The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MAR17J344
Final
In
YEARS
OVER 100
ESTABLISHED
Edition
:tion
2 Sections-Section
]
ommetciai an
TfNT T?
JL
JLj JLji
Keg. 17. S.
Volume
Electronic ^Master
Some Factors In The
Mind" Saves Money
Through the design and creation
have
You
bestowed
a
me
upon
signal honor in asking me to
an electronic ''master mind" speak, on this anniversary occasion.
I fully understand that this
employing 126 vacuum tubes to honor carries with it a grave responsibility, for organizations such
Signal Corps radio ap¬ as yours have far more significance and far greater obligations than
paratus, Philco Corporation engi¬ the merely social. I am equally mindful that in speaking to you, I am
neers saved 144,000 manhours of
speaking to a distinguished group of that great body of our citizenry
! calibrate
year
with other
and,
stock market has moved within a close
range.
How soon .will the market get out of its present rut? Will
stocks have a tendency to move sidewise, slide off, or can investors
expect a decided advance? I am definitely bullish for the long-term.
At the moment, however, the market is hesitatingly awaiting the
first
part of January the
it
sibleU
to > re¬
pos-^
the Continent.
cost
the
duce
this
of
and
ex¬
perience, must
take
an
im¬
Invasion
WPB Chairman Advocates Reduced
place
Regulation in Peace-Time Economy
ing
one
portant
equips
type of
ment
in
the
future
t the
of
this
coun¬
to
Government
whether
try,
$1,170,000
1943, it was
announced by
by
we
in
left j
t y ne
,
who
Presi¬
letter
stockholders.
ufacture of
highly pre¬
cise
John
the
are
the
equity to the
people, .the
guardians
of
the peace and
"Intheman-
.
ele-^
to
dispensers
of
justice
and
to
,
You
are
Bench
Corporation,
a
go
-
vated
dent of Philco
in
go
or
right.
Ballan-!
John
shall
J.
Clark, Jr.
Reuben
measur-
order
the
Ballantyne
of
ing i n s t r upur sbciety.
You who are of the
'
•
ments, such as the Signal Corps
frequency meter, it has heretofore
*Ari
address before
the Los
'
-
^
(Continued on page 1115)
k TMs Issue fpl
.
.
General index on page 1120.
the
presidency of
Christ
Jesus
of
Church
of
Latter-day Saints; and Chairman
of the Executive Committee and
Director
of
Foreign Bondholders
Protective Council, Incj
Underwriters
(Continued
on page
1110)
that
of
lies
"we
dar£ not allow
the^^merican
quickly to find employ¬
other
war
industries,
they
are
bady needed.
Nevertheless, in certain local situ¬
ations there may be some man¬
power
sary
for
felt
being
ian
war
consumers^want. %
"Just
as
Dealers
.
.•.p,;>.
■
.•
■.. to
.
and
Mr.
Nelson
"The
said:
•
Geneva
25 Broad St., New
;; j
Rep.
Chicago
•
...
an
York 4, N. Y.
Cleveland
facts
are
is
To all intent, the
Germany
In the end, how¬
an
invasion.
it will be the man with the
gun who will do the job.
How
many of these spearheads will be
thrown
back
is unknown.
The
ever,
This
be settled
High Command.
'
time factor is also unknown.
last may not now even
upon
by
our
the necessary troops
equipment are being rapidly
The day will surely come
when orders will be given for the
However,
and
massed.
advance.
We
can
expect more ac¬
tion in the stock market one way
or
another when this takes place,
(Continued on page 1103)
v
the
(Continued on page 1100)
iv;.
chase
OF THE CITY OF NEW
YORK
\
64 Wall Street, New
York 5
PHILADELPHIA
Albany
Buffalo
Pittsburgh
Williamsport
Troy
Syracuse
Dallas
DEALERS
AUTHORIZED
SECURITIES
BE
MAY
from
■
•
HUGH W. LONG and COMPANY
INCORFORATie
6)4 SO. SPRING ST
IS EXCHANGE PLACE
JERSEY CITY
.
service with Chase
I
and Dealers
correspondent
FROM
OBTAINED
Established 1927
BOSTON
;
LOS ANGELES
Hardy & Co.
Members New
Members New
facilities
York Stock Exchange
York Curb Exchange
Member
New York 4
30 Broad St.
.
Tele. NY 1-733
Tel. DIgby 4-7800
Federal Deposit Insurance
Corporation
kssss
Purolator
in active and inactive
Over 'The - Counter
New
Products, Inc.
Federal Machine and
BOND
BROKERS
England
Public Service Co.
ALL ISSUES
Welder Co.
Securities.
Analysis upon Request
International
'■■
■
Detrola Corp.
MEMBERS NEW YORK
C9
Kobbe, Gearhart & Co.
INCORPORATED
STOCK EXCHANGE
Members
14 Wall ST., New
York 5, N. Y.
N.
Y.
Security
45 Nassau Street
Dealers
Ass'n
New York 5
REYNOLDS & CO.
Members
120
New
York Stock Exchange
Broadway, New York 5, N. Y.
Telephone:
TELEPHONE-RECTOR 2-6300
p
Broaden your customer
Service
Actual Trading Markets, always
BULL, HOLDEN &
that
invasion
accelerated bombing of
Bond Brokerage
or
'"Teletype NY 1-210
2-0600
is
factor
Babson
in January, 1942, many
for Banks) Brokers
R.HJohnson & Co.
INVESTMENT
HAnover
W.
national bank
PROSPECTUS
Stock Exchange
other Exchanges
London
Roger
your
request
on
Hirscli, Lilienthal & Co.
V:
The
only apparent
v
Analysis
Members New York
uncer¬
tainties.
economy
| COMPANY, INC. |
•;p.ppyf:•?;
into
Donald M. Nelson
people could not understand why
the Government did not wipe out
is out
of kilter." Continuing his remarks, the civilian economy, so there are
when
Common Stock
■
industrial
permit
to
plants to use available resources
in making products that our civil¬
this
of
available, if only temporar¬
ily; there will be facilities avail¬
able, and there will be materials
available.
Right now pressure is
neces¬
kind
in
where
become unbal-
scale
able
be
ment
to
economy
war
ing it possible to close down some
war
factories.
The > workers of
those factories in most cases will
ahead/' he declared,
Reserves of certain types
material are already mak¬
plain.
the. pe¬
HOTELS STATLER
-
Norway. Here,
again, we run
will take place.
paramount.
Distributors
-
Northern
France and at
Washington, D. C., on March 8, Donald
M. Nelson, Chairman of the War Production Board, emphasized the
importance of maintaining an economic balance during the remainder
of the war and at the same time making war production needs
riod
name¬
ly, at the Bal¬
kans, at South¬
ern France, at
Industry at the Statler Hotel,
"In
inva¬
spear¬
heads,
Speaking at a dinner given by the Office of War Information
the War Advertising Council for Representatives of National
and
four
sion
Concerns
United States anced
Special material and items of
even
Interest with reference to dealer at the Third Hague Conference; temporarily.
General Counsel for United States
activities in the States of Con¬
You cannot
before
the
American
British
necticut, Michigan and * Missouri
get the kind of
Claims Commission; former Solic¬
will be found in this issue.
1
cooperation
itor of Department of State and
For Connecticut -■ and Michigan
you need, you
Under-Secretary of State of the
cannot pro¬
see
page 1098; Missouri on page
United
States;
author
of the
duce
on
the
1099.
Memorandum on the Monroe Doc¬
of the first
of
more
consist
apt to
Nelson Declares War Production
M.
Comm. to represent
trine;
The "second
Needs
Remain Paramount, But Civilian Output Will Be
Expanded Gradually, If Possible—Avers Identical Treat¬
ment Cannot Be Given To All Competitive Civilian
Donald
i
Summary
.front" is
.
Angeles
Bar
Association,
Los
Angeles, Calif., last month. ; Mr,;
Clerk is a recognized authority on
international law; was Chairman
of
the
American
Preparatory
of
invasion
of their train,
made
the
FLORID A—Since the slight rise during
because^
who,
economies,
PARK,
BABSON
fOf
last
Copy
a
Pending Event
To Mark Time
J. REUBEN CLARK, JR.*
By
Cents
60
Stock Market Awaits Invasion--
Proposed
Post-War International Pattern
& Labor Man Hours
labor
Price
York, N. Y., Thursday, March 16, 1944
New
Number 4264
159
Pat. Office
Tel.
REctor 2-3600
Philadelphia
Teletype N. Y. 1-576
Telephone'
Enterprise 6016
-
Bell
-
HMT SMITH It CO.
IRA HAUPT&CO,
Members
New
York Security
52 WILLIAM ST.,
Bell
s'.
Dealers Assn.
Y. 5
HAnover 2-0980
Teletype NY
1-395
REctor 2-7400
Teletype NY 1-635
New York
Montreal
Toronto
Members of
Principal Exchanges
111 Broadway, N. Y.
REctor 2-3100
6
Teletype NY 1-1920
in:
-Trading Market»
Com.
Pfd. &
Old
United Cigar
Birmingham Elec. 6%
Botany Pfd. & Common
CANADIAN INDUSTRIALS
Birmingham Elec. 1%
Remington Arms
CANADIAN BANKS
Whelan
Cyanamid Pfd.
American
Markets in U. S. FUNDS for
We Maintain Active
Nu-Enamel Corp.
Walworth Pfd.
Common
CANADIAN UTILITIES
Harrington & Richardson
York
New
Members N, Y, Stock Exchange
Pi., N.Y. 5 HA
40 Exchange
Ass'n
Security Dealers
2-2772
Telephone
New
New
York Stock Exchange,
York Curb Exchange
Tel. REctor
New Orleans, La. - Birmingham, Ala.
Direct wires to
our
branch offices
2-7815
Mayflower Hotel, Com.
Pittsburgh Hotel 5's, '62 & '67
Mitchell & Companij
Members Baltimore Stock Exchange
120 Broadway,
Of The Future Is Due To Loss
Caused By Paternalistic Gov¬
ernmental Policies.
Believes Individual Initiative And
Self-Reliance Can Be Restored Only By An Expanding
Inc., 63 Wall St., New York. City,'
was elected a director of the company
at
the
Economy. Urges Unlocking America's Economic Doors
So "We Can Make The Days Ahead Of Us The Greatest
nouncement
Mr. Willkie Declares Fear
Of Individual Self-Reliance
to
Voto^
Mr. Be
Savoy Plaza
points out that
as a people we
3-6s, 1956
have
done
well with our
efforts,
war
United Cigar Whelan
from the mir¬
of
acle
a
pro¬
duction which
♦Traded
N.
on
Exchange
Curb
Y.
endur¬
of dislo¬
cated and reg¬
lives.
imented
But he finds
among
day
American 6as & Power
Wendell
Willkie
Byrndun Corporation
Hooker Electrochemical
is re¬
laxed, there, will be grave danger
and
fear.
him:
fear
"The
disorder,
into
collapsing
our
social strife.
has brought us
and
civil
That, whereas war
the com¬
ing peace may bring despair."
In other words, the fear that is
growing upon us is a fear of the
hope, or at least courage,
in economics and a so-
unknown
Mn address
delivered
bef^J| tke
Hampshire Good Roads'As¬
sociation at Concord, N. H. March
New
that, terrible as the war is. the 9, 1944.
(Continued on.page
coming peace'will make these war k
1118)
<
J
Indiana Limestone
Income 6s, 1952
Common
&
Preferred
In Brief
H. G. BRUMS & CO.
Street, New York 5
20 Pine
Telephone: WHitehall
Bell
Teletype
NY
3-1223
1-1843
as
Cities Service Bonds
probably be about the
year. However, the
nounced
(All Issues)
vailed
3%'s&4's, '78
Equitable Office Bldg.
■
selectivity among indi¬
that has pre¬
the war should
continue and, if anything, might
be even greater than in the past.
Trinity Building
The
3's, '49
during
in
production in a
industries : declined,
1943
of
number
stayed about the same or rose
slightly, and relatively few indus¬
tries showed sharp gains.
Last
year
the restrictions in the
out¬
non-essential indus¬
1943 in Retrospect
tries became even greater than
in 1942, while armament product
year 1943 was one of slow¬
ly
rising activity. Industrial pro¬
tion
continued to rise. During the
of 1943, production of
certain types of armaments was
curtailed.
In 1943 the only im¬
in
portant industries that showed
sharp
increases
in production
were
machinery, transportation
duction
the
at
end
of
the. year
only about 10% higher than
beginning of the year, and
the change in activity by indus¬
tries was much less uniform than
was
SreeTtiecmdComparvu
Members
N.
Y. Security Dealers
37 Wall St., N. Yi 5
Teletypes—NY
Assn.
Hanover 2-4850
1-1126 & 1127
Trading Markets
in
been
1941
and
1942.
In
those years
production was rising in nearly
every industry and many indus¬
tries showed sharp gains, while
FASHION PARK,
(including ships ; and
metal fabri(Continued on page 1104)
equipment
aircraft), non-ferrous
FASHION PARK,
Industrial
Punta
Inc.
Mr.
Teletype NY 1-609
Simons, Unburn & Co.
Members New York Stock Exchange
25 Broad
St., New York 4, N. Y.
HAnover 2-0600
Tele. NY 1-210
Preferreds
Common
Harriman
Bldg. .6s, 1957
business in 1925,
the National City
Frank C.Masterson & Co.
ment
banking
when he joined
Prior to that he had
served with the Wright Aero¬
nautical Corporation. Mr. Wood-
Company.;
all served in France in
Members New
64
York Curb Exchange
NEW YORK 5
WALL ST.
HAnover 2-9470
Teletype NY 1-1140
World War
in the Seventh
FieldArtillery, 1st Division.
I
Captain
a
as
•
Kaiser & Go. To lo
NY
FRANCISCO,
.Exchange
when Leland M.
York
March
on
*
'Gary 5s, 1948
Missouri Pacific 5V^s,
CALIF. —
Kaiser & Co., Russ Building, will
become members of the New York
Stock
TRADING MARKETS
Chicago Mil. &
Exchange lessors
Serials
Seaboard Air Line 5s,
1931
St. Louis-San Fran. 6s,
193$
23,
Kaiser acquires
Stock Exchange
BUCKLEY BROTHERS
Members New York Stock
'
Pxnhanne
63 Wail Street, New
WHitehall 3Direct Wires to Philadelphia St los Angeies
partners.
WE MAKE BIDS
Island
David Cerf At Parns
friends in the invest¬
banking circles of David F.
ON BONDS WITH
The many
ment
Cerf, Sales Manager of Floyd D.
Cerf Company will be interested
to learn that he is presently sta¬
tioned at the Marine Corps Base
at'Parris Island, South
Coupons Missing
OR
Mutilated
Carolina.
Seligman, Lubetkiii Adds
Russell To Trading Staff
C.
Edward
the trading
man,
Russell has . joined
department of Selig¬
Lubetkin & Co., 41
C.F. de Willers & Co.
Members New York
REctor 2-7634
74
N.
Y.
Water Service,
Brook
Pittsburgh Railways
Pfd.
Fashion Park* Inc.
New York Water Service,
Escrow
Pfd. f
Jonas & Naumburg
U. S. Radiator Corp.
Receipts
HA 2-2400
Teletype NY 1-376-377
Private
BERWALD & CO.
Security Dealers Ass'n
Trinity Place, N. Y. 6
to Buffalo - Cleveland
Pittsburgh - St. Louis
Successors to
Robert
30 Pine
«
Member
C.
Mayer
&
Co., Inc.
St., N. Y., DIgby
Bell
Wires
Detroit
N.Y,
Teletype NY 1-2361
Broad
9
Troster, Curries Summers
Security Dealers Assn.
120 Broadway, N, Y. 5,
St., New York City.
Haytian
Members
G. A. Saxton & Co., Inc.
170 PINE ST., N. Y. 5 WHitehall 4-4970 I
graduate of
Preferred
STOCKS & BONDS
&
Indiana Gas & Chemical
Spokane International R. R.
*
Debentures
5Vat %
»Dealt in on New York Curb Exchange
Alegre
Vertientes
FASHION PARK, Inc.
Bought—Sold—Quoted
&
Common
University, Class of 1917,
Woodall entered the invest¬
Sewanee
Scranton Spring
Inc.
Common
Public Utility
June, 1943.
A
*5%
since
Pres.
Harding C. Woodall
Vice-
a
Central States Elec. (Va.)
latter part
Deb. 5s, 1963
Railroad
the
others
at the
5's, '45 "A"
,
in
buying de¬
partment since
1935, and has
the. New
put of many
5's, '52
Memphis Street Railway
pro¬
securities
vidual
Associated Gas & Electric
same^
Teletype NY 1-1919
as¬
has been rising
last
WHitehall 4-8120
Bell System
with
with practically no interruption membership of the late J. Clark
for four years. It is quite likely that the year 1944 will prove to be the Moore, Jr.
Partners in the firm are Leland
peak and that some time during the year a decline will start. Under
normal peace conditions such a decline would be accompanied by M. Kaiser and Edwin R. Foley,
lower corporate earnings and security prices, but under present con¬ general partners, and Walter D.
ditions, this may not be the case.
Earnings and dividends this year Heller .and Allen E. Meier, limited
Business activity
will
.
1944
The Outlook For
Struthers Weils
Members New York Curb Exchange
65 Broadway
i,
industrial
SAN
Common
Members New York Stock Exchange
Harriman
ization
society. That, once the
as a
Edward A. Purcell & Co.
Ripley organ¬
comparatively ef¬
a new
growing
I
quote
Common
to¬
us
scholar and
external discipline of war
disunity,
hu¬
good
ance
7-4070
System Teletype NY 1-1548
& Class A-
fective
the
Telephone COrtlandt
Common
of one purpose,
•
been
has
seem
of
mored
New York 5
31 Nassau Street
'
sociated
f
1
———;
to have been a time
of quiet, order and optimism.
That, whatever the war may have
done to us, it has kept us com¬
paratively united, comparatively
years
wrought to
York Curb Exchange
New
have
we
Vanderho@f & Robinson
Members
an¬
an
the
the editor
Common
Mr. Woodall
peace..
Bernard DeVoto, a distinguished
of "The Easy Chair" in Harper's Magazine.
American^ Utility Service
by Joseph P.
Ripley, Chair¬
days ago I read an
The article'was by
Laboratories^
ing, according
man.
few
Du Mont
meet¬
annual
We Have Ever Known".
A
Teletype N. Y. 1-1227
Preferred
Prior Pfd.
Harding C. Woodall, Vice-Presi¬
dent of Harriman Ripley & Co.,
article that contained a somewhat
startling conclusion, a conclusion that I reluctantly believe is true.
That is the conclusion: that America is afraid of the future, afraid of
N. Y, 5
WOrth 2-4230
Bell
Boston & Maine
Ripley
.
Coal, Com. & Pfd.
Eik Horn
Harriman
WILLKIE*
By WENDELL L.
Consolidated Mach. Tool Units
Bell
'
NY 1-1557
Woodall A Director Of
Realty, Pfd.
Bohack
.
Exchange
St., New York 4, N. Y.
HAnover 2-0700
BROADWAY, NEW YORK
120
America- Unafraid
Axton-Fi§her Tob. B
Bell
Members New York Stock
25 Broad
TELETYPE NY 1-423
BELL
.
Steiner,Rouse&Co.
Members
NEW YORK 6, N. Y.
Teletype NY •1-672
BArclay 7-0100
^
fr]C PONNELL & CO.
and Other Principal Exchanges
115 BROADWAY
''i V*'
r-'.U *'4 *,•*'.
Goodbody & Co.
Established 1920
I
.
Members
O'Gara Coal 5s, 1955
Warren Bros. Class "B" & "C"
CANADIAN MINES
KING & KING
Thursday, March 16, 1944
'
-
,
,
,
New Haven R. R.
..
''
& FINANCIAL CHRONICLE
THE COMMERCIAL
New
4-7900
Teletype NY 1-1790
York
Security
Dealers Ass'n
TRADING MARKETS •
©
T. J.
Members
INFORMATION
•
FEIBLEMAN & CO.
New
41 Broad
Orleans Stock Exchange
Street
BOwling Green
9-4433
New York 4
Tele. NY 1-493
Volume 159
The
Number
i
COMMERCIAL and
Reg.
U.
William
CHRONICLE
Patent Office
S.
B.
Dana
yield
the
obtainable
that
to
from
other
similar
issues,
the
ilCHTOSTfll
"
Heywood- Wakefield
,
COMMONWEALTH OF PENNSYLVANIA
AND COMPANY
TURNPIKE REVENUE 3%% BONDS
Company
Ralston Steel Gar
Publishers
25 Spr.uce Street,
1091
'
•
•►'.Comparing
FINANCIAL
'
'&
FINANCIAL CHRONICLE
TIIE COMMERCIAL
4254
New York 8
;
Due August 1, 1968
up
in
BEekpian 3-3341
Chicago Rwy. Equip.
.Herbert D. Selbert,
Editor and Publisher
look attractive at
Are
■
f
-
4 ' William: Dana Selbeft,
.
William
D.
Manager
Thursday, March
16,
1944
Published twice
a
week
(general
•
and
news
Vertientes
advertising issue)
and every
Offices:
1944
Reentered
by
Camag'y
135
S.
32
Salle
La
William
B.
Dana
Security Dealers
York
A Post-War
Ass'n
Board of Trade Bldg.
CHICAGO 4
Broadway
NEW YORK 4
Teletype CG
129
Does
MORTGAGE
Company
/
Lawyers Mortgage Co.
,i'
^
*
N. Y. Title & Mortgage
w
Co.,
Companies
Bank and Quotation Record—Mth. $20 yr.
yr.
NOTE—On account of the fluctuations
in the rate of exchange, remittances for
be
made
in
New
York
funds.
40 Wall
II
New
been
WHitehall 4-633C
St., N.Y. 5
Teletype
Bell
Exchange
Stock
York
1-2033
NY
tized
H
war
Access Of Small Business
To
their
for
Capital Markets
world.
national
a
dollars
or
—
At present, he is a contributing editor of
Monetary Policy—Editor.)
more
The Congress of the United States has
verse.
Small business will need equity
cuts
the
postwar
period.
in to the United
capital
States
Small concerns forced out of busi¬
econo¬
It
how
PH
in
of
is to the "com¬
so
much
con¬
in
business which
high places.
If small busi¬
ness
goes,
to
need
has been
expressed
capital
war production will
capital to reconvert to a
peacetime production. Moreover,
the last years have seen a sharp
falling off in the birth rate of
whom
cern
need
converted to
n"
ma
about
will
business
help them expand in competition
with larger firms. Those that have
small business
mon
help
Those that have managed to stay
vital the pres¬
ervation
to
in
by the war, will need capital
them reenter business.
ness
illus¬
trates
my.
P. H.
Lohman
big
except
to
the
become
economic
more
reward
Christian
we
39 Broadway
—
will
us
that all of
by the devil.
in
a
*Du Mont Laboratories
Bendix Home
Emerson Radio
Majestic Radio
'*Memo
be' taken
They mean the devil of another
depression. They fear the devils
of taxation, of renegotiation, de¬
Ill
to
World
number of
means
War
new
I
that similar
increasing
an
businesses will be
REctor 2-5288
established
after
Bartgis
Bros.
on page
Memorandum
'if'
on
Request
Est. 1926
n
r;
HtBlOB&lOM
170
Broadway
Bell System
COrtlandt 7-6190
Teletype NY 1-84
Eastern Sugar
organization is the NASD? Is the pro¬
members any real part of the NASD program?
What does the record
Associates
Haytian Corporation
Punta Alegre
disclose?
that certificate of incorporation to
true estimate of the nature of this group.
Is it by
avowal and its actions devoted to the interests of its
follow
up
if not most of the.
(Continued
.
argue
tection of its
a
Dealers Assn.
Broadway, New York, N. Y.
Bell System Teletype, N. Y. 1-2480
What kind of an
make
Security
Membership
promoting the welfare of its members.
that by inference this may be gathered
from the provisions, "To promote through cooperative effort
the investment banking and securities business . .
Why
leave so important a purpose, if it exists, to inference?
Let's
York
land
tion made of
can
Request
Members
New
significant that nowhere in the object and purpose
of the NASD certificate of incorporation is any men¬
One
on
J.F.Reilly&Co.
It is
clauses
N. Y.
Teletype NY 1-1203
have known, and
"5% Spread" Is Sellout Of NASD
.
that has made free American en-
QUOTED
INC.
of course,
of 135 billion
to solve all the
this/war. Much its own
capital needed membership, or is it a superfluous policing body?
will be in the form of high risk
arm of a totalitarian state, such as
to encourage and promote among members
was
the case in Germany and capital.
observance of Federal and State securities laws;"
The U. S. Department of Com¬
Italy. Out of the flexibility, the
Here is a colossal piece of impertinence.
Now, who is
Vigor, and the competition af¬ merce, among other governmental
(Continued on page 1117)
forded comes the constant spark agencies, has always recognized
business does not have any future
-
Metnbers New York Security Dealers Assn.
"Rule" And Ruin
business
SOLD
L J. GOLDWATER & CO!
enacted legislation to re¬
*An
address delivered before
of
milk
and
Walter D. Fuller
quire the former employer of the man called to service to reinstate
honey. They the Adcraft Club of Detroit on
him in his old job when his service has ended.
That is a laudable
dre
counting on radar, rocket March 10, 1944.
aim, but to be effective, Congress must now give attention to pre¬
(Continued on page 1116)
planes, jeeps, plastics, amazing
venting the disappearance of the employer. Small business in 1939
comprehended the employers and about 45% of the personnel of all
business. This
<♦>
1 1 v~:
shows how
terprise one of the great progres¬
sive forces in the, struggle of man
deep and how
for mastery of the physical, uni¬
far the small
problem
-
Complete Statistical Information
and,
income
They ex¬ pleted reserves, disrupted markets,
They fear we
pect to have competition, etc.
helicopters for will suffer all the tortures of the
wings and to damned, everlastingly.
I don't know in which group
dwell
ever¬
Time Magazine while on leave. He is also connected with New
York University, and is a member of Economists' National Com¬
on
gadgets
new
post¬
fice.
(Dr. Lohmann is Associate Professor of Economics at Miami Univer¬
mittee
much
living in these
days of suffer¬
ing and sacri¬
By PHILIPP H. LOIIMAN, Ph.D.
sity, Oxford, Ohio.
CERTIFICATES
Many
people problems of the hereafter of peace.
are
But there is another .groyp Of
ready to
believe it will people, equally self-sacrificing and
be like para¬ suffering, who fear that the post¬
dise, coming as war world will be the end of all
NASD 5% Profit Rule Threatens
*
the
Street, New York
BOUGHT
drama- $——1——
as
the
as
v
tip /in.
Telephone: WHitehall 4-S551
HAnover 2-8970
NewburgeiyLoeb &Co.
II Members
foreign subscriptfons and advertisements
must
and /get
us
New York 6,
One of these days this war is going to end.
None of us knows
when, but all of us know it is going to end in a complete and satis¬
fying victory for ourselves and our allies.
That is just as certain
as the melting of snows on the hillside in spring time.
Arid when that day comes we will findvourselves across the
tl threshhold and in the post-war world.
Nothing, in our times, has'
Bought—Sold—Quoted
Monthly Earnings Record—Mth... $20
Publishing Co. Says If Business
The Proper Sort Of Selling Job There Can Easily
By WALTER D. FULLER*
All local Title
Publications
Other
see
Capitalism
per
,a
those
labeled
are
TITLE COMPANY
Which Will Dissipate Worries About Our National Debt,
The High Level Of Taxation And The Threat Of State
Issued by
year; South and
Spain,
Mexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
M
about
that
bid"?
so,
Depression Can
Be A National Income Of 135 Billion Dollars Or More
CERTIFICATES
Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
f/•,£'
arms"
President Of The Curtis
ruary 25, 1942, at the post office at New
York, N. Y„ under the Act of March
B, 1879,
Canada, $27.50
Central
America,
in
bonds
99 Wall
PHILADELPHIA
Be Licked: Walter D. Fuller
Harrison 2075
DIgby 4-8640
Teletype NY 1-832, 834
'
of
If
YArnall&CO.
1528 WALNUT STREET
second-class matter Feb-.
as
3.35% to maturity and 2.85% to the optional period.
and
chips instead!
STRAUSS BROS.
Members New
St.,
Chicago 3, 111. (Telephone: State 0613),
in
charge of Fred H. Gray, Western
Representative;
1
Drapers'
Gardens,
London, E. C., England, c/o Edwards &
Smith,
•
Copyright
stocks
"up
Monday
(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
clearings, state and city news, etc.)
Other
you
"no
To net
Cuba Railroad
Thursday
every
106^4 and interest
Vicana Sugar
President
Riggs, Business
arms
(Callable August 1, 1947 at 104)
'
Sugar
Vertientes-Camaguey
DUNNES CO.
.
Members New York Security Dealers A3sn.
25
Broad St.; New York U, N. Y.
Tel. WHitehall 3-0272
1108)
of New York
of Los Angeles
Coca-Cola Bottling Co. of Chicago
-Cola Bottling Co. of St. Louis
ja-Cola Bottling Co.
-Cola Bottling Co.
American Cities
Power &
2.75
and
Light
3.00 Pfd.
-X-'
Memorandum
Pacific Goad
Request
Wyeth
BUCKLEY BROTHERS
Members New
1529
York Stock Exchange
Walnut St.,
Bell
NEW YORK
LOS ANGELES
N. Y. WHi 3-7253
Members Los Angeles Stock Exchange
Warrants
Pfd.
•
HoixRsseSTrsster
Co.
Philadelphia, Pa.
Teletype—- PH 265
Phila. RIT 4488
&
'Since 1893'
and Radio
Bottling Company
Red Rock Bottlers, Inc.
White Rock Mineral Springs 1st 7%
..
on
Panama Coca-Cola
SecubUiel
American Cable
j-
Established 1914
Members New York
74
C. E.
Security Dealers Association
Telephone:
BOwling Green 9-7400
•
;
v
.
•
.
y
.
v
Unterberg&Co.
Members New
Trinity Place, New York 6, N. Y.
York Security Dealers Assn.
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565
61
Teletype:
NY 1-375
Teletype NY 1-1666
THE COMMERCIAL & FINANCIAL
1092
We
of *
interested in offerings
are
-
^
"
.
V
CHRONICLE
POLLAK MANUFACTURING
...
:
High Grade
Public Utility
ACTUAL IKAMfiG
STOCK'
1943
$8.00
Assets
Net Quick
16.35
Book Value
Earnings
25 Broad Street. New York
Corporation
Wickwire Spencer Steel
Punta Alegre Sugar
Eastern
Telephone HAnover 2-4300
Teletype
Members New York Stock Exchange
NY 1-5
4.49
Dividends
Spencer Trask & Co.
& Stpd. Pfds.
Bos. & Me. Prior
CAPITAL
and Industrial
PREFERRED STOCKS
MARKETS
Thursday, March 16, 194.4
0.75
-
8%
share
Price per
Analytical discussion mailed
Moxie Com. & Pfd.
on request
Title Guarantee & Trust
"A"
*Du Mont Laboratories
Trading Markets
*CrowelI Collier Pub;
f
*P. R. Mallory
COLOMBIA
ARGENTINA
Consolidated Textile'
Polaroid
BOSTON
CRUTTENDEN & CO.
Stock Exchange
Members New York
t
.t
c
0_
C
11
»•
cv
209 South La Salle Street
Teletype
Chicago 35
_
.
.
Direct Private
Wires to—•
and Chicago Stock Exchange
Telephone
Art Metal Construction
East and
Chicago 4, Illinois
West Coasts
Remington Arms Co.
Instrument
A-.3./
v
■*
,v
»>.
Common Stock '7
}
Pfd.
V
du Pont,
Auto Car
Remington Arms
Bought—Sold—Quoted
Airlines
;
BANKERS BOND S
m
■,
Spin.
Airlines
Northeast
NorthropAircraft
Petroleum Heat <& Power
Rohr
f
Bought
LOUISVILLE 2, KENTUCKY
Sugar
Camaguey
Aircraft
Vertientes
Bell Teletype LS 186
:
Long Distance 238-9
Dr.
Vicana Sugar 6s
& Swasey
Appliances
Haloid
/.
.
..
Corp.
Tokheim
Tank &
Oil
Dallas Ry. &
Check
us
A
foreign exchange Was believed imminent
reported in Associated Press accounts from
on
confidence.
Illinois Power Div. Arr. and Com.
Amer.
Gas
Power
&
&
Electric
♦Central
Pub.
Southwest
.
Tel/'-
r
Pfd.
Conn. Light &
Power, i
Peoples Light & Poweir Pfd.
American Utility Service Pfd.
Elec.
Gas Pfd.
&
Util.
Iowa Southern
it was
Washington which also had the following to Say:
This belief grew following the disclosure that
tions have been in progress
Serv.
N. E. Pub. Serv. $6 & $7
Cons.
14,
March
on
25
Spruce
Com.
being ac¬
Russian delegation was
quainted with the so-called White
currency stabilization plan.
»
*.+)'.{
•
*
*
.
.
'
iL
.
described
as
a
the
Heretofore
Westinghouse
2
Park
Bid. 4s, 1948
Ave. 4'/2s, 1957
Ave.
&
2s
one
can)
and Keynes
and un¬
of gold.
(Ameri¬
White
(British) plans
have been at wide variance as to
should play a lead¬
subordinate role in bal¬
international
trade and
whether gold
3s
Equitable Office Bid. 5s, 1952
165 Broadway 4l/zs, 1958
Boston Metro> BIdg. ,3s, 5s, 1950
New Postal Service 5s, 1948
11
W. 42nd St. 4%s, 1953
50 Broadway 3s, 6s, 1946
ing or
ancing
.
Broadway
500
5th
Chic.,
Barclay
Ave.
Milw.
Missouri
Central
Frisco
6%s, 1949
& St. Paul Adj. 5s
4s, S'/^s, 5l/zs
R.
of
N.
J.
4s,
5s
4Y2s, 5s
N. W. 4%s
Baltimore & Ohio 4>/zS, 5s
Morris & Essex 4%s
Boston & Maine 4%s, 1970
4s,
Chicago,
director and
the
British
instead
ment
PHONE OR WIRE ORDERS
AT OUR EXPENSE
Request
Exchequer,
suggested
clearing house arrange¬
without original assets and
a
using a quota, system based
foreign trade volume. - 7 *-
together
it
However,
cans
as
at
was
that Russia, as a major gold
holder, regarded the White plan
as the more acceptable of the two.
120
.
to have clinched British
Security Dealers Assn.
BROADWAY, NEW YORK 5
Telephone
|REctor 2-8700
.
Direct
Teletype
.
NY 1-1288
Wires
to
BOSTON—HARTFORD—PHILA.
capitula¬
tion to American views.
Canada
already has drafted its
on
top-
one
for the
knowledge of
important.
Give
full information in first letter.
Post Office
Address Dept. 8-A,
26,
Trinity
Station,
New
York.
Request
ties
on
AVAILABLE
Philadelphia 2, Pa.
Bell Teletype
—
Experienced
PH 265
N. Y. WH 3-7253
in
man,
well versed
field,
the stock and bond
Also
and
familiar with the grain
commoditie$ business.
Draft exempt.
Available im¬
mediately. Can furnish excellent references.
military Training
du
new
St.,
Rhila. RIT 4488
assumed
his
Stock Exchange
Members New York Stock Exchange
1529 Walnut
v e r
He
CASHIER
BUCKLEY BROTHERS
Members Philadelphia
Vice-President of Doremus & Co.,
March
preliminary military
units have ceased their
Although
15.
training
activities in the metropolitan area,
-
This Russian attitude was believed
Y.
Memos
Box A. B.
•?,7
The Commercial & Financial
■
,
25
-■
^Chronicle
Spruce Street, New York 8, N, Y.
conceived
a
Wall Street man has
tensive> ex¬
a
perience in all
phases of ad-
drafted
plan to enable men about to be
to secure the advantage
vertising
indication
a
for New
Common & Preferred
President
of Doremus & Co., announces that
Charles C. Greene has been named
the same time.
known to the
well as to the Amerir
no
and
shares
man
William H. Long, Jr.,
of the recent talks brought
representatives of the three Pow¬
was
Warrants
Muskogee Company
Office
City
trust
Box
on
any
British
Members N.
Greene, DoremusV.-
that
ers
on
adviser to
requires
funds
South. Thorough
Corporation
Common &
an
economic
attractive group of
bond
and
stock
wholesale
York
Eastern
Heads Chicago
with
trust
We maintain markets in:
national
Harry D. White, Treasury mone¬
There
*Circular
world
Well established sponsor com¬
notch
$8,000,- a g e n
000,000 fund to be made up of charge
gold and local currency contribu¬ Chicago of¬
tions
of
participating
nations. fice, 208 South
Lord Keynes, Bank of England
La
Salle
St.
Pac.
R.
credit transactions.
tary expert, proposed
1956
2s,
PHILADELPHIA
consider
stabilization as well as
bank for reconstruction
currency
TWO WHOLESALE
REPRESENTATIVES
specialized
monetary conference to
a
minor
San Antonio
the
on
v
Y.
N.
%:
pany
agenda before the
State
Department issues formal
invitations
to
an
international
last
8,
Southwestern Securities,
>V ;&. *
Houston
talks said one
and development.
more
meeting was expected to
eliminate the final point at issue,
Anglo-American
related to the question
Seventh
a
An official who told of the new
& Suffolk Ltg. Pfd.
Queensboro Gas & Elec. Pfd.
Puget Sound Pr. & Lt.
♦Mass. Power & Lt. $2 Pfd.
United Lt. & Rys. W. I.
Nassau
870
while
authorities
British
with
Financial
York
•
DALLAS, TEXAS
parallel conversa¬
St.r New
preferred Stocks
RAUSCHER, PIERCE & CO.
here^
S 810
The Commercial, and
Chronicle
fund to stabilize post-war
Derby Cas
and
including
u
Box
Terminal 6% 1951
All Texas Utility
Early and complete agreement among Russian,*. British, American
arid Canadian treasury experts on a multi-blllionidcillar' goid-ba'sed,
man.
status
particulars
;
Stabilization Plan
Pump
Dearborn
Consolidated
11
calibre
draft
Pepper
Southern Union Gas Common
So'western Pub. Serv. Com. & Pfd.
Agreement Believed Near lit Monetary
r
777
♦Richardson
Harvill
compensa¬
■when available, in
Quoted
—
high
age,
Republic Insurance
Warner
Bendix Home
Sold
—-
Liberal
for
Give
DALLAS
KENTUCKY HOME LIFE BLDG.
18th FLOOR,
in
West,
tion and permanent opportu¬
nity
INCORPORATED
National Airlines
or
well-established
large,
business.
Teletype BS 424
Capitol 4330"
men
acquaintance
firm outside of the securities
MASS.
BOSTON 9,
♦Mid-Continent Airlines
Fine
dealer
with
HomseyCo.
Shawmut Bank Building
.
Magazine Repeating Razor
♦Great American Industries
Majestic Radio
with
■
East, Middle West,
Pollak Manufacturing
Berkshire
Opening exists for two
Stockyards Preferred'-7v
-i* *f
>{
i, >->'
United
Ashland Oil & Refining Company
and Pfd.
Triumph Explosives.
Export
CONTACT MAN
United Elastic Corporation
Botany Worsted "A"
American
DEALER
Bird & Son
Christiana Securities Co.
Ordnance
Hearst
1
^
Stromberg Carlson
Emerson Radio
Arden Farms Co.■""/
♦Merchants Distilling
♦General
Teletype BS 259
Y. Telephone HAnover 2-7914
N,
All Issues
Dearborn 0500
Auto
Mass.
Tel. CApitol 0425
PERU
CHILE
Maryland Casualty
*Long Bell Lumber
Loft Candy
United Cigar Whelan
Vicana Sugar
148 State Street, Boston,
RICA
COSTA
BRAZIL
ser¬
agency
vice
cording to an interesting memo¬
randum on the situation issued by
training, r This-includes
military drill and rifle shooting. Oilman, Moreland & Co., Penob¬
Building,
Detroit,
Mich.,
No obligations are involved.
The scot
members
of» the Detroit Stock
drills are free.. A ribminal fee
Copies of this memo¬
Will cover the expense of the am¬ Exchange.
munition used.
Those interested randum may be had from the
should
commtmic&te
with
the firm upon request.. 77,/,. >vV7j
of
in
and
the public re¬
lations
;
field.
was
He
for¬
merly Vice-President of Buchanan
&
Co.,
and
prior
to
that Vice-
President of Critchfield & Co.
is
a
such
"Chronicle"
Extension
at
BEekman
3^-3341,
12.
He
plan, strikingly similar to the ing Men's Post No. 38, American
latest White proposal.
Legion, one of the largest posts in
A Treasury official said he ex¬ the country. He is a graduate of
pected at least a couple more the University' of Chicago and a
Russo - American conversations, member of the Illinois bar. '
Perkins Co. In Boston '
(Special to The Financial
past commander of Advertis¬
Investment Opportunity
own
;
Stock of Great Lakes Terminal
Chronicle)
•
BOSTON, ; MASS. —Ralph
L.
Perkins will shortly open offices
at current here to engage in a general securi¬
offer an excep-7 ties business. Mr. Perkins in the
tional investment opportunity ac- past was with Maxwell & Co., Inc.
Warehouse
Company
levels appears to
Volume
1093
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4264
159
CANADIAN
*
'
.
.
WE ARE PLEASED TO ANNOUNCE
^SECURITIES'
THAT
5s,
HAVE SEEN ADMITTED TO OUR
AS GENERAL
A(
'
^
'
• -
»
\i
r
.L
'r''•
,
>
I
1
.
/
;
FIRM
that closes
the trade
PARTNERS
d
*
v
"
VJ +' i"r
(
'-V-
i
PFLU6FELbER; BANlPTON & RUST
J Members liew Yotk Stock Exchange
>
can
New York 6, N. Y.
61 Broadway
when
General Staff Proposed To
Advise Business
Anil Government On Economic Planning
New York University
Predicts That
Concentration Of Business Will Continue After The W ar
Reconstruction,
lus
need
say
have room to
the
after
a
deal becomes
Lawrence Portland Cement
Ohio Match
problem, let
a
that alone
cooperation between dealers
•'
'
can prove
'
v.
•
:
.
.
.
.
,
.
^
«.* ' V
J y *
Frederic H. Hatch & Co.
f
Incorporated
R. W.
Bell
Pressprich 8C Co.
68 WILLIAM
ness^organizations; im this country
will take after the war, Dr. Zur¬
cher expressed it is as his belief
that large-scale enterprises will
not only be those most likely to
made to miti¬
ef¬
the
gate
fects of recur-
>
be
business
d epressions
through the
ring
medium of
,
bureauc¬
repre¬
sentative of all
Dr.. A:
J.
Zurcher
in
population, and established on
basis
a
would
that
be
consonant
American institutions.
"If
we
not
do
want
the
vast,
interrelated,
high
pressure thing we call our econ¬
omy to get out of hand during the
long pull, if we want to achieve
complicated,
aims
which
for
set
we
have deliberately
ourselves,
then
there
is
institutional response
which we can logically make," Dr.
Zucher said. "That is, planning on
only
a
one
national scale. The stigma of so¬
cialism
be
and
lifted
totalitarianism
from
same
that
word.
must
Plan¬
and
conditions
V
PUBLIC. UTILITY,
;
AND
Dominican
INDUSTRIAL BONDS
INVESTMENT
Republic 5%$
STOCKS
•
WW*
■
"
.
Gude, Winmill & Co.
Members New York Stock Exchange
1 Wall St., NeW
York 5, Ni Y.
Teletype NY' l-f)55
DIgby 4-7060
ob¬
business combination. For in great
will require a
growing concentration of mana¬
gerial direction. Planning output,
markets and trade policies,
in the
of highly organized society
which we shall require if we are
kind
high level of ac¬
tivity, will be most ineffective if
such planning is left to a great
to operate at a
number of independent entrepre¬
To be effective it must be
neurs.
handled by each
branch of indus¬
acting as a Unit;; That will
big business. Except for the
fringes .of distribution , and the
try
mean
service
various
difficulty
real
it. will
activities
for
ticularly in those industrial
sec¬
trial sectors that do not have
was v
tion,
What
;
advocating \s a sort
general staff for our
economy with a really worthwhile
research, organization that could
act as a general planning, agency
for the kind of mixed economy
which we will have after this war.
am
of democratic
Its function would be neither leg¬
indeed
it need have no coercive power at
all.
Its aim would be to advise
islative nor administrative;
where'
other
we'
heading.
were
implications
can
one
draw from the statements coming
from
our
leading
navy is now
our
admirals
that
the largest in the
World and that it will be our duty
to
maintain
war
is
over.
perience
it
intact
when
the
Now if European ex¬
furnishes
this matter, it may
any
guide in
confidently be
predicted that such a trend will
magnify
the influences
favoring
LOS
&
ANGELES, CALIF.—Blyth
Franklin Shops
Co., Inc., 215 est Sixth Street,
an
Common & Pfd.
department
intimate connection with military
Mr. Lamon is well known in the
preparedness. If European exper¬
then there is no
municipal bond field throughout
the country. He was Vice-Presi¬
to suppose that our exper¬
dent of the Bankamerica Co., Los
ience be typical,
reason
ience will be otherwise."
Angeles, from
Discussing the future of demo¬
cratic institutions in this country,
Dr.; Zurcher said
that while cer¬
1932
he
1928 to
1932.
associated
became
O'Melveny-Wagenseller
and
with
remained
&
F.H. ROLLER & COMPANY
INC.
In
with
forces
will
had
much time for in¬
stitutional forms,
the forms of our
NY 1-1026
BArclay 7-0570
Durst
them
until
mili¬
necessarily
particularly for
political society.
in
Co.
craft
1942
and
was
ap¬
pointed to their financial admin¬
istrative
came
division.
Later
he
be¬
FA It II & CO.
.■
New
New
York
Members
York
Stock Exchange
Coffee & Sugar Exchange
WALL ST.,
90
attached to the Avion Corp.,
-
NEW YORK
SUGAR
serving that corporation in a sim¬
ilar capacity.
and
SUGAR SECURITIES
STANY Annual Dinner
Quotations Upon Request
To Be Held
April 21
TEL. HANOVER 2-9612
Security Traders Associa¬
tion of New York, Inc., announces
The
that
helping; ourselves out of depres¬ held
sion- and preparing for. war. We
have not
York.6, N. Y.
Ill Broadway, New
1942, having served as Vice-Presi¬
tate against the continuation of dent and Director in charge of
municipal bond activities.
the form of government we have their
always had there is no reason for Mr. Lamon joined the Vultee Air¬
tain
.
yond understanding and imagina¬
Great American Industries
Blylh In Los Angeles
the
association
with
preparation for
them of Summers Davidson La¬
war; and under conditions of mod¬
mon as manager of the municipal
ern warfare there are few indus¬
tors related to the
small
business. The day of small busi¬ pessimism.
"No
ness
people
on
earth
ever
may not be past; but small
business will certainly find it in¬ showed greater courage or ingen¬
■»'
"A
planning -mechanism does creasingly
uity in shaping the institutions of
difficult
to
operate
not need to be bureaucratic. In¬
their political society than we did
independently.;
■ <
>•*..'
;
deed it ought not to be bureau¬
"There is another; reason; why during and after the Revolution;
cratic. It is perfectly possible for concentration in business is likely and we certainly did not lose that
us
to bring together the area of to go ort apace during; the Jong capacity during the 19th century,"
government, management,; labor pull
of
the
post-war ' period. Dr;lurcher ^ sbiidC "It may.^b$ that
and the public to promote on a Whether we like it or not, we ap¬
the present generation, has lost
national -scale the kind of overall pear to be entering upbri a period some of Cthat "earlier power of
oversight of our economy which of power politics in international adaptation. Certainly it is true
we need. Why any such proposal
affairs. I am not evaluating that that during the past decade we
should display flashes of red to trend here; I am1 merely saying have
been
primarily concerned
some in our society is frankly be¬
that it looks very much as if that with the immediate objectives of
mean
Summers Lamon With
announce
as an
"What I
Minneapolis & St. Louis 5s 1934
RAILROAD,
MUNICIPAL,
GOVERNMENT,
call
vate business they
idea must be rehabili¬
tated
if private enterprise and
democracy are to survive.
ning
Minn. & St. Louis Gen'l 4s 1996
Members New York Stock Exchange
.
Dodge 5s 1935
Iowa Central 5s 1938
"
for an -in¬ European
states^big; business arid
creased governmental role ini our
power
diplomacy have always
long-range postwar; economy will
gone
hand v in • hand. European
also affect the structure and dis¬
states have always favored the
cipline of autonomous sectors of concentration of
enterprise par¬
that economy," he said. "For pri¬
jectives. which
racy,
with
f
able to meet successfully the
"The
|
from the taint
elements
NEWARK
policies effectively,
an
would be free
the
Des Moines & Ft.
744 Broad Street
BOSTON
problems of the period but will be
those most likely to serve national
agency_whichL
of
l
N. Y.
Teletype NY 1-897
STREET, NEW YORK
201 Devonshire Street
•
culty; and disaster."
be
New York 6,
63 Wall Street
from diffi¬
effort
an
?
Universal Match
fV
\
'
i
'
Discussing the form which busi¬
should
;
us
save
stated
cher
that
can
Cyanamid, Pfd.;
Eastern Sugar Associates, Com.
"It's cooperation that closes the trade."
completion of
|
mutually profitable.'
■m.i".? ?*■ '■ '■ vJ"'
provide that correlation of outlook
war
Toronto
Montreal
American
the institute in the auditorium.
Asserting that any" radical "departure from the system of private
.enterprise
in
both business and government and
this
country
HAnorer 2-09M I
Teletype NY 1-395
it is to know where they
as
making that trade. That's what we mean
demonstrate5 how
business and government
on economic planning for the entire nation was advocated on March 1
vby Dr. Arnold J. Zurcher, director of the New York University In¬
stitute on Postwar Reconstruction, in an address before members of
,5s
unthinka¬
ble, Dr. Zur¬
St., N. V. 5
Penn. BanksKares 4 Sec. Pfd.
"
democratic general staff to advise
A
we
When the
Dr. Arnold J. Zurcher, Director of
Post-War
you
sold. And it's equally important to,
turn-around in
on
Bell
important to be able, to know where you
buy the securities
can; be
/
Institute
WILLIAM
For in¬
New York
stance, it's just as
•
^
,
HART SMITH & CO.
between
produces profitable results for both.
1953
5%*, 1957
52
dealers
58,
Steep Rock Iron Mines, Ltd.
'(
-
Company
1959 '
Canada Northern Power
•'!
rf.
t^xperience has well proved that cooperation
>
5«,
COOPERATION
:
C/Ds.
Bonds,
1953,
Brown
MR. HUGO E. SELLGER
& Paper
Power
Abitibi
It's
MR. PATRICK B. McGlNNIS
annual
the
on
dinner
will
be
Friday evening, April 21,
offers
at the Waldorf.
Michael
J.
Heaney
Interesting Possibilities
American
of
Joseph
McManus & Co. is chairman of the
an
Casualty
£
Company
interesting situation at
the
present time, according to a
circular issued by Butler-Huff &
Co. of California, 210 West Sev¬
arrangements committee and will enth Street, Los Ageles, Calif.
opportunity to take
shortly report the committeemen Copies of this circular, discussing
inventory/to readjust those insti¬
the situation in detail, may be had
tutions and perhaps cast them in who will be in charge of reserva¬
upon
request from Butler-Huff
a
mold that -will endure for a tions, etc.
A large attendance of & Co., as well as a tabulation of
generation. Whether, or not we both local and out of town traders
the record of "The Home" since
shall
take that opoortnnity re¬
1853
But with the end of .the war
will
come
there
an
mains to be determined."
is expected.
..
Thursday, March 16, 1544
FINANCIAL CHRONICLE
THE COMMERCIAL &
ANNOUNCING
Mr. Matalene Believes That In Considering
3
underwriting and investment business
continue the
heretofore conducted
William McCormick
by
Blair
Lee H. Ostrander
Wallace M. Flower
Daniel J..Rioter
Don G. Miehls
in
tance
partners
on
considering
long
term
financing for reconversion.
TEL. FRANKLIN
March 10,1944
4151
Opinions differ
nomic
group
fate
of experts,
to our
as
after
the
eco¬
One
war.
the most voci¬
ferous if not the largest, believes
that
WE ARE PLEASED TO
-?n
\
'
'J
"J 1
ANNOUNCE THAT
V'n 'T I
J
'
K
+
we
in
are
for
an
extended
period of rising prices and a post¬
war boom. Another group foresees
.
serious
dislocations
and
,
MR. RAYMOND V. V. MILLER
of
is
the
in
industry
opinion
that
the
problems of reconversion will be
well nigh insuperable, with de¬
pression the inevitable outcome.
Probably
somewhere
between
these two extremes the truth will
OF OUR FIRM
HAS BECOME A SPECIAL PARTNER
Are Low
this panel have either raised part, if not all,
of the money needed for reconversion or they may look to such
assured sources as customers' deposits and stockholders' capital, the
U. S. Treasury, or the high grade bond market, for the funds they
may need for lending to industry. The business I represent, however,
must go to the investing public for the money required by its clients.
For this reason, the condition of^"
the security markets and their re¬ the enterprise in which they have
ceptiveness to corporate under¬ invested or are about to invest
writings are of paramount impor¬ their money has a better than
My associates
COMPANY
BLAIR, BONNER &
Long-Term
porate Underwritings Is Of Paramount Importance—He
Maintains That The Present Tax Structure Is Such That
South La Salle Street
Costs of Long-Term Financing
to
admitted to
general partnership in the New
York
Stock
Exchange firm of
Financing For Reconversion, The Condition Of The
Securities Markets And Their Receptiveness To Cor¬
Chicago Stock Exchanges
chicago
Patrick B. McGinnis and Hugo
E. Sellger have been
By EUGENE 'M.- MATALENE*
William Blair & Company
135
Pflugfelder Partners
For Re-Son version
the formation of
Members New York and
Sellger And IMinnis
Long-TermFinancing
average
prospect for weathering
satisfactorily the period of re¬
conversion uncertainties, it would
if not impossible, to
be difficult,
persuade them to place new
funds
in the business.
Projection of future sales, earn¬
and financial requirements
is always an uncertain matter but
it is made doubly so in the light
of dislocations which undoubtedly
will be caused by the war. Never¬
ings,
theless; even incomplete data are
better than no data at all. This
was
Patrick B. McGinnis
Hugo E. Sellger
Pflugfelder, Bampton & Rust, 61
Broadway, New York City.
Mr.
McGinnis has been the firm's an¬
alyst for a number of years, and
is
recognized
throughout
the
country as an authority on rail¬
road reorganization securities. He
is the author of the publication
"Guide to Railroad Reorganization
Securities."
For
a
number of
Mr. Sellger has been office
of the firm and also as¬
sociate editor of the "Guide to
are Railroad Reorganization Secur¬
impressed upon me very
last Summer when a
forcefully
years
manager
good one. As a re¬
corporations
have
taken and many others are plan¬
corporation, for which we
bankers, opened discussions look¬ ities."
ing toward the raising of a large
Admission of Mr. Sellger and
amount
of new equity capital.
Mr. McGinnis to partnership in
Sales of the business had sky¬
the firm was previously reported
rocketed because of the war and
in the "Chronicle" of March 2nd.
presently are running better than
fifteen times those of 1940. The
ning to take advantage of this sit¬
uation. In my opinion, they are
course,
be found but the fact remains that
the
future
An
still
is
equally
a
closed
plain
book.
observation,
however, is that the present mar¬
ket for
both
bond
and
equity
MEMBERS NEW YORK STOCK EXCHANGE
financing is
sult,
many
ONE WALL STREET, NEW YORK 5, N.Y.
Affiliated Debt Refund.
well advised.
Trading Markets:
Approved By Stkhldrs.
Stockholders of Affi liated
sum STOCKS
proposal
the "management to
entire
outstanding
debt consisting of $10,-
funded
000,000
Assoc. Com.
of
the
refund
East Sugar
Fluid,
Inc., at a meeting held yesterday
in Jersey City, N. J., approved a
in
due
tures
deben¬
convertible
4%
1949
and
1950,
through bank financing.
East.
Sugar Assoc. Pfd.
Lord,
Affiliated Fund, Inc., stated
Haytian Corp.
Punta
Alegre Sugar Corp.
.
3 cents
U. S. Sugar
a
share
on
the outstanding
shares.
Corp. Com.
The present
Vertientes-Camaguey Sugar Co.
debentures are ex¬
pected to be called for redemp¬
tion on May J, 1944.
have been distributed for corpora¬
tions
which
stantial
are
excess
subject
to
sub¬
profits taxes. Be¬
capital raises
the exemption from this tax, the
cause
new
equity
Stanley i. Rolh Go.
There
questions
To Be Formed In H. Y.
many
perplexing
regarding
"reconver¬
are
sion" which only
government and
Solution of
Effective March 23, the New these exceedingly intricate prob¬
York
Stock
Exchange
firm of lems will require not only the best
Stanley M. Roth & Co. will be brains but also the most under-:
formed with offices at 41. Broad standing type of cooperation of
Street, New York City.
Partners all forms of business. Without at¬
New Comers At Luckhurst
Luckhurst & Co., 60 Broad
New York City, announce
St.,
the ad¬
mission of the "Luckhurst Twins"
to
their
firm.
Stuart
Marshall
industry
Roth, who will
acquire the Exchange member¬
ship of Benjamin Yelin, Delia
Dee Jacobs, general partners, and
Samuel Ungerleider, Jr., limited
partner.
will be Stanley M.
Mr. Roth was formerly a part¬
Lax, 7 \'i pound son of trader Her¬
bert Lax, was admitted March 3, ner in E. J. Roth & Co.
Miss
1944.Only a few days later, Jacobs and Mr. Ungerleider were
David N. Wasserman, new son of partners in T. J. Beauchamp &
trader
Irving,
was
admitted. Both
Co.
Junior Members of the Staff and
their
nicely.
sponsors
,
are
progressing
M. J. Meehan To Admit
' •'
proud fathers indignantly
the-suggestion that one
of the newcomers be named "Bid"
ward
and the other "Asked."
Meehan
Charles
of
W.
Wilson,
Vice-Pres.
Bishop's Service, Inc., has re¬
tired after 36 years
of service with
the company.
will
and
shortly
Ed¬
be
partnership in M. J.
Co., 30 Broad Street,
City, members of the
and Chicago Stock Ex¬
to
&
York
New York
Mr. McNamee will act
alternate on the floor of the
changes.
as
New
E.
York
Exchange for Thomas
Doherty,
alternate
.
McNamee
Schnell
B.
admitted
New
C. W. Wilson Retires
S.
George
The
rejected
for
and
Mr.
Schnell as
Joseph A. Meehan.
termed
a
"normal" year
was
less
oneifourth the current rate.
Furthermore, since the company
had "plowed back" a large portion
than
of its war-time earnings into
the
business, despite exceedingly
taxes, it was our
that this is wise procedure.
Co.
position. After an extensive study,
however, we recommended that a
"VT" loan be incurred. Our engi¬
high
considered opin¬
cost of financing is reduced. As
ion that its net worth represented
an illustration, a leading chemical
as much capital as it reasonably
concern sold a large issue of new
could hope to employ profitably
4% preferred stock last Fall at a
after the war. The "VT" loan, of
net annual cost, according to my
course,
would take care of its
calculations, of less than % of 1%
near term working capital needs.
so long as
the excess profits tax
Stated differently, each piece of
remains in effect. Companies in
this position are taking out what new financing must be considered
amounts to an
insurance policy in its own light so that few addi¬
against future reconversion un¬ tional over-all statements can be
and over-all
certainties. I think you will agree
Vicana Sugar
company's working
capital, of
is severely strained and
the management was seeking ad¬
ditional funds to bolster its cash
Amended Plan Of NY Curb
On
Special Offerings
Exchange
March
3 that it had declared effective an
is such that costs of long term
amended plan of the New York
financing are relatively low. Most
neers had informed us that a rea¬
Curb Exchange relating to special
of
the
security offerings with
sonable estimate of the company's offerings. The SEC states! "The
which
my
firm has been con-'
neeted during the pasty ear ur so ^0s.Lwa^6gJe&=during what they, amendment has-the effect of ex¬
tax itself is lowered
President of
that
the new financing is expected to
be on a 2lk% basis, indicating a
gross interest saving of $150,000 a
year,
equivalent to more than
J.
Andrew
"
conditions favora¬
but the present tax structure
Not only are
ble
kk-k:V--■ k■ ■■■;;■.k"
a
can
answer.
tempting to discuss this phase of
the matter, however, in the short
time at our disposal, it may be
pointed out that, from the invest¬
ment
banking
viewpoint,' those
companies whose war-time prod¬
ucts are closest to their peace¬
time
dates
products are better candi¬
for public financing-- than
for reconversion purposes,
or
for
post-war expansion oppor¬
tunities which you now foresee,
any
Investment Banker will be
apposition to advise just how
it should be raised. No two sets
of circumstances will be the same
but. if I were asked to condense
your
into a
the
single phrase my views on
problem
whole
of financial
planning for the years to follow
the war, I should be inclined to
suggest that somewhat time-worn
axiom "Do it now."
private
banking
arrangements
represents the most satisfactory
immediate answer to their pre¬
dicament. Unless stockholders and
Carter was elected
President and a director of the
American Sealcone Corporation at
whose
are
severe.
prospective investors believe that
^Remarks made at the American
Management
Association
Panel
Session, Hotel New Yorker, March
1, 1944. Mr. Matalene is associated
with the investment banking and
brokerage firm of Hornblower
Weeks.
&
tending the provisions of the plan
to cover bonds, as well as stocks.
The amendment
block
minimum
may
'be offered
provides that the
of bonds which
as a
special offer¬
ing shall be $15,000 in principal
amount
having
an,
aggregate
market value of at least
$10,000.
provides that the special
the of¬
bonds shall not exceed
also
It
commission to be paid by
ferer
of
2V?% of the offering price. ,
The text of the Commission's
action follows:
having
effective
declared
Exchange
previously
plan for
and
Securities
"The
Commission
a
February 26 and 29, 1944, having
further amendments to its
filed
plan for such special offerings;
C.
a
Shelby
meeting of the Board.
Clermont
uel
E.
N
Cartwright and Sam¬
Magid; members
of Hill,
Thompson & Co., investment deal¬
ers
at 120 Broadway, New York
were
elected Vice-Presi¬
dents.
Mr.* Cartwright was also
City,
chosen a director, a
is already
position which
held by Mr. Magid.
Securities
"The
in
Garlwrighl And Magid
Elected By Sealcone
lems
Commission announced on
as
to the best means for
special
offerings
and
certain
handling long term capital re¬
amendments thereto, filed pursu-r
quirements. When your Planning
ant to rule X-10B-2 (d) by the
Committee has : determined
the
New York Curb Exchange; and
sum
which it believes adequate
the New York Curb Exchange, on
made
reconversion--prob¬
In these latter
cases, it seems to me that nego¬
tiation of so-called "VT" loans or
those
and
Securities
The
Commission
Exchange
and
having
due
given
consideration to the special offer¬
of the New York Curb
as amended and having
ing plan
.
Exchange
due regard
and
for the public interest
invest¬
for the protection of
pursuant
ors,
Securities
the
to
Exchange Act of 1934, particular¬
ly Sections 10 (b) and 23 (a)
thereof, and Rule X-10B-2 there¬
the
declares
hereby
under,
amended special offering plan of
the New York Curb Exchange as
filed
on
February 29, 1944, to be
effective,, on condition that if at
any
time it appears to the Com-?
mission
in
the
necessary
or
appropriate
public interest or for the
protection of investors
the
Commission
terminate
the
said plan by
days'
written
change."
may
so
to do,
suspend
effectiveness
or
of
sending at least ten
notice
to
the
Ex¬
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4264
It is necessary to
Trading Markets in
MOP
C. M. St. Paul 5s 75
MOP 5y2s
C. M. St. Paul 4%s 89
N, Y. Central 4V2s
C. M. St. Paul 5s 2000
St. L. S. F. 4s 50
Chgo. Nw. 4%s 49
St. L. S. F. 4v2s 78
49
Members
2013
61
St. L. S. F. 5s 50
4V2s 52
St. L. S. F. 6s 36
4i/2s 60
Seaboard 4s 59
Col. &. Sou..
COrtlandt 7-9400
been
as
a
dividend
its
on
own
&Co.
ently
more
sons
for
ceive
specific
the
to the rea¬
as
issue,
new
favorable
more
may
various rail subsidiaries with the
parent
than
company
had
generally
closer
be
may
been
consid¬
Imminence of merger steps
would be the strongest argument
ered.
Supreme Court Refused To Review The Charles
Hughes & Co. Dealer lark-Up Case
Monday, March 13, denied
a review of the Circuit Court's decision in the case of the securities
firm of Charles Hughes & Co., Inc., against the SEC, rendered Dec. 10,
1943.
The firm's broker-dealer registration was revoked by the SEC
on July 19,1943, because of their mark-up practices which were stated
to have averaged 25%.
The company petitioned; the - Second: Circuit
Court of Appeals for a revocation
close the current market price of
of the SEC's action, contending
not violated
had
curities Exchange
Court*
the Se¬
Act of 1934 in
failing to provide market quota¬
tions to customers, and that the
order of the Commission was an
unconstitutional
delegation
ef¬
dealer sells securi¬
In this case the SEC held in
if
that
a
securities to the customer.
the
full
The
of
the
Circuit
decision, upholding the
printed in the "Chronicle"
Court's
SEC
text
was
16, 1943, page 2418.
of Dec.
of
power.
fect
on
Cohu & Torrey
Admits
Raymond V. V. Miller
prices not reasonably re¬
lated to the current market price
_jGoim &.Torrey,JL Wall St., New
"hF Rar committed a fraud upon
York City, members New York
his customer if he does not disStock Exchange, announce that
ties
at
V. Miller has been
special partner in
Raymond V.
admitted
a
as
the firm.
working for
the' War
Department, being a
member of the Price Adjustment
of the North Atlantic Di¬
Board
RAILROAD
vision
SECURITIES
of
1943.
He
Engineers
is
also
since
a
early
director
of
Marine Midland
Corporation, GarCompany,
Easy
Washing Machine Corporation and
Liberty Aircraft Products Corpo¬
lock
WHEN ISSUED
Packing
ration.
The expected
filing of
a recap¬
beneficial
Power
and
effect
Electric
Light first preferred
upon
stocks, and possibly on the second
preferred according to a study of
the
situation
prepared
by Ira
SutroBros.&Co.
Members Hew
120
Yor\ Stoch Exchange
Broadway, New York
Telephone REctor 2'7340
Haupt & Co., Ill Broadway, New
York
City, members of the New
York Stock
Exchange, and* other
national exchanges. Copies of this
study
may
from Ira
be had upon request
Haupt & Co.
other
perhaps through .another bank
loan, of most, if not all, of the re¬
maining Collateral 5s, 1949 and 5s:
1950
at
lower
a
of
rate
interest.
The
potentialities for both the
prior preferred and regular pre¬
stocks
are
obviously
tre¬
mendous.
Allowing for expenses and taxes
of around $550,000 a year, a divi¬
dend of $3.50 a share on C. & O.
common (paid in each of the past
three years), and $168,000 income
from other securities held, there
be
a
serious matter once the debt
company
in
there
are
so
The 5%% preferred has ac¬
cumulations of more than $68 a
In
addition
the
to
the
reduc¬
debt
Exchange
and
other
Broadway, New Yorkjo, N. Y..
231
So.
LaSalle St.,.
Chicago 4, iii.
MINNEAPOLIS &
ST. LOUIS RAILROAD
("Old" issues)
Minneapolis & St. Louis 5s 1934
Minneapolis & St. Louis 4s
1949
& St. Louis 5s
1962
Minneapolis
Iowa
Central 5s
1938
I owa
Central 4s
1951
Des Moines & Ft. Dodge 4s 1935
Frederic H. Hatch & Co.
Incorporated
New York 5
63 Wall
Street
Bell Teletype NY
1-897
•III
Southern Traction 5's
12nd Ave. Traction 5's
Federal Street & Pleasant
Valley 5's
United Tractions 5's
holding
of
years
many
5V2 %
not
have
from
Debentures
paid
interest in
but
which
may
the pending reor¬
ganization as having considerable
At present they have a
value.
worth
market
of
a
common
stock and Class B prefer¬
stock
of
Bought
—
Sold
J.F.Reilly&Co
Members
New
York Security Dealers
Ill Broadway,
Assn.
New York, N. Y.
REctor 2-5288
Bell
System
Teletype.
NY
1-2480
Situation Attractive
& Co., 170 Broadway,
City, have prepared a
memorandum
on
Bartgis Bros.,
which the firm feels offers an in¬
Herzog
New York
approximately teresting situation at the present
time.
Copies of this interesting
Finally, the company
substantial interest in the
$1,400,000.
owns
Fort Pitt Traction 5's
Ohio
&
Pacific
souri
emerge
level when
120
share.
which
1937
Stock
leading Security and Commodity Exchs.
few shares outstand¬
ing,.
the position
of the
senior equities was highlighted in
company's annual report re¬
cently released. As of February 17
the debt of the company had been
reduced to $55,599,519, a decline
of $9,796,481 from the 1942 yearend, and $21,648,876 below the
York
New
problem is fully .resolved, because
stock there
While the new petition for au¬ are other holdings of Alleghany
which have interesting potentiali¬
thority to. issue the Chesapeake &
For one thing it is hoped
Ohio preferred has been a potent ties.
recent market factor, there is a eventually to sell the Terminal
strong feeling among rail men Shares properties at a fair price.
that
the
Alleghany
preferred These bring in no present income
stocks have considerable specula¬ but? are appraised on the com¬
tive appeal even without the pro¬ pany's books at $6,000,000.
Alle¬
posed dividend. The progress al¬ ghany owns $11,152,000 of Mis¬
by the
MEMBERS
double that amount.
,
Chesapeake
ma$e
&Co.
hold¬
&
the
italization by United Gas Corpor¬
ation with the SEC should have a
on
new
improving
Interesting Utility
Complete Arbitrage Propositions
allowing Chesapeake
received
preferred iWould be an equity of $3,443,258
for the Alleghany preferred stocks
stock issue.
Obviously a dividend in prefer¬ in the company's annual earnings.
red stock would be of great bene¬ Even though the debt status pre¬
fit to Alleghany without, at the cludes distribution of this income
same. time,
having any material in the way of dividends, it obvi¬
adverse influence on its holdings ously adds to; the equity of the
of Chesapeake & Ohio common. stocks
through debt retirement.
As of the end of 1943 Alleghany
This balance of income is equiva-r
owned 1,844,695 shares of Chesa¬ lent to more than $31 a share on
peake & Ohio common which un¬ the 110,730 shares of $2.50 prior
der the dividend plan of last year preferred outstanding.
Allowing
would entitle it to receive $18,- for the regular dividend on the
446,950 of the new 3%% preferred. prior
preferred the income is
Sale of the preferred would allow equivalent to a round $4.75 on the
shares of 5V2%
($100
payment of the entire bank loan 667,539
(contracted last year to pay off par) preferred outstanding. .Both
the 5s, 1944) with a balance of classes of preferred are cumula¬
The prior preferred Jias
perhaps $3,000,000 in 'cash left tive.
over.
This would in turn presum¬ about $23 a share accumulations
ably open the way for refunding, ; but liquidation thereof will not
ready
Bought—Sold—Quoted
of
favor
& Ohio to create the
ferred
Mr. Miller has been
REORGANIZATION
in
request
O., which is considered
eminently secure, is more than
Also, it is felt that the
merger of Chesapeake & Ohio's
hartford
The United States Supreme
of; C.
tion.
TWX-NY 1-1950
a
The regular dividend rate
ings.
re¬
Such
in many quarters it is felt that
income
considera¬
stock.
common
turned, down late last year, but
the new request, which is appar-f>
philadelphia
boston
New York 6
Bell Teletype—NY 1-310
was
New York 5
Broadway
has
tribute it
J. Arthur Warner
Exchange
a pronounced increase
in speculative interest
Alleghany Corporation in the past week or so. In
part, this is probably due to the renewed efforts of Chesapeake &
Ohio to get ICC authority to issue a new preferred stock and dis¬
Others Traded
120
Stock
in the stocks of
Seaboard 6s 45
Ceo. Southern 5s 45
Railway
Railroad Securities
There
Seaboard 5s 31
4%s .80
York
New
Broadway
Telephone-r-DIgby 4-4933
4s 34
C. R. I.
Chicago, Rock Island
pflugfelder, bampton & rust
C. R. I.
it
Railway Co.:
,
& Pacific
51/4S
C. R. I
that
Western Pacific
before
MOP 5s Various
Chgo. Mil. Gary 5s ,48
ever
MOP 4s 75
Chgo. Alton 3s 49
than
4" RED CROSS WAR DRIVE ^
Lehigh Vy. 4s 2003
B. & 0. Cv. 4y2s 60
more
Donate to the
RAILROAD SECURITIES
B. & 0. 4s 44
give
having
Pittston,
memorandum
may
be
had upon
request from Herzog & Co.
a
tion program was
ence
debt
present market value of just un¬
der $5,000,000.
At the present
time the Alleghany 5%%'. pre¬
initiated. This
a bank loan
of $14,801,519, the 5s, 1949 in the
amount of $21,661,000 and the 5s,
1950 in the amount of $19,137,000.
was
Annual
composed of
interest
amounts
to
only
$2,631,961 or about $1.43 a share
on
the Chesapeake & Ohio cornmon
held,
without
ferred has a liquidating value
excess
in
of $53 a share, after allow¬
Virginian
ing for the prior preferred at its
liquidating price of 50, plus ac-
allowing for crued dividends.
Corporation
REORGANIZATION POTENTIALITIES
Selected of
Securities
for
Missouri Pacific
attention Georgia
Mclaughlin, baird & reuss
TEL. HANOVER
2-1355
-
NEW YORK 5
STREET
.
-
are
certain exchanges which can. be
advantageously in the
reorganization, and with this in mind
Copies available ^upon request
ONE WALL
made
Collateral Trust Bonds
seaboard air line
System
Members New York Stock Exchange
We believe that there
TELETYPE NY 1-1310
wish to call to your
Carolina & Northern 6s/34.
1. h. rothchild &
co.
120 foroadway
COrtlandt 7-0136
n.
Adams & Peck
63 Wall Street,
specialists in rails
y. c.
5
Tele. NY 1-1293
BOwllng Green 9-8120
Boston
New York 5
Tele. NY 1-724
Philadelphia
Hartford
•
opportunity to turn over an hon¬
est
IN '
TRADING MARKETS
/
REAL ESTATE
tail distribution of
■
suggestions
the
dealers who are interested in
to
re¬
Real Estate Securities.
Incorporated
New
Members
Dlgby 4-4950
NY 1-953
Bell Teletype
t
41 Broad Street,
York Security Dealers
Association
HAnover 2-2100
New York 4
,
Interested In Buying
We Are
H:
t
; • *'•';r;
^
V .,V;' /,
1 '
•' <'V S
r
FRED F. FRENCH
Improved Real Estate Conditions And Its Effect On
Earnings—40 Wall Street Building A Specific Example
Stocks
AND
SECURITIES CORP.
ill
BROADWAY
NEW YORK 6, N.
Y.
REPORT
ers.
40 Wall Street
As
5s
50 Broadway 3s
mi
me
ULf
to about 88%,
Available Net
Income for the six months ended
31, 1943 showed
$126,184.86,
$11,569.86 was carried to
Working Capital
and the balance of $114,615 made
of which
O
■niipil
'
interest
and
ceding
Offer Fruehauf Pfd.
Lehman
Lerchen
Brothers and Watling,
Co.
&
head
a
banking
six
$757.81
Syndicate
20%
for
was
have
What
Sinking
developing into actual
months when only
shown as available.
with the celerity that
expected
are
Bankers
receivable
and
future
now
specifically planned.
The 4%%
ible
into
common
stock
time
sessed valuations of
cent
prior to redemption
of $44 per share
stock, provision being
made for adjustment of the con¬
version price in certain events.
riods 1940-1941 and
of
any
common
from
reduction
in
It
by
accorded most re¬
investors, including
buyers, are equally
appears
now
Co.'s
that Frueh¬
offering of
\XA% pre¬
60,000 shares of new
ferred stock, of $100 par
By WALTER WHYTE
sue
if,
to
as
a
the only
expected, it is offered to
morrow.
The sale will
provide the com¬
be added to
Any balance would
working capital.
side
which would otherwise be nec¬
symptoms of indi¬
gestion from sudden strength
showing
O.
&
to the next
steel, by the
Board, for con¬
more
Production
of" much
re-*
necessary
placement railroad equipment is
bringing out more frequent offer¬
ings
of
equipment
trust
cer¬
next
The
calendar
sold
issue
such
involves
in open
the
on
$2,200,000
Ohio
Rail¬
way
at noon next Wednesday.
for
for the
competition by
Chesapeake
Bidders will
Specifically, the column said/
"Given an average trading
day of 750,000 shares, the
first step-up to about a 1,200,000-day would be the signal
&
name
securities
direction."
to
the
the price and
to be dated
April I next and mature in equal
annual instalments from April 1,
1945 to
this volume
point
market direction.
Whichever way
Equipment Trusts
of
struction
be
column "said
the
would break out would
Release
War
--
important clue to
watch for would be volume.
essary.
C.
out widespread
Market n o w
brings
bullishness
Last week this
April 1, 1954, inclusive.
The
clue came
during the
closing days of last week.
Daily volume rose sharply to
cross the million and a quar¬
and prices,
floundering
for so many weeks, broke
through offerings on the up¬
side.
This surge through old
offering levels brought many
ter-share
figure
which had been
,
Boston Stock
Exchange
Admits 2 Corporations
under
amendment
an
to new high
which, in turn, brought
stocks up
BOTON, MASS. — The Boston
Stock
Exchange
has
admitted
Chace, Whiteside & Co., Inc., and
Ballou, Adams & Co., Inc., both
with approximately $3,428,700
new
funds
to
be used to
finance
the
redemption of the of Boston, to membership in the
outstanding 5% convertible pre¬ Exchange. There are the fourth
fifth
corporations admitted
ferred shares at $107.50 a share. and
pany
Volume break-through on up¬
that
value,
convertible feature,
substantial is¬
reach market this week,
carrying
will be
together
with
their
correspondents without
the necessity of traveling.from
city to City and town to town
rate
Trailer
auf
permitting
a
levels
about
complete reversal in mar¬
ket sentiment.
*
*
It is
no
evid
the
*
secret that up to
of
last week the
bearish.
Dow
corporations to become members
Street
of the Exchange.
Waiting Call For Bids
Theory adherents were point¬
ing at the inability of the in¬
Jonathan
Chace,
President
of
was
Chace, Whitside & Co., will be the
dustrials to confirm the rails.
ternity is patiently awaiting calls Exchange member of that firm;
from
two
utility companies to H; Starr Ballou, Jr., President of And while few of them had
tender bids for contemplated new Ballou, Adams & Co., will repre¬ enough money to make much
Just now the
underwriting fra¬
sent it.
issues.
in as¬
Bankers are
both
the
1941-1942 nor
the
the
approachable.
approximately
benefit that may be
issues,
•
tificates.
naturally are standing
institutional
any
conversion price
had been
month or so back.
reception
the
$5,000,000 granted by the Appellate
at the Division for the two taxable pe¬
at
business
by ready to move ahead when
ready.
And, judging
might be available to the Corpora¬
tion providing the Court of Ap¬
peals sustains the reduction
Preferred is convert¬
a
issuer is
,
notes
liberal volume of
a
in sight, but
for
some / unexplained
reason
projected new issues are not
that is offering today 60,- for Sinking Fund should mate¬
of Fruehauf Trailer rially increase.
We believe thai
Company A Vz % Convertible Pre¬ it is possible for this property to
ferred Stock, $100 par value, at show $350,000
available income
$103 per share, and accrued divi¬ for 1944 and base this premise
dends from March 1, 1944, to date
upon existing conditions.
Start¬
of delivery.
ing with $252,000 income (double
From the estimated net pro¬ last six months) and adding there¬
ceeds,
approximately $3,428,712 to the pro-rata part of $67,000 ad¬
will be used, to the extent re¬ ditional rent on the main Westquired, to redeem all of the out¬ 'nghouse Electric & Manufactur¬
standing
5%
Convertible Pre¬ ing lease from 5/1/44 plus pro¬
ferred Stock of the Company at rata part of $24,000 from West$107.50 per share.
The balance inghouse from 3/1/44 for an ad¬
of the proceeds from the sale of ditional floor,
plus pro-rata part
the new preferred will be avail¬ of the Atlas Corporation lease for
able for general corporate pur¬ three tower floors, plus pro-rata
poses, including, but not by way part of increased rents on 5/1/44
of limitation, the maintenance of renewals, we believe the estimate
cash balances, carrying of inven¬ is conservative as it does not take
tories, accounts receivable and into consideratioin any cash re¬
other current items, the financing funds of real estate taxes which
plant expansion and changes not
is
potential business
shares
of
world.
little, if any, more.
There
group
000
business
new
underwriting
80% for
the prospects for 1944
and future years?
As to 1944, an
estimate can be made which, while
of
course
not
accurate, shows
that
considerable
improvement
has been made and that interest
distributions and funds available
,
veritable
a
for the
And from
present
indications
it appears
that the approaching week will
of
dearth
This in contrast to the pre¬
Fund.
produced
week
this
Reserve for
available for distribution,
BiroodWay, New.York 5, N. Y.,>/
COrflandt 7*9400.
*. Teletype NY 1-1950%
120
Lehrnan Bros
and
of
Statement
the
the
m±mm
result of new tenants
a
Dec.
Other Issues Traded
■ '•?$ fl
Walter Whyte
many
and
increased occupancy
Savoy Plaza Hotel 3-6s
«
Tomorrow's Markets
getting
Except for a handful of special
small
secondary
offerings
The Picture Changes
Equitable Ofc. Bldg. 5s
Fresno
House in
REPORTER'S
Real Estate Bonds
Sacramento
V
Oakland
Monterey
,
Trading Markets:
to
Santa Barbara
OUR
WOrth 2-0510
wires
San Francisco
of the reorganization in 1940 the; 70-story
The group is Scheduled to hear,
office building at 40 Wall Street, New York City, presented many among others, J. Clifford Folger,
problems to the officers and directors of the new - corporation. Real President of the IBA, and Ralph
estate tax assessments Were out of line with value arid the income Chapman, new President of the
of the property, the former owners and affiliated interests who have National Association of Securities
occupied considerable space had moved to other properties, working Dealers.
capital was negligible and rental
New Yorkers who are making,
conditions were not of the best.
the trip to the Windy City look
As new tenants were secured, it
upon the Conference as a real
was necessary to spend consider¬
opportunity for, them.
They
able money to alter and ready
point out that the annual Chi¬
space as required.
As a conse¬
cago meeting invariably brings
quence during this rehabilitation
out a real delegation of Middle
period no funds were available
Western distributors and thus
for distribution to debenture hold¬
affords them an opportunity for
H. TIPTON
C.
Private
banking figures
took off on Tuesday afternoon for
the annual conference of the Cen¬
tral States Group of the IB A hold¬
ing forth at the Palmer
Chicago.
CO. 7-4150
14 Wall St., N. Y. 5
of New
sprinkling
With the completion
TUDOR CITY UNITS
Exchange
Members New York Stock
investment
York
By JOHN WEST
ALL
Schwabacher & Co.
sales.
goodly
wires
Direct private
Chicago-Bound
A
War Time
Eastern
out
tween their
Real Estate Securities
'''
10 A.M. to 5:30 P.M.
that the sum total
of the combined deals is consider¬
able.
And it is their contention
that the companies might reason¬
ably realize a better return if
several days were to lapse be¬
Seligman, Lubetkin & Co.
Stock Exchange
Members New York Curb Exchange
Members New York
Exchange
Open from
foregone con¬
that will be the
banking circles, it is
In
pointed
PL, N .Y.
Stock
Yet, it is almost a
case.
SHASKAN & C0.
on
| San Francisco
clusion that just
SECURITIES
40 EXCHANGE
Orders executed
too fast,
it appears.; At any rate poten¬
tial bidders for these two offer¬
ings are hoping, perhaps against
hope, that the issuers will not
call for bids as of the same date.
"SUGGESTIONS"
will be pleased to make
dollar.
But things can come
•
We
Thursday, March 16, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
these
companies, namely,
Consolidated Gas
Michigan
Oklahoma Natural
out their re¬
quests for bids to be opened a
week from Monday, March 27.
Co., and the
obtained
Gas
1942-1943
Co.,
of
inclined to expect
to send
a
rail
Interesting Possibilities
]\/Iarlin-Rockwell
offers
Corporation
attractive possibilities, ac¬
cording to
a
memorandum issued
difference in either the
or
the industrial picture,
they had enough of a follow¬
ing to make their opinions
carry some weight.
market stepped out
When the
oh volume
Church Street, New Haven, Conn., these adherents changed their
members of the New York Stoek
Michigan Consolidated Gas is
advice to flat bullishness.
Copies of this inter¬
by far the larger of the two proj¬ Exchange.
ects, involving as it does $38,- esting memorandum mqy be had
thereafter at $105.50
per
share, duction of the $19,300,000 assess¬
000,000 of new 3J/2% first mort¬ from the firm upon request.
There ■< was
still another
plus accrued dividends in each ment for 1944-1945 (which is $1,- gage bonds and 40,000 shares of
case.
group,
uninfluenced by sonew 4%% preferred stock.
Okla¬
900,000 more than the assessment
v.
Growth Possibilities /
called "advisory" opinion, but
homa Natural Gas plans call for
as
set by the Appellate Division
the marketing of $18,000,000 of
Common stock of the Gilchrist dependent on its own inter¬
Reorganizat'n Potentialities for the 1941-1942 period).
through
certiorari proceedings pending in
The Preferred Stock is redeem¬
able at $108 per share if redeemed fhe Supreme Court, nor any bene¬
on
or before March
1, 1947, and fit that may accrue from the re¬
and
1943-1944
periods
new
McLaughlin, Baird & Reuss, 1
St., New York City, members
of the New York Stock Exchange,
It
is
rather
difficult
to
divide
mortgage bonds
shares of preferred.
and 180,000
bv
Chas.
Company
W. Scranton & Co.. 209
offers
attractive
pos¬
sibilities according to a memo¬
pretations of what to expect.
Last week's advances found
distributed
by
Stanley Heller & Co., 30 Pine St., both groups seeing eye-to-eye.
riods (indenture distribution pe- |
There's Always A
have prepared an interesting cir¬
New York City, members of the
cular discussing the reorganiza¬ riods) but on the estimated net i
Things never run smoothly, it New York Curb Exchange. Copies Both saw in the advance a
tion potentialities for selected se¬
of $350,000, 80% or $280,000 would j seems.
Take the case of the of this memorandum discussing confirmation that a new bull
curities of
the Missouri Pacific
two aforementioned undertakings.
^ the stock's possibiities for appre¬ market was underway and
be available for distribution as inSystem.
Copies of this circular
nnnn request
tnrpct
and
20%
or
$70,000 for Naturally, the bankers, like all: ciation mov. h°
piay be had upon request from
(Continued on page 1118) :
.
other businessmen, welcome the from Stanley Heller & Co,
McLaughlin, Baird & Reuss.
» Sinking Fund.
"Wall
,
this estimate into six
.
randum
months pe¬
being
"Catch"
.
.
Volume
159
THE COMMERCIAL & FINANCIAL
Number 4264
-
CHRONICLE
ADVERTISEMENT
Fooid
Processing' Advancing lore Rapidly
Than Food Prodtiofion
NOTE—From time to time, in this space,
there will appear an article which we hope
Larger Volume Of Sales Has Resulted In Maintaining
UTILITY PREFERREDS
The Rate Of Profits On Turn-Over,
By
AUSTIN
Despite Higher Costs
S. IGLEHART, President,
Production and processing of food in the United States
American food
rising
24%, between
was
Public Utility
Securities
1939 and
food
United Gas Plan Proves Disappointing Marketwise
j
settlement
was
but*
pent,
believed
further
a
curred.
oc¬
'
The present plan, which seems
to reflect considerable prelimi¬
discussion
nary
with
SEC
the
staff, is highly complicated in its
provisions. Eliminating the inter¬
corporate transactions apparently
designed to satisfy legal require¬
ments and/or
sults
are
will
be
SEC
ideas, net re¬
follows:
as
(92,600 shares traded).
closed at 2
delay
United
Gas
recapitalized with $100,-
It has remained around that level
since, apparently on hopes that
the plan may be modified or fail
of consummation.
Applying the
usual
ten-times-earnings
ratio,
the stock would not appear to be
worth
over
forma
income statement.
siderable
based
the pro
on
A
con¬
of
amount
litigation
issues involved in the plan
over
has already been initiated in the
New York Supreme Court and
U.
the
$52,925,000 debt and other United
Gas securities held by EBS, and
the balance to redeem publiclyheld bonds and preferred. Electric
The managements of United Gas,
P. & L. would receive about 95%
in
of the new common stock
re¬
suits
S.
District
000,000 bonds (to be publicly of¬
fered) and 10,652,202 shares of
common stock. Of bond proceeds,
$44,000,000 will be used to cancel
Court—eight
by common stockholders of
United Gas, and six by stockhold¬
ers
of Electric Power & Light.
Electric Power &
Light and Elec¬
tric Bond & Share have tried to
present a plan which would sat¬
isfy these litigants so far as pos¬
sible. If the plan is approved by
of United the SEC it is understood that the
Gas second preferred and com¬ Commission will be asked to seek
mon, while
publicly-held com¬ a final decree or order by the
mon would get about 5%
(being District Court to enforce the plan,
reduced to l/6th as many shares). as provided in Section 11 of the
A pro forma income statement Utility Act. This would probably
for the calendar year 1943, pre¬ dispose of pending litigation, un¬
pared by the company, indicates less appeals are made to some
net earnings of $7,185,838 avail¬ higher court. Such an appeal ocits
for
turn
able for
the
holdings
new
common
stock
(this
can
assumes that the new bonds
be marketed at a 314% cou¬
pon
rate). Thus the earnings on
the
stock would
new
only 69d
amount
to
share, and in terms of
equi¬
valent to only about 120 a share.
a
the old stock this would be
This
result
proved quite dis¬
appointing, obviously, to holders
of the common, which had been
very active arpund 3 on the Curb
the day before the plan was filed.
On March 7th the stock opened at
cured
in
the
case
of the
United
Light & Power plan, which
approved by the SEC about a
ago
but has not yet been
forced by the courts.
higher than in
1942.
Using
had
plants
in
virtually every section
of the
country. They represented virtu¬
ally every branch of the
in¬
dustry, such as: bakeries, can¬
neries, cereal manufacturers, con¬
fectioners,
dairies,
dehydrators,
meat packers, quick-freezers, su¬
gar
refiners, and soft beverage
the
makers and bottlers.
en¬
earnings for Electric Power &
Light 1st preferred stocks would
be increased from $11.18 a share
to $13.61 per share if the plan
were
consummated;
moreover,
flow of divident income from
United
Gas
to
Electric
Power,
"dimmed up" for
many years, would be facilitated.
If the plan is consummated Elec¬
which has been
tric
Power & Light may be ex¬
pected to file a recap plan for
Puget Sound Power
distribution of
new
to holders of its
common
own
than
stock
1st and 2nd
by
American
(90-10%)
or
Power
&
Common¬
St.* Philadelphia 3
PH 30
Penny packer 8200
Private Phone to N. Y. C.
7-1202
complication
incident
to
preferred stock with large
is not too
serious,
as
2nd
a
arrears
the issue is
comparatively small (about
one-
United Light
Railways
Common Stock
When Issued
-
sold
-
quoted
Arnhold and S. Bleichroeder
Broad
WHitehall
St.
3-9200
show
Public Utilities
Central Pub. Util.
5%s
Inland P. & L. 6s & 7s
Kansas
City Pub. Svc.
Peoples Light & Power
Other Issues Traded
New York
Teletype NY 1-515
Austin
S.
Igleheart
the
following
with
with
$300,000,000 in assets. Liquor and
tobacco companies, so often in¬
cluded in widely circulated food
to
assets
some
statistical compilations, were ex¬
4% in cluded, because their problems
in 1942, differ from those of the food proc¬
percentage
gains
in food production:
1940.
7%
and 24%
in
the
1941,
18%
in 1943.
essors.
processing last
approximately at
Sales of these 50 companies ir.
food
Although
advanced
year
rate
food
1943
were
000.
estimated at $8,200,000,-
$7,431,848,000 in
processing outdistanced primary 1942; $5,927,294,000 in 1941; $4,food production in the last five 696,009,000 in 1940, and $4,244,years as'war demands took ever- 510,000 in 1939.
Assets of these companies, in
increasing tonnages of processed
same
as
output,
They
order
foods.
Food
processing, in actual ton¬
were
handle
to
doubled
almost
the
dollar sales volume, ac¬
companied by the high physical
primary food production, steadily volume, were increased between
nas
pointed upward since 1941. 1939 and 1942 by $506,761,000 or
Using the Federal Reserve Board 19% Total assets of these 50 com¬
food
manufacturing index, with panies
Were:
$2,665,745,000
in
1939 as a base, the following per¬ 1939; $2,720,150,000 in 1940; $2,centage gains were registered: 6% 989,767,000 in 1941, and $3,172,in 1940, 18% in 1941, and 32% in 506,000 in 1942.
Net income of the 50 companies,
1942.
Estimated rise of 38% for
1943 over 1939 is based on dollar after taxes, in 1943 was expected
and in percentage of total
nages
.
be
sales of 50 American food process¬
to
ing
companies, discounting such
rise of wholesale quo¬
tations as being nearest to manu-
would be
sales by the
the
ferred).
However, the Electric Power &
Light preferred stock declined
about
three
points
after an¬
nouncement of the plan, presumeably on profit-taking; they had
advanced
alltime
from
lows
around
3, and 1942 lows of 15-20,
to recent highs around 95-9. It
has been estimated in some quar¬
ters that they
of 125
or
panies
might attain
a
level
higher when both com¬
been recapitalized
have
meet
SEC
requirements.
This
is
apparently based on the con¬
jecture that they might be en¬
titled to some 90% of the earning
($12.12
or
basis
such
the estimated
on
a
two fellow commuters in the seat
just behind
me.
Odd, isn't it, how
listening to con¬
hard it is to resist
versations when it's
business;
or
looking
of your
none
over a
fellow's
shoulder while he is reading some¬
thing. Sort of draws you like a
magnet. Well, what I started to
say was, both of these chaps were
griping and grousing about their
high income taxes, and rationing,
a
larger than
profits
net
in
Meanwhile dollar volume
in 1939.
doubled.
Net
profits, after
$215,742,000;
in 1941 $239,878,000, and in 1942
$226,201,000.
Taxes, vital to finance the war,
in
taxes,
in
1943
1940
were
were
more
than
fivefold
greater than taxes in 1939.
In the
latter year they were $50,720,000;
in 1940 $72,205,000;
1941, $156,-
121,000;- 1942, $268,987,000, and in
1943 (estimated) $300,000,000.
The
ume
tal
in which dollar vol¬
reduce to¬
of sales (which means
way
costs
here
multiplier of
be
applied.
multiplier is high
everything except taxes) is
by the trend of costs of
taxes,
93.9
i941
in
cents
and
1940;
93.4
common.
these
operating com¬
pany stocks might be worth more
than
"ten
times,"
but on
the
hand
a
Federal
consolidated system
could
Ultimate
doubtless
re¬
no
longer be filled).
market
values
will
remain
largely depen¬
dent upon future Federal taxa¬
tion as applicable to these com¬
panies—post-war changes in rev¬
enues
and
rates
Moderate
are
less
after taxes, per dollar
were 4.7 cents; in
Profits,
of sales in 1939
1940, 4.6 cents; in 1941, 4 cents;
1942, 3 cents, and in 1943 about
cents
decline of 34%
im¬
from
.they'd give their "shirts,"
if necessary, to help win the war!
After all, griping is one of the privi¬
leges of a free and articulate citi¬
zenry. And just listen to a good
soldier's gripe, sometime, or talk
to a seasoned, old top-sergeant.
This writer
happened to be cured
of "grousing" in a rather peculiar
manner. He was privileged to read
letter, sent to a neighbor, from a
boy who is somewhere in the South
Pacific. The boy wrote of the many
hours he was spending in fox holes
dodging Japso's bombs; how he
and his buddies had to diye into
a
these holes "in the middle of the
night." Then he wrote in his letter,
"I understand
back home
are
some
of the folks
griping about their
ration cards. Tell them for
me—
I'll trade my fox hole for their
ration card—even!" Well, it takes
jolt like that, once in a while, to
bring you to—and to shame you,
what do you do?
a
too. In that case
You
just stop griping.
Well... this war—this
job we're
doing costs a lot of money—our
money. We're paying for it... but
it's worth the price. It's durable
goods we're buying! And what good
would our money, or anything else,
do
us
that
if
are
lost all of the things
we
worth
most of us,
the world?
so
much
more,
to
than all the money in
You see, I really am
cured!
MARK MERIT
Of SCHENLEY DISTILLERS CORP.
of earlier articles in this series will be
request. Send a post-card to
me care of
Schenley Distillers Corp.,
350 Fifth Avenue, New York 1, N. Y.
dollar of sales mean¬
208%.
They were: 1.2
N. Y.
The
Analysts To Hear
New
York
Society of Se¬
Inc.; will hear
J. W. Mclnerny, of Wood, Walker
&
Qo.,
speak
on
"Interesting
Opportunities in New York Cen¬
tral," at their meeting to be held
curity
on
Analysts,
March 17.
1941; 3.6 cents in 1942,
On March 22, H. D, Hughes,
(estimated) 3.7 cents. technical representative of Car¬
Profits,
after
taxes,
on
the bide & Carbon Chemicals Cor¬
dollar of invested capital follow:
poration, will speak on "Recent
7.4 cents in 1939; 7.9 cents in 1940; Advances in
Aliphatic Chemistry."
8 cents in 1941, and 7.1 cents in
All meetings are to be held at
and in 1943
1942.
,
Net
a
1.59
invested capital of
1.98
times, and in 1942 of
The rate of
times.
invested
capital
9% greater than in
it
represented
1939
56 Broad Street,
New York City,
at 12:30 p.m.
times, in 1940 of 1.73 times.
1941 of
2.34
in
in
sales
turnover of
was
25%
in 1942 it
duced
well under way.
pinch they'd sacri¬
than they are giving
in
cents
funding operations for susidiaries,
now
rose
cents in 1939; 1.5 cents in 1940; 2.6
dollar
accrue
a
or
Taxes per
while
gains for the
from bond re¬
system will
up now..
a
more
cents in 1943.
might reduce the earnings
(since
turn
increased
lot
93.3
about
and
1942,
1939;
cents in
those of 1939.
fair average for operating
stocks and it is assumed
that once EL is pladed on an allcommon basis, stocks? of the oper¬
ating companies (including Unit¬
ed Gas) would be distributed to
taxes
a
FREE-A booklet containing reprints
company
other
fice
sent you on
market standards of recent years,
new
off steam. In
sales per dollar; excluding
which were 94.1 cents in
it is
Some of
Now, really, these two guys aren't
bad fellows—they were just blowing
of sales helped to
3
a
are a
shown
a
holding company, based on
a
This
$245,000,000.
about 20%
lot of other inconveni¬
a
that
ences
com¬
could
more
While
on
and that
about
$197,392,000
had
tenth the amount of the first pre¬
portant.
INC.
30
Agricultural
for
The other day I over-heard a very
interesting conversation between
part and parcel of
wartime conditions.
of
Economics
10
an¬
and about
Bureau
to
for
$2,000,000
holders of the
Trading Markets:
They variea
"overhead." The
not
latter might be a subject
other book...
of the U /
stock
well, under
They
a
greatly in size—from those
ures
S.
I
little book entitled
"Over-heard by a commuter." Be
sure you read that correctly; I said
Some day, when I find time,
might write
base, fig¬
mon
as
formula similar to that pro¬
some
BOENNING &. CO.
bought
1939
year
a
as
5%
was
year
above)
stock
wealth & Southern (85-15%). The
->
plus
crops
livestock—last
basis
Light
&
—
power
common
posed
COrtlandt
Total
food output
prefered stocks, and probably to
Common Stock
1606 Walnut
38%.
the
& Light
dustry.
I'm Cured!
over-heard
Corporation, represent a crosssection 4)f the American food in¬
was
year
It is estimated that consolidated
the
survey
1943,
advanced
more
long-awaited plan for recapitalizing United Gas Corporation
(subsidiary of Electric Power & Light and Electric Bond & Share)
was filed March 6 with the Securities and Exchange Commission.
The
original plan for the sale of $75,000,000 bonds had been filed nearly
three years earlier, and a compromise -agreement was almost reached
in February 1942, but difficulties arose due to the objections of a large
stockholder in Electric Bon$ &<S>
1
•F
F-':■■■ ■ ■—
Share. Again last Novembe'r a 2Ys, down 7/s, declined to 1%, and
The
'F
processing com¬
according to a statistical
made by: General Foods
panies,
process¬
ing
after
facturer's prices.
Tne 50 food
prod uction
SCHENLEY DISTILLERS CORP., NEW YORK
reached
the tonnage and sales were larger. In the latter year net profits
taxes were slightly lower than in 1941.
While totai
®
*' .\-Vv""'1
ESTABLISHED 1879
interest to our fellow A mcricans.
This is number twenty-three of a series.
General Foods Corp.
record levels in 1943 and the entire food industry is being asked vo
outdistance such performances in 1944.
Profits'of food processors,
after taxes, may not be changed much from those of 1942, although
Paine, Webber, Jackson & Curtis
will be of
1939.
.every
more
was
in
turnover
1940
of
than in 1939, and
nership in Fagan & Co., 41 Broad
47% greater than in
in
as
today be admitted to limited part¬
words, in 1942 each
invested
capital pro¬
$1.47
Ungerleider will
193^f in 1941
In other
of
Fagan & Co. To Admit
Abraham
was
sales
volume
for
dollar it produced in 1939.
Street, New York City, members
of the New York Stock Exchange.
In the past Mr. Fagan was a spe¬
cial partner
in the firm.
Thursday, March 16, 1944
& FINANCIAL CHRONICLE
THE COMMERCIAL
Oofroif Gets First
MICHIGAN
Sir! Trading Manager
MARL1N-ROCKWELL CORP.
Griswold
Memorandum sent
on
request
Street,
troit's
financial
rocked
to
week by
the
heart of De¬
district,
foundations
its
Charles A. Parcells & Co.
Members of
u. s. Government
that pretty Miss
job
of manager of the trading floor at
Hornblower
and
Weeks offices
within
New Haven
news
N. Y. Stock
Danbury
for 52 Years
Exchange
or
Bank Stocks
639 Penobscot Building
two.
dimpled, precedent
setting Miss Farr started her fi¬
nancial career in 1936 when, fresh
out of high school, she became a
stenographer in the bond depart¬
ment of Dominick & Dominick,
In Connecticut
Members
week
Corporate Bonds &
Bonds
Dark-eyed,
Waterbury
New London
a
Municipals
this
Alice Farr will take over the
CHAS. W. SCRANTON & Co.
& General Market
Detroit Stock Exchange
was
DETROIT 26, MICH.
fibst op Michigan Cobposation
Detroit
Member
Private Wires
Telephone
Stock Exchange
To All Markets
Randolph 5625
NEW YORK
DETROIT
remaining with Watling, Lerchen
Connecticut Brevities
the first of March the
On
Michigan Brevities
when that firm took over the of¬
fice.
city of Bridgeport sold to a
dealer
She
later
moved
over
to
Forbes' Investors
'resigned to become Michigan representative of
Vital Food Corp. of Chicago.
William Alfs, general counsel for
the New York Central Railroad, was named Director of International
Detrola Corp.
Paul H. Townsend, Vice-President and General
resi¬ Manager of the Hurop Portland Cement Co., was elected a director
First of
Michigan and from there
went to Blyth & Company, where
she is now employed.
It was at
the
latter
firm
that
she
first
Luke
Leonard, special representative of B. C.
League,
Fairplay
$454,000 refunding bonds due serially March 1 from 1946 through
.
.
.
1954 at 100.289 for a .90% coupon.
These were subsequently reoffered in the market at prices ranging from a .45% to a .85% basis. worked on the trading desk.
.
Also sold were $450,000 interceptor bonds due serially March 1
Said Charles R. Perrigo,
from 1945 to 1954 at a price of 100.08 for a 1% coupon.
Reoffering dent partner of Hornblower & of Federal Motor Truck Co. . . .^
—
1 "■ ■
was
on a
scale ranging from a #
thiest
suburban
area,
stirred
Weeks: "We're glad to welcome And James Cope, Washington rep¬
come
(after taxes) was $365,444
.35% to a 1.10% basis. This sale
banking circles last week.
her into the organization and I'm resentative
of
the
Automotive
as compared with $286,368 a year
represents an all-time high in
sure
she'll do a great job.
Her Council for War Production, ar¬
Five bids were received for an
prices for Connecticut municipals. ago—an increase of 27.6%. On a career on Griswold Street has rived in Detroit to take over his
>{•
per
share basis, earnings were
demonstrated unusual ability in a new job of assistant to the Presi¬ offering of $40,000 1944 refund¬
$1.70 against $1.33 in 1942. State
ing bonds of School District No. 7,
The Connecticut,Light & Power
field where all too few women dent of Chrysler Corp.
and Federal taxes show an in¬
Troy Township, Oakland County,
Co. showed a total operating rev¬
try their hands."
crease of $424,500, being $719,500
Mich., at a sale held Feb. 24. The
enue of $27,370,502 for the year
in 1943 and $295,000 for the previ¬
A
syndicate
composed
of
successful bidder, L. T. Hood &
ended Dec. 31, 1943. This was an
Insurance Stock Index
ous year.
Shields & Co., II. V. Sattley &
As of Dec. 31, the com¬
Co. of Detroit, paid par plus a
8.1% increase over the previous
The Mackubin, Legg Casualty
pany had cash and U. S. Govern¬
Co., Inc., Crouse, Bennett, Smith
premium of $47.50 for the issue.
year. On the other hand, operat¬ ment securities
totalling $1,040,818 Index registered a decrease of 1.7
& Co., and McDonald-Moore &
ing expenses increased 13%.
and a back-log of orders in excess
Co., purchased $405,000 School
points for the month of February,
The issue will be dated March
Net
income
was
$3,699,313
of 60%
of the volume of 1943 while the Fire Index showed an
District No. 2, Township of Lake,
1, 1944, with serial maturities of
against $3,586,506 or $2.56 per
salej.
"
increase
of
A
Macomb
County,
Mich., 1944
points for the
*
*
share compared with $2.50 in
2,000 each on May 1, 1945 to 1953,
month.
Copies of the Index, giv¬
refunding bonds at an interest
inclusive; $3,000,000 each on May
1942.
The
preferred
stock
cost of 2.958%.
The
Southern
New
England ing comparative figures for 1942.
1, 1954 to 1959, inclusive, and
showed earnings of $11.01 per
The bonds mature May 1, 1945
Telephone Co. has two new mem¬ 1943 and 1944, may be had upon
share against $10.67 a year ago,
$4,000 on May 1, 1960. The ma¬
bers on its bohrd of directors- request from Mackubin, Legg & to May 1, 1966, both inclusive, and
turities of May 1, 1958-1960 are
and fixed charges and preferred
with
a
comparative are being reoffered to yield 1.50%
Eugene E. Wilson, Vice-Chairman Company,
callable on and after Nov. 1, 1949,
dividends
were
covered
2.14
of the United Aircraft Corp., and statement of 1943 and 1942 fire to 2.85%.
The larger portion of 1947 and
1945, respectively.
The
times in both years. Equity per
and casualty insurance company the issue was sold the first day of
Franklin R. Hoadley, President of
bonds bear interest at the rate of
common share was $42.10 against
earnings and liquidating values. offering.
the Atwood Machine Co., of Ston3% to May 1, 1954, and 3.5%
$42.11 last year.
ington.
These men replace the Also available are memoranda on
The proceeds of the sale, to¬ thereafter to maturity.
During the year, the company late Thomas W. Farnam and the the Aetna Insurance Company,
gether with $7,000 on hand in
The proceeds of the sale will
redeemed $7,038,000 of the 3Vz% late James Lester Goodwin.
Fidelity & Guaranty Fire Cor¬
sinking fund, will be used to call
be used to call for redemption
debentures of 1956.
Cash at the
*
*
sis
"
poration, and Reliance Insurance for
redemption on April 1, 1944,
on
April
1,
1944,
an
equal
end of the year totalled $4,829,Company.
Requests should be a total of
$412,000 1937 refunding
The Hartford Gas Co., complet¬
amount of 1937 refunding bonds,
made to the Insurance Stocks De¬
954.
*
♦
4»
series A and B, due 0ct. L 1962.
ing its 94th year of service, re¬ partment, Mackubin, Legg & Co., bonds, series A and B, due Oct.
ports the < largest volume of gas 22 Light Street, Baltimore, Md.
1,^966...
Due to increased demand from
sales in the company's history-^Matthew Carey, refunding agent
Somewhat of an innovation in
1
1
f
industrial and residential users,
5.6% ahead of last year. Net in¬
for the district, reports that the Detroit *is the service offered by
The
United
Illuminating
Co.'s
Personnel Changes
come for the year ending Dec. 31,
.new issue was offered to take ad¬ one of the trust companies here
sales of electricity increased ap¬
(Special to The -financial Chronicle)
1943, was $399,527—an-increase of
vantage of prevailing lower in- to soldiers.
proximately 9.6% during the past
DETROIT, MICH.—Francis J. TeresTratesand that the net in¬
$19,711 or 5.2% over last year's
Those going into the armed ser¬
year, bringing operating revenues
operations.
Lynch, formerly with Wm. C. terest cost for the life of the new vices are
given complete financial
to a total of $13,765,105. Expenses
Honey & Co., has become con^; bonds, after deducting premium service absolutely free, with the
Earnings on
the preferred
of operation of $5,646,830 were up
nected with Watling, Lerchen & and assuming full exercise of call
stock were $13.32 per share as
trust company handling many de-•'
11.5%
while
maintenance
ex¬
Co., Ford Building.
.
provisions, will be $114,786.85. The tails such as mortgage and insur¬
compared to
$12.66 In 1942,
penses of $885,219 advanced about
interest cost at rates provided for
while the common showed earn¬
ance payments.
' ^ '
67% over 1942. Earnings for 1943
(Special to The Financial Chronicle)
in the 1937 issue would be $146,ings of $2.26 against $2.13 for
were
$2.09 per share compared
Although this service has not
GRAND
RAPIDS,
MICH.— 644.20, so that a saving of $31,the previous year. Total taxes
with $2.10 for the preceding year.
been
advertised
by other than
Claude M. Hatch has been added 857.35 or 21.72% has been effected
were
2%
over
the preceding
word-of-mouth, an official of the
to the staff of Wm. C. Roney & by refunding.
year and 108% over 1935 taxes.
firm, reports that many fathers
The Bridgeport Brass Co. re¬
Co., Grand Rapids National Bank
During the year plant and prop¬
have availed themselves of it re¬
Building. '
ports earnings for the year ended
Lewis F. Gordon, National Pres¬
erty
improvements
totalled
cently.
Dec. .31, 1943, of 570 per share
ident of the Financial Advertisers
$137,155, the major improve¬
(Special to The Financial Chronicle)
against 870 in 1942—-both figures
ments being made at the Front
Association, was speaker at the
Negotiations have
been con¬
GRAND
RAPIDS,
MICH.— annual banquet of the Michigan
excluding post-war refund.
Net
Street plant.
cluded by the Miller Manufactur¬
income was $1,287,520 as com¬
J.
Henry
Geurkink, previously Group in the Book Cadillac Hotel
*
*
*
ing Co. of Detroit, makers of spe¬
with King, Wulf & Co. and Har¬ the latter
pared with $1,522,162 a year ago.
part of February.
Total sales made by Veedercial service tools for auto, aviation
Equity per common share
in¬
per Wegusen & Yonkman, is now
One of the most successful to and other type engines, for the
Root, Inc., in 1943 doubled those
creased from $13.93 to $14.78.
with Straus Securities Company,
;
of 1942. Net earnings per share
date, Earl Failor, Vice-President acquisition of controlling interest
;.":7
#
♦
JjS
Federal Square Building.
of the National Bank of Detroit, in the Rieke Metal Products Co.
amounted to $4.08 after deducting
For the year ended Dec. 31,
a reserve for
-^nd C. B. Leonard, Assistant Vice- of Auburn, Ind,, world's largest
contingencies almost
1943, Bristol Brass Corp. re¬
the equivalent of $1 per share.
President of the Detroit Trust Co., factory in production and sale of
Sutphin With
ported earnings of $5.19 per
were
in charge of arrangements metal fittings for containers.
This compared with $3.03 for 1942.
(Special to The Financial Chronicle >
.
.
.
,
-
.
,
"
-
r~
.
•
Hornblower
-
against $5.66 the preced¬
share
ing
•
Equity per share was
increase of $2.02
year.
$54.07
over
—
At
the
had
an
cash
*
*
current
808,841
1942.
$
year
of
and
i
ernment
The Silex Company as of Dec.
31, 1943, showed net sales of $4,548,722 against $2,881,528 for the
previous year. Net income before
taxes was $1,084,944 or an increase
of 86.6% over 1942, while net in-
Markets for Dealers in:
Aetna Life
New Britain Mack.
Am. Hardware
Russell Mfg. Co.
Landers
Scovill Mfg. Co.
Conn.Lt.&Pr.
Torrington Co.
V
Cobura & Middlebrook,
49
Pearl
St.,
Hartford Phone
7-3261
Boston
Hartford
V
\
1,
Conn.
assets
which
$2,305,610
$917,836 in U.
securities.
were
was
Gov¬
Current lia¬
S.
$2,772,951.
-
Bement
-
HARTFORD, CONN.—Henry
H.
Sutphin
has
become associated
with Hornblower & Weeks.
Mr.
on
Otto
Bankers
Trust, did an
-
Co.
sales of
Dec.
31,
1943, as
had been made for the
compared with
071 was
New York:
BOwling Green 9-2211
System Teletype: IIF 365
ment
invested in U. S. Govern¬
share was
1942.
Current liabil$32,870,538. Equity per
$22.37 against $19.84 in,
securities.
ties were
purchase
Pointe
Savings
the
of
Grosse
Bank, located in
consummate
To
the
outstanding
Wismer, President of
1
with Mer¬ job as toastmaster.
rill & Company of Hartford. Prior
thereto he was with Roy T. H.
News that at least two offers
320,680,480 for the previous yeaf.
$26,835,692 for the year ended Net income was $2,256,584 against
$2,172,268 in 1942. At the end of
1943 there
were
789,350 shares
outstanding
as
compared with
Tifft Brothers
712,100 a year ago, the additional
Members New York and Boston Stock
shares being exchanged for cap¬
Exchanges
ital stock of the Chandler Evans
Associate Members New York Curb'
Exchange
.Corp. The earnings per share for
1943 were $2.86 as compared with
Primary Markets in
$3.05 a year ago. These earnings
include a post-war refund of $1.36
Hartford and
and $1.20' respectively.
Current
Connecticut Securities
totalled $43,090,111 of which
14,998,259 was cash, and $5,228,Hartford 7-3191
Beli
for the meeting.
Sutphin was previously
Pond Company
reported gross profit
New York Phone
Teletype HF 464
the company
totalling $5,-
Barnes &
Niles
HAnover 2-5537
Phone—Enterprise 1850
Bell
bilities
end,
Detroit's weal-
Rieke
the
deal, which involves 51% of the
stock, Miller would issue 100,000
shares
of
$5
A stock
class
present
common
750,000 shares.
convertible
par
and
increase
the
from 300,000 to
The class A may
be sold to
provide the $712,500
purchase price and additional
working capital, it was stated.
HowelllEIectric Motors
.*
Aeronautical Products Inc.
Mich. Off. & Theatre, L T. C.
Common
Great Lakes Term. Whse.
I
Latest Information
on
L. A. Darling Co.
Request
Mercier, McDowell
lllman, foreland & Co.
Member
& D0LPHYN
Members Detroit
Buhl Bldg.
Cadillac 5752
DETROIT 26
Detroit
Stock
Exchange
1051 Penobscot Building
Stock Exchange
DETROIT 26, MICH.
-
/
Battle
*
Teletype DE
Creek
75
' v
Lansing
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4264
The "Forgotten
Man" Who Can't Forget
All interesting stock with good
markets'
You know the expression
To depict a victim of the Big Depression.
But it doesn't fit, 'tis plain to see,
He's been getting the works since '33.
The "Forgotten Man"?
He
was
real believer at the
a
But he's
seen
start,
Show,
Old Ben Coal 6s and
dictatorships grow;
a tawdry token!
"No Strike Pledge" much shattered and broken!
He
was
collared
the
Member St. Louis Stock Exchange
,
,500 Olive Street
ST.
LOUIS
Steel Products
Engineering
Stonega Coke & Coal
gangster vote;
Request
on
Taussig, Day S Company, Inc.
7y2s
Portland Electric Power 6s, 1950
St. Louis Public Service issues
now
quite concerned when he got the dope
How Third Term
Common
Analysis
Interstate Aircraft & Engineering
Marathon Paper Mills
weasel words to him delude.
Highest Court
Buckeye Incubator
Company
Hearst Consolidated Publications Class "A"
Knows it's the way
The
pfd.
Chicago, Wilmington & Franklin Coal
Chicago & Southern Airlines
Ely & Walker Dry Goods Company
his country torn apart
He didn't sign up for a One Man
post-war outlook
Berkshire Fine Spinning Associates com. &
By profligate waste and executive feud,
And by
1099
1,
■
>
MISSOURI
Teletype —SL 62
He's
much alarmed by waste of billions; *
By crack-pot brain trust—boondoggling minions!
The living cost
SCHEBlCIi, RSCHTER COMPANY
a sham,
points to buy a ham;
Finally much bored with Fireside Chats,
When he hasn't the dough to feed his brats.
index he knows is
When he hasn't the
He
knows
he's
Land ret h
Bell Teletype
SL 456
BANKING
Ely & Walker Splits Stock
brunt of quadrupled tax,
At
special meeting held early this month, stockholders of
Ely & Walker Dry Goods Company approved the plan to split the
first and second preferred stocks, $100 par value each, into shares
of $20 par value, one share of old
receiving five shares of new.
All the rights and privileges of the old stock were retained accord¬
ing to E. P. Cane, President.
digs up his share of Hed Cross quota,
By sacrificing his ice-cream soda;
Scrapes bottom for the War Bond Drive,
Then skimps along to keep alive.
gets
"MY
He
can't
But
gas
DAY"
no
The "Forgotten
Man"?
He's the
Collar
White
Out at the? seat and down
of
"The
March 9th.
major problems
are handled
will effect the jobs
of millions of people," he said,
"determine the existence of whole
industries, and mark the future of
the traditional American system of
free enterprise."
About
$75,000,000,000
in
contracts will have to
be
at the end of the
and
war,
will
manufacturers
have
war
settled
many
money
invested in the contracts that will
be
needed
to
meet
reconversion
costs, payrolls and bills for new
materials and supplies, Moll said.
"At the
the
ment will
probably have $50,000,equipment, supplies
and materials on hand," he said.
"The distribution of this surplus
could change more than buying
000 worth of
is
and
in
has
position to become
competitor in
peace," he said. "Although most
of the privately-owned companies
now
operating these plants will
have the legal right to buy them
after the war, many things stand
in the way of their doing this. A
satisfactory
solution
must
be
found for the problem as soon as
possible so businessmen can plan
industry's
a
greatest
for the post-war
period with
from war to peace
unless handled properly.
"For instance, when the war is
over, we will have enough shoes
on
hand to injure the shoe in¬
dustry if they are dumped on the
change-over
The
same
trollable
fected
Personnel Changes
(Special to
ST.
The
Financial
LOUIS,
of
II.
Dempsey-Tegeler &
was
Co.,
cost
have
ef¬
reduction
operations
in
re¬
Bank
&
Company of St. Louis.
results
obtained
by
the
present management in compari¬
son with other companies in, the
whatever
deem
to
elect
803 Landreth
full
volume
production of
products identified with the
industry such as bakers'
other
food
yeast,
corn
table
syrup,
trines.
malt
syrup,
starches,
syrup,
and
Balance sheet of the
dex-
necessary
S.
Bldg.
I
Teletype—SL 486
1
;
•*
,
'.V
L. D. 240
1
Vr
mw-T
"
'
Fast and accurate Markets in ail
ST. LOUIS
SECURITIES
Direct Private Wire to
■
New
York and Providence
Offices
A.
Dobyne, President of
company,
has directed a
the
letter to
he
G. H. Walker & Co.
stockholders, in which
endeavors
to
made
statements
group.
-
refute
by the
the
local
.
,
and
Exchange
Street
Locust
Co. is
holders of
Stock
Other Principal Exchanges
ST. LOUIS 1, MISSOURI
McQuay-Norris Stock Split
Proposed
275.
Members
York
503
com¬
continues to reflect its usual
strong
liquid position, current
of
assets
$21,518,566 comparing
with current liabilities of $3,693,-
•
New
pany
Cash and U. S. Government
securities alone totaled $8,310,784.
Company is without funded debt,
bank loans, or preferred stock. A
"deferred
capital
expenditure
fund"
consisting of $3,000,000 U.
Teletype SL 84
a
three-for-one
com¬
stock
split at the annual
meeting March 27. Recent action
in raising the quarterly dividend
rate from 62^20 to 150 is thought
to indicate a $1.00 rate on the
S. Certificates of Indebtedness and
new
We Maintain Markets In:
Missouri Utilities Preferred
Lasalle
of
post-war credit,
$3,951,831, is shown
other assets and is to be
in. financing improvements
immediately
after
the
war
when present restrictions
Dividends in
per
of
share
$20
1943
or
totaled $4
value capital stock
outstanding
and
payments
of
on
the St. Louis
Chicago Stock Exchanges, the
common stock was
strong on the
Huckins
Hotel,
Oklahoma City, Okla.
announcement.
Missouri
Portland
Metropolitan St.
Cement
COMPANY
Earnings Lower
permit.
the 900,000 shares
on
par
stock. Listed
Hotel, Beaumont, Texas
Hilton Davis Chemical Co. Pfd.
and
total
a
Tel. Central 0838
McQuay-Norris Manufacturing
asking approval of its stock¬
mon
INVESTMENT
SECURITIES'
Construction awards, off 55% in
the territory served by the Kan¬
sas City plant and 75% less in the
territory served by the St. Louis
(Continued
on page
1108)
(Special to The Financial Chronicle)
ST.
LOUIS, MO.—Evan James
Maranville
is
with
Barrett
Der¬
rick & Co., Inc., 418 Locust Street.
ST.
LOUIS, MO.—Clarence G.
Eiler has become
connected with
Barrett Herrick & Co., 418 Locust
Street.
Statistical
:.'
Information
-')y
on
Request
St/K
r;:->
&
Co.
&C0.
Members
SAINT LOUIS
St. Louis
509 0UVE ST.
ST.
LOUIS, MO.—Luman F.
Declaring that the government
Matthews has become associated
has
invested
$30,000,000,000
in
with Reinholdt & Gardner, 400
industrial plants and equipment
production,
Moll
said
Locust Street.
in¬
dustrial companies in the United
States.
KANSAS CITY, MO.—John A.
Ruhl is
now
with Barrett Herrick
i & Co., Inc.,
1012 Baltimore Ave.
System Teletype—SL 80
Stock
Exchange
;
319 North Fourth Street
WHITE & COMPANY
Mississippi Valley Trust Bldg.
ST. LOUIS 1,
these holdings equal one-third of
the total value of all private
Bell
SAINT LOUIS 2
MO.
Members St. Louis Stock
Coast to Coast Wire System
Exchange
Teletype
SL
158
|
""
V''
1
'
.vl-
li*.
a
company's operations.
with
QUOTED
ST. LOUIS 2, MO.
changes
they
to improve the
Further
vitamin bearing yeasts and yeast
derivatives is reported together
tion."
war
received
are
make
$6,439,818 or $7.15 per share."
growth in sales of dried
—
?eltason, Tenenbaum, Inc.
been prepared for election to the
board of directors and if enough
proxies
SOLD
A tentative slate has
field.
same
—
is true of air¬
plane motors, airplane parts, and
many other articles from shirts to
ships that cut straight across a
major part of American produc¬
for
BOUGHT
ating
of
Mr. Vo-
previously with the
LUMBER
def¬
majority to the board, this group
has "signified its intention to study
the company's affairs closely and
used
Chronicle)
MO.—Lewis
407 North Eighth Street.
Trust
1943
continued
attention to the unfavorable oper¬
among
Vogelpohl has been added to the
staff
of
small
some
profit yield.
over
by Champion Shoe
Co. of St. Louis, a
his
in
Inc.,
"although
factors
shown
Machinery
group
of
local
business
men,
many of whom being identified
with local investment firms, have
actively solicited proxies for the
annual stockholders meeting. Let¬
ters have been sent out directing
operating at the limit of practical
productive capacity, n?any uncon¬
or
gelpohl
market.
that,
Concerned
icits
stockholders
to
LONG BELL
Proxy Fight Develops In Cham¬
pion Shoe Machinery
parent company
Mercantile-Commerce
the
con¬
fidence."
entire
in
become
wartime industrialist
habits, for it could also upset the
economy
27-28
20^4-21
basis.
report
far in 1944.
a final net profit of
$6,081,789, or $6.76 per share,com¬
pared with 1942 final net profit
government
biggest
war's end the govern¬
national
the
or
sulted in
can
"The way these
r
the
all major
departments of the business were
contracts to
on
from
4^-42
Anheuser-Busch,
states
be aided by planning now for prompt
speed reconversion, and careful dis¬
posal of the huge surplus of government-owned supplies, as well as
the vast government holdings of plants and equipment, William J.
Moll, executive of Geyer, Cornell & Newell, Inc., said in addressing a
luncheon meeting of the New York merchandising group of the Amer¬
ican Marketing Association at thef^
Hotel Sheraton
the
new
annual
Speech to Marketing Group
war
so
Adolphus Busch, III, President
HARVEY C. EVANS,
Spring St., Los Angeles, Calif.
Outlines Need for Policies Now
employment
the
in
Chicago
150 and $1.00 have been made
for
given
Anheuser-Busch Reports
Major Factors To Aid Post-War Jobs Cited
By Wm. Moll In Market Ass'n Address
Postwar
to
INCORPORATED
St. Louis
<3>
$20
Exchange in
and
prices
1943,
advanced
on
Three
settlement of
Stock
level
STIFEL, NICOLAUS&CO.
Considerable
developed
have
March 8, 1944.
in
Louis
St.
patient guy and seldom hollers,
But now is white-hot under the collar;
Plans a house-cleaning job for Ides of November.
"Forgotten Man"?—you bet he remembers!
S.
has
to
since delisting from the
November,
Phoney New Deal!
$25
shares
new
activity
common
have his shirt!
a
621
two
from
each share of old.
at the heel,
He knows whose to blame—The
He's
and
stock's par value
common
changed
was
You brain-trust jerkguy—you
a
The
and must trudge the road,
is flitting around the globe;
afford liquor,- or even buy beer,
thing he knows—a reckoning's near.
one
1890-1944
Missouri Brevities
He
As
of
L. D. 123
,
INVESTMENT
His worldly possessions are on his back.
He
Fifty-Four Years
Garfield 0225
,
He struggles along at the same old pay,
He doesn't come under the eight-hour day;
bears the
Building
Louis, Mo.
been
played for a sucker
By railroad man and coal-mine mucker,
Who called the bluff and got a big raise.
But HE doesn't strike—he solicits no praise.
He
St.
L.D.
71
:
1100
THE COMMERCIAL & FINANCIAL CHRONICLE
.
..
-
.
..
Thursday, March 16, 1944
.
Royal Bank of Scotland
M
Incorporated by Royal
RegulationinPeace-Time Economy
STOCKS
INA
PRIMARY MARKETS
Huff, Geyer <&. Hecht
York
New
1-2875
PRIVATE
LOUIS,
'•
ANGELES,
LOS
Branches
PROVIDENCE,
Enterprise 7008
duction
do
mit
Stocks
Bank and Insurance
of
E. A. VAN DEUSEN
This Week
17th
February
the
—
''Chronicle" excerpts were
issue of the
presidential reports to stockhold-'
ers
may prove of interest to in¬
Guaranty
AMERICAN SURETY CO.: Net
1942.
Operating results
for
the year
the
Bulletin
Members
net
total
$75,000);
,
rented.
CO.:
fifty-fourth annual report of
L.
Gibbs, Manager Trading Department)
A
in
a
1943
were
premiums written
close to $51,000,000,
of
reduction
$1,250,000
com¬
presented
was
company
annual meeting of
382 from
This decrease was
1942.
de¬
entirely in the contract bond
result of the coun¬
try-wide decline in building and
construction; all other underwrit¬
partment
as a
departments experienced an
increase.
The gain from under¬
ing
writing
was
net
and
$2,745,290
income
investment
while the total
$724,522,
was
profit from opera¬
tions, before Federal income taxes
and
adjustment of contingency
was
reserves,
reported at $3,460,-
483, compared with $3,062,261 in
1942.
With regard to taxes, Mr.
A.
F'-ank
said:
president,
Bach,
"Taxes continue to increase. Fed¬
other
and
eral
jmd
ments
our
through pay¬
this year
earnings
cost
taxes
reserves
$1,911,541
•
$15.93 per share of
st^ck outstanding), an increase of
$393,533 over 1942. We have been
(equal
able
to
to
expenses
but
our
the
reduce
by operating economies,
of taxes is beyond
item
control." The closing sentence
in. Mr. Bach's report
"With
full
certainties
face
controllable
our
the
is as follows:
realization of the
un¬
ahead
we
which
future
lie
confident
of
the
amounted
income
vestment
to
increase of $242,189
compared with 1942. With regard
to taxes, Mr. C. S. Kremer, presi¬
$4,529,603,
dent,
an
"Total taxes paid by
said:
to
$4,575,422 and $4,345,486, re¬
spectively; the Federal tax
amounted to $2,050,088 and $683,949, respectively. Thus, statutory
underwriting profiles were equiv¬
alent to $0.84 per share and net
investment
share,
income
Continental
Bank
Irving Trust
Firemen's of
Newark
Great American Ins.
to
cerns
begin jockeying for com¬
post-war position.
The
petitive
nation cannot
which
minds
the
in
decisions
by civilian manu-i
where
man-'
manpower
cause
may
American
now
et
was
allied
and
esy
it
An
about its position on
when Germany
obvious
is
it
comes,
relax
to
that
regardless
ernment
the
A
sharp
demands
be
that
the
was
of
cost
[From the time of the Nazi collapse
to the resumption of iarge-scale
;
j civilian production
This
to
Com¬
new
the last nine months of 1943 into
War
Bonds,
in
regular purchases
addition to its
of these secu¬
rities."
dred
HAVEN);
and
102nd
totaled
$731,307
hun¬
forty-three marked the
year
company.
Nineteen
in the history of this
Net premiums written
$7,703,078,
from
the
a
decrease
1942
total.
of
A
decrease of $1,666,803 in the ocean
Cairo
Register No.
FULLY
PAID
1
much
six
CAPITAL
RESERVE FUND
Cairo
£3,000,000
*
:
in the previous year.
Referring to the heavy fire losses
of
LONDON
eight months.
Every concern that has a readjust¬
ment problem, like every worker
who has an employment problem,
£3,000,00*
AGENCY
will have time to act to insure its
were
be
investments
$ 1.15 per shared
and
$230,912 or
$1.05
vs.
the Federal indictment of fire
surance
as
as
or
and 7 King William
6
Branches
actions may be unpredictable. But
companies at Atlanta inn
;U,.. '
all
m
principal
i;
the,
Towns
in
EGYPT and the SUDAN
NATIONAL BANK
of INDIA. LIMITED
Bankers
Branches
the
to
Government
Colony
Kenya
Head
and
i»
Uganda
v
Office;
26, Bishopsgate.
London, E. C.
in
India,
Burma, Ceylon, Kenya
and Aden and Zanzibar
Colony
Subscribed
Capital..
£4,000,000
Capital
—-£2,000,000
Paid-Up
Reserve
Che
Bank
Fund
and
Trusteeships
'.
V
—_£2,200.000
conducts
banking
in-jgies are bound to. flag, and his
1942, most of the presidents of the | if he has the sense of being on
insurance
companies
com-':a winning team in which all the
mented on it in their reports, but players are pulling together; then
refrained
from
discussing
its he is tranquil of mind and full of
Street, E. C.
-Vl/1
description
every
exchange
and
also undertaken
■
of
business
Executorships '
.
fire
that
demonstrate the all-out
by Mr. George C. Long,
Company,
selves
participation in the war.
is not the responsibility
ican
in an election year, when
opinions tend to be exaggerated,
and when feelings run high.
job.
your
Morale
follows: "De¬
indictment
character
effort.
That is
dangerous
Consider, for example, the mattei
of strikes and work stoppages ir
war plants and mines.
Like your¬
war
,
and
like
people,
all
I
of
have
the
Amer-
frequentlj
been
angry
and. resentful ovei
government alone. It is equally' such
stoppages.
I have wanted tc
responsibility of industry and
see strong measures taken to
against
company
members and
pre¬
of labor and of every other or¬
officers of the South-Eastern Un¬
vent: them:; Yet, at the same time
ganized group in American life.
derwriters^ Association,
referred
I have every reason to know thai
Everyone of us, in fact, must ac¬
to in our last report, was sustain-;
the: workmen in American plants
cept an individual responsibility
ed by the Lower Court in Atlanta,like the managers, are by anc
for the effect of his actions and
Georgia. Appeal by the Govern¬
statements and
policies on the large patriotically devoted to the
ment to the United States Sup-^
public mind. That is particularly best interests of the country, anc
reme Court has been argued and
ance
murrer
as
of1
to the Federal
the
decision
final
may
SECURITY INSURANCE CO.
(NEW
Commercial
a
of
war.
Office
Head.
programmed to safeguard em¬
and
living standards,
that confidence by continuing 4o
are
of EGYPT
'
Jr.,
president of The Phoenix Insur¬
today
NATIONAL BANK
return
| vigor. You can help give America
helping
<
Banks
A.
ployment
$35,646 below the. 1942
figure.
underwritings
with
throughout the C, S.
production would throw the
economy off balance.
The public
interest
Street, E. C.
Berkeley Square, W. 1
Agency arrangements
ian
Perhaps one of the most
thus
LONDON OFFICES:
47
and
merits.
for example, placed all of
premium dollars during
pany,
its
Bonds,
countries,
con¬
interesting of these comments was
premiums
New
be
not
economic
night.
over
will
we
our
per
,
largest bank in Australasia. With over
in all States of Australia, in
Zealand,
the
Pacific
Islands,
and
London, it offers the most complete and
efficient
banking
service
to
Investors,
traders
and
travellers
interested In these
branches
800
of
and
respectively, in 1942. With
to the Company's in¬
vestments, Mr. Harold V. Smith,
president, said: "Dollars for fire
and
period of
Combined earnings from months is bound to elapse—it may
which
Manager
George Street, SYDNEY
The Bank of New South Wales Is the oldest
proph¬
when that day will come, but
able
under¬
writing loss of $95,254 was re¬
ported, approximately $57,250 less
than the loss reported in 1942; net
investment income was $326,166,
DAVIDSON, K.B.E.,
General
would not attempt to
when
largely off-
lines.
ALFRED
SIR
Head Office;
$1.22
$1.50
—
29 Threadneedie:
by substantial increases in the
fire
30th
£187,413,762
Aggregate
Assets
Sept., 1943
surrender.
"I
8,780,000
the
business' coneern needs to become
agitated
cer-f
trols
decline which
6,150,000
.
£23,710,000
marine business was experienced,! sudden return to large-scale civil¬
a
.—£8,780,000
Fund
Liability of Prop._
"Efforts to beat the gun on
areas.;
a
.ESTABLISHED 1817)
Paid-Up Capital 1—__
Reserve
ian economy.
areas
critical
in
BANK OF
NEW SOUTH WALES
business
which they affect.
concern
New Zealand
Australia and
Reserve
run
Ltd.
Bank,
afford to have
now
$0.64
Other Issues Traded
the
against
It is
to
reference
bear
^
group
National interest has to
the
submerged.
Deacon's
Glyn Mills A Cd.
coincide
not
with
compared
going in large part into U. S. Gov¬
Bank & Insurance Stock:
produc-j
to civilian
every
Associated BanKS:
Williams
have
national interest for business con¬
sole criterion will be the
our
we
1943, Mr, Peter J. Berry, presi¬
dent; made the • following state¬ position in peacetime industry.
pany Group in 1943 amounted to
ment: "Industry has performed an
"By continuing to adapt their
$8,003,221, which compared with
outstanding job in producing war group policies to the needs of the
a
similar item of $5,045,017 in
materials for our fighting forces, nation, the leaders of American
1942; and with $3,774,126 in 1941."
The
stepped-up production has management and labor can add
HOME INSURANCE CO.: Net resulted,
however, in increased great strength to the war effort
premiums written amounted to fire losses due to employing in¬ And 'this strength is not merely
$61,567,060, a figure only frac¬ experienced help and lowering of economic, it comes not merely
tionally below that of 1942. Ocean fire protection standards, along from a wise use of manpower,
marine and
automobile writings with increased congestion in the parts and materials, but also" from
declined $6,070,000, but fire and homes and in the factories. Con¬ high morale.
Sometimes, I think
allied lines increased nearly $6,- sequently, in 1943 more property we lose sight of the state of mind
000,000.
Underwriting gain and was destroyed by fire than in any of the individual citizen as he does:
his war job.
net
investment
If he is worried and
income, before year since 1932."
j
anxious and suspicious, his enerFederal income taxes, amounted
With regard to the matter of
the Hartford Fire Insurance Com¬
insurance
Trading Markets:
be
does
will
at pared with 1942. The underwrit¬
stockhold¬ ing gain, as reported to the In¬
ers on Feb.
16, 1944 at the home surance Department of Connecti¬
office of the Company in Balti¬ cut,
was
$3,110,005
($2.59 per
more. Net premiums written total¬
share), an increase of $1,428,541
ed $10,540,174, a decrease of $755,($1.19 per share) over 1942; in¬
the
to return first
tion,
with
,
1942,
in
as
that
there; but if those decisions art;
demanded .by. the public .interest \
.hey will be made.
"The economy must be kept in
balance..
The economic balance;
demands at this time that any ex-
ANCE CO.: Net
FIDELITY AND DEPOSIT
The
this
"Now,
interest
and
to go.
way
1-1248-49
Teletype—NY
<
£108,171,956
of
the unknown day
equivalent to
$4.70 per share. Mr. S. F. Lafrentz, ability of our organization, so far
president, stated that the Com¬ as it is within its power, to cope
pany's Home Office Building at with situations as they arise"'
300
Broadway, New York City,
HARTFORD
FIRE
INSUR¬
97%%
long
a
tain amount of heartache here and;
Bell
-
W, /
ASSETS
TOTAL
forces
survival
American democracy;
certain
to
.
Such
(increase $153,286),
wan
of
necessary
great caution in per-;
mitting any expansion of civilian:
output whatever.
>
•"
' j
"In designating the areas
and5
the plants which will be allowed
ers
Exchange
Stock
York
$1,408,522
taxes,
income
Federal
and
it
Telephone: BArclay 7-3500
after
income
New
BROADWAY, NEW YORK 6, N. Y.
130
(increase
$675,000
taxes,
come
in¬
Federal
$32,638);.
(increase
parts
make
the
of
the
threaten
is available may* have to be, return to civilian business will be
permitted to resume production? unavailing. Their only result will
of those items before manufactur-j be to slow up war production. No
Lairil, Bissell & Meeds
(increase $195,647);
income, $874,861
investment
net
64 New Bond Street,
and for
once
power
compared with 1942, were as fol¬
lows:
net
underwriting
profits
$1,208,660
which
with
move
facturers
Request
on
recognize,
destruction
utter
critical shortages in some
manpower
of
certain
of items needed
ended Dec. 31, 1943,
sixtieth year
of operation,
us
swing away from urgent
It will not always be possible, for war problems to post-war mar¬
example, to give identical treat¬ kets any more than it can afford
ment to competitive concerns! In? to have workers leave war jobs in
order to obtain early production: order to look for jobs in the civil¬
New York
"
all, that this period of reconver¬
of
business
Trust Co. of
totaled
increase of $185,-
premiums written in 1943
over
But let
with
E, C. /
Charing Cross, S. W. !
Burlington Gardens, IV. I
"Presently, of course, the col¬
public interest. Our decisions can¬
not be expected to satisfy every
vestors and dealers.
49
concern.
lapse of Germany will enable us
to
return
a
large part of our
resources to peacetime production.
expand civilian pro¬
possible to
component
comparative tabulation of 1943 operations of leading fire and casualty
companies as reported in their annual "Convention" reports. Mean¬
while,
further
gleanings from *•
-
443
dustrial
considerable dis¬
program, but we will per-; sion is still a
expansion at the expense tance away. We are committed to
essential military production.' total victory in this war, to the
materials
given in this column from the reports to stockholders of a few leading
fire insurance companies.
This week further excerpts are presented.
In another week or so it will be possible to give a fairly extensive
$13,252,400, an
term
E. C. 2
8 IVesl Smithfield,
,
no
areas
Insurance Stocks
3 Bishopsgate,
ought to underlie the nearpolicy and plans of every in¬
war
Today
"
In
fact
preserve
interference
LONDON OFFICES!
the needs of
That
gradual, with
very
it becomes
as
without
so
the
By
will
"We
7008
Enterprise
PORTLAND,
6011
Enterprise
to
throughout Scotland
the armed forces paramount.
lows:
TO
TELEPHONES
1
.
SEATTLE
AND
determined
OFFICE—Edinburgh 7
pansion of the civilian economy be
a sound balance in its policy. Thai;
policy can be summed up as fol¬
NEW YORK, BOSTON, CHICAGO,
FRANCISCO
SAN
is
Board
CG-105
yl
'
HARTFORD,
;
7535
FRanklin
0650
Street
Salle
La
S.
135
Square
SYSTEM CONNECTING:
WIRE
ST.
1
Office
HUBbard
3-0782
WHitehall
NY
Post
10
Street
Wall
67
Chicago 8
!)
Boston
6
HEAD
;;
(Continued from first page)
today ..who cannot under
stand why we do not permit an
immediate return to large-scale
civilian production.
Now, as be¬
fore, however, the War Production
many
Charter 1727
vt»\-
I.V
■»
ture.
by
that
tribunal
be expected in the near fuBills are now before the
'reaffirm the
individual
regulate insurance and
the intent of Congress
Congress designed to
traditional right of the
sJates
to
restating
to
exclude
from Vthe
insurance
j
are
.
"We
can
help to maintain morale
is
doing
the
in
tion.
a
first-class productior
The best" proof of this fac
figures
of
war
produc¬
If labor had not done
a
-grea
directing our ener¬
gies along the war beam, but also; job, we could never have reachec
hy using a little self-censorship on our production goals." Clearly, wc
our words.
There, ish a tendency have to. make- a distinction be¬
not
only
by
.
scope
of the Sherman
Anti-Trust! here and there to disparage the
Law when that law was
enacted.''
other fellow's contribution to
the
tween
factual
criticism
of
worl
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4264
159
i
I,
remains to be done.
My point is that the country is
labor as a whole.
■
T
"In
the
same
sense
I resent better prepared than -ever before
hearing heedless criticism of the in its history to anticipate' the
attitude of management. Undoubt¬ problems that lie ahead, and to
edly, here and there, management, overcome them by wise action,
like labor, has been open to criti¬ ■v "When I place reliance on the
cism.
There are some weeds in sound economic planning that has
every victory garden.
But it is been done, and is being done, I
perfectly clear that management am thinking only of the period
of transition, when controls will
pn the whole has been splendidly
cooperative, and has done a mag¬ obviously be needed.
I certainly
nificent war job.
Had it been would strenuously oppose any at¬
otherwise, we would not be win¬ tempt to put the post-war econ¬
ning this war today.
omy in a totalitarian straitjacket.
"Unfair criticism of government It has been my goal from the very
is equally dangerous.
I think it. start to limit detailed economic
is a bad mistake for any Amer¬ planning as nearly as may be to
ican, regardless of his party poli¬ wartime; production of military
tics, to heap contempt on a con¬
stoppages, and unfair criticism
of
much planning
,
,
•
,
-
civilian
and
essentials.
To
i •-»
ii
living standards. Security can be utterances cannot help but pro¬
late the peacetime economy in de¬ established and living standardscan mote unity and confidence among
tail would be to do, irreparable rise only in a national atmosphere the people.
It is entirely possible
injury to the free enterprise sys¬ of confidence. Certainly, the trend that by exerting a constructive
tem in the United States.
of the war and the outlook for influence on public opinion at this
Regi¬
mentation would almost certainly the post-war economy justify us time you can set the tone of the
tend
to
choke
off
regu¬
competi¬
new
tion, and to drain away the
sonal
and
initiative
is
a
which
has
"Those of
us
face
rale
which
now
are
which
arise
of
out
behaviour, heedless
cism, and artificial fear.
group
" who want to
see
the
free
enterprise system not
merely survive, but grow and de¬
velop, need to recognize that the
long-range future of free enter¬
prise hinges on its capacity to
serve
1 The worst entire generation of American life
the nation must that lies ahead.
Unity and con¬
the dangers to mo¬ fidence are all we Americans need
feeling confident.
been
strength to the nation.
/
in
dangers
ever-renewed
of
source
per¬
the needs and desires of the
people for security and improved
"As individuals and
as
selfish
to
criti¬
fulfill
tory. To
that
represen¬
tatives of
industry, you can go far
to strengthen the national econ¬
omy
and the
national
morale.
Your example in persistently sup¬
porting the all-out war effort and
your self-restraint in actions and
in
momentous
arts
minds
of
can
breeds
of
leader
a
opinion
representa¬
for
contempt
tive
government in the minds of
people, then whether he in¬
tends it or not, he is inviting chaos
the
in this country.
"I have yet to see one
son
Americans
for
constitutional
to
good rea¬
their
fear
Be¬
government.
it is their government They
It represents them.
cause
control" it.
.
That is true not only of Congress;
but also of the Executive Branch
Take the
specific
ernment'
agency
of the Gov¬
I, know most
case
,
about—the War Production Board.
Although it works with industry,
is not dominated by industry,
it has naturally borrowed many
it
of its staff from the ranks of in¬
dustry and commerce, but it has
borrowed freely from labor
and from the trained administra¬
also
of
tors
government who are
es¬
sential to any great public enters
These men do not repre-^
prise.
their former group interests
sent
They have worked steadfastly to¬
gether for the benefit of the peo¬
ple as a whole, to speed victory
in this
of the words, they are
This
vants.
For years
In the truest sense
war.
public
it has been
Today's Conditions call for a
accepted business
an
appraisal
proper
practice to insure material assets—plant, ma*
of brains. And brains call for the fullest
protec¬
chinery, stock and fixtures.
ser¬
Government of ours
tion—the
industry's government, it is
not labor's government, it is no
Government's government; it is
But
of the United States.
government of all the people
So long as
power
people can change and modify
their government, so long as it re¬
n
■
.
protection afforded by Business Life
looked.
is not
the
Insurance.
the
,
democratic,
disease
germs
order
sell
to
We know that by
medicine.
large
in
nation's need in
When we criticize any
nated itself to the
this
war.
us
sure
«C
v*
the power
\
*
/(\
4
»•;
'
'
k
1
' »'
,J'V ,,s
*
1
V
.
»''
/
-
'/<
'
•
in American life, every one
it to the nation to be
of his facts and to set an
'
<s
<'■
BUSINESS LIFE INSURANCE
cannot
«.
brains—
%/'
,
'
^
XtKt
e
and accuracy.
"The unwarranted fears stirred
up
by heedless criticism drive
people into taking extreme and
dangerous positions.
It is only
unwarranted fear about the atti¬
tude;':'of government that would
'
uv
Y'a*\.
!,
f
V
N t
^
^
£»
r
». / J
,
V
r
,
_
\
The loss of material
J
'
v
'
'/
assets can
\
f
'K 'tj
MS
»
,
be made
quickly* But it takes time, thought and
to
replace the
man
ders the business
r
r
man
'*
I
'
r
_^
■
K
1.
good
Indemnify
your
that
would
make
that such fears are
because to me it
seems unmistakable that our eco¬
nomic future, both for the near
term and the long term, is full of
telligent
planning gone into the
preparation of an economic read¬
justment. This planning is being
done not only by the Executive
Branch of the Government, but by
bv' industry itself, bv
farm groups and by
thousands of individual communi¬
Congress,
labor,
by
ties; and all of these groups are
collaborating with one another.
Some of the plans that have been
made may
need improvement; and
business.
f
1".
already
Under way.
His death
causes
uneasiness in the
organiza¬
tion, shakes the confidence of customers, and
tightens credit when credit is needed
And death
usually strikes at the
wrong
4.
most.
time.
Attract
him
to
a
compc tent successor
carry
on
problems.
say
bright promise. Never before has
so much realistic thinking and in¬
" *
Permit the completion of projects
labor
unwarranted
,
3.
profitable.
unduly agitated over cut¬
backs. VI
1
Assure the cooperation of creditors.
only unwarranted fear of the
become
1
2.
ren¬
attitude of management and gov¬
ernment
?
money
whose directing force
seek a premature
production at
the risk of the national war effort.
It is
your
business against its great
civilian
to
in
loss,
make business
return
l\
The
Cash Proceeds Will:
brings in customers.
r
key
a
7
'
owes
example of restraint
prevent, but will compensate
the loss of
that develops it, creates good will,
group
of
)
^
over*
and
major group in the
has genuinely subordi¬
every
country
,.1
The greatest asset of a business is its
"Factual criticism is healthy, it
it is necessary to
successful
popular
government.
But to spread unfair criticism in
order to serve special interests is
as vicious as it would be to spread
is
important asset—the brain
more
key executive—is frequently
a
'
representative character,
they have no cause to fear.
;
of
1
•
it
tains
far
a
INS U HA N CE
LIFE
r
T
.'■/
COM PA NY
Springfield, Massachusetts
.
i
Organized 1831
BERTRAND J. PERRY, President
and enable
unhampered by
living as
scarcely conceive."
Naturally,
we
have
to
guard
against possible abuses of the pub¬
lic interest by any group of of¬
ficials. But I tell you plainly, that
whenever
his^
achievements
civilized
government.
stitutional American
our
beyond doubt
and confident of her peace¬
the
our
seems
future, will lead the world
to such
in
promise of
it
unified America, victorious
a
war
time
the
me
money
'<
Thursday, March 16, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1111111111! 111111111111111111111111111111111U.
■.-:
:
■'■:■
■■■■
•■
'- : ;' "v
single most widely held issue. This is
shown by a study of 1943 year-end portfolios issued yesterday by
the National Association of Investment Companies.
Utility stocks
as a grouo, including
both preferred and common issues, are close
pany
Shares, Inc.
New
Prospectus upon request
vv?"\ ?/>"* 1"'^'f''-"'{??&*#&<
r/v^;w-v-|^
but among individual^
■ 1
■
a,-1'1
, .rv
issues, Montgomery Ward and the war in Europe started and before
any real conversion of American
two
big peace-time automobile
producers, General Motors and industry to war production had
occurred.
Mining
company
is¬
Chrysler, follow Standard Oil of
New Jersey in breadth of owner¬ sues, which were then second only
ship
among
these
investment to oil stocks, have declinde more
|
;,:::ibbb
Prospectus
t
on
Lord, Abbett & Co.
request
INCORPORATED
NEW YORK
♦
CHICAGO
•
GENERAL
.than 50% in the total amount held
funds.
held stocks by
The 10 most widely
INVESTORS
JERSEY CITY ♦ LOS ANGELES
of New Jersey being the
runner-up,
England
Fund
SI OF INVESTING COMPflWIES 1
folios analyzed, were
TRUST
Prospectus on
request
aircraft and electrical
'
No. of Funds
'
*
manufacturers
No. of Shs.
Held
Holding
53
Montgomery
52
General Motors——_
Mr. Paul Bartholet, Executive
E
48
Chrysler
46
International
|
44
Texas
44
General
42
North
42
Socony-Vacuum
41
American Gas & Elec-
Director
results
of the
of
summarizes in his covering letter the
separate study showing the changes in distribution of
a
investment
outbreak of
S.
holdings
by
major industry
groups
since the
DISTRIBUTORS:
'
Association,
company
A. W. SMITH & CO., Inc.
=
S
war.
E
E
111 DEVONSHIRE STREET
»
BOSTON, MASS.
This study reveals that the com-<®>
holdings of 12 large funds
during the past four years show
lowing
increases
in
fol¬
the
RAILROAD
"*
groups:
will be greater by at least
and
other
000,000 principal amount (of de¬
bentures to be refunded), the dif¬
ference between 4 % and 2 Vz% is
SHARES
preferred
stocks
Oil stocks
and
Bank
'Jfstocks
finance
company
$150,000 per year."
a Class of Group Securities, Inc.
The latest issue of Lord,
VP; r:PPppi C
.
Abstracts quotes
beverage stocks
Motion picture company stocks
Substantial
decreases
'jay
most
for
need
the
issued
a
emphasizes
mal
Steel."
on
the
market
stocks
have
Authoritative
war
and
are
estimates
demand for steel
of
of
post¬
are
these
a
esti¬
decline of 30% in
production after the
typical
-
steel
war,
company
and
Selected
american
%
shares
IMC.
from authorized dealers, or
South
La
Salle
ex¬
nor
Street
CHICAGO
on
these
effects
can
the part of many j
be obtained.
an
issue of Railroad
properly
small
investor can hope to
ob¬
reasonably high rate of
without
taking undue
a
return
pub¬
And it is only
diversification,
supervised,, that. the
chances."
News,
is¬
"Invest¬
reduction program now being car¬ ment for Capital Growth." After
ried out by the railroads. Quota¬ pointing out that two classes of
tions are taken from the March 13 investors are primarily interested
issue of "The Outlook" published in capital growth rather than in¬
come—investors who are in high
by Standard & Poor's.
discussing
as
result of the debt
a
Lord, Abbett is asking the aid
of dealers and holders of Affiliated
Fund
shares
in
obtaining
suf¬
a
Keystone Corp., in a current
jin
improvement
the
;
ficient number of proxies to per¬
known issues
which do not show
in a list based on breadth of
ownership. There is also a wide
up
sue
of Keynotes, discusses
personal tax brackets, and inves¬
tors who want protection against
inflation—the
bulletin
summar¬
characteristics of "Appre¬
izes the
ciation Preferred Stocks," "Spec¬
Fund
to
carry
1
V
In
a
is
appreciation; pre-
recent
ferreds
seeking.
and
ferreds.
now
In both classes the 1943
.
120
--
•
-
Investment Trusts
Dividend Shares
Manhattan Bond Fund
Mass. Inv. Trust
LOS
ANGELES.
BOSTON,
10
634
Post
208
{
Other Issues Traded
Corporation
BROADWAY,
CHICAGO,
Quarterly Income Shares
COURT
So.
NEW
S.
YORK,
Spring St.,
Ofticc
Square
La Salic St.
(14)
(0)
P
utility
finance
company,
food, beverage and motion picture
still
not
large but represent big
of 1939
are
panies,
drug
the end
over
rubber and tire
com¬
manufacturers
and
the air lines.
Missouri
Pacific
and
Chicago,
Milwaukee & St. Paul obligations
the
are
most
defaulted
widely held among
railroad
bonds,
while
sition of the market and
out
some
.
.
:;p
'
....
»
from experts.
"A convenient
v
one
choose good
Because
and
compre¬
a
scientific
piece
of
management should have a defi¬
nite bearing on results.
"Achievements of an organiza¬
tion should obviously have been
above
the
And, finally,
it should be thoroughly experi¬
enced."—From "Half a Century,"
a
booklet
Shares and Low Priced Shares...
,
•'
-'
i
•-
'
,
Keystone Corp.—A current issue
of Keystone Investor.
Leffler
.
Corp.
.
.
Descriptive
leaflets
on
Axe-Houghton Fund and AxeHoughton Fund B.
—
Dividends
Group Securities, Inc.—The fol¬
lowing dividends
per
shareholders of
March
31
average.
issued to commemorate
of Calvin Bullock invest¬
management."
^
}J»
Investment
pay¬
—For First Quarter—
Class—
Regular Extra
Agricultural
Automobile
Aviation
.05
Building
Food
Fully
.05
.04
__
.04
equipment—_
.04
.05
.05
__
—
.04
administered
.04
.04
shares—
.11
.03
machinery-,
.08
General
bond
Industrial
Investing
Low
.07
.03
.04
_
Electrical
.05
.02
„
.02
_____
Total
^
.05
l
—
Chemical
.04
.05
"
.08
.04
.03
.10
—
.03
.05
,05
.10
.05
Mining
—
.03
.07
—
.03
.08
—.03
ir,
Petroleum
Railroad
Railroad equipment
Pt"el
—
—
,
.14
.05
company
priced
Merchandising
.05
__
.06
Tobacco
Utilities
.04 -:
•
.08
•
•
•/
.05
.06
.05
.01
.05
,02
.03
Scudder, Stevens & Clark Fund,
Inc.—A
&
holders
dividend
of
75
cents
a
of
of
March 20 to stock¬
of record March 9, 1944.
State Street Investment Corp.—
Research
A
issue
share
share payable
Literature
Securities
to
record March 20, 1944:
50 years
ment
....
able
"Yet how does
hensive
.
Railroad Shares, General Bond
on
for in¬
method
management?
brains.
.
.
advice Group—Revised portfolio folders
request
ipated Developments in Commod¬
»
.
r
.
should
vestors
Invest¬
ment Timing discussing "Unantic¬
i
.
.
Corp.—Current
'?
pointing,
fallacies in the various
"Averages."
.
National
•.
.
.
~
(4)
m.
issues),
preferreds, bank
Selected Invest¬
ments Co.—An
example in the
made is that" a "functional" type current Selections
showing how
of portfolio diversification where¬ diversification paid in a specific
by investments^ are arranged ac¬ instance in the portfolio of Se¬
Hugh
cording to the job they are ex¬ lected American Shares.
pected to perform rather than on W. Long & Co.—Current portfolio
the basis of tegal type is less cop- folders on New York Stocks and
Lord,
fusing and more accurate even Manhattan Bond Fund.
though in certain instances it may Abbett—A revised portfolio folder
on Union Common Stock Fund A
result in the placing of a bond
and the monthly Composite Sum¬
in the equity section of the list.
V
-'V'*-,-'
❖
€'i > I', -•
mary covering all Lord, Abbett
,yX
lvwi
»•-.{
*'■»'»
'
,<
'• '".VV-"It seems self-evident that in¬ sponsored funds.
Distributors
George Putnam Fund in its
March Portfolio Review. The point
(5)
ST., BOSTON
';.p
asks
;!•
PARKER CORPORATION
ONE
"
s
.
Research
The
y
"It would seem that one should
price-earnings ratio is far below
that of 1937, particularly so in the choose a firm or group of men
ers
which will result from this
appreciation preferred class. As whose sole interest is investment
proposed refunding.
"The gain stated in the bulletin, this latter management—not conducted as a
is so great that the expense
class of stock "is extremely vola¬ side line.
of the operation will be gained
"It should seem that such an
tile and should not be used where
back in the first six months, and
reliable income is a requirement. organization should have sufficient
income to employ the best avail¬
National Securities &
or
»<•
Bond Not a Bond?"
letter, Lord, Abbett
Prospectuses upon request
dealers,
installment
an
emphasizes the gain to sharehold¬
.
be obtained
1
r
a
Common
ulative
Securj^tesJSeries
may
1
■«
,
"When Is
out
NATIONAL
authorized
companies as to
objectives and poli¬
difference among
Stocks"
and vestors to benefit from experts'
"Fast-Moving Low-Priced Stocks," judgment is to purchase shares in
its proposed refunding program.
three classes which are available a well-managed investment fund.
Proxies representing over half of
"Such shares should give inves¬
through the respective, series of
all shares outstanding have al¬
tors a greater degree of safety, of
Keystone Custodian Funds.
ready been received,
However,
An earlier issue of Keystone de¬ income, of marketability and of
certain of the proposals require a
potential * appreciation—combined
two-thirds favorable vote, and it picts the price-earnings ratios* of
preferred stocks — income pre- —than any other type of security,
is these additional
mit Affiliated
company
seeking
broad
through
tain
Distributors Group has also
holding
a
_
lished
(principally defaulted
second-grade
..
general
opinion,
will be construc-
to
and
investment
percentage increases
opportunities among the less wellcontinuously
Adjustment of investment port¬
Trading Markets:
Prospectus
Most funds are
issues.
vestment
amounted to $1,441,000,-
the com¬
road bonds
be likely to
list
these
particular stocks if company securities. Three groups
asked to name 10 outstanding in¬ in which combined holdings are
ments in many cases
able
from
currently purchasing,
would the individual manage¬
the four years have been in rail¬
—
tive."
•
sponsor
be obtained
SELECTED INVESTMENTS CO.
135
Association points
out, does not necessarily represent
the issues which investment com¬
panies are
appeared
Large increases in holdings over
•
110 investment
proxies that the
Prospectus
may
of
extreme
an
Contrary
the folder gives the example of
a
derstanding
rail bonds
Assuming
is
stocks
war.
mates.
steel
66%.
investors of the effects of peace.
quoted
earnings of steel stocks
projected on the basis of the
conservative
reserve,
popular judgment. Their pres-v
reflect a misun¬
the
most
790,280
381,100
—
have
groups
$333,000,000 dur¬
folios to the changing outlook is Southern Pacific, Northern Paci¬
states the article.
shown by comparison of recent fic and New York Central, in that
said and done, a
holdings with those of four years order, appear to be the most fainvestment trust
(Continued on page 1106)
ago, which was about the time the i
should be the ideal investment
vehicle
for people
of small
means,
for it offers the only
Massachusetts
Suitable for inflation protection or ity Loans."
practical medium through which1' where maximum appreciation pos¬ Distributors
R e c e n 1
issue
of
broads, diversification of risks
Brevits analyzing the present po¬
sibilities are desired."
company
steel
hacT'fcluring this
1,361,180
_
gain of
ing the year,"
"When all is
well-managed
ent low prices
abnor¬
which
Co
assets of
000,
ample of the effects of mistaken
folder
distinctly
action
this
undervaluation
"Present
Group
This
of
would actually increase
folder, "The Effects
new
Peace
contingency
earnings
steel
of
American
these
recently.
trusts
elimination
profits tax and the
of the excess
generally accepted as having good
post-war prospects."
Distributors
223,030
cies, which results in considerable
variance in security holdings.
"At the end of 1943,
shows that, with the
effort and into those
week
Electric
in
277,276
bined
connected
closely
ing their interest in certain stocks
317,100
Nickel-
Company
investment
interested in this field.
equipment stocks
war
good reading for everyone
makes
63 wall street—new york
the "distinct trend away from in¬
Last
Incorporated
GROUP#
Mr. Bartholet draws attention to
dustries
Prospectus on Request
^DISTRIBUTORS
occurred
Steel stocks
with the
,
-
in the holdings of
Metal and mining stocks
Chemical stocks
Electrical
Abbett's
the column, "T.
G, M. Says," which appears regu¬
larly in the Boston "Daily Globe."
"Investment Trusts Are Growing"
is the title of the article, and it
Food and
Rubber and tire issues
3 cents
On the $10,-
share per year.
per
Railroad bonds
Utility
taken
investment companies are renew¬
230,984
182.825
This list, the
thereafter net investment income
328,325
Ward
trie
iniiiiiiiiuiHuuiiHiiuiuiimiiiiiiihE
bined
substantial
equipment
also
place. However, signs that some
331,446
Standard Oil of N. J.
54
appearing elsewhere on this page, the National
Association of Investment Companies reports on the 1943 year-end
holdings of 90 investment companies.
have
■
Name of Stock-—
Stock
article
an
of
in
the follow¬ holdings of chemical stocks, steels,
ing:
Mutual Funds
representative
group
substantial decreases
a
funds;
31, 1943, among 90 port¬
Dec.
on
In
Oil Com¬
holdings at the present time, Standard
vestment comoany
American Business
industries in popularity as in¬
Oil stocks lead those of,all other
[
3RQABBEITGR
Co's
Stocks Most Widely Held By Investment
:
••>V>:3-.&vviy:-.v>',,.\^Viv;',<^.->;itf;.v.>v.NW,'v.v.v.w.'.vXi:*^»*>>"-viV.-.v.-tf,%vv,-.¥.-'.'W"■•■«.-rtv.vAy.'/-A%-.w/i«wi<<«<,VA Sv^X ■•X '
dividend
of 50
cents
per
share
15 to stockholders
record March 31, 1944.
payable April
Volume
THE COMMERCIAL & FINANCIAL CHRONICLF
Number 4264
159
with John C. Korn, Acting Secre¬
OomHIee Of Hew York
Invasion: Babson
(Continued from first page)
The enthusiasm generated by the
news
of a successful land inva¬
sion
should
ahead.
stock
move
This first
prices
must then
move
be digested. The following course
of the market for some little time
then be quite markedly af¬
fected by the success or failure
of Allied progress in the various
may
invasion theaters.
inations
ernors, tor
Feb. 25 that a meet¬
attend
that nominees
For Rise
advised
were
the term of
might be suggested
by letter. It was also stated that
good
news
would "for the convenience of any mem¬
normally make stocks act well. bers or
partners who may wish to
For the most part, the tax bill
Prevalent
Governor
who
shall be
an
investors.
Results
of the
members of the Exchange.
involving direct con¬
public, incumbents
pointed out that
the
be members
no
allied members
or
of
the
mittee for
or
Exchange
James G. Purcell.
Exchange,
are
Governors
correspond
of
incumbents
number
for the reason that
above
will
Thatcher
be
reduced
as
provided
**As
Nominating Committee, for the
of one year: Five members
of
the
Nominating
Committee,
provided in the seventh
paragraph of Article II of the
Constitution, Joseph Klingenstein
is not eligible for re-election as
three of whom shall be members
appear
satisfactory results..
Renegotiation is not unduly re¬
ducing previously reported profits.
Money in circulation has reached
astronomical heights.
Loans on
life. insurance policies are ex¬
tremely low.
Household ; mort¬
gages have been greatly reduced.
Employment has been well main¬
tained.
>*-
^
»
*VVm*
j
v
'i
a
term
and two of whom
shall be allied
member of the Board of Gover¬
'I
nors.
>>;
'
^
*
Dividends to
Equitable Policyholders
Increased
Salaries and wages have
■
continued high.
Brokers loans
are
very low.
pyiHE continuing progress made by The
JL Equitable Society has made it
possible
extend additional
advantages and services
People have been getting out of
debt.
They
to
buying their quota
are
of Government Bonds and at the
to our
time piling up excess cash.
same
policyholders.
Among these is the increase in the dividends
to be paid to policyholders in
1944, applying
to most
types of individual policies. yyj
.
Ultimately, the bulk of this money
will go into the stock market. A
deferred demand for stocks is
cumulating just
is
'
ac¬
a
deferred
demand for all sorts of
consum¬
as
This action reflects the favorable trend of
mortality experience in
When the majority of
goods.
ers
recent years
and the
continued financial
progress
right to fulfill their desire to own
stocks, we may have a boom that
will make prices exceed those of
of the Society.
During the past several ,years, the Society has
been
substantially strengthening surplus and
reserves. This has now
progressed to the point
1928-1929.
where it is felt that
investors decide that the time is
full
The total
of
hope one
day and in the lower ranges of
despair the next.
Peace stocks
have
been
investors
the
are
touted
so
became
that
would
be
time.
They
Babies'*
in
over
sold
and
went
ond front" did not
their
into peace
a
same
At home with the family
ex¬
of Richard R. Mann, Equitable policyholder of Columbus, Ohio
The Future Is
World
War
II
was
quite ready to fold up, Hence,
they stampeded back again into
I
stocks.
stick
to my
forecast that the
European phase of the war will
not
be
over
until
after
vember elections.
the
No¬
It will then be
long, hard road to Tokyo. Con¬
sequently, I never went overboard
qome time after the war is won, Dick
k5 and Bernadine Mann plan to build
the house
they've dreamed about ever'
since
stocks. I have maintained
best hedge, whichever
way the war goes, is a diversified
list of war-peace stocks.
These
peace
that
♦
the
are
bound
may
happen.
i.
to
benefit
whatever
Best Policy for the Investor
Investors
headed
should
not
bull-
be
headed
in
the
went broke
taking
a
capital
direction.
wrong
Moreover, remember
no
one
ever
profit. Hence,
the successful investor must be
well as
Generalship and
seller
buyer.
as
a
a
good
intelli¬
gent staff work are as essential to
kitchen. Dick
have
portfolio
to the success of
as
Investors should have
a
based
the
program
This
way,
this
upon
now
trend
will
broad
get under¬
closely linked
to the invasion time.
program
definite
points upward.
however, is
Even
a
should
also
have
The investor
his
funds
in
stock groups behind the averages
rather than in those groups ahead
of the averages."
modern
furnace he doesn't
*
well
the Manns
noWf
Columbus, Ohio. Dick is
the;
house, in
tent a
a war
worker
at
.CapitolManufacturing* and'Supply
Co. The
Equitable insurance he owns is
playing an important part in his plan for
living and preparation"for the future.r.
Dick himselfwaspneof eleven
children,
as he
says, "We had
times. When I started
plenty of hard
working, I made
up my mind that," as farlas.possible;1 I'd
see there were no
rainy days for my fam¬
ily. Every family is entitled to security,
and life insurance is the best
way I know
to
get it."
**' *"
'
*
*
*
.
,
,
•
The Manns look
forward? some day} to
'taking it easy," His wife says, "Dick
and I
were
surprised
f yp
I Ifl fa
to
find1 how much
older years, as
protection now, we were able to
arrange when we worked out a program
with our Equitable agent combining our
Social Security benefits, Dick's group in¬
surance and his individual
Equitable
policies."
'
At the moment,
little Anita
that whatever
careers
there will be money
"I
never went
to
to
H
V
*
the nation, The
vided for members of the Armed Forces under
'*.
Using
a part
of their
current
*■
y
earnings to
set up
thousands
$294,544,000 of
new
Equitable protection last year under indi¬
vidual policies.
Equitable group life insurance
permanent protection for the future,
of far-sighted families created
says
the children choose,
increased $352,548,000.
In all, 3,050,000 per¬
$8,445,578,000 of Equitable life in*
surance—a record
high.
•
for their training.
sons
college, and neither
you can bet our
own
Bernadine, but
children
going to have the chance
one im¬
portant part of my Equitable program—
a
guaranteed education fund for each of
the youngsters. To us that's the American
way—knowing that your children will
have a better opportunity than you had."
we
service
a
protected by individual Equi¬
policies.
National Service Life Insurance.
she
is going to be a trained nurse when she
grows up. One thing the Manns know is
did
JRight
our
our
Equitable has
developed, through its group insurance facili¬
ties^, a program of world-wide life insurance
protection for civilian employees of the United
States Government
serving overseas. This
gives the American serving his country as a'
civilian, protection comparable to that pro¬
as
*
set
of this nature must be
at broadly.
wants a
a
stoke.
*
*
looked
for
eager
retirement income for
are
During 1943, the Society's assets crossed
the three billion dollar mark. The
missed," Dick says. "That's
and
an
army.
When
to
married,
is
Seven-year-old Anita's de¬
sire is a
big yard so she can have a dog,
and
five-year-old Shirley asks for "a
swing that hangs, from a tree." Richard
Jr., age one, Is too. young to express an
opinion, but he'll want plenty of room
to
romp in.
the management of an investment
trend.
were
It is sensible at tim es to
.
take losses in order to free
good
they
Bernadine
a
on
As
Dick Mann's Family
not
war
Bright for
to, the families of 547
Armed Forces who died in
$1,552,000
service while
table
investors then decided
that after all
of
was
members of
"sec¬
a
an average of $587,000
paid to Equitable families—
total of $214,388,000. This included
pay¬
ments
We also experienced some
fighting in the South Pacific.
These
on
31, 1943
in benefits
is¬
when
come
prudently be made.
aside for dividends
Every day of 1943,
war
pected.
hard
amount set
is $41,400,000,. compared*
with $36,802,000 on December
31, 1942,
,
short
"War
very
The establishment of
sues.
December
that
of the
a
increased'distribiition
many
convinced
European phase
an
of dividends for 1944 can
Most Investors ,Are Fickle
Investors
*
In the evening,
*
like to talk about
plans for the future. That new home
they will build, "just a nice bus ride from
Columbus"—the advantages they plan
to
give their children—their own hopes
for leisure some day.
Society
pur¬
$458,850,000 of U. S. Government
securities last year, and at the end of 1943
owned a total of $981,351,000.
!
Today Equitable funds are helping to speed
victory through investments in the securities
of the Government and American industries.
*
their
When the
rected
war
is won,
into sound
and
Equitable funds, di¬
diversified
business
.enterprises, will help industry provide jobs
for our returning soldiers and for workers now
making war equipment.
president
other American families,
these are the things the Manns are build¬
ing toward, saving for, planning on.
£ A IIIV A ® I E
K
U I I m E» lb E
chased
when the baby has been
pat to bed, the Manns
Like
so
in
Article II of the Constitution.
show
ports
to
not
does
the size of the Board of Governors
M. Brown and Laurence M. Marks.
allied
the
shown
members of the
incumbents,
elected
with
Gratuity Fund,
of
number
*The
be
for the term of three years: Two
Trustees who
the Nominat¬
ing Committee for 1944: David W.
Smyth,
Chairman;
Stephen A.
Koshland, Secretary; F. Edward
Bosson, Herbert F. Boynton and
and Charles C. Renshaw.
Trustees of the
Nom¬
1945.
The following is
and having their prin¬
cipal places of business outside of
the Metropolitan area of the City
of New York, who shall be gen¬
eral or limited partners in mem¬
ber firms engaged in a business
involving direct contact with the
public, incumbents Allan H. Crary
of
A.
It is
Governor and
no
member of the present
inating Committee is eligible for
election to the Nominating Com¬
residing
individually, the Nominat¬ member or non-member residing
ing Committee will hold meetings and having his principal place of
recent Bond Drive are gratifying.
business within the Metropolitan
on each Tuesday and Wednesday
Some leading corporations have
during March. Appointments may area of the City of New York, who
increased dividends. Annual re¬
be
arranged by communicating shall be a general or limited part¬
favors
member firm engaged in
non-members
year;
one
a
with
Ward; Two Governors who shall
the
Coleman; for the term of three
*Four Governors, who shall
be members of the Exchange re¬
siding and having their principal
places of business within the Met¬
ropolitan area of the City of New
York, incumbents Francis M. Ba¬
con 3rd, Robert P. Boylan, Henry
Upham Harris, »*Joseph Klingenstein, John K. Starkweather; *One
the purpose of re¬
ceiving suggestions for the posi¬
tions to be filled at the annual
to
for
years:
March 8, for
unable
Favorable
made
ernors, who shall be a member
the Exchange, incumbent, John
electiop. to be held in May. Those
Current Factors
be
in
business
tact
1103
>
Albert H. Gordon and Francis T.
in and nom¬
occur
to
Chairman of the Board of Gov¬
a
ing of the Nominating Committee
would be held in the Board of
Governors' Room of the Exchange
on
are
that
following positions: Board of Gov¬
The New York Stock Exchange
on
a
vacancies will
Stock Exchange
announced
ner
tary of the Exchange.
The announcement states
ieefing Of Nominating
—
many
i|FE assurance society of
the united states
A Mutual Company Incorporated under the Laws of New York State
YOU
WILL
ENJOY
READING
Dick Mann's family in
the
story
of
"YOUR POLICY"—The
'
Equitable's annual report. This booklet
tains
con¬
practical information, with actual family
programs worked out. Ask any Equitable agent
for
a
copy,
or write to the Home
Office, 393
Seventh Ave., New York 1, New York.
Thursday, March 16, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1104
The Outlook FoY-1944 Majestic Radio Opens
Canadian Securities
(Continued from
eating,
chemicals,
rubber
and
meat packing..
These are among
Provincial
Government
the most essential for the
Public Utility
Municipal
fort. On the other
lumber
of
& Montreal
Direct Private ]Viree to Toronto
and
war
ef¬
hand, production
cement /declined
because
of the curtail¬
building construction, as
of the military and naval
sharply
Consumer Adv. Program
■vi..
1090)
page
increase in
tion of the enormous
that has been brought
about by the war.
In many re¬
spects these problems are more
difficult than the problems of or¬
capacity
ganizing and producing for war.
ment in
Wood, Gundy & Co.
most
London, England
Vancouver
The
war purposes,was
completed.
Street, New York 5
Winnipeg
Montreal
Toronto
Security Prices
on
naturally arises
upon security
prices of this important change
The Year 1944
,m the underlying trend of busi¬
This pattern* of industrial pro¬ ness activity which might start
duction suggests
that industrial this year. During normal times
activity as a whole is close to a any sharp decline in business ac¬
construction
"Incorporated
14 Wall
for
Effects
question
'to
as
effect
the
Majestic Radio and Tele¬
Corporation caused the ad*
vertising world to raise its eye¬
brows and count Majestic as one
of the really aggressive factors for
The
vision
post-war radio business. - ,
Majestic opened its first con¬
sumer
advertising campaign in
key metropolitan newspapers with
the Majestic Radio News, a col¬
which
feature
umn
slated
is
to
month. The feature
of this column is a panel contain¬
ing "The Standings of the Stars,"
twice
appear
list
a
a
the
of
rankings of the
15,
accompanied by top nighttime shows based on the
Radio
Reports.
These
declining earnings, dividends and Hooper
confirm this conclusion.
Recent security prices. But these are not standings will be published after
The Government bill now in its last reading in the Canadian
estimates
released by the War normal times, and, the decline in each fortnightly Hooper Report.
House of Commons to establish the $100 million Industrial Develop¬
Production Board show that pro¬ business activity from the p.eak
Together; with the Standings;
ment Bank, provides another example of Canadian financial foresight.
publishes
interesting
duction of munitions in 1944 may of the war boom should not have Majestic
The primary object of the bank is to supply capital assistance to
facts
about
radio, news items/
rise 28%
above the volume of the same adverse effect upon se¬
industry, with particular consideration to be given to the financing
service hints, down-to-earth dis¬
as
during peace
1943, but that it may be slightly curity prices
of small enterprises, and the whole scheme is part of a program
cussions of post-war radio. Parker
times. Common stocks as a whole
less than the rate of
peak for the war period. Contem¬
plated
armament / expenditures
Canadian Securities
tivity is usually
,
aims
which
at
of<S>
level
high
a
post-war employment.
—"
?
^
of
this project
was inspired by the astonishing
wartime growth of new indus¬
tries which have been estab¬
It is possible that
CANADIAN BONDS
Department of Trade
Consequently,
Canadian industry has not only
r
.•
••
become
'v
:
?
-
•
■
-
..
<•"
diversified to
•
MUNICIPAL
CORPORATION
is
at
least 50 "refugee" industries have
been established. Among them is
the Bata shoe plant in Ontario,
arms
activity which caused the Fed¬
eral
Reserve
Board
Index
of
of
.
Production to
CANADIAN STOCKS
1939/ the
ing
109 dur¬
rise from
year
of
sponsible after the war for a sub¬
stantial proportion of the Bata
November
the out¬
•
■
-
the
INCORPORATED
NEW YORK 5,
growing and processing plants in
the world by the Heskey Flax
of ;/ declining activity;- is
set
in.
The many
deferred
de¬
have been The4 accumulated
tackled so successfully by indus¬ mand for many products and the
try
since
the- war in
Europe large volume of savings available
started, will then be followed by Should insure a high rate of ac¬
an
entirely new series of prob¬ tivity;-in a number of; industries
lems/These ^
the re¬ immediately following the war.
N. Y.
the
Czech
scheme.
this
that
wood,
was
dis¬
refugee
developments
and
are
moreover
term' issues
and
also
not
they
not
description,
least
does
foster
and
last
Government
a
everything
in
development
its
reason
activity
the
in
market,
to advance
once
is,
to
far
so
restore
the
more
Canadian
dollar
and
sterling,
Thus
the
automatically
city's
the
U.
S.
pound
fixed
dollar
at
in
of
higher
towards the successful completion
ceedingly difficult problem would
thereby be very simply solved.
of all arrangements in connection
debt
.
v
Turning to the consideration of
the possible future course of the
reorganization
the following:
millions
$18
Railway 5%
certificates
equipment trust
which
will= pre¬
sumably be met out of sink-
ing fund account.
."
Canadian
millions
$26
64 WALL
Company
WHitehall 3 -1874
•
■
■
June
5s
of 1954,
/ private,; refunding operation'
has already been, completed.
$18 millions Ontario 4V2S of Sep;,;
tember ■ 1.
;. j:i;;:
$3 millions British Columbia 3V2S
of March 31, which have al¬
/:./•.'■
ready been refunded.
$4 millions British Columbia 3V4S
of December 15.
v;
-/•>
/r: public
In
-
v
Government
Provincial
•
Municipal.* Corporate
of the. fact
issues
these
The
of"'Selectivity
Importance
'
During the last few years, as a
result of the character of the war
boom, the greatest success in in¬
this
do well
well
that
in
wilL not
be
re¬
in
re¬
country, investors would
to do their own financing
advance
to
that
will
sion
to
for
come
avoid
The
with
come
peace
while : others
are
the
conver¬
to
likely
call
cline in business
activity/employ¬
which can- be
expected, many individual indus¬
tries
and
companies may earn
more money after the war ends.
The selection of the securities of
ment
a
pos¬
repetition of the wild scurry
place in July last fol¬
took
and
wages,
such,
companies,
ance
of
investment
From
"The Broad
issued by
season;
The
>
same
is
radio fans in the country
are more
than all the sports fans combined.
shouldn't
Why
own
they
their
have
league standings? People are
arguing about which
is the best, or how one
constantly
program
comedian
has
a
another.
than
greater following
Now
Majestic
is
going to give them fuel for their
fires. ; Aside
from
that," : Mr.
*
Ericksen; continued/ "We; believe;
that the folks who are going to
buy radios after the war when we
can
make them, deserve some-,
thing more than a dramatic story
of how we're helping to win the
war.'/..
;
•
/Majestic is confining this adver¬
tising to radio pages of leading
newspapers. Foote, Cone & Belding
who
conceived
the
idea,
worked out a system for speed in
handling these reports so that
they appear quickly after the tab/
ulation of the figures by' Hooper.
Foote, Cone & Belding was re¬
cently appointed by . Majestic to
handle
its
advertising.
"News¬
Ericksen,;
Mr.
said
papers,"
choice
"seemed the
most logical
for these ads.
They're news and it
they belonged on,
seemed
radio
to
us
Furthermore, radios
pages.
locally by local dealers
and these ads will appear in the.
are
sold
themselves
dealers
the
recognize."
papers
Majestic and Foote/ Cone
Belding officials feel that this
Both
&
and
widespread
itself a"
have
will
campaign
interest
will
prove
vehicle that offers almost unlim¬
ited merchandising
possibilities. /
Baltimore Exchange
Sells Its Building
Howard R. Taylor,
the
—
Street Letter"
Exchange,
that the
11
March
on
had
Board
of
firmed
the sale of the exchange's
Governors
con¬
office building, 210 East
Street,
the
to
Redwood
Watner, of
Building.
This is
Abraham
American
learned from the Baltimore "Sun"
badly, is
for suc¬
managers.
President of
Stock
Baltimore
announced
the avoid¬
of companies
that might do relatively
the job that lies ahead
cessful
the
true of football, hockey and bas*
ketball fanSi People are interested
in how their favorites rate. There
and
securities
league standing every day
problems
a
of March
12, which added:
The sale, however,
'effect
tions,
the Broad Street Sales
on
as
a
the
will have
exchange's
no
opera-,
long-term lease of the
quarters now used for local stock
Corporation, New.York City.
market -activities
has
been
ar¬
purchaser.
//
After owning the building in
which it has operated throughout
the 105 years of its existence, it
ranged with the
that some
Canadian, authorities
sible
•
issue../' /'- *•'./.' /
fraining from raising new money
in
canadian securities
view
placed, in addition to the dwin¬
dling supply of external bonds of
Canada, and .the present policy of
the
«b
ning of the decline in business
activity
that might
come; this
year; does
hot need to have a
serious effect upon security prices,
at the
during
.
callable
1; it is rumored that a
Railway
of
STREET, NEW YORK 5
to
begin¬
policy of / even greater.
,/ /., ', selectivity' in choices. of invest¬
Pacific ments. Despite the over-all de¬
.
&
the
vestmentmapagendent \ has!
$5%~ millions New Brunswick -3s
; of June 1 and July 1, which
V
will shortly be refunded by a
Taylor, Deale
that
,/ *
i
relatively
badly/
Canadian Pacific have done well.
demption.
be
terms
are.
lead
all
considerations
conclusion
Canadian' "National from following a policy of selec¬
5s of/ July,
1969,
tivity in. the choice of securities.
which will probably be called:
Many individual securities and
on
or before. May
1 for re-' groups of securities have done
to
would
10%
The total is over $1.40 mil*
in¬
volved
raise the value of the pound also
10%.
issues ; which mature,
likely to be redeemed this
of
$57 ; millions
Railway
Canadian
unchanged the relationship of the
a
-
lions and the principal issues
suggested.
the
than its present level, and an ex¬
the
are
year..
cur¬
outstanding issues at higher prices
and further headway was made
with
or
discount,
to parity with the U.' S.
dollar, and in order to maintain
financial
debt plan and its consequent mar¬
ket repercussions. There was con¬
siderable
the
volume
dollar
of; this kind.
the
activity in the
of
exchange rate still
problem
rency
That
to
Montreal
was
basic
There was
only practical solution of the
the prin¬
feature
more
section
profitable utiliza-
factor of considerable
importance is the unusually large
market,
ing to note that little now is heard
the
global exchange plans.
There is, therefore, all the more
which
cipal
little
extent, and the
of
but
With' regard to
the
events of the past week,
advanced
more
In this connection, it is interest¬
of
power
once
remained at 10 9/16%
rates, fresh water
everywhere, a tremen¬
material
market
-
marked up about 5
but the "free"
low
raw
a
internal
an indication of things to
Canada is the industrial¬
of
were
yield points generally.
ist's paradise—cheap factory sites,
an
abundance of
hydro-electric
wealth
Otherwise, the
comparatively quiet.
However, the shbrt and medium
because
lightness and freedom from
odor, provides ideal material for
food packing.
every
to
These
the
of its
dous
corporations
willf actually; increase despite a
drop in their volume of business.
'many
earnings ..of
which is already going on to some
A
supplies
,
conversion to civilian production,
of
neglected hemlock of British Co¬
at
effect on earnings after
taxes; in the case of most corpora¬
tions.
If excess profits taxes are
eliminated
or
reduced
sharply,
erate
hitherto
utilization
power
proportion
of
corporate
earnings is today paid out in taxes
that any drop in earnings before
taxes will have a relatively mod¬
large
interesting enterprise
A further
come.
time after the war. Such a
some
difficult problems that
RECJOR 2-7231/ NY-1-1045
.
with Germany is over, a
war
period
likely
Products Ltd. of Ontariur
provide
long
decline in production
likely to take; place, but once
is
TWO WALL STREET
velopments in the textile trade,
notably
wool-combing and the
establishment of the largest flax-
accidental
As
1943.
important
A. E.AMES &CO.
optical glass works, and new de¬
These
to 247 in
as the
with Germany continues, no
war
trade.
Other industries,
mostly new departures for Can¬
ada, include diamond-cutting and
industrial diamond manufacture,
export
covered
prevailed in 1939.and many of
sharply.
break of war in Europe,
lumbia.
that
and .construction will
which, it is believed, will be re¬
is the
selling at lower levels than four
"War Stocks" are sub¬
stantially below the average prices
years ago.
.
an
amazing degree.
During the war period, it
conservatively estimated that
aircraft, trucks
Output of Navy
the so-called "Peace Stocks" are
Total: war also lower in price. The only ones
expenditures will only rise mod¬ selling at higher prices than in
erately
from now
on,
and
if 1939. are the "Bridge the Gap"
Germany should be defeated dur¬ stocks, including such, issues as
ing this year, they ipay be. jQwer motors, office . appliance Mocks,
than the expenditures of last year. motion picture stocks and oils.
Corporate taxes, primarily the
The year 1944maw therefore
excess
profits tax, will in/ all
prove to be the turning-point in
be reduced sharply
the long and sharply rising trend probability
during the war but it has
also
'
in
be
curtailed
be
PROVINCIAL
f
tremendously increased in vol¬
ume
will
artillery.
small
GOVERNMENT
Commerce.
did not reflect the
Among individual items
ships and merchant ships will also
show some increase while tanks,
from the
and
Advertising
for
Majestic,
ex¬
plained,- "There , isn't a baseball
fan in America who doesn't look
1944
encouragement
every
H. Ericksen, Director of Sales and
and
the
European
received
rise in business
activity 1 that was" generated by
munitions, the biggest rise in by the war.. Many stocks are now
1943.
of
Dominion
by
refugees who have
in
lished
production
of munitions in the fourth quarter
/
Attractive Situation
•
Scherck,
Richter
Company,
Landreth Building, St.
Louis, Mo.,
was
have
prepared an interesting an¬
alysis of Ely & Walker'Dry Goods
Co/ which
calls, attention
to
able for the
the
current
earnings,
and
large common stock equity. Copies
of this
analysis may be had upon
from
Scherck,
Richter
lowing the surprise redemption of
request
the Dominion 2V2S and 2 Vis.
Company.
-
/.V.
/
/
bv
members
of
the
organization to retire
business, Mr.
from the, real estate
unusually, large inventory adjust¬
ments
which
have„ been
made,
favorable
decided
exchange that it would be advis¬
Taylor stated.
t
/
The oresent structure w°s built
immediately after the Baltimore
fire.
Comprising six floors, t^e
building enrf-n^g numerous of¬
fices
occupied by tenants.
-
THE COMMERCIAL & FINANCIAL CHRONICLE
Volume 159 "'Number 4264
We hear a Some of it these soundaboutpractical,
days and postwar
planning. great deal
seems
BUSINESS
REPORT
FOR
In accordance with the Annual Statement
as
1943
of December
filed with the New York State Insurance
and
31,1943,
some
While
Department.
agencies
OBLIGATIONS TO POLICYHOLDERSf BENEFICIARIES,AND OTHERS
Required
Policy Reserves
by Law
•
interest, is required to
future policy benefits.
:
:
255,604,009.54
Policy proceeds and dividends left with the com¬
pany at interest to be paid out in future years*1
Set aside for payment in
Other Policy Obligations
Claims
in
.
52,027,949.91
•
♦
of settlement, estimated
reported, premiums paid in
process
claims not
.
yet
1944
or
on
Accrued
.
«
*
.
.
.
.
20,523,324.00
•
.
payable in,
To provide against
their value.
.
.
.
possible loss
Miscellaneous Liabilities
...
*
or
.
.
.
62,347,000.00
fluctuation in
......
TOTAL OBLIGATIONS
.
v
S. Government
.
•
•,
23,495,304.45
*
•
...
$6,057,267,833.57
.
....
.
.
.
.
.
$2,353,375,600.15
.
.
...
.
2,028,916,055.62
i>
■
48,213,934.88
are grow¬
individual is uncertain;
Knowing these things,
some
30 million people in¬
Metropolitan are providing definite
measures
of protection against these
uncertainties of life
some
through
29 billion dollars of life insurance.
In addition to
providing
an
anchor to windward for
the individuals involved and for their
families, the
to be of
lizing character during the postwar period.
This is Postwar Realism of the
Canadian Provincial and
Municipal
any
thrift of these policyholders is bound
172,233,733.01-,
.
U. S. State and Municipal
Railroad
hardships.
and that in accordance with the immutable
laws of
sured by
$2,181,141,867.14
...
Canadian Government
Other Bonds
face economic
..
ASSETS WHICH ASSURE FULFILLMENT OF OBLIGATIONS
National Government Securities.
U.
the future, like the past, will experience good times
nature, heads of families will continue to pass on.
the business of 1943..
Reserve for Investments
has to be
toward this end.
ing older; that the life of
Includes estimated amount cf taxes
war
nothing should interfere with all-out efforts
They know that they, like everyone else,
advance, etc.
Taxes Due
and
and bad; that when bad times come,
many people will
1944 to those policyholders eligible to receive them.
>
a
stabi¬
,
highest order.
89,749,717.58
...
Public Utilities
.
547,354,089.75
•
.
829,416,829.35
....
Industrial and Miscel¬
laneous*
■
Stocks
All but
.
*
.
•
.
'
.
$680,138.00
.
are
Farms.
<
.
Other Property
Loans
on
■." i
Preferred
First Mortgage Loans on
Metropolitan Life
514,181,484.06
.
or
■'«
i"""~^t-Qa====°vS7^3.2fl>53.8iQl.,l'
Guaranteed*
'
.
Real Estate
.
.
.
924,476,078.57
.
.
.
.
.
Frederick H, Ecker,
87,981,134.22
.
insuranceCompany
408,746,108.58
.
.
•
836,494,944.35
Policies
....
•
(A MUTUAL COMPANY)
.....
policyholders on the security of their
policies.
Made to
Real Estate Owned
/
.
chairman of the board
Leroy A. Lincoln,;
366,977,963.12
*
1
■
president
$59,821,102.96 real estate under conand $143,580,643.66 Housing
Projects and real estate for Company use.
,
hm
,
Includes
tract
Cash.
of sale
.
.......
.
OtherAssetS
•
*
•
1 Madison
vjH
135,436,989.06
.....
158,504,218.48
......
..»■.■»
Avenue, New York 10, N. Y„
deferred, interest and rents
accrued, etc.
Premiums due end
due and
TOTAL ASSETS TO MEET OBLIGATIONS
Assets exceed
'
$6,46.3,803,551.59
Obligations by $406,535,718.02. This Safety fund is
Metropolitan Life Insurance Co.
I Madison Avenue, New York 10, N. Y.
divided into
Special Surplus Funds
•
«
•
Unassigned Funds (Surplus)
These
cushion
*
•»•••••$
•
•
•
•
•
•
>
•
14,525,000.00
Gentlemen:
392,010,718.02
funds, representing about 7% of the obligations, serve as a
against possible unfavorable experience due to war or other con¬
ditions.
Please send
to
me a
par
ing for the Peace."
Name.
of exchange.
HIGHLIGHTS OF 1943 OPERATIONS
Life Insurance In Force, End of
1943
*
.
.
Paid-for Life Insurance Issued During 1943
*
.
Amount Paid to Policyholders During 1943
,*
.
.
$29,180,396,994.00
2,305,262,410.00
554,873,243.55
copy
of
your
annual report
policyholders: "Serving in the War—Build¬
t
NOTE:—Assets carried at 5304,333,580.62 in the above statement are
deposited with various public officials under requirements of law or
regulatory authority. Canadian business embraced in this statement is
reported oh basis of
a
of.
are sure
They know that economic tides ebb and flow; that
105,674,814.00
•
•
thinking of postwar planning, there are
things that realistic individuals
won
Policyholders' Funds
Reserved for Dividends to Policyholders»
literally hundreds of public and private
are
They know that first and foremost the
payment of all
assure
"crystal gazing."
$5,537,59$,431.67
.
...
This amount, together with future
premiums and
f
i
few
of it is
Street and Number.
Thursday, March 16, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1106
Investment Go's
Stocks lost Widely Held By
(Continued from page 1102)
Allied Chemical & Dye Corporation
] (>
the bonds of solvent
vored among
ness
Net income for the year was
The results of the
The
which
Company received from operations---.
disposed of as follows:
*.
following short form:
.—•—:--r
—
—..
,
r»
1
and
purchased from others
services
f
—
-
>J.
X
/ J
.
AM
>.
Replacement of worn-out tools (depreciation
Wages and salaries paid to labor———
.
_
—
Wage payment for tools
.
n »%
jJI
1 rt ^ I
«*1 r*
\
M
$285,323,374
.
54
Montgomery
52
General
Ward....
Motors......
230,984
277,276
2.5
44
Texas
Company
.....
Receipts
(stockholders).
Thus the customer is the employer of both
statements for the year include the accounts of
owners
The consolidated
previously carried as investments, all of which are now wholly
erty account during the year for plant construction amounted
ments aggregated $6,519,791.
the
business for
Total
year
was
Union
Continental
38
Gulf
37
Deere
36
Commercial
Pure
33
33
Phillips
32
Commonwealth
31
unchanged. By reason
higher costs of manufacture Occasioned by increased wage rates paid to labor and higher
prices paid for goods and services purchased from others, the amount remaining as compensa¬
tion to" the stockholders for the use of the assets decreased 7%.
The Company continued the
payment of regular dividends of $6.00 per share. Because of the extraordinary uncertainties
confronting all industry in connection with the war and its termination, $4,000,000 was pro¬
vided out of 1943 income as an addition to the general contingency reserve.
Emphasis on research relating both to the war program and the post-war period has been
continued.
During the year the Company supplied its own products in large volume for war
purposes and continued to operate, a number of plants constructed by it for the Government's
account. Additional operating divisions of the Company have received the Army-Navy "E" for
excellence in performance and several have received the award a second time.
Under existing
legislation Government contracts during 1942 and 1943 may be subject to renegotiation, the
effect of which, if any, on the Company's income for those years cannot now be determined.
The accomplishment of American industry in providing the materials necessary for the
prosecution of the war has been without parallel.
The contribution to this achievement by
the chemical industry has been of the utmost importance.
The Company will do its full share in
of
Paramount
31
Accounts Payable
Plants, Equipment, Mines,
at cost—
-$274,788,608.36
U.
Cash——
—$58,880,161.92
;
cost—;
-
Notes
ceivable—less
Reserves
oust
at 1
21,375,600.43
Stork,
——
Pacific
York, Chicago and St. Louis, A'/as 1978, 5'/2s
Telephone & Telegraph, 3s 1956
1974
14
New
Cities Service Co.,: 5s 1950 and 1958————
International Telephone & Telegraph, 5s 1955
—
Standard
Baltimore
Associated
11
Southern
10
Interstate
10
New
10
Erie RR.,
$14,115,000
3,691,000
10,162,000
4,059,000
4,243,000
2,536,000
4,097,000
2,799,000
American
Gas
Electric,
and
Gas & Electric
(various
Railway
Co.,
Power
System
5s
-
.
—
(various issues)
issues)—
1957 and
1952,
England Gas and Electric, 5s 1947,
—-
—
—
2,132,000
1965————
1,749,000
1948 and 1950
income 4J/2S 2015
.—
1980 and 5s. 1956:
4y2s
2,425,000
1,221,000
1,643,000
2,371,000
4,192,000
12,464,160
2,275,000
—
issues)-
(various
6s
-
(various issues)
Ohio
&
9
Pere Marquette
1,859,625
-——2,338,000
—
-
Alleghany Corp., collateral trust 5s 1949 and 1950
—
2,269,000
analysis of the portfolios of 90 funds which are members of the
National Association of Investment Companies.
Practically all companies of sub¬
stantial size are included.
upon
an
Issued
Combined
Trade
Deduct
Marks,
rw.
;■
$5.
Total
ENDED
YEAR
:
23,712,000
4.4
6,763,000
12,903,000
2.4
~-8^%4,000
32,621,000
12,412,000
6.1
18,679,000
3.7
2.3
5,^11,000
1.1
Interest
—
—
Other
101,037,235.00
99,357,013.77
Gross Income before provision for Federal
Excess
Profits
Treasury
Stock-
13.G
52,167,000
$486,564,401.24
since Its organization and $21,621,845
39,978,000
33,520,000
6.2
41,883,000
8.2
Building, household equipment
20,410,000
3.8
22,261,000
20,293,000
3.8
—
12,586,000
mining——
19,252,000
3.6
44,426,000
19,215,000
3.6
37,934.000
7.5
18,825,000
,3.5
11,409,000
.H- 2.2
18,591,000
3.4
5,942,000
1.1
16,851,000
3.1
22,046,000
4.3
14,834,000
2.7
19,060,000
3.7
equipment
14,383,000
2.7
17,111,000
10,546,000
1.9
1,682,000
.3
tires
8,538,000
1,6
18,478,000
3.6
Metals
and
■
—
~
beverages—
and
Foods
Motion
All
$40,325,433.14
other
$2,705,870.08
426,720.03
Income and Excess
^Profits Taxes——--——
—-
—
—
19,023,679.56
....
....
.
——
:
—_____
Amount of Federal Income and Excess Profits Taxes Is after
$19,023,679.56
credit of $259,705 due
N. Y.
-
1944
the
1.5
16,819,000
3.3
15.3
70,106,000
13.3
the Thirteen Weeks
31,1942
ot Work Performed During
(The 1943 costs are
December 31,1943 and December
preliminary and subject to final audit
and adjustment)
to reduction of lnter-company
WEST, FLINT & CO.
December
December
31, 1943
31, 1942
Ship Construction
$43,019,000
$51,690,000
$ 144,660,000
$ 140,331,000
1,708,000
1,800,000
3,984,000
18,721,000
2,259,000
2,049,000
6,191,000
4,322,000
Conversions
of
r.'fi,i:v
December
in¬
New
sheet
•\ '
December
Ship Repairs and
general balance
Year Ended
Thirteen Weeks Ended
$200,394,248.77
i
consolidated
3.4
_
the Allied Chemical & Dye Corporation and its
subsidiary companies as of December 31, 1943, and the statements of consolidated income and surplus for the calen¬
dar year then ended,
have reviewed the system of internal control and the accciunting procedures of the company
and its subsidiary companies and,
without making a detailed audit of the transactions, have examined or tested
accounting records of the companies and other supporting evidence, by methods and to the extent we deemed appro¬
priate.
Our examination was made in accordance with generally accepted auditing standards applicable in the cir¬
cumstances and included all procedures which we considered necessary.
; ■ : . „
In our opinion, the accompanying consolidated general balance sheet and related statements of income and surplus
present fairly the position of the Allied Chemical & Dye Cirporation and its subsidiary companies at December 31,
1943, and the results of their operations for the calendar year, in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceding year.
examined
•
8,037,000
1,123,134.00 -13,284,594.00
——.—
8.7
81,868,000
_
——
Statement of Cost
$213,678,842.77-
Dye Corporation,
York,
equipment
-
2.5
Newport News
Shipbuilding and Dry Dock Company
^32^590.11
$39,458,023.25
20,434,343.69
after post-war credit of $603,195.
Allied Chemical &
:
$14,407,728.00
:
Treasury Stock, not included in Income
1943
iron
and the Years Ended
—^—$194,655,163.21
—
...
....
—
—
4.4
;
$36,325,433.14
SURPLUS ACCOUNT
1942
-
-
trucks ———
Railroads
Farm
radio
picture,
Automobiles,
Electrical
1943
-
7.9
_L
refining
utilities
Rubber,
——————
-
'
10.3
6.7
and
Public
25,837,300.48
—
—
73,129,000
36,100,000
Oil
$212,400,688.77
Taxes-
Common Stock
1.3
—
Retail merchandising
for depreciation,
stock taxes—
Net Income
Surplus at December 31,
;■
7.4
.
Stocks
Common
and
——.—131-
£
on
37,804,000
Preferred Stocks
4,000,000.00
—
—
Dividends
100%
Railroad
■
Bonds
Other Income:'
on
Hojding
$508,352,000
7.8
Utility
$12,006,440.00
——
all state, local aad capital
repairs and renewals,
for General Contingencies
1943-.
Market Value
42,111,000
Cther
"•
v
2,401,288
Surplus
DECEMBER 31,
(othe^ than dividends and interest) after provision
year
100%
$538,152,000
—
.
21,305,942.61
obsolescence,
Dividends declared
.A
Holding
iqaq
<;< of Total
Holding
Market Value
a.-
_
equivalent.-....-
and
Cash
CONSOLIDATED INCOME ACCOUNT
Surplus at December 31,
*11
......
assets
Total
market value at December 31,
and
BY INDUSTRIES
ASSETS
12 Large Funds
Market Value
Holding
% of Total
186,563,388.29
$486,564,401.24
Income
Holdings of
Market Value
Bank and finance
Further
2,332,778.26
etc.———
————
-
COMPANY
INVESTMENT
OF
*
Steel and
6,
—
—
11
per Share
27,028,665.53
surplus accrued to the Company
accrued to its subsidiary companies prior to the Company's organization.
March
!
5s (various maturities)
(mainly 4(£s)_———'!
Co.
12
without.
basis
value,
par
Surplus consists of $77,735,169 earned
have
Total Par
Value Held
:
12
Treasury Savings Notes with principal value of $18,900,000; other U. S. Government
1943 of $17,593,796.
Marketable Securities consisting of 150,500 shares
of common stock of the United States Steel Corporation and 270,000 shares of capital stock of the Air Reduction Com¬
pany, Inc., listed on the New York Stock Exchange, had a market value at December 31, 1943 of $18,408,000.
Treasury
Stock consists of 187,189 shares of common stock carried at cost.
Post-war U. S. and Canadian tax credits totaling
$1,343,434 are included in Sundry Investments.
We
Included.
BY INVESTMENT COMPANIES
Chicago,
40,000,000.00
21,319,385.18
Contingencies—
Comiflnn
——— ■■■
-
New
Practically
are
1943
11
895,132.35
-
Surplus
etc.
debtedness and
of substantial size
Milwaukee and St. Paul ((various issues)
;
American and Foreign Power, deb. 5s 2030—
;
Northern Pacific (various issues due 2047)i-u———
Associated Electric, 4 Va.s 1953 and 5s 1961-:——
New York Central (various issues)
*
,
:
U. S. Government Securities include
Less:
companies
25,692,019.30
Capital Surplus
Processes,
Income
31,
"Dec.
Chemicals
Net
all
9
CAPITAL STOCK AND SURPLUS
OTHER ASSETS
Federal
which
funds
Association of Investment Companies.
Southern
16
1,043,951.63
Total Capital Stock
Dividends
1.4
14
2,422,026.55
is
Insurance,
Taxes,
Provision
90
9.0
12.2
,
15
263,650,301.21
CHARGES
Gross Income
133,100
121,160
DISTRIBUTION
Shares
Further
.8
analysis of the portfolios of
are members of the National
an
upon
Name of Issuer
16
2,025,404.25
158,863,734.65
a
81,600
..........
'
m
whichever
had
"Based
-
"Based
—
7.1
4.6
Missouri Pacific Railroad,
;r
Sundry
Re¬
——————
securities
Woolworth
84,900
150,600
22
-
3.8
45,000
.>
Foundries
18
y
Insurance
"'
Total
Auto Lite'.,
Steel
Pullman
17
$8,719,608.46
Advances
General
36,302,794.27
15,276,512.50
Goodwill,
Amer.
22
13
—
ties
at
Securities
cost
Patents,
3.7
'y
1.3
2.1
357,283
Depreciation, Obsolescence, etc.
$197,883,485.23
Investments and Securi¬
U. S. Government Securi¬
Prepaid
10.5 i
& Light
Power
Electric
; r'23
&
pfd.......
•
•
RESERVES
CURRENT ASSETS
DEFERRED
■"
7.3
96,300
79,000
65,825
Auto
$36,350,711.74
29,273,337.36
Sundry Investments at cost or less
lower
23
.
1.6
149,800
165,430
103,550
Supply
&
24
Government. Con¬
Wages Accrued
Taxes Accrued
INVESTMENTS
market
S.
tract
—
inventories
3.6
4.1
.
Amer.
2.7
^
Ohio..
York
$5 & $6 pfd
Funds
CURRENT LIABILITIES
ACCOUNT
and
/24
2.5
'
LIABILITIES
Real Estate,
Accounts
9.0
Petroleum...
Holding
H. F. ATHERTON, President
ASSETS
at
Western
CORPORATE BONDS MOST WIDELY HELD
20
.....
SHEET—DECEMBER 31, 1943
CONSOLIDATED GENERAL BALANCE
ties
24
6.3
8.8
of
12
Dated, March 7, 1944.
Marketable
2.1
New
270,820
53,450
No. of
Respectfully submitted,
etc.,
National City Bank
Chesapeake
173,350
Steel
S.
U.
24
24
Copper....
.
2.3
61,950
171,333
......
American Airways
8.8
............
Southern
task which still lies ahead.
PROPERTY
t
Manville
Johns
Pan
3.7
363,400
Goodyear
33
products, ceilings for
Kennecott
4.1
Aircraft
United
25
147,200
Radiator...
American
Ohio
l.iv;
&
24
358,930
33
Oil
25
1.3
2,4
Electric
Roebuck
Sears,
Topeka
65,405
■-.<.
33
plants were operated at capacity.
Selling prices for the Company's
which were established by Government regulations, were substantially
the great
Oil
Atchison,
131,740
.......
Westinghcuse
34
34
25
8.2 t
100,200
Greyhound
Invest¬
Trust
l.i
136,100
Edison
Commonwealth
25
264,075
Co.....
&
5.41 fc
7.1 y.
67,403
229,300
26
4.3
226,030
36
Principal
123,550
....
Oil a.,
ment
owned. Additions to the prop¬
to $8,175,084 and gross retire¬
U.
Pacific Gas & Electric
8.5
381,100
201,930
Carbide
Oil
134,600
Rubber..
S.
3.2
.v
125,500
pfd..
Santa Fe
tric
the labor and the tools.
three affiliated companies
the largest in the history of the Company.
2.5
»
American
.
..
Northern
27
American Gas & Elec¬
38
the replacement of wornthe tools (assets) to the
Great
1.0
Dairy Proud-
27
i
.8
Socony-Vacuum
40
from its customers. These receipts
Receipts from operations by a corporation come solely
provide the means for the payment of labor, the purchase of materials,
out tools, the payment of taxes and the wage payment for the use of
National
ucts
15.9
790,280
North
42
$288,455,964
—-—.———l-
—•—
.
General
223,030
1,361,180
Electric
44
42
41
Total
137,400
In¬
Railroad
Pennsylvania
1.0
202,890
of
,
.6
148,965
Oil
27
2.2
International
3,132,590
62,430
27
4.2
317,100
Chrysler
46
i„_——
10.0
............
28
.5
182,825
Nickel..
48
26,828,541
15,891,089
operating receipts
(assets) used by labor to produce
dividend receipts—-—-—-.————
and
Interest
1.2%
328,325 '6.3
331,446
J.
Standard Oil of N.
60,182,085
——
Standard
1.7
130,250
duPont
diana
53
19,731,876
rvAM Ma A A
.
Goodrich
28
Stock
£•••% ;• #
217,584
30
stand' g
Held
2.4
102.225
.
Oil of Cali-
fornia
30
Shares
Funds
Harves-
ter
Out-
No. of
.
Holding
$162,689,783
1 0 "7 O 1 O "7 £?
—
4*
/>
and depletion) and contingencies
Standard
:
No. of
year's operations are set forth in the
stand'g
Stock
Held
International
% Of
$19,023,679.
% of
Out-
Shares
,
31
BY
1943"
December 31,
was
Goods
\
the close of busi¬
$
'
'
30
MOST WIDELY HELD
INVESTMENT COMPANIES
50 STOCKS
presented the consolidated balance sheet of the Company at
December 31, 1943, and the consolidated income account for the year.
are
J
/
.
■
Holding
To the Stockholders:
Herewith
,
No. of
No. Of
Funds
railroads.
>
Hydraulic Turbines and
Accessories and Other
Work
Totals
i
$46,986,000
■
$55,539,000
'31, 1943
a
By Order of The
,
$154,835,000
31, 1942
$163,374,000 .;
Board of Directors
R.I.FLETCHER
March 10, 1944
Comptroller
Volume 159
Number
M
"■
4264
THE COMMERCIAL & FINANCIAL CHRONICLE
NeviI Ford Succeeds
Investment Dealers Here's An
to increase
An
business—secure
your
Opportunity...
9
dealer in
one
a
with
state—write
understanding
he
June.
assumed
In
addition
York, and that he has appointed Nevil
BROADWAY, NEW YORK 4, N. Y.
to
his
Bankers
Association.
Secretary Morgenthau's
Early last Spring a dealer in a medium sized city in the Middle
West was faced with the dual problem of losing several of his sales¬
men and having to cover his clientele with reduced gasoline rations.
As was the case with many dealers he had nearly always contacted
his customers at their places of business or at their homes.
Rarely
did he have
accept
the
Finance
Committee.
or
the
as
of
which
He
Third
"The
Chairmanship,
Loans
sitions
on
leave of ab¬
he
is
sales
has
oc¬
ship of Mr. Burgess
po¬
and Mr. Ford
Executive
War
through
or
in
Officer
In
ager.
as
these
as
made
and
War
Loan,
again greatly
were
sales
made
were
better than
one
buyer for
inhabitants
The
than
the
of
organization
more
buyers,
has
every
StaUe.-
included
500,000
volunteer
workers."
Loans, New
visit from them at his office.
a
Faced with the necessity of covering
his territory under severe
handicaps almost beyond his ability, he decided that there was only
one way to overcome the
difficulty, which was to DEVISE SOME
METHOD THAT WOULD BRING CLIENTS IN TO SEE HIM.
His first step was to procure a larger
building
office located in the same
before*
He added some new furniture, put in several
comfortable upholstered chairs, bought a box of good cigars and
placed them in a handy drawer of his desk, and saw to it that a
*
I
A
N
N
C
I
A
t
C
O
D
N
T
I
N
O
I
O
F
as
THE
/ETNA
LIFE
AFFILIATED
COMPANIES
'
of flowers and
the
on
distaff
an
1
attractive lamp gave a homelike
and pleasant
effect to the office, for the special benefit of his clients who were
vase
,
Hattford, Connecticut.
*
'I
x
December 31, 1943
,1
V '
yf'
*
!
y
~
simple—how to get them to come in.
of the problem showed: (a) that his territory covered
approximately the surrounding communities within a 35-mile radius
study
of
his
office; (b) there were two categories of potential business
to him—his clients ,and those with whom he did not have an
open
established contact;
transact
to
use
there
(c)
business—the
were three methods which he could
telephone, mail and by personal con¬
The annual statements of the /Etna Life Insurance Company and its three affiliates,
the JEtna Casualty and Surety Company, the Automobile Insurance
Company and
the Standard Eire Insurance Company, here presented in condensed
sultation at his office.
his
To
personal clients he addressed a mail campaign.
He
pointed out that due to the war-effort he was forced to continue his
contact with them on the basis of more letters and correspondence
and fewer calls by his representatives.
But he stressed the fact
that
he
desired to keep them
even
more
completely informed
REGARDING
THE
STATUS
OF
THEIR
INVESTMENTS
form,
lasting and dependable security
THAN
EVER BEFORE.
He brought but that the war itself, and the uncer¬
tainties of business and finance under present-day conditions, made
it
imperative that his clients
more
even
in to his office whenever
HELPING
TAIN
HIS
CLIENTS
INCOME.
V
they
He invited
in the neighbor¬
hood.
He stressed SERVICE and his desire to be helpful—he lowpressured SELLING new investments i and placed emphasis upon
come
were
PRINCIPAL
PRESERVE
.^CONDENSED STATEMENTS^
MAIN¬
AND
(As filed with the State of New York)
rv';
Next he went to his local newspaper.
rates
on
He procured advertising
campaign designed to bring in leads and hew accounts.
a fund to this purpose and started a consistent effort
a
94th Annual Statement of The y€tna Life Insurance
Company
He allocated
in this direction:
in
His ads
non-technical
PEOPLE WERE
securities
Capital
werFinfofmative—readable—interesting—
language—and
INTERESTED.
covered
The
subjects
WHICH
up on the
savings-how a
IN
value of checking
ASSETS
selected
held—increasing
equities—and
in which he
These
was
ads
an
occasional
ad
on
special
some
were
inserted
invited.
Leads
Surplus
Securities carried at $ J 5,983,009.86 in above, statement
LIABILITIES
course.
as
required by law.
$3,000,000.00
Surplus
(
to
$25,098,436.06
$71,963,538.94
policyholders
*
$28,098,436.06
This dealer used
Securities carried at tl,091,701.91 in above statement
Several weeks
followed
he
and
had
a
as
required by law
Company
Capital
ASSETS
LIABILITIES
$36,453,860.53
$5,000,000.00
$20,742,990.26
workmanlike
job completed on the prospect's holdings. He called again—he sug¬
gested they come in to the office and go over things together. By
this time the prospect was beginning to say to himself—this fellow
is all right—I think I'LL go in and see what he has to say.
When the prospect called—he was made to feel at home—he
was
taken behind the scenes of how and why HE NEEDED THE
ASSISTANCE OF THIS DEALER.
A selling job was done, NOT
deposited with public authorities
are
31st Annual Statement of The Automobile Insurance
be
interest.
$49,479,030.30
deposited with public authorities
Surplus
$100,061,975.00
come in to the office.
He made it clear that they
obligated—HE DISARMED COMPLETELY—by his
friendliness, his courtesy, his sincere willingness to serve them and
his personality.
He followed up these leads by letter.
He wrote
and asked questions about the lists, or specific holdings, he showed
an
policyholders
Capital
ASSETS
invited them to
not
to
37th Annual Statement of The /€tna Casualty and Surety Company
Then the proper approach followed
the telephone.
He told the
prospect he appreciated their inquiry.
If it was a list of holdings
which they sent in for analysis, he informed them that he was
making a thorough check and they . would hear from him.
He
would
are
began to come in.
natural
a
34,479,030.30
,
interested."
every week.
Always in the same
A similar layout and typographical style
was
used for each ad; thereby familiarizing the public with his
messages.
Every ad suggested that telephone and letter inquiries
in
$15,000,000.00
Surplus
$890,893,811.67
situation
section of the newspaper.
were
LIABILITIES
$940,372,841.97
income from
soundly .conceived investment program can help in building a "per¬
sonal post-war plan—building principal through the purchase of
already
assure
every
kept informed RE¬
were
GARDING THE SECURITIES WHICH THEY OWNED.
them to
each and
■i
policyholder* Throughout these
years, in peace and in war, in depressions and in prosperity, this all-protecting insur•
ance institution has
staunchly upheld its reputation for prompt and fair claim set"
tlements in all of the great fields of insurance—Life, Casualty, Fire and Marine.
to
Surplus
Surplus
Securities carried at $601,1 S6.70 in above
10,710 870.27
.
"
statement
are
to
policyholders
'
$15,710,870.27
deposited with public authorities
as
required by law
__
TO SELL A SECURITY BUT TO SELL THIS DEALER'S
AND
THE
WHY
INVESTOR
NEEDED
SOMEONE
SERVICE,
HE
COULD
RELY UPON TO HELP HIM BUILD AN INVESTMENT PROGRAM.
/
34th Annual Statement of The Standard Fire Insurance
Capital
ASSETS
Securities carried
at
$249,1S4.14in above statement
Total premium income—all
Will Be Reynolds Partner
C.
Of Phoenix Silk Mills
annual
the
meeting of the Phoenix Silk Mills
Pa., held on Mar. 8,
1944, at Allentown, Pa., Harry
Schneider,
an
attorney of 285
was
Ave.,
elected
pany.
a
New
York
director of the
,
.
Frank
become
stockholders'
of Allentown,
Madison
2 272 221 50
2,272,221.50
are
to
policyholders
deposited with public authorities
,
as
$3,272,221.50
required by law
again—in fact, he likes it this way!
Schneider A Director
At
Company
$1,000,000.00
Surplus
$4,032,711.39
Surplus
Today, this dealer's office is busy and customers telephone,
him and call in person—the gasoline shortage will never
write to
bother him
LIABILITIES
57,304,932.89
City,
com¬
a
Fackrell will
shortly
partner in Reynolds &
Co., 120 Broadway, New York
City, members of the New York
Paid to
or
com panics—1943
$224 410 228.28
for policyholders since organization
Life insurance in force December
Increase in
2,278,111,551.81
3 /, 1945
5,867,882,586.00
life insurance in force during 1943
637,354,952.00
Stock
Exchange and other lead¬
ing exchanges. Mr. Fackrell will
act
as
New
alternate
York
on
Stock
Joseph H. Brown.
the floor of the
Exchange
for
The /Etna
Life Affiliated Companies write practically
every
I
Morgan B. Brainard, President
side.
The next step was not so
A
to
compared
as
estimated 5,300,000
an
Chairman
Executive Man¬
War
re¬
in the Second War
figures
three
New York State under the leader¬
corresponding
a
as
were
Fourth
the
exceeded
to
Fourth
and
carried
were
a
in¬
Vice-
President and Director.
Mr. Ford retires from the position
of Executive Manager of the War
cupied this
He is
on
to
sales
and
investors
In
Loan.
from the First Boston Cor¬
sence
poration,
announce¬
ment added:
Attracting Prospective Clients To Call At Your Office
that
mated
3,700,000
these
the
of
of
investors,
York State.
now
"To
dividual
with 2,600,000
Vice-Chairman of .the
by
sult, in the Third drive, it is esti¬
last' of the organization since October
respon¬
quota
placed
was
distribution
City Bank, Mr. Burgess
American
The Securities Salesman's Corner
emphasis
wide
the to-
at
office
of
11% in the Fourth. In both drives,
the
1941, shortly after the Defense
Savings Staff was organized for
the sale of savings bonds in Nefa
as
National
is
the
its
exceeded
Vice-President
sibilities
WILLIAM S. BAREN
42
the
time
20%
about
18% in the Third War Loan, and
Burgess.
Mr. Burgess, said the announcement,
will continue to serve the Committee as Chairman of the Executive
Committee. His retirement from the Chairmanship is in accordance
today for full details.
and
try,
of the Treasury Morgenthau announced on March
Randolph Burgess has retired as Chairman of the War
W.
made
State
the total sales of the entire coun¬
Ford to succeed Mr.
COPY—human, attention arresting, covers general field
investment—filling a long required need of the retail
IS LOW—exclusive to
that
Finance Committee for New
investment dealer.
CbST
York
Randolph Burgess As
Secretary
advertising campaign, for use in your daily papers
tested, proven successful.
is available—it's been
of
1107
.
Chairman Of War Finance Committee For N.Y.
leads—new accounts
new
■
form of insurance and bonding protection
{
Thursday, March 16, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1108
A - competitive
business
profit limitation. On top,
the rule, as 1 have pointed put in
my previous article, is no profit
limitation; it is. a highly discrim¬
inatory tax on gross income.
Surely Congress did not pass
as bank loans.
This phenomenon for the existence of the smaller the Maloney Act to drive men out
(Continued from page 1091)
securities houses and dealers to
of
business in the exercise of
thfc need of small business for seems to have been attributable
meet the capital needs of smaller
which they have given societj
long-term credit and particularly partly to a lack of savings funds
business
establishments.
He
available for the purchase of in¬
good and faithful service.
Un¬
for
capital on more favorable
states, (pp. 159-60);
fortunately, most U. S. citizens
terms ■■ than
have hitherto been dustrial issues and partly to the
"Medium and small scale busi¬
belief that bank loans represented
have no conception of the social
available. As part of our national
ness enterprises constitute a very
a flexible form of financing wnich
contribution of the smaller securi¬
financial system, certain organiza¬
could be readily expanded or con¬ important segment of American ties
underwriters,
dealers, and
tions now offer long-term capi¬
tracted in the face of varying economic life, particularly from salesmen. In order to make a sale
tal loans. The cost of such loans
business requirements; But busi¬ the point of view of employment. all these are requisites: scores of
to newer and smaller enterprises
ness
had tremendous difficulties The principal source of financial interviews; free investment ad¬
in many instances is so high that
in connection
with these bank weaknesses of small-scale busi¬ vice; collection of coupons; ship¬
sound
management
cannot
or
ness
enterprises is a shortage of ments of bonds for
loans in the 1920-1921 crisis and
payments
should not avail itself of such
working capital. It is evident that,
was very rudely awakened to tne
keeping records of the changing
credit. In the past, a new, small
typically speaking, they have not affairs of
corporations in whicf
enterprise could most,soundly ex¬ necessity of procuring corporate been able to build
up capital out
clients hold securities;
personal
pand by reinvesting profits. Be¬ capital thrbugh the, sale of secur¬ of undistributed
earnings.
The visits to brokers, underwriters
ities
in the investment market
cause of high tax rates, however,
primary need, therefore, is for and
rather than from bank loans.
corporation officials; and sub¬
that avenue to growth and strength
an
expansion of equity capital
Higher prices will necessitate
scription to statistical services.
of small business is being closed
through the sale of stock.
Loans
more capital being tied up in in¬
off.
The entire issue has such farto small-scale business enterprises
It is quite doubtful
The Government made its first ventories.
reaching consequences for the na¬
whether an increase in the effi¬ by banks and Government agen¬
tional economy as a whole that ?
attempt to meet the requirements
cies do not reach to the heart of
of long-term credit for smaller ciency of transportation can offset
Congressional investigation is nol
the problem." (Italics mine.)
that need. The country may see
concerns
through the enactment
advisable but mandatory
Ex-servicemen and others will only
an
increasingly attractive field
of the Industrial Advances Act of
There are too many questions in¬
need and want jobs in the post¬
opened up in certain types of agri¬
volved which only a body ap-;
July 19, 1934, which amended the
war period. If our free-enterprise
Federal Reserve Act by the addi¬ cultural pursuits in which as a
proaching the problem from an
system'cannot provide them, some
tion ; of section < 13b and added result of technological develop¬
over-all point of view can prop¬
corporations might other system will. Any one who
section 5d to the Reconstruction ments small
has any doubt need only take a erly evaluate and judge.
Finance Corporation Act. The De¬ find attractive possibilities. There
ipok at, a very readable book "*"(1) What has been the intern
fense Plant Corporation, a sub¬ is the likelihood in many lines of
published this week by the form¬ of Congress under the Maloney
sidiary of the RFC, as well as the production for increasing decen¬
Act and to what extent has this
er chairman of the WPB's post¬
Smaller War Plants Corporation tralization. Power can be taken to
war
planning committee, Robert intent been violated?
have made financial advances in the source of labor rather than
(2) Is the Board of Governors
the reverse being true.
Subcon¬ Nathan ("Mobilizing for Abun¬
one form or other to smaller busi¬
representativetracting has given smaller busi¬ dance,''McGraw-Hili, $2.00). The of the NASD a
ness to finance plant construction,
an
interesting
experience smaller concerns particularly can¬ body of the security business inn
conversion or expansion, or |o ness
not provide
employment oppor¬ terests?
which might well be put to use
purchase equipment, machinery or
tunities unless they are able to
fostering more decentralization,
(3) Are the rule-making powd¬
supplies.
in the light indus¬ replenish their capital by being ers of the NASD employed in fT
But meeting the long-term ac¬ particularly
Better
roads
and
other permitted access to the capital democratic
and
constitutional
commodation
needs
of smaller tries.
market. To do this smaller con¬
manner?
businesses with equipment leases transportatoin improvements will
cerns need the smaller underwrit¬
and
contractual loans does not intensify these trends. Insistence
(4) Is there a deliberate at¬
ing houses which in turn need the
solve
the
problem.
Long-term upon equity financing will also
tempt to eliminate the smaller
small dealers. Large underwriting
credit is inseparably interwoven place the national economy in a
dealers?
houses
are
not interested
in a
with the amount of equity capital much more flexible and hence
(5) Is the security business a
Often even
favorable position in successfully $250,000 stock issue.
employed in the business of the
If so, are
issues of $1,000,000 and above do competitive business?
prospective borrowers. The amount weathering any future business not interest them if of specula¬ legal profit limitations necessary
of money invested as equity capi¬ recessions.
or advisable?
Federal
investments in
Ohio tive quality. To quote from "In¬
tal, sometimes referred to as the
vestments" by Professors Dowrie
(6) Just what should be the
fiet worth of a business or as risk industrial facilities are estimated
to be $835,000,000.
Illinois ranks and Fuller (1941): "Since so many functions of the NASD?
capital, has a definite relation to
thousands of issues, for one rea¬
other factors of the business en¬ second, after Ohio, with $665,000,000. Michigan, $645,000,000. Penn¬ son or another, do not lend them¬
terprise. In each group or segment
selves readily to listing on an or¬
of industry, these relations vary sylvania is fourth in rank with
Texas,
fifth with ganized exchange, it is obvious
of course. Ratios of equity capital $580,000,000;
(Continued from page 1099)
over-the-counter
dealers
The seven states of that
to working capital, to inventory; $570 000.000.
render an invaluable service in plants, combined to reduce earn¬
to current assets, to fixed .assets,, the Great Lakes Industrial Region
ings of Missouri Portland Cement
to current liabilities, to funded have received a Federal invest¬ providing a market."
to $213,272 or 75£ per share in the
But now the 5% profit limita¬
totaling $3,650,000,000
in
debt, to net sales, are well estab- j ment
year ended Dec. 31, 1943. Balance
manufacturing facilities; another tion rule of the National Associa¬ sheet disclosed cash and Govern¬
lished for practically every class
/
•
'
X:-
NASD 5% Piofit Rule Thieatens Access Of
Small Easiness To Capital Markets
tinue,
needs
no
Is Formed In
they are stark realities.
management heeds these
myths;
Sound
Plant
Corporation are of a type
production of
that will allow t&e
items
civilian use.
of general
It
phase which makes the
ownership and operation of these
Federal
commitments
of
such
is
this
Unsound
management
them by, claiming that it
can
violate generally
accepted paramount importance.
It is generally agreed that the
criteria by virtue of ingenuity and
resourcefulness or claiming that Government-financed plants rep¬
signals.
passes
Don G. Niehls, Leo H. Ostrander, and Daniel J. Ritter. Of¬
er,
fices
house:
that
evident that the 5% rule ends all
which will need capital to bail out
second-grade or speculative orig¬
inations that common sense should
Government
be
are
ness
the
concerns
and to
investors in
equity position of small
cerns
as
program.
of Commerce
things
in
has
view:
evidently two
(a) Tax credits
the amount of profits not with¬
drawn from a
business by the
on
owners
investments.
The
of
part of the national tax capital
expansion requires the
The U. S. Department raising of funds from stock flota¬
con¬
of
(b) credits
smaller
on
concerns;
and
taxable incomes of
equity capital investors in smaller
To
tions
But
summarize:
process
well
as
from bond issues.
because
of
greater risks in¬
as
volved; stock flotations must be
looked
to for most of the
capital
the development of
new enterprises.
In the very near
future the need for equity financ¬
required
in
concerns.
ing will be particularly great be¬
equity capital cause of the lack of working capi¬
needs of small business is, if any¬ tal in mediumsized and smaller
thing, not overemphasized.
Let corporations, as well as because
no
one
forget the experience in of postwar requirements for ex¬
"World War I. Prior to and during pansion.
that war a very large amount of
Dr. H. G. MouUon. in his schol¬
The emphasis on
industrial
nanced
credit,
on
expansion had been fi¬
by extensions of bank
the obligations appearing
the corporation balance sheets
"The whole situation is so
injected by the SEC
rule."
quickly
to terminate the 5 %
In
the issue of February 24, I
have set forth 10
points illustrat¬
ing ' the threat to post-war em¬
ployment
opportunities in the
smaller concerns as a result of the
5% rule.
to
It
smaller
intention here
pressing need of
was my
the
stress
businessvJestablishjnents
need which cannot,
be filled unless the capital market
for smaller issues is kept intact.
No
matter what interpretations
for
may
funds,
a
be placed by the NASD upon
of
the construction of the wording
the 5% rule as a trading
practice,
long as the profit limitation
rule exists, capital markets are
as
on "Capital Expansion,
Employment, and Economic Sta¬ prevented from discharging the
bility'' (The Brookings Institu¬ functions they must perform if our
tion, 1941) emphasizes the need free-enterprise system is to con¬
arly work
business
in
continue
as
Blair
William
Corporation, and
expects to confine its activities to
the supervision of investment ac¬
counts. Mr. Blair will be president
and Messrs. Robert J. Kiep and
P. S. Dickinson will be vice-presi¬
dents.
The
well
of
name
in
known
has
been
business
when William
1842
since
circles
Blair
Chicago
Blair, grandfather- to the present)
Mr. Blair, Opened the first hard¬
ware, business in that city.
He
became
later
of
director
a
the
Merchants^ National Bank; knbwrtf
afc,' ''The1
Blair Bank," of which his
Chauncey B. Blair was
president. As a result of several
mergers,- this bank is now part of
the vpresent ■ Continental Illinois
National' Bank, and Trust Combrother,
pany;
The present Mr. Blair; who has
president of Blair, Bonner &
Co.,: is also a director of Conti¬
nental Casualty and Continental
Assurance companies and of Interlake Iron Corporation. He is a
trustee of the University of Chi¬
.
been
cago and
Mr.
other institutions.
Flower,
who
has
been
a
vice-president of the predecessor
company,
has for the last two
years been on leave of absence in
Washington, as director of the
Agency Coordination Division of
the Smaller War Plants
Chairman of the
Corpora¬
the
of
office
the
in
and
tion;
War Production
He will take up his new
Board.
duties
as
a
firm
partner in the
about the middle of this month.
Mr. Qstrander comes
to William
Blair & Co. from Graham,
Parsons
of
& Co., where he was manager
the
Chicago
ments after all liabilities equal to
common
penses.
rate differentials to small busU
will
Co.
■
business
them
LaSalle
South
135
at
are
Street, Chicago, Blair, Bonner &
'
flow of equity capital into smaller
or
Co., includes William Mc-
Cormick Blair, Wallace M. Flow¬
has
continued
its
ac¬
investors
will
commit
particular business is different resent in many cases low-cost pective
tivity oh the St. Louis Stock
other one. Too often, nroduction equipment. Thus these their funds unless ready market¬
Exchange, establishing another
otherwise promising small enter¬ facilities may become of high value ability
is assured) their profit
new high.
prises have failed because of re¬ to interested parties in that this limited to 5% as stipulated in the
Difficulties experienced by its
liance on short-term loans rather more efficient capital would aid NASD
rule,
neither the small
than
on
permanently
invested in maintaining a - better- profit dealers nor the salesmen can sur¬ subsidiary, Clinton Company, in
margin in a period when produc¬ vive in that type of security busi¬ securing corn, ceiling prices on
capital.
The Government has proposed tion costs are high, along with ness under such conditions.
To finished products unchanged de¬
a number of steps to facilitate the
taxes and other operating
ex¬
quote one smaller underwriting spite higher raw material costs,
Many underwriters feel
there is a large number of
smaller
business
establishments
&
ner
its
Among
the granting of credits
&
changes.
The firm, successor to
the underwriting and general in¬
vestment business of Blair, Bon¬
from every
establishments.
Blair
office.
Mr. Miehls
joined Blair; Bonner & Co. in 1938
$6.79 per share of common; net as
manager of its municipal de¬
current assets after all liabilities
partment, while Mr. Ritter has
equal to $9.13 per share; and book been with that organization since
SEC profit allowances on new sec¬
value of $29.58 per share.
Stock its inception.
ond-grade financing, when the pri¬
trades in the 13-14 range.
Also on leave of absence for the
mary distribution of such issues
is completed, the securities
last two years has been Francis
are
National Candy Active
A.
Bonner,
Vice-President and
bought and sold by over the coun¬
Despite
the
slightly
lower
ter dealers who must comply with
Secretary of the predecessor com¬
earnings of $1,332,500 reported
the 5% rule. If dealers must divide
pany.
Mr. Bonner, who is direc¬
for 1943, compared with $1,380,with their salesmen on the essen¬
tor of the credit policy office of
481
in
1942, National Candy
tial secondary market (no pros¬
the Office of Price Administration,
$3,260,000,000 is distributed tion of Securities Dealers has
Sound management recognizes throughout the continental United thrown a monkey wrench into the
Most of
the productive investment machinery. Regardless
these relationships and is gov¬ States.
erned by them because they are facilities financed by the Defense of the question of the liberality of
.
with • the
today
William
of
Company, a general partnership
with memberships on both New
York
and
Chicago
stock
ex¬
Missouri Brevities
the> stop or go signals to success¬
ful results. Credit ratios are not
revised
being
formation
.
of business.
Chicago
CHICAGO, ILL. — One of the
oldest Chicago business names is
increased
and
the
wages,
are
among
given for the smaller
profit.
A chocolate .coated 5$
candy bar named "Bob> Cat" was
introduced by the company late
reasons
in
1943, mostly in the St. Louis
area, and has met with a favor¬
able reception, according to Vin¬
cent E. Price, President. Distribu¬
tion is to be broadened in 1944.
plans to continue at his post in
Washington until the end of the
war.
Seise Elected Gov* Gf
.
Bankers Ass'n
CHICAGO—A.
dent
Seise, Presi¬
Mortgage
Association,
Bankers
dent
H.
Illinois
the
of
and Presi¬
Illinois
the
Mortgage
Northern
Co.
of
of
of the
Board of Governors of the Mort¬
gage
Bankers1
of
Association
America, H. G. Woodruff, Detroit,
President, announced on March
11.
Mr. Seise's term will expire
.
in 1946. He fills a vacancy
Comparative Data On
Insurance Companies
111.,
Rockford,
has been elected a member
by
the election
created
of L. E. Mahan,
St.
Louis, to the Vice-Presidency.
Mississippi Mr. Seise was an organizer of the
Illinois Association.*
Valley Trust Building, St; Louis;
Mo., have prepared a tabulation
of preliminary 1943 operating re¬
To Admit New Partner
sults pending the compilation and y
White
issuance
&
of
Company,
their
1944
Fire
and
H.
N.
Wall
Whitney, Goadby & Co
Casualty Insurance Stock Manual.
49
Copies of this interesting tabula¬
members of the
tion
for
giving comparative figures
companies may be had
request from White & Com¬
62
upon
pany,
;
Street, New York
will
Exchange,
McMorris
on
as
April 1.
a
New York
Citj
Stoc
admit) Leon
C
partner in the firr
'
Volume 159
THE COMMERCIAL &
Number 4264
ANNUAL STATEMENT
FOR THE
FINANCIAL
YEAR
CHRONTCT.E
ENDED DECEMBER 31,
1943, OF
TEXACO \1
AND SUBSIDIARY COMPANIES
CONSOLIDATE^
STATEMENT OF
INCOME ACCOUNT
(Excluding European Subsidiaries)
|
STATEMENT
OF
Gross Operating Incomb:
Net sales (see Note 1)
Miscellaneous
,
CONSOLIDATED EARNED SURPLUS ACCOUNT
$436,860,092.39
......
22,856,095.48
.......;..
....
$459,716,187.87
Operating Charges:
Earned Surplus, December 31, 1942...«
Costs, operating, selling and general ex¬
penses (exclusive of depreciation and
depletion)- (see Note 1)
$328,256,674.18
*Ta«es (other than Federal income taxes)
14,314,122.84
Amortization of drilling costs on producing wells, expenditures incurred on
dry holes and unamortized drilling v
costs on wells abandoned during the
year (The Company has since January
1, 1934, followed the policy of capi¬
talizing drilling costs of producing
wells, and amortizing such costs at the (
rate of 8%
per annum except as to
» ..
»
.
......
.
.
.
.
•*
/'
Balance Transferred from Income Ac-
Year Ended December
count for the
31, 1943
,,
fully amortized
are
15,745,160.09
incurred)....
as
' Balance
J
.
,
,
,
-
.
of wells located in Illinois which
costs
358,315,957.11
rgi.
$101,400,230.76
,
£
^on-Operating Incomh (Net):
Interest, dividend,
less
come,
■
>
DEDUCT-Dividends declared during 1943
"
.,
Earned Surplus, December 31,1943....
f
and other in¬
charges of
patent
miscellaneous
$928,233.01
Balance
Interest Charges:
Interest and amortization of discount and
funded debt
expense on
!
STATEMENT OF
Other interest charges
;
~
Deduct:
CONSOLIDATED CAPITAL SURPLUS ACCOUNT
Balance
•'
:•
.
Depreciation and other amortization (see
Note 3) v.
....,
i
Depletion and leases forfeited.
,
.
....
.
Capital Surplus, December 31, 1942
Net profit before provision for
,
deduct:
Federal income
i,;
Provision
taxes.
Federal
for
....,
.
income
(see Note 5)
taxes
Excess
Net profit for year 1943
Note 2)
v
.
Balance carried
,
earned
to
plus account
to
sur-
*.
,
,..v......
Company issued
(
adjustments in connection with the
taxing authorities in the
,j
$ 42,889,796.87
r
taxes
were
paid (of
of $86,511,998.99.
amount
r
>
^
liquidation of
~
subsidiary
a
company.
Capital surplus, december 31, 1943,
ac-
<
x'..
,
securities
(including U.
short-term
Other
S.
SI2,438.400.00),
:
at cost.
v.;Notes receivable
..
payable (in*
contracts
...........
.
receivable—
accounts
...................
and
notes
eluding $861,983.90 due in 1944
long-term debt)
securities
•
Notes and
'
Government (see page 4 of report to
stockholders)
,.....
•:
....
Government
j
Construction advances payable to U. S.
,....$
,..
foreign countries.
Marketable
.
LIABILITIES
Current Liabilities:
In United States
In
.
-
-
ASSETS
Cash—
.
CONSOLIDATED BALANCE SHEET
Current Assets:
■r
properties
to
value of capital
par
therefor
*In addition, state and federal gasoline and oil
crued)
assigned
over
C,......
........
-
;
value
stock of The Texas
Appropriation for reserve for
contingencies arising out of
war
of
acquired
(see
...........
.
.
>
the
-
...
on
»
.
.
Accounts payable...................
$
........
Accrued liabilities
Accounts receivable
Provision for Federal income
tain
Accounts
V.
S.
report
(see page
stockholders)..
to
Inventories—
Crude
Less
and claims receivable from
Government
,..
...,
27,109,816.84
.
are
U. S.
Treasury obligations
Total
1944.
liabilities.
current
16,580,000.00
...
...
Long-Term Debt:
3% Debentures, due April 1, 1959
of intercompany and
interdepartmental profits) which in
aggregate
.
......
lower
was
....
....
.
.
.
Total
Deposits
$
Replacement
3Vi%
83,483,050.44
60,000,000.00
^Mortgage notes payable to U. S.
Maritime Commission
10,664,756.63
.....
in
annual
Stallments of $746,108,00, in
tion with
current assets....
for
$ 40,000,000.00
3% Debentures, due May 15, 1965....
than
..,..
Materials and supplies, at cost.
Special
1933
refined
and
market
(cer¬
taxes
to
Dividend payable January 3,
elimination
the
—
<
,
subsequent
held for payment of taxes......
3 of
oil products and
merchandise, at cost determined on
the first-in, first-out method (after
-
returns
subject to final settlement with the
U. S. Treasury Department).. ...., .$ 20,488,880.73
Less-Reserve for bad debts
in-
connec¬
purchase of tankers
10,445,512.00
.
of
Construction advances payable to U. S.
„
Properties Under Agreements with
Certain U. S. Government Agencies
Government
12,911,531.00
.
.
Long-Term Receivables (Less
$250,000.00)
Investments
.
...,/,...........
in and
reserve
Reserves (As authorized by the Board of
Consolidated,
of $5,300,000.00
(see Note
cluding
in
Foreign
panies
For
and
Advances
Operating
in
the
"
...
..
\
yi
.
..
Sales stations, facilities and equipment.
Issued 12,000,204 shares........
Less —Held
shares,
Prepaid insurance and
Other
costs on
prepaid
charges
Contingent
taxes.
.....,
-
Reference
is
1,413,556.63
3,087,683.28
Company and subsidiaries.
.
.$
1,462,401.78
total
•
it
ultimate liability with
deferred
.,............
Liabilities
General Counsel reports that
is impossible to ascertain the
respect to other
contingent liabilities, including pending
lawsuits, federal taxes, claims, guaran¬
tees, etc., in his opinion, the aggregate
amount of ultimate liability in
respect of
such other contingent liabilities is not
materially important in relation to the
while
392.151,706.60
...
-188,950,222.19
pany's
,v.
-
incomplete wells.,.
and
.,b,
made to Notes 2 and 6 with respect to
certain contingent liabilities. The Com¬
.
expenses
.$300,005,100.00
76,349,337,37
Earned surplus (see Note 4)
Patents—at Cost (Less reserve for amorti¬
zation of $1,734,190.84),
Drillihg
..
813,925
value. .........20,348,125.00
treasury,
Outstanding 11,186,279 shares...... $279,656,975.00
$807,504,792.57
amortization and depletion
Deferred Okarges:
in
at j>ar
Capital surplus
2,725,853.02
Reserves for depreciation,
value $25.00—
104,301,834.00
.
Miscellaneous
.
par
Authorized 14,000,000 shares
64,543,143.14
—
7,000,000.00
69,516,286.75
....
Ships and marine equipment.
Less
-
;
....
212,414,697.91
■
contingencies..,».........
Capital stock,
^
svl
Total
2,066,993.08
20,000,000.00
Capital Stock and Surpuis:
^
And tank farms
contingencies arising out of the war
page 14 of report to stockholders)
For other
r:
■
Oil pipe lines
14,325,327.64
United
Properties, Plant and Equipment-at
a*- . ..
Cost (see Note 3):
Lahds, leases, wells and equipment (in¬
cluding drilling costs of producing
wells completed since January 1, 1934)5354,002,977.75
Refineries and terminals,
in
.-...$
J
to Com*
States, which are not Subsidiaries—
AT COST (of which $7,289*400.00 applies
to 50% owned companies)
less reserve
of $1,300,000.00 ........
.
...
(see
"
Investments^
.
foreign exchange fluctuations (see
Note 6)
of $28,000,000.00
reserve
included
For
Cost $95,307,035.53 (of which $64,467,*
248.20 applies to
50% owned com-
panics.), Jess
(see Note 6)
liabilities above.
Coun¬
tries, which are not subsidiaries-at
.
SI,600,000.00
current
Investments rjsr and Advances to Com¬
Operating
Directors):
For benefits under employees' plans-ex¬
6)
panies
641,288.16
Deferred Income and Suspense Credits
Advances to Euro¬
pean Subsidiaries not
less
Other long-term debt...............
of
reserve
The
consolidated
assets
of
The
Texas
foregoing balance sheet and statements are taken from the annual report, dated March 15, 1944, to stockholders of The Texas
Company, and should be read in conjunction with such report which contains the Notes to Consolidated Financial Statements and
the certificate of Messrs. Arthur Andersen &
Co., Auditors, attached to such financial statements. A copy of the report to stock¬
holders may be had upon application to
the'Company. The said balance sheet, statements, and report are not intended to
constitute an offer, solicitation of
offer, representation, notice, advertisement, or any form of a prospectus in respect of any
security of The Texas Company.
...
-
&fitMw>'</.k
Thursday, March 16, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
South
Boer
Some Factors In The
East
Proposed
the watchtowers of the
1
the form and past policies
not
in
the
on
earth's
of our
.
tegrity^ then under/the Constitu¬
tion, the people are secure, and
a
new
on
apparently
j oined
agreement or declaration on
"Fourth, they will endeavor,
that embraced the Four
with due respect for their exist¬ policy
ing obligations, to further the Freedoms', except that freedom
of speech, of the press, and of
enj oyment by all States, great
public worship were mentioned
or small, victor or vanquished;
in the Moscow Declaration Re¬
of access, on equal terms, to the
trade and to the raw materials garding Italy,
With the President's interest in
of the world which are needed
the Charter and the Freedoms in
for their economic
trade
and evil way.
the Declaration
has
Russia
in
that
in
possession of Iran.
the
give view far and government, because we were a
near.
Your eyes must be the first free
people,
unhampered
in
to see and you the first to make thought, in speech, and in action,
ready to meet the oncoming of because we were able to gather
tyranny.
Upon the Bench and the and enjoy the fruits of our own
prosperity,"
Bar of the country rests the great labors, unafraid, unspied on, unThis seems to forecast a free
responsibility of seeing that our victimized by government. If we
liberties and free institutions are shall change this now, we shall trade world. It would open up
preserved.
Legislators may be lose our place; we shall be gen¬ our trade and raw materials on
If
incompetent, executives may be erations building back to where "equal terms" to everyone.
Yet we Russia had signed, it would have
dishonest, but if the Bench and we were a decade ago.
Bar be honest and filled with in¬ have already traveled^ far along been supposed to open up her
nation
mentioned
the enemy states.
(Continued from first page)
man
Africa,
the Dutch munique by the United States,
the Philippines, and Great Britain, and China. It was
countries
surface
Post-War International Pattern
Bar
Indies,
other
and
raw
materials
in
like
no
concept also, but by no means a
one, either in theory or prac¬
tice. Some of you will recall that
the Central Powers in World War
I were disarmed by the Armistice
and the Treaty of Versailles, and
that for the rest of the world of
strong powers, President Harding
called a Limitation of Arms Con¬
new
Washington which en¬
treaties provid¬
ference in
tered into formal
ing
of
great
the
naval
powers.
plan
that
of
result
The
of the
reduction
for
armament
all
we
omissions noted could now know.
But the Atlantic Charter, signed
hardly have been a matter of
chance, and if the omissions were by President Roosevelt and Prime
by design, they could suggest a Minister Churchill, gave another
deep-seated
cleavage
on
the and I think the true and originally
whole program.
If Russia is not intended meaning to the phrase
willing
to
move
forward
on freedom from fear and want. This
mind,
the
you will recall, pro¬
paragraph Sixth, and
I repeat the essential parts here,
we may expect trouble ahead.
and raw materials.
the
"national policies
of
We must not overlook that the that"Fifth, they desire to bring principles of self-restraint and of their respective countries" would
about the fullest collaboration altruistic
be that, after the "final destruc¬
aspiration embodied in
between all nations in "the eco¬ the Charter are as applicable to tion" of Nazi tyranny, a peace
might lead us and what might be
The Constitution
our lot thereunder.
nomic field with the object of and
against us as to and against shall be established "which will
We may say a beginning word
securing,
for
all,
improved any other nation.
The Four Freedoms
They are not afford to all nations the means of
about the Constitution and the
labor standards, economic ad¬
something we are graciously to dwelling in safety within their
We shall pass over, for this pur¬
vancement and social security." bestow or impose upon others, we own boundaries, and which will
duty thereto of you who are here.
It has
seemed that tonight we
with profit analyze some
with us. But security and liberty of the policies now operating in
both take flight where the judici¬ our foreign relations, to see if we
could
determine
where
they
ary is corrupt.
free
will
institutions
who
those
From
still
should
live
have
revered that great document, we
have had
To
flippancy and derision.
might
our
pose,
decade,
a
diplomacy for the last
diplomacy which it
been the most pro¬
vocative in all our history, with
seems
has
manner.
after
Britain's
food,
are
prime
needs,
those
that
principles
are
of self-restraint Charter,
embodied in the Charter,
This seems a pious and praise¬ remaining free to follow our own
What we do to others, we
worthy hope, provided that these bent.
things are not to be gained by must permit others to do to us.
I need only to suggest here that
other nations at the expanse of
to make effective these freedoms
our own, that is, provided it does
of the common people
the possible exception of our dis¬
come
a
disrespect for
cussions with Great Britain in the
and a desire
to rid themselves
not mean a leveling downward to of speech, of the press (if it be
40's and 50's of the last century
of what they have been encour¬
over
trans-isthmian communica¬ a common standard, a procedure included) and of religion, there
aged to think are the shackles of
be
complete
cooperation
which is now openly urged by must
tions. But we will make this one
the Constitution. They are saying
thereto among the executive, the
some who call themselves, Amer¬
comment: It is now clear that our
we
should have a modern, an
icans;
judicial,
and
the
legislative
diplomacy during this last decade
up-to-date Constitution, one suit¬
"Sixth, after the final de¬ branches of a government. The
could lead only to war.
Some of
ed to our times and conditions.
struction of the Nazi tyranny, freedoms fail if any one branch
us
said this at the beginning of
Knowing
something
of
the
they hope to see established a is unwilling. Thus there must be
the decade as well as now.
sound
doctrines
regarding
the
peace which will afford to all control over the whole govern¬
Of the things we shall consider
Constitution
which
my
friend,
nations the means of dwelling ment to make them effective, and
tonight we may take first, be¬
Preston Richards, has been teach¬
in" safety
within their own if there be any unwillingness, as
cause it involves principles basic
ing in these purlieus, there is no
boundaries, and which will af¬ there will be somewhere, say, in
to
the
Administration's
whole
need to belabor here in this pres¬
ford assurance that all the men Timbuktu or somewhere else, this
foreign policy as now announced,
ence an argument that the Con¬
in all the lands may live out control must be from some outside
the President's unilateral declar¬
stitution is, in the matter of fos¬
their lives in freedom from fear source to bring these freedoms to
ation of the essentials of security
tering
the people; and of course, in the
and
protecting
human as embodied in the Four Free¬
and want."
rights, the inspired crystallization
last analysis such outside control
Here are two of the Four Free¬
doms—freedom of speech, free¬
of the wisdom of man and the em¬
must be by force.
Lincoln said:
dom
of religion, freedom from doms; but there is no mention of
bodiment of
all his experience
"No man is good enough to gov¬
fear, and freedom from want. We freedom of speech or of religion.
from the beginning.
Being thus
ern
another man
without that
shall pass over the additions made The latter are vital to free peo¬
engendered of the ages, how idle
other's consent."
by other public and pseudo-public ples; they cannot be granted to
seriously to think that a mere
We are reported to be training
a people
officials.
and still keep them in
century and a half could render
men
to
head
up
the occupy¬
The first two of the President's subjection. But one can think of
it obsolete.
The matter is brought
freedoms are known to political several countries where these two ing forces of some foreign coun¬
before you here only to urge upon
science
and help to speel in¬ freedoms of speech and of religion try; it may be they are to see that
you the duty which is yours and
the freedoms are given
to the
would threaten the existing order.
dividual liberty.
not to be pushed aside, of losing
Perhaps we may assume that A despot might give freedom from people thereof. Who is going to
no chance to teach the people, in
freedom of speech includes free¬ want, and might at least for a occupy us to see that we keep the
season
and
out of season, the
standards?
And when we shall
dom of the press.
These two run time anesthetize them into free¬
priceless value of the government
finish shortly our consideration
hand in hand. You know that dom from fear.
Freedom from
and free institutions set up under
of the freedom from want and
these freedoms are relative terms want for India, China, and Asia,
the Constitution.
When human
fear
you
will appreciate that
and that with us there are the generally, will tax the resources
freedom is outgrown, the Consti¬
there could be excuse for some
limitations of libel and slander. of the world, to say nothing of the
tution will be obsolete—but not
outside power to come in and
But whose freedoms are to be task of caring for Europe. Russia
before.
make us meet our professions and
given in the world setup—ours, appears to be committed to this
promises on those accounts too.
May I add one thought more: Britains, Russia's, or some new
plan.
They of the Bench and Bar who concept?
"Seventh, such a peace should
Freedom From Want and Fear
for power or place or gain, shall
Who will determine this stand¬
enable all men to traverse the
Freedom from want and fear
traffic in or prostitute the prin¬
ard of freedoms?
high seas and oceans without are not terms of art either in do¬
ciples of freedom that are basic to
hindrance."
mestic political science, or in in¬
The Atlantic Charter
our
republican form of govern¬
This is not a promise of free¬ ternational relations. We must get
We may at this point profit by
ment, will violate their solemn
dom of the seas, but the statement their meaning elsewhere.
oaths, will betray their clients, reading
the
Atlantic
Charter,
of a conclusion which might or
As
defined by the President
and will be traitors to a lofty, signed and issued as you know
might not be realized, and might when he announced them, free¬
even holy trust.
They should be by President Roosevelt and Prime
not mean at all what is meant by dom from want meant "economic
purged from our midst.
Already Minister Churchill. Its principles
freedom of the seas.
understandings which will secure
too many of us have shown an are
embodied
in
eight points.
"Eighth, they believe that all to every nation a healthy peace¬
declared the purposes of
easy willingness to let pass un¬ Some
of the nations of the world, time life for its inhabitants." This
challenged
encroachment
after the signers; others declared prin¬
for realistic as well as spiritual is not too definite or clear. But
encroachment upon our liberties. ciples for world-wide application
reasons
must
come
to
the explanations since made by him
The Bench and Bar of the nation among all nations, including our¬
abandonment of the use of force. as well as the actions of the 44
must
cease
to
temporize with selves. These points are;
Since no future peace can be United Nations Food Conference
tyranny. After quoting the words
"First, their countries seek
maintained if land, sea or air and of the since organized United
of the Master to the hypocritical
no
aggrandizement, territorial
armaments continue to be em¬ Nations Relief and Rehabilitation
Pharisees, that a "city or house
Or other;
ployed
by
nations
which Administration, have made clear
divided against itself shall not
"Second, they desire to see no
threaten, or may threaten, ag¬ that it is in the international mind
stand," Lincoln added: "I believe
territorial changes that do not
gression outside of their fron¬ to do what the President states
this government cannot endure
accord
with
the
freely
ex¬
tiers, they believe, pending the has never been done before in all
half
slave
and half free."
He
pressed wishes of the people
establishment of a wider and history, that is "feed all the peo¬
spoke of land-spread and govern¬
concerned."
permanent system of general ples of the world as we now know
ment.
Living today he might
If the Charter had been signed
security, that the disarmament human beings should be fed."
have phrased his principle: There
by Russia, these two announce¬
of
such
nations is
essential, That is a great concept, but a
can
be no freedom that is half
ments would give hope at least to
They will likewise aid and en¬ rather large order, having in mind
bondage; there can be no law that
heroic Finland, to Estonia, Latvia,
courage
all other practicable India's nearly 400,000,000, China's
is half royal favor or half lawless
Lithuania, Poland, and it might
measures which will lighten for
450,000,000, to say nothing of the
force.
There can be no partner¬
be, Rumania.
peace-loving peoples the crush¬ suffering millions in the rest of
many
there
has
.
.
.
ship between liberty and slavery.
Strength at Home and Abroad
We
have
underlying
because
international re¬
spoken
our
thus
lations of the future are our con¬
ditions
weak
strong
at
home.
within
our
We
outside them,
be
cannot
borders,
either
and
as
a
matter of force or as a matter of
ing burden of armaments."
"Third, they respect the right
of all peoples to choose the
These are the lofty aspirations
form
of
government
under and the tried, and failed, machin¬
which they will live, and they ery of the Treaty of Versailles. r
wish to see sovereign rights and
The Charter was not incorpor¬
self
government
restored
to ated in or referred to in the Fourthose who have been forcibly Nation
Declaration at Moscow,
deprived of them."
nor were the Four Freedoms, nor
This is carefully worded, but was the Charter referred to in
the underneath principle might the Declaration of Teheran, nor
raise some question about India in the Allied-Turkish Statement
We have built
ourselves to our present rank in
both force and morals, because of and
moral
strength.
Miimnin
Porto
Rico, Egypt
and
the
at
Cairo,
nor
as
vides in its
trade—markets—
the
Cairo
Asia, in Europe, in Africa, in the
Latin Americas, in the continents
and islands of the seas;
our
own
As
dent,
and then
defined by the
freedom
from
Presi¬
fear meant
of arma¬
point and in such
"a world-wide reduction
ments to such a
thorough fashion that no nation
a position to commit an
act of physical aggression against
Com¬ any neighbor." This is a great
a
will be in
that all the
assurance
men
live out their
from fear and
in all the lands may
lives
freedom
in
The Atlantic Charter was
want."
incorporated by reference into
understanding with Greece
and Yugoslavia, and was noted in
the Declaration on Iran, while
freedom of speech, of the press, of
political belief, and of religion
our
mentioned
were
the
in
Declaration Regarding
Obviously,
laration
Charter's
the
that
a
will
dec¬
shall
peace
that
established
Moscow
Italy.
assure
be
that
"all the men in all the lands may
live
their
out
from
fear
lives
in
freedom
and
want," supple-'
mented by the President's meas¬
ure of feeding "all the peoples of
the world
know human
as we now
beings should be fed" and as they
never
have
which
may
ments
of
fed
been
the
before, to
the state¬
added
be
Food
Conference
that each government accepts the
responsibility of making it pos¬
sible, so far as within their power,
of providing each person with.,
"adequate social-security meas¬
ures, such as family allowances,
social
insurance, and minimum
wages," all these aspirations and
purposes take the principle out
from
international
normal
a
operation between States them¬
selves, and make it into a domes¬
tic operation for every country,—
Germany, Japan, Italy, Holland,
Great Britain, China, the United
States, and all down the list. Fur¬
thermore, the thought behind it
all
seems
to
be
standards
stated
that it is
business
nation's
maintained
to
see
are
every
that the
reached and
all the other
among
nations.
Now the Charter also
affirmed,
that the declar¬
ing powers "respect the right of
all peoples to choose the form of
government under which they
will live," and the Teheran dec¬
laration
affirmed
(Russia
was
as
have seen,
we
that the negotiators "look
here)
with confidence to the day when
all
peoples of the world may live
untouched by tyranny,
and according to their varying de¬
sires and their own consciences."
free lives,
But
free government is a gov¬
a
by uncontrolled majori¬
I think the world has never
ernment
ties.
seen
any
other kind of free gov¬
ernment.
Suppose
a
majority
government in any State—Ger¬
many,
Holland, Poland, Russia,
Great
Britain,
or
the
United
States—sets
up
government
a
which fails to operate so that "all
the men" in that country are able
to "live out their lives
from fear and
fined.
want"
What then?
as
in freedom
finally de¬
As the Presi¬
dent declared, no
130 odd millions.
first
afford
nation ever yet
government. Are any
to be brought under compul¬
had such a
of
us
sion
to
If not,
maintain
the
standards?
the standards will not be
If so, then you have
maintained.
a
military occupation and war.
A plan for providing this freecontinued on page 1112)
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4264
CARBIDE AND
UNION
AND
operating
in
1111
CARBON CORPORATION
SUBSIDIARIES
the
united
CONSOLIDATED
states
and
canada
BALANCE
December
31*
SIIEET
1943
assets
liabilities
Current Assets
Current Liabilities
$ 75,092,180.20
Accounts Payable
40,000,000.00
Cash
Dividend Payable
United States Treasury Tax Notes
Marketable Securities (Cost or Market, whichever lower).
Receivables
3,695,562.93.
6,926,229.86
or
or
Interest
less)
\
$
175,104,586.71
205,000.00
88,196,129.74
$115,502,606.22
for
Wartime Adjustments (See Note 2)
j.
Deferred Liabilities Under Government
Contracts
Union Carbide
of
Carbon Corporation Due Sep-
and
tember
l, 1953, After Deducting Sinking Fund
Installments Due Within One Year (as above)
25,446,987.63
666,557.59
22,800,000.00
.
Total Liabilities
Deferred Charges
2,533,563.30
Prepaid Insurance, Taxes, etc.
Excess
Reserve
for
Profits Tax (See Note 0)
8,244,921.72
l00
Total Assets..'
of
Union Carbide
and
20,000,000.00
,.............
Carbon
corporation— 9,277,788 shares of no par value
including 136,649 shares held by the Corporation
Patents, Trade-Marks, and
Goodwill
$142,391,911.21
Postwar Contingencies (See Note 6)
Capital Stock
not
$192,879,842.43
Earned Surplus
104,185,352.56
$459,457,106.20
CONSOLIDATED
INCOME
'
Income
AND
SURPLUS
STATEMENTS
•
surplus
•<;
$156,378,292.39
Earned Surplus
January 1,1943
at
$101,546,964.35
Add-
Deduct—
Depreciation and Depletion
Amount Transferred from Net Income
$ 17,792,791.85
Amortization
Interest
Income and Excess Profits Taxes (See Note 6)
79,882,279.12
118,035,903.29
...
$ 38,342,389.10
Net Income
$ 32,806,622.95
Increase in Market Value of Marketable Securities
19,593,385.30
767,447.02
at
December 31, 1943
301,426.37
Reduction of Valuation Reserve—Securities sold dur¬
ing the
32,870.38
year
amount
33,140,919,70
$134,687,884.05
(Net Income does not include Postwar
Refund of Excess
Deduct—
Profits Tax in the
of $4,990,235.24)
Dividends Declared
Amount Transferred to Reserve for Post-
Payments
Contingencies (See Note 6)
$ 32,806,622.95
on
$ 27,833,364.00
Employees'Past-Service Annuities
der Retirement Plan
5,535,766.15
Amount Transferred to Surplus
war
297,065,194.99
$459,457,106.20
Year Ended December 31,1943
emocni'
2,500,000.00
1,589,304.99
Fifteen-Year, 2%% Sinking Fund Debentures
757,919.61
3,050,932.87
20,971,577.56
•
Other Securities
ii
$ 83,989,779.63
..........
..:
4,001,350.09
Provision
$349,475,451.23
174,370,864.52
less)
Foreign Subsidiaries
of
1,800,000.00
Total Current Liabilities................................................................
Affiliated Companies in United States and Canada
Affiliated Companies outside United States and Canada
Postwar Refund
6,958,341.00
Sinking Fund
Other Accrued Liabilities
$248,127,045.84
Land, Buildings, Machinery, and Equipment
Deduct—Reserves for Depreciation and Amortization
Investments (Cost
on
Income, Excess Profits, and Other Taxes..........
74,378,066.91
Total Current Assets
or
year
Accrued Liabilities
54,961,235.80
Market, whichever lower).
Fixed Assets (Cost
one
Debentures
$ 18,035,005.94
Other Notes and Accounts
.
Installments due within
(After Reserve forDoubtful)
Trade Notes and Accounts
Inventories (Cost
$ 18,548,135.48
January 1, 1944,....
Earned Surplus
at
un¬
2,669,167.49
December 31, 1943..
30,502,531.49
$104,185,352.56
notes relating to financial statements
1—-The
as
principles used in preparing the accompanying
consolidated statements for the
year 1943 are
follows:
All
subsidiaries that are one hundred per cent
owned, and operate in the United States and
Canada, are consolidated.
■
Current assets, deferred charges, current liabilities, and earnings of Canadian subsidiaries conhave been converted at the official rate of exchange. Other assets and liabilities of
Canadian subsidiaries consolidated were converted at the prevailing rate at time of acquisition or
f
...
solidated
•
.
assumption.'
'
■
•
owned, are shown as investments. Only that part
subsidiaries that was received during the year as dividends is included
Unaudited reports covering less than a full year indicate that the income of companies
Foreign subsidiaries, all one hundred per cent
of the income of foreign
in income.
;
paying such dividends will exceed the amount of dividends paid.
Affiliated companies, less than one hundred per cent but more than fifty per cent owned, are also
shown under investments. The equity in the net worth of some of these affiliated companies carried
in investments at $3,155,231.17 increased $1,388,237.52 between January 1, 1938 (or date of acquisi7;
tiou
whichever is later), and the date of latest unaudited reports received. Of this increase,
$282,757.80 is applicable to the current period. No reports are available for 1943 for the remaining
affiliated companies carried in investments at $653,621.31. The consolidated income does not include
any part of the undistributed net income of affiliated companies.
2—Income for the year 1943 has been charged with $2,500,000.00 to provide for unusual adjustments
which may arise in connection with wartime operations. This amount is shown on the balance sheet
as Provision for Wartime Adjustments.
'
3—The Trustee of the Savings Plan for Employees holds Collateral Debentures of Carbide and Carbon
Management Corporation secured by 88,475 shares of stock of Union Carbide and Carbon Corporation
under plans for employees. As of December 31, 1943, the assets held by the Trustee amounted to
$5,462,984.63, and the unpaid balance of amount borrowed by the Trustee in connection with the
purchase of debentures was $3,600,000.00. Union Carbide and Carbon Corporation has agreed to
maintain the assets in the Trust Estate at an amount sufficient to repay the indebtedness and permit
the distribution of the Trust Estate to the persons entitled thereto.
\
4—Payments relating to years
prior to July 1, 1937, were made to insurance companies in the maximum
amounts acceptable to such companies to apply toward the purchase of Past-Service Annuities under
the Retirement Plan for Employees. These payments were charged to surplus. Payments for the
5
purchase of Future-Service Annuities were charged against income.
a review of the operations for 1942 under the War Profits Control Act has been made during the
past vear. Pending final settlement under the. Act, a reduction has been made of $8,250,000.00 in
the value of sales and of income before taxes for that year. After allowance of $7,174,592.90 paid
in taxes, the estimated cash refund to the Government in the amount of $1,075,407.10 has been
deducted in determining Income for the year 1943. This amount has been included in Other Accrued
Liabilities. Also/a reduction in the Postwar Refund of Excess Profits Tax for the year 1942,
amounting to $526,001.39, lias been charged against the Reserve for Postwar Contingencies. It is
impracticable to determine the effect of this Act on the operations for the year 1943. Therefore, no
specific provision pertaining to 1943 operations has been made out of 1943 income other than the
general provision for wartime adjustments against which possible refund under this Act and other
adjustments arising out of war conditions will be charged.
6—Income and Excess Profits Taxes
amount of
are charged against income after
reducing such taxes by the
$1,429,100.00, which represents the Debt Retirement Credit permitted under the Revenue
Act of 1942. No deduction has been made from such taxes for the Postwar Refund of Excess Profits
Tax in the amount of $4,990,235.24, and consequently this amount is not included in net income.
The Postwar Refund and $5,535,766.15 transferred from net income have been added to the Reserve
for Postwar Contingencies.
auditors;
Union
report
Carbide,and Carbon Corporation:
We have examined
the balance sheet of
Union Carbide and Carbon Corporation and its
hundred per cent owned subsidiaries operating in the United States and Canada, as of
December 31, 1913, and the statements of income and surplus for the year then ended, have
reviewed the system of internal control and accounting procedures of the companies and,
one
without making a detailed audit of the transactions, have examined or tested accounting records
of the companies and other supporting evidence by methods and to the extent we deemed
appropriate. Except that it was not practicable to confirm receivables from United States
Government agencies, as to which we have satisfied ourselves by means of other auditing pro¬
cedures, our examination was made in accordance with generally accepted auditing standards
applicable in the circumstances and included all procedures which we considered necessary.
Subject to the omission from income of postwar refund of excess profits tax, which, we
believe, constitutes a proper addition thereto, in our opinion, the accompanying balance sheet
and related statements of income and surplus present fairly the position of Union Carbide and
Carbon Corporation and its subsidiaries consolidated at December 81, 1943, and the results
of consolidated operations for the year, in conformity with
generally accepted accounting
principles applied on a basis consistent with that of the preceding year.
^ York,
New
v
„
,
N. Y., March 11,1941
1
HURDMAN AND CRANSTOUN
Certified Public Accountants
mediate
the
already
holding back of the produc¬
a
tion of any crops
outlined in some fullness.
A
You will recall that in MayJune of last year a 44 United
Nations Conference on Food
and
Agriculture
was
held at Hot
Springs, Va., at a nominal cost for
the foreign delegates, with you
apparently footing most of
the bill.
The work of this conference
has
are
control
price
of
system
measures
"which compete
with essential foods."
for acreage
Freedom From Want
; and me
also
Grand
to be set up to pre¬
vent "fluctuations in the
Design of relief from
the national
prices of
food, the instruments of produc¬
tion" (described, in another place
as
"fertilizers and machinery"),
and also "other necessities, in¬
cluding industrial goods."
The plan is to aim at a "world¬
wide policy of industrial and agri¬
cultural expansion," which- will
"1%
income of the
of
coun¬
try for the year ending June 30,
1943,"
(Continued from page 1110)
from want has been
stricken
want in all the world—is
Post-War International Pattern
dom
in
relief
war
trans-atlantic areas—not counting
Some Factors In The Proposed
"
or as
fixed by
a
resolution
on
.by
any - ipeans
We will
finance and industry.
only of the major
conclusions of the conference as
embodied in its Final Act.
These conclusions may be gath¬
sketch
a
few
the scientific
The first, while
wordy, repetitious, and preten¬
tious sometimes to the point of
ered into two groups:
and the
smile-provoking,
contains many admirable and de¬
sirable things.
Perhaps it is not
really a fault they are unreachably altruistic.- The Final Act in¬
corporates and reincorporates ad¬
almost
being
'
political.
vanced theories on foods
It
values.
to
plans
and food
meet
the
dietary problems and necessities
of the entire world, as seen by the
experts met at the conference.
(It had nothing to say about the
of alcohol, nor of the poison
of nicotine, nor of caffeine, nor;
opium and all its derivatives, nor
of any deleterious drugs.)
The
curse
documents annexed to
Act
the Final
pointed out the dietary needs
South, of
India's 400 millions, of China's 450
millions, of the peoples of tropical
Africa, of Egypt, of Mexico, Chile,
Bolivia, and elsewhere.
Great
and diseases of our own
Britain
out
stood
as
the
only
receiving
commendation.
Russia
escapee! all mention. But the pur¬
pose of it all is good, just as ethi¬
cal and philosophical standards
Wages and hours are to come
under consideration as to farm
labor and industrial
workers.
Indies,
nually. - But as time goes on and
we
begin our relief to all the
world, we shall have to put far
greater sums in the pot, by loans
or otherwise, to our less opulent
and wiser members, to keep the
game going.
ference provided for the establish¬
ment of an Interim Commission
and
Organization"
Permanent
a
Neither
seems
to have been estab¬
change."
,
; wheat,
the
export of
we
had prevented and
which we. had to buy from them
Dutch
East
grown
nations
have
which
in
form
a
law.
.1 trust you will pardon my giv¬
ing my own formula for interna¬
tional rule: It fits this situation:
fancy prices; with a partial
knowledge
of the billions we
at
never
,
.
standards
established, containers
to be standardized; transpor¬
to
grade
be
tation
charges
trolled;
reduced.
abun¬
be "an
and
and Austria,
the
Balkan
States, and perhaps
Russia, a safe
make
and
Germany,
Poland,
place in which they may live "in
freedom from fear and want."
This
fact
becomes
clear when
provisions of the in¬
ternational
agreement
covering
integral part of this program to
primarily war relief, which stipu¬
reduce barriers of .every kind to
dance"
it
is declared
to
we
note the
nance
our supposed armed imperialism;
You never ask an¬ with an
indisputable knowledge
other power to do what you do
that we are bringing the whole
not do, unless his own laws en¬
world into a state of mind where
title you to ask for it. That is a
they expect from America every
sort of living-in-glasshouses for¬
conceivable help in any dreamed
mula.
of amounts, by money and other
Liberty, freedom, is the right assistance without .any : thought
of the majority to rule. The love of the
slightest responsibility on
of liberty is a fairly universal
their part that they are ever ex¬
passion of humanity when free to pected to pay any considerable
express itself.
But liberty was
part of it back to us; with a mon¬
never implanted in the hearts of
umental Santa Claus-minded con¬
a people from the point of a bay¬
trol
here, giving gratuities, not
onet, nor will it ever be from the as
the; real Santa; Claus, out of
by so doing.
nose
of
an
airbomb.
Can
we
keep
the
lates
"mutual
"for
the
return
to
their
nations,
food resources of all
peoples.
The aim is that in every coun¬
try "each person" who is "with¬
out an adequate diet" shall have
his
"in the direc¬
the physiological
diet improved
we
All
stand:
this
is
on
world¬
a
wide basis; each and every
nation
two-way street;
it is not alone what we are going
to do for and to the others; it is
is involved; it
is
a
ourselves have minority prob¬
what they are going to do
The
plan
allocation
of
contemplates
the
production of
the
particular foodstuffs to particular
areas.
For example, the increas¬
ing of herds in certain parts of
Europe, and the holding back of
the rebuilding of depleted live¬
stock
herds
in
other
countries
(this probably refers to us), and
130 millions who do not enjoy
affluence
the
be treated.
Since fear and want
have
full
^billions of dollars, and Canada's
only 9.8 billions of dollars, while
expenditures
were
125.2
billions, and that apparently we
our
have
not
lessened
that
ratio
to
date; with the forecast that our
ante
the
into
game
the
overhead
of the United
cost
of
Nations
Relief and Rehabilitation Admin¬
istration is to be 40%
of the total
(the United Kingdom gives 15%
and
Russia
handed
out
15%,
to
the
with
driblets
other
nations,
whole British
this are to be eliminated, this airplane the total for the
bush- persuasion must of course not use Empire being only 24.8% against
our 40%);
with our initial com¬
headhunters
of fear.
(Perhaps the airplanes are
measured out
by
document for the Australian
men,
or
the
Borneo.
speaking of finances, our
present ante to sit in on this
gigantic game of strip resources
and well-being and just for im¬
And
to be used merely to
drop educa¬
mitment
lief
for
immediate
war
re¬
approximating 1.35 billions
pamphlets.) But who will
of dollars; with the recollection
lay down and who will apoly the
rule as to fear or want—either for of the principle that sent millions
Russia
or
for us?
Whose air¬ of yards of our rayon to clothe
tional
pockets,
own
contrary, out of your
my
superfluous in me to
it would be
about our future
He who would discover
anything
say
finances.
them, must fathom the deepest
abysses of the lowest financial
hell. I have no desire to make the
trip, but we may all have to make
it together.
But let us assume we get the
somehow—that we dis¬
a gold mine, or strike an
well* or that Britain and
France pay their first world war
debt, or that Britain and Russia
compensate for their lend-lease
aid, or that the Latin Americas
repay to us the great advances
we have made to them, or that
Britain says you go ahead and re¬
money
cover
oil
from world trade, or that
pass the hat for us,
everybody burns up the
coup
nations
the
or
that
he
bonds
Government
owns,
so
that somehow we come into funds
—still
will
it
take
than
more
to work out this plan. It
will take grit and work and sac¬
rifice from all of us, not merely
money
31,
employment and pros¬
lems as old as the nation.
We
perity;" with the knowledge that
have the colored minority, we
Britain's total expenditures dur¬
shall have a Japanese minority,
ing the war period—July 1, 1940,
and
we
have
other
minority
to June 30, 1943, was only 60.9
groups
that bid fair to bring
for and trouble.
We have always had
requirements
of health," with
to us.
For we are only one out some want
amongst us. Who will
"adequate social security meas¬
of a present 44 members of the
bell this cat of America?
ures, such as family allowances,
(now
raised
by
social insurance, and minimum organization
International Police
Russia to 59), and we are the one
wages."
Furthermore (and the
I suppose this is where this
with the greatest present power
phrases may be ominous), there is
of production, of diversification, much touted international police
to be "some form of direct action
of
transportation,
of available force appears.
A few airplanes,
to make protective foods available
natural resources, and of financial we are told, will be able to per¬
free, or at low prices, to groups
suade the majority to treat the
with inadequate diets."
That is, power. We are the Santa Claus.
But remember also, we have con¬ minority as someone else outside
if you need food, find
it, and
siderable
numbers amongst our the country believes they should
take it.
tion of obtaining
but' on. the
pockets and
pockets—with all this in mind
their
the few; it will spell scant ra¬
1944; with a total war tions, long and
longer hours,
program authorized
since July, fewer comforts, cheerless days; it
1940, of 344 billions; with a re¬ will demand of all, not the few,
quest
for
an
additional
100 the highest order of patriotic de¬
billions, making a total on this votion; civic virtue, moral cour¬
count of 444 billions; with con¬ age, intense industry, and com¬
stantly rising taxes and cost of plete unity to a single purpose,
living; with drastically and in¬ And not only must we here in
creasingly curtailed production of America have these things, but
foodstuffs; with a reported al¬ they must be the common posses¬
most saturated but still accumu¬ sion of the peoples of the world.
Do you
lating stock pile of ships, steel,
believe we and the
copper,
aluminum,
small arms world have the civic virtue, the
ammunition, and apparently other moral force, the honesty, the
armaments, to say nothing of the spirituality, the brotherhood of
still unused stock piles of alum¬ man in our hearts,
enough to
inum cooking utensils and used carry all this through?
Dec.
responsibility" of international trade and to elimi¬
homes of prisoners, exiles, and
as likewise "co¬ nate all forms of discriminatory
other displaced persons," and also
ordinated action to establish such restrictions thereon, including in¬
conditions of international secur¬ equitable policies in international properly lays it down that relief
shall be distributed fairly, "with¬
ity as, well make possible an ex¬ transportation, as effectively and
out discrimination because of race,
panding
and
balanced
world as rapidly as possible."
creed, or political belief," but adds
economy."
One provision more—I quote it
that account shall be taken, how¬
In summary, the plan provides in full:
rubber tires
we
collected with
ever, of "needs
caused by dis¬
for a control and regimentation of
brass bands and uninformed hys^
"The democratic control and
criminatory
treatment
by
the
the production and distribution of
educational
programs,
which enemy during its occupation of terical enthusiasm; with a na¬
foodstuffs throughout the world
tional spending philosophy which
are features of the cooperative
the area."
and among the nations of the
is
described
as
holding
"that
movement, can play a vital part
world.
The organization is not a
Looking to the post-war period,
in the training of good demo¬
public finance is really only a
and remembering that the fear
magnified Red Cross to adminis¬
cratic citizens, and assist in in¬
matter of bookkeeping, that a ris¬
and want concept is intended for
ter help to stricken areas through¬
ing debt has no adverse conse¬
ducing a sound conception of
out the earth, but a sort of super¬
permanent application, not tem¬
economic matters."
quences, and that without a con¬
state to supervise and direct the
porary, we must not overlook that
stantly increasing debt we cannot
Now, gentlemen, please under¬
is
all the
are
to fear more our
prime purpose of 3 billions are to be raised by tax¬
protecting the minority groups of ation and 5 billions by deficit fi¬
Europe who have fled their native nancing, or a total of 60 billions
countries
but
wish
to
return of debt for the year, making a
thereto after the war—a purpose total debt of, say, 230 billions by
to
Latin
on
reported now
economic domi¬
than they formerly feared
who
America
...
.
forced
virtually
have
complain that some
other power does what you do,
unless he violates his own law
You
fostered for the
.
International
are
To reach "an economy of
underlying principle is that
the establishing of "freedom from
want for all people in all lands"
The
is
it
treaty under the tests heretofore
other
and
,
are
to be con¬
middlemen
are
to be
eliminated, and marketing, pro¬
cessing, storage and distribution
costs, and margins between pro¬
ducers and consumers are to be
of the plan.
While designated as
agreement,
.,
are
good,
However, I wish to say a few
words about the political phases
nations.
an
our constitutional
However it is to be
country mentioned and
are
Netherlands
treated, it is a
straight face
and say that
be
understood,
as
an
Executive bombers and occupying armies
studied "to promote the produc¬
Agreement and so not requiring are to bring subjection without
tivity and efficiency of agricul¬
the treaty action of the Senate,
J fear,—that they will give freeture and the welfare of its work¬
from fear th
h fear?
ers;"
Could this mean that the though imposing obligations upon (d
us and upon all the other signa¬
State is to take over the owner¬
Our Finances
tory States, including the payment
ship of the land?
of
moneys
from public funds.
Having in mind the meeting of
Agricultural populations are to
Fourteen of the nations realizing all these
obligations incident to
be moved from overcrowded agri¬
its character signed with reserva¬
bringing the Four Freedoms to
cultural areas, both intra-national
tions, making it subject to rati¬
and
international, and in such
thp peoples of the world, as well
fication in accordance with their as the cost of maintaining our
cases the organization is to sup¬
constitutional
procedures.
For own homes
and
feeding
and
port arrangements "to provide
us, the agreement was signed by clothing and housing and educat¬
adequate
safeguards
for
the
the President himself, and with¬
ing our own children—with all
settlers."
out reservation or reference to this in mind we may give brief
International
commodity
ar¬
constitutional procedure.
notice to our own financial situa¬
rangements are to be made, in¬
tion.
I believe I am reasonably
Protection of Minorities
volving "changes in the scale stnd
accurate
in
these
astronomical
character of production" of farm
Having all the circumstances
products in the one country or and conditions in mind, and tak¬ calculations.
the other; "adequate reserves will
With a gross public Federal
ing
into
consideration certain
be maintained."
minority
influences that have debt, direct and guaranteed, of
There is to be brought about
170.6 billions of
been operative in the framing of approximately
"an equilibrium in balances of
all this, it is difficult indeed to dollars; with a projected expendi¬
payments" and an "orderly man¬ escape the conclusion that these ture for the future of 8 billion's
agement of currencies and ex¬
of dollars per month, of which
principles were invented and are
Land tenures likewise are to
only
,
the
them elsewhere.
applied in
■
in
them
have
44
the small farmer.
India, in Africa; the
dred and fifty million dollars an¬
The Final Act of the Food Con¬
Thursday, March 16, 1944
planes are going to bomb us into the dusky beauties of North Af-.
subjection without fear, so that rica while our own women folk
the minority, not the majority, went without; with a recollection
shall rule as somebody else thinks of the shiploads of wheat we sent
they should rule?
Britain also to the same place to feed starving
has some minority problems in natives, only to - find these - same»
natives with large stores of home¬
of Congress, one billion three hun¬
received the
attention it so richly deserves.
I require "reorientation in agri¬ lished to date. Instead, there has
been established the United Na¬
culture."
: urge you -gentlemen: to study it,
tions
Relief and
Rehabilitation
Plans
are
to be devised
"to
for a plan was there outlined for
Administration under an agree¬
the regimentation of the world in ensure
an
adequate
supply of
ment signed in Washington, Nov.
the production and distribution of credit to agriculture," at low rates
foodstuffs, with aside observations of interest; aid is particularly for 9, 1943, by the representatives of
not
C
THE COMMERCIAL & FINANCIAL CHRONICLE
1112
National Deficiencies
Where do
we,
ourselves, stand
qualities?
in these necessary
You know how near we are to
Cleveland's
the
"Public
dictum:
ficials
are
people."
of¬
the
of
You know that now we
sometimes
have
shocks.
that
trustees
a
So
shamelessness
also
know
you
of our people
expect to live without work as
of right, and intend so to live;
that
great
that
our
groups
children, who tomorrow
must carry on, are
being corrupt¬
false economic, social, gov¬
ernmental,
and
religious
doc¬
trines, even in our public schools;
that we are oppressed by a great
mass
of rules, regulations, and
directives
that
are
unconstitu¬
ed by
tional, that are the offscourings
of legally dissolute bureaucracies,
and that are making of us a law¬
people, both by omission and
commission; that we are unbe¬
less
food, mate¬
machinery, transportation,
manpower, and above and beyond
all, wasteful of the virtues that
go
to make character; that we
lievably wasteful in
rials,
are
increasingly careless
and our promises,
that affects
all
word
of
a
our
care¬
lessness
classes
all
vocations; that the Gov-
and
(Continued on page 1114)
•Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4264
In
The
Memphis, Tenn., Light, Gas
Water Department plans to re¬
&
tire
n"%
of
block
a
electric
$389,000
bonds of 1964 and has budgeted a
addition,
the firm points
Feb. 1, 1944, the
sinking funds for the $228,500,-
■MiiMeipsd/News^^
out
equivalent it
will pay in taxes to the city,
giving the city a total revenue
of $1,112,795 from the utilities
$612,795
the
as
that
000
on
outstanding
amounted
to
consistent
term
bonds
$148,694,881,
with
actuarial
and
re¬
quirements these sinking funds
this year.
of $400,670 to pay the prin¬
cipal, plus the 3% call charge. A
U. S. Supreme Court Rejects
further
$756,359
of
maturing
bonds will be paid off during the Coral Gables Debt Refunding
present year, reducing the elec¬
The U. S. Supreme Court on
tric department principal debt to March
13, by a 4 to 4 voting, split,
$11,191,000
from
the
original affirmed rejection by the Fifth
aggregate of $15,750,000 in June, Federal
Circuit
Cotirt
of
the
will be further built up to meet
the principal of the debt at ma¬
1939.
in 1938.
sum
bond principal and interest will
?
be paid on the entire utility debt
this
this
and
year
will
leave
$14,734,000 of outstanding bonds
on
the
municipally - owned
properties, according to the 1944
forecast
of
'£ the
division,
of
which Major Thomas H. Allen
is President.
The last of the gas
department debt, which totaled
$5,250,000 when the property
was purchased by
the city in
1939, will be paid off on June 1
next.
After paying $394,760 in
bond principal, the water de¬
partment indebtedness at the
close of the present year will be
$3,543,000.
The
forecast ;reveals
the
divi¬
sion expects to end the year with
a net profit of $3,026^895; Its rev¬
contemplated to be $14,682,111
and
operating
expense
$10,341,805.
Thus net revenue
would be $4,340,206.
Additional
deductions of $508,658 for bond
interest and $804,753 for'sinking
fund appropriations are planned.
Maj. Thomas H. Allen, presi¬
enues are
dent of the L. G. & W. Commis¬
sion, already has announced a $4,500,000 construction program de¬
signed for the three departments
which will consume a major part
of the remaining net earnings of
accumulated since it
the division
began operation.
The widespread
building pro¬
off to a
expendi¬
ture of nearly $2,000,000 for work
Major Allen said is "badly needed"
because of demands made recently
gram is expected to get
fast start this year with
the
on
division
additional
for
service.
no
term
more
be authorized,
bonds may
all
new State
bonds must be serial, according
to the Constitution as amended
as
&
Co.,
of
Nashville,
complained
1936
the
National
American
the
and
Bank
Petersburg,
they
and
on the ground that
refunding program,
anticipation of
revenue.
This
is
in contrast to net temporary debt
of $144,364,706 on June 30, 1933,
and the
recent
more
Federal Municipal
Bankruptcy Act, had been aban¬
high of $75,744,335 on June 30,1939. On Feb.
1» 1944, the only unfunded debt
doned; that discriminatory set¬
tlements with certain creditors
consisted of $404,486 of notes in
anticipation
of
appropriations,
adopted by the city before pas¬
of
sage
the
and
and
that under the 1940 plan non-
tion
subsequently
were
bondholders
consenting
being
made,
been funded
were
into
"bludgeoned
sub-
Important
the
10
remainder
stantially reduced within recent
the
of
ending March 31,
years
bonds
of
will
New
York
1954,
State
total
$212,158,000, or
outstanding serial
bonds, according to the municipal
department of K. W. Pressprich &
Co., New York, which says in a
study on the value of the State's
52.5% ' of
bonds
paid,
the
that
in
recourse
all
to
these
bonds
probability,
refunding,
a
of the State since 1849.
cording
the
to
fact
the
that
firm,
thefre
bondholders,
net funded debt have been sub¬
present fiscal year and the next
maturities
to
the study, is that gross and
says
$72,000,000 Since 1938
Within
by the bond offering
of March 1.
mission."
N. Y. State Net Debt
Cut
$7,062,000 of bond anticipa¬
notes, most of which have
will
be
without
practice;
This, ac¬
The all-time high of the
years.
gross
funded debt
June
30,
of
As
1938,
Feb.
as
1,
reported
$681,823,000.
was
1944,
including
bonds sold March 1, the amount
was
$617,166,000.
decline in
the
Moreover, the
net is a better
bond
The
$468,471,119.
tion in six years of
or
This is a reduc¬
$72,828,038
ago,
principal
defaulted
his father
and
of
Pershing,
Dick
& Dawson, mu¬
attorneys of Den¬
bond
ver.
The
firm
of
Masslich
chell,
been
identified
with
a
and
years
trust
This
introduced
secure
such securi¬
instrument
was
by the firm to secure
bridge revenue bonds issued!
by the City of Louisville for the
in
the
on
maturities
contract rate.
the
series A
The
at
re¬
funding obligations are dated May
1, 1944 and mature serially on
May 1 from 1944 to 1953 incl.
It
is
of
the
that
believed
a
portion
placed pri¬
vately in the United States by the
issue
Dominion
will
be
Securities
Corp.
Harriman Ripley & Co., Inc.
The
and
rying his firm's legal approval
which
the
Mr.
Kentucky^
and
Commonwealth
Bonds
of the
the
negotiations between represen¬
creditors,
city
city
since
which
has
initial
the
offi¬
super¬
default.
Aside from the current isue, the
program
for
calls
contract rates
on
payment
of
the remainder
of the approximately
State
$228,000,-
of
Into
fed
the
of
Water
of
Pennsyl¬
Tunnel
the
City
Revenue
of
Mobile,
Revenue
Bonds of
the City of Miami, and the re¬
cent issue of $20,000,000 Elec¬
tric
Revenue
Bonds
of
the
Puerto
Rico
Water
Resources
Authority.
The
firm
opinions
on
has
furnished
hundreds
of
a
fundi separate
from net earnings.
and apart
Major Allen said the "R.
fund
R."
now
This
$3,753,000.
is
both
general obligation and rev¬
brought
out
by
States,
cities, counties, schooJL distrietsfrf.
city debt^anOM%-—ete;rrrr^ll--p§ftsbl the country,
be
The offering is made only hy the Prospectus.
R." by
total
a
money,
6o,000 Shares
&
of
he said,
invested
&
has
mainly in Govern¬
ment securities.
Funds in "R.
Fruehauf Trailer
departments include:
Gas, $811,000; electric, $940,000,
An addi¬
Company
and water, $2,002,000.
tional
$1,862,080 is earmarked
operating expense for "R. &
for
R." this year.
Ay2% Convertible Preferred Stock
Anticipated revenues and ex¬
penditures by departments this
year
follow: Electric, $6,356,453
revenue and $5,436,576 deductions,
leaving $919,877 net profit; gas,
$6,401,267 revenue and $4,846,808
deductions, leaving $1,554,459 net
Par value
profit; water, $1,924,391 revenue
and $1,371,832 deductions, leaving
$552,559 net profit.
it
will
be
unable
to
carry
$100 per share
Price $103 per
,
Share
(plus accrued dividends from March 1, 1944, to date of delivery)
Should the division find that
on
construction scheduled for 1944,
Major
Allen
aside for
said
in
set
construction purposes
will be used for
bonds
money
calling electric
advance
of maturity.
War Production Board priorities
Copies of the Prospectus may be obtained in any State from such of the several Underwriter including
the undersigned, as may lawfully offer the securities in such State.
must be obtained for most ma¬
terial used by the division.
Mayor Walter Chandler has an¬
that $500,000 would be
"contributed" by the division to
nounced
the
city
reduction
rate of
treasury and a 15-cent
made in Memphis' tax
$2.10 on each $100 valua¬
tion.
In
addition to this contribu¬
tion, the (division lias, budgeted
LEHMAN BROTHERS
March 16,1944
legal
issues,
enue,
This money has been
renewals and replace¬
ment
Ohio,
Turnpike Revenue Bonds of the
vania,
of
the
the State of Maryland, the
of the
city climaxed protracted
considers
Bonds of the Commonwealth of
plan for financial reorganization
recen^ adoption
Mitchell
most
interesting examples
of self-liquidating public enter¬
prises are the Bridge Revenue
This advertisement appears as a matter of record only and is under no circumstances to
construed as an offering of these securities for sale, or as-a solicitation of an offer to
buy any of such securities.
first
prepared
the
get^a^de^from^ac^
ments have set aside funds for de¬
the
trust
or
cumulated net
preciation.
public
broughtjput in
indenture
agreement to
counsel
the
of
bond issues
modern
ties.
bond
as
majority
sion
.Each year since the city began
operation of the utilities, depart¬
Mit¬
formed in January 1929
by Robie L. Mitchell, senior part¬
ner, and Chester B. Masslich, has
have
earnings, the divi-'
plans to end the year with
surplus, net profits of $379,569.
&
was
>
interest
000 of net
13.4%.
Bosworth,
nicipal
1935,
member
maturities.
of
the
principal construction
municipal
payments
several
years bridge over the Ohio River.
although it continued to pay
Among the other issues Car¬
city
debt
loans
Commission,
will
a
and
bank
overdue
vised the financial affairs of the
sinking
30, 1938, this
funded debt was $541,299,157, whereas on Feb. "1, 1944,
including the new bonds, it was
emphasizes
be
of
ment
to the accretion of the
June
June,
senior
recent
funds.
On
is
revenue
refunding provided for in
plan
recently
adopted
by
the
municipal government and
authorized by the Quebec Legis¬
lature.
Purpose of the current
offering is to provide for pay¬
cials and the Quebec Municipal
net
since
the
tatives
it gives effect
V
has been associated with the firm
debt
comparison of the change in the
as
•
description of the outstand¬
bond issues of the city of ;
Philadelphia.
The study shows John
Pershing Partner
the principal amount of each issue,
In Masslich & Mitchell
coupon rates, maturities, sinking
fund holdings, form of bond and Municipal Counsel
legal opinion. Requests for copies
Admission of John Pershing as
of the study should be addressed a partner was announced March
to Yarnall & Co., 1528 Walnut
St., 10 by Masslich & Mitchell, one of
the
Philadelphia 2, Pa.
outstanding municipal law
firms in the country. Mr. Pershing
a
funded
debt,
16
of additional bonds held in
000
city's sinking and working
capital funds will he cancelled.
,
Ed C. Wright of St.
extended from 9 to
Approximately $51,000,-
the
■
the fiscal year, the State has been
able to eliminate borrowing
in
be
years.
will furnish upon request a copy
of their special circular contain¬
ing
ing
3M% thereafter. Ma
will
Philadelphia,
.
steady retirement of bonds.
funds
After construction
been used or
and
The issuance of term
discontinued in 1917,
was
Yarnall
Montreal, Que., Default-Cure
refunding plan, involving
The State's authorized but un¬ Debentures Offered
approximately $9,000,000 obliga¬
g®,
bonds
now;
amount
to
tions, promulgated by the city of issued
A Canadian syndicate of banks
Coral Gables in 1940.
The high $407,570,000, these authorizations and investment
houses, headed by
court granted a review of the case being for grade crossings elimina¬ the
Dominion
Securities
Corp.,
in November, 1943, following the tion,
highways
and
parkways, and L. G. Beaubien & Co., made
decision
of
the
Circuit
Court, and housing.
Each authorization public offering last week of $48,which held that the plan was not has been approved by the people 433,500 series A
refunding deben¬
filed in good faith and not fair of the State through amendments
tures, with coupon rates ranging
to the Constitution.
to opposing creditors.
from 2V4% to 31/4%> at a price of
Because
of
the
accumulated par.
This financing is being car¬
Ajnong
the
creditors who
surplus, as well as the change in ried out as part of the over-all
opposed the 1940 program were
debt
A grand total of $1,751,000 in
turity.
bonds
to
Philadelphia Issues Tabulated
WATLING, LERCHEN fc? CO.
Thursday, March 16,
•
1944
1114
towns, and villages, the whole¬
sale destruction of property, the
Proposed
Some Factors In The
the
Post-War International Pattern
1112)
(Continued from page
of bal¬
and suc¬
business, and that business
ernment has lost all sense
cessful
has
taxation
between
ance
its
lost
ditures
of proportion
and unwise expen¬
sense
between wise
because
government
is
to be paying such a
large part of the expense; that
never
before have the
people
been so divided into classes as
supposed
good
America
ever
in
build
ing highest praise?
do
to
off all
pass
a
party to an
military domination of the
all these as achievements deserv¬
not
must
attempted
world.
The propagandists for the "un¬
ion
now"
plan, are trying to
become
and children—do we not now hail
will
Nor
it.
sentiment
a
by
therefor
how interested Britain
always has been in our
telling
us
and others as be¬ is and
matter of retalia¬ welfare, prosperity, and security;
1870, and to have been basic to tion on our part. We as well as that she has been during. the
all codes since drawn covering
the enemy have been aggressors, whole history of the Republic a
the laws and customs of war. This
both in the last war and in this. sort of guardian angel watching
advanced code prohibited the use
Furthermore, that one nation vi¬ over us; and that during the cen¬
of poison in wells, or food, or
olates a law is no proper justifi¬ tury and a half of our national
arms; forbade inflicting of addi¬
cation for another nation to do existence we have been the hap¬
the
in
wounds
tional
fly.at one another's throats.
But I need name no more—
ers
of
though there are many—of the
things that now hamper us, and
will do so more and more, in our
upon
these operations
ing
disabled
a
so.
declared that command¬
enemy;
ready and of a temper to
now,
France and Germany
Franco-Prussian War of
including
aged, the infirm, the women
It
of
armies
killing,
indiscriminate
now" has far more ill than
should, as a rule, give notice
bombardments "so that non-
the
back to sound think¬
ing and right living, to wise na¬
tional growth and to the upbuild¬
ing of the prosperity and wel¬
fare of all of the people.
Yet I
wish clearly to make the point
effort to get
bombardment
Remember
"Two
the
dictum:
old
right."
do not make a
Our love for peace, our
actual
record
combatants, and especially women
and children may be removed be¬
fore
merely a
wrongs
boasted
for
peace,
for
concern
should have led us
helpless beneficiaries
British land and sea power.
less and
our
humanity,
to seek some
is not fact. We
and prospered in
spite of, not because
arrangement with our enemies to
it stipulated the sanc¬ curtail barbarous methods, rather
tity of protective flags or signals than to try to outdo them. There
for buildings containing works of
is, moreover, the strongest reason
art, scientific museums, astron¬ for believing that the General
omical observatories, precious li¬ Staff of
every first class power
of Britain's
power.
com¬
mences;"
grown
There have been
Great
pean powers: We
either
the trade
have
occasions when
and Great Brit¬
ain have risen to heights of for¬
bearance and tolerance and peace¬
the United States
intent, one towards the other,
unequalled in the history of great
ful
so
that they might be in the world, including our own, nations. We may recall to our
preserved; and so on with like spent their full effort between minds two of them—the ■ Rushthat, unless corrected, these mat¬ protection for non-combatant life World Wars first and sqcond in Bagot Agreement for the limita¬
and non-military private prop¬
ters I have touched upon will not
trying to develop methods and tion of armaments on the Great
only retard, if not make impos¬ erty. This was in 1863, in a code weapons that would wipe out Lakes and the arbitration of the
—of our own volition.
Holland,peoples,
not
merely
destroy questions involved in the British
sible, our national recovery, but
an unsympathetic British author¬
and
outfitting
of
armies arid navies.
All planned construction
are likely to stand as a bulwark
against our successfully meeting ity, characterizes the rules "as for a war of extermination. They Confederate raiders. We have also
certainly more severe (that is, will be at it again after this war, settled by equally peaceful means
any
great international burden,
our northern and Alaskan
boun¬
against the belligerents) than the unless curbed.
after the war.
rules which would be generally
„If we are to be the savior of
Having in mind the day by dary between Canada and our¬
enforced in a war between two
selves.
We began this peaceful
the world we must come to our
day plan and effort to instill hate
in the hearts of the peoples of course under the Jay Treaty of
task with the spirit and the vir¬ independent states."
The Hague Conferences of 1899
1794. There was another incident,
tues of a savior.
one
warring group against the
and of 1907 embodied in formal
peoples of other warring groups; a gesture, with Dewey at Manila
International Handicaps
multi
partite
conventions,
all having in mind the suffering, the Bay, but in appraising this we
these principles, extending them
We
may
now
say something
indignities,
the
sickness,
the should not forget the Casablanca
in some instances, as for example,
about the international moral fi¬
woes
and misery, the starvation incident between Germany and
ber that the world has for use in by specifically prohibiting in the which the one side has inflicted England, which showed their re¬
First Conference the dropping of
on
the other; remembering the lationship.
coming to this task of world sal¬
But there is
another side to
projectiles and explosives from loss of husbands, sons, and kin,
vation.
We will sketch it
We may say to begin with that balloons, and by inferentially do¬ and the grief and anger this has the picture.
out briefly.
the world has gone back a half a ing so in the Second Conference. built in the hearts of all peoples
particularly when after
War, our ships and
commerce, driven from the seasi
by the Confederate raiders, built,
and fitted out in British* ship-'
yards, Britain seized the shippings
of the world while we staggered
forward again in an effort to re-gain pur place. Nor may we for¬
get that in the present British'
ning, and
the
Civil
War Parliament
braries,
of inter¬
of war,
The
Convention
and Customs
on
the
Laws
of War on Land of
all
—having
this
may
*
be
this in mind, and
the worst curse of
unhistorically maudlin.
not
World Organization
We
touch one point
as necessary "pending the
establishment of a wider and per¬
firmed
manent
system
of
general
se¬
curity."
the
In
it
four signa¬
Moscow Declaration,
asserted
was
by the
tories:
"4.. That
Us
they recognize the
necessity of establishing at the
earliest practicable date a gen¬
eral international organization,
based on the principle of the
sovereign equality of all peaceloving states, and open to mem¬
bership by all such states, large
and small, for the maintenance
international
of
and
peace
se¬
curity."
This
of
signed by Secretaries'
not by the heads of
some point may
was
State,
Sometime
States.
British Guardianship Over
now
may
only about a world organization.
In the eighth paragraph of the
Atlantic
Charter, the disarma¬
ment
of certain nations is af¬
.
national relations in time
already they are
about us and our
possible interference with un¬
hampered British trade after the
war, nothwithstanding the enor¬
mous vital contributions we are
making to her under lend-lease.
Let us be just to Britain, but
-
millenium in its conduct
rivalries that
since the begin-*
on
gone
not forget
may
of complaining
Of course, this
have
ports
in
1903 by
Britain and other Euro¬
Venezuelan
be made of that fact.
In appraising this guardianship
In the three power Declaration
not see how dif¬
1907, had provisions: Forbidding ficult it will be, after the war we are entitled to remember that of Teheran—signed by President
we
tottered
forward after Roosevelt, Premier Stalin, and
the
use
of poison or poisoned is over, for the nations to settle as
for .this than our own.
Minister
Churchill,
the
weapons; the killing or wound¬ down
to
rebuilding the world Yorktown, Britain refused to sur¬ Prime
Lessening the Horrors of War
ing treacherously of individuals even on the basis of brotherly render forts and territory coming most powerful triumvirate in all
Three and a quarter centuries belonging to the hostile nation or love?; Yet, if the rebuilding is to us under the treaty of peace, history—the post-war setup was
driving us to the threat of war stated with greatest caution—in¬
ago the great Dutch publicist, dipon any other basis than kindness
army; the killing or wounding of
Imnatr-theelegiahr^nnd literateu^ ap pn#amy
'having lain dnwr> an^hgotherlv. Jove^ it will be measurably to obtain our rights; deed the whole Declaration is a
Hugo Grotius, brought forth his his arms, or having no longer merely another chapter in the so with the harassment Of Amer¬
work De Jure Belli et Pacis. This
means
of defense,
had surren¬ rule of force and hate, a pre¬ ican commerce almost to destruc¬ tion, Here they said:
work has deeply influenced the dered at discretion; it forbade apy cursor
for
another
war.
Our tion during the period of British
"Emerging from these cor*;
Orders in Council and the French
conduct of nations at war from rule or practice that no quarter
dial conferences we look with
peace will be but another armis¬
his time on until the opening of would be given, and likewise the
decrees, including the Berlin and
confidence to the day when all
tice of Versailles.
Milan decrees; so when Britain,
World War I. Grotius stated these employment of arms, projectiles,
peoples of the world may live
Union Now
still clinging to our territory, in¬
reasons for writing the treatise:
or
material calculated to cause
free lives,
untouched by ty*
cited the Indians on our borders
"I saw prevailing throughout unnecessary
There is one matter we might
suffering;
enemy
ranny, and according to their,
to all the horrors and savagery
the Christian world a license in
property was not to be destroyed mention here as an incident to
varying desires and their own
making war of which even bar¬ or seized unless such destruction the post-war world—the propa¬ of Indian warfare against our de¬
consciences."
/
fenseless settlers, fired upon our
barous
nations
would
have or seizure be imperatively de¬
ganda
now
waging
for
our
A number of interesting ques¬
been
ashamed; recourse being manded
by
the
necessities
of "union now" with Britain in a vessels, stopped American ves¬ tions "emerge," like the negotia¬
sels on the high seas, impressed
had to arms for slight reasons
war; family honor and rights, the world super-state.
tors, from these various state¬
or
no
seamen,
and
then
reason; and when arms lives
of
Some facts should be in mind. American
persons,
and private
ments and others made by one or
were once taken up, all rever¬
property, as well as religious con¬ For hundreds of years, western waged with us the War of 1812; more of the signers, but we shall
with
her
ence for divine and human law
challenge
with
victions and practices, were to be Europe has feared and sought to so
consider now but one—that which
was
thrown away, just as if respected; and pillage was for¬ make herself secure against the France of the Monroe Doctrine of
declares for "a general interna¬
men
were thenceforth author¬
they
now
erroneously
This
was
one which
mally forbidden.
This provision Russian Bear.
tional organization* based on the
claim
ized to commit all crimes with¬ must obviously be taken as call¬
authorship, in, La Plata
prime consideration of the great
principle of the sovereign equal¬
out restraint."
ing for the sparing of women and plan of Henry IV conceived in the (1846) With armed force; so we ity of all peace-loving states, and
u p o n
From the time of Grotius until children
considerations brain of Elizabeth of England. may remember when, the North open to membership by all such
South
being locked in a
World War I, men had consciously pointed out by Grotius nearly 300 This fear was one of the causes and
states, large and small. ..."
struggle,
Britain joined
tried ever to lessen the ills of years before. It was also provided that wrecked the Holy Alliance. death
The principle of the equality of
with
France
and
Spain in an
that:
"In
With Germany defeated and
sieges and bombard¬
a
war,
and
especially to relieve
sovereign states "large and small"
non-combatants—old men, wom¬ ments all necessary steps must be prostrate France, there will be armed invasion and occupation of
is as old as the modern "society
en,
and children, the sick and taken to spare, as far as possible, nothing between Russia and the Mexico, contrary to the Monroe
of nations," now renamed to meet
the wounded—from the ravages buildings
The United Kingdom Doctrine, though, be" it said to her
dedicated to religion, Atlantic.
the spirit of the times, "the com¬
of war.
Nations had sought to art, science, or charitable pur¬ will be without her usual Euro¬ credit, Britain retired from this
venture
when
the
imperialistic munity of nations."
find ways to restrict as much as poses, historic monuments, hospi¬ pean
protection
worked
o ut
The principle was announced
aims behind it became clear; we
might be the theater of war, and tals, and places where the sick through alliances and balance of
120 years ago by Chief Justice
may remember, too, when during
to recognize and protect neutrals
and wounded are collected, pro¬
further that no
nation has to bear a greater blame
and
may
we
say
the
Hague
Second
Conference
the war, can we
.
power
in their normal trade and travel.
War
was
should
held
be
a
curse
whose evils
might
be
done,
within the
smallest
limits and affecting the fewest
kept,
number.
In this
ity for
tional
the
a
so far
as
■,
great march of human¬
higher level of interna¬
life
and
peoples of
great country of
relations
the
ours
among
earth, this
took a lead¬
not used at. the
time for military purposes," all
which
were
to
be • properly
vided
they
marked
are
and
notified
to
the
enemy.
This summary survey has been
given in order that you might
gather, more or less clearly, the
advance
which
humanity
had
made toward curtailing the hor¬
rors and suffering of war.
arrangements.
She
now
same
struggle of our Civil
War, Britain permitted the out¬
fitting of Confederate raiders to
beyond the At¬
lantic.
It would hardly do to
form
an
open
alliance against
that
Russia; and both Britain and our¬
selves should be wary of an alli¬
such
an
that
our
Minister, Charles Francis
ance
from
with her.
conceived of a
which,
nations
than
an
So the device is
"union" of states,
however,
together
would
more
tie- the
was
.
The first body of rules ever is¬
"No
is
principle of general law
universally
more
acknowl¬
edged than the perfect equality
of nations, Russia and Geneva
have equal rights.
It results
from this equality that no one
forced to point out
Russell, the British For¬
eign^ Secretary, "It would be su¬
Earl
cap
me to point out to
Lordship that this is war;"
rior may we forget the long dis¬
putes
over
our
rights in the
securely perfluous in
alliance and be a greater
threat to Russia.
Adams,
to
rightfully impose a rule on
Each
another.
your
But
such
an
alliance would
Northeastern
Coast
fisheries,
lead, and such a "union" will
which more than once brought us
sued by any. power for the con¬
Now let
us
be
unflinchingly lead, sooner or later, to a coun¬
to the brink of war because of
trol and guidance of its armies
honest with ourselves and then ter-alliance by the other nations
measures
of
exclusion
visited
that would challenge the power
in the field, was that prepared
ask whether there is any one es¬
against us by the Canadian Gov¬
by Dr. Francis Lieber and pro¬ sential thing that was .forbidden of such a "union," so meaning
ernment; we may recall the Brit¬
mulgated by Lincoln in 1863 for by these ameliorating codes that either constant war for suprem¬
ish boundary dispute with Ven¬
the use of the Union Armies in has not been
practiced in this acy or a war of absolute con¬
ezuela
when
we
again had to
the Civil War.
It went beyond
present war, and the most of them quest by the one or the other and
threaten in order to bring about
the usual war practice of nations
in World War I.
The things over a consequent enslavement of the
the
observance
of " the Monroe
in protecting the weak and inno¬
Peace without liberty
which we professed horror at the conquered.
Doctrine, and so also in the mat¬
cent.
These rules
are
said
to
beginning of the war—the bomb¬ spells a stalemate in civilization
ter
of the Pacific
blockade of
have been largely followed by the ardment from the air of cities, and spiritual development. "Union
ing and glorious part.
Marshall in these words:
extent and such manner,
seeks- aid
legislates
for
itself, but its legislation can ■>
operate
on
itself ; alone.
A
right, then, which is vested in *('.
all by the consent of all can be
divested only by consent—as no
Our Backsliding
.;.
nation can prescribe a rule for
others, none can make a law of
nations."
In
nounced
that
ing
are
.
statement
this
a
number
basic to
world
status
our
also
are
an¬
principles
whole exist¬
of
and
the status
proposed in the post-war pattern.
We
will use only the dictum:
Volume
"Russia
Geneva
and
have
equal
that is
cause
No
Applied to a world organization
a peace
alternative
an
rights."
;
1115
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4264
159
permanent
to
that is clearly
another war.
will come
peace
jungle where in cataclysms every
beast fights to the death for his
what to do.,
Members
life.
own
to try to tell you
what to think or
"
The men who x Are we Christians? We act like Bar, this future of ours is a mat¬
ter of concern for every citizen,
,,
their families pagans.
equality
of
all
peace-loving
for the task that lies ahead will
States
Peaceful Adjustment of Inter¬
large and small," the want peace now and hereafter;
rest with a heavy hand upon each
they of America are not primarily
national Disputes
principle means that, in such an
of us.
But the burden is yours,
organization the vote of Panama concerned with questions of em¬
One other element I will name, each of you, and yours not only,
would
equal
the vote of the pire holding or empire building.
that is, the peaceful adjustment of but the burden of your sons and
United States; the vote of Salva¬
Along with this peace should international disputes.
your
daughters, your grandsons
dor would equal the vote of Eng¬ come a will to increase the spir¬
We ourselves have a great rec¬ and
granddaughters, even for gen¬
land, and
the vote of Haiti, ituality of the earth's peoples and ord for the adjustment of our in¬
erations to come.
For we may not
the
vote
of
Russia—that
is, a building up of a true spirit of
ternational disputes by peaceful waste
away our strength, our civic
this
would have been
true of the brotherhood of man by treat¬
means,
instead of by war and virtue, our inheritance of free in¬
Russia prior to
her action on ing all men as brothers, not as forceful
compulsion.
No nation stitutions, and recover them in a
the
2nd of this month, when enemies nor as menials or inferior
has had a more effective or glori¬ day.
They were built by the gen¬
Real peace ous past in developing the sys¬
apparently she so divided her¬ orders of creation.
erations of illustrious, patriotic an¬
self up as to give her 16 or 17 will never come till the Gospel of
tem than ourselves.
We cannot cestors
who preceded us;
they
votes.
of
which is based
find" Saves loney
unless this be done.
the "sovereign
on
Electronic "iaster
;xc. f
Los Angeles
.
the
of
fighting
are
and
,
& Labor Man Hours
i
.
.
.
the
If
shall be
of Russia
vote
increased by this new move,
then
Russia will have 16 times as many
votes
as
times
as
we
nearly three
Britain and her
have,
many as
dependencies, within one vote of
all the countries in continental
and
America,
Latin
within
10
of Europe
In any con¬
ference
with
only
the United
States and the British Empire,
Russia will outvote us more than
of
votes
all
combined
to
two
as
the
rest
of 1929.
and in a conference
one,
just with ourselves, 16 to one, as
hearts
men,
shall yield obedience to
rules
Christ
until we
the
represented—Rus¬
one.
In the new
arrangement there will be 59
nations, out of which we shall
have one vote, and Russia 16 or 17.
44 nations are
sia
counting
Council
The
as
Europe
for
set
is made up of 11 coun¬
R. R, A.)
Russia,
besides
Europe
of
tries
up
(U. N*
tinder the Food Agreement
in addition Brazil, Canada,
the United States.
Russia,
the new setup, will out¬
vote
all
the
others combined.
Russia will likewise dominate the
Committee on Supplies, and the
Committee on Financial Control.
and
and
under
.In any
final permanent arrange¬
will no doubt be
effort
ment
made, under some such
the League of Nations
our
be
must
saved
from
painstaking, laborious process sub¬
ject to human error," Mr. Ballantyne explained.. "It was there¬
fore decided
that many advan¬
destruction
by ourselves, then rebuilt to even
great
from the statutes of
substantial savings effected
Father,
the
had gone
.
James
"Months
development work followed,
finally resulted in the per¬
fection of a special electronic in¬
strument
employing
126
tubes
which can 'think,' calibrate, cal¬
culate, and record dial readings
many times faster than any human
being—all without danger of er¬
and
and
again, arbitrated boun¬
over
dary
disputes—that ever-fruitful
brated.
loftiest
the
with
patriotism,
a
World Disarmament
to¬
"Not
gether in one great brotherhood
in a reign of mutual patience
forbearance, and charity, in a
reign of peace to which we shal]
lead all others by the persuasior
of our own righteous example.
'master
weld
shall
the
earth
whole
This, gentlemen, is thedestiny
our America.
May God give u<
for it, and
the moral power to achieve it.
of
citizens strength to live
Steady and substantial
growth
insofar
as
not
for
a
selfish design fathered
by an alien
dom of the mass
is always greater
than the thinking
ever
The .wis¬
minority.
of the few, how¬
;Certain
tioned
as
things
be
may
the sine qua non's
men¬
England Public Service Company
according to a detailed circular on
disease:
Peace Based on
Justice
We must have a peace
justice rather than
,
based on
might; that is,
terms that
will leave all peoples willing if
not anxious to carry them out, be¬
it must be a peace upon
our
preserve
or
system of society
let
containing
the
first
/3
arti¬
cles in the series they have been
of deliberation,
of waging
imposing sanctions. We
must bring to bear in the solution
of matters of world concern, that
moral force of the world of which
fore
tion for
organiza¬
purposes
but not for the purpose
wars
so
and
our
own
our
moral
force
force
which
in
is
indeed
all
the
no
moral
world
voice the warring
to
nations
situation
in
selves is
which
one
force
whose
are
as
yet willing to hearken.
We are
living under the law of the
now
you give your approval or
disapproval of any plan that may
be proposed; if I shall have left
you with the knowledge that the
once
great; we speak now only as
force may sustain us.
this
electronic
saving man¬
now
money
during
war
effort and to prepare to
help create a higher standard of
living when victory is won."
>
■"
>
-
.
,
Attractive Situations
Ward & Co., 120 Broadway, New
York City, have prepared circu¬
lars
on
several
situations
which
offer
attractive
possi¬
currently
bilities, the firm believes. Copies
of these circulars, on the follow¬
ing issues, may be had from Ward
& Co. upon request:
Du
Laboratories
Mont
"A";
Merchants
Distilling;
CroweliCollier Publishing; P. R. Mallory;
General
Instrument; Long Bell
Lumber Co.; Great American In¬
dustries; Mid-Continent Airlines;
Richardson; Hartford Empire Co.;
Central Electric & Tel.; Massa¬
chusetts Power & Light $2 pre¬
ferred.
*
;
and
world
in
was
brute
There
left
thought
As the situation stands
of America have lost,
we
affairs—a
righly
Wilson
highly.
very
/
could ruin
-
government, even our civil¬ running in the "Financial Chron¬
ization, all depending upon how icle." Copies of this booklet may
the urges and passions shall be be had upon request by writing
directed and used; if I shall have to Mark Merit, in care of Schen¬
Distillers Corporation,
350
left you with the determination ley
to know more about all this be¬ Fifth Avenue, New. York 1, N. Y
of any today,
the world
permanent solution of
Force
We must have a world
President
be. -•
able the few may
Moral
could
which
volved
peace.
and
ernment
of the "Utility Group''
have increased the speculative at¬
traction of both the Prior Lien
and Plain Preferred stocks of New
is
for the Gov¬
the war emer¬
promise
applica¬
tions in industry after the war,"
Mr. Ballantyne pointed out.
"It
represents one of the many ways
in which research, engineering,
and production are all working in
conjunction at Philco to further
power
in earnings
—<
thinking
design.
It
calls for common council, not for
dictatorial decree; it calls for a
united purpose of a united people,
only
mind'
gency, but it contains the
of important peacetime
the
Interesting Situation
-
solved by wishful
The
of
means
single allegiance, undivided, un¬
shared, undefiled, for the Con¬
stitution under which we live—sc
in effect runs the oath of office of
my abilities are con¬
for a few inter¬
To bring us to our peace we cerned, for the field of inquiry the
situation
prepared
by Ira
ested and revolutionary bureau¬
should have total, not partial, was very broad and none I have Haupt & Co., Ill Broadway, Newcrats.
It is the problem of every
world disarmament as the Atlan¬ namrid might wisely go unmen- York City, members of the New
industry, of every farm, of every
tic Charter suggests.
The reasons tioned.
But if I shall have left York Stock Exchange and other
profession, of every household, of
may be given in a sentence.
You you with the conviction that the leading national exchanges. Copies
every man
and woman of the
will
no
more
have
a
world mattep is too complicated to be of this interesting circular may be
nation, for if the present plans
society of law and order by tak¬ settled by some rule o' thumb, or had from Ira Haupt & Co. upon
shall carry through they will want
ing away the guns from a part of by some fireside chat, or by the request.
' •
our money to pay their bills, and
the gang and letting the others ipse dixit of some ambitious, in¬
want us and our sons to police
tote theirs, than you will by hav¬ terested, would-be world leader; if
the world.
The problem is not
Available On Request
ing all: of them tote all the guns I shall have left you with the con¬
insoluble, taken over the years.
Schenley Distillers Corporation
they can carry—and., all history viction that great issues and basic
With courage and unselfishness
shows. this /last
will not bring human urges and passions are in¬ have prepared an attractive book¬
we shall work it out.
But it will
by; revolutionary
research
intensive
of
and
.
citizens, "and not
or
very
Jf the
second provides a
mechanically contin¬
uously driving the dial of the fre¬
source of war.
We have so settled
quency
meter
and
electrically
many scores of claims of our citi¬
generating a sharp pulse every
zens for injuries suffered at the
time
the
frequency
meter
is
hands
of
other
countries.
We each of you who grace the Bar oi
bor as thyself."
turned through "zero beat" with
Our hearts the standard
When
this time comes, then have so adjusted questions touch¬ this Commonwealth.
signal. This standard
shall the world have peace from ing rights of fishery in coastal and hands must be clean of alV
signal, incidentally,
is
derived
arms,
and
that
higher peace waters recognized and secured to foreign isms and alien political from WWV, the United States
us by treaty, as well as questions
cults.
The Constitution and its
promised by Him Who alone can
Government standard frequency
institutions
must
be oui
give it, for He said: "Peace I leave touching invasions of our sov¬ free
station in Washington, which in
with you, my peace I give unto ereignty, our rights as neutrals, ensign.
turn is calibrated against the stars.
For America has a destiny—a
you.
.
Let not your heart be our rights as a belligerent, our
The third unit of the calibrator
troubled, neither let it be afraid." rights and duties on the high seas, destiny to conquer the world—not automatically records and tabu¬
the rightfulness of the decisions by force of arms, not by purchase
Such a peace would eliminate
lates the dial reading.
of our Supreme Court.
We have and favor, for these conquests
at once all armed force, because a
For the purposes of this elec¬
even
arbitrated the rightfulness wash away, but by high purpose
rule of force is always a rule of
tronic "master mind," it was nec¬
of acts of war committed against
by unselfish effort, by uplifting
hate on both sides, and peace will
us.
Furthermore, where we have achievement,
by
a
course
o:' essary to develop a special type
never
be born
of hatel
This
(FM)
been convinced
that judgments Christian living; a conquest thav of frequency, modulation
would
dispose of international
rendered by arbitral courts in our shall leave every nation free to detector, because the problem of
police forces, occupying armies,
favor have gone beyond the de¬ move out to its own destiny; a exact calibration is far more com¬
arid all the impossible tasks inci¬
plex than ordinary broadcast de¬
mands of justice and equity, we conquest that shall bring, through
dent to alien domination.
Since
tection. In this instance, a form
have refunded the excess to the the workings of our own example
war lords know only armies and
of frequency modulation, highly
injured country. The record is a the blessings of freedom and lib¬
guns
and brute force, none of
glorious one.
It has helped to erty to every people, without re¬ involved as compared with ordin¬
them of the victor nations would
ary broadcasting, has been put to
make of us a heretofore peaceful straint or imposition or compul¬
like this, but we their peoples
work to perform a precision job.
nation.
It has been a strong bul¬ sion from us;
a
conquest that
after the Christ
And
to
pattern as
Assembly
and Council, to give to a few great
Powers the control of the organ¬
ization.
But, for rather obvious would welcome it as our redemp¬
wark against our shedding the
reasons, that refinement will not
tion-^from bloodshed.
For the
blood of weaker nations and of
Pe^gtvem^uUfUst^€4r-=4¥e~m nst
people love the paths-of peace and
our own sons.
Yet in spite of this
hot discourage or throw suspicion
quiet and the orderly progress of
record of a hundred and fifty
in the minds of the small Powers.
an
ever-increasing culture and
It is not necessary to point out
years, in spite of this custom or
advancing civilization and a con¬
tradition we had built, I recall no
to you members of the Bar just
stantly growing spirituality.
announcement of any effort so
what could happen to us in any
A solution by a rule of brute
world organization where we are
peaceably to adjust the difficult
force would discard all the wis¬
ties that lie behind the present
one
out of 59 in all matters of
dom of the ages and take us clear
holocaust.
We have lost, at least
voting; nor how hazardous our
back to the dawn of,civilization.
for the moment, the temper to live
situation could be if the organiza¬
Surely we have grown too much at
tion should put us by its votes"
peace with our brethren of the
through the generations to make world, our fellow Children of God.
under any obligation as to mili¬
this the best answer we can now
But I must close.
tary expeditions against recalci¬
make.
Surely we shall not ti;y to
trant members or as the financial
I have touched tonight upon
live through again the whole his¬
aid and assistance to the indigents.
tory of human kind, again using many matters and many incidents
What Might Be Done
I have perhaps
all the devices of armed peace and principles.
left you with few concrete, defi¬
Someone will ask: What may we and selfish power that have failed
nite concepts or
conclusions in
from the beginning.
do to solve this situation?
your minds.
This was inevitable,
-*
First, this is a problem for all
not be
be gained and
would
tages
task could be done electronically.
commandment drawn
greater perfection by those who
Israel's Lawfollow us.
We can do it if we
Giver: "Thou shalt love the Lord
shall have the will to do it; our
thy God with all thy heart, and
children can do it if we shall in¬
with all thy soul, and with all thy
spire them to its accomplishment
mind.
This is the first and great arbitration of international diffi¬
We must come to the task of ror."
commandment.
And the second
culties,
instead
of
settlement decision that now faces us, with
Essentially the Philco calibrator
is like unto it: Thou shalt love thy thereof
by war.
From then till the
purest
motives.
Avarice, consists of three parts. The first
neighbor as thyself. On these two now we have so worked out,
greed, selfish ambition, the thirsl supplies a source of standard fre¬
commandments hang all the lav/
peaceably, literally hundreds of for power and place and do¬
and the prophets."
So spake the cases that were possible causes of minion, must all be thrust from quencies against which the Signal
Corps frequency meter is cali¬
Master to the quibbling Pharisee. armed conflict.
We have, over our hearts.
We must come with
the
rephrased
stated.
the principle: "If ye fulfil the
In the Council created by the royal law according to the scrip¬
Food Agreement (U. N. R. R. A.), ture, Thou shalt love they neigh¬
1
achievements
tonight—they are too numerous;
but this much may be said:
By the first treaty (Jay Treaty,
1794) between ourselves and the
Mother Country after our treaty
of peace, we set up the system of
catalogue
even
(Continued from first page)
always been necessary to do the
work of calibrating
by hand, a
must
be
considered
without heat
sanship,
we
find
our¬
of dire distress, and
or
upon
and
rancor
or
solved
parti¬
the utmost wisdom
highest patriotism—if I have
been able to do this, my purpose
and
in
Guaranty
York
tion
offers
Trust Co.
of New
an
attractive situa¬
according to
a
bulletin
pre¬
pared by Laird, Bissell & Meeds,
120 Broadway, New York City,
members of the New York Stock
Exchange.
Copies of this interest¬
shall be fully
ing bulletin may be had upon re¬
It has not been my purpose
quest from Laird, Bissell & Meeds
speaking to
met.
Guaranty Trust of N. Y.
Situation Attractive
you
Pittsburgh Rys. Look Good
The
current
situation in
Pitts¬
burgh Railways System, particu¬
larly certain of the underlying
bonds, offers attractive possibili¬
ties for appreciation, according to
a study prepared by T. J. Feibleman
& Co., 41 Broad St., New
York City.
Copies of this inter¬
esting study and also circulars on
U.
S. Radiator
Corp., Jonas &
Naumburg
Corp., Fashion Park,
Inc., and Oklahoma-Texas Trust,
which
only,
are
may
to
dealers
upon
request
available
be
had
from T. J. Feibleman
& Co.
11
THE
1116
have known." People
Can
They will be no purer, no boats and prefabricated houses. It
sounds
like a topsy-turvy
no wiser, no sillier than
they were yesterday. Human na¬ world ahead.! It's going to be a
ture changes very, very slowly. world of competition, and compe¬
And it is people that make the tition is the essence of free en¬
world in which we live.
It is terprise. Competition is the yeast
people that work and save, that in our daily bread of progress.
buy and sell, that are the em¬ This new competition means that
ployes and the customers of busi¬ the bars are coming down and the
people.
meaner,
Be licked: Walter D. Fuller
(Continued from page
you
don't know
I
are.
of suspend¬
that the
great gong should sound tomor¬
row.
Suppose you should awaken
to find that V Day has come and
that the first round in the battle
of peace is on.
Are you going to
be able to meet the new problems
you are
1091)
one-third of the peace-
whether more than
in either state
ed animation. But suppose
time rubber
consumption. In steel
and oil it will have
capacity giv¬
position. So in
other lines.
In electric
for example, with Boulder,
ing a controlling
many
world we metal items and household fur¬
will still be nishing suppliers will expand into
won't end the
war—it
A Post-War Depression
^Thursday, March 16, 1944
COMMERCIAL' & FINANCIAL CHRONICLE
ness
It
sky is the limit.
and industry.
will
still
be
human
nature
are
into contracts is
and figures it is orders on
it will be disastrous.
power
the
books
implemented
Good intentions not
the road to more want
amidst plenty. And that kind of
a road can lead right straight to
state capitalism this time.
Cer¬
tainly there, will be no delayirig
can
pave
with
further
The sacred cows periments.
dead.
courting disaster.
business looks at purchasing
If
priming ex¬
pump
Pump
priming,
you
remember, was a theory of getting
|
that American purchasing power into the hands
boy to meet girl. Women will
of the public.
With a backlog of
Grand Coulee dams and TVA the
keep on having the babies.
Men industry is accepting the challenge one hundred billion dollars the
Government has a hand on the
Business is tack¬
will put on their pants—as they of the future.
switch of considerable electric en¬
ling the post-war job in the same public obviously won't need pur- ;
always have—one leg at a time.
chasing power or pump priming;
ergy. Other agencies have owner¬
Fundamentals
don't
change. all-out way that it tackled the
of sales and markets and compe¬
ship in farm lands and banking Business will be entirely a matter war production job. And it can They will need jobs.. And if it is
tition? Are you going to be in the
left up to the government to pro¬
institutions.
of an incentive to buy as well as succeed as gloriously.
big battle for business or be as
It
may
surprise you, too, to
The handwriting is on the wall vide some form of relief, the pat¬
to sell.
A dollar will go only so
unprepared as. we were at Pearl
know that the largest publishing
—those who survive in the post¬ tern the next time, well may be
Harbor? Are you ready?
far, whether it is pre-war or post¬
house in the world is not Curtis,
employment in -, the
war
world will deserve to live productive
war.
Everyone will want a fair¬
And, gentlemen, that is indeed
it is not Life and it is not any
plants built with 16 billion dollars
a serious question.
er
share of the fruits of our and grow and prosper because
XJpon the way
of the people's money. The temp¬
other than the U. S. Government.
that the business men in America
American civilization.
And only they will have done the necessary,
Today the Government prints 441 those who earn it will get it. Men sound sales-planning job and then tation may be too great for any
answer it depends the future of
to. resist
if the
carried it through. They will have administration
this nation. That is not an exag¬ publications, of which 241 are is¬ will work harder and be more
sued monthly, nine daily, 48 week¬
fully understood that we can pro¬ necessity for relief in some form
geration. I cannot overemphasize
productive for a big pay envelope
The arises, because the selling job is
that all the freedom and liberty ly and Others on other periodical to take home on Saturday nights duce all that we can sell.
bases.
to- turn
purchasing
record of war production proves inadequate
and
democracy
which we are
than for all the promises of se¬
And still there are some people
that. Our bottleneck of tomorrow power into markets and jobs and
fighting to preserve today, on bat¬
curity.
Jobs will be more im¬
who think that posf-war planning
is our sales ability. We can break payrolls.
tle fronts all over the world, can
portant than doles.
Women will
It is pleasant to dream that in
for their businesses is unimpor¬
want
labor saving devices
and it only" with realizing the impor¬
easily be lost when the war is
tant, or that they can do it before their husbands will find ways to tance of marketing and merchan¬ the post-war world all we will
won.
dising and by packing into our have to do is turn a crank, pro¬
I emphasize it because the only they go to bed some night, about
get them.
as they would say their prayers*
the dynamite that will ducing goods, and that the buyers,
But there is one thing that will selling
way that we can save ourselves
somewhat as the Assyrians "will
from
economic disaster—and I They think that the possibility of be different. Competition will be blow open the flood-gates.
state capitalism is just another
Here, in the auto capital of the come down like the wolf on the
mean disaster by default and not
different.
Competition will be
nightmare.
their
pockets
gleaming
world, you know the social sig¬ foM,
by dictation-—after this war is,
tougher.
There will be more of
Some who have looked at these
nificance of
salesmanship.
The with silver and gold," to para¬
first, to realize our dangers and
it, both within each industry and
our
opportunity. Then we can possibilities of state capitalism in for the consumer dollar. Compe¬ auto industry took an invention phrase Lord Byron. But it isn't
the post-war days want to give
that once was called the plaything being realistic. Those who-think
choose wisely.
tition in peacetime will be the
We are teetering, ready to top¬ up in despair, just as some people most vital, aggressive force you of the rich and made it a national they can succeed tomorrow with¬
who stand on the rim of Grand
economic necessity.
Salesmanship out aggressive selling are living
ple one way into state capitalism,
can imagine.
did
that.
Salesmanship and a in a never-never land.
Canyon have a mighty urge to leap
or the other into the most abun¬
;
There not only will be the com¬
overboard. Others, standing there,
constan11 y improved product
Purchasing power is a static
dant
future
that
anyone
can
think how fortunate that nature petition from those who plan to pushed up production of passen¬ thing.
To be complacent about
utilize the new
plant capacity,
imagine. The groups of people
has done the excavation work and
ger cars from a few thousand a purchasing power is like assum¬
Who, vision paradise or hell are
there will be competition from
want to build a skyscraper. Thank
year to a peak of 4,600,000.
ing that there is electricity be¬
simply looking over opposite sides
the new products that this war
It doesn't
You in Detroit have taught the cause there are wires.
of the teeter-totter.
The inferno Heavens, the great majority of has speeded to reality and there
American business men, instead of
world a lesson in selling—a lesson mean anything in either case un-t
is certainly there on one
side.
will be competition from every
wanting to commit economic sui¬
which all American business men til someone throws the switch.
Probably it takes a little less
firm that wants to continue to
cide, are planning to build a
must learn for a successful post¬ When selling throws the switch
imagination to see it and to feel
stay in business*
The consumer
the heat of its fires than to visual¬ stronger, healthier and happier dollar will be the most sought war economy. Just as after the arid turns purchasing power into
nation for freedom-loving men.
first World War, when the auto markets the engine of our econ¬
ize the paradise that is awaiting
after thing in this world.
They see the 3,500 or more
on the other side.
by aggressive selling, omy runs. Markets alone are dy¬
I know of one rather prosperous industry,
licked
a
They are created, they
Let's be as realistic as possible plants which have been financed
depression and lifted namic.
and built by Government as an company that has been in busi¬
today. One simple fact is that to
ness for 100 years.
It has been a America to new heights of pros¬ grow and they die.
opportunity for our economic sys¬
"Markets After the War" the
speed war production the Govern¬
family business.
It has grown perity, Detroit and the auto in¬
tem.
They are thinking of these
ment has invested 16 billion dol¬
dustry will have another oppor¬ study made by the United States
It sold its products in a
new ' and
modern buildings and slowly.
lars in new plants. Another sim¬
tunity when this war ends to show Department of Commerce, dis¬
what can be made in them as a field where there wasn't much how to make
dynamic selling the cussing
purchasing power says
ple fact is that even in the midst
competition and no one aggress¬
to
launch
new
products
servant
of
all
America — the "Granting that human wants are
of wartime prosperity we are a way
ively tried to increase the mar¬
inexhaustible there is also in¬
saviour of our way of life.
shell-shocked people from the 10 speedily. They are thinking of the
ket.
That company is now plan¬
more efficient machinery and how
ertia to change."
*
years of depression. We are verv
Every company faces the tre¬
that will
help to reduce costs. ning for the next 100 years. And
In
this studv the department
gun-shy about depressions. It also
I can tell you its plans are entire¬ mendous job of rebuilding mar¬
is a simple fact that with 16 bil¬ They are thinking of the oppor¬
says, "Even before the war there
ly different.
It isn't going to be kets when peace comes. Markets
were notorious examples of con¬
lion dollars' worth of Government tunity to increase production and
isolationist in business any longer. are intangible, but they are as im¬
expand their markets and sales.
sumer groups who showed a dis¬
plants and equipment the Amer¬
portant as plants arid machinery.
And those thoughts mean jobs And it isn't going to be compla¬
ican people are not going back
The owners Like plants and machinery, you tressing preference for part-time
in the post-war days. They mean cent about selling.
either to apple-selling or leafget them only by planning for empl pyment rather than the mpre
payrolls and purchasing power. have concluded that the firm can't
raking. They are going to have
them and spending money to build jadeqiiahe food, clothing and hous¬
They mean prosperity and plenty live another 10 years unless it
ing which could be bought with a
jobs—either through our system of
And to them.
instead of another depression and does a real selling job.
free enterprise or through a sys¬
full nay envelope.
I imagine that someone may be
state capitalism. They mean < em¬ make certain that complacency is
tem of state capitalism.
"This is a challenge to business
dead in that company the family thinking that with national income
Do you realize what the 16 bil¬ ploying our selling way of life to
enterprise. Can the whole gamut,
solve our economic and
social has decided to take the public into at 135 billion dollars or more, we
lion dollars of Government invest¬
of goods and services be made so
partnership through sale of stock. won't have to worry much about
ment represents in plants?
The problems. They are the road-maps
markets. There is only one way attractive and can they be sold Sri
power,
U. S. Government owns the great¬
to
a
That is the way
for
real land of milk and honey
that
making
There is another company
to get a national income of 135
No one in that company billion dollars. That way is by
talking with a shoes.
could tell you who wore their selling, selling and more selling.
group of businessmen in Newark
shoes.
They just made them. National income doesn't grow on
of our great industrial empires of about post-war planning, in con¬
trees.
It grows on salesmen's or¬
Someone must buy them at the
steel and oil, etc,, of the past. The nection with my activity as re¬
der books.
You don't have sales
industrial empire of the Govern¬ gional chairman of the Commit¬ other end because they continued
because you have national income
for
Economic Development. to disappear. They have been good
ment today is greater than all of tee
—you have national income be¬
One gentleman got up and said shoes, obviously. But the idea that
these.
cause
you have sales.
National
the company should know some¬
p. The Defense Plant Corporation he had read a lot of pamphlets
income is the measuring rod of
Of the REC which has spent 7 bil¬ and listened to a lot of speeches thing about the customers, about
our sales effort.
It can be high,
lion of the total controls 1,774 and he had come to the conclu¬ what peope want, what they want
as it must be if we are going to
factories, scattered all over the sion that post-war planning, was to pay for shoes, how long they
escape
depression—or it can be
expect them to last, has just crys¬
country. The Army, Navy and Mari¬ just a lot of bunk.
tallized in that firm. Now they low, as in the years of the '30s,
I found out that what he really
time Commission have spent thfc
when selling was our idle oppor¬
other 9 billion.
It is not known meant was that a lot of bunk was are getting their market research
tunity—but high or low, national
how. many plants they financed, being called post-war planning. I program underway and in the
income is simply the figure that
but it is safe to assume a similar think it is time to debunk some of davs ahead they are going to
selling effort rings up on the
sell the people of this country a
jnumber making a grand total of the fancy stuff that has
been
American cash register.
lot more of their shoes.
empire in the world
est industrial
today, with the single exception of
Soviet Russia.
We have boasted
in post-war
became rather prosperous
days.
Recently I
was
fuofb!i called Post-war planning. will
If
Government-controlled,
do that I believe that
that
v
are
The
House
heyday
never
clream of
%
empire.
When the
ernment
war
will
meet
is
the Gov-
over
control
92%
of the
magnesium
capacity of America,
And magnesium is one of the im¬
portant metals of the future. The
Government
than
num
will
will
control1
them.
fired
the
ally rise
trees like
half
chine tool
of
the
important
ma¬
industry will be in the
a
can
will
automatic¬
better world, that
be picked off the
ripe apples and that if
can
produce
135
we
of
curtain
on
customers
More
whole situation
the vaporizing of some people who seem to
think that when the last shot is
more
capacity*
The
see
has been beclouded by
capacity for alumi¬
production.
In aviation it
own
90%, or 10 times the
half the
privatelv-owned
than
,
we
of my
of Morgan in its the
recently completed a
opportunities
ahead
more company
dreamed such a clearly and understand how to survey
behind
the
scenes
of
we
billion
a
national income
dollars
or
more
great big
juicy slice of the pie—^a sort of
painless,
effortless,
share - the everyone
will
get
a
I The Research Department
effectively that the consumer will
the same
be willing to work about
number of hours as in
control
capacity
for
It will
producing
wealth
Utopia.
That last shot will only end
the
i
i
1940 (an
of 28.1 per week in manu¬
facturing) to obtain them?
This
calls for better: market analysis,
more sales research, more imagin¬
ation arid ingenuity in developing
average
new
old
products or new markets for
more strenuous efforts
ones,
to improve
promotion and distri¬
bution."
Do you think the public is just
waiting for a chance to go on at
wild spending spree?
The "Wall
Street Journal" three months ago,
discussing a'WPB survey of the
need for civilian goods, .said that1
Washington was surprised bv
the
>
-
that with a few complaints ' about shortages
backlog of about 100 billion dol¬ and particularly by the disinter¬
lars
of
savings, or
purchasing est" shown by th ese ci tizensv: who J;
power,
and tremendous unfilled were ouestioned. as to whether :
wants and needs, that there is go¬ thev wanted new washers, ironers;;
Some people think
.
•
It is a sur¬
post-war planning
ing to be a bountiful crop of or¬ radios and other consumer goods;
done bv 350 of the largest com¬
Incidentals, that is a great tes¬
ders to share when peace comes.
panies in 22 major groups of in¬
Such thinking is .complacency of timonial for the importance of ad- Idustry.
We found th^t airplane
the
kind
that
needlessly
pro¬ vertising in our national economy;-.
companies plan to make cameras,
longed the last depression.
It is It is a case hi&torv of what hap¬
optical equipment, farm imple¬
far more dangerous now.
That is pens to wants and desires, when
ments, household appliances and
the fallacy of believing that pur¬ they are not,constantly stimulated
building material as their way of
chasing power and markets are through,.-advertising and. -selling.?
helping to dive-bomb another de¬
v
the same thing. Does atgood sales¬ Tt is evidence, that there was an
pression. And airplane and Diesel
man
count a bright prospect as idle opportunity in the depression
engines for airpower will be made
an order in the bag?
Purchasing vonrs of the -°0s, when we had
by
machinery
and
equipment
idle plants, id^e money- and idle
companies, while firms which have power is just a prospect. A sales¬
man
who fails to turn prospects men/Then we had the opportunity
made tires will turn out light-
American
vey
of
business.
the
i
,
hands of the Government.
;
; j
i. Li
v.-
THE COMMERCIAL & FINANCIAL
sell
to
aggressively " and
wants and de¬
more
additional
create
have they create new markets. If they
productivity, employ¬ simply switch demand from one
ment and payrolls.
But in the product to another they will fail
J30s we did not open the door to to promote very much economic
sires, which in turn would
THE
of
knock
opportunity. progress;
that
"
Let
Our
with wooden wheels, some of the people were
synthetic goods and some mer¬ clothed and ill-housed, by present
chandise at pretty high , prices, day standards. ■
*
■
*
because, in America, the
happened? Did people tram¬
each other getting to the incentive to buy has been made
as strong as the incentive to sell
counters? Did they go on a spend¬
ing binge, regardless of price and that we have outdistanced those
•quality? Supplies were short, but lands which have greater natural
there were plenty left over. Peo¬ resources, larger populations, the
ple still want their money's worth. time advantage of older civiliza¬
Human nature doesn't change very tion or other favorable positions.
By developing the incentive to
rapidly.
still
further,
making it
;•
In these days the American peo¬ buy
What
ple
with them
up
is
over
ple are getting lessons in thrift
and conservation which may stay
a
Keeping
long time.
with the Joneses has lost a lot
of its glamour.
-A great many peple have acr
a money reserve for
this
•era
of high wages and liberal
overtime.
If you thought another
depression was around the corner
would you hurry out to spend
your savings when the gong of
buying opportunity sounds? Isn't
it more logical to expect that many
7
cumulated
the first time in their lives in
stronger and more dynamic
it ever, has been before in
than
our
life, we can bring into
reality the better world, a dra¬
matic, satisfying post-war world.
That is the opportunity which lies
national
full
take
to
advantage
want
out
to, live
.
of: income
those plans on
in the annual reports
are
They have been worthwihle sur¬ to rebuild distribution, to recon¬
veys.
But what about the remain? struct markets, to.do a more ag¬
•'tier of the American public?
gressive and constructive adver¬
The National Planning Associa¬ tising and selling job than was
tion found that 55% of the people ever contemplated before.
There is one manufacturer who
questioned have no plans for im¬
-
portant post-war. purchases,; Only
T1 % said they would go out and
spend right away and 73% said
they would save for a while. This
was a survey among
people who
backlog—who could spend
It was made
iemong owners of war bonds.
have
a
if they wanted; to.
That need not be
frightening. It
necessarily pessimistic. It
doesn't foretell that we will be
Is
not
hell-bent for another depression
as soon as the
war is over.
It
simply means that at the
people do not have
incentive to buy. It is a chal¬
55%
an
moment
of
the
It is an
lenge.
those who must
opportunity for
do the necessary
selling job, creating the necessary
desires for things we can produce.
complete layout of ads, mer¬
chandising tie-ups^ sales promo¬
tion
and
dealer
programs
all
has
a
wrapped up and ready for the
day when the big gong sounds
announcing the go-ahead.
An¬
other has gone so far as to get
his ads in the hands of publica¬
tions
so
does
challenge for selling to be
compelling that people will be
productive and,thereby lick
another depression in a real Amer?
ican way.
Whether we meet the
challenge is up to each and every
business man in America to be
That
more aggressive than ever before
It is
a
so
more
fh his life:
,
they can be run on signal
as
the war ends.
This
the
indicate
not
period calls
for
ag-?
ever
be¬
switch that turns purchasing power
We
fore.
shall
with
the
succeed
of markets vision which sees sales opportun¬
and orders on the books, jobs in ities, chances for market expan¬
the plants and payrolls on Satur¬ sion, better distribution methods,
and needs for new products where
day nights.
The new products that are now they have been undeveloped be¬
into the dynamic force
r
in
speeded to
reality by the necessities of this
war, will face some of the same
the
inertia
and
laboratories,
as
the
telephone.
will
them
early
The
have .to
automobile
desire
be
for
created.
They will have to be sold to the
American
people, in
most in-,
stances.
And
sold
against the
fore.
That
is
all
there
is
to
it.
And
that, gentlemen, is all there is to
licking a post-war depression. It
is all there is to most of the prob¬
lems
we
be
we
of
the
products which have created buy¬ can be a national income of 135
ing patterns, The survey made by billion or mbre. If we do a sell¬
our
research
department shows ing job we will have the coopera¬
that 58% of the major industries tive aid
and encouragement of
in America are planning to come Congress and of Agriculture and
the
market, after the war, with
new products.
It will take a year
or
more, in many cases, to get
them into production.
That will
on
be
a
tection of the brokers and
dealers, the fellows who
pay
period for creating appetites.
Labor
towards
handicaps
the
removal
which
of
stand be¬
tween the American people and
prosperity. Worries about our gi¬
any
EVERYWHERE"
"THEATRES
the
•
THE Board of Directors on March 8ttt. U
1944 declared
dividend at the rate of
of NASD
a
the outstanding Common
payable on the 31st :
day of March, 1944 to stockholders of rec*4
ord at the close of business on the 23rd day
of March, 1944. Checks will be mailed.
50c per
share
on
Stock of this Company,
'BERNSTEIN^-#:
DAVID
the
illegal adoption of .the "5 % spread philosophy" any pro¬
brokers or dealers? If that phi¬
losophy is permitted to stand, is any American industry safe
from the undemocratic principle of ceiling spreads?
Is it a protective principle of trade for an association
to lay down a rule governing the all-important trials of its
Business Conduct Committees, and then, for the purpose of
avoiding review by the SEC, to claim it is merely an inter¬
pretation? Does this type of evasion demonstrate sincerity
in the performance of duty on the part of a policing agency?
We contend, if anything, it shows inexcusable opportunism
>
March 9,1944
fees, the dues and the assessments which make the operation
Vice President & Treasurer5
tection to either investors,
of
a
Each person
studied the laws and rules of evidence?
ever
tried is
Do they
defendant.
advise him of his legal rights;
for example, the right to be represented by counsel?
Is it
true, as reported, that defendants are led to believe, they are
amongst friends, and it is not necessary to make a legal
matter of the hearings?
Then the Business Conduct Com¬
mittees proceed to apply the axe.
Much has been said about governmental administrative
agencies which act in a tertiary capacity; (1) they are the
investigators; (2) they are the prosecutors; and (3) they are
the trial judges.
This has been pointed to as a great evil,
and numerous bar associations throughout bur country are
weighing this subject in response to a determined public
demand. Well, the NASD acts in all these capacities and is
not above a wee bit of entrapment on the side.
In the old days when it was illegal for an Indian to have
a
drink, many of them were enticed to bars, and then
arrested.
The NASD survey out of which the "5% spread"
arose
a
smacks of this.
There is
a
forthright
way
of doing what the National
Association of Securities Dealers attempted.
UNITED FRUIT COMPANY
Dividend
A
the
on
payable April
record
1944;
tion.
at
customers
at
counters
the
American "stores.
We
man
and
can
does
Board
of
9,
business-,
himself
by his country, while there
duty,
still is opportunity
by'
knocking.
We
have nothing to fear, as President
gantic national debt and about the Roosevelt one said, but fear itself.
1944
of
stockholders
to
business
March
of
COMPANY
FISHER
Directors
the
at
Transfer
United Shoe
will
8.
business March
not be closed.
DUNCAN,
bilities
according
to
a
this
of
Corporation
have
of 37»/2c per share on the
Preferred capital stock. They have also declared
a
dividend of 62 Vac per share on the Common
capital stock.
and
The
March
dividends
Preferred
both
of
1944.
WALIACK
14,
on
stock are payable April 5, 1944, to
record at the close of business
Common
stockholders
M.
KEMP,
Treasure ;'
THE YALE & TOWNE MFG.
;
;JJ
*
On
the
'
-y. *
•
March
fifteen
-vr
1944,
'
«
dividend
a
COL
'■■■:/{
%
218
No.
Co.,
Inc.,
Board
close
the
1,
of
this
may
be
interesting memorandum
had
upon
request
Hill, Thompson & Co., Inc.
from
*
1944,
to stockholders of record
March 20, 1944.
F. DUNNING,
7.
business
of
'
"
•
Secretary
-
,
Situations Attractive
y
**
Eastern
pany
Corporation
common
warrants, Muskogee Com¬
common
and
preferred;
and
American
and
Cities
&
Power
Light $2.75 and $3.00 preferred off
fer attractive possibilities, accordr
ing to memoranda prepared by
Buckley Bros., 1529 Walnut St.,
Philadelphia, Pa., members of the
New York and Philadelphia Stock
Exchanges.
Copies
of
these
memoranda may be obtained from
the firm upon request.
Du Mont Lab. Attractive
The
current
situation
Du
in
offers
Laboratories
Mont
attrac¬
according to a
by JI E.
Reilly & Co., Ill Broadway, New1
tive
possibilities
memorandum
York
issued
Copies of this inter¬
City.
esting memorandum may be had
from the firm upon
request.
BINDER
For Your
Copies of
"THE CHRONICLE"
practical stiff back string
A
binder
to
especially designed
hold
current
issues
of
"The Chronicle"
Strings in Each
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Address
120
Broadway, New York City. Copies
£•
of
(15c) per share was declared by
of Directors out of past earnings,
payable April
at
*
•
10,
cents
being distributed by
Hill, Thompson &
de*
dividend
a
Plate
detailed
20,
Treasurer
Machinery Corporation
Directors
The
clared
of
close
books
C.
•
a
Company offers attractive possi¬
memorandum
23»
UDELL, Treasurer.
ELLIOTT
1944, declared
record
1944.
:
do it if every
his
of
Tin
share
per
at a meeting heid
dividend for the first
quarter of the year 1944 of 50c a share on tha
common stock of Underwood Elliott Fisher Com¬
pany, payable March 31, 1944, to stockholders
The
March
of
end
15,
close
LIONEL W.
'
Sheet
cents
Accommodate 40 Sections
Attractive Situation
Empire
the
UNDERWOOD
40
high level of taxation and about
the threat of State capitalism can
be swept away with such encour¬
agement and with orders on the
books of American industry and
17$.
:
a policing job which threatens partial extermina¬
Where they expected sympathy, understanding and
cooperation, they are hoisting their own halters.
Of this
they will have no more.
Security dealers both in and out of the organization, are
unrelentingly determined to kill the "5% spread rule?' Ille¬
gally invoked, hypocritically interpreted, the death knell of
this monster is in the offing.
Its parent is also in consider¬
able jeopardy for there is talk of testing the:constitutionality
of the Maloney Act.
No.
seventy-five
capital stock of this Company has been
declared
of
of
dividend
paying for
the
post-war-world.
If
selling job there will
employment and payrolls. If
do the selling job there easily
do
on
•
wishful
more
We can throw the gressive planning than
:
1944. '
JOSEPH
After all, the
contemplated "5% spread" was altogether revolutionary and
thinking that the war is going to would affect the
very continuance in business of a consider¬
end tomorrow.
It indicates pre¬
able portion of the dealers in securities.
As we see it, the
paredness and an aliveness to the
fhtense competition that is ahead entire membership should have been apprised of what was
for everyone in American indus¬
intended, and its authority sought to make the survey. If
try.
such'authority were granted, every security dealer in the
These instances illustrate one
country, whether he was a member or not, should have been
thing that is especially important.
invited to fill out the questionnaire.
This would have re¬
It is that post-war planning is not
After this had been author¬
something new. Businessmen haVe sulted in more complete data.
been
planning
ahead all their ized and done, then the total membership should have been
lives.
Planning is 'the very es¬
given the opportunity to vote on the adoption of any rule
sence
of American management.
based on NASD findings.
Post-war
planning is just good
There is rightful rebellion in the ranks.
old-fashioned
business
planning
NASD mem¬
applied to a particular period. bers are realizing that they are the suckers who have been
soon
as
14,
par
and
of
opportunity of tomorrow. You
will see
evidences of many of
the
the balance sheets
which now
being issued. I saw one the
other day of a packer who had
showing that the public planned to
buy millions of. automobiles and set aside $2,000,000 and labeled it
;other millions' of washers and as "post-war reserve," You will
evidences
in many other
ironers and other modern conve¬ find
niences when the war is over. statements which represent plans
will
'and keep the backlog?
We have had a lot of surveys
;
.
playing Jehovah? We daresay, by and large, security dealers The Board of Directors of the Arundel Cor¬
poration has this day declared 25 cents per
were a
the regular quarterly dividend on the
law-abiding group long before the NASD came to life. share
value stock of the corporation issued
"To adopt, administer and enforce rules of fair prac¬
outstanding, payable
and after April 1,
tice and rules to prevent fraudulent and manipulative acts 1944, to the stockholders of record on the cor¬
poration's books at the close of business March
"
■:
•
and practices, and in general to promote just and equitable 29, 1944.
;N, SEIFERT, Secretary,. '•<
principles of trade for the protection of investors;"
How about the equitable principles of trade for the pro¬ LOEW'S I INCORPORATED
political nature.
Under the present setup, the powers given by the
Maloney Act, and those supplied by the NASD constitution
ahead.
and by-laws, the Business Conduct Committees hold the very
And I can tell you that in the
commercial lives of NASD membership in the palms of their
offices of many of America's fac¬
hands. The men composing these committees probably know
tories, stores and service establistments definite
plans already the trade practices and customs of the security field, but
have been made and are being what do
they know of the duties of trial judges? Have they
made
Md.
March
possible?, What about the papa of the NASD,,the
SEC; hasn't it surfeited the market with so-called "equitable
principles of trade for the protection of investors"? Can the
ill-fed, illNASD, in any sense pretend to be a trade organization? Is
It
of
CORPORATION,
Baltimore,
no
problem
wagons
ARUNDEL
as
'
of tomorrow is
me emphasize that this WPB sur¬
jobs, yes. But the problem of jobs
is the problem of marketing with
vey is likewise an illustration of
the problem and opportunity that advertising and selling. One good
the post-war days present to every salesman can provide more* jobs,
manufacturer/; and distributor* of with his order book, than all of
those post-war planners who sim¬
goods.
Optimism that the public will ply dream of a better world. Sell¬
spend without selling effort, even ing has built America ^ into a
with money jingling in its pockets, mighty nation' from a thin strip
got a jolt last Christmas time. of civilization along the • Atlantic
The
stores
were
offering
toy Coast in 1790, when, perhaps, 95%
Tomorrow must be different.
NOTICES
Notice
Dividend
(Continued from page 1091)
increased
the
1117
"Rule" And Ruin
creating
of
tential
CHRONICLE
DIVIDEND
products have the po->
jobs only as
These new
.-t •
The CHRONICLE
-
25 SPRUCE STREET
NEW YORK
(7), N. Y.
■
Thursday, March 16, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1118
and
America Unafraid.
upon
The fear of vast torces
cial fear.
production and of vast millions
beings released
after the war; the fear of Jim
Crowism
and anti-semitism, of
the chaos latent in anti-racial and
anti-religious hatreds. Even the
fear that our returning veterans
of
of trained human
it
affairs
could
better regulate our
its
representatives had
if
discretionary powers that would
give them greater flexibility of
operation.
Sometimes,
though,
the discretion demanded seemed
pretty wide ranging and the use
made of it alarmingly arbitrary.
We found it hard at times to
seduced by some Huey
reconcile
Long and used to promote these
be
may
with
cleavages.
Mr. DeVoto asks that
and
hatreds
ac¬
we
knowledge the facts that have be¬
into
gotten these fears, drag them
always
methods
cherished^and
We had
Government's
some
of
time-honored
our
concepts;
believed
in
by law—the system
government
which men in
English speaking countries had
Why are struggled for centuries to obtain.
Under that system a man's rights
we afraid of the future?
There are probably many rea¬ were defined and so long as he
the open
What
and face them.
the facts?
are
to
a
our rights
being impinged
groups;
point that began to seem
and unendurable. The
unnecessary
(Continued from page 1090)
mat
warring
and liberties were
bright boys taken to Washington
from the home towns began to
lose their glamour and to look as
Tomorrow's Markets
Walter
either
selves
tle
do
tawdry, and; in all cases, avid
And
we
began to
see
that over-
city and purely nationalistic eco¬
nomic
policies, which had been
recipe for solving
problems, were not only fail¬
ing to revive our own economy,
but were in part the cause of the
G overnment's
our
so.
Buying stocks when they're ing that, a pefiod of dullness
is one thing. Buy¬ during which stocksi will sag
to levels anywhere from five
ing them because some pre¬
determined level.: has been to seven points. Latter stage
penetrated is another thing. may take anywhere from a
In the first case, the buying few weeks to a few months to
in disfavor
usually sound, or at least
influenced by psycholog-'
ical factors.
In the second
economic decline of the European
is
democracies just at the very time
that they needed strength to re¬
the
desire,
<
of other
coun¬
But
practically all the administrative
Govern¬
ment. Men of this school of think¬
tries Was of any great importance
intake and Government outgo.
to
speeches filled our homes,
know that the real hope of social
reassuring us and almost making
advance lies not in deficit spend¬
us
believe that by some arith¬ ing also believe that the American
metical legerdemain the more ex¬ economy is adequate in itself to ing or in an economy of scarcity
but in an ever-expanding econ¬
travagant the expenditures the produce a high standard of wellfurther" off would^ be the day of being in the United States and omy; that the route to such an
accounting.
If anyone
showed that America's strength is suffi¬ economy lies not with the Gov¬
ours.
As a people we accepted the
theory of a nationalistic economy
without much question, only a
realizing that that produced
limited markets. But a policy of
few
government-made, domestic scar¬
city offended
liefs
traditional be¬
our
seemed
and
Government
taken
us
to have
seemed
through the bank crisis
successfully, and since we still
membered
with
of
days
perate
doubted
horror
our
own
the
re¬
des¬
'29 to '32, we
judgment and
felt that Government should have
a
chance to try out its
Government
it
could
sions
of
manner
the
that
country
all
ideas.
claimed
also
redistribute
the
in
would
that
posses¬
such
be
a
cared
for and all but the
purely greedy
happy.
That sounded
good. We encouraged it to try.
*
would
We
be
were
ready
alarm
at
Government's financial
to admit that
cient even in a
modern world to
her safety and make co¬
operation with other nations, ex¬
ary.
As the years went on the myth cept in pious platitudes, unneces¬
of an all-wise, benevolent Gov¬ sary.
ernment was carefully cultivated.
There is another school of think¬
Somehow the most ordinary citi¬ ing, to which the present adminis¬
zen, transposed from the streets tration apparently belongs, that
of Concord, New Hampshire, to would give to the Federal Gov¬
even
greater
control,
Washington, was transformed into ernment
a person of extraordinary endow¬
minute and detailed power of di¬
rection over our economic and so¬
ments, rare foresight and unex¬
pected gifts, particularly if he had cial life. And this school finds the
never gone through the chasten¬
solution of our relationships with
ing experience of running in an other countries not in using our
election.
power to advance our democratic
Of course, he always needed ideals or in the establishment of
more
power than
that granted workable instrumentalities for co¬
him originally, in order to func¬ operation among the nations but
tion
in the muddy game of interna¬
properly i
Power in fact was the Govern¬ tional politics.
not j uggling, he was called reaction¬
contrary
only to nature but to reason. How¬
ever, since by the use of the ex¬
traordinary powers we gave it,
the
functions of the Federal
radio
seci\re
mental rights of
ernment
but
the citizen.
with
the
We
of
various
sorts.
We
hadn't
ex¬
solve
answer
our
to
everything.
problems for
us
If
were
There
are
some
of
this.
But
perhaps it
was
*
*
>k
Summing up, it means that
no longer the time to
think of buying.
It is the
stage at which some selling
should begin.
So far as read¬
this is
column
of this
ers
are
con¬
cerned, the only stock they
hold
American
is
St
ee
1
Founders, bought at 25 and
about 21V2,
now
It will be
remembered that in the col¬
of March 2
umn
advice ap¬
peared that between 27 and
28
stock would
run
into of¬
ferings and profits
were to be
Where these were un¬
taken.
acceptable,
of
stop
a
should be adhered to.
24
If you
still hold the stock, I suggest
raising the stop to 25.
$
$
♦
During the past few week?
I have recommended
num¬
a
ber of stocks at specific prices.
A few times we almost got
them but
these
did
never
sell
of
one
low
enough for
confirmation.
I now suggest
that all unfilled buying orders
be cancelled until further ad¬
vice.
I expect to
with
a
other
furnish you
list
new
as
as
soon
signals I'm looking for
materialize.
More
m
—Walter Whyte
y
[The
views
in
expressed
article do not
necessarily at
time
with
coincide
Chronicle.
those
They
those
are
this
any
of the
presented as
of the author only.]
initiative
ter of our individual citizens,
We
LAMBORN & CO.
also know that even these
ties,
can
so
find
preeminently
a
quali¬
American,
fruitful field for oper¬
99 WALL STREET
NEW YORK 5, N. Y.
ation only in the unlocking of
America's economic doors, only
in
the
abandonment
nationalistic
of
narrow
only in a
world of peace secured by real
and tangible cooperation among
SUGAR
policies,
the nations.
Exports—Imports—Futures
America afraid?
Not if
we
have the courage to
DIgby 4-2727
face the facts.
We have
If
now we
never
lacked energy;
have the insight to rec¬
ognize
our
own
strength, the
imagination to encompass the pos¬
sibilities of the future and the
us,
Established 1850
H. Hentz & Co.
Members
York
New
York
New
York
New
Commodity
Chicago
Orleans
New
Stock
Exchange
Curb
Exchange
Cotton
Exchange
Exchange,
Board
ot
;
2;
Inc.
Trade
Cotton Exchange
And other
Exchanges
ernmental problems which in their
nature are not national in scope
Capital stock of Pollak Manu¬
becoming convictions. For the un¬
facturing offers interesting possi¬
employment lists remained long, are best administered when ad¬
bilities, according to a detailed
Certainly it was plain that we alarmingly long; the Federal defi¬ ministered locally. We know that
discussion of the situation pre¬
had to delegate power to the Fed¬ cit was increasing, the national large discretionary and arbitrary
eral Government if it was to take debt was becoming frighteningly powers granted to any Govern¬ pared by Raymond & Co., 148
State Street, Boston, Mass. Copies
over the burden of our problems.
large; our economic and social life ment, either national or local, are
of this study may be had upon
And perhaps there was something had not found either peace or corrupting to those who possess
request from Raymond & Co.
in
the
Government's
argument plenty. We were torn by bitter them and hazardous to the fundapected
necessary.
course.
and self-reliance and the charac¬
however, moral strength and foresight to
in some ways we had abused our
freedom and used it to harm our it failed to solve the problems its who believe that neither of these pursue the policies necessary to
the
realization of those possi¬
neighbors.
And so we listened citizens so trustingly gave it, the attitudes represents a solution.
reason was simple: it hadn't had
For we know that in a complex bilities; if we have the intelligence
sympathetically to the claim that
to forget both the roaring '20's
Government regulation of some enough power. Each new grant of modern industrial life the Federal
And Government, operating by law, and the enfeebling '30's, we can
of our activities would increase power demanded another.
make the days ahead the greatest
the general well-being.
In vol¬ year after year we voted that not by caprice, must exercise reg¬
we have ever known.
ulatory authority to insure the
untarily submitting to such regu¬ power.
lation
we
somehow found
our
But as the years passed doubts freedom of our citizens. By the
lives subject to minute controls of the ability of Government to same token we know that Gov¬
Attractive Situation
ment's
its
run
not
stayed within them, he could be sist the growing forces of totali¬
case, the buying
is almost
But tarianism.
should place first among both independent and safe.
Then the war came and all prob¬ completely dominated by
them the loss in the past decade Government, in experimenting for
lems were swallowed up by that
our welfare, set up a system under
of our self-reliance.
spirit of the mob. The
which the rules were being con¬ great problem. In the full use of or the fear of being left off
Frightened by the panic of 1929
our
energies for a great purpose
and discouraged by the depres¬ stantly changed—sometimes right
the band wagon, is an over¬
and in the unity that grew out of
sion that followed, as a people we in the middle of the game—and
tha t effort, temporarily we found whelming influence.
turned to Government for help. no man knew just what were his
*
*
trelease from what in comparison
For eleven years—half a genera¬ rights or responsibilities.
It seemed to be true, too, though seemed the minor worries con¬
tion—instead of leading us to the
Last Friday's, Saturday's,
cerning our domestic policies of
solution
of our own problems, this was at first hard to believe,
the past decade.
Monday's and part of Tues¬
Government has paternalistically that representatives of the Gov¬
But with the spectacular, Rus¬
certain groups
day's market was given over
tried to solve our problems for us. ernment favored
sian victories on the eastern front,
almost
At first, scared and humbled by among us and had it in for others.
entirely to psycho¬
Also
they
seemed actually to the successive allied victories in
contemplation of the mess we had
logical buying. It was par¬
stimulate disputes between va¬ Africa and the South Pacific,, and
made of things, we drank in astrue of Monday's
rious groups in order that the with the mobilization of allied ticularly
surance, and submitted gratefully
for
the
invasion1 of and early Tuesday's transac¬
Government might be able the strength
to any demands made upon us.
Europe, despite our consciousness tions.
In some places this
It was Government's theory in more easily to manipulate them
of the tragedies and sacrifices still
the '30's that the cause of our trou¬ for what it considered the greater
new buying is explained as
advantage.
These things ahead (and personally, I am afraid
ble stemmed from the reckless social
at
the
passing, or,
worried us for we had always be¬ we have not yet realized how great relief
20's when, it contended, our pro¬
those sacrifices will be), in spite
rather,
th e
approach, of
ductive 'capacity,
industrial as lieved It the obligation of Gov¬
of that consciousness, we are be¬
March 15 and its tax day.
well as agricultural, had been al¬ ernment to represent all groups
to
visualize the days
lowed to expand far beyond our and classes of citizens and, so far ginning
But whatever the reason, the
when the war will be over; Ana
needs.
Therefore, it argued, re¬ as possible, to bring about har¬
in our hearts, remembering our fact remains that the market
striction of industrial production, mony among them.
Part of the Government's plan own failures in the '20's and our did go up and take offerings
limitation of farm crops, and re¬
Government's failure to solve our
which were overhanging for
duction of livestock would fur¬ for solving our problems was to
nish the answer to declining prices spend money from the Federal problems in the '3Cf's, we almost
The prob¬
fear to face those coming days of many a long week.
and steadily.
which, it maintained, had been Treasury, widely
lem now arises, what of the
created by the excess. At the same This was on the theory of pump peace.
The nation that has become the market from here on.
time, it accepted the governmental priming. And we watched anx¬
arsenal of democracy, the produc¬
*
*
*
principle of the '20's that if the iously for results. But the pumps
tion wonder of the world, hesi¬
United States were locked up and had to be primed again and again
The first sign of what to
tates and doubts its own capacity.
a
nationalistic economic
policy in order to keep any water flow¬
Some men, remembering nostalgi¬ expect was given in Tuesday's
pursued, we could all somehow ing.
And although the process did cally and with rose colored glasses afternoon
live
in
prosperity through the
trading. Here and
take care of some of those out of what they now think of as the
simple process of taking in each
there
a
couple of stocks
other's washings.
But it made a work, it didn't produce any solu¬ expansive^free and uncontrolled
down without any
novel addition to that principle: tion of the growing problem of days before TEo^iT^t^WorldJ^TL. slipped
are saying that the solution of our
appl^TOt^feet-Qm^^rest of;
the washings must be kept small. unemployment. '
It gradually became plain to us problems lies in releasing our eco¬ the list.
But this side-slip in
And like Government of the '20s
nomic life from any regulation
it didn't feel that what happened that there was a constantly widen¬
the face of rosy-hued optimand
in returning to the states
ing expanse between Government
the economies
a
I sub¬
bought stock, them¬ sequently feel that we are
advised others to now headed for one of two
things.
First, a sudden set¬
back to about 137-138 or, fail¬
But I
to
reached,
already
level of surfeitedness.
1096)
sons.
;
has
or
for power.
centralized control, planned scar¬
market. is reaching,
that the
(Continued from page
them, quite ordi¬
nary—in fact in some cases, a lit¬
unimportant.
or
remembered
we
Whyte
Savs
shrugged ofras
For it indicates
ism cannot be
N. Y. Cotton Exchange Bldg.
NEW YORK
CHICAGO
DETROIT
GENEVA,
4, N. Y.
PITTSBURGH
SWITZERLAND
Volume
Number 4264
159
<
»'
/
for
OFFERINGS
supplied!
Offering—Prtee to public to be
:
amendment.
by
■j, Proceeds—From the estimated net pro¬
ceeds approximately $3,428,712 will be used
Fruehauf Trailer Co. .has filed a regis¬
tration
statement
for
60,000
shares
of to redeem at $107.50 per share all of the
AV» %
convertible
preferred
stock,
par outstanding 5% convertible preferred stock
of the company within 70 days after re¬
value $100 per share.
:
^ •
ceipt by it of the proceeds from the sale of
Address—10940 Harper Avenue, Detroit,
TRAILER CO.
FRUEIIAUF
•
,
*
HART, SCHAFFNER & MARX
1
Mich.
i
the
\
'
is the largest man¬
truck-trailers in the United
Business—Company
ufacturer
of
States.
■
-V^
..
-
preferred stock.
The
be added to work¬
of
issue
new
of proceeds will
balance
ing capital.
a
•
2-5312. Form
Registration Statement No.
^
Underwriting—Lehman Brothers, N. Y.,
Walling. Lerchen & Co., Detroit, head
the underwriters, with names of others to
by Lehman Bros,
Offered March 16, 1944,
and
Lerchen & Co., and Associ¬
Watling,
ates, at $103 per share.
toe supplied by amendment.
and
filed
has-
Marx
with
a
Securities
the
share.
Of
shares
registered a number to
all issued and outstand¬
be later specified,
be
to
are
sold
certain
for
Address—36
Franklin
South
6, 111.
Business—Consists
manufacture
grouped according to the dates on which the registra¬
tion statements will in normal course become effective, that
are
and
sale
wholesale
at
the
of
the
grades of men's suits overcoats and
women's suits and coats.
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
authorities which normally become
certain foreign public
effective in
days.
seven
of 4:30
par
THURSDAY, MARCH 16
State Bond
and
Mortgage Co. has regis¬
savings
certificates
accumulative
tered
Series
1207-A
certificates
savings
000,000.
and accumulative
$1,000,000,
which
stock
Va
Street,
Minnesota
North
Minn.
Ulm,
Since
—
Investment
company.
the com¬
sold by
Underwriting—Will be
pany's own sales organization.
Offering—Offering price of Series 1207-A
is 94.03 to 96.60 and of Series 1217-A 83.30
to 85.68.
Proceeds—For investment.
*
Registration Statement No. 2-5310. Form
(2-26-44).
March
filed
1944
13,
to
defer effective date.
and
shingles
and
gypsum
H. Davis
fic Co.,
Chicago, is named principal underwriter,
or
dealer manager and company will pay
to selected dealers
a
commission for the
to
suant
debentures,
fund
'1959.
March
due
1,
1
'
Address—1250
Sixth
New
Avenue,
York
.City, and Universal City, Cal.
Business—Engaged in the production
of
'motion pictures.
Underwriting—Dillon, Head fit Co., head
offer of
an
preference stock
such shares for the
income debentures and shares of com¬
stock on the basis of $100 principal
right to exchange
new
of
of
of
will be
.others
underwriters.
Names
of
supplied by amendment.
Offering—Price
will
public
the
to
be
'supplied by amendment.
Proceeds—Net proceeds
will be applied
about March "18,
^1944t~ oF $5,035)606^ principal-- amount--of
secured notes outstanding and to the re¬
demption' at 102 on or about April 18,
1944, of $1,983,000 .face amount of tl$e
company's ten-year 5% convertible deben¬
tures, due April 1, 1950.
Any remainder
of net proceeds will be added to the gen'eral funds of the company.
the prepayment,
to
on
or
Registration Statement No. 2-5311. Form
(3-3-44).
•
A-2.
common
cumulative prior preference stock. The
6%
statement
states
that
the
company
proposes,
under certain condi¬
tions, to issue to the holders of the 625,340
shares
of common
stock presently out¬
standing, common stock purchase warrants
entitling the holders in the aggregate to
purchase, at a price to be announced later,
208,446 additional shares of common, and
registration
issue
to
The
and
Profit
Sharing
Pension
Washington National Insurance
Savings
Fund
of
has
Employes
Company
filed
tion statement for $500,000 being
amount
the
of
three
employees
years'
28, 1944.
■-
1
XX"
Church
Address—610
estimated
contributions
following
period
■
'
registra¬
a
during
March
■: X^'X^^X .
Street, Evanston,
•
Business—Retirement plan for employees
of
Underwriting—No underwriter.
Offering—Under operating fund for em¬
the
of Washington National In¬
employees.
Participating em¬
fund
'pension
surance
offering consists of participa-.
savings and profit sharing
the
in
tions
.
Co...
5%
ployees must contribute
of compensa¬
tion but in no case, more than 5%
or more
Proceeds—For
Schaffner
investment.
COMMONWEALTH INVESTMENT CO.
;
Commonwealth Investment Co. has reg¬
istered 100,000 shares of capital stock, $1
1948.
1%%
and
!
' ••
"
•
;
X Business—Diversified open-end,
manage¬
of
the
of
the
OF OFFERING
con¬
debentures
and
company
shares oi
preference
the
retired
and
will
reduced
be
each
share
of
$1
capital
the
of
by
retired.
the
of
sum
For
company
$100 for
share of
each
issued pursuant, to offer,
common
will
deducted
be
Registration
from
the
sur¬
March
on
and
families principally.
proceeds from sale of the
Marx
UNDETERMINED
us.
CORPORA¬
TION
Corporation
has
Agnew
Avenue,
Other
chain
a
and
per
York
of
26
retail
states
in
which
misses'
popular
suits,
lin¬
will
be
supplied
by
the
public
Is
$7
exclusive
of
a
per
com¬
total
of
$2,000 to be received by the company from
the proceeds of
ten
cents
the sale to the underwriters
per warrant share, of war¬
entitling the holders to purchase at
$7 per share an aggregate of 20,000 shares
of common stock.
Proceeds—Will
of
the
be
added
company
to
and
the
be
working
available
regis¬
/
Boston
,
Registration Statement No. 2-5274.
Form
(12-21-43.)
'.>sVk.V<r;v- v • .) ."'.Vv'
filed Feb. 25, 1944, to defer
Avenue,
Amendment
effective
Business—Operating
public
utility
en¬
in producing, purchasing and dis¬
tributing natural gas.
Underwriting—Names to be supplied by
post-effective
the
be
to
are
new preferred
sale subject to
and
offered
for
competitive bidding requirements of the
The
Commission.
interest
name
dend
rate
stock.
preferred
will
and
the bonds
on
the
on
bidder
successful
rate
divi¬
Offer¬
prices of both bonds and stock will
be supplied by post-effective amendment.
Proceeds—Net
proceeds,
together
with
such additional amounts up to $6,500,000
ing
obtained from
bank loan will be
as follows:
$16,500,000 face amount of first mortgage
bonds, Series B, 33A%, due Aug. 1, 1955,
as
of
proceeds
new
a
to redemption
104 y2
first
and
required,
be
may
the
applied
and
Series
bonds,
mortgage
amount
face
3%
C
oi
due
1956,
1.
share
preferred stock, $50 par, at $55 per
or
$5,008,025, grand total $35,964,-
840.
The
of
$3
required for such pur¬
reduced to the extent the
convertible prior preferred is con¬
amounts
will
poses
$5.50
be
into
verted
stock
common
the
before
securities and new bank loan
required from the company's gen¬
arid will be available for the
La.
tivation
Offering—10 be named by amendment.
series
due
first
of
stock,
common
Jan.
bonds;
in
the
face
effective
filed
Feb.
to defer
1944,
23,
bank
loans
and
to redeem the en¬
serial notes, due Aug. 1.
$36,000,000;
filed
registration statement for $1,500,000 5%
stock, cumulative, par $100 per
preferred
of
4%
1944-48,
outstanding in the face amount
$4,150,000, and to redeem on March 1,
1944,
of
snare, the-errtife"issue
stock, par $100 per
20,000 shares are out¬
at
6%
its
share,
preferred
which
of
standing;,
Registration Statement No. 2-5252.
(11-13-43).
,
Amendment
filed Jan.
1944, to defer
22,
effective date.
10. 1944,
principally in gener¬
selling electric energy
and selling water.
Underwriting—None involved in issue of
NORTHWEST AIRLINES, INC.
Northwest
Airlines,
Inc.,
has
registration
stock,
common
the
a
for 139,460 shares
without par value, of
will be offered to
shares
117,460
company's
present
stock¬
common
holders and the balance to be issued under
options.
:
Address—1885
Paul
University
air transportation
Business—Engaged in
with
respect to persons, property and mail,
and
the
St.!
Avenue,
Minn.
4,
the
in
States
of the
prosecution
Underwriting
Redpath
head
—
connection
in
with
of contracts
performance
United
the
with
war.
Offering—Holders of record at
January,
to
common
stock
to
be
named,
will
be
subscribe
to
the
shares
ratio
then
of
held,
of
at
of
common
share
one
date In
a
company's
pro
rata
price
a
eaoh
for
be
to
subscription
warrants
will
expire at 3 p.m. on Jan.
15,
1944.
The
underwriting
group
will
by
The
amendment.
be
is
it
entire net proceeds will
general corporate purposes
expected
temporarily
States
Government.
sirable
that
provide
its
meet
It
the
is
construction
with
routes
funds
as
and
of
its
United
considered
at
this
with
responsibilities
and
de¬
which
to
and oppor¬
additional
hangars,
the
facilities
purchase of
in connec¬
present routes and
hereafter
be
such new
acquired
or
in
by the company.
It is
probable, although not certain, that addi=
tional
flying and other equipment may
tions
As
available
before
additional
becomes
the
for
commercial
termination
flying
available,
and
the
of
other
opera¬
the
war.
equipment
company
must
com¬
shares
of
Okla¬
be reduced pro
holders of more than
the
case
to
of Southwestern accept the
offer.
Middle West Corp. has
shares
exchange
shar&>and accrued dividends, 2,500
15,000 shares,
less such number
oi
of
UNITED
tionds
part of Electric Bond and Share Sys¬
-
of
price
of
result
of
will
bonds
be
filed
by
bidding
competitive
after
the
post-effective amendment.
a
Proceeds—Pursuant
to
authorization
in
the Securities & Ex¬
Oklahoma will, upon
dissolution of Southwestern, principal
1943,
December,
by
Commission,
holding
of
company
acquire
Oklahoma,
subject to
the lia¬
bilities of Southwestern at date of acquisi¬
of
Southwestern
Oklahoma will acquire the properties
of
face
amount of the subsidiary's first mortgage
bonds, Series A, 33A%, due Dec. 1, 1969.
The net proceeds, to be received by Okla¬
tion.
the
subject
subsidiary
from
homa
the sale of the bonds of Series
together with
registered,
the
$6,648,000
to
company,
at
are
to be
105%,
of
general funds
applied to the
such bonds of
subsidiary.
Registration Statement No. 2-E275.
A-2.
(12-21-43.)
.Registration
statement
effective
EWT, on Jan. 10, 1944.
5:30
p.m.,
PUBLIC
Public
SERVICE
Service
CORP.
Corp.
of
OF
Public
1953; to
000
Texas
has
filed
^X.X-XXX
Business—Public
'.!:■■■■
utility corporation.
Underwriting—Keystone Pipe fic Supply
Co.,
Butler,
Pa.,
is named underwriter,
parent of registrant.
Offering—There
will
be
no
principal
but the bonds received by
underwriter,
the Keystone Pipe fie Supply Co.,
parent of
registrant, will be offered to holders of
its preferred stock in exchange for same.
6%
due
Debentures
Share;
to
repay
and to purchase from United Gas Pipe Line
$6,000,000
due
of
its
1st,
Balance
1961.
Coll.
&
will
be
4%
used
in
part to reimburse treasury for capital ex¬
penditures and possibly to pay accumulated
dividends
of
$9,502,490 on companys $7
preferred stock
Registration Statement No. 2-4760, Form
A-2 (5-15-41)
United Gas Corp. filed amendment with
SEC on Feb. 21, 1942, stating that it had
been
unable
chase
panies
further
to
the
extend
pur¬
agreements with 14 insurance com¬
covering the proposed prlvate_sale
to such
—-
lnsitranee eompanier Of $75,000,000
of the
company's first mortgage and col¬
lateral trust 3Vt% bonds, due 1959.
This 1
amendment
ments
poration
the
to
"These purchase agreeFeb. 16, 1942.
The cor¬
to continue negotiations
states:
expired
on
intends
end
Its
that
bonds
shall
the
said
or
by renewal of
agreements or otherwise,
''
>'
either
be
sold'privately,
afore¬
offered
to the public as circumstances shall dictate
order to obtain the best possible price."
In
Amendment filed March 2,
1944, to defer
effective date.
VIRGINIA ELECTRIC
POWER
&
CO.
Virginia Electric & Power Co. has regis¬
shares of $5 dividend pre¬
stock and $24,500,000 first and re¬
305,192
ferred
funding
bonds,
mortgage
1,
series
2v/z %
D
,
1974.
Address—7th and Franklin Streets, Rich¬
mond 9, Va.
Business—The securities
are
to be issued
with the proposed merger of
connection
Virginia
Public
into Virginia
Both companies are
Service
Electric fic Power Co.
Co.
operating public utility companies.
Underwriting—Names
will
be
supplied
amendment.
Bonds are to be offered
at competitive bidding under Commission's
by
Rule
U-50,
'
,
Offering—Immediately prior to the mer¬
Engineers Public Service Co. will acquire
ger
from
General
&
Gas
Electric
Corp.
all of
the 782,000 outstanding shares of VPS and
a
claim of General to $1,165,166 held in
for
escrow,
aggregate consideration of
to be
an
$2,500,000, of which $1,500,000 is
paid
in
installments
contingent
upon
specified earnings of the merged companies
within five years
from the merger date.
If
and when the merger plan becomes effec¬
tive, each share of VPS 7% preferred and
VPS
6%
accrued
verted
preferred, including all rights to
unpaid dividends, will be con¬
and
Into
in
lVo
shares
each
addition,
of
new
share
preferred
of
VPS
7%
preferred will receive $5.50 in cash.
All of
the 782,000 shares of common of VPS will
be converted into 150,000 shares of com¬
stock of Vepco.
preferred
share
cash
of
for
new
will
Each share of Vepco
converted into one
and will receive
be
preferred
accrued
and
unpaid dividends to
shares of common
will remain
will issue and sell
$24,500,000 face amount of Series D bonds,
and
also
$5,000,000 of
new
notes,
and
will make provision for the redemption of
the
outstanding $26,000,000 face amount
the
merger
date.
The
stock of Vepco now outstanding
outstanding.
Vepco
of VPS bonds and the outstanding
000
face
amount
of VPS
$10,500,-
debentures.
Purpose—For merger and refunding.
X;"T,
Registration Statement No. 2-5297. Form
S-l.
(2-1-44).
Amendment
filed Feb.
is to be $100 par of effective date.
the bonds for $100 par value of preferred
(This list is
The
to
will
demand note of $25,925,-
Bond and
a
Worth, Texas.
sold
names
$2,000,000 open account debt to E. B. & 8.;
old
registration statement for $800,000 5%
25-year first mortgage bonds.
Address—Burk
Burnett
Building,
Fort
Service
pay 6%
Electric
to
mon
TEXAS
be
whose
investors,
supplied by amendment, at 99.34%
Proceeds—To redeem $28,850,000 United
and
Form
will
Terms—Bonds
Offering
be
in
assets
^ V.:
Street, New York City
tem
be subscribed for pursuant to the
exchange offer.
No
underwriting com¬
missions will be paid by the company in
connection with the exchange offer.
Of¬
may
the
and
Business—Production and sale of natural
gas;
due April
the
-
1958
aue
Address—2 Rector
in excess of 2.500 shares as
at
fering
•
registered $75,000,000
collateral trust ,3V«%
Corp.
uas
mortgage
$100 per share and accrued
dividends,
10,000 shares
of said
15,000
shares of 5% preferred, less such number
of shares thereof in excess of 5,000 shares
as
-
-
.
CORPORATION
WAS
United
first
tered
homa;
,1
supplies
of
purchase
effective date.
subscribed for pursuant to the
exchange offer, and American Public Serv¬
ice Co. has agreed to purchase from Okla¬
be
may
the
and
Registration Statement No. 2-5291.
Form
S-l. X; (1-21-43.)*:
:
'
<T
Amendment filed Feb. 25, 1944, to defer
agreed to purchase from Oklahoma at $100
time
flying,
other equipment, the
other
may
participated
become
in
rata
invested
the
expected funds will be used
acquisition. of
machinery
tion
is
It
be
of
company
with
future
tunities.
for
the
itself
will
they
securities
in
preferred
of
Subscriptions
redemption,
available for
and
5%
number
A
by amendment
at
subsidiary of Oklahoma, the right to ex¬
change, on a share for share basis, 15,000
of such shares of Southwestern for a like
of
at a price to be named
purposes
sale
for
supplied by amendment.
Offering—The company is offering to
the holders of 24,255 publicly held shares
of
$6
preferred,
without par ^alue^oL^
Sdtitlfwesteftt- Light
Power Co., principal
them
to'the public
exchange
for
offered
be
change
aggregate
an
shares
additional
in
of the
given
is
be
will
filing
Auchincloss,
Parker
&
underwriting
group.
the
Others will be named by amendment.
117,460
which
shares thereof
filed
statement
of
natural gas
petitive bidding and names of underwriters
said
which
purchasing,
also
per
.
Tulsa.
Business—Engaged
15,000
statement
effective under
deficiency 5:30 p.m. EWT on Feb.
Registration
notice of
1,
Okla.
homa.
Form
S-l.
1971.
Main Street,
South
Address—600
will
15-
due Sept. 1, 1950,
working capital and
to
materials.
raw
Gas
Public Service Co. of Oklahoma has
stock
added
be applied to the reduction of current
may
date.
SERVICE CO. OF OKLAHOMA
PUBLIC
Bonds
re¬
income bonds,
6%
balance
and
Institutional
Amendment
to
the
4%
1944,
20,
mortgage
outstanding
1963,
issue
tire
of
before
of
the
to
of general mortgage
principal amount
year
bonds
or
applied
demption, at the principal amount thereof
plus annual Interest, of the $998,405 in
Co.,
shares
be
Proceeds—Will
A, VA%, due Feb.
on
the
be named by amendment.
others to
Offering—Prices to the public will be
supplied by post-effective amendment.
Proceeds—Company intends -to use the
proceeds from the sale of the bonds and
the preferred stock together, with a por¬
tion of
the proceeds from the sale of
issue
fC
processing of
sugar
raw
and refined sugars,
syrups, black strap molasses and bagasse.
Underwriting—Paul H. Davis & Co. and
and $6,600,000 first mortgage bonds.
Additional
sugar cane and the manufacsale of products and by-products
resulting from
cane,
including
Registration Statement No. 2-5302. Form
and
of
and
ture
Underwriters—None
S-l.' (2-7-44).
ating,
Building, New Or¬
v,
X^XX. Xi X; X.--'.
primarily of the cul¬
.
Business—Consists
purpose.
a
filed
statement
for
$1,500,000
5 % bonds due Dec. 31,
Address—Carondelet
leans,
other than those provided
funds
1944,
has
Corporation
1955.
new
be
eral
7,
CORPORATION
Coast
registration
mortgage
re¬
demption date.
If no conversions of the
$5.50 convertible prior preferred are made
South
first
purposes
$3,678,000
request filed March
COAST
SOUTH
The
a
amendment.
Offering—The bonds
stock
THE
Series
redeem
date.
Withdrawal
gaged
share,
entire
is one $100
case
value
amendment.
communications
$480,800
supplied by
each
in
basis
in
bonds
for
$100
par
of
preferred stock. • The balance of the pre¬
ferred stock of the registrant outstanding
in the amount of $5,875 will be called in
bonds
Tulsa, Okla.
will
pending specific application of such funds,
with net cash proceeds to the
of
will be
of underwriters
preferred
its outstanding
for
The
by the registrant and retired.
by the
CO.
statement for $38,000,000
first
mortgage bonds,
3 V2 %
series due
1968, and 40,000 shares 4%% cumulative
preferred stock, par $100 per share.
Address—415 Clifford St., Detroit, Mich.
Business—Engaged in the natural and
manufactured gas business in Michigan.
Underwriting—Securities are to be of¬
fered for sale at competitive bidding and
named
.
to
GAS
registration
names
has
:•
S-l
additional sums,
Michigan Consolidated Gas Co. has filed
p.m.
,
names
and
Co.,
&
CONSOLIDATED
MICHIGAN
p.m.
New
apparel, coats,
hangbags, etc.
Offering—Price
pany
Co-.;. Sutro
&
Co.
mortgage
of-
(Keystone Pipe & Supply Co.)
exchange
par value $50 per share.
Address — 624
South
purchase the unsubscribed shares and offer
southeastern
women's
wearing
registration statement for $6,737,- capital
six
Co.,
Merrill
Central
Inc.;
Co.,
Whiting, Weeks fir Stubbs, Inc."
a
In
$6,380,000 and redemption of 91,055 share?
Johnston, Lemon & Co.; Kebbon, Mc& Co.; Newburger & Hano; Shu-
Proceeds—The
in
&
Gas
first
be
to
are
by the registrant in exchange for
outstanding preferred, stock and by the
Its
1944, to defer
to
Cormick
4
stock, par value $1
Eighth
and
will be Blyth &
who
Natural
securities
Purpose—The
fered
Form
naming
state¬
stock
of
shares
120,500
filed
13
registration
amount
Becker
G.
A.
man,
for
at 104Vi, total $21,076,815;
payment of $3,500,000 bank loan; redemp¬
tion of 58,000 shares of $5.50 convertible
prior preferred stock at $110 per share or
Lynch, Pierce, Fenner & Beane;
Republic Co. (Inc.); McDonald-Coolidge &
Co.; Hallgarten & Co.; Hemphill, Noyes &
,
sells
rants
PRODUCTS
of
as
has registered 80,000
Corp.
of common
share,
at
Products
Stores
City.
>.
Business—Operates
-
to
Inc.;
5:30
effective
1944
to
March
Marx
its
the
underwriters
two
STORES CORP.
Diana
We
unknown
offered
be
&
to
correcting
stock,
10,
amendment.
present beiow a list of Issues
registration statements were filed,
twenty days or more ago, but whose
offering dates have not been deter¬
amendment
ment
at
owns.
series due April 1, 1961, and 180,000 shares
of preferred stock, Series A,
cumulative,
April
Schaffner
Hart,
an
registrant
par
at
(2-25-44).
rights
1943.
Dec.-15,
share.
ac¬
;
statement
Registration
EWT
the
Registration Statement No. 2-5309. Form
A-2.
sum
capital
Statement No. 2-5241. Form
S-l.: (10-27-43);
writer.
whose
a
and
is
gerie, hosiery,
Underwriting—Van Alstyne, Noel & Co.,
New
York,
are
named principal
under¬
(3-6-44).
Certain-teed
issue
stock
exchanged and
all such shares of preference stock will be
priced
lied
the
debentures
by
stock offered will consist of shares
the
of
Registration Statement No. 2-5314. Form
ERTAIN-TEED
and
for
the exchange offer being de¬
income
common
it
are
less
the procure¬
and
clared effective bv the company.
Proceeds—The proceeds to the
stores
or
not
subscribed
not
senior
new
tingent upon
Proceeds—For investment.
mined
stock
stockholders
common
'ale
of
commitment for the purchase of
a
common
Offering—At market.
DATES
stockholders
common
ment
any
holders
offer.
The proposal to issue
stock purchase warrants to pres¬
common
to
offered
amendment.
the
the
Address—519
Underwriting—North American Securities
S-5.
of
57,250 shares of the preference stock
accept
ent
date
certain
a
shares
•.;\av
•••••.'•
Co.
,
.
serior de¬
new
indebtedness
The company reserves the right
revoke
the
offer
of
exchange unless
than
ment investment company.
V
the
other
to
rate
not been
company.
Address—2500 Russ Building, San Fran■
to
be subordinated
will
1,
but will not exceed
The income debentures
determined,
per annum.
bentures
interest
The
senior debentures has
new
finally
March
due
A,
outstanding.
now
of the
DIANA
value.
,c?0ii,
Series
debentures,
and
are
from
to the selling stockholders.
Price
selling stockholders is to be named by
of
gold
shares
new
underwriters
go
other funds, to the redemption of the outstandihg deberituresT' There arts $T,-100,(300"
face amount of 20-year 5M>% sinking fund
,
.■
under certain
sell $5,500,000
account and credited to capital
count represented by such share.
Registration Statement No. 2-5313. Form
•C-1. (3-6-44).
:
and
the
stockholders
principal amount of new serior debentures
and to apply the proceeds of the sale of
the new senior debentures,
together with
<
par
common
plus
than $250 per year.
•
proposes,
issue
to
the
of
by
355,782 Va
to
public at a price to be set by amendment.
shares being sold are a portion of the
holdings of certain members of the Hart,
amount
of
company.
ployees
of
-
111.
•
also
company
conditions,
within
WASHINGTON NATIONAL INSURANCE CO.
shares
such
sell
and
stock cot taken up by the warrant holders.
to
SATURDAY, MARCH 25
and two
stock for each share of
debentures
income
•
group
prior
cumulative
6%
its
shares
of the preferred stock of "
and has agreed to accept
par
the bonds registered in exchange
registrant's preferred stock which it
the
stock.
$18,000,000
of
however,
owner,
shares
24,096
date.
Oklahoma
the
is
underwriter
filed March 3,
Is
the
underwriter
(12-23-43.)
Amendment
effective
not bound to
registered.
The
underwriter
securities
The
all
take
In
Vv
A-2.
to
portion
acquired
certain
exchange.
Offering—The company
offers to the
holders of the outstanding 67,373 shares of
shares
.UNIVERSAL PICTURES CO., INC.
Universal Pictures Co., Inc., filed a reg¬
istration
statement for
$7,500,000
3%%
stock pur¬
deposit of shares of preference
mon
WEDNESDAY, MARCH 22
the
is
142,313
A
be
Co.;
Underwriting-—Paul
amount
sinking
and selling asphalt roofing,
related products, wallboard
products, boxboard and vari¬
other products.
ous
the
Amendment
generally of
consists
Business—Business
manufacturing
its
incorporation
in
1914, the company has been actively and
continuously engaged in the business of
issuing and selling face amount certificates.
Business
A-2.
from
shares.
the
111.
cago,
Address—26
i
stock.'
Address—120 South LaSalle Street, Chi¬
ence
$4,-
1217-A
Series
debentures
(subordinated) to be due Oct, 31, 1973;
134,746 shares of common stock, $1 par
value, and certificates of deposit for 67,373 shares of 6 % cumulative prior prefer¬
income
cumulative
4%
300
by
The
—
stock
stock issued for each present share,
will
increase
outstanding common
of new
stock
STATE BOND AND MORTGAGE CO.
.
amendment.
presently
outstanding
be changed from $20
value to $10 par value and 2V2 shares
Offering
common
to
New
filed
be
Proceeds—The
ing,
,
to
The
day follow-
Offerings will rarely be made before the
of
group
others
to
These dates, unless otherwise specified, are as
P,M, Eastern Wat Time as per rule 930 (b).
fic Co., Inc., heads
underwriters, the names of
Underwriting—Blyth
the
stock.
place
to
needs.
Registration Statement No. 2-5279.
tered
of
including, in recent years, mili¬
uniforms, and, to a small extent,
tary
its
program,
ing.
Chi¬
Street,
principally
topcoats,
Following is a list of issues whose registration stater
filed less than twenty days ago. These issues
the
OKLAHOMA NATURAL GAS CO.
cago
ments were
promptly
for
the company
may
find it necessary to provide
addi¬
tional funds through the sale of addition*'
securities, bank borrowings, the issuance
of
equipment trust certificates, or other
financing, although the company has no
present plans for any such other financ¬
out
stock¬
holders.
better
position
a
sufficient
carrying
Exchange
Commission
for
120,000
shares of common stock, par value $10 per
13-4-44).
S-l.
and
&
registration statement
ing,
'
,
Schaffner
Hart,
in
orders
Registration Statement No. 2-5300. Form
S-2.
(2,-3-44)
> J-'.: •£'.*
Amendment filed March 7, 1944, to defer
effective date.
4
.
'
be
especially
general corporate purposes,
the opening of additional stores.
Flotations
Calendar Of New Security
1119
THE COMMERCIAL & FINANCIAL CHRONICLE
' '
...
28,
1944, to defer
basis of exchange
incomplete this
week)
Thursday, March 16, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1120
For Dealers
Teletype—N. Y. 1-9TX
IIAnover 2-0050
.
Merrimack Mfg. Co.
..
V
i
•
I'"/-. '
'\-d.
.V
>j
;
'
Trading Markets
Firm
issues
all
,
,
1
"jM »H|'
''
/
••
r
"
Incorporated
'
•
i\
'
n«
.
t '
V
N
American Distilling
s
r.arl marks 4 r.o. Inc.
/
V';
'
-
Manufacturer
'.
' '/v.. '
'
.
<»<'i
<•'-
«"•
/
•»
l'
•'; •»
of Hydraulic Controls and Assemblies
for Present
M. S. WlEN & Co.
and Post-War Products
FOREIGN SECURITIES
SPECIALISTS
50 Broad Street
=========
AFFILIATE: CARL MARKS &
Trading Market and Information
New York 4, N. Y.
CO. Inc. CH1CAC0=^
On Coverriments"
forecast on Feb.
As
/
.
March' 2 Secretary
plans for refunding all notes and hcmcls>
Morgenthau announced
or guaranteed by the Treasury, which mature
called on or prior to June 15, 1944. . . . Along the Street
.
.
.
Inasmuch
to cope
with contingencies that might
SELLING PRESSURE
develop.
.
.
tore
1-576
6-1952
cost averaging two to
possible
...
.
tial
.
net
acquired partially exempts on a
yield basis several points below current prices.
incentive to sell unless one believes
.
.
.
that
the market might collapse temporarily—a conclusion generally
conceded to be highly improbable. .
.
When an investor is in
excess-profits brackets, any profit-taking operation obviously
mitigates against the liquidation of any obligation producing rela¬
tively high net income.
Therefore it can be said that excessprofits conscious investors owning, for example, the 2%s of
65/60, surely are not interested in selling, BUT, on the contrary,
Would purchase additional tax-exempts given a favorable oppor¬
In such cases there is no
in strengthening
the present weak market, and such action might develop within the
next few days, inasmuch as the books on the exchange offering
closed
3-15-44.
on
...
.
.
tunity.
.
«
.
,
.
"So far
There are some commercial banks and other investors who, as
yet, do not feel the impact of high taxes because losses may be estab¬
profits—and would undoubtedly sell at the drop of
a hat to conserve existing gains.
.
.
At least, commercial banks in
tliis classification are decreasing at a fairly rapid rate, so that profits
lished to offset
.
accepted eagerly a year ago are no longer as attractive as they once
were, which attitude is born of inability to substitute, for an unknown
period, low coupon bonds for Governments owned which provide
considerably higher and satisfactory current return.
There re¬
.
miums
»
.
.
.
spite of the fact that long partially exempts may be vulnerable
that the psychology of the investors
owning such obligations has changed completely during the past few
present levels, we believe
years
from concern to indifference with regard to market fluctua¬
tions, and in many cases a downright reluctance to abandon estab¬
lished positions regardless of costs.
.
This statement is made
as
.
dreds of investors, most of whom are commercial bankers,
dence a tremendous interest in and actual need for fully or
percentage of present premiums.
,
and
opportunities now.
.
.
buy additional
We believe that the entire
certain bonds—for
investment
tors, and
banks
Interesting Situation
remain
fers
are
.
sound
,
.
increasing demand for the sharply decreasing
(3) The Federal Reserve
members of the
'future,
Open Market Committee can and will
whatever controls may be required in order
,
/
Interesting Realty Issue
R.
Johnson
H.
analyzed future increased earnings and had wisely provided some
tax
exemption,
and
major opportunities afforded in
have^ taken
advantage
of the
1941, 1942 or 1943 to buy any
all of the four longest partially-exempt issues at prices
I,
Co., 64 Wall
&
St., New York City, have issued
an
interesting study of Hotels
which offers in¬
possibilities at current
firm believes.
Copies
be had upon request from
Statler Co., Inc.,
teresting
levels
may
the
R. H. Johnson & Co.
January Rail
Vilas & Hickey,
New
York
New York
issued
an
Results
49 Wall Street,
City, members of the
Stock Exchange, have
interesting circular giv¬
ing January rail results.
Copies
of this circular may be had from
request.
INDEX
-
<
Page
Stocks...
.1100
of New Security Flotations 1119
Calendar
Canadian
Mutual
...1104
,....1102
Securities
Funds
Municipal News and Notes.....7....1113
Our Reporter on Governments... ..1120
Our Reporter's Report............ .1096
Public Utility Securities.'.......... .1097
Railroad Securities
1095
Real Estate
.1096
Securities
Corner
1107
Markets—Walter Whyte
Security Salesman's
Tomorrow's
orderly markets in Government obligations.
Tennessee Products
GILCHRIST
Pfd.
COMPANY
:..V
1095
Empire Sheet &
Tin Plate
Pressurelube
Common Stock
Stand. Coated Prod. Pfd.
First Mortgage
';
safe,
...
of
Detroit Stock Ex¬
Copies of this memoran¬
dum may be had from the firm
upon request.
-
change.
Illinois Pow. div. arrears
NEW
LISTED
YORK
ON
CURB
THE
EXCHANGE
Memorandum
...
measure
ac¬
issued
by Mercier, McDowell & Dolphyn,
Buhl
Building,
Detroit, Mich.,
...
Doubt¬
and
situation
interesting
an
cording to a memorandum
Bank and Insurance
prices of issues providing such
relatively firm in the face of imponderable fac¬
successfully exercise
-
Aeronautical Products, Inc., of¬
Why sell when prof¬
will advance over current markets within the near
to maintain
Telephone HAnover 2-4341
the firm upon
taxes?
(2) Because of the
income will
Street, New York 4, N.' Y.
partially-exempts will retain—and when possible
obligations of this classification.
its will increase
who evi¬
partially
Many of these bankers, especially since 1941, had correctly
or
.
.
Circular on Request
:
material decreases in
one
.
Summarizing, we believe that:
(1) Holders of
50 Broad
hun-
going to stay that way.
While they have experienced
loans, deposits have increased and net earnings
have grown largely as a result of careful selection of conservative,
top-grade investments.
are
.
issues lose any material
1924
Over-the-Counter Securities since
.
jected to question or criticism by regulatory authorities.
eliminated—their
.
do not—the 2*4s of
example, the 2s of 9-15-53/51—present advantageous
7
.
been
.
taxable market will act very well, and that
ing strength of their respective institutions.
During the past
10 years these gentlemen have been engaged in the process of or
have completed liquidation of investments which have been sub¬
have
.
is to admit that the largest pre¬
2lAs of 58/56 about 103.17; and the
Eastern States
assets
only the partially-exempts.
one
most vulnerable—and we
exempt income as an important factor which conributes to the grow¬
ful
If
2J4s of
55/52 should encounter lower prices. . . . We believe that In¬
vestors holding such bonds will continue to retain their com¬
.
result of conversations with
a
...
supply of partially-exempt income,
,
In
at
the
are
at 104; the
54/52
mains, however, the unknown factor—the professional trader. . . .
Any attempt to measure his constantly changing conclusions is fruit¬
less indeed..—
have discussed
we
What about taxables?
mitments, and do not expect to see these
HIGH TAXES AND COMMERCIAL BANKS
/
Schulte Real Estate
Venezuela Syndicate
.
might produce a noticeable effect
about $47,000,000,
/
Theatres
Select
;
MORRIS STEIN & CO.
...
Perhaps, but we believe that, in the
.
.
/
.
.
main, commercial banks have
sound
Keliett Aircraft
levels, but we believe the odds are against such market action. .
.
Let's assume that price fluctuations will occur. . . . What practical
difference would such declines and advances mean, when investments
are made on a sound
net income basis, and the premiums involved
.
/•"
.
Hartman Tobacco
LOWER PRICE HAZARD
,
'
v-
Evans Wallower Zinc
■
of about 22/32s annually. . . .
Granted the 23/4s of 65/60 might decline 22/32s from current
and Federal Reserve
exemption?
tax
Electroly Inc.
(3-13-44) is 112.3; the amortizable pre¬
The present asked price
...
Footwear
Schild Co,
Eitingon
mium is the equivalent
.
.
Cuba Co.
Eastern
.
.
Tele. NY 1-2218
amortized; and, undbr the 1942 Reve¬
Act,- can be amortized to the call date rather than maturity.
Consider, then, the most; remote call date on the 2%s of
12-15-65/60.
The 1942 Revenue Act arbitrarily reduces this issue,
for amortization purposes, to a maturity of 16 years and 9 months.
.
Ass'n
Y. Security Dealers
Street,. New York 5
Pine
30
Tel. WHitehall 4-7970
nue
The real hazard which would make for lower prices is a reduction
officials, by this recent ex¬
of excess-profits taxes.
With no such change expected until post¬
change offering, house-cleaning against the days when the repurcuswar years, with 52% of all fully or partially exempt Governments
sions of screaming invasion headlines may prove to be a test of their
combined abilities to control possible market disturbances?... If this outstanding called or ^callable within the/ftext five years, in the face
is the case, what sections of the market might require support if of the invasion, in the face of liquidation by Mutual institutions
selling pressure materializes? . . . Partially exempts?
. .
expeqted at the time of the Fifth War Loan, in the face of other
At the close on 3-13-44, the five longest partially exempts
factors which could cause declines, we continue to believe that long,
had advanced from 24/32s to 32/32s against 2-1-44 bids. . . .
partially-exempts will prove to be valuable property. ... It will be
Some profits have been taken recently, and of size sufficient
most interesting to observe what percentage of holders of recentlyto cause declines of about 8/32s from the highs of the current
move.
What investors holding such issues would be inter¬
called obligations will choose to accept cash rather than taxable
ested in selling in the event a decline does materialize?
dssues-^and^nay-elect-ia invest cash so received Jn partially exempt
Commercial banks, or other investors who presumably need par¬
Governments.
Only 1% of the total refunding operation, or
Are Treasury
L. D. SHERMAN & CO.
Members N.
...
advantageously amortized to jcall date?
.
Limestone
bell teletype
new
whichr fact further reduces any
Partially-exempts must be
.
.
'
.
interest in selling.
...
000,000 Treasury 4s may be called prior to 12-15-44. . . .
as
CIs, Bills and Debentures offer no problem, the Treasury and
the Federal Reserve Banks may be said to be in a position prepared
.
what lower than costs;
investors will be
if ever, "has the Treasury refunded only bonds
and notes so far in advance of maturity or call date on such a huge
scale—$4,730,000,000. . . . Other than CIs, Bills and Debentures, two
issues of Federal Land Bank bonds may be called for payment on
7-1 and 7-15-44, and the $196,000,000 involved may be paid off in
cash.
On 9-15-44, two notes totaling $918,000,000 mature; $1,037,-
7/
.
current levels. . . . May one expect investors
who have been fortunate enough to make such worthwhile com¬
mitments to liquidate, even though they may believe that a de- •:
cline of two or more points is possible—even probable? . . . We
believe not.
After all, the amortized book values are some¬
.
^Seldom before,
6015
Enterprise
5
Y O RK
three points below
the
The
2V2S of 70/65, are currently offered at 100.6. . . . The latter, two
bonds have moved up about 3/32s, and the 2y4s are expected to
advance slowly against the day—9-15-46—when commercial banks
may purchase this issue in the open market. . . . We believe that,
glad to pay 100M4 for the new l^s within the near
future.
As a matter of fact, the majority of commercial bankers
who have expressed their opinion to us are well pleased with the
2-8780
1-1397
Y.
N.
Indiana
Association
N E W
ranging as low as 108.16 to 109.16—or a
available
pointment was evident inasmuch as the only issue made
commercial banks—the lV2s of 9-15-48—was priced close to
market.
All three securities, the iv2s, the 2y4s of 59/56,
.
HAnover
St., N.Y.
AND COMMON
to
.
,
telephone
philadelphia
7
2-3600
REotob
or could be
some disap¬
S TR E E T
N AS SA U
telephone
17 in this column, 'on
issued
Members
.
45
MacKINNON
By DONALD
25 Broad
Company
&
INCORPORATED
New" York Security Dealers
«,
.
.
Dealers Ass'n
Members N. Y. Security
request
on
Teletype
Kobbe, Gearhart
U0ur Repwter
,
Plain
,
.
j./tf":'.' v "I
I
England Pub. Serv.
Common Stock
i.
,
Electrol
Jj
SECURITIES
CUBAN & SUGAR
.
New
W. T. BONN & CO.
120
r
Broadway
Telephone
Bell
New York 5
COrtlandt 7-0744
Teletype NY
1-886
Members New
York Curb Exchange
30 Pine Street
.'
Tel.
New York
WHitehall 4-9200
upon
request
'
Stanley Heller & Co.
6s» 1948
available
Hill, Thompson & Co., Inc.
Markets
120
and Situations
for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele^NY 1-2660
@FedFRASER