Full text of Commercial and Financial Chronicle : March 21, 1946, Vol. 163, No. 4474, Section 1

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Final

Edition

ESTABLISHED

In 2 Sections-Section

OVER 100 YEARS

Commercial
Financial
Reg. IT. S. Pat. Office

Volume

163

Number 4474

New York, N.

Y., Thursday, March 21, 1946

Inaugural Meeting of

Bricks

Washington Chosen

Dr.
;

Monetary

Fund

the

and

International

Bank

Lutz, Quoting

Infl Politics

in the summer of 1944.

stitutions

electing
posed

was

fixed,

directors

set

...

were

personnel,
not

already

made

and

ports

for

each

was

provided for.

fixed as

.:was

for

Nominations for Executive

The

following

are

alternates

and

governors

going

for

directors in each

iff!

time.

There

in Lohdon

v«

■

ing

only

seven.

of the

boards

p e c

the

ing

ments

i
Paul

elect

political

Einzig

In the Bank list of candidates which follows, there

(Continued

on page

are

the

situ¬

will

1534)

eight

long way towards securing a
majority in favor, of ratification.
It is believed that/since it was the
of
the
war
that

termination

Index

Gaumont British

page

1540.

brought to an end the wartime
system of pooling economic and

Regular Features

financial resources, the

on page

1534)

story of how

worthy

Dr. Hurley Lutz

their labors

a group of diliwas compelled to do
The edict under which

persons

something the hard

way.

increased

were

was

royal whim, for

was obviously not in the interests
efficiency in production that the straw was withheld.
y :

The

spurred

good
on

people who toiled under
by the taskmaster's®-

have

long since passed to
reward... The
history
of
struggle, if fully revealed,
would produce many instances in
man's

which stupid or cruel masters had

wilfully

decreed

t h

results

should be got the hard way.
By
virtue of their endurance as part
of the warp and weft of history,

the

blazing

of greater

Egyptian

sun,

wants—goods and services,
income, and a better stand¬
living. The straw would be
the capital required for this pro¬
duction, together with the profits*
now

ard of

and

the

incentives

other

in¬

to plan and
contrive in order to get ahead*: An
extension of the parallel would

vest,

take risks,

these

legends have an application
today. Suppose that we inter¬
pret the story so briefly sketched
above,
in modern
terms.
The
bricks, which were the current
output of the ancient workers,
would be the things that everyone

for

(Continued

on page

1530)

State and

San Francisco Mines

Municipal

Aerovox Corp. *

Pratt's Fresh

Nii-Enamel

Frozen Foods, Inc.

M FUNDAMENTAL

Common'Stock.--'

■'J% * Prospectus

request

•}',<

Successors

;

HIRSCH,

:.A";

25 Broad St., New York 4, N. Y.
2-OtiOO

Teletype NY

Cleveland

Geneva

V'.

Request

1-210

London

(Representative)

INVESTORS

Established

■'./

prospectus

1927

INC-

for Banks, Brokers
and Dealers

BOSTON

; ;.V

PHILADELPHIA
" Buffalo
Sjrracuso

Baltimore

•

'Wilkes Barre
Washington, D. C.Woonsocket

■.{'

Springfield

„

€.0 trot AT l»

WALL STREET

NEW YORK

BOND

LOS ANGELES 14

Coimnoh' &

::
r

finance

'■■■•

•

Members New

■

York Curb Exchange

Tel. DIgby 4-7800

markets

Public Service Co.
PREFERREDS

Company

Conv. Preferred

• '

Raytheon Manufacturing Co.
$2.40 Conv. Preferred

Bull, Holden & C°

Kobbe, Gearhart&Co.

MEMBERS NEW YORK STOCK EXCHANGE

INCORPORATED

Members N.
14 WALL ST.. NEW YORK 5. N. Y.
TELEPHONE-RECTOR 2-6300

Y. Security Dealers Ass'n,

45 Nassau Street
T«L REctor 3-3600

New York 5
Teletype N. Y. 1-576

Philadelphia Telephone:

Enterprise 6015

Prosptctus

request

HART SMITH & CO.

Exchange

Telephone: BEctor 2-8600

Teletype NY 1-6S5

IRA HAUPT & CO.
Members
and

New

York Stock Exchange

other Principal Exchanges

Members

Reynolds & Co.
Members New York Stock

120 Broadway* How TTorkS, H. T,

Bell

CITY OF NEW YORK

Carpet Co. Com.

Solar Aircraft
90c

THE

New England

Preferred

secondary

Tele. NY 1-733

Alloys, Inc.

Codv.

;

NATIONAL BANK

New York 4

Detroit Harvester Co. Com.
The Firth

V THE CHASE

York Stock Exchange

30 Broad St.

634 SO. SPRING ST

Acme Aluminum

r<,j

corporate

Members New

HUGH W. LONG and COMPANY

Troy"
Albariy
Pittsburgh
Dallas

Bond Department

Hardy&Co.

dealers

from

Bonds

from

authorized

Street, New York 5

Brokerage

Service

INVESTMENT SECURITIES

64 Wall

■v ? «

BROKERS

•

may

obtained

:»■'

Bond

"r'

CO.

LILIENTHAL &

Chicago

•'

R. H. Johnson & Co.

iU*;

Members New York Stock Exchange
and other Exchanges

HAnover

Prospectus

Hirsch & Co.
.

possibility

•

(Continued

gent (and

have

their

ternational

not

Exodus, 5, 6-13.'

lash,

disquiet¬
develop¬

the

will

as¬

of straw.
;

that

sumed

ation
.

It is

unto

So the people were scattered abroad throughout
the land of Egypt, to gather stubble instead

pros-

widely

Since

had

governors

rati¬

fication

is limited to 12-—although this may be increased at some future time

meeting

the

spake

all

are

mistic regard¬

institution—the appointive directors, who represent

Savannah

they

saith Pharaoh, I

ought of your work shall not be diminished.

dec 1

the number of executive directors in both Fund and Bank at present
—the

and

you straw.
Go ye, get you straw where ye can find it; yet

' agree¬

o a n

officers,

give

the

dedly
more
opti-

the countries with the five largest quotas or subscriptions.

with'their

formed circles

two classes of executive

are

rds

people, saying, Thus

1 i

(i.e., count or tally) of the bricks,<
did make heretofore, ye shall lay

ment,, well-in¬

the nominees for the executive directorships^

some

no more give the people straw to make
heretofore; let them go and (father straw

And the taskmasters of the people went out,:

was

Dfe^ctors ["i?!,*<■'

upon them; ye shall not diminish ought thereof;

~'«
i

the

Congress

of Fund and Bank, as posted on Sunday, March 17, prior to the elec¬
tions. W ; These two lists are the results of the politicking which has
been

attitude

\he fisfcaj year of the institution

beginning July 1,<

&I8i

trend

of the people, and

And the tale

indicate any definite

fjxed at $30,000 free of taxes, and the

remuneration

brick,

not appear to

hC-t

taskmasters

•'

which; they

By PAUL EINZIG

pro¬

provided

mmmmmmmmmM

LONDON, ENG.—Although re¬

voted to locate the prin¬

was

;

Ye shall

The honorarium of the executive manager of

officers, saying:

for themselves.

cipal office of the Fund and the Bank at Wash¬
ington though there was some objection to this,.

commanded the

And the UK Loan

The site of the in¬

provisions

and

by-laws

adopted.

was

Herbert M. Bratter

•

the proceedings before
the Senate Banking Committee do

...

;

And Pharaoh
their

plenary session in which all participants
expressed general satisfaction at the results.
A note of optimism prevailed among the dele¬
gates and outwardly there appears to be no hitch
in the preliminary progress toward putting into
operation the two great institutions which were
provided for after several weeks of debate and
conference, at Bretton Woods, New Hampshire,

-<s>

for

....

■>'<■

as Attempting to Make
Holds Modern Bureaucratic Taskmasters Want Bricks Made With Neither Clay

Reconstruction and Development came to an end,
with

University

Biblical Extract, Compares the OP A Price Control Policy

Inflation..

SAVANNAH, GA., March 18—Today the inaugural meeting of
International

Straw
'

' Professor of Public Finance, Princeton

Copy

Supply and Demand Without a Price Factor, and That Remedy Against Continued High Prices Is High
Prices.Holds Temporary Controls Tend to Perpetuate Themselves and That Production Is Not Com¬
plete Remedy for Inflation. Attacks Profit Absorption Policy and Subsidies as Tending Toward More

Will arid Satisfaction.

the

Nor Straw, Since They Destroy Incentives to Production.
He Contends Inflation Is Due to Fiscal
Policy as Well as Goods Shortage and Black Markets.- ! Points Out That There (s No Balancing of

Bank. Executive Staffs Decided, with Salaries;for p
fi Chiefs Fixed at $30,000, Free of Tax. Vinson and J.
v
f Keynes Both Make Farewell Addresses of| Good
;(

Bricks Without Straw.-

Permanent Site of Fund and

By HERBERT M. BRATTER

Without
By HARLEY L. LUTZ

World Fund and Bank Ends
f'

Price 60 Cents

New
52
•

York

Security

Dealers

WILLIAM ST., N. Y. 5
Bell Teletype NY

Hew York

Assn.

111

10 Poat Office 84.
Boston 9

Broadway

New York 6

HAnover 2-6980
1-395

Montreal

Toronto

REctor

2-3100

•

Hancock 3780

Tele. NY 1-1920

Direct

Private Wire to Boston

Trading Markett in:

DecKning Interest Rates and Inflation

Chgo. Rock Isl. Old Pfds.
Frisco Old Pfd.& Com.
Maxson Foods, Pfd.

Thursday,^ March 21; 1946

FINANCIAL CHRONICLE

THE COMMERCIAL &

1494

P. R. MALLORY

By JAMES J. OXEARYr
Director of Research, Committee

Public Debt Policy

"" /

t CO., INC.

O'Leary Points Out That Declining Interest Rates Have Exerted Inflationary Pressure Because They
Have Increased Money Supply by Expanding Bank Credits, and They Have Caused an Inflationary Rise?
in Securities and Real Estate Prices*
Holds Government Borrowing Fronr.Bankfr Has Led-to a Money

(With Prospectus)

Dr.

Mills
General Box

Alabama

Glut and

KING & KING

Recommends (1) Discount Rate on Government Bonds Be Raised to
Short-Term Governments into Long-Term Issues; and (3) the Reduction of
Holds That OPA Is Losing Battle Against? Inflation^ ;
'
;\
,

Excess Bank Reserves.

Members

Security Dealers Ass'n
Nat'l Ass'n of Securities Dealers, Inc.
New York

40 Bxohftnge

BBI.Ii

American

\ The
che

TELETYPE NY 1-423

Sfeiner, Rouse & Coi

Introduction v

HA 2-2772

PI., N.Y. 5

economy

of being pushed ^ancl

process

A & B

out
but
stage
is

of
the

Delaware Rayon
-iXZ'^r

^.).

unless

counter-infla¬

Bought—Sold—Quoted

;

tionary weao"
into

MHfliells(ompaiii)

WOrth 2-4230

1-1221

Bell Teletype N. Y.

higher

SALE

FOR

W. & J. Sloane

business

Curb

York

Exchange

Telephone COrtlandt 7 -4070
Bell System Teletype

■

NY 1-1548

A. S.

_'.

;-:vf

•

of this article is to

the 4 "inflationary

contribute

(Continued

page

1516)

•

Campbell

Home

Bldg. Corp.;

Capital

'' v/;-

Stock

Title §8§

Guaranty Co.
H. G. BRUNS & CO.
20 Pine Street, New

York 5

Telephone: WHitehall 3-1223
Bell

Teletype NY 1-1843

,; Bought—Sold—Quoted
*'-7: 7/7

v; '

expected by.
anyone
wh o
understands

ket

the

to earth

Members

York Stock Exchange

Natl. Bronze'& Aluminum

England Co.

Thomas ,W. Phelps
not,/:wv
market because
there would be no one to buy
when all of the experts (and their
did

wanted

to sell when all

sell, and no
of the experts

that
is not, to disparage experts, but
simply to recognize the elemental
truth, that in the stock market
capital gains generally are made
by buying when the seller is mak¬
ing a mistake, and by-selling when
the buyer is misjudging the situ¬
ation.
In such a competition Jt is
recommended buying. To say

•

inexpert,

has been going

Cayuga & Susquehanna

" All

like a. bal¬
plunging.; hither and: thither
in the wind. As a whole, it repre¬
sents, a serious,
well-considered
effort on the part of far-sighted
and well-informed mep to adjust

Canadian Securities Dcp'L

such values as :exist or
expected' tP exist in the

prices to

Hanover 2-4850
& 1127

which

Goodbody & Co.
Members N. Y. Stock

Old Pfd.

Exchange and Other Principal Exchanges^ '/

115 BROADWAY
Teleohone BArclay

Frisco, Old Pfd. & Common

remote future.",.'
•*
"The
man; who ? as
a
woolen

seed the' demand for, his
goods suddenly disappear, or who
V/i''(Continued on page 1532/
merchant

NIW YORK 6> N. Y.

7-0100

are

not too

Teletype NY 1-672

Issues

-v

•'

GUDE, WlNMILL & Co.
,

Member*lfew York Stock Exchange

I, 1 Wall St.,

New York 5, N. Y.

] Dfgby 4-7060

Teletype NYT^OSS

Howard Aircraft

Available)

(Statement

Dixie Home Stores

"The market' is not

2000

Minneapolis & St. Louis E.R«

the

The process

2-9470

HAnover

Chicago, Mil., St. Paul & Pac.

and sell more
right'stocks at

in 1901:

CANADIAN UTILITIES

1-1126

Denver Rio Grande,

buy

I
8

YORK

NEW

;

Consolidation Coal
;

loon

Security Dealers Assn.

N. Y. 5
Teletypes—NY

him

Consolidated Film Ind.

buys

more' of the

and

Buckeye Incubator
.

stocks ' at* the

ables

ST.

•

;on

CANADIAN BANKS

sreettecmicompatu^
Bell

.•*'«'

Teletype NY 1-1140

(

Preferred,

37 Wall St.,

WALL

and
sells) the right
right -time./ As a
result he makes money, which en¬
who

* *"

Members New, York Curb Exchange
64

ket?

Frank C. Masterson & Co.

expert on the stock mar¬
Obviously he must; be. one

tutes

orirequest

Prospectus

can,^; What consti¬

Maybe, we

time,

ball

CANADIAN MINES

Members N. Y.

7:Wise and Foolish Market Money

expert to 'be right all the time
thairi' it is to expect .a champion

expect an

reasonable to

t'j ' fe*;

you/buying, oT selling?'?> It must
have been an order clerk who first
said, "Your actions speak so loudlv
I can't hear what: you say."
If
only we could know what all of
the experts were, doing/;

Pfd. & Com.

Gommodore Hotel, Inc.

by the simple query, "Are

right. time.; Those who are
or poorly advised, lose
money, which means that they can
buy and sell fewer and fewer of
the wrong stocks" at the wrong

CANADIAN INDUSTRIALS

United Piece Dye Works
&

markets,x pJe r t s

there could be no

V-

and cons brought down

pros

for years, for so imahy years,
that comes over the net.
In the
in fact, that it seems a reasonable
stock market a ^great deal of money
^assumption that wise money out¬
weighs foolish money in the stock
market.
The Dow theory is based
We Maintain Active Markets in U* S. FUNDS for
on that assumption.,; >• - ■
*
As Charles' Henry Dow wrote

Logansport Distilling

Common

of.

SagI-^e"

they

Bowman-Biltmore Hotels
'

120 BROADWAY, NEW YORK
Tel. REctor 2-7815 ;

Colonial Mills

Regal Shoe*

friends it is not uncommon
to hear .a discussion of stock mar^

:•

New York Curb Exchange

Northern New

had

(Va.)

Common Stock

among

thfe

BroadwayVVVHitehall 4-8120

Central States Elec.

tennis player to return every

Mc Donnell & To.
New

stock mar¬
might be helpful, but
To take such a poll

job was done, there still
a question whether all
answered- candidly.
Even

would

nature

When the

exam¬

ining table.
As might be-

one

Lincoln

ket experts

the

Members New York Stock Exchange

rapidly enough^ and to weight the
votes accurately enough Would tax
the resources of the Bell System.

v.;g

.■

/ Bell System Teletype NY 1-1919

run.

years,': the
once

A Gallup poll of the

market

: /

Edward A. Purcell &, Co.
■

10%""

: v•

Soya-Corp.

R< Hoe Common

there is none.

stock

v;r,*,aJ

mWM'M

be made by

decline in two

clients)

Common

Mar-Tex Realization
''■ v.*v

being right only
half of the time if one is careful
tb liixiit his losses and let his prof¬
its

Electrol

(f) the Recent Declines Merely

can

had

just
first

its

free

declining interest rates

show how

Byrndun Corporation

other.

each

reinforce

The purpose

Common

increase

price

by the farm bloc. It is
artificial to : distinguish

New York 5

31 Nassau Street,

jWagerpricev spiralj^fOyti-!-

demands
perhaps
sharply
between the* "push" and "pull"
forces because they mesh into and

fied

New

(2)

inflation lies in the now

familiar

Vanderhoef & Robinson
Members

individuals,

penditures,.and (3) the shortages
of goods and services. The "pull''
toward

Common

branch office*

ewr

Regal.
Magazine'Repeating Razor

"falls out of bed," there is a hue
determine first,what caused it to do so;

thing of im¬
portance. Hav¬

ing

and

increasing eagerness of busi¬
ness and individuals to make ex¬
the

Company
*

the

the experts to

broke any¬

Dr. James J. O'Leary

hands,

r^v

Average.

whether

i y

expanded
money supply'

400 shares

>r-

second

and

-the
s

enormou

NY 1-1557

Every time the stock market
and cry- among

factors, name¬

ly .v-j (1)

Overdue-^Coi^ectioi^'l' (3) Further Declines 4
Below the Rarige:©f

182-155 of the; Dow-Jones-

main

three

They Should Not Extend;

Are Probable, but

prices has its
origin
in

120 Broadway,

Represent Ja-- Long

h" :: to¬

ward

Stock Exchange
N. Y. 5

Members Baltimore

play. The

u s

Direct wire* to

Pont & Co.

Partner, Francis 1. du

Bull Market Has Not Ended;

brought

Phelps Explains the Dow Theory—Its Basia Technique, Its
Aims, and Its Place in Overall Stock Market Forecasting. Pur¬
suant to Dow Technique^ the Kej ia the Long-Term (^urs^ of Pricesr ;;.
Will Be Furnished With the Testing of Recent Highs and Lows. |
Meanwhile He Ventures the Following Forecast: (1) the Major

possible

every

HAnover 2-0700

Mr.

in¬

shiirp
creases

for

set

now

ft®

hand,

St., New York 4, N. Y.

New Orleans*La.-Birminghaiu, Ala.

PHELPS*:;

By THOMAS W.

not gotten

Bedford Rayon

New

25 Broad

MARKET SITUATION

ANALYSIS OF CURRENT

Thus far price rises have

Members New York Stock Exchange

Say Now?

What Does Dow Theory

price in¬

pulled into a spiral of
flation.

Qaatad

*~~

Fever for Spending.

1%; (2) the Funding of

Established 1920 /

Bought —* Sold

Macfadden Pub. Inc.
v.

■

pfd. &

Com.

I Southern Textile Issues

;

C.E.deWillers&Co.
Members New York Securttf Dealers Assn.

120 Broadway, N. Y. 5, N.
REctor 2-7630

Teletype NY 1-2361

Missouri Pacific, Old Pfd. & Com.
New Haven,

New York, Ontario
Old

For Banks, Brokers &

Old Pfd. & Com.
Bowser Inc.,

& Western

Old Pfd. & Com.

Old

St.

Pfd.

Boaght—Sold—Quoted

•

WHitehall 4-4970

Teletype NY 1-609

Simons, Unburn & Co.
.

Members New

25 Broad
H A-over

York Stock Exchange

St., New York 4, N. Y.

2-0600

Tele. NY

1-21908

/S/H/K; PORTER f/
JCOMPAXY, INGi=S;

•

L. Maxson

Prospectuses

Com mon S tock

Request

Trading Markets '<>

■

Members N. Y. Security Dealers

—

QVOTED

Pittsburgh

St. Louis

Stocks

IJ:.

Coj

8c Atlantic TelegrSph Co.

Southern & Atlantic Teleg.

Co.

Empire & Bay States Teleg.: Co.,
bought

INCORPORATED
37 WALL
*

STREET

•

sold

quoted

ESTABLISHED 1890

Tet. HAnover 2-9300

Arnhold and S. Bleichroeder
INC.

NEWTORK 5
v

Private Wires to Cleveland
-

J-G White 6 Company

Ass'n

Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
.
1

Detroit

Western Union Leased Line
Pacific

' ." *\

BOUGHT— SOLD

•>?/.

Troster.Currie & Summers
74

Jefferson-Travis Corp.
International Ocean Telegraph

•

Kingan & Co., Com.

Com.

LA.Saxton&Co»Inc.
70 PINE ST., N. Y. 5

Com.

Western Pacific

Dealers only

Fqoi$y$tem

:ilPratt Fresh Frozen Food

Common

Paul, Old Pfd. & Common
Old

Getchell Mine, Com.

Harrisburg Steel Corp.

Seaboard Air Line

^Maxson.

; Convertible $.50 preferred /•

■

Common
:

Rock Island,

Com.

Tele;.NY 1-1815

New York

30 Broad St.
11

3-9200

TVlpfvno

1-RTQ

.Volume'

Number 4474

163

THE COMMERCIAL & FINANCIAL CHRONICLE

AND COMPANY

ByOPROr. PIETERXIEFTINCK

■

Minister of Finance*: The Netherlands

Dutch Financial
Problems

Representative Analyzes His Country's Postwar j
With Reference toBoth Internal and External Capital 1

| i Movements, and Asserta That in These Matters Holland Is Now
|| Facing: a Situation More Difficult Than in a Century.. Telia of
:

<•

—but

Progress in Monetary Stabilization and in the Regulation of Internal ,
Capital Movementa Through Blocking of Cash Accounts and En- j
forced Registration of Securities.:; Looks to German Reparations \
as an Aid in Stabilization, but Points Out Nation's Need for Foreign
j

/■</"

Holland and Its Colonies.

Readers of the "Chronicle'' may. : be

Interested in what

S'V''

Netherlands,

■;>/1- /;

,•

gBr
W

as-

internal

aspects I
thin k,

Artists

United

Dye Works

United, Piece
Huron

the

/ *

;i$*-vclo.seiy^^hhe^e4'i with

and

pects.
the

YORK

NEW

STREET,

Holding Co.

!; Brunswick Site

lem. has- in-.
ternal

Securities Dept.

Obsolete

may

prob-

external

called the: problem of "capital in circulation" that now confronts
This

old time.

Telephone WHitehall 4-6551

Credits to Offset Loss Through War of FormeF Means of Meeting |
it* Excess Import Balances •- Notes Holland's Substantial Invest- j
menis Abroad as a Credit Baseband Invites American Capital In- [
vestment in

sell

any

obsolete goods

WALL

can

You,

will.

bill

•

I monetary agreements, .which

? i

I
■
K-: 'iK9B

amongst other

;

have and wid ? make/with other
countries. The f pxpblem. of Ger j
man
reparation payments may
also be considered. fMS-i /
' ■
'

Finally

H^Bl

the
we

Members New York Security Dealers Assn.

Broadway
New York 6, N. Y.

part of. the^ capital id

Iflnover 2-8970

Teletype NY 1-1203

circulation: has: both an internal

things, of the

and external: character. l am now

measures

referring / to

which

had

/enemy / property,
which for the Netherlands will be

be taken with
Ams

AMERICAN

Although
these possessions are located in

in great, part German.

■■

regard to the

terdam/HBijH Holland, they have-assumed

PHENOLIC

CORPORATION

stock; exinternational /aspect '» since- the
change I anParis conference on reparations
the

now

imr

pending/ registrationi

title

this; we- can

Lieftfock

"Chronicle" Correspondent Gets Views and Opin-

(Continued on page 1514)-

"Capital in Circulation" as a

Request

agreements were made there-.

we wish to discuss;*the- various
kmdseafi "Capital in Circulation,?
interpret. thA I suggest, we start?, with that part

pieter

securities. Besides

Analysis

wJHHHHHB has dealt with it.'and/ certain

ioiif ^Representktiyes p£ Various,
in£ Meeting o%Wor^

i
'J

j
j

I SAVANNAH; GA.—Cdntinupig his task of getting the viewd,
^arge array of prominent represent

opinions and comments of" the
•'

*:'

•.v

•

tatives of this and other nations, the "Chronicle'*

■//There

was a general willingness among the for*
eign visitors of: all ranks and degrees of impor-f
,f tance.ta* present' theii1 statements./
; r '
f

TRADING MARKETS

B//// Soya;Corp. //-

..//JMexico's Representati ve Speaks

Thiokol

^
At>.the request pf the "Chronicle " ^Mexico'i
Governor*1 of the Fund and Bank and Ambas-

■WT\ corespondentmetwithconsiderable-co peration.

Wilcox-Gay

sadoir too Washington, Antonio*. Espinosq de log
\ Monteros,' submitted the following: statement: - i
■

;

lias

of" a' great.number-of
createdin Mexico many
fundamental economic 'changes, some of which
may become permanent.
Among the economic
effects of* war'may be-mentioned the increase
in the general level of prices
qnd costs of livings
"As,

been the

countries, the recent

Corp.

Billings & Spencer
Corp.

Kinney-Coastal Oil

case

Reeves Ely Lab. Pfd.

war

r"Althp'ugh -attempts werer made to control prices/

Members New York Security Dealers Assn.

170

Broadway,
Bell

achieved because/the
peculiarities^ofiour econphai^structih^have; not
*
.'* /
* •;
yet;revealedvrith:any degree of-clarity \yeaponi
of price control such as: are effective in, other countries;.
>
;
?
"
,
''
*
' /
a.e.doio» Monteroa.,
-

only-partial

WOrth

System

2-0300

Teletype NY 1-84

was

success

•

"Among the

important economic

(Continued1

consequences

war

1525)

on page

Haytian Corporation

with

Punta Alegre Sugar

Eastern Sugar Assoc.
i

are

interested in

offerings of

<-/v •'

U. S.

High Grade
Public Utility arid
>

Industrial

2^.Broad Street. New York-

Telephohe'HAnover 2-4300

'f •:■ r

Teletype NY 1-5

WHitehall 3-0272—Teletype NY 1-956
»vl

Pivots,iWire tor Boston.

Trust Co.*

General. Panel Cont.

& Pfd,

Common & Preferred
"National

STRAUSS BROS
Members

32
/

N-.

Security

Broadway

NEW YORK 4

&
■

CHICAGO 4

HOIX R63E S Irqster

J
_

Harrison 2075

Teletype CQ139-

Direct- Wim Service

New

Co.*

■

^Analyses available
to, dealers only ■-

Board of Trade Bldg.

DIgby 4-8840

Radiator

Bought—Sofd—-Quoted

Dealers Assn.

Teletype NY 1-832. 834

\' /-'• v. •». v-,

25 Broad St., New York 4, N. Y.

Lawyers Mortgage Co.

D Members Nevi York Stook Exchange

• -41.,il•'y.'

Members Neto. York Security Dealers Assn.

American Bantam Car

Boot & Mtge. Guar. Cflu

40W.U S,., NX S . WHitehall 4-6330
Bell Teletype VY1-3033

..'/'J-/- y

Public National Bank

CERTIFICATES

Newburger, Loeb & Co.

..;•

DUNNE &CO

TITLE COMPANY

Sugar

Pressurelube, Inc.

Members Neui York Stock Exchange

i Prudence Co.

PREFERRED STOCKS

N. Y. Title & Mtge. Co.

General Aviation Equip

^Spencer Trask & Co.,

Lawyers Title & Guar. Co,

»*"* ■'1

-V /*/*"/■*'""

Lea Fabrics

York—Chicago—-St. Louis

Kansas City—Los Angeles /;

ESTA^nSHED

19T4" -

' "

Members N\

74 Trinity Place, New York 6, N. Y.

Telephone^-

BOwling Greem9-7^00

•

;

,:v

C. E. Unterberg

Teletypes:

NY 1-375 & NY 1-2751

& Co,

Y. Security Dealers

61 Broadway^ New

Ass'n

York 6, N. Y,

Telephone BOwling Green 9-356$
Teletype NY 1-1666

THE COMMERCIAL & FINANCIAL CHRONICLE

1496

WARD & Co.

The Economics of;

Policy for Peace
By HON. JAMES F. BYRNES*
Secretary of State

«T. 1926

Collective

Thursday, March 21,

U. S. Spokesman on Foreign Policy, Though Expressing Faith in
the United Nations Organization as a Path to Peace, Urges That a

Strong Armed Force Be Maintained, That the Draft Act Be Ex¬
tended and That Universal Military Training Be Adopted.' Says as
Long as Other Nations Remain Armed, We Cannot Afford to Be
Militarily Unprepared. Wants No Alliance With Britain Against
Russia or With Russia Against Britain, and Urges a Firm Confidence in the Right/ Patience and Understanding to Assure a Fall

;

Air Cargo

Traiisportt :

American Bantam Car
Com.

and Permanent Peace.

Pfd.

S. F. Bowser

American victory alone.

The victory'

was

the Axis

together

But

liance.

Americans

Douglas Shoe*

uted

General Tin

guns

rades

Kaiser-Frazert

Japan.

icans
are

the?

M. Lowenstein & Sonf

that

cans

Pfd.

Missouri Pacific

and

Mohawk Rubber9

New
'

Fireproofing

England P. S. Com.

Polaroid Com.

Kellys

Sheas

and

troubled

in these

are

anxious

the^ future than to the
consider what

must
in order to insure that the

Our

whose

we *

have not

men

Military Strength

Consequently, I desire to return
to

subject to which I referred

two

in the war's roll of

weeks

ago,

civilian authority.
Even in the midst of total war*

The American soldiers and
(Continued on page 1535)

pie.

Oxford Paper Com.

& Pfd.

Bowser Inc.

Sunray Oil 4%% Con*. Pfd.

Cliffs Corp. Com.

If the

wave
"

reconversion,"'

■-

'"\v

Warren Bros.

Pub..

''.V

r' ■

(SS'"rl

with

in the 1930's

much
deeper, a basic
of

tion

lightly
Then

our

economic sys-

tem

our
sys¬

the

and

individual
t

r an s

terprise

P- Schmidt

Dr. E.

parts of

War.

caused

first World

the
a

less

complete displacement in numer¬
ous countries, during that war or
during the inter-war period, of
the system of private

personal

competitive

freedom,

new

nomic and political systems

eco¬

under

*An address by Dr. Schmidt be¬
fore the Harvard Law School Fo¬
rum,

Government

our

the the¬

environment under which

world* with

the

public

that the best way to prbmote
the public welfare was to create

forma-

started
many

hold

ory

Cambridge, Mass., March 15,
"

1946.

was

ish and an adequate volume * of
well-paid jobs would tend to fol¬
Each person was

low.

within his

privileged,

and

ability, to
job-maker, job-seeker or
self-employed. A scarcity of jobs
means

become

would

corrected

in¬

vestment in job-making facilities.
This system had it weaknesses; it
did not operate

perfectly.

Tem¬

porary setbacks occurred. But few
men would say that what we sub¬

stituted has the earmarks of per¬
fection.

In the 1930*s when

had

shortage of job-makers and

plus of job-seekers

M. Lowenstein & Sons*

en¬

fostered.

By making
property : secure, investment' in
productive facilities would flour¬

a sur¬

tried t6

by making

the life of the job-maker tougher

(Continued

industries

Homestead Fire Ins.
•

Prospectus

Beg. U. 8. Patent Olflee

^Electronic Corp.

•,

•

23 Park Place, New York 8
REctor 2-9570 to 9576

REctor 2-4500—120 Broadway

^Simplicity Pattern
f Le Roi Company

Herbert D. Seibert,

System Teletype N. Y. 1-714

Bell

Publishers

Established 1908

fYork Corrugating

and

William B. Dana Company

Members N. Y. Security Dealers Assn.

^Princess Shops

The COMMERCIAL

105 West Adams St., Chicago
Teletype NY 1-672'

*Dumont Electric Corp.

1522)

on page

financial chronicle}

request

JJUHce,Jr.&£oi.'

Iowa Pub. Ser. Com.

discovered

prestige

Until the 1930's

actually

o n

and

1930's.

depression,
the, promises

and laws were based

The

society.

stress

hat they could use
labor to secure and

sinecures

American Gas & Pow.

Derby Gas

middle

politicians

the

foundly
political

Goodbody & Co.

Cent States Elec., Com.

the

Members N. Y. Stock Exchange and Other Principal Exchanges

Broadway, New York

the

under

which

tem

until

will alter pro¬

t i

'i tss

This transformation touched

tran sforma-

correct the imbalance

Textron Wrnts. & Pfd.

Telephone BArclay 7-0100

:.I—in

dominates both

States Transformed

United

thing

Alabama Mills9

J United Piece Dye

state

he individual and the economy.

some¬

Greater New York

115

n ,

the

confronted

Sold - Quoted

which

Great American Industries

Bought

;

ned.

we m a

of labor disputes since V-J Day-were merely "labor
a let down due to wartime
restraints, no one would

become very
con c er

Solution of Labor Problem/ '1

United Printers & Pub. Com.

Croweii-Collier

United Drill "B"

Human Relations

Ayeha^fe; maintainedthis prihci* enterprise with its political and

Art Metals Construction

Upson Corp.
U. S. Air Conditioning

now

that

Recommends

Employment and

Wage Payment and Calls for More Education in Economics and

place of the

*An
address
by
Secretary
Byrnes before the Friendly Sons
of St. Patrick, New York City,
March 16,1946

Pfd.

Sylvania Industrial
Taca Airways

yt%.,

not

been in vain.

North'n New Eng. Co.
—

honest

N. y. New Hav; & Hart.
Old

will

the
military
honor.
strength of the United States.
These Irish lads came from the }4 We Americans love peace.
We
cities Z and the farms, • from the are a nation of civilians, not sol*
factories and the fields.
It is fundamental to our
They diers.
came to the decks of our ships, to
system of government that mili*
the cockpits of our planes, and to tary authority be subordinate to

names appear

National

take

in the number
Burkes

you

sacrifices of these

Ameri¬
and faith. BUt

struck: toy

of every race
of Irish blood

pride

James F. Byrnes

bywere

know

past—to

blows

struck

look

turn

America

Maxson Food System

Old Pfd.

;

aware

deeds

days

Irish Amer¬

Lear Inc.

and

forgotten and there will
opportunity for more
gifted Irish tongues to tell the
tales of their gallantry.

defeat

the

But

names

the

be many an

themajor part
in

and

soon

that'we played

Hartford-Empire Co.

Patrick

names

their

and

Europe

Gt. Amer. Industries9

Conv.

Nazis

and

St.

deeds of these Irish heroes.

defeat

of the Fascists

Getchell Mines

victory would be ours.
does not permit
to recite to you Friendly Sons
time

Government

Fundamental Reexamination of Entire System of

and the guns of their com¬
began to sound, it became

Tonight

Holds

and Reports

Have Not Been Obtained Without Unions.

creases

They

the

certain that

mightily

the

tanks.

our

Intervention by Publication of
Favoring Wage Increases Has Been Ex¬
ploited in Labor Union Literature, and He Denies that Wage In¬

contrib¬

w e

Demands.

Statistics

not an

landing barges and
to the foxholes;
And when their

proud that

are

General Machinery

came

al¬

powerful

Dayton Malleable Iron9

—

the turrets of

welded

Disputes Is a Carry¬
over From Prewar^ Wheni a8 Result of Depression, the
Purchasing
Power Theory of High Wages Was Enthroned.
Says Purpose of
Collective Bargaining Is to Destroy
Competition for- Jobs, to Fix
Wages by Pressure, and to Unite AH Workers in a Plant to Enforce

coun¬

tries

;

Dr. Schmidt Contends That Wave of Labor

by the peoples of

won

■

many

Chicago R. I. & Pac.

was

Bargaining

Director of Economic Research,
Chamber of Commerce of U. S. '

over

By EMERSON P. SCHMIDT*

"We Americans realize that the victory

1945

Editor and Publisher

■

William Dana Seibert, President

William D. Biggs, Business Manager

Thursday, March 21, 1946
'Prospectus and Special Letter Available

Paget S'nd P. & L. Com.
Spec. Pfd.

Members New

York

COLONIAL MILLS, INC.

Security Dealers Association

52 Wall Street

New York 5,

Tel. HAnover 2-8080

■fProspectus Upon Request
or

FIRST COLONY CORPORATION

Stand. Gas & EL Com.
'Bulletin

AMERICAN BANTAM

Published twice

(general

N. Y.

tation

♦.records,

WARD & CO.
EST

11®I1

1926

ruary

vir
-

v.".

Descriptive

'-i'V/ '

Circulars

request

J. F. Reilly & Co., inc.

Members

Seligman, Lubetkin & Co.
Incorporated

Bos. 2100

/■

■

:N:,;

Bell
■

•/

Broad

Street.

New

York 4

•>

•»'

HAnover 2-2100

York Security Dealers Assn.

40 Exch. Pl.f New York

Members New York Security Dealers
Association

^:V

New

ENTERPRISE PHONES

second-class matter Feb¬

Subscriptions In United
Possessions, $26.00 per. year;

r'.-: v:.;>■V

•

HAnover 2-478S
System Teletype, NY

1-2733-S4-35

Private Wires to

Boston, Chicago &

";v"

5, N. Y.
.

Canada, $27.50
Central
America,

per

Cuba,

year;

States and
in Dominion
South

and

Spain,

Mexico, and
Britain,
Continental Europe (except Spain), Asia,
$29.50

Australia

and
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per

Africa,

Great

$31.00

per

year.

•

Otlier Publications

Record—Mth.$25 yf.
Monthly Earnings Record—Mth...$25yr.

Bank and Quotation

NOTE—On account of the fluctuations
in the rate of exchange, remittances

Los Angeles

B. Dana

25, 1942, at the post office at New
N. Y.; under the Act of March

3, 1879.

WELLMAN ENGINEERING CO.
y-'-

York,

v-v;

HI.

Prospectus on Request

{

Offices:

Reentered

UPSON COMPANY

1-1287-1288

Buff. 6024

■!

-no'}

•

Direct Wires to Chicago and Phila.

Ilartf'd 6111

Bought--:Sold—Quoted

TENNESSEE PRODUCTS

120 BROADWAY, N. Y. 5
REctor 2-8700
Y.

KENDALL COMPANY

Members N.V. Security Dealers Assn.

.|/

135 8. La Salle St.,
(Telephone: State 0613);
1 Drapers' Gardens, London, E. C„ Eng¬
land, c/o Edwards & Smith.
Other

Chicago

GALVIN MANUFACTURING CO.

banking,

corporation,

clearings, state and city news, etc.)

'THE'MeBEE COMPANY

(Makers.of Motorola Radios)

and advertising issue)

(complete statistical Issue-^market Quo¬

jkioi

Circular upon request

week

fand eVeSry Monday

LOGAN?P?RfDISTJLLINC

Teletype-NY'l~242i

news

Thursday

every

Southeastern Corp.
,

^Statistical Study orSpecialLetteronRequest

lot

foreign subscriptions and advertisement*
must be made In New York funds.

Volume 163! Number 4474

THE COMMERCIAL & FINANCIAL
CHRONICLE
•

OriginalCost Techmques
Conditions Affecting
Threaten Utility Equities
Railroad Values
By W. TRUSLOW HYDE, JR.*

By ARTHUR C. KNIES*

Public Utility Analyst, Josephthal & Co.

Mr. Hyde Contends That tfie
Basing of Utility Rates
Costs Is Faulty During an

Original
Inflationary Period in Giving the; Con*.
turner a
Windfall, and in* Penalizing the Stockholder Who Receives
the Same Dollar. Dividend
Having Reduced Purchasing Power.
This Threatens the Ability of Utilities to
Accomplish Equity Financing During a Period of Rising Prices. He Asserts That the Original
on

trend

Smyth
fair

vs.

value

the

problem to investors and
which should make them par¬
ticularly cautious in buying pub¬
lic utility equities in the event
one

decision,
Supreme

Court

owner

serious

-which, in its
Hope Natural
Gas

and give

it to the cus¬
tomer during a period of rising
prices. It, therefore, presents - a

$ theory

Ames

counting regulation, will effec¬
tively take the plant away\ from
the

enter a postwar inflationary
period.
1
\
t
The fallacy in the original cost
yve

said

(

was

longer

operations

Securities.

safea

storm may

long

Bank of Nova Scotia

Bank of Toronto

when I
took
a
rest) including the Su¬
preme Cburt argument in the Rio
Grande case, and, frankly, I don't
feel as though I have recovered
my equilibrium yet.
In the beginning, also, it seems
appropriate to, again state (as I
have on so many occasions) that
in the railroad field, just like an.y

mild.

was

Jjl

our

dominant. K:^P

thought when
turrxed

Jkjm

te)nporarily
bearish

% two

is the

that much in-

his income should reflect the fair

terest' lies

Value of the property he owns; If,
during; a period of rising prices,

the

proposed

new

property in¬
creases, his income should show a

izationlegisla-

to earn a fair re¬ commensurate rise so that his
original cost of its purchasing power remains con-*
properties and recover sufficient stent. Under original cost theories,
depreciation to recoup the dollars a
plant
which
cost
$1,000,000
invested in its plant. Claimed to would be limited for all time to
be the only fair and equitable and an
earning power of $60,000 sub?*
the only scientific approach to ject only to a
changing rate of
monopoly regulation, this specious return to reflect the cost of capi¬
theory, which has been nurtured tal. Supposing, however, that the
by the Federal Power Commission purchasing power of the dollar

oh I will give

present

Fund ament-

ally, the orig¬
inal

cost

con¬

cept permits

utility

turn

value

his

company

the

declines ' 50%

♦An

equity and that

by Mr. Hyde be¬
fore the New York Society of Se¬
curity Analysts, March 8, 1946.

time. In such

Andian National Corp.
Assoc. Tel. & Tel. $6 & 7% Pfd.

Brown

.('•

■

§??

you

Canadian Western Lumber

shipments

Electrolux

International Utilities

they

Jack Waite Mining
i

*An i address by Mr. Knies be¬
fore the Central States Group of

| flHHBHHI

the

re;

In self defense, I should say
just- about all the

attended

hearings in Washington (or had

Investment

Bankers

York Stock Exchange,
*

(Continued

Noranda Mines

Associa¬

Pend Oreille Mines
Sherritt Gordon Mines

Steep Rock Iron Mines

;

Sun Life Assurance

1533)

on page

Teck

COAST-TO

COAST

Hughes Mines

HART SMITH & CO.

Direct. Private Wire Service

over

WILLIAM ST.,
'

•

Bell

Chicago

St. Louis

Kansas City

■s

....

Broadway

Board of

NEW YORK 4

Trade

CHICAGO

Securities
Bldg.

4
(

Harrison

DIgby -4-8640

Teletype NY 1-832-834

Toronto

Montreal

Curb and Unlisted

Members Nepj,York Security Dealers Ass'n

Common Stock

HAnover 2-09M

Los Angeles

STRAUSS BROS.

Suga r Corp.

N. V. 5

Teletype NY 1-3951

New York

NdwYork

Minnesota & Ontario Paper Co.

tion, Chicago, 111. March 19, 1946.
Mr. Knies is a partner of Vilas & j
Hickey, members of the New

Arthur C. Knies

Dredging

Canadian- Pacific Rwy.

industry,

good; bad

Goyernment

actionsonthat
score.

Company Com. & Pfd.

Bulolo Gold

we have all types
and indifferent, and
now that the roads are no
longer
receiving the- high proportions of

and later

United States

other

know, too,

a
period 1 of
event, the stock¬
holder; who invested his money
(Continued on page 1521).

address

•

Imperial Bank of Canada
Royal Bank of Canada

reorgan-

the

Dominion Bank

representative

•

Canadian Bank of Commerce

<s»-

short,.

severe or

This

the

—

utility rates.

owner

industry—by

Bank of Montrea)

•*

•

anchor-

g e

in establishing

ary

nsideration

the

had "normal"

CANADIAN

Presently the bearish factors overshadow* the' bright side of .the
picture. If storm warnings are up, it would make sense to seek a

months, ago.

n e c e s s

SECURITIES

Freight Rates May Be Increased Up to 20%. Sees Some Rc-»a
Pending Rail Reorganizations and Concludes That ^
the Long-Term Future Is Bright for Better Class of
Railroad

.doctrine is that it fails to recog*
nize that a common stockholder

c o

"gaff" year.it has been

know,

long time since

under/the" guise of legitimate acn

the

1946 is

you

That

4b*

away

from

stand the gaff better than the

arrangement of

original cost
regularity that it is no longer

dangerous

physical contact or ex¬
ertion, the team in best condition
can

Field, and

Individual state commissions have been
adopting
for rate making
purposes; with such
o

the old

companies
cropping, out again. As in any

are

Will Be in Favor of Increased Rail Rates in Order to
Compete.
Holds Rails Are Becoming Stronger in Transportation

Capitalization in Preventing Enter¬
s-prises From Collecting Sufficient Depreciation Funds to Rebuild
Plant at a Price Level in Excesi of
Original Cost.

;

between

May Be Able to Stand the Gaff of Normal Operations. 'Says Truck
and Boat Lines Are
Suffering Losses and for This Reason They

Cost Basis Undermines Sound

ppssible to
ignore the

contest of

others.

Broker-Analyst,in Reviewing .the, Railroad Prospects, Points Out
That Despite the Flush Business of
War, and the Reduction in
:; Interest .Charges, * the Position of! Individual Railroad
Companies
Will Again Bear Close
Watching and Only Those in Best Condition

handled during, the war,
differences

Teletype

2075

•

v--

■«

*"V

^
-'vo"

„•

"'R/-

Vv,

•'lV'.1

MICHAEL HEANEY, Mgu

129

WALTER KANE, A*st. Mgr.

Incorporated
«.

5ft

-r

White & Company

■

Baum, Bernheimer Co.

BROADWAY,; NEW Y0BKL 4

PHILADELPHIA i,

S§*§|

BOSTON

KANSASC1TY

..-'v

WHitehall 4-5263

Pledger & Company, Inc.

Y- ^PriVaU Wires to Principal-Offices- '

Members New

active market in

York Curb

Exchange

PAkflM Stgfik Exchange
>

New York •

Teletype NY 1-1410

CTIVE MARKETS:

Quarterly:dividend paid jJanuary 15^ 1946*—$.75
.

Kinney-Coastal

Dig by 4-3122

PANAMA COCA-COLA
We maintain

yv "

39 Broadway .

•

Joseph McManus 4 Co.
VI.

LOS ANGELES

WASHINGTON

Oil

Dividends paid 1945

—

DI-NOC CO.

$2.25

Approximate selling price

—

r.-/..•■V,V.r

Utah Southern Oil

^.New Analysis

on request

SOYA CORP.

HoiiRsseSTrsster
ESTABLISHED 1914

Specialists in Soft Drink Stocks

JAME8 M. TOOLAN & CO.
67 Wall

Street,

;,r ;r^i^,tHarviIL;Corp,- ■■»:

Rademaker Chemical

Stand. Fruit & S/S

Request

ji[

•

Cprn. & Pfd.

NewYork, New Haven & Hartford, old
St. Louis & San

Stove"'

Tel. BA 7-5161

New York 5, N. Y.
Tele. NY 1^-2078

& pfd.

common

and pfd.

Francisco, old common and preferred

Members New Orleans Stock Exchange

Quotations

Bo. 9-4432
Bell

■'

•

New Orleans 12, La.

Carondelet Bldg.

Tel.—NY-1-493

MEMBERS

;
.

Wall

Incorporated^

Street, New York 5, N. Y.

;

ASSOCIATION

120
7-

Bell Teletype NY 1-897 :.

'"-j

FA It It

New

•

SECURITY DEALERS

Upon

^v.-/ "J 'V

Members

FREDERIC H. MATCH & CC.

Alegre

Sugar Corp.

T. I. FEIBLEMAN & CO.
31 Nassau Street

com.

Missouri Pacific, old common and preferred

New York 4, N, Y;
41 Broad St.

DIgby 4-2370

N.V. 6

Punta

•

PETER MORGAN & CO.

39 Broadway,

Old Colony Railroad

Chicago, Rock Island & Pacific, old

United Piece Dye Works

: United'

Analysis

NY 1-2751

™—^Bostoh & Providence Railroad

Reda Pump

One. of the most promising

Lane-Cotton Mills Corp.

of America
Present Market about

NY 1-375 &

Teletype NY ^-1942

Jeff. Lake Sulphur Com. & Pfd. \

companies in its field.

SIEGEL & CO.

Teletypesr

BOwling Green 9-7400

Wk'TAQtyfe, 'HTj.t^30

Soya Corporation

;

Trinity Place, New York 6, N. Y.

Telephone:

New^JifoM

Telephone HAnover 2-93?$

York

New

-i-'-Tr!"

York

Request'
"7"

hc-i'-i,

/■

CO.

Stock

Exchange

Coffee & Sugar Exchange

WALL

ST.,

NEW

YORK

TEL. HANOVER 2-9612 '

Thursday., March 21, 1946-

THE COMMERCIAL & FINANCIAL CHRONICLE
1498

■

A Policy Toward Russia

Predicts "Dramatic Moments" for UNO
Sir Alexander Cadogan Points Out the Preliminary
Question Presented by the Soviet-Iran Issue
WILFRED MAY

By A.
NEW

•'

March 20—"The meetings of the UNO Sebeginning next Monday are sure to produce dramatic
% moments," i s®"
the prediction, behalf of the capital needs of ten
member
agencies of - the Com¬
of Sir Alexan¬
der
Cadogan, munity Chest of the Oranges and
representative Maplewood, N. J. Mr. Olsen's ap-I
pointment as General Chairman''
of the United
King dom in of the fund-raising effort, which
the
Security will be known officially? as the:
"United Campaign for .Health and
Council
and
the -Atomic Youth", was announced on Mar.',
14
by i Brian P., Leeb of \West
Energy Com¬
mission. In a Orange, President of -Joint Cam-,
press
confer¬ paign Fund, Incy a philanthropic
ence
held to¬ corporation recently formed to re¬
day he stated ceive? and distribute, all money

big

raised.

pre-

•

1 i

a r y

question
fronting

con¬

"dispute."
If
it Is adjudged a dispute, the So¬
viet Union will be prevented from
Issue constitutes

% .•

L—

—

tinue its relief

ange,

$37,840; Social Welfare
Council, for a camp project to be
directed by a joint committee of
the
Scout And. Y organiza-*
tions, $10,000; and the Orange
Memorial Hospital and the New
Jersey; Orthopaedic Hospital and
Dispensary, whose combined re¬
quirement of $925,000 covers the;
first step in development of a

in
Russia,though
he personally

formal resolu¬

otherwise becoming vul¬

nerable to dangerous controversy.

Olsen Heads Campaign
for Community Chest

Oranges

medical

Orange,

center

heailth needs of the Oranges, Ma¬

N. J.,

Assistant to the President of
the New York Trust Co., of N. Y.
will head the campaign for $1,515,500 to be carried on this Spring in

country

The

County.

cam¬

paign will be launched in May.

NilesCrane

Shepard

Hoist Corp.

t h

endorses

positionstaken

Gov¬

our

ernment in op¬

posing certain
a

ctions and

poli¬

foreign

cies of the So¬

viet

W. Averell Harriman

Govern-

Harriman

stated

Society has given us
all the ^opportunity,
which we
have welcomed, to express to; the
people of the Soviet .Union our
sympathy for the great suffering

gram

your

criminals

aggerated—to express our admir¬
ation for their
''\Y» 'V-'.

"Sports Products, Inc.
>

* Circular

request

valiant resistance,

all, against the invader,
and then, later, our respect and
gratitude for the great part they
played in the ultimate destruction
one

and

our common enemy.

"Now that the
that there

HARDY & HARDY
11

will never

shattered world.

thus hastened the end of the war.,

with

discuss

you this last question first, since
it is, in fact, a basic question. I
want to discuss this quite openly.
It is through frank and open dis¬
that people in America

cussion

their

decisions.

Open' dis¬

war

are some

over

I find

questions that

"I cannot stand before you arid
the
differences
that

•

minimize

havd arisen between

our

two Gov-?

ernments since the end of the war.

1 must state that I, personally, en¬
dorse the positions

that have been
in op¬

policies of the Soviet Government.
opinion of our Govern¬
ment that,: in these matters, the
Soviet Goyerriment has not car¬
ried out certain agreements as we
I share the

understand- them.

have

been

glad to learn that our Government
is taking a clear positioh based on
the principles "of the United Na-^
in

Charter and the principles
the American' people

which

people about the continuation of
There
are
questions as

pression that in this our Govern¬

whether

to
WHitehall 3-4490

ed.
to

relief

There
whether

are

still

need¬

questions

which

ment has the support of

•'

the

over*

the leading capitalist nations, es¬
pecially Great Britain, tried to do
to it from 1919 to 1921.
They
know what certain of the military;

•

■.

'
,

•

■*"

•, 11

(Continued

page

party

ing and saying today.
And just as some military men

profess that the only road to peace
is atomic bombs, bases, huge ap^i;
propriations for armaments and
Arctic expeditions, so the Soviets ;•
may feel that the Phly road t6 :

J«

for
They have gone further
have started giving their tats'

Continental

Master Tire &
Rubber

manufacturing contract extended through 1954.

•

We make sizable trading market*
For further information and current market call

Blair F.

'"'t'

f1 %

i. a

for

All American Aviation

sian

Members Philadelphia Stock Exchange

press

has plenty of material

HARRISON & SCHULTZ

members New York Stock Exchange #

associate

mernbgrs N^XiQurb Exchange

aircraft corp.
Helicopters

Thonie HAnover 2-7872 Tele. NY 1 -621

fetephone vrllAnover 2-6388"

Brockway Motors

Baker Raulang

Powered Fighter Plane

Detroit Int.

Bridge;

Secretary Wallace

Address by

the

before

American Society for

Relief, Inc.,
City, March 19, 1946.

Prefetred

Common

Hartman
-

CO., Inc.

Ill

BROADWAY, NEW YORK 6, N. Y.

BArclay 7-0570

P. J.

Steiiidjer & Co.

S. Weinberg & Co.
Members N. Y. Security Dealers

PETER BARKEN

Members New York Security Dealers Assn.

32 Broadway,

11 Broadway, New York 4

New York 4, N. Y.

60 Wall Street

Digby 4-0330

1-1340

Tel. WHitehall 4-6430

New YerkJL,' y

NY 1-1026

Tobacco;;%

Preferred

Members N. Y. Security Dealers Ass'n

American Beverage

Common & Preferred

F. H. KOLLER &

1512)

A. Frank-Guenther Law

„

Patlie Industries

REQUEST

on page

Tele. HY 1-2500

Ass'nv

Telephone

•

;

]

York

New

Industries

Eliminator

America n Insulator
;

MEMORANDUM

BengueA.Cons. Mines
iGreat American:

Carbon Monoxide

Crescent PuIj. Servl1

Designer and Builder of Navy's first "Pure nll-Jei"
.

evil ends.

Russian

ark

64 Wall St., New York 5

(Continued

Manufacturers of Airplanes and

Undoubtedly the anti-Rus- j

BURNHAM & COMPAxNY

72 WALL ST., NEW YORK 5, N.Y.
WHITEHALL 3-0550
Tele. NY 1-2178

Jjjt McDonnell

machines arid j

possible-capitalist-provoked

war.

to use for its own

Claybaugh &. Go.

Harrisburg-Pittshurgh-Syracuse-Miami Beach

Bought—Sold—Quoted

Dept. 7

for science and

feel that time is short to prepare,

Airlines, Inc.
i,.

They fear capi¬
talist encirclement. They are hunboundary secure.

gry

.firsts. They are out to make every

"DiTdend p.ayer" *n a "Growth'Company". 1st quarter 1946 expected
i°
ft?*"* *n Comfort" history. Has large supply aged whiskey on
ComPany's
hand.
Southern

and security is for them to;

every tat.

1511)

Chicago and
Southern Airlines, Inc.

* >
*

capitalist nations are think¬

in the

give the capitalist nations tit

Getchell Mines

No Bonds—No Preferred

Nations

peace

transcends

support

-m

Common Stock
f

''-r

Soviet Union knows; wtiat

The

and

lf'

•

This

For Dealers

Merchants Distilling Corporation

■

Russia's Fear of Capitalist

whelming majority of our people.

UNRRA,

posing ;certaiii actions and foreign

have profound faith. It is my im¬

relief.

I say 'All honor to AdmiralStandley, Ed Stettinius, HarryHopkins, Averell Harriman and
all the others who, acting under,
the
magnificent leadership; of
President Roosevelt, saw so clear-*
ly the need for prompt help to;
Russia in the fall of 1941." Russia:
pwes the-United States and these?
men an undying debt of gratitude, •
The U. S. owes Russia an undying,
debt of gratitude. The citizens of
the Soviet Union paid a. heavier'
price for our joint victory over,
fascism than any other people.

taken by our Government

tions

extent

to.
Which Ambassador Harriman fa-;
cilitated the rapid transportation;
of lend-lease goods to Russia and

political and economic problems
{hat. face the peoples of this war-

reach

the

fully appreciate

have arisen in the minds of many

Broadway, New York 4, N. Y.

Teletype NY 1-960

cooperating with ns, whole¬
heartedly in the way we had
hoped for in solving the difficult

would

Htory A. Wallaca

ples.The world

hot

our

two great peo-

Union when it appears that she is

closest

between

Soviet

the

deeply he

the

cooperation

racy.

wrought upon them—I can
assure
you
that the reports of
their suffering have not been ex¬

Superior Tool & Die

should be called upon

relief

know

feels the need

And,
xjuestions as - to

address, Mr.
that "the pro¬

In the course of his

have

continue

how

Yeddirements.

cussion is the basis of our democ¬

that* Hitler and his Nazi

*Bost, Inc.

whether

that

time

>ment.

plewood and adjacent communi¬
ties of Essex

con¬

program

current

meet

t o

with

had

him

there are

ley, South Orange and West Or¬

technique of getting
directly into areas of agreement

Olsen,

From the long

conversations

lastly,

urged

cil of the Boy Scouts of America,

Tashkent.

bassador

and Maplewood Coun¬

that the Council begin its deliber¬

Albert

Asia

viet

the

ations with

in Central So¬

Alma Ata and

bover

this

spent

happy

"days together

by the United. States, does not

urged

voting

ell and I

:-f Har¬

that,

Averell Harriman and
for friendship between
Russian people and oiir

In June

several

riman, until
recently Am¬

Russia,

tions

*■

qf 1944 Aver¬

Politics, and Though Not Minimizing the Differences'; That
Have. Arisen With Russia; Contends That Program of Society for
Russian Relief'Furnishes Visible Proof of Dur Sincerity to Walk

$47,795; the three settlement and
community houses of Orange Val¬

before

speak

own.

With I

lund-raising"ef-'

It, and Wantr No

happy to be here tonight

the great

Retiring Ambassador to Russia-Says We Should Not Mix Charity -

Oranges and Maplewood, $110,000;
the Girl Scouts of the Oranges and

Alexander;, strongly

Harriman Urges Continuation
Slllftflf Russian Relief

not been exhausted.

to ;honor

the Oranges

Sir

Recrudescence of Imperialism.

(•

——:————n.";,T

voting; at least as long as peace¬
ful means for its settlement have
;

Aggressive 'Inten-k

(

Iran

v j

in Peace With Our Comrades in War.
■
fort, and the amounts of their;
respective needs, are the Young
Speaking at a dinner given in his honor by, the American Society
Men's Christian Association of the for Russian Relief nt the Hotel Commodore, New York
City, on
Oranges, $245,000; the Young Wo¬
March 19, W.^
men's Christian Association of the
bourse is so largely supported
Averell

whether the
Soviet

agencies which will be ben-;

The

mine-Postwar Peace, and Points to Role bf HNO as a Means of Determining Russia's
tiens.
HoIds Russia Can't Ride Roughshod Over Eastera Europe and Get Away Wifh

< *

eficiaries of the

the

Council
A. Wilfred May

•

that

Secretary of Commerce

Asserting That Russia Still Fears Capitalist Encirclement, Secretary Wallace Urges That We Beat No
Tom-Toms Against Her, but Follow Her Example hy Demonstrating That Our Political; and ^Economic
System Can Succeed in a Race With Communism.
Says U. S., Through Leadership, Can Bring a Gen-:-

YORK CITY,

curity Council

By HON. HENRY A. WALLACE*

Whitehall R-7830

BelL Teletype- NY .1-2763

.-..

i'Volume':1635i 'NOTBber 4474 .,.-,.:

"THE COMMERCIAL & FINANCIAL CHRONICLE

ship is a political status.
It sim¬
ply 'defines the relationship be¬

Substitute for Loan to Britain
v

;Xv

By BMANUEL OELLER*
'

"AH

says:

alized

born

persons

the -United

citizens of

the

natur¬

United

loan to Britain - for
the

^ whole

British mandates.
As

of . the

■1

pire,s' exclud¬
ing only Cani da and New¬
foundland, and
including such

sovereig

countries

Ireland, Iraq,
Egypt, the Su-

| dan,

Iceland,
and now probably Siam, as
well,
as
the

Emanuel Celler

*-mandates

of
Palestine, British
Cameroons, Tanganyika, Transjordan, and other areas of the ster-

;

alternative^ our assistance

Britain

could

determined.

Reference

The. Nazi was a

citizen.

He Jtiad

the

ened

destruction

short,

the

moral

on a Corporation's Repurchase of Pre|Stock; and (4) Provide Judicial Protection for Preferred >
Stockholders in Corporate Recapitalization.
Holds These Provi- '

sions Follow Pattern of Federal Laws and Will

Senator Frederic
■'

•

General /

«*

him

Serious

Life Is the Division of Society Into,

Evil in American

Classes and Struggle of Minorities

Church

for Supreme Power, and Urges j
i

Instill Voluntary Self-Motivated Effort and Self Discipline

i
One .hundred and • twenty-five years ago at Plymouth, Mass.,
Daniel Webster uttered • these challenging words: "Whatever

good
Christians/

motivated

makes them

and

good citizens."

providence of Almighty

In this terse

individual is a better citizen ber

men

distinction.
not

sary
man

the

morality. *

Cltiteh^

An address by. Mr. Bricker ^at
the Madison Avenue Presbyterian

Christian

it is

God/that

Church,

religion to be
a good citizen.
But

belief in the divine

with ethics

neces¬

n.cc p d

ihspire and motivate mankind,
i
; Jtis. at |his point that Christiant
ity becomes an ingredient of good
citizenship.. The.' religious doc¬
.

tian

necessary

New

York

13, 1946.'fr/^^->

March

City,

zation

1757194

3)
amending Sec¬
tion .11 of the

§i

with

John

the

qualities of

The

good'

faith*

they are the
who

children of a God

father, of

all.

inseparable

person

welfare of

all

empha¬

from

and

pre¬

conditions

under which preferred stock
may

issued;

II.

amending Section 56 of the Stock

Corporation Law toy adding
no

the vote of

a pro-*

director elected by

founded

teaches the lesson of mutual aid
and

the

Supreme

1.1761-Pt. 1947)
Section to be known

a new

62-a

General

the

Corporation Law giving the Sur
preme Court jurisdiction; to
re¬
quire recapitalization when pre¬
for

stock" has

been

default

period of not less than five
years or for a period of not less
than three years when the corpor¬
a

ate structure is

/preferred shareholders

(Continued

unduly
on

or unnec-

J518)

page

pleased to

are

that

.announce

MR. JOSEPH P. MINETREE
:

■■■

•'

•

as&ociated with

i$ how

Manager

us as

af the Bond Department in our
'

/X/x;X;

X X

//.New Orleans Office

■■__"/ ;:;'X.X J/X//

X.X'X;XX:/XX;' X /X 'X':.X/;: XX/

X'/ :
-

j^TElNER, pOUSE & COMPANY
Members New

York

Stock

Exchange and other leading Exchanges
■v

Maritime

•

Building, New Orleans 12, La.

Telephone CAnal 6-3381
New York

Birmingham
Alabama

Direct

Private

Wires

1536) j'

pn page

PACIFIC COAST

stockholders

ac¬

principles;,, if it

National Railways

Independent!,

will shortly

•

record

mail to all

iJ,y

«V:

-Committee

theirs .proxies

'•

'^5

4- >v

\ fX

HAWAIIAN SECURITIES
•'>

X':;-.:; Wi
«>.

p
<

HONOLULU STOCK EXCHANGE

with

A/•' j* * •V>r

request

r.<-

repre-f"

toVrec«i[ye:;the

BOUGHT—SOLD—QUOTED
:■;?>■:?!&•■ orii..

■

■■

*. ••

...

ij"

;•

-'j',

New York Hanseatic

W-

Exchan&e

New York *41

■

"• v/;
■

Harold W. Banser

HONOLULU

'X'.

Counsel

30 Pine St., New York 5, N.Y. x

Tel.Blgby 4-2040

pleased to

announce

that

JAMES I. BRENNAN

Corporation

•

Public

Established 1920

-Aj/ •. ,.y'(.r..«!•.*

•

HAnover 2-6286,

are

(formerly with Troster, Currie A

Guggenheimer & Untermyer

''■?/■■■ y.
%

Georgp Y. Hart, Secretary

Pulis, Howling & Co.
25 iBroad St.^

?' 4-.' A

Morton Jenks
*

Curb

•

•/;j,

;»

...

York

? i,:y

••

.Thornton C. McCune \

p;-.

'New

:...

to. Inc.

of R. Hoe &
•"

-is'!■::?&..-v....
.v

;*v

Stockholders -l-

/Committee
"k, fi -*,•>/

"f£$ r*1 •.«& \ ,4; -V- / V

•

7-4300

LOS ANGELES

the' iCommittee's i secretary.;;

STREET, NEW YORK

Telephone BArclay

•v-;

"•'

Independent

'■

SAN FRANCISCO STOCK EXCHANGE
LOS ANGELES STOCK EXCHANGE

ii;icopies,ro£;;same by-^omp»wiucating

Wagner Baking

£v',

/s 1

*>v

Dean Witter & Co.

SAN .FRANCISCO

Circular

-4 \

NEW YORK STOCK EXCHANGE

14 WALL
;

Private Wires

MEMBERS

All Issues

•.for."'the X

their

or-

4 sentatives who fail

Corporation

Direct

^^4 f.

annual. meeting.

Stockholders '

detailed

CommitteeV ■; formation,

of Mexico

inviting«. stockholders ^ to -send 'the i

forthcoming

Members

affect

voluntary cooperation among

(Coplihued

CO., Inc.

\tn4orsigned

Co. Inc.

the

/upon sound and

cented moral

}XX:/^Xx'X =;>v/:X:XX/X■ XXXXX:X''X:"/;

Section

ferred

An Act (S. I. 1758-Pt. 1944)

vision that

review by
■

adding

restricts

designed

An Act <S.

ation Law and

the

And"Tt

persons,

■

v'lrtter^xplaming.theVreasonsTori

may bd, 'if" it

•

ject to
Court;

which

Jackson

static.

Stockholders Committee of R. Hoe

Regardless of what, one's partic¬

>V *

plan

dividends in default shall be sub¬

AND

R. HOE &

'W. Bricker

ular. religious
is

the General

Stock Corpor¬

brew prophets as/well as from the
teachings of Christ; But, .though
men may
differ as to religious
faith/none will deny the ethicS
of Christianity cas a way of "life. !
This way of life is dyhohtab/ho{;

■

man¬

citizenship.

-f

A,n Act
I.

Pt.

of, preferred

1946) introducing a new subdivi¬
(c) in present Section 61 of
Corporation Law, pro¬
viding that a corporate recapitali¬

(S.

Percival

officers

its

sion

: X

kind

tion

are

follows:

provision imposing conditions
the repurchase by the corpora¬

trines of the western .world stem

It is found upon four car/
dinaj principles. Christianity holds
that ,all men are equal "because

Summers)

our

Utility/ Trading Department
v.

J. F. Reillv & Co
Members

1 J'Phone: "BArclay 7-5660

X;.,."Teletype:

associated with

-A

NEW YORK 5, NEW YORK:

now

120 BROADWAY
.

NY 1-584XX

stock after it shall be in default;
IV.
An
Act
(S. I.
1760-Pt.

These bills

STOCKHOLDERS OF

ethics

imbue

X;..:

Act

true

Chris¬

ferred stock of

that the prac¬
tice

Cor¬

Corporations.

front noble sources—from the He*

sizes the dignity and worth of the
of citizen/ individual, human personality, it
sbip has nothing "whatever to dp insists that the welfare of one

that

not derived froru
political status.
It flows from the
moral and! spiritual;forces Which

The legalistic concept

oked

means

of his profession land prac^tice bf that faith. <
'
•
1
•
;

often

,o v e r

by = ai spiritual"

cause

important

:A"v

The quality

interest adverse

X'
(S.
I.
1756-Pt.
1942) amending Section 69 of the
Stock Corporation Law by adding
III.

lies

statement

good citizen.

goodness -is

Pmciples, That Individual Is [a Better Citizen. Denounces the
Increasing Emphasis Upon Big Government and Centralizatiott: of
Governmental Authority^ as NW.elI as the Decline of the Amencan
Genius for Voluntary Action in Achieving Social Progress/and .the
Tendency to Solve All Problems by Passing Laws. ■ Says} Most 1

•

now

York

holders of pre¬

New

of
the
State,
designed to
protect the

scribes

Prominent Republican leader, Asserting That Regardless of One's
Particular Religion, if It Is Eouiided on Bound apd Accepted Moral

there

and

of the

preferred stockholders;

and

poration Laws

tai authority may make a man a
ioyal subject. : It ^ does hot ihake

shall have

the

Stock

Faithful allegiance to government
-

bills

six

amending

By john w. bricker*
.

introduced

Corporations

Legisla-^

ture

Christianity and Citizenship
Former Governor of Ohio

X /

Hammer has

State

qualities pf citizenship are/not de*
irived from^the' relationship of a
mah /.to
his political sovereign,

rv-^Jv

pending before the Committee

Be of Advantage

/Both to Investors and Corporations.

ethical

■

(3) Impose Conditions

(;

Corporation Director Elected by

ferred

t}ireatA
.

Preferred Stockholders From Having Interests Adverse to Them;

civilizai

tion.
In

to Rights of Preferred Stockholders.
These AmendWould (1) Restrict Conditions Under Which Preferred Stock

May Be Issued;. (2) Prevent

;

,:::.' ''

barbarism which for a time

tives, March 13, 1946.
(Continued on page 1531)

ments

-Indeed, 'the; political status of
citizenship may embrace political
immorality or moral decadence.

extended

in sworn allegiance with blind fanat-8
goods and services, to be paid for icism to the political ideology of
national socialism.
But his citi¬
in pounds sterling as
^deliveredj
the pounds sterling so produced to zenship meant the destruction of
It meant the perversion
be placed to /the credit of /the Culture,
United States
It meant the enslave-^
Treasury in ithe of; youth.
United Kingdom. Trade should be? ment of human beings.
It meant
thrown* wide Open. .The British the dphial of God.
Likewise, the
should be allowed to buy, anything Jap;was ,a citizen. He had sworn
and
everything .they nee&/.and allegiance, also with blind fanati¬
Want for their own island econ-f cism, to his emperor-god and to the
pagan, doctrines of ancestor wor/
omy.
■
/
Ship/ But his citizepship/ like: its
♦Statement of Congressman Celj counterpart in Hitler's Germany/
ler in the House of RepresentaA represented a wave of 'renascent

'British Em-

dependence on
countries ana
extending the duration of the

Proposed Amendments Introduced in the
Legislature to Amend the Stock Corporation Law With

New York

States

and of the State in which they re-i

Britain of sovereign

Mr. Jackson Reviews the

States, and

side.'.'v

sition of increasing

By granting

;
*

Protection

By PERCIVAL E. JACKSON

subject to the jurisdiction thereof,
are

Proposals for

Preferred

It"

Implicit within this defini-?
to U. S. or for Direct American Investments Abroad.
II
tioii are all of the rights and priv-j
Without extraordinary-administrative pressure, I doubt whether ileges that -men arid women enjoy
the proposed loan
because of their political status!
agreement will be approved by Congress.
«>But there is nothing which defines
Perhaps
there may be
ling: area bloc pool, we place our-j their/ -responsibilites by which
X* a way' out of
selves in the most ambiguous po¬ alone the quality of citizenship is
fh this dilemma.

New York

fourteenth amendment to the Con¬

stitution of the United States.

Substitute to .a Loan, That British Be Per¬
mitted to Buy American Goods and the Amount Retained in London
in Sterling Deposits to Credit of U. S.,Treasury Which Would Pay
Exporters in Equivalent Dollars. Holds Plan Could Be Extended
to All Sterling Bloc: Nations ^d, Funds TJsed for Future Imports

or sov¬

ereign to which he has sworn alle¬
giance. Recall for a moment the

Congressman from New York"'1

Rep. Celler Proposes

tween a man and the state

1499

New

York

Exchange Place

Security

TO BOSTON

•••/; f

New York 5, N. Y.

.!,//•

HAnover 2-4785

DIRECT WIRES

Inc. X/ifX/X

Dealers Association

•.

CHICAGO

•

LOS ANGELES

THE COMMERCIAL & FINANCIAL CHRONICLE

1500

Joins J. P. Arms,

MINNEAPOLIS, MINN.—Clar¬
Phillips has become associ¬
P. Arms, Inc., Rand

ence

ated with J.

"Tower.

Co. •/'

■

Rofbseliiid

;

2^;g^-:BAI^MORESgiSS

bers "New York

Co.,

Stock

120

mem¬

Exchange,

announces that Lt. Col. Henry L.
Heming .has been released from
active duty with the U.S.M.C.R.

partner in the firm.

; v-

ber of the East and

Kenneth Browne With

Drug

'v;-. Baltimore

STEIN BROS. & BOYCE
& Baltimore

Stock

Exchange* and other leading exchanges
S. CAT .VERT ST., BALTIMORE 2

)
New

matters

Bell Teletype BA 393
York. Telephone Rector 3-3327
,

BOSTON

Colorado Central Power (New) Common

;

which

would be amortized over a period
of

tion reserve last October amount¬

ed to 36% of

nection with write-offs,.

In
of

■>,

engaged in

American Air Filter

' .w-3»

industry

Descriptive Circular
Girdler Corporation

operated

American Turf Ass'n

Merchants Distilling Co.

Alfred

Louisville Gas Pref.

MILK

;

BOSTON 9, MASS.

JHANcock 8200
N. Y.

1st

Teletype BS 424

Telephone CAnal 6-8100

Floor,.

Incorporated

influential

•

Kentucky) HomeLifeBldg.
Bell Tele. LS186

committee of

Gramercy Park section of the city,

Eastern

New* England Lime Common

Old

RR.

Wellman

Common

Colony RR.

Submarine

member of the Gra¬

Park Association, and holds

Memos

the

Corporation

At the

Request

75 Federal Street, Boston 10 i

Private New York Telephone
REctor >5035

the

Philadelphia and
Exchanges* ?

Sachem

(Chief)

Order of Red Men

Past Supreme Knight

world-wide Ancient Esse-

over

New York

law would

tax

new

amount,

approximate

$10,500 or about 24c a share. Add¬

this

ing

would
an

the

produce

unusually high

earnings

stated
$2.02

basis the stock would be

selling at

KWH

3c in 1945 and the

were

customers With Frank Vroman & Co.

| for | residential

4.33c} the later is of

presumably

well

(Special to The Financial Chroniclx) » ^

which

MINNEAPOLIS, MINN. —Wal¬

course

above the national average,

about 17 times adjusted earnings.

company's average revenues

rate

explained

lace J, Estenson has become

the

carried

Central

Oct.

31,

which

1945

Rand

its

1926,

30,

the

past four

serving in the

included

plus

■

wW'11

■

IM :>•,.

On Kalman & Co. Staff

later

(Special to Thb financial

investigation

•,

stated at the appraised values

Sept.

For

Tower.

years he has been

$99,610 in intangibles^ Fixed assets
were

asso¬

ciated with Frank Vroman & Co.,

large proportion of rural business.
Colorado

which

proportion of residential business.
The

$46,-

were

566, so that total savings under the

ST.

chronicle)

PAUL, MINN.—Edward D.

original cost is being conducted,

Anderson,

nected with Kalman & Co., Inc^

sufficiently

completed to determine how much

LosAngelee
Pittsburgh, Pa. '
Hagerstown, Md.
N. Y. Telephone—WHitehall 3-7253
f

income taxes

Federal

16%, industrial 20%,

This

profits tax payments last
to $14,882 and

amounted

runs

revenues

total

offering price of 34, the

but has not yet been

35 years.

Street,Philadelphia 2

Private Wire System between

Excess

year

municipal and miscellaneous

14%.

changes.

Mr. Loyd has been a student in

China for

half the

commercial

New

nic Order.

Los Angeles Stock

1529 Walnut

BUCKLEY BROTHERS
Members New Yorki

park

Residential

constitute

and

contract which

1952.

intan¬

stock was-selling at slightly over
19 times earnings, to yield 4.7%.

Company of Colo¬

plant account at $1,966,091 as

Past

also

and

Company
&

private

only

the Improved

Engineering
on

personal key to Gramercy Park,

York City.

Signal

Dayton Haigney

rado under

per

He resides in the beautiful old

mercy

Foote Bros. Gear & Machine

' '

Providence RR.

Haven

Re¬

the

;

Boston Edison

New

a mem¬

publican Party.

elected

Republic County Com¬

where he is

Boston

November

mittee, County of New York, an

PHILADELPHIA
TRADING MARKETS

last

was

LOUISVILLE 2, KENTUCKY
Long Distance 238-9 ?

least

active

also

the

primaries he

BANKERS BOND £°!

STREET

(excluding

plant account
gibles).

from

electricity

output

Public Service

rev¬

necessary

The company purchases its en¬
tire

ber of the

automobile

Loyd

politics.

Winn & Lovett Grocery

Pont, Homsey Co.

and

owned

25 years ago.

Available

have

in the

manner

some

making a total of 14.2%.
This
figure appears to be somewhat on
the low side as compared with
other
companies.
Depreciation
amounted to 2.2% of the gross

that the applicant must have been

relation

to deduct
from the latter figure the cost of
purchased power. ) For the year
ended V Oct.
31,
depreciation
amounted to 7.3% of adjusted rev¬
enues;) and
maintenance
6.9%,

CO.

enues,

WATCH

considering the adequacy
for depreciation and

charges

maintenance

•

WALTHAM

tangible property ac¬

count, an Unusually high reserve,
which may prove useful in con¬

Edward Brockhaus Go.

The accrued deprecia¬

years).

Richard Bardes With

and Dean Witter & Co.
offered 43,750 shares of Colorado Central Power Company common
stock (par $10) at $34 a share.
This represented the entire common
stock, previously owned by a holding. company, Crescent/ Public
Service.
The company operates) three properties in the state of
Colorado, serving a population of about 40,000. Principal activities in
this area are irrigated farming,^
livestock and a variety of small sumably some part of the amount
On March 13th First Boston Corporation

China, is President,
prominent leaders
government, finance and in¬
manufacturing ; industries
(t h e
dustry, particularly in the Far
Kenneth C. Browne,
company does not serve any im¬
a
staff East and
especially in China, are
portant mining areas). The earn¬
member of the "Wall Street Jour¬ active
members.
~
I
nal" for 17 years, has become as¬
ings and dividend record have been
For more than 25 years Mr.
as follows, according to
sociated with Seligman, Lubetkin
the pro¬
Loyd headed the firm of Alfred
& Co., Inc., 41 Broad Street, New
spectus (earnings; are on a pro
E. Loyd & Co., dealers and brok¬
forma basis);
York City, dealers in unlisted se¬
ers
in over-the-counter securi-f
Wh: ^
Share
curities^ to do dealer contact work* ties
specializing, in bank, triist, ti¬
Year
Earnings Dividends
tle and insurance company stocks,
;
T9451
$1.78.
$1.60,
especially those of out-of-town or
1944 S-w-v
1.71
1.60 '
country banks.
/
' '
'
j
^1943
1.67 •
1.60 ;
He also has been: elected a
.1942
1.61
i:60, J
member of the Automobile Old
1941
1.72
1.37
(Special to The Financial Chronicle)
Timers, of which George Conrad
1940
1.73
*
1.37
CINCINNATI, OHIO.—Richard Diehl, the famous international
W. Bardes has become associated
*12 Months ended Oct. 31, 1945.
bridge engineer: and builder is
with Edward Brockhaus & Co.,
President, and which has among
Capitalization consists only of
Union Trust Building. He has re¬
its members outstanding veteran $662,000 1st 3%s due 1959 and
cently been in the armed forces. pioneers of the
great automobile 43,750 shares of common stock;
Prior thereto he was an officer of
industry and many of; th% present While a pro forma balance sheet
Bardes, Smith & Polito and was
rank and file thereof.
The mem¬ is not available, the common stock
with L. W. Hoefinghoff & Co,
equity appears to be about $630,bership is quite exclusive and the
000, or nearly half of the capital
LOUISVILLE
prime requisite for admission is structure, "

Seligman, Lubetkin

Noxzema Chemical
First National Bank of

Westv Associa¬
tion, of which Pearl S. Buck, the
noted
author and
authority on
and

Common.

!Membeni Nev fork

has Many Important Connections
Alfred E. Loyd, a popular, wellliked personality of the securities
industry, has been elected a mem¬

Davis Coal & Coke
Emerson

West Association

has resumed his activities

and

Terminal

Bayway

Partner | A Member of East and

Rothschild

with Bfoadway, New York City,

the past he was

J. W. Goldsbury &

Heming Resumes Alfred Loyd Elected i|

H. L.

Inc*

Chronicle)

(Special to Thb Financial

Thursday, March 21, 1946

SPARTANBURG

the

write-off may be required by
Colorado

Commission

(pre¬

Jr.,

has

Endicott Building.
has been

Air

become

con¬

Mr. Anderson

serving in the U. S. Navy

Corps.

Philadelphia, New York and Los Angeles

Southern

Oregon Portland Cement Co.
Common Class "A"
•

Capacity—-900,000 barrels annually.

•

Book value—-around $18.
Good
earnings
all

Southern Advance

•

war:

Company wWld benefit substantial¬
ly from tax reduction.
Oregon's n huge
highway
.

Market about

'5£v*.*

program

Common

Corp.

A. M. LAW & COMPANY
'

(Established

10 POST OFFICE

SQUARE
9, MASS.

BOENNING & CO.

Tel. HUB 1990

Teletype BS 69

1606 Walnut St.,

Philadelphia 3

Pennypacker 8200
Private
v,

Phone

COrtlandt

L. D. 51

Philadelphia Co.

Preferreds

Pittsburgh Railways

Warner Co.

MOINES

Phone 4-7159

IOWA

Bell Telei DM 184

Byllesby & Company

PHILADELPHIA OFFICE

aaftby

«"l

■■

■;-

;■■•hrV(V-VvV-v)

'■,

(■'

fci.

American Gas & Power 3-5s & 3.6s 1953

New JUtock When Issued

Central Public Utilities S'/zS 1952
'

if!

Lincoln Building 5V2S 1963

Portland Electric Power 6s 1950

INQUIRIES INVITED

MOHAWK VALLEY
INVESTING COMPANY
.

;•

;
t

INC.

Stock Exchange Bldg. Phila. 2

238 Genesee

Phone Rittenhouse 3717

Tel. 4-3195-6-7

-Tele. PH 73

j i

,■

III) Utlca & Mohawk ) ^
Cotton Mills, Inc. L],

common

BUILDING

QUOTED

Vinco Corp.

H. M.
DES

.j,.:'

"Common

Sterling Motor Truck,

Packing Co.

EQUITABLE

Oneida LtdL

common

Empire Steel Corp. com.

Preferreds

—

Rine, Webber, Jackson & Curtis

Teletype SPBG 17

UTICA. N. Y.

Iowa Power & Light Co.
United Light & Ryt.

SOLD

N. Y. C.

7*1202

Dealer Inquiries Invited

—

PH 30

Botany Worsted Mills pfd. & A

Common

BOUGHT

;

;»!:•

INCORPORATED

Rath

1892)

SPARTANBURG, S. C.

DES MOINES

WHEELOCK & CUMMINS

Public Service of Indiana

Common Stock

Circular available

BOSTON

Properties;

<■

Grinnell
"

LERNER & CO.
;

Federal Water & Gas

Common Stock

^■ready. to"*tarL/.))|£.^
'

AND

Bag & Paper Co.
,

Light

Common

through

I
•

Delaware Power &

Textile Securities

St., Utica 2, N. Y.
Tele. UT 16

Gilbert J. Postley & Co.
'

■

•'

•

. •.

29 BROADWAY, NEW
Direct

; .;

YORK 6, N. Y.

Wire to Chicago

'•

•

'v. ;; *'

'•' f-

)
-'.-v)•

Volume 163

Number 4474

Where is
;

THE COMMERCIAL & FINANCIAL CHRONICLE

Organized
Labor Going ?

By. DONALD R. RICHBERG*

"i>C

j"'-

* Kj

The

labor

prv.

i'/„

i Jj

has

movement

•

V'J,v

w ^

«•

„

national

coordinated

a n

%■:> '

^' ti

upon

labororganic
zations or sup--

port

gov¬

ernment

It
own

is with

Donald

Richberg

Labor

sexless

cre-

aticn representing not wage earn-

ers,
that

but the political oligarchies
control

labor

bosses

unions.
work

can

These

should

William Green is

really? be called the
Congery of Industrial Organiza¬

,,•

■

??!■

/$.„

group Jot brotherhoods and
craft unions with fairly consisr
a

tent, ^conservative
*

policies

and

Rich¬

An address made by Mr.

berg before the Rotary Club
vLuncheon,
Washington,
D.
C.,
Feb. 21, 1946; Mr. Richberg is ja
member of the law firm of

inal

I will not be

candidate
re

Under

Executive

the

(Continued

TRADING

Quotations and executions promptly handled

and

no
can

demonstrate
the

gratitude

feel.

going to
the

best

———

place

over our

YORK CURB

need, - where it

pf great

associated

of.

its

development,

seems

■

Mr. Kraybill was formerly with

Pyle and Mr. Reno

and, held by a realization of op¬
portunity and of duty as compel¬

SCHEHLEY DISTILLERS CORPORATION
NOTE—From time to time, in this space,
there will

under

government

Conclusions

administration

By MARK MERIT

evolved through
of the ages.
By

ever

processes

the

Conclusions

are

usually

in¬

page

products. The
of the latter, are
shown in the table below, compiled
increases in prices

Here

■

•

/•

•

Established

1520)

—

Cost of Living

you'll find
on

From

August

Index.. up 31% X
up 59%

/(separately)

Clothing.

(").....up .48%

Theatres
And

the egg

our

(")

46 %

Admission—Motion Picture

now t

(Nat'lAvg.)

43%

conclusion. Except for

additional taxes, we have not in'

new

creased

these commodities

our

price of America's larg¬
selling \*brar\d of

est, present-day,

extremely helpful and inter¬
esting. They give detailed,
easily understandable expla¬

whiskey, by as much as 1 %, since
July 1940,
i
.

Yes, the consumer does pay more

procedure and

bottle—but the extra he pays
chiefly from extra taxes.
Please remember that today's Fed¬
eral Excise Tax on whiskey is $9.00

per

terminology of spot and
futures
trading, and describe
the background of the mar¬

results

kets in both wool and
eggs

per.

with

To the

new

trader in wool and
eggs
of

100°

the

are

sold in 4/5

$1.61 Federal
plus 24
State Tax (national average), mak¬
ing a total of $1.85—-tax per 4/5
quart bottle. And another con¬

these booklets

consumer pays

Excise Tax, and extras,

acquiring authoritative informa¬
subject—while the experienced hedger

speculator will find them informative and valuable
as handbooks
coveting even the more involved phases
of wool and
egg trading.;
For

proof—and

quart bottles, instead of full quarts,

means

bottled at 86° proof, instead of

are

fixed charges, grading
trading in these staples,

contracts,

ftU8is BUILDtN a

100° proof gallon. And since

America's favorite blended whiskies

production figures and

forecasts, facts

clusion:
Not

a' copy

one

of this tax

cent

money

of the booklet which interests you, simply
write, asking for "WOOL" or "EGGS."
It will be sent
promptly without cost or obligation to you. Address Dept, UT"

the distiller, the wholesaler or
the retailer It goes to the Federal and
State Treasuries, to defray, the cost

'■}.

ATLANTA
.

go:

Food,.,>

EGG MARKET

nations of the

'J J ■U-,'- JJ.

;

1939 to November 1945—'•

of the wool market

.7" -4 J i'

1894

Price Increase

full, clear un¬
derstanding of the workings

Council

FRANCISCO

comparison, for in¬

stance, of the present-day price of
a bottle of our largest selKng brand

THE WOOL MARKET

and other essentials of
1S □ O

We'll make

If you* want a

leader¬

Robinson-Humphrey Company
i

CORP.

SCHENLEY DISTILLERS

ling, I believe, as ever caused any
person to dedicate his life to any¬
thing.
'
I have watched what my own

generation,

advertisement which

appear an

we hope will be of interest to
our fellow
Americans. This is number 118 of a series.

House Furnishings

of government,

previous¬

weaken its vitality.
learned,as much about our

i *'

/ ?

-v

goes to

♦blended whiskey 86 proof,
65% GRAIN NEUTRAL SPIRITS.

Merrill Lynch, Pierce, Fenner k Beane

Teletype AT 288

were

ly with Holsapple & Co.

...THE

LOCAL STOCKS

RHODES-HAVERTY BLDG.

corporate di¬

by the Bureau of Labor Statistics.

CORPORATE BONDS

JJS.• "v-

the

which

NOW-The

STATE AND MUNICIPAL BONDS

The

with

—with various other

tion

'*<

tain, Infantry, A.U.S., has become

F. S. Moseley & Co. and both Mr.

gipiiiiininiiliiBninniiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinflniiiirtinniiinnniiiinniifeiniiiniw^^

Direct Private Wire

SAN

;

depart¬

Raymond W. Pyle, Cap¬

■:.<

SAN FRANCISCO STOCK EXCHANGE

municipal

also joined the municipal
ment and

•

EXCHANGE

v.-

its

Constitution back through its
history to its source, and then
have followed it back
through the

John W. Reno, Lieu¬

our

the

firm

vision.

this" session

can,

afford

^ '/

the

department,

of both parties, has been
doing to
the greatest system of democratic

NEW YORK STOCKS

NtW YORK STOCK EXCHANGS

.,w:

Kraybill, Captain, Coast Artil¬

with

though, to de¬
apprecition. I am
shifting my activity at the end of

Kaiser 5. Co.
STREET

interest;

can ex¬

Hatton W. Sumners

on the New York Curb Exchange
also traded onthe San Francisco Stock Exchange between
the the hours of 10 a. m. and 5:30 p. m* (E. S. T.) "

YORK

words

service

monstrate

New

York City, announces that William

lery, A.U.S., has become associated

system of government as a person
of my capacity could
learn, per¬
fectly j circumstanced to study it,
stimulated by an intense

a m

press

A list of these stocks is available upon
request

PINE

Pome-

of government, to watch
its machinery at work. I have run

I have

peo¬

ple
I
grateful.

Twenty-nine stocks traded

NEW

great

—

those

time to be the

booklets

l-.'i

system

centuries

.representative
in one job of

conspiracies against the gen¬

ship

Davies,

NEW

observing what policies of govern¬
ment tend to give it strength and

four
is a long

years

market

ore

for

election.

Thirty

well-mean¬

eral welfare.

ardson, Washington, D. C.

FRANCISCO

who turn labor unions into crim¬

Richberg, Beebe, Busick and Rich¬

SAN

announce*>-

though not retiring
from
their
service,

ing drifter. As such, his rudder¬
less, oarless raft stays afloat in
troubled seas, but never gets any¬
where! Dictators to right of him,
racketeers to left of him, he vol¬
leys and thunders against the ene¬
mies of labor, keeping his eyes
constantly averted from the chief
enemies of labor, his associates

The railroad labor organizations
are

Street,

■

^1"'"' :;VJ?!)'

Wall

The Congress, of Industrial Or¬
ganizations is not a congress, but
reflect the faults and weaknesses
a loose collection of labor organi¬
zations with as much harmony and of the labor movement as a whole.
consistent: policy ? as
would be So it seems necessary to analyze
found in a poorly ruh menagerie. them candidly but without malice.

tions!

'«

Hutton

;

tenant, Field Artillery; A.U.Shas

together

only when they have a common
interest in maintaining organizar
tions of private force and a com¬
mon fear of being restrained by
public force.

Inc.,

ignoring principles and the lessons teresting than statistics. But, still,
there's the normal question, "On
experience and training should fit of
history, and
accepting
the
the Federation will
reflect the me to be more useful than I can
what do you base your conclu¬
theories of men and political ex¬
views of John L. Lewis—or else! be as a Member of
Congress. The pedience for our guidance, we sions?" When this question is in- •
The Eyebrow King will either run private
citizenship seems to be have made vassals of our States voked, it is sometimes necessary
or ruin any organization to which
awakening to their danger, and and dependents of our people. By to present the statistics and the
he belongs. 1
Vj*' ; their duty and power. While my concentration of governmental sources from which they have been
own
people have taken care of power and drafts upon the Fed¬
Labor Leadership
^obtained.,
the politics of our relationship, I eral Treasury, we have now a fi¬
The above is inspired by an oc¬
The leadership of these organi¬ have had opportunity to
study our nancially "busted," great piled-up
zations is highly important. To
casional inquiry as to the reason |
mass
of governmental confusion
some extent, the leaders reflect
*A
statement issued by Con¬ beyond
human
comprehension;, why the consumer pays "such a
the good and bad ideas and the
gressman; Summers (D-?iexas) oh impossible of demo^ijatic control, high price" today for a bottle of
prejudices of the rank and file.
March 10|. 1946
; (Continued on page 1519)
whiskey.
v ^
^
Their individual faults likewise

Federa-

can

tion

feeling of deep obligation and of gratitude to my
people and to those of the country at large, and with regret, that

■

<•

leadership.

more intelligent and
leadership, more sensible,
than one would assume from ready¬
zations.
To under¬ ing their bitterly partisan weekly
stand why this newspaper which consistently fo¬
is so, a brief ments instead of allaying indus-f
analysis of the trial discontent.
o
utstanding >. United Mine Workers has always
flabby groups been a law unto itself—the, chief
may be help¬
lawmaker being John L. Lewis.
ful.,,,
i
j Now that they have rejoined the
The Ameri¬ A. F. of L., it is inevitable that

Comprehension/1

their

organi¬

Beyond Human

jfa-f
voritism t o ship is far
labor

Veteran Democratic Congressman, in Announcing His
Retirement,
Scores Concentration, of: Power, in. Executive
Agencies and Organ¬
ized Minorities.
Asserts "We Have Now a
Financially. Busted,
Great Piled-Up Mass of Governmental Confusion

and accept responsibilities to em¬
ployers and to the public. They
carry on a constant struggle for
unity against the disruptive poli¬
cies ; of certain: able but unduly
selfish, leaders. Their member¬

e¬

Schoellkopf,

roy,

Congressman from Texas
i'l'v 4*V'r;

to the interests of their members,

govern*

straints

By HATfON W. SUMNERS*

Indeed, organized labor seems incapable of uniting on any national
^
: policy except^
opposition to they are in the main responsive
m

Adds Three to Staff ffl

Concentration

Richberg Analyzes Outstanding Labor Organizations, Charac¬
terizing the AFL-as a Sexless Creation Representing Political Oli- I
garachies; the CIO as a Loose Collection of Labor Organizations
Without Consistent Policy; and the Railroad Brotherhoods as Re¬
sponsive to the Interests of Their Members; Their Employers and
the Public.„Critic!zes Union Leadership and Accuses John L. Lewis
j
of Loving Power More Than Wealth, and Aspiring to Dictatorship. ,>■{
Sees Labor Organizations Entering Politics and Rewarding Friends -1
and Punishing: Enemies, and Points Out the Heavy Price Paid
by Striking Workers and the Inefficacy of Horizontal Wage In¬
creases for All Wage' Earners.
Y"

Schoellkopf, Huffon

Dangers oi Governmental

Mr.

1501

Brokers in Commodities and Securities

.Underwriters and Distributors of

70 PINE STREET

GEORGIA

Investment. Securities
NEW YORK 5,

Uptown Office: 730 fifth avenue

Long Distance 108

FREE—Send
OF

N. Y.

Dept.
N.

18A,

Y„

postcard to MARK MERIr

various

350

and

containing

ijiiiiiiiiipuiiiwuiiiniiw

SCHENLEY

you

DISTILLERS

Fifth
will

reprints

subje.cts in this

Avenue,
receive
earlier
series.

CORP

N.
a

booklt

articles

THE COMMERCIAL & FINANCIAL CHRONICLE

1502

—Ge.yer
1

•••

Recommendations and Literature

General Box
Kropp Forge
Enamel

J|||||

send interested parties the

V to

following literature:

\'vv.-i •

Bost, Inc.—detailed circular on

Sports Products Inc.

Sears, Roebuck & Co.; Emporium

Air Transport Industry Outlook

Co.; Federated Depart-)
Stores, Inc.; and Bullock's*

Schmidt & Co.

—Study of Prospects—Delafield &
Delafield, 14 Wall Street, New

Cap we II

Established 1922

C. L.

York

Inc.—Dean Witter & Co., 45

5, N. Y.

La Salle Street

120 South

6960

showing
earnings,
price
range,
dividends < and yields of
115
Canadian
issues -— Charles
view.

Egg Market and Wool

•

;

Wholesale Distributors
—

formation

Pacific Coast

UNDERWRITERS

CG 99

State 6502

Inc.;

Stocks—-

list

for

C21—

Interest-Bearing

Govt.

for the Obligations—A descriptive chart
Pacific: Coast area in the current —C. F. Childs & Co., 1 Wall Street,
number of "Investment Guide," New York 5, N. Y.
—Discussion of prospects

650$. Spring St.
MichfcanttSl

contains

also

which

data

Consolidated Gas
Utilities. Corp,,

The-Muter-Co.
,

Circular

Request

HICKS 6- PRICE
Members Principal Stock Exchange*
Chicago Board of Trade

SALLE ST., CHICAGO 4

231 SO* LA
.

972 v
Office '• V^l^Wall St.

Randolph 5686—CG

;

New. York

Co.—Special analytical report—
—Walston, Hoffman* <& "Goodwin,
265 Montgomery Street, San Fran¬
cisco, Calif. I'
r
vy, • • * Geared to the News—brochure
Also available are reports on
of comment and review contain¬
Anaconda
Copper
Mining Co.;
ing brief analyses of Philip Carey Baldwin Locomotive Works; Cali¬
Manufacturing Co.; Sargent & Co.;
fornia Packing Co.; Central Paper
The
Upson Company; Lawrence
Co., Inc.; Chrysler Corporation;
Portland Cement Co.; The Parker
Durez Plastics & Chemicals, Inc.;
Appliance Co.; Pettibone Mulliken
Federal Motor Truck Co.; Federal
Corp.;
Armstrong Rubber
Co.;
Water & Gas Corp*; General Mo¬
Ohio Leather Co.; American Fur¬
tors Corp*; Giddings & Lewis Maniture Co.; Punta Alegre Sugar
Chine Tool; Hooker Electrochem¬
Corp.;
Ilaytian
Corporation
of
ical
Co.;
LaPlant-Choate
Co.;
America; Latrobe Electric Steel
Lane-Wei Is; National City Bank
Co.;
Ray-O-Vac Company; Fort
of New "York; J. C. Penney Co.;
Pitt
Bridge
Works
and Welch
Puget Power & Light Co.;f ServeI,
Grape Juice Co.—Strauss Bros., 32
Inc.; Socony-Vacuum Gil Co., Inc.;
Broadway, New York 4, N. Y.
'T
A. G. Spalding & Bros., Inc.;' Sttt"

on
*

Pfd.

Inc.,

Industries,

Snap-On Tools Corp., Com.
-yfry.-;*:, ,-i
v*
:
*
Prospectus Available-qn Request,

Established 1916

Exchanges
Trade y

lO So. La Salle St.,

Chicago 3

Members Principal Stock

Teletype CG 405

Tel. Franklin 8622

Indianapolis, Ind.
• - •
Rockford,
^A.'-Vy I
Cleveland, Ohio

<?o.;. Westing/
^ 1

.American Forging and

Circular—De

Young,

Tornga,

III.

Socket-

&
National

Rapids

Grand

Rapids 2

Building, Grand

Mich.-

companies,
based on bid prices at month-end
fpr the 4 years encfing Dec; 31; 1945
-—also Composite chart index of
fire
companies compared
with
casualty companies — Mackubin,
Legg & Co-, 22«Light Street, Bal¬
timore 3, Md.
«

and

Pent-up

casualty

•

American^ Phenolic Corporation
—Analysis-—,!. F. Reilly & Co.; In¬
corporated, 40 Exchange Place.
New York 5, N/Y.

.Consolidated Gas Utilities and

Co. v

■

v ;

""''if

.i.

'■

'• {'

—•' '"t

The Gabriel

Puget Sound Power

Oxford

Preferred" Stock

General Tin; Upson Co.;
New Jersey Worsted Mills; Mo¬

interesting

hawk Rubber.

New York 6,

pany;

—Special analysis in current avia¬
tion "bulletin—John H. Lewis; &
Co., 14 Wall Street, New
N. Y.
$ '-}J

Recent

report — Mercier, McDdwell. &
Dolphyn, Buhl Building, Detroi

26, Mich.
Also

-available

report

Teletype CG 955

Members Chicago Stock Exchange

under

oi>

which is expected to

Shcllcr Manufacturing Corp.7.

1421

result in re¬

vision of Section 77 of the Bank¬

Hentz & Co., 6D
New York 4, N. Y.

ruptcy Act—H.

vGalvin Co.—Descriptive Circu¬

Beaver Street,

lar—Seligman, Lubetkin & Co,
41 Broad Street, New York 4, N.'Y,

Afso detailed circulars on Upson
Schenley Distillers Corporation
Tennessee Products; Well—Brochure of articles they fiave
Engineering Co.; Kendall Co. been/running in- the Ghronicle^write to Mark Merit, in care of

man

Corporation — Study

Haskeiite
of

firm which;rwas a; pioneer

Schenley

■

'•*

—

Seaboard

Airline
Memo on
developments—Vilas Sc
Hickey, 49 Wall Street, New York

Memo-

f CndumT^rcrttenden ■,;^.;;^Cb.v"'-269
South La Salle Street, Chicago 4

5, N.
*

study

Y.:;;tr

Soundview Pulp

Co*—Analysis

—Shuman, Agnew & Co., 30D
Montgomery Street, San Francisco*

Ro!

available lis

Corporation*
New York 1,

current

j.1

Detrola

Avenue,

Fifth

N*Y.

ltsfises*SAmott;Baker ^^&:Co., 15p
Broadway, New York 7, N. Y.
7
International

Distillers

**0

and

the development Of plywood

V Calif.7

New York 5, N, Y»

Nassau Street,

manufacturer of synthetic
Treat & CO.; 40

Thiokol—Descriptive booklet on

Aircraft

\<f*,

Corp.—

.]''''

ifyf

♦«r-

N.Y.

■

•>.{.

;

'
i

,i.i

ii.

!■

Cb.-^irculaf---

Street, New York 4,
;•
//
-.7

circular—du

tive

South La Salle
111. •

■

"•

\H\

Pont,

Homsey

Co., 31 Milk Street, Boston

—We Maintain Active Markets

Chicago

Stock

Exchange

Chicago

Board

Trade

Midland Realization
Write

For

M-3-—

CHICAGO
Telephone
Direct Private
Bell

„

4068

New

CG 637

'
oV: ,'4

Common Stock

***■

'w-l'

'•V'*\/Yy7 '

Request

CBUTTtnjJtnJi Co.

|H. M. Byllesby and Company
/•tv' !l

,:
.

'<*'v '

NORTHERN STATES POWER CO. 6 & 7 Pfds.

SALLE ST.

Wire to

INTERNATIONAL DETROLA

Memo

ILLINOIS

Randolph

System

DEEP BOCK OIL CORP. Common; '
>V

study of Midland Utilities

208 SOUTH LA

Bought—Sold—Quoted
;

CHICAGO SO. SHORE & SO. BEND BB. Com.

•

Midland Utilities

In—'

Members

•:

y'■;, ■;

135 So. La

Incorporated ' y Z-v %
•;
Street, Chicago 3 "

Salle

Telephone State 8711

" /'•'

York

New York

Philadelphia

" Teletype CG 273

.Pittsburgh

WtmLri Y)tu> IJorh,

''■?
'

Chicago an J <jCoi ^AnytltS Stocl £*Jianfti

Minneapolis

los angeles

lincoln. neb.
omaha, neb.

7 209 South La Salle Street
_

;

" *;

CHICAGO 4,

7 direct wires

to east and
ILLINOIS Wwest coast
z'zv-:zy::'j

Broaci

N. Y.
Co.—Descrip¬

Watch

Waltham

Fairman & Co., 208

Street, Chicago 4,

♦

Wagtier Baking

Midland
study-^
Write for circular M-3—Fred W.

Teletype CG 864

v-*

lYall Street, New-

Pulis, Dowling & C6., 25
;

rubber,

plasticizers and chemicals^—Anios

•

SINCE 1908

Fred.W.FairmanCo.

■

Soya Corporation—late memo¬
randum—Peter Morgan; & Co., $1

.Midland Utilities and
Realization — detailed

209 SO. LA SALLE ST.; CHICAGO 4, ILL.
Dearborn

T«»l»ohone

Francisco—Study
of legislation
consideration by Senate

St. Louis-San

INCORPORATED
'-v

York 5,

of situation in light

Corporation

Aviation

7 Republic

& Machine;

—

ysis of National Radiator Co;

York 5,

SILLS, MINTON & COMPANY
-

New York 6, N. Y.

Alsofor dealers only is an anal-;

Buckley Bros;, 1529 Walnut Street:
Philadelphia 2, Pa. Also available
are memoranda on Wellman En¬
gineering and Foote Bros. Gear

Inc.

N, Y,

C* E. Unterberg & Co., 61 Broad¬

way;

■/-

Troster, 74 Trinity Place,

Cp;—Analysis, for dealers only^-

Corp.—Memorandum-

Electromaster

ppjssibilities

Public National Bank & Trust

Eastern

■-7

;

Rose

Butto'n-^Analysis—MoreCo., Penobscot Building,
Mich.—Also available
study of L. A. Darling.

and

Panama Coca Cola—Circular

Detroit 26,
is

Company

Lawrence Portland Cement Com¬

C. II.
land

Rockwood

IVIeniorandum — F. H. Koller &
Co., Inc..
Ill Broadway, New
York 6, N. Y.

Dearborn 1501

Bros.,

Shoe;

McDonneil

COMSTOCK & CO.
CHICAGO

Company—Cur¬

Paper

bulletin—Strauss

rent

Co>—

Study of outlook and speculative
possibilities for appreciation for
this company—Ward & Co., 120
Broadway, New York 5, N. Y. Also
available are late memoranda on;
Great
American
Industries;
Alabama
Mills,
Inc.;
Douglas

(Par Value $10 per Share)

So. La Salle St.

Iron

Broad way* New York 4, N.Y.'
;
v
Also available is ^ memorandum

& Light Co.

231

Malleable

Dayton-

5, .N.

Company

Cumulative Convertible

,/'irV

Lipe-Rollway Corporation—Cir«r
cular—Herrick, Waddell & Co.,
Inc.. 55 Liberty Street, New York

Kropp Forge Co.
Miller Manufacturing Co.

Office

Post

■

«>.

Co.,

orandum on The Muter Co.

York Corrugating.
,,i' .i»

Prospectus Available

Square, Boston 9 Mass;

Company—Study o*
able is a recent circular on E, AG- common stock as.a sound specu¬
Brooke Iron Co.; -Michigan Steel
lative
purchase — First
Colon?
Casting Company
and
National Corporation; 76 Pine StrCeit,- New
York 5, N. Y.
Terminals Corp.

>
,

Leriier

Street, Chicago 4, 111. • .
*
•«
Also available is a recent mem¬

Also

Burgess Battery

Oregon Portland Cement-^BuI-*
letin on recent developinents *r-

Corp.*—Circulars-^Salle

Chicago

The

—Adams & Co., 231 South La Salle
Strbet, Chicago 4, til. Also avail¬

Sales—Study of department store
situation, including a discussion of

Hydraulic Press Mfg. Co,'

Company-

Descriptive
circular*-^ Da y t otx
Haigney & Co., 75 Federal Street;
Boston 10, Mass.
;v;.'■;

American Service Co.—Circular

Retail

and

Demand

New England Lime

—

Hicks & Price, 231 South La

Larson

South

bulletin

Revised

Corporation, 120 Broad-

New York-5,- N.'Y.'

Co.;

Index—Charts; of'57., fire, compa¬

■>

Chicago Board of

Equipment;

•—-—

I Mac ku bi n, Legg Insurance Stock

Paul HLDavte & Co.
'i:

Soundview i Pulp
house Electric Co.

Bankers Bend Cbv Inc., Kentucky
Home- Life Building^ Louisvillb 2,

nies

comment

Bank

N Qtes'%—Brief

number of Kentucky indusr
and
banking7 situations—«■

Ky.

Forge Co., Common

♦Camden

debaker Corp.; Victor
I .oca I

trial

Wells-Gardner•& Co., Com.

:!;WoodaII

•

Corp.

—

III.

Manufacturing

Allis-Chalmers

situations—First CalL

number of

RR.

Company, 300 Montgomery
Street, San Francisco, Calif;

The Chicago

Hanseatic

•

Doyle,- O'Connor- & Co*, Inc., 135
South La Salle Street, Chicago 3.

Co.;

Amott, Baker & Co., Inc., 150
Broadway, New Yprk 7, N. Y,

Pacific"

"Future Belongs-to the

Statler

fornia

National Railways of > Mexico-

Analytical information—New York

Astoria

Waldorf

Hotel

Ave.' Corp.—Ask

Street, New York 5, N. Y.

70 Pine

LOS ANGELES 14

Equ.ty

Hotel
NY; Savoy Plaza; and 870 Seventh

"Eggs" and ad¬
dress
Department
"T," Merrill
Lynch, Pierce, Fenner & Beane,

SECONDARY MARKET
DISTRIBUTION

135 La Salle

Francisco

Hotel Statler Co.; Roosevelt

these two markets-

Ask for "Wool" or

For

CHICAGO 3

Market- ton;

authoritative in¬ Corp.; Hotels

Booklets giving

Middle West

Estate

Real

& Co., 61 Broadway, New*

and

■■

Commodore Hotel; Hotel Lexing¬

National Association

Dealers

San

Mont-,

Analyses of situations considered,
especially attractive at this time,
including
Brunswick
Site ;. Co.;

York 6,.N. Y.

CARTER H.C0RBREY& CO.
o/ Securities

South Shore &

Chicago
Bend

King

Member,

Calif.

Re¬

Stocks—Current

Canadian

Tele. CG 271

Street,

gomery

CHICAGO 3
TeL Randolph

ment

Co.—An¬

situation

way,

i/•£

.•

current

prospects for 1946—Comstock & "
Co., 231 South La Salle Street,
Chicago 4, 111,
: «' ' ;

•

'"v.1 *»':

•'

•

Ray-O-Vac
,y.i'

•.

■

*•»

alysis

interesting low-priced speculation
•—Hardy & Hardy, 11 Broadway,
Niew York 4, N. Y.
Also available is
circular ori

iirrns imentioned will be pleased

It is understood that the

■,

"V'tVt1*.:'.

yfr?'--*

Street; New York 5, N. r'Y.

Dealer-Broker Investment

Signal

Miller Manufacturing

Bankers Trust Co.—An analysis
&
Co.,. Inc.,
67
Wall

;

Trading Markets

Automatic

Thursday, March 21,1946

9, Mass.

Volume 163

Number 4*474

THE COMMERCIAL & FINANCIAL CHRONICLE

"Growth Stocks"
In

Fortnightly Market arid Business Survey; Ei F.

Lamson Bros,

Kaiser & Co. Joins

Chicago Personnels

Los Angeles Exchange

CHICAGO; ILL.—Elmer J. Stefaiiy

has

become

with

connected

LOS-ANGELES,

CALIF.-^Legeneral partner

Bache & Co.; 135 Sduth La Salld'

In the March 7 issue of "Forthnightly Market and Business
iahd M. Kaiser,
Street, after serving in the U. SY
Survey," published?by E. F.Huttori & Go:, thereis a{iist;Of14!Cdni*Army.
'
•"
■
s % d£-;Kaisef^
to membership in the Lqs Angeles
panies,: characterized by the firm^^—
"""' '
' "
*s>':r4
5' :■ \ y,l^
}
>i j
I
'
£ 1
'*
as "growth
Stock
companies."/. In iritrpMl! (Special" 'tb Thtf FInaNcial ChAoNicliI)
^Exchange;it- -was- an¬
nounced. •
ducing^'th e list 'the S publication'
c*

states that" "The
ment

which

formation

George T. Carrier of

fundamental ele¬

underlies

the

industry

■

J CHICAGO,

ILL. —Nbrman It

COLUMBUS, 6: w George ^ Salle" Street; He! vvas previously
Currier, a local dealer/in securi- vHth First Securities Company df
Chicago, Ryan-Nichols & Co., and
clusive circle of 'blue chips'^ is -ties, was acquitted on every count"
.
by a jury Sitting dp the Common John JY Seetley & Co. growth. Industrial growth results
•Pleas •Court, Y Wyaridot
Gountyy
primarily from research, managej (Special to The Financial Chronicle)
rial ability and an- expanding pop¬ Upper 'Sandusky, O.
Mr. Currier was'indicted*' on va¬ j CHICAGO, * ILL —Lambert
E.
ulation.•
: ■ - .*
-

change

investor,
discover

the

ideal

would

connection

counts

with

the .purchase of stock of" the old

Fidelity Building

industry or a company
in its initial stages of growth. The

and -Loan

Co.

guftty r completely vindicates Mr.

risk factor attendant upon such a

Currier.

;

ZoTlar

Maurice

in the Twenties, was
A somewhat analogous

even

With

(Special to* The" yiNANCiXtiC^owitSiB)
parallel is to be found today in
1; CHICAGO,
ILL.—Maurice A
industry where rapidZollar has become associated with
technological changes are occur¬
ring, placing now one and now an¬ bidder, Peabody & Co., 135 South
other company in an advantageous La Salle Street; members of the
New York StockEx&ange; and
competitive position. While a sub¬
leading exchanges: : -Mr.
stantial growth in the industry as dther
Zoller was formerly Vice-Presi¬
a ; whole may be
anticipated, the
dent of Welsh, Davis & Co.
fortunes of individual companies
are likely
to vary greatly from
Correction
I
?
year to year until greater stability
is achieved in the field df techno¬
In the ''Financial Chronicle" of
logical developments."
March
if? was r epor fecf th^t pdul
V The stocks in the list comprise D.
Speer & Co. was ehgaging tri¬
Abbott
Laboratories,
American ple* securities business from of¬
Viscose, Bond Stores, Borg-War- fices at 610 South' Broadway, Los
ner, Dow Chemical, Food Machin¬ Angeles, Cal.
We have been in¬
ery, Golden State, Libbey-Owens- formed tHat, while Mr. SpOer is
Ford, McGraw-Hill, Charles Pfi¬ forming his own investment fifm
.

the aircraft

;

Philco, U. S. Plywood, Victor

Chemical and York Corporation.

he was with James E.
Bennett $ Co.
; j; y,v ;' r, ,v
.<

„

in Los Angeles, his offices'are; not
yet officially open'for. business.

(Special' id

of Wirt. Blair- & Co.
•

sjen, fpririerly .with Rawson ,Lizars

that

cancellation

war

West Jackson Boulevard.

Spokane*,

and:

Churchward & Co.

spe¬
'

WEST

HAVEN, CONN,Churchward & Co., Inc., 37 Water
Street, is engaging in a securities
business.

the

■

Nelsdif & Ram^

MrY

Atherton

stated

Company's-expansion

that

the

program In¬

cludes

'Old" Preferred Stocks ;

CHICAGO, ROCK ISLAND

;|S|i & PACIFIC

(Special to Thet finanfcial CHsomcti)

CHICAGO,

Co.,

RAILWAY

Wall

KITCHEN & CO.
|' 435 South La Salle

cashier.-

<as

Vickers was formerly
With Series F-l.
.

Bostig-has-re joined Straus

E.
Bios -

sfer,, 135^Southr.. ILa ■ Salle

Street/

sjfter servirig;ih- the-army.

Mr.

connected

Tel, ST Ate 4950

:; ;

;Y'y:Y.;::

Office in? Lewistown
(i-

: *

ActiveTrading Markets

Stock Exehangefahd other lekdiiig
exchanges; announce the opening

Am^rican^Service Co^
Preferred, Class?}A and Common

ofYan office ih

LeWistown, Penn¬
sylvania, at-23 E; Market Street
■

I The

R. Hoe & Co., Inc.

office., is under the1

new

Common

„

management of. C h

E.
BKtiilV"Kis -retiirii
a u n c ,e y

*E. & G. Brooke Iron Co,

frbm service in the armed forces1

Common

inNovember Of-last; year, has been
associated with the firrn as their

representative" iri LewiStown;
addition

^Nfat'l Terminals Corp.
Y

maintain

offices

^Micli. Steel Casting Co.
Common

Pitts¬

Cdhrads^.&f Compariy, President;
burgh, Hagerstown, Los Angeles;
S. .A.-Sandeen, S. A. Sandeen &
San Diego and Long Beach.
Cpv Vice-President; and Boy J. ? The firm's other

detergents and for produc¬

tion bf a number of products not
heretofore manufactured by • the

Company. A central laboratory is'
under coristrUCtioh at MLorristOwii;
N. J., at Which fUridamehtal 'ahd
exploratory feseardh wiil 'be'cbfif 'The'Company's operations Wefe ductecP to supplemerit *4he
eifteh-1
presented in a "short-form" state¬ sive fesearph kctivitie^ "OL: fhd
ment; ^Comparison for the two Comparfy's
bpe'ratihg divisions and
'$years follows:
"'; subsidiaries. v
..

The

cmpany

received from

customers

L..

$2b7,594.239

x* ism
$274,104,501

These

receipts were expended for:
The cost Of g'obds ' and- seryiOes

•

bought ftofa' othef'sYi

The cost of human energy
(wages and salaries)
cost of tools wearing odt
(depreciation
The cost of payments ordered by Government (taxes)'
The cost Of using the tools (compensation to'owners)

Y 153^546Y082
62 708,811

The

Y
.■

S'-1'-"*

rV?-'

."'il

'?£#■■(

15,765.146

>'-<■

;i2TYf74v330
14,901,453

3*,123;$22

3,14B,459
?.hV."ttTirrfr

Tot^; receipts
^Included

lS3i000',0OO-for eohtingettoies.

$270;742,69B
.

..Y.\

4277",22^123

regii-

business.

from military

acquaint-all hiettlberS with changes

jih; laws; regulations ahd markets.

ing.

as a

due 1953

3-5

3:6-6 due 1953

Deb.
Del?.
S. F. Deb.

due 19(51

3%dhel960?

ST.

ridised baltetin

Chicago South Shore & South Bend R. R.

1st C. T.

^Oak Mfg. Co.

IVItg. & I'll 5Yz due 1957
S.F.DeK.
S
die 1955.

Pennsylvania Gas & Elec. Corp.

Deb.

*Sioux City Gas & Electric Cb.

1st

rii'iiM1 'W 'iff i7F n'lrfrVt'i,'

Mtge. C.T. 2%due 1975
4V4 due 1960

Guenther Law

Incorporated

131 Cedar Street .NewYork 6,

1 i

N.Y.

Telephone COrtlandt 7-5060

Boston Chicagd Philadelphia Sati Francisco

Macfadden Publications
Gisholf Machine

*WaItbem Watch

Deb.,

Company
*

Prospectus

upon

v,*:

All Wisconsin Issties

due 1960
,

due 1975

request \

;

'^AXlMXirN^COMBSI^Y
».•

Y Y"

Y'.^-

Chicago NeW York

Boston

Incorporated

Milwaukee'

;

* *

Miithbapolis

"X' "*4 '• Y
Omaha

Kansas City

GERNOfl

HOLLEY, DAYTON A
Member—Chicago

10^
CG

1200

due 1958

S. F. Deb.

Teletype: CG

S(4'duel948

Deb,

INCORPORATED

Telephone: Dearborn' B1 Bp

Albert Frank

1st S. F.

135 SOUTH LA SALLE STREET

CHICAGO 3, ILLINOIS

%ia\i -

Plans prepared-conference Invited

due 1976

PublicUtilitieiConsoIidatedCorp. 1st Mtge*.'"

Branches

Its

if v\*s a.'

due 195L

1st

Company

Mtge.

Telephone Bond & Share Co.
^UnitedJ Transit Company
»

DOYLE, O'CONNOR & CO

•

due 1953

1st

Corp.

^South Coast Corporation

Copies available uqoyi request

due 1964

Noftb Penh Gas

«;

All

Iri

,v,r„. -v

ro^erCoffijiaiiy Deb.,

National Gas & Electric

lULVNOtS

phone state 0101

ADVERTISING

parther' in E. W. Watts'

Company
Associated Electric Company
y ^Consolidated Grocers
Corpefatioh
; - v Cudahy Packing Company.

FINANCIAL

teletype co ser

&|Co., First National Bank Build¬

American Gas & Power

Truest

SALL^ STREET;.;'

CHICAGO 4,

service and is again

active

NeW York Water Service CoC

We kdve piep'drfd

231 SOUTH irA

Brownsville, tex.—Emery
William #atts,- Jr., has returned

neld ortl^ When the need arises to

Anien^kii,^^Gas

ADAMS & CO.

Meetings, he said, will be

circular;

Back From Service

•

jatiohs^ afebtihg ' tEe' " securities

IB;785,107

17 844 897

administration of laws and

155,794,660
-60,451,951

17 729t303

IciteireSt ;ahd^:dlyideiti<r_______

the- local

group' and would work
together for the Welfare of both
dealers and cHehtele and aid in

* Recent

•.

Exchange and Los Angeles Stock
Exchange. .*
yYyy,

ford.investment brokers had joined

Common and Preferred

projects for increased "-ca¬
exchange
$267,'5i94'000 in 1945; as com¬
pacities
for
nitrogen products, Eaistoh,; Secretary-Treasuifer.
mefebershipsYare^''l^^YyprkvCiihflf;
pared with $274,104,000 in 1944.
acids, alkalis, dyestuffs and syn¬
Mr! Bastdri stated that all Rbck- Exchange,
? ' Selling' prices; for which ceil¬
Philadelphia " S t o c k
thetic

ings are' established by Govern¬
ment regulations, have remained
substantially the Same for the past
decade, while hourly wage rates
were 83 %»higheY in T945 than the
average ten years ago. *

Tele. CG 28

V I

Buckley Brothers Of Philadel¬
phia, members of the'New York

their* principal
Officers of the newly formed, office iri Philadelphia and an oforganization are Paul Conrads, fice.in New; York, Buckley Bro¬
-

Buckley" Brothers Opms
?

themselves and the public.

Street

Chicago 3, III.

- -

•.

louis-sAN frXncisco

Wiri W. Vickers

Chrontcle)

ILLvr-Charles

ST.

Street, New York City, announce
the association with th&ri of Ed-

ifany, Board Of Tfadd BUildihgY : I
(Special to The Financial

S. B. Cantor

;

CHICAGO, III—Archibald Bouion i^With Daaiier'F* Ri&e'dg Com*
t

•

RY.

DENVER & RIO GRANDE

S. B. Cantor & Go.

Inc.

ser,

Reilly Staff

Edfwiir % Vickers WiGi

South La Salle Street.

NeW

Coi ahd' of Burt,

TRADING MARKETS
"nu't

WESTERN RR.

Co,, fdf a riumbCr: of years^ has
become1.; asSdciated1 with
Pairid,
Webber/ Jackson & Curtis, 209

officer of Hi L. Harker &

was a;n

aclihe iti' volume of businessY The
ers

thers

Gompariy received from; custom¬

•,

City

ac¬

^fdrk. imidJYCMCatgd Securities Dealers Association for
the promotion of the highest pos¬
Stock Exchanges.
In the past* hV sible standards of
business; among

share.;

Mr.'H. F. Athertbm Fresideht;

years

office at 42 Broadway.
Mr. Neu¬
bauer will make his headquarters
in the firm's
Chicago office at 141

•

brokerage

some

charge of the New York

Utility Trading Departmeilti Mr.
Brennan was formerly with Trus¬
ter, CUrrid & Summers. ;-

j CHICAGO," 111.—Earl C.* Pdfef-

Form New Association

(Special -to The Financial:

$10,913,605^: equal to $8.54 per of

Stated

York

been with the firm for
in

sdciated with them iA the; Public

•

per

to partnership in the firm
April 1st.
Mr. Mathews has:

J. F. Reiliy & Co., Inc., 40 Ex¬
change Place, N.Y. City, announces
that James L iBrennan Is' now as-

$8.14

bauer
as

fr-

Share, This compares with net in¬
come iof 1944' df $18,025,075 or

New

J.F.

Chronicle)
ROCKFORD,
ILL. —Rockford
CHICAGO, ILL.—Herbert ; J. members of the Illinois' Securities;
Allied Chemical & Dye Corpor¬
Burf^has; become associated with Dealers "Association-and the Na¬
ation in its annual report to stock¬
William Blair * & Company,- 135 tional Association' of Securities;
holder's:. released
today showed"
consolidated net income for 1945 ^ South La* Salle- Street, members Dealers have formed the Rockford
of

H. Mathews and William A. Neu¬

James Brennuif Joins

TBSs ^PiNAncial'' Chronicle)

Rockford Dealers

Herbert Burt Join& Staff

Dye

Releases Annual Report

Francisco

;

Bros.

Co., members of the New York
and Chicago Stock
Exchanges and
other exchanges, will admit
Joseph:

CHICAGO,. ILL.—WiUiam G;
McCormick II has joined the staff
df Hplley, Dayton* & Gernon, 105
BoUth La Salle Strbet; aftfer servr
ifag^ in the U. S. Aririy.:
v ^ |

M-'-

Allied Chemical &

cisco,
Wash.

Kidder, Peabody Co.

zer,

San

tivities, the firm conducts

dustry,

was

high.

member¬

cialized investment business in
state, .andt municipal bonds. < •' Of¬
fices are mainiained in San Fran¬

Rellly has become affiliated With
First Securities Company of Chi¬
cago, 134 Sputh La Salle Street;

(Special to'" The" Financial Chronicle) ;.v"

apparent before World
War I but the mortality in the in¬
very

CHICAGO, ILL.—Lamson

df Columbus.„ The verdict of not" Formerly

course, ^ however, is very great.
The growth of the automobile in¬

dustry

the

and

In addition to its

rious

holds

Stock'Exchange,

•

"From the point of view of the

also

ships in tlievNew York < StociTEx*
change, the New YorkA Curb Ex¬

company from a sometimes highly
speculative' venture into the ex¬

The firm

pavis has become associated with
PaulTL BavisT& Coi, 10 South La

Admit

v."

Columbus Exonerated

trans¬

Neubauer and Mathews

(Special'to The'Financial Chronicle)

;rJ

Stoc^

So. La Salle St.,
262

Y Y. Y

Exchange

Chicago 3f, HL
.,

Centr^l

C? 30

Offices In Wisconsin

Eau-C161re

Fond du Lac

Madison

l of Crosse

■BnannMMn','rtiiins

THE COMMERCIAL & FINANCIAL CHRONICLE

1504

Michigan Personnels
(Special

the McAleer Manufacturing
of the outstanding stock of
manufacturers of fishing' roels, thus giving

N. Bradley Higbie, Jr., President of
Co., reports acquisitioii .of the balance
the

Reel Co.",

Bronson

McAleer 100% ownership.

Financial

Connecticut Brevities

Chronicle)

MICH.—Patrick

Eglinton and William O. Seclbach,
Jr., have become associated with

Baker,

Simonds

The

armed

Co.,/Buhl

Both have been in the

Building.

approximately $345,000. used to make the purchase was part
recent underwriting by Alison & Co., Detroit,
of 50,000 shares of McAleer 5%<^
amounted to $91,182, as comconvertible
preferred, $10 par,
pared .with a net of $78,410 for
and .50,000 shares of $1 par. com;

Tub

DETROIT,

service.

the

past Mir.
Seelbach was with the National
Bank of Detroit.
; ; /,
';

of the proceeds of the

Thursday, March 21, 1946

•

For the

ended pec, 31, 1945, the New Haven Clock Co. had
$4,235,174 against $6,276,175 the preceding year.
Net
income was $22,458 compared with $192,864/rEarnings per share on
the 6V2% preferred stock-were $5.13 for 1945 against $40.90 the
of

sales

net

year

previous year,? while" the

common shares showed a deficit of 3c against
earnings of 75c in 1944.
The income account for 1945 is subject to
adjustment for renegotiation bf4>1, /..:''V;
wa/contracts.
are: subject to adjustment for re¬
'
On March 6, the stockholders negotiation of war contracts:

the 1944 calendar year.

Remaining
$330,000 | derived
from the financing will be used
reimburse

McAleer's treasury

capital expenditures incident
expansion and diversification
of the company's activities.
for

to Mc-

Among; products added

postwar list are wheel
side car carriers and a
compressed air* vacuum cleaner.

Ale^s

1 Trading

Call has been added to the

of Crouse & Co., Penobscot Build¬

ing,

increase

last

over

DETROIT,
'

Graham and Victor F.

■;»

Detroit,

Graham

and

sewer

bonds

The

coupon

through 1961; and 1.25%
maturities .1962 through 1976.

;

being offered pub¬
prices ranging from

The issue; is

UNLISTEDS

licly

to 1.25% yield for ma¬
turities 1949 through 1964, and
at a price of 99^. to .97 for ma¬
turities .1965 through 1976.
(L60%

Wm.C.Roney&Co.

account

the

BUILDING

Harris

DETROIT 26, MICH.

Phone
Cherry 6700

Sattley & Co.;
Co.; and; Smith, :3?en~
V.

Co.;

Crouse

Stranahn,
McDonald, Moore

includes:

Co.;

nett & Co.

Co;,' !and

McDonald-Moore /&.

associates have purchased

Charles A. ParceHs & Co.
Members Detroit

issue
sewer

a new

of $610,000 Lorain, Ohio,
1% bonds due serially Nov.

to 1961.
These bonds,
which are payable from unlimited
ad valorem taxes and free from

•

1947

Stock'Exchange

all present

Federal income taxes,

Were offered to yield from 0.45%

Michigan Markets

to 0.95%.

639 Penobscot Building

i;
of

DETROIT 26, MICH.
Telephone

DE 206

Ben F. Saylor will be President
the newly : formed • Peoples

position as Vice-President of
Bank; He. was

his

the Wabeek State

associated with Wabeek for

about

Peoples State Bank will
be located at John R. and Ste¬
venson
Streets in Hazel Park,
The

Electromaster, Inc.

building soon to he placed,
construction,
the new,
President announced.
in

under

Sheller

Manufacturing Corp.

Directors of. the. newly-formed

People's

State

Joseph

are:

Reports furnished on request

Mercier,McDowell
& Dolphyn
Members Detroit Stock

American Forging

Exchange

faETROIT;^^

Mueller

& Socket Co.

MICH;

---

Fred

joined the staff of
C. G. McDonald & Co., Guardian

The

ferred

and

shares of $2.50 par stock be issued
in

authorized capital of

450,000 shares

par common

exchange for each of the pres¬
ently; outstanding $5 par Shares.

stock.

of no

Jan.

The property and assets of the
Haven Clock Co. will be

Fenner

to the new corpora¬
tion ih consideration of the issue
transferred

months,

new

cumulative
of

$481,360

Paine, Webber, Jackson & Curtis,
Penobscot Building.

First of

Michigan Corp.

Reelects Officers; Mci*

$1,527,386 the
preceding year.
On a per share
basis, earnings were $5.90 and
$5.38 respectively;
i Surplus at the year end was
$8,527j414 compared to $6,987,747

bank

loan,

the purchase of additional ma¬

at the end of 1944.

chinery and for general work¬

//;:://,■'

Frincke

MICH/Zj- Theodore

appointed ^Assistant
Guyor Osgood, Man¬

was

Treasurer,

assets

admitted

://:•//'

the

common

after taxes and be¬

fore

renegotiations, .for which
Is expected.
This
compares with a net of $544,326
or: $2.72 a share in •; 1944 after
renegotiations and a $138,635.
refund.
'
*,
v
no

refund

Bafck From Service
DETROIT

total

Inc.
reported
net income of $564,726 for the
year ended
Dec. ,31r 1945 or
earnings of $2.88 > per share on

earnings of $2.25 *in 1944,
:///': * fit* / * //;// ,|:ff/;
The balance sheet of the Hart¬

showed

Veeder-Root,

Earnings per share on the com¬
mon stock adjusted to reflect the
new capitalization showed a def¬
icit of 10c in 1945 compared to

ford Fire Insurance Company for
the year ended Dec, 31, 1945
,

J *f"..''

Dec, 31,1945 against

New Haven Clock Co., the pay¬
ment

Screw Company and
its subsidiaries showed net income
of $1,672,263 for the year ended

6H%
of
the

preferred

Circular

ager ^-Of/the Municipal "Statistical
Department; and all directors;/of¬

department heads Were
reelected or appointed at the an¬
nual meeting of the First of Michi¬
gan Corporation', Buhl Building.
The1 company- reported a 36 %
business

increase, in' volume of
over the previous year.

$176,185,403—an increase of 10% ZZZ'/r
over the preceding year.
Stock¬
Sales of power made by; the
holders' equityper share
was United Illuminating Company
$104.67 compared to $97.03 at the
during the month of February
end of 1944.
totaled
54,978,052 /kilowatts;
\
Tho underwriting' exhibit for
some 13% less than sales for Feb¬
1945
showed" premiums Written
ruary, 1945.
The sharpest decline
totaling! $61,266,768, an : increase was in the
Bridgeport area, prin¬
of nearly lZVz%.vk
'
^ » '• ^ ■'
cipally due to the General Electric
Net underwriting' gain of $2,strike.
494,323 was 70% greater than in
(

1944.

Underwriting gain per share for
Late in
the fall, the company reopened its 1945 was $2.08 compared to $1.22
Chicago office under; the manage¬ in 1944 and net investment income
ment of George L. Barrowelough, was $3.72 and $3.55 respectively.
who had been on leave of absence These figures are before Federal
Edward A. Uhler, formerly
income taxes Which amounted to Lieut. Col. A.C., has returned from
for the duration of the war.
$1.25 a share in 1945 and 78c a active service and has resumed his
The following servicemen have

Edward Uhler Returns

returned to their duties With the

Corporation:' Cmdr. Frederick M.
Alger, Jr., Director; Pfc. Fred H.
Allison, Treasurer; Col. Emmet F.
Connely, Chairman of the Board;
Capt. Theodore Frincke, and Ma¬
jor Erwin R. Larowe, Manager
Corporate Statistical Department.

Davidson, of Federal Department
Stores;

Roy F. Koltz,
Aronsson, of

attorney;
Aronsson

Printing Co.; George N. Higgins,

Request,

er^ and

manufacturer; Robert C;

Taylor,
TRADING MARKETS

DeYoung, Larson & Tornga
GRAND RAPIDS,
GR 84

MICH.

Phone 98261

owner

Marvel

Prod¬

1944.

activities
-i

•7

The New Haven Water Com¬

pany/ showed net income of
$595,191 for the year ended
Dec. 31, 1945 which compares
with

vice

president of R.

S, Dickson & Company, Inc.
He
will make his headquarters in the
firm's New York

Street,

office, 30 Broad
heretofore.

$453,648 for the preceding

year.
Fixed charges were cov¬
ered 3.62 times compared to 2.92
times in

Hartmann Handling
Securities

1944 and earnings per

share were $4.25 and $3.24 re¬

Henry Hartmann is engaging in
securities business from offices
at 15-25 Whitehall Street, New

spectively.
♦
Equity per share at the year
end was $65.10
compared to

York City..

$63.51 as of Dec. 31, 1944.
*

Gross

profit

y-'fW

sales made by

Niles-Bement-Pond

dropped

Co.

Stenzel Rejoins Harriman
Roland Stenzel has rejoined the

of Harriman Ripley & Co.,
$15)604,755 in 1044 to $9,092,194 in 1945.
Net income for the Inc.,, 63 Wall Street, New York
Irwin I. Cohn, Detroit corporation
Mr.* Stenzel has recently
past year. was $1,463,853 compared City.
lawyer.
Charles D. White, of to
$1,697,551 in 1.944 and earnings been in the military service. Prior
Highland Park, has been named per share were $1.85 and $2.15 thereto he was manager of the
Cashier.
tTfe*
respectively::- The figures for 1945 Hartford office of the firm.

ucts

Co.,

Highland

Park,

and

staff

from

Industrial Brownhoist
"

L. A. Darling*

Aeronca Aircraft
v

•

u ■ ■:

Analysis

^
on

Request

■■:

..,

Common

Member

Detroit

Stock

Exchanges

Primary

Members Detroit Stock Exchange

Battle

Creek

Bay City

Lansing
Muskegon

GRAND

RAPIDS

New York:

BOwling Green 9-2211

MICH. TRUST BLDG.
Phone 94336

Teletype GR 184

4../ J.w

•:

Markets—Statistical Information

chas.w. scranton

,Hartford 7-3191

v. :

Connecticut Securities ;/

WHITE, NOBLE & CO.

Teletype DE

Hartford and

Inquiries Invited \r/

DETROIT 26, MICH.

CONNECTICUT SECURITIES

Exchange

1051 Penobscot Building

Fifty-fifth year of Dealing in■

;

Curb

Primary Markets in
,

Mo re land & Co.

■m

kfad Boston Stock?

Z/ZZ/w'/y Exchange ;.t

;

Brothers

Associate Members New York

Conv. Preferred
•

Members New York

Resistance Welder
:

common

i///z^'/^//r;(/ ./r'; 'v.
*

expects to

company

the

Standard

of New Haven Clock Co.
The

dividends

or $3.10 per Share compared
With net income of $3,154,069 or
$2.75 a share for the preceding 12

some

ing capital/.

DETROIT, MICH.—John T. Merejoined the staff of

ended

Connecticut

stock,

216,000 shares of common
New Haven Clock &
the
latter compahy of all the liabilities

Building. In the past he was with
Paine,/Webber & Co.

Mullen has

the

Light & Power Company reported
$3,553,058 available

will be used to retire the

(Special to The FwanculChronicle)

months

twelve

1946,

net income of

Buhl

Beane,

31,

for

D.
Lynch,

Merrill

with

the

For

New

DETROIT/ MICH. — Jack
Pierce,

Clock / &

100,000 shares of $20 par value
4^2% cumulative convertible pre¬

(Special to The Financial Chronicle)

a proposal to split the
company's stock on a two for one
basis.
It is proposed that two new

corporation

new

S/'v:

will vote on

three

corporation to be

sell 62,500 shares of 4H% pre¬
ferred stock, proceeds of which

Senator; Maurice A. Haupert, Highland Park lumber deal¬

new

the New Haven

called

Building. J

Gould

held,

common
a

Watch and the assumption by

State

Tele. DE 507

c. H. Dutton*

shares of

has

Maurice

Buhl Bldg., Detroit 26
Cadillac 5752

Powdrell

26, the stockholders
and Alexander, Inc.,

To Duties at Dickson

12 years.

detroit

was

ficers and

State Bank of Hazel Park, it Was
announced/Mr, Saylor has resigned

Teletype

Randolph 5625

Mr. Gruel

the co-managers,

In addition to

Exchange

On March.

stockholders will receive for each

stock

1949

MICHIGAN

Bros.

(Special to The Financial Chronicle?

maturities

for

1.75%

rate

dis¬

bonds;
a

Sutro

Port

garbage

carry

with

Merrill- Lynch,

with Van Grant & Co.

for an issue

of1 City*

$1,600,000

was

and

Pierce & Cassatt.

was

co-managers,

the successful bidder

Call Us On Any

Established 1919

Gruel are

Co.,

posal system revehue

With S. R. Livingstone $ Co.," Pe¬
nobscot Building. In the past Mr.

Huron

•DE167

MICH. —< Stuart

syndicate
of
investment
bankers headed by the First of
A

against $4,731,836 in
the full year - of 1944, Net in¬
come. for the 10-months* period

Teletype

(Special to The Financial .Chronicle)

plan of dissolution of
Whereby present

company

will have
^

$7,282,637.97.
<

the:

Watch Co.

year.

Michigan Corporation,

812 BUHL

the XJ., S.

serving/in

and Watling, Lerchen & Company, both

Net sales of McAleer for the
Oct. 31, 1945,
reached an all time high of $6,10 months ended

Members New York Stock

after

staff

Army.

the same pe¬
Market value of
stocks traded during; the month
50%

riod

was

MICH.-^Clayton; R.

DETROIT,

the Detroit Stock
February /totaled
shares,
representing a

644,728

approved

(Special to The Financial Chronicle)

Exchange

clocks,

529,654,

■;/:■:/;///

5.///"///••-'■ */

Bell

System Teletype: HF 365

co.

New Haven
New London

Waterbury

// Danbury

Z:/./Members N. Y. Stock Exchange

V",v.v

•"

^/••y.Vv"-Vx"'v*-V*-».-i*1

Volume 163:: Number 4474

' "

THE COMMERCIAL & FINANCIAL CHRONICLE

N. Y.

Securily Analysts
Nominating Committee
The

Executive>t Committee

candidates

President,

Nomi*

hating '.: Committee1 ;to.;

In serving

nom inate

for

President,; ViceSecretary,
Treasurer

the important industriaLagricultural

and seven places on the Executive

Company's

studies

Committee.

reconversion

cers

panding peacetime production.
Company's long-term program
of
corporate simplification wa$

The" election of offi¬
and members of the Execu¬
tive Committee will take place at
the- annual meeting of the
society
to be held in
May, at a date later

terms

which

will

Missouri

to be elected for

are

one-

ary,

■t

All members of the society

during

which

requests

its

names

the

not

later

April
Members

the

from

revenues

Co.

taken

over

March

i th

4,195,000,000

year

charges
$3,389,000

were

pared

Kernjisch, Sutra Bros. & Co.

The

with

the

for
as

com**

in
1944.
these
charges

$3,672,000

reduction

reflects

the

savings
resulting
from the redemption of bonds by
•

subsidiary in 1944 partly offset
by interest on additional bonds
Issued by the company in 1945.
a

Consolidated

Lloyd B. Hatcher recently Open¬

for

income

net

1945 amounted to $8,536,000^ com¬

repre¬

pared

with $9,019,000 for 1944
earnings having been in¬
creased by $1,316,000
of
over
the
Georgia,
President
Robert
amount previously reported due
Strickland announced.
T,he offi¬
to tax credits, etc.). •
ces are located at 15 Broad Street.
,;V '
sentative of the

Investment De¬
partment of the Trust Company

with

Joseph J. Sheehy

ipal

Bond

Trader.

11944

After

Sheehy
formerly was with the Municipal
Bond Trading Department of the
Chase National Bank, New
York,
for many years.

This

;

office will represent
the Bond Department of the Trust
new

Company of Georgia in New York
underwriting and distribu¬
tion of municipal, state and
U,; S,

in its

Government securities.

The Trust

Company, established in 1891, al¬
ways has been prominently iden¬
tified With underwriting and dis¬
tributing, investment securities.
Mf.

Hatcher, who recently

was

discharged from the Marine Corps,
with the rank of Captain, has been
with

the

1935.

Trust
was

Company

York

Boston.

New

York

and

,TJ.

Stifel, Nicolaus & Co., Inc;, in
of this year offered
45,470 shares of common; stock
(par 50 cents per share); of the
Hammer Dry Plate & Film Co. at
$2.30 per share. The business of
the company consists of the' sen*
sitizing of .film base purchased
from other manufacturers,
arid
the early part

•

„

♦.I'1:" V1
Edison

of $1.20 per share were paid dur¬

ing

the

year.

contribution

Company's

to; the

Stores,

Offices

of the

new

April 1st.

firm- will, be

CITY, MO.—Effective
15th, the firm of Lucas,
Farrell & Co., 921 Walnut Street,
became known as Lucas, Farrell
&

Satterlee, Incorporated.
Offir
of the firm, which is located

cers

the

Columbia

Bank

Building,

Mark A. Lucas, Jr., President;

are

Leo

W.
Ger¬
Faltermeier, Secretary and

Farrell

Richard

and

Satterlee,- Vice-Presidents;

A. G. Edwards & Sons

year

ing exchanges; will admit John Ri
Meyer to partnership as of March
28th.
Mr. Meyer; will acquire the
Exchange membership of Gordon
D. Stott.
His headquarters will
•

be in the firm's New-York office
at

61Broadway.

■

taxes

the

tired
net

Missouri,

on~

income

available

$641,279,

for

Bank

^Pickering Lumber Corp

Chairman for Metro¬

Majestic Radio & Television
Corp.
Luscombe Airplane Corp.

Chairman of the St. Louis district.

Mr. Long will have charge of the
activities concerned with the con¬

Statistical

Information

Request

tinuing sale of Savings Bonds'
particularly to individuals, and
the furtherance of the payroll
savings plan.

for

While & Company

MARKETS

Berkshire Fine Spmningy

j ;*Ampco: Metal, Inc. •;

politan -St. Louis of the United
Savings Bond Division of
the
Treasury
Department.
As

div¬

$1.42

Wilcox-Gay Corp.

Vice-President

States

preferred stock - (re¬
Nov* L 1945), leaves!

idends of

Long,

Head; Chairmah;;fOi| the State ; of

After de¬

MercantiierCommerce

and Trust, CompanyJ of St. Louis;
has been appointed by W.
W.

excei^s profits
of Falstaff Brewing Co.
$2,307,895 for the year:

ended Dec. 31, 1945.

^Mid-Contineht Airlines

-•

Earnings after all
charges
including .depreciation, hut,J)e-

Insurance Stocks

^Stromberg-Carlson Co.

Bond Division

.......

Primary Markets

Bank

Long Heads Si. Louis
Disfricf of U.S. Savings

total

effort,

war

covering a period of three years
represented goods and services
having a value of $65,889,400.

Members St.

l$$«d0r Preferred and Common

Chicago, Wilmington & Franklin Coal ~
Chicago & Southern Air Lines
Collins Radio, Common
Kansas City Public Service, Preferred and Common

Brothers

KANSAS

March

produced during the net was equal to 65 cents per
months of the year. common share in 1945 as against
Net income was $658,935,. equiva¬ 60 cents per share in 1944.
lent to $1.22 per share. Dividends

photographers.

;

Louis Stock. Exchange

Mississippi Valley Trust Bldg.
.

ST. LOUtS 1, MO.
JBell System Teletype—SL 477

•

Consolidated Dearborn

Inc.,

with offices located at 315 Wash¬

Southern Union Gas

Ave., St. Louis, Mo., and
Operating a nation-wide system

interested in

Southwest Gas Producers

women's

shoe

consolidated

41
!

National Oats

are

Anderson Prichar d

Southwest Natural Gas

net

Formed; NYSE Firm

Rosenthal & Co.

for

mercial

Lucas, Farrell & Satterlee
;

eight

■

'-Ji

*
.

Punta Alegre Sugar

^•

•

mem

★.

mm''--.-

■

Metropolitan St. Louis
COMPANY-:

Land ret h
St.

Louis

Building
2, IVIo.

710 Locust Street

Garfield 0225

SL 456

outstanding^a't^h®.vclosb ■ .of thd
previous 'ybiirvheforb setting aside

^ Universal Match

SCHEH€K> RICHTER COMPANY
BelC Teletype

•

Common

Old Ben Coal, Common
i;

Rosenthal ^ Co. to Be

re¬

was

work

first

the

stores, earned
profit of $1,360,520 for the year 1945.
Without
giving effect to the two for one
split up of the common stock, ef¬
fective as of Jan. 28; 1946, the net
profit is equivalent to $2.77 per
share on the 420,059 shares but?
Harold L. Rosenthal and Alan
standing at the close of the year.
H. Rosenthal, member of the New
This compares with $1,091,825, or
York Stock Exchange, will form $2.45 per
^hare ^rii 384,781; shares
14.

war

ington

Opening jof the new office was
previously reported in the "Chron¬

icle" of March

Co.

$26,868,806; of which 84%.

cutting of this film in various
since sizes for rise by portrait and corrH

formerly associated

Stove

ported sales for the year 1945 of

standing

f ment of the Guaranty Company of
New

American

share in 1944.;

calendar

Co.

reported net earnings of
$992,422, compared with $944,841
in 1944. After dividend require¬
ments on the preferred stock the

ducting estimated taxes of $1,644,000, net profit for the year
was $663,895.
This, after pro¬
vision for dividends paid to the
holders of the company's, out¬

with the Municipal Bond Depart-

The

Were

Investment

1945

available; f o r common
Stock was equivalent to $2.58
per share, compared with $2.85
per
share in 1944.
Common
stock dividends paid were $2,40
per share in 1945 and $2AJ5 per
-

American

Illinois for the

fore income and

.wartime short- J

$100,000,000.
«t<

The

ance

Munic¬

Mr.

overcome

additional

10.
^1

City, to act

Government and

are

•

New York
brokers in U. S.
municipal secu¬
rities.
Mr. Grab was formerly in
the trading department of Carl M.
Loeb, Rhoades & Co.
Place,

Admit Meyer As Partner
expected to exceed
$140,000,000, while expenditures i*
A. G. Edwards & Sons, members
to care for normal growth dur- ; of the New York and St. Louis
ing the period will reach an' Stock Exchanges and other lead¬
ages

deducting
preferred
dividend requirements, the bal¬

associated
as

of July
.1

interest

construction expenditures need-

redemption after the sale'of a
new issue
of $5,000,000
4^4%
stock

with offices at

Co.

Exchange

Taxes

wages.

expenses ^

Jed to

common

preferred

Grab

formed

Treasurer.

remaining
42,361
$50 par value pre¬
stock, Were retired by

cumulative

has

Grab

Over the next five years gross

convertible

into

trude

ferred
:

stock

1944, largely be¬

increased

Richard

plant construction and extension:

during

stock during D

result of the con¬

New Broker Firm ^

refinancingi
Op¬
and taxes to¬
taled
$143,332,000, as compared
with $131,966,000
in 1944.Net
income
after
'fixed
charges
amounted to $16,430,000 in 1945,
as
compared with $15,666,000 in
1944.
The company
is looking
ahead to a period of intensive

The

•

Net

the

than in
of

erating

outstanding

common

stock.

con¬

31, 1945.

increase

company's

the

■

preferred

kwh. in 1944.

31,11945.

$36,812,000 were slightly less
than in 1944, due principally to
npnrecurring costs incident to

These

collected-

1944

cause

'reserve of $542,017 was
transferred to surplus as of Dec.

which was

system

compared

Dillon & Co.; Glenelg P. Caterer,
Lionel D. Edie & Co.;, Jacques

will

contingencies.

were

excess

aside

set

were

revenues

Co.,
1945 were $167,355,000,
$16,332,000,
or
11%

higher

com¬

1945 is due to the conversion of;

Net generation 'for the year to¬
taled
4,315,000,000
kwh,
as

Chairman, Lancaster &
Norvin Greene; Charles Tatham,
Jr., Institutional Utility Service,
Inc.; S. Logan Stirling. Eastman,

Hatcher

for

reserve

shares of

of the Laclede Power &

Greene,

Mr.

refunds in connection with

The

was#attrib¬

utable

Light;

previous years the postwar

profits taxes

Richard Grab Forms

-A

r \

tinued expansion in the volume
of business.
Operating expenses;
other than taxes, were $106,520,000. This was $12,627,000 or 13%

gency

to $52,-i

sumers

Trust Co. of Georgia
N. Y. Representative

$4,802,060

operating

increased
over

January of 1946 and the contin¬

of $3,976,-;

part of this increase

Nominating

ed offices in New York

the

94% of the total, increased $3,192,000 or .7%. A substantial

than

Lancaster

are:

amounted

I11

refunds;::

subsidiaries

its

increase

revenues'

and

tric revenues, which comprised

Committee

subsidi¬

which

pared with $2,975,531 for the year
1944.-

or 8%
over the previous
record established in 1944. Elec¬

committee,
suggestions

that

hands

Illinois

outstand-

'vv':

Southwestern Bell Telephone

$144,285 in the reserve for con¬
tingencies.; The net profit for
1945
before
Federal ; tax e s
amounted

Total

region which

OOO

the

its

1945

585,000,

are

for

consideration

and

Co.

Union Electric Power Co.

company

year term and five will be elect¬
ed for a term of two years.
•

Invited to submit

consolidation

Electric

Operating

ex¬

properties
operating com¬

major

panies—Union

continue

and

electric

system

two

into

through this coming year: Lucien
O. Hooper, W. E. Hutton &
Co.;
Oscar M. Miller, General Ameri¬
can Investors; Harold H.
Young.
Eastman, Dillon & Co. Two mem¬
bers;

all

will

indicate

completed with the

to be announced.
,f
The following members of the
present
Executive
Committee
have

full

common

;

includes St. Louis and 156 surrounding
communities, Union Electric
Co. of v Missouri in 1945 had "one of the most
eventful years in its
43-year hist0r.vV4.The system furnished more elettric service to more
homes at lower average prices than ever before. A
five*y0ar coiistruction program, involving $55 million, was initiated
to meet the
needs
of increased
uses
'which'®*1 ,., j1 ■ ■ ■' , ,'m,
. 1
\
>»■
,
1
'i

the New York Society of
Security

Analysts has appointed

..each
ihg.

Missouri Brevities

L. D. 123

Saint Louis 1,

■

MoiS- ;h

Central 82S0
L.

St. L. 499

208

located at 60 Beaver Street. Both
were

formerly partners of D. H;

TRADING MARKETS:

Silberberg & Co.

Mosinee

Equitable Securities Corp. r;
Adds Hopper to Staff
Equitable

tion,

City,
per,
come

Securities

Wall

Street,

announces

.Stix & Co.

£ lr

served

-I

York

;

509

OLIVE

with

the organi¬

with

the

Fabrics

Colonial Mills

STREET

BAUM, BgRNHEIMER CO.
StXouis I,Mo*

1016 Baltimore
Bell

f-X. j\

V* ' t

v,'

Members St. Louis Stock

Exchange

Teletype

—

Avenue, Kansas City 6, Mo.
Phone—Harrison 6432

KC 472-3
Private "Wire Connections

-|j
Strauss Bros.'
New

Shenandoah Dives Mining

Lea

Marines

in the Pacific for three years.

Western Lt. & Tel. Co.

Lucky Tiger Gold Mining

Pickering Lumber Corp.

JLong-Bell Lumber Co.

<>%

;

that J. Kirk Hop¬

zation in its sales department. Mr.

Hopper

-;..y

-v

INVESTMENT SECURITIES ~
V

Captain, U.S.M.C.R.j.has be¬
associated

... ?;
<

Corpora¬

New

> •*>-

Bowser

Paper Mills

York

and

Chica?o

To:

Peltason,Tenendum Co.
:LANDRETH

V
;

White

Company

Pledger & Company
Los

Anzeles

BUILDING

ST. LOUIS 2, MO.

Teletype—SL 436

I D. 240

CHRONICLE

THE COMMERCIAL & FINANCIAL

1506

Thursday, March 21, 1946

William Keane With Miller
'

(Special

LOS

The

liam P. Keane, Jr.
:

Chkonicle)

Politics

CALIF.—Wil¬

By ROGER! W. BABSON

vti

Though Saying That Our Poltical Situation Appears Bad, 'Mr.

Financial

ANGELES,

has become as-

sociated with Bevel Miller, &

Co.,

BabsonContends

650 South Spring. Street,,members
-

Los

the

Ex¬

Stock

Angeles

change, Mr. Keane was in the .past

of ..William Keane &t

proprietor
he

was

in Los

with Won A. Lower &..Co,

Angeles.

—

[

Comparison of Prices

Revert to

This- column has repeatedly called, to the attention of readers the
wholesome condition prevailing in the real estate bond market.
With the stock market lying dormant several points below the highs

established in December, last, the ^foUowing partial 'listipg bf'bbndS
now selling at- 85 or; better, and -the startling advances, they ^havd
made during/the past year, may be in, order.
In sortie instances}
as

readily be seen, where the bonds carry all
equity, 4hey have advanced far above: par.

can

stock

part

or a

$hat -the American People Are Sound and Will V
Conservatism, Urge$ a Coalition (of Republicans and/

offthe

Southern Democrats and .Recommends .That,, in Meantime, ;lndiyid.* t
uals Diversify Forms of Security, Such as Raising Foodstuffs, /

Stocking Canned Goods and .Having

"oju-T;. political^-

r,. ;:
.!'■■ »;
.to. be forearmed and to diversify
our
forms of security. •;I believe
pears very,
in life insurance, for instance, but
bad. My Dem¬

situation'

1-1.-45

95%.
Bauman

(Ludwig)

Broadway. Motors
Central Zone

___v

-——- -

Chanirt .Building
Chesebrough Building
Circle ( The) Theatre .1

BLOCKS OF
REAL ESTATE

WANTED

Wall

Street

and in

§onje

above

Greeley Square
Herald Square
Hotel Drake iivHotel Lexington

prevailing of¬

Hotel

fering prices for cer¬
tain
blocks
of
se¬
lected

—

Terrace

Pierrepont Hotel

Bell

Dig by 4-4950

cycle. They believe that to at¬
tempt to stop it is like trying to
"brush back the ocean with a
broom."

/'Purchases

securities

other

in 1945 by the life
insurance companies increased by
than 45%, at the same time

the

that

of the new in¬

chases

record War Bond- pur-f

were

made, by the life insur¬
companies of ..the country in

Members New York

Security Dealers 'Assn.

39 Broadway

New York 6,
HAnover 2-8970

N. Y.

Teletype NY 1-1203

made, the year's total

of'$4,509,000,000 comparing with
$3,096,000,000 in 1944* These pur-?
chases were in large part refund*
ings or replacements,.however, the
four war years as a whole the
holdings
of
such
investments
ratio has been 68%, the Institute
showing, a. decrease of 1% during
of Life Insurance reported on Feb;
the year, to an aggregate, of -.$1.9,4
27.
Last year's total purchases of
226,000,000.
;
:
U. S. .Government securities by
"the life insurance companies were M^With the change in the na¬
needs- brought
$7,769,000,000, the largest year's tion's- financing
total on record, and their holdings about by the war's end, life insur¬
of such securities increased

Trading Markets Maintained:

during

Broadway Barclay 2/56
Broadway Motors 4-6/48

will

available

greater
volume for the needs of business,

year

Institute also

funds

ance

the

.by ,$4,084,000,000 to a
new high of $20,497,000,000.
This
is 46% of their total assets.
The
the

coming

year

industry, home
As

ers.

stated1

the

even

and farm 4

owners

government's needs

conservatism as
it sometime surely will. I cannot
agree with this do-nothing philos¬
ophy. I believe we all should
fearlessly/fight Tor what is right
however

.much

we may

temporar¬

ily suffer; I believe that this coun¬
try and the entire world could be
saved from' much - grief by one

This would be for
the conservative Democrats of the
South and the conservative /Re¬
publicans of the North to combine
simple thing.

into

one

party.

It is true that our

ership is very bad.
few

la'bor

political, lead¬

This is why a

leaders are able to

American voters aye still wise

and

unselfish. ^They lack only the abil¬
ity to express thernselyes due to
the queer mix rup of both parties,
If voters were able to forget the

"Republican" and "Demo¬
crat": and could choose between

labels

would

happen.
;Once mere we would
have a safe representative govern¬
ment as the founders of our coun¬

SPECIALISTS

England 5/83

Deal"

there is no doubt as to what

Broadway 4%/58

Poll New

try planned.

Real Estate Securities

J. S. Strauss & Co.
155

T SiSinQe

In the

J92i

meantime,.it.inay be well

needs of the

Seligman, Lubetkin & Co.
Incorporated'
—

SPECIALISTS

REAL

Members- New

—

ESTATE

•

York Security Dealers Association

Brp^cl Street, New York <4

productive macbiiH

of the-country increase^ rthese
funds; of the policy holders will be
available, through investment to
ery

outstanding, service in
the .expansion, of production and

render an

HAnoyei* Z-Z100

■,

such

to grow more severe.

unions
I

to their senses.

come

especially interested in the
possibilities of home refrigeration,
am

of food

supplies.

that

sure

could be

electric power would
be turned off, I would rec¬

never

our

ommend that every

family buy :a
home-freezer and join a commun¬
associa¬
the more
depend on these home-freez¬
the more we are subject to the
cooperative

freezing

tion. On the other hand,
we

ers,

politi¬

control of labor unions and
cians. Hence,

those of
should

home-freezers

supplemented by

who

have

good supply of
*'

wish that every

have

fornia,

family could

refuge in Florida, Call/
Arizona or some other

southern state.

This would

imm^r

diately eliminate the fuel hazard
from
which
northern
cities

throughout the world are suffer^
ing today. Moreover, with a flow¬
ing well or irrigation, food can be
raised in the southern states every
month of

the year.
In fact, the
food, clothing and shelter problem
is largely solved by having a place
in a warm section of the country/
I

our

fearful

not

immediate

should "insure"
investments against the pos¬

trouble,

but

sibility that they may, for a time,
be of no use in supplying us with
food, clothing and shelter.
We
buy fire insurance when we do
not expect a fire!
Certainly, the
the

chances that your indivicl^
ual, house will burn down, Hence*

why not equally, insure for both
This does not mean that

hazards?
one

should

now

sell stocks. Money

gpod commpn stocks is prob¬
ably safer than money in the
bank.
It merely means "hope for
the
best, but prepare for the
~"v"fr";'

J. Walter

Thompson ~Co. I' f

Enlarges Wall St. Office {11
The

Wall

Street

Walter 'Thompson
mqre.

the.

than

Qffice

Company

double^ its,

space

''»>1 ft-iv

jif'

a1'?>h 'y '

5/57 W. S.

Wqll Street.

REAL

Chicago Stadium
Income

Alms"
La

Hotel

Salle

5/60

Madison
Chicago

Commodore

fIRST LA SALLE CO.

Hotel, .Inc.

Hotel Lexington,

Hotel

(V. T. C. and Land Trust Units)

STOCKS

Inc. Com.

Hotel Waldorf Astoria Corp; Com.
'

Tele. CG 660

Y. ..Hotel. Stajtler. Co.

Com.

Roosevelt Hotel NY Com.

tSavoy :Plaza Class. "A"

MP WANTED

•

POSITIONS WANTED

£■

870 Seventh Ave. Corp. Com.
/•

FOR

Hotels Static* Co. Com.'

Com.

Copies of our statistical memos will be sent on request.
Ask for ,List C21:
•
*
<*

OTHER CLASSIFIED ADS

Amott, Baker & Go.
Incorporated

So. La Salie St., Chicago 3, III.

Tel. Central 4424

EQUITY

Brunswick Site Co. Com.

"B" 4/47

Transportation Bldg., Chgo.

ESTATE

suggest special consideration at this time of Real |
Estate Equity Stocks.
Among those we believe to be par¬
ticularly interesting, are the following:

150 Broadway
Tel.

BArclayv 7-2360

SEE INSIDE BACK COVER
York 7,,N;

Teletype-NY 1-583

The telephone num-»

Jfc

has

Irving Trust Building, at No> A

SECURITIES
'..

'Favors the South

her remains unchanged.

employment"/

Hotel Sherman

use

them

canned foods."

worst."

for funds;abate somewhat, and the

EXbrook 1285

„

until most city families have
refuges, strikes will continue
They cannot
be prevented by law.
Only when,
families become
independent of
city conveniences, will the labor

over,

Let/Xis Be Prepared

Montgomery St., San Francisco 4

Tele. SF 61 &,62

policy will not
food, clothing and'shelter
when none
of these things are
available.
Hence, every large city
family, who can afford it, should
have
a
small
productive place
somewhere outside the city. More¬

bully

courts, Congress and. the people
into doing what is unjust and un¬
sound.
But the majority of tho

"New Deal" and "Anti-New

Broadway New St. 3/61
165

insurance

ally turns back to

1945 were in United States Gov-?
ernment securities and for the

LJ. GOLDWATER & CO.

believe it much
tide natur¬

and mortgages

vestments

ance

They

economic

better to wait until the

In Gov't Securities

&
Bonds

67
84;

Beaver..

More than 63 %

Stocks

•

and

social

Insurance Investments

REAL ESTATE

are

life

ity

people believe that we
in an unfortunate era of an

Many

inevitable

104

Offerings Wanted
h'u:

Sound

Park Avenue 4s.

and

American People Are

110

Wall

make these evils
really are.

261 Fifth: Avenue..

bigger than they

Sherry Netherlands
.-i.—
60 ■ Park .Place.——-

"■

magni¬

100

Textile Realty

Teletype NY 1-953

look

serves

—

Savoy Plaza

.40 EXCHANGE PL.,N.Y.

Babson

glass

fying

—

Hoxy Theatre

Member* New York Slock Exchange
Members New York Curb Exchange

^reat

•90

have

imitate) which
Roger

-€4
,

newspa-

been forced to

126%

■122

Midtown Enterprises

pers

Marcy

the

{

70%
80

commen¬

67%

87 V2

——

;
.

184 ''

—

due

radio,

tators, (which

Building

and

86 '

George-—

our pes¬

withits"news"

114

Units

85%

London

SHASKAN & CO.

;;.
!-::

They

to 5 the

the

simism is

•

worse

claim

ioo

;

Lincoln

past.

Lewis Morris

real

unlisted

85%
66 /

Lefcourt/Manhattan

securities.

estate

St.

are

110

Industrial Office Building-__L

give

say

than

102

___

instances

90
.

that con¬
ditions
really

{

93%:."/

f r-'

147

—wJ

ap-

ocratic friends

-•'

111

68:

■

...

65
73

nr w

Grant Building

above
prevailing bid prices
pay

1400 Broadway

will

_ _ ,

.80

;

_—

Apartments
Park Central Hoter-^i--^---.-Equitable Office Building-_

SECURITIES

97 Zv'

Dallas Park

92
94

BABSON PARK, FLA.--:With an 4<a(icident" for President, "old
chums" for Cabinet Officers and: a Congress looking .only for votes,
■

Market

Place-in Warm, Section to £)

Says/Common Stocks Are; Probably( Safer^

Escape ^uel Shortage*
Than Money.

COMMERCIAL & FINANCIAL

CHRONICLE'

ANNUAL STATEMENT FOR THE* YEAR* ENDED DECEMBER
31* 1945 OF
TtXACO

AND SUBSIDIARY COMPANIES
STATEMENT OF CON.SOLI DATEDIN«
Gross Operating Income:

•

Net sales (seeNote I
Miscellaneous

(Excluding European Subsidiaries)

0>lK A< 4 or.vr

•

STATEMENT OF

•

Y .$556,347,620.07
:*•;Y

..........

CONSOLIDATED EARNED SURPLUS ACCOUNT

20,729.616-31

1577,077.236.38

Operating Charges:

Earned Surplus, December 31, 1944

Costs, operating :sefl«nt and "ieneal
penses (see Note I)
(other'than

Federal

$420,001,890.91

i5,715,7-14.24

..........

■Taxes

;■

V-.;v>'

income taxes)

Intangible development costs (see Note 2.) "24,762,584.2}
Depreciation, (including $17,358,002.3?
for amortization of'war emergency facili-/
' •.
ties*i-see,Note 3)
V.V/ 44.102,917.40
Depletion and leases surrendered ......V
.8,274,096.90

Net Profit for the Year Ended

December 31, 1945

•„

•

.....

51,856,928.25

......

'•?? .y

Y/.V:•' w'Y:j,
'Income from operations

11.!.

-j

■

•*

■

512,857,20.3.68

Non-Operating Income (.Net): Interest, dividend,/ patent and - other

*v *rv

$267,244,296.36

■

<54,^20,032.7(^

-;>

DEDUCT—Dividends declared during 1945.♦

v' »'i

28,111,650.00

less

come,

' '7

•:

to*

Xr- \

Earned Surplus, December 31, 1945 (see

miscellaneous

charges of
•
..........,,....6,762,830.20

11,047,771.62

Interest Charges:
^.
v , ■
-Interest and amortization of discount and
!'■■■
expense oa funded debt
.'.Is
Other interest charges

fi.v.

* (

*. it

Not« 6)

3.010.377.72
1,115,556.93

Provision for Federal Income Taxes
(Based on income before adjustment for
accelerated amortization of war
emergency

facilities.—see Now J).
Net Profit Before Provision for Con¬
tingencies (see Note 4)
..........

'•■

■

STATEMENT OF

Provision for Reserve for Contingen-

Arising OUt

cies

•

Note 5)

Net.Profit Carried
/

Account

-War

the

( See

.-j.'.

Earned Surplus

In addition, state and federal gasoline and oil taxes were

taxing authorities in the

Surplus.

caimtal

.........

of $115,766;015.53:

amount

'\.~v

31, 1944 and

to
*

,#Y-.

jU- >,?•-

December

ft 77,669,213.33

paid (or accrued)

r-'

CONSOLIDATED BALANCE SHEET
-* •

;

•.

•

ASSETS

LIABILITIES

Current Assets:

Cash—. <«

Current Liabilities:

fw;./

Construction advances payable to U. S. Gov.

."fin United States
In foreign! countries

$ 84,095.513,56

:^,.Y
* 88,459,848.11

14,364,334.55

ieirnment,
:

>'•

(sen-page- 4. ojt report to, stock.'
IX

holders.)./.

Other

U. S. Government short-term securities,

notes

•■"V-7,-p-.l'-

'fc'

'-t'V•

•

and

payable (includ-

contracts

•v

«»t

Notes

■-

ing (1,071,048.00 due, in

Notes and

receivable,

Accounts receivable

Accounts

v'l'.7:.

...

.t ^.348,164.74.:^7'^
36,739.958:95 7 ,

.....,

payable

* v;

Provision for Federal income

37,088.123.69

lass—Reserve for bad debts

Total

V--"--' ! •
1 36,438.123.69
Accounts and-,claims receivable from 7yv
; j. U. S. Government (see page 3 of
Hi '
report to stockholders)
8,124,298.06
'■! 1

■

..naxioo

intercompany, and

departmental

profits)

which

inter-

•

the

\:'-t '■&'-

•

aggregatf was lower than market . i'V^ $ 81,069.981-48
Materials and supplies, at cost
I,.. .• : 16,278,896.70

current

....J

assets

•

■

•

Mortgage

payable

notes,

97,348.878.18

(/■■>•

$266,858,705.69

Special" Deposits for Replacement of
Properties Under Agreements vith
Certain U.

Construction

advances

payable

Government,

•

<Y. .i 40,000,000.00
S.

mentcol *$979/408.00^.in, cpnnectioa
Rrith purchase of tankers

Total

60,000,000.00
r

' Maritime Commisiion b anhual Jnstall»;.f^.'^n-/

41680,411.13

lll244.660.00

3% Debentures, due May 15; 1965ft

•

i% Debentures, duO April 1. 1959

chandise, at. cost determined on the
>*;first-in, first-out method (after elimi-"

■>

/>'

liabilities

-currant

Long-Term Debt:

V V

Crude and refined oil products and mer- '**'-*

,,/.

44,562,421.75

Inventories—j/r7> 'vC
t*

4/. :.;

taxes

Pividend payable jimuarr 2.1946

'•

it'fy-A-<;.$ *..7 <'7-'7,, 'i

23.W2,623.27

630,000.00"

26.897.685.43

v..

.........

Accrued:liabilities^. .v'.v'......

1946 oh
31663.093.32

receivable—

accounts

/
;

11,986,196.00

-V

1,956,406.19

Other long-term debt

556,303.71

114,498,905.90

•

t"'

V- 'uj. ,11 ^ ^

',x\

•

Long-Term

"v-

•

<■

•

Receivables

■*

•

Deferred Income and Suspense Credits

?
of

L-

reserve

7-7 7

10.675,122.21

^ v tv(Less

|S.. GovernmenTi ACe^Icies

1,008,111.57

$250,000.00} ..,.:77r....7.7......

2,994,947.77
■

pean

less

and

Subsidiaries

reserve

Advances
not

Euro-

,,.

reserves

Consolidated,

6,759,960.98

Advances

and

are

Com¬

Foreign Coun¬

not

For
•

Cost, less

rent

Subsidiaries—

reserve

of $26,300,000.00

"(geeNock?).1

;i:.,,.k

For

107,361,890.59

cur-

liabilities above

foreign exchange fluctuations (sec

and

panies

Operating

States,

which

♦

—at

'"'c

'■

cost, less"

Properties,
at

•

Advances

2,139,851.14

contingencies arising

out

of the

war

Cost:

are

Subsidiaries

-i

of $1,300,000.00

31,553,712.63
Capital Stock

Plant and Equipment
! * ;-v........fy.f

—

Lands, leases,; wells and equipment (see ! "
'» Note 2> v..;
,i >.;.;. ^7^77-^4l6,601,$99.6*
Oil pipe lines; end tank fgjtms
72,601.129 87
Refinerie% an4 »erminals
248,801,917.79

Surplus: :

Authorized-I4,00p ,000 shares,

Issued 12,058,789 shaiks
Lc^s—Held

....

and

Capital stock,'par value $25,00-—

■

,/Sbips and mafinc: equipment 7. .\. 56,360,057.39'
t:.,• W1 ^*1^ MRtions, ifaciiitics and e^ipm«n( i'7;t Jl02,438.098.95
^

/.,

treasury,

{
... ..

814,129

..$301,469,725.00"

-J'.cshares,"at pat'value.20353,225.00,

Miscellaneous

,
.

;

7,000,000.00

c-r

,fl*

Y..Y

United

the

not

reserve

»«./•''-»

•

rt<pn^-., 'if /k,

;

,'i„ ,P. Outstaqdihg tL244^60shares

3,171,527.48

-»;■

/"wtlon^U,7>7,406.89)

»,,r ,'iu

7$7,&0.Q9^

Contingent
./

Deperrbd Charges:

insurance and

Prilling

costs on

taxes

V.$

1,737,121.44

,{.

-3,782,781.^9

......

incompleteweUs.

•

Other prepaid expenses and deferred
charges

|
f

2,554.462.02

8,074,365.45.

Liabilities

—

Reference

made to,Notes 4 and 7 with, respect

to cet-

tain, contingent liabilities. In the opinionof "the

u"''*,

Company's General Counsel other

contingent liabilities
pottant

in. telation

are not

to.

gota)

materially imassets.

-77-

$833,853,649.87!
—

—

The

.foregoing balance sheet and statements are taken from the annuat report, dated March 18, 1946, to stockholders of The Texas
Company, and should be read in conjunction with such report which contains the Notes to Consolidated Financial Statements and

the

certificate of "Messrs.

Arthur Andersen & Co..'Auditors, attached to such financial
statements.
A copy of the report to stock¬
be- had ' upon, application tq the Company, The said balance sheer, statements, and
report arc not intended to.
offer, solicitation of offer, representation, notice, advertisement, or
any form of a prospectus in respect of any security of
The Texas'Company.
:';v
'>•.>
/v;;'Y^-'Yv
holders

,■

may.

-constitute

77,669,21333

Earned surplus (seeNote6)v.,239432,646.36

Total ..................$899,974,631.09

$28L,«6,300:0^

Capital surplus

?tos-H-ReaMlves for depreciation^'amort]}- -: ^'';
T zationand depletion .Ui.\501487306.63
398,787,324.46.
'.?!:V"I.,'.
Patents—at Cost. (Less reserve foi amorti-* '
"
!
" '£*

,.,,

19,000,000.00

For other contingencies

Com-

11,761,753-70

■

(see Note 5)

Investments in

employes'- plans—ex¬

-Note 7)

■«-

i
under

cluding $1,590,000.00 included in
.....

Operating

tries, which

by the Board of

For benefits

r•

Investments in

(As authorized

Directors)

of $5,300,000.00 (seeNote
7)

i
panies

V
Investments in

>>'v

597,918.359.69

v:/

1508

Result of Treasury
Bill Offering
The

Secretary

tenders for

of the Treasury

March

By JOnN T. CHIPPENDALE, JR. ' ^

that the

$1,300,000,000

there¬

about of 91-day; Treasury "hills to
be dated March 21 and to mature
June

20, which were offered on

opened at the Fed¬
eral Reserve Banks on March 18.
Total applied for $2,074,7169,000.
Total
accepted,
$1,315,311,000
(includes $49,839,000 entered on a
fixed price baSisat 99.905 and ac¬
March 15, were

full);3g§

cepted in

Average price, 99.905+; equiv¬
alent

rate

discount

rection.:... From

the

way

market

acts,

though
it will await clarification of recent developments, particularly the
effects of the debt-retirement operation, before it m(oyes very decid¬
edly in either direction.
The announcement that the Treasury
would continue to pay off more of the debt, out of cash resources;
had only a very minor effect on the market, with slight betterment
taking place Jn the intermediate and long bank eligibles, and the
restricted obligations.
.

seems

competitive

There seems to be little doubt that the Government bond

Central Banks.

High, 99.910, equivalent rate of
approximately
0.356%

Indications

...

are

that although the Treasury

and the Federal Reserve System do not see/ eye to eye on policy

discount

with reference

per annum.

not

Low, 99.905; equivalent rate of

to the

that

believed

trend of

these

short-term

two monetary

interest rates, it is

authorities

apart for agreement on this important matter.

0.376%

are

too

far

It is evident that Federal is in favor of an upward trend in short-

per annum.

(59% of the amount bid for at
the low

price was accepted.)
There was a maturity of a sim¬
ilar/issue of bills on March 21 in

term

rates so that bank funds seeking

money

investment will not

almost exclusively in long-term eligible obligations.

be put

rates

indefinitely, along with a scarcity of offerings, has carried prices
eligible obligations to all-time highs and yields under
2.00%;-W-', As a result the differential in yield between long-term
and short-term obligations has narrowed to a point where a further
decline from these levels in the yield of ldng-term securities might

(Special to The Financial Chronicle!

MINNEAPOLIS,
sociated with M. H.
523

have an adverse,effect on. our

MINN. —Ro¬

maine R, Reichert has become

financial .system^ +

authorities that
structure should he brought
about by a firming of short-term rates rather thanthrough a * j
further depression of the long-term rate of interest . . ♦
it is believed by

Therefore,

as¬

Bishop & Co.,

Marquette Avenue. Mr. Reich¬

Central Bank

the interest rate

revision

any

about
Jones Gene raj Agency.
Prior by the Central Banks, not replacing reserves of member banks that
will be lost during the refunding operation. . .... Also by not sup¬
thereto he conducted his own in¬
plying the member banks with funds, to be used to meet additional
vestment business in Minneapolis reserve
requirements as deposits are shifted from the Government
under the name of R. R. Reichert to individuals and others.
The return flow of currency and
•Co.r gold could be offset by the sale of Federal-held Government sfeburi*
ert was

firming of short-term interest rates could be brought

formerly with the Geo. C.

...

ties.

"--J-* "v."

•

OTHER AVENUES
U-\

Likewise Federal is in favor of eliminating the

EQUIPMENT

count rate, so

differential dis¬

that borrowing at low rates on short-term obligations

proceeds reinvested in long-term issues would be termi¬
Also by letting Treasury bills find their :own levels, the
Central Banks could tighten short-term rates since, if it were not
for the pegged buying rate of % % set by Federal, this obligation
would sell .on a higher yield basis. . • ♦
nated.

CERTIFICATES

...

which the Federal Reserve* Banks
could firm up short-term interest rates, and in that way attract
funds into< the shorter-term obligations because of the higher
There are many ways in

Offerings Wanted
firm

bids

practically all issues.

be¬

mittee

prevent delays and
with

which

"3. Fixing prices on thf basis of
OPA's theoretical estimates of fu¬

Wason

various

ture

JGladly

furnished

upon

request.

Semi-Annual
Valuation and

Appraisal

Complete dollar appraisal
issued each June 30 and

one-year

with

experience and facilat your disposal.

Dec. 15,

1952/54.

It most

certainly

though a deposit bank would be
much more attracted to a one-year obligation that yields 0.875%
and which carries no premium, rather than a security that gives
only a slightly higher return, with a much longer maturity, and 5
at the same time selling at a very substantial
premium...,
;
seems as

It seems also thaf a stiffening of short-term rates, which would
bring about higher yields for Certificates of Indebtedness, will re¬

STROUDSCOMPANY

lieve the demand for the intermediate-term bank

+ +"■

banks

; INCORPORATED
PHILADELPHIA

;

should
are

in most

Pennypacker 7330

eligible issues. ;+ .
commercial

putting to work

now

in the market

instances, do not-have to draw the! large rate of return that
'
...

wages,

Two

s,_

private

Philadelphia,

wires—:
New

York

rates? v

sorb

OPA that ronly

prevent an inflation and collapse?
such as followed World War I was
also' attacked by Mr. Wason.
;v

from 54%
12% on

of 1919-20 was

enormously increased for ei gn
buying in our markets, limited!
expansion of productive capacity/
and lack of information on avail¬
able supplies and current produc¬
tion .v.
which caused: wide+
.

spread fear of

shortages.

"Clearly, therefore, we have no
reason to assume that the pattern

World War I will

of events after

repeated.

caused,"
"byypeoploj

"Runaway inflation is
Mr. Wason explained,

the fu¬
savings*
and rushing to convert them into?
goods
no matter what prifce
becoming frightened over

ture value of

their 'liquid

they have to pay.
things

"Three

may

bring this

disaster about:

"People may get frightened be*?
of
government financial ]

cause

no.

excess

"People may get frightened be-|
continuing and growing^
shortages of goods.
(Conversely,:
unless the government iS printing f

profits."
such

thing

cause' of

production to *abr

buying powers'," he

turers are

Wason

let out some of

•

verge

propaganda

scare.

statements

* •

•

going ]

that prices are

is on the ;
inflation . I-j

that the nation

of a disastrous

summarised,,, fouru etc.," he told the committee.
these obligations before the demand

high prices disappear.

time

"People may

cause :

to get arduhd'the1

Stupidity of OPA.".
Mr.

avalanche of;
confidence in
their money^) |
get frightened be¬

rising

goods gives people
the future value of

buying out other newer /

and new prices

money,

firmsj in *<Jrd^f ^tb>?Mariufactu^e
oldy2prdductisi.'under • newqhmnes

•.
The direct
change in rates would probable be very minor on
these holders.
Nevertheless, indirectly it might have quite an
effect, since non-bank holders of eligible issues might be inclined to

that the inflation
brought about by

declared

added.';•' !
! Mr;? Wasorv siatell mat manufac¬

There will

eventually be

;

new money

ligations for ultimate investors, and
bank investors may deem it

"dealers," have sizeable positions in these securities.

effect of such

Teletype—PHLA 296 & 297

having enough

by a stiffening of shortInsurance companies and savings banks are small
holders of short-term obligations, although other investors, including
term

inflation,"

concluded.

argument ;advanqed ; by
price controls can

The

offered data regard¬

interest or

"There

Would non-bank investors be affected

2-6528-29

greater danger of

policies. (Continued large deficits
however/ because "every dollar are likely to have this effect . « */{
of production which is sold cre¬
starting; the money printing press?
ates a dollar of 'buying power in is almost certain to do so.)
;j ;;

NEW YORK CITY

Ilfccior

Mr. Wason

■

NON-BANK INVESTORS

"Clearly, therefore, continua¬
tion of OPA means limited prd-duction
continued shortages;

increases in prices of
classes of commodities.

monies which;

are new

to get all-out pro¬

centive to try

duction.

This record of

in mind that, the funds which the

needed in the past.

was
■

be borne

of sales, destroys the in¬

volume

metals.

one-third years, < the 2s due June 15, 1949/51, an income of 0.98%
for a four-year security, the 2s due March 15,
1950452, and a yield
of 1.23% for a bond due in six years and nine months, the 2s due

Monthly or Special
Appraisal

obligation, to yield 0.875%. .
This yield would compare
of 0.89% for an obligation due in about three and

profits uponj

wor^h, instead of upon the

net

return

profits 25% below;

"4, Holding

1936-39 arid figuring

the market place.

yield 0.875%, in the near future. . . . What will be the effect of this
minor firming of short-term rates on the Governfnent securities
markets?
.It would mean that the commercial banks could buy

December 31.

»•

dependent
upon the accuracy iof OPA guesses,
instead of upon the realities bf

present inflation^
he cautioned, does hot include the
yield that would be obtainable in this security. ...
rise of prices which has been and
bei made under the new
It is indicated that the Central Bank authorities would like to will
wage-price formula.
The added
have Certificates of Indebtedness selling to yield from 1% to 11/s%;
prices will average between 5 and
while the powers that be in the Treasury favor a yield of %% or
10%.
By having driven low% % for these securities.
.
. While the demands of the Treasury are
priced goods off the? market,! Mr;
always met, there is considerable support for the belief that a com¬
Wason stated, the OPA has forced
promise has been reached in this situation. ...
American consumers to pay high¬
er prices and to look to the black
NO IMMEDIATE CHANGE
It is indicated that for the time being there will be no change in market for goods. In addition, he
maintained that there is a hidden
the coupon rate of the certificates, although it is believed that this
inflation in Government subsidies
security will not continue to sell at a premium above! 100 in the not
too distant future.
This would not result in any increase in the which adds to the price of food
alone an additional 8%,
cost of the debt service, since the coupon rate on which the Treasury^
Mr. Wason refuted the OPA>
makes .debt, payments would remain the same. . . j The premium
above the issue price does not do the Treasury any good.... It would argument that price controls must
be
continued until production
not. result in/ increasing bank earnings. .
catches up with demand, though
admitting this is a "most plausi¬
EXAMPLE:;S'
|
V'
ble" argument. It does not hold,
Let us assume, that Certificates of Indebtedness, sell at 100 to
.

established facts

make production

will

markets."

figure ranged
foodstuffs down

costs

and

production

rather than

of compe¬

fair—the price control

The

wilt

unbalance.
R.

Robcrt

i...,J|,,,v
placards in support of his argu¬
ments.
Mr.
Wason, maintained
that the OPA was causing infla¬
tion
by hampering production.
"It is the considered opinion of
our group," Mr. Wason asserted,
"that the greatest handicap to allout production is the policies ol
the OPA," and he added that "the
kind of price control that will get
maximum production; the kind ol
price
control
that has made
America great, and the only kind
thfit can keep America great, is
the kind of price control that
compels producers to give the
American
housewife what /; she
Wants: at a price that she thinks is

the

un¬

points of

always create still more

of
charts and

Mr. Wason

./4

most profitable V

are

attempts to correct this
balance by price adjustments
and

series

ing

because

balance,

naturally concen¬
on; turning out those goods!

trate

tition in free

out

producers wil t

1 a borate

prices too high,
low—production will!

too

remain

OPA,

Bowles,

"2. With some

or emun

confusion

prices too high, others

some

others

miltee,in imi¬
tio

too low.

the Com-

^ J

businesses to.

regulate and 8,000,000 prices to
police, it is not possible to

Banking and
Currency and
pre sen ted to
to

pro¬

set and

Com¬

House

OPA hinders

why

"1. With 3,000,000

Weekly List

campaign against the

duction: ;

the

before

with the

TRUST

Immediate

the; OP A

reasons

Chester

of long-term

Bishop & Co.

t ension

<t>-

yond June 30,;
the present
e x p i r a t ion
date, appeared
on
March 18

low

M. H.

e x

;

Association of Manufac¬

Robert Wason, President of the National

turers, which has been carrying on a vigorous

THE MARKET

the amount of $1,316,513,000.

Support Claim That Price Controls Are
Hampering Production.

mittee to

tation

Confidence in the ability of the Government to keep interest

Romaine Reichert With

Other Data to House Banking and Currency

market Is notv at the crossroads, with the future trend depend¬
ent upon the open market operations to be carried out by the

approximately

Charts and;
Com¬

Its President, Robert Wason, Presents
changes are still in Vogue in the Government securi¬
Although prices are just under their all-time highs,
activity has been too light to indicate a definite trend in either di¬

bids:

discount

Aiguments ioi End

010PA

.Minor price

Range of accepted

^ "

ties markets

approxi¬

mately 0.375% per annum.

NAM Presents

ffOur Reporter on Governments"
.

announced

"Thursday, March 21, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

issues of

\
long-term ob-v +

this could mean that

advisable to sell some of

•eligible bonds, and take down the sizeable

'.have accruing

and present all- j

these issues.

non-! ;

their banki

premiums that they; )
be rein-- .;

The proceeds could

vested in restricted bonis or short-terms

hnnrK

that,

meet their needs.

...

pending new offerings: +
-

THE COMMERCIAL & FINANCIAL CHRONICLE

Committee Formed to Study Public
Work

to Be

B. U.

Ratchford, Professor of Eco
nomics,
Duke University, Dur¬
ham/N. C.; Earl B. Schwulst, Ex¬
ecutive
Vice-President ; of
the
Bowery Savings Bank, New York
City; G. Willard Smith, President

Debt Policy

Financed by 1(100,000 Grant From Falk Foundation.

Committee Comprising Business, Financial and Academic Leaders,
Will Study Implications of National Debt on Common Welfare,
Will Maintain Regular Staff and Issue Periodic Reports and

Recommendations! *

newly-formed

Mini

Committee on
Public Debt

First

President of the
of Chicago;
Douglas, President of
Bank

committee, to

the Mutual Life Insurance Co.

the

■

Lewis

be financed by

New

Falk

/'f

dolph

the

Bur¬

National

Own Firm in Texas

National

SAN

Allison has formed M. E. Allison

Milam

ings Bank, Burlington, Vt.; A. L.
l\/r
m7 Wiggins,
and
businessman
banker, of Hartsville, S. C.
trr:

■

the

include: Prof. C. C.

committee

Research

Mitchell; Professor Emeritus of

The

bonds.

O'Leary, formerly of
University, Middletown,

Wesley an

Harvard
University;
Sherwin Badger, Financial Secre¬
tary of the New England Mutual
Life Insurance Co.; Prof. B. H.
Beckhart,
Columbia. .University
of

with offices

will specialize in Texas

Abbott, Grad¬ Conn.

istration,

Director

Inc.,

Building.

James

Mr. Allison

son-Davidson

"The

study.

committee

will

Company, Inc.

Corp
Opens in New York City
Western

Now Green, Erb & Co.

Development Corpora¬

CLEVELAND,

tion has been formed with offices
at 120 Wall Street, to
engage in

the

Chase National Bank; Prof. Jules

the investment business.

Bogen, New York University and
editor of the New York Journal of

porate

Officers

name

Green, Wolfe &

Co., N.B.C. Building, members of

Stephane Leyen, President;
Serge Landau, Vice-President and
Secretary;
and
Manuel Radies,

the

Treasurer and Assistant Secretary.
Mr. Radies in the past was in the

Co.y Incorporated.

are

Commerce; S. M. Foster, EconorriInsurance Co.; Prof. Marcus Nad-

OHIO—An¬

nouncement is made that the cor¬

Cleveland

Stock

men

prominent in

Partners in the

trading department of J. Ballay &

firm

Co.; Inc.

L. Erb, and William M. Green.

Albert B. Green, Robert

are

•'*V'-,y

VT »:'**•■•

•'•*

«'•'

AND SUBSIDIARY COMPANY
0r?t.1 r A

k,f

i1','.

'0 0

7«XV it

„

full-time staff will be

....

maintained with • offices in the
Mutual Life Building, 34 Nassau

•

ASSETS

be similar, to* the

will

Cash

United

study

tax study

• ■

•.

;..

101,910.85

...............

market)

djtioii

mittee

(lower

^lue)

less)•

cost

propriate

mendations.'

1,483,188.43

>69,504.1?

ADVANCES

8S6,S7l$?

Cash value of insurance
XX'X X officer
excess

;

tary.
-

life of

profits tax

•

67,028.53.

57,971.47

lY\% Sinking Fund Debentures Due

342,231.36

.........i.
'•

1959
Less

one

....

300,000.00

6,000,000.00

RESERVE FOR CONTINGENCIES.,

39,939.15
28,987.25

68,926.40!

Common Capital Stock—Without nom¬
inal

par

value

* »

Shares
Authorized

—Reserves for depreciation and

16,013,357.64

Prepaid insurance, taxes and rentals.-

$29,463,473.57

depletion

13,450,115.9|

1.000.000

Issued and outstanding

435,107

7,581,928.79'

Reserved for issue.688

27,503.60

435,795

$ 7,609,432.39

($2,271,720.69 is not
dividend distribution).

5,208,804.85

159,609.79

Patent licenses—Being amortized....

Total

37,781.76

Unamortized debt

11,743.67

expense..........

t/Other deferred charges

200,000.00

CAPITAL STOCK AND SURPLUS:

FIXED ASSETS:
.

'0'Kts;-i't'f t

through sinking fund payment
included in current liabilities

ADVANCES:

Property, plant and equipment (cost)

:•/'>.

-—Bonds to be retired within

year

Other investments and advances

;

(pet)

LONG-TERM DEBT :

139/422.61

(cost)

Leas

125,000.00

re¬

Security investments

202,808.75

CASH IN BANKS—UNITED STATES
GOVERNMENT FUNDS....

•

$ 3,014,485.17

GOVERN¬
...........

bursement has pot beep received

../.',

INVESTMENTS AND

300,000.00

•

Earned surplus

16,274.11

225,409.33;

available for

$22,099,750.94

'Total .1

12,818,237.24
$22,099,750.94

NOTES: Disbursements of funds advanced by the United States
Government are subject to audit and review by government agencies.
Company is contingently liable- as guarantor for the payment of 5% of the
prindpal,- and interest thereon, of the promissory notes
Five Pipe Line Corporation, dated December 15, 1942, and; due in
equal amounts on December 15,
■

Liori Oil

of Project
1946, and December 15, 1947; The contingent
liability of the Company at December 31, 1945, was $72,000.00 for principal and
$60.00 for accrued interest.
;
Under the terms of the indenture securing the 3%% Sinking Fund Debentures due
1959, $2,271,720.69 of the consolidated earned surplus at Decern*
«ber 31, 1945, is not available for dividend distribution.
rrt-^X
,

CONDENSED CONSOLIDATED EARNINGS STATEMENT
For

theyear/s ended December 31st:

Insurance Co.;

■

'00 ■ '■'X- K

000

of the commit¬
follows: Gen/Leonard

Other members

tee

UNDER

MENT CONTRACTS

;

will serve as
vice-chairman of the committee,
and
Donald B._ Woodward, re¬
search assistant to the President
of the Mutual Life Insurance Co.
of New York, will serve as secre¬
Life

2,835,718.2?

Leef—Disbursements for which reim¬

888,595.30

20,109.88

Total Current Liabilities

or con-

.......... ....,,

John
S. -Sinclair/?.'- Executive
Vice-President of the New York

;

741,116.29

Funded debt sinking fund payment due
'H "Vrithin one year.
/, . .

Total Current Assets........

operations, Mr.

571,618.00

Total

formulation of apand clear-cut recom-

•

assets:

j .United States
fund bonds

result in .the

Savings

1,455,252.71

426,152.30

.Other current

under way.

•

Tax

y " Notes
(redemp;
tion value) ....,

■

DEFERRED CHARGES:

represented on, the com¬
and among its advisors and

127,369.13
•

Interest

Materials and supplies (cost

members of the
committee and their staff and advisors will be held two or three
times a month during the next
several months while its work is

'■

WX-0&Xf
■■

reviewed by the

of view

$
$1,312,734.29

ury

$ 1,557,163.56

.v.V-

Refined oil products; (market

committee.

This method of

1,807,924.8?

liabilities:

Taxes

and

Burgess said; is intended to bring
to bear the many varying points

17,965.00

....

payable

''V" V

~sv

i.L/Merchandise

American-economy.
The implications of the debt to
prices, to the purchasing power
of money and savings, its effects
upon economic incentives and the
policy as to interest rates, float¬
ing debt and debt retirement will
be given special attention, In ad¬
dition; the interrelationship of the

Meetings

,nr.

•

......

relation to the

and

.-V;

Payrolls

Inventories:
0 Crude oil (market)...*

personnel

Accrued

1,394,373.02

accounts

gathered together
The com¬
mittee will explore various as¬
pects of the public debt and: its

116,913.90

Reserve for doubtful notes and

to pub¬

financial institutions
such as savings banks, commer¬
cial banks, life insurance com¬
panies and trust funds will be
probed by experienced research

v, ;

L©s»—U. S. Treas-

lish its study of this problem and
its recommendations in a series of
short, simply written pamphlets,
for wide circulation, which will

debt

Note payable
Accounts

Total

into a bound volume.

,;r 1(52,790.54

.......

inquiry and expression,

eventually

$ 3,538,154.49

(redemption

Trade notes and accounts receivable.

responsibil?
ity for the statements or views
expressed by the committee, and
the committee has full freedom of

securities

'.v.-.y. ,V»

Other notes and accounts receivable.

dation will assume no

The committee proposes

States

Notes and accounts receivable:

published under the caption "A
Solvent Amer¬
ica," which was also financed by
the Falk Foundation. The Foun¬

hand arid in banks; .i;..,

value)

Tax Program for a

LIABILITIES
CURRENT LIABILITIES:
'

CURRENT ASSETS:

their consultants will participate
in preparation of reports.
The general pattern of the

•

CONSOLIDATED BALANCE SHEET—DECEMBER
31* 1945

Street, New York.
In addition,
members of the committee ana

El Dorado, Arkansas

•

rience.

are

Ayres, Vice-President, Cleve¬
land Trust Co., Cleveland, Ohio;

Daniel

W. Bell,

American

President of the

Security Trust Co, of

Amount
00 m'-\

Net profit before capital extinguishments and

taxes

Provision for capital extinguishments..,
^,V:.
Provision for Federal and State taxes on income.
Net income after all
charges;«.«,......«♦..,
♦Based

income.

-■

•

Per Share*

3,649,854.59
«..

$12.27

$5,715,998.37

8.39

3,015,690.75

.04

1,235,638.00

3.84

1,464,669.62

'16,879.00

1,670,689.11

Per Share*

Amount

'-A

$5,337,422.70

.vV....
..........,...,;

435,107 shares of Common Stock in 1945 and 435,105 in 1944.
j

NOTE:

$13.14
6.93
: /

3.37

■

A part of the

2.84
.

srtA'VV•'*r.-v-;.

A A,'-

...

"'V-

income of Lion Oil Company for the years 1943, 1944 and
1945, and all the income of the subsidiary company for the year 1945 was
subject to renegotiation under the provisions of Sec. 403 of the Sixth
Supplemental National Defense Act as Amended.. It is not
expected that the adjustments, if any, will have a material effect
upon the Consolidated Net Income or earned surplus of the Companies.
from contracts which

are

Exchange,

has been changed to
Green, Erb &

LION OIL COMPANY

com¬

life
insurance, commercial banks, sav¬
ings; banks, business and universi¬
ties.
It will have as consultants
.and research workers a group of
economists both from universities
and from fields oL practical expe¬
posed

formerly

Western Development

chair¬

000 for the

the

firm

municipal

was

Foundation has contributed $100,~
'

new

San Antonio manager for the Ran-

School of Business Admin¬

uate

Co.,

Consultants

and

Bank of Manhattan Company. The
Director
of
Research
is
Prof.

Thb Falk

man.

ANTONIO, TEX.—M.

ill

The

Bank of Manhattan
Company, and
Arthur P. L. Turner, Jr., of The

Economics, Columbia University; ler, Graduate School of Business

City Bank of
New York,

England Mutual Life

Wisconsin, Madison, Wis.; Wesley ic Advisor of the New York Life

•

serve as

Folsom,

Corp., New
York City; Harold M. Groves, Pro¬
fessor of Economics, University of

gess, ViceChairman
o f
'

of the General Foods

March

18 by W. Ran-

;

Marion

Co., Rochester, N. Y.; Robert L.
Garner, Financial Vice-President

announc¬
on

York;

Treasurer of the Eastman Kodak

0 F o u n dation,
viM of Pittsburgh,
was

Vice-President

Co.; Levi B. Smith,
President of the Burlington Sav¬

Brown,

National

M. E. Allison Forms

President, Bankers Trust
Company;
George
B,
Roberts,
-

City Bank of New York; Murray
Shields, Vice-President of The

of the New

&
Washington, D. C., and former
Under-Secretary of the Treasury;
E;

policy. The

Vice

Insurance

The management of the 275 million dollar national debt and its
effect on the common welfare will be the subject of an extensive
research; by

Administration, New'" York Uni¬
versity; Roy L. Reierson, Assistant

;

Thursday, March 21,! 1946

FINAf^ClAi CHRONICLE

COMMERCIAL &

THE
1510

Bretton

Stocks

Bank and Insurance

Soviet

A'. •! VAN-i)EUSEN;

•—Bank Stocks
What's the matter with bank stocks? Since the lows of 1932
they have persistently lagged, behind the general market. Yet the
banks, over many years, have experienced a sustained growth in book
This Week

accompanied by an improvement in net
operating profits, ^exclusive of- security profits and recoveries from
items written down during the 1929-32 collapse. The record is worthy
of examination and study.i" '
" ** trial Average. In each of the
—
L

♦

;

J i

consider their mar¬
since 1932, as

First, let us
ket

with.
composite in¬

193546—

direct per

general"

IndusBank Stocks

thus giving! a
cent relationship with

the 1932 lows as a
*

402 Stocks

256.2
98.2
' 213.3
211.1

High

1942 LOW

______

1945 High
1946 High

—

industrials'

(Index 41.22)
100

100

407.6

1937

base.

Dow-Jones

(Index 34.3)

(Index 100 '
60:3)

1932 Low

numbers

index

similarly adj usted,

the Dow-Jones

stocks and

has

^subsequent

and

compared

industrial and

402

dex of

of New

Poor's

Standard &

1932

& Poor's
York City

by Standard

weekly index
bank
stocks,

indices, the low index of
been converted to 100,

three

performance

measured

\-;.£ &471#

■ •,

177.3

225.4

409.0

-475.-1' 'i:
502.1

434.1

which program

Independence of the

of the Soviet
devoted to the
development of a collective econ¬
omy independent of the rest of
the world. The development" arid
use
Of the monopoly of foreign
trade is; explained chiefly by the
fact; that u "relatively free" trade
between Soviet citizens with. ;ci^
izens
of
other. nations v; would
hamper' and check the planned
development of the Russian col¬
lectivism. The international trade
of Soviet Russia had to be strictly
^controlled by the state.
Exprirt
from and imports into Soviet Rus¬

required large ex¬

1933--_„_—$22,538,672,600
27,050,141,000 - '

Dow-Jones ' Industrials
their 1932 levels.
28,700,893,000, / ,
33,778,543,000
Many
vicissitudes v beset the
I937u.
36:424.614:000 V 4
banks during the thirties. An epi¬
1938
37,164.740,000 «
demic of bank failures over the
4939x--_^—_____
40,439,532,000
194042,967,531,000
country culminated in the "Bank
1941;
; *48,961,444^300 Holiday"; after this, the improvi¬
sations of the New Deal followed
Thus, between 1932 and six
each other in quick succession;
months • before Pearl Harbpr, the
gold was revalued, interest rates debt expanded by nearly $30,and. the

125.4% above

•

■

anti-business apd

declined, and an

anti-profit political

_____

000,000,000,* equivalent to; approxi¬

complex waiji

Collective

Economy

efforts

the

All

chief

are:

sale and retail markets and of ex¬ ally was..On June.il, 1942.a Mas-:
port and import prices.: ' i,
:'U* ter - LendrLease: * Agreement :w"as
:
For reasons of their own, Soviet signed between the United; States
authorities have never disclosed and the U.S.SJEt. which,: in article
any/information on these 4actor$; VII,* states that both nations will £
andwhether this will; be done at agree "to; the elimination of -all

years.

that The recovery
penditures of money, and which
stocks since 1932 has been the
Administration
borrowed
considerably less than has been
largely from the banking system.
the recovery of the general stock
The -national debt mounted; defi¬
market. Specifically, their recov¬
cits-financing, after Lord Keyiie£,
ery has been 48.5% of that of the
was" enthroned.
402 stocks and 42.0%* of that of
The public debt of the United
the Dow-Jones Industrial Aver¬
age.
In 1942 bank stocks even States, -amounted to 919,487,000,000
on June 30, 1932.
From there oh
fell beneath their lows of 1932,
while the 402 stocks were 77.3% it mounted as follows:
It is Obvious

of bank

Union have been

forms of discriminatory treatment^

present is a matter:of. speculation.
With regard to price indices, So¬
viet Rustia has discontinued pub¬

the reduction of tariffs and other I
trade barriers."* The Master

lishing them since the iriaugurat on of the first" Five-Year-Plan,

a ;

War

in; the; balance and conditions

was

in Russia,

One must

the

fate ;of

the

when

Lend-1:

signed at

Lease Agreement:was
time

though price indices, presumably,
would be one of the essential tools
of economic planning.

ariid toi

in international commerce;

rather precarious. I

were

of^Bretton Woods;?
the1 Russians
wereapparently^
willing to v go hlong - with the >
United. States iri the liberaliza-? f
tioru arid expansion: of^interna;- j
tional trade. At present,', however,.?
they do hesitate and question the:
wisdom of getting into ;closer re¬
As ln ther:case

keep [ iricmind; <hoWever£ thatthe
price "system: in the Soviet Union
s subordinated to planning, Cofet
of production and prices of corrimpdities sbld are: fixed by : the

plari^ariH"relative pHces bi boni^
the
conducted according mridities^db-'mcrtv;ti^
allocation of factors of production.
to plan. This could be achieved
The price mechanism is used ris
only through a monopoly of for¬
a
tool *in the realization fof the
eign trade where the state eould
and did regulate and control all plan and for! redistributing5 nktidnal income.2
,r
> I L*
the international transactions of
Bv
ratifying
the
agreement
the Soviet Union. Moreover, the
Russia's
currency
will beconhe
monopoly of foreign trade enabled
convertible
into
other foreign
the Soviet state to import com¬
modities essential" for the pre¬ currepcies and will be givbn) a
scribed.. industrialization
of the par value in terms of gold.' It will
state and: pay for these imports become subject to exchange iray
through exports of commodities of fluctuations, arid, more impoftarit
which the state had a relative for Russia, will be exposed to ekternal business conditions 1 as are?
surplus.1 Finally, the monopoly of
foreign trade enabled the Russians prices of capitalist countries. 'A
more: or
less rigid relationship
to minimize the effects of wqrld
economic trends upon the Soviet between price levels in the! Soviet;
Union with those of the outside
economy, and, together with plan¬
world will be established. In othfer
ning, permitted the rapid pre¬
scribed: industrialization
of. the words, the world price levels;will
be related^ to those of the>Sbv3et
country, thus making it practically
Union;
Consequentiy,;; economic
self-sufficient: - - •

sia had to be

lations with the outride world.

factor ', in!
tangled situation is the
economic domination of X
Russia
over
Bulgaria^.*

Another

important

this very

preserit

•

Soviet

Hungary» Poland^ Romania,, and
Yugoslavia, and Russia's apparent"
aim at a gradual absorption of; the )
The.. United States and)

own.:

Kingdom

United

the

naticms. into t

of: these

economies
its

these policies,

tested

have pro-;
but without !

avail; [until

plan never vizu'al-

Bretton Woods

Such a^development,' and: if /
of ...these aimsl

ised

thri : renunciation

were^be the pate! of>

Russia's^|

jnembOrshijf In: the^ internatiorial ?

btgariization-sMmightbeu
ing to pay the price.

■

f "

'Tbe' liiipqitarif ^

have much help can Soviet Russia ^x-If
pect froiri the" Brettori* [ Woods';
Since a large portion of this
A^eemOrit vin crise i!he joins ibev
now
this, obviously^ may af fecft Tiufs- f»*gar«.i2ation? [ It: is * doubtfuif
debt was "monetized" through
Jahan internal currency Whose siari. economic independenbe.
whether priuot she jq gfeatly ln^
the .commercial' banks of America,
:pu r.^fc h a sin g power fluctuates
In addition,; the BrettOnVWfoods terested in short-term loans obr%
widely, There is no*"relatioaship
Russian -currency
inconvertible and is not
quoted in world markets. It
1920,

Since

mately 150%.

manifested in Washingsome of it directed very

strongly
tori,

developing for the

been

was discussed in July, 1944 when ;
of
peace
were ? un¬
(1) Official holdings at conditions
home and abroad of gold and for¬ known; the warcould have lasted |
eign' exchange; (2) production of a: pw?more -years;> and: the: ecpriomic * strength • of Soviet *'Russia
gold;' (3) -International investment

Fund.V may :; require,The

items

might^i^have^ beeri^ ;dmpaired> to^'I a;
Russia ,Ms positionprice indices,;i,ie;[ln- much* greater exterit tham it actii-j
dices -bf com
last■ 25

Soviet

that

System

earning assets

values and

Woodsand Soviet Russia

(Continued from page 1495) ] v
parent hesitation of the
I
Government in joining the orgariizatiori. These factors ure directly
related to the social and economic

Conditions of the world may

has been

commercial, banking,
particularly at the larger institur
particularly, -the. large. New York
tions. Investor Confidence sagged
-City, institutions, the latter's de¬
and was reflected in the market
posits and .earning assets, rose con¬
for bank stocks*.
siderably. The following year-end
'> An offsetting factor developed,
figures of a group of .15 leading
nowever, iruiii uiu
jjuxup1 a*a*vo
however,' from the "pump-prim ^

greater influence over
Russia's economic conditions,; a-hd

much

pointedly at

ing" activities of thef. Government,.

New. York banks -tell the stoCy:
Total
U. S. Gov't

.0^0

Year-End

'1932——
1933

1935_

1938^^_--_-.-

■

-———

1939::..-—-—.
1940—-—-—'

1941-—-------— '

4,656

.14,215
17,349
17,465

10,738
:.

7-040"

;;i2,636i.:

NEW JERSEY

-,*

-c

the

Witfi

ratification

the

Soviet
Russia will have to submit peri¬
odically

eery iri amount .of in¬

formation

Fund... Article

the

Mikhail V., Russian-Ameri¬
can
Trade,-p. 22, The Bureau .of Business
Research, 1946, The Ohio State University.
1

J. S. Rippel & Co.

Stock Exchange

;

YORK 5. N. Y.

7-3500
Teletype—JVY 1-1246-49

Oibbs, Manager Trading

Established

Since "Peatl

tional

debt

BANK STOCKS

IN S URANCE &
—

Sold

—

Quoted

REVIEWED

COMPARED *

Trading daily 7 a. m. to 5 p. m.

Inquiries invited.

(P. C. T.) ;£

Orders solicited,

;

BUTLER-HUFF & CO.
OF

CALIFORNIA

210 West 7th St., Los

Chicago

TELETYPE

279

[?[•;;

San Francisco
L.

280

1945

political

and

Seattle 1

Ibid.,

from

assets of

Russians.

3 Bishopsgate,

Burlington Gardens, W. /
iV. 1

-u—.

banks

with

-ended

the

year

($000,000)

11,620

13,382
v

banking system

alL

mercial; loans

visualize a balanced, budget

with

that

appears

shown

will.-.also-Temain

undiminished

the -portion

debt, "and

carried by the

banks have earned
on

this high

sets.

.NATIdNkLSANK

e^^ricting,^

of INDIA, LIMITED

•

Space does not permit at
a
discussion of what

this
the

and may earn

level of earning as¬

A discussion of

presented in a

0V0 .-004'<" 7;

Meanwhile, comare

<ayn Mills £ Co.

•

124,362

time

year.

this observer,
however, that for a considerable
time our country will be saddled
[It

was

Ajssobteted^Batiks:...:
WilIiams Deacon's Bank, :jLtd..:
*, -

4
h

in this colrinin' two
weeks ago, so that the outlook
for; 1946 and even longer, vis that
the:, total earning .assets of these
watchword of Washington, even banks will be maintained at a
though some appraisers of the fu¬ high level, and may exceed the
1U45 year-end peak;
;
'
ture ; course of[govern
fi¬

this peak b£
maintained?
It may even be exr
ceeded, for there is as: yet little
evidence that economy will be the
Will

r' ,:-v40.i

■.

22.451

;

16,003

undiminished.

»earhing rissets at an;

12,636
16,902
18,671

Earning Assets

7,040

15,780

deposits, Governments

peak.

£115,681,681
"

($000.000<

28,163

TOTAL ASSETS

haVe risen
Total

E. Q. 1

Cross, S. W. I

464 New Bond Street,

Gov't

E. G 2

8 West Smithfield,

49 Charing

Securities

■

throughout Scotland

LONDON OFFICES:

a-partial clue to

the 15 banks

1727

factors

16.

follows:

1511).

BtADlriFFlCE^
Branches

Bretton Woods Agreement

The

page

Incorporated by Royal Charter

other

number

which may give

20^(57 I;
21,819
'25,155

-10 42 L. 0

and fotal

Angeles

pro-

Royal Bank of Scotland

moribund.

the behavior of the

fSOOO.OOOi

1944"_^_—

nance

0: ;•«*' 0'

PRIVATE "WIRES

New York

expanded

17,465'

time

Special Bulletin and Booklet Service to Dealers & Brokers
;

are

economic

Pepbsits:

Phone—REctor 2-4383

Department)

Bought

Hatibor," the na¬

has

Y«ar-End

MArket 3-3130

1945

There

U. S.

These

ANALYZED

sian interpreters,

1891

;

(Continued

ih'J

18 dint©* St., Newark % N. J,

Telephone: BArclay

(L. A.

disequilibria

$48,961,000,000 on June 30, 1945,
ings of Governments 1-80% and to approximately $2-32,375i;o60,OGO
total
earning
assets,
approxi¬ as of Oct. 31, 1945. Deporits and

Laird, Bisseli & Meeds
Ben

according to' the Rus¬

namic, is,

Condoide,

mately 70%.

Members Hew York

•

Deposits Increased 130%, hold¬

STOCKS

120 BROADWAY, NEW

■

—

•

•.

upset the price level

BANK STOCKS

INSURANCE

leviation

enumerates what information

and

principles,
will prop.-

achieve a- great .' deal of ably. strengthen the capitalistic duced by. unfavorable trade bal¬
economic independence'' without" way of life throughout the; world. ances and to bolster the declining
much danger that movements of
If this proposition is correct; the exchange* rates of Weak "curren¬
international
price
levels
or
Russians are then confronted with cies: in other v/ords, to smooth
able - to

VIII, Section 5 of the agreement

BANK

arid, In case of success,

Bretton Woods Agreement,

9,260:

5,889
-

accumulated

8,325

9,36t>
.

3,740

•••~71t584--

credits

Thus, Soviet Russia' was

abroad.

8,429

A?8,470

3,453

10,647

7^29

4,059

1936—ft,655

Settled by shipments of

counts are

gold and by.

Agreement is espritially a plan to tainable. from. the International!
improve World, trad e conditi ori«
Monetary Fund since these loans*
within the framework of Capital¬
are to be used for temporary al¬
istic rules of action or

changes in -cyclical,

3,683

10,751

—

\ 7,087 *

3,390

9,409

fc——

1934——

7,465

5,280

external

Foreign trade * ac¬

levels.

phases would
:
i 0'
and.the eco¬ the necessity of deciding tyheth£r
nomic 'structure of Hussia.
they will participate in a plan !to
bolster an economic system-which,
Will Russia Furnish Information?
though still powerful and [dy¬
I

2,498

7,325

($000,000)

($000,000»

7,704

—

Earning A'ssets

Securities

•Deposits
(S000.000>

internal. and

between

price

this will be

subsequentissue.

■I

Bankers

the Government

Kenya Colony

Bead Office:

and Uganda

26,

Bishopsgate, ;

In India, Burma,
Colony and Aden and

Branches
:

Subscribed Capital-^

Paid-Up
Reserve
The

•

Capital
Fund

Bank
conducts every
banking and exchange

Oeylon, Kenya
Zanaibar
;

£4,000,000

£2,000,000
£2,200,000

description
business
_

at
„

Executorship* rW
also undertaken

"Trusteeships and

rioqqb'd--;

■<

,-[1

London, £. C.v

\Volume 163

Number 4474

THE COMMERCIAL & FINANCIAL CHRONICLE

(Continued, from page 1510)

'out

fluctuations

in *

foreign

ual

absorption t of her neighbor
provide her / with

greater resources to maintain

change rates.

an
: j: :(b

indepent economic world of her
The

own:

of ■Eastern

resources

•

Loan

Europe' are: great }'ahd1 they

of 1 Russia.■■ Czechoslo¬

expansion

tejrestie&^: obtaining largq lon^

•:

can

contribute greatly to the economic

Russia: is, however, Jn-

'Soviet

countries will

ex.-

Russia Interested in Long-Ternr

1511
"s

vakia,v Poland and;; to ""a: certain
restore, reconstruct and develop exteht,^Austria?caii greatly alleVi-^

-her

the":' shortages

ate

economic:^system. /These she

/ ca'n* get '//from v the

goods

International

B^nk; forRecopstructiori and1 De- maining countries * will'
her
y^lopmenjt,; though / sthe amount and With f large amounts

bank.

For

.time Russia

'addition,"-Russia 'has /been'
quantities of
existing stocks of goods and of
equipment from Germany,' Bul¬
garia,^ Romania, '/■• Finland,' "* Hun¬
gary, and to a lesser extent, from
Austria; and Manchuria,^ justified
able to obtain large

hopes of obtaining a
large loan from" the United States

a figure of some. $6 billion
been mentioned.. frequently.

has

However, with the recent decision
of the Federal Government to

provide
of food

••

has

entertained

apd

other necessary raw materials.

I and size of the loan will be de¬
cided upon by the management of
the

.•M \

off consumers'
while the re¬

Russia,

as"

reparations,; • war -booty,, and
<y:
] This/latter course dhay -alsa be

use

restoration of looted property./

5tfte--i;/Export-Import^ Bank 'for
'

granting loans * to foreign nations,

except in the case of the loan to justified 'arid even bolstered by
Jihe. Ilnited. Kingdom/ Russian political arid-' security^ arguments

from the Russian point of -view.

chances of borrowing such a large
amount of capital are greatly les¬

;

.y"'*

Since the end of the war, there

;■

/■- •

|■

*; •

/ ' ~:;7

•

:/ 77;:":

sened.

According; to Washington, has/
beeh7mUch[gi/eate^
the Export-Import Bank is ready upon the achievements of thfe colV
to. open negotiations with Russia lectivisticeconomy - of ' Russia
for a $1 billion loan But this loan which was, according to Russian
wilt be /predicated upon the ad- spokesmen;' paramount
in
the
hfcrence to and thiq participation Winning of the warl - There. has
ot tbe. S.Qyietitlnion in the Bret- also been' a rise -in the Russian

ton

Woods

Program

and

nationalistic spirit.1

the

fo^thcoi^ng /InternatioriaL Trade

and Their Families !

■

r'>

•

If ALL MEMBERS of tlic' Equitable

1 Finally, / the Bretton Woods
Agreement aiiris. at an expansiori
.

Organization. At the same time,
the problem of aid given to Rus¬

For 3,150,000 Equitable Policyholders

family of policyholders

of world trade in which the Rus¬

sia
under. Lend-Lease, vrwhicb sians have never been
particularly
Amounted to oyer $JL billion, is to ihterested; The
"foreign /I trade; of
be discussed and settled,
Soviet Russia has been" used as a

call

were

reached
an

High of $3,849,438,000,
$341,455,000 for the year.

a new

increase of

•

'"j;y.

means to

I^iat Course Will Russia Choose?
( Thus,

single-placer home, **? Equitable Town"

would be about the

St;

achieve industrialization

through the importation of / com¬

^hese will be tied

up with certain
restrictions with regard to her in¬

their

:;
hesitation of'

trade

door

that-the.

Iowa

Connecticut) school

corn

growers and

men.

relation to

from^ Chicago and

The

;

Ibid., p. 64.

work,

families

Harriman Uiges Continuation
II
Of Russian Relief
(Continued from

^/O,

rf?

Their membership in The
/'...

The position of the American

Society
-

means

are now

$00
r

j
[

Equitable

of mind' and the

peace
^

FRV£

rrns

/ -

to uskyour*

.7'

repr¬

assurance-ot

esentatives

national

pf) ft

past year they increased the life
insurance they own to $9,172,4,40,000.'

expression of our

S£wP *" r%^C

|" In the

1498)

page

;

?rEquitabIe Town''

3,150,000 members oftins, great family^

r->

mean more

homes, and

richer living fori all America.

me- "

.have Joined in a^i/eat co-operative enter¬
have
a^t.eat
enter-

prise of family security. There

factories,

PRESIDENT
pgi •

■$s»*

Rrjes and is

owners.

Truly; life insurance funds

Cape Cod fisher-

chanics3from Detroit Would be iierghborS
to Georgia cotton growers arid Oregon

Doctors

and home

teachers,

helping to finance millions of

are

productive jobs.-They are aiding farmers

and. objectives, 3

the occupation and grad¬

"if

They

fabulous

are
furnishing capital for business
industry in every state of the union.

their internal economic organiza¬
tion, and to their national, aims

economic problems

without the help of; the Western

■

funds
arid

ordinary ;
city, with Texas ranchers living next

Soviet/authorities in

international

Beyond; their primary purpose of assur-;
irig the payment of policy benefits, these

Boston,

It might look

Bretton; Woods
Agreement is definitely related to
their concept of the function of

^orld.: If c she. choses the latter
course,

t ;

- •

Hollywood movie lot than

ratifying,'ti the

of the world and continue to work
own

own

people.^ - ;
Thus iV would seem

dependence in/ the field Vof ecof
homic decisions and .policies, or,
/ cri;the; other- hand $ she may de¬
cide >to maintain complete" ecohomic independence from the, rest
her

Louisy Pittsbiirgh aiid Sari Francisco

combined!'

the one hand, Soviet modities required for the build¬
Russia noay.; join
the ? Bretton ing of her economic independence;
Woods Organization and obtain
Exports, on the other-hand;' have
seme' belp
from the Fund and been used as a means of payment
long-term credits from the Bank for these Umports and not as. a
and
the
United
States, though means to produce employment for

out

size

same

■ ■

■■■

lunds

carry

self to

cher-

out

are

out of your life insur-

on UNRRA has been
aspirations.
On these
ished" plans l\
- V ;"'V "
;
'
aid I •
principles rest our hopes for last¬ consistently y that -UNRRA
should go where the need is the 'T {w r. ^' {
ing peace.
,;;
Last^'year; these' families- received
i| "I share with the people of this greatest, regardless of any politi¬
country disappointment and con¬ cal
,checks for an aggregate of $238,064,000
consideration.
-

muTce

getung

sure

the

I ance. Send for

you

most

a copy

o/ "Your Policy to

cern
•

the direction that

over

some

Soviet Government policies appear to be taking. ;
a /'But I am not here tonight to

discuss these political issues, nor

bow they
the

same

may

be dealt with.

time I 'do not feet that

"The need fassistance and

lief

the

America

Russian

still great.

gram that has

Society

your

not

are

—

re¬

people from
The pro¬

been developed by
needs which

covers

included

aid

from

I can in fairness join iii .asking the

UNRRA.

support of the American people
foir Russian Relief unless I make
clear that I

Cross

recognize the serious

differences

political

that

have

arisen

between bur two* Goverri-

iients

and that

these'

political

the

Soviet

AlHance

has been

;

mortgages, provided retirement income

and served many

other human needs.

needs

which

UNRRA

Soviet

witli

to [ interfere

"ojujr desires, to be of assist¬
to the Russian

ance

thus to
sion of

our

tress, and
great
lives;

people and

convey to them an expres¬

sympathy in their dis¬
friendship in their

our

work

rebuilding their

Cfhnpanj Tttcorporaftd under the Louis of New York Stats

does

-y

never been our policy to
politics with charity, either

rit home

the

United States Government

Other Bonds.

Liabilities^.*7
7

i/;

1,923,667,000

i-.(..^
.......

bf UNRRA

abroad.

has been

Our support
on

this basis.

Real Estate,

v..38,477,224
Society's Policies, ...i
118,326;208
Interest and Rentals Due and
4
Loans

sincerity to

comrades along

have marched with them

a^srtie^battle

in" war^"'

•

<-•

...

•

premiums Receivable and Other

22,748,635
"
777 /

Assets..;.. .........y,,28,663,188

Allies

fields tbyictory
-

Accrued. ..y,.,,.,....
'*

*•

./v;;»

Total Admitted Assets.........
$3,849,438,783
■7

mite

1946 Dividend

% 7
$3,479,765,830;
' 54,718,578

: Z

Apfk>rtionment..

7,951,000
7,043,203

46,600,976

Total Reserves and Other

.$3,596,079^587

Liabilities..... 4

visible proof

world .peace,

Contract

4, .'pp,

Miscellaneous Liabilities.

1,165,715,122

Stocks...
28,707,211
Common Stocks.. .>..........1,2%,480
Mortgage Loans.
448,476,361

amelioration of the suffering

road

president
ar,

in; Advance, Etc.
Reserve for Taxes!.. )i-

Preferred and Guaranteed.

of the people of Russia and to hold

the

Premiums Paid
-

the opportunity to contribute to

walk with them

thomas /. Parkinson,

Reserves, "Other Liabilities an4 Surplus

(including $6,257,456 ori
deposit with public authorities)

jirdgrar^^S^io Society of; RUssiah

our" hands with

;

""jr*

Reserves for Policy and

73,361,284

Bonds

Surplus Funds:

-Reserve for Unrealized

► •

Appre-.

ciation in Value of Nonsy

"77

Amortizable Bonds and
Stocks...... ^
*••!»$
Contingency Reserve and
Unassigned Funds:
Contingency Reserve for
;
Group Life Insurance..

33,277,34*

•

j "It has
mix

Assets
Cash.............r..^.... ;.$

Government, when ugly

that we desire in all,

'■

DECEMBER 31,1945

Relief gives all of us Americans

out

7
?i

THE EQUITABLE LIFE-ASSURANCE SOCIETY OF THE UNITED STATES
rA KTufwl

'suspiciongn^ye, been nrpusfedv"this

the !

chy and state—

!
i

/'Now of ell times when serious

Ih^i^sbould/^^noipl|oW ariV con-*
Government

Assets guaranteeing this flow of benefits

of, the Red

differenceg-Tiavearise

trpVersiea that - w have: with the

s*atr.e

and the Red Crescent Socie¬

etherhand,Tfeelwithedualfo

Soylrit

together, assured

differences T. stand squarely .t>acks not: r ea^|^5 jEJ
pri.' the

| 393 Seventh Avenue, I
1 New York l> New YoTk:

hour

every

These benefit dol-

paid off

cials to meet the most urgent hu¬
man

$ 27,7 T6

year.

lars helped keep families

arid with other Soviet offi¬

ties

average

children of college education,

worked out with great care With

The program

throughout the

Unas8ignedFunds(Surplus)

5,364,000

214,717,852

Total Reserves, Other Liabilities'
and Surplus..,.,..
..,...,.$3,849,438,783

In a'cccM'd^nce with requir«mentt of law, afl bondi? subject to amortization are stated at their amortized
value, and all other bonds
7 y ;* and stocks are valued at the market
quotations furnished by the National Association ofln9urance Commissioners
y

THE

1512

COMMERCIAL" &- FINANCIAL CHRONICLE
performance, William A. Parker,
President, said: "We wish you to
know that, we are quite aware

A Policy Toward Russia

that these records have been made

(Continued from

under favorable conditions.; There
will be testing periods ahead but

it is

Building Boom
"The accumulated demand for housing is today the highest in
history," according to Distributors Group in a new folder on Group
Securities' Building Shares. The survey covers the two main divi¬
sions of the building industry—home and highway construction,
The deficiencies in housing which accumulated during the de¬
pression- years were just beginning to be made up when building

conviction that

our

ment

in booms

Please

take

depressions.

or <

notice

that

use

the expression 'a fair account of
themselves.'
We shall doubtless
make

mistakes, but we shall be

alert to correct them."

cut short by the

••

But

RAILROAD

EQUIPMENT

that

granting

conservative in¬
vestments and rising costs of liv¬ ability.
As this Average showed earn¬
ing for individuals or higher op¬
ings of about $14 in 1929 when the
erating expenses for institutions.
price level of the Average reached
The bulletin points out that un¬
381,
the question . was
raised
less the individual trust or insti¬
whether postwar; earnings of $13
tution is able to employ a large
for the Average could support a
research organization, the admin¬
price level of 260, or 20 times such
istrators often feel that they have
earnings, in view of present low
no, choice but to restrict invest¬
yields on securities. The econ¬
ments to top-grade bonds, even
omist expected some further ad¬
though return is inadequate and vance in stock prices but did not
the investment offers no protec¬
believe that earnings would be
tion against shrinking value of the
capitalized on • any such fantastic
dollar.
basis as occurred in 1929, although
An examination of the invest¬
he admitted there was no way to
ment requirements of these fidu¬
forecast how speculative psychol¬
ciary investors, according to Key¬
ogy would affect price-earnings
notes, will show that their prob¬ ratios. > Therefore, as the market
lem in many cases would be alle¬
advances above the 200 level, he
viated if they ;could bbtaimwider
believes a more conservative in¬

rl1" j
#

•&&>"■*•''#///K'J'

•

A PROSPECTUS ON REQUEST FROM
YOUR INVESTMENT DEALER OR

Distributors Group, ■ Incorporated
63 Wall Street

I New

York 5, N. Y.

••vv'- tc ;-i'

One

of the

diversification

N, TIONAL
....

Securities Series

professional

and

supervision and suggests that such
professional services are available
through,the use of the Keystone
Funds* ■- '
,

Creditable Perf ormance

The

SPECULATIVE
SERIES
•

'■

■

Priced

roil's

*Y"«\

RESEARCH CORPORATION
120 BROADV/AY
New York 5, N. Y.

izvmpO
-so.7,5-.

pCr share aSset value of. com¬
stock funds from the 1937,

mon

1939, 1941 and 1943 year-ends to
Dec. 31, 1945,
In the eight-year
period Incorporated Investors oc¬

ing to gain,} but on the contrary

everything toi ;lose;by beating the
tom-toms

against Russia.

The thought of a war between
the II. ;S,; and Russia is to me as

njionstrous I and
would

land

preposterous
S.

Stalin

or-France.

febm,*

S.I
Mxm:-

Custodian

'v"r,

*nfor the Diversification,

gestion of "Balance" as a means
of protecting the purchasing pow¬
er, of investors' savings.
:
It is proposed that an

invest¬
program made up 58% of
commpn' stocks,
34% of semiment

equity-type preferred stocks, and
8% of bonds and cash, might do

The substantial amount
stocks plus a degree of
volatility in the preferreds, should
reflect

substantial

measure

whatever

day of each'month would be an¬
other feature of the suggested

Nazis

lie

in ruins.

common

lie

find

■

that

between these two

bonds

than the

deeper

peoples

elements

conflict which stir the surface.

;

S. and Russian Policy

and

peaceful

future only on three foundations;
must conserve and develop

our

cultural

shelterless

and

reduced

natural resources;
nourish science and the

which

were not invaded by the
have suffered as a result of
the evacuation of plants, forced

enemy

transference

standards

duced
Soviet

people

populations, re¬
of living.
The

as a

whole are tired
the most in¬

tense war in their history

which
hours of

long

That is what

sentials of

the people of other war devastated
countries want a chance to rebuild

what has been destroyed

and to
forward their plans for im¬
provement in living standards,
And for that they need a continu¬
ing peace.
!
carry

; We here in the United States
know-that we want' to preserve
the peace of the world by all

It is not
means, at our disposal.
to our interest or to the interest
of the world that

the;; side

should take

any
one
country
against another.
We believe that
evew"the conflicts between Great
-

Britain and Russia

can

be adjusted

about the

talk

irrepressible

upward although in some cases, as
yet, only moderate,
Among
the
other
reassuring
factors pointed out in the survey
are the many technical develop¬
ments,
short-cuts,
increases * in
mechanization, new processes and
hew
productions, all of which,
should put the country in a better
position to produce goods in the

But that

\
race

between

^ *

to who will obtain these ends

surely and quickly and by

what

means.

ods to

The Soviet people even more than

seek.

policy.

But there is

most essential items and to as low

is compatible with sub¬
sistence and bare working needs.

ing in their myn way. There is no
conflict between us on these es-

own

which

justice

is also what the Soviets are seek¬

work, superhuman .labor, while
consumption was reduced to the
level

social

and enhance the dig¬

nity and freedom of the individual.

after five years of

made;; necessary

We must
genius of

We must aim at eco¬

invention.

nomic and
primitive forms, of living;,
^
will secure
i Even
those parts of Russia

solid

and

hundreds
are

build

can

wiped out by the enemy and
of thousands of people

were

We know that

of all mankind.

centers

hospitals,

We hope to use our

political and economic meth¬
achieve these ends.

Russians

think that

a surer

The
Communism

sense,

way to these goals.
In
Stalin in his speech of
Feb. ft Challenged us to such a
race
in furnishing the needs of

the

common

people without war

crisis.
We are only
ready to take up that challenge
and to show; that we can meet it
The only way to defeat Commun¬
business

too

ism in the world is to do a better

and smoother job of maximum
production and optimum distribu¬
tion.
Wecan sincerelyhope that
Russia through Communism can
do a first class job in the way of
improving the condition of the
people, but I also,'hope that we
can use Democracy to do a much
better job in that respect. : -,v
But iet

above aU
service

make it

clean race,

peaceful irace in hthe

humanity.- ■'*Let's

out-

compete Russia in the most friend¬
ly spirit possible, for we must
realize that militarily speaking
there

could

final victor in

future.

armed conflict between our
two great nations.
^
any

The inevitable result, of such a
gtruggle would be to bring about
either the triumph of dictatorial
Communism or the revival of dic¬
tatorial Fascism on a worldwide

It would sound the death

scale.
-

conclusion is reached that

knell over all our efforts to main¬

"This country's industrial produc¬

tain "individual freedom and the

The

Xfr 1NC-

from

General Distributors V

your

may

be obtained

Turning

having

The Keystone Company

of Boston

last
month
level ;; since

Se¬

Timing, "the coun¬
industrial production now
shows signs of having reversed

N,x|f
50

Recoveries

Congress Street, Boston 9, Mass.

years."

levels lor u several
/.--a sni^

under ouri'Cbhtrbr'We*1havb, tried
to raise1 thMtf pSfdn^ra1

have

been

v;;;

taking

ChArSit

United

of 'livlhg,
expfoit'Hhem.'' B6th;-'the
States n'and'rthb

United

issue States Army' haVe TeaSon1 to be
Of Perspective. . > . Selected In¬ proud of their record in the Philip¬
vestments Co. — Memo • showing pines.;
Calvin Bullock,—-

lowest

the downward trend."

higher

ably

not

try's

local investment dealer or

declined from ; a war-stimu¬
lated record high level for a year

tion

Mutual Fund LiteMtore

Investment
Prospectus

Thousands

Villages, hundreds of towns, col¬
lective farms, factories, schools,

program.

1941," according to National

KNICKERBOCKER SHARES

Teletype NY-1-2439

that, and

the

may

curities & Research Corp.'s current

;

Ponder the reasons for
you

"After

investment dealer or

the meanwhile?

We in the U. S. are trying to
thing else peace for many, many
Vears to come. Large parts of the further the democratic idea in the
Soviet" Union over-run by. the world so as to serve the interests

job.

reachedA the
Prospectus may be obtained from your

20 Exchange Place

side, in the two greatest wars of
modern times, even though Russia
had changed over from a Tsarist
Empire to a Soviet Republic in

et people must have above every?

common

Uuward

of Investments

New York

fought side; by

and Russia have

other Soviet leaders and the Sovi¬

discusses- the, infla-' 0$

Industrial Production

Supervision and Safe-keeping
,

Lor d-Abbeti

tion problem in a recent report.
This sponsor's March 18 Invest¬
ment
Bulletin ; offers the sug¬

the

and

amicably, and peacefully. Is it not
significant that despite century-

Balance

the

as
with Eng¬

war

1498)

opportunities for individual initia¬
tive and enterprise which are the
equities in general do
cornerstones of our own civiliza¬
—from February,
1945 rto last
toward
preserving
purchasing
tion.
•
month.
Considering the upturn
power; yet the defensive charac¬
in production in a number of in¬
; U.- Si Leadership for Peace
teristics represented by* the bonds
dustries, augmented by the recent
I am sure^vereli Harrimah will
and preferreds, plus the quality
settling, of the steel strike three agree with me when I say that
factors in these professionallyweeks ago and now the General today there -is just one • nation
Composite Average.
selected commons, should serve as
Commenting on this remarkable
M o t of s
arid General Electric whose leadership can bring a gen¬
a buffer in case of a storm.
y
strikes^ it appears that, .barring a uine postwar peace to the world.
It is further proposed that sueh
coal strike next month, we have That one' nation - is«the United
a program may be achieved by
seen the low in industrial produc¬
States.
The • reason' is that; not
placing investible funds in desig¬ tion for some time to come; the alone art we thb
mdst; po\yerful
nated proportions in the various
present Teevl is higher than any nation in the world but our moLord-Abbett
sponsored
funds. pre-war year and thero-is .every
And a dividend check on the 20th
prospect of maintaining-Consider¬

cupied third place ywUh a gaih of
157.5%. In the six-year and fouryear
periods, it occupied first
place and in the two-year period
it occupied second place with a
gain of 83.6%, compared with a
gain of 64.4% for the. Dow-Jones

fol¬

lowed.

evstone

YA OfcY.fct# Y.t> I

-T'ontptq-ici

charts is used
to demonstrate the percent change

NATIONAL SECURITIES &

■

.V'

Weekly.

A series of four

Market

Prospectus upon request from
i your investment dealer or

has

Corporation

prepared a booklet of investment
company performance based
on
data in the Jan. 28 issue of Bar-

Shares
" 'v

Parker

vestment "program should be

wrong on every count I still, say
that; the. United, States has .noth¬

interest rates on

Russia

page

conflicts between the British Lion
and • the; Russian Bear, England

Russia

invest¬

outbreak of<S>
war in
1941. The National Hous¬ trucks,buses and automobiles. Inflqtion^?~\Vhen
Much
ing Administration estimates that And, as in the case of home build¬
W. JL.j Morgan &
Co.'s latest
to fill the accumulated demand at ing, the huge present demand is
Wellington News reports on the
least
a
million
and
a
quarter accompanied by ability to buy.
conclusions reached regarding in¬
The bulletin concludes:
"The
homes per year must be provided
flation at a recent meeting of the
stocks of many ; of the hundreds
for over the next ten years,
Wellington
management
group.
c 1 As with
home building, the war of companies in the building in¬ An
estimated maximum early
interrupted a long-term program dustry have already advanced to
postwar price level index figure
of highway construction that was reflect its bright outlook. Others,
of 150 was arrived at.
This rep¬
barely keeping up with the rapid¬ relatively, have been neglected. resents a level
nearly 100% above
ly increasing use of highways by In our opinion many of the out¬ the 1939 level and some 30%
standing values are in this group.
above existing real prices.
Careful selection is required to
As to the relationship of wholeobtain best results.
."
kale prices to earnings or stock
prices, continues the report, one
A Solution to Problems of
of
Wellington's economists be¬
Fiduciary Investment
lieves postwar qarnings and stock
Keystone Co/s current Keynote
probably rise com¬
is devoted to a study of the prob¬ prices will
paratively less than wholesale
lems "Of those responsible for in¬
prices due to ceiling prices and
vesting the capital of individual
low
profit
margins.
However,
trust funds or of public institu¬
tions. Today they are confronted postwar earnings of. $13 for the
Dow-Jones
Industrial
Average
by the problems of record low
was considered a reasonable prob¬
was

Beat No Tom-Toms Against

trust

managements
are
grown-up and alert and will give
a fair account of themselves from
now

•Thursday, March 21,1946

diversification of

ment

a $10,000 invest¬
Selected American

Shares;

Things

latest issue of "These
Seemed Important.".
.
.

National

Corp.

—

tionals
Priced

Securities >&

Research

Revised folders on Na¬
Preferred
Stock,
Low-

Bonds

and

new

Bond

: The
most magnificent accom¬
plishment of the Soviet Union in
my
opinion is the wayit has
handled the many peoples of Cen¬

tral Asia, giving them a sense of
participation in government which
they never had before. They may

Series; mot

hbve

freedom of
speech;but they have more than
National
Trust
they(.haye ever had before.- They
crude oil and electric power in¬
Lord, Abbett—Current issue afb encoiiraged to maintain their
dustries; ! The trend' is* steadily» of Abstracts.
languages, their cultures, their
place recently in freight car load¬
ings, and in the steel, paperboard,

first

issue

service, "The
Funds " Survey."

American

Volume 163

Number 4474

THE COMMERCIAL &
FINANCIAL CHRONICLE

•
Their best
students are given a chance to
study science, economics, govern¬
ment, and the arts in Moscow and
I Leningrad. 1 In Outer Mongolia I
saw a number of
Mongols who had
become highly skilled in the man¬
ufacture of animal vaccines be¬

costumes, and music.

of their opportunity to
in Western Russia,

cause

fvWe need

Curtis N. Browne Dies
t

Curtis Northrop Browne, a VicePresident and a Director of the

Guenther

denly

land

have

and let's
The

domination.

cool

use

;

Let's

judgment.,

1912.

ther Law in 1921.

shall be repeating

day will

now

the

•

...

Browne

Ensign

was

Club

Peter

Security Council.

The first meetings of the United Nations have
shown that all governments in¬

member, of

justment

and

the

hope

escaping

from

only

the

horrors

of; Commerce; in its
of Feb. 28, which also said:

month

•V allay

the

fears which

are

etc.

all

ly.

Ort the.: other.hand,1we
; also must make it cjear to .the
Soviets ; that we have no intentioii
Pf 'creatingplocs or special >axis

;

Century/^*

•'

43NfO'pe^u^elcenc^Oi Imperialism
f-.sy&iv
:.L,
r..
;::^};Jhe;®mJOaqn.,j[.people of the
.

world

jWill «not[tolerate any

recru-

'^escenpe of ^mperiaiism even unqer {f enlightened
^Anglo - Saxon

atomic.,bomb auSpiCGS- If the Eng¬

lish; ^peakingpeople have any
destiny "at all, it is to serve the
World—not
same

Their

to dominate it.
The
is true of the Soviet people.
chance

of success; lies: not

in domination but in service. Our

joint chance of success lies in de¬
veloping the maximum trade be¬
tween

the

two

countries,

the Department of
eager
we

to facilitate

policies
of service the whole
gear

our

We in

Commence, are
this

jra«fe^
to^t^Pdeal

•

less

27,500,792.97

Taxes

S. Government

;

Secur-

cost.:

cqst^

pay¬

....

Securities

(

Con-

303,555.39
1,108,412.58

Accrued

18,051,481.78

Investments'

55,708,771.86

Notes

Inventories

cost

;

lower1

-r

2,020,150.63

1,850.254.42

Common

■'

•

Insurance,

etc..:

,7!

Stock, without
value,
basis
$5.

par
n

1,757,187.83

per Share
.
Issued 2,401,288

$12,006,440.00

b;-Capital Surplus^ii^iX^vlOl,037,235.00
Further Surplus
' 109,726,505.87

;7-;--7'

Total- Capital
Surplus

Patents, Processes, Trade Marks, Good-

largest

18,656,776.82
,

297,233,828.10

DEFERRED CHARGES-

Taxes,

40,000,000.00

General Contingencies—

CAPITAL STOCK AND SURPLUS

187,912,974.48

Prepaid

Secur-

25,464,865.36

27^034,266.52

OTHER,ASSET^1>

$234,706,646.23

and

Ities

Sundry-

market whichever is

•

Insurance

Re-

ceivable—less Reserves

v.;,

15,276,512.50

and

Obso«.

lescence, etc.

': i;

Depreciation,

Accounts

Will,-etc.21,305,942.61

Deduct

an<T""

Stock

Treasury

Stock.

$222,770,180.87
25,837,300.48
196,932,880.39

Total

.$520,599,994.29

Securities

Government

Refund

Tax

Bonds

December

States

Total

31,

Steel

with

1945

consist

of:

principal value

Marketable Securities consisting of 150,500 shares of common stock of the United

of $37,515,846.

Corporation -and

with principal value of $17,000,000; Excess Profits
U. S. Government Securities having market value

Notes
other

Savings
and

Treasury

of $1,188,352;

7599,994.29

stock of the Air Reduction Company, lire., listed on the New
31, 1945 of $26,924,313.
Treasury Stock consists ot 187,189
refunds totaling $8,795,927, principally due to additional
amortization allowable for prior years, are included in Accounts and Notes Receivable.
Charge to Reserve for Gen¬
eral Contingencies includes $2,573,648 on account of assessment of additional Federal taxes for years prior to 1944, and
-$1,959,431 representing' additional amortization of $9,184,362for years priqr-^pAl94$;less related; tkx cremt w $7,224,931.
York

Stock

Exchange,

common

had

stock

■

270,000

market

car.ried

value

at, cost..

capital

at December

Claims

for

tax

Further Surplus consists of $88,104,661 earned surplus accrued to the Company since its organization' and $21,621,845
its subsidiary companies prior to the Company's organization. ;

consolidated

\
"

;

income account^

VYEAR ENID ED DECEMBER 31,

Grasi'. Income (ether than diyidends and interest) after provision
repairs- and; renewals, -all -'state, local - and capital stock taxes
Other

Incomeif

Dividends
-

r" 1

Net' Income

/-5:■

$2,677,395.61*'

before, provision
,

for Federal

Income and Excess Profits

■>

471,063.10

———

Gross Income

•$ 27,823,952,86.-

'Is;!

Federal Income

;v v

1945

for depreciation, obsolescence,

v''f ."

;

^
Taxes, ——S

Exces*;^ptits;Taxe8-^^Ii,rr^---^-r^-^-------^r'iXX^XXXX-XX.^^iX- ' .12,058,806.60
$18,913,605.07

-X

—

MEX.-^

surplus account

•

Arthur % P. Quinn and; Elizabeth
Quinn have formed Quinn & Co.
•

•

Surplus at Decemhef .31; ?1944___:
Net Income,v-year • *1945-.w«.i*.

Franciscan

the

Less:

with

the

Denver

Merrill ivLynch,

office

beth

was

Bros^^^.

Eliza¬

1944.

Allied

tance as

a source

upon

impor¬

upon

spirit

bf\national unity and international.
cooperation.

have

Federal Income

York,

Dye Corporation,
N.

examined the

sidiary companies

_4.i-.X__

ba?d .«■ 1.'

;_X_C—__-.X-X_—X.

;13;284,594>Pft

,-.:-,Xx^_'Xp_-^_-x--:• $210,763,740^7

Profits Taxes for

and Excess

;

1945 is after credit

of»$l,418,982-/nr^tq>x5aTryjrbacic

4;;;;

consolidated general balance sheet of the Allied Chemical &
31, 1945, and the statements of consolidated income

Dye Corporation and

sub¬

and surplus tor the calendar
the accounting procedures of the; company
nd
its subsidiary companies and, without making a detailed audit of the transactions, have examined or tested accounting
records of the companies and other
supporting evidence, b7 methods and to the extent we deemed^appropnate.-oui
examination was made in accordance wit> «*oneral<v accepted auditing standards
applicable in the circumstances
year

the organization of
and

New

of friction;

better production, upon better dis¬
social services,

Amount of

Chemical

For;the good life of the common
people depends upon the same
things everywhere: upon more and

tribution,

Treasury Stock, not included in Incotie

provisions^qt.the Internal Revenue..Code.

countries

will become of much less

Surplus at December 31,« 1945_X___—_

cashier for Stern

socialist

Dividends

,,,v.,
$14,407,728.00.»
1,123,134.00 M,

The Company has elected to amortize emeryenry-facilities over the period ,betw.e|ft timCL oft
30, 1945.
Additional amortization of $4,807,278 has been charged against 1945 gross income. AddiMCijal amortization
for years prior to 1945 of $9,184,362 less related tax credit of $7,224,931
has been charged to R&fffve for General
Contingencies.
Gross Income has been charged $671,514 for interest paid on additional Federal taxes for years prior

of Kansas City.

capitalist, and

$224,048,334.-87

^__18,913,605.07^_^.a.

Pierce, * Fenner

& Beane from 1931 to 1941.

$205,134,729.80

Dividends"declared:.on Common Stock

Hotel to engage in an investment
business. Mr. Quinn was associ¬
ated

•.

accrued to

—r———*

ALBUQUERQUE;

$6,969,836.05
-

$26,433,285.80

$64,428,558.24'

Quirin & Co. Opens in
Albuquerque,N.Mex*

;

Advances

Among major industries reg-?

with\ offices
I

tract

op outside the United Natioris Organization. y W&Vare op¬
posed to any ideas of "The Ameri-

Account* Payable
U. S. Government

—.$282,123,096.40

RESERVES

Marketable

Equipment, Mines,

cost

*—

ities

■

^Inside

LIABILITIES
CURRENT LIABILITIES

CURRENT ASSETS

■ -

.Africa.,

Respectfully submitted,; '
:. >
:
•
H. F. ATHERTON, President.

Wages Accrued

vanced 13.7 and 12.1% respective¬

the

the trouble that

Sundry Investments at cost

istering declines, communications
j
(off. ;5.6%}miscellaneous * (Off
We,must rnakea special effort 4.0%), and manufacturing
(off
to. talk things over with fhe^Soviet
wereiiotewprthy.
leaders and to come to a. friendly
Within manufacturing, the 15.3%
; understanding;£^ :I think * thatr
wj& rise of chemicals and the 14.2%
can makd it clear to
the ^Soviet rise of textiles and leather were
Government thai no country howjoutstanding. Farthest on the down
ever powerful
In a miUtary or side were other
manufacturing,
economic way can dominate
by transportation equipment, and o|l
mere...force .even' the„, smallest
refining with reductions ranging
^countries. forcveryflohgY "RUssia from 11*to'1$%''. Dividend pay
can't ride roughshod over Eastern
ments in the iron .and steel and
Europe and get away with it any
machinery except electric groups
more -than\ we
could; in Latin;
America or England, in; India ami were about 6.5% lower.
.

brewing.

INVESTMENTS

reporf

were

for trade and finance which ad¬

cause:

comparison

J',

ASSETS

Percentage gains in the three-

miseries of war.

But aside from the UNQ, we in
the United States can do much to

„

Real Estate, Plants,

ment

and

PROPERTY ACCOUNT

Cavite, Philip¬

Jan. Div. Payments

ad¬

sorrow the recent death of Mr. Rowland Hazard, a Director of the Company since

consolidated general balance sheet—december
31, 1945

$358,400,000
sues, can accept decisions made
during January, bringing the total
by maj ority vote even if that for the three months
ending in
f. means a defeat for their own pro¬ January to
$1,326,500,000 or fract
posals.' We must furnish, leader¬
tionally larger than in the same
ship in cultivating this method of
period of 1944-45, said the Depart¬
discussion

nitrogen; products,

C. Browne, USNR,

amounted

for

ments

"
Dated, March 14,1946.
_

his widow,

Publicly reported dividend

capacities

The

international

formation,

Cash

cluding; the. Soviet Government
can cooperate, can make adjust¬
ments
and
compromises,
can
speak plainly and openly even on
the most difficult international is¬

includes projects for increased

program

oonitributloh of American Industry to the successful termination of the war will
provide a prominent
chapter in world history.
The chemical industry of the nation has had an important share in this achieve¬
ment.
Although many problems arising in the transition from a wartime to a
peacetime economy confront
all industry, in the opinion of the
Directors the Company is prepared to participate
fully in the continuing
industrial progress of the country.
<
%
'
' '
/
■

pine Islands; a daughter, Miss
Sheila. Browne; a brother, Gilbert
G.
Browne; and two nephews,
Junius H. Browne, and Philip K;
Browne.

Economic and Social Council and

Company's construction

^The Directors record with

its

of New York

survived by

stationed at

now

We have the United Nations Or¬
ganization with its Assembly and

$270,742^698

—

Winifred Chisolm Browne; a son,

to arrive at a sensible compro¬
mise.
■

j—

first six months of 1945 the
Company's business exceeded that for the corresponding period of any
In the third quarter, cancellation of war
contracts resulted in a decline in volume, and total
total for 1944. Selling prices, which have not increased substanand for which ceilings are established by Government regulations, continued at about

Tb^

City, St. Nicholas Society, Society
of Colonial Wars, the Sons of the
Revolution,. Mayflower
Society
and the Society of the Cincinnati.

3,148,459

—

the Harvard

eliminating fear and for discuss¬
ing all difficulties in the open so

15,765,146

;

acids, alkalis, dyestuffs and synthetic detergents and for
production of a number of products not heretofore
manufactured by the Company.
A central laboratory is under construction at Morrlstown, N. J., at which
fundamental and exploratory research will be
conducted to supplement the extensive research activities of
the- Company's
operating divisions and subsidiaries.
:
■
'
*

Mr.

for

17,844,897

'.v

As a result of
renegotiation, .It was determined that no excessive profits were realized by the
Company on
Government contracts for the
year 1944.
While such contracts for 1945 may be subject to renegotiation, no
substantial, adjustment la anticipated.
••
;

Browne had always
active part in the civic

-•

:
means

•

Mr.

tion.:v- j

our sons and

j Role of UNO
have

Browne

Village since 1942. He was
former president of the
Metropolitan Badmintom Associa^
also

grandsons will pay for these fears
with rivers of blood.*

of the

history, and the

when

come

payments ordered by Government (taxes)
using the tools (compensation to owners)
dividend ' receipts.—-.
;

?^r <Jev!r ^ „average hourly wage rate was 83% higher than the average ten years ago. The Company
paid dividends of $6.00 per share,;
"
>
'*
r
<
<
Gross additions to the
property account amounted to $8,655,801.
Retirements were $3,610,562.
The Com¬
pany has made final settlement of its
principal tax liabilities for the years prior to 1944 and additional taxes
aggregating $2,573,648 were
charged to
contingency
reserves
previously created.
The Company has amor¬
tized
its war facilities and the
difference, amounting to $1,959,431,
between
the
accelerated
amortization
applicable, to years prior to 1945 and the
resulting tax refund, was also charged to contingency reserves. :

taken an
affairs of the yillage: of Hewlett
Harbor, and has served as Mayor

;

17,729,303 ."

Guen-

1930,

as if we had never
global war side by side
with the Russians against the Nazi
enemy. If we let these fears dom¬
inate our minds and hearts we

fought

62,708,811

Curtis

Since he moved. to Hewlett

years %agb

$153,546,082.........
• •

year

inil

Frank

and of world Communistic revolu¬
tion.
These fears take us back to
where we were some 10 or 15

bought, from others

cost

and

staff of Albert

of; communistic penetration

services

Jhe

minds are' dominated by the fear
insecurity. On the other hand,
sorne Americans are driven,
by the
of

and

cost of

v>..

•;

pusiness lor the year was slightly less than the

fear

goods

Total Receipts

Sugar
Refin¬
ing Company,
he joined the

of their actions because their

—

the

fully the psychological effects of
some

years

with

•

Interest

American

not

may

expended for:

cos* °, human energy (wages and salaries
C08* °,'ool® wearing out (depreciation)^'—

•

After

realize

Soviets

..v

',V
.

were

cost

.tu

Harvard

some?

year.

$267,594,239

receipts

The

Co lie ge

of the Company at .the close of business December-

These

Mr. Browne
from

the

was $18,913,605.
"i;: .r';' '.
;J; ■
'.
^n^ratlon pay all Its costs of production. • These costs Include, wages and salaries,
htr
vL
nation to the stockholders who provide the assets which are the tools required
by labor for the production
of'goods and services. '
r
.
.
,t
,
■
1945 the
Company received from

graduated

disclaim

for

account

....

...

a■

York.

cur¬

Income

r'^".

Corporation

■

Net Income for the
year

native

New

consolidated

;

age

The Soviet Gov¬

its

world

;

avthe consolidated balance sheet
1945» and the

was

years

and

clear statement of the facts

To the Stockholders:

Sun¬

leaders

war.

and

for

sud¬
\
1

day, March 17.

aggressive intentions and any de¬
sire

died

lett, Long Is¬

people in this country and

ernment

Inc.,

his

study

elsewhere and which feed the

rent talk of

Law,

home at Hew¬

of the reasons for; the recent ac¬
tions of the Soviet Government
which have been so disturbing to
: many

Allied Chemical & Dye

advertising firm of Albert Frank-

better understanding

1513

then

ended,

have

December

reviewed

the

system

internal

coitrol

and

^and included,all procedures which
?

we considered necessary. V'
~
^
'•
X
In our opinion, the accompanying consolidated general balance sheet and related statements of income And sur¬
plus present fairly the position'of the Allied Chemical & Dye Corporation and Its subsidiary companies at December
; 31, 1945, and the results of their operations for the calendar year, in conformity with generally accepted accounting
principles applied on a basis consistent with that; of the preceding year.
March 13. 1946
»•
'
•
*
'
I '
"
< WEST,. FLINT. & CO.
,

V1514

•-

■'*

THE COMMERCIAL & FINANCIAL

CHRONICLE

2% % of gross, less any. charges

made for

depreciation and amor¬
property, other than
equipment. There is also a small
senior sinking fund of $1,751,608
ranking ahead-of contingent in¬
terest.
There:'are two classes of

tization

Railroad Securities
Last week

the

interest—the secured
interest of $3,854,481

special three-judge Federal Court sitting in the
Baltimore & Ohio voluntary debt readjustment proceedings signed a

contingent
contingent

decree

ranks

first -and- consists

of the

contingent interest applic¬

giving final approval to the plan.
The motion of one group
of holders of the unsecured 4M>s, 1960 for the taking of additional

It is believed that there is no further
legal recourse and that the plan will now be finally consummated
within a very short time. / Consummation of the plan will in
turn open the way for anticipated
refunding operations this fall in¬
volving the bulk, if not all, of the
company's senior, mortgage issues.
It is felt in most railroad quarters,
Cons. "A" 5s, 1927
testimony

dismissed.

was

able to the Refunding &'

•

on
the 1st 5 s, the 11/2%'! on
Southwestern Divisions, and

that

level

& Ohio should be able to achieve

shall remain at

plan

tension

000

savings

mortgages;-thus fur¬
-

itself

all

brings

••

Timiii Aircraft

and interme¬

near

000.

% '■

All

York

and other
leading Security and Commodity Exchs.

interest'

120

Broadway, New York5,N.Y.

indicated

the

interest

for

000,000 there will remain in
i restriction
on
dividend

1st 5$ ahd

Corp.

Dixie Home Stores >

Missouri Pac. RR. Serial

monetary

National Mallison Fabrics

the

the '

the volume of
balances
taken

are

place.

money

considered as put¬
ting the ToadL in a position vir¬
tually junpervious; ^ to ^depression
conditions as fixed charges will
The plan is.

power

tually

''General

within indicated

earning

of the property under vir¬
conceivable conditions.

any

Also, even in normal business
cycles the company. should have
little difficulty in" covering the
secured contingent 'interest)■/ It? is
likely that unsecured contingent
interest* will be coveredJ only! ib
years of prosperity.
The stocks

earn¬

ings. All. of the interest on the
unsecured.? -.4%s,
1960
will
be
contingent on earnings.

the

well

appear1 far removed from, effec¬

fixed

•

Feasible refund-,
might bring 1 |he

Teletype
NY 1-1499

Specialists in

RAILROAD

credited

with

was

been

now

SECURITIES
at

all

RAILROAD

The purpose of

The

(1)

restoration

•

confiscated.

Northern States Power

7% Cumulative Preferred

New York 4,N.

If the securities

an indemnification,
total, will be paid.

owners,

tial

(2) The second aspect is
Tax

evaders

can

par¬

fiscpl.

overtaken.

following results:
(1) Recognition

of the present holder of a secur¬

jasjwell a$ with blocked, ac¬
a

"prima facie'*

ity, who has registered it;
(2)
Reinstatement
of

sale is

North West Utilities
•

Bought—Sold

Company

--Members New

^
.

and

con¬

restrictions

will

presum¬

a former1
has lost his property

rights of

—

'• -

N, Y.
Telephone REctor 2-7340!.» 0 -iV

likely that 1946 will prosuhstsfhtial amount - for
sinking; funds.
• '
-

;

„

ment- of

Dutch? securities

whiph

owner

nor

former,

one.:

;

(4)

Declaration . of- the Dutch

Geman^Reparatioiis
come to German repara- I

the traditional lag in get¬
stock of foreign securities.
ting "railroad; expenses under con¬
| It necessarily follows that some
trol, ? probable.% wage
increases measures:
regarding life insur¬
retroactive \ to y the % beginning of
ance, mortgage loans, etc. as well J
the year, and no rate relief likely
as securities, - had. to be.
taken.;/ ?
until late in the year, it does not

Quoted

YorkStock'Exchange:

the '
ownert' who

in an illegal
way,' provided that certain condi¬
tions are. fulfilled;
??
,(3) Confiscation by the Goverp-t

covery,

120 BROADWAY, NEW YORK 5,
■

charges

delaying a general economic re¬

SUTRO BROS. & CO.

Delaware, Lackawanna

fixed

ably have to, wait on . a number have " not been
registered at alt
of x years of high earnings
and and those securities which are as-l
-consequent: heavy sinking fundsigned neither to the
present
payments?- With industrial strife

6% Cumulative Preferred^

7% Cumulative Prior Lien Preferred

& Western R. R.

can¬

The registration also provides *as
broad
as
possible a basis for %
the Netherlands Government
to future taxes, of which a tax on
carefullyconsider; ; interference personal wealth, a tax on the
with internal capital movements. increase of personal wealth Or !a
Financing. out reconstruction in one-time 1 capital levy will un¬
the coming, years will., originate doubtedly be preponderant;!
j?
from two principal sources:, im¬
(3) In the third place the reg¬
ports of, foreign capital and sav¬ istration has a political purpose.
NetherlandsT Government
ings!; out of > current Dutch in¬ The
comes. ; The
use
of old. sayings. will confiscate enemy and sim¬
and1 the urge to spend capital ilar property (for example of per¬
freely: have to be opposed by sons who collaborated: with the
keeping strictly under control all Germans); The registration will
possibilities ; of free and easy provide the data necessary fpr
spending?. Some system of forced this confiscation, which will in¬
securities
saving? even though it may have, clude
bought
with
some •:.! disadvantages,
may
be monies earned on the black mar¬
necessary in order to avoid infla? ket;
tion.asia means of. financing our
(4) Foreign Exchange control
recorfstfuction!!Therefore, a com¬ is the fourth aspect with which
pletely free capital is impossible the registration is related, Neth¬
at the present time, and some de¬ erlands owned foreign securities
are
an
important part of ythe ?
gree of control is inevitable.
; The
situationJ at the Amster¬ Dutch foreign exchange assets;
dam
stock ; exchange
can * be !! Briefly, the registration of se¬
summarized as follows?
curities will have to lead to the

idend

Company (Del.)

Telephone BOwling Green 9-6400
•, Teletype
NY 1-1063
•

the

be returned to their rightful

not

tingent interest down to around
$23,000,009 but; the level of $20,000,000 necessary to remove div-.

>■

Street

rights of former owners who.haVe
had
th o i r
property
illegally

a* more profound rea¬
which makes it necessary for

total

INCORPORATED
25 Broad

every
secur¬

■There is

son

counts? ?The, proceeds of

Times

STOCKS-BONDS

in¬

free

61 Broadway, New York City

iFor Banks and Brokers
CUARANTEED

consider the

Situations

;

this is fourfold:

V'
Selected

diminished.

ity to register it.

logical, consequence

Internal. Capital Movements

sys¬

Registration of

ities.; It. is necessary for
legal or actual holder of a

trans¬

of the money purge.

the

damages,

capital
in
circulation,
namely; the registration of secur¬

blocked

capital

war

Securities

will

ternal

account, but under certain. con¬
Thus,
interference

(a) - Trade
in - ordinary and
mortgage bonds is allowed with

PFLUGFELDER, BAMPTON & RUST
--

have

after Sept.. 26,
these assets - would

from
to

influenced

Enforced

proceeds

actions,

YORK 5

HA 2-6622

spending

pri¬
cashed after the
date of the money purge, (Sept.

money

Will

accounts

when

ditions could be reinvested.

which

vate assets were

1945,

■

of free

possible

changes in the Dutch fiscal

the .first .place ..certain

tem, etc.
% '• v! ! ■
j.J
(c) Furthermore, decontrol of
the stock exchange will have to
wait until the present registration J
of securities is completed so that
holders in good and in bad faith!
are duly separated, and until the
present tendencies towards free

purge?

money

out

indemnification

i :
point

have

Telephone

ue,,

f •
of view the
purge did. not seem; to im¬
■

this

From

more? is
known about their intrinsic v51-

goods. The blocked
proof that this has

funds mentioned above.

Southwestern

Refunding

fcjrce

Van Tuyl & Abbe
72 WALL STREET

stocks

only

the volume of money and

tween

blocked

(b) Trade' in stocks: isnot' ^et
permitted.? " The
acquisition ' of

Holland; Was to re¬
store/theKhbbtoaf circulation of
currency, It. was a purely mone¬
tary operation, which aimed - at
restoring
the ! equilibrium ! bCr

pay-?

charges there -will be a capital tive earnings.
fund of. the greater- of $5,000,000 ing. operations

Tennessee Gas & Trans.

the

on;

credited

amount applied to a sinking fund
addition to: the two
sinking

arje not secured by

Directly"*- following

5%s

con¬

the balance contingent on

Magazine Repeating Razor Co..

NEW

stabilize

1945

situation

mentsl_ Any dividend paid ijvill
have to be matched by ai\ eqlual

Mortgage bonds, 40% of the pre¬
scribed interest, will be fixed and
—

and

mortgage. This portion, therefore,
was put on a contingent basis.
As

Chicago 4, 111.

Universal Match

I had to take in the fall Of

approximately $18,500,mortgage bonds with

Division

TRADING MARKETS

ures

1950, and the various series of
the Refunding & General Mort¬
gage will carry fixed interest at
the full prescribed rate. The 1 %

New

Exchange

all fixed

the exception of the 1st 5s, 1948,
the
Southwestern
Division
5s,

Ernst&Co.

after

tingent ' charges.
When
fixed
charges !and .contingent" interest
have • been reduced below $?2,-

maturities of any ap¬

quirements will be at
level

LaSalle St..

account;4

26,1945) such as old-checks and
000,000 this sinking fund need not drafts,; f inierest( • and - dividend
exceed $750,000 a year."
So long coupons and treasury • bonds.
In
annual interest requirements as .fixed charges and; contingent orders to
prevent evasions and
a.contingent basis.-Fixed re¬ interest remain * at or above $20,- frauds, it was stipulated that the

So.

The

per annum

income

ex¬

1495^ "

page

however:

preciable size with, the exception
of regular serial equipments.- It
also places a substantial ^portion

Alabama Mills

231

specifically. Netherlands.
main purpose of the meas¬

above $22,000,-

in Circnlatioii"

which is

above, equivalent to 50% -of 'net

.The

diate term

Stock

(Continued

debt structure.

5s, 1975 & 5s, 2000

"Capita 1

plicate interference with ' capital
the plan calls for transactions. „ ijlowever, siich in¬
sinking fund,:in addition'to the terference. seemed inevitable in
senior 'sinking
fund mentioned order to assure the success of the

substantial interest

on-its strong

& St. Paul

MEMBERS

Holland and the Problem oi

ther adding, to the strength of the

Chicago, Milwaukee

the

the
entire interest on the 4V2S, 1960.
-.
The" total of fixed charges and
-contingent interest will initially
with • the
present
general be in the neighborhood of $26,of interest rates Baltimore 400,000. So long as such charges

some

General

Mortgage
bonds.
•
The/t^u^s^.
cured contingent interest amounts
to $4,023,317 and includes the-1%

Chicago Railways
1

entirely

Thursday, March 21. 1946'

appear

»!"*'

vide Vany

„

now

(Continued on>page, 1515)^,

New York Lackawanna
-J,- * !• vf.

v',"

7 *•*.»' •*

•

•'

;

•

v -

& Western Division
Income

5s,

Mclaughlin, reuss & co. /

GETCHELL MINE, INC.

1993

'
-

Member's New York Stock Exchange '
i

-■

••

UNITED PUBLIC UTILITIES
BOND

UNITED PUBLIC SERVICE

Adams & Peck
63 Wall

Street, New York 5

BOwling Oreen 9-8120
Boston

Tele. NY 1-724

Philadelphia

Hartford

BROKERAGE

Specializingin^cf^qa^ecy/rities

co.

Member of National Association

of Securities Dealers, Inc.

!/ ^•<:.\!: TEL.
-.52 wall street
HAnover 2-9072

n.y. c,
,

HANOVER 2-1355

;

NEW YORK

ONE WALL STREET

L h. rothchild &

SERVICE

' :t;

TELETYPE NY; 1-2153

Tele. NY 1-1293

Philadelphia

Telephone

Lombard 9008

Volume! 163 '-Number 4474

THE COMMERCIAL & FINANCIAL CHRONICLE ~

;."v/tv

(Continued frontpage 1514) *
tions, which are; as we shall see,

mixed form of internal and

way

Holland,

•

financial

especially that
origin. Am¬

of Central-European
sterdam

ex-

■yftesnal capital, movements.
The
Paris '/ conference. of
November

thus

became

relations

two'countries

the

one

between

remained

ing until the time of

largest foreign exchange markets

Liberation.

of Europe.

our

slumber¬

your war

Netherlands,

and

December

country

;

reparations, provided for the

es¬

monetary

tablished

tions

gold,;; and

inter-allied

repara¬

agency in Brussels:

also

decided

that

It was
signatory

each

.'country could dispose of the Ger¬
assets

man

according to its

own

| procedure located within its jur¬
isdiction.

The net income of those

France- and

the

assets'*

not

was

defined, in

the Paris' Convention.
However* it. is specifically pro¬
vided that German assets include
assets
•

ance

that

1626

Manhattan

Dutch

for

was

also

if
could mort¬

( According to Federal Reserve
Board
statistics,
all
foreign-

After

the

disappearance

Netherland"

the

1674

Another stipulation
farther in the same
direction.
It
provides

''V; A.-v'-:

;

■'.////:/ V.

capital

movements

Holland has

©L Amsterdam before the

big refinery
in

Your

the

dustry has important bauxite
cessions

in Surinam. ; In

Indies,

especially

your

the

Dutch

aluminum in¬
con¬

the East

Sumatra,

rubber companies have large

mil¬

American property. Perhaps more

first

with

Important still,

are

the

much welcomed.

finance-

position to

net balance of

imports.

The

receipts on the balance of
payments, consisting of revenues
from capital,
service and espe¬
cially shipping transactions, and
from V commodity
exports
left
nearly always a net balance over
the
total
amount
required for
payments to other countries. The
war
has radically changed
this
situation.
tion of

The extensive devasta¬

Dutch

industrial

production, in the
as in the agri¬

well

cultural sector,

has put

our coun¬

try under difficulties which might
seem

almost

cite the

materials and the

interests

war: as

(Continued

lack
page

indus-

1516)

Series.F and Bonds of Series G which shall have matured

mer-

From ap-

was the only interna-

was; founded; and

practically all Western European

their
transj actions by "bank-florins." A cen,

I tury later Amsterdam, started; ac</cepting drafts for foreign ac.

after

this role

the Napoleonic/wars, but
World War II Amsterdam

until

a single bidder or by a
on behalf of a group of
bidders, each bidder makes the representative the bidder's agent, duly author¬
ized to bid, to improve or vary the bid, to receive
acceptance or refusal thereof,

/ to receive notice of closing, to accept delivery, of- the Bonds and generally to
/ represent, act for and bind the buyer in respect to the bid, its acceptance, refusal,
improvement, variance or performance, and the representative warrants that he
has such authority. Each bid must name a specified price, plus accrued interest
/; from January 1, 1946, to the date of delivery. No bid stating a price of less than /
98% of the principal amount of the Bonds of Series G, plus accrued interest,
will be considered. As stated in the Form of Bid
accompanying the Request for
■(Bids, bearing even date herewith, the obligations of the several members of a
group of bidders shall - be several and not joint.
All bids must be submitted in
duplicate on the said Form of Bid, which, together with the draft of Circular
setting forth information concerning the Railroad Company and the Bonds, is"
being distributed to persons of whom the Railroad Company has knowledge as
being possibly interested in the purchase of the Bonds. Copies of the draft of
Circular may be obtained from the undersigned in reasonable quantities upon
/'■ request*
i / Bide must be enclosed with accompanying papers in a
plain envelope; securely
sealed, bearing no indication of the name of the bidder or bidders or the amount
of the bid, marked "Bid for Southern Pacific Railroad Company First MortgageBonds,Series G,"and addressed to Mr. J. A. Sinipson, Treasurer, Southern Pacific
Railroad Company, Suite 2117, 165 Broadway, New York 6, N. Y. All bids

which the Railroad

the net income of the

the next

into- this Sinking Fund on account of Bonds of Series G shall be
required in any year if prior to July 1 »n such year all of the Bonds of Series G
shall have been retired or shall have matured or been called for redemption but

71.

D.uripg the period 1883-

curities
and

000,000

1,200,000,000 guilders,
foreign securities >2,200,-

was

guilders.

the

1914

still

ities

se¬

value

From

1910

of foreign

exceeded

that

mestic securities by

till

secur¬

10%.

the

First

World

mestic/ securities 1 market
more

significance

do¬

During
War,"the do¬
owing

gained
to

the

concentration of the banking sys¬
tem and the industrialization of
the country.

•; • ./;
t
A/During and after World -War I
much Lforeign capita^-founar.:,its
,

•

'■

this Sinking Fund shall1 be applied by it to the purchase of- bonds of any seriesat/any time under the First Mortgage, other than Bonds of Series D, as /
^thlJRailroad Company may instruct, at .private'sale or in the open market, but at

? cost

'/ subject
;

March 14, 1946

/ "

'r-

;.' •••/ /
;-

to the approval of the Interstate Commerce Commission, will be given
orally, or by telephone or telegraph, tq the successful bidder or to the representative

■

representatives of the successful bidder not later than

one

o'clock P. M.,

Eastern Standard Time, on

March. 26, 1946, and all bids shall be irrevocable
Any bid not accepted at such time will be deemed to have been
The determination of the most favorable bid will be made on the basis

rejected.

arrived at by computing at the rate named in each
the term of the Bonds of Series G on the full principal amount
1 and deducting therefrom the premium, if any, or adding thereto the discount, if
v; aoy> resulting from the price named in such bid.
'' ■
i
-< The successful bidder or group of bidders will be furnished with a favorable.
/ ! opinion of Messrs. Cravath, Swaine 8s Moore as to the validity of thd Fir/t
Morfc/
gage as supplemented by the First, Second and Third Supplemental Indentures .,
thereto, of the Bonds of Series G and of the guaranty thereof, and ;thq success/ ful bidder or bidders shall have no right to refuse to purchase the' Bonds/of
Series G on the basis of any questions as to such validity if such favorable

j bid, interest for

(exclusive of accrued interest, brokerage charges and other expenses) not

exceeding the respective sinking fund redemption prices for such bonds, on the
date of such purchase, or, if not redeemable for sinking fund, the respective
optional redemption prices of such bonds on the date of such purchase, or, if
/: lot redeemable, the principal amount thereof. Except as otherwise provided in - /<
the First, Second and Third Supplemental" Indentures, the Railroad Company
may, at any time, beginning Juljrl, 1951,' call for redemption for this Sinking
Fund an amount of Bonds of Series G,(or bonds of any series; issued under the * '
First Mortgage, which are redeemable for this Sinking Fund, or some of each,
up to the amount which will exhaust the moneys then in this Sinking Fund. All
/ bonds delivered to the Trustee on account of" this Sinking Fund or purchased or;

Sinking Fund, shall be cancelled

12 o'clock Noon, Eastern Standard

opinion shall be furnished.

redeemed by the application of moheyi in this
and no bonds shall be issued in lieu thereof.

before

;

/• of the lowest net interest cost,

Company either in cash or in bonds of any series issued at any time under the
-•/First' Mortgage, other than Bonds of Series E>, at.the principal amount thereof,
or partly in cash and partly in such bonds.
All moneys paid to the Trustee for

lnri85!Tthe'TOmber' of foreign
quoted in Amsterdam

securities

1886 the totah vaine of Dutch

•

officer of the Railroad

;

/;"/ Payments into this Sinking Fund may be jmade at the Option of'the Railroad

and New'York:"

was

presented for payment,"

received at that office

March 25, 1946. Bids so received will be opened by an authorized
Company, at said office promptly after 12 o'clock Noon, /
Eastern Standard Time, on said date. Each bidder may attend the opening- of"
the bias in person or by a duly authorized representative.
Each bid must be
accompanied by certified or bank cashier's check in New. York Clearing House
funds, for $500,000, payable to the order of Southern Pacific Railroad Com¬
pany, such checks to be returned except to the accepted bidder. The deposit so
made by the accepted bidder, or group of bidders, will be applied* to the extent
provided in said Form of Bid, on the-purchase price of the Bonds. No interest
wilt-be allowed on the amounts of checks.furnished by bidders.
■
;
/ The Railroad Company may accept the bid deemed by it to b6 most advan,/ tageous, but reserves the right to reject any and all bids. Unless the Railroad
Company shall reject all bids, notice of acceptance of the most favorable bid,
Time,;

^xcmtinded^tb^rat^/after/ London

must be

until that time.

No payment

not been

and contingent upon obtaining such authorization.
•>///// '/s-'//./•//,
The proceeds of the sale of the First Mortgage Bonds, Series G, will be applied

/j issue of the Bonds of Series G..«Bids may be made by
group of bidders.
If a bid is signed by a representative

■

J important centre for international
over

V,count. : In the 18th century Am;
sterdam continued to ha the most
London took

case

be made

loans.

be, insufficient to provide for the

tional financial centre*. As. early
Las, 1609,
The Amsterdam Ex-

financed

„

.Railroad'Company for any calendar year shall
maxibaum" sinking fund payments required to". :
succeeding July | in respect of thin Sinking1 Fund and thn
maximum sinking fund payments required to be made on the next succeeding
July 1 in respect of the sinking funds for bonds of all series then outstanding
/ which, under the provisions of the First Mortgage and the provisions of such
bonds, rank pari passu with this Sinking Fund,-the amount of net income avail¬
able for such sinking funds shall be prorated among the sinking funds for such
series of bonds, respectively, in proportion to the maximum amounts which
would be payable into such sinking
fun^s, respectively, On such July 1 if the net
income of the Railroad Company for such calendar year had been sufficient to
make such maximum payments. The amount to be paid into this Sinking Fund
jn any year may be increased to the exStent provided in any. supplemental inden- /;
tures creating other series of bonds,
bu^ the principal amount of Bonds of Series
G to be redeemed in any one year out of this Sinking Fund shall in no event
exceed the principal amount of such Bonds, which, at the Sinking Fund redemp¬
tion price applicable to'such year, can be redeemed with the moneys payable
for such year into the Sinking Fund on account of Bonds of Series G.
//
/ • / /

//^proximately 1600 until about 1600,

\ traders,

„

the retirement or redemption of the Railroad Company's First
Mortgage
there are now $25,000,000,
principal. amount, outstanding in the hands .of: the public.
There are also
$50,000,000, principal amount, First Mortgage Bonds, Series E, due January
1, 1986, and $50,000,000, principal amount, First Mortgage Bonds, Series F,
due January 1, 1996, issued and outstanding in the hands of the
public, and
'4 $25,000,000, principal amount, First Mortgage Bonds, Series D, due January
1,1996, owned by Southern Pacific Company; all of which are guaranteed as to
principal and interest by Southern Pacific Company. The above-mentioned
$50,000,000, principal amount, First Mortgage Bonds, Series E, due January
/, 1, 1986, were issued to refund a like principal amount of First Mortgage Bonds,*
p. Series B, due January 1, 1986, which are being called for redemption on May
/ 1, 1946, and the above-mentioned $50,000,000, principal amount, First Mort¬
gage Bonds, Series F, due January 1, 1996, were issued to refund a like prinopal amount of First Mortgage Bonds, Series C, due January 1, 1996, which
/, are being called for redemption on May 15, 1946.
//V The Railroad Company invites bids for the purchase of not less than the entire

Company shall have called for redemption, otherwise than through the operation
sinking fund for bonds' issued under the First Mortgage, but which shall
not have been presented-for
payment, or (b) a sum equaL to the amount available-therefor out of the net-income-of .the Railroad Company for the preceding
calendar', year in. accordance with thp provisions of the following paragraph,
whichever sum is less. The First -Mortgage provides that, if the lease of the
Railroad Company's railroad properties by Southern Pacific Company" should be
/ amended (other than the renewal or extension thereof on the same terms), or a
/ new lease entered into, which would result in reducing the net income of the
Railroad Company below what it would have had if no such amendment- had
been made, or new leasn entered; intd, the>annual payment into, this Sinking
Fund will be/the amount specified in (a) above.

hundred years
later, financial activity in Am/.sterdam fqund its. origin-in comS

{jch^ge Bank

/•

The Issuance of the Bonds of Series G and the sale of $25,000,000, principal

/j Bonds, Series A, due January 1, 1961, of which

to both principal
*

of any

[ Amsterdam

;

Italy during the Middle Ages

the

;

'■ - Pursuant to the First/Second and Third Supplemental Indentures to the First
Mortgage, the Railroad Company will (pay. to the Trustee.on or before July 1st
in each year, beginning on July, 1, 1951, as a Sinking Fund by which the Bonds
of Series G and bonds of other series issued under the First Mortgage may be
retired, (a) a sum equal to one per cent, of the principal amount of Bonds of
Series E, Bonds of Series F and-Bonds of Series G, theretofore authenticated
and delivered under the First Mortgage,-as: supplemented by the First, Second
and Third Supplemental Indentures,* less (i) the principal amount of Bonds of
Series E, Bonds of Series-F and Bonds of Series G, theretofore surrendered
to the.
Trustee^ and cancelled**except. Bonds oF Series. E, Bonds of iSeries F and- "
Bonds of Series G retired through any, sinking fund for bonds issued under the
First Mortgage, and (ii) the principal ■ amount of Bonds of Series E, Bonds of

% Bonds, Series G.
amount, of the Bonds of Series G, and the guaranty thereof, require authorization
of the Interstate Commerce Commission. Acceptance of
any bid will be subject

;■

and

the 17th century Amsterdam was
the largest merchant town of the
/world and the cradle of modern
techniques, of international mone*
/tary transactions,, such as ' the
^credit line and. floating of international loans. Just as, in North-

chants turned bankers.

Railroad Company, as a whole, or in
part, by-lot, at any time, on not less than'
60 days' published notice, at prices determined in accordance with the formula
applying to optional/ redemption set, forth in the draft of the-Circular."
<•■//

international centre is backed
by a long historical growth. In

rnrercial activity

'■■■■ '

i;and in London

: /" ■

•

/>•'■::

-'•'v/

A copy of a draft of the

Third Supplemental Indenture and a copy of the
supplemented (to which reference is made for a
i more
complete description of the terms of the Bonds and the rights of the
/(holders thereof), a Copy of a draft of the Agreement between Southern Pacific
1 Company and the Trustee under the First Mortgage providing for the guaranty
of the Bonds of Series G, and a copy of the application to the Interstate Commerce Commissjon and accompanying exhibits are available for inspection at the
office of the undersigned, Suite.2117, 165 Broadway, New York 6, N. Y., and
/ at the office of the Trustee, The Chase National Bank of the
City of New York,
? 11 Broad Street, New York 15, N.
Y., and at the office of the Assistant Treasurer
a of the Railroad
Company, Room 654, 65 Market Street, San Francisco 5, California.
»*-'■, /.■.
•

First Mortgage as heretofore

;

unsurmountable.

complete absence of raw-

for Bids

••x'

The Bonds of Series G wiU be issuecj as coupon bonds in° the denomination of
$ 1,000, or as fully registered bonds in denominations set forth in the draft of the
Circular hereinafter mentioned. They will be redeemable at the option of the

Aruba

Indies.

$5,215

and
the fact that since early
times Holland has been a net exr

>©rn

and interest by endorsement by - Southern' Pacific Company,

center of international finance

porter of capital.
<
Let me go into some detail
both points.
The, position of Amsterdam

;/// The Bonds of Series G will be guaranteed unconditionally

capital movements.
I
only recall the' great significance

West

problem

came

$ i.. "$25id0d,006,\ 'principal amount, -l^irst Mortgage Bonds, Series. G; / hereinafter called the "Bonds of Series G"), to be dated January 1, 1946; to mature
January 1, 1961; to bear interest (payable semi-annually on January 1 and
'*>
July-1 of each year) at a rate (whi<fh must bje a multiple of V&th of 1%) to
be named by. the accepted bidder; and to be secured .by the Railroad Com¬
pany's First Mortgage, dated as of July 1, 1945, as supplemented by First,
Second and Third Supplemental Indentures, each dated as of January 1, 1946
(hereinafter called the "First Mortgage")/to The Chase National Bank of
;
the Gity ef New-York, as'Trustee.
J •• » .•,
- ' .
,
•
-■/•■■

/ national'

island

an important part in
the share of the volume /of inter-;

panies has

Company/hereinafter called the "Railroad Com-

/ pany/' hereby.' requests bids for- >

for the Netherlands.

•

in the past an important
purchaser of American cars/ has
within its boundaries a subsidiary
of the Ford Motor Company. One
of the largest American oil com¬
land,

$25,000,000 First Mortgage
'

•

Southern Pacific Railroad

/always had

„

American in¬

tire

result of its export of cap¬

for

Finally;: something should be

the

;

glad to acknowl¬

numerous

assembling factory)

ital, Holland was in

Invitation

1 said about the external aspects of

1939

Java

Ameri¬

The

SouTHEjRN Pacific Railroad Company

.External Capital Movement

England

industries

can

companies

Guinea.

have been very

"plantations and the largest rub¬
ber / plantation of the island is

lions.

Dutch

New

mulation, not by speculating, but
by saving and investing. On the

amounted

gage it.

or since
entry into the war of .the
country concerned, which result
in" the fraudulous withholding of
/German assets "from the relative
/ controlr egulations.
•

baby./Holland

the

condition.

continued

\ the German' occupation

nursed/the

accu¬

in / Holland,
and the
Dutch East and West Indies. Hol¬

financial

centuries'

vestments

point of view
Holland not only was at the cra¬
dle of the American
nation, but
trom

with

other hand I

which; though in appearnot German, in;.reality are

general

critical

fruit

edge the

exaggeration to say-that

the

owned assets in the United; States

such was the case, we

/that the signatory countries will
/ take the necessary measures (in
/ so' far as they have not yet done
so) to cancel all transfers, since

the

especially
time its Treasury

following the steps of
the
healthy youngster/who so
quickly/developed into a giant.
At nearly every phase of this de¬
velopment-Dutch funds took an
active part.

only regret that. Holland
longer / possesses / Manhattan;

still

through

Java,
Equally

Borneo.

name*

; go'fes

;

These

important role in
years,

which

often in

It is

Indians

amounting

and

This affects property under a

so.

'false

;

the

difficult

during

peninsula
by

the

can

States

first

However, obtaining Man¬

"New

getting

hattan was easier, than keeping it,
and as a Minister of Finance X

■

independent states.

the

companies

oil

your

plant and

Sumatra

but

Congress

amounts

important is the efficient cooper¬
ation

•

Dutch

lpans played

bought

from

commodities

$24.00.

the

was

traders

$850 millions or 16.3%.
I
emphasize that this high
figure is not just "fly by night,"

young

should be mentioned is the

fact,

31.4%, Canada

would

considerable

New

what

the re; turn to German control of the as-'
sets in question.' The term "Ger¬
detail

stories

second with $1,060 millions
20.3% and Holland came third

with

;i r

came

loaned at the request of

York, the
17th century name of which was
New Amsterdam, or of Staten Is¬
land, at that time a plantation of
an Amsterdam
burgomaster. But

seizure is to prevent

man

•

One need not mention the wellknown

assets, 1 e. after taxes arid other
deductions, will be considered as
-.a collateral, which the
country
concerned
can a appropriate
by
preference, " of
course
reducing
..thereby its share in the repara; tions.
The principal. reason for
the

dam as a capital exporting coun¬
try, may I pite some facts of the
financial
history i^pfi/ybur-own
country?
1 i /f

re¬

turn

;

Turning to the role of Amster¬

1945, fixed. the
of the German

quotas

•

t J5l£

at that time prob¬
ably the world's richest country,

•

$1,635 millions

i SOUTHERN PACIFIC RAILROAD COMPANY
By J. A. SIMPSON, Treasurer

;

THE COMMERCIAL & FINANCIAL CHRONICLE

ista-

•

Holland and The Problem oi

•-

•

Thursday, March 21, 1946;
>

.■

Declining Interest Rates and Inflation
(Continued from

"Capital in Circulation"

push."

page

into

falls

parts:
interest

(1);; the movement of
rates arid prices during the war;

(Continued from page 1515)

medium-term

their

1495)

five

issues

the

bank-eligible

banks

and

bid

ac¬

tively for the longer-term higheryielding governments.
: i
I ;
.

general; rule.

been

that

The result has
Treasury
yield

the

curve

has pivoted down,

ly 1 at

•

the1* long-term

especial¬

end.

This

(2)
the
movement
of
interest
The general result of Treasury downward movement in GovernForeign Credits Needed
equipment/"including
in
rates and prices since the end oi
bond
yields'! has spread,
wartime reliance on the banks is ment
At the present time, with - ex¬
many
cases- simple
tools. Our
the .war;
(3) expansion of the a familiar one. From the begin¬ moreover, into corporate and mu¬
production can only gain moment ports severely limited as a result quantity of
money and inflation;
ning the sale of Government se¬ nicipal tbonds and into equities.
of five years of German occupa¬
turn by purchases abroad of the
More will be said about this ten¬
(4) declining interest rates ana
tion and devastation, and the need
curities to commercial banks rep¬
by far largest part of the raw
the inflation of capital-asset val¬
trial

materials*and other capital goods

for

imports

times the fi¬

cannot

nancing of similar purchases was

our

assets abroad.

for Holland. How¬
ever,
commodity
exports
and
shipping activities recover only
slowly.
Exports largely depend
on
preceding
imports
of raw
materials and equipment.Hol¬
land is faced with the problem of
how to pay for these imports now

after the

In normal

needed.

problem

be noted: first the

can

Dutch

possible sources

Two

necessary.

II.

United

Treasury

namely to link the acquisition of
raw materials and equipment with

tern

the

ensuing

This

conclusion

ments

our

credit agreements have

only used the second
for several reasons,, 1

far we have

originated

tion

the

Netherlands Government in Lon¬

restricted

don issued a

decree blocking all
Dutch
assets

transactions

abroad; so as to prevent their seiz¬
ure
by the enemy.
However,

simultaneously these assets were
affected by the autonomous meas¬
of several allied governments,
with the same purpose,
Conse¬
quently it was not possible dur¬

ures

ing the war to
our

assets for

the

use

revenues

purchases. Once

our

the hostilities ended and

our coun¬

try liberated, theNetherlandsGovefnment immediately started nego¬
tiations

assets,

our

bank

obtain

accounts.

the

unfreezing

including current
This unfreezing

required the fulfillment of several
conditions, partially of juridical
character.
It was -necessary to
guarantee that

unfrozen assets

would fall into the hands of per¬
sons

or firms,
which, though for¬
mally legal owners, must be desti¬

tuted

their

rights

because

their attitude during the occupa¬
tion
of
their
nationality.
The

sifting of all assets is in the inter¬
est

Holland

well

the

unfreezing country, which wishes
to

see

the purposes of its

measures

blockading
implemented by ade¬

quate action
.

on our

part. ;.:

Negotiations

State

with the /United
Government have led, in

January, to the gradual unfreez¬
ing of our assets in this country.
Nevertheless, Jhe
Netherlands
Government can only use its longterm assets abroad for the financ¬

ing of the Dutch reconstruction if
no

other

solution

can

found

for the obvious reason, that these
assets have always been one of
the principal sources of balance of
payment equilibrium.

the

1934

liquidity
mination

banks

commercial

their

and

The

time

same

urge

Treasury

sell

its

announced

commercial

banks in

the role of

definite period.

tions

between

countries

our

to act as residual finan¬

reserves

and (2) to stabilize the
Government bond market. To ac¬

ciers,

which I gave a broad outline, is
sound and the fruit of mutual con¬

complish these functions the Fed¬
to promise the best results for eral Reserve Banks were directed
the future.
The sufferings of my to purchase Treasury bills from
country Under - the German op¬ member banks at the pegged rate
pression are known to you. The of % of 1%. Since these bills
country, which through the ages could be repurchased at the same
has been a creditor of the United rate by the member banks, they
States, is now badly impoverished were the equivalent of cash re¬
and has been retarded ten or more serves. In addition, member banks
years in its
economic strength. were offered the inducement to
However, we still have important discount other Government se¬
assets.
Our will to recover, plus curities at the Federal Reserve
our good
^ name, esteem and the Banks at a preferentialv,rate Of
friendships which we have madb Vz of 1%. '
all over the world, will surely en-,
The original yield pattern held
fidence and

able

As I
your
ways

goodwill, which

seems

to succeed.

quite

in longer-term Govern¬
security prices.
As con¬

ment

fidence

the

authorities

American
Europe and in the
a deep impres¬
sion on the people of the Nether*
lands, and every Dutch heart is
overwhelmed with gratitude for
the

investors

collapse

both sides. The achieve¬

glorious

Pacific have made

such

power of Federal au¬
thorities to hold it and feared a

ordinary friends, with good

reasons on

ments

long

said, the relations between doubted the

country and mine have al¬
been more cordial than be¬

tween

well

liberation which

owe

great degree" to the sacri¬
fices and efforts of your armed
forces.
We are also extremely
thankful for the aid received from
a

the

American
liberation.

people

after

our
.

Holland is how facing a situa¬
more; difficult than it has

tion

curve,v

however, that; the

grew,,

could

maintain ' the

investors,, sand particularly

commercial banks, began to reach
out for longer-term Government
securities in order to bolster their

earnings
by
obtaining higher
yields
and
automatic
capital
gains growing out of "riding the
yield curve." Whenever the com¬
mercial banks needed reserves to

deposit

withdrawal
sold

expansion

currency,

and
they

Treasury bills to their Fed¬

eral, Reserve

Banks, as well as
certificates of indebtedness. The

"reaching-out"
process
increasingly noticeable

became
in
late
and led to a
sag in the yields of medium-term
1944

and early 1945

bank'

eligible

securities;

This

]was accentuated by virtue of

sag
the

fact

that

eager

medium-term

cided with

eliminating
bank-eligible

bank-buying

securities

coin¬

Treasury policy of
offerings • of
securities in
that

new

ination of commercial banks from

the

offerings,

continued

through August,; 1945

1941

commercial

bank

Government

securities

v.m

INVESTMENT

Members
York

•

•.
'•

?:•

Other

BANKERS

New

Leading Exchanges

INVESTMENT SECURITIES
BROKERS OF BONDS,

Private Wires

•

battle

STOCKS, COMMODITIES

Home Office: Atlanta

hundred years, a situa¬

which

she

placed
hers. '-j The

was

for

reconstruction

which

lies

ahead, the people of the Neth¬
erlands
lean -heavily
upon
the
-

Phone LD-159

resulted
of

end

this

Government

fact

holdings1

increased

rose

from

$2.2

$22.1 billion.
During
period the adjusted de¬
mand deposits of all commercial
banks expanded from $39 billion
to $74 billion, the bulk of which
expansion was the product of
monetizing the debt.
*

billion

the same

The total

demand deposits ad¬

outside

the
banks increased from $48.6 billion
in December, 1941 to $100 billion
in
August,
1945,
Despite this
prodigious growth in the; money
supply, the wholesale commodity
price index rose only from an av¬
erage of 87.3 in 1941 to 105.7 in
August, 1945, and the cost-ofliving index rose from 105.2 to
justed

and

currency

The increase in the money

129.3.

supply was largely offset by four
factors: (1)~ the phenomenal ex¬
pansion
of production, starting
from the base of heavy unem¬
ployment of labor and equipment
at the outset of war; (2) the need
of

individuals

and

business

for

money as a result' of vthe
growing 'national income; (3) ithe
public's tendency to hold larger
cash balances
because
of such
more

as
uncertainty, patriotic
motives, etc.; and (4) the exist¬
ence of direct controls on prices

things

via. price ceilings, wage ceilings,
rationing and priorities.
The Movement Of Interest

in.

Rates and Prices Since the End

of the War

which was operat¬

The process

ing to depress bond yields during
the war has been continuing in
months.

recent

With the Treas¬

of •; its

the

war.

that

the

security holdings of
rose

the

from

end

August, 1945 to $24,262,000,000 on '
Dec. 31, 1945.
Since then they
have fallen and reached $22,526,000,000 on March 6i The Govern¬
ment security holdings of weekly
reporting member banks in New
York

City and 100 other leading
$46,674,000,Aug. 31, 1945 to $49,231,000,000 on March 6, 1946,
Ad¬
cities increased from
000

demand

deposits

commercial ;■banks; rose
billion on

billion

alT

from $74

Aug. 31, 1945 to $75.9
Dec. 31, 1945.

It seems quite clear that falling
interest vates and monetization of
Federal debt have

the

proceeded

hand in hand.

even

The instrument by
which interest
rates

means

have

been

kept; low and driven

lower has been monetization

of the debt.

The continuing mon¬

etization of the debt

during the>

past several months has been un-.
sound because it has been adding
to

an already excess money sup-?
ply and has been exerting strong
upward pressures on prices. Fur¬

thermore, declining interest rates
have led directly to rising priced
of capital assets,
Both of these
avenues of; inflation will be ex-f
amined

greater

detail in

next two sections,,.

the

Expansion of the Quantity
Inflation

IV.

of Money and

'the < past'

decade - the
conviction
has
gained strength
among; many economists that In^
creases in the quantity of money
have little effect upon the general
price level; This explains why
today so many economists;are not
particularly concerned, over the
During

fact' that

are

increasing

already
excess
money i? supply;
Their reasoning is - based on the
experience of the Great Depres¬
sion ; during which
our money
supply expanded without infla*
tionary consequences. They also
.

point
to; the relatively minor
price rise during the war in the
of an enormous growth in

face

bill rate pegged at % of 1% the supply of money. It is clear,
the yield on certificates of however, that certain conditions
indebtedness held within narrow existed during the depression and
limits by reserve bank purchases, war period . which made ; it pos¬
until the past few weeks com¬ sible to expand the quantity of
mercial banks have been selling money
without v the ; inflationary
their certificates to the Federal consequences which might have
arid bidding strongly for longer- been expected.- Duringr the - de¬
term securities. Aiding and abet¬ pression the following factors off¬
ting; this process ;• has beeri the set the increased money supply:
ury

and

tificates

of issuing: cer¬

policy

Treasury

meet

refunding

and

other needs.
In

months

recent

Government

long-term

yields ; have
rapidly. * There are a
bond

for this move¬
banks have
yields on bank-

number of reasons

bid

As commercial

down. the

Governments,

nonbank

(I) thd existence of' widespread
unemployment
of Ta b o r and
equipment; (2) poor profit ex¬
pectations; (3) uncertainty on the
part of business and individuals;
and (4) low velocity of circula¬
tion of money.1 We haveJalready
noted that during /ithe iwarVthe
only moderate, rise f n,vpric£s. ,9?^
be explained by? such r factors, as

have

investors

eligible

sold ; their

holdings

and

bank-

havie -in¬

the

country with which it is tied by

century-Jong

friendship, and re¬
lied upon the understanding and
if possible the help of the Ameri¬

can

people.

huge

and

Thus, in its

UNDERWRITERS AND DISTRIBUTORS OF

;

Evidence

the

increase in' production
employment,' th^M'rieCd^f6r
money at? a higher national
creased the burden of dementi on
through no fault of
the public's ,,desirqjWfor
United States has been a loyal ally the long-term Governments j The income,
increased liquidity, ,sndy the ^ef¬
and has not spared any sacrifices, scramble for long-term 2 Vi s| (be¬
fective use of direct price ^con¬
in human lives or in material re¬ came very acute early thi^ ttear
with the expectation of a j bal¬ trols.
sources, in the great struggle just
It is perfectly clear that the
finished.
A Dutch proverb says: anced budget and the prospect of
conditions prevailing today make
a drying-up in the supply of 21(£s.
In times of distress you learn who
Added to this has been the ap¬ it unsafe to proceed further with
are your real friends.
in

tion

iyowU

debt

Government

ment.

seen

........

From Decem¬

nonbank investors.

eligible

"vi3:yj\S\

Government debt
gravitate indirectly
via unloading by

the banks

longer-term
,c

since

debt

has

monetization

Federal Reserve Banks

range. Toward the end of the war
the
decline began to spread to

bank-ineligible ' is*
as; nonbank investors sold

rates

continuing

$22,530,000,000

been falling

sues;

interest

participate in new offerings.
In
the later drives, with the elim¬

cover

offered securities to

later point.

The Treasury's desire for lower

for from $21.8 billion to $84.5 billion,
and Reserve Bank holdings of justed

The
part
Needless rCsidual: financiers.
to say the same standards are be¬ played by the Federal Reserve
ing observed in the credits obtain¬ System in war finance was two¬
ed by our, Government.
fold, namely, (1) to insure that
The development of the rela¬ member banks always had enough

within

the

deter¬

large a part
of it's
War debt as possible to
nonbank investors, and to use the

armed forces in

since

credits, as they are only to be
negotiated if they can be paid

supervision

rates

dency at

holdings to the banks in order to

ber,

debt

them, and indirectly as nonbank
investors sold previously acquired

into

was

of Gov¬

Government

drives

the Treasury

the 'market, reflecting in a large
measure the excess reserve posi¬

initiative, but it is
intended to have our private en¬
terprise assume these tasks as
quickly as possible. Our Govern¬
ment's task will then be mainly

Immediately after the invasion
of Holland, on ; May, 24, 1940, the

This

source

During the early

flowed into the banks directly

roughly the pat¬
then prevailing in

tern

in Government

Release of Dutch Foreign Assets

the

month
certificates
up
to
for
long-term
Treasury

Vz %

bonds.

initial

Our

finance

9-12

balance of pay¬

restored.

decided

the basis of a yield pat¬
running from % of/1% for
Treasury, bills and % of 1% for
war

exports.

commodity

leads to

equilibrium of

themselves; second¬
ly foreign credits, and loans* So

Prices During the War

Shortly after Pearl Harbor the

consumers'- goods, this credit
would have an interim character,

large

ernment funds.
bond

The Movement of Interest

Rates and

Apart from the purchases

duration of the loans,- which
will have td> be extended until the

the principals

source,

still have

the

from

rec-r

ommendations.

It follows that
we

and (5) conclusions and

ues;

without

the

revenues

abroad

investments

States.

credit

resented

all-time high,

unfreezing

need

afford

parent Treasury intention of re¬
financing entirely in certificates.

before both bank
be¬
confident that bond prices

More than
and

ever

nonbank

come

are on a

mand

investors have

"one-way street" and de¬
long-term

for medium and

Governments

has

been heavy

;

increase in the

There
is

strong

already

public's

far

needs.

money

supply.

evidence that it
in excess of the

The total

assets,of business

liquid

and individuals

$65.1
billion,':bri'§2% of the 1939 na¬
tional inbome. By December, 1945
in

December,

1939 stood at

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4474

Volume 163

$225.3

liquid k assets had reached
billion, lor 135,3% : of the

1945

national

total

•

crease*

in¬

The

income. |

the: total, liquid

■

asset

holdings of business and individ¬
uals as related to the current na^
tional
income
from December,
1939
to
December; <1945 /was
47.2 %; Simjlarly; breaking down
the
individual» items
in total

liquid asset holdings of business
and; individuals
as
related
to
current national income

from De¬

cember,1939 to: December, 1945;
currency
holdings
increased
81.4%, demand deposits 25.4%,
and

Government securities 218%.

In addition to the excess money

supply now held by business and
individuals, employment and cur¬
rent income payments have re¬
mained, at very: high levels and

increasing;; The Bureau of
Statistics index of non-

are

Xabor

agricultural employment, which
iell. from 121.5 in August, 1945
lo 115.4 in October, rose to 116.5
Commerce

The

December.

they have contributed to

a great
expansion of our money supply
by increasing bank-'credit, and
(2) they lead directly to inflation

the quantity of
have a very important
influence on price levels.

which changes in
money can

Declining Interest Rates and

the Inflation, of

The

securities

policy

public

relationship between

and /: real-estate

For these

markets.

Capital-Asset

Values

reasons

sound

requires the

sta¬

fall¬

tion of the public debt and a be¬

capital-asset values is direct and
As ;yields on: medium

ginning

of demonetization.
The
accomplishing these
and long-term Government secure
objectives are not easy to sug¬
ities .have
slumped under the
forces
described
earlier;
bothr gest. In general, The Treasury
and Federal Reserve cannpt take
clear-cut.

for

means

bank and nonbank investors have

and

precipitate action under existing
circumstances.
Rather, in what¬
ever action they do take, extreme,
caution should be exercised. The
authorities should keep clearly in

higher-yielding corporate
and municipal bonds.

State

As the

prices of the best of these
bonds have risen and their yields

fallen, the demand has spill¬
into low-grade corporate
securities and preferred
stocks,

have

British; and

Canadian

action

trols alone will not do the

lowering similar'short-term rates
is

commendable.

the

curbing

event

that heavy commercial bank pur¬
chases of long-term Governments
should

resumed,

fact

the

mind

over

bank

Commercial

that

purchasesof

reaching-out by banks.
3.

very

serve

there*

should

and

will

New York Stock

When

th'e

has announced the following firm

changes:

that

berg

need

for

of funding

process

erable

started.

Eva

end,

at regular intervals. Savings in¬
stitutions would provide, a large

securities.

these

public holding

general

John

easier said
to

career

Contrary

with the Girard Trust Com¬

partner in» Edward B. Smith fit

Co., where he remained until 1908,

induce much
additional
bond
purchasing by
the general public. High-powered
advertising
and ' "fancy-wrap¬
ping" devices are needed to do
the

illness.,, He

resigning in 1899 to become

pany,

long-term

probably

died at his
Pennsyl¬

Chestnut Hill,

Mr.. Jenks began his business

;

sur¬

accepted belief,
interest rates

generally

higher
will

than; done.

Jenks

Story

vania, after a brief
was sixty-nine,

This is admittedly

plus money.

home

sizable portion of the debt out
the banks into the; hands of

the

14th.

Scheffmeyer

| John S. Jenks Dead

Part

of this funding operation should
also be a determined effort to* get

McKinney and Louise T.
McKinney as limited partners has
been withdrawn. I.?; ; • /
Irving Blumenthal, member of
the Exchange, died on March 13th.

arise,
consid¬

long-term 2%s should be offered

market for

March

withdrawn

Co. to admit Edwin S. McKinney,

borrow

this

EliasSamuel & Co.

of Ralph E.

Application

part of the floating debt
be

•

for Harold

Exchange

was

some

for refunding purposes does
the

;

Privilege of Adrian A. Bendi.i
as alternate on the floor of

appears

for

;

to act

the

little

:•¥

The New York Stock Exchange

Re¬

now

Exchange

Weekly Firm Changes

Federal

borrowing

Treasury
time.-

Department's
index of income need to cite figures. The spread¬
do much to stabilize the bond
jpayments fell slightly from 236 ing price rise in bonds, stocks,
market merely by properly timed
an August to
229 in September, and -real-estate is familiar to indications of
intention,, either
Ibut then rose to 233.8 in Der everyone.
explicit or implicit, designed to
cember. On the other hand, the
In the American pattern of life
throw a little uncertainty into the
federal Reserve index of indus¬ a boom in the securities market
minds of investors concerning the
trial production fell from 186 in generates inflationary psychology
future
of
Government
bond
August to 164 in December.
not only in financiers on* Wall
prices.
-v .•*
There are many indications that Street but in the average man on
More specifically, I submit the
business and individuals are in Maple Street. It is a well-recog¬
the mood to spend their money. nized force leading tq a higher following tentative recommends'*
tions:
Department store sales have ex¬ rate of consumer expenditures.
panded sharply and stores are This is a dangerous process, espe¬
11. The rate at which member
banks discount their short-term
Striving desperately to maintain cially When the average person
at
the
Federal
their stocks. Consumer; credit in¬ already loaded with purchasing Governments
creased by over a billion dollars power and is searching frantically should be raised to a full tl%;
from August to December, 1945. for scarce things to buy.
There is no
longer any sound
reason for special encouragement
The figures on turnover of de¬
VI. Conclusions and
to borrowing at the Federal.
mand deposits show that the fate
has; Been increasing in recent
Recommendations
2,
The Federal Reserve au¬
months,
A J noticeable-; increase
The, conclusions; of this paper thorities should take whatever
has * been occurring in the re¬
action is necessary to hold the
are, that declining interest rates
demption of war savings; bonds.
have been a significant source of certificate rate firm. The Treas¬
Despite the chilling effects of inflationary pressures because (1) ury decision to retain the % cer¬
industrial
disputes,
the
huge
backlog of demand dammed up
during the war has made/labor

banks

Banks.

ury), that Government security
prices are on a "one-way street."
It is very likely that without pos¬
itive action the authorities could

and real-estate and are
an important factor in the, price
rises in these areas. There is no
equities

;

Treasury has made a
beginning in paying down its debt
by employing its large cash bal¬
ance/This appears to be a sound
policy in view of the fact that
a very large part of the securities
being retired are held by com¬

long-term
Governments have beeri, promoted
by the general conviction (in no
way discouraged by the Treas¬

driving up their prices. Declining
bond
yields,
moreover,
have
caused
demand
to
shift
into

inflation.//I/v k/ '>•-:<//•••

The

mercial

price

ings,/ however, they can play a
important role in staving off

moderate

conclusion,

monetary con¬
job of
inflation.
Along
with increased production, fiscal
action, and price and wage ceil¬

bilization of bond yields. It also' rise in short-term rates might be
necessitates an. end to monetiza- employed
to
discourage
the

ing interest rates and inflation of

sought

tificate rate in the face of recent

not

then

became

partner

Jenks

was

director of many in¬

and industrial

surance

trick.

Mr.

Bertron, Griscom & Jenks.

companies.

and

the

confident

management

that

economic

future, is bright.
Entrepreneur and labor optimism
;

exists

all

these

currency out of circulation and
similarly probable inflow of. gold
should not be permitted to build
up excess bank-reserves. Instead,

the authorities should take action
to reduce

excess

reserves.

/ /-•

Thomas In Rochester
ROCHESTER, N.
A; Thbmas is

dealing insecurities

from offices ih the Powers Build¬

ing.

-•

conditions

which provide the basis for/strong
inflationary
pressures,
wartime

;r:-

rationing and priorities have gone
by the board, and OPA is fight¬
ing what is probably a losing
I ;*4battie of the bulge.'*^ Nor should

general mortgage

view Of the underlying con¬
ditions which prevail in our econ¬

ply

Great Northern Railway Company

Heeded,

omy

ri$75,000,000

we forget that Federal taxes have
already been cut in a period
when
high
taxes
are
sorely

today, the excess money sup¬
is exerting strong upward

Dated January

1,19^6

pressures on prices. Further monctization of the debt should be

Due January 1, as shown below

;

stopped immediately and a deter¬
mined effort should be made to
mop up some of the excess supply
of money. More will be said on
this point in recommendations at

Interest

payable January 1 and July 1 in .Yew York City ,

The issue and sale of these Bonds are

■

subject to authorization by the Interstate Commerce (Commission,

the end of the paper.

/Before leaving the subj ect of
quantity of . money and in¬
flation, it. should be noted that
many economists who shy away
from using quantitative monetary

the

$40,000,000—2% % Bonds, Series P, Due 1982-Price 101.14%

$35,0OO,OOO—2s/g% Bonds, Series Q, Due
(Plus accrued interest in each case)

controls at the present time either

Ignore

the

inflationary

existence

pressures or

strong

think of

,them;as, merely a very temporary

%v>x

'v'v'"

"'v.

1 -5 L-*""-1

'bJ

;

•

*■■■/£<

'f-.

^' A

Copies of the Offering Circular may be, obtained in any.State in which this
announcement is circulated from such of the undersigned as may legally

jproblem ;?whichexpanding. pro-

*^dctidh ;"'wril -qiiickly* solve.

Asthe stag-

^umin^k^he^/va 1 fdltyof

offer the Bonds in compliance

with the securities laws of' such states -

^giatmpjthe^if, they anticipate, that
l<jur'major!economic problem will

^^oh'j^iiih^bilf -deflation

and un| ^pioy^pt^us "reasoning" flies
in the face of

urns

vw,

•.

: deferred

HARRIMAN RIPLEY & CO.

promise" to maintain in¬
and

consumption

omy,

therefore,

"tight" for
•

and

least. Our
can

econ¬

consi^ergfei^^priod

may very

well n-bg iqqe

KIDDER, PEABODY & CO.
.

£% r\%

SAfflf& CO.

MELLON SECURITIES CORPORATION

STONE & WEBSTER SECURITIES

UNION SECURITIES CORPORATION

ex¬

^ be ^ very

(

SMITH, BARNEY & CO.

penditures at record levels for the
next few years at

GOLDMAN,

Incorporated

.business and individual demands

vestment

THE FIRST BOSTON CORPORATION

BLYTH & COINC.

large amount of

^evidence?f concerning

which

MORGAN STANLEY « tfl/*
& CO*

March 81 > 19iS.

''i

ah offer to buy the securities. The
of tfie Offering Circular which should

offering is made only by means
,4 J'
be read prior to purchase of the Bonds«.

;

Y.—Sherman

offer td sell or a solicitation of

This announcement is hot an

<o|;the pessimism of the Thirties.
Added

The probable return flow of

-V-<

general rule in place

CORPORATION

■

THE COMMERCIAL .& FINANCIAL CHRONICLE

1518

New York
Securities Salesman's Corner
BUTTON

By JOHN

Proposals for Preferred Stock Protection

(Continued from page 1499)
essarily complicated or if the vot¬
ing power is unnecessarily or in¬

equitably distributed,
^

Lessons

•

this.

are no

always learned from books or from

columns like

obtained as the result of plain oldWe learn best by doing. : Here's an inter¬

Some of the best ideas are

fashioned trial and error.

esting viewpoint on security merchandising we
while "doing."

„

discovered last week
.

calling upon another dealer, trying to interest him m
certain seasoned, over-the-counter stock which we
now like.
During the course of our conversation he remarked, "I
think you're right,, at least this stock looks more attractive to me
than same of these new issues that are coming out today.
Here at
We

with a pretty fair record of earnings,
plus a management that seems to have had experience in weathering
.some bad.years and holding its own against competition; and besides
there seems to be enough brick, mortar, machines, net quick, and
orders on hand to justify the present capitalization and the current
market valuation of the stock."
Our dealer friend then went into
a dissertation upon what he thought of some of the present day crop
"that as
far as he was concerned it was his opinion that many of the recent
common stock underwritings were far too speculative for his con¬
servative clientele and that he didn't want any part of them/'
of

new

issues and ended his remarks with the observation

"^"7, Then he

his method of procedure when it comes to new
issues.
This dealer, like, many others, has made a practice of care¬
fully selecting the securities which he submits .to his customers.
During the past two decades.he has kept his clientele satisfied. That's
been a big order—to successfully maintain principal, and provide
income, for a group of very different individuals, alt with particular
investment

gave us

needs

and; problems; and

during years of depression,

regulation, and war.

Finally, an Act (S. 1.1759Pt. 1945) amending Section 37 of
the
Stock Corporation
Law in
conformity with the provisions of
the foregoing bills/ V
J
Amendments Long Required

that have been an¬
nounced in the "Chronicle," or the various services.
His first con¬
sideration in looking them over is not whether or not they are likely
to be oversubscribed (most of them are), but whether or not these
offerings represent intrinsic values.
Will they be suitable for his
clients, is the major test?
If not he doesn't give a rap if the issue
looks like it will be oversbscribed

He said he
wasn't interested in EDUCATING HIS CUSTOMERS TO BECOME
a

hundred times over.

SHORT-TERM SPECULATORS BY OFFERING THEM SOME
PORTUNITIES AT FREE

OP¬

RIDING, WHEN ALL HIS LIFE HE HAD
EYES, SO THAT THEY WOULD

BEEN TRYING TO OPEN THEIR

ABLE

; An act to amend Section

been

TO APPRECIATE

THE

DIFFERENCE

BETWEEN

IN¬

VESTMENT AND CRAP SHOOTING.

required.

long

enough,

some

attempt

amend

this

It has
Curiously

ago,

years

lative

made

was

section

legis¬

Stock

the

Corporation ; Law
from
which
springs the authority to issue pre¬
ferred
and
common
corporate
shares in the State of New York,
to provide that no stock should
be designated as "preferred" un¬
less it was accorded a prior pref¬
to dividends and assets.

erence as

By the time the suggested amend¬
ment came out of the Legislature
it

had been

"no

emasculated

dividends

entitled
the distribution of

designated
shares."

read

which f are

preference

shall

common

stock

assets

Obviously, this provision

afforded
holder

Each week he checks up on the new issues

j ?

;

were

least you've got a company,

;

;VI.

looking into a

,thq

preferred

protection

stock¬

against

the corporate promoter.
Just what

the

New

has been

York

needed

statute

for

many

is some regulation and some
restriction that would insure that

years

the purchaser

of preferred stock
was getting a stock that had a real
preference and.that the term "pre¬
ferred"

not

euphem¬
ism designed tol mislead the in-/
was

mere

vestor. Tor these many years, no
such

provision has found its

way

into the New York State statutes

Of course, he explained, this meant that often times he could not
pick and choose the issues that he liked, since he refused to allow
his firm to become a dumping ground for all the trash, as well as the
good stuff, that certain underwriting firms and groups have been
''pouring out during the past six months. But here was. an advantage
/ that he gained by so doing., He said, if he liked an issue he went
out in the open market and bought it (if the price was not too high)

and the present

attempt
stock

Hammer Bill is an
define a preferred

and

definition

that

incorporate

into

the

Thursday March21 ^ 194$

law.

common

stock

that 50%

of net current earnings

may

that

employed,

after

dividends

the

dividends,

except

provided

payment

such

coverage of not less
than 150% may remain.
Obviously
if
initial
; coverage
protection
a

should

be
afforded a preferred
stock, that protection should not
be vitiated by , permitting subse¬
quent. common stock dividends,
;

Requirement of Cumulative

for preferred stock and re¬
quires that the preferred stock be
permitted to elect at least two di¬
vote

rectors

This is hardly sub¬

ject to

can

earnings

cumulative

of the

use

the

is justified,;.it
real preference

be only by a

dividends

use

the

"preferred"
and

distribution

dissolution. A nondividend vitiates the
term

times

and

the I

bution of the vote and in this

re-

spect follows the pattern set in the
Anti-Trust Law, >;
;v
American Bar Association

be cumulative.

term

all

years' default in div¬
idends, to elect a majority of the
directors. The Public Utility Hold- ;
ing Company Act likewise re¬
quires a fair and equitable distri¬

Dividends

The, Hammer Bill provides that
dividends on preferred stock shall

cavil.

event of two

"preferred",

dpes any qualification ot/the/re*
quirement.
The final provision in this bill
is that in the event of failure to

' Proposals

The

proposed
Federal
Corporation Act drafted by the.
Committee on Corporations, Bank- ;
ruptcy and Mercantile Law Sec-I;!
tion, of the American Bar- Associ- ;;
ation, and which is. intended as a •
model in lieu of the outmoded. "
uniform corporation; act, provides
new

for voting privilege for all stock,

regardless of class, and for cumu¬
lative voting, and the report of the
majority recommending that act ;
suggests that preferred shares be. ?
given the right to elect a majority .

pay one
year's preferred divi¬
dends, that preferred stock shall of the board of directors in the^
have voting power; that the vot¬ event that preferred dividends are
ing power shall be equitably and ih:Arrears/;;;;p^li^®^
proportionately " distributed ; and ; I Consequently/ in the respects *
election of directors shall be by above stated, the Hammer bill has *
cumulative voting.
These provi- ample substantiation and respect¬
sions; tie in with the amendment able authority andishould find ;
to Section 55 of the Stock Cor¬ support from the reputable Tn-y 'I
poration Law which provides that vestment houses in Wall Street •
-

directors

elected

interest

any

verse

ferred

shall

not

have

affiliation; ad¬

to the interests of the

pre¬

shareholders,

and in the
disqualification shall be
removable. Here again the Ham¬
event of

mer

Bill makes

effort to

bring

the law into line with sound pre¬

vailing; security practice.
:•
'
An analysis of outstanding pre*
ferred shares of sound companies
indicates that

number

of them

grant the preferred stockholder

that without

requirement

or sane-

tion of law conform to its provlsions when putting out new se¬

curities,
come

and

which

the aid of the

should

j
1

wel-

Legislature in

•

policing the investment business.

•

Preferred Stock and Change" of
Capital Structure
The

second

important

reform

designed ' to; be: aqcdmplished/by
this series of bills is to be found
in the acts which propose amend¬

'
.

ments to Section 61

and 62 of the 1
regardless of default. How¬
ever, the general practice of which General Corporation Law. By the
thec following are examples: Allis proposed new subdivision (c) in
Chalmers Mfg. Co., A. M. Byers present Section 61 of the General V
and then he sold, it to his customers as a value that1 was worth the
Corporation Law it is provided •
'money and suitable td their needs, and he didn't give a rap as to they
do not need protection ^0©-;,; Consolidated Cigar Company, that where ^preferred dividends ;
whether or not they bought it a point or two higher than the original
Match"* Co.,
Endicott
againstthe honest
investment Dpunond
are; in ^default and the corpora^ /
offering price—and they didn't care either. As far as the free rides banker; .They, and the honest in¬ ^Johnson Corp., Flintkote Co., Hershey-Chocolate Co., Jewel Tea Co., tion seeks to effect capital struc¬
were concerned, he laughed and
said, "sure we've taken plenty of vestment banker need protection,
heny. Corp., United Dyewood ture changes which affect such /
one from fraudulent sales and the
them ourselves, with, our own money and with our eyes wide open;
past due dividends without mak- f
and we've given some of the .boys on the sales force a whack at a other from fraudulent, competi-' £3Irp., grant a vot£to the preferred
provision for full payment ;
-^stockholder once./,.there ; is a de¬ ing
few of them.
Of course, we all
dump the junk just as soon as it tion, "against the dishonest stock,
thereof, the Supremo Court shall ;
looks like the ride is over." "Did you ever stop to realize," said ho, promoter. ~»
? faultJor a specified period, genhave jurisdiction to determine the
"that the real good stuff is so much in demand that the little of it
3glBy. four quarterly periods.
Ratio of Preferred Stock
*^<mseqderitiy//the prpv^ionsi pi fairness, feasibility and equitablethat you get, is hardly enough for your customers
anyway, and the
ness of such proposed changes and
The proposed statutory provi¬ sthe Hammer Bill providing for a
other stuff—well, let anybody, that wants to fill up their customer's
of any amendments thereto pro- ;
sion that a preferred stock - shall ;^ple^6f the preferred proportion*
lock boxes with it do so, and at their customer's own risk."
posed by the corporation ; or by
Seems to us this dealer knoVrs what he is talking about. There really be a preferred stock is fur¬ ^Mwto the amounf/of capital con*
not less than I % of the preferred :
:
is only one way to protect your customers—and that's protect them. nished by the provision that such <4ributed by the preferred, once
drere* have been four quarterly stockholders or by any preferred
They can't do it themselves through reading a prospectus—they don't stock shall have asset coverage of
200% immediately after such is¬ |®hits, is neither radical nor stockholder who shall have owned I
even understand why you have to send them one in the first
place—
his stock for not less than sjbc
suance. That means that not more
and besides who wants to read all that junk—surely not an investor.
months.
But those of us who are selling securities SHOULD READ THEM, than one-half of the capital of a ^However, there are examples to
By the new Section 62-a, it is
and after we finish with some of them we should raise our eyes to newly organized corporation can ^pfdund of provision for; the pre¬
vote being
be represented by preferred stock. ferred
nullified by provided that f when Tteferred
heaven and pray—someday we may be in heed of those prayers.
In other words, a corporation that ^ecanmon stock management con¬ stock; has been', in default for a
starts business with a capital of trol/and it is for the proper pur- period pf
not
less than
five :
or
for
a
period
of
$100,000 may issue $50,000 of pre¬ Jqse of preventing ; the right' of years
r

attempt to make the law accord
with the present legitimate invest¬
ment practices As. is the case gen¬
erally with purchasers of .stock,

vote

ferred

Lipe-Rollway Corporation
Convertible $1

stock.

Preferred Stock

$50,000

common
an

asset coverage of 200%. This is in
line with prevailing
legitimate in-s

Preferred

vote; from becoming, a

not

gesture that the Hammer bills In¬

the

clude the provisions for cumula-

3§el voting of *

director who; is

vestment banker practice—a prac¬ •^iot disqualified by common stock
tice that has been formulated and prother interests from represent¬
It should be
put into effect by those in Wall ing/the preferred.
Street who know that the stability difficult to find fault with such a

Class "A" Stock
Circular

and

The preferred then has

of their

request

own

future business and

provision either from a standpoint

good will lies in the protection of. bf principle or
the, investor, for the future; ad¬

of practice.

Patterned After Federal Laws

Herrick,Waddell

Co., Inc.

55 LIBERTY STREET. NEW YORK 5. N. Y.

■

:HV

<5 i'

vantage not only of the invest¬
It is to be noted, that none of
house; the seller, or the pre¬
ferred stockholder as purchaser, lEheSe provisions are novel; that
none of' them are untried, sihee
but of the sponsored
corporation
itself. An analysis of sound pre¬ these provisions of the Hammer
ferred stock offerings by legiti¬ SRLhave be£h modeled on simi¬
mate
Wall
in the Federal
Street
investment lar provisions
1
'
~
houses indicates that investment statutes.

ment

Fruit Growers

Inc., Com*

Arden Farms Co., Pfd. SC Com* 'SSSS

bankers'

voluntary

preference

limits preferred stock below the
50% permitted by the above stat¬
ute.

Fullerton Oil Co., Com*

;

might be noted that presently

in Florida
are

WagenseilerSDurst,Inc.

ferred stock of

Members Los Angeles Stock Exchange

SO. SPRING ST.

Montana there

outstanding pre¬
corporation shall

not exceed two-thirds of the actu¬
al capital paid in, in cash or
prop¬

TRINITY 3761

LOS ANGELES 14

and in

legislative provisions that the

total amount of

erty.

Teletypes LA 68
Quotations «nd Information

The Hammer Bill proposes

all Calffornfa StewWioa

this initial ratio,
f

that

shall
subsequent; to
coverage

three

years

when

corporate structure is unduly or unnecessarily
complicated or if the voting power is un¬
necessarily or inequitably
dis¬
tributed, the Supreme Court shall
have jurisdiction to receive! from
not less; than 1 % of the preferred
shareholders a plan for the recapi¬
talization/reorganization,: dissolution or liquidation of said corporation; and that after hearing,; the
court shall have power to require
the corporation to take such steps
as may be
necessary to eliminate
,

the unnecessary

complications, in

/
;

J
;

'
;

;

I
•

the corporate structure/ to distrlb- 5 ;
ute the voting power fairly and ;

among ;;; thd ! security >
to comp^i; Corporate :
give'effect thereto.jj
ized" corporations to include/.m I Here again we find a crying .
their charters provisions; against need for remedy which the bill is ;■
issuing non-voting stock and pro¬ designed to supply. Lawyers and
familiar
with ;
viding for the fair and equitable stockholders 4 are
distribution of voting power. The existing
situations where pre-1
ferred stock was issued either in
Federal Investment Company Act
of 1940 makes it unlawful fop a bad faith (as in the case of nuclosed-end iftvestment company to merous utility companies during ^
to issue a Itoior stock unless it the
'20s,' where the preferred •
has an asset .coverage of at least shareholders' investment consti- s
200% ; restricts ; the; payment1 of tuted the entire -investment and
subordinate stock; dividends t un* ttie common stock ; represented
less such coverage is maintained; mere water) or where the pre- *

American

than

less

the Nfa^opal
Bankruptcy Act requires reorgan¬

Chhpter"SK~ of

not be, dissipated organization by the declaration of requires cumulative dividends/"a

equitably
holders

and

action to

THE COMMERCIAL & FINANCIAL CHRONICLE

f Volume 163 7 Number 4474
faith but with

over-optimism that

statute constitutional but

constituted

invitation to equal¬

out

was

the: wisdom

ly4 dire "results.
become

common

find

ness

pointed

not passing

Jos. Minelree With

Dangers of Governmental

upon

fairness of the leg¬

unfair¬
fraud, - the

Sfeiner, Rouse & Co. ;

and that short of

islation

In both of -these contingencies,

it -has

that it

1519

tantamount

Concentration

rt Under these. Circumstances, ex¬

perience has demonstrated that
the preferred stockholders are and
have
been/ helpless—so
helpless
that an intolerable continuance of
default without remedy compels

accept whatever plan of
readjustment the common stock is

them

fecting past-due cumulative pre¬
dividends.

stock

ferred

tne

Suat the in¬

companion bill he vests in the

Court / power,

preme

stockholder himself,

stance of the

compel a fair, feasible and
equitable reorganization plan in

without which

people

with

205
of

Co.,

Rouse

Steiner,

Carondelet Street, as Manager
the bond
Mr.

department.
has

Minetree

since

He has

1926.

the

in the

been

department of the local
Merrill Lynch, Pierce,

trading
office

been

securities business

investment

Republicans ^and Democrats; peo¬
ples of all stations and political
faiths.
But they are yet too much
depending upon the Congress, 7

Fenner & Beane for many years.

condition, recognize a com¬
mon danger and a
common duty
to
bring
to
bear ; our / united
strength in a determined effort
to save our Democracy from de¬
struction by ourselves.
'

main free. The people are coming
to
realize
what has
happened,

ration in

Prior thereto he
Read &

with Dillon,

was

Company, Riter & Com¬

and the First Boston Corpo¬

pany,

our

preferred' dividends
The powers of the Congress are
have been in default for hot leSs
not what they used to be. Largely
prepared to offer, ; < ;
* u 7/
than five years or in the event of'a
because of,this concentration, even
lesser period of'three■ years, pro¬
the policy-fixing and legislative
Buying In of Preferred Stock
vided the vote is unfairly distrib¬
power, the; most basic of the es¬
These situations have put a pre¬ uted, considering the financial in¬
sential powers of the Congress,
mium on the corporate practice of vestment remaining in the com¬
have largely been shifted to the
i
buying in preferred stock at de- pany/of "the respective Classes of
executive agencies and organized
preciated prices without* notice to stock.
minorities. The time of the Con¬
7 the main body of preferred stock/ Here again,
precedent is found gressman is now taken up largely
/ holders and to the further abuse of
in Federal statutes for reliance
as gorbetween for his constituents
:
such. surreptitious purchases by
upon our courts for supervision and these
agencies, writing in¬
officers, and directors of the cor- and
control
of
reorganization
numerable letters about their mat¬
:
poration.; To- meet, this. abuse,
plans, and we find ample: prece¬ ters, .with little time left for at¬
Senator Hammer has introduced
dent for concluding that such ju¬
tending to even the most impor¬
the amendment to Section 69 of
dicial^"s^ervision breeds saluto^y tant llegislative. matters, and al;
the Stock Corporation Law proconsequences. Investors have wit¬ most no
time for the duties of
viding that no corporation shall nessed a radical increase of values
Repurchase apy shares of default- of .utility securities largely due to statesmanship at a time when
pur circumstances require of us
ed preferred stock .except -after 30
the authority; vested in the SEC fo
the highest type of statemanship
days notice of intention shall have
eojnpel fair plans of reorganiza¬ ever required, perhaps, of any
been given by mail to all pretion of utility companios with pre¬
people.
There is practically no
ferred stockholders; of ^record and
ferred dividends in default and
j public > advertisement in, at le^sf SEC enforcement of .its authority opportunity for the Member of
one daily newspaper, the notice, to
Congress to be home and explain
in the courts. * They have wit*
legislation and defend his posi¬
state the amount available: for
nessed many examples of healthy
'. such purchase or purchases and
tion.-Clearly this is the people's
reorganization springing from the
requiring that such purchases are Federal- courts' exercising their job.
the event the

P. Minetree has become associated

sciousness,
personal
and
party
considerations,
and
instead • of
pointing the finger of accusation
at each other, admit each to the
other a common responsibility for

re¬

can

LA. —Joseph

NEW ORLEANS,

-nothing to • pro¬
where, * by - reason of
tect the vested right of the pre¬
(Continued from page 1501) .7/
business
losses,
the /preferred
ferred shareholder. To meet this
extravagant, wasteful, inefficient, nel, ahd the unnecessary expense
stock has come to represent the
situation in one .of this series of and
by its nature the instrument¬ of the Federal and State Govern¬
entire equity 'capital of the cor-:
bills, Senator Hammer undertakes ality of favoritism,
tyranny, op¬ ments working at the same job be
poration while, with the sole vote
to vest in the Supreme Court juris¬
pression and corruption and the eliminiated; and also tender my
residing in the common stock, the
diction to determine the fairness,
destroyer of the self-reliance and services
latter, representing 7 no/ financial
to.; organizations
and
feasibility -7 and equitableness Qf self-respect
and
governmental
equity, is yested with solemangroups of private citizens who are
any proposed recapitalization af¬
capacity of the people,. qualities willing to lay aside class con¬
agemeni and entire , control.
> situations

could

courts

New York

leans

Traders

Security

tion and

member

He is

City.

the

Vice-President

Or¬

New

Associa¬
Bond

of the

7:7/;

Club of New Orleans.

Boys Outnumber Girls at Birth

Will It Be

Boy

Girl?/More Likely,

or a

Boy

Male births outnumbered female births in the United States in
each year

since national birth tabulations have been available, Di¬

rector J. C. Capt of the Bureau of the Census,

announced last month.

merce,

.■

Department of Com¬
'

499/A The

1944

highest male sex ratio
birth—1,060 males per 1,000 fe-?

males—was for 1925. It
to

manner

pursuant vto tenders after, reason*

Bankruptcy Act.

whhinf the /comprehension: of the

able
7

;

opportunity to submit tenders
given to all preferred stockholders
and likewise providing that; po
officer or director shall purchase
any

Advantages of Amendments

nize not. alone the effectiveness of

tion
their

vfk

if »$• s

;•*

•

Reclassification of Preferred Stock

•The last half-dozen years have

Witnessed frequent, corporate r<efforts to cancel past-due cumula-

;

tive. dividends on preferred stock
by legai means. These corporate
expedients have, found a tortuous
way through the courts/ In New
York the Court of Appeals found
statutory authority lacking for
-

fi¬

itself, to the investors and
brokers and bankers spring¬

his ability to

unsfrrjplify things.

in intrastate business some meas¬

ever they may be worth, should
they be willing to make an effort
regain their sovereignty and

The board of directors of Har-

Co., Incorporated,
New York \ City/
R. Eppel

William

that

announce

has been elected Treasurer of the

Company, and that Oliver E. Seibert

Assistant

elected

been

has

Treasurer, succeeding ; Mr; Eppel
in that position. /
-7.
J :
,

Mr. Eppel entered the

ment

banking

National

4 York

that.ha^ been assured to them by
Federal statutes.

appointed, unsupervised,

in 1917, ahd joined the staff '
Co., Incor¬

porated at its organization in 1934.
He

appointed Assistant Treas¬

was

in 1935 and Assistant Secre¬

urer

Reynolds & Co., 120 Broadway,

person-

New

York

tary and Assistant Treasurer in

York City, members of the

New

Stock

that

nounce

Exchange,
C.

Thomas

1938.

an¬

Cherry,

the

past he was with Lazard

Freres.

Willet

C. Roper, who has

is continuing as Secretary of

urer,

the Company.

only

endeavor

his

that can properly be ef¬

way

This is under
an

type of in-. fective, of increasing state control
debtedn'ess and the New York and /decreasing / the necessity, of
He recognizes
Legislature amended Section 36 of Federal control.
the Stock Corporation Law to per¬ that New York is today the finan¬
mit two-thirds of the preferred cial center of the world;: that the
shareholders to consent to reclas¬ New York Legislature should lead
sification of shares in such a way the way in assuring investors pro¬
as to eliminate unpaid cumulative
tection \ when
purchasing and
preferred dividends", i The New holding the preferred stocks of
York Supreme Court held tne New, York corporations.

7 7

circumstances to be construed as

offering of these

SecyritTte for sale, Or as

offer to buy, or as a solicitation of an offer to buy, any of such Securities«

•

The offer is made only by means of the Prospectus.

200,000 Shares

Central New York Power

Corporation

Cumulative Preferred Stock, 3.40% Series
,

•/-•/

' t,-

Y \

"k "

Lehigh Valley Goal Corporation
Plan of

Recapitalization

0100 par value)
77;'7''7';7v."■
: ,.77'-/'

;-j

<r. ■/:■

7 '.-77••--•7:// '•

-7

Price $101.50 per

The steps in the Plan , of Recapitalization, dated December 31,
7/1945, of Lehigh Valley Coal Corporation requiring stockholders'

mnd accrued dividends from March 1,194$

7/7

action

%
',V

yfett approved by the stockholders ;ori March 20,/194677The
A Corporation has taken appropriate action to declare and make the
•/PIan>||e^iye on March 30,d94p, dnd has fixed that date as the last
/day prt which holders of present Preferred Stock may deposit their
stock iinder the provisions of the Plan. Only those holders of present
JPYe^rred^Stock who hayd deposit^ dieir stock under the Plan oft
,/or before March 30, 1946, will be kntiticd to receive for each share;
i
of such stock so deposited one share of $3 First Preferred Stock,
/one share of $.50 Second Preferred .Stock, one share of Common,

J',

"* '

-7

v. ^

A 7 I

* *

-K

Copies of the Prospectus may be obtained from only such of the undersigned
legally offer these Securities incompliance with the securities laws ofthe respective States, 7

•:7,7-•

;"":'7.7.' 7 '/>/'77/ 7/.'

7.7 ;;; //■■';'

'V77.■

"- Z

-7:/

77 ' /'

MORGAN STANLEY & CO.

Stock and $7.50 in cash.

/*7'AA77;7-f

requested to present their,
stpek certificates and cash
-' promptly on and after Monday/April 1, 1946, at the office'of either
V the New York Depositary (J. P. Morgan & Co. Incorporated) or
-V; the Philadelphia Depositary.(Drexel
&-Cop..77, 7
>7
»'V

Holders of Certificates of Deposit are

.•Certificates for exchange for the

y/-"7 777/7
March 21,

1946/;

;;7;

./Mnn /or.

new

-' lihkjh- valley coal

corporation

By W. J. Burton, Secretary

•

ir>r,

1 f.

■'

AI »•"/•■ ■•/

■

THE FIRST BOSTON CORPORATION

BLYTH & CO., INC.
-

*■

•»

GLORE, FORGAN &
CO. GOLDMAN. SACHS & CO.
^

MELLON SECURITIES CORPORATION

"7<''-'r'-:
77--V//-'/
March 91,1$46. ■. ';
"
'

•

pre¬

viously beeii Secretary and Treas¬

Jr., is now associated with therm

strengthen
the New York- corporation law in
these respects, Senator Hammer
makes a substantial bid, in the
In

the

Company of- New

City

of Harriman Ripley &

Reynolds & Co, Adds
Thos. Cherry to Staff

1915.

with

associated

became

invest¬
in

business

operated under Jaws enacted
by the Congress instead of largely
by directives emanating from an

ureof the control /and/protection

females.

Effective at the expiration of the

present Congress, I tender my
services to the States for what¬

the cancellation of this

males and 69,926,450

organizations /and //recapitaliza¬
tions. In these respects, the Ham¬ Reestablish their/'power, strip the
mer bills seek to give the investor
Federal
Government
down
to
in securities of companies engaged Federal business so that it may

*; r

the

corpora*

thereof.
a*..

but

advantage to the

and

ing from judicially supervised re¬

purchase/such stock ait the price
paid by such officer or director

administration

nancial

the/event of violation, the7corporation should be entitled to re¬

legislative

their

shares of preferred stock after

such default except upon 30 days'
notice so given by, mail, and in

provisions

such

citizen. That can be done
but not by that sort of book writer
whose claim for genius rests up¬
average

Wall Street has come to recog¬

riman Ripley &
63 Wall /Street,

of the continental 7United States,
including armed .forces, overseas^
as of July 1, 1945, shows an al¬
most equal division of the sexes—
with 62,539,673 males and 62,513,464 females.
However, the esti¬
mated
nonwhite
population
comprises 7,155,308 males and 7,412,986 females. For total popu¬
lation, the division is 69,694,981

The most important basic thing
that we how need is to be rid of

powers to require fair, feasible
discriminates and
equitable plans of reorgani¬
against any preferred stockhoid- zation under
Chapter X of the mythological tales as to the origin
ers but that the
same • be made
of our Constitution, and bring it

'
;

down

The estimated white population

basiS which unfairly

was

1,052 males per 1,000 females

in 1936 and 1938.

iri

Eppel Treas. of
Mammal Ripley Co.

The

made

ratio at birth for^-1,056 males per 1,000
7

sex

was

females.

not

2,794,800 live births registered in the United States in 1944,
1,435,301 and females 1,359,-

Director Capt said that males numbered

SMITH, BARNEY & CO."

7'.7;./7: v//• 7"77'•/77.,7"7 ;,'/'>7/7:77\ 7v7/777 77:'77; •''' 7" 7■'
;
;'7.7.^7;7/7;; /7./77 7/^ 77; .7 ,7

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, March 21, 1940

Where is Organized Labor Going?
continued from page 1501)
which he presides, the A. F.

over

BRUCE

of L. has ceased to be

WILLIAMS

tive force;

Sound credit standing is hard to establish and even more diffi¬

y.;

Nevertheless by the grace of the firm, constructive

cult to restore.

assistance of the Dominion Department of

Finance, the general down¬
rates, and the opportune wisdom of Premier

In its

construc¬

^ersisteritoppb^

sition to: any reformation of the
labor movement or any
program
to

of "abject cowardice" and
yielding to the "arrogance" of

States

industrial

leaders.

Phil

Muray in his right mind
would, not remain the „leader of

organizations

which

internal

of the future.
I think the
day of labor dictators is passing,
But if I am wrong, and it is just
dawning, I will recommend John

wave

Lewis

as. a

Dictator No. 1.

vince

Canadian Securities

Alberta

has

been

tri¬

umphantly restored.
•
Now, however, yielding to

po¬

litical pressure from the extremist

wing of the Social Credit party,
Manning has just intro¬
duced in the Alberta Legislature
a
bill, now in its first reading,
which would give effect to the
Premier

law

-bonds.

executed

orders

translated

into

proclaimed,

the

event

attempt

any

treal and Toronto Stock

the bill

and

even

^ institutions) on the Monor

the

unex¬

the part of a prov¬
monetary manip¬

ince to resort to

net

ulation.

New York Prices, |

Despite the inevitable, failure of
provincial attempt to tamper
the
currency
laws it
is
nevertheless regrettable that the

any

Direct Private Wires to Buffalo,
j.'ih;?
v'

Toronto and

P. S; £

with

■ -•

Montreal

;A ■ A':: S': AAAASS ''

Domdiiox Securities
GrporatioU
40

Exchange Place

New York 5, N« Y.
Ball

them brieflyi
The A, F. of L.

better, the last of the Vikings! He
is a swashbuckling exploiter of

clinging to worn-out slogans and
methods—a gang of labor politic
cians maintaining a labor machine4
as
clumsy and outdated as the
old: guard
Republican machine.
Lewis will rejuvenate it into more

Association

rers

the

Manufactu¬

side

management.

industrial

■

William Green, still clinging to
the Gompers policies, but
engag¬

ing in competition with the CIO
the

monetary

pected happening, the Dominion
Government will effectively block

(for dealers/ banks and

Exchanges,

wonderful

it will be
submitted to the Supreme Court
of the province.
Consequently it
is inconceivable that the plan will
ever
get beyond this stage, but

external and internal

Stock

and

before

all classes of Canadian
H

from past ages—an old-fashioned
buccaneer or, if you like the term

System TeletypA NY 1-702-3

Alberta G o ve mm en t
lightly
jeopardize its current, fortunate
position; so recently and precari¬

ously attained. In the dark days
depression there was every
excuse to clutch at
straws, but in
these days of prosperity and
high
prospects the specious schemes of
the past can be resolutely aban¬
of the

doned.

Social

has

-Credit

given

Province of Alberta good
ment

the

govern¬

baseball bleachers!

This treacher¬

revolutionary group is sup¬
ported by a much larger number
ous

unconscious

who,

though

fellow

travelers

would

reject

that the

amusingly

scheme

GOVERNMENT

can

cussions of

PROVINCIAL
I';-

■

cause

impractica 1
political reper¬

far-reaching nature.

Prosperity in this province with

'4-

-f'

MUNICIPAL

its

wealth

sources

undeveloped

- re¬

has convinced its business-

minded

population of the

neces¬

sity of financial orthodoxy.
The
experience of having to forego
logical development-for the sake

CORPORATION

unworkable

trine is

j CANADIAN STOCKS

too

poltical

recent to

long

tive

miner,

leaders

INCORPORATED

wish

present

live

•'
-

..V

J* ■>

name'

it will be regretted that

stalwart

TWO WALL STREET

advocate

orthodoxy such
NEW YORK 5,

N. Y.

party
to their

of ;v

former Provin¬

cial

NY-1-1045

them not :as

Treasurer

elevatedly retired to the

4
reactionary;

violjent, ruthless exploitation of :;
public for the benefit- of. a
He will get some real gains
for the workers, but lead them
the

than wealth. He doesn't want any

government to restrict him in
gaining or using power.
That's

why; when John stands up -before
group of business autocrats and
expounds his philosophy, v their
eyes glisten with sympathetic af¬
fection, they turn to each other
and say, "Really, after all, John
Lewis talks our language.
We
ought to be able to get along with

him."

•

They are right. They can get
Slorig with him. Alt he wants is to
work with men who will pursue

in. their
likeable jcdn^-'

Main; Were great men
bonds * but

prices; changes day, and

negligible and free funds
motionless at 9%%. 1
1
j

many:were

panions when not working at their
In this day, there- are men

trade!

result of considerable dis¬

who raid the stock markets, men

cussion concerning the merits of
registered /and unregistered ; in¬

who; go out to capture business
enterprises and loot them> and
labor leaders, who play the; same

ternal bonds there

realization
any

large

financial registered

been
RECTOR 2-7231

class.

ternal
were

erated and supported. Now that it

the

a past master .of; in¬
vective and vituperation and uses

them freely because

their self-interest with unblushing
disregard for other interests, with
it is evident that he men who won't try to
hog all the
is being made the stooge of the
plunder, but will divide fairly
most unscrupulous foes of, our with their fellow
buccaneers and
own household.
Phil Murray in deal
generously^ with the verewj&!

has

that

He is

to his nature,

appears

his magnificent vocabu¬

he hurls

frequently, in violent and fraud¬
attacks: Which Care ; foreign

were

Social

men, whether members of
organization or the .hard¬
hearted employers against whom

his

ulent

eschewed unor¬
thodox procedure it has been tol¬

A. Ew AMES & CO.

Murray,*is

greatly distressed by his predica¬
ment. But whenever he blows off,

Credit

the

Philip

cap¬

have failed

the people of. Alberta;.
government

other

lary.

Now, where are the labor organ!-*
going?, Let us survey.

zations

survival

his-rigrht-mindwouldneVer- ac¬ The:t Vikings,, and the buc6aheeiis
doc¬ cuse the President of the iUnited who later roamed the
Spanish

cheep impression

they

few years communist philosophy, will swal¬
largely through failure to adopt low communist doctrine and fol¬
social credit. Thus
this belated low communist programs under
and inopportune endeavor to as¬
cunning appeals to self-interest
sociate/the sarie/ and practical and class prejudices.
>
'
electorate of Alberta with? this al¬
There is ho doubt

most

Lewises

CANADIAN BONDS

John

Trends of the Labor Organizations

the"- past

with lying, fraud; and

ducted

he thinks of
personal insults, but
necesary lines in the enjoyable more and more away from the
drama in which he always struts road of good citizenship and the
the stage as the heroic champion Golden Rule. The last thing John
of the poor and downtrodden, be¬ wants is to have anyone do untq
ment.
By birth and breeding and fore whom cower their oppressors! him what he does unto them!
But let us be under no illusion*
by all, his instincts, he is a con¬
Despite the. fact that he does
servative, sane unionist.! But ever very well personally in this busi¬ The man who; could seize the
since John Lewis took him into ness, he is completely sincere in nation by the throat with a na<*
the C. I. O. and then deserted
him, playing the role in which he has tional strike in wartime in an
he has been a captive of the un¬ cast himself and for which he has essential industry is no one to
derground; John Lewis thought he written such beautiful speeches; appease with gentle words. As
could purge his C. I; O. of com¬ He reminds me of the famous lines previously suggested, the A. F/of
L. will become more militant unmunists, fellow travelers, and a of Cowper:
lunatic left fringe.
But the job
"He blamed and protested, but der his influence, or else!
that was too big for John has
The C. 1.0. is an organized mob
joined in the plan
been much too big for Phil.
"He shared in the plunder, but treated largely out of the workers
:,i\}>; »l f,v /.'-3j-r, •
v;t y\ < .c <"*,v,\
neglected by the A. F. of L. and ex¬
pitied the man"!
The Communist Fringe
ploited by both organized labor
John Lewis will never try to
and employers. But it is a ihob of
Probably only a small percent¬
change the economic or political such
age of C. I. O. members and offi¬
size that it must have politi¬
system because to him individual
cials are full-fledged communists.
cal objectives and methods.
It
freedom and free enterprise pro¬
But this small percentage is an
must either help run the Govern¬
vide
opportunities for strong, ment or
active and virulent minority whicn
be the Government. The
ruthless men to fight their way
spends its time capturing key po¬
Murrays and the great majority
up and to gain power and wealth
sitions when the normal American
of the rank and file think of
not available under any other sys¬
themselves as good Americans;
wage earner is enjoying the com¬
tem. He loves'power much more
forts of home, the saloon or the
exercising their sovereign right to
,

stocks

MARKETS maintained in
^

treachery, as approved tactics.

partisans, the Federation has
moved
steadily into a position
comparable with that of the Na¬

anti-Gompers policies, V presents
interesting spectacle of a man
trying, to ride one horse in two
theories of Social Credit. It is idle
directions, which he accomplishes
to attempt to. enter into any in¬
by sitting sideways and pulling
telligent analysis of the /imprac¬ back on the bridle whenever he
tical
details
of
the
proposed says "Giddyap!"
f;;■
scheme.Philip Murray is One of i^ie
Happily, it is announced, that tragic figures of the labor move¬
weird

bonds

and external campaigns are con¬

tional

Manning, the; credit of the Pro¬

advance the public interest as
against the special interests of

labor

ward course of interest

;

dandy candidate for

jtablisHI

that

scale
bond

was

growing
of

the

event

liquidation j the
readily, es-

could

itself; at

considerable

often with ability that
might be better directed.
But; the world today is at the
game —

cross

road.

After the greatest war

the

run

they

Government

much

by electing, browbeating,
and cajoling public officials. But
the underground which calls the
tune knows that the only way for
a

can

minority to run

effectively

government

take

over

the

Government.

The trouble is that when labor

organizations jjot' so large^ they •
political. Their very
power would be weakened
by
political opponents unless they
were able to defeat them.
Over
twenty years ago, I used to argue
with' Sam Gompers against
his
theory that labor should not be a
political organization. -My point:
was that his theory of rewarding
friends ..and
punishing
enemies
and constantly raising the wages y
of favored 'i groups . byr, economic ••
force would ;oniy work's© long as
labor, could; remain a, privilegecl class,rsuch as- craft labor profiting
at the expense of other labor.; But
when all labor is organized, its ;
interest becomes identical with
the common: interest.- Tlwri, wage .■
had to become

increases

are

of; no' ,advantage

to iroii t out • £ inequities,1
Wage and price increases for all
accomplish practically nothing ex¬
cept to improve the game for

except

speculators.
exterminate the dic¬
the civilized nations are
The Unions in Politics
sition of titular head of the So¬
With regard to future
prospects either going to end the rule of do¬
This means that a labor organi- •
cial Credit party..
there is little likelihood of
mestic dictators and foreign dic¬
any
b During the past week the mar¬
zation,. taking! inall 1 grades \ of ;
early departure from the present tators and keep
metf';free • for at workers and ^ organizing millions,
ket remained almost at a stand¬
state of quiet
inactivity. Experi¬ least another century, or else the
still. Direct Dominions and Na¬
must choose to be-either a politi¬
enced observers of the Alberta
spirit that we fought against will cal
tionals strengthened
organization run by statesmen,
slightly but situation are not unduly per¬
conquer us despite its material de¬
Albertas were inclined to ease.
playing its ^part bin 1 democratic
turbed and forsee no
important feat, and domestic dictators and government but not .trying to, run
There was some
activity in in- market repercussions.
'
C
foreign dictators will ride ;the the government; or it must become
Solon

Low

has

premium

po¬

curity.

over

the unrecorded
.

;

se¬

in history to

tators,

115

CANADIAN

I
—

STOCKS

are

rent

0Ve offer, subject;,

covered

Review.

our

Included

"•

(Callable at100

Copy on

Request

;

•.

„

CHARLES KING & CO.
Stock

Exchange

,
'

Broadway, N. Y.

Whitehall 4-8980

Royal Bank Bldg.
Toronto, Canada

V?.

York

'Price 101 & Interest*/

New York

WHitehalL 3-1874
or

rank

andy.filecubf/•:

labor still live in the

..think|ng ot 1
the early labor rpov^m^ht',, s.tU* live in the delusion (tbat MMabbr
can
gain by higher land4 higher
wages, still boo the' sdentific
.

that

statement

Canada

Wood, Gundy & Co.
Incorporated

Teletype NY 1-142

14 Wall

Direct private wire to Toronto

Direct Private Wires

64 Wall Street,

1950)

Principal and interest payable in New

iUttOtlE

over

80%

Mfmbera Toronto

& COMPANY

3^2% Bonds, Due June 1/^1978

The

ernment.

TAYLOR, DEALE

Province of Alberta

are

earnings, dividends, yield and
price ranges.
•. •

seek¬

$200,000
Cur¬

revolutionary organization

ing to capture - and; yule; the_ j gov¬

SA" 'Ay

Street, New York 5 A/
to

Toronto & Montreal

costs
-

are

labor

true, and it means that

CANADIAN®

wage

the

;; /.."securities.;:;;
Government

•

Municipal

Corporate

conditions

The

of all
it 19

horizontal
improve

not

of the workers.

rank and file of labor still
the delusion that labor./

suffer frpm
can

Provincial

increases

But

costs.

gain 40by 'more pay .for less

work,

rWhl® must

mean

less pro-

'yductip^/l^s'.jWealth, and less ac-*

•.

[Volume 163

THE COMMERCIAL ■& FINANCIAL CHRONICLE

Number 4474

pay for everyone.
But the
underground in the C. LO., the
everywhere,

tual

Original Cost Techniques Threaten Utility Equities

harebrained radicals

impossible demands and car¬
ry on futile strikes that cost the
(workers more than any other class.
The underground does this be¬
cause they jknow that free enter¬

prise and a
capitalist. system
depend upon voluntary coopera¬
tion and harmony between em¬
ployers and employees. They know
that the way to break down the
system is to foment discontent, to
incite conflict, and make willing
cooperation impossible. The surest
,\vay to make trouble is to induce
one man to demand from another

ity industry carry this right, nor
should it require a company to

(Continued from page 1497)
will find tnat his dividends will

land, the consumer, whose earn¬
ings are adjusted to the depreci¬
ated dollar, can purchase the same
amount of utility service with a

make

other

the

than

man

;■

smaller

portion

the

Take

case

his
two

Sponsors of the original cost
claim that there is ho

doctrine

need for

pure

and
of

The question today is whether
the brazenly vicious leadership of
labor that denounces every effort

those of the other company

bring industrial peace,; and fo¬
labor warfare, can
continue to deceive the millions

ments widening

who
price of
General
"Motors strike has cost the auto-*
American

wage

earners

dollars

lost

Wages. The union is seeking to
settle the strike - for an increase
of 19 Vz c. per hour. A statistician

figured out the other day that if
the strikers went back tomorrow,

they would have to work for a
year and a half, five days a week
and eight hours a day, in order
simply to get back in the wage
lost.
A labor

leadership that insists

Upon
using vcostly, destructive
strikes as the principal means of

advancing

the

interests of

the

wage earners, a labor leadership
which not only fails to propose
the use of peaceful means, but
which fights any eHiort to estab¬

lish

law

for the

means

his dollars

are

cushioned with

fair and peaceful
just settlement of

;;

trying to gain
special* privileges and special im*

conditions

revert

authorities — an
ap¬
peasement policy—or fears thaiopposition might result in even

pre¬

vailing in the 20's and bring into
being a new company with secur¬
ities unsupported by property and
the unfortunate attending results

suffi¬

with which
No

which

would

public

ownership.. Although

equity to

value.. Furthermore,

that

original,'

cost

to'

which

have

eventual
re¬

received

sanction
give support to;
fears, there appears to be
little hope that the industry will
reverse its position in an attempt
to prevent a slow and unnoticed
defeat by actively combating the
forces which are undermining its
these

assure

international

lead

court

can

current

trends

cent

disregard the high
opposing the issuance
of securities which are "unsup¬
ported by property" or "not based
upon sound values." However, the
one

motive

...

detrimental restrictions

all familiar." ;

we are

with,

relations

cordial

regulatory

safety.

exchange

the premise
represents

C. F. Childs &

Company

sound value cannot be substanti¬

ated

and

gives

;

Announces Promotions

assurance

against over-capitalization. If the

After

economic table were reversed and
or

adherence

Commission's

the

issuance

"not

based

That

securities
'

what

which

promotions were;J an¬
/»<.,'
;
•'
Chicago office, 141 West
Jackson
Boulevard,
George
E.
Tuerk and Richard E. Kelliher,
Assistant Secretaries, to be Assist¬
ant Vice Presidents. Also, Samuel
Yates," of the Municipal Depart¬
ment, to be an - Assistant Vied

nounced:

and
Utility
sarcastically

Commissioners says
55 of its re¬

on page

port:

purchased at $4 a
charged to operations at $6
ton because prices increase?

munities for • a majority-of the
people—which is a logical absurd¬
ity—-but will seek to advance the
general welfare by equal oppor¬
tunities for all. This liberal lead¬

are

happened

ership Will have to fight the rev¬
olutionaries who want to surren¬

uation ^reduced

mand for utility

similar sit¬

cost of utilities below

•

Some

service.

commissions

have

at¬

tempted to infer that original cost
assures a sound capital structure
and
a
Continuity of earnings
which

would

stocks

suitable

make
for

:common

institutional

investors.- In

original cost
reversal in the

either because of a

Smifh & Freedman

general price level or a change in

technological developments, the
original cost theory now held as
the guardian of sound capitaliza¬
tion would encourage issuance of
securities which' are "not based

Form Investment Firm

Service

agara

Hudson Power Corporation

due, in part, to the fact that the

capitalization would be pred¬
icated on values in excess of orig¬
inal cost: and, therefore", that it
would be "greatly over-capital¬

new

tionary price level which has al¬
ready been reflected iri sharply,
higher costs of utility construc¬
tion, should cduse, alarm among
utility stockholders. Opposition to

cause

Smith

Ernest
man

1944, the New:York
5
j
Comrhission' re-; :on-sound values."
The trend toward original cdst^
fused to permit the merger Of the'
various - subsidiaries of the Ni¬ combined with fears of an infla¬
Public

tain,"A.U.S.

the^replacement

and

Max Freed

have formed Ernest Smith

po. with offices -at 61. Broadwa
jsiew York' City., to engage in ?
Securities

business.

Mr.

Smit

formerly with Birnbaum

was

Co. and in the past way manage
of

unlisted

the

Faroll Bros.

fof*

department

Mr. Freedman was;

pense

freedom ? for the
theoretical security of a labor tyr¬

than actual value. If

construct the plants Whic£t will be
requirM to meet .the growing de¬

cents per

der

individual

It will have to make i
dictatorship can ad¬
vance class
interests when the
class is in fact the mass of the

anny.

clear that no

-"Should coal

ton be

Should
under

gas
a

this

growing

danger

can

come

Co|.

partner in J. L. Schiffman &

purchased fo^ resale

long-term contract at 15

m.c.f. be chafged to ex¬
at 25 cents per m.ci. be¬
price leyels increase?
Or
should gasoline purchased at 15
cents a gallon and held in storage
tanks for future use be charged to

■xUl.:

475,000 Shares?

operations at 10 cents a gallon be¬
cause prices fall to that level? If
the answer to these questions is

Maxson Food

Such dictators only subtheir unjust autocratic 'rio,? then by the same reasoning
judgment for the just and auto¬ depreciation should not be based
matic regulation of wages and on fair value, for it is a cost of
pricesby^ competition, m a-free pbieratiph jhst as purely, as are laboy *oif; supplies and it (should be
economy.
"
If organized labor follows the determined on, the basis of the
people.
jStitute

,r*

"'V/1

-'W"*

Systems, Itic♦
3

°'"f

■;>"£ V"'

1 *\

$.50 Convertible Preferred Stock
'

$1 Par Value

communism, it is actualities of cost rather than on
goihg''to»lead-workers and the hypothetical estimates of fair

pied pipers of
•

...

hell of a new value"
;tyrahhyf1;If It follows the wobbly : Since it is difficult to visualize
self-serVirig leadership of the old cpMitions under ^ich- One could
;• jgd'ard',1 J it'f Will load the workers agree with the implication that
coumry5 intb J 'the

>•

•

-A'

Organized labor going?

^'tbat it may go in the
right]direCtion lies today not with

•the

answers

should be
■concur

these

Price $10 per

questions

'*•

"no,", it is impossible to

in the conclusion that de¬

its

conservative

i but with

radical leaders

the young men, with the

the basis of the actualities

cost

rather

than

Prospectus upon application

hypothetical

leadership that is yet to be estimates of fair value." If there
developed out of the rank and is either a profit or a loss on in¬
file—the leadership that will have ventories, it should redound to the
benefit or detriment of the owner
to fight the entrenched labor poli¬
ticians just as it is necessary in whose money was either wisely or

liberal

the

political field, from time to

time, for a new and, progressive
leadership to overthrow the old
.

•

guard.- My faith iri human nature
has been often seventy strained
But I still have

faithl

foolishly spent. No manufacturer
or retailer could expect to pass on
to his customers a. loss arising
from

decline in

raw

material

inventory costs. Neither does the
monopolistic character of the util¬

{.'it

ib.yhaI

preciation "should be determined
on

UU\

;

In the

values."

sound

corporate

following

permit

obviously

would

theory

the?; annual

meeting of C. F. Childs and Com-;
pany in Chicago this week, the

economic
original cost,

replacement
cost
valuq were below

cease

property

to the
Their
stockholders. of their property without due railroads.
capitalizations
The function of depreciation is to process of law in subtle and de¬ were amply conservative on the
recover
from the consumer an vious contravention of the Con¬ basis of original cost but the de¬
amount sufficient to replace that stitution of the United States, it cline in the economic value of President. ■
;
"1 ?
part of the company's plant which is still possible to sell common their properties unbalanced their
In the New York office, 1 Wall
is worn out in providing service. stocks' to an unsophisticated and capitalizations.
There
is little Street, Raymond H. Heiskell, As¬
It is as much a part of operating unsuspecting public; but,' when doubt that receiverships and near sistant Secretary, Municipal De¬
costs as wages and materials and, the effects of the current trend receiverships with "the unfortu¬
partment, to be an Assistant Vice
to perform its duty, should re¬ of
regulatory policies is more nate attending results" were in¬ President. V Newly named as As¬
creased ,f among the railroads by sistant Vice Presidents were J.
flect the actual cost of rebuilding fully " recognized,
public1 utility
A?
that part of the - plant which is companies will be unable to raise the false security obtained from
Latimer, late Lieutenant, U.S.N.R.;
consumed* in rendering service the equity capital necessary to relying on historical cost rather and Robert A.
Bachle, late Cap¬

■

What labor needs is a leadership

not based

detriment

the

disputesi-:..;js "hot only ythe rdther than a meaningless original
of democratic government, cost, If depreciation were predi¬
-but the worst enemy of the hard¬ cated on original cost during
working nien and women of the period when replacement costs
were 50%
to 10Q%
higher, the
United States,
•
company would not collect enough
Liberal Leadership Needed
revenues to provide for deprecia¬
What labor needs and what the tion and its plant would be grad¬
given to the/consumer
country needs is a liberal leader¬ ually
ship, not ah -antique, outmoded through insufficient rates.
In an attempt to justify depre¬
?leadership^such>as thai"bf:Greeh
*ahd>' Lewis,
ciation based on original cost, the
a?* leaderships
'stooges of the underground, sufch Committee on Depreciation of the
as
the leadership of the C. I. 0< National Association of Railroad

return

should

continuity sound value has no more relation
of income and.repayment of prin¬ to the original cost than the 1932
cipal^ ; but ? they; shun; bommOn price of gold has to that metal's

cient

enemy

will

dollar-for-dollar repayment
his investment. Stockholders,
a

which

:f; labor

that

maintain

were

values. We do not believe that we

provide a stocks which are on the bottom
return on the actual value of the of the capitalization pile and en¬
plant as illustrated by the con¬ tail ^business risks they can ill
struction costs of the second com¬ afford. Purchasers of common
pany. Insofar as the customer of stocks, however, are individuals
the first company obtains service who are willing to take these ad¬
below the rates charged by. the ditional risks but in return ex¬
second company, he is not paying pect and deserve that their divi¬
for the full cost of the service dend income will have a stable
rendered and the stockholder is purchasing power. With earnings
deprived of his legitimate income increasing under the impetus of a
measured in purchasing power.
growing industry and stockhold¬
Original cost as a rate base also ers unaware of the successful at¬
affects depreciation accounting to tacks being made to deprive them

already

increase what they have

which

rendered as they do not

mobile workers far■ ■ more than a

million

oppose regulatory policies.
This
complacency is due either to in-i
ertia stemming from a desire
toj

stitutions, with fixed dollar lia¬
bilities, are avid buyers of bonds

would
afford

earnings of $120,000.
Obviously,
rates of the first company, do not
reflect the full cost of the service

have to pay the costly
such
leadership.
The

hundred

high

sufficiently

to,

pur¬

Recurrence
ofo v e r-capitalized
companies and the issuance to in¬
nocent
investors
of. < securities

and,' as any securityKsalesman
knows, there is a Wide gulf be¬
tween purchasers of fixed income
securities and common stocks, In¬

$2,000,000. Under the original
cost theory, rates of one company
would be/ predicated on permis¬
sible earnings of $60,000, while

The Price of Strikes

equi¬

however, are not pure1 investors;

•*.'

•

ized; the securities issued would only from them or from those
not be based upon sound values." who operate the country's utilities.
In support of this contention, the
Stockholders, however, find it far
Commission said, "This is the sort easier to dispose of their invest¬
of thing that was quite common ments
rather-than
assert
their
in the 20's and many laws have rights, while utility managements
since been enacted to prevent the in the past have been reluctant to

investor is interested only in

obtaining

$1,000,000 and the other
recently at an inflated cost

utility earnings

income. ties to; fluctuate'with the
identical chasing, power of the dollar

cost

increase in the value of its

plant.

companies | with equal -capacity,
the same transmission and distri¬
bution lines and the same number
of customers but one built at a

can

quarters. On the other

the living

on to customers the profits
foresighted purchasing policy

pass

only half as much food, or
naif the amount of clothes or half

buy

possibly give.

1521

March 19,1946

F.Eberstadt

Co. Inc.

bwv.r/'yj

JU'i '

)

—

hi?*

!,;V

■X\

;"?r ' ;:'^:j/"^THE

1522

CHRONICLE:'-^|?ji||i^j||^y?^Thursday,

COMMERCIAL &• FINANCIAL
;J

'Sfp«

March 21, 1946

77-l

;ri^V| «'■
..

The Economics of Collective
that much

(Continued from page 1496) :
ar\d the life of the job-seeker eas¬
ier; and more pleasant, v

nnli_trn of

Our

/»,«

lending would

Our ; anti-trust

cur.

would put an

Idtlrc?

Bargaining y'M0:M
•b.

workers. Does the whole business

oc-.

mhlrn

cr\An

laws

R77'f'

drawal is made

agement. The Administration and
the Government bureaus came to

Such with¬

enforce demands.

rigorous and

portentous by means of mass pick¬

eting, intimidation, and coercion.

heavily peopled by persons
political or other reasons
came
to believe that by raising
nominal wage rates and shorten¬

Labor unions

who for

devices for cre¬

are

ating monopolies in the field of
labor.
Perhaps the people want
these

monopolies
perhaps not.

ing hours, the lot of labor could
be
improved.
Less
work
and
higher pay. became the slogan:
Unionism was fostered by Gov¬
this

ment

The

of the same.

was

ture

help imple¬
ideology."; When
slow, the medicine

dogmas, invented during the de¬
pression, were used to rationalize
Administration

the

further

The true inwardness of
this shift in thought has not yet
been adequately appraised by the
American people. • v •'7
policies.

Collapse At War's End?

During the war, the Adminis¬
tration and union leaders seemed
to vie with each other to see who

predictj the

could

largest

unem¬

ployment at war's end when Gov¬
ernment withdrew its demand for

materiel

war

and

"All power

ma¬

over-savings

and

economy

still

; Monopolists tend to behave as
monopolists. - Lord / Acton said,

new

was

services.; The

power

cloud

corrupts and; absolute

corrupts absolutely

The

but it is
difference be¬

circles,

some

see any

tween the •profit motive and the
wage motive—each is for personal
gain.
Each is laudable and ex¬
presses
a
traditional American
ambition to get ahead. ; But we
induce the profit motive to work
ih ( the public interest through
competition and the prevention of

monopoly. Of our 1,500 breweries,
example, each is operated for
profit... But each may invade the
other's fields; each tries to im¬
prove its product.
Good quality
for

reasonable

figures from Government officials
were 4, 6, 8, 10 and 20 million un¬

best

assurance

employed, depending upon the
day and mood.
One CIO union

ume

and

prices is

still the
vol¬

increased

maximum profits.!; The

free market, with equal access and

opportunity—these

the

are

predicted 30 million unemployed

open

at war's end.

protectors of the public interest.
These force the profit .motive to

" * •g * since V-J

JF(e< .all- know- that

•

Day in
inore

have had

every month we

"full

than

employment" as
usually defined, except for the in¬
fluence

the

strikes.

This

un¬

relieved pessimism, however, fos¬
tered a new drive for wage in¬
creases,
for
maintaining
takehome pay which was erroneously

calculated

requiring

30% inT
Vir¬
tually the entire group, of vocal
Government economsits (with a
number of individuals silent) pre¬
dicted collapse at war's end and
developed wage and price policies
designed to hold prices and to
push up wage rates with vigor
and

in basic wage rates.,;

crease

"Purchasing power,"

poWe£.

said, must be maintained,
though marking up wage rates
could maintain purchasing power.
If this were the case, we should
urge the Chinese Government to
double or triple wage rates.
We
was

should

not keep
ourselves.

;

these secrets to

If the underlying

theory of

our

labor policies is wrong, as there is
reason to believe, it is not likely
that

will

of industrial

solve

the

problems

disputes until

de¬

velop correct theories.
'r*>

Collective Bargaining

£ t-

;X?" ' •*/ .V>-'

It
say,

-\j*.

fashionable

nowadays to
"I believe in collective bar¬

gaining,"

though this

matter of faith

creed.

were

.Why do

people "believe in" collective bar¬
gaining in the case of the labor
contract but deny its relevance in

virtually

all

other

transactions?

ffpall the landlords, for example,
and tried to bargain over

(imted

rentals with tenants as a group,
(some people would go without a
; roof over
their heads.
If all the

farmers

and

products

the

united

buyers of their
into two single

Respective groups to bargain over
Rarm prices some people would go
I lungry and prices would be fixed
iccording to the power which
iach of these groups could muster.
/£ all the savers and investors

inited

into

nterest
:w

rates
.

lould take

combine to fix
at

which

place it

the

lending
be doubt,

may

:■ ;v >>

Government Interventions

noting; that
so-called

Does -government intervention
in labor disputes
help or hinder?

4n; the public interest.

Sir

Wil¬

liam

Beveridge in his full
ployment program states:
;

em¬

their "Fuehrer"

"If trade unions under full

em¬

ble price level will become
impos¬
sible; wage
determination
will

perforce become
state."1

function of the

■~

Again he says,

7,.;7";7

C:/':://

wages ought
by; reason
and "not simply by the bargaining

line

between

do not

ers

demands
as

particular ? groups! of

Socialism

...

ample, the

cross a

which

Price

one

should

ever

elevator

"The

strike:

strike/which is

a weapon of force,
renounced ."2 \ The

should

Civil Liberties" Union,
generally more interested in unr
American

ionism than in

liberty, in

letter

to several labor leaders states:
■

picketing supported
are those to keep
traffic open for pedestrians and
vehicles, to insure access to-places
picketed* to, prevent the use of
fraudulent signs, and to maintain
order.; The union has supported
mass picketing where these con¬
on

by the union

ditions

met;

are

But

claims

of the

rights to picket justify the
of force-to prevent access, to
plants on strike by those who' are

use

willing to

cross

picket lines."3

that it
now

was

never

collector's

and

Policy"

Any

Govern-

economic

buf¬

judicially-minded

of the

labor

contents

newspapers "

pamphlets, 'cannot help but

events and facts

of:

re-

are

distorted out

opinion

perspective,: and •

ful

any c

thinking becomes

immedi-

p#;.)6bje.cti#:;^negeci to'
minently 'attainable.

sup¬

wish expressed by some wish¬

be" tin- .*

;
Two illustrations xnay be. cited: :
(1) In a- labor organization pam- '
phlet; entitled "The Road to "Free- :
dom," it is, "stated"/'According; to

vulnerable

item.

and

these

suit; of -this outpouring.
Guesses
are
reported as facts; statistical
data are subjected to
malpractice;

published and is
,

mimeographed)

fallacious

literature has" taken

reports

some

a-nd

was

labor

wonder. what will be the. end

the 20% to 30% wage in¬
demanded.5- The document

port

eco¬

But the

the War Production
Board, four
workers ' can' hOw ;produce the
same amount of goods % that required the labor of five before the

damage had been-done;
;v J;
•
Again, the Department o£ Coin-*
merce, which is supposed to pro¬

!
;
.

vide

"The only limitations by public

authorities

creases
was

the

person familiar with the

ex¬

jpffice of War Mobili¬
-

advantage

foonery.

designed to show that
wages could be lifted under vari¬
ous assumptions
by 24% without
price effects. ^This document/is
said to have "leaked out" and is

picket line, stated after the

York

VI The

zation and Reconversion5 prepared
a
document entitled "Facts Re¬

lating to Wage
(OWMR -;502,

Labor Union Literature*

Government Intervention
Wl%t Do We Get?

:V. /.'*

bonds

nomic process?

full

Shortly after V-J Day, for

defense

petent •; to i intervene

now. •

Many other "intellectuals?; are
already re-examining their posi¬
tions/ Thus, a columnist, Eleanor
Roosevelt,
who, ,formerly • said
every worker should belong, io a
widely quoted by unions to
union, and

and

If labor lead¬

ment

Under

•:;R;

people

the

war

bought in the early part /
have already lost one- rR
third of their purchasing power.
Question: Is the Government com-,

voluntarily limit their

many

that

of the

tioning as a democracy can do so.
This is the* problem that is both¬
ering

note

which

into power.

within reason, question
to whether society func¬

determined

power

The

Socialists and
Europe be¬

came

increases-are

being approved ■>
by iithe / stabilization */. (?);' office,
>' ';
while the people's
savings/ and r,Rother fixed monetary claims are ;
having their value greatly reduced.R It* is somewhat shocking >1

Nazism* is;narrow,r

arises

ployment' press wage claims un¬
reasonably, maintenance of a sta¬

many

liberals

ardent totalitarianists when

came

There is argument on both sides;
The record
certainly is not good—-

New

is under

profit motive
in

difficult to

■

recovery

;

continue, men.7/i777/,^

Harnessing Selfishness in the
Public Interest

ernment and others to

'!■

///R/Ii

threaten to withdraw all the labor

signed to strengthen the hand of
labor and to tie the hand of man¬

*:i

make sense? " 7 .";

soon

or
interest fixing. We
collective
bargaining t in
every field except in the field of
labor. Why? v
.
What is the purpose of collec¬
tive ; bargaining?
A
purpose,
among others, is to destroy com¬
petition for jobs, to fix wages by
pressure, to unite all the workers
in a given plant, industry or occu¬
pation and then to withdraw or

deny

During this period the Govern¬
ment of the United States for the
first time in our history adopted
the purchasing power theory of
prosperity. It is this theory which,
at bottom, is the cause of most of
our trouble.
A broad sweep of
labor legislation was passed, de¬

oo"?

end to such price,

rental,

Purchasing Pcrwer Theory
Enthroned

The

oat-i

they supported Hitler; he was to
bring order out of chaos. In Italy
a former Socialist,
Mussolini, lead
the march to what he thought was
orde£JoUt of chaos. ' It is worth

business with authentic and
accurate data, prepared a, similar

^ar Production Board, and the
international secretary of ;the tin- V

document entitled "Domestic Eco¬

nomic/Developments" (Oct. 25,
1945• — mimeographed)- designed
to shew that wages "in the auto¬
mobile industry could be lifted by
25% without price effects. • This
document also

was

ion produced no substantiation of
this statement.- The"War Produc-

;
*

tlon Board states, by correspondehce^: that^^it: never iiiade, thjsr'as^
sertion.
But the implication' is

"inadvertent¬

union

*
.

:
Wages /

that; hours

ly-* released but td this day has

must

not

raised by a similar amount irt or¬

;* been
officially published.
Again'; the damage was done and

'shortened,-' and

der to maintain

the labor leaders

purchasing

power

quote it widely/ ahd/Zavoid/ depressions^;;(2);:Thef;
Both these! documents ; were - de¬ same labor
organization issued a *
signed to prove that wages could pamphlet on "Fiill Employment"
be raised by aboiit
one-fquarter which reports (p. 8): "The Pfesi- :
without price effects.®
dent stated that .we must improve •
,

function

public

interest.

market

becomes

the

Sometimes

All of these pronouncements by
erstwhile "liberals" are straws in
the wind.
They are evidence of

rigged and even closed
—but, by and large, we do a fair¬
ly good job of keeping the market
for goods free and open in the
unfree,

public interest,
How
motive

can

/ y: r
induce the

under

collective

•

wage

bargain¬

The

shop is
wage
de¬

collective

sponsored,
mands

closed

"take it

leave it"

basis

are

Mass

picketing and other devices

urged

and made legal.

to enforce collective demands are

that

realization
that powerful monopo¬

now

listic unions

have

been

built

up.

; The
subsequent
innumerable
price increases in steel, meats and

other
same

our

raised to buy ,'50% better'- living/*
It has not been possible to. verify

making

the

what

natural

forces

market would indicate,

But,

which
nearly < to

;; process

conform

the

;

if it is granted that
insight is valid, it raises
an important problem for a de¬
mocracy. While labor never votes
as a unit, the
/tendency* to do so
this

even

new

that the President

the

minds

of - many people
question whether
Government; today is impar¬
tial/honest ahd scientific even/in
its- statistical .work, and the fur¬
this

raises

question^ whether the Gov¬

ernment

carr'

serve

useful role

ever

made this

entirely different character by the
Office^ of

War- Mobilization

even

welcomed.

named. In Great Britain and Swe¬
den

the

and

control

heavy

reliance

the

'•

ployed^ to absorb the net increase
the .labor supply and to allow
fof
some
estimated
efficiency,!
?ains during the war, we would
je^lh lhe happy positioii of having; '
o raise our total
output by 50% •
over the* prewar to attain full em- '
)loymenL Yet the - union used
: n^

pussillanimity

and

the

hour merely a first instalment,'
It would be interesting to know

poltroonery with which

the

and

preventing labor disputes, or
settling them after they break out.
In case after case, labor unions has increased.
Certainly in most Actually the Government itself is
have demonstrated themselves to1
elections labor holds the balance. fundamentally responsible for the
be more powerful than the Gov¬ of
power and politicians act on impossible wage' demands made
ernment itself.
Can labor leaders this
assumption. If the state must by the union leaders since V-J his statement to scare its readers
and their followers be expected
discipline labor-as is implied by Day. We ar£ told in no uncertain into thinking that unless basic
to develop any restraint in their all three
spokesmen referred to terms that" as soon as this current wage rates were raised 50%. we
demands?
Do monopolists nor¬
above, just how does the state, round of Wage increases is com¬ would head for depression.
This
mally
develop
self-restraint? short of totalitarianism, discipline plete a new round will start. Wal¬ also explains why the current
Function in the public interest? labor when labor
holds a major¬ ter Reuther of the auto workers round of 15 % to 20 % wage in¬
Assume
a
social
responsibility? ity of the votes, or at least a bal¬ union labeled the current demand creases is regarded as only the
Perhaps one or two could ,be ance of power. The
Ideas are im(March, 1946) of 19.5 cents per first installment.
countenanced and

Reconversion which stated: that in
order to .absorb the prewar wnem-

the

ther

statement and, in any case, it re- *
fers to an! announcement;of Vant/:

would

better
means

that the basic wage rates must be '

society must do something fp pro¬ these documents, under wage in¬
tect the public's * right not to be creases which fell substantially
against and to be put in short of 25%, is full proof of the
jeopardy,, to keep open the job fallability of the Government
opportunities and t to restore * a diagnosis.- ,' - - ^..
wage *

people may live 50%

than before the war; This

allowed by the
Government which prepared

standard of living so that all

our

industries,

struck

ing to operate in the public inter¬
est?
Individual
bargaining * is
condemned.

change of heart,

xxrtant.

•

;

Government has handled la¬
These two illustrations could be
competitive export market helps bor disputes since V-J
Day is a; how many of the Government em¬ multiplied hundreds 6f times. One ;
to moderate wage demands; we
good indication that we must ployees who worked out these doc¬ shudders to think of the effect on :
do not have" any such" natural dis¬ reach
a supreme crisis
stage be¬ uments are members of labor un¬ the minds arid emotions of mil^
ciplinary pressure,
~
-fore the public interest is
given ions and how many of those who lions of our people as this- litera-:
priority.' A number of the Euro-1 advised the General Motors and ture' is poured out every week,
Labor Union Politics
pean dictatorships grew out of the
other fact-finding boards are un¬ every day and every/ hour.
It is:;
A labor union, furthermore, is a
inability of the democratic state ionists;^.-Is this Government for required reading in many of bur ;,
political organizaiton-in-terms of to handle
/the labor question/It is all the people?
Can the Govern¬ schoolsl' ; v
""/■/,!;;; "'Ai • •
its own internal operations./ The
a favorite indoor
sport to accuse ment be impartial? / Is this in the
Again it may be repeated, un¬
intra-union rivalry to hold office
the
German
American tradition? There are no
industrialists
the

union

strong;

labor leader who preached mod¬
eration in demands may be quick¬
a

ly accused of having sold out to
the "bosses."
A failure to keep
the pot boiling and to

agement

keep man¬
the spot, may be used

by would-be office holders to dis¬

the

place
the

present
election.

leadership

Hitler? Were they
inherently bad

til this crude purchasing, power,
answers to/these questions.
Today the great Government ot theory of sustained prosperity is
the United States'stands in Wash*: dethroned;; both / in / Washington^

men,

ington

bringing Hitler into power.4

But
why did the industrialists support

older unions'have developed con¬

But

intra-union politics is now broad¬
ened

tics

where
..

are

to include inter-union

two

more
,

poli¬

unions
--

wage

than the disease?

1 "Can

A.,

2 New

1945.

de¬

and

the

minds

and speakers in

ment,;

cannot

ofI

expect

industrial

relations

1945.

>Kjfcgr.i-y.

York

"Herald

York

"Times," Jan. 21. 1946.

fribune," Sept. 27,

Actually there is

evidence

that

See especially: Writings
Leopold Schwartzscnucu

striving to organize the came 1 analyses of

problems. If this particular brand

•

the

and

5 The
6 The

Road

to^Frhedom—CIO.

misdiagnosis

postwar

10.
condi¬

tions
our

was
irresponsible. For a view that
problem woul^Jbe excessive and Infla¬

tionary purchasirte power see: "Maintain¬
ing Purchasing Porter in the Transition,"
Chamber of Commerce of the U. S. A.,

published before V-J Day, July,

1945.

our

of labor
we

to re¬

solve/

kind of economic buffoonery,
keeping with? the dignity of
a
great government of a great
country.
At the top, both types

the Writers

the union move-

pew

industrialists as a group supported Hitler'
prior to January, 1933, in any larger pro¬
portion than other groups irr tv.* 'termon

j f conomy.

one

and

not in
Government Guarantee Full Em¬

■

3 New

through

price ' increases
through another, department — a

ployment?", Chamber of Commerce of the
S.

simultaneously promoting
increases

partment

We have the testimony of people
from all walks of life as to
why

siderable internal discipline.

they driven ; into
solution and then got a

were

cure even worse

Many of the

finding

easy

;

literature is correct then

need

strikes/more mass

picketing and more industrial tur¬
moil to help

implement this ide-

ology,'

,,/'//•

•It should be said that a number :>/

of unions are much more scrupu-

Volume

THE COMMERCIAL &

Number 4474

163-

,,»-

workers
unmitigated evil. * Collective .bar-- rose/17% while the prices of fin-'
ished goods dropped nearly 20%.;
gaining, may perform a useful rolet
in impro ving the channels of .com¬ Real,/wages rose faster than, in
municationbetween
employees any decade since the seventies.

•

ings

of non-agricultural

tires

management.

demand,
because private payrolls in 1939
were
nearly
$8,000,000,000 : less
would''; take- advantageof-vthe
than, in, 1929.9
/;/////,
"■
:'
/workers." Some machinery, is re?
Squired : for,c preventing ;,and-r set'/ ^ During /the catching up period
the demand for .goods is intense
tiing grievances.. It is when col¬

work;for four hours

•

1936

the

average wage for
of this plant was 88
hour, a gain of 120%.
Had
this •/•' been the
only ^ gain
which
took
place,
the laborer

cents

greats so/.that the present wage
lifting will probably not kill off

system,
more powerful- than management
i and even than the Government it¬
self, that it becomes a danger to
the democratic state and the peo-

half of

all employees

''savings" are

stored up

and. the

'batgaining:-creates an in¬

dependent .private power

19378

■

•

would still have had to work

prosperity .and

Average / Hourly
Cost -of

Lifetime

Dollars)

/TttfcaT'J/

Total /

Income

1933-—---J-—'

$42,439 '

•

;

"•'

Total. Income

'69.60%

-48,128-

;

;;

his

69.78

>"v'

68.15

"51,816

Source:

Department

Of. the

of -Commerce,

own

40c
$35

means

for / 20

^remaining

our

one

of their income

dollars per

many

cents

of that would

This

what

Mr; Hormel

have

thing

one

is,

who

out

much.

gets

/:f /-/
never

how

■

"Now,

/';•"//:////'*;¥.,;$//

"This company has

88c

always

20,000

2,200

Workingmen / decided
couldn't
wait
for labor
scarce, so

they
to

they got their heads to¬

gether and, by refusing to work
themselves,
and by preventing
other people from working, they
created an artificial shortage of
labor as a means of raising wages

of transportation

that's the way business
has been run and, what

"For

while Boss doesn't

to .mind. ;

times later

on.

all, he thinks,
Butch is doing his work every day
and Boss only put up the money,
and maybe there will be better'
"Everything might still be all
right if the price of. hog meat
didn't keep going down.
Pretty
soon

Boss finds that Butch is still

making his $4 and Boss is actu¬
losing

ally

money.

can't

He can't afford to
take losses forever. He gets pan¬
icky.

quit.

There is only one thing to

do—cut wages.

"It

never

•"../ /

occurred to

derstood they were
Boss

•

'•./;•

Butch to

around and tell Boss he un¬

come

There must be sepme

getting wages up, and this com

has

much invested in the business that

It really wasn't a sound idea.

better way of

seem

After

of 25 cents^ per kilowatt

hour/, now sells for a figure aboui;
80 to 90% less and the quality of

with
collective
bargaining and
everything, it seems it ought to be
fair enough.
But let's see what
happens.
^ /■7:///-C/ /•"•/// ■■■>"-■■ /J".;/:')
"Butch and Boss go along all
right for a while. * Butch .gets his
$4 for killing the hog and Boss
gets his $1 for his end of the
deal. Everything is fine until the
price of hog meat happens to godown. '/ One day Boss wakes. up
that Butch is still getting $4 as
they originally planned but he,
himself, is only getting 50c in¬
stead of $1.
;';/;y'. ■/"/'// -/'; ;/";/:y-. '•'-'

dipper in the pail// That's where
the idea of- unions ; came from

2,000

•

says:
'O.K., Butch, let's
I'll pay you $4 a hog.'
>

start.

mel, President, Geo. A. Hormel &
Company, at the time of the in¬
auguration of the Joint Earnings

figured

better way
idea than to
quote from a statesman-like pro¬
nouncement of Mr. Jay C. Hor-

"The

'Nq, that wouldn't

wages.'

Boss says:

said:

fair

'All right, what do/
you think your time is worth?'
'Well,' says Butch, T ought to
get $4 for killing a hog.'
»
> :
The boss figures it out.
$1 a
hog for his share won't be so bad,;

hour, the emphasis

Perhaps there is
expressing this

be $2.50.

Butch says:

is wrong.

Plan.

little figuring.

Electricity selling in 1900

given.

Washington, D. C.
31.85% In-1940, incorporated businesses received 6.2%, unincorporated businesses in¬
cluding fanners received 16/4%, interest payments absorbed 6.5% &nd less than 3%
went tonet tents and royalties. / The; birik 4f the sayings .for ^ew^pla^t; ^quipmeivt,

Wages--,—

Tire

Mileage of Tire

50/50.'
pencil and
A hog costs:
The hog meat would sell for
That would leave $5.
Half

"Butch gets out his
does

$20.

Many other illustrations could be

//. -//«,

/•v,s 58.10.

•

fundamental

$15.

A careful. study t>f this actual
experience will show the relative
xmimportance Of money wage in¬
creases in making it possible for
the American workman to enjoy

'•'""/"-66.95V

•47.829"

76.035'

1940^LL._-X-~±XXXX$

;£* Percentage
r

17*4,948 /

64.418 ;
70 674

X //

1939—-ui

$29,578

71.436

•:'■:■

Employee Income as

Compensation
of Employees

National

Small

Mileage Yield -for Hour's Work

(Millions

split the profits.'
says- 'O.K.
I'll do that.

"Boss

'11 split with you

WORKERS

RECEIVED

and

felt its man¬
agement would never be quite
right until we hit upon some sort
of formula for determining who
gets what. The way we have de¬
cided such questions in the past
certainly is not satisfactory. /
"Heretofore, when management
was
in extra demand, manage¬
ment got its dipper in the pail.
benefit of consumers.
The data is When capital was scarce, it got its
summarized as follows:
dipper in the pail. And then when
1908
1936
labor was scarce,
labor got its

more collective bargaining, sub¬
and
than stantially ..higher : hourly wage
rates, and more labor legislation,
ever,- the
upward- pressure on
as indicated by the accompanying
wages will probably jbe far .great¬
tabulation;
*
/ w •' •
'
er than ever before,/The upwayd
'^STABILITY- OP PROPORTIONATE SHARE OP. NATIONAL INCOME

•

do not need

buy the hog — I'll
We'll sell the meat

gether— you
slaughter it.

entire sys¬

ployees is a union member
that unions 'Ore stronger,

;

hiring people by the hour
or even by the
piece.
Certainly
when a man is put on the payroll
what the employer is buying is
not time.
He is buying the ser¬
vices of the worker which, con¬
verted
into a
saleable product,
gives the employer wage-paying
capacity. So long as people think

em¬
hour to secure 50 miles (23 miles
ployment to any substantial ex¬
tent;
after / that, however, ^em¬ plus 120%) of use from a tire, or
;
one - hour's
work
would
have
ployers will again be blamed for
Pie.
l
'hot. finding jobs for the unem¬ yielded -enough income to pay for
ployed" by the same people who the: wear and tear on the four
iWage Iiiewsases. WithquliUhiens i
tires Oyer
a
12.5- mile, stretch;
are; now/ artificially : promoting
'^rom l840 to 1930, a/period
the rise in the cost of labor. Con¬ stillIKe worker could not have af¬
when we had little unionism, the
sidering the long rise in both forded to run a car, even if some¬
hourly earnings of non-agricui- nominal and real wages, why do one gave him one.
V tural workers rose seven-fold and
we suddenly need unions and the ■:* / However, two other things hap¬
*the;4hdex **
Government to assume the role of pened./, In 1936, instead of a tire
rose
20 %-.8
This, rapid rise in
costing $35, it cost $8. Instead of
wage boosters? ,:///
~
>
Swages indicates . that the., adjust¬
running only 2,000 miles, it would
ment oL the wage-price structure
run Hon the- average about 20,000,
Uan Collective Bargaining Jm
to the growing productivity of in¬
as
shown in the accompanying
/l/v//.-prove. Labor's. Income?/^,
dustry. was accomplished mainly
tabulation. /.Calculation; indicates
The notion that, labor unions
/tiylady atices In yrages rather than
that in 1936 an hour's work would
can increase the share of the na¬
decreases in prices. * The compe¬
tional income which accrues to pay for not 23 miles of use, but
tition v of ; employers
for, lab^r
for 2,200, a 95 fold improvement.
labor is difficult to support.
seems
to have affected wages
Thus under/ the stress of compe¬
0Perhaps Wen "fflore striking i£
more' than competition of employ¬
tition the price was greatly re¬
the almost stationary percentage
ers to sell goods
affected prices.
of our national income which la¬ duced, and the life of the tire was
;AsSlichter states;^ow that oiie
increased by 900%, much to the
bor, gets each year, in spite of
out of three non-agricultural emtemporary

tem of

Obviously workers did not
operate. cars! ■;; */'•' ///.;/

•

lective

1936 eight dollar tire

re-examination of

and

day.

of .23 miles

er we

merely pay for the wear and tear
on
the tires, the worker had to

for the

ently: too rapid

distance

Question must be raised wheth¬

only 23 miles of use of one tire.
:
Thus to run the car with four

The advance in wages was appar¬

Unquestionably.
Nyi^out^ unions ^ or...the > threat* of.
unions, f management /•. at ? .times
and

The

ems.

a cost of

% cents per mile or 7 cents for may cost $14 to $16 this year.
/
'.
the 7 wear and . tear on the four,
The Hourly Wage System
tires alone.
Calculation indicates
Questioned
that an hour's labor would pay for

ticularly strong since 1933.
Be¬
tween 1929 and 1939 hourly earn¬

;Willfu!ly<diStiort;•
t
i It should not be implied* that
.collective bargaining need be an

•

par-J its. lifetime, resulting in
1

has been

pressure-on wages

and never

•k>us in their literature

1523

FINANCIAL CHRONICLE

has ireally

losing money.
worrying.

been

been/sleeping well
pany has set out to find that way
nights. ' It keeps going through his
is greatly improved in ; ."First, let's see why the wage
head: 'That fellow Butch is draw¬
terms, /Of,, service - and reliability system /' doesn't work / right even
about one cent up ; or down in
ing full pay all this time—I'm
Thus it may be seen that "in 1938
Higher quality at lower prices where we have collective bargain¬
several years.12 This independent
losing my shirt.'/ Boss begins to
ings -../i. v,../ .1.
under .the, impact of; competition
or 1939 the share of the national
discovery by Mr. Nunn merely must always be far more impor¬
"To make it easy to think about, wonder whether Butch really
income going to salary, and wage
cares much about him.
The more
bears out the above figures on na¬
tant in the standard x>f living o;: let's get down to just two people
labor was almost the same as in
he' thinks about it, the more he
tional income and again suggests
one employer and one packing
the
American, people than the
1933; in 1939 there was'"more to
that collective wage determination
to
wonder whether he
number of counters (dollars). they house worker—and we'll see how begins
share": than in 1933, but the pro¬
One
operates within definite confines get.
the present system works out. For cares much about Butch.
portionate share going to labor
fine morning Boss can't stand the
and
suggests ~ that;' perhaps the
Higher productivity, larger out¬ the sake of the story,, we'll call
remained the same. Beginning in
only way of to<preasing'Tearil:. wages put with higher real wages for al
the one
'Boss'
and .the
other pressure any more, so he walks in
•1933 a vigorous effort was made
and says: 'Listen, Butch, from now
is /through greater national pro¬ workers should be the
'
objectives 'Butch.'
by- labor• organizations,: the Na-.
duction./
;;':v of -a dynamic society. Until we
"Butch comes along to Boss and on killing hogs is $3, not $4—take
tional Government and many indi¬
"
,
■
ibimiiarly in the case -of * the cease to try to Z formulate 'wage says:. 'Boss, I'm not doing anything it or leave it.' •; "
viduals to lift wage income; wajge
;, "About that time the price; of
railroads, the percentage of gross
tates were greatly' increased aiid
policy exclusively in terms o" right now. I'm a good butcher by
"overtime payments were required. receipts v gning - to wages ; has re¬ money wages and recognize that trade but I haven't any money.;' 1 hog meat starts to go up. It goes
back to $20.
mained. quite constant inspite of real
It just barely comes
In spite of/this prodigious effort,;
wages ^and real income Con¬ understand you own a scalding
repeated wage increases as indir stitute our standard of living, we tub and a kettle and everything into Boss's mind-^that is where
/ the share going to labor -has - re¬
eated by the accompanying sched¬ will not solve the industrial rela¬ we need to slaughter a hog. I was they started—$20 for hog meat—•
mained * almost stationary.
Thus
uled '
/'
• •
(Continued on page 1524)
;
tions f and
wondering if we couldn't go. in to¬
it should be clear that artificial
unemployment
etc.i Came

frora these groups.

the energy

hasn't

;

prob-

raise wages do not as¬
Railroad Wages as a Percentage
sure labor a bigger slice of the
of Gross Receipts
national income nor do they guar¬ 1923
44.3%
42.6
antee jobs or full employment. It
43.2
would appear that capital and la¬
44.8
bor go up and down together. For
forces to

labor leaders

these reasons, some

■

and

are
.

prosperous

recognizing

of labor rests on

that the welfare

7bis

announcement

is neither an
The

46.5

offering is made only by

44.1

43.2

1940

industry,10

adopting his guaranteed 52Again we are driven to the con*
I pay checks per year for his em¬ elusion that only^ as we^enlarge
ployees, these checks based upon bur national pie can -tiie various
In

receipts of proNunn, President of

20% of the gross

eduction, Henry
"

Nunn-Bush Shoe Company, said
that in his business there seems to
be

unknown economic law
dictated that labor should

$ get just about 20

cents ©ut of each
dollar regardless of business

sales

conditions.11/': Over

decade or

in prosperity or depression,
had been receiving 19.46%

more,

labor

of the sales

this

from
7 See

for

Letter,"

dollar, the deviation
average

being

example. "National City

Bank

March, 1946, p. 27.
Sbchter. "Wage-Price

Chronicle,"
10

Feb,

Clinton

berg,

1946,

S. Golden

"Dynamics of

Industrial Democracy,"

The

& Brothers, 1942.
•
,.
Annual Wage
and Income-Security
Emerson
P. Schmidt, Journal -of
Business
of the UotMftW
-Chicago,
11

Aprilj, 1941..^

r;'f.

relative

hourly

unimportance

/ e

of
($5 Par Value)

rates in the

money wage

•/•

ber tire industry.19

| /'The

average

/
one

the largest tire producers was re¬
an

the

obtained in any State from only sLbli •
may legally oiler, these. etoaritieS .
under the. securities lams of such State.",

Prospeotus viay be

-upset

this

stability.

invention

should

the

labor

direct

making

shoes,

cline to

10%

13 "The

the

2C%

less.

Interest

'ut

shoe-

displace 50
required

now

figure

would

Federation

1325.

Reynolds & Co.

in
de¬

Labor

Competi¬

tion," in "American iFederationist," Ameri¬
Labor,

December,

1938,

]^rib/iOj,
•

:.
»■

-f,X

dealers -■ J' v,

participating in-this issue as

of 2,000 miles in"

average

70%

Obviously, major technological changes

would

can

Copies

hour in 1908.

In 1908 this tire costing $35 would
run

XO t

fcq

V £*
r.

employee of

40 cents

'- //.'// ?.j

March 21, 1946

ostt;

'L'jA

the rub¬

'ix
;■
illlH? V

iii'fi.v til'-A

ityy

onstrated by taking a look at-what
has actually happened in

•

'-■R?

standard of living is further dem¬

Haroer

plans

Common Stock

'■yytyyy Quality yy}. yyx

making

and H. J. Rutten-

Universal Winding Company

?■; I xt- "■'

Lower Prices and Improved

only ceiving

Policy and
Employment." "Commercial and Financial
8S.

109,400 Shares

larger piece.

gro.ups secure a

some

which

of offers to buy, any of these securities
the Prospectus.
1
,

offer to sell, nor a solicitation

•. ••

THE COMMERCIAL & FINANCIAL CHRONICLE

1524

Thursday, March 21, 1946
ment

The Economics of Collective
•'•V, (Continued from page 1523)

that the only answer is which each person recognizes the
production.
ftv -ft'®®®' rights and interests of others, and
Henry Nunn said shortly after compulsion and coercion are at a
he
It should be possible
adopted this plan that the minimum.
scheme was not simply a device to evolve workable criteria for
for-regularizing paychecks; it had determining the rights of workers,
also
"converted
employees into of employers and of the public.
partners in the enterprise."
It Let us look at three such crite¬

to split be¬
Butch used to get $4.

thinks

Boss
in

•

might call Butch

put him back on the $4
basis.
Still, Boss doesn't know.
There was a long time when he
operated at a loss.
Of course,

Butch has his pay cut

$1 but that
Boss's share had

only 25%.

was

What if Boss is

been cut in half.

what

understand

the presi¬

Canadian shoe company,

who had adopted the Nunn-Bush
52-week paycheck system illumi¬

ably won't last long. Maybe Butch
isn't being done so badly by, at nated Mr. Nunn's. statement.
The Canadian president and a
that. Anyhow, who knows?
This
$20 meat may not go on forever, worker were discussing the an¬
Boss decides he will go along just nual wage plan, and the worker
as is.
ftft.fty ft'ft^:® said that Mr. So-and-so, who was
"Butch is getting only $3 per the business agent of the union,

;

ft.
hog now. Boss is getting $2. Butch
ftftft feels that one of those two dollars
is really his.1
He starts feeling

had

"changed his habits."
president said, "What do
you mean?"
V
V:
ft
;
that everything Boss gets comes
"Well, he used to come in the
out of Butch's pocket.
ft®'- mornings, punch the time clock,
\ft
"At that point they have truly then he would go off and spend
X begun
to
misunderstand - each the day doing union business all

'ft;;.

over

"Boss really begins to feel he
ought to do something about that,
so when Christmas comes he gives

ft Butch

ting only $3, and Boss getting $2
for just putting up the money,
"On

three

four

hand, Boss is
afraid to do anything about it, be¬
cause he knows the price is bound
to go down any day.
\
K ft} .>
some

offers

are

again

on an agreeable basis for the mo¬
ment, they are no better off than
they were in the beginning. The
margin between hogs, and hog

meat continues to go up

and down.

can't be long until once more
Butch is getting too

Why doesn't he do it
•1

any
*'

The worker

and
what

meant

month

two

before

much, or Butch thinks Boss is
getting too much.
Personally, I

plan had converted his employees
into partners in the enterprise.
Obviously, if that worker draws

hvho gets what' has been wrong."
This kind of analysis gets down
to the root of our civil

by the

goes

war

collective

name

which

bargaining
with
its
concerted
ft ft withdrawal from production of la¬
bor power, its boycotts, its picket¬

his weekly paycheck

of, let

us say,

$50, but produces

no shoes, then
$50 comes out of the pay¬
checks of the other workers. The

the

plan

serves to discipline the en¬
enterprise and to coordinate

tire

the workers in terms of
company
objectives: to produce a large vol¬

ing, its lockouts and misunder¬ ume of quality merchandise at the
It goes to the heart
standings. It is not probable that la¬ right price.
bor-management conferences and of industrial relations.
government
will

•

ever

conciliation

schemes

bring order into

dustrial relations until

our

in¬

have

better educational foundation for

lish

enduring foundation for

industrial peace and for determin¬

office

there
.ft
;

force

gets

several

are

about

involve

<;•
;

want

relations, of

than

course,

economics.

raw

the free

Finally the workers

conclusion that the 20%

they have
14 Allen

Plenty."

never

to the

is right;

Road

Boston,

not

Unquestionably
to

free

society

rights

are

the

facts

the

American

people can be expected to resolve
this conflict after a time,
provid¬
ing action is taken before even

agers.

should

by others.

Mass.,

production which merits careful study
by both labor leaders and business man-

discussion

Given

1937, $2.50. Proposes a new technique for
determining the distribution of the shares

No worker would
enter

these

]

unprecedented

railroad

indus¬

having
entered
he
the view that hi£
right to strike was not an absolute
right, but was conditioned by the
rights of others. But such criteria
never

become

the

banking
the

;

been

realized,

was

proven,

since

events

invest-

New

The

Role

ons.-

Ideas

make

ment-labor relations.

destroy

civilization.

require that all labor de¬
mands, not subject to satisfactory
negotiation, be submitted > to a

for Hitler's ideas.

three

lacious

arbitration board,

man

un¬

Meanwhile the road is slated
to open bids next week on
an-ft®

can

Hitler had

other issue of $25,000,000 of new
first mortgage bonds, series
G,
due Jan. 1, 1961.
Bidders will
i

what

andft the two parties or, the
two selectees mutually agree upon
the third party to the board? This
appears to be the only way in

has

had better than average results in
wage

losses

its officers thoroughly oriented in
our American traditions of
equal¬

ity and fairness have not chafed
under this self-imposed rulers By
making decisions 'retroactive to
the time of the dispute, all strikes
and

other

coercive

tactics would

be eliminated.
'Such arbitration boards volun¬

and

public members fre¬

out

part,

scientific

any

society, for their masquerading
fact finders.

bidding
cessful

driven into

drastic

tated. '■

The

steps

ideal J society

precipi¬

are

••

one

in1

suc¬

3.40% ftft

ft A second

group offered
of; 100.086 for the

into

price ft

some

The way was cleared at a recent
stockholders'

years.

vaster

than

for

for
the

Consolidated

com¬

debt

Edison

Co. of New York system.
The proposal of the directors
to authorize

mortgage

new

the properties was approved by ft

Daily we hear the nauseating
platitude that the world has be¬
come smaller; but in things more
important than bombing planes,
are

meeting
refinancing of

plete

structure

form of authori¬

and television its

Consol. Edison Refinancing

Education: Our Salvation

large portion of publicly

vo¬

the

fixed

;

radar

Thursday

group

dividend for the stock and paid
the company a price of 100.15. ft-

same
divi-'
higher, and higher standards of
'
livirig for all.
If wages .are too ftdend rate.
Funds from ft the offering to¬
low, why not encourage more peo¬
gether with company cash and
ple to become job-makers and
funds to be received from the
thereby bid up the price of la¬
bor?
This happened before the sale of additional common stock
to Niagara Hudson Power
Corp.,
1930's and could be made to hap¬
will be applied to retirement of ft
pen again.
the outstanding 251,584 shares of
;
Our social fabric is severely
5% preferred.
damaged and has become tenu¬

It may be argued that labor un¬
ions will never accept these cri¬
teria.
This may be true so long
as

price of 101.50. ft®

deprofessionalized, for

most

today at

Sold to bankers in
competitive

security is at stakes
Our
free
enterprise
system,
given a healthy economic and po¬
litical climate, could convert our
resources

in the 200,000 share of¬
fering of Central New York Power
Corp.'s new preferred stock, due

likely to solve our industrial re¬
lations problems.- Domestic civil
war and international anarchy are

natural and human

series

Preferred ft
Inquiry indicated brisk investor

quently are a travesty on the tarianism, even though no signi¬
"public" and would be de¬ ficant group willed it that way.

the

outstanding

interest

tarily established by management
and employees, will in the
long ous} Unless our teachers, legisla¬
run
operate more nearly in the tors, businessmen and other lead¬
public interest than the so-called ers can discover } the authentic
public boards or even "public" public interest and suppress short¬
members on these boards. Public sighted class interests we may be
boards

Central Nft Y. Power

an
impartial arbitration not attractive heritages to pass on
cani;,;be established.ft' This to the next generation. National

board

'ft:

equal

amount

ries and sound ideas, we are not

which

in-''

2%s of similar maturity.

prosperity. Until erroneous ideas
are displaced
with correct theo¬

one

and fix the

the new loan. C
r
Proceeds will be used to provide ft
for the retirement of an

causes

der which management would se¬
lect one arbitrator, labor select

the price

name

terest rate

ft®,ft

;

par, in a total of $50,000,000
ft1
late last month,
dropped back to
98 lk bid and 98% offered.

The American economy appears
to have become the victim of fal¬
ideas

movement de¬

Anticipat¬ an idea; it made him and
then
ing and, preventing grievances is broke him and his entire order.
of the .highest importance,
Seventy million
Germans
and
(3) Or would it be unreason¬ generations. to come will suffer
able to

settling

agreement
was
dissolved
early
this week. The
bonds, brought out

of Ideas

can

unfore-;/

veloped in the new Southern Pa¬
cific
2%s
when
the
syndicate

occa¬

the: foregoing analysis has
any validity at all, it indicates the
power of ideas.
Ideas are weap¬

manager

now

So., Pacific's Settle

A quick

substitutes

something

seeable should develop to
bring i
a change in the basic
situation.

Bidding for that issue, it will
forced the

reveals

thinking pretty much along

unless

ftftft:'®ft>#®;

recalled,

rate,

investor would require time and
considerable effort.

coupon

underwriting fraternity ,®

the same lines,
indicating that®
investors must prime themselves
for a further
whittling of yields

that merchandis¬
ing of this issue to the ultimate

competing

which offered
price *>f 101.1899 for

same

that the

contrary it must have

have

group,

the road

would

of those "out-the-win-

one

doTfr" undertakings..;
On the

the close of last year.
But the bid of the

fully

were

operation

realized

by the Treasury
Victory Loan 2V2s, sold near

its

for

cost

grudgingly and not without
sional backsliding.

•

humane, reasonable

low

.financing,

that

aware

2.20%

mortgage
setting

basis

going suggestions will in time be
publicly acceptable and then will
be accepted
by labor, although

sug¬

overwhelming majority the
vote disclosed, marking the first
ft step in the program calling
for}

.ft

refinancing

$304,200,000

Current debt involves

thousand

interest

annual

age

ft;

callable debentures and bonds.

distances

Tftft
ft

aver-

of ®.

charge

cal

Officials'of the company
We judge whether a country is 3.37%.
teachers, university profes¬
sors, preachers, radio commenta¬ really free by the amount of se¬ believe it is possible, under pre¬
tors, and other thought-leaders in curity enjoyed by minorities.
It vailing market conditions,' to reand out of the
government, are the
victims of the naive
purchasing

is bad

to be

oppressed by

mi¬

nority but it is worse to be op¬
theory of prosperity. The pressed by a majority;\ :
;
,
"intellectuals" play an enormous
A very few policemen can usu¬
role in shaping American affairs. ally "keep order" when there is
To a considerable extent the new- common agreement on values, ob¬
intellectuals in America have the jectives and means, because it is
same blemishes of intellect as the
really the community that keeps
power

new-rich

have of

manners.

See

the works of Sinclair Lewis in the
latter field; we need a similar de¬

right to strike, to mass picket, to
promote unionism, will in time
bunking of pseudo intellectuals.1^
also be recognized as a limited
If it is true that labor as a
right, to be judged in the light of
the right of the people not to be whole can profit only by baking a
bigger pie rather than by getting
struck against, not to be
picketed a
larger slice of an existing one,
and not to be coerced

market."

"Labor's

& Co.,

impor¬

absolute; even the right of
free speech is limited by the law
of slander and libel.
Similarly the

upset that figure.

Rucker,
Page

this

material

come

are

never

price down?"','-.:". - ft .ft,ft,ft.;;-:.,
"No, the raw material price is
determined

The human aspects of

Criteria for Settling Disputes

money.

cut that

many
employers have much
learn in this latter respect. ',

it?

of interests.

dustrial relations.

And Mr. Nunn
always says, "I think you ought
to have more} .Where shall we get

*, "Can

recognition of the mutuality

interpreted
as .justification
for
neglecting the human side of in¬

Management gets 1%. ' Shall
Jf-we whittle a little off there?"
®'No, we don't want to do that."
,

and

other variants,

barred

new
a

name

therefore, the economic emphasis

"Every year, Mr. Nunn says, the
ft workers come to him and say they

could

$81,602,000 of

bonds last week on

frocked

tance equal with economic issues;

2%, and

but

ftft Industrial

industrial relations

ing <{who gets what."1*
Under the Nunn-Bush system,
the workers in the plant are
paid
20% of the sales value of produc¬
tion. Management gets 1%, The

tries;

Industrial Relations Involve More
Than Economics

determining "who gets what." A
Living and working together re¬
few employers are
doing some piquires ^tolerancej understanding
oneering work in trying to estab¬

ftquit at
withdrawals

such criteria

In¬

only then, was it in the urban transportation indus¬
Henry Nunn had try. The international union and

when he said that his annual wage

at 102.19 to
yield the buyer
just about 2.42%, which is
only
22 yield points above
the basis of

group

which bid in Union Pacific Rail¬
road's

ex¬

could

avoiding strikes and

Then,
clear

and

method of resolving disputes

said, "We won't let

him."

Boss thinks

have cpme to the conclusion that
the whole system for determining

forced

for

going on. Industrial relations
within his plant had been very

more?

power

some

would

speechless to think that that kind

more?,'?

skill

organized

gested above.

of theft—fop that is "what it was—

workers

but

should

was

similar

bonds

Undoubtedly the banking

working
conditionsft< were
to the averageftof other
of

2y2s,

the

equivalent of a 2.453% ftfc
basis, and proceeded to reoffer the <

not be

condition of employment

labor

The employer stated that he was

Butch

though Butch and Boss

under

paid the company
price of 101.27 for the new
or

strike, with effective penalties for
violation, so long as their wages

day ft somebody
not understand
another job at good; Tie could
ft.
$4, so the Boss puts him back on why no one had ever reported
the matter to him.
a
$4 basis rather than lose him.
The wo rke r not iced hdw
Maybe Butch gets his dander up
and goes on strike, or threatens shocked the president was, and
to, and gets his $4 back that way. added, "But he never does it any
more."
'* 1
Maybe prices stay up so long that
The president, of course, figured
Boss finally dares to raise wages
without being pressed by any- that the worker was just pulling
his; leg, so he said to him, "What
ftft body. •
...
"Still nothing is settled. - Al¬ do you mean, he never does it any
"Maybe

else

ers

in these industries to agree not to

dividual

and

times

be unreasonable to require work¬

will,

week."

other

the

back

come

until adequate substitute workers
had been found? (2) Or would it

perience in the community?

"How many times a week?"

"Oh,

robber.

o'clock

five

would

un¬

which they

under

would agree not to abandon work

equal

"Yes."

Butch doing all the work and get¬

Butch knows Boss is

contract

workers

punch the clock again, and then
go home."
The employer, shocked at this,
said, "Did he do that?"

$5 gold-piece. That burns
plenty, because with

Butch

•

town.

night

unreasonable to hire workers
der

and

•

other.

The

Bankers

ria.^For example, in.the: case

public utilities and other in¬
dispensable services would it be

large issue.

experience

with another employer,

dent of

making twice as much now as he
did on the original deal?
It prob¬

■

hard

was

meant by this until an

another
the downside and

tional investors who must
finally
absorb by far the bulk of such

and

accordingly developed no little
resistance on the part of institu-

All agree

$15 for the hog—$5
tween them.

Bargaining

market' through

yield layer

the

general validity

of the fore-

15 "Industrial Relations in Urban
Trans¬

portation,"
versity

by Emerson P.
of Minnesota Press,

16 For

praisal

good
the

beginning

Fatalistic

Schmidt,

Uni¬

1937.
see:

View

"An

An-

Capital¬

ism," Machinery and Allied Products Insti¬
tute, Chicago, 111.

itself in order.

When

commu¬

nity splits into factions, the police
may be quickly overpowered; any
one

who

has

seen

this

occur

knows how fragile civilization
proves

when

the

divisive forces

become overpowering. ft-, ft'}' ft
The solution to our industrial
relations

problems must be the
expression of the general commu¬
nity sense of what is right. Then
the amount of coercion actually
required will stay at a minimum.
Education in both economic mat¬

ters and in matters of human re¬

lations must bring the solution.

fund

large part of the debt at

sizeable

reduction

costs.
,

ft.

.-ft,

ft ftft.

ftft

carrying ft

,;®®;.®ftftft®

Higgins, Inc. Offering

;

ft:ft

Current ft discussion
that public offering of
stock

could

reach

end

the

this

new.

ft indicates ft ft
the capital ft
Higgins, Inc., i ft

market

week;

toward

the

early next
;ft ft'-.ft';..','
ft
This operation undertaken sohie ■; ;
weeks ago ran into a snag when
ft l;
the Securities and Exchange Com¬
mission charged the bankers who
originally headed the group with
or

week.

infractions

the

Securities

Act

and

imposed a mild suspension.
The operation involves the pro- .ft.*,
jected sale of 900,000 shares of
capital stock of the new company
to the public and the
payment of

300,000 shares additional to Hig¬
gins Industries, now in liquida¬
1 tion, in return for certain assets.

.Volume

163

Number 4474

out

More Heard at Savannah
i;'

(Continued from page 1495) *

•

respect to my country
ances

trade

balances

central

our

able

were

bank.

This

;

war

years:

It should

sold

that

than

abroad

recalled

monetary

our

reserves

increased, not because of higher prices obtained for those
products abroad but rather because of a larger volume of exports.
,

"Although

our monetary reserves are more than

taih stable the
that

the

present peso-dollar rate of exchange, it is likely
future we shall again be confronted with ad¬

payments.

Before the war Mexico's exports nor¬

mally exceeded her imports by

during 1946
$90

ample to main-

near

balances of

verse

had

million.

$80 million

some

However,

year.

unfavorable trade balance of approximately

Notwithstanding this situation,

of gold
foreign exchange not only remained the same but were slightly
increased.
The deficiency in our visible items was compensated
by the 'invisibles' in our balance of payments,' namely, the dollar
remittances made by the many thousands of Mexican laborers who
holdings

our

and

•came

:the'
■"

and

Answer:

during the

to purchase.

relieve

the

labor

shortages

United

the

States

and

during

"As- other

pation, Czechoslovak
completely rebuilt so
Reich.
be

labor shortage no longer exists in this country,
laborers are returning home, Mexico will no longer have

this

source of dollar exchange.
It is very likely then - that our
unfavorable; trade balances• will have to be compensated by draw¬
ing on our gold and foreign-exchange holdings accumulated during
the war period.
Our monetary authorities are well aware of the
situation and are prepared, to take such measures as may be nec¬
essary to safeguard our balance of payments.
Among these, in¬
fluence may be exerted on Mexican consumers to discourage them
from purchasing superfluous luxury goods "and also to enhance by
-all possible means the Imports of machinery and equipment which
"will increase the output of goods, raise the productivity of our
Jabor, and result in more permanent benefits to the people by
raising their standards of living.

},x
"The policy- outlined above is indeed sound and reasonable and
will further the efforts of Mexico to industrialize.
It is mainly by

increased production that the necessary purchasing power can be
created to stimulate consumption.
It is no longer necessary to dwell
the generally^ accepted principle of the high degree of correla¬
tion which exists between industrialization and the volume of for¬

eign trade. What will benefit Mexico will also benefit other coun¬
tries, among these the United States as well as others engaged
in exporting industries.

have

direct

for

concern

exporting country

friends and customers in other nations.
For this
the proper and enlightened policy should be to give more
the exporters * of those goods from .which foreign - cus¬

prosperous

reason

facilities to

will

tomers

derive

benefits, rather

permanent

exhaustion of monetary reserves, and may

change

than* to

•

those

who

which only result in the permanent

sell superfluous luxury articles

serious

cause

even

ex-*

instabilityii;;f^yif.S;|^

■■//v "Should an adverse climate for Mexico's development be created
by a short-sighted trade policy and should we fail in averting the
sterile Use of our monetary reserves, then Mexico would be placed
against a wall*
For, evidently the International Monetary Fund
was; not intended / to remedy such a 'fundamental disequilibrium/
The Fund < can only/ offer, '.temporary relief but not a permanent
solution/ Consequently our} country might well be forced to take,
in consultation with the Fund, such measures as would insure the
fundamental stability of our national economy."

Czechoslovakians Interviewed

"Chronicle'' representative discussed with several,mem¬
bers of the Chechoslovakian f delegation the efforts being made in
that country to recuperate from the war. In the
The

course

these

information

interviews

the

writer

asked

for

several

questions, which are listed
below, together with the replies. The first, fourth
fifth

and

questions

answered

were

by Mr.

Jan

Viktor Mladek and the second and third questions

Prof.

Alois

Krai

Czechoslovakia.

the

scrapped
to

Interest

Bank

Czechoslovakia

Germanized

was

serve

war

also

was

and

caused by
the occu¬

its

structure

the military needs of the German

machine caused

the .industrial equipment
Moravia
which
were

great deal of damage

of those frontier provinces of Bohemia

highly / industrialized.

The

Germans

lot of such machinery, partly because they were unable
supply the necessary raw materials.
As it was, the end of the
left

war

tories

Czechoslovakia

were

badly

with

damaged

substantial

very

fighting

through

losses.
and

Some

bombing,

looted

and
and

the

fac¬
some

practically all had substantial claims against

banks

were

man

Reich

Germans.

masters; " The

which

goods
were

Many

who did not return from the

without

for

Losses

private entrepreneurs.

war

they

were

Ger¬

forced

higher than could be borne

enterprises, owned by Germans
who fled the country, remained

could

Government

not 7 act

otherwise

than

to take over the

ized

charge of such property, Besides that, the organ¬
labor asked for such changes which would assure appropriate

degree of social security/
in Czechoslovakia does not

wages, steady employment and a higher
"As a matter of fact, nationalization

mean
fundamental change which it might have caused in other
countries, because so many enterprises in Czechoslovakia were in
public hands all the time.
Railroads, many banks, all of the public

utilities, and especially armament factories, - were either completely
to a great proportion in the hands of the Government; com¬
munities, or semi-public bodies. This has been so for: generations,
and it means, therefore; that not the principle of Government en¬
gaging in business but the scope of its application has /changed.
"Another important factor in the economic life Of the country
was cooperatives,* which formed a large chain with- a tendency to
grow and expand.
It goes without saying; that the individual entre¬
preneur continues to be important in lines pt production and dis¬
tribution not affected by nationalization.
Not all; of the production
and transportation; has fallen under the nationalization decrees.
Many Undertakings of quite an important size will go On;working
without change in their legal or personal standing.
or

Government

the

Feb. Cotton Consumption

took

over

important

industries,

month of February.

consumed

746,994

bales

lint and 91,296
compared with
bales of lint and 96,242
of

bales of linters, as

811,368
bales

linters

5,154,213 bales of lint and 604,679
bales of linters, which compares
with 5,651,960 bales of lint and
868,521 bales of linters in the cor¬
responding period a year ago.

bales of
bales of linters on
establishments
on Feb. 28,
1946, which compares
with 2,366,336 bales of lint ana
328,268 bales of linters on Jan. 31,
1946, and 2,227,851 bales of lint
and 317,378
bales of linters on
Feb. 28, 1945.
;.„V
;
; •>./.,
There

2,373,930

were

lint and 353,579

Jan

Viktor

tries.

;

Mladek

and
Feb. 28, 1946,
there were 9,418,209 bales of lint
and 53,557 bales of linters, which
compares with 9,964,513 bales of
lint and 48,271 bales of linters on
Jan.
31
and 12,401,385 bales of
lint and 33,014 bales of linters on
On hand in public storage

compresses

1945."

Feb. 28,
,

7 There

were
21,628,796 cotton
active during February,

spindles
which

with 21,629,832/
spindles
active
during
January/ 1946, and with 22,219.696 active cotton spindles during'
compares

cotton

February* 1945.

one

In New York

"Concerning
which

fell

interest

men

and interest in enterprises
nationalization decree, Czechoslovakia has

foreign

under

to be run

the

investments

solve:. these questions in agreement: with' the foreign
.

interested parties witJhout discrimination, being guided by the desire
not to stop work r and that ,these enterprises should keep on pro¬
ducing to < the satisfaction of foreign interested parties as well as
v

of the entire economy."

Can You Tell Us Something About the
-

Slovakia?/

Monetary Reform in Czechp-

1,1 '"

Answer: "At the end of last year
ize

Czechoslovakia began to real¬

its

plans' for a monetary reform of the country which were
already prepared during the war.
First, all the means of payment
issued under the German occupation were withdrawn from circu¬
,

and

rency

appropriate measures were taken to put the new cur¬
sound basis.
This measure proved to be successful.
People began to appreciate the new currency, recognize its value,
and accept the transitory difficulties with great;understanding.
"The second phase; bf the monetary reform was the raising of
the price and wage level by about 200% as compared with prewar
prices.
The aim was to bring closer the official ceiling prices and
the prices oil the black market. This measure;also>enabled to bring
into harmony the various price levels arbitrarily set t by the Ger¬
man occupation
in the different provinces of the country. At the

Thralls

with

formed

Co.,

(Continued

on page

offices

much

cers

$ of

the? firmv

and

ronstriintivp

Development has
rnlp "

;

•

tO:

Answer:

"In

the

American

Raymond Smith Joins

stating that Czechoslovakia eliminated, ifself
economicr relations

Incorporated] Hv

Weeden & Co.,

Wall Street, New York

vakia

but

with

the

western

political necessity; it is

a
-

also

the

attempt by Germany to
alliance

with

the

formerly Lt. Commander, USNR,
has

become

associated with

with

eastern

worker

good

the

all

Europe

his

and

name

popularity

western

renew

her aggressive

Union

West?

was

and

coming

intend
years.

-'I.'.-.'':'-

''!

'SsH' ^

vVia i

Price $1375 per

be ;found
eliminated from

This

the

world

against
policy.

J;>;d7/

''saeoiihki

states

intensification

in which

the

may

undersigned is legally authorized to act

eventual
economic

Thornton & Coi

but, on the contrary, supports
broadening of economic rela¬

maintain

but

Czechoslovakia

also

increase

cannot

its

with- o't

be /obtained from the undersigned only m,
as a dealer
.in Securities and in* which such Prqspecttt^ may legally, be distributed.

bidi7:--^-Copies - of; the Prospectus;

The political

countries, be they the countries of central and
of the West, where the skill of the Czechoslovak
products always
a
enjoyed
good
name. '/ This

not,only

the

Common Stock
.v.-.'-*

defense not only of Czechoslo¬

intercourse with her does not exclude
the efforts of Czechoslovakia for the

tions

circumstances to be construed

(Par Value $1 per Share)

can;often

countries.

entire

Soviet

60 Wall Street, New
March 19, 1946.

City, an¬

that J: Raymond Smith,

nounces

Appleton Manufacturing

opinion is
entirely j unfounded. - Czechoslovakia : exported one-fourth 7 of its
national product to the whole world from which it
purchased needed
raw
materials and partly also food.
Cooperation with the Soviet
Union

under

//■■

125,000 Shares

::L

East

press*.opinions

Offi¬

Jerome

Staff of Weeden & Co.

NEW ISSUE

?oil#.

>VilI Czechoslovakia Orient Herself Towards
i

opportunity to play

are

partment at Kidder, Peabody &
Co., prior to serving in the armed
forces.
7^..-'///,•-'7:• ■'//; 7 : r 7 7 v

Bank

International

Wall

Thralls, Jr., President; Marvin A J
Thralls, Vice-President and Treas¬
urer, and Jack T. Thralls, Secre¬
tary. Jerome Thralls was manager
of the U. S. Government bond de¬

offering of this Cpnimon Stock for sale or a solicitation of an offer
buy any - of such Stock. The offering is made only byj the Prospectus.

to be

■

for .Reconstruction, and
great

Here the

war.

been

in the investment business.

by the

has

Street, New York City to engage

1526)

This advertisement is hot, and is

inter?st in- a speedy reconstruction of these counThis could be achieved by appropriate loans to those of them

Which suffered

City }
Inc.,

Czechoslovakia, always closely tied commercially
with all the countries of this area, has a: deep

hand in consuming

Thralls & Co. Formed

"Central and Eastern Europe suffered greatly
I:by the war and faces the problem of profound
I- economic reconversion to a peacetime economy.

and

is sufficient proof. that nationalized factories have
sound commercial basis.//,//
/

/
Answer; "As an industrial and exporting
state, the Czechoslovak Republic has an interest
/ in the stability of exchanges which facilitates the
/ .greatest and broadest volume of international
trade;

January

bales of lint and 120,330
bales of linters in February, 1945.
In
the
seven
months ending
Feb. 28 cotton consumption was
781,149

1946,
amounted
to

In the month of February,
cotton

Czechoslovakia in the Fund

Has

Wash¬

March 18 issued its re¬
port showing cotton consumed in
the United States, cotton on hand,
and active cotton spindles in the
on

Bank?

and the

Bureau

Census

The

ington

appointed by the Government to run the
variuos lines of production are specialists and not politicians.
This
thing must be said:

What

National

and

lation

•:v

industry
as

Moreover, the German

"Where
matter

states,

problems of economic and social

This structure, from the
peacetime point of view, could not
nor
could it assure sound economy of the country.

"Now that

if it wants

overseas

maintained

European

confronted after the war with the

war,;;^y:f;%;0;::'f|#^'^

"It

supplies from

reconstruction made imperative by the profound changes
the war in economic structure of the country.
During

deliver to the

as our

food

some

increase—as it

What About the Nationalization of Industry? What Does It Mean?

favorable

resulted from

situation

materials and

raw

maintain

does—the standard of living of its
population, whose tastes in the past have been greatly influenced
by close cultural and economic ties with the West."

the accumulation of gold and dollar bal¬

was

1525

THE COMMERCIAL & FINANCIAL CHRONICLE

York 5, N. Y.

the

THE COMMERCIAL &

1526

looked

where

the

Tomorrow's
Markets

and

by Saturday of last week
up
again. An im¬
portant signal was seen by

Walter

Whyte
Says^000&i

started

the method of advance.

=By WALTER WHYTEs

tween 192 and

lot of stock offered.

| Be¬

194 there

was

logic
Major position indicates high¬
were
applicable to the stock
er prices.
However, a minor
reaction a possibility before market, it would seem highly
any real
advance is likely. plausible that between 192
Trading

barrier

upper

range

Downside support

is 198-202.

and

194

into

run

the

market

would

stone wall and turn

failures in? February
higher in number but lower

were

amount

of liabilities

Thursday, March 21; 1946

More Heard at Savannah

Business

involved

.?■???:;

(Continued from

than in

January. When compared

same

time it

with

year

costs

page

of production

higher

ago,
failures? were
both
number
and

amount

liabilities

culture

liabilities

does

involving $1,557,000 in Febru¬
ary
last year.
"
'
! ?'?-?' * •

profitable for agri-production rat full speed.?
have proved correct.
The

resume

present

dangerous threat. ? The difference between the
the, black, market prices wasnarrowed to^ ar

?■

??,.;???* ? ??• ?. ;rv

?,■?

■

>';?.??'

What Will Be the Economic Consequences in Czechoslovakia
of the
Transfer of Germans to Germany?
J
?
V?*

AH groups into which this re¬
port is divided, with the exception

Answer:. "For Czechoslovakia the transfer of Germans fi'om the
region is a question of fundamental political importance.

??•

border

manufacturing group, show
failures in February than

January.

not

prices and
small margin."

industry

official

January, involving $4,372,000 and

of the

measures, too, at least until now,
black market was eliminated to such
a
great extent that today
Czechoslovakia belongs among those states where the black
market

$2,983,000
compared with 80 in

well

•?;i:?.-????• v

1525)

endeavored to bring about an
equilibrium between
and prices so as to make it

was

These

involved.

Business failures in
February, ac¬
cording to Dun & Bradstreet, Inc.,
totaled 92 and involved

around

CHRONICLE

Business Failures in Feb.

aver¬

going.
You know
what
actually, happened.
Stocks got down to about the
188 level, hemmed and hawed
ages were

FINANCIAL

The state could not leave within its borders

group of people

strong German nationalistic feelings who of their

own

necessity;

When the amount of

state,

with,

volition

de¬

again.
For on four liabilities is
should hold at 189.
clared themselves to be citizens of; the German Reich and
refused
considered, only the
previous occasions the market manufacturing and commercial loyalty to a state which gave them opportunities for a nbrfnal de»;
Since the previous column
has shown inability to get service groups had less liabilities velopment.. Because of this, it .presented* adangerous and disin¬
was written the
market has
involved than? in January.
tegrating element within the country which sooner or later could,
through that barrier.? But at
gone down about six points,
Manufacturing failures in Feb¬ again endanger the peace ' not only of Czechoslovakia but of all?
the end of the Monday trad¬
Europe.
For these reasons all Czechoslovak political parties, and
from approximately
ruary were down to 29 from 35
196 ; to
ing day stocks were through in January, and liabilities were indeed the whole nation, demanded, the transfer as an absolute',
188, and then turned around
,

the level.

again. This turn-around, not
important in itself, has ac¬
complished something a little
more
important than surface

also down to

.-?; A
i

So far

r4 4

"hi

good. It looks as
is' beginning to
shine through again, and I
indications show. It isn't what
have little doubt but that giv¬
the market has done, that is
en a few more
days of pleas¬
significant, but rather what it ant market
many

#?■*?.-. *•

Last week the action of the

pointed

How

far

sun

great

■

tape

the

weather,

hasn't doner
i

;

reaction.

would

something else.

was

Extent

duration of reactions

rallies

people who have gotten

wet in the recent storm will

out and again start think¬
ing of what to buy. When that
pop

the

occurs

another

chances

that

are

squall will be upon us.

from

$874,000 in February^
$1,677,000 in January. Whole¬

sale

failures

liabilities of

numbered ;; 9

$888,000,

with

Retail failures numbered

with liabilities of

$258,000,

as com¬

bilities

Commercial

in? January:

Service

failures

our

German

labor: power

cannot

certain,

is sq ;important tbat for • its sake jt is?
certain, even if painful,. losses.
They will be?
the Germans—as many contend—but also by!

measure

ize all
war.

the human and material

These difficulties,

zational
^work

resources

commanded

however, will be only of

and will be bvercome in?

January, and lia¬

$155,000

ary

Czechoslovakia which- will not, as mentioned; above; be able to util ¬

to $215,000 in Febru¬

rose

existence

transfer

economy will be felt
Czechoslovakia consciously'
sacrifices because the political peace which will be

necessary to suffer,
borne not only by

27,

the

our

achieved by this

pared with 22 with $245,000 liabiL
ities?in
January.
Construction
insolvencies in Februaiy. were- up
to 14 from 8 in

question of the

that with

these

assumes

against 3

with liabilities of $16,000 in Janu¬
ary.

denied

difficulties in

effort

which--the

of their;

deinocraey "

short

time

Czechoslovak
are '

before

the

transitory nature

by hard work and organi¬
people within the frame-

developing: ^Very "promisingly.

Belgium's Central Bank Governor Speaks

February were up to 13 from 12
in January, but liabilities were
down
to
$748,000 in February
from, $2,279,000 in J anuary..

Among the many able financiers attending the Savannah meet-;
ing of; the Fund and Bank, is Maurice Frere, Alternate Governor of.

,■

the Bank and Fund and

governor of the National Bank of Belgium.
Maybe not right away; but
by mar¬
When the country is; divided At? Savannah? your-correspondent, asked M.? Frere to 'disciiss some"'
ket performance. - To deter¬ signs of it will almost certain¬ into Federal Reserve Districts it oi\ Belgium'sfinancial, problems. V
His remarks are - reported; in:
is found that the Boston, Cleve¬ full below. ,M. Frere emphasized the improvement which has- been?
mine that, an entirely differ¬ ly appear on the horizon.
The tune which will prob¬ land, Atlanta,. Chicago, and San taking place in Belgium in recent months, saying:
r
:
ent set of rules, or behavior¬
ably usher it* in Will be the Francisco? Reserve? Districts? had U, "Marked improvements have taken, place in Belgium since the
isms, have to be taken into
more failures in February than in
iliberation; of* the? country^ in,^the;rway??of?finah(^
one about poor earnings, dan¬
account.
In any case when
January, while the Kansas City improvements are due mostly to measures taken to combat a threat-*
gerous international outlooks Reserve District had the same
ening: inflation.
»
last week's column was typed,
„

are

seldom indicated

•

reaction

Using

the^wind.
yardstick that

was

the

movements

once

started carry

until

they have reached
support points, the level for a
stopping place seemed to be
on

about

180.

There

isn't

any

point in explaining how I
rived at such

ar¬

figure. J First*

of all I don't think I

can

ex¬

plain it. Secondly, when I try
to put the explanation into
Understandable

English,

just looks silly.
Any

way

180? figure

the

and many other things.
You
don't have to-worry about excuses.

seldom pay
are
seldom

off. And
known

reasons

till

after

Louis,

and

Minneapolis

long

run.

while

uary,

positions

long of half
the following

are

dry; about 60, American Loco¬
motive about 36Vi% American
Founders

about

42,

Rubber

sold

was

some

profits.

The

65V6.

about

remaining half

question

February

January.'

Kampf

has

resumed

ment business

Kampf &

under the

Co.,

Orders Executed
New

York

Stock

New

York

Curb

to ,1941.

New

Cotton

Exchange

Board

•

even

they go down a little
than generally expect¬
ed, the cashing in of previous
more

stocks

Schwabacher & Co.

Trade

Orleans Cotton
And

other

Exchange
Exchanges
New

CHICAGO

DETROIT

that

should

not

break the
an

extra

If the

-v >

...

worry about
I merely point
signal to watch out

as a

More next

New York 5, N, Y.

Teletype NY 1-928

San

Francisco

Monterey

—

Santa

Oakland
Fresno

—■

Barbara

[The

Sacramento.

—Walter

•

views

•

Whyte

of the; country.

Such

releases

are

now

minimum.

"Today the note circulation has been brought back to 1,700!
million dollars, approximately three quarters: of what it was at
thej
time of the liberation.
It is covered by approximately 45% in gold
and about 5% in foreign exchange.
These holdings in gold
exchange have increased by 10% since the liberation.
'

foreign'

price level, which owteg?td the absence of foreign imports

had risen continuously during the occupation, since has been lowered,

thanks to the Large imports which have taken place; an&fhis tendencyi

continues.
?

v';?--???"?-v;?:?:-?v???:

-"■ .;?:■:?.??■

'These imports we were

able to pay partly because of our own
exports of goods, buti also thanks to the refund in. their own cur¬
rency, by the United States, Great Britain and Canada, of the ad¬
vances made by the Belgian Government for the upkeep of their
armies.
The country Veceived als° deliveries in kind within the
frame of X.end-Lease;and Mutual Aid Agreements.1- '
^
:"Belgium received, also a loan of 100 million, dollars from the
Export-Import Bank, and another of 25 million dollars from the
Canadian Government.-• V?1- J1 •'
-

-??????-?.?:?\;>;V?v;?:??:??"???:?????'?|?|

situation is well on the road to recovery.: The
ordinary budget of 1946 shows an important surplus, and the rapid'
increase of tax receipts, gives hope that an. important part of the'
'

"The

budget

exceptional

expenses:,

currefit. income.

resulting from the
■
:.?••, .-:•? >

"Exceptional taxes on war profits and

approved

;

by? Parliament in October 19t45.

is to .redeem the
frozen

"Owing

realized

to
the

1944.

this

bonds remitted

war

a
...

will

hard-fiscal

The

purpose

of these
of the

in exchange of 60%

?;??,?:V?'???.-??;

very

covered

•?';? ?;/"??•:?•
5% Acapital- levy were'

■,?.:?
effort and

the

economies

establishment of the budget, the

torlif»ifcitsri*ew borrowings in. 1946 to

Government hopes
strict minimum. As regards,

expressed in this
foreign ^currencies needed^--to pay^for the imports?, they hope that
necessarily -at ariff
the ? re vlyal
- exports
which is .irapidly taking, place, will soon
time coincide with those of the
Chronicle. They are presented as vyiek^a^important part of what is required.
; ;
?v?
"The reparation of war losses and the reorganization of industry
those of the xiuthor only.)
article

Thursday.,,

revival

bank the enormous amounts that this effort required at a time
when;
[the capital market had eeasedr tor function and when savings-were!

funds

(Associate)
Chicago Board of Trade

economic

<fThe necessity for the Belgian Government to provide since the|
liberation for the upkeep of Allied Armies on
Belgian territory, and|
its desire to: contribute in all possible ways to the war effort have!
to a certain extent compensated the energetic deflation which was,
practised in 1944. In fact the Treasury had to borrow from the central;

taxes

interest.
concurrence-

yet.

York Curb Exchange

Private Wires to Principal Offices

looks

to negotiate. There

cause

•

range

one

it out

for.

Stock Exchange

COrtlandt 7-4150

PITTSBURGH

York

14 Wall Street

N. Y.

GENEVA, SWITZERLAND

Members

New

N.> Y. Cotton Exchange Bldg.
NEW YORK 4,

tough
is

Inc.

the

transformed*"

40% have been progressively released in

being continued.

reduced

still hold. The answer is
that you now have some room
in which to maneuver; and

you

198-202

Exchange

New

Street.

tensified.? On the up-side the

Pacific Coast Exchanges

Exchange

Chicago

name

730 High

figure the possibility of ^an¬
other reaction will become in¬

?;,? />

Exchange,'

invest¬

Mr. Kampf conducted his own in¬
vestment business in Newark prior

point and make it 189.

H. Hentz & Co.

York

his

market gets under the latter

Securities

Commodity

with

N. C. Kampf Resumes
NEWARK, N,J.—NathanieLIC;

held if the
averages
190 level.?? Permit

1856

"The amounts thus blocked have since then been
to 60%, into long term Government bonds bearing

The remaining

ever,

Pacific CoiaSt

.Germany.

arises profits permits you. to. hold
positions on. Broadly speaking, how¬

jWhich Were held at .the time of the invasion of. the country ? by-

now

what to do with the

;

than

amount of 45 dollars per
head, was deposited in blocked accounts.'
Deposits in current account, which had also increased considerably:
since .1940, were blocked as
well, with the exception of those amounts

the

remaining dis¬
tricts, with the exception of the

stocks: Air Reduction about

52, American Car and Foun¬

"On a proposal by the Minister of Finance,? Mr. Camille; Gutt,;
banknotes in circulation at the time of the .liberation of the;
country were withdrawn, and their counterpart, except a maximum
?

all

Districts had less liabilities
involved in February than in Jan¬

involved

You still

last week with

Members

not have an,y, had more liabilities

Exports—Imports—Futures

X'\

"By the end of. the German occupation in October4944, the note'
of the National Bank of Belgium amounted to
2,320 million
dollars, as against one thousand million in May 1940s. ?■'?■ ' •
■ - • '?
issue

serve

Dallas Reserve- District which did

Established

Re¬

in the

The

SUGAR

St.

the fact. Stick to market per¬
formance. It will pay better

Chrysler
about 120, Electric Auto-Lite
about 71, Superheater about
30, U. S, Steel about 82 and

NEW YORK 5, N. Y.

DIgbf 4-2727

easy

and the Dallas Reserve
District did not have any. When
the amount of liabilities involved
is considered it is seen that the

have to do Philadelphia?- Richmond,
Chicago,

Bethlehem about 99,

99 WALL STREET

always

are

is to remember that excuses

Steel

LAMBORN & CO.

They

to find. What you

number

clo

not

Volume 163

will certainly necessitate important calls on

'try.

to their

the savings of the coun-

internal "market will furnish an
important part of what will be required and that the country will
are

1527

% THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4474

opinion'that

the

maximum; but also, primarily, by the self-sacrificing efforts
Yugoslavia finances its tremendous tasks of recon¬
almost exclusively from its own resources and mainly by
voluntary work of her citizens.
'
/
'

Maxson Food

the

presort to foreign loans only for definite purposes and up to strictly

"Certain measures in.

our financial policy succeeded in prevents
increase in prices,
Full control of wholesale and
retail prices, control of wages, salaries and interest rates
presented
Statement by Wm. McChespey Martin, Jr.
>/
a
further step in the economic and financial
stabilization of our
MMm'. William McChesney. Martin, Jr., Chairman [Of the Exports situation. During recent months a small
drop in prices has been
Import Bank, who arrived in Savannah the latter part of last week noted in our country and we
hope that we shall have further satisfor the closing sessions of the Inaugural Meeting,,.',
,\w factory results in this direction. As far as our money circulation
of the World Fund and Bank, expressed in qn\;
;is^cbneerned, today it is lower than it was In Yugoslavia before

limited amounts."

ing

Systems, Inc., at $10 per share has
been
oversubscribed
and
the

.interyiew for the "Chronicle" his confidence that
The t\yo institutions would soon.be on an operating "'
.basis.
"The rapid progress made at the Inaugural
/Meeting,'" he said, : "makes "this result .certain." 1
,Mr..^Iartin
a member of the National Advisory.
Copncil on International Monetary and Financial
Problems created by the Bretton Woods legisla- '
,

tion arid in this capacity participated in

from
"

response to a question/about the relationship between the Export-Import Bank and the
World Fund and Bank, Mr, Martin 'emphasized
that the institution of which he is

ing

the

overcome

of economic

head,is"play- '(

countries

and

prepared
'

country, but

fight against

■

devastated

these

difficulties

ties with the

rest

hoping
a;

to make
equipment in

that at the

same

time

the United States until such time as the Interna¬
Wm, McC. Martin, Jr.'■
tional JBank can begin to operate.?'
Mr. 'Martin
described the World Fund and Bank, the enlarged role of the Export-

plant
and

Bank

the

The'

requested of Congress iu accordance with

recent

recommendation of the National Advisory Council.
He said that the!
Bank was engaged at present In negotiations for Jong-term recon-i
struction credits to a number of countries, including China, Czecho4

companies,

tional

and

program

large

institu¬

commercial

individual

tomers,

and

through

establishing

cus¬

users

wholesale

and retail trade channels.

Paper Exporters Elect

world.

Adalbert

"FrorpThe very beginning Peru understood the importance That;
had for world'economy, as Well (as vfor its
own, but its main interest rests on the Bank.
"Like

Latin

most

American

countries Peru has not

Inc.
of

acute

Ex¬

Paper

who, in review¬

sized the need for breaking down

the indifferent export attitude of
American paper

mills and promot¬

ing this country's position in the

control and
currencies to a certain rate with the
long as they; follow" an inflationary fiscal

Almost all countries have a form of exchange

export of

have fixed the parity of their

but; -as

States

ing the Council's progress empha¬

^md^ajfolution to the problem of our exports.
oiburrenc^ stabilization for the Latin American
countries, and particularly for Peru, lies nowadays on their fiscal
policy more than on their international trade and balance of pay¬

intention to cooperate with the United

elected to the Presidency

United

Vice-President of National Paper

//-The problem

ments.

was

the

& Type Company,

for imports while we

American; dollar

President of

porters Council, Inc. at its annual
meeting held Mar. 7 at the Up¬
town Club in New York City. Mr.
Greiner succeeds Frank W. Smith,

Peru,, as; a staple producer country, knows perfectly well that should
a decrease in world trade happen, or should prices of commodities
and raw materials ,g© down,
itsjeconomy would be greatly damaged.
In this case the Fiind could be of great importance to meet payments

Yugoslavia Wants to Cooperate With United Nations

Greiner,

China American Paper & Pulp Co.-

exchange problem arising from a passive balance of international
payments because during the last years the favorable balance of
trade has permitted an increase/in its reserves though not to the
extent ' that other American countries have reached. ( Nevertheless

in March.

In expressing Yugoslavians

sales

its

tation

the Fund and the Bank'

Slovakia, Italy and Poland, and that negotiations with the .French
"financial mission, headed by .Leon Blum, were expected to begin
late

covering airlines, other transpor¬

would

working
capital,
new
equipment, research
development work, and the
and

extension

JPeyuyian Stresses Latin Interest in Bank Loans

position to exchange goods and services with the United
States on an expanding scale."
The lending.authority of the Export-Import Bank was increased
by Congress last July from $700 million to $3,500,000,000/for making
reconstruction loans; and. other purposes..
Approximately .half ol
the Bank's resources have been loaned or committed,Tthus leaving
about $1,750,000,000. available for new credits.
Mr. Martin said that
a further increase of $1,250,000,000 in the lending authority of the

Inc.,

-Systems,

distributors of pre- *

In the following statement for

..essential purpose of the program," he added, "is to put ^foreign courii
tries in

Food

cluding

the "Chronicle," Mr. Jose Barreda
jlmport Bank, and the British loan now under consideration by Con¬ poller, Bern!s .Alternate, Governor of the Bank, gives a representative
Latin American rview of tlie meaning of the Bank to that part of
gress a& "indispensable: elements of a financial program ,d8signed to;
assist in the restoration of the economies of war-torn -countries,

issue.

ply the proceeds of the financing
corporate purposes in¬

fpll .understanding of the hardships we face after four years of
t

the

for general

shall find in these organizations

devastating occupation and■ Warfare."

subscription

;

cooked frozen foods, expect to ap¬

and
\

a further step in the establishment
of the world.
We shall attempt, by

Corp.,

Maxson

accorded

processors and

are

economic cooperation with the United Nations, as much as possible,

them

enabje

supplies

.time

them/

our

participation in these organizations, the Fund and Bank, to further

_&ur

ing dollar credits available to liberated and warpurchases

same

Maxson

pation in .this, conference represent

interim role with respect to reconstruction
loans.. That is, the Export-Import Bank is -mak¬
devastated

the

were

privileges, took a substantial part
of

".Our signing of. the Bretton Woods agreements and our partici¬

•

urgent

re-establishment

.J:vQ-;in
•

who

starvation in especially hard hit parts of the country.
We are-aware of the difficulties before us in the-financial and

economic

the prep¬

arations for the Savannah conference;

announced
ers

"With its /help of food and other necessary consumers and pro-:
ducers -;goocls, UURRA has done a- great deal toward -helping us;
maintain prices and of course toward helping us to save our people

Eberstadt &,

;;

the underwriter,
Co., Inc., it was
March 19.
Stockhold¬

closed

books

•

Market

..The public offering of 475,000
shares of $.50 convertible pre¬
ferred
stock
of
Maxson
Food

great

any

•

System

Pfd. Stock

citizens.

our

struction

ucts to

paper

and

paper

prod¬

level as high as that

at¬

tained for its industrial

products.
policy, the internal purchasing power of their currencies decreases
/(Nations* Mr. >tavoslav Dolinsejc, bis country's £k>yerno^b^^
and Bank and First Vice-Governor of the National Bank of Yugo¬ continuously, as it is measured by the price indexes, while the ex¬ It was reported that the past year
slavia, gave the following statement to your correspondent. Ip this ternal or foreign purchasing power remains the same on account had witnessed an increase of over.
statement is a suggestion- that Yugoslavia 'hopes to benefit (frqrjv the of the fixed rate of exchange, and the small rise, in prices in those
25% in the Council's membership*
■; Fund and Bank, particularly the Jatter.
Mr. Dolinsek sketches .the countrifek where the. Latin American republics dor most of their pur¬
The/ Council also elected
J.
history of the measures Yugoslavia took to fight the inflated, currency chasing, namely the United States,' Canada and the United King¬
dom.,! This loss of balance between the/internal and the external Francis Strub, Vice-President of
left after the .German occupation. Mr. Dolinsek said:
^
partly in the Tall of 1944 and partly value of money creates a great demand for foreign exchange and, Parsons .& Whittemore, Inc., as its
;
fin April and May of 1945.
The liberation came at a "time (when therefore, is a forces against the stabilization of their currencies. The Vice-President, and Kenneth (W^
Yugoslavia was in a very difficult situation.
During the war she Tixed/parity or rate-of exchange in this case can be preserved only La than of Moller & Rothe, Inc. as
through the exchange control.
lost about 1,700,000 human lives and her material losses were among
In addi¬
"Most Latin American countries have conserved during the war its Secretary-Treasurer.
the greatest suffered by any of the peoples of Europe in the battle
.

.against the

into
to

the country

seven different kinds/ of ppi^rencies
legal tender on occupied territory.

serve as

"Of

all these currencies

course

tion to the officers, .the new Board

rency

problems facing the Yugoslav authorities
immediately after the; liberation of the eastern part of Yugoslavia
in the fall of 1944 were connected with'the unusually difficult cur¬
rency and financial conditions.
Namely, after the occupation of
Yugoslavia in 1941 the enemy, at the same time that he was smashing
/the qationa) unity of Yugoslavia, was also breaking up her economic
unity.
In place of the unified Yugoslav currency which was in
circulation at that time—the Yugoslav dinar—the enemies introduced
'

their exchange controls only to fight the effects on their Cur¬
of an inflationary fiscal policy and Peru, which for many years
one of the few countries in the world without exchange control,

years

enemy,

"Some of the greatest

were not

which

was

policy followed by many of the Latin
in the last, few years and the maintenance of
exchange restrictions are inconsistent with the purposes of

dent of E, deVries

Co. and Olaf

vits & Javits, 165 Broadway, New
York

^pa^ic^an<^ development; by public WP*ks which^ will ^qqire great
'

City, will continue as legal

advisers /for the Council.

/(Continued on page 1528)

circulation
The "enemy

power was directly, dependent on the amount of money in
;

and the amount of goods for disposal on the market,
financed their troops of occupation and their administrative

apparatus
by increasing the amount of money in circujation. In. addition -the
occupiers used this money to pay-—in those .rare instances when they:
paid—for .the goods which they exported to them countries in
enormouar'quantities.- The enormous proportions of the exploitation
and devastation also caused catastrophic reactions so that the amount
of goods on the market vwas sharply decreased! In that way^ Toward
,the end of the occupation, there were great/amounts ..of money 'in
ithe country /While at The same time- there was, a, very small amount
of goods.
--; .v,r;v:
*
'•((//-/ / j(
j •

TJvs announcement ia neither

offer to sell nor a solicitation of any offer to buy

The offerings ara

mpde only by the Prospectus,

■

•

NEW ISSUE

•

r'h?ri

240,000 Shares

VWe think that
occurred

system
>

one

when we,

of the

rarest instances in

area

important

from

and

circulation from

currency

•,///-

.history

/■;

;

■//;-/ ■,(/,( /:/' :■/;-

-//. ■

seven

practical

different

of Yugoslavia.

ran

that

new

///(

/ZZ///Z

into the hundreds of billions to

Yugoslav

currency

with the

purpose

occupation currencies with our new.j^oney,
-

"Both

:■'(• '//';

'.yo-j /■

pf replacing the

financial

pQlicy

was

revenues

was

made possible.

unified and that.was

$1.00 Par Value

In this

way

economic

J"V

* ,1}

8. G.lCaxitor/& Co.

new

Yugoslavia. Maintaining the buying power of
the -country and maintaining its parity
foreign -exchanges were made possible not only by-very strict
curtainment of state expenses .and. by. the increase, of state .revenues
policy of

Yugoslav dinar within

the

with

a>Ic?

Price $4.25 Per Share

always one. of the most

urgent problems in the general organization of national" life.
"The currency reforms .meant only the first, step in the
the

•

Jd;

problems were solved in the least; possible time
the re-establishment of the monetary unity of Yugo¬

the collection of state

'-r-

slavia, which led to the renewal of her economic and financial unity,
.Was
.achieved.
Economic barriers established by the occupiers
between the various parts "of Yugoslavia were done away-with, and
•

'$■

■'/

Common Stock

these

and with them,

//; ■:.'■= //;.

^1 ^

our

circulation pear the prewar level. • Sepon.d, twe firmly .established
the rates .of .exchange from those which, existed during th® occupation
the

Clarostat Mfg. Co., Inc.

We created
way solved

First,We decreased

problems..

amount that,

and in

ones

;•

in the middle of 1945, re-established our money

with it the economic unity

and

money

two

one

h^yi

{

Ja-

Nielsen of Elof Hansson Co.

the .Fund and will bring up in the future many conflicts because
most of those countries are now interested in a policy of economic

were

re¬

Paul Harying, President .of .Hary¬

"This inflationary! fiscal

covered and their buying

include the

ing Paper Co., Eli de Vries, Presi¬

American countries
severe

Directors will

tiring President, Frank W. Smith,

only as a conse¬

,January 1.945 had to take this defense measure
quence of its fiscal policy from 1940 to 1945.

securities.

THE COMMERCIAL & FINANCIAL CHRONICLE

1528

Morgan Stanley Offers
Central N. Y. Power

•''i

(Continued from

1527)

page

which cannot, be provided-only
public borrowing. ^ 1
/
•
expenses,

3.40% Series Pfd.Stk.
Morgan Stanley & Co. heads an
investment banking syndicate that
is

public offering today,
21 - of - 200,000 shares
of

making

March

$100

development of

-v'

by .regular revenues and

pre¬

"Peru, for instance, has a great potential ^wealth which can be
by the use of foreign capital and technical advice that

Power

the Bank

York

Corp.

share and accrued divi¬
dends.
The group was awarded
the stock at competitive bidding
.on March 19 with a bid of $100.15
a

help to provide.

- We are planning the formation
of
development of our natural resources
and two of them have already been working for the last four
years.

special

may

corporations for the

One, the Corporacion

Peruana del Santa,

carrying

on a

Proceeds of the sale of the

stock;

finished

the

120,000 kw produced at

resources

other funds

with

together
obtained

from

•

cash

is a small application of
Tennessee Valley Authority and is
the Santa Valley, where it has almost

the principles that lie' under the

share and accrued dividends.

the

'developed

$101.50

•

"This program of economic development that the Latin American
countries have been considering in the last few years causes them to
give a great importance to the International Bank for Reconstruction
and Development*
•,

stock, 3.40% series, of Cen¬

New

tral

cumulative

value

par

ferred

3 million gross tons. Additional
shipping has been and is being .con-L
tracted for on a large scale.
For this purpose as well as for the

More Heard at Savannah
•

similar work

installation

one

electric

plant

of the lowest

which

costs

power' will be used- to produce ■ fertilizers for
chemical products, cement* etc.
■*
,

will

This

agriculture, different

mixed

within

the

population of the
in which the Company ren¬
service is around 800,000.

area

ders

Total operating revenues for the

December

ended

31, 1945
amounted to $31,988,639, compared
with $31,618,819 in 1944.
Net in¬
year

amounted

come

$3,064,435

1945, compared with

$2,718,436 in

1944.

During 1944 and 1945 the
reduced

com¬

its

outstanding
$14,875,400 and
at the end of the latter year total
long term debt amounted to $52,pany

funded

debt

001,702.

After the present financ¬

ing,outstanding capital stocktwill
$20,000,000 par value of

consist of

the

3.40%; preferred

new

and

1,331,358

shares.

par

stock

common

;

Among those prominent in financial affairs attending as Gov¬
ernor of both the Bank and the Fund for
Norway is Gunnar Jahn.:
Mr. Jahn is a member of the Liberal party and served as Minister

•

Co,,; Inc.; The First Boston Cor?
Glore, Forgan &! Co.;
Goldman, Sachs & Co.; Kidder,
Peabody. & Co.; ; Kuhn, Loeb &
porat'on;

tary conference, the purpose of which is to set the Fund and the Bank
machinery into operation. As a small country, we are dependent
upon an international trade system, functioning without discrimina¬
tion

and

unfettered

far

possible by

ourselves

with

and

the

reestablishment

reasonably unrestricted

international economic

relations, we firmly believe we shall succeed*
"This is my first visit to the United States and I am very much

impressed in several* directions.;

I am particularly impressed with
the general interest shown by the man in the street in world recovery

a fundamental requisite to peaceful
economic, between all nations."
as

developments, cultural and

Brazilian States View a
!v

An interview of the "Chronicle"

and

Bank, Mr. Francisco Alves dos Santos-Filho, in the form of
reporter's questions and the Governor's answers is given below;

the

^with Brazil's Governor of Fund

Are the Fund and Bank to Brazil's advantage, and if so,

how?

Answer;

"Yes, the Fund offers the advantage of guaranty of
monetary stability, and the Bank in general helps reconstruction and
progress. This means to all protection."
Does Brazil expect to
if it

can

use

the Bank? If so, for what purposes and-L*

be stated approximately—when?

Answer: "We have

present intention, but we acknowledge that;

possibility. As I said, there is

Burr,
W.

Incorporated;
E.-

Hutton

Schoel lkopf,-

Moseley

Co.;

Hiitton & Pomeroyi

Inc.; Spencer
Tucker, Anthony
Co.;

Trask

>
&
Co.;
& Co.; White,
Central Republic

Company;

Equitable
Securities
Corpora tion; Harris. Hall & Com¬
pany (Incorporated); The Wiscon¬
sin

Comoany; and Vietor, Com*
mon, Dann & Co.

machinery

present intention."

| Appleton Mfg. Go. Stk.

"Yes,

from the consequences of the wat*/

\
"I arrived from Norway just a
the economic position of my country

Answer;

"Yes, the result

might

during the

materials and

abundance of money in the hands

our people and readily available to them in their bank accounts.1
might mention that at the time of the German offensive against
Norway, the circulation was about 600; million kroner. At the time

of the

liberation, it had reached a figure slightly above 3 billion
Simultaneously bank deposits increased from 2,900 million
The cost of living index, if one can refer to suchj
a thing, considering that the necessities of life
during this period
were rapidly disappearing, did not advance to such an extent that

kroner.

to- 5,900 million;

could call it

1943

the

troublesome price inflation—it reached 150% in
100% for 1938 and was at the time oL the

basis of

liberation about 156%.Since then it has not advanced at.all.:;
.:

'"A

remarkable

development in the monetary picture was that
following the liberation, the cur¬
any steps on the part of the Norwegian

inthe first 6 months immediately
rency

profitably

applied

■

the Savannah meeting:

future

meetings

of the

Answer; "Yes, in general form the delegates exchanged ideas*
establishing a criterion to be followed."
.
,

Is there anything you would like to say specificially about Brazilian;

American questions, having in mind financial and

investments,

ters,

Answer;

trade and the

economic mat-

like?

"Well, in consideration of these circumstances,

made

certain ? the
institutions." ${0

;

organization

)

;and. the
• *

have^

these
'

success

two
'
*

•

circulation—without

from the

above mentioned

requires

only

not

some 3 billion kroner to about 1.5 billion
kroner, because people
deposited in the banks the funds that they had been holding at home.1
As a result of theexchange of the
currency and partial freezing

political

organization

check

and

frustrate

aggression, but the creation also of the indispensable economic conditions suitable to make
...

«The

among

nections.
to

economic

such peace possible.
connections—which are the

nations—are closely related

a
more

•

and

intimate

the political con¬
contribute

It is essential, in the interest of peace, that both

welfare of all

the

countries.

"The international and peaceful living of nations will only be
possible if the different countries work and progress together. If
we are to expect any effective action from them, the political organ¬
izations of art international character ' should inevitably rest in the
economic cooperation of all.
"The International Monetary Fund, the International Bank of
Reconstruction .and? Development, as; well as other .international
bodies created by the United Nations — UNRRA', Agriculture and
Food Administration* etc.—are complementary! in their work' and

represent a new way. of facing international problems.
"These organizations have been established on the basis that the
security of the world, in all its different aspects,, will be reached

through international cooperation, both in the political and economic
fietdau..;

figure

of Fund and Bank

Senor Hugo Garcia, of Uruguay made the following statement:
"The establishment of the enduring peace we all eagerly desire,

constant
raw

completely favorable."

Boards of Governors of the Fund and Bank?

of occupation by about 18% of the

years

"At the close of the War, the food situation was quite bad. There
lack of

was

to be learned from

lessons

some

•

profitable from the standpoint of

Statement of Uruguayan Governor

improvement has been particularly noteworthy during the last few
Our economy suffered, of course, severely during the occu¬
pation.
According to our calculations the national wealth in real
declined

to all countries in general."

Savannah meeting. been

meeting with representatives of other countries and the exchange
of views with them?
1

-?>f'

fortnight ago, and when I left,'
had improved very much. The

months.

value

the Brettort

set up will prove effective and helpful for all coun¬

now

recover

Government authorities—declined

Thornton & Co. Offers

Answer:

Has the

nationalistic regulations.

Without stable exchange rates, multilateral practices in international
economic relations do not appear to be feasible. We hope that the

&' Co.;

Lee Higgihson; Corporation;
Merrill Lynch, Pierce, Fenner* <&:

institutions

"The two

tional

their

faith

absolute

we>are'

putting- into motion are

interna¬

and today more than ever we must have a;
positive results of their future action. % They

purposes,

the

will, nevertheless,: need and demand in the years to come the same;;
and constant cooperation among nations that has been up to

Thornton & Co. on March 18
offered a new issue-of 125,000

regulations put into effect in September 1945, the circulation declined
to slightly under 1 billion kroner.
It has now risen to about 1,450

frank

million

now,

shares of

import

common

of Anpleton
;

Proceeds

capital

from

will

stock

(par $1)

Manufacturing Co. at

nrice of $2,375

issue

and

share.

the

sale

added

used

for

increasing

kroner,—a natural consequence
of foodstuffs and raw materials

the abnormally heavy
effected, at first, through
Government agencies and latterly through private channels and
prin¬
cipals, of course attributable to the general rise of activities.

pessimistic

rolling

again.

the

pace

have not suffered

from

strikes

installation

at the time of liberation

conveyor

assembly

line

system.

The company is
engaged

manufacture and sale of farm

chinery, primarily automatic
buskers and shredders.

pany's
are

manufacturing

conducted at

The

ma¬

corn
com¬

activities

Batavia, 111. The

company is successor to a business

oHgirally

founded

Appleton,

Wis., in 1872.

the

were

start

other labor disputes. Basing
year 1938, our industrial production
about 60%.
It declined to about 45%
or

any

was

period following, but by January this year it
84%, i.e., only 16% below the 1938 average. The production

export industries

imported

"Shipping,
We had

aoout

was

about

37%

the

time

liberation

and

in January 1946.; We expect the export industries

figures to improve
the

some

production would

figure of 100 for the

recovered to 55%

the

immediate

reached

in the

which

slowly at first, but during the last few
activity increased greatly and fortunately enough we

myself

on a

with

It did turn

months of 1945

machinery and tooling, and the
of

"During the first months after the liberation,

this

working

production, purchase of additional
v

'_*■ i;•'; \

we shall have to work hard to regain
high standard of living as is evidenced by the fact that
output per man hour in our industries on a percentage basis has
increased very considerably during the last 3 months. \
.";*•/
"As already intimated, we have no labor troubles and hardly
any unemployment.
With continued peace, we shall strive to help

which

was a

iCp.;

come. ;

prewar

Are there

training, his specialty being Statistics. In 1923
Norway at the Geneva Conference, and in 1933
at the London Economic Conference. In talking with the "Chronicle's"
correspondent Mr. Jahn touched on Norway's monetary and financial
interests and the economic situation, as follows:
"The Norwegian Government is greatly interested in the mone¬

Cof"in

years

"We all fully tealize that

our

economist by

curities Corporation; Smith, Bar¬
ney & Co.; Clark, Dodge & Co.;

import of capital, i.e., raw;

20 million dollars and an export figure of about 13 million
dollars, and this difference is probably offset by net earnings of ship**
ping, or nearly so.
t

Mr. Jahn represented

and

1939 figure.

Weld

need

about

committees of the League of Nations, including the ILO. For 25 years
Mr. Jahn headed Norway's Central Statistical Office. He is a lawyer

Co.: Lehman Brothers; Mellon Se-*

Beane:

equipment in the

"Our trade balance, since May 1945 has been heavily negatived
However; as a result of our intensive efforts to export, it has now
greatly improved.
For January 1946 we showed an import figure of

of Finance in Norway's present government.
He is an old hand at
international conferences, having been a member of various experts

tries to

Associated with Morgan Stanley
& 'Co. in the .offering are:.
Blyth

Drexet

industries

our

industrial

Are the interests of Latin America generally served by
Woods institutions?

Norway's Situation Explained

two

Total

years.

and

and manufactured gas

gas

services

materials

provide

in the world.

capital
' -,
contr.bution of $4,000,000 from the
"This same' corporation* has completed the preliminary studies
parent company, Niagara Hudson for the
erection of a steel plant whose economic possibilities have
Power Corp., will be applied to
been accepted by the American experts, Brassert and Morfit, who
the redemption, on or about April
have informed that that project has the most sound basis of all
25, 1945, of the presently outstand¬
similar projects in Latin America.
ing 251,584 shares of the Com¬
"Another program of economic development that we have in
pany's preferred stock, 5% series,
Peru and in which we expect to obtain -help from the International
at the redemption price of $105 a
Bank is irrigation to increase the output of agricultural products,
share pitis accrued dividends.
mainly foodstuffs, badly needed in Peru as well as in all America,
Organized in 1937, Central New
York Power Corporation renders
"Many are the projects of economic development that we have
electric and gas service to the in Peru and in all Latin America, and a great part of them can be
public in the central and northern done by our own effort, but most of them require the help of foreign
portions of New York State. The technical advice and the import of machinery and other capital goods,
Company intends
to Substitute which can be paid for only through; the loans that the World Bank
straight natural gas service for its may provide."
1
from

and

company

Thursday, March 21, 1945

more rapidly during the next few months
material is being processed.
-

even

raw

know, plays

;

you

liberation, I should estimate the fleet

now

hope, patrimony of our friendly >

of these

institutions will

destructive

fight in international exchanges, and will be used to put at the disposal
of the member countries substantial reserves in gold and currency
accumulated by
used to

the joint;, contributions of all—reserves which wilLf

and

correct maladjustments in the balance of payments

long-range "development—the Government of Uruguay,
international"policy of cooperation with all nations
of the world, has* adhered to"jthe Monetary Fund and to the Bank of *
Reconstruction and Development.] There is no doubt that the eco-;:,
nomic expansion of the world in a regime of peace is a task both
arduous and difficult, a task in which very highly capable men haver
already failed; but in spite of that, we feel that there is some ;
finance their

faithful

its

certainty that it can be done."

carrying on transportation services jointly with
our
allies. Replacements during the war were
practically nil;-but
with ships completed principally in Swedish
yards about the time I

meetings of this Conference.

reasons, and because we believe that these?';
t.^nd to abolish the monetary excesses and the
action Of unilateral decisions as a factor of the economic

"Because

•

two

prominent role for Norway.
5 million gross toiis before the war and lost
roughly
as

half of the fleet in

of the

and will continue to be,

relations throughout the

New Zealand and the Fund and
-

^ With

Mr.

Edward

C. Fussell,

Bank

Deputy Governor of the

Reserve-

Zealand and one of that country's observers at Sav-v:
anrxah, the "Chronicle" discussed the reason for the fact that New
to comprise about] fZealand has not considered the question of ratifying the Bretton
Bank; of New

U'-l

i;/'
•i-'

»■:

.t.,-

'- 'v''

[Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4474

.Woods Agreements yet. This, Mr. Fussell explained, is due to. the
fact that so many of-the major ratifications were effected only late
in December, 1945, and since the New Zealand Government had
promised not to enter the Fund and Bank prior to full discussion
in the New Zealand Parliament, there was no opportunity to take
the necesary action
Parliament will not

The New Zealand
again be in session until June, at which time
the Bretton Woods program will be discussed.
The six months' ex¬
tension of the time during which countries with observers at Sav¬
annah might join the Fund was regarded by New Zealand's observers
before the Dec. 31 deadline.

quite sufficient./However, the time has now been extended until
the end of 1946, during which New Zealand most likely will become
a member, with all the privileges of an original member.
Mr. Fussell emphasized that as an official of New Zealand's
central bank he could say nothing which might suggest what the

New

Zealander

government's decision would be before the matter

However, the fact that New Zealand has sent an observer 10,000

this

occasion

may

interpreted

indication of

positive interest in the new institutions and as warranting the pre¬
diction that NewZealand will later this yearsee its way clear to

becoming

member,

country will be less in¬

' *

which all countries need in order

held by the Fund than to put for¬
ward its inability to effect a pay¬

own

ment in

is * not

method

new

tirely untried:, it

was

the

country subscribes to a certain
proportion of the capital of the
Bank, which for most countries
amounts to
the same figure as
their quota
in the Fund.
Two
forms of long-term loans are con¬

ence

was

agree¬

December, 1939; it has
since by various coun¬
tries in bilateral monetary agree¬
•

the~ first

The Fund makes

attempt

f this method

use

valid

objection

generalized use of this method is
that it might have inflationary ef¬
fects.
,No direct reference to a

y'J-y

',, >

-y

I-

" W

human work,

The Fund and the Bank

For instance,

the

Institutions
(Continued from page 1495)

•

second, which applies also to other coun¬
prosperity of tries; this sentence states that the
br countries Fund shall pot obj ect to a pro-?
agreeing to avoid not only com¬ posed change in the par value of a
petitive devaluations of their cur¬ currency because of the domestic
rencies, but also exchange restric¬ social or political policies of the
proposing the
tions on their current interna¬ member country
The only paragraph in
tional transactions and bilateralist change.
the written statement made by
currency practices of a discrim¬

International

concern!

that the peace and
all will be served

inatory nature; third, that means the Soviet Union delegation which
jnust be found to increase the in¬

refers

ternational liquidity of all

difference

tries, to give them assurance that
temporary deficits in their? bal¬
ances
of payments can;' be met
Without resorting either to defla¬
tionary measures which reduce
real income and employment at

home,

to internationally anti¬

the

of its

balances

currency

the Union of Soviet Socialist Re¬

publics of banking operations con¬
cerned; with .international'trans-

actions,

rule,- in/the < Central

as- a-

the
Union of Soviet Socialist Repub¬

Bank

lics

—

the

State

which

Bank

performing

the

social measures, such as excessive
tariffs and other import restric¬

functions

tions.

trade, the Fund in calculating- the
Australian

made

foreign

financing

foreign exchange holdings of
the- Union of Soviet Socialist Re¬
net

Objections

only
delegation
which
written reserve regarding

The

—

these points of principle was the
Australian delegation, which is¬
sued the following statement: "In

opinion / of the Australian
delegation the' purposes of the
Fund, which provide criteria for
its management, place < too little
emphasis on the promotion and
maintenance of high levels of em¬
ployment, and too much emphasis
en the promotion of exchange sta¬
bility and on shortening the dura¬
tion and.lessening the degree of
disequilibrium
in
international
balances of payments.'! The New
Zealand
delegation
shared
the
the

Viewpoint of the Australian dele-?
gation. The governments of both
countries are among the nine gov¬
who, for various rea¬
failed to ratify the Bretton
Woods
Agreements
before
the
deadline of Dec. 31, 1945.
This
deadline has been extended an¬
ernments

sons,

publics, shall take into account
the necessity for the State Bank
to
maintain
working
exchange

ference,

'IP This^hey? 4epai:tU^e,;has been
criticized, .in certain' quarters, but
there'are strong point's in favor of

this'.method, which, seems to af¬
ford .better safeguards, for sta¬
by the Savannah Con-J bilization
purposes, than the usual
1

Soviet

method

loans

granted

■<

Attitude

debtor Country and redeemable in
to note that the currency of a creditor coun¬
The reason is that if the
the Soviet Union, whose delega¬ try.
received from a member
tion had acted at Bretton Woods .Fund
in full cooperation, expressed no country a promise to pay back to
the Fund the currency of another
disagreement with the points of
principle 'underlying the Mone¬ member country, such payment
tary Fund. There is only one sen¬ would depend on the ability of
tence
in
the
Bretton
Woods the debtor country to obtain for¬

P It

interesting

'Agreements which may be
strued
ence

icies

con¬

alluding to the differ¬
.

political pol¬

social

and

the

Soviet

Union,

multilateral. monetary

sys-

There

not

enough "space to

discuss here other clauses open to

criticism, but there is
concerning
the

point
general... setup of

the

International

one

.where

Fund

eign currencies.

holds

the

If the Fund, in¬

member country,

but chasing

power

currency

of/a

it retains ai

pur¬

in that country.

Regarding

The

thus

quest io ii

arises

been improved and simplified by
reducing the paid-up capital to,
say, 10% and limiting the Bank's

loans

will

Bank

amount

figures

small

tively

capital

paid-up

ard,

lack
use

nor international
lack of transfer

ofj goods,

because

transactions.

facilities. for capital

(b> The Bank agreement spec¬

;

"satisfied

been

drafted

and

redrafted

after

the

Fund tl to
'!b

changing

that

the

prevailing

the

conditions

market

borrower

would be unable otherwise to ob¬
tain

the

under. conditions

loan

which in the opinion of the Bank
are reasonable for the borrower."

said in favor
of the general conception under¬
lying this sentence;, but the pre¬
cision of the wording may cause
undue
hardship
in/ borderline
cases,
may. act as
a. deterrent
There is much to be

desirable business arid
might even, by saddling .the Bank
with
frozen
assets,
affect"" its
against

The

credit.

why such

reason

wording appeared necessary may
have been the desire to protect

circum¬

private

interests

Gold

Woods

the

plays

large

Fund

defined in

are

subscriptions to

gold;

the Bank must

and

part in

currencies

the

be partly paid in

gold; each coun¬
try guarantees to ' maintain the
gold value of the balance of its
subscription; countries owning a
sufficient amount of gold must ef¬
fect certain gold payments against
their purchases of currencies from

ment of balances of accounts; but
a$ under the rules of the tra¬
ditional- - gold standard,/ as the
means to regulate national, econ¬

not,

omies./-;^/?//•
*

'/////■/';.//

•/;-/
''

i'0

/:'/..■■///' /.

hope that the Fund and
the/Bank will " contribute,; among
other steps of international co¬
operation, to ■ prevent situations
Let

between the; two
overproduction was
blamed for depressions, while at
the" same time consumers lacked
essential goods; when labor was
unemployed, while so much nec¬
essary work
was
left undone;
when capital was idle, while sev¬
eral / countries could/ obtain no
capital to finance, their develop¬
ment.-Let us hope that after hav¬
ing solved. technical problems of
production and overcome so many
natural obstacles, nations will find
a way. of solving a problem of or¬
ganization which involves none
such

arose

when

wars,

made with borrowed money.
••

f.',\ f>■

-i

■>,•

/'A''/.

observations do not de¬
tract from the great value of the
These

Compared With

Voting Methods

UNO

•

human

For the Fund as

v.'\;
the

that, as a result of its long-term
loans, capital which is now con¬

try.

centrated in certain countries will

Bretton

again be put to

productive

devastated

countries

inadequately developed
will

find

its

reward

the

rate

interest

Woods

institutions have

assembly;--(Board

and
only in
invest¬

/////
Nations, the

United

nors)

and

council

Gover¬

(Executive

areas

not
on

/ Christian Mende, Assistant Sec¬

retary of the Green Point Savings

Bank, of Brooklyn, N. Y., has been
of the

chosen President

well

for the
things
worthwhile' usually progress by Bank, the general conception was
that the subscription of each coun¬
trial and error.
\
x/ i
try — also
the - voting
power,
Guiding Principles' of the Bank
closely linked to the subscription
—should be computed according
As
regards the
International
Bank, the general conception is to the importance of that coun¬
institution. o t All

at¬

banking and investment
against the competition
of,; loans made by -the Interna¬ but human obstacles.
{
tional Bank with its paid-up capi¬
tal* This might appeair no longer
Mende President of
/
to - adapt, necessary if the Bank limited its
limits, the rules of operations to guarantees and loans Brooklyn Bankers Club

within certain

stances.

(a) Out of the paid-up capital
of the Bank, amounting to"20% of
the subscribed capital, only %%
shall be payable in gold and. the
remaining 18 % in the currency of the Fund.
the member.
It. is probable that,
The. general conception of the
with a few exceptions, such as, the
function of gold; in the - Bretton
United; States, the currencies thus Woods
Agreements -is that the
received wili, for quite a while,
yellow metal should continue in v
be useless to the Bank. They wili
use as a
common' monetary de-r
have neither; iocal use because of
nominator and as means of settle¬
,

countries

relation

probably

certain difficulties, for the

following reasons:

Role

setup:

member

less than one billion dollars—and

raise

/Such

the -i Bretton

gold

their

of. the

compara¬

—

Agreements do not attempt to restore the traditional gold stand¬

guar¬

anteed by the Bank.
In fact, as
matters now stand, loans made

with ' the

country,

each

its external trade, its na¬

The

opinion.

a personal
The document has been
prepared
by. .experts
of
great
talent, of exceptional technical or
legal ability; each paragraph has

importance of

| * While

activities to loans made with bor¬

and

determination of

any

mined, thanks to the able diplo¬
macy of the American delegation,
by general agreement. ... v-?;

International Bank could not have

funds

po¬
mat¬

tempt had to.be given up and the
proportions were finally deter¬

whether the general setup of the

rowed

a
a

again

tional income, etc.

think I should mention

use

stead,

the

ifies, among the conditions of a
loan, that the Bdnk should be

considerable thought and discus¬
balance abroad."
sion. However, when reading over
carefully the whole text, I cannot
Form of Credit
help feeling that the general set¬
In order, to give effect to the
up would be of greater practical
accepted points of principle, each value if the
drafters "had not at¬
member country subscribes to the
tempted to prescribe in advance,
Fund an amount called "quota"
with extreme precision, what ac¬
which entitles each country to
tion should be taken under each
proportionate credits from the foreseeablecircumstance: '/ It so
Fund. > These credits take a form
happens, when we look back' at
which is technically new: instead
the, past,
that fate has devious
of establishing between - the Fund
ways of acting in some unpredic¬
and the member countries credi¬
table fashion. It might have been
tor-debtor relations, they enable
wiser to draw a document of a
each member;country to buy from
somewhat different nature, along
the
Fund, under various safe¬ broader
lines,; and to rely more
guards^ -thq-pprreqcieifeof /Other on the
ability of the future Gov¬
countries against its own currency.
ernors
and
Directors

other year

tern.

Observations

But

demonstrated during
the Savannah meeting by Para¬
guay's request for a greatly in¬
creased quota. At Bretton Woods,
it was first attempted to define
certain standards
for measuring

the Bank

com-

held by another member: country.
policies' is the following: This does; not appear to be quite
"Because of the centralization in
satisfactory from ; the " standpoint

meets

standards

nature is very difficult, as

was

(world,

Critical

ditions,

than

conference

economic

of fact,

such

pelling each member v country to
buy directly, under certain con¬

eco¬

ter

Francisco

San

True,

political

such

essential requirement,.'For

it has weak points.
while the Fund has

nomic

coun¬

thus appears more

litical conference.

by far

the

conception

by economic standards

country
an

them

may

it may seem
define the importance of

easier to
in

the

which

Woods

the

than

conception.
a

pos¬

Directors.

Bretton

realistic

at present, does' not
capital, it lacks. security; it
more
important to
provide security than to provide
capital,.
'

any

foreign balances"

because

some.

made
powers

Governors

of voting power

therefore

right to sell, under, various
safeguards, member currencies to
a
member
country, it has not
ordinarily the right to buy foreign
currencies
held
by a member
country. This is not the place to
explain the reasons of what might
appear at first sight a strange
anomaly for an international body
whose purpose is, to restore or¬
derly monetary relations, but as a
consequence it was necessary to
devise a clause called '"converti¬
bility of!

The

lack

the

New

L i k

but

larger,
more

standpoint;

the con¬
accepted at

has

all

grant

delegate

function

latter

The

principle

Executive

Board

the most useful, not only because
the amounts involved are much

proper protection could no
assumed to be the equivalent of the gold standard is looked upon
doubt be devised in cooperation
^kance in that country. This is somewhat surprising, in view; of with the monetary authorities of
the fact that gold mining is an important source of. foreign income member countries*
~ v
to the Australians.
Coming by way of London, Australians chief
Critical Observations Regarding
observer at Savannah travelled no less than 16,000 miles to attend
the Fund
the Savannah sessions.
Yet it is not to be assumed from this fact
that Australian doubts about the Fund have been dispelled. Perhaps
Of course, several criticisms of
the matter will be decided on the basis of the report Mr. Leslie the International Monetary Fund
G. Melville takes home with him from the inaugural meetings of could be made, from a purely ob¬

jective

sible

powers.

Woods

Bretton

guarantor*

the Fund and Bank.

great
trary, the

borrowed; funds and those
guaranteed by the Bank.
In this
instance, the Bank acts in fact as

observer
approached
by
the
"Chonicle"
interview. , The * subject of Bretton Woods ap¬
pears to be an extremely delicate one in that Commonwealth.
protection against such inflation¬
Australia, it will be recalled, recorded at Bretton Woods a-number ary effects
Appears inthe text of
of objections to the Fund,
As various Australian officials who have the Bretton Woods Agreements,
Visited the USA have indicated, the gold .standard or anything but
Australian

The

politely refused

the

with

for

against

assembly and to concentrate them
with the Council dominated
by

the Bank: (a) Those
made with the paid-up capital of
the Bank, which is only one-fifth
of the subscribed capital;,,in this
instance, the Bank acts as an aux¬
iliary investment institution with
its own funds,
(b) Those made
surplus

en¬

been used

ments.

San Franc sco Confer¬
compelled to remove
practically all decisions from the

templated, to the extent of the
unimpaired capital, reserves and

ments

real¬

consequence, in order to be

istic,

each

end

this

used in the

financial

their

well-being.
member

it does not hold.;

This

prosperity

develop

maintain ^ and

foreign currency which
In other words,
when a debtor country has prom¬
ised' to pay in some foreign cur¬
rency the creditor m^y: get vhoth?
ing, but when a debtor country
has paid out its own currency, the
creditor, presumably can always
buy "something.
;

world

promotion

mulilateral transactions.

-Australian Refuses Comment

oretical principle of equality of
sovereign nations, has granted all
nations, great or small, equal vot¬
ing rights, in the assembly.
As a

ments, but also, indirectly, in the

clined to break the solemn prom¬
ise not to block its own currency

Franco-British

had been submitted to Parliament for that body's decision.
miles

member

1529

Directors).

The

San

Francisco

♦Conference, by virtue of the the¬

Club of Brooklyn,
late

George

announced

meeting
mittee

P. Kennedy, it was
recently/ following a

the

Bankers'

succeeding the

the

Executive

Club.

Com¬
M.

Everett

Clark, Assistant Vice-President of
the Brooklyn Trust Company, was
chosen

Vice-President,

continue to
the

club.

sistant
the

serve

William

Secretary

Manhattan

continue

and

will

Secretary of

Plant, As¬

of the Bank
Company,

Treasurer,

will

T'HE COMMERCIAt' & FINANCIAL CfiROtilCLE

1530-

Thursday, March 21, 1'946

arid .filing of new prices in production ori a' substantial scale;
'the; Regional Offices:77/7';^ WOtild result in abnormal profits /
)| The ria'ivete' Of the OPA coh- being reaped by those' Who were c
as a' substitute'for straW.
6fick- :pefieh*ce and" With' the income's o .ceptidii -'df' the" modern* business able; to get: into production first. )
(Continued from fir§t page)
identify the taskmasters drid their ihaking had to go" oh; b6thv be¬ thC greaf majority. The practical tdrgariizatidri is revealed bythe OPA therefore proposes to prb- /
officers with the buireaUCrats who; cause it "was ordered' and because Question is—what is the quickest' suggestion, found in the" above Veht these'prbfitis 'from being real^- •
;

Without Straw:

Biicks

f•;

the* people had to live';
Lacking way to secure that increase of and ' iri mariy Other passages in the ized by maintairiirig' price1 ceilings; /
policy which is set; the most* suitable materials^ for supply Which Will7 establish die document,; ^eferredtd, ■ that* each while at the: same time hoping /
fdrth in the overwhelming tide' of Efficient production)
they were 'desired equilibrium' prices? -'//i individual business ^cdncerri cari" 'that* production will expand witbohri IheT Operation of the-*ribrmal' •
conflicting and iricOhsisterif regu¬ dbliged to resort; to a? notoriously
| The' Correct' answer" is that/the: bf-rieetly catalogued ;arid ;pigedrirr
and usual incentives.
: • •
lations, orders, and ruling about ihferior substitute* for" these first- removal of the price controls Vis hdled iri a- particular industry.
•the quickest way.
how bricks are to be made, straw dlass materials.
This is true) Under th'e*late, uriiamerite^NlRA,
Suppose, however,- that there;v

aid of their underlings,

with the

the

enforce

'■

is an excellent parallel to riot only bCcauSe it Would restore
has been happening to us 'the normal incentives to produce)

/> This

thousands

what

straw.

or no

found themselves subject tdtHree*

With Neither Clay" Nor

Bricks

here.'

riorhial

quite some time we have'
subjected to propaganda and,

For
been

aimed at persuading us

pressure

tiiat bricks

this'

terms
production can

modern

straw.

be made without

Can

and
f o r w a r d satisfactorily
without adequate recognition of
its driving incentives.
Some good
that

means'

will

people have preached, and have
voted resolutions, about produc¬
tion for use rather than profit.
This

than

of,

matter

brickmaking without straW. It is
the making of bricks with neither,

clay

Straw. *
bureaucrats,

nor

The

modern taskmasters

IriStead

;

are

forces

and factors

who

the

of the people,

imperial
decree, although there is an un¬
To this writer's knowledge, tte
comfortably c lose resemblance home market has been more seri¬
between the language of the pres¬ ously interfered with than pro¬ OPA has never denied that re¬
duction. There have been rumors moval df controls is the correct
ent-day administrative law—i.e.,
the rulings and regulations which of an active export market in cot¬ answer to the question of getting
ton textiles, in lumber, and other Volume
say that the issuing agency will
production most quickly.
permit this and will not perMit- products. A member of the House Yet OPA clings desperately to its
that—-and the terms of the ancient recently suggested a ban on ex¬ powers in order to keep on trying
with a view to" forcing to get production stepped up in¬
royal edicts. In each case the ef¬ ports,

are

COricerhS

business

relying on the biit also bebause it' Would mean a four;
or; more
industry codes,
which: •return to, the determination of among which there was confusion
relative prices through the
inhere in the enterprise system
oper¬ and inconsistency galore. Ih'eUch
to supply the deSired" goods and ation of free, market forces.
The major' industry classification' used5
manufacture of almost any article, in reporting statistics of Corpora¬
services, we have been using the
even
the smallest and simplest tion
Cheap) shoddy Stubble of inflation.
income, the 1 asset ^classes
1 All ofVthe squirming and fina¬ sort of gadget, involves extensive farige; from less. than : $1,000 to
gling that has been going oh has ramifications of market fdrees, and more than $10,000,000." In.each
Been* directed at preventing the influences. Price or wage rUlihgs classification there are some cor¬
emergence
of
the full corise-4 df one point in this vast nexus porations which report ho net in¬
cjuencgs of the credit; inflation lead'to Situations Which require come.- Under this wide diversity
into the open as a price inflation. adjustment af Other points. These Of conditions it would be virtually
The flood of rules and regula¬ adjustments are made* automati¬ impossible for the ordinary person
tions, together with sharp':; en¬ cally in a free market. If produc¬ to identify an industry-wide price
forcement procedures, has limited tion is to go on under price con¬ problem, yet the OPA announces
Somewhat the upward movement trols, business firms must stand that such cases are to be given
of prices, but it has also effec¬ by and wait for the OPA to do priority in its relief procedure,
Then it turiis out that short-cuts
tively impeded the production— its successive Jobs df price jerryand sale—of quantities of goods building,
as
a
wage
or
price are to be used, and surely they
that the people Want and that in¬ Change at
one • point Vthrows
a will be necessary*
instead of re¬
whole series of other prices out ferring to the accounts, the only
dustry is equipped to make.
of line.
; It is possible that sale in the
dependable source of information

Straw

not activated by an

impede the flow of cap¬ godds into the domestic market.
ital and hog-tie the production in-; The ban if applied, might have
production or diverted
centives/, The modern taskmas¬ stopped
ters, or administrative lawgivers, goods into warehouses rather than

fect is to:

still have one problem
not

trouble

Pharaoh or

the

henchmen

themselves in

agency,

estab¬

once

They find
fix of their own

able'

data,"
a
prospect which
be enough; to make any

Should

competent

manager's blood con¬
If reference to the accounts

geal.

l^unavoidable, it is to be "stream¬
lined," with particular emphasis
tipoh such information and com¬
ments

the rules of the Western

Union Telegraph Company permit
be accepted for tran'smisSidn.

possible, • without

causing undue alarm—or injury—
to the voters.
HenCe the edicts;
which

seriously

restrict pro-;

duction.
The

;

predicament of

our

modern

taskmasters is complex, but it can
be outlined briefly.
It begins) as

nearly; all of our domestic trou¬
bles do, with inflation. BUt there
was
the period, after V-J Day,
when the government
planners
were forecasting a great decline
of employment arid iricoriies.
So

demand for them.

policy, for this is what protecting
them.against inflation really goiripany managers

Just what sup¬

ply does, or is supposed to do) ih

means,

suggests that the com¬

mentator had in mind

footrace

in which supply, by running fas¬

ter, would overtake demand.

administration

whether the

menace

leaders

It is useless to talk about sup¬

These methods

were

ined

the

next step was to
curb the inflation by preventing,.
or
severely limiting, price" ad¬
vances in face of the higher wage
costs.

It follows that if costs are

to be allowed to rise, while

prices

these*

factors is the credit inflation that
has

been produced by our fiscal

policies. During the pre-war de¬
pression and the war financing if
seemed such a stroke of good
business to take full advantage of
the forces and tendencies making
for cheap money that" the other
consequences of this policy "Were
•neglected or forgotten.
Let us go back, however; to the
legend from old Egypt. The peo¬
ple went out and gathered stubble

mands

error

grave

ministration

for

additional

ation

would

not

ferent' from what* it

plies

substantial

greaitly

dif¬

is.' Sup-

now

short,

so most people
what they want) or all
they want, except by dealing with
the black market, an institution
that continues to flourish despite
the policing by OPA and the Bu¬
are

cannot get

Revenue^

,;Wltli:

coritifolsj )thd le/%

gitimate prices would rise. Those
who are now paying black market c
prices might continue buying, but'
those who do not now patronize

black markets Would

continue) fo*
time, to do without just as they
now doing. ' The most effec¬
tive remedy for high prices is
high prices, when they are estab¬
lished in a. free and open market.
a

are

of general

ad¬

Profit
The

;

and

tion
der

the

I call upon

both management

\; and

;

vation.

Production is the basis

common

enemy—the enemy

A. In addition to giving priority
which after the last war turned
to; industry-wide hardship cases,
our military
victory into ecoOPA is developing a number of ;
riottfic defeat.7 I call upon citishort-cuts in procedure, such as: ;
zens of this great Nation to join
1. Analysis arid adjustment df
:7 ih a united'effoft td consolidate
most recently available data
our' military victories- this time

price control policy,
its theory as to how produccan be induced to expand unit, rest on the doctrine that
rising, costs caused by; wage

and

other

•

determine

current

earn¬

position in preference
to a new accounting survey.
Where a new survey, is un-

avoidable, using5

stream¬

by Winning through td

final Vic-

tory ovet inflation/

ings

telegram Where possible.

the complexity; - 0r:
major importance of an ..in-;

•

questions and answers'on the new
policy, mentioned above, the fol¬
lowing occurs':. ,f;
* t
Q. Does the fact that an em¬
ployer has made an* approved
Wage increase assiire him thai he v
A.

require

;

4*.

The problem is to secure a vol¬
of

output great enough to
equilibrium "prices of
consumer goods from their black;
market'levels down to levels more
the

previous5 ex*

relief,

ther"study.

pending
"• ■'
-7 "
■

OPA has

ever.

manufacturers,

always expected
wholesalers,' and

retailers to absorb cost

increases *

to the extent of their

capacity to
without assuming art Un-;

reasonable burden.
cost

Without such

effective price
control would be impossible, since
every price increase would lead*
to a ) succession of; further tiri-:
absorption,

infla- •
tionary cost?price:r-spirar; inr-.irio-7
creases, thereby setting/the
tiom

■

The pay-off in the above state¬

ment

Where
costs

it is

the' last' .sentence.

said

resulting

creases

where
flected

should

must

that

from

the

higher:

wage

absorbed

in-:

some¬

if they are not to be re¬
in
price ; increases.
It'
be

noted

here

that OPA

Has nothing to do with wage ih-'
Creases.
These are handled by

iStic of Federal procedure* every- •;
where.
Under the new policy,*

employers
creases on

who

make wage in¬

their own initiative and;

Iflationary practices of government without approval by one of the
fiirfinancing as well as ari end of the agencies designated to authorize'

Where the size of cbmpariy,
type of producf and relative
unimportance iri 'relafiori to'
the total economy permit automatic pricing by a simple
formula^, provision will: be
made f or

;

Many employers will
price increase .what¬

are

contains

an adequate remedy while the. fisdustry makes more"extended
-cal - policies1- that produce further
study necessary,- a rough-cut
icredit- inflation remain in effect.
v
interim action may be taken
iThere must be an- end of the in//-Ori; a conservative basis to

price increase?

No.

still effect
jcreases approved by the agencies*
recognition
dealing with this matter do not;;
Of the fact that even if production lead to
price increases. This ab/
could he induced, it would riot be sence of coordination is character- >
-

Urges Removal of Price Coritrbls

•

This is ari

afford

can; be

It gives no

tive.

Where

increases

appealf to patriotism. other agencies ,iri our >sprawling;
indication as to how Federal bureaucracy. " OPA's job >
production is ta be induced under has been to see that the wage in-'

lined
sample and
survey
the controls that
form', requesting; answers by
.

cost

largely absorbed by profits; i This *
suggests a belief that profits* are >
an unessential aspect of the enter- %
prise system, which is like saying :
that straw ( is not necessary ' to
brickmaking. •: In the vseries; of

Absorption

OPA

policy is the belief Will secure

case

lief?

that have ordinarily' prevailed in
times.
In fact, they are

our

Complete

Remedy

'normal

consistent with

it
to

levels

doing so in black markets."

accumulated

pay prices above the

by "Mr. Bowles; on March 11,1946: / high'standards of living" for us
Q. In view of the number of f all;
PibduetidA Will do: aWay
cases likely to arise under the net
with necessity for government
1 '
wage price policy, how Will OPA
controls)
1
v - > **
assure speedy action in applying
I call upott the American
its standards governing price re¬
pie to close ranks in the face

liquid savings there are Some"who

shift

very

increases. In the irieantime,
and assuming that the labor demands- could be resisted) the situ¬

I of high ^wages and ;prbfits and

current*' income

ume

Price

would

wage

series of questions and answers on
the new wage-price policy, issued

sufficient* quantity or
supply of shirts available to bring
about an equilibrium between- the
supply of and the demand for

would

large scale;

downward

shortly ensue, unless they were to /
be prevented by further labor de¬

labor "io proceed with prodo * so
]:"• duction.
Production is our sal-

■

important

Production' Not
-

be exam¬

The OPA virtually admits that'

riiost

freeing trie market *
prompt expansion of '/

production on
revisions

it intends to play "by ear" in the
following, which is taken from a

controlled, the only way of* shirts at a price of, say, $2.00. ;
Our situation With respect to
balancing the account is to take
the increase of cost out of profits.
virtually all kinds of consumer
This the price control program goods' is that the supply IS "short, \
of rtori-existent; because: of the
proposes to do.
war. There is a large perit-Up de¬ ]
*
Credit Inflation Produced by
mand for these goods, and among
|
' Fiscal Policy..''.;; ;
all of those who have substantial
The

compa¬

which

that* production, by -itself) is the
complete remedy. The President's
ground that the mission is riot yet statement on February 14, 1946,
■
fulfilled."
•
\ Contained these words;

are

and

for indefinite
extension of the controls on the

about supply catching' up with de¬
mand.
They mean that there

should be

should

critically, for there is* danger

to establish

future was inflation or

deflation,

nies

that their principal result may be

of the short-

for it is strong, each unit will sell
defla¬
for a relatively high price.
For
tion.
Even at the time the* ihe§example, suppose that the stock
sage accoiripanying the budget" for
of men's shirts were so limited
the fiscal year 1947 was written,
that .each:: shirt would sell for
its author appeared to be in some
doubt as to which of these ten¬ $10:00. If sales were made at this
price it would indicate that some
dencies was to be ascendant. The
buyers were ready to pay that
support of the demands for wage
much; Supply and demand would
increases indicates a decision that
be in equilibrium at the $10.00
deflation was the more likely. But
price. In other words, the supply
wage increases logically lead to
of shirts would have caught up
price increases. And here comes
With* the demand for shirts at
the embarrassing rub.
Price in¬
creases look, taste, and feel, like: $10.00. each.
:
But' this is not What the* ama¬
inflation.
So, having embarked
teur
value
and
on a policy of supporting wage in¬
price- theorists
in mind when they talk
creases because of the impending have

run

the CPA

are^td decide just which

mission, and
quite another to accept the sound¬
ness
of the methods employed.

ply and demand without reference
to price. When the quantity of an
much perplexed at first to decide
article is limited and the demand

the

products are
mis degree of unimportance
Tltregf Of Indefinite Extension
of Controls
the total economy.
In any case
If is one' thing to accept the sin¬ reads like ; a lordly gesture
^hose who sit below the: salt;
cerity of belief in a

explained, but some of the

discussion

„

(

order to catch up with demand, is
never

This could hot be true if

result of

price-controlled domestic

making, and they must extricate

themselves,

the

market.

Caesar;

government

riOW on)

were to be a

about* a business, there is to be reau* of Internal
•^analysis and adjustment of avail¬ removal of price

lished, to fight against its extinc¬
tion.
This is the customary and Then there is the roUgh-cut, or
familiar fight to retain jobs, pres¬ rough-hewn : action to be taken
;
in still tougher cases) pending fur¬
tige, power over Others, patron¬
No Supply and Demand Equations
age, arid the possibilities of po¬ ther study. And finally, any com¬
;
Without Price Factors5
;'
litical advancement. In part, also, pany which, because of its size or
i One defense of the price policy* it may be that the OPA feels that type of product is relatively un¬
has beep that the various controls
it has1 a mission, namely to protect important for the total economy
on
prices, priorities) etc., should the people agairist the 1 conse¬ ;may make and file its owii new
not be removed Until the supply
The document in
quences of an ill-advised fiScaJ price schedule.
of goods had caught up with the
.Question does not say whether the
into the

which did

come dther way, In part the mo¬
tive is that which leads every

price iriOreaSes as* a* result Of ?
lifting, the controls,: Just hOw se- - '
rious and prolonged would be the t
damage?
The implication is that;
everybody would be affected from 4
were

interference

with

functioning ) of
mechanism,
Here

enters

the

effective

such

action, are out of order in

the productive i using these increases as the basisfor securing price increases? un¬
)• ;•
,;j:-

a n o

e r

bogey

which has been worked overtime.
,

less

they shall have filed statewith the OPA within 30; j
days of the time of granting the:

merits

' It is that the Temovsd of controls,
self-compdmiori' in advance of' ithe resumption of increases, that they have

no pres->

Volume 163

Number 4474

THE COMMERCIAL & FINANCIAL CHRONICLE

ent intention of using/them-as a
basis
of
subsequent?; price - in¬

;

tion.

;

tribution
tion

*.,Now

lower prices.

'.-.?

■

turns

has
misunderstood.

;?/?/?;/.<

put

that

out

the

All

•

persons

OPA Policy

Marxian

Dogniaf"

//Nevertheless,there vis nothing;

in the law which requires OPA to
.regulate prices on the theory that
vi production can and will continue

regardless

the

profit

retailer, must obtain
in

order

the'Jp:-

the

department

"when

submitted.? It is almost" too

was

the employ of the OPA-'atfthat
time.
The manuscript wasf^sub-

mitted

This? theory

for publication

in the de¬

perfectly with the Marxian
dogma that profits are, first of all,

partment's

swollen

inordinately, and secondentirely
unjustifiable.
The
OPA policy is a perfect statement

cepted.

ly,

was never

of the

how much the automobile? indus¬

ploitation of the

workers

taitive

bricks

by the

can

ods

and

aqj^Uthoriqulftion of

meth¬

techniques toirdetermine

.......

Suction

with the

and

sales;"?

The

an-

nonncement of thi^hoax coincides

news oL the settlement
of the automobile strike in which

and

Higher

of all

heed.

1939,

secured.,
«

?
♦

recent years, both before 'and

curing the wa£.

It is a case of usWashington agencies. It is ln£ stubble instead pf straws; for
the use of "earnings before taxes the funds are ordinarily provided
as a basis of comparison between by
public^ borrowing. Such, at
two periods in which the rates of
jony-rate, hasbeen /the soureeM
corporation tax were very differ-j £U subsidies paid out since 1930.
ent.

For

16xk %

example:

this rate

The

was

technique

be inconsist¬

may

ent with OPA's

policy of regulat¬
1936, and U : was ad f ■
19% in 1939.
During ing profits, for the subsidy in aid
ofr production Or ? cohstructioh -is
peHod* there < was
-atresia}
tax on undistributed profits, but designed torenlarge entrepreneu¬
it applied
without ? raising
only in the event that rial : receipts
? some portion of the earnings, af¬ prices. It is thus supposed to pro¬
ter payment of the,ordinary,tax, vide an incentive to produce or to
}? Was, not- distributed.. Under the build houses. "Since an. import¬
Revenue vAct of 1945. applicable ant ? reason fior the diminishing
;
to income earned, in 1946 and, 1st* margin between costs and
con¬
er
years, the tax rate is 38% for trolled prices is the : Government/
'

•

Suchwishful ?
the

who

vanced' to
fhis'

British

;

all corporations earning in excess
of

$50,000.

approved wage advance, the sub¬
sidy becomes, in the main, a pro¬

Obviously, the

? return
in
? managers

rate of
investors and

which

cedure for financing these wage
interested, increases through further credit

most

are

inflation.

whether computed on net worth,
invested capital, of on any oth-

pur choice as to the methods
of
increasing production,jobs,
measurement,

f cr
•

base selected for

is that shown after taxes.

Were

Trade,

informed

inquirers that the
would not be made avail¬

money

able for the

purchase of such

goods.

sumer

there .-will

con¬

asserted

that

squandering

established

the

United

States will be made available for

the purchase of foodstuffs and fot
raw, materials which can be man¬
ufactured into goods? for - export
and

for

capital .goods

which

can

be.used to increase;the produc¬
tivity of our factories."
This clearly indicates. that the
controls are not going to be elim¬
inated in the near future, either
in the United Kingdom or else¬
where within the sterling bloc.. It
makes, equally clear that England,
Respite the loan, will continue her
.

system of internal controls.

sterling bloc country. Fur¬
we should be entitled

thermore,
most

favorable

ment in

nation

ted

treat¬

eliminate

entirely gov¬
or
state
trading
and,
finally, it would put the burden
of using foreign currencies on
us,

only

can

The

loan

the

not

tion
as

and income is between the combi--—

promise to try and break

mentioned

even

the

one

not

nearly

would

well settled

right to ex¬

have

More than six months have
passed since V-J day. The state¬
pect.

Britain,

it* seems
clear that she could not
discharge
this
obligation with sufficient
shipments - of goods, or services,;
or payments in
gold,
By assuming : the burden our¬

ments of Russian leaders point to
a huge
military program. We are
planning the largest Navy in our
peacetime history. In view of the

deterioration

of international

co¬

operation, the method of taking
foreign currencies in exchange for
our, goods might be extended to
include the purchase of strategic
materials
for
stock-piling
pur¬
poses.
Such materials might well
include jute, quinine, manganese,
wool, chrome, rubber, vegetable

selves—we could probably stipu¬
late that our future tariff,
policy
would
tend • toward
reduction
rather than increase in rates so as
to facilitate the free ihovement of

The local currencies whiclr

the

Finally, the international situa¬

bor¬

goods throughout the world.

commitment

agreement.

repay

Great

up.

are

loaning dollars,

nation.

Furthermore, the restric¬
tions against us, by virtue of the
system
of imperial preferences,

only by shipping
goods, rendering services, or pay¬
ing in gold. In the case of the

that Great

the; hands

borrowing

rower

choice

part of Great Britain to dissipate
the sterling area bloc pool. There

ernment

where 4t belongs. <
If we insist on

defnite

throughout the sterling
bloc, entire freedom of selection.
juyers

would

freedom

enterprise. We stand
firmly on that platform. Under the
present loan agreement, there is

by these countries.
This would
give us, as well as the individual

full

world of free

regard to customs duties

accumulate in sterling bloc coun¬
tries would be used primarily in

pils,

buying foreign products for ship¬

support

Party, According to the So¬
theory* you cannot have
controls internally if you leave
your citizens free to trade and in¬
vest externally without restraint
Therefore, the 100% Socialists in

ment to

the

United

States

but

;

countries, considerable sums
should be used immediately to
house our embassies, ministries,
and

loan

representatives of the wealthiest
nation i on
earth * are; presently

implies.

They want to regi¬
ment -the British and to develop
the sterling area as a closed bloc
This was recently pointed out in
the Atlantic Report of the "Atlantic
Monthly"? for January. Foreign
Minister Bevin was talked out of
this Socialist external and interna;
control

by Lord

said that after

Lord

Keynes,

have

Keynes.

was

conversation with

convinced

Bevin

"Yoti

said:

but

regret
you have." Beyin's subsequent be¬
havior
conveys
the impression
that

How

long

only half-convincec
will he remain even

half-convinced?

and

furnish

capital

her

mechanics for

The

manner

suitable
in

quar-

which

the

and

forth.

'rather than

promises to

mere

pay.

Valuable good will would be cre¬

ated for

in each country.

housed is
not

a disgrace.
This applies
only to the quarters for offi¬

cial

business

residences

? of

but

the

Resume FHA Libera!

official

ambassadors,
ministers, and consuls as well.
our;

Terms for Vets

In a move designed to provide
In addition, American enterpreneurs
might- be ? inclined to go additional living accommodations
abroad to help establish new in¬ for
returning veterans, Federal
dustries,
hydroelectric
schemes, Housing Commissioner Raymond
M, Foley recently announced
a
irrigation, housing, and construc¬
tion projects. /With millions t of resumption of more liberal terms i
pounds lying to our credit in the under, the FHA property improve¬

United

that

and rehabilitation program.
"With millions of returning veter¬

ment

Kingdom, it is conceivable
American syndicate might

seeking

housing accommodar

undertake the construction of the

However, with or without con
trols, Britain needs shoes, cloth
ing, housefurnishings, food, re
frigerators,
washing - machines
textiles, and many other items of
.

consumer

consulates

ters.

copper, tin,

This stock

piling would tend to
foreign
markets
and
would eliminate the probabilities
of large foreign currency accumu¬
lations.
We
would
get tangible
assets
in goods for our
dollars

many

the government are opposed to the
American loan and to all that the

•

Was

spokesman

Board

thinking

other

Labor

many

England

Britain

Here is another of the blind
that are characteristic of

spots

furnishings,
of
is in desperate

Remember, though,

The last resort of those who
seek to control prices is a subsidy,
averaged
In
a
representative The device is an old and familiar
peacetime period, usually 1936- cue. It has bemused extensively

;

we
shall sell to Australia,
Zealand, South Africa, India,
Egypt, Iraq, and so forth.
Sov¬
ereign peoples should be permit¬

New

cialist

its products will not enable

/the industry to earn the same rate
cf return, before income
taxes, on
its present net worth .which it
*

household ?

which ?

?^eiling pirices for

an industry ;afe /vrage
to be allowed whenever the prices creases were

what

and

the burden of repayment rests on

| 4
„ ''4;
»« f ?, and project cost,'price/and profit
The foregoing OPA statement relationships unde^varying as^
indicates that producers are not sumptions as to vpiume of pro4

unreasonable burden is
evidently
'to be a
historical one.

bookkeeping

the

to be required to absorb an unreasonable burden, The test of an

double-column

freedom to exchange our accumuations for the currency of any

has

development of istatfsticaT

made

•

added: "The credits which Britain

initial effort in the

empty

Anglo-American
credit agreement a possibility that
England would use her funds for
the purchases of shoes,- clothing,

these funds for such luxuries and

the

are

the

wasafot ac¬
toldyihat it

how

are

intended

answer

"reflected

;f without straw.
.

into

could afford to ,r&ike wages
without; raising/prices .?£3t?mereiy

groups.
But it is also
? a modern version of the proposi¬

that

"Survey

try

.ex¬

capitalist
tion

monthly

Current Business" but

Marxian thesis of the labor

theory of value, and of the

read

agreement, despite Great Britain's
protestations to the contrary, we
agree to allow London to dictate

retailers whose shelves

for

good to be true to find that he

fits

page 1499)
currency in much the same man¬
as
body of .opinion ner
outlined
above.
These
England, including particularly countries would likewise agree to

A considerable
in

quickly dashed

margins

business.

(Continued from

employ

/from the original processor to the

■

Substitute for Loan to Britain

those expressed. in this document.;
Its author was .not even inrihe

that those engaged in production,

4remain

coji-

partment's views on prices, prof¬
its, and wages in any industry and

■a

;

are

.nection whatever between
■:

de¬

been ;?completely

notice that there is

Department of Com¬

toward^the partment?

advance

posi¬

regarding its -conclusion^.
Naturally it had great influence.

j main objective of more goocls at
•

the

cau¬

to the

merce

jerry-built short-cuts,^and

ear,

failure

Wide disH

given with

was

1531

au-1;

■

reservation

tion

small wonder that there is playing

of indubitable

aura

thority surrounded.it.

crease.

Only Alice in Wonderland
could have thought up this one.
For instance, how •
long must- a
"present"-, intention last?
It
is

with

goods.

Le
The

them.

doing should/be

ans

English

tions, it is my belief," Mr. Foley
said, "that material additions can
be made at once to the housing
inventory by properly planned

last.

Channel

tunnel

long

American construction

com¬

panies might wish to help in the
reconstruction
areas in

bombed

out

England and elsewhere..

conversion or rehabilitation of ex-

structures." As one means
problem,/he said
' fHA would^ resume^insuring Title
I
up to $5,000 for a term of

By accepting local currency in?
sterling bloc countries, we are not I

loaninl money; therefore, these
i rfation of inflation and regimentafairly simple. The British import
countries are not assuming a debt
,4 ion, on one hand, and a return to ers could buy directly from Amer
in dollars which they might find "P to Severn years under the fol^-investors would be entirely happy sound finance and a free market lean
iprbdtmej^? and -exporters as it
i Over:-&
exceedingly difficult to repay, i l°wmg conditionsreport of large earnings, economy on the other. The first in the
prewar period. The Amer¬ India and
Egypt now have large J ? "1., The property must be in? a
even if the corporation tax
were, alteriiative tends to -perpetuate ican exporter would quote in dol¬
this not so, then It Should follow
that both the managers and the

•

to confiscate 90%
test

of them.

reasonableness

itself?sihde

The

about,

burden

applied is

dan

condition

cifever

bring

which

controls can be relaxed.

? which the OPA says it has always
•

The

the
sec-

which fails to meet ond will bring a quick end to our
the first and most
elementary re-!^difficulties.; If we can make more

one

quirement for getting
steady production.

beUer bricks by using straw,

large and hnd

why not

use straw

instead of stub-

lars and receive-dollars when no

gotiating his drafts

the British

sterling balances in London and
would, therefore, be reluctant to
take on another debt in

buyer.In England, the buyer would

foreign

'war housing area' which has been
designated by the President. ?///?
"2.
The
improvements
must

currency but would certainly 'wel- { provide additional living accomequivalent cohie the chance of buying our modations.
in pounds, which would be
placed: goods and paying in their own
"3. Occupancy priority must be
to the credit of the United States
local currencies.
given to veterans-of World War
Treasury, The Treasury would re^
In making the loan to Britain,
%
/:>
imburse an American bank in dol¬
we ptete
lars for the benefit of the Ameri¬
a^esire to trans tion 1 Local FHA field offices, he said,
very diflicutt Postwar
iaft v,avise lending institutions recan exporter.
Credits of all types
period but present help in dollars
deU ible areas which aTe
could be
opened with suitable is most certainly
going to pile up
fhose snarned by the President
modifications, as in the past? The
grief in the future when Britain Hlirin{? thp war "r r
i
vpounds^-whichy'we accumulate^^ in
may be unable to pay. We are! du,rl1S »he wafIt is pointed out that the usual
Britain ? would
be? convertible,
putting all our eggs in one basket
Title I maximum terms are loans
upon?? request,: into ?• any
other instead of innumerable baskets.
sterling bloc area currency. This
up to $2,500 for periods to three
By granting a loan to Britain
would entail double-column book¬
for the entire British Empire, we years, repayable monthly. During
the war these terms were liberal¬
keeping in the United Kingdom— invite the
Russians, the Dutch, the
one
column to show dollars and
ized
to
the $5,000, seven year
French, and the Belgians to do
another to show pounds
sterling. likewise, in spite of the fact that maximum provided additional ac¬
In the agreement to be
commodations for immigrant war
mads, the

his

pay

bank

the

The

Commerce

Ijepartment's

'Statistical

Hoax

?-?????:

The
OPA doctrine regarding
capacity of profits to absorb wage

*The New York "Times," March

15,1946.
i

nublic

document made

the

under

auspices of the

Department of Commerce. While
it dealt only with the automobile

industry, its line of argument and
conclusions

influential

and

strong¬
groups

with

fact-finding boards in other

industries
in

doubt

labor

were no

the

seerred

well

automobile

then

with

those

industry. *'It
answer1 to

for it emanated from' the
Government-department which us
responsible
for - compiling
all
orayer,

manner

of business data

including

the

to Close Sah

DuringSunnnerMoflihs
Gov-.

Dewey? of,- New > York
bill, passed
by the. Legislature permitting all
banking institutions in the State

signed

on March 14 a

close Saturdays during June,
July, V August ?• and /i September.
Sponsored by Senator Frederic

the

base

any

der the

program

full

which

pre¬

undertake

in¬

value of the

pound in relation to
This would not mean re-

Labor

Day.

The

changes

Bill

the

said

banking institution to, include all
persons

organizations engaged

-are

incorporated,.?

•?

not

they

lit

Commissioner

ence

Associated

Albany March
definition of a

participating

stip¬
local

slight fluctuations.

1. and

«>e Titl® X

ing

aopraisal

June

show

dia and
Egypt, we would deal
With them directly after conclud¬

viously permitted Saturday clos¬
between

nFotSsiVfnly iXcWnTlTSIva1 Ing institut/ons

spirit of independence, and j
Program,
part of our for-: *oleY saia*
•'
eign policy to.refrain from active
"You are urged to survey the
participation in quelling such riots' conditions
and
possibilities
in
and, at the same time, negotiate! your community and consult with
loans with the so-called mother j property owners, dealers, contraccountries, which funds would be tors and
interested commercial
in
part,
undoubtedly,
used
in and civic organizations to the end
these areas to smother independ- that Title I loans may be fully

ings

called for un-(in banking, whether

employment legisla-

would

the"pound total in exact
to any devaluation in the

dollars.

law

which ?

crease

eral construction

Press advices from

British

ratio

largely responsible in developing
the-information

R.Xoudert Jr., New York Repub¬
lican, the Bill amends the gen¬

estimates of national income,
and which would
no
doubt be

President and the Congress would

•

]

increasesreceived? strong.support? N.LBaitks
last autumn in

aid

the

other

event

sovereign

only

govern¬

ments, including the British Do¬
ions and countries such as In¬

rr?

them.

ulate

agreement with each

one

Each agrement would

that

will

should not be

movements.

utilized to create additional hous¬

the present time

the conditions of the

and under

ing accommodations for returning
pending loan' veterans.'

THE COMMERCIAL & FINANCIAL: CHRONICLE

1532

eight

Say Now?

What Does Dow Theory
(Continued from page 1494)
as

than

The

doubtful

somewhat

coming

stocks that he may

erally to set about

will, everyone
uses Dow theory in the sense that
everyone banks on persistence of
trend, if only to the extent of as¬
suming that the boss will not be

strengthening

his

financial position."

own

is a method of determining
what the trend of the market has
been.
It depends for its practical
value on the fact that a trend
once
determined usually, though
not always, persists long enough
to be worth following.
Because

morning because he has
been ten minutes late every day

morrow

ory

the last two weeks. ;; A wise
merchant never buys in a falling
for

market.

profitable to operate with
the trend than against it.

generals, tend to
to win the last war, they
most interested
in the

become

Because he finds

Why?

investors,
prepare

to¬

in until ten minutes after nine

the¬

Strictly speaking, the Dow

Dangers in Analyzing

Economic.

Factors

following a prolonged
movement in one direction (such

Dow theory

the Dow theory

that

fact

The

still is used, Consciously or other¬
four-year-old bull
wise,* by: so many stock market
market) when in the bright light
students after half a century of
;; of hindsight they can see how ad¬
efforts to develop better methods
vantageous it would have been to
reflects not only the fundamental
recognize the trend early and stay
soundness of the idea of persis¬
with it throughout the rise.
tence of: trend, but also the com¬
plex and highly competitive na¬
The Dow Method

Dean
Donham of the Harvard Business
School once observed that the hu¬
man
brain could cope with three
variables
at
once,, while most
business decisions involved scores
of variables. In the stock market,

is Mr. Dow's own

The following

description of his

method:

watching the tide
coming' in. and : who wishes to
know the spot which marks the
high tide, sets a stick in the sand
at the points reached by the in"A

person

coming

until

waves

reaches;

the stick
.where the
to it, and

not come up

waves

position

finally recede enough to show that
the tide has turned.
This method
holds good in watching and deter¬
mining the flood tide of the stock

market."*

The

are

averages

the

mark the height of

pegs which
the waves.

while

Unfortunately,

the

ex¬

planation is easy, the application
is not. Attempts to show the limi¬
tations of a mechanical applica¬
tion* of
the Dow theory prove
nothing
except
that i the
Dow
theory is not a mechanical sys¬
tem for beating the stock

market.

tool used in conjunction with

all other available data,

it is some¬
That is all, >:.*
f

times helpful.

is not is

What the Dow theory

just

important

is not

what it is.

religion. It makes not the

difference

slightest

Dow

theorist whether anyone else "be¬

lieves"
Dow
not

not—unless

has

the

letter

facts

myriad

assets,

earnings, sales, etc., are at most
only half the problem. The other
extent to which those

the

half is

facts have been

discounted, mar-

ketwise.
i

Suppose^ earnings are going to
higher in the coming year. The
market does not capitalize a hen
day just because she
has been observed to lay one egg
in the hour between 11 and 12.
It
at 24 eggs a

decide that earnings in the
coming year should not be capi¬
talized at prewar ratios.

may

ship. If stock yields are 6% when
bond yields are 3%, should stock
yields drop to 2 % when bond
yields go down to 1%, or does the
or

less

rental-of-

to such

answers

questions

how investors view the

future.; Tod much of our so-called
statistical work on the stock mar¬

Hamilton, who

its leading exponent

was

than
were

for more

quarter of a century, both
editors of the "Wall Street

To contend that the Dow

Journal."

theory

the

obviates

financial

news

need

for

is to contend that

Dow and Hamilton spent the best

of their lives trying to ruin
their own business. Dow specific¬
ally said:
/
<■
years

"The

one

market

to forecast the
comprehend
the
events both as ap¬

way
to

tendency Of
plied to general business and as
they bear
upon
any
stock
in
which dealings are contemplated."
Again he declared that, "We be¬
lieve

that the stock market, as a
whole, should be regarded always
as an effect of general conditions,
and that the way to study the
stock market, as a whole, is to
'Study
general
business
condi¬
tions." ;;
•:
ri
-v •••;>

Actually, the Dow theory is not
theory at all, but applied com¬
sense.

mon

vises
a

get off the railroad track

her

The

mother who

daughter not to

worthless

ad¬

marry

to reform him is

man

using Dow theory. In effect she is

saying
has

that

been

the

bad up

proposes, the chances are that it
will continue bad after the wed¬

ding. The employer who asks the
prospective employee
what he
earned in his last job is using
Dow theory. So is the bonding
company which wagers that the
man

who

never

ket

amounts

ratio
approxima¬
tion, and carrying it out to the
of

has

been

trouble is less likely to go wrong

train

sees

arid

books

the

line

has

testimony

local

half-wit

been

abandoned.

that

the

outstanding commentary on
the practical value of the Dow
theory is the following from the

now?

third

decimal.

Attempts to guess

what corporations will earn, arid
what dividends they will pay in
the coming year, are helpful in

surveying market prospects be¬
cause they give us another angle
from which to view the problem.
They are no
attempts > to

conclusive than
guess
directly the

level at which the Dow-Jones in
dustrial average

>'-< '

*v$$

The Abortive Record of
"■

Forecasters

•

found

was

tend

back

the

different

record

successful

most

three

ex-?

published

forecasting agency

for the period from

While

possible, to

1903

the

with

record

;

-•

"It

pends

Both

1928 to 1943.

"Times"

therefore

justifiable

treat the combined

seems

end

one

beam,

and

great

4, 1946, when it was still al¬
most eight points short of equal¬
ing its 1936 peak. On many occa¬

the

gain of 3.3%
result secured by
a

vestment

was

guess

the

the
continuous in¬

a year over
a

the

stocks

'Common

versals.
New

of, the

principles involved.

theory

that

was

The

forecasters

these

there

was

prevalence

the
and
therefore, desirable

sequences over reversals in
movements of stock prices

that

was,
swim
with

evolved

tide.

They

various devices for rec¬

when

ognizing

turned,

the

had

tide

attempt being made to
anticipate such an event,. , .
no

"What
there

statistical
to

evidence

why such

appar¬

tage,
nores

moreover,

the

that it

obvious.

view

never

Perhaps

ig¬
the

continued prominence of the Dow

theory after so many years of de¬
bunking by its critics and depre¬

look

"Times"

York

re->

the

in joining the rails
by breaking through to new high
ground, above its 1936 peak. On
age succeeds

the

qthefhand,the "Herald Tri¬
industrial

railroad

and

both topped their
1937 highs
before the February
decline began. At the 1936-1937
top, the New York "Times" aver¬
ages warned of impending trouble
months before other widely used
averages. But at the 1942 lows the
averages

"Herald r Tribune"

averages

first signal that the

gave

bottom

bull market because

established

tion

and

ography

2. The" decline

Layoff—selected

investigation of

the evidence
of inertia in

the

eleiment
prices as follows:

stock

penny-tossing series there
probability of one-half that

a re¬

versal

stock

will

occur.

market

rises

decline

for

the

hour, day,
week, month, or year, is there a
probability of one-half that it will
one

the

succeeding

able unit of time?

including three

Dynamic Equipment Policy for;
America, A.—an excerpt—Machin-i
and Allied Products Institute^

221 North La Salle

Street, Chicago4, 111.—paper—copies will be sent;
to members of Congress, editors
and commentators, educators and
other

opinion-forming

Buchanan With Boettcher
DENVER, COLO:—Thomas Ej
Buchanan, Jr. has become associ¬
ated with Boettcher and

828

Company,
Street,: members
York Stock Exchange;

Seventeenth

of the

the

bull

unit

month

one

appeared

promising, from
viewpoint. In the

was

Prior thereto he

Army.

that

rails. In the former

case

the "cor¬

rection"

might be expected
the
industrials back

carry

to
to

somewhere between 192 and 175.
In

latter

the

case

the

decline

probably will stop in the 182-155

•

1. k'v),

the

from its Feb.
amounted to 12.18

average

has

51.9%

its

-C
in

recovery

the

decline

market ' high of
of 184.05.

bull

207.49 to its Feb. 26 low
The

rally

corresponding

the

of the 100-

equals 3.61 points, or 42.1% of
their decline from their bull mar¬

prices from 1836 to] 1935, a
of 1,200 observations, there
748 sequences and 450 re¬
was

industrial

from

the

far

low

case

stock

had

shares.

rails

monthly series of

is,

the

common-/

estimated

0.625 that, if the
in any given

risen

constructed
by
random
penny
tossing would be 17.3; therefore
the deviation of 149 from the

pected value 599 is

ex¬

excess

Abraham Strauss Visits
Abraham

Strauss,

City, is

partner

Broadway*!

Brothers,

on an

extended^

trip to the South.'

Volume indi¬

the recovery thus far

that expectation.
resumption of the
downtrend, both the

do not encourage
To indicate a

secondary

have

would
Feb.

date

lows

either average

their

Volume indications

make at least

Feb.

averages

below

of 184.05 and 59.86,

lows

those

its

sell

respectively.
to

railroad

and

industrial

retesting

probable.
If
should break below
seem

low

while

the

other

held above its corresponding

"fig-

to the accompaniment of rel¬
atively quiet trading, the infer¬
ence would be that stocks should
ure,

be bought.
To indicate

;
a

bear market both

the industrial and railroad

stock

would have to rally from
whatever] ultimately prove to be
the loWs on the secondary decline
ago.;5 Trading on the New York
still presumably in progress, re¬
Stock Exchange totaled 2,650,000
tracing at least a third of that
shares on Feb. 26, the day the
lows were made,, while the maxi¬ decline, and then sell off again to
new lows.
Such a signal could not
mum
volume developed on any
be given for several months, at
day of the ensuing rally, to date, the earliest.
H
' :
was
only 1,400,000 shares.
On
Some
market
analysts
may
March
13, a day of declining
argue that we shall be in a bear
prices, trading totaled 1,610,000 market if both
pects for higher prices since the
decline began more than a month

forecasting

year

That

tendencies have been
unfavorable to pros¬

3. Volume

;

with

was

Brown Bros. Harriman & Co. and

cations

points

the most

one-hal£

and

68.42, respectively.

the
far has amounted
to nothing more than a long over¬
due "correction']1 of the rise in
those
averages
from their last
summer's lows of 159.95 and 50.76,
respectively. It is even possible
that the reaction is "correcting"
the entire advance from the Nov.,
1943, lows of 128.94 in the indus¬
trial
average
and 31.42 in the

con¬

four

past

he has been in the U. S.

rail average thus

re¬

the

groups. Ad¬

ditional copies available at cost.

market highs of 207.49 in the in¬

the

years,

result of various

siderations
of

prob¬

ery

dustrial averages and 68.42 in

generally

made

once

University, Princeton,

N. J.—paper—10c.

once

the

bibli¬

—

Princeton

by action of

from

;

"SelectedReference,"
Industrial Relations
Section,

assumed to persist

it is reversed

until

trend

Technology,

Glore, Forgan & Co. in Chicago#.

1. Presumably we still : are in a

■:,»

Calif.—paper—50c.

for

averages

their picture of the stock market
will not expect clear sailing un¬
less and until the industrial aver¬

late Herbert E. Jones

market

the

who

rarigeftf^l

probability

great advan¬

important; trend

Those

ently naive procedure should be
successful? The author rind the

that it would continue to decline
for another month. The standard
deviation for such a long series

which
has

a v e r a

aver¬

the New
g e s
has

New York

angle

the tide.

month, it would rise in the suc¬
ceeding month, or, if it had fallen,

from

"Times"

York

railroad

A. Appley —
Section, Cali¬

Seniority and Ability in Promo¬

trial average,

As a supplement to other studies
the Dow theory provides another

market.

and

that shown

Institute

Strauss

versals.

Recognition of the Obvious

fornia

Pasadena 4,

the averages indicating a turn in

were

Industrial Relations

composing the Dow-Jones indus¬

industrial

the forecasts would have resulted

total

had

ecutive—Lawrence

sions in the past, such divergence
between the price movements of

boulder at the other end. Then all

weight of the boulder.

composing Dow-Jones in¬
dustrial
average
would
have
shown a return, including divi¬ rent market situation is about
dends, of 10.9% a year. Following follows:

out-numbered

heavy piece of machinery. Hav¬
ing no scales, he erected a crude
balance, with the machinery at

down

years

the

The geologist,

Functions of the Personnel Ex¬

industrial

For

versals. As

the story goes, had to weigh a

of 25
turned

Turning to the Dow-Jones av¬
erages on which most Dow theory
interpretations are based, the cur¬

sequences

stocks

had been reached.

question.

investment

merely involves

home-made scale.

Bookshelf

industrial

averages

the

years

continuous

to and

us in new, unre¬
did the geologist's

averages are used.

forty

tion of the problem. Too often it
lated guesses, as

Maw's

record as a continuous one for the

"It was found that for every
series with intervals between ob¬
servations of from 20 minutes up

now.

^Business

if*4»

Feb.

stock

predecessors.

:i'#

Dow-Jones

average

common

bune"

avowed disciples of their

ers were

have
their 1937
peaks
by
margins. The
New
York

good

for

ilar, and the succeeding forecast¬

penny-tossing
'4.:*

surpassed

responsible

the ; forecasts • throughout
those
40 years, the general principles
followed by them all were sim¬

what

railroad stock

for

periods

v,.

•

the

and

individuals were

will be selling a
The test of the
usefulness of any new approach
to
determining stock values is
whether, as in surveying, it con¬
tributes to our mental triangulafrom

year

warned

J'*.V%<J*.'l

To some extent the answer de¬

by the Cowles Commission
Research in Economics:
/,
-

] What does the Dow theory say

ages

for

infinitesimal."

The Immediate Inferences
yf

brochure entitled, "Stock Market
Forecasting," published in 1944

taking the

estimate to

man's

trend
to the time he

when,

coming, and the
Dow theory focuses his attention
on the fact that a train is coming,
notwithstanding time-tables, guide

factor drops?

money

The

the

while

constant

remain

factor

risk

Dow, who

and William Peter

does not have to be brilliant

man

complex and
to make any
impossible.
A

decision

v\>* >

"In

depend

contradictory

the standard devia¬
probability of obtaining

result

series

when

times

tion. The

such

simple

understood

view of this moderj|tely but
Suppose stock yields next year
do promise to be twice present consistently successful result over
such a long period it may be of
bond
yields. Stock yields pre¬
interest to consider the forecast¬
sumably include something for
income, and something to com¬ ing method used and some statis¬
tical evidence as to the soundness
pensate for the risks of partner¬

formation and statistical analysis.

originated, the method,

stocks

to sell. It is
substitute for financial in¬

theory

stock market.

of the

ture

"theory"

rational

the current

the

other evidence is
so

Call it what you

likely * to sell
have and gen¬

much

Theory Based on the

Dow

by its followers is be¬

even

cause

Persistence of Trend

quality, is not quickened thereby
to trade on the long side of stocks.
He

punishment.

cation

enough

be¬

receivable

bills

and

who already has experi¬

enced crime and

iron dealer finds prices un¬

certain

one

Thursday, March 21, T 946

from

their

Feb.

low

high of 68.42 to their Feb. 26
low of 59.86. Both recoveries are
ket

well within the

rebounds

limits of technical
might be ex¬

which

pected even if much lower prices
ultimately were in prospect.
of Recent Highs or
Lows Will Furnish the Signal

Retesting

indicate

resumption

of the

the
theory, both the industrial

primary uptrend, according to
Dow

would
their Feb.

and railroad stock averages,

have to advance above
J_fi

hicrhc

9.07 49

and

averages

averages now break
their Feb. 26 lows. - The chief rea¬
son for questioning such an inter¬
pretation is that the decline from

the Feb. 4-6 bull market peaks to
the Feb. 26 lows was too short to

"correct"

dated from

advance that at least
last July and

August,
possibly from November of
Dow was quite specific on
that point.
"The element of time
and

1943.

also

enters

into

the

calculation,"

he said. "An advance lasting three
months does not have its total re¬

lapse in
On

one

either

week."

interpretation,

de¬

cline in the market carrying both
averages below their Feb 26 lows;

would be bad news for the bulls..
Because of the probability that the
selling side of the market would
be crowded in such

event, somemight be in
order if both averages broke their

precautionary sales
March

13 lows of 188.86 for the
industrials and 60.87 for the rails
increased volume of trading.

[Volume 163

Number 4474

THE

COMMERCIAL & FINANCIAL CHRONICLE

the

Conditions Affecting Railroad Values
(Continued from page 1497)
mean
pre-war—and

"normal'' I
must

reflect

five years
the

over

impressive
ments

the

last

territorial; improve¬

thanges

that

lot of water has gone
dam. There have been
a

some

and

cases

others;:; some roads
have been tremendously improved
physically, while others are well
below even an average for the
field;- there have been debt re¬
tirements

and

bond- ;<

refundings,

the results of all of which

for wide variations

ago.
.!'»

the

over

ditions existing only

make

few

years

* security

railroad

prices

are

cents

bushel" level of only three

than

and there

years ago,

higher

the

"10

admitted¬

are

angles, it is
important than ever to "be

right" in.

appraisals.
Don't
the industry, but be

outlays

favor.;, :./■

nancial

and the weakened fi¬

condition

of gigantic

puf

rates

"ceiling"

shipping
creased,

all rates,

rates

and

Maritime

running
boats

entirely

the

panies.
is

has

eleven

some

C':';'

Commission

operation has
individual

conducted

in¬

will

through the Canal,
its
expense, - even

though

cannot

or else there
diversion of traffic.

been

time.

likely to be their princi¬

are

been
com¬

It is estimated that there

out-of-pocket loss

voyage.

While, actual

every

Modernization, Et Cetera

;

have

been

talking for

years

because

these

provements. It seems
necessary
to
enlarge

must

in con¬
the boats

expenses

positions

showing the
increased
costs, -v By
(during which time* the

the

window,

together

"flush"

the

business, with
the: exception of the: flush pas¬
senger business, which is gradual¬
ly coming down to normaLTher^
be

may

backs

case

two

carry-

profits taxes, but
for the most part the books will

■

excess

pretty

well

kept

true

lem to be

freight in
ferent

For

endangering
the
ability t to f; weather
adversity.
Striking off an "average" for the
industry | doesn't prove much
only the average or better will
true

measure

If there is any doubt about the

future

ability of the railroad in¬
dustry to make money, then there

j should be greater doubts concern¬
ing its principal competitors—the

$ trucks and boats. You have heard
1

talk

these

about

two

factors

obstacles

ing,
as

weakness

this field have been found in the
southeastern

tral west,

states

You have

arjd the

cen¬

situation in your

one

back

own

yard,
the
Keeshin
Trucking Co., with which you are

probably

familiar than I

times

from

an¬

large New Eng¬
firm's intention to

fects
can

about when

come

charges
comes

company

in to buy the franchise and

the small equity

equipment for
:;

longer meet its payroll
and
a
larger company

The end

remaining in the
small

very

result is

sums.

that the

ac¬

quiring companies buy additional
operating
lossesf to
accentuate
their

possibly

cash

balances

have

and

cash

balances,

how,

are

far

concerned.

the rail¬

This situa¬

tion cannot continue long, but can
only be ameliorated by increased
rates.
It

V /,,• ff

•

■'

estimated

that

over-all

As Dr. Parmelee of the Associa¬
tion of American Railroads stated

of these

8th, "It is difficult to
precise estimate of pros¬

in f expenses

especially in view of the disturbed

greater

industrial

bring
ficiency, «
On
tion

about
/

make

pective

ef¬

railroad
and

estimate

;

for

balance, in the transporta¬
field, the railroads are be¬

traffic

earnings

conditions."

allowance

possible

and

1946,

changes

his
made

was

current

rates, or material costs. Dr.

wage

the

that

they did in the

before
break

increase

of at least 35%

freight rates

business
J*'-

will be necessary

coastwise

vessels

can

Wage

What

the

country than

pre-war

ty* %. I ' *

move

years.

responsible

very

the railroads in the present wage
case.
It is quite natural that he

into the future.

peer

look

might

should be more pessimistic on all
accounts
than we in
trying to

»*V

•

Rate Increases

vs.

while
on ; certain
isolated runs, such as the one to
Alaska,
an
increase
of -100%

together with wage and material

mates for

would he necessary.'

cost

increases, and that becomes
of the problems of estimation,

not

this

feel that I should present them to

•

even,

There is a difference of opinion
to whether coastwise service is

essential

that

transportation.
His¬
there is no doubt but

coastwise
harbor

our

services

cities

and

built; up
the

areas

contiguous to them. \ From the
standpoint of national security, it
would seem that; coastwise ship¬
ping should continue, but there
questions as to the
ability of the industry to do. so
independently under present rates
grave

Intercoastal service is probably
a

change: existing differentials<'-li-Vk -k* til

Because of the dire straits that
railroads'

principal competi,tqr^Jin4 Jhemselyes..m^there. is
doubt

one

for

forward
is; linked

increases

rate

You

year.

,vj

opinion but that

rate increases of a substantial na¬

ture will in time

come

about. InH

will be

sound

transportatibn

creases,

boats and trucks, because

their weakened

condition, will

be damaged to a greater compara¬
tive extent.

In proportion to ca¬

pacity

limitations, cost increases
are
proportionately absorbed. The
comparative unlimited capacities

troactive to Jan.

1, 1946, and our
guess is about half of what they

back

come

after

the

such

and

Dr.

statistics

Parmelee, 1

comparison

with
his
figures. Had he not publicized the
AAR's estimate, you would have
expected something of this sort
me

anyway.

Parmelee

Dr.

would mean such more in the way
of cost increases than the request¬

million

ed^uplifting in straight pay. They

$200

wage

used to call

when that term
some

years

they

will

"featherbedding,"
I

What

may

anybody's
people we

behind

seems

opinion.

have

Many

rates

and,

that

there

division

even

His

the

among

contacted,

feel

happen

guess

the

of
al¬

most immediate restoration of the

temporarily shelved rate increases
of

4.7%

can

legally

invoked.

Because of the fact that this small
restoral of the rate increase would
not

begin, tp

meet

costUCMt have

believe

that

the
come

increases
in

since

acceptance
increase that

necessary.

larger increase may mean
long delay. That's the rub!. Unless
the price policies of the Adminis¬
tration are softened, there is no
question but that the OPA and the

of the

Farmers'

war on any

Agriculture

Unions would

and
wage

rate increases. Within

and industry in general

getting under

way.

•

read into

than I

am.

Accordingly,

our pos¬

sible net after taxes and

assuming
comes

Dr.

increase

out at

charges,

wages,

$642 million against

Paremelee's

conserva¬

tive $330 million.

According to

reorganization, or a rehash of
position of unsatisfied junior

creditors

;

our

stockholders.^

occassions, as a witness
about
to
leave
the
stand,

numerous
was

Reed

asked

specifically

few comments

S.1253 be¬

fore the individual concluded has

testimony.

Prejudiced tesimony
for

given

was

against the bill, according

the

viewpoint expressed, but
particularly for or against
specific railroad reorganizations.
In my opinion, up until the time
the ICC representatives testified,
the committee didn't receive much

help on which to write a new bill,
except
some
recommendations
from

Major Oliver of the Savings

Bank

Group.

Up until commission testimosny,
one
salient point did come out.
Senators
erated

Wheeler and Reed

and

time

reit¬

that

again

neither the Senate Committee nor

where

No.. 1

15%

This

remember.

At another stage in

the hearing,

when Mr. France of the Seaboard

stated

that

the

tion of Section

creditors

practical
20-C

opera¬

would

force

give' hp; their

legal
stockholders, Senator
Wheeler took violent exception,
saying that there was nothing in

rights ■ 'to

;

20-C which would force creditors
to

give

ers.

anything to stockhold-'
possibly in some

He said that

the tt present ;;

cases

plans ; took

something that belonged to junior
creditors in light of changed con¬
ditions.
In other" words,fit
was
not their intent to

force creditors

to accept

that

unjust compromises, but
to correct any inequities

existed

cumstances.

under

cir¬

present

This is point No. 2.

;
The Committee repeatedly ex¬
pressed disappointment at the fact

that the roads in

receivership had
similarly, in pro¬
portion, to the solvent roads' re¬
tirements, and while efforts were
made by the Seaboard Air Line
representatives to detail the rea¬
sons
as
to
why such a course
would have been impossible, the
Committee
apparently remained
not retired debt

unconvinced.
side

figures,

existed.:

value

point, incidentally, was also em¬
phasized by the ICC. That's point

merely

as to operating ex¬
(assuming no changes in
wages
were
in
sight)
checks
closely with our own in dollars,
but because we expect more busi¬
ness our operating ratio is 73!/2%
of;gross while his is T6V2%. But,
as
I
said, Dr. Parmelee would
naturally be more conservative

guess

not

with
retire

the
debt

inclined

trustees
to

the

did

who

extent in¬

$468 million, of which about $180

dicated they should have.
I have been of the opinion that
the creditors owed the properties,

million

and

rise

wage
ness

lower

1946 probable busi¬

011

volume

would

should
income

probable

penses

ting still further increases which
are

the last half of this year strikes
and price controversies will be
will be

believe

bothersome

too

freight, another
million in passenger, and
close to $100 .million
in other
services. We are assuming that in

bandied about

the final result.,

Class

comes

don't

was

ago.

estimated

$500 million higher, of which $200

in just about -every case, re¬
questing
changes in the rules
along "make-work" ideas—what

to render

boats, give to the railroads

facts

One gross would be around $6,800
million. Our own guess is almost

in the

»/*:•
the Congress could legislate value
made esti¬

in¬
creases
to
request V changes % in
working rules which, if .enacted,

the

hand

asking for, or about 15%, will
be granted. The unions will also from
are

and

against the trucks,
sharply increased costs

have

you

re¬

1941h$IM$^ople in the railroad
•#£as|iare, essential;in'^the;interr fieldr
ests

the

•

the increases in wages

would ex¬
procession of
convinced
that
you

...

Similarly, we have
1946, and while

all know that

are,

and costs.

the

«ls

for

position and. in making his fore¬
cast, was testifying, in behalf o

opinion, they will

At
•

Much of the testimony

March

the

reductions

and

put

they, and they alone, were
right.
:y;'
•

for

know of

because

•

railroads

Instead,

Senator

•

Estimate 1946

further

Department

better

be found in other

can

fields;

for

make

volume

of the railroads

essential and modern

the

railroads can
continue to work on long range
and costly improvements, to effect

freight rates should be increased
by upwards of 30% if highway
truckers-of freight are to continue
an

will

values than

this/rate
fcconomy.f In Th6: yneanwhile, fy*
could be
gqitep quickly might
Though' the railroads'will suffer
also, that these companies are op¬ f
jeopardize, for " a long period of
forrr ^increased t wages and costs,
time to come, their chances of
erating on so-called "emergency"' without
get¬
fcompeiriating rate in¬
roads

time many of our railroad

securities

and

that

deteriorating condi*
This is in spite of the fact'

rates, suspended

believe

greater' proportionate' volume

own

tions.

firmly

proper

life

visualize

the

small

By this time also,
the

record.

the

lay do to market values?

profits, which, to
the least, would be helpful.;

say

the record recited the difficulties

point

forward

come

pect, there was
people
firmly

ques¬

The-War'Shipping 'Administra¬
tion is tepoirted to have estimated

am.

nouncement of a

niceties

extra

enjoyed.

might be gained. The

shipper to consignee.

political necessity, involving,, as
does, the use of the Panama
Canal, and we might see some
land trucking
sort of bonuses invoked to keep
liquidate.
this!service running. Representa¬
:
A vast majority of these com¬
tives of shipping interests are of
panies are generally-small;! and
the opinion that substantial in¬
their plight receives only local at¬
creases in freight rates can be ex¬
tention, but operating expenses
pected,
They
are
opposed to
have gone well beyond gross rev¬
horizontal increases which would
enues.;
The spiraling adverse ef¬
tend to
Last week's papers carried

the

to the

elimination of pre-war losses

railroad load¬

twelve

Reed, were most
hearing anybody wtm

tion is "When?" and what will de¬

prosperity when debts
paid off and savings

are

where

re¬

Parmelee holds

railroads. Because of their limited

attendant

versus

torically

evidences

the

and

ward.

worsen), and remembering,
also, again, that railroad rates put
ceilings on other rates, I believe
it is very likely that
eventually
large rate increases, running up to

coming stronger and stronger and,

many

recent

goods may be handled

some

thinks of the trucks and the boats
in connection with harming the

naturally

ship loading

before, because the public always

capacities, the mortality among
highway carriers of freight is
growing at a rapid pace, and some

and ! because

by dif¬

may

instance, it is estimated that

unloading,

dustry well-being is determined
by the marginal entity which suf¬

Trucks and Ships

ports

which

about 40% of the average vessel's
time is spent in-port loading and

in¬

fers the impacts of cost increases..

various

unions

thus

The

have
regulations at variance with each
other,
.
,
,
*

Remember this! When costs go
tip the "break even" - point is

earn.

entail

huge capital
investment, but also the methods
d? packaging of the freight by
shippers and the handling of the

basis.

raised,

will

senger

built

Com¬

Sena'to rs

conditions of the trucks and boats

can

with

record

wanted

ICC

Senate

would

which

the

principally

though the hearings would never
end, as you would expect, the
average citizen did not come for¬

been

running expenses. In other
words, terminal costs have gone
up to even, a greater extent than

some

have

that out recently in Philip Morris,

than

that

state

mittee,
Wheeler

effects

been

ings than on intangibles such as
long * term hopes.
We've found

"Washington
Merry-go-round": First, I want to

patient in

for

the

their favor

study. In effect, our conclu¬
sions are that the degree of pas¬

earn¬

Hobbs and Sobs!

for

seemed

have

in¬

Now

into

turn

com¬

need

Wheeler,

times

solved, for it involves
not! only the modernization of
boats and port facilities, both of

that securities sell

too.

the*

who

better values laying around.

many

this

something

busi¬

is Vout

Remember,

com¬

panies will likely earn too much
get any substantial rebate. So

time, the railroads would have in

passenger

1946

tions likely to continue

our

railroads.

year

familiar with

20%

dual"; situation!

sharply, the ter¬

be that most of those

may

strikes and traffic distor¬

With

in these directions follows the

running

increased

such

badly and quickly.1,

creases

Dresser, Western Union, et cetera. operating
costs,
and
present
All the "wartime" bookkeeping probably the most difficult
prob¬

with

have

minal expenses have increased to
the point where they are greater

few

future, these things should not be
forgotten. I think probably, also,
that
a
good many of you are

waiting

nection

that

are

counter-balance

business is directly linked
to the; degree qf national
prosperity. !If !ff
f
In a good many respects it is
similar to department store busi¬
ness,
consumption of meat, and
similar lines, in that improvement

specific in exploring each indivi¬

of the officials

contacted

petitors'

for the

ness

much

not

opinion, and it seems that more
may be gained by a waiting at¬
titude. Against this opinion we

im¬

bearish factors

few

have

longer
on
these
points, but from the standpoint of
bullish

that

Even

accrued by

were

comparatively

Quite

about the improved property con¬
ditions and the efficiency of the

railroads

profits taxes

cess
a

in
making our calculations we
ignored tax recoveries 011 the
jyt-' If, I,
-J theory that, at best, carrybacks
Most
of
the
railroads,
with may be substantial in only one or
heir flush cash positions, are able two
instances.
to take a temporary "beating" this
Some roads may work for noth¬
year, especially if they will gain
ing in 1946, and I wouldn't want
proportionately by being patient. to own their securities with so

;

effect, the champions of the
battle
for
increased

pal competitors!

unless the railroad rates are lifted

The

;f;

the Administration

would

guess

critical. Railroad rates

);■, *1f.;f;

how

just

good could be gained from seek¬
ing compensating increases at this

railroads';

The situation in shipping in U. S,
waters, and through the Canal, is
even

rails, therefore, is all in their

problems

poses

magnitude.

should

idea

will go in sanctioning price raises.
If the policy is to be tough, my

great; importance,
competitive position of

the

your

generalize

capital

and

weeks

clearer

far the OPA

advantages ..of

equipment

bothersome

some

Further¬

will be required to modernize the

twelve

that

service.

large

very

more,

con¬

■

Now

transportation

few

iave

1533

1946

lift

taxes,
net

expenses

absorbed

after

give

in
a

charges

and wage increases of about

$325

million. The big question is "Who

gets this?" If the bulk goes to only
a

few companies, a large

the

industry operates for

part of
no

gain.

The greatest argument over our

estimate,
Federal

income

mind, concerns
Large ex¬

taxes.

that

until

such

time

the

relative pdsitions of the creditors
had been ascertained the trustees
would

have

been

taking a very
retire general
securities from earnings contrib¬
uted by particular liens.
What
dangerous

would

step

have

trustees had

happened -if
bought general

ket bonds before the

(Continued

claims

the
mar¬
were

page 1534)

THE COMMERCIAL & FINANCIAL CHRONICLE-

1534

Conditions Affecting Railroad Values

sions of the

None is likely to hap¬
(Continued from page 1533)
i miracles!
There is little latitude pos¬
.classified or satisfied, and later pen!
sible left to the Committee!
the
bonds
went
off
sharply?
si believe that the Seaboard plan
"Wouldn't the trustees have been
will not be sent back, but that
censured? It is still undisputed
the plan will go through quickly
that hindsight is better than fore¬
as written.
The properties have
sight! <
^
V When,
these
claims questions been sold at foreclosure, the sale
confirmed by the court, and the
£ were settled, after long legal argu¬
deal is 99% finished.
/,
ments, a plan was the result, and
On the other hand, Hock Island
•after that plan was on its way to
looks as though the present plan
.completion,
the
question
of
will be altered considerably, with
whether or not debt reduction

.•I

promulgate

Hincks
Haven

and,

said

long time

rest for the forum

and so,

one

Judge

his

New

decisions, "Indeed, in this

^connection, it may be observed
'

that ff the courts gave too much
•

to* 'the latest fluctuation
pertaining to railroad

weight
of

value

properties and their securities, no
plan would ever proceed to con¬
summation," •

•/I
'

claims:
of

foreclosed

were

upon

the time of court approval, and
not
have * been
carried

could

through

1;;

without retaining
the
Before long we will
Supreme Court decision in

status quo.

get

the Denver & Bio
ern

that

question.
' In
its

;

state
>

■

Grande West¬

covering

case

and

these

should
•

points,

settle

the

Commerce

default

cruals.

There

and' interest

ac¬

anything. There may be
exception* but this is a, gen¬
,

Commission, by introduc¬

ing

a statement showing earnings
for the 10 years from 1932 to 1941,
and the years from 1931 to
1944,
V on

the

capitalizations, where¬
earnings for the 10-year

new

.period .showed deficits in all cases,
and very nominal earnings on the
stocks for the longer pethe assertions

common

xiod, swept aside
that

had

.were

been

made

that

they"

not

open-minded in their
structures.
Statements

capital

have been made that these struc? * tures were based

1931-35 de¬

gression earnings, but the Com¬
mission absolutely disclaimed that
such was the case. Their
figures
will be hard to

■

I
:

believe

overcome.

that

tion made by the

bill

ICC, wherein

.they recommend that

over-all

'V-'T';"'\ '■

'V-"'-'V

Conclusions
think the long-term

future is

will reverse the Circuit
Court opinion remanding the plan

In the immediate

dered,

In other

back to the Commission.

words, I believe this plan will be
approved by the Supreme Court
and, furthermore, I believe strong¬
ly that the Rio Grande Western
will not* come under the provi¬

reorganization

plans
adjustrments as might be found justified
t by present conditions.
Under this
procedure the long, legal battles

-.back to the ICC for such

future, however,
there are all sorts of imponder¬
ables and we,. in effect, may have
to sit through the night waiting
for the dawn of a brighter day.
If you

have good securities, event¬

out to

ually they should .work
much higher levels*
/

;

International! Politics §
And the Loan to Britain

Dr~ J. V.
-

another

conflict,

however
vague and remote it may still ap¬
pear* is likely to bring back a

every

Name

Country.

Professor. Kyriakos:
^Varvaressos

The

decision

that

the

United

States

the top managerial
post in the Bank, but not in the Fund, bears the White House seal.
This decision removed such hopes as Assistant Secretary of the
.

necessary, the present
be effected.

plans would

You will agree that the safest
thing for me to say .on the plans
for the large roads under 77 is
that they will "go back/'
This
idea is universally accepted, and
no

would blame

one

me,

under

the

circumstances, if I were wrong.
However, ! .do have definite per¬
sonal

opinions and I

honest

with

them.
On

you

wouldn't be

withheld

■

overfall-basis I drew the

position of the Fund's managing director.
None the. lesS, As
United States executive director- on^ the Eurid; a^ position:
which
tlie Senate has endorsed him, the Treasury's monetary • economist
won't be.doing so badly. . . , That job pays $17,000 after taxes.',.

♦

The President of the Bank,

whose salary will be $30,000 after taxes,
be an: American.,; ..Presumably he will be someone alreacjy

is! to

prominent in this country and moreover ;persohna gr^ta to the in¬
vestment banking fraternity.
■*
"
'
v
;
If a European is made general manager of the Fund with its
$3O,0OO-after-taxes honorarium, possible candidates are Camille Gutt
of Belgium; and- Jnhan^Willem^Beyen of the Netherlands: rvr.
'a 'yj
The figures, mentioned do not' include representation allow¬
ance.

•

the

Bretton

Woods

Conference

Directors

there

had

never

been

any

sharp definition of the provision in the articles that the executive
directors should function in continuous session. The British at BW
had one idea and the Americans another, and there had been no
spirit of collaboration in the place it has gone a long way towards
of the spirit of hard bargaining disarming
Conservative opposi¬ meeting of minds. This question the British in effect tried .to re¬
that
has
prevailed in jrgcent tion to the Washington Financial open; at Savannah, but they found Vinson a good deal less movable
months.
J
Agreement. For while they still than Mr/ Morgenthau,/aven thoughdihe Judge^is no iess a friehd of
British opinion is now decide feel that the terms accepted by IheyBrUish^i^^/ix®^^
A feature .of ;the American plan which particularly went against
edly more in favor of the loan Lord Keynes endanger the eco¬
than it was until a few weeks ago,. nomic foundations of the British the British grain is that which involves participation of Latin Amer¬
Its terms are still Considered very Empire, they regard the military ican and other small nations in the management of the Fund "and
What the British wanted was a set-up with a powerful
harsh. But it is felt that, in face menace to the Empire as more Rank.
general manager subject .to the policies laid down in the capitals of
of the major danger that appears danger6usf:|$:^^,;::';;
the member countries, who through their treasuries could tighten
to
It is also felt that unemploy¬
threaten
the
country
once
more, considerations of trade and; ment through lack of raw ma¬ the bit when- necessary, sending top-flight /officials to occasional:
finance must fade into insignifi¬ terials, arid discontent through in¬ meetings, v.. The British can see no heed for aboard of, 12 or mote
1 On this point: the United States has
cance. And many former oppon¬
adequate rations, that would be tb be in continuous/session;.
by
a
Great
Power."
Whether this view is right or not,
firmly

...

ents 'of

the

view the
litical

loan

have

than

come

transaction from

rather

po¬

economic

angle. They are as convinced as
ever that in the long run it will

inevitable

case >

the> non-

ratification

of the
loan, would
materially weaken the country in
face of .the external threat, and
would

further

encourage

ag¬

unemployment gressive policy on the part of the;
Government.
Moreover,
States, -sacrificing Soviet

importing

from the United

Umpire trade without being com¬
pensated through an' increase of
trade with foreign countries, and
submitting to a permanent cur¬

evidence

tailment

number of those

financial

they

policies.

Nevertheless,

prepared reluctantly
to accept the terms as the lesser
of the two evils.
are now

•

Britain's

economic

weak.ness
would
powerfully
strengthen Communism in France
and

vor

Western
of

Europe where the
genuinely in fa¬

compromised somewhat at Savannah, by agreeing that if an alternate
is always at hand, the; executive director of a member country need
not be continuously present. , , .
^
\ ^
A; Another British objection at'Savannah was the high salaries
which the American group insisted upon.: , . Whether ^this^ insistence
is to any extent explained by the fact that some of the officials most
closely identified with the development of the Bretton Woods idea
are candidates or nominees for employment in the Fund or Bank Is
a matter1 for conjecture.
The British, and some others as well, can
see ■ no /need for paying shch high salaries as ;$17,000; after taxes for
executive directors selected on a political basis and in some cases
;

that system has been in¬

creased

millions

oppor¬

tunists who simply want to be on
the winning side. Hitherto con¬

tinental countries have continued
to look upon London as a poten¬

Opponents' Attitude

turn

normal

conditions is

stake. It has become evident
in the absence of the

loan,

duction

British

well because of/the political plums involved. V.
The American view, attributed to Secretary Vinson, is that the

Fund and Bank should- obtain high-grade men and that these cannot
be had unless the salaries are high.
.
In respect to this argument, it
.

much
cases

realized

must

that

American

commercial salary

that,
a

re¬

occupation

The

experience

gave a foretaste of

with

standards

highest paid of ^heir fellow countrymen "after taxes"; for another
thing*;^it^^ doubtful Whether^^subh/AmericanvOffxcials as^^ Harry White
or
E. G. Collado ;were discontented ^with /their Goyernmept;
a

It is not so many years ago that these men were

working quite

much smaller Government emoluments. , v v What has
• into
Government is the Wall Street salary
standard, and it coulcl conceivably lead to discontent among other
happily

been ^introduced

now

United States officials who will be living in Washington* alongside
these highly paid.'tax^exempt executives with expense accounts;f.

France Hore-again-ihe British failed to prevail at Savannah, w.
(Linked with the foregoing "was the United Kingdom's

things to^me«

The French Government's request
for a further credit of

are

higher than the corresponding salaries abroad. . . . In some
one may find executive directors or their alternates among the

desire,

suPPO*^^sbyri'seVerai Other CountriesfHo have the headquarters

the"*Fund and Bank in New York, or anywhere "but'Washington.,.
000, in addition to yfjfie; ££50,000*- The British ;jdo not difcO" tothe new institutions in the political
000 already
tbe^^State and ^Treasury Departments. ; . . They would
granted. and-oxha}iBt-r shadew
inevitable.
For the foreign ex¬ ed, had
to be > refused V by. .the rather that the social contacts Af the Fund and I Bank executives be
change required for their main¬ British Treasury, owing to the un-i with> Wall :Street bankers than with Government brain trusters. ; * .
tenance Abroad just would not be
certainty of the loan prospects^ This ^is the Apposite ofiwhat-Washington wanted, and got. , . . It will
there. Every dollar would then Within a few
days, >.M. Thorez* be recalled that many months ago Dr. Harry White was quoted

armies 4n ex-enemy countries and
in the Middle East would become

be needed in order to procure the
minimum of food

indispensable
and

raw material imports.
^
Some of the territories at pres-;
eat occupied wobld then have to
be relinquished* even though this

would

mean

direct

com¬

vacuum; and to
vacuum

leader of the French Communists*
in a position 4o .announce that

was

the Soviet Government would

ex*

means

the

press

stating that he thought the financial capital of .the
'Washington; •.•••; He later issued a formal

United States should be in
press

.release^idenying-any sudi statement: "But reporters who wrote
insist that
^ -j/ i

port to France 500,000 tons, of' the story, after<;a small Press Conference* with*him still
grain. The difference between the tiwfy^d not Invent the story.
/.
•

attitude

of London

and

Moscow

indirect has made many Frenchmen think,

Russian occupation. As one
mentator put it: "Moscow,

following conclusions: ;
Nature,- abhors* a
First, don't pin your hopes on Moseow!s mind
.

seek

TreaSurpHarry White tnay. have -had to obtain the high-salaried-

■

Country

' Mr< ..Camille Gutt—i-.-BeJgium

•

■

Name

The Function .of the Executive

the

review tbem to determine whether
or not
the additional securities
should beusaued. I assume from
this statement .that if no additional
securities
were
thought

Saad-Egypt

Greece Mr.- J. W. Beyen—.Netherlands
Mr. .Die Colbj ornseni——Norway- Mr; R. B. Bryce—-——- ^Canada
Mr/^Yictor Moller^———i-iChile Dr. Leon Baranski-——--Poland
Dr. Louis Machado y Ortega_Cuba. -,, ^
•
■
*
.,
1:
;:

territory which: is not held

Mladek-t.Czechoslovakia

Mr..Ahmed'Zeki Bey

The.International Bank for Reconstruction and Development
<,...•}.«- Nominations for' Executive Directory a
rv;" ■
(in the order received)

(Continued from first page)
of

tial source of economic assistance,
So long as the alternative to in spite of the evidence of the
principal delay
under Section 77, as written, will the loan was
merely a higher de¬ great difficulties which Britain
;
not have been wasted, or would gree of austerity, these opponents has to face. If, however, the loan
r not have to be indulged in
again, were willing to pay that price for is refused then hopes to expqpt
and that time would be saved.
retaining Britain's freedom of ac¬ anything of London will be aban-?
f'v - The Commission agreed that if tion.
They have now come to the doned, and all eyes-,will.turn^to-i
> the plans came back to them for
conclusion, however, that much wards Moscow.
.inspection under this amendment more than mere redaction of ra¬
to 77 they would be willing to tions and postponement of a re¬ Refusal of Sterling Loan to France

which 'were

•

Country
Mr; .Louis Rasminsky^i--Canada
Mr. Camille Gutt-J—Belgium

Santos-Filho_„__._—^Brazil

Mr. G. W. J. Bruins—Netherlands

'iVi

very bright for the better - class
of railroad securities and equities.

Britain's freedom to
amend-; determine her own economic and

Section 77 be written to

the

and drawing on

case,

'/-'.OVv v\$-!!'v;

■

Grande' Western

Rio

Dos

tell

long-term knowledge, I firmly be¬
lieve that the decision, when ren¬

mean

the

:by the Senate Committee, it is
quite likely to follow the sugges¬

refer

Denver

when

having to do with the roads presently in reorganization is written

ument to

I'll

answer

Name

Dr: Rodrige Gomez.—^—Mexico
Dr. Francisco Alves
>
"

you.

;
deep

going off
am going to say now
is my own personal opinion.
We
have disagreement on this in Our
office —• preponderant
disagree¬
ment, I might add.
*
: '
*
However, after listening to, the
Supreme Court arguments in the

the

know

Country

If I disagree with you, or if
subsequent events prove me
wrong, do not hold ~it against me
too much.
Usually we may be
faced With some problem, but in
this case not only the railroad
industry, but its individual com¬
ponents, are faced, with all sortsof problems.
'

What I

possibility

seems no

eralization.

;

I'm

Now

end!

Name

"sticking my neck out,"
I will try to be frank with
any questions asked.
If I

Commission

that the old stocks generally will

The

1
the

there "are only seven posts to be filled, one can¬
could not beelected/f
'
^
,
v

The International Monetary Fund '
Nominations for Executive Directors
(in the order received)

Inter¬

be. worth
an

goes!

period.,

testimony

showed, first, the hopelessness,
generally, of the debtor company's
interests* because of the tremendously large amounts of matured

A debt

don't

opinion, the

in my

effect,

funding mortgage bonds getting
lifting."

(Continued from first page)'"

v/a. Since

didate (the^Greek)

averse

you

"face

names,

As many of you know, I am not

the issues of the class of the re¬
fair-sized

Fund and Bank Ends

find

prepared statements and leave the

■

In my opin¬

myself drifting into a
discussion
of
things that more
properly belong in the question
and answer period and, therefore,
I think it best to conclude the

•

themselves have taken

bianguial Meeting of World

bill.

ion, similarly to Seabqard, the Rio
Grande case is also 99 % closed. /;

would have endangered the plans,
became
paramount.
The
plans

new

Thmsday;March21;1946

••; The,:Closing!(1Sessloii .':v
closingc'sessiom of the meetin£^-:t
and -Bank
S^ernors/several iof; the miembers i-eadrtheir valedictory^ sphfetbes;
/ ;t At one side representatives of Russia, Denmark, Australia and

,'
.on French pub^^^p
lie opinion is viewed with .grave ..^^..^t^he
and the reaction

concern on

nel.

this side of the -Chan¬

Volume 163

Number 4474

New Zealand sat at a green baize table in their, role as observers.
One of them was quietly reading a
newspaper, spread out before
.

-Seated at the table at the .plenary session, at the plgce marked
4<U. S." was Mr. William
McChesney Martin, Chairman of the
«-'•

Export-Import Bank

and

member of the NACV;

b;een at the Savannah meetihgs ior
>.

Mr. Martin had

'■Czechos'kia..".:.::

and

...t>T-y

•

Policy for Peace

from

were

*■

not

while other nations remain armed,

in the interest
cannot disarm,
j Between 1918 and 1941 there
grew up in this country an im¬
portant body of pacifist senti¬
ment. /The
dominant theme of
the United States,

North Africa to Berlin

of world peace,

professional soldiers and

sailors.

They were civilians in

.Lord. Keynes, in his final, speech. ^complimented tKb.American; Uniform.
on the "expedition with .which .th^-proceedings
f This is a fine tradition. Having

chairman, Vinson,

had beerr handled.?;

Earlier in the week a Britisher coming out
one of^the
committee-meetings |had been' heard -gfousirig at the
American steamroller tactics.
*/
<«•'«' * - »

preserved it in war, we should
•

0-/

Keynes also complimented the Chairman on having kept the
properly informed.
ivv.
Thus he touched on a sore point with
the British.
A few days ago the Savannah "Morning News'' car¬

.press

ried

the

peace.

civilian

traditions

with

to ^maintain

the

tary strength at a level to match

our

war

? . Earlieh4n the week/it was learned,that; Keynes bad ^ecMed hotr
to .speak to the press here .before .the end t>f the
meetings, and thenoply ifhe sliould have a grouse/to; air. ,:. ;
•

views during
<

his

waist.

/'
.v"

Americans held

..»

war

Hotel

Oglethorpe's swimming pool.

McChesney Martin.

jubilant mood over
Conference; /; If. Soon there was improptu sing¬
ing, led by Peru's former Finance Minister, Montero Bernales, j. ; ; The
singing, in which all
joined, moved alternately from the- Spanishspeaking to the English-speaking .side of-the room
a

where

held.

the
,

Latin-American
Such

songs

had

caucuses

It is

1939

had

strength

armed

permitted our
dwindle^ to

that we would not
spared, we regretted that we
were not prepared.
The political
parties then indicted each other
for the lack of preparedness. The
argument was no substitute for
be

; I
We learned that the example of

weapons.

iast session. Secretary of the Treasury
and pleas¬

to accept

spirit than in words. That was the way it was
at Bretton> Woods.
That was the way I felt it
would be at Savannah. And so it has been.

weakness set by the United States
did

not

and

compel

Japan

Italy and

Germany to follow suit. On-

the

contrary,

cited them to

in¬

weakness

our

bolder aggres¬

ever

sions./; Only the accidents of his¬

tory gave

two years in which

to prepare before the blow fell at
Pearl Harbor.#
Those

two

•

not

were

years

We
1941,
consequence
was
that
brave
men
died
to
regain- -the/
ground we could not hold in the
enough to repair the damage.
not

were

"Although
have

been

expectations

fulfilled—more

were

than

high, they

fulfilled.

colleagues, I do believe that if we had done ,no
that could be reduced to writing,, if we

-"La Cucaracha" and

work

"Hail, Hail, the Gang's All Here." broke the quiet
Wilmington Island.
Every, one was very

...

It is difficult for
"the fact that now we part.
"When we assembled 10 days ago, I was con¬
fident that we would have a unity of purpose,
that we would have even more agreement in
me

The Latins were in
their achievements at, the
.

thait it does not work.

grew upon us

A man asks little more.

ant.

the Americans jwho turned up to pay-their re¬
spects were Judge Vinson, Harry White and Wil¬
liam

were

Vinson read the following address:
"Our work has been worthwhile

Among

this point of "view is an admirable
The trouble with the idea is

one.

Speech by Secretary Vinson

following the last formal session, the Latin-

*•

informal reception at the Beach House by the

States

executive directors.

•

The

token proportions. When the war
came
and the realization slowly

the; functions and remunerations of the

over

At the wind-up of the

In the late afternoon

hated

Savannah committee sessions.

of the

some

behind the differences

When Keynes read his farewell jibe, he held his manuscript at

■

over

United

the

suit.

instinct which underlay

Without consciously deciding to

Our Disarmament Experience
i

world

peaceful

do so, we actually tried it. By the
time the Nazis attacked Poland

to fight again.

ever

the

plain

if all these plain men simply

refused

responsibilities in the world.

;

world

scrap all its armaments and com¬
pletely demobilize its Army and
Navy, it was said, the force of its
example would compel the rest of

to prepare

latter

complimented the local newspaper Jon getting the No nation is more willing than
handicaps of insufficient press conferences, by dig¬ the United States to participate in
ging for it rather,than having the news handed out on'a platter
any reasonable plan for the gen¬
It is always necessary to read between the lines in a
^Ceynes spPedh^

not

was

and that there would be no more

under the

news

war

the

men

mili¬

our

end

for war. It was argued that

}h The problem is how "to reconcile
necessity

interview, with vPaul Bareau of the British \delegation,

Which

relinquish it in

our

this movement was that the way

not

of armaments. But

eral reduction

(Continued from page 1496)
sailors who made miltary history
from
New Caledonia to Tokyo
r

several days,
/ .•' $1
One. :of. the country-cards at - the conference table bo're^a^sigri'

1535

THE COMMERCIAL & FINANCIAL CHRONICLE

had

not

the machinery into operation, our
meeting still would have been of highest value.

...

jovial,;" 4^

put

ready

and

first

weeks

Dec.

the

war.

;

»v

This tragic experience makes us
realize that weakness invites ag¬

this gression. Weakness causes others
An experience to act as they would not act if
much more than pleasure. they thought that our words were
of Latins and bthers
coming through the door
Their souls and hearts are lifted and they go backed by strength.
singing.
.'. They first stopped before the threeaway better men.
They become couriers of the :
piece dinner orchestra and sang "God Bless
Secretary Vinson
.Today there is grave danger
good.
I am sure that no one will regard it as that the sense of relief which ac¬
America" and "Cielito Lindo." When the orchesHarry l). Whit*
sacrilegious if I say that when well intentioned men from 40 coun¬
.. tra played "God Save the King" everyone stood"
companies the end of the war may
tries get together to work, to give the world a chance for peace and
up.
The singing continued after the Latin-Americans had
cause us once again to do unwit¬
proceeded
to their tables.'
prosperity, and find that their hearts beat as one, it is»a satisfaction tingly what we would
;
»
«•*,
neyer do
like unto that religious moment when a man feels that he is in
v
Most-spirited song leader seemed to be Peru's Monteros.
consciously.
j
v
-v
tune with the purposes of the*Divine.
The Belgians seemed a bit surprised at the
exuberance of thb?West"We Jhad aH' of thfs, and also We did the work that we " came Wants Selected Service Extended
Hemisphere, v ^
"I believe this because of the richness of

A little later guests in the
dining room were
surprised to hear the massed voices of the group

experience of meeting together.
such

this gives men

•

«■

•

■

...

Secretary Vinson entered and took

his place, the crowd
Home," whereupon the Judge threw kisses

sang 'My Old Kentucky
*to all those present.

national

anthems iollowed, during one of which
Lord Keynes—who with his wife had been
dining at a small table
/close to the round table regularly reserved for Judge Vinson and
Lis guests—walked over to Vinson and
asked:"What's this all about?"

The World Fund

and Bank

are

now

established.

They

No onedn

are

They are- living organisms.
These institu¬
tions, will give us the advantages of living things, but in turn they
must be given the sustenance and atmosphere that make living things
giow and flourish.

...

Several other

do.

beginning to breathe.

out of Government

desires to extend for a single day

than

forced

families

their

the

necessary

separation

nten

"from

and

en-

from
their

one could see mixed; groups Of delegates ; and
enjoying the occasion, while a .table of Latin-Americans
senerade Lord Keynes with "For' He's a
Jolly Good .FelKeynes rose 4o bow acknowledgment of the accolade,

Everywhere

advisors
rose, to

low."

and when they next sangr
"Tipperary" for him, he
: In, so as to live up to his new-won!
reputation.

modestly joined

Relative fo reports that Federal -Reserve authorities
propose to
spek major changes in the Federal Reserve Act designed to strengthen
,

credit control powers and to limit further monetization of the public
debt, this correspondent has
been advised by a high
Treasury official that no
such project has had
Treasury indorsement.

Moreover,

inquiry

Board has reached

suggestions
reserves.

the

that

conclusions

will

certainly has given

seek

from

Congress the

indication that it
to require

power

member banks :to hold any .fixed

proportion of

always shied
over

member banks

may, and
S.

Eccles
sons

i.'j
•

investments^

even:

though he

very

goverhmieht^ according; to per¬
familiar with his views/ .w J
%J

British

vs;

r-lt.

been

managed

small

directorate

whose judgment the British could trust.

of
.

individuals

well-known

While operated by governments, the Clearing Union would have
combined some of the best features of "City" and Whitehall tradi¬
tion.
On this point the British Were defeated in the negotiations
t

which led to

Bretton Woods.

there

should

The United

States view was that

multilateral

participation in the'management, and
principle was adopted, there Was no^stopping short of hav¬
ing all the nations participate in the control.
This is the back¬
ground of the plain-spoken hiatus between British and American
once

this

fect.,
*

the

act

is still in ef¬

lective Service Act

every

while the Se¬

now

is permitted

May 15 of ihis year, the
situation, will become critical. It
expire

vein, spoke as follows:

-on

is imperative

that the act be ex¬
period in

tended at least for the

should not conclude these
our

"I should like to add

further word of ap-;
you

have

carried put the duty,; which we entrusted to you,
of

keeping the Press properly informed of the
of our proceedings and our conclusions.

course

I have

never

taken

part in

It is

important,

even

the long run, that we have at all
times a reserve of trained men
who
1

conference where

can

need.

called

upon

r. r

case

number

■

methods

have

this, sometimes difficult, task has been so well
performed: The accuracy, suitability and objec-

been proposed for obtaining this
trained reserve. As Secretary of

tiyity.{of "the- information which you, sir, have
passed Jpri" to the Press on our behalf has been
beyond/ criticism. It may be that our subsequent

whole-hearted

meetings' Will1 take place in conditions of

universal

preciation for the* smanner in/ which

Americans

and in the good people of

This is true

cessful conclusion.

In general,^thfevAmerican

delegation's views have prevailedr.at
Savannah, although some concessions were made to the United King¬
dom viewpoint,
The Fund and Bank are very different Irom th'e
original .Keynes Clearing Union in important respects.
.
Keynes'
original idea was for a large Fund to be drawn upon .very freely
without too much limitation as to purpose,
v
This Fund would have
r

to return to their homes.

shall

proceedings without giving ex-; which the' Army and the Navy
have the multiple responsibility
high appreciation of your con-;
for the occupation of Germany
duct in the Chair on the occasion of this, our
and Japan, for the protection of
Inaugural Meeting.
I am sure that I speak for
our
surpluses overseas,: for the
all those here present when I thank you for the
continuing defense of the United
dignity, patience, firmness, fairness to all and, I
States, and for the fulfillment of
may add, expedition with which you have (Pre¬
bur commitments, under the.;charr.\
sided over our affairs and steered them to a suc¬
"We

probably does, favor the/banks holding

short-term

Marriner

from ^ny. compulsory power

I have confidence in the Fund and Bank

Speech by Lord Keynes

Chairman Eccles, at least, has,

away

resolve as we leave Savannah that

Lord Keynes in a similar
"Mr. Chairman:

their deposits in the form of short-term Treasury

obligations.

part.

I* v/.

for; better control of member bank pression to
.

our

because I have confidence in you,
nation from which you come."

Reserve

to the recent

Let each of

career.

continue to do

Although Its views have not crystallized, the

Board
;

discloses
no

"They will not live well alone. They need the company of other peacetime business or employ¬
;
intergovernmental; institutions that are helping us to build a better ment.
But those who bear the re¬
world.
They need the company of wise, courageous, and interna¬
tionally honest;officials.
They need the company of people every sponsibility for the security and
where so that they Will not live as hot-house plants, dying opon welfare of the nation are alarmed
exposure to this practical old world.
The institutions need all of at the possibility that sufficient
the care, attention, and nourishment that we and others can give numbers of physically fit men
will not be available to replace
them.
"
I.:
those who have earned the right
"All of us intend that they should have a strong and illustrious

some¬

State,

I desire to

endorsement

what less

limelight. But I feel that an excellent
Lord. Keynes
precedent has been set for all cases where it is
proper and advisable that our proceedings should be made public.
/
"Perhaps I may also be allowed to take advantage of this op¬
portunity to say what a deep debt of gratitude we all feel to Mr.

Kelchner, our Secretary General, and to Mr. Home and to Mr.
Hooker, the temporary Secretaries of the two institutions, and to
their staffs, for the really remarkable efficiency and courtesy with
which they have attended to the formal business, to our informal
entertainment

and, generally, -to make us comfortable, happy and
:.;■; /•'■■/; •: /
r.// Z'
"Gentlemen, I invite you to signify in the usual way your
approval of a hearty vote of thanks lo Secretary Vinson, our Chairhome. •";■/■'.■

at
'

can

of the

that the system

be improved

experience

in its

by the system

pro¬

with

upon

administration.

probable that

can

the

years

be adapted

to the demands of education

civilian

for

proposal

military training.

/ It may be

posed

emphasize my
unequivocal

and

employment

and

ways

which will minimize friction and

disruption in private lives.

The

man.

important

thing, however,

(Continued

on page

1536)

THE COMMERCIAL & FINANCIAL CHRONICLE

1536

Christianity and Citizenship

Policy for Peace

(Continued from

(Continued, from page 1535)
get. started with the plan, and to
get started now.
; '
'4"
/;Favors Military Training
An

intelligently organized and
system of universal
military training will not under¬

administered
mine

the

American

tradition/of

the subordination of military au¬

thority to civilian authority,^
As

ing

for

effect of the

the

the boys, I

upon

see

for alarm. It is not realistic

cause

ifreason

recognized

into

unthinking brutes.

are

take the word

the old-timers among the, master
sergeants and chief petty officers,
American
recruits have
always

displayed
to

military
;<

education

the

of doing things.

way

anything about
the effects upon our boys of a
brief period of military training,
it is that they will learn too little
about 'being soldiers and sailors
rather than too much.
/ '/if' we are agreed that it is
necessary .for

the. United

States

to preserve an adequate degree of

strength, it is well to remember
that

the

only real alternative

universal military training is the
maintenance of the large profes¬
sional standing Army and Navy.

This

alternative

which

perience has shown to be

civilian

Government.

alternative

which

ex¬

threat
is

should

ac¬

cept only as a last resort.
A system of universal
training
will keep our armed forces from
becoming fixed in their ways and
habits.

Teachers

frequently learn

from

their

qutmoded/ Our defense in

pupils.
Youngsters
will not readily. respond to train¬
ing in methods which they know
be

the

modern

the

world

depends

upon

mobility and flexibility of our
forces and their
ability to

armed

make

'"V- It

of and

use

advance

keep up with the
science.

must

acknowledged that
universal
military training ^in¬
volves a major change in our so¬
ciety. Consequently, the people of

the United States have a
right to
know the/purposes to whicn this
reserve

military strength might
day be put. This Is a fair

some

question." It
-

deserves

fair

an¬

swer.

■/.;
answer" is '

The

simple.

The

United States is committed to the
of the
charter
of
the

support

United Nations.;
casion

will

arise,
and

the

support the pur¬

principles

the

charter;;
;I; cannot emphasize too strong¬
^

ly that the United States looks
the United Nations

enduring
No

Alliance

;

With

Great

not propose

curity in

Britain

to seek

se¬

alliance with the So¬

viet Union

against Great Britain
or an alliance with
Great Britain
against the Soviet Union.
We

to stand

propose

United

Nations

secure

equal

the

efforts

our

justice

tions and special
nation.

with

for

all

privilege for
'

We must maintain

our

na¬

strength,

therefore, for the primary pur¬
of preserving and using our

pose

influence in support of the Char¬
ter of the United Nations. We will
not

use

sive

juse
cial
I
a

our

strength for aggres¬
Neither

purposes.

will

it to support tyranny 'or

spe¬

privileges.
do

not

jsomber

that

the

desire to

conclude

the

Period

Sees

great' war there
period of anticlimax and
disillusionment. Those who fight
together expect, when the fight¬
ing is over, too much from one
another and

are

too

one

little

good¬

their

courses.

the vic¬

won

live

moving and changing world;

in
.

full

signifi¬

Authoritarian

try/to accomplish

first

forms

such

things
by
voluntary means is
branded as a stark reactionary.
Dr. R, H. Davies, a great scholar,
was
unquestionably right when
he said:

;

"The

development
of
social
services by the capitalistic state,
though necessary and humanita¬
rian, has nevertheless had its own
It has inhibited the

development of the personal spir¬
it, that spirit of love for the indi¬
vidual, concrete, human being. In

Government should

assume

re¬

Mr. Herbert Hoover recent¬

tion.

has

There

has

and

moves

control./He has

person¬

lesson

that

rights except such as are ac¬
by temporal authority—

and rights such as these may be
taken away as . arbitrarily as they

from the heart spreads its benefi¬

corded

He |s a slave of cir¬
cumstances, without control over

are

granted.

again to

blessings of peace,

face

the

national

our

these

life,

secure

-vV'
trends

Christian

citi-

zenship in general and the church;
in

particular

confronted with

are

/tremendous

challenge.
It; ig
Ford II / recently !
called "The Challenge of
Human"
Engineering." /He was speaking/'

what

Henry

of course, of the
responsiblities of *

management toward employees—
the fitting of people to
jobs, the
fitting of jobs to people, the de-V

velopment of opportunities for
employee advancement and the
improvement of communication5;
between

management

work¬

and

ers./

But, the need for human en/
gineering also exists in all other
aspects of our national life if meq
women

are

to fulfill the re*

sponsibilities of Christian citizen¬
ship.

cent influence

with

surer

much farther

and

results.

problems of our times/
Whether it speaks of human and
social needs or of the
imperatives
of world cooperation for
peace, it
holds high the banner of idealism.
All this is for the good of our na^
our world.

But I want to suggest to you one
of
activity and influence
which the church must not ne¬
area

glect if its teachings of Christian¬

ity are to be thoroughly infused
into modern citizenship.
That is!
the area of man's personal respon¬

Too Many Laws

his environment and without re¬

knotty

fact, tion and

which ali Americans should ever
remember.
That
which
comes

the

sponsibility for economic and "so¬
I believe the church
today is
cial welfare, I agree,; but it is dan¬
vitally aware of its role in public
gerous to relieve the people of all affairs.
It speaks eloquently and
responsibility for voluntary ac¬ with persuasion on many of the

than in the last-—and they were
achieved by voluntary methods

and

must be marshalled

the final, issue it has deepened the
disintegration
of
the
modern; and
man,"
"

his

lives

sponsibility except to obey.
What a contrast is citizenship
in a free society!; I often think of
an immortal phrase in our Amer¬
ican Declaration of Independence.
It epitomizes the concept of citi¬
zenship under the spell of the
Christian philosophy. Listen to it
again:
■

Third, instead of encouraging sibility to himself and to his felmoral responsibility in the indi¬ lowman.
The strength of Chris¬
vidual, we seek
to
solve
all tianity/ beyondMl doubt,/lies in
problems by writing laws.
Call its impact upon the individual hu¬
the Legislature and enact a stat¬ man
soul.
Indeed, Christianity
It takes time to pass from the
ute, or get a bill through Con¬ spread - with! unbelievable vitality *
psychology of war to the psychol¬
gress, is the panacea for every because it was a "grass-roots'1
ogy of peace. We must have pa¬
problem. And where that seems movement.
Build the character
tience as well as firmness.
We
too complex; the demand is for of
the/ indivdual,
it
taught,
must keep our feet on the ground.
"We hold these truths to be another
administrative
bureau strengthen his moral fiber, teach
We
cannot
afford to
lose
our
empowered to write its own .fick-r him that he bears a responsibility
self-evident:{ That all men are
tempers.
created equal; i that they are en¬ et.
It is little wonder that ours to himself and to his neighbor/
I am deeply convinced that the dowed
by their Creator with cer¬ has become a Government by per¬ and inspire him to voluntary self- f
peoples who fought together for tain inalienable rights; that among sonal edict—where men are ruled motivated
effort, and society will
freedom want to live together in these are
life, liberty and the pur¬ by directives and orders devised then rise to higher ground. That
peace.
I am deeply; convinced suit of Itappiness. That to secure by zealots hungering for- power. was the
technique. It was not a
that the peoples of the United
these rights, governments are in¬ Managed economy, governmental "From
the
top down" sort of
Nations are sincerely committed stituted
movement.
among : men,
deriving competition with business,
It was not a "Let u$
re¬
to the Charter.
•,
their j ust powers from the con¬ striction of individual enterprise pass a law
and, forget" attitude*
,

There are always some of little
faith; some who still believe that
they cannot get their due except

sent of the

drew their inspiration from!; the

authoritarian

Sermon

ment. • 7 Such

force.

There

others

are

who

The

still believe that ancient

privilege
nothing but force of
arms. /;
;
.!■ v/^'vvBut with firmness in the right
will yield to

not

alone

as we

see-

it, but

the

aggregate sentiments of mankind
see it, and with patience and un¬

derstanding

must

and

shall

achieve

a just and
enduring peace
for ourselves and all nations.

men

governed;

the Mount.

come

full fruition in any society where
the. indivdual citizen, is. not free
to order his: own life within
a
framework of law established by
the consent of the people.
Chris¬

tianity, to be fruitful in practice,
responsibilty. of the
indivdual.
Responsibilty of the
individual, in turn, presupposes

presupposes

freedom under the law. The ideals

of. Christianity are the ideals of
dynamic and free citizenship,"

Krug Takes Office
As Secy. Of Interior

This brings: us face to face with
situation in the United States

our

today.

the interdependability

Julius A. Krug took the oath of
office on March 18 as Secretary of

of Christian principles and politi¬
cal freedom are the test of Ameri¬

Interior,

can

and

nounced
would

that

immediately
an¬
L. Chapman

Oscar

citizenship,
concerned

nominated Undersecre¬

certain trends in

Mr.

Chapman,
who
has
Acting Secretary since

sonal

served

the resignation of Harold L. Ickes,
has been an Assistant
Secretary
almost

years,

Associated

was

Press

Washington

noted

advices

announce

the

nomination

of Mr.

Chapman to the post vacant
since Abe Fortas
resigned to enter
The

Senate

firmed ' the

March

nomination

con¬

Mr.

Krug by President
Feb. 26, was noted in

issue of

the

March
Senate

responsibility and Christian

First of all, we are placing

creasing emphasis upon big
ernment and

page

1270.

in¬

confirmation

The

iricl"eari?ijdy/t6
States

look "in¬

passers—and that is not good
\

citi¬

because"'* we:' "depend
centralized government, we
losing our American genius

for

Krug

was.

appointment.
Mr.
formerly Chairman of

the War Production Board.

trends

govern¬
are at war

Christian

philosophy.

are

voluntary action in achieving

social
person
i

worked

from

the

ground up.

And because it worked like

because it

was

that,

motivated by the

stirring evangelism'4ot\ then dike
St.

Paul, the ethics of Christian¬

This nation needs to learn anew

ity and the ideals of political free¬
that there can be no moral growth dom have influenced the world
for almost two thousand years!
without individual responsibility.
~
We

remember

also that
It must be like that, again. The,
in - human nature Christian church must come' to
can neither be legislated nor di¬
grips once more with the personal
rected.
It must spring from the lives of individual men and wom¬
soul of the individual.
en/It must cultivate in them
need

improvement

Class

the

anew

Antagonisms

virtues

and

thrift

self-dicipline, courage and love
This leads me to perhaps the of liberty,: benevolence, coopera¬
most serious evil in.American life tion and a general awareness of
and citizenship today.
I refer to human values/ When it does that,
the breaking up of. society into citizenship
will J- be
something
segments or classes and the strug¬ more than a political v status.
It
gle between these minority groups will become fired with the zeal of
for supreme power.
tration

The concen¬ Christian

of power

in any segment
society—be it labor,, or
management or government—is a
perversion of democracy ond a
denial of the Christian; faith. Yet,

our

this

very

have

idealism. Then

shall

the /moral \ renaissance

needed in

our

shall have

for

so /

troubled times. And,
a

reasonable hope

better* nation.and

better

world.'/-

rnoment'inr our na¬

life,',, -thfe ^struggle jfor,'su¬
premacy and this concentration of
power is destroying the national

in*

agriculture, .many .of ti.e, old
familiar forces/of selfishness
aire'onftarch;AnqL to

and

again

make •maIt^ra:wprko». w.e, find
$rnm®Tfc.; allying itself

this

;goyT

firsb-with

dresSufSponp^n0hef);;\vitl)

J. H. Moyle Dies
James H. Moyle,

Assistant Sec¬

retary of the Treasury during por¬
of - the - administrations
of /
Presidents Wilson and Franklin

tions

>D.

Roosevelt,/died at Salt Lake

City

Feb. 19)^He was 87 years

df .age.
AssoCiated Press
from Salt Lake City said:

advices
•

advantage. V/"Mr'; Moyle, who retired iti 1940,
was
United States Collector of
ours while we can" is
the slogan of the' hour.
That is Customs 1933-39 and in the Treasury
position 1917-21 and again
not Christian citizenship. - It is a
denial of the
Christian precept, 1939-40. While in the Treasury he
that the welfare of the individual was credited with originating the
that,
for
"Let's get

political'

•'

upoiy

the

spirit

the

gov¬

creasingly to the Feder^l:;Government.
There is a tendency of dis¬
quieting proportions .'fo 'Sybid rt»sponsiblity/ "Let the Government r
do it." is the growing
philosonhy
of our times.
In short, we are be¬
coming a nation of chronic buckzenship.
Second;

collectivism

tional

authorityiw?:Lo£aj

government looks
States.

with

inevitable fruits of

-the

the centralization of

governmental
the

are

Dangers of Big Government

Krug as Secretary of the Interior,
succeeding Mr. Ickes.
The nomi¬
of

national life

idealism.

18, which
reported Mr. Krug as saying that
President Truman had authorized

our

today which militate against per¬

from

March

have much to
There are

about.

tary.

him

the ; growth

and

who wrote those words

No, Christianity cannot

ommend

•

health, to
safeguards

against the hazards of unemploy¬
ment, to promote public welfare
programs
of many .kinds.
But
anyone who dares to suggest that

evil dialectic.

citizenship in a republic,
need only to look at its antith¬

Senate Committe on Public
Lands voted -unanimously to rec¬

and

nation's

adequate

being only by sufferance of a
sovereign authority over which he

Having been forced to fight for
military victory, they sometimes
think that whatever they want
should' be taken by force instead
of making their claims the basis
for peaceful negotiation.

the

dignity

the

;

ly pointed out that betteri results
in
.food
conservation
were
achieved in the first World War

jpeace and freedom.

Before

loose in the'world today. But the
currents of life cannot be stopped
in

have

to live and work for the fruits of

our

•:.//;
powerful currents
.

are

another.

They forget that victory in war
only give the opportunity
that would otherwise be denied,

Truman

There

inclined to give

can

conciliation

and

man.

improve
provide

society,

such as have pre¬
vailed
and
yet prevail
in our
generation; are a direct negation
of
the
Christian
principle. In
Italy under Mussolini, in Ger¬
many under Hitler, in Japan un¬
der Togo, and in Russian today
under Stalin, the individual man
is nothing.
He exists oqly as
a
tool of the all-powerful state.

spirit

the

upon

appreciate the

cance

•

nation

Those who

those

tory except the millennium and
feel that they should have the
fruits of victory without further
effort.
*
'

approach

will.. ',.■

Disillusionment

comes a

world, although they are
serious, can be solved if all of us
difficulties

free

American system was

government,

private law practice.

note,„ I firmly believe
difficulties confronting

worth of

esis.

might makes right.

emphasis

not the master of
reason
and to reject the ancient
and
'discredited. doctrine
that

the path to

peaces

intended to be, is the perfect po¬
litical expression of the Christian

the test of progress.

Indeed,
our

servant;rand

oc¬

military strength

our

be used to

poses

Should

world.

The basic purpose of the United
Nations • is to
make
force
the

After ; every

"*If we need fear

to advance Christian ideals in the

force

not

capacity'

a ;■ phenomenal

withstand

and

such

be progress

can

4: i

gave meaning and
democracy and selfgovernment. The struggle of men
to achieve political freedom was
part and parcel of their struggle

international
without

by armies.; In

of social re¬

that

culture

impetus

The important thing to remem¬
is that a war of ideas is not

won

1499)

page

measure

; It was the release of these prin¬
ciples into the stream of western

ber

life there

the

sponsibility.

thrilling today as it was yesterday.
Jn a conflict of ideas we. can be
supremely confident of victory.

men

vigorous contest be¬
tween our conception of democ¬
racy and other political faiths.
The voice of
democracy is as

war

say, as some do, that a period
military training will turn our
spirited and independent young

fear

reason

and

open

train¬

can

There is

Thursday, March 21, 194^

group

is Insen&rable from' the

welfare of all citizens.-

Let

not

forget that the initiative, the re¬
sourcefulness J, and v the
self-re-

idea
per

•

•"

/,:
/

reducing the size of pa¬

currency.

•

;"A business man in addition ^

his political career,

Mr; Moyle was

JVolume 163

COMMERCIAL & FINANCIAL CHRONICLE

THE

Number 4474

"■"

•

■

•

•—••

Calendar
of March

Details—See issue

List

ago,

which

la normal

filed less' than twenty

were

grouped according to dates
registration statements will
course

become effective, un¬

the

less accelerated at the discretion of

SEC.

the

liabilities

Pursuant

the

plan

Texas

company.

reorganization,

the Texas company will distribute on a
share for share basis to the holders of its

fig: SATURDAY, MARCH 23
i

which the Texas
has received and the Texas com¬
pany will be dissolved.
The company is
offering to the holders of its common stock
all of the preferred stock on the basis of
one
share preferred for each 3 shares of
common
at $9 per share.
The company
has agreed with Kdbbe, Gearhart & Co.,
Inc., and Newburger & Hano to rsell to
them that portion of the offering which
may not be subscribed for by the com¬
pany's common stockholders.
The public
offering price is given as $10 per share. ;
Underwriters—Kobbe, Gearhart & Co.,
in the Delaware company

RUBBER CO. on March 4

SEIBERLING

filed

company

statement for 35,000
Shares of cumulative prior preferred stock,
$100 par.
The dividend rate will be filed
by amendment.
; Detaiis---6ee' issue of March 7.
■" / ; <
Offering—rhe company is offering the
holders of the 14,756 outstanding shares
of its $2.50 cumulative convertible
prior

registration

stock

preference

right

the

such shares for shares of
S lerred on the basis of two

exchange

prior

new

pre-

shares of prior

preference for one share of prior preferred
Plus a cash adjustment.
Any shares of
old
preference stock not exchanged will
■I be called by the company for redemption.
The underwriters will purchase from the
company any of the 7,378 shares of new

which

will

offered

the

March 4 filed

CO,,

pub¬

LTD.,

registration statement for
<!
;

Offering—The price
per share.

"
371

Underwriters—Mark

public >

the

to
.

Daniels,

Bay

7 filed a

178,364

Canada, holds an option
of capital stock of the
plan of distribution is to
allot the stock optioned by him to differ¬
ent American brokers and allow them a
commission for selling of 25ft.

CO.

MANUFACTURING

EATON
March

Underwriters

INC., on March

97,350

A filed a registration statement for

Chares of common stock, par $5 per share.
Details—Seeissue of March 7.;

offering to issue
3 97,350 shares of its common stock, par $5
per share, to all of the stockholders of
Mid-Continent Airlines, Inc., in exchange
for the common stock of Mid-Continent
fn the ratio of one share of common stock
:;i of American for each four shares of common
Stock, of the par value of $1 per share,
1;

-l Offering—American

Mid-Continent;
r .'v,i
"J
Underwriting—None earned.
•

U fj.-'S',-'.-'*■.: .•■■v'V'j

filed

HJl.

four

Offering—Price

the public

March

BLISS

$2.25

CO.

<•

■ *

March

for

filed

registration

statement

price

Offering—The

the public will

be filed by amendment*
;4. <
4
Underwriters—The underwriting
groups
for both the preferred and common stocks
are
headed by
Paine, Webber,
Jackson
&

Curtis, and Harriman Ripley & Co., Inc.

ING

of March

Details—Bee issue

Offering—The

Underwriters

company

LION OIL CO.; on
istration
common

the

common

eleven shares held,

WILSON, BROTHERS on March 8 filed
a
registration statement for 60,000 shares
5ft
cumulative preferred stock, $25 par,
with non-detachable warrants, and 120,000
shares of common, $1 par.
Of the total
shares covered 13,266 preferred and 20,000
common
are being
sold by a stockholder.

the pre¬
offering
filed by

headed

14.

: Offering—The price to the public will be
filed by amendment. '<.
vh

•

by Hemphill, Noyes Ss Co.

group

issue

March 8 filed

of common stock, with¬
»
" i

Details—Bee issue of March

Offering—The

March 6 filed

stock

14.

is offering

the

folders of its common stock
td1 be filed by amendment at

price

company

the

the rate of onS'bhare of new common

offered

to the

price

proceeds

from

the

sale

proceeds from sale
for

general corporate purposes^ to main¬
larger bank balances,. to reduce. the
for bank borrowing, to .carry
inventories, and receivables, etc.
Proceeds
from the sale of 110,COO common shares
tain

necessity

will be received by

holders.

at $107

share,

respectively.

miums

Sachs

charged

of $381,345

capital

onr

surplus.
proceeds, from

The

re¬

sale

the

preferred shares and the

net proceeds from the sale of the common
shares are to be applied to the company's

4 4

public

the

installation

additional

making

paper

underwriting

group

Beane.

by Drexel & Co., Smith, Barney
and Merrill Lynch, Pierce, Fenner
,

' 4
-4
will

PENINSULAR TELEPHONE CO. has filed

and

AMERICAN AIR FILTER CO., INC., has
a
registration statement for 101,086

shares of common stock, par $1 per share.
The shares are issued and

outstanding and
being sold by certain stockholders.

Organ¬
26,

Central

Business—Air

Avenue, Louisville,

filters.

Offering —. The price to the public is
$13.75 per share.
Proceeds—The proceeds go to the selling

„

stockholders..

Underwriters—The

Offering — Holders of the oustandihg
100,000 shares of $1.40 cumulative1 • pre¬
ferred Class A, par $25, ^ of the close of
business April 3,
1946,
are
offered the

privilege to exchange 80 ft of their hold¬
ings for the $1 cumulative preferred stock
on a share for share basis/plus a payment

filed

S-l

(3-13-46).

Wash.
W Business—Trans-Pacific

shares
;

for

the

basis

49,602

stock at

The com¬

wider

Miami

the

unexchanged

CARDIFF FLUORITE MINES, LTD. ton
registration statement.for
250,000 shares of common stock, par M* :
Details—See issue df'March 14.
;
1 *

•4 March 6 filed a

Offering—The price fto the public is 6b
cents a share, Can^diaa funds.
Arrange)*
snents have been made with the registrant
to sell 500,000 shared at 40 cents per share
to net the company's treasury $200,000.) It
is intended that 250,000 of these shares
Bhall be offered in the United States and

Proceeds—The

$40,000,

per

with

share to net the treasury

the

understanding

that he

later purchase an additional 400,000
shares at the same price or 40 cents per

Will

Avenue,

Rochester, N.

Hunt, 42 East
Y. will handle the

Issue in the United States.
GLORE
.

filed

AIRCRAFT

CORP.

March

registration -statement for
of

5% ft

cumulative

150,000

convertible

preferred stock, par $10 per share.

preferred stock

of the

outstanding,

BUFFALO

FORGE

a\reg-

has filed

ro.

statement for 60,000 shares^ of
stock, par $1.
The shares are
issued and outstanding and are being'sold
by two stockholders.
</:> ';
common

Address-—490

N> Y.

Broadway, Buffalo,

Business—Engipeerine, manufacture and
of ventilating, heating and air con¬
ditioning (equipment,
etc., ( Centrifugal
pumps, machine tools, etc.
' '
/'/■-■ i
:
Offering—The price to the public will be
filed by amendment.
,
•v'
Proceeds—The proceeds will go
to? .the

sale

(Continued

stock

1538),^

on page

DIVIDEND NOTICES

company

Safeway Stores, Incorporated
Preferred arid Cotamm

.will use the net

u-Stock Divideftdo-

Director's of

ated,

The

Safeway Stores, Incorpor¬
March 4, 194 6, d e cl a ted

Ccnt/uMpq

quarterly dividends of 25c per share, on
the Company's $5 Par Value Commori
Stock payable April 1, 1946,;to

Meeting

holders of such stock of record at'the

$20,60 /per

aoniait

Annual

The

Francisco.-

•

CO.

SMITH

March 12 filed

SONS

ferred

stock,

$100,
stock,

and

par

by amendment.
; Details—See
issue of March 114.44/-.4
Offering — The offering prices to the
public will be filed by amendment.
,

Underwriters

—

The

underwriters

Brothers

and

Smith,

Barney

to'holders of such stock of

;

The stock transfer books will
be closed.

„

'■*

The Borden
4

THEODORE D.

I$46.

MILTON L. SELBY, Secretary;

■

PACIFIC GAS AND ELECTRIC CO.
DIVIDEND NOTICE

not ?

Common Stock Dividend ^o. 121

Company

WAIBEL, Secretary

A cash dividend declared by the Boaid
of Directors on Match 13, 1946, for

first quarter of the year

GOLD
MINES,
12 filed, a; registration
250,000 shares of common
stock..;/44:;;:?:54"4/
1. ■ 4 4/-;
Details-rrBee. issue of March 14. "--v
?
Offering—Price to the public is 50 cents
per»share:;)!i;>)iit'"'- */•• :■ '.-4v,;
4:
On

record'

March 4,7946.

are:

Morgan Stanley & Co.; Dominick & Dominick; Harriman Ripley & Co., Inc.; Gold¬
man, Sachs & Co.; Kidder, Peabody & Co.;
Lehman

Wednesday, April 17,1;

County, NeW/Jersey, - ;
i
Only stockholders of record at
the close of business on Tuesday,,
March 19. 19'46, will be entitled to
vote at said meeting, notwithstand';
ing any subsequent transfers of stock.

156,3l2J/2
$20.
The
the preferred will be filed
'
>,,*

par

common

i^nd

$1.25 per share on the Company's* 5%
Preferred Stock, payable April 1, 1946,
the close of business March 19,

registration state¬

(Eastern Standard Time) at 43 Park /
Avenue,
Flemington,
Hunterdon 4

CARPET

for 50,000 shares of-cumulative pre¬

ment

close of business March 19,1946,"

meeting of

1946, at 11:00 o'clock a.m.

SUNDAY, MARCH 31
ALEXANDER

annu'al

stockholders will be held
4

PORCUPINE

Noble and

;4 Vv
The

•

MANUFACTURING COMPANY
West Streets ; 4

AMERICAN

March

for

Board

Directors

York
of

the

:.
American

Manufacturing Company has declared a divi¬
of 25c per share on the Common Stock,
payable April 1, 1946 to Stockholders of Record
at

the close

business

March

11.

1946.

1946, equal
.
2% of its par value, will be paid upon, /
the Common Capital Stock of this Cotri-' ; - r
pany by check oh April 15, 1946, tn; /) ]
shareholders of record at the close of /'v
Business on March 29, 1946. The TransV'/
,

Brooklyn,; New

4 '

dend

fer Books will

not

be closed.

The

•

Beckett, Treasurct.■;■

record, books will be closed for the pur¬
pose of transfer of Common Stock at the close
of business March 11, 1946 until March 27, 1946.
4
4~ v-ROBERT B.- BROWN, TreaaureriT
stock

San Francisco, California

■

•/•

underwriting) f,group
Smith,,, Barney,&,tqp.,. Mcj-

JUndetwrlters—The

ist headed

Donal^ A; Co, and Bl|i61ds & Co,

4, ' rij

THURSDAY, MARCH 28
INDIANAPOLIS
on

March

filed

POWER
a

LIGHT

for

120,000 shares of 4ft
ferred stock, par $100.

cumulative pre¬

preferred stock, without

and 67.065 shares'
out

par

value.

of comomn.

The dividend

''Dividend; Notice'of
THE

cumu¬

value,
stock, with¬
par

rate

for the 120,000

shares of 4%

preferred and in the event
of - over-subseription,
the - 120,008 shares
of new preferrred will be allocated on a

the exchange carrying

Its

paper.

pulp

subsidiaries

,v--»

The Board of

;■

Directors of

March

l5,1946.

Burroughs!

the Arundel Cor-

the

preferred will be filed by amendment.
Address
Front
&
Mafket
Streets,
Chester,- Pa.' /-44
Business—Toilet tissue, paper towels and
wax

CORPORATION
Baltimore, Md.

ARUNDEL

par

and

facial

manufacture

and Marinette Paper Co. also
toilet tissue, paper ; towels

UNITED

tissue.

SHOE / .machinery

A dividend of fifteen

of ' common

for

each

cent9

has

been

stock

BURROUGHS

declared

($015)

ADDING

MACHINE COMPANY, payable

de¬

5, 1946, to shareholders of record

the

WALLACE, M. KEMP, Treasurer.

June

the close of business April 26, 1946.

Detroit, Michigan,
March 19, 1946

the

upon

de¬
the

Common-capital stock.
The dividends on both
preferred and Common-stock are payable Aoril
April 1, 1946, the right to subscribe to the 4
5, 1946, to stockholders of record at the dose
67,065 common shares on the basis of one , of business.March 19, 1946.
share

DIVIDEND

CORPOHATI^

The Directors of this Corporation have
clared a dividend of 37^d per share on
Preferred capital stock.. They have also
clared a dividend of 62'Art per share on

Offering—The offering price of the pre¬
will be filed by amendment.
The
company is offering to the holders of its
common
stock at the close of business

ferred

additional

179th CONSECUTIVE CASH

outstanding, payable on and after April
1, 1946, to the stockholders of record on the
corporation's books at the' close of business
March 20, 1946.
MARSHALL G. NORRIS, .Secretary.
and

manufactures

Offering—The company is offering to the
of its
140,591 shares of SVift
the opportunity

rata basis,

lative

wood

14.

holders

pro

tion statement fon :65,000 shares of.

—

CO.

registration statement

cumulative preferred stock
to exchange their shares

vr.

to. stock¬

retire all

•

Details—See issue of March

jsh&rc.
Underwriters—Frank. P,

to be used

iS(pitee i^hereby ghfh tbsjt the Board, of >

1^THOMPSON iPR^DUCTSb^NC,(on Morch,
8 filed a,registration statement,for 40,000
shiaVdS 4% cumulative' preferred Stock, $100.
i ^Underwritjers-tcMark. Daniels & Co., 371
pa)? Vdlue, And 75,000 shai<es W common
stock, I without, pariJfalue. tciib.TH). bV'j«
(Details—See issue of .March JL4^ r.;
r
rii
Awil
'
•
Offering—The' offermg prices to. the
iSCOTT>PtfHfc CO. has filed a registra¬
public 'wilb be; filfed' by'/amendmeht.:'4i lifij

250,000 of same offered in Canada.
F.i R.
Marshall has subscribed for 100,000 shares
at 40 cents

stock

common

istration

DIVIDEND NOTICES

Registration Statement No. 2-6218. Form
S-l.
(3.-11-46).
Originally filed in San

statement

of preferred i.and

VERITY

common shares are Morgan
Stanley & Co., Coggeshall & Hicks, G. H.
& Co., White, Weld & Co. t> v
Registration tSatemeiit No. 2-6224. .Form

wonien, etc.
v' > "/
;
Offering—The prices to' the public will

be filed by amendment.'

Proceeds—The; proceeds will be used by
the company to supplement its present
working, capital,.
,-:;v ,4;•
Underwriters—Blyth &' Co.,; Inc. 4

LTD.,

Detroit, heads the underwriting group.

sale

Walker

for

ttodi'thefeFirte^Boston Corp.

the

purchase
unsubscribed

•

Sachs'

basis

each five snares,
April 3,-1946,

who, will
the unexchanged preferredr'and

and

whereby, as Mr. Rey¬
agent,; they/; will offerto; persons
designated by him, all shares of unsub¬
scribed stock purchased by them from the
company plus, as Mr. Reynolds' agent, up
to
12,000 shares
of additional common
which
Mr.
Reynolds
agrees
to acquire
through exercise of his subscription rights.
Mr.-Reynolds

nolds'

The price to the, public
Share,*;:S'/;;;A/:;444^^

the

record

Underwriters—The underwriters

various types
wearing apparel/including men's shirts,
pajamas and shorts, sportswear for men

writers
with

Street, Chi¬
; • ;;

cago,

held

April 15,
stock, will
to addi-.

price to be filed by amendment.", . / >
net proceeds; to
be re¬
from the sale to underwriter's5 of

$1.40

common

Monroe

com¬

stock, and toward that end the under¬
have entered into an agreement

mon

West

expire

common

writers are

convertible preferred

and 4110,000

IU.
V» ' /
1 *
Business—Manufacture of

stockholder, R. J.
Beach, Fla., desire

distribution

$100,

Address—212

;

its principal

and

cumulative

will

the

A-2.;/(3-14-46)irAA/;/;:A/;

•

by the company and the
by certain stockholders.

per

par

Proceeds—The

from

common, par $5.
The dividend rate oh
the preferred stock will be filed by amend¬
ment.
The preferred stock is being sold

$20.60

48/100

of common held.

secure

aggregate

additional common

stock,

(

shipping."*-

right

additional share for

the

RELIANCE MANUFACTURING CO. has
a
registration statement for 30,000

Offering—The company is offering to
its common stockholders the; right to sub¬

holders and unsubscribed shares "to. under¬

•

and

the

common

include

underwriters

given

tional

filed

Seattle,

April

Holders

1946.
be

share to be filed' by amend¬
exchange privilege will com¬

per

The

stockholder

exchanging

amount

ment.

Building,

the

Equitable Securities Corp.,
Bankers Bond Co., W. E. Hutton &
Co.,
and Stein Bros. & Boyce.
V .:
Registration Statement No. 2-6222. Form

registration statement for 49,602 shares
of common stock, without par, Value.4 -

Tampa, Fla.

Business—-Telephone system.

Almstedt Bros.,

par value.
r
Address—610 Morgan Street,

ceived

filed

Co., Boston, Mass.
-=•"
■;
■
; 7
Registration Statement No4 2-6217, Form
S-5. (3-11-46).

Stuart

registration statement ror 80,000 shares
cumulative preferred stock, par, $25,
26,799 shares of common stocky no

of $1

;■

Address—215

Gorp.

APRII. 2

TUESDAY.

one

MONDAY, APRIL I

Securities

Registration Statement No. 2-6223. Form
S-l (12-13-46),
../
4>4;

mence

Co.,

;

LTD* has

power

Registration Statement No. 2-6221. Form
S-l. (3-12-46.)

Manager—Preston, Moss is

AMERICAN MALL LINE

the

headed

Underwriters—The

is
&

group

; 4

investment.

Co.

Offering—At market.

addition

the

finishing equipment at the Fort Ed¬
ward,
N." Y.,
plant
of
the
company's
wholly-owned subsidiary, Marinette Paper

Feb.

including

and

" '

company.

business

facilities,

plant
and
the
improvement
of
paper
making facilities at Chester, Pa., and the

a reg¬

14.

of March

plant

construction of

Co.
£

150,000

existing

heads the underwriting group.

books

the three selling stock¬

Underwriters—Union

in ex¬

the

earned

the

of the cumulative

1946.4
Proceeds—For

stated

against

mainder

I PRESTON MOSS FUND, INC., has filed
registration statement for 15,000 shares.
Address—24 Federal Street, Boston, Mass.

1 Investment

share and $107.50 per
The redemption pre¬

amount

company
applicable to thb; pre¬
shares
to
be
redeemed1 teill
be

ferred

March' 11 filed

commenced

per

the

and

cess

public will
' 4
4;;
4

Hppwood. 4.:

price

the cumulative preferred stock are to
applied in the amount of $8,411,460 to
the redemption of the 29,780 outstanding
$4.50 cumulative preferred shares and the
30,000 outstanding $4 cumulative preferred

(

will

underwriters

/ Proceeds—The

14.

the

Is headed by Blyth & Co.; Inc. ;

dividend rate

LIGHT CO.
registration statement

POWER &

INDIANAPOLIS
for 142,967 shares
out par value,

AMERICAN METAL PRODUCTS CO. on
a registration statement for
150,000 shares of common stock, $2 par.
4 The shares are issued and outstanding and
:
are being sold by five stockholders.
•
;• DetaUs—See issue of March 14. Psa'P/P
Offering—The price to the public Will
be filed by amendment.
/./ft Underwriters—Watling, Lerchen
8s Co.,

of March

be fjled. by amendment.
Underwriters—The
underwriting

14.

Offering—The offering price of
ferred is $25
per
share.
The
price of the common will be
amendment.
''
Underwriters—The underwriting

of .common

by the

filed by amendment.

sold by

being

without par value.

stock,

Details—See

Offering—The

50,000

offering

The

value.

par

are

for

statement

Reynolds,

The

group.

Underwriters—Smith, Barney & Co. and
Newhard, Cook & Co.. head the under¬
writing group*

and

Goldman,

—

for each share

at $14
unsubscribed shares will
underwriters and sold to * the
public at $14- per share. ,
Underwriters—Herrick, Waddell & Co.,
Inc., New York, heads the underwirting

p chares of capital stock, par $1 per share.

MONDAY, MARCH 25

without

issued

and Piper, Jaffray &

to its common
stockholders in the ratio of five, additional
shares

50,000

CLINTON INDUSTRIES, INC., on March
4 6 filed a registration statement for 100,000

shares,

are

registration

indeterminate number of

certain stockholders.

will

14.'^^^;

program of improvements and additions to

March 11 filed

common

•

Details—Bee issue of March

CO.

statement for

shares of common stock, par $5 per share.

Details—See issue of March

scribe

for

the

MINNESOTA MINING & MANUFACTUR¬

CASUALTY CO. on March 8

PEERLESS
filed

effect

Co., San Francisco, Cal.

pany

per share.
be sold to

price

offered

are

The offering price fluc¬

Underwriters—North American Securities

Details—Bee issue of March
•

the sale.

shares.

14.

the public
J
Co.

statement

tuates from day to day in accordance with
the changes in the net. asset value of the

WEDNESDAY, MARCH 27

HOLLINGS WORTH

registration

Offering—Shares
public offering

time of

444>,

Underwriters—Allen. &

shares for each

WHITNEY CO.
on March 6 filed a registration statement
for 42,000 shares of $4 cumulative pre¬
ferred, without par value, and 12,594 shares
;cf common, without par value." -,
- ^

filed

the

price

100,000 shares

filed by amendment.

public

price to
The unsubscribed
at

for 100,000 shares of capital stock, $1 par
' - • ■
•'
■4:-4, ..
4;:" > - -4
Details—See issue of March 14.

each

for

of March

Details—See issue

(

SUNDAY, MARCH 24

1 f

value.

convertible preferred stock, With¬

out-pat Value,

Building, Detroit, and tyexcier,
McDowell & Dolpbyn, Buhl Building, De-

held

statement

registration

ji^UnderwriterS—S.R,:Living6tone&Co,,

;

new

Offering—The price to
filed 4 b^ 4 amendment.

Penobscot

Address—740

jtroit.

one

common

$4,375

COMMONWEALTH INVESTMENT CO. on

group.

registration statement for 200,000

to
be filed by amendment.
The company is
selling the unsubscribed stock to under¬
writers who will offer it to the public at
a price to be filed by amendment.
"
Vv;T
Underwriters — Merrill Lynch, Pierce,
Fenner & Beane heads the underwriting

rate

the

chares of common stock, par $1. :
c;
1 j«Details^--Seet issue of March;7./:<<■-$: tf-A

new

•

Brothers, Gold¬
the First Boston

and

SATURDAY, MARCH 30

ized

company is offering the
stock to holders of its common stock

Offering—The

INC., on March A

ELECTROMASTER,

Details—See issue of March ; 14.

His

AMERICAN AIRLINES,

Co.
'

Business—Investment

300,000

held

common

Street, Toronto,

(company.

sold

Lehman

—

Sachs &
Corporation,'

registration statement for
of common stock, par $4

and offered to the public at
to be filed by amendment. -

price

man,

statement

issue of March 7.

to cents

•

registration

preferred; will

new

underwriters
a

Details—See issue

BOO,000 shares of capital stock. ;
Details—Gee

G. LeTOURNEAU, INC.,

ance

Offering—The price to
be filed by amendment.

March 7
for 50,000
shares of $4 cumulative preferred stock,
without par value.
- ;
"
f
,DetaUs—Bee issue of March 14.
Offering—The price to the public will
be filed by amendment.
4 4.-4
•.
/'
Underwriters — The underwriting group
includes Alex. Brown & Sons, Dean Witter
Co., F.S. Moseley & Co., Kebbon, McCormick & Co. and Shields & Co.
B.

filed

She., heads the Underwriting group. ;:; j
MINING

-'4

& Hano.

TUESDAY, MARCH 26

lic at a price to be filed by amendment. i;;
Underwriters—E.
H.
Rollins
&
Sons,

GARTHACK

and Newburger

Inc.,

preferred as are not issued on, the ex¬
change, as well; as; the remaining 27,622
ehares

stock the shares of common stock

common

J $37
'

■

—-•

twelve

days

•——

14.

pose

whose •/ registration

Issues

statements

•'

•

—'

of New SeaurifyFhotatioiIIS

Offering—Corporation was organized in
Delaware, on Feb. 23, 1946, for the pur¬
of acquiring all of the assets of the
Globe Aircraft Corp.
(Texas).
Pursuant
to a plan of reorganization the company
acquired all of the assets Of the Texas
company and in consideration therefor is¬
sued to the Texas company 450,000 shares
of its common stock/and agreed to assume

^ NEW FILINGS

■

at
.

Geo. W. JEvans,

Secretary,

J!/

7ZZZZ7Z?!ZZ7«Z:ZZ7:::"7iZZ;Z^^

:*/.f7;

XHE eQMMEReiAL; & FINANCIAL CHRONICLE

* ■

CahmkirofMem^S^
ferred! which: is

(Continued from page 153T>

of? no> par valuer

will

z/4; z/1:/>//
stockholders'. Tho selling, stock¬
Address—1700 South Second Street,. St.
Henry W. Wendfc; Chairman,,
Louis, Ma
■
z. ■■(■;=/'
F. Wendti President, and! Treas¬
Business—Manufacture of. widely diversif
urer, who are selling 30,000, shares each. .
fied line of chemical, products.
Z/4v/;Z
Underwriters—Hornhlower &? Weeks head
Offering1—The 316,967. shares, of new
the underwriting group:
'1 :
preference- stools are,- being offered; by the
Registration Statement Ho. 2*6225. Form
company to holders i of Its common: stock
A-2. (3-14*461,
/}.//■! z4}/;:i/4 ■ ' on, the: basis. of- one
share.: of; preference
.filed; by amendment.

two selling

holders

25,000 shares* of common; par $1. The
j common shares are being sold, by certain
.stockholders*

ft IRON CORP; has
registration statement:, for 279,000
stock, without? par value.
The shares are issued. an«l are being sold by
certain, stockholders.
Address—Continental Oil Building, DenCOLORADO. FUEL

filed* a

shares of common

•'«*...•'

!ver, Colo. //'

Business—Manufacture and sale of; steel

corporations, headed1 by Allen- As Co.,
22, 1944, acquired from Rocke¬
feller Center, Inc., and John D.
Rocke¬
feller, Jr., 283,980 shares (or 50.3% )• of
the then outstanding
stock of Colorado,
at the purchase price of. $15 per share.
The common stock on? Oct. 22, 1945, was
converted into two share of common stock
of Colorado.
The shares offered are part
of' the
presently
authorized' shares of
common after the "split, up" on the basis
of- two for one.
•zZ;
Underwriters—There ls: no underwriting
agreement.
The share of common stock
will, be sold from time to time at the
prices then; current on- the New York,
Stock Exchange or the other stock
ex¬
changes on which the stock is listed; The
statement, said one or more-"special offer¬
ings" of the shares may be made en the
exchanges,.' ■:.//
Z;Z;:;ZZ
Registration-Statement NO. 2-6226. Form
Dec.

tfhlyersity

Business—Manufacture

Avenue,

electric

ap¬

pliances.
•,
Offering—The prices .ojf;; the : preferred
and

stocks, to

common

the public

will be

filed by amendment.
Proceeds—The company will use the pro¬
ceeds from, the sale of the preferred stock

ARO

to reimburse it
for capital expenditures
and to,, be made for machinery and
equipment, and to increase working capital.
The proceeds from
sale of the common,
will go to the selling stockholder.
Underwriters—Burr dp Co., Inc., heads
the underwriting group.
: Z*zz
Registration Statement No. 2-6231. Form
Sri- (3-15r46)*
1 0 :,*.
- 4 ,,y;/

-made

amendment.

the

reimburse

for ex¬
and1 equipment

company-

machinery

penditures

for

made since

the close of its last fiscal year

approximately

aggregating
will

and

$150,000,

acquisition
carrying of Inventories, purchase of
be

also

the

for

available

machinery and other equipment, etc;
f
Underwriters—The
underwriting
group
Is

headed

Central .Republic. Co.,

and Reynolds

Inc.,

& Co.

Registration Statement No. 2-6227. Form
8-1. (3-14-46).
4
' • :

INC.
has
filed a registration statement for 400,000
shares of common stock,
par
$5..
The
shares are Issued and are being, sold; by
PUBLICKER

INDUSTRIES,

stockholders.

certain

-•

SDALLAS

CO.
Details—See issue of: Feb; 14,,
registration. 'statement <..Businessr—Mining.*••*.-*,*; *„

for 10,000. shares of common>

stock, par $1.
The shares are issued and are being sold
by certain stockholders;1 * *** v> «'
j
.

Details—Bee issue

of March 7.

Offeringr-Tha

;

Offering—The price to the public will
by amendment.-*'•;•
!
/Underwriters—G. H. Walker & Co., St.

commlsion

'■

....

Details—See issue of* Nov.: 22/

held of. record

.filed a

Co.,

Inc.,

York, is named principal underwriter,
;

CHAIN

INVESTMENT

15,000

registration statement

for

140,000

being, sold by certain stockholders.
Details—See Issue of March 7.
*

public? will1.

Underwriters—The underwriters

are

First

Colony .Corp.;
Simons, .Unburn
& Co.,
Inc.; Courts & Co.; Johnston, Lemon &
Co.; Irving J. Rice & Co.; Ira^Haupt St cp./
and.Cobum Ss Middlebrook.

Jan.

„

MANUFACTURING!

DOYLE

CORF,

oil

filed a registration statement fpr
shares of 60-cent cumulative con¬
vertible preferred stock, series A, par $8,r
and 100,000 shares of common^ par $1. Tpe

50,000

common

upon

New

basis

are

reserved

for

Issuance:

conyersiom of; the'preferred
of

two

the

on.

common

one

share; of preferred, (
«
-' ** j
.
Details—See* issue" of Jan.
Offering—The offering price of the pre¬
ferred will be $10 per*, share; *./
**
*

CORE.

Feh.8 filed - a -registration-statement for

v.ertible

/,■

STORE'

travel¬

of
common
stock, par $1.
Theshares are isued and outstanding and are

<fe

additional

Offering-f-The* price to. the public- will
be filed: by amendment. * * •.
Underwriters—Burr

and

DISTRICT THEATRES CORP. on Feb. 26

Nov. 13 filed a registration state¬
1,000,000 shares of common stock.

$1..

par

30%

allowance to cover advertising and

ing expenses;/:/

CAROT/YELtOWKNIFE/ GOLDrMINEi;

LTD.,, on
ment lor

at a price-of 50
share are .offered ast a speculation.
Underwriter—Mkrk;; Daniels, 1840 Mor¬
ris: Building?. Philadelphia, Pa.* and 371 Z
Bay Street, is. named underwriter, wijth

■ r

-A'y /

shares are- of- "
cents per share.:/

300,00(1

fered

be filed

.^Ui4/piinciBaL"uhderif^ter*<*,

These

exceed

•

ment

;

BURKART* MANUFACTURING

Feb., 28, filed a

its

(3r 19-46)r

YELLOW KNIFE GOLD MINES,/

LTD., on Feb. 8 filed a registration stajefor 3O0,.OOO :shares. of capital stock,

Co.,

shares of 41/a%
cumulative-con*preferred
stock,,
pa?
$50
and

Underwriters—Burr

«Sc

Co.,

principal; uuderwriter;/;,/

100,000. shares of-common, par 10 cents; iZ
Details—See issue of: Feb, 14,
:
/

Inc.

named

CENTRAL MAINE. POWER CO. has filed
registration, statement for- 220,000; shares
preferred, stock, $100 par value.
The.
dividend rate will be filed by amendment,

;
'

13,000* shares of 4Vz%
cumulative .convertible preferred /will be
offered* to" the public by underwriters at
it price to- be filed by amendment*.
The

DATES OF OFFERING

Address—9 Green

UNDETERMINED

Street,., Augusta, Maine.

/
Offering—The-company will offer to the
holders, of its 7% preferred, $0.; preferred:
and 5.% $50 preferred, stock the right, to
exchange such stock, on. the basis of one
share of new preferred' for each $100 par
value of. old preferred, plus a cash; adjust¬
ment.
All outstanding' shares oft. old pre¬
ferred not exchanged will: be called, for
redemption on July !, 1946. The balance
of the new preferred stock will bo sold
to underwriters,
to. be selected; by com¬
petitive bidding; for resale to the. public:
The/offering price to the public will be
filed by amendment.
*
Proceeds—The proceeds will be used to
refinance -outstanding
preferred -stock. ;
Busines—Public

utility.

ZZzZ/;

present below a list of Issuee
whose registration statements wem filed
twenty days or more* ago, but whose;

mined, ot

;

dates* have/ not.
are

4/y *

ALABAMA POWER COMPANY on Feb. 8
filed; a registration: statement? for,300,000
shares of 4.20%

CO., INC., on Feb.
registration statement for 225,-

to the
public through' -underwriters? > and
lOO.OOO-^ehares^of^'Common- stock - are t in¬
5Q,000
shares
are
offered
to
warrant
itially being- offered- by -the - corporation • holders.'■«
feA .- C*/. -y * :,
for subscription, by. its. present., commoh
'DetailsL-See issur Of'Feb/ 27/
*
*
stockholders at a. price- to? be- filed
by
Otrering—The price to? the' public on the}/
amendment.
The unsubscribed balance of
L75,000 shares offered? is* $4.60^ a share.
/
cbmmon will, be offered; te tbe public by *
Underwriters—Bond & Goodwin, Inc., is
underwriters at a. price to ba filed, by
named principalunderwriter.
* '' ' *
f .
amendment.* ., The common, stock will be
Registration Statement N6. 2-6187. Form
.offered* to present common stockholders at
S-l. (2-28-46).
a
price of 50 cents per share under the
.

been* deter*

unknown to ns.

23 filed

000- shares of common' stock, par $1*.
Of
the total 175,000 sharer are being offered

offering

PRODUCTS

DRUG

K*Offering-i-The

of*

will be added to working cap¬

the balance

ital

SATURDAY, APRIL 6

net proceeds

the

Gearhart

par-.,$l.
F;

Registration Statement No. 2-6236, Form
S^l.

approxi¬
mately $1,620,000 will be used: for the. re¬
demption of the 30,000 cumulative pre¬
ferred shares, 5%* convertible series, and
Proceeds—Of

.market,

Inc.^is/nametL-princlpol underwriter.

$750,000; in partial
present borrowings under,
a bank loan agreement providing a. $4,000,000 bank credit for the period ending Dec.
31,. 1948.
Underwriter—First Boston
Corporation:
is named principal underwriter/1
;;

lubricating equipment and: of port¬
pneumatic tools.
**■:,'■ +
Offering—The prices to,, the public Will

able

be filed by

Offerlng-^The shares will: be sold in the

tJnderwrifer's—-Kobbe,

amount not

reduction

pressure

;

EQUIPMENT CORP. has filed a
registration, statement for 30,000 shares, of
cumulative preferred
stocks 4&% series;
par $50, and 20,000 shares of. common, par
$2.50 per share. ■/ ■'■*•'• «z.-/Z
■' ■■ A
Address—Enterprise an<L Trevill; Streets,
Bryan, Ohio.
*<
Business—Manufacturer. of high, and low

1700

Address.—

Rochester, - N;: Y

registration: statement?

on
April 8, 1946, at a price to be filed
Offering—The price to the public is 30
by .amendment.: * Price to,, the. publid: will cents.per. share,; /* :'• v- -/ /■'*'/ T'' f
Underwriters—John
William
be filed by amendment.
Langs
if
'/ - , >
4 f
named principal underwriter
Proceeds—^The net proceeds will be ap¬
;
plied in part to the redemption of. 3,124 /"Registration Statement withdrawn Feb.
28.://-'/;/;;^^
shares of ey2% preferred at $102 per share
or
$318,648.- Other part of the proceeds *
L. E. CARPENTER & CO, on Feb. 21
will; be used for a, new cabinet shop build¬
filed a registration statement for, 129,242
ing $310,000.;
construction, of Rochester
shares of common stock, par $1 per share.
Radio City building and equipment $865,r
Of the total, 50,000 shares are being sold
000; for new transmitters $215,000 and
by the company, and the remaining 79,242
for loan to Fancher Furniture Co.* $175,shares are being sold: by certain stock¬
000.
The balance will be added? to work¬
ing capital.
The'company stated it may holders.-* Z;;/;.*''*//v:/-, -i'
apply a portion of the proceeds, in an itf. Details—See issue ofFeW 27;/ / 5

■

filed a

Underwrltero--8cottv Horner & Mason;; 25,000 shares of capital stock, par $*10* per r ;
:
.inc., Lynchburg; Va,, and Kirchofer and! share/:/ **;v
Details—See issue of Feb. 27; '
'
' L 1 *
Arnold; Incs, Raleigh; N. C., are the pr*in-<: :
olpal: underwriters* •, 1
'
i '
*
(
Offering—The /company/ has
granted-; m
holders of its capital stock rights to sub¬
jRENDIX HELICOPTER, INC., on: Feb. 13 scribe at $20 per share to the new stock*
filed a registration statement for 507,400
atrthe* rate of one-shara of new for-eaih
shares of common,;stock, par 50 cents. The
share held.,
The company, reserves the
shares are being sold for ;the account' of
right* to sell any unsubscribed?- stock at
the estates/Vincent' BendiX; deceased.
public or* private' salft at; $20 per' share, 1
Details—Bee' issue-of Feb. 20. * ;
;
f:
.Underwriters*—None- named, t
1

common

!*[-/

Offering—'The- price- of. tha preferred
the public is* $25 per-share/ and
of the common stock; $13.50* per share, i vg
stock to

;

each four shares of

39,305 shares of com¬
being sold by certain stockholders.:

Details—See Issue of March 7,

preferred will be filed; by amendment.
The 166,666 shares of common which con¬
stitute 5L4% of the? outstanding common
stock are being sold by Clark-Babbitt In¬
dustries,;'Inc.

;

Feb;

„

the

company,; and

mon are

the

INDUSTRIES,

30.000 shares

;

Underwriters—Paul
H.
Davis
&
Cp.,
the company
which/is own&i* by himr *
*
<
Chicago, is named! principal underwriter. /
Dajtaila-ZSee: issue* of Febi, 27;
i
r5* Offit r ihg/-The price to the public is $301
DALLAS TITLE & GUARANTY GO.

Feb. 26 filed

pre-

^tmtding,, common stock of

■

and

■f

for

registration state¬
common stock,
par: $5 Rer* share, The-stock is to he purchased: from W; Mi Bassett; President of
the company, and is a; portion of; the out>-

products. */r •/ ■1
' ■•*'■/1 '/ z/
•'
'.*• z
Offering—The price to the public ac¬
cording to the prospectus is-"At the mar¬
ket"—on the New York Stock/ Exchange
or
other exchanges on- which the stock
is listed.
' • :
Proceeds—The proceeds go to the selling
stockholders.
A group of persons, firms

(3-14-46).

s>*

Address—Gasklll Road, Lexington Town}4
ship, Alliance,. Ohio.^:
|
Business—Vitreous porcelain, enameled
-extra* deep, drawn: ste^; .stampings.
Offering—The prices to the public will.
be filed by amendment.
/ ; >
v; * vWj.
Proceeds+~The
company will: use v the
for each, four shares, of common held of
proceeds from sale' of the" preferred, stockrecord April. 8; at; a price to be filed* by
to redeem;
at the aggregate redemption
amendment?.
The rights will, expire 3 pim
price- of $105j000; plus? accrued dividends,
April, 24, 1946i
The offering price, to the the 1;0004 shares of 6% * preferred1* ; stock
and to pay $85,000 of notes.
puhlic of unsubscribed shares, purchased
The balance
,by the underwriters will, be filed: by amend¬ will be added* to* working capital,
The
ment. / •!
proceeds- from sale of the common stock
-ZZ/-.-v;■/
: z-j/./ /
Proceeds—Of the- net, proceeds, the com¬
Will go to the selling stockholders: »
./
pany will, use $22,675,000; to redeem; on/or / Underwriters—The pricipal underwriters
about June 1, 1946, its outstanding cumu¬ 'are Hayden,. Miller- & Co., Hawley, Shepard
&> Co. and Maynard H; Murch As Co.lative preferred, stock;, series* A. B, and C
*'
at; $110, $112.50 and; $105; per share? re
/ Registration Statement No. 2-6235. Form
spectively, with accrued, dividends.. The S-l. (3-19-46).
balance, of the net proceeds; will he added
to the cash funds of, the company, which
STRQMBERG.-CARLSON COMPANY, has
filed a registration: statement for 67,731
may be used; for expenditure for capital
additions, replacements and improvements shares of convertible preferred stock, par
$5(7.
to plants, processes; etc. - ."• * V
The dividend rate will! be filed by
*
' *
Underwriters — Smith,
i
*
;
Barney
& Co Amendment.
heads: the underwriting group.
Address—100*'Carlson Road;/ Rochester,
/'
Registration Statement No. 2-6230. Form
;
A-2. (3rl5-46);.
Business-—Manufacture of 'home ' radib
receiving sets, telephone switchboards, etc!,
t.
SAMSON UNITED CORPORATION has And* sound equipment;
Offering—The company, is offering to
filed a registration statement for* 125,000
the holders of its common stock pro rata
shares, of cumulative convertible- preferred
stock, par $8, and 166,666 shares of comr rights to subscribe to. the new preferred
on the basis of one share of preferred for
mon. stock, par $1.
The dividend rate on

S-l.

and*

are

and Edgar

cumulative- convertible

ferred stock, par $25, and 45,000 shares!of
common, par $5.. The preferred and 3,095
shares of. common are being offered! by

,-,4,.-;',

BASSETT*'FURNITURE
INC;,

ment

4 V2 %

y-: Details—See issue of March. 7.:
;; Underwriters—Blyth & Co., Inc., heads
4he underwriting group.

Thursday Match 21,;194S

■

preferred stuck, par $100,

public- offering price,
- *:.
\
}*;/
\
Underwriters — As
to
the
preferred,
EQUIPMENT FINANCE CORP. oh. Feb.
"
1
CHilds, Jeffries is Thorndlke,. Inc. and 25 filed a> registration statement for 13,877 is offering, the
H.;C: Walnwright & Co., and as to the shares, 4% cumulative series 2 preferred,
300,000. shkres; of new preferred in ex¬
common,^/First Colony Corp.* / .
,
par $100, and 28,159 shares of common,
change to the holders of its Outstanding
par1
// /;;
355,876 shares of old preferred, consisting ;
"I^SGQ MINE^/LTtf^ op Dec^YS/filed.
Details—See issue oft Fete ;27r
of: 159,575 shares $7 dividend stock, 170,a
registration statement
for
1,250,000
Of feringr—The price-to the public is $100
456 shares $6 and 25,845 shares $5 pre^shares of $1 par value stock, non-assessable.
per share for the preferred and $10 per
ferred, all without par Value, on the basis
Detallsr-See issue of Jan. 3-. t
share for the common stock.
The company Z
of one share of new preferred and $10 inZ Offering—The public,
.anticipates that*, all of the preferred, and ?
offering price
cash for each share of : $7 preferred, and
35 cents per share.
common will be sold to employes and of- *
one share of new preferred: for each share*
Underwriters—W;
R. Manning & Co;,
fleers of the company,, and. employes and z
of $8 and $5 preferred exchanged,
plus: Toronto, Ontario, Canada.
/*," -.
officers
of: Curtiss Candy and
its sub¬
cash dividend adjustments.
Any share hot
Registration statement withdrawn March 4.; sidiaries. In the event of a public offering, /
exchanged will be redeemed at $115 fdr
the company/ will file a. post-effectiye
the $7 and $105 for the $6: and $5 pre¬
t'.'ciTY* or Montreal; Canada on Fefr; amendment.
;
*
ferred. : if more than, 300,000; shares of
?4..registered $85,980,000 VA% to VA%
Underwriters—-The sale of the stotfk* will
old preferred are deposited for exchange:
debentures, dated Fete 1, 1946, to mature be made through.; the company's.- own
the company will allot shares up to 25
serially in various; amount? on Nov. 1 of, officers and emplqyees. / > ,^4 ;■ / ;> i/
shares. In full and pro: rate shares* de¬
each year 1947 through 1975. ,Z k , // /:
■;Z:; ://•;/: Z/7Z-/ r
•
posited by. a single holder in excess of 25
/
Details—See issue ot Feb. 7. ' ///:/ / :
GALVINy MANUFACTURING; CORK V oil
Off ering—The offering price to the pub¬
*
Feb. 27 filed a. registration-statement for
Holders of~ old stock desiring, to/ make
lic will' be tiled by ftmendttient;
*
'200,000 shares of -common stook (par- $3).
exchange are urged to deposit their shares
Underwriters—The principal underwrit-,
Of the
total;
120,000- shares are being
before. 3 p.m., April 5, with First, National
ers
are
Harrfman
Ripley: & Co.,
Inc.,
sold by certain stockholders. / v-./
Bank, New York or First, NationaL Bank Smith; BarneyCo.; First Boston. Corpo¬
^ «
Dctails^-See issue pf March 7.. 1 / :-*'//'
of Birrainghami, / . :
'
ration, Dominion Securities. Corporation,
Offering—Price to the public will' bo
Dealer-Manager—Merrill. Lynch, Fierce, Wood,
(flundy &>. Co., Inc., A. E. Ames & -filed by- amendment, Of the 80,000 shares ;
Fenner & Beane has been, named dealer.Cov Inc. and McLeod, Young,: Weir, Inc.;
to.be sold by. the company, 33,720 will be
4'
manager
to
obtain acceptances- of: the
first offered to
stockholders
who haveexchange offer.
CLAROSTAT MFG. CO., INC., on Feb.:
W
not, waived; their /preemptive rights,, atz a
14, filed, a registration, statepient^ for .240,- 'ratio of ope share of new for each 9 /: /:4'
AMERICAN
POTASH
&
CHEMICAL
000 shares of common1 stock/ par $1.
Of shards held.
The price to stockholders also 4
CORP.
on
Dec. 28 filed a
registration -the; total; 90,000- shares are
being* sold, by, wilt be filed by amendment.
•
? z
statement for- 478,194 shares of capital
stockholders.•
«>>nZrs'-'/v-?/}:r 'Z
Underwriters—Hlckey, & Co.,
Chicago,
stock; (no; par).
T£e shares are, issued and*
Details—See issue, of Feh, 20,
heads the- underwriting, group. '
///
outstanding and are* being soldi by/ the Z Offering—The offering price to the pub-*
—:v
Alien Property Custodian* when, directed the
lie.is $4.25 per share,, /,;•,,•*///}'*$.>■
i
GENERAL INSTRUMENT CORF, on
/
company to; file the1 registration statement.
Underwriters—B. G; Captor; <84 Co., New
n2& filed a registration statement?, for 6p,000.
Details—See issue of Jan/3/
York, - is named; principal, underwriter;;,^
shares- cumulative- convertible preferred,
Underwriters—rThe Alien Property Cua>cumulative from April 1; 1946.

Details^ee issue of Feb. 14.
Offering—-Tbe

company

Address—1429' Walnut.
.

Underwriters—The

Street, .Philadel-

writers

sf; Zv;Z

;'/*/

phia, Pa. *:/
Industrial

the

and

chemicals

production

Offering—The price to
amendment,
Publicker

the public

selling, stockholders*

will

360,000. shares

and

Registration Statement, No. 2*-6228. Form
Sri. (3-14-46).

;

of the under?*

amendment.

SATURDAY, APRIL 6
DODGE St. COX. FUND has filed a regis¬
statement for 17,500 shares. ZzZ}:

are

S. S.
Neuman, Walter J. Lehman and J. Maurice
Gray, trustees, under an agreement with
Harry Publicker and Rose Publicker, 40,000
shares, who will receive proceeds/*
Underwriters—The group is headed by
Merrill Lynch/Pierce, Fenner & Beane.

names

&L,^(3rl8r46)/

be filed by
Rose

be filed

alcoholic beverages.

and distribution of

Proceeds—The

will

Registration Statement No. 2-6232. Form

Business—Production and distribution of

tration

Address—17Q8

cisco,/CaL

Mills:

Tower,

Fran¬

San

•

Proceeds—For

' i-

investment.

Underwriters—Dodge & Cox, Mills Tower,
Francisco, Cal.,
are
designated as

San

principal underwriter.
/'
;:'/■
Registration Statement No. 2-6233. Form
S-5.

WEDNESDAY* APRIL 3

Business—Investment company*
Offering—At market.
:

(3-18-46).

■

://;k:';:" /!

BENGUET CONSOLIDATED MINING CO.

has filed a/registration statement for 702,302 shares, of capital stock, par.- value; one

equivalent In U. 6. currency to 50
per share.71 The shares; are issued
outstanding and are part of a total
of 852,302 shares purchased; by; Alien &
Co., from five stockholders;
Of the 852,302
shares; 150,000 were sold, privately at the
cost price to Allen & Co,
Purchase price

peso,

cents

and

to Allen

was

$2.10* per share,

Address—Myers

Building,

.■■■/.

Port

Area*

Manila, Philippine Islands,. and temporary
office at; office; of
counsel, Lucien H.
Mercier,
Metropolitan
Bank
Building,
Washington, D. C.
Business—Gold
mining.
There, have
»been no operations since December, l941i
excepting work begun in May and June
of 1945 and still in progress in! the clean¬
ing up- and restoration, of the^ properties
following the' expulsion of the Japanese.

Offering—The offering price will.be sup¬
plied by amendment.
;
!
Proceeds.—The proceeds go* to, the selling
..stockholder,;
,.;.*'/*
Underwriters

—

Allen

Co.

named

principal underwriter.
<3-15-46),

•

MONSANTO1 CHEMICAL, COMPANY has
filed, a registration* statement for 316;967.
shares-

cumulative

LITOGRAFICA

Lithographing Co.)
has filed a registration statement with the
Commission for 19,419 shares of 6%' cumu»
latiye convertible preferred, stock, par $25^
and
197,000 shares of common, par 10
cents.
All: of the
19,419; shares of pre¬
ferred* and4 162,000* shares of: the 197;000
common are. being purchased, by the under*
writers

from-

certain,

The

stockholders.

remaining: 35,000 shares of: common
being: purchased: from: the company.1 ;
Address—155 Ayesteran.
Street;,
Cuba.,
V

are

Hayana,

•

Off ering—Th©»

and

common

to.

;^
prices- of 5..the preferred
the

amendment.

Proceeds

—

puhlic- will

The- company

filed

wiltvuse. its

share: of the proceeds* in part to reimburse
for the' retirement, of "920 old * shares

-it

of:' IS. cumulative

preferred*, which have

called, for redemption, on. April. 15,
The- balance*.- of the* proceeds? will
be- used: to purchase new
equipment, and.
been

1946.

additional working capital,
Underwriters—Hirsch
Co.,, New

as-

York,

the principal underwriter:
Registration Statement No/2-6234, Form

SUNDAY, APRIL: T

preferences stock; ;
ALLIANCEWARE,, INC., has, filed a. reg»
series-A?,; convertible into:' common: before; istration, statement: for * 12;<X)0? shares,** of
June 1, 1(956.
The dividend: rate; on*, pre¬ $2.50 convertible preferred; stock; par? $50;

todian proposes to sell, the:, 478,194- shares

of
stock at 'public sale to; the^ highest
qualified bidder,
.
-v ,ta > u *
Bids will be received *at office" of ; the.
Custodian, 120. Broadway/ New York 5,
N. Y. before 11 a.m; EST on* March 27.

registration statement/for 40,000,
cumulative preferred stock,
par1 $100/
'/;*/.■';
Details—See issue of March T. -/
/:
Offerfngi—The company, is; offering the
holders? of its 35,pOO. share?, of : old 5%
cumulative preferred': the-right, to exchange,
such shares, on a share for* share basis,

AMPAL-AMERICAN PALESTINE
ing CORP; on. Oct. 3 filed, a
statement for 400,000 shares of

YRABf*

registration
4% cumul¬

ative preferred

non-voting Shares,
Details—See issue of Oct, 11., '

$5.50 per share.
Underwriters—The

through the * efforts1 of

*
.

the

directors

with "cash; adjustments for new:: preferred;
All shares of 5% preferred, npt exchanged
will be called for* redemption,
The under¬

;;

to, "the public If
'■**."*" 1
Bhares will be sold

price

and

ATLAS IMPERIAL; DIESEL. ENGINE CO.
Feb. 28 filedJ a.registration! for- 30,000,

writers/will: purchase

the company;
Stock not. issued /under the exchange offer
and, 5.0,00 additional shares* which- will; be
offered to.' tim public at, a price; to be
filed? by amendment;
:
Underwriters^-Lce Higginson*. Corp. and
'Blyth & Co.K Inc;, head the underwriting

oL series

group.

from

1 '*,

par
»

'/< CRIBBEN

filed:

SEXTDNs Cflc

registration*;

Offering—The price to the public will
,be filed by amendment. -* •*
1 z
; ;
;
Underwriters—Burr As Co, heads* the un¬
.

derwriting group.f;;
z

rr>/.^*

PeZ: 23-

Ipr* tOiQQflr

A. cumulative* preferred

stock; $6Or parr * The dividend/ rate * whl/be
filed1 by amendment:

par, and 260,000 shares of commqiV:;
$1.,
' vmx *,'Z;7
amendment^ <filed? with -the: SEC the
preferred/stock, rhas i been eliminated; and :
the number of common* shares has been: re¬
duced to; 79,590,: of, which 16590: shares
will; be sold **by? certain* stockholders ito
employees and others at: $14 per- share apd
63,000 shares will! be sold by? certain stookholders to underwriters?for public offering.
$20

COMMONWEALTH LOAN CO. On Mafch

1 filed, a.

shares, of .4%;

employees of. the corporation.
•

Offering—The

8*1 (3-18-46),

•

....

Business—stone and: photo, lithographing
business:

Registration Statement. No. 2-6229. Form
S-l.

COMPANIA

HABANA S. A. (Havana

•,•,'/

'.zz
*■

3'!

•**

''
/

-*:'..

GENERAL SECURITIES CORF, oh Sept.
28 filed* a registration statement* for* 200,OOO shares of common stock, par- $5. -v.-.
Details-—See"issue of Oct.-4. ■/
z
Offering—;The ; price, to the/pupllO; 'Ji
$7.50 per- share*
Underwriters—General. Finance Co.„ Atianta,

Ga., i*

fiscal/agent.

THE COMMERCIAL & FINANCIAL

Number-4474' vK

"Volume 163*

GIANT1 YELLOWKNIFE GOLD MINES, price and offering" price?wiH^b©*-filed- by
*-V*
Lfori ^b; 21 filed tf registration' state- amendment. «
;'■■■..mfent for 81,249 common shares/; $1 par, :• • Underwriters—The Wisconsin Co. Leads
t;'1
r". ■"
!>' Canadian; The shares are being Offered to .'the underwriting group,
,

■

i residents of the United' States and, Canada
by Toronto" Mines ' Finance Ltd. ] These

shiares

are part' of! a recentOffering' of an
aggregate qf 525,OdO shares Offered by the
company in .Canada to its own shareholders at a price of 45 (Canadian) per share,

j
1

■

•:
•

pany,

(

■

Mines Finance,
West, Toronto; ,1?

Toronto

—

Street,
njuned underwriter;
It is wholly owned
and
controlled
by
its parent, company,
Vfentures, Ltd#
<■
Ltd..

King

••

,r<,

•

Co», Los
''

filed

tached|;p»rSfiV*«ndv 150,000 shares of com?
mon,^"•FO;-cen4ia!/'par-vvalue.
The dividend

- total. of. 49,090,000.':
Hj&ins-,' Inc.,
ihcorpotated .on .Jan. 9,' 1948.- Andrew,

J;- Higgims;. :actin& ; oh- behalf l or.Mmselfc
and associates, Was > active ifi- the* organs
ization- of the company."
Tpestatementv

statement

covers

INC., on Jan. 10 filed a
registration statement for 412,899 shares
of common stock, par $1.
The shares are
issued and outstanding and are being sold
on behalf of the Adolf Gobel,
Inc. Syndi-

C^DetaiIs—See

issue of Jan. 17.
Offering—The common stock ;is being
offered for sale to the public on the New
York
Curb Exchange- on behalf of
the
Adolf Gobel, Inc., Syndicate; The secur¬
ities will be sold through regular market
channels over the New York euro Excnangt
at the best price obtainable in small lots
sb as not to uhduly depress" the market.
The "propsed
stock offering
constitutes
63.9% of the company's outstanding com¬
mon stock.
There are 12 members in the
/; y syndicate.

iHled^bY'^WttiendmenL''-, ^rt

**■ v/%
/-.Underwriters—To be supplied by

-.7/

amend?
f:

;C;
...'v/;',

.'C'.

filed

its' comhiort' stock

incorporators,gand.100,000. war¬ 20 "pro*"ratav - at ' the rate of one^sixth
entitling-thiy holders to purr of one share>f'or>each sh£iT,e "held" at $62
100,000 shares; of common; stock, jpgE^sharoI/lTtigfits' expire at 4'p.m. April
(the shares of common ^ock-and ther war-?'' T8^?r-Unsubscfibed shares will be offered

at an ,aggregate, .valUf." vbo*^BeW)p^bl4c?:by- underwriters.
$3,040,000). The underwriters- are ;f Underwiftt<Nfcr--The grdtip- is headed by
also purchasing from the company at 10
Glore, Forgan & Co. and Harriman Ripley
cents per
warrant
share, warrants en¬
& CO., Inc.
?
titling holders to purchase 100.000 sharet
of common stock.
The capitalization oi
NICKEL
CADMIUM
BATTERY
CORP.
the company is as follows: Common stock;
on Nov. 23
filed a registration statement
for 35,000 shares of capital stock, par- $10.
($L par), 2,000,000 shares. authorized, oi
which
Details—See issue of Nov. 29.
if -' ■■■':
1,200,000 will be outstanding and
200,000
warrants
to
purchase- common
Offering—^The price to the public is $10
stock all of
which will be outstanding:
per share.
,:-p tpppppf

for

period

Underwriters—None.

employment contracts, with
and Morris Gottesman.
of five years from Jan. 1

into

annual compensation of not
less than $80,000 and $35,000, respectively.
•Mus, in each case, the right to share in
u,iiy
additional
compensation - based
on
bonus or profit sharing plans.
Underwriters—Van Alstyne, Noel & Co.
heads the underwriting group. With name?
1946,

HOOD

filed

CHEMICAL CO.,

registration

INC., on Feb. 26

for 205,000

statement

to
(K

sh&r6i

per
;

Underwriters

— No
underwriters.
The
undertaking to distribute its
directly to the public.

company

stock

common

POWER

ILLINOIS

CO.

Feb.

filed

statement for $45,000,000
bonds due 1976, and $9,000,.000 Sinking fund debentures due 1966. The

due

tures

first mortgage

1956.

Details—See issue

Offering—The price to
be' filed by amendment.
Underwriters—The
will

writers

INC.,

The statement

public
the

Feb. 25 filed

AMERICA,

registration state¬

gle

certificates

payment

certificates

tificates

$8,025,000: series
series 10 cer¬
15 certificates

$15,000,000;

series

$25,000,000:

$100,000,000, and sprigs 20 certificates $75,000.000.
■

Details—See issue

Offering—The
installment

27.

of Feb.

certificates

are

the

Minn.,

neapolis.

the underwriting group.

principal

named

un¬

derwriter.

TRANSPORTATION
registered 270,000 shares
oi common stock, par $1.
i Details—See issue oi Jam 24.,
Offering—The price to the public will
be
filed by
amendment.
The securities
are being offered Initially for
a period oi
is
days to
present shareholders under
preemptive rights at a price to be filed
by amendment
The holders of approxiraately 200,000
shares have agreed to
waive their preemptive rights,
The un¬
derwriter
will- receive
50.000
five-year
warrants to purchase common stock at a
price to be filed by amendment. 1 For
these warrants the underwriter Will pay
the company 10. cents each or a total oi

,,»>

;i:;'

■

Jan.

underwriter

^.Underwriters—The principal

>f
-

;

common

stock,

without

Offering—The

lew

sto^k

record
one

Feb.

new

its

company

value.:
14.

common

;

^Details—See issue of Feb»,?7, ,
ibvUed^Comparty- is inviting - bids
>Acr,forr the purchase of the bonds; Bid-will
received at office of. New. Yo/k.:; Trust-

Co.^up to 11:30 a.m.,

March 26.

■'

Feb.

for conversion

the

KERR-McGEE

28,^filedf
fbr;?'60,00bi -

OIL

prei;erred;£t(>Ck;--'$22;50^li^Yalde;;Thedividend' rate wili^.hg>,fii^^/amehdm
'Dfctails^Segi'fMde'orMarcl^;^^;"?1''::

■?.

by amendment.
■
UBderwritersrt-Laird,
Bi'ssell
& Meeds
Aieads. the underwriting group...
:
^

LINN

COACH; &,

TRUCiCu CORP.;. for¬

;shares^f common,, par. 10 /centisxpery
share.
.V -- ; •■ .r;.. / f. >
•< Details—See issue of. March, 7.
Offcring^The piiGe' to-.the public" is $3
per share;: /
V:i ■
; ■ Underwriters—Bond
?di -Goodwm;: *inc.;
heads the underwriting group.
.
? v;
,.

•

HEIN-WERNER

J
"

'on.March

MOTOR

PARTS ^UORP.

filed.a-regitratiori^statement
pgr $3 per

fpr 40,000. shares of common,
share.
;

' ■

**"

Details—See issue of

March 7.

!• OfferingynThe 40,000 shares of common
are
being", offered for subscription
to nhe holders of common
stock at the
-•■■■..'..vratev- of one share of ?newv common- for
each
2Vi
shares -of, common - held. on
stock

-.
"

March*8.

sbld

-THe

unsubscnbed-rstook -wJll be

underwriter^, and' the -subscriptkm

;

MISSION APPLIANCE CORP. on Feb. 26

filed'a-

registration statement for l33,000
sh a res" - ofo om mon rcstock;" p ar $5.-Of the
total> 102,150 - shares are being1 sold^y.
company

and/ 30,850^-by

certain

the

dividend

under¬

par $1.
of March 7.

issue

for

Oil

which

Feb.

for

cents

per

payable

which

record

Jan.

filed

registration .statement

classes of
cumulative preferred
consisting
of
65,000
and
50,000
shares, respectively. The dividend rate will
filed by amendment."'
v
•
;

two

Details—See, issue of March 7.

;

Offering—An aggregate
pf both classes of
to

are

issued at this

<■

65,000
stock

preferred

time.

■ -

only

investment
or

subscribed

not

will

and

not

Holders

distribution,

for

basis,

with

cash adjust¬
preferred not
exchanged will be redeemed. ; Unexchanged
new shares
will be offered by the under¬
writers to1 the publib at' price to be filed
by amendment.
?

shares" of

ment. ;•? All

old

Underwriters—Dillon* Read & Co.,
heabs the underwriting group.
STANDARD FACTORS CORP,
filed

registration

4%%

15-year

debentures,

due

stock

31, 1960, and 22,500
stock, par $1.
«

debentures

offered

are

Dec.

Offering—The

;

Feb

statement for $750,000
subordinated

Details—See issue of March

and

common

units,1 consisting of
principal amount of
$1,000 and 30 shares ; of common stock*
at a price of $1,050 per unit. -1
*
debenture

oue

the

Underwriters—Sills, Minton & Co.,
the underwriting group.

mentioned.

ECONOMIC

CORP.

Details—See issue

Jan.

Inc.,

BOND

STATE

common

AND

filed

Feb.

.registration
common

CORP.

Feb.

statement
:

Feb.

for

CO.

Jan.

for 100,000
stock/ par, $1, / The

statement

common

20. -?

■

- - -,"

Offering—The price to the public will be
by amendment. Stone

series

1305,

filed

registration statement for $900,000

exercise

warrants.

'•

shares
upon

•

J:V

■fi Details—See issue of.Feb. 7.

Offering—The price to
the public Is
per share.
Of 40,000 warrants to
purchase common stock at $8,25 per share
prior to Feb; 1, 1951, 20,000 were issued
to
stockholders
on
recapitalization and
20,000 are being sold to underwriters at
10 cents per warrant share.
v.'!■ P."~:P

$8.25

Underwriters—The
Van Alstyne,

headed by

group

Noel dt Co.

;

Food Conference to

in London
A conference

Europe's food,

problems is to open in London,;
April 3, to which the Grovernmerits associated with the Emer¬
Economic Committee, for
Europe have invited the various

gency

nations'

Ministers

tives..
York

send

Food

of Feb.

from

London

Mar. 11 reported

the statement of
a
spokesman for the committee j
wwho pointed out that the forth¬
coming conference would have as
its goal the working out of means
by which* the European countries
would be able'to help themselves. '
in the present situation of world
shortage of basic foods.,.
;
.

istration

statement for 300,000
convertible preferred stock,

Details—Bee issue of Jan.

Offering—The

SITUATION WANTED

20.

pride

reg¬

shares of
$25, -

par

the

public

wil'J

TRAINEE
Securities

Insurance $30-5.

Christian:-

Veteran/.. 21;
Educated;
prefer Sales;
Underwriting Clerical; Personality Indus?/

trious;:;'%?;;?'';y\,:;;;y^

Box

321,

"Commercial

Chronicle," 25 * Park Place,

& Financial,
New York 8>

10%

heads the underwriting group.

; ;

filed

amendment.

Underwriting—To
PORTLAND MEADOWS

notes

due

Jan.

Dec.

UNION
q

SBRV^E

:
MJBUC
SIURE oriT March

filed

amend¬

ment.

1971. ?

Details1—See issue of Jan. 3.
X Offering—The

WIRE

ROPE

CORP.

Feb.

filed

a
registration statement for 42,000
Shares capital stock, without par value.

COi OF

NEW*

IIAMR-

Analyst, C o r r« s p«n d e n t..
TRADER EXPERIENCED unlisted, indus¬
trials,

"tion

company

fqr sale tostttockholders at the price

New York.

basis;. ;-witht/cash

adjustment;
The
of the neW" preferred

itOXthe; public .Ot a price to be filed by
amendinenii.^" All shares- of old- preferred
tioOvjexchanged will be called for redemp¬
tion at $107:50' for the $6 andf4l05 fbr
the: 40preferred,
plus accrued 'dividends.
Underwriters—T6
be
filed
by amend¬
ment,...

•.

■

LIGHT SECURITIES

RAILWAY.- &

CO.

;on Feb: 7' fned.«:-!registratibtt statement for
20.392 shares of ,4%
,

Details—See
:

new

322,

Cd., inc.,

,'Otierlttg^rne" stock- wm* airSt oe offered
to the* holders iaf -the company's $6 *iid
-

issues, have clients situations*
Foreign. '
vi"Commercial & Financial
Chronicle," 25 Park Place, New York ffc
Local*

Box:

for

> Details—See issue of- Marciv 7.

Security

Offerings—The

will offfer the
underwriter named.;
42,000 shares for a period of two weeks
after the effective date of their registrar
■

-1- filed O registration
of $15.50' per/udiare.The shares? not pur102,000 shares of preferred : chased
by. the stockholders will be offered
stocky $100 par.. The stock is to be offered; ; for -sale to the public, by the underwriter
at .competitive bidding,: with the dividend
.at the same price of $15.50 per share. ?
rateusupplied. 4)y^ amendment.
■- ■■
? Underwrlters^-P;
W. Brooks &

statement

•TRADER-ANALYST

Details—See issue trf Feb. *7:
:

issue

Offering—The.

TRADER
UNITED
Jan.

STATES

filed

RADIATOR CORP.

registration statement for
92,344 shares of common stock, par $L
v| Details—Sea issue of Feb; 7. ■: ".:
f
Offering—The- company has granted to
holders of its common stock Tightfs to sub¬
scribe for not exceeding 92,344 shares of
oOmmon at $11 per share at the rate of
one new share for each 2Vi, shares held.
Unsubsoribed. shares. will be purchased by
underwriters and offered to! the public at
a price to be filed by amendment.
] Underwriters—White, Weld d? Co. named
a

principal underwriters,

.'v;

of Feb.

company,

14.

is* 4ssuiB^

20 years

experience. Seeks

connection

w.i tJi -New

York Stock Exchange or
unlisted firm. Box M 21,
Commercial

Financial

■

Chronicle,. 25 Park Flace?

cumulative convertible
UNIVERSAL .WINDING

filed

CO;

Feb.

registration statement for 119,400
shaafes of common stock, par $5 and 10.600
a

-.warrants,

the' New
oh>

dispatch to

"Times"

and

representa¬

$1,000,000.

TEXTRON, INC., on Dec. 28 filed

Co.

company is also registering 40,000
of
common
reserved
for
issuance

and

150,000

filed

(UnderwritersHayden,

RADIATOR

registration

CO.

Offeringv—Approximate date of proposed
offering March 15. 1946.

stock, par $1 per share.
of

YOUNG
filed

registration statement
certificates series'
investment certifi¬

$2,000,000

Details—See issue
AIRCRAFT

;

J, Carrick, Ltd.," Tor-*
is named principal under¬

accumulative savings

cates

MORTGAGE

for

1217-A,

PIPER

■

stock,

;

Dec

MINES,

writer.

Agriculture

convertible

of common

snares

Inc.

heads
PALESTINE

GOLD

registration state¬

Canada,

outstanding 43,4%
old preferred will
given the opportunity to exchange; the
old preferred for tbefneviT preferred 'on a

be acquired
the purpose

for

funds.

the

the terms of the offering.
that the shares so

purchased

resale

are

"jyyV; V'i-;"■'/•'

stock,

Pacific

told

filed

offers
to
its
stockholders
the
right to
subscribe for
150,000 shares on the basis of three-tenths1
of
one
share for
each share. of capital
stock
held
at
a
price to be filed by
amendment.
Union Oil Co. of California,
thb beneficial owner of 212,234 shares of
capital
stock
of
Pacific,
constituting
42.45%
of
the outstanding
shares, .has;
agreed with the company to purchase at
the subscription price all shares of capital
offered

Underwriters—J,
a

SOUTHWESTERN PUBLIC SERVICE CO.

company

accordance with

;

Details—See issue of Feb. 20.
;
1'
? Offering—The
offering price to the pub¬
lic is 30 cents per Share,. United States

onto,

Dec. 26 filed

Jan.

funds.

States

YELLOWKNIFE
Feb.

par $1.

;

Feb. 15, 1946,
15, 1946.
Underwriters—Kuhn, Loeb & Co.
stockholders

150,000

jthe. preferred stock, par $100 and 163,140 sub¬
scription .rights;^.
•

holders,^
iDetails^rSee'/issUe-'Of-MalK^fr^^!^ ,i?H

issue

United

ment for 1,000,000 shares of common

of the

YANK

LTD.

amendment.

OIL CORP.

has been declared

Feb. 28

for

•.

-•

COR?

statement

merly "called Dneonta? Linn edrp./edovFId^ wexcKanged/'^wwes
28 filed aireKistration statement for 250,are .to
be sold to underwriters for resale
000

•

filed

Offering—The price to the public will
filed by
amendment.
The statement
says
shares purchased upon the initial
offering will carry the right to receive

Fierce;

Lynch,

$5 dividend' preferred stock on a share for

preferred

new

capital stock,

LNDUSlto^HW^'

;a: registration ; statement

stockholders.

tails—See issue of March

filed

■»

offering is to be at par,
Kjaith./total net-.proceeds to the corporation
placed^ $900,000.,,.
,
.
;

j Offetlnp—The price to the public will, bq

...

Offering—The

unsecured

P V-i,; ^

Ori Feb.

:•

l^y certain

XlRMOTIVE

Details—See

Underwriters—Willis E.. Burnside At Co..

14.

names

filed

Feb;

New York.

old

registration

pre¬

1, Offering^-The price itcr. ^herpirtrtic-is $25
CORP. on
registration statement fof; .per 'share. ";'; •":%■
215,000 shares of common stock ($2.,pari.
Undet^rifers/-^rausJ;Blossei'|Chlcagq,
.The* shares are issue.d, andr. a^rov.%iqgr (jstjld

27 filed

Feb.

PACIFIC

filed

' HAYES- MANUFACTURING

old

Details—See • issue

CORP.

1946.

lic is 28 cents

state¬

shares of

i Bids

six

/ Dealer-Manager—Merrill
"Fehner & Beane,

Ohio

statement for 30.000
shares of $1.25 cumulative convertiblfr'preferred (mo par) and 130,000 shares of com«
mon
(par 25 cents).
The common shares

will

advertising'

Withdrawn

220,000' shares ' of capital stock, par $1
(Canadian)'.?'
/Details—Bee Issue
of Aug1.
2,
Offering—The offering price to the pub¬

of Feb-

and

Statement

Details—See

registration

will

WATER

will

rates

Mark

VIRGINIA RED LAKE MINES* LTD. on
June 24 filed a registration statement for

registration statement for 150,000 shares of
common stock
(no par).
The shares are
Issued and: outstanding and are being sold
by a present stockholder.

remaining 33,978 shares (23.2%)
of old
preferred will be required to take the re¬
price of their shares in cash

filed

Corp.

■

registration

being

21, at 424 per share at rate of
for each five shares, held.

JEFFERSON-TRAVIS

sold

writers

are: reserved

each

Subscriptions -expirp March 19,.
Uuderwriters—The - underwriting
group
ts
headed by McDonald & Co.,* and the

ferred. ;
S
Details—See issue of March 7;
- ■
t HACKENSACK
WATER .CO. "on Feb.--21
flled^a registration" statement-for $15,00^ -^Offering—The". price* to the pjublic
000
first- mortgage r bonds; due MarchxiL- ,$25,?per share;

amendment/-v-

14.

registered 20,000
stock, $100 par value.

Company.

public

competitive bidding and
the offering prife filed by amendment.

filed

will

demption

the

stockholders

Offering—The bonds and preferred stock

redemption price of
preferred by the de¬

the

offering

dividend

Details—See issue

Feb. 11 filed

par

Details—See issue of Feb.

•;

BROOK

by amendment,

preferred.
As the
amount of new preferred will be limited
to 675,000 shares, the right is limited to
holders of old preferred who first deposit
an
aggregate of 112,500 shares
(76.8%)
of the old preferred.
The holders of the

registration statement for 33,153 shares

and

interest

plus dividends.:; The
to such holders the

granting

Underwriters—None
CO.

^ifl^>^7%evin'teres1^',rate^wili.be:fiiedijfeif.

for

JAEGER MACHINE

ik Allen & C<L New York.

livery

ATLANTIC

GULF

per

Union

.^Underwriters—Investors -Syndicate, Min¬

$23,500;000 first mortgage bonds;
15, 1976, and 100,000 shares of
cumulative preferred stock, par $100.
The

its

receive

stock

type.

payment

filed

traveling

cover

Registration

due March

company

following face amounts: Sin¬

GO.

$125

under¬

by amendment.

SYNDICATE

Will

ment for the

25,000

■'

$100.

par

the

names

filed

INVESTORS

upon

heads

of March

indeterminate number of

the conversion of the debentures, and
shares of common, which shares
;
may be issued to Allen & Co., New York,
pursuant to a proposed standby agreement.
* Details—See issue of Feb. 27.
t Offering—The price to the public will
P toe filed by amendment. ;
:.;:'
Underwriters—Allen & Co., New York,

sale at com¬

petitive .bidding with the price and interest
rates to be named by the successful "bidder.

shares to be reserved for issuance

common

offered for

securities will be

secured convertible deben-

March

covered

aisp

registration

Feb,

ance

ment for

intends tb call
outstanding
146,478
7% cumulative preferred stock
The old preferred is redeemable

Offering—The
redemption

their

public $5
\fj
r~'\*'

the

Offering—Price

of Feb.

Details—See issue

•

right

•

CO.

are"

share.

underwriter

Securities

SCRANTON-SPRING

Dec.

CO.

the

at 50 cents per

Underwriters—'The

expenses.

heads the-underwriting gVoup,, '

Underwriters—The

„

for

filed by amendment.

ELECTRIC

GAS

;

price to

Daniels & Co.,.*1421 Chestnut . Street* Phil¬
adelphia, Pa., who will receive a com¬
mission of 30% and 5% additional allow¬

sus¬

by amendment,

Underwriters—Mellon

SINCLAIR

company

MOTORS
CORP.
on
registration statement for

$12,000,000 4'c
;

Offering—The price
be filed

Feb. 7 filed a registration statement for
675,000 shares of 4% cumulative preferred
stock, par $20.
y
7
t
-

GRAHAM-PAIGE
a

amendment,
...
Details—See issue of March 7.:

filed

statement should

(.•;

sinking fund bonds, series A; due
1, 1971.- The interest1 rate/will be

March

1945.

OKLAHOMA

the

offered

SAGUENAY POWER CO., LTD., on March
filed a registration statement for $23,-

200,000

securities are'

The

being offered by the corporation. /"
Registration Statement withdrawn
29,

which

be $8 per share.

Offering—The" 250,000' shares

Order

registration

taken

Feb, 21

■.

—
Principal underwriter
Dallas, Texas.
Hearings—Stop order hear¬
ings to determine-whether the effectiveness

Stop

ation of

J, Higgins

109,400

offering includes

common

Porcupine
gold
mines;
LTD.? on Jan; 16 filed a registration state¬
ment for 250,000 shares of capital Stock,
$1 per share.
Details—See Issue of Jan., 24.
"
y

Underwriters

record; March

chase

Andrew

verity

Bennett & Co., Inc.,

for by the

discounts

ers' of

entered

;

K
;

Underwriters—Reynolds & CO; heads the

1J)§^company for subscription to the hold¬

LTD.,
statement

for 990,793
(par41).>

of common* stock

mon "Stock,

of others to be

registration
lor 600,000 shares of common stock, $1
Canadian currency par value each. ,
Details—See issue of Jan. 10.
Offering—The company is offering its
common stock to
the public at 50 cents
United States currency per share.
If the
company accepts
offers from dealers to
'>u purchase the stock, the company will sell
to such dealers, if any, at 32.5 cents U. S.
currency per share for resale at 50 cents
U. .8; currency per share.
The estimated
;
proceeds to be raised by the company is
$300,000 U. S. currency maximum,
and
$195,000 U. S. currency mlntmum, if all
the shares are sold by dealers, aua asPP sumlng in any event that all the sh., res
•'"#i;*re:sold.
Underwriters — No underwriters named
Jan.

statement

May 31 filed

filed by

CITY PORCUPINE MINES,

GOLD

OlL CO.

238,000 in cash, and

♦

Under date of Jan. 29, 1946, the company

$10
•

gfoup.

pended- now pending before the SEC.

.rants being

being,
10,004

warrants

;

the: public will

registration

'i.'

■

-300.00|P shares of cpm»including the'^ihares subscribed

exercise : of

Offering—The
shares

Securi¬

^^NATiONAL DISTILLERS
points voutwthe..companyvds,
PRODUCTS
fused with Higgins Industri«, Tnc;-r,now UORP* Oh' -Fiflj^qF'fMed a registration state¬
In statutory liquidation; 1 UP: isr. / intended
ment lor? 379f8&4**shares of common' stock
Higgins, inc., shall acquiER: from f-Higghii
Industries -Inc. a portion' pf -its- business;
rDetttlls—See issue -of Feb. 7.
'
'.v
plant and propcrty -fbi-Varpproximately $4;-:
Offering^Thg stock is -being offered by

■

Underwriters-No underwriting
and commissions are being paid.

Webster

Details—See issue <of June ^

ADOLF GOBEL,

Corp.'',

RED BANK

■

Offertn^^^The price to ,the piiblie will be

(

Underwriters—Stone

39,400

company,

Details—See issue of Feb. 7."

preferred Imay exchange for new preferred
on basis of 2 shares old preferred and 20
rights for' 5 shares Of new preferred.
ties

70,000

include

certain. stockholders* and

share,

per
holders- of 6%

certain' conditions

issuable

price to be

amendment.

Under

by,
20Q,-

p00?.%4d|y«nal shares of common reserved
aj^insta warrants. ■
••
»/',»>■
?r riWrtsrflu-—See issuer of- Feb.- 7.
.

held at

registered
sold'< by- the

being
sold

will,.,be. filed,

rate .paerred
'

of common

filed

,comp?ft^»h>ck purchase warrants at-

AMERICA' on

1539

the holders ;of; its common stock rights to
20,392v shares, of ^convertible s preferred
stock on. the basis of one Share for each
8

'''
CORP.. OF1

•

Angeles, Pal.

registration statement for
190,000 shares of preferred stock, series A,

was

;

with

Offering—The prtoe to the public; is-. $11
per share, or; a gross oL$9,900,'000; Under?*
Writing-. discounts .?, dr. ; commissions? vj-awt;
placed. Jafe:.90';cents!Va? share/ leaving //net
proceeds. to .the company of $lQprt> af8ha*t?

rant

Underwriters

Jan; 29

|aectiou::.with't;acqUi8iiiibAlb^pi0pertyf;')-.Jv';

rqtio of One share for every 15 shares of
; Ftobisher then owhed by" them,
and to
■VI' shareholders oLVentures, Limited Of record
Dec, 15, 1945, as: resident iri the United
States, in the approximate ratio of one
snare for every 20 shares of Ventures.then
owned by them;
The balanoe -of the shares
will' be'offered in Canada and. the United
States to such- persons as,^Toronto; Mines
Finance, Ltd; may determine, who may
/include officers and employes of the com?

Is' Lester

.stock; :pat ,$t/.-to* be offered* ;to
public; and 300,000' shares. issuedsin- conDetails—See issue.of Feb;- 7.; •>'

(Underwriters—The principal underwriter

rcommon

;<Cahadian)pefshare,or the United States,
*'i:-9 equivalent.
TorontoMines?. Fin %nce Ltd.
; iritends to offer 44,195 of" such; shares in
;
"blocks? of not less., than , five- shares . to
j ?
shareholders of Frobisher Exploration Co.,
;
Ltd., of record Dec. 15, 1945, as resident
in' the United States in the approximate

$8.25' -per shawS'*:

HIGGINS, INC; on Jan. 29'file'd a1 regis1-?
ftratiofti statement for 900,000 shares <; oi

j-'Details—See,issue of Feb. 27PKiPpX
]
V -Offering—The offering price is $5.10

;

Offeringe^Phqtprice to the public: Will be

,:■■

CHRONICLE

:JTh,e:

New York 8, N. Y.

•

THE COMMERCIAL & FINANCIAL CHRONICLE
(Special to I'he Financial' Cjbronicxe)

LOS ANGELES, CALIF—Her¬

;

New England Public Service

C. Betz has been added to the

man

Broker-Dealer Personnel Items

Thursday, March 21, 1946

staff of the California Bank, 625.
South Spring Street.
(Special to The Financial

LOS

Street.

Co.,

V."/'

to. The

Financtal

ANGELES?

Lawrence

Logansport Distillery

PQ.Q€
Stocks,...,,... 1510
*

Rhodesian Selection

Gaumont-British "A"

Investment

•

Funds

Recom-

Scophony, Ltd.

U. S. Finishing

.1512
Our Reporter on Governments.;,.V. 1508

;

......

................

Lowenstein,: (M.)

Reporter's Report............. .1524
utility Securities.
1500

Public

Chronicle)

has

Insurance

mendations and Literature........ 1502

Mutual

Mexican Corp.

Railroad Securities...;............. ,1514
Real Estate Securities.............. .1506

CALIF.-—C.

Macurda

.•

■

Dealer-Broker

Our

(Special

LOS

and

Calendar of New Security Flotations. 1537
Canadian Securities, 1520

Spring

■

Business Man's Bookshelf ...........1532

Chronicle)

South

.«•«*

Bank

with Nelson Doug¬

.510

;

ANGELES, CALIF —Mary

Deegan is

lass

index

become

Securities Salesman's Corner..

connected with Edgerton, Wykoff
&
Company, 621 South Spring

Cinema "B"

1518

Tomorrow's Markets—Walter Whyte

Says ........................1526

Street.

Michigan
(Special

LOS

seph

to The Financial

ANGELES,

Graham

CALIF.—Jo¬
joined the
Co., 210 West

Sections

Missouri

page

1504

ESTABLISHED
Members N.

1505.

has

staff of Fairman &

Seventh Street.

Connecticut

and

curities

Chronicle)

Teleiyoe N.

Dealers Ass'n

HA. 2-8780

1-1397

•

Princess Shops

Trading Markets in

Lithomat Corp.

Amalgamated Sugar

Intl Resist.

Artkraft Mfg. Com. & Pfd.

Ironrite Ironer Com. & Pfd.

Baltimore Porcelain Steel

Kropp Forge

Behdix

1919

Y. Security

Exchange PI., N. Y. 5

Worcester Trans. Assoc.

Monolith Portland Midwest Pfd,

Keyes Fibre

Lear Inc.

Appliances

;

United Elastic Corp.

Kut-Kwick Tool

Helicopter

Bendix Home

6% Pfd. & Com,

Buckeye Incubator

Majestic Radio & Television

Clyde Porcelain Steel

Sprague Electric

O'SuIIivan Rubber

Du Mont Laboratories

Sheraton

Globe Aircraft

Telecoin Corporation

Greater N. Y. Industries

Corporation

Milk Street, Boston 0, Mass..

Boston

New Tork \V

Hubbard €442

Teletype

Hanover 2-7913

BS 321

Wilcox-Gay Corporation
We specialize in all

;

Kobbe, Gearhart
^

Insurance and Bank Stocks ?

Company

Industrial Issues

INCORPORATED

Members

New

York

NASSAU

telephone

Security

Dealers

STREET,

NEW

YORK

philadelphia telephone

REctor 2-3600

Enterprise 6015

Public

new

tore

Utility Stocks and Bonds

TEXTILE SECURITIES

bell teletype

Investment Trust Issues

Association

Securities with

1-576

Ne w Eng.

Market

Frederick C. Adams & Co.
:

A Market Place for

Specialists in ■
New England Unlisted Securities
•.

24 FEDERAL STREET, BOSTON 19

Low Priced Unlisted Securities

Established in 1922

Tel. HANcock 8715

Admiralty Alaska Gold

HAnover 2-0050

Teletype-—N. Y. 1-971

For Banks & Brokers Only

Trading Markets

Automatic Signal
Bendix Helicopter

Hoosier Air

,;V-

Freight

Huron Holding

Consolidated Industries'".
Cosmocolor

Jardine Mining

■v--V>'V-'-v*

Kinney Coastal Oil

Copper Canyon Mining

Lava Cap Gold

Duquesne .Nat. Gas

Martex Realization

Petroleum Conversion

Gaspe Oil Ventures

;

Rademaker Chemical

General Panel

r.ARL marks & r.o. inc.

Oklahoma Interstate Mining

:.i

Glob^ Oil & Gas '

* Red Bank

•,

Haile Mines

FOREIGN SECURITIES

Happiness Candy

SPECIALISTS

50 Broad Street

Trading markets in

Ley (Fred T.) & Co.

■.

Differential Wheel
Electric Steam Sterilizing
Federal Asphalt

''Old Shares''

:>v

Kut-Kwick Tool

Dri-Steam Products

REORGANIZATION RAILS

Tele. BOstoa 29.

Harlow Aircraft

Buda

gfeg Camden; Forge J

Oil

Reiter Foster Oil
South Shore Oil & Dev.

Devoe &

Southwest Gas Producing V

Reynolds "Bff

Maine Central Common

New York City
Maine Central Preferred

Mar^Tex Reaiization
Pollack Mfg.

NEW ENGLAND

Pressurelube

New

England Local Securities

Simplex Paper

Tybor Stares

Specializing in Urdisted Securities

WALTER Ji CONNOLLY & C O.
:

24 FEDERAL
Telephone Hubbard

INCORPORATED 1928

ifpiv:;S^E::;'::BANKINSURANCE: |J:-^3^1

STREET, BOSTON 10, MASS.

3790

Bell System

Teletype BS-128

PUBLIC UTILITY

-r-

INDUSTRIAL

REAL ESTATE

Sunshine Consolidated

BOUGHT

Manufacturers of Synthetic

Bell Teletype NY 1-886

Teletype BS 259

2-79X4 /

—

SOLD

QUOTED

—

Susquehanna

REMER, MITCHELL & REITZEL, INC.
208 So. La Salle

Approximate Mkt. 5%-6
Booklet

Request'

Amos Treat & Co.
40 Wall

St.

BO 9-4613

yttt^ttr^^wiiin'mwiitilfaw'l

New York S, N. Y.
,,

Tele. NY 1-1448

TELEPRINTER
«WUX"

St., Chicago 4

RANdolph 3736

WESTERN UNION

Telephone COrtlandt 7^0744

Mills

NeW York 5

Telephone HAnover

PIasticizers& Chemicals

Broadway

Rubber,

IT." STTti^

120

BONDS; PREFERRED AND COMMON STOCKS

San-Nap-Pak

Reiter-Foster Oil

St., Boston 9, Mass,

T®4. CAP..0425
L

LUMBER & TIMBER

Pressurelube, Inc.

148 State

■

Steel Corp.

;

BELL SYSTEM TELETYPE
.

•

CG-989

Hill, Thompson & Co., Inc.
Markets and Situations lor

120

Dealers

.Broadway, New York 6

Tel. REctor 2-2020

Tele. NY t-2681

Full text of Commercial and Financial Chronicle : March 21, 1946, Vol. 163, No. 4474, Section 1

FRASER