Full text of Commercial and Financial Chronicle : March 16, 1944, Vol. 159, No. 4264, Section 2

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2 Sections-Section 2

ESTABLISHED OVER 100 YEARS

Edition

■V'

8. Pat. Office

Reg. U.

Volume

New York, N. Y., Thursday,

Number 4264

159

Price

March 16, 1944

Cents

Copy

Sees Danger In Declining Federal Reserve
fervently to be hoped that most of the "pop¬
conditions, prospects, and ideals Ratios And Treasury Domination In Financial Affairs
Dr. Spahr

The Financial Situation
It is most

ular" discussion of post-war

impression upon the public. Other¬
universal disappointment is inevitable
when the fighting has ceased, disappointment of a sort which
might well affect public policy in a way to make a bad!

is making

little

or no

wise, deep and all but

situation

much

Precisely why so many men

worse.

and

of them ordinarily reasonably endowed with
sense, should have chosen the post-war era as a

both

common

Reserve

upon

which to grow silly and

clear, but it is certain that they are
disfavor in

proportion to their

sentimental is not

likely to do mankind a

influence.

"comforts,"
and equally fantastic forecasts of improvements in familiar
things, are perhaps among the least harmful of the long list
of strange things predicted. Common sense should warn us
gadgets

all that whatever has been learned in science or

in produc¬

tion technique during the war, it all has been to date, and
probably Will be until the end of the war, wholly devoted to
the defeat of our enemies.
Only after the war will it be

possible for manufacturers to get down to real business in
applying such things to the production of peacetime goods—
and, for that matter, often determining what can be done
with some of these things to meet the needs of ordinary
times.
But even if the public does permit itself to be
bewitched with all this fine talk about things out of Wonder¬

likely to give rise
great damage and, in any event, as time passes in the post*
war era, a reasonable proportion of these predictions will

land, the resulting disappointment is not
to

true no

come

doubt.

Dangerous Doctrine
Much

dangerous is the impression likely to be

given the rank and file that the production records estab(Continued on page 1124)

Holds World Peace

the Re¬
ratio

serve

stood
If

62.4.

"Let

decline

the

Dr. Walter E.

months

International Organisms—Sees Potential Industrializa¬

rate as in
past 1*3 months, we will be
down to the 42% of May, 1920.
Sixteen months ago—on Oct. 21,
83.1.

downward trend in this
ratio continues at any¬

"If the

quickly

of the

international banking pro-

his conclusions.

Mr. Wilson devotes

man

and

demonstrating:

all great

included,

Powers, our own country
are

imperialistic

devoted first and

and

foremost to the

pursuit of their own selfish in¬
terests; and (3) that any attempt
to set up a world organization to
keep the peace is bound to fail
because
the
nations
lack the
"moral character" to live up to
the

high purposes of a League

Nations.
The most we can

hope for, ac¬

spect for each other's rights."

Mr.

Wilson,
"Why chase rainbows? To senti¬
mentalize, moralize or dogmatize
Therefore,

says

about peace is
be fatal

dangerous and will

America in the world

to come."-

Nevertheless,

■.

this

com¬

pletely pessimistic, not to say
cynical, review of history, he ends
his thesis on an entirely, different
note by
quoting the words of

"gradual Jesus: "Blessed are the Peace¬
acceptance and slow development makers, for they shall be called
of a Super-World Court for arbi¬ the Children of God.",
tration," and the organization of
Was this astounding juxtaposi¬
a
glorified
debating
society, tion of ideas intended as sarcasm,
"along the lines of the Pan-Amer¬ or is Mr. Wilson merely naive?
cording to Mr. Wilson, is

...1121

Regular Features

Union," "to collaborate in a

(Continued

page

1129)

effective

the

control

money

over

markets

Congress is showing increasing irritation over the political activi¬
CIO and the indications are pretty definite that it will
A vehicle for this is provided in the new tax

organizations give
Inasmuch, how¬
likely to be devoted to a simplifica¬

requires that labor and other tax-free

accounting of their receipts and expenditures.

the next few months are

doubtful'♦>-—.

.,.

.v.1

provision will serve to give tinue to work in the war plants.
Their unionization has not come
an airing to the CIO's operations
before the next election.
Thus, it about through their own initiative.
if this

probable that a committee will They are the victims, though they
set up to conduct an investi¬ have no feeling on the subject, of
the Government's more or less

•........1121 gation.

Moody's Bond Prices and Yields
1130
Moody's Common Stock Yields
1130
Items About Banks and Trust Cos.. 1136
NYSE

Reserve

the

look into them soon.

Washington Ahead of the

News

Odd-Lot

Trading

........1133

York Exchanges... .1133
Values at Feb. 29. .1131,1134

Trading on New

State

Trade

1122

General Review

Leftist

The

has

press

been forcing them into the union.

shouting bloody murder over this

and

prospect
the

been

even

portion

Conservative

asking

why

the

press

of
has

organiza¬

right to go into politics
should be questioned.
This isn't

tion's

the

question at issue.
is really a story of one of
the most amazing gambles, by a
Weekly Engineering
few
men,
with
other
people's
February Totals........ —
.1130
money that the country has ex¬
Paperboard Industry Statistics......1135
perienced in a long time.
And it
Weekly Lumber Movement
.1135 is
being done in collusion with
Domestic Index .1133

Commodity Prices,

Weekly Carloadings

1135
Construction.. .1131

Fertilizer Association

Price Index... 1131

1132
Weekly Steel Review
..1129
Finished. Shipments in February . .1131
Moody's Daily Commodity Index....1130
Weekly Crude Oil

Production

Non-Ferrous Metals

Market

1134
...1132

..1130
Copper Statistics (Latest Summary) 1130
February Bank Debits
..1133
Income Payments to Individuals in

Weekly Electric Output......

ican

credit

Washington

the Government.

Weekly Coal and Coke Output

after

authorities the power to

exercise

ties of the

ever, as

Page

NYSE Issue

by nature a

operated to remove from the

Reserve

which

dollar would

tion of tax returns, it is

Editorial

v:/

several col-^

(1) that general international understand¬
quarrelsome ing to promote post-war peace by
and re¬
bloodthirsty brute; (2) that re-creating good will

umns

have

By CARLISLE BARGERON

GENERAL CONTENTS

From

the utter futility of

artificially low interest
by the Treasury

"The

rates maintained

Ahead Of The News

law which

Editor, "Commercial and Financial Chronicle":
Dear Sir:—-Alexander Wilson's communication in the "Chronicle"

painstaking research that one can only regret

of the

devaluation

become

Financial Situation

much sincere and

A radical

this country.

banks in

lead

that
extremely
dangerous and possibly disastrous.
"If, today, $5,000,000,000 of our
gold were set aside for one or all
can

Need For Unremitting
Efforts To Establish World Medium to Preserve Peace

"Why a New League of Nations Will Not

this respect.

A drop of ten

authorities
reserve
probably follow. A financial col¬ normally would exercise controls.
thing like the rate of the past 16
these low money
lapse and chaos could well be the Furthermore,
months, all the talk and agitation
rates will make it inviting for for¬
result.
regarding the putting of several
"Sixteen months are not a long eign balances to move out at the
billions of dollars of our gold at
(Continued on page 1125)
time; and it looks as though they
the disposal of other countries will
become academic indeed, unless
members of Congress fail to no¬
tice the danger signals in these

Threat To "White Supremacy"

Permanent Peace," gives evidence of so

if, by June, 1945, our reserve
What if Gov¬
ernment bonds crack as they did
in 1920?

British pound

pegged at what is doubtless an
artificially high rate which means
that we are subsidizing Britain in

points in
the prices of Government bonds
would wipe* out the capital, sur¬
ratio stood at plus, and" undivided profits of
many, perhaps most, of the large

reserve

In Asia And Indicative Of Urgent

Ensure

bilization Fund. The

person

situation will

June, 1945—at the same
the

1942—the

the

what

ratio reaches. 42%!

declining reserve ratios and
this country into a program

Deplores "Defeatist Attitude" Of Those Who Cite
League Of Nations' Failure In Arguing Against Success
Of Further Efforts To Prevent Conflicts Through

of March 9 on the subject,

Spahi-

—

thoughtful

every

consider

for

continues

another

the

Reserve

From

Body Offers

Only Assurance Against Wars

tion Of China and India

de¬

that year.
"On Feb. 23,

1944,

markets and
operations of the Federal

arid domestic money

demon¬

can

System.
convincing manner
"In general, these Treasury pol¬
now and
icies involve artificialities of a
June, 1945, will not be as sharply
sort that promise to be unhealthy
downward as it has been since Oc¬
in the long run; and the unhealthtober, 1942?
iness of some of them has been
"Recent experience calls for a
apparent for too long a time.
great prudence now.
From here
"Foreign
exchange rates are
on we should regard the decl'ning
reserve
ratios as red flags
of chiefly in the hands of the Treas¬
ury, operating through the Sta¬
warning.

ficiencies in
reserves

in this

picture that calls for
consideration: that is the

serious

that the trend between

paid tax pen¬
for

Affairs

Financial

financial

in any

strate

Reserve banks

alties

tion

"There is another aspect

ratio

reserve

Matter of Treasury Domina¬

approximately important part played by the
above the cracking Treasury in the foreign exchange

point of 1920.
"What economist

the

tion.
The

47%—not far

(May 14).

Eight

in the financial affairs

counted as part
the Federal Re¬

our

stand

would

banks stood at
42.2

banks,

serve

Reserve

eral

not

of the reserves of

Fed¬

the

and

grams,

notes

deposits

going to be a vital 16 months
of this na¬

are

<$>

Federal

and

Least Harmful

Fantastic lists of new devices,

Univer-^*

York

bulletin issued on February 29th by the Economists' Com¬
mittee on Monetary Policy of which he is Executive Secretary, indi¬
cates that he thinks it is "time for some red flags" in our monetary
situation.
"When our Federal Reserve credit structure reached the
cracking point in May, 1920," he states, "the ratio of reserves against
a

women, some

subject

Snahr, Professor of Finance at New

Dr. Walter E.

sity, in

....1132

December

Cottonseed Receipts to Feb. 29
4th War Loan Drive

1134

Subscriptions. .1127

It should be borne in

mind that

fully 70% of the CIO's member¬
ship is made up of temporary, or
war
industrial
workers.
They
have

background

unionism.

traditions

They are from the

Now, to a lesser extent, this is
of the American Federation

true

of Labor.

It, too, holds

these tem¬

workers under rigid closed
shop contracts. ; But there is a
distinct difference.
They consti¬
tute the froth of the AFL's mem¬
porary

They constitute, on the
hand, the bulk, by far, of
membership.

bership.
other

the CIO
Now

assessing

the

CIO

these

politicos

workers

port the Fourth/Term
along with various
collateral enterprises.

are

to sup¬

campaign,

and

sundry

In a not so

roundabout way, it is a case

of the

siphoning off the
"excess" earnings to fill its cam¬

Government

paign kitty.
Before the war they
were making as low as $5 a week.

counters,
the Now they they are making from
drawn to the $60 to $100 or more a week. It is
industries by the high wages. as if the New Dealers figure that
Presumably, they will go back to
having been responsible for these
these pursuits when the war is
(Continued on page 1125)
over.
Certainly they won't com

farms,

the

white

collar

war

soda

class,

Donald Jefscn Advocates Go^Drnmenl Oontrol

Coiagress Aitd The People
been

has

Government

monopolized by "one

March

Government

return

goods manufacturing until established firms can
peace-time production. Advices to this effect were con¬

Associated Press dispatch from Washington, on March 9,
published in the New York "Sun," which added:

tained in

"Restrictions

'new'companies f;
which want to enter an industry sible to do
on

l'or the. first time will undoubtedly

with

needed," he wrote Senator Ma-

loney (D., Conn.) "until the

industries,- and which are
position to resume production

former

their

products, have
allocations."

The letter, virtually a
for

the clash

blueprint

Mr.

Maloney had asked Mr. Nel¬

if WPB had

concerning
to

enter

firms

specific policy

firms did not

though such
produce such items
.'

Declaring the Government
not
attempt to prevent
new competition, Mr. Nelson said

should

controls

industrial

The State Of Trade

«.

industry

active, but volume continued below the high level of a year

Department stores revealed a gain in sales of 1% for the week.
electricity

Railroad buy¬
and miscel¬
laneous
consumption
shows
a
from 4,444,939,000 in the precedgain.
Sheetmakers for the most
ing week, according to the Edison
Electric
Institute.
This was a part are booked into late third

York

reports

output

system

Carloadings of revenue freight
for

the

totaled

March

ended

week

788,255 cars, according to

the Association of American Rail¬

This

roads.

was

increase

from the preceding
week this year, 39,329 cars more
than the corresponding week in
1943
and
17,770 cars above the
like period two years ago.
This
5,792

total

cars

loadings

■

•

for

week of the 10
Steel

•

119.64%

was

average

the corresponding
preceding years.

production in the United
is

the

the industry

second

highest
for the industry

peak since
established its record
a

1,781,300 net tons in the week
beginning Oct. 11, 1943, when,
however, a smaller capacity was
available. Increased requirements
for

steel

for

war

purposes

con¬

tinue to delay the

the

case

shortage

would be likely to occur,

Mr.

little opportunity
to obtain August delivery prom¬
ises, some mills offering Sep¬
with

quarter,

tember and October as their best.

Retail trade turned:

last

week, but volume continued
the high level of a year

& Bradstreet, Inc., re¬
ported.
Because of the uncer*tainty of delivery schedules, re¬
tailers
have
not
put as much
promotional efforts- behind preas

the

previous years,
review.
How¬
.

piece-goods
departments,
backed
by the
"sew-and-save"
promotions are doing heavy busi¬
ever,

The chief

ness.

concern

of whole¬

salers remained the

situation.
market

ing

contracts

war

Most

were

are

cut

back,

adding:
"Our policy

is to expand civil¬

ian production as it becomes pos¬

tight delivery
buyers in the

interested in check¬

deliveries of spring goods
ordering available fall mer¬
Retailers were reported
stocking up on handbags and
jewelry items in anticipation of
"beat-the-tax" consumer buying.
Retail volume for the country as
on

and

long-time plea
for steel for civilian goods, according to the magazine "Steel."
A
survey
by
the
publication
shows backlogs are accumulating
in most major products.
This is
particularly noticeable in hot and

chandise.

without

is permitted to resume pro¬

area

duction."

Maloney asked if it would

Mr.
be

practicable
returned

first

require

civilian

firms
manu¬

facturing to market part of their

through other companies
working on war contracts.

goods
still

"There may be

which

this

certain instances
can

soundly

done," Mr. Nelson said, "and if so
I

in favor of doing it.

some

industries, however, serious prac¬
obstacles would

tical

overcome

have to be

before such an arrange¬

could

into effect.
This is a problem requiring indi¬
vidual consideration of and by
ment

put

industry, involved."';

each

Department store sales on a
country-wide basis were up T %
for the week ended March 4, com¬
pared with the like week a year

according to the Federal Re¬
Systems Sales for the four
period ended March 4

serve

weeks'
were

down

10%

compared

with

the like period last year.
Depart¬
ment
store sales
in
New York

City in the week ended March 11
were

week

larger than in the like

last

RY inkers ilss'tr

Opposes* Persniffisig Deserve
IemfeerS:T©^fes®rk Erekassge Okarges New York

The

Asociation, representing the 700
the state, lodged on March 11 a formal

State Bankers

commercial banks throughout

protest against legislation pending in Congress to permit Federal
exchange charges made by non-par

Reserve member banks to absorb
clearance banks for clearing

In the House the

and collecting checks.

embodying the new legislation, was passed on March 2 by
a
voice vote; a reference to the'"
proposed legislation appeared in Robert F. Wagner, of New York,
our issue of March 2, page 921. in
Chairman, and to the 19 members
Brown bill

which it

was

noted that the Board

of Governors of the Reserve Sys¬
tem

had

tion

in a resolu¬
Federal
Advisory

been urged

the

of the Senate Committee on

Bank¬

ing and Currency which is sched¬
uled to hold hearings shortly, on
the Brown Bill, and the Maybank

Council to firmly oppose

Bill.

Brown

tion

According to the Associa¬
the intent of these bills is to

according . to a
estimate issued
by

year,

preliminary

the Federal Reserve Bank of New

Before

the

House

Chairman Spence

March 2.

(Dem., Ky.), of

said, ac¬
Associated Press ad¬
"Congress had never

the Banking Committee,

cording
vices,

that

Banking Act
of 1933 to delegate to the Federal
Reserve Board the power to in¬
intended

under the

terpret the act so as to forbid the

absorption
of exchange."
press advices added:
"Little banks
have said
will be

The

Reserve

narrow

York.

the

four weeks

after

period

con¬

those of the

calized to the dozen

therb

where

are

States

still many non¬

banks.
The opposition has
national proportions be¬

par

grown to

the introduction

cause

of this

ended

corresponding month

bank Bills contend that many cor¬

respondent banks which follow
the
practice' of absorbing
ex¬

up large demand balances
thereby draw deposits away
from natural trade areas and trade

and

streams."

"Memory
has
often
proved
short,"'said Mr. Gersten.
"These
bills have in them potentialities
for a repetition of events of the
1920's when many banks attracted

disproportionately large demand
deposits by competitive payment
of high rates of interest.
The
withdrawal of such funds, par¬
ticularly by large depositors,
sometimes referred to as 'smart'
money, is a simple matter requir¬
ing only the drawing of a check.
In
contemplating
the
dangers
lurking in the proposed legisla¬
tion, it is well to recall the days
when wholesale withdrawals and

transfers of demand deposits led
the

weakening

banks

sections of the country and
brought on the hysteria that was
cured only by the 1933 bank holi¬
many

Regulation 'Q'

day.

designed

was

prevent artificial accumulation
deposits by banks to
wh ich such fund s would not nor¬
to

of demand

Section

Hence,

flow.

mally

should not be weakened."
The Association also savs:

"In

recent case cited by the

Reserve

Federal
bank

small

from

Board,

deposits

its

ran

$800,000 to over $8,000,000 in less
a

year.

Of this, $6,800,000 or

represented
correspondent
bank accounts.
Another case in¬
volves a bank in a town with
oopulation of a few hundred with
balances
of
$73,750,000,
Other
cases on record
show growth in

thev

passed," the Kentuckian added.

Act

Federal

that the absorp¬

correspondent bank balances up
to as high as 625% largely as a
result of this practice of absorbing
exchange charges.
"According to a

re¬

only 2.529 banks out of
in the United States are

System,

14,030

clearance basis."
Association's message to
members bf the Senate Committee
a

non-par

The

Banking and Currency said

part:

the New
State Bankers Association
the pertinent provision of
the opinion of

"It is
York
that

specifically exempted and there¬

amended, which mads, 'No
member bank shall directly or in¬

fore will not be considered to con¬

of interest on de¬

stitute payment
mand

deposits.

«■

Association,

pointed out that

the Association's action in protect¬

ing the Brown and Maybank

prompted

was

communications
banks

Bill?
of

up-State

urging opposition to amend¬

ment of the

"The

■

present law.

urgen cy

of the situati on
the

created by the passage of

Brown Bill in the House of Repre¬

sentatives,"
"Small
State

are

Mr.

banks

device whatso¬
interest on any de¬
posit which • is payable on de¬
mand,' and Regulation 'Q' based
thereon, are sound and in further¬
ance of conservative bankings'
directly,

Gersten
said.
throughout
the

sound."

any

pav any

"Though these bills

hundreds

from

Reserve

ever,

E. Chester Gersten. President of
the

Act,

(Brown and

Maybank) deal directly with the
interpretation of Section 19, the
inherent danger is that they pro¬
vide an opening wedge for arti¬
ficially budding up large demand

Thus, their passage will
about abuses and
ultimately harmful effects upon

deposits.
tend

bring

banking economy.

our

"Be assured that we are

But

ment of Commerce.

bulletin

cently published by the Board of
Governors of the Federal Reserve

Section 19 of the Federal

creased

"The attempt to establish the
right of member banks to absorb
exchange charges was at first lo¬

tion of exchange charges will be

was

destroyed unless this bill

19 of the

amend Section

strongly opposed to the
Representative W o 1 c o 11 enactment of the proposed legisla¬
strip.
■
March 11 sales were unchanged (Rep., Mich.), declared that mas¬ tion.
All of the banks of New
"induce York State clear checks at par. 58-3
In spite of reduction in small compared with the like period a sage of the bill would
loose fiscal policies that might af¬
arms contracts and continued de¬
year ago.
In the previous week
of-them as members of the Fed¬
cline
in
machine tool
require- ended March 4, sales of this group fect banking throughout the eral Reserve System and the re¬
of stores were 2% less than in the United States."
ments, bar deliveries have become
maining 113 through Federal Re¬
more
extended
The Association's protest against serve collection channels.
recently,
after corresponding 1943 period.
They
easing
the legislation was sent to Senator feel that legislation sanctioning
considerably
in
Chain
early
store
and
retail
mail
weeks of this year.
Aircraft re¬ order house sales in January were
the absorption of a charge by the
quirements
for bars
have
in¬ about $1,100,000,000, or 5% above last
bank is totally un¬
year, according to the Depart¬ collecting
cold rolled sheets and in

System ruled that absorption of
exchange charges is a violation of
the Board's Regulation 'Q.'
-

than

;

ago,

started

September when the Board of
Governors of the Federal Reserve
last

82%

Dun

according

supply of

the

non-critical

public interest
waiting
until another concern in a critical
that

materials and parts
were
the controlling factors
in
permitting industries to get into
civilian Viproduction
when their

area

active

below

Easter sales

said

Nelson

with
give a

can

I think it is to the

injuring

manpower,

materials
and
parts to resume production of
things the civilian economy needs.

both the
Bill, and its companion bill
level on record
in the Senate, viz., the Maybank
this week, according to the Amer¬
Bill.
The legislation, it is stated,
ican Iron & Steel Institute.
Out¬
is designed to prevent the Reserve
put is scheduled at 99.1% of rated
capacity, equivalent to 1,775,200 a whole was estimated at 2 to 5% System from enforcing the regu¬
lation (known as Q) intended to
net tons of ingots and castings. below the
corresponding week last
check
absorption
of
exchange
This compares with operations at
year.
charges by- member banks.
93.8%
and
output of
1,769,800
States

tons last week and is

increased

has

ing

ago,

169,300,000.

•

another

relaxed

were

servative buying.

■

215,900,000 kilowatt hours in the
week ended March 5, an increase
of 27.5%
over the 1943
total of

•

Even

production for war."

in-

gain of 13.1% over the year ago
total
of
3,946,630,000.
Consoli¬
dated
Edison Company of New

•

time.

some

manufacturer

duction, but added:..
"However, the need for controls
is obviously going to continue for,

reporting the second highest level on record this
week.
Carloadings showed up well again and electric power pro¬ material which is in good supply
duction reflected a fair weekly gain.
The retail trade was reported today, if suddenly the controls

'•

•

with the

effort

war

manpower

they

to be necessary to war pro¬

cease

the

interference

without

"If

even

before the war?"

Obviously,
entirely

cannot

Government

prevent such hardships.

"desire

which

the society.

ments in

the

production of particular
items

civilian

should be relaxed whenever

4,464,686,000 kilowatt
hours in the week ended March 4,

which the

entered

build

without saying that the
tremendous impact, of war on the
economy
is bound to produce
hardship for some business con¬
cerns, as well as for other ele¬
"It goes

coming industrial switch
peace-time
production,
was
placed in the Congressional Rec¬
ord by the Connecticut Senator.
son

impossibility.

ical

the

Government

resume

public support.

Production

has

Association

change charges as a means of re¬
warding non-par correspondents,

received their just

apparently grown openly resentful; let it now show
that it can be really constructive.
There would then be no need to worry about

creased

production; at the same
time, but this is, of course, a phys¬

people will be on the side of Congress."
Certainly the people "will be on the side of
Congress" the moment they are satisfied that that
body is functioning effectively as contemplated in
our scheme of things.
It has been supine; it has been "balky"; it has

ago.

■

an¬

March

legislation to legalize the practice.
Opponents of the Brown and May-

"The

as more

program,

war

particularly in concerns whose
orders have been cut back."
To Senator Maloney'S question
whether national producers will
war

are

affected

"Seeing this unwise trend, Congress has moved
stop it. Congress would curb the dictums of the
bureaucrats and retain for the people control of this

steel

without interference

over-all

its

long as wartime be given an even start on civilian
retained, materials, production, Mr. Nelson said:
and components should not be al¬
"It <wotiid certainly be conven¬
located to these 'new' firms until ient as well as fair to allow all
firms already established in the manufacturers in each industry to
"Certainly,

controls

now

critical components and materials
in easy supply.

are

individual.

Most of the heaVy Industries showed gains last week,

and

the

Association

."-"The controversy into

■ ■

them out of civilian

shaping the tax bills they could absolutely control
and dictate the life of all industry and of every

power.
This has brought about
between the bureaucrats and Congress.

EnToac® Tinte" -

Nelson, head.of the War Production Board, advocated
control of war-born companies to hold

Donald M.

through power to make regulations they could make
the administrative laws * of the " nation; through

vast

:VThe

nouncement in the matter

11, says:

sSi Of :War-Born:Oossijsas{ies

single group in our national life/' according to
Joseph W. Martin, Jr., Republican leader of the
House, and Congress is the "only" remaining gov¬
ernment agency "not under their control."
♦"This probably is the explanation of the New
Deal anti-Congress tirades and propaganda against
the peoples' representatives," he added.
"If they
could reduce Congress to an impotent forum of
discussion they could reach out and through the use
of blank checks control the purse of the nation;

Thursday, March 16, 1944

THE COMMERCIAL & FINANCIAL CHRONICLE

1122

this

communication

the thought

that it

may

sending
with

you

construc¬

tively reflect to you the views of

throughout the State,
trust that your committee,

banks

the
and

decision regarding
will feel jusified in
taking action to defeat the pro¬
posed measures which we referred
in

reaching

this

matter,

to above."

Volume

Number

159

;tlll§l And japEneseiBepresesilalivesppp,
Impossible For Irish Government To Comply, ■
Says de Valera
p:
p

.Government

"that, the Irish;
and

United States<to neutral Eire

A request by the

appropriate steps. for the recall of German

take

the State Depart¬
ment at Washington, but knowledge of this did not become public
until March 10, when the reply of the Irish Government, written by
Prime Minister de Valera, was also released by the Irish Legation

Japanese representatives in Ireland," was made by

in Washington.
de Valera /said:

•

"The

Government

the

In his reply Mr.*
ardized
of

note

American

the

handed

was

Minister

American

I informed him at once

Feb. 21.

i that the request

it contained was
was impossible

with which it

one

for the Irish Government to

com¬

The Irish Government have
since given
the matter eareful
ply.

and I now confirm

consideration
the: reply
verbally."
In

the

which

then

gave

Eire's

directly

than

State

the

De¬

that its neutrality should not op¬
favor

erate

belligerents, .it has in

fact oper¬

continues to

operate in

and

Axis

the

favor

economy

your

maintenance

national

your

the

One

depend.

gravest and most inequitable re¬
of

the op¬

situation is

this

between Ireland and these coun¬

sults

tries."; The note further said:
"You will, of course, readily

portunity for highly organized es¬
pionage which the geographical
position of Ireland affords the
Akis and denies the United Na¬

understand

why

sons

the

compelling rea¬
as an absolute

ask

minimum the removal of these
Axis representatives whose pres¬
Ireland

ence

be regarded as

must

inevitably

constituting a dan¬
of America sol¬

ger to the lives
diers and to the

of Allied

success

military operations.
"It is hardly necessary to point
that time

out

of extreme

im¬

portance and that we trust your
Excellency will favor us with
your reply at your early conven¬
While it

stated in Associ-

was

Washington

accounts
March 11 that the need for early
and decisive action was empha¬
sized by an official statement,,
that, because of spy activities
based on Ireland "not only the
success of the operations but the
ated

Press

"Situated

tions'

soldiers

are

stake."

Mr.

Valera, it is pointed out in the
same advices, contends
that! Ire¬
land's-counter-spy methods are
and

effective

American

asserted

that

would

lives

lost

through any indifference or ne¬
glect of its duty on the part of
his country.
From these advices
we also quote:
"He

made two other main

also

points: That expulsion of German
and Japanese officers would be a
first step toward going to war
with the Axis, which his country
is determined not to do; and that
he

received

had

States that it did not

the United

intend

from

assurances

Northern

uated

officially

revealed

viewed

gravely

how

Government

Dublin

the

events

the

past

few

traffic

continuous

and

both countries, Axis agents
enjoy almost unrestricted oppor¬
tunity for bringing military infor¬
mation of vital importance from

from

Britain

Great

Northern

and

into Ireland

Ire¬
there

and from

transmitting it by: various routes
No op¬
portunity corresponding to this is
open to the United Nations, for
the Axis has no military disposi¬
tions which may be observed from
and methods to Germany.

Ireland.
not

question the good

faith of the Irish Government in
efforts

its

Axis

es¬

Whether or to what

pionage.

ex¬

suppress

pear

States

open

backed

the United

which

had

American request

the

the limit.

Britain,

and,

ap¬

All of them and possi¬

bly others are believed to be un¬
consideration

der

here

and

London.

They include:
Closing and fully guarding

"1.

the

border

Northern

Govern¬

Dublin

the

with

That Axis

cloak for

and

again."
Prime Minister de
the following to say

over

had

the

beginning, by the
strong observa¬
tion and defense forces, by a wide

and

rigorous censorship of

and

communications, by an exten¬
anti-espionage /organization
and by every other means within
our
poWer, we have endeavored
to prevent the leakage through
Ireland of any information which
might in any way endanger Brit¬
ish lives or the safety of Great

sive

"3.

Clamping

down

eco¬

nomic collaboration with Ireland.
The
of

country

the

British

ah integral part
economic

system

.and dependent entirely on
and American

shipping.

British

"From the text of the two notes

was

sides

clear that the aim on both
was

friendly

the difficulties

solution

which have .jeop¬

real

estimated at

was

which

Hotel

attended

was

men, Government of¬
commercial bankers and

estate

title and trust company men from
all

the country.

over

"But there won't be any

revolu¬

tionary changes, in building at the

said."Custom and
potent market fac¬
tors," This will be partly the re¬
sult of the fafct that buyers are
still thinking generally in terms
of the familiar cottage and not of
he

outset,"

tradition

are

brand new kind of house re¬

some

func¬
Mack

efficient
be, Mr.

of how
it may
pointed out.

gardless
tionally

war

United
the

States

en¬

spirit of
for American
interests has been shown. Ameri¬

scrupulous

same

regard

officials have had

tunity
which

ments

seeing

the

oppor¬

middle price brackets where
production of
houses
will occur
immediately

per

he predicted.
He
"basically, however,

the war,

after

that

added

continuing demand

the long-term

measures

which

that

shown

has

the

wat^^riod, Mr. Mack pointed out
recommended that

that FHA has

Title

emergency.

after

;

Much

the

dropped

pri¬

vately-financed war-time housing
has been built under this section

heavy, the demand for old houses

proportionately light. H.
Walther, Vice-President, Bell

will

cost O.
modern Savings

meet

will

Loan

and

Association,

"As

known to the Ameri- 1 be regrettable if any incident now
it is true that the should alter that happly result.

was

officials,

can

the two para¬
in Ireland last

"The

Government

Irish

activities

landing, and successful

his part

on;

were

ren¬

number of persons,

total

"The

these

inclusive

parachutists,

suspected of intentions to engage
in

espionage, and now held in
Irish prisons, js ten foreign and
These

two Irish nationals.

are

the

and it is

other

country

record of

care

doubtful if any
show such a

can

and successful vig¬

ilance.

Irish

sending

the
the

attached
to

The

it.

and that they
utmost importance

Irish

that

ernment

people;; Their attitude
to be determined

continue

by fear of any measures which
could be employed against them,

feelings of the

this State. Y>

violate
"The

sure

our

Irish

that

the

ment, would

agree

the

Govern¬

that it would

had

fail¬

Minneapolis Reserve District

had only one, the same as in Jan¬

San

had

Francisco
more

Reserve

liabilities

Districts
in

involved

January.

adopted

had

Britain

strictions

tight

prevent seepage of infor¬
mation, in a swift aftermath to
Prime Minister Eamon de Valera's
refusal to oust Axis diplomatic
Eire to

representatives from Eire;

tween

after disclosure
diplomatic exchange be¬
Eire and the United States,

British

"Just two days
the

Government

lands will be granted
business

an¬

"It was
that

except for

work of national im¬

portance.'

reported widely at Lon¬
this was only the first
States .in

neutral

Eire.

release

every

move

was

to
re¬

available ton of

shipping for invasion oper¬

ations."

■

•

"..Y..

;

Mail Service To Corsica
Postmaster

Albert

Goldman

New York announced

that

information

has

March 7

been

re¬

ceived from the Post Office De¬

once,

regular (postal union) mail and
parcel post service is resumed to
Corsica. The rates and conditions

applicable
to

mails

shall be the

same as

mails

for

Goldman's

for

Corsica

those applic¬

Algeria.

Post¬

announcement

also says:
"As in the

case

of Algeria, reg¬

ular mail articles and
for

United

isolate

than

February

These partment that, effective at

advices added:
of

re¬

travel between Great

Allied

not

Districts

in February than in January,

involved

of its

lost it will

indifference or ne¬
duty on the part of

has

City

sociated Press reported that Great

American

glect

any

Kansas
Reserve

March 13 the As¬

From London

plies of gasoline, wheat and coal
for Eire were to be cut sharply

Britain

Chicago, St. Louis,
and San Francisco

had smaller amounts of liabilities

tween the two

attempted
neutrality.
Government
feels

lives

Federal Reserve Districts

is seen that the

peoples."

mental

cause

ican

into

February than in January, while
the remaining districts, with the
exception of the Dallas Reserve
District, which did not have any,

terests is

Irish people

to
failures

Construction

by goodwill and the funda¬
friendship
existing be¬

but

Government do

the

but

$209,000 liabil¬
February, which compares
with 13 with $183,000 liabilities in
January.
Commercial
service

master

note

$304,oOo

ities in

ately, 'no more permits or visas
for travel between the two is¬

welcome the initiative
Government in

from

numbered 19 with

nounced That effectively immedi¬

American

the

from

rose

$391,000.

have

that

they

Irish

lowered

liabilities

Government

the

will

ported that closing of Eire's bor¬
der with Northern Ireland was
under consideration and that sup¬

through

were

able

informed

while all the .remaining' districts
reported fewer failures. When the
amount of liabilities is considered,
it is found that the Boston, New
York, Chicago, Kansas City and

must in all circumstances

the

facts,

involved

States, but they
protect
the neutrality of the Irish State
and the democratic way of life of
ests of the United

Britain and Northern Ireland and

dered impossible.

of liabilities

uary, the Dallas Reserve District
again did not report any failures

are

safeguarding, and will
continue to safeguard, the inter¬

toward Britain have,
during the war undergone a con¬
siderable change,
precisely be¬

Should Amer¬

therefore

single in¬
stance of neglect is alleged and no
proof of injury to American in¬

adduped.

amount

ures

the

number

the

not known- to the American Gov¬

in the note itself not

the

Act.
post-war building boom failures numbered 22 in February
develops along the lines now be¬ as compared with 13 in January
ing generally predicted, the coun¬ and liabilities $369,000 in Febru¬
try may likely find that while the ary as against $105,000 in January.
When
the country- is divided
demand for new construction is
If

fetep decided upon by Britain and

to observe that

The increase in

the dollar amounts liabilities. Wholesale failures de¬
applicable to these creased from 13 to 10 and liabil¬
relative post-war prices, he ex¬ ities from $223,000 in January to
$107,000 in February. In the re¬
plained.
trade
In making plans, for the post- tail
section,
insolvencies

their effectiveness—and

163,000 in

which will be

cept to remark that it is perhaps

satisfactory

$1,708,000 in
involving $4,February a year ago.
422

knows

yet

com¬

—

involving
and

February than in January.
failures
la s t
continuing
market ; with corre¬ ; Manufacturing
month
numbered
32, involving
spondingly less mortgage risk."
Price range must be considered $2,032,000
liabilities,
compared
in rel ative, terms because nobody with 31 in January with $893,000

don

taken

120

low-priced home has the greatest

minimum

the

for

Experience

not wish to comment on this, ex¬

been

February,

according to Dun & Bradstreet,
Inc.,
totaled
132
and
involved
$3,108,000 liabilities as compared
January

they

"have

Business insolvencies in

with

of the National Housing

It will be in the middle and up¬

"The British Government

the

"Since

in the Rules

350 mortgage bankers,

than

ficials,

Britain.

have indeed made favorable

press

■

meeting of the Mortgage Bankers Associa¬
tion of America at Chicago March 3 by Curt C. Mack, Washington,'
D. C. director of underwriting, Federal Housing Administration, thai
divided except the wholesale and
in the nation's first-peace-time year after the war, some 20,000 build¬
retail groups which had fewer
ers will construct between 350,000 and 400,000 dwelling units costing
failures; When the amount of liaaround two billion dollars.
Mr. Mack spoke at the closing session of
bilities is
considered, only ' the
the Association's two-day mort-^
living
requirements. wholesale group had a smaller
gage
conference at the Drake American
It

moment of

"From

;

failures in February over January
.took place in all of the divisions
of trade into which the report is

began met with a similar fate.
The fifth, who arrived during the
first year of the war, remained
at large until Dec. 3, 1941, but
the police were, aware of his pres¬
ence
here almost from the first

over

In his reply

Valera

now

Residential liails First Peace-Time Year

espionage

tions has been demonstrated

present

£'"/ ■

not

against the United Na¬

the

| Business Failures Higher

FUR Official Sees»,KS0 To <80,633

agents dropped here since the war

use

what

consider

market may mean for the future.,

Committee.

and im¬

special privileges

than it solves.

Government

The resolution is

the

sentatives in neutral countries

can

appeared

ceiling

step in put¬

December, they were apprehend¬
ed within a few hours. Two other

repre¬

the
most improbable step of all since
it usually creates more problems
This

ment.

ting

the first

dropped

tered the

rela¬

"This

As regards

munities

promise within, recent years of an
approach to a balanced budget
and putting Federal financing on

stated:

chutists

these

of real estate here in recent years

the na¬
and
the first

'It gives

;
an even keel."
A resolution to
February business failures, con¬
hopes that New York will be put accomplish this purpose was in¬ trary to the trend that has been in
on record by this
session of the troduced in the Senate by Senator evidence
for
some
time,
are
Legislature in favor of such a -Walter J. Mahoney, and in the higher in both number and the
move. A spokesman for the Board
amount
of
liabilities
involved.
Assembly, by Justin C, Morgan.

months.

officials.

such

relation

income.

and the New York Board of Trade

munities customarily accorded to

emer¬

gency military measure.
"2.
Breaking diplomatic
tions

and

Eire

between

Ireland

being urged: by
States,

joy the special privileges and im¬

swept by waves of invasion jit¬
measures

the: Legislatures of other

German Minister had a wireless
Nevertheless, it is a fact that Ger¬ transmitter, but he had been for
man and Japanese diplomatic and
a long time debarred from using
consular representatives still con¬
it and it has been in the custody
tinue to reside iri Dubhn and eni of the Irish Government for some

establishment

further

This action

forces in Great Britain and North¬

Ireland is, of course, impos¬
sible to determine with certainty.

weeks, during which the world
knew only that Ireland had been

"Several

a peace-time basis
employment by industry

itself."

house

in. part:

ters.

V'/Afe;

tional

will

ern

Mr.
panel

survey

its President, Matthew

spending

and full

ing

of
espionage
against
American shipping and American

member of

was a

Chicago mortgage bankers

which

&&&-/(,

reconversion to

tent it has succeeded in prevent¬

acts

.v^VuiWW

■

the most substantial

"We

in close

are

MtetunUtUb+iXtii^y m

reported the results of a
made by 12 members of
the
Chicago Mortgage Bankers
G, Ely, has petitioned the Ne^ York State Legislature to pass the
Association
especially
for
this
resolution supporting the 22nd Amendment to the United States Con¬
meeting. The purpose of the study
stitution. -This Amendment would limit income and inheritance taxes
to 25%.
The Board stated that "such. action would be incontro¬ ityajs; <'■tohse Chi eagera "guinea
vertible evidence that we intend Ao preserve free enterprise/ when pig" to determine the extent of
the price rises for various kinds
this war is over. It would assure$> •
'

important American bases,

with

"Thus for the first time it was

you

Ireland, where are sit¬

activities

invading Ireland.

proximity to Britain, divided only
by an intangible- boundary from

lives of thousands of United Na¬

line hbb 'Mfiseimaiise .s

land

ience."

;

tions.

Chicago, said in his address.
Walther

and

power,

United Nations on
security
and the

the

against

tMtity&m Wlu't

1123

of the

either

pjt|* ,uV

of four

The New York Board of Trade through

desire

action will take the form of sev¬

diplomatic relations

any;>■

that despite; the declared
the Irish Government

parent

Whom

of all

partment we quote, the following:
"It has become increasingly ap¬

ated

note

neutrality

;

point in-four and a half years of
European war."
From the note of the State De¬

partment it was stated that "we
ehould be lacking in candor if we
did not state our hope that this
erance

Upon lesslra! lire Jo Oiast German fJ.Y.

U; & GaBEs

CHRONICLE

THE COMMERCIAL & FINANCIAL

4264

wA Vw 4<> | (l^i!iiH^.

K*t«W*

n.iu»,Wf«rtW

Corsica

weight

and

restriction

parcel post
of normal
dimensions without
to the frequency of

may

Mail intended for trans¬
mission by air shall be limited to

mailing.

letters in
ary

their usual and

No.

ordin¬

form weighing not in excess

of 2 ounces, as
18605

"The

provided by order

of September 4,

1942.
licensing requirements of

the

Foreign Economic Adminis¬
tration
(formerly the Office of'
Economic Warfare) are applicable
to articles for Corsica." T

1124

THE COMMERCIAL & FINANCIAL CHRONICLE

National Bank Receiver ftay Collect Assessment

The Financial Situation
;'..V'

(Continued from first page)

lished

From

rich commonplace that the Gov
meaning for the peace¬ ernment by spending large
life of the nation in the amounts of money helps or

with
time

during the

future.

war are

indeed

little1 stimulates

short of criminal to teach the

business,

The fact of the matter is,

public to believe that there is of course, that programs of
any way under the sun by j the sort here under discussion
which we could produce
pre-j do not, and cannot help, but
cisely what the public wants must act as a handicap to lein
the relative amounts it gitimate
private enterprise,
wants at any such rate as we It is true, of course, that cerhave been producing guns, j tain concerns, sometimes postanks, planes and ships. It is sibly
certain
branches of
still worse to add, as some' business are given a considerhave been doing, that this able fillip in this way.
Office
efficiency in production will: machine makers, for example,
enable manufacturers to sell certainly have reaped a direct
goods at prices far below any and an indirect harvest from
prior to the

common

This

idea

war.

"never

that

again" are we to permit un¬
employment of much conse¬
quence, or poverty on a sub¬
stantial scale, but, on the
contrary, are somehow to
overcome the
shortcomings of
the ages simply because "we
must" in order "to save pri¬
vate
enterprise," is a dan¬
gerous one to be teaching.
There is no way in which we
can accomplish the things we
say we are going to accom¬
plish, that we "must" accom¬
plish, and we have already
suggested what is to be done
in the event we fail. That is,
to enter upon some sort of
socialism

state

which

can

the

New

works.

Deal

Not

all

the

and

all

its

only

does the
itself
require
as many such

Government
many times
machines as

and

ever

before, but

accounts

and

forms

reports required of pri¬
business

vate

multiply

the
need for such machines. This,
however, is a vastly different
thing from saying that busi¬
ness as a

The
can

thus

reasons

not

proposed
In

seek.
matter

why business

the

are

first

what field

not far to

place,
the

peculiarly^

Robert

Associate

erts,

Owen

Reed

Gov¬

enters, (apart frorh
building and a few other

similar activities) it is almost

Court's

tucky, against Katherin KirkpatAbbott, et al.

rick

The

•

involved

case

Banco Ken¬

and organized

of the National Bank of

tucky Co., chartered in Delaware,

the Court announces." The
Associated Press, Washington ad¬
as

Louisville banking houses.

cause
some

the

latter

na¬

tional

bank," the dissent declared.
''Indeed, the history, of banking
legislation shows that Congress
has considered the problems cre¬
ated by the holding company and
not only has failed, to adopt such
a policy as the Court is declaring

notified Banco's stockholders that
he

planned

holders to

policy."

Jackson

were

be at

de¬

toward

the undoing

the

bank

sued

Banco's

from

recover

stock¬

each

his

proportionate share of the Comp¬
troller's assessment.

within the

The Court held

liberty candidly to exercise

discretion

against

Subsequent to this, the receiver
of

Justice

proceed

the bank.

consistent with such

Associate

them for collection of any amounts
which could not be obtained from

but has made other provisions in¬
a

the

risks> of

case

liable

remains

'stockholder'

holder'

within

the

'share¬

meaning

these statutes to the extent of his

the

underlying shares

For he retains

trol and other benefits of

ship

con¬

owner¬

without

substituting in his
who is responsible
for the risks of the banking busi¬
stead

any

one

ness."

■

The

point on which the minority
sharply attacked the Court's de¬
cision turned

the fact that dou¬

ble liability was applied not only
to Banco stockholders who held

their securities in exchange for
appointed for the Bank of Ken¬ the bank's stock, but to non-bank
tucky as well as for Banco. The stockholders who purchased Banco
following year the Comptroller of shares for cash;
the Currency assessed the bank's
"Stock purchasers for cash have
shareholders
for
$4,000,000 and at no time owned a stock that pur¬

be¬

corporation held

all of the stock of

these

exchange for its own. In
November, 1930, a receiver was

assessment

Banco
banks'

most

shares in

corporation
banking association

shall be liable to

Kentucky

acquired

minority:
-Congress nowhere* has said that
not

by the management

and the Louisville Trust Co.—both

follows

the views of the

that is

Ken¬

with

commensurate

those holdings.
"In such
a

interest

Bank

such

the stockholders

cluding control, he cannot escape
the statutory liability if his trans¬
does
not
have
resources

feree

of the bank.

National

impe¬

tains through his transferee an in¬
vestment position in the bank, in¬

ceiver of

unable to find that Congress "ever
announced
a
legislative policy

i f responsible ► or

tices dividing 5 to 4, on the ques¬
tion raised in A. M. Anderson, re¬

Rob¬

Frankfurter concurring, contended
in their dissent that they had been

vices, further indicated

decision

handed down, with the Jus¬

was

Felix

and

Supreme

out

"But where after the sale he re¬

The

Jackson, with

Justices

Stanley

that

the record

may sue

actual
tional

Banco constituted

to the

effort to avoid double
not

shares
the

That

sessment.

Judges.".
/
The Court, he asserted, is pro¬
fessing to impose the liability "no'
as
a
matter of Judge-made lav
but as a matter of legislative pol¬

owner

bank

receiver

owner

the holding company." But he said
the dissenters were of the opinior
that "no such latitude is confldec

na¬

statutory

the

as¬

creation

"sham"

reasoned

liability

"one

that

ported to
the

was

But

who

double liabil ity,"

carry

minority

Justices

declared.

"On the contrary, by the terms of
the
stock
certificates
and
by
the law of the corporation's be¬

ing, their shares

were

and non-assessable.

fully paid

These stock¬

holders cannot be said in any way
to have assumed any express or

implied
liability.

the

involved, the Court said.

contractual

assessment

"No statute of the United States

and

then

applicable

State

statute

since has purported to im¬

pose a double liability upon these
holding company shares. No con¬
trolling precedent in this Court at

the

these

time

chased

stockholders

pur¬

since (until today) pur¬

legally irresponsible cannot be al¬

ported to attach

lowed

nearly so well as we' certain to be
competing di¬ icy" when "it cannot cite so mucl
have always done.
There is
rectly or indirectly with pri¬ as a statutory hint of such policy.'
no need to be figuring how
By its decision, he said, the
vate enterprise.
Now private Court is
making the holding com
many houses,, how many auto¬ business can not
never

■

province of the Court "we could

ernment

road

Justice

clared that if it

Why

stimulated

field

within
legislative
rather
than
judicial competence." The minor¬
ity opinion, written by Associate

whole has benefited.

The Reasons

Holding 0os. For Bank's Creditors

banking,

liable because his transferee turns

cunious.

The United States Supreme Court in a 5 to 4 decision on March 8
held that a receiver of a national bank
may collect an assessment
from stockholders of a holding
company for the benefit of the bank's
creditors,. The four minority Justices in criticizing the views of their
five colleagues declared that "the Court is not
enforcing a policy of
Congress; it is competing; with Congress in creating new regulations

in-

1944

Thursday,; March

to such shares."

from

the

serve

insulator

liability, whether that

purpose

was

merely the effect

of the arrangement."

The

majority decision, written

double liability

While the minority stated that
holding companies "as utilized in
this country" have been "with a
few exceptions, a menace to re¬

operate upon pany a "windfall" to bank credi
by Justice Douglas, denied that sponsible management and sound
President's
quarterback tors^lby^extendingThe. liability1l, the effect of its .ruling was that finance," the Court is given no
and that will be "needed" in
persons
never
otherwise reach
every stockholder
of a national such "latitude", as is here exer¬
theory.
It must invest sub¬

mobiles,

how

the first two

much

this the

three peace

stantial sums of money in its
We shal "need'' a
enterprises, and it must be
good deal more than we shall able to see conditions reason¬
have under any system that
ably favorable to its opera¬
we may adopt—that is,
many tions for a number of
years
people will want more and to come at the
very least.
If
often, doubtless, would be it is
eternally fearful that the
more comfortable with more.
Government may move into
There will
years.

likewise be many
its field and operate without
individuals who will not earn

a
profit, or at a substantial
determined loss in
competition with it,
to introduce some new social
there is no basis upon which
system in this country be¬ it
may proceed.
Again, the
cause
they do not get what
Government, if it is to "aid"
they do not earn, and if the
private enterprise in the way
rest of us are ready to permit
mentioned, must have the
them to do so, then there is
funds with which to do so.
not very much hope left of
This means that it must either
moving forward in this coun¬ tax them
away from private
try in the future as in the
enterprise or create them by
past.
fiat.
Either

more.

they

are

"Helping" Business
Quite

procedure must

necessity discourage, not
most encourage private business.

able."

take

the

He predicted that it woulc

lot

one

made today.

the

majority ruling

held that shareholders of
stock
to

bank who sells his shares remains

it
a

To Confer On Present And Post-War Problems

was

bank-

Of Air Oonisierce Al N. Y.

holding company are subject

double

liability under Federal
laws, although the charter of the
bank-stock company provided that
stockholders "should not be sub¬
ject to the payment of corporate
debts to any extent whatever.'
Advices to the New York "Journa'
of Commerce" from its Washing
ton bureau March 6 in reportinr
this also had the following to saj
regarding the conclusions of the
majority:
"The policy underlying doubh
liability is an exacting one," the
Court said.

"Its

defeat

cannot

For the first
customs

history, foreign freight forwarders,
brokers, carloaders, and others interested in shipping by air,

Athletic Club.
ness

3nt

Air

Attendance is expected to be large due to the
unique¬
approach to the pres--$—
—
—
and
post-war problems
Gair
on
Co.
(shipping containers);
Commerce.
A panel of ex¬
J.
H,
of the

from

perts

terested

the

trade

airlines

and

in¬

being
brought together by the Aviation
groups

are

Section of the New York Board of

Trade, under whose auspices the
conference is being held.
John F. Budd, editor and pub¬
lisher of "Air Transportation" and
chairman of the Aviation Section,

State'.'

will

preside.

trade

and

chosen

for

Among the foreign
commerce

leaders

the

panel are: Harry
Barr, President of Barr Ship¬
ping Co. and President of SteamK.

possibly the
dangerous of all these cur¬ The most valuable assistance
tfiip Freight Brokers Association,
concerning national banks whicl
rent suggestions about
rnc.; Fred Bennett, partner of M.
post¬ Government can give private Congress has announced."
I. Corbett & Co. and President of
war
policy is the thought business is to keep the rules
the New York Foreign Freight
that private enterprise
may under which it must operate'
undergone the process, must, Forwarders and Brokers Ass'n,
need help to create the condi¬ as
simple, as just and as stable so these planners seem to sup¬ Inc.; Theodore Mercer, Vice-Pres¬
tions we in our wisdom have as
possible—and then keep pose, be industrialized at once ident of the Hudson Shipping Co.
and Vice-President of New York
concluded are essential.
The out of the
way.
Any other to the immense profit of the Customs Brokers
Ass'n, Inc.; Wal¬
notion
appears
to ; the un¬ program, no matter by what American and the
happiness ter Hedden, Director of Port De¬
thinking to be so plausible, name it may be called, will unbounded
;of the native. velopment, and James Buckley,
the error in the
reasoning is not help, but hurt business.
That this is a childish concep¬ orincipal economist of Port of
so

subtle, and the approach is

one

which the

enterprise

of free

enemy

can

use

Another strange set if ideas
those which
assign

are

without culiar roles to

pe¬

our

the

situation

scarcely be asserted.

need

Indus¬

foreign pol¬ trialization may or may not
doing injury to the feelings icy in creating this wonderful be profitable to any one, de¬
new world
envisaged by the fending upon many consider¬
system—the friend who is dreamers. "Industrialization" ations—and
certainly world¬
likely if he is not on the alert has become a word to conjure wide industrialization of the
of the friend of the American

pay
for
his
through the nose.

Deal

has

made

with.

■

New

tion

York

Authority; George F.
international trade con¬

Bauer,
sultant
M.

Mayer,

press

air commerce;

Chester
President of Air Ex¬

International

Agency, Inc.;
Lyall,
eastern
traffic
manager of American Airlines and

Herbert

Chairman

the

tion's Committee
ators:

Aviation

Sec¬

Airline Oper¬

Lyle
C. Ray, Executive
credulity
India, Africa, and, in¬ sort suggested " these y days
Vice-President
of
the
Aviation
The New deed, nearly all parts of the would leave us
looking for Packaging Co.; J. D. Malcolmson,
the idea so
globe which have not already markets.
technical director of the Robert

looting

their

a luncheon conference with air
cargo experts of the various
serving New York, Railway Express Agency and other trans¬
portation agency officials on Thursday, March 28th at the Downtown

chartering powers can "endow itr
corporate
creatures
with
the
power to place themselves above
the Congress of the United State'
and
defeat
the
Federal policy

airlines

ignorance."

The Court denied that

time

will hold

encouraged through the utilizatio)
of financial devices which put {

premium

cised.

decisions to clarify

Butler, traffic executive,
Railway
Express
Agency,
and

other,!.

The advices from the New York
Board of Trade state: "The occa¬

sion

will

serve

break

down

false

conceptions about air
cargoes, their size, place in ship¬
ping
and
amount
of
possible
some

traffic and

to give the airlines a
acquaintanceship with the

trade
men

who actually do the business

air

shipping.

Handling of air

cargoes on a lare scale within the

Port

New

York

will also be
told by authorities from the New
York City Department of Marine,
and Aviation and the Port of New

York Authority."

Mpls. Reserve Staff

Appointment
terer

Oscar

Lit-

statistician of the Minne¬

apolis Federal Reserve Bank
announced

March

was

by Dr.
Arthur R. Upgren, Vice-President
and

economist

the

bank,

ac¬

cording to the Minneapolis "Jour¬
nal," which further said! "At the
«ame

time he named Franklin

L,.

Parsons

as agricultural economist
of the bank. Mr.'Litterer
formerly

research
economist
of
the
Committee for Economic
Develop¬
ment of New York
City, while
Mr. Parsons has been
was

Associate

Professor of Economics at
Kansas

State

College."

Volume

international Conferences On Money, Oil,

Shipping And Aviation Planned

NY Trade Bd< Petitions
Dr.%ahr Sees Danger in Declining Reserve
Ratios!^ Treasury Financial Domination Assembly To Pass

first

move¬

example of the latter, overvalued

the form of gold

silver certificates have been going

opportunity, and these

ments may take

the

rather

structure

exports. In addition, our gold will

into

tend to move out for a multitude

Correspondent,
'

Telegram" by John A. Reichmann, United Press Staff

Trade Practice

(Continued from first page)

Reporting that a half-dozen international conferences, on the
problems of post-war world reconstruction, many highly controver-:
sial, were emerging from diplomatic gossip into reality on March 8,
advices from Washington on that date to the New York "Worldstated that these conferences, designed to pave the way to lasting
World peace, involve:
"1.
Maintenance
of

1125

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4264

159

steadily under pressure of the sil¬
ver subsidy policy.
"Perhaps the most important
case of bad practice permitted by

of other purposes
same

because of this

pressure.

reserve

Matthew

President

Ely,

York

New

the

Board

Trade,

has

petitioned the Assembly to
the Trade Practice Bill which
would
outlaw fake
wholesalers
pass

and those who offer merchandise
meeting on oil re¬
"Most of these pressures are
announced yesterday, operating in the'direction of a fur¬ Congress is the injection of $660,- under other false pretenses. Mr.
that
a civilization highly dependent on
by Acting Secretary of State ther and; perhaps unexpectedly 000,000 of fiat paper money intc Ely acted by direction of the
oil can survive despite the heavy Stettinius. It will be held in Wash¬ sharp decline in the reserve ratios the reserves of the Federal Re¬ Board of Directors which, though
ington soon and will be strictly in the Federal Reserve/banks. The serve System by the manipulation representing many lines of busi¬
consumption of oil in the war.
ness,
voted
overwhelmingly in
"2. Stabilization of world cur-, Anglo-American.
edging • of the Federal Reserve of these notes by the Treasury
favor of the principle of this bill.
"The monetary conference in
rencies to prevent peacetime eco¬
banks, by the Treasury, out of and Reserve authorities, beginning
nomic warfare.
The recommendation was made
early spring will involve chiefly proper performance of their func¬ Dec. 12, 1942.
"3.
Plans to assure the world this country, the United Kingdom.; tions is. fundamentally an unsound
"By that juggling, sleight-of- by the Board's Central Mercantile
'freedom from want' and 'freedom and Russia.
piece of business! In the end, the hand, 'retirement' before issuance Section. Leonard Ginsberg, Pres¬
from fear' through an enlightened
"Freedom from want and fear American people apparently will transaction, the Federal Reserve ident of Hearn Department Stores,
approach to labor problems and will be dealt with in a quasi- have to learn this lesson the hard Bank notes (National Currency Inc., as Chairman of the Section's
social security.
official way at Philadelphia, be-j way.
The Reserve banks should notes) were made assets (lawful Executive Committee, presented
"4, Maintenance of peace and ginning March 20, when the In-j be in a position to exercise their reserves) of these banks, and ir the matter for action by the gen¬

first

"The

adequate

world petroleum reserves so

serves

order

ternational Labor Office holds its

during the transition from
peace by providing reha¬

war

was

bilitation of liberated areas.

few
Treasury
domination and control and inter¬
ference t should
be reduced and
normal

It will pre-<

26th annual meeting.

resolutions to guide govern-'
in dealing with post-war
problems of unemployment and;

pare

"5.

Disposition of the world's
shipping lanes and of the huge

ments

fleets

social security.

created

move

and

men

material to the

fighting fronts in
to safeguard the
whose economy is built on

such

"A.

manner

second

very

■

political issue, is evolving around
its own right to dip into world
air
traffic and to
compete for
trade on an equal basis."
The
:

advices

which

from

'Little is known about the

"This

ship-!

Life Insurance Companies Paid

with

insurance

owned by service men

———

—!

is a bad'piece of busi¬
ness at any time; but it is doubly
bad when the reserve ratio is fall¬

fiat money

need

large

bulwark

protection

At the

claims

and February, 1943
was not competent. The Congress
men
were
overwhelmed
wit!

the

benefits

the

life insurance companies. Prelim^-

inary estimates indicate that the
increase in civilian mortality on
the
to

front contributed

home
last

year's

benefits than did the
among

increase

war

technicalities thrown at them bv
the Reserve and Treasury official*

picture.

Congressman take the
Federal Reserve Bulletin for Jan¬
"Let any

Farm

Federal Reserve Bank notes, anc
how the volume of these note'

in circulation has

increased ever^

1942
(The February, 1944, Bulletin, be¬

month, beginning December,

Security
Congress

which

Administration

of Money in

67),

see

"parent" organiza¬
tion, the CIO, it has been agitating

Along with-its

the

the- table
Circulation'
look at the column or
consult

1944,

"Kinds

Farmers':

to" maintain

bluffed out of the

and effectively

cause

changes in tables, if

of the

If is

Washington

death
claims

service men.

leadership, such

Analysis of the claims paid dur¬

those who pose as

merchants but practice the wiles
of the imposter.
It. wiR assure

payment to the city, the State and
the Federal Government of their
share of sales taxes, business turn¬

taxes, income taxes and the

over

The

ppblic, the merchant

Government have everything

gain and nothing to lose in the

enactment of this

prompt

meas¬

ure."
,

Mr. Ely's telegram to the mem¬
of the Rules Committee of

bers

the Assembly read as follows;
"The Directors of the New York

overwhelming

Board of Trade by

unqualifiedly endorsed the
purposes and principles of pro¬

vote

York

New

posed

Trade

State

Practice Bill which

seeks to

vent serious diversion

pre¬

business
legitimate channels of retail

from

It would materially

distributioin,

benefit

well as .large
established retailers/It

consumer as

and small
would

protect

Federal. State and

from

City
Governments
losses."

tax

Ahead Of The Dews

appreciable part of

death,

total

January

(p.

year.

down hard

and

Union' gets its financial
siipporT TFhhT this CIO gravy.

From

time, the Institute
war-caused
death
service men have not

same

yet been an

waterec

not so useful since it obscures the
commentary on the oper¬
facts.)
Then let him look a1
ation of this well-greased "move¬
"Treasury Currency" on the same
ment" that both the CIO and the
page and he will see that these
"Farmers Union" professed indig¬
notes
are
Treasury : liabilities—
nation over the recent appoint¬
not
liabilities
of
the
Reserve
(Continued from first page)
;
ment "of W. L. Clayton to be the
swollen wages, they should get in;
banks as they are legally supposed
surplus
materials administrator to be while being issued.
on the gravy.
Ther
under the Baruch report.
Mr.
the Congressman should look a'
They are in the same boat, the,
New Dealers and the CIO are.
If Clayton, they pointed out, is or the last line of the footnote at the
was the
largest cotton producer
Mr. Roosevelt fails in his Fourth
bottom of the page: There he wil1
in the world, a conservative who
Term try they both go down to¬
find it said that "Federal Reserve
contributed to Willkie's 1940 cam¬
Bank notes and
national bank
gether,
There are
some
old-!
paign.
timers in the CIO
notes are in process of' retire¬

out,
on

reserve*

not special¬

are

'tell the truth' in offer¬

nessmen

like.

would like to abolish.

for

those at home."

pointed

uary,

half of the

concealed

carefully

now

those who

ists. The law 'Will insist that busi¬

investigation made by ?
few members of Congress of thi*
Federal Reserve bank note affair

-picture—permit¬
by Congress. As an

forced

re¬

It will prevent deception and

fraud

milk!

and policies.

Pany" for othfer agitating groups.
It is a fact that the much-touted

the last

and when
be
good—not

rapidly

ing

icies

Reserve

Federal

the

ted

it.

and

ing merchandise to prospective
buyers. Honest businessm en have
nothing to fear, but it will clamp

every

illegal transaction on every count
"Watering down the reserves o'
Federal Reserve banks will

in the monetary

r--.

Institute

the

illegal

"The

Claims on those killed in action
said.
"The
service men own a large-aggre^ .increased^lrom., 1^900^00
under;
1,460 policies in the period up to
gate of this civilian life insur¬
ance,
maintained from pre-war the end of 1942, to $6,500,000 un¬
days, in addition to their National der 5.100 policies in the first half;
Service Life Insurance, the com¬ of 1943 and $9,600,000 under 8,840;
bined protection giving them a policies in the second half of 1943.;

home,"

standards

Government, the taxes due

from

policies in the first half of 1943
and $24,300,000 under 19.400 pol¬

is making

an
important contribution to the
security needs of dependents at

—

the

"Another matter to which, Con¬
$41,800,000 were paid in 1943 by American;
life insurance companies under 31,600 civilian policies owned by; gress has persistently shut its eyes
members of the armed forces and merchant marine,' it was announced; is the- diluting, of the reserves of
on March 7 by the Institute of Life
Insurance. This brought the; the Federal Reserve System. This
aggregate death claims on service men since the start of the war to is another instance of too much
$59,400,000 under 43.500 policies. The announcement went on to sayr United States Treasury influence
life

for reserves

business

banks tr
the extent of $660,000,000—also an

Watering or Diluting;the -Reserves
of Federal Reserve Banks

In Dealh Benefits To Service Lien In 1043

civilian

turn to

Total death benefits of

"The

raise

count—the
Treasury, by. this same transac¬
tion, handed itself a deposit credi"

that for international
currency stabiliza¬
tion, and so on, should suggest the
wisdom of pulling up sharply and
taking a good look at this trend
of programs

Speaking on this.subject. Mr.
Ginsberg
stated:
"This bill,
if
enacted, will protect the public,

Reserve authorities

transaction

rehabilitation,

$41,800,000

be¬

issued.

money

and

gram

aviation conference."

quote added:

are

While the Treasury
gave the
Reserve banks $660,000,000 of fiat

have
the Treasury contribute millions
and billions of dollars to this pro¬

"Joseph C. Grew, former Am¬
bassador to Tokyo, will head the

they

eral body.

ing

the consideration of plans to

discussion.

under

picture,.-combined

Reserve

note?

and

ping conference other than that it

at that

money

Bank liabilities while

supposed

are

ficially low interest rates continue
nations
bilitation Administration Council; much longer, with the Reserve
world shipping.
:
(
is scheduled for not later than authorities i merely the. puppets of
"6. Arrangements for post-war
June.
It probably will meet in* Treasury policy, we are headed
aviation, a topic enlivened by the
for serious! trouble..
Montreal.

fact that in almost all countries

fiat

whereas under the law these

Relief and Reha¬

United Nations

form

the

finally eliminated as rapidly as
possible. A
/
"If Treasury control and arti¬

the

meeting

controls, with
exceptions.

war-time

February Construction
Contracts Above Jan.
Construction contracts awarded

during February totaled $137,246,000 in the 37 eastern States, ac¬
cording to F. W. Dodge Corpora¬
tion

.in

This

13.

public

made

report

Mavrh

was

average

$6,238,000 per working day and
slightlv above the January

was

In short, the table will daily average. The Fpbruarv total,
Nothing came of the protest and ment."
ing 1943 on service men shows
the ' shrewder; observers
of the' show him that the Federal Re¬ however, was 65% below the cor¬
that 13,940, involving $16.100",000
Washington scene noted that the serve Bank notes in circulation
ones who would be sunk are the
responding month last year.
in benefits, were on the lives of
intellectuals—the professors, the indignation seemed to be of the are steadily increasing while the
rvptracts let for heavv-erwinpolicyholders
killed
in action
Mr. footnote says they are "in process opWp«
sociologists and the economists; tongue in. -the cheek kind.
These represent only 1.5% of total
work were valued at, $55,who have saddled themselves on' Clayton's appointment was a very of retirement."
Then the Con¬
life insurance death benefits paid
116.000 as compared with $50,333,this "labor" movement to the dis-; conservative one and undoubtedly gressman should ponder that!
n00 in
in the same period.
the preceding month and
made as a gesture to the con¬
"This conflict of assertion wH.h
12.981.000
in
Deaths from accidents or other, gust of the AFL trade unionists
February,
1943.
and who are responsible for its servatives/
But the fact is, of fact grew out of the Reserve of¬ Ruth building clarifications were
external causes resulted in 13.010
course, that the question of who
ambitious
ramifications. '
These;
ficials' contention, while being in¬ below January, 1944 and February,
claims for a total of $17 600,000 or
taxed war workers are, in fact,! is surplus materials administrator
vestigated in Januarv-February 10/1*3 with valuation totals of $57.1.6% of total U. S. death benefits!
affording a haven for one of the: will not be so importarit for sev¬ 1943,
that they 'retired' these 269.000 for non-residential and
paid.
most interesting collections you; eral months and when-it does be¬
notes before they were issued by "^4.861 000 for residential build¬
Deaths from diseases among the
important, Mr.' Roosevelt
have ever seen, including defeated come
the Treasury!
ing.
Numbers of new dwelling
service men accounted for 4 650
politicians and frustrated.' bureau-' could - very : easily make a change.
"Next, if he thmks it proper for ""'h created during the month,
claims in an aggregate of $8,100.-,
Phil Murray, who undoubtedly
would
fit into the AFL;
The
as

crats.

000 or 0.7 % of total

death benefits

paid in the U. S.
under policies on the

lives of service

men

amounted to

3.8% of the total U. S. death ben¬

under all life insurance

efits paid

in force.
More
benefits

months

have
the

was

men

than

40%
the

paid

of 1943.

lives

the

death
service

last; six

These payments

consistently since
the wan. with $17.-

increased

start

was

an-! This is

war

bonanza.

The

(

front

CIO

Congress.
of

the

has

the
It

soldier

been

\ !:

in the fore¬

become

ing to

the

reasons

Con¬

determined

the Treasury to

let, him

vote

agitation and

the

holding

corn-

Baruch

the
or

program..:,

it would

teresting story, indeed.

notes

under

Ponre^eutativn

questioning

Frank

bv
Keefe or

Subcommittee of the House Co^mi+tee

Appropriations, Jan. 18

preciselv that
unsecured
United

1943, that they are

—just

aI«o. represented

from

10 577

States notes.

"With these

and

the

a
d^op
preceding

24,703 in February

ago.

year

a
\

are

Wisconsin, at hearings before the

;

should get into the
dpvploo a very in¬

these

conceded,

„

Congressman

not Pat
money, let him look at the admis¬
sion 0f the then Acting Secretary
of the Treasurv, Daniel Bell, who

thinks

7,138,
month

the

"FinaRv,

the. Administration's

If Congress

CIO

plan

ismie these notes

read the Federal Reserve

Act.

It should be noted

play..

nounced

deed,

$17,500,000 under 12,200

Very

that Mr, Roosevelt has not yet an¬

campaign
againstthe spearhead •his, pwn

1942;

was

in the support of subsidies. There
is the impression that it has. -in¬

paid under 11.900 policies

in the entire nen'od uo to the end

600.000

one

Congressman! gress-is

Illinois, had be¬ write- its own reconversion pro¬
come
the
CIO's
The purpose of
"political" ad¬ gram; into; law/
viser.
When Congress succeeded the CIO-Farmers' Union propagandists fn protesting Mr. Clay¬
in getting C. B. "Beanie" Baldwin
out of the Farm Security Admin¬ ton's, appointment,-was to further
istration. he landed up with the advertise the conservative gesture
CIO.
These are but two of the' involved and aid in the deception
which the Administration is try¬
many New Dealers now in on this
McKeough,

Combined, the 1943 toAal death
benefits paid

Only recently

nounced that former

mailable,
get

Confess

awav

the

with this manipulation

—uerhans the worst one that has
eve**

marred the monetary

this
"It is

f'ne illustration of what

ryi—Uvtict—of: vn
virU-.+

history

country.

urirlnr

if there

are

gcm»-<cipc:

thn

fuse the

ean

Gnricrr«<?s

sufficient technicali¬

ties thrown up to distract

facts and admission

let

still

R<^s«rve authorities

pud

uvoocnrv

and

busy Congressman."

con¬

ber tracts and

revised

essential

list

activities

logging

camps,

cut¬

explosives and components of ex¬

syn¬
ting of pulpwood, wood for tan-; plosives,; synthetic - fibers,
ning' extract, charcoal, sawmills, thetic rubbers, plastics materials,
non-coal-tar
intermediates
and
veneer, cooperage-stock, planing,

released on Feb. 25

was

Thursday, March 16, 1944

& FINANCIAL CHRONICLE

THE COMMERCIAL

1126

by the War Manpower Commission. All changes up to and including and
plywood mills, raising of tung
Jan. 15, 1944, are included, says the Commission, which states that
oil
trees; fire prevention,
pest
announcement of the changes have been made from time to time
control; forest. nurseries and re¬
but this is the first complete list published since December, 1942.
forestation services; gathering of
The Commission likewise says:
'
*
gums and barks for the manufac¬
The list serves
as
a
general
—■ .■ .1—r

guide

which manpower pro¬

upon

for allocating labor to the

grams

different

needs

based.

are

primarily designed for use of the
United States Employment Service
and the Selective Service

The

stabilization
the

employment

set forth

of WMC

programs

conditions

System.

which

under

workers

transfer from job to job, the
conditions varying in accordance

may

ture of naval stores and medicinal

descriptive of the types of activ¬
ities regarded as essential.

purpose:.

8. Conduction

Highway and
street construction; marine con¬
List of Essential Activities
struction;
construction
of
ap¬
1. Production of Aircraft and
Parts
The production, mainte¬ proved industrial plants, houses,
hospitals, and military projects;
nance,
and repair of aircraft,
repair of such facilities; and ser¬
gliders, parachutes, dirigibles, bal¬
vices necessary to complete such
loons, aircraft engines, aircraft
'

V'i'vV'

k>'!£'•'•'

'><•*

".-

V'/

—

parts,

pontoons,

propellers,

and

construction.

solvents

and

miscellaneous J- or¬

ganic chemicals; gum and wood
chemicals;
plasticizers*;, rubber
chemicals, and tanning extracts.
Drugs,
medicines, and
insecti¬
cides: Drug grinding; crude bo¬
tanical
drugs,
botanical drugs,
derivatives, and synthetic equiv¬
alents, biological products, drugs
of animal origin, pharmaceuticals
for use in proprietary remedies
and
prescriptions, ' insecticides,
fungicides,
fumigants,
rodenticides, and laboratory animals for
biological and pharmaceutical ex¬
perimentation.
Heavy inorganic
chemicals:
Acids, alkalies, car¬
bonates, and miscellaneous heavy
chemicals.
Industrial, industrial
.

dungarees,

overalls, ribbed hose;

(b) age 6 through age 16—cover¬

alls,. crew sox (boy's), dungarees,
overalls,
shirts
(boy's),
work
gloves (small, medium, large).
of

Production

22.
and

Glass

and

Products

industrial

Stone* Clay
Scientific

—

glass

products;

acid-proof brick, firebrick, and
other
heat-resisting clay prod¬

lime;

chemical

ucts;

abrasive

cloth and
related products;' asbestos > preci¬
ncts including steam, and other
packing; pipe and boiler covering;
wheels,

stones,

crucibles

paper,

and

retorts;

gypsum

board; mineral wool (for insula¬
tion );
procelain electrical sup¬
plies; as well as parts of military
apparatus

9. Coal Mining—The mining of
23.
Production of Petroleum,
Boats, anthracite, bituminous, and semiNatural-Gas and Petroleum and
anthracite coal, lignite, and peat,
has been or is currently employed
and Parts—The production, main¬
Coal Products — Drilling, rigand the operation of breakers or
in an essential activity.
The list
fine and related inorganic chem¬
tenance, and repair of ships, boats,
is used by USES offices in de¬
building, and maintenance service
preparation plants. Includes also
icals; inorganic compounds. Fer¬
ship and boat parts and equip¬
operation and petroleum refin¬
removing overburden and other tilizer
termining the essentiality of the ment.
materials;,
nitrogenous,
such activities preparatory to coal
worker's
ing; Includes also production of
employment.
Selective
phosphatic, and potassie fertilizer tar and
3. Production of Ordnance and
pitch, coal gas, coke, and
Service Boards use the list in re¬
miping operations.
materials, mixed fertilizers, or¬
Accessories — The
production,
liquefied petroleum gas.
viewing requests for occupational
10. Metal Mining—The mining
ganic nitrogenous materials, and
maintenance, and repair of fire¬
deferment.
24. Production of Finished Lum¬
of iron, copper, tin, lead, zinc,,
agricultural 1 i m in g materials.
guns,
howitzers, mortars,;
An Interdepartmental Commit¬ arms*
aluminum, mercury, manganese, Paints, varnishes, pigments, and ber Products—Cork products such
gun turrets and
mounts, tanks,
tee
on
Essential Activities was
chromium, molybdenum, tungsten, allied products: Color pigments, as life preservers; storage battery
established by WMC in July, 1942, sighting and fire-control equip¬ vanadium and similar
ores, and
ester gums and resins, thinners, boxes; insulating material; cars;
ment, Torpedo tubes, and similar;
consisting of representatives of
the dressing of such ores. Includes
paint dryers, wood fillers and matches; crutches; caskets; wood
product:.
WMC, the Selective Service Sys¬
also removing overburden* sink¬
whiting. Compressed and lique¬ preservation activities; buildings,
4. Production of Ammunition—
tem, the War and Navy Depart¬
ing shafts, and other such activ¬ fied gases: Gaseous hydrocarbons, portable and prefabricated; wood
base
hardboard.
Includes
also
ments, the War Production Board The production of bombs, mines, ities preparatory to metal mining elemental
and
nonhydrocarbon
and the Department of Agricul¬ torpedoes,
grenades,
chemical operation:.
wooden parts of aircraft, ships,
gases. Vegetable and animal oils
ture. This committee is authorized warfare
projectiles,
explosives,
and Other; military equipment,
11.
Nonmetallic
Mining
and and fats: Animal oils and fats;
to make a continuous review of fuses,
pyrotechnics, as well as
25. Production of Transporta¬
Processing and Quarrying— The vegetable
oils.
Miscellaneous
the
and
activities
occupations products such as glycerin which
mining, processing, or quarrying chemicals and chemical products: tion Equipment—The production
classified as essential and to make go into the manufacture of am¬
of salt, gypsum, phosphate rock,
Bleaching, compounds*boiler treat¬ of motor vehicles such as trucks,
recommendations as to the con¬ munition.
sulphur, potash, asbestos, graphite ing compounds, catalysts, chem¬ ambulances, fire engines, busses
tent and use of the list. Since its
5. Agriculture and Commercial
ical
cotton
pulp, ■ emulsifiers, and military motorized units; es¬
pyrites,
graphite,
borates
and
establishment it has met regularly Fishing — (a) Agricultural Prod¬
other salines, fluorspar, mica, talc, matches, oil treating compounds, sential parts and accessories of
to carry out its functions.
ucts—Livestock
and
livestock
abrasive sands, calcite (optical), photographic and pharmaceutical such motor vehicles; motorcycles,
The Committee has followed the
products,; including beef cattle, and similar essential
gelatin*synthetic resin .adhesives bicycles, and parts; locomotives
products.practice of requesting the partic¬ dairy cattle, hdgs, poultry* sheep,
and
glue,
analytical
reagents, and parts; railroad and street
12. Smelting, Refining and Roll¬
ipation of representatives of vari¬ and goats; fiber, oil crops, and po¬
water
treating compounds, and cars, and equipment.
ing of Metal: Scrap Salvage—Pri¬
ous governmental agencies in the
tatoes,
including
castor
beans,
wetting agents, including sulfon¬
26. Transportation Services—Air
consideration
of
activities, and American-Egyptian,
Sea
Island mary and secondary smelting, and ated oils. (Fireworks, pyrotech¬
transportation; line-haul railroad;
alloying,
rolling,
and
occupations in which the respec¬ and Upland cotton, flaxseed and refining,
drawing of iron, steel, copper, nics, and flares are included with switching and terminal; railway
tive agencies have a special re¬
soybeans, hemp,
peanuts, Irish
ammunition in Group 4, salt and and air
express; freight forward¬
sponsibility.
Representatives of potatoes, and sweet potatoes; field lead, zinc* magnesium, aluminum, crude
sulphur in Group 11, and ing; rail inspection; maintenance
industry, trade associations, and crops, including barley, dry field brass, bronze, nickel, tin, cad¬
magnesium metal in Group 12.)
and repair of railroad equipment,
mium; ferro-alloys, and any other
other
organizations wishing
to peas, oats, rye, wheat,
alfalfa
18. Production of Rubber Prod¬ buildings, right-of-way, and roll¬
metals used in the production of
make recommendations concern¬
hay,
alfalfa,
hay
seed* cover
ucts—All rubber products.
war materials; and scrap salvage.
ing
stock; ■ local
transit,
rapid
ing the lists have been required crop seed, broomcorn, corn for
19. Production of Leather Prod¬ transit*;: interurbah electric rail¬
to submit their recommendations
13. Production of Metal Shapes
grain
and
silage,
dry
edible
way, and over-therroad bus; off¬
in writing, "although members of
and Forgings — The manufacture ucts—The production of shoe and
beans,
green
peas
for
proc-:
shore
and
intercoastal
water
the committee and its technical
essing, rice, sweet corn, hybrid of castings, die castings, forgings, belting leather; industrial belting
including
shore
for transmission* of power; sad¬ transportation,
staff have been available at all seed
wire nails, chains, anchors, axles,
corn, grain sorghum, tame
service such as, stevedoring and
times for conferences.
Provision
hay and seed, wild or native hay; pipe, springs, screws, bolts, tubing, dlery,' harness, and accessories; harbor
operations; pipeline trans¬
is also made for hearings before a
pineapples, ..tree. fruitsT-2- small stampings,—-pressings;—structural military and rationed boots and
subcommittee so that such repre- fruits ahd
shoes; infants' shoes (sizes through portation; transportation services
Berries; medicinal, in¬ shapes, and machined parts.
on
the inland waterways, Great
sentatives
may
supplement and secticide, and rubber plants; veg¬
14. Finishing of Metal Products 4); gloves for military and indus¬
Lakes, harbors, bays, sounds, and
trial use; leather garments.
elaborate upon their recommenda¬ etables for fresh
consumption and —Enameling, japanning, lacquer¬
waters connected. with the seas,
tions.
20. Production of Textiles
processing; vegetable plants and ing, painting, plating, galvanizing,
including shore service such as
The criteria followed in deter¬
aluminum coating, polishing, rust- Production of textiles including
seeds; other food
and
special
stevedoring; trucking; warehous¬
mining whether or not an activity crops, including honey, tree nuts, proofing of metal products; sher- the
processing,
manufacturing,
ing; dry, open and cold storage of
is to be included in the List of
sugarcane for sugar
and syrup, ardizing, returning of cans. and bleaching, dyeing, printing, and essential
(perishable and
nonEssential Activities are prescribed
other: finishing of textile cordage,
sugar
beets,
sugar
beet
seed, utensil:.
<
perishable) commodities.
?,
in WMC Directive No. 1.
These
fabrics
sorghum and sorgo syrup, and
(excluding Wool or fur
15. Production of Industrial and

with

whether

worker

the

not

similar products.
2. Production

Ships,

—

criteria

(1)
in

are

follows:

tobacco,

Activities

directly engaged;
production of war mate¬

the

rials such

ships, aircraft, guns,

etc.;

(2) Activities

necessary for the
maintenance of the production of
materials

war

included

above, such as mining,
ication, transportation;
(3)

Activities

maintenance

essential

No.

commun¬

for

national

the

safety,

health,
and
interest,
such
as
medical,
nursing,
and
welfare
services.
The

collateral
after

account

that

tests

it has

taken

been

activity meets

into

decided

one or more

of the above criteria

Agricultural Equipment

Are

the

for

surces

duction

maintaining
the

and

re-

the

pro¬

under

item

con¬

sideration adequate to meet mini¬
mum wartime
/

(2)

sources

the

facilities

could such needs be

the

and

re¬

adequate and urgent
are
not
being met,

are

needs

war

needs?

establishment

met

through

production

and distribution controls?

sources

the

and

inadequate,

are

shortage of

facilities

manpower

one

re¬

is the
of the

factors that limit the production?
The list of activities constitutes

the

determination

have

been

declared

those

that

essential

the basis of the above criteria.
.

The

list

consists

broad

categories. The specific references
made
and

the

facilities

products,
are

only

services,
generally

for

hats

and

fancy

fabrics

boilers, wiring devices and sup¬
plies;
agricultural
implements; asks, laces* velvet, etc.), fibers,
electric lamps; storage and pri¬ nets, .rope, twine, yarns, made of
or using any of the
following ma¬
mary batteries; pumps, compres¬
seed processing, animal breeding,- sors, and pumping equipment; re¬ terials; Animal hair (other than
wool)
such as bristles, alpaca,
crop disease protection services, ceding, ^controlling^
etc.; ; asbestos,
cotton,
fibrous
Initial processing services such as ing
instruments
and
meters;
glass,, flax, hemp, h'enequen, jute,
ginning, compressing, threshing, conveyors,
industrial
cars
and
manila,
nylon,
rayon,
cleaning, shelling and curing, irri¬ trucks; blowers, exhaust and ven¬ kapok,
silk,
sisal,
shearlings;
gation services, farm repair and tilating fans; mechanical power- rubber,
waste
(processed), wool, other
maintenance services, farm prod¬ transmission equipment, such as
synthetic filaments or fibers.
uct assembly services, all of which
clutches, drives and shafts; me¬
are
21. Production of Apparel—Ap¬
performed on a substantially chanical stokers; tools, files, and
vear-round basis to essential ac¬ saws; plumbers' supplies; profes¬ parel for the armed forces; work
tivities ^related to essential crops sional and scientific instruments, clothing; snowshoes;- the follow¬
and livestock enterprises indicated photographic apparatus,., and op¬
ing infants' and children's wear
in

Selective

Service

Local

No.

164;
grist
(custom); ice harvesting.

Board

milling

tical

commercial) and sponges:

Gathering, bleaching, cutting, and
trimming.
6.

Processing of

Food

necessary

producing

Commercial Fishing — In¬
cluding fish hatcheries (conserva¬
tion

instruments;

ment

(c)

—

Meat

16.

essential

tribution,
atus

for

and

products,

eggs,

fish

and

nuts,

vegetables and their
soups,
flour
and
other

juices,
grain

mill

feeds

for

starch,

cereals, rice, bread and
bakery
products,
sugar,

other

products,
animals

prepared

and

-fowls,

leavening compounds, corn syrup,
fats and oils, ice.
Includes dried,
preserved,
dehydrated,
frozen,
canned,

and

other

special-proc¬

essed foods.

Forestry,

Logging,

Lumber¬

ing, and Forest Industries—Tim¬

commodities.

use

industrial

electric

for

equip¬

—

Engines
and
turbines;
metal
working machinery and equioment; electrical generating, dis¬

manufacturing,
portation, and

and

and all

to operate plants

Production of Machinery

oacking and slaughtering (includ¬
ing poultry), production of dairy
fruits

(3)

felt

Oubh^as brocades,; chiffons,- dam¬

Agricultural Services—Ag¬
ricultural, horticultural, and ani¬
mal husbandry services such as:
Commercial
poultry
hatcheries,

are:

facilities

Power

(b)

Release

(1)

---

public

appar¬

utility,

mining,
trans¬
construction use,

in manufactured products

in service industries; construc¬

* mining,
agricultural,
oil
field, smelting, and refining ma¬

tion,

chinery, as well as all machinery
necessary to produce, equip, and
maintain aircraft, ships,-■ ordnance,
and other military equipment.
17. Production of Chemicals and
Allied

Products

—

Industrial

or¬

ganic chemicals: Coal and petrol¬
eum

crudes,

coal

tar

intermedi¬

ates, dyes, color lakes and toners,

27.

and

Production

Materials

for

Pulp,

Paper

Packing

and

Shipping Products:
(a) Production of the following

paperboard, and con¬
products
Pulp
(made
pulpwood and other sub¬
stances); the following types of
paper stock and paper board: Ab¬

pulp,

paper,

verted

from

sorbent for impregnation,

asphalt

laminating, blueprint, box board,
butcher
papers
(untreated
and
treated), cable and electrical in¬
sulation, carbonizing, chart and
map
(Government),
condenser
tissue, container board, drafting,
filter* iruit and vegetable wrap¬
gasket,
glassine,
(woven and knit) when.produced ping?- tissue,
under
War
Production
Board's grease-proof, gumming, mandrel
stock,,.- pattern
tissue,
"Critical Infants' and Children's winding
photographic and other sensitized,
Apparel Production Program No.
rope and jute, safety base stock,
I;" (1) Underwear and nightwear
(a) through age 6—bands, crib sanitary (sanitaryv napkin; stock,
toweling stock, napkin stock, toi¬
blankets, diapers, gowns, kimonos,
let tissue stock, hospital wadding
pajamas, panties, shirts, sleepers,
stock), shipping sacks stock, tab¬
training panties,' wrappers;
(b)
ulating card stock, tracing, twist¬
age 6 through age 16—bloomers,
briefs and/or shorts (boy's), pa¬ ing and spinning, vegetable parch¬
ment, - waxing,
wet
machine
jamas, : panties,
sleepers,
slips,
wrapping
(machine fin¬
union suits (heavy weight), vest board,
ished and machine glazed); the
pants; (2) outerwear (a) through
following converted prod u c t s
age 6—coat and legging sets, snow
from paper and paperboard: Am¬
suits, sweaters; (b) age 6 through
munition and shell cases,, carbon,
age 16—jackets, long pants and/or
slacks (boy's), mackinaws, short envelopes used for shipping and
preserving essential products, fi¬
pants (boy's), sweaters; (3) Play
ber drums, gummed paper tape,
togs (a), through age 6—overalls
hospital wadding, laminated wa¬
(toddler's rompers and/or creep¬
terproof and heavy crepe, liquid
ers), sun suits, wash suits; (b) aVe
6
containers
and
closures,
through -16—polo shirts;
(4) tight
Utility garments (a.) through age

6—anklets,

-coveralls,

dresses,

mandrel

wound

mesh

cloth

fabrics,. napkins, 1 nested

...

and

paper

Volume

nested

THE COMMERCIAL & FINANCIAL

Number 4264

159

food containers
plates), papershipping containr
ers,
sanitary napkins,
shipping
sacks, toilet tissue, towels, twine,
waxed, waxed laminated and resin
impregnated papers for food, mu¬
nitions, and industrial wrapping.

cups,

«'V

Research To DevelopJew products

paper

(excluding

paper

board boxes and

Research

Products

Essential

—

and

Bagging,

containers);

stock
hoops);

cooperage

cooperage;

headings,

(staves,

cable,

such

for

closures

and

cordage; crates; drums (shipping);

cloth

excelsior; gummed
hope; tin cans.

tape:

of Communica¬

Production

28.

tion Equipment—Radios and

radio

equipment; radar; telephone, tele¬

graph, cable television, signalling
apparatus; electrical sound equip¬
ment ; vinylite transcriptions; tel¬
autograph.
Communication Services

29.

and

—

literature; produc¬
pictures (including
technical and vocational training

training

tion of motion

films

the

for

Army,

Navy,

Loan

and

production industries); mo¬
tion picture film processing; news

war

development of sensitized
protective signal systems
which supplement fire and police

reels;
film;

protection to military, public, and

which

Drive,

opened

formerly

was

$16,730,000,000, having been announced on March 2 by Secretary

The securities offered in the Fourth War Loan drive, which was

'■•'/

brought to

15, con-*>

close Feb.

The final

Series E, F and G sav¬

sisted of

War

bonds;
Series
C
savings
notes; 2Vz%
Treasury bonds of
1965-70; 214%~"Treasury bonds of
Vice-President
of
the
General scientists."
1956-59, and %% Treasury certif¬
Electric Company, Chairman of
Great advances are indicated
icates', of indebtedness.
the Committee,
specifically in the fields of textiles
Feb. 15 Associated Press Wash¬
"Scientists say that more prog¬ and clothing, processing and for¬
ington advices stated that, al¬
tifying of food products, and in
ress is being made in the applica¬
though the drive ended for "big
tion of science during a few war electronics and other phases of
money" participation, war bond
years than would normally take physics which may create whole purchases
reported to Federal
new
industries.
Indicating the
place in a quarter of a century,"
Reserve
Banks during the
re¬
possibilities of such research, the mainder
the report declares.
of4 the month would be
report
cites
several companies
The report, following a year's
counted toward the final total to
whose business just before the
be announced by Treasury Secre¬
study of the factors involved, is
war
showed strikingly the im¬
published as a "Guide to Post¬
tary Morgenthau on March 2.
portance of new products devel¬
war Product Development" for
These
advices
(Feb.
15)
also
oped in the preceding ten years
stated;
manufacturing companies and is
or less.
One large chemical man¬
The
the third in a series of five on
Treasury said it would
ufacturer reported that 40% of its
continue to announce daily the
post-war subjects, the others be¬
total
sales
receipts were from
individual purchase totals for the
ing on "Internal Organization,"
such products, a building material

structional and technical manuals,

War

of the Treasury Morgenthau.

/'From

Magazines of general circulation
which are devoted primarily to
the dissemination of public in¬
formation; newspapers and news
syndicates; military, naval, and
technical charts and maps, in¬

Fourth

throughout the Nation on Jan. 18, with a goal of $14,000,000,000, re¬
sulted in an oversubscription of $2,730,000,000,—total subscriptions

will come new industries which will raise living
standards and expand employment opportunities for workers released
from the armed services and war<S>
practical
engineers
and
production," said David C. Prince, more

fiber;
$cans; cases, packing; containers
(glass, metal, and wood; caps and
paperboards);

new products will play a vital part in
prosperity, according to a report issued March 7
product development of the National Association

of Manufacturers.

jute, meat; bags, textile (except
laundry
bags);
barrels,
metal;
baskets (Climax, fruit, vegetable);
box shooks; boxes (metal, wooden

committee on

Prosperity

develop

American post-war

(b) Production of Other Mate¬
rials for Shipping and Preserving
:

Focsrih War Loan Oversubscribed

Viewed As
The

I-- Playiiig Vila! Part In 'Post-War

1127

CHRONICLE

ings

figures
Drive

Loan

the Fourth
given by
nation-wide

were

Mr. Morgenthau in a

address from the studios of

radio

the Blue Network here.

•

Mr. Morgenthau hailed
the

and

Planning,"

"Cost

Study"

Financial Plan¬

"Corporate

ning."
Mr.

Besides

the mem¬
Othom

Prince,

bers of the Committee are
E.

Executive Vice-

Loupart,

President of the North American

Philips Company, Inc., of Doi?bs
Ferry, N. Y.; Dr. A. R. Olpin, Di¬
rector of the Research Founda¬
tion of Ohio State University in
Ohio; L. E. Wilson.
President of the Everite Pump
and Manufacturing Company, Inc..
of Lancaster, Pa., and H. T.. Win¬
ner,
President
of
the Winner
Manufacturing Company, Inc., of
Trenton, N. J. The report states:
Columbus,

"When wartime restrictions are
released

there

that

op¬

manufacturer
maker

24%,

of cork

says

scored

42%

and

salesmen

the advices from the

Association.

The

•

"an

and

the

said

Treasury

all 7
.of them to participate in the Fifth
counting on

was

War Loan.
"You

are

now

ganization,"
the

same

State

seasoned

or-

"Virtually *
group of leaders in the /
he

said.

and

committees

Wash¬

ington will remain. We'll all be
on the job, ready to set new rec¬
ords, ready to sell more bonds to
more people, especially 'E' bonds."
Mr. Morgenthau reported that

officially

opened

drive

Department

remainder of this month.

products recorded

sold

expression of
freedom."
He paid particular tribute to the 7
5,000,000. volunteer
war
bonds
bonds

the will and the way of

"Sales

each of
individual 7"E"

60,000,000

18, but all war bond
sales for both January and Feb¬
January

in addition to

bonds in¬

the "E"

dividuals bought $2,122,000,000 in
other securities for a total of $5,-

will be counted.
Practical factors to be consid¬
With respect to the oversub¬
ered by a manufacturer in estab¬
scription made known March 2 by
lishing or extending research for Secretary Morgenthau, the New
new products are summarized in
York "Times" of March 3 said:
the report.
They cover research
Figures released by Mr. Mor¬
in his own plant or laboratory, by
genthau on sales nationally, and
a
university or research founda¬
by New York officials of the War
ruary

309,000,000.

That

fell

sum

•

$191,- "

short of the individual7
but corporate and other
money buyers topped their ,

000,000

goal,
large

$2,921,-

$8,500,000,000' quota
000,000.
'

fjc

tion/a private research laboratory Finance
Committee
oh
sales
or
a
trade association or other
throughout the State and in this

ji,

group

project.

Suggestions, it is stated, are
based on the experience of many

announcing

the

success

also reflected the complete
success
of
the
"little
money"

the drive in New York State. Mr;

phase of the campaign, an enor¬
number of Series "E" bonds

zeal and.

city,

companies in acquiring new prod¬
ucts by purchase or patent li¬
cense, analysis of sales possibili¬

sold

The New York drive executives

individual

patriotism of the 500,000

volunteer bond, salesmen.

mous

having been
purchaser/

Burgess and Mr. Ford praised the

said the State's sales of "E" bonds

totaled $361,500,000^ surpassing byMr. Morgenthau,
40% the $258,000,000 of the Third'
60,000,000 individual "E" bonds
ing; radio communications (radio¬
marketing, protection against pat* were sold, amounting to $3,187, - War Loan, and ^by nearly $200,-'
developments
will
appear
in
000,000 the "E" bond sales in the
ent infringements and improve¬
telephone and radio-telegarph);
000,000.
New York State/alone
peace-time products faster than
cable service (land or submarine);
ment
of
present products, in¬ was disclosed to have had 5,300,- Second War Loan.
ever before.
The company which
telegraph; tele
television; does not take advantage of these gredients and packaging.
The
000
5,300,000 individual pur¬
separate buyers,
against a
; production' for essential activities
chases in the State, compared with
"There is no magic about new goal of 5,000,000.
opportunities is likely to fall be¬
of continuous forms with or with¬
3,735,000 separate buyers in the
product development," says the
W.
hind in the march of progress.
Randolph Burgess, Chair¬
out one-time carbon; production
Third War Loan and 2,600,000 in
"New materials, including many report, "though new products can man of the War Finance Commit¬
for essential activities of snapout
be highly dramatized.
It is the tee for New York, and Nevil the Second War Loan.
plastics, improved light. metals.
types of forms interleaved with
result of the enterprise and initia¬
The final report
of subscrip¬
Ford, the committee's executive
new
food
products
and
nev
one-time carbon, and produced on
tive v of. < individuals,
who
seek
manager,
announced
that
the tions to Fourth War Loan by iswill
be
available
ir
rotary equipment; and production fabrics,
profits by starting new projects over-all total sale of bonds was sues and by classes of investors
quantity and at lower
of
salesbook-type
forms
con¬ greater
or expanding old ones."
$4,662,100,000, or 11.1.1% of the as made public on March 4 by the
prices than formerly.
Machine
tracted for by governmental agenCommenting on the report, Nor¬ State; quota. - Books on- sales were effiee—of-the Seeretary of thetoote have been so -greatly- im¬

private industrial and commercial
establishments; radio broadcast¬

portunity for normal competition
new
scientific and technological

ties,, sub-contracting for manu¬
facture of parts and for additional

According

■

•cie.!.1—.
^

———

30. Heating, Power, Water

Sup¬

ply and Illuminating Services

—

Electric

light and power, water;
and gas utilities; steam-heating
services;
sewage
systems;
tree
trimming for power and com¬
munication
lines;
water-well
drilling; installation and servicing
of

liquefied petroleum gas facil¬

proved that many pre-war prod¬
ucts will be considered crude by
standards to which industry

new

has become accustomed.

there are more
capable of fine
a result of pre¬

"Furthermore,
skilled

workers

workmanship

high quality
prnd ucts, and there are also

cision experience on
war

ities.

Chairman of the closed Tuesday night. The' drive Treasury, Division of
and Statistics follows:
Peacetime Planning ended. Feb. 15.
(In millions of dollars)
Committee of the. National Asso¬ ;;/r ^///:/:v///
Other
Insurance
Individuals,
ciation of Manufacturers, says in
corporations,
companies
partnerships
a foreword: "Coupled with the ef¬
Dealers
associations
and mutual
and personal
//■'■''////'/

man

W. Wilson,

■

forts
new

mahagement to

products must be

develop

favorable

trust accounts

Issue—

E bonds

policies which encourage F and G bonds.
inventors to conceive new prod¬
Savings
ucts, investors to invest in their Certificates
development and manufacturers
214% bonds
national

machines;

business

elevators;

repairing; .sewing machines;
refrigerator^ clocks and
watches; harnesses; tools; stoves;
pneumatic tube systems; power
shoe

auxiliary civilian welfare services
to the armed forces; welfare ser¬
vices

services.

OSeveiasi Reserve Bist.

equipment; electric

laundry

ap¬
engines,

motors,
heating equipment scientific,
and

pliances

machines:
trial

industrial

and

mercial

and

and other

farm

scientific

com¬

weighing
indus¬

tquipment

roofing, , arid
plumbing and
in domestic,
commercial, and industrial build¬
ings; building alteration, mainte¬
nance
and repair, installation of
insulating material; blacksmithing; armature rewinding; locksmithing. It is intended that con¬
sideration be given only to indi¬
viduals qualified to render allaround
repair services on the
types - of
equipment
specified
service;
and

welding
electric,

gas,

heating installations

herein.
:

«.

/;v

32. Health and

-f/-//

Welfare Services

—Offices of physicians, surgeons,

dentists, oculists, osteopaths, po¬
diatrists
(chiropodist),
sanitary

33.

Services//Pubprivate industrial and agri¬

Educational

lic and

vocational training;

cultural

ele¬

mentary, secondary, and prepara¬
tory schools; junior colleges, col¬

universities,

leges,
sional

schools/

scientific
United

r es e

States

Service

Maritime

Training ' Program;

Civil

Aero¬

Administration / Civilian

nautics

Pilot

profes¬

and

educational -and
agencies;

arch

Training/ Program;

armed

contract

forces

flying,
ground,
and factory aviation schools; and
the

production of technical and
vocational training films. {• %
34.

Governmental

co-

belligerent
Scientific,

and

Management; Services—The

sup¬

•.

-35.

Technical,

plying of technical, scientific, and
management < servicess, to estab¬
lishments •engaged
in war pro¬
duction;

dustrial

183

union-management

ne¬

517

1,829
1,157

352

p. C; Swander,

President, Co¬

Vise&Manufacturing Co.,

President,
& Manufacturing

Chairman; H. P. Ladds,

266

827

158

403

1,920

7,585

433

16,730

Note—Sales of Savings Bonds and Savings
tables since Jan. 1.

Notes included in this,

Figures are rounded and do not

necessarily add

to totals.

opening of the Fourth War^

The
Loan
our

Drive

was

referred

If Senator Styles Bridges, Repub¬
lican, in a speech on March 9, in
the Senate declared that the con¬
stitutional

balance

between

the

legislative branches
Government "can be re¬

executive and
of

the

sional authority that

has been si-;

phoned off." He declared he wasdetouring politics in his statement
in order to "hew close to the line >

504.

issue of Feb. 3, page

Aaiboriiy, Says Bridges

lumbian

1,024
2,232'
5,036
3,331

Jji '

2,043
3,931

3,403

5,309

land.; Members of the commit¬
tee/which recomends with res¬
pect to industrial loans in which
the Federal Reserve Bank is con¬

;

investors ■!

*Less than $500,000.

Congress Dan Retrieve

cerned, are:

Total—all...

380

342

by President M. J. Fleming of the
Federal Reserve Bank of Cleve¬

of fundamental

principles."

"I propose

to dedicate my best.
energies to the years I still have
to serve in this Senate," he said,"to the restoration of the dignity
of

Congress

and

its

protection.

against executive encroachment. I
propose to persevere in this effort
whether the present Chief Executive is re-elected or not."
Powers
have
been - delegated

•

■
-

of the
ordered and without clearly defining adminis-,
selfrespecting restoration of the trative standards, he said, and adfull rights and total functions of ministrative
officers
"must
beS.yRider Co., and W. W. With- the Congress," according to the brought into line." In the recentNew York
"Herald Tribune" of veto
of
the
tax
bill,
Senator
ingtonr President,.American Fork
March 10. In its Washington ad¬ Bridges saw "the danger of Presi¬
& Hoe Co.
dential concentration of the tax¬
vices March 9 the paper .indicated
The Bank states:

Services—, National Screw

other than Federal,

Federal;

Reappointment of five Cleveland
serve.; as the In¬
Advisory Committee of
the Fourth Federal Reserve Dis¬
trict was announced on March 9,

industrialists to

and brokers

V-:-V/.>!

//.';.•'/'

3,187

496

Total ^4/4/7/4./

Iiidsis!ria|ists Advise

and investors

573

2%% bonds

ities; accident and fire-preventive
services; structural pest t control

radios;

produce them."

church activ¬

civilians;

savings banks

•v

3,187

....

Services—Repair of:
Vehicles, such as bicycles, motor¬
cycles, automobiles, busses, trucks,
taxicabs; tires; typewriters and
31. Repair

Research

Corporation

Co., Vice-Chairman; C. F. Hood,
President, American Steel & Wire
Co., H. R. Neff, President, George

"The

reappointments were made

stored not by appeasement

President,

but: by

added:,

•

ing power as well."

The action of

Bridges Senator Alben W.c Barklev, of
Kentucky, the Senate majority
technical and scientific books and Federal Reserve Bank of Cleve¬ said, "must share the blame for
engineers, and veterinarians; med¬
the fact that more and yet more leader, in resigning his post in
journals; and the services of Fed¬ land and approved by the Board
protest / of
the
veto,
Senatorical, dental and optical labora¬
Governors
of
the / Federal blank-check powers have been
eral,
Reserve
System
district of
tories;
pharmaceutical •«. services; banks and branches (does not in¬ Reserve System at Washington. concentrated in executive hands," Bridges said, "thrilled citizens to
hospitals; nursing services;
tutional

insti¬

care;.mortuary services;

gotiation

clude
of

the

services;

services
Federal

publication of

member

Reserve

banks

System).

by the board of directors

^of the

Each term is for one year,

begin¬

ning March 1, 1944."

•

Congress itself, Senator

and

must

delay"

devote

itself

retrieving

"without

"Congres¬

the

marrow

as a

demonstration of

principle beyond partisanship."

Sound Commercial

Policy Is Essential

A thorough

Appropriations Committee in sending
to the floor of that body on Feb. 16 legislation appropriating $231,304,700 for the Departments of State, Commerce and Justice for the
fiscal year beginning July 1, was the occasion also of the submission
of voluminous printed testimony from various officials charged with
the task of directing a far-flung foreign service and at the same
time coping with war-born prob--^
lems at home. One of those whose cornerstones of any stable politi¬
action

views

cal peace

the

Hull

one-sided

Secretary

who

the

told

Cordell

State

Committee

one

point that it was too late in life
join "the bureaucrats,"
and from whom came a warning
that the war is not all over but

for him to

pense

strive

not

should

"We

operational costs, aimed at reduc¬
the cost of manufactured
goods to the public, was urged on
March 9 by the National Associa¬
tion of Manufacturers in one of a
series
of
corporation
post-war

end
We

the

ment for returning war veterans.

Such

everybody will suffer. . . .
want to make our policy fair,

array

in any

check list, this

guide takes up the 150 most im¬
portant cost problems which must
be
met
by
all manufacturers,

mutually desirable, and

engine
plants will have to be written off
as a dead loss, and from J. Edgar
Hoover, head of the FBI, an ad¬
monition
that
juvenile
delin¬
quency is "sweeping the country."
Reporting that Mr. Hull told
and

airplane

Committee that winning of a

the

victory
was
but
one
phase in the program of "bring¬
ing about peace and future world
stability"
the Associated Press
Washington advices gave his ob¬

military

servations
"A

follows:

order"

his

was

stable

and

just

durable,

world

•

definition

of the final
"A
I

goal of the war.
commercial policy—
by that an international
of mutually beneficial

sound

mean

program

and

co-operation
mercial

sound

policy—are

com¬

the

one

poration post-war planning guides,
exchange situation, and the
credit situation.
The truth, I I follows publication of A Guide to

the

believe, is that after the war, if
we are to furnish employment to
are

entitled to it, if we and

important

other
world

should have it and

people who
who

;

are

the

parts
of
forward,

production,
dis¬
tribution and consumption. If we
must

increase

sxpect to sit back while each
country makes itself a separate
compartment
in the
economic
world, as we did between these
two past wars, we will find peo¬
ple employed in some localities
and very much out of employ¬

defended

Hull

ment's

Good

the depart¬

policy

Neighbor

with other American republics.

Differences In 0WI Between Davis And
Sherwood

Guide

Post-War

De¬

Product

velopment. V Fifth in the series, A
Guide to Post-War Corporate Fi¬
Planning, will be issued

nancial

shortly.

reduction

"Cost

should be

one

of the primary

objectives of com¬
pany post-war planning," accord¬
ing to Norman W. Wilson, Presi¬
Co.

Hammermill Paper
Chairman of the NAM

the

dent

and

Corporation Peace-Time Planning
Committee.
"It is vital to effect

competition," he advises in
the Cost Study Guide, "and when
it makes price reductions possible,
it is one of the most important
factors in improving the standard
of living.
It has expanded mar¬
kets so that millions enjoy goods
and services which were formerly
luxuries for only

Adjusted—3 Fi Y, Executives Design

the-wealthy."

The check list cover's

five sub¬

of materials, cost pf
manufacturing overhead,

jects:

cost

adjustment of differences between Elmer Davis, Director of labor,
the Office of War Information, and Robert Sherwood, OWI overseas financial and admin;strative, and
Chief, was reached on Feb. 7, according to United Press advices selling and distribution.
from

Washington, which indicated the clearing up of the dispute
in New York of three executives whom Mr. Sher¬
wood had refused to, dismiss on Mr. Davis' order.
They are Joseph
with resignation

Barnes, director of Atlantic over- »
seas
operations;''James Warburg, Warburg, Johnson and Barnes had
of
psychological
warfare, failed to adhere to the policy line

head

Edd

and

Johnson,

chief

editorial

overseas

which

from

quote, added:
"It

understood

was

Sherwood

will

Mr.

that

London to
reorganize the OWI bureau there,
go

another center of controversy.

"Mr. Davis

said to have felt

was

the New York office

'running

was

with OWI' and that Messrs.

away

laid down in Washington."
Roosevelt

President

The
to

have

advices

press

the

board.

the

United Press

asked

been

dispute;
not

was

Roosevelt

to_ intervene
to this the

Feb. 7 stated that

known

was

said

was

whether

Mr.

instrumental in ob¬

taining the settlement, but he was
reported to have refused to take
sides.

ployment, resulted in 14 l/z million fewer hours of manufacturing time
in the mid-week of December as compared with the mid-week of
November, Secretary of Labor Frances Perkins reported on Feb. 21.
The average number of hours worked per man per week in December
declined to 44.9, reflecting the large amount of illness and other
absenteeism which prevailed in
all industries, together with a re¬ port
data for a whole month
in

ules

decline
to

The net

industries.

some

employment amounted
130,000 wage earners. Secretary

Perkins further stated:
the

All

durable-goods

hours

December

each

vember.

than

and

tlm

case

total hours reflected

work-week

groups

manufacturing

fewer

reported

drop

shorter

but

all

No¬

coupled with a decline m em¬
ployment. Almost 3.500,000 less
hours were put into the buildm?

was

ships, planes, and tanks in th»

mid-week

the

drop
of

December

mid-week

the average

than

and

the

than

of November; The

decline

work-week

hour
in

per

week

wage-earner

employment of 19.000 combined
to bring about this large drop in
manufacturing time in the trans¬

portation

decline

The

in the

1.500,000

hours

automobile group was due

entirely to the work-week averg
]p<?s in De¬

gvenner

cember

than

November. Many

firms in the auiomoDiie gioup re¬

rather

than

nearest

these

for the week

the

15th.

firms

ending

from

Reports

would

include

the

Christmas

holidays.
Excessive
absenteeism,
however,
was
the
most
important reason for the
shorter

work-week

mobile group

Charles J.
Dalton, director, Post-War Policy
Division, American Type Found¬
ers, Inc., Elizabeth, N. J.; Nathan¬
iel Ba rnes, Secretary, Association
of Consulting Management Engi¬
neers, New York, N. Y.; Albert H.
Foster, director, Route Survey &
Marketing Analyses, Borden Farm
Products, New York, N. Y.; G. C.
Gridley,
President,
Mechanics
study was composed Of

Universal

Joint

Division,

Borg-

these

include

would

responsibilities:
To lay down the policies to
guide the choices for canceling
contracts of war goods no longer
needed.

ing in the Chicago "Daily Trib¬

with

work

the

and

Army

Navy and War Manpower Com¬
in
making the
actual
mendation that the War Produc¬ mission
tion Board make the high policy choice of which producers will be
une" it

stated that

was

decisions

what

recom¬

contracts

war

should be cancelled and what ci¬
vilian

production
is

ment

con¬

The ad¬
quote in

appendix*

which

from

vices

war

tracts to make use of

the Baruch

pro¬

posal would leave to WPB the im¬
industries

sumer

should

con¬

re¬

stored to civilian

production first,
how long controls should be re¬
tained after the war, and whether

should

firms

new

allowed

fields of

enter established

manu¬

facturing in the immediate post¬
era.

war

The

appendix listed the major
of the WPB and the

outlined

Bernard

what

"decide

civilian

pro¬

employment is to be
resumed as war needs slacken."
To
review
worthwhile
local

projects, deferred during the war,
which may be cleared as war
needs slacken.

urged that the Army
should decide which
weapons and military supplies are
to be cut as the war changes, with
the services informing WPB "as
soon as such cuts are thought of."
The report

and

Navy

to the Ba¬
recommendations

reference

Detailed
ruch

Hancock

appeared

sion of industry.

pro¬

duction and

functions

Army and Navy in the reconver¬

war

duction.
To

If carried out,

facilities

from

freed

manpower

part added:
>

production.
guide the shifting of con¬

employ¬

and

resumed

tained in the

removed and which will be left in

our

Feb.

issue,

817.

page

Dewey Says Peace Host Bo Based On
'Browing Sense Of Fellowship Between Peoples'
rally at Madison Square Garden, in New
Red Cross War Fund Drive, on Feb. 29,
ends the present .war "must not be the
dictated result of personal conferences."
The New York "Times",
of March 1, in thus quoting him, reported further remarks of Gov¬
Governor Dewey, at a

York

City, opening the

warned

ernor

that the peace that

Dewey as follows:

.{.

Warning that the building of the^-

good-will, striving to make it
and sacrificing to make it

will just have commenced
peace treaty is signed,
Governor Dewey told the gather¬

ing that the document "must be

^T^sj^pL^H, it j must Joe based-

peace

when

the

He said that it
inflexible

peace."

paper

must

hot

rigid,

thing, but must "provide peoples
everywhere with simple, under¬
standable means of bringing an
end to the horror of war."

"It

must

be the constant,

daily

work

endure,"

declared.

Governor

the

a growing sense of fellow¬
ship between peoples. It must be
built so strong that neither dis¬

upon

couragement,

selfishness nor the

arrogant mouthings of ambitious
can

men

again

lead

them

into

Rockford. beneficiary of the labors of men wars of conquest."
111.; Carl Henrikson,. Jr., regional
business consultant, U. S. Dept. of
Commerce, James Olson, partner.
Booz-Allen & Hamilton; Joseoh
Ready, Electric Powef, ; &' Light
Corp.; Frank Sweetser, partner,
According to Chester Bowles; Administrator of the Office of
Stevenson,
Jordan & Harrison:
Price Administrator, a new, simplified and improved retail price
Carey
E.
Tharn, Policyholders
regulation is being developed by the OPA to replace the general
Service Bureau, Metropolitan Life
maximum price regulation, which has proved unsatisfactory, and
Insurance Co.; C. Oliver Welling¬
that the new plan will be presented to the nation's retail merchants
ton,
partner, Sroy ell-Wellington
for consideration and criticism within the next few weeks.
Mr.
& Co.; A. L. Williams, Comptrol¬
Bowles' announcement was made^ler, International Business Ma¬
on Feb. 29 at the annual meeting
"Our chief goal after the war,
chines
Corn.;
A. S. Wittnebel.
of the American Retail Federation all speakers agreed, is high pro¬
President, Commonwealth Color
held at the Waldorf-Astoria.
Ac¬ duction and employment arid full
& Chemical Co., all of New York
security,
and
Senator
cording to the New York "Herald national
City.
Tribune," Mr. Bowles termed the Taft, citing the tremendous costs
new regulation, which will apply
of this conflict, declared that in ;
to all commodities except food, as his opinion the American system
earnings in the non-durable group
"a
product of American retail could not survive another all-out
averaged $35.61. None of the dur¬
Corporation,

Warner

the

auto¬

in every
epidemic

trade

itself";
the
same
paper
goods groups and only 4 of
stated that he indicated that the
"Mr. Bowles declined to reveal
non-durable-goods groups reundoubtedly raised the absentee¬
new regulation
will meet all the any details of the proposed new
oorted increases in weekly earn¬
ism; rate c to its highest point in
objections of retailers to the regu¬ regulations,
but said that the
ings. The in crea ses in the weekly
December.
earnings in the food, printing and lations now in effect, with the, OPA and leading merchants and
: While
all but one of the non- netroleum groups were due en¬ possible exception of eliminating retail experts had been working
the highest price-line limitation.
lurable groups showed some de¬
on
the program since last Sep¬
tirely
to
increases
in average
Even this, he said, will be disfine in their total manufacturing
tember.
No public announcement
hourly earnings while the increase

other

The

group.

hours,

the

curred in

largest

was

flu

declines

oc¬

the chemicals and food

In both of these groups
employment and average hours
oer week declined simultaneously.
Factory workers in the non-durgroups.

p>*oup

whole

put

5,000,000 less man-hours per week
in

equipment group.

guide to post-war cost

role

Improved Price
Regulation Is Planned

Factory Workers Hours And Earnings Up

adjustment of production sched¬

which pro¬

subcommittee

the report for
War Mobilization,

Bowles Of OPA indicates

A shorter average work-week, coupled with a decline in em¬

The

duced this

Office

WPB's

advices from Washington appear¬

portant decisions on which

tive

ment in others."

Mr.

Internal Organization, A Guide to
Post-War Sales Planning and A

prepared

the

not alter them
In Associated Press

way."

and

jointly

way

Hancock, who

John

Baruch

the report but did

complicated

the

the form

dicated

ernment

appendix in<?>

problems which he must face in
dealing with new materials, sur¬
plus war supplies, and employ¬

mutually
•profitable, so that we can fit in
Secretary of Commerce; came a effectively with a suitable plan J large and small, in returning to
I peace-time production.
This Cost
statement that much of the $2,in
regard
to
stabilization
of i
Study, fourth in the series of cor¬
700,000,000 invested by the Gov¬ phases of the monetary situation,
shouting. It was likewise in¬
that from Jesse Jones,

the

that the

Baruch

Mr.

the attention of the manufac¬

turer

agreements at the ex¬

of the other country.

report.

"Times" because of the

changed the original re¬
port.
All it did, they said (we
quote from the "Times" Washing¬
ton advices), "was to summarize
for purposes of convenience rec¬
ommendations scattered through

policy will react disastrously on
nation following it and in the

According to. Washington advices to the New York
assumption by some n'ewspaper writers that
Appendix represented new matter, it was explained by aides of

of the

The guide calls

planning guides.

get

Along with the issuance on Feb. 29 of printed copies of the
Baruch-Hancock Post-War report, an Appendix was at the same
time made available which had not accompanied the original copies

study of industrial

ing

structure," he said.

it is learned
Associated Press, was

set out,

were

from

House

the

Summarizes Recommendations

Hull Post-War Cost Study

To Stable Political Peace Structure:
The

■

f Appendix To Baruch-Hancock Post-War Report

Issues Guide To

Thursday, March 16, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

1128

December

than

November.

able

modern war.

the

leather

the

group

' reflects

work-week as
rise in average hourly

lengthening of .the
well

the

earnings.
The average

bituminous
and

hours per week in

coal mining was 44.6

anthracite

41.4

De¬

r,U„Sie.?„„f"nL5n£"about
tled "once and for all" before the

quote:
"Mr.
we

Bowles
not

goes

•

;'.

declared

succumb

that

the pres¬

seeking to weaken
price
controls,
the
American
people will, for the first time in

sure

of groups

earnings
in cember 1943. Both of these in¬
to
$44.68. dustries have returned to normal
apy war in which they have par¬
The
earnings
in
the
durableafter the scattered ticipated, win the battle against
goods group where most of the |' operations
strikes
which
occurred
during inflation and nrevmt bhaos and
war
production is concentrated
bankruptcies after the war?
-V;
amounted
to
$50.50 while the November."
Average

December

weekly

amounted

the plan will be made until

retail

into effect.
From the New York "Sun's" ac¬
count of Mr. Bowles' remarks we
regulation

new

groups
review it

tions for

have had a chance
and

offer

sugges¬

improvement.

"Warning that no price control,
regulation can ever be perfect,:
Mr.
Bowles
added:
'I
believe,
however, I can say with confi¬
that

dence

the

days you will agree with me that
a
major improvement has been
made in the retail pricing system,
under
your

which

you

are

operating

businesses and your stores."

Steel Production

„

A New Situation

and

the

many

the

future

front.

others who think
he does, as I see it, is that
their thoughts are turned to the
past, whereas it is on the present

perhaps more forcefully than at
years," says "The Iron Age" in its
adding:
"Deluged by plate and sheet^
orders, several flat rolled produc¬ steel ingots and castings, com¬
pared to 1,769,800 tons one week
ers report that their carryovers of
scheduled but "unrolled tonnage ago, 1,750,000 tons one month ago,
have risen recently despite record 1,719,500 tons one, year ago.

Cleveland, in its
ceptance by mills' of large ton¬ summary of the iron and steel
nages of sheets and plates, WPB markets, on March 13 stated in
is giving mills large amounts of part as follows:

civilization

"STEEL"

and

for

lend-lease.

Are

replacement schedules and
other severe steps in some areas,
The serious shortage is in com¬
"WPB has decided to revoke its

the

mill

Geneva, Utah.
is reported

preciably

time it

same

the South Chi¬
cago plant of Republic Steel Corp
has been approved. The first ac¬
is

of good

the

cor

arid

armies

tries

ovens

borne

building program will run into
1945, although it is yet uncertain
what, exact tonnage will be built

ments,

half

first

the

cline

it Was pretty

will

the

needed for 20,000,000 tons of

ship¬

all

miscellaneous

con¬

with

shipbuilding

tober

2,000 ships this year. While
first quarter allocations of plates

their

Plates

best.

still

are

receiving
second

fbr

directives

Commission

560,000

terrible

delivery promises, some
September and Oc¬

makers

"Reaction

the

to be that legal
concerning the use of

seems

quarter,

for

DPC furnaces would be formida¬

scrap

the situation is

said

ble, and that the small steel com¬

War Finance Committee

area,

Randolph Burgess

New York at

pointed out that increased labor
rates had been as great a factor

their overall production
had the cost of raw ma¬

in raising

had

Iron and Steel
March 13 announced

American

Institute
that

telegraphic reports which it
received indicated that the

operating rate of steel companies
having 94% of the steel capacity
of the industry will be 99.1% of
.

two

members

who

died

„

tee

who

month

the

Committee

last

meeting.

were

cited

were

Arthur

record), compared with
one
week ago, 97.7% one
ago

and

99.3% one year

The operating rate
week
beginning
M^rh
ago.

equivalent

1,775,200

Relations

Public
Karl D.

Committee, and
Gardner, who, at the time

of his death

was

the

meeting members

were

informed of the retirement of W.

Nevil
ence

State Chair-

f
'
\
and of the appointment of
.

Secretary

announcement

Refer¬

Mongenthau's
the

change

mass

England

fight¬
produc¬

and

America

slumbered, and France, still think¬
ing in terms of World War I,
poured billions of francs into the
Maginot Line, Germany grasped
the full significance of the new

must

even

out

come

impoverished,
decimated, and staggering under
a crushing burden of debt.
struggle

This
'his

total

and it is to

war,

able

that Mr. Wilson
would consign mankind without
a struggle to avert it.
prospect

from

Japan

backward

of the most po¬

one

aggressive military and
powers in the world.

antagonist today. And yet

gerous

has only about seventy
people. What will be the
potentiality of China, when she
becomes industrialized, with 450

Japan

million

million intelligent,

thrifty and in¬
people?
And what of
India, with 360 millions?
The time may come when the
dustrious

Peril"

"Yellow
and

will

reality

just a nightmare; when
the white races may have to pool
not

their

own

Granting the difficulty of cre¬
ating an effective organization for
world peace; granting the failure
of our first halting steps in that

supremacy"

Some think she is our most dan¬

all

Peace or Chaos

and

industrial

the

maintain

century

one

herself

will

resources

thei r

hold

against the "rising tide of

color."
Sooner

later the white man

going to lose his privileged po¬
sition in Asia, and that will have /
direction; granting the weakness
tremendous
economic repercus¬
and limitations of human nature,
sions in the colonial empires. In-,
still, the effort must be made, and stead of
being dumping grounds
if
necessary
'made
again
and for
European and American man¬
again! The alternative is too ter¬ ufactured
products, Asia will fur-"
rible to contemplate.
And be¬
nish' the keenest of competition
the United States is one of

cause

the

most

countries

powerful

the

world, we must be prepared
to do our part.
If we do not—if
content

are

seek

ignominious
safety behind
ocean
barriers, leaving, the

our

rest

shall

aid—we

our

what

deserve

will be undoubtedly come to pass.

We shall be left alone and friend¬

when the next storm breaks

less

the world,

over

who

Fuehrer

future

some

pickings for

easy

succeed where Adolph

may

failed.

possibility I would
suggest in closing.
The

white

races

and

knowledge,

this

and

of war,

into weapons

white

to conquer

man

translated
enabled the
and exploit

millions of Asia.

the teeming

hundred

two

the first to dis¬

were

apply modern science,

years

For
the

There

problems to be solved then,
problems, and it will
be well for us, and* for them^lit:
there is in existence an organi¬
zation and a technique to solve
those

in¬

peacefully,

problems

stead: of~iit a~ war ~irj7 which

we -

ourselves
hopelessly
outnumbered by people who also
may

find

know

how

make

planes, and"

tanks, and submarines.
So let us have done

f
with the
attitude that because a

defeatist

thing never has been done, there¬
fore it never can be done!
New
us

other

One

industrialized.

she

all sorts of

times

New "Yellow Peril"

The

once

will be

Let

require new measures.

strive rather to measure up to

which destiny has laid

the tasks
our

upon

And the

generation.

foremost of these is the problem
of organizing

the world for peace.

LIGHTBOWNE,

WM. GARFIELD

Bogota, N. J.
March 15,

1944.

weapons and concentrated on de¬

veloping

"mechanized"
is

over

army.

history.

now

mechanized

Ger¬

whose leaders

had

also forecast the future and pre¬

pared to fight machines with
chines.

Thanks

the

democratic

granted

were

their

convert

time

countries

which

industries

mechanized

ate

and

forces

cre¬

meet

war"

can

only

fought with total mobilization. So
are the demands of a mod¬
mechanized army that all hu¬

material
must

and
be

member banks of the Federal Reserve

bank.

rate of return, it is indicated, was about 30,% higher
1942, and above that for 1941. Banks in all deposit size

The average

than

groups
mgs

showed gains in net earn-^
the very smallest portance
deposits of $500,000

banks having

at nearly all
banks have increased substantially
less.

financial

concentrated

re¬
on

Deposits

the

beginning

banks

have

the

district

deposits of $500,000
in

whereas

banks

war.

there

1939

this

group.

now

less,

were

Mr. Davis'

announcement likewise says:
"Cash
on

as a source of bank
Iiiterest and dividends

except

averaged

dividends

come.

in¬

accounted for 38.2%

securities
the

operating earnings
compared with 28.8%

total

1943

Interest

1942.

and

dropped to 43.8%
operating ' earnings
as
54.5% the previous year.

capital funds and the remain¬

by the
strengthen their capital

they

rose

expenses

front"

has

securities,

and

dangerous,

for

For the first time in

become

important,

structures.
creased

the fighting ' ments

holdings

of in¬
Government
from invest-

result

income

has become of growing im-

total

Reference

absorbed

earnings

pared with 73.6%

production

of total
against

less than earnings. Con¬

sequently,

banks

in
in
on

"Although current expenses in
were
higher than in 1942

history
wars^are fought not by armies but
by entire populations. The "home

war.

task

1943

70.4%

one

discount

loans

ing profits were retained

the

Bank of

according
C. Davis, President of the

averaged 8.4% of invested capital funds,

statement issued March 10 by Chester

ber

great

sources

to a.

Only-36 of the nearly 450 mem¬

The Nature of Total War

"total

Net profits of all
St. Louis in 1943

since

the German challenge.

man,

Funds
in St. Louis Reserve Oisfrict Higher En 1843

ma¬

the sacrificial

fighting of the Red Army and the
stubborn courage of the English
people,

Ratio Gf Bank Profits To Capital

divisions

the face of Europe in

army

Ford to that office.

"victors"

uhe
such

that

property,

cover

While

ern

Randolph Burgess

tion basis.

But

for the the State Chairmanship appears
13
is
tons of1 elsewhere in these Columns today.

ing machines

Chairman of the

Community Sales Division.

98.8%

since

The late members of the Commit¬

capacity for the week beginning.
tv/tovoVi
13
/'thp
March
13
(the sprnnd highest roan,
second highest
level

Mar. 9,

Kudner, former Chairman of the

terial."
The

quarters at 1270 Sixth Ave.,
confronted with a
scrap
shortage,
and adopted resolutions in tribute to

disastrous

meeting

at its

that they were

costs

mercy of
industrialized

a matter of weeks, and were not
halted until they came up against

The War Finance Committee for

denied

highly

states which could turn out

another

the Illinois-Missouri
queried concerning their re¬

action to the Murray plan,

few

many's

Retires

panies

and

life

the

completely

the

rolled

disarmed, and

The result

8f lew York leets

Several of the smaller steel com¬

larger countries.

put

to be distorted."

panies-Still would have no guar¬
antee of adequate
orders. It is
pointed out that the history of the
steel industry shows that when
supplies are in balance or in ex¬
cess
of, demjrnd,
so-called pre¬
mium prices cannot be realized.

the

tents and purposes

Murray,

stroke, therefore, all other
countries, and particularly the
smaller countries, were to all in¬

steel-makers is not vet clear, but
as

great the destruction

one

industry
problems

pro¬

few

many

proposal

other

any'

a highly developed heavy
industry, which existed in only a

President of the
tons monthly.
United Steelworkers of America,
"After analyzing the
Murray that the Government sell pig iron
plan for assisting 20 of the smaller and scrap below ceiling prices to
steel companies, opinion
in the certain
small
semi - integrated
Philip

than

great is the drain on accu¬
capital and natural re¬
sources—especially
metals
and
so

Asia?

feudalism to

oils—and

races

raised

#e1^i-nf the-world-to struggle .with, the
struments
pr^iem of shackling war without
warfare required for their

duction

easing in the monthly carryover.

were

combustion

internal

resources.

much

the fiction of "white

fought

are

which discourages the outlook

tons

second quarter alloca¬
an estimated -525,000

monthly,
tions

about

to obtain

opportunity

the

other devilish devices,which make
this war different from and more

quoted generally for late August
through universal
plates can be had in June. Plate-

ing

Maritime

and September,

vided Maritime succeeds in build¬

the

little

August

program of at least 10,000,000 tons
is in prospect for next year, pro¬

yet

was

the tank, the submarine,
self
propelled
artillery, - truckmounted
infantry, and all the

mills offering

amounted

war"

plane,

booked into late third quarter,

quire about 475,000 tons of plate a
month in the third quarter. This
a

"world war," and
terrible, but the con¬

engine had made possible the air¬

"Sheetmakers for the most part
are

ment

sumption shows a gain.

cate that the Commission will re¬

indicate

miles

comc.

period of conserva¬

increased and

ping, the production goal for 1944,
by the beginning of July, tenta¬
tive discussions with WPB indi¬

would

tanks

power,

mulated

of
the

be¬

buying. Railroad buying has

tive

steel

have

race.

undeveloped
longer

How

tent

"total

and vast

obliterated.

human

people than
all of Europe outside of Russia,

white

extended

creased after

that the Maritime Commis¬

sion

cept

mo¬

China alone has

countries

three

those

one-half of the

live

total

unrest.

and to
subject the citizens to such regi¬
mentation and control, that the
distinction between "dictatorship"
and "democracy" has been largely

concentration

A
new
factor, however, had
recently, come
into
being
which
was
after easing considerably in early destined to revolutionize the art
weeks of this year.
Aircraft re¬ of war and change th£ whole
quirements for bars have in¬ course of history. The develop¬

offi¬

cials

have

this

achieve

tech¬

industrial

herself, and India is stirring with

being wiped out.

are

the

Japan is, of course, the
outstanding example, but China
also is beginning to industrialize

bilization, it has been found nec¬
essary, even in the democracies,
to endow government with such

industry went on pretty much as
usual; there was practically no
bombing of cities from the air.

require¬

tool

deliveries

bar

come

year.

While it is conceded by WPB

machine

ization

first

few

wealth

and

industry.

and cultural monuments of civil¬

back of the front civilian life and

reduction in Small

Land on
March 9 said that this year's ship¬

Emory

soldiers;

accumulated

The

less.

coun¬

and

niques necessary to create heavy

appearance, but the
the fighting
was
still

We called

"In spite of

larger, more
involved, the

airplanes

'brunt

arms' contracts and continued de¬

"Admiral

than

inferior

not

are

ence

civilians

among

front, killing, burning, maim¬
women,
children, old and
young,
indiscriminately.
Whole
cities are wiped out, their popu¬
lations destroyed or left home¬

their

made

con¬

ou;.

completed, with its coke
consuming much gas.

were

primitive

are
being placed and
against the stop order. The second tainers
fabrication is under way by some
action will give DPC a completed
plants. Another inquiry for 40,plant through expenditure of only
a small
amount of money, since 000 tons of sheets for conven¬
the Chicago installation was al¬ tional containers has just come
most

rarely involved

But these yellow and

races

ing,

few thousand men,

brown

the

beginning of this
were
fought
by

few nations at any one time.
In
the
First
World
War

barge

shipping

new-style

the

wars

people in mental capacity.
They have civilizations far more
ancient, and in some respects per¬
at the front.
Great bombers drop haps superior to our own.
And
their
lethal
loads
on
crowded now they are becoming possessed
cities hundreds of miles back of of a knowledge of western sci¬

"battlefields," with relatively
simple and inexpensive weapons,

program current inquiries for 40,000 tons of 12 and 14-gage sheets

news

been

superiors, and
objects of ex¬

as mere

than
among soldiers, more destruction
of property behind the front than

casualties

let's look at the, rec¬

"armies" of

the heavy call

the landing

for

sheets

facts, the

natural

ploitation.
have

to look upon ourselves

them

upon

it ,over :

brown, until

white

strip.

narrow

addition

"In
for

to
the
western
bloc
in
Congress,
which has been exerting pressure
source

Down

century

activity is

better

and

noted in

that completion of

tion

cases

some

past fortnight hot and cold-rolled
sheet backlogs have increased ap¬

stopping construction of the

structural

used to say,
ord.

they are not increasing as rapidly
as a short time ago, in others they
have taken a spurt. Within the

labor.

mon

order

while

and

ducts

the

cold
facts of history, and be realistic."
Very well then, as A1 Smith

orders are accu¬

"Backlogs of

"face

men

mulating in most major steel pro¬

try

Facing the Facts
Mr. Wilson invites his country¬

and

come

their

lorded

have

races

yellow

have

There

And

provision for
remote
each week as requirements for
;he former press more heavily.

of indus¬

in cancellation

resulted

our

first fumbling efforts to organize
world peace ended in failure?

civilian goods seems more

"The manpower

we/have known it.

to sit supinely by and do

purposes

war

en¬

nothing about it, just because

and resulting larger

pinch is grow¬
ing tighter.
The big drive by
Selective Service, responding to
the urging of the President, has

for

steel

need

tirely new situation has arisen
within the past few years which
threatens the 1 very existence of

demand

"Expectation of easier

that

concentrate our attention. An

semi-finished products to be pro¬
duced during second quarter for

the

(Continued from first page)

equip¬
and
previous periods in the past two
issue of today (March lv), further

levels that problems of inadequate manpower, overburdened
ment and badly congested order books are returning rapidly

output. In addition to forcing ac¬

Others

Only Assurance Against Wars

at such frenzied

production of steel for war are

and

white

Holds World Peace Body

Again Rises—Givilian

Supply Hopes Dismed—lit! Backlog Grows
"Demand

1129

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4264

Volume 159

com¬

in 1942.

the

1942

figures

appeared in these columns Mar. 4,

1942, page 845.

Thursday, March 16, 1944

THE COMMERCIAL & FINANCIAL CHRONICLE

1130

costly litigation against

bjaseless,

Engineering Construction $117,870,020 loody's Bond Prices And Bend Yield Averages
Moody's computed bond prices and bond yield;
given in the following table:
'n Fcbrnary
/V

Civil

engineering construction volume in continental United
States totals $117,878,000.for February.
This volume, not including
construction by military engineers abroad, American contracts out¬
side the country, and shipbuilding, is 25% lower than in January,
1944, down 62% from the February, 1943, total, and is the lowest
reported to "Engineering News-Record" since September, 1935.
The
report made public on March 9 continued in part as follows;

;

Civil

construction

Private

Jan., 1944
(Four Wks.)

Feb., 1944
(Four Wks.)

$117,878,000
28,875,000
89,003,000

7,565,000

7,427,000

4,797,000

State and municipal.—
Federal

81,576,000

124,597,000

264,884,000

February construction brings 1944 volume to $274,396,000 for
two months, a decrease of 48% from the $533,068,000 reported

the
for
the corresponding 1943 period.
Private construction, $53,231,000, is
2% higher than for the opening two months of last year.
Public
work, $221,165,000, is 54% below last year.
State and municipal
volume declines 11%, and Federal work is down 56% and is pri¬
marily responsible for the decrease in public construction.
New

111.25.

100.65

104.48

113.70

111.25

116.41

118.20

116.41

100.65

104.48

113.70

104.48

113.70

116.22
116.22
116.41

111.44

.118.20

116.41

111.25

100.81

111.25

118.20

116.41

111.25

100.65

104.48

120.27

111.25

118.20

116.41

111.25

100.65

104.48

113.70

120.38

111.44

118.20

116.61

111.25

100.65

104.48

113.70

120.44

111.25

118.20

116.61

111.25

100.49

104.48

113.70

4—

120.43

111.25

118.20

116.61

111.25 .''100.49

120.44

111.25

118.20

116.61 .111.25

113.70

11304

i—120.42

111.25

118.20

116.2a

111.25

100.49

104.31
104.31
104.31

120.32

111.25

118.20

116,41

111.25

100.49

104.31

120.21

111.25

118.20

116.41

111.07

100.32

104.31

119.96

111.25

118.40

116.41

111.07

100.49

104.31

113.50
113.50

104.31
104.14

113.50
113.50

104.14
104.31
104.14

113.31

113.31
113.50
103.80. 113.50

;

100.49

119.69

111.25

118.40

116.22

111.25

100.49

119.45

111.25

118.40

116.22

111,25

100.49

Jan. ■'■'28—119.47

111.07

118.20

116.22

11—

111.07

100.16

119.58

111.25

118.40

116.41

111.07

100.16

119.57

21—_

111.25

118.60

116.41

111.25

99.84

116.41

113.70

113.70
113.70

116,22

116.61

tions

116.41'

111.07

99.36

118.80

116.61

111.25

100.81

116.22

110.88

99.04

104.48
103.30

113.70
113.12

116.61
116.02

117.00

111.81

99.36

103.47

114.27

117.40

ecuted

116.85

111.44; 119.41
107.44
116.80

113.89

108.88

92.35

97.16

111.81

114.46

benefit of

116.87

109.42

115.43

110.52

95.77

100.32

112.93

115.63

1943-

13,

2 Years ago
Mar.

117.43

106 21

115.63

U.S.

Individual

Closing

Prices)

1.81

3.09

2.74

2.82

3.10

3.71

3.10

2.74

2.83

3.10

3.71

3.48
3.48

2.97
2.97

3.10

2.74

2.83

3.10

3.71

3.48

2.97

1.81

3.09

2.74

2.83

3.10

3.70

3.48

2.97

2.83
2.84
2.84
2.83

1.81

3.id

2.74

2.83

3.10

3.71

3.48

2.97

1.8 1

3.10

2.74

2.83

3.10

3.09

2.74

2.82

3.10

3.71
3.71

3.10

2.74

2.82

3.10

3.72

2.97
2.97
2.97

appropriations for war

Federal

1943.

investment for

for

improvements

public

and

industrial

and

$5,575,000,

2.82

3.10

3.72

2.74

2.82

3.10

3.72

3.10

2.74

2.84

3.10

3.72

3.49

1.81

3.10

2.74

2.83

3.10

3.72

3.49

2.97
3.97

1.81

3.10

2.74

2.83

3.11

3.73

3.49

2.98

2.84

801,000, a figure 922% above the $15,539,000 reported for the opening
period

2.74

3.10

1.80

capital total brings 1944 volume to $158,-

and

departmental construction accounts for $90,832,000, Federal loans for

3.10

1.80

2.84
2.83
2.83
2.83
2.8?
2.84
2.84

1.83

3.10

2.73

2.83

3.11

3.72

3.49

2.98

1.85

3.10

2.73

2.84

3.10

3.72

3.49

2.98

2.83
2.83

1.87

3.10

2.73

1.80

1.79

4-——_

Feb.

two-month

1.80

3.48
3.48
3.48
3.49,
3.49

RFC loans for private industrial

OootriG Output For

Week Ended Mar. 11,1§44,

Shows 12.2% Gain Over Same Week Last Year
production of electricity by the electric light and

mated that the

industry of the United States for the week ended Mar. 11, 1944,

power

approximately 4,425,630,000 kwh., compared with 3,944,679,000

was

kwh. in the corresponding week a year ago,

increase of 12.2%.

3.50

2.98

2.82

3.74

3.11

3.74

3.10

2.72

2.83

3.10

3.76
3.79

3.50
3.49
3.50
3.52

2.99
2.99
2.98
2.98

2.8?
2.83
2.83
2.84

actions against corporate officers,
directors and others, would be

3.81

3.55

3.00

2.85

3.48

2.97

2.82

measurably mitigated by:

3.70

4.25

3.93
3.54

3.07
2.94

2.93
2.78

3.11

2.72

2.83

2.74

2.84

3.12

3.09

2.71

2.82

3.10

2.08
1.79

3.31

2.81

3.09

2.68

2.96
2.80

3.11

3.13

1.79

3.23
3.07

3.79

1 Year ago

3.20

2.76

2.88

3.38

2.87

3.14

3.01

4.0.2

3.73

3.01

2.87

3.33

2.07

2.02

1943-

13,

4.32

.3.95

3.19

3.02

2 Years ago

1942.

Mar.-14,

Institute, in its current weekly report, esti¬

3.72

3.11

1.87

Mar.

computed from average yields on the basis of one '.'typical" bond
;3%% coupon, maturing in 25 years) and do not purport to show either the average
evel
or
the average
movement of actual price quotations.
They merely serve to
illustrate in a more comprehensive way the relative levels and the relative movement
)f yield averages, the latter being the true picture of the bond market.
tThe latest complete list of bonds used in computing these indexes waspublished
in the issue of Jan. 14, 1943, page 202.
♦These prices are

The output for the week ended Mar. 4, 1944, was 13.1% in excess of

INCREASE

OVER

YEAR

Mar, 11

Major Geographical DivisionsNew

England

Feb. 26

Mar. 4

Feb. 19

7.0
-

Central Industrial

8.4

7.5

5.9

12.6

12.5

13.8

13.4

8.9

Middle Atlantic

8.8

10.5

West Central

5.7

Rocky Mountain

6.4

11.2-

•

7.1

13.4

5.6

14.4

7.2

9.4

29.3

•29.5

27.2

MOODY'S
—

10.9

AVERAGE

WEIGHTED

YIELD OF

200

COMMON STOCKS

Utilities

(25)

6.5%

Banks

6.6%
1.9
5.8
6.8
6.3

DATA

12.2

13.1

WEEKS

RECENT

FOR

1125)

Year,

Jan.' 15—,

j.—'

Jan.

3,288,685

1,619,265

3,952,587

+ 15.6

3,472,579

1,602,482

1,542,000
1,733,810

4,539,083

;

Jan. 22

+ 14.7

4,567,959

8 i....■.-...

1943

3,779,993
3,952,479

+ 14.8

3,450,468

1,598,201

1,736,721

4,531,662

Jan.

3,974,202

+ 14.0

ovee

1943

1942

1929

1932

3,440,163

1,717,315

1,588,967

4,523,763

3,976,844

13.8

3,468,193

1,588,853

1.728,203

Feb.

4.524,134

3,960,242

+14.2

3.474.638

1,726,161

Feb.

12_

4,532,730

+15.1

3.421.639

Feb.,

19——

3,939,708
3,948,749

1,578,817
1,545,459

+14.3

Feb;

;

4,511,562

___

March

4,464,686

•_

___

4,425,630

3,423,589

1,512,158

1,699,250

14.2

3,409,907

1,519,679

1,706,719

3,946,630

+ 13.1

3,392,121

1,538,452

3,944,679

;

March

1,718,304

3,892,796

4,444,939

March

+12.2

1,702,570

3,357,444

3,928,170

1,537,747

1,687,229

3,357,032

3,946.836

1,514.553

1,683,262

1,480,208

1,679,589

3,345,502

1941
1942

1943—
1943

6.3%

„6.4

7.7

4.5
5.0
4.7
4.5
4.5
4.3
4.2
4.5

6.9
7.9
7.3

January,

1944

4,337,387

I--.-—

year,
year,

14.3

14.2

(Thousands or Kilowatt-Hours)

% Change

Week Ended—
Jan.

claim

1943

February,

March, 1943
April,
1943—
May, 19431943—

June,

19431943
September,
1943-.;—

July,

August,

October,

1943
1943

November,

—

1943-

December

January, .1944
February,

(10)'

(200)

5.5
5.5
5.5

7.8
7.4

5.7
5.5

7.0
6.7

5.5 5.5 \

4.9
4.6

6.2
5.8
5.5
5.4
5.5

3.8
3.7

6.2%

4.2%
4.73.9

6.6
4.8

5.4
5.1

4.1
4.1
3.9

4.0
3.9

4.4
4.3
4.5

4.0
4.1
4.0
3.9
4.1
4.0
4.0
4.0

6.8
6.6
6.2
6.4
6.8
6.6
6.5
6.6

4.6
4.6

1944

4.7%
5.4
r4.1
4.5
4.4

3.9
3.8
3.8
3.9
3.8

"3.7*

■

3.7
4.0
3.9
3.9
4.0

■

4.8
4.8
4.6
4.5
4.7
4.7
4.6
4.7
5.1
4.9
4.8
4.8

Stockholders' Derivative Suits Usually False

Summary @f Copper Statistics

The Copper Institute on Feb.

According To N. Y. Chamber Survey

11 released the following statistics
pertaining to production, deliveries arid stocks of duty-free copper:
SUMMARY

COPPER

STATISTICS

REPORTED

THE

COPPER

(In Tons of 2,000 Pounds)

Free Copper

"Crude

1939—1

Year
Year

1941

Year

Stocks

Period

Blister

818,289

814,407

134,152

159,485

1,001,886

48,537

142,772

—41,417

1,065,667

1,545,541

307

75,564

—48,671

1,152,344

1,135,708

1,635,236

65,309

+16,636

1,194,684

1943-

1,206,871

1,643,677

52,121

—12,187

192,201

179,909

226,311

1943—

100,456

105,589

129,631

Aug.,

1943—

97,413

100,077

147,135

Sep.,

1943

98,867

98,333

141,111 %

Oct.,

1943—

102,589

97,274

Nov., 1943—

99.340

102.136

Dec.,

1943—

98,553

1944-

95,902
96,299

—

1944—
♦Mine

smelter

tBeginning
domestic

55,097

-130,270
-

+ 12.292
—

5,133

53,726

45,844

534

129,212

47,148

5,315

138,881

52,027

2,796

104,644

115,850

52,121

6,091

16,713
10,255
13,188

15,632
610

92,781

101,779

45.800

3,121

87,128

124,532

36,489

9,171

1941,

—

2,664

shipments, and custom intake including

includes

deliveries

duty

paid

foreign

1,371

7,882

1,304
4,879
94

6,321

9,311

scrap,

copper

refineries,
stocks

consignment

and

exchange

their plants or warehouses.

§ Corrected.

of $100,000, to give secosts and expenses

saddled upon :
investing
public when such actions: prove %
groundless; now, therefore be it
v

the corporation and the

That
the

bill

State

the

the Committee
introduction of

Legislature

of the

York to amend the

of New

jCeneral Corporation Law of; the
state by the addition of a new
section

known

61-b

(1)

which, in effect, would
quire stock ownership

re¬

by the.'
plaintiffs at the time of the trans¬
action on which the complaint is
based and (2) require plaintiffs in
such actions holding less than 5%
of the class of stock they

warehouses,

but

not

including

claim to

represent, unless the stock so held
have

shall

value

excess

$100,000, to post in advance of the
trial of such action security, for
costs and expenses,

including

attorneys' fees, to which the cor- •
poration shall have recourse in'
the event that such actions prove

the

and at the discretion of
further
require
the'

court

time

ity upon showing that the security
provided is or may become in¬
adequate.

Indications that the vast

majority of stockholders derivative suits

against officers and directors of publicly held corporations are proved
ultimately to be unfounded and are prosecuted "principally for the
benefit of the plaintiffs' attorneys" have resulted from an 18-months

{1932

of such litigation, during
and through 1942, conducted

the period running back as far as
in behalf of the Chamber of Com¬

of the State of New York.^
The survey Was under the di¬ Committee.
rection of the Special Committee attorney, of

Litigation headed
by Thomas I. Parkinson, President
of the Equitable Life Assurance
Society of the United Stated and
Corporate

former President of the
two

other

Chamber.

members

of the
Law¬

Committee are Richard W.

another

rence,

the

Reis,

former President
and Arthur M.

Chamber,

member of the Executive

and

staff

his

Franklin

conducted

the

sur¬

for* the committee. ••
As set forth in a report which
came
before
the
Chamber
at

vey

meeting on March 2,
adopted on that date, the

the monthly
and

was

undertaken "with a
proposing measures tto
correct wrongdoing in corporate
affairs and at the same time avoid

survey

view

was

Commodity Index
Tuesday,

March

Wednesday,

7,————

March

8
—

—

March 10—
Saturday, March 11—
Monday, March 13——

Friday,

Tuesday,
Two

weeks

Month
Year

aero,

ago,

1943

High,

1944

High,

Low,

Feb,

250.7

250.8
29

248.8

248.6

13-

April

247.0

249.8

March

Jan.

" 250.4'

Feb.

March
Jan.

250.4

,250.3

14_;

March

249.7

250.1

Thursday, March 9

_■

Moody's Daily

Wood,

Exchange Place,

increase the amount of the secur-

merce

from

time

plaintiffs

The
for

consumption.

consumers'

value

which at present are

baseless,

Baseless Actions
Against Corporate Owners And Officers

67,208 \ survey

production

March,

36,489

(—)

Refined

+17,785

1,033,710

2 Mos. 1944_

Feb.

Decreases

992,293

July,

JJan.

Stock Increase (+ )

End of

Export

tDomestic

836,074

—

1942—

SYear

Refined

1,016,996

1940-

Year

to Customers

the

unless

shall have

Urges Legislation Designed To Curb

tRefined
Deliveries

Production

MEMBERS

INSTITUTE

U. S. Duty

represent,
held

excess

the

Latest

to
so

recommends
Yield

Insurance

(15)

Railroads

125)

Industrials

27.5

trans-.

complained of, and

"(b) by requiring plaintiffs in
such actions, if holding less than
5% of the stock of the class they

Average

Total United States

actions

Resolved,

7.5

16.8

Pacific Coast

actions at the time of the

10.3

;

Southern States—

adopting the rule applied;
throughout the
country requiring stock owner¬
ship by the plaintiffs in derivative'
"(a)

...v.

yields for the years 1929 to 1941, inclusive,
and monthly yields for 1941 are published on page 2218 of the June
11, 1942, issue of the "Chronicle." Monthly yields for 1942 are pub¬
lished on page 202 of the Jan. 14, 1943. issue.
The annual average

in Federal Courts

iootly's Common SlockYields

—Week Ended

desirable features of stockholders'.

stock

Jhe similar period ofH¥4T. ^:
PERCENTAGE

it is the conclusion
Special Committee on Cor-;
porate Litigation, based on the
results of the survey, that the un¬
"Whereas,

of the

3.10

1.85

1943

ber at the same time.

2.84

1944

LOW

Along with the report, adopted
on
March 2, the following reso¬
lution was adopted by the cham-^
.

2.83

✓

ligh 1943
;

2.97

Cor-.

General

2.84

3.10

1.86

2.97

the

poration Law, is imposed upon
the corporation.

2.73

3.11

1944—1—

High
Low

61-a

tion

2.74

1.87

private

1.86

28—

$62,394,000.

The Edison Electric

Jan.

such defense which, under sec¬

2.83

6-,

become

has

porate investors both by reason"
of the time required of officers,
and directors in the defense of
such actions and the expense of

Corporate by Groups*
R.R.
P. U.
Indus

Corporate by RatingsAaa
Aa
A
Baa

1.81

ill-founded, spec-

ulative^litigation

costly and burdensome to cor¬

1.81

Mar, 14--

for
the
plaintiffs' attor¬

neys.

Avge.

Govt.. CorpoBonds
rate*

the

principally

YIELD AVERAGES

BOND

(Based

1944—

112.75

109.60

96.85

91.34

107.09

112.93

MOODY'S

Daily
Averages

totals $11,-

117.80

„

1942_

14,

are pros¬

5. That such

1943-—.

♦

litigation.
actions

4. That such

1 Year ago

of 5% over the volume for the corresponding

new

outcome of the

118.60'

118.20

February

they have, no per¬
sonnel interest in the subject
matter of the action or in the

111.41
110.70

120.87

that

111.07

Mar.

hold

the corpora¬

few

•

3. That such stockholders

120.44

1943

commencing, suit.

116.22
116.41
116.41

119.41

LOW

are

brought by stockholders who.
frequently
purchased
the ir
shares
immediately prior
to

119.69

aigh

actions

such

That

1944_'_—

Low

construction.
The

publicly-;
held corporations
are proved
ultimate]y to be unfounded.
- ,
ficers and directors of

1944—

High

brought against of-

such actions

116.41
116.41
116.22

the volume, $10,129,000 is in State and municipal

sales, and $1,500,000 is in

bond

'$ 11. That the vast-majority of

116.41
116.22
116.41
116.41
116.41
116.41
116.22

113.70

629,000, an increase
month last year.
Of
t

116.41

Capital

capital for construction purposes for February

New

118.20

111.25

follow:

by Mr, Parkinson

Indus.

120.26

$306,242,000 $156,518,000
36,561,000
24,356,000
269,681,000.
132,162,000

construction..--—

P. U.
113.70

18_

Feb., 1943
(Four Wks.)

Public

R.R.
104.48

construction volumes for February, 1943, Jan-

construction

Corporate by Groups*

Baa
100.65

; 11L25

9—120.26

1944, and the current month are;

Private

111.25

120.26

findings of the survey, as
outlined in the report presented

Aa
116.61

of the taxpayers."

expense

The

Feb.

pared with its February, 1943, total.

Total U. S. construction.

118.20

directors '

and

officers

the time of the courts y %
consumed by such actions at the

and Vsave

Yields)

Corporate by Ratings*
Aaa

111.44

120.23.

corresponding 1943 month as a result of the 69% decrease
State and municipal construction is up 55% com¬

Civil engineering

Average

rate*

; ' 120.18

13—

in Federal work.

uary,

BOND PRICESt

Avge,
Corpo-

Govt.
Bonds

14_—

by 19%, but declines 21% from the month last year. Public work
is 33% below January due to the 34% drop in Federal volume and
the 2% decrease in State and municipal.
Public construction is 67%
under the

TJ. S.

1944—

Dally
Mar.

are

MOODY'S

(Based

Averages

month

February, $28,875,000, tops last

for

averages

^innocent

240.2

250.8
247.0

Volume

Number

159

THE COMMERCIAL & FINANCIAL CHRONICLE

4264

for Axis operations

base

in
by listing five
things the Argentine government
as

this

hemisphere

r
■>

could do which he said it had not
As of the close of business Feb. 29, there were 1,240 stock issues
aggregating 1,491,580,259 shares listed on the New York Stock Ex¬
change with a total market value of $48,494,092,518.
This compares
with 1,237 stock issues, aggregating 1,490,445,442 shares, with a total

market value of

$48,396,650,695 on Jan. 29.
making public the Feb. 29 figures the

Stock Exchange further

'said:
As of the close of business Feb. 29, NYSE member total net
borrowings amounted to $811,244,373 of which $502,299,323? repre¬
sented loans which were not collateralized by U. S. -Government
issues.
The ratio of the latter borrowings to the market .value of all

listed stocks, on that date, was, therefore/1.04%.
As the loans not
collateralized by U. S. Government issues include all -other types

precise
listed shares and their total

borrowings, these ratios will ordinarily exceed the

of member

between borrowings

relationship

market value,

following table listed stocks are classified by leading
industrial groups with the aggregate market value and average price
the

•

Tor each:
-—-Feb.

—-Jan. 31, 1944-

29,1944~—.

done, including: ///;./Z;/::-/'/Z:■: ■■
index, compiled by
1. Intern Axis diplomats, mili¬
public March 13,
attaches and other agents
advanced slightly to 137.0 in the week ending March 11 from 136.8 tary
who
are
still
at
liberty, even
in the preceding week.
A month ago this index registered 137.0 and
a year ago 135.4/based on the 1935-1939 average as 100.
The Asso¬ though the nation has severed
diplomatic relations with Ger¬
ciation's report continued as follows:
/
The increase in the general level of the all-commodity price many and Japan.
V;/.l
i

■

The

.weekly

National

commodity

wholesale

Fertilizer

Association

price

and. made

Gen. Pedro Ramirez, who

contributing factor to the fractional
commodity index.
Raw cotton was also the

advance in the allcause of the textiles

moving into higher ground.

The foods group continued to
as lower prices were quoted
white potatoes and eggs.
All other group indexes remained
unchanged at the previous week's level.
During the week price changes in the index were evenly bal¬
anced with three price series advancing and three declining; in the
preceding week three price series advanced and six declined; and in
the second preceding week the price changes were again evenly bal¬

group

530,555,182

Automobile

COMMODITY

WHOLESALE

PRICE

33.79

3,981,424.465

32.97

607,203, 350

17.15

—

Building

____ ___

Business and Office

Chemical-—
Electrical

566,"148,000

5,911,910. 832

61.68

416,293,137
5,959.738,654;

1,556.672 721.
778,864, 548

38.05

1,604,317,636
788,399,056

rGarment

■

968,479, 626

967,-198,407

—J

Petroleum—

'Retail Merchandising—i

236,148,920

28.02

1,679,926,803

23.97

17.3

Fuels

22,26 §

1,374,070,601
495,224,300

22.29

10.8

21.65

8.2

Textiles

29.41

5,995,488,320

29.55

7.1

Metals

35.74

6.1

36.05

3,721,101,844
2,625,078,296

34.53

683

36.05

1.3

572,871 142 7

522,731,814
96,963,967

51.34

.3v

17.63

17.58

Fertilizers

10.30

15,891,900

9.22

Farm

42.53

2,164,961.036

1944
139.0

137.6

146.1

Electric

(Operating)

Electric

(Holding)

™

159.6.

159.6 '

160.1

lowing

156.3

155.9

154.9

197.5

199.8

164.8

141.4

146.8

146.3

151.2

130.1

121.7

131.4

130.4

151.6

151.5

151.2

104.4

152.4
127.7

152.2
127.1

117.7

119.8

119.9

117.6
119.8 j

104,2

104.1

136.8

137.0

135.4

104.2

22.93

^Indexes

846,187,233

Miscellaneous Businesses

153,329.059

26.12

155,374,208

.26.47

Stocks—48,494,092,518

32.51

48,396,650,695

32,47

on;

1943,

13,

1926-1928

base

137.0

were:

March

11,, 1944,

106.7;

March 4,

106.6,

and

105.5.

—_

We give below

a two- year compilation of the total market
the average price of stocks listed on the Exchange:
Market Value

Price

•

1943—

35,234,173,432

24.02

Mar.

31^———

Mar.

31——32,844.183,750
30
31,449,206,904

22.36

Apr;

30—

21.41

May

29———

22.40

June

30——

22,73

July

31-—-

34,443,805,860
Aug. 3134.871,607,323
Sept. 30---—^—.-. 35,604,809,453

23.42

Aug.

31——

23.70

Sept. 30

24.20

32,913,725,225

-June-3 G=—-3M19,047,743

—

Price

' ' '
45,845,738,377
46,192,361,639.
48,437,700,647
48,878,520,886
47,577.989,240 ~
47,710,472,858
48,711,451.018

31.20
31.45
32.96
33.27
32.17
32.04
32.82

Feb.

—

value
Average

Average
Market Value

■

Oct.

30——

48,178,040,869

32.44

Oct.

31-

37,727.599,526

25.65

Nov.

30.

—

45,101,778,943

Nov.

30——__

37.374.462.460

25.41

Dec.

31-

—

47,607,294,582

30.33
31.96

Dec.

' 38,811,728,666

1943—

41,410,585,043

28-.16

Jan.

43,533,661,753

29.61

Feb.

29——

48,494,092,518

Nigh For February

Deliveries last month totaled

1,755,772 net tons, an increase of

"Suddenly, on /Feb. 25, under
24,985 net tons over January, and 64,180 net tons more than shipped well-known
circumstances, Gen¬
in February, 1943. Shipments in February, 1942, were 1,616,587 net
eral Ramirez abandoned the ac¬
tons, and in the same month of 1941, they totaled 1,548,451 net tons.
tive

conduct^of affairs. This Gov¬

For the 25 working days in February this year the average was ernment has""reasons to
believe
70,231 net tons, compared with 70,483 net tons in the like month of that groups not in sympathy with
last year.
In January the average was 66,568 net tons for 26 working the declared Argentine policy of

days.

joining the defense of the hemi¬
January 1, to February 29, the total Was 3,486,559 net tons, sphere were active in this turn of
highest in history for those two months, and an increase of 108,- affairs.
net tons over the 3,377,585 net fons delivered in the correspond¬
"The
Department
of
State
period of 1943. A daily average of 68,364 net tons was reached thereupon instructed Ambassador
51 days in the first two months of this year, compared with 67,- Armour on that date to refrain
net tons for 50 days in 1943,
from
entering official relations
In the table below we list the figures by months for various with the new regime pending de¬

the

32.57

974

ing
551

continental

United

States totals $44,579,000 for the week.
This volume, not including
the construction by military engineers abroad, American contracts
outside the country, and shipbuilding", is 13% higher than in the
preceding week, but declines 51% from the total reported to "Engi¬
neering News-Record" for the corresponding 1943 week and made
on

to say:

1944

Private construction is 10% above last week and 220% above last

result of the increased activity in large-scale private resi"dential building.
Public construction, is up 14% .compared with a

1941

■

1939

1940

April

1,682,454

n, 145,592

870,866

1,691,592

1,616,587

1,548,451

1,009,256

AS 747,427

——,—

1,772,397

1,780,938

1,720,366

931,905

845,108

1,630,828

.—

1,685,993

1,755,772

March

1.758.894

1,687,674

907,904

771,752

1.738.893

1,706,543

1.834,127

1,745,295

1,084,057

795,689

June

1,552,663

1,774,068

1,668.637

1,209,684

607,562

July

1,660,762

1,765,749

1,666,667

1,296,887

745,364

1,704,289
1.664,577

1,788,650

1,753,665

1,455,604

885,636

1,392,838

1,086,683

1,660,594

1,703,570
1,787,501
1,665,545

1,664,227

1.,719,624

May.

August-

year as a

1942

1943

1,730,787

January
February

September

-----

1,794,968

October
November

y-.

—

1,851,279

1,572,408

1,345,855

1,624,186

1,425,352

1,406,205

1,849,635

1,846,036

1,544,623

1,443,969

20,244,830
21,064,157
—"449,020'

20,458,937

14,976,110

11,752,116

*42,333

37,639

*44,865

28,615,137

20,416,604

15,013,749

11,707,251

December

current

week's

construction

Total

1944 volume to $358,386,000 for the 10-week period, a decrease of 49% from the $709,277,000 reported for the 1943 period.
Private work, $80,550,000, is
•30% higher than last ' year, but public construction, $277,836,000/is
57 % lower due to the 60% decline in Federal volume,

brings

Civil engineering

construction volumes: for the 1943 week/ last

mos.

adjust.—

Yearly
Total

—';

"Decrease.
-

Note—The

ject

hended

moiithlv shipments

currently reported during the year 1942, are sub¬

adjustment reflecting annual tonnage reconciliations.
These will
the cumulative yearly shipments as stated in the annual report.

be compre¬

Private
Public
State

/
construction

Mar. 11,1943 Mar. 2,1944
$90,400,000' '$39,411,000

construction

4,483,000

construction.

85,917,000
ZZ 2,089,000
83,828,000

and

municipal—-——

Federal

—1—-

In the classified construction

groups,

Mar. 9,1944

$44,579,000

gains

over

last week

are

United States Refrains From

Entering Into

sewerage,

Acting Secretary of

State Stettinius made known at Washington,
States has decided to refrain from enter¬

Marcli 4 that the United

ing official relations with the new Argentine regime pending develop¬
ments.
"This" said Mr. Stettinius "is the present status of our rela¬

exercise

and $4,000,000

Executive
Power."
In
the
Washington
"Post" of March 5 it was stated

tion

staffwriter

New

908,000.

the

capital for construction purposes for the week totals $13,It is made up of $9,908,000 in state and municipal bonds sales,

in corporate security issues. The week's new construc¬
financing brings 1944 volume to $173,861,000/a total 196% above

$58,759,000 reported for the ten-week period in 1943.

/"•;

are

bitter

war

with

sub¬
We

ruthless

plan has included
of the Western Hemi¬
To deal with such grave

whose

enemy

conquest

sphere.
on

purely technical basis
our eyes to the

would be to close

realities

the situation.

"The support by important ele¬
ments inimical to the United Na¬

tions

war

signed

effort of movements de¬

limit

action

could

United

"The

times had

States

close ties

already

matter of
has

all

with Argen¬

people. It
consistently hoped, and con¬

has

housing and public buildings.

sphere, we must look to the
stance rather than the form.

tina and the Argentine

•

commercial building and large-scale private
Increases over the 1943 week are in tions with the existing Argentine regime." The disclosure that dip¬
waterworks, industrial buildings, commercial building and large- lomatic relations would not be entered into with the new regime,
scale private housing, and earthwork and drainage;
Subtotals fpr the followed the transfer of power on<£
week in each class of construction are: waterworks/$752,000; sewer¬ Feb. 25 from the Government of ment of March 4 hinted that the
State Department
has evidence
age, $560,000; industrial buildings, $2,660,000; commercial building President Pedro Ramirez to that
and large-scale private housing, $11,328,000; public buildings, $19,- of Gen. Edelmiro J. Farrell,—the that the new government came
•544,000; earthwork and drainage, $424,000; streets and roads, $897,000; latter according to Buenos Aires, into power with the support of
and unclassified construction, $8,414,000.
:
v.
;/
being designated "Vice-President pro-Axis elements.; From the ac¬
waterworks,

"In all matters relating to the
security and defense of the hemi¬

only be
grave anxiety.

12,984,000

/14,335,000
26,427,000 '"' 30,244,000
9,151,000
1,592,000
17,276,000
28,652,000

is the present
relations with the

our,

existing Argentine regime,

taken

week, and the current week are:
•Total

status

issues

week ago, but is 65% below a year ago.

This

velopments.

periods since January, 1939:

engineering construction/ Volume in

The report went

tions with the Axis and indicated

Shipments of finished steel products by subsidiaries of the United that it
proposed to go farther in
Corp. in February were the highest on record for that
cooperating in the defense of the
month it, is announced. The daily average deliveries were slightly
Western
Hemisphere
and
the
under those of the corresponding month/last year, when there were
preservation of hemisphere secu24 working days, against 25 this year.
rity.

for

'public on March 9.

Ramirez.
On
Jan.
26,
1944, his Government broke rela¬

States Steel

32.47

48.396,650,695

27—

The

to
That

support

From

Feb.

Civil

the prosecution of the war;

Government had been headed by

U. S. Steel Corporation New

1944—

Jan.

considerations

General

26.39

•

United

"Prior to Feb. 25, the Argentine

Finished

21.62

29-:——

"The foreign policy of the

States since the beginning of the
war has been governed primarily

117,636^45
•

July

"Times" follows:

must remain so,

20.13

874,723,054

May

statement of Mr,

given in a Washing¬
ton dispatch to
the New York
as

87.49

-781,678,180

Apr.

The March 4
Stettinius

12.23

Utilities

with

respect to Argentina.

198.3

21.57

20.91

identical policy

159.6

folr

are

1,204,834,697

22,81

in¬

London

British

3,675,626,085

117,938,658-

the

2,233,290,855

'21.67

2.243,349,880

Cos.

1942—*

that

157.4

119.8

All groups: combined.

100.0
-

March

776,029,713

and

dicated

12.29

46:58

Operating Abroad—-:.
Foreign Companies

from

Information

148.5

117.7

—

—————

machinery

de¬

88.28

34.64

1,268;497,449

20.18

All Listed

institutions

signed to aid Axis interests.

1.210,513,607

518,682,000

'46.01

Gas &

5. Prevent business transactions

by Z Argentine

3,712,792,304

34.25

117

1,252,848

Utilities:

tions—which apparently still exist

applies, to our relations with any
country. That is the single upper¬
most point
in our policy, and

,512,872 142

■.

Tobacco
'

Communications

1943

1944
138.0

42.79

—.

53.83

17,770 387

2,151,472 947

—

;

materials—i_.

Chemicals and drugs.
Fertilizer materials

97,236 908

Rubber

Ship Building & Operating-—:
Shipping Services
'Steel, Iron & Coke

!
-

Building

communica¬

152.4
127.7

control

Further

151.9

Miscellaneous commodities—

21,54

Livestock

goods to the Axis.

104.4

6.07

23.83

Z/ prohibition

131.4

Grains

6.25

the

Enforce

130.1

—-

hotbed

against the smuggling of critical

148.2

—

Cotton

.28.85

2,624,039

•

Feb. 12, Mar. 13,

•

107

29,542

espionage activity.

164.8

Oil

Farm Products
'•

Feb. 25, had

the nation

199.8

Cottonseed

■

"23.0

243,159 025

Year
Ago

146.1

;

1,677,737 684
1,371,623 101
502,656 619
5,937,944 656,

—.

Machinery & Metals
Mining (excluding iron)
Paper & Publishing—

Mar. 4,

■

137.8

—

Fats and Oils

3,843,937 174

Band & Realty—
Leather

Miscellaneous

Mar. 11,

Ago

1944

Foods

26.93

45,026,384
•30,422,981

Group

■■

Month

Week

25.3

19.36

.>V.

Latest Preceding

Total Index

37.78

27.18

-15,445 536

•:

;

62.30

3.163,256,760

19.39
37.43
"

Gas

57.62

3,126,662, 339

■

;; 39.21

56.92

—„

Textiles

Sears to the

31.96

——

Food——■

Railroad-

32.35

26.76

Farm Machinery
,
Financial-—-

Sacta Group

412,941, 844

—1-

Equipment—

1935-1939—100*

16.54
27.24

.557,739, 534

L—1'

Equipment—

Edelmiro Farrell

yielded

fairly openly—between the Axis
agents and Axis territory.

INDEX

Compiled by The National Fertilizer Association

585,939,459
•

Mr. Stettin¬

Vice-President Gen.

described

22.90

4.080,762, 172

—

Aviation

office

of Axis

22.51

his

decline for the third consecutive week

WEEKLY

ius recalled that former President

for

anced with five advances and five declines.

521,491, 820

espionage

another

■

Amusement—

Axis

rings in Argentina.

Market Value Av. Price

Clean

index was due primarily to higher quotations for both light and
heavy hogs, which in turn caused a marked rise in the livestock and
farm products index numbers.
A sharp rise " in raw cotton was

that

Mr.

Ben

Stettinius

W.
in

Gilbert

his state¬

•

will

bring
into

take

her
the

that

steps

fully
so

Argentina

necessary

and

realm

solidarity,
play

hope,
the

completely

hemispheric
that Argentina will

part worthy of her great
traditions
in
the
world-wide
a

struggle on which the lives of all
of

the

cluding

American

Argentina,

countries,
now

in¬

depend.

The policies and types of action,
Washington present and future, which would
"Post" we also quote:-*
effectuate
this
full
cooperation
At a specially called press con¬
are fully known in Argentina, as
ference, Mr. Stettinius indicated
that Argentina is still being used in the rest of the hemisphere."
?
count indicated in the

the

tinues

The

Weekly Goal And Coke Production Statistics
of the

for War, U. S. Department

The Solid Fuels Administration

Excess of income

able

(after

December

output of Pennsylvania
which includes Sunday,
February 27, was estimated at 1,404,000 tons, an increase of 58,000 tons
<4.3%) over the preceding week. When compared with the produc¬
tion in the corresponding week of 1943, there was an increase of 161,000 tons or 13.0%.
The calendar year to date shows an increase of
7.7% when compared with the corresponding period last year.
The Bureau of Mines also reported that the estimated production
of byproduct coke in the United States for the week ended March 4,
1944 showed a decrease of 6,200 tons when compared with the output
for the week ended February 26, 1944.
The. quantity of coke from
beehive ovens decreased 5,200 tons during the same period.

G bonds

Life

insurance

inel. mine fuel

Total

average ___
2,008,000
•Revised.
tSubJect to current

Daily

1944

anthracite-—
coll. fuel_

Penn.

1,348.000

1,292,000

1,267,500

tCommercial production
Byproduct coke—
States total---

United

1,273,700

States

and

fuel.

colliery

tExcludes

operations.

STATES

PRODUCTION OP COAL, BY

ESTIMATED WEEKLY

■

(In

net tons)

estimates are based on railroad carloadlngs and river ship¬
subject to revision on receipt of monthly tonnage reports from district

(The current weekly
ments and are

and State sources or of

final annual returns from the operators.)
-Week Ended——r

—-—

Feb.

Feb. 26,

———

Feb. 27,

19,

1944

1943

1937

393.000

400,000

379,000

304,000

State

Alabama-!
Alaska

Oklahoma

5,000

6,000

94,000

111,000

50,000

179,000

197,000

180,000

186,000

1,000

Colorado..—

1,000

Carolina—

New Mexico

58,000

200,000

192,000

1,048,000

916,000

365.000

335,000

343,000
40,000

42,000

23,000

8,000

4—

Ohio

4,000

93,000

68,000

36,000

40,000

45,000

61,000

55,000

71,000

642,000

653,000

660,000

686,000

2,977.000

--2,990,000

-2,920.000

165,000

•

166,000

2,-813,000
119,000

3,000

4,000

16,000

—

;Teiinessee!!_——_—:

and

(bituminous

6,000
113.000

38,000

Pennsylvania (bituminous)—

136,000

127,000

112,000

404,000

454,000

307,000

26,000

33,000

36,000

46,000

2,322,000

2.218,000

2,517,000

1,009.000

932,000

974,000

731,000

211,000

195,000

1,000

12,390,000

**12,718,000

11,348,000

1,346,000

1,432,000

1,279,000

718,000

13,997,000

12,066,000

;—______

Washington

Virginia—Southern
Virginia—Northern

Wyoming
_
......
tother Western States-.——
...

bituminous

nite

the B.

13.822,000

13,921,000

Total all coal
•Includes

•;

2,052,000

B. C. & G.;
operations on the N. & W.; C. & O.; Virginian; K. & M.;
& O. in Kanawha, Mason, and Clay counties.
tRest of State, including

District and Grant,

the Panhandle

Mineral, and Tucker counties.
^Includes Arizona,
§Data for Pennsylvania anthracite from pub¬
ft Less than 1,000 tons.
♦•Revised.

California, Idaho, Nevada, and Oregon.
records

of the Bureau

of Mines,

Payments To individuals In December

Income

At Record Figure
Income

payments

According To OW!

American

individuals

during

December

Production Board, Treasury Department, the
Labor Department's Bureau of Labor Statistics, and the Federal
Commerce, -War

Reserve Board.

The advices from the OWI state:

"Available statistics indicate that Americans are increasing

their

earnings at a more rapid rate than they are spending them on con¬
sumer
goods and services.
Income payments to individuals during
1943, for example, totaled nearly $142,000,000,000, an increase of
22.4% over the $116,000,000,000 total for 1942.
At the same cime.
expenditures for goods and services increased from $82,000,000,000
in 1942 to $90,600,000,000 in 1943, or 10.4%.
However, this was the

for

in any one year,
pointed out, the 1942 figure being the previous peak.

"Expenditures for consumer goods alone totaled $12,335,000,000
November and December—including Christmas holiday spend¬

against $11,104,000,000 for the same two-month
This represented an increase of 11%.

ing—as
1942.

"Record

period in
*

payments to individuals were a contributory factor in

bringing money in circulation to the record total of $20,400,000,000
in December, the 46th consecutive month to show an increase.
The

comparable figure for December, 1942, was $15,400,000,000.
"Bureau of Labor

Statistics figures, showed that the general cost

increased 3.3% between December, 1942, and December, 1943,
while wholesale prices for the same period were held to a 2.2% rise.
The same statistics showed that the cost of food rose slightly more

of living

than 3.3%

during the same period."

quicksilver

stocks

supply, curtailment in out¬

put and imports is necessary to
stabilize
prices,
WPB
officials
contend!
However, WPB
feels
that

40.27
84.2 (cents)

and to

safeguard stocks

provide against all possible con¬
tingencies, at least a segment of
the domestic producing industry
should be kept in continuous and
substantial operation.
Silver

market for silver

London

eign

continued

silver

44%c.,

70%c. The

with domestic metal at

quotation for foreign,

Treasury's

silver held at 35c.

Daily Prices

price of electrolytic
(domestic and export re¬
finery), lead, zinc and Straits tin
The

daily

copper

pearing in the
Financial

those ap¬

from

unchanged

were

"Commercial and

Chronicle"

July 31,

1942, page 380.

Tungsten
Metals

in¬

has

Co.

Reserve

producers of
The pub¬ tungsten ore who have been ob¬
to say in taining a premium of $6 a unit of
W03 ($30 a unit) that their con¬
tracts
will be discontinued on

copper

proportions."

part:
Copper

are

that
the excellent
bookings for the
current month will result in the
Producers

largest

convinced

are

ninthly, deliveries of cop¬
record* In some quarters

per on

that deliveries of

is estimated

domestic

foreign

and

Requests for
are coming through,

and that month
an

160,000

tons.

165,000

April copper
be

for

copper

March will total between

also promises to

for fabricat¬

active period

ing.
Lead

"eligible"

formed

Mortgage Clinic To Be
Held In New York
"mortgage

1944

second

The

April 30,1944, under terms agreed clinic" of the Mortgage Bankers
upon by producers and the gov¬ Association of America will be in
ernment's buying agency. Action New York at the Hotel Biltmore
was
taken
because
"adequate April 13 and 14 and sponsored in
cooperation with the Northern
stockpiles" have been built up.
Jersey
and
Philadelphia!
The announcement has left the New
regular market for tungsten ore Mortgage Bankers associations, H.
unchanged. Whether Metals Re¬ Gr~Wo^ruff7^etroit7--President,
announced on March 11;
W. A.
serve intends to support the mar¬
ket at $24 a unit is a question Clarke, Philadelphia, who will act
as
moderator
at
the
meeting,
that trade authorities were asking
as the week ended.
Output at $24 George B. Underwood, Irvington,
will
be
substantial, it is felt N. J. regional Vice-President for
the Eastern states, and John C.
.

and consump¬
to decline over
the remainder of the year.
consumers,

among

Buying of lead was in fair vol¬
ume during the last week, involv¬
ing 5,850 tons, against 8,212 tons
in the preceding seven-day per¬
iod.
Call for lead is expected to
increase from now on until re¬

tion

expected

Thompson, Newark, a member of
the Board of Governors, will di¬
rect

Magnesium

conference.

two-day

.the

Members

the

New

Northern

Magnesium powder, magnesium Jersey and Philadelphia associa¬
tions met on March 8th in New¬
dust,
and
similar
magnesium
materials were placed under the ark to make preliminary arrange¬
quests for foreign metal to round
ments. Other Eastern associations
coverage of MPR 314, OP A an¬
out April needs are due for con¬
nounced March 7.
This regula¬ to participate are the Baltimore
sideration
in
Washington later
and
Pittsburgh
organizations.
tion provides ceiling prices for
this month.
March requirements
More than 500 mortgage and com¬
magnesium and magnesium alloy
are about covered, but purchases
mercial bankers, real estate men,
ingot.
Previously, powder and
against April's demands are es¬
title and trust company officers,
dust were covered by the General
timated at much more than 25%.
Maximum Price Regulation. Ceil¬ life insurance executives and gov¬
,

Despite recent improvement in
the demand for zinc, production
continues

excess

The statistics for February,
to become available, will

show

another

increase

stocks

hand.

Restrictions

needs

civilian

of zinc for

use

are

being

lifted

Galvanizing
has
picked up a little.
During the
last week, WPB
authorized the
slowly.

very

use

the

zinc

ing prices will continue to be the
highest prices individual sellers

charged during March, 1942.

consump¬

about

tion,

manufacture

Tin
Bolivia

exported the equivalent

3,934 metric tons of tin con¬
tained in ore during November,
of

according

press

what

monthly
for the first ten months
than

higher

average

.advices from

This total is some¬

that country.

1943.

the

ber

consigned to the United

Aluminum

the

price

Howe

Minister

Munitions

Canada announced last week

that

sold

aluminum

Canada to
the United States and the United

the

Aluminum

Co.

Kingdom has been reduced.
The
extent of the decline in the price
was

Reserve

proximately
aluminum

purchased

1,300,000,000
from

825,000
last

the

lb.

ap¬

Canadian

producer for delivery during "1942,
1943, and 1944.
The price origin¬
ally agreed upon was somewhat

tinplate

for the

will reach

announced
increase of 75,000
WPB

tons,

week, an

ments in tin

WPB

essential
basis
A"

/-.V

clinic

Chicago March 2

was

and 3

attended by about 450

of lending

representatives

insti¬

tutions.
.

The program on Apr. 13-14 will
primarily to problems

be devoted

affecting real estate financing now
and in the post-war

period. How

licies after the

war

and the extent

and kind of the new

building the

country will see in the post-war
to be

are

of the subjects

some

reviewed."

Contrary

•'

past

custom,

the

Association is opening the meeting
to non-members interested in new

building and real estate financing.

tons.

There were no

no* revealed.

Metals

quarter of 1944

second

The Association held its first 1944

maintain. period

States, trade authorities
Production

officials, mostly
expected.

agency

from Eastern states, are

private capital can participate in
financing housing for the low in¬
than one-half of come groups, federal housing po¬

exported during Novem¬

was

ernment

which

the total

of slide fasteners.

greatest amount ever spent for goods and services
OWI

120.4
132.7
101
113.8
153.9

1RG Ends Premium Price

Zinc

record high of $13,500,000,000, the Office of War Informa¬
tion said on March 2, in releasing the fifth of a series of monthly
economic stabilization summaries based on data from the Department
reached

—

1,000

and lig-

^Pennsylvania anthracite—

Deliveries

metal.

157,000

1,000

197,000
.u

12,575,000

Virginia

144,000
423.000

;

Utah

Total

lig¬

——.

lished

the

322,000

36,000

87.000

—

nite)

184,000

Dakota

South.

and
(lignite)

With

Dec., 1942

124.2
137.3
102.9

103.2
121.8
171.1
44.68
90.1 (cents)

is not expected to

69,000

•

$1135 per flask.

year

officially.

stated

was

move

lication further goes on

and

underwent little

in the week that;
yesterday. Quotations iii
York continued at $130 to
change

The

This
influence
domestic market for the light

of record

60,000

North

37,000

(bituminous

New

Markets," in its issue of March 9.
stated:
"Termination of premium payments for tungsten ore was an¬
nounced by WPB during the last week, reflecting a comfortable sup¬
ply situation. .The regular market for the ore remained unchanged,
but the price outlook became uncertain pending developments at the
mines.
Production and imports have been in excess of requirements
for some time. The price at which ♦>Canada is selling aluminum to the higher than that now prevailing
United States has been reduced, in the United States market.

116,000

lignite—

460 Million
23.746
283.2 Million

ended

"E. & M. J. Metal and Mineral

500,000

and

925,000

Michigan
Montana

Million
26.8 Million

Tungslen-Lead Buying Fair

Contracts For

546,000

___

853

that War Bond redemp¬
of emergencies such as
anticipated major expenditures and fixed

Non-Ferrous Metals

1,568.000

50,000

Activity in quicksilver was de¬
as
routine in character

scribed

quiet and unchanged at 23V2d.
The New York Official for for¬

575,000

183,000

Kentucky—Eastern
Kentucky—'Western
Maryland

Quicksilver

was

1,552,000

Missouri

Kansas and

week.

changed at 51.125c. all

Department pointed out
from month to month because

vary

574.000

Iowa

tWest

(1935-39=100)_

index

1,493,000

Indiana

♦West

;

adjusted

1,568,000

Illinois——

Texas

sales

tin, was un¬

99%

Chinese, or

•

Georgia and North

2,000

5,000
93,000

—

Arkansas and

March

Nov., 1943

121.4
175.5
Weekly earnings in manufacture
45.27
•Straight time hourly earnings—
90.6 (cents)
•Does not allow for shifts in occupation since October, 1942.

Retail

1,167,000

1,449,000

shipped by truck from authorized
tComparable data not available.
§Subject to

HRevised.

revision.

___♦

prices

medical expenses as well as
commitments.

and coal

coal,

dredge

1,442,500

162,700

155,800

150,600

washery

52.000

financial

15,042,000
13,959,000

1,220,900 11,658,900 11,298,700

total—

♦Includes

.United

food

coke—

Beehive

8__;

52.000

124.4
137.1

products

tions

Cal. Year to Date
Mar. 4,
Mar. 6,
Mar. 9,
1944
1943
1929

1,243,000 11,694,000 10,862,000
1,193,000 11,227,000 10,428,000

1,346,000

1,404,000

incl.

52.000

large, amounting to about a two-

____

The Treasury

Mar. 6,
1943

([Feb. 26,
1944

§Mar. 4,

•Total

Farm

ANTHRACITE AND COKE

—Week Ended

—

(October)—

Dec., 1943

Wholesale

(In Net Tons)
.

52.000

and the situation

11.447
260.4 Million

INDEXES

living—,

adjustment.

OP PENNSYLVANIA

ESTIMATED PRODUCTION

(Dec. 31)

outstanding

premiums collected

Cost

Mar. 6,
Mar. 6,
1943
1943
1937
12,575,000 12,256,000 114,525,000 109,191,000 95,339,000
2,095,000 2,043,000
2,094,000
1,985,000 1,737,000

1944.
12,050,000

and lignite—

52.000

•Including First War Loan Drive.

52.000

33.9

(sales to commercial banks

(Dec.)

52.000

6—_-_'.

STABILIZATION

(Federal, state, local)

sales

E F and

tMar. 4,
1944

"Mar. 6,

15.4

28.3

7
excl.)_*l,014
Million
Individuals making payroll savings
(December)—
24.5 Million
Amount purchased through deductions (December)_
355 " Million
Bond

War

STATES PRODUCTION OP COAL
(In Net Tons)
1
———-January 1 to Date

Feb. 26,
1944

TOWARD

FACTORS

———Week Ended——-

Mar. 4,

(December)

circulation (Dec. 31)
checking accounts (Dec. 31):
(Federal Reserve reporting member banks)

ESTIMATED UNITED

Bituminous coal

____

Money in

Personal taxes

52.000

•3—1

52.000

'52.000

Money in

Cost

March

52.000

• '

March

33.4
85.1
7
200 Million
20.4

27
52.4
6.1
48
Million

I_,

——

war

May

52.000

March

142
90.6

116
82

____

expenditures
of War Eond redemptions

Amount

;-f?/?,

April.

52:000

March

goods and services avail¬

consumer

over

;

;i' •''5'

March

1943 (Est.)

1942

taxes)-

expenditures

War

According to the U. S. Bureau of Mines,
anthracite for the week ended March 4, 1944,

payments, to individuals
Consumer goods and services available

period last year,

of that for the same

Annual,

follows^

nominally as

was

March

Figures for 1943 based on latest
monthly and quarterly figures are actual,

Income

4.2%, from the preceding week.
March 6, 1943 amounted to 12,Total production for the current year to date is 4.9% in

metal

in:'cents.a -pound V ■

otherwise noted.

available.

designated.)

•

AGAINST STABILIZATION

•

tons, a decrease of 525,000 tons, or
Soft coal output in the week ended
excess

estimates

otherwise

unless

is made available by the OWI: V.. V

summary

dollars unless

(In billions of

Government

Interior, in its' latest report, states that the total production of soft
coal in the week ended March 4, 1944, is estimated at 12,050,000 net

256,000 tons.

following

FACTORS
■v.

Thursday, March 16, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

1132

market develop¬

during the last

releasing .the
on

uses

of 52c. a
Qtrni + c

week.

metal for

the unchanged

pound for "Grade

mmlitv tin

"Forward

This

being

Thompson,

done,
secure

said

Mr.

representa¬

tive views of the various interests

influencing the role of private

en¬

terprise in construction financing
and

fields

after

the

war.

•

Commission made public on Mar. 11

The Securities and Exchange

and oranges, for onions and for rye flour and corn meal.
Compared with the corresponding week in March, 1943, average
prices for farm products are higher by 1%, while food prices are
lower by 1.8%.

"Industrial
continued

Commodities—Markets
show

relative

industrial

for

stability.

Quotations

commodities

1,088,820 shares.

The

for

Transactions for Account of Members*
ENDED FEB.

(Shares)

1944

26,

Total for Week

Total Round-Lot Sales:

March 11

goatskins,

•

98,110.

Total sales_____—
B.

Account

for

■

Dealers and Specialists:

Lot

WHOLESALE

+'+•

Fuel

7.43

6,600

1944
—0.2

*123.2

*124.2

122.8

122.1

122.0

—0.8

0.9

104.6

104.1

104.2

106.4

0.1

0.3

products

117.6

117.5

117.7

118.4

+ 0.1

97.3

97.2

83.7

83.2

leather

and

metal

and

121,600

Manufactured

613,900

farm

2.97

+ 0.1

JOther sales——-—

farm products

Transactions

Account

the

for

*103.8.
113.5

110.1

+ 0.2

3.3

100.4

99.9

106.2

104.4

104.1

which

and

tOther sales

*100.5

100.6

+ 0.1

*99.0

98.7

+ 0.2

*99.2

Total

and foods

*98.3

*98.2

96.6

*98 0

CHANGES

INDEXES

SUBGROUP

26, 1944 TO MARCH 4,

0.4

Paint

0.3

Cereal

and

53,180

+ 0.3

0.2

than

0.1

sales."

paint materials-

products
vegetables——
tile—-

0.2

farm
and

0.3

0.1

February

issued
of "bank debits," which we

millions

dollars]
Feb.

Feb.
1943

Feb.
'

Feb.

1944

1943

2,667

10,762

9,266

23,044

90,993

74,698

3,087

2,533

10,024

3.45

8,483

4,527

12,295

2,487

3,551
2,057

-14,540

Richmond

'2,467

1,872

7,862
7,603

6,251

8,431

34,078

27,945

1,603

6,278

984

4,337

3,372

2,232

1,882

7,257

6,216

2,006

1,532

6.275

5,203

6,221

4.716

19,087

15,586

10,868

Chicago
St.

Louis

1,943

Minneapolis
3.91

Kansas

Dallas

1,350

City—

Francisco.

Total, 334 centers—
New

York

JRound-lot

6,935

5,416

centers*

other

centers.

70,704

the national

series

covering 141

181,666

21,112

83,559
114,586

68,446

28,437

6.631

...

219,096

36,481

—

—_—

54,872

27,592

—

City*.

other

193

13.91

home-owner, Fred T. Back-

strom, New Haven, Connecticut
Savings and Loan Executive, said
a

has shown that in

survey

5,323

20,952

17,983

centers,

Members
Mr.

Souter

the

panel

Mr.

and

besides

Backstrom

available beginning

95,237

1919.

geles; Herbert N. Faulkner, Bos¬
ton; and N. W. Mitchell, WinstonSalem, North Carolina.
'
Elected to the Presidency of
the American Savings and Loan
Institute

its

natural

war

con¬

ference in

Chicago, held Feb. 2122, was Jack E. Barry, SecretaryTreasurer of the Oklahoma City
Federal Savings and Loan Asso¬
ciation.

Plumb,

succeeds

Charles L.

New York City.

officers elected

were:

Other

First Vice-

President, G. VanderEnde, Berk¬
eley,
Calif.,
Secretary
of
the
Berkeley Guarantee Building &
Loan

Association;
and
Second
Vice-President, Francis E. Ingalls,
Assistant Treasurer of the Lincoln

47,471
27,899

short .sales which;
with

reported with "other

associate Exchange members, their
v

•

Culling CostOf lorlgage iosiey Oiseijssed ill
Savings & Loan Institute Conference

are

exempted from restriction by the Commission's

"other sales."

§Sales marked "snort exempt"

are

Cooperative Bank, Lynn, Mass,
Eight
elected
tional

Jack E. Barry Elected Head of
cut

011

Feb. 26 in

forum discussion at the War

Conference of the American Savings and Loan Institute.

Robert T.

Souter, Chicago, Secretary-Treasurer of the Institute, which is the
educational 'organization of the business, said that such
services as collecting money ahead ^
of time for the property tax and allocation until higher percentage
paying the taxes for the bor¬ loans are paid down to a more
rower,
and helping accumulate conservative percentage of the
in
readiness
for
repairs property value, and "excess re¬
The Bureau of Labor Statistics' index of commodity prices in funds
when they are needed, actually serve" plans which would guar¬
primary markets dropped 0.2% during the week ended March 4,
lower the cost of money to the antee that portion of the mort¬
chiefly because of lower prices for livestock, grains, cotton, and
individual.
gage
exceeding
the traditional
certain fruits and vegetables, says the U. S. Labor Department on
of the loan to the
Six savings and loan executives percentage
March 9.
It adds that quotations for principal industrial commod¬
from coast to coast participated in value of the property, both of
ities were generally unchanged from the week before.
the
forum
which
it
is
stated which are being discussed in sav¬
At 103.4% of the 1926 average, the all-commodity index is 0.3%
ings and loan circles today. Also,
higher than at this time last month and one-half of-1% above a brought out that one important, it is
stated, the devices to include
effective way to lower the cost of
year ago, the Department states, adding:
v"
in the monthly payment on the
mortgage money in the post-war
"Farm Products and Foods—The decline of 0.8% in farm prod¬
loan
tax
and property
mainte¬
world will be by various devices
ucts and the 0.1% decrease in average prices for foods were princi¬
which help reduce the natural nance funds were cited as ways
to make safer loans at a lower
pally caused, by sharp decreases in market quotations for oats and risk involved in lending.
Cited
wheat, hogs and sheep, for cotton, eggs, and sweet potatoes, and as.
net cost to the borrower.
ways of reducing risks were
for -White potatoes in New York and Portland. Oregon markets. "builders'
In a discussion of the appraisal
pool" mortgage plans
special
reserve of the personal security in a loan
Higher prices y/ere reported for rye, apples (New York market). which involve
national

Wholesale Gomir.oriify Index Mines In Week
Ended March 4, Labor Dept. Reports

Governors

this

national

were

educa¬

ness;

Group

The effective cost of mortgage money to the borrower may be
in other ways than by decreasing the interest rate, it was

pointed out at Chicago
included witn "other sales." '

district
for

organization of the busi¬
Warren L. Milliken, Assis¬

tant

Treasurer,

calculating these percentages the total of members', purchases and sales is
compared with twice the total round-lot volume on the Exchange for the reason that
the Exchange volume; includes only sales. -

are

Walter
F.
McCaleb, Jr.,
Cleveland; Harry W. Allen, Phila¬
delphia; R. W. Little, Los An¬

3,490

tin

lot

47,471

firms and their partners, including special partners.

round

were:

++./';:.

"members" includes all regular and

tules are included

151,530

peace times, the average
home-owner- stays-in the same
house about seven years.

————

♦Included

purchases

*The term

;

0.6

Fruits and

Other

30,028

the Account of Special-

salesi-^^
i

♦Sales marked "short exempt" are re¬
ported with "other sales,"
tSales to offset
customers'
odd-lot
orders, and sales to
liquidate a long position which is less

FROM

Brick

1.1

York

11,260

Customers'short sales—

Total

Dealers—

1.8

0.7

140

f-......

124,150

Decreases

■

__________

Boston

172,730

i83,990

sales

Round-lot Purchases

160,835

Total sales.

124,090

______________

0.5

1944

products

Number

Federal Reserve District-

Ban

§Customers' other sales

Number

0.6

Philadelphia

200

JOther sales-

433,582

Short sales

0.6

than

Mar. 10, its usual monthly summary

Mew

52,980

Short sales

sales

Round-lot Sales by Dealers-

*100.6

\tlanta

Total purchases-

427,430

$14,180,839

+ 0.3

*100.6

[In
6.55

Total-

ists—

Customers' .total

SUMMARY BY FEDERAL RESERVE DISTRICTS

43,805

Total sales-.

6,152

sales—

Dollar value

than

other

poultry

give below:

Other transactions initiated off the floor-

—___.

other

.92.9

Cleveland

41,340

JOther saigs

short sales-—

1.8

Bank Debits For Monlla Of

3,500

—

2.5

1944

•

1.7

93.2

Total safes

for

17,236

that

37,840

—

sales

Customers'

Number

184

—

normal

Short sales

total

Lumber

44,045

Total purchases——

17,102

93.5

the floor-

—

sales

*99.2

other

81,910

JOther sales

sales.

other

+ 0.7

93.5

93.5 •

—

■;

89,470

Short sales

short

+ 0.3

—0.3

91.0

111.2

—

7,560

Customers'

'•Customers'

+1.4

93.0

112.4

goods

Livestock

72.985

Other transactions initiated

Sales)
Number of Orders:

93.3
113.0

*100.6

—

Purchases by

Dealers—

—0.4

93.3

*113.7

—3 Months Ended-

■

16,774
457,490

$18,460,918

(Customers'

The Board of Governors of the Federal Reserve System

Total purchases

0.5

Hides and skins--—

Total sales—

♦Customers'

1,227,595

JOther sales.

Number

0.1

100.4

Furniture

Short sales—

Transactions

Total

orders—.

0.5

Increases
Cotton

15.18

sales---.--——1,239,195 f

they are-^registerecM-L.
Total purchases-

Odd-Lot

3.5

___

11,600

'—:

—

1. Transactions of specialists in stocks in

1944
for Week.

Number

113.7

articles

FEB.

Members:

EXCHANGE

Dealers

+ 0.6

93.3

products

commodities

Grains

Total for Week

Short sales--———-—

Sales

ODD-

DEAL-

ON THE

(Customers'purchases)

Customers'

Total Round-Lot Sales:

Odd-Lot

0.7

+ 0.1

1.8

100.4

105.9

PERCENTAGE

1944

;

96.8

1.0

♦Preliminary.

Stock Sales 6n the New York Curb Exchange and Stock
Transactions for Account of Members* (Shares)

—0:1

80.9

*113.2

commodities

411

All

Round-Lot

26,

+
___

113,7

*103.8 *103.8

557,750

WEEK ENDED FEB.

—

STOCK

THE

FOR

ODD-LOT

SPECIALISTS

AND

Week Ended March 4,

0.5

100.4

goods

56,150

Total sales.

0.3

103.9

*103.8

products—

products

700,379

JOther sales-

113.7

products

allied

Semimanufactured

5.740

purchases,

Total

ACCOUNT

ERS

1943

1944

1943

Raw materials

115,860

Short sales—

3-6

2-5

102.9

Kousefurnishing
4.78

135,469

—-—

3-4

1944

Miscellaneous commodities

182,490

_______

3-6

*103.1

Chemicals

Total-

Round-Lot

TRANSACTIONS

LOT

175,890

—

2-5

2-19
1944

Building materials

231,510

purchases

2-26

products
lighting materials

Textile

Total sales-.

STOCK

Odd-Lot

*103.3

and

Rides

Other transactions initiated off the floor-

Total

and

1944/

1944

products

Metals

JOther sales—

■

*103.6

*cods

43,810

309,810

JOther sales——

MARCH

104.5

Farm

333,400

Short sales

Total

ac¬

dealers

266,000

Total purchases—
; - 'Short, sales-.—.

ENDED

1944

Groups-

commodities

All

______

Total sales-

WEEK

*103.4

Commodity

2. Other transactions initiated on the floor-

••'

odd-lot

specialists who handled odd lots
the New York Stock Exchange,
continuing a series of current
fugures being published by the
Commission.
The
figures
are
based upon reports filed with the
Commission by the odd-lot deal¬
ers and specialists.

Percentage changes to

Total sales

•

the

odd-lot

(1926=100)

3-4

JOther sales

for

of all

(1) index numbers for the principal

FOR

PRICES

Mem¬

specialists in stocks in which
they are registeredTotal purchases—
Short sales——;

ransactions
count

and (2) percentage changes in subgroup indexes
from Feb, 26 to March 4, 1944:

Transactions of

Total

showing the daily volume of stock

a year ago,

Except for the Odd-Lot Accounts of Odd-

bers,

and

ago,

Exchange

public
on
summary for the week

ended March 4 of complete figures

groups of commodities for the past three weeks, for Feb. 5, 1944, and
March 6, 1943, and the percentage changes from a week ago, a month

4,328,350

—

Transactions

Round-Lot

■

sales---—4,230,240.

JOther

The following tables show

and

made

Dollar Value

:'Short--sales_i.-^^-i-.--^——A-------

V.\

Securities

Round-tot Stock

Stock Exchansre and

•Total Rourid-Lot Stock Sales on the New York

WEEK

■

Commission

the account of all rosin, and turpentine averaged slightly higher. Lower prices were
Feb. 26, continuing
reported for roofing tile, No. 1 common white oak, and spruce lum¬
by the Commission. ber. A substantial downward revision in
refrigerator prices by one
in these figures.
manufacturer resulted in a decline of 0.3% in the index for houseTrading on the Stock Exchange for the account of members furnishing goods.
Except for these changes prices of major indus¬
(except odd-lot dealers) during the week ended Feb. 26 (in round- trial products remained unchanged from the preceding week.
lot transactions) totaled 1,314,279 shares, which amount was 15.18%
The following notation is contained in the Department's announce¬
of the total transactions on the Exchange of 4,328,350 shares. This ment:
compares with member trading during the week ended Feb. 19 of
Note—During the period of rapid changes caused by price con¬
1,509,229 shares, or 15.98% of the total trading of 4,721,580 shares. On
trols, materials allocation, and rationing the Bureau of Labor Sta¬
the New York; Curb Exchange, member trading during the week
tistics will attempt promptly to report changing prices.
Indexes
ended Feb. 26 amounted to 344,825 shares; or 13.91% of the total
marked (*), however, must be considered as preliminary and subject
volume on that exchange of 1,239,195 shares; during the Feb. 19 week
to such adjustment and revision as required by later and more com¬
trading for the account of Curb members of 314,770 shares was 14.86 Jo
plete reports.

round-lot stock transactions for
members of these exchanges in the week ended
a series of current figures being published weekly
Short sales are shown separately from other sales
the. volume of

;

NYSE Odd-Lot Trading

figures showing the volume of total round-lot stock sales on the
New York Stock Exchange and the New York Curb Exchange^ and

of total trading of

■

1133

lemons

Trading On flew York Exchanges

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4264

Volume 159

■'

Norwood

Co¬

operative Bank, Norwood, Mass.;
Christian W. Staugaard, Executive

Vice-President, South Bergen
Savings
&
Loan
Association,
Wood-Ridge, N. J.; Nicholas W.
Mitchell, Jr., Assistant SecretaryTreasurer, Piedmont Federal Sav¬
ings and Loan Association, Win¬
ston-Salem,
N.
C.;
Donald
L.
Adair,
President,
South' Bend
Federal Savings & Loan Associa¬
tion,
South Bend, Ind.; S. E.
Smith, Vice-President, Farm and
Home Savings & Loan Associa¬
tion,
Nevada, Mo.; Thomas J.
Sewell,
Interstate
Building
&
Loan
Association, Kansas City,

Kan.; Edward O. Morgan, Secre¬
tary-Treasurer,
Southern
Cali¬
fornia Building & Loan Associa¬

tion, Los Angeles; and G. Ellwood

Khapp, Executive Vice-President
of

the

ings

Friendship

& Loan

burgh, Pa.'

Federal

Sav¬

Association, Pitts¬
.

El
1:1

CHRONICLE

THE COMMERCIAL & FINANCIAL

1134

■

Thursday, March 16, 1S44

Daily Average Griide Oil Production For Week Market Value Of Botids ObiStock Exchange
As of the

10,550 Barrels

Ended larch 4,1044 Decreased

crude oil production for the week ended

the

following

price for each;

recommended by the
month of March, 1944,

for War for the

Administration

Petroleum

State,
U.

Business

(incl.

etc.)

: Food

101.70-

13,248,000

101.13.

105.00

105.25

102.94

15,787,500 v
47,029,750

35,975,000

102.79

35,856,250

102.45

53,768,681

103.13

53,832,643

102.97

ada;-. Utah,
Louisiana,
Oregon,
Arizona, Colorado, North Dakota,

267;277s75+

—..;i;

266,763,922

—^

Rubber

Shipping, services
Steel, iron and coke__
\

•State

Actual Production

Allow-

Week

Recommen¬

ables

Ended

dations,

Begin.

March

Mar. 1

"P. A. W.

Mar.

Oklahoma

328,000

327,000

t327,600

Kansas

285,000

269,400

t272,800

Panhandle
North

East Texas

electric

342,300

275,550

299,100

1,200

2,500

100,700

88,600

Texas

1,838,000 U,854,302

——

108.42

North

60.330,000

107.73

111.29

1,182,372,174

110.82

and

31,183,313

105.60

105.99

90.35

14,512,250,570

88.98

66.11

1,334,429,352

65.66

91.20

748,220,339

90.63

—14,600
+ 2,300

386,950

323,400

All listed bonds

288,800

1,600

516,200

173,050
354,200

The

1,335,120,611
-

752,818,967.

96,837,573,171

following

table,

compiled

100.21'

1942-

Market Value

Louisiana—

347,700

372,700

360,150

950

360,000

340,100

76,700

___

78,591

; 79,300
43,600

500
250

78,900
43,400

72,100
54,950

57,584,410,504

95$I3

Mar.

31—

71,575,183,604

58,140.382.211

95.97

Apr.

30..

71.857.596.488

46,000

——

57.923,553,616

95.63

May 29—

81,048,543,830

99.47

59,257,509,674

95.64

June 30—

80.704,321,646

99.64

Apr,

Alabama

Florida

50f

Illinois

215,000

Indiana

218,300
13,100

13,600

Sept. 30—
Oct,

(Not incl. 111., Ind.,
Ky.)

72,200

Kentucky
Michigan
Wyoming

52,000

24,000

Colorado

7,000

Mexico

111,700

Total East of Calif.

—

:
.

3,596,150
808,750
4,404,900

80,109,269,964

99.23

80,149,558,292

99.37

98.18

Oct;

30—

90,501,768,934

99.45

96.48

Nov.

30—

90,076,888,558

99.02

96.11

Dec.

31—

90,274,071,634

99.38

96.70

Jan.
.

31—

90,544,387,232

29-

96,837,573,171

100.21

Total United States

4,368,300

recommendations

4,412,725

production of crude

oil

-gas derivatives to be

state

and

only,

and

allowables,

do not

include

shown above, represent the
of condensate and natural

amounts

Gollonseed Receipts To
On March

includes

shutdowns

fields
8

and

which

down

for

being

required to

allowable

ment

Fefereary 29

showing cottonseed received, crushed, and

seed products
the

manufactured, shipped out,

months ended Feb.

seven

COTTONSEED

for week ended. 7:00

are

for

exempted

for

from

March

exemptions

were

ordered

were

the

entirely

calculated

a.m.

entire

and

month.

March 2, 1944.

31-day basis and
the exception of

With

certain

the

days,

entire

fields

other

state

was

for

ordered

which

State-

operate leases, a total equivalent to 8 days shutdown time during the calendar
month.
SRecommendation of Conservation Committee of California Oil Producers.

CRUSHED,

1943

United States

RUNS

AND
1

STILLS;

UNFINISHED

PRODUCTION

GASOLINE.

GAS

OIL

GASOLINE;

STOCKS

DISTILLATE

AND

RESIDUAL FUEL OIL, WEEK ENDED MARCH 4,

■

hand, and cotton-

Figures

plus

this

reported totals

Bureau of Mines basis——

Potential

District—

% Re-

Rate porting

•Combined: East Coast
Texas Gulf, Louisiana
Gulf,
North

Finished

tStocks tStocks
of Gas

of Re-

Runs to Stills Inchid. and UnOil and
sidual
Daily
% Op-Natural finished Distillate
Fuel
Average erated Blended Gasoline Fuel Oil
Oil

•

'
,448

90.0

2,197

89.7

6,430

83.9
;

73.1

309

2,105

—

371,304

10,260
29,865

34.805

nance

108,749

216,140

101,370

202,768

9,171

17,836

189,597

195,762

177,185

187,735

15,005

7,974

Training

272,809

373,811

230,247

287,772

45,828

95,226

889,270

997,203

803,939

896,238

130,000

133,920

102,716

143,613

80,605

101,722

24,514

43,182

Tennessee

Texas—.
All other states-

hand Aug.

14,757

15,123

1,102

175

Season

Aug. 1

]

1943-44

"23,283

pounds)-]

1942-43

oil

222

150.0

(500-lb.

300

2,054
15,697

347

545

Grabbots,

9,132

30,902

(500-lb.

(tons)

2,100

bales) —|
}
bales)
(
motes, &c.j
bales)
J

(running

basis Feb. 26,
U.

Bur.

4,831

4,344

89.9

13,267

3,091

33,145

1944-

4,831

87.1

4,377

90.6

13,183

85,248

33,766

51,387

10,034

92,765

34,005

69,044

1,497,273
1,616,719
754,628
881,841

69,412

1,446,403
1,748,312

11,964

§963,871

746,861
891,487
803,482

1,099,758

58,507
19,731

842,586

556

0;:

34,472
§296,316
300,467

16,300
24,618

23,374

14,106

37,228

31,947

23,644

48,736

39,670

1,098

15,758

229

Petroleum Administration

for

War.

tFinished,

75,063,000
in transit

Note—Stocks of kerosine at March 4, 1944 amounted to 7,013,000 barrels, as against

week earlier and 5,769,000 barrels

year before.

Program

(ESMWT)

the United States Office of Edu¬

cation,

it
was
announced
on
March 9 by Dean John T. Madden.
The course will be given by Dr.
Louis T,

Stevenson, former speci¬

alist of the War Production Board
and now priorities specialist of
the

American

Association.

Paper

Dr.

to feature the

and

Pulp

Stevenson

plans

priority and alloca¬

tion problems of the

pulp and
industries, such
printing and publishing.
per

pa¬

Other

new

free

courses

begin¬

ning at the New York University
School

include

Commerce

cost

1,473

this

accounting

week
war

pounds held by refining and manufacturing
12,776,000 pounds in transit to - refiners and con¬
1944 respectively.

bilization, labor relations, indus-;

13,826,000

Aug, 1,

and

19,387
32,710

84,430,000

and

3,150,000 and
1943 and Feb. 29,

pounds in transit to manufacturers of shortening, soap,
1, 1943 gnd Feb. 29, 1944 respectively.
Does not include winterized nil.
.

3,734,000 and 2,773,000
Aug.

-3,595

barrels; unfinished, 11,028,000 barrels.
tAt refineries, at bulk terminals,
and in pipe lines.
§Not including 1,351,000 barrels of kerosine, 4,513,000 barrels of
gas oil distillate fuel oil and 8,590,000 barrels of residual fuel oil produced during the
week fended March 4, 1944, which compares with 1,726,600 barrels, 4,558,006 barrels
and
8,952,000 barrels, respectively, in the preceding week and 1,438,000 barrels,
3,809,000 barrels and 7,023,000 barrels, respectively, in the week ended' March 6, 1943.

324,721

43,295

1942-43
1943-44
1942-43
4943-44
1942-43

138,545

part of the Engineering,

■(•Includes 3,196,000 and 10,043,000 pounds held by refiners, brokers, agents, and
at places other than refineries and manufacturing establishments and

51,175

Mines

request of the

7,129,000 barrels

Feb. 29

*139,678

warehousemen

basis March 6, 1943

"At the

87.1

On hand
/

+339,365

44,118
135,927

—

HAND

evening

industries,
wartime
purchasing
procedures, control of wartime
factory costs, office management
for war industries, wartime
wage

"Includes

' ;

967,920
1,092,670

1835,806
938,392

-f 1942-43
) 1943-44

;

Llnters

sumers

1944

Feb. 29

1,130,219

1943-44

2,904

Aug. 1 to

Feb. 29

34,460

——.-J 1942-43

Hulls

361

Aug. 1 to

310,191

18,542

5,904
1,521

1943 respectively.

AND ON

1.004,085

+207,409

190,100

1,291

59.6

OUT,

tons

Shipped out

1942-43

1943-44

8,277

98.4

SHIPPED

1943-44
-

Cake and meal

19,262

MANUFACTURED,
On hand

Item—

establishments
basis March 4,

PRODUCTS

and 81,928

Produced

164

1,274

1 nor 38,030 and 39,520 tons reshipped for 1944 and

COTTONSEED

1,252

Total U. S. B. of M.

—

1,560 and 4,665 tons destroyed at mills but not 90,336

5,108

170,633

con¬

given in

free

new

courses which began this week at
the New York University School
of Commerce, Accounts and Fi¬

171,031 ;

2,674

804

24,976

155,157

80.0

89.9.

48,804

nine

5§9,086

92.6

817

41,791
54.219

352,373

223,963

Hull fiber

California

123,404

96,132

306,809

one

184.140

119.1

58.3

89,069

84,849
289,945

291,818

trol of materials will be

190,062

26.9

327.72SU

17,897

537,903

763

141

143,761

341,926

159,521

333

8
—

463,956

,119,744

33,000
.

257,111

85.2

District No. 3

12,493

fee laterials Gosilrol

733,478

80.1

35,906

55,572

756,765

193,857

824

87.2

218,611

42,725

669,152

218,862

416

—

District No. 4

■

697,394

(tons)
130

222,985

73,078

1943

248,278

(thousand pounds)

Appalachian—
District No. 1_——

1944

3,653,938 '

55,215

—^._.

(thousand
'

37,323

1943

1944

Louisianna—

Jrude

„

Feb. 29

256,706

Refined oil

^Louisiana-Arkansas,
Texas-

tStocks

fineries

Crude

Aug.'1 to Feb. 29
3,237,773

Arkansas-

at Re-

Capacity

District No. 2

the

NYU Ooirse On War-

On hand at mills

4,333,440

California

SGasoline

Ind., 111., Ky
Okla., Kans., Mo
Rocky Mountain-

1, the

Instruction in the wartime
Arizona

"Includes

Production
Dally Refining

(TONS)

ON HAND

Crushed

Oklahoma

an estimate of unreported Amounts and are
a

AND

•

South Carolina

1944

include

section

——therefore on

'and inland

March

679, compared with 263
like period of last year,

North Carolina——

AND

(Figures in Thousands of barrels of 42 Gallons Each)

ber 1, 1943, the beginning of the
Association's
current
year,
was

Mississippi

FINISHED

FUEL

1943.

hand, and exported for

3,818,149

AiaDama—

GeorgiaCRUDE

29, 1944 and 1943.

RECEIVED,

Aug. 1 to Feb. 29

shut

definite dates during the month being specified; operators only
shut down as best suits their operating schedules or labor needed

days,

becoming new mem¬
bers of the A. B. A. since Septem¬

13, the Bureau of Census issued the following state¬

♦Received at mills

♦This is the net basic
several

the

produced.,

tOklahoma, Kansas, Nebraska figures

shutdowns

also

total of banks

"F.A.W.

■

Dakota

try became members of the Ay B.
A., compared with only seven in

97.79

■

South

A. State Vice-President.

February

3,887,200

825,500

which

During the month of February,

99.78

Feb.

97.47

71,038,674,932
—71,346,452,852

Mr.
Matzke
Vice-President

91 banks in all parts of the coun¬

Jan,

Feb.

the

Merrill,

tion Committee was assisted
by
Milton R. Morgan, State Bank
Commissioner for Virginia.

1944—

1943—

Frank, T,

and Thomas E.
McConnell is Regional Vice-Pres¬
ident. In this State the Organiza¬

99.35

31—

Sept. 30—

64,843,877,284
64,543,971,299
^0.583,644,622,

Dec._ 313;—3—

775,000

—10,550

80,352,221,151

Aug.

62,765,776,218

30-—

3,112,200

4,200

July 31—

96;08

commit¬

under

Vice-President,

6,650
96,600

—14,750

95.50

95.76

—

31———

•

Nov.

70,400
17,900
57,900
87,250
17,800

112,950

1,000

3,587,225
§833,400

833,400

71,300
21,400
52,850
95,200
20,900
7,700

112,900-

111,700

3,534,900

—

93,100
20,800
8,250 '

93,000
I

23,050
52,500

24,000

Montana

2.550
'+ 3,550
+
400
—
750
' —:t

74,800

59,112,072,945
61,277,620,583
62,720,371,752

—

Aug. 31

Eastern—

California

—

July; 31

238,000
16,400

210,050
13,250

+11,350
—
50

30
29

the

are

Virginia, John C. Davis is State

98.69

May

Vice-President, and Her¬
Matzke, regional Vke-

A. B.

98.24

June

Mississippi

New

located, and Richard Banfield is

;

Feb.
Mar.

Total

regional

Price

--Market Value

1943—

Ben

Dean, regional Vice-

Montana

President.

Average

Vice-President,

man

com¬

area

Average
Price

;

activities

State

the Exchange:

Arkansas

The
tee

99.78

two-year

committee's

out

State

direction

90,544,387,232

gives

us,

the

carried

President.

parison of the total market value and the total average price of bonds

89,500
250,600

76,750
283,250

400
550

Roberts,

Foreign companies

■

Carolina

work

78.77

Foreign government:

76,500
283,650

Coastal Louisiana

3,267,737,595

106.04

99,800

listed

/North Louisiana

108.47

59,380,000

companies-—14,703,813,967

;

1,182,036,106

___

72.85

135,200

1,392,250

3,268,285,800

(operating).

105,239,361

218,000

1,905,300

Whitesides, A. B. A. State VicePresident, and Frank R. McGeoy
Jr., regional Vice-President. In

140,928,823
*..
31,298,530

140,350

-30,650

direction

105.88

78.42

113,500

1,885,600

the

104.51

73.64

Miscellaneous

Total 'U.

under

37,869,188

abroad—
businesses

358,800

—

are

173,608,349

oper.

150

515,000

102.20

106,393,105
139,177,560

companies

Mississippi the activities
Organization Committee

the

104.39

utilities-—

1,500

290,550

Texas——

81.93

483,520,587

103,20

Miscellaneous

116,700

Texas.

Total

and

—12,850

376,000

—-

Southwest
Coastal

326.200

70,864,131
21.113,593

105.88

Gas and electric (holding)
Communications

—

141,450

"In

89.43

37,825,438

■

349,150

Texas———

Central Texas—

East

Gas

1943

5,250

—

78.59

North

173,613,178

Textiles

Mar. 6,

1944

3,100
6,900

—

96,750

Texas

Texas—

West

—

tl,300

1,000

■xj-! Nebraska
■

Ended
Mar. 4,

Week

63.45
•

Utilities:

Ended

from

1944

Association said:

102.33

483,997,310

Tobacco

Week

4 Weeks

Change

103.88

33,570,668

102.58
83.15

Mexico,

103.36

80.72.

21,425,509^

tana,

85,367,384

■

91.93

12,694,050
70,439,088

New

86.72

101.98

587,843,030
7,729,873,814
12,348,824

67.53

586,690*139

District

the

Mississippi, Mon¬
Carolina, Virginia,
and South Dakota.
Announcing
this under date of March 8th the

103.68 3

7,918,110,121

—

merchandising

106.03

36,133,571

L 1

103.68

addition

11,411,051

-s

89.01

90,368,421
33,674,271

—_

Columbia, the 13'states'are:-Nev¬

102.46

102.13

—

Railroad—-

105.83

-11,712,303
36,186,967

-----

Petroleum

(FIGURES IN BARRELS)

102.50

Dominiek,

; ; 47.251,250

Machinery and metals———
Mining (excluding iron)-!
Paper and publishing

Retail

DAILY AVERAGE CRUDE OIL PRODUCTION

103.32

7,790,000

Association's

15,750,000

_—

Land and realty

the East Coast.

73,949,486,971

7,790,000; 13,322,375

equipment -------;«:■....

Financial

*4.

102.50

—

Electrical

33,145,000
oil.
whole, and do not reflect

103.27

80,045,819,626;

are

chairman of
Organization
Committee, who is Vice-President
of the Trades Gate City National
Bank, Kansas -City, Missouri.
:

and* office equipment-

Chemical

51,175,000 barrels of residual fuel

figures apply to the country as a

Cities,

Building

86,091,000 barrels of gasoline; 7,013,000 barrels of kerosine;

bert

companies:

Automobile:

conditions

Government

banks

the

Price
S

indicate that the in¬
dustry as a whole ran to stills on a Bureau of Mines basis approxi¬
mately 4,344,000 barrels of crude oil daily and produced 13,267,000
barrels of gasoline; 1,351,000 barrels of kerosine; 4,513,000 barrels of
distillate furl oil, and 8,590,000 barrels of residual fuel oil during the
week ended March 4, 1944; and had in storage at the end of that week

The above

Average

Market Value

eligible

members, it is announced by Ro¬

-Jan. 31, 1944-

Price

all

Average

Reports received from refining companies

barrels of distillate fuel, and

29,-1944——

Market Value

Group—

4,1944 averaged 4,404,reported by the Institute follow:

Further details as

900 barrels.

-Feb;

Daily output for the four weeks ended March

tion, there are now 13 states and
the District of Columbia in which:

the aggregate; mbrket. value and

mental and industrial groups with
average

■

classified by govern¬

table listed bonds are

day more than the daily average figure

per

31.

with^a total market value of $90,544,387,232 on Jan.

Mississippi,

With the addition of

Montana, North Carolina, South
Dakota, and Virginia to the list of
states having 100%
membership
in the American Bankers Associa¬

with 1,091 bond,issues, aggregating $90,741,549,801 par value

pares

March 4, 1944 was
4,412,725 barrels, a decrease of 10,550 barrels under the preceding
week.
It was, however, 525,525 barrels per day in excess of that
recorded for the corresponding week of last year and 44,425 barrels

age gross

mm%
'CM

This com¬

Exchange with a total market value of $96,837,573,171.

the daily aver¬

The American Petroleum Institute estimates that

close,of)business Feb+29,issues

aggregating $96,631,760^238 par value listed on the New York Stock

$ Produced

from

887,807,000

pounds

etc.

trial supervisory

technique

crude oil.

produced includes 230,034 bales first cut, 663^20^ bales second cut
and 70,317 bales mill run.
Total held includes 82,133 bales first cut, 183,041 bales
second cut and 31,142 bales mill run,>:y.",
§Total

and hour administration and sta¬

linters

ship.
those

The
now

dustries

Exports and Imports of Cottonseed Products

defense, the Department of Commerce
until further" notice the publication of statistics

In the interest of national

has

discontinued

concerning imports and exports.

-V'/

training, and the

conference

courses

are

engaged in- the

who

can

leader¬
open

war

in¬

demonstrate

that they have good prospects of

being
future.

employed

the

near

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4264

159

Total Loads

.Revenue freigbtCar Leadings During Week

RaUroads
Southern

i4;g Ended larch 4,1944 toeaseiti57B2 Gars
Loading of

freight for the week ended March 4, 1944,
totaled 788,255 cars, the Association of American Railroads announced
on March 9.
This was an increase above the corresponding week of
1943 of 39,329 cars, or 5.3%', and an increase above the same week in
; 1942 of 17,770 cars or 2.3%.
■<:
revenue

Loading of revenue freight for the week of March 4 increased
.5,792 cars, or 0.7% above the preceding week,
.

Miscellaneous freight loading totaled 375,977 cars, an increase of

9,265

above the preceding week, and an increase of 26,431 cars
above the corresponding week in 1943.
cars

Loading
'104,911 cars,

merchandise

carload

than

less

loading amounted to 172,485

Grain and grain

■

197

decrease of 6,075 cars
of; 2,132 cars below the

week in

alone, grain and grain products loading for the week of March 4
decrease of

Live

the

preceding week

below the corresponding week in 1943.

cars

loading amounted to 15,059

corresponding week

1943.

decrease of 589

cars, a

the Western Districts alone

loading of live stock for the week of March 4, totaled 10,848 cars,
decrease of 609

1,204
f

cars

increase of

above the corresponding week in 1943.

Forest products loading totaled 43,184

Central of Georgia

Charleston & Western Carolina
Clinchfield
*

increase of 624

3,685

above

cars

cars,

increase of 153

reported increases compared with the corresponding

Georgia__
Georgia & Florida

except the Pocahontas.

All districts reported increases

1944

weeks

Week

February-

March

1,7'72

1,911

3,192

3.182

tons of ingots and

241

280

216

117

170

746

ings, according to

538

Iron

: : 2,291

1,064

500

2,069

■

,1599

121,

1,217

137

■,

2,809

2,917

340

331

916

542

3,342

3,880

4,114

5,789

28,107

24,352

27,997

18,570

23,890

23,880

23,903

13,300

11,376

168

Illinois Central System
Louisville & Nashville

Macon, Dublin & Savannah

Mississippi Central

157

186

999

908

—

•

278

221

165

620

448

2,938

3,366

5,109

5,363

1,098

1,116

1,673

1.770

445

Richmond, Fred. & Potomac

391

•:

375

495

397

11,316

10,403

22,656

Seaboard Air .Line—

•

1,377

1,269

444

11,746

11,610

9,858

9,570

9,619

25,430

25.023

20,970

23,097

539

536

979

802

120

124

1,031

1,021

124,148

116,488

120,223

128,449

122,468

15,712

14,700

17,793

14,708

13,3G8

■

611

Winston-Salem Southbound

157

•

Total—.

District—

lb lcago & North Western—
Chicago Great Western...

2,570

2,389

2,835

3,708

3,290

19,978

19,353

21,579

10,862

4,120

4,392

5,408

1,262

1,265

1,2.99

245

250

834

595

791

510

55?

10,081

12,343

3,837

Ouluth, Missabe & Iron Range
Dulutli, South Shore & Atlantic
ilgin, Joliet & Eastern
fft. Dodge, Des Moines & South

4:.'

8,788

•

9,050

9,821

407

421

539

122

109

12,618
Green Bay & Western—457

10,762

12,140

5,427

5,864

469

584

955

V* 75)

Great Northern—

V.f-

300

245

315

2,121

2,130

2,324

2,401

50
2,13f

5,350

4,559

5,815

4.061

10,235

8,898

—

10,400
81

5,608

2,429

2,135

2,749

2,827

86,982

——

Central

Western

4,638

80,807

93,380

68,793

3,033

18,983

;
*'

7,336,462

7,751,906

carloadings for

4? 1944.

12.23C;

2,807

1,030

94C

11,667

12,420

13,958

2,882

5,693

4,948

766

747

892

2,188

1,831

3,612

3,161

6,256

5.75C

751

834

642

647

838

889

1,942

1,251

2,126

'1,787

2,063

1,667

1,582

964

908

1,230

1,764

2,047

2,002

113

708

766

971

739

65(

28,163

26,094

27,926

13,773

134

345

267

2,034

1,695

15,504

17,096

14,13?

571

552

1,511

1,880

113,969

3,935

3,454

98,087

1,748 :

116,454

92,298

(NUMBER OF CARS)

CONNECTIONS

Railroads

Total Revenue

Eastern District—
Ann Arbor

Connections

1943

1942

1944

279

256

639

Bangor & Aroostook
—*
2,477
Boston & Maine—6,641

2,30.9

2,314

1,662
264

8,006

17,111:

1,594

2,432

—,

—.

Chicago, Indianapolis & Louisville
Central Indiana—*——
,

987

1,339
285

15,627

;

1,990

1,397

1,092

6,074

2,494

2,152

6,076

6,745

14,667

12,144

7,666

7,353

8,804

10,808

11,171

229

..—.

Delaware, Lackawanna & Western
Detroit & Mackinac

1,295

Central Vermont-*..——
•Delaware & Hudson

6,176

1,482

—

241

283

129

——

119

Detroit, Toledo & Ironton

1,763

...

Detroit & Toledo Shore Line
Erie

Maine Central.

Monongahela—

■

N. Y.. N. H, & Hartford

10,818
1,147

fyt—

York, Ontario & Western

& St. Louis—L—„ '
Westerh^y.i.~-..
Pittsburgh & Lake Erie——.
.

6,396
503
.7,635. *
4,726
762
336
; 970

New York; Chicago

N. Y., Susqiiehanna &
Pere Marquette

—

Pittsburgh Shawmut———

—.

Pittsburg. Shawmut & North-———
Pittsburgh & West Virginia—;
:

3,846
19,097

4,509

9,965

202
1,983
8,684

1,479

3,167

4,151

6,289
.2,421

5,975

362

2,060

57,784

1,159

City Southern

2,756

2,713

3,860
2,605

291

1,216

1,196

478

539

j5C

3,028

263

301

542

683

187

.145

186

465

476

5,729

5,621

4,955

4,964

6,431

15,433

16,138

15,919

19,874

17,552

Missouri-Kansas-Texas Lines

11,964

21,819

862

1,176

6,724
; 432
7,522
4,416
827
341
811

6,970

3,547

7,827
5,173
534
416
659

5,467

4,732

151,336

! 162,712

2,919

8,028

7,885

8,771

7,922

225

257

352

9,031

7,836

2,845

2,766

3,085

6.926

5,486

12,601

8,994

5,596

5,175

3,874

7.927

6.67C

creased

5,377

Wichita Falls & Southern

101

Weatherford M. W. & N. W

"This

—

2,659

4,070

1,182

-pi-V 976

12,839

12,560

4,566

6,216

251.376

23,904

The

week's figures.

revised.

725

1,264
27,772

paperboard industry.

2,876

3,359

1,384

*314

The members of this Association represent

258

248

1,757.

7,085

Cornwall..

Cumberland & Pennsylvania

7,840

598

603

201

—

6,540

637

Central R. R. of New Jersey

1,938

282

*108

Llgonier Valley.
Long Island..
——
Penn-Reading Seashore Lines-

1,215

1,854

>293

130

"2 *

advanced to equal 100%, so that they represent

are

20,649

21,097

!<■

71
8

92
.

•;y.:V

109

806

4,006

3,817

1,568

1,840

2,751
66,958

62,264

15,685

31,002

30.884

19,374

20,621

19,643

3,260

4,457

3,993

4,004

3,831

14,520

14,405

Received

Period

175,276

172,212

173,689

170.30?

Jan.

27,189

29,132

21,161

11,211

21,231

22,888

11,768

19,254

7,895

7,006

4,279

Virginian—

29.,

4,726

52,699

56,746

3,545

•'

2,248

12" 7~
19~~
26" "

21,354

20,912

Feb,

March

2,138

43,960

not

—

•
-

—

160,567

153,097
145,735

i-i,

185,069

154,797
130,252

151,980

4_—V

were

tion.

air

available

made

books

26, appeared in
9, page 1024.

our

issue

•

95
96
96
87

•

93
9393
93

63
86
93
93

93
86
90
91
92
93
94
94
94
94

"178.375

597,011
628,048
630,449
609,429
621,875
650,606

;
•

95
97
*97
96
93
95

week, plus orders received, less production, do
orders at toe close.
Compensation for delinquent

Notes—Unfilled orders of the prior

necessarily

equal the unfilled

reports,-orders made for or filled from
ments of unfilled orders.

stock, and other, items made necessary adjust¬
J
/,
*

:■

•.

Barometer

production

were

for the

8.6%
week

12.9%,greater than produc¬
Unfilled

order

files

the

reporting mills amounted to 115%

Current Cumulative

602,789
600,323
589,659
569,689

589,815
612,043
614,215
602,930

'
92,328
138,381
146,596
140,457
147,423
151,102
151,870
148,533
139,044
146,926

131,940

——

—

Jan.

Feb.
—.

—-——

air

March

above

•,

121,212
-

Feb.

163,832

District—

119,487
' -/.v:.-•

8~
157

Feb.

139,654

Jan.

Western Maryland

in¬

March 26, 1944.
mail stamps will

ended March 4, 1944. In the same
week new orders of these mills

Percent of Activity

Tons

146,662

—

1944
Jan.

stamp

the

domestic

this

Trade

the total

Remaining

Tons
149,803
148,826
148,431
136,120

177,664

Dec' li"
Dec' 18
Dec" 25 „1I—

Jan.

mail

meet

for

reporting to the National Lumber

Orders

Tons

1943-Week Ended

2,409

70,830
14,124

77,038

15,749

Pennsylvania System
Reading Co..
Union (Pittsburgh)—.

928

1,643

Production

Orders

Dec

air

issued

ber

PRODUCTION, MILL ACTIVITY
Unfilled

78,232

STATISTICAL REPORTS—ORDERS,

the

cost

According to the National Lum¬
Manufacturers
Association,
lumber
shipments of 500 mills

83% of the total in¬

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

1,401

■

and

from the National
Lumber Movement—Week
relation to activity in the
"Ended March 4, 1944

dustry, and its program includes a

29,034

"8", and

give herewith latest figures received by us

Paperboard Association, Chicago, 111., in

1,383

38,216

2.061

Gauley_j

681

38,576

cover

rate

8-cent
be

March
of

industry.
699

time, and for the present
there
will be no printing of 8cent air mail stamped envelopes."
An
item
bearing on the in¬
creased
postal
rates
effective

Weekly Statistics Of Paperboard Industry

figures

8-cent

being

not

♦Previous

numeral

mail effective

Total-...

274

42,208

—

Cambria & Indiana—

Total—

8,754

4,359

16,540

2,927

5,763

Bessemer & Lake Erie

Norfolk & Western

7,947

12,369

Texas & New Orleans

2,653

17,271

•

.551

Allegheny District—

Chesapeake & Ohio

123

3t. Louis Southwestern

19,243

160,546

Baltimore & Ohio—

Pocahontas

•

March

Postmaster, Washington 13,
C., with cash or money order

8,286

Quanah Acme & Pacific
St. Louis-San Francisco———.

Note—Previous year's figures

stamps to be affixed. Stamps of
selected
quality for collections
may be obtained on mail orders
addressed to the Philatelic Agency,
Post
Office
Department,
Washington 25, D. C. This Agen¬
cy
does not service covers.

2,316

2,802

Midland Valley——
Missouri & Arkansas—i

57,197

9,463

4,955

Akron, Canton & Youngstown—

Buffalo Creek &

308

Texas & Pacific

time

"Stamp collectors desiring first- :;
day cancelations of the new stamp
March 21 may send not more
than
10
addressed envelopes to

remittance

44,109

5,083

—

Total

3,453

507

Wheeling & Lake Erie

3,524
98",

3,701

—.

Missouri Pacific—*

first

mail

be printed by rotary process
issued in sheets of fifty.

4,173
460

323

3,718

307

11,951

46,356

2,319

4,343

1,553

16,157

2,495

1,810

247

9,256
3,395

400
5,987

Rutland
Wabash

2,624
48,230

1,918

3,972
18,796

169
1,916
6,907

5,906

—

New York Central Lines

New

13,518

189
1,944
9,154

.
—.

1,776

365

12,309
3,562

2,476

Lehigh & Hudson River—
Lehigh & New England—..
Lehigh Valley—
—

Montour

2,063

299

3,966

—

Grand Trunk Western—————

1,617

307

13,356

—

2,401

Litchfield & Madison

1943

air

placed

th$ color to olive green. It will

214

2,887

485

Louisiana & Arkansas

Received from

1944

329

5,273.

5,873

Kansas

Freight Loaded

651

4,892

1,668

International-Great Northern

Kansas, Oklahoma & Gulf
Total Loads

21, 1944, at the Washington, D. C.,
post office. The advices state—
"The new 8-cent air mail stamp';
will be identical in size, arrange¬
ment, and design with the cur¬

the
311

7,804

Gulf Coast Lines—

WEEK ENDED MARCH'4

the

Department

District—

Southwestern

FROM

8-cent

new

nomination

12,858

13,529

118,644

Burlington-Rock Island
RECEIVED

for

Feb.

6-cent air mail stamp, issue
1941, the only alterations be¬
ing that of the change in the de¬

639

——

Total.

Office

Post

stamp,

postage

Goldman

471

rent

t>31

486.

15,469

System

i.—

the

Albert

*:»

—

;

Western Pacific^.—

a year ago.
AND

capacity."

Map Stamp

announced

issue

sale

2,375

3,385

Southern Pacific (Pacific)

Qnion Pacific

12,267

3,094

—

Peoria & Pekin Union.

770,485

3,709

During the period 83 roads showed increases when compared with

7;--"

New 8-Cent Air

will

12,531

12,416

——

748,926

•.

2,641

North Western Pacific

The following table is a summary of the freight

LOADED

95.7% of ca¬
In February, 1943, opera¬

tions averaged $8.5% of

Postmaster

2,952

Fort Worth & Denver City
Hlinois Terminal——.

3,122,942

the separate railroads and systems for the week ended March

FREIGHT

202 tons represented

Placed On Sale March 21

11,026

Denver & Rio Grande Western

3,858,479

588

16,288

472

19,676

3,426

2,798

517

————

Chicago, Rock Island & Pacific

3,055,725

of 96.9% of capacity.
In
January total production of 7,595,-

average

498

12,199
4,132

20,929

19,837

Toledo, Peoria & Western

REVENUE

"During the month just closed
the steel industry operated at

that
21,417

Chicago, Burlington & Quincy
Chicago & Hlinois Midland

Utah..:

corresponding week

was
produced per week, as
against 1,714,493 tons per week in
January.
The peak weekly pro¬
duction
came
in
October, 1943
when
1,765,025 tons were pro¬
duced.
In February a year ago
weekly production averaged 1,~
705,934 tons.

63,50(

•

569

District—

Atch., Top. & Santa Fe System

3,531,811

7,744,224

Total—.

•the

tons

3,14<

...

Spokane International

Spokane, Portland & Seattle

Nevada^Northern—

1942

The

3,091

Missouri-Illinois

1943

American

was

"Allowing for the fact that Feb¬
was a shorter month than
January, production last month
represented a higher rate of ac¬
tivity than in January.
During
February an average of 1,736,348

pacity.

Minneapolis & St. Louis

3,159,492
788,255

——

the

6,823,738 tons
produced in February, 1943. The

10,530

.3,757

;

Lake Superior & Ishpeming

previous record

Institute.

ruary

957

steel for cast¬

Steel

and

Institute's statement further said:

15.191

3,250

—_

Norfolk Southern

3.796,477

January

of •

368

;

record, amounting to 7,188,482

011

3,779

;

Gulf, Mobile & Ohio

Production of steel in February
the highest for any February

was

1,176

3,577

1,201

—

Denver & Salt Lake_.

compared with 1942 except the Eastern and Northwestern.
Weeks

5,025

312

Chicago & Eastern Illinois
Colorado & Southern^

responding week in 1943.

5,139

469

3,716

Gainesville Midland—

Bingham & Garfield

low the preceding week, and a decrease of 338 cars below the cor-

4,271

—.

Alton——

Coke loading amounted to 14,883 cars, a decrease of 423 cars be-

11,504

1,658
::

118

Florida East Coast—

cars

responding week in 1943.

week in 1943

313

11,987

Higher In February ;

1,479

13,012

403

2,826

1,871

New York

loading amounted to 13,475

All districts

417

1,758

i—

Durham & Southern

total—:

-above the preceding week and an increase of 451 cars above the corr

•

4,045

—.

—

Columbus & Greenville

'the corresponding week in 1943.

•

3,921

Northern Pacific

cars,

above the preceding week and an increase of

Ore

14,364

413

2,616
.

Minn., St. Paul & S. S. M

below the preceding week, but an

cars

679

14,237

Chicago, Milw., St. P. & Pac
ihicngo. St. Paul. Minn. & Omaha

below the preceding week, but an increase of 2,209 cars above

cars
■

stock

2,978

896

606

■

Outpol

1943

1944

the Western Districts

totaled 32,211 cars, a decrease of 838 cars below, the
a

273

841

724

;«

Atlantic Coast Line—

Northwestern

and

236

886

Atlanta, Birmingham & Coast

decrease of 2,159 cars

1943.

317

Tennessee Central

preceding week but

the- corresponding

1942

Atl. & W. P.—W. R. R. of Ala..;

Southern System

Connections

1943

Alabama, Tennessee & Northern.

Rale Of Steel

Received from

1944

Nashville, Chattanooga & St. L

;

products loading totaled 48,281 cars, an increase

above the

cars

below

week in 1943.

cars, a

below the preceding .week, and a decrease

corresponding week in 1943.

•

freight totaled

lot

increase of 2,640 cars above the preceding week, and

District—

Piedmont Northern

Coal
■

of
an

increase of 11,182 cars above the corresponding

Total Revenue

Freight Loaded

of stocks.

mills,

For

reporting softwood

unfilled

orders

are
equi¬
production at
the current rate, and gross stocks
are equivalent to 33 days' produc¬

valent

days'

tion.
For the year to date,

shipments
reporting identical mills ex¬
production
,by
6.8%;
orders by 13.1%.
of

ceeded

Compared to the average/ cor- f y
responding week of 1935-39, pro- 7
duction of reporting mills was
47.4%
greater; shipments were
35.2% greater; and orders were
51.5%
greater.

THE

COMMERCIAL & FINANCIAL

16, 1944

Thursday, March

CHRONICLE

1136

earnings

current

relation

most banks.

Items About
Federal

The

York

New

Reserve

announces

Great Neck Trust

(P.

Plaza

Neck

Bank of
that the

that he

thought a

current

earnings

Y.), New York, has become a
of the Federal Reserve

March 6; also
Bank, of Free-

port, N. Y., became a member
the System effective March 8.
At

meeting of the
of .Directors of the Flush¬
recent

Board

National Bank, of Flushing,
N. Y., Peter A. Far-

ing

Long Island,
was

rar

named

Vice-President.

formerly As¬
sistant Vice-President, has been
elected a Vice-President of the
County Trust Company of White
Plains, N. Y., according to a state¬
ment issued by Andrew Wilson,
Jr., President.
Mr. Barrett is a
Joseph R. Barrett,

graduate of Princeton University
and before coming to the bank in
1939 was identified with the firm
of Weil Pearson & Co.
At the
directors
meeting on March 7,

The St.

Feb.

elected a trustee of the
Yonkers Savings Bank, Yonkers,

been in the
in New York
City for several years and is now
President of the Municipal Forum
Mr. Rust has

stock of the
California National Bank

Francisco to $10,000,000
through the declaration of a divi¬
dend
of
$1,800,000, payable in
common stock to common share¬
holders a special meeting of the
stockholders will be held on Mar.
16 to consider the proposal and
also to provide for changes in the
bank's articles of association to
San

has

of plans to in¬

the common

Anglo

been

degrees

varying

called

will

furtherance

heretofore.

Rust, Vice-President

upon

also quote:

ber of

capital

reflect

properly

pared with 1.8% in

the num¬
board members to 14. Mr.
was
born in Jersey City;

adjust¬

preferred stock retire¬
requirements. According to

ments and
ment

proval of the plan.

graduated from Princeton
and took post graduate
courses at Massachusetts Institute
of Technology and Columbia Uni¬
versity. He joined General Elec¬
1911.

the

stone

stockholders of the Fire¬
Trust and Savings

Park

Bank of Akron,

the

to the

annual meeting

effect that at the

Ohio, on Jan. 19

corporate name was

to the Firestone

banks

reached

the point in

yet

not

had

groups

large
Other

1943 where

they were subj ect to material in¬
creases in income taxes.
It is ex¬

however,

pected,

income

that

factor of in¬
creasing importance
to many
banks during 1944."

taxes will become a

1942 figures were

The

columns April

to in these

1292.

page

referred
8, 1943,

Facilitation Of Wartime Contract

Immediate consideration

1942, and 1.9%

proportion

1943,

Association in

capital

however,

changed

Bank.

increased from less than
1943, re¬

1942 to 34% in

small degree the
in capital funds

moderate increase

earnings, but more

out of

&■"

Somervell,

manding

general

the

in answer

Forces,

com¬

Army
to the

war-time

Government security

question, "What is the Nation
Fighting for?" gave the following
answers which we take from As¬
sociated Press advices from Fort
Belvoir, Va., on March 9, as ap¬

pearing in the New York

largely

shrinkage in loans
(except at the large New York
City banks) and the expansion in

the

General

1718, which pro¬

afising from
of avoiding

the American Bankers

unemployment and inflation by

post-war

preceding years. The

flecting in some

Lt.

of U. S. Senate Bill S.

machinery for the prompt settlement of claims
terminated war contracts, has been urged as a means

funds, while some of the mediumsized
banks outside New York

29%

Service

Advices have come to us

stantially less than for the
New
York
City banks.

vides

San '

the

1907

tric Co. in

but the

the past year,

percentage of earnings required
for tax payments remained sub¬

E.
Association. Q
f

letter addressed on March 2 to Senator James
Murray of Montana by A. L. M. Wiggins, President of the
large
New
York City
banks, The bill was introduced by Sena-^
which for some years have been
country selling at that price as
tor Murray and Senator Walter
at any other.
paying out larger proportions of
There was an up¬
F. George of Georgia.
In his let¬
their net earnings in dividends,
ward trend in prices during the
ter Mr. Wiggins points out that
reduced their dividends slightly in
year among the lowerpriced daily

in the three

he was

taxes during

assume

credit risks in the post¬
war period. For all member banks
covered by the study, cash divi¬
dends declared in 1943 averaged
2.0% of their total capital, com¬

His election increases

Lunn

16% in 1942

than

increased their dividend distribu¬
Francisco
"Chronicle" tions moderately.
from which we quote: President
"Total capital funds were in¬
W. H. Thomson states directors of
creased by more than 5% through
of New York.
the RFC agreed to the plans if the
the
retention
of undistributed
bank would retire .another $900,profits. Nevertheless, the average
Arthur W. Lunn, manager of
000 retirable value of preferred
ratio of capital funds to total de¬
the
Newark
office of General stock. Accordingly, on Feb. 1,
posits declined further to less
Electric Co., has been elected to
that amount of preferred was re¬
than 11% in 1943, compared With
the board of managers of Frank¬
tired, reducing outstanding pre¬ nearly 14% in 1942, over 15% in
lin Savings Institution of New¬
ferred to a retirable value of $16,1941, and 16% in 1940. The ratio
ark, N. J. This is learned from
500,000. The Comptroller-'of the of capital to assets other than cash
the Newark "News" from which
Currency also indicated his ap¬
assets and Government securities,

investment business

compared with less
(about 10% of
total earnings in 1943 and 6% in
1942).
The large banks in other
cities
of the
District also had
marked increases in their income
1943,

participated in<^

banks

groups

18.

crease

to stockholders
16 and fixed
37Vi centSi' as the regular quar¬
terly rate 1 in lieu of 25 cents as

Equitable Securities Corp.,

announced the
follows at its re¬

«.

larger

ending March 31*
record i March

John J.

Louis Union

Bank,

reports that "there was a considerable increase in
member banks in this District during 1943 following
1942.
As in the previous year," says the Bank under

ABA Urges

the

York Federal Reserve

29% of total assets in 1942, to less
the increase
promotions as
than 191/2% in 1943.
in profits during 1943.
For all
cent annual meeting:
. ,-r
"In general, expenses absorbed
banks the average rate on net
M". L. Hanley, Assistant Vicenearly the same percentage of to¬
President; John E. Gaskill, Jr., profit atfer income taxes was 7.2% tal current earnings in 1943 as in
of total capital funds, compared
Trust Officer; C. W. Gusoskey,
the previous year.
Salaries took
Assistant
Real
Estate Officer; with 4.4% in 1942, 5.5% in 1941, a slightly larger percentage of
and
a
maximum for any year
Samuel C. Davis, Jr., and Shelby
current earnings than ip 1942 in
since the late 1920's of 8.9% in
F. James,
Assistant Trust Offi¬
the smaller banks, and a some¬
1936.
cers, and K. H. Eggers, Assistant
what smaller percentage in the
"Dividends paid to stockholders
Secretary.
larger banks/but for the District
were not materially increased as
the banks generally followed the as a whole there was no change.
The Board of Governors of the
Federal
Reserve
System
an¬ policy of adding a large part of Interest on deposits and other ex¬
their net profits to capital ac¬
nounce that the Central Savings
penses were slightly reduced in
Bank
& Trust Co.,
of Denver, counts (72% on the average), in
Colo., a State member bank, has view of the continued growth in
changed its title to the Central their total assets and liabilities
Bank
&
Trust
Co., effective and their expectation that they

dividend of 37V2
share for the quarter

cents, per

Capital Fund Increased In 1943
President of the New

Allan Sproul,

22%

took about

taxes

earnings after expenses
the large New York City banks

of the net

profits realized by
a decrease in
date of March
.
6, "profits were largely used to strengthen the capital structure of
Trust Co., the banks." According to the Bank, Mr. Sproul further reports "all

Louis, Mo.,

St.

April 1 of a

dividends.

tributed in

authorized the payment

the Board

$232,000
Employees
Plan, and
larger share of
should be dis¬

past service in the
Retirement
Annuity

for

member

"Income

contribution of

tion to a

Company, Great
O., Great Neck,

System effective
that the Freeport

Companies

Banks, Tiust

"Journal

American."

"The

holdings.

principal cause of the

in¬

of banks in
this District in 1943 was an excess
of profits and recoveries on secur¬

crease

ities

sold

net profits

during

the

year

over

It was
not due so largely, as might have
been supposed,
to increased in¬

charge-offs on other

fight for simple things, for
the little things that are all-im¬

assets.

from

arising

claims

settlement

immediate

"the

war

terminated

absolutely neces¬

contracts is

avoid a major
unemployment problem,
and a post-war consumer market
so short of goods that serious in¬

papers.

ther

if we are to

sary

post-war

flation will be

invited.

The un¬

this

when

consider that it
when ser¬

being returned to
civilian life," he states. Mr. Wig¬
men

are

gins further says:
such

get a program

that prescribed

implemented and

in S. 1718

operating.

It is

last

.year.

papers

"The

survey

nation still has
papers
in

"It takes time to

899

fell from 556 to 398.

would occur at a time
vice

their retail price

cents, compared
The number
increased from
to 279 during the year, while*
number selling for 3 cents
year

4-cent

974 daily newspa¬

reported
,

with

employment phase is the major 175
issue and of tremendous impor¬ the
tance

total

pers

fur¬

The "Times" reports
to the survey:

disclosed that thev*<
three daily news- j)

which sell for 1 cent. One

Pennsylvania, one in Ohio and
in Wisconsin. Last year there

one

were

1942

four

penny

papers

and in

there were nine.;

importance that
"Cranston
Williams,
General
functioning at an Manager of the ANPA,' who an¬
early date, if our economy is to nounced the survey findings, said
avoid critical dislocation.
Indus¬ the study included commercial
try is desirous of arranging fi¬ dailies, but not Sunday editions of
nancing for post-war reconversion daily newspapers, nor foreign lan-/
requirements now.
That it have guage newspapers. Several daily
adequate machinery to accomplish papers did not report their singlethis purpose is essential."
copy price and were therefore not
Referring to Senate Bill S. 1730, included in the tabulation, Mr.
which also embraces the subject Williams said.
The report was
of contract termination settlement made public at ANPA headquar¬
and goes beyond that to provide ters, 379 Lexington* Avenue.
1
for the disposal of surplus war
"This year's price figures in|
property, Mr. Wiggins states that eluded 1,725 daily newspapers. ^
"while we appreciate that the dis¬ Last
year's report covered 1,727
posal of Government property and papers and the 1942 figures were

utmost

the

such

plan be

come
resulting from the banks'
substantially increased holdings of
March 10,
such related matters are of ex¬ for
1,777 papers.
- v
\
portant. We fight for the right to Government
securities; for the
the
Board of Directors of the
treme importance, we are of the
lock our house doors and be sure
"The
number of publications
average bank net current earnings
Boatmen's National Bank of St.
opinion that some statutory pro¬
that no bully with official sanc¬
before income taxes were only
which reported and their retail
Louis declared dividends of 40
vision for the settlement of claims
tion will break the lock.
moderately larger than in 1942,
daily prices, for the three years,
cents a
share, payable April 1
arising from terminated war con¬
"We fight for town meetings,
and probably somewhat smaller
follow:
and July 1, 1944, to holders of rec¬
tracts is the immediate need.
for
the
7c
10c 25c yf
soapbox in the public than in
5c
4o
1941.*
Investments in
2c
3c
lc
ord as of March 21 and June 20,
3
5
1
"In the interest of our whole 1944. 3
974
279
62
398
square, for the high school debat¬
Government securities, it is true
respectively, and an extra divi¬
3
5
1
899
175
84
556
1943. 4
increased substantially, and
for economy, we urge the immediate 1942. 9 185 735 32 806 4 5
1
dend of 10 cents a share payable ing team, for open doors to cathe¬
consideration of S. 1718 and that
dral and church and synagogue.
the year averaged 47% of total
April 1 to holders of record as of
"The lowest price range was re¬
other related matters covered in
assets compared with about 31%
"We fight for the country editor
March 21, to bring the payntent
The average yield 011 S. 1730 be taken up at an early ported from Pennsylvania, where
during the first quarter up to 40 and for the metropolitan daily in 1942.
129 daily newspapers filed their
subsequent date."
cents.
A dividend of 30 cents a and for the editor's right to say bank investments declined, how¬
retail prices. Only seven dailies in
ever, owing to a shortening of the
the wrong thing if he thinks it's
share was paid on Jan. 1.
that State
sell for 5 cents, as
average maturity of Government
In making the announcement, righi.
against 54 at 4 cents, 57 at 3 cents,
security holdings, and to a reduc¬
"We fight for the right to or¬
Tom K. Smith, President of the
tion in holdings of higher yielding
ten at 2 cents, and the lone penny
bank, said that if earnings pres¬ ganize for any decent purpose;
securities. Meanwhile loans, which
sheet.
ently indicated continued through for labor; for employers; for..the
for most banks yield^ a consider¬
the year, a dividend of 40 cents Grange and the Legion and the
"In California, where 120 daily |j
5 Cents Most Common
ably higher rate of income than
would
be
paid for the fourth ladies' literary club and for lodge
papers reported, 105 sell for 5
investments, declined from nearly
quarter, making a total for the meetings in full regalia on Tues¬
Figure For Dailies
cents, three for 10 cents, one for
year
of $1.60 on the $20 par day nights.
There has been a sharp decline
*In the compilations published
4 cents, ten for 3 cents, and one
shares. The regular dividend re^
"We fight for our candidate for
since last year in the number of
cently has been at the rate of sheriff and for the other fello,\v's prior to 1943, taxes on net income
for 2 cents.
daily newspapers which sell for 3
$1.20 per year.
candidate, for the right to be sorry were included in total expenses,
"The third largest number of
cents a copy and an increase in

its

meeting

"We

He stated that

it had been con¬

templated when the capital stock
was
increased to $2,500,000 in

elected him and to say so.

fight for free radio, for the
right to listen to what we want
dividends would be and to turn off what we don't
held at a low level until the sur¬ want. '■/
'
' /'
plus fund equaled the capital, and
"We fight for the high privilege
undivided profits and reserve for
of throwing pop bottles at the
contingencies amounted to $1,umpire.
000,000, and that that point had
"For
these things
we
fight,"
been reached approximately.
He
said Gen. Somervell today on the
added that during the past ten
anniversary of the Army Service
years, over $2,500,000 had been
Forces.
added to capital funds, in addi1941,

"We

that

net current
earnings.
For 1943 net current
earnings were computed before
deduction of taxes on net income
which are shown as a separate
item
(with revised figures for
1942 for all banks combined), and
a new item
(No. 2) "Profits be¬
fore income taxes" to total capital
accounts has been added.
"

thereby

reducing

4-cent papers, daily newspapers reported from
the
American Newspaper Pub¬ New
York, as follows: Twentylishers Association
reported on
three sell at 5 cents, one at 7
March 3 on the basis of a na¬
tionwide
survey,
according to cents, two at 10 cents, one at 25
the New J^ork "Times" of March cents, 38 at 4 cents, 29 at 3 cents,
4, which indicated that the survey and seven at 2 cents. Of the 99

the

number

showed .that 5 cents was
most common

editions, with more
many

still the
daily

retail price for

than twice as

publications throughout the

daily papers reporting from Texas,
97 sell at 5

cents

other two sell at 3

copy

and the

cents."

^[S

Full text of Commercial and Financial Chronicle : March 16, 1944, Vol. 159, No. 4264, Section 2

FRASER