry,
properly done.
job is to be
there
San Francisco
.
individuals
other features of the
plan that are less convinc¬
The
required additional
are
IBA
ing.
funds
they
in
agriculture and
the
communities
Where
serve.
oppressive
and restrictive regulations beyond
those required for public
under this plan would be
borrowed direct by sale of de¬
bentures to the Federal Reserve
protec¬
lending in¬
stitutions, they need to be liberal¬
tion
cripple
ized
Banks, whereas it seems to me
that the private investment mar¬
private
and amended
in
the
light of
modern needs and conditions.
ket, or such pools of private cap¬
ital as the credit pools recently
formed " by
commercial
banks
Some
has
progress
been
In
made
Corporation
the
Common Stock
April, however,
a sudden shot
got
in the
arm
and moved up
about
30.
A
to
Prospectus upon request
two-point ad¬
vance
is nothing to get ex¬
cited about, but
considering
the utilities lack of action,
even
this move was import¬
ant. From mid-April until last
Established 1913
46 Front
Resistoflex
(Continued from page 2506)
Herrick,Waddell
Co., Inc.
&
55 LIBERTY STREET, NEW YORK 5, N. Y.
week
the utilities again did
nothing. Yet they kept the
gains. Last Tuesday (May 29)
the utilities moved up about
.30.
Thursday they reacted
.39.
The Securities Salesman's Comer
By JOHN BUTTON
Information Is Valuable
It is the reaction rather
To Your Best
than the
rally which became
important.
It established a
There
your
is
old
an
but
true
—
Use It
Advantage!
saying that
the
price
put upon
you
abilities will result in the valuation the world will place
own
direction, notably in the swing or a pendulum which upon your worth. Carry this a bit farther and you will find that it
revision of bank examination pol¬ up to then was absent in the is likewise a certainty that the valuable information that comes to
throughout
the
United States, icy in 1938. The revised
proced¬ group.
On June 1 (Friday) you from day to.day, regarding the various securities which you are
would
be
a
more
appropriate
ure,-under which appraisals of the
pendulum
action of the following, the economic changes that are going on in the world of
•source.
r
bank assets are
to
worth rather than
be
current
for this
because there should be
purpose
no
all
man¬
and
credit
over-all
values," has been
states.
carried
If
out
There
should
liberalized
here.
other
some
theless,
features
the
them
discuss
to
"
,
„
_
Turning to the credit problem
it affects small business, I feel
that it should be clearly
of
conceived
of stimulating
the flow
to small busi¬
ness, as opposed to direct govern¬
mental lending.
The great major¬
ity of a all banks are themselves
small businesses, and Government
should encourage them, not com¬
pete with them in the lending
as
of
one
private
made
without
them
i
Many small businesses which are
in
of
credit,
have satisfactory short-term cred¬
it
relations
with
their
banks,
need
for
them
exists.
long-term
no
credit
problem
The
bring
problem is how to
commercial bank loan
the
iurther
the
into
over
area
of the
marginal credit risk, particularly
for long-term credit.
The
reliance
As in the V and
T loans, the
fee
the lending banks would
for the 'guarantee would in¬
crease with the percentage of the
loan
guaranteed.
ducement
banks to
risk
of credit
dollars
would
It
new.
was
an
out¬
growth of the credit plan adopted
by Congress in 1934 in adding sec¬
Act.
That
Federal
narrow
Federal
the
to
Reserve
legislation authorized
Banks,
under
Reserve
make di¬
restrictions, to
loans to business and
indus¬
try, participating,
however, with
local banks wherever possible in
these loans and commitments.
The Wagner-Spence
Bill, which
Banking and
Currency Committees, would carry
is pending before the
into the reconversion period
mit
This would per¬
of one-half billion
.loaned through this
While it is my opinion
to
I stress
reason
action is its effect
utility
the rest
on
Last April
moved out of
its narrow range, the other
averages,
rails and indus¬
trials, subsequently moved up
of
market.
the
when the group
about five and ten
points
re¬
spectively. Naturally the con¬
ditions then are no
longer
present today. But the action
is so similar that a parallel is
be
tions, unfamiliar
ditions,
are
a
matter.
which
aid
has
successfully in FHA
financing and in the so-called V
loaning operations for war
production and for transitional
re¬
conversion purposes.
banks
can
with local con¬
very
different
be
justification for giving
no
Government
of
small
relied
upon
credit to com¬
existing
estab¬
and
businesses who have
private
credit
and
compete against
what in effect would be governwho
subsidized
mentally
in
not
could
newcomers
the field.
is not indicative
it
fruition.
immediate
(Continued
on page
of
There
2528)
mental
of
setting
or
ment
so
or,
to
tions,
up
govern¬
lending agencies financed
out of taxes
other
>
as
deficits to supple¬
often
happens
in
with banks or
lending
institu¬
be far better, if
compete
private
it would
varied
free enter¬
to
function
in meeting the
changing
needs of
effectively
and
to
war
subcontractors.
veloped to finance contract can¬
cellation pending
settlement by
be
the
When
Government.
settle¬
the money has to
applied to the T loans, and
Army, Navy and Maritime
have
no
further
au¬
thority
with which they are
be
the
familiar, and
of
of
to
industry.
our
the
extensive
can
render to your
gathering services
news
that
especially
business
by
enterprises
to
smaller
we
fee
for
so
it
it's
—
INFORMATION
TIGE
IN
THE
MAKING
EYES
OF
business.
our
BUT
WE
T
loans.
Contractors
possession of surplus property
would be able to negotiate for
in
purchase at the time of contract
settlement, thus avoiding delay,
expense and other complications
that would arise if the property
had to be removed and disposed
elsewhere.
It
would be
most
and
propriate
cies.
As
disposed
surplus
you
of by the ap¬
disposal
know,
the
Summary
The
small
V-loan
be
business
program
three-fold—making
available technological and mana¬
agen-, gerial
business
CAN
HANDLE
WAY AS TO BUILD UP OUR PRES¬
OUR
CUSTOMERS.
We
this
do
can
BY
IMPORTANT.
leaf from the doctor's book—or the way a successful
his stock in trade (information).
After all, what
a
handles
they sell?
of
part
IN SUCH A
"NEWS"
Let's take
lawyer
he
back.
do
INFORMATION!
You
then?
chances
to
go
Does
he
he
a
You get a sprain
doctor.
give
knows
the
you
what's
He hears
in the muscles of
story. Wh^t
right off the bat?
information
can
readily
that
use;
small
read-
does
your
answer
The
the
matter with you as soon as he
But he looks you over, asks you to '; M and
twist, and possibly he even gets out the stethoscope and the bloodare
sits you in his chair.
gadget and puts
through the motions of
you
Then he looks at you rather
an
gravely, tells you not to
examination.
hauls
tape, straps you up, gives you some pills 'that he
tells you will ease the pain) and after all this
build-up he tells you
you've got something with a fancy name called contusion
When
you pay him — you feel like you've got your money's worth.
As
for lawyers — if all the rig-a-ma-role that has been wri ten
worry,
the adhesive
out
.
intoj
the law books (just to make it tough for the customers r»d
easy*
for the lawyers) were put into one volume, that book would be as
thick as the Empire State Building is tall — and just as
unintelligible
as
it was thick.
But lawyers and doctors make their
living
of
"selling information,
The next time
ANSWER
MENT,
THE
JUST
OR
They've got it down to
customer asks you a
a
GOING
B.Y
BY
THE
MANUALS
IN
TO
SIMPLE
YOUR
out
science.
question THAT YOU CAN
YOUR
STATISTICAL
PROCESS
OFFICE,
a
OF
DEPART¬
LOOKING
REMEMBER
THAT
INTO
WHAT
IS A SIMPLE MATTER FOR YOU ISN'T SO EASY FOR HIM. He
isn't in the securities business — the chances are 100 to 1 that he
wouldn't know where to go to get the answer unless he came to
you,
to
or
else in the business.
someone
This is the time to let him
know
that the service he receives from
doing business with you is VALU*
ABLE. Don't jump to the telephone and rattle off
your answer L
a
casual, matter of fact way. Remember, that infers to him thai
this is something of no consequence which
you do for the public
may times a day.
Tell him you are going to check it up.
Build
up the importance of correct information and put a plug in there
for
firm and your "fact finding" facilities.
Let him knowregarding every inquiry of this nature it is important to
firm that the latest and most correct advices on the subject
your
that
in
your
are
carefully checked before such information is disclosed.
Tf
wait a day or two.
Then make your telephone ca'1
safeguarded as it has been in
should
a
a class by itself — hardly another line t
easiness
much FREE INFORMATION as the securities industry.
This all adds up to one conclusion and that
is, "something which
get for nothing is rarely appreciated." Well, we canT _arge a
gives out
write
acquire
for
YOUR CLIENTS WHICH THEY CANNOT SECURE THEMSELVES.
ffood letter.
a
GET SOMETHING
WELFARE
PLACE
it bunk
wish
—
FROM
YOU
—
THEIR
—
as
well
lawyers
—
BELIEVE
THAT IS
THEIR
dressing
YOU
—
who
as
—
and
upon
a
AND
call it any
AND
YOUR
name
are
"human nature."
the
politicians
so
as
favor
V-loan
mechanism
banking
pos¬
or
CAU
^HEIR
WILL
FIRM
Call
that yen
may
—
system
to
to
enable
extend
—
r'octc-s
they all have something
render
mental
It
wea*-
Securities don't
that's why we need security salesmen
even
successful not only
particularly the smaller
enterprises; and continuance of
the
TO
THEY
fundamental appreciation of the
the strengths in
justment of the tax system
to
THE^r
IMPORTANT
SALESMAN
IN
THAT
SELLING!
sell themselves
—
YOU
ARE
call it window
ITS
PEOPLE
CONFIDENCE
Selling is based
nesses
WHEN
posal of surplus property, and in
meeting credit needs, particularly
of small business, after the war.
needed
Rea
This service is in-
bridging the gap between
(T) loans and those
termination
client®^
available
are
Consider the cost of these services.
they also know how TO MAKE OTHERS LIKE IT!
riod by
OF
moment the value of this priceless information that
your firm is
securing (at considerable expense—and for what purpose? To make
it possible for you as a salesman TO RENDER A SE^ k CE TO
sible,
and
odST AS
as you
of the most valuable services you
one
Think
would
Government's interest
V
that
news
BE
CLIENTELE
A
wish to make it.
It all depends upon how you disseminate this information to
your customers. If you scatter this information abroad — hand it out
indiscriminately — make it easy to get — you cheapen toe worth
is made,
Commission
the
world—CAN
KEEPING
lapse.
It can be most effective in
facilitating reconversion, in dis¬
Wagner-Spence Bill, if en¬
over
institutions
a
and
banks
Similarly, the T program was de¬
the
CLIENTS,
the
over
AND
acted, would serve an all impor¬
tant need in the reconversion pe¬
The
similar
more
preserve
private
contractors
ment
all
sources
BUILDING
Those
plant, machinery, inventory, etc.,
that' otherwise
would be taken
to
Army, Navy and Maritime Comin war production loans
mission
by
IN
unfortunate to let this mechanism
prise system, to aid the banks and
are
SATISFIED
pressure
program
enabled
the Reserve
Banks to act as guarantors for the
made
from
you
EFFECTIVE
,
though the parallel is
there
of
'
Instead
to
comes
your
Yet
to
It^ is obvious that there
lished
governmental
local
by
business, and the extensive flow of financial and political
do
indicated.
people whom,they know and with
of
we
half dozen
a
utility stocks.
local I government-owned
plant,
ma¬
chinery, inventory, etc., would be
whose character* capacity and re¬ enabled to finance such purchases
liability they would be familiar. through the same channels using
Loans
by governmental institu¬ the same guarantee
mechanism
made
petitors
fact,
in the action of
whereby loans that will
then be needed, to finance pur¬
amount of credit that would be
chase of surplus property could
needed
by small business after be
guaranteed.
The
Wagnerthe war are exaggerated, to the
Spence Bill would supply this de¬
extent that the need does exist,
ficiency and would facilitate and
this mechanism would go far to
simplify disposal of surplus prop¬
meet it.
/ /-f'v';
erty.
War contractors and sub¬
The loans, of course, would be contractors
desiring to acquire
Congress, this guarantee principle
so
the
the
upwards
easy
and T
of
as
and, specifically, until the end of
1949, unless further extended by
worked out
for
much
they
felt they safely,
could. No appropriation would be
required from Congress, since the
fund originally
provided under,
section 13b, amounting to approxi¬
mately $139,000,000 derived from
the
gold increment,
would be
war
a
ihe problem.
13b
exist
as
in¬
logical answer to mechanism.
The idea was by that many of the estimates of the
production, is
means
for
the
Hence
assume
dollars
over
of the
which
lions of
rect
the
much the better.
or
marginal risk
loans, a guarantee in part, that is,
up to 99%,i,would be available.
made available.
tion
upon
so
borderline
technique of the so-called
V-loan, which has provided bil¬
no
for
guarantee,
For
May 29. This breaking out
long rut became visible
on
pay
field.
and
be
provision
would be made by private banks.
To the extent that the banks made
credit
'
not
of
Never¬
encouraging
the flow of local bank credit by
a mechanism such as is provided
in the Wagner-Spence Bill.
This
measure would repeal the restric¬
tive provisions of 13b.
The loans
-
as
authority
Banks to lend
institutions.
additional
should
plan which I think
modified, but I shall
*;
member
confirmed when
was
the average advanced .45, or
.06 above the 31.39 top made
The
,
are
be
in
Similarly, i the Banking Act of
1935
to
undertake
not
not
utilities
monetary
IBA
the
of
has
adequately
ttQ be supported by private funds, the Federal Reserve
a Government appropriation will
be necessary.
it
habits die hard.
Hence, if the plan is not
policy.
fluctuating
practice, it is largely because old
conflict with
might
which
the
of
been
datory requirement for their cre¬
ation
market
intrinsic
on
on
adopted in principle by the three
Federal bank supervisory author¬
ities and by those of practically
as
appropriate
that
based
plan
not
Wagner-Spence
I hope it will
Reserve funds are
if
Federal
be.
not
would
use
the
enacted,
is
Bill
IBA
the
that
.funds
The
proposes
available
in
is
a
worthwhile
sell.
service
—
interest in small b'^'n^ss.
an
economic
fact
that
the
backbone of this Nation h*u been
the small enterpriser and that our
economic system and
its
entire
credit.
survival
Nothing that I have said is in¬
tended to reflect a mere senti¬
individual,- not
prise.
depend
uoon
fostering
collective, enter¬
THE COMMERCIAL
2528
and staff regulations, including living detail?
be drafted
. The Commission will find
it necessary to draft a budget, whicli* theans anticipating the activi
on
ties of the new League that will subsequently occur after its found
ing.-... It must lay out the framework of its activities, and the
financing provisions. ... In the latter regard.it seems almost certain
to follow the League technique. . . ." Expenses were shared on the
'(Continued from first page)
,
ability to pay principal, arrived at by consultation rather than by
ership is surely being frustrated by the still unresolved disagreements any statistical formula. . . •
• <
*'
/.
over Argentina, Poland, and the Levant. . . . '
■ ;
V
\
t
The financing of the Preparatory- Commission in the interim
Z"t
7
* •; V" .*_"•# * *
period will be done in one of the two following ways:
•.-* /, *
77;7 (1) By the-' countries chipping in concurrently; as after Hot
The sudden impact of the Syria-Lebanon affair on the Confer¬
Springs with the Food and Agriculture Commission. ??. . - The U. s*
ence seemed to make its elaborate deliberations highly academic. . . .
of procedures
Rules
Whyte Says—
(Continued from page 2527)
other
are
signals of
im¬
more
importance
that
seem
to
claim precedence.
The industrials which, last
week and the week before,
mediate
beginning to show evidences
\i
7
base at 164, are now
barrier in the region of
showed
of
a
a
well
170-172.' So far they are
of pay, must
and grades
Economic
Conference Works
Walter
Thursday, June 7, 1945
CHRONICLE
& FINANCIAL
-
.
,
•
,
'
As
member of the
a
new
with a Congressional appropriation.
contribution was made
Great Britain
World Organization, would
.
.
...
lay out the monies, and collect after-
(2) The host country can
ward,
«
1' ''
differently; would she have waited to consult League
machinery in lieu of direct dealings with France? . % ; And every¬
one here recognizes the fact that the World Organization would be
have acted any
-
;
77'-:-7-77
'
.• •
,
for this Commission
only drafting terms of agreement
for subsequently bringing into the new League the affiliated organi¬
one
zations, such as the International Labor Office, the Bretton Woods
This highlighting of the vital veto issue through the Near East
tion by the leaders and they
Fund and Bank, the Food and Agriculture Agency, etc. 7
Such
will be right in the midst of events, coupled with the intransigent Soviet attitude toward the
draft agreements must be worked out, and later presented by the new
formula in the new Charter is quite understandably making Mr. John
that f^nge. I might point out,
Public a sophisticated cynic.
For until the past few days he League's Economic and Social Council to the Assembly for its ap¬
Only the intergovernmental agencies, as those specified
however, that the latter ob¬ did not realize that a Big-Five Power can prevent concerted League proval.
stacle seems to be of minor action against its aggression.
On street corner and in hotel above, will require agreements; the non-governmental bodies, like
the Chamber of Commerce and specialized agencies, will be brought
importance. The utility sig¬ lobby, in bar and in barber shop, the argument, vehemently rages in informally and frequently as ad hoc participants. . . .
as to
where the veto prerogative really should be exercised; about
nal, or} the other hand, seems
V
*
*
v".7
alleged basic unreconciable differences between the American and 7V7:.. ../:iv.'"'■'.;-77-;' ,77.. 77,- -7to be of intermediate if not Russian
souls, and guesses about what Uncle Joe has up his sleeve
There are several knotty legal questions involved in the taking
of major importance.
next.
And the controversy has been further dramatized by the
over from the existing League of Nations:
A short run indication can flight of Harry Hopkins to" Moscow and supposedly bypassing of
(1) Who owns the buildings and the archives—the League of
from those levels but
ors two days of strong ac¬
away
it did not like.
its actions
important and difficult tasks
of the
One
of
France's vetoing of almost any
estopped from effective action by
and necessarily
be drafting
will
....
.
.
.
.
.
.
.
,
.
.
.
...
the industrials
points. It may
however carry
down about 5
be
if the
only three points
is
170-172
But
reached first.
not
reaction, no matter
how minor, is a reason for ab¬
stention. So despite the long
any
term (positive
indication I
prefer to follow the short
term signal.
> '
Where stocks held are con¬
I
cerned the advice to maintain
I
You
repeated.
is
positions
have Jones &
!'
If)
id
Laughlin at 29,
now
about 34. Keep stop at
30. ;lXi S. Rubber at 56, cur¬
rently about 59, stop remains
at 57. U. S. Steel bought at 56,
is now about 69, stop is still
Gromyko here.
No additional stocks will be
recommended until the long
;
•7
)
,
t'L''
|„77
ranjfe influences become dom¬
tions
disappear or the setback
occurs.
'
\
#
*
di,
\
More next
''f'
'*'
l
;■
indica¬
the short run
inant,
.?»•
*.
*
Thursday.
'.7
•
.7,
.
-7
'
■
.
...
.
limiting
Generally
(1)
the
includes
membership
indicating the nossibility of thus deviously using
Established
to.
1856
H. Hentz & Co.
>\i
,v
'
N«w
York
Stock
Exchang#
New
York
Curb
Exchange
New
V
V
York-
Commodity
:"°'Chicago
New
U/
'
.
ji
,
,i
Orleans
Cotton
.
v
*'£-
'
/)7;7i
7;-
>
'',7-''->'7-
•
-
•
providing machinery to function during the
—will
also
of
,
-
And other Exchanges
extended
.
:
encroaching on the new Organi¬
prerogative before it has been legally ratified by the Amer¬
,
;
..
7
■
■
*
*
'
*
*
Bldg.
YORK 4,
N. Y.
DETROIT
PITTSBURGH
inter¬
...
7
..
'■<■
#
■■..
'
:
7''
■
-7-
•;
•'
.
•
..
-
'
:
tariat of the new League. •.
.
.
i
h\
pressing
International
be
of
a
.
.
Later there will
.
.
.
.
the
Permanent
Organization.
The
...
proposal, aiming at the creation of a per¬
Civil
interefered
with
7 77;77r77:'77
"7'7 7'. '>7
■'
on
*
.
Organization.
new
7
*
♦
-7'v
'
.
.
,
7-
'•
:
Economic and Social Cooperation,
under the
the
Dumbarton Oaks provisions, and a summary of the net
;",7: 7-. ",v 7;-"'./
(1) Chapter 1 of Dumbarton Oaks, containing the statement of
purposes of the Organization, is expanded to include mention of
human rights and
education, . and has also added the Australian-
results follow:
-
...
All
Section
—
been
not
"Dut
tne
.
A-2
Chapter IX
of
provides
shall
be
limited scope, including those-With only
international relationship.-!.
added
to
that tfie official bodies to be
"interidvernmental" nn<^ have
responsibilities.*^ 4*.®tis will effectively bar
now
Council
international
ap^ily
.
.
.
To
the
same
bilateral or
section has
tri¬
als°
important clause, of Canadian authorship, providing
only for the reception of reports from the Council's own staff)
giving it the definite right to organize completely new agencies
an
Council
is
strictly on its own initiative. ... In the same section
given the power to make arrangements with non¬
governmental
.
agencies, like the International Cooperative Association, the Workers Trade Union
Association, the National Association
consultation
7.7
Preparing the agenda for the new League will be far more
.
the
when necessary
«
plicated and detailed than at first blush would seem likely.
into
agencies of
lateral
...
changes following hereunder
Dumbarton Oaks.
wi<te
obli¬
:
the
(2)
7 7
%
r
promulgated pledge promising joint and several fulfillment of
gations.
(4) Technical committees and staffs: Particularly active could
be the staff leading to the ultimate Economic and Social Council. .
*••"7
agency.
for
means
functions to officialdom in the
liom
-
SWITZERLAND
personnel
are
not to
-7
•
dissolution, when the.Charter is ratified.
.
other
...
;
•
-
GENEVA,
any
able and tactful leadership of Sir A. Ramaswami Mudaliar of
India, will finish its labors this week, and report publicly to the
full Commission Monday next
An itemized seriatim analysis of
the changes made in the
projected Economic and Social Council
Executive Committee of 14 members, chosen by the
above described top Commission jto whom it will report.
; This
Committee will be on a regular-meeting basis, and supervise oper¬
.
of the
because
and
very
An
ations full-time.
bodies,
Service, taken out of national politics,
by political considerations.
.
•
The manner of the United States participation may be influ¬
enced by Mr. Stettinius' future, particularly should he transfer his
and
Springs, this agency will probably be set up as follows:
(2)
of
The Committee
.
Following the lines of the Food and Agriculture Agency after
Hot
kind
manent
77-7
.
*
.
.
Canadians
.
'*
CmCAOO
not be subservient to
the
.
.
health
and
The Preparatory Commission will be influential in determining
•
"
NEW
.
social
.
(3) A Secretariat, much smaller than the subsequent full Secre¬
Y. Cotton Exchange
Labor
other
accomplishing all this. . . V
Drug Boards operate under six separate conventions in affilia¬
tion with, but not as integral parts of the
League of Nations, and
comprising several non-United Nations countries.
-7 7 : V C
has been drafted, which the United
length yesterday. , \ . Setting up the
.
Inc.
Nations Organization, as one of the
organizations, as will be the case with
Office.
They will be brought in inde¬
be
at
tion and again, at its
Trade
Cotton Exchange
United
new
The
(1) The top Preparatory Commission proper would have a mem¬
ber from each nation, who might meet only twice, once at its intia-
*
the
of
paper
and other Legislatures.
treaty participants.
brought into the Organization, with strictly United Nations
membership, a new so-called Advisory Commission to replace the
^existing Advisory Commission of fhe old League.
7 The interim
period between the end of this Conference and the ratification of
Charter, are progressing rapidly. , > . Major delegations each
have at least one member working on the problems; and a working
.
.
are
special nature of their problems—including the restrictions on drugs
.
;
v.
77,r7;7'7;''77..7_/•■ 7,.,
intergovernmental
pendently
the
I; *;\
N.
7
object to their getting their foot inside the
body will have to devise the
Plans for
Exchange
Exchange,
Board
into
official
full say on the
a trusteed ter¬
7':7;7
;
■'
a
may
.'i7i7y7:;.7v77
.
Board
by
.
be affiliated,
to
Yesterday, the appropriate Committee here acted to bring the
existing permanent Central Opium Board and the Drug Supervisory
...
big power, Russia wants to have a
Commission, although she has never had
.
.
of the outside organizations
case
For, although they are autonomous bodies, the bitterly
...
brought
Members
the
the International
As
(5)
of
some
...
•.
...
excluding
Nations
(B) Some non-United Nations countries
(3) The general formulae for voting, with the veto privilege,
extremely far-reaching even within the areas unanimously agreed
.'v..
0
door.
the Council as an
absurd degree.
instrument of Big Five power to an
the
and
•
_■'. "
Located in London, the organization will probably be called
the Interim Commission or the Preparatory Commission—with the
latter the more descriptive.
.
In any event, it will function as
a "working party"; to set up, housekeeping.
... It will make all the
detailed arrangements and draft elaborate agenda for the first meet¬
ing of the new Organization's General Assembly. v,
.
.
To avoid
gun-jumping, the operations will be kept informal. ...
-
In
trouble.
(2) Giving the Security Council, supposedly an agency for
of force, control over selection Of the Secretary General;
use
f77-7.7'
•77-:7'7'.;
*
United
present
Bretton Woods), Sweden, Switzerland and Ireland, may cause
as
anti-League USSR
.
•ti
the
of
factor
(A)
(such
all nations, in favor
Council which is controlled by the Big Five. , . .
whose
.
the old League members, enters in two ways:
General Assembly,
of the Security
of the
powers
The
i:
,
national arrangements,
DIgby 4-2727
/£ if
>
.
.
.
...
*
daily becomes more
(2) To absorb the facilities, and the many and complicated
under the existing League of Nations.
-
•"
■
ciated powers.
sciously concentrating power in the Big Five
marked.
Following are some examples:
.
provisions naming the League will have to
its climax, the process of con¬
Conference moves on to
As the
.<7,
7j' jf: i'-J
the Nye and Wheeler isola¬
cynicism, unwitting encouragement to
tionist school is even feared.
•
.
.
.
.
(1) To avoid jumping the gun in
.
.
be transferred to
substituted organs of the new United Nations Organization. .
(3) Who actually owns the present mandates; who has actual
title, as in the case of Palestine? . 7. They belong either to the
possessing country, to the League, or to the former allied and asso¬
controversy is regretted
both her own interests
of the stimulant to
The Kremlin's drastic stand in the veto
ican Congress
■:
.
.
by many of her good friends here, as injuring
and
international cooperation. 7. . Because
,
Exports—Imports—Futures
.
:7
.
tion
zation's
■b
v
*
*
*
.
SUGAR
K-'ll 7
.
.
States delegation discussed
machinery for this interim
period before the World Organization can legally function, is part
of the agenda for this Conference, but will have no place in the
Charter.
This machinery will be done before the Conference
is ended..'..
■
V7
;V7'v:.
:/
There are two problems:
■:V!
'-y
/7-;
ij ,'j
i.
''.L
Commission.
determination of the veto-point is not the
...
Trustee
NEW YORK 5, N. Y.
severally? . . . This must be discussed by
British favor the new League taking
nations
the
or
Interim
the
.
.
.
ritory.
WALL STREET
i
7
.
—Walter Whyte
.o
Nations
•" ■
•
1
.
.
.
f
1
I
v
crucial fac¬ them over, through payment. ...
7 '
tor.
V The really significant conclusion is the following: Granting
(2) What action is to be taken regarding the many treaties which
the" premise that for the League's "practical operation" the veto
were made specifically under the aegis of the League of Nations?
privilege is necessary, this justification for the necessity of a veto Articles 22-25 of the League of Nations Covenant provide for its
can
only signify hopelessness for the
long-run career of the cooperation in varying manners through conventions and treaties on
League.
For if it is necessary not only to permit, but actually matters of Labor; treatment of native freedom of communications;
to
legalize aggression and other international lawlessness, what traffic in drugs, women and children, and administration of mandate
chance
is
indicated for international cooperative and
unselfish territories.
All of these treaties will have to be reviewed, which
policies?
'7^777^777:77777. ..7.7y777777;77'\7777v7777 will involve a most difficult and lengthy task.
All the arbitra¬
jJr.<
LAMBORN & CO.
4
*■
1
But the
77.
t
(
■' *
(4) The Charter will be declared effective after ratification
each of the Big Five, but by only a majority of the other nations. .
'I [The views expressed in thii
article do not necessarily at an%
time coincide with those of tht
Chronicle.
They are presented at
those of the author only.]
;^>9
:7;7.
*
""
iM
7. 7.y
\
65.,,v,
'
v.w-7.
.
,
com¬
ises
. . .
S" ^overnment assenting), for
GrS
informal
7-77.
.;
*
*
*
.77.-7
"';7-.,
■
As anticipated, the
International Labor Office—following prom¬
to change its
Constitution—has been given the "rapporteur
,
Number 4392
161
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
treatment" (that is, the Committee's rapporteur will report "favor¬
able recommendation") regarding its inclusion—with the Soviet dele¬
abstaining.
gate
.
.
^y'r;;. J'
'
.
(3) Section B, relating to composition and voting, is unchanged
«
to providing for the number of Council members at 18,
despite proposals varying from 24 up to representatives from each
of the 50 States. . . . Choice of the members in accordance with
each State's economic importance was also proposed, but particularly
because of the-greatly broadened activities now prescribed, and
because of the imponderability of future factors, it has decided not
to specify qualifications of the members. . .
Eligibility of the mem¬
bers for reelection at any time is; alscr provided... , ./
1 \!
(4) Section C of the Charter, which specifies the powers and
functions of the Council, will include a provision stating that the
Council "shall" invite any member of the Organization to participate
in discussion, without vote, in any matter of interest to it.
The
Council is to decide factually whether a subject is of interest and
with respect
.
properly calls for an invitation.
with recourse,
but a moral one.
.
.
This is not
previous suggestions which would have thrown the Council wide
open to all who want to sit in. . . . The withholding of the voting
privilege from such sitters-in, in contrast with the visitors to the
Security Council, is occasioned by the former's lack of executive
powers
possessed by the enforcement body
to ensure speedy action in the conduct of its business,
In order
Rouse Debates Bretton Woods Bill
•>;
V
'
11 »•
'*•**'
>•-
1
m
.
.
quires
clarification:
language
is
as
short-term loans, and therefore
requires
amendment
"But
cept
of
none
these
Oaks C-l-C, the Council is en¬
make reports, to the General Assembly, to the
member nations, and to the specialized agencies. . . . To the nations
these reports must be encyclical; that is, whether approvingly or
disapprovingly, it cannot—because of the sovereignty factor—report
to any particular country or countries. . . .
(6) The Council will supervise the affiliated agencies in two
ways: with respect to the nature of their work, and with respect
to possible duplication of work. . . . The Council can issue advice
to, and can consult with, the specialized agencies as the Bretton
Woods Fund and Bank, but must stop short of issuing policy direc¬
tives.
If it wishes to stop duplication by order, it must do so
through the Assembly; directly it can use only persuasion. . . .
...
Assembly can recommend to the affiliated agencies coordi¬
policy; while the Council can only recommend coordination
activties.
Even the Assembly cannot reverse, or otherwise
The
nation of
.
direct, policy; for example, it will not be able to reverse loaning
policies or particular decisions of the International Bank. . . . It
is felt that this will present no practical problem, as the World
Organization and the agencies are not separate corporate entities1;
but interwoven affiliates with largely identical constituent mem¬
'
•
-
■ •
-
Agreement,
but
light
no
Wolcott
the
on
or
is
Amend¬
The term
'temporary assistance' in connec¬
with 'cyclical' and 'fluctua¬
ex¬
(7) The Conference has put some "teeth'! into the Council's rec¬
ommendatory activities by providing a follow-up to require reports
from the member countries as to how they have observed its previous
directives.
This check-up right will act as a bar against lip-service
...
promises—and will remove the Council's recommendations from the
plane of mere pious prayings. . . .
.
(8) Also added to Dumbarton Oaks is the power given to the
Council to call conferences and prepare conventions. And it is em¬
provide information to the Security Council directly,
Assembly on call, i . . This puts the relation¬
ship with the organization's enforcement body in much stronger
terms, and .can stop economic-born troubles with less delay. . . •
^
(9). The Economic and Social Council will be specifically directed
to establish a Commission for Human Rights. .
.•
v
(10) The previous specification for experts exclusively in the
organization of the Council has been eliminated. . . . Particularly
because of the Council's subsequently widened activities, the experts
proviso might have kept off highly desirable individuals—-as business
and labor leaders-^who might not have been able to qualify. . . .
powered to
instead of through the
of the committee responsible
the above-specified changes that they have greatly strengthened
Economic and Social Council over the Dumbarton Oaks version
for
the
earnestly believed by members
in the following
tr
respects:
The
Jv"
"
*■'
■'
"u
*
■-
■
-v;•*
■
get
(c) Through the provision for giving the Council power to
only regular reports, but special reports on request, and
(d) Through the provision for two-day reciprocal representation
not
;
-
with the agencies.
(II)
its
own
•
.
is greatly
The Council
functions, viz:
strengthened through additions to
.
.
(a) Getting reports from the member countries in answer
recommendations, and reporting its conclusions thereon to the
eral
Assembly;
(b) The power to make studies
Although there necessarily are no
favorable
greatly*"1,
(c)
press
.
Council
...
Gen¬
,.
and
in
the
Secretariat
chosen
—
the
at
discretion
of
the
Security Council's members.
The official family here feels very
strongly that the revision accomplishes the very maximum accom¬
.
plishable
within
the
•,
'-v '.'5^%
provision authorizing the Economic and Social
perform services at the request of specific countries and
new
agencies'
■
!■
,/
'
<.
close link with the Security Council;
f
(e) The power to call international conferences;
-(f) Authorization to prepare draft conventions, as on patents. .
This has been, found very useful in the past by other organizations
like the International Labor Office. ...
•
.
;.
(d) The
new
framework
as a
cannot
a
control
.
.
impossibility
of
creating a
Similarly the Economic and Social Council
,
either the States
of evolution
process
vidual.
the
of
...
or
the individuals.
present Union
our
But through
.
does reach the indi¬
now
au¬
subject, includ¬
ing the highest in the employ of
Federal
Government;"
and
exception
they said the
term 'cyclical' could not possjbly
considered
within
coming
as
unless it could keep it
period plus sufficient ad¬
purpose
for that
ditional time to make it
to pay it
materials has been
raw
during the past week.
.
.
vigorously brought to the fore
Representative
quoted
the
Smith
item
in
the
(
.
the
of
limitations
of
the
Charter's
of the
need for catering to domestic
stated aims for practical purposes. . .
frame
of
reference,
demands, and of using loftily.*
.
"Is there a joker in
interpretation?"
Iri his
conclusion,
Mr.
Smith
added:
"Entirely aside from his amend¬
ment
word should be said
a
a
of
wartime
incident; that
normally
export markets; that the
and that finance
access;
tion
of
goods.
.
the
materials slogan Is always
lies in
problem
of goods may
certainly is
The French
.
.
egress
raw
be
the finding
difficult
as
as
crucial factor in the acquisi¬
a
proposed the setting
of
up
a
Com¬
mission to
ensure that there would be equal access to raw materials
capital goods (mentioning the means of production, according
to the translation of their own delegates).
'
'
The proposal has been endorsed by some producing-consuming
countries.
It has been backed by Belgium, New Zealand and
some South Americans—notably Uruguay.
The French say that
lack of goods is a basic cause of war, and that raw materials and
the means of production are just as important as full employment,
which has received the Organization's blessings. ... They want to
permit both producing and consuming countries to have access to
international commerce, and to allow devastated countries or de¬
and
...
...
.
veloping countries to have
access
to the
.
.
means
of production.
ican
should
but
Social
Council.
become
.
.
internationalized
under
the
Economic
and
They want the Council to prevent cartels from
.
controlling international trade in' both raw materials and capital
goods, and advocate "buffer pool", agencies of consumers and pro¬
ducers to fix maximum and minimum prices.
When queried as
to a definition of "equal access" and as to the incidence of prices
.
and
payment, the
.
.
French reply that the Council must find a way
quite frankly advocating a redis¬
tribution of wealth to the have-not nations on a world-wide scale. .
.
to
effect
the
financing—they
scheme
are
.
we
remain
Before
we
shbiild
be
pairt^of it
by. its
own power destroys itself.
If ^he
Federal Bureaucracy can create
by propaganda a sufficient amount
until it
to
its
runs
a
of sentiment to force
Congress to
now,' what
scheme
this
chance
and
course
would
there
be
ivy
the
Congress to Have
anything to say about withdraw¬
future
the
for
ing from it? Only when Congress
regains its independence as a leg¬
islative body will there be
^ny
hope of it being in
position to
a
exercise sufficient power to deter¬
mine whether the United States
shall
shall
or
it."
from
withdraw
not
>
'
^
•/<•;
*
Wolcott An Ardent Advocate
Representative Jesse Wolcott of
Michigan,
ranking
Republican
member
the
of
Committee, has
.
Haw Materials Boards expanded
and recommend that these Boards should not remain Anglo-Amer¬
They want the existing Combined
the
on
being free to with¬
our
this
enter
adopt
It will be rememberedothat the
also
May; 31
"Chronicle":
the Fund
prepared
.
Although the proposals made by France have been summarily
disposed of, the discussion left, interesting evidences of the lack off
realization
possible
! u
off?"
draw from the Fund.
Access to
V
VHow possibly could a loan to a
country
going through,, say,£ a
five-year
depression,
serve j its
matter of
'
•
,
.
.
£anUng
stepped out
of the most ardent plead¬
one
as
for
ers
House
now
Fund
the
Bank.
and
Naturally, he directed part of his
lengthy speech to the criticisms
Representative Smith had aimed
Wolcott
at the
Amendment^ Mr.
Wolcott said, in part:
"It
has
been
said
that
any
country participating in ttye Fund
has an automatic right to co(ne to
the Fund and get exchange up to
the amount of the member's quota
here that the real French motives are to elbow
their way^ on to the existing Combined Raw Materials Boards through
the World Organization, to please public opinion at home, and to
have another means of keeping a chip on their shoulders. . . , It
must be remembered that the plea for equal access is wholly incon¬
sistent with France's own past policies entailing intra-Colonial pref¬
erential arrangements.
The supporting South American countries
are afraid
that goods and credits from the U. S. will be diverted
to Europe instead of in their direction. . . .
It
is thought
...
*
*
particular Commissions to be created, and particular subjects
studied, should not be in the Charter; that the Conference
to
be
is
only creating machinery in the Charter, and that matters like this
shall be disposed of later for the benefit of the working Organi¬
zation, and that it would be entirely impracticable and ineffective
of
because
of
the
18
months
The
ments."
Committee
gave
.
.
the
before
longer
or
actually begins to function.
the
new
Organization
proposal the new "rapporteur treat¬
the rapporteur reports to the full
he will mention that the
Economic and Social Council should consider at an early date the
in
Commission
open
session next week,
problems relating to raw materials and
It
be said
can
the contrary,
on
capital goods.
.
.
.
high authority that, despite current rumors to
there will be no regional commissions
problems. ...
throughout the
world to deal with social and economic
♦
*
♦
.
.
.
telling the Fund what it
exchange for, and for
purpose for which the mem¬
any
ber
the
fit to
sees
that
I
it.
use
.
pared to the importance of turning out an
-
•
thipk,
true, if there wete
were
ii
nb
brakes
against that procedure;
many of us would still be skeptU
cal of the advisability of going
this
in
committed
The
Fund.
action
took
addition
to
language of the Agreements
selves to give reasonable
th^
them4
assurj
against those practices.
Iri
an amendment to the bill, it def
fined the American interpretation
ance
of
the. limits
will bear with
which the
I hope you
within
me
while I review
of those.
some
'
8 of the Articles of
Agreement we find this language?
'Before it gets exchange the memf
ber must represent that it ghalji
"On
page
for
used
be
one
of
the
purposes
If it
for which the Fund is set up.
the
exchange for any other
Durpose,
it is subject to expulsion
Fund.'
■]
uses
of the public's interest in the
Conference that is centered on the termination date.
. . In fact Com¬
mander Stassen, for one, is quite out of sympathy with the public
wise-cracks about the time factor, and with the journalists' gripes
thereon.
Although he himself is most anxious to hurry back to
his Pacific naval duties, he points out that time is unimportant com¬
Strange seems the relative amount
at ' all,
restriction
any
without
wants
Fund should operate.
.
It ordered that when
...
without
into
of the proposals have pointed out that the aims
The opponents
effective Charter. . . .
It appears as if the termination will either come unexpectedly
soon, or be drawn out for a very long time. ... The first alternative
V, (my The Council will be strengthened through the changes in
its structure which assure that interested countries and agencies will may come about through a sudden resolution of the log-jam consist¬
ing of only a few remaining items. ... On the other hand, the end
be actively consulted. ..."
may be long delayed through deadlocks, through the necessity for a
(IV) The great concurrent concentration of power in the Big final coordination of the Charter—document, language difficulties—
Five raises the importance of the Economic Council. . . . It Is the
and finally, because Gromyko may have to submit the final docu¬
one realm where the "Little 45" Powers can exercise
influence —
ment to Moscow in toto, as was done with Dumbarton Oaks, despite
particularly during the imminent pre-ratification transition period
the fact of practically "all of it having already been submitted piece¬
wherein both the Moscow Declaration and Dumbarton Oaks provi¬
meal.
"
sions vest all political powers in the Big Four or Five. . . .
yearg;
this
on
.
Some of the technicians here make analogies with
.
.
.
historical process.. J. In the Federalist papers it was pointed
basic flaw that the Confederation could not reach the citizens
our own
out
.
.
and reports on its own initiative,
formal accompanying "teeth, a
coupled with the organization's prestige may help
eight
numerous
.
.
' '
The
Council to
.
to its
thorities
be
Special Economic Staff Committee for managing
economic sanctions, devised by American
technicians, has been per¬
manently shelved.
Sanctions will be determined by the Security
Council, with the ad hoc help of experts in the Economic and Social
Council
their activities"
consulted
the
as
averaging
as
have
without
The plan for a
*
is strengthened in its relationship with the
affiliated specialized agencies, viz:
(a) Through the initiative given to it to create new agencies;
(b) Through spelling out the ways in which it will coordinate
(I)
I
tions in the balance of payments'
'
It is
cycles
tion
could certainly be Interpreted
embracing long-term loans."
transactions,'" Mr.
continued,
"is
defined
; "Minor
asked.
the scope of short-term lending.
(5) By additions to Dumbarton
'
prohibit
terms
'current
Smith
abled to initiate and
...
to
cycle?" :Cont-
a
defined by James Ar¬
Estey, Professor of Eco¬
ing close to 40 months, and major
Amendment
ment from that source.
the former.
is
Smith
Current transactions
thrown
well
as
long
are
defined in Article XIX (1) of
authorized
long
cycles
thur
'
the
Agreement.
the
make
"How
gressman
nomics, Purdue University, in his
work, Business Cycles, as averag¬
in
are
through taxation, etc.
...
To Section C-l-B, providing for recommendations to be
made by the Council, is added the field of human rights, to con¬
form with the amended Charter in other sections. . . .
(E)
bers.
2505)
page
to
to
.
-
make it evident that the Fund is
intervals.
.
the
clear
*
either
re¬
that
or
sufficiently
World State.
.
that it
doubtful
and
'
-v
(Continued from
unclear
against infrequency of meetings, it is now being pro¬
vided that meetings must be called on the request of a majority of
the members. . . . This is judged preferable to prescribing time
and to guard
of
«
i
.
.
a legal obligation
Vlt represents a compromise with
...
.
.
2529
from the
whole
"The
whether
be
set
not
or
up
could
on
should
oi^ whether the
the part of the Fund
position where they
was
managers on
would be in
controversy
the Fund
a
operate within the limits of
stabilization. The com¬
currency
mittee, to meet the
objections that
might be used for long-,
transactions, " to
stabilize
the Fund
term
economies, to give relief, and
for
rehabilitation, reconstruction, and
development made very clear the
-
(Continued on page 2530)
What the Public
■
V
puts
Government
can
(Continued from page 2503)
the Ameri¬
interpretation which
this
on
A
In addition to that in¬
terpretation * there
has
been
language.
issued,
pects to see the performance
of "Oklahoma" over her tel¬
evision receiving set.
assistance
as
loans.
1erm
temporary
for
used
be
1
that the punishment of Ger¬
man war criminals should be
payments
international
into
vision sets.
will
"There
in
introduced
be
shortly, either
the Congress very
by me or by someone else," Rep¬
resentative Wolcott concluded, "a
bill
set
to
the Export-Import
as an inde¬
up
of the Govern¬
increase in its
capital skock from $700,000,000 to
$2,200,COO,000, or an increase of
$1,500,C00,000, the
activities of
which;will be coordinated by this
National Advisory Council.
Let
us
take this thought home and
think about it:
If we participate
in this Fund; if we participate in
pendent agency
ment, 'with
an
the International
Bank; if we in¬
ExportImport Bank of Washington to
$2,200,000,000, there will be no
justification for the Treasury di-.
the capital of the
crease
loaning
rectly
to
country one single
i/f
any
dollar."
national Bankers"
In
the
day's speech on
second
his
Representative
bill,
Patman
reverted to the theme that a ring
bankers
international
of
is
re¬
sponsible for the opposition to the
Alluding to the fact that
the late Leon Fraser's name had
Fund.
mentioned
been
opposing
by Congressmen
Mr.
bill,
the
Patman
stated that Mr. Fraser had spear¬
the
headed
not
want
to
say
anything against Mr. Fraser per¬
sonally, since "he has departed
this life," but pointed ; out that
Mr. Fraser headed what is per¬
haps the largest bank of its kind
a
in
■A
the
world,
bank which,
a
ac¬
cording to Mr. Patman, has only
.
P.
1,200
; \
I'"
1,
*
customers
than
of
dollars.
That bank,
less
a
no
million
Mr. Patman
House, symbolizes the op¬
position
F
accepts
and
account
told the
■
Public's Desire for Television Re-
to
the
Bretton
Woods
measure.
Crawford
:
Representative Fred L. Craw¬
(R.) of Michigan, who op¬
ford
posed the bill, quoted the Securi¬
ties and Exchange Commission as
his source of information thai the
chief
of
the
Bretton
Woods Agreements is to channel¬
ize American savings into foreign
investments.
He said that the job
is
purpose
and very
a
is
inveigle the American
people into sending their savings
into
foreign lands, Mr. Crawford
said.*
Calling by name various
Representatives
seated
before
him, Mr. Crawford asked:
"How
dollars do you want to in¬
Mr.
Spence,
Mr.
Doughton, etc?"
Representative
Doughton merely held
up
his
many
vest
X
'< 7
£•.*
f >
abroad,
hand,
.
as
if to ward off something
unwelcome.
that officials of the
SEC believe that this country is
unable to find
and
profitable employ¬
domestically for its savings,
is
therefore
supporting
the
campaign which the Administra¬
tion has been waging on a wide
3
j
front to encourage foreign invest¬
ment
after
the
war
scale.
on
a
vast
is
a
their
readers
these
of
67%
Another
said, "I like and may get."
Thomas Joyce, when with
the
Corporation of America,
a
study in 11 cities and
Radio
made
post-war
the
in
that
found
pe¬
people would
be willing to pay $200 for a tele¬
vision receiving set—34.3% would
riod
of the
61.3%
would
10.3%
to
willing
be
$400.
Radios
of
Manufacturers
Very
Jessie Sumner
(R.) of Illinois, author of an un¬
bill
which
in
striking
by
speech
a
Fund,
the
out
defeated by 120 to 18,
was
United
the
the
informed
today
that
House
the
amend
to
attempt
successful
States
had
banks in the United States
a
capital and surplus total of ap¬
proximately seven and one-half
billion
dollars, yet there were
billions of created dollars
circulating in the United States,
while in 1944, alter the total capi¬
forty
had increased only
about four-tenths of one billion,
tal and surplus
circulat¬
the total created money
public has been fired by the pos¬
sibilities of television and because
in all market studies such a large
proportion of the public express
as being
desirous of
themselves
does
would have power,
Woods
Bretton
thanks to the
I
which
of
and
Agreement
amount, the
the bill, to create an
limits
Fund
the
that
seem
would
not
be
estimate, but certainly it
could extend to much
able to
than
i^ore
depending
dollars,
billion
six
on
how the international bureaucrats
controlling
their
exercise
Fund
the
power.
"The bill before you
authorizes
the
Secretary of the Treasury to
issue Government obligations to
extent
of
two
hundred and fifty
billion
either
money
or
use
them
The Fund
as
circulating
bank deposits,
wouldn't it
serves, since
use
seven
million dollars,
which the Fund takes.
can
why
so
them as bank
re¬
this would enable the
Fund to create
manufacturers
more
money
as
a
bank does?
Typical of the optimism of tele¬
vision manufacturers are the fol¬
lowing examples:
the
without the United
the
approval of
the
American
representative.
I see
no disposition on the part of the
Administration to disapprove it.
Fund
Agreement
would
give the Fund sufficient power to
pledge foreign currency, or for¬
eign gold, or securities, or foreign
private bonds. It says: 'or other
acceptable
assets.'
The
com¬
mercial banks on the basis of this
the following:
1. Networks
Mr.
RCA,
3,500,000 sets per year withih
ten years after the war.
Mr. Arthur P. Roth, Executive
to
of
Vice-President
the
'
-
the
National
the
one-half
to
sets
three
a
will
be
coaxial
over
that of standard broadcast
No
year
rate
of
fifth year
advertiser,
the
the
and
advertiser
.
Mr.
Palmer Craig, Chief Engi¬
Philco believes that 4,-
with
market
vision
he
or
of the
can
the
$75,Q.Q
Groups—
Group
Group
D
"Thus
it
seems
that
our
six
billion dollar contribution is only
the
begnining—only the initiation
fee."
developed before it was
to the public as has tele¬
vision."
Caldwell
Clements, publishers
Industries," ques¬
tioned 54 leading radio manufac¬
of
-
"Electronic
know
nearly
as
asked
as pos¬
to
cooperate with
series of-market
answers to help,
us
them in
making
studies
to
a
get
formulate
fair estimate of what
a
post-war market for televis¬
will be.
We have-made and
ion
studies in;
regard: to the.
post-war market ot television.
In one of our studies we asked1
making
now
•their; interest -
ing
many
in-1
Group
cost
be
15
million
$75
ion
'
6.90,600
210,540
2.2
2,158,140
7.2
964,050
6,106,600
the fol¬
a
people
thinking
to their
and
study of
home
23.0
refrigerator or
ond of the many
new
car
or
or
compete
things that will
for his dollar.
4. These people have not yet seen
ia-demonstration of the types of
that
programs
over -
they
They
television.
will
may
disappointed.
public does not yet
very
5. The
get
be
know,
get in size of pic¬
ture and program for its.dollar
what
it
will
;
television after the war.
job now to try to in¬
form our samplings of the public
more exactly as to what they win
get in television after the war and
It
see
do
as
expressed de¬
414,000
a
other
express
not
-
;*
have
in
{ r
up
11.0
20.4
1,052,700
49.5
six
11.84.7
3.7
-2:
3.2
212,400
203,040
529,470
19,140
37.6
•
'>
9.0
3,598.320
a
No.
8.0
14,839,500
willing to
'
$300.00 more
,/0
388,800
26.0
the cost of
'
more
1,144,800
38.7
22.6
many
various
NOi
war.
sort
findings
the
$200.00
more
1,123,200
These figures must be tempered
wishful
allowed
tentative pro¬
first
a
the
;
3,234,080
as
of
in
55.7
million
lowing:
$300,
into the
for televis¬
price ranges
with the following results:
jection
standard radio set in order to have
after the
,
question,
respondents
Willing to Pay for Television
No.
television after the war—that
$200,
this
to
answers
make
53.4
are
a
if
$125,
$75,
3,029
to
2,406,240
over
buying
in
;
The
us
7,641,510.
people
more
that
were
from
$125.00
66.3
Would
had i television
interested
set
than
more
total post-war market
is
.
cost
more?"
This would indicate that about
pay
be
you
tele¬
Public
will
sets
standard broadcasting sets.
doing.
to
1,193,450
Lv—_
Total
live
highly
to
•
what to expect of the post¬
market for television.
They
have
pay
more
No.
Group
B
C
"Probably never before has
a product of a great new industry
been so completely planned and
says,
offered
United States.
to
by
the cost of so
Amounts
this
of
war
is not yet known how many
hours a day people would be
Carmine, VicePhilco Corporation
President
profit and loss
Sylvania ■ also
practical about it. It
wants
4. It
1. We do know that in
H.
rapidly and
It would be
large quantities.
sible
post-war
reach
"extremely conservative."
James
much like
very
come
wants to be
television, knows
degree"* of accuracy
any
American-made goods.
Mr.
some
But
over
will
it
by such considerations
requires
a member government to sell its
currency for gold to the Fund if
requested.
Thus the Fund has
power to dump any amount of
newly
minded
gold
into
the
television
radio
has
that
000,000 television sets, in use after
the first ten
years
post-war is
of
They would
see
of
cost
security would lend money, or as
some
would call it, 'create new
and additional dollars,' to claim
neer
getting
statement.
;
bered, however, that these figures
are
based
on
what r the
public
thinks they will get in television
per
answered
in
upon
beneficial to their,
cable
after the
sets
been
not
prediction
dependent
to
materially, .-higher than
after the war, with 5,550,000 sets in use within five
years after the war.
2,000,000
the
have
"And's"
post-war tele¬
•
networks
-
-•
would be willing to pay
$125 more, that over, two million
$200 more and nearly one million
$300 more.
It must be remem¬
to
"If's"
about
-
will
produced yearly.
3. Thirty million television sets
will be in use by 1955. •
Mr.
E.
Vogel of Farnsworth
Products predicts that there will
be 250,000 television sets sold the
first year after the war and that
will increase
ac¬
•
be
this
are
:
"Council,
provide about
television
other
and
any
ion.
.stations.
A
and
Two
one-half
that
manufacture of cathode ray types
which' would be used in 'televis¬
RCA
predicts that:
1. Television will
the
experimenting with relay
Their plans are primarily for long distance tele- respondents the following ques-y
phone service, but could handle tion: "After the war, television
television. Vf,;
V..- "•! may be available in certain parts
2. The cost of handling television of the country. Television receive
4
President of
Television
is
-•for
Mr. R. C. Hooper, regional ad¬
of
to
standard
regard to
the postwar market for television
are
laying
either the size
manager
and
certain
plan -for
600,000
people throughout the
country could be expected to ac¬
cumulate $650,000,000 in savings
earmarked for television.
Division and
shows
"But's"
vision
the
telephone wire,
Victor
These
and
or
Square National Bank, states that
22% of their depositors are sav-, 3.
?
ing specifically for a $400 televi¬
sion
set
immediately after the
war.
Mr. Roth believes that 1,-
vertising
compared
as
producing
broadcasting industry, however
knows that they will be
very
expensive.
have
television
for
amount of coaxial cable and also
Franklin
.
interest to him
no
ceptable to the public have not
yet
been
worked
out.
The
relay * station
net¬
works. The A. T/& T. does have
a
-
Joyce, when with
of
broadcast
yet been developed.
works
featuring
studies
their
on
turned
when he
producing television
public
cost
Tele¬
vision networks.; cannot, like
Standard Broadcasting, use tele-?
phone wires. Networks for tele¬
vision are dependent on the de¬
velopment of coaxial cable net-
other
predicted that within five years
after the war annual sale of tele¬
vision receivers would be 2,500,000 sets and that this would 'go
the Fund the« right to borrow dol¬
or
the technical problems
'still unsolved or undeveloped are
promise of television.
Based
lights
room
shows that will be acceptable
to
the
Among
not
campaigns
advertising
the
broadcast of
7. The cost of
in
•"
of television.
-
2.
Agreement
possibilities for the rapid growth
also carrying, important
are
that are
unanswered, any one of which
affects
materially the post-war
•
Newspapers and
war.
media
have
living
read because his
chil¬
dren want to watch a
television
The mass
psychological problems
bring to the public after
and
.
have
genuine answer to them.
going to get.
Our client, Sylvania Electric, is
The public assumes that tele¬
vision will be available to them very much interested in post-war
along the lines that they have let television. Sylvania is a very im¬
their imagination run. But there portant factor in the manufacture
aire still dozens of technical and of radio tubes and also in the
carrying full-colored page adver¬
tisements on what television will
do
'
;
to
wants
5,000 television sets sold be¬
fore the war and it is now esti¬
mated that only about 3,000 sets
imagination has been stimulated
and by the millions they say they
want it without knowing exactly
one"
which
tests
to
out in the
than
use.
clinical
willing
imag¬
been
that television was a rela¬
tively untried and unknown thing
before this war. There were less
in
on*
been
made to determine whether
the
father of the house would
be
ever,
Currently many magazines are
and
"The
op¬
4,600,000 jobs per year. •,>
Fund
with
very
television.
timistic about post-war
gives
"The
after the war,
of radios and
television have become
Thomas
hundred billions.
"It
television
having
the
ing in the United States was over
one
imagination of the
Because the
Representative
it
greatly stimulated by the coming
of television and that manufac¬
turers and promoters of television
are both energetic and optimistic.
It must be remembered, how¬
are
to
been determined.
has
public
the
of
degree
6. No
doubt that the
There is no
ination
minuted
house
wives would drop their
house
work to watch television
dur¬
ing the daytime has not as yet
■
Have Some
some
watching it for 15
5. The
for Television
Drawbacks
Prospects
Rosy
certafn
evidence to indicate
people's eyes tiro
—others after watching for
half hour! 1 '
5
'
very
a
telpvi*
what they are
O^'Vv Television
Create
Will
Fund
to
seem
consuming
public in the United States could,
therefore, have had very little
be
willing
to
pay
$250—20% contact with television as it actu¬
would be willing to pay $300—
ally is.
In spite of this, their
"The Fund Agreement
It is alleged
ment
Sumner States
Dollars
Representative
States
to
16.5%
study
readers,
women said that
post-war, "must."
of
11,150
of the
Optimistic About Post-War
lars within
great selling job will have to be
done
in
said' T they
magazine
McCall
a
promise
competitive market.
would
Forty-three per cent
wanted television.
among
that
after
for
expect an excellent market
television after the war.
Also
were
respondents
the
of
pay
years
people
3,029
radio?!'
war
public is intrigued with
desirous of having tele-
partly
up.
asked
this question,'"What are the fea¬
tures you want most in your post¬
and
set
done when the
There has then
still to be the purchase of foreign
bonds by American investors, and
only
Bank
the
that
The
which
has indicated
few
last
made
study
market
Every
the
the
SEC Is Quoted by
Studies
fleeted in All Market
He added
criticism.
did
he
that
■M
■
foreignJ $6,000,000,000 subscription would
>
j be "only the initiation fee." In
her speech she said: "In 1940 the
Again Charges "Inter¬
Patman
I-'-;.,
public's conception of what
they expect from television is
endless.
They want it and hope
to get it.
:
The
of Washington
extracts
from
are indicative of this:
Stewart Brown study in
television
vised.
Many people expect to see the
latest movies over their tele¬
balance.
Bank
their
tele¬
Many people expect to see
favorite radio programs
contrasted with longThis assistance will
will be.
they imagine it
as
these .manufacturers
that
dicate
following
The
In
televised.*"
-
give a breathing spell which may
be all that is required to bring
the
feels
Another man in New York
;V
vision
studies
in Fort Wayne, Ind., ex¬
A lady
"I stress the fact that the Fund
to
exact
the
of the battle for Tokyo.
copy
is
expects to
happenings
Illinois
in
man
watch
that every one may have
so
.'interpretations put upon
the Funa language by the United
States Treasury, in a little bro¬
chure cilled the Bretton Woods
Proposals: Questions and Answers.
a
planned to pro¬
duce one or more models of tele¬
vision receivers.
This would in¬
of
amount
initely that they
01 Television
.
(Continued from page 2529)
Expects
watching
already a
There is
ion.
they intend to
manufacture television sets after
the war.
Of these, 41 said def¬
or' not
whether
in
interested
indicate
they
requesting
turers
House Debates Bretton
Thursday, June 7, 1945
FINANCIAL CHRONICLE
COMMERCIAL &
THE
2530
is
if
our
their
intense
desire
as
it
to
sires.
still
buy is
has been
vious studies.
in Vre"
.
.
television
prospective cus¬
We have not post-war
2. The
moriey people have today
with which they might buy tele¬
sets to
vision
a
might not be a plentiful
when they can get television.
3. When it
comes
to
actually buypeople
might decide they would rather
television
many
try out
tomers.
store
on
We cannot lead
them inn*
show them
television
and
sets in different sizes
at
diffci'elJ
prices and demonstrate those se
to them to see if they want
buy. The best
we can
do is to
ex-
Number 4392
161"
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
to those people who say
want a* post-war television
set what that set is likely to be,
and see if they still want it.
For instance, in current studies
we are explaining to them the fol¬
lowing points about post-war tele¬
vision to see if it changes their
plain
from
List
of
Issues
statements
days
in
normal
than
become
course
twenty
A-2.
effective,
FAIRMONT
shares
WEDNESDAY, JUNE
RACQUET
CLUB
D. C. has filed
in the room, to see if
this changes their point of view
about television. We will also
which
explain that the father of the
family cannot read in the same
room with such a television set
going, and it is unlikely that
the housewife would meet good
reception in a semi-
television
day lit room,
explaining as nearly as
possible to explain the de¬
3. We are
it is
which 'image interfer¬
to
gree
spoil television pro¬
may,
ence
■
explaining that the post¬
war
television
set, unlike a
standard radio may get out of
tune fairly frequently and have
to be retuned. And retuning a
television set with many differ¬
difficult
than
a
standard broadcasting
set.
Women may not like the
mechanics of television tuning.
5. We are explaining to them the
size and quality of the set that
they might get for their dollar
after the war, to see if they are
willing to pay that price for
have
will
picture
a
of only 3 ¥2 by 5 inches;
At best two or three people at
screen
feet
three
about
of
distance
two
watch
could
away
or
television show on this size
and
screen
such
show
football
television
any
miniature at this size,,
very
5^
would
screen
large
and
may
the
on
for complex scenes
also be quite tiring
eyes
to watch for any
-
get a picture
16 by 20 inches
.
that
screen
Ih'size the
prospective customer would
have
to
pay
about $400 or
more.
This size screen could
is
reproductions
good
give
of
provided
events
and
shows
C.
Purpose—To
matured
bonds.
inactive
The
for
members
the
of
answers
respondents
the purchase of a
post-war television set.
We are
very interested in getting realistic
answers from the public in order
better to evaluate the size of the
in
regard
to
and
their
the
determine
to
which
television
television
for
market
post-war
kind
of
will meet
acceptance.
questions that we
are now asking all that should be
asked. They are but one step to¬
ward a more accurate understand¬
Nor
ing
public's attitude
television.
Meanwhile,
of
ward
must
the
are
the
to¬
we
realize that there are many
technical
"if's,
and's
and
of
Sylvania
and
or
that
a
know
marvelous
eventually
another
in every
does
is
it should
use
new
has
the
become
is
also
pointed
it
Club
possible for
is
holders
foreclosure
to
and
25% -of
of
thereby
the dubs."
both ot
by
to
of
will
be
be
filed
acquisition
of
preferred
"
ance
stocks
will
S-l.
Oil
shares
additional
stock
of
crude
oil,
Of
refin-:
company
subscribe
Stock.
the
Indiana,
outstanding
to
common
shares
14.9,523%
:¥-V'/•
;jj
holder
Standard
of 75.2%stock, will
of
the
new
estimated
stock
from the sale of
$1,783,452 together
at
proceeds from a $3,200,000 bank loan
will be used to construct a 10-inch crude
oil
pipe
line
from
Rangely
oil
field,
be
added
The
$4,500,000.
Wyoming.
to
i
statement for
stock
pipe line is estimated to
Any excess of proceeds
t ha t
thing
in one form
and will be
Texas.
.
Not Blocking
&
Co.,
receive
&
Co.,
to
or
with
A
I'OWER
11,972 shares of preferred stock,
lative
be
filed
($100
filed
registration
a
The
par).
ferred
issue of
for
such
and
of
to
CO.
be
of
number
21 filed
parent of Red Bank, will
a like
shares
loaned
with
addition,
registered will be
all
Inc.,
Steel
of
issued
Products
of
stock.
Federal's
shares
100,000
tered.
The
&
to
as
to Bennett
for various
the
Co.,
regis¬
of
shares
&
in exchange
Inc.,
Co.,
obligations of the registrant.
company
the
100,000
$180,000
which
is to receive upon the sale
shares of common stock is
which
be
added
to
the
Underwriters
Principal
—
underwriter
Bennett & Co., Inc., Dallas, Texas.
Registration Statement No. 2-5754. Form
S-L
(3-31-45).
'
full
for
Plans
•
production
OF OFFERING
be
exchange
old
from
and
registration
a
We
below
present
days
twenty
list
a
offering
mined
have
dates
or
more
or
ago,
of
not
to
unknown
are
but
been
Dsnet
filed
whose
deter¬
report of the Execu¬
of
of the State of New
a
tive Committee of the Chamber
Commerce
York, made public on June 4.
istration not to authorize
of
tension
any
the ex¬
such unnecessary
issued
not
ex¬
be
discouraging the
and ex¬
enterprise," the report
adds "the Chamber be¬
production
ENGINEERING
AMERICAN
filed
27
INC.
The
says.
It
that the prompt
all such unnecessary
ending of
controls will
impetus to the plans
which industry, labor and Gov¬
ernment are making.to attain the
goal of full production and full
employment in the postwar pe¬
great
give
riod."
Holland and Luxemburg
Resumption was announced on
22
May
tween
of
the
communications be¬
in the United
public
States
and
in
that its contribution to
television industry may be
sound and lasting.
the
so
at
shares
$6.25
a
will
Prophet to officers, di¬
employees of the corporation
and
a share. Any of the 13,500 shares
by such officers, etc., will
purchased and offered to the public by
purchased
troit,
and
named
filed
at
$6.25
share.
a
of
total
and
for
29
107,923
of
outstanding
issue
of
each
GASPE
filed
OIL
200,000
and
stock
common
share
common
shares
200,000
for
VENTURES, LTD.,
of
on
itself,
sold
its
$3
full
filed
28
Details—See
in
of
issue
Offering—The
conversion
Prescott,
agents
share
for
which
shares
called for redemption
balance
the
be
will
the
out¬
Wright,
to
H. Walker & Co. and
Snider
and
secure
Co.
exchange
as
procure
qonsents of
series
first
due
bonds,
mortgage
1947
and
to
reduce
AYa"»
the
aggre¬
gate principal amount of its indebtedness
to $3,750,000 by redeeming the outstanding
bonds and
Issuing $3,750,000 of
bonds.
new
The bonds will be sold at competitive bid¬
ding.
SOUTHWESTERN
ELECTRIC
SERVICE
been
1945. Any CO. April 18 filed a registration statement
public bj < for $2,375,000 first mortgage bonds, 3%%
series due 1975; 8,500 shares 4%% cumu¬
&
Rupe
lative
of
Son
preferred stock (par $100) and 128,-
935 shares of
":Y
(
of
have
the
at $102.
underwriter
share
»{■■■•
$4,806,000
May 1,
to
preferred shares
shareholders to the conversion.
The company also proposes to refund the
be offered
shares
on
offered
8.
is offering 13,0*6
5%
A
preferred
rata to the former holders of the 7ft
preferred
on
Underwriters—The company has retained
Initially to the common stockholders
the basis of one share
for each share of common
will
March
company
& Light Co.
■
subscribed
CO.
standing 5% cumulative preferred shares
held by others than Cities Service Power
preferred
shares not
POWER
&
registration statement for
of Class A 5% cumulative
a
chares
shares of its Class
A. HARRIS & CO. on April 23 filed a
registration statement for 7,000 shares of
6Va%
cumulative
preferred
stock
(par
pro
named.
LIGHT
E6tabrook & Co., G.
.
C."
basis
preferred stock, par $100.
the offer¬
in
JOSEPH
13,056
price of 45 cents per share.
dc Co.
,v
necessary,
per
Underwriters—None
Underwriter—Tcllier
$100).
if
Otherwise
to
at
ST.
May 17.
and development
stock
will,
shares.
two
purchase
and
purchase wararnts for the purchase of
2,000 shares of common for each 15,000
of common
share for
one
Reynolds Metals
of the common
mathematical
a
subscribe
reserved
Offering—Price to the public is 60 cents
per share.
The underwriter will receive
a
on
also
wells.
ing at
Richmond,
will
Feb.
shares
held,
61.47%
owns
Reynolds
share, and will
share any stock
not subscribed for by other stockholders.
The rights to subscribe will expire July 5.
warrants.
oil
at
warrants
common
Business—Exploration
shares
since
each
May
par)
purchase
of
Details—See issue of
of
($1
share, in the ratio of
of
record
of
May 31, 1945, the
shares of common at
entitled
registration statement for 1,500,-
a
shares
stock
common
business
stockholders, including Reynolds, would be
to about 97/100 of a share for
Co.,
Mercier, McDowell & Dolphyn, both of
/•.
.;V;Vv."...
V / ./•;
000
May 11
on
wuive
rights to the extent required to
provide shares for stockholders other than
share.
&
its
of
additional
two
stock
stock),
Livingstone
of
which
Co.,
April 5.
R.
CO.
statement
stock
common
close
$3 per
All of the
par $1.
RADIATOR
registration
a
333,333
Detroit.
8
&
for 333,333
(par $1).
Details—See issue of May 17.
Offering—The company is offering to
Offering—Offering price to the public is
per
Hague & Co., De¬
Blosser, Chicago* are
underwriters.
Straus
principal
shares
com¬
March
on
statement
Underwriters—Dallas
CO.
on
Feb
statement for $3,sinking fund debem
tures and 200,000 shares of common stock
Of the stock registered 132,000 shares an
Issued and outstanding and being sold bj
000.000
a
registration
5%
15-year
Details—See
at
of
issue
March
CORP,!
LAISTER-KAUFFMAN AIRCRAFT
for
filed
registration
statement
17,702 shares first preferred
stock, 6%
April
on
19
cumulative
a
(par $1).
common
scribe
and 260,136 shares
(par 5 cents),
8.
Underwriters—John) R.
named
The
Kauffman
Co.
Underwriters—Van
heads
the
names
of others to
Alstync,
underwriting
Noel & Co
with th<
by amend'
group,
be supplied
ment.
ARKANSAS-MISSOURI
in
for
CORP
POWER
registration statemenl
mortgage bonds, seriei
3Yb%, due Dec. 1, 1974.
filed
4
Dec.
$2,000,000
a
first
Details—See issue of Dec. 7,
will be offered lot
competitive bidding.
at
ATLANTIC CO.
sinking
on
statement
istration
and
fund
274,868
March 23 filed a reg¬
for
$10,600,000
5%
1, 1980
stock (no
.'"¥? '%"//
debentures, due April
of common
shares
par).
Details—See issue
of March
reorganization
company
preferred stock the privilege of exchanging
their shares on the basis of $100 par value
of stock for $100 par value of 5% deben¬
tures and one share of common stock; to
holders of 7Va% cumulative preferred stock
the
privilege of exchanging their shares
on
basis of $100 par value of preferred
stock for $100 of debentures and 5 shares
of common and to holders of outstanding
5% Class A preference stock the privilege
)f exchanging
their shares on the basis
of $50 par value of stock for $50 par value
it 5% debentures and two shares of com¬
mon
6%
preferred and
5% Class A stock offering their stock for
exchange shall receive dividends on April
1, 1945, at the same rate of dividends paid
hi
the stock on Jan.
1, 1945, but shall
-eceive no dividends thereafter, the deben¬
tures bearing interest from such date.
Any debentures not issued in exchange
for
holders
stock
shall
of
the
then
be
offered
to
holders
presently outstanding first mortgage
sinking fund bonds on the basis of
5100
par
of debentures, plus an amount
not exceeding $3 in cash for each $100 par
jf
5%
being
sold
filed
24
ifisue
of
is
principal
named
MORRISON-KNUDSEN
INC., April
12 filed a registration statement for 4,000
shares series M 5% and 3,000 shares serlef
N
6'/o
cumulative preferred stocks both
$100
value.
par
issue of April
Details—See
preferred
Offering—The
at
bf
par.
Underwriters—-Wegener
Idaho,
Boise,
will
is
&
underwriter
Daly,
Inc.
the
for
pre¬
ferred stock.
for
statement
50,000
dividend
cumulative
sharer
convertible
issue
of
Is initially
holders of its
Offering—Company
new
preferred
to
6 Mi
of
one
shares
shares
will
writer
at
be
$10
offered
per
to
cago,
public
PACIFIC
GAS
&
ELECTRIC CO. on May
to
meet
for
the
$1
the
$1
preferred
will
be
offered
share.
conversion
is to
iequip¬
,
'
•
■
:
preferred stock.Any of
not issued in exchange
the public at $20 per
to
Corporation also is offering 11,822
authorized but unissued
at
$12.50 per share.
Underwriters—None
UNIVERSAL
filed
19
one
shares of
common
.
named.
CAMERA
•*
.
CORP.
,
,
;t
;
March
on
registration statement for 663,-
a
shares
500
Class
A
stock,
common
par
share, with Class A
cent a
com¬
stock purchase warrants.
issued
are
and
Of the total
outstanding and
being sold by certain stockholders.
Details—See Issue of March 29.
Offering—The initial offering price is $5
per
share.
Of
the
133,000
be
offered
share.
to
20,000 are
employees
not
Shares
being
shares
offered for account of company,
to
Cerf Co. of Chi¬
on
and 60,000 shares of common,
Of the latter 20.000 shares
Details—See issue of March 15.
are
is named principal underwriter.
CO.
statement
Offering—Holders of the $1.20 preferred
have been given the option to ex¬
change their stock on a share for share
530,500
by under¬
INVESTMENT
registration
a
stock
offering
share.
the
-
ments of the preferred.
stock for subscription at $10 per
basis
of
shares
annum,
commor
share or
share of preferred for each
of
common.
Unsubscribed
filed
reserved
mon
April 5.
12
par.
value
preferred stock, par $5.
Details—See
per
30 filed b
NU-ENAMEL CORP. on March
registration
60-cent
and
-
basis
19.
stock
common
preferred stock,
con¬
vertible, no par, non-participating with
cumulative dividend rights of $1 per share
be
CO.,
of
Service.
price will be filed bv
public offering price of
The
12,500
no
underwriter.
Public
Southwestern
SOUTHWESTERN
3.
May
Offering—Price to the public will be
per share.
^y^\":-v^:;.v'■
Underwriters—Kobbe,
Georhart & Co.,
shares
preferred stock will be filed by
and
March
for
$5.50
ot
common
five
Underwriters—To be filed by amendment.
common
stockholders.
certain
by
Details—Bee
ol'
The shares are
value.
par
registration
a
shares
61,965
cent
Underwriters—Floyd D.
stock.
The
one
sold
29.
and re¬
is offering it
holders of outstanding 6% cumulative
Offering—Under
capitalization plan
the
for
stock,
Inc.,
1944.
April
on
statement
bonds
Offering—The
lale
CORP.
each
amendment.
TELEVISION
&
of
unsubscribed
any
bonds
RADIO
outstanding
the right to sub¬
shares of
for
subscription
amendment.
is
principal underwriter.
share
MAJESTIC
128,935
Electric
common
Details—See issue of April 26.
Offering—The debentures will be offeree
100 and the common stock at $8.50 pel
the
the
Southwestern- Public
of
be given
will
the rate of one share of common of South¬
western
cents)
5
stock
to
of
Holders
—
Service Co.
(par $1), 250,000 shares class B
(par
Offering
common
262,314 shares class
$25),
(par
A common
common
class C common
stockholders,
by
lieves
public
13,500
by Mr.
Details—See Issue of April. 26.
risking of capital in new
panded
the
remaining
the underwriters
April
on
and
Dallas, Texas.
"controls tend to retard conver¬
of full
shares registered the
purchased 86,500 which
to
at $5.25
oi
outstanding and is
Nash-Kelvinator Corp.
(being
by
55.17%
ns.
controls.
sion^and the achievement
The
offered
RICHMOND
named.
stock,
common
is
owned
Any
whose registration statements were
issued
are
the
have
offered
rectors
pre¬
it
not
are
be
holders
of
Japan were promptly ended, ac¬
cording to
and are being sold by
Prophet, President, Treasurer and
share.
to
Details—See Issue of April 26.
UNDETERMINED
employment in the postwar
period would be given "great im¬
petus" if all wartime controls not
essential to the speedy defeat of
B.
Offering—Of
at $100 per share on
DAVES
full
outstanding
Shares
(par $1).
stock.
common
Underwriters—None
working
capital of the company.
a
and
pany proposes to market its own securities.
ad¬
an
common
530,823
being registered have heretofore been
issued
of
of
in exchange
Bennett
of
of
balance
shares
the
to stockholders
Corp.
the sole underwriter
is
ditional
>£tock
acquisition of 54%
150,000
April 17 filed
Fred
will
Offering—Price to the public is 30 cents
per share.
'■:/>.',^v
;
registrant
outstanding stock of Seatex Oil Co.,
In
for
the
the
to
PROPHET CO.
stock
Details—See issue of April 26.
Underwriters—S.
Ben¬
B.
Details—See issue of April 26.
registration statement for 333,333
a
shares of
Building,
gas business; i
shares registered
re¬
dealer-man¬
as
Underwriters—Smith,
$8
and
the
Inc.,
connection
of the
Bank
pre¬
has
company
common
will
rendered
purchase
11,972 shares as
Details—See
Republic
The
—
Director.
invite
to
COVENTRY GOLD MINES, LTD.
shares of
registra¬
case
-
FRED
is
the
shares of corn-
basis
each
to aid it in obtaining acceptances of
the exchange offer.
>
1945.
4,
the
ELECTROMASTER,
990,793
in
exchanged.
underwriters
proposes
services
for
the
share
share of 7%
ager
cumu¬
rate
It in obtaining acceptances of the
offer of new preferred stock for
ferred
for
adjustment
tained Alex. Brown & Sons
statement
dividend
Jan.
Offering—Company
proposals
stock
Underwriters
by amendment.
Details—See
share
a
in cash for each
registration statement for 100,000 shares of
Dec.
28
on
dividend
a
and $5
re¬
Atlanta,
of preferred stock in ex¬
ther29.182 shares of 7%
and
of 6% preferred stock now
for
shares
outstanding
underwriter.
as
CENTRAL OHIO LIGHT
209,970 shares in return for
Jap Defeat
is trying
proceeds
sinking fund bonds
shares
change
34,602
of calling all
outstanding unex¬
the
)n
/
.
Offering—Of
Controls
ground
the
the
use
63,784
exceeding
for
fered
within that time,
on
and
purpose
and
not
Offering—The new preferred will be of¬
but is it sound business? Sylvania,
with the aid of market research
to keep its feet
named
$1).
(par
Address—1905
Rio
County, Col., to Wamsutter Station,
notes
the
issue
taken in exchange for stocks or bonds
may
oe sold by the
company at not less than
par plus accrued interest.
in
Proceeds—The estimated proceeeds
with
will
imburse the company for funds
previously
used for that purpose.
Any debentures not
stock
••
Proceeds—The proceeds
the
bonds
it
changed pursuant to the exchange offer.
property.
issued
not
TUESDAY, JUNE 19
Inc.
owned on the record date.
Co.
a
the
for
RED BANK OIL CO. has filed a
in
Lake
Salt
Building,
for
serial
filed
Federal
Utah's
of
198,828
a
Is offering to
stockholders the right to subscribe tr»
new share at $9 per share for each six
Oil
solely
company
(5-29-45).
nett
filed
has
etc.
shares
at
,
Dallas,
stock, par value S3.
City, Utah.
Business—Purchase
one
public
about
Oct.
1,
1945, at $103 per
plus accrued dividends and any bal¬
from sale of preferred and common
share
man
CO.
for
statement
common
the
under¬
or
on
tion
i
1
REFINING
either
unex¬
the
exchange
will be used to redeem old preferred stock
the
~*.
"
^
I, 1945,
$3,400,000 3%
20,000
any
by
the
of
of 4Vi%
Proceeds—The net proceeds from the sale
"pro¬
named.
.
Address—Utah
shares
by amendment.
The re¬
shares of common are to
the
of
and
to
at
common
ten
all
on April 19 filed
statement for 63,784 shares
preferred stock (par $100).
Details—See issue of April 26.
Offering—The company will offer the
registration
a
a
a
SATURDAY, JUNE 16
registration
of
will be filed
remaining
offered
20,000
by
of
each
purchased
Business—Oil
OIL
holders
price
preferred
shares
to
for
The
new
issued
of
/
UTAH
holders
share
one
subscription
amendment.
be
Registration Statement No. 2-5751. Form
(5-25-451.
of
The
writers
embarrass
•
-
Underwriters—None
S-l.
the
to
not
a
Registration Statement No. 2-5753. Form
the Racquet
outstanding first mortgage bonds to
ceed
basis
40,-
on
of sufficient funds
out
of the
combination
share
offering
preferred
new
of the matured first
apparent
mortgage bonds secured upon the premises.
It
the
working capital.
Underwriters—To be supplied by amend¬
ment,.
:■(
"never be possessed
effect liquidation"
June
Underwriter—Courts
is
company
,
of
common
rate
maining
University Club of the City of Washington
which occupies the club quarters of
the
Racquet Club under lease agreement. Upon
consummation of the registration, title to
the
property would be conveyed to the
University Club, which would guarantee
the payment of interest and principal on
the extended bonds.
The petition stated
will
the
price
Communications With
home in the country. But
should
be
exercised in
vision sets in
of
has
Holland and Lux¬
emburg. Regulations permit that
overestimating the rapidity with
which it will come.
It might be messages be sent only in English,
good
promotion
to
claim
that French, Portugese and Spanish;
within five years television sets the use of code not allowed. Busi¬
ness and financial messages to be
will be selling at the rate of three
limited to exchange of informa¬
million sets
per
year
and that
there may be ten million tele¬ tion or ascertainment of facts.
caution
for
and
of
par).
like amount of outstanding convertible pre¬
ferred stock and is offering 42,773 shares
Club
members
become
of
but's"
that still have to be answered.
television
share
years
Racquet
number
a
have
extension
for
provide
The
that there are the shows or
report which will be presented by
events to watch.
Peter Grimm, ^Chairman
of the
We are now trying to get an¬
Committee, at the monthly meet¬
swers
to these problems to de¬
termine the degree to which some ing of the Chamber today (June
of these possible situations influ¬ 4) urges Congress and the Admin¬
ence
shares
changed
is none End of War
extended period.
(c) To
Washington, D.
Business—Club.
to
a
about
be
by 734 inches. This
too
a
000
shares
its
filed
POTOMAC EDISON CO.
All of the
bonds
mortgage 3%
serial bonds shall be
called for redemption.
The company contemplated that about
pic¬
(b) For $250 the size of the
ture
1,
Offering—The
west,
cost
,
3%
mortgage
1945, to mature Jan.
like amount of bonds
Jan.
1,
1945.
The Uni¬
matured
Banco
becomes
game
or
opera
an
as
first
(no
The 5% sinking
callable at 103.
first
Business—Dairy industry.
held.
its
will get a set
(a) For $175 they
a
Jan.
Offering—The
For instance:
which
extension
dated
stock
common
exchanged.
are
changed 5%
Address—1202 Jones Street, Omaha, Neb.
i
13
WASHINGTON,
registration statement for
a
1965, to replace
ing,
that type of set.
OF
of
versity Club of the City of Washington
(guarantor) joined in the application.
Address—1135 Sixteenth Street, North¬
knobs is far more
ent
a
bonds
it
grams.
4. We are
*
$492,300
been
has
CREAMERY CO.
registration statement for 60,000 shares of
preferred stock, 4% ($100 par) and 62,773
explaining the fact that
many lower
priced television
sets
require almost complete
darkness
t
SUNDAY, JUNE 17
SEC.
1,
general
(5-28-45).
un¬
war
'
will be used for
purposes.
Registration Statement No. 2-5752. Form
less accelerated at the discretion of the
television set to operate
successfully must have an out¬
side antenna at an additional
cost of $30 to $50.
stock
fund bonds
outstanding 5% sinking fund
exchanged for debentures and
Underwriters—None named.
registration
less
grouped according to dates
registration statements will
ago,
which
on
whose
filed
were
sale of
corporate
NEW FILINGS
judgment about buying it.
1.We are explaining that a post¬
2. We are
value of bonds
Calendar Of New Security Flotations
they
2531
at $4.25 per
subscribed for by em¬
ployees will be sold to public through un¬
derwriters along with the rest of the public
For every ten shares of common
offering.
purchasers,
other than
4 filed
a
registration statement for 700,000
common
stock (par $25).
The
shares are owned by the North American
Co. which is offering them.
Details—See issue of May 10.
Awarded May 22 to Blyth & Co., Inc. at
$36.76 7/10 per share.
The SEC on May 23 refused to approve
(be bid. stating that competition had "been
stock
shares
cf
ployees,
stifled."
held before the SEC on April 25.
to
bought,
one
share,
em¬
will receive warrants to subscribe
share
on
or
of
common
before
Dec.
stock,
31,
at $5
1948.
per
Em¬
ployees will receive such warrants for each
five shares of common stock purchased.
Underwriters
named
—
principal
Floyd
D.
Cerf
underwriter.
Co.
Is
Hearings on 3top order proceedings were
4
-a
i
'
r'1.
,
BUY 7th
ELECTRONICS
Foreign Securities
V.
•,% '/J• r.'f
*
WAR LOAN
RAILS1'
MARKETS
-
Teletype
MY
Thursday, June 7, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
2532
BONDS
INDUSTRIALS
t
1-971
r.ARL MARKS & CO- INC.
O VEll
THE
-
-
COUNTER SECUHITIES
Nl. S. WIEN & Co.
FOREIGN SECURITIES
SPECIALISTS
Telephone
50 Broad Street
Members N.
40
New York 4, N. Y.
•
-
CHICAGO
AFFILIATE: CARL MARKS & CO. Inc.
2-0050
Security Dealers Ass'n
Teletype
RAnover
,
Y.
Exchange PI., N. Y. 5
Y.
N.
HA. 2-8780
1-1397
Kobbe, Gearhart & Company
incorporated
Members
"BrettonWoods" Before the House
Interested and seemingly happy^
fairs took
observers in the front row of -the
'Members'
-
*
.
the
Gallery:
Family
program's American author, Dr.
Harry D. White, who through it
has already earned himself an as¬
sistant secretaryship of the Treas-
*
accompanied by his faithful
ury,
action
Only
it.
on
Dewey stating that he
for the present BW
Mr.
Broker-Dealer
bill, HR 3314, were he now still a
member of Congress.
assistant throughout the long ges¬
Recommendations
in¬
Fabrics—Discussion of
Lea
teresting
&
divided
Is
between
sides, but in each case is allot¬
ted
a
to the various members by
should oppose
BW; adds that he does not know
of "any organized body" which is
against the program today.
stand why anybody
Representative in favor of the
bill, Repr, Sabath acting for the
Democrats,
and
Repr.
Jesse
Wolcott for the Republicans.
Committee Clerk Wallas Dingus
circulates
The members speaking address
House
through microphones
set up on either side of the aisle.
There are also two microphones
among the seats, arranged so that
they may be swung one way or
the other. During Repr. Buffett's
speech in opposition to BW, Repr.
Wolcott and Repr. Jessie Sumner
of 111., standing side by side, en¬
gage
in a hot interchange, the
microphone being swung rapidly
back and forth between them, to
the amusement of the House.
Repr. Buffet of Nebraska
B W
the
ens
with
to
a
he
which
reminds
wtyh
a
before
of
referring
The mouse¬
of
one
horse
a
mouthful of hay. But the
hay."
His
speech ended, Mr. Buffett
care¬
"ain't
greenbacks
carries
fully
his
greenbacks
bill's opponents; —
^
~
large bundle of printed hear¬
A
ings is opened by a House
and
for
the
BW
able
the
first
page
Part 2 of
time
hearings becomes avail¬
to
printed
his dis¬
in
Congressmen
form. Repr.
Wolcott opens
cussion of the bill stating it to be
assumption that every member
of Congress has read the hearings
and
report
of the Committee.
However,
some
members
have
been heard to complain that they
could not prepare for the debate
because they had difficulty even
in borrowing from the Committee
galley proofs of the hearings.
his
Few
will
of
members
have
the
printed
pages
before
the
House
opportunity to do
an
much reading in the
bill
to
the hearings
is passed, and
read them, if the
continues
to
lock
Committee
hearings
the
keep
and
key,
it
as
has
done for some time with Part 1.
111., who
Theory for the Committee's pe¬
culiar action in holding on to the
printed hearings is that any op¬
last year introduced a plan of his
own
for
international
currency
ponents of BW thus continue to
be deprived of the opportunity to
stabilizatiton, reconstruction and
development. The Dewey plan in¬
read
Seated
with his former Repub¬
lican colleagues is ex-Representa¬
tive Charles S. Dewey of
volved
than
very
BW,
much
and
American
less
the
dollars
would
of
have
Be¬
the plan was firmly rejected
by Administration witnesses, the
on Foreign Af-
House Committee
Eastern
Net
7-0744
1-886
& Co., 120
Street, Chicago 3,
Co., 208 South La Salle Street,
y
products and
Public
National Bank
&
current
notes—C. E. Unterberg & Co., 61
V
.
"
•
Co.,
&
r
.
ih
25
broad
4,* N. Y.
,W\
...
,
„
..
.
of
—Brochure
articles
'
'
Securities with
Fifth
Avenue, New
York
1
Seaboard
Railway
Co., 141 West Jack¬
dum for brokers and dealers
—J. W. Gould
only
Co., 120 Broad¬
New York Curb Exchange Com-
Also available is
on
home
his
Carbon
dis¬
American
analysis
new
a
of
Car
Panama
and
a
advertisements,
such
Albert Frank
-
Guenther Law
Incorporated
Advertising in all its branches
NewYork6,N.Y.
131 Cedar Street
f
Telephone COrtlandt 7-5060
Coca-
Cola.
trict.
for
Consultation invited
j;y',
memorandum
Bantam
;
personnel and office location changes
deserve care in preparation. We will
be glad to suggest appropriate forms
suitable
Co.—Cir¬
cular on interesting possibilities—
Hoit, Rose & Truster, 74 Trinity
Place, New York 6, N. Y.
N. Y.
in
'
--
BOston 23
of
•
Thermatomic
terberg & Co., 61 Broadway, New
published
&
Co.—Anal¬
ysis, for dealers only—C. E. Un-
cles
1922
Tele.
8715
Announcements
New York 5, N. Y.
way,
York 6,
BOSTON 10
Company—
Seatrain Lines, Inc.—Memoran¬
Boulevard, Chicago 4, 111.
Radiator
Established In
HANcock
Broadway, New York 5, N. Y.
Report on interesting growth
possibilities and post-war outlook
National
,
England Unlisted Securities
-
.
Tel.
v>*•''-
Specialists in
„
New
24 FEDERAL STREET,
Complete arbitrage proposition on
request—Sutro Bros. & Co., 120
y.;y
Michigan Chemical Corporation
—Kneeland &
New Eng. Market
a
Frederick C. Adams & Co.
—
son
.
Public Utility Stocks and Bonds
TEXTILE SECURITIES
they have
N. Y.
Street
..
Industrial Issues
Investment Trust Issues
Schenley Distillers Corporation
;
350
New York
specialize in all
Insurance and Bank Stocks
yy y
Trust
and
Company—Analysis
Hanseatic
York
New'
—
P. ,R.
Mallory & Co., Inc.—
Analytical
discussion — Steiner,
•-
BS 328
:v
"
Co., Inc.—De¬
&
discussion of
Rouse
Hanover 2-7913
We
— Current
Corporation,
Pine Street, New York 5, N. Y.
been running in the ChronicleCorporation, 120 Broadway, New write to Mark
Merit, in care oi
York 5, N. Y. ,
' :/y: }: Schenley Distillers Corporation
V
Teletype
Hubbard 6442
Railways
Broadway, New York 6, N. Y.
R. Mallory
MASS.
9,
New York
-
Pittsburgh
Company—Brochure
information, avail¬
Chicago 4, 111.
outlook
BOSTON
Boston
Chicago Philadelphia San Francisco
Boston
Query
vator:
tial
page
New
in the
overheard
"Now
York
Van
ele¬
Dorn
Iroh
Works—Report
the
influen¬
-^Hughes & Treat, 40 Wall Street,
Times
editorial
New York 5, N. Y.
that
has suddenly become
ful readers turn
a
similar
INDEX
con¬
verted to BW, will all its faith¬
Winters
tion—Memo
sum¬
mersault?"
—
—H.M.B.
&
Crampton
Corpora¬
current
situation
on
First
Pine
Colony Corporation, 70
Street, New York 5, N. Y,
Bank
and
Bioker-Dealer Personnel Items.....
Business Man's
Calendar of New Security
Canadian Securities
Dealer
-
Broker
mendations
Municipal
Mutual
NSTA
Our
Unlisted
Securities
Real
No Funded Debt
2522
News
Recom¬
—
INSURANCE
INDUSTRIAL
Notes.-.U
and
....
.2525
2524
2510
Securities
Estate
.....,..
*.
Securities
Salesman's
Tomorrow's
REAL ESTATE
—
.2506
Funds
Corner
Markets—Walter
.2518
.....2508
..2527
.
Whyte
2506
Says
PUBLIC UTILITY
...
Literature...
Notes
Securities
-
and
Public
the
BANK
Flotations.2531
Investment
Reporter's Report.............2518
Reporter on Governments..... 2520
Utility Securities
2505
Our
Specializing in
Stocks....... -2516
.2524
Bookshelf...........2510
Insurance
Pennsylvania Securities Section
on
pages
LUMBER & TIMBER
2512 and 2513.
BONDS, PREFERRED AND COMMON STOCKS
—
SOLD
—
Back The
QUOTED
No Pfd.
Working Capltal__$2J225,000
Book
Value
Cash
Equity
Earnings
_$4H.()0 + per share
__
Dividend
$2.'L00 +
2.95
per
$
per
share
$ 2.00
per
share
share
7TH
REMER, MITCHELL S REITZEL, INC.
208
So.
La
Salle
St., Chicago 4
★
Report
W. T. BONN & CO.
New York
in
printed
hearings is Repr. DeLacy of
Washington, although he never
appeared personally before the
Committee. Mr. DeLacy has been
advocating BW in newspaper arti-
MARKET TO
Teletype NY
111.
70
P.
RALPH F. CARR & CO.
Caswell
—
Campbell Common
Co.,
&
BOUGHT
Macon Northern 5's
Bell
glass
Common Stock
Central of Georgia
Telephone COrtlandt
com¬
Railroad
"witness"
Last
No Bank Loan
Radiator, Pfd.
Broadway
outlook for the
which manufactures
pany
study—First Colony
Magna vox
&
A. S.
analysis
discussing
and statistical
what
opposition witnesses
said, until the House has acted.
Pressurelube, Inc.
120
Waddell
5, N.;Y,
Van Dorn Iron Works
States, Pfd.
111. Power Div. Arrears
U. S.
Lipe Rollway Corporation—Cir¬
cular—Herrick,
k
Recent
money
lending
been under American control.
cause
—
v
1334 closely
of
few outside Congress are likely
under
with him.
away
other nearby
preparing to answer the
Spence» and
members
greenbacks,
keeps
during his speech.
trap
a
the
real mousetrap "baited"
handful
a
to
program
waving
mousetrap,
House
lik¬
the
of
House, making himself useful to
Mr.
the
floor
the
on
Co.
,
Trading
Transportation
Waltham Watch Common
Street,
Pine
5, N. Y.
South La Salle
tailed
-
York
Worcester
list'—Herbert
30
equipment
able to dealers—Fred W. Fairman
New York
Co.,
&
4, N. Y.
the House he cannot under¬
^
the bill
the
two
Northern New England Co.
1-576
lined and stainless steel tanks and
Inc., 55 Liberty Street, New York
The debating time on
Teletype
york
post-war' situation —
Co., 25 Broad Street,
Reading Clerk reads to
("Brainy
the House a letter from Presi¬
Bernstein, Ansel Luxdent
Truman
and one from the
ford, and others. In the Gentle¬
President of the American
men's Gallery another Treasury
Bankers Association, both en¬
^contingent and in the Diplomatic
dorsing the pending bill.
Gallery opposite, the State De¬
partment's
lone
representative,
Chairman Spence of the House
who has faithfully attended nearly
all the House hearings.
:;y Banking and Currency Committee
*
Stern
Pfaudler
Bernie")
tells
Schoellkopf, Hutton & Pomeroy
Stocks With Long Dividend
New
(Continued from page 2507)
Dunne
The
tation of BW, Dr. E. M.
new
Records—Tabulated
E.
vote
would
Finch Telecommunications
5
Oceanic
recently Repr. Wolcott inserted in
the Congressional Record a letter
from
6015
Enterprise
2-3600
Bell
telephone
philadelphia
telephone
RECTOR
YORK
NEW
STREET,
mon
no
Association
Dealers
Security
•«.
the
excerpts
bill commenced June 5.
Herewith are some
from the notebook of a gallery observer:
York
NASSAU
45
WASHINGTON, D. C.—House of Representatives debate on
BW enabling
New
YIELD
upon
RANdolph 3736
9%
request
WESTERN UNION
TELEPRINTER
HUGHES & TREAT
5
40 Wall
Tel.
BO
St., New York 5, N. Y.
9-4g13
Tele.
NY
1-1448
'
"WUX"
,
BELL
SYSTEM
TELETYPE
CG-989
Hill, Thompson & Co., Inc.
Markets
Tel.
and
Situations
for Dealers
Broadway, New York 5
REctor 2-2020
Tele. NY 1-2660
120
@FedFRASER