The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
'*!>•
A-
i
i\-'utt«-v.
SO*
1344
MAR 3
Final
Edition
OVER 100
ESTABLISHED
In 3 Sections
YEARS
-
Section 1
I and.
ommatcial
Reg.
Volume 159
New
Number 4260
U.
S.
Pat.
Office
Price 60 Cents
York, N. Y., Thursday, March 2, 1944
Congressman Buffett Willkie Contends Inadequate Tax 1 Post-War Program
Says Security Busi¬
Bill Largely Administration's Fault Of Corporations And
ness Must Act Now
EUSTACE
By
The
investment
fraternity
should act now in formulating
plans and making suggestions to
Congress for any needed revision
of the Securi¬
ties Act, in the
opinion
Hon.
of
Howard
Buffett,
Rep¬
resentative
SELIGMAN*
Regards Government's Extravagances As Viewed By Mr.
Seligman Proposes A Four-Point Program Of Tax
Many As Affording Additional Funds For
Revision, Comprising The Elimination Of Corporation
Further Profligate Spending
Taxes In Excess Of 5%; The Adoption Of A New
In a statement issued.on Feb. 27, Wendell L. Willkie, commenting
Method Of Taxing Capital Gains; The Reduction Of In¬
on President Roosevelt's veto of the tax bill, and the overriding of the
veto by Congress on Feb. 25, stated that "the fact that today we have dividual Taxes On Large Incomes; And Special Reduc¬
inadequate tax bill is not primarily the fault of Congress.
It is tion Of The Tax Rate On Income From Risky Enterprises
largely the fault of the present national Administration, which
the last years
Nebraska,
has
that
money
views
were
For Taxation
Stockholders
an
in
Congress from
whose
Copy
a
While the
real
has not yet been won, and while there is a very
war
danger of
weakening of the
a
effort through diverting
war
icans
attention
uur
the
oi
much
too
Amer¬
many
con¬
over
extravagantly and wantonly wasted the people's
so
tu
payment of
post-war
problems,
dressed to the
ad ditio nal
nevertheless
Editor
taxes
tained
in
letter
a
ad¬
the
of
merely
viding
"Chronicle,"
under
Feb.:
date
11.
of
for
Howard
Buffett
<
Rule
Would
Close Capital Markets To Small
Business," which appeared in these
his
Feb. 3, and expressed
willingness to aid in bringing
the
to
attention of
Congress
proposals which would
the
any
facilitate
financing of small enterprise
said,
must
come
securities business for
some
16
or
myself, I have an inti¬
knowledge of its operating
years
mate
'
for
d d it i
nal
a
for
o
taxes
Wendell Willkie
now
y
problems." The financing of small
business, Representative Buffett
said, represents one of the most
important post-war problems con¬
fronting the nation.
it must
be
They:
home, as
best they can, the sacrifices being
made by our fighting men who
are risking and giving their lives.
are
"The
match
to
eager
additional
at
taxed,
we
has
war
income
and, taxed
this
need
to pay
we
created
heavily.
additional
for the war—to
war as
revenue
pay
for
as
possible while
(Continued
on page
898)
we
that
say
have
infor¬
from
this
at
appeared
.
the
in
-
it
The program
for a post-war
nec¬
policy of tax¬
believe
I
fixing for food
surely and
perhaps for
Feb. 17 and Feb. 24,
the
cover
instance.
clothes
page
ties.
others
be
will
published in
For index
see
page
912.
de¬
food,
and
medical
sup¬
plies
will be
greater for a
period of from
of comments and
subsequent issues.—Editor.
The
clothes
an¬
other group
cessa¬
mand for
each
We give now
ix
s
F.
H.
LaGuardia
to
months
it
is
(Continued
on
and
page 896)
ANHATTAN
VICTORY
Bay ar Bonds
W
Hirsch, Lilienthal & Co.
Members New York Stock Exchange
and
other
Exchanges
R. H. Johnson & Co.
London- Geneva
HAnovcr
Rep.
St., New York 4, N. Y.
2-0(500
Chicago
Teletype NY 1-210
Cleveland
INVESTMENT
64 Wail
Troy
w/LONG and-COMPANY
^—INCORPORATED
PHILADELPHIA
Buffalo
Syracuse
Williamsport
Dallas
will
at
the
Midwinter
in
apnear
an
Society.
ner
published by the
Mr. Seligman is a part¬
in the New York law firm of
Sullivan, and Cromwell.
(Continued
on
page
Co.
THE
CHASE
York Curb
30 Broad St.
Tel. DIgby 4-7800
facilities
Exchange
New York 4
Tele. NY 1-733
Purolator
.
45 Nassau Street
Tel. REctor 2-3600
Philadelphia
Dealers
Member Federal Deposit Insurance
Corporation
New
England
Public Service Co.
ALL ISSUES
i-
Analysis
International
Ass'n
New York 5
Enterprise 6015
Members New York Stock Exchange
120
Broadway, New York 5, N. Y,
Telephone: REctor 2-7400
Bell
Teletype NY 1-635
Members
New
York
Security Dealers Assn.
52 WILLIAM ST., N. Y. S
Bell Teletype NY
New York
HAnover 2-6980
1-395
Montreal
Toronto
upon
Request
•
HART SMITH & CO.
REYNOLDS & CO.
Teletype N. Y. 1-576
Telephone:
•
Detrola Corp.
Kobbe, Gearhart & Co♦
Security
BANK
Members New York Stock Exchange
Members New
Welder Co.
Y.
908)
correspondent
Hardy
Federal Machine and
N,
of
PROCEEDINGS
Products, Inc.
INCORPORATED
Meeting
early issue
service with Chase
LOS ANGELES
for brokers and dealers in
Members
TELEPHONE-RECTOR 2-6300
read
and Dealers
634 SO, SPRING ST.
Securities
14 WALL ST., NEW YORK 5.N.Y.
pendence Hall, Philadelphia, Pa.,
19, 1944. All of the papers
Feb.
Broaden your customer
JERSEY CITY
Trading Markets, always
MEMBERS NEW YORK STOCK EXCHANGE
paper
OF THE CITY OF NEW YORK
15 EXCHANGE PL
Albany
Pittsburgh
this
Brokerage
Wholesale'VisM&ufors
BROKERS
Bull, holden 8e C2
in
*A paper read before the Amer¬
ican Philosophical Society, Inde¬
,
Service
PROSPECTUS|ON REQUEST
Over "The' Counter
BOND
advocated
for Banks, Brokers
Street, New York 5
BOSTON
Actual
.
be
^-nNc./
HUGH
SECURITIES
Bond
BOND FUND
Established 1927
25 Broad
holders which
will
NATIONAL
in
■
and
stock¬
war
moment,
this
at
their
Selig'man
cor¬
fol¬
lowing the
than
Eustace
,
nine
Distributors
Dealers
of
porations
a
imme¬
ing the
starting
in
for
tion of hostili¬
of
issues
ation
essary to con¬
tinue
price
symposium
our
ready
for adoption.
moment,
would be
opinions
We must not mortgage
fight.
would
period
be
For
I
diately follow¬
by
end,
pro¬
grams
:
mation
able number of the
that
should
Mayor of the City of New York
their views regard¬
ing the subject. A consider¬
adduced
does
have
war
we
to express
war.
it
that when the
business and financial circles
on
the
much of the
Underwriters
all-out
an
field
essential
is
HON. FIORELLO II. LaGUARDIA
recently
requested various
personalities in Government,
been
not
by all Americans, The American
people recognize that a hard war
must be fought the hard way—that
from those
active in the securities industry,
adding that "having been in the
17
the: need
had
it
as
interna¬
tional
impor-^
in this matter the "Chronicle"
"If
to developing a program
Congressional consideration,
respect
for
more
extravagance,
to say :
on
would be both obvious and accepted
war.
of the
one
this record of
went
The initiative with
after the
he
tutes
tant
well
as
the
Whether the existing price control and rationing meas¬
should be continued after the close of the war consti¬
questions uppermost in
current discussions of post¬
war
planning. In an effort to
sound out a representative
cross-section of public opinion
Willkie
Limitation
on
ures
spend¬
ing."
Mr.
article "NASD
columns
funds
more
domes¬
tic
Fixing, Rationing
addi¬
ment
in agree¬
ment with the
was
in the
Post-War Price
prof¬
ligate Govern¬
de¬
clared that he
Profit
as
pro¬
tional
Mr.
liutfett
see
IRA HAUPT & CO.
Members of
Principal Exchanges
111 Broadway, N. Y. 6
REctor 2-3100
Teletype NY 1-1920
COMMERCIAL & FINANCIAL
THE
890
m:
in;
Trading Market$
'
,
Emerson Radio
United Gas Improv.
7..
Botany Pfd. & Common
Warren Bros. Class "B"
Common
'Established, 1920
40
Ass'n
Security Dealers
York
New
Members
115
N.Y.5 HA 2-2772
Exchange PL,
BROADWAY
Telephone
-
^
Elk Horn Coal,
Trecker
Hansen, Professor
Prof. Alvin H.
NY 1-1557
branch offices
:
Royal Typewriter, Pfd.
Mitchell & Compaiuj
77>
"
rectly he notes
$§g
"a rise in
Stock Exchange
Members Baltimore
R">a(iway. N
Teletype
N.
Y. 1-1227
.
Savoy Plaza
The
Curb Exchange
part, result in an increase iri
employment and output without
an
increase in prices. ;• With re¬
System Teletype NY
These
to
i/ndividuials.
in turn may hold the
de¬
posits idle or, in other words, as a
liquid asset available for future
tax payment or for post-war re¬
conversion.
Clearly, we are in¬
terested not in the quantity of
1-1548
American Gas & Power
and demand deposits,
currency
rather in the flow of
Common
but
,
expenditures,
public and private."-
Electrochemical
■
Common
Indiana Limestone
Income 6s,
1952
Inilafion Antidote—
77".'7'7
Telephone:
Bell
CO.
New York 5
WHitehall 3-1223
1-1843
Teletype NY
re-
and
of
General
The
Tire & Rubber
Company, of
Akron, Ohio.
After
The
Last
Post-War
^ buying
Period
be forgotten was
with
a
an egg or a
RED
CROSS
ruptcy to business,
unemployment
of directors
Members
N.
37 Wall St.,
Y. Security
N. Y. 5
Dealers Assn.
During the last war we
labor, and foreclosures and de¬ spent about $30,000,000,000; dur¬
ing this one we have already spent
pression to agriculture.
than $150,000,000,000, and
The end of the first World War more
saw
exhaustion throughout Eu¬ how much more we shall spend
Teletypes—NY 1-1126 &
1127
with uncontrolled inflation
the most violent type in Ger¬
rope,
Hanover 2-4850
J:
of
many.
Remote indeed is the pros¬
pect of the
Eastern Gas & Fuel
4*4% & 6% Pfds.
IjlC Illinois Power
Alt
Issues
American housewife
FASHION PARK, Inc.
Deb. 5s,
1963
FASHION PARK,
Inc.
Common
Pfd.
FASHION PARK, Inc.
New
England Power
Preferred
6%
Pfd.
predict with accuracy.
root of inflation
Rothfeld With
office
G.A.Saxton&Co., Inc.
Teletype
170 PINE ST., N. Y. 5NY 1-609
WHitehall 4-4970
25 Broad St.,
New York 4, N.
HAnover 2-0600
Chicago North-West.
Y.
Tele. NY 1-210
4%s, 1949
Chicago^ Milwaukee, Str Paul r
5s, 2000
& Pacific
7
■'
•
BUCKLEY BROTHERS
Stock Exchange
Members New York
63 Wall Street, New
York 5, N. Y.
WHitehall 3-7253
Direct
Wires to
Philadelphia & Los Angeles
Reynolds 1
the
at
Rothfeld
of
an
was
WITH
ON BONDS
Coupons Missing
Sherry-Netherland,
Mr.
formerly
OR
manager
Fahne7;.:'7;7,777'7-77"
Mutilated
uptown branch for
stock & Co.
7
77777:77
Members New
in
that
starts
State
7
•
C.E.deWillers&Co.
In This Issue
PENNSYLVANIA
page
'
BIDS
WE MAKE
York Security Dealers
120 Broadway,
Assn.
N. Y. 5, N.
Y.
Teletype NY 1-2361
REctor 2-7634
on
898.
•
Scranton Spring
RAILWAYS COMPANY
Brook
Rochester Telephone
Water Service,
Sierra Pacific Power
New York Water Service,
Pfd.
Pfd.
Portland Electric Power
7%
PITTSBURGH
•
Derby G. & E.
Prior Preferred
Estimated net earnings
for 1943-after taxes
Present cash and
Bonds
Washington Rwy. Units
Members
Stock Exchange
1975
Missouri Pacific 4s,
Fifth" Avenue at '59th Street.
N,
Y.
Security Dealers Ass'n
Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
74 Trinity
Successors
Private
Buffalo - Cleveland
Pittsburgh - St. Louis
Wires
Detroit
-
Robert
30 Pine
Member
Mayer
T. J.
to
& Co., Inc.
St., N.Y., DIgby
Bell
to
C.
New
4-7900
Teletype NY 1-1790
York
Security
Dealers Ass'n
Members
77 1/
.
equivalent
.
V
...
-
$4,500,000
.
13,500,000
Selling under 60%
available on interesting
late
BERWALD & CO.
All Issues
Simons, Unburn & Co.
NEW YORK 5
HAnover 2-9470
Teletype NY 1-1140
Information
Northeastern Water
& Co.
Curb Exchange
WALL ST.
64
Eagleof Cincin¬
Reynolds & Co., Members New
York Stock Exchange, announce
that Mr. Robert B. Rothfeld is
now associated with them in their
is in this tivities
(Continued on page 904)
Troster,Curries Summers
Bought^-Sold—Quoted
Members New York
Members New York
of the
SECURITIES
can section containing information and
comment pertinent to dealer ac¬
Southwestern P. S.
England Gas & Electric
$5.50
before the war is over no one
The
Curb Exchange
Frank C.Masteison
of the
to
SreeneandCompciTu^
6a, 1948
*Dealt in on New York
loaf of bread
basketful of paper money;
half of it.
Debentures
Chesebrough BIdg.
the University
Picher Lead Company
and de¬
The Danger of Inflation
and fol¬
Not that there is no danger of
lowed the last war. From 1914 to
1920 the level of commodity prices inflation here; in fact, the danger,
theoretically, is greater than dur¬
was
practically doubled and the
value of the dollar almost cut in ing the last war and post-war pe¬
riod.
War, the last time, took a
half. In 1920 the boom collapsed,
and within a year prices fell by quarter of our national income;
this time it is taking more than
45%, bringing a measure of bank¬
GIVE
:
& Preferreds
Great Amer. Industries
from
Shore
5 y2 %
&
Common
.
the sequence of inflation
flation that accompanied
TO THE
7 *5%
'777
of Missouri in 1924,
country has had experience
Too recent to
Central States Elec. (Va.)
■'7
grad-
nati, and of the Standard Steel
with major inflation on four Spring Company of Coraopolis,
occasions—the Revolutionary War, the War of 1812, the Civil War Pennsylvania.
'7
'
<' 1
and World War I.
With the end of World War II, will history repeat
Mr. Shore's admission to part¬
itself?
Shall we have the inflation that many economists predict as
nership in Goldman, Sachs & Co.
inevitable with the passing of war-imposed controls, or shall we
was
previously reported in the
have the deflation that others anticipate?
■
• 7 ' ';
"Chronicle" of February 17th.
This
20 Pine Street,
has
treasurer
Spencer
Teletype NY 1-1919
Bell System
Mr.
president
T.
WHitehall 4-8120
65 Broadway
signed as vice
Mr, Shore is a member
High Production and Low Taxes
U.S. Realty, 6s 1944
H. G. BRUNS &
Shore
•
Curb Exchange
Members New York
career
1926.
in
board
Preferred
&
i'w Vy~ ?7'%!7.77,-*.
York Stock Exchange
Members New
.
Struthers Wells
Common
iness
Mr. Shore re¬
ceived his degree from the Har¬
spect to commodities for which vard Business School in 1926. and
the output cannot easily increase,
entered the employ of Goldman,
prices will tend to rise long be4 Sachs the same year. In 1931, he
fore full employment is reached.
joined
General- Tire and was
This applies particularly to agrU
elected assistant treasurer. Five
cultural commodities. It is for this
years later he became treasurer,
reason that in general any increase
and in 1941, he was elected a vice
in employment in the urban com¬
president and director.
munities will quickly reflect itself
In August, 1941, Mr. Shore ob¬
in
an
increase
in
agricultural tained a leave of absence to serve
prices."
with the War1 Production Board,
In "his remarks, Professor Hanwhere
he was director
of the
(Continued on page 902) 777
division
of
Industry
Advisory
Committees. He returned to his
duties at General Tire in Decem¬
ber, 1942.
be
will
v
Edward A. Purcell & Co.
7
7began his bus¬
increase in effective
demand all around will, for the
private cor¬
porations and
Hansen
.
New York 5
COrtlandt 7-4070
Telephone
Hooker
H.
Alvin
York Curb Exchange
New
7with which he
result in a general in-:
in the effective demand for
most
firm
banking
;
inflationary
the
;;7j\ '>7-—•-
•,
Laboratories
estment
v
resources, an
its
transferred
Vanderhoef & Robinson
Members
joining the in:
goods and services.
But, if one
starts with a condition of unused
expenditures
and
31 Nassau Street
crease
de¬
finance
to
Preferred
Y.
of
;.:'V7;7,
other national
,
17 exchanges, re¬
heavy Government ex¬
of
Du Mont
7
-f
.
of course,
posits will be
used
by
the
G'av eminent
*United Cigar Whelan
N.
question
effect
newly
created
3-6s, 1956
on
of Economics at Harvard Uni¬
the
level of prices.
♦Traded
Goldman, Sachs
6 Company, 30 Pine Street, New
York City, members of the New
7 '
*
.York Stock
|
Exchange and
posits need penditures and concludes that "an
of
total
expenditures,
not, however, increase
affect the cost public and private, may or may
An
of
living
or not produce a price inflation.
the
general increase in total expenditures will,
WOrth 2-4230
Bell
the
volume of de¬
Y. 5
In Goldman, Sachs
*
;
—-—Professor Hansen next took up
the bonds. di-®
->■'-■■■/.■.
T. S. Shore Partner
general partner in
Symposium in New
potentialities of thfe
public debt.
After pointing out that the process of . Govern-'
ment borrowing increases the quantity of money
(currency and
demand deposits) only when individuals effect-their purchases of
the bonds by borrowing from the banks or when the banks buy
Mayflower Hotel, Com.
New
Co.
La.-Birmingham, Ala.
Direct wires to our
2-7815
KEctor
j7 T. Spencer Shore has become a
versity, in an address before the Tax Institute
York City on Feb. 7, discussed the inflationary
Lanston Monotype
120
Necessarily Inflationary
Not
Com. & Pfd.
Kearney
Bell
'
.
St., New York 4, N. Y.
New Orleans,
BROADWAY, NEW YORK
lei.
Hansen Says Huge Govt. Bonowing
B
Axton-Fisher Tob. A &
\
"7 '
Stock Exchange
HAnover 2-0700
York Curb Exchange
New
120
.
TELETYPE NY 1-423
BEX.L
Bell
25 Broad
•
NEW YORK 6, N. Y.77
'
Teletype NY 1-672
;
BArclay 7-0100
*
..
Members New York
v-■■■■■:7'77. ■'
Members
; v
New York Stock Exchange
Principal Exchanges
Stock Exchange and Other
Members N. Y.
;
Steiner, Rouse &
PONNELL & CO.
SI
Co.
Goodbody &.
-7'
r
0'Gara Coal 5s, 1955
& "C"
NORANDA MINES
king & KING
J
Walworth Pfd.
*
Midcontinent Airlines
1 ■ 7;;.
.
Birmingham Elec. 7%
Remington Arms 7
:
DREDGING
MINNESOTA & ONTARIO PAPER
BULOLO GOLD
Whelan
United Cigar
Birmingham V..1
Elec. 6%
Cyanamid Pfd.
American
iri V. S. FUNDS for
Active Markets
We Maintain
Thursday, March 2, 1944
CHRONICLE
developments.
FEIBLEMAN & CO.
New
41 Broad
Orleans Stock Exchange
Street
BOwling Green
New York 4
9-4433 Tele. NY 1-493
Volume
159
The
Reg.
U.
William
k
25
']
CHRONICLE
8,
B.
Patent Office
Dana
•
Antilia
V;: -/
BEekman
i
•'
v"'^:V
-v.-;'
■■
3-3341
.
_•
Punta
;/'•/
•■/•;
Camag'y
Editor and Publisher
William
Dana
D.
Seibert,
Riggs,
Business
Manager
Published twice
Vicana
every Thursday
and
news
and
.
(complete statistical issue—market quo¬
records,
corporation,
banking,
135
news,
S.
La
Members
etc.)
Salle
32
St.,
New
York
Security Dealers
•'.V,
Ass'n
Sold
—
1528
,
t
2-0790
1943
Reentered
by
as
William
B.
Dana
m
second-class matter Feb¬
CERTIFICATES
*'
Other Publications
How
1.
ment be
Issued by
Lawyers Mortgage Co.
$27.50 per year; South and
America,
Spain, Mexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
N. Y, Title & Mortgage
greater
may
produced?
WALNUT
figure
now—-and
us
ever
we
.
you'll
among
Obsolete
STREET
Wall
Philadelphia Phone
•
2
heard
quote
or
bond.
probably
friends.
your
Securities Dept.
Street, New York
Telephone:
Pennypacker 0300
WHitehall
4-6551
TITLE COMPANY
j
Co.
be
Bought—Sold—Quoted
made
in
New
York
can
ical and
men¬
tal toll result¬
ing
Newburger, Loeb & Co.
Members
40 Wall
Bell
funds.
New
York
St., N. Y. 5
Teletype
Stock
NY
from
the
of
pressure
Exchange
which
1-2033
caused
has
more
deaths
than
have occurred
NASD Headache Continues
Ever
the
since
Board
of
Governors
of
the
Take the
converse
Some fanatics committed
of this.
to the
"5% spread philosophy" have been withdrawing busi¬
ness, or it is feared, they will diminish the number of their
trades with those in their circle who are fearless in espousing
the American doctrine of free
enterprise.
As
an
indication,
front
itself?
line
The battle for
production
Association of Securities Dealers
promulgated its "5% spread
philosophy," that organization has been in a seething turmoil
because of the storm of protests which resulted and. which
is continuously gathering momentum.
At first, for fear of reprisals, the anger of dealers in
securities was self-suppressed.
The "power of visitation"
possessed by the Securities and Exchange Commission and
the NASD was regarded as a sword of Damocles.
There
was also the
danger of exclusion from underwritings and
participation in secondary offerings and the like.
In years gone by, when anyone was made a member
;o£ the Board of Governors of the Stock Exchange, the
appointee was usually showered with new business. That
was a way of making a bid for the goodwill of one powerfully
placed on a body that then ruled with an iron hand.
.the
on
National
a
mental
is
one,
and
the
solu¬
tion
CERTIFICATES
BOUGHT
SOLD
-
-
to
the
Gustave
problems is
found in mo¬
Simons
rather than-in any tangible
facts.
•
-K
rale
QUOTED
is
by
you.
which
our
_
our
first, opposition preferred to hide its identity. Many
readers wrote to us asking that if we published their
letters, the names be withheld.
In one way or another,
directly or by inescapable inference, fear was ex-r
pressed, fear of quick reprisals.
Correspondents said that
they "didn't want to stick their necks out," or "act as the
goat," etc., etc.
rf
either
Gradually, however, some degree of courage came to the
forefront.
Dealers began writing in and authorizing the
publication of their signed letters. The issue was regarded,
and is regarded, as of first importance, as affecting the very
life's -blood of business generally.
The storm of opposition
is daily becoming more ominous, promising to reach pro-^
portions where the whole structure, if not the very existence,
of the National Association of Securities Dealers may be at
stake.
There is talk of legislative relief by curtailment of
NASD powers.
The
v
feeling is prevalent that the
passage by the Board
rule which under the by-laws of the NASD
should have been submitted to the franchise of the member¬
of Governors of
issues
from $250,000 to
$500,000 and orig¬
When
the
.
a
betrayal of that membership.
(Continued
on
page
900)
as
the toll
*Du Mont Laboratories
illness, death and disability is
^
■
Wide experience in the field of
labor relations in the field of war
Majestic Radio
production has demonstrated that
the
best
solution for this
job of produc¬
single
battle in the vital
tion
is
to
found
be
the
in
Em¬
ployees Benefit Plan.j
,* V: /
In such a plan, a group of elig¬
ible
employees
is
designated.
Various formulae are permitted.
All with a certain period of serv*Mr.
tions
Simons
is
a
Rela¬
Labor
Representative,
active
in
Punta
(Continued
on
..
smaller companies all the
capital required, which was for¬
merly supplied through the in¬
vestment channels, the services of
underwriting firms like ours be¬
many
sion
the
to
almost
zero
for
past two years, which condi¬
prevail today. ;
Our firm has kept the door open
by working on other matters,
awaiting the day when the war is
tion continues to
Ill
and
York
the
Government
longer supplying working
is
no
Security
Dealers
Assn.
Broadway, New York, N. Y.
Bell
System Teletype, N. Y. 1-2480
TRADING MARKETS
Stromberg-Carlson
Gisholt Machine Co.
Bartgis Brothers
Haloid Co.
..
but, on the contrary, desirous to
liquidate its many investments in
equipment and defense plants to
those companies now using such
purposes.
We
a revised
underwriting busi¬
ness bailing out Government
in¬
vestments
and
supplying
new
capital for many smaller compa¬
nies for expansion of their post¬
thought
we
HlltlOD&fo.m
170
Broadway
COrtlandt 7-6190
System teletype NY 1-84
Bell
war,
could foresee
and prosperous
Eastern
Sugar Associates
Haytian Corporation
Punta Alegre Sugar
Vertientes-Camaguey
•
:Vn.
readjustment.
>
But,
now,
this 5%
Profit Rule
of the NASD has thrown
a
bomb¬
DUNNE & CO.
Members New York Security Dealers Assn.
'
over
Request
Members
Neio
unnecessary.
dwindled
on
J.F.Reilly&Co.
This is the war business. We felt there was
principal reason why the number great possibility of rendering im¬
of applications for qualifying of portant service to help provide
corporate financings before the jobs for returning soldiers and
Securities and Exchange Commis¬ sailors in the period of post-war
came
*Memo
KEctor 2-5288
905)
page
Alegre
Vertientes Camaguey
War Production.
facilities- for
Government /gave
shell
into
plans
our
tions and today we
sibility of doing
continued
capital,
and
doubt the
any more
on
aspira¬
page
25
pos¬
$1
Pacific Qaait
St., New York U, N. Y.
3-0272
under-
905)
American Cable
dividend
and Radio /
paid January 15, 1944
SecuitUizi.
Broad
Tel. WHitehall
Panama Coca-Cola
Dividends
1943—$4.50
1942—
Warrants
3.65
Approximate selling price 32
•
Wyeth & Co.
*
HoixRsseSIrssier
Since 1893*
a
ship, constituted
discontent is enhanced
of
firm is much concerned.
underwritten
Teletype NY 1-1203
every
In part, it dealt with a phase of the security business in
firms have joined.
At
hand,
while its own wages are frozen,
voices increasing discontent. This
on
Feb. 24 issue of the "Commercial and Financial Chronicle"
the "Chronicle" was discriminated against
advertising because of its opposition to the
"5% spread philosophy."
Despite all these potential threats to their commercial
well-being, dealers have become, and are increasingly be¬
coming, more articulate in their firm opposition to the
doctrine of placing a ceiling on "spreads" between the pur¬
chase and sales price of securities.
it that
profits
very
have
We
Broadway
HAnover 2-8970
splendid article titled, "NASD 5% Rule Threat to
Post-War Employment and Small Business," by Philipp H. Lohman,
Ph.D.; This article is one of the best and most timely ever published
a
inated larger issues up to $4,000,000
in- which> other investment
to
39
New York 6, N. Y.
Labor which hears of so-called
fabulous
Information
Members New York
Security Dealers Assn.
Editor, "Commercial & Financial Chronicle":
In your
Statistical
L J. GOLDWATER & CO
for higher wages
Why NASD 5% Rule Will Close
Capital Markets To Small Business
there
Complete
INC.
'
.
foregoing
too, that such fears are not unfounded we have only to
mention the fact that some of those in this category have
with respect to
manage¬
—
production observed.
WHitehall 4-6330
and
i>
to
the phys¬
'
foreign subscriptions and advertisements
labor
.
done
ease
NOTE—On account of the fluctuations
In the rate of exchange, remittances for
between
v ' 2. - How may the conflict between pressure
and the desire to avoid inflation be resolved?
All local Title Companies
Monthly Earnings Record—Mth... $20 yr,
be
harmony
/;
3. What
-
of
it
99
;
Bank and Quotation Record—Mth. $20 yr.
,,v
the
that obsolete stock
on
number
Anyone active in the battle of - production, so essential to our
effort, is faced with these problems:
war.
Canada,
seen
be
may
you
In The War Effort
MORTGAGE
Company
Central
•
of
,
Quoted
—
PHILADELPHIA
Harrison 2075
Teletype CG 129 /
DIgby 4-8640
Subscriptions In United States and
Possessions, $26.00 per year; in Dominion
>
'
August 1, 1968
Promoting tabor Harmony
3, 1879.
4
NUMBER
The luckiest number
you
;
REctor
CHICAGO 4
Teletype NY 1-832. 834
ruary 25, 1942, at the post office at New
York, N. Y., under the Act of March
must
LUCKY
'■
By GUSTAVE SIMONS*
Copyright
•
1, 1973
Wti Yarn all
Smith.
Of
August
Get
Bought
New York Phone
Board of Trade Bldg.
Broadway
NEW YORK 4
Chicago 3, 111. (Telephone- State 0613),
in
charge of Fred H. Gray, Western
Representative:
1
Drapers*
Gardens,
London, E. C., England, c/o Edwards &
!
AND COMPANY
STRAUSS BROS.
tation
Offices:
-llCHTEIISTEir
BONDS
1975/65
Monday
Clearings, state a/nd city
Other
Due
'
Due
Cuba Railroad
advertising .issue)
every
1975/62 and Jan. 1,
*
Sugar |
week
a
PHILADELPHIA
1,
COMMONWEALTH OF PENNSYLVANIA
TURNPIKE REVENUE 3%% BONDS
Haytian Corp.
President
Thursday, March 2, 1944
(general
891
DELAWARE RIVER JOINT COMMISSION
REFUNDING BRIDGE 2.70% BONDS
Alegre Sugar
Vertientes
>.
OF
Jan.
'
.
.
Herbert D. Seibert,
William
CITY
:
Sugar Est.
Company
'Publishers
Spruce Street, New York 8
':
■
CHRONICLE
COMMERCIAL and
FINANCIAL
/
THE COMMERCIAL & FINANCIAL
Number 4260
NEW YORK
LOS ANGELES
Established 1914
Members
74
Members Los Angeles
Stock Exchange
N.
Y.
Security Dealers
Assn.
Trinity Place, New; York 6, N. Y.
C. E. Unterberg & Co.
Members New York
61
Security Dealers Assn.
Broadway, New York 6, N. Y.
Telephone:
<Teletype:
Telephone BOwling Green 9-3565
BCwIing Green 9-7400
NY 1-375
Teletype NY 1-1666
We
interested in offerings of
are
Thursday, March 2, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
892
1
R. W. PRESSPRICH 8c CO.
Members New York Stock
Wakw&CO.
High Grade
Public Utility and Industrial
S
ACTUAL TRADING
Stpd. Pfds
Bos. & Me. Prior &
Steel
Wickwire Spencer
Alegre Sugar
Punta
Knowledge
.
{
I v
,
1
.
'
'
* '
' *
'
J- '
*
.
'[
,
<• "t'
,
V'
•
'i,t
' ~
'7 '
Pfd.
Peoples Light & Power
Bird & Son
Analysis
Bristol & Willett
request
on
7
''Hartford Empire Co.
Established 1920
Stock Exchange
Stock Exchange
Members New York
*Long Bell,Lumber
and Chicago
Telephone
Loft Candy
Dearborn 0500
Whelan
United Cigar
Teletype
:
*Haskelite
Salle Street
209 South La
115
Wires
Bell
-\
By HERBERT
Airlines
Export
& Co.
Aircraft
Majestic Radio
♦Mid-Continent Airlines
National Airlines
growth in bank bond holdings is the
of
t
Airlines
Northeast
Heat & Power
A//
Aircraft
Rohr
Anthat
of $132
York.
were
& Lewis
Warner & Swasey
Bendix Home
to
Giddings
Appliances
Haloid
'
,r
their
'
.
*
•
Harvill Corp.
Tokheim Oil Tank
which
are
presently kept
War.
intact for sub¬
post
war re¬
serves.
A n d
Illinois Power Div. Arr. and Com.
Pub.
Serv.
E. Pub.
N.
&
Electric
Southwest
Tel.
Serv.
$6
tional
Light & Power
Transit
American Utility Service Pfd.
sion
Syracuse
Elec.
&
addi¬
expan¬
may
oc¬
if produc¬
and
em¬
ployment slump as the result of
lack of stimulus from private in¬
vestment.
In that event, a pro¬
Queensboro Gas & Elec. Pfd.
Lt.
cur
tion
Puget Sound Pr. & Lt.
♦Mass. Power & Lt. $2 Pfd.
United
Herbert Spero
Com.
Ltg. Pfd.
Suffolk
&
Nassau
Dr.
Gas Pfd.
&
Iowa Southern Util.
-
further
& $7 Pfd.
Conn.
Cons.
Rys. W.I.
of "government investment"
path of least re¬
gram
would offer the
E. 6s
G. &
Washington
r/
;
Public Utilities SY2s
Elec. Issues
Chicago Tractions,
Commercial Mach.
Milw.
Paul Adj.
Central
Frisco
5s
4s, Sy4s, 5%s
R. of N. J. 4s, 5s
R.
4 V2
4s,
s,
5s
/
4%s
4l/2s,
& Essex 4Vis
•
N.
Chicago,
Baltimore
Morris
& St.
'W.
Ohio
&
*
1
5s
\'
INSURANCE STOCKS
.
T
il
'*.
' •;
ft
of
burden
the
or
:
wire orders at
our
expense
on
.
,,
,
,
,
end,
in
with con¬
emphasis by the Treasury
placing the
on
hands
savings
of
national debt in
its citizens, total
bonds may
increase this
year in an amount equal to the
$12,500,000,000 expansion reported
120
Y.
Security Dealers Assn.
Broadway, N. Y.
REctor 2-8700
Established 1926
Teletype NY 1-1288
Direct Wires to
BOSTON
—
HARTFORD
for 1943.
total
reach
ThuSj by the end of 1944,
savings;, bonds easily may
a JWtai
of $35 billion or
more.
—
8.00 /'
4.49
Capital
Earn»ngs_„^_^___«
Mos.
9
price 8%
Recent
v
Analytical discussion on request
•'
During
porarily
surrendered,
Further¬
more, if the period of post-war
dislocation is protracted and sharp
unemployment' results, redemp¬
tions will certainly expand in re¬
1870
^tEY\Teleph^r
'
DALLAS
/
Bought
'
and
Dr.
tivities in the
Dallas
mercial bank¬
J
Ry. & Terminal 6% 1951
Preferred Stocks
All Texas Utility
ing in the last
have
' X
SpVestern Pub. Serv. Com. & Pfd.
com¬
will
r
Southern Union Gas Common
panded its ac¬
years,
Pepper
Republic Insurance '
;
few
Quoted
Sold
—
'
-
ex¬
qf
Teletype BS 259
: :
t a 17
greatly
field
0425
'•
-
founded
in
CAP.
the
e n
/
*
148 State St., Boston, Mass.
Tel.
he
Check
us
on
Southwestern Securities
op¬
portunity
RAUSCHER, PIERCE & CO.
to
full
scope
to the
ability which
give
'-
DALLAS, TEXAS
/ Houston
«
-
San Antonio
-
his
won
to pressing necessity. •//
James A. Jackson
recognition as
Liquidation
of
Government a commercial
•
/
bond holdings may also - be ex¬
banker before he entered the in¬
pected from industrial corpora* vestment banking business.
'
tions.
Corporate
holdings rof
/Mr. Jackson's election to the
Treasury issues are estimated at
Presidency-'leaves Frederick E.
roughly $17 billion, and much of Hasler, who assumed the addi¬
this amount has been earmarked
tional duties of President upon
sponse
ST. LOUIS
.
In the ordi¬
of events, financial
requirements for plant rehabilita¬
tion, reconversion and expansion
post-war reserves.
as
nary
course
will necessitate the sale of a large
volume of these Treasuries.
the death of Frederick H.
7
LONG BELL
LUMBER
Hornby
1942, free to devote his services
to the duties of Chairman of the
Board.
■://, •5./■■
/ :/•
in
ioUGHT
But, most important of all, we
overlook the possibility
Mr. Jackson,
in
Missouri, where his father was
qf deficit-financing
post-war period. Such a
program would increase the bur¬
of
QUOTED
'eltason, Tenenbaum, Inc:
Troy, and he was
program
the
in
~~
the new President
Bank, was born
President of the People's Bank
a
SOLD
of the Continental
must not
of
—
-
the. University.of
803
/
Landreth Bldg.
>:
; /ST. LOUIS 2, MO.
;.
'
/
"" L. D. 240
Teletype—-SL 486
,
some
$27,500,000,000
the hands of the non-
year
the
Members N.
•
ViceCity
graduated from
Missouri in; 1910/
His, first job was with the Gate
den on the banking system, as
City /National Bank 'at Kansas
bank
credit would ^furnish the City. In 1915 he went Into the
only practicable means of financ¬ farm mortgage business at Fort
system.
%
Consider the large volume of ing. And deficit-financing seems Worth, Texas, -and-two years later
assured if the boom, which so entered the employ of the Na¬
savings bonds outstanding in the
tional City Bank of New York.
hands of the public. As of the last many economists predict, fails to
banking investors. And
Request
would
the commercial banking
system.
Post-war bank invest¬
ment policy will be determined,
therefore, in large measure, by
influences
outside
the
banking
tinued
*Circular
financing
fall upon
were
Phone
unemployment.
a
.
4
administration.
setting,. the national
debt would continue to swell and
such
In
Pac,
Missouri
deal with
to
ures
All Issues
4s & Wts.
Chic.,
any /
Large-scale deficit financing
would quiet - public
clamor for
more direct and aggressive meas¬
1960
Indiana Limestone 6/52
Associated Gas &
to
sistance
Inland Power .& Light 6s
Central
stimulus is
-
a
National
/ which
Co.,
dissipated, it is not unlikely that
redemptions will increase rather
diminish.
for the last
formerly
the
Presi-
.
of
was
the
post-war y, period
many people will want to cash in
part of their bond holdings/ to
avail themselves of some of the
luxuries which they have tem¬
sequent use as
♦Central
the patriotic
—$16.35
Working
Bank & Trust
war
than
—
holdings
& Pump
Dearborn
& Cable
Radio
Amer.
Govern¬
ends and
the
As
dent
Contin
vestments
& Thermit
A. E. Staley
Consolidated
on
After
was
of
Bank of New York.
ment bond in¬
/>/
♦Doyle Machine Tool
♦Metal
realize
redeemed.
He
President
1943, $1,585,000,000 of these bonds
corporations
may also wish
♦Richardson
Eight Years
becoming. President of The Con¬
million per month. During
industrial
Sugar
Vicana
Capital Stock
,
^Equity
tinental Bank & Trust Co. of New
in their savings bonds at the rate
is
other
BS 424
Teletype
Co., returned on March 1 to the
field of commercial banking by
/
bonds.
Aircraft
Northrop
Petroleum
—
—
v
of the investment
banking firm of Lazard Freres &
probability of public liquidation
savings ♦>
9, MASS.
4330
8 years partner
Although Government bond holdings of our commercial banks
now stand at $62 billion, the highest level in history, it is not likely
that they will decline after the war. In fact, it appears probable that
the post-war period will witness further expansion.
• ,
One important factor which may account for an early post-war
Corp.
Hoe
,
Staff of Research Council of the American
(1939-1941). Author of "Reconstruction Finance
Corporation Loans to the Railroads" (1932-1937).
Magazine Repeating Razor
♦Great American Industries
R.
School of
Last
Bankers Association
Remington Arms
Aeronca Aircraft
♦Kellett
Lazard Freres Partner
y
t
Formerly Member of
Pfd.
Auto Car
Bank Building
Pollak Manufacturing
Bank & Trust Co.
James A. Jackson,
South Shore Oil
Eastern
SPERO, Ph.D.
The City College of New York,
Business and Civic Administration
Lanova Corp.
Pontr Homsey Co.
Capitol
James A. Jackson
Pres. Of Continental
And
Dept. of Economics,
Pollak Manufacturing
du
1-1493
BOSTON
National Fiscal Requirements
A
Instrument
Worsted "A" and Pfd.
♦Southwest Lumber Mills
Triumph Explosives
Stockyards Preferred
Shawmut
Emerson
Botany
Teletype NY
System
West Coasts
Bank Investment Policy
Carlson
United
Broadway
Telephone BArclay 7-0700
to-
and
East
.
Auto Ordnance
-
Remington Arms Co.
United Elastic Corporation
•.
NEW YORK 6
Direct Private
Chicago 4, Illinois
Chicago 35
Radio
♦Merchants Distilling
.
Members New York Security Dealers Assn.
CRUTTENDEN & CO.
®
Maryland Casualty
Securities Co.
Christiana
•.'•••;!
American
Facilities
Art Metal Construction
/'
COMMON STOCK
Polaroid
Hearst
♦
for Investors
Bought—Sold—Quoted
Manufacturing Co.
A. E. Staley
t/l
Consolidated Textile
♦General
Experience
•
...
BOSTON
Mallory
Stromberg
"•
Laboratories "A"
*Du Mont
P. R.
BONDS
STOCKS
/A,;-
■
*Crowell Collier Pub.
:
INDUSTRIAL
INVESTMENT
Common
.
Mokan "A"
"78C
.0.'-A;-:y/';
V't'l'-1"■■
Nut Com. & Pfd.
Elastic Stop
MUNICIPAL,
RAILROAD, PUBLIC UTILITY
;
Stock Exchange
Members New York
Pfd.
Moxie Com. &
744 Broad St.
Teletype NY 1-5
HAnover 2-4300
Telephone
Sugar
Vertientes Camaguey
201 Devonshire St.
Bradstreet, Inc.
7
York
25 Broad Street, New
77
NEWARK:
GOVERNMENT,
|||§Spencerp1rask|&|Go. Jfg
York
BOSTON:
Dun &
PREFERRED STOCKS
MARKETS
Exchange
William Street, New
68
PHILA.
Currently, investors are cashing
materialize promptly.
On
war
affected by the large
cumulated
and the
/
the
savings ac¬
during the war years,
tremendous deferred de¬
peace-time goods. But,
other hand, governmental
mand for
on
»
the. credit side, our post¬
economy will
be favorably
In 1922 he
President
of
was
the
of the Chicago,
elected
bank in
Vicecharge
acity
for
u
i:)niiniT
a
a
St. Louis, Kansas
City, Minneapolis, Dallas and San
Francisco Federal Reserve dis¬
tricts. After serving in that cap¬
National
?
Sjtx, s. Cor
SAINT LOUIS
509 OUVE ST-
Bell
System
Teletype-—SL 80
14 years, he left the
City Bank to become a
policies may be such 'as to dis- partner in Lazard Freres & Co.
where his long banking experi¬
cou/T.ge
private investment and
ence and many business contacts
enterprise. International currency
stabilization, despite present dis¬ proved a valuable asset to the
firm; he continues as a substantial
cussion, may yet be unsettled.
stockholder of the bank.
(Continued on page 911)
Members St. Louis
Stock Exchange
Volume 159
Number 4260
THE COMMERCIAL & FINANCIAL CHRONICLE
893
■—%
THE UNDERSIGNED ANNOUNCE THE DISSOLUTION
OF
HERE IS AN OPPORTUNITY
I
lilln
•
•
i'-i
.
TO ACQUIRE
::
r.
.
,
linn
B.
W.
Pizzini & Co.
A
' 7
.
.
V
.
'
—
AS
OF
THIS
DATE
•mil
jjjjjj
LARGE SUCCESSFUL ENTERPRISE
• inn
• iiuii
B.
• mil
WINTHROP
PIZZINI
Aldred Investment Trust
iiiiii
RIIIII
BY MERGER
T,
mm
IV
...
mill
HUM
>"•
•■•"t',
i.
;
..
V.'-,. ;>
\
':<K
7
•"
7,
-'-v'v,;1 'vi-.,-,
I
f
.
*
V7
\
.
•" 7
'•■V7.;. ;
• mil
7 : ;Ly.'-
.7 7
7.
■•
v"
:•
GALE
iiiiii
• iuii
V'7y'
FEBRUARY 29,
•mil
B.
CRUTCHFIELD
4l/2s, 1967
,
1944.
Brown
One of our clients...
large Eastern corporation that
a
•mil
iiiiii
iiiiii
'
'
WE
• Mill
leader in the heavy goods industry and has
a
i
TAKE
iiiiii
•mil
7
iiiiii
been
successfully operating for
over
half a
5s,
PLEASURE IN ANNOUNCING
• Mill
century
THE FORMATION
,
OF
jiiijj
iiuii
6s,
have nation-wide
mm
mm
huh
•
.
acceptance
mm
nun
mm
mm
mm
nun
mm
• Mill
hum
now
illin¬
Mill
•
mm
iiiiii
sales
Hill
nun
mm
mm
mm
r
iiiiii
hum
men
,
.
Whose sales
during 1943
were
mm
mm
77;/
mm
nun
mm
iiiiii
in eight figures
hum
lent post war
nun
nun
iiiiii
version
mm
mm
...
iiiiii
outlook with little, if
would consider
iiiiii
mm
hum
MARCH
•mil
1,
hum
■ iuii
iiiiii
mm
• uiii
V
hum
huh
• Mill
hum
hum
^
iiuii
• Kill
• Mill
hum
Province of Alberta
Legislation Favored By President
hum
any, recon¬
4y2s, 1959
Urges Preference In Govf. Jobs For VeteransProposes Employers Use Govt. Record As Guide
hum
excel-
an
Steep Rock Iron Mines, Ltd.
HUH
merging this enterprise with an¬
corporation, or disposing of
hum
hum
iiiiii
hum
huh
iiiiii
not
are
The
huh
in
<
hum
•
mm
iiiiii
IIIIII
For interview with
;
iiiiii
an
officer of the
All
• Milt
mm
iiiiii
riiiii
iiiiii
IIIIII
HUM
for
IIIIII
Issues
afterward, to designate Fed¬
jobs which would be avail¬
years
IIIIII
• Mill
mm.
eral
HUH
IMIII
MUM
S iiiiii
,':v line:
■
able
HUM
"*'IIU
"ill
made
the
Twenty-five
in Wall
years
Street. Attention N. Y. Stock
firms, banks,
Exchange
tributing dealers
—
dis¬
also out-
of-town firms desirous open¬
ing small N. Y. office.
perience
trading,
covers
and : portfolio
tact
draft age.
above
Ex¬
dence invited.
con¬
work—
Correspon¬
Box S 8, The
Commercial
Financial
&
Chronicle, 25 Spruce St., New
York
Salle Street,
National
which
engaged
years
in the
from competition for
em¬
pro¬
mem¬
heads
of
all
ments and
following
actively for
Executive Depart¬
agencies and to Robert
Ramspeck, Democrat, of Georgia,
Chairman of the House Civil Ser¬
vice Commission. •
A -
commercial
business as a partner oil
In his letter to
Representative
Hathaway & Co. For a short time
Ramspeck the President said that
recently he has been connected
he believed legislation
relating to
with the Federal Reserve Bank.
preference for veterans in Federal
paper
Securely Executive
With
20
experience
years
in all departments of the se¬
curity business, including the
of
merchandising
would like
Stock
a
firm
Exchange
to
office
member
opening
to
a
the
serve
of
counties
North-Central
Pennsylvania.
S
Box
'
10
'7'/7:i.
'
The Commercial & Financial
Chronicle, 25 Spruce St.,
I-- -V
.
The
Securities
and
Commission announced
Exchange
Feb. 26
on
further
a
postponement, until
Wednesday, March ,<29, of oral
arguments in proceedings to re¬
view disciplinary action taken by
the National Association of Secur¬
ities Dealers, Inc., against certain
members for violation of
New York, N. Y. 777':
:
NASD
to negotiate with
relative
branch
securities,
maintenance
agreement;
been granted to enable
ciation to file
A
pre¬
N.
Feb. 26.
bank
Spruce
N<~Y17
f.V">
St.,
Chronicle,
Be Partners In
8,
■
■
Patrick B.
E.
7,
'
•
McGinnis and
Broadway, New York City,
bers of the New York
F. L. Free & Co. Formed
Announcement
is
made
of
the
change,
on
Mr.
and
formation of Frederick L. Free &
to
deal
in
over
the
securities from offices
at
counter
19 Rec¬
St., New York City.
Hugo
Sellger will become partners in
Pflugfelder, Bampton & Rust, 61
7 ,7
-7<' '
I
7
Pftagfelder, Bampion
25
York
New
restrict
time
the
to
following ,the
veterans
positions
to
time,
be
war,
to
examinations
from
designated by
as
may,
President."
"Those who
•
life
of; the
fighting for the
nation
known
McGinnis,
as
a
rail
A*':
who
is well-
analyst,
have
with the firm for
'
many years.
/
Ex¬
March 9th. Mr. Sellger
been associated
!
mem¬
;
.
n-.
HART SMITH & CO.
52
WILLIAM
7 :
con¬
St., N. Y. 5
IIAnover
Bell Teletype NY
New York
2-0980
1-395
Montreal
Toronto
We should be in
position to take full advantage of
this
fact."
The
main points on which the
President asked legislation in ad¬
dition to that giving him author¬
ity to
for
American Cyanamid, Pfd.
Eastern
designate jobs exclusively
ex-service
men
are:
Sugar Associates, Com.
Lawrence Portland Cement
(1) Provision for the point sys¬
give veterans a
tem which would
Ohio Match
ernment officials for
veteran
a
to
passing
employ
"This
eran.
will
in
one
the responsibility for de¬
termining whether or not a vet¬
agency
is
eran
for
to
f ^
Frederic H. Hatch &Co.
Incorporated
63
Wall
Street
Bell
New
York
5, N. Y.
Teletype NY 1-897
consideration
particular job," the Presi¬
Ramspeck.
;v ; '
Provision for special con¬
a
dent
entitled
Universal Match
over
non-vet¬
a
center
Penn. Bankshares & Sec. Pfd.
wrote
(3)
WE
sideration
for veterans whenever
Government agencies have to cut
down
BONDS
their
personnel.
principles are covered
substantially in legislation already
introduced by Representative Joe
BUY
These
Starnes,
Democrat, of Alabama,
said, and "I sin¬
Roosevelt
cerely
bill
hope,
may
therefore,
receive
sympathetic
Congress.'^
that
early
the
consideration
A
;
'
Coupons Missing
77.
this
Chairman Of British Chemical
•;l;7.i7:77
and
of
•
WITH
the
-
-
GUDE, WlNMILL & Co.
Members New York Stock Exchange
1 Wail
St., New York 5, N. Y.
DIgby 4-7060
industries
Teletype NY 1-955
Giles
Valise Cf Private Enterprise In War Effort
Speaking before the Glasgbw Chamber of Commerce on Feb. 1
McGowan, the head of the Imperial Chemical Industries, one
Great Britain's largest industrial
corporations, for the first time
since the outbreak of the
War, gave an account of the high accom7
•
Delaware Rayon
-
Lord
of
the
as
early
extraction
as
war
effort.
This work
was
1935, when the Imperial Chemical Industries began
of; oil "from
coal
Since that time the output of oil
from British coal has
enormously
have
been
justifiable risk of public money."
"Nowhere
else
in
'7;
the
Empire
experience
of the hydrogenation
process," re¬
there
were
State"
men
Lord
with
McGowan.
"What
department,' what body of
and
not least;
Lord
,
7;7l
•
7;7;7.'!V
getting it through
which would
criti¬
undertaken
company.
Great American Industries
of
Parliament,
cize the venture
fey the
,/;
New Bedford Rayon "A"
777: 7V
increased, largely through the ex¬
perimentation and research work
marked
Stock
1949
government.
Mr.
are
today," Mr.
Roosevelt declared,
"will, upon
their
Return to civilian life, be in
started
W 1, The Commercial
Financial
&
'7.1.
7; ;.7;-
Salary 360.
positions.
Box
on
Sellger, McGinn is To
trader
stock
to execute orders and trad¬
ing
Philadelphia
7 7 177
unique
a
6s,
which
one
tribution to the administration of
plishments of his firm in promoting the
ing seeks services of expe¬
rienced
reported in Associated Press
from
years
for. such
a
stand¬
Firm of long
Y.
reply to briefs of
Department of Justice.
This
was
TRADER
five
the Asso¬
the
dispatches
position to make
Western Grain
•
a
price-
a
vious extension until March 1 had
BANK STOCK
jobs should include this provision:
"Authority shouldv be granted
during the war and for a period of
.
Hearing Put Off
By SEO Until larch 29
a
1
Government policy by
also indicated as stating
as
adding war service points to their head start on other competitors
other qualifications.
for non-exclusive Federal jobs.
The policy was set. forth in let¬
(2) Authority for the Civil Ser¬
ters to Harry B.
vice Commission to determine the
Mitchell, mf the
Civil Service Commission, to the
validity of reasons given by Gov¬
Bank,
he
ex¬
posed legislation would get special
consideration through a system of
asso¬
originally came from New York
to join the staff of the old Conti¬
nental
not
are
ployment, veterans under this
bers of the New York and Chicago
Stock Exchanges. Mr. McCarthy
many
v
8, N. Y.
Where non-veterans
cluded
ciated with Alfred L. Baker & Co..
South La
President, according to the
Press, from which we
also-quote:
CHICAGO, ILL.—John McCar¬
thy, widely known in midwest
Ill
exclusively to veterans, was
to Congress on Feb. 28
by
Associated
John McCarthy Joins
Alfred L Baker Co.
banking circles, has become
5y2s, 1957
down
the
IIUII
HUM
mm
laid
was
The request for legislation which would
empower the President
rest of the war and five^
HUM
kindly address Albert Frank-Guenther Law, Inc.,
Advertising, 131 Cedar Street, New York 6, N. Y.
iiiiii
employment
shall be accorded preference
men
employers."
• Mill
Company
mm
iiiiii
iiiiii
Federal
ex-service
President Roosevelt on Feb. 28.
He was
that the record of the Government as to
veterans "must be
will constitute an
example for all
Mill
HUM
HUM
'
principle that
huh
mm
tor
3l/2s, 1956-1973
Power Corporation of Canada
hum
mm
Co.
STAMLER, Secretary & Treasurer
1944.
hum
interested in- any
so-called "tax-umbrella" situation.
nun
\
Internals
Montreal Light, Heat & Power
hum
*
the business. Our clients
mm
iiiiii
.
J.
hum
other well established
nun
mill
.
Dominion of Canada
V
President.
Vice President
hum
iiiiii
.
PIZZINI,
HALSEY,
CRUTCHFIELD, Vice President
HAROLD
hum
mm
,
GURDEN
hum
hum
problems
mm
.*
WINTHROP
GALE B.
•mil
• Mill.
large backlog of war orders and
a
mm
mm.'
•-
B.
W.
hum
Has
-
nun
'
Paper
5y2s, 1961
-
.
• Mill
• mil
iiiiii
hum
c
:•
'•
HHH'*<
and resulted in substantial
profits—with sales and
earnings currently running at about the same rate
as last
year 71777:7?7el 77/77.7?777■ ,7/77/1777
mm
*
Broadway, New York
iiiiii
iiiiii
iiiiii
1953
Consolidated
Telephone BOwling Green 9-6400
hum
• Mill
mm
5s,
''
"
hum
■mil
mm
mm
mm
.
55
iiiiii
'
,,
l.y
,
hum
.♦
mm
./
'Incorporated
*'
WITH OFFICES AT
iiiiii
iiiiii
iiiiii
\l,
\
-
hum
hum
aggressive
mm
Canada Northern Power
iiiiii
manufacturing, engineering and
facilities, and is managed by competent and
mm
.
,
HUM
Has extensive
■ mil
l Internals
GUARANTEED RAILROAD STOCKS-BONDS
huh
ium
iiuii
hum
iiiiii
•
production is
*11111
huh
huh
profitably directed
towards the war
effort—producing practically the
same kind of
products manufactured in time ofpeace
mm
Canadian National Railway
• Mill
hum
Whose entire
:
hum
shim
nun
■ inn
mm
1949
hum
Manufactures an outstanding line of products that
nun
1959
Canadian Internal'! Paper
!
mm
• Mill
0
Company
• Milt
• Mill
• mil
;
HALSEY
•una
ijiii;
1
GURDEN
•mil
•
.
W.
• mil
OR PURCHASE
on
every
that it
was
ground,
an
un¬
McGowan expressed with
pride the fact that his
tion has had
no
organiza¬
F.H. K0LLER & COMPANY
mi
INC.
111
Broadway, New York 6, N.^.
BArclay 7-0570 1
NYlVi026
major labor dis¬
pute in five years of war. "Surely
this afforded some indication of
take the commercial risk involved
in the decision which
private en¬
fore, of their satisfaction with the
perial Chemical Industries in pro-,
moting the war effort was not
peculiar to it. "I have merely used
our
company
as
an
example/'
treatment'
Lord McGowan stated.
terprise took in 1935?
under
civil
servants,
what
Parliament would
Minister
have
dared
in
the
to
work people and
Or, in the
unlikely event of their daring'to
do
so,-
what chance would
there
loyalty
they
the much
under which
The
of
the
company's
indirectly, there¬
were
accorded
'maligned system
they^work.;
,
aceomplishiTfi€jfe|i:the Im-
have been able to
enterprises
have
"What
we
do, most other,
done according
to their size and character".
Thursday, March 2, 1944
COMMERCIAL & FINANCIAL CHRONICLE.
THE
894
Orders executed
It
/i
SPECIALISTS
j
•
;
I
1
'!
',*
1
1
'
y
1
•
on
'
Announcing
San Francisco
in
Securities
Real Estate
MARKETS IN
TRADING
>
REAL ESTATE
Since
★
'
"''
Exchange
York Curb Exchange
i
Bell Teletype
i
.
.
.
FRED F. FRENCH
Governor
35V2.
Hotel Drake————
BROADWAY
48lA
Hotel---
51 Va
?ark Central
Lombardy
Windemere
—
4
22
that
consid¬
At
Frances
vice-pres¬
idents. Harold
Stamler
secretary
is
and
treasurer.
B. W. Pizzini
& Co., Inc. are
B.
specialists i n
g u a ranteed
3%
at
with
a
additional interest up to
is that the en¬
A noval situation
\
stocks; tire capital stock of the owning
and
operating
corporation,; to¬
minority railroad stocks; dealers
in. leased line, terminal and un¬ gether with the deed to the prop¬
derlying railroad bonds, and par¬ erty, has been placed in escrow
with the trustee, subject to for¬
ticipating distributors.
Mr. Pizzini is first vice-presi¬ feiture in the event of default be¬
is
reduced
to
dent
cf
the
National
Security fore the issue
and
leased
line
railroad
Traders Association.
the
In
Fourth War Loan
ended,
just
drive
Peabody
Kidder,
&
Co., 17 Wall Street, New York
City,
investment
bankers
and
members of the New York Stock
Exchange, led 448 other firms in
the Banking and Investment di¬
vision of the War Finance Com¬
mittee in the drive to get
1,000,000
subscriptions in the area south of
Fulton Street.
More than 6,000
workers
the
participated
financial
district
in carrying
over
that
goal. The Kidder, Peabody organ¬
ization alone accounted for 2,117
totaling
subscriptions
of
Two
the
firm's
$5,377,600,
salesmen
sold
than 400 subscrintions each.
more
current
of
a
requirement that the owners
trustee monthly all
situation in
fee situated
ner
Pitts¬
New York City, together
with the 22-story apartment hotel
brick
request
Co.
•
from
be had
upon
T. J. Feibleman &
'
,
standing
The
thereon.
plot fronts 100 feet on West End
Avenue and 160 feet on West 92nd
The
esting study, which is available to
northeast cor¬
of West End Avenue and 92nd
appreciation, according to
a study prepared by T. J. Feibleman
& Co., 41 Broad St., New
York City.
Copies of this inter¬
ties for
at the
Street,
bonds, offers attractive possibili¬
may
Walter Whyte
Says—
March
Offerings still equalize bids—*
B-
of series
15,
of
bonds
1944-64,. $95,000,-
000; 3% Federal Farm Mortgage
Corp. bonds of 1944-49, $835,000,000; 1% Reconstruction Finance
notes of series W, April 15, $571,-
and
comprises
area
an
of
approximately 16,000 square feet.
building
and
fireproof
623
tains
is
of
steel
construction
rooms
frame,
concrete,
reinforced
and
divided
into
con¬
398
apartments, principally consisting
of one and two rooms.
There is
also
a
dining room on the ground
the building.
One hun¬
floor
of
dred
fifty-six
comprising
of the apartments,
205 -rooms,
are
f
so
Now
Noyes
Harriman,
Roland
E.
D.
Messrs; Harvby
with
;
Gibson,
Jansen
Schiff. While
members of the Club are
Noyes and John M.
many'
with
serving
now
forces, both here
Club
still looks
active Season.
the
armed
and abroad, the
forward to- an
'
.
-
tractidh
Chicago
has
securities,
associated with David
A.
Noyes & Company, 208 South
Salle Stret,> members
York
and U Chicago
of the New
Stock Ex¬
depart,ment to specialize in this class of
changes. He will head a
securities. :
.Mr.
;
the
If
was
recently
j
#
if
if.
truth
were
known,
got something;
both sides have
Unfortunately, you can't make
-
Francoeur
with Brailsford & Co. Prior there¬
Attractive Situations
tion is to sell.
La
become
following
by
money
unless
sides
both
are
agile
you
to
120 Broadway; New
York City, have prepared circu¬
lars on several situations which
Ward & Co.,
he
was
an
officer of
&
Co.
upon
request: v
Traction
Securities, Inc. and was manager
of the traction securities depart¬
Interesting Situation
v
\
Laboratories
Mont
Du
fur¬
Investment Value
&
White
Company,
N. Y.
Mississippi
Analysts To Hear
Building, St. Louis,
On Monday, March 6th, the New
Mo., have prepared an attractive York Society of Security Analysts,
booklet
entitled
"Facts, % Fig¬ Inc. will hear John E. Slater, ex¬
ures
and
Opinions
on
the ecutive vice-president of Ameri¬
Nation's Leading Bank Stocks."
can Export Lines, Inc., on "Amer¬
Contained
in
the
booklet
is
ica's Merchant Marine, Now and
a
survey
of
six bank
stocks
which represent investment op¬ After the War."
On March
portunity, the firm believes, and
8th, Allan B. Du
warrant the time and attention of
Mont, president of the Allan B.
the investor interested in safety
Du Mont Laboratories, Inc., will
of principal, adequate return, and
price
appreciation possibilities. speak" on "A Preview of Tele¬
Valley Trust
Copies
of the booklet,
envelope
size,
are
dealers in reasonable
which is
available
quantity.
to
vision."
.
All
meetings
Broad Street, at
are
held
12:30 p. m.
at
56
More
trials.
those
committed.
-
which
it
is
-
i'f
*
*
-
specifically, to
in
issues
Founders,
Steel
American
bought at 25 is now about 27.
Between the latter figure and
28 stock will meet offerings
be big enough to
If they check the
rise, a reversal in
which may
it.
stop
upward
if
trend—even
porary—is
quite
only
enough
guts,"
would be to
tem¬
If
likely.
showed
the rest of the market
advice
my
disregard offer¬
on the assumption that
general trend would be
enough
to
get
individual
ings
the
stocks through
obstacles. But,
with the market in a I-don't-
know-what-I'm-going
-
to
-
do
position, no such assis¬
tance
is
likely.
I there¬
fore
suggest
taking your,
two
points
or
so
profit
next
at
27
or'
better
^
been
has
action
rail
The
advertised
.
Street
only,
Tomorrow's Markets
operation,
accounts
: The current
situation in Hart¬
."A",;
Company
appears
Merchants
Distilling;
Croweli- ford-Empire
surplus income from the property
interesting according to a memo¬
after deduction of regular operat¬ Collier Publishing; P. R.-Mallory;
General
InstrumentHartford randum, on the company issued by
ing expenses other
than taxes,
Ward & Co., 120 Broadway, New
which must be applied as follows: Empire Co.; Long Bell. Lumber
York City. Hartford-Empire occu¬
Southwest
Lumber; MillsFirst to payment of taxes, then in¬ Co.;
pies the unusual position of being
terest up to 41/4% per annum, and Great American Industries; Kelpossessed of more than $10,000,000
then for sinking fund for the re¬ lett Aircraft; Mid-Continent Air¬
in cash and United States Govern¬
tirement of bonds. Any deficiency lines; Richards, Haskelite; Doyle
ment bonds, but being operated
in the surplus income held by the Machine Tool; Metal & Thermit;
under conditions of receivership
A. E. Staley; Central Electric &
trustee
for
payment
of
fixed
because
of extensive anti-trust
charges must be paid by the com¬ Tel.; Massachusetts Power & Light
litigation.
Copies of the memo¬
pany free and clear of any charge $2 preferred.
randum discussing the situation in
against future earnings.
some
detail may be had from
The
bonds
are
secured by a
Bank Stocks And Their
Ward & Co. upon request.
;%
first mortgage on land owned in
must pay the
burgh Railways System, particu¬
larly certain of the underlying
dealers
.Fresno
enough to follow individual
wriggles; that, in turn, pre¬
ment of Paul H. Davis & Co.
In supposes daily tape watching;
currently offer attractive possi¬ the past he conducted his own in¬ So, instead of discussing the
$1,300,000. •
vestment business, in Chicago,
v;; rails and adding to the preva¬
In addition to this unusual pro¬ bilities, the firm believes. Copies
lent confusion, this column
tection for the bondholders, they of these circulars, on the follow¬
also have the additional protection ing issues, may be had from Ward
will limit itself to the indus¬
building
Pittsburgh Rys. Look Good
The
Sacramento
-
,
Oakland
Monterey
,
Kidder, Peabody Leads
In War Bond Brive
•
to
widely there is
little one can add to it.
Co¬
Treasurer; Mildred V. Marsh of 000,000; 3% Home Owners' Loan incidental with the new highs
McLaughlin, Baird & Reuss, Sec- Corp. bonds, series A, 1944-52, in the group two versions of
reary. Directors elected to serve May 1, $779,000,000.
its future action have fol¬
for a term of two years were:
"The redemption call for the
lowed
in
its
wake.
One
Emily Richards,
Gordon Goff, 1944-46 Treasury bonds was issued
Anne Compton, Marie R. Cam¬ last December."
theory has it that the rails,
bridge, Mildred
Marsh, Regina
having registered new highs,
Hankinson. At this meeting, Jesse
show clearly they are headed
Gordon, founder of the Club, and
h A; Francoeur
for higher levels.
Another,
who is now serving overseas with
the Army, was elected an'Honor¬
equally vociferous, sees noth¬
With David L
ary Member. George I. McKelvey,
ing but headaches ahead and
Jr. of Darby & €0. has consented
..CHICAGO, ILL. — J. A. Fran¬ warns that instead of buying
to serve
coeur,. well
known specialist in
op the Board of Advisors
'all rails now, the proper ac¬
000.
Winthrop Pizzini
tion
Harry Downs & Co., President;
Regina
Hankinson
of
Adolph
Lewisohn, i Vice
President
&
provision
414%,
earnings, permitting. Sinking fund
provision provides for the u^e of
all
excess
earnings
above
the
4%.%. to be used for retirement of
bonds until the issue is reduced
from present $2,565,500 to $1,300,fixed
is
for
Santa Barbara
"The securities, maturity or call
and .amounts outstanding:
1944,.
reelected for the
M. Weller of
were
season:
Interest on the bonds
standpoint.
Crutchfie Id
a
officers
the list, the
on
wires
San Francisco
So market presents stand-off
$515,000,000;
3V4% Treasury bonds of 1944-46, position—Chasing stocks at
April 15, $1,519,000;, %% Treas¬ present prices a poor policyury.
notes
of
series
A-1944, wait for minor setbacks
recent meeting of the Wall June
15, • $416,000,000;
31/4%
Riding Club the following Federal Farm Mortgage Corpora¬
By WALTER WHYTE
Street
Hotel, seems worthy
attention from an income
of some
Exchange
CO. 7-4150
Elect Hew Officers
Windemere
Gur-
:den H a 1 s e y
and
Gale
B.
J.
hotel
last
The
firm,
.
Washington, which added:
type of securities to be
offered in exchange will not be
announced until Thursday.
,
£5
Private
the
"The
1% ' Treasury notes
1937.
in
were
president of
are
private wires
14 Wall St., N.
from
Wall Street Riders
partners
W.
Direct
■
dates
of B. W. Pizzini erably higher now than during
the dissolution of 1937, it is surprising that the en¬
tire list of prices is not similarly
•the firm, and the establishment
of a new firm under the name of higher at the present time.
For instance, gross income of
B. W. Pizzini
the Sherry Netherland Hotel for
&
Co., Inc.,
the six months ending June 30,
with offices at
1937, was $406,000, while for the
55
Broadway,
same period in 1943 the gross in¬
New
York
come was $602,000, yet the bonds
5City. B. Winare selling for less now than they
throp .; Pizzini
'and
-
Press;
Associated
said
IV2
47
r
current earnings are
that
volved in the refunding
and fur¬
nishings
therein contained
are
also subject to the lien of the
mortgage.
M 'Si
only two issues are now above the
1937 highs.
In view of the fact
Corporation
*
of the
nished and the furniture
& Co. announce
new
hotels,
■.
18
comparison indicates
?The
B. W. Pizzini & Go.
is
;
24
Mh'z
29
.35
Astoria
Waldorf
21
,24
,
62Va
44 V2
66¥2
37
33 Mj
Netherland—
Sherry
WOrlh 2-0510
47
64
48V2
3avoy Plaza
24
14
60
George—59
Clinton-—
54
St.
Hotel
NEW YORK 6, N. Y.
the
\A
Feb. 28
of plans- to. refund $4;730,000,000
worth of .securities in an exchange
offering to be made forrpally to¬
day' (March 2). Three Treasury
and four corporate issues are in¬
<$>-
1940.;
1937
week
,
CORP.
SECURITIES
The
\.
9-7371
Treasury Department on
in most cases
Price this
i
y".j L!
u
treasuryRefunding|§
a'banner year
was
*
Now A
*
Announcement was made by
for prices of New York City
the poorest-price year.
It is, therefore, interesting to compare the current prices
various issues together with their prices of 1937 and 1940.
1937
while 1940 was
C. H. TIPTON
ill
>>
Schwabacher;& Co. ©
The Windemere Hotel
Brief Resume Of
Stocks
TUDOR CITY UNITS
,
'V
*
'J "■
'-i ...Eastern, Wat iTime
HAnover 2-2100
Of Hotels
Bond Price Comparison
ANOSrj'J'W'
.
'•,
v:r-
P.M.g'S
Members New York Stock
' :;v,
ALL
%:
5:30
New' York
NY 1-953
Interested In Buying
;
/
to"
A.M.
10
l." FREE & CO.
Tel. BOwling Green
Real Estate Securities
We Are
Exchange
•
'' 1 ;
Association
York 4
*
j
-
York Security Dealers
New
Broad Street, New
41
Incorporated
■
Members
Dlgby 4-4950
& Co.
Seligman, Lubetkin
'
Stock
"
1
.V «•>*•
V*.■■■ ■[:
♦
X9 Rector Street,
AlemberJ New York Slock
N.Y.
Gr,";*'•
FREDERICK
'
Members New
t.
Open from
★
SHASKAN & CO.
40 EXCHANGE PL.,
;V
1929
SECURITIES
★
the formation of
•
;.•
and
(Continued on page 909)-
sit
v
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number .4260
159
895
Trading Markets in
Western Pacific
Chicago & North Western
RAILROAD SECURITIES
B. & 0.4s 44
| Cuba 5s 60 CDs
B. & 0. Cv.
;
4i/2s60
B. & A. 41/4S 78
New
; *
Circular
on
written
I Lehigh
Chgo. Alton 3s 49
Vy. 4s 2003
y
pflugfelder, bampton & rust
Members
MOP5s Various
61
Chgo. Mil. Gary 5s 48
i
C.M.St. Paul 5s 75
New
York
MOP 5
-St.L-.SF 4s 50"
| St. L.SF4y2s78
C.R.L4^s60
Col. & Sou. 4*/2s 80
'
:
'
&
additional
L Arthur Warner & Co.
120
Broadway
*\
COrtlandt 7-9400
New York 5
>
the
cash accruing
excess
and
now
000
is
earmarked for
other
practice of
firing "a
couple of hundred guns" to cele¬
Russian
An American adaptation
of the
a
the
in
victory was recommended
House by Representative
"The
that
Rights
items
maintenance,
increases*
leaving
States
United
should
-
ICC
shows
in
about
total
REORGANIZATION
RAILROAD SECURITIES
ISSUED
WHEN
of
cash
Iowa
••
J-
'•
Bought—Sold—Quoted
-
i'v
Western Pacific R.R. Co.
Securities
these
dealers
Brokers
and
unlisted
securities
general
in
and
in
Sault Ste. Marie
partic¬
Rwy Co..
Denver 8C Rio Grande
Western R.R. Co.
for
With
this
Josephthal&Co.
Members New York Stock' Exchange
and other Exchanges
Pacific Rwy
Co.
Frederic H. Hatch & Co.
request
\
Telephone!
REctor 2-5000
Sutro Bros. &Co.
Members N[ew T or\
120
19 Congress
St.
Telephone!
Sioc\ Exchange
Broadway, New York
Boston 9
LAfayette 4620 "
Telephone REctor 2-7340
,
the
the
this
will
leased from
initial
be
estimates.
added
cash
■
_
'
Paul's
1945 with $29,792,300 that could be utilized for
traffic
and
additional debt retirement. Unless
part of this cash is used to pay off
siderable
revenues
50%
to
this
much
as
Northwest
Pacific
The
will
considerably
expected
expanded,
is
movement
been
the
and
estimated
to amount to several million more
than
past
have
*
income
tax
*
year
been
handled
in
will be
than last and the
Wages
burden
will
be
con¬
siderably
heavier.
Nevertheless,
the company should be able to re¬
Exchange
objection is
taken to pay
be
particularly simple, with
to
equip¬
the new 1st Mortgage 4s
debt, confined
ments,
and
plan.
St. Paul capitalization
new
direct
two
series
There will be
nor
any
of
no
Income
bonds.
divisional liens
secured notes of
near
or
intermediate term maturity. There
will be only $59,515,171
of the
100%.
have
of the
mation
traffic to Pacific
addition, coal requirements in
higher this
49 Wall Street
as
are
to purchase the various new bonds
in the open market after consum¬
will be above the 1943 level.
war
bondholder
off the RFC—it could all be used
that; St.
fact, in petitioning for author¬
ity to finance new equipment
purchases recently the trustees
stated:
* * High ranking offi¬
cers-: in .the transportation divi¬
sions of the Army and Navy, have
the
Stock
new
ing.
1st
Mortgage bonds outstand¬
Considering the markets for
other reorganization 1st
Mortgage
bonds, there is little question but
that
they will be selling at a
premium. In view of this factor,
as
well
of the
is
as
new
the inherent soundness
fixed
expected that
ization
debt
concentrated
There
capitalization, it
any
on
will
Telephone: IIAnover 2-7900
be possible for the new company
'
'
Teletype: NY 1-911
Dealers
Assn.
Broadway, New York, N, Y.
REctor 2-5288
j
Bell
System
Teletype.
NY
1-2480
.
priqes pf 80 and 60, respectively.
If the
for
sum
estimated
as
available
debt
retirement
($29,792,300
the end of this year) were
divided equally between the two
by
issues at the average prices men¬
tioned above it would be possible
to
reduce
the
total
Income
bonds
from
Income
bonds
of
would
outstanding
$108,679,000
to $65,432,000 with an annual sav¬
ing in contingent interest of $1,946,115. This would reduce total
fixed and contingent interest to
$6,904,000 compared with $10,200,000
originally
contemplated
for St. Paul by the ICC.
After
allowing for the regular 40% tax
rate, the potential 'reduction in
cash
power
through utilization
add slightly more
share to the earning
than $1.00 a
of the
preferred stock.
new
Allowing for the potential
duction in charges, earnings
re¬
on
the preferred on the basis of esti¬
mated
possible 1944
operations
would
come
close to $25
(Continued
on
page
a
share.
902)
the Income bonds.
be
outstanding ini¬
tially $57,257,000 of the Series "A"
Income
4]/2S and $51,422,000 of
for charges after depreciation
:
all taxes.
Ill
Secutity
post-reorgan¬
and
port at least $35,000,000 available
Members
York
New
retirement would be
In -1944 fixed
and
contingent
charges under the reorganization
plan will absorb about $9,000,000
New York 5, N. Y.
J.F.Reilly&Co.
company to enter
In
tons
York
and structures.
1943, this would allow the
expected if steps
|
;
It seems safe to assume
the
Members New
way
the RFC loan (around $10,500,000)
prior to reorganization—and con¬
re¬
earnings, as the
reorganization obviously can not
be completed until some time in
In
Vilas & Hickey
All Issues
■
end of
Coast ports is expected to increase
Bond Brokers
Seaboard
some $1,of estimated de¬
earnings a balance
of $19,191,300. Together with the
unassigned excess cash as of the
investments
1944
advised that
s:; —f
excess
preciation of
at* $10,631,000 ) rather
$5,443,000 indicated in
company's
v
betterment fund will be
of the end of fast year, then, may
placed
Colony
Airline
200,000 in
company shows on its balance
Unassigned excess cash as
than
Trade
Also, the maximum additions and
cash
sheet.
from
■
New York 5, N. Y.
year's preferred dividend
requirement
another
$5,608,700.
.
BrbadwaynNew York 5
Street
and the
maintenance.
cash
Chicago 4, 111,
r. r.
Bell Teletype NY 1-897
fund
temporary
year
120
deferred
other
Incorporated
63 Wall
vide for it again out of the cash
CompUte Arbitrage Propositions
on
We
Old
$5,800,000 in
already set
bonds
and
Dodge 4s 1935
estimated 1944
1945.
;
LaSalle St.,
1951
& Ft.
Des Moines
Deducting all of these require¬
ments, there would remain from
the
So.
mid-sum¬
these
as
Exchange
1938
4s
already set aside
there is obviously no need to pro¬
To
Chicago, Rock Island 8C |
figures,
Government
be
specializing
in
Railroad
Reorganizations.'
5s
Central
just
items did not include
and
Minneapolis, St. Paul 8C
Central
Iowa
and
investments
line with the
aside
Reorganization
Stock
Minneapolis & St. Louis 5s 1962
condition is better than indicated
by
231
1934
earmarked
Actually, however, the financial
Called Securities
5s
York
estimates.
mer
Quoted
Minneapolis & St. Louis 4s 1949
taxes, deferred
retroactive w a g e
a
& St. Louis
An¬
as
cash
temporary
—
Broadway, New York 5, N. Y.
("Old" issues)
;
Minneapolis
distribution
was
Sold
—
leading Security and Commodity Exchs.
120
working
funds,
etc.,
estimated $5,443,000 of
an
Bought
New
ST. LOUIS RAILROAD
(Republican, unassigned excess cash. The yearwho
suggested end balance sheet filed with the
victory by firing a
couple of hundred bureaucrats."
Scrip
•
$63,152,000
such
3s, 1950
MEMBERS
MINNEAPOLIS &
Jr.
Hugh D. Scott,
Pennsylvania),
celebrate its
for
Railway
Ernst&Co.
estimated that cash
was
to creditors under the plan.
brate
in^
con¬
summation of the plan.
;
In hearings before the ICC last
it
City
men
by the end of 1943 would amount
to $120,633,378, of which $52,038,-
HARTFORD
To Celebrate Victories
1st
Pacific
period between
summer
TWX-NY.1-1950'
BOSTON - PHILADELPHIA
Would Fire Bureaucrats
Southern
Bell Teletype—NY 1-310
^
have been pointing to the Chicago Milwaukee
gold 5s, 1975j as one" of the most attractively
.valued of the reorganization bonds at.recent, levels.
This opinion
is based not only on the indicated present value of the securities
allocated in the ICC reorganization plan, but,
also, on the anticipated
improvement in the status of these new securities by application of
St;. Paul
;
Seaboard 6s 45
Others Traded
Many rail
/»,;•
Seaboard 5s 31
-
\
Railroad ^Securities
Seaboard 4s 59
C.R.I.4%s52
'
Kansas
Exchange
New York 6
Telephone—DIgby 4-4933
C. R. 1.4s 34
ular
Stock
Broadway
li!0P5#>i::;;;V;y
C. M. St. Paul 5s 2000
A
Securities
<When Issued)
,;::
; MOP 4s 75
,
Chgo. Nw. 4%s 49
/, 11•'
New
request
Den. Rio Grande 4s 36
I Geo. Sou. 5s 45
B. & A. 5s 63
'•
Railway Co.
Capitalization Reduction Possibilities
Series "B" Income 4V2s.
It
to buy these bonds in at
might
Mohawk & Malone
iftg;: Railway
average
zy2s, 2002
i OI
bfuow
v'
Mclaughlin, baird & reuss
bni'
Members New York Stock
Guarantees
We maintain active trading markets in:
SEABOARD 4s/50
Exchange
■.
i''
BROKERAGE
SERVICE
Specializing in Railroad Securities
TEL.
HANOVER
STREET
2-1355
NEW
YORK S
TELETYPE NY
.
•;
'
'•
'
Ap
• /....
SEABOARD-ALL FLORIDA 6s/35
co.
COrtlandt 7-0138
m y, o.
Adams & Peck
63 Wall Street,
specialists in rails
120 broadway
1-1310
* v,
SEABOARD 4s/59
1. h. rothchild &
ONE WALL
:
(Unlisted)
SEABOARD 6s/45
BOND
principal and interest
by New York Central
5
TelfuNY 1-1293
New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY 1-724
Hartford
Thursday, March 2, 1944
COMMERCIAL & FINANCIAL CHRONICLE
THE
896
Slate Draft Boards
Symposium On Question Of
Post-War Price Fixing, Rationing
Get Instructions On
Deferred Registrants
UTILITY PREFERREDS
(Continued from first page)
National Headquarters of Selec¬
immediately upon
Feb. 26 of a memo¬
Service,
tive
receipt
on
randum from President
will
there
be
profiteering with the let¬
callous
down.
Roosevelt
FULTON LEWIS, JR.
of
danger
great
r
News
If the
Lewis B. Hershey,
IIATTON W. SUMNERS
Service, and
Representative in Congress from
Paul V. McNutt, Chairman of the
!• Texas 7 7 ■.;!!!!!!
War Manpower Commission, sent
It is well, of course, to give in¬
the full text of the memorandum
cidental consideration, in fact se¬
to all State Selective Service Di¬
rious consideration, to what we
rectors with the following instruc¬
to
Gen.
Maj.
ESTABLISHED 1879
& Curtis
Securities
Public Utility
The New Depreciation
Dangers Of
Headquarters:.
memorandum
Policy
Appeal
Write-Downs" and has
also published a 92-page brochure
on
"Depreciation Accounting As
Utilities."
Applied to Public
Commission
Financial Rec¬
The Federal Power
vice life' theory
Direct local boards to re¬
view the cases of all registrants'
State.
18 through 37 deferred in
classes 2-A, 2-B, 2-C and'3-C.
In
considering the reclassifications of
such registrants existing regula¬
larger reserves
a time when the
there will come
at
sources
Hatton W. Sumners
self-respect
from
be
the
that
at
wise
in¬
time
that
there
some
to
efforts
into
;he rest
fit
If, however, these reserves were
this
it might be necessary to
continue a skeletonized system of
ciency,
supermen
are
Beyond that period there is no
conceivable reason why either one
works
and
every
they should be dis¬
why
reason
continued.
M. D. THATCHER
President, The First National
Pueblo, Colo.
best
and
The question you
slaves.
Bank*
ask as to the
wisdom of extending
controls be¬
yond the end of the war does not
seem to me subject to a categori¬
cal
answer.
Naturally, I think
LOUIS WARE
Announce¬
continued,
be
should
and
master
there
until
rationing and price control
the first harvest is in. 1
plan. That sort
arrangement
is one
an
where
defi¬
inadequate to make up the
will
their activities
Jr.
victory.
planning, and managing, for a na¬
tion of free people. What these
people mean by "planned econo¬
my" is that somebody will for¬
mulate a plan and the rest of the
people either will be bribed or
forced
Lewis,
should
releaseable immediately upon
be
enough to do the thinking,
Fitch IbIv. Service
—
which
Fulton
and
needs
be
itiative/.
res p 0 n sibility,
as distinguished
notion
ex¬
cess;, of;; any
peacetime
which
individual
and
stored
far in
up,
com¬
will
need
and
goods
shall most
we
quanti¬
meats
have
our
the
ties of canned
mand. The re¬
of
CHICAGO, ILL.
ulous
re¬
will
we
possible"
Army has fab¬
which
sources
Alfred D. Smith With
companies will earn so little that
that little will be an insufficient,
the
and
foodstuff
because
obtain
then
there
I say "bare¬
ly
will
which
sea¬
vest.
n
o
harvest
following har¬
of
conditi
at
lines until the
fact, will de¬
pend upon the
ages
and the pressure
and
larger
ior
some
But
matter
a
end
and,;,that
might
be
a
shortage of
have to do, as
tions, instructions and,,informa¬
doubtful that^
tion will be applied in the light
have lost two-thirds of their value,
of the President's memorandum,
any large number of State Com¬
so
that only one-third may be
missions will
adopt the theory
included in the rate base.
How¬ giving particular attention to reg¬
immediately, as the New York
istrants under 26 years of age in
Commission appears to have done, ever, they have actually deterior¬ view of the President's statement
ated only slightly, are just as good
nevertheless the situation is dan¬
that
agriculture
and
industry
as ever for lower-stage pressures.
should release the younger men
gerous in its possibilities.
Con¬ From a
practical standpoint they
solidated Edison, for example, has
for military service.
Replacement
have been given a new and in¬
a ratio of reserve to
plant of less
schedules should be considered for
definitely prolonged lease on life
than 10%, whereas the NARUC
such revision as may be required
(in connection with the super¬
theory
might require 25%
or
to
comply with the President's
imposed high-pressure unit for the
more.
While Edison is well pro¬
memorandum.
Signed: Maj, Gen,
higher-pressure stages). In fact,
tected by earned surplus to take
Lewis B. Hershey."
he thinks that they may well be
care of any future adjustment, the
"Local boards are expected to
increase in the reserve might sub¬ good for 100 years more, although review all cases with strict appli¬
under the theory they are only
stantially reduce the rate base and
cation of the existing memoranda
good for 10 years. At the end of
and regulations to all deferments,
pave the way for rate reductions.
those 10 years the title will in
Samuel Ferguson, President of
particularly those under 26 years
effect have passed to the con¬
Hartford Electric Light Co., and a
of age, Selective Service Head¬
sumer.
' \
conservative leader in the utility
quarters reported."
Mr.
Ferguson concludes that
industry, recently delivered an ad¬
"under the influence of this 'ser¬
dress on "The Effect of Arbitrary
Property
that
what we shall
boards
in your
local
all
to
of
between
were
to
time,
it is bare¬
ly possible
have
ended.
While it is
reserve.
:
Boards
and
of
theories
new
t shall
same
were
sons,
when this war
I
.;
"Forward text of the President's
depreciation!reserves put forward by
NARUC (National Association of Railway and Utility Commissioners)
were commented on in this column in the Nov. 25 issue.
Since that
time the Public Service Commission of New York has applied the
theory of straight-line depreciation reserves to the Niagara Hudson
Power system, calling for an increase of $65,000,000 in the combined
The
,
'
.1
time
probably have to deal with
will
tions, according to an announce¬
ment
of
the
Selective • Service
Japan
the
about
with Germany
both
war
with
and
Director of Selective
Paine, Webber, Jackson
Commentator,
Washington, D. C.
,
commercial loans and ment is made that Alfred D. Smith
President/ International Minerals
backing of equity is now associated with the Chicago
& Chemical Corp.* Chicago, 111.
they should be abolished promptly,
money.
The companies will thus office of Fitch Investors Serv¬
I am of the Opinion that price but it seems to me doubtful that
try, 1937-1942," summarized the
be unable to finance the plant ex¬ ice, 105 West Adams Street, ' as
five-year progress of the industry
fixing and rationing should be that can be done in every case.
pansions needed by the public and sales manager of their mid-west¬
as follows: '
v.
dropped as soon as possible. I do Some control may prove necessary
the Government will be the only
5-Year
ern territory.
Mr. Smith, who is not
believe, even with demand as for a short period on gasoline and
Increase available source of money. When well
known
in investment anc
certain other items until supplies
it is t0 d ay,-... ■
the Government takes over the banking
circles throughout the that many
Service
rendered (kwh.
can
be built up.
I do not feel
furnishing of funds the conversion country, was previously with the
delivered)
52%
items
competent to comment on the mat¬
would
from preliminary collectivism to National Quotation Bureau serv¬
Ability for service (kw.
ter at this stage.
; \
<!•!,!
get out of line
nationalization
will have taken ing for 18 years as Vice Presidenl
capacity)
-.17
and,' that the
report, "The
in its
Utility Indus¬
of the Electric
ord
coverage for
the
necessary
.
•
'
;
Customers served
(num-
place."
>
'
:
and
permissible re¬
(rate base)—
Maximum
ward
Goodvrio Beach Now Is
IV2
■q/ In 1942, as compared with 1941,
service increased 10% while the
plant) declined
6.7%.
Mr. Ferguson states:
"The report correctly attributes
With Paine, Webber
(Special to The Financial Chronicle)
base /(net
CONN.—Goodwin
HARTFORD,
associated
this greatly disproportionate re¬ with Paine, Webber, Jackson &
ward, with respect to
the in¬ Curtis, 43 Pearl St.
Mr. Beach
creased services rendered, to its was formerly with Brainard, Judd
system of depreciation accounting & Co. Prior thereto he conducted
which has become increasingly ef¬ his own investment business in
fective during the five-year pe¬ Hartford for many years.
riod, culminating in the last year
in
actual
an
decrease
sible earnings in
is
spite of 10% in¬
the
for
time
American
public to realize how far we have
already traveled on the road lead¬
ing to a collectivist state without
their knowledge; and at the very
time when they are waging total
war
with the chief exponent of
National Socialism.
.
.
"The author wholly
Federal
Power
fluential
scenes
succeeded
of
other
in
over
the years have
selling this method
depreciation accounting.
Applying the
theory to his own
.
.
Commission's
SAN
FRANCISCO,
CALIF.—
Co.,
ciated with William R. Staats
155 Montgomery
St. Mr. Hess was
F. Huttcn &
and
Prior thereto he was a part¬
in
Gibbons, Newlands & Hess
an
officer < of
Shaw,
Hooker &
Raymond
Van Vranken Miller
limited part¬
will be admitted to
Wall
Street, New York City, members
of the New York Stock Exfchange;
nership in Cohu & Torrey, 1
on
March 9th. Mr. Miller was for¬
merly chairman of the
Robinson, Miller & Co.,
Board oi
Inc.
Trust Co. of New
offers an attractive situa¬
Guaranty
tion
according to a
bulletin pre¬
pared by Laird, Bissell & Meeds,
120 Broadway, New York City,
members of the New York Stock
Exchange.
Copies of this interest¬
be had upon re¬
ing bulletin may
quest from Laird,
Bissell & Meeds.
DAVE ELMAN
forces
Hobby Lobby Radio Program
regards
prices would
as
b
e
7b
11 e r.
prices
e
Higher
I
war
rent
against
buying. There
is
The
Situations Attractive
Lukens
Steel
common,
Musko¬
Company common and pre¬
ferred, and Central Illinois Elec¬
tric
&
Gas
common
offer at¬
gee
tractive possibilities, according to
memoranda prepared by Buck¬
Street,
New York and Philadelphia
Philadelphia, Pa., members of the
Exchanges.
Copies
of
Stock
these
expected filing of a recap¬
italization by United Gas
price-;
rationing in the post¬
or
I
years.
be neces-'
may
to
sary
level
carry
for
them
a
at which prices
few
belong,
and
when they are
into
peace¬
time
until
kept
artificial
trols
by
low
commerce
con¬
Louis
ad¬
the
sufficiently to
goods has been kept abnormally
low, when there is a surplus there
may be that sudden trend down¬
ward, starting from the artificial
low level, and prices soon get into
the area where business perishes.
hope rationing
ing can be dropped
it
may
that there will
be
more
no
inflation
But
have.
I
certainly
am
against
a
than
already
w e
it
as
steady prac¬
tise*
promptly.
be
.
;
SETII RICHARDS
Chairman, Richards & Blum, Inc.,
/
/v..! '.
Bank,
necessary
I
Elman
Dave
and price fix¬
President, The First National
Scranton, Pa.
While
certain
make
diffi¬
cult.
In other words, where the
selling price for some of our
extend both
can
stabilized
be
Ware
pe¬
riod afterward will also be
I
months
to
price fixing and ra¬
Spokane, Wash.
opinion is that, (/with am¬
ple purchasing power.-which will
be available and
the0 conger of
inflation because of thisr,purchas¬
My
short period of ing power and shortage q/ con¬
would !beV-. al¬
end of the sumer goods, it
stocks, and possibly on the second European phase of the war, yet in most necessary for some tempo¬
preferred according to a study of my opinion that period should be rary controls to be maintained by
the
situation prepared
by Ira made as short as possible, for I the Government until production
develops a balance and the law of
Haupt & Co., Ill Broadway, New consider that there is no place for
either price fixing or rationing in supply and demand can operate
York City, members of the New
this country excepting in time of freely again.
York Stock Exchange, and other
I wish to emphasize the words
extreme stress, and then only to
national exchanges. Copies of this the extent that it affects the na¬ "temporary controls" which should
beneficial
Power
tioning for a very
time
be had upon request tional
memoraj^inaywbe obtained from
study may
the firm upon
from Ira Haupt
request.
Corpor¬
SEC should have a
effect
upon
Electric
and Light first preferred
ation with the
against
-
/\V. $
do feel that it
certain
a
natural
certainly
am
fixing
deter¬
a
are
New York, N/Y./7
-7
.
URBANE A. NOBLE
Interesting Utility
ley Brothers, 1529 Walnut
used for steam turbo¬
generator units for income tax
purposes) the 20-year-old turbines
in the Hartford plant would now
Situation Attractive !
Co.
assumed maximum service life of
'
natural
was
company, Mr.
Ferguson points out that with an
30 years (as
Raymond Miller To Be
Gohu & Torrey Partner
York
Financial Chronicle)
Thomas M. Hess has become asso¬
in¬
did visualize such an even¬
tual result and
(Special to The
ner
working behind the
men
Staff Of Wma R. Sfaals
of
that
.
,.
Guaranty Trust of N. Y.
Thos. 1. less Joins
Co.
Commission
believe
become
previously with E.
.
objective in
mind years ago at the time of the
adoption of its present system of
accounts.
He has, however, good
to
has
' "
justment
acquits the
having had such an
reason
Beach
B.
'
the
of
Manager
permis¬
in service rendered.
crease
"It
in
General
Chicago office.
15
ber)
rate
:
,
& Co.
•
*
way.
following
economy
"
the
in a very pointed
be
released
as
soon as
tion is well in hand.
the situa¬
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4260
;;|:|j::>,^^pAuL s. dick^^^v
Associate Professor of Economics,
University of Nebraska,
Lincoln Neb./
,
UnitedStates
National Bank, Portland, Ore.
The
President,
*'
To my
mind, there are excellent
Should price fixing and ration¬ grounds for fearing that Govern¬
ing be extended into the post-war ment controls of .various kinds
period? ' I think both should be will be applied during the podt./.
war period as
continued during that limited con.
t
well
version period
>
;
when the
war
vl
.■•savings of con¬
sumers, in ad¬
this,
comes,
ar
stocked wit
goods,
K.
M.
ing
be
may
to
shorter
a
In
the
period
general
ration¬
discontinued earl¬
ier-/.than
tinuance
trols?
tained
and
1
war.
period
Can
the
rationing
rationing is
if
price controls
beeri
las
;■
P
r
i
c e
)ls would
curb
to
as
inflation-/
...v.
feared, for
should incomes fall sharply after
Paul
the war savings
might be pru¬
dently conserved. But I believe country
con¬
are
H
should be
we
himself.
ary
.
s.
Dick
trend.
Ifj
^em^
probable,- this
as now
>
is
the
National
will
Congress
sibility in this matter; but I think
the Government aiso has the re¬
sponsibility of he 1 ping him,
through rationing and price con¬
trols, to get real values in mer¬
chandise
when
cashed.'
f
his
bonds
are
ftll^he^vmoney^'-availabie should
into
go
chase
circulation'
of
,
iq
limited
a
the
It
pur¬
quantity
goods,/prices could be bid
rapidly.
appears
trol
until
up very
con¬
the
supply of goods is
large to meet ordi¬
sufficiently
nary market demands.
that
of
necessary,
therefore, to maintain price
this
be
These restrictions, analagous to
while the
necessary
and
they rightfully belong without uni
necessary delay.
For the reasons explained only,
I
would favor the continuance
temporarily of price fixing arid
rationing. When conditions ren¬
dering these
1
letting the clutch in easily,
be
may
disposal of Governmentsurpluses at the end of the
Obviously,
and
the
controls, I think if
is too early to hazard a guess.
HON. C. DOUGLASS BUCK
courses
have
It is
hoped
I
can't
that
problems
HON.
SAM H. JONES
for
that I
say
am
ounce
its
normal
of life is by
way
confusion and
it retraces its steps.
as
to
have
con
for
t i
disorder
N. HOGG
Corn
Exchange
Trust
&
the
Co.
Philadelphia, Pa.
will
not
economic
country for
a
cycles of trade
great
many
years,
conditions the
not too dif¬
were
ficult to anticipate. All those old
Dr.
11,
cessive
Any
conditions.
post-war
one
who
statement
makes
about
positive
a
of
any
things today is hazarding
What
constitutes
a
these
a guess.
sound
do¬
mestic economy includes so many
variables because of the
war
I think the solution will be
one,
but
that
should
tion
of
a
free
process
a
that
slow
nevertheless
insure the
Dr.
J.
A. Fitzgerald.
end
these
to
date
controls
should
commensurate
be
be
curtailed
or
discontinued
by
commodity groups after the war.
This should be done in those commoditiesvwhich evidence
quate supply. As
an
ade¬
the war
the government should be
perpetua¬
enterprise.
soon as
gasoline and the question, of
ra¬
tioning these can be determined
only by the supply that can be
made available at that
time.
The
rationing of metals could be re¬
laxed within a
relatively short
time.
The
rationing oL canned
meats
and
canned
vegetables
should
after
not
be
discontinued
until
the
supply available for
consumption is adequate to meet
the needs. This could not be until
after
crop
the
of
harvesting of the
vegetables and an
first
even
35% of the
converted into ferment¬
So you see the
Alcoholic Bever¬
Industry is not only devoting
all of its distilling facilities to the
As to whether
not it would
or
be wise to extend price
fixing and
trols
conduce rationing into the post-war period;
I am opposed to this system for
to collectivism
con¬
hence
and
to
the
to
that it has
reason
break down
our
a.
high protein/
age
manufacture of wartime alcohol to
help win the War, but is simul¬
taneously producing food to help
win the peace.
tendency
system of in¬
Modern
science
has
not
shied
convinced that
from the distilling business.
Experiments and research are con¬
stantly carried on by men in white,
and several other very important
products, as a result of recovery
and conversion, will reveal them¬
selves from time to time. They will
the
play important parts in the every¬
the
de¬
same
tend
gree
to
ob i iter ate
democratic ins
t i tut i
o ns.
I
Also
am
dividual
important
our
which is so
the well-being of
much, however, de¬
enterprise,
to
nation.
So
pends upon the amount we do
spend in the assistance of other
nations. One can hardly be alto¬
gether opposed to some help along
greatest
that line but the extravagances of
economic and
cultural bene¬ systems/that have /already been
which
zens
can
citi¬
can
L.
to
continued
may
after
require
be fixing
other
and
the
countries,
world
if
in
King
where, individual
only
demo¬
a
the
fullest
the
play
day lives of our people.
I will tell you more about some
of these things in another article.
.
war,
MARK MERIT
system of price
rationing to prevent
severe
so
with
consistent
away
some
inflation. If the people are
opposed to both of these sys¬
cratic
society tems, in my opinion it would be
bad politics to, in a large way,
enterprise has
achieved
Frank
a
extended
be chaos then'it would seem that
nec¬
was
cattle ration, with a
content.
President, The Kanawha Valley
Bank, Charleston; W. Va.
pos¬
Jones
estimated that about
spent grain, is recoverable. In the
distillation process only the starchy
JOHN L. DICKINSON
Gov¬
ernment
of Schenley Distillers Corp,
/FREE—A booklet containing reprints
of earlier articles in this series will be
sent you on request. Send, a post-card to
me
care of Schenley
Distillers Corp.,
350 Fifth Avenue, New York 1, N, Y.
good.
It is in this light that
common
sound
policy
indicates
tory
shows
that
chaos,
Another matter which
taken
the
con¬
tinuance of such controls; for his¬
and
which
into
might be
consideration,
over
have no control, is the
large amount of money the Gov¬
we
not
ernment is borrowing - from
its
order, is the most fertile ground
for dictatorship and authoritarian people that is in fact payable upon
demand and will be used in aid of
government. Such controls as are
retained, should
be
dispensed
landmarks have been swept away, is over
with- as /rapidly as it develops
of course, by the war, and it is able to turn loose considerable they
are
no
longer
required;
very difficult to chart a course quantities of automobile tires and Perhaps the best way to achieve
covering
mand.
with
H.
Following the processes of fermen¬
tation and distillation of grain, it is
as "stillage";
this stillage is con¬
centrated and dried, and then is,
converted into a poultry and dairy-;
'-/fP
brought about at the earliest
Sam
following the trend general economic conditions:
1. Rationing.
Rationing should
development in this
and under normal
as
extend it, and therefore we can
only prevent it or soften it by the
opposition of the people.
we should
In these days, when everything
examine the practical wisdom of
turns on the question of politics,
extending economic controls into
it is necessary to bring politics
the post-war period. If the alter¬
into every question of life.
native to limited controls were to
Hon.
I have been
of
Nov."
post
essarily have
very much effect on the continu¬
ation of a free enterprise system.
I do believe, of course, that an
•,%-
Douglas Buck
Bank
advanced by
the
1943,
issue of the "Chronicle," that ex¬
rationing
period
prised when I told him, and that
made me think that, perhaps, you,
too, might be interested in this
subject.
proteins not
only remain in concentrated fonn
but, in addition, valuable vitamins
have been added during the fermentation process. These are in
ihe form of a residue which is known
be
match the de¬
agreement
society
give; its
into
involved
should
sible
infla-
tion.
National
thesis
in
people.
questions
war.
dan¬
gerous
ALBERT
the
complete
of
guard
friend asked me:
mal times, and war alcohol in these
critical days. He was qrnte sur¬
*
in
am
ican
we
to
are
Call
Angeles, Calif.*
fits
and
if
a
something about the
"recoveries" from the grain used in I
the distillation of whiskey in nor¬
which
reasonably
Vice-President,
fornia Bank, Los
extending
price fixing
against
President,
Executive
dem¬
tilities
day when
tell him
to
supplies
for-f
FRANK L. KING
for the Amer¬
ces¬
♦''
as
a
en¬
sation of hos¬
_
one
of
means
-
The
1
:y -
fast
enterprise. No
t other /; system
vis
thinkable
fW:m
v ;. •" A
one
individual
of
post¬
of the sights
"r>:"A»*.>♦•'♦.
T thought of that experience the
other
period.
•
by
best
preventing the possibility of
"planned economy."
and
our
the
one
,
eliminated
the
as
other
ever
ocratic system
n u e
the
of
into
war
'•
.
prise
help main¬
tain
sometime
after
rea¬
h-:
of the most inter¬
esting hours with a gentleman who i
guided us through great pig-pens
and slaughter houses. I remember
him saying at the conclusion of his
lecture, "We don't waste a thing
in this pig department. We use
everything except the squeal." / >
/we like
not, the waging of modern
total war by a democracy or a
dictatorship, necessarily has to¬
talitarian aspects to it. And the
only way a democracy can return
avoiding
■>.
The valuable fats and
at
command
my
very
fixing
will
Vice
ITT-
We spent one
ties
strength
that
price
.
ergy
period
lieve
C.
one.) Really it is
of America.
or
to
stock-yards in Chicago. I
forget that visit for a
never
numberofreasons. (Youguess;
able sugar by the addition of malt, I
has been taken away from the grain. ■
In
among those who
will use every
to
production of
it possible for
obtain food at
prices;
Hauhart
With/ reference to the develop¬
a government controlled
economy after, the war, I want; to
see
a
make
ment of
after the war,
but I do be¬
'■
shall
The commodi¬
with
Governor of Louisiana
neces¬
brief
■■■■■?.•; .>
Years ago, when quite a lad, I
a visit with my Dad to the ?
re¬
words;
here in Louisiana we are doing
a
lot of economic planning for
the development of private enter¬
sonable
I
unless it
sary,
will
consumers to
.
rationing
will be
be
goods
the
necessary
passed, both should imme¬
diately be discontinued.
U. S. Senator from Delaware
m
Recovery
solu|jon,'.\'of
related
Unfortunately, whether
it
period will not be too
that
national
economy
is being shifted into
civilian gear, but not afterward.
As to the precise nature and
extent of these
This is number twenty-one of a scries.
SCHENLEY, DISTILLERS CORP., NEW YORK
- -
these
time, in this space,
there will appear an .article which we
hope
will be of interest to our fellow A mcricans.
feed and clothe the
on
the people have
policy should
not allow this investment to vanish been deprived ofrinherent :?right$
in an inflationary scramble for and powers largely on account of
These
goods.
It is true that the indi¬ war conditions.
prerogaj
vidual consumer has some respon¬ tives should be returned to where
-
NOTE—From time to
re¬
re¬
called upon to
long.
DR. J. ANDERSON FITZGERALD
people of cer¬
guard against
I am sure you will be interested
excessive and premature consumer tain belligerent nations for a pe¬
to know that here in Louisiana Dean, School of Business Admin¬
(and perhaps industrial) purchas¬ riod following* the end of the war;
istration, The University of
we
are
doing a lot of economic
ing not only to the general end the continuance of rationing is
Texas, Austin, Texas
planning for the purpose of em*
of cushioning our
unavoidable.
When the
economy from almost
At the pres¬
abling private enterprise to de¬
an
inflationary jolt, but for the threat of inflation/ has passed and
velop more fully the natural / re¬ ent time it.
specific purpose of preventing the when the citizens of the warring
sources of this state and to there¬
appears to me
dissipation of war savings held in nations have demonstrated their
by maintain the free enterprise that
cash and in bonds,
price fix¬
The citizen ability to provide food and cloth¬
system. It is expected that the de¬
ing and ration¬
buying war bonds is told of the ing for themselves, these controls
velopment. of the resources will
should be immediately removed, f
back-log of purchasing power he
ing will need
provide, work for all labor avail-/
is
to be projected
During the past few years both
patriotically storing " up for
able, and
that
ADVERTISEMENT
con¬
moved, what is likely to be the
effect
on
our
price
structure?
Closely tied in with these issues
owned
war
without
some
And
price 'controls
but
should be kept up until there is a
relatively normal flow of goods
in the particular group concerned.
2. Price Fixing.
It would ap¬
pear desirable- to • maintain price
of
the other.
on
done
of
after the
have
some
quantities
in
time.
be
great
of money may
not be so ex-
Arndt
of
this
made
my
plos ive
market
civilian needs
a cer¬
view, this rush
g&iiil
considerable
un¬
able to return
was
preventing excess quires forethought and
planning
prices resulting from inflationary which in turn
implies a positive
tendencies in the money market:
course
of action. '>£ The
p r i c ef fixing
important
The- enormous
financing that has point, it seems to me, is that we
and
rationing been carried on
by the govern¬ must differentiate between
should be con4
thb
ment for war purposes is
leaving post-war adjustment
tinned for an
period and
the/ banks filled with deposits. If
what we are adjusting to.
indefinite pe-i
in t
In
my
Army
tain amount of
iinadeq
peace.
is
irig that
markets
;/ the
it
less the
•pei)ings into the post
personal ieel-r
as a
means
urrerit
flowing
Not-
withstanding
dition to their
c
for the
as
P.duration.
;longer period for the meats
this would be to have the admin-:
istration of these controls actively
inflation after the war is over.
D. Y.
;
PROCTOR
President, Broadway National
Bank, Nashville, Tenn.
With respect to price fixing and
participated in by representative rationing in the post-war period,
business, men, thus insuring con¬ I
have
given this considerable
sideration for their judgments as thought
and believe that both
to when regulation Could be safely should be continued for six months
after the end of the war. In the
dropped.
?
.-From
one
of
diate
the
the
viewpoint, event ceiling prices were removed,
pressing imme¬ some things would be at a price
problems will be far beyond the person of average
practical
most
post-war
the apportionment of our produc¬
tion "between
the
rehabilitation
income.
requirements
out within
on
the
one
of
war-torn
hand
and
our
areas
own
Evaluator—Comparison
Butler-Huff & Co. of California,
210
West
Seventh
Street; Los
Angeles, Calif., have issued their
Insurance and Bank Stock Evalu¬
ator
a
for January 1944 containing
comparative analysis of 82 in¬
companies (figures to De¬
31, 1942) and 38 Banks,
figures to" December 31st, 1943.
Copies of the Evaluator and an
interesting - circular
entitled
"Banking: Foremost Growth In¬
dustry" may be had from Butlersurance
cember
Huff & Co. upon request.
EDWARD
KRONVALL
President, Springfield Safe Deposit
& Trust Co., Springfield, Mass.
I feel that both
rationing
tended for
might
a
price fixing and
wisely be ex¬
few months into the
However, I believe that post-war period, but believe that
conditions
would
Insurance and Bank Stock
would
be
straightened
six months and prices
adjust themselves.
further regimentation would
seriously retard any forward surge
any
in business.
THE
898
Lukens
CLEARANCE
in:
We maintain markets
SteeLfgpSJ;
Common
to
& Gas
"
414% Bonds
■
;■
Memos
Inquiries Invited
THE PENNSYLVANIA
request
on
For Insurances
Members
Price to
Bell Teletype —
1421
Member
Member
PH 265
Federal Reserve
System'
,
Federal; Deposit Insurance Corp,
yield 1.09%
A. Webster Dougherty &
PHILADELPHIA
Philadelphia 2, Pa.
St„
COMPANY
Lives and Granting Annuities
15th and Chestnut Streets
Philadelphia Stock Exchange
York Stock Exchange
Members New
1529 Walnut
on
:
Due March 1, 1952
Common
*
"
delaware county, penna.
of the best and the cost is very moderate.
Our facilities are
Pfd.
Central Illinois Electric
experi¬
security
transactions.
Muskogee Company
Common &
offer
$15,000
FACILITIES
Brokers and Security Dealers an
enced department for handling theclearance of
We
Thursday, March 2, 1944
COMMERCIAL & FINANCIAL CHRONICLE
Philadelphia
New York
BOwling Green 9-8184
Teletype
Rittenhouse 2580
PH 70
i
Co.
Municipal Bonds
CHESTNUT STREET : PHILADELPHIA
>fN. Y. WH 3-7253
Phila. RIT 4488
Pennsylvania Brevities
Philadelphia Bank Stocks
Bank
Nat. Bk. & Tr. Co.
Fidelity-Phila. Trust Co.
Central-Penn National
Corn Exchange
Girard Trust Co.
Lives etc.
Penna. Co. for Ins. on
Philadelphia National Bank
Provident Trust Co.
Co.
Phila. Transportation
3-6s
.
2039, Pfd. & Common
H.N.NASH&CO.
Chestnut Street,
Philadelphia 2
Phone
1421
Phila
New York Phone
Locust 1477'
' ,
,
HAnover
Teletype PH 257
'
2-2280
Amer. Insulator
Autocar Com. &
Pfd.
Delaware Pr. & Lt. Common
Lehigh Valley Transit 5s 1960
Southwest Pub. Serv. Com.
Citizens Utilities 3s, & Com.
1500 Walnut
St., Philadelphia 2
Phone;;
Teletype
PH
16
N. Y. Phone
Penny packer 8328
CAnal 6-4265
Omer Joins Staff Of
Akron/ Canton & Youngstown
Hemphill, Noyes Co.
Issued
BYz» & 6s and When
Hemphill,
Noyes
&
Co.,
15
Street, New York City,
members of the New York Stock
Broad
GERSTLEY, SUNSTEIN Er CO
213 So. Broad
St. Philadelphia 7, Pa.
Bel! System Tel.
York Phone
New
PHLA 591
WUitehall 4-2300
Bayway Terminal
Bought
Sold
r—
—
Quoted
Paul
KENNEDY AND CO
changes,
Stock Exchange
Land Title Building
PHILADELPHIA
Telephone
and other leading ex¬
have announced
that
associ¬
ated with them ,as counsel. Mr.
Omer was formerly a member of
the law firm of Satterlee & Warfield of New York. He has special¬
Exchange
1923
Established
Members Philadelphia
Paul T. Omer has become
,
PA.
10,
Rittenhouse 3940
Bell System
Teletype PH 380
ized
Named To Fed. Reserve
Alfred H.
Reserve
Federal
has
delphia,
and
Phila¬
of
Bank
been
member
nate
i
Williams, President of
named
alter¬
Hugh
Leach,
Richmond, has been elected rep¬
resentative
banks
and
of
of
Federal
Boston,
Richmond
on
Reserve
Philadelphia
the
market
Federal
committee
Reserve
open
for year
beginning March 1;
for
many
years
in financial
original staff
member of the Securities and Ex¬
law
Open Market Group
T. Omer
and
was
an
change Commission,
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4260
159
Changes In Income And Corporation Taxes :
In New Tax Law; Higher Taxes On Luxuries
Active Markets in:
features
essential
in the tax bill which became
law
a
of
on
we
City, County and State Bonds in Pennsylvania
it
will
tax
experts
es¬
return
$2,315,000,year, raising the Treasury's
annual income to over $42,000,000,000, but President Roosevelt
disputed the prospective return.
000
a
"Salient provisions of the
new
law include:
"1.
Increases
in
individual
in¬
taxes
additional
elimination of the earned income
credit and removal of deductions
for excise taxes
paid out.
"2. A boost in the corporation
excess
profits tax from 90% to
95%, to yield $502,100,000 more.
"3. Higher
excises
on
items
classified
as
luxuries
another
—
$1,051,300,000.
"Playboy
and
householder,
socialite and factory hand are
affected by the new excise load.
The tax on cabaret charges jumps
from 5% to 30%, Cosmetics, furs,
luggage and most jewelry will
bear
on
an
the way
for contractors to appeal to the
courts from renegotiations
they
consider
phone service goes from 10%
set
or
ments:
much
as
if he deems it
six
as
necessary.
"7. Labor
unions, farm coopera¬
organizations are
required to make annual financial
statements to the Treasury, al¬
tives and other
though
on
Cite Lt, J. E.
Oagle;
John HisveenAssociate
CHICAGO, ILL. — Lt. Jackson
E. Cagle, USNR, general counsel
of John Nuveen & Co., municipal
to
bond house, now on leave
has received
sence,
a
of ab¬
commenda-
officer of the United States
days hence, must carry three-cent
affect
C.
O.
insured
U.
Guard
on
board
a
S.
merchantman in action with hos¬
rather than two-cent stamps.
Air
mail charges rise from six cents
and
Navy
Armed
The in-town letters, beginning 30
tile forces
Other
during
convoy
opera¬
tions."
D, regis¬
mail,
and
Lt. Cagle
volunteered for serv¬
ice in November,
money-order fees.
Hook
aviation
898)
page
The
are
50%
finding
powerful
than
year
ended
1943, Lukens Steel Co.
purchased $634,000 of its 4%%
debentures,
leaving
$1,566,000
publicly outstanding as of that
date.
r
40 %
the
below
indicated
ws
Samuel K. Phillips & Co.
Members Philadelphia Stock Exchange
Packard
Bldg., Philadelphia 2
Teletype
PH
N. Y. Phone
REctor
375
2-0040
Puget Sound Power
values
of securities to be received in
re¬
& Light
organization. By the time holders
publicly-held issues of existing issues actually receive
of Pittsburgh Railways Co. sys¬ new
securities, prices are expected
tem are expecting that arrange¬ to be
considerably above current
ments will presently be concluded levels.
An important considera¬
Stock
Common
series of discussions with tion, hot
always given full market
Philadelphia Company, trac¬ recognition, is the fact that most
tion system parent, the objective roads
emerge
from bankruptcy
being a dismissal of bankruptcy with a large amount of cash on
proceedings.
It is probable that hand and that this cash is fre¬
a prominent Philadelphia banking
quently applied to the, reduction
house
will assume the role of of the new debt,
"negotiator"
between
security
holders and the parent company.
The $6,000,000
first mortgage
a
the
Much
preliminary work
has
al¬
of record only and is neither an offer,
of these securities.
offering is made only by the Prospectus.
This advertisement appears as a matter
BOENNING & CO.
1606 Walnut
to N.
Y. C.
COrtlandt 7-1202
outstanding against Philah i a' s Bellevue - Stratford
Hotel, past due since 1935 and in
default
of
interest
since
1933,
present an interesting and timely
speculative
opportunity.
Bond¬
e
1 p
are
the sole
now
a
Pennsylvania
and New
law
the. court having
settlement agreement
Dolphin & Co.
Fidelity Philadelphia Trust Building
PHILADELPHIA 9
Telephones:
Philadelphia—-Pennypacker 4646
May 21, 1943. The act pro¬
penalties
on
New
for abatement of
vides
Jersey
Municipal Bonds
owners
vania Tax Abatement Act became
NOT A NEW ISSUE
PH 30
.
Private Phone
eliminating all other claims ex¬
cept accrued unpaid taxes, penal¬
ties and interest.
Reorganization
has been delayed because of de¬
linquent taxes.
A> new Pennsyl¬
solicitation of offers to buy any
St., Philadelphia 3
Pennypacker 8200
bonds
d
confirmed
The
1500 Walnut St. 6-1950
Pennsylvania dealers,
despite
advances, are still heavy
buyers of reorganization rails. A
study reveals that most issues are
yet available at prices 10% to
of the property,
nor a
Standard Ice 2-6-1957
recent
holders
sell
Pfd, & Common
Owners of
for
:•
Strawbridge & Clothier
dealer accept¬
ance
in. Pennsylvania.
An lncial
dividend on the Class "A" shares
100-
9,
r
wider
sistently seeks to expand its civiloctane test fuel; 19% increase in ian goods production.
At present
wells drilled; delivery of 73 huge approximately 60 % of company's
business is non-military.
sea-going ships.
more
For Dealers.
to
Common
preferred. and Class "A"
of Botany
Worsted Mills
stocks
PITTSBURGH
Harrisburg Bridge Co.
l>
gasoline
production is expected in April.
Although
of aviation gasoline; new high in government orders for worsteds
refinery crude runs to stills; de¬ nave
substantially
augmented
velopment of super aviation fuel gross sales, the management con¬
ready been accomplished.
1942.
•
almost tripled
tax is imposed."
no
postal rates
in
categories of mail—$96,- | tion from the Secretary of the
| Navy for "outstanding skill and
more,
The out-of-town devotion to
duty as commanding
increases
Marcus
During the fiscal
liquor.
eight cents per ounce.
company's 1943 achieve¬
Completion of $13,000,000
plant;
Oct.
letter rate remains at three cents.
tered
backward
months
Increased
900,000
to
for
date
termination
the
as
1942, J. Howard Pew, President of
Sun Oil Co., lists the following
among
renegotiating war contracts for
recovery ; of
excessive
profits,
although the President is given
an option to .set the date forward
Beer and wine taxes go up,
along with those
"4.
(Continued from
31 is
Next Dec.
unfair.
Exchange
Street, Philadelphia
telephone wires to New York and Baltimore
Pennsylvania Brevities
including
law,
a
several
Private
employer and employee.
"6. Numerous changes become
effective
in
the war contracts
20% sales tax.
The rate
railroad tickets and local tele¬
15%.
of
renegotiation
Co.
&
Stock
Investment Securities
1518 Locust
1944, instead of rising
automatically to 2% each against
rest
Pittsburgh
Rambo, Keen, Close & Kerner, Inc.
social
The
amendment which opens
for 1944, to yield an
$664,900,000.
There is
no general rate
increase, the new
revenue
being derived• through
come
Members
security payroll
tax rate is frozen at 1% for the
"5.
"Congressional
timate
Reed, Lear
From the advices^
quote:
NEW YORK CITY
Delaware River Joint Com. 2.70% 1973
the new legislation embodied
Feb. 23, Associated Press Wash¬
ington advices from Feb. 25 given in the New York "Journal oi:
Commerce,"'noted that the legislation increases the income tax take
from individuals and business concerns, raises some postal rates, and
increases taxes on liquor, furs, cosmetics and many other items, ef¬
fective April 1.
DIRECT PRIVATE WIRE
•
Commonwealth of Penna. Turnpike Rev. 3%s, 1968
Changes in War Contracts Renegotiation Law
Reporting
ggg
York—HAnover
Bell System
2-9369
Teletype—PH 299
and interest on the condition that
the
69,945 Shares
delinquent
and
penalty)
a
over
current taxes
pay
back
pay
(without
five-year period
taxes
in annual installments.
Majestic Radio & Television Corporation
qualified
under
the
Abatement Act by paying its 1943
assessment in full and making
the
first
ments
Common Slock
of
on
installment
its
Insurance stocks, and also in spe¬
cial Public Utility and
pay¬
largely
to
increased
J
.the hotel can complete a reorgan-;
ization plan along the lines earl-:
ier suggested. This plan provides'
creation
the
for
liquidating
share
the
for
mortgage
of
ta^es
Industrial
situations.
Oct. 28, 1943.
Owing
markets in
leading New York Bank and
the
earnings, it is now thought that j
One Cent Par Value
Price $3,375 per
We maintain primary
Bellevue-
Stratford
a
$650,000
of
purpose
the
and
ex
change of old bonds for stock on a
of 10 shares of stock for
hendricks & eastwood
INCORPORATED
Established 1921
BLDG.,
PACKARD
Rittenhouse
PHILADELPHIA
1332
Race 1785
Direct
New York
BArclay 7-3539
private wire to Laird, BisseU
basis
each $1,000
bond.
Earnings for the
1843 showed
Copies of the Prospectus may be obtained from the undersigned'»■
and
net of
and
terest
gross
depreciation.
comparable
were
of $1,225,5
rimary Markets in all
$192,793, before
figures
$917,322
gross
for
and
in¬
The
1942
$42,-
philadelphia
bank stocks
and
648 net.
philadelphia
&
Company
Kobbe, Gearhart
Larry F. Hardy has been elected
INCORPORATED
Members Neiv York
r
45
telephone
REctor 2-3600
NASSAU
transportation co.
vice-president in charge of Home
Security Dealers Association
STREET,
NEW
philadelphia telephone
Enterprise 6015
YORK
securities
Radio Division of Philco Corp.
5
Henry
bell teletype
new york
1-576
elected,
H.
Ziesling
has
been
vice-president of Mid vale
Co., in charge of sales,, to succeed
Stuart
Hazelwood
AffApfivp
Anril
1
who
resigned
*
F. J. MORRISSEY & CO.
1510
Chestnut
Rittenhouse
Street,
8500
Philadelphia 2
PH
279
New York Phone—WHitehall 4-1234
Boston
Phone—Enterprise
2050
COMMERCIAL & FINANCIAL'CHRONICLE
THE
900
.
PRIMARY MARKETS
"INSURANCE STOCKS |
67
■
KUBbard
3-0783
'
,
135
Square
Office
0650
eating the
LONDON OFFICES:;
grburid lor^itk rfe^
'
'
a
3 Bishopsgalt, E. C. 2^
? \
PORTLAND,
7008
Enterprise
-
Smithfield, E. C. " /
81 West
"
'yic'49 '[Charing Cross, Si W* l\;
good
.reasc^
one;.■
I,"
-AdYq-;
revocation!of^a^ad^ruleJtMiftM
iri:
NSSBltio^/sound; policy.; ";.v
Burlington Gardens, W,' 1
-
-
64 Ncu) Bond'Street, W. I
'
v
the violation of thei
TELEPHONES TO
<5011 f'
HEAD' OFFICE—Edinburgh
Branches' throughout Scotland
members.,.;-^, ^v,
CG-105
CONNECTING: NEW YORK, BOSTON, CHICAGO,
LOS ANGELES, SAN FRANCISCO AND SEATTLE
*
Feb. 8;:
,
That's •
ST, ' LOUIS,
Inc6rporated' by;R6yal 'Charter 11727
,,
to 'submit
SYSTEM
WIRE
Royal Bank of Scotland
vv:
%\ rt4^|,or,i;as'Ah;
petitionedthe,
alternative! hold a
announced-itsintehtions^
quest, the
Chicago 8
La Salle Street
FRanklin 7535 ;
.
Security^ Dealers Association; °n
1944
S.
I:'.
1-2875
NY
■/
9
Boston
Post
10
Street
Wall
WHitehall
PRIVATE
v"\
5
(ContinUedA£r^vpaget89p,i)(yu
,
The New York
*
Huff, Geyer & Hecht
New York
a*
NASD HeadachesfQntimies
ft' ;Vft-
\\r\>*??ft" J-wr.:IV-"ft '•••iftl'v
•' \
Thursday, March 2, 1944
*
TOTAL ASSETS
wide^re^d|^ppsition is based iupon hddi|
£108,171,956
•
The "5% spread
philosophy^/ were
would fe; no
Associated. Banks: ;. *<y
threatft-^lprivatellif^
Williams Deacon's' Ba|ik; Ltd..
I Bank and Insurance Slocks
and
philosophy is but^an'opii^n^pf ^ci^rse ofo
!/I, Glyn Mills & Cb. ;
By E. A. VAN DEUSEN
followed,. or |refraine&^^
ivary;:with I indi|
viduals; and are Lnotlfbree&ly^imp
Th'eir; charm'for/
i
Ttis Week—Insurance Stocks
and coihfort: to man, .lies|irr|their| beings purely voluntaryw Australia and New Zealand
'This week it is possible to present an analysis of the; principal
Operating figures of.nine.leading fire and marine insurance •corn-' When a" ^philosophy"iBbeomes^ai|rule!oL enforcement, /and
one unlawfully; imposed Cat f that | to
panies, as reported in their 1943 ?
r-1 r1- _
continue .to call it a tmm&ANR OF M
annual statements.; For.the sake'
NEW SOUTH WALES
"philosophy';' is as arrogant|as litfis Talse. ;
'
of
comparison, results for 1942
;
^ESTABLISHED 1817)
Fundamentally,--dealers ;belieye\there„are serious impliv
figured on the same basis are also
Guaranty
cations
Capital
shown. "
It will be, observed in
rinv; the: Tulb; •^•..ITt|ls|anothVr ?step^iri* that* creeping, I Paid-Up -Fund. :ii:__:_->_£8,780,000
Reserve
6,150,000
Trust Co. of
Table I that five companies, viz.,
paralysis ;with'which hufeaiicYatsihave-been .shackling free t Reserve Liability of J^rop.^, 8,780,000
Aetna, Fire Association, Great
5
I £23,710,000
enterprise;. Nor is; opposition a|m^
security field
American, Pacific and Phoenix,
alone;
yBusiness- generally must|andl will, realize that such .'"Aggregate Assets 30th
show net operating profits for 1943
Sept.', 1943'
1—2—£187,413,762
substantially in excess of those
perverted doctrine is a malignancy that iWill: spread rapidly ;
Bulletin
Request
Enterprise
HARTFORD,
.
»
PROVIDENCE,«Enterprise 7008
J
^
-
However, the
tional
and
more
fundamental,, grounds.
\
.
^
■
v
.
>
i
•
.
'
-
y
-
'
;
,
on
of
while three
1942,
Alliance, Jersey
Springfield, show substan¬
American
viz.,
and
tial
shows
Shippers,
and
York
(20
in total net
share
A.
L.
Net Uhd.
(Fed.
Taxes
$0.19
Shippers.
Phoenix
0.07
Taxes)
$1.08
0.03
0.14
1.38
1.27
1.12
0.52
'4.72
'5.32
0.15.,
0,24'
3.95
3.86
$1.43
1.67
5.33
2.56
4.85
4.13
Pacific
Fed.
1.40
5.90
4.08'
1.26;
1.70 "
5.05
0.33
Springfield F. & M.__
Inv.
1.92
1.70
Jersey
Net Op.
(Fed.
$1.91
3.67
Assoplatj,on ^0.17
Great American
: —0.12
Fire
Total,.
Before.-
Income Profits
0.23
0 50
3.10
AIL
&
Bankers
Fed.
Taxes)
Net
Total
Net
—$0.29
.
inv.
Net Op.
Taxes
Income
Profits
$0.24
$1.75
$2.59
,
"
•
2.33 •
1,25
0.22
0.Q2
2.28
6.65
3.52
6.85
3.41
0.i2
"5.60
1.04
0.50
3.43
3.97,
8.37
—0.95
0.10
5.57
4.52
-0(55 / i 0:23
,
:
•
Total
net
operating
profits 1943, and in many instances sub¬
alone, howeverr do not tell >the stantially so. Generally speaking,
whole story, as further inspection companies which "were relatively
of the tabulation shows.
For in¬ heavy in ocean marine risks in
stance, all companies, with the 1942 {show better underwriting
:
those which
light in ocean
investment income, but when the marine but heavy in fire risks,
results of underwriting operation show poorer underwriting results.
All of the companies show sub¬
are
examined, great diversity of
experience is found.
Further¬ stantial ; increases in year-end
exception
rienced
a
of Springfield, expe¬
moderate decline in net
results in 1943, while
relatively
were
taxes, surplus, and moderate increases
prior to 1942 in unearned premium reserves,
and did not greatly affect oper¬ with the exception of Fire Asso¬
Liquidating values per
ating figures, now constitute an ciation.
important factor.
It will be ob¬ share of stock-of each'of the nine
served that
in
cost cases 1942 companies also show substantial
taxes were higher than those of gains.
(See Table II.)
income
Federal
more.
which
-Dec. 31.1942-
Dec. 31, 1943'
Un. Prem.
Liq.
Surplus
Res.
Value
$53.31
$26,614,000
$24,456,000.
Bankers
Fire
All.
&
1,887,000
Shippers.
Association
Great
2,967,000
______
23,05
4,016,000
2,494,000
,
American
9.107,000
.
22,619,000
1,058,000
Jersey
2,823,000
Pacific
43,763,000
Phoenix
banking
has
a
full-blown headache.
.
travellers
traders and
.countries.
was
NASD
offers
it
efficient
'.
interested
'
in
these
/
LONDON OFFICES:
Threadneedle ,Street, E.
29
C.
Berkeley Square, W. 1
47
Agency arrangements -with Banks
throughout the U. S. A.
.
It's mistake
NATIONAL BANK
of EGYPT
.Office
Head
Cairo
Commercial Register No.
1 Cairo
FULLY PAID
CAPITAL
RESERVE FUND
'
.
...
.
,.....
£3,000,000
£3,000,000
LONDON AGENCY
William Street, E. C.
6 and 7 King
Branches tn all
the
principal Towns in
EGYPT and the SUDAN
would increase.
The
security field has the right to demand and to expect
NATIONAL BANK
such action.
Somewhere
along the line revocation must come; if not
through the NASD then }through the SEC, If both bodies
fail to do this, the Courts Will come to the rescue.
g
In the meantime, the,longer .the: delay,-the. more acute-
of INDIA, LIMITED
Bankers
the
to
Government
Kenya Colony and
Head
■.
Office:
in
Uganda
28, Bishopsgate,
London, E. C.
26.71
3,467,000
as
the
Pacific ' Islands, and
the most complete and
service
to
investors,
Zealand,
London,
$58,48
119.22
Liq.
Res.
$23,265,000 $23,047,000
Aetna
man .was
New '■
,
.
Value
Un.Prem.
Surplus
a
ally believed that the rAsspciatioh /is , looking for; a way -out;
for some" face-saving device or compromise.* However, there is no compromise with freedom, whether
it be freedbm of speech or of the press or of doing business.
Illegal resttaints are alike odious to all liberty, loving people.
The danger lies not in a specific limitation, Mt rather in its
tendency to grow.
To us this business- of saving .face has always seemed
"the bunk."
'Tis a wise judge who, knowing he is wrong,
will reverse himself. The call is for courage, hot face-saving.
If the Board of -Governors of the NASD met and, frankly
acknowledging their - mistake, revoked the "5 % rule," both
their stature and that of the organization they represent
II
TABLE
American
;
small
were
inherent; that
lajrgest. bank In Australasia. With oyer
in all States of 'Australia, in
branches
800
lethal.
In private, some/ members oi its Board have
voiced their opposition to. the ''5philosophy.' | It is gener-
■
7.50
1.07,
,
as
The
2.48
2.02
,
he
was
and
.
was
1.57
2.56
5.51
'
0.44
1.27
In it the belief
SYDNEV
South Wales'is'the oldest
The Bank of New
Wealthy. Yhe effort5 to smear that one over
the industry failed, and we predict that history will be
repeating itself with respect to the "5% spread."
-1943-
-1942-
Before
premise thbt honesty|bqrel a ^direct relationship to
holiest
I
NetUnd.
American
false
assets.
TABLE
capital require¬
memory^;'It was; based; upon the utterly
■■
General Manager
•,
Head Office: George Street;
'v;
| V.
ment" of "sainted"
,|
operating profits.
Aetna
V.
Teletype—NY -1-1248-49
Gibbs, Manages Trading Department^
Bell
DAVIDSON,. K.B.E.,
SIR ALFRED
■
,1
You will recall the NASD!s ^minimum
Telephone: BArolay 7-3500
'
Hence, the persistent and unabating effort
depredations.
for revocation.
St
r,f-NEW
BROADWAYrNEW YORK 5, 1^.
a
•
drop of only one Cent per
its
Laird, Bissell & Meeds
Another company,
declines."
Bankers
ultimately no field|bf commerce,^will^^ be immune from
until
companies,
2,369,000
106.17
3,399,000
2.383,000
.
74.89
9,677.000
16,350,600-
11,584.000
9,567,000
"■22.85
28,292,000
16,742,000'
2,153,000
58.38
3,907.000
134.65
3,303,000
89.94
48,457,900
10,506,000.
1,301,000
87.05
*26.50
2,246,000
.
Branches in India, Burma,
I Colony and Aden and
Goldman, Sachs Quit Syndicate Because Of
147.85
11,001,0.00-
130.54
14,636.000
16,182,000
15,965,000
16,557,000
Springfield F. & M.__
*
Excluding capital and surplus of Great American Investing Co.
98.09'
137.94
II i
Subscribed Capital
Paid-Up Capital
'
Ceylon, Kenya
Zanzibar
i
£4,000,000
>_£2,000,000
'Reserve Fund---;—-£2,200,000
The
Bank
conducts
every
description
-.' i
-ji banking and exchange business
64.00
4,027,000
. .
the headache.
',
Justice Dept. Stand On Price Stabilization
of
4i
and Executorships
also undertaken
Trusteeships
The banking firm of Goldman, Sachs & Go., one of the largest
underwriting houses in the country, .withdrew from the syndicate
gain in surplus was premium reserves with 6.1 %, and which was formed for the sale of
$16,000,000 Florida Power Cor¬
made by American Alliance with Bankers and Shippers the mini¬
poration 3 % % mortgage bonds, headed by Kidder, Peabody & Co.,
while Fire
35.4%, minimum, gain, was 9.1% mum gain of 2%,
because of the action of the Department of Justice on Feb. 12 in
by Springfield Fire and Marine, Association shows a decrease of
the case of the Public Service of Indiana bond issue put out in 1938.
m
gain is The Justice
and average gain of the nine com¬ 1.1%, and the average
Department held>es-» 'I. •
'. I
IT
3.2%.'
Maximum gain in liqui¬
panies was 20.9%.
Aetna shows dating value per share is 16.2% sentially that any restriction on | restrictions are reported to have
Clarence
G.
Wolfe, formerly
resale prices was in effect a viola- been removed or altered j
the
gt vice-president of C; D. Bobbins
greatest
gain in ; unearned by Fire Association,; minimum
tion of the Sherman Anti-Trust
least four deals relating to new & Co., has joined the sales organi¬
gain is 5.7% by Springfield and
Act.
zation of jR. M. Horner Co., 30
the average is 11.6% 1
offerings. • According to the opin-^
In withdrawing from the syndi¬
Brdad Street, New York City.
As regards dividends, six com¬
Trading Markets
ion
of investment bankers, the
panies paid the same in 1943 as cate, the firm pointed out that
in 1942; on the other hand, Bank¬ the policy of price stabilization matter will require further clari¬
Greatest
G« Gr Wolfe Joins
,
||
BANK
||
and
INSURANCE
STOCKS
and Shippers paid $4 instead
$4.25; Jersey Insurance, $1.50
against $1.75,, and Pacific Fire,
$5.25 against $5,
A
ers
of
.
Morris Mather Dead
Teletype NY 1-1950
visory agency, and in view of the
close
margin of profit to under¬
writers
most
new
issues,- they
The
controversy
determination
arosp
over
of the right of
the
the
National Association of Securities
senior partner
Dealers to1 fine 70 of its members
Co., Chicago 'did not feel" justified in^entoring'
investment
bond
firm, died on the syndicate without a fixed re- for failure to live up to the price
Feb. 26.
Mr. Mather, who was 5$ :offering price,for a definite period.
agreement -in the initial • distribu¬
Because k)f -the
ruling of the
years old, came
to this country
tion of the Public Service of In¬
from
England and entered the Department of Justice in the In¬
diana Public Service issue, price diana $38,000,000 bonds.
investment business" in 1913.
Mather,
of Morris'Mather &
COrtlondt 7-9400
Pommission,'uand with:
the full knowledge of this super¬
Morris
*120 Broodwoy, N«w York 5, N. Y,
and control contained in syndicate fication
before normal conditions
agreements has been in effect since,
relating to^the offering of new se¬
the creation of the Securities and
curity- issues- will
be
restored.
Exchange
on
Associated Gas & Electric
Four Yrs. After
A.,
G.
Saxton
Pine Street,
issued
&
Bankruptcy
Co.,
Inc.,
70
New York City, have
study of Associated Gas
a
Electric, surveying the situa¬
and
tion
four
years
after
the bank¬
ruptcy proceedings were started,
and reviewing the 17th report of
the trustees.
Copies of this inter¬
esting study on the situation may
be
had
request from G. A,
Co., Inc.
upon
Saxton &
Volume 159 " Number 4260
THE COMMERCIAL & FINANCIAL CHRONICLE
IN London's old Berkeley Square,
William Pitt,
whose
pavements
branch of
a
came
into
a
being
an
inal
of thousands of
of
men
cial
our
American bank
jackets and admirals,
are
For
Chase branch in ways
seldom associ¬
once
it served its orig¬
purpose.Then Hitler struck—and
through the Blitz this office,
one
of the
ated with
a
ted States
for many
using this
are
National Bank, continued to facilitate-
then
was even
ties
new
in the short
scene
Chase branch. A
new
on a
history of this
service
was
candy and other gifts from their
orders
the
without
extending to hard-pressed Britain.
Pearl Harbor raised the curtain
of
im¬
:
This
by cable
overseas
ilies
Berkeley Square branch is near
new
of American military
and civilian activities
extensively.
its
in the British
at
home,
Berkeley Square has
chapter to add to the
-
•
„V'
OF
;'/•
THE
HEAD
CITY
:.
/
OF
OFFICE: Pine Street
v
-
.
*
~
NEW
corner
LONDON—Main Office, 6 Lombard Street; Branches, 51
a
many events
stately Georgian houses have seen.
'
i
men
keep their ties with their fam¬
THE CHASE NATIONAL BANK
,•
banking
organization in London helps the
profit to it for the service. :
the very center
to
departments
Thus the oldest American
airmail,
or
transmitted for them
likewise utilize these convenient facili¬
boys overseas—-the bank taking care
the aid which America
are
of American missions and
being cheered by flow¬
ers,
cashed daily
and from the United States. The staffs
throughout the Uni¬
three London branches of the Chase
are
members of our armed forces
and funds
commercial bank. Thou¬
sands of families
headquarters for much of the per¬
sonnel there. Checks
generals, blue¬
Pope
seven years ago.
few too-brief years
tens
armed forces, G.I.s and
Lord Clive and Alexander
trod,
capital. Hence it has come to be finan¬
mediately inaugurated there. As a re¬
sult,
901
-
%Vv;.X.V ;Vt
YORK
of Nassau
Berkeley Square; Bush House, Aldwych
•!
-
THE
and this board would be respon¬
Heavy Government Borrowing Does Not
necessarily lead To Inflation: Hansen
conduct of the
sible for the sound
(for that's what it is, a
business of investing money). The
directors would seek out the best
investment manager they could
find and hire him.
They would
business,
Union Bond
Fund "A"
other investors like yourselves, to
persuade them to join—for the
larger the group the less the ex¬
pense of operation would be for
each member and the better qual¬
ment
& Co.
Mutual Fund
Recently
Walter L. Morgan,
letter from Mr.
received a
we
Fund, Inc., on a question which has probably
caused more head-scratching than any other in the distribution end
of the mutual fund business.
people ask me what a
view towards having me respond in a few
writes; "I have had many
Mr. Morgan
mutual fund was, with a
understood^
be
could
that
words
f
"~T"
———
a
on
the difficulty of giving a satis¬
a Class of Group
give
The Services a Mutual
is
fund
Incorporated
GROUP#
63 wall
street—new york
company
should put your
with
together
re-
manage
deemable shares."
;
Some time ago we
had the op¬
portunity of discussing this ques¬
tion with Mr. Kenneth S. Gaston,
of
President
He
Inc.
Group
gave
Securities,
"layman's"
a
investment money
hire someone to
it for you—that would be
regulated
Federally
a
investment
f
that "a mutual
de¬
Fund
money
may
quite small—too small by it¬
self to buy more than one or a
few different securities—-too small
bond, it means very little to say,
example,
investment
"Your
DISTRIBUTORS
J know only vaguely the'differ-'
§ ence between a stock and a
| for
being managed by this
be
millions of people who
the
To
Securities, Inc.
Prospectus on Request
titpon to do just that.
been called
are
Performs
description of a mutual fund in
a few words has probably never
'
funds
it is easy
non-technical
clear,
a
is cooperative
mutual fund
method.
column.
to
"A
Equipment Shares
quest that we prepare such a de¬
scription and publish it in this
Anyone who thinks
they would surround
business of investing your
a
and
mutual fund.
"To make the
practical,
fund
would have to work out an
arrangement so that any one of
you could withdraw his money at
you
tures even though holdings
ran
about
but
it
comes
mutual
the
as
follows:
close
as
funds
(The
to
first
investor in a few
anything we have yet
as
seen.)
"What Is
"If
you
a
Mutual Fund?"
and
group
a
friends, each with
of your
to in¬
money
vest, should decide that individ¬
ually
or
you
the
did
not have the time
facilities
to
investments
own
handle
your
that
and
you
Sendfir
Prospectus
on
basis that would be fair to
a
handled.
time you and your
friends had thrashed out all the
the
"By
details, what you would end up
with would be a mutual fund in
the
a
number
of
shares each of you owned would
depend upon the amount of money
you put in. Some might own a lot,
some just a little.
"The later joiner would pay for
his stock, not the original price,
but a price that was fair at the
time he joined. The fellow who
trust
Distributing Agent
Place, New York
Exchange
at
withdraw
to
would sell
corporation,
the
a
profits realized on such in¬
vestments, would be paid out to
stockholders from time to time as
and
W. R. BULL MANAGEMENT CO. Int.
40
The
fund.)
original price, but at
price fair at the time. Income
received on the investments made,
not
N
of
corporation in which each of
you would own stock. (Although
it could also take the form of a
be
his stock back to tho
Fund, Inc.
sense
would most likely
It
term.
that
wanted
Republic
Investors
technical
modern,
dividends.
Management
"As
would
in
all
elect
corporations,
board
a
of
you
directors
the first requirement
It is
dure.
all institutions which make
of
business
investment
dowment funds,
foundations, etc.
diversification
need
You
much
just as
they do.
as
management
"Investment
experience,
is
SiiCUKijins Series
facilities
special
for
gathering information, close con¬
tact With markets, Investment in¬
stitutions have to have it — you
need it just as much as they do."
%
National Securities &
Research Corporation
120
Prospectus
from
may
authorized
The PARKER
ONE COURT
be obtained
dealers,
or
CORPORATION
ST., BOSTON
LOS
BROADWAY,
ANGELES,
BOSTON,
CHICAGO.
10
634
NEW
S.
YORK,
Spring
St.,
(5)
(14)
Post Office Square
(9)
St.
(4)
208 So.
La Salle
Government's
The
program
rationing and pric.e control, Pro¬
fessor Hansen believes, has been
Your comments
and criticisms
description
Certainly there are;
problems in the mu¬
tual
fund
field which lend
themselves more completely to
cooperative action on the part
"layman's"
on
this
are
invited*
few if any
of
and
sponsors
participating
than that of clarifying
the understanding of the layman
dealers
as
to
exactly
what
a
mutual
fund is and what it does.
glad to print in this
column
such other appropriate
brief
descriptions of a mutual
We shall be
fund
as
our
readers may care to
submit.
as
the
on
full
gross
$120,0(70,-
Incomes should
"B"
sell at least
around 60 and the common at per¬
haps 15. Taking these prices and
allowing for the cash allocation,
the 5s,
1975 at their recent price
56 reflect a value of
of around
only
for thq new preferred
This is about in line with
23
stock.
the common stocks of many of
the
reorganization properties.
Actually with a constructive debt
retirement program this preferred
other
might well sell around 50.
Such
a price for the preferred would
indicate
potential value of 80%,
a
dency could be offset by a budget¬
for the 5s, 1975, including the cash"
ing surplus and the retirement of
distribution of $225.78 per bond.
public debt or by the Treasury
To this would be added approx¬
holding the surplus in idle bal¬
imately $54 representing the pre¬
ances."
ferred dividend, and Income bond
The system of taxation followed,
interest for this year.
it is pointed out, also will have
Objections to the plan have
an
influence in determining the
been of a minor nature, mainly
inflationary tendency of a heavy
Government
debt.
If the tax centering around technical details
structure is such as to discourage as to reorganization managers, the
investment, "the potentialities of escape clause in the bonds, - and
the
dividend
restrictions.
One
a public debt are deflationary, not
inflationary." Accordingly, "a tax group has also suggested that the
cash payment to the 5s, 1975 be
structure that goes light on cor¬
porate income taxation and relies specified as including the dividend on the new preferred for
more heavily upon a progressive
personal income tax is more fa¬
for investment than one
vorable
a
,
period of three years so as to
the
lift
restriction
on
common
objections were
voiced over the security alloca¬
and
tions- or over the actual distribu¬
Professor
Hansen
emphasizes
tion of the cash. The proceedings
strongly the importance of main¬
should,
therefore, move fairly
taining Government credit as a
rapidly and may well be out of
fundamental factor in preventing
the court and presented to bond¬
inflation.
"We must defend that
holders by the fall.
credit.
Government credit is the
In view of the timing, some
foundation of our whole financial
question has arisen as to when
structure, In the great depression
the
cash provided in the plan
credit that
corporations heavily
personal incomes lightly."
which taxes
it
was
came
to
Government
the
rescue
of bankrupt
railroads, bankrupt banks,
rupt home owners, and
bank¬
bankrupt
Government credit
underlies the security of our sav¬
land owners.
dividends.
No
should be distributed.
As
no
ob¬
have been filed to the
distribution there appears to
jections
cash
be
no
reason
why at least a por¬
tion should not be paid out later
this year. For one thing, splitting
ings institutions, our insurance
the payment would avoid an un¬
companies, our commercial banks,
and
our
entire
credit system. justifiable tax penalty on holders
of the bonds. Obviously the pay¬
There are currently dangerous at¬
ment does not represent a single
tacks being made upon the credit
year's earnings but if paid all at¬
of the Federal Government. Reso¬
one time on consummation of the
have passed a number of
plan it would be taxable to the
legislatures proposing a con¬
holder of the bonds as income in
stitutional amendment to limit the
that
year.
Perhaps even more
taxing powers of the Federal Gov¬
ernment.
Even before the Con¬ important on an over-all basis is
that payment of part of the cash
stitution was adopted, Alexander
this year would give the company
Hamilton, in his Federalist pa¬
an
up-to-date list of the holders
pers, argued that any limitation
of bonds, so that ballots to vote
on the taxing power of the Fed¬
on the plan could more readily be
eral Government would be a grave
distributed.
The saving in time
mistake.
If, as is now suggested,
and money in'getting the names
we
s h o u 1 d,
by constitutional
in this manner would be consider¬
amendment, deprive Congress of
lutions
State
INVESTMENT
'
Prospectuses upon request
a
It requires training,
full-time job.
Trading Markets
NATIONAL
a
savings
companies, en¬
insurance
banks,
—
little
,
hire pro¬ an effective means in decreasing
management.
private expenditures and prevent¬
But because you have joined with
ing inflation. As to the post-war
many others the total amount to
period, much will depend on
be invested is large—large enough
maintaining an equilibrium be¬
to spread over a wide* list of se¬
tween private investment and net
curities—large enough to afford
private savings.
"If private in¬
good management, You get every vestment exceeds net private sav¬
benefit that the largest contrib¬
ing, inflationary tendencies will
utor gets.
Your money is being be present in the economy when
handled in just the way that an
the level of the public debt is
investor with millions would have
maintained. This inflationary ten¬
his money
as
in¬
deposits
enable you alone to
to
requirement
of
No inconsiderable part of
this restraint in private
fessional investment
of
everyone.
demand
dividend
revenues
covering
in
difficulty
of cur¬
000, or more than $100,000,000 below gross reported last year. With
expendi¬
the
basic
improvement in the
tures is voluntary.
If you cannot
road's western territory in recent
buy an automobile, you may de,years and the importance of this
cide not to spend at all.
If you
section in any post-war develop¬
cannot build a house, you may de¬
ment of the Far East/ there should
cide to save your money in order
be little danger of the road's busi¬
to build after, the war.
In part,
ness falling
to such a level for
the voluntary restraint on spend¬
many years to come at least.
ing is induced by fears or antici¬
Under the proposed reorganiza¬
pations with respect to the future
—the fear of future tax increases, tion, the Gold 5s, 1975, are al¬
located $225.78 in cash, $179.38 in
the fear of future unemployment,
Series "B" Incomes, $918.91
in
anticipations with respect to post¬
war
business needs, and so on." preferred stock and 0.975 shares
of new common stock. The Series
of
terests of the group.
making
understanddable to
average
Words
time
any
and
rency
without injuring the in¬
"Diversification,
that is, the
Since other
friends might want to join you at buying Of many investments rather
paragraph may not be exactly
than one or a few, is the corner
a later date, some way would have
what Mr. Morgan had in mind,
stone of sound investment proce¬
to be worked out to include them
scription of a mutual fund which
.
increase
crease.
investing.
Nearly three-quarters
of a billion dollars of investors'
50-word
to
of
other words,
Railroad
paragraph, and
concludes with the flattering re¬
25
the
re¬
Act
by
for
them,
to
| Moreover, there should be little
be curtailed as an offset to
in public expendi¬
may
money and that of your friends
with all the modern safeguards;
factory "layman's" description of
a mutual fund within the scope of
a
.'j,-'
Congress enterprises of this type
are under Federal regulation.
In
the
layman." He then comments
by
ports
it
r
register
submit regular
and
thorities
,
governments
politically necessary to\ our money and the value of Govfinance a very large fraction of ernment bonds."
:;.-.v.?••/
■
• > ?#• ; ^ - v>.A' lipf.si
iI,, I
t-,'<>rJ-4:war
expenditures by borrowing
from banks, inflationary poten¬
tialities appear. But these poten¬
tialities need not result in price
;
(Continued from page 895)
inflation.
Private
expenditures
with Federal au¬
company
'
Railroad Securities
would
directors
"The
ernment, the purchasing power of
•
expendi¬
to be pre¬
is
•
ants to audit the books.
your
in-
:
have
inflation
modern
found
Federal Regulation
President of Wellington
lower
He adds "since, in fact,
decrease in private
a
all
account¬
of certified public
Fund?
What Is A Mutual
by
$3,500'and to
the
proposals should be vigorously resisted by all who have any regard
for the integrity and security of
our financial institutions.
If our
social order is to survive we must
maintain the credit of the Gov-
■
hire a
bank to act as custodian of all the
cash and investment securities, a
firm
dangerous infla¬v
potentialities," but, dur¬
tures, if
vented."
on
Proposals have also been
made to limit the borrowing power
of the Federal Government. Such
-
would
directors
no
rate
comes?
•
,
"The
"offers
the
limit
ing war-time full employment pe¬
riods "any increase in Govern¬
t
ment expenditures must be offset
Safeguards
CITY » LOS ANGELES
CHICAGO * JERSEY
raise exemptions to
•
-
tionary
of investment management
could afford to hire.
you
out that
an in¬
i
borrowing in
of widespread unemploy¬
times'
ity
NEW YORK ♦
(Continued from page 891)
further pointed
crease
in
public
sen
to have someone talk to
arrange
Prospectus upon request
Lord, Abbett
INCORPORATED
Thursday, March 2, 1944
COMMERCIAL & FINANCIAL CHRONICLE
TRUST
Issues
able.
With these considerations it
to impose income tax ;
is generally felt that part of the
of 25%, will not :
cash will be paid out this summer.
others propose an amendment to 1
the
power
-rates
in
excess
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4260
608,002 Policies
owned by Penn Mutual pol¬
icyholders at the end of 1943,
were
totaiing $2,082,199,121 of tife insurance
protection.
New Business in 1943
Willi the Nation at
Americans have
to
Penn Mutual believes that
war,
These
right to know what part insurance
a
$292,158,717
or
nearly one-third of total
The
assets.
purchases together with large investments in
play in the light. During 1943, Penn Mutual's
railroads, utilities and other essential. industries, have
purchases of U. S. Government Bonds brought the
made Penn Mutual Life Insurance dollars1 serve the
Company's total holdings of U. S. Government securities
Nation iiralmost
dollars
Tour Company's income
during the
phase of the
every
war
new
life insurance
1943 amounted
a
to
paid for in
$123,249,139—
gain of $6,660,966
over
the pre¬
vious )ear.
effort.
year con¬
sisted of:
Insurance premiums, annuity deposits, divi¬
dends left with the Company to accumulate
'
.
at
.
interest, and policy proceeds left with
the
Company for future distribution under
of settlement . .
/.
options
Investment
income
dividends
and
consisting of interest,
of
increase
net
rents,
$644,436.02 in book values of assets, less
of foreclosed real estate including
expenses
$750,322.02 for real estate taxes
Net
gain from sale
assets
Other
.
.....
other disposition of
or
•
.
6
•
income
During the
Company:
year your
.
"1
Made payments of
policy benefits to policy¬
holders and beneficiaries amounting to , .
r
Increased the
policy reserves and accumu¬
by the amount of . . .
lated dividend fund
Paid the
.
.
:
of operations for
the year including $2.180,170 68 for federal and slate
taxes, licenses and insurance department
fees, of which $775)Oi)0.00 represents esticost
mated federal
for 1943
income tax
your
Company
.
,
.
,
s net income was
1,1943', fhe.surplus reserve for the protection of policy¬
holders and available for mortality and investment fluctuations
muary
and other
contingencies amounted to
•
.......
g
......
From the above, your
of dividends to
•
1944
in
So thai the
Board of Trustees provided for the payment
poteyhohlers on policy anniversaries during
the amount of
surplus
...
reserve at
.
.
.
.
.
December 31,1943, amounted
.
to
LIABILITIES
-
and interest earnings provide for
under the policies in force . . .
left by policyholders with the Company at interest, and interest
reserves which with future premiums
the payment of benefits as they fall due
Policy
Dividends
9,900,000.00
.
$ 44,168,450.12
.
credited thereon
......
.
THOMAS S, GATES
MARTIN W; CLEMENT
.
.
.
.
...
..........
.
PHILIP C. STAPLES
JAMES E.GOWEN
............
.
JOHN A. STEVENSON
WILLIAM W. BODJNE
.
payable to policyholders on policy anniversaries during 1944 (This
is distributed from savings in mortality, expenses, etc., and from
interest earnings in excess of requirement of policy reserves)
Policy claims in process of settlement . . . . . . . . .
.
. . .
. . . . v.
Premiums, interest and rents paid in advance; accrued taxes; dividends to
policyholders m course of payment; bills for current operating expenses?
amount
and miscellaneous liabilities,
MORRIS L. CLOTHIER
JOHN STORY JENKS
.
Dividends
£
WALTER CLARK
CLINTON
Fl
BENJAMIN
MeCORD
RUSH
ADOLPH G. HOSENGARTEN
WILLIAM
M. F.LKINS
ARTHUR
C.
DOKRANCE
CHARLES R. .SHIPLEY
WALTER 1). FULLER
EDWAR1) E. RROWN
CHARLES E. I) KIN LEY
JOHN
WILLIAM
GEORGE
H.
KINCSLEY
E. HIERWIRTH
E. ALLEN
LEONARD T. BEALE
GEORGE WHARTON PEPPER
W'M
WILLIAM 1. SCHAFFER
ROBERT T. McCRACKEN
Surplus Funds:
Reserve for mortgages
Surplus
reserve
,
.
....
.
for the protection of policyholders and
investment fluctuations
available for mortality and
and other contingencies ,
.
.
.......
....
ROBERT L. JOHNSON
FULTON
KURTZ
above statement are on deposit with
certain States as required by law.
of Income and Surplus Reserve are
prepared in accordance with accounting principles applied by the Insurance Department of Pennsylvania.
NOTE A—United Slates Government bonds carried al $263,357.61 in the
WILLIAM H. KINCSLEY
Chairman
oj the Board
JOHN A. STEVENSON
President
LIFE
NOTE B—The Statement of Financial Condition and the related Statement
COMPANY
INSURANCE
FOUNDED
INDEPENDENCE
SQUARE
1847
•
PHILADELPHIA
THE COMMERCIAL &
904
Thursday, March 2, 1944
FINANCIAL CHRONICLE
w6rld,f6r
economic systems of the
Inflation Antidote-High
Output And Low Taxes
great outpouring of money.
request
on
has
increased
Wood, Gundy & Co.
the Bureau of Labor Statistics, has
Incorporated
equivalent of a flat sales tax,
without exemptions, of 24%/on
14
increased
Wall Street, New York 5
Vancouver
Winnipeg
Montreal
Toronto
Canadian Securities
marked improvement has been
registered by the bonds of the Canadian western Provinces, never¬
theless the Canadian appraisal of many situations in this category is
still considerably higher than here.
This is particularly noticeable
in the cases of British Columbia and Manitoba. In Canada, the credit
of British Columbia now vies with that of the highest rated Prov¬
inces, Ontaria and Quebec. There f
obviously very good reasons' in greater volume. As
for this state of affairs, a few of however, this did not
are
which
cited
are
as
Columbia
British
has
ing an imminent settlement of the
Montreal debt situation brought
of natural resources than
other Canadian Province, in¬
the finest stand of soft¬
wood in the British Empire, vast
range
any
the issues of this
cluding
the forefront
hydro-electric
soil
the
and
scenery
vincial
best
power,
4^s were well bid
Direct Dominions moved
higher and there was an excellent
demand for the 3s of 1953 at 103%
and the 3s of 1958 at 104.
Nationals continued their up¬
ward course and the 5s of October
1969/49 were in demand at 117%.
Ontarios and Quebecs were also
at
rich
climate
and
in all Canada. The pro¬
finances have been ex¬
pertly handled by Premier John
and the present position is
excellent.
A revenue surplus of
Hart
par.
firm,
$5,196,040
was
realized during
1941-42 and, in the last financial
year,
municipality to
of popular interest,
and the long
coal, iron and precious and base
rich fisheries, abun¬
metal mines,
dant
Rumors concern¬
in all sections.
wider
a
anticipated,
prevent the
making further headway
market
follows:
especially
term area.
the
shorter
Nova Scotias and New
Brunswicks
the surplus exceeded $8 mil¬
Consequently, there is every
in
steady
were
an
average
with
It hits
fixed in¬
form of taxation.
•
particularly those of
comes, the millions of "white-col¬
lar" workers, the beneficiaries of
insurance policies, old age pen¬
sioners,
disabled
veterans; de¬
pendents of soldiers and sailors/
and endowed institutions of relig-/
ion, science, education and phil¬
anthropy,
The burden of infla¬
tion, however, is much more seri¬
ous, for inflation is a tax not only
individual's. expendi¬
tures, but on his savings and capi¬
every
on
tal
well.
as
the
far, inflation is more of a
threat than an actuality, due to
So
rather than to spend, the tre¬
mendous
Snow Lake
area
little
is
of northern Man¬
no
activity,
reason
to suppose that the
perform still another miracle
fine and lasting peace. Jt will
not do so .if pressure groups are
permitted to turn that productive
capacity into a battleground for
their own selfish, interests or in¬
flate'ourselves out of the world
its
in
natural
manufacturing
sources,
and normal labor
re¬
Conclusion
been
the
supply.
Its
ca¬
price fixing and. restrictions that
produce.
retard the incentive to
The Factor of Taxes
generally assumed that the
excess-profits .tax
will be re¬
It is
to
There
taxes
are some
should'
therefore,
should
that
rank
Scotia and
Manitoba
with
New
bonds
of
those
assistance in this direction would
be the
moving from Canada
lem and
or
a
definite settle¬
a
call for redemption on
before May 1 of the Canadian
National 5s of July 1,
Taylor, Deale
64 WALL
of
ment of the Montreal debt prob¬
Market activity during the past
week was on an increased scale
with bonds
news
Nova
Brunswick.
&
1969/44.
Company
STREET, NEW YORK 5
WHitehall 3-1874
*8
canadian securities
Government
•
Provincial
•
Municipal
»
/
Corporate
save
rather
than
pent-up demand for goods
and relaxed controls,
which can be met with adequate
production. The means, to prevent
inflation, therefore/ are ready to
transition
especially
since political
normal
of
supply-de¬
free
factor
unless
hampered by unwise Gov¬
a
economy,
ernment restrictions and excessive
taxes.
—
"Investment Tim¬
From
ing" of Feb. 24th, issued by the
Economic & Investment Dept. of
the National Securities & Re¬
search Corp., New York City.
an
and
consid¬
prob¬
erations and administrative
the
mand
post-war measure. But insofar as
taxes hold back -production, and
people have increased from an an¬
nual average of only.$5,000,000,000
during the 1930's to more than
in
hand
Kobbe, Gearharl Place
Majestic Radio Stock
*
Kobbe, Gearhart & Co., Inc., on
lems have prevented taxes from Feb. 29 completed a secondary
$13,000,000,000 in 1941, $27,000,- being levelled where inflation-; distribution of 69,945 shares of
000,000 in 1942, and $36,000,000,000 ary pressure is greatest, high taxes Majestic Radio
and Television
in 1943.
It is estimated that by would be
inflationary, because Corporation
common
stock at
the end of 1944 the country will
they would tend to a limitation on $3,375 per share and the books
have a reservoir of savings ap¬ the
supply of goods.
have been closed.
The shares
probably see the removal, partial
of these factors, and then
come the test of inflation con¬
offered
The Means of Production
as
the
Production as the Answer
of
war
public may try to buy more
than
are
immediatelv
goods
available.
Majestic was organized to pro¬
duce and sell radio receiving sets/
production demonstrate conclu¬ to be sold under the name and
sively that, given free rein, Amer¬ trade mark of "Majestic" arid
ican suppliers of goods and ser¬
"Mighty Monarch of the Air"
vices can produce to such an ex¬
which were acquired at the time
tent that the inflation unbalance—
Majestic began operations. ^ The;
a greater amount of the means of
present production of Majestic
payment than of goods and ser¬ consists of radio and electronic
vices to be bought—need riot be¬
equipment for the Army and
come operative for any important
Navy, including / manufacture of
period of time.
Piezo quartz crystals. ? Orders for
Against the inevitable delay in
such equipment have been suffi¬
switching to full civilian produc¬
cient to date to enable Majestic to
tion there will be the offset of the
make use of its production facil¬
release of large amounts of sur¬
ities and / increase its earnings.
plus goods no longer needed to be
Majestic has had no major prob¬
held for military purposes and of
lem in converting to war work
•
the
reduction
in
military
con-;
and, while no assurances can be
sumption of other goods.
given,
expects
no
substantial
Thus, without restrictive fac¬
problem or delay in reconverting
tors, strong inflationary develop¬
to peacetime products when that
ments need not be expected—in¬
deed, deflationary ones are pos¬
sible in the switch from what is a
market toward a
buyers'
becomes
possible re¬
factors, including Gov¬
"There has been too
much loose
permissible.
Majestic's manufacturing opera¬
tions both in peacetime and in
war,
There are, however*
strictive
gether with the need of all types
of repairs, renovations, moderni¬
zation, plus development of new
products and processes.
The great danger is that the
and
sions.
goods and services.
The tremenddus feats
demand for goods
ernment limitations on produc¬
in the post-war period will be
tion, on materials for production,
enormous; and the means of pur¬
on prices or wages, which would
chase will be plentiful—cash, bank
being
accounts and salable Government prevent production from
brought fully into play, and cor¬
bonds.
With the advent of peace
porate financial limitations which
many
individuals probably will
could also rise, principally as a
cash in their Government bonds
result of Government action (con¬
in order to buy hitherto-unavail¬
tract payments, taxes).
able goods or make a down pay¬
The Baruch-Hancock report on
ment on a new home; or else they
Post-War
Adjustment
Policies,
may regard
their savings as a
just published, is a statesmanlike
backlog and may spend more and
document which gives a bright
save
less out of theii; post-war
picture of the nation's economic
incomes. This normal pent-up de¬
future and states the American
mand undoubtedly will be supple¬
free
enterprise
philosophy
in
mented by a heavy demand for
strong terms.
It reaffirms faith
our products to feed
and recon¬
in private enterprise:
struct the devastated countries, to¬
The pent-up
issued
normal
Possible Restrictive Factors
trol.
already
are
outstanding and the proceeds will
desire of
be received by the selling stock¬
consumers
will be to replenish,
holders.
The net to the selling
resume and add to their required
stockholders is $2.75 per share,
or wanted goods and services, the
with 50 cents per share for under¬
normal desire and course of pro¬
writing discounts and commis¬
ducers will
be to supply such
Must
market.
conclusion,
to
spend increased income.
The danger will be enhanced in
and services,
who believe that
be kept high as
anti-inflationary
American
sellers'
the
an ac¬
lated
sulfa drugs, etc.
at least,
at
threat than
a
combination of war-time
price controls and the nation's de¬
courage
will
arrive
inflation has
war
a
by
termination
pealed and corporate income and
modified, which will en¬
post-war
We
of
The danger, always pres¬
tuality.
surtaxes
itoba may be the
basis of a major present strong tone will not con¬
field.
With regard to
tinue, especially in the shorter
the financial management, Mani¬
term section of the market. Two
toba's record in this respect is
second to none in the Dominion. factors that could be of material
more
the post-war period by a combina¬
hampered by factors such as taxes/ tion of record savings, accumu¬
The Increase in Savings
of
the
During
facilities ent, has been in the main averted
pacity to ' produce, developed and
enhanced by the demands of war,
is estimated at 50% mofe than it
was in 1940/
The industrial ma¬
chine can function superbly, if un¬
surplus of disposable in¬
savings
a
word—production.
facilities for market"
Croesus-like
come. '
The
out¬
.
can
in
the investment of "ven¬
ture
capital" in new products
three factors; thorough publicizing
and processes, as well as further
of the danger, reasonably ade¬
development of industries in new
quate rationing and price control,
fields such as plastics; electronics/
and an intensified willingness to
save,
has
system
■/'•':* /
productive capacity
"America's
production are sufficient to satisfy
even
the high levels of demand
to be expected.
The nation/ is
but
Manitobas
again
were
in strong demand
justification for the obligations of with the
longer term issues quoted
this province to sell well in line
proaching $100,000,000,000, more
on a 3%% yield basis. Saskatch¬
with those of Ontario and Quebec.
ewan
continued their improve¬ than our whole national income
Turning to Manitoba, as far as ment and the '4%S of 1960 were in any year before the war. These
investment opinion in this country quoted either side of 91. There savings are in hands of people who
is concerned, it can be very well was a renewed demand for Alnormally spend more than they
termed the Cinderella Province of bertas with the 4%s bid at 83, save; three-fourths are held by
the Dominion.
The popular be¬
Canadian
Pacific perpetual
4s members of the lower-income
lief is that Manitoba is just a
reached
into new high ground group.
wide extent of prairie producing
While inflation-conscious Amer¬
with bids around 93%. Internal
very little except wheat. In real¬ issues
were
inactive with the ica has shown examplary self-con¬
trol during the war, to what ex¬
ity, wheat accounts for less than dollar
in
thetp "free" /market
10% of the value of the provincial
slightly easier at 10% % discount tent will this attitude .persist after
income.
Manufacturing
is
the
the war is over? Hitherto several
A bullish factor affecting this
factors have entered into the prac¬
principal
item
in
Manitoba's
section of the market has been
economy, and in 1942 represented
tice of saving rather than spend-largely overlooked. This is the
48% of the total. The proportion
ing; the purchase of war savings
right of holders of Canadian in¬
for agriculture was 43% in the
bonds in response to appeals to
ternal bonds who have brought
same year, and it is more widely
patriotism;' unwillingness to pay
bonds down from Canada on the
diversified
than
in
any
other
higher than accustomed prices; in¬
rate, to register them with the
Province.
Although the mining
ability to obtain durable goods
F oreign
Exchange Control
such as automobiles, refrigerators/
percentage currently is only about
Board. Such holders then have
4%, there are high prospects for
etc., and lack of opportunity to
the privilege of resale of the
greatly increased mineral produc¬
spend for construction and im¬
bonds in Canada, which is obvi¬
tion.
An
immense
tonnage of
provements/The restraint of the
ously an important advantage.
chromite ore containing iron was
people may not have been alto¬
discovered in 1942 in the Bird
Looking to future developments, gether voluntary, for a lot of
River area, where there is also we are now within a few weeks things that could be bought be¬
abundant
hydro-electric power. of the
commencement
of
the fore have disappeared from the
Therefore, it is hoped to develop Sixth Victory Loan drive.
This market, but a great deal of the
an important ferro-chrome indus¬
use
the
purchasing
might slow down the general ac¬ failure to
try in the post-war period.
Also
power must have been deliberate.
tivity to some degree, but there
recent
gold discoveries in the
The
war's
termination will
lions.
one
American
produced the world.
Our resources and
of 24%—the
every family in the United States.
In a sense inflation itself is, of
London, England
course, a
Although in the last few years
causing price inflation and de¬
stroying the value of both incomes
and savings./
It is fundamental
that the price of a commodity or a
service will : riot rise if the supply
rapidly without any commensur¬
ate increase in the supply of nonwar
goods.
Inevitably we have
had a degree of inflation already. is ample in relation to the demand.
Since the war began the cost of Consequently the solution of the
living, according to the Index of inflation problem seems to lie in
New Circular
Copy
income
national
The
own; for
the
(Continued from page 890)
Province of Ontario
Communism, Fas¬
cism, Nazism—all the others. And
our
consist primarily of the as¬
of parts produced
by-
sembly
others to its
specifications.
organiza¬
Majestic
has shown profits was the fiscal'
year ended May 31, 1943.
Earn¬
ings in that year and at present
The
tion
only year since
in
1936
in which
business
indirectly, with the
States
Government in
connection with the war effort
are
derived entirely from
directly
United
and
or
there
is
no
assurance
that
of this nature will
be received nor that present con¬
tracts may not be cancelled in
whole or in part at any time.
future business
Forms Lewis &
(Special to The
SAN
Del
M.
Broy
Financial Chronicle)
FRANCISCO, CALIF. —
Broy is engaging in the
under the firm
securities business
parroting of the slogan that if in¬ name of Lewis & Broy from
dividual enterprise fails to pro¬ offices at 381 Bush Street.
Mr.
vide jobs for everyone it must be
Broy1 recently was connected with
replaced by some one of the other
The Broy Company.
In the past
systems that are around. The war
has been a crucible for all the
i'
Volume 159
HMSufftm^avf
'-vnKt»rt^rc-<
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4260
Rule Will Close
90S
States, will be greeted by dissatisfied dealers, former, selling
group
members of the first issue (if they
are still in business), with the fact
Capital Markets
(Continued, from page 891)
ice,, such
as
two,
one,
or
which is an important factor in
permitting the
companies to
give the character of telephone
service which the nation de-
more
years, may be included, and other
classifications
' be
chosen
where appropriate.
However, no
mands and requires."
classification may discriminate, in
favor of employees who are high¬
Mr. Harry J. Hughes, a member
ly paid employees, stockholders, of the Executive Board of Elec¬
supervisory employees and the trical Workers, affiliated with the
American
Federation of Labor,
Benefits payable in some future stated;
period are then determined. The
"Probably no other condition
benefits may be in the form of a
of employment is cherished so
pension payable for life after re¬ ;
highly as the comfort one re¬
tirement, and usually in propor¬
ceives in knowing that he will
tion to compensation, or they may
be secure in his old age.
In¬
be in the form of funds distrib¬
dustries that
do not provide
utable at some earlier time.
;
f
pensions turn their loyal and
The problem of salary stabiliza¬
faithful employees away when
tion is sidestepped because if the
they are old, and they have to
plan secures Governmental ap¬
depend upon the mercy of the
proval, the contributions are ex¬
State or the goodwill of their
empt from stabilization restric¬
friends for support."
d
\
.
tions.
This
tributions
may
is
are
because
the
made to
con¬
insurance company, and are
or an
made
available
to the employee. On the contrary,
they are distributable only at re¬
tirement, or death or disability, or
in 10% annual insallments begin¬
ning in 10 years, or 20% annual
not
immediately
installments
In
trustee
a
"An
in
These
hand, the wage
earners
participating in such a
plan receive the benefit of having
a nest egg laid aside for them out
of current high earnings against
some rainy day in the future.
Not only this, but these contri¬
butions are not taxed until actual¬
ly received by the employee. This
that the withholding tax
does not apply
and when the
funds are eventually received it
means
expected
be
may
that
taxation
will be at 16wer rates.
Frequently very substantial life
insurance protection accompanies
these plans as one of their ele¬
ments.
A vast proportion of the funds
contributed by employers is in¬
vested directly or indirectly in
Government
securities,
thereby
assisting the war financing pro¬
gram of this nation.
:
/
effects
observed
The
as
security of
the basic worries of
are
employees.
,
other
program
deals with
Our
policy
recog-
put forth
their best efforts if they are re¬
lieved of these anxieties. It was
nizes
that
smaller
workers
unless
and until that rule is eliminated.
Let
try
me
to
explain
a
issue
basis, the smaller dealers
carry
living compensation.
dilemma:
if
dealers
The SEC has permitted a profit
of 15% to 20% on new "second-
their salesmen
grade"
financing,
our
depending
the
whether it is preferred stock,: in¬
dealer
in the security
limited profit.
semi-speculative
com¬
stock.
At the first thought,
it might be said that the 5% Rule
will cause smaller security firms
mon
to join
selling groups
ily and obtain
read¬
than half of
more
more
the 15% to 20% of the underwrit¬
ing profit and henceforth not pick
up over-the-counter issues for re¬
sale to customers
as
much
such
as
dealers have done in the past. But,
second
on
thought,
that
it
the
a new
issue is
become
securities
must
when
and
be
primary
com¬
or common
over-the-counter
then
the
dealers
must henceforth comply with the
5% Rule to trade or resell such
Stock.
Note the
inconsistency, the sell¬
ing group members get more than
half of 15% to 20%, or 8% to 12%.
With such profit, that firm in turn
can pay their retail salesmen 50%
to 60% of their profit. Upon such
v'
■ ■■■, ■
',—.———
make
—
.
""
«
the
nor
salesmen;
can
the customers, who purchased the
stock of the first issue; the under¬
writing firm is stimied in floating
the second or third issue, and all
succeeding issues, which under
normal conditions should be read¬
survive
Many people do not realize the
ily marketable.
.P./"
Thus ends all your underwrit-
the sales¬
manship
required to distribute
second-grade or semi-speculative
issues. Only experience as a sales¬
man
or
vince
small
dealer
could
will
exists.
second-grade
inations
:
ness"
a
new
results
work.
While un¬
employment benefits are help¬
ful in emergencies, the feeling
by employees that they can
a
policy.
these
to be
cover
Without
capital
fur¬
cause
/
again assumed by the Gov¬
the
larger
WPA, be¬
corporations
surely cannot provide all employ¬
ment necessary at
the end of the
.
"
war.
WHITNEY-PHOENIX
COMPANY, INC.
the
STRABO V.
CLAGGETT,
President,
policies in promoting a
feeling of partnership in the
same
territory,
his
wholesale
salesmen, covering the dealers lo¬
New York
business"
cated
Feb. 26, 1944.
All of these securities having
to
different second issue to
lines.
working
ernment with a revived
advantages to them¬
and the company both.
of
sell out to "big busi¬
or
similar
bilities are very dark.
Probably
the employment burden will have
in
the effectiveness
sense**
nished to hundreds of small firms,
the post-war employment possi¬
issue because of
testifies to
labor
better
in
in
adequate
the 5%
of
protection is an
toward
career
"common
v
If the; SEC shotild not do so,
then Congress should act; other¬
wise, all small businesses will
either have to- "grub" along with
high taxes
a
Many industrial companies have
since adopted similar programs,
and social
security has been
provided by Government. Most
employees look at job security
as the most important feature
incentive
a
speculative orig¬
or
that
should be quickly injected by the
SEC to terminate the 5% Rule.
Rule, obviously, the un¬
derwriting firm cannot buy all the
selves
stock back at the offering price
With these incentives, they de¬ because of lack of resources, the
vote themselves wholeheartedly
market on the newly sold issue
to their work. The number oi will fall off sharply.
employees who have had con¬
Suppose the underwriting firm
tinuous service of 30 to 40 years tries to go out with an entirely
found that Such
long as the 5% Rule
The whole situation is so
as
evident that the 5% Rule ends all
fortune or a
comfortable family income was
once acquired by past risking of
capital.'\
Now, if the security dealer can¬
not help maintain the secondary
many
start the second under¬
even
writing
con¬
people that a small
retail distributing security firm
must have 8% to 12% profit Re¬
member, all former prime issues
or "blue chips" were once secondgrade although they may have
been originally distributed 10, 20.
30, 40 or 50 years ago. The buy¬
ing of such issues as General
Motors, Kresge Stores, General
Electric and American Telephone
and Telegraph were once specu¬
and
:
ing business as no firm with
wholesaling or distributing ability
many
lative
'
salesmen
with
business with such
or
on
declined
Unhappy, because their retail
are "getting hell" from
ers
on
hard work involved
market of
—
business
can
But,
the secondary
market the 5% profit, because of
the 5% Rule, neither the Small
vestment
or
divide
must
has
the
can
arid their salesmen
on
earn a
*
•
in
many
cities
in various
City,
been sold, this announcement appears as a matter of record only and is under no circumstances
as an offering of these securities for sale, or as an offer to buy, or as a
solicitation of an offer to buy, any of such securities.
he construed
NEW JS SUE
upon
$16,500,000
morale of these plans are tremen¬
Labor feels
getting a fairer share in
current inflated earnings without
contributing to the inflationary
beneficial.
dously
issues
pleted, such preferred
employment and protection
against the hazards of sickness,
accident, old age and death.
in the event of ter¬
of
distribution of
feature
adopted
outstanding
1918
writing
stocks
labor
our
creased.
the
report
New Jersey stated:
employment.
Thus
their inflationary gap ; is not in¬
On
annual
latest
the previous
sharply from
public offering price. Therefore, with numerous smaller deal¬
(Continued from page 891)
realized
stockholders, Standard Oil Co
of
mination
its
that the market
■
that it is
Florida Power Corporation
The specter of post-war
is largely defeated and
the fear of death, penniless old
age or disability-is removed. The
spiral.
deflation
of
result
all
this
is
a
First Mortgage
Bonds, 3%% Series due 1974
happier
Workman, more cooperative with
management and more effective
as an essential unit of production.
Dated
Due
January 1,1944
January 1, 1974
i>
all over the country
are engaged in the process of in¬
stalling these plans with very
War plants
successful
results.
Pr|ce 104.8257% and accrued inter est
■-
public
comments about employee benefit
Here
are
of
some
'"
■
plans:'
the
■'n
statement
a
be obtained in each State from such of the
legally furnish the Prospectus in :
...
compliance with the laws of such State.
Copies of the Prospectus
undersigned as
may
may
Kidder, Peabody & CoWhite, Weld & Co.
stated:
public and employee in¬
terest and benefit demand that
the Bell -System pension plan
be hot5 terminated. The maintehanc# of the' pension plan has
rriarkediyincreased the con¬
tinuity of service of Bell System
employees and reduced labor
turnover.
These employees,
long regarded as one of the
most efficient groups of em¬
Shields & Company
•
Lee
F. S. Moseley & Co.
ployees in the nation, have an
average period of service ap¬
proaching the span of 15 years.
"The maintenance of the pen.
"
sion
part
plays: an important
the building up of
among the employees,
plan
in
morale
Higginson Corporation
Laurence M. Marks & Co.
Alex. Brown & Sons
Harris, Hall & Company
"
(Incorporated)
"The
'
JfV
"
published on
July 15, 1943, Senator George,
Chairman of the United States
Senate Finance Committee, said:
"They are a prime means of pre¬
serving private capitialism in its
contest with State capitalism."
With reference to pension plans
before the House Ways and Means
Committee, the following testi¬
mony
was given:
Mr. Paul E.
Griffith, President, National Fed¬
eration
of
Telephone Workers,
In
I !
u
Stroud & Company
Equitable Securities Corporation
Oft \ ftp'
iijfkV
Ti
L.F. Rothschild & Co. 'bur
't'i
?
Auchincloss, Parker & Redpath
Incorporated
R.L.Day&Co.
February 28y 1944.
Putnam & Co.
Dean Witter & Co.
Y:
tion
against less than 20 mil¬
by the Cochran
lions
as
lion
Contract
Bank of Manhattan Renews 104-Year-Old State
covered
after five years
the
that
the
original
be narrowed and
in process along this
line.
'
'
'
County -elected
,
conclusion, we should like
"In
which
after
series
1943
1974
a
issue of
new
and
104.8257
at
terest.'- The
$16,7
accrued
banking
the
chased
group
in-;
pur-;
competitive*
underwriters in-'
bonds
sale Feb. 23. The
at
elude White, Weld & Co:,." Shields
of
at
\
500,000 1st mtge. 3%% bonds due,
date
the
fix
to
the
;
by Kidder, Peabody & Co. and',
associates of
provisions of said Article 720 the
Commissioners'
Court of Bexar
of the
scope
are
25
date
<
FebJ
Formal offering was made
may
left
hope
some
decision may
suits
Florida Power Bonds
after the issuance
the Commissioners'
But
be redeemed to not exceed¬
ing 10 years from the date of their
issuance.
In accordance with the
also
is
Kidder, Peabody Offers
time
any
if it elects, may postpone
after which the ■ bonds
Court,
:
friendly : suits to ;
the
other questions.
out
There
thereof.
in
at
redeemable
come
cooperated in the first test case
and
Jefferson,
El
Paso
and
Travis counties stand ready to
test
be
to when the bonds may
as
redeemed, they automatically be¬
Bexar County
County decision.
cooperate
Thursday, March 2, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
906
10
& Co., Harris, Hall & Co. (Inc.),Lee Higginson Corp., F. S, Mose-;
their date.
Conse¬ ley &, Co., Equitable Securitiesquently, all of the bonds which Corp., Hallgarten & Co., Laurence
do
not
by their terms mature M.
.Marks & Cc#, L. F. Rothschild
prior id Oct. 10, 1953, aremot re¬ &
Co., Alex, Brown & y Sons;
questioned by some statements
deemable prior to that date with¬
we
have recently seen in print.
Stroud & Co., Inc., Auchincloss,out the
consent of the:; holders
Parker & Redpath, R. L. Day &
While the Cochran case has had
bonds
years
expressed
belief in the fundameintal sound¬
ness
of Texas credits and insti¬
tutions whose integrity has been
reiterate
to
could
)
after
often
our
redeemed
be
'♦
.
unfortunate
many
feel that Texas
we
thereof.
pressed through their courts arid
public bodies, - are particularly
concerned with questions of good
faith and integrity, and have so
demonstrated this over the years."
Text of Recent
Decision
Comptroller Frank C. Moore
State
last, in the Bexar
(left) and F. Abbott Goodhue,
Supreme Court of
Bexar County, Texas,
the
In
Petitioner;
Texas
1
Sellers,
Grover
Municipal News & Notes
headed by The Chase
making a public
offering of a new issue of $8,330,000 State of New York 1.30%
housing bonds, having won the
A
group
National Bank is
yesterday on
a
bid of 100.3599 for bonds with
a
1.30%
coupon.
The bonds,
dated March 2 and due $170,000
award of the bonds
March 2, 1946 to 1994,
inclusive, are priced to yield from
0.40% for obligations maturing in
1946 to a price of 97l/z for 1993-94
each year,
maturities.
'
redeemable at
The bonds are
interest on March 2,
1964, or any interest payment
date thereafter, all bonds then
outstanding, or all bonds of a
single
maturity
beginning in
and
par
the
order of their ma¬
inverse
They
turity.
exempt from
are
present Federal and New York
State
income
taxes
and
are
legal
necticut
and
banks
savings
for
trust funds
New York, Con¬
in
and
other
certain
States and for savings banks in
Massachusetts.
They
also
are
acceptable to the State of New
York
posits,
for
State de¬
State
Superin¬
security
as
to
the
to
of Insurance
tendent
policyholders, and to
Superintendent
trust
of
trust
and
banks
for
secure
the State
Banks
in
companies.
reported to us by Charles W.
columns
in these
707),
taken
been
as
of
result
a
Texas
000,
in
turned
been
advised
were
them in for the
have
litigation
might
the
in
decision
the
this
Court's
the
with
connection
original decision.
with
Coincident
the
Supreme
Court's current decision, the San
which the firm has pre¬
We quote from the memo¬
part as follows:
randum in
"The
the
most. important
still
are
before
effect this
decision
and
this
of
a
of
has
some
may
be
caused
the
types
in
markets
good
We heard the other
these bonds.
of
(Cochran County)
on
other types
other
destruction
to
relate
In the opinion
attorneys,
callable
questions
us
had
has
of bonds.
day
"bonds issued under
are
block
district
road
of
the
chapter" within the meaning
720, and the five and
period therein provided
which
after
redeemed
be
the
date
this
of
the
bonds
begin to
the
run
issuance
County litigation, were
subject to redemption until
bonds
selling
at
103 V2" which
normally would have sold at 125.
.
by some municipal bond
attorneys
sued
by
to
as
of
status
the
refunding
local
accordance
callable
is¬
bonds
subdivisions
with
in
employed
legal
available
talent
are very
fight
to
best
the
and
we
hopeful of winning the
that
other
callable.
This
determine
provisions
of the Cochran County decision,
j
-
bonds
These
sources
important than the original de¬
some
doubt
whether
issued
call
at
the
had
held
existed
refunding
that
to
as
bonds
thus
might not be subject to
any
time after
date
of
are
not
phase of the matter is far more
cision
as
it
covers
the important
categories of unlimited tax road
and road—district bonds which
run
into
the
hundreds
of
mil¬
:
.
V
amount of
Oct.
from
of
Co.,
Service
as¬
principal
$20,070,400.
,
,
,
Now H. J. Lamm & Co. ;
the
The firm
name
^
of Lamm, Guthy
changed to H. J. Lamm
& Co. effective February 24th oh
& Co.
1943—and
10,
of.
that
including
Public
sumed, of an aggregate
County has filed
JAMES P. ALEXANDER,
was
Heinzelmann &
Chief Justice.
*
»
Schwab
Leslie R.
California
Municipal
their
current
"Economic
Kaiser
partnership in Heinzelmann &
40 Exchange Place, New
with Henry B. H. Rip¬
ley. Paul Heinzelmann has with¬
drawn
from partnership
in the
Ripley,
some
.*
York City,
California,"
&
and New
for
in
*
Freder^
and
to
memorandum,
Trends
>
ica R. French have been admitted
Credit On High Plane
In
Ripley
Admits Partners
Opinion delivered Feb. 23. 1944.
Co., of San Francisco
York, observe that while
firm.;
years prior to the war;
of $33,- California
municipalities
were
and refund the increasing in population and
the original 1925 series assessed
valuation, and were de¬
The refunding bonds creasing
their
debts
and
tax
dated Oct. 10, 1943,
.
and ma¬ delinquencies, the
to
issue new bonds of date Feb. 15,
1944, to take up the refunding
bonds previously issued on Oct.
10, 1943.
The holders of the 1943
series of bonds have refused to
surrender them for redemption,
and
the
Attorney-General has
refused to approve the record for
the
issuance of the new bonds
to
county
be dated
now
proposes
Feb. 15. 1944.
erated
war has accel¬
trends, except with
assessed
valuations
these
respect
to
Attorney-General
is correct in his position.
Revised
Statutes of 1925, Article 720, reads
follows: <
"All
bonds
.
issued
under
this
shall run not exceeding
and may be redeemable
at the pleasure of the county at
any. time
after five years after
the issuance of the bonds, or after
chapter
40 years,
any
trends,
period not exceeding 10 years,
fixed by the com¬
bond
the
house
of the
of
California
subdivisions
/
upon
request by writing
of Schen-
Mark Merit, in care
to
Corporation,
Distillers
Fifth Avenue, New
Service.
randum
contains
ing
the
was
made
a
list
indicat¬
•
350
^
York 1, N. Y;
counties,
bonded
debt,
cities
assessed
,
Maloney & Co., 1
York City, members of the
New York Stock Exchange. Mr..
that
New
and
Maher will act as alternate on
Exchange
the
of
floor
in
trends
Maher will shortly be
Miles T.
in Block,
Wall Street,
In addition to
local
Block, Moloney To Admit
admitted to partnership
credit ratings
districts.
the
;
memo¬
revision
in the
noting
In-
The
upward
various
political
Moody's
by
vestors'
the
E.
v;.VSi*'
Coyne Maloney.
valua¬
for
*
<
tions, populations and tax delin¬
Attractive Situation
quencies, the study also includes \
informative comment regarding
Capital stock of Pollak Manu¬
indebtedifess and finances of the
facturing offers interesting possi¬
State of California, San Fran¬
bilities, according to a detailed
cisco-Oakland Bay Bridge, East
discussion
of the situation preMunicipal Utility District,
Bay
Southern
City
missioners' court."
California
cisco.
and
pared
District of
Metropolitan Water
which may be
Revised
had
be
Chron-
Copies of this booklet may
icle."
credit ratings of a large
number
of
running in the "Financial
ley
says,
resulted in the raising on Jan. 1
school
We think the
as
®
Available On Request
Schenley Distillers Corporation
have prepared an attractive book¬
let
containing
the
first
arti¬
cles in the series they have been
take
and
State
of
the
County of San Fran¬
?;'v
i
& Co., 148
Street, Boston, Mass. Copies
j
had upon
j
by
this
Raymond
study
may
be
..
request from Raymond & Co.
r-•
Article 725,
As to whether the State will re¬
not
authorized the
issuance of the tain the wartime growth which in
the expiration of the 10-year op¬
Therefore, these questions must 1943 series of refunding bonds, a few years has given it an indus-r
tional
date specified in the in¬ be determined and efforts to do and since that Article is a part trial development that otherwise
of the same chapter as is Article would
have
taken
decades
to
this are presently in the mill.
;
struments.
720, quoted above, the refunding achieve, the memorandum says
"With end of interested in¬
The effect of the latest judg¬
bonds issued in 1943 by virtue of that the answer is in the affirma¬
surance
ment is to resolve the question
companies and banks
Article 725 are subject to the pro¬ tive, assuming the correctness of
raised
we
have
Cochran
•'
may
sought to be redeemed—in
instance
company,
Florida
of Article
up
to
Said
expected"
be
thisfinancing-
view.
interest payment date which have suffered because of
on or after Oct. 10, 1953, upon 30
restrictions on home building.
days' notice."
Continuance of the favorable
further
that
from
Proceeds
and of $4,000,000 3 V\ % serial debentures to be sold privately will-
tion on any
that they
reason
advised
been
*
The-refunding be
applied to redemption of all
bonds which the county now seeks
the outstanding funded
debt of
bonds
turing serially from 1944 to 1962,
inclusive, "with option of redemp¬
either
and
paid off or refunded and went on
to say that "many holders of the
called
bonds
have
not
turned
that
this
;
Co.-
&
not in: accord
are
■
motion for leave
bonds.
of
$673,000 of the called bonds
pared.
Court has
just resolved one of the several
important questions posed by its
decision of June 16, 1943, in the
highly publicized Cochran County
bond redemption case. The Court,
in a ruling made on Feb. 23 in a
test
case
* brought
by
Bexar
County, held that refunding bonds
issued by the county in accord¬
Supreme
a
balance of
also
Anderson
Judge
in
We
•
4
Co.,;' Mit-
Nolan & Co. and Harold E. Wood
the
of
&
funding bonds in the sum
the
Cochrdn County decision.
have
issuance
pass
283,000 bonds, such action having
that
the
Evans
A.
chum, Tully & Co., Johnson, Lane^
Space & Co., Moore, Leonard &•
Lynch, J. M. Darn & Co., Folger,-
run
refunding bonds sought to be
with
county
Court
decision
Refunding Bonds
Attorney-General,
decided to have the Court of Bexar County issued
County
Juvenile Home
on
the question at Bexar
issue and, to this end, called for Bonds in the sum of $50,000, ma¬
payment on Feb. 15, 1944, the turing serially from 1927 to 1965,
'
.
outstanding portion of an issue of both dates inclusive.
These bonds were issued under
juvenile home refunding bonds,
dated Oct. 10, 1943.
These bonds Chapter 1, Title 18, Revised Stat¬
utes of 1911,, which is now Chap¬
were made subject to call after 10
ter 2, Title 22, of Revised Statutes
years from date of issue and were
of 1925.
f „
.
issued by the county in connec¬
In
1943
the
Commissioner s
tion with the call for redemption
Court of said county issued re¬
on Oct. 10, 1943, of a total of $1,-
the
Clement
.
(page
supplied us with the text of
the ruling and a copy of a memo¬
randum on the Cochran County
Callable Status of
with
17
Feb.
on
has
County Case Resolves
ance
County Judge,
Bexar
whose advices were given
Antonio, Texas, investment firm
of Dewar, Robertson & Pancoast
New Decision In Cochran
The
Court
given in full text further below.
As
Co.; Putnam & Co., pean. Witter
& / Co.,
Bacon, Whipple & Co.,-
the
in this not from the date of the orig¬
to file inal indebtedness—that is, 1925. which date, Catherine Lamm, a
a petition for mandamus to com¬
Therefore, the refunding bonds limited partner in the firm, be-.
pel the Attorney-General to ap¬ issued in 1943 are not redeemable came a general partner. Offices of
the firm, which is a member of
prove
the issuance of certain at this time.
refunding bonds proposed to be
The motion for leave to file the the New York Stock Exchange;
issued by said county.
petition for mandamus will be are at 29 Broadway, New York
In
1925
the
Commissioner s overruled,
City,
;
Bexar
callable
Anderson,
'
Respondents.
regardless of the specific
date
named
therein.
The Court's current decision is
1943
redeemed.
for
et al,
issue
of
date
10-year
■■
v.
of
from the
date of the creation of the orig¬
inal indebtedness, and not v.from
to refund
Motion No. A-69
Manhattan Company, renew 104-yearold State contract under which the bank continues to act as transfer
agent for New York State.
deemed, begins to
;■/. the
case:
President of the Bank of the
,
be
to
after which the bonds may be re¬
decision of
County
Supreme Court
Feb. 23
.
.
seems
opinion that the five and 10-year
period, provided for in Article 720,
give full text of the
Below we
Texas
-
consequences,
^Petitioner
people, as ex¬
Statutes,
Arkansas
And
Highway Principal
Payments
j
Interest
|
V-Y
Halsey, Stuart & Co., Inc., in a
communication to holders 7 of -the
.
visions of Article
720.
/
this Court in Coch¬
ran
County v. Mann, — Tex —,
172 S. W. 2d 689, all bonds issued
under chapter 2, title 22, of Re¬
vised Statutes of 1925, are sub¬
As held by
to the provisions of Article
720, and if at the time the bonds
are
issued
the
Commissioners'
Court does not evidence its eleeject
; the
conclusions
recent
study
Assistant
Hauser,
of
reau
contained
by
the
classified
Dr.
in
Philip
Director,
a
M.
Bu¬
Census, in which he
137
metropolitan
areas
in the United States according to
T,,ar
growth and
pects.
post-war
pros¬
State of > Arkansas
Refunding?; Bonds,/ of
1941, state that they will pay as
funds are provided on April 1,
1944, the interest coupons then
j
$133,542,000
Highway
due
on
to them
;■
J
-
*
all of the bonds presented
jj
and principal then due of
?
$1,880,000.
.
In addition, the State
April 1,
f
$1,000,000 Term Bonds which are
due April 1, 1972, and which may
also be presented to Halsey, Stuart
j
has elected to redeem 011
&
Co., Inc.
Volume
:
invite bids from
OUR
x
,
Number 4260
159
number of po¬
a
Hassett Named Secretary
To President Roosevelt
tential buyers.
REPORTER'S
A
Power
&
On Feb.
Light Corp.'s
The
furore
touched
off
by the
Pennsylvania Railroad
months ago when it negotiated di¬
rectly with
of
bankers
for the
sale
eft $28,483,000 Penn¬
Ohio&
Detroit
RR.
issue
an
sylvania,
bonds
re-echoed
through the
in¬
vestment banking world early this
week.
'
hob
the
with
officials
trunk line's
time, charging
the
at
vorable
suit
panies.
that it
was
would
ize
bids,
against
volved,
have
the
their
now
and
the
bonds
are
"M
out
to
the
fol¬
appointment
him
at
Hassett,
63,
Field, Vt., succeeds the
Marvin
H.
Mclntyre.
His
ap¬
in¬
di¬
has had three
taries
that the
years
$10,000
President
a year secre¬
authorized by law.
as
The
se¬
tains
of
of
Milwaukee.
conducted
business
'
-
in
his
Mil¬
■
' '
''
——j
';
Common stock of the A. E. Sta-
ley Manufacturing Co. offers in¬
teresting possibilities according to
a circular issued
by Cruttenden &
Co., 209 South La Salle St., Chi¬
cago, 111., members of the New
York
and
changes.
sheet, may be had
from Cayne, Ralston & Co. upon
request.
/>"■v/'Z' /
•-/■
///
may
be
Chicago
Copies
had
of
Stock
this
Ex¬
circular
from
request
upon
Cruttenden & Co.
/
.
/The
bankers, in this instance,
acting in the capacity of stock¬
are
holders and charge that the man¬
ner" in
which the sale was ar¬
ranged,
in
the
New Issue
procedure long followed
a
railroad
field, resulted
in
$8,330,000
loss of $1,000,000 to Pennsylvania
stockholders.
It
/
this
was
of
piece
under¬
STATE OF NEW YORK
writing which finally forced the
hand
of
the
Interstate
Com¬
merce
Commission and brought
about
hearings
of the
Middle Western banking
the
on
demand
1.30%
interests that all railroad financ¬
ing
be
done
a.
basis similar
the
to
policy fol¬
Housing Bonds
competitive
on
Dated March 2,
1944
Due $170,000 each year, March
2, 1946-94 Inch
lowed in the public utility field
under the
rule
Thus
/
promulgated by
Securities
the
•Commission.
and
Exchange
and accrued interest
par
outstanding,
all bonds of
or
March 2,
on
1964,
or
on
interest payment date thereafter, all bonds then
any
single maturity beginning in the inverse order of their maturity.
a
,
the
far
Redeen lable at
Interstate
Com¬
merce
Commission has not handed
down
its
case,
in
Interest Exempt
ruling in the railroad
but since testimony has been
for
months
some
should be available
The
current
soon.
suit
seeks
to
es¬
tablish whether officials and
di¬
with
rectors
small
ownership
great corporation
a
to
treat
"financing
prerequisite
to
be
Acceptable to the State of New York as security for State deposits, to the Superintendent
of Insurance
to secure policy holders, and to the
Superintendent of Banks in trust for banks and trust companies
in
continue
can
as
personal
a
passed
out
to
MATURITIES
their banker friends regardless of
the
to
cost
New York State Income Taxes
Legal Investment for Savings Banks and Trust Funds in New York, Connecticut and
certain other States and for Savings Banks in Massachusetts
decision
a
from all present Federal and
stockholders,"
-plaintiifsu-
say
the
(Accrued
*
AND
interest
/; ■■■,/
:x
to
PRICES
be
added)
"-. /.
-rv/
«\y.
Approx. Yield to
Opt. Date
~
^
..
Due March 2
/
Button, Button, Etc.
1946
Banking firms whi2h make a
specialty of participating in siz¬
able
secondary
offerings
had
something of a mystery on their
hands during the last iew days.
or
But
more
where
to
who
it
1.19
1.22 M\
.60
1974-76
101%
1.22
1.24
1.26
1977-78
101
1.24
100%
1.27
1.28
.75
/ 1981-84
100
1.30
1.30
1953
.80
1985-86
99%
1954
.85
1987-88
99
1.36
1.33
1955-56
.90
1989-90
98%
T.39
1.34
1991-92
98
1.41
1.36
1993-94
97%
1.44
1.37
/;#//i
1957-58
1959-61
/ik
1.00
the
have
had
1962 64
l/';:
fact
that
The abovei Bonds are offered
when, as and if
:
,.j;
.
,
stock
But as the old
saying goes, "the
proves the rule."
So now-we find Engineers Public
Co.
Hallgarten & Co.
j
Barr Brothers & Co.
•
The Marine Trust. Company
of
Pressprich &Co.
'
'
"
//: /'/////.//:*
■■
The Northern Trust Company
1
to
a
non-utility,
industrial
and
Gas
is
Manufacturers and Traders Trust Company
: /v///-/ y/-////^//
Buffalo
Mercantile-Commerce Bank and Trust Company
But report now
First of
;
White, Weld & Co.
W. E. Hutton &To.
Michigan Corporation
Schoellkopf, Hutton & Pomeroy
Incorporated
The Public National Bank & Trust
New
C. F. Childs and Co.
Incorporated
F, S. Moseley & Co.
/;.//•;/.//.
Hornblower & Weeks
-..';;/
.
Geo. B. Gibbons & Co.
York
Arnhold and S.
Riter & Co.
of
A. C.
Allyn and Co.
March
//.,./"/;.
'■
'
Laurence M. Marks & Co.
Reynolds & Co.
Schwabacher & Co.
(:i;
/' /'■■
Albany
Green, Ellis & Anderson
of
New York
Edward Lowber Stokes & Co.
Francis I. du Pont & Co.
Incorporated
Bleichroeder, Inc.
A. G. Becker & Co.
Schmidt, Poole & Co.
Incorporated
York,
State Bank of Albany
Hannahs, Ballin & Lee
'
2,
Otis & Co.
1944.
'Vi
■■■■-
Ernst & Co.
Craigmyle, Pinney & Co.
Philadelphia
"
.
N. W. Harris & Co. 1882. Incorp. 1907
Company National Commercial Bank & Trust Company The Commercial National R»nk & Trust Company
Incorporated
New
has it that En¬
gineers Public Service will shortly
as
Stone & Webster and Blodget
Incorporated
selling
requirement.
Organised
•
;
wholesale
users,'it is exempt from compli¬
ance with the competitive
bidding
Harris Trust and Savings Bank
Chicago
1
Hemphill, Noyes & Co.
of
Natural
Blair & Co., Inc.
'
■
///'/
L.F.Rothschild & Co. -/;/
Gas Co.
only
'
.
Kidder, Peabody & Co. ./Estabrook & Co.
dispose
shares of
stock of El Paso Natural
El, Paso
/
Chemical Bank & Trust Company
,
Manufacturers Trust Company
/
Buffalo
R. W.
'
INC.
preparing to
of its holdings of 51,357
as
f
Times
exception often
classed
General of
or
/ As a general rule, utility hold¬
ing
companies
having
sizable
blocks
of
subsidiary stocks
of
Which they must divest themselves
under the operation of the Public
Utility Holding Company Act, are
found applying to the Securities
and Exchange Commission for ex¬
emption' from Rule U-50 which
provides for competitive bidding.
Since
t
definite
any
the
issued and received by us and subject to approval of legality by the Attorney
It.is expected that Interim Certificates will he delivered in the first instance, pending
preparation of Definitive Bonds.
the State of Neio, York.
v/,•
•
The Chase National Bank
common
./Ml
'/•;':-:^//////
originated.
There Are
Service
1.33
/
100,000
everybody seemed to know that
of
102
/
1979-80
the offering was coming, no one
idea
1971-73
of the stock.
despite
appeared
1968-70
.50
1952
banking and/brokerage
fraternity "had wind" of the
shares
1.16
1,1.15%
.70
entire
;
102'A
Maturity.
1.13%
.65
not long bfore virtually the
of
103
1950
got around fast, and it
offering
1965-67
.1951
■///;'''/*//■ ;■/,;//////'
-prospective
.40%
March 2; 1004
1949
the well-known
"grape¬
telegraph word got around
that there was a. large block of
U. S. Steel Corp. common stock
coming out on the secondary mar-,
was
Price " ' "
Due March 2
.45
I Via
Word
Maturity
1948
vine"
ket.
Yield to
*
pointing to increased
balance
a
Co.
&
Mfg. Situation Interesting
Cleveland, Ohio/members of the
Cleveland Stock Exchange. Copies
of the circular, which also con¬
several
was
thereto" he
'
& Co., Union Commerce Building,
pointment marks the first time in
a
In¬
and prosperity at the
the war, according to a
earnings
close
late
North
they
premium
averaging a point or so above the
offering price of 104.8257.
rectors.
in this field
a
of
native
a
L.
Sholts
waukee.
circular issued by Cayne, Ralston
"Mr.
the
engage in a
Mr. Sholts
to
investment
own
the postwar outlook for synthetic
tires and the sensational advance
presented
Dalton
Prior
The Mohawk Rubber Company
offers an attractive situation, with
the
Co.
vestment
curities business.
Attractive Situation
from
continue
command
Sholts has formed
members of the Asso¬
were
recently associated with Gardner
office.
people seeking to real¬
quick-turn profit appears to
to
(Special to The Financial Chronicle!
WAUWATOSA, WIS.—Budd
Mr.
and
F.
ceremony arranged
by
Mr. Roosevelt in the Presidential
of
Hassett
Press
Washington
staff
during the first World War."
Washington
Hassett's
were
Mr.
ciated
surprise
the
in
Early
say:
r.
papers
buyers.
not
Sholts Inv. Co. Formed
said
advices
"Post,"/which also had
lowing to
consider¬
interest from such
Press
Washington
of offering
attract
Early,
be evident from the fact that
filed
roads
two
officials
a
the type
Stephen
Associated
sub¬
a
pointed
Bankers
which
hands
that they had ignored more fa¬
indications,
of the larger life insurance com¬
That
big
all
Secretary
stantial portion of the issue has
found its way into the portfolios
able
Cleveland bankers who raised
.
From
"Both
Hassett,
newspaperman, was ap¬
pointed a full Secretary to Pres¬
ident Roosevelt.
He has been an
assistant to White House Press
bonds, brought out late last week,
proved a quick mover, in line
with preliminary predictions.
some
19 William D.
veteran
$16,500,000 of first mortgage 3%%
REPORT
are Early and Maj .-Gen.
Edwin M. Watson, who also serves
as chief military aide.
,
Quick Premium
Florida
other two
•
fikij
»
t
.
,•'/>■
*
•*
.
For Taxation
four
following
the
of
consists
taxing gains and losses on
of common stock, in order
of
sales
to
adoption of a new meth¬
The
2.
od
escaping
corporate
individual in¬
taxes and to
allow the indi¬
prevent undistributed
earnings
come
the corporate
losses.
of the individ¬
The reduction
3.
benefit of
stockholder the
vidual
in the higher
ual income tax rates
brackets.
individual in¬
income from
rates
tax
come
on
has earn¬
inequality
similar
a
corporation has losses.
exists if a
If
inequality thus
does
corporation
a
but
ings,
nership form and has losses,
losses
are
deductible from
such
the
In
corporation, how¬
other income of the partners.
the
of
case
a
de¬
This
not only violates the principle of
equality of taxation, but obviously
be
cannot
losses
the
ever,
ducted
by the stockholders.
results
in
the
much greater injustice
the
corporation
than
taxpayer
large
If
small
taxpayer.
loses ten dollars
a
holder
bracket
share,
a
a
100 shares in the 20%
$200 greater taxes than he
if he were conducting the
pays
would
of all corporate
exception of a very
abolition
The
taxes with the
corporation income tax.
small
When
adopted,
originally
substance
were In
mechanism for col¬
a
normal
individual's
the
lecting
since divi¬
dends received from corporations
the
at
taxes
source,
exempt from normal taxes
in the hands of the stockholder.
were
In 1936 this exemption was
partner, whereas a
in the 90%
a
as
stockholder
similar
elimi¬
nated, and as a result there has
been
brought about what is in
reality double taxation of corpo¬
rate earnings.
The effect of this
is to completely violate all princi¬
ples of equality of taxation. If a
corporation earns one dollar a
necessary
of
the field
public utilities, to other monop¬
by a sale of part of the stock.
However, in the case of corpora¬
in¬
equalities have been accepted by
our country in large part because
cf the fallacious personification of
corporation. We have come to
think of a corporation as a profita
which
instrumentality
making
such
situations
olistic
for
as
ration
ex¬
tions
the ownership
ample arise from
committee
of which
writer was a member:
of
should be taxed as a separate en¬
tity. In fact, however, the cor¬
poration is only a legal form
through which individuals invest
their money. It is the individuals,
in the last analysis, who are the
ones who
alone bear the burden
of taxes.
individual
While admittedly an
the
a
that
recommend
do
"We
strenuous effort be made
a
tax to unincorporated
* So far as possible,
business should be taxed
tion
income
stockholder's
the
administration
of the tax.
Stockholders would have to be
*
*
of
tax return and the
advised
by
the corporation of
separately.
Indeed, an effort their share of accumulated earn¬
might be made to isolate and tax ings or losses for each year, and
the monopoly productions and would have to include it in their
transactions
within
a
single return. In addition, when a stock¬
each
though this may of
to be impossible.
business,
course
prove
would include the
stock sold
able
the
cents he would
90
as
a
illustrate
corporation"
in the
of a
case
distributing all of its earnings in
excess of income taxes, the effect
is that taxes are both greater than
other
and
income,
the
taxes
also
disproportionately high in the
of
case
on
the
small
tion
earns
two dollars a
share and
the same dividend of 60
cents, retaining the other 60 cents,
a 40% tax will in effect be paid on
the
second
dollar by both the
stockholder, which
is in the
one
the other
greater and in
case
less than the indi-
case
corporate
this _rate
to
tax
therefore
be
to
appear
ytpuld
the first
tax program to
eliminate the existing inequalities
in the taxation of corporate in¬
step in
sound
a
come.!'
.
*
*
The rate of return that is
the kind of tax that we propose.
not drawn to it primar¬
are
Government
a
of this
proposal
on
is, of course,
revenues
major factor which must be con¬
sidered, Upon analysis it does not
seem
serious
as
might first
as
ap¬
In most cases, if corporate
pear.
earnings
before
the
remain
taxes
the increased earnings after
same,
the
be distributed to
taxes would
stockholders, and the loss of the
corporate
large
a
would
tax
extent
offset
be
the
bv
to
additional
'"ndividual taxes, the exact amount
of the offset, of
A BINDER
For Your
Copies of
in those
even
"THE CHRONICLE"
practical stiff back string
especially designed
to
hold
issues
current
of
"The Chronicle"
*ur
would be largely offset
adoption
Strings
in
Each
Binder
profits
as a means
accumulated
profits
upon
herent in
an
tax,
accordingly
gain or loss. Likewise,
corporation had sustained
the stockholder had
his capital
the
if
(Further¬
further.
even
'
.:••••• -v.-
••
;"
Price '$2.50
Plus Postage
,
The CHRONICLE
(7), N. Y.
Thereafter
ITh's.was
corporations
on
of
and losses on sales
stock in order to pre
common
vent undistributed
ings
eornorate car.n«
individual
escaping
income
nnde"
p.
■■
is
over.
m
of
The Twentieth
Taxation (1937)
430.
Fvc0<;s
the> R»"»nue 4ci<! of 1940-ac>(
The
Shoo'".
and
X,
war
■
Consent
Contemporary
2k'1:
t.T :.
r':!
i!
of
Problems
provide a satisfactory solution
the problem we are faced with.
not
to
On the onc hand it. would
and
undistributed
profits
be
it must
tax
complete
complish
of
earnings. This would be an
tension of Section
Come
Tax
ex¬
102 of the
In-
which imposes
Law
a
penalty if earnings are withheld1
for the purpose of avoiding sur¬
taxes
in
its
most
the
on
stockholders./Even
present form it has proved
unsatisfactory, and it should
be restricted to closely
panies rather
suggested.
The
held com¬
extended as
than
^
1
.
,
for this is that it is
reason
impossible to
devise any
precise
test of where the line is at which
accumulation
unreasonable
an
of
profits
commences.
In
effect,
therefore,- it would mean that some
Government agency would have
to decide in each particular case
to what extent accumulation or
of
distribution
profits
was
so¬
this would
take from private management of
business one of its major func¬
tions Furthermore, the adminis¬
trative problems in creating ma¬
chinery to provide for prompt de¬
cisions by the Government before
action must be taken by the di¬
rectors, rather than decisions by
desirable,
cially
courts
some
and
three
of
In
four
or
after the event, as at
insoluble.
addition, even if all
be
could
difficulties
these
years
present are
out, the major objectives
would still not be attained in that
worked
undis¬
and
between
distributed
stockholder the benefit of the cor¬
tributed
profits unless the tax
high as to force 100%
while
corporate losses could not
of by the stockholder.
be availed
'
D. Another solution to the prob¬
were
so
lem would be to value all com¬
income
taxes, distribution of earnings remaining
mon stocks at the end of each year
other than a small privilege tax, after the 5% privilege tax, and on
and to treat the increase or de¬
are
to be abolished, equality of the other hand even if that were
the
stockholder crease in value during the vear as
taxation will be attained in the accomplished
case
of corporate
earnings dis¬ would Still not get the benefit of profit or loss to the stockholder.
Wholly apart from the broader
tributed as dividends.
However, corporate losses.5
Moreover the suggestion of com¬ question involved in this proposal,
a
fundamental problem still re¬
the taxation of capital
mains untouched, namely, how to pelling a 100% distribution of cor¬ namely,
which will be discussed
effect such equality with respect porate earnings is unsound if such gains,
to
undistributed
earnings' and distribution must be in the form hereafter, this proposal seems un¬
losses. If this is not solved, Undis¬ of cash; the 'adoption of such a satisfactory for two reasons.
The one is the impossible ad¬
tributed earnings
would Escape policy, by preventing corporations
ministrative task of making such
individual income taxes,
-v
porate losses.
corporation
from
retaining
any
portion of
been tfs baf¬ their earnings, would to a very
fling to economists as the prob¬ great extent' put an end to the
lem
of squaring the circle has
This problem has
this
Under
sonal
the
method
would
holder
income
treat
his
as
corporation.
This proposal is
per¬
losses of
the profits or
share. of
stock¬
proportionate
his
the
Burden of
97 and fol[
5 K'mmel, Postwar Tax Policy and Busi¬
ness Expansion
(1943), Brookings -Institu¬
tion
Pamohlet No.
53.
favors the pdonVon of an undistributed Profits tax simi¬
lar to that in England w'th a normal tax
rate of 22%: pages 15, 41.
This conclu¬
sion is justified bv the statement
' ,
"British experience indicates that a high
4 Shirras
British
.
earlier
the Court as
decision.
L
presently
the
consti¬
would
be
If not a
amendment
,
best
poration which determined to re¬
large part of its profits, this
proposal would result in iniustice
a
to stockholders who did net
money
to
phy
have
the tax
3 Page
410.
The other is that even
rations.
if
surmounted, the
stockholder in a corporation which
had no market or only a very,
narrow
market for its stock and
this
be
could
-
v
British
contrarv:
"Successive
opinion,
provisions
d'str'bute
■
,
Acts
Finance
the
against
w'thin
derived
shemhnlders.
reasonable
a
bv
the
Although
compelled to sell a part
for his tax on
the unrealized gain in a particular
year,
would in many cases be
forced to sell such stock at a sac¬
who
rifice
the
the
time
romnanv
to
its
ago
on
undistributed
ma'n
the
nrof'ts
same
JWwecn _th°
if
to
two
these
tvnes
that ,a tax
sale of
the
true
Y
6 The
••oli'"™
A'•*.'
■■■
Twentieth OenhYv Fimd 'Sun-'eV of
w'lh resnpetfamthis
of- undistributed
tofm.
ft S
foilc'!
h»Fotf«»s thof an
,uyha
,cn-«
ri.„-,rvpc;
TH„Mer>s
niire-
bn raa/l° to devise
bv which annual
arc-M.ar) ^-ftlue of s^ock-
jrrttinT
differences
income
ooniz
appga^'.that
Taxf»tfon'«' c^elus-'on
dividends, ovo*
w-nlrt
tax
might^e'^posed;
stock p|Kpo^pora-
might
it
"where
tbece provisions
of
its
;
tic'^s
intentionoj
fhn "•pn<u-al.fi"ld of
below
far
price
We come now to a
E.
avo'dance of sur¬
tax m"ch more difficult than formc'v 'L
•wo'id ha idi« to rr^tend th"t the rat'o of
make
was
of his stock to pay
value.6
in
1'n
ran
income
tax
t^e
returns."
s'ock-
(Page
were
'
page
100,
f Surras
Note
1.)
&
Rostas,
— <**"
supra,
effort
can
never
r,o-,'lv"'od
attain success.
that
<
M
evaluation annually for all corpo¬
v/ (.i
fifth solu¬
•' tion to, the problem. Mr. George
however, is
O. May suggested; over, 20 years
:%•';
the
.1
made
special
practice of us'ng
the device of undistributed profits tax
on
undistributed-profits'as a means of
avoid'ng the pavment of surtax.
It is
now illegal for comnanies owned
br less
than a certain number of persons not to
the
ebminatcd."
(1943)
of
disposes
22.)
The
'
.
at the
undisprofits tax question." (Page 16,
Note
to
income
Secondly, in the case of a cor¬
sufficient
largelv
t rbated
Firstly, under the last decision
tutional
or
source
unsatisfactory
tax collected
standard
normal
constituted might now reverse
The
Ros*as,
(1943), page
'/:-■•
*
,
; :.
of the Supreme Court
However,
and
Taxation
low'na.
for three reasons.
tain
I
/
not ac-j.the amount of profits reasonably
equality withheld would be free from tax,
allow the individual
taxes and to
neeessarv.
attempt should be
pmnosed
rfr-«»<5
2 Ofi.fl
T"W
an
.Fi"*d gntvey
Centurv
J
f
the
ished .whop
Vol.
A
profits tax
excess
intended
The
profits only.%
w^r
should therefore likewise be abol¬
at
25 SPRUCE STREET
reach
to
Address
NEW YORK
pro¬
Obviously
tax.
the present tax is
more
Chronicle"
of taxing gains
,
dealing with
where such a tax exists the <inthe subject, this proposal would
eoualities above shown
are
in¬
probably
be
unconstitutional.
creased
Accommodate 40 Sections
zof vVThe
through
second
the
of
does not deal with the corporation
excess
40
whatever loss
cases
posal discussed below.
'
The preceding deals only with
the corporation income tax and
binder
■
in. effect
of Government revenue would oc-
the
A
course,
rates
pay¬
in
found to avoid the difficulties in¬
losses which
depending
for the
individual. There might be a ten¬
been to mathematicians.
Various
dency for some corporations to
solutions have been suggested.
accumulate more earnings if; the
A. The first is that corporations
corporate tax were reduced, but
should be taxed like partnerships.
the
upon
cash
well as being open to other ob¬
jections.
. '<■
No
satisfactory way
can
be
of capturing high
already taken advantage of, these
profits from risky enterprises,
would have to be ascertained and
or windfalls, or inflation profits.
added to the sales price.
A sale
It. if were not far the monopoly
at a profit might thus be turned
problem, we should not recom¬
into a sale at a loss, and vicemend the tax at all, for we are
versa. The resulting complications
impressed by its theoretical and
involved in the preparation of in¬
technical difficulties."3
dividual returns would be wellThe current -( controversy
over
nigh insuperable.
the .so-called renegotiation of war
In the light of these three ob¬
contracts law—which is a mis¬
jections, this proposal would seem
nomer for a 100% tax on "exces¬
sive profits" from such contracts impracticable.
B. Another method of solving
—has brought out how great these
difficulties in fact are. However the problem which has been wide¬
if an excess profits tax of this ly supported is that of an undis¬
nature, is not adopted, the exten¬ tributed profits tax; Such a tax
sion of price fixing is inevitable, was in effect for 1936 and 1937,
and certainly our American ex- in addition to the corporate in¬
In England it is the
erience with rate regulation gives come tax.
sole method of corporate income
us little confidence in this alter¬
native.
Yet we cannot hope to taxation, although it is not usually
an
undistributed
profits
maintain capitalism without find¬ called
ily
If
effect
The
pays
small and large
income
taxpayer.
Similarly if the same corpora¬
of the
reduction
The
These figures
partner.
that
pay
.
scrip which would be
in
which
rejected.
Ac¬
called 'fair' should vary with he had already been taxed.
C. A third solution to the prob¬
cordingly this amount would have lem which has been advocated is
the degree of risk. • * *
to be computed and deducted from
.v "We have no idea how much
the .imposition of a penalty tax
the sale price before computing
revenue
can
be expected from
upon unreasonable accumulations
*
•
form.
a
plicated for possible adoption as
corporation tax stockholder in contrast to a part¬
of forty cents on it, and distributes ner has little, if any, voice in the
decision as to how much of the
the remaining sixty cents, an in¬
dividual subject to a 20% tax on income of a given year should be
the dividend pays a tax of 12 held in the business, and while he
cents. Thus in effect he has paid likewise is free from personal lia¬
bility for the corporation's debts,
a 52% tax on the dollar earned by
corporations
are
the corporation for him.
If the these real distinctions between ing some solution to this problem. tax.4 English
the
two
forms
of organization
One other tax oh corporations subject to an income tax on all
same business, had been conducted
do
not justify
the which now exists, namely the cap¬ profits at the same rate as the
in the form of a partnership, he nevertheless
would only have paid a 20 cents existing great difference in tax ital stock tax and its implement individual's normal tax, but when
treatment
of
stockholders
and the declared-value excess profits any profits are distributed the tax
tax on that dollar. Even an indi¬
vidual in the 90% bracket would, partners. At most they would jus¬ tax,
should
unquestionably be paid on such profits is treated as
a
tax on the stockholder with¬
'
>
by paying 54 cents on the dividend tify a tax at a very low rate of eliminated., v
held at the source.
k
i
n.
received, be in effect paying a approximately 5% for the privilege
total of .94 cents as compared to of doing business in the corporate
This alternative likewise does
The adoption of a new method
share and pays a
with
varying amounts
to
each
stockholder
depending
upon the amount of his income
tax; and the balance would be
automatically
convertible
into
stock of the corporation. This pro¬
posal, while ingenious, is too com¬
holder sold his stock the value of
the
him
paying his tax. One such
now under consideration is
plan
Thirdly,
furnish
of
to issue
this proposal would
materially complicate the prepara¬
to ap¬
«,time
same
means
stockholder.
great hardship to the
but still be tax¬
able to the stockholder and at the
any
probably be at a price far
below true value, with consequent
the
ply
firms.
narrow
very
would
supervision
the
under
prepared
a
than cash,
form
market
market,
such
sale, if it could be effected,
with
forced
The outlines of such a tax were
■
cash could be realized
without
or
suggested in The Twentieth Cen¬
tury Fund Survey of Taxation,
We
$900 more;
wholly unjustified
These
cor¬
taxes
income
poration
business
bracket pays
If the stock of the corpo¬
had a ready market the
ing, which now exists in
to
business is conducted, in part¬
a
of
risky enterprises.
new
if
exist
to
A reduction in
4.
stockhold¬
possibility of desirable corporate
expansion.
1
Accordingly, various alternative
mechanisms have been suggested
whereby the distribution of earn¬
ings could be made in some other
their share of the undistributed
profits.
of natural resources.
assumed above.
Not. only
The abolition of all corporate
1.
taxes, with the exception of a very
small corporation income tax.
„•
vidual rates of the two
ers
planks:
:
on
of
type
new
a
profits tax as an alternative
applying government price fix¬
excess
Stockholders
(Continued from first page)
develop
to
made
A Post - War Program
Of Corporations And
Thursday, March 2, 1944
COMMERCIAL & FINANCIAL CHRONICLE
THE
908
this
Volume 159
there
was
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4260
profit which
a
was
and be increased in boom
attributable to the accumulation
and
of undivided
,,
periods
depression
in
decreased
be
profits by the
cor¬
periods. Nevertheless within limits
poration and that the sale
was
this
made to avoid the imposition of
the tax which would be assessed
such profits if distributed as
on
''
dividends."?
The
first
of
this
suggestion
might well be adopted and
veloped into the following
gram:
r
-
,
-
(a) Whenever
sold at
profit
de¬
pro¬
stock is
common
profit, the portion of the
to the amount of earn¬
a
up
ings accumulated by the
undesirable.
not
Boom periods are the very time
when the Government should en¬
deavor to increase the
its
reduce
and
taxes
half
is
result
yield from
debt, while
periods it
should relieve the taxpayer, thus
increasing his purchasing power
and thereby lessening the defla¬
tionary effects of the depression.
Yet if capital losses of all types of
depression
during
assets were allowed as deductions
from
dinary income. The balance of
the profit, if any, should be taxed
the yield
plight in pe¬
riods of depression become wholly
inadequate.
1
However, the suggestion under
as
consideration
tion
&
during the period the stock
held, should be taxed
was
| ii
corpora¬
as
or¬
capital gain.
A corresponding procedure
should be adopted in the case of
a
(b)
the
sale
at
corporation
of
loss
a
which
stock
had
of
a
accumu¬
lated losses.
(c)
v
to
To
;
the
enable
make
the
stockholder
calcula¬
necessary
tions, corporations should be
re¬
quired to inform their stockhold¬
ordinary income,
from the income tax
of
limiting
that
this
of the
capital losses of common stocks
which
represents accumulated
losses of corporations will have a
treatment
to
portion
lesser effect in reducing
far
rev¬
Consequently it would
enues.
ap¬
that this objection to the pro¬
pear
posal under consideration is not a
very serious one.
A third objection to taxing capi¬
annually of the amount of ac¬
cumulated profit or loss per share tal gains generally is that they
during the year.
7"-.'A'1 are affected by a change in the
If an asset
(d) In the case of a stockholder value of the dollar.
buying or selling during a year, cost $100 and is sold for $200, but
ers
the accumulated profits
losses
or
for the year would be presumed
to
have been incurred propor¬
tionately throughout the
days within
ignored.
year, and
month could be
any
To
illustrate, this proposal, as-?
stockholder purchased
a share of stock in
corporation X
for $100 on the 1st of April, 1941,
.
.
sume that a
and
sold
July,
the
the
stock
1943 for $150.
of
sake
the
on
1st
of
Assume for
simplicity
that the
corporation reported to its stock¬
holders
that
the
undistributed
earnings per share for each of the
1941, 1942 and 1943 was $12.
years
The stockholder in
profit of $50
a
of
amount
on
question had
his share.
accumulated
The
earnings
during the period held was $8 for
1941, $12 for
the full year 1942, and $6 for the
six months in 1943, or a total of
$26 per share. This amount would
accordingly be taxed to him at
ordinary rates in 1943, and the
the nine months in
balance
of
his
$24, would
gain.*;,
profit of $50, or
taxed as capital
be
7
r.
(
lem
above
in
presented
that
it would result in
in
un¬
distributed corporate profits being
ultimately taxed at ordinary rates
stockholder, and would cor¬
respondingly give the stockholder
ultimately the benefit of corpo¬
to the
losses.
rate
What, if
advanced
objections
this
to
solution
that
increase
an
be
can
of- the
since
the
in
it
tax
rate on a part of - some capital
gains, it is subject to the argument
advanced against general taxation
of capital gains, namely that it
constitutes
on
deterrent
a
to accentuate the
to
selling
swings in
secur¬
ity prices.
This
objection admittedly has
some
validity, although it has
probably
been
overemphasized.
To some degree the desire to avoid
the payment of tax is without ra¬
tional basis for the tax probably
must be paid sooner or later if
the profit is to be taken, but un¬
der certain circumstances the im¬
position of
tax
a
undoubtedly is
son
on
a
the
dollar, although the
involved
There
is,
however,
another
aspect of this objection. As a re¬
sult of inflation real loss occurs
to holders of fixed
bond
a
obligations. If
$100 and is sold for
cost
capital gains
justifiable rea¬
How¬
for postponing selling.
be
weighed
of
advantages
the proposal.
Another argument against tax¬
ing capital gains generally as or¬
dinary income is that since jus¬
tice would then require capital
losses to be deductible from ordi¬
nary
income,
revenues
7 George
Accounting
page
156.
the
would
O.
•
n
.
.
would
be
added
ported
to
next
as
an
figures
stockholders.
In
ad¬
re¬
this
the stockholder's task would
way
be
simplified although some minor
injustices might .result.
There
the
is
final
a
proposal
objection that
does
break.
produce
complete tax equality and permits
undistributed earnings in part to
escape
individual income taxes.
This
is true.
One way in which
in
value
for
many
rowing money from the Govern¬
ment without
paying interest.
It
obviously impracticable
work out any method of
pay¬
ment of interest, but it should be
noted that this advantage would
to
difficulty under the limited pro¬
posal under consideration which
is applicable only to the portion
of capital gains and losses on com¬
stocks
mon
cumulated
attributable
earnings
Therefore it is not
to
ac¬
that
the
the
jections, including that of unduly
complicating the individual's in¬
losses.
or
such proposal.
However,
taxation of capital gains
that they do not constitute true
.s
income.
Whatever ;validity
may
this
have, with respect
capital gains in
likewise '■«, would not
solution
no
of
to
undistributed
e
the
Section
to
ever
earnings
ordinary
as
income
;
.
constitute
to
method.
a
achieving the maximum tax
equality which is practicable be¬
tween
tions
stockholders
and
other
of
corpora¬
recipients of in¬
law,
by holding the stock until death,
the taxpayer would avoid paying
the income tax
uted
earnings.
the undistrib¬
on
This objection
and should be met
ment
for
to
the
by
an
can
amend¬
law, which perhaps
reasons
might
constitutional
have to
be part of the
law, imposing
estate tax
tax equal to that
a
which the stockholder would have
paid under the proposal if he had
sold the stock the day before his
death at a price equal to its value
determined for estate tax pur¬
poses.
by
corporations
holders.
This
to
is
their
stock¬
however
In the case of corpo¬
rations whose fiscal year is not a
calendar year or in those cases
which would be final
stockholder
was
as
far
as
concerned
the
and
_
"
'
•
'
mar¬
More money
reduction
tax
come
of individual
rates
-
in
the
in¬
higher
brackets.
Income tax rates in the higher
brackets have reached
where
ish
the height
work.
to
motives
If
•
mankind
entirely by- unself¬
and
influ¬
not
was
enced by the rewards for
activity,
this would not be the case.
present
are
tor in
overhead tend to
can¬
So
a
Kroger there is
a
[The
time
at
For
wide
a
if
even
and there is
injustice that you
mit." 8
The
taxation
two
has
one
decide
what
taxation
proportional
suggested, it
economists.
as
or
was
are
in what
NEW YORK 5, N. Y.
of
SUGAR
progressive
Exports—Imports—Futures
ac¬
for fixing the
Seligman states:
usual
;'7-,
'
'
-
arguments
manner
Established
the principle
definite scale of progression
New
York
Stock
.
York
York
New
no
mo*v.>k
Members
New
Since there is
1850
H. Hentz & Co.
whatever." 9
."
DIgby 4-2727
progressive
Theory itself cannot determine
any
7:.«7''- Si../7 ,'
almost entirely des¬
progression ought to be ac¬
tually carried out in practice.
exact method
Curb
Exchange
Exchange
Chicago
determining what the progres¬
sive rates should be, a decision
New
Orleans
And
Exchange
Cotton
Commodity
of
Exchange,
Board
Cotton
other
of
Inc.
Trade
Exchange
Exchanges
the
by at¬
tempting to balance the need of
first
opposed by most
M'Culloch expressed
the principle of ability
N.
Quoted in Sir Josiah Stgmp, The Fun¬
damental Principles of Taxation (1936) at
page
Tax
Y. Cotton
NEW
8
40.
9 Edwin
was
99 WALL STREET
com¬
of
When pro¬
contrasted to
taxation,
LAMBORN & CO.
i:
..
no amount
against
this
any
dif¬
titute of foundation, it is not a
simple matter to decide how far
revenues,
gressive taxation,
the
at
must therefore be reached
%
exact rates should be?
found
Professor
"While
thus increase the effect of the ex¬
can
been
in
their
universally
now
7 advanced
will result in
more income being brought into
the higher brackets, which will
How
is
expressed
as
rates.
they
will be increased.
views
do not necessarily
coincide with those
may not com¬
of
Thursday.
Whyte
—Walter
'
proposals suggested
isting rates in destroying the in¬
centive to further activity.
Con¬
sequently the necessity of reduc¬
ing rates in the higher brackets
next
justified by the doctrine
of ability to pay, but no formula
V
the
,
•
.
principle
cepted
When income tax rates
adopted,
.
without rudder and
sea
pass,
activity has been
practical purposes elim¬
all
will exist next
Chronicle.
"When you abandon the plain
principle of proportion you are
■iy
ment to further
inated.
buying except at
prices.
How long
of the
They are presented as
those of the author only.}
stop at 31.
•
bringing forth his greatest
the induce¬
seem
in
article
the early 19th century view when
he wrote:
: •
At the
material fac
push stocks
down and bidders don't
keep interested
minor reaction is
first, hence buying
ference.
a
energies.
If
similar
Of course, between Case and
stage
reach 93% at $200,000,
are
a
32 with a their own
With Case's usual this condition
advice at 32 with
even
only
financial reward is
for
in
they materially reduce the
actuated
ment,
is
Kroger is gradually build¬ thing.
ing up for some kind of an
advance
if
More
general market
doesn't pull it back.
But, in
indicated
sur¬
mountable,
*
business in the
no
ket.
any case, a
come.
of man's develop¬
though selfish motives
part of the considera¬
tions which activate him, as is
shown by the example of the dollar-a-year men working for the
Government
during
wartime
nevertheless the inducement of
A fifth objection to the proposal
'
.
^
swings you'll probably get the
week's market may tell.
So
stock sooner than you think.
#
*
*
far, market isn't saying a
,,,
that
is that under the present tax
have
buying order at
planks in the sug¬
gested program would thus appear
was
,
If
con¬
general market
stop at 31.
to
of
Case
not be overlooked.
The first two
together
I.
effect of
102, makes no at¬
tax undistributed
general, it
seem
applicable to ; the limited
proposal under consideration, of
taxing capital gains to the extent
they represent accumulations
shows
35 and 36 looks attractive but
not
incentive
of income.
>>
*
position as the fore¬
So far as general market
going stock, even though it is action is concerned, the con¬
part of an entirely different dition that existed last week
group.
Stock now between is still in effect.
Offerings
corpo¬
to the taxation of
,
stock
trend
J.
solution
The
A fourth argument against the
price.
a
baby. But
choose
Don't chase
you
7:':7:777-:
*
*
one
market
tax return.
come
objection to
an
get out. whichever
approximate
is lost in
presumably pay higher rates* if he tinues, it can rally to above 38 chasing stocks than is realized.
before it meets any serious
waited to take his profit all in
Not so much in the
buying but
one
year.
Another situation in resistance.
But
with
the in
the selling.
Air Lines, for
which
complete tax equality
would not be attained would be market dogging it, 37 is the example, has .a stop at 22.
If
that of a stockholder who sold his figure more likely to stop it. you
buy it at, say, 26 you are
stock for a profit less than the So, advice continues not to
faced with a four-point loss
accumulated
earnings upon his chase Car & Foundry.
If a before technical
signals tell
shares,
and
thus
completely minor setback
brings it down you to get out. True, even
escaped taxation upon a part of
to 33-34, climb aboard.
Re¬ if
such
earnings.
This
could
be
you
buy
it
between
avoided by taxing the accumu¬ member, though, that its stop
23 and 24
you will still face
lated earnings when the stock was at 33 is a close one:
If it a
one to
two-point loss in case
sold irrespective of the amount oi
breaks it, get out.
stock breaks its 22
even existence of profit, but such
figure.
a suggestion is
But that's 50% less already.
open to other ob¬
fact
the stockholder.
change in the value
a
little
Former
common.
dividend is your
does,
hovers between 35 and 36.
situation by the
stockholder would
a
tempt
However,
their
Two weeks ago I recom¬
I suggested mended United Air Lines be¬
switching Armstrong Cork to tween 23 and 24. The same
American
Car &
Foundry. week stock ran
up across 26.
The former was gotten out of
Currently it is 26W. I know
approximately even (not in¬ how difficult it is to sit
by
cluding
commissions
and and watch a stock
you like
taxes).
The latter, recom¬ run
away from you.
But if
mended between 33 and 34
you can't control yourself you
ment of the tax in effect be bor¬
be offset in such
same
have
habits
Two weeks ago
perhaps until their death,
thus by postponing the pay¬
would be
it
*
years,
and
in
the
are
market
Otherwise, an
wait for
one-point loss may stretch to
them,
four or five points.
this might happen would be that
stockholders might hold stock ap¬
preciating
If
not
from
Any system of
gains
generally
some
solution of
capital
would require
this problem.
by March 1, the corporations could
be required to make an estimate
Vol.
audit
justment to the
prices
swings
Savs
widely while latter is at
(Continued from page 894)
best a creeper.
If you are
back to, await developments.
If 27 seems small pickings speculatively inclined, Case
is the one you want—at a
and you want to hold on, then
If wide moves scare
don't forget that 24 repre¬ price.
you then Kroger, with it's $2
sents a level stock should not
ordinary corporation,
any correction of income made by
the
Treasury Department upon
inflation periods.
were
fluctuate widely
(1936)
of the
case
taxing
losses from ordinary in¬
the effect of this would
probably be, even if similar gains
where the data would not be ready
Responsibility
the
included, to completely dis¬
rupt Government finances during
such
come;
Government's
May, Twenty-Five Years of
in
earnings is perfect, and the
proposed would appear
only preferable to any othei
suggested alternative, but also fa:
preferable to the present methoc
of corporate taxation which, apart
of
Another objection is that of the
practical difficulty in the annual
furnishing of the necessary data
must
other
Likewise,
rate
disadvantage
the
Tomorrow's Markets
Walter Whyte
as an
figure.
problem
as
against
year's
tax system to allow the deduction
since no tax program, can
be'devised1 which is perfect, this
ever,
be added
$100, and if the value of the dol¬
lar is cut in half, the bondholder
has really had a loss of $50.
Yet
it would seem impossible for any
rising market and thus tends
a
of
argument
problem?
One objection is
involves
value
administrative problems
in this are obvious.
general
any,
been
half, there has been no real
gain; the apparent gain is purely
illusory. This difficulty might, of
course, be overcome by taking in¬
to consideration changes in the
of the dollar would not create any
.
This proposal would appear to
Constitute a solution to the prob¬
most cases
the value of the dollar has
cut in
in such estimate would
adjustment to'next
any error
909
CHICAGO
R.
(1914),
A.
page
(Continued
Seligman,
The
Income
33.
on page
.
910)
-
Exchange Bldg.
YORK 4, N. Y.
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
t
A.
Thursday, March 2, 1944
/THE COMMERCIAL & FINANCIAL CHRONICLE
910
A Post-War
S
And Stockholders
E. f. du Pont
NOTICES
DIVIDEND
DIVIDEND NOTICES
Program for Taxation of Corporations
de Nemours
NOTICES
DIVIDEND
:
CO.
THE ATLANTIC REFINING
American
& Company
(Continued from page 909)
to pay,
and the importance of re¬
taining incentives to activity. Ob¬
viously in balancing these diverse
factors, different individuals will
reach different conclusions.
To
to
a
from income tax.
This mechanism would be the sim¬
plest from the point of view of
the taxpayer in preparing his re¬
turn.'
peace-time income tax
the writer
rates
tal gains, be free
graduated progressively up
maximum of around 50% in
top bracket would appear to
a
reasonable solution.
The
constitutional
amendment
the
■'
•
The degree
above
ment
Preferred
,iV.
forth
set
"interim"
first
of preferential treat¬
merely
is
suggestion and it might well be
considered desirable to grant a
a
constitute
gressive
April' 25,
1944,
standing
dividend
for
as
to
on
A
now
be going too
dividend
F. RASKOB, Secretary
reduction
A
tax
ther
in¬
from
individual
income
on
Even if income tax rates are re¬
duced
as
crease
the
suggested,
as
so
to in¬
financial incentive for
the individual to work and there¬
by
and
earn
that
there still re¬
save,
problem, namely,
promoting investment in
another
mains
of
risky enterprises.
One result of
which
tion
not
stimulate
and
commonly
ap¬
taking by in effect changing the
problem rendered more acute.
Suppose, for example, that an
investor estimates that with an
equal investment he has one-tenth
the chance of succeeding in ven¬
ture A where success will bring
$50,000 income in one year,
in venture B where success will
investments
or
possibly all
even
March 1,
savings?
The first could be ac¬
complished by extending the pref¬
erential treatment to all new in¬
A
Such
a
1944
comparatively'
the
if successful,
will then
in
the
investor
preferring the less risky venture.
In view of the importance of the
While
tions
during
such
a
condi¬
wartime
program
would
be
desirable, for the post-war period
it would
not
seem
wise to
of such
a
pro¬
posal would involve decisions
as
three matters:
it at the present stage
nomic knowledge, for
of two per cent, (fifty
the Ordinary Capita!
Stock in respect of, and ou: of earnings for,
the year 1943, was declared payable, in
15,
record
at
March
Checks will
be
share)
To
the
writer
it
appears
tion
can
never
exist.
However
cision
or
can
be reached
as
ques¬
a
de¬
to whether
not taxation should be used to
promote
or
retard savings
1944
holders of record at 3 p.m. on
l.V'/'V
to save, and the first
proposal of reducing corporate in¬
come
First, what is to be the test of
risky enterprise.
It would not
include, all new investment; the
taxes to
increase
5%
might tend to
corporate savings.
,
The four proposals above set
plant to in¬
of a company forth constitute an integrated pro¬
with an established business, such gram consisting of the substantial
as
a
public utility, should not abolition of corporate taxes and
come within the test.
The most the changes in our tax laws made
practical solution would appear to necessary thereby. They do not
be to define a risky enterprise in purport to cover the entire field
general terms and then to provide of possible changes in our Federal
tax
for an application to the Treasury income
laws. The
difficult
Department in advance for a rul¬ question of taxation of capital
ing in each particular case, which, gains generally has only been dis¬
when made, would determine the cussed
incidentally without at¬
matter finally.
tempting to formulate a program.
The
second
question
is
the Many other
important
matters
length of time for which preferen¬ have not even been mentioned,
tial treatment should be granted. such as the exemption from Fed¬
A minimum period of five years eral income taxation of state and
and a maximum of ten years is municipal bonds issued hereafter.
suggested as reasonable.
Obviously these subjects cannot
The third question to be de¬ be dealt with within the limits
cided is the extent to which pref¬ of this paper.
,
new
treatment
should
be
Furthermore the
aoove
program
It is suggested that one- is, as has been stated at the be¬
half of the. dividends paid during ginning;-'proposed
for adoption
the preferential period, together only after the war has been won
with the same percentage of capi- ' and when the productive energies
Secretary
10,
be
Checks will
The
1944.
Allied Chemical St
at
61
9,
February 24, 1941
Dye Corporation
Broadway, New York
-mailed/,-.
February 29, 1944
GREGG,.
Treasurer
Chemical & Dye Corporation
Allied
has declared quarterly dividend No. 92
of One Dollar and Fifty Cents ($1.50)
share on the Common Stock of the
Company, payable March 20, 1944, to
LIQUIDATION NOTICE
The Board of Directors'
of the
stockholders of record at the
common
close of business March 10, 1944.
The
In
First
National
State
of
the
All
creditors
Bank
Nebraska is
the
of
located
Butte
at
closing its
association
are
S.
ED.
December
2,
DONAHUE,
W. C. KING, Secretary
(Incorporated in Delaware)
American
President.
Manufacturing Company
NOBLE
1943.
WEST
AND
BROOKLYN,
The
of
Eoard
NEW
Frank
Court
for
dividend
the
Preferred
Stock
share
on
the
Miller,
New York
found guilty by a
United
States
District
was
a
per
dividend
of
Stock
,
50c
of
the
April
purpose
business
of
13,
stock
of
at
B.
BROWN,
25
New
York
1,
"
V
,
previously pleaded guilty to the
indictments,
penalty is 30
to be
are
March
on
8th.
sen¬
Maximum
imprisonment.
years
Board
The
N.
4,
¥.,- February
CO.
of
The Directors have declared
-
1944
24,
143
NO.
Directors
of
'
the
:
',,
;
i.
Vilas & Hickey, 49 Wall Street,
York
New
York
Stock
Curb
and
Dividend
covering
circular
ment
ICC
of
be
No.
Trust
47
Boston, Mass.
Company,
;'r
A.
-,r
Feb.
D. NICHOLAS, Secretary
1944
24,
COMPANY
Ex¬
166th Consecutive Dividend
by
:
com¬
paid
'J'he Texas Company and its
I {i
predecessor.
share or two per
value of the shares
of The Texas Company has been de¬
clared this day, payable on April I, 1944,
country will again be turned
to stockholders of record
as shown by
the manufacture of arti¬
of
war.
gram
the
(2%)
comes
it
desirable that the pro¬
on
on
March 3,
the dose
1944. The stock
transfer books will remain open.
'
L. H. Lindeman
should be adopted in its en¬
tirety rather than in gradual steps.
Whether
that
will
be
possible
par
books of the company at
instead of munitions of
business
When that time
would be
N. Y.
February 18,
record
at
the
1944.;
business
of
close
'
as
depends
February
on
Secretary.
size
of
etc.
No
one
Treasurer
February 16, 1944
mailed
to
addresses
all
as
stockholders
they
appear
record
of
on
bocks
the
can
Vice
President
and
GUARANTY TRUST COMPANY OF NEW YORK
New
The
Board
of
York, March 1.
Directors
has
1944.
declared
March 8, 1944.
MATTHEW
T.
MURRAY,
Jr.,
Secretary.
,
1K
what these will be.
the
siderable weight. This is, however,
unavoidable
aptly expressed in
quoted 'paraphrase
Pope's couplet:
"Whoever hopes a faultless
much
tax
to see,
Hopes what ne'er was, or is,
or
Chesapeake and Ohio Railway Co.
in any. tax program.
As has been so
the
The
e'er shall be." 10
10 Quoted in stamp, supra, page
215.
of
a
of Three
Per
Cent,
on
of this Company for the
quarter
ending March 31,
1944, payable on
'April
1,
J 944,
to
stockholders
of
record
quarterly
dividend
the
Capital Stock
income,
prophesy
Finally, as already recognized,
suggested program is subject
to various objections, some of con¬
the
of the
Secretary.
upon
today
at
Company unless otherwise Instructed in writing,
c. e. a. McCarthy,
national
our
.-
COMPANY
New York, February 29,
1944.
A dividend of Two Dollars ($2.00) per share
on
1,298,200 shares of Common Stock of South¬
ern
Railway Company, without par value, has
today been declared, out of the surplus of net,
profits of the Company for the fiscal year ended
December 31, 1943, payable 011 Saturday, April 1,
1944, to stockholders of record at the close of
business Saturday,
March 11, 1944.
v
Checks in payment of this dividend will bq
RAILWAY
SOUTHERN
the extent of our Federal debt,
the
'
>
■
S. CHEROUNY,
A.
the condi¬
tions which will then exist, such
however
;.
1044.
distribution of twenty-five cents
•
cent
to
York 5,
(25c)
i
share
and
a
special
cash distribution of
twenty-five cents
(25c)
a
share have today,
been declared by Kennecott Copper Corporation
payable on March 31, 1944, to stockholders of
-
THE TEXAS
New
Broadway,
■■
cash
.
A dividend of 50<£ per
cles of peace
120
A
28,
.
request from Vilas & Hickey.
back
be mailed.'
ii.: .0. Allan, Secretory and Treasurer,
twenty
of this circular may be had upon
our
business on
will
Checks
1944.
10,
on
paid
1943 rail results. Copies
on
holders of record at the close of
March
KENNECOTT COPPER CORPORATION
cents ($0.20) per share
March 22. 1944, to holders of
the outstanding Capital Stock of the Calumet
and
Hecla
Consolidated
Copper Company of
record at the close of business March 11, 1944.
Checks will be mailed from the Old Colony
dividend
will
-
ing
($.50)
the Common
1944, to stock-,
on
Philadelphia,, February 18,1944,
interest¬
an
of Fifty Cents
share
per
payable March 31,
Stock,
COPPER
City, members of the
changes, have issued
fro,a ^ie' Accumulated Bur-,
plus of the Company a divi-dend
limm*
**
HECLA CONSOLIDATED
COMPANY
AND
CALUMET
ICC On 1943 Rail Results
;
%
Ir "ta! 1*1*1
Anaconda
Mining Company has_4ee4&red a divi¬
dend of Fifty Cents- (50c) per share upon its
CaplfaTstock of the par value of $50 per share,
payable March 27, 1944,
to holders of such
shares of
record
at the close of business at
3 o'clock P. M.,
on March 7,
1944.
JAS. DICKSON, Secretary & Treasurer.
Boston,
New
February 29, 1944
of
1944.
Copper
A
Nine other defendants who had
Secretary~Treasuret
Treasurer.
MINING
Broadway,
DIVIDEND
after almost five hours of deliber¬
ations.
-
C. E. Beachley,
THE ELECTRIC STORAGE BATTERY C0«
COPPER
ANACONDA
.
.
1944, to stockholders of record at
of business on March 11, 1944,
per
close
the
until April
1944
ROBERT
close
Checks will be mailed,
1944
1,
transfer
March
1,
April
the
Company.
to stockholders of
record at the close of business March 13, 1944.
The stock record books will be closed lor the
interstate
transportation
and sale of $40,000 in stolen bonds
and for conspiracy.
Joseph W. Grober, a promoter
of London, and Russell Safferson
and Sigixiuhd. Sax% partners Iri
the securities firm of Biel, Rus¬
sell & Saxe, 60 Broad Street, New
York City, three co-defendants,
were acquitted by the same jury
tenced
and
,,
the regu¬
share 011
three-count indictment
on a
same
$1.25
of
Common
Both, payable
L.
the
quarterly
declared the regular quarterly
V2 cents per share on the $2.50
Preferred
Stock, payable on
Cumulative
American
the
this'day
dividend of 62
YORK,
of
Directors
lar
has
STREETS
Manufacturing Company has declared
attorney,
jury
in
COMPANY!
COAL
affairs.
Sentenced For Fraud;
Three Acquitted
•
CONSOLIDATION
therefore
hereby notified to present claims for payment.
Dated
tb
cooks will not
irans.er
close. Checks will be mailed.-
per
of
Conclusion
March
jOIIN 1. SNYDER. Treasurer.
15,
record
March
TRUST
1944.
1.
.
has
March
of
business
CLIFTON W.
■
the capacity
given.
of
April
payable
tockhoiders ot record at the close of business
BRAMLEYJ
t
share
INVESTMENT
COMMERCIAL
■CORPORATION,
March 1.1944.
'■
on
stockholders
to
close
1944.-
or
incentive
quarterly dividend of 60 cents per share in cash
-fas been declarea on the Common Stock of
Montreal, February 14, 1944.
of $.15 per
payable
standing,
the
a
ments.
A
on
Canadian funds, March 31, 1944, to Share¬
9,
mailed.
of our eco¬
there is too
a
erential
of
Common Stock, Dividend
meeting 01 the Board of Directors
per
of this corporation issued and out¬
adopt
risky enterprises should, for a pe¬ above set forth, namely the reduc¬
riod of time, be granted preferen¬ tion of rates in the higher brack¬
tial tax treatment.
The working ets, would of itself increase the
a
March
on
business
a
cents
been declared on the Common Stock
purchase of consumption goods.
Even without granting any pref¬
provision be inserted in the tax
law whereby investments in the erential treatment to savings, the
form of common stock in new adoption
of the third proposal
crease
of
dividend
A
a very limited extent
preference to so-called earned
income, and is likewise opposed
a
construction of
payable
i
CORPORATION
held today a dividend
Stock
Common Stock
granted to
in¬
vestment beyond that involved in
development of new kinds of in¬
dustries both in furnishing em¬ the preference to risky invest¬
ployment and in stimulating the ments. The dangers of making the
economy as a whole, this result is wrong decision because of insuf¬
ficient knowledge make caution
most undesirable.
sAccordingly, it is suggested that a preferable course,
to
At
the
on
Preferred
FREDERICK
a
study of these difficult
bring in only six times as much.
tions seems necessary before
Obviously this change in the
out of the details
Secretary
Dividend Notice
By order of the Board,
law, just repealed, which
tax
our
more
result
O'CONNOR
M
(wiercial JnvesimentJkusT:
PACIFIC
RAILWAY COMPANY
declared
stockholders
to
close
1944.
it will be noted,
program,
that, at least as to productive ca¬
690.
The risky venture insead of pacity, further increase is desir¬
able and that .general overproduc¬
bringing in-ten times as-much as
will
been
Cumulative
standing,
the
is, the opposite of the provision in
safe venture B will be cut to $2,*
odds
w
Secretary
•
.
CANADIAN
of this corporation issued and out¬
year.
other
has
$4.50
accomplished
only $5,000 income in one
The two ventures thus ap¬
the United States has reached a
pear
to him equally attractive
apart from the income tax.
Un¬ stage in its economic development
where savings are already accu¬
der
the income
tax at present
mulating too rapidly or, in the
rates, however, assuming that his
other net income is $10,000, the alternative, where productive ca¬
return from the risky venture A pacity is already being increased
too rapidly through new invest¬
will be cut to $16,680, whereas the
bring
the
1944
quarterly dividend of $1,125 per
share
the second could
by, in addition?
reducing the income tax on that
portion of the income which is
saved, which is the same thing as
levying a higher tax on that por¬
be
difference of opinion among
economists as to whether or not
from
February 23, 1944
■Preferred Stock
and
vestments,
wide
return
be mailed.
New York, N. Y.
gambling odds. ' Inasmuch as the
first two proposals made above to the views of those who advo¬
would result in subjecting to pro¬
cated
the
1936
undistributed
gressive taxation corporate earn¬ profits tax on the ground that it
ings now not subject thereto, the would tend to decrease corporate
impact
of < progressive taxation savings and put more money into
would thus be increased and this
the hands of stockholders for the
as
business
The
J. P. Treadwkll, Jh.
COMPANY
risky investments but also all new
progressive taxa¬
is not
of record at the close
stockholders
February 28, 1944
tion of the income which is spent.
preciated is that even in the lower
brackets it tends to deter risk-
him
of record March 9, 1944,
1, 1944, ta
of
April 5, 1944. Checks will
payable May
pany,
Both
stock transfer books will remain open.
THE FlINTKOTE
fur¬
merely
the Com'
on
payable April 1, 1944, to
are
30 Rockefeller Plaza
risky enterprises.
new
holders
-
Would it be desirable to go
in
rates
dividends
risky
new
0} 2 Op -per share
Stock have been declared.
anon
investments.
far.
IV.
come
rates on
tax
the Preferred Stock for the
on
quarter endIns March 31, 1944, and a
February 28, 1944.
on
quarterly dividend of 7.5(5 per share
(l/i%)
meeting of
a
held February 28,
Common Dividend A'u. 1S6
1944, to stockholders of record at the close of
business
32
the Board of Directors
1944, a dividend of
one dollar ($1) per share was declared
on
the Cumulative Preferred Stock
Convertible 4% Series A of the Com¬
At
Preferred Dividend No.152
the
the out*
March 14,
1944,
payable
Stock,
Common
share,
a
NUMBER
({$
Company
greater preference in order to re¬
duce the deterrent effects of pro¬
being advocated limiting such
maximum to 25% would appear to
payable
Stock,
April 10, 1944; also $1.25
PREFERRED
DIVIDEND;
stockholders of record at the close of business
on
•.
Bank Note
Wilmington, Delaware: February 21, IP44
The Board of Directors has declared this day a
dividend of $1.12^ a share on the outstanding
A dividend for the first quarter
of 1944 of seventy-five
share on $25 par common stock will be paid
April 1,1944, to stockholders of record at close of business
March 8,1944. Transfer books will not close.
cents per
H. F. Lohmeyer,
Secretary
Volume 159
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4260
Last
week,
Jan.
blanket arrangement,
industry
aid
IN
practical
among
GETTING
SHEET
AND
he
case
textile
BEHIND
INCOME
established
had
that
men
THE
One
these
applied
indicated
that
certain
a
grossly undervalued,
stock
selling
$5
at
share
per
19432
know
the
and
Board
Some of those who
AND
make and
ALLOW
He
FOR
HIS
PROFIT.
Taxes
can
How
can
to stay in business
such
on
profit?
a
insurance,
smaller
4%%
Service
for
other
afford, traveling
and
expenses
doesn't
service,
get
AND
HE
purposes
14, 1944, Florida Public
AND BRING
SANITY
SOME
INTO
'TORY ACTION.
THE
THE
IF
SEMBLANCE
BOARD
SEC
IS
OF
OF
CONTEMPTUOUS
(1-24-44).
'
16.
to
as
Kidder,
3%s
Feb.
effective
1
p.m.
on
25
Peabody
bid
of
&
Co.,
and
& Co,
103.7799.
104.8257
at
and
by
Weld
White,
int.
&
&
Co.,' Laurence
Rothschild
F.
&
Marks
M.
Co.,
Alex.
&
Co.,
&
Brown
Stroud
&
Co.,
Inc.,
Auchincloss,
Parker & Redpath, R. L. Day & Co., Put¬
nam &
Co., and Dean Witter & Co.
struction
may
slowly
more
be
and
forthcoming
in
smaller
amount than
anticipated in some
.circles. Under such circumstances,
14
St.,
Inc.
'
■ ■
•-'V:
■r
The
situation
current
Mont
tive
Laboratories
possibilities
in
offers
•
Commercial
bank
deficit-fi¬
holdings
of
U. S. Government obligations, di¬
rect
Oct.
and
fully guaranteed, as of
31, 1943, reached an all-time
ALL
eral
securities, it
constitute
now
resources
Du
by>
to a
J.
F.
Reilly & Co., Ill Broadwajr, New
York City.
Copies of this inter¬
esting memorandum may be had
from the firm upon request.
Sage Co. To Admit
Robert
mitted
H.
Muller
will
ad¬
be
partnership in Sage &
Co., 52 Wall Street, New York
City, members of the New York
Stock Exchange, on March 9th.
Address—900
the
date
same
M.
James
Securities
Ending
June 30
bond
1939
Total
to Total
Bank Assets
utility
■"Data
32.9
104,634,000,000
50.3
*
62,600,000,000
Commercial
bank
as
investment
'policy is irrevocably tied up with
of
Commercial
Banks
33.4%
80,409,000,000
relating to total bank assets
Debt in
and Fully
Guaranteed
34.1
22.5
26,415,000,000
52,604,000,000
1943 (Oct.)—
Debt Direct
48,466,000,000
76,970,000,000
140,788,000,000
169,160,000,000
73,393,000,000
Oct.
31,
national
1943 is
fiscal
of
000
New
37.4
37,0
and
Houston,
stock
operating
an
'
Barney
Co.
be
may
the
Casagrande,
1,000;
Mrs.
5,000; Dudley E,
Margaret Foster, 980;
Mrs.
Mrs. Florence
Freese, 1.000; Joseph J. Neri.
Marie
L.
Tracey,
56,945,
Mrs. Janet M. Van Meter, 5,000.
Proceeds—All
will
be
received
selling
and
■
the
by
stockholders.
Registration Statement No. 2-5264.
S-l.
Form
(12-1-43.)
Kobbe,
Feb.
29
$3,375
at
Gearhart
NORTHERN
&
Co.,
share
per
STATES
by
Inc.
POWER
CO.
of
$4
preferred stock.
The
the preferred and the common
of
which
is
being
(MINNESOTA)
\
Northern
Co.,
&
underwriters
are
the
of
elec¬
,
Smith,
—
York,
shares
offered
States
filed
Feb.
Power
Address—15
South
Fifth
apolis, Minn.
ferred
the
the basis
on
preferred
$6
or
of
each
for
1
1/10 shares
share
of
7%
of $4
preferred
preferred
stock—(b)
to
exchange
stock for $4 preferred stock
such preferred
and
half
share
stock
common
of
the
on
preferred
stock
for
basis
and
of
one-
share
one
share
each
of
such
of
pre¬
The
and Is also
pany
effective
working
the
proceeds from
capital
(In
part
company's -treasury
construction),
and
for
the sale
of
replenish
to
cash
used
for
part of such pro¬
ceeds will be used for redemption of any
of
the
company's
7%
or
$6
preferred
stock.
Net
proceeds
ing
10,000
the
underwriters
shares
sale of
from
of
$4
will
the
in
company
no
bonds
sold
aside
set
instance
by
for
use
to
the
in
be
filed
by
post-
the public to be
Company
for
sale
bidding
Rule
issue
requirements
Company
to
banks
Its serial
of
to
the
of
filed
to offer
proposes
pursuant
U-50.
com¬
Commis¬
also
proposes
notes.
and
amount
Minne¬
amendment.
petitive
sell
Proceeds—Will
be
used
$4,000,000
to
face
the
$4,999,000 face amount of St. Paul Gas Light
general f mortgage
gold
bonds,
5 %
assumed by Northern States which mature
pay
Co.
March
on
amount
1,
of
1944,
Feb.
and
the
promissory
dated
June
$4,000,000
notes
14,
1943,
of
the
which
1944.
28,
Form
(1-21-44.)
Registration
EWT
Feb.
on
statement
9,
effective
2%s
as
Offered
bid
on
Feb.
5
p.m.
1944.
Bonds awarded Feb. 21 to
ers
face
com¬
mature
Registration Statement No. 2-5290.
A-2.
remain¬
preferred
be
first
a
by amendment.
sion's
Street,
public
utility com¬
registered public utility
Oficring—Price to
to
for
•
.
Business—Operating
presently
(Minnesota)
statement
1, 1974.
holding company.
Underwriting—To
of
Co.
registration
a
in exchange
outstanding pre¬
ferred stock, is not being underwritten.
Offering—-The con-many will offer to
each
holder of its 7%
preferred and $6
preferred stocks the following options as
to
any part or
all of such holdings: To
exchange such preferred stock for $4 pre¬
holders
of
Broth¬
100.0693.
1944 at 101 and int.
24,
Lehman Brothers
Lehman
by
aqd Associates.
list of issues whose registration state¬
a
than twenty days ago.
These issues
grouped according to the dates on which the registra¬
tion statements will in normal course become effective, that
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which normally become
effective in seven days,
%
These dates, unless otherwise specified, are as of 4:30
P.M, Eastern War Time as per ruley30 (b).
Offerings will rarely be made before the day follow¬
ing.
.
THURSDAY,
REPUBLIC
Investors
to
by
Fund,
shares
300,000
held.
2
Exchange
is
invest¬
Bull
Management
named
principal underwriter.
Offering—At market.
Proceeds—For
a
capital
it
ments
for
all
MASSACHUSETTS
Massachusetts
a
INVESTORS
Investors
has
filed
registration statement for 866,368 shares
interest.
beneficial
of
Address—19
Congress
Street,
Boston,
Mass.
the
of
the
acquire a
and (3) re¬
or
company,
of its business with¬
larger portion
resorting to
territories
organize
(2)
insurance
business
transact
to
and
states
States;
fire
a
t
admission
S-l.
reinsurance.
.
(2-18-44).
Dates
trust.
Undetermined
Offering
of
BEN-HUR
Ben-Hur
Business—Investment
from
company
Registration Statement No. 2-5308. Form
TRUST
Trust
to
surplus of the company to
(1) me#t the capital require¬
to,
of
United
out
MONDAY, MARCH 6
Proceeds
—
and
enable
tain
Ira
to
1944.
10,
are
1944.
20,
stock
(2-12-44).
warrants
proposed offering is $1,100,000.
The pur¬
pose of the financing is to increase the
in
investment.
Registration Statement No. 2-5305. Form
A-2.
purchase
Proceeds
R.
offered
be
March
April
New
leverage
company,
Inc.,
will
record
of
York,
reg¬
:.:;
Y.
Business—Management
stock
new
stock
stock,
common
Place,
The
to be
exercisable for a period of 30 days after
Issuance, but, at all events, until at least
has
Inc.,
of
The
stockholders
FUND, INC.
value $1 per share.
Address—40
N.
MARCH
INVESTORS
Republic
istered
par
ment
■
ors,
Inc.,
MOINES, IOWA
PRODUCTS, INC.
Products,
Inc.,
registration
Massachusetts
Distribut¬
is named principal underwriter.
— Date
of
proposed
offering
—
James
the formation
of Shaw
McDermott & Co., with offices
statement
Shaw,
The
for
has
100,000
value $5
per
Casualty
filed
shares
of
capital
stock,
par
share.
Address—607
Pa.
Co.
of
Reading,
registration statement
a
Washington
St.,
Reading,
has
filed
a
$300,000 5%
for
"Government
role as
investment
present
bond
When
Federal
security
1944
ends,
portfolios
mercial banks appear destined to easily exceed $80 billion;
their
may
ance
line
casualty
com¬
general casualty insur¬
Conducts*
a
business.
Underwriting—None
reported.
Offering—The 100,000 shares of capital
are being offered by the company at
$11 per share to
stockholder^ on the basis
stock
of
series
one-half of
a
new
of
1943.
due
and 11,400 prior preferred
the purposes of such
con¬
and
and
tea,
Traction
in
marketing
extracts,
sharq for each share
Avenue,
business
Los
of proc¬
at
wholesale of
prepared mustard
spices.
Underwriting—Pacific Company of Cali¬
and Wyeth & Co., both of Los
are
named
underwriters,
each
having agreed to purchase $150,000 of the
debentures at 92V* %, or a total amount of
fornia,
Angeles,
$277,500.
Offering—Price to pubic.
•
pany.
1951,
for
Angeles, Cal.
Business—Engaged
coffee,
PENNA.
American
Penna.,
firm
their
1,
essing
OF READING,
Business—Multiple
continue
Feb.
shares,
Address—800-812
WEDNESDAY, MARCH 8
CO.
debentures,
convertible
version.
investment.
AMERICAN CASUALTY
in
Building, as successors
McDermott & Sparks,
will specialize in
municipal bonds.
to
Inc.
At market.
1944.
Proceeds—For
the Liberty
trusts."
com¬
—
Registration Statement No. 2-5306. Form
A-l. (2-16-44).
& Co.
DES
1,
April
Now Shaw McDermott
34.4
unavailable.
policy
Street,
company.
Underwriting
Underwriting
V'/•
announce
$45,890,000,000
16,549,000,000
47,513 shares of
without nom¬
Offering
in
Government
25.1%
$61,027,000,000
&
Inc.,
.y
Business—Principally
interest¬
distributed
quest.
bank
Bank Assets
$15,316,000,000
1940_™__„
all
against only 25%
Total Federal
Co.,
'
assets
U.S.
Securities
Direct and Fully
Guaranteed
an
according
situation,
memorandum
be observed,
U.S.
Cora
Foster,
Offered
Fannin
Klrkland
&
to
Haupt & Co., Ill Broadway, New
York City, members of the New
York Stock Exchange and other
leading national exchanges. Copies
of this circular may be obtained
from Ira Haupt & Co. upon re-
also
BANKS
Government
/
/
CO.
stocks
Texas.
C. Shaw and Owen P. McDermott
COMMERCIAL
Mrs.
value.
Underwriting—W.
1939.
U. S.
Government
Year
as
may
50%.of
POWER
and
stock,, both
Gearhart
are
of the late Otto H. Gruner.
and the national debt is indicated
in the accompanying table. Fed¬
disappointing and
nancing inevitable.
con¬
ments were filed less
attrac¬
according
issued
memorandum
On
be
&
Following is
of the national
debt then outstanding. Some idea
of the increasing importance of
bank
radio
'y
"
Du Mont Lab. Attractive
amounted to 37%
total
of
equipment,
public is $3.75 a
share, and net proceeds to the selling
stockholders $3,125 per share., Names of
selling stockholders and 'amounts to be
sold by them are: Edward F. Barile, 500;
on
Inc.,
Co.,
&
New York City, have
issued a new.circular discussing
the
interesting
possibilities
of
Province of Ontario.
Copies of
this circular may be had upon re¬
quest from Wood, Gundy & Co.,
MANNER.
Government
sale
production
electronic
Offering—Price to
to
Gundy
Wood,
Wall
White Motor offers
to
Kobbe,
pany
ing
States
Republic
LIGHTING
par
and
underwriters.
50,000 shares of $4 preferred will be added
SENSE
investments
and
Interesting Possibilities
high of $62,600,000,000. On that
date they represented about 50%
United
Central
preferred stock
or
and
Present
radio
Underwriting—Jenks,
5:30
1944, at 102 and int. by
& Co., A. G. Becker &
Proceeds—Net
can
production and employment could
effective
1944.
Canadian Situation Has
enter¬
total
statement
500;
inal
sets,
of
offering price of the $4 pre¬
ferred stock to the public will be supplied
by amendment.
,y,yy-.y-'.- ;•
REGULA-
This
sists
Form
Lighting & Power Co. has filed
registration statement for 112,264 shares
common
892)
assets.
be
outstand¬
and
Address—2600 West 50th Street, Chicago.
Houston
common
issued
Business—Production
McCormick
HOUSTON
already
are
receiving
Co., Inc., The
Hemphill, Noyes & Co.,
&
Co.,
McDorialdCoolidge & Co., Piper, Jaffray & Hopwood,
E. H. Rollins & Sons, Inc., Smith, Barney
& Co., and Stroud & Co., Inc.
White Motor Interesting
bank
to
manufactured for the Army and Navy.
Dillon
Kebbon,
ferred.
Requirements
of
with
First Boston Corp.,
Co.,
Also, Europe will be in ruins and
chaos, and credits with which to
finance foreign trade and recon¬
out¬
$3,150,000,
of
Feb. 23,
on
Eastman,
Co., Inc.,
to
1944.
Peabody
garten
Bank Invesimesif Policy And National Fiscal
;
EWT
balance
1
„
statement
Feb.
on
a partner in the firm will
acquird the Exchange membership
page
notes
of
Offered Feb. 24,
Grady,
(Continued from
cent
one
stock
$5,000,000 first mortgage bonds, series due
Sons,
DERELICT, THE KEY MEN IN
HIGH-HANDED AND
of
60,-
L.
GET THIS WHOLE STORY AND COMPEL
COMPLIANCE WITH THE PROVISIONS OF THE MALONEY ACT
WHICH THE PROMULGATION OF THIS RULE VIOLATES IN
MOST
stock,
shares
all
Electric
Co., Shields & Co., Harris, Hall & Co.
(Inc.), Lee Higginson Corp., F. S. Moseley
&
Co., -Equitable Securities Corp.,
Hall-
CONGRESS SHOULD
THE
for
statement
common
&
Kidder,
WON'T
COMMON
GOVERNORS'
of
The
has
Awarded
GET IT IF DEALERS WHO HAVE FORMERLY SUPPLIED IT ARE
ALLOWED TO EXIST, THEN HE WILL JUST DROP OUT
.OF THE PICTURE.
THE SEC SHOULD STEP INTO THIS NASD
AND
registration
a
shares
Inc.
NOT
RULING
filed
Lazard Freres & Co., and Blyth & Co.,
Offered
this meager mark-up?
on
investor
mortgage
TELEVISION
Corp., which is part of the Associated
associates
she advertise, pay rent, telephone, take the manuals and services, hire
the
Public
and
Oh Jan.
Registration
One-
How
payment
$5,148,400
first
&
tric
A-2
a
If
Florida
'
debentures
bank
Registration
p.m.
of $4
EWT
a
on a
the
(12-24-43.)
l/16th,
was
How
tainment for customers
104%;
Co.
Corp. system.
Registration Statement No. 2-5293. Form
$3.40
were
half of $13.85, as is obvious, is BEAN-BAG MONEY.
salesman be expected to work for such a commission?
carry
Service
Series
Freres
*
Gas
bought 100 shares at 5.
basis.
help,
at
s-i.
a
was
50%
.office
Public
1966,
of
Flor¬
4s,
&
per share
Lazard
Inc.
tric
disseminate
This dealer has two salesmen who work
dealer be expected
1,
Dec.
redemption
$11,000,000
dealer—
a
<(State and Federal); clearance charges $1.50; finder's^fee
or $6.25, which leaves a GROSS
PROFIT OF $13.85.
j
the
mortgage
Co.,
sidiary, were merged into Florida Power
Corp. as the continuing corporation. Com¬
pany is controlled by General Gas & Elec¬
BEFORE HE STARTED TO FIGURE HIS REGULAR
'OVERHEAD
To
first
and Sanford Gas Co., affiliated
companies, and Sante Fe Land Co., a sub¬
He marked it up to 5^4 under the rule. (Quoted market was 4%-5.)
His gross on this 100 shares was therefore $25.
Now let's look at
expenses
de¬
it.
went out to sell this stock to his clients.:
;his
Pro¬
RADIO
value.
par
Registration Statement No. 2-5280.
-
&
ing
standing
K;i,
serial
and
by
prepayment premium and accrued interest,
and to increase working
capital.
Service Co.
Governors
of
rate.
debentures.
bonds
securities:
Corp.
$730,451.
Incidentally, this is something the
of the NASD should recognize.
rulings under which the
-investment business is now laboring do not realize the value of
the time and effort required to properly serve the investor.
::
But to go on—let's see what happened to this dealer when he
SEC
Success¬
interest
supplied
1, 1944, at $102
Barney
Blyth & Co..
offered
$2,300,000
Al, trade acceptance high, and float¬
ing supply of stock small—this dealer after a thorough check-up of
his own decided he had something worthwhile to offer his clients.
, , ;
Since this dealer was intelligent enough to know that you can't
get something for nothing, he readily accepted his textile friend's
suggestion that, he pay him a small finder's fee on each share he
Good information is worth money to
due
serial
Based upon net quick assets of about $11 per
.his* clients should also
of
follows:
as
following
Florida
outlook good, condition of plan
.sold to his clients.
U-50.
be
Offering—Price to the public will be 102.
4S, Series C, due 1955, at 102.90; $1,622,000
Florida Power 3V2V0 serial debentures and
share, current ratio of 7 to 1, income yield of about 20% in the
•prior year and an expected return of almost as good in the coming 12
months despite much higher taxes, management excellent, industry
i
serial
sale
Power
C,
industry brought him a special situation.
He received confidential
•figures three weeks before the publication of the annual statement
which
the
name
3V4%
the
in -the
friends
of
from
ida
OF, THE; BALANCE
of
Rule
bentures, together with other funds of the
company
to the extent required, will be
an
as
bidder will
ceeds
textile
the
invaluable
were
FIGURES
ACCOUNT.
in
contacts
Commission's
amount
•
this
to
Proceeds —To
Proceeds—Company also proposes to sell
privately "to John Hancock Mutual Life In¬
surance
Co.
of
Boston
$4,000,000
face
just looking in the quotation sheets and selecting
low-priced issue at random and then making an; offering to
In
the
ful
vast
his clients.
others
7%
CORPORATION
70,925
of
names
making
Majestic Radio & Television Corporation
has
-v... y:
bids for the purchase of bonds from it un¬
der the competitive bidding requirements
of
and
MAJESTIC
amendment.
Offering—Price to the public to be sup¬
plied by amendment.
Company will invite
much farther than
■some
V:
Co.
v
minority among smaller investors.
This dealer has had an experience in security analysis that goes
'
•
,/y'V-v" "
supplied by postr
be
Avenue,
with
connecting
with
the
of
Georgia Power
amendment.
Allegheny
Underwriting—Eastman, Dillon & Co.,
New York, head the underwriting group,
facilities
Underwriting—To
.
•
for
except
its
in
(2-18-44).
Offered March
supermarkets
en¬
gaged in the retail sale of groceries, meats,
meat products, vegetables, etc.
.
Florida,
,•;■'•■■. •;
effective
.
the
line
transmission
Co.
.
in
i;
of
of
and
to working capital.
Registration Statement No. 2-5307. Form1
A-2.
by Smith,
Philadelphia, Pa.
Business—Operates
St.
stocks
added
•
East
retirement
or
preferred
cash adjustments with exchang¬
stockholders.
Any
balance
will
be
ing
for
1959.
Address—2223
$6.
necessary
STORES, INC.
Stores, Inc., filed
Fair
statement
redemption
and
a
regis¬
$3,500,000 15-year
sinking fund debentures, due Feb. I,
Vk%
utility operating wholly
State
transmission
low-priced stocks that no only offer outstanding investment oppor¬
tunities, but are also the perfect type of investment for the smaller,
securities, buyer with; limited funds available.
*
^ \
^
i
For instance, take the case of an investor with limited funds.
He can buy 50 or 100 shares of a stock selling between 5 and 10
and thereby increase the diversification in his small list by investing
in several of these issues, meanwhile he has the satisfaction of own¬
ing little round lots of securities rather than only a few shares of
higher-priced issues. There may be some who would say that this
is ridiculous-^the small investor can buy 5 shares of General Motors
or 3 shares of DuPont
just as well as he can 100 shares of a lowerpriced issue.
The facts are, however, that he doesn't do it,
Only
occasionally will you find the smaller investor who buys odd lots
of 5 shares or less of anything.
There are a few who do this—they
are
the
South,
Street,
v
Business—Public
within
Yi: •■.
number of
\■
Whether it is generally realized or not, there are a
v >
Fifth.
Petersburg, Fla.
composed
FAIR
tration
1, 1974.
Address—101
investors, told us of his experience operating
under the new 5% ruling.
It's a classic illustration of the absurdity
of trying to regulate profits for every type of security and all classes
under one
CORP.
Interest rate will be supplied
by amendment.
smaller
of dealers
POWER
Florida Power Corp. has registered $16,500,000 first mortgage
bonds series due
The Sale Of
dealer who has established a clientele
a
FOOD
Food
FLORIDA
::,v:-b:.:kvLow Priced Stocks,%/:/%i
largely of
Security Flotations
OFFERINGS
WHO WANTS TO WORK FOR GLORY?
The Effect Of The NASD 5% Rule On
tlx©
Calendar Of New
The Securities Salesman's Corner
911
Proceeds—To
retire
100.
bank
loans
and
working capital.
Registration Statement No. 2-5273.
Form
S-l.
(12-20-43.)
Statement
originally
filed in San Francisco.
Amendment
effective
(This
filed Feb".
15,
1944, to defer
date.
list
is
incomplete this
week)
Thursday, March 2, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
912
HAnover 2-0050
Merrimack Mfg.
For Dealers
N. Y. 1-971
Teletype
.7
'
..
Trading Markets
Firm
7!\
.
.
''V
|
'
Common
.
'
•
I'
'•
'
$5
:v;7"7.7■■ //v'"
•-
New
V
Corporation
SECURITIES
all .issues
7l7-' '7
V
i.
•
_
Old
|7'
INC.
Convertible into 3 Shares of Common
SPECIALISTS
======
Corporation
New York 4, N. Y.
'
50 Broad Street
AFFILIATE: CARL MARKS & CO. Inc.
On Governments"
Company
Kobbe, Gearhart
7 777//*, ^7;;
Members
New
77;
Birmingham Gas
Citizens Utilities
YORK'S
Biggest news to Government bond dealers since
war was the announcement late Monday by the
NEW
STREET,
NASSAU
Community Gas & Power
Consol. Electric & Gas
Derby Gas & Electric
National
.
.
.
.
.
1-1397
Amer. Gas & Power
incorporated
177.77 :;777;-717,7
York
Security Dealers Association
our entry into
Treasury that
Bell Teletype
telephone
philadelphia telephone
exchange offer $4,730,000,000 outstanding
new york 1-576
Fjnterprise 6015
REctor 2-3G00
obligations.
.■.
7v:-l7--7:.7'7|'^7r\.■>.-/-7^;"|^77-'
Details of the security to be offered present holders and the
method of adjusting interest are to be made public today. .... . In the representing an all-time record.
. When it is considered that only
meantime speculation ranges all the way from a 1%% note to a 15 months
ago, at the start of the first Victory Loan, the objective
1%% short bond.
But the big news is that the Treasury has was $9,000,000,000, to be raised by borrowings, this month's payment
reestablished ."rights" on its refunding operations. . . . This was a assumes even larger significance.
It means we have made long
familiar pre-war device that has been absent since Pearl Harbor. . . . strides on the financial front as well as on the war front. . .. .
Many dealers have felt that the day of "rights" was gone forever, in
Is this estimate too large? 7,
When it is realized that the.
view of the enormous amount of Government debt outstanding and
Treasury collected $5,000,000,000 in income tax payments last De¬
the relative shortness of maturity on a good portion of these obliga¬
cember, that the current payment will reflect for the first time the
tions requiring frequent refundings.
full impact of the 1942 Revenue Act on corporation and large indi¬
However, the tip-off came on the Treasury's refunding of the vidual tax liabilities, as well as final settlement of unforgiven
Feb. 1 certificate issue, which fell due in the middle of the Fourth
balances the estimate does not appear unduly excessive. . . . In fact,
4 5
HAnover 2-8780
I.
4-4%
Market:
it would refund through an
.
N.
CHICAGO
By E. P. TEE
the
St., N.Y.
Teletype
Trading
Dealers Ass'n
Members N. Y. Security
25 Broad
Bendix Home Laundries
4
r:
M. S. WlEN & Co.
and operates coin-operated
owns
Current
M0ur Reporter
Pfd.
&
Common
$4.25 Pfd.
"
FOREIGN SECURITIES
& Hartford
American Airlines
Cumulative Dividend 50c per annum
PARL MARKS & CO-
Stocks
Pfd.
N. Y., N. H.
Cumulative Convertible Preferred Stock
par
England Pub. Serv.
Plain
Telecoin
CUBAN & SUGAR
Vv;
• '
Co.
& Pfd.
New Eng.
Electric
&
Gas
Power Ass'n Pfd.
Peoples Light & Pow. Pfd.
United Public Utilities 7V
i
.
.
.
.
.
L. D. SHERMAN & CO.
Members N.
Pine
30
Security Dealers Ass'n
Y.
Street, New York 5
t
Tel. WHitehall 4-7970 Tele. NY 1-2218
...
drive.
Loan
War
This
...
13 months
exchanged for a 0.90%
was
indication that a little sweet¬
ening would be injected where necessary to insure a quick, successful
operation.
.
,
.
the final figure may well be larger....
•71
MONEY MARKET MANAGEMENT
MINING
Specialists In
issue—not much improvement, but an
is the Treasury's biggest maturity
present operation
•The
next
.
.
.
banks.
announcement
certificates due April 1.
.
.
Expect
.
separate offering on these
a
during the latter part of this month.
.
.
The Treasury's
to
.
Treasury apparently has kept open for its refundings.
which
guess
opinion
running for four and
This
would
stances.
...
.
Since the
a
command
in the "street"
half
.
.
.
If you can
favors
a
1%%
and
the bulk of the called issues,
bet that whatever is offered will be somewhere in the 1947-49 range.
Conservative bank policy is opposed to any exchange that
is too
attractive, since this might lead to criticism at a later date.
The
Treasury in the past has misjudged the market badly at times, as
for example, the especially attractive offering of Vfa% notes last Sep¬
tember.
While the offer to be announced today is expected to be
sufficiently good to insure a prompt and successful operation, also
anticipated is that it will be keyed pretty closely to the market. .
But that it will be attractive is indicated from the nominal yield
basis on which issues which may be used for the exchange are now
selling.
:|;7 777;7/77
w
-7-^7-:I-.:.
.
.
on
.
.
...
be stated with reasonable certainty that the Government
bond market over the next two w$eks will offer little other excite¬
ment in the wajr of price movements.
Nevertheless, it will be
watched carefully for clues to the future probable course of events. . ..
.
the
this
for
March
15
the Government
by^ealers
attitude
income
of funds in prospect.
..
tax
payment
.
.
of
the
and
New York
date with
a
record
market,
espqci^lly significant
am
and bank deposit turnover.
This is the way the
money
cash
slated
substantially
just
what
the
...
total
new
record
high in collections
It is difficult to estimate with
will
^ *s cer^a^n that
temporarily lose deposits
In the meantime,
selling
Telephone HAnover 2-4341
the
...
In
INDEX
;77:
the outlook favors:
be,
due
to
many
taxpayers
as
the
a
complicating
their
bills.
.
.
An
easing by
:7,v■ 7,7
balances in
the Treasury of calls against its
:v
>7.
Page
Stocks......... 900
Bank and Insurance
War Loan accounts with the
banks
thereby enabling the banks to
Calendar of New
hold these funds invested for
Security Flotations 911
longer period with consequent im¬
a
Securities
Mutual Funds
2. Probable postponement of the next major War Bond
now
discussed for May, to not earlier than June.
............... •
V 902
drive
Municipal News and Notas.. 906
.
912
Our
Reporter on .Governments......
Our
Reporter's Report............... 907
Public
U.S. WAR
MILLIONS
OF
RATE
MILLIONS
OF
DOLLARS
,
896
895
.
£f
894
Security Salesman's Corner.........
DOLLARS
1941-JAN UARY
Securities
Securities
91X
Real
77
Estate
Tomorrow's Markets—Walter
Whyte
f
.
350
7
■v
Utility Securities............
Railroad
EXPENDITURES
DAILY
<£•
904
.....
provement in earnings, and.
894
Says
1944
'
•
.
300
300
:7;,'•'••■'V
250
Empire Sheet &
200
200
Tin Plate
150
150
250
fat
••
'7:i7"'7"77'
,'7
.
.
.
backbone
of
the
Government
or
bond
They will be
tight situation
changes
First Mortgage
Memorandum
6s, 1948
available
upon
request
100
100
more
in their institutions
acquisitions.
new
50
50
i
i
i
i
i
1
*
i
i
i
i
S? Sry's Pr°bable March
$8,000,000,0000.
.
.
.
This is
a
H"l
1
1
1
income tax receipts
tremendous
figure,
1941
1942
Hill, Thompson & Co., Inc.
Markets
11
1
1
JFMAMJ J ASOND J F MAM J
1943
and Situations for Dealers
1
...
d FMAMJ J ASO N D J FMAM J JASOND
as
r
"
1.
any
..
settle
fj"ceriljf wath the probable deposit turnover
man with portfolio
high
1924
York 4, N. Y.
however, commercial bankers whose buying
constitute
market, must Prepare for
as
MORRIS STEIN & CO.
50 Broad Street, New
every commercial bank in the country
.
g
15,
March
on
\
a
Syndicate
Over-the-Counter Securities since
in War Loan account and with
now
expand
to
UARY
These funds will flow back promptly to the
banks, of course, through
Treasury expenditures and moves made by the money market man¬
agement to assist redistribution.
ra
Venezuela
...
Treasury again will have a huge working balance on hand.
these circumstances,
now,
.
and
in the Government bond list.
$17,000,000,000
resources
Pfd.
Explosives
market management having a big task ahead, but
without any disturbance
over
Products
Prod.
Tennessee
for the next two weeks,
up
,v-
South Shore Oil
St'd. Coated
shift and have no effect
enjoying both the authority and the experience to see it through
With
7 1*
Triumph
situation shapes
~
Remington Arms
...
never
•n
and their
holders of these obligations
large
Corp.
Loft Candy r
The corpora¬
...
Hoe & Co.
Lanova
turned in has been
turnover
before present such as the
unforgiven portion of 1942
taxes and balances due above the
withholding tax.
will
This is another factor that cannot be
.
350
The tax take this month will set
certainty
.
.
banks
...
1-110
Electrol, Inc.
P.
These quarterly periods, always important to
.
NY
4-2968
be
can
Saving notes may greatly ease the amount
Tax
cash transfers.
HEAVY PAYMENT IN PROSPECT
factors
certificates
the
77-"7
.
banking position.
with the
.
first, because
of the huge sums involved in tlie transfer from
private balances to
Government account and secondly, due to the fact that the banking
system as a whole is working with a minimum supply of excess
reserves.
and
reserves
WHitehall
Canadian
It may
is
creates
especially, are
the
.
.
Reason
.
f-
BROADWAY, NEW YORK 4, N.Y.
42
the form of one-day special
Such has been the procedure in the past. . . .
surrender for taxes will involve no deposit
longer section of the market is pretty well crowded
offering out here would be just too attractive, it is a safe
.
.
tender
The
since the
any
taxes.
pay
tions,
since the Treasury has indicated that it wants banks to stay within
the ten-year maturity range, since banks agree with this reasoning
and
.
.
CORRESPONDENTS IN
PRINCIPAL MINING CENTERS
Members New York Security Dealers Assn.
will
and
Inquiries Invited
HUNTER & CO.
$5,000,000,000 securities
doubtless use part of
upwards of
banks
steadily increasing at each successive tax period.
./-v;'
own
.
determined in advance but the amount of notes
to about Sept., 1948. .
premium and fit the circum¬
•
commercial banks
.
7
sell
can
Reserve
operation
of actual
note
years, or
fair
a
.
promptly liquidated out of the tax receipts so that the net effect
is to smooth out the squeeze arising from deposit transfers to
will be selected for the present exchange offer,
close to naming the coupon rate. ...
informed
Best
Federal
the
This
year
you can come
Not at all.
-
Treasury
certificates.
announcement has intensified the guessing con¬
few weeks, as to what the exchange offer will be. . . .
few maturities in 1947, 1948' or 1949, years which the
are
.
this privilege prior to March 15 in
test of the past
There
,
...
The
CONTEST INTENSIFIED
GUESSING
.
ISSUES
DOMESTIC & CANADIAN
entering this period with slim excess reserves,
that the money market management, which
intervals will be rolled-over as indicated by Monday's
which excluded mention of the $5,250,000,000
at regular
weeks?
two
banks may be assured
has proved itself ex¬
tremely capable, will provide the reserves necessary to the banking
system in meeting this heavy deposit turnover. . . . This situation
undoubtedly was carefully covered at the meeting in Cleveland
last Monday of the presidents of the twelve regional Federal Reserve
problem of the year. . . . It will be made sufficiently attractive
to go over big..... Once these maturities are out of the way there
are
no
issues due before September, when about $900,000,000
notes mature and then again in December, when $1,037,000,000
of 4% bonds will be called.
Bills and certificates that mature
7
to liquidate securities over the
Despite the fact that we are
Will the banks find it necessary
.
.
1944
120
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
7-f
@FedFRASER