The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Number
Volume
In 2 Sections-Section 2
ESTABLISHED OVER 100 YEARS
pinal Edition
New
4392
Price 60 Cents
York, N. Y., Thursday, June 7, 1945
a
Copy
Post-War Aviation Control
The Financial Situation
By EDWARD A. MOREE*
Reached at San Francisco Nor Mech¬
Vice-President, Transportation Association of America
anisms There Devised Will Have Much Bearing on the
Course of World Affairs or in the Maintenance or Break Transportation Expert Recommends That (1) All Discrimination Against the Ownnership and Operation of Airlines Be Abolished; (2) That the Regulatory Powers
of World Peace.
of the Civil Aeronautics Board Be Transferred to the ICC; and (3) That the Federal
What happens when the dreams of idealists -and the
Government Exercise a Closer Supervision Over Contracts Between Airport Author¬
realities of world politics collide may be plainly observed
ities and the Users of Airport Services.
Favors Private Investment in and Private
in San Francisco.
From the developments in that city it
should not be difficult to infer what the result would likely Operation of Airlines Without Discriminating Government Subsidies, and Calls for
be in the future when the mechanisms of the idealists run Elimination of Prohibition Against the Ownership and Operation of Airlines by Other
afoul of the ambitions, the fears, the suspicions, the intrigues,
Types of Transportation.
Says There Should be Coordination of All Transportation
and the hatreds in which international relations among the
Systems and That Railroad and Air Services Are Not Highly Competitive.
leading powers of the world have always been more or less
The recommendations which I am privileged to offer for your
continuously submerged.
We should be rather more than consideration are those of the Transportation Association of America cost of resultant duplications and
Neither Agreements
...
.
all this into full cognizance these days
scarcely a politician alive not engaged more
continuously in harangues about permanent or last¬
foolish not to take
when there is
or
less
decades and even the denturies ahead.
ing peace in the
Less
Important Than
Supposed
have now been
told
that the future
so
group
peace
for
emphatically and by so many
of the world depends largely if' not
under
peace-keeping mechanism of some
effective sort can be contrived at San Francisco, that they
are in danger of believing it.
One result is that we have
become ""almost morbid on the subject, and apparently in¬
clined to insist upon, some sort of formula, however mean¬
considerati
and
possibly be rather more that
of the politician than of the man in the street, but there can
be no question that it is as always the man in the street that
(Continued on page
2536)
sum¬
PART III
riers so
Nazi Germany.
Governing
Board shall be
the member
of
Weekly
States, those
entitled to appoint
a
those with smaller
quotas appointing in convenient political or geographical groups, so that the members would not
with the
larger quotas being
member individually, and
Frederick
C.
Smith
;
l
Fig. 13
Article XII, Sec.
Store Sales in N. Y. Reserve
(March)
.*2492
Engineering Construction in
April .............. v.,.....,.....*2492
District
Civil
3
less than 12 directors * *
%
appointed by the five members having
"There shall be no
"Five shall be
9uotas.
the largest
a
*
Not
available this week.
These
of June 4,
,
Jj
*2492
dexes
Dept.
Bretton Woods
:
(Continued on page 2538)
Service
items
„
in our issue
indicated.
appeared
on pages
not fighting
are
this
millionaires, and cer¬
we are
not going to allow >'
operators or any
be in a favored
armed
generally,
are
sacrificing
;
so
necessity for an accelerat¬
of recruitment. Arrangements havewith the Civil Service Commission to
special tax drive and the
ed
program
been made
placed at every Army discharge center in the
a qualified recruitment officer from
Civil Service Commission, fully versed in our
United States
Market........2546
more
of good
heavily.
"The top officials of the Civil
Commission have been acquainted with our
have
Metals
to make
forces, and our citizens
Weekly
Weekly
Weekly Electric Output............2545
Industrial Activity in April........ .2548
Federal Reserve March Business In¬
much
class, when the men in the
Moody's Daily
Non-Ferrous
.
exceed (say) 12 or
15 in number."
t
Review...............2543
Commodity Index.. . .2544
Crude Oil Production
,2546
Lumber Movement.........
*a
Steel
in collection and en¬
will produce $20 or
other racketeers to
-2534
2547
good business for the
dollar
the black market
President Truman
Domestic Index.2544
of Internal Revenue
in revenue. And
tainly
Construction.. .2546
Paperboard Industry Statistics
2547
Feitilizer Association Price Index...2544
Weekly Coal and Coke Output
2545
appointed by
war
Exchanges.. .2545
2545
Review
about the
me
whatever extent is re¬
morals. We
2533
Trade
told
important is the matter
Odd-Lot Trading
Weekly Carloadings
Weekly Engineering
spend
more
Moody's Bond Prices and Yields... .2544
Items About Banks and Trust Cos..2548
Commodity Prices,
to
forcement
.2534
•
Ogpn, Eithei!
we
Regular Features
Ahead of the
General
and
state
"It will be
Washington
of
Moree before
Committee on Inter¬
Foreign
Commerce,
June 5, 1945.
(Continued on page 2540) V
House
the
Government, because every
car¬
•
on~N?w York
and
that
with the law.
CONTENTS
Situation
State
Keynes' Clearing Union
Article II, Sec. 6 (12)
Governments
common
News
Trading
submits
quired to insure full compliance
Pag 3
From
It
^'Statement by Mr.
The
forces
Editorial
Financial
prohibited.
plan to enlarge the Bureau
oppor¬
that the industry, as a
GENERAL
NYSE
Fig. 12
"The
of
and
truly shocking cases of tax evasion his men have dis¬
covered.
I am thoroughly in sympathy with his
capital, prudently used.
2. That
national policy provide
for the orderly and gradual re¬
organization
return?
ownership
common
aged rather than restricted
"Secretary Morgenthau has
vate
Keynes' Plans for Se¬
lecting
Executive Directors and Governing
Board Respectively Compared.
the
fair
a
an
tunity for the investor to earn
reasonable return upon pri¬
and Lord
Bretton Woods
of the facility,
consistent
rates
affording
a
Was Practiced by
Not
a
Currency
Analysis of the International Mone¬
British Empire and Russia Will Have
Control of the Governing Board, and That By Vir¬
tue of Britain's Richer Experience in and More
|
Abundant Facilities for the Handling of InternaI
tional Trade and Finances, That Country Will Exert
J
Preponderant Influence on the Funds Operations. I
He Asserts That (he Control of Foreign Exchange
and of Capital Transfers by the Fund Will Result
in Regimentation of All International Transactions,
as
most dependable
services, regard¬
lowest
the
with
Congressman Smith Concludes His
tary Fund by Pointing Out That the
Such
of the
That
operation of all types of facili¬
ties be permitted and encour¬
shipper is not interested in pro¬
moting one form of transporta¬
tion facility against another; he
should not be required to pay the
from
less of the type
at
ment, which must earn a
5.
and the cost of such services.
designed
be
regulation
efficient
and
di¬
reporting
follows:
1945, recommended as
sumer
By Hon.
•
of research
intp the transportation problem in
January, 1944, and in January,
the viewpoint of
assuring the shipper and con¬
Keynes Contrived International
Monetary Scheme
Member,
Edward A. Moree
marized its nine years
solely
single independent
agency
of4 facility which transports their
goods, but\rather " Tn the ade¬
quacy,
efficiency,
convenience,
Asso¬
That
promotion
carriers be cen¬
primarily concerned with the type
Aerona u t i c s
ciation
a
to
we
Shippers and consumers are not
Civil
the
transportation problem. Are
continue a philosophy of
national policy which places Gov¬
ernment financing derived from
taxation of the whole public, and
which need earn no return, in
competition with private invest¬
day
rectly to Congress.
Act of 1938.
1.
FREDERICK C. SMITH
Congressman from Ohio
House Committee on Banking and
Federal
amendm e n t s
The
general attitude may
o n
extensive
to
common
tralized in
674,
HR
laws
regulatory
the
of
That regulation and
of all
providing
ingless.
This
4.
time,
this
at
anti-trust
authority.
ment program
have
wholly upon whether a
supervision
develop¬
port
transporation be
from
when methods, acts, or propos¬
als of carriers are subject to the
air¬
an
you
so
excluded
the
of bills
to
which
often,
3. That regulated
ap¬
Equality of regulation is not
possible so long as each facility
is kept in its separate legislative
strait-jacket. This adds up to the
fundamental issue of the present-
whole, will become responsive
to efficient regulation.
recommende d
San Francisco—
major powers represented at
<8>"
-
ociation's
ss
plies
people of this country — it is not altogether clear
the same situation exists among the rank and file in any
of the other
A
the
as
policy
The
that
wastes.
insofar
the
recruitment
requirements, who
will steer to us
qualified veterans as they are discharged.
"The American people understand that sacrifices
are
They know the war is still far from
The one thing that might break down
keep on to complete victory would be a •
necessary.
being over.
their will to
(Continued on page 2536)
2534
THE COMMERCIAL
From
FINANCIAL CHRONICLE
&
Senate
Rejects $2,500
Ahead of the News Pay Increase Voted
By House Members
dropped in unexpectedly
party that
Washington
State of Trade
>'
a
on
was
given
by
Washington
came
the
Early
Steve
By a vote of 43 to 9 the Senate
rejected for its members any pay
increase
or
expense
allowance,
last
<S>who
beginning to wonder just
are
what that
of
one
for
newspapermen
ciousness
fellows.
and
good fellowship
Truman there
Mr.
Eve r
Under the gra-
means.
are
of
who
some
was
ybody
glad to
think the New Deal still packs a
see
such
gerous
wallop,
a
der
jolly good fel1 o w
present
and
gathered
around
shake
with
hands
war
in
upon,
Bargeron
shook
hands
with him. The Secret Service
quite
was
nights
nonplussed.
before
out
the
A
man
few
President'had
the
to
Burning Tree
Country Club, from whence Eis¬
gone
enhower with his association with
tSteve
Early,
sprung, and had a
crackerjack time with his old pals.
Stories
like
this
springing
are
nearly every day about the
up
President.
at
we
Just
are
of
one
their
denomination
ascending to the Presidency, and
they sent around letters to their
fellow
worshippers,
that Mr. Truman
pointing
was
of them
one
calling attention to the fact,
if it was a fact, that he had an¬
nounced he intended to hold onto
his
Baptist
affiliations.
His wife
and
daughter, it seems, are Epis¬
copalians. But Truman, supposedly
Laving announced he intended to
remain a Baptist, the Arlington
County Baptist ladies asked their
fellow
worshippers to pray for
him. We are told by one of these
ladies that they have been watch¬
ing ever since to see if he slips
from grace and comes under the
Episcopalian influence of his two
womenfolk. This
lady reports that
occasion he attended
one
on
serv¬
ices at Walter Reed Hospital and
the second time at a non-denomi¬
national church.
So the Arlington
County Baptists are
so
far satis¬
fied.
Margaret,
the
been instructed
daughter,
not
to
has
herself
let
he
the
wants
on this proposal, and it has
lying around for a long time
ment
been
Truman
—Mr.
has
just
given
The
man
highball
likes
or
Roosevelts
give a
They didn't
worry about divorces in the fam¬
ily, stories of carousal by mem¬
darn about this stuff.
of
bers
the family, about which
they attended or whether
ever
attended church.
In
quite an attack was made
church
they
fact,
once
on
Mr. Roosevelt because he
improvised a prayer on the occa¬
sion of D-Day
in Europe. The
Roosevelts
different.
were
Theretofore, of
in
a
course, a
politician's
posed to be political poison. The
question of his church attendance
was
highly important.
so
much
confusion, however, that the pub¬
lic couldn't keep its mind on such
things as this. Its attitude towards
the late President
apparently was
an infidel if he
to because he was
that he could be
-
wanted
doing
such "brilliant"
no
he
things.
Or it had
time, in the excitement which
created, to think of his per¬
sonal life.
It
seems
that this is to'be differ¬
ent with Truman.
we
,
To that extent
have returned to
normalcy.
But there
are
those around here
his
vote
call
vote.
motion
saved
of their
some
earnings
and
left
the
liamentary
al¬
House
$2,500
the
in
measure
situation
par¬
a
it
where
when
joint House-Senate com¬
a
mittee
undertakes to
compromise
differences.
those
voting to let the
against
Mr.
however.
fere
in
they had not
behind
the
tioned
"savyed a limb off"
House.
whether
Undoubtedly
action
would
House
members
the
or
other.
lowance
proposal, there would have been
a
tremendous
against.
agitation
.
.
,
for
A
\
.
,,
Then, along comes Judge Vin¬
the economic stabilizer,, to
son,
the
endorse
Wagner-MurrayO'Mahoney, and there is still an¬
other co-author of it, bill,
provid¬
ing for the national budget; that
is, a plan by which the Govern¬
ment at the
beginning of the year;
assays the probable national in¬
come and the employment
needs,
and does what is necessary to fill
in the gap. We say Judge
Vinson,
stolid
citizen, old school Ken¬
tucky Democrat, who wouldn't
harm
the
anything
the bill.
American
in the
tells
this
us
he intended to do.
for
concern
of
Free
dered
for
endorsed
is
From
the
Enterprise,
what
reading
preservation
had
we
won¬
whether
he
wasn't
just
talking. Even the Judge's
message, however, arouses no ex¬
double
Truman is rock-bottom
citement.
in
the
country's
opinion,
and
anybody to be
need for
no
We
have
no
radical
a
been
thinking that
the grounds that
difference what sort of
true,
was
it made
Vinson,
on
proposal
Truman,
or
anybody else submit¬
Congress, or how radical
they talked, because they lacked
the dynamic
leadership of Roose¬
velt, and a Conservative Congress
ted
or
to
would do what it wanted to do.
Now,
however,
warned to
watch
we
are
being
out for the fact
that
just as Truman lacks Roose¬
dynamic leadership, so is
Congress not inclined to watch
him
so
closely and to be
its
on
upon
the
guard.
him as
him.
man
in the
power
so closely
don't look
They
a
inclined
to
Because he is
seeking
world
a
and
along
go
all
are
with
rock-bottom
American, a Baptist, a Mason and
his daughter isn't going to hold a
highball glass in a photograph.
The
we
funny thing about it is that
know of
a
creased unemployment
compen¬
sation but if you don't do
it, how
they
going
to
have'enough
money to spend to
prevent
nression.
all
that.
We
adverse
fcir
who
took
Senators
an
were
al¬
un¬
for themselves.
approve
Bridges, Repub¬
lican, of New Hampshire, ?arguing
for
upholding the principle of
comity, asserted that "in the his¬
tory of the country the House has
stood
on
its
on
its
the
and
own
Senate
If the House has the
own.
to vote its members an
allowance they should have itj"
courage
he added.
The
New
Hampshire - Senator,
urged a similar allow¬
ance for Senators, asked whether
his colleagues- wanted to make the
Senate a "millionaires' club," open
who
had
only to
who inherited wealth
men
married
or
wealth.
Although refusing
for
crease
ate
$5
in¬
pay
its
members, the Sen¬
boost from $4 tio
day in pay for its pages arid
approved
a
any
made
a
minor
Capitol
other
increases
police
force
for
and
the
some
Capitol employees.
The
Senate
took
four
separate
Votes to decide it would make
to
move
improve
the
nio
financial
situation of its members:
are
a
afraid
deof
tool
of
status
and
in Rus¬
tool orders remained ixl doubt,
the AA-3 priority assigned
for
reconversion
sian
to be
tools
recent article
a
much
its
current
survey
of
The bulk of steel
trade.
of
mill
Truman, this trade
authority notes, has indicated that
case
Russian
approximated 25% for
the protocol
ever/it
agreed
lapsed."
ceived
con¬
and
upon
tools
of
the
be
30, 1945, the
protocol year,
current
delivered
10%
longer
by
steel.
orders
re
calling
r<4
indications
period
a
higher
a
lower
production
war
ment
leaves
are
tools
point to a
transition from
of
few weeks ago.
of
re
The
throughout the
1945.
status
the
armor platn
for shell
Sept. 30,
Thus, the President's state¬
the
cut'
cancellations
affected
Present
ered to them by June
end
cancella
of this year.
deliv¬
not
in
the'steel
during the past two
weeks
for deliveries
assured prior to
lend-lease
one
mainder
How¬
"the Russians
VE-Day that
continues,
th
con
tions, as a result of
military
backs, are still to come. In
cases.
"President
until
on
*
fusion, "The Iron Age"
reports
continued
shipments would be
t
producers to
rearrange their
schedules without too
$70,000,000
inadequate in certain
P
up.
;
'
by
week
past
degreed-
large
a
builders and the auto industry as
the
than
one
was
level to
expected
As fast
as
a
orders
taken off mill
schedules, other
scheduled for delivery during the orders involving war
material or
third quarter up in the air, and 1 war
supporting products are iim-
that probably involves some $40,-
j mediately substituted. Because of
j this situation there is a question
000,000 in Russian tool orders."
Doubt
the
over
status
the
of
\ as to the amount of steel that
may
Russian
be available for civilian
whether
after July 1. The possibility
exists
that there is apt to be at least
in
July and August a smaller amount
business, according to Mr.
Finney, hinges on the question of
not
or
the
with
war
they decide to do
be ho
for
reason
lease tool
Russians will
Japan.,
Should
holding
,
would' than
there
so,
up
lend-
shipments. In the
event
v
_
.
purposes
....
. ..
.
consumers have beOn
some
j tead to believe,
j
they do not, but international mat-
Unrated civilian orders for
de-
livery are not receiving much concontinue such j sideration these days on steel mill
shipments/ then again, such busi- j schedules despite continued pres-
ters dictate that
would
ness
we
not
be
disturbed. !
These
considerations,
adds, do not hold up
the
article
sure
by the automobile
J and manufacturers of
industry
the
more
official important household appliances,
decision on the matter, but make
[ according to the magazine. Openfor confusion over the reconverings for plates and structural in
any
.
sion tool situation.
jthe third quarter seem probable,
The largest cancellations of mil- but mill officials are reluctant to
itary orders the industry has had 'schedule unrated orders so far in
in many months, the
magazine re- 1 advance for fear CMP rated buy-*
veals, were witnessed in April. 1 ing may later shove them aside
These cancellations amounted to i with consequent embarrassment
$26:562,000, leaving the • industry
Sheet steel schedules the past
with a backlog of
$287,920,000, as week were still tightly packed
compared with
end
of
$309,650,000 at the
March.
New
orders
*of
$43,965,000 dropped below March's
$52,536,000 total, although ship¬
ments of
$40,331,000 were slightly
$39,374,000.
Notwithstanding sharp cuts in
military orders in April, the in¬
dustry, the magazine reports, is
above March's
confronted
business
with
on
seven
months'
hand, with AA-1 mil¬
itary and Russian orders still ob¬
structing reconversion tools.
Re¬
from
ports
several
Detroit
auto
on
that
companies have still
been unable to
livery
indicate
assured de¬
secure
hundreds-of needed
ma¬
v
through
the third quarter with
tonnage, causing uncertainty
over the
possibility that automo¬
bile makers may obtain much if
any sheet tonnage before the last
CMP
three
months
of
this
The
year.
from May into June of
undelivered
sheet
tonnage for
which earlier delivery had been
carryover
promised is
estimated
at
around
300,000 tons—an amount sufficient
to take care of the automobile
dustry's
in¬
scheduled
1945
production, "The Iron Age" states.
entire
,
"The availability of labor," the
magazine points out, "may be the
key, more than the steel supply,
chine
tools,
according
to
this as to when civilian
Alben W. Barkley, of Kentucky,1
production can
authority.
' f-.-r
;
get underway in full force. Heavy
majority leader, advanced a pro-'
A factor frequently overlooked
contract cutbacks in the Chicago
posal for $1,500 tax-free expense is
the continued
placing of new area for instance will
result mere¬
money as a possible compromise
military orders for tools required
on which Senate and House
ly: . in transferal of labor from
could in
plants in war production, as re¬
arms output of one type to plants
agree.
He argued this would be
placements, and for various new
in
effect
the 15%
increase
in
producing" other types of direct or
and special war uses.
However,
indirect
war
wages allowed under the "Little
equipment.
Farm
as
pointed
out
in
the
article,
Steel" formula. This was rejected
equipment and railroad car build¬
dwindling orders on some types
on a voice vote.
ers are
showing concern over this
of machines enable tool builders
A 43-to-9 roll call vote turned
particular
possibility.
Although
to even fill low-rated
orders,
but
down- - an
the automotive industry and ap¬
amendment; from
the
critical spots
remain in special
Senate Appropriations Committee
pliance groups have- been rather
items.
It
was
also
noted
that'
to
active in placing unrated orders,
give Senators $2,500 .expense
presses continue to be in a tight
other
civilian manufacturers have
allowance, subject to taxes:
.
The Senators knocked
down, 38
to
13,
committee proposal which
a
would have allowed
the
members
to deduct from income tax returns
all expenses for
lodging and sub¬
sistence
while
home
states
away
on
from
their
Congressional
business.
Finally, they defeated, 38 to 12,
amendment by Senator Bridges
for a flat $1,500
pay increase sub¬
ject to taxes.
an
position.
Labor, together with the critical
position of tin, rubber, lumber
and textiles, may also
prove a re¬
conversion
unions
intention
creases
stumbling block, since
already stated their
of
seeking wage
in¬
have
to
offset
of overtime in
to
the
40-hour
the
any
elimination
logical return
week.
continued
The
tight control
Finney concludes,
Mr.
OPA's
prices,
"may tie
on
up some reconversion if wages are
lifted
lot of Conservatives
who say that it may be
pretty rot¬
ten to give the warworkers in¬
are
re¬
Senator Styles
The Democratic National
Committee
his
system
world,
;
ques¬
political
not. be
the
willing to
and
They
the
the
declare
of the Senators
some
had Mr. Roosevelt submitted such
way
it
wondering, however, whether
were
one
$2,500
appropriations.
Privately,
Our observation is that
the
with ;?■What fhe other says
heeds
outcry has come
Truman's message,
it has aroused little comment
no
have
are promptly cleared
according to Mr. Finney in
in
was
shared
would
cannot be taken out in conference
,
general
subject,
is
return
"America
plaguin« th
tool situation
This opinion,
those
This
lowance in
<
No
v.
were
the old understanding of comity-^that one chamber does not inter¬
have
machine
tinued "to the extent
was
;
Most of
who* had
understood that with the reports
of their buying bonds, that is what
they were doing.
-
more
The Roosevelts created
roll
a
rejected by 28 to 22. The Senate
then passed the bill by a standing
velt's
divorce
family, a story
picture of drinking, was sup¬
or
lowance from the $51,000,000 leg¬
islative appropriations bill but on
should
inflated
this
didn't
al¬
members'
doubt they were moved by
so.
one.
Colorado,proposed
left
worried about any anti-American
stuff any longer.
to taking a
Johnson,
members
her hand.
Her old
C.
House
there's
given
Edwin
strike the House
to
it
be
photographed with a drink in
We don't know, frank¬
ly, whether the young woman is
Senator
support—was by Westbrook
Pegler who thinks these people
his
out
and
and
unemployment benefits for them
raised.
The only outraged com¬
new
a plain old Amer¬
being told. Over in
Arlington County, Virginia, just
across the
river, the good ladies
of the Baptist Church were thrilled
ican,
transition
war
reported from. Washington,
May 28, and continued:
He is con¬
being
dis¬
says.
their
placed and inconvenienced in the
Carlisle
Where¬
Mr. Truman
g.
about
Press
Democrat, of
'
-
.
plants and made around $100
during the war. They are
cerned
to, regulate
n
-
soldiers, too, he
stepped
the har.dshaki
days.
approved for themselves by
members, the Associated
House
his
in
week
a
of
one
President
consideration
for; those gallant
people who have gone out to the
His
excited,
and
one
former
to Congress asking for. new
sage
attendants be¬
them
dan¬
it packed un¬
more
one
Mr. Truman has sent up a mes¬
Secret Service
came
than the
the
latter
to
him.
possibly
but did nothing to interfere with
the $2,500 annual tax-free allow¬
ance
growing evidence that our reconversion program
may well delay indefinitely our
peacetime production, unless, as Burnham Finney of the
Machinist" observes, the major uncertainties
presently
•
being
Saturday
night, and im¬
mediately be¬
There is
countering difficulties that
By CARLISLE BARGERON
President Truman
Thursday, June 7,
1945
Taylor
to Return to Post
Although
it
is
reported
that
Myron C. Taylor, the President's
Dersonal
Vatican,
country
representative
is
for
at
the
returning
to
this
a
visit, the White
House
states,
according to the
Associated Press from Washington
May 31, that he will be here
merely
on
leave of absence
and,
wait
and
for
higher
manufacturers
price relief
costs."
to
must
offset
wage
Steel Industry—The progress of
cancellations in the steel industry
the
past week
gradual
and orderly basis, permitting steel
was
on
a
shown hesitancy in doing
on
a
likewise
scale because of . the
availability
pic¬
large
clouded
labor
ture."
'
Steel
cancellations
panded
to
a
figure
daily
'
ex¬
have
about
50% greater than that which was
current
on
VE-Day,
Age" notes. As
steel
orders
a
for
ments
about
consequence,
running
are
about two-thirds
h'°n
net
"The
as
most
great as
from
ship¬
producers
100% of shipments for
to
cer¬
heavily loaded mills. For the
industry as a whole, May WiU
probably be the first month in
tain
many
in
which
total
shipments
have exceeded orders.
The
American
Institute
Iron
announced
Steel
Tuesday
and
last
that the operating rate of steel
reporting to the President, companies (including 94% of the
on
his mission, would return to
industry) will be 91.1% of capacRome.
(Continued on page 2543)
after
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
-Number 4392
161
Trade-Wiih The-Enemy Bowles Offers
Trade Pact Extension Measure
House Passes
153'the House passed the bill to extend and
broaden the Reciprodal Trade program and defeated all the Repub¬
lican amendments which sought to limit the effects of the legislation
advices to the New York "Times" from Washington stated on May 26'
There was considerable controversy before final passage, and for a
time the issue hung in the balance while Democratic absenteeism
By a
vote of 239 to
aided the fierce
Republican oppo- ' this
power
Suggestions for Closer
Relationships Between Exec. Offices and Cong,,
Curbs Now Eased
The
Treasury
Department,
in
amendment to General Ruling
an
No.
of
11
10%, killed by voice
.
'
^
.
,
.
.
IX
1
In Statement
Chester
under the rates stipu¬
last Republican tariff
act, the Hawley-Smoot Law of
1930.
'
Before it was possible to rally
sufficient support for the measure
to
assure
its approval by the
House, President Truman sent a
strong
appeal for its passage
addressed
to
Speaker Ray burn
which the latter read from the
floor.
The President's message
read, according to the New York
to 50%
up
lated in the
.
gressional
moting
By Representative Reed of New
to grant to business men
the sending of Support
protesting a tariff program the
privilege of going to court to
challenge it—, killed by voice
up
vote.
"Times" report:
By Representative Barrett,
Re¬
publican, of Wyoming, to establish
Speaker:
a mandatory quota control in be¬
"Supplementing pur conversa¬
half of the American wool raiser
tion yesterday, I wish to repeat
'
that I regard the pending measure —, killed, 110 to 135.
"My dear Mr.
;
*
The most important amendment
renewal and strengthening
knocked out by point of order was
of the Trade Agreements Act as
one by Representative Bates, Re¬
of the first order of importance
for the success of my administra¬ publican, of Masachusetts, to bar
the
importation of
goods that
tion.
"I assume there is no doubt that might be sold in this country at
a price lower than the American
the act will be renewed. The real
for the
a
as
said:
"I
offer my
Con¬
comments on
own
the problem
ings should be held with the joint
government wartime execu¬
a
tive
have
the
taught me that
of administering
problems
j committees on a monthly basis or'
any
public,
never simple.
Our in¬
experience during the
are
tensified
has
war
great deal
government administration
about
taught
a
us
Individual committee.
tablished
permit
remittances
today,-these general licenses will
not apply to Austria, However, the
restrictions on the use of currency,
orders, checks and drafts
for
remittances still remain in
effect for all liberated areas.
crammed into the three war years
experience in government admin*
istration
that
would
normally
emphasized
with a
of the liberated countries
spread over a genera¬
the
"In
to
years
come,"
con¬
tinued Mr. Bowles, "both our eco¬
be
social democracy will
and
nomic
trial—not
on
The
some
watching
be
to
of
allow for
enough government,
do.
If,
as
problems
we
may
much.
able
and
do,
we
end
If
our
to carry
which
as
we
what
ad¬
proposed plan were es¬
as a general policy, each
we
up by having too
government is un¬
the responsibilities
a
people place in
to
group
which
it
would
regularly report.
With regular
monthly
meetings,
each group
would be kept fully informed on
the attitude and points of viev/
of the other.
4. An
opportunity for agency heads
meet directly
with Con¬
to
gress
As
see
fail
we approach these
peacetime, we fail
what
to
sional
people of many nationsskeptically and some hope¬
fully—will
to
here in
the world.
only
America, but all over
as
large bus¬
their board of
a
government bureau or department
would
have
its
own
Congres¬
tion."
money
that communication services
If this
"parent"
committees
with
work
iness
things that needed to be learned.
It is fair to say that we have
have been
or
ministrative heads of
directors.
learned
have
We
In a sense,
would work with this
we
committee
some
itself.
each
j on alternative months with
large operation, either private or
ing channels. Under Public Circu¬
lar No. 28, which was also issued
officials
before the ioir■t
reorganization and proferred seven suggestions for pro •
closer relationship and improved cooperation between the
Bowles
Mr.
to $500 a month through bank¬
Treasury
OPA Administrator, appeared
Bowles,
facing this Committee with con- <S>—
*
—
OPA executives and
siderable humility. Fifteen years tween the
in my own business before the <the members of the two commit,tees. I suggested that these meet¬
war and three and one-half years
principle—that is, to prohibit it erty located within fore 1gn
from granting to all foreign cus¬ countries.
It was stated that remittance
tomers the concessions granted to
one
customer
with
whom
the facilities to many of the areas are
United
States
makes
a
direct not yet available. When these fa¬
agreement—killed by voice vote. cilities are established, General
York,
on
Executive department and Congress.
tection and management of prop¬
Licenses Nos. 32 and 33 will
to
committee of both Houses of Congress conducting hearings on
*
applying the most favored nation
Joint Committee
Reorganization of
Congress, He Lists Seven Recommendations
its
trading-with-theenemy regulations, has removed
from the "enemy territory" cate¬
gory Norway, Denmark, the Net¬
herlands, Czechoslovakia, Yugo¬
slavia, Danzig, Austria and Al¬
bania, t according to the Journal
-
■"
v\-:
vote.
The principal bone of conten¬
By
Representative
Bailey,
tion centered round a proposal
by the late President Roosevelt, \ Democrat, of West Virginia, to
:of Commerce from Washington,
and supported by President Tru-jwrite into the
law the escape
May 28.
man, to give the Chief Executive clauses which are administratively
Treasury licenses will not be
npw'and broader powers to trim 1Iincluded? in trade agreements,
killed by voice vote:
needed
for the transmission of
tariffs in reciprocal trade agree¬
By Representative Pace, Demo¬ messages of a financial, commer¬
ments with other nations.
crat, of Georgia, to prohibit the cial or business character which
Specifically, according to the
importation of any agricultural are limited to the ascertainment
Associated Press reporting from
commodity which could be sold at of facts and exchange of infor¬
Washington, May 26, the measure
a price lower
than the "support" mation. However, communications
would
extend
the
Reciprocal
price being maintained for Ameri¬ which constitute or contain in¬
Trade Act of 1934 for three years
or
authorizations
to
can
production, killed by voice structions
beyond the June 12 expiration
effect financial or property trans¬
vote.
date, with an amendment empow¬
actions
will
continue
to
require
By Representative Nelly, Demo¬
ering'the President to cut duties
crat, of West Virginia, another ef¬ Treasury license. Attention was
up to 50%
below the rates pre¬ fort to exclude
pottery and glass¬ directed to General Licenses Nos.
vailing Jan. 1, 1945.
72A and 89, which authorize cer¬
ware killed by voice vote.
Under the present law the Pres¬
By Representative Gearhart, to tain transactional commnications
ident can trim tariffs, in exchange
prohibit the Administration from relating to patents and the pro¬
for concessions by other countries,
sition.
2535
Administrator
of
a
govern¬
I would personally
welcome the procedure suggested
ment
agency,
by the Kefauver Amendment. If
the head of each agency had an
additional
opportunity to appear
personally before Congress and to
answer
questions on his opera¬
tion, I am confident a great many
misunderstandings would vanish.
11' members of Congress at regular
intervals could come face to face
with the heads of the executive
its hands, tens of millions of peo¬
reopened. ple everywhere will begin to lose
their faith in effective democracy.
As
soon
as
arrangements
for
For all these reasons, the Com¬
transmitting transactional
com¬
mittee has selected a most oppor¬ departments, they could learn a.t
munications are established with
tune time to examine the opera¬ first hand something of the prob¬
any
country
affected
by
today's
cost of production.
tion of Congress and its relation¬ lems to which solutions must be
question is whether the renewal is
action,
the
Treasury
Department
Upon the House's passage of the
found.
to be in such form as to make the
will be prepared, in appropriate ship to the Executive Branch of
the government."
act effective. For that purpose the bill, Joseph C. Grew, Acting Sec¬
cases, to license withdrawls from
larger
personal staff for
5. A
enlargement of authority provided retary of State, made the follow¬ blocked accounts in the United
Mr. Bowles then offered seven
members of Congress
ing comment: *
' '
*
by Section 2 of the pending bill
suggestions which
he
"The vote in the House of Rep¬ States to pay claims against per¬ separate
Members of the Senate and The
is essential,
*
sons in the country involved.
In said were mostly closely inter¬ House are the
resentatives today on the trade
major contact be¬
"I have had drawn to my atten¬
related.
These
were:
general, an application for such
tween their constituents and the
agreements program will hearten
tion statements to the efect that
a license should be
supported by
every friend of international co¬
1. A program to streamline the Federal Government. As a result,
this increased authority might be
a
payment instruction or other
operation. The power granted by
they
receive each
year
many
executive agencies
used in such a way as to endanger
acknowledgement
by
the
debtor
this legislation, wisely used, can
thousands of letters and requests
or 'trade out' segments of Ameri¬
During the next two years, the
executed after May 29, 1945. If
for special information.
can
industry, American agricul¬ greatly promote prosperity in the an application, is based on a court responsibilities
of the
various
United States and throughout the
In my opinion, a good part of
ture or American labor. No such
wartime
agencies
will
rapidly
judgment,
evidence
•
should
be
world."
action was taken under President
The rate by which the the load which every conscien¬
submitted that the debtor has re¬ lessen.
It is generally conceded that the
Roosevelt and Cordell Hull and
diminishes will vary tious Senator and Congressman
ceived actual notice of the pro¬ workload
no
such action will take place legislation will meet with stiff ceedings and has had a reasonable between agencies. As quickly as faces at present could be handled
opposiion in the Senate, and Ad¬
under my Presidency."
the
workload
drops below the by a capable assistant who would
ministration
supporters
are
al¬ opportunity to appear.
Three of the proposed amend¬
level
requiring specialized
at¬ represent the Senator or Con¬
ready preparing themselves for a
ments were declared by Admini¬
tention, I feel that these war gressman in his dealings with va¬
number
have
not actually been
>
according to the fight of considerable proportions.
(Previous reference to House
stration leaders,
"Times"
wounds
report, to mean mortal
for the reciprocal trade
program.
One, the report stated, by Rep¬
Knutson
(R.-Minn.),
resentative
period of ex¬
tension of thje act from three years
to two.
Thik fell, 135 to 152.
Another, regarded by the Ad¬
ministration as the most damag¬
ing, also offered by Mr. Knutson,
would
have
eliminated
the
would have cut the
Administration's
tariff reductions
power to make
beyond those al¬
ready in effect. This was
defeated
174 to 197.
The third of the
major amend¬
^Representative
Gearhart, Republican, of Califor¬
nia, would have given Congress
ments
a
offered
by
veto power over
all trade agree¬
to 125.;
This failed, 106
ments.
Other
amendments
disposed of:
were
thus
•.
By
Representative
Bailey,
Democrat, of West Virginia, to ex¬
'
painted earthenware
and pottery from the reciprocal
program, killed by voice vote.
By Representative Reed, Repub¬
lican, of New York, to kill the
bill by striking out the enacting
clause, lost by voice vote.
:
By Representative Judd. Re¬
clude
hand
publican, of Minnesota, to reduce
of 50% the Admin¬
to 25% instead
further
tariff cuts, defeated 81 to 108.
By Representative Case, Repub¬
lican, of South Dakota, to reduce
istration's power
*
to make
■
action
on
the tariff extension pro¬
posals was made in our issue
May 24, page 2313.)
of
111. and Wis. Loans
High
April was the most active loan
month so far in 1945, A. R. Gard¬
ner,
President
Home Loan
of
the
Federal
Bank of Chicago, re¬
should
agencies
into th old-line
ments.
'
be incorporated
executive depart¬
'• *
'
.
2. An adequate
staff for all major
Congressional Committees
to the Federal
Administration
The responsibilities which these
Senate Group Votes
at Washington. Advances to Illi¬
committees carry today are tre¬
to Continue OPA
nois, and Wisconsin savings, build¬ mendous. With so many Senators
The bill to extend price and ing and loan associations were and Representatives serving on
wage
controls for another year $1,416,690, a 37% increase over several committees, each dealing
March aenvity, and more than with vital phases of our national
has been approved by the Senate
Banking Committee, according to three times the volume for April, affairs, it is impossible for the
1944.
advices to the New York "Times"
average
member to keep thor¬
Mr. Gardner said that the bank
from Washington, May 29. Amend¬
oughly abreast of all the prob¬
which
supplements the savings in¬ lems on which he is expected to
ments were turned down which
vested locally in these thrift and be an expert.
would have limited the extension
home
financing institutions has
to six months and forced revision
A
skilled
economic and re¬
had only one April in its 12-year
of OPA price policies on agri¬
search staff with expert counsel
history
in
which
a
larger
sum
was
cultural commodities.
would be most helpful to the va¬
It is expected that the bill faces advanced. That was in 1943, when rious committee members in di¬
a
battle on the Senate floor, the advances reached $2,135,333.
gesting the material on which
He
expects the demands for
chief issue being an amendment
policy decisions must be made.
funds from this regional reserve
The Executive Branch of the de¬
sponsored
by Chairman Elmer
institution
to
run' consistently
Thomas (D.-Okla.) of the Senate
partments and bureaus have such
ahead of last year from now on.
staffs.
There is no reason why
Agricultural
Committee
which
The post V-E relaxation of War
would force the OPA to guarantee
t h e
Congressional
committees
Production
Board
restrictions,
a "reasonable" profit to processors
should not be at least equally
coming first in materials for mod¬ well
of agricultural products.
equipped.
ernizing and repairing homes, and
Senator Robert F. Wagner (D.the already provided for veterans' 3. A
Congressional
"Advisory"
N. Y.) told reporters, after an ex¬
Committee for each Execu¬
ecutive session at which Price Ad¬ priorities on home building ma¬
terials
voted
in
the
Appropriations
tive
Department
or
Bureau
ministrator Chester Bowles and
Economic
Stabilization Director Act just signed by the President,
A year
#ago I proposed to the
are among the factors which will
William H. Davis testified, that
Senate and House Banking and
food price controls would prob¬ give these local home lending in¬
stitutions need for more funds, Currency Committees which con¬
ably have to be retained until
some of which will be obtained
sider the OPA legislation a series
1950, according to United Press
from their 1 Federal Home Loan
statements from Washington on
on May 28
Home Loan Bank
ported
May 30.
Bank, he said.
of informal
monthly meetings
be-
government
agencies on
his constituents.
Another
capable staff member
should, it seems to me, be avail¬
able to study legislation and to
rious
matters affecting
develop research and
speech ma¬
terial.
6.
Bringing more
into
capable people
government
During the last generation, and
particularly during the war years,
many capable men have been in¬
troduced
to
government work,
both in the legislative and the
executive branch.
This trend, it
seems to me, must be encouraged
in every way
possible.
public information
7. A
As
a
gest
a
miteee
gress.
final point, I
Public Information Comestablished in the Con¬
It is an old true saying
that democracy
edge.
have
committee
would Sug¬
thrives on knowl¬
Given full information, I
an abiding faith in the ca¬
pacity of the
arrive
at
Congress,
American people to
correct decisions. ,The
as
the people's repre¬
the
If a
Public
Information
Committee
could sift the product of studies
sentative,
free flow
could
committees and report
findings, I think
results would soon be felt.
by other
accurately such
the
guarantee
of this information.
2536
THE COMMERCIAL & FINANCIAL CHRONICLE
have
acquired their, import¬
by ^reason of the con¬
flicting
interests • * of ■> great
powers in the locality or the
The Financial Situation
(Continued
t
the
politician is chiefly
from first
con¬
page)
another
"World
War" with¬
in the life span
of
Nor
ance
issues involved " in these (of
of us
themselves)
minor conflicts.
ly that the state of mind in now living will, in our view,
this country concerning the be achieved, if achieved at
The Real Factors
doings at San Francisco is in all, in a wholly different way
5 Now we venture the sug¬
rather
very substantial part an out¬ and
largely: if not gestion that whether or not
growth of a "sense of guilt" wholly independent of the go¬ the British
Empire,' the
over
our
attitude
toward ings on in;; the West Coast
United States and Russia can
world
affairs
after
World city..;
live peaceably together dur¬
War I, which the Roosevelt
If
we
may
assume
that ing the next half dozen dec¬
Administration carefully cul¬
presently Japan will be as ades will be little influenced
tivated for years on end.
Of
thoroughly defeated as was by any mechanism brought
course, our "sins" of the 1920s
Germany, and
that
both into being at San Francisco—
and early 1930s — and being
Japan and Germany will be and probably little by any
human
we
have
our
due
placed in a position in which agreement reached in that
quota of transgressions to re¬
they can not again wage large city. The difficulty being ex¬
gret—are of an order quite scale
war, and kept in such a perienced in reaching under¬
different from that indicated
position for, say, a half cen¬ standings at vital points sim¬
in New Deal propaganda, and
tury or so, the only danger of ply reflects differences either
they have very little to do war on a
world-wide, or even in interests or in suitable
with anything which is tak¬
a
very large scale within that ways and means of protect¬
ing place in San Francisco
period will depend first, upon ing these interests. This is
today.
whether the United
States, wholesome enough in a sense.
cerned about. It is not unlike¬
Thursday, June
-
1945
Ogpu, Either!
an
(Continued from first page)
feeling that
few
a
of the many.
any
tion for any
profiting from the sacrifices
that there is no justifica¬
were
We must
see
such feeling, and that is just what
\ye
going to do."—President Truman.
are
The
President, of course, is correct in
that the American
evaders
believing
people do not wish either
tax
"black market" operators.
or
.
.
But
.
however
all
this
may
be, however false impressions
and unsound beliefs may have
come into
being, the attitude
of
the
national
Administra¬
tion, of
a great majority of
politicians, including a
majority of the so-called op¬
position party, and apparent¬
ly of most of the people of
this country — if one may
judge from what one sees in
print and hears on all sides—
the
is very seriously to be regret¬
ted. In the first place it is now
evident that not
the
British
Empire and Rus¬
sia find it possible to live in
with
peace
one
another.
In¬
deed, ^whether or not Ger¬
and Japan are effective¬
ly rendered impotent over a
long period of years will de¬
pend in large measure upon
this same thing—the ability
of the so-called "Big Three"
of this day and time to live in
harmony. It is conceivable, of
course, that France may re¬
many
a world
position suffi¬
ciently important and influ¬
cover
reflects
It
not
to
which
determination
a
enter
future
agreements
conditions
would not permit
the parties
thereto to honor.
us
mechanism
power¬
are
cer¬
It is to be hoped, they
While
tends
inquisition,
no
ments
to an Ogpu.
feel very
we
certain that the President in¬
a
good
War
T.
Foreign Economic
Crowley,
real
a
at
papers
it may give
case, or
of
j risk anything in the
nature of
16
separate
conduct the
ill-will
wave
and
real isolationism—as
the
to
which
phony
days — and to other
types of action which would
neither
the world
good.
any great
nor
us
!
;
The Essential
vs
Russia had
It is
even
such
in the absence of
course
this,
as
of events at
decades
aggressive
could
an
and
acquire
attitude that
menace
of the world
the
peace
directly, but it is
obvious that such is not
very
of
vost
the
University
of
Cali¬
fornia at Los Angeles, will address
the opening session Monday eve¬
ning, June 11., The Society and
the University are
cooperating in
Conference
a
to
.
five
or
the
so
developments
the whole
"parted ways."
conceivable, too, that
might rise to such
China
she
But
somehow,
eminence within the next four
Incidental
'■*
that
against somewhere, the United
being said States, Great Britain and
these
do
mean
kind
much is
so
opposed
course
the
as
effort.
war
contribution
a
;
and capacity of Japan in relation to her
there
will
turbines
be
two
papers
on
gas
and
jet propulsion, both
illustrated by films. M. J. Zucrow,
Executive Engineer, Aeroject En¬
gineering Corp., Azusa, Cal., will
discuss "Jet Propulsion Principles
and
Rockets
off."
for
Colonel
Assisted
Take¬
Home#
Boushey,
likely to be the case, and that
Commanding Officer, 412th
Francisco, including par¬ the real
danger in China—
Fighter Group, Bakersfield Army
ticularly the danger of fail¬ granted Japan
definitely out Air
San
ure
which is at this time
quite
evident, have tended and are
today tending definitely and
regrettably to divert thought
about the future peace of the
world
from
the
essential
to
the .incidental and mechanis¬
tic. At the risk of
sidered
hard,"
unpatriotic,
or
pleasant,
that
being
a
con¬
"die¬
something else
we venture
neither
the idea
agreements
reached at San Francisco
mechanisms
un¬
there
nor
devised
will in the
years to come be
of very much
consequence in
the determination
of
the
course
of world affairs
the maintenance
world
peace.
or
or
breach of
Avoidance
in
of
Field,
of the
Bakersfield, Cal., will
picture—is that, as has
speak
on
"Jet
Propelled
happened in the"past,
planes."
-j
the great powers, this time
The meetings on Tuesday
the United States, Great Brit¬
ning will be
devoted to
ain and Russia, will fall out
so
often
transfer,
themselves
among
"concessions"
about
and
other
things of value to be obtained
from
China
and
from
the
Big Three
can
rubber
every
point.
Let it be
care¬
fully observed that the "little
wars" which in the
past
threatened
wars,. or
to
even
become
world
have
A
second
will
heat
be held
plastics,
in¬
management,
on
gas
transfer
session
Wednesday evening,
simultaneously
,
with' sessions
production,
and
turbines
a second
and
jet
on
metals
meeting
propul¬
sion.
On
ing
Thursday evening, conclud¬
sessions
transfer,
great applied
wars,
and
heat
quality
plied mechanics.
get on together through the engineering
decades—as it does at almost
and
plants.
will
take
production,
mechanics
up
heat
hydraulics,
and
power
to
severe military reverses and
damagmonths, her pro-<$>
capacity is such that she is made, aluminous ores in
Japan
still
is
able
to
wage
long war.
a
large portion of the war indus¬
try she had at Pearly Harbor is
At
intact.
that
industry
time, Japanese
organized to
was
and
have
inner
of
of
Japan
proper,
parts
some
In
this
industries exist
capable of producing for many
months
finished
war
products,
and irt addition key raw materials
synthetic oil plants, all
well
organized
and
well
staffed,
important contributors to the
Japanese war effort.
are
In
the
months
Harbor the
tary
aggresion
East
Indies
following Pearl
Japanese mili¬
of
area
extended
and
to
to
the
Burma.
Against the great area occupied
by the Japanese, Allied advances
have
been
effective
at
certain
strategic points.
ever,
The Allies, how¬
have liberated less
far
so
% of the total of nearly
miles of con¬
seven
3,000,000
.
square
quered territory controlled by the
enemy. But we have scored major
in
successes
almost
completely
cutting Japan off from such
material
tin
resources
available
Indies,
to
her
Malaya
raw
as
rubber, oil
formerly were
and fibers that
from
and
the
the
East
Philip-
pines.
Japan, nevertheless, still
in
ses
raw
her
inner
zone
posses¬
important
material
resources, substi¬
tutes and synthetics. For
example,
synthetic oil plants were estab¬
in
difficulties
attacks.
supplies
These
iron-ore
replaced in the Jap¬
are
economic
anese
war
machine by
production from newly opened or
newly expanded areas in Man¬
„
churia
and China, and
by utiliz¬
ing, through a new concentration
process, the plentiful though rel¬
atively poor iron ores in north¬
east Korea.
With
/
the
'
allied
advances
and
other
terials
the
loss
comes
the
of
chrome
because
are
and
of
to
Japan
to
these plants in 1944
capacity
was more
21,000,000 barrels
of
With
the
of
the
her
of
loss
her
and
merchant
quantity
meet
of
Navy
be
may
requirements
proximately
Japanese
reduced
The
loss
thus
of
war
major
the
oil
marine,
for
of
from
the
tons
remaining
of
less
this
to
ap¬
meet
war
the
on
the
of
Thailand, Burma,
to the
the
Japanese. This will increase
difficulties
short
will
the
food
not
of
supply
;
southern
bauxite, from
areas
was
cut
supplies
which aluminum
present
the
Japan, but
in
interfere with
effort and will not result
seriously
war
in
starvation
Practically
in
inner
the
the
whole
zone.
the
of
processing capacity of the Japan¬
Empire, as well as adequate
supplies of raw materials, lies in
ese
the
in
inner
terms
areas.
of
centers and
has
been
It
is
individual
true that
industrial
plants, bomb damage
devasting, and many
miles
square
of
such
cities
as
Tokyo, Nagoya, Osaka, and Kobe,
all
vital
to
Japan's
planes
effort,
war
Great air¬
irre¬
suffered
have
parable
damage; arsenals have
demolished; power plants
marshalling
yards
have
seriously gutted and dis¬
been
and
been
organized.
To meet this threat from the
air, however, Japanese war lead¬
ers
long ago placed in operation
an
extensive
dispersal program.
Plants
maintaining the Jap¬
effort.
rice
largely
now
occupied by Allied forces, and
Indo-China will not be available
secluded
importance
attacks
lanes to Japan, the
sea
in
Indies
quantities.
require¬
ments for many months. *
As a result of Allied
of
operations.
Similarly, when Japan
off
part
reduction
.sufficient
of
area
becomes of
in terms
anese
of
primary oil.
the
2,000,000
shipping
the
of
than
have been
in
craft
estimated
substitute
rubber from the
reported
in
sufficient
ma¬
With
Philippines, the
position be¬
difficult, but not im¬
Tin
stocked
these
zone.
copper
more
metals.
south
inner
the
and
possible
of
sources
in
have been laid waste.
maximum
in
Burma, the available supply of
tungsten, lead, zinc and nickel is
reduced, but there are stockpiles
petroleum, the
materials
de¬
Philippines and transpor¬
resulting from
tation
Japan proper, Korea,
Formosa, Manchuria and China to
produce
substitutes
for
natural
most critical of the
from the south.
The
were
falling off for many
because of the liberation
the
Allied
zone,
continent
been
months
zone
the
on
veloped as substitutes sources of
supply. Supplies of the rich iron
ore of
Malaya and the Philippines
operate efficiently in the so-called
lished
eve¬
struments and regulators, and ap¬
the
Chinese. So the matter here,
too, comes down in the end to
whether
control,
standards
Air¬
ability
war:
Although Japan has suffered
than
\ !
Following Dr. Dykstra's address
26
attacks in recent
meetings.
The Conference is under auspices
of the Southern California Sec¬
pessimism, I a major war for a long, long
tion of the ASME. Sessions, start¬
cynicism in this time to come unless they have
ing at 7 P.M. each evening, are
someone
of
the
country which would be all
Big Three on open to the public.
too apt to lead to
policies of their side—which would of
Dr. Clarence A. Dykstra, Pro¬
a
May
and
industrial power
consequence
really the
on
public the following summary prepared by the Enemy
Branch
of the Foreign Economic Administration on the present
economic
;
rise to
Administrator,
made
great deal ential to be the instrument of the American Society of Me¬
chanical
Engineers, to be held are available for expanded pro¬
will be through which the peace of here June 11 to 14 at the Uni¬ duction. More than
one-third of
the
world
is
accomplished at San Fran¬
again shattered versity of California at Los An¬ Japanese pig-iron capacity, more
cisco. This paucity of real ac¬ sometime
during the next geles, will bring together in the than 16% of the steel-ingot capa¬
complishment may lead to a half century, but the French, four evening sessions of the pro¬ city, nearly 10% of the rollingmill capacity, more than half of
gram some of Southern Califor¬
propaganda
campaign
de¬ though far from friendly to nia's
outstanding technical men the coke-oven carbonizing capa¬
signed to disguise this "fail¬ the British and certainly now in the aircraft industry.
New city are located in Manchuria,
ure/' to make whatever is ac¬ acting in a strange manner aircraft techniques and a projec¬ Korea and occupied China.
In
complished appear of far upon many occasions, are not tion of post war plans for the in¬ addition, in these areas, a large
dustry will be discussed in 38 chemical industry, arsenals, air¬
greater significance than is likely to be in a position to
craft and
of
develop¬
observation.
an
Japan's Economic and Industrial Status
Leo
Korea, Manchuria and
Conference
many recent
suggest the need of such
of North China.
To Show New Technic
will
have to make the
market" operators
war
Air War Conference
Aviation
things, too, that the American
A
more
tain to control the future.
The
other
are
choice, but if they do
they
will prefer tax evaders to a Gestapo and
"black
never
ductive
But it likewise reminds
that factors far
ful than
But there
people do not want.
have
and
have
established in
been
localities
protected
by
widely
been
in
ravines
some
areas
and
hills,
dispersed industries
developed in Korea,
Manchuria and
China.
In
recent
months the dispersal program
been
has
and in some
localities key plants have been
put underground.
accelerated,
.
.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4392
161
Volume
Private Industry and Home Financing Institutions
Can Handle Housing Heeds, Eason Declares
Consolidated plant production will
end with this month's output."
WASHINGTON, D. C.—George M. Eason, of Los Angeles, Calif.,
took office June 4 as President of the National Savings and Loan
League, stated in a message to member savings and loan associations
trade organization that the government should get out of the
of building homes immediately, declaring that private indus¬
and private home financing institutions can well handle the
of that
business
housing needs 9the
nation.
"We
must
of
out
ernment
busi¬
the
of
ness
of build¬
homes
ing
with
taxpay¬
ers'
money,"
Mr. Eason de¬
clared. "There
a
plentiful
supply
of
is
funds
in
sav¬
ings and loan
iations
a s s o c
other
and
mortgage
George
M. Eason
ample for the
lending
insti¬
tutions
which
is
more
than
largest home build¬
ing program this country .can con¬
ceive.
There is no sense and no
for
need
more
any
Government to do
the
for persons
'housing construction'
able to pay for their
shelter."
own
Taking office at
the same time
who is President
of the Standard Federal Savings
and Loan Association in Los An¬
with Mr. Eason,
national
the
of
ficers
M.
Bell
1, 1946."
P-63—"Two
types of the
produced at Buffalo, one
the regular fighter, and the other
P-63
are
craft to be shot at with frangible
bullets, used in training of pilots
Natick,
Glidden,
in
Washington where it was stated
today that. there, is a much im¬
proved outlook for construction
this year. Officials of the League
"As it looks now, after discus¬
sing the matter with Government
at least
probably
there
will be
250,000 homes built within
and if the
lumber situation eases, there may
the
next
12
"Production
the
regular
fighter will be cut substantially
by July and eliminated by Sept. 1.
said:
officials,
V
and gunners.
League has its headquarters here
months,
be
425,000
homes
started
or
planned for construction in that
period.
Production
of
of
the
P-63
equipped
with target indicator devices used
for
training will continue virtu¬
ally unchanged for the remainder
the
of
and
year,
on
reduced
a
schedule through the first half of
1946."
Douglas C-47 — "Production of
this cargo plane at Oklahoma City
will taper gradually until Decem¬
ber and continue during 1946 at a
rate
approximately half that orig¬
inally scheduled,"
for lumber
Beech C-45—"Made at Wichita,
for boxing up its huge supplies in
Kan., this plane will continue in
Europe for transfer to the Pacific
production with little change until
is the big problem now, but we
fall; when the output will begin
should
know
soon
how much
tapering and continue into 1946 at
American lumber will be needed."
"Need of the. Army
approximately half the scheduled
The
that up¬
wards of 7,000,000 home loans will
expects
League
to
under
veterans
be
made
GI
Act in the
years
the
ahead, and
using present statistics as a gauge,
estimates that savings and loan
associations will make the bulk
of these loans.
Up to 'the present
time, official figures of the Gov¬
ernment show that the associa¬
organiza¬
~
tion:
S.
The National Savings and Loan
following other of¬
geles, are the
present level,
At the Tulsa
plant production will taper off
and terminate by Jan.
Mass., Secretary.
Gov¬
the
get
the
a
John
tions have made all hut a fraction
Raymond P. Harold, Worcester,
home
the
of
[Mass.,: and Curtis F. Scott, New
(Orleans, La., Vice-Presidents; and
the
loans
rate."
*
C-46
Curtis
■
"Production
—
at
the Louisville plant will end
with
June's output. The St. Louis plant
will
terminate
after June
final
production
deliveries and
resume
output of parts only. After June,
the C-46 will be produced only at
the Buffalo plant, where the out¬
will
continue
unchanged
through June, decline in July and
put
approved by August, and level off at approxi¬
mately two-thirds of the current
Veterans' Administration.
schedule rate."
Some B-17's
Airplane Production Cuts ilnnsunced by War Dept
Will Be Made
Boeing B-17—"This plane now
is
the report
"Times" continued ?
requirements
be¬
in lend-lease,
"Decreased
of
cause
revisions
brought about by the
hostilities in
sible for a
cessation of
Europe, are respon¬
substantial percentage
schedule
changes," the Army said, adding:
"The remainder of. the cutback
came from reduction in Air Force
the
of
new
production
.requirements for a one-front war.
Until the termination of the war
Europe it was impossible to
accurately how many planes
in
assess
would
be
available
for
further
fighting,"
aircraft manu¬
Gen. H. H.
Arnold, Commander of the Army
Air Forces, praised the industry
for
furnishing
"the planes we
asked when we asked for them."
"And you well know the vital
part those planes played in win¬
In
a
to
message
production cuts was not dis¬
Army, but estimated
by other government sources at
$4,000,000,000,
according
to
a
Washington Associated Press dis¬
patch of May 25, which added:
the
by stating:
facturers and workers,
closed by the
produced at two plants, Douglas
previous air¬
craft reduction ordered April 18,
these- sources said the cut amount¬
ed to at least 30% on an annual
Combined
with
a
Yearly outlays for aircraft
have been running about $15,000,basis.
Applying the 30% to this
give a figure of $4,500,-
000,000.
would
000,000.
Detailed manpower
figures were
lacking, but War Manpower
mission
officials
Com¬
estimated that
200,000
the cuts would take some
workers off aircraft plant
payrolls
by the end of the year in a dozen
cities.
The number was called an
estimate
on
the
basis
of
Europe," he said.
Japanese.
'
"We
more
do
not
aircraft
propose
to ask for
than are necessary
plete information.
Both
Army
and
which
August."
P-80
Lockheed
will
—
"Production
unchanged at the
Burbank plant. North
continue
Lockheed
American had planned
on' the
Kansas
Kansas
production
in 1945 at its
City plant. Production at
City has been cancelled."
Pr80 ^1ate
Lockheed P-38—"Production on
the
had
been
Under
Lockheed
originally
P-38
scheduled to end by 1946.
the
revised
by
schedule,
P-38 production to zero
will taper
November.
its Nashville
Consolidated, at
plant, will terminate
production after June."
It
was
duction
and
disclosed
schedules
engines
that new pro¬
for
propellers
also are being pre¬
pared.
incom¬
production
sources emphasized
that most of
"Now. tactical and strategic re¬
the cuts are on a tapered basis,
quirements are changed.
Our at¬ so
that layoffs will be more or less
trition rate in Europe decreased as
the Luftwaffe was destroyed, so gradual.
One efect of the reduction in
many of the planes that fought in
plane output will be the release
Europe .will fight again against
of vast quantities of aluminum,
the
ning the war in
ly one-quarter of the current rate,
Lockheed will halt B-17 produc¬
tion in
presumably can go into ci¬
Another item will be
vilian gods.
Censcrskip Rules
Allied
have been
censorship
Relaxed
regulations
sharply revised to per¬
of post-war
news from Europe and a general
relaxation of news control insofar
as
military security in the war
with Japan permits, the Associa¬
ted
Press reported
from Paris,
mit broadest coverage
May 31.
considerable
amounts of highBroadly, the instructions call
prosecution of the
grade steel no longer needed for for censorship on only three prin¬
war.
We are, therefore, cutting
aircraft.
One production source cipal points:
back production where possible
said the release of steel might run
Major troop movements, includ¬
consistent with our goal of win¬
to 50,000 tons in the last half of
ing
the identification of units
ning the war as quickly as possi¬
this year.
moving directly to the Pacific or
ble with a minimum loss of life."
The revised schedules for indi¬ destined
for movement to",: the
Most of the country's principal
vidual model planes, according to Pacific, their estimated strength
aircraft manufacturers were af¬
the above mentioned New York and the like.
fected in the order, which also
"Times" advices, are as follows:
Details connected
with major
emphasized the need for larger
Boeing B-29—"Production will
troop movements. In addition to
planes for use against Japan. For
increase for several months and
routes and method of transporta¬
example, production will be cen¬
will
be
sustained substantially
tered on the Superfortress B-29,
tion, it includes hitherto undis¬
above the present rate of output."
closed tactics and methods and
rather than on the other bomber
Consolidated B-32—"Production
equipment, Allied or German, that
types. Fighter and cargo ships re¬
at the Fort Worth Consolidated
might be used against Japan.
maining in large production, the
Army said, will be those of the! plant will be leveled off at
Matters of high military impor¬
long-range types suitable for the current rate for the remainder ol tance that may require reference
Pacific war.
| 1945, and will terminate at the to the Supreme Commander.
v The financial saving involved in
end of the year. At the San Diego
for
successful
the
Fred M, Vinson, War Mobilization Director
,
War Mobilization Director, Fred M. Vinson, has expressed his
„
lull
of legislation designed to
support
the
alleviate unemployment in
planning by Government of
post-war period through a partial
jobs and production, according to advices to the New York "Times."
from Washington June
3.
'
■
The following is the text of the letter, as given by the New York
"Times," addressed by Mr. Vinson^
—>
-<•(D.- imperative that we find ways and
Y.), Chairman of the Senate means to provide jobs for those
De¬
Banking Committee, who is co- willing and able to work.
pressions are not acts of God, any
sponsor of the proposed bill:
more
than wars are.
They are
This is in response to your let¬
the product of our man-made in¬
ter of April 9, concerning S. 380,
stitutions and the way we organ¬
a
bill
"to establish a
national
ize our society. We can and must
policy and program for assuring
organize to prevent both.
continuing full employment in a
to Senator Robert F. Wagner
N.
free
competitive economy through
efforts of industry,
the concerted
agriculture, labor, State and local
governments,
and
the
Federal
Governments."
1
to
Next
victory
a
in
most
Japan, a
after the
job
well-paid
first
speedy and complete
over
minds
the
that
demonstrated
and
The
Americans.
our
steady,
is
war
hearts
war
of
has
economic
system can provide jobs when de¬
mand for its product exists.
It
has done more.
It has opened the
of all of us to the vast pro¬
ductivity of which American la¬
bor and the American genius for
eyes
and management-rteam—are capable.
organization
working
as a
We
jobs—this productiv¬
ity—has been achieved in war¬
time through the creation of an
unlimited market by the Govern¬
ment.
To
reach
and
maintain
high levels of employment and a
steadily rising standard of living
in peactime will call for a pro¬
gram suited to peacetime condi¬
In this program
tions and needs.
prepared to make
must
At the same time, we
be jealous of any encroach¬
ment
on
National
freedoms.
our
policies must not be al¬
lowed to develop into regimenta¬
tion of business, or labor, or agri¬
culture, nor of the people. Direc¬
tion of private output by public
authority in peacetime is repug¬
nant to American ways of thought.
Instead
the
maximum
possible
agriculture, labor and
local, State and Federal Govern¬
ments must all play their parts.
We know we have an abun¬
dance
of resources, plant, man-
must
freedom
afforded
be
every
produce what he
wishes, in the amounts for which
he can best find a profitable mar¬
ket.
Given an adequate market,
to
producer
be
sure
the
We
will supply
employment.
producers
goods and the
our
can
But these
be
must
changes.
economic
,
,
business,
the War Department, at
Long Beach and Lockheed at
according to advices from Washington to the New York "Times," May
Burbank, Calif. Production at the
25, will i;educe scheduled output over the next 18 months by 17,000 Douglas plant, where 50% cut¬
planes.
Effect of the cutbacks will be to reduce output in the last back already had been planned,
half of this year 30% below the first half year; the shrinkage will
will be tapered further and sta¬
amount to 40% in the first half of 1946 and :45% .in the latter hajf. bilised
by August at approximate¬
Airplane production cutbacks, announced by
The New York
Employment" Bill Supported by
Douglas A-26—"Production at
the Long1 Beach, Calif., facility
will
continue
at
approximately
who
try
"Full
2537
of that.
cannot, however, leave the
creation of that market to chance.
We
must
We
what
start
to
now
find
needed
are
measures
maintain markets and steady
S.
380
sent
a
the
for
out
to
jobs.
not profess to pre¬
does
fully conceived program
achievement of full em¬
ployment.
It is the necessary first
step from which a full dress pro¬
gram
mote
of economic policies to i)rothe well-being of our free
competitive economy will stem.
As
a
member
former
Con-
of
and managerial know-how «gross, I have certain general reto produce a standard of living
actions to the bill. I regard it as
desirable that such a bill should
far higher than anything we have
limit itself to providing the ma¬
eye.r knowp. Likewise, we know
that we. have unfilled-, needs in chinery to be followed,to assist
America so diverse and so great in arriving at national policy and
as
to challenge the capacity of full employment, rather than at¬
even
the greatest producing na¬
tempting to specify in advance
tion on earth.
policy measures to be used to
But needs are not demands, in meet future conditions.
the economic sense.
People must
I believe it wise to leave to ,the
power
must want to
income and they
spend their income
before
..
have
steady
President
in
discretion
full
the
matter of preparing estimates' of
become demands the "national production and em¬
and people become customers.
ployment budget."
ti::y v * ''•i.pv.
Busiriess management, l'arge and
And I regard the consideration
small, has a great opportunity and of
proposed measures by a Con¬
a
great challenge to help create
gressional joint committee, which
these steady incomes, and to ac¬
can analyze the interrelationships
tuate demand by expanding their
between the various matters of
businesses, offering better goods
special concern to the House and
and services at attractive prices.
Senate committees represented, as
Labor
and
agriculture through
an
important step in the process
their efforts to increase produc¬
of preparing
national policy to
tion per man-hour can contribute
maintain full employment.
importantly to higher incomes and
I heartily endorse the purposes
a higher stand of living.
and principles of the bill.
But history shows us that busi¬
ness, labor and agriculture can¬
not in themselves assure the main¬
House
tenance of high levels of produc¬
tion and employment.
The Gov¬
ernment, acting on behalf of all Gold
the people, must assume this re¬
Legislation reducing from 40 to
sponsibility and take measures
25% the requirements of gold re¬
broad enough to meet the issues.
serves to be held by Federal Re¬
Only by looking at the economy
serve
banks against Federal Re¬
as a whole, and adopting national
serve
notes
in
circulation was
economic policies which will ac¬
passed by the House, the Asso¬
tively promote and encourage the
ciated Press reported ffom Wash¬
expansion of business and the
,
needs
Votes to Reduce
Requirements
maintenance of
markets and con¬
spending, can we hope to
achieve full employment.
S. 380 recognizes this responsi¬
ington, May 31.
The bill also
sumer
and seeks to
definite vehicle for the
and the President to
bility of Government
provide a
Congress
measure
ment
the
need
provide
size of the employ¬
of the country
specific
meeting it.
and to
programs
for
,
that
it will be easy to reach and hold
full-employment levels. It would
be folly, on the other hand, to
pretend that it is imuossible. The
American people will not be con¬
It would be
tent
to
go
idle to pretend
back
to
protracted
It is
large-scale unemployment.
to
25 %
the
the gold
in
deposits
from 35
required behind
reduces
Federal Reserve
banks.
This
is
sponsors
necessary
of
said, because o| the
large increase in outstanding Fed¬
eral Reserve notes owing to ex¬
the legislation
panded
business
activity
needs for currency.
.and
.
what-,
even
on
the gold content of the"
dollar, the bill's proponents said.
The
Senate has passed similar
legislation, with some different
language, which must be adjusted
The action
before
the
has no effect
measure
White House.
goes
*
to the'
j
how
2538
THE COMMERCIAL &
FINANCIAL CHRONICLE
for
procedures
Keynes Contrived International Monetary Scheme
(Continued from first page)
"Five
shall
be
elected
by the
appoint
directors, other than the American
Republics; * * *.
members
"Two
entitled
not
shall
be
to
elected
by the
entitled
.American
Republics not
appoint directors."
to
The
United
States'
member
on
the
.
proportion
same
power
the
as
.Board
of
and
.members
John
less
as now
if
later
taken
are
the
on
Governors, 28%
.projected
.
voting
of
member
in.
and
her
payment for their exports to Brit¬
12
Executive
sist of
Directors
will
United States
minimum
of two
of
con¬
director,
and
probably
three British, a minimum of one
Soviet
and
probably
a
Soviet
a
•
one
board
sponsored director, one represent¬
ing each of the Belgian, Dutch,
and
French
Empires, two repre¬
American Republics, and
senting
one
^
representing China.
the
Fund
and
sterling
countries
in
pounds sterling
expended
only
within^ the sterling area and can¬
area
which
not
be
can
be
into
converted
dollars
or
the
currency of any other coun¬
tries outside the sterling area ex¬
cept by special permission.
"Quite recently
have been made
with
select
new agreements
by Great Britain
of the foregoing, in¬
Sweden and additional
agi cements made by Great Brit¬
some
the
:
"Let
not
us
speculate on
the Managing
nationality of
rector,
but
it
is
Di¬
permissible
not
to speculate on what Lord
when
.meant
.House
in
of Lords
the
Keynes
addressing
on
the
the subject of
the Fund he said
management of
.'that is perhaps
a
little better than
appears'"?
Morgenthau's and Bretton Woods'
Proposals
;
ing
for
Power
Countries
*
ilar
Appointing
Among
Compared to
Provision
in
Vot-
Member
Lord
Sim¬
a
Keynes"
ances
to use in the sterling
except by special permission.
"The
the
sterling
British
Empire and British mandates and
With the bilateral
there has thus been
agreements
created
network of
a
"Management of the institution
be genuinely international,
.without ^-preponderant power of
must
veto
any
enforcement
or
with
lying
group."
country or
managed ex¬
^covering"
about
Bretton
The
United
formerly
moved
wartime
a
policy
offered,
but, apparently, this network of
exchange
control
or
exchange
controls under any flag can be
continued for so long a transi¬
tional period as possible to be¬
come
been
established order
an
ted.
hereafter be adop¬
It exists today and is being
may
thereunder
and
proportions
of
voting
power between the United States
Kingdom,
as
pro¬
vided in the proposals, should not
be taken as representing the same
proportionate
amounts
of
influ¬
the
two
countries... would
have in formulating policies.
Lord Keynes in setting up the
ence
formula
no
doubt had in mind the
preponderantly
greater
the
Fund's
more
and
of
finances
Debtor
facilities
for
international
which
countries
they
of the
Fund.
the
trade
possess.
would
be
overwhelming control of the
sources
in
by virtue
experience in and
abundant
handling
exert
operations
richer
Great
in
re¬
Brit¬
ain
being by far the most impor¬
debtor
country, from the
standpoint of world trade, would
largely dominate the policies havingto do with their disposition.
tant
Furthermore,
tie-in
which
the
Great
very
close
Britain
has
with many other countries
through
the sterling bloc and her bilateral
trade agreements,
and, because of
the common interest in
foreign
trade
such
arrangements engen¬
der,' would place her in an advan¬
tageous position to influence the
conduct
as
well
as
the
tho*e countries.
The United Kingdom
'votes
of
and
post-war
tute
the
exchange
re¬
being-
are
diversified.
As
bi¬
ments
with Sweden,
Brazil, Ar¬
gentina, Turkey, Spain, Hungary,
Portugal, Egypt, Belgium, De¬
fense Committee of National
Lib-
member
may exer¬
in
restrict
move¬
policy it would substi¬
regional management
vast
a
of
exchange for multilateral trade
relations, and controlled bilateral
barter
for free
multilateral
com¬
It would apparently work
merce.
against
States
exports
to
of
countries
the
United
which
habit¬
ually had sterling balances which
in part they converted into dol¬
lars needed
to pay
for their
pur¬
chases in the United States."
Still
another
important
relating to the control of
should
be
taken
into
factor
the Fund
considera¬
tion, namely the blocked sterling
balances, 12 to 14 billion dollars
owned by Britain's dominions and
colonies,
South
Egypt,
American
would
means
countries
on
ing of
Need
countries.
become
powerful
to
European
for
payment
*
transactions
Art.
*
the
for
aligning those
her side in the shap¬
policies
we
This
of
the
Fund.
specially give thought
the
great amount of control
Great Britain would
likely wield
in the operations of this
one-sided
scheme when we-reflect
upon the
powerful influence she is already
exercising
Erettcn
over our
Government?
Woods
Proposal for Au¬
thoritarian Control of Capital
Transfers and Currency Trans¬
actions
Compared
to
Similar
Proposals
by
Lord
Keynes
in
Keynes, in his Clearing
Plan, / devotes an entire
chapter
to
controlling.' capital
The
movements.
Government
of
To
make
this
problem.
effective
control
require
"the machinery of
exchange control for all transac¬
tions,
though
even
general per¬
a
mission is given to all remittances
in respect of current trade." Not
only is this machinery necessary
irt the country desiring it but in
that not desiring it as well. Uni¬
would
by
be
the
inade¬
control
of
capital movements "at both ends/'
Keynes here suggests that
the
United
States
should
set
up
control, which "has now gone
long way toward perfecting."
a
Capital transfers may be effected
by exporting gold, currency, com¬
modities
services.
or
To
effec¬
tively prevent outward movement
of capital requires total control of
all
international
transactions
whatsoever, censorship of mails,
telegrams, telephone calls, cable¬
Foreign travel must be
grams.
stricted. Persons
re¬
wishing to- travel
abroad must be searched. Restric¬
tions on exports through
licensing
must
.
be required.
Would
vide
the
United
States
bureaucratic
that would
be
pro¬
machinery
necessary
"at both
ends," to successfully prevent the
importation of capital from Brit¬
ain
and
other
countries
which
might be able to evade their
au¬
thoritarian guards? Would not the
United States be
morally obliged
to
provide" the
ors,.
army
inspectors and
of supervis¬
policemen to
accommodate those countries and
Great Britain in particular? And
if
she
failed
to
do
this, what
would
become
of
the
much
vaunted international cooperation
of which we hear so much
from
the proponents of the scheme?
Lord
Keynes'
Clearing
provides
for
Union
"transitional
and
contemplates
Flan
unlimited control by member
gov¬
ernments of all
"dealings in for¬
eign exchange after the war for
a period sufficient to
ensure that
foreign exchange resources are
devoted
which
primarily
country
this
to
imports
(Great
Brit¬
ain)
requires in the national in¬
terest, and probably for a longer
period, * *
(Art. X, Clearing
Union
Plan,
sneech
in
the
and Sir K. Wood's
House of Commons
May 12, 1943.)
Government
currencies,
/
over-valuation
discriminatory
of
cur¬
rency arrangements,
movements
transactions
is
of
and
the
currency
essence
of
Lord Keynes'
Clearing Union plan
and also of the
so-called Bretton
Woods Fund Proposal. Let us
con¬
currency device used by Nazi Ger¬
many is part and parcel of Lord
Keynes' plan. Legal color and re¬
spectability would be given to all
of
these
illicit arrangements
and
government
"Fund"
which
the
valued
she
pound
in
could
use
sterling
the d dollar
to
over¬
exchange
and
for
which
political
ownership and
trol of such markets.
This is what
is
New
planned.
The
rency restrictions and special ar¬
rangements with the sterling area
con¬
Lord
to
do
this if and
lative
bodies
hope for from the plan to the
advantage of this country?"
He
stability.
This
was frankly admitted before the
Committee
by Professor O. M.
Sprague, undoubtedly by far the
informed
witness
Woods.
then
strictions
ments
eign
peg
exchange,
at
Second,
thereafter.
soon
that
the
tilities
this
realized
not
long thereafter.
signify can be
only
by considering, the
of most of the curren¬
throughout the world during
years
following the/ other
World War.
As is well known,
there
but
were'
few
after
years
the
war.
A glance
at
the
exchange rates of the curren¬
cies commonly listed will show
that
there
has
been
more
a
or
less general
to
cases
the
depreciation, in many
marked degree, during
a
entire
period from the close
of World War I until the outbreak
of the present war.
The United States would be ob¬
ligated
to
enforce
compliance
with the official
ceiling price on
the dollar, as provided in Art.
Section
3.
Assuming that Amer¬
ican prices were to remain
where at their present
some¬
level, good
dollars, dollars whose purchasing
in
power
goods
terms
of
American
stable, would sell for
was
foreign
currencies
which
had
been overvalued in the first
place
and whose value was
constantly
declining. To the
eign currencies
the
procedure
giving
our
should
extent that for¬
were
would
goods
be
bear
we
one
for
away,
constantly
that the dollars
overvalued
in
of
we
mind
lent would not
be paid back to us.
Only by tak¬
ing the goods of foreign countries
could
tion
we
for
receive
the
Now
the
of
the
terms
of,
say,
comes
indefinite
most
compensa¬
we
they bought
supplied them.
maintenance
value
war
any
goods
with the dollars
to
the
of
pound
sterling in
the dollar, as the
a
period
close
and
for
thereafter,
an
will
likely present to the British
have
and
main¬
the world's
great addition
a
stock of
monetary
but
reason¬
"quotas"
under the Clearing
as
substantial
in
amount
and
subject to being increased
subsequently if the need is shown.
The
aggregate of the world is
put provisionally at 2,500,000,000
pounds.
to
Britain's share of this is
be
325,000,000 pounds, "a sum
double, or more
than double, the reserves which
which may easily
shall otherwise hold at the end
we
of the
transitional period."
Fourth, give Great Britain
der Article VII
posal
over
large measure of control
foreign trade and tariff
a
our
1
Fifth, "The voting
British
of
un¬
of the Fund Pro¬
policies.
currencies
which did not appreciably decline
in value and some became
wholly
worthless
during the first few
large
so
Union
par
would
weakness
cies
not
or
What
as
reserves, distributed in a
able way in the form of
.
value
of the currency of each country
would
probably be that which
prevailed before the close of hos¬
Third, provide
.
should the Congress
2211, it will begin
means
restoration
to the world's
agreement. It is provided that the
Fund may go into operation any
time after May 1, 1945. It is ex¬
This
charge
genera!
we
financial center.
greatly overvalued rate.
par value of the currency
of each country would be that
which, prevailed on the 60th day
before
entry into force of the
a
functioning
sterling
area
helpful to Great Britain
tenance of London
dollar,
The
pected that,
pass
H. R.
re¬
arrange¬
entered."
some
terms of the United States
are
special
the
engagements into Which
for¬
principally
in
means
following:
"without being open to the
of acting contrary to
any
would actually do, if it operated
according to plan, would be, not
to stabilize currencies, but by au¬
thoritarian
and
with
which
Fund
the
elaborates the
First, retention of wartime
favoring
What
scheme.
I
currency intrinsic
best
the
whether there are adequate
safe¬
guards against possible disadvan¬
tages."
"What, then," he asks,
"are these major
advantages that
legis¬
Bretton
As has already been shown, the
Bretton
con¬
accrue
country from
able," he said, "by examining the
major benefits this country
may
hope to gain from the plan; and
We propose
approve
Lords, May 23,
"I can-best occupy the time
avail¬
business
when the
irregularity.
House of
a summary of the
benefits that would
his
to
run
successfully foreign
exchange markets. It is up to tne
governments to do it.
with
trade
bilateral
1944, gave
crete
proved, as far as I
concerned, that people in the
banking
has
Keynes in his speech be¬
fore the
"It has been
am
countries
many
she
alter their
of Feb. 10, 1945, quotes
Henry Morgenthau, Secretary
of the United States Treasury, as
saying that:
Mr.
international
the
agreements. As though
giving to
such, procedure legal color could
York
"Times"
IV,
arrangements"
been
since
a
abolish these and substitute there¬
the
the
is
has
pound
market, while at the same time
retaining all of her wartime cur¬
Fund is not intended to give any
American
this
1
it
keep
market
Woods."
an
But
So
of
policy of consciously encourag¬
ing the export of -capital. So this
be
1942.
equals
exchange and suppress
operations in pri¬
vately operated foreign exchange
markets, the scheme proposes to
a
cannot
$4
would be a
pretty nice
thing for Great Britain to have
a
arbitrarily fixed
an
about
pounds
rate
and
is,
therefore
wholly artificial. What the
pound
sterling would fetch in a
free
market is, of course,
impossible to
say,
but
certainly considerably
less, as experience has. shown.
current
the United States is-now pursuing
multiple cur¬
Clearing Union Scheme.
rency practices, blocking of cur¬
Authoritarian restrictionism of
rencies,
indeed
every
irregular
capital
for
magnitude
exchange between
of
and
fixed
cannot
Lord
Union
and
additional
an
To maintain
manner
a
VI, Sec. 3.
a
his
has
lateral trade and
currency agree¬
extended
influence
which the British would
of their
tending
protection.
own
increased
con¬
relative
,
As
objection has
12.25%,. etc.
and the United
non-dis¬
a
capital
exchange control machinery sim¬
of the Fund to ilar to that of the British
exchange
strictions
nection with this Exhibit that the
'
on
28.% of the voting power, the Brit¬
ish Empire 25%, the Soviet Union
in
current
to reg¬
criminatory basis which it is the
icy which
It should be mentioned
will
Lord
commerce
"The 'sterling area' is not a pol¬
have
controls
in
practices for their
would
no
cise
these
such
exercise
ments, but
action
international
to
controls
necessary
international
Only
which
a
VI, Sec., 1 (a).
may
lateral
Woods
States
ulate
Art.
are
as
quate.
to draw other nations into similar
Fig. 15
controls
change
control
40% of the earth's surface, cutting
across
the
multilateral channels
little
Keynes' Clearing Union (Preface)
the
protectorates.
restore.
Fig. 14
(except
Newfoundland),
professed purpose
Clearing Union.
.
Dominions
Canada-and
"Members
would
of
exercise
to
of the Fund."
area
consists
area
meet
prevent such use of the resources
which
ain
with France,
^Belgium, Hol¬
Managing Director, who will hire land and Egypt, while negotia¬
and fire the staff of the Fund,,
tions are reported with Turkey
conduct the ordinary business of
and others. Full details are lack¬
the Fund, and hold office at the
ing but it appears that in varying
pleasure of the Board of Execu¬ degrees they limit
sterling bal¬
tive Directors.
member
the
in
cluding
"This is the board which will-
govern
other
to
resources
or
same
transfers
and
black
sustained outflow of cap¬
ital, and the Fund may request a
large
ments
rate
r
dollars
transactions, (XIV, 2), and rigid
control of foreign exchange rate's
(IV,
Proposal
not make use
may
The
provides
for
things—com¬
plete control by member govern¬
ments of foreign exchange trans¬
actions—blocking and rationing of
currencies, (Art. VII, Sec. 3, 4);
discriminatory currency arrange¬
ments or multiple currency prac¬
tices, (VIII, 3); restrictions on pay¬
rate
member
of the Fund's
general, the other parties to
these agreements argeed to accept
or
Woods
Bretton
provides that:
He
set-up.
area
"A
ain
the
sterling
The
agreements
currency
capital move-,
Sec. 33.
likely wield through her bilateral
and
v
it is widely
ments, both inward and outward*
should be a permanent feature of
the post-war system."
Art. VII,
the amount of power over the
Fund's operations Britain would
trade
the
read:
we
reasons
held that control of
on
"In
ment states:
likelihood
"For these
National Planning
throws much light
Policy,
in
proposals
Clearing Union Plan
says;
Francis Neylan in
all
in ."Dissent¬
the
first
problem of the first
a
pe¬
>
-•
•
;
Woods
Bretton
plans for the control of cap¬
transfers.
In Lord
Keynes'
ital
Patchin
Association,"
new
"Anal¬
ysis of The Bretton Woods Agree¬
"In
H.
ing Statement" on "A Statement
by the- Committee on Interna¬
tional
the Board of Directors would have
sider
two
indefinite
an
•
identically the
and Greece.
Robert
of time.
riod
\
eration, Bolivia, Peru, Norway,
Uruguay, Roumania, Chile, Para¬
guay
Thursday, June 7, 1945
power
Commonwealth
of the
and
that
the
management will be in
tiers
a
body of experts,
three
—
whole
time
officials who
be
will
responsible
for
the
routine; a
small board of
management which
will make all decisions of
policy
subject to
any overriding
tions from the
Assembly,
instruc¬
an
As¬
sembly of all the member govern¬
ments meeting less often and re¬
taining a supervisory, but not an
executive, control. That is per¬
haps even a little better than ap¬
pears.'
,
y,
..
"Here," said-Lord Keynes, "are
five advantages of major impor¬
tance.
The proposals go far be¬
yond what, even a short lime ago,
any
one
could
have
conceived
of
as a possible
basis of general in¬
ternational agreement. What al¬
ternative is open
to us which
gives
more
comparable aid, or better,
hopeful opportunities for the
future?"
"But," said Lord Keynes in his
sbeech before the House of Lords,
May. 18,
1943,
"if,
in
event
the
trust should prove to be mis¬
placed and our hopes mistaken,
our
we
can,
nevertheless, escape from
obligations and recover our
all
full freedom with
I
do
not
think
a
that
year's notice,
we
can
rea¬
sonably ask any completer safe¬
guards than that."
Indeed!
ing
debtor
withdraw
time
all
By shrewdly remain¬
Great Britain could
from
the
Fund
at
any
and, of course, escape from
obligations and recover her
THE COMMERCIAL & FINANCIAL
Number 4392
161
Volume
iH freedom. But what about the
jnited ■'States?
She; too, could
;
Without heavy loss? Since she
ould contribute the vast bulk of
ie valid assets, how would her
ccount stand if she were to do
o? Great Britain could withdraw
ithaut hardly causing a ripple in
je Bund's operations.
But if the United States- were
withdraw, :, the
whole ship
•ould sink; we would be branded
3
"Uncle Shylock" and blamed
or
whatever troubles, wars and
umors of wars not excluded, the
nember
countries individually
2nd severally might be experi¬
encing at the time and perhaps
)
ohg thereafter.
Just a few words
metallurgical operations in Germany and to put
into operation the control, dismantling or removal fro"m Germany
the steel mills, the Associated Press reported from Paris, May 26.
Wysor was among a group of leading American civilians and
Army officers appointed to help^—-*—
*
areas.
Treasury licenses will not
carry out the policies of American
in control¬
be
ling Germany's economy. Supreme
Headquarters said an economic
intelligence division will make
sure that "Germany's war-making
of
and Allied authorities
ment of facts and exchange
Exchange of labor delegations to help solve world problems of
effect financial
*
Dr.
in
of Dur¬
Hoover,
Calvin B.
ham, N. C., Dean of the Duke
Control
Allied
the
for
group
was
intelligence
the
head
to
that of organized^
labor made during the war," Mur¬
organized labor made during the
war.
In this connection, 1 believe
ray wrote.
of in¬
property trans¬
continue to require
or
of
meeting with the repre¬
sentatives of your organization for
nity of
which authorize cer¬
tain transactional communications
ter
72A and 89,
relating to patents and the protec¬
tion and management of property
located within foreign countries.
It was stated that remittance fa¬
y
cilities to many of the areas are
not
yet available:
When these
are established, General
Licenses Nos. 32 and 33 will per¬
formerly
Almost every conceivable sort of General. Motors Corporation head
currency
debauchment has pro¬ at Antwerp, to supervise the en¬
gressively increased since the gineering section,
other war with a corresponding
Philip Gaethke, of New York,
loss of property, that is, human, to direct all mining operations in
rights, everywhere.
the
American occupation
zone.
To Lord Keynes
the transitional
period, which he says is "of un¬
certain duration," means the re¬
tention by his country of the
devices for manipulating currency
transactions,sterling
area
ar¬
rangements and bilateral trade
agreements and other discrimina¬
tory practices.
It is folly to-"as¬
sume that if Great Britain needs
these contrivances to live in the
S.
Zdunek,
Gaethke formerly
with the Anaconda
and
pany
was
Travail
manager of its
in Upper Sile¬
was
being considered by
in their plans for
sia before
the war.
Philip P. Clover, of New
as chief
of the oil section
branch.
fuel and mining
York,
of the
He for¬
representative of the
Socony Vacuum Oil Company in
Germany but since the war has
post-war period that she would served the State Department as
give them Up later. Being author¬ petroleum attache in Central and
they would
feed upon themselves, become in¬
tensified and permanent. The idea
of a transitional period is illus¬
itarian
procedures,
ory.
merly
scheme. The
effect is com¬
plete.
to
that
Morgenthau and
Mr. Henry
his experts are a front
ton Woods is a show.
concluding
portion
Con¬
of
Smith's article, the pre¬
vious parts having appeared in
our issues of May 24 and May 31.
gressman
and chem¬
products.
Laird
Bell,
Chicago lawyer,
chief counsel for
the economic
di¬
vision.
Lloyd Steers, former agricultu¬
for the American Em¬
Berlin and an authority
agricultural problems,
special adviser to Draper on
food and agriculture,
Colonel James Boyd, of Den¬
bassy in
on
German
to be
H. Hill,
vice-president
of the AllisChalmers Manufacturing Co., as
Peter
a
principal industry member
WLB,
stated
report from
a
on
Hill
of the
Washington
had
been
an
alternate
member.
He succeeds
James Tanham, New York, vice-
industry
president of
the
Texas Co.,
who
recently resigned from the board
to devote more time to private
business.
Mr.
Truman
shifted
S.
of the
Rubber
Co.,
materials and
components permitted the Ger¬
mans.
V '
'
and to pass on raw
Treasury
Trade Rules
stitute to alternate industry mem¬
bers.
fill va¬
Hill's elevation
resignation of Wal¬
ter T.
Margetts, who has been
named chairman of the New Jer¬
sey State mediation board.
Colgate and Climer will
cancies created by
and the recent
;
The
Treasury
May 29
for
Consumption and demand for
food during the war have been at
record levels largely because of
(
civilians had more
buying power than ever before,
two
(1)
facts:
and
trate
of commercial com¬
munications
with the liberated
resumption
Union
Septem¬
Paris' in
in
Conference
ber."
Amended by Fed. Res. Bd.
of the Federal Reserve
Regulation W. relating io
adoption by the Board of Governors
amendment (No. 16) to its
purpose of this amend¬
notwithstanding the fact
that it makes certain changes of
detail in down-payment and ma¬
turity requirements, is essentially
administrative.
It
reflects
no
change in the Board's consumer
credit policy or in the place of
consumer credit regulation in the
Government's anti-inflation pro¬
"The
gram.
amendment
no
in the home-
the
"Under
transaction
credit
improvement field is any
longer
exempted from the regulation by
reason of the way in which it may
be secured, the area in which it
may
all
prescribed for any of
maximum piaturity
ext-eed 18
months except that for certain
'fuel conversation credits' extend¬
ed dtiring the next five months
the maximum maturity may be 24
months.
Heretofore some
such
transactions have been altogether
exempt, some have been subject
to
a
maturity limitation of 12
months, and others have been sub¬
ject to both a down-payment re¬
quirement of one-third and a ma¬
turity limitation of 12 months.
"The amendment also contains
some
technical provisions which
quirement is
ment,
located, or the type of
which it may relate. For
such credit transactions, if
be
The
them.
hereafter
not
may
relate1 to so-called 'summer
items
others which
and
plans'
home-improvement
specified
for
exemption
the
residential property
$1,500, a length- credits.
they relate to
relate to
'disaster
for
and are not over
(2) they tended
their buying in
to concen¬
food mar¬
because such items as auto¬
Britain Relaxes Labor
Oonimls
relaxation in its
London to the New
the like were
York "Times" on May 28.
Persuasion instead of direction is said to
It is too early to hazard a guess
be the keynote of the new order, which is intended to cover the
how
much effect war material
period between the end of the war in Europe and the defeat of Japan.
cutbacks and re-established peace¬
While the original essential works order, which directs labor
kets,
refrigerators and
not available.
production will have on
food
all-important
Certainly,
prospect that all
can be produced
demand during the
next
sixteen
there is
months.
every
that
the
food
will
be needed.
emphasize, however,
considerable reduction in
the national income, due to exwar
workers taking jobs at less
pay, should tend to weaken food
demands. Black markets in par¬
:
Officials
that any
ticular
expected to suf¬
could be
'V;
Nurse Draft
draft nurses is to
Army Drops
Legislation to
be dropped since Robert P. Pat¬
terson, Acting Secretary of War,
has assured the Senate that the
end of German
has
been
most
The
patriotic".
British Labor
controls under a
into
or
war
Ministry has announced a
revised order reported from
essential civilian
in-4>
between
will still apply to men
eighteen and fifty and
women
between
dustries,
forty,
there
their own
14.
(5)
All agricultural
the
what
Apart
building projects,
service
men
dispensers,
and
periods of paid leave following
release from the services.
in the
(2)
or
Executives and managers
<
Labor Ministry
hopes that
of direction can be left
background and that com¬
pulsion
narrow
scribed in the order as
fices."
physiother¬
the power
de¬
"salaried
officials in charge of depart¬
ments, works contracts or of¬
and midwives,
and
apists.
The
employers
nurses
radiographers
rein¬
their
during
former
the controls will
of the scarcity
in the following pro¬
fessions:
chemists, metallurgists
and physicists,
pharmacists and
employment they
when exercising
statement
rights
with
because
di¬
and
of manpower
choose are:
Former
from the continued
munilions work
into
rection
categories now free
women,
workers and
fishermen.
continue
take
in pprt-time em¬
ployment.
age
1914.
Among
living with children
under the age of
Women
(4) All persons
mod¬
limits
may be lowered from time to time
as circumstances permit and
emplovers no longer will have to ap¬
ply" for deferment to retain the
services of men born in or before
(1)
(3)
of
and
eighteen
will be many
The upper
ifications.
to
resistance and in¬
creased recruitment of nurses had
Danzig,
eliminated the need, the Associa¬
lands, Norway and Yugoslavia.
ted Press reported from Washing¬
Today's action, constituting an
ton, May 26. Mr. Patterson wrote,
amendment of General Ruling No,
"The response of the nurses to the
11, paves the way for the orderly
appeal of the Army Nurse Corps
Czechoslovakia,
Denmark, the Nether¬
Albania, Austria,
for¬
equally successful con¬
an
vention of the World Trade
job to
production.
into
fer.
!
Department, on
amended its trading with
the enemy regulations by remov¬
ing from the category of "enemy
from sub¬ territory" the following countries:
Colgate-Palmolive-Peet Co.
New
Jersey,
and Fred W.
Climer of Akron, Ohio, assistant
to the president of the Goodyear
of
Tire and
Scharff, for¬
mer assistant director of the pro¬
duction
division of the Army
Service Forces, to head the re¬
quirements and allocations branch
Bayard
of New Canaan, Conn.,
chairman of the board of directors
Colgate
other
time
Boyd's deputy.
say,
from
items coming back
from
expert on
production, to be Colonel
Hoglund, on leave
General Motors and an
German
to
economists
to divert money
mobiles, radios,
Colonel Maurice R.
May 26.
should be reflected,
some what reduced
the
Colorado School of
Mines and a War Department ad¬
In WLB Post
viser on WPB materials, to be
The National War Labor Board
chief of a branch, to control indus¬
announces
the
appointment by trial
production.
of
food
-
ral attache
ver,
President Truman of Lee
food officials
sending food
the report states, as
reconversion gains mo¬
and is able to put larger
the
Oak¬
in
Committee
land, Calif., and am looking
credit has been made known by the Board.
The changes
take effect June 11.
They do not affect the regulation as a whole
but relate almost exclusively to transactions for financing the pur¬
chase of materials, articles, and services used in repairs or improve¬
ments of residential property.
In*
1
ofrcontract requirements is pre¬
its advices under date of May 22
scribed, but no down-payment re¬
the Board said:
Similarly,
dency,
which
Consumer Credit Rules
industrial
consumers
a
problems must equal that
System of an
quantities of non-food items on
the market, there will be a ten¬
ical
of
consumer
gineer.
patents on explosives
come
ward to
to enjoy a
are
we
to you
deep gratifi¬
successful out¬
the conference of the Ad¬
peaceful
and prosperous post-war, the con¬
tribution of organized labor to¬
ward the solution of these new
"If
express
cation at the very
ministrative
The
mentum
and Bret-
foregoing is
Editor's Note—The
consulting chemical enHe is an authority on exand holds more than 100
wish to
also
at this time my very
relating to reconver¬
sion and reconstruction.
arise
lems
they add, in a
demand for food.
*
of Allen-
Snelling,
Europe,
immediate and severe prob¬
many
smaller consumer
And
buying power
in
be mate¬
developing a
for the solution
will
program
mutual problems.
our
"I
in
assisted
rially
follows:
forces
military
Nazi
tary
output now taking place
should tend to reduce consumer
incomes.
organizations
our
"With the decisive defeat of the
Nay
town, Pa.,
ternational monetary
evidence
O.
W.
Dr.
Text of the letter
nations, the
South America.
olosives
Keynes contrived every
substantative provision of this irrLord
the
was
of suggesting that, at an
date and subject to your
convenience, our respective or¬
ganizations exchange delegations.
I am certain that in this manner
early
of
the needy
to
therefore take this opportu¬
nity
common
European
Associated Press ieported from Washington, May 31.
Agriculture Department econo¬
mists say that reductions in mili¬
supplies
smelters and mines
information.
Unions, USSR.
The likelihood that changes in
industrial employment may have
an
easing effect on the critical
food shortage in the country is
connected
Vaeili
and
(France);
organization for
of exchanging views
purpose
and
Kuznetsov, Chairman of the All
Union Central Council of Trade
Ease Food Shortage
Copper Com¬
Confederation
the
the
"I
Sir Wal¬
Louis Saillant, Secretary of
Generale du
gress;
of support remit¬
Lower Incomes
nity of meeting with the repre¬
.
>
have the opportu¬
to
sentatives of your
Citrine, General Secretary of
British Trades Union Con¬
the
facilities
mit the sending
>
The letter was sent to
members
to the leaders and
CIO
assist¬
invaluable
be of
would
of the
of exchanging views
information."
General William
H.
Draper, chief of the economic di¬
Edward
CIO to have the opportu¬
the
it
ance
and members
to the leaders
ance
believe
I
connection,
be of invaluable assist¬
would
purpose
Brigadier
irredeemable or fiat currency.
out
this
"In
it
"Plants which cannot be con¬
last
war? Did it ever end, or are we verted to production of essential tances up to $500 a month through
Under Public
still in it? Surely it has not ended civilian goods will be destroyed," banking channels.
Circular No. 28, which was also
if the condition of world curren¬ Clay said.
Other
tasks
confronting
the issued today, these general li¬
cies and trade practices is any
criterion by which to judge the group will be destruction of Ger¬ censes will not apply to Austria,
however.
The restrictions on the
case. Have these not progressively
man laboratories and research in¬
deteriorated since the end of the stitutions
in
which
V-bombs, use of currency, money orders,
other war until. this very mo¬ rocket planes and Other weapons checks and drafts for remittances
still remain in effect for all the
ment?
were created.
All future research
liberated areas.
Government printing presses all will be carefully controlled.
over the world have been running
Other
experts named to the
in high gear since 1918 turning group by Clay are:
eriod
oiganized labor toward the solution of these new prob¬
and
General Dwight D. Eis¬
enhower's representative on the
council, announced. - Dr. Hoover
also will be
special advisor to
vision.
enjoy a peaceful and prosperous post-war, the con-
we rare to
.,
Treasury license.
Attention was
directed to General Licenses Nos.
cius Clay,
transitional
following the other
.
tiibution of
lems must equal
the
Council, Lieutenant General Lu¬
did the
Philip Muilay in a letter to trade union leaders of Britain
and the Soviet Union made public on June 4.
authorizations to
or
will
actions
Uni¬
School,
Graduate
versity
instructions
^construction was suggested by CIO President
France
^c°Pversi.°n ai?d
However, communica¬
tions which constitute or contain
war."
ermine.
long
limited to the ascertain¬
are
are eliminated in such a
they cannot be revived in
secret
preparations for another
Plan
Transitional Arrangements," and
3retton Woods for a "Transitional
3eriod." Neither places any time
imiUon-^vhat this would be. That
voiffiSs-^eft to the Fund to deHow
or
way
<
financial, com¬
character
a
business
mercial,
which
powers
his Clearing
provides for "The
Jnion
of
messages
transmission
the
needed. for
formation.
tage.
Keynes
Help Solve World Problems of Reconstruction
Republic Steel Corporation, who resigned that post on
President of
named
Lord
former
May 9, to supervise
respecting the
post-war or transition
:o-called
Control Council has appointed R. J. Wysor,
Allied
2539
lurray* CIO Head, Wanfs Labor Delegates to
Experts to C&nlrol German Industry
■
The
but could she do so
ithdraw,
CHRONICLE
can
limits.
be brought within
Direction will not
be used so long as
order smoothly
i
sary
the new
control
effects the neces-
reallocation of labor.
THE COMMERCIAL & FINANCIAL CHRONICLE
2540
tion by
Post-War Aviation Control
used where it is best suited
the
to
can
We
Notwithstanding the controlling
tial
existing
and
poten¬
to
Con¬
transportation,
private
common-carrier facili¬
ships, trucks and
planes operating over basic "road
beds" owned by the Government,
and railroad trains operating on
the
privately-owned, rights-of6.
of
be
of
systems
granted the
domain
Sound regulatory
practices
the
are
public interest
of
independent
should
their
should
them
tract
(1)
(2)
avoid
wastes,
costs.
It
decrease
is
because
Act
present,
of
or
believe
we
of
features
nautics
Civil
the
that
Aero¬
1938, as it stands
as it is interpreted
by the courts and the Civil Aero¬
nautics
stacle
Board,
to
revision
would
bringing
of
be
ob¬
an
such
about
a
national
policy as the
Transportation Association recom¬
mends, that
ing
we
those
in
presently
"
addition
to
HR
by
covered
•
Three
Specific Amendments
recommendations,
course,
involve
beyond
that
by
it
that
legislation
under
.
I
.
will
the
be
three
be
fundamentally,
of
much
this
at
time,
for
amendment
an
with
important
airport
expansion
That all discrimination against
the ownership and operation of
airlines by other types of trans¬
portation agencies be abolished,
and
abolished
initeness
there
ing
of
on
the
or
the intent
2.
with
no
part of
of
in
any
to
as
board,
what
is
Congress.
of all
no
types of
single, reorganized Federal
a
reporting
Congress.
That
the
directly
well
as
pervision
to
Government
Federal,
than
is
a
the
closer
su¬
apparent
practice now, of the contracts
entered into by airoort
operat¬
ing
authorities
with
the
users
of
airport services, and that
specific directions to this e«d
be
credit
to
re¬
surface
of
to
emphasize at this
strongly that there can
po¬
Transportation Asso¬
America, that we are
of
port" development
As
program.
a
corollary to this, however, it
should be understood that we are
not
favoring all of the features
the
program
sented
to
it
as
has
been
of
pre¬
you.
The directors of the
Association,
who
are the only source of
Asso¬
ciation policy, ha ve not
given de¬
tailed consideration
to the
bills
you
I
are
am
ber
of
considering.
accurate
however, that
not
board
our
a
I
in
stating,
single mem¬
of
directors
or
board of governors would
oppose
the general
policy of fostering air
transportation
through
Govern¬
ment assistance for some
years to
come.
I
believe, though, that
would
ommend
that.
unanimously
rec¬
everything possible
be done by both the
airlines and
the Government to
encourage pri¬
vate capital to enter
the field of
air transport with the view
to let¬
ting
the
Uncle Sam
off
the
hook
earliest
ernment
possible date.
assistance should
at
Gov¬
planned and directed that it does
not
become
the
so
readily accessible
financing of future
amendments
among
contemplated
the
by
HR 674.
reduce
the
2V2
to
devel¬
cents
present
road
into
Government ownership
operation.
In
sounding
this
warning the
Transportation Association is far
from being hostile to the
aviation
that
ruinous
to
ers
this
for
Investigation of Trans¬
portation
Problem
The Association had
hoped that
the above three
recommendations
together
with
other
important
problems concerning the develop¬
ment of air
transport and the re¬
lationship
of
that
industry to
other aspects of the
No Dividends Should
Be Paid Out
of Subsidies
transportation
problem might have been thrown
We furthermore believe
that it
is unsound public
gress
to
pense
of the
policy for Con¬
permit investors in air¬
line securities to
profit at the ex¬
taxpayers.
airline stockholders.
situation which
velop
so)
Taxpay¬
should not be
paying dividends
to
This is
a
may
easily de¬
(if it has not
already done
under
regulation
the
of
present scheme of
airline transporta¬
of
not
and
with
airline
services
siphoning off in
stream
of
dends
to
in
those
investors
in
;
sidies
the
the
of both
panies
were
proportion of all
engaged
either in
Any
in
or
or
of
rather
with
any
transport
without
needs
and
relations
services
If private
ownership
preserved,
be
future
determined
viewpoints of
in
the interests of
who
freight," and (2) how the credit
position of the industry can be
so
fortified
portunity
vestor to
as
for
earn
to afford
the
a
an
op¬
private
in¬
fair return.
To accomplish such aims this
Association advocates the
adop¬
tion of a long-term transporta¬
tion
mote
policy which will
economies
resulting
have
trucking
in
(1)
pro¬
in_ operation,
lower
transporta¬
the
or
subsidy
of
is
on
11-23 of
pages
Mr. Burgess suggested
that, preliminary to providing for
port by the Interstate Commerce
Commission, the, proposal of the
late
Joseph
.
be
built
than
of
in
the
Coordinator,
ex¬
Yet there is
This
proposal
is
and
subsidy
in
report of the
dated Jan. 21, 1935.
tion had existed when Mr. East-
for re¬
organization of the Commission,
receiver.
he
tical
the
problems
friction
and steam.
.
.
°ne .°I
indications
(
•
long-headedness
on the
part of the management
within the new-born
airline in¬
dustry is the universal deter-
mination—and
applies
m
the
to
I
believe
States—by
ficiency and service
ther
and
further
their original
a
ef¬
to pull fur¬
from
away
dependency
subsidy of airmail.
me
this
single airline
every
United
on
the
It seems to
significant thing that
in this newest
transportation in¬
dustry
the domestic
.airlines—
very
all
have—and that is the
point,
they are
this
unanimous—arrived
at
policy of fundamental in¬
dependence
thinking
and
out of their
have put it
own
into
be
Quite
accomplished
stituting such a division for the
originally proposed division of
finance.
division
-
The work of the latter
could
then;1 be
under the direct
the
raost encouraging
of
division of
This
members.
within
the
original
framework of the plan by sub¬
in
gasoline
five
or
readily
solution,
represented
recommended
have
separate
a
could
of the prac¬
between
it
three
further
the
would
for
from any genuine
meeting
over
Eastman's
made made his proposal
their
Government,
con¬
third
Quite probably, if the present
development of air transporta¬
no
proprietary intent in
the
made
should
ago,
by Mr. Eastman in his
as
Federal Coordinator
Transportation
tained
offsetting
Eastman,
decade
made
capacity
company
B.
a
reexamined.
was
subsidizing long-
or
minds
with
i
appears
Proceedings of the Institute
Transportation to which I re¬
fer above.
highway,
other
trucking.
away
must
shippers and
"pay
the
which
of
And to the de¬
pull
is to be
policy
of
proposal Mr. Burgess says:
to
solely from the
(1) what is best
transportation by
single Federal body by Kenneth
Burgess, eminent lawyer and
transportation export of Chicago,
argu¬
ments about rate
structures, and
in
that
manner
all
other forms of common carriers.
discussion of the subject
a
F.
long-haul trucking companies
$ refuse
to
recognize
this
in¬
of
to
a
Trouble would arise
only when
attempt to
single mode of
however,
of regulation of
this, either by the giver of the
than
amiss,
point to make brief refer¬
way,
a
credit
not be
may
ence
In commenting on Mr.
devious
bank¬
sound
It
at this
the railroads' rights-ofthe State or the Federal
haul
looking to the
a
your future consid¬
eration of the recommendation.
pense of
Government
position for this industry in the
post-war
period
must
neces¬
sarily be based upon the re¬
quirements of the industry as a
whole,
railroads
through
herent
measures
Aeronautics Act of 1938 would be
prejudicial to
more
gree that the
transport
broad gen¬
the trans¬
a
of
pected to build highways simply
does not maintain the
com¬
near
with
investigation
the future regulation of air trans¬
because
indus¬
that
subsidies are inherent, for
example in the long-haul truck¬
ing business.
After all, truck¬
ing companies cannot be ex¬
rights-of-way.
a
whole, was operating
profitable basis.
A sub¬
inject
consideration
portation problem with the under¬
standing that no action you take
at this time in
amending the Civil
tain
financial problem.
common-carriers
stantial
vice
or
gen¬
should decide that this
should be considered
you
connection
eral
the
charges have the equivalent
a
in
the givers and the re¬
It is evident that cer¬
ceivers.
as
a
virtue
to
into. your
suggestion
philosophy be¬
hind them, the
philosophy in
their application, and the intent
Prior to this war, no one branch
try,
the
subsidies is
j
The transportation problem is
essentially
fore, if
to pre¬
are
post-war trans¬
Again, the thing which really
be germane:
the
our
of the
a
of the bills
presently before you.
We would not be
disturbed, there¬
to
obtained
controls
and
Suggested
Changes in National Policy, pub¬
lished in January, 1944, seem to
of
like
committee
your
by
excessive
pressure for them, leads inevit¬
ably to State socialism over a
long enough period of time.
On
this
point some observa¬
tions from the introduction to the
in
would
powers
many
problem
term benefits of excessive sub¬
se¬
of
which
warn¬
subsidy theory, the
slaughter of the long-term gains
of independence by the short-
Basis of TAA Suggested Policy
Problem
and
abuse of the
curities, which dividends would
actually, wholly or in part, be
paid by the taxpayers.
Statement
sound
so
much of solemn
regulatory
questions of fundamen¬
principle that the debate on it
is
likely
to
be
prolonged.
It
would
probably be unwise for
pressure
groups.
And
there may be no possible escape
from State socialism.
For the
divi¬
airline
recommen¬
regard to the transfer¬
in
of
our
tal
from
increasing
as
so
portation system here at home,
then there is no possible escape
and ;the
moneys
so
subsidy, that I
connection
an ever
Single Body
a
transportation
regulatory
body is a suggestion that
involves
the subject of subsidies which
dominate in
contem¬
operation
dation
the
First, if subsidies
re¬
rect and indirect subsidies to air¬
ports
Regulation by
We realize that
quote it at this point:
plate the continued pouring in of
public money in the form of di¬
the
important
segment of the transportation in¬
dustry and to the public, which is
expecting great things from that
industry.
■>'>■,';G
ers
does
b
held
joint auspices
York
University
ing to Congress, to industry, and
particularly to the beneficiaries
it to the taxpay¬
the Congress that
assure
fundamental
today.
the
believe .is
owes
program
our
an
I
lowed to sell its competitors down
the river.
We believe that this
committee
of
of
competition to pri¬
transport
is
al¬
vately-owned
Govern
step with tho
eral
contains
of
our
Civil Aeronautics Board
to
private capital in airline
expansion and operation before
such
deal
to
predicted
operatl
the basis
School of Law and the School of
ment of
consumers
Need
this
Transportation,
New
delivered,
kind
post-war
them
on
Commerce, Accounts and Finance
on
an
which
upon
operate
r
hare*
ence
duction contemplates replacement
of Government funds by invest¬
industry; in fact, we believe that
we are
thereby discharging one of
obligations
We
should
the program that is presented for
airline expansion at Government
restoration
the
mile.
Board
committee
of
the
with
in view of the magnitude of
you,
known
University, in cooperation
Transportation Associa¬
tion of America, said something
trans¬
this prediction is based.
We be¬
lieve that the Board should assure
expanding
down
air
per
the
analysis of the figures
industry
rapidly
be possible
for
this
to
ruptcy.
pauperized
Institute
Aeronautics
soon
rate
that
opment of airlines that this
mag¬
nificent
and
is
Civil
opinion it would
so
,
incorporated
of
to
well
and
tative
on
be
Motion
in
the
let
car
several
thinking that the
airlines-yes
and the railroads—are
showing
of
correspondent and radio com¬
mentator, in an address before the
Board stated in recent testimony
before this committee that in his
Transportation
United
States
di¬
our
Men
last year under the
the
not
same
author
Taylor,
in
either
as
River
ment would be in
war
Association's
Let Private Capital Do the Job
J.
Henry
,
point in this respect has not al¬
ready been reached.
A represen¬
of
and
period
as
it
showed
determination
Mississippi
nines
But
Pretty
Are
s
In
subsidy-savers
for example,
the
Dangerous Things
serious
their
same
riers,
such
oppose
the
.
to
carriers
Government itself
or
Subsidies
investments.
expense,
opposing by implication or
otherwise any features of the air¬
and
Federal
exercise, in the interests of the
taxpayers,. State and municipal
as
and of
commerce
misunderstanding of the
ciation
in
carriers be centralized
agency
3.
that
misunderstand¬
court
That regulation
common
clef-
such
phraseology
be
can
bureau
that
to the formulation
way
the
so
rectors
program:
1.
whole
our
believe
we
not
to HR 674 and deal,
germane
aspects
of
seen,
gentlemen,
following specific
recommendations
are
that
wish
point,
think
consideration
committee
your
but
deeply into
so
establish
which
These
facets and
many
transportation.
here suggest¬
are
amendments
674.
so
sition of the
-
some
at
(4)
and
and glibly
"transportation
our
the
value
agencies
position is a
of
respect
are
the
soundness
We
operation.
th
inj
an
track with the
other
policies.
un¬
One might wonder if the danger
loosely
so
as
of commerce and
_
in
improved services;
strengthen the credit struc¬
of the carriers involved; (3)
ture
it
as
of transport—
national transportation
a
needs
ownership which would
or
result
forms
policy
calculated, to a greater degree
than is the present patchwork of
obsolete policies, both to meet the
effectuate
to
is
paving the
of
joint arrangements either by con¬
Like¬
rates.
growingly
the
to
believe
should be encouraged.
Every possible inducement should
afforded
all
threat
port
Com¬
their
and
constant
ing the needs of
of transport
be
and
of
frS1
me
qu™- >
of free>
irom
Government
support £
the
maintenance of
transport over another, add to
the
national debt, discourage
the
levels
airlines tell
but they do not
he basic
principle
do,
con¬
ing for the competition that raises
competitive
transportation^feituation
for
private investment, and tend to¬
ward
Government
ownership
has any chance whatever of meet¬
restricted.
be
not
pay¬
systems
ownership with other forms
mon
gro¬
tesquely ruinous position of
among the
tinued Government loans and
subsidies, favoring one mode of
tax¬
whose
preliminary steps
thoroughgoing inquiry into
necessary
a
reaches
capital
forcing
are
transport agencies into the
However,
of ' private
you
development
call
that
Policies
who employ unsubsidized
payers
nothing short of an investigation
by Congress such as we suggest
such
continued.
be
sources
Otherwise
urge—that you take immediately
economy
constituted—that carriers
now
other
each
to
support
problem" has
they
as
related
to
What
may
be
regulated as to rates and
services by the same authority.
taxed
described
reveal that many carriers can best
serve
should
and
airline, surface and waterway.
carriers.
that
transport agencies
terms and
same
almost axiomatic
alon*
They may
things, and my
other
on
of facilities; (4) en¬
courage constructive
competi¬
tion, and (5) assure "equality
of regulation."
competing forms of transportation
own det.
one
all together.
of all types
■'?
seems
nnnation—each
of
technological
the
practice out of their
costs;
curity
over-indulgent
an
subsidized
involves
of the public
be
wise, investors in securities of
the
transportation
private
as
airline
to
one-
which you are considering, but we
do suggest—in fact, we
for
use
the
on
conditions
formulate
the
That competitive common-car¬
likely
It
strongly
of such carriers.
rier
trans¬
immediately
an
development pro¬
gram.
We are not, therefore, sug¬
gesting that you delay action on
this
very
important
program
ties—between
way
whole
realize,
overall
persists in regulation which
compels
competition
between
gress
types
general in¬
a
however, that you
are
faced, particularly in view of
our
victory in Europe and the
possibility of an early victory over
Japan, with a pressing necessity
rates.
of
hopper of
of the
portation problem.
perform the most
efficient service at the lowest
influence
the
vestigation
traffic—
of
requirements
where it
into
of facility should be
(2) support the se¬
investment by the
broadest possible earning base;
(3) offer every inducement for
tion
authorities that
same
sponsibility for promoting airline
development.
A proud parent is
(Continued from first page)
each type
the
charged with far-reaching re¬
are
Thursday, June
placed
jurisdiction of
Control Board,
and admin¬
istered through a bureau organ¬
ization. i -i Such,
however, are
matters of detail, and not funda¬
mental to the basic purposes of
reorganization. The work which
has
been
accomplished by
the
Civil Aeronautics Board durin»
the
four
past
preserved.
years
could be
excellent
One
method would be to incorporate
into
the
Commission
the
and
organization of that
and
in
effect to
convert
the division which
start
Board
it into
wouj^ regu¬
late air transport.
Abolish
Discrimination
recommendation No. 1
for amendment to HR 574 to cv
As to
our
:±u
J:
+
acHlinSt
■fc
Volume
the
161
Number 4392
ownership
airlines
by
operation
types
of
and
of trans¬
portation—there need be
extensive debate
Congress wishes to
the Caspar Milquetoast
•
it doesn't.
of
the
Civil
switching
and
off
and
of
on
reflection upon some Government
Aeronautics
Board,
the
lack
of
clarity
It seems to
tee has
matter
a
a P
clear-cut
declaration
Federal, State and municipal sub¬
sidies
to
no
shall
portation
such
a
way
monopoly
every
be
of
trans¬
employed
to
as
the
to
owner
form
one
in
establish
exclusion
a
there
sidering
sound
any
the
fact
basis,
that
the
Civil
(b)
if in
have
in
ments
Act
to
the
which
have
be¬
But
of
of Congress,
by
phraseology to Sub¬
Provided
further,
That
nothing in this Section
this
Act
shall
be
construed
transport
good rea¬
line, or the participation in the
financing thereof, by any other
the public—for
person
operator
on
the
that
a
fleet
of
circumstances
no
can
into the business of truck¬
Of
course, there
freight?
ing
isn't, and Congress doesn't say so.
But it does say, in the Trans¬
portation Act of 1940, as amended,
that"
railroad
no
truck
line
lines.
shall
Furthermore,
Aeronautics
preted
to
truck line
operate
paralleling
Act
a
rail
the
Civil
been inter¬
has
that
mean
its
railroad,
no
or barge line
may go
into the airline business.
all
of
of
the
have
discussion
been
able
to
find
and
it
that
been any question raised
never
hope
we
agree
ever,
committee
your
I
to.
will
am
wondering, how¬
and offer personally the sug¬
gestion for what it is worth, if
could
not
you
begin
to clarify this
situation in the direction of what
we consider to be sounder
public
policy than that enunciated in the
present Act, by. starting with Sub¬
division
Civil
(a)
Section
of
2
of
Aeronautics Act of
make is read
as
from
the
Inc.,
to
American Export
compelled
defend
the
com¬
in
court
itself
development of
domestic
and
air transport
to the present
and future needs of the
and
foreign
commerce
of
the
United States and to the needs,
development, competitive inter¬
ests
and
credit
soundness
lines
should
out
the postal service
national defense.
have
and
of
also,
on
the
19
page
the
of HR
effect of
stating
as one of the
policies of the Civil
Aeronautics Act, as follows (the
(b)
The
regulation
(1) in such
degree
of
•economic
;
competition, in such
and in
of the
very
but also
as
am
expressing
opinion and
not
as
tion,
us
very,
to policy
timing.
fail
Act,
find
to
against
various
my
curious, and in
respects inexplicable, situa¬
very
tion is found in the Boston-Maine
Airlines
Northeast
facts
be
to
seem
case.
The
need
tition
of
brilliant
a
planes.
of
their
favored the unyielding po¬
sition which the Civil Aeronautics
otherwise
interest.
with
ized
respect
original Act to Regu¬
its
and
additions
ducted
har¬
properly
the
by
either
company
or
Boston
through
&
mention of the
name
through the
when it
of the company in
was
mercial
There
recapitalized.
was
carriers
was
no
of
that
time.
that
there
on
the part
Early in 1941 the Boston & Maine
that
wasteful
and
improve
coordi¬
persons
engaged in such commerce, and
control
carrier
a
carrier
Congress
any
that
of
a
was
by
carriers
water
in
grouo
the
since
the
Northeast Airlines
the hands of
the railroad
before the passage of the
1938, no
a
railroad to
of
transporta¬
limit but
the power of
to
and
own
in
a
small
railroad
operate steamships,
own
carriers of the air!
nomic
conditions
and operate
Where eco¬
such
are
plainly to require little
regulation, why should
or
railroad.
aware
Yet the
that
com¬
two
types
existed, for it
pro¬
through rail and water service
that
a
of
so great.
If, therefore,
Congress has deemed it nec¬
face carriers to
by water should
Aug. 28. 1943, more than two years
later, the Civil Aeronautics Board
opinion
to
a
vided
an
of
lim¬
how much lighter should be its
limitation on the right of sur¬
and
own
of the stock which they
gave
power
measure
of
be
should
control of these
mon
required, for the acquisition
held.
On
were
a
not control
with the Civil Aero¬
approval, if
they
for
reasons
as
or
we
no
have
air
in
the
law
that
where
that
says
tion
port Association, might be
ably assumed to have had
also
and
analogy between
the Motor Carrier Act of
originally written and
1935
the
as
reason¬
im¬
an
portant role in the enactment of
the Civil Aeronautics Act.
unquestionably
in
great influence
in
He
was
position of
presenting his
opinions and advice to Congress.
In his testimony before the
House
Committee
a
Merchant
on
Fisheries, he made
Marine
enlight¬
an
ening statement on behalf of the
air companies against a
provision
in Section 4 of HR 9710 which
would
have given the Maritime
Commission power to subsidize air
service. He said:
If shipping or
any other
transportation companies wish
.
.
.
to engage in
air transportation,
there
reason
is
should
no
stand
on •
why
they
different f
any
basis from any other
person de¬
siring to enter this business.
The above quotation is taken
from hearings before the Commit¬
tee on Merchant Marine and Fish¬
eries,
House
of
Representatives,
March 22 and 23, 1938.
page 24.
This analysis by Professor Van
Metre would seem clearly to in¬
dicate that the Interstate and For¬
eign Commerce Committee of the
House
of
Representatives
reasonably
be
expected
might
to
apply
itself to the problem of
clarifying
the "intent of Congress" for the
benefit
of
Board,
the
the
Civil
courts
state Commerce
Aeronautics
and
sion
that
future,
matter.
may
y; ;-
that
this problem
policy
sist
will
in
or
permit
person,
the
:V;'*
.'••'■
gentlemen, it is
liberal
commis¬
or
now
earnest recommendation
solve
Inter¬
have, or as¬
have, or may have in the
any
jurisdiction in this
to
And,
the
Commission, and
other board, body
any
sume
transport, to
Metre
the
The late Colonel Edgar S. Goras President of the Air Trans¬
has
the
of
rell,
germane
Van
cogent
on
Moreover,
disqualifica¬
"intent"
Congress.
participation
very
such
the
was
qualified
remarks
new
Aero¬
has
transportation.
it
Professor
some
a
Civil
from engaging directly
indirectly in the business of
or
policy that is excessively and
burdensomely restrictive?
a
Maine Central railroads filed
nautics Board for
The
interest
essary
joy
hint
intent
any
stifling
competition
or
injuring the public
the
the
water, the only important com¬
1940
carriers with¬
nearly
now
relationship be¬
air
application
amend¬
tween railroads and carriers
Northeast Airlines, which became
the
1887,
is
util¬
and
the
Board
not with
of
carrier
comple¬
facility
tion by surfaces carriers, because
the potential competition is not
known as the Inter¬
state Commerce Act—there was
the
surface
ter of control of air
with
public
by
owned
acquisition
and
interpreted
section not only as virtu-*
ally forbidding a railroad: or a
steamship line or another sur¬
face carrier to acquire control
of an existing air carrier, but
virtually to disqualify a surface
rail¬
as
steamship,
preserving
competition, are not so impel¬
ling, when we deal with the mat¬
in
Van Metre says:
ments
RR.
be
acquire control
Professor
which
suming
or
transportation
can
iting the
inter-carrier control.
con¬
Maine
supplementary
which
On page 10 of a pamphlet pub¬
lished by the National Federation
con¬
in
develop¬
the
this
The airplane, con¬
may be regarded as
sequently,
Board' has
ized, airline service has been
with the needs of the
of
with
carrier
Yet
nautics
way express.
out
late Commerce—the Act of
mony
state
air¬
The
be
establishment
service.
and
least
at
modity traffic handled
of
ever
many
of
can carry only
passengers,
mail and light, valuable
freight
similar to much of the com¬
policy
1931, when the BostonMaine Airways, Inc., was organ¬
in
present
mentary
Since
and
Airplanes,
Transportation at Columbia Uni¬
versity, discusses at length the
question of whether Congress has
the
types
Similar statements cannot be
of the
relationship be¬
a
In
of
compe¬
ment,
analysis
American Shipping,
if
these
made
the eminent transportation expert,
W. Van Metre, Professor of
of
control
between
tween surface carriers and
capital
transportation
assumed
certain .measure
a
.^carriers is to be preserved.
re¬
participation
for
Government
air
an
the
same
is,
which
follows:
as
must
deals
of
the
still
carrier
highway carrier.
borne in mind,
however, that this part of the
because every
there
other
any
It
purpose¬
railroad
originally written."
a
ment,, is
the
railroad
a
similar
a
important of Professor Van.
Metre's observations, in our judg¬
com¬
the
that
and
was,
T.
these:
successfully
traffic
to
not
act
where
serve
This is
of
there
avia¬
hampering
the
kinds
American
to
real,
repetition of
most
mat¬
carry can be carried by a
steamship, and anything that a
steamship can transport can be
carried by a railroad.
The rec¬
ord of experience tells us
that
As to the "Intent" of Congress
In
routes
kind
neces¬
private
airline development.
in
is
steamships were for
of preserving and
is
of
operation,
Professor
not
which
inevitable
termini.
strictions in the innumerable pro¬
hibitions in the Civil Aeronautics
manner
ownership and operation
of other forms of
transportation;
to
to
Airlines Case
control of
in the
seems
Boston-Maine—Northeast
was
between, and
transportation by,
lines
devoted, with¬
stupid, not only
transportation,
nate
I
rail carrier should not
commerce,
to
This
war.
competition of such
commerce with other forms
of
and
been
rival
the
layman,
a
England railroad lines owned a
controlling interest in the airline.
the
relations
this
as
independent,
the highest
and
in
wondering,
that
safety, foster sound
conditions, and pre-
destructive
am
Congress
of
of
is
airline
amended in 1940 so that this
pro¬
viso applies only to
railroads and
can
mutually
to recognize the
preserve the
inherent
advantages
of
such
assure
fact
After refinancing, as before, the
as
commerce, to
the
railroad and other northern New
italics being my suggested amend¬
ment):
commerce
steamship
preoccupation, to the winning
original
Then,
674 consider
the
and
of
other forms of transportation, of
vent
operating officials of both the air¬
Another
an
adapted
consid¬
any
it
the
forms
Van Metre indi¬
cates, the Motor Carrier Act was
competition.
Com¬
between railroads and
petition
ful;
a
was
As
purpose
water carriers
it
as
National
upon
regard to
other
proviso contained in Section 213
(a) (1) of the Motor Carrier
Act
promoting
Board
to
follows:
encouragement
of
the
of
as
Van Metre points out
that this proviso "is almost
word
Congress in
limitations
control
participation in
All of
this had to go on at a time when
the attention and energies of the
some
(a) The
system
complete reorganization.
the
1938
all
the
hamper the development of
a
accomplish the purpose
what
to
the attitude of
The
positive
a
transport
away
the
of
Congress imposed
changes,
necessary
law,
was a vital factor, the
interpreted, compelled the
American Export Airlines to split
16
in
of
in
for word
relationship between
the matter of water and
rail
sarily that of the Transportation
Association, how the opponents of
as
transport
Professor
petition to the situation presented
by airlines and railways. He
says:
that,
airline operation
by surface carriers, who say they
fear that surface carriers would
specific
to
subsection and
without
at
personal
in the midst of war, a war where
against the action proposed by the
Board, and finally to go through
ments
that
as
desirability from the viewpoint of
broad public interest.
Yet, right
the
page
tween
carrier.
efficiency of the American
Export Airlines operation and its
of
On
in the interest
We hope you will pro¬
the Board must grant
and
participation
Federation
applicant's
participation
in,
or
ownership of, any other kind of
to the
pany
amend¬
408,
I
It is perhaps not a proper func¬
tion Of this Association to suggest
phraseology for
the two types of
carriers.
must do.
I
this
activity in the
of
as
there has
raliroads, and
the part
was
the
on
ter
statement
eration
in
competition
of
transport policy,
substituted
certificates
In the opinion of the Civil Aero¬
case
be
vide
other
any
nautics Board in this
Lines,
Suggestions for Clarification
in
future
other
there
kind of transportation.
barges
barge canal in New York
under
he go
Congress saying to
of
engaged
case
Section
of
water carriers from
extent of its
conflict
the
of
do suggest,
we
sound
among
as
preventing the ownership and
operation of an air transport
con¬
(b)
this devilish
in
nor
in
as
the
that the Caspar
Milquetoast, nega¬
tive philosophy be taken out of
(b) of Section 408:
(b)
unfair
possibly with a prayer that a bet¬
ter job will be done next
time.
fogged the intent
division
such
It endeavored to
protect
Act
supporting the Civil Aeronautics
pamphlet
Professor
phraseology tQ legal minds,- Van
Metre draws an
analogy be¬
leave
adding
of
is
indepen¬
dent."
independent
laymen would be well advised to
places in the
many
apparently
this
there
Subsection
mind
be
facilities have only one
for existence—-their service to
an
When
interpretation
we
tent" of the
Congress that they
should be
"mutually
airline
an
If this is good
government,
less of it we have the better.
such absurd
the American Export
are to be avoided
purpose
the acquisition of
one
type of carrier by another; and
in none did it
give the slightest
indication .that it was the "in¬
by
com¬
interpreted
re¬
forbid
in order
controlled by a surface carrier.
interest
as
the
property
the special pro¬
on
Board's position
Congress
they could not
to
Commenting
let it be repeated, that
in
the laws enacted
for
quire the separation of rail and
water carriers,
whether com¬
petitive or not; in none did it
nearly
and
viso in the Civil
Aeronautics
which
has
been
the regulation of
transportation
before 1912 did the
de¬
persons
merce.
of
none
this
give such extension
par¬
for¬
to
might extend its
All
be
motor vehicle in
interstate
says:
was
under
the assumption of the Civil Aero¬
accomplished without
the necessity of detailed amend¬
son
•
of
subdivision
public
The
forms of transport agencies.
Is
that the airline
nautics Board that
408
of
both
that
Later, on page 12 of the same
pamphlet, Professor Van Metre
jockeyed
disposing
tion
operator of other
or
of
control
nor
bidden
railroad
all of their airline stock
cdmmon
divorced,
in the future to
acquire
control of water
carriers.
...
was
be
railroads should
case
better term—into
a
operations.
Section
in
This petition
It would be
necessary for your
committee to do a
major
might
that
be
necessity
in
in the future.
looking stand in writing into this
law
non-
reduction
a
forced—perhaps
would
Airlines decision
that your commit¬
us
thus
for¬
monopoly
competition
with
subsidized transport.
as
the record in the control
ownership.
special
any
preserve
operation
on
should
was
show
under
steam
nied by the Board and the Boston
& Maine and Maine
Central were
out
sub¬
situations
where
clearly exists.
so
keep
a
the
fine opportunity to take
definite
and
forward-
a
firm,
a
in
and
source
ticularly
will agree that it is the re¬
sponsibility of Congress to clarify
directives
to
capital from
barbed
Aeronautics Act of 1938, and
But I think
you
its
entanglements
on
lines
a
mediately petitioned the Board
opera¬
Civil
the courts
or
—perhaps all three.
with
forced
lights in the American
Export Airlines case is a serious
Congress,
operation
airline
in
not involved in the
ap¬
plication for the New York serv¬
ice, then pending.
Northeast im¬
which
sidy-supported
red
green
agency—the
suggestions,
lines
to
ever
Counsel
certificate to operate
into New York, as to whether
rail¬
open
proper
Aero¬
Public
of the application of the
case
gress does not intend to
surround
private
the
airline for
offered to your committee for
any value that they
may have, do
not do the whole
job but merely
introduce the thought., that Con¬
wire
nautics Board in connection with
its
the
by
road control of the Northeast
Air¬
two
airline
If you don't, in the hame
*of
good government say so.
The
off-again,
on-again
Finnegan
maneuvers
raised
are
and the "Please Fence Me In"
phi¬
losophy that was enacted in the
Civil Aeronautics Act of 1938—
or.
advantages
crimination;
These
Either
continue
its
uniform terms and without
dis¬
the
Interstate Com¬
Commission recommenda¬
tion.
that
so
available, so far as prac¬
ticable, to all points on fair and
such
no
would be the
as
(2)
will be
with
case
merce
CHRONICLE
2541
and
other
THE COMMERCIAL &
FINANCIAL
in
our
very
that you
by declaring
a
interpretation
properly
regardless of his
other forms of
own,
any
operate
or
as¬
financing of air trans¬
port.
Extent 6f Public
Civil
Aeronautics Act, and quotes from
This
Interest
suggestion is of vital public
'
under
was
common
management
provisions
extend
of
the
to ' that
was
approval was reciuired.
*
On the same day that that de¬
cision was rendered an issue was
was
by water
part which
no
gress
regulatory
Act
part
sendee
trav>ov>nrfa+»nn
Civil Aeronautics Act of
control and
the
as
was
weil
as
by rail.
should
of
the
a
report
made
There
indication that the Con¬
felt that the rail and water
the
Interstate
Com¬
1928 which
the following recommenda-
tion:
v-V
v--
railroads, whether steam
electric, and water carriers
That
wb'ch
to that
of
Commission in
merce
or
subject to the act, should
specifically authorized to
gage
/
in
the
transportation
be
en¬
of
interest
ures
as
indicated by some fig¬
that have been supolied to us
by
the
Civil
Of
the
789
Aeronautics
applications
Board.
for new"
services
on
pending before the Board
April 30 ol' this year, not in¬
applications for foreign
permits, five v«*"> *rem
(Continued on page 2542)
cluding
air carrier
'
Thursday, June 7, 1945
FINANCIAL
COMMERCIAL &
THE
>542
•f
Control
steamship
»; railroads,
ten from
'companies, three from
street rail-
and
125 from
companies,
J-vvay
Vrier applications
included 43 filed
business,
tion methods.
and on being cross-ex¬
Republican member
said that he had
mitted to own
always believed in free compe¬
titionwhereit
worked
efficiently,
peting services, including water
applications is
One of these bus
before the
Committee,
lines.
plan of the company was fully
^described by Mr. Arthur Middletcn Hill, President of the Grey¬
hound Corporation and also Pres¬
be per¬
and operate com¬
should
all
of
of the costs of in¬
competing transport as
part
or
ing and Currency,
would put
all
F
of the committee
...
Government assumption
3.
•:1
amined by a
Railroads
2.
jlfthat of the Atlantic Greyhound
J'- Corporation for a helicopter servH ice to be operated' in connection
J/.with the company's bus lines. The
'
be
replaced by expressed
favor
of
alternative transporta¬
more
and
Federal corporations'*——
~
.
on
an
economical
basis.
direct
Wrote Thomas
"The Com¬
Association of
Association Secretary,
continued:
New
Wallace advocated
i
■
f
.
<
merce
he
Jefferson Miley,
according to the Associated Press
from Washington, May 29, which
Mr.
r~
"Yet,
sfcid, "we've got to do it in or¬
der to get going."
He predicted a period of wide¬
—
basis under
Congressional control.
business-like
a
on
"drasti¬
a
defense against monopoly is cally revised" taxes to aid post¬
war
employment and production
no longer warranted and should
and submitted a program to en¬
ident of the National Association
be abandoned.
courage the development of small
oi Motor Bus Operators, in a pa¬
This Committee advocated the
business.
per which he presented before the
consolidation of railroad systems,
The discussion of his economic
Institute
of
Transportation,
to which the Association believes is
which I have previously referred. fundamental to ultimate common philosophy
developed when he
declared: "Small business injects
It appears on pages 127-132 of ownership.
But, the Association
into
the
blood
stream of industry
/lithe Proceedings of the Institute.
proposes competitive transporta¬
k'j One point which Mr. Hill em- tion companies—not regional con¬ and commerce the health-giving
properties of
free competition.
phasized is worth re-emphasizing solidations.
Free competition is the great reg¬
here.
"And it should be rememOn April 21, 1941, the late Jo¬
ulatory/agency
which ideally
j bered," said Mr. Hill, "the capital seph B. Eastman, then Chairman causes industry and trade to adapt
"> upon which motor bus companies
of the Interstate Commerce Com¬ themselves to social purpose.
have operated is private capital,
mission, said:
??As free competition disappears
y It
has been attracted because of
Clearly
there
are
certain from our economy, its place is in¬
; the ability 'of the bus companies
things which each type of car¬ evitably
taken
by government
y to
provide adequate earnings at
rier can do better than any of regulation.
Complete disappear¬
the lowest transportation rates in
free
competition, then,
the others, and the ideal sys¬ ance of
-.1 history." ■ «
tem would be one which would means eventually complete regu¬
Mr. Hill'points out that the bus
utilize
them
all
accordingly, latory control by the state with all
industry proposes to establish a
emphasizing cooperation and co¬ the dangers that implies to the
ncn
subsidized, multi-scheduled
of
the
ideals
of
ordination and avoiding waste¬ continuance
helicopter service operating beful uses, but at the same time American democracy."
: tween bus stations in downtown
Mr. Wallace declared his plea
retaining a very considerable
sections
of approximately 1,000
element of competition.
for small business "is not based on
cities and towns, and to coordiIn
1926, the Interstate Com¬ any antipathy toward large busi¬
V nate this
service with highway
ness
as
such," adding:
"For I
bus transportation. Here, then, is merce Commission, following a
nationwide investigation of truck fully realize that, in some fields,
i'j a proposal to inject some badly and bus operations, recommended production can be carried on
: i needed
private capital into the
economically only by operating on
that:
1
! operation of air service.
a large scale."
efficient
Robert F. Wagner,
Senator
Commerce Henry
Wallace, appearing
House Small Business
A.
should
cheaper
;|by bus companies.
A-
Chairman of the Committee on Bank¬
Representative Carter Manasco, Chairman of
the House Committee on Expenditures in the Executive Departments,
each member of both committees, on May 29, leceived nom the com¬
himself as being in merce and Industry Association of New York a letter urging him to/
"free competition"
in
support passage of the Government Corporation Control Act, which
Secretary of
Unprofitable railroad serv¬
1.
ices
The motor car-
carriers.
motor
following
1933:
made the
observations on' Feb. 13,
Enterprise
Free
(Continued from page 2541)
Institution,
and Industry / Association Supports
Bill to Control Government Corporations
Commerce
Wallace Favors §
i''
Post-War Aviation
CHRONICLE
and Industry
spread unemployment during the
reconversion period "if we're not
Inc., believes that given permission to make more
should have information cars," and if aid is not given in¬
regarding, and supervision and dustry
through
the lifting of
control over, all government cor¬ other Government restrictions and
porations and their scope of op¬ controls.
eration,
and further, that the
The Ford share of the 200,000
government corporations' accounts program will be approximately
should be subject to audit and
40,000 cars.
That was 10 days'
budgetary control."
output for the Ford plants in 1941.
The bills
would require that
It will cost the FOrd company,
wholly-owned government corpo¬ he said, $150,000,000 to get back
rations submit, through the Di¬ into full-scale peacetime produc¬
rector of the Budget, a detailed tion.
Ford plans construction of
budget program to Congress for four new assembly plants and 10
its
modification
and approval. parts depots in different sections
Specific requirements are pro¬ of the country.
York,
Congress
vided. These
<
of
estimates
borrowing by the
estimates
of the
include estimates
said
Ford
administrative expenses,
models will
of
of
-
necessary
corporation,
amount of capital funds to be re¬
turned to the Treasury during the
fiscal year,
priced,
among
sembled.
ownership
corpo¬
is made for the
General
Accounting
Office
to
audit the financial transactions
each year
and to submit such
audits to Congress.
In addition,
certain general provisions would
require a stricter fiscal respon¬
There should be a definite co¬
sibility to the Secretary of the
Representative Leonard W. Hall, Treasury by these corporations
ordination of all existing trans¬
Republican, of New York, told'fMr. with regard to the issuance and
portation on land, water and
Wallace his statement didnrt seem
air.
: "
redemption
of corporation obto
gibe with assertions Jhe had
gations.
mixed
and
announced
ready
wholly-owned
to
cars.
The new lowerlighter-weight model al¬
will not be
the first cars to be as¬
prewar
and appropriations re¬
regard
rations provision
'
of engine is yet to be
determined, he said, adding that
three
differene kinds had been
The type
tried out.
Changei NRDGA Meeting
Second
The
_
Railroad Proposal
A
i
atten¬
tion to the application of the Eagle
y
Air Lines, which is a subsidiary
F of the Missouri Pacific Lines and
f the Texas and Pacific Railway.
I'i The Eagle Air Lines proposes to
:
I wish also to call your
StatesTennessee,
service 108 cities in ten
Louisiana,
Oklahoma,
Colorado,
Kansas,
Missouri, New Mexico
and Nebraska.
Eighty-eight of
Texas,
Arkansas,
these cities do
not
The
airline service.
commercial
the company are fully
described in a pamphlet accomof
plans
pai
ied by maps and very interest¬
been
committee, I suggest that
you study it as an exhibit of the
kind of air-minded thinking at
of your
What
may be the plans of other rail¬
roads, bus and steamship Compa¬
least
railroad is doing.
one
it is
the
opinion of the Transportation
As¬
nies,
I
cannot
but
say,
public good can come
from obstacles to the fruition of
sociation
such
no
experienced
Such blocks to
should be completely and
plans
by
any
transport agency.
progress
definitely removed.
Mr.
we
have
presented
gentlemen,
these recom¬
the Transportation
mendations of
Association not
as
Opportunity should be given
an
carriers
rail
for
engage,
to
advocate of
Hall
any
interest
Association's
represented
certainly not
as
the
the
in
membership,
a n
d
establish
to
In
1937
the
lines.
new
form of
any
of Com¬
Chamber
said:
Operators of
one
form of two specific recommendations for
transportation should not be immediate encouragement to small
barred
by law from
operating
other
forms
when
properly
business:
qualified by obtaining certifi¬
cates or permits as required for
other applicants.
1935
Chamber
International
The
Commerce
passed
of
2.
.to
Collaboration
between
rail¬
and road transport, espe¬
ways
mixed routes which
successively the railway
on
follow
and the road, is
desirable in the
best interest of users.
Association's
The
thesis
precept—is
fundamental
as
loans
guaranty of longprivate
by
financing
institutions, to provide capital fi¬
nancing to new and established
small-business enterprises.
resolution in
a
follows:
as
term
its
fol¬
Immediate revision of taxes
allow a larger "plow
back" of
by small business.
He
suggested increasing the excess
capital
profits tax exemption from $10,000 to $25,000 and other methods
the
of
invested
the
absolutely essential
the
tile investment is vitally depen¬
producer and the consumer suffer.
Association for a
transportation policy
Transportation
nah>nal
have been endorsed in their main
and
underlying
States
merce
(through
by
features
Chamber
United
an
of
the
Com¬
overwhelm¬
ingly favorable vote of its mem¬
ber organizations), the National
Industrial
Traffic
League,
the
American
many
Bar
Association,
and
regional and local organiza¬
tions.
National
link between the
producing machine and the con¬
sumer.
Clog it up and both the
been
has
change
made
by the fact that so many
members
Association's
Committee
the
of
Board and its Postwar
previously
the
found
have
se¬
prevent their
attendance. The Seaview Country
Club
would
dates
lected
unable
was
to
the conference at any
accomodate
other time.
Pennsylvania Hotel.
u
Conference
the.
turers
retailers
and
manufac¬
will
discuss
in and
pitch we'll get iomewhere after
this war," according to the Asso¬
"if
will
everybody
report continued that young
had made it clear that by
everybody he meant labor, man¬
"For
and
our
government
part,"
the
top
alike.
better
through
jobs
ing
selling
activities.
get
ciated Press from Detroit, June 1.
The
possibilities of closer cooper¬
ation in the postwar period as a
means
of creating and maintain¬
The Conference
as
planned will
begin with a dinner on the eve¬
ning of Tuesday,. June 26th, with
the 27th
devoted to this intertrade
discussion
and
the Asso¬
ciation's
of
board
directors
will
into session the evening of the
27th or the morning of the 28th.
go
exec¬
utive officer of the Ford company
many
"we plan
them
as
sibly
can.
fair
to
employ
After Tax Evaders
as
workers as possible and pay
high
day's
,
a
wage
as
we
pos¬
But there must be a
work for a fair day's
Funds
thau
are
of
retary
Budget
being sought by Sec¬
Treasury MorgenCongress
and
the
the
from
Bureau
to
cover
cost of
pay.
recruiting 5,000 additional treas¬
"Wages are a part of the prod¬ ury field agents whose work it
transportation.
If, Force it into the control of bu¬
They are not the result of will be to uncover cases of tax
through public apathy; political reaucrats under Government oper- uct.
the employer's generosity or the
evasion, the Associated Press re¬
assault, or financial default, an tion and all industry will be so¬
well-entrenched
bu¬ cialized as inevitably as night fol¬ employee's ability to bring pres¬ ported from Washington, May 24.
already
sure
to bear.
The minute you
lows day—and that will be a dark
reaucracy gains control or own¬
Stating that there were 1,500
start paying high wages for no
ership of transportation, noth¬ night indeed for the people of this
agents in this work at present,
work
you
create
a
situation Mr.
ing can save this country from nation.
•.
Morgenthau added that a min¬
where there is a lot of money and
State Socialism. Supply lines of
imum of 5,000 more were needed
It is for this reason, gentlemen,
dent
upon
business
the Marxist's first
are
targets.
It
the
/Transportation
Committee,
of
which Calvin
Coolidge was Chairman, in a com¬
prehensive report presented in
conjunction with the Brookings
The
This
necessary
pany, predicted a huge post-war
market for automobiles and added
agement
and controlling
of
26, 27 and 28, it was made known
on
(May
24),
by Lew Hahn,
NKDGA General Manager.
the
yesterday by the Commerce De¬
partment's Small Business Advis¬
ory Committee.
is
dates
Henry Ford, II, Executive VicePresident of the Ford Motor Com¬
Ford
tation
J., to the Pennsyl¬
Hotel, New York and the
will be changed to June
Absecon, / N.
vania
Consequently the scene of this
important
business' conference
will
be
the Penn
Top at the
Reconversion Plans
asserted,
20%
ciation will be transferred from
the
Seaview
Country Club at
the
of
Retail
tional
Ford Discusses
improving the cash position of
small business
as
recommended
of
lows:
About
activities
for the
corporation."
gress
Absecon Confer¬
by the Na¬
Dry
Goods Asso¬
to be sponsored
ence
At
1. Government
capital of this country .is in
transportation.
All manufac¬
turing, agricultural and mercan¬
recommendations
Miley wrote, "The government
corporation was designed as an
administrative technique in order
giving no details of tax
revisions he
said were needed
after the war, Mr. Wallace made
transportation, but solely in the
pubbc interest.
The
Mr.
Summarizing the situation,
While
of the United States
merce
the opponent of
development of
from
read
book, "Whose Constitution," which
the Congressman said referred to
a system of "free competition and
the devil take the hindmost," and
in another place mentioned a "co¬
1
;*
Representative
Mr. Wallace's
made in the past.
to obtain maximum efficiency and
through sub¬
effectiveness in certain specified
vehicle serv¬
fields of activity. The advantages,
ice on highways- on equal terms operative commonwealth."
however, resulting frbm the use
with
all
other
transportation
Mr. Wallace said he believed in
of the corporation as such a tech¬
agencies in the same field. This a co-operative way of life where
nique, raise unusual problems in
should include the right to pur¬ it is most efficient and the corpo¬
the realm of administrative and
ration
way
of
life
where
it
is
most
chase, equally with all others,
fiscal management as well as in
lines then in operation as well efficient.
the over-all responsibility of Con-/
either directly or
cially
and
Chairman,
of the
Users on
coordination:
30, 1933, urged
Jan.
as
If this pamphlet has
brought to the attention
ing statistics.
not
Committee
Railroads and Highway
sidiaries, in motor
have any
now
.
Joint
The
devel¬
advances
engineering
oped in war production, but will
not be drastically different from
quired to provide for the reissu¬
ance of authorized capital or the
restoration of capital impairments.
With
that the first Ford
incorporate a number
will
wide
self
be
seen,
much
therefore, that
its
whole field of
tem of free
perspective
even
the
beyond
of
scope
and
we
transportation it¬
into the
problems,
our
American sys¬
enterprise.
Transpor-
look
upon
the
amend¬
to
what
have today.
we
buy
with
nothing
it.
that's
at
once
to
enable the
department
thousands of
"Confidence is our first need- cases known to exist. He added,
for
HR 674 as of far-reaching
confidence that work brings re¬ "I have been
giving a lot of time
significance and earnestly urge ward."
myself
to
this
drive
we
are
you
to consider them in their
Ford said that the WPB's pro¬
making
against
people in the
bearing upon the policy which is
black market who are not paying
gram of 200,000 cars during the
ments
Association's
reaches
that
which
we
have
proposed
recommended by the Transporta¬
remainder of 1945 did not permit
tion Association of America.
any company
to produce its quota
to
prosecute
taxes.
this."
I'm in
the
dead
earnest
about
Volume
Number 4392
161
THE COMMERCIAL &
FINANCIAL CHRONICLE
2543
Steel Operations
Slightly Up — Cancellations I
Higher, but Fail to Keep Pace With Cutbacks
"Until
those
The State of Trade
it
as
affects
steel
mill
output
will
continue," states
from
"The Iron
to
steel
they have not opened
week and
war,
.
books.
"Apparently
puzzled
by
the
failure of its order board to clear
steel schedules and effect of mil¬
itary curtailments in the past
appreciable
'as
rapidly
mill order
on
had been expected,
as
has
WPB
space
followed
its
to
request
users
to cancel unnecessary orders
spot
inquiries
have
not
to
as
been
which
cancelled.
If its findings warrant, a full in¬
vestigation of maximum inven¬
tory violations may follow.
Even
-though such tactics might produce
minor openings on
steel sched¬
•
ules, prospects still are slight that
much if any steel will be availin the
third quarter
rated orders.
•able
'
on
un-
as
'will
probably never be shipped
•because of subsequent cancella¬
In the
tions.
keeping
meantime, however,
such
business
steel
on
mill scnedules has made the space
;
unavailable
for
which
material
could
definitely be utilized. This
situation is preventing an orderly
.estimate as to the availability of
.civilian
steel
.period
:
and
probably
hence
when
.cancellations
will
be
to
orderly
an
civilian
difficult if
a
industry
avalanche of
an
-
a
months
steel
that
change-over
presages
few
a
the
receive such
may
it
output
not
im¬
an
possible task.
"On paper the steel
permitted
fill
to
orders for civilian
industry is
steel
certain
Washington
is
able
to
given
or
even
long
as
promises
vague
mill
as
ness.
.
.
•
•
'
;
"Net orders this past week were
again the lightest
The volume in
so
some
far this year.
instances ran
much
as
65%
below
peaks
established earlier this year. Can¬
as
cellations
some
and
adjustments
amounted
cases
to
half
orders
and
decreased
be
can
1943,
nearby
have
deliveries.
Where
gaps
appeared
they have been
filled promptly by other war work
believed
Chicago
cline to
years
to
be
a
factor
in
quarter, especially in view of the
heavy
unrated
tonnage
now
pressing for scheduling.
How¬
ever, there may be noticeable de¬
cline in steel
demand, in view of
many problems of changing
to
civilian
production.
Among
drawbacks, to heavy -steel con¬
the
sumption in the transition are dif¬
ficulties of proper timing of va¬
manufacturing
building projects.
assemblies
or
market
their
products at
normal
civilian
may
District ingot rate de¬
95.5%, the lowest in four
with the exception of strike
periods.
"Shell
steel
cancellations
are
reaching the mill level and June
schedules
at
some
mills
call
for
production drop of about 50%.
Producers
are
closely watching
increased
demand
for
h i g h
a
strength steel currently running
at
a
volume about 50%
higher
,than in. 1944, with about half go¬
ing to direct war production."
The
American
Institute
June
on
and
Iron
Steel
announced
4
that
telegraphic reports which it
had
received
indicated
that
the
operating rate of steel companies
having 94% of the steel capacity
of the
industry will be 91.1 % of
capacity for the week beginning
June 4, compared with 91.0% one
week
and
95.1%
ago,
97.8%
one
a
them until price restrictions
be eased.
"Requirements
for
one
month
ago
year
ago.
The
rehabilita¬
in
Europe are beginning to
shape up. At least 20,000 tons of
plates have just been distributed
under
lend-lease
14,000
tons
of
for France
shapes
have
and
been
placed with one mill. How much
type of order will be placed
of this
"Pig
iron
April
4,785,659 net tons, com¬
with
5,227,790
tons
in
pared
5,243,410 tons in April,
1944. Cumulative tonnage for four
months
this
was 19,521,211
$21,082,127 tons in
the
comparable period in 1944.
Capacity engaged in April was
year
against
86.4%
compared with 91.4% in
March and 95.3% in April, 1944.
"Alloy steel output in April
totaled 918,378 net tons, against
992,143 tons in March. The April
tonnage
tons
made
was
from open-hearth furnaces
322,683 tons from electric
and
furnaces. Hot-topped carbon steel
production in April was 1,425,964
tons, compared with 1,479,123 tons
in
March.
"Average
composite
prices of
steel and iron products are steady
at
Office of Price Administration
ceilings except for steelmaking
which is slightly below be¬
scrap,
of
cause
weakness
the
in
East.
Finished steel composite is $58.27,
semi-finished
steel
^
$37.80
and
operating rate for the week be¬
ginning June 4 is equivalent to
1,668,600 tons of steel ingots and
steelmaking pig iron $24.05. Steelmaking scrap composite is $19.00."
castings,
Lancion to Confer with
tons
one
one
one
compared
week
month ago,
year
of
of
summary
as
1,666,800
1,741,900 tons
and 1,751,900 tons
ago,
on
Cleveland,
in
its
the iron and steel
June 4, stated in part
follows:
"Prospects for rolling of much
unrated steel during third quarter
are not
bright, except possibly in
plates.
/ "There is a possibility the situa¬
tion may change in the next few
weeks, but is not regarded as
probable.
Recent
cancellations,
1944.
that
for
a
date
convenient
for
both
of
crease
The
1944
Governor
New
Republican
Thomas
E.
of
York, has also been asked to
the White House.
sum
by
the
corresponding week
last year, a decrease of 13.5%.
Britan's
Export
Trade
The
the
price
well
was
past
maintained
week.
per
and
as
whole
a
Wholesale
increased
sonal
merchandise
bask
in
two, international
tions issues, according to
Week's"
ness
report
on
repara¬
v
,:
war
.?
requirement, London will demand
a
"If
German
heavy industry is
revive, London will
to
demand
order
to
to
boost
be
true
"The
a
share
The
exports.
of
of output
domestic
release
same
may
goods lines.
consumer
that Britain
rumor
ifi
output
is
an¬
gling to become the postwar oil
distributing center for western
Europe through enlargement of
the wartime pipelines under the
Channel to the continent shouldn't
be taken too
seriously. Important
as the 1,000,000 gallon a day de¬
livery of oil was during the mili¬
primary interest in Britain."
Coal, Coke and Crude Oil Pro¬
last
Food
continued
popular as
bath¬
ing suits, and play clothes. Black
selected dresses,
and white dresses
Retail
lar-priced
especially
were
stocks
of
popu¬
dresses
cotton
were
fairly adequate and volume was
generally above that of last year.
White shoes, millinery, hand¬
bags, and toilet articles were po¬
pular. Volume in piece goods was
maintained in woolens, decreased
in
cottons,
and
increased
in
rayons. Volume in men's furnish¬
ings continued to be held down
by small selections.
Garden
nishings
ended May
26, 1945, sales
4%, and for the year to
date by 12%.
U. S. Casualties
A
report
them
and
and
supplies and home fur¬
heavily demanded
were
sales
well
were
These
fered
three
in
months
of
maintained.
increase of 6,798
Paper Production
duction
for the
—
week
Paper
pro¬
volume
about
was
even
previous week, with
A
terest in good
the
quality.
Despite continued
ended May
with
de¬
consumer
good sales of fresh pro¬
92V2% of capacity for the preced¬
duce,
ing week, the American Paper and
Pulp Association's index of mill
activity disclosed. As for paperboard, production for the same
period was reported at 97% of
year
ago.
volume was under a
Meat and poultry sales
last
week
26
was
92% of capacity, as against
Failures
Decline
—
failures
number
Inc.
reports
against
and
1944.
33
15
in
in the
the
in
Dun
12
comparable
& Bradstreet,
12
year
Business
markets
last
$5,000 or more fell from
week
to
9
in
the
week
just ended, and were a little over
at
4
:
\
;
to
8%
above
were:
west 6 to 10,
Pacific Coast 7 to 11.
in
many
remained
wholesale
largely
un¬
an
last week's
of Army casual¬
reported today by UnderSecretary of War Patterson and
corresponding figures for the pre¬
ceding week follow: Killed 183;563 and 181,739;
wounded, 553.088
and 550,506; missing,
52,746 and
100,622 and 96,-
Of the
wounded, 309,646 have
returned to duty.
Similar figures for the Navy:
Killed, 43,534 and 42,807; wound¬
54,380 and 52,005; missing,
10,709 and 10,505; prisoners, 4,245
ed,
and 4,247.
Patterson also named the
"hardest hit" divisions in the
These
are
fered
casualties
normal
five;
war.
outfits which have suf¬
strength
in
the
of
excess
of
infantry
an
division.
They were the Third, Fortyfifth,
Thirty-sixth,
Ninth
and
Fourth
infantry
divisions.
All
fought in North Africa, Sicily or
Italy, or a combination of the
three
before
serving in France
and Germany, with the
exception
of
the
Fourth Division.
The
losses
on
Normandy
of
these
The
on
lat¬
D day.
divisions,
initial
reports received
through April 30 and still subject
to
revision, follow:
Killed W'ded
Mis'g Totnl
Division-
6,240
24.793
3.191
34 224
15th
Division—
3,747
19,403
4,403
27 553
Kith
DivisionL 3,974
19,052
4,317
3.834
17,424
1,460
27,343
22,724
3,808
16,951
791
21,550
Ninth
Division
Fourth
.
Division
Bank of France Notes
Issued
by Allies
No Longer Legal Tender
It
was
made known
on
June
I
that the Federal Reserve Bank of
New
York
has
received
fjrm
Banque de France, Paris, a cable¬
gram reading in part as follow v.
"This is to inform you that be¬
ginning the morning of June 1
notes of the Banque de France
of
50
of the
france
and
over
and those
amounts issued by the
allied armies in France will cease
to
be
to
be
same
proved supply situation. Although
fall openings brightened the scene
legal tender and will have
exchanged for new notes.
We request you to cease imme¬
diately purchasing these notes and
in
ask the banks of your country to
tained
of
5
the country
for
3, East 5 to 8, Middle West 3 to 6,
Northwest 4 to 7, South and South¬
changed
week
the
for
Regional percentage
New England 0 to
ago.
increases
of last
same
volume
estimated
failing
previous week
Large failures involving liabil¬
ities
was
a
concerns
the
lower
were
well sustained.
Retail
In
28, commer¬
food
country as a whole, as shortages
spread. With supplies of eggs and
fish large in some regions and in
good demand, generally volume
was
the week ending May
cial
and
industrial
over
as
Third
mand and
five
breakdown
ties
active in¬
an
suf¬
and
report.
based
as
casualties,
years
fighting, represent
fiber, and linen rugs sold as soon
they arrived; selections of floor
coverings were narrow. Furniture
average
million
Army has lost 890,019 men
Navy 112,868, a total of
production
statistics
and
crude oil produc¬
tion figures for the week ended
May
26,
1945,
see
subsequent
pages of this section.
coke
daily
the
the
1,002,887.
ter landed in
coal
passed
mark, the Associated Press reports
Washington, May 31, and
from
Many stores reported that cotton,
weekly
ccmbat
World War II shows
have
to
American
on
casualties in
and
duction— For
com¬
by
rose
57,802; prisoners,
featured.
This
year.
gain of 2% in the
week.
For the
four
478.
Cottons
Re¬
department
York City for
a
volume, however, dropped moder¬
ately compared with the previous
consumers
textiles.
Federal
iifdex1,
week and for last year.
tary period, shipping contineus to
be of
to
the
toilet articles all sold well.
"The moment German coal pro¬
duction satisfies Allied military
share of the surplus in order to
release domestic coal for export.
continued
spotlight.
Men's
sportswear,
garden
equipment,
summer
home
furnishings
and
"Busi¬
the
and business abroad.
of
with
preceding
Trade—
ably
its
in
states.
Despite unseasonably cool weath¬
er, retail volume for the country
re¬
better spirit ob¬
a
in NeW
period
weeks
year
export trade as soon as
possible will raise one, and prob¬
vive
to
Bank's-
The
Retail
the
In the wholesale
shortage
pared
dur¬
one
week
over
the weekly period to May
26,1945,
increased by 15% above the same
index
The
past
According to Jhe
commodities, compiled
Bradstreet, Inc., dis¬
firmness in wholesale prices
corresponding date
it stood at 171.77.
ago
Revival
determination
acute
&
the
the
of
here,
store sales
index represents
of
slightly in
the previous week, according to
Dun & Bradstreet, Inc.
Women's
summer
apparel and other sea¬
—Britan's
previous.
markets
serve
registered 176.86 on May 29, as
against 176.76 a week earlier, For
electricity
160,400,000
kwh.,
with 185,400,000 kwh.
the
Tuesday last by the woolen in¬
dustry in presenting a plan to the
rye,
total
Dun
ing
to
for
precipitate rise
are entertained that a bet¬
ter outlook for worsted
goods may
result from the steps undertaken
food
Wholesale Commodity Price In¬
dex
The daily price index of
Local distribution of
amounted
nominee,
Dewey
lambs.
the
ate
1S45,
Hopes
pound of 31 foods in general use.
14.6%.
year.
ing.
and
For
May 26,
tained due to the fact that efforts
are at last under
way to reLcve
the
cheese, and
Declines occurred in sheep
which
the
week of
being arranged for the meet¬
included
closed
k.
the
that
week
week
in
a
WPB to this end-
steers.
May
City
sive week without
27, 1945, comparing
with 188,800,000 kwh. for the cor¬
responding week of 1944, or a de¬
kwh.
York
the
wholesale
ended
on
161,100,000
ended
President Truman's in¬
vitation to confer with him, and
was
both
in
—
Presidential nominee in 1936, has
accepted
The
weeks
price index, compiled by Dun &
Bradstreet, Inc., as of May 29 re¬
mained at $4.08, the third succes¬
wholesale
Business
M.
—
Consolidated Edison Co. of New
York
reports system output of
for
fail¬
one
and
gain of 1% (revised)
a
preceding week.
showed
the Same date two years
ago when
it stood at $4.11. Advances for the
ago.
dropped to the lowest number this
year and were less, than a third
Alfred
compared with
the previous week
a
sales increased by
3%, and for die
year to date by 12%.
week
Canadian
on
Retail sales volume here in New
year ago.
no
the
four
re¬
half
change.
This
2.0% above last year's $4, but
it represented a drop of 0.7% from
year
Landon, former
Kansas Governor and Republican
that
as
a
in
was
corre¬
one
as
Atlantic
less than
were
were
changed
Com¬
the
Middle
sales
ended May 26,
by 9% and cam-
increased
pared with
oc¬
Wholesale Food Price Index Un¬
approximately
above
the
store
for the week
1945
commer¬
corresponding week of 1944.
similar
a
vious Week.
President Truman
in
cor¬
capacity, unchanged from the pre¬
The White House has announced
ago.
"Steel"
markets,
to
above the
dex
unchanged
retailing and
numerous
ures
an¬
increase of
sponding weekly period
of 595,695
up
In
There
period of
increase of 28,654 cars, or
an
0.9%
March and
tons,
with
allowed
in
as
4,329,605,000
May 26,
1945, from 4,377,221,000 kwh. in
the preceding week.
Output for
the week ended May 26,
1945, was
the next few
production
for
1945,
Production—The Edi¬
son Electric Institute
reports that
the output of electricity decreased
also
totaled
1.6%
or
compared
"Pricing is an important ele¬
ment, as many small manufactur¬
ers claim they will not be able to
freight
an
in
gion failures
Electric
rious materials and parts required
in
last
year
Railroads
was
Small fail¬
3,
cial service. The Middle Atlantic
and New England States
accounted
for all but two of the week's fail¬
kwh. in the week ended
"Under this situation it would
not appear there will be
any dras¬
tic cut in steel
output in third
months is not certain.
the
This
at
Most of the week's failures
3.4% is shown.
to
essential civilian requirements.
of
are
American
cars,
pared
backs has been moderate and has
had
relatively little
effect
on
remained
curred
13,803' cars, or 1.6% above the
preceding week this year and 13,-
Europe.
Decline in
backlogs as a result of cut¬
under lend-lease in
require¬
types of steel
of
nounced.
as
year ago.
is
still below that of
last
year ago.
country-wide basis, as taken frem
the Federal Reserve
Board's in¬
in the correspond¬
from the previous week(
May 26,
882,437 cars, the Associa¬
totaled
tion
revenue
ended
responding week of
.the gross
ments for these
of
how
in
incoming order volume.
Hardest hit have been alloy steel
1,666,800 net tons
1,751,900 tons one
week
shifted from
tion
.
loadings
steel
schedules
cannot accommodate unrated busi¬
to
616
equipment
0.1%
and
ing week
ures.
the
appraise
carry
up
rate
needs in the Pacific and estimate
much
of
16
a
a
Department
half of the
ures
Railroad Freight Loading—Car-
more
1, but from
a practical standpoint
delivery schedules cannot be
week's
rate
ago.
Influence
become
may
firm
after July
uses
pared
pronounced
been expected.
cutbacks
profit under present
high costs and lack resources to
set
•
as
pronounced by the end of June
or
"There is little doubt that many
•steel orders now on the books
had
of
with
"orders
month has not been
operating
increase
an
equivalent to 1,668,600 net tons of
ingots and castings, com¬
up any ♦>
mainly in Army aircraft, have not
been
appreciably
reflected
in
week's
last
Age" in its issue today (June 7), which further
goes on
"Cancellations of steel orders have failed to
keep pace with
contract cutbacks and although
higher than at any time in the
say:
war
This
ago.
represents
was
week and
(Continued from page 2534)
ity for the week beginning June
4, compared with 91% one week
in
charge of the big push against Japan have-, all
their plans 'ready to go/ the current confusion
over cutbacks and
.cancellations
volume
some
last
week
demand
and
due
the
to
sus¬
unim¬
apparel markets, buying
has not yet reached its peak. Food
act in the same manner."
Thursday, June 7, 1943
CHRONICLE
& FINANCIAL
THE COMMERCIAL
2544
Announce
Convoy
System in Atlantic Ends
week of April and nearly 2% higher than at thi? time
year.'"%V.'
above the last
Moody's Bond Prices And Bond Yield Averages
bond
computed
(Moody's
given in. the following table. -
last
yield averages are :i
prices and bond
|
4.;, "
1945—
Y-
Dally
Averages
':..
.
rate*
115.43
122.36
115.43
Indus.
119.20
mary
119.20
wheat and for lemons.
119.00
115.63
107.44
112.37
115.43
107.44
112.37
114.85
119.20
120.63
120.63
119.00
115.43
107.44
112.37
114.85
119.20
115.43
120.63
119.00
115.43
107.44
112.37
114.85
119.20
115.43
30i—i
Stock
i24—
115.63
107.44
112.37
114.85
119.20
level of
115.43
120.84
118.80
115.63
107.44
112.37
114.85
advance
115.43
120.63
119.20
122.25
115.43
120.63
118.80
115.43
107.44
112.19
114.85
119.20
122.29
for
115.43
120.63
118.80
115.43
107.44
112.19
114.85
119.20
122.29
120.43
118.80
115.43
107.44
112.19
114.85
119.20
122.29
115.43
115.24
120.63
118.60
115.43
107.27
112.19
114.66
115.24
120.43
118.60
.115.43
107.27
112.19
114.66
119.20
122.33
119.41
122.31
114.66
21.-1 J
112.19
119.41
fcr
115.43
120.63
118.80
115.43
115.43
120.63
118.80
115.43
107.27
112.19
114.66
115.43
120.63
118.80
115.43
107.27
112.19
114.66
119.41
122.31
115.24
120.63
118.60
115.43
107.09
112.19
114.46
119.41
122.31
107.09
112.37
114.46
119.20
'
122.25
115.24
120.63
118.60
115.43
115.24
120.63
118.60
115.43
107.27
112.19
119.20
1
122.19
114.46
US'
118.60
115.43
107.27
112.19
114.46
119.41
12
—
19—
?910J—_-'
IK
h?
t
118.40
115.63
107.09
112.19
114.46
115.24
120.84
118.40
115.43
107.09
112.19
114.46
119.41
115.24
120.84
118.40
115.43
107.09
112.19
114.46
119.41
122.28
118.40
115.43
107.09
112.19
114.27
119.41
120.84
115.24
122.38
115.24
120.84
118.40
115.24
107.09
112.19
114.27
115.24
120.84
118.20
115.43
107.09
112.19
114.27
119.41
122.38
115.24
120.84
118.40
115.43
107.09
112.19
114.27
119.41
122.38
115.24
120.84
118.40
115.24
107.09
112.00
119.41
122.38
114.27
4-i.'2
115.04
120.63
118.40
115.24
106.92
112.00
114.27
119.41
122.38
115.24
118.40
115.24
107.09
112.19
114.27
119.41
122.38
120.84
115.24
120.84
118.40
115.24
107.09
112.19
114.27
119.41
122.36
115.24
118.40
115.04
107.09
112.19
114.27
119.20
122.38
120.84
122.44
115.04
120.84
118.40
115.04
106.56
111.81
114.27
115.04
120.84
118.60
115.04
106.56
111.81
114.46
119.20
122.59
120.84
106.39
111.44
must
115.04
119.20
122.21
114.46
114.85
121.04
118.40
114.85
106.04
111.25
114.27
119.20
and revision as
122.01
122.19
115.04
121.04
118.60
114.85
106.21
111.44
114.27
119.41
114.46
119.41
31LIZ
')23_i
,,
120.84
122.26
5-ZZZZZI.
27-t-P—
Mar,
122.26
115.24
119.20
118.40
115.04
,16—*-,
122.25
115.04
120.84
118.80
114.66
106.39
120.63
118.60
114.66
106.21
110.88
114.46
9-.:_
114.85
119.41
122.47
2_'_ J
114.66
120.43
118.60
114.46
106.21
110.70
114.27
119.61
122.05
23-ill
121.92
114.GS
120.02
118.60
114.46
106.04
110.52
114.08
119.41
121.97
114.46
120.02
118.60
114.27
105.69
110.15
114.08
119.41
109.97
114.08
119.20
.
■V-'
,
'TGL-h
Jan.
9
121.58
114.27
119.82
118.40
114.08
105.69
121.33
114.08
119.82
118.00
113.89
105.34
109.60
114.08
2—
120.88
113.89
119.41
118.00
113.70
105.17
109.24
113.89
118.60
26—
High.)'1945;—
1945—
Low
YekVXk'o
June; 5,!?1944_
1
122.59
115.43
121.04
119.00
115.63
107.44
112.37
115.04
120.55
113.50
118.80
117.80
113.31
104.48
108.52
113.70
118.20
116.80
111.81
102,63
trols, materials allocation,
tics will attempt promptly
5,
'
1943-
119.93
110.34
118.40
116.02
111.07
97.78
106.04 113.70 117.00
MOODY'S BOND YIELD
A
Daily
v"-y.'
t
'
:
s
211-C—
"
2.88
3.31
3.04
2.91
3.31
3.04
2.91
2.69
3.31
3.04
2.91
2.69
2.88
2.62
2.70
2.88
2.88
2.62
2.71
2.88
Exchang e
1.64
2.83
2.62
2.88
2.62
,
2.87
3.31
3.04
2.91
2.69
2.71
2.87
3.31
3.04
2.91'
2.69
2.88
3.31
3.05
2.91
2.69
3.05
2.91
2.88
3.31
3.05
2.91
2.69
2.88
3.32
3.05
2.92
2.69
2.88
3.32
3.05
2.92
2.69
2.88
3.32
3.05
2.92
2.68
2,88
2.63
1.64
2.89
2.62
1.64
2.89
2.63
2.72
1.64
2.88
2.62
2.71
•
2.88
1.64
2.88
2.62
2.71
■
2.88
3.32
3.05
2.92
2.68
2.83
2.62
2.71
2.88
3.32
3.05
2.92
2.68
2.89
2.62
2.72
2.88
3.33
3.05
2.93
2.68
rlter::
1.65
,ii
10-Z.Z—
k',
—
7——
r*ZZZZIZ
;•
2.89
2.62
2.72
2.88
3.33
3.04
&2.89
2.62
2.72
2.88
3.32
3.05
2.89
2.62
2.72
2.88
3.32
3.05
:
1.64
,
1.64
14
1.64
2.89
1.64
2.89
.
2.61
2.73
2.87
3.33
3.05
2.61
2.73
2.88
3.33
3.05
-
'
2.93
2.69
2.93
2.69
2.93
2.68
2.93
2.69
2.93
2.68
i
27-y„-
3.33
3.05
2.93
2.68
3.33
3.05
2.94
2.68
1.63
2.89
2.61
2.73
2.89
3.33
3.05
2.94
,2.68
1.63
2.89
2.61
2.74
2.88
3.33
3.05
2.94
2.68
The
2.94
2.68
for the
2.88
3.33
1.63
2.89
2.61
2.73
2.89
3.33
3.06
2.94
2.68
2.94
2.68
1.63
2.90
2.62
2.73
2.89
3.34
3.06
1.63
2.89
2.61
2.73
2.89
3.33
3.05
2.94
2.68
1.63
2.89
2.61
2.73
2.89
3.33
3.05
2.94
2.68
1.63
2.89
2.61
2.73
2.90
3.33
3.05
2.94
2.69
3.36
3.07
2.94
2.69
1.63
2.90
2.61
2.73
1.62
2.90
2.61
2.72
2.90
3.36
3.07
2.93
2.69
6—
1.64
2.90
2.61
2.73
2.90
3.37
3.09
2.93
2.69
1.66
2.91
2.60
2.73
2.91
3.39 ~
3.10
2.94
2.69
1.65
J 3.09
2.94
2.68
2.90
2.60
2.72
2.91
3.38
1.65
2.90
2.61
2.71
2.92
3.37
3.11
2.93
2.68
9—
1.66
2.91
2.62
2.72
2.92
3.38
3.12
2.93
2.68
2~^j—
1.69
2.92
2.63
2.72
2.93
3.38
3.13
2.94
2.67
23—
1.69
2.92
2.65
2.72
2.93
3.39
3.14
2.95
2.68
16
1.69
2.93
2.65
2.72
2.94
3.41
3.16
2.95
2.68
1.72
2.94
2.66
2.73
2.95
3.41
3.17
2.95
2.69
L2-JU
1.73
2.95
2.66
2.75
2.96
3.43
3.19
2.95
2.71
-26.1J—
1.77
2.96
2.68
2.75
2.97
3.44 "
3.21
2.96
2.72
1945—
1.80
2.98
2.71
2.76
2.99
3.48
3.25
2.97
2.74
1.62
2.88
2.60
2.70
2.87
3.31
3.04
2.90
2.67
J—
23
16-,
Feb.
I0 9-L—
•a;
f.'
Jan.
High
1945-1—
Low
1
3.05
1.82
1944-
Cfune .,5,
2.81
2.73
3.07
•These prices are
(3%%
level
the
Illustrate in
a
r
*
-i
3.83
3.61
-
■
-
2.98
computed from average yields on the basis of one "typical"
mained
'*
'
129.5
130.5
107.4
106.8
106.6
106.5
104.9
+ 0.6
+ 0.8
118.3
118.3
118.3
118.3
117.7
0
0
+ 0.5
99.1
99.1
9.9.1
99.1
97.3
0
0
+ 1.8
84.6
84.6
84.3
83.9
83.9
0
+ 0.8
'
*'
104.3
104.4
104.3
103.8
+ 0.1
+ 0.1
117.2
117.2
117.0
115.6
0
+ 0.2
+ 1.4
94.9
94.9
94.9
95.5
0
0
—0.6
94.9
106.2
106.0
0
0
+ 0.2
106.2
106.2
94.6
94.6
94.6
94.6
93.3
0
0
+ 1.4
118.5
117.9
117.9
118.2
113.6
+ 0.5
+ 0.3
+ 4.3
94.8
94.8
94.8
94.8
93.6
0
0
101.1
0
+ 0.2
+ 1.0
102.1
102.1
102.0
100.5
100.5
100.4
100.3
99.6
0
+
0.2
+ 0.9
99.7
99.7
99.6
9.9.5
98.7
0
+
0.2
+ 1.0
19,
IN SUBGROUP INDEXES
3.5 Grains
1.4 Bituminous coal
————
Week
June 2,
Zl:Z;ZZv; Group
v--Z
Food
25.3
Fats
and
Farm
/<
—
—
Oils..
•j
1
Products——
Grains—:
Livestock
.y-
—
J——
17.3
May 26
Miscellaneous
Commodities
—
Textilee„
8.2
markets continued to edge
weekly report on wholesale prices
of 1945 more
safely entered
At least
sailed with 150 ships.
beginning
British ports.
cleared
or
one
convoy
Great
over
battles,
7.1
Metals—;
6.1
Building Materials
Chemicals and Drugs
1.3
Fertilizer
.3
compiled by
against
marine
attackers.
Month
Year
Week
Ago
Ago
May 26.
May 5,
June 3,
1945
1945-
1945
142.7
142.6
141.8
144.9
145.3
145.3
143.0
162.0
163.1 f:
163.1
Z 156.7
1944
137.5
167.4
167.4
167.2
155.1-
215.8
215.5
213.5
202.0
164.8
163.7
163.6
164.7
160.6
161.0
160.8
144.0
132.0
130.4
130.4
130.1
133.7
133,7
133.7
132.2
157.2
157.2
156.9
152.4
108.0
104.7
104.7
155.4
154.4
154.4
.125.4
125.4
125.4
118.3
118.3
118.3
117.7
104.4
Materials.
127.7
Fertilizers—
119.9
119.9
119.9
119.7
104.8
104.8
104.8
104.4
3,
1944,
on
combined.^——y—„
1926-1928
106.7.
June
on
$1,300,000,000 or there¬
bills to
about of 91-day Treasury
be
dated
and
7
June
mature
to
Sept. 6, 1945, which were
on
June
1,
offered
opened at the
4.
were
Federal Reserve Banks on June
of this issue are as
The details
follows:
"' •'
,
applied for, $2,071,391,000.
Total y accepted,
$1,302,298,000
Total
(includes $50,554,000 entered on a
price basis at 99.905 and ac¬
fixed
cepted in full).
lent
mately 0.375
per
approxi¬
annum.
of accepted
Range
equiva¬
99.905,
discount
of
rate
bids.
"
price,
Average
competitive
»
rate of
High, 99.908, equivalent
discount
0.364%
approximately
base
were:
June
2.
1945,
141,4
110.2:
140.7
May
• .,v
26
140.4
1945
'
137.0
109 fi
'
«nH
luy b' ancl
of
0.376%
Low, 99.905, equivalent rate
discount
approximately
per annum.
for at
accepted).
of the amount bid
price
was
was
maturity of a
a
on
June 7
simi¬
in the
$1,309,916,000.
amount of
Moody's iaify
0o?»ciHy tadex
—
257.3
i.'
-
257.3
257.2
251.3
May
22__-Z_____ —
Tuesday, May 29, 1945
Wednesday, May 30___
Thursday, May 31
Friday,
June
Saturday,
1
June
Monday,
June
Tuesday,
June
2_;
4
—
153.4
"
Farm Machinery
•Indexes
of the Treasury
4 that the
Secretary
Two
weeks
Month
Year ago,
1943
ago,
ago.
1.944
May
4
June 3,
High,
Low,
Juno
sub¬
Bill Offering
The
There
.3
All groups
nights, were
aerial"• and
Z-ZZ
fought
lar issue of bills
.3
100.0
extending
some
several days and
per annum.
Cottonseed Oil——
issued on May* 31, .which
further said: "The Bureau of Labor Statistics all-commodity index
for the week advanced to 105.9% of the 1926 level.
It was 0.2%
its
0.2
Latest Preceding
upward during the week ended May 26.
Higher prices for fruits and
vegetables and bituminous coal were largely responsible for the 0.1%
rise in the general level, said the United States Department of Labor
in
0;3
price index
disclosed that up
Results Of Treasury
1—
—
de¬
than 9,000 convoys
FROM
1935-1939=100*
10.8
Ended
the
to
submarine
over-age
operations.
convoy
The Admiralty
1945
1945 TO MAY 26,
bond
Up 0,1% for Week
British
in
(56%
V;
commodities in primary
1.3
101.9
Cotton
for
+
Compiled by The National Fertilizer Association
23.0
Prices
+ 0.6
104.4
American
warfare.
0.8
of
technique
"pack"
the low
list of bonds used in computing these indexes was published
d r +>.
+
?. WEEKLY WHOLESALE COMMODITY PRICE INDEX
;
Total Index
Prices
+
117.2
wholesale commodity
Fertilizer Association and
2.85
the latter being the true picture of the bond market.
1943, page 202.
change for naval bases, were used
129.5
declines.
more
14,
2.4
130.5
11 price series in the index advanced and 2
declined; in the preceding week there were 8. advances and 3
declines; in the second preceding week there were 7 advances and
Bears to the
of Jan.
stroyers, given to England in ex¬
unchanged.
Each Group
t-The.latest complete
+ 5.5
During the week
and do not purport to show either the average
years)
+1.9
0
0.8
week of June 2, 1945,
movement of actual price quotations.
They merely serve to
comprehensive way the relative levels and the relative movement
maturing in 25
of yield averages,
In the issue
3.11
2.85
2.73
+0.2
+
123.7
made public on June 4,
advanced substantially to a new high
of 141.4 from 140.7 for the preceding week.
A month ago the Index
stood at 140.4 and a year ago at 137.0, all based on the 1935-1939
average as 100. The Association's report continued as follows:
The farm products group remained unchanged, the gains in
the cotton and grains indexes being offset by a decline in the live¬
stock index.
The foods index advanced slightly, the higher quota¬
tions on cheese and potatoes being partly overcome by a lower
quotation on cottonseed oil. The metals index made a substantial
increase due to a higher quotation on finished steel, as did the fuels
index because of the higher quotation on bituminous coal. The in¬
crease in the building materials index was due to higher prices on
wire nails and building brick.
All other groups of the index re¬
National
average
coupon,
or
3.15
1.87
1945
+0.1
4-28
2.80
3.39
3.59
i
'1943-
1944
103.9
products
2 Years Ago
June < 5j;
1945
weekly
The
5
YeayAgo
and the system was ex¬
war,
panded after Germany resorted to
long-range bomber attacks and the
105.7
5-19
tenders of
2.88
2.73
Shipping convoys were ordered
cf
Commodity
Price Index Rises Substantially to to High
2.88
make
immediately after the declaration
National Fertilizer Association
2.73
to
Japan.
announced
2.73
2.61
attempting
or
their way to
*
2.61
13U_—.
31
farm
' 2.61
20-„u—
Mar.
Other
2.89
2.90
'.'®v
and
2.89
2.89
Atlantic
Increases
vegetables
Fruits
1.64
1.63
lieved
1945
foods—.;
MAY
re¬
105.7
PERCENTAGE CHANGES
1.64
3.05
twelve
Percentage change to
5-27
4-28
5-12
5-19
Ali commodities other than farm
products and
was
week that at least
"pirate" U-boats were be¬
riding somewhere in the
last
ported
1945
products
"
•
Apr.
Semimanufactured articles——_
Manufactured products
All commodities other than farrp
It
for.
accounted
been
105.8
commodities——
materials
2.69
3.31
2.71
2.72
1.64
marines either had surrendered or
1945
106.2
Housefurnishing goods
.Z:
2.71
2.71
2.62
2.88
1.64
,;
2.71
2.61
2.88
2.69
Closed
1.64
Building materials
—
Chemicals and allied products
Raw
1.64
1
leather products
Miscellaneous
1.64
r12 > >
products
Farm
Foods
2.69
2.70
that the
105.9
5-26
commodities
ships appeared to indicate
last of the German sub¬
trade
l<om—
5-27
1945
1944
Commodity Groups-
2.69
2.62
Opening up of the Atlantic sea
lanes for independent sailings of
May 26, 1945
2.90
2.88
com¬
Channel.
and English
MAY 26, 1945
(1926=100)
2.90
1.64
in areas outside the
sail independently,
speeding the movement of ali
thus
complete reports.
FOR WEEK ENDED
.
3.04
i7z:-,-
18—
Hw
.
3.04
2.87
1.65
;
Indus.
P. U.
R. R.
2.70
1.65
.
24i)$J
f.!
1.:
3.31
2.62
Stock
£6——251CI
'
:
WHOLESALE PRICES
3.31
2.88
1.64
28^
w
.
1.63
'•
ikZIZZZZ-
2.87
2.70
2.62
Baa
A
Aa
Aaa
2.88
1.63
Corporate by Groups*
Corporate by Ratings
rate*
Bonds
.
May
."•'i'tbaoui-L
.
.
Corpo¬
Govt.
Hi
...
e;j
.
required by later and more
products
Fuel and lighting materials
Metals and metal products
•
Averages
June
Avge.
ships
under
bat zone could
following tables show
The
»■
u. s.
„•
changing prices. The indexes
and subject to such adjustment
to report
Textile
AVERAGES
(Based on Individual Closing Prices)
.
1945*—
notation in its
the following
of rapid changes
considered as preliminary
be
Hides and
t.>
■
116.02
102.30, 113.50
sailed
have
would
convoy
(1) indexes for the principal groups
of commodities for the past three weeks, for April 28, 1945 and May
27, 1944, and (2) the percentage changes in subgroup indexes from
May 19, 1945 to May 26, 1945.
2 Years Ago
June
said
announcement
The
which
caused by price con¬
and rationing, the Bureau of Labor Statis¬
All
118.40
were
navigation lights at full brilliancy.
•
Note—During the period
'
112.19
restrictions
the previous
remained unchanged from
Department included
Labor
The
report:
118.80
119.61
119.92
the
and
industrial commodity groups
119.20
111.07
that blackout
lifted and ves¬
sels would be permitted to burn
stated
also
ment
Commodities—The recent increase granted by OPA to ocean traffic.
In
Washington
the. United
bituminous coal producers continued to be reflected in average prices
for coal which rose 0.2% during the week.
The advance was not States Navy made a similar an¬
large enough to affect the group index for fuel and lighting materials. nouncement.
Aside from this increase and higher prices for galvanized wire fence
While
the Admiralty did not
there were few changes in industrial commodity markets during the
specify what it considered nonweek.
The advance in wire prices was partially offset by a further combat zones, it was reported un¬
decline in quotations for quicksilver.
With the exception of the 0.1 /o officially that it includes the At¬
rise in the index for metals and metal products the level for all other lantic, Mediterranean, North Sea
119.41
■;vs .20—„
,13—l
.
120.63
122.34
9ht.
•i—v
Apr.
115.24
122.21
14—t
I
at the
ag
"Industrial
;
122.31
effective May 28, the As,
sociated Press reported from Lon*
don on that date.
The announce!
(
#
Admiralty announ,
suspension of war-time
convoys
in
non-combat
areas,
0.6% primarily due to the
markets and higher prices
last week of April prices for foods have
were approximately 2.5% above the last
'
• '"
■ ' *\'
week in May a year ago.
107.27
'162
j
,
the
ocean
prices in primary markets rose
in the fresh fruits and vegetables
rye flour.
Since
advanced nearly 1%
119.20
122.33
—
5.5%.
has been
122.19
i2__——,
•
reported for y
"Food
Exchange Closed
The British
ced
Lower market quotations were
Average prices for farm products were
the last week in April and the net advance over a year
markets.
118.80
■
'higher OP A adjusted
115.04
115.43
/ ;23.—
i /v
.
P. U.
122.17
26
Feb,
•
122.23
'• 25—c—
■
112.37
120.63
'
■'
R. R.
122.23
,29,_„___
.
107.44
115.63
115.04
'
...
119.00
120.63
;;
caused
Corporate by Groups*
31IIIIZIZ
+ 2
v
Bonds
122.45
Corporate by Ratings*
Aaa
Aa
A
Baa
119.00
May
'
Avge.
Corpo-
,
'
5
June
U.S.
Govt.
•
;
Because of
Products and Foods —
:ri "Farm
r
v
for increased costs and also minor season
advances, average prices for fresh fruits and vegetables,
^
in eastern markets, rose 3.5% during the wee^
Higher pr
also reported for corn, cotton and for sheep.
These increases
a rise of 0.8% in the general level of prices for farm products in pn-
(Based on Average Yields)
V
.;
ceilings to compensate
MOODY'S BOND PRICESf
1
,
announcement continued:
The
April.
Jan.
1944__
1
2___
High, May. 26_™..-_
Low, Jan. 24
J.
•Holiday.
—
257.3
2373
256.8
250.7
249.8
240.-
257.4
252.1
yolume 161
Number 4392
.
THE COMMERCIAL &
FINANCIAL CHRONICLE
2545
Weekly Goal and Coke Production Statistics
;
The total production of soft
coal in the week ended
May 26 1945.
is estimated by the Bureau of Mines at
11,815,000 net tons, an increRse
of 455,000 tons, or 4.0%, over the
preceding week, according to tN*
United States Department of the Interior.
Output in the correspond¬
ing week of 1944 was 12,286,000 tons.
The total production of soft
coal from Jan. 1 to May 26,
1945, as estimated at 238,970,000 net
cons,
a decrease of 8.0% when
compared with the 259,714,000 tons
produced
during the period from Jan. 1 to May 27, 1944.
30
in
showed
increase
an
May 26,
of
STATES
PRODUCTION
LIGNITE
IN
OF
BITUMINOUS
'
.
•
May 26,
.•
Bituminous coal & lignite—
Total, including
Daily
mine fuel
average
"Subject
to
1945
1945
11,815,000
11,360,000
1,969,000
1,893,000
__________i;/.
current
May
volume
1945,
week
■'
/.'
1944
PRODUCTION
2,048,000
Net
Round-Lot
AND
Short sales.
,
;
-Calendar Year to Date-
May 26,
May 27,
May 29,
1944
1945
1944
1937
45,000
1,369,000
20,616,000
26,963,000
23,841,000
19,790,000
25,884,000
22,649,000
1,224,000
43,000
1,314,000
130,800
122,800
143,500
2,382,200
•Includes
washery and dredge coal, and coal shipped
tExcludes colliery fuel.
JSubject to revision.
ESTIMATED
WEEKLY
PRODUCTION
BY
(The
ments
current
and
are
OF
STATES,
weekly estimates
by
3,148,100
truck
COAL
or
carloadings
and
river
ship¬
1944
_____
412.COO
390,000
350,000
Alaska——_
7,000
6,000
6,000
83,000
76,000
*92,000
Colorado
114,000
116,000
115,000
1,000
1,000
1,000
Georgia and North Carolina
Indiana
1,400,000
1,130.000
1,453,000
537,000
455,000
527,000
*
__
Iowa
42.000
41,000
Kansas and Missouri
35,000
128.000
978,000
114,000
977,000
166,000
Kentucky—Eastern—
Kentucky—Western
Maryland
^
960,000
350,000
376,000
30,000
41,000
380,000
_____
Michigan__i:__^l_____..._I___Jl—«'
3,000
>■
'3,000
2,000
Montana (bitum. & lignite)
80,000
70,000
79.000
New Mexico
26,000
30,000
37,000
—
North & South Dakota
(lignite)Ohio„__„,___.
Pennsylvania (bituminous)
,v'
34.000
J
134,000
131,000
138,000
3,1,900
1,000
2,000
■
124,000
108,000
135,000
Virginia
Washington
333,000
348,000
387,000
24,000
30,000
31,000
2,016,000
1,976,000
2,172,000
848,000
1,024,000
1,001,000
178.000
172,000
166,000
tWest Virginia—Southern
__.
Virginia—Northern—
Wyoming
JOther Western States
1.000
Total bituminous & lignite
/
10,645,000
•
-
for
the
week
ended
week last year.
^"
1
,
PERCENTAGE INCREASE OVER
—"
■
Major Geographical DivisionsNew England
Middle Atlantic
-
Central Industrial
West Central
Pacific Coast
—.
Total United States
•
8.
May 26
May 19
.V
*0.5
0.0
•3.2
*1.3
*3.0
2.2
4.7
1.9
6.8
7.9
6.7
8.2
8.9
*0.1
0.0
6.1
6.0
*3.3
*0.9
0.3
1.4
o-9
3.1
.
;
*2.0
1.5
t%
29,495
1,914,195
10,010
179,770
9.43
floor-
Total sales
56,280
___;
off
the
¥—
115,170
4.18
;
ists who
'
;
351,220
Customers' short sales
"The
firms and
fin
term
partners,
calculating
compared
with
Exchange
are
.
"members"
their
twice
the
short
included
SSales marked
includes
totai
includes
regular and
the
round-lot
only
which
"other
"short
all
percentages
sales
with
70,140
associate
sion.
total
volume
of
Exchange members,
their
on
members'
purchases and sales is
the Exchange for the reason that
from
restriction
by
are
with
"other
0.5
3.944,679
1,537,747
1,687.229
4,400,246
0.1
3.946,836
1,514,553
1,683,262
0.2
3,928,170
1,480,208
1,679,583
March 31
April 7
4,329,478
4,409,159
4,408,703
1.8
3,889,858
4.361,094
0.9
3,882,467
1,465,076
1,480,738
1,633,291
4,321,794
April 14
4,332,400
4,307,498
0.6
3.916,794
1,469,810
1,709,331
April 21
4,411,325
4,344,188
1.5
3,925,175
1,454,505
1,699,822
1,696.543
April 28
4,415,889
-4,336,247
1.8
May 5
May 12____
May 19
May 26
4,397,330
4.233.756
3.9
3,903,723
1,436,928
1,698,942
4,30^,381
4,238.375
1.5
3,969,161
1,435,731
1,704,426
4,377,221
4,245,678
3.1
4.329,605
4.291,750
0.9
3,990.040
1,381.452
1,615,085
4,203,502
4.144,490
1.4
3,925,893
1,435,471
1,689,925
4.264,600
4,040.376
1,441,532
1,699,227
4.287,251
4,098,401
3,866,721
3,992,250
1,429,032
1,425,151
1,440.541
1,688,434
1,705,460
1,702,501
Commis¬
Post-War Trend of
Discussed
Commodity Prices
by First National of Boston
'
TRANSACTIONS
FOR
THE
ODD-LOT
SPECIALISTS
ON
N.
19,
1945
of
Boston
in
its monthly
-
Total
a
more
normal
so
far
in this
orders
shares
27,082
;
1
,
800,150
j
$31,846,473
———
(Customers'sales)
Customers'
•Customers'
letter.
hand, farm prices
of
of
:r.
,V
]
s
Number of Orders:
short
other
Customers'
"To have
on
Y.
For Week
,
Odd-Lot Purchases by Dealers—
"The most important single economic factor in the
post-war pe¬
riod will be the behavior of commodity
prices," says The First Na¬
Bank
Number
value
ODD-
DEALERS
THE
EXCHANGE
Ended May
Number
Dollar
and
dealers
(Customers'purchases)
production
4,425,630
4,397,529
4,401,716
the
Odd-lot 8nles by Dealers
1,723,428
4,446,136
odd-lot
Week
sales."
1,592,075
March 10
with
the
STOCK
included
1.456,961
1929
1,702,570
filed
ACCOUNT OF
AND
sales."
exempt"
1,341,730
1932
1,538,452
by
STOCK
the Commission's
4,120,038
3,946,630
The figures are based upon
specialists.
LOT
exempted
4.110.793
1943
0.2
over
sion
sales.
are
the
series of current figures
a
reports
1"
including special partners.
these
volume
tinuing
on
Exchange,; con¬
being published by the Commis¬
78,839
i
account
special¬
handled odd lots
New York Stock
78,839
.
Total purchases—
Total sales..
the
16.30
0
{Customers' other sales
odd-lot
333,960
—
Odd-Lot Transactions for Account of Specialists'
for
of all odd-lot dealers and
17,260
—.
made
transactions
282,460
tOther sales
and
Exchange
public
on
May 30 a summary for the week
ended May 19 of complete figures
showing the daily volume of stock
112,120
Total purchases
pJ-fr Short sales—
Securities
Commission
3.050
Total—
?
have
The
47,190
_
.
>
Avenue, New York City*
NYSE Odd-Lot Trading
2.69
floor-
Total sales
J.
Fifth
4,200
52,080
.
Other transactions Initiated
vr ■'
Inc., Financial and Indus¬
Management Counsel, 475
48,505
Total sales
4.
Vice-
Finance Corpora¬
appointed William J.
Farthing as Acting Loan Agency
Manager.
Mr. Farthing has been
with the corporation since 1935
and for the past two years has
held
the
position of
Assistant
Loan Agency Manager.
186,765
the
become
Reconstruction
169,760
on
will
trial
tion
registered—
initiated
New
The Board of Directors <>f the
1,943,690
—
J. Ahearn, Jr.,
Manager of the
York
Loan
Agency.
Ahearn
pany,
1945
Total for week
T.
as
President Wm. B. Nichols & Com¬
(Shares)
4,325,417
1944
1944
4,464,686
12,
Block
total
sale„__*.
194
sales—
24,080
sales
-
'
24,274
Number of Shares:
able price
1945
June 23
may
<
tOther sales
says,
Kilowatt-Hours/
4,472,110
June 30
Members*
RFC
16.34
Exchange and
4.327.359
(Thousands of
March 17
March 24
9
,
Short sales
tional
previous year.
3
June 16
Ended
of
Snyder, Federal Loan
on
May. 30 an¬
that
resigned
Mr.
Curb
May 12
2.7
2.6
—
% Change
Week Ended—
Account
York
;
Total purchases*.
•
——Week Ended————
3.8
WEEKS
RECENT
for
New
Continuing the Bank
a healthy economy it is necessary that there be equit¬
relationships among commodities so that the various groups
can exchange goods with one another.
Wars not only cause a violent
upheaval in prices but also a dis-^
tortion in price relationships.
basis, the vacuum created by war¬
"During a period of hostilities time
restrictions
disapears and
a
spectacular
commodity
price prices tend downward. This is the
advance takes place because of general pattern expressed in sim¬
the superimposed heavy demands ple terms.
of governments for war goods and
"Since
this war began, com¬
equipment, the great expansion of modity
prices
have
advanced
credit, blockades, and the serious about 40% and this compares with
disruption of commerce and ship¬ the gain of more than 100% that
ping.
But some time after the took place during World War I
close of the
conflict, when the up to the time of the Armistice in
warring nations again return to November, 1918.
On the other
•Decrease under similar week In
FOR
the
on
JOther sales
rules
0.5
6.8
Rocky Mountain
Sales
•
transactions
JRound-lot
2.2
3.9
Southern States
DATA
PREVIOUS. YEAR
■
June 2
1,502,817
Stock
W.
Administrator,
nounced
1,337,827
Total purchases—
Short sales
June
2,
1945, was approximately 4,203,502,000 kwh., which compares with
4,144,490,000 kwh. in the corresponding week a year ago and 4,329,605,000 kwh. in the week ended May 26, 1945.
The output of the
week ended June 2, 1945, was 1.4% in excess of that for the same
June
John
Total sales
The Edison Electric Institute, in its current weekly
report, esti¬
mated that the production of electricity by the electric
light and
States
3.36
164,990
JOther sales.
J * 12,012,000
Eieciric Oielpsif for Week Ended June 2, 1945
Exceeds That for Same Week Last Year by t A%
2
345,187
Totai purchases
'■Si* ■'
strong upward
generated
was
Ahearn Leaves RFC Post;
1.424,920
Transaction for Account of Members:
Transactions of specialists in stocks in which
Other
was
employ¬
To Join Wm. B. Nichols Co.
Short sales—
1,000
11,360,000
United
3.97
16,450
j Total sales
2.
increased
ities. Recovery was brought aboutby private enterprise and not by
Government intervention,
f
328,737
Round-Lot
,
This
recovery.
floor-
;
are
demonstrated
256,240
JOther sales—
'
June
359,110
week
tlncludes operations on the N. & W.; C. & O.; Virginian; K. &
M.; B. C. <Sz G.;
and on the B. & O. in
Kanawha, Mason, and Clay counties.
JRest of State, including
the Panhandle District and
Grant, Mineral, and Tucker counties.
SIncludes Arizona
and Oregon.
"Less than 1,000 tons.
V-'*'
industry of the
9.01
30.300
Short sales
.
Utah
March
798,520
352.550
328,810
1. Total Round-Lot Sales:
they
below the 1926
was
which '
spread to all lines of activity. The
increasing profits were used to
employ more workers and to re¬
pair and expand plants and facil¬
680,280
Transactions
v
it
by
movement
had
■
698,000
3,012,000
to 43%
stimulus for
118,240
Total sales.
29,000
642,000
2,390.000
Tennessee
Texas (bituminous & lignite).
34,000
730.000
2,712,000
ranged
prosperous years
Thus
high prices were not neces¬
for prosperity. The accumu¬
lated shortages of the depression
period
provided
the
necessary
816,130
JOther sales
1.
though the annual
commodity prices dur¬
in this sequence a
;
1
transactions initiated off the
*
ment, higher prices, greater prof¬
its, and an advance in wages, and
Total purchases
I.
is
sary
f*
-
34,000
1
prices
that
t.
registered—
Round-Lot
the
have been long periods
followed
Total—
Total
after
so
even
level.
8,955,630
Total sales
May 20,
1945
or
commodity
from 38%
Odd-Lot
JOther sales
4.
May 12,
of
decade
Members,
of
Short sales—
district
1945
Arkansas and Oklahoma
power
of
Short sales.
Alabama
r
Account
Accounts
Total sales—
Week Ended
♦West
1945
_
for
Odd-Lot
year
average of
252,030
are
•Other
May 19,
5
12,
JOther sales
LIGNITE,
on receipt of monthly tonnage
reports from
of final annual returns from the
operators.)
state—
MAY
Total purchases—
railroad
total
Exchange and Round-Lot Stock
(Shares)
Short sales
authorized
subject to revision
and State sources
ENDED
the
of
During the May 5
595,402 shares was
8.703,600
the
a
hostilities, the post-war
low prices in
which there were high levels of
production and employment. Fol¬
lowing each of the depression pe¬
riods of the '40s, the '70s and the
'90s, industrial production aver¬
aged above normal for about a
This
Members*
Total sales—
1,544,100
from
AND
16.30%
Total for week
Transactions
of
"There
ended
—
for
of
close
ing those
Stock
of
SRevised.
BITUMINOUS
on
York
Other transactions initiated on the floor—
Total purchases
____________
IN NET TONS
based
are
New
Account
JOther sales
Beehive coke—
operations.
for
Total purchasesShort sales—
May 27,
1945
total
the
on
<
upon
of. comparatively
and Specialists:
\
1. Transactions of
specialists in stocks in which
COKE
§May 19,
•(Commercial produc.
States
Sales
trend
trend
Dealers
1945
1,275.000
United
Stock
Total sales—
.
2,056,000
tMay 26,
"Total incl. coll. fuel
633,680 shares or
1,943,690 shares.
JOther sales
1944
they
„
week
account of Curb members of
Total Round-Lot Sales:
L
Tons)
Week Ended
Penn. anthracite—
to
exchange of
Transactions
May 27,
1,915,000
these
Exchange, member trading during the week
12,286,000 238,970,00Ci 259,714,000
PENNSYLVANIA ANTHRACITE
(In
trading during the
amounted
trading for the
Round-Lot
OF
Exchange of 8,955,630 shares.
14.11% of the total trading of
2,110,115.
adjustment.
\
12
AND
"May 26,
1945 1
in
May 5 of
15.69% of the total trading of
8,634,260 shares.
or
that
on
the
WEEK
May 27,
sales
1914-
in the
downward.
on
member
On the New York Curb
ended
Except
ESTIMATED
transactions
with
2,708,738 shares,
—Jan. 1 to Date——
May 19,
other
nearly*fl0%,
as
past performance,
it is apparent
that, with the ex¬
ception of a possible inflationary
Stock
TOlte
NET
■Week Ended''
COAL
separately from
same
period.
"Based
published weekly by the Commis¬
shown
are
the
on
of the total
compares
Total
UNITED
18
May
advanced
about the
or
Exchange for the account of members
(except odd-lot dealers) during the week
ended May 12
(in roundlot transactions) totaled
2,927,737 shares, which amount was 16.34%
8,000 tons when compared with the
output
for the week ended May 19,
1945; but was 12,700 tons less than for
the corresponding week of 1944.
ESTIMATED
on
■"''.'•'.""■'v'
Trading
also reported that the estimated
production of bee¬
United States for the week ended
the
sales
figures.
the hard coal mines were idle.
When compared with the
output in
the corresponding week in 1944 there was a
decrease of 94,000 tons.
The calendar year to date shows a decrease of
23.5% when compared
with the same period in 1944. j
coke
Short
sion.
have
war
:;
Commission made public
round-lot stock transactions
for the account of all
members of these
exchanges in the week ended Mav
12, continuing
series of current
figures being
a
Pennsylvania anthracite for the week ended
May
26, 1945, as estimated by the Bureau of Mines, was
1,275,000 tons, an
increase of 1,230,000 tons over the
preceding week in which period
The Bureau
New York Exchanges
on
figures showing the volume of total
round-lot stock sales on the
New York Stock
Exchange and the New York Curb
Exchange and
the volume of
Production of
hive
Trading
■
,,The Securities and Exchange
OA
Customers'
•Customers'
short
sales...__
6,743
other
sales.___
667,262
:■-■
Customers'
Dollar
total
value
sales—
* 674,005
———
$24,760,216
Round-Lot Sales by DealersNumber of Shares:
Short sales
120
_
tOther sales
Total
sales
146,020
Number
of
146,140
—__.i_j.____,
Round-Lot Purchases
by Dealers:
shares—_____—
.
•Sales marked "short exempt"
ported with "other sales."
286,630
are
re¬
tSales to offset customers' odd-lot orders
and sales to
liquidate
is
a
less
"other
than
sales."
round
a
long position which
lot
are
reported with
*
THE
{■• 2546
estimates that the daily aver-
engineering
Civil
permanent mold and die castings
construction in
;
Petroleum Institute
continental United States
greater than in
refining companies indicate that the in¬
dustry as a whole ran to stills on a Bureau of Mines basis approxi¬
mately 4,950,000 barrels of crude oil daily and produced 15,194,000
barrels of gasoline; 1,449,000 barrels of kerosine; 4,667,000 barrels of
distillate fuel, and 9,670,000 barrels of residual fuel oil during the
week ended May 26, 1945; and had in storage at the end of that week;
48,265,000 barrels of civilian grade gasoline; 40,856,000 barrels of mil¬
itary and other gasoline; 8,246,000 barrels of kerosine; 29,184,000
barrels of distillate fuel, and 38,548,000 barrels of residual fuel oil.
,
000 for
in
totals
pounds, follow:
June
AVERAGE CRUDE OIL
PRODUCTION (FIGURES IN
Actual Production
•State
i
Oklahoma
•
Kansas
from
Ended
dations
Begin.
Previous
May 26,
May
May 1
1945
367,500
t385,700
+
300
385,150
333,650
367,500
269,400
t275,100
+
3,800
267,600
283,550
900
.950
t900
—-
——
90,000
Texas
East
495,300
Texas
"We M
Central Texas—
Texas
Earl
Sou ill
Texas
Texas
CoaM.nl
153,900
147,200
495,300
429,150
.137,150
138,200
138,200
379,800
379,800
364,100
355,650
355,650
307,050
563,300
563,300
519,850
2,176,150
42,170,717
2,170,000
.
Total Louisiana
49,800
53,000"
299,800
370,650
356,650
150
79,800
80,650
52,200
40,400
450
100
-
450
'
300
■
—
15
15
50
1,300
195,650
208,500
100
11,900
13,450
_.
205,000
195,950
+
13,000
12,550
+
67,200
63,000
Indiana J,
.
■,
Ind.,
Kyl)--w—
.Kentucky
47,000
46,600
Wyoming
112,000
107,400
Montana
--
—
Colorado
-j
-
23,000
20,300
10,500
11,000
California
Total United States
§947,000
production of crude oil only, and
derivatives to be produced.
20,700
+
800
+
450
107,400
85,750
550
20,700
10,950
21,300
200
■■■
4,866,765
allowables,
state
and
71,900
27,300
47,100
940,200
4,866,500
recommendations
•P.A.W.
63,750
850
—
3,926,565
3,919,500
947,000
Total East of Calif
1,950
103,900
105,000
105,000
New Mexico
i
27,700
31,000
Michigan
do not include
103,900
108,200
{
several fields which were
4,200
3.921,565
4,900
934,350
700
4,855,915
4,514,050
shown above, represent
for
6
days,
exempted entirely and of
no
the
ended 7:00 a.m. May 24, 1945.
31-day basis and
the exception of
(Figures in
thousands of barrels of
Figures
f'.-)
in
this section
stated:
% Dally Crude Runs
to Stills
42 gallons each)
include reported totals plus an
of
the
throughout
level
quarter.
Of
producers of
Committee. "The
publication fur¬
in part:
ther went on to say
Gas Oil
Domestic production
and
% Op¬
Inc. Nat.
& Dist.
sidual
porting
erated
Blended
Fuel Oil
Fuel oil
Other
5,923
5,575
5,477
age
732
99.5
92.5
1,748
tary
Ci¬
vilian
Grade
8,126
83.8
1,448
1,690
96.8
267
102.7
918
'1,517
1,429
2,349
2.114
55.9
74
58.7
219
714
197
584
& Arkansas—
2,098
Rocky Mountain—
17.1
12
92.3
38
21
35
20
District No. 3——
72.1
111
69.8
379
275
592
658
District No. 4
85.8
959
96.5
2,319
8,165
20,620
10,614
85.6
4,950
91.1
15,194
29,184
38,548
"40,856
to
Total U. S. B. of M.
85.6
4,908
90.4
15,269
29,470
Chinese, or 99% tin, continued
13,362
4,561
1944
Quicksilver
showed
Demand for quicksilver
improvement last week, and
the price situation remains un¬
settled,
Spot metal was available
no
at
ranging from
prices
$152 to
$155 per flask.
On forward ma¬
terial the inside figure could have
$2 per flask, covering
Spanish quick¬
been shaded
,
silver.
Uncertainty over war de¬
mands
continues
31,
the
May 30 totaled 1,048 tons.
to
retard busi¬
ness.
producers report
Coast
Pacific
Market
quiet, with quotations un¬
flask,
changed at $145 to $150 per
f.
b. Coast.
o.
Washington officials still regard
Silver
been amended
\
1
has
Order M-199
Conservation
all
by WPB, lifting
domestic
However, the Miscellane¬
Minerals Division points out
restrictions
on
the use of
silver.
ous
semi-fabricated
the lead
that the
Most
silver, chiefly wire and sheet, re¬
mains tight, and consumers de¬
siring to purchase the metal in
supply outlook as tight.
producers
and consumers
look
situation
the
for
somewhat this
Canada
of
in
lead
to
ease
summer.
produced 24,578,012 lb.
February, against 25,-
lb.
January
in
and
29,-
753,989 lb. in February last year,
according to the Dominion Bureau
Zinc
Allocation
zinc
were
supply of
still encounter
The designa¬
tions domestic silver and Treasury
silver have- been combined and
will be known as "domestic sil¬
these
forms
some
difficulties.
may
ver," according to the revised
regulations. The -quota provisions
that restricted users of domestic
of Statistics.
certificates for June
released last week. De^
granted
cut¬
backs in brass mill products, WPB
announced last week that "openview
In
of
38,624
41,309
recent
sharp
ending" of CMP on unrated orders
will go into effect immediately
War re¬
3,776; instead of on July 1.
56
permission by WPB to absorb
additional 20%
48,265
500
48,364
miles
for
a
communications
reduced from 313,month to 218,000
miles.
of the
an
silver
to
a
their
percentage of
silver in a
base
consumption of
for
Demand
1944.
galvanized
products is excellent.
Production of zinc in Canada in
totaled
44,520,588 lb.,
against 49,506,177 lb. in January
and 44,735,515 tons in February
last year, the Dominion Bureau
February
of
Statistics
of copper in March
69,185 tons of copper,
reports.
32,074
50,617
37,967
48,296
and
1944.
amounted to 8,246.000 barrels, as
week earlier and 7,744,000 barrels a year ugo.
kerosine
against 7,955,000 barrels a
at
May
26,
1945,
contained
against
and
tons in February
tons in January, the
64,572
67,707
Bureau of Mines
reports.
sium
in
of
March
6,658,000 lb.,
an
magne¬
amounted
to
increase of 11.7%
February, the Aluminum and
Magnesium Division, WPB, re¬
ports.
Recovery of the metal
over
Lead
Lead sales were
light last week,
largely because producers sold all
that they cared to sell for June
shipment.
As soon as the books
are
opened for July business the
curve on new business will move
from
secondary
sources
totaled
2,804,000 lb.* in March, an increase
o*f 32.5% over February's output.
Reflecting expanding war de¬
mands,
shipments
of
.
The
week
26
silver market last
unchanged at 25%d.
London
was
The New York Official for
silver
continued
foreign
with
44%c.,
at
domestic metal at 70 %c.
Cotton Exch. Dinner
Exchange
anniversary
The New York Cotton
with
primary
May
states.
will celebrate its 75th
Magnesium
Production
announcement issued
the
amount of
zinc used in the fourth quarter of
1.724
military grades, finished and unfinished, title to which
still -remains in the name of the producing company,
solvents, naphthas, blending
stocks currently indeterminate as to ultimate use, and 11,390,000 barrels unfinished
gasoline this week, compared with 12,106,000 barrels a year ago.
These figures do not
include any gasoline on which title has already passed, or which the military forces
mav actually have in custody in their own
or leased storage. tStocks at refineries, at
bulk terminals anjd in pipe lines.
§Not including 1,449,000 barrels of kerosine, 4.667,000
barrels of gas oil and distillate fuel oil and 9,670,000 barrels of residual fuel oil
produced during the week ended May 26, 1945, which compares with 1,546.000 barrels,
5,041,000 barrels and 9,646,000 barrels, respectively, in two preceding week and 1,609,000
barrels, 4,905,000 barrels and 8,434,000 barrels, respectively, in the week ended May
of
pound.
at 51.125c. per
Mine output
O. 8. Bur. of Mines
Note—Stocks
52.000
May 30
large block of
quirements
27,
but new supply
month will be
and
leave a fairly
consumers,
available for next
wire have been
Total U. S. B. of M.
aviation
52.000
52.000
Holiday
230,000 tons.
393
78.3
Louisiana Gulf Coast-
27,
52.000
1,732
2,219
May
52.000
52.000
7,048
1,146
Includes
May 29__
52.000
52.000
4,573
14,667
•
May 28
August
52.000
1,200
1,122
7,113
basis
May 26
July
52.000
9,108
382
1,888
1945
May 25_
June
52.000
52.000
52.000
52.000
52.000
823
136
3,939
May 19,
—
5,909
96
2,925
basis
May 24
365
174
91.9
1945
follows:
as
6,135
130.0
26,
market develop¬
week. The price
of Straits quality tin for shipment,
in cents per pound, was nominally
ments in tin last
1,046
65
May
There were no
cans.
3,696
1,229
788
basis
three-quar¬
of tin per 1,000
box, or roughly
ters
77.9
1,132
87.2
California
of a pound
base
96.0
198
81.2
Gulf Coast
will
257
344
District No. 2
La.
11,844,000
Electrolytic tin-plate used
contain 0.75 lb. of tin per
*
1.188
284
District No. 1
'No.
4,623,000
22,923,000*
1945.
59.8
71.2
Ind...111., Ky.__
Texus
of tin in
saving of some 646 tons
89.3
104
76.8
Texas
This
mand for Prime Western for gal¬
year have been removed.
metal for the stock¬
vanizing was good, but interest in
WPB restrictions on the use of
pile.
The supply in the hands of
High Grade was disappointing. foreign silver continue in effect,
the government now totals around
Galvanizers
have
been
Appalachian—
Inland
plus a fair
tonnage of foreign copper have
been sold so far for June shipment
substantial
Okla., Kans., Mo
cans, the American
announced last week.
will account for an additional
Co.
Can
Volume $21.0 Billions
623,743
.
Mili¬
incendiary bomb
castings, > extruded
sheet
and
forging
stock,
and
six-ounce
in
third upward. Sales for the week ended
Copper
tStocks JGasoline Stocks
of Re¬
fabricated products
on
cover
industry since April,
therefore on a
ity Re¬ Aver¬
Coast
East
tStocks
at Ref.
Capac¬ Daily
District—
Pro¬
duction
14,000
Tin
5,260,000
and Mineral Markets," in its is&ie of May
"The sharp cutback in brass requirements, chief worry of
§Gasoline
Refining
238,000
208,000
—,«««
Electrolytic tin-plate will be
used for packing evaporated milk
led to WPB action last week to release
brass mill products on unrated orders immediately# Demand for
copper last week again was slow.
The stockpile is certain to increase
over
the summer months, because purchases of foreign copper are
expected to remain at a high^
copper
Producers.
estimate of unreported
amounts and are
Bureau of Mines basis
.
stock
$21,404,000
"E. & M. J. Metal
certain other fields for which
shut down
only being
needed to
calendar month.
Committee of California Oil
28,000
277,000
248,000
sticks.
engineering constructions
general interest to
non-ferrous metals
was
the
passage
of the Trade
Agreements bill by the House.
CRUDE RUNS TO STILLS; PRODUCTION OF GASOLINE; STOCKS OF FINISHED
Hearings
on
the
measure
started
AND UNFINISHED GASOLINE, GAS
OIL AND DISTILLATE FUEL AND
RESIDUAL FUEL OIL, WEEK ENDED MAY 2G, 1945
May 30 before the Senate Finance
SRecommendation of Conservation
not
body
Metals—Restrictions on Brass
Mill Products Eased—Copper Stockpile Rises
ordered for from 2 to 14 days, the entire state was ordered
definite dates during the month being specified; operators
required to shut down as best suits their operating schedules or labor
operate leases, a total equivalent to 6 days shutdown time during the
•shutdowns were
Figures
do
16,144,000
4,300,000
,,
i—
etc.—
—
strip,
Sheet,
Non-Ferrous
allowable as of May 1 calculated on a
and exemptions for the entire month.
With
shutdowns
vIncludes
figures are for week
Extrusions
classified construction groups,
completed.
217,000
Forgings
bridges,
Construction Planning
658,000
281,000
both domestic and
amounts of condensate and natural
net basic
is *the
JThis
the
in
arrangements have been
gas
-{-Oklahoma, Kansas Nebraska
16,959,000
683,000
---—-
Wrought products—
(four days)
7,470,000
27,546,000-
mold—
/Li' Die
8,350
3,681,250
832,800
v'—
as
51,600
•
$35,016,000
6,700,000 5,832,000
—-----
Permanent
projects pro¬
posed for construction in the post-war years total $21,921,120,000, ac¬
cording to reports to "Engineering News-Record" in the period from
January 1, 1943 through May 24, 1945. Plans are under way or com¬
pleted on post-war projects valued at $8,982,699,000, 42.7% of the total
volume proposed, and on $1,329,308,000 worth of projects all financing
+
—
$23,214,000
2,911,000
20,303,000
3,344,000
Identified and recorded
Eastern—
(wet inol. 111.,
Municipal
Post-War
■
Florida
Illinois
73,550
850
+
80,000
78,786
80,000
—
_
Alabama
—
370,050
70,850
283,100
299,800
400,800
360,000
Arkansas
850
—
1,995,500
2,176,150
—
70,250
Louisiana —
Coastal Louisiana __
North
si.ssippl
—,
—
_
Total TexRS
Mi.
91,000
90,000
————
153,900
Texas
—__
(four days)
j
"J
.
Sand
gains over the 1944 week
industrial buildings, and unclassified'-construction.
Increases over last week are in bridges, and industrial buildings.
Subtotals for the week in each class of construction are: waterworks,
$116,000; sewerage, $84,000; bridges, $603,000; industrial buildings,
$4,764,000; commercial building and private mass housing, $300,000;
public buildings, $4,933,000; earthwork and drainage, $173,000; streets
and roads, $3,579,000; and unclassified construction, $6,852,000.
New capital for construction purposes for the week totals $12,930,000. It is made up of $10,851,000 in state and municipal bond
sales, and $2,079,000 in corporate security issues. New construction
financing for the year to date, $511,710,000, is 20% higher than the
$427,497,000 reported for the 22 weeks of 1944.
In
are
—
Panhandle
NorLh
Castings—
24,1945"' May 31,1945
(five days)
Federal
1944
1945
Week
and
State
May 27,
:
274,000
1,000
Nebraska
Ended
Ended
May 26,
':
Construction
Public Construction
Private
Week
4 Weeks
Change
Week
ables
Recommen¬
1
'■
Allow¬
•P. A. W.
'•1
BARRELS)
Construction..
U. S.
May
1,1944
shipments:
Product
municipal
18%.
week, last
Federal construction. State. and
construction, $95,411,000, tops its 22-week 1944 volume by
Civil engineering construction volumes for the 1944
week, and the current week are:
21% "drop in
Secondary
r-
construction, $191,141,000, is ll%:;higher than a
but public construction, $494,400,000, is down 16% as a l*e-
of the
Feb
6,658,000 5,960„000
2,804,000 2,116,000
Primary
Private
year ago,
suit
March
Magnesium production:
"
'
$685,541,r
the period
•
week's construction brings 1945 volume to
the 22 weeks, 9% below the $757,233,000 reported for
1944.
Total
DAILY
the week last year.
The current
magnesium industry in
tics of the
$21,404,000 for the short week
This volume, not including the
Reports received from
and February statis¬
The March
due to the Memorial Ddydholi?^
construction by mllitaiy#^meers
age gross crude oil production for the week ended May 26, 1945,
abroad, American contracts outside the country,
was 4,866,765 barrels, a decrease of only 700 barrels from the preced¬
is 8% lower-than in the corresponding 1944 week, J1% bdow the
ing week.
It was, however, 352,715 barrels per day more than pro¬
previous four-week moving average, and compares with $35,0ib£uu
duced in the corresponding week of last year and exceeded the daily
reported to "Engineering News-Record" for the preceding week. The
average figure recommended by the Petroleum Administration for
report made public on May 31 continued as follows:
,
Private construction for the week is 81% higher tjran in the 1944
War for the month of May, 1945, by 265 barrels.
Daily output for the
^0%
four weeks ended May 26, 1945, averaged 4,855,915 barrels.
Further week, but public construction is down 20% due to
in Federal work. State and municipal 'construction, $4^0,000, is 29 fo
details as reported by the Institute follow:
,
The American
the largest On record.
were
Holiday-Shortened Week-
For
Shipments of magnesium
March.
$21,404,000
Engineering Construction
Oivi!
Production for Week
May 2@, 1945 Decreased Only 700 Bkls.
Ended
f
/,
j^ic
J
products showed:* increase during
BsiSy Average Crude Oil
f
j
CHRONICLE
FINANCIAL
COMMERCIAL &
a
Diamond Jubilee
dinner
at
Roof Garden of the
Pennsylvania the evening
the Penn Top
Hotel
of
August 15.
Out-of-town
exchanges and trade
are
expected to send
gations representing
zations.
Guests and
official dele¬
their
organi¬
will
speakers
of the
Fed¬
and of the
New
include noted officials
eral Government
cotton
associations
magnesium York State and City
Governments.
Volume
Number 4392
161
THE COMMERCIAL &
FINANCIAL CHRONICLE
2547
Revenue
;
Freight Gar Loadings During Week
26, 1945, Increased 13,803 Gars
,
Loading of revenue freight for the week ended May 26, 1945
totaled 882,437 cars, the Association of American Railroads
announced
on May 31.
This was an increase-above the
corresponding week of
; 1944 of 13,616 cars, or
1.6%, and an increase above the same
week in
1943 of 28,654 cars of 3.4%.
Loading of
I
V
;
:
-
freight for the week of May 26 increased 13
803 cars, or 1.6% above the preceding week.
.
;
.
revenue
Miscellaneous freight loading totaled 404,524 cars,
224 cars below the preceding week, "but an increase
-
18,824
cars
above the corresponding week in 1944.
Loading of merchandise less than carload lot freight totaled
108,cars, an increase of 423 cars above the preceding week and an
792
increase of 3,560 cars above the
i
corresponding week in 1944.
Coal loading amounted to 168,255 cars an increase of
19,656 cars
above the preceding Week, but a decrease of 13,079 cars below the
•
corresponding week in 1944.
Grain and
grain products loading totaled 53,564 cars, an increase
preceding week and an increase of 12,439 cars
above the corresponding week in 1944/ In the Western Districts
.alone, grain and grain products loading for the week of May 26
totaled 37,269 cars, an increase of 404 cars above the preceding week
of 375 cars above the
•
and
increase of 11,027
an
above the corresponding week in 1944.
cars
Livestock loading amounted to 13,744 cars, a decrease of 558 cars
below the preceding week and a decrease of 366
responding week in 1944.
.
/
below the
cor-
In
the Western Districts alone loading
of live stock for the week of May 26 totaled 10,546 cars, a
decrease,
of 310 cars below the preceding week, and a decrease of 56 cars
below the corresponding week in 1944.
Forest
.
cars
the
products loading totaled 44,555 cars, an increase of 752
and an increase of 933 cars above
above the preceding week
cars
corresponding week in 1944.
Ore
loading amounted to
the preceding week
below
,,
73,658
and
a
decrease of 7,301 cars
decrease of 9,083 cars below the
cars,
Railroads
Total Revenue
a
Alabama,
.
:
,
•
districts
All
reported increases compared with the correspond¬
354
427
Columbus & Greenville—:
Durham & Southern
I
Georgia
Georgia & Florida
Gulf, Mobile & Ohio
622
2,671
3,142
711
733
1,509
1,514
12,563
10,209
9,693
3,922
4,076
5,055
5,618
432
462
1,364
1,887
1,693
1,608
2,987
3,199
228
333
349
279
957
653
522
1,686
Norfolk Southern—
Piedmont Northern
123
137
99
1,232
1,515
2,201
Tennessee Central
40
107
164
1,235
2,695
2,962
395
343
♦730
721
3,758
4,929
1944
1945
1943
27,112
18.378
26,305
26,692
12,456
12,341
of
the
220
184
170
960
958
of
the
459
265
219
538
640
3,545
3,408
3,332
Under
4,741
4,412
1,107
1,005
1,181
1,709
1,650
390
364
1,280
:J 1,201
430
413
11,514
10,993
10,406
f 11,068
10,574
8,485
9,063
26,573
25,303
23,855
21,501
598
764
686
694
865
140
154
125
1,103
1,258
130'203
123,425
120,710
123.568
120,643
19,233
20.844
19.309
14,451
13,583
3,548
10,903'
10,686
Green Bay & Western
2,482
2,713
2,751
21,866
20,6,89
21,491
3,517
3,494
3,308
25,386
26,499
27,141
290
195
871
767
1,014
685
565
8,577
10,695
11,990
9,102
3,653
412
377
452
104
118
23.437
24,643
8,182
7,699
Weeks
January.
3,001,544
2,910,638
of February.
3,049,697
3,154,116
3,055,725
5
Weeks
of
March—
4,018,627
3,916,037
3,845,547
Denver & Rio Grande Western
Denver & Salt Lake—
4
Weeks
of
April
3,374,438
3,275,846
5
12
863,399
835,538
3,152,879
816,538
Fort Worth & Denver
Illinois Terminal
47
of
3.368
4,188
11,616
nated
10,599
10,452
6,3.91
6,511
622
800
3,005
132,658
133,295
133,056
70,626
70,187
27.570
24,024
23,298
17,357
12,112
838,507
867,182
I
«
May
849,032
Missouri-Illinois
of
May
19
868,634
870,075
843,842
Nevada Northern-
of
May
2G_
882,437
868.821
853,783
North Western Pacific
The
(NUMBER
ENDED
WEEK
MAY
Received from
Freight Loaded
Connections
1945
Eastern District—
1944
1943
1944
1,183
Texas & New Orleans
Texas & Pacific—
Wabash
3,341
2,693
16,998
17,433
4,141
8,552
8,791
161
187
206
2,421
3,360
2,256
1.810
1,381
1,708
8,050
9,127
2,225
2,240
8.905
2,243
6,943
2.559
50,441
10,228
1,420
7,749
12,424
16.071
2,784
2,926
218
321
28
24
52,329
55,048
18,399
19,110
3,671
16,401
15,773
2,143
Wheeling & Lake Erie
4G2
536
8,222
7,558
9,385
4.895
7,933
5,223
9,669
5,511
8,744v
8,420
943
881
1.059
25
360
389
392
216
257
1,340
1.175
3.081
2,484
390
406
352
1,209
1,103
6,173
5,076
13,194
12,840
4,620
4,190
226,272
234,192
6,488
5.370
161.053
165,079
782
187
..
V
7,219
17,549
Quanah Acme & Pacific
St. Louis-San
6,284
4,927
5,304
5,051
16,003
12,020
20,530
20,178
129
Francisco—
St. Louis Southwestern
-
81
58
411
366
10,138
8,745
7,765
9,281
8,966
3,678
3,056
3,040
7,681
7,509
11,707
12,836
12,939
5,771
5,009
5,932
4,7)0
4,854
8,235
7,098
118
112
85
51
103
38
21
25
31
23
77,283
72,583
63,039
75,800
69,982
—
Wichita Falls & Southern
Weatherford M. W. & N. W
»
Total
;
♦Previous
week's figure,
Note—Previous
year's
tlncluded
figures
in
Baltimore
&
Ohio
RR.
revised.
Weekly Statistics of Paperboard Industry
Paperboard Association, Chicago, 111., in relation to activity in the
paperboard industry.
The
members
of
this
Association
represent
83%
of
the
total
industry, and its
program includes a statement each week from each
member of the orders and
production, and also a
the
cates
figures
figure which indi¬
activity of the mill based on the time operated.
These
advanced to equal 100%, so that they represent the total
are
STATISTICAL
Allegheny District—
Baltimore & Ohio
—
Bessemer & Lake Erie
Buffalo Creek & Gauley
Cambria & Indiana
Central R. R. of New Jersey—.
Cornwall
Cumberland & Pennsylvania—
Ligonier Valley
718
760
1,264
1,258
45,601
48.531
43,347
28,829
29,304
5,538
6,589
6,587
2,072
2,119
t
t
Union (Pittsburgh)
Western Maryland
■
REPORTS—ORDERS, PRODUCTION, MILL ACTIVITY
Orders
Period
1945—Week Ended
t
288
1,620
1,664
1,884
15
9
February
7,029
7,210
7,276
19,469
21,378
25
544
674
30
64
180
234
312
7
10
162
38
24
3
February lo
February 17
February 24
March
—
_
-
-
.
_
3
113
170
1,879
1,665
1.121
4,107
4,507
March 10
1,785
1,706
1.817
2,198
2.891
March 17
87,690
89,637
86,228
64.349
69,024
March 24..
15,292
15,916
15.596
27,661
28,126
March 31
19.353
20,680
21,302
7,320
•7,698
April
3,500
4,255
4.461
13,322
12,517
April 14
190,374
199,519
191,815
170,681
178,929
April 28
_
__
_
__
7
1
April 21
-
May
-
5_
May 12
Pocahontas
Norfolk & Western
Virginian
I—
—
Total.
29,560
29,860
30,366
16,520
14,370
21,679
22,201
23.081
8,016
8,112
4,804
4,857
4,986
2,821
2,276
58,433
27.357
24,758
May 19-
May 26
56.918
i
1
■
—
Notes—Unfilled
not
56.043
..
_
(
necessarily
orders
equal
the
of
Unfilled Orders
of
unfilled
orders.
permits.
the
extent
will be
the, supply
orders, first
In
filling
consideration
will
be
given to
carrying War Production
preference ratings.
Owing to the nature of the
merchandise, much of which has
been
used, the Department of
Commerce,
Office
of
Surplus
Property,
is
suggesting
that
agencies make arrangements to
inspect any items in which they
may be interested before placing
those
Board
orders.
is"
Offerings
and
"as
on
are
is"
a
basis,
priced in accordance with the
appraised fair value as deter¬
mined
by the Regional Office.
Owing to the fact that the items
offered during this interim period
are in short supply and the fact
that the Government reserves the
item prior
agencies
may find it difficult to locate the
exact items and quantities which
they desire, It will be helpful if
inquiries from purchasing agencies
right to withdraw
any
to actual sale, purchasing
204,550
148,139
565,064
92
91
149,590
151,307
560,960
93
92
quantities which represent actual
145,541
149,816
553,609
93
92
current
131,989
152,755
529,238
97
93
181,377
150,486
129,948
.
Percent of
Remaining
Tons
Activity
Current Cumulative
558,285
96
93
152,611
580,804
94
93
153,625
557,986
95
93
137,911
158,551
537,005
.99
94
178,483
162,386
549,631
100
94
203,891
146,832
004,720
92
94
159,733
158,933
604,214
97
94
125,708
162,040
564,631
98
95
142,387
158.854
546,311
99
95
223,162
161,764
605,892
97
95
152,208
153,111
602,717
94
95
126,285 '
158,532
565,867
97
95
129,327
157,794
532,257
97
95
the
unfilled
prior week, plus orders received,
orders
at
the
close.
less production, do
Compensation for delinquent
reports, orders made for or filled from stock, and other Items made
ments
to
Tons
'
District—
Chesapeake & Ohio
_
filled
30,
governments
Production
177,711
,
June
local
and
Tons
t
*
ending
supply permits.
12-day period
orders of State
Received
'
—
Long Island
——
Penn-Reading Seashore Lines
Pennsylvania System
——
Reading Co
Total
769
place
-
during
day
"where
industry.
Akron, Canton & Youngstown
orders
the 18-day
period ending June 18th.
State
and local governments may place
their orders
at
any time from
June 1-30. At the end of the 18-
their
We give herewith latest figures received
by us from the National
58
1,201
163,604
101,052
Missouri-Kansas-Texas Lines-.
Missouri Pacific——
3,640
2,369
5,510
6,425
112,522
382
1,232
-
121,651
556
1,762
Pittsburgh & West Virginia
122.023
398
1,798
Pittsburg, Shawmut & North
132.272
5
999
131
Pittsburg & Shawmut
4,468
*
125
11,284
—
5,609
243
12,468
Marquette——
2,273
158
132
437
2,276
641
11,273
1,529
2
2,335
At the close of the
376
6,5.92
2,340
19,694
554
1,268
6,470
1,207
326
13,050
505
2,788
i 8,117
6,'829
from commercial sale.
Federal
agencies
must
287
14,172
466
1,438
276
9,949
18,624
342
15,174
3.325
7,913
278
list
381
5,028
13,080
3,975
the
currently being circulated by the
Regional Offices will be withheld
3,838
225
338
on
0
13,943
1,977
411
7,768
14,006
4,166
shown
0
15,055
3,458
5,318
433
governments.
period June 1-30
as
302
Delaware & Hudson
12,756
local
the
3,715
Delaware, Lackawanna & Western
49,434
•
and
During
Louisiana & Arkansas——.
2,225
10,660
0
32,648
.
merchandise
period,
orders
of
Federal
agencies will be filled to the ex¬
2,253
11,747
52,285
1
30,600
State
tent the available
1,076
*
734
2,804
1,049
Hartford.
New York, Ontario & .Western
New York, Chicago & St. Louis
N. Y., Susquehanna & Western———
Pittsburgh & Lake Erie
127
696
3,197
1,149
Montour—
97
1,096
4,BOO
Central Vermont--
N. Y., N. H. &
2,109
915
6,609
Missouri & Arkansas
New York Central Lines—
755
1,667
814
5,372
41
2,763
533
971
1,462
1,020
2,252
6.676
773
17
1,001
14,866
2,776
2,136
208
63
3,731
2,117
299
2,168
lionongahela—w—-----
1.465
280
13,436
2,491
2,098
Kansas City Southern—
42
—
1,631
2,166
460
1,425
■—
2,165
3,803
30
•——•—
36
768
2,598
1,331
.
649
765
908
7,140
;
5,812
3.429
622
4,474
41
Lehigh & Hudson River—
Lehigh & New England
Lehigh Valley
/Maine Central-
6.890
3,553
531
1,127
period
from
the priority
period for federal agencies, and
the twelve-day period from June
19-30 as thei/ priority period for
as
2,765
1.089
Grand Trunk Western
3,210
eighteen-day
June 1-18 inclusive
867
7,089
———
2,518
Department of Commerce has set
the
3,399
Chicago, Indianapolis & Louisville—
Central Indiana——
Detroit & Toledo Shore Line
2,461
chinery,
Surplus Property Board Regu¬
lation 2 establishes two priority
periods
during
which
eligible
agencies may place orders. The
3,399
Boston & Maine
Brie
731
the
267
Litchfield & Madison
Midland Valley—
.
574
for
surplus
consumer
goods, automotive and constrffction
equipment and farm ma¬
2,279
587
1,848
615
responsible
6,613
1,377
Detroit & Mackinac
6,113
is
of
340
351
Detroit, Toledo & Ironton
12,863
5,593
It
disposal
2,991
1,533
—
13,520
2,489
Board.
6,746
842
6,281
:
12,192
2,707
disposal agencies desig¬
by the Surplus Property
International-Great NorthernKansas, Oklahoma & Gulf
266
—.
10,934
2,740
8
Gulf Coast Lines—
249
/.•
13,315
four
their
1,065
286
—
839
i,.
;
1,290
Ann Arbor.
Bangor & Aroostook
961
Burlington-Rock Island
Total Revenue
1945
3,173
Southwestern District—
26
Total Loads
Railroads
3,372
,
,,;L[i
Total.
AND RECEIVED FROM CONNECTIONS
CARSi
OF
3,279
33,077
Western Pacific
During the period 75 roads showed increases when compared with
corresponding week a year ago.
REVENUE FREIGHT LOADED
72
12.556
'
—.,.//.///.
Utah,
the
3,972
62
12,623
;
Union Pacific System
following table is a summary of the freight carloadings for
railroads and systems for the week ended May 26, 1945.
the separate
4,471
472
17.404
,
Southern Pacific (Pacific),
Toledo, Peoria & Western
16,327,984
16,946,315
16,897,283
2,770
434
18,416
1
—»
Peoria & Pekln Union
..
3,130
364
19,023
1,073
—
now being issued to
agencies by the Depart¬
Regional
Offices.
The
Department of Commerce is one
ment's
6,413
3,816
of
eligible
6,836
175
categories
of
supply in the in¬
the Department of
Office
of
Surplus
Commerce,
Property, are
7.154
2,689
those
short
ventory
2,745
990
of
in
54
994
178
__
Lists
items
2,606
2,366
——
of
Department of Commerce
reporting this further said:
432
281
City
Week
Total
opportunity to purchase
surpluses before other
types of purchasers.
an
available
1,695
-
Week
political subdivisions
instrumentalities thereof are
2,514
—
•
and
and
given
495
3,581
Weeks
Week
Federal
2,101
2,566
System
4
May
under
govern¬
2,707
Central Western District—
4
of
system of priorities is
a
which
427
& Seattle
Fe
Property Board.
regulation, effective
agencies, State and local
ments
2,194
Spokane International
Atch., Top. & Santa
Surplus
this
May 25,
2,333
.
Ishpeming
—
9,193
3,412
3,917
23,218
Minneapolis & St. Louis
Minn., St. Paul & S. S. M.
Spokane, Portland
governments by virtue
issuance of Regulation 2
The
Ft. Dodge, Des Moines &
South—
Great Northern
Northern Pacific
surplus goods has
interest for States
new
local
established
in
_
Colorado & Southern
Week
and
Northwestern District—
Lake Superior &
on
27,450
25,608
Chicago & North Western
Chicago Great Western
Chicago, Milw., St. P. & Pac.
Chicago, St. Paul, Minn. & Omaha_.
Duluth, Missabe & Iron Range——.
Duluth, South Shore & Atlantic
Elgin, Juliet & Eastern———
3.158,700
of
taken
4,329
16,022
418
Other
The Government's Program for
the disposal of
4,252
513
Before
Types of Purchases
28,824
_I
—
Surpluses
1,269
53
1,265
♦431
Winston-Salem Southbound
Total
1,221
54
1,229
-
Richmond, Fred. & Potomac
Seaboard Air Line
Southern System
State and Local
Governments May Purchase
5,750
Mississippi Central
Nashville, Chattanooga & St. L.
Surplus Goods
Federal,
29,441
-
HI
of Govt.
*
221
_
Illinois Central
System
Louisville & NashvilleMacon, Dublin & Savannah
790
11,773
-
except, the Southern;
reported decreases, compared with 1943
Rutland
268
3,707
Alton—
Centralwestern and Southwestern.
Pere
269
1,002
Charleston & Western Carolina—
Clinchfield
Bingham & Garfield
Chicago, Burlington & Quincy—
Chicago & Illinois Midland—.
Chicago, Rock Island & Pacific
Chicago & Eastern Illinois
ing week in 1944 except the Allegheny, Pocahontas and Northwestern.
All
1944
490
the
above
'
1945
887
Total.
amounted to 15,345 cars, an increase of 680 cars
preceding week, and an increase of 388 cars above the
corresponding week in 1944.
1943
12,377
Atlanta, Birmingham & Coast
Atlantic Coast Line
Central of Georgia
Priority for Purchase
Connections
1944
Atl. & W. P.—W. R. R. of Ala
Coke loading
•
Received from
1945
Tennessee & Northern-
•
corresponding week in 1944. •
,;/
Freight Loaded
Southern District—
Florida East Coast
Gainesville Midlands
decrease of
a
of
Total Loads
necessary
adjust-
are
confined
The
to
those
needs.
current
listing
items
and
V
of short-
supply items is part of a prelim¬
inary 60-day program. Ori July
25 and thereafter, in accordance
with the requirements of Surplus
Property
Board
Regulation
2,
Federal agencies and State and
local governments will be given
written
notice
of available prop¬
in
those
categories
for
which they have expressed a need
on
Form SPB 7.
This form will
be distributed to the agencies by
erty,
the
Regional Offices
part of June.
latter
during the
Companies
Items About Banks, Trust
of
President
Trust Co.
&
Bank
which
Cable, Jr., ViceCentral
Hanover
E.
William
Century
"Quarter
the
for many
connected
oldest bank in
Federal Reserve Board
is the
years
Illinois.
business and financial conditions in the
statistics for April and the first half of
of general
based upon
Summary
States,
United
,
announced
50-year service pin
L.
William
Industrial Activity in April Reported by
Springfield Marine Bank, Spring¬
field, 111., died on May 30 at 69
years
of age.
This institution
with which Mr. Lehne has been
The President of the bank,
Club."
of New York,
the occasion for inau¬
was
gurating
Thursday, June 7, 194S
CHRONICLE
& FINANCIAL
THE COMMERCIAL
2S48
DeBost,
May, issued on May 26 by the Board of Governors of the Federal
a
Olin C. Peeler has recently re¬
Reserve Board, said that, output and employment at factories declined
presented
to
Stanley
E. signed his position as Vice-Pres¬ somewhat in April. Department store sales showed a marked decline
Clickener by the bank, 25-year ident and Trust Officer of the
and wholesale commodity prices continued to advance slightly.
service pins will be awarded to First National Bank & Trust Co.
pated income declines resulting
18 other members of the staff who
Industrial Production
of Lexington, Ky., to assume new
ice at the time of his retirement.
from cutbacks in war
have been with the organization executive duties with the Ken¬
production.
Industrial
production,
which
Starting as mail boy, Mr. Cable
for that length of time.
Freight
carloadings
of
tucky Trust Co., Louisville, Ky.
was made Cashier of the bank in
most
had
advanced earlier this year,
Mr. Peeler, who has been in the
manufactured products were main¬
declined in April to the same gen¬
1918, and in 1927 became VicePresident and Comptroller. Since
The New York Agency of the banking field for 16 years, was eral level that prevailed during tained at a high level in April
connected with the the last half of 1944. The Board s and the early part of May and
Standard Bank of South Africa, previously
1930 Mr. Cable has been associ¬
ated with the Corporate Trust De¬
seasonally
adjusted index was were above the same period a
Ltd., announced on June 4 the Guaranty Trust Co. of New York
231% of the 1935-39 average as year ago. Shipments of coal and
partment in its Stock Transfer, receipt of a cablegram from the
The
Havana, Cuba, branch of compared with 235 in the first lumber, however, were in smaller
Reorganization and Agency Divi¬ head office in London, regarding
the Canadian Bank of Commerce
volume, reflecting reductions in
sions.
the
operations of bank for the
quarter.
......
which has been open since 1920
output of these commodities.
year ended March 31, 1945, which
Activity in the machinery and
will
close
on
June
30.
Officials
states:
The New York Trust Company
transportation equipment indus¬
Commodity prices
of
the
bank
who
announced
the
"The Board of Directors have
announced on June 4 today an
tries declined about 3% in April,
resolved
to
recommend
to the closing on June 1 gave no reason
Wholesale prices of farm prod¬
increase in the dividend rate and
reflecting
curtailed
munitions
for the action.
•,
a change in capital funds.
At the shareholders at the general meet¬
production; the largest part of the ucts advanced in April and then
decrease
was
accounted for by showed little change in the first
meeting of the Board of Trustees ing to be held on Aug. 29, next,
E.
L. Hann, Chairman and a
a quarterly dividend of 4%
a
further reduction in operations 3 weeks of May. Maximum prices
($1.00 payment of a final dividend of
Managing
Director
of
Powell
Duf7
shellings per share, together
at shipyards.
As a result of the for coal, steel products, and vari¬
par share) on the capital stock of
with a bonus of 2 shillings per fryn, Ltd., has been appointed a decline in shipbuilding during the
ous other
industrial commodities
the company was declared, pay¬
director
of
Westminster
Bank
able July 2, 1945, to stockholders share, both payable in British cur¬
last
12 months, activity in the have been raised somewhat in re¬
Ltd.,
London,
Eng.
cent
weeks.:
*
*
rency and subject to British in¬
of record at the close of business
transportation equipment indus¬
come
tax, making total distribu¬
on June
tries in April was 10% below a
15, 1945.
.
<
Retail price changes for foods
tion of 14% for the year ended
The dividend for the first quar¬
year ago..
'
:;-r" ■ and other commodities apparently
March
31, 1945; to appropriate
ter of 1945 was 3J/2% ($0.87% per
have
continued
to
be
small in
The Board's report continued:
£50,000
to
writing
down
bank
share). At the same time the
Steel
production was
main¬ April and the early part of May.
premises,
and
£150,000
to
Offi¬
Board of Trustees approved the
tained at the March, level as a
Bank credit
transfer of $5,000,000 from undi¬ cers Pension Fund, carrying for¬
decline in output at open hearth
The contention that government
a • balance
of
£ 198,994.
vided profits to surplus, increas¬ ward
furnaces was offset by a further
During
the
four weeks ended
regulations are "paralyzing pro¬
ing this account to $35,000,000. Bank's investments ?tand in the
rise in steel produced in electric May 16 total
deposit and currency
duction" was made by Charles F.
The capital fund figures are now books at less than market value
furnaces.
Production of nonfer- holdings of businesses and in¬
H. Johnson, President of Botany
as at March 31, last, and all other
capital, $15,000,000; surplus, $35,rous metals, which had increased
dividuals increased by nearly 3
usual
and
necessary
provisions Worsted Mills, of Passaic, N. J., in
000,000; undivided profits, $4,258,somewhat during the first quarter billion dollars. Increases of about
have been made.
The Directors a complaint addressed to Repres.
821.97; total, $54,258,821.97. *
of this year, showed little change 300 million in
currency
and of
have decided to transfer £ 500,000 Gordon Canfield, Republican, of
in April.
Output of stone, clay, over 400 million in reserves re¬
from contingencies to the reserve New Jersey, read to the House by
and
glass
products was main¬ quired to be held against expand¬
Irving LeRoy Bennett, Assistant
fund thereby increasing the re¬ Mr. Canfield on June 4.
tained at the first quarter level,
Secretary of the New York Trust
ing deposits at member banks re¬
Mr.
Canfield
noted
that Mr.
serve fund to
£$3,500,000.
while
lumber
production
con¬ sulted in an increased demand for
Company,' retired on May 31 after
Johnson's
Mills are among
the
complet¬
He went
with the Hanover National Bank
on
May 20, 1895, and was the
senior employee in length of serv¬
retired
May 31 after
on
while
that
service.
ing 50 years of
was
.
Governm't
Regulations
Paralyzing Production
-
46
the
service
continuous
of
years
with
Mr.
company.
Bennett
joined the staff of the Continen¬
tal Trust Company of the City of
York, a predecessor institu¬
Dec. 26, 1898, as a junior
clerk. During his long service he
has
held
various positions and
"was for many years in charge of
on
Vv
Vice-Presi¬
Reuben W. Shelter,
Co., New York,
he
72 years
was
ter
died on June 1;
of age. Mr. Shel¬
the
with
connected
was
Trust
Manufacturers
the
of
dent
meeting of the
Board of Directors of the National
City Bank of New York held May
31 the following were appointed
Carter
W.
Cashiers:
Assistant
Chapman, Jr., William J. Cosgriff,
Mario DiGirolamo, John P. Garry,
Thomas C. Houts, John C. Kelly,
Claire O. Weidman and Harold J.
Kenneth E. Smalley was
has been with the bank since 1930
of New York, announced the
of Robert W. Dowling to
pany
election
Board of the Broad¬
the Advisory
at 44th Street office of the
bank.
Mr. Dowling is President
and Director of the City Invest¬
way
ing
Company,
theatrical in¬
terests
the
in
He is a Director of
R.
area.
Station WOR,
& Co., Inc., Home In¬
H. Macy
surance
Square
Time
Co. and New York Dock
Co., and is a Trustee of the Emi¬
grant
Industrial
Savings Bank,
also of New
Industrial Bank
Plan
N. Y., George W. Stedadvised sale of the stock to
the
Morris
Plan
Bank
The
stock
of
of
New
bank is
the
King¬
banker, who retired in 1937,
died
on
June
Mr.
De
La
at
1
various
at
1907
Assistant
as
and
1937
Treasurer,
of
Trustee
and
Treasurer
the age of 86.
Vargne
between
times
served
the
Kingston Savings Bank, N. Y.
29
passed by the Board of Trustees
in recognition of his long service.
retain
the
of
staff
Union
the
small
bank, with deposits of about $14,000,000, to one of the large sav¬
ings banks of the city, with ap¬
proximately
150,000
depositors,
and
deposits
of
$177,000,000—
institution
more
has
from
then
to
pany
N.
J.
a
years ago.
The bank
located
at
Greeley
with the bank,
a
long
tel
Henry
prices is wanted' and
' fundamental
advocated
he
to,
or
abandonment
of it.
"Elimination
of the
WPB
wool
'freeze'* when the present
expires June 17 and imme¬
reduction
diate
of
the
100%
worsted yarn
'freeze' to 60 to 70%
recommended by the
were
regulations
aim
practical manufactur¬
marketing
of
the
and
de¬
are
things they
accomplished,!' Mr. John¬
to
very
said.
son
the shortage of
despite
production
limit
to
measures
supplies.
available
stretch
to
Pro¬
.
duction of most other nondurable
industry knows how to
own
problems and is
prepared to cope with any de¬
mands placed on it, he said, but
its
'we most decidedly resent being
disorganized through Bureau rul¬
ings.' "
Franklin Trust Co., Paterson,
N.
J., died
of
age.
June 1 at 75 years
helped
He
in
Trust
Franklin
years
on
later
organize the
1916
and
ten
elected President.
was
been
G.
Cordner has
Chairman of the
on Debating
appointed
National
recently
Committee
Public
Speaking of the AIB.
Cordner
is
connected
with
& Trust
Co., Philadelphia, Pa.
William
E.
Lehne,
Assistant
Vice-President and Cashier of the
by
Posthumous Medal
The late
Frank
to
Knox
Secretary of the Navy
Knox
has
the
received
Medal
of
post¬
Merit,
which President Truman present¬
ed to Mrs. Knox in a White House
ceremony
attended by high-rank¬
and naval officials,
ing
military
the
United
Press
stated
from
Washington, May 31.
The medal,'awarded only by the
tion
given
special
to
civilians
action
of
without
Congress.: The
citation read in part:
"Carrying
sponsibilities
on
his
from
in
the month due to work inter¬
accompanying contract
Output
for
the
ruptions
negotiations.
month
of
8%
was
that
below
May
continued
this
at
of
lower
Antharacite
production
higher than
14%
was
in
in
the
preceding month but declined
sharply in May prior to agree¬
ment
on
leum
new
a
19.
has
record
contract on
of crude petro.-
wage
Output
been
levels
maintained
and
iron
ore
with
courage
re¬
and
fortitude undiminished to the last,
he
died
of his
gallantly in the service
country."
dollars
in Reserve Bank
holdings of Government secur¬
ities, mostly bills and certificates,
and in part by a temporary de¬
cline
in
Treasury deposits at the
Reserve
Banks.
Excess
slightly to
rose
around
reserves
billion
a
dollars.
In
the
5
months
between
war
loan
drives, December 20 to May
16, reporting banks in 101 cities
reduced their holdings of shortterm
Government
by
securities
around 2.3 billion dollars in order
to maintain
adequate reserve bal¬
But
during the same period
holdings of these banks were
increased by 1.6 billion dollars.
April
substantial decline earlier
a
at
Loans
for
dealers
and
brokers
to
purchasing
carrying Gov¬
or
ernment
securities, which had de¬
early April to a level
comparable with that reached be¬
clined
fore
in
the
Drive,
the
the
Sixth
Loan
War
substantially during
weeks
immediately
rose
three
preceding the Seventh War Loan
declined
period,
reaching a level about 500 million
dollars lower than that prevailing
Drive.
Commercial loans
during
just
the
before
interdrive
the
Sixth
War
■
■
Drive.
Loan
■■
pro¬
duction has
shown an exception¬
ally large increase this Spring due
to early opening of the navigation
season
Extra Pay for Learning
Arms for Navy
the Great Lakes.
on
Enlisted
Department store sales declined
sharply in April and the Board's
seasonally
adjusted
index
was
181%
of
the
1935-39
compared with
in
the first
in
April
an
average
as
of 211
average
quarter and with 172
1944.
Sales
in
the
first
half
of May were
only slightly
larger than in the corresponding
period a year ago. Owing to un¬
seasonably warm weather and ex¬
pectations
of
shortages
much
Spring shopping,, which
would
usually be done in April and May,
occurred
and
this
March.
stores
manifold
of
was
bond
Bituminous coal production re¬
covered in the latter part of
by member banks.
supplied largely
increase of about 500 mil¬
an
lions
Distribution
President, is the highest decora¬
Lewis
This demand
ances.
change.
goods showed little
May
"The
meet
at
continued
black
carbon
April
structive
Activity
ucts decreased as
rate.
and
record
a
meatpacking
establishments, \yhich had shown
little
change
during
the first
quarter after allowing for sea¬
sonal fluctuations, declined 10%
in April.
Output of rubber prod¬
hension
ing
-to
further
rose
level.
show 'a complete lack of compre¬
of
showed a
March but rayon ship¬
5 % i from
ments
Cotton con¬
decrease of
ago.
year
March and in the first two weeks
Government
humously
din¬
given for him at the Ho¬
Hudson on May 28,
was
in¬
the Corn Exchange National Bank
Street.
ner
Elizabeth
Charles A. Bergen, President of
the
Mr.
association
the
of
stitution.
Square, but in 1910 moved to its
In honor of Mr. Clickener's
un¬
Com¬
of America in Jersey City,
Mr. Kraus will, however,
his position on the Board
Directors
of
present location at Sixth Avenue
40th
of
of
a
.
and
and
May
on
Vice-President
become
the Colonial Life Insurance
seen
than 12 times the amount on
deposit 50
was
grow
Elizabeth, N. J., resigned
In the
Dime.
last half century he
Jr., Vice-President
Central Home Trust Co.,
the
ing 50 years with the Union Dime
Savings Bank, New York City,
and was presented on May 28 with
an embossed scroll—a testimonial
he joined the
at fair
tion
"The
Charles H. De La Vergne,
regula¬
certainty when increased produc¬
also
ston
OPA's
chaos
'a
textile executive.
has a structure
capital and $150,000
$150,000
surplus.
the
price
average
created
has
of
York.
1895,
maximum
tion
said
Johnson
"Mr.
worth $26 par and
of
27,
popular-priced clothing.
order
Stanley E. Clickener, one of the
Auditors of the bank, is celebrat¬
May
,,
man
Jacob Kraus,
On
sumption
urged in the letter
the abolition of the War Produc¬
tion
Board
order
(M-388)
de¬
yarn
York.
declined
slightly in April and was at the
of
funds
reserve
and man¬
food products
ufactured
ing to say:
"Mr. Johnson
decline.
to
Production of textiles
level
of Albany,
which has impor¬
tant real estate and
letter to the stockholders of
a
Morris
tinued
une," which also had the follow¬
amendments
In
of
present Assistant Secretary.
at
the
Percy H. Johnston, Chairman
Mr. Smalley, who
Buffalo, N. Y;
Schondelmeier.
the Chemical Bank & Trust Com¬
recent¬
appointed head of the mort¬
gage loan department of the Man¬
ufacturers and Traders Trust Co.,
ly
as
the
in
on
signed to channel the limited ci¬
vilian
supplies of textiles into
regular
a
June 4, as given
New York "Herald Trib¬
Washington
for 47 years.
At
largest in the nation, it was noted
Associated Press advices from
in
,v-..v
Brooklyn branch of the company
Department.
the Transfer
closed
be
Aug. 8 to 21, both days in¬
clusive."
New
tion,
will
books
Transfer
from
in
year
In
February
mid-April
men
Personnel
the
in
Navy
Guard
achieve
who
President Truman has ordered, an
Associated
Press
Washington
stated
report
from
May 26,
on
The extra
compensation, ranging
a month, the Navy
explained, is intended as incentive
from $1
to
the
to $5
enlisted
proficiency
some
not
arms
his
involve
For
to achieve
handling of
his rating does
man
the
when
require
though
many
in
such proficiency, al¬
battle station might
such
handling.
enlisted man
is not
operate
fiqder, but under the
example,
an
closed
immediately
with the rating of yeoman
following the death
of President
required to know how to
were
Roosevelt.
cities
in
Also,
in
^particular
a
gun-range
new
part of the recent decrease
sales
associated
appears
with
to
actual
have
or
been
antici¬
and
profi¬
ciency in the use of arms when
their rating does not require it
are to receive extra compensation,
Coast
as
order, if
an
a
yeoman
operator
of
a
qualifies
gun-range
finder he would be entitled to ex¬
tra compensation.
@FedFRASER