Full text of Commercial and Financial Chronicle : March 19, 1942, Vol. 155, No. 4056, Section 2

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Filial Edition

THURSDAY

Number 4056

New

Section 2

-

Office!

/Reg. TJ. S. Pat.

Volume 155

In 2 Sections

York, N. Y., Thursday, March 19, 1942

Price 60 Cents

a

Copy

GENERAL CONTENTS
;

FROM WASHINGTON

Editorial* v-Vv

/'/

1

Page

Private International
Sales Taxes Must

Debts.,

1146

,

Come...........
The "Pour Freedoms" in
Practice.

AHEAD Of THE NEWS

114?
1145

Regular Features
Financial- Situation
From

The industry of

:*

Washington is "thinking" and one of the outputs
or productions of this
industry for sometime past has been the ques¬
tion of whether there is a need for Congress. The bureaucrats have
not seen any purpose it served, and unquestionably if the matter of
streamlining the Government were left to them this would be one
and perhaps the only agency they would cut out.
It
is a fact, too, that over
period of time, [wearied news¬ upon them,; Instead of maintain¬
paper observers of the Washing¬ ing legislative bodies as dummies,
ton
scene,
have come 1 to agree why not show that we were more
bureaucrats.

It

was

efficient; than

not

that the observers liked the situa¬

Stalin

tion but they reasoned that it had

thus

about and there

come

they

could

was

do,

do

either

is in

a

Hitler

way

that

agreement

Hitler, it

Congress

particular

any

the

didn't

was

Data for Four Weeks End. Feb. 28
1158

Fertilizer

of

was

:

the

fact

that

.

sham

a

Retail Prices Again up in Feb.;..
December Crude Oil Production

do

bureau¬

our

parliamentary set-up. crats were-willing to do away
If we were going to
the
ape those with
expense [of
Congress
countries, why not show some shows an honesty on their part
American ingenuity and improve
(Continued on Page 1167) j

.

.

1165

Weekly Steel Review
1164
Mooays Commodity Index...
1162
Weekly Electric Power Output
,1163
December Statistics 1.........1156

to abol¬

to

So,

Index.\i,,'. <v^1164

petroleum and Its Products.',......

admitted

the

Price

Coal and Coke Output;..
1163
Ancnracrce Shipments
(February) 1156
Bank Debits .1162

control the jobs, not save
money on them. /'?'■.;//:'/;;
[//^f;

pointed out, still
maintains and pays the members
of the Reichstag, and Stalin also
has

bureaucrats

1157

.

.

1158

February Pig Iron Production.;....

1159

Latest copper Statistics Data......
Bankers Dollar Acceptances
V

1160

>

ir

emuaiy.

Cottonseed
Lower

.

..

receipts

Continue

.,;... .v..

.

....

v,....

'"

Miscellaneous

Urges 1942 Sugar Crop Payments... 1153
Buoyi-Syntheuic Rubber Product... 1153
Urges Single war Buying Agency.. 1153
Further Curbs

Instalment Credit 1153
Wire Controls....... 1153

on

Granted

Should

Finance

Small

.business

1154

U. S. bxpo.ts

Higher in 1941...

1154

Create Caribbean Commission......

115*

reo.

Commercial

ABA

Mortgage clinic Speakeis.....
Brazil Cotton Crop Seen....

1154

Endorses

1154

Failures

Down...

1154

j-iower

ABA

A.I.B.
rDR

the

on

London

sessions, with the
war
developments.

ther

Stock

market

Convention

Production

Exchange remained modest in

generally

inclined

to

await

fur¬

"Food

for

Freedom"

Speakers........

Warns of Price milation......

Cadet School

F.

Dealings

1163

Febiuary Cotton Consumption..... 1164

cCB

recent

-

46),......».,....,..
1162
Outstanding
"
/ ;:
(March 13)...,1162

Commercial Paper

oays' Banks

European Stock Markets

who

'

our

dictatorships have wanted to

function.

1168

1147

Bill

Signed....,

Ofiensive

1154
1154
1155

1155

Fiist—Nelson 115a

W. Dodge Reports Increased
Building
L,............ 1155
..

FDR Opposes Army-Navy Merger.,
NYSE
Members yote
Commission
.

1155

The advent of Spring and the closing
Rise
.....................1155
phase of the Far Eastern struggle presumably means Hugnes Heads Retirement System.. 1155
J.
W. Duvel Retires.:..,,.......1155
that
fresh
actions
soon
will
take
place.
They
may
disclose
insolvent Natl Banks Liquidated.. 1156
whether the initiative is passing from the Axis to the United Na¬
Insolvent NatJ Bank Dividends.... 1159
Plan conversions Up Unemploym't 1156
tions, and much will hinge on^
Draft
Bill ior Small Business in
that question. -//.
rency, but few shares are offered
War Effort
1156
by holders. Strict regulations now Resigns from N.Y. Tax Commission 1156
v
Price y trends -i were rather
prevent excessive price changes. Uiutas Protection of Ships, Harbors 1157
indifferent in London, pend¬
Other European markets remain Business Approves "Staggered"
ing answers to the next war
of

the

first

of

manner

cerning the

......

Congress be eliminated. The point ish a governmental job and save
was.; that
the
bureaucrats
and the money." They do not figure
newspaper » observers
were
in things in terms of money.
AH
serve

.

All

1162

Commodity Prices—Domestic Index 1157
Carloadings
......1160
Weexiy Engineering Construction.. 1157
■>-:February Data
1159
Paperboard Industry Statistics..... 1159
Weekly Lumber Movement...
1160

were

not want

Yields...

State of Trade

>

will¬
ing to do this, because usually the
bureaucrats do

and

:

General Review

[ f

tribute to

a

1145

the

Items About Banks and Trust
Cos.

or

expense.

bureaucrats that they

so

1145

Foreign Front.ii.v.U

of

them, Weekly

with

away

saving the

It

really
why
as a
matter of expense, a slight
relief to the taxpayers, shouldn't

nothing

and

?•

1145

*.

Moody's Bond Prices

,

the

News

On The

,

with

.v

....;..,................

Washington Ahead

strange notions appear to be abroad con¬
in which this nation and the individuals

way

it should conduct themselves

compose

this

at

time.

Many of these ideas, weird though they be, need cause no
uneasiness. Many tens of millions of Americans
have always
had their

own

conceptions of the world and all that is in it.
certain, would put an end to this habit of
thinking and discussion even if he could. When, however,
No one, we are

foolish notions

gain large numbers of aggressive supporters,
championed by men or women in public life or else¬
where with
large influence they may easily become a
menace;
Some such danger
appears to be threatening us
at this moment.
Broadly similar "political" factors have
already upon several occasions done serious damage to the

or

are

of the anti-Axis
powers

cause
as

attest the Greek

in the strictly military sphere,
campaign, the fiasco on the Island of

Crete, perhaps upon one or more occasions "in
Libya, and
certainly in the Java Sea. We can not afford analogous
errors

here within

where

they

our

borders.

own

threaten they could

now

In this broader

sphere

cause much more serious

injury.
Wholesale misapplication of

faulty, half-true dogmas;
ought to be a cold-blooded
wholly erroneous deductions

emotional attitudes toward what

business—the conduct of war;

from what is believed to be the
practice and experience of
such countries as
Russia,

Germany and Japan; large admix¬
"planning" and "managing"

tures of the New Deal notion of

nearly everything short of the solar system; and simple,
ordinary, every-day, slip-shod thinking appear to be the
roots of the

evil, but, of

the hazards by which

course,

the Vice-President

quoted with evident approval from the
diary of a soldier in the first World War, which he appar¬
ently believes would serve as an excellent motto for every
man, woman and child in the land

c//vy;V.

(Continued

today. It reads: "America

Page

on

1148)

'

....

,.

phase.

Gilt-edged issues

mained

in

fair

dull

most

home

rails

Shipping

sessions,
«

showed bet-

ter results than other depart¬

ments,

and

continued

a

little

buying
Latin

among

American

securities.

-

The

of

further

submitted

aspect

of

week,

by

to

lend-lease

associates of

our

the United Nations

the

f

supplies by the

war

United States to
in

"'/.'/-v

Activities

increases

deliveries of

>

censor¬

recorded

were

quarterly report
Congress on this

the

effort,

war

President

Hour

Law

Bond

Recreation

port

Reports from French markets
again reflect the mounting fear of
inflationary
occurrences,
owing
to the

tremendous

costs

of

the

German occupation.
Equities re¬
in heavy demand, partly as

main

of

matter

flight from the

ments

to

Roosevelt.

anniversary of the lend-

Congress.

under

viewed with

Roosevelt

re¬

Accomplish¬

-

the

measure

were

satisfaction, but Mr.

indicated

that

1158
1158

Issue Values

.

(Feb. 28)

No-Detriment

Funds

Civil

for

the

aid

far

Functions

Department

cur¬

(Continued

on

■

Page'1166)

■

■

file of

bound

correspondence,

your

we

find

a

we

have

subscriber

copies dates back

1906—and still another to

1880.

to 1887—another to
Can there be any doubt in

about the value of binding your copies of the
Chronicle, of having at your finger tips a complete

mind

Financial

record

of

all

financial developments?
The new
Financial Chronicle was designed for binding. With the
larger
page size, bound volumes will be thinner, will open flat and
important

will be easier to handle.

This is
we

want

merely

you

a

to get

suggestion-—passed along to you because
full value from your subscription to the

Financial Chronicle.




1160

for Peru.....;.,..,

1160
1146

to be

Conserved.,
Curb Exch. Short Position (Feb. 28)

1146
1146

N. Y. Reserve Bank Discusses Infla¬

Gulf

vital points

by hostile
This

daries

Finland

and

the

Baltic
exist

not

of Soviet industry which
as a base for attack.

Coast

and

it

small I States

be made

can

is

close

use

of

powers

that, judging by the strategic necessities of the
Soviet Government must ask for those boun-

means

situation,

of

that there should

necessary

the

which

boundaries

has

it

last

of

fought to defend against Germany—the
June.

-v.*. '■

Control

Price

tion and

1149

-

possible exception, that the Russo-Polish boun¬
dary was admittedly of a temporary nature when the war be¬
tween Russia and Germany started, and its final
configuration
will have
to

to

two

say,

Sir Stafford

be worked out between

what

1

am

glad

friendly countries, Poland and the V. S. S.

/?.—

are

now,

Cripps.

Named Alien

Property Custodian... 1149
Used Tires, Tubes. 1149
FHA Reports 1941 Operations.,,,,. 1161
Price Ceiling on

Dominican Sugar Crop

Larger......
Living Costs Again Advance........

1161
1162

Seeks to Mobilize Farm Labor......

1162

Wheat

Corn

and

Price

Limit

Swiss

Railway

Dispute.,.,.,;.....
on

Heads Delaware

"The Financial Chronicle has been so useful that
had the copies bound and kept for reference."

the

There is this

.

One Reader

whose

War

"Item Veto" Power.....

Currency

Labor

our

of

extended falls far short of Retail Pood Prices Continue
what is needed to turn the tide
Advance ...............'■>
1161
Mortgage Financing Lower in Feb.. 1161
toward victory.
Curb Speeding to Conserve Tires.
1161
so

to

1158

War

,.....,...

Lend-Lease Aid

FDR Backs Labor Board in

Running through

to

Army-Navy Pay Increased..,...'.... 1159
Congress Pension Law Repealed
1159
N. Y. City 1159

unusually extensive Executive

had arrived in Australia.

also

last Wage-Hour Divls. Now in

Paper

MacArthur

........

Convention

1159

FDR Seeks

Gen.

Cancels

Effort

lease program was marked
by an

that

Leningrad it is essential that the Russiana should

protect

o

control

1158

Institute

NYSE

The 'Tour Freedoms" In Practice

1157

„

Winant Meets With FDR.,
Elec.

The first

degree, yesterday, by the

.'.

Flying over.: /
/ J'»■ ■'■■■'/
Hyde Park....,,.....,:,,.,,...... 1157
Alaska Highway Nears Construction 1158
oavings BanKs Subject-to Wage-

London market was heartened
a

'.....

Prohibit Civil

to

news

a

Steep

were

while

Work-Houis

:
Lend-Lease

steady.

were

stocks

ship. ;

pur¬

Industrial issues

in

re¬

demand,

largely for reinvestment
poses.

shrouded in the silence of

r

..

Loans

Profits

1147

....

1168

1941 Cotton Loan...........,.'......

1168

Study India as Supply Base
.."lies
U. S.-Canada Incpme Tax Pact...... 1168
Allocation Systerh for Wood Pulp..- 1168
Gerard Swope Quits Treasury,.,... 1168
Sales Tax Levy Debated
1150
Court Restricts Wage-Hour
Authority .....
1164
FDR Reports First Year's Lend•

1152

Group Life Insurance (Growth of).

1152

Lease Aid

•

•

preoccupied

on

Cotton Acreage

Output
Labor Agrees on

Strike Ban
Urges Allocation of Cotton Textile
Output
1148
Merge Farm Marketing
1167
National Bank Changes
1167
Named to WPB Steel Board

1167

questions of

their

future

ditions necessary to her own security.
These
tories

security.

like

A

(Russian

embodied

aims)

war

in

nowhere

Soviet

the

*

Union

*
go

*

beyond the

when

Hitler

terri¬

marched

against it last June.
that

They are in no way incompatible with
security in Europe which the framers of the Atlantic

Charter sought to insure.

Security for Europe will
does

not

feel

Evidently
a

century

The

fact

the

"four

will

and need

Prophets of

are, indeed, conditions of it.
unattainable if Russia herself

London

freedoms"

sort encountered

ago.

conduct of the

to

They
prove

secure.—The

precisely of the
of

servers,

1152
1151

with

preoccupation on the part of Russia is no less natural, and
Russia claims the right, which Washington and London
equally
claim in their own behalf, of judging for herself of the con¬

Radio, Phonograph Output Stopped 1152
Correction

asks

more
than material supplies.
As the Atlantic
Charter shows, both Britain and the United States are
rightly

1163

Co. Bankers Assn..

Bank Reports

Russia

1163

Rubber Footwear... 1147

we

arp confronted take very tangible form. Only the other day,

"Times."

are

headed

for

by the "14 points"

difficulty
a

quarter

~

occasion
not

and

no

surprise

should

not

among

in

any

qualified
way

ob¬

alter the

war.

post-war millenium
take notice of it.
\
a

would, however, do well

l

1146

Editorial— \

Power Of "Item Veto"

PINAWClA®HI^NICLE:

riE COMMERCIAL St

v
■.

•

.....

\

/:/
."V--•

-v

i

■

V

Editorial—
/

Asked By President

-

President

Private International Debts

advised

Roosevelt

Prodigious

sums are being ladled out by the United
States Government to other nationsi on.lend-lease account
•

Senator Vandenberg (Rep., Mich.)
on Mar.
10 that he believes the
power

of "item veto"- over indi-' for

vidual provisions in appropriation,
could be legislated without

bills

war

nance,

and other.. purposes.

which
the

now runs

This form of international fi¬

into billions of dollars, tends to ob-;

-

r;

Thursday, March 19, 1942

^ ;

:;■'
;

•.

•

" \
•

•
*

'■

.

-

•

'.'.v.

f

■

v

Sales Taxes Must Come
•

President Roosevelt, through Secretary Morgenthau,
demandirig from Congress, new tax legislation which shall
be planned, as the Administration insists to raise, during
the next fiscal year, the first to which it could conveniently
be " made applicable, $9,600,000,000, more than would be
collected under existing law.
It this demand is acceded to,
is

,

substantial private, debts still outstanding
-The private debts nevertheless! form/a
who has sought for some time to tremendous
aggregate.
They require continued study and
as it is almost certain that it will be so far as concerns the
give' the President/'item vote"
patient efforts toward reasonable compositions, where de¬
power,
Mr. Roosevelt suggested
additional amount to be exacted, the annual total brought
fault has occurred and":a remedy seems:feasible./:
/ ; rVj
that the process be tested by in¬
m by Federal taxation will exceed $27,000,000,000.
This is
serting an "item veto", clause to
It has long: been ^apparent to the well-informed/:that
a higher Aggregate than this nation or any other nation in
an appropriation bill which would
British authorities are keenly aware of the basic require^
the world ever took from the pockets and incomes of its
only apply to that bill.
Senator
ments on foreign loans.
The: 19.41 report of the- British
Vander.berg informed the Senate
-people during any- year in the recorded history of mankind.
that he would offer such an "item Council of the Corporation I of Foreign Bondholders shows
The intended exaction is so enormous and its impact upon
veto" amendment to the next ap¬
clearly that London was not remiss in this matter, -even
the lives and wellrbeing of all the people must be so. farpropriation measure.
• /
though a World War was raging; and defaults were increas^
The Senator made public the
reaching and. profound that it is of the utmost importance
ing. Calmly and steadily, the British protective: organize that all the
following portion of the Pres¬
probable reactions and consequences shall be
tion
continued
a task which it first took up in 1873!
At
ident's letter on the "item veto":
deliberately examined and the ultimate effects of each of
various
times,
in
the
As you know many of the
past the British Council has declared the several
expedients of taxation that have been or will
States have it.
I [said Presi¬ that a bond never
dies, which is; an excellent guiding prin- be
dent Roosevelt] had it when I
proposed so carefully weighed, one against the other,
^^
'c-■ i/::
^
that: the highest available competence shall control the
; was
Governor of New York
Judging entirely by external appearances, it>would legislative result. Fortunately, there is no apparent dis¬
and, although the Legislature in
both branches whs Republican seem that there is little of the
cooperation on our own side position on the part of the majority of the Committee on
and
I, as Governor, was a of the Atlantic which the British have found advisable
Ways and. Means of the House of Representatives, the only
Democrat/ the power- was car¬
and useful in this debt problem.
• The State Departmerit
ried out in good faith on both
place in which Federal tax laws can constitutionally origi¬
sides.
My recollection is that, and the Securities and Exchange Commission send, ah an¬ nate,
blindly to follow recommendations from the Executive
; as
Governor,
I only vetoed nual visiting board to the Foreign Bondholders; Protective
Department.; On the contrary, the Democrats of that Com¬
three
or
four
items
in
the Council.
Just what this accomplishes is not entirely clear,
mittee seem, rather wearied by the pedestrian character of
whole four years I was in Al¬
for the Council seems seldom to! figure in the Washington
the suggestions emanating from the Treasury Department
bany and no effort was made
to pass the vetoed item over my measures respecting dollar bond defaults.
Several ! "set¬ and from all those exercising the executive authority to;
tlements" have been effected through the State Depart¬
disapproval.
recoftimend.
Without exception, these high functionaries!
In regard to the present situ¬
ment, although the Council was set up for the purpose 41
ation in Washington, there are
appear to share a strange incapacity to perceive anything in
the request of this Administration and. has a generally ex¬
two
schools of thought.
Tne.
existing conditions calling for more than mere additions to
first
is
that
a
constitutional cellent record oh negotiations voluntarily instituted, with the
existing rates applicable to present income-tax payers,
amendment
would
be
neces¬
it by defaulters.
It is suggestive that our American Coun¬ individual and
corporate, to the taxation of estates and
sary.
I don't hold with that cil no
longer issues an annual report, although the British
school.
gifts, cosmetics, tobacco and alcoholic beverages, to trans-,
Council continues this practice.'
I think the other method is
portation, telephones, and telegrams, and to a few other:
The New Deal attitude may fairly be assumed to stem
constitutional whereby the leg¬
long established objects of exaction.
1
islative branch of the Govern¬ from
slighting references which Mr. Roosevelt at times: has
To the Executive Department the sales tax, in each and;
ment can pass legislation with
made regarding foreign dollar, bonds.
But the fact should every conceivable form, remains anathema, as it has been
the item veto power in it.
The
whole process would, it seems be apparent even in Washington that a careless official at¬ ever since Mr.
Roosevelt, not yet inaugurated as President,
to me, be tested out by insert- titude on
private international debts is a distinct disservice intervened to prevent a Democratic Congress from present¬
ing a simple clause in the to the
country in many ways.
The continuing defaults by ing the sales/tax measure which it approved for the sig¬
appropriation bill and applying
some of the Latin-American nations, for instance,
hamper nature of President Hoover in an hour of urgent national
only to that bill.
■/
the Good Neighbor policy- greatly,, for there can be: no need
for higher revenues. The continued opposition of both
This, at least, would get the
matter before the Senate and I question of the bitterness felt by. investors: in. the United the President and the
Secretary of the Treasury to a general
think I am right in saying that States over the defaults.
It is no secret that even some, of sales tax and
to any further lowering of the exemptions
an amendment of this kind to
the La tin-American statesmen concerned feel embarrassed which enable so
many millions of adult Americans com¬
an appropriation bill should be
over
the situation, for they realize .that a genuine rapbrought up on the floor at the
pletely to avoid all direct payments of taxes was again dis¬
prochment with the United States is not easy to achieve, played by Mr. Morgenthau during one of his press- con¬
time the bill is pending.
while such important matters remain unsettled.
if*
V. - ferences last week. Yet it has become unmistakably evident
^ The
l4: Paper $ Must Last Longer
Treasury Department:might take a little more in¬ that a majority of the Democrats of the Ways and Means
i
Pointing out that "war de¬ terest in this question, from the standpoint of the revenues Committee are now irrevocably convinced that a sales fax,
mands, make it necessary to con¬ which Secretary Morgenthau anxiously seeks. .Ostensibly in some
practicable and effective form, has become a neces¬
serve
material and labor in the in
order to gain a little revenue, Mr. Morgenthau calls
sity
of
the
hour. Equally, moreover, most of those who will
loudly
printing of our currency," Allan
and persistently for Federal taxation of our State
initiate the new tax measure * are deteUnined that legally
Sproul, President of the Federal
sanctioned evasions of tax responsibility by so many wage| Reserve Bank of New York, in municipal securities, and he has justly been charged
advices to the banking institu¬ bad faith.
-Yet,- insistence upon; 'nothing more than
earners and citizens who arer as abundantly able as ;any
tions in the District under date
faith by Latin-American obligors would bring in
others to contribute to the war funds must be stopped by the
of March 6, said:
some revenues to our Treasury,
through the avenue of the only means available, a further and material lowering ol
The Treasury Department has
No quibbling is the exemptions.
accordingly requested that all existing provisions of the income.. tax.
"
;
possible
steps
be
taken
to possible as to the ability of the Treasury to achieve this,
::--;! All history has demonstrated that the; safeguard ol
lengthen the life of paper cur¬ for Mr.
Morgenthau has in his hands the allocation of lendevery people from excesses of governmental wastes and
rency.
This bank, therefore, is
lease and other funds which are being granted And loaned
lowering the standards which it
extravagance can have but. one sufficient foundation, the
to
almost
all
Latin-American
States.
There
is
a
uses
in
glaring tax-consciousness of the masses-whose mass-will must in! the
determining whether
I
currency is fit for further cir¬ need for simple insistence by Mr. Morgenthau for observ¬
long run control the expenditures. Beginning in a very
culation and will return to cir¬ ance
by the debtors of .their contractual obligations, or for small
culation
some
notes
which
way, with the first legislation under the Sixteenth
reasonable compositions, before fresh funds are loaned.
heretofore have been removed
Amendment, with its entering wedge of a surtax of onlji
The report of the British Council mentions the marked
from circulation when received
l%, the masses of American voters were taught that by the
by this bank.
improvement in the foreign-exchange position, of most easy .device of progressive surtaxes upon incomes and ex
Your cooperation is requested Latin-American
countries.
Large purchases of commodities emptions from even the minimum exactions large enougl
in explaining this step to your
by
the
British
and
United States Governments for;war and to exclude the great majority of them from the requiremen
customers, and also
in your
defense purposes are noted,
together with the fact tha!t to pay anything whatsoever, there could be one numerically
sorting of currency for ship¬
the .United States credit
ment to us.
policy; has been..maintamed;: and large group controlling the, Government and, voting the
iWMIIK
extended.
"This policy has been strongly criticized," the
taxes, effectively separated and apart from another anc
British report delicately adds, "on the ground that, in.,cases
Curb Short Position
much; smaller and politically helpless group by which th(
Short interest in stocks on the where the beneficiaries are* in default on their previously takes * were
paid. It was this discovery, consciousness o
New York Curb Exchange during
existing external obligations, • insufficient consideration which swept, rapidly over the western world during the
February aggregated 12,032 shares has been
given to these claims.": /
first two decades of the Twentieth Century, that led to the
; against 16,045 shares on Jan. 31,
The, British report is instructive in. another particular ; huge tidal wave of: enormous: governmental extravagance
!the Exchange an no unced on
March 10.
Certified British-owned bonds of enemy countries continue that has reached its extreme
height and its greatest weigh
Four stocks showed a short po¬ to be served from blocked
funds, it appears, where > such and mass, in the United States since 1933.
sition of 500 shares or more. funds are. available in London.
Far from taking such* an
:
The retail sales tax and reduced personal income ta^
These were:
*
Feb., !42 .Jan., '42 enlightened view, our own authorities forbid all payments
exemptions ought therefore to come and to come quickly
American Cyanamid Co. (B
on
enemy country securities outstanding here.
Indeed, not only as expedients appropriate-and well-adapted to mee
non-voting common)
1
1,026
1,066
even
N. Y. Merchandise Co., Incr
"
ordinary trading in the securities has been effectively the present imminent
exigency, but as well because the;
a

Constitutional

a

letter

In

amendment.

Senator

to

Vandenberg,

scure

very

internationally.

_

v

,

.

.

r

.

•

-

■

.

.

,

v

.

.

-.

!

"

.

~

—

,,

r

,

'

.

-

.

«

Aircraft, Inc

Wichita

Rive?

.

.

593

(common)

Vultee

Oil

2,700

1,000

Corp,

(eommon)




500

300

halted in

our

markets, whereas transactions continue in the

London market.

,

are

the best and most effective available measures for

bring

ing full tax-ponsciousness home to the greatest possible

num

Volume 155

ber

and

m

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4056

1147

actually controlling and effective number- of
suffrages will determine the Federal elections
throughout the rest of the war and probably throughout the
V ®us*n^ss activity generally continues to show'an upward trend,
next ensuing decade.
There are no other legislative meas¬ though
in some areas tne conversion from civilian to war
production
ures within the command of
Congress so potentially cor¬ is having a rather drastic effect. Business failures, wnich had been
rective in their operation and, more than that, the high declining sharply through January of this year; may expand steauny
over the next tew months
because of growing restrictions on
sup¬
efficacy of such taxes in the! production of revenue is no plies, observers state."
*
7
a
longer questionable. It has been reliably-established by
low
lor
recent
years
was$
experimentation under the auspices of many States and achieved in January wxien buo.- i -Loading of revenue freight for
ness failures were at the
cities. .777" 7
rate oi the weeK ended March 7, unaieu
.^77777^'7''' :'''"7777 ;V:1—
an

The State Of Trade

those whose

,

.

forty five out of every 10,000

"

'Under

ordinai^y circumstances popular oppositionto

the

Dun"

part of the United States upon remote and scattered

has

a

somewhat

one '

an

itations

to

personal

or

family expenditure.

on

production
7 i

difficulties

iace

tainer

:

of

in

store :

non-inoustriai

continually shrinking
;of

cause

power

to

con¬

dis¬

in

facing

are

be¬

volume

reduced

due

of

retail

purchasing

wartime

-

taxation,

cars

years ago.

week

wm

an

impressive advance in

durable

production

and

non-durable

goods

has been under way since the turn
of the year, despite all retarding

factors, and f urtner gains for in¬
of possibly sensa¬

dustrial output

tional scope were seen in immedi¬
ate

prospect by officials at Wash¬

Federal

predicted

Reserve

industrial

December,

production

1941,

the 190 mark
of
.

or

rise in the

a

Board

level

index

from

of

167

better, by the

of

the
to
end

1942.

A
on

or.y7o

at

a

industrial

unemploy¬

aver¬

ten

It

.

the
at

this

mgn

&

penou,

oteei

uutput is
of

insti¬

sched¬

capacity,

indi¬

and

hign, 9'/.*%
operated, witn
l,bu*,oou tons.

production
month
oasis

ago

operations

of

or

For

ions

ior

1941

week production was

tne

weex.

were

i,L34,uuu
tne

lute

1,604,-

bloc

Latest

Congress

with
of

to

the

four

the

$191,733,000
1941.

second

average

reported

tor

of

assurances

all

previous

according
tne

to

was

February

Engineering
50%
higher

corresponding

leauers
to

ap¬

tliat

form

some

control

wage

being considered.

is

"Demands for

labor,

wnicn

'crackdown'

a

started

again

rumble last

week, reached
Congress Monday when

in

on

as

a

a ■.

roar

mem¬

bers asserted that tneir mail from
home

large and

was

subject

of

the

loud

40-hour

on

week

tne

in

industries,

closed shop dis¬
putes, and time and one half pay¬
for overtime.

"Congressional

leaders

President Roosevelt

at

advised

the

House tnat the House and

the

on

were

of

verge

White
Senate

enacting

labor

legislation of
their
own
making unless an Administration
program is supplied at once."
President Roosevelt

under¬

was

stood to have advised his

legisla¬
tive leaders, the Associated Press
reported, that the whole labor
production problem — involving
questions ranging from a "wage
parity" to temporary suspension
the

week—was being
by the Administra¬
tion.,.,..;,! ;,7■

Rubber Footwear Is
Price-Fixed by OPM
Maximum manufacturers' prices
for waterproof rubber footwear
nave

of

been establisned

individual

as

a

agreements

result
nego- "

i94i

consumption and reduces demand xor commodities, ment has not been rising for sev¬ month and up 2o% compared tiated between the Office of Price
Administration
and
manufac¬
especially luxuries, during times when all the resources of eral weeks, while total unemploy¬ witn January, 1942.
turers
at
a
recent
meeting in
ment for the country has actually
Federal
construction
was
pri¬
power and production are required for actual subsistence
Washington, Price Administrator
and support of military and naval operations, so much the declined some 200,000 from 4,000,- marily responsible for the near- Leon Henderson announced on
000 to 3,800,000, were forecasting record
voiume,
climbing
171% Mar. 11.
better. It is an effective preventative of inflation in coma steady reduction over the clos¬
over
the average ior tne montn
It is stated that the
agreements
! modity prices and in effect very practically a substitute for ing months which would bring last year, and 32% over last
establish prices that are in no case
enhancements of prices which might aid the unjust enrich¬ the total down to 2,900,000 by late month, to reach the second highest
higner than those in effect Dec.
ever
registered.
The 3,
ment of chiselers and profiteers. If ordinary demand could fall, notwithstanding the influence average
1941, when Mr. Henderson re¬
of conversion programs, curtail¬ stepped-up pace of Federal work
quested manufacturers not to ef¬
raise the price of an article to $1.05, and no higher, the mar¬
ment
orders and raw materials boosted public construction 89% fect
price increases.
Prices on a
ket price is not likely to be less than $1.05, but if the sales shortages for civilian users.
over a year ago, and 22%
above substantial number of items are
The heavy industries continue a month ago, to its second highest
tax takes five cents upon a dollar purchase, it is not im¬
lower than the Dec. 3 level.
to
show
wide
gains
over
last peak. Private work exceeded the
Tnese price
decreases reflect
probable that the same $1.05 will obtain the article and
year's
figures, though showing January weekly average by 70%, the reduction in crude rubber
meet the tax that has been imposed. Other marked advan¬
but
was
light weekly setbacks from time
50%
below
February, content ordered
by the War Pro¬
tages in a time of emergency are the simplicity of collec¬ to time. The production of elec¬ 1941. :7'777^7///"
duction
Board
to conserve
the
The
Federal
Reserve
Board
es¬
rubber
tion, the relative efficiency and low cost of collection, and tricity dropped 0.5% in the week
supply.
Press
advices
ended March 7,
timated
that
to 3,392,121,000
department
store from
the indisputable fact that the methods of administration
Washington also state:
kilowatt hours from the 3,409,907,- sales^n the week ended March 7,
The agreements also provide
have been thoroughly developed and worked out in the
000 generated in
the preceding .were
28%
larger than in the
that all discount schedules that
actual and recent practice of numerous States and munici¬ week,7 according to the Edison corresponding week last year.
were in effect on Dec. 3 are to
Electric Institute. This was an in¬ 7
In
the
week
ended
Feb.
28,
be
palities.
There are other well-established advantages in
retained.
OPA
officials
retail sales taxes. But a final one, which ought to appeal crease of 12.9% over the 3,004,- sales were 19% above last year,
pointed out that the agreements
639,000 produced in the 1941 week. ,and in the four weeks ended
; establish maximum prices omy
decisively to the Treasury Department, whether it does or
and thai; firms
may sell at less
riot, is that actual receipts from such taxes accrue to the
than these levels.
of, the relatively small class of taxpayers. Yet even he has
Government almost immediately after enactment.
There stated that retail sales
These
are
the
first
agree¬
taxes may have in time to be con¬
ments of this kind negotiated
is no other sort of taxation, calculated to produce any com¬
sidered and, as recently as last Monday, in a radio talk, he
by Mr. Henderson under the
parable volume of revenue, which so speedily and with such declared that the incomes of
power granted him in section 5
wage-earners, farmers, and
undeviating regularity contributes to the public "exchequer. business men had all been
of the Emergency Price Control
recently and materially increased
In summary, this tax is easily, cheaply, and speedily col¬
Act of 1942.
This section per¬
by the war-expenditures.
The majority in the Committee
mits the Administrator to ne¬
lectible, it is not likely to be continued to produce extra¬
on
Ways and Means, probably a majority of the Democrats
gotiate agreements for the sta¬
vagance after the necessity for its enactment has passed in
bilization
of
Congress, and Aearly all the Republicans in Congress,
prices
directly
away, it is a natural brake upon inflation, and its strong believe that the time for
with manufacturers.
favorable consideration and enact¬
This method is
tendency is to promote tax-consciousness where the in¬ ment of a retail sales tax has
reported to
actually arrived. Nothing but
have been especially useful in
fluence of awareness of the burdens of Federal expenditures
strong opposition from Mr. Roosevelt and his Cabinet now
the case of waterproof rubber
has been most dangerously lacking and where such com¬
stands at all in the way of such enactment and if that
footwear, as manufacturers had
prehension is most greatly needed at this precise moment
never
before
produced
items
opposition is not withdrawn it is not unlikely that' the con¬
of time,
••v77
7
■
''''':, ' .'.7
exactly comparable to the new
sequences will be a sweeping and humiliating defeat of the
"Victory Line" of boots, arctics
It is natural that a President who has, throughout his Administration.
Even now, such opposition and interfer¬
and rubbers.
whole political existence, found his chief support among ence from the Executive
Department is producing wide dis¬
those who vote expenditures while supposing, themselves satisfaction and revolt
among Senators and Representatives Helfferich Elected President
to be immune from their payment, should recoil at any sug¬
who have customarily supported the President and the New
Delaware Co. Bankers
gestion which in practice would .make these supporters Deal." Dissatisfaction and revolt in this case are fully war¬
Donald
L.
Helfferich,
Exec¬
aware
of the financial burdens brought about under'his
ranted and will not diminish.! The retail sales tax, accord¬ utive Vice-President of the
Upper
leadership and conscious participants in bearing those bur¬ ing to Mr. Randolph Paul, tax adviser to
Secretary Morgen- Darby National Bank, Upper
dens. Before Mr. Roosevelt; no President ever derived sub¬
thau, would, at 5c/ot produce $3,780,0.00,000 in the first year, Darby, Pa., was elected President
of the Delaware County Bankers
stantially the totality of his support from those who pay that is to say, one half of the whole increase in revenue which
Association at its annual meeting
no direct taxes, and he has even improved upon that polit¬
the President demands.. It ought to be adopted, at not less on Mar. 11. Mr. Helfferich
is also
.

,

■

ical advantage

by causing the

diversion to its own

Which he has had

by,

or

same group

to

support

pockets and benefit of immense

the than that rate, and its ultiniate enactment, in consequence

sums

of the

regularly subtracted from the taxes paid pated.

the proceeds of obligations incurred upon the credit




current

discussion

and

the Administrative Vice-President

of

Ursinus

necessities, is to be antici¬ Pa, and

Yet those who recognize the need,

overlook the

•

ought not to

requirements of vigilance and attention.

-

40-hour

July,

The current average, wmcn

topped

than

weeks,

record

Washington

trying

were

anti-mtiationary

reconsidered

of

from

tne

moves.

demands for 'immediate- en¬
actment of anti-iabor legislation

Major engineering construction
February reached $t>34,823,uuu,
and
averaged
$158,706,000
for
each

restrain

latest

pease

200 tons.' v

oniy

of

attituae

Administration

of

in

to

its

in

advices

that

state

in

failure

tne

farm

previous
were

last

,

is

the Administration towards labor

an-

wee*

1

more

period

increasingly evident that
country, is becoming aroused.

ment

new

similar

the continued mila

the United
a

in

year.

"preceumg

i,ooa,00o ton output, hast

tne

marks,

that

tne

war

successive

tinra

facilities

total

.

correspond¬

esiaonsn

Moreover, informants who took News-Record,

note

tne

announces,

uled

both

of

tne

American lion

the
tute

rao,-

penou

126.60% of

production

toe

tor

and

same

bieel production in
ume

corre-

.

was

of

me

','777.7 ,7

years.

States

weeK,

national

tne

loadings tor

ing

of

from

cars

in io41

aoove

This total

tne

the

If it

aui

into

hand, it is pointed

10,<22

man

weex

two

cating a

armed services.

more

sponcung

the withdrawal of consumers

out that

as

cars

and

On the other

Tms

recently.

they averaged 23%

than

preceumg weeK tins year, 2a,-

uau
•

non¬

operators

areas

puonc

age

because

problems.

tribution,

curtails

4

not

of American Kanroads

c*nd maae

tne

In; the food industry, for exam¬
ple, producers of specialty foods

upon any individual, is at least as much within
the control of his separate will as the decision whether he
will buy a loaf of bread or a 5- or 25-cent cigar or any other
as

is

experience

Afesociauon

was a decrease oi

essential items.

impinging

determination

month's

excise ington, who

voluntarily assumed, the weight of which,

to

Corporation.

conclusive, an upward trend is
indicated because of
growing lim¬

value to him that warrants the whole expen¬

In other words, it is

^ according

Bradstreet

fifty firms' out of every 10,0U0 m
business became insolvent. Wnile

longest conceivable lines of communica¬
tion to be kept open as vital necessities, are in no sense
ordinary. The people of the United States have accepted
this fact with all its manifold implications and have un¬
grudgingly bowed their backs to accept the immeasurable
burdens which it implies.
Taxation is among them and
burdens of taxation that in happier times must have seemed
intolerable will now be accepted without reluctance and
borne without murmurings or complaint. Its very unpopu-,
larity in better times is sound reason for resorting now to
the taxation of sales in retail trade, which ought also to
include such personal services as those of the dentist and
doctor, the garage-man, the barber, and the beauty-parlor.
Popular sentiment will know when the necessity for such
taxation has ceased to exist and the overwhelming popular
will can be relied upon to obtain its repeal before it pro¬
duces the effect, common to a surplus, in the revenues,
which has usually been the fecund source of new extrava¬
gances and the continuance and enhancement of old ones.
No one pays a retail sales tax except after decision that the
commodity in connection with the purchase of which it
accrues

business,

&

Last month the rate of industrial
and commercial failures
rose, ana

fronts and with the

diture, including the tax.

in

cerns

the retail sales tax is widespread and natural. But
the; con¬
ditions of total warfare, chiefly conducted as it now is on

no,b9Y cars, according to reports
iilea by tne railroaus wim tut

con¬

March 7,

officer

College,

serves

in

several

companies and

dising

as

company.

a

a

Collegeville,
director and

manufacturing
retail merchan¬

-

THE

1148

COMMERCIAL & FINANCIAL CHRONICLE

Thursday, March 19,. 1942

favored registration of virtually every one in the natiqn

Urges Allocating 50% Of I
managing the then defense effort, and appar¬ Cotton Textile Production
(Continued Ffom First Page)
ently the lives of some 130,000,000 people. The, idea has
For Preferred Contracts
1
must win this war. Therefore I will work; I will save; I
apparently never been abandoned. The President rarely
Immediate steps to make pos¬
will sacrifice; I will endure; I will fight cheerfully and to abandons an idea.
Recently there have been many reports sible the allocation of at least
50%
my' utmost, as if the issue of the whole struggle depended and several "trial balloons" concerning such a scheme. of cloth production to
contracts
on me alone."
It has been picked up, published, and re¬
Many in places of influence have repeatedly expressed the bearing an approved preference
published by others who, like so many, seem almost to die view that labor, capital and everything and everybody else rating will be urged upon cotton
textile mills by merchants
repre¬
daily lest the rank and file of the people of this country in the country should be "drafted" for such service, military
senting them in Worth Street,
do not take this war seriously enough. " '. /■,/ /
or
r: '
otherwise, as the Government thought they could best New York City, the nation's

THE FINANCIAL SITUATION

with

a

view to

;

pri¬

To be sure,

the sentiment expressed in these sentences

give. The idea thus vaguely and easily expressed has appar¬
many—those in the fighting forces, ently appealed to many unthinking persons. It is so easy
those at work in this vast arsenal we are endeavoring to to say that since the young men of the country are being
build, and others—for whom they form in one degree or "drafted" to do the fighting, all others and their property
another a fitting rule of conduct. At the same time there ought to be treated similarly—and to many who do not
are a great many who had best continue about their ac¬
stop to think, it sounds "just" and "fair."/
;
customed work, saving as best they may, sacrificing when
Not For Us
sacrifice is indicated, remaining as cheerful as may be, but
The fullest and
perhaps the most cogent exposition of
hot cherishing the idea of making any important direct con¬
this general idea to come to our notice
appeared in the
tribution to the war effort,.and certainly not working them¬
London "Times"* on
Tuesday, last, front the pen of Sir Wil¬
selves up to the pitch of emotion here suggested.' Many,• if
liam Beveridge, an economist of considerable standing and
not most, of the evils that have so beset the CCD had their
influence in Great Britain. This deliverance will, we feel
origin in the strange idea of some duty-bound universality
have~ important reverberations in Washington.
of direct service. One of the most useful services many of certain,
From it we take the
following excerpts as they appeared on
us can render is to mind our own business and keep out of
Tuesday in a special dispatch to the New York "Times": ' >
the way.
Certainly we need no martyr psychology. '•
is admirable.

There

are

..

cording to
members

It appears

at times that there are a good many who
foolishly suppose that the people of this country have devel¬
oped or can be persuaded to develop a great yearning for
martyrdom. This we doubt, but even if it were true satis¬
faction of it by some of the means now being proposed
would not help win the war but, on the contrary, hinder
its successful prosecution. The Secretary of the Treasury
appears to be one of the leaders in this school for American
martyrdom. Once upon a time, it was supposed to require
considerable political courage to come forward with a crush¬
ing tax program; now Mr. lVforgenthau appears quite certain
that the larger the tax demands made, the more popular
will be their reception. We are quite ready to leave the
political aspects of the subject to others, but candor and
the true interest of the country demand a warning here
that there is such a thing as over-taxation even in war time.
Certainly, taxes upon a minority of the people can reach
a
point where they can do great harm even to the cause in
whose name they are invoked. The Treasury's proposals
appear definitely to fall into that category. The National
Association of Manufacturers, usually clear-headed
and
sound in its ideas concerning public questions, has come
forward with suggestions of its own. It is not clear in what
degree it conceives of its program as replacing that of the
Secretary of the Treasury and in what degree it would sup¬
plement the Treasury's, but the Association certainly
appears to have little fear that American business may be
seriously and permanently crippled by over-taxation. Let
it not be forgotten that not only the defense industries as
such but many other branches of American business must
continue to operate in very substantial measure if we are
to see this war through to a successful conclusion and not
find ourselves an econoniic wreck when the fighting has

stopped.

.r?

A number of other

:

•

11.

.

in

them Leon

business in

For

a

ought to be "drafted" and put to work by

all-wise, far-seeing,

many

and all-efficient Government.

a

managed

emergency.

economy,

made all embracing in this

It will be recalled that long




<f

.u

ago

new

Association of

stated

was

also

that this

After thorough • consideration

Activities

this

association

that

Committee

of

recommends

members

our

the

encourage

participation of each mill

at least to the extent that 50%
of its entire

cated

production be allo¬

contracts that bear

to

an

approved preference rating.
Consolidated requirements al¬
ready issued on cotton; duck,
drills, sheets, comforters and
blankets, are generally far in

war.

of 1941

excess

farmers'

ilar

purchases.

Sim¬

procurement programs for

other

fabrics

and

undoubtedly in
aration.

To

articles

course

fulfill

are

of prep¬

these

de¬

mands," in

the opinion of the
Committee, will require the ut¬
most ingenuity of the industry
and a major job of plant con¬

on the direct employ¬
taking responsibility for insuring

without

fair distribution of income.

This-

version.

will

condition

become general until each
unit assumes individual respon¬

not

The main evil of this economic

policy is not the bogey of inflation, nor is it that a few
sibility for the success of the
war
program.
Until everyone
people may make large profits or large wages; it is the
is doing his part, there can be
evils that lie partly in the indefensible and dangerous in¬
no
real
satisfaction over our
equalities that have resulted between civilians and mem¬
effort.
bers of the fighting forces and between different civilians
W. Ray Bell, President of the
and businesses; partly in the fact that bribery by price or Association of Cotton Textile Mer¬
chants, who signed the statement
wage is often an ineffective spur to output.
the

for

"The time calls for two

changes — first, for the State
responsibility for the control of vital indus¬
tries and for the distribution of income; second, for the
assertion of the principle that service rather than personal
gain should be the mainspring for the war effort in industry
as in
fighting. To say that wage and price bargains are out
of place in the war is not to criticize the actions or deny the
value of associations of work people and employers.

to take direct

"Trade

unions

an

are

essential

element

in

British

tee,
of

the

British

tional ends

—

he

"has been taken in an
anticipate adjustments
feel may be inevitable."
Mr, Bell also said in part:
Although the industry has
to

which

we

continued

1942 production to exceed the
high record set in 1941, only
through prompt and systematic
replanning of the use of all our
production facilities shall we
succeed
in meeting the new
demands which are being and

will be made upon us.

is not to say

Experience has shown that
priorities limited to actual pro¬

exceptional effort should never receive a special re¬
ward; exceptional effort—to put it no higher—needs excep¬
private gain as a dominant motive in the war effort
our people; the British work people are not by
nature profiteers and can be made to act as profiteers in
the war only by mismanagement or misleading.

welfare—articles

serve

its affairs. Choice of

its purposes is

a

one

country is by

no means

tial truth has been hard for

the President

(Continued
^

4

v

.i

F-J

'

i:|

(

:

>•'.

some
on

of

us

to

fh

$

t

'

lit:

coarse

cotton fab-,

We

India.

use

around

900,000,000
yards
of
burlap
yearly—but demand for sand¬
bags,
camouflage
nets,
and.
other war uses might expand

system

requirements beyond any.
eistimates.
Current
stocks are being held for such
uses, but expanded needs would

our

present

:

1

necessarily the

cause

additional

strain

on

the

production facilities of the cot¬
ton
textile
industry,
whichwould be called upon to supply.
substitute fabrics.

essen¬

learn, but it is

Page 1150)

bags for

to

from

obviously its responsi¬

system that will give the best results in another. This

\

spur

It has long been clear that the system which gives

bility.

like

replace actual and im¬
pending shortages of jute and
burlap,
which
are
imported

is, of course, not for us to undertake to tell Great

which will best

for

demand
rics

idea, not hope of personal gain."

Britain how best to manage

Army

agricultural
products,
work
clothing for war industries, etc.
We are also facing abnormal

factories improved

country; it means that in war the most effective

own

the

textiles essential to the national

suddenly when Russia came into the war, this does not
mean the workers
are stupid, preferring Russia to their
to heroic efforts is an

of

Navy make necessary some
readjustments
in
distribution
through civilian channels of

is to slander

our

needs

curement

and

But to

treat

output of

produce at new
month, and
reason to expect,

each

there is every

that

"If it is true that the

to

levels

record

again that service rather than gain should be

tional sustenance and freedom from economic care.

"The present action
Committee,"

said,

effort

war and for the war only, our trade unions should
become,
after the Russian model, conscious agents of national policy?

war

Production Board in

of the War Activities

model, associations organized from above to serve the pur¬
poses of the State.
But is it too much to suggest that, in the

"To say

be guided

by the necessities

more

War

Washington.

rather than trade unions after the Russian

the main motive for all men's acts in the

and

Commit¬

distribution^

that

textiles will

cotton
the

of

Activities

War

predicted

more

peace I at least want trade unions after
model—autonomous associations pursuing sec¬

In best
results in

instances, this is but a natural extension of the obses¬

sion of

a

men

The

War

"Meanwhile, the State has set out
ment of all

It

long time, too, there has been hovering in the

and the waters

some

of

pansion of fabric requirements
by the Army, Navy and other
Government procurement agen¬
cies,
the lend-lease program
and essential civilian uses, the

spokesmen to talk as
if putting their utmost effort to use our land depended upon
the terms of a price.bargain. We have generally, against
the advice of economists, treated our work people as if
they were 'economic men' not amenable even in war to
any stronger motive than personal gain.

particular.

background the notion that everything except the winds
an

"We have allowed

ac¬

of the current and potential ex¬

but the interests of shareholders and what

position of their business after the

It

V

democracy, and for

'•

public life, notable among
Henderson, appear to deserve a place by the
side of the Secretary of the Treasury as apostles of martyr¬
dom.
How often do we hear it said that in this country or
that country the people have been obliged to do without
in a measure far exceeding anything as yet attained in this
country—as if doing without was of itself a virtue likely to
contribute to the cause? But* whatever the general rationale,
if any, underlying many of the actions now taken in the
name of
victory, the fact remains that unnecessary disrup¬
tion of normal business is of no advantage to any one. In¬
deed it merely serves to weaken the nation both at present
and in the future. It would, of course, be difficult for the
ordinary man to be certain in each instance whether given
steps are really necessary, at least in the drastic degree to
which they go, but it is equally difficult for the thoughtful
man to bring himself to believe that the government at
Washington is not permitting vague ideas about the virtue
of sacrifice, the long existing dislike of business in any
event, and other foolish notions to lead it into extremes in
its dealing with the civil population in general and with
men

war

would be the

market,

statement issued to

step has been taken in advance of
present
requirements
in
order
that the industry may be pre¬
pared to meet possible future ex¬
pansion of war needs.
Text of
the statement follows:.
/

rely upon individual capitalism
with its accompanying
machinery of wage bargaining, even
though the excess-profits tax and other financial relations
between the State and business managers have deprived
both private capitalism and wage bargaining of their logical
bases. We have left vital production in the hands of individ¬
uals whose duty it was to consider not solely the needs of
the nation at

textile

a

Cotton Textile Merchants by their
War Activities Committee on Mar.

"We have continued to

Apostles of Martyrdom

cotton

mary

•

,

'tit V

(

.

y

-

j

i

>

l

•

\

J

;

•-

-

-

•' 4

Volume 155

Number 4056

THE COMMERCIAL & FINANCIAL
CHRONICLE

/.continues \o widen. -Price. con-;
trols rhay' be • supplemented
by

Inflation And Price Control Discussed By
N» Y. Reserve Bank In Annual Report

1

cumstances

of

ger,

created, for the first time since the
began in 1939, a definite threat of inflationary developments,"
Allan Sproul, President of the Federal Reserve Bank of New York,
in the annual report of the bank for the
year ended Dec. 31, 1941,
declares that "our main hope of<^
tirely. Furthermore, a substanavoiding inflationary develop¬
ments which will obstruct the war V tial volume of bank loans may
/
be
required
to
finance
war
program1'and plague
us
in the
war

ently

not

been

eradicated,; in
where

the

Europe

most

period, lies in coordina¬
help
gap

between

and

:

Furthermore,

available

supplies of, con¬
Mr. Sproul goes on

ened,
a

'

/' require

restraint

the

upon

policy of

a

'

comes

are

tending

to

re¬

credit

*

expansion

/ The

that

j
'

tends

to

accentuate

the

extent,

by

some

does/ not

-restrict

'

v

to

the

financing

which

of

severely

the

the

-

Treas-

does carry with it,
other "difficulties > and

ury must borrow should be ob-

tained as largely as possible
fromnonbank sources. At best,
however,
bank
purchases • of

.

.

-Treasury
scale

securities
to

appear

during the

on

be

which

etary
of the

■

fiscal

past

Discussing

•.

year

circmstances,

bank

are

the /

•

accom¬

large that,

panying, indications of a tendency
toward price rises the report ob¬
that

serves

"it" would

be

added

con¬

in

now

if it

even

were

in

to

not

//".

existing
as

there is

income

consumer

come.

for
of

it

one

In

and
as

yet

main

emphasis

still

on
general expansion,
departed from "business

we

usual" only to a limited

and

Under

in

the

special

de-

situations.

stimulus

of

the

de-

-

*

tionary tendencies without inter¬

,

•

fering with the
the

effort

war

development,7 of.,

or

with

maximum

adopted

*

fiscal

;

without

reference

-

-

cuted/ without

reference

to

•

policies. And price control and rationing policies must

depend heavily

,

upon

both credit

limitations.

and fiscal policies.
There is
need,'therefore,, in the consid-

y
.

/

eration of the

/ comes

interrelationships
,

of

to

all. other

types of policy actions, ;.•> /

/Leading
the

this

to

up

are

exert

/ence

"

conclusion

has the following to
coordination
of
credit

report

say

on

policy

with

.

*

*

at

be

considered

restraint

a

on

credit.

<

Under

war

with

action

to

a

dilemma.

check

sion,

bv

bank

,

-

-

*

is

avoid

reliance

stantial

amounts

to

little

the

reauired to finance the

funds

war

fort,

and

pansion

hence that credit
can

be

avoided




17%

1940

over

precisely

the

first

the

was

half

a

of

the

year

tremendous

wave

which

to

increased

and

partly

was

due

consumer

to

partly

incomes

anticipations

of

curtailment

For the

year

of

a

as

of output..
whole sales

able

consumer

22%

over

goods

1940

15%.

goods

dur¬

were

up

and nondurable

-

The report
rise of

points out that "the
prices apparently account¬

ed for about one-third of the

seem

pansion

1941

and

crease

of- national

nearly

half

income

of

the

ex¬

in

in¬

in retail sales." It adds that

upon price
"predominant in the advance of
applied wholesale prices was the rise in
limited groups of prices may
prices of food and;; other farm
retard, but can hardly stop, the
products."
Continuing, it says:
rise in prices
generally in a war
v
These rose 23% and 36%, re¬
period. On the.other hand, an
spectively, in 194L to levels
attempt to apply price ceilings
35% and 55% above those of
;

ices

-

dous

would

involve

problem

of!1

and
a

serv-

/especially if the

enforcement,

gap

between

consumer

ex¬
-

supplies

*

purchasing
of

power and

consumers'

• ••

goods

his

or

super¬

little

as

most

his

of

of

business

be

may

to¬

energy

foreign-owned

which

or

con¬

enterprises
continued " in

•

"

■

•The account in the "Wall Street

/

Journal" also states that the order

/
'

says:

After

J

/.

-

„

reaching

/

•

high
level of
$1,280,737,000 on April
22, 1941, the total of foreign
deposits with this bank fell; to

$771,625,000

at

a

the

new

end

of

under

which Mr. Crowley serves
specifically delegates to the new
Property Custodian the au¬
thority of the President or his

Alien

appointed

used,
sold, or

the interest of and for the benefitw
of the United States."
From the

$397,380,000 at the close
held

foreign

under

-

the

accounts

.

/r rose

year,

000

control
;

for

fairly

steadily and attained
high record at the end

a

$2,215,351,Dec. 31j 1941, compared
$1,807,673,000 a year pre¬

1941

bank

$

$1,163,004,000 at the

close of 1939/
was

.1

'

change during

no

other

Banks'
such

Federal

accounts;

balances

proximately
mercial

No com¬
denominated
in

currencies

have

had

made

to

of

1940 and which

amount

an

of

year

$947,000,

with

The Treasury, for ex¬
already has suspended
members
of
Schering Corp.'s
staff
and
was
planning as a
second step to take over stock

in

the

central

same

bank—was

made in 1941, and this loan
repaid before the close of
year.,/'7;7-.:;vZZ'7Z;;'

President

ting

Roosevelt

order

within

up

the

set¬

Office

for

Federal

Deposit Insurance Corp.,

retain

new

capacity will

that

compensation;
Prior
order

had

to

the

post

serve

in

his

without

the

issuance

over

$7,000,000,000

of

of

the

Department

the

estimated

alien

assets

which the Government has frozen
under - the
Trading
With
the

Enemy Act.
At

a

Mar.

joint

12,

conference

on

Secretary Morgenthau
Crowley explained that

and

Mr.

the

transfer

gradual;

press

of

will

control

Mr.- Crowley

be

said- that

he planned to work
primarily on
alien
business

enterprises
and
that control of foreign funds will
remain

under

partment.
that

?

It

the
was

Treasury

De¬

further

said

general and special

which

have

,

dustrial

licenses

been

been'-assumed, that- the

Treasury would continue to/ com

materials, contrib*- trol these assets since Secretary
higher 'costs of produc- Morgenthau recently "made pubraw

Mr.

that

Bank

the

of

San

;

cific Coast.

area, would continue to admin¬
ister alien properties on the PaMr., Crowley indi-,

cated there would be

decision

a

shortly regarding Japanese farm
lands there.

OPA Puts P*ice
4

Ceiling / /
Tires, Tubes

On Used

Price Administrator Leon Henr
established on March 10

derson

maximum

tubes,

price ceilings for used

to

.

become

March 16.
it

is

plaints

effective

The action

stated

as

by

of

the

on

taken,

was

result

a

received

com¬

OPA

of

"price gouging." Using prices exr
isting between Oct. 1 and 15 as a
guide for establishing the ceiling

prices, the OPA divided used tires
into four categories according to
the

tread

based

on

wear

the

and

size

fixed

prices

and

condition.
With respect to maximum prices
for tubes, the OPA set a

ceiling of
$1.50 for all sizes of passenger car
tubes and of $2 to $14 for truck

tubes, depending
Mr. Henderson
was

on

size.

said .the

able prices-in "the only

to

ceiling

intended to maintain xeason-r

not"

uted to

Reserve

and

Francisco, in cooperation with
the military authorities of that

creased urban living costs and,
in so far as it related to in¬

had

'

said:

t

market

It

New

passenger car and truck tires and

' v

-

Treasury

control

and

the

Washington

Morgenthau
Crowley
explained

an

11

Emergency Management the Office
of Alien
Property Custodian, with
Leo T. Crowley as head.
Mr.
Crowley, who is Chairman of the
will

12

to

from

Mr.

Federal

issued

Mar.

on

"Tihies"

Mar.

the

of" these

.

York

was

Crowley Named Alien
Property Custodian

corporation."};•/>/'

Special/ advices'

-

executive

.

controlfbf the

fully repaid early in 1941.
one

sympathy for the Axis

or

ample,

were

Only
small loan—of
$200,000 to

"Americaniz¬

on

companies,
which
principally getting rid

key personnel who are sus¬
of 'having connections

powers.

a

outstand¬

were

work

pected

Latin-American central bank in

ing at the end of that

beforehand

those

means

been

October, 1939

been

management

ing"

loans, secured
by gold earmarked at this
bank,

which

Crowley. ,/It is understood Mr.
Crowley was consulted regard¬
ing the selection of the com¬

current

ap¬

$46,700.

held abroad since
The short term

management of Gen¬

that he has no plans for
changing it.
It is expected he will allow
the
Treasury to continue its

of

remained at

bills

foreign

total

&

in

and

Reserve

the

new

pany

in the balances which this
holds abroad for its own

and

Aniline

Aniline, which was an¬
nounced by the Treasury Tues¬
day night, will not be disturbed
by the transfer of duties to Mr.

amounting to

vious. and

General

eral

the

on

with

of

Film
Corp. of Delaware,
Secretary Morgenthau.

///•; The

new

.

of

the

Treasury recently obtained and
which gave it authority to vest

of 1939.

earmark

advices we quote: ./
That is the power which

same

year, compared with $1,130,945,000
at the- close of 1940
and

'Gold

to
prescribe
shall be "held,
administered, liquidated,
otherwise dealt with in
agency

that alien property

issued by the
The rise in prices
products
constituted Treasury for the control of for¬
the most important cause of in¬ eign funds will continue in effect.

August, 1939.

tremen-

•

efen¬

/

-.

-

~

almost

sumers,

expendi¬

not

to all types of goods

the comprovide sub-

of

does

are

-

upon

banks

it

1941

,

of durable goods buying by con¬

as

Similarly,

in

control.■; Price/controls

prospect that the Treasury can
mercial

*

:

•

of

matching

there

period.
policies and

war

sales

$53,600,000,000, the

increase

In

goods the

war

Retail

•7 percentage increase in national
income payments to individuals.

flationary tendencies
to

nancing which must be done by
There

of

feasible in this country to
place
sole reliance for restraint on in-

absorbing 'all surplus
and
forcing
the

funds

Treasury.

the

groups, even after profore taxes, may continue

prices of consumers'

//;.

currency, would almost inevit¬
ably interfere with the war fithe

at

income

same

Strong

banks to borrow from the Re-

t

net

extent that they draw
upon the
sources of funds.

are

serve
Banks to meet further
demands on them for credit or

/

while

the

tures.

7 estimated at

with

compete

ingly
apparent
that - civilian
production
a nd 7 consumption

''

serv¬

largely as possible out
savings, must be considered
together, as they will necessar¬
ily overlap and conflict to the

are

;.

"

effort,

time

not

under

operation.

larger it became increas¬

were beginning to compete dan¬
gerously with military expendi-

of

condi-

[

«

war

tures

of

credit1 expan-

Z

supplies of: which must be lim¬

strong policy

expansion

/ came

to rise and may continue to ex¬
ert an inflationary influence on

*

*-

the

..same,

vision

appro-

tions, however, those who
responsible for credit policy

•faced

f

do

efforts to finance

"bank

;

that

it

priate to adopt

,

ices

ited-during the
Furthermore, tax

of

;

industries and

panying indications of a tendency toward a rise in prices,
would

in¬

relatively fixed /as
deflationary influ-

-

upon

other

fiscal

policy
and
other Government policies:
Ordinarily in a period of rap¬
idly expanding business, espec¬
ially when there are accom;

and

increase ! in taxes,
example; may so reduce the
/ income of groups
whose
in-

*

and-ramifications

drastic

discriminate

of any particular line
policy, for adequate consid-

of

A

A for

eration

.

,

prices, there is little hope
that prices and costs in
general

"

credit

/

trolled

devote

in

'

policies.? Fiscal policies
be > satisfactorily
exe¬

cannot
*

,

to

f

property as he desires.
It
thought likely that he will

is

•

production." The report states:/::
V /
Credit r policies J cannot
be

the

added:

much

as

munity

.::.

'

,

restraining:infla¬

advices

take

can

vision

ward

There
'/*.:■-/$. /:://.//; 'v//
'/•'//■>

1941/the

C.gree

and

is

the- available supplies of con- / fense
expenditures/ which rose
/sumers' goods,; there is likely,
/ from about $600,000,000 in Jan/ to be inflationary pressure
upon
uary to three times that amount
prices.
«
in December, the national in¬
The
gap
between consumer
come paid out increased to the
income
and
supplies of corirecord-breaking total of $89,sumers'
goods/ is beyond the
000,000,000, compared with $76,/ v reach/' of
credit policy
but is
000,000,000 in 1940, $71,000,000,•/
particularly within the range of
000 in 1939, and $82,000,000,000
fiscal policy. That is to say, the
in
1929.
The
expansion was
/ gap may be narrowed by taxaVery
broad,
embracing
both
/ tion or by the • stimulation > of -'durable and"nondurable
goods;
savings and their ^ diversion to -/for both
military and civilian
/•'. Government;/ financing. - :How/uses. But as the/year went on
-ever; fiscal -policy also has its
and the defense program be-

may.

to

authority to control
property is selective, i.e.,.

gram, and both greatly affect
the cost of living of the com¬

.

> •-.,/.;./.;v///-."f

esr

was

supply. .So long
material disparity

a

event,

termination

//.rZ'// /////:'
...

-

money

between

}

•

of the

use

some

far/; happened/and what

so

by further extensions

moted by more active

pansion of credit" and in pointing
out that "it appears that there; is
great need for coordination of all
effective

is

credit, inflationary develop¬
ments in prices might be pro¬

appropriate to adopt" a
strong policy of restraint on ex¬

be

to

of

currency

begin this
reference/ to

.phase of our experience as well
.//as the beginning of another and
./establishes the plane of com¬
parison, between what/has thus

of

sidered

types of possible action that

deposits and

United/States

the

afterwards.

best to

,

inflationary tendencies is not
volume

marks

;

qualita¬

or

feasible./ The- total

•

rapidly/ expanding

-

quantitative

1942/and

seems

/ that: momentous

on

tive credit controls for restraint
6 of

developments
are significant.

business where there

sole' reliance

in

;' review/with,

case; 'under<[present

any

either

/

/fects

,/Yet it

study/ -/4

,

Our entry into the'World War
last December will have its ef-

/,

however,
dangers

its extension

matter-of careful
In

war

and

/

inevitable

period., In view
of these considerations the mon-

0

a

large

a

must make

/

advices

considerable extent, Mr.

a

alien

war pro¬

tural

the

It

,

J

Crowley's
he

which

over-all / lending //The /report/ which was issued
/;■ power of the banks, and there¬ on March 12, observes that "the
war.1 Much more drastic taxamost important event of 1941 lies
create
tion than we have thus far ex- of ore-? does-not
money
market conditions which inter¬ mainly beyond the scope of this
perienced will be required, and
fere with -necessary / financing. report."/It continues:
//-/••"
".
the amounts

*

*

ducers

^problem," to

control of consumer instal¬

of/control
-

diture

The

To

the

//keeping production below the
can be controlled and
inflation
credit:/previously
com//maximum, unless special measprevented.
upon is an illustration
// / ,-■•/,/'//■:/•
of this- type of credit control, / ures for compensating high cost
Reference to the bank's
foreign
/ producers can be devised and
The qualitative or selective type
relations is made in the
report,
//made effective."

•

5,

Street

tion.

cost

mented

■

the

community's infrom consumption expen-

come

i

:

r-

—

Journal," Mar. 12,
from its Washington
bureau, not
all of the Treasury's powers over
foreign assets necessarily are lost
due to yesterday's executive ac¬

production,

ment-

would
■

comes,
much of

of

men¬

Mar.

:

credit.

over

problem

was

of

*

is the use of qualitative

-

or-selective controls

increase

unnecessarily to inand
the
transferof

<

banks)

"Wall

strong pressure for a
the other/ both exert a
powerful influence upon cost of

the

As

issue

our

...

.

contribute

i

curtail the lending power of the

>

pre¬

in

According: to

of

general.
Unless
an
anti-inflationary program, :/ means can be found to prevent
-/to obtain maximum
an
production,
indiscriminate rise in indusyet the fixing of price ceilings
trial wage costs: and
agricul-at levels which do not
tural prices, as well as in busi¬
permit
/.'operations ; by high cost proness
profits
and
nonagricul-

and thus to

/

the

in¬

cost

of /. rise in

including
special I to Government of the

requiring

meet

the

delegating,, such

,

him.

945.)'

page

creates

re¬

imposition

high cost producer. It is
clearly desirable as one part of

/

(measures designed to abreserves

to

industry

than

more

order

to

tioned

spiral developing between these
two important elements of the
>
price level.
A rise in either

/the

economy.

sorb bank

•

action

/

of

was

/the

powers

living. Strikes, many over wage
rates, were unusually prevalent.
One of our chief inflationary
danger^ is that of a vicious

:i

inflation also involves the

difficulty

threat-

is

-

trol

disproportionately, avoidance of

*

A

inflation

the

upon

arbitrary price ceilings to
vent

possible
alternative' to
quantitative measures of con¬

muneration of groups whose in-

►

:

hardly be adopted in

can

war

/'/

'

Apart from controls over pro¬
duction, prices, and the distribution of scarce goods, this will

;

when

time

■

the

sumers' goods.
to say:
•

lying

,
•

incomes

consumer

of

.

>

price inthe advance

'

efforts

police the distribution
goods have been made

Consequently, the
sort of credit poiicy that would
normally be appropriate at a

f

creased

even

drastic

.

lie

Another

j

and

earnings in

wage

entirely

to

contracts./

creasing factor

there is great dan¬

have

'goods,;

.

cost

in wage "rates.' Average hourly

the

development
of
"black markets," which
appar¬

ber of kinds of consumers'
goods,

postwar

important

priorities, allocations, .or ration-: /
1
ing -of. the -available supplies of s
goods, but even under such cir¬

Indicating that "the rapid expansion of consumer expenditures,
.together with the prospect of curtailment of the production of a num¬

tion of all policies which can
to limit costs and close the

ing/ finished

,

-

-

1149

the

for

tires

and

remaining

tubes

ordinary citizen who

satisfy

rationing

retreaded tires."

canr

regulation

requirements for purchase of
or

open

new

Thursday, March 19, 1942

THE COMMERCIAL & FINANCIAL CHRONICLE

1150

featuring

Pre, Con Fed; Sales Tax-Morgenthau Opposes

THE FINANCIAL SITUATION
7

/

(Continued from Page 1148)

.

truth nonetheless.

Each country

has its

predelections, its own national habits, and each entered
this present conflict with its own economic and social sys¬
tem which differed, often drastically, from that of other
countries.
What we do feel quite certain of is that Sir Wil¬
liam's plan, far from aiding or stimulating the war effort in
this country, would very seriously, perhaps disastrously,
impede it. That is, if we are to win the war within, say,
the next five years. It is conceivable (although even then
we should be rather more than skeptical)
that if the con¬
duct of "tot^l war" in all parts of the world is to be fore¬
seen as our all-absorbing pre-occupation for the next quar¬
ter of a century, and if we could afford to devote the next
two or three, perhaps four or five years to reorganizing and
remaking our economic and social systems rather than to
full production and the most efficient conduct- of the war,
at least on its economic side, we. should in the end profit

mittee

Following the submission by Secretary Morgenthau to the House
Ways and Means Committee on Mar. 3 of the Treasury's "tax pro¬
gram, to raise

$7,610,000,000 in new revenue, Mr. Morgenthau again

9, when he voiced his oppo¬
proposals of members of Congress seeking to lower personal
exemptions or favoring'the enactment of. a-general sales tax.
Extended reference was made in<§>appeared before the committee on' Mar.
sition to

columns

these

(page 952)

5

of

recommendations

the- tax

to

Mar.

Secretary Morgenthau; in propos¬

that the individual income
be changed to yield approxi¬

ing
tax

exemptions,"which

long before we should be able at best to effect
the changes indicated and get the new arrangements to func¬
tioning smoothly and effectively, even if we assume, which
we cannot assume safely, that it would be possible at once
to command the full support of all the people and the best

married

management that the country could afford/*

of Commerce"

from its Washing¬

ton bureau

that date said:.

of

income

$750

person

vices

and

person,

the

to

on

"Journal

York

New

As the Ways and Means

received

mittee

is well

understood, of

course,

that

a

'

democracy in

Com¬

*

.the

Vsnift

times, of large scale war, which would never

is

our

conviction, and

it

supposed to be fighting to protect. That is important
enough, but here we have to do 'with ideas and schemes
which could cause us to lose the war. Plainly the Govern¬
are

threat

of

income

>

.tion

•

to-

earning $750

/

earth would it do with another two
and

women

directed
directed

or

who would be essential if

from-

Washington,

from Moscow?

three million

everything

as

men

everything is to be

in

Russia

A
with no depend¬

married person
ents earning $1,500

7

taxes,

From the "Wall Street Journal"

done

or

Mr.

is

he

.So"much

for

.'which would have
a

- —
these

It is

a

••

'

little difficult,

our




in excise levies

on

;

afford

to

he said.

;

"

they

He

pay

in

meat

•

-

does not hold

that

milk, bread,
necessities. I -

regard to

and

Asked
those

tax on them,"

a

.

added

true

are

other

is

satisfied

that

have

incomes

not

if he

who

economic and social sys¬

the

than

the

/

•

'7.7 5%

in

suggesting

was

•

.

sale.

final

1

at ,50%

starting

that

Assertions

.

con¬

from

sub-

now

the

T-

submitted

Committee

request, Randolph Paul, Tax Ad¬
viser
to
Secretary
Morgenthau
presented to Committee members
on

March

16, statistics on various

M.

under

tax

attached

and, speaking
said: "That

difference,

under your

critical

this

in

hour

$7,000,000,000."

raise

to

7,7.; '

,

,7

.

"

Mr. Cowdin retorted that the

organization's plan would yield
$1,500,000,000 more from both
large and small concerns than
they currently pay.
"B;ut youri
plan, does
favor the largest
ones," Mr. Cooper insisted. '/•

-

because

the

greater

im-

sales to Federal,
governments.

to

*

plan and here we're called upon

far apart on

were

sale

portance

Cowdin

Mr.

State and local

7

dis-

sharply

saying that the only
7 On Mar.10 proposals for the en¬
companies • which
might
be
actment of a retail sales tax and •/■■., aided
in
that
respect were
moderately higher corporate and 7/ those whose earnings are be¬
individual income levies to raise
tween 100% and 200% of their
$5,000,000,000
in
new
revenue
base credit, based on pre-war
were
presented
to
the /House
profits.
"You soak the smaller
Committee in behalf of

agreed,

the New

by. W.. J. Schieffelin, Jr., a mem¬
ber

'chamber's

of 'the

recommenda-

a

"war

rates
2.

-

retail

Raise

tion

and

•-taxes.

,

individual

income

7

3. .Raise
next

7-

:

another

Autumn

with

ence

corpora¬

the

$2,000,000,experi¬

after

sales

tax

-

and

higher corporate and individual
rates.

-

.

-In

tures

in

even greater sav¬
non-defense expendi¬

-than

"We
months

have

had

in

mind

$25,000 net income.
Cowdin
and
Cooper
agreed that there should
be
some differential and Mr. Cow¬
din said that question was one

7 Messrs.

forgot in presenting his pro¬

he

/

gram.

.

•

According to Washington ad¬
vices to the "Wall Street Journal"
of

14

Mar.

poll

a

of the House

Ways and Means Committee, in¬
cluding all except two members,
showed that a sales tax is favored
a

There is

majority of three.

this majority
graduated retail sales tax,

strong sentiment in

j

a

Meanwhile,
mittee

which added:
-

influential

members

were

.

com¬

confer¬

the joint
Committee
on

ring with the staff of

Congressional

for

with¬
holding tax collected at the
source
on
gross incomes paid
out to individuals," he said.
1A
$7,600,000,000 tax program

be¬

than

less

the

recommending

made

and

large

advantage to concerns with

7 an

$1,300,000,000
recommended by a joint Sen¬
ate-House economy committee.

\

be

small com7 panies while present law gives

by

addition, he said, Congress

differential

tween

by

in

Cooper developed that the
no tax-

rate

with

$1,000,000,000
increases

re-

N. A. M. recommended

ranging from 2% to 10%.

moderate

000

tax"

sales

Cooper

77'.;,...-/_7/1 • ,
questioning Mr. Cowdin,

In

Mr.

tions:

'7 1. Raise $4,000,000,000 through

and let the big

Mr.

marked. :7' •';

.

committee, who advised that the
problem of raising the rest of the

'

more

out,"

ones

taxation

-

still

ones

York State Chamber of Commerce

to the
Mar. 11

to the Committee's

that

lost to the Treasury

*

yield from that source..

In response

A.

N.

would be the amount of money

~

the manufacturers'

but

tax

retail

the

of
•

tax,

sales

overall / retail

-Treasury

Treasury Department on
for statistics as to the likelihood
of the

yield

Press:

said

Cooper

$57,528,000,

pay

showing

-

same on

sale

the

request, was

Committee

the

Associated

the

Mr.

said the advices

the

M.

A.

would

that

for

by

N.

$1,500,000,000 in corporate rev¬
enue.
Oy /.7,77.7//' .7/V;;77 ;7

ings

made

the

recommendations

should make

a

first

*7;

said

it

that

the

on

$20,000.
He

/; The Treasury and joint com7 puttee's /estimates were about

hearings

stated

of

combination would

first

The

point

/

•

in the Baltimore "Sun" of Mar. 12
was

the

consumption, at

-

sales tax, $3,875,000,000.

money

before
the
House Ways and Means Commit¬
tee have developed more or less
interest in sales tax proposals as
a
means of
raising revenue, and
Later

point of final sale, or
2. An 8% war tax on general

.

social

is set aside for
the people by the Government
and given to them when they
need it, he added.

^whereby

general consumption at

on

the

-

justified

increased

manufacturers' tax,

4%

were

to war

items

7He made these

security taxes because the pro¬
gram
is a "savings bank for
working men."
It is a method

tax

$2,705,000,000.
; /
5%
overallmanufacturers'

-

:
;

that he thought

Government

V:. :r$

'77-/

/imposed at the point of final
sale, together with a 4% war

comparable
bases for-taxes, whichv would
produce these yields: V
/ r
tables

,

He also said

said: 7-/

77I. A

tax,

personal ex¬
$7,610,000,000 revenue be deferred
emptions do not have purchas¬
until next Fall.
Reporting this
ing power which would cause
from Washington Mar. 10 the As¬
inflation,
the Treasury chief
sociated Press stated:
replied: "I am satisfied."
greater

advices

Associated/ Press

The

likewise

excise

to

Revenue
,<

,

spe¬

chewing
semiluxuries.
-"If a person can af¬
ford to buy those things, he can

despite all that is being said, to

posals as that of Sir William but also against the creeping
paralysis which has already set in. It would be well if the
people of this country were to form the habit of scrutiniz¬
ing each new (and those already in force, for that matter)
regulation or restriction to determine for themselves
whether it is really essential or even helpful in this war
effort—or at least to ask to be shown why they are essential.

>

in¬

proposed

justify

because

gum

7

ing hand of unnecessary governmental regulation is already
heavy upon the land, and is growing heavier and more
deadly day by day. We must guard against not only the
sweeping paralysis that would be inflicted by such pro¬

could

soft drinks, candy and

what Russia

imagine the people of this country "going over-board" in
the way thus suggested. We are, however, obviously even
now moving step by step in precisely this direction, prob¬
ably without having more than a vague suspicion, at most,
of the fact that we are so doing. Regulation follows regula¬
tion almost daily which touch all manner of people most
uncomfortably—and the resulting "red tape" and confusion
is crippling, even killing, many business enterprises which
will serve the country in both war and peace.
The deaden¬

present¬

cial commodities like cigarettes,

frankly revolutionary proposals
to work directly, frankly and upon

us go
mammoth scale to remake

tem.

•

ject

:

Morgenthau said he felt

creases

;could have done under some other system is wholly beside
the point. The traditions, the habits,, the aptitudes and the
•temper of the Russian people are as different from ours as
night is from day—and Russia, let it not be forgotten,- spent
years getting itself organized before even a start could be
made on preparation for this conflict. Apart from any other
considerations we shall win this war, if we win it at all,
the American way.

Morgenthau's

posed.

taxes^ the \ yield. 5 the N. A. M.'s proposals, a cor- would
become $394,000,000. 77' -7 poration with $100,000,000 net
Later,., /statisticians for
the //income would pay $40,000,000
and • under present law would
/Joint
Congressional / Internal

-

•

ments to the Committee on Mar. 9.

_

has

the following

take

we

Mr.

to

as

If it be asserted that Russia has

'What Russia

10

of Mar.

surprisingly well against the Germans, the obvious
reply is that it is the United States and not Russia that-is
discussion.

16.7% of his income.

or

and

governments

a year pays

$250 in F«deral, State and local

sale

Government

tractors and to

pays

now

sales

retail

or

.Morgenthau op¬
v:/'./'''V/7 7:7,tv
Mr.

proposals woqld work to the ad¬
exempted, the 5% retail sales vantage of the large corporations
the
disadvantage
of
the
Ttax yield would drop to $3,113,- and
smaller ones was made by Repre¬
000,000. If exemptions also were
sentative Cooper (Democrat)
of
i given
to food, medicine, cloth¬
Tennessee on Mar. 13.
To quote
ing, fuel, sales to States, local
Federal

the

mately 17.3% of his income.

done

under

year

a

$130 in existing, Federal, State
and
local
taxes,
or
approxi¬

rates

.

are

purchases, he asserted. . '
Secretary cited figures
show that a single person

which

•

,

$7,471,000,000. /
f
/
7 7 He estimated that if sales to

groups

The

manufacturers'

a

tax

•

of

their
;

tax

corporate

by Secretary Morgen-»
thau, and contemplated making
up the difference through either

$3,780,000,000.
10% manufacturers' sales tax,

in no posiinflation through

cause

and

proposed

7:

/ •"

manufacturers'

5%

•

.

causing the greatest
inflation. , The low

groups

to

income

vidual

,

•

groups

in

alternative for Secretary

an

$759,000,000.

,

'
with
arguing that

the

low

are

ment is

having grave difficulty in getting its already bloated
bureaucracy to function even reasonably well. What on

the

is

which

:

•

charged

misconception

we

normally possess offsetting, advantages which can be made
greatly to outweigh its disadvantages ,'over such dictator¬
ships as Russia, Germany, and Japan, and, obviously, to
retain, the-advantages of' democracy,- we must; preserve
democracy and the free enterprise system so far as prac¬
tically possible even in times of war. .,.7,;
This is not a matter merely of saving the system we

He

■:

one-third of the increases in indi¬

000,000.'
■ ;7 ;:'
1% manufacturers' sales tax,

7

their

from

shoulders

the

to

Manu¬

yield $4,400,000,000 and the second $4,800,000,000, he said.
; 7
i< .Morgenthau's. recommendations
;
For corporations," Codwin provfor steeply increased individual
posed a combined normal and
and corporation taxes.
' /
7 war tax of 40%, compared with
77; Mr. Paul's statistics showed:
/; the Treasury's 55.%, and a 90%
v.
1% retail sales tax, $1,014,excess
profits tax, compared
''"•000,000.
with
the
Treasury's
recom¬
:
10% retail sales tax, $9,702,mendation for graduated rates

those least able to bear it.

;
/

believe it to be likewise the J
conviction of most thoughtful Americans, that democracies
it

load

tax

of

by J. Cheever Cowdin.
The
latter's
proposal, said the
Associated Press, called for only

.

as

..

•

shoulders

Association

facturers

-resorting to some form of sales
tax to help raise $7,000,000,000

v

Mar. 12 in behalf of the

on

National

.considering

*

be tolerated
at any other time.
We may expect that the resulting tem¬
porary
system will embody "compromises," / theoretical
illogicalities and inconsistencies and even anomalies. Yet

.

variety of reasons, any

a

Means /Committee have been
the advisability of

.

.

first

its

public
reaction
to
the
$7,610,000,000
which free enterprise is dominant, faces many problems
7/ tax program of the Adminiswhen it undertakes "total war," many problems not en¬
tration, Secretary ' Morgenthau
/ charged that the
groups advocountered in a nation where every man, woman and child
eating lower exemptions or a
has long been a slave of the State.
It may be assumed,
general sales tax are trying to
that certain concessions to state control are necessary in
It

<

"For

;

year

a

$1,500 for a
with a credit of
$400 for each dependent." /; Re¬
garding Mr. Morgenthau's.. testi¬
mony before the House Ways and
Means Committee on Mar. 9, aidsingle

./J-/ >->/,i7:7/77

/;•,•,/.•

i

begin at.
for a

now

lose this

Overdoing It

saying in a
77,

as

/type of general sales tax would
about
under ;; not affect all tax payers uni¬
the present law, and that $3,060,formly. Even though levied on
000,000 additional be raised from '-all items at a uniform. rate,; a
v
increased corporation taxes, Mr
; sales tax of whatever form is
Morgenthau pointed out that the l, ; .unlikely to affect all prices
.4;'
equally." 'y ,77:7:/'7; /!■*
proposed schedules involved "'no
Members of the Ways
further lowering of the personal
and
an

war

Paul

Mr.

memorandum:

mately $3,000,000,000, or
60% more revenue>■ than

some such experiment. Obviously, however, this is not
the situation by which we are faced. We shall either win or

by

types of sales taxes according to
the Associated Press, which re¬
ported

in

increases

proposed to the House Com¬

was

traditions, its

own

$4,400,000,000... sales

,

moderate

individual and corporate tax rates

»

own

a

'and

tax

Taxation

a

enue

on

sales tax.

lines
.

raise:

the shape of a rev¬

program

of

which includes a

They discussed out¬

proposals

w^iich would
•

-

*

THE COMMERCIAL & FINANCIAL CHRONICLE

1. $1,500,000,000 from

r

^tax.

a
' -Vi

"

sales
-Vv.;

.

2, Between $2,310,000,000 and
$2,5.60,000,000 from corporation
taxes.
(The Treasury proposed
corporation taxes to yield $3,•060,000,000).
V'
;
3. Between $2,200,000,000 and

$2,450,000,000
income

-

would

.the

tax

and

other

proposals

6358 and

mated.

/.//'■,

able.

l

ury

,

from

bill

v.;

Under

the

Fisher,

Bar

of

Association

I

bill

permitting deductions
ordinary
and
necessary

of all

sales tax would have

inflationary effect."

very

Paul

saying:

as

"A

sales

But

is

tax

the

on

2.

•

with

compared

•

77
This, has been proposed
the
Treasury and
is

taxes.

hand,

1

sales

a

by

see

no

of

present

the

need

proposals

he

Man

5,

the

United

general sales tax if it

cided

to

excise

separate

4.

Press

the

the

made

Adminis¬

contending

mediate

cise

separation
that

enactment

of

taxes—higher

",

new

ex-

on

once.

Chairman

.

House

-

from

be

■gains

/

Treasury

other

the

rec¬

-

income

while

year,

carried

"nest

as

while- under

ward

to

money

could

in

from

Associated

suggestion

forward

AMOUNT

and

OF

On

March

be carried

As to
ury

from

bill

in

the

i. personal

12

\;7
7 =

$800
"

is

be under consideration

to

tion

understood

:
...

following

'

•

by Mr. Paul, Tax Adviser to
Secretary Morgenthau, summariz¬
ing his objections Mr. Paul said
that:.':

■

If

bill

this

■i.

'■/■//,//<

law

-

9Q0

-,

777.

i;ioo 7

;

•

1

could

j

,

3.

capital

gains

capital' gains

rterm
A

would, be

high

the

Additional

4.

■

would

provided.

.

7

.

v

<

..

ever

The

before.

of

mittee,

.

.

H.

R.

the

the

your

6358,

Mr.
and

completely

segregate

capital




in tax

law

13

1.2

19

2.1

56

25

40 i

72

32

79

r

•

// v;7 :

128 V

'v:'/". /

147

117

7

59

•/

1 68

230

165

345

221

470

,' ./180

eration

has
been
thoroughly
approved and recommended by

/v.

735

1,023 '
7

7

2.7

1.5
1.9

2.8

5.1

2.3

3.3

6.0

2.7

8.5

3.9

4.9

9.2

4.3

5.9

11.5

5.6

it

before

hours

a

rapidly

13.8

'

V

8.7

18.4

9.7

20.5

684

11.4

tion

and

Labor

'

In

9.7

j,

using

collective

the

machinery

of

bargaining, concilia¬
mediation, and the

12.0

War

12.3

declared,

Board, Mr. Green
the necessary steps

2,178

3,740

1,562

17.4

29.9

12.5

"will

be

2,994/

4,888

1,894

>7

20.0

32.6

12.6

any

2.544

7

J7;7

77/

7:

7

..

37*4

12.8

forceful

28.9

41.7

12.8

marked

27,715

6,833

41.8

55.4

.13.6

36,487

48,055

11,568

48.6

64.1

15.5

53,214

69,625

16,411

53.2

69.6

16.4

429,610

83,956

69.1

85.9

16.8

73.3

88.0

14.7

78.5

89.6

11.1

10,418

20,882

-7

733,139

;■

7

.

879,610

146,471

4,479,610

556,486

INDIVIDUAL

INCOME

TAXES

LAW

AND

AND

/,

PROPOSAL

$1,500
-Effective Rates
»

Present

"

'

law

Proposal

Increase in

Increase

Present

in tax

law

t

'*

—

$6

$16'

effective

Proposal

32
48

1,900;

32

64,

2.000

42

80

52

••
•

.

99/

61

118

71

137

•

—

80

2,500

90

156

.

'

\

175

A%

1.0%'

.8

1.9

1.1

1.3

2.7

1.4

32

1.7

3.4

1.7

38

2.1

4.0

1.9

.6%

2.5

4.7

2.2

57

2.8

5.4

2.6

66

3.1

6.0

2.9

76

3.3

6.5

3.2

85

3.6

7.0

3.4

147

4.6

9.5

4.9

,

re¬

of

established.

Mr'.

George Meany and

were

Daniel J.

Tobin, representing the

AFL;

J.

R.

Thomas

CIO

and

Julius

representatives;

Sidney Hillman, head of the War
Production

Board,

Labor

Mrs. .Anna

and

Divi¬

Rosenberg,

secretary of the group.
This

six-member

War

Labor

Board

was

dent's

suggestion, in January, to

set

at

up

confer with him

jurisdictional

the

Presi¬

settlement of

on

'

2,400

He
purpose

in addition to Mr. Green and

sion,

—

19

47

been

rates

25

$10

*

13
23

r

1,800

—

the

Participating in the conference,

Emspack,

—Amount of Tax-

■

methods."

that

from

resort to

UNDER

RATES

dependents

exemption

free
or

Congress to eliminate strikes,
by creating this machinery, had

Murray,

EFFECTIVE

taken

threat of strike

24.6

7,473

7,224

3,923,124
OF

all

3,194

4,929

345,654

1,700

-/

tional questions that may cause,
in defense
industries, strikes."

540

'

•

oper¬

27.2

'

•'

,

388

10.8

possible, to

24-hour basis."

a

24.9

$1,500
1,600

:

make

as

24

fested both by the AFL and the
CIO
in
eliminating jurisdic-

8.3

...

work

urged that
it possible,

of
course,
satisfactory.
The
President
expressed complete
satisfaction at the spirit mani¬

7.2

15.7

will

steps
to

We

14.9

exemption

.

day.

7.4

■

■--personal

these

possible

249

'

1,333

All

make

"The President," Mr. Murray
declared, "is in agreement that
the
performance of labor in
production is exceptional and,

.6%

4.0

•

' 6.6

./

.

7 J''.

1.0%

'4.6

•

77:

113

;

was

ate on

rates

Proposal

A%

40

•

happen to be.

agreed," Mr. Green
continued, "that continuous op7

effective

sales

a

4,000

535

286

6.2

13.4

7.2

5.000

375

805

430

7.5

16.1

8.6

6,000

521

1,100

579

8.7

18.3

9.6

with¬

8,000

873

1,735

862

10.9.,.*,

21.7

10,000

1,305

2,435

12,500

1,960

3,425

15,000 *•

2,739

tax

tax

was
war

ruinous inflation.

to

all

or

a

necessary to
and
prevent

and

other

that would

000,000,

of

an

individuals, with
additional

revenue

25,000
...'

•„

75,000

•

be

:

-

'

.

9,960,

24.4

tions.

It

erence

to

was
a

10.8

'"11.3

1,130

13.1

1,465

15.7

27.4

11.7

1,796

18.3

30.2

11.9
12.2

"
.

r

12.3

54.3

13.4

,llv426.

15.2

48.Q

16,261

52.7

69.0

16.3

69.0

85.8

16.8

878.935

146,381

73.3

87.9

14.6

4,478,935

556,411

78.5

89.6

11.1

68,965

732,554
.

39.8

40.9

83,851

47,425,
428,935*

►

35.3

27.5

6,706

63.2

345,084

3,922,524

23.1

3,096

2,446
.

27,145

20,439
52,704

■

5,000,000

'

35,999

-

500,000
1.000 ono

7,060

6,864

•

.

•

50,000"
100.000

/•'

could

4,535

4,614

20,000
'

*

.

$5,000,-

.

v

between

ences

tion

of

the

two

differ¬

organiza¬

established in pref¬

proposal for resump¬
talks

peace

between

the

labor groups which had been ad¬

'

He preferred

tax

personal exemptions.

He said

285:

that

the

apply

138

Ways

holding

withholding

3,000

the

told

finance

no

"It

as

Committee

■

income tax law in that it would

that might

mi

249

Seidman
Means

either

7

'■

management

Present

Sunday

whether it would be paid for

UNDER

TPffppfivf* "Rnfp't

added,

4

'

a

RATES

he
on

seventh day of work, regardless of what day of the week

7

,

A

7 Increase

Personal

2,300

,

EFFECTIVE

40-hour

the

undecided,

labor.

AND

that "it

that

paid only for work

PROPOSAL

dependents

7.7

left

was

rates:

AND

remarked

whether double-time would be

pro¬

tax

agreed

should be paid for overtime and
double
time
for
Sunday"
It

•

the following

present and
individual
income

24

Net income

Seidman and M. P. Fisher of Bal¬
timore the "Wall Street Journal"

would

change fundamentally the present treatment of capital gains
and
losses
under the Federal

sub¬

were

showing

posed

Green

week
shall
be recognized
as
standard, that time and a half

or

tables

by

Congress."

of the

purpose

a

take

unity

name

the

of its tax set aside."

we

national

enactments

was

have part

3

problem of

would

From
Secretary Morgenthau's
proposals to the House Committee

Married—no

2,200

Com¬

Mr.

cents, the

and

restrictive
Federal

satisfac-

more

the

cents

profits tax of 60%
it would have some in¬
subject to more than the

31

PRESENT

New

duration

the

a

to

10.8;

AMOUNT

•

Trade, who advo¬

for

than

excess

Mar.

was

answer

production
>

•

.2,100

war.

tory

12.9

5,000,000

•

"

,

of

give

prof¬

strike

to
•

80% rate and accordingly would

on

Murray said it was agreed
"voluntary action on the

959

1,000,000

;

Seidman, Chairman of the
Committee

Mr.

that

1,227

500,000 "

.

Mar. 9 heard

on

would
excess

corporation

11

for-

•

un¬

by the# Associated

remarking:

1,990

*100,000

said:

before

come

as

President,

2,720

7775,000 777

77

two-

a

any

■'

21

bill,, capital

over

before
set aside

80

80

for

reported

Press

the

1,493

20,000

and

be carried

were

with

1,031

25,000 7 ,7

of

Mr. Paul also said:
bill

this

than

above

meeting

of

more,

$5

649

12,500 J / 7

As to the views of Mr.

the

Accordingly,

In part,

L.

exemptions

to
taxation

the Treasury
is opposed to the
passage of H. R. 6358.

or

.

of

outcome

7

.'7

/J

cated the removal of all
personal

upon

Department

-

forward

period.

York Board

gains, would be drastically
unnecessarily reduced at a
i time when all elements in our

than

ject to

$8

';483

7 :7 50,000

five-year period;

a

under

Taxation

type of income, cap¬

population are called
pay
higher rates of

year

M.

and

{

over

The Committee

ital

•

carried

'

■

7-7
J

j' capital net gains

5. The effective rate of taxaon one

from

the

net losses could

be

•

tion

deducted

u

the

;.7;v:,

•'•■■" 15,000

losses

| ward and offset against future

opportunities

,

avoidance

tax

S

income

.brackets would be favored,
for

be

while

in

be

Under

gains

|

relatively small group of

1 taxpayers

against
current

net

,

1

,7:

discussing

22.2

8.000

10.000

77.

offset against future capital net

•eliminated.
3.

not

could

long-

and

;

....

347

bv?:»: 5,000 0 7 ;;

Treasury rec¬
ommendations, capital net losses

table distinction between shortterm

;77 7 4.000
■

other income.

..

■

capital

•*

.

the

bill,

tax

surtax and normal

war
more

"If the

person—no

Proposal

69

;v7- 2,500 J
3,000 T/-.7

to $1,000; while under

up

this

income

mentioned.

TAXES

wl

bar-.

mediation,

or

part of labor to yield its right

combined

corporation

$3

f

;
7 '
777 2,000 *.:•>-■;• 7;.

:^^:;..6^Q00jJ //

/J':'/'; '7^!

.

Under

year

with respect to the capital
gains of individuals would be
completely abandoned.
.=
2. The very
real and equi-

a-flat-rate

could \ be
deductible
other
income
of
the

approved,
of ,ability to

pay

at

7

"

•'777 L5007 7
777 ,i;600 7/

Treasury rec- ..V7n
ommendations, capital net losses 7.;

'

were

The principle

10%.7
2.

t

—v

■

bill, capital net gains
taxed

be

of

a

aver¬

Increase in
Present 5V;.V.

'•

while

rates;

under this

of

ter

tax

would

;

by the

House Ways and Means Commit¬
tee
was
voiced before the lat¬

income

be

an

.

'

77.7

Y .7 1.000

differ

as part of net
income at the regular corporaT

opposition to the •j.

80%

] be recorded in the
-

.

accounts

ilUIUUJUu

i exemption 7

7 1, Under the
Treasury 'recommendations, net capital gains

/

that

mean

rate

"

X: -'-' 7,7<:'V7?

'

respects:

of
a

learned

Single

<

150

before

corporations, the Treas-

this

dollar

"amount
.

LAW

Collective

operations of the National War

In

provision.

rise to

its tax,
tax of

by

INCOME

methods:

Labor Board.

"'

;--7

recommendations

?

-7

7

Net income

for¬

against future
gains over a two¬

net

.:7'7V'7

,

;vj | would be taxed

which

bill

der this

return

PRESENT

three '

or

interrup-.

or

production through these

gaining, conciliation

77 "Whenever the receipt (by a
^corporation)
of an additional

would

INDIVIDUAL

not

than

more

■■

'

'

Press

does

amount would

"

is

production.

effective

age

corporations

This

war.

strikes

with¬

the two leaders of organized labor

peacetime
"This

7

•

mittee, said he was not particularly impressed by the Seriate suggestion because of the
> relation of excise taxes to the

Boland

the

the

The

offset

and

capital

•

whole program.

and

to

and

fixed

the

which added:

under

-year period.

•

•

'

eggs"

after

five-year period;
this
bill, capital

a

over

net losses

Doughton of the
and Means Com*-.

Ways

aside

amounts

repaid

to

be

to

-

made

was

offset against future capital net

.whiskey, cigarettes, beer, gaso¬
line, etc.—collections could start
almost at

the

suggestion

be

resort

tion

rates

wage

ations from wartime production

Secretary Morgenthau on Mar. 3
that the Government
put some of
the
proposed
corporation
taxes

a

net

on

flat rate of 10%.

a

current

could

im-

levies

,7 The

and

'

.

the

war

would

that

;

...

pro-

by

in¬

net

to

the

Labor,

izations disclosed that it had been

out

aside

of

the Congress of Industrial Organ¬

would

corporation must have

apply
only to income in the topmost
tax brackets.
Mr; Morgenthau
this bill there would be no de¬
7 suggested
to Congress that if
duction of capital net loss from
T any
part
of
a
corporation's
other income. ', ,u k profit is taxed more than
80%,
5. Under the
Treasury ^ec.- 7 the amount of the tax in
excess
ommendations, capital net losses

new

$7,600,000,000 tax pro¬
These.advices added:

posal,
-

rate

Under

the

The Senate Finance Commit-

.

rates, with

ductible

7

tration's

tee

in

normal

to

ommendations, up to $1,000 of
capital net loss would be de¬

de¬

was

proposed

from

taxes

gram.

,

subject

turn of-a decedent.

Federation

Philip Murray, President. of

standards

corporation
for
the
reemployment of labor, either di¬
rectly or in the construction of
capital needed in shifting oper-

"

maximum
gains of
30%;
while
under
this
bill,
long-term net gains would be

immediate consideration of

upon

included

and

surtax

reported, several members of the
House Ways and Means Commit¬
tee
indicated they would . insist

.

amounts of income for personal
services from the last tax re-

taxed at

On

a

/

effective

lined.
.

7

net

be
ex¬

17,1

Green, President of the

American
and

with

Mar.

on

7

in

rec¬

the

large volume of

a

the

7

corporation may do.'
3. Exclusion of undetermined

'

there may well

war

"After

to

stockholders

as

efficiency

William

merit."

set

:

of a personal holding cor¬
poration to7pay their-tax on
dividends

of

conference

a

Roosevelt

agreed

deductions

chargeable

long-term
gains would be reduced by onecome

for

taxes

another

half

out¬

for

Following
President

penditure in readjusting indus¬
try and maintaining employ-

-

.

7

3. Under

need for

ers

bill,

'•
'•
Treasury

ter the

;

capital accounts over a period.
2. Permission for stockhold¬

-

would be

gains

ommendations,

to help finance the
gigantic
war
production
drive,
but he emphasized that fiscal of-

this

permitting

,

made

rec¬

surtax

and

under

net

■(; taxed at 10%.

necessary,

cials

normal

while

rates;

Paul,
according
to
the
Press, suggested lowered
income tax exemptions and com¬
pulsory defense bond purchases,

either

full

short-term

United

if

ments,

-

.

the

Mr.

•

capital gains.
the
Treasury

Under

ommendations, net short-term
capital gains would be included
in net income and subjected to

inflationary

income

other

tax is not as
inflationary as
borrowing from banks; it has a
direct effect on price ceilings."

•

•

term

<

quoted in the Associated

was

Press

Mr.

maintenance

i

:

.

"a

recog¬

ex7
Randolph Paul, a Treasury
production 7 tax adviser, later told the Com7;
■;// 7, mittee;
';////'/'. 7 •

income.

.

?

Means

was

"Furthermore," he said, "af-

Commit-

;

and

in business operation."

on

of taxable

rec¬

the

Amer¬

7

t

it

that

"very high top, or
'marginal 7 rates,'
might leave little incentive for

Balti¬

the

?' penses; incurred, in

//"..j

1

Treasury

P.

Income Taxes, asked the
Ways and Means Committee to
adopt a provision in the tax

the following

in

Ways
that

Labor Heads Agree to i
Ban Wartime Strikes

so-called

widely
ommendations, a differentiation 7; favored on the Committee.
would
be
retained
between ;
Mr. Fisher also asked three
short-term and long-term cap¬
;; other
proposals
which
the
ital gains; while under this bill,
;
Treasury has indicated it favors.
there would be no distinction
They;are:
-7 7;:777»'-7.7.,;7
i
between short-term and long1. Capitalization of tax
pay¬

-

a

.

this

tee

;

recommendations;differ

.

1.

On Mar. 5, amplifying the op¬
position expressed previously by
Secretary Morgenthau, Randolph
Paul, Treasury Tax Adviser, as¬
serted that

/

.

respects:-'

/■;>/

•

Treasury

House

nized

was

Chairman of

more,

ican

,v
' .• .* 7
As to individuals, the Treas-

7

asked

V

!'■'

Morton

' *

upon

the

Seidman

questioned
by members of the, Committee
who appeared to show no
great
liking for his proposal. •

7

consideration to the
embodied in H. ;R.
found tliem unaccept-

full

gave

;; proposals

the

.

Committee

Mr.

7

gains and ,1.
these

capital

deciding

recommendations

r

by the Treasury, it would raise
nearly $7,500,000,000, it is esti-

:
-

■(

of

"

■

recommended certain
in
the
present
tax
In

of 80% should go into the returnable "nest egg."
*
v
-■
The Treasury Secretary told

•

;

tions.

of the Treas¬
in his statement of Mar. 3,

treatment

$1,340,000,000

?

00Q of income not

Secretary

losses.

Treasury

I

taxable
exemp¬

1942,

' still

seeks
to
raise
from
additional
excise
taxes.
Taken with the estate and gift

now

f because of the personal

-

.

changes

(The Treasury
get $3,200,000,000
from this source.)
v
program
leave much of the

capital, gains at a flat rate of
.10% for :bojth: corporations;arid,

ury

to

This

it

The

taxes;

proposed

gains and losses from other inand that it would tax - nei-

individuals.

individual

from

raised by applying a 10% withholding tax to the $50,000,000,-

come

1151

!
*

vanced by John L.

Lewis, former

head of the CIO and President of
the

tion

United
of

Mine

which

issue of Feb.

Workers,

was

made

5, page 5773.

men¬

in

our

iHE COMMERCIAL & FINANCIAL CHRONICLE

1152

President Roosevelt

Reports First Year's

Lend-Lease Aid Totaled %llh Billion

(

defeat of the Axis,. the Amer-

5

ican

first year
amounted
to $2,570,452,441
but actual transfers of defense articles came to
$1,411,000,000.
The volume, the President said, "falls far short of
of the lend-lease

In

90

stated on Mar. 11 that aid had

his report,

and

Articles
use

transfer, or o
:
488,000,000

_

in

plane stores and equipment, re¬
pairing
and
remodeling
of
British naval vessels, construc¬
tion of naval bases and plane

transferred,—$1,411,000,000

awaiting

Articles

process

of

manu-..

supply

128,000,000

facture

world.

Servicing and repair of ships,
.etc.Rental

;•

_______

and

of

charter

126.000,000

ships,

United States
Miscellaneous

170 000,000

____________

the

for

The total of funds authorized by

in¬

be

creased, it said, to carry the
ever-increasing load of LendLease material.
Ships, as well
as all other United Nations fa¬

$48,006,650,000, the report noted,
of which $18,410,000,000 has been
appropriated directly to the Pres¬
ident, witn the remainder repre¬
sented
by war
supplies which

force
be

This picture was given of the
manner in which the countries

of

resistance

of

peoples, the full
enemy might now

the

at

gateways

our

ports
'

own

'

•

Lend-Lease has given us ex-

j

perience

with

which 'to

fight
Lend-Lease has

the aggressor.

{ expanded our productive
ity for the building of

l

tanks

and

The

>

planes

weapons

we

capac-

guns and

and

ships.

made

and

shipped have been tested in

In his

preliminary report for the year 1941, Louis H. Pink, New
Superintendent of Insurance, calls attention to the tre¬

State

mendous

growth that has taken place in the group life insurance
field, pointing out that the amount of this form of insurance now
in force

($15,300,000,000) is almost equal to the total life insurance
1912, when group insurance had its start in the United
of group in-^
surance," said the Superintendent, f In conclusion, Superintendent
in force

in

"The growth

States.

"is not only a story

but

progress
ress

cost

prog¬
It has afforded low

well.

as

protection

Pink has the

also

has

made

will

between

labor

attendant

little to

a

expense."

1

^

;

j

entire

their

Under

resources.

Act

send

we

and

.

the

Administration

of

all

serves

in

an

It is based

It

equally.

1"

neither rich

nor

v

creed.

world

In

a

knows

race

nor

ordered

ac-

poor,

7 cording to the principles of in-

there

surance,

Mr. Pink's

Companies in Liquidation.

thrive

cannot

is

na-

voluntary cooperation and

upon

■i

hatred and

the

Rates

and

authoritarian state.

;

ac-

dozen battle¬

a

Lend-Lease

the

!

on

it

tions

its

with

turn-over

say:

know

we

:

:i

management

labor and has done not

reduce

and good
and

as

peculiarly the child of free

■

for better understanding

following to

Insurance
f

of

millions

for

It

workers.

our

of insurance

of social

one

report, submitted to :i
Legislature on March 9, also ;
fields, teaching lessons of un¬ covers
the
following
subjects: i
told Value.; •
7
Group Insurance, Mortality Ta¬
Lend-Lease Is now a prime
bles, Non-Forfeiture Values, Fra¬ j
mechanism through which the ternal Benefit Societies, Accident j
United
Nations
are
pooling and Health
Insurance, Insurance 7
combat

V tual

cilities, are in a common pool,
the report asserted.
,

could be transferred from United

continued

battering

and

United

must

shipping

tank

a

front.

Russian

Nations

Congress for lend-lease aid is now

produce

to

the

these steadfast
?

,

than

liver

4,000,000

__

depots
all over the
77' :v7
.v:
''7 V"
report
spoke
also of

transportation problems, noting
it was 10 times harder to de¬

the

in

facilities

Production

.

The

243,000,000

*

»•-

air¬

and

ship

ordinance,

armed

rials, their people with food—
our
presently
grave
position
might indeed oe desperate. But

the

Defense articles

York

for

the

lease

their

people know

forces with weap¬
ons, their factories with mate¬

v

which is required to be made to Congress every

President broken
$2,500,000,000
lendaid supplied as follows:

days,

down

victory."

needed to turn the tide toward

is

what

program,

Group Life Insurance Made Tremendous Strides
Says Pink, N. Y. State Ins. Superintendent

.

Roosevelt, in his report to Congress on the

President

of the step

the' wisdom
they took one year
ago
today:
Had mot the- na¬
tions fighting aggression been
strengthened
and
Sustained—

i

Thursday, March 19, 1942

be no mass

can

world

no

Like

wars.

other great forces in this coun-.

try,

insurance

must use every
those'vadjust-'

effort

to

make

ments

which will

really

help

and which are : fundamentally.
sound. The insurance industry
should not fritter away its en-

;

ergies on changes which will
'
only impede usefulness and seThe report lists several types
places where they can best be
aligned against the ' Axis are
curity:
but must and will do
i
operating:
' V.
777'7777';: > used in the battle against the of -coverage in connection with
everything possible to help the
"All
the
resources
of
the i Axis. Through reciprocal lend- which there were rate reductions
lease provisions we receive arms during 1941.
United Nations are now part of
Reference is made ■j Nation in this period of.crisis.
Mar. 11:
■
a
common
pool, out of which ;> and materials from the other to the fact that "one of the most 1
The
British
Commonwealth
arms and men pour as considerof Nations and 33 other counj United Nations when they can important and vexing problems Radio, Phonograph Output
of rate
best be used by us.
regulation involves the
>
tries are eligible for lend-lease 7 ations of military strategy dicEnded by WPB Order
tate.
Into this pool flow Lend- f ;
The war can only be won by treatment of large risks with in¬
assistance, which now covers
Lease munitions, together with
contact with the enemies and terstate operations, a substantial
two-thirds of the earth's surface
j The War Production Board has
i
the
entire
military, air and if by attack upon them.
That portion of which is carried on in ordered that the manufacture of
and aids nearly two-thirds of
naval strength of all the United i takes time, for the United Na- states which lack rate regulation, radios and phonographs for civil¬
its population.
■(
Nations. ■■ 7":'\v-:v'v 7 tions need more and still more or where the degree of regulation ian use be halted after April 22.
The
$2,570,452,444 in assis¬
"Out of it, air, land and naval
equipment and transportation, differs materially from that in Plants will be permitted to com¬
tance extended is but a fraction
New York."
The report adds:
plete sets on which work was
of the total lend-lease funds of 7 units of American forces have j Success will come dearly, at the
started before that date and the
r
price of defeats and. losses. The
gone to the Southwest Pacific;
The problem applies to both
$48,006,650,000
authorized
by
offensive that the United NaBoard said sales of existing sup¬
British and Russian troops have
Congress,
and
when
broken
casualty and fire insurance. It
moved into Iran; Chinese sol¬ [ tions must and will drive into
plies will continue on a "first
down, it includes but $1,411,States forces to the other nations.

i

and

arms

our

materials

to

the

S

I

Regarding the report, we quote
the
following
from
Associated
Press accounts from Washington

.

.

«

,

-

j

.

.

■

•

•

.

in

000,000

diers have

of

transfers

actual

of

materials
Of the

is

awaiting

transfer

use,

or

in

of

|

charter of

I

was

the rental

in

or

ships, $170,000,000 was invested
in production facilities in the
United States, and $4,000,000 in
miscellaneous

000—the

i

Lend

of

two

appropriations—
has been obligated or is covered
by contracts already let
Further progress lies in the rapid¬
ity with which American indus¬
try can convert itself to war¬
time production.
Mr. Roosevelt
repeatedly emphasized that the

'

chine
and

for

gun

a

factory,

By the end of February, the

;7 report disclosed, most of the
7 $12,985,000,000 of actual appro7 priations in the first two Lend-

military

vital

some

Lease funds had been allocated
In

accompanying

letter

a

year

decision

arises out of certain company

;

The White House, Mar.

11, 1942.

that

in New York less than
required
by
the rates,
and plans on file in this
One method employed is

5

rules

1

State.

| the

I

of established

use

Inquiry Into
'Sea Otter' Ship Tests
Senate^iroup is conducting

VA

into

an\inquiry
given,
small

what tests were

Nthle "sea otter" type of

caigo vessel, designed for

submarine warfare.

Senator Gil¬

lette

(Dem., Iowa), Chairman of
the three-man Senate Nayal sub¬

rates,

and plans in-New York
and the application of absurdly
inadequate rates in the non-

-rules

'

7 regulated States.

Senate

their

as

coverage
;

FRANKLIN D. ROOSEVELT.
^

have

effect, if not for their purpose,
7 the charging\of a premium for

we

ago

which

practices

j Because

':7-

7

large portion of the

a

received by the De¬
during
the year in¬
claims under
the 7 more

the

said!

committee,

Mar.

cies,

a

accident
survey

type of coverage
of

conferences

pany

was

poli¬

made of that
and, as a result

held

executives, it

that there

health

and

was

with

was

com¬

concluded

considerable

room

the

purpose

of avoiding

of

basis.

.

to

the

The

permit

entire

the

radio

and

phonograph industry to war
production, possibly by the be¬
ginning of Summer.: According
to;the Associated Press a major
factor in the shutdown of civilian
radio production was the fact that
more than
$1,000,000,000 in mili¬

orders already have been
placed for war radio equipment.
Approximately half this total, it is
added, is being held by the 55
tary

firms

limited

served"
taken

was

conversion

The

"

on

10 that more intensive tests

move

partment*
volved

first

come,

complaints

for
improvement dnd that the
Mar. . 8 that companies should remedy the de¬
the group had already heard nu¬ fects. These, accordirig to the re¬
merous
shipping
experts
but port, include the use of hew pol¬
would gather all the facts before icy
contracts
granting
broader
coverage at lower rates and the
concluding its investigation.
President Roosevelt declared on fevamping of sales methods for
materials.

repairs for our vessels in .for¬
eign ports, air rights for our
ferry and commercial services
in South America, military in¬
formation
a n d
experimental
models
of new weapons, and

7, 777-

and $8,459,000,000 had been ob¬
ligated or placed under contract.
In addition, Congress has ap¬

Nations,

tools, anti-aircraft guns
ammunition, complete

equipment

a

forward along the steep road
to -victory-. ; • ;'V. 7:';7v p -h:7 V'7

by

without
payment,, include .ma¬

dollar

the

strength

go

being

country

this

to

United

other

thank

we

today.
With
that combined strength iwe :can
took

r

..:
combined

that

delivered

services

and

provided

combined and total effort of the
is needed.

being

can

we

strength

na¬

considerable

Materials

'

nation

still

and other

quantities."
Reciprocal aid, the report as¬
serted, already is an actuality.
in

Lease

-

British

and

tions

first

the

the

by

that

For

the war, side by side with preLend-Lease weapons purchased

;

expenses.

total

possess. ;

from

poured

of the Axis will take

entire

the

arrived

the pool to
play its part in this joint effort,
Lend-Lease arms are being used
on
every
great battlefield of

However, nearly $12,985,000,-

-

have

the heart

of

"Lend-Lease material, as well,
has

repairing and servicing ships
United Nations, $243,000,000

*

defense

quantities

the main front in Russia

on

$128,000,000
is in process of
manufacture, $126,000,000 was

.

and

material

British

remainder, $448,000,000

to the

come

Burma

affected

ture

-

today's

by

advices state:

same

The

industry

airplane

will

;

order.

-

manufac-0

detection

equip-

j ment, in addition to military
| radio transmitting and receiving
equipment.
'. The
Board
predicted that, when the shutdown
becomes
effective, apj. proximately
60,000,000
radio
i, sets
will
be in operation
in
about 87 % of the homes in this

:

!

J

country.
I

;7

-

\

..

Plans for the conversion of the

radio industry were
our

misrep¬
i

-

mentioned in

issue of Feb. 26, page 843.
——»

.

will be conducted
on
the "sea resentation and presenting to the
Congress the President
otter."
He explained that diffi¬ insured a broader picture of the
"offensive that the
'I
7 Correction
culties had been encountered in Coverage.
- •
•
•
'
United
Nations
must and will
In the-item in these columns
propriated $5,425,000,000 as of
drive linto the heart of the Axis experiments made on ships , de¬ : With regard to insurance against Mar.
12, page
1034, -h e a d e d
Mar. 5, 1942, to cover commitwill take the entire strength that signed above the original dimen¬ bombing,.. Superintendent
Pink "Urges Cotton Farmers to Plant
"■•v ments to be made before the
sions.
;
'
V
we possess."
says that the War Damage Corpo¬ Full
end of this year..
Acreage," the following para¬
Associated
Press. Washington
ration being set up by Congress
;..The President's letter follows advices Mar. 8
graph appeared: •,! • :
teported the fol¬ will
;/ The report observed that the
provide reasonable protection
A substantial increase in the
in full:.
lowing on the matter: J■ """
$2,500,000,000 volume of Lendagainst; damage to property, real
To the Congress of the United
7 production of cottonseed oil
Lease help was impressive as an
Secretary Knox told a recent and
personal, resulting from en¬ ( would result from the planting
States:
abstract figure, but that when
press conference that tests of a
emy action.
In referring to such / -of the full cotton acreage allotsea otter type ship had proved
I am transmitting herewith to
i it was viewed with relation
coverage the report states: >'
' | ment.- Assuming that the ento need, "what has been done
the Congress a report of the
"very disappointing" - to both
tire increase in production of
There is considerable feeling
falls far short of what is needed
President Roosevelt and him¬ !
first year of Lease-Lend opera¬
i
cottonseed is crushed for oil, a
".to turn the tide toward victory."
self and indicated that the idea |-among -insurance
supervisors
tions. '
■
4
1
•
-v
1
crop of
13,500-,000 bales
that the companies should have j ,(1942
One year ago, in passing the
-of mass production of them had
Though many persons have in¬

report to
said

that

the

.

t

•

-

„

.

.

•*

.

...

i

.;

.

.

ferred that the
:
.

quantity of mil-

turned

to

itary

material

other

countries has been enor¬

over

Lease-Lend
i

small."

the volume has been

Deliveries

.

to

volume

attain

demanded

some

actual

cluded

such

that

of

an

assistance
valuable

But

has

in¬

were

planes, plane parts, tanks, ord¬
nance, ammunition, field communications equipment, trucks,

knees.

petroleum, ships, naval aircraft

as




us

the
to

were

been

dedicate

•

was

that

Now

our

.

our

from

1 power

forced

we

have

manpower

material

to

had

to

well
to the

as

resources

or

her

I-

*:

.

by the Axis treach¬

thrown

'

organized

pool to write this
type of insurance with appro-

result

'would

(

a

in

an

increase

of

»

i

serious

1

will

cheaply that they could

i

England with a^cargo
scrapped.
*

,1

built

so

be sent to
and then

,

j" 250,000,000

•

design was for a ship 270
feet long
of -about 1,500 tons
driven by 16 * gasoline (engines
geared to a vertical shaft, turn¬
ing a six-foot propeller, located
amidships. The ships would be
difficult for submarines to sight
and it was -said they could- be
The

hammered

Axis

and

•America

as
'

-

who

:

pounds' of cottonreported Enthusi¬ I
astically in: September !-on: the |' priate reinsurance through" the j- seed oil over 1941. A 1942 crop
t
Government. Some of the com-- j of 12,100,000 bales would result
possibilities of this type .of ship,
f * in
an
increase- of 156,000,000
sayings tests 1 of a small-scale } panies are also of this opinion.
pounds of cottonseed oil over
I
While this would have been a I
model
indicated- success
was
virtually "ai foregone /conclu¬ ! logical; development' it is now , 1941.- - Increased production of
*
vegetable oils is one of the
I
apparently too late to receive
sion."
*

arms—that the
rulers of Germany and Japan
would
never
stop until they
ery

effec-

items

that

those1

since

has

home to

production

tive arsenal of democracy.

of

then

abandoned.

The Navy

fighting
the
Axis
was
to
strengthen the United States.
We recognized then the lesson

,

inadequate, it

the

defeat

knew

'.strengthen

explained, because of the time
and effort required "to revolu¬
tionize our industrial system"
and

*

are

the

to

We

Axis.

mous^

-

been

the American

people dedicated their material
resources

the report.said, "the. hard
fact is that, in relation .to need,

Act,

1

t
'

1

consideration.-

There

/undoubtedly be the fullest
cooperation between the iiasur-

industryand • the
War
Corporation
and
no
-needless
or
wasteful
duplication will be permitted. The inance

Damage

I

.major goals of the ;1942 Food-

for-Freedom Program.
Information which has since
qome: to us from the Department
of Agriculture, which issued the

i:

I

announcement, indicates

original

-

stitution of insurance is anxious

.

•

to do everything, that it can to
aid in the war effort and seeks
-

no

selfish gain.

. -

■

that

the

pounds
scored

..

"figure

(which

above)

of

we

should

350,000,000 pounds.

250,000,000

under¬

have

have
•

read

TFE COMMERCIAL & FINANCIAL CHRONICLE

Volume 155■-Number 4056

be filled jn this way.

can

Opposes Elimination Of Sugar Crop Payments
As Adversely Affecting Treasury & Consumer
Secretary of Agriculture Wickard informed Senator Byrd (Dern.,
Va.) on March 9 that failure to appropriate funds for 1942 sugar

serious public problems"-and
would not "alleviate the Treasury position."
Mr. Wickard's advices
to the Senator were in response to a letter of March 6 from the
latter "with respect" said Secretary Wickard "to the pending ap¬
propriation of $4?,962,910 for pay-<
ments to sugar
averaged $74,000,000 in the last
beet and sugar
three fiscal years.
Cane producers under the Sugar
Irr apprais-

icrop

payments would "create several

•

Act of

1937, as amended." Secre¬
tary Wickard went on* to say in

'"7;/_ 7//'7; 7///*/-•: :7/7'* ///'

part:

ing the sugar program, one-can¬
not lose sight of the fact-that
•■/its expenditures are covered-by

•.

pound excise tax
on
sugar which not only pays
the proposed expenditures rep¬
all the Costs of the program but
resent in their entirety a drain
/ has, during the past three years*
on
the.; Treasury, .* Constitute
7 shown a substantial net return
'non-essential / spending' " are
to
the - Treasury. In
other
made
"You

j

of the

are

a

opinion that

special

a

spring
mapy

/While
tires J and
other ingenious substitutes

wheels/

primarily for : reducing
production, and provide for un¬
justified payments to large pro-

■]

its

pays -

program

own

■

of

served.'

labor

war

and

materials

effort would

from

the

probably be less

by providing the synthetic rubber
for all essential motor
tion
.

needs

of the

transporta¬

country.

much

the natural

as

he continued.

quantities

product,"

"Even in very large

this .synthetic; rubber

would cost about 30 cents

a

pound,

control legislation/"

sugar

7'we

:

in full accord with your

are

■

objective to eliminate non-essen¬
tial Federal expenditures.
But in
this

instance

that

the

facts

the

elimination

*

are

of

the

*

1942

payments may actually re¬
a
greater net outlay of
Treasury funds, would preclude
continuation of important social
measures; would unquestionably

hundredweight
/

1942

planting in the beet

large

portion

provide

of

which

V; •

/

for

.

:

and inflationary
foreign producers

and much of which would
to

would

large

$60,000,000 to $110,000,000 per
annum
for/foreign producers.
It
would
also permit certain
large firms engaged in the pro¬
duction
of domestic sugar to

.

.

accrue

producers."
Moreover
Mr.
Wickard
added,
any
commitment made to pro¬
ducers with respect to 1942 pay¬
domestic

substantial inments arises out of Congressional / creases in income. For example,
a producer making 100,000 tons
action of late December, 1941 and
of raw sugar would, receive, if
not from any
contracts entered
made
into by the Agriculture Depart¬ 7 the appropriation were
ment.

,

Wickard

met, payments of $720,000.
In
lieu of such payments the in¬
dicated increase in ceiling price
would result in "ah additional

contended

that if conditional payments were
not made

would

under the sugar

be

act "it

under the
Control Act to

necessary,

"

,

Emergency Price
increase
the
ceiling
price
for
sugar at least 80 cents per hun¬
dred-weight,
after
1942
crop
sugar becomes available." ' Secre¬

very

the condition for payment

and

/7/7^:V/-/7, :7.7 777

Secretary

'.

receive

ranging fr6m $1,600,000

"income

$3,000,000, or $880,000 to $2,280,000 in excess of that ob¬
tained under the payment pro¬

to

•

,

the requirements of that
only in the event that revisions" in
purchase
contracts,
under
which
growers
market
meet

gram.

/

to

earlier

1, act
■

not

are

made, -procr

of sugar beets

essors

and sugar--

.

*

their

beets V and

sugar

would

cane

//returns.

exorbitant

enjoy

'*.;.7777/7>

sugar

cane, could be made in a man¬
ner
so as
to give growers the
7 total amount of the ceiling price

' ~

7/v/

J

t

.

no revision in
made an increase

increase. .. Should
contracts

be

in the ceiling price of as much

.

100 pounds would
necessary. Consequently

$1.50

as

be

per

'

there would be a direct increase

!

food

products containing sugar
forces, as well as

on

purchases for our Allies un-

;

der the lend-lease program.,

*

He further said that the Treas¬

:

would also have to pay in¬
creased prices for vast quantities
of essential war materials requir¬

ury

ing the use of industrial alcohol.
In his letter Mr. Wickard also
noted:

.7

.

..

.

,

•

•

.

the excise tax
on
sugar provided for in -• the
Sugar legislation is part of a
comprehensive
program - for
dealing with the problems of
the sugar industry which was
recommended by the President
Furthermore,

.

1

including
the
raw / materials
heeded, the investment required
produce buna rubber is $1,000

produced for

in¬

This rubber has

been

never

cially

but

produced -. commer¬
we have made it for

time
experimentally, and
large samples have been tested in
tires by two of-the large rubber
some

companies.1 There is good
to

reason

hope that whole tires—carcass,

tread and tube—can be made suc¬

cessfully from this synthetic rub¬

ber///These

would not at
be comparable with the buna
or

tires

the

natural

tires

rubber

in use,

but they should give
satisfactory service at speeds up
to at least 35 miles per hour and
now

should last for 10,000 miles.
The
cost of this rubber is estimated to

synthetic

producing facilities, of less

rubber

$15

per

passenger, car

roads,"

automobiles

i

W.

the

S.

of

"Fulfillment

added:

on-:

military

needs is,

of course, the immediate
necessity.
These needs must be
taken care of from the stock pile

United

still

.

available

Nations.

But

/to-- the

aftery, these

provided for the\only
limitation on supply of synthetic
needs

are

rubber

for

civilian

use

shi

is

would

see

how any

on

this

could be

one

food commodity

justified.

continuance

of

the

conditions-

such

In fact, the
tax

would

faith.

result in
of

,

be

act of bad
Repeal of the tax would
a loss 'to the Treasury
collections
which
have

deemed by many an
T

under




rubber

tires

could

be

provided with an estimated in¬
vestment cost of less than the $15
per

car

for plants to make syn¬

thetic rubber.

To the extent that

Farish-said

Mr.

fore

the

outbreak

that
of

Pacific,his company

even

war

consumers'

durable

list....

amendment

The

effective

goods

the

to

becomes

March

amendment

patents have been allowed 1% of
the

of the

cost

basis the
to

rubber.

royalty

about

2VzC

On

would

on

Federal

this

amount

/

offering

industry

to

and

reasonable, royalties

(to be de¬
termined by Government author¬
ities) thereafter."

.

.

of

agency

Army,

Navy,

single

a

to

-

.

tion

urged

was

March 9 by the

on

House Committee

Defense Mi¬

on

gration./ In its report, the

com¬

v

down

payments

r
■

.

in¬

are

to 33V3%

on

refrigerators, washing machines,
: ironers, vacuum cleaners, electrie dishwashers, room unit air
conditioners, sewing machines,
/radios and phonographs, and
musical instruments.

On home

air

conditioning systems and
attic ventilating fans, the down

>

sion and Lend-Lease Administra¬

The

creased from 20%

procure¬

supply
the.
Maritime Commis¬

New
.

and pianos, all of which
still be for 18 months.

may

•

Creation
ment /■

the

of
.

„"/■ pumps,

/

Single Buying Agency
For War Supply Urged

by

Bank

.

all credit subject to the regula¬
tion, except credits for building
modernization, plumbing, furnaces,
water
heaters*
water

the

Government royalty-free licenses
for the duration of the war and

:

The standard maturity is re¬
duced from 18 to 15 months for

;v

"On butyl rubber our company
is

issued

was

Reserve

York:

$15 synthetic

a

rubber tire.

•

payments

.

increased

are

from

15% to 33.i/i%, and on furnaces,
water,
heaters, water ; pumps
and plumbing, from
15% ito

i
:
,

20%. ■-/,

•

/

/-"

•

,

.

2.

'

.

•

,

The; following
articles
are
jad^ed, to the list, with 331/3%
down payment required: bicycles, lawn mowers, silverware
(flatware ' and ' hollow-ware,

('

..

.

.

1

whether

;

photographic

solid

following
/with

v/

floor
tion

and
The

added to the list,
payment re-

are

Clocks,

watches

and

coverings.Persons

who

become
.

plated)
equipment.
or

20% -down

quired:

/

on

subject to the

regula-

and after March 23 be¬

From

had already

contracted for $12,000,000
own responsibility in build¬
ing plants and providing raw ma¬
terial for making synthetic rub¬
ber from petroleum. 7\ • ' :
/ "Prior -to the day Japan at¬

also
;

Z'

:

large

make

it.

construction

-

We

to the list

7 1

they

the
we

r

v
.

t
..

since

to

produce for our Government and
the Canadian Government a total

200,000 short .tons annually
special synthetic rubber and
raw
materials for—buna rubber.

of

over

of

This

/

-

DCB Gets Wire Control
President

,

Roosevelt

issued

an

operate any facility for wire

saying that it
the indus¬
try and regional boards "to see
that every facility under their
jurisdiction operates at maxi¬
mum efficiency."
'•
While commending the ap¬

stands

Pearl

v

dividual

plants,

production chief,

added:

•

cessful

a

virtually

obstacle to effective

by their limited
conversion."
*

conception of

essential

of

conduct

rations to determine the

Act

.of

facilities,
which

were

the

similar

President

to

holds

his

The law

provides for just com¬
pensation to the owners for any
wire facility taken over and oper¬
.

ated.

to

.

-

•

.

which

tract

tend¬

extent

The

radio facilities and which he

and

tractors

.

-

they
to

with

affiliated

a

suc¬

war.

also delegated to the DCB by
order of Dec. 10.
/
.

*

to permit the major corpo¬

of the

Communications

the

over

*

The committee noted

com¬

national

1934, as amended Jan. - 26, 1942
(see issue of Feb. 12, page 679).
The powers,, covering the coun¬
try's
telephone,
telegraph
and

-

*

to

president acted under Section 606

cable

as

March .7 giv¬

security and defense and the

those

planning and mobilization on
the - production front.
In the
past it has - been hampered, not
only, by- its own intrinsic in¬
adequacies, but
also by the
limited production
experience
of the supply branches of the
armed services and particularly

ency

munication

It
insur¬

remains unchanged.

on

ing the Defense Communications

ineffective procurement

mountable

-

has not yet desigautomobile appraisal
guide under Part 3 of the Sup¬
plement.
nated any

•

urged that the
Board allocate

then would be up to

system

.

Governors

.

Board full power to take over and

capacity, all finan¬

,

stated in such automo-

as

bile appraisal guides as may be
designated by the Board, whichever is
lower.
The Board of

gion, instead of dealing with in¬

"The

have..undertaken

value

:

general

a

On .and after April 1 the
credit value-of a used automobile, instead of
being based
solely upon the purchase price,
is to be based upon the purchase price or the average retail

•

^

;

granted

7/

Executive Order

15,000

interval

are

license.

Z

production goals to each impor¬
tant industry and to each re¬

the report

•

Harbor.

/

quote:

The committee

given until June »
Prior to June 1

are

to register.

'

we

pointment of Donald Nelson as

ourselves in the hope that
technical uses could be
for this quantity of syn¬

thetic rubber.

Press

Associated

the

the single war

had under

nearly

then

tons additional

ced by

also

plant

and

by a paid

•War Production

tacked us, and while-natural rub¬
ber
was
still ' being shipped in

to

committees
Government
official, on production and pro¬
curement problems.

headed

of the addition of articles

cause

co-op¬

through joint national,

" regional

be¬

or

Labor-management

eration
;

in the

operation should be in full
thetic rubber from oil can be built swing by the middle of 1943."
Mr. Farish stated that there are
without
diverting
construction
materials and labor from -more available from oil and gas abun¬
essential
products, any demand dant raw materials for all the

plants for the production of syn¬

on

23, except that
the change with respect to used
signed with Gov¬
cars goes into effect on April 1.
ernment approval last December
/ The following summary of the
covering all questions bearing on
provisions
of
the
buna rubber.
Basic buna rubber principal

of supply-

sources,

*

for

System

payment period for
articles, Increases the down
payment and adds new types of

questions

blockaded

be

synthetic -facilities to
speak of capable of producing tire
rubber.":7 ./■;/,• / -7,.: ■■■
-7,
•r*

substitute

to

"

Reserve

most

involved. Patent agreements were

had .any

it is doubt¬
ful whether continuation of the

"It is difficult

•

Federal

shortens the

-

it

advance

v: "In

tax

even

•

for the necessary plants.

ments to producers,

com¬

.

1934; and again in 1937.
In
the absence of conditional pay-

...

developT

.

special

age

designed to

imposed new restrictions
on instalment buying. The Board's
amendment
to
Regulation
W,
dealing with instalment credit,

dustry's principal product. Fewer
cars running means less consump¬
tion of gasoline./
•
: / V.

quantities from the Far
East, domestic affiliates of Stand¬
of natural rubber, plus the- output ard Oil Company (N. J.) had in
of synthetic rubber units included operation about 5,000 tons a year
in
the
program
announced re¬ of synthetic rubber capacity, in*
cently by Secretary of Commerce tended to produce specialty rub¬
Jesse H. Jones, plus, natural pro¬ ber and the raw materials needed
duction

the

_

will spent
provide sufficient rubber to keep on its

than

move

inflationary

March 6

oil in¬

mittee,, which was headed : by
Tolan'
(Dem.,
be about one-half the cost of buna Representative
Col.),' said that "failure to or¬
rubber.
-7 /•/. 7-./
./'• /.' ;' •/
ganize the domestic front of the
;/ "Synthetic rubber for tire pur¬ battle of
production has already
poses has never been and is not been translated into
serious de¬
now
commercial
in
competition feats for our armed forces."
It
with the raw rubber; but it is the
added
that "total
war
requires
quickest and surest way. I know that our vast economic
system be
of filling our military needs and
operated along the organizational
such civilian needs as are deemed
Tines of a single industrial plant."
essential- under "existing
condi¬
Associated
Press
advices had
tions.; But only the Government
the following to say regarding the
can
provide for immediate erec¬
report: 7
/
tion of full-scale facilities, and it
The committee, which .spent
is true that a continuing subsidy J
months
studying problems of
of some- kind will be required to
labor supply and material pro¬
maintain operations.;.
..
//.. // curement, recommended:
"Only the lack of natural rub¬
1. The creation of a special
ber can justify this investment.
.technical./; division
under// the
That is the reason—the only rea¬
civilian/procurement agency to
son—why^the United States did
maintain
an
up-to-date ;comnot have more synthetic rubber ::
plete inventory on industrial
capacity before Pearl Harbor. / In
facilities, the supply of critical
fact, no country in the world out¬
materials
and
the supply
of
side of Germany—which knew in
/ labor.;,/;/' ,7/;//A7'.';/' //■/.;■ //--

found

in

an

vestment of about $700 per ton of

yearly capacity:

of fabricated steel and oth^r
construction
materials
required

'

*

in

Farish,: President
of Standard Oil Company <N. J.)
said on March 10.
Continuing, he

for the armed

;

investment

"An

chases of sugar and
*

,

Made From Petroleum/

America's

many

the

and

from, normal

Butyl Rubber-Synthetic

in cost to the Treasury on pur¬

of the

Gasoline is

•

Furthermore,
if
the
//Congress fails to make .this aptary Wickard added:
/ v C 7 .7;7 7
propriation and the revisions in
■/,
This minimum increase would
the purchase contracts referred
,

for tires.

further

a

ments, the Board of Governors of

hope
rubber

eventually to produce a
so good in quality that it can
pete with the natural rubber

arranged

tires

increased levy
on
consumers /would create an
inflationary windfall of from

bet¬

of less/than, 15. cents a
For large scale operations,

once

sugar
The

purposes, its quality is
ter than natural rubber.
We

rubber

and • alcohol

of

continues.

For

some

In

combat

be

can

made from petroleum gases.

are no patent

000,000 per year if the present • relationship
between the
price

huge

a

/windfall'

by $35,000,000 to $65,-

increase

-

area;
and would necessitate a
tremendous toll from" consumers,
a

ceiling

the

in

$100,000,000 to $180,000,000 per
year.
In' addition, the / cost
/of
industrial
alcohol
would

in

reduce

7

price would increase the annual
consumer
cost
of/ sugar
by

*

crop

sult

V./V.*-

assumption of a 6,000,000-ton
consumption, . art/ increase of from 80c to $1.50; per
On the

product

/ "There

way?

said:

r

Mr. Wickard further stated that

"This

:

On Instalment Credit

synthetic rub¬
obvious," Mr. Farish ob¬

is

normal price for natural

to

Tighten Regulations

pro¬

"Our interest in

a

pound.

war

.'

,

against

■

*

'

■

.

"Synthetic rubber of the buna

type has always cost at least twice
as

-V

*

ber

:

,

essential to other

duction.

in some cases, it would seem
that,economic loss and diversion

not'- only per ton of
yearly capacity—per¬
but -puts haps,
$700,000,000 to $800,000,000
•money into the Treasury
be- for. the entire needs of the coun¬
ducers.
You therefore ask that
Vsides.;, 7;/,/, 77,7;;*''7. //7
this department 'make no con¬
try, military and civilian. 77: /,
With regard to the effect an
tracts
for
these
benefit
pay; "A new type of synthetic rub¬
in, the
sugar
ceiling ber
ments until Congress has. had increase
developed by us; known -as
an
opportunity to review the would have, Secretary Wickard butyl, can be
this

words,

terial

age

r

;

synthetic rubber the nation needs,
without drawing upon raw ma¬

rope

be resorted to with advant¬

tnay

1153

-

.

could

sub-con¬

choose

sub-con-

which they

were

financially. It argued
that
policy
worked
against
bringing small business into the
defense production program and
retarded production.

THE COMMERCIAL & FINANCIAL CHRONICLE

1154

U. S., Britain Create

Small Business Should Get Bank Financing

Henderson Caribbean Commission

To Fill Defense Contracts, Says
Corporation engaged in the

bespeaking the aid of the banks in behalf of small manu¬

in

and

As

$

Board

and

fense

war

f

of adequate

finaricing to fill the
contracts they receive, and this
I believe

the

be

to

Federal

Jan.

on

wrote

I

From

received to these let¬

ters I know that you

do your part.

are going

And we know
that banks are in a position to
assure
an
adequate supply of

proceeds of the con¬
ability to perform
contract within its specified

the

being the more important

time

co¬

a
the

consideration.
•

■

.

The ..objectives

of the Defense
Corp., the Defense Supplies
Corp., the Rubber Reserve Corp.,
the Metals Reserve Co', were also
-

:

matters

"touched

upon

Mr.

by

Henderson in his address.

enterprises work¬
ing under this program. By so
doing you not only help your
bank and your community, but
you take an important part in
our
war
efforts.
It is prefer¬
desirable

and

that

manufacturers

small

the

cre¬

Anglo-American
for

strengthening

economic

the

social

cooperation

be¬

tween the two countries

in all of
the regions adjacent to the Carib¬
bean.
The Commission will con¬

of three American

sist

British

members

and

who

three

"will

con¬

themselves

matters

Co-chairman

of

the

group

are

Charles W. Taussig of New
York,
Caribbean * expert and President
of

the

American

Molasses

Co.j

and

Sir Frank Stockdale of Lon¬
don.;
;;

027,000 compared with 104 for $1,611,000 in the same month of4941.
Retail

$4,232,000
with

719

There

Trade
Total Higher For 1941
The Bureau
of

ment

of Census, Depart¬

Commerce,

reported

on

Tugwell,

Governor

of

Puerto

Rico, and Coert du Bois, Chief of
the
State
Department's
Carib¬

credit

year

a

57 construction

with

000 in

February, 1941.

Commer¬

merely to formulate recommenda¬
tions

and

submit

governments.

them

''

•

addition,

their

to

$552,000

the

President

es¬

Advisory
Committee to undertake-a study
relating to the economic and so¬
cial

last

in

all

situation

sections

of

the

country except the Middle West,
represented by the Chicago,

as

Minneapolis

and

Districts

serve

fewer

failures

1941.

In

Kansas

City

but

than

the

these

ments to

bank

participate.

manufacturers

have

been unable to bid

dition
not

and

of

filing

before

they

were

adequate credit
their - bid.
In

3,345,058

338,272

3,221,855

Exports

contracts
con¬

343,794

consump¬

heretofore

on

because

for

—

tion

the small

of their financial

assured

General imports

Imports

A great number of

because

agree¬

In terms of value,

exports dur¬

ing 1941, including Lend-Lease
shipments, have been exceeded
only during 1929 and the years
from
1916
through
1920.
In
terms of the volume of trade, ex¬

order to speed up war produc¬
tion, War Production Board has,
ports during 1941- exceeded the
within the past few days, issued
volume in any previous year, ac¬
an

order

may

now

whereby
contracts
be negotiated, thus

eliminating
competitive
bid¬
ding. To help in this program,

cording to available index num¬
bers.
Although prices of export
commodities were higher in 1941

previous to the
present war, they did not reach
production, RFC will consider the high level of the 20's, or of
and

to

further

applications

assist

for

in

than

commitments

to

negotiate national defense
war
production
contracts
or
We must

keep in mind that
duction

machinery

always

much pro¬

as

possible
should be producing war mate¬
as

rials.

addition to making loans
manufacturers, you can as¬
sist local enterprises by sug¬
gesting
conversion
of
their
plants to make war supplies
and equipment.
Every plant in
the
country
cannot,
as
we
know, be used in war produc¬
tion but many more than are
now in use can, and should be
placed in this position.
In

to

We

feel

condition of

that
a

the

financial

prospective bor¬

is of less importance in
considering
national
defense
war production loans than it is
in considering regular commer-1
rower




years

agreements

already

in

New

showed' similarly
tions.

would be for the term of 99 years
fixed in those agreements; and

as

that

the

seek

United

sovereignty

colonies

or

are

States

on

does

not

the islands

over

which

the

The

United

the

right to

air

bases

bean

in

Islands

signed

in

which

the

States

the
in

naval

British
an

August,

given

was

establish

Carib¬

agreement

1940,

United

and

under

States

ex¬

changed 50 over-age destroyers
(see issue of Sept. 7, 1940, page
1370).

Partly as a result of increased

prices,

the

showed

a

ing
last

of

value

marked

exports

increase

dur¬

1941, particularly during the
six months of the year.
In

comparison with 1940, exports of
United States merchandise in 1941
increased by 20% in

28%

in

value.

In

quantity and
comparison

Bankruptcies

Reduced

"

Commercial failures in the

sec¬

ond month of the year

showed the
customary decline from January
according to the records of Dun &

-

t

der

the

for

"Food

govern¬
un¬

Freedom"

It sets forth the agri¬

various foods

determined by the Secretary of

to

necessary

requirements

of the United States and its al¬

Mortgage Clinic
Announces Speakers

The

leaders

discussion

at

lies

and

outlines

tion by means

banks

the

the

gests a procedure for the indi¬
vidual

program.

the

American

Bankers

held

be

to

the

at

Waldorf-Astoria, New York City,
will be:
Nadler, Professor of
of

New

York

in

bank

financing

the

It shows how banks

adopt

aggressive agri¬
policy without re¬
credit
standards,
and

can

an

cultural loan

Mar. 26-27,
Marcus

Finance

ac¬

make their part in
effective.
It sug¬

may

clinic

of

plan of

a

of which country

program

forthcoming real estate mortgage

laxing
nationwide series of
meetings of bankers, the object
proposes a

Uni¬

versity, and Assistant Director ''"'of which is
of the Institute of International

to familiarize bank¬

ers

everywhere with the
gram and ways in which

pro¬

Finance, New York City; Rep¬
resentative Albert A. Gore, of
Tennessee; Karl Borders of the
Office of Price Administration;

ftiethod

Francis

ployed throughout the booklet.

Ludemann, Deputy
Superintendent of Banks from
New York; Arthur M. Weimer,
Dean

of

School

of

Business

at

Indiana

University, and a group
leading bankers, it is an¬
nounced by Henry W. Koeneke,
President of the A. B. A., who
of

is

President

of

Bank of Ponca

Okla.

The

■;

Security

City, Ponca City,
V'U y.;,;. •
the

and

the

is

clinic

theme of

a

control,

the

for

program

built around
rent

housing,
war

The

the

in

fourth

The

nation¬

a

Connecticut,

will

York.
be

New Jersey, and

All

the

of

informal

sessions

the

and

ques¬

tions discussed will be related to

problems

banks
the

in

experienced

this

three

States

by

Invitations

area.

mentioned, with

the request that they submit such

questions

they

as

wish

may

to

have discussed.

A.B.A.;, Agricultural
under

chairman,

1941-42

Brazil

be

may

300,000

cotton

bales

estimate

that the

are

for

all

200,000

to

crop

from

under

the

official

of

2,557,000 bales for
1940-41, according to the United
States Department of Agriculture.
This
opinion,
the
Department
stated, is based on unofficial es¬

timates

to

the

Office

of

Foreign
Agricultural
Relations
ranging
from 1,614,000 to 1,753,000 bales
for the coming crop in Sao Paulo
and approximately
100,000 bales
for

the

other

States

of

Southern

Brazil, plus the official

estimate

ment's announcement adds:

Exports
from

of

Aug.

1,

Brazilian

1941

to

and

compared

bales

in

1940-41.
and

the

with

same

Shipments

China

of

Trust

and

Co.,

Thompson,

A.

National

the

Bank

N,

Y.,
special Food for Freedom

a

Committee

Norwich,

chairman-;

the

under

ship of C. W. Bailey, President of
the First National Bank at Clarks-

ville,:Tenn.

i''•'>.

•/\

■■s

•

.

l.

Speakers For A. I. B.
Convention In June
Henry
of

the

W.

ciation;

President

Koeneke,

American

Bankers

Asso¬

Wiegman,
President
of
Midland
College,
Fremont, Neb.; Francis Marion
Law, President of the First Na¬
tional Bank, Houston, Tex., and
Keehn W. Berry, President of the
Whitney National Bank, New Or¬
leans, will be the featured speak¬
ers at the general sessions of the
Dr.

Fred

C.

the

of

convention

Amer¬

Banking in New
Orleans, June 8 to 11, it is an¬
nounced by
George T. Newell,

A.I.B.

President,

President
Trust

who

is

cotton

31,

519,000

598,000
period of
to
Japan

Vice-

Manufacturers

the

of

Co., New York City.

Delegates to the convention at¬
tending the first general session,
which will be held June 9, will
hear an address of welcome by
Mr.

Berry,

President of

is

who

Clearing House

the New Orleans

Association, and speeches by Mr.
Koeneke and Dr. Wiegman.
An¬
nual

reports of the Institute's na¬
officers
and
committee

tional

chairmen

this

at

also

will

session

speeches

on

be

and

presented

nominating

behalf of candidates

for the Institute's national

Jan.

1942 amounted to about

bales

Otis

President

ican Institute of

Less Brazil Cotton Seen
total

Commission
leadership
of
its

the

annual

Present indications

em¬

According to the announcement,
project was developed by the

by' the association this year and
is planned to serve the bankers
New

is

treatment

the

wide series of such meetings held

of

of

con¬

ditions, Mr. Koeneke states,
is

the

cooperate with it.
question
and
answer
may

mortgage

business of banks under

clinic

banks

J.

$9,631,000
compared of 510,000 bales for the crop in
Brazil.
The
$9,916,000 in January. Northern
Depart¬

with 962 for

working

a

ing the operation of banks

ABA

In February

1938, the last pre-war year, February failures showed an even
more
marked decline from the
they showed an increase in quan¬
tity of 47% and in value of 64%. corresponding month of 1941 when
1,129 organizations failed for $13,Imports
483,000.
All of the commercial and in¬
Total imports in 1941 exceeded
those
for
the
peak year 1937, dustrial groups into which the
both in value and in volume, and failures are divided, except the
exceeded 1929, the record year, in commercial
service
division,
volume
although not in value. shared the downward trend from
In comparison with 1940, imports January
to
February, and all,
in 1941 were 19% larger in quan¬ without exception, participated in
the
decline
from
last year. Manu¬
tity and 27% larger in value.
They were 42 and 65% larger, re¬ facturing insolvencies dropped to
spectively, in quantity and value 141 involving $2,525,000 liabilities
from'182 involving $5,983,000 in
than in the pre-war year 1938. *
with

is

booklet

meet the wartime

Bradstreet.

916 firms

The

Association
■'",*" vV.;

manual of information

Agriculture to be

failed

for

follows:

The booklet

-

the

by

1

bases

located."

.as

marked reduc¬

have been sent to all the banks in

States

described

Most other Districts

granted

United

is

York District

the

the

program.

was presented at
association's
recent
credit

clinic in New York.

February,

reached;
that the acquisitipn of the bases
to

de¬

they

Program,"

the

cultural goals for

will have

World War I.

from manufacturers who desire

subcontracts.

in

war

the

the

program.

needs,

for

in

part

alone failures dropped to 297 from

islands, "intended to
improve the standards of living.

—-—

their

dom

had

.

with

36-page

banks

booklet, entitled "How Banks

399 last year.

problems of the large num¬
in the British and

—

the

to

show banks how

to

take

can

Federal Reserve Districts. All Re¬

American

This group, which also

booklet mailed

.

better

prevailed

of peoples

ber

a

in

program

Can Assist in the Food for Free¬

-.■/x.y:.
solvency

year.
The

Association,

Caribbean

a

"Food for

Freedom"

The

The Commission is empowered

,

give their full support to the

Government's wartime

from

involving

Support

tion has asked the nation's banks
to

signed

66

J

The American Bankers Associa¬

cial service bankruptcies declined
to 59 involving $927,000 liabilities

bean Office.

Mar. 3 that the value of exports
only power
to
recommend,
is
of merchandise from the United
for
made
up
of
Mr.
Taussig
as
in
December, 1941, was
it is not the policy of RFC to States
Chairman, Mr. Tugwell, Martin
compete with banks or other approximately $652,000,000, bring¬ Travieso, Justice of the Puerto
ing the total value for the year to
lending institutions.
Rican
Supreme
Court; ' Judge
$5,146,000,000. The value of im¬ William
It is
our
H. Hastie, Civilian Aide
opinion that you
ports in December was $344,000,can
to the Secretary of War, and Carl
safely make these loans
000
and the total for the year
either in whole or in part.
Robins of California, former Pres¬
Our
$3,345,000,000.
ident of the Commodity Credit
experience with them has been
The release of these figures was
satisfactory.
We have found
Corporation.
in accordance with the previouslythat the method of accepting as
In
issuing the announcement
announced policy of reporting the
collateral or part collateral an
the White House took occasion to
total values of exports and im¬
make
known
that
President
assignment under the Assign¬
ports
while
withholding
from Roosevelt
ment of Claims Act of 1940, of
had denied as "entirely
publication all detailed foreign untrue"
moneys due from the contract
reports that the Govern¬
trade information by commodity
to be financed, when combined
ment was considering requesting
or
by country of origin or des¬
with
the
so-called
Britain
for
"an indefinite prolong¬
"budget
tination.
basis" disbursement of the loan,
ation of the 99-year lease granted
Summary figures on exports
is a practicable way to handle
by the British Government for
and imports, in thousands of dol¬
it.
the bases acquired in certain of
If, however, these enter¬
lars, are as follows:
the British colonies in the West¬
prises
are
unable
to
obtain
Dec.,
Year
ern
credit locally for this purpose,
Hemisphere."
The President
1941
1941
is said to have asserted that the
then only will RFC consider Exports, including rer
their applications either for di¬
exports
651,555
5,145,786 United States has "no intention
Exports, United States
of requesting any modification of
rect
loans
or
in
conjunction
5.018,531
merchandise
635,179
their

$4,501,000

were

Gets ABA

iu.

compared

$920,000 liabilities
in comparison with 58 with $836,-

customary banking channels to
finance

with

"Food For Freedom"

with

589

to

liabilities

ago.

failures

fell

President Roosevelt also placed
the Commission Rexford G.

In

U.S. Foreign

casualties

on

tablished

these

use

the

February, 1941,In the wholesale
group"only-70 firms failed for $!,'--"

Plant

credit to local

able

an

of

Commission

of

purpose

the

tract,

With

followed

Jan.' 12.

on

responses

their

asked

the

from

all banks

to

1, 1942, regarding this

operation.

to

on

earning record of the manufac¬
is so important in cases
where
we
are * to
be repaid

Administrator

Loan

and

letter

the contract.
believe that the past

working

.

Jesse Jones

matter

we

agree¬

an

turer

banks, referred to in my earlier
remarks.

is

obtain

to

We do not

of

functions

important

he

of

one

of

9

primarily with
pertaining to labor, agri¬
housing health, educa¬
ment on the part of the appli- culture,
cant's creditors that they will tion, social welfare, finance, eco¬
nomics
and
related
subjects."
not force him to the wall while

can

what

ation

Mar.

on

Caribbean

cern

is.v questionable,

applicant

endeavor

do very much along
this line they must be assured

is

capital

complete the contract.. Where
the financial condition of the
to

production
needs among the smaller busi¬
ness enterprises.
However, be¬
fore the majority of these small
plants

manufacturer

la

have sufficient working

plan to spread orders for de¬

-a

Nevertheless, we
should

loans.

cial

believe

formulated

has

London

and

'

know, the War Pro-

you

luction

si¬

made

was

discussed by Charles multaneously in Washington and

war program were

Henderson, Chairman of the RFC before the recent credit clinic
of the American Bankers Association in New York Mar. 6.
The
needs of small business were likewise alluded to by Mr. Henderson,

B.

facturers he said:

Announcement

Reconstruction Finance

The activities of the subsidiaries of the

r

Thursday, March 19, 1942

for

the

ensuing

year

offices

will

be

given.
The

the

second

convention

feature

the

general session of
on

June

11

will

inauguration of new

amounted
to only
A.I.B. officers and executive coun¬
65,000
bales
compared
with
cil members, and an address by
278,000 bales during the same
period of 1940-41. - On the other Mr. Law, who is a past President
hand, shipments to the United of the,American Bankers Asso¬
Kingdom and Canada amounted
ciation and-President of the board
to about 370,000 bales compared^
with about 210,000 bales during of directors of Texas Agricultural
and Mechanical College. - the first half of 1940-41.

THE COMMERCIAL & FINANCIAL CHRONICLE

Volume 155- Number 4056

FDR Warns Inflation

„

gives

Advancing Prices

:

the

to

to get in -some" deadly
That gives an oppor¬

blows.

In

opportunity

an

..

enemy

enemy
malicious words.

the nation

prices keep
have

on

going up

inflation

of

a

shall

we

kind."
Speaking over a
nation-wide radio hook-up to a

series of community dinners cele¬
brating the ninth anniversary of

farm

alike—into
velt

r u

later

i

■

that

added

inflation

the

and

ness

"Government's
lance

is

farmer

men

unflagging

■i.

"to

profiteering and unfair
returns, alike, for services and for
goods.
/'
At

the

start

of

his

brief

the

that

certain

"are not

people

now,

ad¬

have

complacent," but, on the
contrary, "are keenly aware" of
the job they have to do.
He
that

said

increased

to the various groups

comes

been

the

"fairly

kept

well

in

ance" and that the national
is

ord

of

and

farmers

getting

in¬

have
bal¬

preceded

was

on

think

nine

back

•

■

•

been

has

There

•

a

consider-

able amount of discussion lately

;

people.

pretty well.

them

write

them send

?

sort

or

to

me

me.

?

no

lot

of

better

a

one.

on.

would; ..in-

word"1 that: "in¬

What

we

really

mean

even

better off than

individuals

as

we were
or

be¬

heads of

comes

It calls for mutual good

group.

will

and

a

willingness to be¬

lieve in the other fellow's good
faith.
It calls for unflagging

they are whole-heartedly
entirely committed to ac¬
tion.
Now, as a decade ago,
they are facing up to the job
they have to do, and they pro¬
pose to see to it that the job
and

Never before in our history has
there been as much need for

unstinting service to the
try.

<

preparing

possible speed to take

Hard,

their places on the battlefronts.
Workers in the mills and mines

•

are

bitter

laboring long hours, under

weapons

coun-

•

►

•

to produce the food which,, like
the tanks and planes, is abso-

,

4

lutely indispensable to victory,
The. members of each of these

i
'

-

explaining why cooperation
is necessary, Mr. Nelson said "we
either work together for the Com¬

We and

trial to¬
day before the American public.
This is our last chance to show
that

a

you

free

are

on

building, up 38%;
building, up 62%,

sidential

from

1902

of Plant
of

technologist

crop
1918 in

rer

President Opposed To

to

the Bureau

Industry and the Bureau

Markets, and

as

Chief of the

Grain futures Administration and
its successor, the

Commodity Ex¬
change Administration, from 1925
to 1940.
He resigned as Chief of
President
Roosevelt
asserted the Bureau in 1940 and, as As¬
that he is not in favor of pro¬ sociate Chief, devoted himself to
Old-time
posals for a merger of the Army special research work.
and Navy or for creation of a associates in the Department of
on
Feb. 28 joined
supreme command and declared Agriculture
that the services appeared to be employees of the Commodity Ex¬
working
together
pretty
well change Administration in present¬
under, the present system. Speak¬ ing Dr. Duvel with a watch and

Merging Army & Navy

ing

his

at

the

conference

press

a

leather-bound

token

of

testimonial

in

.

his

long and distin¬
in the Depart¬
of the bill introduced' earlier in guished service
ment.
As
to
his
the day by Senator Clark (Dem.,
activities, the
Department's
announcement
said:
Mo.) for unification of the War
President "said he had not heard

economy

sur¬

can

and

Navy Departments into a
Department of National Defense,
said

but

that

it

made

little

dif¬

ference whether the armed forces
under

were

vive and be strong. If free men
several.
in
America
can't
use
the

department

one

or

He then added that

,

are now

they
working well together.

freedom gives
At the same time, the President
job than
the slaves of our enemies, then dismissed; the possibility of estab¬
lishing a supreme command.
It
freedom dies and that, may I
was reported that Senator Chand¬
add, includes the freedom of
ler (Dem., Ky.) had said that the
; enterprise
to which ' we are
Administration
was
considering
looking to deliver these goods.
such a step, but Mr. Roosevelt
In calling for more and more
asked what the term "supreme
planes, tanks, ships and guns to command" meant, declaring that
carry the fight directly to
the most of the people who talked
enemy, Mr. Nelson said he "be¬ or wrote about the
subject were
lieves the necessity for having
unable to define its meaning.
those weapons now transcends all
other matters in the public mind,
either political or economic."
He
continued:
^
i-J.If,, therefore, " we r ar e to
-: achieve
victory for the ideals
we free men have always loved,
Members ' of
the
New
York
then we on the production lines
Stock
Exchange
on
Mar.
12
must abandon every other con¬
adopted the proposed amendment
sideration
except
increasing to its commission law increasing
production and increasing
it the
rates
approximately
25%
every day.
If we fail in that above the
present ones. The new
;
we shall burn :ih the flames of
schedule, which had been ap¬
a public wrath so intense that
proved by the Board of Gover¬
in its heat it. might consume the
nors on Feb. 26 and submitted to
very standards we have set for the
membership for consideration,
free men to live by.
went into effect on transactions
strength

which

to turn in a far better

NYSE Members Approve

..

Commission Rate Rise

'

-

•

Mr. Nelson further said that "if

all

equipment now involved
in war production were used 24
hours a day, seven days a week,
we would practically
double the
man-hours being put into military
production." In saying that pro¬
duction could be substantially in¬
creased by greater use of existing
machinery, - Mr. Nelson cited as
examples plants which operate
our

five and five-and-one-half days a

made

beginning Mai. 16.

stated in

As was
issue of Mar, 5, page

our

929, wherein we noted the ap¬
proval of the Governors, gener¬

under

flat increase of 1 cent a
stocks selling between
and $10 is called for
the
new
schedule.
On

stocks

selling

ally,

a

share

50

on

cents

between

$10

and

$90, the commissions are pro¬
gressively increased at the rate of
V\ of 1% of the selling price, At
^

week,

the

Maritime

Commission

inte¬

grated into a unified supply sys¬
tem" with the WPB.

we can

keep

of

in

us

the

.

United Nations-

President Roosevelt

Acceleration

signed

<

on

of

the

war. con¬

struction program resulted

in

an

increased volume of building and

contracts
in
the
month of February, according to
engineering

a

war.

Signs Cadet School Bill

March 4

for

Such

commissions

five

less

bonds

on

more

or

five

bonds.

orders for
remain un¬

statement released on March 14

Hughes Named Chairman
Dr.

Joseph E. Hughes, President
of the Washington Irving Trust
Co., of Tarrytown, N. Y., has been
elected Chairman of the Board of
Trustees of the New York State
Bankers
Retirement
System, it

near Wapakoneta, Ohio,
1873,
Doctor
Duvel was
graduated from Ohio State Uni¬
versity in 1898 and received his.
Doctor Of Science degree at the
University of Michigan in 1902. •
Shortly afterward he went to

work

in

the

Bureau

of

Plant

Industry and devised and de¬
veloped an instrument for test¬
ing the moisture content of
grain which became standard
throughout the country.
From
1908

1918

to

guided

the

Duvel

Doctor

grain

important

standardization

studies

of

the

Department.
In

August, 1918, he joined the
U. S. Grain Corp.,

staff of the

agency of
the
Administration.

wartime

Food

In 1920 he be¬

of a grain firm
Winnipeg, Canada/where he

came a member

in

in close touch with the op¬

was

eration

of

the

Canadian grain

futures market.
In

in which the
was passed,
providing regulation of Ameri¬
can
grain markets, Dr. Duvel
returned to the Department of
Agriculture
to
participate
in
1922, the

year

Grain Futures Act

of that Act.

the administration

In 1925 he became Chief of the
Grain

Futures

While

the

Administration.

under the
original Act, was primarily a
fact-finding agency with lim¬
ited regulatory powers, under
Dr. Duvel's leadership its in¬
vestigations and research work
Bureau,

laid the basis for the Commod¬

ity

Exchange Act amendments

of 1936 which broadly extended
Federal regulation
of futures

trading and included other ag¬
ricultural commodities in addi¬
tion to
For

grain.

a

part of 1918, Dr. Duvel's

services

were

loaned

to

the

Australian Government to

help
in
developing wartime (grain
production
in
the
semi-arid
areas

of New South Wales.

remained

there

months, acquiring

He

several

for

keen inter¬
of Australia.
his work in
Australian agriculture, in 1938
he was elected an honorary life
member and presented with a
a

est in the progress
In recognition of

cultural

Wales,
holds

Society of New South
an

President

Co.,

of

the

Endicott

was named
Harold J. Mar¬

Endicott,^ who

Vice-Chairman.

Trust

in

the

which

organization

position of

a

,

by. the F. W. Dodge Corporation: wj$sr announced on March 12 at
Total
contracts
awarded
last the System's headquarters in the
month, in the 37 Eastern. States Federal Reserve Bank building.
amounted to $433,557,000, com¬ He succeeded David C. Warner

resolution authorizing pared fwith $316,846,000 in Jan-?
Commission to ac¬ -uary and $270,373,000 in February
quire,. as a site for a permanent 1941.
The
accumulated
dollar
Atlantic
Coast Cadet Training volume of contracts let during
a

the Maritime

Born

in

gold medal by the Royal; Agri¬

Volume Last Month

our eyes,

that matters

winning the

than

ders

Increased Construction

on

thoughts and our efforts
directed toward the only thing
now for every one

the war

their time and energy in
the work of civilian defense.
And out in the country, farmers are straining eevry effort

difficult days

ing

•

In

How hard and how

our

and equipment with¬

which

.

changed.

they will be depends

how well

cannot be
won.
Men and women in thou¬
sands of communities are givout

trying,

ahead.

are

great pressure, to turn out the
:

no

,

'

with all

Last month's contracts, in com¬ standardization and Federal regu¬
lation of futures trading, retired
parison with - those of February,
on
Feb, 28 after more than 36
1941, showed the folio wing, dollar

those closed on Sundays
$90 a share and above, a mini¬
and the percentage of plant ca¬
mum
commission of 35 cents a
pacity used by second and third share will be charged.
These
shifts.
In
order
to
get much non-member rates
apply both to
greater plant utilization, he ex¬ 100-share-unit and 10-share-unit
So, on this ninth anniversary
of the founding of the national plained that the WPB's produc¬ stocks and to round-lot and oddtion drive is one step and that
farm program, we can all relot orders.
Provisions have also
another "involves the reorgan¬
dedicate ourselves to the spirit
been made to increase the nonized,
hard-hitting
procurement
with which this Common effort
member
and
member
commis¬
by the farmers came to birth. set-up of the Army, the Navy and sions on bonds in the case of or¬

vigilance and effective action
by the Government to prevent
profiteering and unfair returns,
alike, for services and for goods.

and

are

some

It calls for co-operation and re¬
straint > on the part of every

of the situation
they find themselves,

Americans

wish

fought with bullets or with
bombs, but it is equally vital.

of one
They talk to

is done.

alike—

This fight against inflation is

aware

in which

workers

not

pretty frankly.
If there is
one single thing of which I am
certain, it is that the American
people are not now and have
not been, complacent.
:
On
the contrary,
they are
keenly

and

close to
being true that that which goes
up has to come down.

me

'

war

one—city work¬

farm

familities, and it

messages

another.

greatly in¬

debt, hamper the
victory, and inevitably

every

and

fore

News¬

A lot of
A

be

-

though we may not
realize it at the moment, it is
not
a
good
thing
for
the
country to upset all the old
standards if the cost of living
goes up through the roof and
wages go up ,through the roof.
Actually, in. such a case, we are

I think I know the American

people

would

will

national

is that

editors and commentators
have been telling us that the
American people are complac¬
ent—that they are apathetic.

•

the cost of* the

flation."

paper
.

crease

vent

alleged complacency

the

about

of the American

management,: labor and
Government.
He said that there

is

i

half of the things in which they
believe.-; ;■
1

/

nation

entire

That

I

'

:

successful offensive against

a

among

we

into ruinous deflation later

over

years

in their- owh behalf and in be-

■

that

me

hurt.

plunge

without
coming to the conclusion that the
most significant single fact in
recent American history is the
ability of the American people
to face a tough situation and to
take orderly and united action

•

the

ers

can

one

last

to

seems

drive for

The text of the President's ad¬
No

It

the

dress follows:

the

they

than
'\''y

But, in general, the increase
the
different
groups
has

that

/the radio program by Vice-Pres¬
ident Wallace and Secretary of
Agriculture Wickard.

-

'

v

But; if all prices keep on
going up, we shall have infla¬
tion of a very dangerous kind—
we shall have such a steep rise
in prices and the cost of living

rec¬

less than 10%

The President

Dr.

residential

to

.

more

'

ought.

"pretty good" when 90%
population is cooperating
"is chiseling."

the

Dr. J. \V. T; Duvel Retires

,

not been,

also

10

the de¬

a

ought
to feel proud of the undoubted
fact that we are getting co¬
operations
and
a
reasonably
fair balance among 90% of our
population and that if less than
10% of the population is chis¬
eling, we still have a pretty
good national record.

American

and

few

a

and

*

<

dress, the President said that he
was

Mar.

mon good or we shall
inevitably
kept fairly well in bal¬ share the common evil of defeat."
ance, and there has been only
The
War
Production
Board
a
moderate rise in the cost of
Chairman had this to say to labor
living in city and country.
and management:
;

prevent

>

on

keen

vigi¬

action

or

few

to

the

and

on

one group to blame for the
few business slack in production but added
workers, or a that it simply means "we have to
are
demanding work, harder."
'vV1

instances where

not

effective

and

average are substantially
increased.
Of course, there are

the

while

fight
fought
with bullets, "it is equally vital"
and calls for cooperation and re¬
straint on the part of labor, busi¬
against

ac¬

the

Roose¬

Mr.

farmer,

incomes of all three groups on

deflation

n o u s

on."

Chief

treacherous the enemy. In the second of four
voice, is using the war to grab radio addresses on the war
pro¬
all he can..I
iv;'
;•^, duction effort, Mr. Nelson again
Now it happens that, - as a stressed the basic importance of
result of the war program, the thoroughly
cooperative
action

debt, hamper the drive for vic¬
tory, and inevitably plunge every¬
one—city workers and farmers
deflation

Production

higher

And the
to
this

profits.
cording

pro¬

gram, the President warned that
this will "greatly increase the
cost of the war and the national

full

fensive
long enough," but ex¬
'wages. plained that the attack must be¬
volume
increases:
heavy engi¬ years' service, in the Department
Business, it says, is gouging the gin at home on the
production neering construction, up 6% ; non¬ of Agriculture. Dr, Duvel served
country
with
unconscionable line before the war can be carried
as botanist arid
for

demands

gerous

.the * Administration's

War

with strikes and slowdowns and

dan¬

very

into

..

Must Be First: Nelson

Labor, says the evil whisper, M. Nelson declared
is sabotaging the war program that
"we have been

Mar. 9 that "if all

on

gotten

Contract •* totals, for 'these

J. W, T. Duvel, Associate
averaged over $500,000,000 a month during 1941,* and this Chief ;of ;the
Commodity" Ex¬
year's program is expected to top change Administration and wide¬
Donald that of last year.
ly known for his work in grain

.

President Roosevelt declared to

.

scarcely

stride."
37 states

to spread

tunity to,the

has

Production Offensive

1155

leadership

agriculture

of

that

country.
The

many *

publications'

of

which Dr. Duvel is the author
include

numerous

dealing with; grain
tion and futures

bulletins

standardiza¬

trading.

Company, continues

as

■

the Sys¬

shall, Secretary of the New York tem's Treasurer, and Albert L.
various groups know the extent School, property at Kings .Point, the first two months of this, year State Bankers Association, has be*: Muench,
Assistant-Secretary: of
-to- which.they themselves. are Great Neck, L. I.r opposite. Fort is 30% greater than the figure for come Secretary of the Retirement the
New
York
State
Bankers
Schuyler,
The
House
System,
succeeding
W.
Gordon
the
passed -the
corresponding period of 1941 i
responding..
But they do not
Association, continues as Assist¬
i Brown.
Adrian
*M.*
measure on Jan. 15 and the Sen¬
Massie,
Vicein
- spite
of this • substantial - in¬
always, know- what -is - being
•
.
.
..
done by the others.
crease,
the •. augmented; program President. of the New York Trust ant-Secretary.
And that ate on Feb.- 26.




.

-

.

■

»

.

THE COMMERCIAL & FINANCIAL CHRONICLE

1156

f. Industrial unemployment .has „*• naturally.;- increased the; most
id Michigan" and * nlijg®o^ifig^fees^ih"':ti^e rsectioiiB where" the

Dec; Statistics For Electric LL & Pr. Industry

:

automobile plants and.

-

Electrical research statistics for the month of December, .1941,

ing establishments

-

and

1940, covering 100% of the electric light and power industry;
released on March 10 by the Edison Electric Institute, follow:

as

SOURCE

AND

DISPOSAL OF ENERGY

-

By luei burning plants_____.

By water power plants
Total generation

11,147,565,000
4,491,459,000

4,398,558,000

15,639,024,000

13,455,935,000

85,342,000

79,404,000

281,140,000
356,774,000

'535,418,000

—33,4

:+17.5
+ 19.8

"+17.1

Add—Net imports over intern, boundaries

Less—Company

use

—

Less—Energy used by producer„__——_

15,086,452,000

Losses and unaccounted for.

2,333,299,000

12,842,218,000
1,947,200,000

12,753,153,000

10,895,018,000

energy

Sales

to

,'

■

/-

customers--.

ultimate

••;

CLASSIFICATION OF

■

-f
(distinct rural rates).

Commercial

w'

——

'

•

•

y.

"•

]

•"

+

+

4.3

Small

light and
Large light and

power—

Total

—

ultimate
''

)

——

+

0.8

customers—————

'

'

**

115,123

•

•

31,607,332

30,191,001

4.7

+

tion for hired

Kilowatt-Hour Sales—•

Residential
Rural

domestic—^

or

1941

-

—

(distinct rural rates)
or industrial:

<

1940

•

2,392,699,900

7.7

147,892,000

2,222,268,000
108,912,000

+ 35.8

2,188,823,000

2,033,724,000

+

6,866,867,000
223,620,000
301,081,000

5,448,145,000
216,601,000

+ 26.0

248,045,000

+ 21.4

■;

+

0.1

-

+

9.7

—-

:

+

light and power——————
Large light and •power—-.
;
Street and highway lighting
Other, public authorities
Railways and railroads:
/
:
Street and interurban railways——
Electrified steam railroads—
—

_

—

———

7.6
-

3.2

+

368,518,000
■

200,343,000

———'

Total to ultimate customers.:

63,310,000
■

«■

,

12,753,153,000

368,012,000
182,571,000
66,740,000

10,895,018,000

2

5.i/

—

$239,460,500

most

1' +17.1

_

$219,913,100

(Revised Series)

i+ 8.9*

"

—-12 Months Ended Dec. 31

,

Average Customer Data—
Average

annual

1941

customer

1940

986

bill.—

(cents).

,./■/■

*

,

952

+3 6

*

+06

v

'

3.73

„

*By courtesy of the Federal Power Commission,

>.

-

% Change

'$36.56

*

$36.78

Revenue per kilowatt-hour
1

3.84

/

Currency, announced

on

March? 13.

plained:? *'

His

announcement

2 9

Total disbursements, including offsets allowed,

an

during

the

Data

during the month

also

to depositors

are

as

follows:

/•/

...

*

■'

■•■'Total '

Per Cent
Dividends

Capital

Declared

Stock at

to Creditors

Name and Location of Bank-

Industrial Savings Rank,
ington, ,D. C,*

County
Joliet,, 111.

•

National

Bank

of

Niles

First

Bank

of

$542,125

7-15-31

2,519,289

72.71

1.055.465

U08.19

100,000

264,142

•*103.27

82,000

—

National

$50,000

v

200,000

___

10-26-33

Pleasant

Point Pleasant,

1.910.466

$71.39

150,000

866,604

56.1

200,000

Bank,

National

W. Va.£

9-21-31

54,755,47!

10-23-31

5,912,206

89.08

750,000

3-8-39

402,755

94.1

30,000

t**111.521.

:

938

20,805

20,507

806

1,950

2,798
2,269

969.

•>

employment, J WPA, -; COC, and
f f
(out-of-school).2,904

7,553

:

2o;oi7

/

805

2,238

of the bill creating an

1,039

12,585

12,888

7,785
12,791
1,137

1,161

.*'■

1,171

•Not included in

employment, total..,

p

1,502

,

1,463

of

more

3,000,000

Anthracite

Preliminary.

plants

defense

*

•
..

war

ef¬

was

ab-

••

-

This section, he

said,

essential inasmuch' as
"one of the main difficulties of

solutely

Shipments-February 1942

business is adequate fi¬
nancing to get ready to handle

4

f

contracts."

war

;

•

•

—

•-.+

719,019

Delaware & Hudson RR.

.Erie

Corp.
—

RR.

—

Ontario

& Western

Ry.

—

,

778,048

738,117

706,919

384,343
476,734
370,441
,399,617
334,751 ;
77,934

334,460
441,586
319,204 ;
414,047
314,954
78,452

381,190
539,937
334,451
395,556
317,852
90,886

226,940

191,965

191,552

2l4i275

' 3,969,257

3,751,707

3,808,336

4,210,156

-++

■Central RR. of New Jersey-.i^-„-—-/

Lehigh & New England RR.
;

Total

<,

4

;

than

rather

Chairman

WPB

413,710
574,782
377,128
422,816
350,721
98,050

having a new devision ;set ;up
by Congress;
:
(2) Defining of the duties
with no freezing of methods,

.:

and

-

.

•'

,

(3) Making it the duty of the
chairman to incorporate small1

Unemployment

i

than

in

plants

Bill Permitting Small Business To
Participate In War Production Completed

Completion of the drafting of a bill designed to permit small
business to participate - in. war prpduction was, effected on March 6
by

a

subcommittee- of the Senate (Banking

and; Currency Committee,

and approved" by

the

Senate Small Business-

mittee arid

other

was'; amended

Subcommittee

by
to

Cbm-^

—

committeemen, The committee,
the

was

revisions. made

advised
the

the Banking
guard against acceptable, to .Mr. Nelson,
ciated Press accounts

—
that

measure

Asso¬

from Wash¬
division of Mr, Nelson's au¬
thority as Chief of War .Produc¬ ington,'March 6, from which .we
Estimates of the number of persons laid off in
January be- tion.
Reference to the bill " by quote; added:
cause of plant'conversion or 1 curtailment growing out of war
; '
The measure * would
create
Senator Murray and one; by Con¬
production needs range from 300,000 to 500,000.
According to a gressman Sabath,' was made , in
under the WPB a special deputy
sample survey by the WPA, the number.of persons, who held jobs these columns
Feb.-26, page .857;
charged with the full responsi¬
but who were not actually at work on them increased from 500,000
bility for the relationship of
Testifying before the Senate Sub¬
in December to 1,000,000 in January.
Most of this increase is committee
small business to the all-out
on
March
4,
Mr.
attributed to the impact of conversion.
war
Nelson
had
indicated
that
he
production
effort.
He
Another indicator of the effect of the conversion
would be accountable only to
program feared that the Murray bill as
upon employment is the fact that manufacturing employment de¬ originally drawn might, by creat¬
Mr. Nelson.
creased three times as much in January, 1942, as it did in Jan¬ ing a
The bill also would establish
special division of small
a
uary, 1941.
Only the fact that workers are continually being business under the WPB, divide
$100,000,000
Treasury - fi¬
absorbed in "going" war plants and industries has
nanced
smaller
war
plants
prevented the his authority and "unfortunately
employment drop from being -substantially greater.
interfere" with war production.
corporation to help small busiany

'

production: to
capacity, but
the doling

not to make his duty

out
.

war

maximum

their

Draft Of

,

Economics of The' Conference' Board,
Despite this in¬
only about half as many persons were idle as in January,
1941, when the number of Unemployed totaled^8,026,000, More than
10,000,000 were unemployed in January, 1940, says the Board, in
Its advices of March 13, which further said:•
crease,,,

.

From
its
Washington bureau
Shipments of Anthracite for the month of February 1942, as re¬
ported to the Anthracite Institute, amounted to 3,969,257 net tons. March 4 the New York "Journal
This is an increase, as compared with shipments during the preceding of Commerce" indicated that Mr.
month, of January, of 217,550 net tons, or 5.8%, and when compared Nelson advocated inclusion of the
with February 1941, shows an increase of 160,921 net tons, or 4.2%. following three provisions in the
4Shipments by originating carriers (in net tons) were reported as bill under discussion: ;
'follows:
*'■'/•"' •;
' ■ ■/'
■ ''••••.
(1) Vesting of responsiblity
of handling the small business
Month of—
"
Feb. 1942
Jan. 1942
FOb. 1941
Jan, 1941
Reading Co, .:
•«'
979,478
918,922849,993
980,626
problem in the hands of the

by receiver, of principal
in full paid to creditors.*-

largest number since April, 1941,* according to the Division of

Industrial

smaller

firms to convert to the

1,373

.

j.

section
RFC fi¬

corporation to assist the smaller
fort.

2,583

Donald M. Nelson, Chairman of . the War Produc¬
1,000,000. in the number'of unem¬
tion Board, - The proposed legislation,- based on a bill originally
ployed in January brought the total for that, month * to 4,150,000,
proposed by Chairman James E, Murray, of Montana (Democrat),- of
the
increase

.

Mr. Nelson approved a

v

-

nanced

1,041

\

,..

2,330
2,183

•Emergency
NYA

/1

3

said.

802

13^658

13,821
2,602

;r:

"The first is my problem and
the second it not," Mr. Nelson

201

8,408

4

eluded.■

,

8,940

1,042
8,047

■

10,947
"1,024

4,150
50.872

202

12,053

-

3,146

51,841
8,665,

209

13,890

"
.

Jan.p

Bank,
...

Plant Conversions Increase
An

,

9,349

small

*

agent elected to continue liquidation after payment
and interest in full to creditors. **100%
principal and interest

-

—-11—-----IZ—ZZI 1,892

Public utilities

1942

Dec.p

Pitts-

holders*

*

2,793
52,155

all

contribute

-1941Nov.

*W«' i

"Transportation

New York

•Formerly in conservatorship
tlncluditig dividends paid through or .by purchasing
bank.
$100% principal and
partial interest .paid-to creditors. § Federal .Deposit .-Insur¬
ance Corp.
appointed as receiver in accordance with Banking Act of 1933. UShare-

;

^—-T-ll,028

—

Pennsylvania RR.
9-24-32

•„

Point

"ooiutractlon

of

(In Thousands)

.

'

Delaware Lackawanna & Western RR—

,Bank of Pittsburgh, N. A., Pitts

1

*'

-

.

Lehigh Valley RR.
11-19-40

Bank, Emporium,

Pennsylvania

burgh, Pa.U
'Exchange National
1
burgh,: Pa.

*.

two

problems—first, use
industry that can
to war production,
and, second, possible relief or
planning for those units not in**

"

.

.

Bur-

■

''

Failure

35.00

Center,

lingame, Kan.f 11 /.J
.First National Bank, Ypsilanti,
.1-—„—I
Michigan*
First

Claimants

9-20-34

1-12-34

National

Offsets Allowed

Date of

Bank,

Illinois*

;

Failure

to All

Including

Wash¬

—

National

'

(March 4) further reported:

Mr. Nelson asserted that there
were

small

Disbursements

Will

-

Manufacturing

,

DURING THE

•

Date of

Press

-

LIQUIDATED^ AND FINALLY; CLOSED
MONTH OF FEBRUARY' 1942
:

-

had touched most small business
and • industry.
The
Associated

/

.

of February, amounted to $3,184,216.
liquidation of the receiverships finally closed

to results of

INSOLVENT NATIONAL RANKS

:

.

occupational

Labor Force—

month

2

"•

.■

102.37% of their claims.

*

as

-

+Jahuary-^—r
1940
1941
Total unemplayment
——_____„10,765
8,026
•Totalemployment (including jurnted forces) il43,333.
46,556
•Agriculture
-r-'
—.-ri- 8,781- ;
8,782
Forestry and fishing»----->-.^-/v4.~-/r47
>190
497
ex¬
Total industry
-15,964;, 18,053
Extraction of "minerals-^.—
—760
759

v/-v*/-, »•••■•+
Dividend distributions to all creditors of all active
receiver,-

ships

■-

.

Total costs of liquid- Trade,* distribution and finance--—^.---—1_ ;7,.480,
Service industries (including armed forces)9,981."
averaged 4.00% of total collections Miscellaneous industries
937

average of

from all

-

.

Distribution of

ation of these receiverships
sources including offsets allowed.

\

:; /

..

classifications are presented in the attached
1942; December, • November, and January, 1941;
and for January, 1940.
broad

receiverships, amounted to $68,228,523, while dividends paid to unsecured creditors amounted

to

great deal can be done and must

These

EMPLOYMENT AND UNEMPLOYMENT,! JANUARY, .1942

.

and other creditors of these nine

/\:

than in December.

table for January,

'

.

more,

Tlie Board's estimates of unemployment and of employment by

r,

LiquidaKion Of Insolvent National Banks

'

committee later.
At the hearing before the sub¬
committee on March 4, Mr. Nel¬
son stated/that
he believed that

1,000,000 .workers received, benefits in January, or about two-

Board.

During the month of February, 1942, the liquidation of nine
insolvent National Banks was completed and the affairs of
such
receiverships finally closed, Preston Delano, Comptroller of the

^

'

hands, arid particularly for those below arid above

be done to bring small business
payments were more than
tripled in Michigan and* were markedly higher in Indiana, Wis¬ into, the war production effort"
of rubber
consin, Ohio, and New Jersey. 1 They would probably continue at noting that a lack
a
high level during February, according to the Social Security and shortage of sugar already

*

•

,

■

,

Unemployment insurance benefits, which had already begun a consideration in the war pro¬
program
although the
to turn upward in December, were increased sharply in January. duction
The various unemployment compensation agencies paid out $41,- first job was to win the war* Mr.
000,000" in benefits covering 4,500,000 man weeks of idleness.
Al¬ Nelson was quoted as saying "a
thirds

customers.

RESIDENTIAL OR DOMESTIC SERVICE
_

.

-

1

;

,

Kilowatt-hours per

v

fense procurement divisions. ;s
The
Banking Subcommittee
Chairman, Senator James N;
Hughes,
Delaware
Democrat^
said he hoped to submit the
new
bill to the full banking

was

Small

Revenue from ultimate

time commission and other de;

port" of the Department of Agriculture. Employment of hired hands
the greatest for any January since 1930, and more youths and preservation of small business and
older persons not likely to be affected by the draft were employed industry was vital to a free en?
than at any other time in the past twenty years.
terprise system, and that this was

Commercial

Interdepartmental

have
authority to parcel out among
small manufacturers prime con*tracts for Army, Navy, mari-i

'

the draft age, was brie of the causes for the increase in agricul¬
tural employment in January, according to the "Farm Labor Re¬

-

Change

v

small

would be endowed with the

power of contractor.
The corporation would

The only upWing in employment in January was in the agri¬
cultural occupations, which absorbed 275,000 workers. * Competi¬

Month of December—-

'

>

/

M.

and furnish facili¬

manufacturing concerns and al-

decreased in

were

.

177,9051

122,493

—

lend money

occurred in .transportation,
public utilities, and mining. There were also 97,000 fewer work¬
ers in the
service industries jj( including the armed forces), and
34,000 fewer engaged: by miscellaneous industries.

*

4,260,255)

4,299,939
172,668

power——

Other customers

l

three

The Nelson-headed corpora¬
tion would be empowered to

so

/;/''> '*/

appoint

corporation directors.

ties any way it saw fit to

Smaller decreases in employment

:

•

*

other
r

would

he

ty,

1

January by only
163,000, despite a growing volumd of "priority unemployment.''
Almost all persons laid off-for this reason are expected to be back
at work as soon as plants are retooled and otherwise made ready
for production of war goods. v

Change

-

,

,

Manufacturing payrolls

/■?-

;

1940

Industrial:

or

78.3

struction employment this January.

24,951,906
685,812

26,025,513
986,719

—
'

Rural

+

^

head this

■

corporation, and in addition to

Completion of current projects and more unfavorable weather are
among the reasons ascribed for the heavier curtailment of con¬

SALES'; ? l'/

1941

domestic

or-

7.5

witH

;

the special small business depu¬

Construction employment also fell off considerably, with 266,in December.
This number is in
contrast with the 120,000 dropped from payrolls in January, 1941.

As of December 31

Number of Customers—

Residential

+

.them directly.
;,,
Mr. Nelson would

^

^

Thursday; M arch" 19, 1942

'rind to negotiate contracts

000 fewer Workers active than

,

+ 16.2

157,702,000

for distribution.

Net

2.1

+

,iV

-are

tablishments hiring extra help during the holiday rush.

.

fff Change
+ 23.1 -

1940
9,057,377,000

'•

related metal-refining and metal-fabricatiocaiedf! ^v' i ; ;* ^*;V/'\/T: v-

The greatest decline- in, 'January, amounting to 623,000, took
pjace in trade, distribution and finance.
Most of these persons
had in.; December held jobs in department stores or in other es-

Month of December——

1941

•Generation {net)—

v

in

war

in

materials

of

fashion to

concerns

/

Telief

not figuring

production.

Graves Resigns Tax Post
Mark Graves,

President, of the

New York State Tax Commission,
has resigned because of ill health,
Mr. Graves had been in the State

having been
various- capacities

service for 35 years,

employed

in

under 11 Governors.

,

He had been

head of the Tax Commission since
1933,

Mr. Graves, who, is 65 years

•

;

.

old, began his career in .the-State
service in 1907* as a, municipal-ac¬
counts examiner in the

Corriptrol-

"

_




ler's office.;

Other posts he held

during his 'career were Director
of the Personal Income Tax Bu¬
reau,

Board

Research
of

Director

Estimate

and

of

the

Control,

member of State Tax Commission
for

eight years and State Budget

.Director,

.

-

>

Volume 155

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4056

Orders Protection Of

;

Retail Prices Advanced Further In

>

In

recent

a

Executive

President. Roosevelt

According To Fairchild Publications Index

Order,

called

,

upon

Following the sharp gain of last month, retail prices have con¬
to advance, according to the Fairchild Publications Retail
Price Index.
Compared toy last month's index of 110.2 (Jan. 3,

Secretary of the Navy Knox to be
"primarily responsible for" and
to

"take

such

such

Wholesale

February

.Vessels, Harbors, Etc.

.

tinued

stepsj." institute

111.9 index as of March 1 showed a rise of 1.5%.
advance of 1.8% during January, which was the
largest since September, 1941.
Prices are now 18.4% above the
same period of
1941, and 25.9% above the period prior to the out¬
.1931—100), the

and issue such
regulations and orders as shall be
measures,

This

the

follows

for, the safeguarding
against destruction, loss or injury
break of the war in 1939.
Under date of March 13, the publication
from sabotage or other subversive
further said:
/
acts, accident, or other causes of
' All the major groups showed increases during the month of
a similar "
nature, or vessels, har¬ ;
February.
Piece goods showed the greatest monthly advance,
bors, ports, and waterfront facil¬
3.5%, and was followed by women's apparel with 1.7%. Home
ities in the United States
and in
furnishings showed the least monthly gain, 1.4%.
Piece goods
Alaska, the Territory of Hawaii,
'also showed a very great increase above last year and over the
Puerto, Rico,
and
the
Virgin
necessary

,

Islands,

period immediately preceding the outbreak of

/ women's apparel and home furnishings. As in January, infants'
wear advanced the least during these
two periods.
-

lated

V eluded in the index.

that

"Executive

Order

•

.

No.

8972 of Dec.

.national-defense
material,
premises,.and utilities from injury
or
destruction, is modified ac¬
cordingly."
•
•/- '■
,

The Feb. 25 Executive Order of

the

President

...

/

:

all

i

conform

;

>

regulations /and

orders

.

-

-

assistance

-

available

£

>

facilities

and

all

urged to
assist and support the Secretary
•of the Navy at all times in the
persons

y

sued heerunder., *

v

Except as provided, by Sec¬
tion 1 hereof, nothing herein

,

;

„

k,

contained shall be construed as

relieving
=

ity

+

of the United

States-from

t''

Justice, with respect to the -investigation of alleged acts of
sabotage, espionage, or other
types of subversive activities, or
require it to furnish facilities or
personnel under Section 2 of

-

.

1

The

Piece

Navy

the

officers

such

to

direction

his

under

Goods

Men's

/'■"//

Women's

,

he

as

may

deem necessary any of the pow-

war

also continued to ad-

RETAIL

PRICE

Piece

5

:

76.4

Wear

>•

70.2

Furnishings.——--v-——
—

-

—

Woolens
—

105.0

107.1

110.8

97.5

98.1

101.1

102.7

93.3

106.9

107.7

109.1

111.2

87.6

103.2

103.7

104.9

106.7

,

—

Blankets
Women's

.

Comfortables—»

&

duties

and

him by any

upon

of the provisions of

order.

this

conferred

Apparel

:

——■'

Corsets

Brassieres

&

Underwear

to

business

Apparel .'>
Hosiery.

Men's

:

•

Shirts

&

&

117.2..

125.3

125.5.

128.8

■•.132.0

such

a

stances

/

'/

88.6

89.8

/

91.5

127.4

129.5/

134.2

138.4

102.1

103.2

105.2

.108.1

:

://;

/:

76.3

86.1

excise

of

tax

taxes

on

10%

/ 91.6

96.0

96.4

102.4

104.9

106.2

110.4

111.7

91.8

93.1

96.1

97.9

89.4

89.4

90.8

91.8

100.0

102.2

103.4

103.8*

104.5

106.6

,

proposal and in many in¬
have already adopted stag¬

making

the

Thomas' Jefferson

tary of the
that many

survey

public,

Miley,

Secre¬

City's

:

•

additional returns were

merce

of

Associa¬

tion said:
The

plan

wartime

is

proposed

measure,

as

and,

a

if

adopted, would shift the arrival
departure of a sufficient
number of employees so as to

entire
/

•

:

reported

nue

elevated lines.

"22%

of

the

present ,5 to 5:30 quitting time

range

8 to 9 morn¬




Housefurnlshing

their working schedules if

products—

goods

—0.5

73.4

+ 0.3

+ 2.2

+ 30.5

102.5

+ 0.1

+ 0.5

+ 13.6

95.1

94.9

93.7

93.5

76.6

+ 0.2

+ 1.7

+ 24.2

+ 0.1

+ 1.4

+ 44.0

78.5

78.4

78.5

78.4

72.6

+ 0.1

+

8.1

103.7

103.7

103.6

103.6

97.9

+ 0.1

+

5.9

109.9

109.9

109.7

109.4

99.5

+ 0.5

+ 10.5

97.1

97.1

96.9

96.6

87.7

+ 0.5

+ 23.4

104.1

102.9

90.8

104.1

104.1

+ 1.2

+ 14.6

89.2

89.1

89.1

88.2

76.8

+ 0.1

+ 1.1

+

Raw materials

97.1

97.4

97.2

95.9

74.1

—0.3

+ 1.3

+ 31.0

Semimanufactured articles—

92.0

91.9

91.9

91.9

82.2

+ 0.1

+ 0.1

+ 11.9
+ 16.6

Miscellaneous

commodities

Manufactured products-.*.

16.1

97.7

97.4

97.1

96.3

83.8

+ 0.3

+ 1.5

95.9

95.6

95.3

94,7

82.8

+0.3

+ 1.3+15.8

95.0

94.8

94.5

84.8

+0.1

+ 0.6

All commodities other than farm

products
All commodities other than farm

products and foods

95.1

PERCENTAGE

7/*™--

CHANGES

IN

INDEXES

SUBGROUP

+12.1

FROM

FEB. 28, 1942 TO MARCH 7, 1942
Increases

101.5

102.5

103.8

105.2

0.1

125.5

126.6

128.6

129.8

Paint

140.4

140.7

143.9

144.8

Shoes

•65.6

•65.7

•66.3

•66.6

Petroleum

:
v

53.5

•89.7

76.0
79.8

94.8

*89.7

•92.6

goods
and

Woolen

and

worsted

•91.6

*92.2

•92.7

106.4

108.5

109.6

Major group indexes

arithmetic

are

appliances
////■•/,:/' .■//

electrical

a

products

levied- on

Chamber

State

of

exists

of

Commerce
York

Public

has

of

Service

in

sections

in

sub¬

bus and pedestrian travel
during the rush hours," and that

way,

the situation

"will grow worse as

Prohibit Civil Flying

Decreases

Rooseveit

istrator of Civil Aeronautics.

Cereal products

Other farm products—.

0.8

Cattle feed

0.2

Grains

0.6

Cement

0.1

News-Record"
Public

The

some

White House in

time

the

had

orders
ago

bar¬
the

area near

Washington.

March

last week.

than

year ago

a

The

12.

construction tops the week last year by

below

Private

and

current

a

work

41

is

8%, but is 2%
lower, respectively,

and 44%

week ago.

week's

construction

brings

the

1942

total

to

$1,-

gain of 24% over the $1,245,406,000 reported for the
eleven-week period in 1941.
Private construction, $154,338,000, is
46%% under the volume for the period last year; but public work,

542,271,000,

a

$1,387,933,000,
increase

in

tops

Federal

Construction
current

week

year ago by
construction.

56%

a

for

volume

the

as

result

a

of the

103%

•

1941

week,

last

week,

and

the

are:
Mar. 13, 1941

Total

construction

$132,626,000.

;

Private construction
Public construction

—

Mar. 5. 1942

Mar. 12. 1942

$145,401,000

$133,267,000

20,683,000

21,766,000

12.167,000

111,943,000

123,635,000

121,100.000

27.620,000

10,766,000

11,052,000

84,323,000

112,869,000

110,048,000

—

*

State

and

municipal

Federal

week

are

classified

—

—

the

clasified

reported

construction

in

bridges,

construction.

groups,

gains

earthwork

Increases

over

and
the

over

the preceding

drainage,

and

corresponding

un¬

1941

bridges, commercial building and large-scale private
housing, and public buildings.
Subtotals for the week in each class
of construction
are:
waterworks, $959,000; sewerage, $1,204,000;
bridges,
$2,616,000;
industrial
buildings,
$3,308,000;
commercial
building and large-scale private housing, $8,769,000; public build¬
ings, $85,055,000; earthwork and drainage, $616,000; streets and
roads, $6,626,000; and unclassified construction, $24,114,000.
New capital for construction purposes for the week totals $6,week

are

week's

Similar

over

0.2

.

Engineering construction volume for the week totals $133,267,an increase of 0.5% over the corresponding 1941 week, but 8%
lower than the volume reported for last week by
"Engineering

231,000,

issued

.

000,

servation."
been

0.6

Dairy

0.8

order, designed for the President's
safety, creates an "air space re¬

ring flights

products

1.5

In

Over Hyde Park
President

0.1

and fats

—.

an¬

District,
said
congestion already

in certain

0.1

Paper and pulp

Engineering Construction Down 8% In Week

New

on

Oils

Furnishings

0.2

—

and vegetables

Fruits

Reis, Chairman of the Chamber's
Committee

0.3
0.3
0.2

the

19% refused."

The

the

poultry

of the fur index.

are

general stagger plan is adopted;

and

goods—

paint materials

•93.3

•91.1
105.6

signed an
include - the
New
York Executive Order on March 7 pro¬
Central, Long Island, Erie, Del-' hibiting flights
by
commercial
aware, Lackawanna and West¬ aircraft over
or
near
his Hyde
ern railroads,
various bus lines Park (N. Y.) estate without spe¬
and the Second and Third Ave¬
cial permission from the Admin¬

ing rush hour from 7:30 to 9:30
and
similarly
"stagger"
tbe

extend the present

lighting materials
products
Building materials——

Metals and metal

70.5

93.7

115.8

o.a

used

reporting firms
stated that they already have a
stagger system of their own in¬
stalled," the report went on. "43%
expressed a willingness to rear¬

and

100.1

94.8

116.1

0.1

get back and forth from work.
means

101.9

95.5
116.3

0.1

"serious

-

102.0

95.8
116.4

Clothing

that

transit

101.5

3-8

1941

+20.2

Livestock and

Metropolitan

Other

+ 1.3

2-7

Other miscellaneous

reported to the Association, in answer to a question on
employees' delay due to. con¬
gestion. 62% reported that they

of

+ 0.1

0.3

the

Boroughs, the majority
them using the subway, toJ

80.6

Cotton

nounced its approval of the plan
to stagger work hours. Arthur M.

had experienced such delay and
of this number, 70% said it was
due to subways, 19% to buses,

95.7

102.8

firms, repre¬
senting approximately 80 different. types of business and
employing a total of 24,043 per¬

175

in all 5

Com¬

which developed the plan.

The announcement of the

of

or

96.5

102.1

production for national defense
8% to surface cars, while only increases."
The plan was dis¬
3% reported delay due to street cussed in these columns of March
congestion.
The employees in 12, page 1059.
question were reported to live

Association, declared

Department

total

firm.

a

1942

96.8

101.2

•/./■■■,;

sons,

expected and that when the com¬
plete results were obtained they
would be placed in the hands of
Commissioner George A. Sloan of
the

employees

personnel of
A

lie.
In

of

groups

1942

96.9

2-28

100.7

■

at retail is' excluded in the computation

Changed

1941

95.2

127.8

and

1942

3.4

72.5

radios,

1942

2.3

weighted aggregate.

luggage,

/ '•/•/

1942

Meats'

93.9

schedules would apply to either

plans, according to a pre¬
liminary report. on. the. Associa¬
tion's survey recently made pub-

•

products

Lumber
a

1942

Plumbing and heating

81.5

Note—Composite Index is
averages of subgroups.

3-8

112.0

60.1

—

Appliances

China

2-7

108.8

50.6:

—

2-21

107.3

104.8

;

•":

105.5

;

2-28

107.3

80.9

79.9

91.0

3-7

103,6
'

69.4

102.1

100.6

/>

102.6

/

94.7

•135.3

♦134.0

98.8,

99.7

92.3

+

74.3

——i

,

r

♦135.9
.

90.4 /;■

•+■..

AAA ' '•

+

Household

/

83.5

74.0

——————

Luggage

87.3/
92.0
.

''/■:>/

/

———,

Radios

/A; /-

70.1

__

.

Coverings

Electrical

89.8

69.7

—

Underwear
;

97.7

88.9

•

Overalls—

•136.4

87.0

74.3

incl.

*

111.7

76.5

Neckwear——
—

....

69.2

64.9 :/

———

Furniture

92.9

;

Wear

Socks

ger.

'

products

Chemicals and allied

'

r
A..

V

Infants'

ciation of New York, Inc., on

the
question of staggering ; working
hours in New York City favor

All Commodities

72.9

'

7, 1942.

(i926=ioo)
March 7, 1942 from

Commodity Groups—

124.9

•

March

Percentage changes to

120.8

69.6

Shoes

;

to

•y-Yy'-f

,

114.7

e

Caps

Clothing

the Commerce and Industry Asso¬

•

/'■''/
•

113.2

———

Underwear

re¬

by

from Feb. 28

indexes

93.8

.

men

The following tables show (1) index
numbers/for the prin¬
cipal groups of commodities for the past 3 weeks, for Feb. 7, 1942
and March 8, 1941 and the percentage changes from a week
ago,
a month ago, and a year ago
(2) percentage changes in subgroup

65.0

'

manufacturers.

questionnaire,

a

while Pennsylvania fuel oil advanced.
prices for lumber declined 0.8% as lower prices
were
reported for maple and oak flooring, for most types of
yellow pine lumber and for turpentine.
Prices were higher
for Ponderosa pine and for tung and linseed oils.
Higher prices were reported for boxboard and for soap.
area

Textile products

87.8

reacted during the week, with
except corn, and for most livestock,
In addition sharp declines were reported

Average

141.8

^

markets

all grains

v

continent

134.9

'■/

^

apples, lemons, beans and potatoes.
Cotton, on the contrary,
slightly. Notwithstanding this recent decline, average
prices for farm products are still 44% above a year ago.
Minor price increases were
reported for shoes and for cloth¬
ing, cotton goods and woolen and worsted goods.
y;
Heavy stocks forced prices for gasoline down in the Mid-

132.0/

-i

levels.

advanced

129.2

66.8

——„——

——

to from 4:30 to 6 p.m.

sent

for

except hogs and sheep.

103.3

83.6

—

L———'..

Furs

A majority of the firms which
answered

prices

68.6

73.3

week's

Flour and cattle food declined slightly.

livestock

83.9

Work Hours Favored

cently

and

Hides and leather

106,6 /A

last

for

Farm
/

"

•The Federal

|

Grain

lower

106.6

..

at

advanced with sharp increases

114.3

112.7>

-

"Staggering"-

tables and for eggs.

104.2

•

Prices

.There were also increases for fresh
beef,' and dressed
poultry, and for oatmeal, oleomargarine, and peanut butter.
The
market was seasonally lower for certain fresh fruits and
vege¬

101.7

59.2"

0.1%.

fruits.

101.2

■

commodities

in prices
meats, particularly pork and veal, and for canned and dried

for

89.8

■'

during the week brought

0.5%, and prices for the other major

unchanged

index for foods

82.1

75.5

& House Dresses—/—

Aprons

The

Plan For

The

miscellaneous

declined

remained

groups

81.3

>V'T: V

Hosiery

Floor

and

products

Fuel and

Sheets

Hats

materials

farm

110.2

"

ers

lighting
of

80.7

Domestic

Shoes

The rise of 0.1%

prices for foods advanced 0.3% during the week;
products, 0.2%; and hides and leather products, fuel and

109.5

Jj

'

:

69.2/

Cotton Wash Goods

103.7
<

96.0
♦.

57.4

v

-

1942
111.9

S.

Department of Labor,
in primary markets
margin during the first week of March,
agricultural prices following the marked

in

February.

64.7

'/i ' A'

■

1942
110.2

U.

Average
textile

Mar. 1,

1941
108.3

89.3

71.8-

-

Feb. 1,

Jan. 2,

1941

Statistics,

that commodity prices

narrow

.

INDEX

107.5

/

87.6

70.7

———-—

Dec. 1,

,

94.5

65.1

—.—

Goods

Silks

Mar. 1,
1941

,

•69.4

/

a

reaction

a

in

Labor

the Bureau's index of nearly 900
price series to a new 13-year peak
at 96.9% of the 1926
average.
In the past year prices haVe risen
20% and are now 29% above their pre-war level.,
The Bureau's announcement further said:

3, 1931=100

May 1,

"'

'

—

—

Apparel

Infants'
Home

—

___————

Apparel

Shoes

of

Secretary

delegate

may
>

PUBLICATIONS

1933

;

this order.

index

of

March 12

on

except for
advances

therefore still expect further gains in retail prices.

FAIRCHILD

•

Composite' Index

modify the duty and respori-

sibility of the Federal Bureau
of Investigation, Department of

h

can

•'■/•'■■

performance of any duties
imposed by law upon it;
and nothing herein shall limit

or

We

JAN.

now

;

further, according

Bureau

fluctuated within

Copyright 1941 Fairchild News Service

author-

any agency or

inventories

cost

which many wholesale prices have

to

vance.

THE

the
'

low

are

I enforcement of this order, and
to conform to all regulations is-

last

as

As has been true during most of the time since

-

//' ;

All state and local authorities
and

•

reduced

person-

'

...

compiled.

tion

and

nel will permit.

rapid

as

began, retail prices are still below a replacement basis, in addi¬

support to the
Secretary of the Navy as their

v

is

advance is still almost

W. Zelomek, economist, under whose supervision the

to A.

is-

in-

commodities

in part to the fact that the continued high level of

has

sales

retail

sued by the Secretary of the
Navy pursuant to -Section 1
hereof,
and
shall
give- such

,

the

The

retail price

the

That

.

month is due

to

in

For the first time since October, furs have

increase.

an

further

United States shall

decreases

no

The

announced

shown in cotton wash

were

stipulated;
All agencies and authorities
of
the
Government
of
the

,

•

■

were

greatest advances during the month
goods, sheets and pillowcases, aprons
and housedresses, infants' socks and corsets and brassieres.
Since
the corresponding period last year, cotton wash goods, sheets and
pillowcases,' women's hosiery,-j aprons and housedresses,
have
gained the most.
In practically the same order these commodities
have shown increases over the 1939-1940 period.
recorded

12, 1941, authorizing
the Secretary of War and the Sec¬
retary of the Navy to protect cer¬
tain.

month there

This

Commodity Prices Up Slightly
Reports Labor Bureau

In Week Of March 7,

in 1939, as did

war

such waterfront
facilities as may be directly oper¬
ated
by the War Department."
The new. Executive Order, stipu¬
except

1157

in

increase of 18% over the volume for the 1941 week. The
financing is made up of $3,853,000 in state and munic¬
ipal bond sales, and $2,378,000 in corporate security issues.
New construction capital for 1942, $1,382,371,000, is just double
an

new

the $693,264,000 reported

for the eleven-week period a year ago.

FINANCIAL CHRONICLE

THE COMMERCIAL &

1158

records

Market Value Of Bonds on

To Start Alaska Highway
Construction of a highway to
Alaska by the United States is ex¬
pected to be started upon com¬
pletion by Army engineers of the
tentatively approved route.
The
Canadian-American Joint Defense

.

Stock

decided to recom¬
mend to President Roosevelt and
Canadian
Prime Minister Mac¬
King

\

construction and Mr. King an¬

on

Ottawa

in

nounced

March

on

6

'■

;

proved the project, based on mili¬
tary considerations.
The 1,500-mile road, from the
State
of
Washington,
through
British Columbia and terminating

etc.) ■*-—.—
companies:

S.

310

——i—-~——

Building

Alaska, will follow
approximately the general line of
airfields constructed by the Can¬
adian
Government.
The
high¬

;;

Chemical
Electrical

•

equipment

Financial

*—-

vf;

—

Food

■*—

and metals—.—.—
Mining (excluding iron)—
Paper and publishing
Machinery

maintenance.

Shipping services
Steel, iron and coke—.

Petroleum

;

Interior Ickes
said on March 10 that present
plans call for completion of the
Secretary of the

building and operating—

Textiles

Wage-Hour Law Affects
Savings Bank Employees

on

Foreign

1

the

Act

is

bank ;
the

mutual savings banks,
ferences existing
*

I

108.47
63.39

63.01

11,851,705

77.13

11,633,476

75.71

60.4

69,571,920

94.68

70,380,618

95.78

the

11,242,560

98.00

11,314,260

98.63

'

■>.'

6,526,083,216

(

17,228,540

62.18

16,953,350

61.18

551.880,989

100.29

553,012,145

100.47

25,856,003

97.40

26,039,638

98.09

89,918,797

118.55

40,019,748

118.85

106.39

3,195,285,160
109,297,125

106.68

102.86

106.24

1,194,980,576

106.58

81,353,700

55.10

100,478,218

52.55

•

•

82,194,475

55.67

98,483,591

54.16

31,492,500

103.25

31,475,625

13,247,528,419
1,110,611,410

77.99

13,256,973,309
1,136,341,591
706,135,583

;

.

,

49.28
78.51

680,632,629

,

>•

'

5

49,611,937,544
46,936,861,020
47,665,777,410
48,601,638,211

91.97 ' '
92.86
92.48
87.87
90.14
90.96

Aug./.' 31—1—u-

49,238,728,732

91.33

30

49,643,200,867

92.08

Mar.

30—

May,

50,006,387,149

.

—

31

Sept.

-

1

50,438,409,964

—

50,755,887,399

93.58

,50,831,283,315

93.84

31-

Oct.,

30

Nov.
Dec.

.

29

July

i

31

92.84

y-

«

Jan.

'

Daily average

Total

78.66

95.24

,

Price

$50,277,456,796

$92.72

Mar.

31—

93.73

April

30

52,252,053,607
52,518,036,554

30—_

52,321,710,056

94.22

30

53,237,234,699
53,259,696,637
53,216,867,646
53,418,055,935
55,106,635,894

'94.80

May

July

£

»
.

31—
30

Sept.

30

Oct.

31

-

-Nov.

Dec.

in

Washington

*

54,812,793,945

55,033,616,312

94.50

Jan.
Feb.

......

'

,

<•■

'■ - "

56,261,398,371
57,584)410,504

31
28

in

arrived

who

Statistics During
Four Weeks Ended Feb, 28, 1942

TIT"*

■r~r'

■

•

'

•

'*

•

..

'

'

■

*'

-

aboard

March 8

a

(In 1,000 feet)

"

:r

865,587

Hardwoods

.1

49,124

lumber.

914,711

Production during

taken

on

any

his post

shortly.
diplomat

who

Another

ferred

in

with

con¬

President

the

March 9 was Alexander W.

.1941

957,985

982,738

51,393

45,634

47, 794

988,034
43,768

961,179

1,032,205

1,003,619

1,030,532

1,031,802

the four weeks ended Feb. 28, 1942, as re¬

-

on

Wed-

dell, United States Ambassador to
Spain, who has been in this coun¬
try since Feb. 24.

*

Asphalt

•

-

..

...i —;

'

Total domestic demand—.

Crude

December Crude Oil Production

demands the war

year,

12

Crude-oil production

of

a

meeting
The

Trustees.

convention

had

been

for the first week

lantic City.

"

~




1941,

about 27,000 barrels higher than in November.
The pre¬
liminary total output for the year 1,404,182,000 barrels, a new an¬
annual
nual record and 4% above 1940.
The Bureau's report further states:

of

rels,

the

scheduled

or

The

in June at At-,
-

again set a new record in December,

reported by the Bureau of Mines, U. S. Department of the In¬
terior.
The daily average output in December was 4,138,500 bar¬

it is

increase in daily

ber just about
(

in- California

.

~*

*

'*

*

>'♦

•

•

•

»

'

I

.

.

1

r''

113
703

'1,313

•
>

V

1.

*

169

♦.

6,022

*
*

219
2,246

'

. 1,

• '

,.

———

.

*

19,949

*

1,326,620

. '

1

120,900

•

3,900'

243,679

:
243,735

10,179
-4,275
290,375

10,203
4,557
291,805

9,869
4,870
289,704

551,713
*

550,244
*'

548,178
*

246,884

—

—

■

-

Total, all oils

——

Days' supply-.———

-

-•*

-

3.625

-

^

246,884
11,906
10,179
5,704 7
4,275
282,265
290,375

264,709

551,713
*

564,584
142

264,709

.'564,584
137

11,906
5,704
282,265

tFinal figures. $Increase. §The Bureau was hopeful of
being
domestic demand figures for October, November, and
December in this report.
However, as there is no indication as to when a decision
will be reached it was decided to release the report without further delay.
"■Publication

suspended.
permitted to publish

OF

PRODUCTION

PETROLEUM

CRUDE

V /.:7: 7 7;-7''7;7:7
7'"-• ,.,;7

December, 1941
Total

7

v.

Nov., 1941

1,207

13,982

16,730

38.8
87.6

1,295
2,506

14,697
30,673

16,010
30,195

14,660

472.9

485.5

13,726

170,911

160,946

19,590

631.9
6.1
397.8

18,734
127
10,553
581

230,263
1,875

223,881
1,626
147,647

5,932

i

578

18.6

|

,7,957

256.7

248.5

394

12.7

11.8

Gulf Coast

8,682

208.1

273.5

California

Colorado

189

—

^

—.

12,332

Indiana—

Kansas

.

38.7

38.5
85.8

650.6
6.3
403.9
16.3

Total

' ■■

34.7

1,193
2,662

7

—

Rest of State

■'

f 1,075
—™_.

Wilmington-

25,755
■

Kettleman Hills

Long Beach—i.

n940

'1941
26,327

1940

2,153

72.1

74.3

-;.>>>

January-December

*Dec.,

'

■

FIELDS

J", . 7'.:

Daily aV. Daily av.

2,304

——

California:

BY STATES AND PRINCIPAL

(Thousands of barrels)

Kentucky—

-

<

134,138
6,634

4,978

66,139

83,261

5,188

4,762

428-

Louisiana:

1,697

54.7

13.4
57.3

503
1,607

5,212
20,142

6,859
17,547

347.4

344.2

8,953

115,908

103,584

1,759
2,185

56.8
70.5

56.9
74.7

1,301
516

16,361
15,314

683

22.0

21.6

584

3,478
468

112.2
15.1

Michigan

Mississippi
Montana—

-

Mexico

New

12.6

391

Rest of State
Total Lousiana--

New York—L_

79,178

90,554

6,843

10,770

Rodessa——

——

Ohio—

112.8
3,124
13.8- "
397
9.2
279

•' 308

9.9

2,645

85.3

86.4

3,022

3,233
7,389

104.0
238.3

103.5
235.4

3,183
6,761

13,257

427.6

425.3

1,527

49.3

45.7

.

•

19,753
4,400

39,369
5,185.,
3,340

6,728
39,129
4,999
3,159

33,199

38,051

7,526

Oklahoma:

City

Oklahoma

Seminole-—

of State—v

-

.Te5uli

12,798
' 9,261
11,940
-2,702
319
10,480
47,500

Coast

West Texas

-

-

East Texas

Panhandle--Rodessa

Rest of State
West

-

302

Virginia-;

Lance Creek

,4

Salt Creek
Rest of State

Total Wyoming-^.

Other

-

Total United States
•uinoi

finnrac

\

405.9
"
290.7
380.7
.
84.8
,
11.0
332.7
.1,5323 ' 1,505.8
9.8
9.0
412.8
298.8
385.1
87.2
10.3
338.1

680
—426
.1,442
2,548
$164

21.9
13.8
46.5
82.2
5.3

128,293

4,138.5

-

crude-oil production in Texas in Decem¬

equaled the national gain. Decreases were recorded
Illinois,, gains in Kansas and Oklahoma. New

and

I

1,875

♦
*

51,496
78,970

.

-n —-L-

Heavy in California

.

19,702
34,278

■

*
*

.7 ?
*>• '■ ■
*
589,490
.
«
68,776
-■■■*'■■*■
160,851
'
*
• 340,163
V
*
24,690
*
>
1,275
7.034
''
•
28,182
*
7.849
*
! 75.950
*
2,411
'

46,452
7,808

»

7 *"

Total Texas

announced on March

following

Board

New Record—Crude Runs Decline Further

C. W. Kellogg, President of

the Institute,

Again Sets A

'

*

,

petroleum:

Natural gasoline
Refined products

/, ;

-

v

♦

Pennsylvania

imposing upon electric utility
companies,, the regular
annual
convention of the Edison Electric
Institute ' will not be held this

,

•

Total Oklahoma—

Due to heavy

*
•

STOCKS

.

1,457,086
♦•;>>
3,981

2,074
4,917 ^

.

.

"
*
*

Daily average

Rest

is

{

'
:

>

-

^
•

/

*y
*

V.
"

"

Wax

Illinois—

Edison Convention Off

*

v

.

Coke

,

4,087
$38,746

•

127,891

4,126

*•

*
*

V

.

*

gain of 2%, and hardwoods a gain of 13%.
Orders received during the four weeks ended Feb. 28, 1942, were
below those of

°

V "
I :*

'

V;

Lubricating oil

5% below that of corresponding weeks

weeks of 1941 and

corresponding weeks of 1941. Softwood orders
in 1942 were 1% below those of similar period of 1941 and 24%
above the same weeks of 1940. Hardwood orders showed a gain of
9% as compared with corresponding weeks of 1941.
On Feb. 28, 1942, gross stocks as reported by 390 softwood mills
were 2,756,105,000 feet, the equivalent of 70 days' average production
(three year average 1939-40-41) as compared with 2,979,656,000 feet
on March
1, 1941, the equivalent of 76 days' average production.
On Feb. 28, 1942, unfilled orders as reported by 388 softwood
mills were 1,354,155,000 feet, the equivalent of 35 days' average pro¬
duction, compare dwith 1,067,020,000 feet, on March 1, 1941, the
equivalent of 28 days' average production.

He expects to return to

London.

7

"

Residual fuel oil—

Arkansas

0.1%

usefully to

coordinate what has to be done

1942

1941

980,812

year ago.

same

Pan-American

place in order

/

products

Distillate fuel oil—-

Softwood production in 1942 was 6% below that of the
16% above the records of comparable mills
during the same period of 1940. Hardwood output was 21% above
production of the 1941 period.
•
Shipments during the four weeks ended Feb. 28, 1942, were 3%
above those of corresponding weeks of 1941, softwoods showing a

a

Mr. Winant,

1942

^

;

»
*

1

petroleum

Kerosene---

Lumber

920,706
40,473

ported by these mills, was

special mission in
Washington but had merely come
to find out what changes have
have

*

Motor fuel__™-_™™™

—

Orders Rec'd

Shipments

1941

1942

Softwoods

Total

Airways clipper, said that he did
not

470 mills report as follows to the National
the four weeks ended Feb. 28, 1942: '
Production

;

York

*

,

Still gas

An average of

Roosevelt

New

-

Refinable in U. S

first time since the American en¬
trance into the war.

Crude

95.24

10,934

'

Refined

(95.13

4,033
2,880

*:•

^Domestic demand:

,

*
$3,962

42,662
41,089
1,495,832

♦
*
*
♦

4,733
4,219
125,011

*
'*

$2,066

$1,469

Daily average

94.74

116,059 1,471,855 1,412,081
-3,744
4,032
3,858

»

*
*
*
*

'

0

Exports:

95.25

31—

29_

*
*

„

(

demand~r

Total

We

March 9 for the

on

*
•

Stocks, all Oils

'

DEMAND

i 94.86

>94.80

1942—

4,271

*

petroleum

supply, all oils

Daily average

ended Feb. 28,

Ambassador to Great Britain, con¬

President

new

Decrease in

95.04

*

1

132,393

4,321

January-December

1940
1941
tl940
110,772 1,404,182 1,353,214
3,573
3,847
3,697
4,988
64,204
55,709
A
299
3,469
3,167

■

>

Road oil

.

Winant, United States

with

-

Refined products
Total

94.32

'

93.05

50,374,446,095

31—

Market Value

28—

June
•

T

>p:-i

Confer With President

ferred

134,698
4,345

production

Imports:
Crude

1941—'

129,633

) fDec.,

'

56,261,398,371

95.13

Oct.,
1941
126,145
4,069
5,952
296

Nov.,

50.41

Lumber Manufacturing

nomic study of the latter type

G.

gasoline

1941
123,355
4,112
5,994
; •
287

;

1941
128,293
"
4,138
6,082
323

Crude petroleum.,

/>>•; Benzol

77.85

Trade Barometer for

John

Dec.,

Losses

that dif¬

88%, com¬
1940.

(Thousands ol barrels)

>

;

.

Domestic production:
'

103.20

.

;

'

-

Miscellaneous

between their

.

(

NEW SUPPLY

Feb.

Aug,

1941—

some

institutions.

•

<

plicable to employees of savings banks, the Wage and Hour
Division made a separate ecoof financial

capacity represented by the data in this report

oil

103.62

Average

'• Average

.

Price

June

1942,

In January,

December, 1940.

4,591,000 barrels, hence the operating ratio was
pared with 88% in November and 82% in December,

Daily average

}

57,584,410,504

Market Value

April

in

49.5

59.5, compared with 50.0 in January, 1941.

was

crude

The

give herewith data on identical mills for the four weeks
1942, as reported by the National Lumber Manufac¬
turers Association on March 10:
.-''
'-0%

,

and

November

in

index

was

operations and those conducted
by commercial banks rendered
the Wage and Hour Law inap-;
!

but there was a slight decline in kerosine

ago

year

Natural

49,605,261,998

29.

inter¬

by

102.74

100.67

utilities

government
companies——

1940—

applicable to
employees.
Because of
made

100.44

57,644,899
591,839,671

6,566,720,879

1,191,161,776

———

companies—

S.

Feb.

generally

contention

59,023,570
618,611,137

10% over

consumption.
According to the Bureau of Labor Statistics, the price index for
petroleum and products in December 1941 was 59.8, compared with

a

the Exchange:

on

Standards

Labor

Fair

55.39

demand for fuel oils in December was roughly

The

table, compiled by us, gives a two-year comparison
of the total market value and the total average price of bonds listed

state character and that as a re¬

sult

89,076,589

/':

templated because of the high yield.

The following

.

an

64.89

99.22

7,000,000 barrels, or more than con¬

ished gasoline increased about

SUPPLY AND DEMAND OF ALL OILS

All listed bonds————

Administrator of the
Wage and Hour Division,: U.. S.
Department of Labor.
The De¬
partment's announcement added:
The Wage and Hour Division
has
consistently expressed its
opinion that the normal activ¬
of banks are of

56.90

companies oper. abroadbusinesses

U.

8,911,896

53,150,716

,

about 56,-

was

sumption and to increased defense demands.
Pearl Harbor appar¬
ently had little effect on civilian consumption but probably spurred
sales to the Army and Navy.
Inventories of finished and unfin¬

!

108,495,546

S.

67.91

/-

3,185,777,560.

Foreign

calf Walling,

ities

103.96

(operating)-

Total

ployees of commercial banks, are
engaged in activities which are
directly connected with and nec¬
essary to
the conduct of inter¬
state business, and are therefore
entitled to the benefits of the
minimum
wage
and
overtime

nounced

100.15

207,773,096

(holding) —

U.

Employees of ordinary mutual
banks, as well as em¬

Act,
it
was
an¬
March 16 by L. Met-

103.07

103.98

Miscellaneous

savings

Standards

100.46

58,964,518

for motor fuel in December

total demand

The

peak.

above November and close to an all-time

0.5%

:

.

Miscellaneous

Labor

77,251,750
36,075,000

electric

and

Communications

Fair

99.61

100.01

Gas and electric

Gas

99.75

-103.54

—

Utilities:

14,962,500

.

800,000 barrels, or 17% above the previous year. As in November,
the material increase was related to the lack of restrictions on con¬

97.84

58,730,665
207,816,233

Tobacco

road within one year.

91.47

36,237,500

: W."

—.—w

102.99

17,318,455

.

'

91,240,802

Rubber

Ship

33,696,361
13,850,866

:

.

'-V 99.88

98.57

.—

105.83

.

Y&i; 45,805,048

—-—

_™

41,161,947,888

the

the three major products, gasoline, distillate, and
residual all increased in December.
The gasoline yield of 45.7%
was

76,597,500

merchandising

Retail

-

the

91.09

9,327,328

Railroad

of

103.15

17,245,593

Land and realty

will

provisions

'

'

98.65

.

13,871,297

14,981,250

equipment-

and office

connect with existing
road systems of Canada and Alas¬
ka.
Cost of the road is estimated
at from $25,000,000 to $50,000,000,
with the United States paying for
the
construction
and
wartime
*

-

■

Business

>

i'f- 34,313,792

~-----r-

Automobile

in Fairbanks,

way

;y;'

"

,

Amusements

-

$

105.25

42,545,638,046

Cities,
U.

Price

December

The yields of

•

(lncl, States,

Government

S.

$

■

for

and

declined,

again

stills

to

runs

barrels, or 9% above 1940.

Average

Market Value

$

Products

daily average was 4,032,000 barrels, compared with 4,051,000 bar¬
rels in November...- Total crude runs in
1941 were 1,409,jl92,000

.

Price

y

v

——Jan. 31, 1942

Average

Market Value

Group—
U,

—-Feb. 28, 1942

'-v .•ft

had ap¬

that the Canadian cabinet

Crude

since last March.

(about 3,200,000 barrels)

increase

Refined

-

immediate start

an

substantial

.

which showed the first

reflected in refinable crude-oil stocks,

were

announced on March 9. This compares with 1,171 bond is¬
sues aggregating $59,075,678,533
par value listed on the Stock Ex¬
change on Jan. 31 with a total market value of $56,261,398,371.
In the following tables listed bonds are classified by govern¬
mental and industrial groups with the aggregate market value and
average price for each:
:;r'■■

r '

change

Board recently

kenzie

Gulf Coasts..;-' *

Increasing

aggregating $60,532,171,333 par value listed on the New York
Exchange with a total market value of $57,584,410,504, the Ex¬

issues

and in both the Texas and
;••
production and declining crude runs to stills again

established in Kansas

were

Louisiana

1942, there were 1,165 bond

of business Feb. 28,

As of the close

.

N. Y. Stock Exchange

Thursday, March 19, 1942

1

tMicumtrl

(NAhr«slfft

-

4,111.8 nsfti."

156,164

154,759

16,750

-

♦

-

17,353
122.166
84,494
141,023
26,716
6,607
112,203
493,209

10,258
135,139
-6,513 ^ 92,907-■
11,060
132.586
2,371. 27,831
477
4,712 >
9,331
114,409

k

78.3
5.0

1,444

40,946
77,167

37,930
83,630

12,966
*

22.4
13.5
42.4
,

'

40,011'
281

507,584 -

3,433

3,444

798
446
1,076
2,320
88

8,838
5,156
15,700
29,694
1,699

9,121
5,201
.11,389
25,711
' 347

110.772 ' 1,404,182

1,353,214

,

Tennessee-11).- and Utah

(—

Volume 155

Number 4056

THE COMMERCIAL &
FINANCIAL CHRONICLE

WarlEffort Unhampered /
By Recreation Says FDR
r

1

President

his

belief

Roosevelt
March

on

expressed

10

that

the

effort will be improved,

war

February Engineering Construction UpDue Largely To Federal Contacts
Major

healthy, recreational

suits, within
He

reasonable

issued

pur¬

1941.

to,

the

New

according

York

Federal

"Times":

:

ever

public construction 98%

;

their

utmost

prosecution

to

of

the

and

war

considered to be harmful to

are

the

prosecution

>It

is, of

the

of

effort

war

the

war.

obvious that

course,

is

the

primary

task of everybody in the nation,
All
other
activities * must
be

•

considered secondary.
Such recreation may come by

participation in, or attendance
at, various sports, motion pic¬

ture, music, the drama, picnics,
etc.

All of them have

a

sary and beneficial part

neces¬

in

pro¬

moting an over-all efficiency
by relieving the strains of war
and

large

gatherings,

must

depend

conditions

the

safety

moment.

reasonable

believe that the

course,

local

on

of

Within

of

of very

limits,

I

effort will

war

be

not

hampered, but actually
improved, by sensible partici¬
pation in healthy, recreational
pursuits.

It must

be

borne

in

mind, however, that "recreation
as
usual," is just as bad as
"business

..

usual."

as

Recreation

under present conditions can be

undertaken solely with the pur¬

of

pose

building

mind

and

with

:

body and

up

the

chief

thought that this will help win
the war.

\

Increase

Army-Navy Pay;
Repeal Congress Pensions
President

Roosevelt

signed

on

March 9 the legislation repealing
the law permitting Congressmen
to

obtain

The

Government

pension

cluded

Navy

as

authorizes

base

serving
limits
also

pay

outside

of

the

United

States.

while

duty

on

~

\

for

enemy

or

foreign military
those captured by
interned in a neu¬

Private
Public

and

of March

issue

•

gains

New York City.

Broadway,
The Wage-Hour

Division

of several Gov¬

one

ernment
remove
room

the

agencies called upon to
from Washington to make

for workers connected with

war

President Roose¬

effort.

velt named Mr.

Hour

Walling

Administrator

Wage-

as

on

Feb.

26

and the Senate confirmed the nom¬

ination

tinue
as

to

on

Mar. 5.

serve

He will con¬

in his old position

of the Public
Division of the Labor

Administrator

Contracts

,

Department but announced that
will try to integrate the ser¬

he

vices of the two divisions.




of

(4 weeks)

$628,780,000
51,121,000

$634,823,000
69,284 000

^ \ 577,659,000
<,

565,539,000

80,559,000
497,100,000

39,352 000

<

526,187',000

.construction

\

^
the

of

six

their

over

Period

geographical sections of the nation registered

1941

two-month

totals.

Far

West

was

64%;

up

February, 1942, averages compared with those for the corre¬
sponding month last year revealed increases in public
building,
170%; bridges, 7%; waterworks, 78%; earthwork and drainage,
80%; and unclassified construction, 19%. Decreases were in streets
and roads, 62%; industrial
buildings, 49%; commercial building and
large-scale private housing, 50%; and sewerage, 53%.
Comparisons with January, 1942, averages showed gains in pub¬
lic buildings of 71%; industrial
buildings, 110%; commercial build¬
ing and large-scale private housing, 29%; waterworks,
81%; and
unclassified

construction, 1%.
Losses were in streets and roads, 42%;
bridges, 35%; sewerage, 19%; and earthwork and drainage, 64%.
Geographically, February averages exceeded their last year's

Production

Received
Tons

Orders

'

•

Tons

Percent of Activity

Remaining

-

Tons

Current

1941—Month of—

January
February

673,446

___

March

'.

April

2

629,863
548,579

337,022

82

726,460

447,525

83

656,437

602,323

488,993

84

659,722
>\:T

December

261,650
:

608,995

642,879

81

509,231
:■

807,440

.

88

737,420

649,031

86

'

576,529

94

630,524

578,402

839,272

831,991

568,264

,94
.V, 99

640,188

649,021

554,417

98

760,775

530,459

93

102

>V

743,637

■

Cumulative

75

571,050

634,684

November

»"

857,732

509,231

October

202,417

-

652,128

August

September

;

608,521

July

1942—Month of—

January

673,122

668,230

February

528,698

640,269

665,689

493,947

101

■

1941—Week Ended—

Aug.

159,844

159,272

"

V

572,635

>

174,815

159,894

587,498

91

169,472

162,889

92

Aug.

592,840

158,403

162,964

584,484

Aug.

94

157,032

163,284

576,529

■

t

'

93

Aug.
Aug.

:

83
83
83

V

83

97

84

Sept.

147,086

133,031

591,414

Sept.

80

84

164,057

166,781

589,770

98

Sept.

84

176,263

m166,797

583,716

Sept.

155,473

163,915

578,402

98

176,619

168,256

582,287

100

85

159,337

164,374

575,627

99

85

167,440

Oct.
Oct.

Oct.

•99 VP

84

85

165,795

574,991

98

86

165,279

168,146

568,161

100

86

170,597

165,420

Nov.

568,264

99

169,585

:i59,860

576,923

97

Nov.

86

156,394

165,397

570,430

99

87

145,098

160,889

550,383

96

Oct.

Nov.

Nov.

South, up 61%; west of Mississippi, 41%; and Middle West, 3%.
New England and Middle Atlantic were 32 and
7% lower, respect¬
ively, than a year ago.
'
<

;

86

P.,

87

Nov.

169,111

164,875

554,417

Dec.

181,185

166,080

567,373

Dec.

149,021

163,226

553,389

101

88

Dec..
Dec."

149,874

166,948

535,556

101

88

116,138

124,258

523,119

76

88

147,419

140,263

530,549

86

1

-101

*

87

102

87

1942 —Week EndedJan.

3——10

Jan.

162,493

166,095

527,514

101

Jan.

17—

167,846

165,360

525,088

102

Jan.

24———^

161,713

169,735

514,622

101

—

31

Jan.

Feb.

7

Feb.

14

;

181,070

167,040

528,698

101

162,894

168,424

522,320

101

156,745

167.424

Feb.

21—..—x——

157,563

165,240

Feb.

28—

163,067

164,601

177,823

165,081

„

7—

Mar.

V.

88
102
102
102

"

;

v

510,542

101

496,272

102

493,947

100

505,233

101

102
102

102
102

•

101

Note—Unfilled orders of the prior week plus orders
received, less production, do not
necessarily equal the unfilled orders at the close. Compensation for
delinquent reports,
orders made for or filled stock, and other items made
necessary adjustments of unfilled
orders.
■

PmP. V,

:•

■

marks in four regions.

South climbed 47%; Middle West 51%; West
Mississippi, 85%; and Far West, 192%.
The latter three areas also
recorded gains over their January, 1942 totals.
Middle West in¬
creased 81%; West of Mississippi climbed
114%; and Far West jumped

February Pig Iron Production At 96.4%

of

199%.

'

*

'

-

-

-

New

.

4

,

Capital

-

-

,

•

,

'

New capital for construction- purposes for
February totaled
$812,549,000, an increase of 39% over the Volume for the corre¬
sponding month last year.
The month's new financing was made
up of $791,955,000 in Federal appropriations for military and naval
construction, $13,798,000 in state and municipal bond sales, $4,267,in

000

corporate

security issues, and $2,500,000 in RFC loans for
expansion, and $29,000 in RFC loans for public improve¬

industrial
ments.

New construction

than

more

month

doubled

period

in

financing for the

the

March

12

issue

of

"The

ruary

was

totaled

96.4%

of

.

capacity, compared with 97.7%

in January.
on March 1
producing at the
160,360 net tons a day compared with 217 in blast on Feb. 1
with a production rate of 159,270 tons.Among the furnaces blown
in during the month were those of the Columbia
Steel Co. and the
There

were

220 furnaces in blast

rate of

Globe Iron Co.
IRON

to date, $1,372,463,000,

Insolvent National Bank Dividends
Comptroller

of

the

Currency,

January

February

——

MADE.

Delano, announced on
March 10 that during the month ended Feb. 28,
1942, authorizations
were issued to receivers for
payments of dividends to the creditors
of nine

insolvent national banks.

total

Dividends

authorized will ef¬

so

of $1,816,800 to 66,291 claimants who have
aggregating $22,931,800, or an average payment of
Comptroller's announcement added:

minimum

and maximum percentages of dividends au¬
were^2.00% and 9.9%, while the smallest and largest
payments involved in dividend authorizations during the month

thorized

$12,900 and $830,100, respectively.

thorized during the month
dend

payments

1942,

were

DIVIDEND

were

authorized

so

during the month

PAYMENTS

1939

1938

20,812

16,475

11,875

11,911

22,052

21,254

14,773

10,793

23,069

11,760

10,025

9,547

20,434

13,656

9,529

9,266

TO

CREDITORS

DURING

:

v

THE

of Bank—

Federal-American
Bank

&

ington,
The

Trust

D.

Co.,

The

Bowmanville

National

First

City

Bank

National

Bank
The

&

of

First
All

Bank

'

•' -v

•-'/

31,

1942

of

Total

of Funds

Authorized

Date

by Dividend

Dividends

Claims

Authorized

Authorized

to Date

Proved

Amount

11,225

7,403

12,648

12,550

91,500

47.25%

1,262,000

54,400

85.56%

1,527,200

2-2-42

38,200

67.65%

821,600

16,409

12,095

December——i—.———...

23,567

19,779

16,642
16,912

10,266

-Pig Iron
1942

January__
February.

4,458,273

173,300

71.425%

1,941,400

38,400

96.38%

990,300

; 2-26-42

109,000

1/

4,197,872

42,832

57.62%

6,155,000

35.7%
"■

35,337
33,627

55,460
56,871

May

4,599,966
4,553,165

53,854

June

Half-year-

58,578

27,053,100
4,770,778
4,791,432
4,716,901

293,727

October

4,856,306

November

55,495

4,702,927

December

47,669

5,012,276

48,188

55,903,720

539,163

July
September

Year
x

,

These

totals

do

not

include

AVERAGE

charcoal pig iron,
PRODUCTION

Net

January
February
March!

X

May

_

i

OF

y

;

57,710

52,735
46,932

Included in pig iron figures.

COKE

PIG

IRON.

-1941•

%

Capacity

Net
Tons

.

&

1940

%

Capacity

Net
Tons

,160,340

97.7

150,441

95.5

130,061

159,188

96.4

149,924

95.2

114,189

151,745
144,475
148,386

96.9

105,500

91.8

104,567

93.8

113,345

151,772

95.9

127,297

149,465

94.5

115,844

July

153,896

97.1

130.772

August

154,562

97.5

September

136,711

157,230

99.2

156,655

98.2

139,218
143,419

156,764

97.7

146,774

161,686

101.2

146,697

153,161

96.6

128,278

November

1,253,400
f

y-

1941

4,704,135

December™
,

36,455

4,334,267

October
-

1942

March

Half-year'

2-13-42

■

-Ferromanganese

4,663,695

April

613,000

2-11-42

964,000

x-

1941

4,970,531

April

77.0%

14,793

PRODUCTION OF COKE PIG IRON AND FERROMANGANESE—NET TONS

June

12,900

17,571

7,203

18,694

Tons

2-3-42

2-17-42

2-14-42

!

17,395

22,578

7,883

22,792

$8,367,900

of

dividends are final.

6,154

-1942-

84.9%

$830,100

National
Bank

6,020

9,404

22,690

DAILY

Ionia,

Jackson, Mich
National

8,527

16,619

_

of

Mich.

Bank

Pa.

•'*

ENDED JAN.

BANKS

Percentage

2-24-42

Peoples

Masnnt.nwn.

•'

NATIONAL

of

Mich.
Union

INSOLVENT

of

111.
National

Birmingham,
The

Bank

1

National

Wilmette,
The

28,

of

111.

First

13,662

23,243

National

Vernon, 111.

Ottawa,
The

ended Feb.

Distribution

2-14-42

Bank of Chicago, 111—
Third National Bank

16,521

21,933

November..

Wash¬

C

21,235
21,957

21,803

...

9,916

October

National

The

Mount

OF

MONTH

:

Name and Location

•

August

-'J-

-

au¬

TONS

1940

Divi¬

follows:

as

AUTHORIZED

'..."

All nine dividends

final dividend payments.

RATE—NET

1941

—

distributions

The

V

April
May———
June——
July———!
—.——Li._—».
August
!
September
;—„

DAILY

1942

20,085

.—

Preston

Iron.

Age" reported that coke pig
4,458,273 net tons in February compared
with 4,970,531
tons in the previous month.
Output on a daily
basis last month decreased slightly to
159,188 tons from 160,340
tons a day in January.
The operating rate for the industry in Feb¬
production

MERCHANT

year

$679,111,000 reported for the opening two1
's

1941.

The

iron

March

assumed his duties at the bureau's

was

volume

Feb., 1942

MILL ACTIVITY

Unfilled
Orders

June

1

.

"(5 weeks)

in the two-month period accounted for $735,of the 1942 volume, and were 80% above last
year.

57%

or

ings.

5,

1560

"'Jan., 1942
„

In addition to public
buildings, the main factor in the gain, earth¬
work and drainage jumped
516%, unclassified construction climbed
24%, and waterworks rose 29%.
All other classes of work fell
below their respective totals a
year ago.
These declines ranged
from 43% in bridge construction to 65% in
private industrial build¬

Walling, newly-ap¬
pointed
Administrator
of
the
Wage and Hour Division of the
U. S. Department of Labor, has
at

r

137,920,000

tremendous

854,000,

L. Metcalfe

offices

Jan¬

Public buildings

were

new

the

begun
during the
opening two months of 1942, $1,263,603,000, is 25% greater than the
previous mark established during the period in 1941.
Federal
work, which made up 81% of this total, was 118% higher than a
year ago and was responsible for the 64% increase in
public con¬
struction as the state and municipal total
decreased 47%.
Private
work, $120,405,000 for the two months, declined 62% from the
$312,599,000 reported for a year ago.

re¬

Walling Assumes Duties

month

a

three months by
"Engi¬

193,960,000

The

The

our

the

286,349,000
92,389,000'

Federal

;

7.92%.

in
page 960.

Feb., 1941

municipal

claims

ported

for

$424,269,000

construction

State

fect

was

above

y

STATISTICAL REPORTS—ORDERS,
PRODUCTION,

May

construction

proved

Act

and 22%

ago

February, 1941.

•

„

Congressional
repeal
of
the
pension provision of the Civil
Retirement

year

reported

construction

tral country.

Service

a

(4 weeks)

Total

It

active

and

industry.

near-

are:

while they are
the
continental

provides for continuing pay
persons
reported
missing

for

the

of non-commissioned
a
10% increase in of¬

and

ficers'

in¬

ArmyThe bill
increase in the

20%

a

pay

men

was

to -an

increase bill.

pay

base

pensions.

repealer
rider

a

the

second

neering News-Record"

Four
occurrence

over

Construction volumes

work.

The actual

for

highest peak.
Private work exceeded
weekly average by 70%, but was 50% below

uary

help in the

wonder whether such activities

primarily responsible

~

Most of these letters point out
that the writers are anxious to
do

its

to

ago

various sports,
dramatics, concerts, vacations and general re¬
creation and amusement during
"the war effort.

was

The members of this Association
represent 83% of the total in¬
program includes a statement each week from
each
member of the orders and
production, and also a figure which indi¬
cates the activity of the mill based on
the time operated.
These
figures are advanced to equal 100%, so that
they represent the total

dustry,' and its

volume, climbing 171% over the average for the month last
and 32% over last month, to reach the second highest
average
registered.
The stepped-up pace of Federal work boosted

year,

attitude of the Federal Govern¬
ment toward the continuation of

J

construction

rWe give herewith latest figures received by-us from the
National' "
Paperboard Association, Chicago, 111., in relation to
activity in the paperboard industry.

record

Many people have written to
the Executive Office
asking for
some statement of the general

.

The

current
average
topped all previous February marks
to "Engineering News-Record" release dated March
12,
and was 50% higher than the
corresponding 1941 month, and up
26% compared with January, 1942.

limits."

the

advises

in

ond

following state¬
ment, it is learned, from Washing¬
ton

construction

February reached $634,823,000, and averaged $158,706,000 for each of the four
weeks, sec¬
only to the record average of $191,733,000
reported for'July,

not

hampered, by "sensible participa¬
tion in

engineering

1159

Year™

-

—

Thursday, March 19, 1942

& FINANCIAL CHRONICLE

THE COMMERCIAL

ii6a

Total Loads

Revenue

Ended March 7, 1942
Lumber

ended

week

3%

production
March

than the

less

the

during

1942, was

7,

Loading of revenue

previous week,

770,697

shipments were 7%
less, new
business, 2% less, according to re¬
ports to the
National Lumber
Association

Manufacturers

from

regional associations covering the
operations of representative hard¬
wood and softwood mills,
Ship¬
ments

tion;

12%

were

new

duction.

produc¬

above

orders 14% above pro¬
Compared with the cor¬

responding week of 1941, produc¬
tion was 6% less, shipments, 8%

greate^,
less.

business

10%

The industry stood at

138%

and

new

of production in
the corresponding week of 193539 and 144% of average 1935-39
of

the

average

shipments in- the same week.
Year-to-Date

Comparisons

the

for

production

Reported

first 9 weeks of 1942 was 4%

be¬

corresponding weeks of 1941;

low

shipments
shipments,

2%

were

the
6%

above
orders

•

freight for the week ended March 7, totaled

Atlanta,

Birmingham & Coast-———
Coast

Central of

.

-

'

...

Durham

above

483

to

unfilled orders

ratio of

The

stocks was 47% on March 7,

gross

1942, compared with 36% a year
ago.
Unfilled orders were .18%
greater than a year ago; gross
stocks

8%

were

and

for

the

Record

ended March

corresponding week in 1941.

7, 1942, for the cor¬

All districts

ported increases over 1940.
1942

1942

Production

„

Shipments

—

442

442

223,505

236,722

467
231,032

250,511

232,759

269,398

255,503

282,929

260,607

Orders

364

Mills

Production,

212,874—100%

Shipments,

239,960
243,877

Orders

REVENUE

$334 Million For Civil

J
Of War Dept.

Functions
The House

a

March 11 passed

on

appropriations bill
Department's civil
including large sums

$33,950,826

for

the

War

functions,

for the Panama Canal and for es¬
sential flood control projects.
action

came

This

after the House voted

the

starting

for

funds

against

Table Rock Dam in Missouri and
after

rejecting

$16,700,000 item

a

for initial construction of the Bull

Shoals

Dam

is

It

in Arkansas.

that the two

said

projects would

ultimately cost $87,000,000.
The

to the Associated Press:

3,465,685

742,617

620,596

projects already under way.
$107,516,810 for the Panama
Canal, including $56,826,800 toward continuing construction of
third set of locks.

Ann

—-

Detroit

improvement

and maintenance

of rivers and

6,939

& New

Valley

Maine

Central

6,745

6,456 v

4,841

8,804

9,756

9,020

9,609

63

2,432.

&

Salt

Lake

Akron,

—

signed

at

Washington

March 11 by Acting

102

182

238

171

2,481

1,548

2,007

...

Sumner

State

Peruvian

Wellds" and

...

,

y

Santander.

The amount of arms

armament

American

for

republic

the

was

closed.




South

not dis¬

201

1,654

Coast

y

______

Louisiana &

a 3,773
4,998

(Pacific)

4,132

3,261

4,331

449

276

2,060

1,478

41

41

44,109
11,964
1,176

46,829

37,116

52,121

47,028

10,917
1,116

9,184

19,179

14,338

2,708

2,056

6,970

5,643

5,026

1,567

2,723

93,380

83,861

20,929

"17,826

17,256

8,769

7,234

3,426

3,349

2,530

3,436

: 2,644

588

458

511

106

16,288

16,225

13,728

10,755

440

408

1,669

1,900

7,993

5,636

6,949

7,045

5,173

6,332

5,804

6,489

6,812

♦808

780

868

1,855

•

:•••

63,119 jr 52,880

72,803,

.,!

>■

2,807

2,765

11,667

10,597

2,882

2,961

2,487
715

? 3,161

2,486

2,080

642

491

287

969

928

889

.

11,680
3,162

9,918
yy y

726

892'"

158

9,514

A

711

2,120

10,277
3,293

;

-

:

1,577

:

798

1,573
3,142

4,381 :
A

..

12

10

•

988

1,747 :;.;■ 1,758
739
;
750
1,584
1,955

2.063

1,096

2,002
y 971

v;;y 642

20

6

27,926
Av, "267

23,529

.

y

9

20,790
A
260

14.422

13,317

'

:•

159

;

415

.;

o
"

-

o

6,168

9,158
" .1,115
11,527-;

.(

534

!

130
509

458

,337

"

15,504

Ay

1,577

1,601 :s>
576 V

1,440

.,552

9,101

485

Island.—L—_i—

A

,

•

93,210

73,350

152

A A 255

151

3.773

5,273

————a..

2,319

Northern——

.;

—————

1,746

926

1,067

2,811

2,349

1,998

1,557

1,944

1,725

365

A 999

508

234

177

433

:

648

-v

.

•

4,135

3,726

15,020

12,506-

.75

;

7,919

3,085
3,874
101

Wichita Falls & Southern——..——.„
Weatherford M. W. & N. W,_.

Total

—

♦Previous

...

■A"A;
i

——

figures.

Note—Previous

-/
,

138

.!

61,544

144

5,510

5,878

3,358

v

3,880
26

51,796

45,905

'

3,829

»

4,528

6,395 .,'

•; "

t

■

4,554
:

»

130

.

14

20

3,141

10,921'

199

6,735

v

357

3,970
14,'769
7,621

6,978
-

1,046

"

;'A' 209

79

3,633

-

8,994

■

2,335

2,453
■

Orleans...—

+

6,523

-

'

/

■

'

'■

136

-

218

A

349

186

88

Pacific

2,434

1,999

8,754
'

153

1,695

^

2,369

4,955

:

2,954

-

V 183

15,919

*

Francisco-—;.———.

New

61,331

308

i

•

Lines..

St. Louis Southwestern

*■;

,2,571 A.

3,243

,

1,824

,

2,713
"A 291 '

L

Arkansas...—

2,195

.

3,701

;

:

.

Arkansas—

3,151

'

,103,960:

3

6

*

1,394

1,393.

;

i

.

.

330

337

;

^

.

5,763

Buffalo
Cambria

Ohio—

&
&

Creek
&

Erie

Lake
&

;

Gauley—.

Indiana——.

Central R. R. of New Jersey

.

Cornwall

Pennsylvania—

&

Seashore

Pennsylvania
System
Reading
Co
Union
(Pittsburgh).
Western Maryland

-

Total

30

42

308

296- '

2,031

♦2,017

595

569

1,185

1,157

5,979

4,948

11,491
3,937

11,046

:

;

38

112

56,588

42,639

-■

year's figures revised.

Latest Summary Of Copper Statistics

;

4,732

4,383

162,861

168,753

3,429

The Copper Institute on Feb, 13 "released the

following statistics
pertaining to production, deliveries and stocks of duty-free copper: '
SUMMARY

3,972

OF

STATISTICS. REPORTED

COPPER

/

,;

137,790-217,943 -195,183

OF

MEMBERS

BY

;

institute

THE COPPER

;

.

vI

;

—r-——

1935. j—

37,307

28,064

24,909

19,809

Year

38,216

1930—

731,629

748,660

3,359

3,604

2,564

1,469

1,750

Year

1937—

982,045

964,176

803,095-.

♦311

277

.267

♦5

5

Year

1938

644,869

638,076

481,803

1,400

<

8

■

,

10

Year

836,074

6,325

18,263

14,040

Year

1940

992,293

1,033,710

1,001,886

603

587

642

-62

64

Year

1941

1,016,996

1,065,667

1,545,541

293

321

274

31

33

Jan.,

1941

109

170

132

40

31

Feb.,

1941

731

480

3,755

2,864

Mar.,

1941—

,

-

—

83,280

93,840

119,736

79,240,

93,654

112,808

85,701

95,322

134,333"

1,337

1,004

2,162

1,741

Apr,,

1941..

88,042

89,687

123,580

77,038
15,685

73,714

54,961

57,526

49,546

May,

1941

90,342

89,390

-148,30L

16,390

13,747

27,158

21,879

June,

82,558

88,560

1 21,33 1

19,643

19,993

14,242

3,864

3,874

July,

—

82,099

3,831

3,973

3,387

10,789

8,235

Aug.-,

1941
1941
1941

—

84,695

86,879
85,426
-81,553
86,617
84,799
89,940
90,017

150,078
119,937

81,724

107,616

•

172,275

167,998

127,911

151,073

124,934

Sept.,
Oct.»
Nov.,
Dec*

21,161

25,236

21,689

10,052

10,226

19,254

22,478

17.94&

6,019

6,440

3,545

4,632

4,073

2,217

1,798

1941
1941
1941___—
1941
1942___1_'
1942.....
...

43,960

52,346

43,708

18.288

18.464

.

814,407

7,263

81,839
86,019
84,718
88,463
t88,205
80,303-

„

!

"

125,585
126,622
124,645
138,585
130,467

—.

144
-J

.

—

*
.

—

—

,

.

+ 8,916
+952
—5,713
—6,002
+ 5,088
—4,780 —23,780
—731 > —2,45A
+286. —8,260
—593
+3,590

—1,645

'"'71,930
63,670
67,260
: 72,352
75,564

*
-

—17,031 —-70,347
+ 17,869
+98,283
+ 6,793 , + 30,404.
+ 17,785 —130,270
—41,417 -^16,712
—48,671 —67,208
—10,560 -r-25,918
—14,414 —19,165
—9,621
—7,816

101,068
259,351
289,755
159,485
142,772
75,564
116,854
97,68989,873

98,789

42
33
-

—

93,070 *
98,164
74,384

—

(—)
Refined

Blister

231,415

,

.

or Decreases

(• End of
Period

-49

'

i'

Stock Increases ( +)

—81
—1,477
—$1,812
—1,421

81,371
77,329

.

+5,092
+3,212
+5,807

—4,042

custom intake .Including scrap.- (. .
consignment apd in exchange warehouses, but not including con¬

♦Mine ok smelter production or shipments,, and
tAt

refineries,

sumers'

stocks

on

at

their

plants or

SBefirirmmf* March, 1941,

Total

818,289

1,765

7,840

,

54,447'62,798
125,869
134,152
48,537
307
22
11
'
6

764,560 •

-1,854

Feb.>

—

1939

•

Stocks

•

Export
^

Year

District—

Norfolk & Western

Customers

§Domestic

1,053

Jan,',

Virginian

-;

Refined

1,032

928

;—

Production*Crude

422

1,840

Lines-

;

Copper

tRefined

Deliveries to

586

■

..

'

725

i—

Pocahontas

61

;

-

38

13,148

14,664.

551

7,827

483

•3.987
A'- 278

309

2,328

1,748

Lines

Louis-San

St.

2,344

2,466

386

2,824

2,749

Quanah Acme & Pacific—.————

3,858

2,206

616

62

v

2,128

v

107

' ■■;;/•■

Pacific..————ii———i

&

6,093

412

73 ;

9,207

.

:

Missouri &

&

3,482

416

'

'

'Valley———i———■■ :.AA i 478

Midland

Texas

5,975

534

685

2,337

;4,611

*

Litchfield & Madison..—

Texas

-

123

■3,471

.

97

City Southern..—

9,736

1,013

440

8,930
<•'

968

-

9,448

A !,

Kansas, Oklahoma .& Gulf
Kansas

14,921

3,167

:

;

5,043

A: 116,454

8,873

7-

-218

4,509

r

5,815

;

;

Free

Chesapeake & Ohio_._

and

241

1,613

3,703
■

10,521 f
v'"' 152

■

10,400

Pacific——;

3,377

.

644

-

315

2,324

1,230

& Pekin Union..

16,191

292

11,1624,627
.167

the

Freyre

Ambassador

447

—

Pacific.__^_

Peoria

4,264

8,634

on

Secretary of

9,908

537

Northern
Western

Missouri-Kansas-Texas

3,120

_

was

10,231

584

-

Missouri

283

"507

Canton & Youngstown_.

Baltimore

Penn-Reading

be¬

12,140

:r,'.81

City___;._.

North

U.S. Duty

Ligonier Valley
Long Island

agreement

6,457
;A. 359

_______

8,291

10,010

•

Cumberland

States and Peru

423

Y+

& Rio Grande Western.

9,736

District—

Allegheny

Home in Washington.

lend-lease

.,9,764

9,132

.

'

'

—

Bessemer

A

523

,

8,137

& Lake Erie—

at the Fort Peck dam.
$4,166,000 '■ for
hydroelectric
power at the Bonneville dam.
$967,531
for
the
Soldiers'

tween the United

674

.

539

.

Southwestern District—

9,212

—

North
& West Virginia—

Commission.

Lend-Lease Aid For Peru

594

3,265

4,232
462

'

.

Denver

Gulf

$227,840 for the Alaska Com¬

:

788

%

4

power

1,229

„_

Illinois......

Eastern

Buriington-Rock

2,063

—_—

Total

$832,345 for burial expenses.
$1,300,000
for
hydroelectric

3,252

(In Tons of 2,000 Pounds)

harbors.

munications

3,662

11,779
:

'

8,684

__L———i———

Wheeling

4,120

'

Denver

Western

1,433

Pittsburgh & ShawmutPittsburgh, Shawmut &
Pittsburgh

3,448
10,037

10,081.

Utah

1,640

Louis—
Western
—■
& Lake Erie—
—

Rutland

2,265
17,544

.

Peoria & Western_^________
Union Pacific System-__________.___

1,633

Chicago & St.

Marquette

2,443

Garfield..;

&

...>

20,757

r 791

Toledo,

2,439

-

796
950

:

86,537

2,835

—

District—

Western

&

Nevada

1,699

Y., Susquehanna &

Pittsburgh

14,333

•

21,579

Missouri-Illinois

1,983

■

Y., N. H. & Hartford
New York, Ontario & Western—-—

Pere

2,358
59

416

——-

N.

N.

I

2,501
12,571

6,188
; 194

■

Central Lines—

York

14,109

18,532

•

.'12,597

15

202

Monongahela
New

15,812

Illinois Terminal

16,080

1,259

14,219

England

Lehigh

17,798

Colorado & Southern...-

197

21

365

Hudson River

&

Lehigh

100,455

'

1,538

1,298

4,509

Western—

Lehigh

99,269

Chicago, Rock Island & Pacific

216

■

23

13,518

Toledo Shore Line—

&

Trunk

113,903

Burlington & Quincy.__.___

Chicago

1,512
•';

—

——;————-—

Grand

120,223

:

Bingham

1941

.

1,397

-

Erie

•

—

International-Great

1,317

1,320 ,v

1,594

Ironton—___—

&

Toledo

Detroit

1942

569

-

8,282

—

Mackinac

&

Detroit,

517

.

8,006

Lackawanna & Western—

Delaware,

958

'

Hudson

&

153

Atch., Top. & Santa Fe System______

Total Loads

1940

1941

1,948

Vermont

Delaware

;>■;'. 144

.

Total

Connections

2,057

Indiana—-——:—

Central

124

Atlantic.—__

Alton

i

R .v.nt'U iiulll

2,314

Indianapolis & Louisville—

Chicago,
Central

MARCH 7

.

& Aroostook—
Boston & Maine

: /y

__

International— !___"_j
Spokane, Portland & Seattle^

6,301,846

Total Revenue

639

Arbor

Range

Spokane

Port Worth & Denver

Freight Loaded
1942

Bangor

Wabash

for

$57,502,500

CARS)—WEEK ENDED

Eastern District—

New York,

$161,437,800 for flood control

a

2,866,565

770,697

v;A .-AAA

Railroads A

'

,

Montour

which now goes
Senate, included, according
measure,

to the

Northern Pacific

.3,215,565

RECEIVED FROM CONNECTIONS

FREIGHT LOADED AND

OF

853

Minneapolis & St. Louis.. —
Minn., St. Paul & S. S. M.__

table is a summary of the

(NUMBER

!

& Iron

Green Bay & Western..

1940

3,122,773

"6,540

7,220"
21,239

402

:___

Chicago & Illinois Midland-.^

1941

7,063,591

9,657

•

3,454,409

7,751,743

.'

9,895

Northern—

Great

of 355 cars below the

1942

1,590
r 5,706

1,241

'

20,733

Elgin, Joliet & Eastern
-+--Ft. Dodge, Des Moines & South-

freight carloadings for
the separate railroads and systems for the week ended Mar. 7r 1942.
During this period 85 roads showed increases when compared with
the corresponding week last year.
-A..
:

99
109

10,551
11,626

Missabe

Duluth, South Shore &

of 691 cars

3,858,273

1,148

1,281 C

383
296

513

Western.._

Southern Pacific

10,631—100%

113
115

—_

!

4

359

10,283

"Chicago .St. Paul, Minn. & Omaha—

Chicago,

7

The following

93

-

Great

Duluth,

>

Total

1942 Week

1942 Week

February-—c

March

of

Week

3,389

District—

Chicago, Milw., St. P. & Pac

Central

«.

> 403

3,652

1,070

480

-

596

412

24,178

:

——————

Chicago

V.//'1: 'AV:A.v'Aa

January

weeks of

Four

Hardwoods

Softwoods

:

Previous

1941

Week Wk. (Rev.)

Week
Mills

of

weeks

Five

2,816 :'

1,088
V

>'■

7,232

696

-

586

Chicago & North Western.—

,

and Hardwoods

Softwoods

131

9,858

Central

Northwestern

the corresponding
the Eastern and Pocahontas. All districts re¬

thousand board feet:

1941 except

in

139

171

3,198
13,398
.,

23,097

■

System.———

Total

reported increases compared with

week

146

3,045

;

495

444

Lake Superior & Ishpeming—

corresponding week in 1941.

responding week a year ago, and
for the previous week, follows in

_

Northern.———C——.

of 739 cars above the

preceding week, and a decrease

the

below

week

current

A

13,341 cars, an increase of 488 cars

to 13,7-34 cars, a decrease

loading amounted

Coke

Hardwoods

to

preceding week, and an increase

the

above

less.

Softwoods

loading amounted

Ore

24,423
V

3,472

.

"

'

corresponding week in 1941. J

the

19,430

9,071

Winston-Salem Southbound-

•

-

14,640

1,116 ;

week, but an increase of 4,752 cars above

below the preceding

cars

'

574

3;328

•

114

'J, 1,999

571

20,601

23,903

.1 1,001

*

.2,667

297

22,508

165

_——_

684

;

134.

.3,771

Norfolk

Tennessee

1,205

30960 V

,

3,880

i.—

Richmond, Fred. & Potomac———
Seaboard Air Line—.—,

1,105

329

'

27,997
186

Southern

252

414

;

1,791!
3,042

2,501
'

331

—_

—

3,695

147

1,078

,

3,366

43,137 cars, a decrease of 2,191

products loading totaled

Forest

Supply and Demand Comparisons

corresponding week in 1941.

above the

cars

production.

34

Nashville, Chattanooga & St. L._——

of 775 cars above
and new
above
the
orders
of
the
1941 the corresponding week in 1941. In the Western Districts alone, load¬
period. For the 9 weeks of 1942, ing of live stock for the week of March 7 totaled 7,830 cars, an
new business was 25% above pro¬
increase of 392 cars above the preceding week, and an increase of
duction, and shipments were 14%

1,141

6,686

3,890

1,537

343

-

149

9,200

1,341

171

V

1,217

>

-

Li- ,381

Nashville..A--__A

&

Southern

-

402

31

Dubin & Savannah

Piedmont-

v

3,975

2,291

—--r

Mississippi Central

preceding week, and an increase

above the

cars

,

Central System—

Macon,

9,714

438

.170

—

•

4,474

—i

—

Louisville

1,176

302

Georgia
1—
A...——__
Georgia & Florida.:
•
Gulf, Mobile & Ohio—
Illinois

1,819

1,168

V

368

,

2,101

547

11,383

13,012
4,271"
•

774

708

1,625

Gainsville Midland

1941

"

v

841

241

Southern—

&

•

i;i76

Florida East Coast

freight for the week of March 7 decreased
10,722 cars or 1.4% below the preceding week.
'
Miscellaneous freight loading totaled 357,518 cars, an increase
of 2,598 cars above the preceding week, and an increase of 38,880 cars
above the corresponding week in 1941.
Loading of merchandise less than carload lot freight totaled
148 519 cars, an increase of 4,977 cars above the preceding week, but
a decrease of 10,391 cars below the corresponding week in 1941.
Coal loading amounted to 145,373 cars, a decrease of 17,127 cars
below the preceding week, and a decrease of 13,563 cars below the
corresponding week in 1941.
Grain and grain products loading totaled 38,356 cars an increase
of 1,005 cars above the preceding week, and an increase of 7,243 cars
above the corresponding week in 1941.
In the Western Districts
alone, grain and grain products loading for the week of March 7
totaled 24,349 cars, an increase of 668 cars above the preceding
week, and an increase of 5,717 cars above the corresponding week
in 1941a^aca^:Aa'■'a-a'a av'
Live stock loading amounted to. 10,689 cars, an increase of 219
Loading of revenue

679

—

Columbus &

1942

>

-

> 423 "

Greenville—,1

Clinchfield

»

257

268

273
896

Western. Carolina———

&

1940

'

":'5>

!

Georgia——:

Charleston

;

;

'

!■

Line

1941

:

■

>

.' Received from
Connections'

Freight Loaded

1942

AA;A!:-

District—.;,; -'A^y-N.

Atlantic

150,101

and above the same week in 1940 was

Southern

Alabama, Tennessee & Northern—
Atl. & W. P.—W. R. R. Of Ala.——.

the Association of American Railroads announced on
The increase above the corresponding week in 1941 was

28,080 cars or 3.8%,
cars
or
24.2%.

1.14h~? > Tdtai Revehue
-

cars,

March 12..

AA-AA;

Railroads

Freight Gar Loadings During Week
Ended March 7,1942 Totaled 770,697 Gars

Lumber Movement—Weel

warehouses.

includes deliveries of duty

consumption.
JCorrected.

paid foreign copper for
,

•

.

.

.

•

-

, i

domestic
'

Volume 155

FHA-lnsured
The

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4056

■

The rate of increase in retail prices of coffee has been slowed
during the past two months subsequent to the ceiling set by the
Office of Price Administration on
green coffee.
Prices of tea, how¬
ever, have continued to advance sharply, as the war. in the South
Pacific affected sources of
supply to an increasing extent.

Mortgage Activity In 1941 At Peak

Federal

Housing Administration announced on March 15
that lending institutions operating under the FHA program origin¬
ated

210,004 small home mortgages amounting to $940,892,100 under
Section 203 (Title II) of the National Housing Act in 1941.
This

retail stores

The number

ations

in

-V •■•+./7'.:7'77--f ■'
1941
;
$222,234,700
/
191,102,250

banks

1,513 State banks and trust companies
241

Mortgage

216

Insurance

782

Savings

companies
companies

and

___—-

All

4,281

224,281,360
123,810,650

7

__i——

associations.

loan

83,360,850

.+—:

others

1940
,

45,953,800

v

.

77

Total

These

figures,

the

says

Section

or

of Title

207

fresh vegetables are

:

•

Item-—

/■

FHA's

Potatoes

Pork

/:/"•. -vV'.;■///;'

_______

____

chops.,..

Roasting

chickens

__

Coffee

Milk,

-

which

FHA

of audit

insurance

for

terminated

was

in

and

in

mortgages

Section
and ratios, follow:

insured

amounts

under

203

260

i

'356

trust

Mortgage companies
Insurance

1,609 Savings
219

Savings

109

All

loan
banks

...

Percent
27.1

602,403,119
'.

•

.J

.+

'''!

25.4.+
8.2

-

205,566,800

6.6

360,449,566

11.6

$3,106,816,919

;

+ 10.3
+ 25.2

.9

+ 30.0

.7

+.31.2

.2

+ 13.6

0

+ 15.1

,

bread

milk

roast

■____

for

miles

steak

..

+ 11.5

+ 23.9
+

5.8

.5

+

9.6

9.1

+ 40.0

10.0

4.4

part of

situation
this

in

very

war

been

J-:.'..-;;

v.,v.;-,,.-

\

;

•

the
nec¬

that

large

a

rubber stock pile is

our

more

than

30,000,000 motor vehicles of the
country.
If this stock pile is
conserved
by
the
individual
motorists, as we are endeavor¬
ing to
conserve
the national

stock

pile, tires will last much
longer, cars will run much far¬
ther, and civilian life will be^<
less disturbed because of lack of

sufficient
ties.

transportation

//r■.. ;/>

facili¬

:.

uted to the higher costs.
Declines were reported amounting to
0.8% for Chicago and 0.5% for San Francisco, Denver, and Pitts¬
burgh, due largely to greater than average declines for fresh fruits

/

and vegetables.

Compared with a year ago, food costs on Feb. 17
Were higher by 27.6% in Mobile, 26.0% in
Springfield, 111., and
25.0% in Portland, Ore. The smallest advances in food costs
during
the year were 11.7% in Fall River, 14.8% in
Minneapolis, 15.2% in

when driven at limited rates of

St.

tage of the individual motorist,

Rubber

experts
agree
that
driving wastes rubber and

fast

that tires

run

miles

many more

speed.

May I suggest that this waste
could be curtailed to the advan¬

Paul, and 15.3% in New York.

and

commodity groups for Ae current
period and for Jan. 13, 1942, Dec. 16, 1941, Feb. 18, 1941, and Aug. 15,
1939, are shown below:
1 '
,<*
'
INDEX NUMBERS OF

'

RETAIL

of

likewise

to the advantage
country, if the speed of

the

all motor vehicles

Between
The

•*:'

•

All

Mid-January And Mid-February

7'■

*..■

v

;v V

•Feb. 17,
1942

porting higher food prices.
food costs at 116.8%

1935-39

to

limited

were

maximum of 40

a

=

hour

COMMODITY GROUPS

BY

On Feb. 17, the Bureau's index of retail

and

bakery

products

100)

and

veal

miles

Fish,

Dairy

per

88.0

109.2

111.8 '

108.1

99.2

98.8

your

110.7

107.3

100.5

99.6

94.6

achieve

157.7

1145.1

138.9

-•117.7

tl21.5

120.5

104.4

130.9

138.1

85.0

90.7

117.2

110.5

95.6

92.4

U19.0

111.0

96.3

92.8

117.7

Fats

114.6

___

_

_

oils

__

___

Sugar

...

•Preliminary.

of the 1935-39 average, was 19% higher than in

_

—

and

,7

118.0

•

Dried

their
repair
or,
where
possible,
retreading
at
the
proper time.

93.4

89.1

-

1121.8

117.2

: tii5.5

114.0

110.6

127.7

7 118.5

'

106.3

108.6

,

125.4

;

91.5
7

114.4

I

93.1

91.6

-

90.3

has been
has

81.1

84.5

96.0

95.6

The Bureau's announcement goes on to

report:

>

reversing the trend of previous weeks..

'

the market.

'

'

.

The advance of 3.5% in retail

'

'

"

large supplies
*

-

tRevised.

the

retail markets, as in wholesale markets, there were substan¬

in prices of canned fruits and vegetables preceding
price ceiling allowed on March 2 by the Office of Price Ad¬
ministration.
This applied to certain canned foods in the hands
of canners and wholesalers and indirectly to retailers. - During the
month ended Feb. 17 prior to the ceiling order, retail prices of
canned pineapple and tomatoes j rose 9%,- green, beans, 5%,. and
several other-canned foods advanced approximately 3%.. t Prices

first

the

-•

.

_

;

;

■

r

1
'

;

y
;

ago..-

Shipping difficulties during the past few
in the price of bananas.

Retail prices of bread advanced moderately in 10 cities and
declined in one. Flour and other cereals and bakery products con¬
tinued to rise with a particularly sharp advance for rice, as the

/

.

Bank

1939

year

and

opened.

As

higher than
7

a

which

quart in four cities. ,Fresh, milk, sold over thfc- counter remained
unchanged in all .cities .except in New York, where the price was
reduced by 1 cent per quart. Butter rose seasonally, although there
are still unusually, large stocks on hand.
The price reduction in
wholesale markets between mid-January and mid-February has
not

yet appeared at retails




Cheese prices also advanced.

the

result the January dollar volume was

a

previous,

year

V;-' '"'

i

/

"Letter" continues:

were

down

22%

.

'

•.

;

and 22%

above January,

,/■'
•

.

■;

-

1941-42

is prelimin¬
475,000 long
raw
value,
as
compared
with 394,000 tons in the previous
season, an increase of 81,000 tons,
or
approximately 19.3%, accord¬
ing to Lam born & Co., New York.,

arily
tons,

mortgagees down to less

-,

January, '42
•

\

_

_V«1.
(000)

Savings & Loan Assns—$90,572
Insurance

companies

%. Chg. January, '41

% of
Total

28.2

4

.

from

Vol.

Dec.

(000)

,—20

$89,996

% of Jan.,'41
Tot.
29.3

.31,062

9.7

27,691

9.0

Banks & trust companies

77,631

24.1

—22

78,977

25.7

Mutual

13,523

4.2

—30

12,931

4.2

59,033

18.4

—

9

53,891

49,575

15.4

—16

savings

banks

Individuals

Others
Total

—

-———$321,396

100.0

-—17 ;

—18

r/c Chg.

Jan.,'42
+•

^

% Chg.
1 Jail.,

January, '40

Vol.
(000)

1

$74,711

as

1942,

+.41

+-.

5

10,520

4.0

+ 29

17.5

+ 10

48,026

18.3

+ 23

44,154

14.3

+ 12

41,095

15.6

+21

$307,640

10Q.0

5 $262,683

100.0

+22

the

the

five-month

with

52,156

tons

corresponding

Sugar stocks

while

+ 17

for

five

months last year.

-

+21

8.4

+

.

28.4

25.3

the

compared

1942

66,342

of

Exports

Jan.,

21,989

first

current

period amounted to 78.397 tons

Tot.

2

the

the

as against 51,during
the
similar
previous season.

tons

mr/o of

-+ 12

of

71,448 long tons

1940-

—

during

months

period

for
',/:■

v

at

season,
September,
1941,
to,
January, 1942, inclusive, totaled^

thai) 1% for savings and
:

season

Production
five

associations.
*

crop

estimated

The firm further reports:

and

'

Type of

effort.

war

430

"

means

cooperation in

More Dominican Sugar

comparing

'.;/■

important

Sugar production in the Domin¬
ican Republic during the current

January recordings for 1942 with 1941, each
class of lender, with the exception of commercial banks, revealed
higher volumes ranging from 12% for insurance companies and
loan

defense
.

.

/

savings and loan associations which
experienced a 20% contraction in amount of mortgages recorded
throughout the country.
All other classes registered reductions
from December, but individuals serving as mortgagees constituted
the only group to recede less than 10% during January.
-•

miscellaneous

;

stitute another

states:

Among the various classes of lenders, mutual savings banks
revealed the greatest declines in mortgage financing during the
December-to-January interval, having- dropped 30% during the
month.
Next in magnitude of decrease Were/commercial banks

Lender

per

which

State

.

of Federal-State

greater than those shown during the
1940, this series has shown a rather

.'

supply of good quality rice was further reduced..
Prices of milk delivered to homes increased Vi to 1 cent

Administration,

their

.

was

.

In

continued to advance in February in nearly all cities

lower thah a year

of

//yy

The
v

•

reflecting the short 1941 crop.
Large quantities of oranges on the
market caused the average price to drop 10%T. to a level slightly
months resulted in.a 12% increase

new

1940.

the

of potatoes

month

still 5%

;

tial advances

..

Loan

strong resistance to those negative housing-market factors which
have been brought into play in the latter half of 1941 and as

:

.

.

.

Home

Although this drop

■

In |

Federal

earlier

reduction in hog
downward slightly,
Prices
:
were reduced by the abandonment of fishing in certain areas due to the war and the smaller
,'i number of vessels available for fishing in other areas.
/<
The cost of sugar to the ordinary household jumped 8% due
j largely to the fact that the majority of families, who formerly pur\ chased sugar in fairly large quantities at a saving, are now almost
; universally restricted to the more expensive 2-pound package, and
the average cost per pound has gone up. *
:
-

marketings, while beef prices moved
of fresh fish advanced 10% as supplies

I

and

success

Reduction of speed limits and
regular inspection of tires con¬

$321,400,000 in mortgages of $20,000 or less recorded dur¬
ing January represents a reduction of 18% from the previous month,
according to the March 3 "Mortgage Recording Letter" issued by

"V rise in wholesale markets resulting from a 40%
.

councils.

The

V
an

and

ernors

Mortgage Financing Activity Lower

came on

-

prices of pork followed

marked

a

with

met

ready acceptance
throughout the United States,
largely because of the enthusi¬

-

■

Eggs continued to decline
as

effort to

these

astic cooperation and participa¬
on
the part of the Gov¬

further substantial advances for fresh pork, canned tomatoes, pink
salmon chickens and lard..'. Prices of oranges also rose sharply

j seasonally, and cabbage prices dropped

appreciate
an

tion

During the last half of February, preliminary reports indicated
/

greatly

cooperation in

94.9

February of last year and 25% above pre-war levels.
:

would

objectives
throughout the country.
The tire rationing program,
so
recently established by the
Office of Price Administration,'

99.6

99.5

114.1
108.5

V;

99.6

91.8

_

118.3
+

95.7

>

were

sure

93.5

7

109.9

121.6

Canned

V

102.5

7

119.0

Beverages

97.9
95.0

114.4

vegetables
:

116.4

.

••■

103.2

and canned

Fresh

:•

111.1

products
and

7

102.5

120.4

Eggs
Fruits

113.1

103.2

1939

107.2

__.

fresh

116.2

regulations

promulgated requiring frequent,
checking Of tires in order to in¬

Aug. 15,'

1941

if

110.9

Lamb

.

Feb. 18,

1941

and

V 7119.9
_

Chickens

'•

;

118.5

__.

Pork

Dec. 16,

1942

104.3

—

Beef

Jan. 13,

116.8

Meats

average

cities covered in the Bureau's regular monthly survey re¬

Foods

Cereals

mid-February,

of the 51

Average

FOOD

'

family's food bill rose 0.5% between mid-January
Acting Commissioner Hinrichs of the United
States Bureau of Labor Statistics reported on March 13.
There were
further large increases in prices of pork, lard, potatoes, and $ugar.
Prices of canned fruits and vegetables and bananas also rose sharply
following earlier seasonal increases in wholesale markets, while eggs
and oranges continued to decline seasonally and prices of some fresh
vegetables were lower as new supplies came on to the market. It is
added that increases were general throughout the country with 45
and

OF

'

Commodity Group—

;

COSTS

(Five-Year

Retail Food Prises Ooetinued To Advance

as

effort.

said

the wheels of the

on

Index numbers of food costs by

'

was

*
•

be

for the successful prose¬

It has

0

letter

makes

cution of the

0

.3

The

East

essary

2.0

dairy products and higher prices for fresh fruits
Large advances in retail prices of meats in Port¬
land, Me., and New Orleans, and for sugar in Butte, also contrib¬

1.7

789,446,214

2.9

rubber.

age advances for

19.4

254,329,674

________

v

"

51,919,926

40

regulations

President's

Far

and vegetables.

with their

Amount

-

,

1941,

limit

at

As you know, we are doing
everything possible to conserve

Portland, Me. (2.8%), Butte (2.7%), and New Orleans (2.6%).
The higher costs in these three cities were due to
greater than aver¬

year,

$842,701,620

associations

others

8,761

__

companies

_________

companies

and

31,

V

2,774 National
3,434 State

banks
banks and

Dec.

speed
fixed

that

My dear Governor:

for

;

V

Number

of

as

and

follows:

Retail food costs advanced in 45 cities and declined in
six, be¬
13 and Feb. 17.
The largest increases were reported

The number of institutions of the various types holding mort¬

v-

gages

the
be

established requiring regular in¬
spection of tires. The White House

tween Jan.

process

Washington at the close of the

+ 64.7
+ 24.7

_I

(average)

Oranges

-

5.1

_______________

fresh

Round

held in their portfolios as

recordation

r_

__

;

Evaporated
Rib

of Dec. 31, 1941,
FHA-insured mortgages totaling $3,106,816,919.
This represents
a
gain of $697,619,484 or 28.9% ; over the mortgages held at the
end of 1940.
These figures exclude mortgages paid in full on

.

that

hour

an

+ 32.1

5.1.

/

Butter

-

8,329 in 1940 and 7,846 in ,1939.

These institutions

__

_____

Participation of lending • institutions in home mortgage financing continued to broaden during last year.
By the end of
the year, a total of 8,761 institutions were holding FHA-insured
home mortgages in their-investment portfolios. -This compares
with

_

___

Cheese

White

;

8.8

___

Flour

further said:

announcement

States

automobiles

February, 1942, compared with
January, 1942
February,1941
(Percentage change)

tomatoes

r

The

ed to the Governors of the various

The

or

I

an

;./y

Housing

II.

sub¬

as

:

.

Administration, cover only
purchase of smaH homes,
accepted for insurance under Section 203 of Title II.
They exclude
loans insured under Title I and mortgages accepted under Title VI
.

products used

February, 1941, food costs for families with moderate

Canned

mortgages to finance the construction

To Conserve Tires '
In

to

rose

year ago

$880,464,879

$940,892,100

-

oils

54,017,098

50,148,500

___

and

Changes at retail from Jan. 13, 1942 to Feb. 17, 1942, and since
February, 1941, for some of the more important foods were as follows:

110,468,050
76,375,700
34,762,000

\

Speed Gut

selling at levels considerably higher than announced on
March 14 that the
because of shortage of supply due to bad weather dur¬
President had sent identical let-:
ing the growing season, while for other foods, the diversion of large
ers to the Governors
asking their
quantities out of regular retail trade channels and into lease-lend
cooperation to achieve these ob¬
or army
supplies has been the important factor in the increase in
jectives
throughout
the
country.
the 'past year.
V

$214,934,281
180,885,700
209,022,050

.

•

__

.124 Savings banks
40

some

a

1940, follow:

Type

National

fats

incomes have risen
19%, the greatest increases being reported for
fats and oils,?.
eggs, sugar and fresh and canned fish.
This year

in each category originating FHAtogether with the volume of origin¬

year,

other

\

institutions

last

and

1941

Number-

1;365

of

mortgages

and

ernment and increased consumer demand for
stitutes for lard and butter.
*":■

Since

Asks Auto

effort to conserve rubber,
high levels in
President Roosevelt has suggest¬
following heavy purchases of lard by the Federal Gov¬

Prices of lard

record-breaking volume of private funds mobilized for home fi¬
nancing under the FHA program, says the announcement, repre¬
sented an increase of 6.8% over the previous record year of 1940.
Gains were recorded by each main type of private lending institu¬
tions approved by the FHA for mortgage insurance under Title II,
with only the "all others" category showing a decrease.
insured

1161

Dominican

+.

,

on

Republic

aggregated
the

on

the stock

hand
on

in

Feb.

77,374

same

the

1,

tons,

date in 1941

58,612 tons.

was

•

Late

in

November,

1941, the

'

British

ranged

Minister

for

the

of

Foods

purchase

ar¬

of

practically the entirer 1942 Do¬
minican

sugar

crop.

^

Bankers Dollar Acceptances

Living Up 0.7% From Jan. to Feb.
According to Industrial Conference Board

February 28 Total $190,010,000

On

Asks USDA War Boards

Cos! Of

Outstanding

r

-Thursday, March 19, 1942

FINANCIAL CHRONICLR

THE COMMERCIAL &

1162

The

Help Mobilize Farm Labor
Secretary of Agriculture Wick-ard announced

of

cost

living of wage earners and lower-salaried clerical
outstanding decreased
workers in the United States rose 0.7% from January to February,
$7,268,000 during February to $190,010,000 on Feb. 28, according to
the monthly report of the Acceptance Analysis Unit of the Federal according to the Division of Industrial Economics of The Confer¬
ence Board.
Clothing showed the largest increase for the month,
Reserve Bank of New York, issued March 13.
This compares with
2.5%.
The cost of gas and electricity remained unchanged.
All
a total of $197,278,000 outstanding on Jan. 31
and with $211,865,000
The volume of bankers dollar acceptances

Feb.

on

:

-

Reserve

The

BANKERS'

■

1

Boston

$31,687,000

2

New York

118,528,000

3

Philadelphia

4

Cleveland

5

Richmond

6

i

117,552,000
9,917,000
4,305,000

9,419,000

—:

4,233,000

,

$26,511,000
143,243,000
11,553,000

$30,392,000

2,896,000
^

Atlanta

3,356,000

3,247,000

1,428,000
2.403,000

7

Chicago

5,264,000

5,786.000

4,255.000

8

St.

750,000

794,000

133,000

114,000

1,655,000

.-.

Louis

9 Minneapolis

i

.

1,486,000

-

Kansas

11

Dallas

T5TO0(r

2,833.000

12

San Francisco

11,398,000

20,852,000

18,141,000

$197,278,000

$211,865,000

Grand

$190,010,000

Total

•

Decrease

$7,268,000.

for month,

Decrease

ACCORDING

Imports

»

Exports

—

-

Domestic

shipments

Domestic

warehouse

Dollar exchange

Based

238! 000

$21,855,000.

countries-.
,

18.383,000

Housing
Clothing
Men's

13,744,000

11,676,000

10,740,000

30,496,000

39.028,000

31.408,000

2,323,000

2,810,000

6,835,000

Total

j/a

60

Vu

90

v*

a

%

table, compiled by us, furnishes a
bankers' acceptances outstanding at the

of

volume

since March 31,

month

record of the

30

223,305,000
213,685,000

.-$217,312,000
219,561,000
215,005,000

31

Mar.

$229,705,000

—

Apr.

30.

May

31.

Apr.

30

May

31

30

244,530,440

June

29

206,149,000

June

30_

July

SI-

SO-

30—

31—— 188,350,000
31
181,813,000
30
176,614,000

Aug.

Sept.

236,010,050
235,034,177
215,881,724

July

Aug.

31
31——.

Sept.

SO,

Oct.

31

221,115,945

Oct

31

186,789,000

Oct.

31.

Nov.

30

222,599,000

Nov.

30

196,683,000

Nov.

29-

193.590,000

Deo.

30

232,644,000

Dec.

31—

208,659,000

Dec.

31.

194,220,000

29—

May

31—

June

July

-

—

Aug.

Sept.

Feb.

Jan.

229,230,000

31——

Jan.

—
-

—

Feb.

233,015,000

29

__

Daily

212,932,000

__

31-

—

28

-

212,777,000

Jan.

31

211,865,000

Feb.

28

184.806.000

„

-

show

197,278,000

a

1941.

following table we give a compilation

the

In

figures for two years:
-

Feb.

28—

31

Jan.

-

.

/j

•

28_

240.700,000

380,600,000

Jan.

31-

232,400,000

Dec.

31—

374,500,000

Dec.

31_

Nov.

29—

387,100.000

Nov.

30_

217,900,000
231,800,000

Oct.

31-

252.400,000

250,700,000

244,700,000
232,400,000
224,100,000

Oct.

31

377,700,000

Sept.

30—.

370,500,000

Sept.

-Aug

30—

31

353,900,000
329,900,000

Aug.

July

July

30_
31.
31-

June

30

299,000,000

June

29.

May

31

295,000,000

May

30—

274,600,000

Apr.

3130_

234,200,000

Apr.
Mar.

31—

263,300,000

30.

233,100,000

Bank Debits

Mar.

debits

as

by

in New

1942

601
4,152

*

York

—

Philadelphia
Cleveland

Atlanta

—
—.—,

—

Chicago
St.

Louis

Minneapolis
Kansas

City

—

-

Dallas,
San

Francisco

Total,

274

—

reporting centers

York

City*
140 other centers*

New

133 other

reporting centers

•Included in the national series covering 141




109.60

112.93

109.60

112.93

117.43

106.21

115.63

112.93

107.09

91.34

96.85

109.60

112.75

ment

106.21

115.43

112.93

107.27

91.34

96.85

109.60

112.75

II.

112.93

107.27

91.48

96.85

109.79

112.93

113.12

107.27

91.48

96.85

109.97

113.12

115.43

112.93

107.27

91.48

96.85

109.79

112.93

106.39

115.63

113.12

107.44

91.48

96.85

109.79

—-

117.45

7

117.38

106.39

115.63

113.12

107.44

91.48

96.85

109.79

113.31

6

117.32

106.21

115.63

112.93

107.27

91.62

96.85

109.79

113.31

5

117.17

106.39

115.82

113.12

107.44

91.62

96.85

109.97

4

117.07

106.39

115.63

113.12

107.62

91.62

97.00

109.97

113.31

116.77

106.39

115.63

113.31

107.44

91.62

97.00

109.97

2

116.78

106.56

115.82

113.31

107.62

91.62

96.85

110.15

113.31

27

116.34

106.39

115.63

113.31

107.62

91.62

96.85

110.15

113.31

8%
the

115.82
116.41

113.50

107.80

91.77

97.16

110.70

113.50

107.80

91.91

97.16

110.70

113.70

92.06

,

1941

1942

501
3,844

106.92

116.22

113.70

107.80

110.52

113.70

117.51

106.92

116.22

114.08

107.62

91.91

97.31

110.70

113.70

ployment

113.89

107.62

91.91

97.31;

110.52

113.70

The

106.92 a

118.00

106.92

116.61

114.08

107.62

91.77

97.16

110.70

113.89

117.61

106.04

115.82

113.50

107.09

90.63

95.92

110.34

113.31

118.10

106.92

116.61

114.08

107.98-

92.06

97,47

110.88

113.89

115.90

106.04

115.43

112.93

1(47.09 -i

90.63

95.92

109.60

112.75

120.05

108.52

118.60

116.02

109.60

92.50

97.78

112.56

116.41

-115.89

105.52

116.22

112.00

106.04

89.23

95.62

109.42

111.62

106.56

90.63

96.54

110.34

113.50

7,107
52,152
6,666
9,025
4,848
4,076

570

452

714
441
359

594
341
305

1,460

1,285

21,984

18,371

332

262

4,769

3,776

187
313

150
249

2,688
4,693
4,054
12,422

2.077
3,708
3,175
10,133

145,756
51,619

125.113
47,664

273

222

875

710

10.277
3,790

8,914
3,457
4,706
751

5,547
940

,

81,180"
12,957

67,075
10,373

f

'

1 Year ago

.

117.99

1941-

113.50

117.60

106.39

Mar,

77

1

V

107.98

90.48

111.25

1

MOODY'S

7

84.68

101.47

112.37

116.22

102.63

116.72

1940-

16,

(Based

on

Individual

Avge.

1942—

Corpo¬

Daily
Average

f

Closing

4

■;

'

Aa

'

;

''

P. U.

R. R.

Indus

17

3.38

2.87

3.01

3.33

4.32

3.95

3.19

3.01

16

3.38

2.88

3.61

3.32

4.32

3.95

3.19

3.01

14

3.38

2.87

3.01

3.33

4.32

3.95

3.19

3.02

13

3.38

2.88

3.01

3.32

4.32

3.95

3.19

3.02

12

3.38

2.87

3.01

3.32

4.31

3.95

3.18

3.01

11'———-

3.38

2.87

3.00

3.32

4.31

3.95

3.17

3.oo

10

3.38

2.88

3.01

3.32

4.31

3.95

3.18

3.01

3.37

2.87

3.00

3.31

4.31

3.95

3.18

3.00

3.37

2.87

3.00

3.31

4.31

3.95

3.18

2.99

3.38

2.87

3.01

3.32

4.30

3.95

3.18

2.99

;

■

.j.

-

-

—

-

7

—

g

,----7

5

4

————'

3
2

—

27

——i

20

—-

II

6

——

30
16
9

ii mill-in

2

3.37

2.86

3.00

3.31

4.30

3.37

2.87

3.00

3.30

4.30

3.37

2.87

2.99

3.31

4.30

3.36

2.86

2.99

3.30

4.30

3.37

2.87

2.99

3.30

4.30

3.36

2.86

2.99

3.29

4.30

•

-

3.95

3.17

2.99

3.94

3.17

2.99

3.94

3.17

2.99

3.95

3.16

2.99

3.95

3.16

2.99

3.95

3.15

2.98

1942
1942

Low

High

_

1941
1941

Low

3.35

2.83

2.98

3.29

4.29

3.93

3.13

2.98

3.35

2.83

2.98

3.29

4.28

3.93

3.13

2.97

3.34

2.84

2.97

3.29

4.27

3.92

3.14

3.34

2.84

2.95

3.30

4.28

3.92

3.13

2.97

3.34

2.83

2.96

3.30

4.28

3.92

3.14

2.97

3.34

2.82

2.95

3.30

4.29

3.93

3.13

2.96

3.39

2.86

2.98

3.33

4.37

4.01

3.15

17,

1941

16,

•

These

being the
.

-

t The

true

latest

Farm Placement

Secretary

The

2.99

2.97

Moody's Daily
Commodity Index
Tuesday,

M^r. 10

—

3.19

3.02

3.91

3.12

2.96

Wednesday, Mar. 11
Thursday,

3.42

2.86

3.06

3.39

4.47

4.03

3.20

3.08

3.25

2.72

2.85

3.19

4.24

3.89

3.03

2.83

3.37

2.77

2.98

3.36

4.37

3.97

3.15

2.98

3.59

2.84

3.04

3.66

4.81

4.38

3.28

3.10

Friday,

Mar.

"typical" bond

Saturday, Mar. 14——

They merely serve to Illustrate In a more eom
yield averages, the lat

Year

1941

and the relative movement of
picture of the bond market.
bonds used

1941, page 409,

In computing these Indexes was

weeks ago,

pub¬

ago,

ago,

17—:.——

,__228.9

229.0
181.2
219.9

17

.—171.6

Low—Feb.
1942

17

High—Sept. 9

12

High—Mar.
Low—Jan.

-

230.2

,__229.8
229.6
230.1

Mar. 3

Feb.

Mar.

229.5
—229,2

_..__229.4

16

Tuesday, Mar. 17

Month

level or tlw

12

Mar. 13

Monday, Mar.

and do not purport to show either the average

list of

authorized

personnel to act as vol¬
untary employment representa¬

USDA

4.01

lished in the issue of Oct. 2,

personnel in a

representatives
will
also be
designated in each community.

4.27

levels

to

permanent employment office.
In agricultural counties with
heavy
production,
voluntary

4.37

_

appointed

be

responsibility for sub¬
stantially the same functions as
would be
performed by the

3.28

25 years)

complete

will

voluntary repre¬
Employment

the

assume

•; 3.33

computed from average yields on the basis of one

relative

a

of

2.95

movement of actual price quotations.
the

no

3.01

average

ter

where

2.82

maturing in

way

counties
permanent office is

agricultural

all

In

Two

prices are

;

*.

2.88

coupon,

prehensive

centers, available beginning with 1919.

1940—

adds:

3.34

2 Years ago
Mar.

Agricultural Department

from the

3.39

1 Year ago
Mar.

Service as

guide to the proper location of
such offices.
The announcement

tives.
•

'

High

S. Employment

the U.

Service
Corporate by Groups

Baa

has-

said,

a

sentative

..

A

1

offices in rural areas,
Secretary
asked the War
to furnish information to

established,

-I

Prices)

Corporate by Ratings
Aaa

rate

AVERAGESt

BOND YIELD

'

.

from

Boards

•'

•.'•V-'.v

2 Years ago

and

>7 7•

Wickard

Secretary

transporta¬

agreed to increase the number of;
permanent and temporary em-,

117.08

117.60

"employ-

Employment Service,

The U. S.

116.41

97.31

to

+7'

;

106.74

9

17,

work.

the

workers

of

117.02

16

1941

8,539
56,797
8,025
10,791
5,923
5,070

t

for

Plans

12

tion

113.50

116.41

Mar.

13 Weeks Ended

,

113.50

110.34

106.56

106.74

1941____

Feb.

96.85

91.62

107.80

113.31

116.32
116.27

designated

area

representative."
Development of plans for
the provision of local central¬
ized living facilities for migra-l
tory labor from which they may,
be dispatched to particular jobs.

113.31

3

the

in

113.12

413.31

Mar 11, Mar. 12 Mar. 11, Mar. 12,

Federal Reserve District—

—

96.85
96.85

1941

Jan,

Richmond

91.34
91.34

1942___^-_

DISTRICTS

Week Ended

Boston

107.09

107.27

of dollars]

[In millions

New

112.93
112,93

115.63

banks

SUMMARY BY FEDERAL RESERVE

115.63

115.43

of'

registration

the person
as
the

with

ers

106.21

115.63

Low

of plans for

requirements of all farm-,

labor

Indm

P. 17.

106.21

9

York City there was an increase of
compared with the corresponding period a year ago, and at
other reporting centers there was an increase of 22%.
banks

At

ago.

Corporate by Groups •
R. R.

Baa

A

Aa

117.65

——

be

of farm labor.

Complete

117.52

1942

may

individual farms.

on

use

10.

106.21

High

Up 15% From Last Year

reported

tive

Yields)

Average

106.21

in leading centers for the
week ended March 11 aggregated $10,277,000,000.
Total debits dur¬
ing the 13 weeks ended March 11 amounted to $145,756,000,000, or
16% above the total reported for the corresponding period a year
Bank

PRICESt

BOND

on

——

—

or

are

Development

-

-

seasonal

of

labor

who

training which may be re-;
quired in order to make effec¬

Aaa

V

rate •

men.

any

~

23

Mar.

9;

are

106.21

30

'

averages

117.46

Jan.

■

238,600,000

bond yield

and

prices

regular,

of

labor

The

housed

—

Low

Feb.

—

(c)

117.45

'■ 6

members of their families.

(b) The

workers

117.32

;

1940—

—

(a) The labor of the farmers
and

Revised.

117.33

High

388,400,000

1941—

r

Corporate by Ratings •

Corpo-

Govt.

2

1941—

*

of:

and

1942

13,

Avge.

Bonds

20

28,

of the monthly

„•I,•

/

1942—

Feb.

for

11

announced on March
;'

bond

(Based

9

Feb.

outstanding on Jan. 31 and with $240,700,000 on Feb.
7
:

cial paper

prices

food

12

190,010,000

received by the bank from commercial paper deal¬
total of $388,400,000 of open market paper outstanding
This amount compares with $380,600,000 of commer¬

28.

Feb.

of

13

■

13 that reports

on

computed

V. S.

10

Outstanding

Reserve Bank of New York

y

index

0
+0.4

the following tables:'

14

-

ers

95.2
105.0

;

.

MOODY'S

16

;

197,472,000
176,801,000

1942—

Commercial Paper
The Federal

100

Development

full-time hired

17

Mar.

209,899,000
„

-

•

102.9

of plans for
making use during peak sea¬
sonal operations of town persons
who are regularly employed in
other occupations.
8. Development of plans for
the exchange between farmers
7.

-

Averages

'

1941—

1940—

+0.7
—0.8

30

,

school

all

work.

available for farm

tBased upon retail prices of 35 kwh. of electricity, 1,000 cubic feet of

1942.

1942—

237,831,575
246,574,727

Apr.

+0.1

85.7r
102.5
94.5
105.8

-

Board

Conference

The

on

given in

1941—

1940—
Mar.

$245,016,075

31—

value

Moody's

close of each

1939:

1939
Mar.

92.6

85.7

'- ' fr

;

of all items
of dollar—

average

NYA

youth available for farm work.
6. Registration of all women

+0.3
+2.5
+2.4
+2.6+0.1

:

all quali¬

of

use

employed on WPA
projects in appro¬

priate farm work.
;
5. Registration of

Moody's Bond Prices And Bond Yield Averages

ft
ft

The following

-

92.7

i

natural gas, or 2,000 cubic feet of manufactured gas.

ft
ft

.

150
—

95.2

90.1
82.4
91.4
73.4
90.3r

;

for

Plan

4.

fied persons

+0.6

95.8

90.4
84.5
93.6
75.3
90.4

5

electricity

and

15,

Jan.

Dealers' Selling Rates

,.-.vv

perform custom work.

from Jan.. 19*2
to Feb., 1942

,

33

,

-Based

120

180

•—

Purchasing

$144,482,000

BANKERS' ACCEPTANCES, MAR. 13, 1942

Dealers' Buying Rates

30

,

20
12

and light

for month, $9,923,000

CURRENT MARKET RATES ON PRIME

'

1942

j

Weighted

$52,763,000

of others

Decrease

Days

Jan.

1942

farms.

Registration of all oper¬
ators of farm equipment who

Dec. (—)

or

Feb.

:

tGas

ACCEPTING BANKS

1923—100

Family

for

other

on

are

but would
part-time

employed

3.

Pet. of Inc. ( +)

Budget

Sundries

HELD BY

Bills

.$91,719,000

bills.

in

Women's
Fuel

25,932,000

11,213,000

12,546,000

work

mem¬

who

families

available

be

Indexes of the

Cost of Living

unem-;

and

operators
farm

partially

and

Coal

—

BILLS

13

$118,567,000

16,662,000

goods stored in or shipped

on

•Food

Feb. 28, 1941

Jan. 31, 1942

of

bers

from January to February, with

Relative

families

farm

laborers,

Conference Board index of the

Importance
•'

-

Item—

$115,889,000

■

.';;,:"v

/

;

.

of

bers

percentage changes:

CREDIT

OF

cents.

cost of living by main components,

$112,448,000
18,453,000

;

between foreign

Own

year,

116.1

was

up

ployed and available for work.'
2 Registration
of . all
farm

value of the 1923 dollar declined .to 105.0
In January it was 105.8 cents, and a year ago

The following table shows The

Feb. 28, 1942

__——

credits

for

NATURE

TO

it

757,000

'

Dln)chasing

County

Service in set¬
machinery for:
I. Registration of all unem¬
ployed farm workers and memy;

ting

442,000

10

City

The

cents in February.

and

State

S.

U. S. Employment

and coal 0.1%.

f

Feb.28,1941

Jan.31, 1942

Feb.28,1942

1%

budget recorded advances of less than

pro-,

Department of Agriculture.
War Boards to cooperate with the!

Living costs were 10.6% higher than in February, 1941. Food
prices advanced the most over the year period, 21.6%, and cloth¬
ing second, 15.6%.
Other rises during the twelve months were
in sundries,, 4.8%, fuel and light, 4.6%, and housing 3.1%.
"

DISTRICTS

RESERVE

FEDERAL

the

a

The Secretary

manpower.

instructed-the
U.

The Board's index of the cost of living (1923=100) was 95.2
February, as compared with 94.5; in January, 93.2 in Decem¬
ber, 92.9 in November, 92.0 in October, 90.8 in September and
86.1 in February, 1941.

STATES

OUTSTANDING—UNITED

ACCEPTANCES

BY
I Federal Reserve District—

of

labor

~in

report for Feb. 28 follows:

Bank's

DOLLAR

is

analysis

month-to-month

the

items

follows: food, 0.6%, sundries 0.4%, housing 0.3%
Under date of March 17, the Board further said:
as

attributed to
losses in import credits, domestic .warehouse credits and dollar ex¬
change, while in the year-to-year comparison only credits for ex¬
ports and domestic shipments were higher.
;
v,
in

decline

other

the

28, 1941.

The

13

Mar.

on

for helping to mobilize farm.

gram

2

230.2
220.0

Volume 155

Cottonseed Receipts

r
r

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4056

On

March

the

13

of

Bureau

issued

Census

following

the

showing cottonseed received, crushed, and on hand, and
cottonseed products manufactured, shipped out, on hand, and ex¬
ported for the 7 months ended with February, 1942 and 1941:
*

soft coal, in the week
tons.

received, crushed, and on hand, and cottonseed
products manufactured, shipped out, and on hand for seven months,
ending Feb. 28, 1942 and 1941.
r
> v V
Cottonseed

COTTONSEED

;

Crushed

1941

1942 '

United States______L_

Arizona

___L

1941

3,336,295-

768,339

841,405

72,507

177,561

68,332

45,171

4,183

76,668

185,458

65,015

164,009

i 1,870

22,031

470,445

516,341

372,639

353,060

122,736

168,836

196,395

118,182

114,973

37,453

84,491

245,753

326,253

202,975

267,120

61,694

60,265

79,154

122,671

76,607

114,370

3,073

8,555

________

551,592

469,176

440,816

138,379

255,914

181,994

337,311
223,805

114,802

209,160

36,902

35,719

149,140

Louisiana
Carolina

...

!_____

Oklahoma

19,616

215,811

218,309

228,388

237,393

*

100,880

206,047

11,285

15,232

387,840

299,088

258,980

113,136

129,986

808,210

916,718

159,405

138,644

31,196

21,999

All

other

States

117,537

139,048

___

...95,759

110,960

ESTIMATED

Daily

tons

include

reshipped

for

for

130 529

and

and

1942

39,507

tons

1941,' respectively.

1, nor 39,139 and 32,633
include 665 tons destroyed

Does

'

1941.

PRODUCTION

DATA

'

.

of

10,100,000 net
10.3% from the
below the corre¬

r

when

compared

H

OF

SOFT

Mar. 7

tFeb. 28

Mar. 8

1942

1942

1941

COAL,

IN

TONS

NET

January 1 to date
Mar. 8
Change

§Mar. 7
1942

'

10,100

11,265
1,878

1,683

10,748

cessive

patiently

interests.

weekly

Pearl.

"Before

National Railway Media¬

by the

Since Pearl Harbor

tion Board.

to

1937

97,413

+

5.6%

95,339

1,837

1,709

+

7.5 %

1,737

6,432

5,820

+12.6%

48,278

:
^Includes, for.purposes of, historical comparison and statistical convenience the
production of lignite.
§Subject to current adjustment.
(Total barrels produced during the week converted into equivalent coal assuming
:

Railway

proposed arbi¬
accepted but
rejected.

The unions

tration.

the company

■..-

55,361

62,339

National

Board

Mediation

"Second,
6,302

a

agencies have
settle this dispute

the

"First,

Mar. 6

fr. last year

1941

"■;

output——__

both

Harbor,

sides refused arbitration proposed,

attempted

102,899

1,791!

"The Government of the United

States,

by peaceful means.

000's omitted-

average

in the midstr*

war.

number of Federal

Off PRODUCTION OF CRUDE PETROLEUM

Week Ended

continue

to

total

a

which, through four suc¬
public agencies, proposed
but
unsuccessfully
a
peaceful settlement of this dis¬
of pute, cannot be flouted by private

0.8%

,

of

Coal equivalent of

hand Aug.

on

decrease

a

allowed

at

or

(Crude petroleum—,

"

"Does not

shows

STATES

COMPARABLE

WITH
.'

date

UNITED

Total, incl. mine fucl_

220,763
1,039,615

109,157

estimated

is

1,165,000 tons,
the weekly figure

comparable period of 1941.

13,085

940,421

.

1942 to

year

,

391,556

Carolina

dar

'Bituminous coal—

Texas

7

decrease of

The U. S. Bureau of Mines reported that the
production
Pennsylvania anthracite for the week ended March 7 was estimated
at 1,179,000 tons, a decrease of
116,000 tons (about 9%) from the
preceding week.
When compared with the output in the corre¬
sponding week of 1941, there was an increase of 5.4%.
The calen¬

,

Tennessee

ended March

a

preceding week, and brings
sponding 1941 level for the first time.

with the

......

Georgia

South

Feb. 28
1942

1941

1942

•

211,559
.___

California

North

1

3,173,236

Arkansas

Mississippi

On hand at mills

,

4,138,858

3,811,046

Alabama

i

Aug. 1 to Feb. 28

Aug. 1 to Feb. 28

•

,

(TONS)

ON HAND

AND

CRUSHED,

RECEIVED,

Received at mills*

This indicates

private quarrel between, a,
and a union cannot b&

company

The Bituminous Coal Division, U. S.
Department of the In¬
terior, in its latest coal report stated that the total production of

statement

'

"A

Weekly Goal And Coke Production Statistics

Again Lower

the

1163

Director of the
Transportation

the

of Defense

Office

proposed arbitration. The unions
accepted but the company re¬

,

COTTONSEED

PRODUCTS

*.

•

MANUFACTURED.
On hand

v.

Item—

Crude

Season

„

)

oil

Produced Aug.,

August 1

1941-42

ON

HAND

6,000,000 b.t.u.

Shipped out

On hand

1 to Feb. 28

Aug. 1 to Feb. 28

Feb. 28

980,061

945,958

*170,913-

*29,708

1

AND

OUT,

SHIPPED

the Supply of petroleum
Yearbook, -1939, page 702).

'

: (thousand

Refined

pounds)

oil

'
„

(

-

(thousand pounds)
Cake and meal

(tons)

.

1940-41
1941-42
1940-41
1941-42

)
(
)
(

'

.

______

..37,352

.

79.501

1940-41 y

151,439

1940-41

20,914

)

1941-42

123,154

f
)
(500-lb. bales)
f
Grabbots, motes, &< )

1940-41

129,340

1941-42

1,834

1940-41
1941-42

1,215
6,183

:

.

253,963

734,595

206,627

646,640

211,839

Linters

-

,

(running

Hull

bales).

fiber

(500-lb. bales)

,

"Includes

Aug.

1940-41

13,192,000

establishments
sumers

j

and

1,

:

and

and

and Febj

'>

148,761-

753,783

271,349

22,805

1,023

24,159

23,922

1,452

42,753

J. 23,450

25,486

34,896

32,499

14,846

895,792
21,994

.

pounds held

20,556,000

28,

905,141

•

930,748

<

12,449

107,597,000

7,859,000

1941,

;

837,565

-.

anthracite—

"Total, incl. colliery fuel 1,179,000
production 1,120,000

■

Beehive coke-

United

States

States

In

'

the

tion

of

in

of

decided

statistics

——

to

national

operations.
revision

•„

§Mar. 7

and

Products

Mar. 9

1941

1,295,000

1,119,000 10,483,000

1,063,000

156,800

138,100

1,408,500

and

(Excludes

15,042,000
13,959,000

1,168,600

1,167,000

11,088,300

coal

shipped

(Comparable

fuel.

colliery

ESTIMATED

data

by

■

and State

are

not

from

available.

authorized

§Subject

to

WEEKLY

PRODUCTION

Thousands of

tin

'

-

OF

"Fourth, the National War La¬
Board unanimously directed

bor

Railway Labor Act and under the

COAL,

of final annual returns

or

from the

Alabama:—.:'—

BY

STATES

Colorado——————

■

operators.)

-Week Ended

((February

1942

1941

1940

1937

2

2

3

3

2

385

370

71

*

70

174

—

373

.r-j

304

X

89

.

172

•

.

161

/

aver.1923

403

304

/

70

50

87

118

197

231

.; •' l

((

0#

1,405

1,444

1,314

1,123

1,493

1,993

540

515

518

421

500

613

84

82

60

116

136

1

Georgia and North Carolina'■

Illinois—

'

'

-

——

Indiana—

Iowa—

Electric Output For Week Ended March 14,1942,
Shows 12.5% Gain Over Same Week In 1941

•

167

1

':.((■

.

»'•

67

,

180

197

Peoria

to

tive

830

766

277

Kentucky+-Western—_

285

•

,

'

40

'

:

order

kwh.

Tennessee.^

the

corresponding period in 1941, a gain of 12.5%.
The
output for the week ended March 7, 1942, was estimated to be 3,392,121,000 kwh., an increase of 12.9% over-the corresponding week
in 1941. ..V-X-V
v
K-:-' /
,

.

PERCENTAGE INCREASE

'■)'

'V'SC1/'-; 0-

Major Geographical Divisions—
England_,

New

Middle

Rocky

: V;

,

»,

PREVIOUS

13.5

-

9.9

;

V

; ;
IV,

DATA FOR

12.1

.

■

-15.3

,

.25.2

12.5

12.9

'

,

•'•»>

12.9

13.1

13.1

13.8

13.9 =

•

again agreed to cooperate and the
company refused.
"This

776

248

173

39

38

for

Week Ended—

Sept.

I

1941

1940

over

1940

1939

7

8

86

75

25

26

„

Wyoming—-:

Total bituminous

1938

1937

—

3.132,954

2,591,957

+ 20.9

2,375.852

2,109,985

3,322,346

2,773,177
2,769,346

+ 19.8

2,532,014

2,279,233

+ 18.2

2,538,118

2,211,059

Sept;

27—I'.--*

2,816,358

3,273,376

4——

-

'i1';

+ 16.2

a

+

23

26

any

68

80

defiance

>

16

.■

57

24

23

2,231,277

2,558,538

2,207,942

2,792,067

+ 19.3

2.554,290

'2,228,586

2,339,384

+ 19.1
+ 16.8'

2,583,366

2 251.089

2 324 750

2,576,331-2,281,328

2,327,212

Oct.

25——;

—3,340,768

58
.

56

71

**37

450

653

694

2,760

2,638

2,690

2,107

2,813

3,087

151

142

147

128

119

127

8

10

7

16

16

23

100

86

79

57

112

96

382

338

281

307

212

49

40

33

46

77

32

'

.

J

1,940

2,038

1,682

866

827

774

564

144

144

118

1,996

.

•

_.

.1,127

2,052

V

((

V

,

95

v-

731

673

157

156

coal—

1

**y

11,265

11,000

10,860

8,794

11,348

10,956

-1,295

1,159

1,090

891

718

1,902

12,159

11,950

9,685

12,066

12,858

::

t(

:

((

yv

on

the

12,560

operations

B.

& O.

the N.

on

in Kanawha,

&

W.;

Mason,

C. & O.;

and Clay counties.

^

..

disrespect
"We

2,331,415

President Backs National War Labor Board

M In Toledo, Peoria & Western RH Go. Case

2,866,827

+ 16.5

2,622,267

2,283,831

2,297,785

1———5 3,380,488

2,882,137

+17.3

2,608,664

2,270,534

2,245,449

8——

3,368,690

2,858.054

+ 17.9

2,588,618

2.276,904,

2,214,337

Nov.

15—-J.-—

3,347,893

2,889,937

+ 15.8

2,587,113

2,325,273

2,263,679

Nov.

22

3,247,938

2,839,421

+ 14.4

2,560,962

2,247,712

2,104,579

Nov.

29—

3,339,364

2,931,877

+ 13.9

2,605,274

2,334,690

2,179,411

public a letter sent to
George P. McNear, Jr., President of the Toledo, Peoria & Western
Railroad Company, from President Roosevelt in which Mr. McNear
was requested to comply immediately with the Feb. 27 order of the

3,414,844

2,975,704

+ 14.8

2,654,395

2,376,541

2.234,135

National War Labor Board for

3,475,919

3,003,543

+15.7

2,694,194

2,390.388

2.241.972

tween the railroad company

+ 14.5

2,712,211

2,464,795

2,424,935'
2,174,816

2.053.944

+ 17.3

—_

—

Dec.

13—

Dec.

20

—

——

"

■

3,495.140

3,052,419

2,757,259

—3,234,128

Dec.- 27—

'■.

:,,

'

'

3——

Jan

10

Jan".

17—

Jan

24—

Jan

31

Feb

7

Feb'
Feb'
Feb'

14

Mar

7

28~

Mar'
Mar!

"
-

14~

—

—

-U-

'

"

DATA

FOR

2.6R8 3*0

'-L6WMR3

1 wp1"

2,673,823
2,660.962
2,632,555
2,616,111
2,564,670
2,546,816
2,568,328
2,553,109
2,550,000

1,598,201

1,736,729

2.993,253
3.004,639
2,983,591

+14.5
+ 14.8
+ 15.8
+16.2
+ 15.0
+ 14.7
+ 13.9
+ 12.9
+ + 12.5

"

2,983,048

——

2,508,321

RECENT

MONTHS

■

■

■

'

1940

1941
■

~

February
March

_

Anril

—

"T" *"
June"

Mav

_

tu1v
August

•^entpmber

-

nrtnber

November

December
Total

—

III—

for

year

.

13,149,116

11,683,430

11.831,119

.10.589,428
10,974,335
10,705,682
11,118,543
11,026,943
11.616,238
11,924,381
11,484,529
12.474.727
12,213,543

12,882.642
12,449,229
13.218,633
13.231,219
13,836,992
14,118,619
13,901,644
14,756.951
13,974,232

12,842,218

138,653,997




-

+ 12.5
+ 11.7
+ 17.4
+ 16.3
+ 18.9

16

made

arbitration

of the

labor

dispute be¬

men

and

Firemen

This

dispute

hours and working

resulted in

a

Enginewages,

over

conditions has

strike since Dec. 28,

of

the

ernment.

"The Government has been pa¬

tient, but there is

point beyond

a

which patience becomes

disloyalty to

act of

an

people who have
stronghold after stronghold
of freedom go down because men
a

seen

this

the

National

War

Labor

is

case

recited

final

the

in

"

1,588,967

1,588,853

1,728,203

1,578,817

1,726.161

1,545,459

1,718.304

cago,

1.512,158
1,519,679
1,538,452
1,537,747

1.60Q 250

1,514.553

1,687,229

1,717.315

1,706,719
1,702.570

1.687.229

The

statement

"The

of war, I must

defiance

of

ment of the United

Govern¬

the

States by

9,290,754

9.787,901

9,256,313
10,121,459
9,525,317
9,868,962

,8,396.231
9,110.808
8.607,031
8,750.840
8.832.736
9,170.375
9,801,770
9,486.866
9.844,519

8.911,125

9.886.443

disputes

9.573.698

10 065.805

"As

9.893.195

9.506.495

States

10,372,602

9,717,471

•
.

1937

9,665,137

9.773 908

insist that the national agreement

as

set forth in the Execu¬

tive

Order

creating the National

War

Labor

Board

be

must

com¬

of the people in time of war can¬
afford

not
or

private

to

permit the special
interest of any labor

10.036.410

plied with by all American em¬

union

10,308.884
9.908.314

ployers and labor groups.

down the national

124,502,309 111,557,727 117,141,591

to

them

save

ar¬

The people of the
United States have a right to de¬
mand that their Government
pre¬
vent

private
quarrel
from
the national will.

a

checking
"In

this

time

of

dire

necessity

for the quick maximum
transpor¬
tation of all materials as part of

is

but

vital

link

to

settle

a

involving

a

in

overland

intolerable ,;to

the

oceans1

American

people in their struggle to remain
free.

•

"The

National

Board, in the
ment

of

the

name

War

Labor

of the Govern¬

United

States again
unanimously, and for the last
time, calls u£on the management
of

the

ern

West¬

Railroad

accept
in ac¬
of

the

Board."

President

of

the

and Commander

in

United
Chief

reported

on

modity

Credit

The
on

labor
for

disputes

re-

tled

quest you

or-,

by peaceful, means,,

shall

the duration

of

Department

Mar.

had

11

also

reported

that through Feb.

28,
1942, the CCC made 514,745 loans
355,933,094 bushels of 1941

on

cludes

that

Corporation

85,403 loans, in the amount
$64,326,269 on 88,143,945 bush¬
els of 1941 crop corn through Feb.
28,1942. Loans made to date have
averaged 73 cents per bushel.
of

wheat.

to

Agriculture

Mar. 11 that the Com¬

made

break

corporation

of the armed

forces, I hereby
to comply with the

The Department of

agreement be¬
management
and
labor,

or

tween

Corn & Wheat Loans

Company.
is given

part herewith:

follows:

as

these times

"In

in

Roosevelt

President
wrote

official

10,183.400

•

materials

1941,

1938

,

and

rived too late.

immediately."

1939

11,476,294

demands

crisis

of the peaceful means of set¬
tlement established by the Gov¬
use

Toledo, Peoria and
Company to
arbitration of this dispute
The history and significance of cording with the decision

der

Board

■

Kilowatt-Hours)

"

+20.0-10,068,845
+ 19.1
10,185,255
+ 18.4
10,785,902
+21.0
10,653,197
+ 18.3
11,289.617
+ 14.4
11,087,866
.

March

on

the
Toledo, Peoria and Western Rail¬
that there shall be no strikes or road
Company has raised issues
lockouts for the duration of the far
beyond the dispute between
war
and that the procedures for the
company
and the Railroad
the peaceful settlement of labor Brotherhoods.
This
Government

(Thousands of

over 1940

House

affecting 104 employees of
appeal of the National War Labor
this 239-mile road, which is the
Board sent to the Toledo, Peoria
freight belt line by-passing Chi¬ &
Western
Railroad

% Change
1941

januarv

1929

1,542,000

+ 15.7

21—.-w—

.*

1932

1,619,265

3,421,639
3,423,589
3,409,907
3,392,121
3,357,444

White

and the Brotherhood of Railroad Train¬
and the Brotherhood of Lo-«>-

men.

2,558,180

3,474,638

_

_

1940

The

comotive

'

+ 15.6

3,472,579
3,450,468
—_r 3,440,163
3,468,193

21

'

.

over 1941

2,033,319

;"v

-

.

1942

=,

-

3,288,685

—

:

'

1 1941
2,845,727
3,002.454
3,012,638
2,996,155
2,994,047
- 2,989,392
2,976,478
",2,985,585

1942

Week Ended—
Jan.

.

% Change1

' '

'■

:

"

violence,

of

law, and any
peaceful procedures.-

of

national

The

processes.

any

transportation between the

Nov.

6———

lawful

disregard

small

Nov.

Dec.-

of

denounce

total war, any refusal
railroad labor dispute

2.338,370

2,817,465;
2,837,730

45

.

69

578

>

2.211,398
.

3,355,440

18—3,313,596

dis¬

51

:

3,330,582

Oct.

—

labor

226

Virginian; K. & M.; B. C. & G.;
(Rest of State, including
the Panhandle District and Grant, Mineral, and Tucker counties,
tlncludes Arizona,
California, Idaho, Nevada, and Oregon.
§Data for Pennsylvania anthracite from pub¬
lished records of the Bureau of Mines.
tIAverage weekly rate for entire month.
♦♦Alaska, Georgia, North Carolina, and South Dakota included with "other Western
States." ((Less than 1,000 tons.
=:
'
and

V:
;

13———-

11

procedures

this

556

63

-

♦Includes

-

14.7

r

20—. 3,273,375

Oct.

established

of

42

675

370

Total, all coal—

13.5
23.9

Sept.

pet.

of

lawful

322

60

__

Washington
"West Virginia—Southern.

§Pennsylvania anthracite- L

14.4
:•

Sept.

6_

and

settlement

916

.

.

-

rejection

peaceful

174

695

1

:

1941

••

Labor

The unions

*

12.1

23.4

•

War

192

-lo./

,17.3

<•

:+

74

Feb. 21, '42

.

14.5
/.•

•,

'.

(West Virginia—Northern.

——-

9.5

-

v

—

the

4

'

(Thousands of Kilowatt-Hours)
% Change

•.

•

•

;.

''

*13.1."

12.8 ;
v

29.1

RECENT WEEKS

.+•+

;

.•

•

.

-

11.0

.

;

States________12.6

United States.

-

8.9

11.6

_______________

YEAR

''Week Ended-:
Mar. 7, '42
Feb. 28, *42

8.3

Coast

Total

.

10.7

,

Mountain-^—13.2

Pacific

>

Mar. 14, '42

Central—.

Southern

.

~'r"r^rr

Atlantic

Central Industrial

West

OVER

of

Board for arbitration.

'

Montana^-—v_—

-

Railway

out the direc¬

carry

pute tends to breed violence and

142

866

39

6

;V

in

to

'

The Edison Electric Institute, in its current weekly report, esti¬
mated that the production of electricity by the electric
light and
power industry of the United States for the week ended March 14,
1942, was 3,357,444,000 kwh., which compares with:: 2,983,591,000
,

National

Mediation Board sent its mediator

'

exports.

the

"Fifth,

1942

-

Arkansas and Oklahoma——

'■

Railway^

Board, set up by Con¬
for that purpose. The unions
accepted but the company re¬
jected.

gress

Tons]

Net

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

sources

company

Mediation

truck

current

and

Conciliation

auspices of the National
t

1,163,300
dredge coal, and

1,166,600

washery

I
ments

member panel

States

unions accepted but the
rejected.
\ ■

1929

10,566,000
9,959,000 10,038,000

three

a

United

Service proposed arbitration. The

'

(The

"Third,

arbitration under Section 8 of the

Alaska___:

Department of Com¬
the publica¬

'—■

,

COKE

Mar. 8

v

1942

1,230,000

■■»

until' further notice

I;

—

AND

■

in

defense, the

discontinue

concerning imports

!.n'-.•,,,

..

1941

820,567,000 pounds of crude oil.1

interest

has

merce

ANTHRACITE

Calendar year to dateMai\ 8

1942

151,800

total—

"Includes

jected.
of the

1942,

Exports and Imports of Cottonseed

/

most

(Minerals

.■■■'

total—

State—

:

coal.

By-product coke—
United

'

;

that

Note

competitive with

Feb. 28

1942

(Commercial

respectively.
tlncludes 7,268,000 and 4,106,000 pounds held by refiners, brokers, agents, and ware¬
housemen at
places other than refineries and manufacturing establishments and
3,903,000 and 3,510,000 pounds in transit to manufacturers of shortening, oleomargarine,
soap, etc., Aug. 1, 1941, and Feb. 28, 1942, respectively.
•
(Produced from

pound of coal.

per

directly

—Week Ended-

by. refining and manufacturing
transit to refiners and con¬

pounds

not

PENNSYLVANIA

OF

Mar. 7

Penn.

1,307,493

' : 789,783

'

13,100 b.t.u.

(In Net Tons)

372,208

1,175,963

1,481,955

,

1941-42

(

_________

PRODUCTION

507,344

865,132

'

(tons)

and

products is
(Revised.

(351,683 J>

1,383,727

164,444 ><■'

ESTIMATED

177,509

'

990,011

?

(768,567

493,658

.

.

1,065,363

v

(294,005

1

Hulls

'

barrel of oil

per

of

on

The wheat under loan in¬

117,775,740 bushels stored
farms and 238,157,354 bushels

be

set¬

stored

in

the

war

Loans

have

public
been

904,810 bushels,

warehouses.

repaid
t

.

,,

t

17,-

on
.

•

.

*

^Thursday, March 19, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

1164

Steel Production Establishes A New All-Time
Wage-o Cotton CoHsamptioB in February Above Last Year
Under,'date of, March 14, 1942,■■ the Census Bureau issued its
High—All New Gonstructien To Be Licensed
Hour Administration report showing cotton consumed in the United States, cotton on

Court Restricts

.

cotton for
amounted
to 893,745 bales of lint and 107,539 bales of linters, as compared with
U. S. Supreme Court on Mar. 2 793,428 bales of lint and 108,838 bales of linters in January, 1941.
February consumption of cotton includes 4,500 bales distributed
declared that the power of sub¬
poena
"is capable of appressive by Surplus Marketing Administration through various cotton mat¬
tress programs.
The following is the statement:
./.Y
v
use," and the Court ruled against
In

the authority

restricting

hand, active cotton spindles, and imports and exports of
the month of February, 1942, and 1941.
Cotton consumed

of

the Wage-Hour Administration in
the
issuance
of
subpoenas, the

the

of

the Wage-Hour
Administrator
in
delegating
to
subordinates authority to require
practice

In

two

involving

cases

V

;
•'

'

-/

that this would

unbearable
the

T

the

In the

Cudahy

reversed

v

,

Cotton-growing States (1942

/■/;/

[1941

;,/ /■

'///.

by

case,

.

/

.

Z

23,077,722

14,045,487

22,777,280

17,470,838

366,519

4,954,202

94,225

285,246

327,818

4,922,292

16,631

.11,629

(1942

"■/.

/

23,287

652,682

9,675

1, 618,044

j

....

4,403

v'*,.

Z

•

8,799

-

846,077

-

558,972

175,902

11941

106,838

y

728,802 *

543,060

.83,638

/

/

against the company.

;

•

'

/. /

Surplus Mar¬
\.;' /

'

Y/7Z77; Imports and Exports of Cotton and Linters

:

.

Justice

'

Lowell "Sun"

An

even

the

re¬

dependable world statistics such data are being omitted
split, 4-4.
report for-the time being.
V//*://^;:
decision automatically
Court

the

upholds
I

with the

case

the

that

sult

lower
Court

Circuit

Court, and
Appeals

of

'

The

in

newspaper,

from this

'

addition

The weekly wholesale commodity price index compiled by The
contesting
the
Adminis- National Fertilizer Association which was released March 16, showed
authority to; delegate a
slight gain in the week ended March 14, 1942, advancing to 124.0
his
subpoena
powers,
argued from 123.7 in the preceding week.
A month ago the index stood
/
also
that 'application
of the at 121.7 and a
year ago it was 101.4, based on the 1935-1939 aver¬
wage-hour law to newspapers
age as 100.
';///' '/.."VV-V
S
.'
violated
the1 Constitutional
The increase in the general level was due to higher prices in
guarantee of ; freedom of the farm
products and; gains in 'some industrial commodities.
The
'
press. ' The Supreme Court did foods
group index declined due to lower,prices for beef, veal, lamb,
not pass on this question.
pork, cattle and poultry, even though higher prices were shown for
The
Lowell
"Sun"
case
was
milk, flour, and other meats.
Higher prices for anthracite coal
previously referred to in these and petroleum offset lower prices for gasoline " resulting in the
columns Nov. 2, 1940, page 2578. fuels group remaining the same.
Slight increases in the prices for

;

to

*"

trator's

.

To

••

•

-

;

V

v

observers the steel industry seems closer than a week

some

which the War Production Board will have to
allocation of all available ingots to finishing
Army, Navy, Maritime Commission/and lend-lease

to the point at

ago

consider the absolute

that

facilities
needs

met on schedule.

be

may

-

-

-

•

• <

•

.

:

- •

•

point of
97% of capacity, an advance of a point over last week's revised
rate of 96%, according to "The Iron Age" estimates.
Part of the
rise appeared due to a slight seasonal improvement in scrap ship¬
ments, a reflection of early spring weather reported in some areas.
Nevertheless, the scrap shortage remains the chief retarding factor
ingot production this week reached a new high

"'Steel

to lift steel output.

efforts

in

/

Y

;

important steel producing area , to show a loss this
Pittsburgh, where operations are down one point to 97%

The* only

•

-

YY

under practical allocation.

items are

three

all

Y.

'

Fertilizer Ass'n Price Index Stili Rises

/

had ruled for the newspaper.

:

continuing to pour in, the steel reinforcing bar situation
has become critical.
All the orders now being placed bear, high
priority ratings.
^
t
^
: :
Recent allocation of structural shapes for, production of freight
cars still leaves unsolved the problem of how-to make rails, muni¬
tion steel and structural steel off the same mill, in some cases, when
tary bases

Y'./\ '77,' -.7,

•

and mili¬

With orders for steel to be. used in defense plants

ible.

/
In the interest of national defense, the Department of Com¬
;
r.
;
merce has decided to
discontinue until further notice the publica¬
Murphy, former At¬
tion of detailed statistics concerning imports and exports.
^
torney General who was among
the
majority
in the Cudahy ■:./ :■
•/'. x" World Statistics
"v
V
case, did not participate in the
Because of war conditions
and the difficulties in obtaining

;

the

to

ABOVE

INCLUDED

107,539

'February consumption of cotton included 4,500 bales distributed by
keting Administration through various cotton mattress programs.,

,

licensed, so that vital metals and other materials may be directed
war effort.
V'V/ ?' ■■/Y/Y"Y/-.,■/ " /•/
-/• Y-z.-'.•/■ /•/Y.-Z ■ /:"'
Reasons for the coming ban on building are readily discern¬

be

10,060

7/

Court: :of Appeals at
New; Orleans, which had ruled

.

25,028

(1942

(1) Included in other foreign cotton.

Age'", has learned,, will soon be'stopped by an order of the War
Production Board./After the stop date, all/new construction will

4,707.

14,979

•

for. the

block

3,804

<40,693

the construction industry is being placed on the
good of the nation.- AH construction, "The Iron

This, week,

1

1

112,011/-V 67,937
28,480
72,672.. •
23,804. 7 "27,642

.' 2,277 [f ■ 14,247
NOT

Linters

materials like steel will grow still more severe.

:

-•

80,023

51,321

Y\Z/' '■

•

/ From now on, orders

,

146,326,

/>'

,

affecting the production and use of vital
The biggest indus¬
try to be halted, for conversion to; war implement; manufacture,
has, of course, been the automotive industry. ;^
\ J ; Y/

17,236,944

194,071 '

INCLUDED ABOVE
"46,452
(1)
'<■
(1)' V
u>7..; .u) .7 29,944

[l941

'/,

of tons

'

:

25,194

that

landing mats,

402,989

11941

Amer.-Egypt'n cotton

that ;///Y//77/-'/•■■■'

the Court

12,213,134

612,263

(1942

.7

>

-

2,096,777' 11,823,328
1,570,268/ 13,707,994

751,119

hm

foreign cotton.

zzz,

Steel order

107,893

(1942

Y..Y--Y/7 '
Other

(number)

1,906,835

shortly.

started

be

are

dustry

.(bales)

2,579,789

will

equipment

appearing at many points in the metal working in¬
the United States is planning for an offensive war./
backlogs show, for example, that hundreds of thousands
of sheets and wire mesh will be utilized in 1942 for airplane

V'Y Signs

/

(bales)

4,458,285

V r

-

Egyptian cotton

to 4 vote the

5

a

spindles :/

759,028

..

other

and

machine
Another im¬

in Ohio, and efforts to obtain the necessary

to be built

is

tools

February

674,009

26,824

11941

derway for completion by next July.
An extremely large arsenal,
Which is to be a duplicate of a widely-publicized midwestern plant,

compresses

ments

-

[1941
7- //.

plant to turn out turbo-generators and turbines is un¬

new

active during

.

7 (1942

other States.

All

Age" in its issue today (March 19), further adding:

"The Iron
A

last few weeks, or

the

in

age and at

5,334,918

f 1942

England States,

New

con¬

Cirquit
•/,

; >

■

taken

portant midwestern war project is the plan by a leading steel com¬
pany to manufacture steel tubing for aircraft construction.
An idle
plant in Ohio is to be utilized in manufacturing bayonets. /
V

•.

.Cotton

In

In

.

end¬ establish-

February ing Feb. 28
(bales)
Year
(bales)" '
6,280,108
(1942
'•'893,745
•;
5,216,874
,
[1941 ; 793,428

States

United

"6,000 /subpoenas
.1' ■ ■'■-:/, /'
// -Y'

'

-

mos.

«

February 28

.

Wage-Hour Administration

yearly.; ' /
•

■

.

.">* : /

•

T ;

H

wasissuing
'•

,•

/••/

^

.

Cotton on hand

consuming public stor-

be an

said

burden,

during

-

7

f/':// '■ ' .1

The Justice Department,
tending
-

/ k-500-pound bales.)
' /. // ■,// ,•/•..
Cotton consumed

} .-'/

■/

■

,

(Mass.)

orders personally.

counting round as half bales, except , foreign which Is in

•

.'"""'7 " '

•-

"Sun" and the
Cudahy Packing Co., of Louisiana, the Court held by the nar¬
rowest margin that
Congress
purposely had withheld from
the Wage-Hour Administrator
the right to delegate subpoena
power to his aides and that he
would have to issue any such

■

.*

>

v

/

companies to produce their rec¬
ords for inspection.
From Asso¬
ciated Press accounts we quote:
Lowell

running bales,

in

iCotton
'

vital bottlenecks in war production have
are about to be taken, says

Moves to widen many
been

week

was

while

Chicago operations rose a half point to 104%,

of

capacity.
Youngstown

advanced a point to 100%/ : Eastern Pennsylvania
gained a half point to 91.5% and Cleveland climbed IMj points to
96%.
Districts with unchanged stdel production rates this week
are
Buffalo at 90%, Wheeling at 83%, Birmingham at 99% and
South Ohio River at 88%.
Y
,Y/
Y
'

of deliveries of machine
the" high-rated user to place such

the timing

in

coordination

of

Lack

with the actual ability of

tools

.

restrictions

Further

ministrator's
cated

in

the

the

on

were

powers

following

Ad¬

indi¬

in Wash¬

wool were responsible for a

and

cotton

tile

fractional gain in the tex¬

Higher quotations for Southern pine, brick, and lin¬
resulted in a substantial rise in the building materials

average.

oil

seed

ington advices Mar. 9 to the New group
"Times":

York

it

On the

basis of last Monday's
[Mar. 2]
decision saying that
the Wage and Hour Adminis-

,

"

index.
The miscellaneous commodity average was higher
gains in the prices of feedstuffs.
The other groups in the
composite index remained the same as in the preceding week. .
i-**- During the week 24 price series included in the index ad¬
vanced and 13 declined; in the preceding week there were 26 ad¬
vances and 10 declined; in the second preceding week there were 17
advances and 15 declines.
" vr .♦ •y/;- ■
due

.

tration

lacked power .to- dele¬
authority for issuance of
subpoenas to a subordinate, the
Supreme Court today reserved
a
lower court ruling requiring
the Cudahy Packing Co. to pro>'•: duce books and records for an
investigation of its plant
at
Newport, Minn.

gate

to

■/.

V

'/

COMMODITY PRICE INDEX,

WEEKLY WHOLESALE

'/'•/,,

.

•

The action
a

citing

as

a

the

Foods

25.3

Co.

the

•

Cudahy Packing
of Louisiana and involving

sota

•

issue

same

in the Minne-

as

controversy.

Other

•

_____

Cottonseed OiLr

Cotton

—2.30487cjmonth ago_/w_^/i___'_-_^/i_2.30467c.
year ago___—
—2.30467c.
week apro__——;

Miscellaneous

8.2

Textiles

7.1

Metals

6.1

Building

Chemicals

and

materials

Fertilizers

.3

1941

products

93.7

States output.

117.3

135.5

All

100.0
on

2

2.24107c.: Ajrr.

183.8

183.6

182.3

99.1

1939

__2.35367c. Jau,

3

2.26689c.

May

16
16

4

2.27207c.

Oct.

18

9

2.32263c.

119.8

119.2

127.0

126.8

113.3

113.3

/

nificant decisions in three labor

]

cases.

\

86.5

1938

__2,58414c.

93.3

1937

-.2.58414c,. Mar.

113.3

102.1

1936

__2.32263c.

1935'' __2.07642c. Oct.

could
,

•

'

be

not

the

Federal

Act

of

prosecuted under
Anti-Racketeering

1934

for

alleged

using

methods

strong-arm

to

make

employers hire union members.

>

drugs

—
,

:

groups

combined

1926-1928 base were:

!•

under
ment

.

7

which
from

Wisconsin

Peace
a

union

was

picketing and

which- had -been
_

of

Act

-

Employ1939,

enjoined

boycotting

attended

yiolence. J.




in

by

1:

Jan.

4

2.05200c.' Mar.

10

2.06492c.: Jan.

8

1.95757c/Jan.

2
2

127.1

127.3

112.8

1145.9

116.5

L934

1104.4

104.4

103.4

1933,

135.0

132.0

117.4

1932

__1.89196c. Jul.,

5

1.83901c.

Mar.

1

120.3

120.1

104.0

1931

__1.99629c. Jan.

13

1.86586c.

Dec.

29

1.97319c.

Dec.

9

104.4

2.15367c.

Apr.

24

__1.95578c.

Oct

3

120.3

.

-118.9

118.9

118.0

105.8

1930

2.25488c,

115.3

115.3

•114.0

; 102.1

1929

_t_2.31773c<

103.8

103.8

103.5

99.8

124.0

1123.7

1121.7

101.4

tRevised.

Jan.

7

May

28

Pig
17.

One

week

One

month

One

year

1942,

1.75836c.

May

,2.26498c. Oct 29

Iron

$23.61
~ 1

ago
ago.

a

i

"_$23.61
23.61

;

23.61

ago
averages

for basic iron at Val¬

furnaces and foundry iron at Chicago,
Philadelphia, Buffalo, Valley and Southern

ley

It

D. E. Gamble In WPB Post

D. E. Gamble, of Borg & Beck
of the Interstate Com¬
Division, Borg-Warner Corp., has
merce
Commission,
that
the
been named Assistant
Chief of
ICC
had
authority to impose
Heavy Ordnance for the W ar Pro¬
conditions for the protection of duction Board.
Mr. Gamble has

protest

employees in railroad abandon¬

been

ments.

Manager

•

The

Court

also

ruled

today,

Vice-President

of Borg

sion since 1929.
he also served

in

a

and

General

&;Beck

Divi¬

.In 1940 and 1941

as

President of the

tips col¬ Pump
Engineering Service Corp.,
after the a - Borg-Warner
subsidiary
in

5-3 decision, that

lected

by

wage-hour

red

caps

law

was

enacted, Cleveland,

could be considered part

minimum

fnC.;ApJ'f-

wages
.

was

largely

re-

of the sponsiblie for the formation and

required

iiiuf./.

and

•

n-vOiv

by

success

of- the Spring

Division of

iron

at

Cincinnati.

High
1941

_____$23.61

"

.

Low

f

-

-

Mar.

20

$23.45

The American Iron

that

20.61

Sep,

19.61

Jul.

2
12
J' 6

1937

23.25

Fob.

16

telegraphic reports

it

$22.61

the

March

industry will be 97.9%

9

/'or.

24-

Kok —6

—17.83

May

U
|
14

1934

17.90

May

1

16.90

Jan.

27

16.90

Dec-5

--43.56

14.81

Jan.-

5

13.56

Dec

6

15.90

Jan.

6

14.79

Dec

15

18.21

Jan.-7

15.90

Dec

16

18.71

May -14

18.21

Dec

17

$19.17 a Gross Ton

I

______

—___rT

18.73

Aug

r..w

3

Jan.
,

Steel Scrap

,

•.

March

One

1942,

17,

—$19.17

week- ago_

ago_____i__-__i_u-—19.17
ago
J
—20.33

One month
One

year

Based

heavy

1

No.

on

quotations

scrap

to

burgh, Philadelphia,

melting

consumers

at

steel
Pitts¬

and Chicago.
Low

High

$19.17- -Apr -lO

1941

i__$22.00

Jan.

7

1940

21.83

Dec

30

16.04

Apr.

22.50

Oct*

3

14.08

-May

15.00

Nor.

22

11.00

Jua

7

21.92

30
Dec 21
Dec "10
Mar/13
Aug
8
Jan/12
Jan. ' 6
Feb/18
Jan. "29

12.92

>Nor.

19

12.67

Jun.

9

Apr.

29

-Sep.

25

1938

ZZl-

1937
1936

,

17.75

-

1935

—

13.42

1934

13.00

1933

12.25

1932

8.50

1931

11.33
r.

had

15.00

17.58

1929

on

-

Mar.

9.50

6.75

6/43
8.50

.

9

16

Jan'..
Jul.'

3

Dec

2.9

5

11.25

-

Dec.

9

14.08

■•Dee,

3

March 16 announced

received

of capacity

10.33-.

,

indicated that the

steel capacity

for the week beginning

16; compared With 97.4%-one week ago,' 96.2% one month ago

and 99.4% one year ago.

0.5%

20.25

Mar.

19.74

operating rate of steel companies having 91% -of the
of

Jan.

18.84

and Steel Institute

which

23

1936

1930

2

Jan.

Dec.

1935

1939

Gross Ton

•; ';

.
on

19
21

1929

1T45.8

——,

'

the

28

Df*.

Sep.
'.Tim.

1930
-

..

127.5

March 14, 1942, 96.6; March 7, 1942, 196.4; and

ruled, in a case filed by
railroad
unions and over the

2. It upheld an order issued

;

Jan.

2.30467c...

.

146.9

Based

3.

1. It held that a labor union

„

•

/

124.5

120.0

.

-

,

,

machinery—"

1941, 79.0.

March 15,

Low;

Jan.

,

22.61

1932

/.2.30467c.

Low j

23.25

1931"

1940

/
..

1938

1933

United

the

Z;

,

1941. __2.30467c.

March

■^Indexes

strip. These

80.2

The Court also delivered sig,

High

80.0

of

78%
>

93.8

„

follows in Associated Press Wash¬

ington advices that day, as given
in the "Baltimore Sun":

represent

158.7

*

Farm

March 15

1942

131.8

139.6

materials—.

Fertilizer

on

Feb. 7

1942

133.4

__——v ■

.3

Court

hot and cold-rolled sheets and

March 7

159.0

commodities————

.3

three

Aero

.—-—

1.3

in

Ako

136.0

17.3

on

Week

steel bars,
black pipe,

weighted index based on
beams, tank plates, wire, rails,
A

/

-

__/_/l$23.45

1939

1940

133.8

Livestock

10.8

2.30467c. a Lb.

1942,

High

-

Steel

Finished

March 17,

..159.0

_i_",

labor

ruled

Year

\YYYYYYYYY,:Y "'h\YyY.-Y
COMPOSITE PRICES

"IRON AGK"

*: i36.i /
,

Products

Farm

23.0

by the Supreme
Mar. 2, were noted as

decisions

cases,

Month

122.3

121.6

-i.—-

Fats and Oils

of the

case

1942

.

precedent last week's decision
against the Administration in
•

Preceding

March 14

Group

Total Index

THE

■

One

completed for another month,
waiting for

plants are losing valuable time

war

badly needed equipment.

this

One

Latest

Each Group
Bears to the

taken through

was

order

formal

..

.

other

•

■

Week

-

•

.

..

_

-v

Age" two jib borers were delivered a

plant which will not be

month ago to a

Meanwhile

In the latest case brought to

equipment.

attention of "The Iron

the

One

National Fertilizer Association1

n935—1939=100

time for much war*

tion

•

Compiled by The

result in a loss of produc¬

equipment into operation-continues, to

from

the

This represents an increase of 0.5

preceding, week.

point or

The operating rate for the

week
and

beginning March 16 .is equivalent to 1,663,000 tons of,steel ingots

castings, compared-to 1,654,500 tons one week ago,-1,634,100 "tons one
month ago

and 1,604,200 -tons-one year ago. -

of.steel operations since March 31,1941,.

-Weekly-indicated rates

follow:

■

Volume 155.;

mi—

-w

31—_™_99.2%

Mar

Jly

99.3%
Apr 14
98.3%
Apr 21i—
96.0%
Apr 28——_—94.3%
7__

Apr

May

5

May

12

May

10_r
26.

May

■Oct

1.94.9%

Oct

98.4%

Jail

—95.2%
i_96.0%
_97.b%
96.3%
—95.6%

Oct

2U

97.8%

Jan

12;

Oct

27

99.9%

Jan

19

•"7_—

14

Jly

Jly

,

Jiy

21
-

96.8%

Aug

4
11

99.2%

Aug

18—1'—:—96.2%

Aug

—<9.9%

2—

99.2%

9—

tfo.cy*

Jun

16—

99.0%

Jun

23—

.-99.9%

13

25_______96.5%
Sep
2
96.3%
Sep
8
_96.9%
Sep 15
__96.1%
Sep 22
96.8%
Sep 29
96.9%

1942-r

3—-I*.— 98.2%

Nov

Aug

98.6%

Jun
Jun

6-J A—98.1%

91.8%

Jun ,30____

i

.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4056

jail

Nov

10

96.6%

Feb

Nov

17—

97.0%

Feb

Nov

24

Dec

1

Dec

8—

'

,r

-

'

-

__93.8%

5—

___95.1 %

:——95.0%

,26——94.6%
2_:
95.0%
-95.5%

9

95.9%
—97.6%

Feb

16__

Feb

23——96.3%

97.5%

Mar

Dec

15

._97.9%

Mar

Dec

22

93.4%

Mar

Dec

29

96.1%

__96.2%
97.2%

2

9.
97.4%
16—1—97.9%

of the

lack

transportation
the

crude

of

adequate forbidden

facilities

from

the

to

move

supplies

producing full

to the refineries in the East

areas

Not only have sub¬
taken a substantial toll

marines
of

coast-wise

vessels have

Army

and

tankers, but
been taken

Navy

over

Much

use.

eries

for

sumers

ties

of the iron and steel mar¬

order

in effect

was

other

than

allowed
fuel

to

oil

elec¬

such

J

price
*

-

changes

-

(All gravities where

the standby facili¬
being used to the fullest

or¬

no

-

Prices of Typical Crude
per
Barrel At Wells

con¬

Just before the curtailment

were

posted.

deliv¬

make

to

allowable for

State.

There

unless

are

der

the

Suppliers

possible extent.

East Coast

on

proves the certified

standby facilities using
natural gas.

of

the

situation ruled last
summer,
when a 7 p.m. to 7- a.m. curfew

accept
additional
they are making

power

or

not

are

many

to

v

of

or

tricity

1165

unless

use

fuels

Coast States.

same

jbioldLiUiiiiiliidiiMliJlililit

"Steel" of Cleveland, in its summary

because

degrees

not

are

A. P. X.

shown)

Bradford, Pa.
Corning, Pa.

$2.75
1.31

was

issued, it became known Eastern Illinois
service
stations,
following, the that a Special' Federal Committee Illinois Basin
loan of many tankers to the
Brit¬ had
met
in
Chicago to study Mid-Contin't, Okla., 40 and
ish. The curfew was lifted when methods
of speeding the
deliv¬
above

1.22

__

kets,

March 16 stated:
;■
\v'_
That production and shipment of finished steel for war orders
may be more closely related to sequence of preference ratings, re¬
gardless of the products involved, the War Production Board has
ordered diversion of raw steel to essential needs to the fullest possible
on

cjxtGrit

'

r

* *

"'

•

•*

*

^

v

•

»v

■

j

•

'

'

•

tankers» were
returned
to
their American owners late in the
■'

:year.

+>"

■

the

I '

,

:A

y

■

eries

of

Midwestern

1.37
1.25

petroleum

Smackover, Heavy
Rodessa, Ark., 40 and above
Appointed by Petroleum Coordi¬ East
Texas, Texas, 40 and
products

to

the

East

Coast

0.83

area.

1.20

"Normally, Mr. Ickes pointed nator Ickes, the Committee is now
and follow through semi¬
above
1.25
being given to needs of out," 95% of the approximately studying suggestions made at the Kettleman
Hills, 37.9 and
finishing mills in meeting priority ratings on all products in the 1,700,000 barrels of oil used daily recent meeting of representatives
over
1.29
in the East is
order of their importance.
brought here by from the PCO and of 32 major Pecos
Thus steel will be supplied for A-l-a
County, Texas______ 0.95
Many of. these tankers oil companies operating in the Lance
orders to the limit of mill production before lower preferences are tanker.
Creek, *Wyo.__
H 1.12
have either been sunk or trans¬ Midwest and
served.*
' ;V
Midcontinent fields. Signal
Hill, 30.9 and overA 1.23
ferred to military
Many producers have been following a( similar plan for some
service, or serv¬ Also at the original meeting were
Mounting stocks as a result of
time and the application of the new drcter will not require much ice in other areas. Anyone, I am five 1 representatives
from
the
the transportation bottleneck
to
change in practice. Buyers of steel below top priority will be most sure, can see that this has dis¬ East (District 1).
Some of the
affected.
To meet the emergency the latter are making greater located our transportation opera¬ methods of speeding movements the major consuming areas along
The process is to start with the ingot
finished steel, at each step due regard

•

efforts to obtain

high-priority war contracts.
of some steelmakers less tonnage was booked
in the first two months this year than in the corresponding period
last year. This is accounted for in part by the fact that a year ago
many buyers for civilian production were seeking coverage, while
now there is practically no pressure of that sort.
•
'
:
Steel ingot production last week receded 1 point to 95V2%, due
in part to scrap restriction and in part to repair work by one pro¬
ducer, which caused idleness for the entire week. Detroit advanced
3 points to 87%, St. Louis 5J/2 points to 83 V2 and Youngstown 3
points to 94. Chicago declined yj-point to 103%, Pittsburgh yj-point
to 95, eastern Pennsylvania 2 points to 88, Cleveland y2-point to 91,
Wheeling 4 points to 8iy> and Cincinnati 14V2 points to 80%. Un¬
changed rates were: Buffalo 79y>, Birmingham 95 and New Eng¬
In the experience

tions.

The

being

imposed

received in

districts

some

efforts

sive

to

of

one

any

incon¬

be determined.

;

'

prices can
:

-

•

ferromanganese after April 15,
although current prices on other ferroalloys have been affirmed for
second quarter. On advice from OPA that a decision on requests for
higher ferromanganese prices will be made early next month present
prices have been extended only to April 15.
'
Farm implement manufacturers may be curtailed and be unable
to continue

some

may

be allowed

on

lines, due to inability to obtain special shapes and

large rounds, which enter largely into their products.

Automobile
accessory manufacturers, losing their principal outlet, are converting
to armament orders, for which their equipment is suited in most
cases.- Conversion to war production is on the increase as subcon¬
tracting opportunities multiply in the effort to expedite production.
Steel ingot and castings production in February missed by V\
of 1% the all-time average weekly rate

established in October, 1941.

Average weekly output in February was 1,631,278 net tons, only
3,639 tons less than the record of 1,634,917 tons per week in October.
Total for the month was 6,525,111 tons, compared with 7,129,351
tons in January

and 6,237,900 tons in February, last year.

The steel

industry operated at an average rate of 96% of capacity in February.
Evidence of high speed at which the industry is working is
apparent in the new record for February shipments of finished steel
set by the United States Steel Corp., with 1,616,587 net tons. Ship¬
ments for two months this year totaled 3,355,480 tons, nearly 4%

shipped in the same period last year.
based on ceiling prices, have undergone no
change and remain at the level of several months. Finished steel
composite is $56.73, semi-finished steel $36.00, steelmaking pig iron
$23.05 and steelmaking scrap $19.17,
HHa;
than 3,230,905 tons

more

Price

composites,

Petroleum And Its Products
_

in gasoline deliveries to service stations in

A reduction of 20%

the Eastern seaboard and Pacific Northwest States which have been

curtailment of tanker transportation because of submarine
attacks upon coastwise shipping was ordered March 14 by the War
Production Board, acting upon the recommendation of Petroleum
hit by the

Coordinator Harold L. Ickes, who in turn was acting
ommendations

of

The WPB also or¬
dered that service stations on the
industry itself.

East
12

confine their

Coast

hours

sales to

72

and

daily,

upon

the

rec¬

petroleum^

the

hours

reduction

100,000
19

filling

States

Columbia
the

*

stations

and

the

were

"curfew"

the

District

of

affected

order

by

issued

by

transporta¬

curtailment

order

vigorous

a

that

he

understand

from

Florida, who

"at

was

why

brought

protest

Governor Holland of
said

loss"

a

his

to

State,

and
to the north, had been in¬

some

tion."^'■

1

So far

as

ing

peak

companies

of

first

are

deliveries
of not

10

to

stations

quota

on

are just about on us
now," the Governor said in Talla¬

hassee^ adding that Florida must

do all it could to protect the tour¬
ists within its boundaries.
Just

one-third

during

days and not

a

the

before

than

more

within

the

month.

It

early
will

of

part

be

the

remembered

seasonal

needs which

.

,

than

more

month's

a

'•
supply¬
required to

VSv-yy.

'

is practicable

the

order

made

was

lic, the Governors of
England States issued

pub¬

six

New
state¬

a

ment

calling for the rationing of
gasoline apd oil vii a national

basis as "the only equitable and
effective way;to cope adequately
with the situation." Whether this

meet

of

first

all

"the

minimum, necessary requirements
users." Among those

of essential

classed

as

ernment

essential

nurses,

and

city

and

the

Gov¬

try

agreed

with

clear

beyond

some

curtailment

all

him

that

"it

argument
in

the

were

vehicles,

taxicabs.

school buses,
Approximately




is

that

use

physicians gasoline for ordinary civilian
Government, State poses is now necessary." It is

order

and

in

he pointed out that the oil indus¬

of

pur¬
nec¬

essary, not because of any shortage

of

.

oil,

he

pointed, out,

but

in

brought

bulk

another

gasoline prices

last weekend in the midcontinent
area.
A cut of V& cent a gallon

the

total

cuts

for

the' last

month total

l/z cents a gallon', the
previous reductions having

two

.

been

of

V8

and

y4

cent

The

gallon,

a

respectively.

■

easing

off

in

the15fnid-

major cities in the compilation of
the

American

Petroleum jlnsti-

tute, The reports set the March 1
price at retail at 20.04 cents.a gal¬

lon, against 20.09
and

18.17

cents

month earlier

a
a

gallon

comparable 1941 date.
service

age.
start

of

14.07

station

the'

on

Thej

price

aver¬

at; the

March, before taxes,

of
gallon compared
cents on Feb?
fP and

cents

with

14.12

12.27

on

a

March

Within

1

day

a

curtailment

last year.
or

order

had been issued with prior knowl¬

Coast

Petroleum Coordinator Ickes that
office
was
doing all in its

stationary engines,

and

aft^r the

so

for

the

East

Pacific

Northwest
curfew, edge
of
the
Washington
an¬ areas was
announced in Washing¬
many dealer? would fill all orders
nouncement by the WPB
could
ton, signing of the official ra¬
until their tanks were empty and
not be ascertained.
tioning order for Canada, which
then they closed down until they
will
Highlighting
'
the
affect the sale of gasoline for
week,
and
could obtain fresh supplies.
Only
giving proof to the statement of some 1,600,000 motor vehicles and
a
relatively small number held
that

in

last

summer's

down purchases but this condition

will be impossible under the

new

schedule since it governs bulk de¬
liveries to the service stations.
The

curtailed

curfew

order

cepted

as

actual

of

were

the

card

system

Coast

committee

clamp

on

stations

of

This

area.

by

the
was

industry

suggested

the

full deliveries to service
the

and

12-hour

daily

shutdown of the stations. The

ommendations
a

an

in

also

the

which

ac¬

of

rationing

consumers

recommended

and

generally

forerunner

gasoline to

East

delivery

telegram

were

sent

rec¬

contained

Mr.

Ickes

in

by

A. Brown, President of the
Socony-Vacuum Oil Co., and gen¬

John

chairman

eral

committees

The

trict.

of

for

the

the

wire

industry

eastern

stressed

dis¬

the

in¬

dustry's belief "that enough tank
car transportation must be taken
away from other districts to in¬
crease the petroleum supplies for
this district (East) to the extent
that the railroads
business

even

if

can

this

handle the
means

tioning for districts No. 2

ra¬

(Mid¬

west) and No. 3 (Southwest), if
they cannot serve their business
the tank

with

cars

remaining for

them";

his

aid

to

power

the

movement

petroleum

products

Coast

through tank

area

liveries,

the PCO

was

ment that rail tank
of

petroleum

the

East

in

of

East

car

de¬

announce¬

shipments
products into
car

and

Coast

the

hit

area

another

weekly high during the first week
of March at 435,086 barrels." The
figures just reported to this office

indicate better than words the
tent

which

to

the

ex¬

of

Coordinator

Davies

said.

A drop of 488,855 barrels in
daily average production of crude
oil in the United States during
.

The

fuel-oil

days and if fuel-oil burning
equipment is specified in the con¬
struction contract.

exceptions

are

Otherwise,

no

made

except as
specifically authorized by the Di¬
rector

of

Industry Operations

the War Production Board.
sumers now

using fuel oil

of

Con¬

are

also

out

and

announced

provides for

of

which

mo¬

other

purchasers must'
appropriate number of

when

making purchases

of gasoline and which the
has to return to his

dealer

supplier.
'
Eight of the company's refin¬
eries are now
equipped with fa¬
cilities to use the Houdry
process
of catalytic
refining which "sub¬
;

Inc., told stockholders this week
mailing them dividend checks.

in

"At

the

off

lowest in
the

to

some

decline

3,526,580 barrels,
The bulk of

time.
in

Texas, the
"Oil
&
Gas
Journal"
report
showed,
where
two
shutdown
days resulted in a drop of 474,950
barrels in daily flow of crude.
was

Illinois and Louisiana also showed

lower production figures but out¬
put
in
California, Kansas and

Oklahoma climbed.

Stocks of do¬

691,000

March

7

barrels

week,

reported

during the
Bureau of
this week, total¬
the

daily

to

Texas

ceived

1,024,000

Railroad

barrels,

the

Commission

nominations

of

re¬

crude

oil

purchasers for 1,614,000 barrels at
its

April

Austin.
set

the

proration

hearing

in

The Commission will not

April

Petroleum

allowable

until

Coordinator Ickes

ap¬

first

refinery which the

started

company

timated

total

order

30

the

coupons

the

Mines

deliv¬

tear

or

octane

up

forbids

torists

marine

was

The order

books

coupon

the week ended March 14 carried

future installations
heating
equipment.

on

fuel-oil

in Ottawa.

of

industry is stantially increases the quantity
willing to go to assure, as nearly and quality of base gasoline stock
as
possible, the maintenance of which can be obtained from crude
adequate supplies of petroleum for the manufacture of aviation
supplies in the important consum¬ gasoline," John A. Brown, Presi¬
ing areas of the East," Deputy dent of Socony-Vacuum Oil Co.,

gasoline curtailment order came a. mestic and foreign crude oil were

prohibition

thousands

many

oil

The choice as to hours the WPB. The Pacific States af¬ eries for use in
ing 260,064,000 barrels. American
any new equip¬
and days was left to the indi¬ fected were Washington and Ore¬
ment unless installation is com¬ crude stocks were up 891,000 bar¬
gon
vidual operators.
although
in
this
instance
pleted within 30 days, or in any rels, but this was offset by a drop
Under the terms of the new rul¬ there was no order shutting down
of 200,000 barrels in holdings of
converted
facilities
unless
the
service stations for half of 6each
ing, the average motorist will
conversion is completed within 10 foreign crude oil.
have to curtail his gasoline con¬ day issued.
days.
An exception is made in
Although the Texas crude pro¬
In a
sumption even more than 20%
statement from Mr. Ickes the case of new constructions if duction quota for March recently
since
service
stations were di¬ accompanying the
announcement, foundations are completed within was
curtailed
200,000
barrels
to

Coast

continent price structure Was1 re¬
difficulty and, at the cluded in the WPB order. "We
same
time, furnishing the means shall insist on fair treatment and sponsible for a fractional drop in
the retail price of
of dealing with a serious situa¬
gasoline' in 50
consideration
of

weekly.

rected

East

made

The

forth

minimum of

Almost simultaneously with the

in

in

tion

.

commodity in a way that will
completely equitable to every¬
body, this order has been pre¬
pared with the air of providing a

alterations

methods and the
pooling of
transportation facilities.

,

commodities, including scrap, until its effect on ceiling

Higher prices

the

include

no
use

time is required for its preparation in dealers' yards and it comes out two-thirds
during the first 20
slowly. Total available from this source is not as large as had been days. This is designed to prevent
stations from selling without re¬
expected.
"
'
Request has been- made by OPA to the Interstate Commerce striction, with a consequent short¬
Commission to delay application of the 6% freight increase on several age after supplies are exhausted
»

of petroleum products to the East

a

make

along

no

serious

be

basis

continue

tonnage

cause

even

is

Although there is
that I know to limit the

dormant

various
lines and produce some results but total achievement is not impres¬
sive. Material from automobile wrecking yards is being moved but
uncover

or

which

reasonable

a

venience.
way

essential change, better volume being
while others find receipts curtailed. Inten¬

no

is

It should

one.

hardship

land 95.

Scrap supply shows

limitation

aviation

that the

50% greater
he said.
Price
March
a

to

make

100

gasoline, it is

es¬

output is about

than

the

old

way,"
.

changes

follow:

14—Buik gasoline

cut

was

Va cent

gallon in the midcontinent.

U.

S.

Gasoline
Car

New

(Above

Lots,

F,

O.

65

B.

Octane),
Refinery

Secony-Vac
Tide

$.088

Water

Oil

_I.HI
_I~II
?"

Texas
♦Shell Eastern

Other

.088
.088

.088

Cities—

Chicago
Gulf

.06-.06%

Coast

06- 06

Oklahoma

H

'.06-!o6%

♦Super.

Kerosene,

41-43
F.

New York

Water

O.

B.

White,
Refinery

Tank

(Bayonne)

054

._?!

Philadelphia
New

~~

Texas

Orleans

....

Tulsa
Fuel

N. Y.

Oil, F. O. B.

Refinery

'

04

4.25-4.625

Terminal
$1 35

_

2 15

Bunker

I

C

Philadelphia, Bunker

C

™~

Gas, Oil, F. O. B. Refinery
(Bayonne)

Chicago, 28.30 D

7 plus

1.30
1 3>»

Coast

Halifax

Tulsa

or

(Harbor) Bunker C

Savannah.

N. Y.

'054

04%-.04%

Diesel

Gulf

Car,

$053

Baltimore
North

Tank

York—

or

gs

iHo
Terminal
$ 04
053

t03 y

-

1166

THE COMMERCIAL & FINANCIAL CHRONICLE

(Continued From First Page)

claiming the sinking of
cruiser Augusta, which
apparently
was
not
engaged.

Lend-lease

Netherlands

scribed

in

activities

the

mechanism,

report

the

de¬

were

prime
which the

as

through

a

U. S.

ties

their

Somewhat

/

in

12 to

'

losses in the

days of the closing of the

comprised

four

:

four submarines, five "special
submarines" and one "special

air

vessel," along with 27 trans¬

Nations

are

.

The

war

be

President
Roosevelt pointed out, only by
contact with the enemies and by
attack upon them.
"That takes
time," he added, "for the United
can

Nations need

equipment
Success

won,

and still

more

and

will

more

transportation.

control■: of
in

the

the

-and

sea

ports.

the

struggle for Java was in¬
dicated in a score of ways, before
the final statement

makes

ument

small

air phase of the battle,
Some

dearly, at the
price of defeats and losses.
The

the

offensive that the United Nations

Battle

come

delay

result

of

the

damaged,

paired.

v.

losses

announcing

in

Sea

Java

able, for gathering of the in¬

riers,

formation required some time,

stroyers,

strength
that

will

that

take

we

combined

the

entire

thank the decision

we

took

we

and

For

possess.

strength

a

can
year

lease by
of

for

$48,006,650,000,
noted.
in

the

Actual

the

United

$1,411,000,000, and actual

all

The

naval

things

Netherlands

the

lend-lease

report
tures

•

war,

Sea

of

.

ex¬

stated
in

the

effort,

that

were

whereas the

sum

month

were

the

to

made

in

disparities of appropriations, ex¬
penditures, deliveries within the
United States, and the vital figure
of exports.
The deliveries were
described as inadequate, because
of the time and effort required to
revolutionize

tem

and

industrial

our

,

of /the

in

the

officers,

small

a

this

•:

the

The

stated.

report

The

bulk

of

the
our

the

num¬

ves¬

Surabaya to in¬

and

The

now

clear,

however,

have

and

screen

after

vanished

brief encounter.

a

Japanese

of

confirmation ,in

no

which

missions

must

cruisers

destroyer

nese

and

two

battle¬

flotillas

denial

British

a

confirm¬

or

Nothing was said in Lon¬
■

,

.

(

*

.

L

,

were

other

and

vessels

nu¬

Pacific

Southwestern

Sea

Battle

//v/

Saturday

by

American

Governments,

the

|

than

and

jointly,

of the naval battle off the north¬
shore

ern

Java, Feb. 27 to
1, in which a strong Jap¬

March
anese

of

force overwhelmed

modest

fleet

a

more

of

World

to

come

over¬

series

"under¬

of

afloat

tried

to

their

make

way

ports

United

States

losses

comprised

the heavy cruiser Houston and the

destroyer
available
to

Pope,

1,000

word

no

men

the

on

Britain

lost

and

destroyers
Jupiter and

the

being

to the fate of the 900

as

the

two

cruiser

ships.
Exeter

Encounter,
Stronghold.

the

their

are

<

_•*

demand

independence.

v

If

'

wholeheartedly into the fight
against: the Japanese, much

;

t

v
,

continent with their Fleet.

•

) Chinese troops continue their
valiant struggle against the Jap¬

of

in

Burma; is

battles

shift

The

Arthur

So,

extremely

also,

reports

are

within

China, where
Japanese units - were
The

week.

Burma

to

a

in

and the ar¬
of
Accompanied by

Australia

reinforcements.

his

of

staff

officers,

Gen.

British authorities announced last

Saturday full details of the sink¬
ing of three U-boats, and Amer¬
ican forces also

Gen.

the

the

contend

far

has

of

officers,
one

War

Under

disclosure

beyond
the

the

of

for

a new

so

the

*

policy
'

ship

sinkings,
generalities as

such

number

from

MacAr¬

Gen.

appears

of

unamed

Not

a

'

rescued

men

vessels

bottom.

in

Department,

the

step

sent

day

to

goes

for

the

a

without

*•.

some

that indi-

rescue

'

cates the sinking of a tanker
or

it-

collier

freighter.

or

»

Italian authorities claimed
last

week

have

to

late

information

that the British liner Queen

an-

Mary,

81,235 tons, had been torpedoed in
the

South

damaged"

Feb. 22,

on

however,

report of

of the brilliant

given time to perfect
ments

solution

a

found

adopted last week, the Navy
no longer permits

to

exploits of the Pacific War.
The

v

un-

modifying

Department

by,
Transfer

self to be

that

been

problem

thur to Australia, along with
his family and a number of
staff

menace

are

„

and that Gen. MacArthur

(

to

ac¬

determination

■

against

the losses, but it would be idle

Bataan, it is indicated, for
Philippines
remain
under
,

submarine

questionably

Mac-

sphere of

effective.

are

Counter-measures

base in Australia will

change

ordered

of numbers

his wife and child, and a number

hunting in packs
shipping lanes to the
Caribbean, to South America and
to
Europe.
That the enemy is
suffering heavy losses is clear, for.
our

more

stated that Mr, Roosevelt had

United Nations forces,
rival

of

wider

a

known to be

along

Gen.

I'l nouncing the aerial transfer,

the

of

now

MacArthur and his valiant group ot
American
and Filipino
soldiers
held out against a heavily
su¬
perior numerical force of Japa¬

MacArthur to

Command

Australian

For

months,

MacArthur.

of General Douglas

than 24 hours

more

A

Roosevelt.

three

Now that the Japanese have
the
virtually completed their conquest

continued for

thereafter.

Australia.

British

the

of

may

Bataan Defense

President

hold

announced the successful transfer

announced last

were

who

be induced to enter

can

important
signifi¬ defeated this

shadow the Pacific War.

not

Ocean

of

were

of temporary refuge
through the Sunda Strait toward
Java

which

tion from

just before midnight, Feb. 27, and

from

Full details

only in

prompt

■«

and

anese, quite as they have been do¬
of ing for more than ten years. The.
junction of British and Chinese

now

carriers

don.

At least

are

the

India

control of the Malay heartening.

theaters

other

War

nese.

northward

water explosions," which seemed
- engaged
in
to indicate the presence of Japa¬
tasks, and also
are
studying
continually
the nese submarines, destroyed two
equipment and training of huge Dutch cruisers and a number of
armies for mechanized warfare, United Nations destroyers.
Most
it appears.
Problems of supply of the havoc was occasioned in the
are among
the principal matters closing phases, when ships still

with

for

h

Nationalist

leaders,

on

confer

to

ships had been sent to the Indian

Steaming out from the Nether¬
lands naval base at

war

cope.

person

is in many ways the most

stands

,

groups

ot

Barrier must be conceded, on the
other hand, and that circumstance

key points along the vast Ma¬
on
remaining weapons to our
Allies.
hand, and some aircraft carriers lay Barrier, the possible further
'./v;
Comments also were included and submarines apparently func¬ moves, of the enemy in the South¬
in the report on the various mili¬ tioned as well, on the enemy side. western Pacific Ocean area are a i
What part, if any, submarines of matter of deep concern. The ap¬
tary and supply missions sent by
President Roosevelt to other coun¬ the United Nations took in the prehensions with respect to Aus¬ ;
tralia lessened sharply on Tues¬ /
tries.
Such missions had arrived battle was not indicated.
The
main
in Russia, China, North Africa and
engagement began day, however, when Washington

vital

united

r

to

been

aircraft

is

merous

some

has

Australia, in the

j,.. Japanese

admission

now

Japanese Navy, with its
units
admittedly
almost

unimpaired,

•

military

forces

into the Indian

the

among the enemy vessels, two of
them 8-inch gun ships. Two Japa¬

These

the

battle.

that

the

known to be in India.

Moslem

is

now

India,

Indian

forces

full

will

but

sunk,

heavy

being turned back from

It

armed

now

Cabinet,
to

way

t:

Aus¬

but

Gen. MacArthur.

provided in Washington.

was

Japan¬

factories,

Iran, when the report was sub¬
mitted, and a further mission is

in

Japanese had the upper
hand, largely because of their far
superior strength at the point of

Fleet

ese

Java.

a

our

the

,

is able to sail
Renewed - emphasis
has
been
Ocean, using Sing¬
given the long and stubborn de¬
apore, Surabaya and Amboina as
fense of Bataan Peninsula, in the
bases.
British
communications
Philippines, by the departure of
with
India
may
be threatened.
General Douglas MacArthur for
Japanese statements at Tokio, last
Australia, on the express order of
week, suggested that two British

days of February told of

nine

pressing needs of
forces, and the
construction of new ships to carry

Churchill

'

aid must wait upon the tooling of
own

his

much

commander

Nations

i

perturbing,

fact

arrived

indicated,

was

successful

United
sent to

ation;

market-place,

is

base

Nations.

authorities,;

forces

it

most

chased

the

tralia,

state¬

Ocean, but this report may have
been a "fishing expedition," de¬
signed to gain information by way

in

;

It is clear that large naval

ities.

Nations

destroyers and other

last

at

reinforcements

Java

when

United

in

Surabaya, the
production demanded of an ef¬ United Nations ships sped head¬
fective
arsenal
of
democracy. long toward the Japanese squad¬
Lend-lease tanks cannot be pur¬ ron, which laid down a smoke¬

of

Cripps, Lord Privy Seal in the

available to the enemy, if he can
alternative route can be prepared.
be' hold on for a year and consolidate
sent to Far Pacific waters, to off¬ his position. The China Sea is al¬
Atlantic Shipping
to be regarded as sealed,
set the losses, and this must be most
Steadily the toll of merchant
done at a time when ships can ill while Japan has aerial and naval
ship losses off our own Atlantic
in the region. The Coast
be spared from other duties.
To¬ superiority
increases, with consequent
against
Japan
from
the serious effects
kio announced last week that the fight
upon the already
U. S. cruiser Marblehead had been southward will be a difficult, up¬ straitened
shipping position. Ger¬
encountered in the Indian Ocean hill struggle, regardless of events man and Italian submarines are

'?

considered.

United Nations seemed to succeed,
for first reports in the closing

sys¬

attain the volume

to

ways

;<

;

Japanese naval ability cant of the Pacific War. The enor¬ Road must now r be considered
was
under-estimated, along with mous riches of Malaya and the closed, on the other hand, and
all other Japanese fighting qual¬ Netherlands East Indies will be some months will
elapse before an

tercept an enemy line of trans¬
ports, screened by Japanese war¬
ships. In the initial phase, the

considerable

that

United

re-

that

out

the

to

as

128 merchant-

highly

were

made.

was

this

authorities

battle

sels set out from

$18,000,000,

year.

report

of

ber

increased to

Brief references

the

when

Fleet of five cruisers and

of

$225,000,000 last October, and
to $569,000,000 in February of
this

made pub¬

developed, under command of

relatively

the

expendi-

initial

March, 1941,

growth

of

the

land

and

V

Results of the Java Sea engage¬
ment

course

de¬

miscellaneous

Nations exaggerated.

dis¬

in

car¬

ment, and those of the United

also

the

our

and

000.;

the

before

that

ports amounted to $1,100,000.Illustrating

be

permitted

was

impression

conduct
/

is

It

far from candid

are

were

to

42

minimized

are

....

The incident added to the

country

to

had

news was

public

totaled

Nations

,:

seven

Japanese losses plainly

men.

ships

the other hand, that

on

•

the

at

to

India

over the military out¬
will have been gained.
But
look, appealed to London and
the military aspect of India
Washington for prompt assistance.
H
will
remain
somewhat
uncer¬
That this request has been amply
tain even in that event, for '
answered was made clear by the
the Japanese may
well enWashington statement on/Tues¬
deavor to blockade the sub¬
day. Not only have sizable aerial

the

twelve cruisers, 22

warships, and

obviously

from

lost.

as

elapse

lic.

to

deliveries

word

up

tressing

expenditures

$2,570,000,000;

eventually

to

report

time

same

for

clear,

lend-

amounted

hoped
which

too much time

Congress to the end

February

the authorities

given

today.
With that combined
strength we can go forward along
the steep road to victory."
ago

Appropriations

Premier

defense

of

uncertain,
in
more
than one.
Sir Stafford

f

with

this

position

;

concerned

re¬

by

battleships, three aircraft

unavoid¬

was

of

Axis

placed

made

Australian

had in

since

mains

,

plainly

must and will drive into the heart

the

cruiser

but

Heavy Jap¬

Darwin again
week, and

Port

on

vital

one

Aus-

j are

i

attacks by aerial bomb-.

were

the

(

United Nations naval
were

Japanese

i

large and

one

Japanese

been

of the

mention

no

ers
-

.

added that

Saturday. Unfortunately, the doc¬

;
-

northern

reported, in part.
anese

reporting, .these
Premier Hideki Tojo

losses,

issued last

was

In

destroyers,

at

points

Thursday, March 19, 1942

The

-

landing

possible

hardly to V,
doubted, and are already

be

:■/

But- aerial

bases.

and

tralian

>

to that date

war

attacks

attempts

the

effect that all Japanese naval

pooling their battle, and Australia announced
The
entire resources, first for defense her own losses last Friday.
fact that the enemy had gained
and
later
for offensive
action.

United

vV.

Japanese

a

statement of March

within

losses

Japanese

;

.

perturbing,

view of ail this, is

authori¬

Indies

East

conceded

few

a

cumbed to superior fire.,

in

erred

Foreign Front

H

Atlantic

while

and

"heavily
carrying 10,000
The ship'
endeavoring
to

North American troops.

was

was

arrange-

reported

reach the British base at Falkland

Philippines

Islands.

command.

No comment

in London

or

was

Washington

offered
on

this

Mac-

The boldness of the'
Maj Gen. Jonathan M. Wain- assertion.
Arthur flew from Bataan Penin¬
wright assumed the ground com¬ submarines' commanders was at-'
sula, in the Philippines, to his new mand on Bataan
tested by a British admission, last
Peninsula, and
base.
:
will
carry
on
the
fight.The Friday, that a U-boat had dam¬
Military""^possibilities w in the change in command, as it hap¬ aged two ships in a British West
great region of Oceania are nu¬ pened, was signalized by a re¬ Indian port. The Chilean freighter
merous, and for that very reason sumption of the Japanese attacks, Tolten, 1,858 tons, was reported
sunk by the authorities of that
the next phase of battle is uncer¬ after a lull of nine
days. As usual,
tain. Japanese attacks were con¬ the enemy attackers were thrown country, only 30 to 35 miles from
centrated on ports of the northern back with
heavy losses.; It ap¬ New York harbor. Uruguary dis¬
and southern shores of the huge pears
likely, however, that still closed, Tuesday, that the freighter
island of New
Guinea, directly more Japanese reinforcements Montevideo, 5,785 tons, had been
sunk off Haiti.
north
of
Australia,
and
some have been landed in the
interim,
moves also were made against the
and the assault now in progress
Berlin put forward the claim,'
islands to the northeast of Aus¬ may turn out to be the heaviest last
Sunday, that the submarine
tralia.
Australian
and
other of the campaign.
warfare off the American coast
United Nations aircraft contested
had resulted in the sinking of 159
_

,

British, Austral¬
ian, Dutch and United States war¬

Electra,

ships.

This battle proved to be
one of the most sanguine in naval
history, for thirteen ships of the
United Nations were lost, while

and the sloop Yarra.

Ruyter and the de¬
stroyer Kortenaer, while the de¬

many

the

stroyer

Evertsen

to the bottom.

and

ever, has every appearance of be¬
delaying
action by the exaggerated, for upon the out¬ variably magnified, but in the
heavy toll, losses ing a
United Nations, while forces are come of the
desperate battle may absence of British and American
indefinite, be¬
assertion that one heavy assembled in Australia and else¬ hinge the fate of India, and possi¬ official statements they are now

Japanese lost at least two and

suffered heavy damage to at least
six more.
That the United Na¬
tions
was,

time

had

lost

this

great

battle

of course, apparent some
before the Anglo-American

communique
successful

was

issued,

invasion

of

for the

Java

sig¬

nalized the outcome.

Australia

ships
Java

were

in accordance with Japan¬
claims/advanced immediately

sunk

the

cruiser

Perth

Netherlands

included the

cruisers

and De

was

damaged

the

and

moves -and
sent
airplanes crashing,

Japanese
a

enemy

number of ocean transports

This struggle, how¬

beached.

yond

an

Japanese

cruiser

was

sunk

other set afire and heavily

aged, while
was

damaged.
Houston

ese

as

Japanese destroy¬

one

sunk

and

Last
and

and

dam¬

three

words

Exeter

they encountered

others

from

the

were

heard

enemy

forces,

where

for

the eventual offensive

against Japan.
an

out-and-out

Australia

questioned

perts,

for

by

and

wealth is in

on

States,




can at least be presumed
they inflicted further losses
the enemy before they sue-,

Australian

time

military

of
is
ex¬

the bulk of the
population
and

that

it

conquest

this

at

forces. Vir¬

our

Front
was

reported

merchantmen, of a total tonnage
1,029,000.
Of these ships, 58

in of

the Burma

military situation dur¬ were claimed to be tankers of a
ing the past seven days, but the total tonnage of 442,000. The Ger¬
importance of that front cannot be man claims are, of course, in-'

bly

even

Indian

Whether Japan will attempt

all the ships lost were
named by the enemy, but Tokio

after the defeat of

change

As against this

much

tually

Burma
Little

of the enemy were

er

Actual results of the battle

lost

the southeastern

far. distant

frorq

any

ward

and

the

retreating north¬
Rangoon, established

the

of

China.

British

troops,
from

contact

over

with Chinese

above

the

last

forces,

the

,

.

occurrences

in

Europe

With the arrival of Spring only'

80 miles

devastated capital of
There'the attempt began
to hold the Japanese invaders in
check, and so far the results have
been.favorahle.
Burma.

Western

week-end

some

sole guide to
shipping war.

few days distant, renewed and
enlarged military operations in*

a

Western Europe are likely to de¬

velop rapidly.

All eyes in Britain
been

and the United States have

supply sys¬ when there is a campaign on to Whereupon Mr. Roosevelt told Dealers are now predicting the
in this ac-, abolish them, somenow manage Lowell Mellett, the head of the day when no; one will receive
to dig up something to prove that so-called and misnamed Office of more than $5,000 a year.
His ii*^
count,
which was based upon
Government Reports, to go ahead fluence, power, standard of living
British disclosures, with much of they should be coniinued.
In
this
be
determined
by
his
instance,
Congress and erect the building anyway. It would
the German ability to hold; out |
"position," the service he ren¬
in
the
face
of
heavy Russian proved that, notwithstanding it is being erected.
has
I
dered.
That
would
be
his
could
wholly lost its power, has
gratifi¬
give any number of in¬
blows.
The Reischwehr,' it was,'
frittered it away to the Executive stances of this kind. The point is cation instead of money.
This* is
further explained, organized anl
branch
that
the
we
by
way it is in Russia. Litvinoff,
giving it unlimited
get right back to where
ingenious "hedgehog" or "porcu-j
Russian
What purpose does the
money, it was still the medium we started.
Ambassador,
could
pine" defense system of fortified
between
the
people
and
the Congress serve?
Reflecting the not for tne life of you, tell what
points around a central military
bureaucrats.
In other words, the opinions of the American people, his salary, his income is. He only
stronghold, which the Russians
recently been expressing knows that he gets what he needs
had to take in order to infiltrate people have recently been raising it has
hell—about
the
management of their unrest over many things. So —because of his position.
to any great depth between the

Pacific
War, and the threat of a Spring
offensive by the Germans against
the

and

Middle

tem

In

Eastr

Hitler may

westward,

possibly

realization

the British Isles.

effect from
other

against

even

Reports to this

London may,

hand,

screen

a

on the
British in¬

tention to invade Norway or some

other Continental
It

point.

1

made known in Lon¬

was

credited

were

.

the last day or two,

however, the
began to spread that
be preparing to move

don, Tuesday,

strongholds.

German

were

that the giant
battleship
Tirpitz

last

had

observed

been

earlier

week

In

;

few

warning was

a

*

The

merce.

great

made

efforts-^ to

regain Kharkov, the great in¬
dustrial and military center

com-!

closed

Germans

,

.

the

war, about the boondoggling,
about countless other things—and

what?

' Xv

This is not written

as

indict¬

an

Merge Farm Marketing
being raised through ment of the legislative body, but
Details
of organization
Congress. The legislative body is instead, the situation that has
of the
still
apparently the medium of come to pass in this country.
Agricultural Marketing Adminis¬
The members of Congress are tration, bringing together major
expression of the American peo¬
ple—of their dissatisfactions, their nervous. They feel, by and large, marketing services and programs
that if an election were held to¬ into a single agency, were an¬
disapprovals, their disgusts.
,
Tne result has been that Con¬ morrow, it would be just too bad nounced on Mar. 14 by Adminis¬
the
"ins"
gress has been acting up for the for
regardless
of trator Roy F. Hendrickson, with
whether they are Democrats or the
past several weeks.
approval
of
Secretary
of
But now, having accepted the Republicans.
They
have
been Agriculture Wickard.
From the
announcement
we
proposition that although Con¬ hearing from home.
They took
quote:
gress has lost its power, it still an awful drubbing in the esteem
Establishment of the Agricul¬

this

conceded.
:
the fighting of the last
days, however, the Rus-

sians

:

given that the ship might be
at sea on a raid against

Few of the bastions
Russians, the

retaken by the

British observers

a

Narvik,

near

and

Norway,

1167

ments of the German

focused recently upon the

Russia

FINANCIAL CHRONICLE

THE COMMERCIAL &

Volume'155 r Number 4056

hell

is

•

ing

which

'

might mean prepara¬
an invasion attempt,

attack

an

against Iceland.

week-end

spokesmen

Swedish

but

this

threat

of

to

be

*

be¬

the

by

invasion

interrupt the supply line
ports of Russia is
another possibility suggested by
the latest incidents.
The war at
become

to

the

more

will come to the aid
hard-pressed Hitler by attacking
in the East.; Both Berlin
and Tokio have been completely
silent on this matter in the last

motor

ten

torpedo boats was announced by
both sides, Monday, with the Brit¬
ish claiming the sinking of two
German
ships, while admitting
the 4qss of a destroyer,
Berlin
said

a

.

destroyer

probably

.

increasingly

rare

of

speeches in

Berlin, last Sunday, in observance
of
the- German
memorial day.

professed
indifference
to
America, while indicating an in¬

He

fighting 1 any

of

tention

attempt

impinge upon Europe.; Hitler
that Russia will be de¬
feated next Summer.
He hailed
the "heroic Japanese" and gave
Mussolini his customary pat on
to

declared

the

of
to

Under-Secretary

back.

Welles tried
speech an admission

Sumner

State

make of the

by Hitler of his own impending
downfall, but it remains a mys¬
tery why

Mr. Welles dignified
in this fashion.

Hitler address

the
•

Russian Mud

General

Winter

appears

to be

reports this week in¬

temperatures
along almost the entire line from
Leningrad to the Crimea.
But
Spring weather soon will set in
and the frozen ground then will
turn into mud.
With greatly pre¬
ponderant cavalry strength, Rus¬
sian forces possibly will be able
under such conditions to augment
their Winter gains.
The conflict
seems destined,
in any event, to
continue next Summer and per¬
haps indefinitely.
,
With the turn of the season at
hand, summaries of - the RussoGerman war were in order, and
they appeared in great numbers.
In the nine months of these great
battles,
German forces at , first
drove deep into Russian territory,
but finally were forced backward
by frost and the Russians.
In an
address Jast Sunday, Hitler em¬
phasized the extreme cold of the
Winter now ending, but he made
no mention of the Russian' ability
to continue fighting in the frigid
dicated

sub-zero

,

area.

,

";jx

East

occasional blows

struck
this week in the active fighting
that is almost certain to develop
soon
for control of the Middle
East.
In the Western Desert re¬
counter-blows

were

gion of Italian Libya, General Erwin Rommel and his German and
Italian mechanized divisions

has

was complained
eliminated.
The

been

McNutt

velt's

laughing

are

as

will

on

now

come from
levelled against

McNutt.

But the activities, the
boondoggling, of which Congress
complains, will go on—under new

management.
This

unmerci¬

whether

stated

find

,

by the Axis as the key

to the

move

the

German

against
of

lands

and

the Suez and
southern Asia.

by

both

drive
to

the

be

pressure

A

German

through
ruled

Turkey
out,

is

the

moves

from

Libya

not

however,

alternatives

while

into

Several
an

would

for them from funds
to

This has

him.

fairly




all

price-fixing idea

ago

there

was

appropriation

pending before
Appropriations Com¬

House

the

for

a

—

But

there

any¬

is

indication

no

the

seriously intends to
thing about it.

do

Baruch

finance

and

so-called

housing

the

that

out

members

House

not

be

of

The

of

the

AMA

general
will

the

name

that

this

was

a

formerly

SMA, and
Kitchen, formerly Chief of
AMS; Assistant Adminis¬
trators Ralph W. Olmstead, for¬
merly Assistant to the Adminis¬
trator of Agricultural Market¬
ing, and F. V. Waugh, formerly
Assistant Administrator of Agri¬
cultural Marketing.
the

the

The

the
in

President's

farm

our

than $98 bil¬
ceiling bill were

order

agencies

are

the

They

project for Negroes.
refused to appropriate the

money. ;

The

Charles

F.

New Dealers got
("Chuck")
Palmer,
then the coordinator of housing,
to

write

the

committee

a

coming

issue of Mar. 5, page 955.

following

information

around

to

Mar.

Roosevelt

12,

tional

Bank

of

■

/

-

STOCK INCREASED
Amount

of Increase

First

Blue

Na¬

Ridge

Blue Ridge Summit,

'

From $30,000 to $50,000.

Pa.

was

impatient
in
answering
questions on the subject, said only

1942—The

Summit,

.

conference

VOLUNTARY

' -T,
X

$20,000

LIQUIDATIONS

quite

Amount
Mar.

9,

1942—The

tional Bank,

letter

that the overall bill was being
saying it w^s not intended to lo¬ "discussed." Reporters, searching
cate
Negroes
in
this
project. around in the various departments
Whereupon, the money was grant¬ can't find out who is discussing it.

is

from the office of the Comptroller
of
the
Currency, Treasury De¬

Baruch's original idea. She talked
with
Baruch
recently.
At
his
press

merging
reported

was

National Banks
The

The difference between

now

W.

C. W

have

figures is the difference
between inflation, they claim.

E.

Associate

Administrator of the

some

two

was

adminis¬
include:

group

Gaumnitz,

more

lion if the overall
in effect.

the

previously
-Surplus

the

■

together with
Surplus Commodi¬

Federal

trative

any¬

fig¬
$160
billion that has been appropriated
or authorized forihe
war, the bill
ured

by

Associate Administrators

along with the leading

minded

Senate

functions
out

ties Corporation as an agency of
the Department.

over

that

and

Administration,

over

profits, over wages,
agricultural
commodities.

,-h

Marketing Administration, the
Agricultural Marketing Service,
and the Commodity Exchange

ceiling

over

would

weeks

Onida

Na¬

Onida, S. Dak.-

$45 000

Common stdck

Preferred

25,000

stock

(RFC)

20,000

_

'

Effective
on

Sept.

6.

at close of

business

1941.

-

Liquidating Agent: Arthur J,

ed, Negroes were placed in the
In the meantime, Mrs. Roose¬ Owens, Onida, S. Dak.
East,
and
from
the
Succeeded
project and serious race disturb¬ velt has given comfort to the ad¬
by:
The
Onida
Ukraine into the Caucasus.
Bank, Onida, S. Dak.
ances have resulted.
It would be vocates of the overall
ceiling by Mar. 12, 1942—Standard Na¬
The
British
Mediterranean interesting for you to hear the
tional
Bank
of
New
writing in her column that she is
York,
squadron, based on Alexandria, New Dealers laugh about how still
New York, N. Y.
520.000
convinced
that
everybody
Common stock
made it plain on Tuesday that all
250.000
they put this one over.
should be drafted for war service.
Preferred stock (local)
270,000
is in readiness to counter any Axis
Mr.
Roosevelt
had
the
idea Instead of giving any comfort to
Effective Feb. 17, 1942.
move
eastward.
A co-ordinated
Liquidating Agents: Richard
sometime ago to put up another those who have been following
air and sea attack on the Italian
M. Lederer and Stanley Haskell,
information bureau, whereby bus¬ Mrs. Roosevelt for years, this is
care of the liquidating bank.
island of Rhodes, off Turkey, was
iness men coming to town would annoying rather than considered
Absorbed by:
Manufacturers
reported on that day, and the in¬ know
exactly where to go.
His as being in support of the over¬ Trust Co., New York, N. Y,
stallations
were
reported; badly idea was to put up a structure all ceiling plan.
damaged
by the bombing and in the
triangular park on Penn¬
Mrs. Roosevelt began harping
Get WPB Steel Posts
shelling, and the fires which fol¬
sylvania Avenue just across from upon what she called "universal
lowed.
London., affected
to- be¬
C. E. Adams, Chief of the Iron
the WillRrd Hotel., The idea is to service" back in 1939, and at the
lieve, indeed, that this attack dis¬ have uniformed
young women to time one of her stooge columnists and Steel Branch of the War Pro¬
rupted the Axis plans for an at¬ tell the business man just where
sought to explain that she meant duction
Board, announces that
tack on the Middle East.
:
'
to go. It so happens that the War that nobody should receive more
L. S. Simons, former Secretary of
Production Board has reception¬ than the men in the
military re¬
the Steel Export Association of
ists on every flood to tell the*bus- ceived.
Her point, as I under¬
iness man just what he
wants, stand it and she develops it quite New York, has been, appointed
(Continued from First Pa ae)
every other agency in town has cagily, is that "privates in indus¬ his executive assistant.
He also
which is not the attribute of for¬ them too. Instead of having peo¬ try"
should
get
$21
a
month announced that H.
J.
French,
eign bureaucrats. It gets back to ple in these jobs who can really along with the equivalent of food
member of the technical staff of
the proposition that
tell a business man where to go, and
housing, the "majors in in¬
Americans
can
do
anything
better
than the idea was to set up another dustry" should receive the same the International Nickel Co., has
Near

-

___

from

Washington ;

agency.
London, meanwhile,
a foreigners.
But in
this state of thinking
reasonable account of the
Well,
Congress
didn't
think
Winter
campaign in Russia has Congress comes through and jus¬ much of it when it was broached
tifies
itself, just as many of the for
been
made
available
by the
an
appropriation
for
this
United Press.
The accomplish¬ other governmental agencies, project.
It
turned
it - down.

From

recently of Barney Baruch's

difference

pork barrel

intention of

utmost

sides.

recent

happened.

from

relinquishing their neutrality,
despite

ties

on

Marketing Adminis^.
consolidates the activi¬

carried

.

It

Order

new

tration

as the
Mrs. Roosevelt was apparently partment:
COMMON CAPITAL
"Sojourner-Truth Project." Memr responsible for the wave of spec¬
bers of the committee suspected; ulation that the Administration

Italian

authorities have

But Turkish

The

recrudesence

a

Executive

23.

Feb.

,

has been

Department
by the

project in Detroit known

which looms beyond any suc¬

cessful

money

mittee

forces

Japanese

with

tion

no

a

Mr.. Roosevelt

blank-checked

the

Middle East and to that junc¬

in

Congress refused to ap¬
money for these activi¬

that

ties,

..

,

dential

was
quite
Congressman
asked him about parasites in the
Government.
He
replied there
were
as
many parasites in Con¬
gress as anywhere else. The par¬
ticular Congressman exploded, but

There

the

announced

made effective by a Presi¬

was

A

what could he do.

of

was

Secretary on Dec. 13, 194L

be¬
new

center"

contemptuous.

one

writer

propriate

Germans bombed Malta

Mellett, appearing
Congress to defend the

"information

ganization

the

may

be

reported by the British, Tuesday,
as probing their lines.
British at¬
tacks continued on the supply line

fully.
■;
i'
Turkey possibly.is regarded

Lowell

fore

one

which

,'V ,;V.\

New

about

aspirant for Roose¬
and they figure that

grief which

any

obvi¬

Tripolitania, and the

about

-K'''

an

job

column that it made

from Italy to

Marketing Administration
of the steps
taken to
carry
out the war-time reor¬

is

Hearing from home, realizing
finally, the position they have
fact
that
the
critical
activities come to be
in, the members of
have now been taken away from
Congress are kicking up.
But
the OCD and placed under Paul what
can
they do?
They have
McNutt. They think it is quite a frittered
away the power they had
good joke because they look upon —the power of the purse.
Dealers

ously await a signal for an offen¬
sive. Strong enemy columns were

not indicated any

releasing his grip upon the Rus¬
sian front slowly and reluctantly,
for Moscow

xx>,,■

Tentative and
and

was

Chancellor Hitler made one

days.
Middle

sunk, and that several British tor¬
pedo
boats also were heavily
damaged. •
:'1i\ X /'/'
■/•/>
his

-

of ity which

Russia

British

German

and

destroyers

reflecting
the
com¬
plaints of the people, began rais¬
ing hell on the frivolities in the

Japan

,

between

We will start with the fact thai

..

damaged battleships
and Gneissenau are
undergoing repairs
A

battle

Channel

crats.

V

.

Scharnhorst
said to be

"

>

it

deadly, notwithstanding the heavy
and continuous British hombing
of Kiel and other German bases,
where

the bureaucrats.

on

usual extraordinary
counterclaims. ,

tural

people) lets see what effect the resented thing that ever appeared
expressed complaints through in American newspapers.
It was
that sounding
agency
have had right up the alley of the bureau¬

permitted at the front in Russia,
is necessary to await the out¬
Office of Civilian Defense.
To
come of the latest battles, without
too much elation or pessimism as date, this energy has resulted in
La Guardia and Mrs.
Roosevelt
the Russian and German reports
are scanned, in turn.
Also of vital relinquishing their posts with this
interest
is
the
possibility that agency, but not one single activ¬

northern

promises

>

clouded

are

a- purpose
in being the of the people on their so-called
sounding board of the American "pension grab," the most misrep¬

serves

Since foreign observers are not Congress,

ing to

sea

and north- :
while pre-r

claims and

be try¬
'

to

results

the

by

That the Germans may

Moscow,

the

and

-

Nations.

United

of

paring
a
tremendous •: on¬
slaught in the Ukraine. That
movement
now
has
begun,

to the

due

Winter strategy, it is

clear, was to hammer at

:

"

lieved

Russian

German lines west

in- Norway,

forces

German

to

west

of

massing

a

appear

now

reported over the

Stockholm
last

Basin, and they

have moved into
the suburbs of that town. The

for

tion
or

authorities,

British

to

of the Donets

ports, accord¬

Norwegian

all

,

.

*

...

as
so

the majors in the military and
forth.
Presumably she would

have

large

a

stituted
vates.'

the

It

is

say

as

majors
a

fact

to who con¬
and the pri¬

that

the

New

been

appointed

senior

technical

consultant in charge of the

lurgical

and

Metal¬

Specifications * Sec¬

tion of the branch.

1168

THE COMMERCIAL

& FINANCIAL CHRONICLE

National Bank for
of

cess

nounced

the

Board

of the devote his time to his interests in

regular meeting

of

tional

Directors

of

the

Na¬

Marquette. ■-i;•/

12

a

Flint

to

Flint

Detroit

by

"Free

Allocation System For

Study

•;

ac¬

in

Press"

of

The

United States is sending a
technical mission to India to ex¬

plore

the

possibilities

of

Amer¬

Bank of New York,
ican
assistance in developing a
The
First
National
Bank
&
17, Robert E. Pearce
stitution embracing banks in Bat¬ supply base for the United Na¬
Trust
Co.
of
Sterling Bunnell were ap¬
Freeport, L. I., as¬
tle Creek, Grand
Rapids, Lansing, tions, it was announced on Mar. 6
pointed
Vice-Presidents.
Both sumed on March 7 the deposit
Head¬
Marshall, Port Huron and Sagi¬ by the State Department.
are veterans of European National liabilities of the Citizens National
naw.
It is likewise stated that ing
the mission will be Louis
City branch office service and Bank of the same place. Notice
completion of the transaction is Johnson, former Assistant Secre¬
were overseas
during the present of this proposed merger appeared
not expected to be made before tary of War, it was disclosed on
war.
Mr. Pearce supervised the in these columns March 5, page
The other members who
April 30, deadline for an offer of Mar. 9.
evacuation of the National City 968.1 The transaction, it is stated,
will
assist
in
solving
specific
staff from Paris to Le Puy en was made possible by the action $50 a share, made by the pur¬
chasers to 825 stockholders of the technical problems are: Henry F.
Velay, France, after the outbreak of the Federal Deposit Insurance
Flint bank. Stock value was listed Grady,
former Assistant Secre¬
of the war.
He was manager of Corporation
in
advancing
ap¬
at $35 at the time of its
organiza¬ tary of State in charge of trade
the Antwerp National City branch proximately $350,000 upon assets
tion in 1934. From the Associated relations; Arthur W. Harrington,
frOm 1920 to 1922, manager of the of the Citizens National Bank, p ;
President of the Society of Auto¬
Press we also quote:
Brussels branch from 1923 to 1930,
motive Engineers; Harry E.
Stockholders
of
the
Flint
Beyand from that time until he re¬
Herman H. Griswold, President
7
bank were advised that a ma- ster,
President of
the Beyster
turned to the States last year he of the Elmira Bank & Trust Co.,
jority interest had accepted the Engineering ,Co., and Dirk Dekwas
manager
of
the: Champs Elmira, N. Y., died recently in
proposal, which was received ker. Director of Personnel < and
Mr. Griswold, who was
Elysees office in Paris.
Mr. Bun¬ Buffalo.
from
interests identified with Training
of
the
Illinois
Steel
nell was in the Berlin office at 69 years old, was a former Presi;
the Michigan National. The lat¬ Corp.,
;

held

Mar.

and C.

.

the outbreak of the
ered

in

the

and

war

ident

cov¬

City activities
capitals of
Central of

various

Europe.

Both

are

in head office.

of

the

New

York

the

founders

of

the

A native of

standing shares.

Leroy, Pa., Mr. Gris¬

v

wold had been President of banks

Hairy
the

E.

Board

Chairman

Ward,

in

of

of Irving Trust Co.

ed

New

York, announced the follow¬
ing promotions and appointments
made by the company's Executive
Committee
March

Assistant

Assistant
tave A.

Treasurer

From

Assistant

W.

the

B.

elected

M.

Watts

has

Vice-President

a

to

Coleman,

pointed
Co.

Hanover

of New

located

tive

ap¬

York.

the

at

Bank

42nd

Yoepp is

St.

office

Philadelphia,

been

Bank

&

Trust Co. of New York announced
N

March

on

ders

14

been

sistant

that

Henry S. San¬
Benjamin B.
Gruber

and

have

advanced

from

Vice-Presidents

to

dia's

industrial resources, due to
military situation in south¬
eastern Asia,
the State Depart¬
ment expressed hope that "this
step in American-Indian collab¬
oration may serve to make an

been
of

effective contribution

Jones

and

of the United

war

against aggression,"

has

Cashier.

>

Schwartz

elected

Denton

President

of

has
the

Trustee and

a

was

been

York

bank

head

and

(Mich.)

Metro¬

of heart disease

on

69

who

man,

West

the

years
was

a

old.

Mr.

native

Kauf¬

of

Mar¬

the

United

World

leave

to

States

War

serve

he

at the time of his death

of

the

Later

& Trust Co. of

he

the

Phenix

on

Bank

year

with

the

statement

head

became

of

this

At

Otte's

commander of the
to

take

the

in

career

the

banking

Swiss Bank
The

Swiss

of

Feb.

14

that

including the

joined

the

Union

National

Otte in

1904

helped organize the

becoming

Cashier.

He

last

Corporation

the

under

accounts

show

date

for

net

profits
forward from

carry

of Swiss Frs. 9,655,966,
Frs. 9,157,189 for

year

Swiss

against

The

1940.

Corp. Profits

advices

1941

year

corporation also states:

The total assets at the end of
1941

amounted

1906.

He

and

later organized and became Pres¬

as¬

in

the

Mr.

and

of

one

organizers of the Na¬
City Bank of Chicago in

1907 and when this bank merged
the National Bank of the

with

merged Republic

Kaufman

Phenix

Trust

with

Co.,

the

creating

Phenix

to

Swiss

Frs.

Chicago

ip

1924, he

nation of Mr.

With the termi¬

became

Executive

institution.

of

Committee

of

-

in

time

1931

to

Otte

left




.year,

is

hoped to

Frs.

will

3,255,-

965.81, against Swiss Frs. 2,757,189.31

last year.

become

1941 Cotton Loans

Vice-

1933

to

head the

Moline

held ,at

of his death.

Bank

The Department of
on

Mar.

12

Agriculture
that

Com¬

Credit

Corporation had
made 1,109,398 loans on
2,137,534
bales of 1941 crop cotton

Mar.

7, 1942.

loans

were

through
A total of 170,031
repaid
on
359,357

Flint, Mich., has bales, leaving outstanding 939,367
fa been., purchased bythe Michigan loans on 1,778,177 bales.„i,«,
of

such

mission
its

be

mission

shortly.

the

The

the

announce

of

personnel

mission

Government

of

the United States and the Gov¬
ernment of India

that

■

this

United

earnestly hope

collaboration

to make

tribution

may

effective

an

the

to

authority of the Di¬
of
Industry
Operations.
Pulp imported and reaching this
country
after
noon,
EWT,- on
May 1, will be held until released
by the Director.
The

Director

has

authorized

administration of the order by the

Pulp and Paper Branch.

7

General Preference Order M-93,
which sets up the allocation sys¬

tem, will supplant General Pref¬
erence
Order M-52, which pro¬
vided for the allocation of certain

types of pulp; among
companies.
-

The

specified
:
::X

:,

order affects all grades

new

of pulp and all

companies, and is
supplies and
available
pulp between competing war and
civilian requirements.1.
•
The order requires pulp con¬
sumers, beginning next month, to
designed to

conserve

" equitably

distribute*

with

file

producers

on

or

before

Nations

in

the

the
war

;

.

;

reports

and

of

Canada

the

United
Mar.

on

4

signed an income-tax convention
designed to eliminate double tax¬
ation
to

of

individual

incomes

the

to

stockholders

Signing

for

in

the

the

United

States was Sumner
Welles, Act¬
ing
Secretary of State,
while
Leighton
McCarthy,
Canadian

Minister, signed for his country.
following concerning the pact

The
was

reported by Associated Press

advices from

Washington.

Under the

convention, which

ratifications

changed,

.

.

have

Canadians

.

as

soon

been

living

ex¬

in

the United States must pay both
the American and Canadian in¬

tax, but

may

submitted

15th

The

on

and

or

before

of each month.

WPB

will

r

review

formation: submitted

all

each

then

will

direct

may

be made by

ducers

and

be

may

from

made

what

what

also

in¬

month

deliveries

pulp
pro¬

deliveries

inventories

held by any person.

Beginning May 1, producers are
required to withhold for special
distribution

whatever portion of
monthly production may be

their

decided from time to time by the
Director of Industry Operations.
Stocks

arrive

which

country after noon,

in

this

May 1, most

of which will come, as at

present,
Canada; cannot be released
without the Director's approval.
from

Persons who

place orders for irm-

ports due to arrive after that time
must
notify the
Director
and
must request the foreign producer

pulp in accordance
by the

directions laid down

Director.
All

'

prohibitions concerning de¬
not only to deliv¬

liveries apply
eries

from

one

individual

to

an¬

other but also to deliveries within
branches of individual

companies.

Swope Quits Treasury

regulate the taxation of divi¬

country

on

be

and

dends paid by corporations in one

other.

:

schedules, and these reports also
must

with

Representatives

before

give the WPB
their advance shipping

to deliver the

U. S. And Canada Sign
Income Tax Agreement

on or

Producers must

con¬

of

success

against aggression.

will

the

Controlling interest in the Na-

He resigned from tional

that, post «the ioUowing

forward

Swiss

a

to

the

come

Mr.

.

of

the

that

their Canadian tax

the

Chatham

Chairman

decided

year.
The
amount
to

carry

it

institutions.

bank, which position he

Kaufman's services

President

he

which

of 4%

such

invited

as

reported

Co.,

dividend

receive

becomes effective

modity

Trust

a

in

The Government

became President of the combined
bank

National

of

27

assistance

be proposed as for the previous

post in

and

It

r

the

merged in 1931 with the Manufac¬

the

y

possibilities

possible.

as

/

Navy would be
against the

Bank

in

announces

he

Bank Union Stock Yards State Bank in

1910 to

been

con¬

offensive

country's enemies.

turers Trust Co.

new

press

11, Admiral
King indicated that his policy as

the

merged it with the tional

Chatham

as

out.

examine

should proceed to India as soon

March

on

to

has

serve

pointed

dis¬

guests during the mission's stay
in India.
Accordingly, it has

Britain," the Navy

Secretary Knox's

ference

Chairman of the Central Republic
Bank and Trust Co., and left this

then

also

the

of

technical

a

could

on

American

and

of

Ghormley, who is at
present senior United States naval

of

which

the

to

agree

India

report

iness

States

duties

would

to

inquired

Government

of India has expressed its read¬

L.

business dated back to 1887 when

Bank, to form the Chat¬

Metropolitan

Phenix

the

Feb.

1925

Bank

United

the

development.

Operations, thus

and

Chatham

the

Chief,
absorb

Naval

was

since

of
;

King, Com¬

ofifcer in Great

March 9 at his home in Moline.

Mr.

ham and Phenix Bank.
In

of

J.

ident of the Lakeview Trust

National

following

Ernest

Presidency of the Chat¬ Savings Bank of Chicago. He

post

and

that

1,370,094,424, against Swiss Frs.
1,366,071,396.
At the general
meeting which is to be held on

that

to New York in

sume

of

en¬

Hugo E. Otte, President of the
(111.) National Bank, died

Marquette, having Chicago,

held
came

ham

relieved

accordingly,

mission

States

Pres¬

was

First National

been

ob¬

quette, began his banking career Bank of Chicago.
After 17 years
in
his
father's bank, the Mar¬ with this bank and its
successor,
quette County Savings Bank, and the First National of
Chicago, Mr.
ident

specific

rector

the fifth day of each month their
orders for the following month on

.

.

Government of tne United

patch

"Admiral Stark will go to Lon¬
don
as
relief
of
Vice-Admiral

died Moline
a

has

1939,

Robert

States Shipping Board
Emergency Fleet Corp., as as¬
sistant manager of the housing
and ; transportation
division.

prominent

hospital in West Palm Beach, Fla.
was

when

division, remaining in Govern¬
ment service until August, 1919.

March 10 at

by

the 15th day of each month.

India

Stark, Chief
Operations since Aug. 2,

of Naval

United

formerly

banker,

-

reports must be filed

States,

succes¬

Kaufman, former New

Marquette

He

was

merged with the

was

the

tained

Executive Vice-President.

Louis G.

y:--:

'■

■

Title & Trust Co..

When

politan Savings Bank, New York
City, succeeding Francis H. Moffet, who retired,
Mr. Denton is
also

11:

He

institution

Land

tered
K.

field.

End Trust

Assistant
■

Willard

May 1;:.:;

Under the system, no deliveries
of wood pulp may be made except

the Near East and the Far East.

whether

President, leaving in Septemconsolidating the two duties under
ber, 1921, to become President
one
officer, the announcement
of the West End Trust Co.
said. .'>> 7 7;:.
v--"
Later he took the helm of the

7

Sil¬

'

.

effective

forces of the United Nations in
The

Admiral Harold R.

Chief

new

and E. M,
appointed

been

the

Admiral

ver have been advanced from As¬
sistant Cashiers to Assistant Vice-

Presidents;

suc¬

Nations in the

the

Smith began his

nancial

Vice-

Maxwell

the

to

cess

Admiral King Placed
In Navy High Command

sively manager of the building
mander in
operation department, real es¬
tate officer, director and Vice- Fleet, will

As¬

Presidents; Philip L. Glass, Mau¬
rice L. Krohn, Jacob Kabak, E.
Scarritt

emphasizing the
development of In¬

need for swift

post to be designated Commander,
banking United States Naval Forces
Oper¬
career as an office boy for the
ating in European Waters, Secre¬
Land
Title & Trust
Co., and tary of the
Navy Frank Knox an¬
enjoyed a rapid rise in the fi¬ nounced on March
10.
Mr.

National

Smith

with

Philadelphia "In¬

quirer" of March

Public

Mr.

connected

taken from the

of

the company.

The

placed the entire wood pulp in¬
dustry under an allocation system,

of

Trust banking business there for almost
half a century. The following is

&

Mr.

of

had

Assistant Treasurer of

an

Central

been

impor¬

an

on

Assistant Secretary: Mor¬
S. MacDonald, Douglas E. the Board of the Land Title Bank
McNamara and Louis L. Sea- and Trust Co., Philadelphia, died
man.
'
on
March
; •,....• •■/
10
at
Miami Beach,
Fla.
He was 62 years old.
A na¬

Arthur H. Yoepp has

pulp, which has

tant part in the war
program, the
War Production Board on Mar. 13

,

To

'

statement

a

the

:

Bohn, Detroit in¬
dustrialist, has a financial in¬
terest in the Michigan National.

Lawson

In

gan

■i

wood

Stamford Trust
The
Department's
statement
First National Bank of St. Louis.
forms
to -be
furnished
Stamford, Conn.,
by the
Mr. Watts has for the past five follows:
March 13. Mr. Richards,
,r
VM'VYPT
The
military
situation V in WPBV
who was 49 years of age, had years been Deputy Administrator
In addition, each consumer is
southeastern
Asia
of the Federal Housing Adminis¬
emphasizes
been
with
the
Stamford
Trust
the need to develop fully, and required to file with the WPB a
tration, in charge of activities in
Company for 25 years.
report containing full information
as
nine Southwestern States.
rapidly as feasible, the in¬
He is
on
consumption and inventories
dustrial resources of India, as a
expected
to
assume
his
bank
of
James W. Smith, Chairman of
pulp on a monthly basis. These
duties in May.
supply
base
for
the
armed
died

Gus-

Auditor

William

Assistant

Richards,

of

Company

to

Jaeger, H. Miller LawWalter G. Vogel.
]

and

C.

Charles

v,j.

■■

The chain is headed by Howard
Stoddard».77--v ; -vv-

banking in Elmira since

Horace

on

Secretary

Vice-President:

Auditor:
i

meeting

with

•

12.

From

der

its

at

Pennsylvania, New Jersey and

New York and had been connect¬

of

said to have

was

deposited $1,000,000 to cover the
full purchase of the
20,000 out-

Associa¬

stationed tion's Bankers Retirement System.

now

'v

institution

one

was

/ Seeking to conserve supplies
direct
the
distribution
of

and

.

State

ter

Bankers Association and

National

>

i,.;;;7.^Wood Pulp Is Ordered

ac¬

Press

13, which states that the
Michigan National Bank is an in¬

City

U.S. Mission To

direc¬

appearing

V. March

-•

was

institution,

Associated

from

counts

the

an¬

March

the

cording
At

ex¬

it

on

of

tors

price in

$1,000,000,

Thursday, March 19, 1942

deduct from
the amount

Gerara

former

Swope,

of the

dent

General

Presi¬

Electric Co.,

has resigned as

of

retary

in

thau

available

Assistant to Sec¬
Treasury Morgenorder that
he may be
the

as

a

witness in the anti¬

trust suit instituted some time ago

against the company by the De¬
partment of Justice.
Mr. Swope
had been appointed to the Treas¬
ury

post on Jan. 24, as was indi¬
our issue of Feb. 5, page

cated in

568.

In

accepting

the

resigna¬

effective Mar. 7, Secretary
Morgenthau said he did so "with
a
good deal of regret" and ex¬
pressed the hope that Mr. Swope
would let him know when he is
tion,

paid to the United States.

free to

Canadians crossing the border
daily to work in the United
States are taxable in both coun¬

Swope served as President
of the General Electric Co. from

tries,

Treasury Department, Mr

with

the

of deduction.

ing

daily

are

taxable

credit

on

to

same

privilege

Americans

work

there,

cross¬

serve

again.

Mr.

1922 to 1940.

Prior to joining the

Swope

resigned as Chairman of the New
York City Housing Authority, a

in Canada
but receive post he had held over two years,

their American income

in order to devote his full time to

.tax, for any..amount pai<i .there... Treasury

matters.

.

v