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Final ^Edition
ESTABLISHED
In 2 Sections—Section *2
0 VER H00- YEARS
Vlfat)fc'-nv
f*r»u
Reg. U. S. Pat. Office
Volume 163
New York,
Number 4472
Price 6Q Cents
N. Y., Thursday, March 14; 1946
a
Copy
The Financial Situation
W.
Lewis
Douglas, President of
No Samuel Welleriiof the Bowles-Wyatt-et al entourage
Y., Says It Cost
Policy Holders a Quarter Billion is likely to have occasion to give voice to the Pickwickian
wage-price policy unfortunately affords no word of reassurance
Most of these Wash¬
Dividends and In¬ cry: "Why warn't there an alleybei."
whatever in the area of profits.
In the first place, Mr. Bowies' ques- Annually in
tion-and-answer lesson clearly reaffirms OPA's intention of fixing creases Premiums Charged Policy ington figures have long ago learned to be ready with their
By A. WILFRED MAY
Chester Bowles' week-end
"blue-printing"
''I
of bulge-in-the-line
prices on an industry-wide, instead of an individual company, basis.
The result will be that whereas large and strong enterprises may be
able—at least temporarily—to withstand 15-20% wage increases, and
industrial giants like General
Electric
can
Mutual Life of N.
dissipate savings to meet
profitless price ceilings, the burden will prove devastating to the seg¬
of the relatively weak and inefficient companies.
Thus cor¬
ment
porate Big-ness is being unwittingly furthered.
Holders.
In the
103rd Annual Report of
the Mutual Life Insurance Co. of
New York, Lewis W. Douglas, its
President, calls attention of pol¬
icyholders
to
adverse
the
of setting ceiling prices to yield profits
equaling those in the 1936-'39 period is both inequitable, and consti¬
tutes a harbinger of general weakness in corporate financial stability.
This technique compensates the property-owners in amounts (as a
maximum) which they received when the operating volume of many
The
professed
intent
industries, like steel, were but half that existing now.
At any
Extraordinar¬
phase' of a life
j|
insurance
i
of
company's
cause
every
:
.
j
f
op-
erations is aff ected
||jj|M W' MP
:Mpj^:
or'jMm&fyt
ad-
versely
indicated by Treasury Department as well as National City Bank
compilations, were considerably lower than in either the years fol¬
lowing or during the "normal" 1926-1929 base.
That 1936-1939 did
not quite constitute a halcyon period is further evidenced by the
fact that 60% of American business then operated in the red. " Fur¬
Wi
thermore profits are to be calculated before,
Douglas point-
as
as
the
17 %
to
even
not after, taxes—and,
corporate income tax has since the base period risen from
38%, the earnings actually available for distribution will be
imposing a relatively low ceil¬
earnings in good times, constitutes a "heads-you-win-tails-Ilose" technique, as would a permanent high excess profits tax.
on
Recent stock price
movements strikingly reflect the greatly in¬
creasing market illiquiclity, induced by the elimination of creditextension on stocks, and by the tax statutes. The long-term increase
(Continued on page 1403)
.
interest
ed
a
or
sfes/*" M
r.
Lewis W- Douglas
"that
out,
rates
introduced
is
as
a
prologue to this report.
The at¬
tention
of
policyholders of the
company has been called to this
problem each year since 1940."
"The interest rate, under condi¬
tions as they prevail today," he
continues, "is one of the most sig¬
nificant, if not the most signifi¬
cant, factor in the operations of a
life
to
insurance
of
greatly enlarging the production of sundry items wanted
a great many and to be found in very limited quantities,
if at all, in the markets of the country.
Of course, this is
a rather old story often heard during the past year-—each
time to remedy a situation which the last such announce¬
ment was to have brought to an end without delay, but
the public is apparently expected still to take; some-stock
by
it, particularly when as much is made of it in official
as was the case during most of last week, for example.
circles
Wonders Never Cease
other than Mr.
microphone at the end of the
But—will wonders never cease?—none
Bowles himself comes to the
week to inform the
control, price
adjusted to make certain
public that, after all, price
ceilings (which have just been
(Continued on page 1400)
because
it, the amount of dividends and
company,
the cost of insurance are irrevoca¬
bly tied.
by changing
their investment policy, tempor¬
arily aggravate or mitigate the
critical
nature
of the problem
created by falling interest rates.
But no modification of policy can
permanently provide an escape
from the grave consequences aris(Continued on page 1402)
"Companies
Editorial
Page
Financial
Situation
1397
Regular Featureo
From
Washington Ahead of the
1397
News
1397
Observations
Moody's Bond Prices and Yields.... 1408
Items About Banks
and Trust Cos.. 1412
Trading on New York Exchanges... 1409
1409
NYSE Odd-Lot Trading
State of
General
Trade
Review
1399
Commodity Prices, Domestic Index. 1410
Weekly Carloadings
1411
Weekly Engineering Construction. .1409
Paperboard Industry Statistics
1411
Weekly Lumber Movement
1411
Fertilizer Association Price Index... 1408
Weekly Steel Review
1409
Weekly Coal and Coke Output
1410
Moody's Daily Commodity Index..,. 1408
Weekly Crude Oil Production
1408
Weekly Electric Output
1407
Non-Ferrous Metals Market
.1410
NYSE Share Values art; Jan. 31
*1331
Consumer
Credit Outstanding in
November
*1331
NYSE Bond Values at Dec. 31
Hotel Sales in November.
.*1331
*1331
Federal Debt Limitation at Nov. 30,
1945
*1332
Private Building in November
Cottonseed Receipts to Dec. 31
*1332
*1332
Commercial Paper
Jan. 31
*1332
Pearl
*
Harbor
Issues Statements on
may,
GENERAL CONTENTS
-
are.
has been fed
in
discussion of
interest
further reduced.
Looked at broadly, the policy of
ing
beneficially '•
rate
rate they are now appearing, and strange they
For some little time the restless consumer
soothing syrup in the form of announcements
of price adjustments in the textile and certain other indus¬
tries which, we were and are assured, will have the effect
certainly
ily high reconversion activity now may enable business to withstand
inflated costs, but a squeeze must inevitably follow when volume
declines.
The steel business, whose break-even point is now 75%
capacity, typifies the largely inflexible rise in costs which has
permeated all industry.
In the years 1936-1939, which has been
chosen as the "base period," the earnings of American corporations,
"explanations," their "cross suits" as it were, and their
a means lot "saving face" and, inci¬
dentally, their tenure of office, when theirs assurances to
the public, to say nothing of their own confident expecta¬
tions, prove without solid foundation. It was, therefore,
fully to be expected that strange reasons for the endless
and apparently unending shortages of the day would be
forthcoming in due time.
;
^
"counter offensives" as
Outstanding at
Hearings Ended.....*1333
These items appeared in our issue
March 11, on pages indicated.
of
Wage-Price Policy
THE COMMERCIAL & FINANCIAL CHRONICLE
1398
House Passes Amended
Who Killed Cock Robin?
"For two
/
and for
of
contracts
war
handled
were
more
effectively than most people believed possible.
Unemployment never appeared in the predicted
volume.
There
reason
was
to think that the auto¬
much amended form.
mobile
industry and the consumer durable goods
industries in general would be under strong momen¬
tum by the turn of the year and moving toward full
production by Spring.
...
"Meanwhile, however, the conditions which have
led both to curtailment of production and to in¬
creases in costs were developing.
Mistaken fears
of deflation and depression led the Government to
support demands for large wage increases and other
measures
to
'maintain purchasing power.'
This
and
concretely
more
even
ure
visions
a
blighting force
.
of
material
which
Harry F. Byrd
Housing
s
h
me
that the fact that the
(N. Y.), Whittington (Miss.), and
Woodruff (Mich.)
the
The
statement
read:
"The
fol¬
year
Under such circumstances
should not spend
men
and
materials
a penny
beyond
for
our
absolute needs.
(D-W.
be balanced.
.
."We
This
cannot
money we
can
afford
overdue
pr war
ue
for
,
to
do not have.
not afford to continue
cies
be done.
spend
We can¬
war
agen¬
demobilization,
functions of doubtful val¬
in civil
structure
agencies. The Federal
needs
rebuilding for
the
Senate
Senator Kil-
Va.), in
the
He
our
House
statement
a
action
accused
the
homeless
budget contains
$11.8 billion of commitments and
veterans
families obtain decent
On
said
March
that
as
a
the
Republi¬
fight
7
and
their
gigantic
power
tive estimates without detail.
Senator
Barkley
wiil
the Administration
to
ing
restore
this
the
Washington
$600,000,000
in
Associated
accounts
that day
on
He talked with reporters at the
White House after
Congressional
leaders had conferred with Presi¬
dent Truman,
The House rejected
.
subsidies
and
on
building materials
key feature of the
another
President's
ceiling prices
housing program
on old dwellings.
The Government
was
A
find the cuts needed
the
$23.3 billion total.
"This year has been called The
of
decision.'
For
the
of
in
up
bitter fight to
a
For
these
forces
of
long realized that bothreligion and democracy are
founded
basic
one
on
dividual
and
man
(Continued
principle,Dic-
woman.
1403)
on page
fore '-tm-Ast and rentals, amountec
to
$70,848,185
first
with
compared
follows:
the
For
12
months
ended
Jan.
1946,
the rate of return on
property
investment
averaged
3.04%
compared with a rate of
31,
return of 3.97%
ended
Jan.
railway
operating
the
represent
amount
income,
left
after
the payment of operating expenses
and taxes, but before interest rent¬
fixed
other
and
of
value
road
and
by the books of the
including
ways
are
investment is the
equipment as
Property
paid.
shown
charges
materials,
rail¬
sup¬
Total
operating
revenues
in
January, 1946, amounted to $640,871,880 compared
171
the
in
same
with $750,911,-
month of
decrease of 14.7%.
in
penses
that
1945, a
Operating ex¬
January,
amounted
to
Thirty-nine
in
earn
January,
and
in
13
Class
I
railroads
interest and rentals
1946,
of
which
Eastern
Southern
the
in the
19
District,
Region,
Western District.
Eastern
same
of budget defi¬
cits, the American people have s
chance
to
years
make
clean-cut
a
de¬
-
month of
Those
same
and citizens who believe in
States
Onlv
budget
move
on
if
a
that
to
to
a
support
put
sound
the
District
1945.
roads
fiscal
dor°
Region
railroads in
the
Region in January,
estimated
an
interest
and
net
South¬
1946 had
income,
rentals
of
with $9,573,072
period of 1945.
same
Those
after
$6,000,000
compared
in
the
roads in January
railway operating in¬
come, before interest and rentals,
of $11,046,640 compared with $13,924,312 in the same period of 1945.
Operating revenues of the Class
had
same
net
a
railroads
the
in
Southern
Re¬
gion in January totaled $89,876,835, a decrease of 20.7% compared'
with
the
same
period of 1945,
operating expenses totaled
$67,829,945, a decrease of 6.1%
while
below 1945.
District
Western
•
District in January,
January,
1946, had
an
estimated net income, after inter¬
est
and
rentals,
$15,000,000
of
compared with $21,150,518 in the
period of 1945.
same
Those
had
in
roads
same
net
a
January
railway operating in¬
come, before interest and rentals,
of $35,666,933 compared with
$35,-
711.723
the
in
same
period
of
1945.
Operating
revenues
of the Class
I railroads in the Western District
in
in
1946, had a net railway operating
income, before interest and rent¬
als of $24,134,612 compared with
$26,405,418 in the same period in
January,
032,305,
pared
a
1946,
totaled
$270,-
decrease of 16.6%
with
the
same
com¬
period
in
1945, and operating expenses to¬
taled
7.9%
bal¬
now,
I
Class I railroads in the Western
the
in
were
Barkley made it clear
Administration forces would
16
Southern
Class
of 7.5%.
crease
decrease of 7.7% below
a
1945.
$490,059,355 compared with $530,045,245 in January, 1945, or a de¬
Class I railroads in the Eastern
attempt to revive all features of
the original
housing bill asked by District in January, 1946, had an
Mr. Truman, but he said the ma¬ estimated net
incorqe, after inter¬
jor effort would be behind the est and rentals, of $10,000,000
subsidy payments.
compared with $8,324,598 in the
in
317.688,
I
plies, and cash.
in the Eastern District
January totaled $280,962,740, a.
10.4% compared with
the same period of 1945, while
operating expenses totaled $226,decrease of
ern
The earnings reported above as
net
I railroads
of the Class
revenues
in
for the 12 months
31, 1945.
—
—
Operating
a
net railway operating income of
$76,041,453 in January, 1945. The
Association further
reported as
seven
so
total of 227,806 miles, had
a
and
Senator
anced
year
lined
1946, rep¬
an estimated net income, after
rentals, of $31,000,000 compared with $39,048,188 in
January, 1945, according to reports filed by the carriers with the
Bureau of Railway Economics of the Association of American Rail¬
roads and made public March 8.
Net railway operating income, be¬
interest
failed to
busy also
cial and industrial construction
that more homes can be built.
every
items in that
a
have
The Class I railroads of the United States in January,
resenting
—
rushing final touches on a new
order designed to slash commer¬
determined Congress, with citizen
among
through
world
Earnings $ 110,040,291
Lower in January—Net Off Over $8,000,000
Press
added:
1
backing,
budget balancing
parts of the
the, worth and dignity of the in¬
$23.3 billion of cision on the
spending policy of
other spending of which'$17 bil¬
their Federal Government.
lion appears- now only as tenta¬
"We urge Members of Congress
1945.
for
democracy.
a
come
Glass IRR. Gross
als
housing."
and
can
just
which forces of evil in
have
address follows:
econ¬
subsidies when housing
legislation
is considered by the Senate.
Not¬
,
"The proposed
guarantees
subsidy fight
in
and
time
*
lowing Members of Congress be¬
lieve that the Federal budget, for
the period beginning July 1, 1946,
and ending June 30, 1947, should
evil
atomic energy.
out,
"short-sighted Demo¬
crats" of having "seen fit to vote
down a proposal
intended, to help
production up to the level of de¬
We
renewed
indicated when
omy."
Federal
next
uses
re¬
pointed
"serious blow to the nation's
will be taken away from industry,
will lengthen its struggle to bring
mand.
be
assailed
buys
Government
Wyatt's
Press
As&ociatect
would
'
White, Jr., (Maine); and Repre¬
sentatives Cox (Ga.), Doughton
N. C.), Halleck (Ind.), Knutson
(Minn.), Martin (Mass.), Taber
Expediter
action to the bill as amended was
that it would not achieve the goal
of 2,700,000 new homes.
However,
eral
1
a
build¬
Expiration date, of the housing
Wallace H.
W
channeling of
bill's authority would be June 30,
1947.
now, and from the
Government
for
in
—
awakening was* essential
match
have
democracy.
President Truman
that
spiritual
together in
banish from the face of the earth
both thesd* ideals
religion and
The text of President Truman's
those powers.
of*v
h.),
newly
on
been
cr
world,
and
to
Creates an Office of Housing
Expediter, giving the-expediter all
the wartime authority of the Pres¬
ident regardless of what happens
to
the original
laws conferring
(Mass.) Wher¬
ry (Neb.) and
c
include, as
"Wall Street
We
work
at
the
Housing Administration.
unnecessarily
increases the civilian shortage of
such items.
Every hour of unneeded manpower which the Fed¬
i
does
measure
r
a
bound
vidual freedom in
greed
were
in
h
s
in
all
are
of religion
people who*
different ways.
are
single unity—the unity of indi-'
a
of
forces
1 f'
s e
Adds $1 billion to the mortgage
insurance capacity of the Federal
ground
from
both up. We cannot afford, nor do we
need at this time, in view of the
Houses
was
released
i n widespread opportunities for em¬
Washingt o n, ployment, such things as the big¬
D.
gest public works program in our
C.,
on
March 4. Sub¬ history or a general Government
scribers to the expenditure almost twice prewar
statement in¬ 1939. Every dollar we spend now
cluded: Sen¬ must be justified by overwhelm¬
ator
Bridges ing proof of its need.
"Every deficit dollar which the
(N. H.), Byrd
(Va,),
Taft- Federal Government spends adds
to- inflationary pressure.
Every
(Ohio),
Tydings
(Md.), foot Of lumber, niece of pipe, vard
(M
we
or
which
spirit
We
God
worship
of
couise
the
sect
one
as
ing materials into low cost homes
balanced budget for the Federal Gov¬
to by a bi-partisan group of
Vandenb erg
exist¬
on
rather
whole.
But
particular
one
but
which repre¬
one
as
me,
no
creed,
a
confer¬
for veterans.
1947 and subscribed
-
sents
and
Calls
Members of Congress Support
peace
invited
of
this
consider
to
represents
the
Council
to which you have so kindly;
as
built homes.
Senator Byrd in Issuing
Congress
like
various
by the
Journal," are:
Puts price
ceilings
the Movement.
Members
I
ence,
Council of the
"the
the Federal
of Churches of Christ:
Churches
President
as
__
Friends of
i
that
cans
a
stop¬
decade
passed
Senators Ask for Balanced Budget
advocating
which
described
enumerated
Who could doubt its nature?
'
had
Winston
<s>
of the Federal
$600,000,000 sub¬
a
where he introduced
Mo.,
"The Sinews of Peace," President Harry S.
heart" of his program, but Christ in
Associated Press reported j America. The
Washington, all mention of President, in
gore
in fiscal
Fulton,
on
his remarks,
pointed
out
was
A statement
Truman
The provisions which the House-
permit him to produce at capacity, or an
agency which, however excellent its motives, would
perpetuate cost-price conditions making production
unattractive and unprofitable and thus shutting it
off?'—The National City Bank of New York.
ernment
from
placing of price ceilings
ing homes.
which will
Statement Urging
return
tion also regarded as important to
the success of the program the
primary responsibility for the inflationary trend to
be found?
Second, who can contribute more to
economic, welfare under these conditions — the
manufacturer who seeks cost-price relationships
Members Join With
fight for
in its final form. The Administra¬
nouncing producers for seeking and the OPA for
permitting a bulge in the price line might well
ask
themselves
two
questions. Where is the
15
his
Churchill in his address
subsidies
Government subsidies to spur con¬
struction was absent from the bill
.
And the answer?
On
meas¬
the
from
going on. It is seen that in some industries, includ¬
ing steel, cotton goods and meat packing, overall
price increases have had to be authorized. Evi¬
dently increases will be necessary in other cases.
As the issue comes to a head, those who are de¬
r
turbing Peace at Home and Abroad and That Greedy Interests Are
Opposed to Price Controls. Urges Aid in Housing Program and
Says U. S. Will Support UNO Charter.
poed of pro¬
str
construction
provision
very
as
prospect.
Production has been stopped in many
plants and wage costs have been increased in vir¬
tually all.
"The practical test of the wage increases is now
.
vain
Truman
the bright reconversion
on
Energy Must Be Matched by Spiritual Strength if World Is to
Says Forces of Selfishness and Greed Are at Work Dis¬
Survive.
price
sidy
government departments 'demonstrating' that large
wage increases could be paid without advancing
prices. Union demands have been strengthened,
disturbances have followed, and they have fallen
with
for
The
President Tells Council of Churches the Gigantic Power of Atomic
off
at
ceilings on
existing ped
housing, in spite of repeated ef¬ Columbus,
forts of Administration supporters Ohio, and de¬
livered an ad¬
to retain the original recommen¬
dress to a spe¬
dations for the legislation.
The Administration had put up cial meeting
memoranda from
by
passed is
as
and
officials
support was expressed publicly by high
Spiritual Revival
The Patman Emergency Hous¬
ing Bill, which, as introduced, was
designed to carry out the Admin¬
istration's program to build 2,700,000 homes for veterans during the
next two
years
under the plan
projected by Housing Expediter
Wilson Wyatt, was finally passed
by the House, 357 to 24, on Mar. 7,
after a week of dehate, but in a
industries,
early volume production of needed civilian
goods, was bright beyond ail expectations. The
problems of plant clearance and changeover and of
pect for rapid reconversion of the war
.
Truman Pleads fo*
three months after V-J day the pros¬
or
settlement
Thursday, March 14, 1946
$195,911,722,
below
CLASS I RAILROADS—UNITED
Month of January—
a
decrease
of
1945.
STATES
1946
1945
United
Total
operating
revenues
8640,871,830
8750.911,171
basis.
Total
operating
expenses
490,059,355
530,045,245
^an
Operating
o»jr
country successfully discharge its
obligations."
ratio—per
cent
Taxes
•let
railway, operating incQir.o (before, charges*
Net income, after "charges
Estimated*
,
76.47
70.59*
69,217,642
130.462,486
70,848,185
76,041,453
31,000,000
" 39,048,188*
.Volume 163
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4472
1399
trade
Pres. Truman
Urges Loan to Britain—
Senate Couiiniltee Opens Hearings
The Administration has thrown its weight behind the proposal to
a loan of $3,750,000,000 to Great
Britain, with President Tru¬
extend
A
gradual rise characterized the trend of overall industrial pro¬
new orders were accepted cautiously in view
duction last week and
of the limited
supplies of
raw
materials, strikes and the possibility of
adjustments in price ceilings presenting many producers with future
delivery problems.
A 4% decline in unemployment compensation
claims was noted for the week ending Feb. 23 over that of the pre¬
fcv
ceding period.
Weighing the effects of strikes
the nation's economy it was
apparent the past week that pur¬
chasing power, that component of
on
trade
essential to the economic
so
well-being
of
our
country,
is
showing some signs of diminish¬
ing. According to current reports,
the estimated financial loss to la¬
bor and
amounts
now
to
approximately $1,000,000,000.
In arriving at this sizeable sum,
authoritative
set the
sources
loss
industry in unfilled orders at
in
recruits
bor
obtaining new la¬
evaporated in
have
and there is
areas
some
trend towards
which
will
rate of
a
definite
a
operations
beyond the recent'
go
highs of 83%, according to The
Iron Age, national metal-working
in its survey of the steel
paper,
trade.
<
*
Casting
industry in the General
Motors strike alone
to
Difficulties
outlook
and
the
the
over
week of more
production was
possibility of a na¬
past
steel
distinct
tionwide
April
shadow
a
the
more
soft
2.
shutdown
coal
The
on
$600,000,000; to labor in unearned
wages, $150,000,000; to car mer¬
mands which John L. Lewis will
chandisers
so
in
car
new
sales
com¬
missions, $150,000,000; cost of idle
plant maintenance, salaries to en¬
gineers whose work has been lim¬
ited
strike, lost commis¬
sions
on
used-cars
sales,
etc.,
$100,000,000.
by the
The General Motors Corp. wage
make
upon the coal industry are
packed with dynamite, states
the magazine, that little headway
is expected to be made in the 10
days between the meeting of the
two groups and the deadline set
for the strike.
explosive item on Mr.
Lewis' list will be the one calling
The most
the
dispute is also affecting the out¬
for
put of other car manufacturers
dependent upon it for parts and
organizing of supervisors
the Ignited Mine
Workers
into
This touchy factor was
Union.
equipment, and thus, the earnings
of their workers
and the sales
the
commissions of their retailers are
of coal
In terms of units
lost, the automotive industry ex¬
other
suffering by it.
pected to produce a total of more
1,250,000 vehicles up to the
present time, but have instead at¬
tained
a
figure around 200,000
than
units, principally for salesroom
display purposes both at home and
abroad. The resultant losses, these
of
base
the
at
shutdowns
coal
last October when millions of
tops
lost to the steel and
were
industries.
It is
a
foregone
conclusion that the coal
will
in
united
a
"NO"
blunt
operators
front
give a
to
any
for
request
organizing the supervisory forces
the
in
will
be made
before
even
stand
This
mines.
coal
unmistakably clear
negotiations between
the coal operators
union and
the
begin, The Iron Age adds.
With reports indicating that the
and costliest work stoppages in UMW will attempt to keep the
automotive-industry history.
The present high take-home pay with
above loss in purchasing power a normal 35-hour week, it is ob¬
when applied to industry
as a vious that the steel industry will
whole takes on greater signifi¬ face added costs when the contro¬
cance.
versy
is finally settled.
Aside
from
this factor a coal strike,
The large untapped purchasing
state, are included in the
overall
estimate
of the longest
sources
power and pent-up demand heard
spoken of so often in the past may
well have to undergo some revi¬
the light of the nation¬
epidemic of industrial wage
disputes that the nation has fallen
sion
in
wide
aftermath of the war.
heir to
as an
These
strikes
time
bonds
and
savings
channeled
causing
are
into
trade
to
war¬
to
be
buy the
necessities of life and will,
given
time, create a substan¬
tial dent in the country's ability
which "is
lasted
according to
However,
buy.
Bulletin of
the LaSalle Extension University
March
the
of
Business
Chicago, "consumer buying is
likely to remain high because in¬
comes are large in spite of reduc¬
tions in the earnings of strikers.
Savings are also at a peak and,
although they are not well dis¬
tributed among all income groups,
will
provide considerable
purchasing power as long as peo¬
ple remain in the buying mood.
A change
in public psychology
would quickly affect retail sales,
.-although income payments to in¬
they
have
dividuals
to
very
close
keeping pace with the rise in
consumer
spending."
There
in
come
will
the
future
be
a
for
large demand
goods now in
of production and con¬
templated, since many necessary
articles familiar to American life
process
have long
scene
been missing from the
long industry will take to
satiate this demand before a re¬
question,
resourcefulness be¬
cession sets in is open to
but American
ing what it is
will meet the chal¬
lenge.
Steel
—
In
the
short
space of three weeks recovery in
steel output has gone far beyond
previous estimates made by steel
officials, placing the steel ingot
rate the past week at only a few
points from the
pre-strike level.
business
for
America,
for
.
.
the
for
.
industries
workers."
our
farmers,
our
of
.
.
.
The President
said:
"Before
the
because
of lack of
fuel would cut sharply
into steel-
making.
The past
week the steel industry
the
digesting
busy
was
various
price changes which were assigned
March
on
1
to
of the steel
most
price lists.
Price increases range from $2 to
$3 on semifinished steels to as
products
on
the steel
high as $12 a ton on some spe¬
cialty items. The majority of the
increases, however, were between
$4.50 and $6 a ton and the total
average worked out about 8.2%
for all products.
On
nonintegrated steel
producers
were
afforded relief
through a broader spread between
paper
however, were of the
opinion that since the price in¬
sources,
crease
so
to
semifinished
on
steel
was
low it
might be more difficult
obtain.
These
sources
claim
that
for
be
would
there
tive
little incen¬
producing large quanti¬
ties of semifinished steel.
On the
steel
times
other hand
during
companies
need
many
outlet
an
large
normal
for
their
semifinished steel supplies and as
a
trade rela¬
smaller noninte¬
result built up good
tions
with
the
Over the long
pull it may be expected that these
relationships will be re-establish¬
ed, but it does appear that semi¬
finished steel will be a tight item
in the
The
near
future.
American
(Continued
Iron
for
American
They bought our surplus
cotton
and wheat,
tobacco and
fruits;
and
our
manufactured
products in huge quantities.
"During the war Britain, be¬
cause
of
lack
of
dollars, was
goods.
on page
Steel
1407)
didn't pay her World War I debt
"provides
default
a
Associated
the
From
basis" for expecting
proposed hew loan.
no
on
Press
McFarland
"Senator
we
that
told by Mr. Vinson
was
the
(Dem.),
War
World
of
debt
I
Britain to the United States, now
still
$6,491,614,782 by the
charges, is
to
grown
piling
of interest
up
the books.
on
McFarland
"Mr.
said
he
was
to the United States by
the Empire and countries tied to
ish
the pound sterling.
war
Now that the
is over, we want to do
with
ness
wants
Britain,
to
this
With
able
barriers
with
Britain
loan
has
and
us.
will
be
to
abolish
our
mutual
agreed
block
that
busi¬
Britain
and
business
do
trade."
March
On
to
proposal
Britain
5
hearings
the
on
the
extend
loan
to
started by the Sen¬
were
1947, Secretary Vinson said there
is ample market demand for new
the Brit¬
during the war on a 99-year
lease arrangement be transferred
bank investors
"He
land
statement under
the
made
the Treasury Fred M.
Senator McFar¬
of the Senate Banking Com¬
questioning
"I
by
it is a contract under
mally
opened
the
tion's drive before the Committee which we get benefits greatly in
for Congressional approval of tfye excess of the money in volved,'.'
He had previ¬
loan on the keynote that world Mr. Vinson said.
trade war might result if the loan ously told of Britain's plans to
were
denied.
trade ' restrictions
in the
"Every section of drop
country, every sector of our
in
depends
part
on
world
trade," Mr. Vinson de¬
clared, acording to the Associated
Press.
"The financial agreement
of England
other countries to our
will open the markets
and
many
means
more
exports
jobs for our workers, more prof¬
its for business, and a higher in¬
come for all our people."
On the other hand, Secretary
that
Britain
if
Vinson
asserted
fails
get the loan she will be
to
sheer necessity to
economic bloc of na¬
tions accounting for possibly half
or
more
of total world imports
and exports.
The United States,
he
continued,
would
then
be
compelled
line
forced
by
an
up
form
to
a
bloc
counter
and the result would be economic
warfare which this country
ably
prob¬
would win but only at ex¬
cost.
treme
"World
trade
would
be
de¬
say
world market.
The
to
Britain
Ohio)
re¬
permitting
Taft
Senator
ferred
(R.
section
a
interest
waive
to
pay¬
ments when there is a "severe de¬
pression" in world trade. He said
waiving clauses appeared to be
feeble.
the
and
expected
be paid in full
principal to
would "look with grave
any
Britain
believed
he
that
he
said
Vinson
Mr.
care"
on
plea of waiving interest pay¬
ments.
On March 6 Assistant Secretary
added
his voice to the Administration's
of State William L. Clayton
in favor of the loan.
warned, according to
a
dispatch from Washington to
the "Wall
Street Journal," that
the economic warfare which Sec¬
retary Vinson had
predicted if
the Bill were not passed would
lead
to
friction
between
the
United States and Britain on the
arguments
Mr. Clayton
security council of the United Na¬
tions and endanger the success of
fer," Mr. Vinson said.
Taft whose
the loan has
been
and
critical,
asked Mr. Clayton whether Brit¬
told
Mr.
Vinson, according to the
"Journal
of
Robert A.
Senator
Utah)
(D.
Commerce"
on
Mar.
regarding
inquisitive
attitude
that she
loan must be made to Britain on would, in addition to removing
controls,
permit her
the
basis
of
British need,
but exchange
quite another if it is a "question postwar trading to be carried on
of Britain's being so powerful she by private individuals instead of
can run the whole world."
If the by the Government,
The "Wall
5,
that
it
latter is
was
one
thing
if
the
correct, Senator Murdock
argued, this country ought not to
reenforce
Britain's
position
by
providing her the loan.
What
happens, he asked, if Britain uses
the $3,750,000,000 and comes back
later
threatening
to
withdraw
into
closed bloc?
a
The
"Journal
ain
any
gave
Commerce"
assurance
Street Journal" went on to say:
"Mr.
Clayton
such
was
no
the
State
sooner
Department
return
granted
if
trading
than if not.
that
Government
there
answered
assurance
could
Britain
suggested
of
but
that
believed
to
the
private
credit
Sen. Taft then
Britain's socialist
could
against
continue
to
the United
added:
discriminate
Vinson
explained
that Britain prefers to pursue lib¬
eral trade practices, but that war¬
if it
removed its wartime controls, as
long as it decided where and how
much the United Kingdom should
Secretary
assets
disinvestment
had
of
overseas
deprived her of some
$1,000,000,000 of net foreign ex¬
of
release
4
containing the Presi¬
dent's statement, which we give
in part above, also said:
"The
from
President
the
Office
received
has
Advisory Board of the
of
Mobilization
War
Reconversion the following
and
reso¬
lution:
That
"Resolved:
the
of the Office
Board
bilization
financial
the
dorses
Advisory
Mo¬
of War
Reconversion
and
en¬
agreement
markets which
essential
are
stable and prosperous
to
postwar
thus, to
economic conditions and,
world
itself."
peace
resolution
This
by
signed
was
the following members:
Max
"Public—O.
Un¬
Garner,
der-Secretary of Treasury, Chair¬
Chester C. Davis, President,
man;
of
Bank
Reserve
Federal
St.
Louis; Mrs. Anna M, Rosenberg,
Chairman, New York City Vet¬
Service Committee.
erans
"Agriculture
G.
A.
American
Edward
Federation;
Bureau
Farm
—
P r e s i d e n t,
O'Neal,
James
National
President,
Patton,
Farmers Union.
— Nathaniel
Dyke,
Assistant to the Chairman,
Deposit Insurance Cor¬
"Industry
Jr.,
Federal
poration; Eric A. Johnston, Pres^*
ident, United States Chamber of
Commerce, and President, Motion
Picture Association of America;
H. Mead, President, the
Corporation (paper), Day¬
ton, Ohio.
George
Mead
Presi¬
Cashen,
C.
"Labor—T.
dent,
International
Switchmen's
Union
Railway
North
of
William Green, Presi¬
dent,
American
Federation of
Labor; Philip Murray, President,
America;
CIO."
The resolution
War
was
transmitted
Snyder, Director of
by John W.
and Reconver¬
Mobilization
sion.
organization.
that
Murdock
House
White
March
"
stroy and all countries would suf¬
Senator
loan funds."
the
mittee.
economy
by nonthat resort need
not be made to the banks to raise
and
proposition.
Banking and Currency Com¬
mittee, and are expected to last
for about two weeks. Secretary of
this
so
permanently.
with Britain, which calls for re¬
"We ought to have permanent
moval of barriers to trade be¬
rights to bases we built on British
tween this country and the Brit¬
soil," he said. The Press advices
ish Empire. The Advisory Board
likewise said:
sees
in the British agreement a
"Secretary Vinson testified that
major opportunity, through ex¬
'just as a loan' the proposed $3,panded world trade, to stimulate
750,000,000 credit to Great Britain
the world-wide production, jobs
would
not
be
a
good business
ate
Vinson for¬
Administra¬
securities
Government
suggesting that bases turned over
forced to restrict trade mainly to
time
and
6
*
the end of the fiscal year
before
March
on
told Senators that the fact Britain
the British
largest single Arizona,
war,
people were the
foreign customer
the
price of semifinished and fin¬
ished steel
products, the above
authority notes.
Some steel
Vinson
Secretary
.
for
our
farmers and manufacturers, more
blast furnaces
economic defenses.
strictive
also quote:
operating rate.
Coal and coke
supplies are low in the steel in¬
dustry and the forcing down of
grated companies.
Industry
again sought Con¬
ratification.
In
his
statement on the proposed agree¬
ment, Mr. Truman called it "good
gressional
exporters," he said, adding "this
and needs must be replaced.
How
substantial portion of the
a
ciated
industry to reduce its steel
steel
sufficient
to
the
of "probability, would, if it
more
than three weeks,
realm
cause
within
well
now
a
this
declaring outright on March 4, according to Washington Asso¬
Press advices, the alternative "is trade warfare between na¬
tions."
The Advisory Board of the Office of War Mobilization and
Reconversion passed a resolution approving the loan, which declared
British loan would have to be
that it offered a major
oppor-<®>
raised by borrowings from the
tunity "to stimulate the world¬ change income annually, while
banking system and thus increase
wide production, jobs and mar¬ war
needs
resulted in,the ac¬
inflationary pressures here.
The
kets which are essential to stable
cumulation
of
a
$13,000,000,000
"Journal of Commerce" further
and prosperous postwar economic
foreign debt. He said it was not
said:
conditions
and, thus, to world Britain's strength but her weak¬
"In the course of his statement
ness that made the loan essential
peace itself."
in which he expressed the belief
After
he
had
received
the
and
would, in
the alternative
that
the
United
States
budget
Board's endorsement of the loan, dictate
Britain's
resort
to
re¬
might conceivably be balanced
the President
man
of the de¬
nature
proposals, already agreed
joint statement, precluded
type of discrimination, Mr.
Clayton said*'*
:
On March 7, according to the
"Journal of Commerce," Secre¬
tary Vinson during another ses¬
sion before the Linking Com¬
mittee, denied suggestions that
funds
to
finance
$3,750,000,000
to in
States
in foreign trade even
buy and
sell.
^
"British adherence to the U. S.
Truman Names
Fact-Finding
Board in Rail Wage Dispute
Truman
President
on
March 8
(former
appointed Leif Erickson
Montana Supreme
Justice of the
Court), Frank M, Swacker
York lawyer)
(New
and Gordon S. Wat-
(Economics
Department of
the University of
California) as a
kins
board to
fact-finding
three-man
between
and
nation's rail-?
inquire into the dispute
engineers
locomotive
the
the
and
trainmen
roads, according to an
Press
Associated
that
dispatch, which added
"the naming
of the board will au¬
tomatically
under
for
30
to
walkout
60
custom,
defer
days a progressive
which
brotherhoods
start on March
the two railroad
had
11."
scheduled
'
•
to
^
THE COMMERCIAL & FINANCIAL CHRONICLE
1400
House Passes
The Financial Sitnalion
to Curb Pefrillo
(Continued from first page)
that
shall
we
have
some
of
Bowles
can
do with his price
things which have long control schemes will in the
been "cheap" but non-exist- end make it possible for the
ant) really have had nothing public to keep more of its
at all to do with
inordinately "war gains" than it could
low production, or no produc¬ keep without such controls;
the
tion
at
goods
all,
and
terials.
of these textile
of building ma¬
The
real
fault
found in the fact that
is
manu¬
that
the
most
and the
least
that
price controls such as
those imposed by OPA will
do
is
interfere
to
with
the
facturers pay such low wages!
adjustment of production to
Of course,
the wants and desires of the
they have always
paid such low wages — at people; that the notion that
least, according to Mr. Bowles maintenance of price controls
—even
in years past, when for some limited period of
textiles
and
building
ma¬
time
will
conditions
create
terials
make
were
abundant which
price ceilings
enough, and, of course, ad¬ meaningless and therefore
justment of wages, if neces¬ unessential is nonsense, pure
sary to attract workers, as and simple, since it comes
Mr. Bowles implies, can in the down in the last analysis to a
nature of the case be made prediction of a lower natural
only if the prices asked for price level when production
the goods bring in
enough gets under way, and that de¬
money to pay the increases, spite
unheard-of stores of
but such considerations as "purchasing power" — per¬
these apparently have not oc¬ force accumulated during the
curred to Mr. Bowles—or else war years; and that it would
he hopes that they have not be far better if we as a peo¬
occurred to his audience.
ple could bring ourselves to
But
these
other
and
the
many
sequiturs of which situation
non
Mr. Bowles and the others
daily
guilty
portant to
for
fact
that
it
less
im¬
than the fact—
seem
us
are
appears
be—
to
pleas for continued fiat
control
in
Washington are
making headway with the
rank and file, or else
they
have always had more
"grass
root"
face the fundamentals of this
strength
than
tendency of so many members
of Congress to "wince and re¬
lent and refrain," when the
a vote of 222 to 43 the House
Feb. 21 passed the bill de¬
signed
to
curb
the
actions
of
James C. Petrillo, as head of the
American
while
arise
are
now,
complications
further rigidities
and
introduced
nomic
into the
eco¬
system to add to the
difficulties
of
returning
to
normal conditions.
Part of
But
a
Musi¬
of
The bill, to
quote the Associated Press, "would
outlaw the use of
force, threats
other
or
stations
for
means
to
pay
Committee
both.
A
it is noted,
previously passed the Senate,
the proposed legislation ac¬
and
cordingly
sent
was
to
confer¬
a
ence
committee to adjust the dif¬
ferences.
The
Associated
Press
accounts Feb. 21 stated:
"Representative
author
of
the
Lea
(D-Cal.),
House-passed bill,
predicted the Senators would go
along with most provisions of his
hold
the
or
not
determined
the
eco¬
nomic
the
"The Senate version,
sponsored
Senator
Vandenberg
Mich.), specified only that
terference
would
in¬
non-commercial,
with
educational
be
or
(R-
cultural
unlawful.
any
programs
It
did
not
provide
penalties.
Mr. Vandenberg's bill was aimed chiefly at a
standing
-
controversy
Petrillo's
union
be¬
and
against
voiced by Secre¬
The
stated:
was
Secretary's
prepared
state¬
"(1)
for
It sets up
the
machinery
new
mediation
name
House
Commerce
is
not
men¬
but a
Committee re¬
measure,
port said it
was directed at him,
nearly every lawmaker who
spoke yesterday linked the bill to
The United Press had the fol¬
"crisis" in price
strategy, if such it can lowing to say in advices from
Washington Feb. 21 regarding the
termed,
must
not
be House action:
of
labor
dis¬
nomenon.
in
were
vacua.
a
phe¬
The fact
"The House approved its meas¬
ure
after
rejecting several at¬
Then,
tion
of
in
the
Norris-La-
detailed
a
examina¬
labor
present
laws
complete nullification of all
dial
legislation
standards
and
affecting
labor
reme¬
labor
relations,"
adding:
"I
toward it is to be rational and
think
not
Congress will
policy set forth
protective laws to be
these
frustrated in this manner."
Instead of promoting industrial
peace, the Secretary said the Case
bill "may well initiate an era of
industrial warfare with the power
of government used to
destroy la¬
bor unions."
Incident to the
seven
appointment of
Senators to redraft the
bill, the Associated Press
Washington advises had the fol¬
lowing to say on March 4:
"Chairman
wise.
There
are
Washington who
those
in
are
deter¬
Murray of Montana
Special Labor Sub¬
the
broadcaster
to
those
"he
needs,"
"By
a
down
vote of 70 to
an
26, it voted
amendment
Marcantonio
Rep.
would
which
by
have
guaranteed members of Petrillo's
union
the
and
other radio
employes
right to strike in pressing de¬
mands upon
"Mr.
House
management.
Marcantonio
that
the
bill
told
for
the
first
time in history would make it a
criminal offense for a union mem¬
ber to strike.
For this reason, he
said, the bill is unconstitutional.
The House also
rejected an at¬
tempt by Rep. Charles Halleck
(R-Ind.) to lighten the penalty
provisions.
"Several
amendments
down
also
modifying
were
voted
overwhelmingly."
A reference to the
proposed leg¬
appeared in our issue of
islation
Jan. 24, page 440.
the movement for
continua¬
tion of drastic
price regula¬
tion, understands all or any
substantial
part of all this,
whether he knows it and is
than silly; is to such minds of merely using it for his own
| a part of his "war gains."
ends, or whether he is being
little or no importance.
They
Mr. Bowles Can't Do It
taken in by these
have no real intentions of re¬
wily manip¬
J However all this may be, turning business to business¬ ulators, is not for us to say.
the
drafting
group
Tunnel of Delaware, La Follette of Wisconsin, Ball of Minne¬
sota and Morse of Oregon.
ana,
"Appointment of the drafting
group was agreed to earlier in the
day at a closed door session of the
committee.
It
will
work
with the House bill, sponsored
by
Representative Case of South Da¬
kota, and a number of Senate la¬
bor measures upon which
lengthy
hearings have been held.
"Irritated at published reports
that the Senate Labor Committee
determined
was
the
Mr.
similar
of
which will include Senators Pep¬
per of Florida, Ellender of Louisi¬
Senate
the
removes
of local
violence
are
from the cog¬
courts
problems
and
boycotts which
adequately regulated by
now
local law and substitutes for them
centralized Federal gestapo.
a
The
Wagner Act,
National
as
.
..
interpreted by
Labor
Board, contains
tions
Pielations
adequate limita¬
the rights of those strikers
on
who engaged in true violence."
On the last day of the
hearings,
(Feb. 28) Paul M. Herzog, Chair¬
of the National Labor Rela¬
to
far-reaching
'pigeonhole'
Case
measure,
Murray said he had offered to
send
it
to
on
action under
"Other
a
the full Senate for
Senators
has
con¬
the proposed
(Case)
bill may lead to more difficulties
than it will solve."
Counsel for the National Associ¬
ation of
Manufacturers, Raymond
Smethurst, however, said, in
testifying before the Senate com¬
S.
the
Feb. 25, as reported by
on
Associated
Press,
that
the
NAM indorsed the Case bill's main
objective, which he saw as en¬
couraging private collective bar¬
gaining. Government activities in
the
field
recently, he said, have
private
bargaining
to
reduced
"something less than
a sham." The
Associated Press continued:
"Mr. Smethurst advocated court
protection
of
fulfillment of
legalized
courts
not
employers
in
the
contract and 'not
a
black
jack.'
He
said
hold that contracts
now
are
binding against labor and that
'unions
can
escape'
now
punish¬
ment for violations.
"Senator Taft
about the
(R.-Ohio), asked
possibility of requiring
unions
incorporate. Smethurst
to
said this would meet the question
of usability but might limit the
determination of responsibility."
to
Members of the Senate opposed
the Case legislation have pre¬
dicted that it would,
never
be
re¬
ported out by the committee. Sen¬
ator
bor
Murray, Chairman of the La¬
Committee, on Feb. 21, accord¬
ing
to
from
Associated
San
that
Diego,
the
measure,
unions."
bill
Press
advices
Calif.,
asserted
"an
was
extreme
designed to destroy labor
Truman Apsroves Bill
Passed by Congress
for
Participation in UNO
House-approved
in
the
tion
when
the
United Nations Organiza¬
because
law
a
President
legislation
on
Dec.
Truman
making
20,
signed
provision
for the appointment of
represen¬
bill
would set up an independent me¬
labor, industry
and the public represented.
It
also
would
permit
injunctions
against intimidation and violence
in labor disputes and would direct
a
'cooling
off'
period
before
strikes.
en¬
of
participation by the United States
committee
diation board with
another only at certain
one
then offered
hearings.
"The
Labor
The bill designed to provide for
ing subcommittee and this was lat¬
er modified by Senator Pepper to
cover only legislation upon which
Senate
National
Senator
said
the suggestion for a special draft¬
the
definite clash between
was a
ten-year-old
upon
negative report.
Donnell of Missouri
ducted
tions Board, told the senators that
after
Chairman
not those "he wants."
of
mittee
do
strict the provision which governs
the number
of
employes of a
re¬
"The bill
nizance
not needed, added:
actment
telling reporters
that he was not stalling Senate
action on new labor legislation.
"Mr.
Murray
named
himself
House did agree, however, to
with
argu¬
was
de¬
nitely inferior."
Part of the bill,
he said, "is an open invitation to
selected
The
"seethes
animus," and, in
ing that it
points, but where they do, the
clared that the Case bill "is defi¬
committee
it.
legislation
and
practices, Mr. Schwellenbach
tempts by Democrats and Repub¬
weaken
entire
anti-labor
Relations Act and the Case
bill,
and stated that the two
"impinge
and
Guardia Act of 1932."
licans
to
Mr. Pressman said that the
the
Act
of the matter is that it is
part
alike
Federal anti-labor ges-
a
tapo."
lations
be
if it
drive for
amending the National Labor Re¬
Case
as
Prob¬
there
the
viewed
appointed
"(2) It attempts to restrict the
organized activities of workers by
in
either
were
control bill.
man
terlochen, Mich.
in
hearings by the
series of proposed
a
putes.
allow the national
"Petrillo's
the
on
Senators
seven
the
ment said the House measure has
two principal objectives.
the
this
planners and managers
the people mined that many of those
is in any
shall be continued
very great degree a policies
result of such specious but which during the war years
superficially plausible argu¬ created all this upward pres¬
ments as have of late been sure on prices, and they fond¬
employed so freely in defense ly suppose that they can keep
of price, and
perhaps other these policies in force without
types of extensive control price increases if only they
over the
economy, is by no decree that no such increases
'means clear.
It may be more shall occur.
Whatever may
largely an outgrowth of an be true among the rank and
unreasoning fear of "inflation" file across the country, a sub¬
which the
Washington prop¬ stantial part of the strength
agandists have been able to which in Washington is being
instill into the minds of the marshalled in support of con¬
great rank and file. And, tinued i price control stems
naturally, every one wants to from the knowledge that cur¬
be able to command
goods in rent official policy must in¬
quantities corresponding to evitably^ place still greater
the degree in which he has upward pressure
upon prices.
That this fact renders many
enlarged his ownership of
dollars or their equivalent. of the asShrfihces now being
Otherwise, of course, he loses given sb !;giibly hardly less
tatives of the
United^ States to the
UNO. The bill
Senate
House
18.
in
was
Dec.
4,
passed by the
and
amended form
by
on
the
Dec.
Because of the differences in
the
to
on
bills, the legislation
conference;
as
was
sent
adjusted by the
The fact remains that the
other men if
Conferees the bill was agreed to
they can help it, and
"Chairman
Murray
said
the
American people will
record they are quite accustomed to
again drafting subcommittee will meet by both the Senate £nd House
find themselves in
straight, we feel constrained getting what they want
essentially on Wednesday to begin its work." on Dec. 19, the President
and
;•
Ad¬
opposition
National Music Corporation at In-
tioned
of
House-approved strike
number of witnesses.
a
measure was
control
to have upon
seem
dealing with labor strife,
ministration
measure.
by
28
ably the most controversial of the legislation considered
by the Sen¬
ate Committee was the
House-passed Case strikes settlement bill which
drew protests during the
hearings $-
vices it
milder measure,
had
Feb.
on
Education and Labor
It tary of Labor Lewis B. Schwellenbach, who, on Feb. 25, according
to Washington advices to the As¬
more workers than needed or to
sociated Press, told the Committee
halt foreign programs or
any type
that the Case bill was "hodge¬
of
non-commercial,
educational
podge" legislation which might
or
cultural
offering.
Violators break down the established
pat¬
would be subject to a
year's im¬ tern of
employer-employee rela¬
prisonment or a $1,000 fine, or
tions. In the Associated Press ad¬
the Federation leader."
time
comes
to
parcel of the more gen¬
meet
Mr.
Bowles, and the others who eral concept of a controlled or
argue in a like vein, with an managed economy, and must
unequivocal and unshakable be so regarded if our attitude
Whether
conclusion
on
March 4 to rewrite the
on
and
"No."
for
using phonograph records.
and
Whole
Following the
Senate
measures
from
to compel radio
tribute to unions
1946
Senate Committee Concludes
Hearings on Case
Bill—Seven Senators Named to Redraft Bill
also would prohibit
any action to
require broadcasters to employ
tween
further
Federation
cians, AFL affiliate.
rather than to
defer it from time to time, long
many
had supposed.
It is difficult
otherwise to understand the
By
on
Thursday, March 14,
if
than
for
to
no
keep
to set down in
reason
the
by
the
same
affixing
position when the
In the opinion of Lee Pressman, his signature to the bill on
Dec.
question of further extension Congress of Industrial Organiza¬ 20, as indicated above.
words and few" the obvious
Jqast said the better. Whether
of price control arises.
tions counsel, who testified at the
A reference to the Senate ac¬
They Senate Committee hearing on Feb.
fact—for obvious it $eexo$ to Mh
Bowles, who has now be¬ may as well, indeed
they had 27, said the Associated Press, the tion appeared in our issue of Feb.
us
that nothing that Mr. come the
head and front of better, face the facts now.
Case strike control bill is a "new 25, page 1078.
"straight-flung
—
1
methods
about
which
the
Volume 163
THE COMMERCIAL & FINANCIAL
Number 4472
*
*"
—
—■
-
m
.mm
.
^
Administration Plans for U. S. Loan Aid,%^rTrm
4
1401
.m
■*!
eign needs will involve negotiar
tions forr loaes 'commitmentsfay
the
Export-import
Bank
of
ap¬
proximately$3,250,000,000 in the
period
from
January,
1946,
President Truman transmitted to Congress on March 1 the report
the National Advisory Council on International Monetary and
of
through
June, 1947. This is ex¬
clusive of the proposed credit to
of United States foreign Britain.
Since the available funds of the
lending policy. In an accompanying message he gave full approval
of the statement which limits foreign loans by the United States to Export-Import Bank
are
about
$3,250,000,000 until June 30, 1947, not including the $3,750,000^000 $2,000,000,000, it will be necessary
Financial Problems setting forth the terms
.
■
British
credit
Board of Directors of the Export-
said, according to a special dis¬
patch from Washington to the
Import Bank.
New York "Times": "it is the view
Truman
of
soon
the
Council
that
British
the
accompanying message Mr.
In his
ask
would
that he
indicated
the
raise
to
Congress
unique and will not be lending authority of the Exportprecedent for a loan to any other Import Bank an additional $1,250,000,000, which, with the present
country."
Summing up the United States residual margin of $2,000,000,000
policy statement, the "Journal of would comprise the $3,250,000,000
Commerce" pointed out that it expected "ceiling." It is known
that the President is planning on
was predicated
on the fact that
the International Reconstruction a $1,000,000,000 loan to the Rus¬
Bank will, during the 1947 calen¬ sian
Government, which would
leave $2,500,000,000 to meet the
dar year, be able to take over the
total requests of all other powers,
primary
international
lending
is
case
role, where private investment is
not forthcoming.
The
Commerce"
of
"Journal
continued, "the NAC said that the
Bank
will
begin
exclusive of Great Britain.
In part
the report of the Coun¬
said:
cil
In
July, 1945, the Congress, for
of making loans to
war-devastated areas during the
the
operations in the latter
1946. However, since it
will take time to develop a lend¬
ing program, it will probably not
be in a position to enter into more
of the International Bank and for
lending
of
than
commit¬
volume of
small
a
"Transmission of the
had
to
policy dec¬
Congress at this time
one
as
of its main objectives
removal
the inauguration
period prior to
American
of
promotion
ex¬
ports and other special purposes,
increased the lending power of
the
ments this year.
laration
purpose
the
of
Congressional fears
that in approving the British loan
agreement,
Congress would be
opening the door for a flood of
foreign loans which might play
Export-Import Bank by $2,800,000,000, making its total lend¬
ing power $3,500,000,000. At the
end of
1945 the Export-Import
Bank
had
outstanding commit¬
including
ments,
ized
for
cotton
which
of
000,000,
author¬
$1,560,$1,040,000,000
money
loans,
of
committed in the last half of
was
The
1945.
during
ply
last half of 1945 consisted of:
a period of continued sup¬
shortages and send the na¬
tional debt soaring to new heights.
"In laying out the carefully cir¬
cumscribed foreign lending pro¬
gram, the Administration stressed
that the inflationary dangers in
terms
of
the
domestic
supply
situation,
would
be
extremely
limited.
In
particular,
it
was
noted
that
United
a
foreign
same
as
a
here; there will be a time-lag be¬
tween the
commitment and the
expenditure.
loans
will
and large, the
employ unused
By
to
go
productive
elimination
of
already
some
which
capacity,
in
the
the policy statement
the fact that in the final
loans must be paid in
and services, the sale of
which will be facilitated by a high
analysis
goods
proposals
trade
trade.
The
state¬
repayment
loan
links
ment
the
world
to
wth
world
reduce
barriers at the forthcoming
International Commercial Confer¬
ence.
In
addition,
to Belgium, Neth¬
France;
and
(B)
and
Norway;
(C)
various
$100,000,000 available
to
European countries in¬
cluding Finland, Belgium, Czecho¬
slovakia, France, Italy, Nether¬
lands, Poland for the purchase of
cotton
raw
countries will
exceed
new
lending
would involve an excess of United
of goods and serv¬
ices over
total exports of this
kind. At the same time, the coun¬
States imports
cil estimated that annual
interest
and amortization payments on
the
entire present and contemplated
Export-Import Bank program, the
British loan and the International
floated
Bank
loans
States
markets
will
United
in
be
less than
1947 about $50,000,000
repayment of principal and
an additional sum (possibly $100,000,000) from the cancellation of
Pending
the
Woods
Bretton
legislation; by Secretary of State
James
F.
Byrnes, Secretary of
Commerce Henry Wallace, Marriner S. Ecles, Chairman of the
Board of Governors of the Federal
Reserve
System,
and
William
of the
McC. Martin, Jr., Chairman
which the Congress will be asked
to make available to the bank. It
is
established
the
United
States
policy
of
Government
the
care¬
scutinize each loan ap¬
plication to determine that the
need is urgent and that the funds
fully
to
be
can
obtained
than
Bank.
.
.
from
the
other
no
Export-Import
.
It is
expected that the proposed
international
trade
organization
will play an important role in se¬
curing the international economic
environment
necessary
for
the
maintenance
of
high
levels
of
world trade.
The
operation of the Interna¬
tional Monetary Fund should as¬
the orderly functioning of a
sure
of multilateral payments,
system
and this will make it possible for
debtor
countries
to
their
convert
surplus with any country
into the currency in which their
obligations must be discharged.
export
Fundamentally,
ability
however,
foreign
of
the
countries
to
foreign
loans to the United
States depends upon the extent to
on
which
make dollars available
we
to the world
through through im¬
ports of goods and service, includ¬
ing
personal
remittances
and
tourist expenditures, and through
abroad.
investments
new
As
last resort,
a
of
the world out¬
United
the
has
States
a
gold production of possi¬
bly $1,000,000,000 per year to add
to their present foreign exchange
reserves,
which can be dipped
current
insure payment.
into to
long
amortization
in¬
and
interest
for¬
outstanding
on
opera¬
Bank, it
will
depend on many future develop¬
ments.
are
in
...
loan
stated
here
full accord with the
policies
basic
United
The
States.
National
Export-Import Bank for re¬
construction and development to
the
and
the
immediate,
of the borrower.
taken
tors
minimum needs
Among the fac¬
consideration
into
in
making loans of this character
(1) the urgency of the need
borrower; (2) the borrow¬
er's own resources; (3) the pos¬
sibility of obtaining the loan from
other
sources,
private
capital
markets and other governments;
are:
of the
(4) the ability of the borrower to
effective use of the funds;
make
(5)
to
the capacity of the borrower
repay, and (6) the impact of
loan
It
on
our
domestic
econ¬
consists
of
Treasury
the
as
Secretary of
Chairman, the
Secretary of State, the Secretary
of
Commerce,
the
Board
Federal
the
the
of
Reserve
of
Chairman
Governors
Chairman
Directors
the
view
of
the
Council
establishment
and operation of the international
bank, this Government can meet
only a small proportion of the
undoubtedly large needs of for¬
eign countries for credits for re¬
construction and development.
pending
After
of
of
System,
the
Board
of
the
and
of
the
Export-Import
Bank,
has
the
responsibil¬
ity of coordinating the lending
and credit programs of this Gov¬
ernment, and of achieving maxi¬
mum consistency between Ameri¬
can Government lending and the
lending operations of the Inter¬
.
Maritime Commission of the Bos¬
ton Chamber of
Commerce, in ex¬
pressing vigorous opposition. Mr.
Foley, according to Associated
Press accounts from Washington,
said of the entire project that it
"cannot help but do more harm
than
good to
The
the
whole."
nation
as
a
Press
Associated
likewise said:
"Chauncey J. Hamlin, Buffalo,
Chairman of the Niagara Frontier
Planning Board,
a
long-time foe
the
careful
consideration
of
This
country is
United
factors
the
Council
has
con¬
Nations
supporting the
Organization
wholeheartedly, and the success of
the United Nations Organization
depends not only
on
political
agreement but also on economic
improvement. These loans are for
economic
reconstruction
draft could not Use^the projected
27-foot channel.
^
>
No prudent American ship¬
and
de¬
-
x,
i
would operate ocean-going
through the Seaway if it
developed,' he said, 'because
of the difference in sailing condi¬
owner
ships
were
tions
between salt and fresh
ter; that tendency
wa¬
the part of
ships to bob, the dangers of the
on
,,
and tortuous channels and
narrow
of fog, and
limitations.
the present insurance
He predicted that the
of the Seaway, gave this summary
of his group's opposition:
project's construction would de¬
stroy the American Great Lakes
generally ruin¬ fleet in the face of cheaper for¬
ous
to American commerce and eign competition.'
.
"Charles J. O'Leary, transporta¬
industry, labor and capital, that
its nation-wide deleterious effects tion expert of the New York Pro¬
would
far
exceed
whatever duce Exchange, opposed the proj¬
claimed
a
advantages
might
re¬ ect as
spokesman for export
bound."
grain marketers.
In the market¬
"Disagreeing with proponents' ing of such grain, he said, any
claim that the Seaway could be saving in freight rates went not
made self-liquidating through im¬ to the seller but to the foreign
position of tolls,"' Mr. Hamlin said: buyer."
: yp: :;s
"This suggestion is nothing more
Witnesses opposed to1 the St.
or less than a red herring drawn
Lawrence Seaway project closed
across the dams to attract a few
their week of arguments before
doubtful votes and lull the justi¬ the subcommittee on March 1 with
fied criticism that the whole proj¬ a New York consulting civil engi¬
"It would be
is
ect
so
colossal
a
waste
of
public
funds."
E. P. Goodrich, putting the f
neer,
over-all cost far above the figures
The
railroads
strongly
opposed
a
faction
the
project.
are
to
Walter J. Kelly, a spokesman for
the Association of American Rail¬
by supporters of the pro¬
We quote from special ad*
vices from Washington to the New
York "Times," which in part also
given
gram.
roads, termed the estimate by the
Department of Commerce of traf¬
said:
fic
savings in transportation
costs as "exaggerated far beyond
any reasonable possibility of at¬
Pennsylvania witnesses voice
tainment."
coal
and
The
President
Short
Line
of the American
Railroad
Association,
"The
Senators
heard
also
four
op¬
position based chiefly on fear of
what the project would do to the
industry.
These witnesses
joined by Martin a. Miller,
national legislative representativewere
Brotherhood
the
of
J. M. Hood, said, according to the
Associated Press, that need for the
Trainmen,
Seaway in the interest of national
President of the
defense
Railroad i
of
Association.
was
argument "wholly
an
fallacious."
He added, "The war
just past has proved such slow,
circuitous, seasonal, and limited
the
is
fighting of
adopted
not
a war
to
at high tem¬
po."
Goodrich
"Mr.
put the
cost
of
the
project
'conservatively' ; at
more than $660,000,000. of which
United
the
States
would
provide
than $450,000,000.
more
this
"But
On Feb. 28 three New York City
Macleay,
Mississippi Valley
and Lachlan
outlay
would
only'
*
permit ships using the channel 'to
witnesses joined
cruise around in the Great Lakes
the
without
those opposed to
James W. Danahy,
Vice-President and managing di¬
project.
of the
rector
tion
West Side Associa¬
Commerce of
of
New
York
City, told the committee, accord¬
ing to advices from Washington
to the New York "Times," that if
into
coming
-
port,'
he
•
added, until the Federal Govern¬
ment spent $17,000,000 more for
deepening port channels and local;;
interests laid out another $56,000,000 to build and expand dock and •
facilities
related
at
American
the project were as successful as
its proponents asserted it would
ports."
be, it would materially reduce the
Transportation
Bureau
of
the
Commerce & Industry Association,
City and thus the business of the
whole country, because New York
was the largest single customer of
all the States.
The "Times"
ures on
pected
added, "Citing fig¬
losses which might be ex¬
from
the handling in the
of only one im¬
George E. Mace, Manager of the
was
also heard in
opposition to the /
project, and M. D. Griffith, Execu¬
tive Vice-President of the New
York Board of Trade, in opposing
the project
on
before the commiittee
Feb. 28 said:
-1,iV!
possible expedient has
the proponents, first
ported
commodity,
sugar,
Mr. as a treaty, then seeking to have
Danahy continued:
it handled by agreement, now in'Looked
at
fyom a national corporatd in the new joint resolu¬
We have always regarded
viewpoint, the situation might be tion.
considerably less alarming if the this,
to express
it in modern,
greater part of this lossage were terms, as an atomic force threat¬
to be offset by new-business in ening us.
other American communities'."
"Let us all recommit ourselves to
New
York
Port
"Every
been used by
"
"Cornelius H.
tive
Callaghan, Execu¬
Vice-President of the Mari¬
Association
time
of
the
Port
of
said that proponents'
estimates of the traffic the SeaNew
York,
our
traditional private American i
their foreign trade from
excessive
regulation, and expand their trade
with
Let us firmly "
enterprise system.
and finally
declare that we have no
intention of 'sinking the Statue
Liberty in the
velopment. They will enable the
borrowing countries to increase
cluded that the most urgent for- their
own
production,
relieve
all
been particularly outspoken in declaring the
plan illHenry E. Foley, repre-^
; ' ''
senting the New England Con¬ Way would carry were - 'theoreti¬
ference in Opposition to the Sea¬ cal,
fantastical and erroneous.'
way, was joined on Feb. 26 by Mr. Callaghan said that even the
Frank S. Davis, director of the lighter American
ships of 24-foot
national Bank.
is
that,
Advisory
the
have
ests
advised.
economic importance of New York
political and economic interests of
the
*
transportation
American
as new
exceeds
vestment
Council,
which
was
established by the Congress in the
Bretton
Woods
Agreement
Act
the
of
the limits of the additional funds
The
effective
the
omy.
terms
careful
screening that it will be possible
to carry out the program within
earlier commitments.
signed by Sec¬
retary of the Treasury Fred M.
Vinson, as Chairman of the Coun¬
cil, which was created under the
was
through
American investment abroad
1946, the Export-Im¬
port Bank had unused lending
power of $1,900,000,000 for mak¬
ing additional commitments.
In
addition
to
the
$1,900,000,000,
there will be available during the
$1,000,000,000."
The report
only
fiscal year
On Jan. 1,
has been the policy of this Gov¬
ernment to limit loans
through
would
is
It
from
tries.
duction, exclusive of the United
will add another $1,000,000,000 annually.
"Looking ahead to the time when
loans
min¬
a
figure.
As
tion of the International
the NAC said this net repayment
imum
and
Monetary Fund; world gold pro¬
payments on United States foreign
Council believes that it is
eign investment, the question of
net repayment on our total foreign
investment
will
not
arise,
al¬
though as individual investments
are
paid off the composition of
our foreign investment may shift.
It is impossible to prophesy when
receipts
on
foreign
investment
will exceed new investment, as
have access to the Bretton Woods
States,
Although this
increase,
the
substantial
a
side
port and development programs,
mostly to Latin-American coun¬
"On the chances for repayment
of
lend-
brought
cases
of the loans,
level
the
(D) $120,000,000 for specific ex¬
about.
stresses
in
has
demands
war
included
been
lease programs
expenditure
government
of
erlands
is
transfer interest and amortization
$165,000,000 for the pur¬
chase of other goods and services
necessary for the
reconstruction
loan of Belgium, Denmark, Netherlands
States
commitment is not the
had
the
$655,000,000 for the pur¬
goods which originally
(A)
chase
by $1,250,000,000.
the
$1,040,000,000 of
commitments
made
during
havoc with the domestic economy
to carry out this pro¬
to ask Congress to increase
the lending authority of the bank
gram
source
International
half
order
in
Con- *
under
now
gressional consideration. The NAC
Opposition to St. Lawrence Seaway
"The.views of witnesses opposing the St. Lawrence .seaway and •
water project were concluded on March 1 by the Senate
Foreign
Relations Committee, opponents laying before the subcommittee
reasons why the United States should not become a party to such an'
international development,. Representatives of New England inter¬
!
ids'."
Six
of
International Rap¬
•
days of
rebuttal testimony
us.
Economic
stability
will
foster
—three
each for
proponents and
opponents—in the week of March
This program of foreign
lending is essential to the realiza-. 4 were scheduled by the bommittion of the main objective of:*thei te'e to conclude the hearings. View
foreign economic policy df jtfafe
b| feroponehts^breyiQiisly heard,
United States, which is to lay the
were ^referred to in - our • issue of
of
peace.
economic
peace.
foundations
''We
Feb. 28, page
1136.
,
<
1402
THE COMMERCIAL & FINANCIAL CHRONICLE
Business Failures in Jan.
U. S. Acts to Avert Famine-Hoover to
Survey
Europe's Needs; ICC Eases Freight Movement
Business
were
of
December.
what
there
aid
is
justified.
Clinton P. Anderson announced
Hoover, who carried
World War I.
Feb.
on
27
to
man
March
on
relief
foreign
out
President
confer
the
on
of
the
action
1, Mr. Hoover
arrived at the White House for
a
save
meeting with the President at
which they were later joined by
.Secretary of Agriculture Ander¬
in
the
each
the
time
the
President
of
trades
The
called
upon
a
dozen
other private citizens and officials
which
same
Truman
form
Famine
a
Emergency
to
Chester
be
last
war
as
the .members
this voluntary
Press
March
was
the
the
on
of
the
It
Associated
seriousness
starvation
of
for
the
30
Europe following the first World
War. It is probable that he will
Americans of good will can do
more and do it faster than
any
go to France first.
system of
accompany
Government
stated
rationing
that
orders.
including
agreed
fopd
Speed is vital.
It was
that the greatest good
could be done by saving wheat
wheat
and
products
and
Mr. Anderson
several
Mr.
Dr.
F.
R.
allocations
will
persons
Hoover
abroad,
Fitzgerald,
officer
of
the
Agriculture Department.
In another
development of the
food
campaign, the Associated
food
oils and fats.
(Figures given the Committee Press reported from
Washington,
by the Government indicate that the Interstate Commerce Com¬
reduction of 25% in the present
consumption of wheat and wheat
mission
products
Railroads
a
is
needed.
The
of
Com¬
mittee, therefore, urges that, be¬
ginning now, our people reduce
their consumption of bread and
of
in
which
and
fioover's
.Mr.
tions
for
the
enrolled
the
of America.
most
the
immediate
for coping with the situa¬
tion are to be found in the tele¬
speed
Associ¬
Car
of
Di¬
"to
control,
use,
the
Service
regu¬
supply,
carriers
common
The
order,
5,
As
in
the
Kendall
(at
Standard
expires
June
or
suspended.
Commission's
direct
can
any
agent,
nailroad
gram which the former President
sent to Mr. Anderson
prior to the
Washington conference,
point where they are needed. The
prder applies to cars moving in
intrastate and foreign commerce
the
text
of
as
the
taken
message
given by the Associated Press:
The
first
accept,
distribute
well
as
deliver,
freight
as
transport
at
cars
interstate
or
any
step is for you as
Food Administrator to be
given
complete authority over elimina¬
practices which conflict with the
tion
order
of
waste
and
unnecessary
hoarding, substitu¬
consumption,
tion of foods, and control of
ports and imports.
The
gear
second
step in
organization
your
order
is to
ex¬
All
to
de¬
ICC
rules,
were
regulations
and
suspended.
The Commission
previously had
wheat,
corn, meat and other
foods for export and to
essential
the
movement
termine:
country
.(A) World need.
(B) World surpluses.
,(C)
Possible
American
surpluses.
JD) What kind of food in all
of
grain
from
elevators.
,
'
commerce.
granted priority to the movement
of
.
.
,
J cases.
,
food
you
and
should export
from the United States
without
Injury to public health.
I
can
cannot
this phase
adequately advise
it would require
as
on
The third
step is to constitute
the State directors of the
ment of
Depart¬
Agriculture
administrators
agents
as
and
•
county
as
State food
the
food
county
adminis¬
trators.
The
starving
abroad
each
of
step is for
the
ciations, such
rants,
bakers,
etc.,
ine
"without
race, religion
lief j" was made
dent
Hoomer
March
9,
to appoint
committees
spected
leader,
you
food trade
as
hotels,
to
asso¬
restau¬
packers,
millers,
emergency fam¬
under some re¬
they,
together
peoples
differential
as
political be¬
by former Presi¬
at
or
Washington
on
according to
United
Press advices, which also had the
following to say: Mr. Hoover thus answered CIO
and
$1,141,000
left-wing criticism of his ap¬
as
honorary chairman
President
Truman's
Famine
Committee. The CIO
Emergency
Women's Auxiliary
the
food
former
as
had accused
President of
using
"a
reactionary weapon"
in his relief missions to
Europe
after the
War.
That
and
would
was
first
compared
December.
an
be
then,
Mr.
now,
interview.
In reply to a
question about the
CIO criticism of his
appointment,
Mr. Hoover said that "if
they
we
with
liabilities
23
in
Whole¬
in
$79^000 in De¬
$245,000 as
with $125,000
10
December.
Con¬
struction insolvencies
in January
to 8 from 2 in December,
and liabilities rose to $155,000 in
January from $107,000 in Decem¬
were
up
ber.
Commercial service failures
in January were
up to 12 from
5 in December and liabilities were
up to $2,279,000 in January from
$372,000 in December.
When
the
country
Reserve
is
Atlanta, Kansas
City and Dallas Reserve Districts
fewer
than
in
land
and
failures
in
December.
St.
January
The
Louis
tricts had the
all
Reserve
Dis¬
same
insolvencies in January than
When the amount
of
liabilities
involved
is
con¬
sidered it is seen that the Cleve¬
more
land, Richmond, Atlanta, Kansas
City, Dallas and San Francisco
Reserve Districts had less liabili¬
ties involved in January than in
December.
While
had
the
may
or
time
supported
the
demo-
in
3.
real
of
time
limit
estate
4.
and
Provision
40
years
for
on
purchased by
remaining
more.
quently
'
broadens
assistance
of
may
lot
include the Cost of the
now
on
which the veteran
intends
to build.
; 6. Certain delinquent indebted¬
may be refinanced.
ness
Farm loan provisions allow
improvement of ground or
buildings,
construction
of
new
>
7.
for
buildings, and
chase
live
of funds to pur¬
use
stock
and
seed
or
for
working capital.
1
8. Business loan
provisions now
purchase of inventory and
of funds for working capital.
allow
use
9. Benefits
sons
on
are
terminal
extended to per¬
leave or hospi¬
final
the
pending
persons
in
discharge,
military or
service of governments al¬
with the United States who
Quarter Century Club of the Na¬
tional City organization
gathered
the Hotel Astor on March 12
at
for
the
tenth
annual
banquet
which honors those of the staff of
the National
City Bank of New
York, City Bank Farmers Trust
continuously.
Club
were
of the
members.
first
group
there
S.
254
members.
Rentschler, Chairman
Board, acted
addresses
When
started, in 1937,
only
as
also
were
host.
made
and
principal service organiza¬
tions, the regulations and forms
drafted under the
of Francis X.
direction
Pavesich, VA Loan
Guarantee Service Director.
Re¬
cers
distribution
and
Qolonel R.
sistant
P.
directed
was
by
Bronson, Acting As¬
Administrator
of
of
City Bank Farmers Trust Co.
Charles V. Sheehan, Vice-Presi¬
Contact
and Services.
dent, who is Quarter Century Club
Chairman, presided.
27,
appointed Randolph Paul, tax ex¬
a
special
$10,000-a-year
Presidential Assistant.
war),
we
"We
did,
also
every
the
all
the
governments,"
he
added:
Mr.
task
Hoover
this
after the last
asked
was
time
was
if
greater
the
than
is
being asked to
he
than
replied.
smaller.
years
after
"But
meet
the
the
now
are
last war,"
supply
is
After all, we've had five
of
nations
war
White
will
and
are more
House
advices, Feb. 27.
the
European
from
and
other
mortality savings
"During the '20s, the marked
improvement in mortality and the
increase in gains
corresponding
from that
had the effect of
source
concealing, during the early and
mid-'30s, the consequence of the
interest
rates
when
they
began
precipitate
decline during the past 10
years,
however, has created such a con¬
slowly
fall.
to
dition
The
that other
of gains
sources
must
carry
an
ever-increasing
burden and can no longer conceal
the
reflection
of
falling
in the cost of
rates
interest
policyholders'
life insurance.
"The
drastic
decline in yield,
by the decline in
long-term U. S. Gov¬
illustrated
on
ernment bonds
from
has
during the period
4%
to
radically
less
than
reduced
the
rate earned by this company,
and
by
insurance
all
companies,
on
their invested assets.
This in turn
has
substantially increased
the
cost of the life insurance
protec¬
tion possessed by 27,000,000 Amer¬
ican families, because it has re¬
duced
the amount that otherwise
have been available annu¬
would
ally for
holders.
distribution
to
policy¬
"Careful examination of 11
life
insurance companies, selected be¬
of the general
similarity of
cause
their
operations, indicates that if
said
to
policyholders could have been
by at least $76,000,000.
On this same basis, all
companies
increased
the
could
that
life
insurance
business
have
increased their divi¬
dends in 1945 by at least $323,000,000.
The
view — unhappily
widely
a
held—that
cause
low
harm
no
interest
and
impose
is, therefore,
wholly fallacious one."
no
cost to any group
Paul
conduct
negotiations for the
Department with various
European
nations
which
were
State
neutral during the war on the
subject of external German assets.
These advices added:
Charles
G.
Ross,
Carpenter Heads Fibre
Drum Mfrs. Assn.
Herbert L.
of
the
Carpenter, President
Carpenter Container Cor¬
poration,
Press
Secre¬
Brooklyn,
N.
Y.,
was
elected first President of the Na¬
tary, said Mr. Paul's appointment
tional Fibre Drum Manufacturers
would
Association
Mr.
be
effective
Paul,
ficial,
was
a
a
of
tomorrow.
former Treasury of¬
familiar figure on
Capitol Hill for
sideration
depleted."
deficiency,
derived
ciency.
rates
Associated
war.
"The demands this
Government
smaller
the
to
Press Washi igton
one."
supported
communistic
According
less
there
and savings in
expense, must be
diverted to make good that defi¬
in
President Truman
pert,
Governments (after the last
is
amount,
interest rate had been only
1% higher in 1944, their dividends
Presidential Aide
Feb.
interest earned
earnings
can
policyholders.
the
Randolph Pant Named
On
the
required
1933-1945
were
to
interest
2j/2%,
Short
by W.
Randolph Burgess, Vice-Chairman
and Lindsay
Bradford, President
cratic
the
an
Cooperating in conferences with
representatives of the major lend¬
ing organizations of the nation
gional office loan guarantee offi¬
were thoroughly oriented in
the new procedures at three-day
Taking
into
consideration
the
overseas
branches
of
National meetings held at convenient ooints
City, there are now 1,243 Quarter throughout the country. Printing
Co. and affiliates who have
served
for 25 years or more
Century
is
entering such service.
More than 800 members of the
the
than
the rate
U. S. citizens at the time of
years
during
wartime
tax
Recently he has been a tax
in private life.
sultant
convention
dore
con¬
Mr.
bills.
the
con¬
-
periods—in
interest which
excess
returned
best
were
long
required,
there is
lied
Quarter Century Club of
for
sources, such as
5. Loans made for construction
On
contracts
"If the interest earned is
great¬
than
the
amount
er
both the
veterans.
to
issue
75 years or more.
cases
naval
National City Bank
they
that may remain in force, at fixed
some
farm
and conse¬
the scope of
invested funds.
upon
basis
premiums,
on
lender,
and
Annual Banquet of
earned
lender.
a
choice to
a
and
compan¬
minimum rate of interest will be
But if the
allows
the
extremely low
their premium rates on
assumption
that
a
certain
be
veteran
the
base
the
made
This
policyhold¬
seriousness of
that
loans in lieu of guaranty of up to
15%
of the aggregate of loans
or
there is
adequate
an
"Mutual life insurance
ies
on
insurance
last'
interest rate has created.
realty.
■
of the
situation
this
of
however,
quarters,
some
and
ers
which
payment to 25 years
the
over
of the interest rate to
of
take advantage of
insurance from two
Extension
rate
"Unhappily,
ten years.
terms
Cleve¬
number, while
remaining Districts had
the
to
it
is found that the
had
veterans
guarantee
of
interest
understanding of the importance
Increase of guaranty on real
estate loans from $2,000 to $4,000.
Extension
the
not, in
one
case
divided
Districts
,
of
1.
2.
Money Rates
decade.
delinquent indebtedness.
on
and
(Continued from first page)
ing out of the inordinate decline
Principal changes in the Act, as
amended, the VA states, include:
credit
Federal
into
World
not the case
not
Hoover said in
mean
in
with liabilities of
pointment
of
from
December, and liabilities were up
to
$1,677,000 in January, from
Gordon
before and
fourth
terminal
The statement that he
expected
American relief food to be dis¬
tributed
to
ex¬
investigations at home
and abroad, and I assume you al¬
ready have such information.
to
•
haustive
ask
elevators
to
(E) How much of each kind of
35
11:59
Time)
5 .unless
to
from
to
up
loan
liberalized
was
Decline in
it is
exception is
additional document in the
a
Bill
deadline.
procedures,
The sole
once.
were
28
talized
otherwise modified
means
sale group had less liabilities in¬
volved in January than in De¬
in Jan¬
March
new
exemplified by the fact that the
veteran is normally required to
sign only one legal-sized sheet
considered, only the whole¬
Manufacturing failures
the
the
added VA loan guarantee forms
have been materially simplified as
cember.
uary
of
Under
January then in Decem¬
When the amount of liabili¬
ber.
Districts
effective
Eastern
a.m.
amended, VA
completed the task 23 days in ad¬
vance
GI
.
Warns of Continuous
distribute the regulations af¬
the Act was
ter
in
ures
in December.
the United States."
March
recommenda¬
The
authorized
was
between
or
organiza¬
many
are
women
to
movement, distribution, exchange
and interchange of cars
to, from
,
tions
men
the
the
over
box-cars
Association's
to
one
American
Kendall, Chairman
vision,
ev¬
ery
abroad.
Mr.
The Committee
appeals for co¬
operation
in
this
program
to
American,
of
power
of
late
individual
broad
shipments
way.
every American home and to
Association
ated Press added:
every pos¬
every
the
movement
wheat products.Conservation of
food oils and fats now
going on
should be increased in
sible
Warren C. Kendall
gave
and
a year ago.
cember. Retail failures numbered
22 with liabilities of
tact many persons who aided him
in the food relief
program
in
excerpt:
$1,824,000
involving $5,-
80
fully organ¬
are
expected
to
leave
the
United
States shortly, and hopes to con¬
untold
and
anticipated
that
Mr.
European survey may
days to complete.
He is
is
take
announcement
tration were necessitated when the
broadened by Congress December^
28, 1945. Allowed 90 days to draft
involving
liabilities
sale failures numbered 3 with lia¬
bilities of $16,000
as against
2
trades
Hoover's
millions, of which the following
an
see
ized also.
by Agriculture Secretary Ander¬
danger
their localities and
that food
1,
amended, were completed on March 1 by the Veterans Administration.
They became effective immediately.
The new regulations, it is announced
by the Veterans Adminis¬
compared with 42 in
December,
This
a
in
women
Hoover dur¬
Press reported an
son
waste, save
consumption
and
voluntary program.
Your State and county food ad¬
ministrators should organize the
vices of March 2.
.On
be
I, according to
Washington ad¬
War
Associated
who
during
Mr.
was
World
ing
Davis,
Administrator
ans
All groups into which the re¬
port is divided show more fail¬
secure
substitutes.
as
883,000 in January
program
will eliminate
should
liabilities
New regulations
liberalizing the guaranty or insurance of veterloans under the Servicemen's
Readjustment Act of 1944, as
com¬
year ago,
number of
to
use,
is to prepare a
for housewives
step
unnecessary
make
use
of
accepted the honorary chairman¬
ship. Active head of the group is
Food
ing
ties is
fifth
simple
Committee, of which Mr. Hoover
a
same
to
trades
substitutes, and to
adherence
of
their
of
unnecessary
program.
At
January
the
were
involved
When
failures in January, accord¬
to Dun & Bradstreet, Inc.,
ness
urgent call
an
experts
waste,
devise
son.
is
after
of the Depart¬
of Agriculture, to work out
and methods of voluntary
ways
to
received
the
ment
to
Europe
liabilities
with
Regulations Liberalizing Veterans
Insurance Under Readjustment Act of 1948
arid
failures but less liabilities. Busi¬
acceptance of Mr.
in
in
New
January
totaled 80 and involved
$4,372,000
with
serious
areas
March
Agriculture
of
Tru-^
war-devastated
On
the
5
programs
The former Chief Executive
from
famine condition threatening the
world.
Secretary
in
number
amount
pared
American
in
them
Former President Herbert Hoover is to go to Europe, at the re¬
quest of President Truman, to survey food needs there and to see to
:
higher
r
,
extent
failures
Thursday, March 14, 1946
in
at
in
New
its
first
national
the Hotel
Commo¬
York
Carpenter is also
Board
Commerce
ation
of
of
and
New
on
a
March
Industry
York.
1.
member of
Directors
of
the
Associ¬
-
.Volume 163
Truman Pleads for
(Continued from page 1398)
tatorship, on the other hand, has
always
rejected
that principle.
Dictatorship, by whatever name,
is
founded
the
the
on
ing;
the
that
thing
is the only
and that men
State
that counts,
and
children
and
women
were
earth solely for the pur¬
pose of serving the State.
In that long struggle between
these two doctrines, the cause of
decency
and
righteousness has
been victorious. The right of every
human being to live in dignity
and freedom, the right to worship
his God in his own way, the right
to fix his own relationship to his
put
on
less
Sometimes it is the
fault of the boys and girls. More
often it is the result of everything
that is abnormal in war—includ¬
and
fathers
of
absence
the
ing
in
mothers in the armed forces or
business
not
were
gold
there
would
pressure
The
fight to preserve
these
rights was hard won. The victory
took
toll
a
treasure
it should
that
large
so
and
life
human
of
A
truly -religious fervor among
people would go a long way
toward obtaining a national health
program, a national housing pro¬
gram, a national education pro¬
gram, and an extended and im¬
proved social security program.
As
bring home to all of us forever,
precious, how invaluable, is
our liberty which we
had begun
to take for granted.
how
'
Now
that
religion,
live
by
a
and spiritual code
choosing, let us make
of that freedom.
Let us
own
our
full
right to
our
and
moral
decent
Of
preserved
conscience
of
freedom
"our
have
we
use
make
it
of
use
to
save
world
a
Which is beset by so many threats
of
conflicts,
new
terror and
new
destruction.
Forces of Selfishness and
Greed at Work
In
abroad
relations
our
and
decisions, for forthrightness,
hard
Smaller
taken
were
of
care
through the help of the Governernment in child-care centers. But
the case
this could not be done in
We
children.
older
of
now
are
paying the social penalty for fail¬
ing to provide adequate super¬
vision and guidance for many of
our children during their forma¬
tive years.
is
the
need
the
cause,
pressing
now
among
men,
so
na¬
among
.
counsel
and determination.
everything else they
thing, without which
of Decent Homes
the
of
one
homes.
by the provision of decent
courage
To
But
above
building during the years of the
war,
this country has embarked
on
the most ambitious
civilian
one
and
They call for
lost.
we are
a
spiritual, awakening
individual
the
life of
and
moral
in the
in the
housing
the lag in home
in our history.
program
possible resource of Gov¬
Every
councils of the world.
ernment will be used to
have pro¬
duced many awesome discoveries
in material things. But it has been
goal
The
five
last
said
truthfully
discoveries
the greatest
that
will be
spirit. There
the future
of
of the
realm
the
in
years
problem on this earth tough
enough to withstand the flame of
is
no
And
faith.
of
renewal
genuine
a
religious
of the problems
some
will yield to nothing less
than that kind of revival.
which man has
atomic energy
the gigantic power
through
acquired
matched
be
must
by
spiritual
strength of greater magnitude. All
mankind now stands in the door¬
to destruction—or upon the
threshold of the greatest age in
way
high moral code
can master this new power of the
universe and develop it for the
Only
history.
a
good.
common
the
When
and the scien¬
philosophers and the
have
all
exhausted
their
studies of atomic energy,
one
solution and only one solu¬
tion will remain—the substitution
the
tists,
statesmen,
and reason and broth¬
the
of decency
erhood for the rule of force in
the
Spiritual Awakening
and
men
nations would
but
the precepts of the an¬
cient prophets and the teachings
of
the Sermon
on
the Mount,
live
That
teachers
is
a
for you
of religious faith.
That
is
the
supreme
Church
earth.
to
great task
opportunity for the
fulfill
its
mission
on
The Protestant Church, the
Catholic Church,
and the Jewish
Synagogue—bound together in the
American unity of brotherhood—
provide the shock forces to
accomplish this moral and spirit¬
ual awakening.
No other agency
can do it.
Unless it is done, we
are
headed for the disaster we
must
Would deserve.
Oh for
an
of
people
our
to depend
life which
going
home
States
United
expects
support that Charter.
to
It expects
to defend that Charter.
It expects
expand and perfect that Char¬
And we are confident that
to
ter.
other United Nations
the
ex¬
the crisis of global
In
common
war
the
peoples of all the world
together in a great
became bound
It was dedicated to re¬
against aggression and
determination
to
overcome
the
fraternity.
tyrants and dictators who sought
to enslave.
The resources of all
the United Nations were pooled
into
one
Weapons,
fund of power.
power
of each were dedicated to
of all.
the common good
victory has come, that,
Now that
world there are now millions and
millions of
who
dren
men,
and chil¬
women
look
still
to
the
rich
keep themselves alive, help in the
form
of food and clothing, the
barest necessities of life. Of course,
that
is
why it is
throughout
churches
all
important
so
America
congregation of the
each
churches
and
synagogues
would
country
open
only four veterans, one
million veterans and their families
to
rooms
receive
could
until
new
shelter
temporary
houses are available.
Nothing could be more help¬
in reaching the goal of a de¬
for
American—
every
Americans of
all races and religions and of all
income groups — than the active
cooperation and inspiration of the
by that I mean
and
By work¬
churches of the nation.
in
ing
where
local
your
the
primary
communities,
and
job
re¬
help make
the success which it
sponsibility lie,
you can
reflects
the nation's life.
It must conform
to an ever-rising standard.
For home life
be.
To
that
raise
standard
should
constant aim of
your Government and the under¬
lying basis of its policies. It would
make the effort so much easier
be,
the
is,
and
would ap¬
of the principles of so¬
people and nations
if
ply
some
ethical standards
down to us from
Biblical times.
All the questions
which now beset us in strikes and
cial
justice and
which have
wages
come
so
cpnditions
working
and
would be
much simpler if men
and women were willing to
the principles
If
we
apply
of the Golden Rule.
really
believed
in
the
brotherhood of man, it would not
be
necessary
to
pass
a
Isaiah ployment practices act.
and
But we
cannot feed them all.
v/e
can
go a
your President, I appeal to
again—and to all Americans
everywhere—to prove your faith
and your belief in the teachings
of God by doing your share to
save the starving millions in Eu¬
rope and Asia and Africa.
Share
fair em¬
vent
food by eating less, and pre¬
millions
from
dying
of
upside, is a very strong deterrent to short-selling.
For individuals
having other income greater than $16,000, the taxing of short-sale
profits at regular rates will entail their paying more than the 25%.
a speculator in a tax bracket anywhere near 50% it is obviously
absurd to contribute so much of his uncertain winnings to the "tax
For
kitty."
And
others may have
that
of
bread.
In
short,
a
prove
crust
your¬
worthy of the liberty and
selves
dignity which you have preserved
on
this earth, by helping those
less
fortunate
who
have
been
starved
by
long
many
starve even
Ours
the
and
years
for so
who still
in liberation.
should
who made this
be
a
continuous
inspire
possible under God
to face our new
us
problems with resolution.
They
problems which will call for
the best in us.
As long as we re¬
main true to the spirit of these
men and women, to the religious
faith which carried them to vic¬
tory, we shall not fail.
are
""*
We have this
cause we are
and
tax on speculative gains, whose cashing is subject
action, must have the effect of freezing-stocks in the
having accrued profits—and the greater the profit
Washington informants state that Secretary
of the Treasury Vinson is about to follow the Eccles line in propos¬
hands
those
of
the greater the freeze.
ing that the capital gains tax be raised and the holding period lengthOn the other hand, Chairman Doughton of the House's all-
ened..
powerful Ways and Means Committee has expressed himself as ada¬
for no change from the present provisions.
For the sake of
mant
avoiding the much talked-about further "inflation" in the
that Mr. Doughton's way will prevail.
of
America not be¬
a
not "because
market,
it is to be hoped
:ji
#
*
*
important and beneficial repercussion from the So¬
viet's continuing imperialist monkey-shines—as highlighted by the
Churchill-Truman-Brynes-Vandenherg "appeasement-desist" pleas,
One
very
proposed financial aid to Brit¬
the Russian menace prompted
feeling from opposition to support of the proposed
financial agreement; but it has served to elevate the argument from
the fictitous "business deal" level.
It is hoped that in moving to a
realistic plane of discussion, namely, in weighing the political con-;
siderations in lieu of the balance sheet factors, it is hoped that the
is
the public's consideration of our
Not only has the realization of
on
ain.
a
shift in public
proponents will abandon these previous arguments:
(1) That the proposed loan is in the category of a
commercial;
particular faith,
our
ancestors
we should finance Great Britain to compete with us in
market.
,
That we should subsidize another customer (as Canada, is
(2) That
the export
(3)
doing with her loan) for our
domestic market, whose inflation is
ready causing us so much worry.
(4) That it will bring about free
'
al¬
\
multilateral trading.
That we should thus "bribe" England into joining Bretton
Woods—which had been represented as a means for helping rather
(5)
than
hurting her.
intensified
The
Soviet
imperialism
will
also
serve
to soften
previous strong objections of the loan's opponents to the effect
that by lending to Britain alone, and in seeking to insure repayment
from her, the United States will become inextricably allied with her
in all her political aims and disputes. This will now be true irrespec¬
tive of whether the transaction is put through on a business, in lieu
the
gift, basis.
of a
Revelation
dictators
thanksgiving for the fact of vic¬
tory and for the blessings which
are still with us in this land.
The
brave
men
arid valiant women
will
any
to freedom of
starvation. Reduce your abundance
so
premium of $1.
proposition.
long way.
As
your
four stocks loaned at a premium, now from
or
at a
you
ful
home
100%-margin rule went into effect only
12 to 14 issues
These include Sears Roebuck (with 23 mil¬
lion shares outstanding), General Motors (44 million shares), and
American Telephone (20 million shares).
Some Stock Exchange of¬
ficials feel that the only way the Loan Crowd can be kept going is
by further raising the premium rate, possibly by imposing a very
high initial premium which would be decreased during the renewal
period.
In any event, short-sellers would be further penalized, and
liquidity lessened.
;
*
.
• *
The tax laws, in several aspects, have a direct bearing on the
current
market thinness.
The barring of profits on short sales
from the 25%-maximum tax ceiling which applies to gains on the
three
are
But throughout the
has stopped.
250,000
in this
their spare
That
constantly tighter.
Whereas before, the
sistance
cooperate in the "na¬
tional share-the-home" effort.
If
nation has today.
our
by
problems which now seem so dif¬
ficult would soon disappear.
Support of UNO Charter
The
powerful nations of the world
for help.
Principally they look
to the people of the United States
for help.
Not help to fight an
enemy, nor help for luxuries and
extravagances—but just help to
on
must
If
of deep
influence
is
kind
religious
ships, food—the wealth and man¬
of
tomorrow
of
supplies, ammunition, equipment,
welfare
spiritual
of
this program
government of man.
Need for
next
the
can
rock
sound
our
reach
religious faith and ethical living
be more adequately felt than in
the homes of the nation.
The
cent
sages
the
within
of today
If the world is long to survive,
the
principles.
low-cost homes
two years.
No¬
of 2,700,000
where
have
laid the framework of the Charter
can
we
ways
help not only the youth of the
nation but all men and women is
for
call for
justice for tyranny and
the protection of the small
nations—by these prin¬
definite authorization from
are.free, excessrmargined, or held In-a margin account. The avail¬
ability of stock is also still being curtailed by the Securities Exchange
Act's provisions requiring reporting by corporate directors and con¬
trolling persons, which—whether justifiably or not—are discouraging
such individuals from supplying their own shares.
The cumulative
result of all these factors is that the Stock Loan crowd is getting
pect to do the same.
all
make up for
Rule 501.
and
Nations
accentuating the trouble already caused by Stock Exchange
This rule makes it necessary for a member firm to obtain a customer to lend his securities which
rule is
and weak
United
addi¬
-short-selling (along with the tax statutes and the
"up-tick" grading rule) by making more difficult the borrowing of
stocks.
In accentuating customers' propensity to take stocks out of
the market because of their being on a cash basis, the 100%-margin
freedoms, the substitution of rea¬
the
the market"
tional obstacle to
of religion.
The end of
aggression, the maintenance of
peace, the promotion of social jus¬
tice
and
indivdiual rights
and
ciples
testify, the elimination of credit privileges has
declines and selling on advances. It is proving an
in buying on
essence
son
and brokers
lessened speculators' professional attitude of "bucking
Charter of the United Nations the
war,
same
1936.
a
all
And
past
volume of 377 million shares in 1945 accompanied
price swing as did a 496 million share volume in
•
I
.
...
:
The newly-instituted
100% margin rule reduces liquidity in
several ways.
It obviously decreases volume.
Again, as investment
the
about
We" have tried to write into the
younger
Provision
'
Stock Exchange
unyielding.
and
generation of to¬
day yearns for moral uplift.
To
the parents
of the nation—and
to you of the churches of God—
has
come
the
responsibility of
helping them on to the right path.
The
"
on
Whatever
at
economy
resulted in unavoid¬
neglect of children.
children
in
home, forces of
selfishness and greed and intol¬
erance are again
at work.
They
create situations which call for
our
patriotic devotion to the national
able
' v'
~
our
We shall always be
interest has
yr<
of 30 representative common stocks shows that in
group
grateful to tions— nothing will do more to
the women of America, who have maintain the peace of the world
fellow men and to his Creator— performed
such an outstanding than the rigorous application of
•these have again been saved for service to our country during war. the principles of our ancient re¬
mankind.
In
some
cases,
however,
this ligion..
>
'''
(Continued from first page)
In price Volatility Is clearly demonstrated by a comparison of
and present activity in relation to', price swings.
An analysis
and lobbying to
induce the Congress to allow the
industries.
war
or
for
greedy
be
delinquency.
interests
''
*
of a
February,
1946, it took but23% of the1930-'31 Volume and 42% of the 193U
Last month's
price control act to expire, or to volume, to move stocks up in identical proportions.
keep down minimum wages, or market declines required only 11% of the volume which accompanied
to permit further concentration of the equivalent market swing in 1930-'31, and 37% of the same price
economic power.
change in 1936.
Considering the market as a whole, total New York
so
applies to all men and
women
everywhere, but it ap¬
plies particularly to. the youth
of today from whom the leader¬
ship of tomorrow will come. The
aftermath of a major war always
includes an increase of juvenile
ening
noth¬
to
awak¬
need for this moral
The
certain
If
Observations
4;
Interests Greedy for Gold
responsibilities!
world to its moral
that
doctrine
amounts
individual
Spiritual Revival
Saint Paul to reawaken a sick
or a
1403
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4472
of
latest figures
the
of Great
Britain's investment
100 pounds annually, is less than half of
1936-'38 rate, further enhances the "advisability of abandoning
repayment fantasy.
income, which at under
the
the J
from a particular foreign Redeem Water Works Bds.
V/e have our America be¬
Holders of twenty-year 5V2%
cause of our common aspiration to
sinking fund gold bonds due April
remain free and our determined
1, 1950, of Metropolitan Water,
sailed
port.*
to achieve for ourselves,
our
children, a more
and Drainage Board,
Wales, Australia, are
being notified that $101,000 prin¬
highest ideals.
cipal amount of these bonds have
Let us determine to carry on
been drawn by lot for redemption
in that same spirit—in a spirit of
through the sinking fund on April
tolerance and understanding for
1, 1946, at par. The bonds will be
all men and for all nations—in a redeemed at the principal office of
purpose
and
for
abundant life in keeping
spirit
unity.
of
religion
and
Sewerage
New South
with our
religious
:,m
im
O?
City Bank Farmers
pany,
nJ
•
Trust Com¬
22 William Street.
0
>«T:
THE COMMERCIAL & FINANCIAL
CHRONICLE
1404
/K'-i
Thursday, - March 14, 1946
-
i
m
-
i •
■
.?$■&:
.
bor
on
'■J:--:';}'.
■
;
'
*
-
-
t
auction
that it
assurance
will get
oeen
assurance
free to bargain for
increases under
estab¬
They want assurance bar¬
reasonable
the
lished.
Farmers
want
be
that
they
time
two
fair share of
main¬
in
our
know
that
we
in
the
afford
can
goods,
a
And
1945
F.
of Oct. 30, 1945 (10
13487), Executive
Order
of Feb. 14, 1946 (11 F. R.
SUB
PART
Section
pose
to
increases in wages and salaries
and their relationship
to prices
and rent
the
expect,
make
it
work.
Stabilization
Administration
5, 1945 (10 F. R. 14820).
They superseded all other regula¬
tions, directives or rulings of the
Economic
Stabilization
Director,
of
Stabilization
Adminis¬
or
That
the
means
trator, to the extent that they
same
consistent with them.
tackling the job in the
spirit in which we tackled
our war job. It means a
good deal
of give and take—and
perhaps a
little sacrifice.
It
means
a
Section
who
may
to
seem
have
increases.
little
Second,
which has
some
That
that
the
Price
on
H
with
3
9697
tools
means
been
Section
of
or
wage
Emergency
Control Act which expires
June 30 must be renewed
very
other
any
ac¬
these
of
"unapproved"
increase
means
wage
or
salary in¬
"approved" wage or
An
crease.
C
part
salary
or
in
provisions of
Executive
Order
An
soon and without any crippling
amendments.
It means that we
salary increase
or
retain
for
while
a
that the OPA, the
Wage
Stabilization Board and the Ci¬
vilian Production Administration
means
"unap¬
proved" increase is subject to the
conditions stated in Sub
part B
of these
regulations and may not
have
appropriated by the
the money needed to
this
carry
new
be
stabilization pro-
can
be
quickly and effi¬
I feel sure that Congress
counted
on
to
do
wage and
issued by the
Administration
on
Dec.
5, 1945 (10 F. R. 14820).
However, Order No. 1 under Sec¬
tion
4001.30 of these regulations
(10 F. R. 15026) and Order No. 2
Section 4001.30 of those
regulations (11 F. R. 1045) remain
in full force and effect.
As here¬
under
No Delay in Decisions
new
agenstabiliza-
after
must
streamline
their machinery even further
and
work even harder to
give business
men, farmers
and workers fair
.
the
case
I know this
which all Gov¬
The American
people are deter¬
to see that our
economy
works for all the
*
people* They
are determined that
this fight to
avert the
tragedy of inflation will
be won.
Upon the outcome of
this, fight
hangs, not only jthe
earnings
and
We
that
about
have the
there is
103: it.What
wage* and
regulations, the
of
such
an
except
pay¬
increase is
as
provided
not
in
the succeeding
paragraphs of this
section.
(B) Pending provision to the
contrary by the National Wage
Stabilization Board, a
come.
knowledge
nothing inevitable
between
salary increases are lawful.
(A) While the making of
any
wage or
salary' increase on or
after Feb. 14,
1946, is subject to
ment
our
it would be
regulations,
actions" taken
unlawful,
sure
inflation, for
these
the conditions stated in
Sub part
B of these
savings tomorrow, but also our
security and our economic and
social progress for
years to
of
Section
mined
our
in
Sept. 20, 1945, and Feb. 25, 1946.]
ernment leaders
agree.
of
used
term
"Economic Stabilization
Director" includes also the Sta¬
bilization
Administrator in the
and quick decisions.
is an objective on
value
supplementary
Stabilization
Finally, all Government
program
super¬
salary regulations
its part
needed appropriations.
involved in the
taken into consideration.
sede the
f in passing the Price Control
Act,
continuing subsidies and restoring
ifcuts 1 made recently in
vitally
| tion
so
[Note—These regulations
Hgram forward
ciently.
determining price
rent ceilings or costs
to the
United States in accordance with
the provisions of Sub
part D of
these
regulations.
An
longer
program of subsidies to keep
food prices from
soaring. And it
Congress
may be taken into
consideration in
our
must
wage
a
1
(D)
covered
or
salaryHincrease may not lawfully
be made with
respect to employes
j .n
.fa
I
loin
"
.
rates
of
by
stabilization
days
Nov.
such
War
25,
employes
Labor
1944,
with
increases
are
tion
be¬
provisions of General
1, issued by the Stabiliza¬
Administrator,
appropriate
approved
bilization
accordance with the applicable
requirements
of
the
National
days
departments
plants
may
without
such
in
be established
the
prior
costs
(F)
crease
sions
of
by amendment to
this section, define further classes
Section
first
salary stabil¬
to
or
United
in¬
States
unapproved
in¬
wage or
(other than an in¬
approved under the provi¬
of
these
regulations)
with¬
out the
prior approval of the ap¬
propriate wage or salary stabili¬
zation agency shall be deemed to
may,
of wage or salary increases which
will
be
unlawful
unless
made
with
the
prior < approval of the
ceilings
the
of
salary increase
existing
or paid
approval
wage or
is
creases.
Except as provided in
Section 201, the
making on or aft¬
er Feb.
14, 1946, of any
The Economic Stabilization
appropriate
increase
to
by institution
agency.
Director
the
increased
crease
appropriate
wage or salary stabilization agen¬
cy may by regulation or general
order provide, no new
wage or
salary rates for new plants or for
new
within
agency
after
seek
the
as
applica¬
salary sta¬
thirty
or
right to
Approval Essential
Except
wage
reflected in current payrolls.
Section 202. Waiver of
Wage Stabilization Board.
(E)
and
tion for approval is filed with the
into
put
the
the
Order
Board
unless,
after
within thirty
increase is first
agency
reflected in current payrolls; or
(B) The increase is made be¬
fore March 5, 1946, in accordance
by the Directive Order of
National
Section
using the increase
as a basis for
seeking an increase
in price ceilings or for
any other
of the purposes described in Sec¬
tion 202, and so states in a notice
describing the increase filed with
the appropriate
wage or salary
eliminating intra-plant inequities
in the basic steel
industry may
not
lawfully be made with re¬
the
in
202, if either:
The employer has no pres¬
(A)
Stabilization Board, wage or sal¬
ary increases for the purpose of
to
an
be
a
waiver, during the continua¬
tion
of
the
stabilization laws, of
right which the employer
might otherwise have to use such
any
increase in whole or in
part as a
basis for seeking or
obtaining an
increase in price or rent
ceilings
104.
List of
designated
for
or
resisting
otherwise jus-
an
wage or
itfiable reduction in price
cies.
ceilings
or
ucts
services
salary stabilization agen¬
(A) The following, for the
of these regulations, are
(in
the
rent
or
of
case
prod¬
purpose
designated wage and salary sta¬
bilization agencies:
(1) The National Wage Stabil¬
ization
Board, with respect to
wages and salaries as to which
under
contract
with
a
Federal
procurement agency) for increas¬
ing costs to the United States or
the
National
War
Labor
exercised jurisdiction
1945.
(2)
ternal
The
sioner
as
to
exercised
of
In¬
respect
the
to
commis¬
jurisdiction
on
Aug. 17, 1945.
(3) The Economic Stabilization
with respect to wages
Director,
and salaries
tional
is
as
Wage
precluded
to
which the Na¬
Stabilization
from
Board
exercising
au¬
thority by the Lea Amendment to
the Nationa'l War
Agencies Ap¬
propriation Act of 1946.
(Such
cases
will
Director
be
by
transmitted
the
to
the
Secretary
Agriculture.)
(4) The Secretary
of
of
Agricul¬
ture, with respect to wages and
salaries as to which the
Secretary
exercised jurisdiction on
Aug. 17,
1945.
(B) The provisions of these
reg¬
are
also
applicable, to
the extent
authorized by Executipe Order 9299 and Section 4
of
ulations
the
Stabilization Act
amended,
of
to
wages
employes who
of
1942,
and
are
the provisions of
the
bor Act.
as
salaries
subject
to
Railway La¬
Section 105.
Applications to
rent
have
the Price
been
ceilings
suspended
by
Administrator.
Section 106. Wage increases
re¬
quired by certain statutes. Noth¬
ing in these regulations shall be
construed to prohibit
conditions to
the
furnished
of a public
utility
carrier) for seeking
obtaining an increase in rates.
case
Section
203.
Unapproved
or
to attach
making of
excluded from
tion in
determining price
ceilings.
trator shall
eration
any
wage or salary increase required
by the provisions of the Fair La¬
not
in¬
considera¬
rent
or
take into consid¬
unapproved wage or
increases in
determining
is
presented
increase
an
or
any
salary
price or rent ceilings.
there
or
(A) The Price Adminis¬
in
Whenever
a basis for
as
approved wage
was
tor
paid,
shall
the
salary increase
or
Price
deduct
Administra¬
from
the
costs
as
shown in the statement the
amount of the increase in payroll
resulting
from
increase,
except
that
employer
the
shows
that
costs
the
the
unapproved
the
extent
to
affirmatively
increase in
attributable
proved increase
to
the
labor
unap¬
less than the
was
increase in payroll.
(B)
take
No seller
or
unapproved wage or
salary increase into consideration
any
in
determining his price
ceilings.
204.
creasing
States.
salary
a
costs
in¬
basis for
to
the
in¬
United
No
unapproved wage
increase shall be used
basis
the
as
for
United
increasing
States.
costs
No
OR SALARY
INCREASES
Section 301.
Wage or salary in¬
are approved with¬
application to wage or
salary stabilization agencies.
Ex¬
cept as provided in Section 103,
any wage or salary increase of a
which
creases
out further
kind
described
shall
be
Any
(A)
wage
specific approval
the
stabilization
or
as
14, 1946.
(B) Any wage or salary increase
at any time in accordance
with
governmental
a
a wage
controversy
nounced before Feb. 14, 1946.
(C) Any wage
or salary increase
on or after Feb.
14, 1946, by
employer who at the time the
increase
ployed
was
not
put into effect
a new con¬
into
take
of
than
more
eight
em¬
em¬
ployees: Provided, that unless ex¬
pressly extended by announce¬
ment of the appropriate
wage or
salary
stabilization
agency
this
exception shall not apply with re¬
whose wages,
spect to employees
hours
been
or
working conditions have
established
or negotiated on
industry, association, area, or
other similar basis by a master
contract or by similar or identical
contracts; and provided, further,
an
that the appropriate wage or sal¬
stabilization
ary
make
this
such
other
exception
to
necessary
agency
may
exclusions from
as
it
deem
may
the
out
carry
pur¬
poses of Executive Order 9697.
(D) Any wage or salary increase
made
after Feb. 14, 1946,
resulting from the institution of
a plan which
provides for (1) not
on
or
more
than
year,
or
night
six
(2)
such
extra
paid
holidays
extra
work,
payments
the
to
extent
payments do
per
for
that
not
ex¬
ceed five cents per hour for work
on
a
second
shift or ten cents
per
hour for work on a third
shift, or (3) paid vacations to em¬
ployees,. to the extent that such,
paid vacations do not exceed one
week
for any
employee having
completed one year or more of
employment with the employer
and two weeks for any
employe
having completed five or more
years
of employment with the
employer.
(E) Any wage or salary increase
made in accordance with the pro¬
visions of
order
regulation or general
by the appropriate
salary stabilization agen¬
a
issued
wage or
cy pursuant to Section 308 of
these
regulations.
Section 302.
creases
Wage
or
approvable only
salary in¬
on appli¬
cation to wage or salary stabiliza¬
tion
agency.
A wage or salary
increase which does not fall with¬
in
one
of the
classes listed in
Section 301 may be approved only
on
the
application to, and decision by,
appropriate wage or salary
stabilization agency.
Such an in¬
crease shall be
approved only if
the appropriate wage or
stabilization
agency
salary
finds that it
falls
one
more
within
classes of
cases
tions
to
303
to
or
the
of
described in Sec¬
307
which
and
it
only to the
is
found
ap¬
provable under the terms of those
sections.
Upon the determination
by the appropriate wage or salary
stabilization agency that a wage
salary increase is approvable
under the terms of the applicable
section,
the
increase
shall
be
deemed
to
be
approved
an
con¬
un¬
also
by
the Economic Stabilization Direc¬
tor.
Section 303. Increases consistent
approve a wage or
cost
an¬
made
an
purpose of
will
recommen¬
dation in
tern.
the
or salary
before Feb.
agency
agency shall agree
to terminate any contract for the
which
approved by
wage
made
to
procurement
tract
or
salary in¬
made
without
or
appropriate
with
sideration
section
be
to
lawfully
crease
Federal
negotiating
this
in
deemed
approved
purposes of these regula¬
for the
or
Unapproved
excluded
creases
rent
or
OF
C—APPROVAL
WAGE
extent
landlord may
fixed price contract.
a
PART
SUB
such
ceilings an
operating or financial statement
which
reflects, in whole or in
part,
the
results
of
operations
during a period in which an un¬
Section
sus¬
pended price or rent
ceilings. For
ithe purpose of these
regulations
the terms "price or
rent ceilings"
shall include
price or
which
(in the
being
creases
with
which
or
common
Aug. 17,
on
Commissioner
Revenue,
salaries
Board
into'
increase
tions:
price ceilings or for
the purposes de¬
of
ent intention of
provision to the
the National Wage
by
basis for seeking
a
in
other
scribed
Pending
contrary
as
increase
regulations or unless the
increase is permissible under the
terms of those regulations.
and
salary
approved
Sub
must
s;
and
the
of
regulations.
required
as
ization agency.
"Approved"
wage
As used in these
regu¬
cordance
need effective govto do
the job.
we
ernmental
are
lations, an "approved" wage or
salary increase means an increase
slight temporary advantage.
r
102.
"unapproved"
self-control over our own selfL interests; a little less
scrambling
to get ahead of the next
fellow
proved,
those
Dec.
on
work
First, every employer and every
and every farmer must
to
ceilings and costs to the
United States.
These regulations
supersede the supplementary wage
and salary regulations issued
by
worker
want
approved
effect, they have been
Purpose.
to
any
in
101.
(Aug. 18,
1945), Executive Order 9651 (Oct.
30,
1945)
and Executive Order
9697 (Feb. 14, 1946) with
respect
war.
to
been
wage
increase thereafter and using
the extent that it is ap¬
it,
unless
the
increase,
being put into effect, has
in Executive Order 9599
boom and collapse which
began just about this time after
right
A—GENERAL
the
lawful
fore
The pur¬
of these regulations is to
out the policies established
carry
trous
no
not
a
cy and
without prejudice to his
right of applying for approval of
the
riculture, a wage or salary in¬
subject to the wage or sal¬
ary
stabilization
regulations of
the Secretary of Agriculture is
dated
PROVISIONS
Sustained Prosperity Seen
have
hereby
are
to
crease
the
regulations
promulgated:
provision
contrary by the Secretary of Ag¬
following
sincerely that the new
wage-price policy is a practical
step toward a future of sustained
prosperity. I believe that we can
make the plan work to get all the
all-out production needed eventu¬
ally to lick inflation. In the mean¬
time, I believe that we can con¬
tinue holding the price and rent
line against the kind of disas¬
of
Pending
spect
I believe
We
and
(C)
1691) and Executive Order 9699 of
Feb. 25, 1946 (11 F. R. 1929), the
clothing, more homes
and the other things which we so
badly need today.
however, that this plan will
automatically.
Order 9599 of Aug. 18,
F. R. 10155), Executive
R.
9697
we
more
the last
to the
(10
Order 9651
durable
more
—
by
Order
Executive
we
are
ahead.
10
amended, and by Execu¬
9250 of Oct. 3, 1942
(7 F. R. 7871), Executive Order
9328 of April 8, 1943 (8 F. R.
4681),
entitled to
the rents and prices
not going to shoot up
months
March
as
tive
right to expect—at prices
a
we
how
issued
authority vested
by the Stabilization Act of
me
1942,
the
generations
matter
living,
pay are
have
for
national peace-
our
time prosperity.
All of us, no
make
have
may
in
Any employer may
or salary increase
without the prior approval of
any
wage or salary stabilization agen¬
make
requirements of
Wage Stabilization
the Wage Adjust¬
National
9697.
wage dr salary
consideration
in
unapproved
any
negotiating
Order
applicable
the
Board
before
Pursuant
tained at permanently high levels
so
first
has
Chester Bowles, Economic Stabil¬
ization Director:
that
assurance
their farm income will
H
the
or
Section 201. Exceptions to
prior
approval provisions of Executive
been approved in accordance with
the
Bowles'
regulations
gaining will be made speedily.
;
WalshDavis-Bacon
SUB PART B—UNAPPROVED
jurisdiction of the Wage Adjust¬
ment Board unless the
increase,
before being put into effect, has
months
The following is the text of the
supplementary wage and salary
wage
patterns clearly
wage
the
Supplemen¬
tary Wage Salary Regulations
that they are
f
the
WAGE OR SALARY INCREASES
ment Board.
of
Text
firm
in
after this emergency
long forgotten.
omy
money.
want
need
we
the
building and construction
industry who are subject to the
anead, and at the same time in¬
sure a safe, sound foundation for
a
healthy and prosperous econ¬
speedy decisions on wage
and
price adjustments where tney are
needed, and that it can move
ahead
without
fear
of
losing
Workers
in
With
Industry needs and is entitled
,
"4 to firm
|I|
Act,
Act.
—■_.Y....
i',H' seen.'1
,
Healey Act,
catastrophe of our own making.
the
right spirit and trie
right tools we can get the pro-
(Continued from first page)
way for
uie
greatest
nood of
goods tnis great nation has ever
f[0.
■■.'v
Standards
industry or local
The appropriate
salary
stabilization
area
pat¬
wage
or
shall
salary increase
agency
which it finds to be consistent
with the general pattern of wage
approved wage or salary increase.
or
So far
been established in the particular
as
practicable,
procurement
agency
Federal
shall take
no
salary adjustments which has
industry,
or
in the particular in-
■
1
'4:'-';
'
:
•44r*
r
4Volume
163
Number 4472
THE
it ->—■
dustry
related industries with¬
in the particular
local, labor mar¬
ket area,
during the period be¬
tween Aug. 18,
1945, and Feb. 14,
1946.
or
Section 304.
Increases to
The
appropriate wage
cor¬
:ake into account
any resulting in¬
in cost to the
firms which
have taken such action
but, where
he finds that such
firms consti¬
tute a large portion of
the indus¬
stabilization
Director, give ad¬
approval by regulation or
general order to other classes of
wage or
1946, the appropriate
Wage or salary stabilization
agency
shall approve a
try
309.
representing at
total output)
or salary in¬
creases appear
reasonably sure to
be made by a
large portion of the
remaining firms in the near fu¬
ture, he may also take into ac¬
Agreements
salary
for
wage
or
salary in¬
No wage or salary stabili¬
zation agency shall consider
increase which it finds is neces¬
sary to eliminate a gross
inequity
between wage rates or salaries in
upon
related
which
in
in
industries, related plants
the same industry or
locality,
application for approval
or
salary increase
an
of .any
act
or
count
wage
appears
whole
in
or
be
to
related job classifications in the
same
plant which would inter¬
fere with the effective
transition
to a peacetime
economy. In de¬
this section, consideration shall
be
given to the extent to which the
an
increase
which
is
as
result
a
of
the
increases.
finds that
wage
or
-
living"
which
it
agency
or
salary
shall
to
Jan.
1,
rates of
where
needed,
to
those
firms
which have put
approved wage or
salary increases into effect or have
made firm agreements to do so
price relief
salary
or
increase
in
■agency may approve any wage or
increase
which
it
finds
falls within one of the
standards
^salary
in effect
on
Aug. 17, 1945 (except
the standards
relating to '"rare
and unusual"
cases), under which
applications for wage or salary in¬
creases
were
Section
approved.
308.
Issuance
The appropriate
wage or salary
stabilization
agency
shall
have
authority by regulation or general
to designate
particular in¬
dustries, or particular industries
■order
related industries within a
par¬
ticular local labor market
area,
with respect to which it
finds that
or
a
general pattern of wage or sal¬
ary adjustments has been estab¬
lished, within the meaning of Sec¬
specified wage
salary level is necessary to
eliminate a
gross
inequity be¬
tween wage rates or
salaries in
related industries or in
related
plants in the same
a
industry
within
or
the
meaning of
304, and to provide that
salary increase con¬
forming to such regulation or gen¬
Section
any wage or
eral order shall
be deemed to
terms of
graph
a
regulation
issued
(A)
of
pursuant
this
or
to
general
Para¬
section
and
which is in excess of the
amount
approved by such regulations or
order
shall
be
approved under
any other provision of this
regu¬
lation, except Section 306 or Sec¬
tion 307, unless the
appropriate
wage
or
salary
stabilization
agency finds, with the approval of
the Economic
Stabilization Direc¬
tor, that because of special cir¬
be
any
statutory
ards
in
these
in
as
di¬
judgment
twelve
months
or
ceilings,
including
the
standards provided for in Section
2 of Executive
Order 9697.
Section 402.
Prohibition against
adjustment of price or rent ceil¬
ings before approved increase has
Except to the
or
agreed to
extent permitted in
Section 403, the Price Administra¬
shall not, in the absence of
tor
specific approval by the Economic
Stabilization
Director, authorize
any increase in price or rent ceil¬
ings or make any commitment to
authorize any such increase on the
basis of any increase in
wages or
salaries unless such
wage or
salary
increase has been put into effect
firm agreement exists to
put
it into effect.
However, in order
or
to
a
expedite adjustment of ceilings
after
been
approved
put
into
increases
have
effect,
the Price
Administrator may, while an ap¬
plication for approval of a
wage
or
salary increase is pending, re¬
ceive applications for
increased
ceilings based on the wage or sal¬
ary increase for which approval is
being sought.
Section 403.
creases
when
Industry price in¬
some
employers in
industry have not made wage or
salary increases. In taking action
in
accordance with the pricing
standards of Section 2 of Execu¬
tive Order
9697, or of any orders
arrive
the
of
salary
or
industry
In
for
or
basis of the
a
shall
to the effect
as
currently
be in hand
price or
required
Costs
on
Use of estimates
Administrator
regula¬
construed
increase
administrative stand¬
governing changes in price
rent
or
be
(B) No wage or salary increase
part there of which is made
by
an
employer who falls within the
order
Nothing
shall
rent ceilings which is not
under the provisions of an
applic¬
able maximum price or rent
regu¬
lation
or
under
the
applicable
approved.
or
sup¬
wage
tions
of
as
an
approvec
the
on
best data which may
obtainable from the
firm involved within
reasonably short period of time.
so doing, he shall
give due con¬
sideration
such
to
seasonal
non¬
recurring, temporary or otherwise
non-representative factors as may
be reflected in such data and also
to such relevant factors
he may
as
find have been operative since the
period covered by the data, or
be operative in the succeed¬
may
ing
twelve
cate
that
months,
the
which
actual
indi¬
of
cost
the
wage or salary increase is then, or
over
the
latter
period will
be,
higher or lower than the esti¬
mates of costs which would other¬
wise be derived from the data. In
appropriate
the Price Ad¬
ministrator shall provide for the
subsequent review of any adjust¬
cases,
ment in
ceilings put into effect in
light of actual experience dur¬
the
ing
representative period of op¬
erations
subsequent to the in¬
a
in
the United
products
Effect of approved
determining costs to
States.
In the
services
or
case
being
of
fur¬
ment
with respect to the earn¬
ings position, over the succeeding
twelve months, of an
industry in
which a part, but not
all, of the
firms have put
approved
wage
or
salary increases into effect
or
h>--
What
are
policy and the previous policy?
A.
The
brand
new
new
tation
of
policy
is
not
program but an
the old to fit
adap¬
bargaining within
the framework
stabilization program. Ex¬
cept in a few special situations, it
imposes no direct prohibitions on
of the
wage
salary increases. Like
the old, the new
policy puts limits
upon the extent to which
wage or
or
salary
increases
can
higher prices
be
reflected
higher costs
or
Government
contracts.
Such increases must be
approved
by the Government before
they
be used for these
purposes.
can
Differences
Wage Policy
on
wage-
priCe policy and the previous pol¬
icy?
a
itv»/4<ir»
r
standards for approval of
wage
salary
increases
were
or
relatively
limited.
These standards were not
intended to limit the amounts of
the increases which would actual¬
ly take place. On the contrary,
so-
called unapproved
increases, over
and above the standard for
ap¬
proval,
were
encouraged.
But
these unapproved
increases could
not
be
prices
reflected in higher
ceiling
right away. After a six-
month
test
period, however, OPA
directed
was
to
take
them
into
full account and to
give any price
relief
which
the
test
period
showed
called
was
tablished
for
under
Prices have been held
many
basis
same
affecting costs,
salary
increase
as
other
any
wage
which
is
industries,
however,
labor has suffered a severe loss in
take-home pay, as a result of loss
overtime,
downgrading
factors.
and
In some of these
that
no
which
crease
wage
or
salary in¬
made
was
on
or
before Feb. 13, 1946, and was un¬
approved on that date shall be a
basis
such
for
reimbursement
contract
a
unless
under
the
pro¬
ship. Nothing in these regula¬
tions, however, shall be construed
as
authorizing
increase
in
or
costs
requiring
to
the
States
the
which is not required by
applicable procurement con¬
tract.
■
Section 406.
rates
'
Increased costs to
,
.
for
approval, the new policy no
longer
encourages
unapproved
wage or
salary increases. Consid¬
eration
of
such
increases
is
barred, not merely for six months,
but for the duration of the
stabil¬
ization laws in
%\
determining either
pribe ceilings
or costs under
ernment contracts.
:
•<
■
Gov¬
■
•
w
,
Wage or salary increases which
are going to be used in
applying
for price relief
increasing
ment,
immediately,
costs
must
be
to
the
|
or for
Governin ad*V*
T-
V
vance.
Q.
Will the new policy
require
prices to be increased
wherever
wage rates have gone
A.
Far from
rates do not
it.
up?
'
^
Higher
wage
4
,
necessarily mean pro¬
portionately higher labor costs.
Loss of
overtime, downgrading,
improved
labor
force
and
factors, offset the effect
rates
part.
■
•
an
other
of
;
higher
labor costs in whole
on
or m
,
"•
"fl
Q.
What does the new
wageprice policy mean to the
average
American family which is so conA.'
First
**
/-•
i
living?
of
all, it means thai
expect to get larger
supplies of refrigerators,
washing
consumers can
machines, automobiles
and all the
other peacetime goods we're all
waiting for. Secondly, it will not
mean a new
higher level of prices.
More than two thirds of the
avei-
age family's expenditures
go for
food, rent and clothing. The new
wage-price policy should have
effect
on
effect
rents
and
little
or
no
no-
44:
food and
on
clothing. Spe¬
cial steps are
being taken to in¬
crease
production of low-priced
clothing and thus to reduce the
average
family's clothing bill.
Prices for
Such
the
increase
increases mean
price-line.
no
'
,y,"
-
;
somewhat;.
a
bulge
in.'
But there will be
break-through.
What
does
price program
age
A.
of
the
mean
new
to the
wageaver¬
employer?
It means quicker
settlement
wage
problems.
It
means
prompt price relief where hardexists
under
fair-pricing
standards. It means that the
wayis cleared for all-out
production. • •
Q. What does the new wageprice policy mean to the
:
average
worker?
A.
*
It
that
means
fair wage and
salary
barriers
/■
in
adjustments,
j
that
;
the
worker
is
protected %
runaway cost of living J
which would destroy the benefits
a
the United States,ib/be limited to
of the adjustments.
'/
employers who have -/ instituted
|f 8j
Q.
What does the new
wage or salary increases. To the
wager /,.
fullest practicable extent! Federal price policy mean to the average
farmer?
procurement agencies shall pro¬
\;ISjfflt®
vide that no employer shall be
A.
It means an increased flow
eligible for the benefits of any of machinery, tools and other 1
increase
in
payments f by
the peacetime goods he needs to rum
.,
.
;
United
proved
States based upon an ap¬
wage
or
salary
increase
his farm.
there
even
will
And it is unlikely that
be any real increase
in
the prices of the farm
put into effect such equipment he buys. It means that
salary increase. E. Q, [the, declining income which many
9250; E.O'. 9328, 3 CFR. [Cupn,;J?.f?ii (farthers expected after V-J
Day
1213, 1267; E. O. 9599 (10 FmRv will
not materialize because
of
10155);
E. O. 9620
(10 Fv dW
the wartime
12033); E. O. 9651
(10
purchasing poWer of
F.
R.
13487); E. O. 9697 (11 F. R. 1691) many industrial workers wH be
except to the extent to which he
himself
wage
has
or
,
.
..
.
and E. O. 9699
(11 F. R. 1929).
c/f I
'
metal goods will
some
undoubtedly
against
Mju,
«&|
-
approved
which
...
any
United
the standards
through collective bargaining or
to giye labor at, otherwise, are removed. It means
wage
—
proved under the provisions of
these regulations.
Provided, how¬
ever,
in
necessary
least partial compensation for this
ap¬
Having liberalized
ship
were
the
on
,
the date of the order.
Q.
wage agreements have been con¬
cluded in orderly fashion under
this policy.
in line.
increases
ly been established in the various
industries and localities
during
the period between V-J
Day and
es¬
policy worked well in the
majority of cases. Thousands of
similar
standard consists of the
patterns
of adjustment which have
actual¬
pricing standards.
This
of
standards for approval of
wage
and salary increases. The basic
cerned about the .cost of
Q.
What are the principal dif¬
ferences between the new
tion,
factors
or
a
present
conditions. The new
policy, like
the old, calls for free
collective
industries, employers could not
absorb, even for a test period, the
curement
agency
administering
the contract finds that reimburse¬
judg¬
of \essential
nished under contract with a Fed¬
eral
procurement
agency,
such
agency may take into considera¬
ment is necessary to
prevent hard¬
trator may find it
necessary from
time to time to arrive at a
or
the basic similari¬
ties between the new
wage-price
In
Section 405.
suant
thereto, the Price Adminis¬
Q.
crease.
increases
hardship
goods.
costs
on
directives issued by the Econ¬
omic Stabilization Director
pur¬
or
necessary to relieve
increase production
or
or
with
negotia¬
tions, or recommended by the
Government, since V-J Day. And,
second, prompt adjustments'' in
price ceilings wherever they are
at
succeeding
increase
the, opportunity to obtain
wage
adjustments in line
those worked out in free
under
to effect of approved
wage or sal¬
ary increases on costs.
The Price
omy.
recting
Effect
oil
Section 404.
action
transition
(B)
granting
on a
Estimates
to interfere with the effective
to
a
peacetime econ¬
ens
the
in produc¬
The order provides:
First, a
basis for reasonable
wage settle¬
ment in all cases.
Labor is as¬
in
made, except where,
a
facilitate
salary action
ply emergency with respect to the
commodity involved which threat¬
or
locality,
was
judgment, different
been put into effect
of
gen¬
eral pattern and other
orders, (a)
tion 303, or that
his
is required in order to end
to
like basis to those
other firms which
may thereafter
take such wage or
part of any such increase—that
is,
cor¬
stabilization
and
any part paid on account of work
done prior to the date when
the
The
appropriate wage or salary stabil¬
ization agency shall
approve
a
wage
ceiling prices,
Price Administrator shall exclude
from consideration
any retroactive
section this
percentage increase in
the cost of living shall be
deemed
to be 33%.
Section 307.
Increases falling
within standards in effect
prior to
-Aug. 18, 1945.
The appropriate
the
however, the
living be¬
tween
January, 1941, and Septem¬
ber, 1945. For the purposes of this
wage or salary increase which it
finds is necessary to correct
substandards of living.
of
and
purposes
of Ex¬
Order 9697, any wage or
salary increase which is approved
under the provision of these
regu¬
lations. In so doing,
1941, in wage or salary
employees in the appropri¬
306.
Increases to
substandards of living.
account
by authorizing individual adjust¬
ments, or by prescribing increase
factors)
to
accord
price relief,
con¬
provisions
a
Section
lishing two levels
ecutive
ate unit equal the
percentage in¬
creases in the cost of
rect
present
or salary increases as
thereafter be made and
ap¬
proved, but he may make what¬
ever provision
appears to him just
and practicable (e.
g., by estab¬
determining price or
(A) In determining
rent ceilings, the Price
with
into
such wage
Effect of approved
consistently
Stabilization Di¬
may
ceilings.
sideration,
finds
is
make
ceilings is
price or
Administrator shall take into
ap¬
increase
peacetime economy and
further
necessary
to
the average increase since
which
finding required
by the preceding sentence, he
may
not, without the express approval
in¬
increases in
rent
necessary to cor¬
rect a maladjustment which
would
interfere with the effective transi¬
tion
an
of the Economic
Section 401.
Aug. 18, 1945, and Feb. 14,
1946, the appropriate wage or sal¬
wage
rent
PART D—EFFECT OF AP¬
PROVED WAGE OR SALARY
INCREASES
applicable pattern of
salary adjustments was
tween
a
whether
or
cannot make the
full-speed-ahead
tion.
sured
approved wage or salary increases
and additional firms
are reason¬
ably certain to do so, but where he
SUB
In any case in which it
•established during the period be¬
prove
to
portion
rector, take
no
ary stabilization
as
price
for
in ap
industry have
taken such action with
respect to
required.
transition to a peacetime
economy.
Section 305.
"Cost
of
-
in
crease
promote
of the firms
until a
determination has been
made by the Office of Price Ad¬
ministration
—
of the
economy in the present
emergency" and to clear the decks
effective
price
administration. Where the Price
Administrator finds that a
termining whether there exists a conditioned upon approval by the
gross inequity between related in¬ appropriate wage or salary stabili¬
zation agency nor of an
increase
dustries, within the meaning of
take-home pay of' the
employees
in the
respective industries has
Q. What is the purpose of the^———
«—
wage-price policy announced \ reduction in
earnings and to off*
by President Truman on Feb. 14 set
the increases in the cost of
'in Executive Order
No. 9697?
;-r ■' ^ 1 living since before the war.
A.
To maintain the
The new policy liberalizes the
"stability
new
would
which is not to be put into effect
of
increase in cost which
likely to result from
Wage-Price Policy
way of answering some general
questions incident to the
revised wage-price policy announced
by President Truman on Feb;
14, text of which appeared in Section 2 of
the "Chronicle" of Feb.
21,
Economic Stabilizer Bowles issued the
following question and answer
statement on March 10:
future
wage
increases,
when, in his judgment, to do so
granting of an increase in price or
rent ceilings. This
provision, how¬
ever, shall not be a bar to consid¬
eration
the
On Revised
By
those
the
upon
the
like wage
he believes
conditioned
part
one-half
and that
conditional
creases.
(ordinarily
least
salary increases.
Section
and Answers
crease
Stabilization
was established
during
the period between
Aug. 18, 1945,
reduced
& FIN-
i
vance
and Feb. 14,
been
•
.
Price Administrator
authorized to
;
*
or
agency may,
with the approval of the
Economic
justments
or
...
COMMERCIAL
.
(C)
salary
inequities.
In any case
in which it finds that
no applica¬
ble pattern of wage or
salary ad¬
or
.
.
cumstances such approval is
lave made fiim
agreements to do
essary to effectuate the purposes;
so.. In such a
case, not only is the
of Executive Order 9697.
rect gross
wage
...
'
'
■
.
ftiSillteiiiii:
■
-
4,4
(Continued
on
page
1406)
,
THE COMMERCIAL &
Thursday, March 14, 1946
FINANCIAL CHRONICLE
1406
Questions and Answers
On Revised Wage-Price Policy
Official
(Continued from page 1405)
at least
partially restored
increases in wage
1
through
rates.
Will the new wage-price
policy tie business men and labor
unions up in red tape and delay?
/.
1
Q.
Emphatically no. The Government is obligated to give both
groups the fastest possible action.
The new wage-price program con¬
tains new provisions for stream¬
lining procedures to the limit.
■
the increase
priate wage or salary
"
;
**
increases
increase is lawful without
specific
separate applica¬
to be filed
a
payrolls.
If the employer files such a no¬
tice, he can ask for approval of
the increase at any
later time. Ap¬
proval will be given or withheld
on the same basis as if it had been
the increase
do
employer makes an unap¬
;r
The Director of
Economic Stab-
ilization will direct and
■
"QUESTIONS
ANSWERS
AND
Otherwise, widespread wage set¬
tlements might be made in excess
of
the
standards for
approval
without awareness.
This would
create the dilemma of either im¬
posing severe and often intoler¬
able hardship upon employers in
policies.
1 ate the over-all
:
coordin-
Q.
How does OPA determine
whether an employer is reason¬
'
Q.'Can an employer lawfully
a wage or salary
increase
make
without
proval?
getting
Government ap¬
;- '
Yes.
A.
Under the new Execu¬
so-called unapproved
wage or salary increases are still
lawful, with certain exceptions,
£ just as they were before. How¬
ever,
wage
or
salary increases
must be approved before they can
be used as a basis for securing an
tive Order,
increase in
price
rent ceilings
for increasing
or
utility rates or
or
the United States under
% Government contracts. Unless ap¬
proved, such increases cannot, for
; costs to
duration
the
of
the
stabilization
laws, be considered for such pur¬
poses.
Q. Are there exceptions to the
general
rule
that unapproved
wage or salary increases are not
crease?
Yes.
the same
of cost increases or other
developments
which
decrease
earnings. These standards are gen¬
erally
applied on an industry
basis.
However, the regulations
covering
Q.
:
wage
May an employer make a
or salary increase and then
f apply for approval
s/ward? j
A.-. In
s
yes.
of
two
of it after¬
classes
of
cases,
In others, no. The first class
is one established by an
cases
earlier order of the Stabilization
Administrator.
.
■%
a
-.
For
an
new
second
regulations provide for
class
gives advance approval to
and salary in¬
creases: (1) any increase lawfully
made before the date of the order
Order
14,
(Feb.
1946)
and
made
at
with
any
National Wage
Stabilization Board
and the salary stabilization unit in
the Treasury Department will give
rulings, upon request, on ques¬
tions as to whether a particular
increase under their jurisdiction
falls within
one
of these classes.
of
cases
a wage or
in which
and
secure
If
its objective of
What additional classes of
wage or salary increases are given
advance
approval by
the new
wage-price regulations?
can
that
is welcome but
do their best to clear
A.
(1) Increases made by em¬
ployers who employ no more than
eight employes, unless wages for
A.
No. However, pending ap¬
such employes have in the past
proval of a wage increase for
been determined by a master con¬
which application has been made,
tract, or by similar or identical an
employer or his industry can
contracts, on an industry or areapresent the facts to OPA, and OPA
wide basis, or unless the National
can then take steps to expedite
Wage Stabilization Board provides
action on the application as soon
for specific approval in the partic¬
as the wage increase has been ap¬
ular type of case; (2) Increases
proved.
providing. |or a maximum of six
Q.
If an employer has made
paid holidays a year; (3) Increases
providing for nightshift differen¬ an approved wage increase or has
tials not exceeding 5 cents for a applied to a wage stabilization
second shift or 10 cents for a third
agency for approval, how should
shift; (4) Increases providing for he apply for a price increase?
for
try
which
OPA
an
indus¬
industry
advisory committee has been or¬
ganized—and most industries have
them—he
the
to
tee.
should
attention
The
bring
of that
committee
his
case
commit¬
will
then
consult with OPA if there appears
to be ground for an industry-wide
price increase.
Q.
do
What
who
not
an
employer
belong
to
an
Yet
promptly.
applications
burden
the
on
them will be tremendous and de¬
lays can be harassing and destruc¬
tive.
The OPA will give no prior
assurances
of price relief to manu¬
considering wage in¬
creases, which is an obstacle to
settlement of strikes.
facturers
the formu¬
rigid, and the
In the second place,
las of the OPA are
public statements of its officials
indicate that its dominant policy
is to "hold the line".
The defini¬
tion
of
"hardship cases" is a
severe one.
An industry is con¬
sidered to be in hardship only if,
after wage increases, ceiling prices
leave its earnings insufficient in
against these uncertainties, it
be noted that OPA has
yielded
the necessities of the
by granting a $5
to
situation
steel
prices. It is
ceilings on
ton increase in
establishing
higher
per
goods which partially offset
the rise in raw cotton and other
cotton
it
cases
to
have
will
see
no
choice but
higher prices or
production restricted.
in
acquiesce
Regional Conference
Of Ifltge. Bankers Assn.
The
Mortgage Bankers Associ¬
America announced at
of
ation
Chicago on March 11 that its 33rd
annual convention will be held at
the
Netherland
Plaza
hotel
in
2-4 and that it
will
sponsor a
special regional
conference this Spring, the pro¬
Oct.
Cincinnati,
gram
for
which will be largely
the part the
devoted to reviewing
mortgage lender will play in the
judgment of the Price Admin¬ national
housing program.
The
yield during the next
conference will be at the Waldorftwelve months an average rate of
Astoria hotel in New York, April
return on net worth equal to that
29 and 30 with the New Jersey
earned in 1936-39. This allowable
Mortgage Bankers Association as
return is calculated before taxes,
cooperating
sponsor.
John
C.
although the corporate tax rate in
Thompson,
a
member of
the
1946 is 38% against only 17% on
the
istrator to
the
average
main
OPA
in 1936-39.
In the
will deal with price
questions with each industry as a
whole; it will not give individual
company cases
the
combination of rigid and
formulas, the declared
of Gover¬
of the clinic
and
conference committee, will
direct the meeting.
The
Association's
educational
Association's
nors
in¬
and
program
be
'
In this
severe
priority whenever
be fol¬
method can
overall
lowed.
Board
chairman
inaugurated in 1945 will
with
expanded
continued
courses
this spring
University
at New York
for mortgage lenders
line, and pos¬ on urban real estate and another
of OPA's staff, at Purdue University for farm
difficulties and
uncertainties ahead. The provision mortgage lenders.
'
u
tention to hold the
sible
should
does
As
should
procedures costs, and it is raising meat prices
to help the packers pay the higher
to give pre-approval and blanket
approval to wage increases, and wages recommended by the fact¬
board.
In many other
both agencies may be expected to finding
be done by
an
The
will
have to bear the risks.
Wage Board has set up
achieve
he belongs to
volume,
decisions, manufacturers
the
Each ap¬
Administration.
Price
sales
of
prices and productive
efficiency will enter into the OPA
decisions.
But while OPA makes
have to be, first,
approved as to the wage increase
by the Wage Stabilization Board
and, second, acted on by the Office
of
estimates
materials
will
plication
the answer to the
question be different if the
employer had agreed to a particu¬
lar wage increase, but had
not
yet secured approval of it?
If
manufacturers are
Their first
price relief applications.
Would
A.
months shall be controlling means
thought is that the flood of wage
increases will lead to a flood of
above
paid vacations of no more than
one week after one year of em¬
agency's judgment as to
over the next twelve
conditions
reassured.
from
far
negotiations.
Q.
of the National
analysis of the new wage-price policy
adjustments by individual
which will "swamp the
OPA".
Commenting on this, the
"Letter" states that the new order
prompt and fair price adjustments,
OPA must not become entanged in
wage
increase.
an
the "Monthly Bank Letter"
firms,
AND
to
employers
incurred as a result
Wage-Price Policy
price
speeding produc¬
tion wherever this
Q.
is
for any costs
that the
approval of it?
OPA
The procurement agen¬
No.
practical difficulties of apply¬
ing it in actual practice and pre¬
dicts a wave of applications for
Relief
No.
A.
cies will not reimburse
the
OPA advise an em¬
ployer who is engaged in wage
negotiations what price increase
he might be
entitled to if he
should make a certain wage in¬
A.
made
after Feb. 14, 1946?
Administration, points out^-
of the
May
crease
unapproved
increases
salary
or
of such
The March issue of
Employers' Application for Price
Q.
of
account
take
wage
commodities also
City Bank of New York, in an
ADJUSTMENTS
a
Will the procurement agen¬
Q.
cies
Publication Predicts OPA Will Be Swamped
With Price Relief Applications and That Adherence to a Rigid
Formula "to Hold the Line" Will Result in Inequities and Lead
to Manufacturers Bearing the Risks.
ANSWERS ON PRICE
(2) any in¬
time in ac¬
governmental
recommendation
announced be¬
fore the date of the order.
The
crease
cordance
will, exclude the costs at¬
National City Bank
two classes of wage
QUESTIONS
many
Sees Difficulties in
Wage Stabilization Board on a
case-by-case basis.
SOME
Otherwise the
employer.
agency
ments.
al
salary in¬ ployment and two weeks after
be sought after it has five years of employment; (5) in
been made. An employer need not addition, the regulations author¬
secure prior approval of a wage
ize the wage or salary stabiliza¬
or salary increase if he
has no tion agencies to issue pattern or¬
present intention of using it as ders, or other general orders,
a basis for seeking an increase in
which will give advance approval
price or rent ceilings or utility to *"a ■ much larger number of in¬
rates or for increasing costs under
creases.
Several such pattern or¬
a Government
contract, and if he ders have already been issued by
the^ National Wage Stabilization
«so states in a notice, describing
approval of
crease may
/
interim
period, until March 15, 1946, an
employer may make an unap¬
proved wage or salary increase
without waiving the right to seek
approval afterward.
He must,
however, apply for such approval
within 30 days after the increase
is first reflected in ciirrent payThe
Executive
the
to
authorize individual seller adjust¬
hourly earnings in the appropri¬
ate unit since Jan. 1, 1941, had
fallen short of 33%. The new Ex¬
Approved Rises to Fore
These exceptions are
as those which existed
before the new Executive Order.
r
President's
The
Only
tributable to the increase.
has developed stand¬
determine when prices
be increased as a conse¬
quence
straight-time
in average
is
to
must
proved only to the extent that the
increase
if the procurement
finds that reimbursement
necessary to prevent hardship
A.
OPA
A.
ards
the
A.
increase without a price in¬
wage
ap¬
were
approved
able to absorb an
ably
ecutive Order provides for ap¬
permitting a break
wage-price policy which proval of increases in basic wage
or salary rates if hourly rates in the
would upset the stabilization pro¬
appropriate unit have not risep
gram.
33% since Jan. 1, 1941. The ap¬
Q.
What classes of wage or sal¬
plication of this standard in the
ary increases are given advance
case
of employes on other than
approval by the President's Exec¬
hourly rates, such as piecework,
utive Order itself?
will be worked out by the Nation¬
in
unlawful?
A.
increases
Order
unapproved
agency
Execu¬
Under the previous
A.
remained
and
1946,
were made
before Feb, 14,
before that date?
cost-of-living standard in the pre¬
vious Executive Order?
tive
without approval
setting the inflationary
cost-price spiral in motion.
many cases, or
WAGES UNDER
THE NEW POLICY <
ABOUT
•
it is im¬
portant that any such agreement
should be made with open eyes.
which
increases
ary
to
thereby
*
into
factor
cies take account of wage or salr
a
increases,
further
of
succession
'
sorb additional increases,
would lead
increase
price
other cost
Will the procurement agen¬
Q.
Without such cost
impossible, since every
would be
>
certain cases.
any
absorption, effective price control
in price or rent ceilings
utility rates or for increasing
costs to the United States under
wage-price policy? proved wage or salary increase on
a
Government contract.
5 A. The same agencies which or after March 15, 1946, and fails
to file such a notice, he will be
i have been administering the pre¬
"Pattern" Not Yet Established
vious policy. The National Wage deemed to have waived any right
Stabilization
Board
will
pass to use the increase as a basis for
Q.
Does
the
new
"pattern"
finally on all applications for seeking price increases, or for any standard mean that any wage in¬
other
purposes
stated crease up to 18*4 cents an hour, or
approval of wage increases, ex¬ of the
some similar figure, will be ap¬
cept those involving agricultural above.
labor and so-called Lea Amend¬
Q.
If an employer makes a proved?
ment cases. The Board acts also wage or salary increase without
A.
No, the Executive Order
on
increases for certain salaried prior approval and gives notice
does not proceed upon the basis
employes receiving $5,000 per an¬ that he has no present intention that any nation-wide pattern of
num or less.
of using it as a basis for seeking a
wage or salary increases has been
The salary stabilization unit in price increase, may he apply for established by recent wage settle¬
a price increase later?
the Treasury Department will pass
ments.
The
patterns which it
A.
Yes.
He must, of course, recognizes are patterns for par¬
finally on all applications for approval of salaryy increases other first secure approval of the wage ticular industries, or for related
r than
salary increases under the increase. OPA will then consider industries within a particular la¬
jurisdiction of the National Wage his application for price relief, if bor-market area. These patterns
Stabilization Board. The Depart- he shows a reasonable ground for vary from industry to industry
ment of Agriculture will continue the change in his original inten¬ and from
locality to locality.
to administer wage controls ap¬ tion.
While employers are not
Q.
How does the new cost-ofplying to agricultural labor.
prohibited from agreeing to ab¬ living standard differ from the
Administra¬
price fea¬
tures of the new policy, with the
approval of the Secretary of Ag¬
riculture as required by law in
take
account.
without assuming an unrea¬
so
procure¬
agency concerned
on the
basis that the agency would
ment
of their capacity to
sonable burden.
use
the
by
consideration
same
increases
retailers to absorb cost
to the extent
Yes, if the employer wishes
it as a basis for seeking an
or
ister the new
The Office of Price
price increase what¬
has always expected
wholesalers and
no
OPA
manufacturers,
increase
an
ployer furnishing goods or serv¬
ices
under
contract
with the
United States will be taken into
will
was
before
sought
tion will administer the
employers
Many
to
made.
If
require
ever.
proval?
A.
No.
A.
Feb.
approved
him that he
price increase?
will secure a
the
with
made on or after
14, 1946, (the date of the new
Executive
Order), by
an
em¬
salary increases
an
increase assure
wage
appropriate agency for
every wage or salary increase not
falling within one of the classes
which has been given advance ap¬
rent
made
has
Any approved wage or
Yes.
A.
ployer
Will
14, 1948?
industry
his
Does the fact that an em¬
Q.
approval.
Q.
which
makes.
which no
other classes of cases in
■»
Will Federal procurement
take account of approved wage er
salary increases made after Feb.
Q.
write to OPA di¬
may
products
and
industry
construction
and
Contracts
rectly, requesting consideration of
an increase in the ceilings of the
approvals do not
in the building
tion for approval have
admin¬
What agencies will
Q.
stabilization
within 30 days after the
first reflected in cur¬
agency
These blanket
increase is
A.
,
filed with the appro¬
He
A.
sible.
Government
Questions About
industry
an
advisory committee?
parable orders as rapidly as pos¬
cover
which has
industry
The Board will issue com¬
Board.
swamping
manufacturers see
Volume 163
.Number 4472
THE. COMMERCIAL &
FINANCIAL CHRONICLE
■•'4.
1407
Electric Output for Week Ended March 9,1946
11.1% BelowThaf for Same Week a Year Ago
' The
a
Edison Electric
Institute, in its current weekly report, esti¬
production of electricity by the electric light and
power industry of the United States for the week
ended March 9,
1946, was 3,952,539,000 kwh., which compares with
4,446,136,000 kwh.
in the
corresponding week a year ago, and 4,000,119,000 kwh. in the
mated
that
the
week ended March
1946
2, 1946.
The output for the week ended March 9,
11.1% below that of the
was
week in 1945.
same
PERCENTAGE DECREASE UNDER SAME WEEK LAST
YEAR
Week Ended
Major Geographical Divisions—
New
March 9
England
5.1
Middle Atlantic
Central
West
Central
3.4
12,7
§2.0
§4.7
receipts were lower and
prices
advanced.
Cattle
were
strong with supply showing no
improvement. Sales of cash lard
13.1
10.0
9.2
10.6
12.3
11.7
8
Dec.
1945
1
Dec.
15
Dec.
22
Dec.
4,154,061
29
4,239,376
3,758,942
4,560,158
4,566,905
1,518,922
1,806,225
9.7
1,563,384
9.0
4,612,994
1,554,473
8.2
4,295,010
4,337,237
1,414,710
1,840,863
1,860,021
1,637,683
1,619,265
1,542,000
—
—11.0
1946
1945
% Change
under 1945
3,865,362
4,427,281
—12.7
4,163,206
4,614,334
Week Ended—
Jan.
1943
—10.6
4,225,814
5'
Jan. 12—
Jan. 19
Jan. 26=.
1944
1932
1929
9.8
9.7
4,531,662
1,598,201
1,588,967
4,523,763
1,588,853
1,728,208
—12.2
4,524,134
1,578,817
1,726,161
—11.6
4.532,730
4,511,562
1,545,459
1,718,304
1,512,158
1,699,250
4,588,214
4,576,713
2
3,982,775
4,538,552
Feb.
9
3,983,493
4,505,269
3,948,620
4,472,298
—11.7
Feb. 23
1929
—11.9
4,145,116
4,034,365
Feb.
Feb. 16
1932
4,567,959
4,539,083
—
—
1,602,482
1,733,810
1,736,721
1,717,315
3,922,796
4,473,962
—12.3
March
2
4,444,939
1.519,679
1,706,719
4,000,119
4,472,110
—'10.6
March
9
4,464,686
1,538,452
1,702,570
3,952,539
4,446,136
—11.1
1,537,747
1,687,229
4,397,529
4,425,630
4,400,246
4,401,716
4,409,159
1,514,553
1,480,208
1,683,262
1,679,589
4,329,478
4,408,703
1,465,076
over
develop¬
Washington and in in¬
bought on gen¬
eral liquidation and
selling which
depressed prices. Recovery came
March 23
March 30
in
with the
announcement of
ther rise in the
fur¬
a
parity price of cot¬
ton, expectations of larger exports
of cotton to Japan and the antici¬
pation of upward revisions in tex¬
tile price ceilings.
Sales in spot
markets
were
seasonally high last
although below the previous
week; demand was active and
prices
irregular.
Gray
cotton
goods markets remained in a gen¬
week
1,633,291
March 16
uncertainty
dustrial relations
under 1944
—
the
were
ments
1944
—
erally withdrawn position
ing official announcement
pend¬
of
ex¬
pected ceiling increases.
The
Commodity Credit Corpor¬
ation announced
a general reduc¬
in domestic wool
prices last
week.
Sales of domestic
tion
The State of Trade
wools
(Continued from page 1399)
Institute announced
Monday of
operating rate of
steel companies
having 94% of
the steel capacity of the industry
will be 83.6% of
capacity for the
week beginning March
11, com¬
this
week
on
the
pared with 76.7% (revised figure)
week ago, 5.5% one month
ago and 94.5% one year ago. This
oiie
represents
points
increase
an
9.0%
of
6.9
over
the
previous
This
operating rate is
to 1,473,400 tons of
steel ingots and castings and com¬
pares with 1,351,700 (revised fig¬
tons
tons
one
one
week
ended Mar.
2, 1945, from 3,922,796,000 kwh. in the preceding
week. Output for the week end-^
ed Mar.
2, 1946, however, was
below
that
for the
sponding weekly period
corre¬
one
year
ago.
Consolidated Edison Co. of New
York
reports system output of
193,200,000 kwh. in the week end¬
ed March 3, 1946, compared with
177,900,000 kwh. for the corre¬
sponding week of 1945, or an in¬
of 8.6%. Local distribution
electricity amounted to 185,800,000 kwh., compared with 174,800,000 kwh. for the correspond¬
ing week of last year, an increase
.
of. 6.3%.
of
revenue
freight
for
the week ended Mar. 2, 1946, to¬
taled 782,397 cars, the Association
of American Railroads announced.
(or
previous week and 21 in the
was
an
increase of 59,116 cars
8.2%)
above the preceding
3,339 cars, or 0.4%, be¬
low the corresponding week of
1945. Compared with the similar
week and
period of 1944, a decrease of 4,496
cars, or 0.6%, is shown.
Paper and Paperboard Produc¬
tion—Paper
production
in
the
United States for the week ending
Mar. 2 was 101.8% of mill capaci¬
ty, against 98% in the preceding
week and
cor¬
responding week of 1945. For the
past eight weeks, with only one
exception, failures this year have
been
more
period last
than in the
numerous
year.
All but 3 of this week's failures
more.
liabilities
of
$5,000
or
Rising from 13 in the pre¬
week, these large failures
vious
numbered
19
in
the
week
just
a
with
ures
Small fail¬
year ago.
losses
under
$5,000
showed little change, 3 concerns
failing in this group as compared
with 2 last week.
However, they
far short of the 13
reported
1945's corresponding week.
In all trade and
industry groups,
were
in
failures either equalled
or
exceed¬
the number occurring a week
ago; in all groups except retailing,
failures were the same or higher
ed
than
a
year
The
ago.
rise
was
sharpest in manufacturing where
failures
week.
were
Nine
most
numerous
this
manufacturers failed
as
compared with 6 a week ago
and 4 in the corresponding week
of 1945.
Canadian
4, the
vious
week
failures
remained
same number as
week.
of
.
1945
In
the
there
at
in the pre¬
comparable
were
2
fail¬
ures.
-
Railroad Freight Loadings—Car
This
occurring in the comparable
week a year ago.
Dun & Bradstreet, Inc., reports 22 concerns
failirlg as compared with 15 in the
involved
89.3% in the like
1945
week, according to the American
Paper & Pulp Association. Paperboard output for the current week
wds 98%, compared with 97% in
the preceding week and 96%' in
the like 1945 week.
Wholesale Commodity Price Index-t-The daily wholesale com¬
modity price index,'compiled by
Dun &
Bradstreet, Inc., advanced
quite sharply in the past week,
largely reflecting the upward ad¬
justment of grain price ceilings.
The index reached a new
post-war
high of 187.07 on March 4, and
closed at 187.02
Slightly High¬
er—Increasing in the week ending
March 5.
This
was
6.0%
above
last
over
ago
year's
176.49.
For
the
were
intended for blending with
ed to the upward
ceiling revisions
announced over the past week¬
end. Cash
wheat, corn, oats, and
.
barley prices
closed
at
the
new
maximum levels, with all
futures,
except September and December
oats,
showing corresponding ad¬
Trading in wheat and
vances.
corn
futures broadened somewhat
country
offerings
were
still
restricted and it was
generally felt
in the trade that the new
most
part
foreign wools.
foreign wools
In
purchases
Demand
tive
at
for
remained
Montevideo. buying
firm
fine
strong.
was
prices.
ac¬
United
States buyers attempted
orders
for
wools
to place
Australian
desirable
but
supplies were limited.
appraised for purchase
1,757,050 pounds of domestic wools
during the week ended Feb. 21,
bringing the total to that date to
341,785,223 pounds, as against 380,998,971 pounds appraised to the
The
CCC
date
same
was
everything
better
in America, includ¬
a
Bowles,
ican
people in a helluva way.
Well, he didn't get his way and
he hasn't quit
And now, in the
way
of all
these big shots who pass over the
well.
The
demand
suits and shirts
was
for
of
men's
apparel
dent and several
remained
areas
The
demand
peared
to
be
for
No,
•
prejudiced
it
their
is
and
feet
because
back¬
they
have
ground.
the
on
Mr.
Bowles, trying to get his
author-
ity extended for a year, said that
Henry Ford wanted to boost the
price of his cars 55%.
Then a
short time later, he said that
merely
livingroom suites
attracting the greatest
attention. Upholstered pieces were
in fair supply and sold well.
Rug
departments reported that busi¬
ness was
generally brisk although
limited
selections
discourage
ers.
many
continued
consumer
draperies remained high.
House¬
wares
continued
to
appear
in
stores in small quantities and re¬
quests for them were made fre¬
quently. Difficulty in maintaining
adequate stocks was reported by
many stores.
Retail
was
over
volume
for
the
grain
when
rent
it stood at $4.24.
The
cur¬
figure represents an advance
over the $4.10
registered
of
1.7%
at
this
were
and
were
date
a
year
There
ago.
declines during the week
higher prices it was noted
listed for wheat,
no
corn,
rye,
country
estimated at from 13 to 17%
the corresponding week a
Regional percentage in¬
creases were: New England and
South 17 to 20 East 15 to
19, Mid¬
year ago.
dle West 9 to 13, Northwest 12 to
15, Southwest 16 to 20, and Paci¬
fic Coast 11 to 14.
Wholesale
unabated
activity
this week
the
over
continued
with
the
corresponding
at record
while
appliance^
ued limited.
ages
levels.
week
week
of
gift shows
Volume in
rose
slightly,
supplies
building
remained
volume
previous
contin¬
Stocks of soft goods
unchanged with short¬
reported in most lines.
Department
store
sales
on
for the week ended March
2,
increased by 19% above the
a
1946,
same
period of last year. This compared
with
increase
an
week.
of
20%
For
in
the
the
four
oats, barley, potatoes, sheep, and
weeks ended March
The index represents the
total of the price
per pound
of 31 foods in
general use.
increased by 21% and for the year
to date by 17%.
lambs.
sum
Wholesale
Retail
and
volume
Retail
last
week
Trade—
for
the
Retail
of the
merchandise
to shun
show
as
customers tended
substitutes, Dun &
Brad¬
street, Inc., reports in its current
survey of trade.
exceeded
that
Over-all volume
of
last
week
al¬
though reports from different lo¬
calities varied
greatly; it was con¬
siderably above the corresponding
week
a
The demand for
all staples continued to
be high.
year ago.
Meat
supplies this week were
larger than those of last week and
poultry continued to be plentiful.
Fresh vegetables and citrus
fruits
with
generally
a
decrease
in
in
good supply
demand for
canned
vegetables from that of
last week. Total retail
food vol¬
ume
remained close to the
high
level of the previous week and
2, 1946, sales
trade in New York
last
week remained active with gains
recorded in sales volume over that
country at large continued to be
affected
by the availability of
trade
previous
for
period
Volume of
year.
March
is
expected
to
decline under that of the
a
ago due
Easter
the
one
year
lateness
to
the
of
present
Heavy gains, however, are
expected in April. With the ad¬
year.
vent
of
the
Lenten
slight decline
was
sales.
season
hoted
some
in food
unnerve
automobile
as
these
are
parts.
what
Congressmen who have
always felt that Chester is a lot
of bunk, but how in the
name of
goodness
were they to get in be¬
hind his statistics.
Well, young
Henry did it for them. With one
of
the best publicity jobs we
have ever seen, he pointed out
to Chester that they Wete
only al¬
located some 40,000 cars in
1945,
right after V-E Day, that they had
been, asked what those cars would
and the price they setforth
was what the actual cost came to.
cost
Bowles, groping
on
this one, put
statement that Ford
had
complained about the costs of
parts, when, according to Bowles,
all price ceilings on
parts had
been
removed.
Mr.
Bowles
surprised
said
that
he was
Mr.
quite
Ford
didn't
know this.
Ford
Mr.
oil;
^
,
right
came
Bowles
the
back
telling
of
names
parts
which; price ceilings ..had not
been
removed.
A few nights
ago, Mr. Bowles,
attractive fellow, had about 30
Washington newspapermen as his
guests. He told them right off the
an
reel
that
he
had
been
utterly
wrong about Ford and wished he
had never made the statement
against him. His explanation
was
that a subordinate had givert him
this stuff and he had followed it.
It was one of the greatest regrets
of his life, so he told the corre¬
spondents.
But
Mr.
Bowles
has
not fired
that subordinate who misled him.
He has
not, after castigating Ford
public, done anything by the
in
way
of apologizing. His attitude
is to let it
slide, and. yoa news¬
forgive me. Why?
papermen
The
incident
well
is
known,
however, among the members of
Congress.
It
statement
to
faith
lost
in
is
not sans unfair
say
that they have
great Chester
the
'
.
Mk
\
There is
an amazing thing about |
Congress. It is still, notwith¬
standing
the
pressure
of
the
our
Bowles'
and
who
those
are
now
trying to sell a $600,000,000 sub¬
sidy for housing materials "for,
veterans," perhaps one of the ■%
greatest racketeering bills ever to
come
before that
body^ that the
Congress holds firm. The Admin¬
istration
has got to
three of our
widely syndicated columnists who
have written about What
of
toot
a
the
lobbyists Congress is, not
to pass a $600,000,000 subsidy for
an unknown from Louisville, Ky.,
T
Wilson Wyatt, to spend. The Con¬
who voted against this,
gressmen
the
propaganda
goes,
are
against the veterans. To be able
so
to stand up against this sort of
propaganda is real fortitude.
And you want to know what
.
pressure
for
present and
deliveries
was
still
majority of retailers
are
preparing to build up their
spring stocks to meet early con¬
a
demand.
Continued alloca¬
tion of available merchandise
reflected
the past week
tically all wholesale lines.
was
in prac¬
the
■
Congressmen of this stripe are
saying?
>
m
,
It is, why doesn't Harry Truman
cut out that nonsense?
He's
a
good '4
fellow and we'd like to go along
with him. This is the prevailing
sentiment of the Congress in these
troublous days. The labor leaders
According to the Federal Re¬ who have been depending upon
Bank's index, department
the Administration to bail them
City for
was
moderately above a year ago. the
out, had better gef down and go
weekly period to March
Women's Spring apparel contin¬
The great leadership
1946, increased 23% above, the to work.
ued to rank as a best seller in same
period last year. This com¬ which they once had, the business
clothing departments. Interest in pared with an increase of 27%
Of the U. S. Government interven¬
suits
and
coats
remained
high (revised figure) in the preceding
with
ing to insure their winning, is
neutral
shades
attracting week. For the four weeks ended
most attention.
Though
Truman
Handbags, belts, Mar. 2, 1946, sales rose by 26% over.
might
ceilings and other main floor items sold
|
•'
In wholesale markets this week
sumer
from
Bowles.
country-wide basis, as taken from
the Federal Reserve Board's index
preceding
removed
to
buy¬
The demand for curtains and
electrical
adjustment of
-
he
out the
ap¬
than
more
&
A rise of 1 cent put the
March 5 index at
$4.17, the high¬
est level touched since Oct.
7, 1920
a
seasonal with bedroom and
was
upward
evi¬
reported
furniture
food price index, compiled by Dun
the
a
decrease in sales volume of suits
from that of the
preceding week.
last year. Attendance at
ceilings.
men's
sustained at
high level. The apparent shortage
and
Bradstreet, Inc., continued to
higher this week, reflecting
Mr.
he
Wholesale Food Price Index at
Year Peak—The wholesale
trend
that
got his way,
would quit and.leave the Amer¬
slightly
year ago.
unless
New
were
Grain markets quickly respond¬
but
Business Failures
on
represented a rise of 1.4%
the 148.48 recorded a week
and
but activity in greasy type
were
below expectations.
wools
ended—more than two times the 8
Electric Institute reports that
loadings
num¬
occurring
ago.
the output of electricity increased
to 4,000,119,000 kwh. in the week
crease
the
year
ago,
Electrical Production—The Edi-
of
exceeded
96,900
month ago and 1,730,900
one
tons
10.6%
failures
pulled
considerable
in¬
showed
crease
7, commercial and indus¬
ber
week's
equvialent
soh
trial
same
or
week.
ure)
March
terribly
ward?
Such statements
cotton
in
later counteracted
by
a rebound to new
seasonal highs.
Weakness in securities markets
(Thousands of Kilowatt-Hours)
4,538,012
4,563,079
4,616,975
and
Congress, the representative
body of the American
people, is
standing of this writer
in
domestic
experienced early
week
4,524,257
4,042,915
4,096,954
;
the purpose of
college.
Chester Bowles, on the other
hand, went to college and he now
this?
smart
was amazed to hear
Mr. Ford say
that the price
ceiling had hot been
Declines
% Change
Week Ended—
De.c.
(Continued from first page)
college wanted to go on to other
things. As they understood it, that
than any man
way
is
prints and his associations made
Mr. Bowles very
cocky, indeed. A
few weeks ago, it was the under¬
and*
RECENT WEEKS
Ahead of The News
understands
Why
tremendously
ing Mr. Truman who did not go to
college. His knowledge of blue¬
prices
-
DATA FOR
still
were
and lamb
1.0
13.2
§1.1
1L1
~
1.9
11.3
13.4
SIncrease.
mills
many
busy converting to the 80% ex¬
traction rate. Hogs remained
at
ceilings
although
marketings
greatly exceeded last year. Sheep
wage-price policy as regards
packing houses and workers.
6.0
20.0
1.6
Total United States
as
during the
of being
eclipsed.
Because he is
new
4.2
5.2
20.5
11.9
s.
Pacific Coast—
•
6.4
4.3
15.9
2.4
States
week
sold
were
Washington horizon, he is by
Washington
slow during the week as
traders studied the effects of
the
Feb. 16
5.7
Rocky Mountain
*-
1.9
flour
type
From
were
Feb.23
15.7
Industrial
Southern
March 2
would not relieve the
tight situa
tion in grains to
any appreciable
extent.
Some small lots of new
serve
store sales in New York
;
and for the year
to date by 23%.weaken
on
this, Congress won't.
■V
National Fertilizer Association
Price Index Advances lo New All-Time Peak
Daily Average Crude Oil Production for Week
Ended March 2,1946 Increased !2,600Bbls.
■:fU
The weekly wholesale commodity price index compiled
Fertilizer Association and made public on March
estimates that the daily aver¬
American Petroleum Institute
National
week ended March 2, 1946 was
12,600 barrels over the preceding
barrels in excess of the daily average figure of
crude oil production for the
age gross
and
296,250
the United States Bureau of Mines as
of February, 1946. The current
'figure, however, was 38,870 barrels per day less than the output in
•&e week ended March 3, 1945. Daily production for the four weeks
companies indicate that the in¬
Reports received from refining
approxi¬
mately 4,779,000 barrels of crude oil daily and produced 13,871,000
barrels of gasoline; 2,416,000 barrels of kerosine; 5,888,000 barrels of
distillate fuel, and 8,634,000 barrels of residual fuel oil during the
stills on a Bureau of Mines basis
dustry as a whole ran to
the
in
steel
Supervisory employees who
union and bargain
collectively with their employers
are
entitled to be afforded the
wish to join a
guarantees under the Wagner Act,
according to a 2 to 1 decision of
the
National
Labor
Relations
Board on March 7The ruling
was made in a case involving the
.
tion's Vesta Mine and the United
product index showed
for the eighth con¬
secutive week to a new high point.
The grain inaex also reached
The livestock sub¬
week ended March 2,1946; and had in storage at the end of that week a new high level with most grains advancing.
104,462,000 barrels of finished and unfinished gasoline; 8,127,000 bar¬ group declined slightly with lower cattle prices more than offsetting
higher prices for calves and lambs.
Wool prices declined during the
rels of kerosine; 25,148,000 barrels of distillate fuel, and 38,285,000
latest week. The textile index declined during the week. All other
barrels of residual fuel oil.
DAILY AVERAGE
Ended
•B. of M.
Allow¬
Week
Change
Calculated
ables
Ended
from
Ended
Mar. 2,
Previous
Week
4 Weeks
Begin.
Requirements
Feb
February
in
the second
week
unchanged.
368,600
3,400
251,750
244,400
+850
800
81,000
81,000
88,000
+389,450
Kansas
254,000
249,400
+257,050
800
—
+
by
Compiled
1935-1939=100*
Latest Preceding
Week
North
157,600
503,300
464,300
146,200
146,200
321,000
321,000
392,000
356,150
356,150
347,000
503,300
Central Texas.
East Texas
Southwest Texas
—
_
Ago
Mar. 10,
1946
1945
1946
1946
150,300
157,600
Texas
Texas
West
148,800
Ago
Feb. 9,
Mar. 2,
Mar. 9,
Group
Year
Month
Week
Bears to the
140.5
140.9
141.2
146.6
145.3
Cottonseed Oil
163.1
163.1
163.1
172.4
172.0
169.1
165.2
demand,
241.7
206.1
exists
253.8
252.3
173.2
170.0
169.7
163.7
Livestock
159.5
159.8
157.5
159.4
Cotton
over
the
developed last fall*
but at the time it was postponed
by Mr. Lewis who said that hewould pursue the issue at a more
"appropriate time."
Mr. Lewisrecently brought up the matter
again, demanding enrollment of
the foremen, but operators, the
"Times" stated, are expected to
146.6
163.1
A strike
foreman issue
141.6
Farm Products
23.0
562,100
544,000
544,000
—
"Times" stated.
146.6
Grains
Coastal Texas
as
Fats and Oils
Foods
view¬
was
strengthening the hand of
John L. Lewis, President of United
Mine Workers, in the forthcoming
negotiations with bituminous coal
operators, a special dispatch from
Washington to
the New York
PRICE INDEX
COMMODITY
election.
The board's decision
ed
National Fertilizer Association
The
%
East
an
declined;
advanced and six declined.
fiach Group
Panhandle Texas
fused to grant
week 10 advanced and two
Total Index
25.3
WHOLESALE
900
388,000
index advanced and
series in the
price
13
preceding week five
WEEKLY
389,500
368,000
The company had re*
collective-bargain¬
ing recognition to the coal mine
foremen, whereupon the NLRB
was petitioned
by the union for
(AFL).
ers
1945
1946
600
Oklahoma
Nebraska
the
three declined; in the preceding
Mar. 3,
Mar, 2,
Week
1946
1
in the composite index remained
During
Actual Production
State
trict 50 of the United Mine Work¬
The cotton subgroup advanced
slight advance.
groups
(FIGURES IN BARRELS)
CRUDE OIL PRODUCTION
Clerical, Technical and Supervi¬
Employees, a division of Dis-
sory
higher prices for sugar and potatoes. The farm
a
Laughlin Steel Corpora¬
Jones &
reaching a new
The metal index,
industry.
Covered by Wagner Act
high point, rose 6.1% during the latest week because of higher
prices for finished steel. The building material index, also at a new
high point, advanced due to higher prices for structural steel shapes
and wire nails.
The food index advanced moderately because of
reported by the Institute follow:
'
the week ended March 9, 1946
preceding week. Although the percentage
yet the present level of the
alltime peak in
new
increases
Further details as
barrels.
1946 averaged 4,710,100
a
from 141.9 in the
requirements for the month
ended March 2,
by The
11, rose
for the week amounted to 0.7,
4,430,000 barrels estimated by
the
NLRB Rules Foremen
to 142.9
increase
index^ is
now only 2.3% higher than it was a year ago.
A month ago the in¬
dex stood at 142.0, and a year ago at 139.7, all based on the 1935-1939
average as 100.
The Association's report continued as follows:
The industrial commodity groups reflected the most pronounced
price advances during the latest week resulting from the recent price
to
4;726,250 barrels, an increase of
week
Thursday, March 14, 194JJ
CHRONICLE
THE COMMERCIAL & FINANCIAL
1408
continue
their
of
resistance
long
as
court
to
the
the possibility
as
reversal
of
the
NLRB policy.
The supervisors of the produc¬
tion and maintenance employees
Louisiana
Coastal
130.4
133.9
133.4
162.0
160.4
155.9
Metals
116.9
110.2
110.2
104.7
Building materials
Chemicals and drugs
294,800
369,750
288,850
--
69,800
288,850
82,800
Louisiana
North
129.3
133.9
161.3
162.5
161.3
160.4
154.1
and the supervisors of the clerical
and technical employees will vote
127.2
127.2
127.0
Fuels__.
80,900
364,600
800
+
126.5
133.9
Textiles
2,152,500
2,109,250
2,109,250
1,890,000 t2,126,504
._
-—
126.5
Miscellaneous commodities
; Total Texas
•
Arkansas
79,603
500
77,350
2,250
54,550
600
100
20
1,550
211,650
+
1,200
17,000
13,000
5,450
63,300
61,550
250
30,650
29,900
2,500
43,600
46,800
1,050
102,550
100,450
1,150
23,650
105.2
105.2
105.2
104.8
142.9
141.9
142.0
139.7
10,300
98,450
"Times" which continued:
119.9
12,500
+
212,550
18,300
198,000
118.3
119.8
All groups combined
103,950
100.0
250
1,000
■
100
Indiana
118.2
119.8
207,350
1,050
Alabama
.Florida
118.2
Fertilizers
53,400
+
55,100
in
118.2
81,100
+
77,000
49,000
Mississippi
800
119.8
Farm machinery
__
■f*
371,650
74,000
Total Louisiana
n
412,515
125.4
Fertilizer materials
368,000
"Indexes on
March
10,
1945,
1926-1928 base
1946,
March 9,
were:
March 2, 1946, 110.5, and
111.3;
108.8.
Eastern—
I..
(Not Jncl. 111.
61,200
66,750
Kentucky
29,000
30,1-50
1 Michigan
46,000
42,800
3
94,000
105,050
Ky.)
Wyoming
Montana
—
+
23,300
24,000
New
96,000
104,000
3,586,000
844,000
§823,700
20,650
19,100
19,100
20,400
Colorado
Mexico
—
—
98,450
Moody's Bond Prices and Bond Yield Averages
Moody's
computed bond
iiven in the following table.
3,877,950
+
10,700
3,864,000
U.S.
+
1,900
846,100
905,900
Govt.
Corpo¬
Bonds
bond
yield
averages
are
on
BOND
PRICES
Average Yields)
Avge.
Daily
\verages
3,859,220
848,300
and
ra te"1
Corporate by Groups*
Corporate by Ratings*
Aaa
Baa
A
Aa
R. R.
P. U.
Indus
Mar. 12
125.84
119.82
2.47
122.29
119.20
114.46
117.00
120.22
122.29
11
125.86
119.82
2.47
122.-50
119.20
114.27
116.80
120.43
122.50
122.50
'
Total United States
4,430,000
4,726,250
y
,
+12,600
4,765,120
4,710,100
^Thesff are Bureau of Mines calculations of the requirements of domestic crude
9
125.86
119.82
123.77
122.50
119.20
114.46
116.80
120.43
deductions of condensate and natural gas derivatives) based upon certain
premises outlined in its detailed forecast for the month of February.
As requirements
I;
may be supplied either from stocks or from new production, contemplated withdrawals
from crude oil inventories must be deducted from the Bureau's estimated requirements
to determine the amount of new crude to be produced.
In some areas the weekly
estimates do, however, include small but indeterminate amounts of condensate which
8
125.86
119.82
123.56
122.50
119.20
114.46
116.80
120.43
122.29
120.22
122.29
122.29
'
•
oil
,
4a».er.
7
is
mixed
with crude oil in the
y^jThis
iaeludes
'r\
Is the net basic allowable as of Feb. 1 calculated
and exemptions for the entire month.
which were exempted entirely and of certain
on
/"
*
other
fields
for
which
1
PRODUCTION
OF
GASOLINE;
STOCKS
FUEL OIL,
WEEK
ENDED MARCH
Figures In
2,
this section Include
of
% Dally Crude Runs
Refln'g
to Stills
Capac. Daily % OpReport'g Av. erated
i
gtp| District—
HI JUwt
1
Coast-—
99.5
0
r
District No. 1—76.8
756
Produc'n
at Ref.
and,
>
FINISHED
Blended
95.6
1,704
totals
plus
Stocks
105
71.9
Gas Oil
of
Resid.
Fuel
Fuel
-
sine
Oil
60
120.0
200
7,107
2,635
130
23,611
78.7
1,366
10,020
Texas——w
59.8
196
59.4
802
3,168
Texas Gulf Coast—
89.3
1,191
96.3
3,440
96.8
338
130.0
811
NoJ La
55.9
59
& Arkansas—i:
46.8
157
64
3,142
300
1,307
259
279
1,518
4,512
Ml
•'
lV
1,906
443 i r
159,,
12
92.3
37
114
20
99
62.3
362
2,245
97
832
86.0
2,037
15,904
548
CMlilorola
—
1946
35.7
114.27
116.61
119.00
114.27
116.41
120.22
122.09
119.20
114.27
116.80
120.02
122.29
126.15
119.61
123.34
121.88
119.20
114.27
116.41
120.02
122.29
126.05
119.20
123.34
121.46
118.80
113.50
115.82
119.41
122.29
25
126.28
119.00
123.12
121.25
119.00
113.31
115.63
119.41
122.09
126.06
120.84
118.60
112.93
115.24
118.80
126.11
118.20
122.09
120.63
118.20
112.56
115.04
118.40
121.46
4
125.18
117.80
121.67
119.82
117.60
112.37
114.66
117.80
120.84
120.43
122.50
117.80
120.63
4,779
88.4
*104,462
13,871
1946
85.7
4,595
85.0
'
13,175
119.82
123.77
122^50
119.20
114.46
124.97
117.60
121.46
119.82
117.40
112.19
114.46
121.88
122.42
114.85
120,63
118.60
114.66
106.21
110.88
114.46
119.41
120.26
111.25
118.20
116.41
111.25
100.65
104.48
113.70
116.22
MOODY'S BOND YIELD
Govt.
Corpo¬
Bonds
rate*
Corporate by Groups*
Corporate by Ratings*
Aaa
Aa
A
Baa
1.34
2.66
2.47
2.54
2.69
2.93
11_
1.34
2.66
2.47
2.53
2.69
2.94
9
1.34
2.66
2.47
2.53
2.69
2.93
2.93
Mar. 12
R. R.
P. U.
I'
1,254
2.54
2.81
2.63
2.53
2.81
2.63
2.63
2.54
1.34
2.66
2.48
2.53
1.34
2.66
2.48
2.54
2.69
2.93
2.81
2.64
2.54
2.69
2.94
2.81
2.64
2.54
1.34
2.66
2.48
2.54
5
1.34
2.66
2.48
2.54
2.69
2.93
2.81
2.64
2.54
4
1.34
2.66
2.48
2.54
2.69
2.94
2.82
2.64
y
29
1.34
2.67
2.48
2.56
2.69
2.95
2.83
2.64
2.54
2.64
2.55
1.34
2.67
2.48
2.56
2.69
2.94
2.82
21
1.33
2.67
2.49
2.56
2.70
2.94
2.83
2.64
2.55
15
1.32
2.67
2.48
2.56
2.69
2.94
2.81
2.65
584
2 65
2.54
6,209
20,846
8,127
25,148
2.67
2.49
2.56
2.69
1.33
2.69
2.49
2.58
2.71
2.98
2.86
2.68
2.54
2.70
2.50
2.59
2.70
2.99
2 87
2.68
2.55
1.33
.104,709
■
8,419
25,898
lines.
§Not
-
--
-
2.61
2.72
3.01
2.89
2.71
2.56
2.55
2.62
2.74
3.03
2.90
2.73
2.58
2.76
2.57
2.66
2.77
3.04
2.92
2.76
2.61
1946
1.40
2.77
2.58
2.66
2.78
3.05
2.93
2.76
2.62
1.31
2.66
2.47
2.53
2.69
2.93
2.80
2.63
2.53
High
1946—
45,002
2,4f6j006+
barrels
of 'kerosine,
5,888.000
-| —
-
■
oil
*■
1 Year Ago
39,290
oil^Mnd. distillate fuel oil and'8^634,000'barrels of residual fuel
*
2.53
2.74
1.38
—
11—
March
.
including
2.72
1.32
18
38,285
1 14,99,7 t97,810 •:> 7,097 M 27,103
«/„»IncI^deVUDf,in^h«llasoline stocks of 8,493,900 barrels.
tlncludes unfinished
ffsoline stocks of 11,975,000 barrels,
tStocks, ,'at' refineries, at bulk terminals; in
transit
pipe
25
2.94
1.31
ill—I
Jan,
,
tomary monthly statement show¬
ing the^ amount of money in cir¬
culation after deducting the
money held in the U. S. Treasury*
and
by Federal Reserve Banks
and agents.
The figures this time
those
are
show
of
that
that
at
Jan.
31,
the money
date
1946,
and
in circula¬
(including
of
that held in bank vaults
course,
banks of
the Federal
$27,917,081,-
member
062
as
against $28,514,518,195 on
31, 1945, and $25,290,209,861
Dec.
on
Jan.
with
31,
and
1945,
$5,698,214,612
compares
on
Oct.
the
World
first
June
War,
that is,
1914, the total was
30,
31,
the outbreak of
1920. Just before
on
$3,*
2.54
2.83
1—
30
362
'f
Department in
issued its cus¬
2.54
2
206
Treasury
has
2.53
2.81
2.69
7
Feb.
The
Washington
Indus.
2.64
2.80
6
309
i
—
Money in Circulation
Reserve System) was
Prices)
Avge,
Daily
Vverages
ineligible to
TL
of
AVERAGES
(Based on Individual Closing
as
mine foremen, general
mine
foremen,
tipple
were
tion
11, 1944
U.S.
1,009
-537
558 i:y,
4.775
~—
122.50
117.00
1946—
3.071
f
'
y.
_
produced
118.60
126.28
1946
1946
1 Year Ago
March 12. 1945
Low
.3, 1945
in
119.20
121.88
121.88
4
86.5
TJ. 8. B. of M. basis
gas
121.88
11
Total XL S. B of M.
and
123.56
123.34
Total U. S B. of M.
barrels of
119.20
123.56
'
Mar.
121.88
1.32
17.1
23,
123.56
119.61
•"r3,771
1,136
'
72.1
Feb.
122.09
119.61
120.22
302
25
15,732 >'
4,549
443
Mi 169
.>
.
District No. 4
basis
120.22
125.84
the
foremen, general master mechanic,
mine superintendents, general su¬
perintendent, assistant general su¬
perintendents, director of indus¬
trial
relations,
safety
director,
chief
engineer, chief of police,
weigh
masters,
weigh
masters*
clerks, training supervisor, safety
supervisor and dispatchers,
122.29
119.61
6,366
i'
1,246
88.9
369
2,
120.22
18
Jan.
Specifically held
vote
122.29
116.41
114.08
126.14
Oil
3,459
?
762
Mar.
120.22
a-
& Dist.
2,807
320
78.3
Basis
116.61
an
Kero-
23,160
81.2
87.2
*>.
114.27
1
IStks. of tStks.
Aockj Mountain—
District NO. 3
•
119.20
119.20
2 Years Ago
of
Inc. Nat. Gasoline
Louisiana Gulf Coast-
;
\'
123.29
122.29
March
are therefore on
tStocks
Unfin.
District No. 2--^-.
1 111., Ky
..
Okla., Kan.,
iuiano
123.56
123.56
8
t«d
:
119.82
119.82
said
clerk.
122.29
125.81
125.81
126.02
Appalachian—,
;>y.
120.22
Mines basis-
SGasoline tFinish'd
'* i
-
120.22
116.80
8
1946
reported
estimate of unreported amo-mts and
-Bureau
|i
OF
(Figures in thousands of barrels of 42 gallons each)
,
116.80
114.46
125.84
Low
GASOLINE, KEROSINE, GAS OIL AND DISTILLATE FUEL
AND RESIDUAL
81
114.27
21
High
STILLS;
119.20
15
Feb.
28-day basis and
the exception of
a
With
of Conservation Committee of California Oil Producers.
AND UNFINISHED
,
Mfe-
TO
RUN8
CRUDE
114.46
122.29
1
shutdowns
||||| ^Recommendation
119.20
123.56
2
shutdowns were ordered for from 4 to 9 days, the entire state was ordered shut down
days, no definite dates during the month being specified: operators only being
required to shut down as best suits their operating schedules or labor needed to
operate leases, a total equivalent to 4 days shutdown time during the calendar month.
,'
122.29
119.82
5
for 4
;
123.56
125.81
4
field.
Kansas, Nebraska figures are for week ended 7:00 a.m. Feb. 27, 1946.
fields
several
119.82
6
l
|g|g|§ tOklahoma,
125.81
116.80
elections,
Eligible to vote in each of the
elections will be (1) fire bosses,
mine crew foremen, assistant mine
foremen, maintenance bosses, me¬
chanical bosses, and (2) engineers.,
chief draftsmen, transit men, chief
supplies, clerk and assistant chief
assistant
MOODY'S
(Based
1946—
Total East of Cali f,
,
California
prices
separate
12,1945
1.66
2.91
2.62
2.72
2.92
3.38
3.12
2.93
2.68
March
11, 1944-
Moody's Baily
Commodity Index
Tuesday, March 5
1.81
3.10
(w;2.74i
2.33
3.10
3.71
3.48
2.97
2.84
yields on the basis of one vtypical" bond
(3%% coupon, maturing in 25 years) and do not purport to show either the average
level or the average movement of actual price quotations. ; They merely serve to
illustrate In a more comprehensive way the relative levels and the relative movement
•These prices are computed from average
:1945
—
March 6
Thursday, March 7
Friday, March 8
Saturday, March 9
March
Tuesday,
Two
March
weeks
Month
271.6
271.1
271.5
271.3
11
271.4
12
269.5
Feb. 26—
267.3
Feb. 11-—
March 12
High, Dec. 27_—
Low, Jan. 24—
March 4__
Low, Jan. 2
1946 High,
271.3
.
ago.
Year ago,
1945
ago,
1
271.3
Wednesday,
Monday.
2 Years Ago
I
459,434,174.
255.3
265.0
252.1
—
271.7
264.7
[Volume 163
Number 4472
THE COMMERCIAL &
FINANCIAL CHRONICLE
1409
I
Trading
The
;
Securities
st$%
New York Exchanges
on
and
Exchange
Commission' -made
whole, $211,'505,000,
public;
March 6 figures showing the volume of total round-lot stock sales
the New York Stock
the
volume of
stock
transactions
for
the
account
of
Civil
on
all
are
State &
on
.
the
for
WEEK
New
Stock
York
Account of
ENDED
Exchange and Bound-Lot
Members*
FEB.
sales—1
Stock
|
construction
on
10.03
the floor—
105,250
Short sales
9,800
tOther sales
144,200
now
and the
period in
April when
Total sales
t. Other transactions initiated off the floor—
j
£
154,000
Total purchases
■|
1.53
in
steel output is expected to
gain
rapidly. Equipment is now in good
shape and previous difficulty in
obtaining manpower has lessened
considerably.
Nevertheless
coal
stockpiles of steel companies are
281,510
Short sales
47,930
JOther sales
419,785
Total sales
467,715
-
4.41
Total—
4.
Total purchases
Short sales
1,188,530
—
242,600
JOther sales
still
1,281,755
no
weeks
Total sales
Total
Round-Lot
1,524,355
Stock
Sales
Transactions
for
WEEK
the
on
New
Account
ENDED
York
of
Members*
FEB.
16,
&. Total Round-Lot Sales:
15.97
Curb
Exchange
(Shares)
and
Short sales_'__
1 ?o
,
Total sales
3,331,120
3,391,820
are
281,040
Short sales
21,085
235,885
Total sales
256,970
I. Other transactions Initiated
on
7.93
'
the floor-
Total purchases
42,100
Short sales
6,000
JOther sales
73,350
.
Total sales
5. Other transactions initiated off the floor—
Total purchases
79,350
1.79
JOther sales
Total sales
164,065
Total purchases
Short sales
3.04
48,185
500,385
12.76
Q}. Odd-Lot Transactions for Account of
Specialists—
Customers' short sales
o
{Customers' other sales.
111,284
Total purchases
111,284
Total sales
169,201
•The term
"members" includes all
regular and associate Exchange
members,
^irms and their partners,
including special partners,
tin calculating these
percentages the total
'Compared with twice the total round-lot volume
volume includes
"other
of
on
their
are
exempted
down
from restriction
sales."
by the
Commission's
"other sales."
Engineering; Construction Totals
$68,369,000 for Week
engineering
construction volume in continental United
States totals $68,369,000 for the week ended
March 7, 1946 as reported
to "Engineering News-Record."
This volume is 29% below the
pre¬
vious week, 63% above the week last
year and 10% above the pre¬
vious four-week moving average.
The report issued on March 7
•continued as follows:
Private construction this week,
$47,073,000 is 33% below the
previous week and 79% above the week last year. Public construc¬
tion, down 21% below last week is 36% greater than the corre¬
sponding week of 1945. State and municipal construction is 0.2%
nbove last week and 328% above the week of 1945.
Federal con¬
struction dropped 49% below last week and
52% below the week
last year.
Total
when
fear
in
coal
a
strike
was
-
to /steel -production
shortage of pig iron and
is
scrap.
Supply of the former is improv¬
ing as more blast furnaces get
back
to
normal
production
but
Foundries, especially, have
heavy backlogs, with customers
pressing for delivery and for plac¬
ing of more orders; In scraip pres¬
is still
sure
heavy and supply is
light."
Result of
Treasury 1
Offering
Bill
announced
tenders for
The
Secretary of the Treasury
on
March
11
that the
$1,300,000,000 or there¬
91-day Treasury bills to
about of
partly due to supplying
domestic demands.
Inquiries have
been heavy for pig iron and semi¬
June
finished products for continental
countries which have been unable
March 8, were opened at the Fed¬
eral Reserve Banks on March 11.
to
get
material
raw
American
Institute
some
coal
on
production
Iron
be dated March 14 and to mature
13, which
Total
were
offered,
on
applied for $2,084,615,0(00;
Total
and
Steel
Monday of this week
telegraphic re¬
announced
that
accepted,
$1,303,816,000
(includes $54,648,000 entered oh. a
fixed price basis at 99.905 and ac¬
cepted in full). '
Average price, 99.905-f; equiv¬
ports which it had received in¬
dicated that the
operating rate of
alent
steel companies
having 94% of the
steel capacity of the
mately 0.375% per annum,
'
^
Range of accepted competitive
be 83.6% of
bids:
industry will
capacity for the week
beginning
March
11, compared
76.7% revised figure one
with
of
engineering
A 53% drop in Federal work offsets the 366% increase in
sales
on
Detroit
year
of
rate
discount
approxi¬
t\
High, 99.915, equivalent rate of
approximately
0.336%
discount
summary
markets,
NYSE Odd-Lot
ago.
"Steel"
of
of
on
Cleveland,
in
the
are
areas
on
mill
from
Concurrently
neighborhood customers
favored
cutting
quotas and
are
one
being
west¬
is
reported giving un¬
tonnage to customers in
limited
its state. Steel users dropped from
the rolls under the new sales
pat¬
tern
are
of local
flocking to sales offices
producers, but with little
success.
New
surged
steel
business last week
ahead further and the
order volume
at
the
being placed is
level. Specifed
what is called a firm
now
prestrike
tonnage or
backlog this week averaged about
seven
months full prodction
on an
industry basis at the present rates
although
certain
products
are
further extended. Until such time
as
the steel industry is able to
cause
huge
carryovers
be¬
of the shutdown in Febru¬
the placement of fresh orders
becomes a mere formality*
1
ary,
Export directives
steel
products
may
on
additional
come
soon.
of
iron-and steel
March 11 stated in
railroad workers.
The
latter
would
be
more
quickly
paralyzing than the former. How¬
the trade expects a peaceful
settlement of the rail dispute, but
Securities and Exchange
Commission made public on March
6, a summary for the week ended
Feb. 23 of complete figures show¬
ing
the
less
sanguine ,, as
situation.
faced
Thus
with
a
.
to
the
,
the
coal
industry
is
possible
second
major setback before it has fully
recovered from the steel strike.
daily
volume
of
stock
transactions
for odd-lot account
of all odd-lot dealers and
special¬
ists who handled odd lots on the
New York Stock Exchange,
Con¬
tinuing a series of current figures
being published by the Commis¬
sion.
The
figures
are
based upon
reports filed with the Commission
by the odd-lot dealers and spe¬
cialists.
7
STOCK
TRANSACTIONS FOR THE ODI*
LOT ACCOUNT OF ODD-LOT DEALER#
AND SPECIALISTS ON THE N. Y.
«
STOCK EXCHANGE
ever
is
Trading
The
its
part as follows:
strike
to
eastward.
eliminate
construction for the 10-week
period of
1946 records a cumulative total of
$664,671,000, 139% above the total
tor the like period of 1945.
On a cumulative basis private con¬
struction in 1946 totals $453,166,000, 385% greater than the
1945
period.
the
the
Chicago producers
ern
Civil
determent
ending
and
supply. In a fashion
"Steelmakers
are
seeking to
that should bring joy to the heart
meet the insistent call for their
of the Federal Trade Commission,
products
and
production
has
mills are drawing in their lines
climbed almost to the level
pre¬
and confining a large part of their
vailing before the strike of steelshipments to the more profitable
workers.
nearby areas. Firms in such reg¬
"With inquiry
ions
as
increasingly ac¬
Pittsburgh,
Wheeling,
Youngstown and Buffalo are re¬ tive and pressure of deliveries
most
insistent
the
industry is
stricting their sales in the Mid¬
west, particularly on sheet and threatened by a possible soft coal
strike next month, as well as a
strip products.
purchases and sales is
the Exchange for the reason that
§Sales marked "short
exempt" are included with
Civil
<
"Although the situation, is eas¬
ing in many respects one great
other financial
The
members'
only sales.
JRound-lot short sales which
with
clarified, much
duplicated tonnage will be found
on mill books.
w
of lend-lease
underway in quantity."
three
of consumers who must find new
452,200
Total sales
included
to
strike, if it
occurs, will
be a lengthy one,
steel companies are being forced
to make tentative plans for slow¬
sources
365,500
JOther sales
are
two
Realignment of sales territories
by steel producers has stepped up
in recent weeks, swelling the rank
142,965
Total—
'the Exchange
shutdown, according
aids and
one
42,360
21,100
_
Short sales
trules
it is believed in well 'tri¬
form ed
quarters that once the
situation begins to ease, or at
ieast
becomes
more
-
tOther sales
4.
in discouraging this
type of de¬
mand
called, steel companies hung on as
week ago, 5.5% one month
per annum.
ago
long as possible and then had to
and 94.5% one year
Low; 99.505; equivalentrate of
ago.
This
make drastic adjustments when
discount
represents
an
approximately
0.376%
increase
of
6.9
supplies ran out or reached the
per annum.
; ' f&fg
low point. By starting a slow¬ points or 9.0% from the preceding
(57%, of the amount bid for at
week. The operating rate for the
down in operations early the con¬
the low price was accepted.) week
:
beginning
March
11
is
servation of coal allows a more
There was a maturity of a sim¬
equivalent, to 1,473,400 tons of
economical
operation
of
coke
ilar issue of bills on March 14 in
steel
ingots and castings, com¬
ovens
and
blast
furnaces
and
the amount of $1,301,797,000.
leaves the industry in a better pared to 1,351,700 tons (revised
figure) one week ago, 96,900 tons
position for a full-scale output
one month
ago, and 1,730,900 tons
when the coal strike is ended.
Transactions for Account of Members:
1. Transactions of specialists in stocks in which
registered—
Total purchases
of
that
periods
8. Round-Lot
they
time have taken serious
$nd
in many cases effective
measures
some
year
have been running about
40% be¬
low 1945, partly due to the
the average.
on
circles
than
ing down some operations as soon
as the strike is called. In
previous
60,700
JOther sales
more
Because
Stock
1946
Total for Week
a possible slowdown
production may occur,
steel
tonnage
possible on books, regardless of
actual needs. .While
producers for
to say
Between
much
as
as
metalworking paper, which further goes
in its issue of today (March 14): "Even
though the present
percentage is based on less capacity because of revisions
early this
year, actual weekly output is on&
a par with prestrike
Steel shipments abroad this
activity.
184,870
902,640
"Inquiry for steel is increasing¬
ly active and various buyers are
pressing to get
able.
opera¬
coal mine
a
ventories to tide over in
event of
a coal strike.'
>7V / " " '' *. -
demand
from
steelmakers
and
foundries is heavy and
they seek
much more tonnage than is avail¬
speed, the steel industry was forging ahead this
attempt to make as much steel as possible before
an
tions might be curtailed because of
to "The Iron Age," national
801,770
Total purchases—
I
C
26,270,000
15,623,000
:3,622,000
12,001,000
Level—New Business Surges Ahead Further
With wartime
week in
Total sales
on
•
Steel Production Rises lo Alitiosl Presirike
717,770
f. Other transactions initiated
$41,893,000
17o
8,496,490
JOther sales
|
Mar; 89,1945
$96,786,000
69,969,000
26,907,000
15,457,000
11,450,000
15,491,000
classified
week, last
v
Feb. 28,1946
5,805,000
the
*
New Capital
8,201,400
1. Transactions of specialists in stocks in which
they are registeredTotal purchases
Short sales
J
\
Municipal
1,
14
New capital for construction
purposes this week totals
$13,536,000
and is made up of
$9,736,000 in state and municipal bond sales and
$3,800,000 in corporate security issues. New
capital for the 10-week
period totals, $315,189,000, 58%-greater than the
$199,417,000 reported
for the
corresponding period of 1945.
•. Round-Lot Transactions for Account of Members,
Except for the Odd-Lot Accounts of Odd-Lot
Dealers and Specialists:
I
;
waterworks, sewerage, bridges, commercial
buildings,'highways and
unclassified.
295,090
——
JOther sales
Total
•'
groups four of the nine classes
recorded gains this week
over the previous week
as follows: sewer¬
age, bridges, commercial
buildings and highways. Six of the nine
classes recorded gains this
week over the week last
year as follows:
(Shares)
Total for Week
Short sales
,
1946
16,
&. Total Round-Lot Sales:
In
<
Mar. 7,1946
$68,369,000
47,073,000 •
21,296,000
Federal
v
Exchange, member trading during the
week ended Feb. 16, amounted to 865,885 shares, or 12.76% of the
total volume on that Exchange of 3,391,820 shares.
During the week
ended Feb. 9 trading for the account of Curb members of 1,424,890
shares was 15.54 % of the total trading of 4,907,250 shares.
Transactions
was:
Construction._
Construction
Public Construction
On the New York Curb
fTotal Bound-Lot Stock Sales
wae»
Private
Trading on the Stock Exchange for the account of members
(except odd-lot dealers) during the week ended Feb. 16 (in roundlot transactions) totaled 2,712,885 shares, Which amount was 15.97%
of the total transactions on the Exchange of
8,496,490 shares. This
compares with member trading during the week ended Feb.* 9 of
2,984,370 shares, or 14.97% of the total trading of 9,960,270 shares. -
-
,
4hat public-construction-as. a
Qyei^the total iotJ a 10-week
engineering construction volume for the current
'■
Total U. S.
exchanges in the week ended Feb. 16, continuing a
figures being published weekly by the Commission.
shown separately from other sales in these
figures.
series of current
so
only 114%
'
lrand the 1945
week and the 1945 we*lr
week
members of these
Short sales
rose;
period of 1945.
on
Exchange and the New York Curb Exchange and
round-lot
construction,
Week
Ended Feb. 23, 1946
Odd-Lot Sales by Dealers—
Total
(Customers' purchases)
Number, of
Number of
For Wee*
Orders
Shares
Dollar
44^206
.
1,277,853
.
Value-L.;.
851,386,795
Odd-Lot Purchases by Dealers— £
(Customers' sales)
Number of Orders:
■XI
.
"Individual steel companies are
estimated to have from two to six
weeks supply of coal in stock.
While the mines operated during
the
steel
strike
the
position of
steel producers was not greatly
improved as they were unable to
unload shipments. As a result, a
coal strike of any duration would
soon bring steel production to a
standstill.
industrial
Demand for coke for
is decidedly
heavy, in spite of the fact that
slow recovery in pig iron produc¬
tion at some - points is making
more
purposes
coke available
wise would
be the
thani0othercase, it
Some
sellers say there appears to be no
limit to this demand, because oi
desire of consumers to build in-
Customers'
short
sales
>
"Customers' other sales.,...
Customers'
Number of
sales....
34,8 tt,
Shares:
Customers'
■"Customers'
Customers'
Dollar
total
l£l
34,6^3
■"
short sales.
3,891
1,042,884"
other sales....
total
sales....
value
.....
1,046,781
44,476,144
Round-Lot Sales by Dealers—
Number of Shares:
Short sales
70
.....
tOther sales
:
Total sales...
...
Round-Lot Purchases by DealersNumber of shares-.*...,.
•Sales
ported
marked
with
"short
exempt"
"other sales."
154,010
154,080
410,690
are
re¬
\
> tSalea to offset customers'
odd-lot orders
and sales to liquidate a
long position which,
is less
than
"other
sales." ?
a
round lot
-
are
reported with
Thursday, March 14, 1946
FINANCIAL CHRONICLE
THE COMMERCIAL &
1410
consumption. The cotton market strengthened
previous week.
"Other Commodities—Prices for cotton yarns and twine
encourage
Weekly Goal and Coke Production
Statistics
coal and lignite in the week
ended March 2, 1946, as estimated by the United States Bureau of
Mines, was 12,540,000 net tons, a slight decrease from the 12,625,000
tons produced in the preceding week, but a gain of 1,260,000 tons
over the corresponding week of 1945.
From Jan. 1 to March 2, 1946,
soft coal output amounted to 107,929,000 net tons, an increase of 3.1%
when compared with the 104,725,000 tons produced in the period from
production of bituminous
The total
••
March 3, 1945.
Jan. 1 to
week ended March
Mines, was 1,239,000 tons, an
preceding week. When com-,
pared with the output in the corresponding week of 1945 there was
an increase of 123,000 tons, or 11%.
The calendar year to date shows
an increase of 11%
when compared with the corresponding period
of 1945.
the estimated production of bee¬
hive coke in the United States for the week ended March 2, 1946
showed an increase of 23,500 tons when compared with the output
for the week ended Feb. 23, 1946; but was 33,100 tons less than for
the corresponding week of 1945.
I
'■T0
also reported that
STATES PRODUCTION
ESTIMATED UNITED
OF BITUMINOUS COAL
(In Net Tons)
toSStag mtoi "ueul
Daily
(1926
PRODUCTION OF PENNSYLVANIA
Mar. 3,
Mar. 2,
Mar. 3,
Mar. 6,
1946
1,239,000
1946
1,137,000
1945
1,116,000
1,092,000
1,071,000
1946
10,177,000
9,769,000
1945
9,172,000
8,805,000
1937
8,596,000
1,189,000
Anthracite—
•Total incl. coll. fuel
produc.
Bccliivc coke
"
%nclude§ washery
tExcludes
operations.
967,000
645,200
and dredge coal and coal shipped by truck from authorized
colliery coal.
tSubject to revision.
§Revised.
ESTIMATED WEEKLY
762,800
COAL AND LIGNITE,
PRODUCTION OF BITUMINOUS
BY STATES, IN NET TONS
weekly
current
131,900
75,300
98,800
total
United States
8,166,000
estimates
are
based
on
ihipments and are subject to revision, on receipt of
and State sources or of final annual returns
district
leather
and
carloadings
Feb. 23, 1946
400,000
7,000
98,000
138,000
State—
Alaska
Oklahoma
Arkansas and
Colorado
-
Georgia and North
Illinois
1,000
Indiana
1,000
1,558,000
560,000
39,000
108,000
1,163,000
450,000
43,000
3,000
1,522.000
524,000
42,000
117,000
1,101,000
427,000
54,000
3,000
91,000
Carolina
-
-
-
Iowa
Kansas and Missouri
Kentucky—Eastern
Kentucky—Western
Mm ry land
,
Mi'-higan
M niana (bitum. & lignite)
98,000
27,000
71,000
New Mexico
North & South Dakota (lignite)
95,000
32,000
60,000
23,000
61,000
741,000
2,766,000
134,000
Texas (bituminous &
1,000
2,000
4,000
153,000
...
145,000
153,000
0.2
+
0.7
127.2
—0.3
+
0.8
+
2.8
108.3
108.0
106.7
104.5
—0.4
+
1.1
+
3.3
120.1
120.1
118.1
0
+
0.3
+
1.7
120.1
101.4
85.4
107.8
321.0
119.8
metric
101.1
101.1
101.1
99.2
0.3
+
0.3
+
2.2
tons
1.9
in January a year ago.
.'V
the
Panhandle District
and Oregon.
85.7
85.4
83.8
—0.2
0
+
105.8
105.8
105.8
104.3
+ 1.9
+ 1.9
+
120.2
120.0
119.9
116.9
0.9
+
3.5
96.0
95.9
96.0
94.9
Exports of tin concentrates f»om
contained 3,194
Bolivia in January
3.4
+
0.7
+
Straits
+
1.2
in cents per
1.1
+
1.7
as
95.4
95.4
95.0
94.3
0
+
0.4
+
118.9
116.2
—0.2
+
0.5
+
2.8
98.5
98.5
97.5
94.9
+ 1.1
+
2.2
+
5.0
103.4
103.2
102.9
101.6
+
0.3
+
0.8
+
2.1
101.7
100.1
+ 0.3
+
0.8
+
2.4
385,000
26,000
2,260,000
1,006,000
204,000
_*
and Grant,
381,000
28,000
2,187,000
963,000
215,000
Mineral, and Tucker counties.
§ Includes Arizona
♦Less than 1,000 tons.
Wholesale Prices Rose 0.2% in Week Ended
IS
March
Feb.
101.1
11.9
4.3
0.9
0.6
vegetables
products
and
and
Petroleum
99.4
100.9
101.1
+
0.4
+
0.6
+
52.000
52.000
52.000
52.000
Department Reports
'Higher prices for iron and steel products in primary markets
than ofset price declines for agricultural commodities during
the week ended March 2, 1946," said the Bureau of Labor Statistics
of the United States Department of Labor on March 7, its advices
0.3
0.1
Bituminous coal
0.1
products
0.5
Other farm products.
Grains
0.2
Spread to Two
7, stated: "So far as non-ferrous metals were
situation worsened during the last week. By
Tight
its issue of March
concerned, the labor
March 4, all but two
tension
The publi¬
port business in tin."
cation further went
to say in
on
part as follows:
strife
two
last week.
addi¬
The
adding that "the index of commodity prices in primary markets pre¬
pared by the Bureau advanced 0.2% to 107.6% of the 1926 average
This," the Bureau noted, "was 0.7% above early February 1946 and
2.5% above the corresponding week of last year.
The index for all
commodities other than farm products and foods rose 0.4% during
p'fl
tional
the week."
leading brass mills still shut, the
The Bureau further
reported:
Steel—Higher ceiling prices for iron and semi-finished
the OP A on March 1,
These higher ceilings were followed by
advances in base prices of iron and steel products, ranging from 3
to 13%.
The effect of the higher iron and steel prices on the whole¬
sale price index was partly obscured by the declines during the week
for agricultural commodities.
If prices for all* commodities other
than iron and steel had remained unchanged during the week, the
announced advance in the prices of basic steels would have raised
the all commodities index by 0.3% (instead of 0.2%).
*
v"Iron and
::li
li
W::,
A'/
on
March 4. With the
scarcity
growing
domestic
of
is
metal
proving embarrassing
chiefly to wire and cable makers.
To obtain copper,
retroactive to Feb. 15,1946.
not
prices for agricultural com¬
generallylower during theweek, with the group index
products declining 0.3% and that for foods 0.4%.
Quota¬
tions for eggs declined seasonally.
Apple prices were lower, and
'M prices for citrus fruit and onions moved down as poorer qualities
modities
XIS
Copper Works of Ana¬
conda, at Perth Amboy, and the
El Paso refinery of Phelps Dodge
and finished steel products were announced by
"Farm Products and Foods—Market
'"3i
Raritan
closed down
buyers now are
formerly in re¬
gard to shapes. In the event that
the strike is of long duration, the
large stockpile of copper in the
so
insistent
as
hands of the Office of Metals Re¬
will be called upon to sup¬
serve
ply
more
metal than
previously
to consumers.
The
firm.
The
producers
what it will pay for the 20,000
tons
a
month
that
it
intends
to
prices declined. Gr^in quotations purchase in Latin America over
averaged fractionally lower. In the livestock and poultry group
the first half of the current year,
lower prices for steers and sheep on slow buying balanced price
Receipts of copper and brass
advances for calves, where buying competition was strong, and for
poultry. Cheese prices advanced about 13% during the week, re¬ scrap by dealers totaled 509,667
flecting the first effects of higher cbilings allowed by OPA to com¬ tons in 1945, which compares with
pensate for removal of cheese subsidies; Domestic wool quotations
504,579 tons in 1944, the Bureau of
declined as the Commodity Credit Corporation made a further re¬
Mines reports.
duction in its selling prices, the second in three months, in order to
came
on
the
market.
Potato
v:'¥
v-'vl
ing more or less nominal under
present unsettled conditions. The
strike
situation
rarily held
here
has
tempo¬
deliveries.
up some
Silver
A rider has been attached to the
Treasury-Post
tion bill
Office appropria¬
providing for the sale of
the Treasury's "free silver" on the
basis of 71.11c
Senate
ounce
an
Committee
troy. The
Appropria¬
tions is expected to remove this
on
ported to the Senate.
can
quarter are certain to create an
even tighter situation in the metal,
the industry believes.
John D.
CPA, stated last
Small, head of
that
week
the
stockpile
of lead
decline to 40,000 tons by the
Early in 1943 the
stockpile contained 276,000 tons of
lead.
Under regulations now in
hold down con¬
sumption of lead to the rate of
force, he hopes to
850,000 to 880,000 tons a
between
before
The
the
measure
is
tight situation in silver
re¬
con¬
tinues.
Strikes at base-metal
fineries
are
re¬
complicating matters
The New York Official
further.
price of foreign silver continued
at 7O3/40. The London market was
unchanged at 44d.
Record
Savings Gains
by Mutual Banks
The
greatest
increase
in
de¬
Should controls be abol¬ posits of mutual savings banks in
ished, he said, demand for lead any of their 130
years of opera¬
would probably rise to the rate of
tion is recorded in the 1946 edi¬
1,300,000 a year.
tion of the Mutual Savings Bank
Consumers
are
encountering
Directory just issued by the Na¬
more and more difficulty in lo¬
tional
year.
Association of Mutual Sav¬
cating metal, and the unsatisfied
demand is heavy.
One producer
reports that he is shipping lead
"so hot it scorches the floor boards
in the cars."
Sales of lead during the last
week involved
5,111 tons, against
2,268 tons in the preceding
week.
die cast¬
with most pro¬
experiencing no difficulty
Demand for zinc from
ducers
in
active,
was
ers
disposing of their output.
situation
in "Prime
ings Banks. During 1945 deposits
increased over $2 billions to a new
all-time high figure of $15,332,202,146, according to the Associa¬
tion, which states that assets kept
pace
now
with these record gains and
total
year-end
Zinc
Government
has not yet settled with
on
nearby metal, and as the
ended most operators were
rider
and uncertainty over
of foreign metal that
be imported during the second
position of foreign copper
remains
good demand for spot
week
hold¬
ing out for $103 per flask and
higher, an advance of $1 compared
with a week ago.
On forward
material $102 might be done, but
the quotation was viewed as be¬
and
the tonnages
were
for farm
to
end of March.
closed
refineries
quicksilver
was a
this country
may
Copper
Labor
of
sellers
firmer view of the market.
a
There
important Copper Refineries—Lead
Spain. A good vol¬
ume
of business was placed at
somewhat higher prices.
A price
of 58c a pound was named by
caused
take
and Mineral Markets," in
99% tin, continued
pound.
Increasing tension over political
developments in reference to Spain
0.2
more
li
or
Quicksilver
0.4
Dairy products
Cereal
52.000
2.1
at 51.125c per
textile products
Other
Non-Ferrous Metals—Strikes
owing to growing political
52.000
52.000
52.000
Chinese,
foods
"E. & M. J. Metal
52.000
52.000
52.000
1946
MARCH 2,
2.0
0.8
—
Other
52.000
March 5
Decreases
Fruits
52.000
52.000
52.000
March 2
SUBGROUP INDEXES FROM
1946 TO
goods
Cotton
May
52.000
March 6
102.0
101.5
-
April
52.000
52.000
28
March 1
March 4
Metals Reserve to take care of ex¬
March 2, Labor
follows:
1.2
119.7
other than farm
materials
building
tons
quality tin for shipment,
pound, was nominally
0
+
0
119.7
102.2
steel
and
Iron
against 4,302
tin,
December and 4,092
Increases
Other
of
tons
in
0
_
106.2
106.8
106.8
108.0
in reference to
■
+
85.6
96.0
108.0
95.4
119.5
99.6
103.7
23,
+
415,000
32,000 major copper refineries were closed down, restricting the movement
2,248,000 of the metal to those fabricators still operating to a low level. It
845,000 was hoped that larger tonnages may be released from the stockpile.
190,000
lOther Western States
1,000
1,000
" Lead was described as the tightest <£Lead
of all important metals, with de¬
Total bituminous & lignite—
12,625,000
12,065,000
11,925,000 mand active. The position of zinc
The industry is concerned about
tlncludes operations on the N. & W.; C. & O.; Virginian; K, & M.; B. C. & G.;
was unchanged. Quicksilver came
prospects for another revision of
and on the B. & O. in Kanawha, Mason, and Clay counties.
JRest of State, including in for more attention last week,
the limitation order.
Strikes in
Virginia
Washington
tWest Virginia—Southern
JWest Virginia—Northern
Wyoming
.,
quirements of mining properties
in that area is expected soon.
105.0
steel
Structural
148,000
lignite)
Utah
+2.5
A report on re¬
about 1,200 tons.
129.7
PERCENTAGE CHANGES IN
2,690,000
160,000
Tennessee
3-3
1945
con¬
total
Burma
lower
in
centrates
106.8
products and foods
595,000
815,000
2,850,000
OfliO&v£&uj—
Pennsylvania (bituminous)
|
7,000
85,000
170,000
0
1,565,000
554,000
54,000
155,000
1,095,000
345,000
35,000
3,000
85,000
143,000
announced
authorities
107.2
102.5
FEB.
Feb. 24, 1945
350,000
(o
2-2
1946
the
agreement among producers that
expires at the end of 1946.
*"
131.0
products
monthly tonnage reports from
302,000
6,000
matters pertaining to
discuss
107.4
lighting materials
Metal and metal products
Building materials
Chemicals and allied products—
Housefurnishings goods
Miscellaneous commodities
Raw
materials
Semi-manufactured articles
Manufactured products
All commodities other than farm
and river
March
tin situation and
to review the
131.1
and
from the operators.)
Feb. 16, 1946
1945
products
Week Ended
Alabama
3-3
1946
products
Textile
Fuel
7
107.9
All commodities
railroad
2-2
1946
130.7
products
Hides
§ Feb. 23,
tMar. 2,
2-16
1946
107.6
Foods
Calendar Year to Date
2-23
commodities
Farm
ANTHRACITE AND COKE
The International Tin Commit¬
tee is to meet in London on
1936 from—
1946
2-23
3-2
1946
Commodity group—
Grade "A" tin.
The
basis remains Un¬
changed at 52c.
Both prices are
substantially below cost. Dealers
authorized to export tin will have
to purchase the metal in lots of 5
tons or multiples of five.
for
pound
British
preliminary)^^
has
export price of 58c per
an
last week that stocks of tin
Mar. 2,
All
limited vol¬
a
domestic selling
'
Mar. 3,
of
Office of Metals Reserve
the
ENDED MARCH 2, 1946
100)
=
eight weeks are
care
of business in tin for export,
ume
percentage changes in
2,4946.
1945 and (2)
1946 to March
FOR WEEK
WHOLESALE PRICES
(Indexes for the last
2,090,000
adjustment.
(In Net Tons)
(The
1946, and March 3,
subgroup indexes from Feb. 23,
+
Tin
take
To
for the past three weeks,
show (1) indexes
The following tables
for Feb. 2,
1945
1946
1945
11,280,000 107,929.000 104,725,000
2,104,000
1,880,000 2,072,000 <1,954,000
Week Ended
Penn.
prices in primary markets. In general, the prices
are those charged by manufacturers or producers or are those pre¬
vailing on commodity exchanges.
The weekly index is calculated
from one-day-a-week prices.
It is designed as- an indicator of week
to week changes and should not be compared directly with the
monthly index.
-
tSubject to current
ESTIMATED
price data, for the
Statistics' wholesale
Labor
of
Bureau
12,625,000
12.540.000
a verage- ----- - -- _ - -
•Revised.
1 Commercial
The
1946
1946
lignite—
Bituminous coal fz
•
following notation in its
Department included the
Labor
most part, represent
AND LIGNITE
tMar. 2,
Mar. 3,
'Feb. 23,
Mar. 2,
The
by OPA amounting to 35c per-100
lb., retroactive to Feb. 15.
Recovery of zinc from scrap and
residues in 1945 totaled 132,985
tons.
This total does not include
zinc recovered from scrap brass.
named
report:
——Jan. 1 to Date—
Week Ended
Total
advanced
provisions of the Bankhead
amendment to the Stabilization Extension Act of 1944.
Bleached
muslin prices increased, the first price advance under a revision of
MPR 127, made to restore margins of converters of cotton cloth.
Refinery prices for Oklahoma gasoline continued to drop, with larger
stocks than at any time during 1945.
Bituminous coal prices rose
fractionally, and ergot prices advanced with a continued shortage of
higher ceilings allowed under the
with
commercial stocks."
2, 1946, as estimated by the Bureau of
increase of 102,000 tons (9%) over the
The Bureau
"
Pennsylvania anthracite for the
Production of
following
the decline of the
The
Western was
viewed as satisfactory, even
$17,013,451,176.
depositors
At the
numbered
nearly 17 millions.
The Directory is regarded as
'an
invaluable hand-book because, of
its
detailed information
tistics
concerning
every
and
sta¬
mutual
though savings bank in the country, in¬
the
question of higher labor costs
cluding rates of interest-dividends
has
complicated matters in refer¬
paid,
ence
to
ducers
galvanized products. Pro¬
of
galvanized sheet were
granted an increase in
the price
institutions
Christmas
safe
operating
Clubs, school savings,
deposit, and life insurance
I
departments, etc.
■¥•!
n
'■
■■
»
■■'■.-■■
•
-
"
-
■■;:- ■■■
-*
'
V^'i-'I,;: /:i;:',w''-v>iii.:,!J pr<^;>'r,j,
-
•
Volume 163
•
Number 4472
v
i'Y''k'■•■..'! W V;' fy:J'';?tf v,f 'i' -:'.^^^r^'';::c;'
r
•
..:-;;?v:r';
/v;;H.V:.: p^>i-p. '■ / '■■'■■^
THE COMMERCIAL &
FINANCIAL CHRONICLE
-'V i'-v'?'
V.';
^;
:..-•
'
141
Revenue Freight Gar Loadings During Week $J$i;
Ended March 2, 1946 Increased 59,116 Gars
Loading of
.
totaled
nounced
March 7.
on
Alabama, Tennessee 6c Northern
Atlanta. Birmingham Ab Coast,
Atlantic Coast Line
freight for the week ended March 2, 1946
the Association of American Railroads an¬
cars,
This
a
L
Loading of revenue freight for the week of March 2, increased
59,116 cars of 8.2% above the preceding week.
1-21,643
an
:
above the
above the corresponding week in 1945.
cars
alone, grain and grain products loading for the week of
totaled
37,846
week and
cars,
increase
an
of
3,445
increase of 11,260 cars above the
an
above
cars
the
March
Livestock
the
loading amounted
below the
to
16,659
preceding week but
corresponding
week
in
1945.
an
In
decrease
a
of
the
Western
Districts
decrease
2,277
of
cars
577
preceding week, but
564
alone
the
above
loading totaled 42,588
preceding week and
an
cars
a
above
the
preceding week
but
cars,
decrease
a
increase of
an
of
4,936
2,169
Richmond, Fred. & Potomac
Seaboard Air Line
Coke loading amounted
a
2,367
1944,
4
4
weeks
weeks
of
January
2,866,710
\yeek of March 2
Total
The
a
summary
this
period
roads
66
OF
AND
611
898
157
916
1,829
127,838
124,148
109,224
130,635
CARS)
FROM
WEEK ENDED
MARCH
Total
14,219
15,712
14,018
2,968
2,570
3,204
3,536
21,169
3,351
19,978
11,156
3,837
4,802
4 328
1,446
1,262
244
697
834
683
626!
8,751
8,788
11,383
519
356
407
186
10,430
Revenue
1946
Eastern District—
Freight Loaded
1945
1944
Connections
1946
1945
353
284
279
1,616
1,571
Bangor & Aroostook
2,571
2,700
2,477
393
609
Boston & Maine
7,265
7,426
6,641
13,229
15,843
1,213
1,273
1,432
2,144
2,211
Ann Arbor—
Chicago, Indianapolis & LouisvilleCentral Indiana
6,169J
12,618
4,914
457
1,009
300
47
1,886
2,121
2,723
2,820
3,6i6|ed, showed a decrease
6'1ok 1 below December and a
5,350
4,163
10,235
5,238
250
84
474
2,135
2,595
2,429
2,718
81,551
86,982
67,056
24,081
22,953
21,417
9,055
3,382
3,033
3,407
341
517
9
19,676
11,939
3,300
13,482
3,139
11,065
2,952
11,026
783
2,700
2,641
13,079
3,261
707
14,166
4,137
758
766
1,340
2,406
3,782
3,305
3,682
6,638
3,095
650
663
751
30
836
647
1,292
2,317
2,126
1,579
913
964
503
1,764
110
98
S
738
708
17
463
7
18
0
29,384
28,163
9,195
0
313
471
O
15,801
2,218
16,863
15,469
11,322
16,967
545
639
7
1
1,677
1,949
1,511
2,477
4,241
122,848
118,644
73,533
105,343
367
42
2,540
Delaware & Hudson
4,356
4,927
5,026
11,385
15,169
Delaware, Lackawanna & Western-
7,687
7,129
7,666
9,296
11,751
224
186
229
157
142
1,694
1.624
1,763
1,719
2,370
265
446
307
3,877
12,493
13,356
16,055
4,035
3,966
9,142
10,010
2,516
4,298
Oklahoma &
and
.
Lehigh & Hudson River—±
—
I
Lehigh & New England
156
160
189
2,197
1.741
1.944
1,609
1,356
Lehigh Valley
8,399
7,917
9,154
7,337
3,676
1,254
877
789
1,477
5,873
2,969
2,741
3,300
2,802
2,429
2,680
386
;
343
'
263
1,366
1,286
187
110
187
411
431
5,494
6,585
5,729
3,736
15,548
15,433
13,712
121
123
198
8,286
8,131
8,361
3,519
2,845
5,304
7,616
9,109
10,943
12,369
4,311
2,920
2,621
2,476
4,021
4,698
Monongahela
6,239
5,761
5,906
268
5,378
5,500
5,246
5,377
6,133
8,319
78
76
79
44
24
22
12
25
65,358
Ry.
Coast
Line
69,601
69,960
58,219
69,650
only in
RR.
1944
and
^Includes
also
Midland
Valley Ry. and
City-Ada-Atoka Ry.
Oklahoma
Kansas
in
1945
304
Montour
2,868
New York,
& Hartford
•—
2,624
24
48,230
52,518
55,400
11.057
10.818
13,991
20,284
322
870
1,147
2,335
3,140
6,726
6,396
14,492
18,746
425
506
503
2,296
2,803
6.583
Y., Susquehanna & Western
Pittsburgh & Lake Erie
—
Pere Marquette
7,450
7,635
7,353
5,208
4,726
7,468
7,797
9,471
4,645
973
683
762
41
279
336
247
234
'
757
Allegheny DistrictAkron, Canton & Youngstown
Baltimore & Ohio—
Bessemer & Lake Erie
Cambria & Indiana
Central R. R. of New Jersey
1,856
3,928
400
1,192
6,059
5,987
11,558
1,117
13,613
4,447
Wheeling & Lake Erie
970
384
5,951
—
833
344
6,212
5,033
3,633
5,379
149,267
Wabash
We give herewith latest
figures received by us from the National
Paperboard Association,
Chicago, 111., in relation to activity in the
paperboard industry.
26
244
•—
^
NOTE—Previous year's figures revised.
17
48,459
10,489
5,603
Ontario & Western—
New York, Chicago & St. Louis..
N.
Pittsburgh & Shawmut
Pittsburg, Shawmut & North
Pittsburgh & West Virginia
Rutland—
.w——
2,371
44,378
■
New York Central Lines
N. Y., N. H.
1946.
150,858
159,498
204,857
252,634
The members
of
represent
563
806
699
1,387
figures
1,578
:—-
39,966
40.271
42,208
24,261
33,256
—
2,606
3;127
2.061
1,064
1,454
1,665
1.757
11
11
6,016
6.497
7,085
16,634
21,849
409
501
637
59
44
261
Cumberland & Pennsylvania—
156
201
7
14
26
Ligonier Valley
Long Island
-Penn-Reading Seashore Lines—.
1,705
—
Pennsylvania System—
Reading Co
Onion (Pittsburgh)
Western Maryland
104
108
9
59
1,623
1,905
1,215
4,726
4,750
1,614
1,764
1.643
73,143
78,427
.73,232
56,911
are
15.0S0
15.749
25,960
31,321
14,330
18.824
4,191
3,842
159,592
172,949
1,988
2,583
19,374
2,698
3,993
12,057
16,546
174,963
147,772
184,912
\
5,090
/
Order*
Period
Received
1
Dec.
Pocahontas District—
Virginian——~~
26,859
27.189
11,561
12,794
20,833
21,231
6,608
10,505
5,030
4.399
4,279
1,784
2,608
57,470.
r
52.091
•
52,699
19,953
25,907
r/risr;/
'
Remaining
Percent of Activity
Tons
Current Cumulative
472,568
111,967
144,482
134.265
142,142
29—;
122,229
490,123
96
94
97
98
94
451,654
92
,
94
487,481
;
94
462,446
52
93
75
75
94
85
143,550
143,101
526,891
523,672
507,651
499,955
93
5—
Jan, 12
Jan.19.
Feb.
2
9
—
Feb. 23_—.—Mar. 2—l-__
89
150,634
152,066
516,776
529,767
of
unfilled
order*
\
,
139,681
95
97
Manager, The Ameri-'
Casualty Co. of Reading, Pa.;;
Acheson
E.
Lucey, Advertising
Manager, American International
Underwriters Corporation, New
York City; and Ruel S. Smith,
Manager* Financial and Insurance
Advertising,; Time, Inc., New York.
Lumber Movement—Week
Ended March 2, 1946
According to the National Lum¬
ber
Manufacturers
Association,,
lumbef shipments of 426 mills re¬
porting to the National. Lumber
Trade
Barometer
week
new
were
for
week,
1946.
In the"
orders of these'
mills were 6.8% above production.
Unfilled order files of the report-^
ing
149,794
516,211
94
139,993
155,381
500,507
97
161,122
533,794
98
mills
amounted to 86% of.
stocks.
For reporting softwood
mills, unfilled orders are equiv¬
alent to 32 days' production at the
For the year-to-date, shipments
of
,
'
Compared to the
93
average
cor¬
responding
Week
of
1935-1939,
production of reporting mills was
2.0% below; shipments were 8.1%
below; orders
,,
11.1%
the
reporting identical mills ex¬
90>Zi ceeded production by
10.7%; or¬
9 iml
ders by 11.9%.
r
j
:
Promotion
can
rate, and gross-stocks are
equivalent to 36 days' production.,
;
Note*—Unfilled orders of the prior week, plus orders
received, less production, do
necessarily equal the unfilled orders at the close.
Compensation for delinquent
reports, orders made for or filled from stock, and other item*
made necessary adjust¬
ments
#
current
198,985
—
't
*
President Smiley also announces
the election of three new mem¬
bers: John Flint Sheldon, Sales
88"
94
1946—Week Ended
Jan.
nounced later.
same
Tons
152,571
154,235
157,792
148,591
78,862
178,590
169,482
Dec,
not
Total
Production
143,366
22
The program now being
developed by Vice President Theo¬
dore
W.
Budlong will be an¬
production
ending March 2,
BULL ACTIVITY
be¬
arranged for the Saturday and
Sunday preceding the meeting, if
above
Tons
97,323
15.
Dec.
Feb. 16
30,988
21,452
total
Unfilled Orders
176,346
8
Dec.
Feb.
Chesapeake & Ohlo.
Norfolk 8c Western.
the
172,297
173,537
150,330
1045—Week Ended
Dec.
■
REPORTS—ORDERS, PRODUCTION.
Jan. 26
Total
of
advanced to equal 100%, so that
they represent the total
STATISTICAL
66,113
13,390
1
83%
industry, and its program includes a statement each week
from each
member of 'the orders and
production, and also a figure which indi¬
cates the activity of the mill
based on the time operated.
These
Industry.
Cornwall-
.
this Association
are
desired.
44
35
„
Members
vised that accommodations may be
347
8,472
2,562
Total
Gulf
.
at
ing asked to obtain reservations at
Hotel Hershey early, and are ad¬
18,727
46
10,259
Atlantic
Spring Meeting of The In¬
Advertising Conference
be
the Conference.
5,458
18,012
Weatherford M. W. 6c N. W
in
-
and
4,050
1,142
4,625
2,595
Texas 6c New Orleans
Texas 6c Pacific
Wichita Falls & Southern
tIncluded
over
Janu-
over
Hershey, Pa., May 20 Z
21, it was announced recently
by Ralph W. Smiley, President of
2,651
14,772
Maine Central
—
The
272
2,631
1,668
18,459
3,127
612
7,804
2,706
3,146
4,534
10,939
311
6,842
2,120
Louis-Southwestern
51
339
5,321
_
Quanab Acme & Pacific..
2,038
19.0%
9.9%
Insurance Advertising
Conference in May
will
Missouri-Kansas-Texas Lines
33
1945.
and
surance
tK. O. & G., M. V. 6c O. C.-A.-A
Kansas City Southern
987
Erie
ary,
increased
16,028
—
Louisiana 6c Arkansas
Litchfield 6c Madison
37
class
December
0
27,124
125,148
991
Grand Trunk Western.:
this
712
13
Missouri 6c Arkansas
January, 1945.
commodities, including to¬
bacco, textile products, building
materials, vehicles, vehicle parts,
groceries, chemicals, mine equip¬
ment and mine ore.
Tonnage in
586
1,302
866
1,494
—
.
steel M
ous
2,396
•
and
About 4% of the total
tonnage
reported consisted of miscellane¬
1,396
2,145
_
1945.
iron
.
■
70
12,659
Southwestern District—
47
Detroit & Toledo Shore Line
below
989
2,819
of
of 0.8%
drop of
Their traffic volume was
below December and 7.7%
5.7%
19,070
petroleum
hauled about 3% of the total ton¬
15,075
4,543
22,167
of
10.3% below January,
3,416
nage.
Total
1,084
Detroit, Toledo & Ironton
Transportation
products, accounting for about
14 % of the total tonnage report-
71,877
i
940
Central Vermont
Detroit & Mackinac
cember and was 7.6% below Jan-
uary-1945-
102
124
Utah
St.
178.3.
Approximately 79%
505
8,946
1945
index figure,
4~J— ^
com-,
the" basis of the
average
210
4,376
1,-r
ATA
Afr A
on
508
International-Great Northern
Received from
<
338
785
6,903
„
of
as against
December; and
of all ton¬
nage transported in the month
was hauled by carriers of
general
freight The volume in this category increased 11.5% over De-
14,761
2,373
21,343
3,975
1,194
_
aggregate
in
monthly tonnage of the reporting
carriers for the
three-year period
of 1938-1940 as
representing 100,*
16,625
ZZ
tons
2,495
5,519
10,031
„
ended
2
813
949
7,099,709
CONNECTIONS
The
,ri"
puted
.
Peoria 6c Pekln Union
Total Loads
Railroads
,
1
36
carriers
8051 *>925,348 tons in January,
134
of the freight carloadings for
RECEIVED
'ii
9,487
Burlington-Rock Island
LOADED
(NUMBER
1,603
in
these
319
Gulf Coast Lines
FREIGHT
*>617,047
9,055
carriers
an
766,389 tons in January,
was
Southern Pacific (Pacific)..
Toledo, Peoria & Western
week
524
4,753 i
10
786,893
the
445
375;
503
3,115
3,154,116
over
"
207
showed
Carriers
3,158,700
March 3, 1945.
REVENUE
1,643
from
transported
28,150
Union Pacific System
reported gains
3,967
957
89,645
Nevada Northern
Nbfth western Pacific
the separate railroads and systems for the week ended March
2, 1946.
During
3,250
961
544
623
Western Pacific
following table is
3,091
8,706
-
6,841,878
6,532,721
370
_
785.736
.,
,
278
1,017
14,287
3,003,655
.,
333
135,917
3,052,487
782,397
1,058
24,504
Missouri-Illinois
'-**<**- 1944*
1945"
- •
2,833,620
February
of
-
168
States
22,656
Fort Worth 6c Denver
City
Illinois Terminal
ex¬
cept the Pocahontas, Southern, Northwestern and Centralwestern.
'
217
as
Comparable reports received by
ATA
12,600
9,725'
Trucking Associations/
follows:
4,159
17,732
13,790
149
Colorado 6c Southern
Denver & Rio Grande Western
Denver 6c Salt Lake.
-
ing week in 1945 except the Pocahontas, Southern, Northwestern, and
1946-
28,107
23,890
Winston-Salem Southbound
Chicago, Burlington 6c Quincy
Chicago 6c Illinois Midland
Chicago, Rock Island & Pacific
Chicago 6c Eastern Illinois
decreases compared with the correspond¬
Central western, and all reported decreases compared with
3,779
893
4,436
25,788
American
*
below
year, according, to '
Inc., which further announced
2.565
609
Z!
Bingham 6c Garfield
cars
■
districts reported
500
8.3%
January of last
Central Western District—
corresponding week in 1945.
All
429
4,489
26,906
,
■
uary increased 9.2% over Decernber but
decreased
130^
2,323
•'
11,316
Minn., St. Paul 6c S. S. M
Northern Pacific
below the
cars
1,201
cars
increase of 4*096
an
decrease of
1,251
11,202
24,094
Alton.
to 12,948 cars,
1,614
139
459
Atch., Top. & Santa Pe System
preceding week, but
1,638
51
12,154
20,678
Spokane International
Spokane, Portland 6c Seattle
corresponding week in 1945.
above the
3,716
56
433
~
™
Southern System.
Tennessee Central
below the
cars
581
3,734
Increased in January
The volume
of
volume of freight frm
freight trans-:
ported by motor carriers in
Jan-
319
609
3,485
1,343
L.__ZZZ
-
Total
loading amounted to 9,457
297
118
343
Piedmont Northern.
the corresponding week in 1945.
Ore
313
108
Ishpemlng
above
cars
1,758
235
266
Green Bay 6c Western.
Lake Superior &
increase of 4,938
increase of 1,535
1,627
1,642
3,778
29,296
26,274
Minneapolis & St. Louis
an
417
.
Great Northern
cars,
429
513
Chicago 6c North Western
Chicago Great Western
Chicago, Mllw., St. P. 6c Pac
Chicago, St. Paul, Minn. 6c Omaha
Duluth, Missabe & Iron Range
Duluth, South Shore 6c Atlantic
Elgin, Joilet & Eastern
Ft. Dodge, Des Moines & South
increase of
an
4,840
Northwestern District-
above the corresponding week in 1945.
Forest products
cars
below the
cars
3,921
5,120
ZZZI
2
increase of 2,676 cars above
loading of livestock for the Week of March 2 totaled 12,588
t
14,179
6,369
1,834
3,307
64
_
preceding
corresponding week in
cars,
■
1,173
Total.
1945.
cars
2,537
'
724
14,237
3,420
Z
Illinois Central System
In the Western Districts
2,023
t
10,169
%
•84
_
Macon, Dublin & Savannah
Mississippi Central
Nashville, Chattanooga & St.
preceding week, and an increase of 22,579 cars above the
corresponding week in 1945.
> •'
< ,.A;
Grain and grain products loading totaled 54,912
cars, an increase
of 3,192 cars above the preceding week and an increase of
13,631
886
*
359
432
Louisville & Nashville
Norfolk Southern
.
I
1945
200
1,792
J
L_
increase of 7,760 cars above the preceding week, and
increase of 14,323 cars above the
corresponding week in 1945.
Cpal loading amounted to 185,275 cars, an increase of 1,089 cars
*
®
't "
508
Florida East Coast
cars, an
1946
317
.
15,555
4,264
Z*ZZ
Georgia—
Georgia & Florida—
Gulf, Mobile & Ohio
corresponding week in 1945.
Loading of merchandise less than carload lot freight totaled
J
•
881
t
,
below the
Connections
1944
15,203
4,648
Gainesville Midland
Miscellaneous freight loading totaled 338,915 cars, an increase
of 36,436 cars above the
preceding week, but a decrease of 50,780 cars
Received from
.
384
932
,,
ColumbuB & Greenville
Durham & Southern.
<
,
1945
530
Central of Georgia
Charleston 6c Western Carolina
Clinchfield—
decrease below the corresponding
week of 1945 of 3,339 cars, or 0.4%, and a decrease below the same
week in 1944 of 4,496 cars or 0.6%,
was
Total
Revenue Freight Loaded
1946
Atl. 8c W. P.—W. R. R. of
Ala.—
revenue
782,397
Total Loads
Railroads
Konthern District—
were
4.7% below.
'
THE COMMERCIAL &
1412
by issuing 4,000
tire its remaining
ferred stock.
Items About
Trust
Jackson,
N. Baxter
President of
Bank & Trust Com¬
of New York, announces the
appointment of Eugene W. Stet¬
pany
President of
the Savings Bank of New London,
Conn., died on Feb. 28, at 81 years
of age; Mr. White had held the
presidency for 16 years and had
also served as President of the
Companies
the
associated with
the
with
E. White,
Atlantic States, includ¬
ing
Virginia,
North Carolina,
South Carolina, Georgia and Flor¬
ida. Mr. Stetson spent his early
boyhood days in Macon, Ga., and
is well acquainted throughout the
the South
Chair¬
Banking
Commerce Club.
President
Harold H. Sherwood,
Sherwood
of
Refining
Company,
Inc., and Edward F. O'Neill, asso¬
ciated with Geo. M. Brewster &
Lippincott,
Son, Inc., have been elected di¬
Vice-President of the
Bankers rectors of the Palisades Trust
Trust
Company of New York,
Company of Englewood, N. J.
died suddenly on March 10 at
Hobe Sound, Florida.
His home
It was announced on March 7
was
in New York at 1040 Park
that the boards of directors of
Avenue. He 'was born in 1891 in
the Broad Street Trust Company
" He was graduated
from
Yale University
in 1934
where he was a member of Chi
Psi Fraternity and the Senior So¬
ciety of Skull and Bones. After
graduation, Mr. Stetson became
connected with the Citizens and
Southern National Bank of Sav¬
annah and Macon as an Assistant
Cashier and resigned to take a po¬
sition with Brown Brothers Harriman & Company where he was
until he was commissioned an En¬
sign in the United States Naval
Reserve, He served for three and
one-half years, attaining the rank
entire South.
Jackson
William
Findlay, Ohio. He was graduated
from the Hotchkiss School in 1910
and from Yale
graduation
of the two institu¬
tions.
The proposed merger is
subject to the approval of share¬
for the merger
President of the Lip¬
holders of the two banks at spe¬
pincott Glass Company, which po¬
sition he held until joining the
Bankers Trust Company in 1924.
He remained with the Bankers
Trust Company until the time of
his death and was in charge of the
Credit and Security Research De¬
of Lt. Commander.
the City Com¬
vacancy on
R.
Walter
Frame, President of
National
Waukesha
Bank,
Waukesha, Wise., died pri Feb. 21;
he was 74 years old. Mr. Frame,
prominent in Waukesa
affairs, became President of the
bank in 1938.
According to the
Milwaukee "Journal," in addition
to his duties at the bank, he was
a director of the Waukesha Motor
who
was
Co., and Alloy Products, a
Northwestern
of the
Sugar Council in N. Y.
Formation of the United States
Cuban Sugar Council
of sugar
companies
by a group
owning or
operating properties in Cuba was
announced
Keiser, Chairman of the Coun¬
cil, who is President of The Cuban
American Sugar Company and an
executive of other sugar enter¬
prises. The primary objective of
the new organization, it is an¬
nounced, is to "assure a continu¬
ing supply of sugar for the Ameri¬
Co., treasurer of the
College board of trustees.
Stockholders
Bank
of
United
Carroll
of two
shares of capital
the Broad
Street Trust
stock of
Company
capital stock of
Chestnut Hill Title & Trust Com¬
for each share of
Consummation of the pro¬
posed merger would bring to¬
gether two institutions, which at
Dec. 31, 1945, had combined assets
of approximately $32,000,000. Un¬
der the proposed merger plan the
present office of the Chestnut Hill
Title & Trust Company would be
maintained as the Chestnut Hill
pany.
States market."
Another
onstrate the value of
dem¬
close rela¬
a
tionship between the United States
and Cuba in
approved the increase in
capital structure of the bank rec¬
ommended
by the directors on
Feb. 20. The increase which brings
March 4,
capital to $1,000,000 and sur¬
plus to $1,000,000 and
plan of merger of the two
institutions calls for the exchange
adequate
into the
an
trustee objective of the Council is to
the
Liberty
Dallas, Tex., on
the
sugar
Cuban
of
flow
reasonable
a
price by maintaining
of
meetings which will be held
at
consumer
can
Life Insur¬
ance
State
March 7 by David
on
M.
date to be made known later.
a
The
Company.
Eagle Star Insurance
a
mission."
at
Finance
the
filled
of one year when he
cial
He was a member of
Committee of the
partment.
Formation of Cuban
&
Company of Philadelphia
have unanimously approved plans
from
Yale
he entered
business with
Hallgarten & Company and in
1918 became
the exception
Trust
University in 1914.
his
Following
Title
Hill
Chestnut
the
and
was
uated from Wittenberg
the
necticut.
of the Committee on
of the Foreign
city
solicitor of
Ohio. # He was grad¬
College in
1896 and admitted to the bar in
1898.
Since 1918 he has been a
member of the Civil Service Com¬
mission of East Cleveland, with
he
1909
Mansfield,
Savings Bank Association of Con¬
Mr. Howard was
Trust Co.
man
International
which later merged
Continental Bank &
Co.,
Trust
son,
Jr., as an Assistant VicePresident, assuming his duties as
of March 11. He will be associ¬
ated with the bank's business in
outstanding pre¬
,
Charles
the Chemical
additional com¬
shares at par $25 and to re¬
mon
Thursday, March 14, 1946
FINANCIAL CHRONICLE
undivided
profits to about $200,000, will be
brought about by the sale of an
12,500 shares of stock
$40 per share. This action will
increase the number of shares out¬
additional
at
standing to 50,000 with a par value
of $20,
said the Dallas "Times
Herald."
promoting trade be¬
tween the two countries;
Pointing
natural
that
out
Cuba
is
a
of sugar,
Mr. Keiser
said, "If the sugar trade between
source
the two countries
sounder
a
be put upon
can
basis, instead of being
subjected to the drastic fluctua-*
tions of past years, no one will
need
to
fear a sugar shortage,
even
in war-time, and economic
conditions
both
in
be benefited. This
without
that
countries will
can
be achieved
losing sight of the fact
the
domestic
and
insular
industry is also an estab¬
part of the United States
economy." He also stated in part:
sugar
lished
"The Council is advocating a
The Board of Governors of the
The Albany "Times Union" an¬
of the
Federal
Reserve
System
an¬
program which will enable sugar
Bank of nounced on March 6 that Douglas
nounced
that on March 1, the producers in Cuba to plan intelli¬
the Manhattan Company of New W. Olcott succeeds his uncle, Rob¬
American
Trust
Company, San gently in advance and provide the
York on March 7, F. Abbot Good¬ ert Olcott, as President of the
Mechanics and Farmers Bank of
Francisco,
Calif,
absorbed the United States with enough sugar
hue, President,
announced the
Napa Bank of Commerce of Napa, to fill the gap between consump¬
election of Alexander McGray as Albany, N. Y., in a reorganization
an Assistant Secretary.
Mr. Mc¬ announced on March 5 which pro¬ office of the Broad Street Trust Calif. In connection with the ab¬ tion and present production. An
sorption a branch was established agricultural enterprise cannot ad¬
Gray, who is a graduate of Cor¬ motes five other bank officers. Company.
at Napa.
nell University, returns to
just itself to abrupt changes in the
the Retirement of two bank officers
market.
It is not an assembly line
Bank after five years of service after long service also was re¬
It is learned from the Philadel¬
to be halted or started by turning
Robert Olcott, President
in the U. S. Army where he was vealed.
Ludwig Schiff on Feb. 19, was
phia "Inquirer" of March 6 that
a
Major with the Procurement since 1920, becomes Chairman of completion of the recapitalization elected to the Board of Directors a switch. This is particularly true
of sugar cane where - a planting
Division in France. He resumes the Board of Trustees, a newly
plan of the Industrial Trust Com¬ of the Farmers & Merchants Na¬
his position as head of the Bank's created post, as his nephew moves
tional Bank of Los Angeles, Calif. program must be initiated one or
pany of Philadelphia through the
two years in advance of cutting,
Legal Department.
up from the post of Vice-Presi¬
issuance
of
130,000
additional
Following
meeting
a
Board of Directors of the
dent and Trust Officer.
The
Board
United
States
York
New
Trustees
of
Trust
the
of
Company of
declared la
recently
regular £ quarterly
dividend
of
$8.75 a share on the capital stock,
payable April 1, 1946, to stock¬
holders of record
of
March
business
the" close
of
as
A
15.
stock
dividend
of 100% was paid on
27, 1945, to the stockholders
of the trust company of record on
Dec. 10, 1945. This dividend was
effected by transferring $2,000,000 from surplus to capital, in¬
creasing the latter figure from
$2,000,000 to $4,000,000.
Dec.
The
with
since
bank
the
been
From
has
President
new
1924.
Albany "Times Union" we
also quote:
"Retiring as officers are Clar¬
ence
W.
Stevens, former VicePresident and Cashier, who has
the
bank,
Cash¬
ier, who has 54 years' service. Mr.
60 years of service with the
and Ira F. Jagger, Assistant
continues
Stevens
director
a
as
the board.
"Five other promotions from the
staff announced by the Board of
and
as
secretary
Directors
Johnson, with the
elected Assistant
H.
bank since 1924,
"James E. Finegan, Jr., has been
Vice-Presi¬
dent of The Manhattan Savings
Bank of New York, Willard K.
Denton, President, announced on
March 11. Mr. Finegan, who had
been associated with the Brooklyn
Trust Company since
1934, re¬
signed as Assistant Secretary of
that institution to accept the new
appointment. Born in New York
City 38 years ago, Mr. Finegan
was graduated from Union
Col¬
lege, New York University and
Brooklyn Law School. Before his
employment with the Brooklyn
Trust Company he was associated
appointed
with
the
Assistant
Chase
National
Bank
and
second
Title
Land
Co.,
its de¬
Bank & Trust
of Philadelphia reports to
positors that assets increased from
$47,223,000 Dec. 31, 1940, to $88,682,000 Dec. 31, 1945, while nor¬
deposits, excluding U. S. Gov¬
deposits, rose from $23,767,000 Dec. 31, 1940, to $59,913,000 Dec. 31, 1945.
mal
Vice-President.
"Harry F. Ebel, with the bank
since 1912, elected Cashier.
"Charles A. Schneider, with
the
Cashier.
"T. Gardner Day, with the bank
since 1923, elected Trust Officer.
"Lawrence W. Ebel, with the
bank since 1918, elected Assistant
bank since 1918, Assistant
Trust Officer."
The
Griswold
as
Vice-President of the
Connecticut River Banking Com¬
pany of Hartford, Conn.,
the post made vacant by
ick F. Fisher, who retired
1943,
uary,
"Rights" to buy new stock of
Riggs National Bank of Washing¬
ton, D. C., expired on Feb. 27, it
is learned from the Washington
"Post" of Feb. 28,
to take
Freder¬
in Jan¬
announced on
which also had
the following to say:
"Since their appearance on
over-the-counter
the
about
listing on
market
and their later
Dec. 11
appointment of Donald R.
Andrew
John
man
the Washington Stock Exchange
trading has been brisk. Bid price
yesterday was $23 each, with none
offered. There were no sales.
'rights' permitted holders
Riggs stock at $300 a
share. Originally they were issued
in connection with an increase in
"The
to
buy
new
McLeod,
of the Board
Chair¬
of Director of
Scotia, died on
76. Associ¬
ated Press advices from Victoria,
the Bank of Nova
March 5 at the age of
B.
C., March 8 stated:
and
costs
can
be
recovered
only
by harvesting more than one crop,
*
"The benefits of
industry in Cuba
healthy sugar
extend beyond
a
of adequate supply.
For the United States, it means a
the
assurance
Summerside, Prince larger market in Cuba for food¬
Mr.
McLeod stuffs, textiles and manufactured
For
joined the bank on Feb. 1, 1887, products from this country.
and had served as Manager at Cuba, it means the employment of
Harbor
Grace, Nfld.;
Assistant hundreds of thousands of workers,
Manager at Chicago and Manager general commercial activity, and
better economic conditions."
at St. John's, Nfld., Boston, Ha¬
Offices of the Council are being
vana, Cuba, and Chicago. He was
appointed Chief Superintendent of established at 136 Front Street,
New York City. Richard N. Co well
branches in 1913, Assistant Gener¬
al Manager in 1923, Vice-Presi¬ is Secretary of the new organiza¬
dent in 1927 and President in 1934, tion.
Companies affiliated with
holding that post for more than the Council include: Caribbean;
10 years.
Sugar Company, Central Violeta
"Mr.
McLeod also had been Sugar Company, Cuban Atlantic
President of the Canadian Bank¬ Sugar Company, Fidelity Sugar
ers'
Association, Vice-President Company, Guantanamo Sugar
and Director of the National Trust Company, Manati Sugar Company,
Sugar Company,
Company, director of the Canada New Niquero
Life Assurance Company, Toronto Punta Alegre Sugar Corporation,.
Tanamo
Sugar
Company,
The
Savings and Loan Company and
Central Canada Loan and Savings American Sugar Refining Com¬
pany, The'Cuban American Sugar
Company.
Company, The Francisco Sugar
The Bank of Australia after Company, Tuinucu Sugar Com¬
pany, Vertientes-Camaguey Sugar
making a transfer to the credit of
contingencies
account,
out
of Company.
at
"Born
Edward
ernment
are:
"Russell
of
preferreds was
announced by the company. As of
March 4, capitalization consisted
of $1,091,125 common and $655,965 surplus and undivided profits
for total of $1,747,090.
shares common and retirement
first
which
Island,
account
bad and
provision for all
doubtful debts has been
of
tion of income tax, as against 6%
National Bank made, and after providing for for the
previous year. The net re¬
Dominion and United Kingdom
ant," which also said: ; £
$5,000,000. The
"Mr.
Griswold was a junior recapitalization provided for the taxation on the profits for the sult, however, after applying the
reports that the profits provisions of Section 52 Finance
partner of the Investment firm of payment of a stock dividend of year,
Conning and Company before en¬ $1,000,000 and the sale of 10,000 shown by the profit and loss ac¬ (No. 2) Act 1945, which requires
tering the Travelers Bank and additional shares at $300 a share. count for the year to 15th Octo¬ that U. K.
income tax shall be de¬
Trust Company as Vice-President Holders were given the right to ber last, including £ 237,504. 5s.9d.
ducted at the rate of 10s/- in the
in
1941.
He began his banking purchase one new share for each brought forward from the previ¬
ous year, enable the directors to
career here with the State Bank
three old shares."
£, instead of, as hitherto, at 2
and Trust Company in 1915.
declare a final dividend of 5s/- rate arrived at after allowance foi
In
National Union Bank of New York
the
and continued with it when it was
Company.
merged with the National Bank of
Commerce.
of the Windsor Trust
and the Prudence Company.
■
i
March 7 by the Hartford "Cour-
•
Trust
Co.
of New
York, died
suddenly at his home id .Brook*
lyn on March 6. Mr.;Howard; ivho
64 years old, was a graduate
Phillips Exeter Academy. He
began his banking career with the
was
Later he
was
office of the
of
New
with the London
Guaranty Trust Co.
York
and
the
bank's
Hong Kong, Shanghai and Manila
offices.
He
was
ternational
their
Manila
capital
of
Riggs
from $3,000,000 to
Cilius L. Howard, Vice-Presi¬
dent in charge of the foreign de¬
partment of the Continental Bank
&
was
also with the In¬
Banking
Corp
in
office, for a time
Returning to New York, he
was
1945 he
was
elected
Travelers
-The
a
Bank
and
He is also
Hartford
director of
a
Trust
director
Company.
"Courant"
of
March 6 reported that the stock¬
holders of the Bristol Bank and
G. M.
Cummings, chief counsel
Trust Co., of
Cleveland, Ohio, and a member of
its executive committee, retired
on pension March 1, after 33 years
of
of
the
Cleveland
service
with
the
bank.
The
Cleveland "Plain Dealer" indicat¬
recommendations of directors that
ing this in its issue of March 3,
also said in part:
"Mr.
Cummings
joined
the
Cleveland Trust Co. in 1913, when
the
he left the law firm of Blandin,
Trust Company of Bristol, Conn.,
at a special meeting approved the
capital of
creased from
the
bank
be
in¬
$500,000 to $600,000 Hogsett and Gum.
From 1905 to
per
tax
share (5% actual) less income
at the full standard rate of
10s/- in the £, payable on 29th
March next to proprietors regis¬
books of the bank at
close of business on 4th March. In
announcing this on Feb. 21 the
tered in the
bank
said:
" *
"The dividend now
announced,
Dominion income tax
proximately the
"The
relief, is
fund
reserve
ap¬
same.
remains
al
£2,500,000 and the currency re¬
serve
at
£2,000,000.
profit for the
6s.
lOd.
year was
(last
year
The
nei
£200,666
£195,864.
9s
together with that paid on 28th 5d.) and £246,920. 12s. 7d. wil
September last, represents a dis¬ be carried forward to the nexl
tribution for the year at the rate
r>f 71rvAr annum
before deduc- account."
.
..
;
...i,
@FedFRASER