The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
THURSDAY
Final Edition
i.Ee«.
Volume 155
D. S. Pat.
New York, N. Y.,
Number 4056
investment
in
Of
question of taxing the income from' State and municipal
reprint below a letter dealing with a particular phase of
the subject prepared by J. Austin White, President of J. A. White
Union Central Building, Cincinnati:
*
f
bonds,
!
In
this
Federal
allow the 3s
proposal to
Government
to
the
tax
income from state and municipal
and
ernment
! bonds, there is
\ meets the eye.
;
more
than at first
;,
One who has given even a
few
fields
the
to
certain
reserves
States, is an unac¬
ceptable form of government and
with. What is
the meaning of "States rights" to
them?
What is-the meaning of
must be done away
trend
"sovereign States," of "local
j of Government in America during ernment" to them?
'moments of thought to the
the
i
the conclusion that there
Washington certain indi-
escape
are
in
It
the
ernment
j independent and sovereign state
I rights has passed, or will pass if
000
They would have us believe, it
seems,
that
the old
idea
of
| American Government under the
;
Constitution must give way to a
f
new
J fui
conception of an all-power Central government whereall control
l
under
t
Washington.
i
from
mental
bond
effort
financed
functions
penses
tive
;
group
?
been
,3l
;
of
ethical
criticize construc¬
tively— to these individuals, it
would
appear
that
any
form of
government that restricts the field
of
operation of the National Gov-r
INDEX
Page
,Our
Reporter's Report,.....
1129
—
1134
Bank and Insurance Stocks....
Calendar'
of New Security
1142
Flotations
Investment
Trusts
......
.
-.
1135
^.Municipal News and Notes......... 1136
Personnel
1132
Items.
1133
Railroad Securities
(The) 1138
Securities Salesman's Corner
Tomorrow's Market—Walter Whyte
Says
............................
directed
compensation
said:
tional
operating' ex¬
principle of direct gov¬
ernment financing by a central
into line with prospecconditions. Despite
improvement
in
the
;
Accordingly the
sive
more
houses in the
that
faith
of
-
find
it
■;
Selector
pointed
was
the
It
is
in
out,
for
need
moderate-sized investors who
scattered
are
proposal, and how it fits into
a
general scheme of establishing in
(Continued on Page 1136)
The A.B.A. has
a
war
in 1942, it must be
recognized that situations may
develop when such
needed
and
quickly.
little
must
country.
after
ness,
That
$20,006,
firms
the
on
government
of
right
track
ratings
for the undesirable
a cure
features
and
will destroy the
rating plan.
Types of
business, such as banks, that
,
maintain
continuous
Membtrt
New
York
.
Stock
are
appears, evi-
NATIONAL BANK
credit,
too
the
benefits
much
of
unemployment
an
this
as
federalizing
Established 1927
of EGYPT
;
to
the
to
be
im¬
provide merit ratings, this mat¬
ter
and
delibera4
is
which nfiight well
the serious attention of
one
engage
State
bankers
associations.
The A.B.A. has followed
64 Wall Street
Commission Orders Carefully
Executed
for
development of this pro¬
posal and will continue its ef¬
forts
to have
the
States retain
their
control
and
management
of unemployment compensation
insurance.
,
Mr.
Wiggins reiterated, the op¬
position of the A.B.A. to proposals
that the Federal
Reserve
reserves,
that
Banker^
banks, and he declared that the
oppose
A.B.A. is opposed to the proposal
American
the
Association
should
this grant of
to the war
as
surance
not
authority, limited
period.-
to
of
non-member
the tax
remove
existing
reflected
State
6
BOSTON
Troy
YORK
1
exemption
and
PHILADELPHIA
Albany
Pittsburgh
7
Williamsport
■
bonds.
in4
The
real program to
THE
j
CHASE
nation-
OF THE CITY OF NEW YORK
Cairo
PROVIDENCE,
£3,000,000
in
principal
Towns
Wilkes-Barre
and
Broaden your customer
all
the
correspondent
HIGH-GRADE
facilities
C.
Members
the
in
New
York,
Boston
SUDAN
Chicago
Stock
Member Federal Deposit Insuranos
St
Corporation
Exchanges
NATIONAL BANK
CarlM.
Loeb,Rhoades&Co,
61 BROADWAY
Over-the-Gounter
We
blocks of underlying,
Uganda
Burma, Ceylon, Kenya
,
45 Nassau. Street
TeLRector 1-S600
New York
Teletype M. T. 1-676
Subscribed
Paid-Up
Inquiries Invited
Bank
Zanzibar
HART SMITH & CO.
Capital.., .£4,000,000
Capital
£2,000,000
Fund........ £2,200,000.
Reserve
The
and
conducts
banking
and
Trusteeships
also
.
every
exchange
and
description
business
Executorships
undertaken
inactive
railroad bonds.
26,- Bishopsgate,
London, E. C.
Aden
equipped to liquidate
are
'
Office:
Colony .and
Members N. Y. Security Dealert Ass'n
and
in
-
INCORPORATED
Buenos Aires
Government
Colony
Branches In India,
Kobbe, Gearhart & Co.
London
Head
the
to
Kenya
Securities
\ NEW YORK
To The Institutional Seller:
of INDIA, LIMITED
Bankers
service with Chase
RHODE ISLAND
INVESTMENTS
AGENCY
Branches
EGYPT
BANK
F. H. PRINCE
King William Street, E.
Watertown
on
municipal
and
£3,000,000
.
....
LONDON
State
in the War
Displacement Benefits Bill.
New York
and Individuals
120 BROADWAY, NEW
Register No.
FUND
System
be given authority to regulate the
Cairo
FULLY PAID CAPITAL
RESERVE
Institutions
closely
the
tion by the Interim Committee
that the decision was reached
BANKERS
Head Office
pro¬
posal will take away from the
States their present powers to
free
vital
war
ful consideration
Exchange
Commercial
full
insurance rate that reflect such
stabilized employment.
Inas¬
of
periled by unforeseen develop-:
ments.
It was only after care^
r
R. H. JOHNSON 8 CO.
INVESTMENT SECURITIES
and
employment should receive the
NATIONAL
FINCH, WILSON & CO.
are
opposed to proposals to federalize
Page 1138)
on
merit
merit
might be too
a bombing
of
New York for
pointing in the di¬ unemployment compensation
(Continued
for
Nationalizing the system
is not
are
maintenance
the
in¬
and
objectionable
there may be in the
visions
good.
flow of funds and the protection
of the market for government
is
na¬
Whatever
State
unemployment
compensation systems, the pro¬
exercised
He also stated that the A.B.A.
Investors Active
rection of the smaller investor
.
The
ment.
success
.
Small
.
a
,
There
time
powers
be
basis.
han¬
be
and not
present
con¬
economy
securities
throughout the
The
,
only to appre¬
necessary
disaster.
financial
should
State
a
features
of the final resorts of gov¬
threats th&t arise out of
have
gearing fa¬
cilities
to
render
advisory
service to greater numbers of.
on
out above
come.
It iS
on
equalities
sistently opposed the granting
of such authority in peacetime.
However,
under
the
stern
investment banking busi¬
prior to the flood of huge
refundings, in the era following
banks, insurance companies, sink j
the setting up of the New Deal
ing funds, trust funds, retirement
and its easy money policy, was
systems, etc.
It is not necessary
built up on small sales, averaging
to point out. that the income from
$2,500 or less. But in the refund¬
taxing only future issues would
be negligible for many years to ing period, the average worked
most of such bonds are owned by
It
desperately needed at the mo4
figures of the Treasury
Department Itself show' thht'ri a
very small portion of the total
State and municipal bonds out 4
standing is held by wealthy indi-f
viduals, and rather that by far
financing, in
is a dangerous
one
during the past 10 years. It
is not necessary to point out that
the
sound
quarter, is reviving emphasis
even
even
of
every
Washington or
Congress
to ■ * pass
legislation
granting powers that might be
it
equalled
sense
to
ernment in the face of
aggres¬
business
repugnant
one
time to come.
some
is
program even in wartime.
moving refunders, which have
rule for
bank
peacetime.
provided the main fare in re¬
cent years, are likely to prove
;the exception rather than the
;
dled
This
tenor of the high-grade mar¬
ket, it is evidently the widely
held conviction; that the fast-
ciate the full consequences of this
1133
(The)1' 1138
Our Reporter on, Governments— 1144
Uptown After 3..
1140
Bond
breach
would be hard to
American
purchase Government bonds
directly from the Treasury, and
.
mental right to
the
the Waldorftold by A. L. M. Wiggins, Second Vice-President
Bankers Association and Chairman of its Com¬
were
may
deal
new
some
with
not
It is
has
toward getting
woujd "derive $200,000,4
issues.
.
good
a
,
s
-
town contacts.
necessary
in Washington,
to point out that subjecting the been
inclined
toward
getting
who, we must admit, carry no
income from municipal bonds al¬ themselves in shape to handle
small- weight in determining the
ready outstanding, that have been new money issues which, while
policies of this National, Adminisin
bought and sold for decades with smaller
amounts,
require
tration, and who will carry ever
the understanding that they Were greater selling effort than is the
increasing weight if the American
exempt from the Federal Income case in refunders.
people be denied, through the
Tax Collector, would be an unr
The reshaping of programs,
pretense
of war, their- funda¬
this
To
1
emanates
of
Moreover,
income from taxing both fu¬
ture
and outstanding issues of
State and municipal bonds:
It is
not necessary to; point out that
$175^000,000 more in taxes would
have to be paid by State arid local
taxpayers to make up for the in¬
creased cost of financing school
buildings, streets, sewers, poor re¬
lief and the myriad other govern^
Credit Clinic of the American Bankers Association at
mittee on Federal Legislation.
Mr. Wiggins is President of the Bank
The recent comparative lull in
of Hartsville, at Hartsville, S. C,<*>
new
underwriting, activity has In turning to the
alize or federalize unemploy¬
subject of legis¬
provided some of the older firms
ment
compensation insurance
lation, Mr. Wiggins stated the po¬
in the business with an opportu¬
has not yet reached the legis¬
sition of the A.B.A. on the provi¬
nity to do some "fence-mending," sions of
lative
stage but may turn up
the War Powers Bill
so
to; speak, with their out-of- under
at
any
time.
which the Reserve Systeni
Unemployment
is not; necessary to; question
claim that the Federal Goy4
ividuals who feel that the day of
these individuals have their way;
gov¬
Country Will Not Be Destroyed, Says ABA
Astoria here
,
past ten years, can scarcely
Copy
a
Financing of the war must be done in a way that will not
destroy, the credit structure of the country, bankers attending the
REPORT
we
'
J
REPORTER'S
circles
the
on
:
the current interest evinced
Price 60 Cents
War Must Be Financed So Credit Structure
OUR
Seen Threat To State Autonomy
of
view
Section 1
-
OBctj
Thursday, March 19, 1942
Municipal Bond Tax Proposal
In
In 2 Sections
of
Members
New
53
York
Security
Dealers
WILLIAM ST., N. Y.
Bell
Hew York
Teletype
NY
Assn.
ffflKPmhii t &
GUARANTEED RAILROAD STOCKS-BONDS
HAnover l-SMS
1-391
Montreal
Toronto
IS-xj
Telephone
BO.
.
Or. 3-6400
13 Broadtfay
Teletype
fl
NEW YORK
N.Y. 1-1661
|
1130
THE COMMERCIAL & FINANCIAL CHRONICLE
MARKETS FOR
The
MORTGAGE
CERTIFICATES
issued
BOND
&
LAWYERS
are
GUAR.
INSURANCE
MORTGAGE
TITLE
&
associated
now
PAULA RICE
/
RANDALL
other
MORTGAGE
local
G.
40 Wall St.
N. Y.
,
Bell
Stock
mission
We
E.
the
occupy
address
same
'
'
sion : found
Rapcds, Mich.
1-2033
City
SECURITIES
STRAUS
authorized
Per
j view of
Established
stock
1920
Members-New York Security Dealers Ass'n
of
approximately
of
the
company's
rolling
by the Army and Navy for
*20%
CHICAGO, ILL.
Lebanon
$.88
change)
to
KATZ BROS.
increases and tee
monopolization
(subject
6'/s-7'/.
existing
fares
Ox
inadequate, in
wage
'
1940
sh. $4.44
com.
MARKET;
i the company to be
COMPANY
135 S. LA SALLE ST.
13
Company to increase
its rates,
fares and charges by
10%, said increase to become ef¬
fective ten days after filing the
necessary
tariffs.
The Commis¬
.
M. MARPLE
at
March
on
1941
the Pullman
.
HARPER
MARGUERITE
will
-
"•/
\
Earnings $717,234 $142,768
The Interstate Commerce Com¬
-
Thursday, March 19, 1912
FEDERAL SCREW WORKS
Authorized by ICG
Exchange
NY
Atlantic
Pullman Rale Increase
•
-
WEGUSEN *
104 Federal Square Bldg., Grand
WHitehall 4-6300
Teletype
Philadelphia
'
V.
•
us
ALBERT
TAKENS
B.
companies
York
Neio
with
LOUIS
SCHUYLER M. RABER
CO.
tiewburger, Loeb & Co.
Members
'
WAYNE R. RJCE
HARPER
W.
TITLE GUARANTEE & TRUST CO.
All
of
CO.
CO.
CO.
LAWYERS TITLE & GUAR. CO.
N. Y. TITLE & MORTGAGE CO.
STATE
personnel
Harper, Wegusen & Yonkman, Inc.
by
MORTGAGE
HOME TITLE
following
"
.
40
Exchange
N.Y.
HA 2-277k
BELL TELETYPE NY 1-423
troop movements.
Weedoo Commissioned
Autocar
Corp.
Wickwire
Vertientes
L. Weedon, Vice-Pres¬
CHICAGO, ILL:—The Board of
Charge of Sales of Hugh Governors of the Chicago Stock
W. Long and Co., is withdrawing Exchange
voted
to
amend
the
from the securities business
J.F.Reilly&Co.
New
Members
York
System
Teletype,
been
C/Ds
Board
the
Executive
Davis
don
Common
Bell
Teletype
NY
ciated
since
BROADWAY
with
as
1-2361
For
he
has
change
May 18.
It
is
three
the
branch
been
asso¬
during
the
planned
hundred
of
the
metropolitan
business
blanks
mem¬
clubs
stamp
be
may
to
are open
bers
about
exhibi¬
on
in
Entry
area.
obtained
from
Frank W. Kirk, James E. Bennett
& Co., 50 Broadway, New York
the
been
Syndicate
to
printed
commemorate
May 17, 1942.
derived
a
charge; of
among
dealers and
salesmen
throughout the eastern,
southern^
the
event
sale
of
be donated
to
on
these
a
War
Service Organization. The price is
ten cents each or twelve for one
dollar.
sub-contract
which Mr. Davis is
Lyman Barr,
ILL.—Crane,
Mc¬
Mahon & Co., 209 South La Salle
Street, members of the New York
Stock Exchange, is dissolving as
March
senior
31.
Charles
partner
from
La
of
the
Salle
A.
from
a
director,
H. Davis & Co., was elected to the
to
succeed
next June.
the
Mr.
Davis,
annual
to
election
"
Crane,
firm
Street
will
tem¬
porarily.
of the
future
appointed
was
as
or
Boston S. E,
tips Rates;
N. Y. Curb Considers
Chairman of the Commit¬
as
tee
on
H.
Wilson
as
Vice-Chairman
Floor
Procedure, and Hugh
succeeds
Mr.
of
Stewart
the
Floor
on
the Boston Stock
Mar.
Exchange
on
16.
In
is
York
understood
Curb
studying
the
commission
take
that
the
New
Exchange 'is <'also
problem of higher
rates
and
will
soon
action.
some
A. 0.
in that service
cars
Securities Ac! Changes
Appointment
of
House subT
amendments
to the Securities Act of 1933 and
committee
to
Securities
was
a
draft
Exchange
announced
on,
Act
of
March
16
by
Of Renter Mitchell Co.
Representative
Lea
(Dem.;
Calif.), Chairman of the House
Interstate
Commerce
Committee.
CHICAGO, ILL.—Remer, Mit¬ The sub-committee will be headed
chell & Reitzel, Inc., 208 South La by Mr. Lea and will include Rep¬
Cole
Salle Street, announce" that A. O. resentatives
(Dem.,
Md.),
Figge has become associated with
Crosser (Dem.,
Ohio), Wadsworth
as
A. O.
As the basis of its work
Figge & Co.
use
So.
The
ciation
dinner
Municipal Dinner
Southern
will
Municipal Asso¬
hold
at
a
meeting
and
Oldelmonico
Oscar's
Restaurant, 56 Beaver Street, New
York
City, Friday night March
20, 1942.
,
the
voluminous
Pullman
Co.'s
(Rep.,
it will
record
situation
announcement of approval by Interstate Commerce
Present
J
Y.
Teletype
WHitehall
NY 1-609
revenue
National
Van
of
Dodge 4s 1935
Iowa Central 5s 1938
Iowa Central 4s
1951
Minneapolis & St. Loir's 5s 1934
Minneapolis & St. Louis 4s 1949
Minneapolis & St. Louis Ext. 6s
greater
Members
63 Wall
New
York
Morgan & Co. Incorporated
reported
*'■
on
March 12.
The institution
St., New York, N. Y.
Bell
incorporated
was
Com.
Fireproofing
5s
&
Com,
Fulton ir. Wks. 6s, Pfd. & Com.
industrial Real Est. Tr. 3s,
Poii
New
England
w. s-
Theatre
5s
U. S. Stores Pfd
Harry Parker Co.
74
Trinity Place, New York, N. Y.
WHitehall 4-8565
Teletype NY 1-1102'
,
N. Y. Curb Unlisted* Not
Exempt From Mo. Blue Sky
istration in Missouri of securities
which
fully listed on the New
Exchange does not ap¬
ply to securities which are ad¬
mitted to unlisted trading privi¬
leges, * Russell Maloney-, -Missouri
Commissioner of Securities,, has
advised " all
registered Missouri
are
York Curb
dealers.
Under
circumstances
no
Mr.
on
licitation of such unlisted securi¬
State bank with trust powers
April 1, 1940, taking oyer the
business, conducted by the
private
former
banking
firm of J. P.
Morgan & Co. Since its'change to
a
commercial bank, it has been
the largest bank in the 'country
which
is
not
Federal
of J.
Incorporated
were
total
member
a
Reserve
resources
listed
of
the
Total
System.
P. Morgan & Co.
Dec.
31,
1941
on
Maloney points out, must
ties
be
The
Blue
exemption from Missouri
laws granted to fully
listed
Curb
in
securities
issue
our
of
re¬
was
March
Searing, Wilson To Be
Robt.
5j page 545).
March
11
there
distribution
through
a
was
of
its
a
fur¬
stock,
secondary distribution,
Winthrop Partners
Joseph P. Searing and Richard
B.
Wilson
will
partnership
&
Co., 20
York
Winthrop
Place,
New
City, members of the New
Exchange,
Searing
firm for
the
admitted-to
be
Robert
Exchange
York Stock
Mr.
in
some
bond
has
on
been
time
as
April 1.
with
the
manager
of
department.
We invite
inquiries and furnish
Trading Markets in
Petroleum Conversion
Corp.
Virginia Iron Coal & Coke Co.
Oklahoma Interstate Mining
block of 500 shares believed
an
accumulation of shares in
market
from
offering.. The stock
per
share,
the
February
was
priced at
less
a
$6 dealer
S. Joseph Florentine
Established
II
1937
BROADWAY, NEW YORK
Telephone WHitehall 4-0386
discount.
wmm.
-it-,
5,
939.
page
of
16,500 shares of the
Morgan & Co. stock at $206 a
share, which represented 8%% of
the amount outstanding. The
only
purpose of this offering, it was
said, was to further broaden the
ownership of the stock, (see issue
$198
unless
registered
$749,725,411 and
deposits at $689,361,244.
FDIC assessment amounts to 1/12
to be
Missouri
been
Sky
ported
membership in the Federal De¬
posit Insurance Corporation. The
the
also
in the Missouri Securities Depart¬
ment. " 1
it
a
in
made
have
same
so¬
at
Membership
in
the
Reserve
System automatically carries with
ther
Teletype NY 1-897
&
as a
On
Security Dealers Association
5s
The recent exemption from reg¬
Morgan Asks Federal :
Reserve Membership
Incorporated
4-4970
Radiator
might be
than that in
its ' net
of Feb.
1932
5b
Camp Milk Pfd. & Com.
Nat'l
in
operating income
would, probably,be somewhat less.
Offerings available of
Frederic H. Hatch & Co.
N.
gross
Theatre
1942 under present rates
of
ST.,
Cleveland
Philadelphia Dairy Com. & Pfd,
ordi¬
are
of 1% of total deposits. The bank's
hearings conducted last year on
membership in the Reserve Sys¬
changes in the two acts recom¬
tem would also involve a
sub¬
mended by the New York Stock
scription to Federal Reserve bank
Exchange and the New York Curb
stock equal to 6% of its
capital
Exchange, the Securities and Ex¬
and surplus.
change Commission and represen¬
In February, for the first time
tatives of the brokerage business,
in history, there was a public dis¬
according to the Associated Press.
interesting Reorganization
Des Moines & Ft.
PINE
National Food "A" & "B"
fair estimate that while the
a
J. P.
Group Named To Draft
York, N. Y.
NY 1-1557
narily subjected, the profit, if any,
from that service is small, the
Pullman Co. stated in its petition.
Accordingly, the Commission said,
has applied for membership in the
Federal Reserve System, it was
1934
Figge Now V.-P.
Utility
1#
New
years.
estimate, however, that
probably will be a slight de¬
crease, or at least no increase in
civilian
travel
and
that
troop
movements will most likely in¬
crease.
Because of the relatively
low rates at which troops on gov¬
ernment order move, the irregu¬
larity of the service and the large
proportion of idle time to which
Committee.
New. schedules of non-member
BH 198
25 Broad St.
in 1942
John C. Stewart, present
Commission of modified plan
of reorganization
4
revenue
gross
Birmingham, Ala.
Dtreot Wire
Vice-Chairman, succeeds Mr. Tur-f
Recent
G.A.Saxton&Co.,Inc.
New Orleans, La.
does
1941,
MINNEAPOLIS & ST. LOUIS R. R.
a
move¬
there
somewhat
ner
An
Preferreds
troop
Members New York Stock Exchange
Maritime Bldg. Brown-Marx Bldg.
The Commission said the Pullman
tribution
Public
of
Steiner, Rouse & Co.
to the
as
compared with previous
appointed
member of the Exec-:
Committee to succeed Mr;
•
uncertainty
volume
Chairman of the Executive Com¬
mittee and Alfred E. Turner was
a
Debardelaben 4s, 1957
ments," the Pullman Co. felt un¬
able to make any intelligent esti¬
mate as to
the probable traffic
it is
Harry M. Payne
J
The Commission stated, that be¬
,,
the
partner of Paul
a
Vice-President. Mr. Figge (Rep., N. Y.), and Paddock
for many years was President of 111.).
CHICAGO,
retire
his
a
until
Birmingham El. 7% Pfd.
$2,202,252.
Co.
of
Burgess-Norton Co. of Geneva, of
•
them
Crane, McMahon Dissolve
of
under
southwestern and middle-western utive
States.
' Davis.
cover
Any and all profit
from
will
covers
cachet
this
leave
a
Illinois
Corporation of -De
Kalb, which corporation: will Op¬
a
manufacturing defense
the
society is also sponsoring
bi-colored
from
take
Mri
three
past
in
City.
The
to
of
Chairman
as
Committee. "
commission rates went into effect
have
to
frames
tion, and entries
of
week
member of
a
erate
unit
$2,979,517 would be payable
income taxes, leaving to the Pull¬
man Co.a
net increase of about
cause
Chicago
same time;
ern
serve
and
Stock
Exchange Philatelic
; Society will hold its Seventh An¬
nual
Stamp Exhibition in con¬
junction with the 150th Anniver¬
sary of the New York Stock Ex!
as
and
soon
absence
service.
widely known
investment
Hold Stamp Exhibit
in
the
sales and is
NYSE Philatelists To
has
District
a
Manager.
years
The
is
Long Company
Board
inception in July, 1936,
its
first
YONKERS.
N.Y.
MArble 7-8500
2-7634
REctor
S.
20
Weedon
serv-r
France
Lieuten¬
a
of
INC.
,
saw
same
Sidney L. Weedon
Mortgage
Schoonover, deWillers & Co.
BROADWAY
20tfy
Wee¬
in
ant
Mr.
120
regret,
Ralph W. Davis
the
ice
Certificates and Bank Stocks
NEW YORK, N.Y.
cere
Alabama Mills
accepted, with sin¬
the resignation of
volume
ports for duty
Major
Thompson Paper Commoi
Westchester County
Board
in Washington
as
All
The
re¬
Mar.
the
on
Exchange at the
in¬
tracts
rates be4
new
firm, Paul H,
During Davis & Co., to assist Thomas
World War I
Courtney, President of the North¬
Houston Oil Co. Preferred
Eastern Corp.
and
on
Thompson Paper 3 V2S, 1958
Stevens &
the
i c a1
•
Warfare Serv--
Phila. & Read. C.U 6s 1949
Stevens &
Stock
a
in
em
effective
came
ap-
The
10%
produce additional
revenue
of $6,171,186, of
railroads under operating con¬
and $989,417 as additional
to
Ex¬
oh March 16.
Army, He
Major
1-248#
Phila. & Read. C. & 1.5s, 1973
the
the
ice
/
of
Exchange which became effective
Ch
Y.
N.
rules
commission in
pointed
New York, N. Y.
IIAnover 2-4660
Bell
commission
1, 1942, change to conform to the increase
accept
a in rates on the New York Stock
has
Dealers Assn.
Security
of
April
to
50 Broad St.,
as
earnings, it
the
that
would
gross
which
Sidney
Camaguey Sugar
•.
Appointee
ident in
Spencer Steel
estimated
was
crease-
In Chemical Branch Raised; New
Liberty Aircraft
On the basis of 1941
Cgo S. E. Commission
!
■Volume 155
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4056
COMMERCIAL and
Phila. Bond Club To
FINANCIAL CHRONICLE
;
U.
Beg.
,
S.
Office
Patent
Welcome SEG To
William B. Dana Company
Publishers
;
t
25
>
BEekman
3-3341
| Frederick W. Jones, Managing Editor
delphia will formally welcome to
this city members of the Securi¬
ties and Exchange Commission at
the club's luncheon today at the
[
Bellevue-Stratford
Herbert D. Seitaert,
Editor and Publisher
j
William Dana Seibert, President
I William
D.
Riggs, Business Manager
Published
twice
week
a
[every Thurs¬
advertising issue)
news and
with a statistical Issue on Monday]
;
•
offices:-Chicago—in charge of
Gray, Western Representative,
Building (Telephone State 0613).'
London—Edwards & Smith, 1 Drapers'
Other
Fred
Gardens, London, E.C.
Copyright
1942
by
William
B.
Dana
Company.
Reentered
second-class matter Feb¬
as
ruary 25,
1942, at the post office at
New York, N. Y., under the Act of Mar,
1879.
[Possessions
Subscriptions
fc>f
"ELEMENTARY,
Participating Units
MY DEAR WATSON"
"If
4Prospectus obtainable from the undersigned
the
for
"Outlook
the
on
was
Invest¬
-
w
25 Broad
Street, New York
Canada,
in
United
States
and
$26.00 per year; In Dominion
$27.50 per year; South and
Central
America,
Spain,
Mexico and
$29.50 per year; Great Britain,
Continental Europe (exceptSpain), Asia,
Australia and Africa, $31.00 per year,
Cuba,
NOTE—On
account
of
fluctuations
the
In the rate of exchange, remittances for
.foreign
subscriptions
and
advertise¬
ments must be mad§ in New York funds.
TRADING MARKETS
PACIFIC COAST
will provide
luncheon
The
N.A.S.D.
Queries Its Members On
Everything Except Aunt Funny
the
first opportunity
for any group of
the Philadelphia investment com¬
munity to meet the members of
the commission, which has just
moved its headquarters to Phila¬
The National Association of Securities
Dealers, Inc. has
just sent an extensive questionnaire to its members to
ascertain their capital strength, practices pursued with
delphia from Washington, D. C. as
part of the war time measure for respect to handling customers' securities and cash, method
decentralizing
Federal
govern¬ of confirming transactions, information regarding personnel,
ment agencies.
volume of business transacted, et cetera.
(This means just
Walter C. Miller, R, A. Cox and
about everything except whether or not Aunt Fanny has
J. Myron Honigman, members ol
Securities Com¬ halitosis or b. o.)
mission, I. G. Myers, Secretary
The fact that the N.A.S.D. is going into the capital
and Hardie Scott, Counsel of the
commission, and Mayor Bernard strength of its members would seem to indicate that they
Samuel are expected tb attend the are falling for the long exploded theory that money and
luncheon to join members of the
integrity are synonymous. This of course is defintely not
Bond Club in welcoming the SEC
the .case.
/■■
:
&
Co.
Inc.
Member
Los
40
wall street
New York
.
Freight Rate increase
!
Postponement Denied
) The Interstate Commerce Com¬
mission
March
on
will be presided
16
denied
the
petition of the Office of Price
Administration, dated March 11,
by Arthur S. Burgess, Presi¬
5s,
Aldred
portion of the ap¬
is truly a self-policing
organization, as originally contended,^ why shouldn't their
quarters
in the Penn Athletic members,'big and little alike) have some voice in deciding
Club
Building
on
Rittenhouse whether it is essential in the public interest that they supply
Square, which has been taken
a million and one
particulars regarding themselves, before
over
for that purpose. The five
members of the commission are they are told they must fill out an extensive questionnaire
expected to officially occupy- their as they're now being asked to do?
Incidentally, if
staff of the SEC has already been
Members
Annual Mealing For
..
Pittsburgh Bond Glub
In,
.
;
In Armed Forces
Outlook For Rails
a
discussion
on
William O. Evans, who has been
the outlook
burgh Athletic Association. Elec¬
of officers
The commodities included:
Ce¬
several
will
held
be
& Rust, 61 Broadway,
York City, declared that in
Bampton
and
New
opinion, railroads will not lose
more
business to trucking
companies which up to the pres¬
presented to and discussed ent time have been their chief
matters
of
vital
Hallgarten & Co., 44 Wall
New York City, for the
past fifteen years in charge of
their Fiscal Agency Department,
his
impor¬
is reporting
S. Navy on
Chief
for duty with the U.
March 16, 1942, as a
Mr.
Yeoman.
Evans
was
formerly with the U. S. Navy for
about eight years in that capacity.
any
Morton S.
Webster of
Stern,
(natural
and
Portland);
Lauer & Co., 30 Pine Street, New
also be
ores
and
concentrates;
York City, has taken leave of ab¬
with the members.
competition. He said that over a
iron and steel scrap, not copper
Following the meeting a party period of time trucks are going sence to accept an appointment as
clad; lead ores and concentrates;
Lieutenant in the U. S. N. R., and
will be held in the Annex of the to become
poor risks for private
lumber and lumber products as
will serve on the Naval Aviation
Athletic
Association
with
the
capital.
:
from
the saw or
planing mill,
Cadet
Selection Board in-New
usual refreshments, including the
Mr. McGinnis pointed out that
including logs, piling, poles, spars
York.
oyster bar. The facilities of the
in 1939, the railroad industry as
.and ties,» but not including fin¬
Club such as bowling, swimming,
I a
ished products; non-ferrous scrap
whole
did
a
gross
business
Dudley N. Schoales, Blyth &
cards, etc., will be available to
{copper and lead, including scrap
amounting to $4,300,000,000 and
the members at their own' ex¬
Co., Inc., 14 Wall Street, New
that
this"
year, they will probably
battery plates); petroleum and
York
City, has left for Washing¬
pense.
do a gross of $5,100,000,000.
He ton where he will be on the staff
petroleum products (crude petrol¬
Guests,
$3.50;
no
charge
to
said
that
railroads
are
the
largest
eum, gasoline, liquidified petrol¬
of
the
Under-Secretary of the
members.
eum gases, tractor distillates, and
private business in the country Navy.
similar distillate type motor fuel
and still handle 80% of "all ton¬
tance
ment
copper
under
"new
business"
will
'
pther than gasoline, kerosene, in¬
oils,
diesel
fuel oils,
residual
burning or heating fuel oils, lu¬
Veron To
Manage ieal
Estate Dept. For Dunne
nage
moved in the transportation
industry.
Dunne
In discussing
income bonds, Mr.
McGinnis said that they were be¬
&
including
motor
oils, and as¬
•
.
'
for
1942,"
descriptive
a
booklet
discussing the currant situation in
issues
of
the
Boston
&
Maine
Railroad, with particular empha¬
sis
on
the
first
preferred stocks,
has
been
tion
by Clark, Kohl & Eyman, 55
Liberty
from
tained
prepared for distribu¬
Street,
whom
New
copies
York
may
upon request.
be
City,
ob¬
concluding,
Mr.
McGinnis
audience to take stock
Irving Manney Is Now ■urged hisrailroad
security holdings
steps to profit by the
With Eisele & King 'present opportunities
offered in
of their
and to take
Irving
associated
Manney
with
has
Eisele
become
.
&
partment.
merly
Greene.
a
Mr. Manney
partner
ip
was
.
Manney
&
;
H. Patton Visiting
Broadway, New York
We
Tele. NY 1-1610-11
Are
Specialists
In
Inquiries
Invited
In
Lawyer*
Mtge.
Co.
Ctfs.
Lawyers
Title
Co.
Ctfs.
Co.
Ctfs.
Title
Co.'s
Bond
and
Stanley
Patton
New
York
Coast
as
Guard
active duty
Lieutenant
in the
will report for
and
in about a week.
J. GOLDWATER & CO.
INC.
|
Members New York Security Dealers Assn.
I
39
I
-
Broadway, New York, N. Y.
HAnover
"Maintaining
title
the
of
Putnam
&
a
Balance" is the
March
Co.,
6
of
Bulletin
Central
Row,
Hartford, Conn. It points out why
investors
should
buy
United
States
Defense
Bonds
and
also
why they should support the mar¬
ket for other securities.
the Bulletin may be
had
Copies of
upon re¬
quest from Putnam & Co.
N. Y. Bond Club To Hear
E.
Southern
^
_
2-8970
Teletype NY
1-UM
I
Harper, WegHsen With
Straus In Sr. Rapids
4
(Special
to The
GRAND
Straus
Chronicle)
Financial
RAPIDS,
Securities
MICH.—
Co.
announce
the association with them of Ran¬
W.
dall
Schuyler
Harper, Louis Wegusen,
M. Raber,
Albert E.
Paula Rice, Wayne R.
Harper,
Rice, G. B. Takens and Marguer¬
ite M. Marple.
All were formerly
of Harper, Wegusen & Yonkman,
Inc., of which Messrs. Harper and
Wegusen were officers.
Straus
Securities
Co.
will
take
over
the
former offices of
Harper, Wegusen
& Yonkman in the Federal Square
Building,
establishing
a
new
branch of the firm in this city.
—SSEBM—
N. Y.
—
Military Academy
Alumni Ass'n Elects
The Board of Governors of the
York
New
Alumni
Military
Association
Academy
elected
the
following officers for the ensuing
Chairman
of
dent:
William
firm
of
Co.
Maintaining A Balance
of Timber-
^
Participations
Complete Statistical Information
Vice-Pres.
lake & Company,
is
Mtge.
other
Trust
President:
Norris, President of
Railway Company,
will address the Bond Club of
New York at its next luncheon
N. Y.
&
all
Bank
the Board:
Frank
Co., 25 Broad Street, J. Reynolds,- President of Albert
City, has received a Frank-Guenther Law, Inc. Presi¬
meeting to be held at the Bankers
Club on March 25. J. Taylor Fos¬
Portland, Maine, ter, President Of the Bond Club,
will
,preside at the luncheon.
;
visiting in Wgll Street
n>.
H.
for¬
Rosenthal, Ladenburg,
commission
the
King,
Broadway, « New
their trading de¬
M.
Ernest
this field.
members of the New York Stock
Exchange,
39
York City, in
Exchange
year:
Paul
Thalmann &
Co., 30 Broad Street, ing introduced into all railroad
New York City,
announce
that recapitalizations, and they could
aviation and stock
N. Edward Veron is now asso¬ usually be bought at a tremendous
phalt and asphalt products); rub¬ ciated with them as
discount. If railroads earn the in¬
manager of
ber scrap; and crude sulphur.
their real estate securities depart¬ terest, it hars to be paid, he con¬
On the basis of 1941 traffic, the
ment.
Mr. Veron was formerly tinued. "With income bonds," he
freight rate increases are esti¬ with Snow &
Co., Inc., Termini & said, "you don't have to worry
mated to yield the railroads in
about what the tax situation is,
Co., Mortgagee Distributors Corp.
1942 approximately $203,000,000.
the
contingent interest
and for 20 years was in business because
for himself handling real estate comes before taxes and that, of
course, is a novelty in investments
B. & M. Highlights
mortgages and practicing law.
these days."
"Highlights on Boston & Maine
In
oils,
bricating
Curb
REAL ESTATE SECURITIES
,
cluding range oil or stove oil, dis¬
tillate
burning, heating or fuel
York
Dlgby 4-2290
with
for railroad bonds given before a
Street,
group of representatives of banks
;
reports for the year will be read;
1048).
page
Co.'
^
Chicago Stock Exchange
39
the N.A.S.D.
quarters within the next few days.
tion
Trust
1967
loseph McManus &
by many investment houses does not necessitate
having more than a nominal amount of capital.
-
their
PITTSBURGH,
PA.—The an¬ and other financial institutions in
effective date of the freight rate nual meeting of the Bond Club Palm Beach, Florida, Patrick B.
of
Pittsburgh will be held on McGinnis of the New York Stock
increases on ten commodity
March 26 at 7:00 p.m. at the Pitts¬
Exchange
firm
of
Pflugfelder,
groups from March 18 to April 15,
(see
"Commercial
and
Financial Chronicle" of March 12,
Investment
New
;
1946
4»/2s,
conducted
j942, seeking postponement of the
1 9 4 2
Thermit
Reynolds Realization
The truth of the matter is that the character of business
dent of the club.
A substantial
&
Common
installed in the commission's new
Telephone Whitehall 4-0650
4-6551
■
proximately 1,200 members of the
Angeles Stock Exchange
Dept."
WHitehall
Metal
•,
The luncheon
over
Wyetii
Securities
guests
commissioners.
SECURITIES
just
ones,
expected
are
the Pennsylvania
DIRECT PRIVATE WIRE TO LOS ANGELES
dead
STREET, NEW YORK
Telephones
to be present as
of the club. Besides Mr.
Purcell they are: Robert E. Healy,
Sumner
T.
Pike,
Robert
H.
O'Brien and Edmund Burke, Jr.
if you want in¬
or
Lichtenstein's
on
WALL
99
gfet a quote on
about
Obsolete
-
Teletype ny 1-5
All members of the commission
crime;
a
call
to
do? whose very Issuance
or
formation
Spencer Trask & Co.
Business,"
want
you
cat
a
when
Hotel
mmmmmmmmmmmmmm
Washington Railway & Electric Co.
Chairman of the
Commission, will be guest
speaker. He will address the club
ment Banking
mmmmAND COMPANY
H.
Field
!
$2.20 Cumulative Preferred Stock
Ganson Purcell,
Thursday, March 19, 1942
day (general
^Connecticut Light & Power Co.
Oily
PHILADELPHIA, PA.^— Mem¬
bers of the Bond Club of Phila¬
Spruce Street, New York
i
1131
Lamb
Charles
John
of
of
the
Lamb.
G.
Frank
G.
law
Vice-
Shattuck,
Shattuck
(Schrafft's), Secretary-Treas¬
urer:
B. W. Pizzini of B. W. Piz-
zini & Co.
Volume 155
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4056
COMMERCIAL and
Phila, Bond Club To
FINANCIAL CHRONICLE
He*.
1
8.
D.
Office
Patent
:
William B, Dana Company
Publisher*
J
25 Spruce Street, New York
;
Editor and Publisher
W! Jones. Managing Editor
Frederick
|
William Dana Seibert, President
William D.
,
City
PHILADELPHIA, PA.
Mem¬
of
$2.20 Cumulative' Preferred Stock
■•V'ir
Club of Phila¬
Bond
the
—
*Gonnecticut Light & Power Co.
delphia will formally welcome to
this city members of the Securi¬
ties and Exchange Commission at
the club's luncheon today at the
Bellevue-Stratford
Hotel
when
Herbert D. Seibert,
i
Welcome SEC To
bers
BEekman 3-5341 ~
.
Biggs, Business Manager
.
11.
Gray, Western Representative,
Building (Telephone State 0613).
London—Edwards <te Smith, 1 Drapers*
Gardens, London, EC.
copyright
1942
William
by
B.
Dana
Company.
Reentered
»
23,
ruary
second-class matter Feb¬
as
1942,
the
at
at
office
post
be present as
guests of the club. 'Besides Mr.
Purcell they are: Robert E. Healy,
Sumner
T.
Pike, Y Robert ^ H.
O'Brien and Edmund Burke, Jr. The luncheon will provide the
expected
are
"ELEMENTARY,
first opportunity
B.
the Philadelphia
t
Subscription*
Fo*
United
In
States
and
mtoiu $26 00 per year;
In Dominion
of Canada. $27.30 per year; South and
Ontrai
America,
Spain, Mexico and
Cuos, $29.30 per year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia
and
$31.00
Africa,
year.
per
NOTE—On
account of the fluctuations
$n the rate of exchange, remittances for
*Prospectus obtainable from the undersigned
f
'y' r
w
25 Broad
(
-
tv-,.'
Street, New York
call
.
v
•
^
'.TV.
^
I
..
.
;>•
• V.
*
.-yv
:
\.V-
The National Association of Securities
sent
~~~
I
~
•
~
'
G. Myers, • Secretary
and Hardie Scott, Counsel of the
DIRECT PEIYATK HIKE TO LOS ANGELES
and Mayor Bernard
Samuel are expected to attend the
luncheon to join members of the
Bond Club in welcoming the SEC
commissioners.
l
" •
U
POACT
i ALiriv
vUAM
.
SECURITIES
>
■
/
ft
1. .V
;
The
•.
.
' •'■.
'
Wyetii
&
40
portion of the ap¬
proximately 1,200 members of the
Exchange
^
which
Square,
for
that
members
Freight Rate Increase
Postponement Denied
The Interstate Commerce Com¬
16 denied
the
been taken
purpose. The five
has
Aldred
expected to officially occupy,
Jhe
;.case.
Annua! Keeling
Financial Chronicle" of March 12,
For
ores
steel
and
iron
and
Portland);
and
concentrates;
(natural
copper
will
be
held
and
reports for the year will be read;
1048).
The commodities included: Ce¬
ment
officers
of
scrap,
not
copper
clad; lead ores and concentrates;
lumber and lumber products as
from
the saw or planing mill,
several
tance
matters
under
vital
of
"new
impor¬
business"
by
having
more
if
Incidentally,
the
N.A.S.D.
million and
truly
is
K vS Outlook For Railsi In,,
discussion
a
V?
outlook
the
on
for railroad bonds given before a
will
York
New
City, declared that in
railroads will not lose
business to trucking
companies which up to the pres¬
his opinion,
more,
any
,
will be
held in
Athletic
party
the Annex of the
'
•
^
•
—
•
.
•
.
t
r.*-
■
^
v' >.*
-
William O. Evans,
who has been
Hallgarten & Co., 44 Wall
Street, New York City, for the
past fifteen years ;in charge of
their Fiscal Agency Department,
is reporting for duty with the U.
S. Navy on March 16, 1942, as a
Chief
Yeoman.
Evans
Mr.
was
formerly with the U. S. Navy for
about eight years in that capacity.
their
been
chief
Morton
Lauer &
of
Webster
S.
Stern,
Co., 30 Pine Street, New
York
City, has taken leave of ab¬
to accept an appointment as
Lieutenant in the U. S. N. R., and
sence
Association
will
the Naval Aviation
on
serve
kerosene, in¬
cluding range oil or stove oil, dis¬
tillate burning,
heating or fuel
oils,
diesel
fuel
oils,
residual
burning or heating fuel oils, lu¬
bricating
oils,
including motor
aviation and stock oils, and as¬
phalt and asphalt products); rub¬
ber scrap; and crude sulphur.
On the basis of 1941 traffic, the
increases are esti¬
yield the railroads in
rate
to
approximately $203,000,000.
B. & M.
.
"Highlights
for
1942,"
Highlights
on
booklet
discussing the current situation in
issues
of
Maine
&
Boston
the
Railroad, with particular empha¬
sis
on
has
the first
been
preferred stocks,
prepared
tion by Clark,
Manage Real
Estate Dept. For Dunne
New
N.
Liberty
for
distribu¬
Kohl & Eyman, 55
Street,
whom
York
Edward
ciated
with
Co., 30 Broad Street,
City, announce that
Veron
them
is
now
asso¬
of
their real estate securities depart¬
ment.
Mr. Veron was formerly
as
manager
New
copies
York
may
tained upon request,
be
City,
ob±_
moved in the transportation
_
income bonds, Mr.
McGinnis said that they were be¬
New
introduced into .^11 railroad
recapitalizations, and They could
usually be bought at a tremendous
Coast
In discussing
ing
If railroads earn the. in¬
discount.
terest,-it hars to be paid, he con¬
bonds," he
tinued. "With income
"you
don't have
to worry
said,
and for 20 years was in business
for himself handling real estate
because
mortgages arid practicing law.
course,
is a novelty in investments
these days."
^7,V:-'
Irving Manney Is Now
With Eisele & Ring
urged-his audience to take stock
of their railroad security holdings
and to take steps to profit by the
Co., Inc., Termini &
Co., Mortgagee Distributors Corp.
Manney
associated
with
members of the
Exchange,
39
City,
partment.
merly
Greene.
a
in
has
Eisele
become
&
what
about
,P
the
the
taxes
concluding,
present
situation
tax
and
that,
of
McGinnis
Mr.
opportunities
this field.':
is,
interest
contingent
before
comes
In
Irving
offered in
in
was
In
ESTATE_SECURITIES
Inquiries
Lawyers
and
&
all
Bank
Invited
In
Mtge.
Co.
Title
Co.
Ctfa.
Mtge.
Co.
Ctls.
Title
Co.'s
Lawyers
other
Trust
Ctf®.
Participations
Complete Statistical Information
.
J. GOLDWATER & CO.
INC.
...
Members Neto York Security Dealers Assn.
39
Broadway, New York, N. Y.
HAnover
2-8970
Teletype NY
1-1203
Harper, Wegusen With
Straus In Br. Rapids ]
4
H." Stanley
Patton
for¬
Manney
&
,
York
Co., 25 Broad Street,
City," has received a
commission
as
Guard
lake & Company,
is
of Timber-
Lieutenant in the
and
will
active duty in about a
report for
week.
^
The
Straus
Financial
Chronicle)
RAPIDS, *
Securities
Co.
MICH.—j
announce
the association with them of Ran-;
dall
W.
Harper, Louis Wegusen,
M.
Raber,
Albert EJ
Harper, Paula Rice, Wayne R.
Rice, G. B. Takens and Marguer¬
ite M. Marple.
All were formerly
of Harper, Wegusen & Yonkman,
Inc., of which Messrs. Harper and
Wegusen were officers.
Straus
Schuyler
Securities
Co.
will
take
over
the
former offices of
Harper, Wegusen
& Yonkman in the Federal Square
Building,
establishing
a
new
branch of the firm in this city.
N. Y.
Military Academy
Alumni Ass'n Elects
The Board of Governors of the
New
York
Alumni
Military
Association
Academy
elected
the
following officers for the ensuing
Chairman
"Maintaining
a
Balance" is the
March
the
of
of
Bulletin
& Co., 6 Central Row,
Hartford, Conn. It points out why
investors
should
buy
United
Putnam
States
Defense
Bonds
and
also
why they should support the mar¬
ket for other securities. Copies of
the Bulletin may be
had upon re¬
quest from Putnam & Co.
N. Y. Bond Club To Hear
E.
Norris,
New
address
York
at
President
the Board:
Frank
Reynolds; President of Albert
Frank-Guenther Law, Inc. Presi¬
dent:
William
firm
of
Lamb
Charles
John
of
of
the
Lamb.
G.
Frank
G.
law
Vice-
Shattuck,
Shattuck
Co., (Schrafft's), Secretary-Treas¬
Maintaining A Balance
title
of
J.
President:
of
Railway Company,
the Bond Club of
'its * next luncheon
meeting to be held at the Bankers
Club on March 25. J. Taylor Fos¬
Portland, Maine, ter, President of the Bond Club,
will preside at the luncheon.
visiting in Wall Street.
to
Vice-Pres.
will
H. Patton Visiting N. Y.
(Special
GRAND
Rosenthal, Ladenburg,
the. Southern
New York Stock
Mr. Manney
M.
Ernest
1
^
King,
Broadway, « New
their trading de¬
partner
Specialists
year:
Paul
Thalmann &
.
.
with Snow &
York
from
&
nage
industry.
Boston & Maine
descriptive
a
Veron To
Dunne
Tele. NY 1-1610-11
Are
Bond
,
.
other than gasoline,
Y
<
•
with
,
have
time
In Armed Forces
:
;
,
competition. He said that over a
period of time trucks are going
to become poor risks for private
.
mated
!v
self-policing
a
-
1942
We
particulars regarding themselves, before
one
with the members.
a
Exchange
Broadway, New York
REAL
investment houses does not necessitate
than a nominal amount of capital.
ent
'
Co.'
' *
with
the capital.
..
.
'
;
« t,.
,
Cadet
Selection Board in New
usual refreshments, including the
Mr. McGinnis pointed out that
Including logs, piling, poles, spars
York.vyy y y.
oyster bar. The facilities of the
in 1939, the railroad industry as
and ties, but not including fin¬
Club such as bowling, swimming,
ished products; non-ferrous scrap
a
whole ^ did
a
gross
business
Dudley N. Schoales, Blyth &
cards, etc., will be available;to
amounting to $4,300,000,000 and
(copper and lead, including scrap
the members
Co., Inc., 14 Wall Street," New
at their own ex¬
that this year, they will probably
battery
plates); petroleum and
York
City, has left for Washing¬
pense. *'" V;
' \
Y.'.I
do a gross of $5,100,000,000.
He
petroleum products (crude petrol¬
Guests, $3.50;
no
charge
to said that railroads are the largest ton where he will be on the staff
eum, gasoline, liquidified petrol¬
of
the
Under-Secretary of the
members. '
eum gases, tractor distillates, and
private business in the country
Navy.
similar distillate type motor fuel
and still handle 80% of'all ton¬
freight
39
many
also be presented to and discussed
Following the meeting
Curb
York
are
f
Pittsburgh Bond Club
tion
Trust
_
Chicago Stock Exchange
;
The truth of the matter isi that the character of business
a
1967
Members
New
|■
conducted
their
Investment
Joseph McManus &
strength of its members would seem to indicate that they
are i falling for
the long exploded theory that money and
integrity are synonymous. This of course is defintely not
group of representatives of banks
PITTSBURGH, PA.—The
an¬ and other financial institutions in
effective date of the freight rate nual meeting of* the Bond Club Palm Beach, Florida,^Patrick B.
will be held on McGinnis of the New York Stock
Increases on ten commodity of Pittsburgh
March 26 at 7:00 p.m. at the Pitts¬ Exchange
firm ; of
Pflugfelder,
groups from March 18 to April 15,
1 94 2
(see
"Commercial
and burgh Athletic Association. Elec¬ Bampton & Rust, 61 Broadway,
.
\
quarters within the next few days.
petition of the Office of Price
Administration, dated March 11,
1942, seeking postponement of the
page
'
'
j
*-
1946
fact that the N.A.S.D. is going into the capital
The
/
f ("*< k; "
\y
4-6551
Thermit
&
DIgby 4-2290
|
*•' ''
v
Dept."
WHitehall
4»/2s,
they are told they must fill out an extensive questionnaire
their as they're now being asked to do?
v
commission
the
of
Securities
5s,
t
.
^ U
Just
ones,
Reynolds Realization
organization, as originally contended, why shouldn't their
quarters
in the Penn Athletic members, big and little alike; have some voice in deciding
Club
Building V on
Rittenhouse whether it is essential in the public interest that they supply
over
March
i
b. o.)
or
'
.
.
want in¬
you
dead
Common
installed in the commission's new
wall street
on
)
staff of the SEC has already been
New York
J
^
j
presided
A substantial
Telephone W hitehall 4-0650
mission
be
dent of the club.
Co.
Inc.
Member Los Angeles Stock
will
luncheon
by Arthur S. Burgess, Presi¬
over
halitosis
I.
commission,
TRADING MARKETS
DA PTCIP
Securities Com¬
the Pennsylvania
mission,
on
STREET, NEW YORK
Metal
,
loresgn
subscriptions
and
advertise¬
ments must he mad# In New York funds.
if
or
about
extensive
an
quote
a
;
Queries Its Members On
Everything Except Aunt Fanny
just
£fet
Lichtenstein's
WALL
N.A.S.D.
meet the
to
the
crime;
on
Obsolete
.
to
do2" whose very issuance
Telephone:
v-"'
Dealers, Inc. has
questionnaire to its members to
ascertain i their capital strength, practices pursued with
respect to handling customers' securities and cash, method
of confirming transactions, information regarding personnel,
ment agencies.
♦''
>
" •'
volume of business transacted, et cetera.
(This means just
Walter C. Miller, R. A. Cox and
about everything except whether or not Aunt Fanny has
J. Myron Honigman, members oi
munity
.
99
7'^
Teletype NY 1-5
or
a
formation
Spencer Trask & Co.
<
want
you
cat
a
was
for any group of
investment com¬
members of
commission, which has just
moved its headquarters to Phila¬
delphia from Washington, D. C. as
part of the war time measure for
decentralizing
Federal 'govern¬
<
"If
v
to
New York, N. Y., under the Act ol Mar.
1879,
AND COMPANY
MY DEAH WATSON"
Commission, will be guest
Published twice a week ievery Thurs¬ speaker. He will address the club
"Outlook for the Invest¬
day <general news and advertising issue) on the
;
wan a statistical issue on Monday]
ment Banking Business."
?
Other offices: Chicago—In chuige of
All members of the commission
Field
'
,?
Participating Units
Purcell, Chairman of the
Ganson
kmm
-
Washington Railway & Electric Co.
Thursday, March 19, 1942
Fred
1131
urer:
B. W. Pizzini of B. W. Piz-
zini & Co.
1132
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, March 19,
DIVIDEND NOTICES
AMERICAN
MANUFACTURING
Noble
and
The
Board
of
DETROIT
COMPANY
Canadian
Streets
West
Brooklyn,
York
New
Directors
of
.
.
the
American
LISTED AND UNLISTED
Securities
Manufacturing Company has declared the regu¬
quarterly dividend of $1.25 per share on
UTILITY PREFERREDS
lar
Preferred
the
Stock
and
dividend
a
of
50c
:per share on the Common Stock of the Com'pany.
Both payable April 1,
1942 to stock¬
holders of record Marcn 9,
1942.
The stock
books
•record
of
transfer
will
be" closed
stock
of
l"
Vs.•
April 9,
OP
NOTICE
•
•
Members
;•
Board
poration
[share
'the
par
.issued
:
April
i
on
and
HAnover
of
17, 1942.
Arundel Cor¬
The
25
declared
cents
An
SEIFERT, Secretary, v
■$'
I
YORK
quarterly
ishare)
dividend
,of
i The
bdoks
1,
New
York,
Stock
1942,
will
F.
($0.87Ms
the
of
March
on
not
17,
per
.
record
21,
1942.
close.
LITTLEJOHN,
March
of
Secretary
1942
-4
Jackson
1-1619
New
"Petroleum
of
booklet
Parade"
on
Ata.u*.mtorr,
regular meeting of the Board of
Directors, held in Palmyra, N. Y;, this
day, a dividend of 75p per share was
declared
the
on
stock of
common
has
of
the
Eastern
:
Oil
.The
booklet,
attractively illustrated,
discusses the place of oil in the
world of today, shows interesting
diagrams of oil wells, gives fables
crude
oil
production
Copies
and
be 'obtained
may
Tellier &
Company
de¬
from
request.
on
If
Exchange
Weekly Firm Changes
the
contemplate making additions to your personnel, please
particulars to the Editor of the Financial Chronicle for pub¬
lication in this column.
y-'V'; """...:ryy;y,':-:' ;;y:.y
(Special
to The
Financial
Chronicle)
(8peciai
weekly firm changes:
the close
of
business March 21, 1942.
announced
John F.
R. M. Waples,
Secretary
to The
the
231
South La Salle St.
'
.
has become associated
Securities
Corp.,
Salle Street.
V
'
Exchange, retired from partner¬
ship in R. L. Day & Co., Boston,
Mass., on March 12. Mr. Hughes
made
his
headquarters at the
and
South
Sutro Bros.
died
New York, N. Y.
March
March. 11,
on
Robert
17, 1942.
Goldberg, partner in
& Co., New York City,
MacDonald, Jr., partner
Co.* Philadelphia,
in MacDonald &
Morris & Co. Ltd. inc.
•
died
to The
Financial
Chronicle)
-
The SEC announced
'
John
—
that there
B.
March
on
Carter
companies, with
209
H.
Harrison
South
Sardy
La
&
Salle
Company,
Street.
Mr.
previously with Talcott, Potter & Co. and R. H. Smart
was
& Co.
(Special
to The
Financial
CHICAGO,
Duffy is
Chronicle)
ILL.—Francis
y v
X.
with Merrill Lynch,
now
Pierce, Fenner & Beane, Board of
Trade
Building.
Mr. Duffy was
formerly with Paine, Webber ...&
Co., and prior thereto with A. C.
Allyn & Co., Inc.
.
Parana
dividend
extra
an
holders of State of Parana
zil)
15,
L. G. HANSON, Treasurer.
V
7%
external
sinking
(Bra¬
fund
1958,
13.325% * of
the
1939.
yyy.,y :[y.;v
New York, March 10,
1942
DIVIDEND NO. 289
,
A dividend of 50 cents a share on the capital
of this company has been
declared, pay¬
able April 15,
1942, to stockholders of record
6tock
the close of
at
business
G.
K.
March
on
20,
HUNTINGTON,
15,
to
$4.66375 for each $35 coupon and
$2.331875 for each $17.50 coupon,
y THE WESTERN UNION
J:
TELEGRAPH CO.
■
1942.
Treasurer.
and is in full payment of all in¬
terest claims
Payment of the in¬
terest may be obtained at the cou¬
paying division of the bank,
Street, New York.
pon
11
Broad
In
accordance
with
this
pay¬
ment,
UNDERWOOD
The
ELLIOTT
Board
of
FISHER
Directors
at
March
12, 1942( declared
quarter of the year
first
COMPANY
meeting
a
dividend
a
held
for
the
1942 of 50c a share
Underwood
Elliott
Fisher Company,
payable March 31,
1942, to
stockholders of record at the close of business
March 23, 1942.
Transfer books will not be closed.
the
on
Common
-
v
•
Stock
C.
:
r
Salle
of
S.
DUNCAN.
Treasurer.
the New York Curb Ex¬
change's Committee on Security
Rulings rules that transactions in
the
bonds
shall
be
and
on
settled
after
Mar.
17
delivery of
bonds with the Mar. 15, 1932 to
Mar. 15, 1934, inclusive, and Mar.
15, 1940 and subsequent coupons
attached.
YORK
AND
HONDURAS
MINING
Seasonal Gains By Chains
COMPANY
NOTICE
Total
OF
The
Of
Annual
NEW
MEETING
Meeting
YORK
MINING
ANNUAL
of
the
Stockholders
HONDURAS
ROSARIO
AND
COMPANY
will
be
held
at
the
office
of
the
Company,
at
Rooms
1855-1859,
No.
Broadway, New York, N. Y., on Wednesday,
April
1st,
1942,
at
two
o'clock
P.
M..
to
consider and act upon the
following matters:
,1. The
election
of
ten
Directors
for
the
120
f
ensuing
year,
elected and
•
*
are
2. Continuing
y
■
•
Ernst
3. To
as
the
and
take
7
as
ing,
or
any
with
its
'upon
in
the
III
of
adding
respect
directors
forth
of
properly
may
&
to
in
the
certain
said
ruary
Store
such
come
adjournment
other
seasonal
review
with
For
the
books
purpose of the
of the Company
business
been
noon,
March
21st,
April 2nd, 1942.
BY
OF
.
.
_
.
,
Dated
„
1942,
ORDER
.
March
18,
OF
will
be
until
THE
BOARD
DIRECTORS
J-
PERLMAN,
Secretary.
1942.
Anderson
was
to The
and
Albion
added
the
to
have
Trenerry
staff
of
Se¬
(Special
to The
Financial
CHICAGO,
ILL. —Fred
M.
Walker has become affiliated with
Tax
Bond
Jackson
Company,
Boulevard.
141
West
Walker
formerly with Goven, Eddins
& Co. for a number of years and
in the past conducted
his own
:
V
to
'
The
figures
-
by
trade
Jan.,
Feb.,
1942
1941
,
Grocery
Chronicle)
CHICAGO, ILL.—Hilda B. Mil¬
ler has joined the staff of Thom¬
&
McKinnon, Board of Trade
Miss
Miller
for¬
was
159
(Special
to
The
DETROIT,
Financial
Chronicle)
MICH.—Ernest
S.
Thompson has become associated
with
Keane
&
Penobscot
Co.,
(Special
to The
Financial
DETROIT,
with
R.
C.
Penobscot
(Special
C.
Hum¬
with
O'Donnell
&
issues
91
in
Commission's
concerning
tinued:
the
Exchange
to The
DETROIT,
117
Donovan,
Drug
176
177
154
nected with
Shoe
208
223
156
&
Apparel
178
188
133
&
for
Financial
MICH.—Charles
some
years
539
issues
.
covering the
period
utility
which 225
tric
were
Curb
Exchange
St., St. Louis
UNLISTED
SECURITIES
ORDERS EXECUTED ON ANY EXCHANGE
OR
.
Central
4744
Bell Teletype
SL
■
Wall
the
475
Street, New York
entire
there
the
&
MARKET
:
Phone
period
seven-year
327
were
bond
-
issues
totaling $5,440,243,000.
During 1941 there
r
debenture
were
three
issues
$13,400,000
con¬
and
were
gas
amounting to
compared with
as
and
15
utility holding companies.
The analysis represents all is¬
of
securities
of
this
type
of debentures
aggregating $155,*
1939.
During the
period there were 42
debenture issues amounting to
$622,800,000. »
750,000
in
seven-year
companies, of
operating elec¬
utilities
were
sues
:•
seven-
offered by 240
:
-
There
also
were
offered
sues
25
note
is¬
during
1941,
$114,826,000, as
under both the Securities Act
of 1933 and the Public Utilities
amounting to
compared with 21 issues total¬
ing
$24,205,000
during
1940,
while the aggregate amount of
92 note issues during the seven-
Holding Company Act of 1935.
year
utility
companies
Commission
of
which
a
record
has
Of the 108 issues of securities
offered
during 1941, 61 were
bond issues,
aggregating $642,874,000, with an average coupon
of
to
3.40%
and
purchasers
an
average
of
3.15%.
period
amounting to $68,563,000 were
offered during 1941, while there
16 such issues aggregating
$51,441,000 in 1940 and 11 issues
in the sum of $55,644,000 in
$759,336,000,
stock
which
the
average coupon rate was 3.29%
the average yield to pur¬
and
were 3.05%.
Likewise,
1939, bond offerings totaled
47 issues, amounting to
$621,982,000, with an average coupon
rate of 3.63% and average yield
to purchasers of 3.45%. During
-
were
period
upon
$298,552,000.
was
Fifteen preferred stock issues
This compares with 43 issues of
bonds
in
1940," amounting to
1939.
During
68
the
seven-year
issues
of preferred
amounting to $344,407,000
offered.
were
The
rate of bond is¬
to 6.0%
coupon
varied from 2.5%
sues
the
Dec.
during
ending
period
seven-year
There
totaling
$1,688,490,000 on which the cou¬
pon rate was Slk%.
were
The
84
31,
bond
analysis
1941.
issues
was
prepared by
C. A. Turner, under the super¬
of John W. Houser, Di¬
vision
Railroad Bonds
Machine Tool Stocks
rector
of
Division.
the
Public
A copy
Utilities
of the report
may be obtained upon request
from the Publications Unit of
the
SEC., Philadelphia, Pa.
F. H.
(Special
Smith
With Otis
Chronicle)
to The Financial
DENVER,
COLO.—Frederic H.
Smith has become associated with
C.
Humphries, Angstrom
Co., is now with Wm. C. Roney
Co., Union Guardian Building.
Chicago Board of Trade
York
four such issues totaling $40,According to the analysis, the t: 750,000 in 1940 and eight issues
SECURITIES CO.
con¬
New
;
r
THOMPSON ROSS
Chronicle)
1887
York, St. Louis and Chicago
409 N. 8th
announce¬
study
Co.,
Building.
136
-
was
Underlying
Chronicle)
MICH.—James
formerly
and
SEC.
Building.
Mr.
Thompson
was
previously with Wright, Martin &
Co. and Goodbody & Co.
'
160
'
the
in
164
......
of
New
Stock Exchanges,
chasers
merly with Shields & Co.
167
Variety
The
ment
rate
Financial
Members
principal amount of $889,932,000.
yield
(Special
Division
aggregate
Mr.
was
business.
ESTABLISHED
total principal
a
utilities, amount¬
ing
to
$6,724,480,000
principal
amount.
In 1940, 86 security is¬
sues with
a
principal amount of
$881,247,000 were similarly ofr
the
Chronicle)
McGregor,
Feb.,.
Stock
A. G. EDWARDS & SONS
electric and gas
of
phries, Angstrom & Co. and Wm.
C. Roney & Co., is now connected
groups are:
Louis
says
separate
1931 average for the month taken
as 100.
index
St.
utility
the Commission, brings
the total for the seven years end¬
ing Dec. 31, 1941, to 539 issues of
Chronicle)
Financial
January, and
with 128 in February, 1941. These
figures are relative to the 1929-
trans¬
closed from
ten
A.
M.,
Mr.
This,
South La
lected Investments Co., 135 South
La Salle Street.
in
1942
the
"Chain
proxy
before the meetor
adjournments
meeting,
issued by
164
Thompson
Co., 39
CHICAGO, ILL.—Samuel New¬
man
Feb¬
The composite sales index, reg¬
ularly compiled by that publica¬
tion, was 165 in February, com¬
pared
with
now
Street.
(Special
showed
in
Age."
thereof.
I
fer
sales
gain
this year, according to the
current
The
statement;
4. The transaction
3
action
amendment
of
Article
of
the Company,
by
Section
indemnification of
instances
as
set
j
successors
By-laws
thereto
y
their
qualified;
the employment of Ernst
Company's auditors;
the
consider
propos'ed
until
or
chain store
moderate
-
STOCKHOLDERS'
is
Securities
Building.
ROSARIO
7
se¬
amount
of
$843,656,000,
either
publicly offered or privately sold
during
1941,
according
to
an
analysis prepared by the Public
year
son
NEW
Chronicle)
by
FINANCIAL NOTICE
.
Financial
previously with J. H. Beall & Co.,
Ryan-Nichols & Co., Carley &
Co. and Webber, Darch & Co.
face
of coupons due Sept.
The payment amounts
amount
yi' ■:
derson
Ross
consolidated gold bonds due Mar.
March 27, 1942.
.
announces
that it has received, as special
agent, funds with which to pay
of 75< per share
of $2.00 per
share on the Common Stock» payable
'"April 15, 1942 to Common Stockholders
I of Record at the close of business on
lar quarterly dividend
and
7% Bond Payment
Chase National Bank
April 15, 1942.
There also has been declared a regu¬
•
to The
of
fered or sold by this class of util¬
ity companies, while in 1939 the
9.
CHICAGO, ILL.—Ivan G. An¬
on
ness
Mar.
on
issues
Sardy has become connected with
A regular quarterly
'
108
were
curities of electric and gas
(Special
dividend of $1.06 V*
per share on the Cumulative Preferred
•Stock, 4V4%, Series, has been declared
payable May 1.1942 to Preferred Stock¬
holders of Record at the close of busi-
v.,:.;..
La
•
„
Members
'
retired
Samuel N.
v* *
Thompson Russ Securities Co.
Utilities
Falconer
from partnership in L. S. Kerr &
Co. as of March 2. y
PHILIP MORRIS"
509 olive st.
,
CHICAGO, : ILL.
Hughes, member of the
Alexander
"Call
Chronicle)
Building. Mr. > Renehan was for¬
merly with Harper Wegusen &
with Blair
135
Co.
SAINT LOUIS
SEC Utility Analysis
(Special
following
firm's New York office.
si
Financial
Stix,
CHICAGO, ILL.—Herman Wise,
GRAND RAPIDS, MICH.—Ray¬
formerly with Wise Investments, mond II. Renehan has become af¬
Inc., has been added to the staff filiated, with McDonald, Moore &
of Assessment Bond Service, Inc.,
Hayes, Michigan* National Bank
The New York Stock Exchange
stockholders
at
MICH.
you
send in
CHICAGO, ILL.—John N. Faust Yonkman, J. VanderMoere & Co.
N. Y. Stock
has
record
DETROIT,
been
Royalty Dealers Association.
Company, payable March 31, 1942, to
of
Exchange
ST. LOUIS
fl
a
Stock
BUILDING
"The
—
COMMON DIVIDEND No. 263
At
Detroit
?
March 17, 1942
R
of
PENOBSCOT
:
York
scribes what oil royalties are./
-Packing Company
Curtis
&
entitled
Civilization"
members *
of
The Garlock
NY
compiled by Tellier & Company,
42
Broadway,'New1 York: City,
Company,
to stockholders
business
HARRY
];■
3V2%
of
Capital
payable April
| at the close
transfer
COMPANY
t
the
on
TRUST
100 < Broadway ,
*
trustees has this day -declared
*
'Board of
The
[a
-
NEW
THE
■
Tele.
attractive
March
1
2-7673
"Petroleum On Parade"
1942.
JOSEPH N.
'.&•
Charles A. Parcells & Co.
Members
;; •;
1942,
to the stockholders of record
Corporation's
books
at
the
close of
1,
the
SECURITIES
Exchange
York, N. Y.
Toronto
per
quarterly dividend on
value
stock of
the
Corporation
outstanding payable on and after
j business March 23,
Funds
Stock
Broad St., New
41
Md.
Directors
has this day
the Tegular
as
no
of
Toronto
,
March
The
S.
CORPORATION
Baltimore,
«
'■
U.
in
F.W. Macdonald&Co.
BROWN, Treasurer.
ARUNDEL
v
purpose
to
Traded
.
B.
DIVIDEND
-VTHE
.«>■
the
10
■<
-
ROBERT
•
for
March
from
4942.
1942
39 S. La Salle Street
CHICAGO
Otis & Co., First National Bank
Building. Mr. Smith was formerly
Vice-President of Ver Hulst & Co.,
Inc.....^
•'
;
.
.
'
.
.
._
Volume 155
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4056
Guaranteed
tomorrow's Markets
Old
Railroad
Bought
Brown Co.
"
J^cwYirk Stick Bxckittp
Memken
I
Tel. REctor
61
Broadway
Bell
Teletype. NY 1-1158
3%s, 1956-73
BART SMITH & CO.
New York
"
;
railroad
Bell Teletype—NY 1-310
reorganization securities
|52 WILLIAM ST., N. Y.
Bell
; >v
The
Securities
and
Exchange
,'{
known
as
F,orm, 3-R,. to; be used
*
SEABOARD AIR LINE
.
firm formed as the successor
registered investment adviser.
Explaining this - action the Com¬
by
v
In recent
t
years we,
have come to accept vacillftfions ol.Goyern:
ment
agencies
there
was
eral Mac Arthur in Australia, mission" said;
matter of course, but even, at that
week when the Office of Price
a, plea
for reconsideration. of
some
and
Even the stock market got a
bit of a lift from it and rallied
presumably eventually'all,- of the freight rate increases;
permits any person
who takes over 'substantially all
of the' assets of a registered iri-
almost before the ink had had time to dry on the ICC order granting
such increases
Before granting^
vestment adviSer and continues
were
the
investment
been asked for and far from suf¬
incorporate by refer¬
ficient to. offset the 1941 wage in¬
information
creases) the Commission had held
to
is the arrival of Gen¬
a
a
Form 3-R
4
But if you dis¬
>
:
read in daily
newspapers and on news tick¬
ers is hardly
anything to go
around grinning about.
business
adviser to
;
all
ence
we
;
as' an
of
the
originally supplied by the registered* investment a d v i Se r
whose
over,
assets
;
thus
are
taken
supplemented by, an^ in¬
pertinent to
more or
less
as
a
lengthy
hearings
during
It
is
that
claimed
at
v-<
•
■
'i
*
'.
'■ ;•'
...
it.
-„
*
Another
I «""*'y-' "
•!51'
•
.
1"
the
,
argument, this one
minded, is
the local
for the technical
that
101
Centre
Street.
In
the
low
*
April 15 the effective date of in¬
creases
Where
on
a
list
- -
•' ;
•;
--*
»/
-
•
-
•>' y.
•'.'
..%*
>
.
over-discount
clines "tend to
coming news and in any case,
the market is oversold.
tories,
Then
XXXX
$
j All these
w$;^pine to this the¬
that the/speculative low
ory,
perfectly ducky
priced stocks,make their lows
reasons, as reasons go.
The first, and
having: done that, it
trouble is that they don't ex¬
means that, h
piarket rally is
plain a tiling. :
not far ahead.
Sounds good,
if "are
•
-■-*
'..
■
.
The:
;
S.
*V»,
1
„
war news
'
..
doesn't it?*
'
■)
is still bad?
Taxes will be heavy ?
."'tv:
More
Take
a
look at your own ex¬
regulations? Of course, every¬ perienceNobody ~ likes tak¬
body knows that. But the
ing losses. If a person- holds
market doesn't go down! Does
two stocks and -is Worried,- he
not
that prove something?
will most likely sell the
good
Sure, it proves that markets,
stock,;
the:
one ■ that ;shows a
like' humans, can* stand just
prpfit He will bold on • to thd
so much news, good or bad.
low
After,
a
while it becomes
sur¬
priced speculation nurs-r
ing his loss in the belief that
feited, and further
news, un¬
it must-come back.
less
leaves
that
,
'
outstanding,
it
the
:
There's
a
n
Iff-**
.
procedure
f
York
Stock
Exchange
-
/
Chicago
The
able
improve their
to
operating
they have
been getting a long average haul
on
freight formerly transported
by > intercoastal steamships, and
because a large proportion of the
results largely because
has
represented
westbound : materials.: Normally
there is a heavy empty car move¬
traffic
rise : in
west, and hauling the rev¬
enue-producing loaded, cars in¬
volves relatively, little added ex¬
ment
pense.
;
•
should
unfavorable
aspects
We have prepared
study
a
indicates
a
actually it would
outlining the prospects of
;
appar-!
determination!
that railroads shall not be allowed!
to increase their earning power]
ently
in
mean
a
decline
earning power in line With the
heavier tax burden that must b<
Central R.R: of N. J.
and
discussing current and
tential
values
of
its
assumed by all corporations. Th<
OPA has expressed the opinion!
po¬
securities.
Copies Available
that, in addition to specific com¬
modities for which
exemption,has
been asked immediately, if earn¬
ings - continue up
(presumable
Request
on
meaning that if these other roads
their
freight rate
declines) all of thq
increases' should be
Repealed.
;
can erase
LEROY A. STRASBUR6ER &
1
WALL
•••■';'.':l.: (i
NEW YORK
ST.,
3-S46S
WHltehall
CO.'
Teletype:
,
1-2050
NY
picture
higher > earnings
ferrous scrap,
pig iron, and crude
sulphur. Application of these ex¬
emptions would be more general
throughout-the industry, although
the ; scrap metals would be more
important to the eastern industrial
properties than elsewhere.
It is
also, probable that the industrial
roads would be
more
affected by
of
ume
petroleum and products.
That the eastern roads
ford to miss
of
even
ill af¬
can
single dollar
a
their proposed freight rate in¬
seems
apparent from a
th^
Any; one at all familiar with
railroad
to tanker sinkings roads in vir¬
tually. all sections of the country
have been hauling a record vol¬
These roads have been
increases.
most
of the OPA policy is that it
would ordinarily be the case. Due
freight rate
Central—33.1%
Y., Chic. & St. Louis—U—
N.
Pennsylvania13;3 %
Pere Marquette —39.3%
Reading
25.5 %
Wabash ——92.9%
York
without benefit of the
is,
,
allow, the
are
carriers
that
aware
tq
necessary
to
the
meet
equipment needs of the armament
boom and retire their debt."
The
latter is highly important if many
of the marginal properties
jare to
retain their solvency in the post¬
war era.
It is to be hoped thait the
ICC will hold to its original stand,
with respect to the freight rate
increases arid that: railroad
man¬
agement will display a greater de¬
gree. of .resolution than it has in
the
There certainly is.
past:
fairness
in
the, stand
hard-pressed
shoulder
carriers
that
s
no
the
hodid
disproportionate share
of the inflationary cycle,
stemming
originally from wage increases.,;:
a
crease
study of typical January reports.
The
the
shows
tabulation
following
percentage year-to-year
cline in January net
cortie
for
a
de¬
operating in-
number of
industrial
Defaulted RR Bond Index
The defaulted railroad bond in¬
dex
of ;Pflugfelder,-Bariipton 8c
Rust, 61 Broadway, New York
City, shows the following range
for Jan. 1, 1939, to date: High-r-
38%,^ low—14%, last—38%.:
and coal roads:
r
•However, any claim that the in¬
in earnings-represent un¬
creases
profits
justified
wan.; conditions
extracted
seems.
from
untenable
section
the largest
of .the reorganization
encompasses
proportion
are
in the
.
■I..:.
M 'j'i
/,i
U'J- 'J J
C
J
,V
Producing
6s, 1935
Bonds
& Certificates
Oil Royalties
Georgia & Alabama
1st
dividend paying cater
gory,
We Bpecicdize in
Seaboard-All Florida
when'one considers-that this same
"and it' is -also in this section
ing to do with the; case. That's of the country that the Govern¬
ment derives most of its. benefits
femember your college psy¬ the
way things are., The rreT frOhi low^ land
-grant -rates.
chology you. know the scien-1 "suit is that the lower
priced
Other commodities included in
tific explanation. If you don't
stocks
are
not the first' to the OPA- request for postpone¬
.;
, .
•
I' frt \
• K », '
r I
%
ment include1 cement; copper and
tememberif; .it; doesn't niake make .bottoms - on
/major 'de^ lekd' "ores and-ooncentrates, iron
;, (Continued on .Pag^\lH0)„
ai^ldiffereucer^ ■. ->•: and.steel scrap, rubber scrap,.non-1
.
New
tinued: to show wide improvement
e^nm^/hasre
of the country. Relatively
T,he fac fc mileage
few of tke roads in this section
sound: psycho¬
have been reversed has noth¬
logical reason for this. If you
cold.
Members
New
con¬
fbads^rw|ibse'
what?:c->
•;
*
':X'X i
or
63.3%.
-u—
Nashvilie_l---—5.6 %
New York
Bear, Stearns & Co.
the exemption of petroleum prod¬
ucts under present conditions than
defeats, new?/vic¬
7.3 %
Lehigh Valley
Louisville to
commodities
of
Decline
Erie-.
the price
structure is ex¬
tremely sensitive.
During
this
period the OPA hopes to persuade
the railroads to exempt" the speci¬
:
&
Ohlo_-»__>v—13.3%
Chesapeake to Ohio_w^—
19.8 %
Del., Lack. & Western--—39.7%
Issued)
time
priced stocks have past Mr. Hampford operated his
own investment business in Potts¬
made
their; lows and as
ville.-:
t
/'everybody" knows/that it is
fied commodities from the 6% in¬
these low priced issues that
U Now we come to this busir crease. The commodities covered
actually point to a turn in the ness
of, discounting further include petroleum and petroleum
speculative tide the' answer,
"products, and lumber and lumber
developments.
Here is a mar¬ products, excluding finished lum¬
lo hear them tell it; is obvious.
ket trying to gauge factors it ber products. These are the most
/Eureka!- The iuarket is now
never even
thought about be^ important items in the list and
going- •upl:/;--:-;f> / r/;
their exclusion would fall most
fore,- and not doing so badly
V
-'4. rv;- %
"
•••'
heavily on the western roadk
either, and people speak
By a coincidence, the commod¬
/ Stiil.another favorite chest¬
glibly about7discounting: Dis¬ ities which are. "extremely sensi¬
nut being tossed around to¬
counting '^hatf'v/ipfWjsffiecl' tive'' as to price structure are of
day, is that long market de¬ war, new:
major importance largely to the
;
(When
i
Baltimore
•
with John E. Pepper of
office of Reynolds & Co.,
North
Securities
of the hearings the rate
'
street' g,
'NEW YORK
Reorganization
.
-POTTSVILLE, PA. — James J.
Briefly, the OPA has asked the
Hampford has, been appointed co- ICC to
postpone from March 18 to
manager
;| Railroad
the
.
,
sixty wall
:■
which
the OPA had failed to oppose
increases.
trends.
mean
t
Van Tuyl & Abbe
(incidentally they
considerably less than had
•
'
.
Underlying Mortgage Bonds
?■
,
the "increases
increases
the successor firm alone. As a appeared justified but that devel¬
Yet the picture of a market
result of this procedure, succes- opments in the interim (specific¬
that has apparently stopped
sors
to, Registered ; investment ally earnings increases in Jan¬
advisers will not be required to uary) had altered the picture. The
going down in the face of the
file a completely new applica¬ rise in net operating income of
continued bad news, has
11% in the opening month of the
tion for registration as an in¬
brought out strange theories,
year would hardly seem a valid
vestment adviser.
;.
all aimed to justify any near¬
against
the
modest
argument
Copies of the new form are
by market predictions. ; The available at the Main Office and freight rate increase granted, nor
would the "inflationary" aspects
most ;c o m m o n
statement at each of the Regional Offices of
of an estimated increase of $203,s
heard, is that all the bad news the Commission.
000,000 in the country's annual
has been discounted and a
railroad
freight -t transportation
rally is now inevitable. Well, Hampf ofd Co-Manager Of : bill seeih important in comparison
with general wage and commodity
maybe they don't say "in¬
Reynolds/In Pottsville
formation Which is
RAILWAY COMPANY
considerable surprise last
Administration came forward with
'
regard the :• morale building
effect of such news, the rest
evitable," but they
Toronto
'
big headline news', of
things
1-S95
Montreal
Adopts New Form For
*
of the
HAnover 2-0981
Teletype NY
New York
Commission announces the adop¬
tion
of a
form
of application,
.
from the lows.
& 4y2s
York Stock Exchange
^
Telephone—DIgby 4-4933
4^8
1946-50
(City)
Successor Inv. Adv. Firm
possibility present; however|
it depends on factors now
{unknown.
/
/
:
\ \
By WALTER WHYTE
Member* New
.
NEW YORK
rally about over*
Don't follow widespread bef
lief that present market dis¬
counts coming news.
Rally SEC
5 yz s,
&
Montreal Lt., Ht. & Pr.
PFLUGFELDER, BAMPTON & RUST
Dealers in 1
louanAKimJ
Mac Arthur
course,
1959
Montreal
3o$cpbCUalker$Sons
^
120 Broadway
The
Sold
—
58,
Says— WMX
I
Colony Bonds
Stocks
Walter Whyte
1133
Bend for
5s, 1945
Bonds to Certificates
Bought—Sold—Quoted
teluer & company
co.
Member*
Eastern Oil Royalty hitler* Ass's.
specialists, in rails
n.Y*c*
HAnover 2-9175
V'* i.
r:
booklet
f
1. h. roihehild &
II wall street
our new
"PETROLEUM ON PARADE"
:
Tele. NY 1-1293
42
Broadway
BOwlinr Green 9-7947
.
New York City
Teletype NY 1-1111
i :
lu-'k
mk?
THE COMMERCIAL & FINANCIAL CHRONICLE
1134
Bank and
;
This Week
subjected to their share of
'
'
'
recommendations, the normal tax rate
would be kept at 24%, but the surtax rate would be increased from
7% to 31%.
Method of figuring excess profits tax would also re¬
main the same, companies con-<$>:
■ ..
tinuing to have the invested cap¬
Corn Exchange Nat'l Bk. & Tr. Co.
ital- or average earnings alterna¬
tive and exemption credit being
Fidelity-Phila. Trust Co.
kept at 8% on the first $5,000,000
First National Bank
of invested capital and 7% on bal¬
the
Members
120
.
or 95% of 1936-1939 aver¬
earnings, plus $5,000. Excess
profits rates would be stepped
up to minimum of 50% and top of
75%.
of
85%
3-6s,
on
tified
If this equitable pro¬
therefore, inr
surance companies and other in¬
stitutional investors deriving sub¬
apparent than real,
inasmuch as corporate
dividends
in
1942,
after
the
heavier
taxes
proposed,
would
probably be substantially reduced
net
lower
directly reflected
avail¬
This would be
investment
in
2-2280
Exchange
of
will
be
:
.
Burlington Gardens, W. / j
64 New Bond Street, W.
TOTAL
Co., Pittsburgh.
Edward
Hilliard, J. J. B. Hilliard &
I
ASSETS
£98,263,226
•
mittee,
three
Committee — Five
Nominating Com¬
of
whom
snail
v
Associated Banks:
«
Williams
be
Deacon's
■
Bank,
Ltd.
Glyn Mills & Co.
members and two of whom shall
and
be
allied
members
of
the
Ex¬
change:
Carroll S. Bayne, Luke,
Banks & Weeks; Marshal Booker,
Corlies
&
Booker;
Raymond
Chauncey, Chauncey & Co.; J.
Dudley Clark, Jr., H. C. Wainwright & Co.; William V. Couch-
mem¬
May 11.
on
nominees
Smilhficld, E. C. /
Charing Cross, S. W. I
Ex¬
The
posted
Australia and New Zealand
banFof
new south wales
man, Cohu & Torrey; Hartley C.
(ESTABLISHED 1817)
Davidson, Henderson, Harrison &
Paid-Up Capital
£8,780,000
Co.; Edward J. Duffy, Jr., Kean,
.v.
Reserve
Fund'
6,150,000 '
smaller
statutory
underwriting
Latest suggestions received fol¬ Taylor & Co.;-Hurlbert C; El¬
Reserve Liability of Prop.
8,780,000 i
profits.
f:'/-.
>'
low: :> ^y^;-;v
V'
A\ "1" £23,710,000
;...•"j- vfv more, H. N. Whitney, Goadby &
[ Bond interest, of course, comes
Co.; Charles S. Garland, Alex.
Chairman: Robert P.
Aggregate
Assets
30th
before taxes on net
income in
Boylan, at Brown & Sons, Baltimore; Paul
Sept., 1941
£150,939,354
E. F. Hutton & Co., and
Raymond V. Hall, Sutro Bros. & Co.; John
corporate accounting, and so those
SIR ALFRED DAVIDSON, K.B.E.,
insurance companies maintaining Sprague, • Raymond
Sprague
& C. Henderson, Charles F. Hender¬
General Manager
Go.
William K. Beckers, Spencer
a
large proportion of their in¬
son & Sons; Stephen A. Koshland,
Head Office: George Street, SYDNEY
Trask & Co. and Joseph
vested
assets
in
bonds
would
Klingen- Carl- M. Loeb, Rhoades & Co.;
probably show much better stabil¬ stein, Wertheim & Co., have with¬ Arthur H. Lamborn, Lamborn,
The Bank of New South Wales is the oldest
drawn their names.
and largest bank in Australasia.
With over
ity of investment income than
Troup & Co.; Charles C.\ Lee,
870 branches in all States of Australia, la
Three
Governors who shall be George D. B. Bonbright &
those companies having a larger
Co.;
New Zealand, Fiji, Papua and New Guinea,
members
of
the
position in stocks. In fact, as the
and
Exchange resid¬ William P. Marseilles, Jr., SeaLondon, it offers the most complete
and efficient banking service to investors,
substantial
upturn in premium ing-and having their principal songood & Haas; Paul V. Mravlag,
traders and
travellers Interested in these
volume continues to bring in a places ' of
business
within
the W; W. Lanahan & Co.; Esmonde
countries.
"'-yj „/.•.!.•••
:. Y
large volume of premium money, Metropolitan area of the city of F. O'Brien, E. F. O'Brien & Co.;
LONDON OFFICES:
investment of this new increment New York: Charles K. Dickson, Joseph G. Osborne, Hay den, Stone
29 Threadneedle Street, E. C.
of funds even in Governments of Auchincloss, Parker & Redpath; & Co.; Henry Picoli, F. H. Doug¬
47 Berkeley Square, W. 1
low return would help to offset Donald J. Hardenbrook, at E. F. las &
yi. Agency arrangements with Banks
Co.; Martin J. Quinn, Jr.,
throughout the U. S. A.
the probable reduction in income Hutton & Co.; Jerome Lowine, H. E. C. Benedict & Co.; Charles A.
Hentz &
from stocks.
K
Co.; Jerome W Nam- Sulzbacher, L. F. Rothschild &
For the past several ^ears, but mack, at Struthers & Dean,' and Co.;' John T. Terry, Jr.„ -Wood,
John B. Shethar, -at
Wellington & Walker & Co., and Robert F. Accept Posts In N. Y. Fund
particularly in the last two years,
Co.
John A.. Cissel, F. P. Ristine
John W. Hanes, former Under
Whitmer, Jr., Mitchel,- Whitmer,
fire companies have been increas¬
&
i
Co.; Robert J. Hamershlag, Watts & Co.
Secretary of .the h Treasury and
ing their ratio of cash and bonds
as
.Allied Member—Ernest O. Dor- Chairman of the 1942 Campaign
against their ratio of stocks. Hamershlag,' Borg & Co.; William
A. Pidgeon, Jackson &
Curtis, and britz, Moore, Leonard & Lynch, of the Greater New York Fund,
Some fire companies, indeed, as
Jacob C. Stone, Asiel &
has announced that W. Palen Con¬
Co., have Pittsburgh.
for example in the Corroon and
Richard
Pigeon,
withdrawn their names.
Estabrook & Co., has withdrawn way, Chairman of the Board of
Reynolds Group, have undergone
Three Governors who shall be his name from, consideration as the Guaranty Trust Co. and Fred¬
basic transformation from "stock
erick M. Warburg, a partner in the
investors"
to
"bond
investors." allied members or non-members trustee of the Gratuity Fund.
investment banking firm of Kuhn,
There is therefore much greater residing and having their prin¬
Loeb & Co., have accepted vicestability in investment income of cipal places of business within
the Metropolitan area of the
fire
city Simpson Co. Again Active chairmanships in this year's or¬
Teletype PH
April
on
257
13,
A net total of 82
have been suggested at the
t
■
■
more
the
of the
the
&
Nominating
election
slate
of
member
members of the
bers and partners for the
positions
to be filled at the annual
Phone
r
Son, Louisville, has withdrawn.
names
receiving suggestions from
a
■
however,
of
-
third
be
8 West
■
both normal tax and surtax.
able for dividends.
the
OFFICES:
Bishopsgate, E. C. 2
49
'
would apparently
have an important tax advantage,
because the 85% credit applies to
because
HAnover
at
3
Scotland
„
holdings
This is
York
additional
received
LONDON
Co., Buffalo; Nathan K. Parker,
|Kay, Richards & Co., Pittsburgh,
and Ledlie W. Young, A. E. MasH.
throughout
limited
change: A. P. Dann, J C. Dann &
-J
OFFICE—Edinburgh
,
from
income
HEAD
Branches
three meetings.
the heavy taxes at the
dividend
Incorporated by Royal Charter 1727
of
shall
NYSE Committee Gets
names
paying end.
stantial
city
j
final meeting of the
Nominating
Committee held for the
purpose of
Co.
Philadelphia
New
1477
i:
vision is continued,
stock
Street,
Phone
Locust
the receiving end is jus¬
by
Chestnut
1421
Phila.
Exchange
ten
Thirty-nine
Pfd.
&
Stock
Teletype—NY 1-1248-49
>
(L. A. Gibbs, Manager
Trading Department)
were
<
H. N. NASH & CO.
(net income after deduction of
tax-exempt income) for corporate
dividends.
This credit for divi¬
dends
2039
York
Telephone: BArclay 7-3500
Lives etc.
Phila. Transportation
is the credit of up to
"adjusted net income''
changed,
on
New
More Nominations
Philadelphia National Bank
-v.-
:
..
Royal Bank of Scotland
firms
BROADWAY, NEW YORK CITY
Girard Trust Co.
Also, not mentioned and there¬
fore presumed to
be kept un¬
the
of
j
or
Bell
age
Penna. Co. for Ins.
area
York, who shall be general
partners in member
engaged in a business in¬
volving direct contact with the
public, of whom not less than one
all
Laird, Bissell & Meeds
Treasury's
ance,
Metropolitan
Unlisted Issues
examination
Under
or
re¬
places of business outside of the
Inquiries invited in
markets to the Treasury's proposed
taxes, insurance stocks have been
from the tax standpoint.
new
members
Exchange
or
Thursday, March 19, 1942
New
-
In the reaction of the security
allied
non-members of the
siding and having their principal
Stocks
Insurance Stocks
—
Gayer G. Dominick, Dominick &
Dominick, has withdrawn.
Three Governors who shall be
members
Insurance
v
income of fire and casualty insur¬
,
companies,
and
therefore
possibly lead to reduced
dividends by the insurance com¬
ance
would
panies in turn, in adhering to the
conservative practice of limiting
dividends
to
within
the
net
in¬
vestment income alone.
Fortunately, various companies
provided for flexible divi¬
,
have
scales.
dend
Back
1935
in
and
1936, when the substantial under¬
writing earnings of fire compan¬
ies and good recovery in invest¬
ment income to the 1937 peak jus¬
tified
larger
dividends,
companies," Casualty
various
ally carried a higher ratio in cash
bonds than in stocks, and so
rather than increasing
the regular rate under reasonable
conditions, while at the same time
they could adjust the scale of ex¬
unward
or
downward
as
Thus
shown
basic
dividends.
borg, Hallgarten & Co.; Hamilton
PelL Pell & Co., and Radcliffe
Swinnerton, R. Swiniierton & Co.
like
surtax
ter
maintained
aided
.
other
subject to
companies but
they would have the bet¬
interest income,
at least
far, the scale of extras has
as
good stability as the
regular
rates,
but
the
by the inflow of new pre¬
with which to ab¬
heavier burden of corporate taxes
mium
for 1942
sorb the heavier taxes.
might result in lower in¬
vestment
income
to
the
point
where extras would be subject to
ber
public: William J. Hammerslough,
Lehman Bros.; John M.
Hancock,
The "bond investors" of course,
cessary.
or
particularly well prepared in
times of
rising
taxes
to
maintain investment income and
will find their earnings
ne¬
York, who shall be gen¬
limited partners in mem¬
firms engaged in a business
eral
involving direct contact with the
these
money,
7
\ .,.V .■ ^
DENVER, COLO.—B. E, Simp¬ ganization.
Mr. Hanes succeeded James A,
and Company announces the
re-openingof the firm as
of Farley, former Postmaster Gen¬
March 9.
Offices will be located eral, under whose chairmanship
at 41661
California
Street.
The in 1941 the Fund raised $4,250,000
firm
was
originally formed in which was $500,000 more than it
1929 to deal in over-the-counter had collected in any of the three
securities, specializing in a broker previous years of its life.:
;
-
of New
and
are
regular. • By so doing they could
relatively assure continuance of
tras
com¬
panies,- because of the necessities
of their business, have tradition¬
companies wisely decided to set
up a system of extra dividends in
addition to the basic reglar divi¬
dend rate,
■
Lehman Bros.; Leonard D.
son
New-
dealer "service.
Bryan
E.
Simpson is proprietor of the firm.
and
The Fund's
campaign starts on
March 23 with
a
breakfast in the
It will make its an¬
Hotel Astor.
ernment to disturb the regulation nual appeal to business firms and
policy of adequate rates, which employee groups on behalf of 400
welfare., and
health
protects - reasonable underwriting voluntary
gains and assures strengthening of agencies that share in the money
raised. Through one yearly con¬
capital ratios.
back all other gains, both operat¬
ing and capital gains.
•<
Chief source of ploughed back
operating earnings is underwrit¬
ing, which is therefore extremely
important to keep "in the black"
tribution to the Fund business has
*
- also
for insurance
Continuing our coverage of the
an
opportunity to do its part in
dividends is the absence at this time of rising taxes, vul¬ 1941 operating results of insur¬
reduction.
*
helping
to
support
community
of necessity of building up capital nerable investment
income and ance stocks of general market in¬
welfare.
I
Also, for 1942 companies whose funds to the point of its being a mounting volume of underwrit¬ terest, tabulated below are statis¬
A previous item on the Fund's
"statutory" (earned) underwrit¬ factor in forcing dividend reduc¬ ing losses and underwritten risks. tics on 20 more fife and 7 casualty
campaign appeared in these col¬
The ratios of Nothing should be done by Gov- <- stocks:
ing profits are swelled by the re¬ tions, as in banks.
umns of March 12, page 1054.
lease
of
earned
policyholders' surplus to assets
premiums
on
•Oper. EarningsPrem.Wol.
Inv. Income Annual
lowered
motor
vehicle
Liq. Vqlue
Und'g Gain
volume, and policyholders' fiduciary funds
.
Fortunately
company
-
.
.
r
would have
ject
to
rates,
based
as
have
larger earnings sub¬
taxation at the higher
compared to 1941 taxes
on
lower
tax
rates
and
been
kept-at
conservative
figures by the long standing pol¬
icy of limiting dividends to in¬
vestment
income
and
ploughing
Fire—
Gain
.
12-31-40
12-31-41
1941
1940
1941
1940
$1.28
$1.20
15.48
0.52
0.44
0.63
0.63
(26.26
; 26.73
0.89
—3.55
2.01
2.12
621.08
672.36,,
9.91
10.16
30.83
30.01
2 L00
,,79.62t —0.74
t!2.00
0.51
1.95
4.06
3.69
2.50
*
Div.
HomeK_
Amer..
(Newark)
Amer.
Reserve
—43.0
$21.67
17.4
14.99
3.0 ;-
____
Boston.
14.6
Fire
16.5
Assoc.
-y
$22.93 —$0.37 —$2.36
•
,
72.88
Firemen's
11.4
til.58
Glens
Falls
24.3
333.18
Globe
&
33.9
*16.66
0.23
0~60
0.24
0.40
1.31
1.03
0.87
11.80
—1.85
*2.34
*1.65
0.17
*
Rutgers
Com—
Hanover
Ins.
Ins. Stocks Attractive
A
Amer.
Co.
of
N.
Monarch Fire
19.3
26.30
A.
16.0
71.29
—
—5.3
9.89
,
335.41
*22.08
'1.66 '
•
—3.72
28.43
0.08
9.91
0.35
1.41
1.39
1.32
1.29
3.61
3.38
—0.41
—0.45
0.44
0.33
73.97
!
-
1.20
3.00
An: interesting
Stocks
as
and -attractive
"Insurance
entitled
brochure
Investments,'' has been
prepared by * F. LPutnam &
Company, Inc., 77 Franklin Street,
Boston, Mass. The position of in¬
surance as "the very
cornerstone
*
INSURANCE
STOCKS
Mackubin, Legg & Company
:
.
,
Established
Telephone—Plaza 9260
Teletype—BA 288
„
i 47.93 ' —0.71
45.11
10.7
0.46
-
2.14
1.96
L80
21.59
22.61
7. 0.27
(0.38
1.15
1.06
1.00
11.0
157.90
156.42
3.06
2.26
8.14
7.27
5.00
Phoenix
13.3
190.23
94.38
1.06
0.85
3.16
3.13
3.00
Prov.
16.8
36.41
38.07
1.16
1.40
1.80
1.72
1.40
0.09
0.37
0.34
0.30
River
,
_
Washington
Reins. Corp.
Republic (Texas)
U.
S.
Fire
Westchester
29.0
<17-1.-..
20.5
Fire
8.04
6.61
76.1
-
32.39
32.71
51.01:
53.04
30.82 '
32.51'
,
—0.35
1.16.
•
-
0.47
1.31
1.29
.1.20
1.35
2.51
2.50
2.00
1.58
-1.67
1.60
1.60
0.76
.1.23
-
_
Casualty—
*
Amer.
Gen.
NEW YORK
(
Hampshire
24.5
18!)9
Members New York Stock Exchange
BALTIMORE
New
Northwestern Natl
North
,
WHitehall 3-9030
NY
1-563
Md.
S.
25.6
Boiler
,
49.49
-
<
nation
profit
record, relative immunity of such
stocks to depression,
safeguards
the
for
investor,
effects of war,
priorities and inflation. Also in¬
cluded are comparative figures on
3.12
2.86
2.51
2.50
3.06
2.09
1.84
2.00
twelve insurance stocks which F.
1.19
0.98
2.57
2.36
1.80
L.
—*
1.33
1.15
*0.54
*0.51
65.51
4.47
4.39
4.85
4.81
3~50
ticularly
36.4
47.44
42.59
6.71
4.28
1.56
1.51
1.70
13.3
63.42
-60.41'
8.17
5.75
2.40
2.10
2.35
allowing for preferred.
are
4.34
Surety
"■After
this
as
4.26
Guarantee
j
which
discussed
52.30
63.76
„
upon
stands" is
39.04
4.1
Ins.
ture
55.59
16.7
Common
Bdg. &
Seaboard
U.
40.67
15.6
St.
—*
Cas.
Mass.
57.60
6.0
Surety
Reins.
Hartford
of the economic and social struc¬
tBondS amortized,
tlnduding investing affiliate.
Putnam
Copies
had
of
from
&
Co.
attractive
the
considers
at
this
par¬
time.
brochure may
be
the firm upon request.
THE COMMERCIAL & FINANCIAL CHRONICLE
"Volume 155 'Number 4056
1
UNION BOND FUND "A"
;
f
UNION BOND FUND "B"
•
UNION BOND FUND "C"
1135
THE YALE & TOWNE
'
V.
UNION PREFERRED STOCK FUND
MN
UNION COMMON STOCK FUND "B"
UNION FUND SPECIAL
v
;
on
the
request
Balance
certificate
York, March 9, 1942.
Sheet
of
of
the
Company for the
auditors.
our
As
in
1941,
year
previous
On
the
and
Of
the
of
following report also carry numbers to tie the written comments
to the various Income and Surplus and Balance Sheet Items.
v:.
los angeles
jersey city
Net
Sales
—
2, *Cost
of. Sales—Factory
cost,
selling, administrative and
*
-:
,
general expenses
3.
.
'
I
Miscellaneous
ceived
1941,
*
,
,
' !
Income,
Dividends and Interest
'
'
i
re-
-
less ; charges' for
$8,434.75 and 1940,
,
;
Qr
that
anyone
which ones."
could
That
be
to
pretty general feeling, and a
tual
fund
logical
■
in
the
field
seems
most
r
a
2,618,552.86
develop.
,
|
The
at
j,11.
long j
Latin-
sounds
fairy tale.
relatively
a
a
raw-
Deduct:
■
,
*
,
..Adjustment
V "•
;
s
with
4
*
the
*
in
Addition
,
6,193,220.96
.
1
,
L " ■-
23,084.86
Reserve
to
for*
'
:
|25.
;
;
year
h-
>———
..
nitrates and
cocoa
are
continuing
and other areas, the Good Neigh¬
bor and Lend-Lease policies. This
is a combination that's hard to
beat.
k/;/ '■
>
} Of
■
course,
commodity -f prices
be held down somewhat by
will
Mr.
Henderson's
OPA, but price
generally ineffective
controls
are
outside
of
national
should
price
Even
boundaries.
1
16,532.10
486,656.00
Surplus
incomes
for
American
producers; For exam-*
pie, a five-cent rise in Brazilian
coffee (the rise since 1940 has al¬
ready exceeded that) means over
$85,000,000
ducers.
for
more
\ ;
.
the,d pro¬
•
commodities not or4
dinarily shipped here from Latin-
tin1; from
Bolivia
five-year
contract,
Peru
from
'
666,410.01
•
—
•
the
York
New
"Herald
.'t
-
; "The rising tempo of industrial
activity in the United States be¬
Since
that
and
article
have'" lost
we
Maintenance and Repairs—
Iterri l.
1940
,In
the sales
1941
sales
because
sand
of
of
our
superimposed
of
definite
a
effort/the
war
written,
neighbors,
this
Lock, and Hardware
lines
lend-lease
Latin-American
but
from Mr. Byfield:
them.
of
will
we
supplies but
actually attempting to
many important raw mate¬
are
corner
result
of
bonds
/ *
cooperation
strongly toward
be
at'
through so-called preclusive selling.
agreements, particularly those of course,
a strategic value, in order to keep
been a
out
of
Axis. " Of
the* hands
we
course,
the
of
the
taking
coffee as¬
are
~
amounts
of
under the quota plan
us
5
the
dollar
tremendous
Such
sugar
Cuba.
and
quota
Peru,
Haiti.
imnortable
Dominican
Most
of
from
no
novelty,
constant,
immeasurable
dis¬
as
ordinary
imports, including bananas, plati¬
num,
hides,
tanning
materials,
»
German
assets
previously
amounting to
$1,284,197/
of
bonds
than
of
5580
Brazilian
outstanding
16%
"Chile,
and
>
declined
in that year.
operating
American
more
Law
on
legisla¬
$94,000,006
Page 1138)
-
been
set
of
stock
charged
of
in
1/
the
was
a
W.
any
made
to
"
Rates
and
the
Reserve
for
'
-
23.
Plant
'.
Inventories
of Cost
at
—
Purchases
and
Less:
•'
1941
During
need
of
:
'
/-•'•
dividends
the
-
,
of
f'i
$1.00
business-for
•' ■
'financial?
"
f
Item
..
exchange rates" during the year.
A
73,505.58
transfer of
$920,932
.
<
debt
to
v
from Surplus to
1
,
short of cash.
as
shown
strengthen
This
in Item 28.
the
$
7,350,269.93
at
$
8,169,368.93
Advances
and
Other
372,013.46
;
1,084,332.14
1.00
'
1.00
26.
Prepaid Insurance, Taxes, etc./;
.;!//':Total /w/j——//^—_$24,202/899^52 "$22/918,702.3D
98,325.78
j ' LIABILITIES \ •"■■■•
>■?;•?•;: Dec. 31, 1941
28.
Notes
29.
Accounts
30.
Dividends Payable
Payable to:Banks———$
Dec. 31, 1940
1,971,214.27
January 2nd.
Taxes
and
1,508
$
72,998.40
Other
t? ;
Total Current Liabilities———$
Reserve for Foreign Contingen-
34.
Capital Stock:
cies
1,278.135.01
5,9047802/52
$
2,859, 690.52
1,000,000.00
7
3,000, 000.00
|
Authorlzedikk$25,000,000.00
;
,.
" (1,000,000 shares of $25.00 /■• /' ?
' '1/
par value)
?
1• \
?/?///; Issued—486,656 shares— 12,166.400.00
Total/—
36.
.+
/ ?."
12.166.400.00
5,131,697.00
4.892 611.78
——$2 4,2 02,89 9 4)2
$2^918,70^30
TO THE BOARD OF DIRECTORS.
THE
/
'•
•
V
was
true
despite the $1,000,000 bank
Naturally,
Company's
cash
every
effort will be'made
position.
&
made
TOWNE
of
the
'
'■
.'
,
.....
MANUFACTURING
examination
an
=
J
;//
COMPANY.
Balance
Sheet
of
The
related
the
of
Statement
December
ended
and, without making a detailed audit of the transactions, have,
or
tested accounting records of the Company and
supporting evidence, by methods and to the extent we
other
deemed
which
with
.
appropriate.
considered
Our
the
general
sidiaries-not consolidated.
not
in
included
and-was
auditing
accepted
./
examined
also
We
examination
necessary
we
generally
circumstances,
for
?,
YALE
have
We
examined
the
'
557.11"
72, 998.40
.
—4k--—2,860,589.85
33.
•
'
1,000,000.00
Payable
for
90.668.86;
Company as at December 31, 1941,
of Income and Surplus for the
31, 1941, have reviewed the system of
internal control and the accounting procedures of the Company
-V'
Reserve
/
9,670,971.69
27.
and
•
Item 18.
Because the unusual expansion of the business in
1941 required an increase of various types of assets (principally
receivables and inventory) the Company > closed the vear some¬
what
9,297,926.73
Trademarks, Patents and Good-
year
>,
.
1
COMMENTS ON BALANCE SHEET
"
fend
(
•
.
Yale & Towne Manufacturing
Contingencies seemed,
under all
the
circumstances,,
sound Judgment-to the Directors.
A further explanation of this
reserve
is given under Balance Sheet Item 33.
v ' ?
I."
85,748.86
17,840,340.62
/ •:
^
35vEarned Surplus———
tax
Foreign
"■■I
8,262.073.66
$13,488,584.71.
.
accord with prudent
judgment/ r1'// /'.i"/'r:' > r
in Canada and England were' calculated
13.
10,443,323.36
Deprecia-l
//V;'-Companies
Accruals 1
Of
'/•
"
Earnings
average
in
Subsidiaries
3,615,734.47
$16,308,783/77
(Secured)
for
tion
32.
per share .were paid.
The
cash made
this payment the
ilargest one the1 Directors could declare in
i
200,000.00
$
Equipment—(16,648,196.66
Reserve
1,610,776.58
3,815,734.47
/.7,1/
>
Market—
or
Current Assets
31! Reserves
in
Dec. 31,1940
$
-[
200,000.00
; "'TL368[388.24
Employees' Loans for Stock and
V
'
normal
(
Doubtful]
1
■
22.
of sim-
application
.
?:?;/
'■
Dec. 31, 1941
*
•
Total
25.
conserve
deduction
JR.,
President,
SHEET
:(
•/!/??,/?• ASSETS
21.
a
6.-
?
BALANCE
Merchandise
/•
great difference.
These factors applied to the
much
greater, taxable profit were chiefly responsible for the
large increase in Income and Excess Profits Taxes, as reflected
in Item
GIBSON CAREY,
?
20.
.formerly
program
undertaken
without
up
Tax
to
and
Division.
will
business
Profits Tax before rather than after the
Excess
both
Subsidiaries
German
to
1941
year
amounting
,
the Federal
out
between
Accordingly/
"Reserve for Foreign Con¬
v
'
to
a large% increase in sales as took place in 1941 a
advance in net profit might weir have been expected.
in
1938
advisable
Germany,
German
against the
COMPARATIVE
24. Investments
-The net profit for 1941 was $1,669,386,'an increase
over 1940.
This represented a profit per share in
$3.43.' «"/■,';>■ ■■'. a-r1 ;>;
increase
in
its
in
its
1
V' "/-wk
an
Company's German properties.
All
not yet obtainable and, therefore,
are
in
exists
war
deemed
———k—1,497,072.17
Receivables //—4,568,388.24
■
No reserve for foreign contingencies was required for
•
dollar, k"
supplementary
(Continued
latter
with the
of
been
investment
TOWNE,
Home
With such
acute
.
under
of
The
,
State
tion.? has retired about
v,
H.
,
T/;:
$258,219
igreater
:{.
are
amount
j
such
v
has
provided
was
state
a
it
13.
Lower
•
Item- 9.
of
largely
though
its
liabilities
been
that
Account* -/
amount
definitely
Item- 8:
.1941
is, v of
there has
return
•-
/
are
bonds to the countries of issue.
Reoublic
our
'
Net )
18,
\
Company's Balance Sheet for the
consisting
has
k
1941 from operations, as transfers of profits were made Irom
Canada and England and as no German profit was included due
to a total.lack of final figures for the year..
/
repatriation
,
Chilean and Peruvian copper, and
we
have recently increased the
those
$768,192.00
Now
of
.
of deductions nor the year or years for
ascertainable.
It seems certain, however,1
/that losses have been or will be sustained in Germany and that
'tax credits will materialize for 1941, or for future years or
Tor both.'
•
"Occasionally
some * statistics
available, as for example;
from Brazil, Colombia and vari¬ Brazilian repurchases of Federal.
ous
Central American countries. State and municipal dollar bonds
"We are buying practically the were reported at over $22,000,000
entire Uruguayan wool clip, all par
value
during
1940.
The
large
signed to
(see :
In Canada
.
Cash
l
%•
the- Latin
have
Taxes
the
them ' is
increased repatria¬
counts at which most of them
rials
them
in
Latin-American
the
and
assets
„
product.
Concurrently, however, our
undoubtedly will have to be curtailed
The
the'necessary; facts
of
neither
And, to quote again
"It is evident that the unfreez¬
haps not even then. Not only are
purchasing agents- combing ing of Latin-American currencies
tion
amount
total
19.
maximum
will
1942
to better facilities and to
1941-in connection
relatively
:
Profits
cess
Their. currencies
advancing
to the dollar.
Latin-
from
the
,
Depreciation increased from $515,862 to $666,410;
The longeri
ihours of operatioh and the amortization oh a basis of 20% a
iyear of a considerable amount of newly acquired machinery in
•.connection with war work were largely responsible. :.
/
■:.jtem 6.
In this report reserves for Federal Income and Ex¬
In
Our
of
of
Germany,
"
and imaterials and: to. increase the volume of production.
advances
Governments.
level not
corner
of
amount
•
due chiefly
vanced
particular, a large volume of dol¬
lar exchange in excess of current
requirements is being made avail¬
begun
needed
eliminate
even
in
;•
.
sub¬ !plification~of ..product.
are
(of which
and
Less:
policy
trend
Far.' Eastern <to-conservev,metals.
upon
to
for
1.
and Equipment decreased $819,099 to.
This drop took place due to the elimina-,
Surplus). ;
country
manufacturing efficiency ad¬
have
remote
Capital
836,713.93
"
only a few commodities.? done; by us' from Germany.v
Unfortunately, due to material
only are our - purchases of 'shortages; this program is becoming more and more difficult.../Latin-American products greater; \ypiein-2: u An: unceasing effort was made ^during 1941 'to im¬
prove the machinery and equipment in th$ Company's plants.
thus greatly improving -the dollar
!On .the. whole, it can be said that
balances
$3,000,000.00
515,862.64
1,335,812.73
"Not
able
America
by $2,820,199/v
Liabilities
caption was responsible for the large dropwhich decreased from $1,084,332 to $372,013.
/,
of
of
$21,081,445,
increasing amount of war
considerable
of our defense, lend-lease
long range development pro¬
grams has - now
advanced " to a
every
$1,257,623.
The rise of Total Assets,
27,
'
COMMENTS'ON INCOME AND SURPLUS STATEMENT
-
:the
mention
cause
since 1929 and per¬
Current
this
to
18.
the
tungsten
was
our
and
seen
item,
-
notV include any sales of the Velbert
Mexico." '
and
Byfield, President Export-Import Bank loans.
of the American Foreign Invest¬
The net result of these'various
ing Corporation, wrote in an ar¬ factors has been to : enrich the
ticle vin
to
a ■Hj Because of. the Company's equipment and skilled personnel/
under
now,
As Robert S.
Tribune" last October:
increased
to
stood at 2.8 to
Chairman of the Board.
America, such as antimony from
| Our .Materials Handling Equipment and Rotary Pump lines
Mexico, Bolivia and Peru. We are iWere
in great demand.
In Locks and Hardware the volume
asking Cuba for more chromite. also was, unusually large.- Because of the nature of our regular
Other
strategic • materials: are products," a considerable percentage of our business in them was
jdirectly, ;Of .indirectly connected with the war effort.
In ad¬
manganese from; Cuba and Brazil;
dition, the company undertook progressively during the year
mercury from Mexico and Peru, more orders on special war items.. ,1
-2•?-k-'. y;,- 2,i/k-"i
stantial
: v/
Assets
ratio
•
$29,769,103 were 41.2% above
though (the 1941 figure did
(German) Division.
These
J1941.^shipments are the largest ever made by the Company.
to buy many
pre¬
South
the
elimination
The
under
JOHN
The; English and Canadian Divisions-,not only did well but
commodities, the rises which sources of rubber, petroleum; veg^ j;
-they, worked closely with their respective governments on war
have
already
taken" place
are etable and other essential oils, tin. iwbrk.vfitr ii/-also of interest that by re-tooling and by a special
great enough to provide substan¬ and chrome ore,; and-'sugar - to effort7the Company .was able to do from the .United States a
increased
,l'(
■;/..•
Current
of
in
proper
assets
/
—
can
tial
view
In
be
to
Plant
1941
German
Charges to Earned
;" -*Ineluding{
1^. 3 yj, Depreciation:
siderably
-
controls
vent further rises in Latin-Ameri-
Total
amounted
In
24.
this
Item
486,656.00
I
in
for¬
Total
v.
normal, and in most cases con¬
in V excess, of normal
'
expected to benefit from rising volume.
j
"In
commodity prices, the search for
addition, we are arranging
commodities
balances,
felt
:///■ 1' GENERAL COMMENTS ■vk
The loyalty, ability and cooperation throughout the Company
are of a high order. rj For this the Directors and Officers
wish
to express a deep sense of gratitude.
■-/../ ; v
By order of the Board of Directors./?
*>•■,'/./'k/v/'-T-:
•
.
372.16
■
Cash Dividends
* •.;
1
$ 4,892,611.78
of
is
the sum of $2,920,932 and the remaining balance
$79,068 has been brought up to $1,000,000.00 by transferring
from
Earned Surplus the
sum
of $920,932, as stated under
825,000.00
27. Earned Surplus—December 31st.$ 5,131,697.00
sources
inventory
tingencies"
5,485.28
1
but in order to present an united
new
This advance, however, must;
sales, the addition of
unfilled
of
1,300,609.18
merly obtained from the Far East
the
$7,350,269/
the
in
there
-1
of
foreign
1,430,301.46
be
of
$2,181,249.
$16,308,783,
carried
the
\16. '
can
of
$2,920,932,
|
connection
conversion
assets
$ 4,782,053.84
effort, not
only because of the raw materials,
Briefly, Latin-America
23.
total of
this
.
6,561,998.46
,
in
the
net
-
■■■;;
•
lid, *'/ Profits or Losses on sales- of
|
»
investments during the
war
front opposing the Axis powers.
All
,
figured to represent the maximum liability.
Item 33.
Some years ago, the Company commenced accumu-'
a
reserve as a
protection against possible losses to its
foreign investments.
This reserve at the close of 1940 amounted
1,411,167,12
$
;Foreign Contingencies.920,932.76
>•
producing section of the
world, the United States has sud¬
denly found Latin-America to be
to
sales.
lating
''kBi -;
^
Earned Surplus "before the fol;/
lowing charges'———-2-
■12."
|
al¬
material
essential
in
in operations.
The $200,000 unforeseen contingencies. ./'
$10,443,323 at the close of the year *
: Item
31.
As was explained under Item 6, tax reserves have
been set up without regard for possible tax credits in connection
with the Company's German assets.
Item 31, therefore, was
175,000.00
*
>23,
poor
in
total*
a
place despite the elimination of German assets.
In Canada
and England the Company's Total Assets were $3,240,418 at the
end of
1941.
////■■/■.
'?./
1,586,167.12.
!—I
countries
most like
Long
time
With
of
Assets
Item
\10. Ea^ned-^Surplus-kfahUary 1st—$ 4,892,611.78
so
of
story
this
advance
to
"
<
America
the
receivables,
took
j
i-Add:
with
in
cover
amounting to $5,904,802)
Item
*
1,669,386.68
the,
of
Ger¬
many
r—*
./?•
oper-
Foreign "
Contirgencies
.
the Latin-American issues is that
to
ordinary
ex-1
amazing thing about
interest in them has taken
from
in
included
in this category.
Aside from Ger¬
total betterments were $947,639 and depreciation was
$666,410, making the net increase in Plant Account $281,229.
:
297,333.44
1,032,385.74
j. 9. Net Profit (from ordinary oper(
i k//-/ ations after deducting Re>
;
'/serve/for Foreign Contin' ■ I
k
gencies)
-.$ 1,669,386.68
a
answer.
The
Profit
$350,100
cash
are
England, at the fconversion rates indicated in Item
tion
2,402,413.93
.ations
,
| 8.' ! Deduct:; Reserve. for
mu¬
several years
with
perience
,
buy
him
tell
seems
Net
7.
J
to
to
no
'■
total
32
Item
'
1
$752,653
products and the heavy
Current
.......
didn't "know what issues
of
considerations
a
and
»
Taxes)—
to
one
increase
an
war
Item
,
■
included
absorbed
were
; Inventories
20.
Item. 21.
to
2,321,219.42
/
'
,
-"/? [
/
s
he would like to put some money 4in
Latin-American
issues
but
blanket
these
•
v
Profits
debts,
is
,
~
•..?•,•
•
Opportunities for investment in specialized fields where the or¬
$21.00
A- 256,625.19
dinary investor fears to entrust his money are made possible by 5 5; Net Profit from ordinary operations before Federal, State
the mutual investment companies.
5
■ :
The present sudden realization 1'?^
4,071,800.61
of possibilities of Latin-American bonds, for example, was long ago {. and Foreign Income Taxes.
i
6.
' Deduct:
Provision
for
Fed¬
anticipated by the American Foreign Investing Corporation,
eral, State and Foreign Income Taxes
(including Ex¬
t
One substantial New York investor remarked last week that
cess
bad
a
of
consistent
was
known
new
18,760,226.25
•
"
3,815,175.42 •'
etc.
Add:
'
—//f— 25,953,928.36
Net Profit before Miscellaneous
i4.
$4,368,388,
increase
amount/
j
amounted
which
be'judged in connection with the larger
(
m
.
sterling,
$1,497,072,
reserve
Item
of income and surplus ' ;
1941
i
1940
*
$29,769,103.78
$21,081,445.67
In Canada, at an exchange rate ofr
and in England, at an exchange
dollar,
pound
Sheet.
The
19.
showed
[ comparative statement
4 "• V '
' ;'-v : riV:";
of
cash
Balance
Item
that the comparative figures between the years'1940
ahd 1941 are not on exactly the same basis.
Ft>r ease in refer¬
ence,' the two statements are numbered.
Explanations in the
cash
the
In fact, no German assets of any kind
many.
course,
for
$3.50
total
31st,
Canadian
the
of
rate
with the
domestic
years,
December
$.80 for
Accounts and
foreign accounts have been consolidated, except that for 1941 no
figures; are included for operations in Germany.
This means,
63 Wall Street, New York '
•••
New
•ijYour Directors submit the Income and Surplus
--JINCORPORATED
chicago
ANNUAL REPORT-1941
To the Stockholders:
Abbett & Go.
.
;
;
V
r "
Prospectus covering: all classes
oj stock
i
MANUFACTURING COMPANY
:
STOCK FUND "A"
UNION COMMON
made
standards
advances to
such
procedures
in
accordance
corporate records
of
in
the
the
sub¬
The aggregate equities in subsidiaries
consolidated exceed, by a moderate amount,
and
all
applicable
subsidiaries,
and
the investments
the operating
results
these, subsidiaries: for-1941 have been substantially reflected
in the Company's accounts;
'
Plant and equipment is stated at $110,680.69 less than cost,
after allowing for appreciation of land $198,665.70 recorded prior
to. 1910."
The assets are shown net after providing adequate
reserves
aggregating $9,579,895.63 against possible losses, de¬
of
preciation and obsolescence.
In our opinion, the foregoing Balance Sheet and related State¬
ment of Income and Surplus, read in conjunction with the com¬
ments contained in -the first paragraph of the President's re¬
port and
sent
tions
under items numbered 6. 8, 9, 18, 21, 27 and 33 pre¬
the position of The Yale & Towne Manufacturing
fairly
Company
for
at
the
December
year,
in
31,
1941,
and the) results of its6 opera¬
conformity
with
generally
accepted
ac¬
principles applied on a basis consistent with that of
the preceding, year.
,
BARROW, WADE, GUTHRIE & CO.
New York, N. Y„ March 9. 1942.
Accountants and Auditors-.
counting
.
..
THE COMMERCIAL & FINANCIAL CHRONICLE
1136
FLORIDA
Thursday, March 19, 1942
Bond Tax
such power
Proposal
Viewed fa Threat
FLORIDA
in
Immersed
and
of
tears
the
sweat,
all-out
an
toil
war
to
their priceless individual
freedoms against foreign totalitarians who shackle people to the
preserve
state,
people
American
the
are
those
loss
of
legislative halls
at Washington.
Currently under
consideration by the House Ways
and
Means
Committee are the
bold recommendations of Treas¬
with
threatened
freedoms
in
our
Secretary Morgenthau to tax
as
well
as
outstanding
bonds of States and their political
MUNICIPAL BONDS
in local and State gov¬
ence
ernments until finally a.cen-•
.
Our
government's
purse
strings
could ; be
used to
strangle every phase of local
governmental
independence
tral
.
municipal
to
familiarity with these
We
will
any
inquiry
obligation.
he
glad
regarding
CHICAGO ILLINOIS
1ST NAT SANK ILK
Record," of Hackensack, N. J., by
John Borg, publisher.)
turned
subdivisions.
Chicago Comptroller Sees ;/://
Increased Financing Costs
;
•
This
production.
ury
future
•
over
State and
amendment
would
not
be
ap¬
V
>
proved does not suffice in a
:
Recently, the House Ways and democracy.
Means Committee voted against a
One need not be afraid; because
proposal to have the Federal Gov¬ America is at war, to criticize
ernment pay out $300,000,000 in what he sincererly believes to be
unemployment
compensation to efforts to destroy that which for
workers temporarily out of work generations
he
has
felt
was
because of factory shut downs in¬ America itself—a nation of States
cident to changing over to war united for their mutual
benefit,
RLCrummer {.Company
Evening
"Bergen
the
for
no
local affairs.
comprehensive
a
comments
taken from an editorial writ¬
ten
at
us
bonds.
answer
-them
Ed. Note: The above
are
gives
background of
and home rule.
tral
all powerful cen¬
government that knows no
an
limit in its control
lony experience In handling Flori¬
issues
da
receiving from their water works
plants, their electric light plants*
or from
any other utility?
The
statement that
a
Constitutional
(Continued From First Page)
Washington
by statutory methods,
what is to prevent their
securing,
again by statute, the "right" to
tax the income that cities are now
down
recognized
too pleased at the State entering
the market on tax payment
day,
the
as
National
take over
one
,
..
proposal
because
it
was
who
was
Government
more
given to the National
certain
spheres of
government, but who reserved to
device whereby
a
could
Government
have
themselves
field of local
that
certain
other
spheres
not to be attacked
are
by Na¬
that
the
Comptroller government—the field of unem¬ tional Administration.
exemption feeling
This na¬
'Superficially plausible is the
from municipal securities would should have postponed the sale a ployment. compensation.
We, all tion has prospered, and it has
Morgenthau argument that hold¬
few
days;
Although demand for should have noticed other recent, been the Land of the Free and the
add between 0.75 and 1% to in¬
ers of such bonds should pay in¬
the notes was good, many New
terest rates on future city of Chi¬
more direct efforts to Federalize
Home of the Brave because we
come taxes thereon as do holders
York banks had their funds cut
the. .Ohio Bureau of Unemploy¬ have kept free from national bu¬
uf taxable issues, but the old myth cago bond issues, Robert H. Up¬
down considerably because of the
ment Compensation.
that tax-exempts are merely a ham, City Comptroller, said last
Similar ef¬ reaucracy and have kept the Gov¬
last day tax payment pressure.
forts were made in other States, ernment of our citizens as close
haven for rich men has been ex¬ week in the first estimate by a
local fiscal official of the prob¬
jbut. .opposition, .has -properly de¬ to those citizens as possible, in the
ploded by a 10-year inventory of
rich men's estates which disclosed able effect of the tax proposal Detroit Schedules
veloped to such moves,
>
form of home rule by States and
i
We have already heard some¬ local governments. * While many
.holdings of only 5%
in tax- now before the House Ways and Refunding Sale " •'*
f
^
•"
:
thing, and we shall hear and. see of our citizens are giving their all
exempt securities.
Also, in pre¬ Means Committee.
The city of Detroit will: sell
more, in the near, future, of an to protect our freedom and our
This cost, Mr. Upham de¬
ponderant
majority, such tax$16,758,000 of general obligation
clared, ^naturally would have
exempts are held by banks and
■enlarged program of "Social Se¬ form. of. government from outside
refunding bonds March 31it was curity."' Two
insurance
to be absorbed by an addi¬
companies to protect
pillion. dollars/ ad¬ forces, we who stay at home have
learned late last week, : following
ditional ; texes ^ Lave, been
re¬ a duty to protect that freedom,
tens of millions of depositors and
tional burden on local taxes."
action of the common council and
quested as a part of this program. and that home rule from inside
policy holders and by endowed
-Mr. Upham indicated that while the finance committee authoriz¬
{But /an insidipus part of the pro- forces. /; Therefore, one need have
institutions of learning to provide he
thought this hardly is the ing the City Comptroller' to a
higher education for millions of proper time to criticize the Federal
jgram, about which we have not no hesitation to contact his
vertise for bids. •/
' //
/
y:
*
American students.
yet been fold, is an effort to in-, elected representaives in Wash¬
Washington Government, he is in accord with
advocates of Constitution revision
This
financing
operation ; .clyde in this "Social Security,", in ington in an, effort to protect and
the position of the Conference of
the program of employees' retire¬ save that freedom.
We owe this
will supersede earlier plans to
by legislative short cut should Mayors which has expressed op¬
ment and old age pensions, all the" much not only to ourselves and to
therefore
find
a
more
sell nearly $29,000,000 of re¬
logical
position to attempts to remove the
:employees of the /States, cities, posterity, but also to those wjfo
funding bonds.
whipping boy than the greedy tax exemption status of munici¬
The; refund¬
■schools and counties.
In ? Ohio, are fighting our battles at t le
rich to convince the people of the
ing has been under considera¬
pal obligations.
^
we have for many .years had an
front in foreign lands.
tion
for
'///< ■
several
righteousness of their case against
months,.
At its recent meeting the Con¬
."The Power to Tax is the Po>wer
having been delayed by mar- ? •excellent, retirement. > System/, for
tax-exempt State and municipal ference of Mayors adopted a reso¬
as m
public school teachers.
We have to Destroy"—now just as it was
ket uncertainties and certain
bonds.
lution which said in part that
similar systems for all other pub¬ the past century. And one cannot
technicalities in recent State
But in addition to the indirect "a tax on future issues of State
lic
school
employees, and for help but wonder if certain people
legislation relative to adver¬
benefits
of
millions
of people and municipal bonds would raise
employees of the are not set upon destroying local
tising for bids.,;•■■" --v
/: jothfir public
from such tax-exempts, practi¬ practically no revenues whatso¬
State and of' its many cities and government as we have known it.
cally
every
American benefits ever at this time and yet sub¬
The issue will mature 1943 to
'counties.
Finally,
many
cities
from them more directly.
They— stantially would increase the cost 1963. The bulk of the bonds will
have their own retirement and
for
all of them are local tax¬ of municipal borrowing."
mature
in
the
last
10
years.
pension systems for firemen, po¬ Bond Club Of Denver
payers,
irrespective of whether
Widespread interest is expected licemen and other municipal em¬
they- be home owners or rent Optional Clauses in ■
Bowling League Returns
in the sale because it is one of
ployees.
But according to the
payers—save
from V2 to 1V2 % Bond Bids
the few issues of any size now on
w DENVER,;* COLO.—The
Bowl-:
plans of certain, energetic indivi¬
annual interest on the funded debt
>
That mounting numbers of mu¬ the municipal calendar.
duals in Washington these retire-, ing League of the Bond Club of
of home town, county and State
Denver announces the scores for
ment and pension systems will in
officials
are
becoming
due solely to the tax-exempt fea¬ nicipal
the sev.enth week of the meets:
exercised over the possibility of Iowa Counties Schedule
the future not be operated in Cin¬
ture of their bonds and the re¬
Won
Lost
Pet.
Federal taxation has been evi¬
cinnati,
Columbus,
Greenville,
sultant lower interest rate they
Road Bond Sales
Roy stones
18
3
.857
denced recently in the bond offer¬
Piqua or Akron by duly elected Odd-Lots
15 \
6
.714command
in financial markets.
As noted in our issue of March representatives1 of / the
Municipals
10
11
/!. .476
ing notices. Many of these solici¬
school
Making such public issues tax¬
9
12
.429
tations for bids contain the fol¬ 16, page 1066, primary road re¬ teachers, of the firemen, of the Preferreds
able might conceivably add 50
Over-the-Counters
9
12
.429
funding bond sales totaling $3,- policemen.
Rather are they to Corporates
millions to our Federal revenues, lowing or a similar clause:
8
13
.381
In the event that prior to
be
Investment Trusts..
8
13
.381.
811,000,
are
scheduled
by
10
Iowa
operated
by
bureaucrats
in
but conversely it would, when the
Dividends7
14
.333
counties between March 25 and Washington.
the delivery of the notes the
cycle of borrowing, investment
31.
The smallest issue is $326,000,
income received by private
You ask, and many others have
The Roystones are captained by
and "higher
interest rates were
the largest $425,000, and it is ex¬
holders from
notes
of the
asked, with amazement, does the Leon Macart, Municipals by Nor-:
again completed, add that amount
same type and character shall
pected that bidding by Chicago National
Administration
or more to local, county and State
expect, man Godbe -of Geo W. Vallery &
and Iowa bond houses will be to
be taxable by the terms of
tax burdens for home owners and
j levy
social security taxes Co., Odd-Lots, by Jerry Ryan
any Federal income tax law,
gratifying
to
county
officials. on .employees of the State of Peters,
renters throughout the nation to
Writer & Christensen;'
These bonds represent, very good
the successful bidder may, at
Ohio,
and of
Cincinnati, and Preferreds by Hal Myers, Cor-:
pay.
In the last analysis, Morhis election, be relieved of his
purchases
since
their
security also upon the State of Ohio itself porates
by
Bernard
Kennedy,;
genthau's proposal to scrap tax
obligations under the contract
coverage is highly satisfactory.
and upon Cincinnati itself, as em¬ Bosworth,
Chanute, Loughridge.
exemption on those bonds there¬
to purchase the notes, and in
fore becomes a device not to tax
ployers' contributions, just as so¬ & Co., Over^the-Counter by Er-;
such case the deposit accom¬
cial security taxes are now levied nest Schlenzig, Investment Trusts
the greedy rich but to add to the
Major Sales Scheduled \
panying, his bid will be re¬
burdens of the little taxpayers in
upon both private employees,.and by Chan Lilly-, and Dividends by
■'/■
March - 25th
:
••/"
turned.
Smith. :, /.-./
private employers? /././.
V' ■;
-. /■■., •:'
■;; '/■' %:
every town, village and hamlet in
$1,861,000 Seattle, Wash.
'
the land.
High team series is held by the
If these individuals in Wash¬
Cochran Bill Under
Syndicate
headed
by the' BancamericaBut there are other implica¬
ington secure the "right" to fax Odd-Lots; high team game by the
Blair
Corp. obtained the award of the
Consideration
the" very means - whereby, State Municipals; high individual series
tions far more serious than mere
bonds
offered
in
September,
1938; -pur¬
The
House
Rules Committee chasing the issue privately.
and local governments perform by Ernie- Stone with a scpre of
additions to local tax bills, for if
high, individual game by.
their essential services, what is to 587;
the Administration wins this bat¬ last Friday took under considera¬
March 26th
" 7!' prevent,: their; securing the "right" Chan Lilly with a score o£ 237. J
tle for supreme power of the Fed¬ tion the proposal to exempt con¬
of
Removal
'
tax
.
,
-
-
.
.
-
.
>
—
—
,
—
„
.
..
^
■
■
.
■
.
eral Government to tax the States
it
will
have
who
holding war $901,000 Cleveland, Ohio
;
orders
from payment of State
Last July this city awarded a -larger issue
taxes, known as the "Cochran to a syndicate headed by the- First Na¬
tractors
are
to
,
tax
the
States
and
the
local
■
The
cracy
Washington
bureau^
fears a people's refer¬
endum
on
Constitutional
a
amendment
to
reach
this
particular goal; so it wants to
try the legislative route com¬
■
■
State
Comptroller O'Leary sold
$100,000,000 short-term notes by
damental law to make central
allotment Monday to 91 banks and
$16,758,000 Detroit, Mich.;
bond
The
validation
to write
new
government immensely
powerful
ment
With
and
State
practically
taxing
States
in
its
more
govern-
impotent.
power
over
hands,
the
central
government could obtain the
power
to™
control
if
not
to
destroy
State
Government.
Slowly but inexorably such
power
against
could
financial
be
exerted
independ¬
houses.
They
are
said
them
going
portfolios.
will
be
for-general
to
to
be
made from
tax
Co. of New
York, and associates.,;
'
:
■
-
'
.
-
v.* ^
■
Why is this group of Centralists which the memorandum states is
Washington unwilling to sub¬ good, ratio of operating expenses;
market;
mit the question of taxing/State to; "operating " revenues,
and municipal bonds, to the peo¬ and condensed balance sheet.. "We;
ple in the form of a Constitutional believe,?/Hixon, Stewart &. King
in
amendment?
/They fully realize
■
In
December
the
that'
such tax¬
Carolina- .(Slate ation by a mere Congressional
statute, they will have established
State, awarded, similar the. theory of the supreme taxing
$3,000,000 .South
.Of) •
" - '
:
i long-term certificates to
was none
i
that if they can secure
receipts
It became all too apparent
community
city awarded' a huge issue last May
syndicate headed by the Chase Na¬
Bank; of
New
York,
whose
bid
topped that entered by the Bankers Trust
New
due in the near future.
the banking
a
7:
tional
York State purposes and payment
will
■
.,
investors,
most
of
directly into bank
Proceeds of the sale
used
«.
March 31st
have met strong demand from in¬
stitutional
-
„
v:':/V/:/
State Notes Sold
N. Y.
:
71 j.
*
fun¬
plemented by Supreme Court
-
developed subsequently on the
ground that its enactment would
result in greatly reduced State
revenues,
'
gQvernmentsthemselves?t'VV'hat is
;
iMcClpucl RR^Iuter^sting f
to prevent/ the /hext Step/Rafter
A detaiied .analysis of the Mc-:
taxation; of the regulation; of ;the
issuance, of State and municipal Cloud. River Railroad Company)
bonds? -What is to prevent an¬ has been .prepared for distribu->
other > and; a more - insistent—and tion by Hixon, JStewart & .King*.
perhaps this time a more success- 120 South La Salle Street, Chi¬
$1,275,000 Camden, N/J///' ;r
fult-effort of therSecurities and cago, ill.,' members of ;the Chicagq,
Syndicate
headed " by
Stroud & Co. of Exchanges Commission, to, place Stock / Exchange. - The
analysis;
Philadelphia obtained the award; of the
under its jurisdiction the issuance Contains /a' brief history of the;
bonds offered last November," Ueatirigr out
of
State and;municipal bonds—as road; and type of business carried,;
Campbell,. Phelps.Co. of .New York, 'and
associates,
an^ several other bidders.
/ it now" controls practically all capitalization,' comparative divi-figures,
labor
situation;,
private financing?
/; / /J ,dend
probably the
decisive battle of a long and un¬
Runner-up in
This measure had been tional Bank of Chicago.
remitting political war to deprive Bill."
the bidding was l^hman
Bros.: of New
our 48 sovereign States of home
favorably reported out of the
York, and associates, ' '' * "
1
' 1
rule and States' rights:
-<r' yy
,\
;w y ik vi"
Is that House Ways and Means Commit¬
but
conclusion farfetched? Let us see. tee
aggressive
opposition
March 30th
'
won
says,
"the: road should
continue,
its present basis,!
due to the continued demand fop-
to
earn
well
on
lumber for defense and more so.
after
the
duration
when
recon¬
the Central Government struction is in full swing."" Copies/
States; and/ their local of the analysis may be had from;
,;;/ :
subdivisions.
Having established th€5.firm Upon request/;//.:
syndicate headed ■?
power of
by Lehman Bros, of New York.Sepond
highest bid was submitted bv John Nuveen over; the
&
Co.
of
a
Chicago, and associates. :
,
f
VtStKC«»VFWtwkM'<tu&irMu*''iiWirrt
Volume 155
4
Number 4056
-
'77 V
7
i
:
THE COMMERCIAL & FINANCIAL CHRONICLE
"
""
'
1
1
"
A
■•
•
'
-
i
''
t
Ay.
,
f,
a
^,
,/
,
'j
•
'£■ *
A<*i
,
'
J
,,
^7,.% •'
'j*" " ■ •1• W
$r.*\ +
f\* x i?
<> V.
•'•• •
•'
*f 1
tifl'Jl
■'
-
' ''A V
.
-." •'
" • •
'X
'
'ft
'
' t-'
^
v'"
>v
V••:.'•
7 •
f
■
«
,
{
i
•*"" Lt^.7-; l>
•.
f
•-»
*
i
:
'
.T.-
.t
'• •
r-Vv
»
r"
t;A *;
•■."•
•
v',
!{•'':> ''v
i-A
'V-
c''
-''l
*
*
r'
•
'V,
1
*
'
Bonds',
77
;
? Thus
^
-
•
-
•
^
'
^
V*'
4
,
r
'*' " \
*
•
»"
*
' ' v '*
4 1
".rv,^ *,
,•
'•.*
A ^
v« t'1"."
•
">"*
"
.
'
i:-V
^
'
.
helping to finance
are
and
'insurance dollars
7 22% of thb
Because of
Company's assets. In addition,:
7;-.
,
.about
..
V;
''
•
'
»i
'
t
■-.'••■•*y-
f
"
«•
»
w\.
'
1
V
-.^vVr.fv
• v
>
•!':
^
.'■
■
C
»
,1.
*
I
'■
.«•
«.
' v ■^
t
-../vyA;%'«• ^£.«»,§?V*'J*•
♦;^ir-'yv.
'»<
v
'{,.
.'•• .■
•
'*
>in^'vp4^.s;.Vi ;.'v
-
''
'
>, '.7.
••
r1
r«\,7'v.?'v
••»
'.
?
^
K,
<; ij:>
S
,
*••
•
.•''•••
.
at the lowest rate
were
recorded in the Company's history.
•/
:
.
In fulfilling its obligations to policyholders
'
your
7 during 1941, Metropolitan paid
credited
or
f to policyholders and their beneficiaries
$567,900,000. Of
than
than
$383,700,000
was
this amount,
paid
to living policyholders.
Metropolitan is
or
credited
•
„
„
mutual company. Its
a
assets are held for the benefit of its
policy-
holders and their beneficiaries/In the
time, these assets
mean-
always iri the past,
are, as
being used to help meet national needs.
agents,
our
•>
l.
;
.•' O ■ '•
lapses and surrenders
public appreciation of life in-
increased efficiency of
surance,
'Ct
'
flowing from the than-
are
.«•
^ and the better national income during 1941,
of your life
more
J(
..
7i
,
;
i
v
r
more
more
-"»«
%
,
'
■'*
^
^
7,s '-v
' ■!>
•
more
Each month
'
i '■/
*
pouring out the steel, chemicals, oil, food,
war.
",
,-
"»
'
\
♦'
«a
;
,
,
'/•"
l'"'
" "
v
'•"
1 V-''hi
'-l
'
ovV.
'
' "
-
munitions, and other materials needed for the
your
United States Government Bonds
7->
^
"• J:
''' '*'•
,
At the end of 1941, Metropolitan had *a
.
.
'
k
"
(;»he^s of peace into investments that serve war
total of $1,214,931,424.25 ^.invested in*
and war industries. •-
-•
,
'
"
■""» ■*
In both the Unite(J States and Canadaj ]jfe
are
war.
life insurance dollars are helping
to safeguard American lives and liberties. ';
-
^;
«•
7V
'■ 1'
production of power, and the industries which
helping to buy planes, tanlcs, ships,
are
V
v
■
defense housing, transportation facilities, the
^oVerhment
in
>
-.7 «<f,V
v
V
'1 ii,'-•<-^v''"
j
insurance dollars
and all the other implements of
guns,
7
;: ;t
f While supporting that security, your life
-insurance dollars, invested
'
-
''
,
,
.
•
/
.
on a new mean-
amily is paramount,
'•*
K
11
-
■
$104,982,562.49
was invested in Canadian
Government
Bonds.
.' * 'ng- M°re than ever before, securitjr'for the
/
;
'
7
Vi
t)V?
,1 ■'•■V*
'
%
lif*
'77 I ''7r. 7 ■••' 7-:^C7vh77'■:
1 •
(
v' ;••"'•••'
t
'-v %
IN TIMElifeOFinsurance
WAR, thetakes
security underlying
your
'
'•'
%
Vv".'\
t
.•;
'
4
' 1 ••f.
,•
'-"T-./••'>*:v-T}:
V.-^;.7
•,
t.v;
it:7!
,
•!'
^
»f'
(
'
'
1
* ^!
1"
;•'•'.77.' f:
•
>
•■'•"'•
"• -" *
f
til,
4X3''^>
'*
i
Your Life Insurance fin Wartime
1
<
r** 'i
v
•"
'
"
•
-•'•■;•'
,\
ic
•V,-A
r ?I
i!1,,.'/1
'
H
1137
.,
;f :/v7:f
j' V-f:'r .f .7-vf:'7.:'7 77"f:r;'v;::f.;^:-.
;>7f :■
:
BUSINESS REPORT FOR THE YEAR ENDIMG DECEMBER 31,1941
'
„•
^1*;^
-'7J
j
.
% +i*
(In accordance with the Annual Statement filed with each State insurance Department.)
7 7
r-
cV;l/T f,0l
•/.'*
,Vy, -i~i
''V^V
fv\",
7/ v-^-vV-vi:
■
-
'7 ,.C»' '«
interest, is required to
future policy benefits.
Dividends
•
X^
s'! r-
i
;.
.XXJXX
-
.
.
.
.
to
payment of
assure
U. S. Government
.
„
' '
.
0
Policyholder!
109,974,302.00
.
.
"
v
7
;
,
V^\
7>- > ^ t'>
^
.
.
•
U. S. State and Municipal.
.
-
.
>
.
.
Other Bonds
.
;
.
-*
-
7
y
..
.
.
.
<
,\r\A oqo
Xy
■■■■'■
$1,319,913,986.74
.
^7 $1,214,931,424.25
,V
.
^
Canadian Government.
'
Set-aside. for- payment in j.942 to fhqse policy.holders eligible,to receive.them..
>
;
^'
,
/'!' \
,
r:
«.National Government Securities
.
.
all
'
-?
X ?.7'.-V-r
$4,909,535,985.79
V
.
.
.'/■ 7
ASSETS WHICH ASSURE FULFILLMENT OF OBLIGATIONS
W77'V.''XXX'■r'"
This amount, together with future premiums and
; /
—
!
X.
Policy Reserves Required by Law
.
;7
.
^..y
1 "7 i. /■
i
OBLIGATIONS TO POLICYHOLDERS, BENEFICIARIES, AND OTHERS
..
.
cao ao
•
'
.
104,982,562.49
*
•
*
2,091,311,142.34
«'.,•»
•
92,949,983)75
Canadian Provincial and ;
7
-
Funds
for" Future
i77
Contracts
it.:,
aries and
,.i
.
.
.
.
;
.
Dividends left with the
•;V-'
Company,
,
.
deposit with the Company.
on
.7:7 i"
'
7.
i;i:
.
:•
-7: i
.
7 Other Policy Obligations
'.
•'Including
.
.
.
.
...
801,409,204.15
..
con
....
.
24,247,909.86
«oo
Preferred
82,191,836.00
Guaranteed.
or
955,324,104.05
88^82,977.02
Other Property
Loans
oir
866,941,127.03
.....
v>
*
;
-
,
;■
Policies
Made to
486,834,916.35
policyholders
the security of their
on
Real Estate Owned
407,190,758.93
""
Taxes Due
"
Accrued
or
Includes
.
estimated
.
.
.
".
.
of
amount
'
.
.
taxes
,
v*
.
'
12,914,533.00
;
-
.
Includes Housing Projects,
Company use.
>
payable in
'^';''"::'""1942onAe;tasiMssof 19^'7"
Mortgage Loans
.
.
.,
e0$h
i
.
.
*
'
!
,
*
.
^ •
.7
.
.)-J
/
/
,
'
■
.
TOTAL OBLIGATIONS
.
.
•
.
SURPLUS
/
7
'
'
:
7
*
y
7
!
--
,
;--
.V
"
'
.
'
Special Surplus Funds
'*
'
'arid
•/V
»v-1
;xl'j.
...m
•
)
"
•
,
•>
7
f-' ''
,
—
•
"
-
serves
•
■
as
™TAL ASSETS TO MEET OBLIGATIONS
.
f
p/t
v
-•
-
1
•/
-trX'." -"•r
-
•<
• t"'
>
-•
1
•
t
r
'
.
•
.
.
,v..:
..
-r
.7:-
:•
.....
•
,
,
.
.••■•..
*
*
.V J,...
• •
;
i
'
v.
<
V.'
.' •"
.!
7".'.L.
'I
v
4.
.
•
'
-
r ■- "
•
77-
'
•
•,
»•
,
-
_
.
•••...
....
...
•..
..
$5,648,047,196.07
77
-'7
■
"
"71
"
T"
7 .1.7 :j 7:
:
"
~T~
1
.
"
"
TTv
•'
v
'
;
j
MUTUAL
COMPANY)
.
,
•
■
7
^
.
i.i
■_
;
•
•
.
I.
'
'
M
r
.
1 Madison
AVENUE, NEW YORK, N. Y.
*, 3
-
*
i
■
'Y '
7-' 7.
'
<"•'
"7.
>
'
•
"
'
-
•
'
'
'
,
...
"
•;
•' /«»"•'
■' ■'
•
■
;
'
'
!
7''"
T
•
••
.
.
Please send
•'
:
•
v..7;,
•
•
-
*
•
me a
copy
of
your
''V7 7'-
.
*
V„,.,g
•
Cj
■
■
,
#
Street and
'
,"■■/'
•
7'
•
;
.
7'.:
7
IS umber
v
•
■: 7
•
•
*
.
City
•
:
r.v
anuual report to
.
{
••••••••••••• # •
policyholders: "Your Life Insurance in Wartime."
•
~•
^
7
•' •"
1 Madison Avenue, New York, N» Y.
•
-
.7
:
;■
-.
3-
•
•
-
;
-
Metropolitan Life Insurance Co,
*
'7"':
,
.
-.-.v!. .>.3
)
•
•
•
'
Leroy A. Lincoln, PRESIDENT"
-*
7
_
'
,
CHAIRMAN OF THE BOARD
•••7
,
'
"
-
Frederick H. Ecker,
v
••
•
\
,
:
'; '
..
•7 7...7:'7
'
•
,v" :
.
.'■•• •.'.' *•*'
--x
:;;\i;7:::.7.7.
7)
.7< 7/;
'
unexpected claims.
or
•••••••••••••••«*•
!7;7:::777:';v Metropolitan Life Insurance Company
"7
'>
'<*
-;
"77
•
,
■'
',,'-7
II
i\r:
,
7
,
'.*■
•
-1^777 7
$340,894,142.717
.
.
■' -r
--
r -
.
.L'l-'
.
^
mmw———— I
.".T:7
.7::.;.. 7 7
"
-
-I
I
.
;;y-' 7"-^7;7 '7;777./
•
'
...-
Unassigned Funds (Surplus);
,
against possible unfavorable experience, whether due to economic conditions
•
*
-
7
$7,190,000.00
.
J
State
mmm■———•••••••••••••••••••••••• •••••••••«
*" "T-111" "
'
iV"'
"Tc
^
i
*7
j
7
•
, r
■-
,
,
'
,
-
.
•
-
'
.
'
•
.
.
:...
.
.
v"
-
^
.
'
7.:
.
.•
■.
'...
;
-
»
.
-
v.
■71'
■
7
>
;
.
NOTI-Assets carried at $256,949,853.57 in the above statement are deposited with various public officials under requirements
;of law or regulatory authority. Canadian business embraced in this statement is reported on basis of par of exchange.
-•
:
cushion
a
__
j--
V *\'YXs
I.,
.
■
,
total assets which exceed the total of its obligations by $348,084,142.71, for the purpose of giving added
that all benefits to policyholders and beneficiaries will be paid in full as they fall due. This amount is composed of
asfurance
'
77777-7'-;777
;77:?r^ The Company holds
,'7-7
»
determining Policy Reserves, but not
in
$348,084,142.71
FUNDS
7
'
152,218,269.31
.
.
,
$5,299,963,053.36
•
for
estate
) 7
77:7777:777:7;b7
Interest and Rents Due and Accrued, etc.
.
.
*
.
60,785,325.43
*
^
♦
.
yet received,.
"
v
.7"
; V" V
.
;
21,011,915.49
;
,
.
real
,
,
Included
1
.
'
'
'
^J.n
"d"*!
- Miscellaneous Liabilities .
.
.
...
; '
Other liabilities not included above. "
'
.
and
.
Premiums
'
of such loans
-"
......
11,000,000.00
To provide against possible depreciation in value
7.',
•
.
"
■
Reserve for
-
•
vS):-'".!;:''
policies.
18,218,374.00
,
:
-
.
ere
(
,,
V
"
no
.
-
•
,,
.
e«i
,
,
:
539,561,688.03
Farms
paid in advance, etc.,-,;
premiums
554,581,646.59
First Mortgoge loans on Renl Estate
:
but have not yet been reported to the Company.
t
•
V,
*
All but $128,323.00
26,574,405.52
.
,
•
j
102,808,619.82'
•
...
,
.
Industnal and M.scellaneous
,
estimated afnount of claims that have occurred
v
.
'
Stocks
Polity Ctaim» Currently Outstanding. . .
'
Amount of claims in process of settlement, and
7
i
,
f
•
'
,
.
t
■
Public Utilities
4
♦
.
.
,7 .7
Railroad
Amounts of dividends, and interest thereon, left
.
7.'
166,485,627.70
.
years.
^
7 J 2
.
policyholders have left with the Com-
be paid out to them in future
pany to
1I.V:
Municipal
Under. Supplementary
Policy proceeds from death claims, matured endowments and other payments which benefici-
7.
'
Payment
'
•
..
;
■
'.
t
.
THE COMMERCIAL & FINANCIAL CHRONICLE
1138
Thursday, March 19, 1942
The first step in that
he
argued
task of
General Machinery Co.
to
was
direction,
undertake
the
arranging facilities that
so
the old job of informing investors
could be undertaken, anew.
Hooker Electro-Chemical Corp.
Competition?
Metal & Thermit Corp.
SOME ATTRACTIVE JUNIOR RAIL BONDS
Nicholson File Co.
Selected Issues of Illinois Central
Bell System Tel. NY 1-1950
that
out
The Securities Salesman's Corner
USING SIMPLICITY AND FRANKNESS
analysis that almost everyone in Wall Street has been
using for years.
You know the kind—long, tediously exact in its
statistical pomposity, filled with hedge clauses and about as in¬
teresting as a dried herring.
So we tried something different for
a change—and it worked.
Here it is!
We
out
sent
attractive
mailing
a
an^
on
card
This
card.
he
was
as
follows:
J
about $3.00
Standard Statistics reports 1941
share.
7
.
Good peace time outlook.
Detailed
analysis will
mailed on request.
be
ities
say
6%. This
that people are
shows
interested
in
buying
secur¬
all that anyone can
despite
to the contrary.
Then
the analysis.
to
came
we
In the upper
left hand corner we
stated, This analysis has been pre¬
pared
special
Doe, date—
Mr. John
we
request of
Next
the
at
wrote
foreword like this:
a
Preface: This stock is a spec¬
ulation,
if you can't risk a
possible loss, we don't think
you should buy it.
We think
that a good
speculation, how¬
is oftentimes better than
a
poor
investment.
It is our
opinion that this is one of those
cases.
When you read the fol¬
ever,
wrote the
have
for
purchase
the
we
not infallible.
are
been
careful
as
We have
possible in
as
of
made,
but we can guarantee nothing—
especially when it comes to
opinions in times like these.
Now we will tell you why we
checking
the
the
up on
statements
we
like
accuracy
have
——-
a
figures
We
out.
way we would
friend.
When
to the end
(and the
filled
Jhree
report
we
asked
com¬
long
consisted
possible.
They
following:
What
buy it
you
risk
and
sibility
less
our
do
you
so
of
the
for
outlook
this
condi¬
wartime
under
tions?
How about the labor
tax¬
ation
it might effect this
future earnings?
com¬
is
the
situation?
for
What
outlook
assume
we
your own
no
How
their
is
strong
like
We feel
it
a
as
speculation.
that you realize that
sure
it costs money to run a
to issue reports such as
business,
this, and
to conduct the necessary research
which makes such a report worth¬
while.
that
For this reason, we
should
chase
ment?
will allow
decide
you
might be expected of this stock?
What
is
their
condi¬
financial
tion?
How
near
are
dividends?
These questions were placed in
the
center
of the page.-
briefly and
we
as
as
ample, on the
situation,
can
the next
these
tell
us
Then as
possible
As
gave our answers.
labor
one
simply
an ex¬
question of the
said: "If any¬
we
where
and
when
strike is going to hit in
days and times,
we
believe
of RFC
at the end of
The
better
as
earn¬
ings continue to increase and fi¬
.
...
.
improve.
falls
in
this
its earnings have
sharp increase, its
financial
position has been
strengthened and its entire out¬
look is for relatively large profits
so long as the war lasts.
Net in¬
in
come
the
a
of
1941
$10,557,000
since
largest
within $3,000,000
year's level.
1929
and
was
of equaling that
it be thought
Lest
good
Gross Revenues
1941
$142,438,000
V
114,266,000
V
1940
along—just in
think-
1939_
a
to
V
H/
is
not
.
on
just
additional
bonds have been
while the
needed
produced
items
f
in
or
taxes
" liable i> for :
6.95
0.13
12.53
0.93
6.56
0.08
8.41
0.62
will
naturally
While
;
at
offers in¬
creasing likelihood of debt reduc¬
1941, the rate increases
recently granted will produce
tion
about $7,500,000 on an
nois Central issues
basis.
ing:',
through market purchases.
the more attractive Illi¬
j
vv
.
.:.;_;-_''7:':,77'7 J-
1953
Purch.
_*
W-
__L—rl
lsr3%6,~1952
Lines
Coll. trust
i
-
Term,
&
1st
3V2S,
195—
Joint
1st
ref.
—I—
4^s, 1963
.
1963
Chic., St. L. & New Orleans jt. 1st ref. 5s,
steadily ris¬
'
-
_
:
'
8.9 Co
45%
.8.8
•
A.
"7:7
-777, 9.3
47%
8.4
56
6.2
48 %
10.3
43%
10.2
45%-39%
4 8%-42
;
ors
are
becoming
interested
surprising
that
feels
to
comes
the
at
a
picking
as
always,
vestment
that
fund
Nor is it
average
loss
when
specific
It is
the
serves
in¬
it
issues
just here,
mutual
in¬
its purpose
—selecting
and
maintaining
a
properly diversified portfolio. The
chief difference between this sit¬
uation and the ordinary one is
that,
where
curities
vestor
are
Latin-American
concerned
the
se¬
in¬
knows that he is not in
position to do his
whereas with
most
own
a
selecting,
securities the
seems
to
think
does know what to pick.
that
he
The
tee
44%-37%
Money
made
the
smaller
belt,
had
inquiries
in
is
in
the
time
had
at
any
10
years.
he
farm
received more
recent months
previous
than
the
he
as
he
,
in
money
as
are
consequence
a
and
benefit
of war
payments,
looking around for places to
invest
such
funds.
::
■
'
Commit¬
Stephens at Car¬
Harry Engeman at Pershing
•: vT■
attractive
issued by
booklet
has just
Reichart & Com¬
New
Cam¬
paign," discussing the current sit¬
pany,
York
Inc.,
165
Broadway,
City, entitled "Spring
investors are uation in Prudential 6% Converti¬
really be per¬ ble Debenture Bonds. These bonds
forming the worthwhile service are particularly interesting, ac¬
from
a
national
standpoint
in cording to the booklet, because of
present circumstances, and at the a growing degree of security from
same
time gauging the situation the increase in net income before
correctly for themselves.
taxes, the rate of which increase
was
almost doubled for the year
He found that the smaller
the
banks
dealers
around
back
the
reach
who
ate-sized
money
and
who will
ones
those
Presumably people in the farm
areas, feeling the impact of more
James
are:
been
large Iowa dealer, interviewed by
representative of his New York
correspondent firm on a swing
through the Middle West.
This dealer revealed that,
located
Cohan, Pershing & Co.,
Prudential 6s Attractive
swing, came back convinced that
the
firms
who
seek
out
the
a
10
Vicar
48%-40%
•'
who
banker
the
at
*
& Co.
V«
(Continued from first page)
dent from the experience of one
demand
investor
Reporter's
Club
56%-53
.■
Dealers Made
Our
Mass'* at
Delegate
Right Reverend Msgr/ Francis W.:
Walsfy LL.D., will Ideliver an' in¬
teresting address.
;
Of ficers of .the Anchor Club are:
Joseph £. Redpath; Content, Hano
& Co., Chairman; Joseph A. Costa,
L. R. Rothschild & Co., President;
An
in
the
at : which
a.m.,
ing regardless of the rest of the
market and that American invest¬
will be
Breakfast
Athletic
downtown
and
54%-4 8 %
V
York.
following
Jacquelin; James G. Cun¬
ningham at Laidlaw & Co.; Am¬
brose
Verliij at Lehman Bros.;
43%-38%
•
New
held
lisle &
45%-39%
'."V
8.3
42
.•
54
4s, 1952
Louisville Div.
'
45
_
-
of
Members of the Ticket
*
1942 Range
% Return
Church, Barclay
Street, New York City, at 9 a.m.
on
Sunday, March 22, 1942. Mass
will be celebrated by His Excel¬
lency, the most Reverend J. Fran¬
cis A. Mclntyre, Auxiliary Bishop
Vice-Chairman. -i■
the follow¬
are
mass
Peter's
St.
Edward J.
Among
Refunding 4s, 1955
:
Anchor Club of America will hold
that freight receipts rise 15%
Mkt. Price
regular order.
its ninth annual communion
that
argued
of RFC debt and
';;;r
conferences
interested
V .The Wall Street Branch of the
over
annual
increased
companies.
of
Wall St. Anchor Club
junior rail issues .should be held
as investments, the benefits now
accruing
to
the "• rails
become
cumulative so long as traffic con¬
tinues ; on, : the
upgrade.
This
cumulative effect not only shows
up in earnings protection for the
secondary liens, but improves the
financial position, hastens retire¬
ment
series
v
„
not
the banking
ago
rendered apprehensive
insurance
a
the
not
of
record
1926
is
months
of firms
area.
parties cleared
air, and heads of several of
the major insurance firms made
it plain that such competition was
.
ap¬
$7,000,000
an-,
Stand-,
Poor's, if it be assumed
it
largely
the
Profits
$17,150,000.,
•
into
To Hold Communion Mass
Excess
the
proach
issue,
excursion
direct
$6.95
$56.65
normal
of
was
among
Earned per Share
Preferred
Common
;
Northwestern
Louisville
consisted
But
picture since 1937:
k-
bid
eastern
tabulation shows
The following
:
«.
of
by the vigorous competition then
being encountered from the big
/-
the earnings
field
Some
sible that net in 1942 may ap-
v
decision
world
Approximate
4S
1,
i
•
in the Louisville
by these plants and can¬
tonments.
7
-
are
to
it
V. Taxes, and it is entirely pos¬
According to
Although
•
competition.
The banking group against which
The in¬
continues.
war
of
ment
f
offset the,
amount
The
creasing number of defense and
military areas covered by the sys¬
tem will tend to intensify move¬
,
here
Refunding 5s, 1955
these circumstances Latin-Ameri¬
can
be
to
1,960,000
in
.which
wages
to
bid
Mutual to participate in the com¬
and these all are expected
carried in
large volume
paper,
1.12
charge
fixed
about
firm's
r
'
'
the
1.14
prevent much of a
estimated
•
surprising that under
*'
coal, lumber, iron and steel, build¬
ing
products, v petroleum
and
1.07
the increased freight rates
.should
comparable
a
points better than that of
first
wide margin the
24%, and from
up
issue
the
coupon.
insurance
the
1,223,000
in1.67
In February, traffic
1.75.
to
was
ard &
,
out. to
the
its
2,336,000
creasing somewhat; from
Investment Trusts
,
Worked
3^%
for
able that the road will not be
did succeed
coverage
for
par
marked
bet¬
gain
the
Com¬
other bidder,
it
offered
the
a
8
for
only
carrying
was
100.07
But when
Northwestern
petition
1.08
proximately
.
the
group
Insurance
important
reduce net income, it is prob¬
carrythrough,
:
nually.
volume.".
Other
income.
1,297,000
,
although higher wages and a
71% advance in tax accruals
might consider trying it?
increased
the
of
Life
of
3%s.
freight classifications include soft
farm
1.65
for Class I roads, and
average
exaggerating.
(Continued from Page 1135>
bid
opened
basis,
prospective
increased 32% in >:■,
1942,
tering by
think that you too
you
bid
company
particularly in view
higher levels of
earnings,
of
$10,557,000
114,016,000
'
January,
by mail in times like these, how¬
don't
to
Times Earned
;
105,416,000
Revenues
When you can open new accounts
ever,
the
*
Net Income
...
111,371,000
;
1937
'might
case someone
were
we
___
1938
hesitate,to pass them
we
as
is
early.
race
principal freight items. the;
banking
group,
setting
a
Such agricultural commodities as
spread seldom equalled in the
corn,
wheat, flour, cotton and business.
V
J
/
'
fruits and vegetables should con¬
First Effort By Company
tinue to be important contributors
Fixed Charges
Year
The results of this.mailing were
so
bonds
two
one or
came
that Illinois Central is among the
pur¬
Co. '
a
the
was
the road is not
since
category
tended
&
submitted
pany,
diversified, and consequently
dependent on any
well
that
underwriters,
private banking
Mutual
due
Central
Illinois
Corpo¬
with
•
,
Central
Illinois
truly,
Blank
.
One
May, 1944.
of
Traffic
become
to
„
to
nances
hope
to
which
notes
Finance
withdrew from the
before 1951 is $37,000,000
quence
submitted
several prospective syndicates
total of $46,337,-
a
really
contest"
Tuesday.
contrasted
proposed
000, while cash items of $21,382,000 were up more than $8,000,000.
The first maturity of any conse^
given to
should reward the holder
to execute the order.
us
Yours very
in which to invest.
action
market
of
sort
What
bonds.
ration,
substantially in 1941,
assets
having increased
$18,000,000 to
"no
tenders
on
construction
position
financial
be
two
Because of controversy over
the set-up offered to the Re¬
;
attention
be
qual¬
ity rail issues, of course, offer
little in the way of yield or price
enhancement possibilities, but the
junior bonds, if chosen selectively,
of this stock that you
some
vestor
manage¬
more
will
road's
,
current
respon¬
Neverthe¬
Latin-American issues.
as
pany's
and
at
whatsoever.
we
It
the
is
company
railroad
of its
as
be
equi¬
1936, this record being consider¬
ably better than those of many of
the so-called marginal roads.
-
give
you a sound basis for the purchase
of this stock but we say again, if
ourselves what
frankly
level
best to
Conclusions:
We have done
—
the most interesting
1941
ragged roads, it should be
pointed out that fixed charges
have been earned regularly since
$624,000,000 long-term dol¬
aspects
lar debt in the 1935-1940 period.
of this company's present position.
When we discovered that there Impressive thoftgh such examples
may be, nevertheless, both offi¬
were
about seven questions that
cial and unofficial repatriation by
we
could answer very favorably
private and governmental pur¬
we set those questions down and
chases may now be expected in
we answered them as
were
and
more
should
stock.
common
Next
to
the
common
more
this
of
stock, remember, we are human,
left
thing the
talked
on
reduction in dividends
a
registered
balance
accounts,
were
ex¬
•
sheets of analytical paper) we put
in this clincher.
lowing reasons we are present¬
ing
folderol
plete
(Firm Name)
has been
statistics,
income
ties,*:
harmonious
on
ceptionally good, etc., etc.
and
labor
We profess
Nevertheless, this
employee relations
we came
The replies were over
certainly
neither.
sheets,
Company has millions in war or¬
still
professional
a
Houdini.
a
Complicated
earnings should exceed $4.00
ders.
or
company's record
(Name of Stock)
per
either
to be
'
Current market price
is
leader
earnings
The
improved
Corporation
„
to
out
the
opened
were
bonds3>
in most of the better known
of security
one-half letterhead size and read
railroad
far- below
and force
became tired of writing the usual sort
we
reduce
stocks
IN WRITING SECURITY ANALYSES
ago
junior
probably offered as good a bet for
longer term holding: as did the
Government category.
% Since the proposed new taxes
will
Several weeks
when
ranging between Government bonds on the one hand and the ob¬
viously speculative group on the other; since prime corporates were
selling to yield little more than Governments, the difference in
yields were hardly worth the risk.
At the same time, it was pointed
NEW YORK
120 BROADWAY,
turned
Last week we pointed out that the bond market offered
very
little for the individual investor to choose in the investment
groups
ARTHUR WARNER & CO.
Tel. COrtlandt 7-9400
Transmission
Warrant Special Attention
Complete Statistical Information Upon Request
J.
Bidding for the much discussed
$3,850,000 issue of first mortgage
25-year bonds of the Louisville
the
investors,
last
year,
convinced
country,
their
to go to work.
Tables
made
showing growth of the
and
that
horses, and
because
convertibility.
their
of
company's
business, record of interest, and
growth of earned surplus are also
came
the
larger firms should get down
off
ending Nov. 30, 1941, and
moder¬
prepare
"
included^
Copies
of
be obtained from
Co.. Inc. upon request.
may
the booklet
Reichart &
...
Volume 155
Number 4056
THE COMMERCIAL & FINANCIAL CHRONICLE
NEW YORK
u
.1
.
I
,
•
4
.
,
•
'
•
.1
;
4,
-
>'
•
•
:
LIFE
:
lV.'
*
"
•;
INSURANCE COMPANY
'
'
«i
■
.
•
,
L
y
97th Annual Statement
^
•
i
■.
•
'< K,'
to its
which
are
the throes of
a
these responsibilities and these
the
country's
a
war
economy.
All of
all of its
resources,
preserve our
our
institutions,
our
The
four
freedom,
upon
pany
com¬
:
the
*.:XV■;
insurance company has
life
a
primary
re¬
sponsibility to its policyholders
to
a
to conduct its affairs
pany
that the
so
ries with it
a
car¬
one,
so
war
as
or
of
conditions. The
war
was,
one.
believe,
we
words.
The
reserves
tions
were
In
a year
these
as
for action,
circumstances
economic, social and individual—
1
cies
a
Corm
a
reappraised
on a
were
result,
more
brief
as
possible.
complete report
as
of
December 31, 1941, containing addi¬
tional statistical and other informa¬
tion of interest about the
Company,
then
will be sent upon
request.
con¬
the bonds and the guaranteed and
against
A list of
preferred stocks owned by the Com¬
further strengthened, its
were
the funds held for
the opportunity ;
hazards—
A
Company's contractual obliga¬
real estate and mortgage
and
The year 1942 is
today.
course
the present
*for service. On the contrary, because
-of the uncertainties
strength.
of action in the light
devastating
responsibility to protect
policyholders
course
the
does not lessen in the slightest
either this
the
a
pany's
servative
service to the public at large."
and extensive
Company which accompanies
this report is made
less
no
which
economic
this report continues to reflect
great
those
We must do
a war
it inevitable
not
determined
great opportunity for
War, particularly
the
time, when
the' Company considered the
added: "The
we
with
The Statement of Condition of
in
declaration of war, the Directors of
obligations to
discharge of that responsibility
This is important now that
needed, it aided in the financing of
wars.
pro¬
policyholders them¬
strains and future adjustments.
Early in December, following the
policyholders and beneficiaries when
they fall due." And
the
country is engaged in
carries
policyholders and to the country. It
safeguarded its assets, it met its obli¬
same
of
com¬
will be able promptly to meet
all its contractual
selves.
our
During each of these conflicts
to grow
materially
strength of the
Company and to the long-range
in which the United States
gations, and at the
invest the funds of the company and '
the fundamental
tection
usefulness and service, both to the
A year ago we said in our annual».
report: "The management of
greater, not less.
Company continued
;
This action has added
to
Company has lived through
wars
War.
and the responsibilities of man¬
agement?
to such
War Between the
States, the SpanishAmerican War and the First World
every
of us, affect a life insurance
are
'
involved—the Mexican War, the
was
independence. How does this
obligation, which rests
one
inevitably incident
opportunities
man
be devoted primarily to
the winning of the war if we are to
•
war,
■
Policyholders
The year 1942 finds this country in
power must
p.
*
1139
loan assets
pany
is also available. These booklets
may
be obtained by writing to the
New York Life Insurance
strict basis, and
51 Madison
general contingen¬
Company,
Avenue, New York, N. Y.
substantially increased. As
a
smaller amount of divisi¬
ble surplus was available for the
pay¬
ment of
dividends for the year 1942.
President
STATEMENT
OF
CONDITION
# December 31,1941
ASSETS
Cash
on
hand
or
LIABILITIES
in banks.
$82,408,832.50
Reserve for Insurance and
Bonds:
Contracts
Annuity
$2,407,683,152.00
;
United States Gov-
Present value of amounts
ernment, direct
or
fully
guaran¬
teed...
Policy Claims in
Municipal..... 250,425,203.23
1,066,475,936.01
Railroad
or
incurred but not yet
reported...
Dividends left with the
Industrial and
Premiums, Interest and Rents paid
Other
04,844,117.27
Canadian
87,572,306.07
First
Mortgages
285,604,325.87
Other
$14,102,000.00
78,726,884.02
Interest and Rents due and accrued.
92,918,884.92
27,850,040.64
ties.
policy
..
\
.
Other Assets
5,584,803.45
Dividends payable
during 1942....,.
;
3,500,000.00
$2,799,329,529.16
re¬
31,748,518.50
295,620.84
Of the Securities listed in the above
statement, Securities
valued at $44,350,359.18 are
deposited with Government
required by law.
The New York
1
and is
0,726,525.78
Total Liabilities
i
as
30,583,660.00
Foreign
Miscellaneous Liabilities
Surplus
Funds
held
contingencies.
for
general
••••••••••••»•
$2,987,268,732.05
State authorities
of
Currencies*
Premiums not yet received but used
in the computation of
serves
130,310,435.09
13,625,731.88
Reserve for fluctuations
Properties.
10,831,350.90
Reserved for other Insurance Liabili¬
416,284,810.77
Real Estate:
Home Office.....
Company...
in advance
83,402,753.00
Real Estate....
on
Policy Loans and Premium Notes..
f
187,483,779.16
of settlement,
process
280,303,685.45
Public Utility.... 350,470,018.70
Stocks, preferred and guaranteed
or
yet due
Supplementary Contracts
on
$887,7G1,424.30
State, County and
.
not
187,939,202.89
$2,987,268,732.05
*This
tween
are
reserve
is held
chiefly against the difference be¬
Assets and Liabilities which
Canadian currency
carried at par.
Life Insurance Company has always been a mutual company. It started business on
April 12,18^5
incorporated under the laws of the State of New York. The Statement
of Condition shown above is
filed with the Superintendent of Insurance of the State of New York.
in accordance with the Annual Statement
'
'
•
*•
V
THE COMMERCIAL & FINANCIAL CHRONICLE
1140
Established
14
Stock
Exchange
Curb
Exchange
Cotton
Exchange
York
New
York
New
Board
Chicago
And
$1,061,000,*000
Although the month's total
of all offerings represented a de¬
cline
YORK
NEW
of
7
CHICAGO
BOSTON
DETROIT
PITTSBURGH
of
amount
offer¬
$1,042,000,000 for the year 1941.
Commission
The
;
„
the
from
in - December, 1941, which
aggregated
$2,319,000,000,
it is
higher than the monthly average
ings
Bldg.
N. Y. Cotton Exchange
survey,,
GENEVA, SWITZERLAND
the
of
the
prepared
and Statistics
Research
the
that
states
which was
division
by
Sub¬
Trading and Ex¬
Division,. covers all new
and non-corporate is¬
change
corporate
sues
offered for cash that are re¬
case
NEW YORK CITY
of
less
than
one
Commission's
"
v
were
Exports—Imports—Futures
1
;
says:
4-2727
fense
...
with 7 receipts
Bonds,
creased.
Walter
of
*
are
-•
frequently
•
T
-
'So
far
the
as
.
rallies
almost
ule.
came
issue
One
30,
"
•'
-
Bowman
Unpaid S.S, Tax
Entitled To Priority
§#
Claims by the Federal Govern¬
for
ment
unpaid taxes under the
old-age section of the Social Se¬
curity Act have priority when the
of
assets
bankrupt are divided,
according
to
a
ruling
of
the
U. S. Supreme Court on Mar. 2.
In its/advices. from
Washington
regarding the ruling, the New
Directed
others.
by
Van
Fred
Heflin, Marsha
Zinneman.
...
Hunt, Lee
A pleasant
enough mystery
yarn that takes you back among the laboratories
criminologists perform involved chemical experiments, peer
through microscopes and do other equally interesting things to catch
the culprit. The young genius in this case is blonde Van Heflin who
spends his time (when he's not scientific-ing) in either throwing
darts or aiming mildly insulting remarks at his pretty young as¬
sistant (Marsha Hunt).
Of course, even the elementary movie goer
where
knows that such remarks
made
merely to cover up Van Heflin's
Van Heflin is on the trail of
He pulls in politicians, radio com¬
mentators and a lot of other guys named-Joe. But despite all the
experiments not one of these turns out to be the murderer. Of course,
no one except the audience suspects who the culprit is.
But it can't
talk and no one in the picture does, otherwise the whole thing would
fondness for Miss Marsh.
the
be
Holds
and
In any case
who killed the Mayor.
man
over
are
in the first 15 minutes and where would you go then?
the same, "Kid Glove Killer" won't strain; your credulity too
The acting is capable and after all what more can one want?
Just
much*
.
.
If in your movie travels you run across
such shorts as "This Is Blitz"
and "Churchill's Island," drop in and see them. These are actual war
shots.
There is no softness about them.
They are cold, horrible in
their realism and will do more to bring the war closer to you than
all the fiery speeches. According to the caption more than 20 camera¬
men lost their lives in taking the scenes.
After seeing the pictures
you will agree that is no exaggeration^
' :
-
a
RESTAURANTS
The Penthouse Club (30 Central Park So.) is more than a letyour-hair-down-night-club-kind of a place that previous articles ap¬
pearing here may have led you to believe.
Its food and its service
York "Times"- stated:
can compare favorably with the best in the city, not to mention other
Justice Byrnes delivered the advantages. An open fireplace, cheerful these cold nights. A splendid
unanimous opinion in cases by view of Central Park from its 16th floor penthouse, and Mr. and Mrs.
the United States against the Stone.
Mr. Stone, in case you don't know, used to be one of the top
In fact, he and the Erie used to be
a State of New York and affect¬ dogs in the railroad business.
ing $3,053 in assets of the Inde¬ just like that.: What ever turned him into a bistro boniface you'll
pendent Automobile Forward¬ have to find out for yourself. In any case that's what he is today.
r
.
-
ing Co.. of Buffalo which is in
liquidation.
The Federal Gov¬
/
laid
ernment
claim
for
Social
Security taxes, and the State
unemployment insurance
v-
for its
fund, but the available reserves
were
not sufficiently large to
ac¬
Stone, while apparently not a "greeter" by nature does well
enough by just being there and what with the AWVA uniform she
cuts quite a picture. Of course, Mrs. Stone assures me that the uni¬
form is more than just becoming. It is a symbol of a hard job done
during the day when this reporter is either pounding his ear or this
typewriter. ,
I'm still; curious, however, about that knapsacklike
Mrs.
pocketbook that AWVA's wear slung over one shoulder.
.
.
If .you
both demands. *.*
^
i don't Tike taking elevators to top of buildings suggest you try a newiiii'-'As
its
authority,
the
Supreme
place,
Chateaubrand
1(148
E.
56th).:,It;
is
a
pleasant
place,
owned
and
Co. 3V2% first mortgage ijonds,
Court
turned, .to the - case ~ of run by three brothers.* One of the brothers (I wish I could remember
due 1972. ' Flotations of indusrhis name) said that the place was a favorite with gourmets.
/ New York; City against Feiring,
That
trial
companies accounted for
•in which the highest tribunal may be but I don't know any gourmets and those that claim they are
$44,000,000 during the month.
seem to think that a couple of ooh's and a-ah's entitle them to thai
Railroad
and
other
miscel- •r. held that a city sales tax must
.have priority, being a tax claim distinction. Me? I'm strictly a meat and pertaters guy. ,;;0
laneous issues declined to $ll,r
proceeds-r—the
of gross
•
Alabama
: meet
;
Power
,
and not
000,000. Approximately 94% of
corporate securities were offer¬
ings
debt.
the
and
City sales tax
obligation imposed by
under the Se¬
the Social Security Act cannot
Act ;7 of
1933.
The
7 be distinguished in any mate¬
of registered securities
curities
sched¬
a
"The New York
registered
amount
rial
respect," Justice Byrnes ob¬
"Tlje j claim 4 of
the
United States against the estate
MANHATTAN NOISES
That
.
.
I
band at the Hotel New Yorker,.
Woody Herman, keeps
Also boasts the best ice show in New York.
The things those kids can do on skates is amazing. . . . If
the place
.
new
jumpin'.
.
.
.
never seen Latin-American dancing on skates and better than
most can do it on foot drop in and see the New Yorker Hotel's Ice
since last
Capades.
Ella Logan's "My Bill".at the Cotillion Room always
"August. -Corporate
securities
of this bankrupt is entitled to
shivers up and down my back (hmmmm reading that back I wonder
privately placed amounted to
the priority."
if anybody cares). That smooth velvet voiced effortless singing of
$275,000, according to the pre¬
f Reversing -the
Second Cir¬ Maxine Sullivan at the Ruban Bleu keeps listeners' palms sore * . .
liminary reports available. This
cuit Court of Appeals, Justice
they applaud so much..... Also the guitarist singers, Rasha and Mirko
represents the smallest amount
Byrnes upheld the lower bench at the Ruban Bleu. v..
T-he Gafe Pierre? which used to be the high
of corporate private placements
in rejecting a claim by New
in
spot is slowly but surely coming back. ,f, . Betty Bryant is one of
any
month since October,
4; York State that only 10% of the reasons and Bert Allerton with his bird trick is another.
.
1934, with the exception of one
the Social Security claim was
Has a bird in a cage and presto! it disappears .;. . cage and all. .
monthly period.
*
: 744v-i;'4:>
allowable.
.7
At Billingley's Stork where Bob Knight's outfit plays for cocktails
-4': Of estimated net -proceeds
offered for cash was
$154,000,-.
lot of
questions. And besides with
all the money a short seller
has to put up, where is the
answer a
percentage?'
you've
served.
000, the highest figure
scared to death the SEC will
to
Killer (MGM), with
Glove
.
anybody takes a
position
today
he's
call him up
Kid
.
But if
short
V
MOVIES
.
and
occur
on
;
June
on
the American peo¬
given in these columns, page
was
1045.
Two-thirds of total corporate
$109,000,000.
>?•
said
He
ple are dedicated to the task of
winning the war, whatever the
cost may be, and added that the
country is strong enough to bear
it.
His
testimony included the
same prepared statement read to
the House Ways and Means as
f
counted for $81,400,000
theory is concerned all you
have to do / is ask yourself
"oversold by who?" ' In the
days when markets had hair
t>n
their chests enterprising
shorts took positions and out
of
such
positions oversold
did
$110,400,000,000
1943.
companies, which amounted to
"oversold"
conditions
be
offerings were issues of utility
_.
*■
;
of
$118,000,000 being the largest
total in 10 months,
(Continued from Page 1133)'
They
average
$210,000,000 for the year 1941.
State and municipal offerings
also
increased, with offerings
Whyte
the last.
the
October,
since
but were below the
Says
clines.
offerings in-
$164,000,000,
to
r
amount
largest
'
bill, Secretary of
Morgenthau pre¬
dicted that the public debt would
restricted to sales of De-
Corporate security
-
Treasury
13
.
reaching* the highest level of
any
month since offerings of
these bonds have been made.
—
Tomorrow's Markets
announce¬
' V '
Offerings for cash by the
Government (excluding Treas¬
ury bills and Tax Series Notes)
ment further
DIgby
the
March
on
of debt issues, of a
The
SUGAR
and, in the
maturity
year;
^
Committee
in behalf of the
amount
in
$100,000
STREET
WALL
the
$130,000,000,000, the
makes
Finance
ported in the financial press, with
the
exception of issues
under
LAMBORN & CO.
99
expected to con¬
six
changes in the
Treasury's financing authority. \
In testifying before the Senate
S. Defense
including U.
000,000,
Exchanget
other
bill
Bonds to the extent of
Cotton Exchange
Orleans
New
debt limit to
amounted to $1,345,-
January
is
•
Inc.
Trade
of
7"
in the United States by all
issuers of securities for the month
of
House
in the change....'
V
;
In addition to increasing
cur
ing
Exchange,
Commodity
The
and 'Exchange
announced : on Mar.
that the volume of new financ¬
Commission
Membert
York
New
and Under Secretary of the
Treasury /Daniel Bell said the
Treasury had no objection to it.
Securities
The
H. Hentz & Co.
Thursday, March 19, 1942
Va.)
January New Financing
Mostly Defense Bonds
1850
:
.
.
.
.
•7.
*
■
❖
*
•
So
...
having told you that
nothing in the imme¬
diate market picture to jus¬
tify any real market rally I'll
promptly proceed to add to
your confusion by saying that
signs of some kind of a turn
are
present. What these signs
are I won't
say, assuming that
,
there is
I
could
describe
them,
raised from new
in
tations
.7
corporate .flo¬
January,
Plead Guilty In
$89,000,000,
*
55%, ] was... intended
for
repayment
of
indebtedness,
or*;
'
chiefly ' accounted for by the
Alabama Power. Co'. * refunding
4
Fred
Fraud
Ernest - Ingalls,
Blaser,
Isidore Koota, David Koota, Saul
L. Rubin,. George
A. Liebman,
satin
surprising at the number of newspaper names
Waking hours either in the Cub (that's the
Stork Club's baby) ("come to think of it since when do Storks have
.-
smooth
as
.
J
.
who seem to spend their
cubs?) (or in the Stork Club proper. . . 7 And Sherman Billingsley
going from table to-table making hello noises, . v . Passed me right
by in spite of fact that Claire Piccard, the blonde with hair down to
Benjamin Rabinbwitz, George T.
issue,
"New money" .purposes
her shoulders/ whose picture hangs on the Cub room wall, was at
Friedland, Ira R. Newell, Harry
r—additions to plant arid equip¬ V. Blum and H. V. Blum &
Co., the same table .-.,... tsk-tsk-tsk such is fame. \ . . If you want to
ment
and
working
capital-^Inc;, pleaded guilty in,- the Fed-^ see some of ybuf favorite radio7people and how they look when
were
expected, to absorb .44% eral
Court
for
New. York
to
they're.putting:on the feed-bag, drop in at the Mayan Restaurant*
of net proceeds, or $71,000,000.
charges of mail fraud in a case
one of the/Rockefeller City, restaurants.
All your illusions will go
•Industrial, railroad and miscelinvolving the alleged sale through
laneous
other flotations were
:v;
.•
r>;lyj.
•.,
.v;,-; > . ;\
false representations of $300,000 bang!
almost, exclusively npw capital
in stock; in the National Printing
issues. v
: 7;47v47>'
r
but
,
here
and
there
-
stocks
poke up against
that are making
age to
ages
lows.
*
man¬
aver¬
.,
""
new
.,
.
Appliance Corporation, an organi¬
If the little lift doesn't
too far and if the sub¬ Senate Raises Debt Limit
sequent retrace
(downside)
carry
To-$130 Billion
holds above last week's lows
rThe
Senate
on
March
17
by
ing
ing
printing matrices.
Sentenc¬
was deferred to the.end of the
a
trial/
voice vote passed and sent back to
I know I gave you
the House a: bill increasing the
lot of "ifs" but the whole •Federal debt limit from $65,000,-
three
the basis for
rally will have
a
.
been laid.
a
•
zation to promote the manufacture
and sale of compound for clean¬
market,
the
whole
picture,
national
and 1 international,
consists of nothing but if's.
.
#
More
*
next
"■
[The
article
time
views
do
not
coincide
Chronicle.
*
.
.
They
are
in
this
of
any
the
presented
...
as
..
tti f t i f ru t UM iJ
issue
12
was
Seriate /adopted
an
charges.
same
Decision
Simon
The Penthouse Club
30 CENTRAI. PARK SOUTH
H.
was
*
1
reserved by Judge
Rifkind
motion
»*'
to
on
a
Adjoining The Plaza
THEODORE'S
4 E. 56th ST. PLaza 3-6426
Govern¬
consolidate
for
noted in' dictments which named the same
1044). defendants.
'
' '
V
amend¬
would be included in the national
debt limit
This amendment~was
Interesting Situations
Arthur
Broadway,
Warner
&
Co.,
New York City, have
prepared for distribution interest¬
ing
statistical
memoranda
on
General Machinery Co., Hooker
sponsored by Senator Byrd (Dem.,1 Electro-Chemical Corp., Metal &
LUNCHEON
A
$1.25
Superb DINNER $1.65
Excellent
Hors
D'Oeuvres
&
Desserts
a
most
unique restaurant in
beautiful location,
overlooking
Central Park to the north.
Open SUNDAY AT 5:30 P. M.
t
JL20
-
..
the-purposes of the trial two in¬
J
,
had from them upon request*, >7
seven
page
recommended by its Fi¬
nance Committee, adding $5,000,000,000 to the House limit so that
the obligations of all Federal gov¬
ernment guaranteed corporations
Corp., rand Nicholson
Co.,. copies of which may be
other persons and
corporations are to be tried
as
the
ment
File
ment,
Whyte.
those
those of the author only.]
(as
March
The
necessarily at
with
$130,000,000,009. " As
$125,000,000,000
our
expressed
to<
passed by the House on March ,10
the measure had a limitation .of
.
Thursday.
—Walter
•000,000
on
Thermite
V
.
*
"
MAXINE
After
*
sft
SULLIVAN
11
P.
Serving
best
food,
skilfully
prepared.
M.
i
LE RUBAN BLEU
Telephone PLaza 3-6910
t
ANNUAL
STATEMENT
THE
FOR
THE
YEAR
.
;
r
STATEMENT
v/;'6"'' '*'■ '*/"' -^
Net
sales
___
Miscellaneous"
...
OPERATING
"
of
♦Taxes
.
(exclusive
ditures
drilling costs
incurred
wells
on
on
pany
has since January
capitalizing
f except
drilling
earned
of
costs
costs
at
the
producing
amortized
:•
''
..V'
,
#v
.
'
--1'
*:■"
*• '•
.
(NET):
dividend, patent
laneous
charges of
••••
■■,
.v.-
-
-•"/K '*>'■
••
Adjustment of depreciation of
■
:
a
-'A?
12,933,594.94
\.}i
,
Other
•"'
*
of
interest
discount
and
if" >;
303,833480.37
V
<
3,010,516.58
i-
'
■
—
leases
and
forfeited—
Balance
'V-,
DEDUCT:
—
J
1
V
,
'
—_
-
$
L-
before provision
profit
taxes
for Federal
income
income
■
f
51,874,681.29
1941
V
'
27,189,500.00
V
STATEMENT
.
excess-profits '
and
and excess-profits
CONSOLIDATED
capital
7,000,000.00
.
$
Federal
*t..
$152,955,094.52
CAPITAL
OF
SURPLUS
ACCOUNT
surplus.
december
31,
1940____
$
69,887,090.72
non-
— _______
for
r
74,899,666.34
/""•
for additional reserve for possible loss on investments^ In
subsidiary companies operating in foreign countries
1:——i—
Net
it
'
3,469,387.12
31,393,288.75
6,645,857.47
Provision
DEDUCT—Provision
V,
$106,292,955.09
•
'-fX'--:
'
»
$ 24,747,431.28
——
___.
during
(Including earned surplus of predecessor company)...
'
^___11—.—
declared
SURPLUS, DECEMBER 31, 1941
'
V/
■
EARNED
DEDUCT:
Depletion
.
$109,762,342.21
'
expense* on
*
31, 1941___„_________
'
$180,144,594.52
charges___—458,870.54
Balance
$128,269,913.23
\
DEDUCT—Dividends
$
■
w."
■■ ■./.:'
: :•
Depreciation and other amortization—,.
522,283.73
8,251,878.77
.__
____
!
_
'
f
_______
•.
>' L,;..
■
and other income, less miscel-
amortization
debt
»■
subsidiary for prior years
.
$1,261,846.32———_______+.T!I.-..Tr~'
CHARGES:
and
funded
$127,747,629.50
A
if
Balance
Interest
_
CREDITS:
•■■
'
INTEREST
1^;
___
;
$101,510,463.44
Interest,
.
.
ACCOUNT
"...
surplus, december.31, .1940
V
NET PROFIT FOR THE YEAR ENDED DECEMBER
NON-OPERATING INCOME
"" '
J
SURPLUS
;;
;:
i
____1_,—
incurred.)
as
,'
SURPLUS
annum
per
EARNED
and
wells,
8%
of
rate
STATEMENT OF
.
(Including earned surplus of predecessor company)
■
'
on
during the year (The Com1934, followed the policy of
1,
'•:*
,
.
15,866,541.34
the costs of wells located in Illinois which
as to
fully
abandoned
such
amortizing
-
,
r
$405,343,643.81
J)275,033,044.09
producing wells, expendry holes and unamortized drilling
costs
are
v
«
___________
__
Amortization of
>
selling and general expenses
*
■
CONSOLIDATED
■■
.
depreciation and depletion)
OMPAN Y
!
9,350,580.12
,.■>
.
OF
1941,
.1
'■
$395,993,063.69
—____;IL—.
:
CHARGES:
operating,
Costs,
Ill'
———-
.
'
31,
(Excluding European Subsidiaries)
J,.I
ACCOUNT
INCOME
CONSOLIDATED
OF
GROSS OPERATING INCOME:
DECEMBER
06
TEXAS
AND.. SUBSIDIARY COMPANIES
;
ENDED
taxes————
deduct:
1
of
Excess
cost
of
additional
shares
of
subsidiary
a
67,899,666.34
acquired
15,830,000.00
from
minority
interests
value
date
during
1941
over
'
Net
their
for year 1941_______—$ 52,069,666.34
Profit applicable to minority interests in a
subsidiary——_^
'
194,985.05
•
profit
net
Net profit carried to earned surplus account
Reference
is
made
to
10 of
$
_—
♦In addition, state and federal gasoline and cil taxes
authorities in the amount of $120,564,117.50.
were
and
operations.
cost
of
stock
to taxing
acquisition
i
2,415.32
of
held
in
over
The
par
Texas
value
of
shares
194
Company reacquired
of
in
capital
1941
and
treasury—___— •— i_—_—
2,431.00
4,846.32
the report to
stockholders with respect to earnings
of The Bahrein Petroleum Company Limited, and to
page 20 relating to foreign investments
page
of
•>
51,874,681.29
paid for accrued)
at
'
Excess
L
book
CAPITAL
SURPLUS,
DECEMBER 31,
1941
$
.?(
69,882,244.40
....
CONSOLIDATED
BALANCE
SHEET
—
DECEMBER
31,
1941
ASSETS
LIABILITIES
.'^-CURRENT ASSETS:
/.:/'•
CURRENT LIABILITIES:
•*
Cash?In banks, in transit and
In
United
States
In
foreign
countries
Notes
and
Notes
r1"
hand—
on
$ 68,955,664.95
;
$ 72,380,348.89
$
receivable
465,828.31
for bad
Less—Reserve
debts_
Inventories—
and
:
.
refined
oil
products
the
on
market
than
ships for American
i
650,000.00
:
;
for
and
first-in,
40,856,508.62
1933
are
Treasury
25,957,435.12
______
Federal
income, excess-profits and undis¬
taxes (certain returns subsequent to
subject to final settlement with the U. S.
Department)
Less—United
merchandise, at
first-out method
—
and
supplies,
at
States
19,972, 486.61
Treasury
Notes,
Tax
Series
B,
15,000, 000.00
.
____.
cost
Dividend
payable January 2,
$ 87,034,408.45
11,905.261.78
—^
9,754,850.38
17,262,563.15
.
determined
Materials
are
tributed-profits
mental
\
$6,259,728.17
liabilities
Provision
(after elimination of intercompany and interdepartprofits) which in the aggregate was lower
,
J,
for additional
payable
Accrued
41,040,680.31
—_—
$ 41,506,508.62
cost
of which
$
receivable
Crude
contract obligations
Accounts
Total
98,939,670.23
current
4,972,486.61
1942
5,432,135.00
liabilities
$
63,379,470.24
'
Total
LONG-TERM
employes'
current
assets
$212,176,527.74
RECEIVABLES
stock
purchase
(Including
accounts)—less
$225,993.70
of
reserve
3%
$250,000.00
1,640,851.41
INVESTMENTS
IN
IN
OPERATING
AND
ADVANCES
FOREIGN
TO
COUNTRIES
20):
European subsidiaries not consolidated
^
COMPANIES
(See
notes
.V
(less
not
are
which
reserve
of
$
__i
i
1%%
DEFERRED
9,811,401.81
cost,
applies to
RESERVES
65,358,684.54
IN
OPERATING
NOT
ADVANCES
AND
THE
UNITED
SUBSIDIARIES—AT
applies
50%-owned
to
COST
TO
STATES,
WHICH
(Of which
companies),
For
ARE
For
$7,352,001.00
less
and
and
Total
depreciation,
depletion
PATENTS—AT
$1,669,954.73)
(Less
—
—
reserve
for
Prepaid
Outstanding
61,900,287.89
Capital
Earned
insurance
and
337,866,519.59
—
366,505,822.27
above
on page
v
$
,
15,621,467.34
20)
2,150,896.04
7,000,000.00
24,772,363.38
'
t'
608,215.48
,
r"
$284,656,325.00
10,875,800
par
value
shares—
r
12,761,325.00
$271,895,000.00
surplus
surplus
:
./
treasury, 510,453 shares, at
69,882,244.40
(including earned surplus of predecessor
152,955,094.52
494,732,338.92
taxes
in process of amortization
-
CONTINGENT LIABILITIES—Reference is made to page 10
of report to stockholders and notes on
page 20 with re¬
spect
of
$
72,663.38
1,613,118.80
2,520,526.28
to
General
certain
contingent
liabilities.
The
Company's
Counsel
ascertain
the
reports that while it is impossible to
ultimate liability with respect to other
contingent liabilities, including pending lawsuits, Federal
taxes, claims, guarantees, etc., in his opinion, the aggre¬
gate amount of ultimate liability in respect of such other
935,598.75
Other
contingent liabilities is not materially important in rela¬
5,141,907.21
tion
pany
\
liabilities
$704,372,341.86
amortization
incomplete wells
prepaid expenses and deferred charges
current
and
Drilling costs on
The
537,973.68
plans—excluding
employes'
in
company)
1,141,128.54
discount and expense
in
168,006,778.43
DEFERRED CHARGES
Bond
111,801,379.95
—j-—--—
AND SURPLUS:
Less—Held
105,050,774.49
2,714,153.77
amortization
—•
COST
included
14,000,000 shares
11,386,253 shares—.—
Issued
under
'.
for
under
;
foreign exchange fluctuations (see notes
contingencies
Authorized
;
ships
benefits
Capital stock, par value $25.00—
—
Less—Reserves
CREDITS
(As authorized by the Board of Directors):
CAPITAL STOCK
61,559,706.68
:
Ships and marine equipment (including
construction, $15,790,222.33)
Sales stations, facilities and equipment
Miscellaneous
SUSPENSE
STOCK
AND
SURPLUS
OF
A
SUBSIDIARY
COMPANY APPLICABLE TO MINORITY INTERESTS
tank farms
terminals
AND
5,051,379.95
CAPITAL
$305,140,640.60
lines
6,750,000.00
—
34,055,418.13
—
PLANT AND EQUIPMENT (At cost, except
properties of certain subsidiaries, which as of dates of
acquisition were reduced to values determined by com¬
pany and/or government engineers):
Lands, leases, wells and equipment (including drilling
costs of producing wells completed since January 1,
pipe
of
of
reserve
PROPERTIES,
Oil
INCOME
$1,440,000.00
COMPANIES
$1,300,000.00
Refineries
installments
75,170,086.35
For
IN
60,000,000.00
payable to banks in annual
$750,000.00 from April 29, 1943—;
subsidiaries—at
$63,797,546.04
50%-owned companies), less reserve of $28,000,000.00
INVESTMENTS
$ 40,000,000.00
notes
long-term debt (including $3,860,000.00 contract
obligations for additional ships for American flag fleet)
page
$5,300,000.00)
Companies
which
$93,358,684.54
(Of
Debentures, due April 1, 1959
Debentures, due May 15, 1965
Other
f.Y
on
'
LONG-TERM DEBT:
3%
$695,831,741.65
to
the
total
consolidated
assets
of The
Texas
Com¬
and subsidiaries
$695,831,741.65
foregoing balance sheet and statements are taken from th§ annual report, dated March 17, 1942 to stockholders of The Texas Company, and should be read in
conjunction with
such report which contains the certificate of Messrs. Arthur Andersen & Co., Auditors, attached to such financial statements.
A copy of the report to stockholders
may be had upon
application to the Company. The said balance sheet, statements, and report are not intended to constitute an offer, solicitation of offer,
representation, notice, advertisement or
any form of a prospectus in respect of any security of The Texas Company.
i
(including $7,512,219.86 due
receivable—
accounts
Accounts
3,424,683.94
■
Notes and contracts payable
in 1942 on long-term debt
"
'
THE COMMERCIAL & FINANCIAL CHRONICLE
1142
Thursday, March 19, 1942
Calendar of New Security Flotations.
mission
CORP.
TRANSMISSION
'( KY.)
(Ky.)
Corp.
Transmission
has
statement with the
Mortgage Sink¬
registration
a
for $3,850,000 of First
ing Fund bonds, due Mar. 1, 1967.
will
rate
be
supplied
Address—311
i
Interest
amendment.
by
Chestnut St. Louisville,
W.
Kentucky on
Dec. 2, 1941, as a subsidiary of Louisville
Gas
&
Electric Co.
Company will con¬
struct and own a 154,000 volt double circuit
transmission line from a point on the site
of the Paddy's Run generating station of
the parent company, near Louisville, Ky.,
(to a point known as Green River Crossing
in Hart
Cdunty, Ky, (approximately 67
which
line
mission
In
the
Tennessee
Valley
Authority will construct to such point from
Nashville
South
its
substation
(about
Tenn.
ties
the
at
stations,
with
with
and
system
of
Louisville Gas &
transmission sys¬
a
Service
Public
com¬
Co.
Indiana.
of
construction is to make
1,400,000,000 kilowatt
hours of electrical energy per annum from
such
of
Purpose
available to the TVA
Electric
&
affiliated
generating
transmission
lines
the
Co.,
electric
Underwriting
will be
rule
sold
of
and
four
non¬
companies.
Offering—The
and
under
the
TVA
the
bonds
competitive bidding
Dillon, Read & Co., New York
$1,222,000
Glore, Forgan & Co., New York__
700,000
City
A.
mers
C.
Allyn & Co., Inc., Chicago.
A. G.
Alex
Co., Inc., Chicago
Inc., New York
Brown
&
Sons,
be
>.
supplied by amendment.
Proceeds will be used to pay for the cost
of
the
above
construction
program.
Registration Statement No. 2-4948. Form
A1
Baltimore.."
Republic, Inc., Chicago
■;
R. S. Dickson & Co., Inc.i
.
,,
Charlotte, N. C.
Equitable Securities Corp., Newr—■
Bonds
Life
of
Insurance
to
int.
cost
Co.
basis
Mutual
Northwestern
March
17
to
bid
its
on
or
coupon,
of 3.125%
company
;>
list of issues whose registration statements were filed less than twenty days ago.
These issues
are grouped according to the dates on which the
registration statements will in normal course become effective, that
is twenty days after filing except in the case of the securities of certain foreign public authorities which normally
become effective in seven days.
!. These dates, unless otherwise specified, are as of 4:30
P.M. Eastern Standard Time as per rule 930(b).
Offerings will rarely be made before the day follow¬
ing*
a
•
ties
under
of
Corp.,
York..;.
450,000
Graham, Parsons & Co., Philadel.
Harriman Ripley & CO., Inc.,
50,000
:
75,000
share of new
75,000
of
200,000
& Co., New York..
McCormick & Co.,
.
■
Chicago
Hutton
Kebbon,
125,000
50,000
Kidder, Peabody & Co., New York
200,000
C.
W.
Langley & Co., New York.
Higginson Corp., New York-_
150,000
Lehman Bros., New York..:
Marks & Co.,
M.
Laurence
Merrill
75,000
Lynch,
Pierce,
350,000
&
&
& Sons,
Salomon Bros. &
Shields
75,000
New York___..___._.
Rollins
H.
75,000
Cleveland..
Co.,
& Co.,
SATURDAY, MARCH 21
CALIFORNIA DE-TINNING CORP.
California De-Tinning
istration
statement
Corp. filed
with
the SEC
000 shares of $1 par common
•
a
for
reg¬
234,-
stock
Proceeds
Address—Los
Angeles, Cal.
Business—Company is
engaged in the
reclaiming and processing of tin
Underwriters—Quincy Cass Associates
Offering—The common stock will be of¬
fered to the public at $1 per share
Proceeds will be used to pay for organi¬
zation expenses, a detinning plant and for
working capital
Registration
Statement
No.
2-4956.
Form A1
(3-2-42—San Francisco)
KEYSTONE CUSTODIAN FUNDS, INC.
Custodian
Keystone
four
Funds,
filed
Inc.,
separate registration
statements with
the SEC covering following: 25,000 shares
teries
B-l
full
certificates of
participa¬
tion; 300,000 shares series B-3 full cer¬
tificates
series
tion,
of
participation;
full
K-2
and
of
shares
of
certificates
500,000
certificates
70,000
participa¬
series S-4 full
shares
participation
Address—50
the
Congress St., Boston, Mass.
jwill be offered to the public, at the market
Proceeds will be used for investment pur¬
poses
•
SECURITIES
2-4952,
(2-2-42)
&
RESEARCH
CORP.
National
filed
two
with
the
Securities
separate
Independence
and
(1)
fund
agreement
insurance
and
&
Research
Corp.
statements
registration
for
SEC
maximum
a
declarations
(of
which
105
with
105
of
of
210
trust
without
are
insurance
of
the
accumulative
type), calling for payments
aggregating
not
in
excess
of
$252,000
($126,000 without insurance and $126,000
with
insurance); and (2) 250 independence
declarations of trust
(income type,
capital type and distributive type), aggre¬
gating $268,750, of which $18,750 repre¬
fund
sents
maximum
a
creation
fee
payable
the sponsor and is not part of the trust
Address—1
Cedar
Business—This
ment
trust.
laration
which
trust
fees,
York,
is
presents
such
fund
a
dec¬
means
by
trust account
a
shares,
the
to
and
to
funds
provide
A-2
(3-10-42)
UNION
%:*■'«
CO.
ELECTRIC
Union
Electric
MISSOURI
OF
of Missouri
Co.
filed
a
registration statement with the SEC for
$10,000,000 first mortgage and collateral
trust 3%% bonds due 1971
Address—315
N.
Twelfth
Blvd.,
St.
Louis, Mo.
.
Business—This
North
subsidiary
of
The
is
engaged pri¬
the transmission, distribution
of electric
energy,
which it
and purchases from its sub¬
serving the city of St. Louis,
portion of 5 adjacent Missouri
American
marily in
and
sale
generates
sidiaries,
Mo., and
of
and
Co.
3
counties
Missouri
in
adjacent to the company's Osage hydro¬
plant
electric
Proceeds—Proceeds
the bonds would
from
be used
the
of
sale
the
finance
to
company's
construction
program,
in¬
cluding the Venice No, 2 plant of its
subsidiary, the Union Electric Co. of
Illinois.
Company
proposed
to
buy
from the subsidiary as much as $10,000,000
of
providing for investment of $1,000 to $100,000
or
more
in
a
commingled fund of
stocks and bonds, with certain protective
additional
stock
common
the
of
funds are
subsidiary as construction
required.
All the outstanding stock of
the
subsidiary Is pledged under the
company's mortgage under which the
bonds
issued.
be
to
are
Venice
The
150,000
;
Inc., N. Y.
125,000
Hutzler, N. Y._.
125,000
New York
240,0(f0 kilowatts
generating capacity to the
late in 1943.
The
of additional
first
system
section
consists
of two
40,000 kilo¬
units, of which the first recently
placed in operation and the second
is scheduled for completion next month.
A
second
section
of
80.000 kilowatts
under construction is scheduled for com¬
pletion in the Fall and a third of the
same
capacity is to be completed late
Registration
A2
Statement No. 2-4959. Form
(3-10-42)
and subject to certain risks
ordinarily are incident to the owner¬
ship of the type of securities comprising
300,000
the investment fund
The company is
Proceeds
will
CELANESE
used
CORPORATION
Celanese
the sponsor
be
investment
for
purposes
Registration Statements: 2-4957; 2-4958.
(3-2-42)
Form CI
OF
AMERICA
Corporation of America filed
a
Whiting, Weeks & Stubbs, Inc.,
50,000
Wisconsin
Co.,
Dean Witter &
Milwaukee
125,000
Co., San Francisco
50,000
Proceeds—Purpose
or purposes to which
proceeds will be applied, are to be
by amendment
; ,.>;j
Registration Statement No, 2-4962. Form
A-2
PET MILK CO.
Cox
filed
Fund
statement
with
number of
beneficial shares,
amount
the
however
Address—San
SEC
not
to
a
number of
1962, and
shares
conversion
of
indeterminable
an
no
par
stock
common
for
an
unstated
the aggregate
$500,000.
tures
Sponsor—Dodge & Cox
Form
(3-9-42)
SUNDAY, MARCH 29
ment
mon
with
stock,
value.
registration
state¬
com¬
value
.
^
,
6 '
Business—Company is engaged, normally,
the design, manufacture, sale and erec¬
tion
of
elevating,
conveying,
material
In
machinery
of
and
and
first
be
the
power
transmission
manufacture
castings
and
sale
at
the
183
shares
the
on
per
share
The
Time
will
Address—1401
on
and
of
sale
products,
mix,
and
under
on
bentures
April
as
6,
are
1942.
not
Names
maximum
of
the
the
be
of
to
reg¬
ice
powdered milk
they
dairy
ice
cream,
and
also
other
of
War
for
De¬
the
>0
stock
Offering—The
offered
to
the
by
supplied
preferred
public,
at
will
price
a •
be
to
be
amendment
Proceeds—The
proceeds
•
stock
from
to
purposes
sale
of
the
which
shares
the
will
be
the
and
to
be
in
the
face
the
A-2
(3-12-42)
statement
shares
Address—30
111.'
with
stock,
common
No.
the
no
La
SEC
5,000
Salle
St.,
.
of
and
ing
involved.
Proceeds
Offering—The
stock
common
public at
will
be
$5 per share; no
will
5,000
sold
to
underwrit¬
Registration
for corporate
' ? '
No.
2-4964. Form
one
share
cash
for
ferred
CUSTODIAN
Custodian
registration
750,000
A
shares
of
of
of
with
Series
Inc.,
the
"B-4"
Participation
Full
a
Cer¬
with
to
parent
the
to
to
characteristics
most
Offering—The
Depositor is the
shares
or
more
have
but
ago,
been
not
to
City Electric
statement
with
Co.
1952;
issue*
whose
deter¬
at
1942, to defer
ELECTRIC
Issues
serial
to
Deb.
4%
1942-46
notes
of
and
of
Y,
will
be
regis¬
for
62.000
Stock, $100
by
furnished
amendment
Address—Atlantic
Business—This
City,
N. J.
subsidiary
Co,
mated
make
will
be
by
Fuel
of
is engaged
Fuel
serial
Gas
Gas
capital
Co.,
24,
American
eration, transmission, distribution and sale
electric energy in the southern part of
of
Nov.
1941,
March
a
POWER
Power
ft
LIGHT
8EC
1
that
total number of
Stock,
$100
Bonds
and
on
Par.
Interest
Debentures,
the
preferred
plied by amendment
Address—25 8. E.
and
stock,
Second
rates
the
on
the
dividend
will
be
Ave.,
sup¬
Miami
Fla.
Business—This
New Jersey,
Power
System! is
&
Light
an
<
-
will
■
•,
'
-
.-.
-
be
added
r
.
to
-
■
+
-
J
working cap¬
„
;
;
U-28-42K
Form
'•] ' '
-
Registration effective 4:45
on
March 5, 1942.
E.
p.m.
•
S.
HAMILTON WATCH CO. 5
Watch
filed
Co.
registration
preferred
stock, $100 par
Address—Lancaster, Pa.
:
f
:
? Business -tCompany manufactures and
sells various models of high grade (17 to
23
Jewel) pocket and wrist watches for
and
men
wrist
watches
for
women
|
\
Underwriting and Offering—Company 1*
making a conditional offer to holders of it*
32,054 shares of outsanding
stock
of
stock
for
6% preferred
privilege of exchanging such
the
33,054
of the 39,382 shares of
preferred stock on basis of one share
4'/a % preferred stock, plus $1.50 (equal
4Va%
of
to
current
March
6%
quarterly
1942, on one
1,
preferred
(difference
amount
dividend
plus
an
between
payable
outstanding1
share
stock),
the
unstated
public' of«^
fering price of one share 4'/2% preferred
stock and $105, the redemption price of
the 6% preferred), for each share of out¬
standing 6% preferred stock.
Exchange
offer expires Jan. 22, 1942.
Any shares of
4%j% preferred not Issued under the ex¬
change offer, plus the 6,328 shares not
reserved
for
such
exchange offer, will be
public, at a price to be
Harriman Ripley
& Co., Inc., Philadelphia, is named
prin¬
cipal underwriter; other underwriters will
offered
the
to
supplied by amendment.
be
supplied by amendment.
will
be
'.
,
to
used
redeem, on
1, 1942, at $105 per -share, all out¬
standing 6% preferred stock; balance fox
expenditures
tion
and
in
connection
with
construc¬
equipment of plant additions
(12-30-41)
I
subsidiary
(Electric
/
!
■,.
,
Amendment filed Jan. 29, Feb. 10 and
0, 1942 to defer effective date,
HASTINGS
MANUFACTURING
$2
SEC
140,400
value
par
CO.
Manufacturing Co. registered
shares common stock,
Hastings
with
<
.
Address—Hastings, Mich.
sells
piston
expanders
and
rings
-
and
Business—Manufactures
'
Rockefeller
Underwriters—Schroder,
ft
principal
underwriters.
Other
underwriters are Smith, Hague ft
Co.
and
Carlton
M.
Higbie Corp., De¬
troit, Mich.
Co.,
Inc.,
are
Offering—23,100 shares are unissued and
to
be offered to the public for the
remaining 117,300
shares are outstanding and are to be Bold
of
"Bond
account of the company;
to
registered
Mortgage
1, 1971; $10,000,000 Sinking Fund Debentures, due Oct. 1,
1956;
and
140,000 shares Cumulative Preferred
due Oct.
preferred
warrants ulti¬
public
for
of
account
certain
stockholders
CO.
<fc
Light Co.
$45,000,000
First
bonds,
5%
are
18, Dec. f>. Den
31, Feb. 19 and
Jan. 12, Jan.
10, 1942, to defer effective date
also
including Atlantic City, and Is
engaged in furnishing hot water heat¬
filed
of-
War Time
and
contributlor
(4-10-41)
Amendments
shares
issued to preferred and common
v..
Co.
Registration Statement No. 2-4736. Form
rate
in the gen¬
176,854
Proceeds
guaranteed
Cinn., Newport & Covington Ry Co. to
that Company to redeem its
out$3,303,000 1st & Ref. 6s. 1947
A-2.
outstanding Common
Warrants, latter entitling
purchase 176,854 shares
publiclj
guaranteed
Ohio
United
,
the*
certain
710 shares. V.
com
amendmenf
$3,750,000
$3,402,090
a
upon 1
thereof to
ital
S2
C.
$50,000,000 Deb 6s
6s,
due April
15
5s,
1961;
to pur^
Deb.
issuance
March
CORP.
holding
filed
redeem
|
:
for
Registration Statement No. 2-4926. Form
N.
utility
prices
subsidiary,
With
filed a
the SEC
of
Purchase
March
$4,750,700
us.
of Cumulative Preferred
rate
ex¬
standing
of
list
a
unknown
are
Electric
necessary
above
enable
ATLANTIC CITY ELECTRIC CO.
Gas &
ft
Offering—Both
Proceeds—To
$50,000,000
$3,750,000
below
dates
dividend
GAS
Business—Public
Florida
par:
the
27,
debentures due 1961
Address—61 Broadway,
FLORIDA
shares
divi¬
Gas
&
Electric Corp.
regis¬
$28,000,000 serial debentures,
due
1942 to 1951, and
$92,000,000 sinking fund
due
OF OFFERING
present
Atlantic
sold
,
filed Feb.
1952;
whose registration statements were filed
tration
be
cumulative
amount
an
do
mately to be outstanding will represent
the right to purchase approximately
140,-
date
COLUMBIA
to
or
in
;
notes
UNDETERMINED
mined
share,
per
to
subsidiary, from the holders thereof:
DATES
offering
at $25
tered
to
days
Transamerlca
payments in
chase
(3-14-42)
reserved
Proceeds
a
twenty
38,852
stockholders
portion
unpaid
made
cash
public at the market.
poses
We
$17.25
preferred
(3)
to
than
company,
sponsor
Proceeds will be used for investment pur¬
C-l
be
cover
offered
The
and
first
unsubscribed
represent
effective
fitting his individual reouirements
and
plus
6%
of
to Dec. 31,
1941; in connection with
offering under (3) above, a cash offer is
securities
to the
stock
out¬
basis
on
Transamerica Corp. at same price. The
payments in (1) and
(2) exchange
pany
Underwriting
shares
stock
stock;
sold
to
to
stockholders of Utility and Industrial Corp.
pursuant to merger agreement.. It is esti-f
56,544
1
other
company
listed securities, to enable the investor to
choose the type or combination of types of
the
pre¬
plan
a
(1)
Columbia
V
funds, each employing its
designated class and type of
having
under
for
trust
a
plus
be
Amendment
filed
SEC
Congress St., Boston, Mass.
Business--Company
is
an
investment
trust; The "Keystone Plan" establishes a
in
smoking
new
Registration Statement No. 2-4947. Form
A2 (2-13-42—San
Francisco)
Address—SO
of
of
1/5 shares new pre¬
$16 cash for one share
common
will
Corp.,
FUNDS, INC.
Funds,
statement
shores
tificates
stock
Class
basis
on
as
cumulative
Twenty
54,558 shares in exchange for
shares outstanding Class A com¬
stock
mon
so
authority
and
shares
old
tires,, company
charter
its
statement with SEC for 39,382 shares 4& V
14,136
of
of
manufacture
follows;
preferred
new
Its
vvf
Hamilton
issued
as
new
change offers.
THURSDAY, APRIL 2
Keystone
in
shares
also
Statement
(2-12-42)
KEYSTONE
be
4
dends
S-3
will
exchange for
6% preferred
offers
.;
stock
prohibition of sale of
and
common stock of
company at price of $4
during period from Mar. 4, 1942
through March 4, 1947.
Such warrants as
regis¬
a
to
automo¬
Registration Statement No. 2-4936.
filed
brand*
standing
pur¬
'
various
recapitalization,
including further developing and
exploring of properties now owned by the
poses,
company
and
recent
amend
scope
by
secured
of
A2
cash
be used
exercise
holders
CO.
Co.
to
funds
their short-term in¬
;
arc
Stock
the SEC for aggre¬
chewing tobaccos.
Offering—The 149,944
45,465
Chicago,
'
Underwriting
with
chat¬
and
contracts
advancing
on
notes
automobiles
stock
market
stock;. (2)
Business—Engaged
in
the
mining
of
antimony ore in Mineral Township, Sevier
County, Arkansas
.r,
the
Grand)
ferred
regis¬
a
for
Tobacco
sales
Underwriting—None
; '
y.
Address—Louisville, Ky.
Business—Engaged in the
of cigarettes
(Clown, Spud,
of
value
par
'"V
shares
Fisher
..
.
GILLIIAM MINING CO., INC.
Gillham Mining Co,, Inc., filed
tration
Axton
shares
;
Due
with¬
shares
general
(
'
-
,
Offering—The 176,854 shares of common
Proposals—No bids
the
of
tration statement
■j
Registration Statement No. 2-4963. Form
biles.
business
received Feb. 24 for the issue. Groups
and
be
will be supplied by amendment to
the registration statement
applied,
bearing
proposes
to
broaden the
underwriting
Co., will participate in the underwriting
of
under
to
■
for
|
f
and
dealers
terest
new
Registration Effective 12:30 p.m. E. War
on Feb.
14, 1942.
<
v?
uncertainty,
butter.
supplied
conditional
mortgages,
automobile
Form
'
gate of 149,944 shares 5% cumulative prior
preferred stock, $25 par.
be
bile
Time
compete
.
St., Chicago, jlll. j
Business—Company and subsidiaries en¬
gaged principally in discounting install-*
ment notes receivable secured by automo¬
were
drew
cream
with
and
to
■
corp. iiled registration
SEC
for
176,854
shares
stock, $1 par
filed
were
;£.;-r
; ••>./.?
Address—184 W. Lake
.
30,592
&
will
common
stock
formed
*
Form
Finance
statement
tel
Electric Co.
for
company'*
Further de¬
post-effectlv*
,
1941,
Feb. 24 and March
1942, to defer effective date
»
General
preferred stock (at its cost);:
to be deposited with
the re¬
Invitation
of
>
Jan. 20, Feb. 6,
debtedness to American Gas & Electric Co.;
and the balance for corporate purposes
Public
shares
stock, no par.
suppliedby
"
$6
(2-2-42)
142.667
be
per share,
A2
followej
at 102(4, the $52,as
.
AXTON FISHER TOBACCO
the' public
Debentures
by eacl), are:
exer¬
the
price
underwirters,
amount of
underwritten
the
Eastern
subscribed
a
milk;
certain
held
amendment.
will
Such
this
offer,
will
be> sold
through underwriters,
at
supplied by amendment.
Louis,
,•-';???:
state-
,'
applied
GENERAL FINANCE CORP.
the names of
supplied
by
by amend¬
ment.
However, the Prospectus shows that
Kidder, Peabody & Co. and G. H. Walker
other
stock
common
p.m.
St.
be
<9-17-41)
13,
pre¬
competitive
Registration Statement No. 2-4941.
Bldg.,
Underwriting—Details
con¬
The subscription price
3
sell
including
arrangements
to
Warrants
Arcade
evaporated
manufacture
company
supplied by
before
or
par
supplied
registration
' !';%
_
redeem
to
the
called for redemption at $120 per share),
outstanding in the hands of the public;
$2,500,000 to discharge open account in¬
v.
'
registered
effective date of
be
Subscription
of
:
$100
be
Business—Company and its subsidiaries
are engaged
primarily in the manufacture
Offering—The deben¬
offered
will
wholesale
and fabrics
and
Stock,
rate
Registration Statement No. 2-4965. Form
sale
under
Preferred
dividend
30,000 shares
Mo.
company's
stockholders,
via
subscription
rights,' for subscription at
the
rate of
$1,000 principal amount of the Debentures
cisable
Michigan Ave., Chicago,
The
;
registration
a
for
company
Rule U-50
Offer,
new
demption agent, for the redemption of 26,283
shares of $6 preferred stock (to be
,
filed
SEC
by amendment
common
of record
for 33,604 shares
par
Address—307 N.
a
III.
preparation
and
istration statement.
filed
the SEC
no
yarns
"Celanese"
will
for each
LINK-BELT CO.
Co.
and
acetate yarns
such
the
of
shares
&
Gas
'
.
securi¬
by
Amendments filed Nov. 27, Dec. 15,
from
American
to
V'
will
to
Jan. 2,
sale of the 62,000 shares
stock, plus a capital con¬
tribution in cash of $2,500,000 to be made
to
company by American Gas & Electric
Co., the parent company, will be used for
following purposes: $3,059,200 to purchase
from
-
sold
Registration Statement No. 2-4845.
preferred
new
amendment
preferred
A2.
Exchange Offer,
bidders will
have the option to purchase the additional
shares represented by such deficiency at
the same price per share
as
they have
•;
be
amendment
ferred are taken under the
$3,153,960
■'
has
Co.
with
Cumulative
of
Debentures
manufacture
taining
Underwriting
Registration Statement No. 2-4961
Link-Belt
the
trademarks owned by the
trust
Purpose—Proceeds for investment
A-2 per rule 524
the
is
of cellulose
trademark
Francisco, Calif
Business—Investment
of
Address—180 Madison Ave., New York
Business—Principal business of company
registration
exceed
Milk
Pet
statement
will be offered
DODGE & COX FUND
&
>•
due
shares), latter to be reserved for issue upon
Dodge
(2-11-42)
.
TUESDAY, MARCH 31
(including scrip certificates for fractions of
SATURDAY, MARCH 28
:
$7
tails
by
for the other shares
exception of
other portions
and
Offering—The
to
are
:•./?,
share,
then the successful competitive
bid
(with
000,000 of company's First Mortgage 5s of
1954; $15,693,370 to redeem at $110-per
such excess;
and if less than 13,000 shares of new pre¬
Proceeds
Boston
The
of
under
reduced
be
amendment
nearly
March, 1,
sold
be
to
will
Exchange
shares
of
150,000
statement with the SEC for
$7,522,000 of 31/2% Convertible Debentures,
registration
stock
bidding
the
under
number
200,000
capital
MONDAY, MARCH 30
as
the
White, Weld & Co., New York...
series
requirements
stock
then
en¬
gas),
the
competitive bidding
SEC's Public Utility Holding Com¬
Act.
Names of
underwriters
and
to public, will be supplied by post-
Proceeds
holders
Should
Public offering price, and
the
underwriters,
will
be
year
Underwriting
and
Offering—Subject
the SEC's approval the company ex¬
pects to offer the issue at comparative
bidding about March 23, with bids to be
submitted by March 30.
Names of under¬
writers and the public offering price will
be supplied by amendment.
to
ferred
made.
is
75,000
watt
was
later
Tucker, Anthony & Co., Boston..,
Union Securities Corp., New York
No. 2 plant would add
company's
offer
300,000
re¬
company
capital
Registration Statement No. 2-4960. Form
next
Y.
the payment of
upon
establish
can
N.
to
invest¬
an
independence
individual,
an
certain
New
company
An
of
St.,
of
of
,
Registration
Statements
Nos.
2-4953, 2-4954, 2-4955.
Form C-l
i
NATIONAL
moneys
tion
will be used
for
expended by it in the acquisi¬
treasury
for additional working
.
shares, representing the above certificates,
of $888,600
the
counties
i
Business—Company is a distributive type
jof investment trust
!
;■
Underwriting and Offering—The above
,
imburse
not
such
Smith, Barney & Co., New York.
and
Offering—The shares
registered are held by the company in its
treasury, and are to be offered only to a
selected group of officers and employees
of the company at $26.48 per share
expire
ferred
250,000
.....
Moseley & Co., Boston.....
Otis
Riter & Co.,
E.
Fenner
York......
Beane, New
will
after
of the $6 preferred stock held by the public
take more than 13,000 shares of new pre¬
of
along
the
$53,170,000
of the
The exchange offer
than the fifth day
stock.
150,000
■
Corp.,, Pittsburgh
the initial public offering price
preferred
territory
the
:
dividends to the date of redemption,
new
transmit¬
electric
sale
>
ment
cash per share equal to the ex¬
cess
of the redemption price of $120 per
share of the $6 preferred stock, plus ac¬
over
the
and
Florida
registered
price
$6: preferred
crued
of
of
coast
effective
preferred stock for each share
stock exchange,? plus an
selling
Florida
pany
aihount in
350,000
York
Mellon Securities
F. S.
75,000
V.
v<
,
bidding rule of Holding
registered will be offered under an
Exchange Offer, as follows: holders of the
26,283 shares of $6 preferred stock held by
the public will be entitled to receive one
Hayden, Miller & Co., Cleveland.
Hayden, Stone & Co., New York.
most
Underwriting and
Provision is made that the
13,000 shares of new preferred
Hemphill, Noyes & Co., New York
Hornblower & Weeks, New York.
and
manufacture
Jacksonville area),
of
stock
75,000
^
east
competitive
remaining
: v V,
300,000
Co., Inc., Chicago.
serving
service
First
Harris, Hall &
(also
publicly to invite proposals for purchase of
49,000 shares of the new preferred' stock,
are
revenues
principally in generating,
ting,1 distributing
ergy
the
50,000
York
gaged
custo¬
two
Underwriting and Offering—As soon as
practicable after the registration
state¬
ment becomes effective, company proposes
electric
75,000
::
gross
under
New
to
plant.
About
derived from
City
125,000
of
Company- Act.
New
Atlantic
in
area
for heating
99%
75,000
Boston
limited
a
Atlantic
75,000
300,000
the
Underwriting
its
at
50,000
supplied
*
in
and steam
Co., Boston.......^
Lee
for bonds bearing 3 Va %
par
an
Awarded
S.
E.
service
Estabrook &
W. E.
(2-17-42)
Registration
effective
12 moon
War Time on March 4, 1942.
ing
,s
Central
New
Following is
■
50,000
Becker &
Blyth & Co.,
Holding
Company Act; public
offering price, names of underwriters, will
Company
terminal facili¬
own
company's
parent
together
Nash¬
near
miles).
105
•will also construct and
com¬
will
(Indiana),
Corp.
tie-in
the
Electric's
where it will connect with a trans¬
miles)
by
the interconnected system of Louisville Gas
Ky.
Business—Incorporated
ville,
plete
tem
trans¬
of
miles
constructed
be
to
wholly-owned subsidiary, Louisville
pany's
Transmission
Louisville
filed
SEC
lines
10
with
together
which,
OFFERINGS
LOUISVILLE
Proposed
by
shares
certain
Public
chase
&
8har*
en¬
amended: 23,100
105,756
shares by
as
offering
to
Is $9.50 per shari
price
company
be used for
including pur¬
and for working
will
corporate purposes,
of
new
equipment
capital
Registration Statement No. 2-4890. Form
A2.
(11-19-41
Cleveland)
Amendments filed Jan. 8, Jan. 24, Feb. 2,
American
operating public utility
offering
company,
stockholders
Proceeds
general
selling
|
and
v
,
Feb.
25.
1942,
to
defer
effective
(This .List .15 Incomplete Today)
date
.
...
:Volume 155'.Number-4056
:
•
THE COMMERCIAL
.
& FINANCIAL CHRONICLE
-1143
SUMMARY OF ANNUAL REPORT
-
FOR 1941
TTpHE 95th Annual Report of the Pennsylvania Railroad Company covering operations
/ JL; at the annual meeting on April 14,1942.Operating revenues increased
$136,447,755 or
for 1941 will be presented
l
28.6%
:$104,222,597/;or 30.8%,-Taxes increased $22)274,360.
■
y$48,414,588, equal
7.4% ($3.68
to
per
share)
or 50.8%. Net income was
$52,383,958 an
the outstanding Capital Stock (par $50) as compared with
5.6% ($2.80
upon
.77 *'7
increases or
%: y
'■ ■'
.V-•• /\ (v:;.
-
•
%
•
,
.
f
*
'
<
.
-
•
"•
'
'
"■
.
-
.
i''--7v-7
1^;:/:...'ih.-,;:!'
Taxes Amounted
^IRE
and
of
....
Leaving Net Railway Operating Income of.
Income from Investments and Other Sources Was
97,102,488
*41,663,095
.....
'
..
Making Gross Income
Fixed
-
/
Interest
on the
Leaving Net Income
.....
of
138,765,583
Charges, Chiefly Rentals Paid
and
Appropriations
to
Surplus..
•
1
'
of
Sinking
.7
.
Oi-her
and
J...;..;
^Includes dividend of
/....
the national emergency
and
ability, under private
management,
During 1941 the freight traffic was
previous year in their history and the
r
/
any
traffic
passenger
greater than any year since 1929. Although the i
ownership of freight cars was 600,000, or 26% less than
in 1929, witli a greater
capacity of cars and locomotives
it was possible, by continuous
improvement in facilities
and operating methods, to handle this large traffic >
'without congestion or car shortage,
"'f'T?-/*-;>>'7v^'5ft>4
/ The failfoads of the cduntry are alert to their.xesppn- r :
was
z'J/y.
■»
».
?'
;
than
i-
-
*
>
£
'
4".-. 4'
7
■
-«;sibilityjnthempving ofmenandmaterialssoessential^
to our
National Defense. The Company is
participating
resources/including expenditures for im-
with all its
.
.
provements, towards
.
,
"
*
:
-
-
:
$12,S>47*-'"v
?70 during the past year. Equipment Trust Obligations
inaeased $4,704,000 due to the issuance of $11,925,000 3
" *
•Fifteen-year VA% obligations, which were sold on a ?
'1-744% basis to finance, in part, the cost of new >
c.-VT\v":. equipment. This in turn was offset
by the payment of !
"\Sf
7<-
'
"* Hie' Company's'.net; funded' debrwas reduced
*
s
;
^
finance
#
••
\
producing the maximum of trans-
portationefficiency.
.
\>
*
.
*7 >'r
1 4
...;
,
,
:
°
-
'7
obligations amounting to $7,221,000. :
/
The System's funded debt in the hands of the
public
was
reduced almost $30,000,000
through securities
retired at maturity, bonds redeemed
through sinking
funds, and bonds acquired by System Companies.
„
/
.
-
'
'
,
;
■ •
r&M To
meet
the requirements of National Defense
the end of the .year
1
7
-
.
250 cabin
tenders, 14
V
;'■(
>
cars,
..
I,.
10
1
■;-4,64v44'
Z
6,922 freight carrying cars,
locomotives, 16 large capacity
coaches, 10 car floats, 15 barges,
lighters, 1 tug boat, and 1 track sweeper.
;
Capital expenditures were also made for additions
to, and betterments of, roadway, structures and
equip/
ment, many of which were necessary in connection
with National Defense.
,
$ 48,414,588
;
32,225,158
22,274,360
652,204
I
I
10,603,002
365,787
I
10,968,789
"
*
/
'
D
:; |
;
639,339
•
,
11,608,128
7v 90,205
r
$ 11,517,923
"
is $38,000,000.
'
•
per
cost to
share) in 1940.
the
Company per annum
v:j
■':/ 7
-
an
obtained, the railroad's efforts to continue to pro¬
adequate and efficient railroad transportation,
necessary by the war, might be seriously affected.
The railroads of the
country, including the Company,
therefore, petitioned the Interstate Commerce Com¬
mission on December
13, 1941, for authority to in¬
crease
freight and passenger rates, other than the
special rates
provided for the military and naval forces
of the United States
travelling
on
furlough.
Hearings have been held in this proceeding. The
Commission
crease
ized
a
January 21, 1942, authorized an in¬
in passenger fares; and on March
2,1942, author¬
slight increase in freight rates.
"
> >:
:
on
']
Taxes amounted
taxes
$66,159,548, an increase of $22,274,360, or 59.8%. Of this $18,648,885 was
chiefly
due to larger income and
higher Federal Income tax
rate. Higher
payrolls resulted in an increase of $1,812,474 in Unemployment Insurance
taxes, while Railroad
Retirement taxes increased
$1,813,001.
All taxes require about 10.8 cents out of each dollar
of operating revenue, equivalent to 10.1%
($5.04 per
connections and other rail¬
coordination of fast passenger service between
Chicago
and various parts of
Florida, effective December 17,
1941, which resulted in substantial operating econo¬
at the same time
affording the travelling
public the fastest and most attractive sleeping car
share,
stock.
an
-
to
increase of $1.69
•
per
share)
•
f
,
upon
■ -''
.
the capital
.
The
territory.
,
'
railroads continue to be the only form of
transportation used generally by the public that pro¬
vides its own right of way and
terminals, pays for
their maintenance, and in addition pays taxes for the
support of Government.
wages
stockholders
demands
were made upon the rail¬
roads of the country by the labor
organizations for
year,
increases which involved
made
Chicago-Florida passenger field, the Com¬
participated in a comprehensive plan for full
During the
the wage
to
approximately $332,000,000 per annum in
operating cost of the railroads, the railroads antici¬
be
roads in the
improvements in passenger train
including further quickening
through trains between the
/
"
vide the
passenger service
service were also effected,
of schedules of several
East and the West.
<
pated, with the war on. increases in other expenses
which would not be taken care of
by the probable
increase in volume. Thus, unless increased rates could
During the year, passenger services were further im¬
proved and three entirely new trains were added: (1)
,„;>"The Jeffersonian", an all coach train operating be¬
tween St. Louis and New York on a
2014 hour schedule;
7(2) 1'The Patriot", operating between Washington,
Baltimore, Philadelphia, New York, and Boston, with
modern coaches, dining and lounge
cars, and pullman
•sleepers, on an 8 hour, 40 minute schedule, the fastest
service ever provided between
Washington and Boston;
and (3) "The Pennsylvanian", between
Chicago and
New York, affording the latest
evening departure from
Chicago with morning arrival at Philadelphia, New
York, Baltimore and Washington,
A number of other
•
/
increase of
the
dicative, of the Company's efforts to be
prepared to
the defense needs of the
country.
offered in that
•
'
_
freight and passenger rates
In addition
meet
ever
•'
'/
1
'-j'\
payrolls, the increased
new
and coach service
"
;
'
paid during 1941, compared with 3% ($1.50
structures, and other facilities in the interest of im¬
proved service to the public.
This program of additions and betterments is in¬
|
,f. A.
104,222,597
I
I
D
I
period ended December 31, 1941, in
and improved types of
passenger
dining cars, and remodeling and airconditioning of passenger train equipment, more than
35,000 new freight cars and 336 locomotives of the
most efficient
type and advanced design were placed
in service. There was also
expended nearly $670,000,000
for additions and betterments to
equipment, roadway,
pany
•
86,381,625
year
to
•-!'
-
and
were
23
passenger
-
-
new
equipment placed in service during 1941 included 4,954
freight carrying cars, 200 cabin cars, 3 locomotives, 41
large capacity tenders, 668 freight containers, 4 passen¬
ger coaches, 3 car floats and 1 tug boat. In addition
110 passenger train cars were remodeled. On
order at
,
.;
i-?■.*-
■
"; \
mies while
.:;•>' equipment
•
,
■
7/*'• 7,'"-■ •"'*'!
>•
$136,447,755
52,383,958 <1
Funds, etc.3,969,370 I
p In cooperation with its
.
,
'
12
coaches
to meet sue-
greater
the
addition
?!• cessfully and completely the demands made upon -4,
them by the National
Emergency. The efficient performance has been well recognized.
:
"
*.11!
In
3
again demonstrated their capacity
.
Leased Roads,
.............
T
$5,600,000 {par value) in securities received jrovi Pennsylvania Co,
Dividends aggregating 4% ($2.00 per
share).were
The railroads have
to
Company's Debt.
*
'
I
I
.....
\
;
share) in 1940.
1940
,*V•. -f
171,363,888'
; 66,159,548
Joint Facilitv Rents Were, y...8,101,852
to
Equipment
0F
b'
,$614,041,163
•
442,677,275
;■
Leaving Net Revenue From Railway
Operations
.
■
1941
V;'-7^7 ";*7
;v
,v-...,,,
.
Total.Operating Expenses Were-,,%
*.
%
•
^vV;';v-
Total Operating Revenues Were,
'
•/
.
»
<
OPERATING RESULTS \
:
^
:
1:>C>*
per
1
decreases over
•
the stockholders
to
1940. Operating expenses increased
increase of $11,608,128. Surplus was
over
heavy increases in wages, and modification of working
conditions, as a result of which the basic rates of pay
employes were increased 9Vz cents per hour'
and 10 cents per hour for others, with certain additional
concessions for paid vacations. On the basis of 1941
of certain
The
Capital Stock of the Company, at the close of the
year, was owned by 205,012 stockholders, the average
holding being 64 shares. Information concerning the
Company and its activities will be furnished stock¬
holders upon request and constructive suggestions
respecting the Company or its service are always
appreciated and receive careful consideration.
'
The Board takes
pleasure in acknowledging the continued efficiency and
loyalty of all the
employes during this period of great national stress. We know that
they will continue to
do their full share in
meeting the additional heavy responsibilities that have now been
placed upon them.
;
7
*
.
•V/7-- ;v-V':
rv-z?;;
.
-
7- 7;
:
M. W.
CLEMENT, President
SHIP AND TRAVEL VIA
PENNSYLVANIA
Stockholders
can
obtain
copies of the Annual Report from j. Taney Willcox)
Secretary, Broad Street Station Buildings Philadelphia, Pa,
1
■s*
WM««Nm««*0««i!*M^
At N. Ya Dealers Dinner
j
duction"
■
many"
"Inside
and
Secretary of the Treasury Mor¬
For
Actual
Ger¬
Nazi
given
be
to
are
16
that the tenders for $150,000,000
or thereabouts, of 91-day Treasury
bills, to be dated March 18 and
to mature June 17, 1942, which
Trading Markets
Over-The-Counter Securities
Banks
dinner to be held on March
vealed:
Kobbe, Gearhart & Company
mission, will address the gather¬
(
V''
••
on
Continental
TELEPHONE
V
Motors
:
telephone
hartford
(-.new
Entebpbise 6015
<
.
'
yobk
boston telephone
.
Enterprise 1250
Enterprise 6425
f:
v
lent
MICH.
(ident
price
amount of
maturity of
a
was
bills
a
March
on
&
18
&
in
$150,040,000. There also
needed any confirmation of the report of a huge borrow¬
market in April, just study the Federal Reserve Sys¬
tem's statement of last Friday.
.
Showing the Treasury!s balance
with the Reserve Banks down to $60,267,000, the lowest figure in any
number of years and an amazingly small figure considering the times,
the rate of daily spending.
;
Of course, there was a reason for
bills
of
Harper, Wegusen & Yonkman, are
now with King, Wulf & Co.
i
1,1
■'
;
'*
'''
•'
'
'
•
.
in the month.
than at any
as
It may rise to $2,000,000,000,
Some Government bond dealers are
previous time.
of fact.
matter
a
And the cash request this time may be larger
.
.
,
V
.
.
.
.
.
BOSTON, MASS.—At the 22nd
annual meeting of the Boston As¬
sociation of Stock Exchange Firms
( held today at the Boston Stock
(Exchange, the following were
.
Governors
elected
to
for
serve
three
years:
Robert
B.
Almy,
Townsend, Dabney & Tyson; Herman F.
Clarke, Estabrook & Co.;
.
•
Ralph Hornblower, Hornblower &
( Weeks; and Lester Watson, Hay;
den, Stone & Co.(
Officers elected
.
Colonial
Francis I. duPont Dead
There
/Francis I.; duPont, senior part¬
ner
in Francis I. duPont & Co.
jtredge,
and
Edward
Hornblower
&
so
are
reports of different issues under considera¬
many
level of interest rates."
One story is that a "tap issue"
Another is that "odd things
such as making them variable with the
A third is that an issue without a ma¬
.
.
.
.
war.
There
.
change.
It
Eaton & Howard, inc.
seems
.
unlikely that
a
tap issue will be tried just yet.
.
.
.
next month.
...
And
yet, if the market does indicate it has had enough of ordi¬
nary long-term and intermediate-term issues, Secretary Morgenthau will have to invent a feature to arouse buying senti¬
.
.
As for the other
ment.
tales, they
bit fantastic.
appear a
...
is delayed until the financing after this, the
If that move
odds
And the
April a long-term 2Z% bond, due in early '60s. . . .
odds are that before the issue is offered, action will be taken
to
the
we'll get in
ease
banking position and to encourage
&
MASS. —John
Howard,
Federal
iwas
Chronicle)
Incorporated,
Street.
formerly
for
L.
Mr.
many
Blake
years
a
.
.
.
.
.
.
the banks could be allowed to reduce their reserves against
'
deposits.
Support-.';
.
;(((v.;:;...;.,,(:"'\,((.
Assuming
R. Hoe & Co.
these
securities.
.
.
Dye, Pfd.
HAY, FALES & CO.
71
York
Stock
Exchange
Broadway, N. Y.BOwling Green 9-7030
Pell
Teletype
NY,1-61
.
r
*-.i.
use
come
A
through,
Morgenthau
the cash to buy
outstanding Treas¬
.
...
debt could be engineered—for the debt would be
portfolios of commercial banks to the portfolios
semi-public Federal Reserve Banks.
.
.
the
.
Incidentally,
net
•
memorandum
detailed
Firemen's
on
Insurance
Company (of
Newark has been issued by Huff,
but
for mineral
the "sink
Geyer
&
67 TWill
Inc.,
Hecht,
Street, New York City, discussing
in detail the interesting current
situation in this stock, The March
as
He organized
decline
in
of
E.
duPont
I.
firm's "News Re¬
7; issue ofHhe
view" contains interesting details
several: insurance
on
stocks^ and
gives a comparative table of oper¬
ating results on seventy-foiir fire
and casualty insurance companies.
Copies of the memorandum ahd
the "Review" may be had from
Com-
pany.
.
.
Hecht
&
upon
re¬
'j
quest.
That's
where
the
"special issues"
come
in.
.
.
That's where
in too.
.
'
The Market
Inside
Dealers talking about need for fundamental change in psycho¬
ii/t
this wouldn't
bank holdings
•
It's just "bought" and is worth the price at
while.
Means end of boom period in
for an
in the
.
.
.
budget may go to $75,000,000,000 next year, indicating
inevitability of, forced savings plan. ,
.
Defense bond sales won't
War
bring in more than
"voluntary basis,"?v
.
$10,000,000,000 a year, at the outside, on a
Forced savings plus compulsory purchases
looked for.
of defense bonds
.
.
/;'(■
.
last week sug-i
gests his awareness of this.
He said he wouldn't know the
results of the defense bond sale on a voluntary basis until
Testimony before Congress by Morgenthau
.
:
June, 30.
(
Market
side.
v
,
,
time.
.
.
to
Moving
/" v
.
the
.
amount of
taxable 2s and tavable 21As,
indicated.
.
!"
either,
of the
pending announcement next
.
is dull again.
.
Little trading by dealers on
Professionals again talking new financing most
...
month.
.
.
.
sidelines
' - ■"■■(:
•'
;
•/
switching has been going on
.
T*
'
rvr
^
between
2Vi$ still
/"
.
..
New Cotton Exch. Member
At
a
meeting of the
Board of
DEALERS
Cot¬
March 17,
partner of
Managers of the New York
ton
Exchange held
Edward A.
on
Hillmuth,
a
Robert Moore & Co. of New York
City, was elected
Exchange.
in the
to membership
John S.
drawn
as
Vice-President
•**
'M
•
Boston & Maine
1st
"Highlights
for
of
R. R.
Preferred Stocks
on
1942"
j
Distribution
for Retail
and
•
•
considered the
you
Attractiveness
,
Reitenbaugh has with¬
a
Have
j
Boston & Maine
upon
request
•
Clark, Kohl & Eyman
55
LIBERTY STREET, NEW
.
4*'
';
■,
Good switch from 2s to
.
.shifted Reitenbaugh Retires
of the
From Bond & Goodwin
mean, under any circumstances, a
of Governments. .
.
On the con¬
which it is sold for a
Government financing,
which began when Roosevelt Administration came in. . . .
*
,/
'Feeling is Secretary Morgenthau received many more tax an¬
ticipation notes this week in payment of income taxes than he an¬
ticipated.
...
It's figured that the nation's banks and insurance com¬ Director of Bond & Goodwin, Inc.,
panies must contribute between $20,000,000,000 and $25,000,000,000
63 Wall Street, New York City,
annually, tpward war fiiaapping. .
■*'»
4-°M 1 -V
'A '
¥ '
trary.
Geyer
Huff,
.
the question of changing the methods of financing comes
bill,
direct to the Reserve Banks
public
from
12
new
Vv
Thus, the market could be supported at present levels
indefinite period.
*
And thus, a major re-distribution
.
Membert
developments
and then turn around and
ury
;
,
could raise billions by selling bonds
COMMON
United Piece
patents,
process
known
Considerable
vv:
.
American Hair & Felt
a
and float" method.
■■V
along with the power given to him in the second war powers
to sell new securities direct to the Federal Reserve Banks.
...
Eagle Lock Co.
of
seperation
.;>,'xVv'.r(
That, in turn, would suggest a cut in reserve requirements in
the near future.
Or perhaps just a change in the reserve re¬
Report from Washington is that Morgenthau will get his author¬
ity to purchase any outstanding Government obligations in the open
market "at or before maturity."
And he'll get this authority
partner in Tifft Brothers
100
best known for the develop¬
was
ment
commercial banks,
Eaton
24
i
way
move,
BOSTON,
Financial
than
more
Firemen's Ins. Looks Good
premiums immediately, back to idea that an issue is a success < if
the
:
.
Blake has become associated with
.(
■
to The
.::
definitely to the
.
.
quirement rules, according to one dealer, to ease the money position
in New York and Chicago.
It could be done by changing these
two cities from central reserve cities to reserve cities, for by that
"'(Special
E. Beers
-
,
logy of buyers of Governments. . V
Away from the idea that all
issues must be tremendously over-subscribed and must rise to big
Maybe later in the year, maybe this summer, but not
are
"
dozens of rumors akin to these—all indicating
change but none pointing
of
discussion
are
especially, to purchase the new bonds.
f
held
.
turity will be attempted, and a clause will be inserted permitting
conversion of the non-maturity issue into a maturity issue after the
Weeks,
;
impossible to discover which have a basis of
will be done with coupons,
Kit-
Secretary and Assistant Treasurer.
co.
and Chisholm &
President
...
validity and which have not. . .
will be tried within a few months.
follows:
H.
Reading) rep¬
resentative for Allen
...
tion that it is next to
.
(with the - Reading (offifce
Young & Co.,. in the
Trust" Building, jj Mr.
Snell was formerly
<
'
Harry
and
Dersch
Jacob
sociated
.
.
What Change?
Chapin, Kidder, Peabody
4& Co., Chairman of Board; Herman F.
Clarke, Estabrook & Co.,
Vice
Chairman;
Alexander
H.
Bright, - Elmer H. Bright & Co.,
Treasurer
(Carl
.
.
John R.
in; the
Raymond Snell have becorqe as¬
Francis I. duPont & Co. in 1931
...
'
at the height of the depression;
And if you want to find a basis for the next forecast, glance at a
the firm expanded to have twenty
listing of the Government's bond and note issues outstanding today.
offices and in July of 1941 was
There are 33 different bond issues alone!
4
The market may
merged with Chisholm & Chap¬
be reaching the saturation point as far as ordinary new issues are
man
to form Francis I. duPont
concerned.
The time may be approaching for a "change"—of
& Co. and Chisholm & Chapman.
some
nature to reawaken
investors'-interest in purchasing new
Before going into the investment
securities.
*
business, Mr. du Pont was a Vice-
exact
were as
Redpath (and
Co.;':'^
predicting that total.
.
(Boston 'Change Firms
|
Elect 1942 Officers
&
past was an officer of Janney ,&
of Allan N.
.
.
with G. L. Ohrstrom
was
was trading manager pf
local office of Auchinclo^s,
Parker
$150,174,000
on
March 16, $150,004,000 on March
17 and $150,230,000 on March 19—
to be paid off with income tax re¬
ceipts.
■£
I-)
-r
open
.
Co.,
Co.,
the
matured this week three other is¬
sues
& Co.
Mr. Jordan was for¬
with them.
simi¬
ist, died on March 16. Mr. duPont
\
{
merly manager of the trading de¬
partment for Charles A. Taggart
accepted.)
was
brings home again the terrific total of spending these days and the
continuing need for financing.
1
The next deal will come in April, then. .
.
Maybe, early
| Leon Brice Hadden, and Fred A.
j Vander Meer, also previously with
Allan N. Young
rate
with
associated
,;i'
1-1397
y.
N.
■PHILADELPHIA, PA. —Allan
N. Young & Co., Inc., 225 South
15th Street, announces that Alvin
W. Jordan has become associated
>'
Chapman, 1 Wall
Street, New York City, and inter¬
nationally known research chem¬
<King, Wulf & Co., Michigan Na¬
tional Bank Building, Mr. Yonk; man
having been elected a Vicei President.
J.
Henry Geurkink,
,r"
Equivalent
letting the balance go down that much, for that was the last state¬
ment before the income tax payment date.
...
But, nonetheless,
the extent of the drop in the Treasury's cash balance in a few weeks
become
As's'n
Jordan With
rate
of
Harper,
Wegusen
&
( Yonkman, Inc., and J. Alan Smith,
sales manager for the same firm,
have
Zinc
HAnover 2-8780
St., N.Y.
Teletype
(ex¬
Price 99.951. Equiva¬
approximately 0.195%.
rate
There
If you
George Yonkman, formerly Pres-
bids
accepted
lar issue of
'
—
/
(99% of the amount bid at the
low
ing in the
RAPIDS,
Cigar-Whelan
Wallower
Members N. Y. Security Dealers
Average
^
releases, he was requested to
GRAND
(
Mfg. Co.
M. S. WIEN & CO.
re¬
25 Broad
approximately 0.210%.
leave Berlin.
|
are
for—$535;473>006
Low—99.947.,
1-576
daily for several months. Because
I of' his refusal to broadcast Ger¬
:
issue
High—99.975. Equivalent
approximately 0.099 %.
BELL TELETYPE
correspondent for the National
Broadcasting Company in Berlin,
where, he reported the news twice
With King, Wulf Go.
Reserve
;
his recent experiences
Ywkmi I Smith No*
for
Range
as
man
ji
Mexican Internal & Ext'l Bonds
cepting two tenders totaling $90,-
NEW; YORK
STREET,
PHILADELPHIA TELEPHONE
;
2-3600
REotob
views of the situation in Germany,
on
United
Evans
The follow¬
*
Corporation. Alexander Drier, ra¬
dio
commentator, will give his
( based
Sharpe
000
Dealers Association
York Security
NASSAU
4 5
to win the war will be
presented by Clarence J. Reese,
of
fx
INCORPORATED
Members New
necessary
*; President
-V'
'
the first named subject,
while the problem of production
ing
Merrimac
'
,
preferred)
Total, accepted^,-,- 150,273,000
Chairman of
Ganson Purcell,
16.
of this
Total applied
charge of the program.
the Securities and Exchange Com¬
.
&
13, were
Federal
March
on
details
ing
126, at the Waldorf Astoria Grand
j Ballroom, according to the com¬
March
on
the
at
opened
v/
|
offered
were
Dealers Association 16th Anniver¬
mittee in
&
Brown
World's Fair 4s, 1941
genthau announced on March
by men
prominent
in
their
respective
fields, at the New York Security
sary
(common
-
timely discussions,
"The Future Aspect of the Overthe-Counter Markets," "War Pro-
v>i -.j
Merck & Co., Inc.
REMEMBER
short
Three
Thursday, March 19, 1942
Results Of Treasury
(Timely Discussions
r
CHRONICLE
THE COMMERCIAL & FINANCIAL
1144
immv*ow«.wjr>
Tel. CO 7-5593
YORK*
Teletype NY 1*1047
@FedFRASER