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m
MS. ADM
1MMK
Final
ESTABLISHED OVER 100
Edition
In 2 Sections-Section
YEARS
1
ommetcia
.
Volume
Leon Fiasei Supports
Bankers' Position on
Who Gets the
Leon
Fraser,
of the
First National Bank of New York,
appeared on March 20 before the
House Committee conducting hear¬
ings
the
on*
Bretton
Woods
pro-
posals
and
the
supported
International
Bank
based
■
"as
on
Monetary Fund
By W. L. HEMINGWAY*
By WILLIAM R. YENDALL
President
con¬
structive fi¬
President, Mercantile-Commerce Bank and Trust Co., St. Louis
Past President of the American Bankers Association
♦
President, Richards-Wilcox Canadian Company, Ltd.
■■■■;?.
Copy
a
The Defects of the International
Money
And How Much?
Bretton Woods
;1
Price 60 Cents
New-York, N. Y., Thursday, March 29, 1945
Number 4372
161
Reg. U. S. Pat. Office
Holding That Test of Economic Justice Is Found in Inequality of Per¬
Prominent Banker, After Describing the Principal Defect of the Inter¬
Writer Contends That Even if Individual Incomes Over national Monetary Fund as an Exchange Clearing System, Lists His
$25,000 Were Distributed Among the Lowest Income Groups, Each Objections, as (1) in Granting Loans, the Fund Makes No Distinction
Recipient Would Get the Equivalent of Va Chocolate Bar a Day." Between Credit Standing of Countries; (2) There Is Ambiguity in the
Asserts Advantages of Tariffs, Patents and Other Privileges Are Diffused Interpretation of the Fund's Provisions; (3) No Proper Control of the
Through the Whole Population in Wages, Taxes and Prices of Goods, Management of the Fund; and (4) the Operations of the Fund Will
and That Business Automatically Distributes Total Production Within a Lead to Managed Economy and the Strict Control of Foreign Exchange
Narrow Margin of Complete Equity.
Says Problem Is One of Making Operations. Warns That "if Fund Should Fail It Will Create Discord
and Will Encourage the Opponents of International Cooperation." Wages Buy More and That Elimination of Manpower Waste is Key.
sonal Incomes,
,
nancial
prin¬
ciples"
but
Monopolies, tariffs, interlocking directorates, patents, bank credit,
"profit system"—how much do they Cost the American people
and the
stated that the
objectives
of
cents?
be
would
more
attained
' interests
would
be if
measure
safe¬
guarded if it
J
t e r
were consoli•
dated into a Monetary
Department
of the Bank, thereby avoiding the
creation of two independent instiHutions which would overlap. This
merger would permit a simplifi¬
cation of the complicated and ob¬
scure structure of the
Fund and
eliminate the difficult problem of
finding competent personnel to
man
two
separate international
institutions, he said.
He recommended that as a con¬
in the con¬
dition to membership
Monetary De¬
partment of the Bank as to the
with
consult
'
the
abandonment at the earliest prac-
(Continued on page 1378)
these
of
Bretton Woods Says Automatic Loan Pro¬
vision Was Necessary as Compromise to Get Approval of Plan.
Holds
Plan Is Not Premature and Can Be Put Into Operation Before PostWar Reconstruction Is Accomplished.
so-
tices"
of
our
rency
16, Edward E.
Brown, Chair¬
is
there
simple
method
of
a
so
far as they
R. Yendall
We
affect personal in¬
and that is what counts.
comes,
Index
profits of corporations as
The major part of such
such.
used
are
expand
to
the
That is the way a na¬
Features
Regular
of
on
and raises its standard
tion grows
of
"
living.
■
*
There is no proper
quarrel with
business profits that are
more
Interstate
and
other
*
& CO.
Exchange
25 Broad St., New
HAnover 2-OGOO
Established
Rep.
up
In
to the
other
York 4, N. Y.
Brown
Edward E.
INC
PROSPECTUS
64 Wall Street, New
;
BROKERS
or
to impose up¬
on
DEALERS
on page
INC.OIPOtATIP
Dallas
48
634 SO. SPRING ST.
WALL STREET
NEW YORK
techni¬
mere
fun da-
mental,
believe.
that
we
For
W.
want to present
about
L. Hemingway
I
reason
to you our views
Monetary
Intenational
the
*A statement made by Mr.
Hem¬
ingway to the House Banking and
Currency Committee on H. R.
2211, the Bretton Woods Agree¬
ment Act, March 22, 1945.
V
(Continued on page 1384)
State and
Bonds
for Banks, Brokers
Bond Department
Hardy & Co.
York Stock Exchange
New
York Curb Exchange
30 Broad St.
I>1. DIgby 4-7800
New York 4
:
Y. Security Dealers Ass'n
New York 5
Teletype N. Y. 1-576
Philadelphia Telephone:
OF
THE
CITY OF
NEW YORK
Tide Water Power
Company
■
INCORPORATED
REctor 2-3600
NATIONAL BANK
COMMON
;
Kobbe, Gearhart & Co.
Tel.
CHASE;
Tele. NY 1-733
Harvester Co.
45 Nassau Street
THE
LOS ANGELES 14
5
RAILS.
V
Members N.
TELEPHONE-RECTOR 2-6300
they
calities,
Service
Detroit
STOCK EXCHANGE
York 5.N.Y.
not
are
1399)
Members New
from
HUGH W. LONG and COMPANY
Syracuse
INDUSTRIALS
C°
time,
your
but the differ¬
Bond Brokerage
Members
York 5
Review
BULL, HOLDEN 8c
not
necessary
BE
FROM
OBTAINED
AUTHORIZED
PHILADELPHIA
BOSTON
MAY
ELECTRONICS
I
e
the
(Continued
INVESTORS
1927
Troy I 'Albany
Buffalo
Pittsburgh
Williamsport
Cleveland
14 Wall St.. New
b
and subject to conditions
limitations, up to the amount
quota assigned it by its
Fund
Agreement.
Bankers and
of
BOND
MEMBERS NEW YORK
would
it
post-war period, and
investment securities
Teletype NY 1-210
Chicago
technicalities
and
FTTI FUNDAMENTAL
R. H. Johnson & Co.
Exchanges
Geneva
Fund
a
of
matter
each nation has
quota.
way.
is just
and Dealers
Members New York Stock
London
its
to
LILIENTHAL
HIRSCH,
the
of
gBgBBB 555s.
VICTORY
Hirsch & Co.
Successors
the
it
years,
tary stabiliza¬
in
prefer
another
the
words, it has the right to borrow
the Fund over a period of
interna¬
mone¬
others
from
a
echa nism
tional
of
amount
go
Municipal
for
.
m
of
under
that
is
sources
need
impor-
for
tion
Buy War Bonds
Request
on
used for
buildings, more machinery,
(Continued on page 1388)
Aircraft & Eng. Co.
Circular
and
tance
the
of
conditional rights, subject to va¬
rious limitations, to use the re¬
professional
banker,
gave
testimony a s
the
first
Fund Agreement,
a
profits
criticisms
many and varied," Mr.
said, "in the last analysis,
us
route and
are
are
"The*
Con¬
Woods
W
they generally boil down to two
basic criticisms: 'a:;'
ference who is
"
1400.
Fund
Bretton
need not concern ourselves
Monetary
the
\
Brown
and the
only
U.S.
delegate to the
chief crit¬
answer
against
V While ^ the
cago,
to
page
Fund.
with the
business.
r
icisms
the
Chi¬
of
Bank
William
together,
put
took occasion to
the
of
Board
them
of
should
we
If
of
that
believe
ences
First National
total result of
all
of
man
the
figuring
Appearing before the House Committee on Banking and Cur¬
in support of the "Bretton Woods Agreements Acts" on March
'
private enter¬
prise system,
but
Fund
S. Banker Delegate to
U.
"injus¬
to
solidated Bank, countries agree
y
Of International Monetary
sep¬
called
some
one
arately the ef¬
fect
of
each
Fraser
Leon
i
r
we
cannot
We
bet-
■
■;
Edw. E. Brown Answers Criticisms
could
we
target
$s a m e
but
abolish them?
and American
,
point at issue in connection with the
of method.
We are all aiming at the
that the only
me
w>-
better
off
success¬
fully
■-r
to
seems
How
much
t heFund
.
dollars and
in
It
Bretton Woods proposals is one
Enterprise 6015
on
request
•
HART SMITH & CO.
Reynolds & ixchange
Co.
Members New York Stock
Members
New
York
52 WILLIAM
120
Broadway, New York 5, N. T.
Telephone:
Bell
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\
Torofcto
■'
T•
ira haupt & co.
Members of
Principal Exchanges
111 Broadway, N.
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Y. 6
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THE COMMERCIAL &
1370
Trading Markets in:
—1
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1
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of
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Securities Dealers, Inc.
BELL TELETYPE JTY
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on
Request
Exchange
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Steiner, Rouse & Co.
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120
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Members New York Stock Exchange
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HAnover 2-0700
Carborundum Co.
Pfd.
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The
lob-Creating Power
Of Private Enterprise
Kearney & Trecker
Pfd.
Vending
Kingan Co., Com. &
Peerless Weighing &
WRIGHT
By IVAN
& Preferred
Common
Professor of Economics, Brooklyn College
Asserting That to Provide Jobs for Everyone
' f
III)
i
120
Exchange
Stock
Baltimore
Members
Broadway, N. Y. 5
Teletype N.
and Industrial Ascendency in
lation
dicts That "if the Government
Y. 1-1227
tive
'
^
lessons
learn
that
helpfulness to
others is help¬
fulness to
these
1-4070
1-1548
social
io
s c
and
Limestone
Indiana
Wright
Ivan
Dr.
Service
Preferred
Westchester Service
1953
4s,
The
H. G. BRUNS & CO.
New York 5
Telephone: WHitehall 3-1223
Bell
provide
ablebodied
every
the
which
greatest
use
person
of
Film
for
enable
"A"
Publications
&
Marion Steam
verify
are,
private
enterprise
or
in
The
Preferred
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Dr.
.miGompanu
Members
N.
Y.
Security Dealers
St., N. Y. 5
Assn.
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adequacies of existing institutions
to
meet pressing
monetary and
great
rience
problems.
The Federal
System grew out of expe¬
with
periodic crises and
money
panics because there was
Sys¬
which
tem
marily
is
pri¬
with
domestic
our
There was no central
authority.
The Bretton
proposals grew out of ex¬
system.
banking
Woods
credit
who, in an article
History of Industrialism in
Encyclopedia of Industrialism,
perience
prob¬
The
lems.
M.
tury before private capitalism be¬
S.
System,
Szymczak
came
ard
espe-
First and
be¬
evident that the gold stand¬
also subject to
was
ticipated
the Bretton Woods proposals prac¬
the Board of Governors, has par¬
1,014,000;
the
Wars when it
crises and
cially through.
/
powerful—between 1651 and
1751
the population
of Great
Britain rose from 6,378,000 to 7,—
between
World
Second
Reserve
cen¬
came
of
something lacking in our banking
monetary and
Shadwell
shows that while in the last
credit
Reserve
concerned
in the next
Associated
First
Woods
to the Federal
the
increase
itself.
Reserve
Mr. Withers quotes from
an
J ' —
agreements thus far is not unlike
the history of the Federal Reserve
therefore,
im-
t.
392,000,
Bey Teletypes—NY 1-1126 & 1127
international flow of money.
portance
Government
briefly
by Mr. Hartley Withers in his ex¬
cellent book, "The Case for Capi¬
the
Certain Exchange
of all, both the Bretton
Agreements and the Fed¬
eral Reserve Act arose out of in¬
e
of
com¬
productive forces of free¬
talism."
That the
Agree merits
of
regulated enterprise.
on
37 Wall
the
into
American
energies,
dom in industry are stated
Common
directly
plays
•/'
to make
capacity
Maintains
Agreements which are now being considered
The Bretton Woods
by the Congress are concerned with the
v i
This
flowr
The
creative
Proposals.
Restrictions, and Will Not Find (t Easy to Live Up to Their Agreements
k
the
'
Indicating
Manufacturers, He Admitted That It Is Expected
dress Before Illinois
mar-
parison with State
Boston Terminal 3 Y2 s,1947
Macfadden
Woods
Bretton
money
free,
Pfds.
General Aniline &
his
for-the
Need
That Member Countries Will Be Permitted to Maintain
to freedom
will
:
Complicated." Says Federal Reserve Officials Were Con¬
Up Plan, and From Our Board's Point of View the
Establishment of the Fund and the Bank Are Highly Desirable.
In Ad¬
private enterprise, creating the
conditions
System
M
•■>
sulted in Drawing
form
jobs
'i
»
The lessons
of the history of civilization and
industrial progress unmistakably
Boston & Maine Railroad
Stpd.
to
is to return
j
•
.
skill and intelligence.
NY 1-1843
Teletype
of
'
Considered
enact, re-
against which the whole
way
everyone
20 Pine Street,
we
spirit Of America is committed."
_
v
of the Federal Reserve System and Those of
the International Monetary Fund Are Similar, and Contends That
Because the International Monetary Fund "Breaks New Ground It is
accept
stroying
of Statism
Proposals
Functions and Operations
jecting
the
pauperizing,
strength-de¬
1952
6s,
National
& Co.
Member, Board of: Governors, Federal Reserve
1
the
of
u s n e ss
freely
*
Mr. Carter
Federal Official Points to Conditions Following Last War as
con-
which
Byrndun Corporation
Common
1
the
are
measures
Teletype NY
8y8tem
our¬
that
selves,
New York 5
Spring Street.
previously with G. Brashears
was
By M. S. SZYMCZAK*
-
Exchange
Carterhasjoined the
staff of Dean Witter »& Co., 634
V.
Bretton Woods
the
of
brow,
Vanderhoef & Robinson
CALIF.-—Ed¬
ANGELES,
LOS
ward
Federal Reserve and
we
that
—
sweat
$5 Preferred
Carter With Dean Witter
live by the
we
Telephone COrtlsndt
Admission of Mr. Reid to part¬
nership was previously reported
in the "Chronicle" of March 22.
the
proclaim
Collender Co.
Bell
partner in the firm.
m'ust^
"We
Brunswick Balke
31 Nassau Street,
individual initia¬
the merits of private enterprise,
and effort, Bernard M. Baruch said:
In acclaiming
Offerings Wanted
Reid, Jr., member of
Stock Exchange,
as a general
admitted
South
and Incentive."
and Less Opportunity
Members New York Curb
the Nineteenth Century May Be
Pine
30
Merle-Smith,
York
New
has ' been
Largely Ascribed to Encouragement of Free Enterprise. Says Regimen¬
tation Holds Back Production and Reduces Living Standards, and Pre¬
Is to Take Over the Task of Making Jobs,
We Can Look Forward to Unemployment, Regimentation, Higher Taxes
WOrth 2-4230
Bell
Is to Return to Freedom of
branch offices
Street, New York City, announce
the
Enterprise, Dr. Wright Quotes the Views of Hartley Withers,
John Stuart Mill and Herbert Spencer That Great Britain's Rapid Popu¬
our
Fergus Reid
&
Dick
NY 1-1557
NewOrleans, La.-Birmingham, Ala.
Direct wires to
Admit
Private
Preferred
&
Common
Dick & Merle-Smith
that Fergus
Standard Oil Kansas, Pfd.
Wilbar Suchard Choc.
Quoted
Members
NEW YORK 6, N. Y.
BROADWAY
US
Telephone BArclay 7-0100
Analysis
Co.
flfC pONNELL
Exchange and Other Principal Exchanges
Members IV. Y. Stock
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York
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I "
Canadian Securities Dep't.
Established 1920
New
A CO., INC.
5% Preference
NORANDA MINES
KING & KING
Nat'i
P. R. MALUM
CYAN AMID
STEEP ROCK IRON MINES
Chicago & So. Airlines
v
AMERICAN
BULOLO GOLD DREDGING
Industries
Great Amer.
Markets in U. S. FUjSDS for
QUEMONT MINING CORP. Ltd.
Inv. A
British Type
Thursday, March 29, 1945
FINANCIAL CHRONICLE
*An
of
before
in
the
development
century—1751 to 1851
—it rose to 21,185,000, an increase
(Continued on page 1377)
tically from the beginning.
Segal
Rohr Aircraft
Inter¬
estingly enough, the history of the
address
by' Mr.
Szymczak
Chicago Chapters of
American
Statistical
and
the
the
American Marketing
Associations,
Chicago, 111., March-21, 1945.
(Continued
on page
1390)
Gas
Associated
Electric
?
Corp.
New York Market
for
Int'l Detrola Corp.
Lock & Hardware
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Volume
THE COMMERCIAL &
Number 4372
161
The
COMMERCIAL
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Thursday, March 29, 1945
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soft
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Real Estate
Oil Agreement as an Example of How
CERTIFICATES
PRUDENCE BONDS
for
by
William
B.
Dana
Company
Reentered as second-class matter Feb¬
25, 1942, at the post office at New
York, N. Y., under the Act of March
3. 1879.
TITLE COMPANY
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"Super-State" Cartel Would
Destroy Competition, Preserve Regimentation and Override the Federal
Constitution in Its Operation,
Points OutrThat in Addition to Oil,
Cartels Are Contemplated for 60 Other Commodities in International
Trade, and Asserts That This Country Cannot Be Cartelized in Its Foreigri Trade and Free in Its Domestic Enterprise.
Says Cartels Are Not
Inevitable and That Competition Will Expand Our Foreign Trade.
i
publi
which
is
and
really good for
has
American
the
By ARTHUR A. BALLANTINE*
Guarantee to Every American
to
the
Right to a Desirable Job, It Will Result in Government Dictatorship
and Compulsion as to Jobs, and He Proposes as an Alternative the Basic
American Plan, Constantly Corrected and Improved, but Still True to
the Fundamentals of Freedom. Warns of the Greatest of All Monopolies
4~The Superstate.
The
the
Buckley Brothers in
Government
(Special
LOS
congenial .and
job. This most
Stock
other
Mr;
ager
coopera¬
of
m e r
for
Gov¬
i
c
ton
a n
Ballantine
A. A.
private enter¬
prise.
In the New
25,
I
Baker
was
and
W.
Robert
formerly
man¬
of the statistical department
Conrad,
&
&
Bruce
Co.,
Co.
was
Harris, Upham & Co., and Pacific
Company of California; Mr. Faer¬
ber
York Times of Feb.
presented
some
considera¬
with
Samuel
Franklin
B.
&
Co., and Bogardus, Frost & Ban¬
ning.
Mr.
Hudson was
with
Another
William" H. Jones & Co., and E. F.
correspondent of the Times found
Hutton & Co.
some fault with that presentation
on the ground that in my discus¬
sion I departed from just what
Mr. Wallace had said.
In fact, I
did not deal with what Mr. Wal¬
lace had to say about establishing
ah immediate controlled reservoir
(Special to The Financial Chronicle)
tions
e r s
*Stromberg-Car!son
v
&1;*-' W'.v*y
*
prophets of a brave, new world
on
this
Circular
J.
Howard
Pew
most
terrible war, we
have been jarred
the
Editors, at
dorf-Astoria
subject.
Request
Members
Ill
York
Hotel,/New
Wal¬
York
Security Dealers Assn.
Broadway,New York 6,N.Y.
REctor 2-5288
.
Paper
on
J.F.Reilly&Co.
New
ness
I
each twi¬
Mr. Pew before
the National Conference of Busi¬
the
• •
Bought—Sold
a new crop
*An address by
impact of the
world's
Rohr Aircraft
land
system.
Under
Internatiorml Detrola
Virtu¬
salvation.
dawn brings
light has seen unfolded new and
beguiling schemes whereby men
may live without The painful pro-
n e s s
industry
clearly
economic
our
Bell
System Teletype, NY 1-2480
Private
Wire
to
Los
Angeles
City, March 18, 1945.
(Continued on page 1382)
Bartgis Bros.
The
Billings & Spencer
Right to Be Politically Free
M. A. Hanna Co.
By CECIL B. DeMILLE*
Laclede-Christy Clay Prod.
President, Cecil B. DeMille Productions, Inc.
Explaining His Refusal to Submit to
Hooker
Tax Levied bv His Union to
a
Best Interests of the Nation.
Right to Be Politically Free Is the
Backbone of the Republic and That Joining a Union
Should Not Mean Giving Up the Rights of an Amer¬
ican Citizen.
bution Is
Warns That
Not
an
Liberty-Loving Citizens and
Members New
York Security
170 Broadway
/
Bell System
Dealers Ass'n.
COrtlandt 7-6190
Teletype NY 1-84
an
Issue
a
SUGAR
Man.
SECURITIES
why
I have been asked to tell you the reason
no
longer conduct the Radio Theatre of the air
for many
that
Sold
Hibiod
holds Unionism When It Is the Servant and Not the
I
—
Forced Election Contri¬
a
Issue of Unionism but
Master of the Working
Electrochemical
Bought
Few Un¬
scrupulous Men, Involving the Right to Work. Up¬
Between
and
with E. F. HutMr. Ellery was with
prior thereto
and
ernment
Faerber
have
Hudson to their staff.
through
tion
—
Angeles
Los
and
Exchanges,
J.
Fred
added,
hoped
could be made
A
d
u n
every
He Asserts the
added
Guy W. Baker, Eugene Ellery Jr.,
rantee,
the
CALIF.
Y.
Teletype NY 1-1203
war
Would Be Against the
Chronicle)
Financial
ANGELES,
Philadelphia
desirable
good
The
Buckley Brothers, 530 West Sixth
Street, members of the New York,
remunerative
he
to
h
Broadway
HAnover 2-8970
Support Political Action, Mr. DeMille Contends That to Have Complied
Would Have Destroyed His Political Freedom and
L. A. Add to Staff
every
American
values
bus i
of
In
should guar¬
with
39
New York 6, N.
an
bill
rights" the
gua
Members Neto York Security Dealers Assn.
spcial^ economic
in the future. Virtually
segments
of the thoughts presented by Mr. Henry A. Wallace to
Commerce Committee before his confirmation was that
Senate
economic
antee to
of
that
so
our
economic
our
ally
core
under
of
ship,
all
from
in the hope that there¬
may be brought to
a speedier conclusion.
Many peo¬
ple would stoop to use the war to
impose their panaceas on us for
leader¬
may
§tating With Reference to Mr. Wallace's "Economic Bill of Rights" That
On Its Face, Economic Planning Seems Highly Logical, Mr. Ballantine
Maintains That FuH Development of Economic Planning Is a Socialist
QUOTED
L J. GOLDWATER X CO:
political moorings. Emotion
replaced reason. Expediency
the
by
the
is
and
Former Under Secretary*of the Treasury
-
Complete Statistical Information
is adopted
business.
wise
Holds That if Government Is
loose
and
c,
Jhat
responsibility
of
providing
Economy
SOLD
•
| We are here tonight as representatives of the. trade press. As such
our responsibility to advocate those measures which are good for
Ours
Planned
BOUGHT
the1 American
people is good
Mr. Wallace and
a
it is
for
State.
CERTIFICATES
Copyright
1945
TITLE COMPANY
By J. HOWARD PEW*
President, Sun Oil Company
Maintaining Strongly That Cartels in Any Form Threaten American Free
Competitive Enterprise, Mr. Pew Refers to the Proposed Anglo-American
ruary
Specializes in
us
Cartels Imperil Economic Progress
Other Offices: 135 S. La Salle St.;
Chicago 3, 111. (Telephone: State 0613);
1 Drapers' Gardens, London, E. C., Eng-:
land, c/o Edwards & Smith.
Securities Department
Call
Monday
(complete statistical issue*—market quo¬
tation
records,
corporation,
banking,
cleairtngs, state and city news, etc.)
Harrison 2075
-
Teletype NY 1-832. 834
Our
and every
Dealers Asa'n
years
has brought good drama to
millions of Americans. It may be of little
importance to anyone but me that I no longer
conduct this theatre, but it is of vital importance
many
to
every
woman
man,
and child in this nation
DUNNE & CO.
Cecil b. DeMille
DeMille at the St. Patrick Day luncheon given in his honor
by W. M. Jetters, President of the Union Pacific Railroad, at Omaha, Nebr., March 17,
)
*An address by Mr.
1945.
/
1 (Continued on page 1394)
-
Members New York Security Dealers Assn.
25
'
.
Broad
WHitehall
St., New York U, N. Y.
3-0272—
Private
Wire
Teletype NY 1-956
to Boston
Meader FSefcher With
jobs. What seems important to
me
is the full implication of a
Government guarantee of jobs—
the economic bill of rights.' Mr.
Wallace did not discuss the ulti¬
mate
results' of
that
proposal,
taken seriously. The end result is
so-called "economic planning.",
of
a
al
Remarks by Mr. Ballantine at
meeting of the Wcfmen's Nation¬
Republican Club, New York
City, March 20, 1945.
(Continued
on page
1383)
f
Meader Fletcher has become asso¬
ciated with Davis, Skaggs
211
of
Francisco
San
the
change.
Mr.
bank
trader
& Co.,
for
Fletcher
and
Stock
was
—
1943 $4.50
—
National Radiator Co.
1942 $3.65
Industrial Finance
Preferred
on
request
for¬
Shaw, Hooker &
officer of Brush,
DIVIDENDS:
$2.75
Circular
Co.;
the past was
Slocumb & Co.
C. E. Unterberg &
HoixRoseSTrqster,
insurance stock
Bruce & Co., and in
& Trust Co.
1945—$.75
Approximate selling price—29
Ex¬
prior thereto he^was with Conrad,
an
1944
Montgomery Street, members
merly
*
Dividend paid January 15,
FRANCISCO," CALIF.—
SAN
Public National Bank
panama coca-cola
Davis, Skaggs & Go.
Established 1914
V
74
Members
:
'
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400
Teletype: NY 1-375
61
N.
Y.
Co.
Security Dealers 4s®'#
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3568
Teletype NY 1-1666
i
'<
»■
t
Thursday, March 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
1372
BOSTON, MASS.
Associated Gas & Elec.
Foundation Company
Company
reconstruction, domestic
public works development,
established company in the field of heavy con¬
faces an attractive outlook.
In the Post-War Era of European
this well
struction
Memorandum
on
Members New York
Boston &
Stock Exchange
Members Chicago
Maine, Pfds.*
Automatics, Inc.
■
"Issues'*
& CO.
Stock Exchange
>
New York Curb Exchange (Associate)
Teletype
Bell System
J.K.Rice,Jr.&Co.
National
Established 1908
NY 1-1092
—
Members
Service Cos.
v
Wire to Chicago Office
Private
Eljc.
Corporation
STREET, NEW YORK 5, N. Y.
40 WALL
Bowser, Inc.*
Request
Associated Gas &
Nashewena Mill
illflRITER
American Reserve Ins.
Johnson
industry and
reconversion of
REctor
Bell
Com. & Pfd.
Brockway Motor*
N.
Y.
Security Dealers Assn.
2-4500—120
Broadway
System Teletype N. Y.
1-714
Delta Airlines
Detroit Harvester*
Douglas Shoe, Com. & Pfd.*
Electrolux
du
General Machinery
We take
Michigan Chemical
Mohawk Rubber*
?
Pont, Horsey Co.
pleasure in announcing that
Shawmut
Bank Building
■
BOSTON 9, MASS.
HaroM H. Young
Capitol
Teletype
4330
BS 424
Taca Airways
has become associated with
Moore-McCormack
in
us
our
We Suggests
Pollak Mfg.
New York Office.
.
A Low-Priced Steel Stock
ESTABLISHED 1935
Central Iron & Steel?
Security Adjustment Corp.
Purolator*
i
Scovill
Mfg.*
Corporation*
Triumph Explosives
United Piece Dye Works*
Whiting Corp.
Wickwire-Spencer
^*
i
r
vT-
v
•
Sheraton
Eastman, Dillon
MEMBERS
NEW
Co.
&
Net
Quick
Book
EXCHANGE
YORK STOCK
j Members New York Security Dealers Ass'n
$10 Par
per
share
PHILADELPHIA
March 26,1945,
Gruen
LERNER 8c CO.
Aetna Standard Eng.
10
I
Glass, Com. & Pfd..
Bird & Son*
!
Company
General Industries Co.
W. J.
Banigan & Co.
Successors
N.
;
50
Broadway, N. Y. 4
HAnover 2-8380
30
Pine Street,- New York 5, NjfY
Tel. Digby 4-7900
,
E. Harold Schoonmaker
Alabama Mills*
Concludes "We Should Now Be in
Aspinook Corp.
Spinning*
Laws of
In
Analyses
Missouri
Public Service Corp.
Club
Merrimac Mills
E.
New
delivered
before
Schoonmaker,
Jersey Worsted*
of
Utilities
believe
by
that
views
recently
experts who
some
have
Iowa Southern Util.
of
Jer¬
League,
Southwest Natural Gas
other
•
,
*
•
•
Federal
I V.7
officials,
£. H. Schoonmaker
rates
r
ratio
of
Reserve
controls
governmental
regulations.
l
i
SfVi
subject of Postwar Inter¬
a matter of deep con¬
to you as the managers of
other
peoples
Schoonmaker
told
money,"
his
"Much has been said
on
BROADWAY, NEW YORK 5
j:?J™
and Phila.
ENTERPRISE 'PHONES
Bos. 2100
Mr.
audience.
and written
this topic in recent months and
money
managers
have
a
lively
interest in this question which so
vitally affects their business.
"I
have
accumulated
consider¬
able material for your considera¬
tion,"
would
he
like
concluded,
to
present
to
me
Ratio
the money
est Rates is
cern
Members N. Y. Security Dealers Assn.
seemed
and
that
the
not
Empire Steel Corp.
"which I
in three
Regarding
NEW ORLEANS
"these figures
dicate that
a
period
Whether
will
1.
of
advance
pends
on
How
would certainly in¬
we
or
Mr.
that
concludes
should
high
money
when
it
money
seems
several
now
to
me
de¬
government
controls stave off the working of
long
can
the laws of supply and demand?^
2. How much gold will we lose
in the
postwa'r period?
& com.
Byllesby & Company
OFFICE
Stock Exchange Bldg. Phila. 2
7% Preferred Stock
Phone Rittenhouse 3717
Teletype PH 73
Year
17th
Uninterrupted Dividends
ST. LOUIS
Morrison Cafeterias
Common
Dividends Various Amounts
Since 1936
Stix & Co.
Baumann
Investment
412 Carondelet
New
Bldg.
Company
Tel. RAymond 1449
Orleans
12, La.
>
INVESTMENT
509
3. Will
the
government
lower
gold content- of the dollar
further, thereby increasing the
gold reserve?
the
the war last?
5. When will individuals dimin-
4. How long will
(Continued
on page
SECURITIES
.
rates.
factors:
Issues
PHILADELPHIA
Morrison Cafeterias
be in
rates
All
H. M.
Federal
tabulation,
his
com.
Pittsburgh Railways Co.
Wawaset Securities
market."
Schoonmaker
Fractions
,
,.
the
sensitive
&
Warner Co. pfd.
currency
was
Lots
Office, Buhl Bldg.
Detroit
some
enough to stresses and strains in
"The
,-:XX
,
some
Schoonmaker
and
-w'
Exchange
Tele. GR 184
Phone 94336
circula¬
time,"
Mr.
remarked, "it has
gold to
"For
tion.
T
,nj
credit
Reserve
without
j
Detroit Stock
GRAND RAPIDS 2, MICH.
showing among
things the ratio of gold to
rates should ?inow be
high if there were a freej market
request
Members
ulation of figures,
that money
Mallory*
white, noble & co.
presented the accompanying tab¬
ysis of factors
Magna vox Corp.*
Majestic Radio & Tel.*
Odd
conflicting views of
ex¬
determining
and
Dealer Inquiries Invited
Botany Worsted Mills pfd. & A
lished in the "Chronicle" and then
interest
Y. C.
American Box Board Co.
of which have been already pub¬
from his anal¬
Du Mont Lab. "A"*
NY
conclusions."
a
American Box Board Com.
you
the
conclusion
Emerson Radio
upon
which
from
ernment and bank
pressed
ELECTRONICS
1962
several financial writers and gov¬
Loan
Peoples Lt. & Pow. Pfd.
assembled
versant
Savings
and
PH 30
Phone to N.
Private
Aeronca Aircraft Com. & Pfd.
Mr. Schoonmaker then read di-
Policy
the New
St., Philadelphia 3
Pennypacker 8200
Buffalo
COrtlandt 7-1202
present
will draw your own
Eco¬
Committee
sey
Mates, Pr. & Lt. $2 Pfd.*
3s-5s of
will
rates
Sav¬
the
of
|
International Rys. of
1606 Walnut
13,
low money
continue; second, the
thoughts of others who feel that
money rates
will advance; and
third, some facts and figures I
nomic
Buff. 6024
March
Association
Conn. Lt. & Pr. Com,
to Chicago
on
and Chairman
Cons. Elec. & Gas Pfd.
Wires
the
first,
expressed
f
ings and Loan
Utility Sfyg't
REctor 2-8700
Savings and Loan Managers'
BOENNING & CO.
Simplex Paper Corp. Com.
Central Steel & Wire
Tenafly
Mutual
American Gas & Power
Central Elec. & Gas
Circular
the
parts;
Executive
o
x.
GRAND RAPIDS
Harold
the
Central & Southwest'
DETROIT 26
Period of High Rates, but Govern¬
May Stave Off the Working of the
Metropolitan New York in the Hotel Astor,
Secretary
UTILITIES
Hartf'd 6111
Common
Cadillac 5752
Buhl Bldg.
^S"':';;:$T:Pfd;::;;iSy|
Supply and Demand/'
address
Darlington Mfg. 1
Direct
between
a
Controls and Other Factors
ment
Consolidated Textile
120
System
& Dolphyn
Post-War Interest Kate Factors
i
Wire
Members Detroit Stock Exchange
Standard Stoker
iff
Telephone—WHitehall 3-7253
Private
Mercier, McDowell
Tele. NY 1-1790
Philip Carey
Riley Stoker*
x
Y.
Members New York Security Dealers Assn.
1904
Established
Liberty Aircraft Products*
...
Los Angeles
Hagerstown, Md.
BERWALD & CO.
to
CHAS. H. JONES & CO.
Moxie*
or
Street, Philadelphia 2
Pittsburgh, Pa.
Philadelphia, New York and Los Angeles
Lawrence Port. Cement*
Bulletin
York, Philadelphia and
New York
Report furnished on request
Lamson & Sessions*
*
New
Los Angeles Stock Exchanges
1529 Walnut
Harrington & Richardson "A"
Howard Stores
Central Public
request
BUCKLEY BROTHERS
pfd. and A & B
Gleaner Harvester*
Berkshire Fine
Telephone Com.
Teletype BS 69
DETROIT
Community Water Service pfd.
Bought—Sold—Quoted
Great Am. Industries*
Corporation, Common
Western Light &
Members
H. M. Byllesby
Watch, Common
Memo on
Eastern Corporation
Co., Inc.
Deep Rock Oil*
P. R.
SQUARE
BOSTON 9, MASS.
Spokane Internat'l Ry. Rcpts.
-American Arch
Buda Co.*
Eastern
POST OFFICE
Tel. HUB 1990
Am. Window
Blair &
TR. 5-5054
Circular Available
INDUSTRIALS
American Hardware*
St., B'klyn 2, New York
share
about 6
.
.
per
$16.34
Value
Market
16 Court
$7.16
.
1394)
OLIVE
STREEIT
St.Louis l.Ho.
Members St.
Louis Stock
Exchange
I
I
Volume
THE COMMERCIAL & FINANCIAL
Number 4372
161
We take
WE
pleasure in announcing that
CHRONICLE
WISH TO ANNOUNCE
1373
THAT
EFFECTIVE APRIL 2, 1945
FERGUS REID,
Member New York Stock
Jr.
The Name of Our Company
Exchange
Will Be Changed From
Anglo-Huronian, Ltd.
y
Bulolo Gold Dredging
W. R. BULL & COMPANY
has been admitted
as a
INCORPORATED
Giant Yellowknife Gold Mines
>.•
;
,
Hollinger Mines
'
General Partner in
V
*
v
l*"''"''A
V
~ J',I
"/ '
^*
firm
our
Kerr Addison
: 0" 'v.V-
'r>^'
(
TO
SMITH, RAMSAY & COMPANY
INCORPORATED
DICK & MERLE-SMITH
Members New York Stock
5,N.V;
Noranda Mines
INVESTMENT BANKERS
Exchange
207 State
30 State Street
30 Pine Street
New York
Mining Corp. of Canada
•
Boston 9, Mass.
157 Church
Steep Rock Iron Mines Ltd.
Street, Bridgeport 1, Conn.
Teck Hughes Gold Mines Ltd.
499 Howe Ave., Shelton
St., New Haven 10
March 23,1945.
Ventures Ltd.
This Represents no
HART SMITH & CO
Change in Management, Policy or Personnel
52
OUR
AMERICAN BANTAM CAR
ANDREW
JOSEPH E. MILLER
R.
SMITH
(Arrears $3.75)
The
Directors Have Been With
the Company
•
Toronto
Community Water Service
'5V2s-6s
V
Selling Price—14% \
on
Montreal
Average of 22 Years
an
(callable at 14 plus arrears)
Circular
HAnover 2-09M
Teletype NY 1-395
New York
RALPH L. TALBOT
THOMAS H. TRELEASE
Dividend of 300 paid Jan. 31, 1945
par
St., N. Y. 5
Bell
■T
DeWITT C. RAMSAY
WILLIAM R. BULL
6% CUMULATIVE CONV. PREFERRED
$10
WILLIAM
OF DIRECTORS
BOARD
y
1946
'
:,yy
Crescent Public Service 6s 1954
Request
East Coast Public Service
4s
HoitR6SE§l]R9Sim
1
Foundation
Trinity Place, New York 6, N. Y.
Company
Issues
|
Circular
^'
*
,
y
' t
\(
r
<
\
1
1 ;
•!
'
**
Frederic H. Hatch & Co.
Incorporated
■
,
Incorporated
Members N.
Y.
Security Dealers Ass'n
*
63 Wall Street
Preferred Stock
y
(Par Value $2)
Broad
41
■
Members New
York Security Dealers Association
Street, New York 4
New York 5, N. y.
Bell Teletype NY
Circular upon Request
WE BUY'
Joseph McManus & Co.
George R. Cooley & Co.
Sees Russia
Established
1924
.
St*, New York 5, N. Yi
William
52
New York 6
WHitehall 4-3990
Teletype NY 1-1610
Teletype NY 1-2419
A. W. Zelomek Points to Practically Unlimited
.
Quantities of Capital
Goods
Required by Russia, Much to Be Provided by Loans, and Con¬
cludes That United States and Canada Exporters Have Right to Be
Optimistic
Yuba Consolidated
on
Trade With Russia.
Analysis
tical
or
call for
Co., Inc.
79 Wall St., New York 5, N.
F
Y.
Telephone HAnover 2-8681
170 Pine Street, New York 5, N.Y. I
of Ster-
National Bank & Trust Co.
innounces the election of Charles
Somlo as Vice-President. He will
#
be in charge
ing
LOS
Lee
fus
fices
to
quarters at the
bank's
main
office
at
Carter
National
search Corp., and Massachusetts
Distributors; in the past he wras
39th
and
Keystone
Mr.
McKellar
had broad
Miller
this
coun¬
try and abroad
&
trade
and
foreign
exchange.
local
merly AVicePresidont
Charles Somlo
the
urers
Trust
Co.
in
of its
forces of this century are
to
Pur-
California; in
he was in charge of the
and
of Blyth
was
McKellar
Clarke
a
principal
&
Co.,
& Co., Inc.,
of
and
Welch,
Young-
the
an
follow¬
ation
the
ing
last
What is
While
Division
Foreign Funds
the U.
S.
of
present
size
Zelomek
of
the
this war.
Few of us
much concerned with
Russia just before this war be¬
gan; the great change that has
occurred has, I believe, a deep
meaning for the lives of all of us.
very
its
nomic
resources,
its
traditional
orientation and its political
real¬
•
Members
63 Wall
N.
Incorporated
Y.
Security Dealers Ass'n
New York 5,
Street
Bell
Teletype
NY
1-897
n. y.
'
greatly on
of foreign
nature
HAYTIAN
Russian
There is not much doubt
Quotations Upon Request
som^credjts will be granted.
that
"One
for the nation which, by vir¬
of its geographical position,
ethnological makeup, its eco¬
that
depend
will
size^and
credits.
after
be
statements
imports
the
political devel¬
perceptible shift from West to
East of the world's economic cen¬
ter of gravity.
What is now being
secured is a safe western anchor¬
Frederic H. Hatch & Co.
Zelomek warned
opment of recent months has been
a steady expansion of Russian in¬
fluence westward in Europe is no
contradiction of the fact that the
great outcome of this war will
Ohio Match Co.
Russian
ofifcial
W.
Eastern Sugar
Associates, Common
emphasizing the potential
were
"That the major
Products Co.
she
con¬
preceding
a.
slightly
shocking is that it is also a change
from
the situation immediately
tue
Control
in
market, Mr.
against going to
the other extreme of counting too
heavily on Russia in terms of
post-war trade.
It is clear from
war.
American Maize
po¬
flict, draws additional importance
from the fact that she is, so to
speak, astride this great historical
y1: f
development."
ob¬
Teletype NY 1-956
Europe and to lead to
developments in Asia.
Rus¬
the strength
change
Exchange
of
apart from
age
& Co.
he served with the
traditional
y'Vyy
St., New York 5, N. Y.
Digby 4-70(10
political
tending
revealed
a
office
the
undermine
sition
new
Asso-
o n
1 Wall
most
has
Revel
Wulff &
Franklin
preign department. More recently Treasury in Washington.
Funds.
of
Manufac-
charge
with
was
Pacific Company, of
the past
He was for¬
Co.,
Custodian
Corp.,
Co., M. H. Lewis & Co., ahd the
in the field of
foreign
Sales
Street
Broad
Street.
in
with
investment busi¬
was
formerly
Securities. & Re¬
Mr.
.
with
Mr. Somlo has
both
H.
National
formed
world's
that the great social and
from the situ¬
of¬
634 South Spring Street,
at
with
perience
Daniel
Distributors,
the
sia,
t i
a
"This is
Chronicle)
and
in
of
i
vious
engage in an
ness.
Broadway and
ex¬
Financial
have
Securities
department,
The
Carter
McKellar
of the foreign
head¬
to
yv.:''y
GUDE, WlNMILL & CO.
and
Montreal.
c
ANGELES, CALIF.—Ru-
.
with
the
Agents
Form Nai'l Series
Oislribuiors in L.
The Board of Directors
h i 1 d
r c
chasing
(Special
•
highly industrialized nations, I be¬
lieve we must recognize the fact
of
Publications,
who spoke be¬
fore
Digby 4-3383
Chas. Somlo Y.-P. of
i
a
institutions
and
economist
F. BLEIBTREU &
CARTWRIGHT & PARMELEE
Coupons Missing
be to estab¬
political
may
commercial
lished
Bureau,
Inc.,
descriptive circular
disturbing they
Statis¬
tional
Dividends
Write
political, future cannot be discussed
intelligently without considering Russia's place, according to A. W.
Zelomek,
.<$u
ism is destined to play a major
President
of
part in Asiatic affairs. However
the
Interna¬
request
upon
Long-
\
WITH
Members New York.Stock
Consolidated Mining
Uninterrupted
on
Term Political Stabilization.
Benguet
The world's economic and
36th Year
Says Much Will Depend
-'yy
BONDS
In World Trade
*
Chicago Stock Exchange
Digby 4-3122
Important Factoi
an
INC.
York Curb Exchange
39 Broadway
'
l-«97
HAnover 2-2100
Bought—Sold—Quoted
HEANEY, Mgr.
WALTER KANE, Asst. Mgr.
Members New
;
Consols
-J
'
-
,
'
Securities Co. of N. Y.
4%
'
vi *
Seligman, Lu bet kin & Co.
Guenther Law, Inc.
Securities
>
request
upon
i
Albert Frank-
Curb and Unlisted
MICHAEL
y,
5%s '51
Minneapolis & St. Louis Ry.
Common Stock
Teletype: NY 1-375
Telephone: BOwling Green 9-7400
,y.
.
Established 1914
74
1948
Eastern Minnesota Pr.
6f; the
the
world's
war
major goals
will be
restoration
of
political stability. Such an at¬
tempt is almost bound, to be sup¬
ported by loans and economic aid.
Recent
international
indicate
that
the
conferences
United
States
&
FAR It
Members
York
New
Stock
New York Coffee &
120 WALL ST.,
v
,
-
CO.
"
j
'
Exchange
Sugar Exchdnge
NEW TOKK
TEL HANOVER 2-9612
i
will take the lead in this, at least
during the early post-war period.
If the United States grants longterm
credits
to
Russia,
other
countries will
example.
that
these
no
doubt follow this
But I doubt very much
credits
(Continued
will
on page
reach the
1386) '
With F. L. Putnam & Co.
(Special
to
The Financial
PORTLAND,
Iloffses
is
Putnam
&
Street.
Chronicle),;'?'
ME.—Gorhaim D.
affiliated
with
F. ;-X.
Co., Inc., 97 Exchange
I!
THE COMMERCIAL & FINANCIAL
1374
We maintain an
Trading Markets In
>
Central Electric & Gas
Our
C. L. Schmidt & Co.
CHICAGO
Incorporated
Central Steel & Wire Co., com.
C. G. Conn Ltd. common
Leece Neville Co.
Locomotive Firebox
pfd.
Western Lt. & Tel. common
Dealer-Broker Investment
DULLES *
By JOHN FOSTER
Mr. Dulles Traces the
Trend Toward Allied Cooperation From the Yalta
Agreements and Points Out the Progress in Planning a World Peace
Organization and in Creating an Overwhelming Sentiment of the Amer¬
ican People for It.
Points Out the Imperfections of the Dumbarton
Oaks and the Yalta Plans, and Suggests Two Changes, viz.: (1) That
the Organization
Be Infused With an Active Principle and Not Be Merely
Judge the Merits of Situations Threat¬
Mechanistic in Action but Should
Recommendations and Literature
It
is
Fred J. Cook
—
Clement, Curtis & Co.
Exch. and Others
Y. Stock
Members N.
interested
Teletype CG 214
persp e c
J FredJ.FairmanCo.L
Members
Stock
praise
Board of Trade
of
San Francisco.
task
that
is not the aca¬
demic
Market*
Firm Trading
Corporation
task of taking
over
4, ILLINOIS
CHICAGO
Randolph
Telephone
Bell
ST.
going
a
that
recall
4068
at
Moscow
the
CO 537
System
Conf
e r e n c e
John F- Dulles
the Big Three
decided
Kroehler Mfg.
"closest
Common
to
ence
to establish at once the
cooperation" with refer¬
European questions. They
later on, a
also decided to create,
Chicago Corp. Common
general international organization.
Those two decisions were inter¬
Consolidated Cement "A"
Eden
ex¬
plained that to Parliament.
He
Anthony
dependent.
E. H. Rollins & Sons
pointed out that unless coopera¬
tion
Incorporated
3
*
'
Direct
Central 7540
'
■
Wires
Principal
To
Our
In
Throughout
Cities
the
Offices
Country
be
established at
hard
immediate
the
CHICAGO
CG 530
were
would
South La Salle Street,
135
upon
once
it
it
"when
common
effort
to
get
needed for victory is
over."
it, were aroused.
If three na¬
tions, faced by common peril,
could not make good on an agree¬
ment to cooperate, what was the
use, they said, of getting 40 na¬
tions to agree to co6peratefvafter
the common peril had passed.
Roosevelt
President
nizance of the
public
Weeks,
took
cog¬
concern.
In
the
by
Public
&
Washington, D. C.,
tions Forum, at
on
Wire,
contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
If
ycu
Appliance,
Com.
Snap-On Tools, Com.
Cecil
Woodward Governor, Com. >
with
ner
ymii ILDavis &<90.
Established
to
The
Financial
BEVERLY
1916
J.
&
is
now
affiliated
Lynch, Pierce, Fen-
Beane, 9520
Mr.
Boulevard.
CALIF.—
HILLS,
Downs
Merrill
(Special to
Chronicle)
Santa Monica
Downs
was
St., Chicago 3
Teletype CG 405
Tel. Franklin 8622
Indianapolis, bid.
Rockford, 111.
-
LOS
ton
the
639
B.
The
Financial
ANGELES,
Elliott
staff
South
of
has
Member, National Association
Mutual Life Insurance Co. of New
York
a
the
income level after the war—R. W.
Pressprich
_Co.,
&
Douglas, Pres¬
Harry
CALIF.—Lin¬
added
Akin-Lambert
Borden
J.
Bastion
have
Co.,
G.
and
the
joined
to
Brashears
Co.,
&
Roy
Mr.
reorganization by
and those under
Letter
Carter
of
209
South
Harrison
H.
Street,
Salle
La
&
510
Chart—A
vice
versa,
Talbot,
519
based on Revenue
California
Street,
retire
Alabama Great Southern RR.—
circular — Adams &
Peck, 63 Wall Street, New York 5,
&
this
Bantam
after
years of
April
38
1
Car—Circu¬
situation—Hoit,
A
graduate
of Brown Uni¬
Rose
he
—
Trust
was
135 La Salle St.
Long-Bell Lumber
Common
New
now
Randolph 3002
joined The Mutual Life in March,
1943, as administrative assistant
to the Executive Vice-President.
December, 1944, he was
In
Trinity 3908
Certificates
AGGREGATING
Have
Estates,
Pensions.
SELECT FROM
•
BOARD
OF
TRADE
141 W. JACKSON BLVD.,
CHICAGO
Tel. WAB. 8686 and Western Union Telephone
'
'
231 So. La Sal!e St.
"
request
Dearborn 1501
Teletype CG 257
Tele. CG 640, 641 & 642
r
Savings
&
Loan
Represented—
Federally
Associations about 400
on
CHICAGO 4
4
OUR,tlST£*K8^LjiCF
?rbUR;FUNbS DIRECT -^NG'FEE*
four page brochure
COM STOCK & CO.
BUILDING
$25,000,000.00
been
purchased
thru
us
by
Companies, Trust Departments,
located
Kneeland «& Co.
"\
named
Comptroller.
Associate
in
MARKET
CG 362
He
appointed Auditor.
available
MISSOURI PACIFIC RY. SEC. 5%%
650 S. Spring St.
with
Louis, where he
of St.
Co.
later
Special
Post War Stock
MOHAWK RUBBER CO.
LOS ANGELES 14
until 1939,
associated
became
try, offer
CHICAGO 3
Trust
Bankers
the
with
served
Co. in New York City
To Yield...
Pacific Coast
DISTRIBUTION
Hughes
McCall
Federally Insured
Hardware
An Outstanding
„
SECONDARY
J.
versity in 1933,
Hughes
Mf.
N. Y.
American
ROHR AIRCRAFT CORP.
For
with
company.
Troster, 74 Trinity Place, New
York 6,
INTERNATIONAL DETROLA CO.
UNDERWRITERS
of
as
the Mercantile Commerce Bank &
Descriptive
on
Pdttrr
»
will
troller,
when
4, Calif.
.id.
'
W.
the
present Comp¬
chart
reference
approximate equivalent tax¬
able income from tax-free yields,
that
Miller,
Trust
.of Securities Dealers
an¬
Frederick
South
Spring Street.
Spring Street.
Douglas
service
for
American
E.
trus¬
also
negotiation—in the March Chicago
lar
staff of
com¬
pany's
nounced
Bateman,
CALIF.
follow¬
meeting
ident,
William
68
New York.
ANGELES,
W.
tees.;
San Francisco
South Spring
announced by Lewis
was
of
MISSISSIPPI GLASS CO.
'
Wholesale Distributors
—
Hughes Comptroller
ing
(Special to The Financial Chronicle)
Chronicle)
been
Co., 453
Steel—Bulletin
&
developments—Lerner
(Continued on page 1397)
the
period
1941-1944,
showing the substantial portion of
earnings which 28 major railroad
systems have devoted to fortify¬
ing them against a potential lower
J
CARTER H.C0RBREY& CO.
Middle West
Company
and
covering
&
pre¬
viously with E. F. Hutton & Co.
(Special to
with
is
Landor
Eichler &
Street.
LOS
Stock Exchanges
Chicago Board of Trade
Members Principal
10 So. La Salle
Bond Pur¬
Retirements—Booklet
Railroad
chases
LOS ANGELES, CALIF.—Wal-:
ter
Iron
The appointment of J. McCall
Hughes as Comptroller of The
Acts of 1943 and 1944—Hannaford
The Financial Chronicle)
&
New
Broadway,
Preferred
"The
of
issue
1945,
Stock Guide."
or
Ptg. Co. 6-1963
Trust
&
Bissell
recent
the
Com.
120
Central
on
,
(Special
Parker
Meeds,
Laird,
—
March,
the
is
available
Also
Chicago 4, 111.
(Continued on page 1396)
Hanover Bank
Bulletin
available to
now
New York.
Co.,
March 26, 1945.
The two Moscow decisions cre¬
Globe Steel Tubes Co. Com.
Lincoln
stocks
public—G. A. Saxton & Co.,
Inc., 70 Pine Street, New York 5,
—Comparative tabulation of data
on solvent and insolvent railroads
further
Wall
the
Discussion
before the United Na¬
Central
—
tabulation of operating company
common
1947—
plan—Greene & Co., 37
Street, New York 5, N. Y.
Stocks
Common
at
Broker-Dealer Personnel Items
Steel
Utility
Solvent and Insolvent Railroads
March 17, 1945,? and a
discussion
Boston Terminal 3V2S of
Analytical report describing reor¬
ganization
status and proposed
York 5, N. Y.
5, N. Y.
Association,
Luncheon
York
Dulles
Mr.
Policy
Foreign
New
on
address
Co.,
selling near their con¬
Street, New York 5, N. Y.
*An
Analysis — F.
Inc.,
79 Wall
—
Stocks—
—A discussion of these issues and
a
Consolidated
Mining
Bleibtreu &
Street, New
Benguet
Co.
cur¬
points — Hornblower
&
40
Wall
Street,
New
version
Tax
Central
of
Companies—List
A list of 17
York
115
Co.,
York 5, N. Y.
Convertible Preferred
crises
Greek
and
brought to light that contrast be¬
tween theory and practice.
The
American people, when they saw
will
You
great
powers
agreed, in
had
Moscow
Polish
The
concern.
208 SOUTH LA SALLE
at
three
the
the "closest coopera¬
tion," reverted to a practice of
divided responsibility.
is
practical
the
Magnavox Common
one
theory,
it
Rather,
is
Thus
good
a
was
which
of
one
writing
world charter.
Garrett
Geyer &
67 Wall Street, New York
quotations—F. B. Whittemore,
60
Broad
Street,
New
York 4, N. Y.
But
quickly demonstrated that
thing to agree to cb-'
operate and another thing to do
it.
The United States held aloof.
Responsibility " was apportioned,
in large part to the Soviet Union
and in small part to Great Britain.
it
it
better
task
the
gratification.
immense
ated
ap¬
For
Exchange
Chicago
Chicago
starting, not with Yalta, but with Moscow
t i ve
can
we
I shall,
Francisco."
topic is "From Yalta to San
In that
1943.
| SINCE 19081
Results—Huff,
rent
however, take the liberty of
in the Fall of
&
of 1944
Casualty Insurance Op¬
Fire and
Coal
study—Goodbody
banks— Broadway, New York 6, N. Y.
38
of
Also available a tabulation
Start but Does Not Go Far Enough.
134 S. LA SALLE ST.
Randolph 6800
analysis
parative
parties the following literature:
Evaluator—Com¬
Stock
Bank
ening Peace, and (2) That the Veto Power of the "Big Five" Be Aban¬ Hecht.
doned so That Rigidities That Imperil the Whole Peace Structure Be
5, N. Y.
Removed.
In Washington Address, Says Dumbarton Oaks Is a Good
The asigned
CHICAGO 3
the firms mentioned will be pleased to send
understood that
erating
W. I. Sennott, Jr.
Pittsburgh
Philadelphia
New York
From Yalta to San Francisco
Ampco Metal, common
Teletype CG273
Minneapolis
Telephone State 8711
Teletype CG 864
Telephone Dearborn 1421
Central Electric & Gas, common
United Stockyards Corp.,
CHICAGO 4, ILL.
209 SO. LA SALLE ST.,
3
Byllesby and Company
135 So. La Salle Street, Chicago 3
Members Chicago Stock Exchange
Tele. CG 271
Tel. Randolph 6960
H. M.
SILLS, MINTON & COMPANY, Inc.
1922
Salle Street
120 South La
MOUNTAIN STATES POWER Common & Pfd.
Common
Request
Current Bulletins Available on
DEEP ROCK OIL CORP, Common
„
Manufacturing Common
Soss
—We Maintain Active Markets In—
NORTHERN STATES POWER 6 & 7 Pfds.
Maryland Casualty Common
Chicago South Shore and South Bend R. R.
United Stockyards Pfd.
'.Established
<
Neville Common
Leece
Co.
Dexter
active interest in
Puget Sound Power and Light Common
Ampco Metals Common
Bros.
Bunte
Thursday, March 29, 1945
CHRONICLE
Insured
of the Coun¬
Liquidity, Insured safety of
Principal, complete
freedom from marsection
every
_
_
FINANCIAL
NO! INC.
/
J
bet lossesf
•
f*
*
^L/evelopment to.
105 SO.
LA SALLE ST..
CHICAGO 3
THE COMMERCIAL & FINANCIAL
.Volume 161., Number 4372
Burton-Dixie Corporation
Collins Radio
1375
CHRONICLE
Common
We have
a
Chicago South Shore & South Bend R. R. Common
Galvin Mfg.
Sprague Electric Co. Common
Stromberg Carlson
r
continuing interest in the following:
American
>
Barge Lines Co. Common
American Service Co. $3.00 Part.
Chicago, Milwaukee & Gary Ry. First 5s Apr. 1948
Anheuser Busch Inc.
Chicago Railways First 5s Feb. 1927
Fulton Iron
Pfd.
Capital
Works, Common & Pfd.
Mastic-Asphalt Co. Common
KITCHEN &€0.
DOYLE, O'CONNOR & CO.
Chicago 3, III.
(ST.
Bonds
*!'
Seven-Up Bottling Co. Common & Pfd.
CG 1200
Teletype:
Dearborn 9600
LOUIS)
Puget Sound Power & Light Co. Common
135 SOUTH LA SALLE STREET
Telephone:
Tele,XG 573
Tel. STAte 4950
New Jefferson Hotel Co. 4-6%
;
INCORPORATED
'135 South La Salle Street
<st.
■
yyv/yy-
louis)
Textron Inc. Warrants
Slates
Why Monetary
Trailmobile Co. Common
Fund Is Essential
In an address
monwealth Club
r
NSTA Notes
before the Com¬
of California
at
March 23, Dean
Secretary of
San Francisco, on
Stifel, Nicolaus <Sl Company
'
Assistant
Acheson,
NEW YORK, SECURITY
delegate from
United
States
B
t
t
e
r
Annual
the
to
n
o
Woods Mone¬
Confer-
tary
contend-
Spee,
ed
that
reject
to
the
International
Monetary
Fund
"would
mean
a
com¬
rewrit¬
ing of the doc¬
plete
uments"
and
that "the pur¬
poses
which
have
been
conceived
i
whole
the
Dean G. Acheson
n
would
plan
be
not
achieved."
"Opponents of the fund," Mr.
remarked, "have stated
that the thing to do is to accept
the bank and not to accept the
Acheson
to put them together in
some
way which leaves out most
of the features of the fund.
The
fund,
or
of course, it is im¬
possible to separate the bank and
is that,
answer
To do
the fund.
would mean a
so
notice to the Secretary of their discharge, no new outside mem¬
can be taken in until the rolls have fallen below four hundred.
upon
Agreements have been thought of
as
one
great
conception,
and
therefore the documents relating
of STANY which was
and the fund are in¬
The
tertwined.
members
members
of
bank
are
those
fund
who
wish
ceiving careful study by the Trustees and the By-Laws Committee
In this connection members are being asked to
they
make
initiation fee of $5.00 be increased, and ii
so, how much?
(It is felt.that it should be increased to $15
with the additiohaF$10 to be placed in the Gratuity Fund.)
Should there be a maximum age limit for new members, and
if so, what should it be?
(The Trustees of the Gratuity Fund
have recommended that such a limit be set, with which sug¬
the
purposes
which
this
in
whole
conceived
of
would not
be achieved,
if
you
do
ter is contained in the fund agree¬
operation of the
fund—which provides for putting
the
ment—in
gestion the Committee is in
plan
The whole heart of the mat¬
that.
3.
suggestion
is that
have been
the
•
.
Should the present
2.
be rejected
fund
the
'
<
*
accord.)
on
p.m.
currencies
to
freely
be
used
through the world so that trade
expand.
may
is
"It
one
through
a
thing to make loans
bank,
under a system
another thin?
through a bank
Exchange.
Arthur E. Baylis, Foreign Freight Traffic Manager
York Central Railway System, will give an informal
Transportation.
Henry F. McCarthy, Executive Assistant to the President of the
New York, New Haven and Hartford Railroad, will also attend as
make
to
loans
have no such orderly
system, but only a system of war¬
fare. The bank's loans will be in¬
safer where
finitely
you
a
guest.
Apr.
3, 1945-*~Los
Apr.
5,
<
1945—Security
4:30
20,
,
p.m.
impossible for people
to abandon restrictive measures.
"Most
have
with
made
of
difficulties
the
we
experienced in connection
the foreign loans we have
in
the
past,
aside from
of
errors
judgment
which
may
particular
loans, have resulted from disasters
have
occurred
which
and
the
to
occur
to
as
to
whole
the whole
countries,
of the trade of
world, from causes which the
Mot&iota
Young
GALVIN MFG. CO.
associated
with the firm
Common Stock
public util¬
analyst.'
Until recently
as
ity
he
with
was
Stearns
Bear,
HICKEY & CO.
& Co.
Mr. Young's
experience
Field Bldg., Chicago 3
in
Randolph
invest¬
the
when
became
ACTIVE TRADING MARKETS
I
of
one
National Terminals Corp.
New *
old
Common
England
public
with the financing of
presently
Engineering Corp.
Common
ADAMS & CO.
in Utilities."
231
R. T. Coradine With
&
Webber
&
Rodney & Co., and
become
has
past was with
Co.,
Fuller,
Merrill Lynch,
to
The
Financial
with
Clark Davis
(Special
LOS
to
The
^ ANGELES,
j
Chronicle)
Financial
CALIF.—C.
Laufman and William H.
Van y Benschoten
have
become
associated with Hill, Richards &
Co.,
621
South
Spring
Street,
Harry
members of the Los Angeles Stock
Mr.
Laufman:
was
previously with Bankamerica Co.,
Chronicle)
MIAMI, FLA.—Frank L. Edenis
With Hill Richards Co.
Exchange.
With Clark Davis & Co.
(Special
Street
Phone State 0101
Teletype CG 361
Cassatt, in Chicago.
E. A. Pierce &
Salle
CALIF.—Reese Laufman &Van Benschoten
Coradine
Mr. Coradine in the
Paine,
La
Chicago A, Illinois
Chronicle)
650 South Spring Street.
Co.,
South
<
,
Carter Corbrey in L. A.
LOS ANGELES,
.
lecturing
is
(Special to The Financial
Corp.
Preferred
Interstate Aircraft &
'
"Current Developments
on
<
Howell Elec. Motors
Up Values" for the New York In¬
stitute of Finance for two semes¬
and
&
Common
companies for leading financial
publications.
He
conducted
a
course in
"Public Utility Break-
there
Preferred
Franklin County Coal
utility companies from the early
days of the industry. He has writ¬
ten extensively on public utility
ters
&
Harold Young
houses identi¬
fied
1234-5
York
New
he
R.
idence,
the
to
asso¬
ciated inProv
with
CG
~
wire
from
dates
1925
8800
Direct
field
ment
& Co.
and
prior
thereto
Laufman & Co. in San
Langford Building.
business
did
under the firm name of
C. Rarry.
Francisco.
Hotel;
Traders
Association
of
in the Governors Room
1945—^New York, Security
New York-—Forum on Rails
Curb Exchange.
of the New York
Traders Association
of—Annual Dinner at the
J""""""
"A loan may
be just as sound as
can
possibly
is made, but if
ask
for
interna¬
tional trade and international ex¬
change are subject to all the haz¬
it
when
ards
which come
from economic
warfare, then things which you
have
not foreseen will happen.
The country
not
pay,
because
will be unable to pay,
it does not want to
but because it cannot
to pay, because it
money
-
get the trade
fund would remove.
anybody
'<
r
CONTINUOUS
North'n Pap. Mills Co. Com. & Pf d.
Koehring Co. Com.
Central Elec. & Gas Co. Pfd.
j
Nekoosa-Edwards Paper Com. Central Telephone Co. Pfd.
(
Compo Shoe Mchy. Com. & Pfd. Hamilt'n Mfg. Co. Part. Pref. & Com.
Rochester Telephone Co. Com. James Mfg. Co. Pfd. & Com.
Standard Silica Co. Com.
Wis. Pwr. & Lt. Co. 6 & 7% Pfd.
!I
get. the
cannot
the
these
which would develop
believe
elimi¬
to pay.
We
difficulties will be
money
I Aeronautical Products Com.
,
I
Waldorf-Astoria" Hotel.
fund
which makes
H.
become
has
field
Calendar of Coming Events
Angeles, Security Traders r Association—Spring Dinner »t
the'' Ambassador
Apr.
t\
.
have a
operating which makes it
possible" for trajjg to expand and
Harold
that
announce
#
like that, and it is
when you
Eastman, Dillon & Co., 15 Broad
Street, New York City, members
of the New York Stock Exchange,
the New York Curb
of the New
talk on the
warfare,
for putting aside this railway industry from an operating and traffic standpoint. A quesfratricidal struggle through cur¬
tion-and-answer period will follow. Mr. Baylis was until recently
rencies, to make it possible for Assistant Director of the Railway Division of the Office of Defense
aside the instruments of economic
INQUIRIES INVITED
associated with Carter H. Corbrey
Thursday, April 5, the Security Traders Asso¬
ciation of New York will hold a Forum in the Governors Room of
4:30
Joins
Eastman Dillon Staff
Thomas
STANY FORUM
At
Harold Young
y
membership be increased, and if so, how much?
(The joint recommendation of the By-Laws Committee and the
Trustees of the Gratuity Fund is that it should be raised from
400 to 450.)
Then he added, "but the point
Which
I
think
escapes
people
questions:
Should the
1.
mem¬
%
that
opinion on the following specific
express
have to be rewritten."
when
the membership is re¬
mentioned above.
thing would
whole
the
So
Accordingly, .the question of increasing
bers.
interdepen¬
are
be raised to four hundred and fifty or
the Gratuity Fund, an important feature
worked out on the basis of four hundred mem¬
membership could
The
five hundred were it not for
Any number of
provisions
dent.
become
to
bers of the bank.
other
the
the
of
bers
membership
Since they are automatically readmitted, to, full
sev^n,
St. Louis
Chicago
Association of New York
Dinner—The Security Traders
v.,
Founded 1890
that reservations for over one thousand have
rejection of the Bretton Woods
Agreements and a complete re¬
writing of the documents. This is
so
because
the
Bretton
Woods
to the bank
TRADERS ASSOCIATION OF
already been
received for the Annual Dinner to be held this year on Friday,
April 20, at the Waldorf-Astoria Hotel.
Those desiring to attend,
who have not already made reservations, are urged to send them in
immediately. All payments and names for reservations should be in
the hands of the Committee, Michael J. Heaney, Vice-Chairman, not
later than Monday, April 2.
Subscription price will be eight dollars
per person, plus sixty cents tax.
Increasing Membership Under Consideration—A By-Laws Com¬
mittee, consisting of Stanley Roggenburg, Roggenburg & Co., Chair¬
man; John S. French, A. C. Allyn & Co., Inc.; William K. Porter,
Hemphill, Noyes & Co., and Walter F. Saunders, Dominion Securities
Corporation, has been appointed by Richard F. Abbe, Van Tuyl &
Abbe, President of the Association, to study the question of increas¬
ing the membership of the Association in conjunction with the Trus¬
tees of the Gratuity Fund.
Trustees, in addition to Mr. Porter and
Mr. Abbe, are Gustave J. Schlosser, Edward A. Purcell & Co.; Cyril
M. Murphy, Mackubin, Legg & Co.; Arthur B. Retallick, Van Alstyne,
Noel & Co.; George V. Leone, Frank C. Masterson & Co., and Willis
M. Summers, Troster, Currie & Summers.
For several years STANY has had a full membership and a
waiting list. Up until now there has been a year-end turnover, with
the result that certain names from the the top of the waiting list
have been admitted annually.
This year, however, the turnover was
so small that it permitted only readmission of a few returning service
members, as provided in the By-Laws, and no new names at all
from the waiting list, which at present number sixty-six.
Membership is limited at present to four hundred, plus not more
than one hundred service members, who at present number fiftyannounces
I N CO RPORATED
■
■V.
State and a
the
Light & Telephone Co. Common
Western
|
J
|
|
|
|
|
the fund,
v "Therefore,
from the point of
view of the conception, from the
|
point of view of the object which
is sought to be attained, the bank
and the fund are part of one con¬
I
nated by
ception, and to take
part of it gives you
wholly different and
which
was
away
I
one
something
something
not contemplated."
|
■
fit
225
j
EAST MASON
PHONES—Daly 5392
PH^l
*
ST.
-
MILWAUKEE (2), WIS.
Teletype MI 488
Chicago: State 0933
1376
THE COMMERCIAL & FINANCIAL
•
1
1
We regret to announce
SPECIALISTS
the
resignation of
in
REAL ESTATE
Pacific Coast
ft:
MR. R. M. WRIGHT
Real Estate Securities
1929
Since
Thursday, March-29/1945
CHRONICLE
Securities
Orders Executed
SECURITIES
Seligman, Lubetkin & Co.
F. H. Holler & Co., inc.
Incorporated
Membert New
41 Broad Street, New
Hotel St. George, 4's
York Security Dealers Association
f7,
York 4
Members
HAnoyer 2-2100
'
111
Security Dealers Ass'n
Y.
N.
Factors Causing
N.Y. Athletic Club2-5's
Real Estate Securities
from $1,200,000
to
This
is
aid
an
the
net
of
first
the
reduction
until the issue is reduced to $900,-
Bell Teletype
capital gain taxes.
new
Real estate securities
continue
should
Peace
ACTIVE MARKETS:
securities.
estate
smaller structures with the
NEW YORK
Series BK-C2-F1 -0
AA
-
far
as
the
real estate
Teletype NY 1-1942
space
Reference
tenants.
Dlgby 4-2370
for
clamor
the
N.Y. 6
of
^oes, with the
exception of reletting space now
occupied by Government agencies.
This should not be difficult with
3 to 18
as
SIEGEL & CO.
39 Broadway,
costs
pated high cost of this new con¬
struction are factors to consider.
Reconversion problems are nil
PRUDENCE COLLATERAL
-
operating
labor
to
by civilian
any
daily
in New York will show
looking
newspaper
advertisements by tenants
for
space.
marginal
New
have
affected
not
requirements
real
estate
Bought—Sol J—Quoted
1939
EMPIRE REALTY
Associate Member
should
travel
and
tions
visitors
probably
who have
that soldiers
aware
rail
bring
conven¬
to the cities,
instead of at resorts. You
are
of
B'klyn & N. Y,
REctor 2-9838
N. Y. Finance Institute
Spring Courses
Tomorrow's Markets
Walter Whyte
on
Bond
issue
has
reduced
been
from
$6,000,000 to $5,662,700 since
1943. 1944 earnings 7.37% on the
which
bonds,
purchased
be
may
reveals
secondary trend
now
down.
Bearishness will
now
rent
New
buildings
ceilings
bearish.
office
on
New York at
in
rentals
1944
Law
also
is
primary trend
Keep positions so
stops hold.
long
as
too
By WALTER WHYTE
that
provides
Trinity
Broadway
up.
15 %
not
landlord is entitled to 6% plus 2%
amortization on his property. (As
example,
but
increase
still
at 60%.
above
Says—
Breaking of March 9-10 lows
The market is
trying to say
that it doesn't trust post-war
distribution, also using hotel
amount to
rope anyway,
for
ous
also
be
soldiers
Hotel
demand
in
until
rooms
ac¬
will
returning
housing
is
by
new
constructed for them.
Most
reductions
notable
the
in
Paid
Hotel-
Clinton
1. Governor
off its entire
$750,000,
senior debt
the
2.
the
placing
middle
of
the
4.35%
to
the
bond
and
interest
on
2%
amortization
the
bond
the
issue
six
of
issue.
6%
on
$4,533,500 for
period
would
months
$181,320, leaving room
negotiation of higher rents
plans. That the majority of
Hotel
(870
American Labor
Group on Int'l
Affairs Approves Bretton Woods
the
are as
ture
Big
first
bond
mortgage
Avenue.
of
Park
2
in
Due
December, 1946,
it offers a yield of 10.5% to ma¬
turity. If bonds are not paid off
Small boards
or
confused about the fu¬
as
the
people who buy
The closer the
their stocks.
end of the
this
draws, in Eu¬
war
the more obvi¬
general muddling.
#
*
*
Speaking of office buildings, an
interesting bond to watch is the
have stock
which
industries
on
than 15% above 1944 levels.
What this will do to the
market is
something else. I
explain last week that
and hope psychology as
tried to
fear
it
applies to stock prices can¬
reorganization becomes nec¬
not be gauged with any rea¬
the
bonds
should
be
The same
materially improved. Almost 2% sonable accuracy.
on
the bond issue was used for wild
hopes and fears Which
servicing junior debt, etc. In 1944 can lift
essary,
5%
paid
was
$84,724
on
these bonds and
used for bond retire¬
was
ment.
70's.
Central
Park
Place, formerly Harriman Build¬
ing, had a net profit before in¬
terest and
depreciation for the
six months ending Oct. 31, 1944,
of $83,959. This
was
equivalent
and
past few years are:
in
interest
purchased in the middle 70's.
3. Sherry
Netherland
Hotel
(Sherneth Corporation 3-5 %'s)—
an
net
paid 4%%
Sacramento
—
Fresno
from overseas
on
furloughs are properly being
given rest cures at resort hotels
by the Government. Multiply this
situation
by the larger number
of
returning soldiers after the
war and you will see that civilians
will have to use the city hotels.
In addition, merchandise buyers
will flock to the city centers of
returned
recently
$5,000,000
bond issue in a senior lien posi¬
tion.
1944 earnings 9.78% on the
bonds, which may be purchased
operating profit of $432,955.52.
the bonds, which may
on
be
boom.
post-war
a
restrictions
Plowing back of excess earn¬
ings for debt retirement should
be a great aid to hotel securities.
They
Offers
of
tage of being able to deduct de¬
preciation of the building before
being subject to income taxes.
(As
an
example,
the
Sherry
Netherland Hotel, in 1944 had a
TRADING CORP.
Broadway, N.Y. 6
enjoy
Removal
cities
the
in
located
Hotels
should
were
as
a
mulgated, will only affect profits
in trading these securities. When
purchasing real estate bonds for
investment, the buyer is naturally
concerned with yield. Real estate
securities enjoy the tax advan¬
CERTIFICATES
111
able to deduct
depreciation, they
bookkeeping loss of
$44,164.54 and did not have to
pay any income taxes.)
they
cause
$200,436.56
showed
commodations.
TITLE CO.
Real Estate Boards,
retirement.
as with very rare ex¬
ceptions they are not traded in
on National Exchanges.
New capital gain taxes if pro¬
securities,
FIRST MORTGAGES
EST.
applied $102,678.98 for
However,
be¬
bonds and
same
present larger structures securing
real estate bonds, plus the antici¬
TITLE & MORTGAGE
Series A
aid
to
Present
properties should be able to com¬
pete very well with new con¬
struction. Zoning requirements of
real
000, after which a large percent¬
age of the earnings will be used
for bond retirement. 1944 earnings
16.14%
bond
ations.
NY 1-953
mortgage
Santa Barbara
—
Oakland
—
,
should not$
affected by any of these situ¬
be
Dlgby 4-4950
.Y.
reconversion problems, new margin requirements and possible
peace,
Stock Exchange
York Curb Exchange
Members New York
Francisco
Monterey
inasmuch as 60% of
earnings are applied to
estate securities
SHASKAN & CO.
San
issue
bond
the
to
Teletype NY 1-928
Private Wires to Principal Offices
approximately $980,000 since 1942.
tunity to pick up some very desirable investments. Various reasons
have been advanced for the decline in the stock market, namely:
Members New
New York 5, N. Y.
COrtlandt 7-4150
of $4,055,200,
sympathy with the reaction of the stock market, some real
are also declining in price. This may be the oppor¬
In
41/2,s)—Reduced
Avenue
its senior debt
Decline in Stock Market Not Applicable
to
Hotel, 4's
Seventh
(Associate)
Chicago Board of Trade
14 Wall Street
Real Estate Securities
870-7th Ave. 4K's
(Park Central Hotel)
40 EXCHANGE PL., N
Members
New York Stock Exchange
York Curb Exchange
New
NY 1-1026
BArclay 7-0570
Beacon
Schwabacher & Co.
Broadway, New York 6, N. Y.
4H's
165 Broadway
on
Coast Exchanges
Pacific
Primary Markets in:
<
of March 1,1945
as
In
addition, $97,236 was
paid to junior bondholders and
equity owners during 1944. If in
the future this money is used for
first
mortgage bond retirement,
it
would
make
marked
a
differ¬
in the bonds.
ence
prices
levels
down
also
can
to fantastic
drive them
unbelievably.
*
*
*
A
professional trader by
frequent quotation of bid and
ask
prices can determine,
where the
buying and where
selling is. By comparing
ing from adverse structural or these levels
nance, 20 Broad Street, New York
throughout the
cyclical changes in foreign trade
City, announces that a seven-week A
market day he can gauge fair-;
Report by Albert Halasi, of Its Research Staff, States That the Pro¬ (their own,trade or that of other
course in Marginal Rails will be
countries). But they will also do ly well at what price he will
given beginning April 4, on Wed¬ posals Would Aid Employment, hut Recommends Additional Measures, it
indirectly by promoting friendly either buy or sell.
Of course
Says Fund Will Render "Deficit Countries"
nesday, from 5:15 to 6:45,
The Including Lower Tariffs.
The New York Institute of Fi¬
the
economic
current
position and the outlook
major roads and their
the
for
will
securities
be
discussed
a Breathing Spell in Which to Reduce "Transitional
Combats Bankers' Alternatives.
by
The American Labor Conference
Pierre R. Bretey, railroad analyst
for
was
Baker, Weeks & Hardin, and
George T.
Peregrin,
for Merrill
rail analyst
will
war
April 2, an eight
course,
"Introduction to
be
given
to
tary
course
7:15.
on
This is
an
has
der
analysis, cov¬
ering the accounting background
detail,
manager
ment
of
Andrew
F.
Abraham
conduct the
analyzes and rejects the alterna¬
&
Co.,
proposals of banking oppos¬
ing the Bretton Woods Plan, but
at the
affairs,
the
staff,
chronized
Full
course
is $10.
(Special
MIAMI
to
and
Employ¬
Mr.
re¬
The
Financial
the Bretton
Chronicle)
605 Lincoln Road. "
Albert
Halasi
sals, pointing out the role of the
Fund and the Bank in reducing
'
iransiuonai
Halasi
valuable
Woods Propo¬
S. Ainsworth is with Atwill & Co.,
well
as
states
that
"syn¬
"the Bret¬
ton Woods agreements will
in gen¬
eral, favors
BEACH, FLA.— Lloyd
their
the
own
troubles by
transferring
them to other countries."
"The
Bretton
ments," he
continues,
unemployment' anu
service
in
extent of both transitional
ployment
ment.
and
render
reducing the
inferior
and
They will do it directly by
helping member countries suffer¬
"will
leisure of the member
This
their
second
also
may
be
contribution
solution of the
coun¬
considered
to
the
employment prob¬
lem.
"Full
employment
be
may
more
when
it
income.
It is
it
should
highly desirable that
be
reached
under
con¬
ditions guaranteeing the highest
possible real income. This prin¬
ciple is vital for
where
full
countries,
poor
employment
may
co¬
exist with very low standards of
living, but it is important also for
wealthier
ties.-In
so
national
far
as
communi¬
the
devised
that
on page
to
that
system so far
answer
can
it.
1395V
:
There
are;'all kinds of chart
and tape methods calculated
to give the answers.
I have
yet to see them work out with
any success over a period of
time.
♦
<■
All this, however, is beside
the
point. If you have a
;
method which
makes money
for you then
have any. , I
follow it. I don't
try to gauge fu¬
ture levels by tape action. But
I can't put it in any intelligi¬
Bretton
Woods agreements reduce transi¬
tional unpmnlovment and inferior
(Continued
to it than
comes
there isn't any
achieved at different levels of real
the
unem¬
employ¬
agree¬
be instrumental in increasing the
income
in
goods, services,
tries.
there is much
just getting bid and ask
quotes. He still has to decide
if the trend is up or down.
And
Woods
real
-
port,
With Atwill & Co.
as
anti-depression
furthering international full
employment.
>
;
; • Regarding the effect
of
the
Bretton Woods proposals on what
he terms "transitional unemploy¬
ment" and "inferior employment,"
entitled
ment." The
v
of
course.
Cost of each
nqed
and
neighborly employment policies"
by the member countries as means
au¬
"Bretton
Woods
time stresses the
of trade barriers
of its research
will
same
for lower tariffs and the reduction
recently
thorship ; of
Halasi,
of the statistical depart¬
between
Such friendly
economic relations should prevent
them from attempting to remedy
Mr. Halasi
tive
Albert
Lynch,
International Affairs, which
"inferior employment."
and
published a
pamphlet, un¬
elemen¬
for those interested in
on
under chairmanship of William
relations
member countries.
in¬
interna¬
tional
Analysis,"
Mondays from
the field of security
in
ago
problems
and
Statement
5:30
years
report on post¬
,
Financial
to
vestigate
Beginning
weeks'
organized about two
Green
Lynch, Pierce, Fenner
& Beane.
Unemployment."
,
ble words to
I reduce it to
save
my
life. So
"stops."
(Continued on page 1397)
;
Volume
FINANCIAL CHRONICLE
THE COMMERCIAL &
-
Number 4372
161-
1377
ADVERTISEMENT
□ NE
COMPANY
MAGNAVOX
THE
OF A SERIES
This is number
ONTHESAN
STOCKS ARETRADED
WHOSE
COMPANIES
FRANCISCO
NOTE—From time to time,
PRIVATE
eighty-one of a series.
SCHENLEY DISTILLERS CORP., NEW YORK
STOCK EXCHANGE AVAILABLE ON REQUEST
DIRECT
inlhissphce,
there will appear an article which we hope
will be of interest to our fellow Americans.
OF TIMELY STATISTICAL REPORTS ON
WIRE
Revenue Collector!
Kaiser & Co.
MEMBERS
'
.V
;:;'
Speaking of taxes, and who isn't,
•
new YORK STOCK EXCHANGE
\
there
NEW YORK CURB EXCHANGE
25
STREET
BROAD
NEW YORK
the
BUILDING
FRANCISCO A
15130 RUSS
SAN FRANCISCO STOCK EXCHANGE
SAN
A
late revealing figures
are
huge
of
contributed to the
sums
from the sale of
Federal
revenues
various
products in this country.
And I daresay that a great many
people would miss answering the
The Job-Creating Power
Of Private Enterprise
INVESTMENT
over
com¬
the difference between
1911—it
19,350,000 to 40,535,000.
menting
on
rose
In
by
increase in the two centuries
the
—1651 to
1751, and 1751 to 1851—
Shad well observes (page 304)
Dr.
"the
that
course,
trial
INVESTMENT SECURITIES
wished to undertake the building
60 years—1851 to
difference
is
not,
of
wholly due to the indus¬
but the two go to¬
factor;
gether, and the vast increase of
during the second century
life
assumption
produced a state
of unprecedented and increasing
misery. This is emphasized by the
negatives the
common
that industrialism
fact that the rate of increase was
highest during the first decade of
the 19th Century, when the change
proceeding at its maximum
intensity."
In commenting upon
the conditions of the people in
was
of the
Colonnade
the
of
from working for
private persons,
penalty, for the first of¬
fense, of prison, and for the sec¬
ond, of the galleys."
relaxation of
government regulations in Eng¬
land and the invigorating progress
set in motion by the expanding
freedom of private enterprise in
spite
of
the
half of the 19th Century,
the first
"Society exercised on the manu¬
the most limitless
and
the most
BROKERS OF BONDS, STOCKS, COMMODITIES
•
Home Office Atlanta
disposed of the facilities of manu¬
facturers without scruple; it de¬
cided
who
what
work,
should
products should be manufactured,
what materials were to be used,
be permitted,
given to the
finished products, etc.
It was not
sufficient to do a good job, even
what profits would
what form should be
to
do
the best job,
but simply to
Who
follow the rules laid down.
with this reg¬
ulation of 1670, which prescribed
the seizure and boarding up of
commodities
not
conforming to
was
the
on
not acquainted
rules
laid
down,
and
which,
the second offense, ordered the
manufacturers
thereof to
be im¬
It was not a matter of
consulting the taste of the con¬
sumers, but of conforming to the
prisoned?
dictates of the law.
Countless in¬
spectors, commissioners, jurymen,
guards were charged with seeing
that they were carried out; they
smashed the works and burned
the
products which did not
form:
ized;
tions.
con¬
improvements were penal¬
they wefe fined for inven¬
Different rules were made
destined for domestic
consumption and those for foreign
commerce.
A worker was not his
own
master free to choose the
for products
he would work in
every season,
nor to work for
everybody.
There was a decree
of March 30, 1700, which limited
to 18 towns the places where one
place
where
the stocking trade.
A decree on June 18, 1723, ordered
the" manufacturers 'of Rouen to
could carry on
Phone LD-159
•
Well,
and
energy
Lincoln
President
possible
progress
it
people of ,the
and make
the
for
made
that
to
unemployment, regimentation,
still relatively higher
both
worker
the
taxes, and
and incentive for
opportunity
icao
the-
and
The first steps in making
after the war
ployer.
United States to prosper
full
in
raising
the
standard of living of all the people
must not be
strides
greater
than any other country
in the last
century.
The story is the same
down through history.
As people
have thrown off the oppressions
employment
merely so many jobs,
but
so
much
opportunity
that
there will not be enough men to
fill
all the
are
the conditions for full employ¬
jobs available.
How
ment.
these
are
TJtese
guished
bring about these conditions is to
gist,
their
Spencer,
a
distin¬
philosopher and sociolo¬
condemned what he
"over-legislation" in Eng¬
freely
regimentation, depen¬
Statism, and have used
on
own
initiative and
resource¬
jobs,
opportunities,
fulness,
—has established banks, insurance
pro¬
ican and German workman.
societies and the newspaper press
the
covered
the
sea
of steam vessels, and
electric telegraphs.
prise
brought
has
manufactures
their
and
with
lines
the land with
Private enter¬
agricultural,
commerce
present height, and
to
is now
developing them with increasing
rapidity."
"It
each
is
thing
the
man
to
secure
unhindered
to
power
his own good; it is a
widely different thing to pursue
to
pursue
the good for
him."
Mr. Spencer
ernment
was
its height.
manager
and
most
inefficient
producer.
On the
all
private enterprise with
of its mistakes, according to
his
observation,
the
task
contrary,
of
could
carry
out
production, employ¬
address to Congress
in 1861, said:
"There is not, of necessity, any
the free hired la¬
that condition
Many independent men
thing
as
borer being fixed to
life.
for
the
chase of tires required
pur¬
routine ap¬
provals from government agencies
which took about six months for
could
move smoothly without interrup¬
tion. The questionnaires and docu¬
if
ments to be filled out and
can
signed
That such conditions
dozens.
were
make work for everyone can¬
these con¬
production and in¬
crease the output of products and
services to be divided between the
make
They certainly do not.
workmen?
conditions hold
back production and the smaller
Such
regulated
product which results can only re¬
duce the standard of living for all.
Present American Conditions
War
conditions
bring
always
possible the main purpose—to win
the
war.
wars
Between the two world
many
restrictions and regu¬
restraining private initia¬
portunities for the
surplus with which to buy tools
or
land for himself, then labors
If the present
regulations and re¬
strictions
held
and
at
own
account another while,
length hires another new
beginner to help him.
This is the
just, and generous, and prosperous
in his own way for any
product, job, business or oppor¬
tunity. Establish free markets for
and materials; aban¬
money
men,
the
don
of
idea
Government
looking
for
help
the
to
either
tive
were
and
regulations
and
war
reduce
is
Restrictions
legalized.
the
are
ove^
decrease
the
average
number
to
of
when
op¬
ma
jobs.
this
labor organ¬
izations
or
pressure
groups
of
other
special interests; remove
the tariffs
reduce
or
abandon
where
them
the
raising the
standard of living in this country.
On the contrary, if the Govern¬
ment
is to
system, which opens the way to
all,* gives hope to all, and conse¬ making jobs
take
over
we can
the
task of
look forward
sus¬
we
have
hand
on
now,
from alcoholic
revenues
beverages, including customs du¬
ties, totaled $1,514,219,247. This
amount
ideas
of
was
almost twice as large as
tobacco, which
was
the next prin¬
cipal contributor, and about five
larger than Federal taxes col¬
times
lected
petroleum products!
on
This
sounds like we're
boasting,
but really we're not.
about
just
We're thinking
few short years ago
a
tried Prohibition in this
we
country with such dismal conse¬
. the same results that
experienced by every other
country where it was tried and;
quences
.
.
were
where it failed. We're thinking
of
the millions and millions of dollars
that
diverted from the coffers
were
of our Treasury
Department to the
long pockets of bootleggers, whose
existence was made possible by dis¬
regard of
an
unpopular law.
Of course, all of the tax revenue
dual
price systems, dual money
systems, Government cartels,
from the sale of alcoholic
subsidies and all the other protec¬
does not go
tions awarded to special interest.
The
Government should con¬
down of additional state and local
tinue
functions
normal
its
of
beverages
to the Federal Govern¬
ment. We have before us a break¬
in the amount of
revenues
over a
maintaining sound money, a speedy
half-billion dollars. These state and
system of justice, freedom of op¬
local
revenues
some
of the cost of education, hos¬
portunity
everyone
With
equal rights for
under the same laws.
and
conditions
these
free¬
of
dom of
private enterprise restored
there will be no scarcity of jobs.
But,
not be
made
I
the
on
contrary,
enough
will
there
to fill the job
men
afraid, however, that this
asking too much, because we
is
have
traveled
roads of
and
far
so
along
the
regimentation, partiality,
group
class privi¬
pressure
leges, and the people have been
so
indoctrinated with these ideas that
we
have
may
to
pitals, agricultural aid, old
endure
of freedom again, or let
other similar purposes.
*'
Again and again
and then start
over.
all
would
provide
no
special
orivileges for anyone. The task of
Government is to keep open the
honest
all
to
effort
selfish
seeking
anyone
and
terprise that provides equal
leges for all
acting
must
an
s
no
as
en¬
privi¬
honest and swift-
all
equally
fraud and unfair dealings.
umes
for
Government legal system
protebt
for hundreds
need
against
There
of
vol¬
of regimentation rules such
now
guide
administrative
bureaus which make the laws and
initiative is
under which private
being strangled. Only
the laws of the accepted standards
of
honesty
and
t
The
regulation, both by law and
that
self-imposition, is beyond any
doubt to be preferred to bootleg- ?
ging, corruption and other evils
which stem from Prohibition—
which docs not
fairness
MARK MERIT
to
j
FREE —Send a postcard or letter to 1
Schenley Distillers Corp., 350 Fifth Ave..,!
N. Y. 1, N. Y. and you will receive'
a booklet containing reprints of earlier!
articles on various subjects in this series, J
private enterprise in this country
is the road to jobs for everyone.
This
will
require,
of
elimination
tions
and
ting
up;
however, the
regula¬
red-tape,
regimentation; the set¬
of
a
system
of ftebdom
and the enforcement of the
simple
honesty and integrity;
and the re-education of the people
rules
of
dependence, enterprise and
of accomplishment.
This could be the greatest civil
revolution in the history of de¬
to self
the
rewards
mocracy,
an
and its results could be
example
are
,
return
J
prohibit.
Of SCHENLEY DISTILLERS CORP.
world
needed.
business, is
doing its best to show Americans
to
take
to
Under private
gains.
it: This
this cycle
Private enterprise and jobs for
way
we say
industry, in full recognition of the
long
a
of Government regimentation run
course
age pen¬
sions, aid to crippled children and
period of hard times to regain the
initiative necessary in a society
its
used to defray
are
social aspects of its
opportunities.
am
there is no hope for regulations
full employment or for
by
business enterprises,
practical;
Federal
when
pete
advantage of his fellow-man
penniless beginner in the world,
labors for wages a while, saves
his
Give every man
of which
re¬
practicable.
freedom' to com¬
tions
to
to
as
restrain
restrictions and regula¬
carry out as quickly as
lations
on
othW
and
war
rapidly
as
necessary
everywhere in these States, a few
years back
in their lives, were
hired
laborers. The prudent,
a
all the
remove
strictions
everything
job making best for both
government and the people.
Abraham Lincoln, in his annual
such
But
while
manufacturer's
automobile
not be doubted, but do
found that the gov¬
a
that
Germany were fully
regimentation was at
The description of an
in
people
employed,
ditions
ment and
remain
facts
confirmation
one
is
in
you
longer. The correct
that during the fiscal
of 1943, the complete figures
year
conditions
The! way
about?
a
em¬
dence
Herbert
won't keep
we
answer
and
improvement of conditions to all."
It was this system described by
quent
and quite
answered"petroleum products
pense any
to be brought
Mr.
some
on
the "tobacco industry"
few
Private Wires
of slavery,
—has
arb^rary jurisdiction: it
tion
i
products?" In
tried out that ques¬
of our worldly-wise
we
friends, several of them mentioned
England the first quarter ofP the called
duction
and
general prosperity
19th
Century,
Louis Simon of land and the incapability of the
have been the consequences.
France, said: "I have found the government to carry on or direct
the affairs of private business. Mr.
In modern times we have the
great mass of the people richer,
happier,~ and more respectable Spencer accused the advocates of outstanding example of govern¬
than any other with which I am government regulation and con¬ ment control and regulation of
trol of reading the parable of the industry
and
employment pro¬
acquainted."
vided by dictator countries.. Ger¬
The possibility of growth, ex¬ talents backwards.
"Private enterprise
has done many would probably be the out¬
pansion and improvement of wellPrivate standing example of industrial
being under expanding freedom of much, and done it well.
enterprise has cleared, drained countries with government regu¬
private enterprise as described by
fertilized the country, and lated employment before the pres¬
Mr. Withers is a striking contrast and
built the towns — has excavated ent war. According to the records
with the description of the condi¬
tions in France by John Stuart mines, laid out roads, dug canals, available it appears that the aver¬
and embanked railways—has in¬ age workman in the United States
Mill, the famous British economist
of the 19th Century. In describing vented and brought to perfection
produced substantially more than
looms,
steam-engines, the average workman in Germany.
the
pauperizing
conditions
in ploughs,
France in the 17th Century and printing presses, and machines in¬ Many reasons ftiay be assigned for
the earlier part of the 18th, Mr. numerable—has builded our ships, this difference in production ca¬
our vast manufactures, our docks
Mill said:
pacity between the average Amer¬
facturer
fact, when
persons
under
In
greatest amount of Federal revenue
Louvre,
from
employing the workers without
his permission, under penalty of
10,000 pounds fine, and the worker
private
prohibited
contributes the
from the sale of its
UNDERWRITERS AND DISTRIBUTORS OF
suspend workers from July 1 to
Sept. 15 in order to help gather
the harvest; Louis XIV, when he
13,793,000; and in the next
NEW YORK STOCK EXCHANGE AND
OTHER LEADING EXCHANGES
(Continued from page 1370)
of
asked,
"$64 question" if they were
"What industry
MEMBERS
of
the
to
the
value
rest
of
of
the
the
indi¬
„
democracy and
vidual in a democratic society.
Thursday, March 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
1378
'
Seaboard Railway Company
(when issued)
Province of
Chicago, Milwaukee, St. Paul & Pacific R.R.
Keep the RED CROSS at his
(when issued)
ALBERTA
(all issues)
,
Railway Company
St. Louis-San Francisco
(when issued)
Bought
„
—
Sold
Quoted
—
Complete arbitrage proposition on request
When issued
PFLUGFELDER, BAMPTON & RUST
Chic., Milwaukee
SUTRO BROS. & CO.
*•
t
•
'
• •
7...
•
Telephone REctor 2-7340
Railroad Securities
Preferred
(When Issued)
.
•
reorganization, one of the oldest
Seaboard
The
still pending in
Leon Fraser Supports
will soon advance another important step towards
Foreclosure sale of the properties has been set
the railroad field,
consummation.
Ernst&Co.
York
Stock
231
and other
Commodity Exchs.
Exchange
leading Security and
New York 5, N. Y.
St., Chicago 4, III.
So. LaSalle
will be held on April 10,^expectation now is that cash payments. There will be no
not need to be any reallocation of securities so long
as
cash payments on individual
change in the proposed schedule.
bonds do not exceed interest ac¬
It may be possible, therefore, to
crued from Jan. 1, 1944, to date
wind up the proceedings and issue
of consummation of the plan and
the new securities by the year-end
the date of the new securities.
or shortly thereafter.
the
will
there
There is little
the reason¬
ably early consummation of the
plan there has developed a con¬
siderable speculative interest in
anticipation
In
We maintain net
trading markets in
of
New When
stock,
of
are
complete
market
the
new
Railroad Company
and
Jan.
date of
date.
plans this theory might be accept¬
able. The way the Seaboard plan
St Louis-San Francisco
rectly against the old bonds,
'
roneous.
Adjustment of Claims" has an im¬
portant
the
Stock Exchange
*
.
-* <'
v
'
"
)
\
120 Broadway, New
York 5
REctor 2-5000
Telephone:
new
Telephone:
Boston 9
St.
LAfayette 4620
BUY WAR BONDS
Jas. Williams Promoted:
Awarded Bronze Star
James
Williams has been pro¬
date
of
If
Sergeant, and
,
has been awarded
the bronze star. He is in General
Patton's Third Army. \>•
Williams
Sgt.
cashier of M.
J.
was
McHale
formerly
Co., 115
Broadway, New York City.
cash
available
becomes
of
the
schedule in the plan sets
forth the
percentage of such cash that shall
be applied to each individual old
bond issue or the percentage of
Alabama
new
Great Southern
if
securities
new
each
shall
receive
securities become available
for redistribution by virtue
new
on
the
and
of
and
code
principal contributor, to ap¬
prove.
Under the Bank plan, the
United States has to approve im¬
the
simplification
that observance
a
recognition
any
of currency policies
must in the final
by
each
rency.
such
con¬
zation
voluntary
sultative
agreements
be,1
would
has
the
action on
stabilization questions and mone¬
tary
principles
and
practices;
fourth, in -all instances where
apjiro-
shown to be "requisite and
oriate
prompt access through
the
Department to shortfinancial aid in connection
Monetary
term
exchange restric¬
with moderating
tions,
loans,
to
to
long-term
Mr.
Fraser
of
criticized the Fund
the
arbitrary
quota
that it would lead to
exchange controls rather
would probably
ticipated
more
fewer4 and
than
practice unless the
was
prepared to
break down in
States
United
supply
dollars if and when
more
they were exhausted.
stabilization
seasonal
sortium.
because
constructively and
be
generously dealt with on the basis
of a program worked out in ad¬
vance.
The present Fund concep¬
tion is so elaborate that he an¬
continuous con¬
sultation, planning, and
could
Monetary
the
through
case
dol¬
immediate creation
Monetary Department of
the machinery for
a
by ac¬
De¬
partment of the Bank, where each
tion
lars; third, the
in
premature and the¬
fundamental mis¬
was
and
step that could be avoided
potential credit grant¬
ing powers up to ten billion
that the world¬
approach of
indiscriminate
oretical
Bank
the
in
membership
different problem for
each country and
the Fund
promises, etc., which are the basis
of all international treaties; sec¬
which
was a
wide.
first, the mutual
Fraser said,
ond.
concluded
He
whether
by
the Fund
mechanism
the consolidated Bank
were
adopted, the vital economic
interests
so
the
of
would be
rector
broad
policy
Governor and Di¬
the
Part. Pfd.
a
imminence
Fifth
of
Circuit
of the
new
Seaboard
securities
on
a
when-issued basis.
Chicago, Milwaukee, St. Paul &
to
matters
Committee
of
certain pertinence
on
St. Lcuis—San Francisco
BOSTON,
W.
MASS.—Edward
business as
E. W. Mundo & Co., 50 Congress
Mundo
Street,
and
has
to
VILAS 6- HICKEY
resumed
act
as
Railway Company
dealer in bank
Mr. Mundo
Members New York
49 WALL STREET,
HANOVER
TELEPHONE:
insurance stocks.
did business under
this firm name; recently he has
been with duPont, Homsey Co.
for many years
Stock Exchange
NEW YORK 5, N. Y.
2-7900
Teletype: NY 1-911
May
Circular
on
request
63 Wall
Street, New York 5
Boston
Tele. NY 1-724
Philadelphia
Hartford
to be heard before
New Orleans, adds
Mclaughlin, baird & reuss
.
Members New
.
1. h. rothchild &
of
National
are
CO.
Association
of Securities Dealers, l ie.
-
York Stock Exchange
in the Case of the
SEABOARD ALL-FLORIDA
Member
BOwling Green 9-8120
in
to our brief brochure on—
Copies of which
Adams & Peck
15th
available
upon
BOND BROKERAGE
specialists in rails
^ wall street
HAnover 2-9072
Specializing in Railroad Securities
1
request
n. y. c. 5
tele. NY 1-1293
SERVICE
ONE WALL
TEL.
HANOVER
STREET
2-1355
NEW YORK 5
TELETYPE
NY
1-1310
all
Con¬
Govern¬
Pacific Railroad Company
Arbitrage Letters
As E. W. Mundo & Co.
Recent Developments
*
a
officials.
and
^
Edward Mundo Resumes
appeal, scheduled
the
Court
in
be* subject
should
sultative
States
United
greatly involved that
the. American
ment
that
saying
mechanism or
Railroad
The
stabili¬
He added that currency
The consideration for
Mr.
own\cur-
portant operations in its
practices
be
right of the United States,
out any
add nothing new
mainly
are
agreed program for correction
with¬
of economic difficulties, and
stock.
common
probability that this will hap¬
pen should be considered when
contemplating
purchase
of the
A
bonds.
old
but
as
The
to
provided in the plan, the Reor¬
ganization Committee at its dis¬
cretion, but subject to approval
by the Court, may apply such cash
to payment of interest on the old
bonds. As an alternative, it may
set aside the cash for purchase or
retirement
the
dividend
for
creditors, in addi¬
tion to the cash payments actually
distribution
The same would be tru§
preferred stock, and
naturally there would be no back
earnings out of which to pay a
of
to the
consummation of
the plan.
moted from Private First Class to
,
actual
changes, which
any
such
to
other
accrued.
avail¬
distribution prior
for
adhere
readily
would
ments
nations
He maintained that other
without specific commit¬
to repayment, without
rowing
information.
credits, and
special financial help in ex¬
The effect on the new securities change emergencies. If necessary,
would naturally be adverse.
In¬ a portion of the Bank's large capi¬
stead of getting delivery of new
tal could be earmarked for these
Income bonds with perhaps two stabilization
purposes.
The re¬
years' interest (9 points) back in¬ sources of central barks could also
terest, purchasers might get bonds be mobilized for stabilization aid,
dated Jan. 1, 1946, with no interest with the Bank heading the con¬
bonds.
by
the event that cash becomes
would be in the best
holders, of the old
of
interests
the Re¬
organization Committee with the
approval of the Court, and the
claims shall be adjusted in the
following manner:—"
The text
then goes on to outline how the
reorganization shall be handled in
determined
be
and
angle
securities
—"The date of the new
able
V
bearing on the status of
securities and seems to
ignored by many spec¬
ulators
in
the
new
Seaboard
securities. This section starts out
shall
19 Congress
pected that that will be the course
adopted. Certainly it might prove
very
advantageous from a tax
have been
and other Exchanges
and
changing the effective date
of the plan and the date of the
new securities, it is generally exr
thus
plan, titled
"The Date of New Securities and
Section/VT^-pf. the
Members New York
securities.
plan specifically provides for the
alternative of paying interest di¬
is apt to prove er¬
is drawn up it
Railway Company
1, 1944, on the new
reorganizations the latter
been adopted but
this has been due largely to the
fact that the plans themselves are
not flexible enough to allow any
other
action.
As the
Seaboard
from
accrue
until
held
procedure has
that
Under most reorganization
will
be
will
In most
interest and
that
and
time,
dividends
or
consummation of the plan
and be distributed as income from
The
monetary
necessary
opens the door
indiscriminate bor¬
which
and
loose
to
or
country.
company
plan is Jan. 1, 1944, that the
securities will be dated as of
that
fixing
and
needs
alteration of ex¬
change parities; also to supply the
the
analysis
plan.
after
it as
accepts
the effective
that
settled
St. Paul & Pacific
apparently
the gradual
reduction of exchange control, and
practices,
exchange
question arises as to whether this
cash will be distributed as interest
on the old bonds by the present
not
the
technical details of the plan.
Chicago, Milwaukee,
security
system which he said fixes a na¬
tion's
rights irrespective of its
ticable moment of discriminatory
The
the
of
consummation
through the common
selling, there is
understanding of
the
before
prices at which the new
junior securities, from the Income
bonds down
to
will accumulate
prospective date of
holders, and more
from the
Issued Securities
distributed
be
could
Judging
basis.
when-issued
a
accumulated a
cash which
substantial amount of
traded now on
the new securities,
question but that
Seaboard has now
Bretton Woods
on
(Continued from first page)
dates,
but
MEMBERS
report is scheduled for
the final foreclosure decree, which sets these
Hearings on
June 29.
Bankers
report on the sale not
for May 31.
The special master is to file his
later than June 9, and a court hearing on that
New
YORK 5, N. Y.
120 BROADWAY, NEW
Pacific R. R.
120 Broadway,
Members New York Stock Exchange
!
St. Paul &
Common &
profits discounted
.Volume 161
1379"
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4372
CANADA
GENERAL FOODS CORPORATION AND WHOLLY OWNED SUBSIDIARY COMPANIES IN THE UNITED STATES AND
1,
CONSOLIDATED
COMPARATIVE
BALANCE
SHEET
DECEMBER
AND
1944,
31,
DECEMBER
CURRENT ASSETS:
Dec.
*
•
.
,
'
excess
of market value. (The 1943 figure is
Dec. 31,1943
r- i
'
.
CURRENT LIABILITIES:
Accounts
$ 11,983,961
.v
:
_
"
<
Salaries and wages,
7,277,811
'
5,422,820
Dec.
Dec. 31, 1944
8,052,884
$
2,730,756
t.
miscellaneous taxes, and other
377,726
2,821,ISO
expenses
'....'
/ accrued
31, 1943
2,866,391
*■
Acceptances and drafts payable...
..
■■■
.
t
.
payable, including taxes withheld ,$ 10,438,815
4
after deducting
$6,320,009 applied in reduction of Federal lax liability.
4
,
,
$ 14,243,669
U.S. and Canadian Govt, securities at cost, which is not in
<
31,1944
.
Cash
.
1943
LIABILITIES
ASSETS
.
31,
'
Accounts receivable (less
for discounts and doubtful
reserve
accounts, $377,261 in 1944 and $378,925 in 1943)
Inventories, at
Total
18,203,111
23,225,086
......
cost or market, whichever is
average
Premium
73,561,771
lower*
Federal and foreign income
63,784,096
-
Notes
*
.
"
J
v
')
i.
"
I-"'"
•
'
•
'
'
Estimated postwar
refund of
excess
2,633,000
—
-
2,700,000
profits tax
Miscellaneous securities and loans (less reserves)...........,
<*
i
yr>
-
;•*'
-
'
"
'
'
'
.
*
•<
.
•'
4,942,713
Buildings, docks, etc.
21,703,742
20,928,545
Machinery, equipment, motor trucks, vessels, etc
42,996,389
41,346,7.79
$ 68,681,847
$ 66,180,346
3,981,716
*
.
36,827,809
$ 31,854,038
»
"
TRADE-MARKS, PATENTS AND GOOD WILL
n|
t
4
(
*
'
-
721,823
•
'
M
M
i '
par
15,000,000
$ 15,000,000
value)
Issued, 5,590,774 shares
(Including 85,778 shares held by a subsidiary for conversion
•
of its non-voting stock in
$ 32,256,004
'
•
Authorized, 6,000,000 shares
\
33,924,342
•
Less—Reserves for Depreciation
i
Authorized, 350,000 shares
3,905,022
$
Land, factory sites, etc
$
V-
i
1
^J^ued 150,000 shares $4.50 cumulative preferred*........
V
Property Accounts.
$
$
-
'
'
^Common stock (no
V
Net
'
'
Preferred stock (no par value)
.
PROPERTY ACCOUNTS:
I
6,374,239
|
30,214,813
CAPITAL STOCK AND SURPLUS:
7,347,235
$
"
'
1,423,844
5,123,438
$
.v
..
'
1,600,000
^
1,101,856
Total Investments and Miscellaneous Assets
-
$
DEFERRED CREDIT
.,... . ....................... ,
*
i
$ 39,959,033
c
.
sitioned
18,794,273
22,629,321
;
•.:...
1,690,391
$
1,321,582
$
......
Amount, receivable from U.S.. Government for assets requi-
\
.
4
.
.i
held.)
RESERVE FOR CONTINGENCIES
'
(less reserves). .*
profits taxes. (The 1943
excess
|
\ Investments irt and advances to subsidiaries not consolidated
1'
168,750
1,293,750
.
Total Current Liabilities
INVESTMENTS AND MISCELLANEOUS ASSETS:
j
and
.
figure is after deducting $6,320,000 of U.S. Government Tax
$101,248,979
$116,453,346
Current Assets.
preferred stock and dividend payable*.
on
hands of public)
55,400,109
55,400,109
,
Stock...'
Total Capital
•
$ 70,400,109:
$ 70,400,109
$725,390, cost of 15,311 shares of common
Earned Surplus (less
38,767,425
36,340,225
$109,167,534
$106,740,334
$155,500,806
$142,619,689
stock in treasury) (Note 4)
1
Total Capital Stock and Surplus..................
DEFERRED CHARGES TO OPERATIONS
$142,619,689
$155,500,806
inventories:
.
$ 53,530,264
$ 44,876,900
18,054,805
Raw Materials.
17,050,451
*The
1,856,745
1,976,702
Supplies
$
$ 73,561,771
as
63,784,096
preferred stock
called in December, 1944, and redeemed
was
of Jan. 31,1945. On
Feb. 1, 1945, $25,000,000
borrowed
was
by the issuance of unsecured notes.
,
J
COMPARATIVE CONSOLIDATED INCOME STATEMENT
"*■
t
•
*
Dec. 31, 1944
$259,858,252
222,238,390
185,857,000
44,054,122
145,187
$
?...
$
*
715,728
;
$
a
operations have been reflected in the
companying financial statements at official rates
of exchange at the close of the year; property
7,892,000
accounts
have
been reflected
"V
•
approximate cost of exchange.
1,500,000
"
Properties
are
praised values in
by depreciation,
;
>-
3.
8,660,713
Renegotiation of 1943 business with U.S. Gov¬
ernment
$
9,335,713
3,003,064
$
4,809,134
departments resulted in
share of common stock in 1944 and $2.42 a share in 1943.
serve
for contingencies. No
,>
owned subsidiary
com¬
of the
considered
any,
$1,100,000
in
refunds,
postwar
amounting to
have
($1,500,000 in 1943)
1944
been deducted in determining the provision
excess
for
profits taxes.
surplus present fairly the position
companies consolidated at December 31,1944, and the results
accepted accounting principles applied on a basis consistent with
that of the
preceding
-
.
conformity \Vith generally
year.
Price, Waterhouse & Qo.
56 Pine
6. In accordance with the
company's policy of
carrying intangibles (trade-marks, patents, and
against earned surplus. Intangibles acquired in
prior
were
years
for cash and for shares of capital stock
applied against earned surplus oc capital
surplus (or
reserves
not reflected
created
in the
count in connection
common
therefrom),lor
common
were
capital stock
ac¬
with the original issue of
stock therefor,
;
'
necessary.. /
and of the related statements of income and surplus for the year
surplus of Dec. 31, 1944
.
of their operations for the year 1944, in
cepted auditing standards applicable in the circumstances and in¬
cluded such tests of the accounting records and other supporting
business; the net
will not be material
panies in the United States and Canada as at December 31, 1944,
made in' accordance with generally ac¬
re¬
specific provision has
opinion, the accompanying consolidated balance sheet and
related statements of income and
net refund of
year's profits.
OPINION
evidence and such other procedures as we
examination of the consolidated balance sheet
refundable, if
in relation to the
ACCOUNTANTS'
'
a
$68,473^ which has been charged against the
amount
our
20, 1944,
intangibles acquired during 1944 were written off
was
675,000
*
9,594,141"
In
provisions of the loan agreement of
a maximum of $10,000,000 of the
was available for
dividends (except stock dividends), or for the
purchase or retirement of capital stock other than
the preferred stock redeemed Jan. 31, 1945.
Dec.
earned
good will, etc.) at the nominal amount of $1.00,
excess
.
February 21, 1945
$38,767,425
of cost, not yet covered
$715,192 ($756,989 in
1943). Depreciation provided for 1944 aggregated
14,144,847*
*Equivalent, after deducting preferred dividend requirements, to
of General Foods Corporation and wholly
1,125,000
4. Under the
5. Estimated
stated at cost, excepting certain
been made in respect of 1944
,To the Board of Directors and Stockholders of
General Foods Corporation:
167,838
$3,418,774 ($3,122,726 in 1943).
$
675,000
8,919,141
share)...
was
basis of
$ 15,644,847
$
1944. Our examination
the
properties appraised at sound values in 1916 and
1926; the balance at Dec. 31, 1944 of the ap¬
1,500,000
Undivided profits
an
on
2.
$-
We have made
ac¬
$ 20,800,000
$ 12,597,205*
«
F
of
Canadian subsidiary companies and the results
708,000
.
\ Common stock ($1.60
$
..........................
NOTES TO FINANCIAL STATEMENTS
1. Net current assets and deferred expenses
704,165
$
$ 14,097,205
4
share)
$40,060,263
preferred stock called for redemption.
16,845,000
Dividends:
a
on
12,200,000
Prevision for contingencies.
Preferred stock ($4.50
premium
year.
715,000
provision for contingencies
s
3,003,064
8,300,000
$
..
*'
$36,340,225
4,.................
Earned surplus at end of year, as pei; balance sheet {Note 4).......
$• 36,444,847
7,830,000
$
profits tax
,.
^
15,311
31,997
$ 30,942,205
Foreign income and excess profits taxes
.
f
'a
1
>
736,162
$
27,675
Federal income taxes (including surtax)
profit.
SURPLUS^
\
716,974
Provision for
Provision for estimated income and profits taxes (Note 5):
Profit before
''
Deduct;
of their
a
„
464,503
743,403
$•
$2.14
'w
.
49,508
848,787
Profit before taxes and contingencies
:>
>
value,
222,151
$
(250,571)
.
•
.
t
,
$ 1,292,838
Less interest expense
Net
'
*
solidated.
excess
'r.
Net amount realized for requisitioned assets in excess of book
$ 35,740,682
Miscellaneous
Federal
5
Intangibles acquired during
Dividends and interest
,
i
I
$224,117,570
$ 30,226,477
Proportionate share of profits (losses) of subsidiaries not con-
♦
'
Undivided profits for year .
Other Income:
J
't ^
Add:
38,260,570
$266,292,512
Selling, administrative and general expenses, and other charges..
Profit from operation
STATEMENT OF EARNED
>-
shares of common stock in treasury)....
Dec. 31, 1943
$296,518,989
Cost of goods sold
.
Earned surplus at beginning of 1944 (less $725,390, cost of
Years Ended
.'
,
'
t
Net sales
,
.
..
Finished and semi-finished stock
,
1,767,470
$
2,069,983
$
(Prepayments for services, etc.)
\
Street, New York 5, N. 7,
The consolidated balance sheet of General Foods
Corporation and
wholly owned subsidiary companies at Dec. 31, 1944, and related
financial statements have been
prepared under
my
supervision and,
in my
opinion, present fairly the position of the companies consol¬
idated as of that date and the results of their operations for the year.
Feb. 21, 1945.
Wayne C.
Marks, Acting Controller
')
i—i
IfVfWAjit,-. '-> uaw. JaW ..IWWWHtf.
iM»c^- a»n WW. !**&*•
UfWaStOWMHWftu
«,.
wBMttvwotaat
Y
*"*
CHRONICLE
THE COMMERCIAL & FINANCIAL
1380
Thursday, March 29, 1945
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
SOUTHERN RAILWAY COMPANY
Ended December 31,1944
Fifty-Firs! Annual Report for the Year
'
Richmond, Virginia, March 26,
>
Stockholders of
I'o the
1945.
$2,600,000 more in
adequate materials
?
,
'
'
Board of Directors
tinuing program of "debt retirement".
Disbursed dividends payable in 1944 amounting
to $6,570,050.
(5) Had left on December 31, 1944, (a) $72,300,000
(4)
31, 1944, which is the annual report it is con¬
cember
formally to present to the stockholders of
the annual meeting due to be held on
May 15, 1945.
templated
the Company at
Year
The
of
therefrom
:
miles
freight
of
15,300,520,696
1.129(1
1.165?
$186,821,986
revenue
$172,799,049
14,678,774
177.52
2,605,816,163
13,472,869
passengers———_
199.46
(miles)——
2,687,308,323
Passenger miles
Average revenue per passenger
Total
2.213?
$57,660,240
2.206?
$59,270,726
—
revenue——
passenger
constituted a
new high record, as did passenger revenue of $59,270,726,
the increases over the previous year 1943, being 8.12%
Freight revenue for 1944 of $1£0,S21,986
2.79%, respectively.
proportion of passenger revenue to total revenue
in 1943 to 22% in the current year,
and
December 15, 1944, and
March 15, June 15 and September 15, 1945.
(2) A dividend of 750 per share on the Common Stock,
requiring $973,650, was declared out of the balance of
1943 earnings, and paid December 15, 1944, making the
aggregate paid on the Common Stock, out of 1943 earn¬
percentages being in excess of what has
considered a, normal proportion of
these
been
heretofore
passenger revenue.
The large amount of 1944 passenger
revenue is explained
by the fact that during the year
the
9,634 special and extra sections of
handling armed forces alone, carrying
1,751,536 members of the armed forces.
On
Company
ran
trains
regular
thereon
regular trains the Company handled a total of 11,721,333
of 1944
50%
Dividends
aggregating $5 per share on the
Preferred Stock, out of 1942 earnings, which rate on the
Preferred has been continued annually since that time.
Common dividends of $2 per share were declared out of
with dividends
1931)
1942
earnings, $2.75
share out of 1943 earnings, and
per
in
gross
revenue,
$3,796,058 less than in 1943 due to there being less net
expenses.
Taxes consumed 25.540 out of every
the
of
dividend
above
March 15, 1945, from
will
have
Company
has
put back into the property in capital improvements
$4-3,400,000, and has reduced long term debt, exclusive
of equipment trust obligations, by more than $74,000,000.
from its
resources
The
and earnings of the past five years
:5;vT:
in
Progress
When
the
out of each dollar of revenue, were as
will face
Maintenance
of
28.69?
Way
11.74?
^
'
Maintenance of Equipment——15.70?
Traffic
1.90?
———„—1.10?
—
i
—
Taxes
25.54?
—
—
forces of competition.
Measures to pros¬
in such a period must be sought and found.
Among such measures are new techniques of efficient,
safe
and
machines,
economical
maintenance
trimming
the
which
machines
efficient
and
will
and
operation,
the
of
the
tree
of
the
corporate
40
of
replace time consuming manually operated switches,
expanded program of purchasing automotive trucks
for the handling of certain materials, the installation of
flashlight signals to relieve crossing watchmen, and the
an
purchase of
numerous power
increases
in
gross
revenue,
are
attributable
to
a
continuing upward trend in the cost of doing business.
For
example, total payrolls for 1944 amounted to
$91,149,707, an increase of more than 10% over 1943,
with
an
increase
less
of
than
5%
in
the
number
employees.
,
'
Net Income
The! Net
amounted
Income
to
for the year
(after charges and taxes) for 1944
as compared with $23,528,589
tiiyidends of 5%
of income for 1944
Common
in
;
,
,
$22,261,814,
1943. f
Fixed charges were covered 2.55 times.
ing
of
Stock,
1943.
on
was
as
example
of
car
new techniques developed,
linen and uniform coats was
the Preferred
with
Mfer deduct¬
Stockpile balance
per
$15.81
share of
per
share
,
Use in 1944 of the Company's Financial Resources
After
paying operating expenses, taxes payable in 1944
charges, the Company used its
treasury monies (mentioning major items only)
as
of $72/000,000 and fixed
follows:
(i) Devoted $12,264,301
of treasury cash to capital
jjmpyovements to road and equipment,
as
with! $10,184,715
iri 1942, and
of similar investments
$10,294,215 in 1943.
was
:
the
sum
of
compared
Included in such charges for 1944
J>2,957,517 for improvements to the
conducted
in
way
1944
and
equipment
with two definite
objects in view, viz., to carry the tremendous load of
freight and passenger traffic with safety, economy and
efficiency, despite the relative scarcity of manpower and
equipment, and to use the available resources of the
Company
and
more
to make
the
property better,
economical to operate.
more
efficient
Although the increased wage level, effected through
the increases mentioned in last year's Report, prevented
the "cost of transportation" ratio again to reach down to
the low figure of 25.25% of 1943, 1944's "C. T." of 28;69%!
was
creditable under war-time circumstances, and com¬
pares
favorably with other railroads'
operating results
The year
1944 passed without serious casualty in train
operation, the goods and passengers, the huge volume
thereof considered, being transported with as good aver¬
age performance as could be expected.
The ratio of bad
order cars and locomotives, in order that they might be
available for the year's service needs, was kept approxi¬
mately to the
both
;
of
way
business to be expected in
high level of
1945, and also in the endeavor
in 1944, an increase of
1943.
locomotives, paid for in cash.
September,
pairs to
Large
48
items
$3,737,547,
included
or
13.89%
therein
more
were
the
than
re¬
miles of road damaged in the floods of
1944, and Jhe maintenance expenditures
for
suc¬
during 1944, cutting almost in half tty
inventory of such supplies, and effecting,
saving in costs
prevjjqus
compared with
as
duritfg_tne/year,
supplementing the already indispensable communication
system of the Company, additional autgmatic track
signals were put into operation, and many mechanical
loaders and
materials
devices
for
efficient handling of the
more
installed
were
in
roadway
and
mechanical
.
New Rail
During the
1944 there
were laid 47,171 tons of
rail, as compared with 40,733 tons laid in 1943,
38,787 tons in 1942, and 20,925 tons in 1941.
year
new
Orders for
1945
have
been
placed for 78,600 tons of
rail.
new
The price of new rail,
which had been fixed since the
at the mill, was increased,
January 11, 1945, with approval of the O.P.A.,
to $43 per ton, which increase will substantially increase
1939
year
$40
at
ton
per
effective
the
of the Company during the current year.
expenses
New Equipment
With
view not
only to the current level of business,
poking to the future when more modern equip¬
a
will
continue
incurred
the
to
950
earn
was
during the
new
all
year
were
steel
its
cost,
the
continued, but
program
no
new
of
debt
in connection with such
delivered substantially all of
freight train cars, formerly
restricted by orders of the War Production Board, which
were included in the Company's 1942
Equipment Trust,
Series "JJ".
Eighteen
new
Diesel-electric switching locomotives of
1000 horsepower each were delivered and
paid
1944, and
There
are
were
now
for during
giving efficient service.
also delivered late in
December, 1944, and
1945, the four 5400 horsepower
Diesel-electric road freight locomotives, mentioned in
last year's Report, at an Aggregate cost ot
approximately
$2,000,000. Two additional 5400s, costing approximately
$1,000,000, were delivered in February, 1945, and were
paid
for
in
January,
also paid for in cash.
To
take
care of current business and for
economy in
operations, the Company now has on order, for
delivery in 1945, three 5400 horsepower road freight
Diesel-electric
locomotives,
seven
1000
horsepower
Diesel-electric
switchers, four small 44-ton Diesel-
future
electric switchers and six 4000 horsepower road
passen¬
ger Diesel-electric locomotives.
as
to make the property more economical to operate.
Maintenance of Way and Structures cost $30,654,358
put into
commercial laundry bills.
New telephone circuits were installed
Reduction of Debt and Fixed Charges
and
current level of business and the continued
in
-V. \
low minimum
reported for 1943.
equipment, despite
certain shortages in material and supplies, and in the
face of an increasing shortage of manpower, was accel¬
erated and increased, both of necessity because of the
same
Maintenance,
Company's
equipment,
of
which
approximately
$1,500,000 was the entire cost of new Diesel-electric
and
laundry
a
as
an
cessful operation
purchases*
During 1944, there
for the year.
equivalent to $14.84
compared
Operations and maintenance of
operated machines such
As
automatic tools, graders, ditchers and bulldozers.
were
1944.
most
to
was
Operations and Maintenance
more
shops, a traction motor shop for
Diesel-electric motors and improvement to
the Company's steam locomotives, serving
to increase their efficiency and economy.
From the standpoint of improvements to, and mod¬
ernization of, roadway, there may be mentioned the
installation
of
automatic
electric
water
pumps,
the
application of heavier tie plates to prolong the life of
crossties, the continued installation of spring switches
some
increased in each year over the previous one.
The Successive decreases in the past two years in Net
Railway Operating Income, exactly in inverse order to
Company has made progress in
operation
of the
some
renewing
equipment acquisition
promotion of the development ancPprosperity
territory to be served.
Along such lines, the
future
Among
Diesel-electric
new
of
directed
Operations More
On the mechanical side, there was the construction of
determined
the
make
economical.
had left in the till for all other corporate
requirements (after providing for the expense of opera¬
tion, taxes and equipment and joint facility rents) only
12.80% of the 1944 gross revenue, as compared with
14.56% in 1943 and 22.61%
in
1942, although gross
revenue
Future
noteworthy of such items:
but also
the
the extra¬
during
run
to the investments in new equipment,
below, further progress was Vnade in 1944 in
the continuing program of modernization of the Com¬
pany's plant, both way. and equipment, through the
expenditure of capital money for processes, devices and
ment
The Company
mileage
addition
In
debt, the legitimate influence of public opinion in favor
of the well-being of the industry, and an intelligent and
28.68?
84.32?
car
Economical
organization so as to cut off any unprofitable branches,
continuing reduction in the burden of interest-bearing
55.64?
85.66?
;
—
new
problems—less revenue,
installation of modern economical processes, devices and
2.24?
.95?
Totals60,12?;
coupled with
the difficulty of obtaining compensatory rates, and levels
of expense that are difficult to reduce.
In addition, they
.
1.12?
—
expenses
Incidental expenses
^
.99?
expenses
General
25.25?
10.96?
15.12?
"
ends, the railroads will be confronted
per
In 1943
In 1944
'
-
to Make
1944 Toward Meeting Post-War Problems
intensified
with
Transportation
Capital Investments
storehouses.
n.
war
and tear caused by
the year.
substantial
disbursements
$19,000,000.
approximately
aggregated
wear
ordinary amount of engine and
necessary
dollar of gross revenue.
The comparative ratios
of the several categories of
Operating Expenses, expressed in the number of cents
follows:
effort to restore the
dividend of 750 per share, payable
1944 earnings.
after
,
Expenditures for Maintenance of Equipment for 1944
the largest in the Company's history, amounting to
$40,980,700, an increase of 10.38% above the correspond¬
ing figure of 1943.
This increase was necessary in the
were
dining
gross revenue.
Railway Tax Accruals, including the accruals for Ex¬
cess Profits Taxes, amounted to' $66,641,178, which v/as
timber.
quarterly dividends at an annual rate of $3 per share
established with the declaration of the quarterly
were
All
in Operating Expenses
increase
the increase
1
recapitulate the Company's recent dividend record:
were resumed in 1942
(after a lapse since
To
of the armed forces.
members
were
was larger than
operating expenses con¬
suming $156,911,481 in 1944, a new high in the Com¬
pany's experience, an increase of $20,307,328 or 14.87%
over 1943, as contrasted with the increase of 6.29%
in
The
earnings, payable March 15, 1945.
and of this number it is estimated that more
passengers
than
on
ings, $2.75 per share.
(3) A regular quarterly dividend of 750 per share on
the Common Stock was declared January 23, 1945, out
The
declined from 23%
both
respectively,
payable,
1.54
mentioned
gating $3,000,000 were declared out of 1944 earnings,
being four dividends of $1.25 per share each, paid and
61,747,215
247.79
16,033,255,370
mile
ton
per
Average journey
;t; mile
1944,
(1) Dividends of 5% on the Preferred Stock, aggre¬
1943
*
(15,587,514
244.46
(miles)
—-
revenue
Number
banks as
through the
receipts
the
and
1944
Total
cleared
not
were
of December 31,
compared with the previous year were:
as
moved
Average distance moved
Freight
Average
(b) the cash shown in the
Dividends
handled
business
of
S
Ton
which
filling
having been filled in 1944 an additional
miles of trestles in 70 separate locations, thereby
program, there
The balance sheet cash is reducible by
balance sheet.
items
-
volume
The
investments in Government securities,
against an accrued tax liability of
corporate necessities, and
of the railroad was
$260,978,544 in 1944 as contrasted with the previous
high revenue of $245,532,051 in 1943, an increase
of 6.29%.
reserve
a
approximately $66,600,000, and as a reserve for other
1944
from the operation
The revenue
temporary
as
included in the charges for the continued trestle
permanently eliminating some 2,300,000 board feet of
during 1944.
(3) Disbursed approximately $8,050,000 in the con¬
submits the following report
the affairs of the Company for the year ended De¬
of
supplies for the increased
and
volume of business handled
SOUTHERN RAILWAY COMPANY:
The
the treasury approximately
1944 than in 1943 in providing
from
Expended
(2)
During 1944 the Company continued its program of
reducing debt and the burden of fixed charges.
The Company's Development and General
Mortgage
Bom$, which mature in 1956, and which originally were
outstanding in the principal amount of $111,333,000,
were^reduced to a balance of $79,154,000 outstanding in
the
hands
of the public as of December
31, 1944.
An
principal amount of approximately $1,500,000
of these Bonds was acquired
by the Company during
January and February, 1945. The average interest pay¬
additional
able
on
the
aggregate
balance
of
the
three
series oi
Volume
Number 4372
161
THE COMMERCIAL & FINANCIAL CHRONICLE
.
ADVERTISEMENT
ADVERTISEMENT
During the
a
net
1944,
as
to
31,
Debt
_
—
that
8215,446,000
85,000,000
of
and
Atlanta
The
Charlotte
Line
war
(which
creases
suspended
were
all
The South continued its important contribution to the
and
industries
varied
their
bent
direction—production for
one
New
to
production program during 1944.
war
munition
existing
served
war
the
by
factories
efforts
Its
many
essentially in
war.
planned and additions
plants authorized, many of which are
Company's lines.
Announcements by
were
built
The
Board
October
due
labor
to
war
1944,
Stewart Bryan.
active
spindle
1,449,228 tons,
one
deep
their
of
hours and mill
the
South,
Respectfully
The
for the establishment of
an
total
lions of
shifted
issues.
from
between
REPORT
tional
in
made
the
sold,
"out-the-window"
not expected to
the
movement
so
Issue
is widely
viewed
liable barometer of the
takes
of
the
a
new
as
keeping
half
is
con¬
thus
funds
of
freeing
up
underwriters
their
distributors
but
of
this
is
ex¬
#
financing which
is ahead for the next six weeks
or
The
so.
is
ever,
current
not
out
issue, how¬
of line, on a
controversy
are
of 1971,
currently
'"
■
j
.
four
loans, which
•'
1974
quoted
2.65%.
-
'
v*-' t
*.
large
railroad
a
the
works,
could,
are
big
if
the
all
materialize,
next
six
prospective
bring
out
an
aggre¬
gate of something over $600 mil¬
Three of the
are
re¬
that
in
bonds, those of Laclede Gas Light
tion
These
will
off,
without
given
no
considerable
many
Of that
But should
time
he
re¬
firms holding such
issues would be out of the run¬
as
far
as
participations
new
are
syndicate
concerned.
exception
The
case
of
son
Co.
of
$8,906,536
,
proves
the rule.
Commonwealth
Edi¬
Chicago's- projected
J",
:
•
and
'
$29,791,746
$29,713,823
$77,923
66,189,015
70,692,484
4,503,469
2,080,873
not
2,090,296
9,423
68,605,348
57,530,285
11,075,063
due
:
defense
projects
liabilities,
including
items due to others, but not'
yet adjusted
_____
The
total
^'
'
*
18,240.591
______
these
of
credits and
15,652,776
2,587,815
$175,671,664
$9,227,909
.
liabilities,
reserves
was
$184,"07.573
,
mained, for the capitalization
of the Company, net assets of $583,881.993 $584t203>66
Debt,
equipment
trust
60,000,090
Stock
deducting
tion
$238,486,658 $251,134,834
from
129,820,000
_____________
this
$12,648,176
129,820,000
there
re¬
largely
property, of
in¬
surplus,
the
$12,648,176
capitaliza¬
net assets
a
in
'•
60,000,000
total capitalization of_ $428.306.658 $440,954,834
a
,
~
obligations,
Stock
Common
$321,373
.»■■■'.
,
including bonds,
—.—
Preferred
,'
•
undertaking would
an
new
offering
public
no
securities.
this
In
the
up
and waiting to
issues already
many
$155,575,335
by
a
group
nies and
out
$143,248.5'»2
$12,996,803
of
in¬
set
But
the
an
is working
exchange plan hhder which
Late
nevs^os forHheir
" /
Summer
or
Evidently
taking
are
calendar
ings
to
of
before
plans
some
look
second
a
at
the
far
as
holders
giving
which
that
such
a
pro¬
that it would come;
or
late in
shortly thereafter.
Buchanan Houston Dies
partner
in
Exchange
Joost
&
Houston,
the
firm
New
of
Patrick,
1 i pi i t e d
York Stock
II. T. Carey,
120 Broadway,
New York City, died at hfe home
at
the
age
of sixty-ninh.
Mr.
firm
in
joined
the
brokerage
1926, becoming a limited
partner two
years
ago.
seems
Puget
were
David
W.
Ellis,
be the case as
Sound
&
Stock¬
Power
told at the annual
will
as
they are,
weigh
the
^
senior
partner
Terminal
in
to
conditions continue
company
David Ellis Dead
consideration
themselves
they
meeting recently that if market
the
McLaughlin,, Presi¬
prospective refinanc¬
have in mind.
That
next
await the closing of
Seventh
War
Loan? which
Houston
Early Fall
potential issuers
callable
would
Buchanan
compa¬
the company
are
revealed
means
July
refinancing its
first
108%.
Frank
dent,
gram
of
of outstanding
which
year at
go.
of insurance
they will accept
holdings.
;
$52,000,000
The outstanding bond& are held
Light Co. is concerned.
Would Complicate Things
The
$768,789.566 $759.883,030
but not yet due_
but
stance, however, there is a ten¬
dency to give thanks in view
question
time.
question.
2,455,334
materials,
would be bewailing the fact
ers
preferred stock of Florida
there is
14,733,040
reserves
of
Power.
ning
12,277,706
Company to-
dividends
accrued
'
V
Deferred
that such
Exchange are
category, namely the Pacific Gas
weeks
issues
interest,
accrued
2,602,289
.
the
wages and
balances
railroad
companies,
otheri
11,867,711
'
„
414s
now
underwritings is correspond¬
quired,
to
Ordinarily, investment bank¬
When deals "back up" the abil¬
and the
14,470,000
stance.
ity of such firms to participate in
any
equipment
advisability
members of the
offerings
.■'■■■■>:;>5
'
__________
—
of
new
5,407,512
refinancing of its $113,000,000 of
an in¬
stringent.
work
'
impending, and
utility
refinancing
programs which are definitely in
between
and
"
several
the Securities and
Commission
1970
and
the
of
etc.
the
cent
22,788,235
and
_________
Assets
.
ratio of many firms, particularly
are
8,300,000
17,380,723
•
and. unadjusted
yet: available
Funded
involve
Stock
$1,746,083
64,000,000
in>,
$245,532,051
bidding.
ingly shortened.
new
not
Operating
In 1943
would
are
York
$4,121,010
$31,424,886
Reserve for depreciation of road
and equipment and amortiza-
the
Rules affecting the capital-loan
volume of
May Affect New Issue Bids
center
total
subject to competitive
New
companies
order:
mained
consist of issues which
those which
$^15,069,158
$33,170,969
the
assets
vested
bond and senior stock
t,
72,300,000
taled
a
few minor exceptions,
a
;
6,417,50$
Notes
outstanding Zlk% bonds is
bulk
;
59,015,868
debits, including items owed to
pas¬
.
new
Including
14, when the Treasury
for its Seventh War
company,
the
'
52,598,362
$619,190,168
investments
road
good
After
-
and
\*'
corporate financ¬
Pacific Gas issue, a
Exchange
capital
and
to yield from 2.62 to
a re¬
probable
over
lively
issue
and
Loan.
The
than
which
its outstanding 3s
be, but
of this
ing in the period between now
and May
better
time
the
owed
Making
$260,978,544
new
With
tradi¬
a
yield basis, since it is noted that
even
of
the
a
propositions.
scope
its
freight,
operations
pected to weigh heavily on the
price of 107 % to
return a yield of 2.66% to ma¬
turity, the undertaking was not
was
to
sumed in placing the balance of
v
those
and
company
bankers,
basis
competitive
basis
with the issuer
receiving
two bids separated by a difference
of only .03 basis points.
marketing of Pacific Gas & Elec¬
tric Co.'s huge $80,000,000 issue of
new
first mortgage 3s is being
scrutinized carefully
in under¬
Offered at
negotiated
a
Somewhat
writing circles,
from
group of midwestern bankers, was
REPORTER'S
being
received
$10,538,516
A
com-
—__
Company:___
Company had on hand fuel.
in
Financial Results for the Year
and
„
The capitalization of the Company
consisted of the following: «
submitted, by order of the Board,
miscellaneous
revenue of
senger
....
investments
Government
railroad
Deferred
<
In 1944
Compa^
The
-
/.
$566,591,806 $556,053,290
had
'
rails, ties, bridge material and
other
supplies
necessary
for
SOUTHERN RAILWAY COMPANY
oil refinery there.
OUR
S.
others
The
President.
^
other
temporary
U.
Other
ERNEST E. NORRIS,
berg, Mississippi, and plans are now being consummated
It
:
or
v
.
After deducting these items from
the
tctal
assets
there
re¬
continued Royalty in the year Just, closed, V
last year's production.
over
Increase
'Decrease
31,1943
Company
And
appreciation of the management is extended
to all officers and employees for their effort, skill and
in several of the Southern States
during the year, one of the
principal areas being on the Company's subsidiary, the
New Orleans and Northeastern Railroad, near Heidel¬
Progress
of
owners
Year
December
'""v.*:;,-.
-
had »'}cash
and
special deposits amounting to_
warm
The drilling for oil
of
the
to
the
on
'
Investments
The
rents
return
a
of
'
.i
r—
supplies,
pay
property
affiliated
of
and
The Company owed for
to
End
Company
in
stocks, bonds
notes
Total
their faith in Southern Railway.
The
fixed
the
carried at
the death on
colleague, John
in 1943.
as
and
panies
.
Taxes
and
the
investments
______
investments
adver¬
property who through their investment have expressed
has been further advanced
one
other
other
addition
opinion, the Company hopefully looks forward to the
post-war eray confident in its ability adequately to serve
the Company's handling of cotton
constituting 68% of the total con¬
increase of 9%
large
In
regret,
esteemed
output of viscose tire yarn in 1944 was more than twice
as
and
and
cars
industry established another; record in 1944,
The rayon
an
periodicals,
had
of
"Look
to
Imagination and courage will surmount them, and with
the help of the owners and of an informed public
sumption by mills in the cotton-growing States.
With
call
problems have been mentioned in this
report and are called to the attention of the stockholders.
sumption in the United States.
was
15.059,386
$23,528,589
land, railroad tracks, term¬
facilities, shops, locomo¬
freight
and
passenger
and
spinning machinery of the country at the end of 1944,
worked 84% of the total spindle hours and consumed
8,557,000 bales of cotton, or 88% of the total mill con¬
year,
the
Conclusion
consumption of cotton were less in 1944 than in 1943.
The cotton-growing States, with 76% of the total cotton
During the
14,672,838
$22,261,814
tives,
Perennial
as
leased
deductions
inal
to
industries in the South; although
shortages,
in
around
with
records,
16,
materials, and products of
The cotton textile industry continues to rank
equipment
for
31,1944
Southern
mines and quarries made a new record.
of the most vital
and
paid
income of
net
a
Company
of the acquisition of new plant
further industrial development
in the immediate post-war period.
Steel production in 1944 was near peak levels due to
war
debt
rents
miscellaneous
____
Company
The
several large companies
sites point, however, to
the increased demand for
funded
and
December
The
Railway advertising during 1944 was
approximately 94 Ya million.
•
Advertising constituted only a part of the Company's
public relations program. Related activities were news¬
paper, magazine and radio publicity, the distribution of
literature, poster production and display, and coopera¬
tion
with
authors,
editors,
educators,
government
officials, and promotional agencies in Southern territory.
Industrial Conditions
Nation's
2.843,218
$38,587,975
on
ing specifically addressed to farmers appeared regularly
in 12 farm publications.
Thus, the total circulation of
of the freight rate in¬
in effect from March 18, 1942, until
suspension
May 15, 1943) for the entire year 1945.
on
;•
$36,934,652
The railroads deny
tising featuring the Company's contribution to the
winning of the war was regularly scheduled in 418 on¬
line newspapers, reaching a combined total circulation
of more than 81 Vz million readers.
Similarly, advertis¬
Rates and Fares
the
in
miscellaneous
SOUTHERN RAILWAY COMPANY
emergency.
and financial
magazines
Second
The Interstate Commerce Commission, on December 12,
continued
investments
Financial Position at
Ahead—Look SouthP', appeared regularly in 20 business
Mortgage 33/4S owned by the Company.
1944,
of
obligations,
Resulting in
Company, during the year, continued its public
relations program inaugurated in 1942.
8304,064,434
Air
income
totaled
violations of law, but above and beyond that,, feel
such time-consuming procedure should await the
Advertisements,
•Includes
and
3,518,811
railroads
The
35,688,834
$291,416,258
from
bonds
total
on
trust
imposed by law to harass and
by instituting suits, securing
making investigations charging viola¬
and
termination of the
*52,929,600
,30,666,658
opera¬
was
railroads
the
embarrass
indictments
any
$207,820,000
•52,929,600
..
Estates
railway
the performance of duty
Dec. 31, 1943
Equipment Trust and Miscellaneous
Obligations
$35,744,757
by
_____
a
Interest
standing these are days of war stress and manpower
shortages, the Department felt that it was necessary in
"
Funded
from
derived
and
Making
One outstanding exception, however, was
position taken by the Department of Justice of the
United States, affecting all the railroads.
Notwith¬
Funded Debt
Leasehold
$33,415,841
facili¬
received
Company with public authority,
tions of the Federal anti-trust laws.
1Q44
of
income
2,745,905
companies for
of joint
use
amount
sources___
income
an
tions
the
70,437,236
$38,490,662
4,010,044
other
to
of
those
from
;-K stocks
the
ago:
*11
paid
equipment and
Leaving
66,641,178
$37,425,885
excess
it
cooperative.
The table of funded debt at the end of 1944 showed the
T)pp
Company
in
135,604,153
$103,927,898
balance
ties
items
Bonds, out¬
standing in the aggregate principal amount of $1,800,000,
maturing July 1, 1945^
'
a
hire of
i
The relations of this
Reserves have been set aside for the acquisition by the
year
established,
existing plants, at points served
state and national, have been almost entirely cordial and
Company of the Mobile and Birmingham
a
were
a
Other
December 31, 1943.
following reduction from
industries
new
Public Relations
figure of $150,456 annually at
compared with $194,940 at
156,911,481
$104,067,063
balance from railroad operations of
state and local taxes required
The
Company has continued to lend its every aid to
the development of the industry of the South.
approximately $12,900,000 at December 31,
1944, a reduction of nearly 25% since 1932*
The
miscellaneous
income
charge on account of
Southern Railway-Mobile & Ohio Stock Trust Certifi¬
and
Federal,
The
annual rate of
amounted
78
year,
by the Company.
sho\yn in last year's Report at a net amount
$13,500,000 as of March 1, 1944, were at the net
of
Leaving
and additions made to 32
were
cates
by
that of 1943.
over
securities of its leasehold estates owned by the Company,
December
Leaving
cost
maintaining the property
of< operating the railroad was__;
Southern Railway System, 1944 cotton pro¬
duction was 5,987,000 bales, an increase of more than 9%
the Interstate Commerce Commission, less income from
of
The
served
the annual rate of 4.97%.
The average interest payable on the Company's equip¬
ment trust obligations has been reduced from 4.41% in
1930, to a current average rate of 2.60%.
The Company's annual fixed charges, as defined by
March 1, 1945. was at
which
ADVERTISEMENT
.....
agriculture again progressed toward greater
production of food, feed crops and livestock.- j In states11
Southern
Development and General Mortgage Bonds outstanding
on
"1381
Ellis &
Co., Dixie
Building, Cincinnati, died after an
illness
of
several
months, Mr.
Ellis
had
business
been
for
in
the
more
investment
than*
thirty
beginning his career with
Seasongood & Mayer, and organ¬
izing his own firm in 1922.
;
years,
Thursday, March 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
1382
natural
over
Cartels
Delaware Power &
•
Imperil Economic Progress
Light Co.
(Continued from page 1371)
Common
of work or thought.
cess
im¬
task of analyzing in an
the
Federal Water & Gas Corp.
Yours is
partial and logical manner these
grandiose schemes, and of point¬
ing out the fallacies in their glit¬
tering promises.
It is in the hope
-
Common
Southwestern Public Service Co#
of
*
Common
making
small contribu¬
in that task
here tonight.
some
in assisting you
tion
that I have come
A
super-state cartel is an ar¬
rangement requiring independent
enterprises to restrict production,
fix prices and/or allocate mar¬
kets rnade pursuant to an inter¬
national agreement or treaty be¬
tween two or more governments
\Mhich
undertake in
enforce
to
conditions of such
the terms and
Curtis
Paine, Webber, Jackson &
Undermining of Competitive
The
various
under ever expanding
governmental authority.
I shall
discuss tonight only one of these
ist
Stockholders' Reports
general, stockholders''reports of operating utility companies
appear to be as informative as the best type of industrial corporation
report, and somewhat more illuminating than the average railroad
report.
The utilities appear to be making a conscientious effort, to
improve the form and scope of their reports.
Consolidated Edison,
for example, recently mailed to approximately 750 members of the
Tlew
York
Society
of Security^
the fact that the aluminum plant
Analysts a copy of their 1944 re¬
in Queens was operated only part
port, with a questionnaire and
The discussion of
letter from which we quote as of the year.
wartime restrictions would have
follows:
"This letter is inspired by an been more complete if it had in¬
cluded an estimate of potential
article in the recent issue of 'The
revenue
losses from the current
Analysts Journal' entitled 'Retro¬
brownout.
Data on the power
gression in Annual Reports to
Stockholders?' in which the point interchange with Niagara Hudson
is of interest, but might have been
is made that the recent trend to¬
ward
modernizing
and stream¬ amplified in terms of revenues.
The important merger proceed¬
lining has resulted in less in¬
In
ings
formative reports.
for many years
"We have felt
if
that
to
di¬
than
report was to be
our
rected
more
group
one
other, that group should be
the sophisticated investors, those
who can readily comprehend the
financial statements and statistics
any
who at the same
time
welcome
the
information
furnished by a running account
of the year's activities.
!
"We
have believed that this
group, which includes the mem¬
bers of your organization, is, by
reason of ability to interpret the
company to others, the best liaison
:
we
have with holders of large
amounts of our securities.
•
\ "We would now like to know
how closely we have come to pro¬
this
viding
and
report,
with
group
in
wants
and
needs
an
canvassing
to find
are
we
what it
annual
(a necessary preliminary to
company's broad refunding
which will include al¬
program,
most the
the,
debt and
entire bonded
stock)
preferred
dis¬
were
rather more briefly in the
cussed
report than the importance of
subject might have warranted.
chart
The
and
presented
t
the
the
Edison's
comparing
electric and gas
revenues for all utilities, and with
national industrial production for
with
revenues
1929-44, is of interest
the company's sta¬
bility and the relatively sluggish
growth of New York City business
the
during the war.
•
v
system
has come to the front to
questionnaire asks for spe¬
or comment on 14
The
criticism
cific
together with
items in the report,
of
suggestions
general
a
char¬
report
seems
Edison
The
acter.
unusually complete in that it in¬
cludes
bits
of
information
not
the
revealed—such
as
amount
of
depreciation
always
amortization
in
(which exceeds
the
moderately
only
the
consolidated
the
income tax return
amount
stockholders' report);
sion
of fuel costs
and
in
discus¬
and bi-monthly
billing economies; increased main¬
tenance costs due to operation of
sustained
higher
"at
equipment
loads than that for which it had
designed;" and the increase
to offset tax sav¬
its iiting
from
five-year
been
in depreciation
ings
of
amortization
Attention
ment
or
swings
The
war
is
called
$2,100,000
to the adjust¬
to
offset
tax
due to bond retirements.
report
estimates
load amounted
quarter
facilities.
war
the
that
to about
economic progress
reali¬
zation of the gravity of that dan¬
ger, and through you, our leaders
of
business,
industry and
the
us
mean
clear definition .of
a
words
and
exposition of the princi¬
definite
ples
which- we
upon
stand.
So
make
our
all
starting point,
a
as
shall be bottomed
that I shall say
and fervent faith
in the superiority of our Ameri¬
can competitive enterprise system
as a means of raising the standard
of living for all, providing em¬
ployment for those able and will¬
ing to work, and creating oppor¬
tunities for men and women to
strong
a
upon
utilize their talents to
the utmost.
industry
and
Business
dispute.
been
to
These
fruits
result
in
render
products and services at
lower prices through an efficiency
that reconciles a low cost policy
better
Few
voices
private
cartel.
there
But
is
a
of
thought which believes
undertaking
which
is
against the general welfare, and
that
an
thus bad, can
is
conducted
control.
be made good if it
under
government
of
Illustrative
cartel
ernment-controlled
N.R.A.
the
codes
There
ago.
ernment
the
of
were
few
years
the
a
Gov¬
have
we
gov¬
forc¬
ing
upon
American
industries
practices
which,
if undertaken
outside of the N.R.A. codes, would
urging
and
even
Their
have been unlawful.
coun¬
has flourished in Europe
for many years and is a primary
terpart
of
backwardness
the
for
reason
European industry compared with
our
own.
atively
evolution of the car¬
new
tel
idea, under the deceptive la¬
beling of "trade accords." - These
Illustrative of the super-state car¬
nor
face
the
in
of
it
can
feather-
agreements
evils found in private
tel
the
is
abortive
Anglo-Ameri¬
adopt
other classes of service
The report does not include any
discussion
of
certain
important
questions which have arisen with
respect
to
utility
accounting
methods, such as the issue over
"original cost.'! The possibility of
a plant account write-off of some
$66,000,000 is buried in a balance
sheet footnote.
The rapid growth
in the depreciation reserve under
present accounting rules is noted
in the text, but no comment is
made
on
the fact that the
is still low
line
based
on
depreciation
reserve
the straight-
theory
spon¬
sored by the Public Service Com¬
mission of New York
(some time
the Commission suggested a
huge increase in Niagara Hudson's
reserve, on this basis).
ago
The
the
report,
supplemented
informative
com.
by
bulletins, "News
pfds.
pfd.
policies
that
remove
obth
the stimulas and the means to
the
alike
and
in-,
by
reducing
rewards for seeking. It
efficiency
creased
the
penalties for ignoring
i#
unanimous
believe in that principle
then you can¬
not regard cartels, in any form,
as
good business practices.
If
you do not belive in that princi¬
ple, if you favor collectivism in
our economic life, national social¬
If you
and its implications,
national ownership and all
the other philosophies which lead
to the all powerful State, then you
will find cartels an admirable in¬
strument to achieve your objec¬
ism,
tives.
I
When
mean
two
use
the word
covering commodities in which
they trade.
This is the so-called
private cartel.
statements that the pur¬
was to bring about an order¬
government-controlled cartel
such an arrangement under the
the
tion
and
ly" development of the world's oil
resources
through the stabiliza¬
tion of the operations of the in¬
dustry.
Such
euphemisms as "orderly
"stabilization";
"fair
competition"; "rationalized
competition";
"elimination
of
waste" and "fair prices" always
develop ment";
with
or
the
sanction
of
government having jurisdic-j
over such enterprises and it
Views
for
used to describe the
are
of
a
cartel!
should
to
Chicago
sued
serve
on
Stockholders,
1S-
dividend dates, may well
as a
They
are
immediately
model for the industry
in many respects.
objectives
terms which
arouse
command
suspicions
and
close scrutiny.
The
Anglo-American
your
your
Oil
Agreement
Our Constitution makes
the
treaties
law of the land on
supreme
par with the Constitution it¬
self, and overriding other Federal
laws, and State Constitutions and
laws
which may be in conflict
with the treaty.
Thus the reserve
a
of
the
States
would,
through
treaties
dealing
with
them, fall into the orbit of Fed¬
eral
authority and jurisdiction.
powers
As
such a pro¬
lawful way,
declared un¬
matter of fact,
a
only
the
is
cedure
since the N.R.A. was
constitutional,
effec¬
cartelize
to
tively the American petroleum in¬
Even were private car¬
lawful, there are too many
dustry.
tels
enterprises within the industry for
any master plan to embrace all
Those outside of the car¬
of them.
arrangement in a reasonably
time would succeed in de¬
tel
short
To make
feating the conspiracy.
petroleum cartel effective here
it) must
necessarily - be
imple¬
a
mented
lash of govern¬
What is more,
the
by
mental authority.
by
industry,
petroleum
tne
and^
large, wants no part of cartel ac¬
resulted
spirited competition.
Here
tion, since its growth has
from
amazing spectacle of
agencies seek¬
the
had
we
the administrative
ing to force an industry into a
super-state cartel against its
wishes.
Throughout the controvesy over
Oil Agreement, it was diffi¬
cult to avoid the conclusion that
those who had proposed it were
desirous
of taking a
short cut
the
designed to change our American
system over night to the status of
the German
system of national
socialism. Just remember that the
Socialism long have
advocates of
conviction
the
that
a
system
monopolies
extensive
of
con¬
State paved the way
socialist economy.
The Fas¬
and Nazis seized upon ex¬
trolled by the
for
a
cists
isting cartel systems for the foun¬
states.
dation of their totalitarian
those
For
reasons
the
believe
I
super-state cartel is far more rep¬
rehensible and detrimental to the
public welfare than private car¬
into
entered
tels
individual
by
companies, bad as they are.
Other Proposed
of what I
Much
Cartels
have said spe¬
in
regard to the Oil
would be applicable to
similar
undertakings
affecting
other industries.
This use of the
cifically
Treaty,
treaty-making power to override
Constitutional limitations and set
the
transforming our
into National
for
stage
system
American
is
Socialism
danger
a
that
may
During the con¬
troversy
over
the
Petroleum
Agreement, it was reported that
engulf all of us.
international
similar
agreements
contemplated covering ap¬
were
in
60 commodities and
international
trade.
were
said to cover rubber,
proximately
services
These
coffee, shipping cargo
and global airways.
Un¬
doubtedly others had to do with
metals,
leather,
wool,
cotton,
chemicals, as well as manufac¬
tured articles that could be fitted
into a cartel framework.
tin,
sugar,
space
broad,
pursued, to en¬
compass part of world trade in a
super-state cartel system.
More
petroleum and its products, the
alarming, however, this movement
fixing of prices and the allocation
would entangle a large part of our
of
The
Anglo-American Oil Agree¬
provided the framework for
restrictions on the production of
ment
marketing quotas
A
direction
were
beyond
forth
cartel I
arrangement whereby
more
independent enter¬
prises undertake to restrict the
production, fix the prices, and/or
allocate markets or sales quotas
is
The ob¬
proposal
set
vague
an
or
of. this
clearly
never
pose
Collectivism
and
Cartels
protest of the Ameri¬
petroleum industry.
can
jectives
ommendations of
in
an
the rec¬
International
upon
Commission.
Petroleum
Inherent
the implications of
ment
was
the Agree¬
the aassumption of an
obligation by our Federal govern¬
ment, when it concurred in ;such
recommendations, to undertake to
carry them
out in the domestic
field,.
This would necessitate the
exercise
BROADWAY, NEW YORK 6, N. Y.
treaty-making power.
bedding
usually contains provisions for the
of the arrangement.
Gilbert J. Postley & Co.
have gotten
in
Super-State Cartels
The' super-state cartel is a rel¬
be
control;
government would
the authority to fullfill its part of the bargain made
with other nations through the
The Federal
proposed the promotion of cartels
compound
all
the
and govern¬
ment-controlled cartelsTadding to
them a dangerous expansion
of
power in our Federal government
through the treaty-making device.
enforcement
openly
are
inquisitive analyst.
Myers
Wire
today
defense of the so-called
in
raised
—although the data can easily be
worked out on a slide rule by the
or
New England Public Service
Direct
indus¬
practices, whether im¬ can Petroleum Agreement sub¬
posed by government, labor or thq mitted to the United States Senate
summer,
but
subsequently
owners of industry; and it cannot, last
be achieved if we are going to withdrawn under pressure of the
dential
Midland Utilities debentures
29
system
of
freezing
restrictions of bureau¬
the
achieved
cartel
of the
the
with savings to kivest.
tion when
cratic
destroy
inefficiency; raise prices and thus
lower
the
standard
of
living.
greatest service to the Na¬
they constantly produce
their
under
commercial, etc.).
As in
other reports and prospec¬
tuses, no figures are given
on
average kwh; revenues for resi¬
Their effect has
initiative; close
the door of opportunity for new
individual entrepreneurs; destroy
small
business
units; encourage
yond
among
the Tenth Amendment.
in
than 50
country for more
The evil and reprehensible
nature of
such practices is be¬
years.
school
sort
this
of
little unless we have before
the terms
we
are
using, and a
very
tial,
Di Giorgio Fruit common & preferred
Robbins &
people.
Discussions
this
in
threatening trial progress to the detriment of
consumers
and
those
in America. My workers,
desire is to arouse you to a
American
embraces
cartel
private
monopolistic practices in restraint
of trade that have been outlawed
now
Regarding statistics, the tabular
presentation is not as complete as with the payment of high wages.
might be desired.
The table of But that objective can be realized
kwh. sales and revenues would only through constantly increasing
the productive efficiency of every¬
be improved by showing the per¬
centage of the total for the vari¬ one engaged in business and in¬
ous classes of customers
(residen¬ dustry.
It cannot be achieved
one-
of the year's sales, despite
my
greatest danger
many
membership to try
your
in
is,
"trade
opinion, the
so-called
through
control
accords"
cartelize
government
under
trade
world
wide¬
recently
that
movement
spread
The
trade.
of
restraints
monopolistic
of
that
pressures,
period
reflecting
as
toward a collectiv-
and pushing us
Securities
undermining
pressures
competitive enterprise system
our
Public Utility
The
there have been
In recent years
arrangement.
?.n
Enterprise
ESTABLISHED 1879
nationals
their
upon
manner
some
is
resources
reserved to the States
the powers
ment
does
of
not
by
the
an
now
Constitution,
Federal
authority
possess
since
govern¬
which
under
it
our
jurisdiction
The
list
is
sufficiently
if those plans are
domestic economy in the tenacles
with
of the vicious cartel system,
destructive
every
tivity.
repercussions
upon,
other line of economic ac¬
International trade and
domestic trade
are
not two differ-
entthings. They cannot be isolated
in
comnartments,
other.
thine.
Thev
are
one
from
parts of the
This \countrv
the
^ame
cannot
be
cartelized in Its foreign trade and
free
in
its
domestic
enterprises,
(Continued on page 1389)
v
that proceeds
with one
Mr. Wallace and
Planned Economy
(Continued from page 1371)
He visualizes "that continuously
economic planning,
even
apart fiom the vast virtues
urged tor it, seems highly logical.
Do not all businesses, all private
plan,
enterprises,
the better, especially in
more
the
post-war
period.
But so-called
"economic planning" means over¬
all
tion
or
'!
name.
be
.
Putting the matter rather simp¬
ly, if your health leaves something
Example of Russia
of economic
planning is the Russian U. $. S. R.
does
that'
tle
Exposition
side.
system,
but
of
activities
the
of
contrast
sharp
Continuance
is of
to
our
controls and furnishing relief
needed, but in the main
sary
when
leaving economic life to the free
and associations of the
Our apolitical
bill
of
energies
.
with that system.
Economic Planning and American
There
is
tle
is as to the
which
with the
Wallace the question
"a
of motives.
highest
is
there
time
-an
literature
example,
for
significant,
is
book by
Professor Harold J. Laski, now of
the London School of Economics,
was
expressively "Reflections on
the
Revolution
of Our Times."
The opening
"We
are
the
of
midst
any
a
that
is
how such
of
war
arise, so many
be
presented,
have to
resort
would
from
point
different
his
subject
recent
of
book
in
Wallace
work
addressing the
desirable fu¬
American plan by
out a
ture under the
at
and
should
quently
be
noted
where veer rather away
else¬
from that
possibility. Thus, he states in one
of his frequent books:
"We
must
invent,
build
hand.
.
.
17,525,200
Provision for
By
Hayek
no
means
advocate
Gross Income
.
.
.
.
.
.
.
4,858,320
.
.
.
.
.
.
$ 10,354,040
.
.
....
.
.
.
.
.
.
Consolidated Earned Surplus
Summary of
$ 11,782,818
10,354,040
Balance, January 1, 1944
ended December 31, 1944
Add: Net Income for the year
.
.
.
$ 22,136,858
Deduct:
Dividends
(net)
Questions
economy
necessarily
jobs
in
greater abundance
And from the
than free economy?
human
9,795,948
$
.
...
Miscellaneous charges
.
...
.
9,796,085
137
.
Balance, December 31, 1944
.
,.
$ 12,340,773
.
.
.
December 31, 1944
Consolidated Balance Sheet,
Assets
tially at cost).......
Cost of Electric Plant
tioned by
Requisi-
\
•
Stated Capital.,
.
.
$362,760,157
-Capital Stock (Par
.
r
of settlement ript
.
.
...
Miscellaneous Investments v
Debt Discount, Redemption
and Expense on
Issues
,
c
United States Govern-
determined
um
Liabilities
'
v
Rights, Fran--
Plant, Property,
.
2,359,545
.
•! 1
3,089,188
31,
share)
Preferred—
Premi¬
3,466,857 Shares $85,441,811
Refunded
.
period ending
over
December
vam® ^ per-
,
.
($10,536,841), being
amortized
1959,
less
Common—
1
net
70m687 S1S6.185.S08
3'182'805 SharM
amortized
over
liven of such is-
.
138,000,000
long Term Debt
..........
7,899,729
Capital Stock Selling Expense on
Original Issues
3,368,417
Prepaid Accounts and Deferred
Charges
.
.
.
....
7,315,598
sues
Current Assets:
on
.
...
.
Payable
.
S 4.11&.797
Accrued Taxes
.
.
23,815,905
obliga-
oVn t s°8a n d
27'600'00^
Accrued Interest
for Uncol-
.
'
89,028,348
.
•
.
.
.
'
,
'
Contributions in Aid of Construe-
'
Receiv*
lectible
29,339,702
1,405,000
,
Reserves
He-
$726,457
ables
,
dends
ablefleTs
serve
767,764
.
.
.
$ 4,846.370
United States Gov-
Acc
.
.
Current liabilities and Accruals
_
Working Funds
M
Deferred Liabilities
and
hand,
ernment
.
Accounts and DM-
Cash to Banks and
does
com¬
presents two great questions: Can
that system actually supply goods
and
.
Interest and Other Deductions
....
49,746,981
.
...
Net Income
.
.
.
.
$ 15,212,360
...
.
.
4,430,490
tion
1,393,134
»»»»•«•»•
•
Construction and
Planned Economy
,
7,871,365
261,805
Depreciation ... . ...
acquisition adjustments . . •'
Amortization of
points out that if jobs are to be
guaranteed
under
a
planned
economy
compulsion is the only
Planned
the
6,620,591
.
Operating Mate-
and
present
social
carries out and intensifies the law of the jungle."
as
machinery
first
alternative.
put to work new social machin¬
ery.
This machinery will carry
out the Sermon on the Mount as
well
.
Provision for Federal taxes on income
It is one
that
pulsory labor, as has been recently
asserted.
On
the
contrary,
he
Yet it
that not infre¬
participation.
expressions of his
criticize
to
Professor
greatly increased Government activitv
power.
book and
another to answer the argument.
Professor Hayek is an Austrian
economist, who knows revolution
thing
Committee, as elsewhere,
maintain that we may be
able to
exercised* that
to be made to
"The Road to Serfdom."
Senate
does
be
have
dictatorship is thoughtfully
presented in a recent little book
by Frederick A. Hayek, of the
London
School
of
Economics,
Revolution Was."
Mr.
can
The view that planned economy
conmmen-
the
with
entitled
view,
"The
American
very
economy
means
dealing
a
arbitrary
plan."
acute
.
many
would
An
an
but in time of
questions would
difficulties would
so
many
controls
so
we
tator,
its supposed
is impossible
objective,
peace
moving into an era of plan¬
ned society: what is quite un¬
certain is the purpose for which
can
planned econ¬
dictatorship.
In
there is one clear
social
are
we
of enter¬
over
without
work
time
Farther on Professor Laski says:
certain
take
in spite of
benefits, is that it
in the modern history of
is
consequence
Government
The trouble with
the human race."
"What
.
ment, amount
see
$ 17,468,020
Taxes—State, Local and Miscellaneous
system
capital¬
and takes the
omy,
period of revolutionary change
that is likely to be as profound
as
on
prise.
to
\
$ 64,959,341
.
.
.
chises, Etc. (Stated substanultimate
Government
sentence there is:
in
profit
based
of
spending
and risk taking is likely to be the
The
unlimited
that the title of a recent
.
.
kind of private en¬
new
a
risk."
economic planning.
It
of
vides the capital
from
philosophers and
widely read writers, which does
make for the
adoption here of
coming
•
Earnings
Operating Expenses and Taxes
Operation and Maintenance
terprise which is not based on
private initiative—a system un¬
der which the government pro¬
At the same
astonishing
of background
amount
kind
new
ism:
undertake,-
would
Mr. Stuart Chase
as
which is not
ultimate effect of measures
he
ultimately supported.
fear of inflation, of
crushing national debt, of breaucracy
and
paternalism
all
as
bogies. He sees ahead
does not do so: with Mr.
Wallace
Gross
the
regards
Mr.
Certainly
.
Surplus Account
with- lit¬
Government
how
to
are
Sucha writer
Comparatively few in our coun¬
enterprise.
..
Consolidated Income Account
great
a
concern
finances
,
try advocate the substitution here
of "economic planning" for Am¬
erican
the
-
.
Consolidated Income Account and Summary of Earned
for fthfc Year Ended December 31, 1944
is another matter.
what the citizen desires,
Enterprise
of
V-
.
YEAR 1944
attraction in
supposing that the Government
can in some way pay for most of
people.
rights, our liberties, are associated
.
in
control
that
of
It is one
thing to take the industrial plants
created
by the Government for
war
production and make them
available for private industry in
peace, and quite a different thing
to keep such plants in peace as
Government plants, even though
called "yard sticks."
exercising neces¬
state
a
and such control
peace.
We still adhere to the basic
idea
as
must be continued in transition to
peace
in
course
own.
Group
COMPANY LTD.
COMPANY)
(AND SUBSIDIARY
standpoint,
can
we
afford
v
*
rial
and
Sup-
plies, at cost
.
•
Earned Surplus
'
40,262,595
3,385,735
.
,
<
.••••••
-*
$427,055,229
(THE ABOVE STATEMENTS ARE
CONDENSED FROM THE PUBLISHED
\
-
was
Colonel
Air Force Service Command.
SOUTHERN CALIFORNIA EDISON
time, control of the use
ef¬
war
fort is necessary,
masses."
The Russian domestic plan
know
we
lit¬
1941,
in command of the
was
Service
37th
there.
In
toiling
the
Lawrence
all
greatest
he
when
released from active duty,
beloved
our
over
the
month,
of material and of production
and
guides
which
Party,
Communist
what
say
activities by the Soviet State
all
work
must be
private in¬
jobs in that area, the Government
would have to have most of the
not by outsiders
by recognized
Russian au¬
thorities, bases it on "liquidation
of the capitalist economic system"
and substitution of "planned di¬
rection of virtually all economic
that
turn
last
until
TH.ANNUAL REPORT
jobs
Most
dustry, not in public works.
If
government is to attempt to in¬
crease very much the number of
with objectivity
to its domestic
of
Army Air Corp. from July,
We Am¬
monopoly and
of
monopolies—the superstate."
49
guarantee
conceived
meaning.
in
miration for the war achievement,
as
paralyzing
to
—otherwise the guarantee has
that extraordinary
case
we
country. to
E.
formerly, manager of
branch, has
joined the New York office, 25
Broad
Street.
Serving
in the
the
guarantee
the direction of jobs 'antf of •
development with complete ad¬
any
desired, and someone sug¬
gests a new remedy claimed to
assure
the
greatest
vigor and
an¬
Walter
would involve the Government in
best example
and in
could
be
Exchange,
Col.
Lt.
that
Lawrence,
inattention or blindness
by
only
Co., members of the
Stock
the firm's Los Angeles
springs of vitality,
is it ready for the
ericans do not love
freedom.
American the right to a
desirable
job—in the end
this
hopefully
One may view
has not lost the
&
York
nounce
the world has ever seen
mentals of
;
The
Kaiser
fruitful
most
"The
blueprint of the official.
to
of
New
proved, bqt still true to the funda¬
every
r
economy
American
basic
the
course
With Kaiser in ft. Y.
prefer
tried route
.
supposed
Government
its less semantic
socialist state, by
it
Let
planning is the
ment of economic
inevitable.-
seems
ning from within «by partners or
boards of directors. Full develop¬
alternative?"
of
the
operation is deserted, the end
or
plan¬
be confused with
to
to suggest as
The alternative
repeat
plan, constantly corrected and im¬
regulation of private
actual management
and
business
Such planning is by no
business.
means
the
for
is
between
line
real
but
Government
direc¬
operation of practically all
enterprises,
those
difficult
outside
planning by persons
I
nor
Approach to continuously plan¬
ned relationships is not likely to
come through direct advocacy, but
step by step, without declaration
or realization of objective.
If the
the
and
do,
they
Indeed
asked?
an
still
might
You
upon
sound health habits.
"But what have you
row."
Lf. Go!. Lawrence Is
effect
rely
to
do not necessarily
might well distrust the
of the powerful
you
you
remedy.
asked
by
those
who
oppose
planned
economy and steps leading, to it,
however
sincerely proposed, is
which I call the Land of Tomor¬
eagerly
is
it
com¬
pulsion?
*
The question insistently
relationship
harmonious
planned
ultimate
take it:
of liberty,
basis
that proceeds on the
«.»
its face,
the
on
vitality,
basis of
to replace a system
On
1383
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4372
.Volume 161
'
12.340,773
—*
$427,055,229
ANNUAL REPORT)
15th.
of the
The Defects
PRIMARY MARKETS IN
International
Royal Bank of Scotland
Incorporated by Royal Charter 1727
Monetary Fund
STOCKS
BANK and INSURANCE
Thursday, March 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
1384
HEAD
(Continued from first page)
In order to explain to you
Fund.
Huff, Geyer & Hecht
York
New
Wall
67
Office
Post
10
Street
231
Square
La Salle Street
S.
CONNECTING:
SYSTEM
WIRE
PRIVATE
LOUIS,
ST,
PHILADELPHIA,
ANGELES,
LOS
SEATTLE
FRANCISO,
SAN
TELEPHONES TO
Enterprise
HARTFORD,
PORTLAND,
6011
PROVIDENCE,
Enterprise
2008
7008
Enterprise
Insurance Stocks
this column presented the 1944 operating results,
Two weeks ago
share basis, of 14 representatives fire-marine insurance com¬
panies, compared with their 1943 figures.
This week similar com¬
on a
per
parisons are presented for an additional 19 representative companies.
The figures are on a parent-company basis and do not include the
earnings of partially or wholly owned subsidiaries.
Underwriting
profits have been adjusted to in--*
elude the change in stockholders''
the
of
premium
equity in tne unearned
will
It
19
companies
underwriting
reserves.
losses,
-1944-
1943
Boston
Inv.
Fed.
Oper¬
Net
Inc.
Tax
ating
Und.
—$0.14
$0.42
$0.05
Fire
Falls
Globe
&
—
Liberty
New
Brunswick
New
York
—
&
F.
M
1.69
1.49
0.86
1.72
1.12
settle
the
1.54
0.59
2.11
0.28
1.59
0.10
1.77
about
10%.
3.24
1.50
5.65
2.29
3.55
0.78
5.06
the
1.45
0.91
2.30
0.25
1.44
0.61
1.33
0.47
0.25
0.07
1.16
0.25
0.98
2.36
0.01
3.77
2.67
2.43
CrO.Ol
—0.23
3.20
1.03
0.23
—
—
—0.60
-
1.52
0.17
at
0.13
0.37
0.03
0.21
—
0.07
0.38
0.01
0.30
0.57
1.96
0.20
1.19
—
0.30
1.97
0.18
1.49
0.61
—
—0.18
These
once.
all
taking
There
operations
this
over
broke
1.18
1.52
1.34
1.12
0.34
1.28
0.58
1.18
0.35
1.41
1.78
0.70
2.87
0.96
1.87
0.18
2.65
ances
2.70
0.83
3.85
1.83
2.83
0.48
4.18
1.52
0.01
1.90
0.70
1.68
0.06
0.92
2.63
0.81
3.23
1.41
2.68
0.74
3.35
That was during
the panic of 1907.
At that time
1.73
0.85
2.53
0.54
1.82
0.40
1.96
there
while
even,
11
companies showed net underwrit¬
ing profits. However, these results
are
before "Federal Income Taxes.
In
all
three cases, viz:
Republic, National Fire
and New York Fire, net invest¬
Globe
except
&
ment income
was
sufficient to off¬
set
underwriting losses.
Moderately better total net
are
Marine and United
&
shown by Baltimore
American, National Liberty, New
Brunswick, North River, St. Paul
As a group, however, total
operating profits in 1944 were
approximately 15.5% below 1943
results.
Net underwriting profits
Fire.
net
were
73 %
lower, net investment
1.6% higher and Federal
income
Service
shows
and
for 215 stock fire
which
the
$1,622,362,000
816,211,000
894,623,000
1,011,440,000
40,460,000
—81,109,000
76,471,000
81,309,000
24,841,000
10,241,000
62,577,000
underwriting
Federal
taxes
__
income.— :
______
Dividends
66,688,000
Underwriting results are sliown
a
statutory basis and consecpehtly do not reflect the stock¬
holders' equity in the increased
unearned premium reserves.
The
aggregate increase in this item
amounts to $78,418,000, and since
the stockholders' equity in this
on
increase is conservatively assured
at 40%
$31,367,000, it is clear
adjusted underwriting
results, in the aggregate, approxi¬
or
1944
mated
around
is
$10,000,000
profit.
too
early to attempt to
prognosticate what the experience
fire-marine
insurance
panies will be in 1945.
com¬
It is fairly
safe to say, however, that invest¬
ment
income
will
probably be
moderately higher than it
1944
as
was
was
higher
in
than
$104,766,000
+
6.9%
+
78,418,000
+
9.6
+
83,438,000
+
9.0
61,569,000
—152.2
4,838,000
+
+
6.3
14,600,000
—
—
58.8
4,111,000
—
—
6.2
1943.
Underwriting results will
depend principally on the fire
record; if fire losses decline below
the $423,538,000 of 1944, under¬
writing results should be favor¬
ably affected. Fire losses in Janu¬
ary and February were approxi¬
by actual delivery of gold
and currency.
But in 1907, runs
on
the banks occurred and they
1945.
withdrawals continued,
When the
were
the usual settlement of debit bal¬
Then
devised
by which the clearing house is¬
sued certificates, usually of large
denomination, which showed that
ances.
bearer
member
was
bank
settlement of balances.
tificates
had
a
were
then
These
used
cer¬
the
in
place of money. They were issued
in the following manner:
The bank short of money sub¬
mitted certain of its notes receiv¬
able to
a
committee of the clear¬
for examination and
with it an application for credit
with
the clearing
house for a
given amount.
If the Committee
found the notes tp be acceptable
collateral, and found the bank's
ing
house
clearing
Agricultural
a
few months the
con¬
house
certificates
were
retired.
us
compare
the
pro¬
posed Bretton Woods Fund with
the plan the banks followed in
1907, because conditions
-
are
very
In normal times the
na¬
»
tions have settled their trade bal¬
Laird, Bissell & Meeds
Member*
New
York
Stock
120 BROADWAY, NEW
Telephone:
Bell
countries
vive
active
Exchange
ofkJlli.)Cu)c)et Co.
Members
YORK 5, N. Y.
and
BA^clay 7-3500
Teletype—NY 1-1248-49
(L. A, Glbbs, Manager Trading Department)
1
New
other
York.
Stock
leading
WALL ST.
Telephone
Exchange
exchanges
NEW
YORK
DIgby 4-2525
5
with gold by
shipment from
one country to another—in prin¬
ciple like.the banks settled be¬
fore
1907, although,: of course,
ances
there
was
no
institution
i to the clearing house.
on
3
49
trade.
the
So
devised
of
method
the
as
64 New Bond Street, IV. I
TOTAL ASSETS
representatives of
have
governments
Fund
Charing Cross, S. W. /
Burlington Gardens, W, t
to re¬
world
multilateral
the
£115,681,681
accom¬
plishing this.
Associated Banks:
that the manager
of the clearing house has. become
the manager of the Fund, and in¬
stead of the banks being the mem¬
bers
of the clearing union, we
Consider
find
the
now
44
daily set¬
tlements, as the banks have in
clearing their checks, but with the
have
ume
into
flow
the
settle
later
or
Bankers
difference
Head
us
the
for
which
Fund
in
Bishopsgate,
26,
In
India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
^Subscribed
Paid-Up
The
Capital
£4,000,000
Capital
Reserve
£2,000,000
£2,200,000
Fund
Bank
conducts
description
every
of
banking and exchange business
that it applies to
suppose
Government
London, E. C.
short of those currencies and gold,
let
Office:
Branches
by
itself
it finds
If
gold.
the
to
Kenya* Colony and Uganda
as
payment to the exporting coun¬
in currencies acceptable to
or
Co.
of INDIA, LIMITED
tries
them
Bank, Ltd.
NATIONAL BANK
be¬
the vol¬
of goods flows more heavily
one country than its exports
out, that country must sooner
countries, and
tween
a
transactions
innumerable
Deacon's
Glyn Mills &
no
revival of world trade there will
be
Williams
Of
nations.
member
they
course
OFFICES:
Bishopsgate, E. G 2
8 West Smilhfield, E. C. t
were un¬
order
in
Scotland
Trusteeships and Executorships
the purpose
also undertaken
of this illustration we will imagine
is in operation and the applicant
country a member.
is
here
Now
tions
of the
one
to the
have
we
in
pays
demand
upon
objec¬
The
charges. The note
into
bank
a
be very
collateral
without
demand of the clearing
its
stituting
drawn upon
It
cur¬
much
in 1907 putting up its
That would
note.
note
the
of the country giving the
rency
like
the Flindiriust
on
converted
be
seems
own
and
upon
itself.
to those of us who have
no
based
credit
on
formance and those
It is the
credit.
of
our
studied
the
bers
distinction
countries
those
between
good
is
There
having
past
having
per¬
a poor
opinion of mem¬
Committee who have
plan
and
A Second
This
who
have
brings
biguity.
I
of
sions
the
you
for« other
Fund
so
long
currencies
in
the
as
am-
.
that those of
sure
Fund
found
have
it
with Lord
Keynes' proposal for a
union, which was the
plans for stabiliza-
clearing
first of
these
>
,
tion of currencies.
his
In
presses
plan, Lord
clearly the
Keynes
ex¬
purposes
for
which the plan is drawh and the
reasons back of them in a very
lucid manner.
I think it is easy
understand what his plan con¬
to
templates.
In the proposal for
Fund, however, there are no
the
explanations, but a very brief and
general Articles of Association
prepared in a legalistic way to
such
extent that
an
if it were
,
a
domestic corporation, we could
properly
cies
am
difficult to interpret; I ask
to compare this document
very
delegations that many of the
countries will feel that they have
right to exchange their curren¬
second
who have studied the provi¬
you
feel
a
to the
have of the pro¬
we
posal of the Fund, namely, its
talked with members of the vari¬
ous
Objection
me
criticism that
house sub¬
cashier's check
long been in the banking business
that that is not the way to lend
money.
;
of which refers to the credit
Fund.
low interest rate
a
the form of
conditions,"
four
under
rency
none
worthiness of the applicant.
applicant does not put up colla¬
teral. but merely its own note
without maturity, non-negotiable
and non-interest bearing, although
it really
bers in exchange for its own cur¬
sure
that
all
could
it
the
function,
have
would
before
determihe
to
;
courts
the
meaning.
We know from
experience that
contract to be successfully
performed must reflect a meeting
of minds.
It must be apparent to
any
that in the present case
compromises
were
made
one
any
many
and
document
a
was
drawn which
might be interpreted in different
ways
by different persons.
The discussions that have taken
place in this country and in Eng¬
land
evidence
are
that
there
is
difference of under¬
standing between two of the prin¬
cipal members of the Fund. Cer¬
tainly the men who proposed this
already
a
;
a
member's plan are experts in the use of the ,
collateral security gold, English language and they could
silver, securities or other accept¬ have expressed their meaning in
able assets having a value suf¬ a
way
that even bankers and
ficient in the opinion of the Fund members of Congress might un¬
to protect its interest and may derstand. One wonders why these
require as a condition of waiver; masters of English prose did not
the pledge of such collateral se¬ give the world another exhibition
of their talent. The answer, howcurity."
.According to Dr. White's testi¬ ever, is not difficult to find. Dr.
White, in his testimony here and-',
mony, he believes that the man¬
consideration
into
pledge
as
.
,
let
Now
Insurance
«
plan
ing house and that the certificate
was receivable by all members in
similar.
«
a
fidence had been restored. Money
came
into
circulation
and
the
Bought—Sold—Quoted
»
scarce
paid off their obligations as
rapidly as conditions improved
Request
-
and some
unable to provide for
became
banks
"
Bank & Trust
a
vide
those
ances
paid out large amounts of money.
■LONDON
currency.
or
they do not vio¬
late
the purposes of the Fund,
mately
12%
higher than they
which,
as
you
know,
are
so
were
in the first two months of
broadly drawn that there could be
last year. Companies which wrote
financial condition showed it to. many different interpretations in
a
relatively large proportion of
be solvent, it would
enter into the application of them. We think
lines
other than
fire, such as
that each loan should be stfidied
a contract with the bank whereby
ocean
marine, inland navigation, the bank pledged its collateral in and that proper security should
motor vehicle and extended cov¬ return for clearing house certifi¬ be taken. The authors of the Fund
In this manner the banks agreement evidently had in mind
erage, which were profitable, did cates.
the necessity for some such pro¬
better in 1944 than those heavily helped one another and created a
credit
mechanism
which
tided gram because in Article 5, Section
underwritten in fire. By the same
4, there is a provision for waiver
them over the crisis.
token such companies would seem
of conditions, and in this section
Because the clearing house ex¬
it says that the "Fund shall take
to
have the
best prospects
for acted a stiff rate of interest the
Centra] Hanover
on
Reserve
the practice of
the banks to settle their debit bal¬
and within
Bulletin
Federal
credit of that amount at the clear¬
+
—
no
were
Banks and it was
the
928,002,000
written
investment
following summarized
Change
Unearned premium reserves
Statutory
companies, from
1944
$1,517,596,000
surplus
figures
to meet
emergency.
banks
tabulation has been derived:
Net
premiums
aggregate
had to be changed
money
income taxes 48.5% lower.
1943
Capital
States
A recent issue of Best's Bulletin
op¬
1944 compared
erating profits in
with 1943
Fire
--
gold
throughout
become
therefore necessary to pro¬
some
sort of assistance to
It is
when this method of settling bal¬
1.41
_
....
has
of the banks
some
able to get the
however,
0.57
an
gold
Objection to the Fund
time,
a
was
legal
in
settled
are
place
country daily.
are
runs
You will notice that
balances
funds
clearings
total
1.98
__
■___
Fire.
States
American
1944,
0.28
1.48
0.63
1.65
Washington
Westchester
of
0.65
2.90
1.79
—
Security
It
0.20
0.39
Paul
that
1.47
1.35
cleared daily
with a compara¬
tively small amount of actual pay¬
ment of money.
In other words,
the amount of money needed to
are
0.50
Fire-
River
Providence
Net
34.23
31.33
0.50
—
ing credit balances.
In this man¬
ner enormous quantities of checks
1.42
—
Fire
National
United
1.08
give the clearing house checks on
the Federal Reserve Bank in set¬
tlement of the debit balances. At
the same time the clearing house
issues its checks to the banks hav¬
1.76
Insurance
National
St.
$0.04
made, the debtor banks
ings are
1.16
—
-
-
Homestead
North
$0.04
S4.40
38.82
0.38
ating
Soon after the clear¬
other banks.
2.75
...
Republic
..
Hartford
Home
2.44
1.33
on
the
by
of the clearing house
readily determines the amount of
debit balances against those banks
having more checks against them
than they have on others and a
similar amount of credits to the
3.91
Glens
Hanover
31.74
0.13
-
Oper¬
Tax
Inv.
$0.23
9.52
Insurance
Fed.
Inc.
$0.44
Net
Und.
Franklin
Total Net
Net
Total Net
Net
Baltimore American
exprienced
Baltimore
PER SHARE
EARNINGS
NET
that seven
observed
be
drawn
struck
balance
A
manager
E. A. VAN DEUSEN
By
checks
the
return
in
itself.
—
the
of
member
a
clearing house delivers its checks
on
the other banks and receives
Bank and Insurance Stocks
This Week
is
that
bank
of
unequal, some of the great trad¬
ing nations are unable to make
settlement in gold.
Just as in
1907
iting a clearing house in one of
our large cities.
Clerks for vari¬
ous banks sit at a high desk. Other
clerks walk around the desks and
deliver bundles of checks.
Each
BOSTON, CHICAGO,
YORK,
NEW
Analogy
Let us assume that we are vis¬
CG-105
NY 1-2875
understanding of the Fund, I
use an illustration:
The Clearing House
7535
FRanklin
0850
HUBbard
WHitehall 3-0782
our
would like to
4
Chicago
9
Boston
5
distribution
OFFICE—Edinburgh
Branches
account
of
the
fact
similar
But
now,
that
the
,
agers
into
of the Fund should inquire
credit worthiness of the
the
applicant for use of the resources
of the Fund, but it seems evident
that the representatives of other
in statements that he made at the
St. Louis meeting, explained that
the Fund
to
close
tween
was
the
adopted
chasm
public
as a
that
opinion
bridge
laid
be¬
in
the
properly refer United States and public opinion
in the United Kingdom.
In our
to Article 5, Section 3, in which it
country there is still a strong
says that "a member shall be en¬
titled to buy the currency of mem- feeling for hard money and the
countries may very
*
Whereas in "Eng¬
a
strong feeling
standard.
gold
land
there
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4372
Volume 161
is
capital funds and the agreement
of one country to assist another in
carrying out its transfer of capital
It will evidently be neces¬
favor
against the gold standard and in
of
a
managed currency.
funds.
Therefore, it has been necessary
sary
for
White
Dr.
assure
that
us
does not interfere with
the Fund
the
to
operation of the gold standard
of
any
such dividend
The Industrial Trust Co.,
consequence
R.
dence,
I.,
is
capital stock (par $20).
of the
government's
is being
Unfortunately, there is
no
court
be
interpreted because the
provides that the in¬
terpretation shall be by the exec¬
can
instrument
utive
the
In' other
directors.
who
men
words,
differ in the
may
reach
the Fund
is
or
they
or
interpretation must decide,
must
else
compromise
a
failure.
in
will end
It
belief that such will be the
our
and if the Fund should fail,
case,
it will not only fail to
bring about
international re¬
harmony in our
lations, but it will create discord
and
effect
in
Again I
be
to technicalities.
to
this
lieve
We
because we be¬
it will end in failure
that
and will
bring about disharmony,
and will encourage
the opponents
of international cooperation.
Criticised
of Fund
Control
third
The
point to which we
wish to call your attention is that
of the
delegation of powers; Un¬
the executive direc¬
appointed by the Pres¬
ident subject to confirmation by
der the plan
tor will be
the
After
Senate.
his
confirmation,
responsibility is solely to the
The executive director
President.
himself appoint
may
who
his
in
absence
the full authority of
This
director.
approved
does not
alternate
an
accept
the executive
may
alternate
must be
by the President, but
require the confirmation
Now in all banking
of the Senate.
operations with which we are fa¬
officers
executive
the
miliar
are
required to report to an executive
committee and their actions must
authorized
be
a
We
of this control
that the lack
feel
is
confirmed.
or
great weakness in the
very
plan.
In
character,
of this
institution
an
involving as it does
great national impor¬
tance, it seems to us that the ex¬
of
matters
should
director
ecutive
be
re¬
have approval from
somebody, such as a committee
suggested in the report of the
quired
to
American Bankers Association, or
to Congress
itself,
or
to some com¬
It is easy
mittee of the Congress.
to
that the executive directors
see
United King¬
dom and Russia can largely con¬
trol the actions of this organiza¬
tion.
We do not know what au¬
of the United States,
thority the other nations will give
representatives,
their
to
should
they
but
the
follow
if
same
course
that is here recommended
three
individuals
have
would
have
powers
economic
greater
than
been conferred on any¬
ever
body in the world.
realize that there must be
We
delegation of power sufficient
to operate efficiently and prompt¬
ly, but we urge that some body
of control be required which will
have authority over our .executive
a
-
director.
Managed
Toward
Tends
Fund
concluding
In
wish
call attention to what to
to
is
me
of
the
statement, I
my
the
dangerous
most
Fund
aspect
and that is its ten¬
dency towards managed economy
and that is totalitarianism. If, as
should
its
members and its members should
acquiesce in that control, then we
<would have in operation a body
which to a degree managed the
economy of each member country.
Dr.
White feels, the Fund
exercise
control
strong
over
studying
the
plan, any member country
following the instructions of the
management of the Fund will in
turn
haye to apply very close
management of exchanges in its
As
own
the
you
will
country.
reference
see
on
For example, take
to
the
transfer of
are
order
live
to
up
as
$42
each
per
April 21,
four
000.
one
share.
1945,
will
be
stock,
of $20
by
a
the
sale
30,
1945,
V
In the opinion of
(exclusive of
savings banks)
Banker
maintain
of
savings deposits of
cial
institution
As
•
Messrs. Hinck¬
Dec.
of
Company
30,
finan¬
any
Island.
Rhode
in
1944,, the Trust
administering trust
was
department' assets
value
pany,
Dec.
New
It has the largest amount
nation.
of
legal counsel for the Trust Com¬
G. H. Walker & Co. and the as¬
of
as
1944, it ranks third in
ley, Allen, Tillinghast & Wheeler,
dealers, for resale to the public.
mu¬
compiled by
England and seventy-first in the
50,000' additional
of
On the list of the hundred
the American
value
par
$1,000,000
remaining
shares.
dealers, and a group of associated
sociated dealers plan to
with
stock authorized but not yet issued
Walker & Co., investment security
it
tual
capital stock has
On March 27,
each.
the
sue
banking institution in Rhode
largest banks,
the board of directors voted to is¬
H.
G.
est
Island.
issued which is divided into
shares
subject to double liability.
The Trust Company is the larg¬
Company, through its
common
authorized,
fully paid, non-assessable,
and not
be declared
may
as
200,000
Such stock
to
of
been
Stock¬
1945,
12 o'clock
sold
as
properly
authorization, will constitute valid
At the present time $4,000,-
000
shares
is not subscribed for by stock¬
holders
member's
a
issued
be
May 1, 1945
amended, has an au¬
thorized capitalization of $5,000,-
entitled to subscribe for this
noon
to even con¬
censorship of mail in
to
at
for
stock at any time up to
necessary
the
aggregating
with
book
a
approximately
$121,000,000.
the shares offered have been
obligations to the Fund.
Fund Will Require Control of
Foreign Exchange
It is
opinion that the Fund
successfully operate except
our
cannot
use of extreme powers
will in turn require the
the
by
which
members to manage
meticulously
foreign exchange transactions. Or,
in other words, we see here an
economic super-state imposing its
will
its members and the
on
in turn
bers
ing
that
adopting
or
^EG.y.S.PAt.O^'^SSs
mem¬
,
?
4
\
M
^
<!
\
1 '
'
'
v
*v
^ '
, -1 I.
■» '
'"
'
-
,
'
7
'
I '
■< ■« '
t
extend¬
Now we have all been told
benevolent despot is the
a
»
«
for managed cur¬
program
a
rency.
Future of Insurance
best
government, and as long as
the Fund is operated wisely there
Companies
will
probably be little trouble,
but it requires a large degree of
optimism to believe that all 44
nations will at all times be satis¬
The insurance
fied with the actions of the Fund.
industry is being
If
they feel badly treated or dis¬
satisfied with the operations of
the
have a right to
withdraw.
That
privilege
ap¬
plies, of course, to the United
States, but as we are today the
they
Fund,
fa vored nation
most
of
liquid
in the
resources,
way
with¬
our
attacked from three vital
i
'
1
.
*WV
doubt, endanger
the Fund and most likely would
The
.
bring about international discord,
the very thing that we are now
attempting to prevent.
In conclusion, I would like to
which
the
sacredness of
the
emphasize
trust
in
we
United
the
hold.
States
By reason of our
natural resources and
our
industrious people, we
can
make a great contribution to the
well-being of the world.
If we
act wisely we can help others as
wealth,
well
ishly,
world but
for
is
It
well.
we
ourselves
to
that
11
.j,
v.1
as
that
reason
b
\
,
%
**
'
'
4*
angles
'
,
\
1\
' '•'
'
/•
v '
'
i V
/
.
on
will probably grow
rate cuts
*
Portfolios
on
1
-
V"
•
,i
1
,
immediate relief is in sight.
'
" vV
Tn*
no
?
'
i
,,
,•
<v
I-
,
']*:
rv.f
'-rr
i
v>
'' "
'
^
•,.
.
(3) Increased Fire and Casualty Losses
These
losses
he
can
largely reduced—Loss-ratios
are
in¬
versely proportioned to municipal fire, police and traffic
Bank for Reconstruc¬
signals supplemented by sprinklers, automatic alarms and
Development, with its
amended, as will be later
terms
1
degree of injury sustained will depend upon future
1
and
tion
-
interest rates from which
adopt the plan for the In¬
ternational
l
>
public insistence
The
urge you
and to
1'
(2) Lower Income
to postpone action on
the International Monetary Fund
we
'
act fool¬
bring harm not only
we can
the
to
If
ourselves.
i
stronger-—with the agents the greatest sufferers.
our
as
w
(2) Demand For Lower Rates
drawal would, no
well-trained manpower.
explained to you in detail.
stocks
Upon these the value of insurance
largely depends.
N.Y. Siock
Exchange to
Compile Credit Data
York
New
YOU CAN HELP
Board of Governors of the
The
Stock
Exchange
on
March 23 asked member firms to
Reduce Fire and
Casually Losses by Recommending—
report each month the amount of
credit being extended on securities
(1)
A FIRE ALARM BOX
firms
(2)
BETTER "HOUSEKEEPING"
(3)
ADEQUATE POLICE PATROL
U. S. Government obli¬
(4)
SPRINKLER SYSTEMS AND AUTOMATIC FIRE DETECTION SYSTEMS
gations; the amount of their cus¬
tomers' free credit balances; and
(5)
TRAFFIC SIGNALS
to
Economy
be
may
that
believe
this
on
charter,
holders of record March 30,
institute
exchange
controls
capital transfers. Some com¬
tinue
not objecting
are objecting
program
held,
country, which, as now, will read¬
mentators
will
about
or
May 1, 1945.
on
The Trust
its
The stock
offered in the ratio of
share
new
changes, we are bound by the
agreement to
assist any other
boomerang.
a
say we are
regulations
about
capital funds.
If
we in this country should not at¬
tempt to control the flow of capi¬
tal funds, believing it better to
have free
and unhampered ex¬
about control of
over
to
stockholders 50,000 shares of new
tory to some agent of government
ily
payable
Provi¬
offering
that it will be consistent with the
before which this Fund agreement
on
and
and, when issued pursuant to such
and will not be entitled to receive
will have to give proof satisfac¬
gold standard.
stock
new
G. H. Walker Underwriter
Everyone having foreign exchange
transactions
The
duly
fights during the
outstanding.
are
and dated
emphat¬
ically inform the House of Lords
that the plan is the exact opposite
and for Lord Keynes to
13*5
market for the
period they
Providence Issues Dts.
to have almost complete con¬
of
all
foreign
exchanges.
trol
a
Industrial Trust of
"
of
customers
margin
carrying
tended
such
of
amount
on
of
amount
the
have
on
member
the
accounts;
credit being
cash
hand and
on
such
ex¬
The
deposit with
business
each
of
are
on
the
to be submitted
The
promptly
end
reports
as
data
with recorded performance of police duty.
at street intersections
of the total fires.
If municipal
buildings involved then over 50%
70% of the losses occur as a result of only 4%
alarm
of your
boxes
had
been
on
this
4%
of
the
total fire losses might have been eliminated.
-
-
^
;v777iy- '77
.
are
possible
of each month
but
day of the following month.
The
the
keeping the property free of rubbish.
—
of the close of
not later than the fifth full busi¬
ness
—
the last business day
month.
to be filed as
after
*
fire
reports
—
at every fire hazard.*
firms
banks.
to the Exchange as
—
Exchange will consolidate
reports and make public the
monthly.
The Gamewell
Newton Upper
Falls
Company
' '
Massachusetts
,
Wheeling Sleel Corp.
Bonds Offered Publicly
$230,000
;
banking
A
CANADIAN BONDS
by
headed
group
Kuhn, Loeb & Co., on March 27,
offer a new issue of $24,000,000
Dominion
of the under¬
include Lee Higginson Corp.; Harriman Ripley &
Co., Inc.; Blyth & Co., Inc.; The
4l/2% Bonds
Price 115
to
yield 2.00%
Direct Private Wires to Buffalo#
toronto and Montreal
,
Y;'•
|
>"" ';>>
:p;l: I
■
;>"•« f- •'
Dommiom Securities
Grporatiojt
i
„
New York 5, N.Y,
40 Exchange Place,
Goldman,
Corp.;
&
Freres
Lazard
Co.;
Alex. Brown & Sons; Baker,
Watts
Stein Bros. & Boyce; Mackubin, Legg & Co.; Hayden, Mil¬
ler & Co.; McDonald & Co.; Mer¬
& Co.;
Bell System
Teletype NY 1-702-3
House
Co.; Field, Richards & Co.; The
rill, Turben & Co.; Curtiss,
Sees Russia
&
Important
•
(Continued from page 1373)
billions of dollars that have
so
extensively quoted, or
that this policy will be continued
indefinitely. Capital cannot con¬
many
been
indefinitely in one
direction
unless
there is some
chance that the flow of goods and
services in the other direction will
offset it.
Trade is an exchange,
and to talk about a one-way 'ex¬
tinue
economic consequences of
require
will
war
One is the immediate
reorganization of the transporta¬
tion system; the other is the early
re-equipment of agriculture with
order
in
production,
food
minimum
the
industrial
the
of
other
and
machines
of
means
to provide
requirements
areas.
For a
following the war,
Russia will buy tremendous quan¬
tities of transportation materials
and agricultural
equipment, in¬
cluding supplies for plants manu¬
facturing these items in Russia.
To a smaller extent, purchases of
foodstuffs, seeds, breeding cattle
short
and
period
first
purchases
will
Russia
sential.
are
finance
forthcoming; but she
will not hesitate to buy on a cash
basis.
Deliveries will be needed
loans
are
with those countries able
deliver without delay.
to
quantities of all types of capital
goods and equipment.
Russian
plans to expand
her economic
base in the Far East will require
shipments of industrial supplies in
almost endless quantities—if they
can be financed.
It is in connec¬
tion with these needs that the
term
medium
of
long-
and
loans will become most im¬
portant."
concluded
that
"both Canadian and United States
have
exporters
trade
Russia, but it is
attitude
to
or
believe
wild
estimates
that
hear.
Their
thinking
more
realistic
if
all
they
will
on
dull
& Co.
withdrawn
was
Mr.
22.
of March
as
has
Lemmermeyer
ac¬
quired the Exchange membership
within Canada is intact.
Internals
free
although the Do¬
the Al¬
Therefore,
taken
a
somewhat belated
nevertheless the bond¬
holders
in
general can
now
stand,
render
dian
signal service to Cana¬
financial
prestige,
and
make
contribution
development of
notable
a
full
a
natural
re¬
the ir
behind
great
throwing
wholehearted
support
by
sources
in his insistence on a
full restoration of the credit of
Alberta.
ture
j
of
throw
not
the
may
be
With
future
the over¬
the Progressive Con¬
Government
of
On¬
the
of
servative
week
was
and
about
brought
by
suing provincial election it is to
be hoped that the Conservative
leader, Colonel Drew, will aban¬
don his narrow course of unrea¬
from
I.
will
Preston
in
partnership
Whitmer,
&
Watts
retire
Mitchel,
Co.
of
as
March 31.
Charles
Moore &
R.
Butler, partner of
Schley, died on March 18.
Interest
the
of
late
Herbert
L
Mills, Exchange member, in Dick
Merle
Feb.
Smith,
-
ceased
of
as
26.
new
basis
figures
war
this
return
to
depend
sia's ability to export.
trade will
commitments.
consist of
on
Aireon iftfg.
and
of
this
loans.
additional
In
the
a
as
young
dynamic country
Canada, the fostering of
pioneer
spirit
essential,
is
attain
the
high
destiny
affairs will be 10
If
now.
tween
Far
Preferred Shares
The
offering of
150,000 shares
of 60 cent cumulative
Reynolds
&
Co.,
oversubscribed
to the
was
and
quickly
the
pany.
clashes
at
international
a
later
much less than
date
now
loans
to
may
be
expected."
Merrill, Merrill,
Listing Committee—Rus¬
I.
Chairman,
Cunningham,
Witt, John P. Witt & Co.; E. E.
Parsons, Jr., Wm. J. Mericka &
Other
members
of the
under¬
Henry
F.
writing
group
Co.; Herrick, Waddell &
were
provincialism,
and
Beadling &
J. Schultz,
L.
L. J. Schultz & Co.
Rules and
tee—R.
Arbitration Commit¬
A.
Chairman,
Gottron,
Gillis, Russell & Co.; A. R. McClintock; Daniel Baugh, III, Gor¬
don Macklin & Co.; R. W. Sny¬
der, John P. Witt & Co.
Committee — S.
Chairman, Curtiss,
House & Co.; Gordon S. Macklin,
Membership
Ely,
Macklin & Co.; Theodore
Gordon
Thoburn, Hayden, Miller & Co.
Co., Inc., and H. O. Peet & Coi
Relations
Public
Committee—
Morton A. Cayne, Chairman,
Cayne
&
Co.;
L.
Taylor, Deale
&
Company
-
J 874
Handyside,
Finley, Finley & Co.
Arrangements Committee—Paul
Gaither, Chairman, Gillis, Russell
&
Co.; Norman V. Cole, Ledogar-
Horner
W.
Co.;
J. Carey,
Gunn, i
Carey & Co.
Finance
canadian securities
Government
♦
Provincial
•
Municipal. ♦ Corporate
'
Maynard H. March & Co.; E. E. '
64 WALL STREET, NEW YORK 5
WHitehall 3
M, A.
Bir chard,
O.
Prescott & Co.; D. P.
of
be-
McDonald
McDonald,
B.
Prescott
20 years from
are
books
general funds of the com¬
conflicting interests in the
East,
Russia
there
or
Miller & Co.;
Fleek, Hayden,
& Co.; A. J. Stiver,
Saunders, Stiver & Co.: John P.
private banker will be sure
state
S.
Cunningham
Swift &
depends almost entirely on
long-term political stabilization.
war
Burge, Bell. Burge & Kraus; John
Stock
bu¬
blinded
„
Maynard H. Murch & Co.; John D.
sell
by
those#
trade
^js
Fulton,
closed, the bankers reported. The
stock
was
priced
at $11,375 a
share. The proceeds will be added
such
the
Scmmittee
Chairman,
Advisory
Yost
of unfettered
individual enterprise.
to
Turben & Co.
0®.
Additional
long-term
volume
Executive
—W.
Youngstown;
in the post-war era,
its
appoint¬
President
the
W. E. Beadling,
he can profit
At
Committees:
Charles
and
Rus¬
Russian im¬
the following
by
Standing
of
of
—
19, the Board of Governors
confirmed
ments
Co.,
reaucracy,
ports of capital goods financed by
medium
taking
pre¬
will
similar
the
OHIO
CLEVELAND,
regular monthly meeting held on
Co.;
that
will return to
only gradually,
level
high
in
Standing Committees
convertible
which
pre-war,
the possible
of the market, it
generally
Cleveland Sleek Exch.
March
to
N.Y.
WHitehall 4-8980
preferred stock of Aireon Manu¬
facturing Corp., made March 23,
by a banking group headed by
Regular
of
r
course
61 Broadway# New York 6,
past mistakes by looking be¬
yond his provincial borders and
following the example of Prime
Minister Churchill in sounding a
national call for the restoration,
not
commercial
CHARLES KING & CO.
Member* Toronto Stock Exchange
& Co.; Charles B.
without which the country can
trade,
Bought-—Sold-—Quoted
with
interna¬
experience qf
exercised
be
by
trade outlook into two
categories.
conducted on a
men
prices and the imminence of the
Eighth Victory Loan and the
General Election, caution should
Following the en¬
of the C. C. F.
business
regard
the
of
a
is restored to power,
Alfred
STOCKS
around
should be repeated that in view
tario, instigated by the irrepressi¬
ble Liberal leader Mitchell Hep¬
burn,
inactive
tional finance:
tions, and which led eventually to
his defeat.
If, as is expected, he
&
CANADIAN
that the
and
adequate
*
>
•
were
were
hoped
bankers
Co.,
Suetendael
Van
O.
NY-1-1045
discount, totally unaffected
be
political front the fea¬
the
also
increasing
opposition to the International
Monetary Fund will not prevent
ultimate agreement on a universal
currency
stabilization
scheme.
However, the general opinion is
shared that any international cur¬
rency plan agreed upon should be
put into operation by practical
to
Yonkers, New York, will retire as
an
Exchange member firm as of
A.
5, N. Y;
RECTOR 2-7231
by the currency battle of Bretton
Woods.
In this connection, it is
Committee
Bondholders'
berta
have
funds
9%%
minion Government and
soning opposition to Federal poli¬
cies, which forced him on so many
occasions into contradictory posi¬
of Arthur E. La Branch.
NEW YORK
and
all governments
coalition of Liberals and members
Privilege of Henry J. Lemmermeyer
to
act
as
alternate for
Charles F. IJavemeyer of Homans
of$aRer
they divide the
Exchange
the
by
Co., Pittsburgh.
op-
possibility
safe for them to take an uncritical
considered
April 5. Mr. Parker will continue
as a
partner of Kay, Richards &
TWO WALL STREET
fur¬
credit standing of
still appears to be scope for
ther eventual improvement.
On
bership of the late Ralph S. Rich¬
ards 4o Nathan K> Parker will be
-u-tx
the
about
with
right to be
-
a
...
,
timistic
Exchange
Transfer of the Exchange mem¬
The
Zelomek
Mr.
INCORPORATED
in which issues there
Montreals,
attaining that proud position
where it could be said that the
Mr. Ilsley
changes:
&
"Beyond this early period Rus¬
sia will need practically unlimited
question
The New York Stock
orders will be
immediately, and
placed
Weekly Firm Changes
es¬
with loans wherever
these imports
A. E. AMES & CO.
and
Albertas
to
ion
Alberta's
New York Stock Exchange
the Domin¬
stands in the way of
confined
was
March 29.
should be expected.
on
so
"These
BRUCE WILLIAMS
By
proposal by Finance Minister Ilsley to Alberta's Premier
Manning that the Dominion Government is willing to cooperate with
the province in the rehabilitation of Alberta's credit, provided that
the province fully recognizes interest arrears and also the contractual
coupon rates, completely changes this situation, especially when it
appears that Premier Manning has taken on himself the responsibility
of spurning the Federal Govern-'V
the narrow concepts of sterile
ment's offer of assistance and has
socialism# can not see.
taken a narrow political course in
The
towards
Russia
of
things.
two
Illinois Co.
has announced the following .firm
change' just doesn't make sense.
the
Corp.;
flow
to
"The
Maynard
H. Murch & Co.; A. G. Becker &
Co., Inc.; A. C. Allyn & Co., Inc.;
Central Republic Co., Inc.; Harris,
Hall & Co., Inc.; H. M. Byllesby
& Co., Inc.; Kebbon, McCormick
&
Co.; Bacon, Whipple & Co.;
William Blair
& Co.,
and The
Cleveland
First
Factor in World Trade
CANADIAN STOCKS
&
Co.;
Mellon
Securities
Corp.;
Smith, Barney & Co.; Drexel &
Co.; Hornblower & Weeks; Kid¬
der, Peabody & Co.; F. S. Moseley
& Co.; Paine, Webber, Jackson & satisfying those fanatics of weird
Turning to the market for the
doctrines within the past week, the factors previously
Curtis;
Stone
& Webster and monetary
mentioned commenced to exercise
Blodget,
Inc.; Union Securities Social Credit party.
influence,
and
although
Corp.; Estabrook & Co.; Whiting,
Thus it appears that in the in¬ their
Weeks & Stubbs; Moore, Leonard terests of
were
well
maintained,
party politics Mr. Man¬ prices
& Lynch; Singer, Deane & Scribthere was a decided diminution
ning is willing to jeopardize in¬
ner; A. E. Masten & Co.; Glover definitely
not
only the credit of activity throughout the list.
& MacGregor, Inc.; Graham, Par¬
standing and future prosperity of High-grades were neglected, and
sons
& Co.; Stroud & Co., Inc.; his
own
province but he also whatever interest was displayed
Sachs
j
group
Boston
First
New York 5
Canadian Securities
members
Other
writing
Y ' :-
September 1, 1951
Due
14 Wall Street,
retire, at
to
standing.
Railway Co.
CORPORATION
Incorporated
102^2% and ac¬
crued
interest,
$30,000,000 first
mortgage
sinking
fund
Vk%
bonds, series B, presently out¬
Guaranteeing
Non Callable
GOVERNMENT
Wood, Gundy & Co.
with pro¬
and other
required corporate funds, will be
Canadian National
'
MORE!
MUNICIPAL
bonds, together
of a bank loan
ceeds
used
■
GIVE
PROVINCIAL
of
proceeds from the sale
these
Canada
■
+
interest.
accrued
Net
1
NOW!
GIVE
sinking fund 3*4%
bonds, series C, of Wheeling Steel
Corp. The bonds mature March 1,
1970, and are priced at 103% and
first mortgage
of
;
Thursday, March 29, 1945
& FINANCIAL CHRONICLE
THE COMMERCIAL
1386
Baugh,
Macklin
III.
&
Committee
—
Chairman,
Co.;
R.
A.
Daniel
Gordon
Gottron,
Gillis, Russell & Co.; D. A. Hawley, Hawley, Shepard & Co.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4372
161
H.
Marion
Ohio Valley
IBA Group
Association
Bankers
The Weil, Roth
Banker, Chairman,
Devine & Co., Cincinnati,
J.
following
The
Hannan,
■
S.
municipal,
Trost, Stein Bros. &
cinnati,
,
J.
James W. Chandler, Stein Bros.
Reed, Hill & Co., CinOhio.
Van
D.
J.
Hooser,
Hooser & Co.,
& Boyce, Louisville, Ky.
the
Robert
Bankers
Lexington, Ky.
M. Battin,
Co., Columbus, Ohio.
Edward
& Co.,
,
■»
Louisville, Ky.
The
corporate
J.
business
doing
name
of
in
bonds,
and
ATLANTA, GA.—Courts & Co.,
Marietta Street, N. W., mem¬
bers of the New York Stock Ex¬
11
Avenue.
J.
John
De¬
change and other Exchanges, an¬
nounce
that
Russell F. Neilson
Offices are at
Company.
East
42
In the past Mr.
Ohio
lett
headquarters
at
Georgia office.
DeGolyer.
&
organization, with
has joined their
DeGolyer was a partner of How-
'
Joe Hillman, W, L. Lyons
firm
Golyer
Van
D.
Co.
Y.—John
N.
the counter securities, under
over
Boyce, Louisville, Ky.
Bond Co., Louisville, Ky.
is
DeGolyer
\
Milton
& Irving Co., Cin¬
•
Wood
ROCHESTER,
"
cinnati, Ohio.
America
of
the
that
announces
C.
John J. DeGolyer
H.
Howard
Chairman,
Niehoff,
R.
Harry
the Investment
of
Membership Committee
B.
OhiO.
CINCINNATI, OHIO—The Ohio
Group
J.
Kentucky Municipal Committee
Officers & Committees
Valley
J.
Cardwell,
Hilliard & Son, Louisville, Ky.
the
LaGrange,
.
THE 45th ANNUAL REPORT OF
FOR THE
1944
YEAR
Thomas Graham
have been elected officers for the
coming year:
Thomas Graham, Chairman, The
Bankers Bond Co., Louisville, Ky.
Ewing T. Boles, Vice-Chairman,
The Ohio Co., Columbus, Ohio.
A.
Chester
2.
& Boyce,
Bros.
committees have
the group.
4.
6,
7, Importance
of
cellulose
products in War and Peace,
been appointed by
Executtive
Robert
B.
Re-employment plans for
veterans,
3. Record sales volume.
Committee
The following
5, Diversification of markets,
production for ictory.
V
Integration of operations and
products.
Secretary-
Lucas,
Treasurer, Stein
Louisville, Ky.
I, All-out
Diversification of products.
&
Blyth
McDowell,
CQ^Louisville, Ky.
C.
Starting with the
Diehl, Provident Savings
Trust
Co., Cincinnati,
T.
trees on
owned
or
leased timberlands, with
nature
and essential in character, include
Pulp, Paper, Multi-
&
Bank
wall
operations and products integrated, St. Regis Paper Company
Ohio.
Anthony J. Armbrust, Merrill
Lynch, Pierce, Fenner & Beane,
Cincinnati, Ohio.
J. Austin White, J. A. White &
and its subsidiaries manufacture and sell
wood cellulose
wide range of
a
Paper Bags, Bag-making and Bag-filling machinery,
Plastics and
Rayon... currently, the entire production is (of
direct or indirect war use and for essential civilian
products. These commodities, industrial in
requirements.
Co., Cincinnati, Ohio.
Senator Stanley
ernor
G. McKie, Gov¬
ex-officio, The Weil, Roth &
Irving Co., Cincinnati, Ohio.
Legislative Committee
man,
SYSTEMS
help*
Uing deliver the goods on
Bags
Ky.
Ewing T. Boles, The Ohio Co.,
the
front
war
are
and
PlSli These pApers
provide
the
v>
Columbus, Ohio.
C.
Diehl, Provident Savings
&
Trust
Co.,
Cincinnati,
Ohio.
'
several thicknesses of
sacks resist moisture, exposure
&
Roth
Ohio.
Educational Committee
Chairman,
Field,
E.
Reamv
Field, Richards & Co.,
Cincinnati,
Uses include V-mail
Bag Machines... Bag-making machinery and a
wide range of bag-packing machines are produced
by the St. Regis Engineering and Machine Divi¬
sion. They are extensively used in the United
States and many foreign countries to save time
The Weil,
Cincinnati,
R. Niehoff,
Irving Co.,
research
and manpower
Ohio.
Johnston, W. E.
Cincinnati, Ohio.
Berwyn T. Moore, B. T> Moore
Co., Louisville, Ky.
J. A. White, J. A. White & Co.,
Campbell
'
.
S.
Hutton & Co.,
&
'
''
1
^
& Co.,
Cincinnati, Ohio.
Meetings and Entertainment
Committee
Robert B. McDowell, Chairman?
Blyth & Co., Louisville,
Mrs.
Ora
Ferguson,
Ky.
Merrill
Pierce, Fenner & Beane,
Louisville. Ky.
O.
W.
Hirschfeld,
Stranahan,
Lynch,
Cincinnati, Ohio.
E. Hutton
& Co., Cincinnati, Ohio.
W. L. Lyons Jr., W. L. Lyons &
Co.. Louisville, Ky.
Henry J. Hoermann, Provident
Savings Bank & Trust Co., Cin¬
Harris & Co.,
Douglas
W.
Hill,
Hill
&
Co.,
Cincinnati, Ohio.
'
•
'
** *
'
•
J.
G.
Walter,
Heimerdjnger,
Woody
Chairman,
& Heimerdinger,
Cincinnati. Ohio.
Chester A. Lucas, Stein Bros.
&
Boyce, Louisville, Ky.
J.
E.
Sohn,
Lincoln
Bank, Cincinnati, Ohio.
National
.
,
»
•
*
•
*
6,003,799.10
.
.
.
.
«
419,1?0.02
413,969.22'
.
before Provision
for Income and Excess Profits
Current
Taxes.
uses.
..
.
.
.
.
5,584,649.08
.
.
Profits Taxes;
cess
PANELYTE
*
p
.
. .
rayon
by.
,
Federal:
Income taxes
Excess
$1,250,000.00'
profits tax (less post*,
.
refund of $116,000.00
and debt-retirement credit of
1/~
^0*
—
Laminated Plastic is re-
$120,000.00) $2,125,000.00
ducing weight, saving
(less Canadian post-war refund
of $16,216.22) ,
169,614.58
trical and structural parts
*<•
Total,
(moldedand fabricated)
rmM. the viscose process at
the Armed Services,
the
/
Skenandoa plant. Ske^Bjf nandoa's production is
SSSfii used for medical and
hospitac$upplies and clothing for our armed
forces
ari^civilian populations of allied nations
and occupied countries and for essential civilian
the
*
.
of
industries.
Minority Interests.
Panelyte resists corrosion and
high temperatures . .'. not affected by water,
Deduct
,
,
»
brine, oil
Net Income,
•
•,
paper,
or
ordinary solvents
fibre glass, fabric, wood,
.
.
or
.
.
.
.
.
$ 3,544,614.58
>
*
«
,
*
#.
2,040,034,50
«.
Minority Intelests in
Income
supplied in
.
.
Net Income before Deduction
avjation, automotive, electronics, and refrig¬
erator
-
Canadian and other foreign taxes
time and money on elec-
is manufactured
.
Charges
Income
5,589,829.88.
.
*
;
*atest Edition to St,
m igj Regis family
•
'«
,
'
186,520.69
$ 1,853,513.81
asbestos bases.
clothingr'
St
With
improved and stronger yarns in the post¬
period, Skenandoa will be foremost in the
production of rayon for use in clothing, house¬
hold furnishings, transportation and communica¬
war
tion fields.
Regis Paper Company is in
during the
a
favorable position to expand its business in all divisions
following conclusion of the war. Factors which support this belief are (a) the
modernization program,
company
,
years
and its subsidiaries, and (d) the great diversity of markets and industries served.
.'j 11
DIRECTORS
J. O. Bulkley
and
on
lend-lease
requirements. They also serve 30 major war-supporting industries.'
H. R. Iamb
T. H. cosford
H. S. Lewis
W. Delong
H. E. Machold
W. K. Dick'
C. R. Mahaney
J. Dixon
R. B. Maltby
R. K. Ferguson
REGIS
PAPER
TAGGART CORPORATION
J. A. Quinlan
•
COMPANY
SKENANDOA RAYON CORP.)
C. B. Martin
M. F. Ford
ST.
W. H. Versfelt
New York 17» 230 Park Avenue
Chicago!: 230N.MichiganAve.
St.
!
(b) research and new developments, (c) widened acceptance of the !
Currently, St. Regis products move directly or indirectly to our Armed Forces
W.
Municipal Securities Committee
s
Income
James M. Hutton, W.
cinnati, Ohio.
,
*
war
,
.
Hutton &
,
#
Provision for Income and Ex*,
RAYON.
^
Cincinnati, Ohio.
Co., Cincinnati, Ohio.
Howard H. Banker, C. J. Devine
papers.
,
Net
Structural
i..
:
^
points to wider post-war
42,798,447.26
.
•
Gross Income..
ease
pulpwood shortage.
and domestfc
magazines, catalog and directory
Expenses
Income Credits.
paper, overseas
for industry.
;
Maxwell Fuller, W. E.
'"the
and rough han¬
dling ... are preferred for chemicals, food stuffs,
building materials and fertilizers.
-
Operating Income /
require less Wood,
thereby helping to
Co., Louisville, Ky.
Harry
which
1944
Sales, Royalties, and Rentals $48,388,277.14
Costs and
PaPefS
?
"
Reimer, B. T. Moore &
J. Berges
Net
wclein, opaque sheets
T.
Bank
SUMMARY OF CONSOLIDATED INCOME
PRINTING
;
for the Year Ended December 31,
Louisville,
Bros.,
Almstedt
LIGHTWEIGHT
mmetrnm packaging
James R. Burkholder Jr., Chair¬
Baltimore 2: 26010'SullivanBldg.
,
SanFrancitco4: I Montgomery St.
Regis Paper Co. (Canada) Ltd., 924 Canada Cement Bldg., Montreal
'
J.
f
-
distribute the surplus
manner:
Money
And How Much?
Who Gets the
which
of
create
far
So
ment.
as
only portion of
earnings we need to
portion paid out
in
wages,
salaries,
dividends,
bonuses and interest—all of which
corporation
the
is
consider
be reckoned in
can
income
individual
Total
figures. The whole story of
economic justice or injustice is
found'in
personal in¬
the
in
personal income figures,
NET
Net Income
$5,000 to
Returns
(Round figures)
7,000
3,213,948
191,873
$7,766,939,000
7,000 to
119,235
770,461,000
17,206,000
76,203
52,207
568,659,000
15,817,000
442,394,000
15,096,000
8,000
8,000 to
9.000-.:
—:
9,000 to 10,000—
10,000 to 15,000
—
a
370,719,000
687,928,000
20,000 to 25,000.
20,796
463,513,000
25,000:to 30,000.
11,820
>■: 322,650,000
439,454.000
6,343
282,304,000
cents
1,176,296,000
Totals
—
„
425,404,000
3,895,418
(round
.
fig¬
ures.
As they cover all personal
incomes in America above exemp¬
tions they must include monopoly
profits, tariff profits, and all other
kinds of profits, so far as these
profits go into the hands of in¬
These are very interesting
figures;
of
Number
personal
Incomes
$25,000
over
42,622
——
Millions
Total
of
incomes
personal
$25,000
Income
taxes
Wh^re in this schedule of in¬
would one look for the
monppolists, the tariff benefici¬
aries, the interlocking directors,
the rich bankers and profiteers in
this
group
■—
•
567
less
$1,653
—_
Deduct 42,622 incomes at $20,000--
most of
the^
chances
The
genera^?
lion, not
them would be found in
and
over
income
No sensible person would
say that everybody with an in¬
come of $25,000 or more has ob¬
tained it unjustly by exploiting
$25,000
The
ule.
How
much
the
would
no
ex¬
billion
comes
would
increase
the
in¬
of this
non-taxpaying group
$100 of income. The man
with
low-
income
an
receive
an
$2.00
per
bar
by the distribution of that surplus?
$1,600
would
extra of $23.20 a year—
day!
a
Or
"*Statistics for Income for 1939"
back
tSingle $1,000, married $2,500.
of
month—one
suppose
to
5
all other groups, the
on
possible gains to low-income re¬
ceivers from such a distribution
would be much less than these
figures.)
pre-war
We
the
now
have
effect
a
clear picture of
incomes
personal
on
produced by all forms of so-called
"economic
injustice."
Whatever
financial advantages there are in
so-called
"monopolies," in pat¬
ents,, in tariffs, in the whole pri¬
vate
enterprise system, are not
concentrated in the hands of a
few
but
diffused and distrib¬
are
uted throughout the whole popu¬
lation in wages, taxes and prices
of goods.
Incidentally, an analysis of in¬
figures in Canada, and in
come
Great
tern
Britain, shows that the pat¬
of
their
income
distribution
is practically the same
as
that of
the U. S. A.
chocolate
Here
is
present
finance
clear
proof
that
our
system of business and
automatically distributes
the total
production of goods and
services, measured in dollars and
that is within
5%
of
complete
equity
(not
equality, which nobody wants).
cents, in
If
a manner
is willing to admit that
one
half
the
we
$10,000,
rich
not
push the limit
after taxes, and
group more than 2
the dollar of their earn¬
on
The people are not being
robbed
by monopolies, by tariffs, by in¬
terlocking
directorates,
by
the
money system, or any other de¬
vice; the common statement that
business, banks and government
are
all operated "for the benefit
of a few, and to the disadvantage
of the many" is completely dis¬
proved.
This
is concerned
analysis
en¬
tirely with incomes and not with
wealth.
accumulated
for
call
Some
re¬
redistribution
a
wealth, which is generally con¬
as being money in a bank.
of
in the banks are
balances
Credit
wealth
small portion of the
a
Most of it con¬
sists of buildings, railroads, ma¬
chinery, tools, materials—physical
of
the
country.
things which could not be divided
among the whole population.
The only
wealth could be
be by giving
way
would
distributed
individual
each
for
cate
share
a
certifi¬
stock
a
national
the
in
But this certificate would
wealth.
worth
be
nothing
it
if
did
not
dividends, which come from
profits.
It makes little difference
pay
the
holds
who
their
incolnes
is, who gets the income
from the certificates, and how
much? Nothing5 could be accom¬
plished by distributing "wealth"
that is not now accomplished by
distributing the income produced
by this wealth.
That is what
makes the
schedule of income
so
shows where the
and enables us to
exactly
whatever
in¬
important—it
income
measure
is in its distribu¬
equality there
tion.
the
of
are the result of
intelligence, skill,
all,
not
come,
inequalities in in¬
differences
in
disposition, and experience. Prog¬
individual
the
for
ress
goes
on
standard
as
a
the
While
average
of living for the
whole
nation
tunity to
and
are
every
is
ties
is
year.
these
that
not
are
sound
no
improve their position,
doing it by the millions
The important point
individual inequali¬
of
the result
an
posing that a change from private
ownership to government owner¬
ship of everything would improve
our living standards.
honestly,
In these
figures
to the
have
we
we
also find the
statement
common
the problem
solved
of
announcement
buy
as,
appears
as
a
matter of record only and is under
an offering of these securities for sale
any
of such securities.
The
or
as
a
no
circumstances
solicitation of
an
to "be
offer to
offering is made only by the Prospectus.
NEW ISSUE
150,000 Shares
Aireon
Manufacturing Corporation
60^ Cumulative Convertible Preferred Stock
(Par! Value $10.00
per
Share)
production, but have not solved
problem of distribution. The
statement
is
wrong
on
both
counts. The people have not pro¬
duced enough goods and services
to give themselves the standard
of living they want, but they have
solved the problem of distributing
equitably more than 95% of all
that is produced.
It is
good to know that the
called
"injustice"
order is
social
many
move,
of
we
0
issue
as
may
legally offer these securities under the securities laivs of such State.
life
instances of handicaps
the
to
which
served
we
us
no
re¬
we
are
accus¬
call private
en¬
among
raise
to
we
the
of
which
or
does
not
rest
upon
em¬
ployers alone but requires the in¬
telligent co-operation of the whole
people; by increased production
per capita through training, bet¬
ter
machinery, and better meth¬
ods; by pulling together in a spirit
of goodwill and fair play.
Tax
reform is highly
important, but
that is another story, which must
wait for peace days.
It is quite clearly useless to ex¬
pect an improvement in our af¬
fairs to
the
bare
as
about through "soak
legislation—that idea is
come
rich"
Mother Hubbard's cup¬
can
have more and
as
board.
We
better of
ing
everything—by produc¬
wage-and-price sys¬
it—the
tem will continue to distribute the
purchasing
power
to
buy the
goods with a very close approx¬
imation to complete equity.
A
number
are
now
of
tenable and
popular
to be
seen
theories
entirely
un¬
ambitious pro¬
some
jects impossible:
(1) Taxation experts no longer
basis for using taxation
have any
as
"social
a
instrument"
redistribution
they
are
of
for
wealth
going
—
the
what
redistribute?
to
And how much?
(2)
Social workers
face
to
face
for
money
with
brought
are
the
social
fact
services
mainly from the
that
must
low
same
income group
they are trying to
because 90% of all per¬
benefit,
sonal income in
the
hands
of
before
comes
of
taxes
less—the
or
the
rich
whose
in¬
$5,000
are
well-to-do
are
of funds for
sources
social
a
earnings
excess
and
as
over-all
an
the U. S. A. is in
people
security
pro¬
gram.
(3) The "soak-the-rich" dema¬
in
gogue,
high
places
and
low,
loses his stock in trade.
(4) The economic basis of Marx¬
ian
Socialism
mirage.
turns
out
to
be
a
•
The key to progress is not found
in
the redistribution
in
nor
the
of
money—
of
increase
money—
but in making a
day's wages buy
through the elimination of
more
waste,
especially
straight
and
no
the
line
that
in
too high.
teria of
of
a
between
non-producers,
doubt
centages
waste
It is difficult to draw
manpower.
producers
but there is
"overhead"
national
our
We need
some
per¬
life
are
new
cri¬
Utility.
.
system.
well.
extremely
It
provides
and
oppor¬
of
the
argument
for
character
people who use it.
This
is
not
standpatism.
Sprague Electric
Stock Offered by
F. S, Moseley
Public offering of130,000 shares
of
common
stock, at a price of
$15.50 per share was made March
22, by
a banking group headed by
Moseley & Co.. and including
F. S.
Paine. Webber. Jackson & Curtis;
Paul H. Davis & Co.; Kidder, Pea-
body & Co.; R. W. Pressprich &
Co.; Reynolds & Co. and Mac-
kubin, Legg &
Of the
Co.
shares
currently offered
50,000 represent new financing by
the
company frand
80,000 shares
are
for
the
account
shareholders.
of
present
*
essential injustice in
tunity for individual progress on
reasonably fair terms, and pro¬
duces results according to the in¬
telligence
March 23, 1945
diligent to
terprise. with all its hard work,
and
difficulties,
and
accidents,
and
unforeseeable
emergencies,
has
Reynolds & Co.
puny
it still remains that the way
There is
.
so-
present
our
of such
must be
tomed, which
Copies of the Prospectus may be obtained in any State from only such dealers participating ih this
of
di¬
mensions.
Granting that this is
an imperfect world and that there
which
Share
divided
is
impor¬
the
are
Price $11,375 per
have
any
necessary,
useful,
exchangeable goods
and services, the responsibility for
saleable
un¬
unju§t system, and there
ground anywhere for sup¬
or
well-to-do
are
production
forward slowly,
moves
an¬
group
living? By steady em¬
ployment of all who are able and
willing to work, not in make-.
work jobs,
but in the efficient
negligible
services.
small
standard of
quality of his production of goods
or
it
then
year
as
for
us
giving to
this
and
when
How
he increases his intel¬
ligence, his skill, the nuantity and
steadily
that
construed
group and
enough to be of
come
Most
of
the many.
goes,
answer
This
the
certificates—what
matters
people who have incomes of
$5,000
or
over
have
probably .Distribution Is Not Our Problem
earned
one
tance
ings.
individuals have abundant oppor¬
Where Is the Exploitation?
$1.45 per
benefited
taxation
income tax.
Dividing the excess of $801 mil¬
proportionately among this
group whose incomes totalled $55
in the sched¬
income group have been
of the per¬
the low-income
of
lion
emptions in f 1938, and who there¬
fore do not appear
total
who paid
group
ule, but to the low-income group
below
the
as
incomes
sonal
shown in the sched¬
were
want
we
accepted
generally
billion
and distributed—not
Whose earnings
tax
below
were
group
the
figure
for the total of all personal in¬
comes
in that year was roughly
$70 billion. The total incomes of
all persons who paid income taxes
was
$15 billion. This leaves $55
Nevertheless, sup¬
$20,000, after taxes, be
to any group
Million?
the other groups
among
exemptions—the
to help.
exploitation.
Suppose
we
had
pasged a law that all.excess in¬
over
$801
because their incomes
\ye say, for sake of the argu¬
ment, that all incomes over $25,000
are
the result of profiteering or
come
With
schedule, but among
who paid no income
people
pose
taken away
the
in
groups.
his fellowmen.
Do
Now let us divide this $801 mil¬
that
are
$801
Surplus
to
be
and
unemployment
(For any war
852
comes
What
would,
group
the dollar of their annual
on
starvation.
year,
owing to
higher earnings of the low-income
group, and the greatly increased
$2,220
paid by this group—
incomes of
earnings to the same
in
,
__
taxes
Total
dividuals.
over
or
adjust our national affairs to the
$5,000 limit, the whole economy
would crash in a wild bedlam of
$890,934,000
$15,550,992,000
say
earnings—$75 on $1,500. That is
what they would receive THEO¬
RETICALLY, but not actually,
because long before we could re¬
46,520,000
11,668
Over 50,000.
of
cents
but
tariff,
low-income
59,441,000
:
to
all
increase
35,604,000
12,791
because
profiteering of some
kind, but if we went that far the
41,709,000
30,000 to 40,000.
other,
ceived
or
48,811,000
so-
ahead
larger and finer living, but they
are
not to be gained by taking
from
personal incomes over
$5,000 are the result of monopoly,
63,007,000
40,011
ridiculous
be
of
opportunities
called "exploitation" put together
do not affect the earnings of the
formers
would
It
14,668,000
1,211,865,000
15,000 to 20,000.
40,000 to 50.000.
$3.30
group
week!
that
18,683,000
1,047,810,000
39,122
100,401
—
•-
this
of
$100 of income. The man who
an
income of $1,600 would
have received an extra of $1.01
$88,968,000
—
would
it
incomes
the
low-income
have increased
the same
among
group,
Tax Paid
6.000———
6,000 to
ed
Total
Up to $5,000——————————
$1,826
this
per
had
Number of
Classes—
;
2,038
surplus of $1,826 mil¬
lion had been collected and divid¬
INDIVIDUALS
INCOME-
Net Income
incomes at $10,000
—
If
class:
included
are
$3,364
Surplus
returns,
tax
720
of this group less
each
classes
come
$4,584
—
203,830
fellowhesita¬
low-income
over
.
paid by this group—
incomes
Deduct
income,
net
incomes
personal
•
taxes
by net income
(omitting the non-taxable
returns), the aggregate income and
total tax
paid by each income
with
of
$10,000
Income taxes
published
by the Bureau of Internal Reve¬
nue
for the last pre-war fiscal
year *1939 showing the number of
social justice is
the
concerned,
it
as
personal incomes over
income taxes
203,830
Millions
Total
without injustice to their
men, he can say without
tion that all these items
before
$10,000
terms of money,
Here are the figures
employ¬
more
far
so
materials and equipment, all
more
in the same
v
of
Number
(Continued from first page)
Thursday, March 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
1388
an
There
;
are
Proceeds of
the shares
sold
by
the company will be used, in part,
to
provide
ment
of
standing
funds
all
the
preferred
caoitalization
000,000
for
of
will
3%%
the
retire¬
presently putstbek so that
consist
of
$L-
debentures
due
Oct. 1, 1954, and 446,525 outstand¬
excellent ing shares of
common
stock.
Volume
1389
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4372
161
make
Cartels
Imperil Economic Progress
(Continued from page 1382)
any more
vive
"half
Once
we
than a nation can sur¬
free and half slave."
start to regiment
through
allocations, price fixing and pro¬
duction controls our activities in
field, we, of necessity,
upon us by the
the foreign
will have forced
Government, restrictive measures
wholly
falling
operations
upon
private enterprise versue
collectivization, and liberty versus
them.
The danger in re¬
sorting to cartels during emergen¬
that
is
cies
survives
cartel
the
real
the
has
emergency
passed.
Aside from all of that, however,
is
significant this argument is
put forth at this time by the car¬
tel advocates.
This country does
it
face
a
post-war depression.
approach to post-war prob¬
lems is illustrative of the defeat¬
not
within the domestic field.
This
Arguments for Cartels
False
Turning to the arguments ad¬
vanced in behalf of the negotia¬
tions of these super-state cartels
we find the contention that cartels
marking the economic
ist attitude
thinking in Washington during the
last 12 years.
Too much Wash¬
ington planning is
being done
safe¬
under
guard industry and invested cap¬
ital against unfair
and destrucitve competition and the wastes
which result from wide fluctua¬
shadows
of
the
past.
These
are
necessary
a
in
tions
device
to
activity—that
industrial
the
planners should approach
problem in a venturesome
the
spirit determined to seize upon
the
great opportunity presented
for a dynamic expanding econ¬
the only hope for the restor¬
of full employment in this
they serve to permit the orderly
development
of industries
and
omy,
stabilize prices.
country.
the
the
argument begs
all of that
Now
for
the
of Nation's definition that:
question of what is best
general welfare. Like
League
"Cartels
associations of inde¬
are
pendent undertakings in the same
or
similar branches of industry
established with a view to im¬
proving conditions of production
and sales",
it fails to state to
whom
the
benefit or improve¬
ment accrues.
^
ation
The answer is ob¬
Cartels and Peace
Some argue
that American par-
icipation in super-state cartels is
necessary to assure lasting peace.
I remind them it was cartels, sub¬
sidies, unduly high tariffs, barter¬
ing and governments trading with
other
governments, which gener¬
ated
of
much
so
friction
the
economic
preceding this war.
The
origin in Ger¬
cartel idea had its
for
When Adolf Hitler seized
he found in the cartel sys¬
a completely' forged
weapon
his program of rearmament
and
war.
vious, since the primary purpose
of cartels is to restrict competi¬
many.
bet¬
ter products at lower prices, bene¬
fits
the consuming
public.
So
whatever restricts competition in
the long run harms the public
tem
Competition, bringing
tion.
Price stabilization usu¬
welfare.
ally means the
establishment of a
rigidity designed to protect high
cost and marginal producers.
It
incentives for low cost
policies.
Thus, cartels operate
against the smaller or relatively
newer enterprises which, through
destroys
increased efficiency, are
challeng¬
the position of larger and
older enterprises when the latter
ing
have become
water-logged
will o' the wisps
Assume that
world
which
contract
to
world trade.
At
best, they might serve to trans¬
fer markets from one nation to
another
without
increasing
the
total of world trade. But if the
ills of the world are to be healed
through international trade, then
the volume of international trade
wedded
we
through the pro¬
duction of better goods for sale at
lower prices.
be done only
defense of car¬
We
for instance, Milo Perkins,
Executive Director of the
Economic
Warfare Board,
con¬
find,
former
healthy foreign trade is
quarters
assertion that: "Where
cannot eliminate cartels, we
we
,
employment, and
of living.
A
Suggested Proviso For Bretton
Woods
Pending before the Senate are
the
Bretton
Monetary
Woods
Agreemtns. One of thesse provides
for the establishment of the In¬
ternational
tion and
Bank for Reconstruc¬
Development with a cap¬
billion eight hundred
million dollars, of which this Givernment would
be obligated to
ital of eight
that
and
three
perfect ways to
into
instruments
the public interest."
gradually
them
make
which
serve
But at the
beginning of the article,
emphasized
by
type,
italic
Mr.
cartels are
in business to keep prices at levels
which could not be held if free
Perkins
"All
states:
competition existed."
In other
words, Mr. Perkins in one breatth
asserts
cartels
are
devices for
rooking
public,
the
next breath that
and in the
such devices can
be made to serve
the public in¬
terest;
asserts that al¬
though in normal times cartels
may be undesirable; they are ne¬
cessary devices for short terms in
periods of depression to prevent
the too precipitious drop in price
levels, which have disastrous con¬
Another group
I
sequences.
suppose
and there a showing
be
made
sion.
to
that here
of facts could
sustain that conclu¬
But it also
could be demon¬
strated that the operation
tels
creates
of car¬
depressions and pro¬
rising standard
a
not be beguiled by emo¬
us
glittering
and
appeals
but let us give sober
reflection to the Wall Street Jour¬
nal's recent observation
that "No
people ever entered the compul¬
sory state through a door on which
the price of admission was plainly
posted." Through the doors of
super-state and government-con¬
trolled
cartels
leads to
ratifying
lies
the
road
that
Nationalism, Isolationism,
and
finally, to
Totalitarianism,
another disastrous
why should not
either side of the
erected on
be
will
narrows
and the
seaport itself is to be surrounded
by a pine forest.
W.R, Bull Go. to
Be^'
Smith, Ramsay & Go.
CONN.—W; R.
BRIDGEPORT,
Bull &
nounce
Co., 207 State Street, an¬
that
effective
April 2,
1945, the
of their company
Smith, Ramsay
This represents' no
name
will be changed to
promises,
quarters
In
dollars.
agreement,
Let
tional
&
Co.,
Inc.
change in management, policy or
personnel.
s"i0 *v
Directors
the
years are
E.
who
company
have
an
DeWitt
Miller,
C.
Andrew R. Smith, Ralph
-joI.£2
Ramsay,
L. Talbot
1
and Thomas H/ Trelease.
located
in
New
'
fifari"fere
offices of the
Branch
Shelton.
war.
beep with
average
William R. Bull, Joseph
Haven
and
oiaA
,
1 •>
es¬
This announcement appears as a
as
an
matter of record only and is under no circumstances to he construed
The offering is made only by the Prospectus.
of such Bonds.
f
-i
Wheeling Steel Corporation
•
i
■
,
First
<
>.
~
jx
*•
-
V- 1 1
^
1,
Mortgage Sinking Fund 3%% Bonds, Series C
Dated March 1,
Due March 1,1970
1945
Offering price 103% and accrued interest
\
hear it said our par¬
in
ticipation
super-state
cartels
Copies
This argument goes
of
most
of the
Prospectus may
in this issue as may
world has em¬
braced cartels and there is nothing
that we can do about it. Thus, we
that
the
he obtained
in any
State from only such
dealers participating
legally offer these Bonds under the securities laws of such State.
I
Kuhn, Loeb & Co.
urged to climb abroad the car¬
bandwagon, even though it
means the destruction of a system
are
tel
at home which has
min
Lee Higginson
given our peo¬
Corporation
Harriman
time upon
Blyth & Co., Inc.
this earth.
in
his excellent book, "The Road to
Serfdom", nothing in social evolu¬
tion is inevitable unless thinking
makes it so.
Who can be certain
that other nations
will remain
As
Friedrich
to
wedded
Events
in
Hayek
the
Europe
cartel
Lazard Freres & Co.
Drezel & Co.
Nor are
English united in support of
cartels.
Only last week Prime
Minister Winston Churchill called
the
upon
the
Mellon Securities Corporation
Goldman, Sachs & Co.
F. S. Moseley
Conservative Party to
& Co.
Paine, Webber,
-
Incorporated
»•
New York, March 27,1945.
Jalkson & Curtis
Union Securities Corporation
Stone & Webster and Blodget
\
Smith, Barney & Co.
Kidder, Peabody & Co.
Hornblowcr & Weeks
system?
have not prb-
continent.
The First Boston Corporation
wrote
gressed far enough to indicate
definitely the political and eco¬
nomic desires of The people upon
the European
Ripley & Co.
Incorporated
ple the highest standard of living
ever
achieved anywhere at any
'
.
'
tc
m
$24,000,000
Cartels Not Inevitable
is inevitable.
A.
r.iq.a
enterprise system and placing our
domestic economy in a totalitarian
we
!
NEW ISSUE
foreign
Finally
n
offering of these Bonds for sale or as a solicitation of an offer to buy any
strait-jacket.
the
must
this
,
Mos¬
New
communications.
lem
for any less exclusive
trade is pot
worth the price, if that price is
abandonment of our competitive
magazine article
cluding a recent
with
In
and
reason
!
A
But
little sense to me.
There
conclusion, L appeal to you
no
•
Much written in
is
work
gentlement to proclaim on every
requirement for the disposal of occasion your faith in our compe¬
titive enterprise system; to dem¬
surplus materials abroad.
Again, why should not Congress onstrate by fact and example the
enact legislation making it unlaw¬
superiority of this system over the
ful for America to lend money to programs of the collectivists and
totalitarians; to scrutinize with
foreign enterprises participating in
eyes
schemes that are
cartel arrangements. Such action realistic
abeled
"free
would apply to foreign loans the
enterprise",
but
prudence and common sense ex¬ which might well undermine our
ercised
at
home
enterprise * system,
by
bankers competitive
against lending to enterprises en¬ ending the best hope we have for
gaged in practices destructive of economic progress, high levels of
is
distributed sential to our well-being as well
ironically,
by
an
organization as that of the rest of the world.
calling itself "American Enter¬ Our Government should be vigi¬
prise Association", cities all of lant in opening and preserving
these justifications for cartels. He trade
opportunities abroad
for
also attributes to the cartel the American business and every ef¬
virtue of providing "equality of fort, compatible with our national
opportunity." This phrase contra¬ interest, should be made to ex¬
dicts itself.
Since all men differ pand world trade. Our volume of
in talent, initiative and industry, world trade, proportionately small
creation of "equality of opportu¬ as it has been, is of great impor¬
nity" would shut the door of op¬ tance to our economic life, partic¬
portunity for the efficient, and ularly to those industries largely
drag them down to the level of dependent upon export business.
tels makes
This
for
our
enterprises.
monopolistic
cent defense ^of cartels
the inefficient.
and it is
completed
system.
use
dations
,
two
Haas of the
cartel
the
to
should
of
Harvard Business School in a re¬
Forty modern houses have already been
that housing accommo-^
expected
borders
being rushed 'as
10,000; residents will'
be finished by the end of the year. much as possible since the terrible
great Building schedules for 1946 should devastation of the Tunisiari phase
economic power to give
world take care of another 25,000.
of the war had made most! of the
leadership and direction toward
city's population homeless "and
a more universal adoption of the
their suffering has been
, acute:
competitive
enterprise
system. the United States Senate attac
thirty-five thousand people, were
For instance, when the war in a reservation providing that no
left without shelter of any kind,
Europe ends, there will be billions part of this sum may be loaned
nd another 10,000 huddled in the
of dollars of Lend-Lease materials to any enterprise participating in
arrangements.
We
also comparatively few buildings
that can be converted to peaceful cartel
which were only partially, not
industrial use—perhaps as much could shut out of our rich market
completely, wrecked.
as
thirty billions worth.
In dis¬ foreign monopolists set on dis¬
The reconstruction program for
posing of that surplus material in criminating against us and there¬
Bizerte, one of the most ancient
the countries in which it is stored, by driving us into a totalitarian
cities in Africa, which has been
let us attach a condition that none economy. J am not proposing that
I conquered
of it may be sold or given to any any of these things be done.
innumerable
times
the
centuries
byo-the
enterprise that is a party to any merely suggest courses of action through
cartel arrangement.
There have open to us as protective measures Phoenicians, Vandals, < Arabs,
been suggestions in Congress that against countries, if any there be,
Turks, Romans,
Spaniards wand
the surplus war material in this attempting to strong-arm us into
Barbary pirates, includes an ex¬
country should not be sold to cartel arrangements.
cellent system of transportation
is
Then
billions
ineffi¬■^•an
heaps of rubble to which the city had been reduced during the
battle of Tunis in which the Allies waged such a brilliant
campaign, have now been cleared away and rebuilding has begun;-
a
our
outside
provide
must be
The
their markets.
argument is based
upon a corollary contention that
they
are
necessary
to expand
world
trade.
Actually
cartels
y?
furious
lead¬
must live in
we
jr
Modern City
seaport in the Mediterranean, provide for a new and modern city.
ing Britain to disaster.
peace
operate
are
expanded. New consumer
ciency.
Professor Anton de
tivism
as
Reconstruction plans for ancient Bizerte, France's most important
K
cartels and other forms of collec¬
througRj
^narkets must be created and this
and
obsolescence
plant
power
This
controls, the issues of the forth¬
election.
The
London
Economist weekly thunders that
coming
longs
after
Rebuilt
/•
.
prints
chart from the Cleveland
Business
Bulletin
a
of
long-term trend
railroad stock and bond prices.
the
showing
/
Federal Reserve and
Co.'s
Trust
Thursday, March 29, 1945
CHRONICLE
& FINANCIAL
THE COMMERCIAL
1390
the old
Bretton Woods
between
railroad
stock and bond prices no longer
exist. Whereas railroad credit has
(Continued from page 1370)
shows
chart
The
that
relationships
was
incorporated
*
new
york
•
chicago
•
atlanta
los angeles
•
of
prices
stocks
have
reflected
adequately
enacted
Mutual Funds
Securities
As
a
In
favorable at¬
in
recent years.
the
know, is the first among
investment
this principle in the purchase
to suggest the use of
of mutual investment funds.
v
Keystone Corp. has published a
folder
describing formula plan
investing which sets up in detail
the procedure to follow in operat¬
ing a "Seven Step Formula Plan."
With
the folder is provided
a
worksheet for periodic rebalanc¬
company sponsors
the
ment Time
"Outstanding Facts
Shares,"
folder,
About Selected American
states:
"Those who—
Anticipate Peace-Time Pros-
|
j"
perity » *
Desire to Hedge Against In¬
flation^
Seek Time-Tested Investment
Advantages
—should find these shares ad-
)
!
1
GROUP, Incorporated
63 wall st.
quirements."
meets
today's
the
of
sensible,
most
con¬
and generally satisfac¬
tory methods available."
an
recent
until
has
"There
years
important difference be¬
positions of small and
the
tween
large investors which is not meas¬
ured by the amount of their re¬
Securities Series
its ownership
given to
of securities."
the
Thus writes Lord, Abbett in
National Securities &
Research Corporation
120
LOS
BROADWAY,
NEW YORK,
(S)
ANGELES, 634 8. Spring St.,
(14)
BOSTON,
10 Post Office Square (9)
CHICAGO,
208 So. La Salle St.
issue
current
Prospectuses upon request
(4)
and
Abstracts
of
point out that today
small investors, through the use
of mutual investment companies,
goes
on
to
the
enjoy
can
which
same
advantages
large investors have always
Portrait of
In
a
an
new
News,"
Opportunity
issue
Distributors
of
"Railroad
re¬
Investment Results
"What
investment
of
kind
todian Funds
re¬
listed in refer¬
are
charac¬
investment
their
to
ence
they
teristics and what objectives
:!s
*
*
.
"
Mutual Fund Literature
Selected
re
for trust
Shares
ican
Co.—
Investments
Selected
Memorandum
Amer¬
investment;
current issues of "Selections"
"These
tant."
Things
.
.
and
Impor¬
Seemed
Hugh W. Long & Co.—
.
Revised
prospectus on Manhattan
Bond Fund dated March 15, 1945.
Calvin Bullock—Current is¬
.
.
.
analyzing
"Meat Industry During and After
the War ."
Hare's Ltd.—A new
of
Perspective
folder and
tions"
.
.
"Current Considera¬
a
memorandum
fire
on
in¬
stocks.
tjs
Fund—A
quarterly
share, payable
April 20, 1945, to stock of record
April 10.
Affiliated
American
Foreign
Investing
Corp.—A dividend of 250 a share
payable March 21L4945, to stock
Both
the
General Investors Trust—A
able
from investment dealers or
The
THE
PARKER
ONE
BOSTON,
CORPORATION
COURT
STREET
MASSACHUSETTS
50
Keystone Corporation
of Boston
Congress Street, Boston 9, Mass.
they
occur.
and
Reserve
Agreements
procedure have been leveled
against the Bretton Woods Agree¬
ments.
It is argued that the Fund
is complex and that it will be
controlled by borrowers (debtor.
countries) who will dissipate its
has
It
ment
been
also
broad and
too
are
that
argued
vague
to
be of much
significance. For in¬
the term,
"fundamental
stance,
is not precisely
Agreement.
But
disequilibrium,"
defined
in
learned
have
we
the
a
from
our
Fed¬
experience that it is
eral Reserve
mistake to make the basic terms
of
the
law
detailed
too
and
re¬
strictive.
tensive hearings before the Senate
In
addition, there
ers
were
countless
conversations, discussions, confer¬
pamphlets and ar¬
Out of all these emerged
books,
ences,
with
conditions.
changing
The
Inc.—A
quar¬
April 16, 1945, to sharehold¬
States
for
Treasury
proposal
Clearing
a
published by the Brit¬
documents
Both
ish.
and
International
an
Union was
of¬
were
fered to the
public with the hope
parties would
contribute to the solution of the
interested
all
that
flected
Fund
in
a
revised draft
of the
published in August, 1943.
November of that year saw the
first published version of the plan
for
an
international
bank.
Con¬
ferences,
including
many
with
foreign experts and representa¬
the
was
wide
area,
shareholders of record March 29.
the
Bretton
found to exist, a joint State¬
Experts of many nations
issued in April, 1944.
Discus¬
preliminary
City
and
finally in the three-week confer¬
ence of "representatives of 44 na¬
tions at Bretton Woods in July,
in
meeting
-■
Atlantic
.
The * Federal
augural address:
shall
"We
nomic
-
-
Reserve
Experts of the Board's staff have
deal with
our
eco¬
it is and as it
may
be modified,
not as it
might be if we had a clean sheet
of paper to write upon; and
step by step, we shall make it
system
as
what it should be."
The Bretton Woods Agreements
are
attempt at international
designed
to
help
an
collaboration
achieve
stability and
productive credit*,
They provide two international
institutions
to
accomplish these
objectives: an International Mone-.
monetary
of
extension
Fund to
and
tary
As a result of stability
of agreement that
System
has
been ' intimately
associated
A
quarterly dividend of 210 a# with the Bretton Woods proposals
share payable April 20, 1945, 4b
virtually
from
the
beginning.
Tryst—
view
proposals not as a perfect
honest, intel¬
ligent, cooperative effort to deal
Act. with certain developments that
Similarly, the idea of the Bret¬ may arise. We should remember
ton Woods Agreements is more also that even our Constitution;
than three years old.
Sufficient required subsequent amendments
The
preliminary work had been done as a result of experience.
same has
been true of the Fed¬
to permit private circulation of a
eral Reserve Act.
It will be/true
very rough draft of the Fund pro¬
posal about three years ago.
In of the Bretton Woods Agreements.
agreements
should
be
April of 1943, a proposal for an These
International
Stabilization Fund viewed in the spirit expressed by
Wood row Wilson in his first in¬
was
published
by
the
United
1944.
of record March 31.
Massachusetts Investors
should
We
Woods
document but as an
the original Federal Reserve
sions culminated in a
terly dividend of 100 a share pay¬
or
to
preparation.
ment of
Investors Mutual,
local investment dealer
and
The history of the FedIntensive inquiry
followed the panic of 1907.
1m- oral Reserve Act has reflected the
portant milestones on the longn Necessity of broadening its terms.
road
were
the Pujo Investiga¬ It is only under general directives
tion, the work - of the National that effective operations and pro¬
Monetary Commission, and ex¬ cedures can be evolved to deal
of
payable April 20, 1945, to share¬
your
available
culmination of years
the
was
holders of record March 31.
from
by
Woods
Bretton
marked
confi¬
countries
Federal
the
quarterly dividend of 60 per share
Investors
give
to
assistance
making
tives, were held.
of record March 21.
be obtained
aim
individual
to
other
Woods
Bretton
problems with which the pro¬
posals were concerned.
Criti¬
cisms and suggestions were re¬
$
dividend of 30 per
may
The
Agreements
ticles.
designed to follow.
are
•fi
Pro spectus
too
was
Keystone and the House committees on place for precise definition is in
regulations
and
Corp. in the current
issue of banking and currency-y-the latter administrative
Keynotes. The 10 Keystone Cus¬ newly organized for the purpose. rulings, not in the basic law.
Dividends
Incorporated
may be obtained
that the proposed sys-'
complex to be under-'
stood or to be operated efficiently.
Similar
arguments over control
tern
sults do you want?" asks
Capital Stock of
Prospectus of
at¬
an
of
difficulties
the
meet difficulties when,
"Compare
surance
Shares of
of
net return after taxes
a
.
Group
in
measures
which includes bor-;
(industry, com-,
agriculture).
It was
well
as
and
also argued
is
in¬
no
public,
rowers
merce
the directives of the Fund Agree¬
dence
3.06% from "legal list" bonds.
sue
enjoyed,
con¬
resources.
vated
resources
has
System
economy,
our
countries.
Institu¬
on
Distributors
Shares,
Bond
realize
agement which each as a general
class
to
deflationary
Group tells how corporations can
alone.
That
difference is the degree of man¬
spective
They also asserted that
should be by bankers, as ex¬
tempt to weather their own crises.
Such
measures
reduced
other
1945, were
17,
folder
revised
-a
tional
venient,
been
NATIONAL
March
this return," writes
factor.
the sponsor, "with a net of only
"In
summary—For those in¬ V2 of 1%, after excessive profits
vestors who seek income, profit taxes, from medium-grade bonds
opportunities
and
an
inflation or a return of lessr than 2% from
hedge
through stocks Selected tax-exempt municipals."
American
Shares,
Inc.,
affords
one
the
periods of difficulties. Individual
countries adopted restrictive and
$53,852,010.
paragraphs to each important
tive
Equal Opportunity
•
depicts how Selected
under¬
the for¬
announced that
assets of Investors Mu¬
of
as
In
Shares
tion.
trol
amend¬
many
that
each
country was pretty much depend¬
ent on its own ability to survive
3.06% Net After Taxes
requirements by listing the ad¬
vantages of this type of invest¬
ment and devoting short descrip¬
and
formed person will deny.
Under the gold standard
new york 5. n. y
•
1913
countries' sales abroad and aggra¬
tual
mirably suited to their reThe folder
experience
company,
total gross
DISTRIBUTORS
American
Selected Investments Co., in a
new
mer
on
argued that we should establish
a
single central banking institu¬
expanded by the
The Fed¬
Reserve Act is not perfect
now—after many years of
helpful
principal
of the Reserve Act in
nents
such
credit
'
writer and distributor of
agreement
the
even
Mutual, Inc.
Syndicate,
tors
Request
on
re-'
has been
perienced lenders, rather than by
eral
Mutual, Inc., as well as of Inves¬
Prospectus
another
Banking Act of 1935.
Crabb, Chairman of the
Board and President of Investors
\.".-•A4
in
there
1929 to 1932, was
E.
E.
Croup Securities, Inc.
which shows the
Selected American Sharee
Investors
Reserve
universal
objectives, there has not been uni¬
agreement on a method of
achieving the objectives.
Oppo¬
experience of
ments—but
A Clot* of
was
versal
the banks and this
the
Board
our
Woods
proposals
the history of the
Although
but
all
storm.
gave
making
by
after
power,
economic
Reserve
available,' to
vested in stocks and bonds.
An Invest¬
Table is also provided
Federal
confidence
$14,746,470 invested in mortgages,
as compared with $852,865,746 in¬
account.
respective points
on the Dow-Jones Industrial" Av¬
erage where portfolio shifts are
to be made. The 10 Keystone Cus¬
todian Funds, with their range
all
the
way
from good grade
bonds
to
speculative
common
stocks, would appear to provide
an
excellent medium for use in
the operation of formula plans.
The
colleges and foundations represent
only a small proportion of their
total investment funds.
As last
the
weather
to
mortgage holdings of leading
reported, 14 leading colleges and
foundations had a total of only
tSteelShares
ing^ of
of Brevits that
issue
recent
a
Bretton
Federal
payment—adopted a liquidation
policy—at the very time when a
policy of confidence was needed
of
number
a
successful formula plans in queries, Vance, Sanders points out
result of the publicity given to
operation by leading college endowment funds, much
tention has been drawn to formula plan investing in
Keystone Corp., so far as we
to
of
repeated
spect.
than
further
that, they began to call loans for
Mortgages
vs.
answer
have
Banks withdrew their funds from
and,
Banks
meetings
at
City and Bretton Woods.
Chairman
The
bank
another
the
Conference.
through correspond¬
relationships.
In
a
crisis it was each bank for itself.
in
in
delegate to the Bretton Woods
a
from all over the country
accumulated
ent
them
Atlantic
The
Reserve
of
number
a
joined
a
reserves
one
Formula Plan Investing
of
de¬
ability to
own
panic—especially as the
panic hit the money centers where
charges."
fixed
much
pretty
were
survive
not yet
the
im¬
that will
proved earning power
result
from
the reductions
country be¬
our
pendent on their
true of the
railroads in general," comments
the Cleveland Trust Co., "that
Lord, Abbett & Co.
in
banks
fore the Federal Reserve Act was
probably
is
"It
conferred with experts from the
Treasury and other Governmental ;
departments and have also par- °
ticipated in discussions with for¬
eign representatives. -Technicians;
new
resources
needed.
The
so-called "normal" levels.
'
some
centralized
of
system
largely
that
and
breakdowns
reestablished
and is reflected in the prices of
railroad bonds, railroad stocks are
still selling far below their former
been
now
Proposal
ments and
an
promote
Reconstruction
for
to
ment
currency
multilateral" pay¬
International Bank,
facilitate
and Develop¬
productive in¬
ternational loans.
Since the Bank proposal repre¬
sents
no
great deviation from tra¬
ditional
lending
principles and
practices, it is considered com¬
paratively simple and has received
widespread support and approval.
The
loans
would make or guar-.
reasonable rates specific
for
productive
purposes
which
the private
Bank
antee
be
at
market would
unwilling to make without
a
Volume
-••"[•'w.
-such loans
be
would'
development
.
"
-.
V•.
'
•
.
depends
reserves
world¬
*' ».' *
'•
and before
consent was granted, presumably
full consideration would be given
several fac¬
on
effect
The
initial
the
of
sub¬
funds.
[
break
would
ciples of the Fund are not diffi¬
cult
to
understand.
The Fund
establishes "rules of the game"
promote
interchangeability among member
which
designed
are
to
that
currencies at stable rates so
Fund
zation
operations of the proposed insti¬
If the Fund and the Bank
$900 million by Treasury borrow¬
ing in the market. At the outset,
however,
the Fund Agreement
permits members to deposit noninterest-bearing demand notes in
the
proper
such
provided by the gold standard and
yet avoid the rigidities that led
to periodic collapse of that stand¬
ard.
Each member would under¬
tion, out of the $1,800 million in
of its
market, since funds will be neither
withdrawn from nor transferred
underlying
as
a
notes
it
developed it would be per-
brium
make an appropriate
The Fund Agreement
recognizes that the undertaking
of members to abide by the "rules
mitted
to
change.
unless
adverse balances in
with
this
meet
contribute to the Fund an amount
of
and domestic currency
equal to its quota and would re¬
ceive in return a conditional right
gold
of
to the Fund for limited
access
exchange.
foreign
of
amounts
Although fear has been expressed
in
some
quarters that the re¬
sources
of the Fund would
be
dissipated, adequate controls, both
automatic
discretionary,
and
Agreement
the
in
included
prevent unwise use of the
are
to
Fund's
resources.
Reserve
Federal
The
is neces¬
sarily interested in both the tech¬
nical and the policy aspects of the
Bretton Woods Agreements.
The
though impor¬
mentioned
only
briefly.
Both the Fund and the
Bank, whose head offices would
be in this country, would receive
and make payments.
They would
possess
valuable assets such as
gold and securities that must be
kept safe. There will be a multi¬
tude of transactions to be handled
and recorded.
It is difficult to
technical
aspects,
be
need
tant,
imagine all the household details
with the fiscal agency
connected
and
depositary
functions of the
the Bank but they are
Fund
and
many
and varied and require
technical
and
special
skill
the
and
In
tives.
and
vison
the
drection of our Board
of Governors.
But
much
Reserve has a
fundamental interest
the Federal
more
operation of the proposed
institutions.
Broadly stated, the
in
the
goal of the Federal Reserve is to
help maintain through monetary
and credit action a high level of
production and employment. The
monetary and credit structure of
this country, however, is contin¬
affected
ually
by
international
Fund and the
Bank would work toward a high
and stable level of world trade
transactions.
and
would
The
^therefore help attain
goaL-^
Themisruptive practices that at¬
tended
the
reduction of world
our
one-half between
and the periodic
flights of "hot money" in the pe¬
riod between the wars contributed
trade
1929
by about
1934
and
greatly to
our
difficulties and
aggravated the montary and credit
problems of the Federal Reserve
System. Through achieving a bet¬
ter international balance, the Fund
will help
prevent a recurrence of
the great gold inflows of the 1930's
with their attendant problems for
the Federal Reserve
System.
held
in
Reserve
the
have
draw funds from our money mar¬
ket,
however — either
directly
through drafts on deposits at com¬
mercial banks, or indirectly,
as
States
United
of
sales
through
they
Government
securities
—their
subscriptions would
gold
of
own
In
to
billion
by
on
a
Over the long
it is hoped that
going concern.
of
run,
course,
would
currencies
tive
of member
maintain rela¬
holdings
Fund's
the
there
and
stability
merous
automatic
tionary
controls in
posals, he admitted the
difficulties
encountered in en¬
that would be
the provisions for ex¬
change stability imposed on mem¬
ber countries by the International
forcing
Monetary Fund.
the
*
to
Fund's
the
difficulties
member country prove
Fund
current
agreement,"
"members undertake to
bilateral clearing
transactions on
that
account,
balance of pay¬
ment
difficulties such as might
follow a bad crop or a loss of a
market for a short period. Should
the deficit prove to be more than
temporary, the Fund will con¬
tinue to give the member assis¬
tance only if it takes
adequate
temporary
steps to correct the
situation."
And he remarked also
those
is,
to
its
put
the
iri order
house
and correct its position.
The Fund
stop a member from
can
the Fund if it is not
on
resources
in
drawing
jising* its
accordance with the
of the Fund.
The pur¬
stated in the agreement
it quite clear that the Fu^d
be used to help countries
purposes
poses
make
is
to
meet
as
temporary
and
deficits
to
give them time to correct more
deep-seated maladjustments.
that "the
"It
evident
is
controls are even
more
important than the auto¬
matic controls.
The Fund can
period
postpone the beginning of its ex¬
change operations until it is sat¬
isfied that most members are in
to
that the
Fur, d
me
before individual
during
and the
which
the
Bank are needed most in
post-war' period
countries begin
to impose new and additional re¬
strictions on foreign exchange and
sufficiently stable condition to foreign trade.
Prompt establish¬
warrant use of tbe^Ifyrid^ ,*6r ment of the Fund and the Bark
sources.
Furthermore, once it would also give member countries
has commenced general exchange
confidence which they must havA
operations it can postpone trans¬ to place their economic houses in
order with the least possible de¬
actions with any individual coun¬
lay."
>
•
a:
try which is not in a position to
the
immediate
discre¬
the Fund
to
there
But
substantial use
dollars from time
record only and is under no circumstances to
for sale, or as a solicitation of an offer to
of such securities. The offering is made only by the Prospectus.
This advertisement appears as ct
construed
as an
buy any
matter of
be
offering of these securities
r
\
time.
other
When
their
thg
dollars
with
States
United
in
pay
members
transactions
current
is
the
Fund
discretionary
such
foreign exchange
would certainly be
of
ensue.
of a
to,be more
than temporary, the Fund has a
very
important
discretionary
power to ensure that the; country
does take advantage of the tim»
"Should
nu¬
are
and
result.
this
achieve
will
deflation
during which it is drawing on
with
arrangements and discriminatory
currency practices as give export¬
ers special premiums if they ship
open market or elsewhere in order
to
prevent disturbances in the goods to countries the currencies
of which are particularly desired.
credit situation.
More interesting are the possi-, This commitment applies to the
of restrictions on
ble effects of the Fund's activities abandonment
as
To
of gold and the currencies of
which are mem¬
bers.
This Fund will be used to
assist
member
countries
faced
operations might call for
Reserve
action in
the
Such
Federal
for them to do so.
a Fund of almost $9
is' to be established, made
percussions on the international
position of other countries.
If a
drop in any single country's ex¬
ports leads to defensive .defla¬
tionary measures and restrictions
on
imports, that country's ex¬
change difficulties will spread to
other countries and a vicious jcircle of restrictions on trade and
up
the Illinois
abandon
nels.
made
address
Szymczak
before
"Under
as an
may
to their agreements as far as
exchange rates and exchange re¬
strictions are concerned, it will
the same day
Manufacturers
Association at Chicago, in addi¬
tion
to
describing the interna¬
tional
conditions which renders
need for the Bretton Woods Pro¬
Mr.
he stated,
effect
countries
up
and to the main¬
economic stability at a
another
export
same
the mem¬
desire to live
earnestly
"However
ber
temporary dis¬
serious re¬
prevent
all the countries
gold through commercial chan¬
have the
alternative
necessary.
high level, which is the main ob¬
jective of our System's policy.
they
extent that
To -the
market.
an
help them,
would
but
Banks,
have
which will make such action un¬
not be easy
direct effect on our money
no
tional transactions after this war.
tenance of
gold reserves of
the
danger
countries will fall back
They, must
will
lay
turbances from having
possible to eliminate such
grave
It
exchange.
confidently
can
foreign exchange transactions. In
many
cases
the fact thai assis¬
tance is forthcoming without de¬
them to balance their interna¬
on
Board's point of view,
would contribute
confusion would
is very sick,
concerted effort is made as
as
members
expect assistance from the Fund,
they will be able to undertake to
maintain
stable
exchange rates
and to eliminate restrictions on
regula¬
best, can be only
On the other hand, un¬
world recovery
would result in a
Banks
reduction
they
cause
of
patient
parjtices, there is
the Fund and
the Bank is highly desirable be¬
been
Reserve
our
The
that many
the establishment of
removed from our
gold stock. Use of any deposits
they might have at the Federal
already
to
a
soon
sufficient time.
From
gold
regard
less
be
with
Only
once.
gradual.
and the Federal
authorities must be in
Reserve
»
utilized
simply
It must
body
and recovery, at
r-;
ac¬
75,000
of quired from the, Fund, the effect
experienced execu¬
United States they
would be handled by the Federal
Reserve Banks under the supertrained
money
our
at
immediately af¬
ways
by their
operations.
whole
over
result.
position to pre&nt their consid¬
ered views to the United States
Governors and Executive Direc¬
tors of, these two institutions in
here under earmark since that has
would
member
each
need,
Treasury
special
many
informed
operations
fully
here to pay for the gold
own
they
their accounts
To
by
in
technical
portion of their subscription, they
might affect our market. There
would be no effect, of course, if
temporary
countries.
other
and
Fund
affect
market.
the
they
some
to enable them to meet
the
not
subscrip¬
our
If other members use the funds
game" would be difficult
means were provided
the
of
of
will
means
to
of
payment
Stabilization
our
possible, but
fundamental
disequili¬
made
conditions
when
long
so
to
designed
are
take to maintain the parity
-currency
.
will' be
it
but
initial
rules
These
level.
high
a
will
of the Fund and the Bank
success
Since
whole agreement.
availability, of
assures
foreign exchange trans¬
actions shall be done away with
with
administration and
of the
core
not expected, of course,
is
the
tions
only be deeply concerned
achieve stability such as once was
at
kept
be
may
"It
that
be
tasks.
The Federal Reserve System
not
fected
goods
of
flow
will
their
in
assisted
greatly
place of that portion of their cur¬
rency which is not needed by the
Fund in current operations.
The
international
Tthe
authorities
for
foreign goods and services with¬
out delay.
This feature of the
Fund proposal lies at the very
tary stability.
Fed¬
achieve their objectives the
remaining
the
and
pro¬
that it
receive
can
assurance
to the Fund and
come
help in meeting payments due
or for use in stock
operations.
Real invest¬
be encouraged and the
can
speculative movement of funds
limited; this will contribute sub¬
stantially to international mone¬
tutions.
Reserve
member,
market
make clear
the great interest of the Federal
Reserve in the plans, policies, and
eral
the
with
ceed
sent for deposit in
begun
has
operations
with
any
however, that member
transactions
capital
money
4
Fund
the
"Once
the
of
use
can
ment
This analysis should
new
as
appropriate
Fund's assistance.
foreign banks
United States.
ground quota of the United States amounts
to $2,750 million, one-quarter of
and this is the very reason why it
which must be paid in gold.
The
is considered complicated. A good
enabling legislation now before
bit of complexity arises from the
Congress proposes that ultimately
desire to prevent abuse of this
we
should pay $1,800 million of
institution which Would operate
in a new field 1
The basic prin¬ the subscription from our Stabili¬
Fund
•
control
such
the
in
situation
credit
the
on
on the source of
The total subscription
scription depends
the
to
by the monetary authorities to the
effect of the proposed borrowing
the initial subscription.
losses among its members in
proportion to their stock owner¬
ship.
The
International
Monetary
country;
this
of
sent
make
arising out of shipments of goods,
tourists' expenditures, immigrant
remittances, and the rendering of
services.
Members are permitted
Bank would need to have the con¬
One of these is the form of
tors.
wide, the Bank would distribute
any
mm.-'-.,
Precisely how the Fund's oper¬
ations will
affect our monetary
Since the benefits of
for reconstruction and
guarantee.
1391
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4372
161
to
increase our money supply.
The Fund may acquire
from
our
initial
Shares
sub¬
currency
scription or sales of gold to us,
or, to mention a somewhat remote
The Flintkote
possibility, by borrowing. To bor¬
row in this country, the Fund will
need
our
Use of
Government's consent.
our
$4 Cumulative
initial currency sub¬
to the extent that it
would be provided from the $1.8
billion in our Stabilization Fund,
increase
money
in
our.
supply
the
market.
To
that
it
was
£
.
Price
(plus accrued
The effects of operations of
in
our
$107
per
Share
dividends from March 15, 1945 to
be obtained in any State from such of the
undersigned, as may lawfully offer the securities
Copies of the Prospectus may
including the
the
market would be less complicated
'
leave the money supply
member
bank
reserves
un¬
would, however,
capital market and
the course of the business cycle.
To use
American resources the
affected.
They
influence
the
f 'i
j.vv J;
': :•
*
several Underwriters, '
in such State,
money
than those of the Fund and would
: ;•
•4
date of delivery)
n
port of gold.
and
v. **
provided
gold would have the same effect
on
our money market as an
im¬
in general
>: •
of
the Treasury borrowing from
International Bank
Preferred Stock
.r-.
the
by
the
market, no net effect would be
produced since the Fund would,
through its members, return the
money to the market.
Similarly,
provision of dollars through the
Fund's borrowing in our market
would have no net effect. Acquisi¬
tion of dollars through sales of
extent
Company
(Without par value)
scription,
would
:
the dollars
March 29, 1945.
'
LEHMAN BROTHERS
/ .r-.-p
THE COMMERCIAL & FINANCIAL CHRONICLE
1392
Thursday, March 29, 1945
rnrntm
The bonds
Municipal News & Notes
enacted to meet emergency sit¬
Outmoded laws in many of the
may
for
post-war
of
Forum,
Municipal
the
of
an
or¬
(Luncheon meeting
Old Delmonico Res¬
Oscar's
at
and
William
taurant,
Streets.)
Drawing
Beaver
water
give
Deputy Administrator of the
Public Works Administration,
him
officials
his
that
later
assurance
not waste
some
will
off-hand, illenterprise.
From the
his substance in any
General Fleming said
considered
necessary
of the public official
who is trying to meet a com¬
munity need, and from the stand¬
point of the engineer, the archi¬
tect, the contractor, and the in¬
vestor in municipal securities they
often raise up formidable bar¬
it had been
to obtain special legis¬
standpoint
lation in many of the States be¬
fore needed public works projects
could be built. Many of the pro¬
gressive public works laws enact¬
expired
ed at that time have since
by their own limitations, he add¬
ed,
so
are
that to
now
riers."
certain extent "we
a
Comities in
lack
of the States
many
Announcement
said. Almost
ing
requites
with
every
result
the
that
encrustation
of
most
patch
of
which
-
proferred
made
work
were
to
3Yz%,
$1,441,000
works law today represents "an
statutes,
been
holders
of
3%% and 4%
bonds
dated
May 1,
1940, and
callable May 1, 1945.
The offer
to exchange the bonds for certain
other refunding obligations of the
city was made in the city's beoffer
project
act
public
special enabling
a
has
of the withdrawal of the exchange
general hospitals, General Flem¬
whole
1966 maturities.
after
1950
call¬
are
in
or
part, in inverse
JtH 83 St 84
Telephone 8-9131
in November, 1944, by a
group composed of Stifel, Nicolaus
& Co., Inc., E. Kelly Brown In¬
vestment Co., Russ & Co., Rittenoure Investment Co. and McRobhalf,
erts,
Graham. & Co.
All of the
above-mentioned $ 1 ,-
441,000 bonds have been called
for redemption on May 1, 1945,
and may be presented for pay¬
ment at either the Chase National
of
ning from 103 down to par.
New
York, or at the
National Bank, Austin.
$3,335,000 High Point, N. C.,
Refundings on Market
A syndicate headed by Camp-_
bell, Phelps & Co., New York,
yesterday made public offering of
a
new
issue of $3,335,000 High
C., various coupon re¬
funding bonds, maturing on April
Point, N.
1
from
1946 to
1966
group
the
inclusive.
via
Local Finance Picture
Excellent in 1944
collections, capital improvements
at a standstill, steady accumula¬
tion of reserves to finance public
after the
programs
war.
Despite these favorable trends,
municipalities
generally
during
the
year
devoted
considerable
thought to new sources of revenue
strain
the
ease
local
the
on
Municipal
the
tax,
of
Fi¬
Officers Association reports.
taxes
still
associ¬
ing current tax levies with back
for
taxes
Series, 1V2% Due 1985
prior to April
MANUFACTURERS TRUST
BANKERS TRUST
1949 at a rate or rates
retire all Ninth Series Bonds by maturity.
to
1,
of
the
from
received
cities
during
new sources
the year,
on a
amounts
of
admission
taxes, while
report success
which
however. California and
Washington communities, for ex¬
ample, received substantial
localities
COMPANY, NEW YORK, Paying Agent
income
instead
from
revenue
new
Missouri
with oc¬
cupational licenses based
COMPANY, NEW YORK, Registrar
flat
of
on gross
Ala¬
sum.
bama and
Exempt, in the opinion of General Counsel and Bond Counsel for the Port of New York Authority,
from any and all taxation, (except estate, inheritance and gift taxes) now or here¬
after imposed by the States of New York or New Jersey.
Legal in the opinion of counsel, for investment in New York and New Jersey for state and municipal
officers, banks and savings banks, insurance companies, trustees and other fiduciaries, and eligible
for deposit with state or municipal officers or agencies in New York and New
Jersey for any purpose
for which bonds of such States, respectively, may be deposited.
Virginia cities received
shares of profits from the state
liquor store monopoly.
Cost
borrowing
reached a new low in 1944, with
the Bond Buyer's Index for Aug.
1 and Sept. 1, standing at 1.59%,
information relating to the Port of New York Authority and to these General and Refunding Bonds, reference is
Official Statement of The Port of New York Authority {dated March 21,1945) which should be read prior
purchase of these Bonds. Copies of such Official Statement may be obtained from only such of the underwriters
as are
qualified to act as dealers in securities in this State.
made to the
association
cities
offset
smaller
cities
to
Incorporated
i
• -
-
A. G. Becker & Co.
Incorporated
Bacon, Stevenson & Co.
Chas. E. Weigold & Co.
Dominick & Dominick
Incorporated
Harris, Hall & Company
R.W. Pressprieh & Co.
(Incorporated)
Yarnall & Co.
Geo. B. Gibbons & Company
'
-
Boland, Saffin & Co.
Incorporated
-
Eldredge & Co.
Baker, Weeks & Harden
Incorporated
R. H. Moulton &
Company
Incorporated
----.
-
Hayden, Miller and Company
C. F. Childs and Company
Incorporated
March 29,1945.
Gregory & Son
-
.
'
Incorporated
W.
indebtedness;
are
of
hundreds
towns
its
list
Minnesota
debt-free
of
Red
Rapids,
312
of the
during
Ada.
1944
Lake
the
Falls,
financial
men
available,
reserves
and materials
for
es¬
use
again
association
said.
the
are
The Bureau of the Census survey
for the Federal
Works Agency,
however,
disclosed
which
plans
on
are
hand
governmental
or
to
Bridge
Authority
redemption
on
April 27, 1945, all of its 2%%
serial revenue bonds, due Feb. 1,
1946, through 1952; all of its 3%
serial revenue bonds, due Feb. 1,
1953, through 1975, and all of its
314% sinking fund revenue bonds,
due Feb.
1, 1980, at 104V2 and
called
for
interest.
accrued
Immediate
made
completed and
arranged for.
this
units
Central
Trust
Hanover
and
on
nue
bonds
fice
Trust
at
tion,
hand
on
only
com¬
arranged
$304,680,000.
around
or
or
$1,000,000
arranged
and
principal of¬
Maine - Midland
Company
of
New
York.
$12,000,000 Port Authority
Issue Quickly Distributed
The
now
phrase, "now you see it,
don't," aptly describes
you
the rapidity that characterized the
movement into investment port¬
folios of the
new
issue of
of New
Port
000
$12,000,Authority
York
refunding bonds awarded yester¬
to a syndicate headed
by
Blyth & Co., Inc., on a bid of 99.15
IV2S. The group immediately
reoffered the bonds, which mature
day
for
April 1, 1985, at a price of par.
the
of
Because
great
invest¬
ment demand that developed for
the bonds, the matter of distri¬
bution
simply
was
within
of
the
that
been
brief
a
of allot¬
one
result
had
of
terms
the
the
disposed
period
after
offering had been
announced.
The extent of investment inter¬
offering was previously
by the caliber of the
competition that prevailed among
bidding groups for the issue. Thus
while the winning bid of Blyth
& Co. and associates figured a net
interest
cost
to
the Port Author¬
ity of 1.534%, the runner-up of¬
fer by the Mellon Securities Corp.
which
IV2S, was based
1.536%.
account,
for
99.079
was
net cost of
a
on
While extremely close bidding
is
not\uncommon in the
it
offerings,
case of
is not
likely that the experience in the
Port
ever
instance
Authority
been duplicated.
has
Certainly-
this would seem to be definitely
true
as
regards
any
offering of
such size as $12,000,000.
New
Jersey Tax Structure
Revision Urgeci
600
survey
have
$969,858,000, though
hand
Bank
the
the
of
Th^ New
sion
on
year
total
be
revenue
paying agent,
the sinking fund reve¬
Personal
funds
serial
Company,
pleted plans for 6,559 projects at
of
will
payment
the
on
bonds at the principal office of
total
cost
of
compara¬
a
tively small volume of work for
funds
to
Chairman
Morris,
municipal
when
retirement
according
Triborough
has
St.
Wing,
Red
Charles, International Falls and
Lewisville.
tablish
the
time,
TribdrougH Bridge Galls
Original Debt Issues
indicated
fund sufficient
are
80
will
market.
open
est in the
Kalamazoo
as
According
Hannahs, Ballin & Lee
..
Leslie
country
Municipalities continued to
L. F. Rothschild & Co.
Equitable Securities Corporation
of
Pelican
Paine, Webber, Jackson & Curtis
a
Federals
in
that
at
realize."
people
communities
Stone & Webster and Blodget
the
Massachusetts.
added
Goldman, Sachs & Co.
available
more
communities, including
than
more
in
and
debt-free,
on
noted
bonded
Lansing
in
Blyth & Co., Inc.
be
fund
issue
to
to any
The
shortly before the next
optional date of the utility bonds
in July and a total of $75,000 will
entire
Milwaukee has
For
fund.
ment
Previously, the lowest yield re¬
corded by this index, which is
based on 20 bonds, was on Nov.
1,1943, when it stood at 1.69.
1.77%
most
as
mature
with
debt-free
in
securities
accumulating in the bond retire¬
ment,
"than
recently
of $40,000
Federal
Jan.l.
The
Price 100% and accrued interest
with
Electric
Board
of utilizing utility funds
means
municipal
compared
'• ..I'.,:;
P
of
short-term
a
Ky.,
Plant
acquisition
seven
or
1985
1, 1950
Payments will be made into the Ninth Series Sinking Fund commencing in
cumulative basis will be sufficient
April
six
last
face the necessity of
current taxes only.
on
Some
Due
Not redeemable
the
years now
I, 1945
that the
and
communities supplement¬
revenues
April
issue
in
municipalities,
many
living
Dated
and
hundreds
important
problem
1929
since
delinquent
an
chief
the
of
is
Frankfort,
Water
ordered
tempts to purchase bonds in the
finance picture
for the last year shows continued
reduction of debt, excellent tax
municipal
improvement
The
and
The city, according to report,
has
been
unsuccessful
in
at¬
In this connection, the
Ninth
are
the board.
ation pointed out that collection
Refunding Bonds
and local legislative
frequently needed.
state
changes
Corp., and Bioren & Co.
nance
General and
ably will see further increases in
public salaries because they tend
to lag and because they can be
adjusted only at a slow pace be¬
Frankfort, Ky., Utility Bonds
to Be Redeemed in July
New Issue
Authority
Upward adjustments of salaries
and wages continued, the associa¬
tion said, adding that 1945 prob¬
competitive
issue
pur¬
on
property
The Port of New York
com¬
March 27 and, in addi¬
tion to Campbell, Phelps & Co.,
the group includes Commerce
Union Bank, Allen & Co., Fox,
Reusch & Co., Scott, Horner &
Mason, Inc., Tripp & Co. Inc.,
Crouse, Bennett, Smith
& Co.,
J. M. Dain & Co., First Securities
Corp., Kalman & Co. Inc., Lyons
& Shafto, Inc., McDougal & Con¬
don, Inc., Harvey Fisk & Sons,
Inc., Peoples National Bank of
Charlottesville, Pohl & Co., Inc.,
Ryan, Sutherland & Co., McDonald-Moore & Co., Vance Securities
bidding
to
$12,000,000
have not been
pleted.
cause
underwriting
The
Exchange Offer Withdrawn
authority even
to
build such essential projects as
*
RICHMOND, VIRGINIA
Bell System Teletype:
American
Texarkana, Texas, Bond
in
chased
CRAIGIE&CO.
Bank
legal
due
where plans
at
and
maturities
price of 99.50 to 97.50
1957 to
Bonds
The
F. W.
—
.
back in the dark ages of
public works law."
for the
the
numerical order, at prices run¬
MUNICIPAL BONDS
system, they are excellent.
They
his experiences
upon
the first Executive Officer, and
as
CAROLINA
good and bad, depending upon the
point of view. From the stand¬
point of the taxpayer who would
rather get
his water from the
backyard pump than to be as¬
sessed for the cost of a municipal
ment bankers.
dollar
a
for
1.50%
to
1956
able April 1, 1950, or thereafter,
our public works laws
general are good or bad is not
for me to say," General Fleming
continued. "Perhaps they are both
New York invest¬
ganization of
NORTH and SOUTH
"Whether
meeting
York City before a
continuing
and
general
to
priced to yield
are
0.50%
1946
VIRGINIA—WEST VIRGINIA
provide
in
warned in
New
to
on
needs"
Federal Works Agency,
an address yesterday in
the
than
rather
uations
prove a handicap to
construction yOf public
works
projects, Major General
Philip B. Fleming, Administrator
States
l;
from
Bids
Wire
for
for
In addi¬
was
on
projects
ago
Jersey State
Taxation
Property,
of
Comis-
Intangible
appointed
a
by Governor Walter E.
to study and report upon
orrqti/» s>nd uncertain taxation
Edge
of
intangible
popularly
personal property,
as "tax light¬
known
ning," today' (Tuesday)
released
its
If acted
Cost of Living
favorably by the
upon
Legislature, the Commission's rec¬
will
ommendations
state-wide
first
result
tax
the
Serving
Commission
the
on
your
pay
What Are
of Princeton Uni¬
Here is what
the
David
Senator
of Bergen
Van
he
County.
that
ing
and
State's
abandonment
of
of
method
in
the
the
of
partnerships
of
form
to
or
apply
any
unincorporated
to
this
each corpora¬
$100,000,000
proposed
the
by
Commission.
our
all-time
Dated
the
either in whole
there
controls
top.
at
iThese bonds
000.
will
in
bill
A
excess
As
embodying this plan
were
(butter
Commission's
in
result
the
2%
proposals
exemption
intangi¬
personal property, such as
stocks, bonds, notes and accounts
receivable,
held
by
individual
residents as well as by corpora¬
tions, partnerships and other forms
of business enterprise. The Com¬
raised
is
$3,000,000
that
not
capital
The
would
be
stock
payable
to
the
by
Commission's
now
local
homeowners
225,000
grocers'
shelves,
it
war
will
costs
extent
has
become
with W. J. Dunn &
Stock
a
down to a re¬
by buying the
rad. Bruce &
&
Co., and
full
is
with Con¬
manager
that
is
of
the
war
bound
'
happy
for
some
event,
the
deflationary
on
the
cost
of
focus to the Pacific
temporarily
to
area
curtail
Reconversion will begin to take
hold shortly thereafter. Combined
i
to be
added)
offered when,
as and if issued and received by us, and subject to approval of
legality by Reed, Hoyt & Wjashburn, New York City,
are
Commerce Union Bank
Incorporated
Allen & Company
x
>
r
Tripp & Co.
duction, civilian output will begin
to take up the slack in employ¬
ment and ease the buying reluc¬
tance
erton & Co.. Ltd.
the
of
the
public. Bv the time
Nipponese yell "Uncle" , (or
\
♦''
-1
Fox, Reusch & Co.
;{
\
r
r
* /
Scott, Horner & Mason, Inc.
4
«
.
,
,
Crouse, Bennett, Smith & Co.
4, 1
Harvey Fisk & Sons, Inc.
■
n
!
First Securities
-
"
''
r
a
■
■
'
Kalman &
? '
Company, Inc.
^
McDougdl & Condon, Inc. J. M. Dain & Company
Lyons & Shafto, Inc.
'
■>*
Corporation'
Durham, N. C.
\\
I
i
♦
w
^
L
,
»•'
,
,
\
t
1 11
.
x-
.
I,
'
"
v
k
.
*
'
'
,
w'
*
Peoples National Bank Pohl & Company, Inc. Ryan, Sutherland & Co.
of Charlottesville
McDonald-Moore & Co.
with the still high Jap war pro¬
trading department of J. E. Edg-
likely to be
public demand for goods.
associated
Co., Paul J. Marache
was
not
living.
Unemployment and the shifting of
Co., 621 South
was
97'/2
97/2
,1.50
Campbell, Phelps & Co.
change until the Eu¬
conflict is ended. Not long
pressures
Chronicle)
Mr.
1966
98
98
different
''
Exchange.
Seeger in the past
These bonds
great
outlook
Spring Street, members of the Los
Angeles
is
There
ropean
LOS ANGELES. CALIF.—Earle
Seeger
1965
60,000
l'/2
l'/2 3
H/2
l'/2
"'/2
^
after
but
be
of
any
W. J. Dunn & Company
L.
,175,000
J
;
W/i
98l/2'
widely
after
{
.1956
1.40
1.50
You should be able to keep
living
ahead:
-
Financial
1955
(Accrued interest
\ Gauging the Future
Earle L. Seeger With
The
1/2
a
Here is my forecast of the pat¬
tern of living costs over the years
the local tax rate, on the basis
to
1954
.175,000
shopping may
maintain
for the average
99
doctrine
and
personal property by
? "proximately
eight points in
(Special
150,000
175,000
Selective
991 /i,
99'/2' I
99
J
l'/2
1964
advertised grades of
goods, the less popular
meat, day-old bread and
cake, etc. They are just as nour¬
ishing and palatable as the more
expensive foods.
tangible
1944 rates,
1961
1.30
cuts
other holders of real estate and
of
200,000
1953
less
re¬
Jersey
1.10
200,000
is considerably lower,
will benefit from this expe¬
pay
duce the present tax burden on
New
6
1962
canned
each
effect, this proposal would
200,000
1960
1963
markable
In
upon
,1959
175,000
the
State
property.
year
1/2
1/2
200,000
(or price J,
there isn't much choice of brands
pro¬
levied
.90
1.00
&
200,000
on
that $4,000,000
of this
yield be used to re¬
Tax
1950
getting
long time I have preached
of "bargain" shop¬
ping. When the Japs are knocked
out this is going to be more im¬
portant
than
ever.
Right now
estimated
School
6
6
J 00,000
wise
1948
1949
1.20
For
program
of the
100,000
;i 00,000
1.10
story.
amount
is
1958
1/2
your
duce the
the
start
200,000
I
W.
1/2
1/2
1/2
.1/2
.1/2
mated at $6,000,000 to $7,000,000
poses
.70
Coupon
1957
1952
the
State
The Commission
6
Maturity
1951
would yield state revenues esti¬
annually.
of
living standards
family.
amounting to $1,600,000 annually.
The
,1947
Amount
$200,000
.50%
100,000
tof
Maturity
100,000
rience.
Commission's plan, now yield
revenues
*%
Yield
/v. w/
200,000
you
taxes,
under
repealed
,1946
then be the only way to
taxation of the in¬
tangible personal property which
would be exempted under its pro¬
which
to
soon
Maturity Coupon
•frrv*
to
Maturity
(or pricej
$100,000
only
This
1929.
' ^
General
home
the various municipalities in New
the
above
are
on or
or
the most for
your money. After the war, when
prices are still high and total take-
Jersey from
posal.
too
practice
over
annually
fact, living costs
1925-1926, and
3%
or
none
ble
estimates
Amount
high enough to give you consum¬
ers plenty of headaches.
Today is
from local taxation of all
mission
of
shown below
AMOUNT, MATURITIES AND PRICES
present averaging close to
those
The
matter of
a
at
are
bly.
would
on
Yield
be introduced in the Assem¬
as
Obligations of the City of High Point, payable from unlimited
against all taxable property, and are further secured by a pledge
of Electric revenues and
by a pledge of monies contributed by Guilford County for school
debt service. Such
pledges are those set forth in the Resolutions adopted by the City Council
on
February 22,1945, and March 5,1945.
are
Learning to Economize
of $300,000,-
April 1,
ad valorem taxes levied
•
our younger
people who have
become used to depression prices.
all amounts of allocated
worth
net
Taxes
prior to April 1, I960, 1% if redeemed
prior to April 1, 1965, and without
if redeemed thereafter and before maturity.
and
premium
,
a pound, sugar at 250) are
afraid of post-war prospects
so
a
as
$100,000,000, 3/10 of a mill on
and 2/10 of
on
of
March 28,
1945
Vance Securities
Cali¬
fornia, 623 South Hope Street.
on April 1, 1950, or any interestat the option of the City,
.
in the inverse order of their maturities, at par and accrued
x
premium of 3% if redeemed on or prior to April 1, 1955, 2%
thereafter
for
$1.00
not
the third $100,000,000,
mill
connected
in part,
if redeemed thereafter and
were
which
Housewives who
Due
or
interest, plus
present
buying food at that time
taxed at 4/10 of a mill on the sec¬
a
now
Company
(Thp bonds maturing after April 1, 1950, are subject to redemption
payment date thereafter prior to their respective maturities,
Government has im¬
present
April 1, 1945
That es¬
record
Since
of
none
1920
of
$100,000,000, under the
Commission's proposal, would be
ond
Pacific
CALIF.—Lloyd
Refunding Bonds
basket increased about 130% to its
Amounts of allocated net worth in
excess
with
Chronicle)
Financial
City of High Point, N. C.
was
posed, cost of the average market
formulas
two
the
country.
then
the
which,is allocable to New Jersey
of
The
pay
peak which
than 15% above
tablished
tion's net worth up to
either
to
$3,335,000
He
wm
abnormally high levels.
levied at the rate of 8/10 of a mill
under
(Special
New Issue
After World War I the cost of
more
part of
With Pacific Co. of Calif.
exempt from all present Federal Income
of
chew than before Hitler.
other
busi¬
"corporation business
be
that
Interest
dealer, the ticket seller—they
will all "put the bite" on your
weekly pay envelope for a bigger
tax," the proposed tax would
upon
time."
ture
ness.
a
a
are
living reached
Called
years.
going to edge
higher.
That 50 candy bar will
shrink in size or swell in price to
60 or 70. The landlord, the furni¬
intangible personal
tax and the present
capital stock taxes payable by
domestic and foreign corpora¬
not
price
several
H. Diffenderfer is
Your fuel, laun¬
dry and ice bills
property
would
of
for
of this procedure before.
I repeat
the picture de¬
at this time, that without the OPA
whether or not
maintained.
If: or some such agency, we would
overcoat when you
an
used to pay $30.
This
present
It
inch at
an
that
means
Babson
yQU
franchise tax would replace the
tions.
w.
$37.50; for
corporation franchise
a
tax measured by net worth.
curbs
you
food.
"
„
present
personal property, and the adop¬
tion
on
dog's tail off
even
amount
intangible
taxing
adopt the method of "cutting the
..
system
go
We
buy the same
including
structure,
are
some
may
,.
effects.
LOS ANGELES,
the
before
recommends
adjustments
price
evil
be
though
tax
upon
will
its
I have spoken out in favor
than
war,
New Jersey.
The Commission
then .on,
pends partly
and
soften
grocery
will
bigger
its tax structure
line with its social, economic
political development as has
extensive
to
bill
fifty
past
controls
Danger of Inflation Panic
From
■
.
,
Rather,
%
upward again.
„
we
flation but will only postpone
I
means
your
has
state
the
in
it), the cost of
living should be moving gradually
And
off.
my
the conclusion that
to
come
economic,
worse
humble judgmeaft,
going to see a continued central¬
ized control of prices from the
nation's capital.
However, sudh
will not succeed in preventing in¬
studies,
my
and
lot
a
in
zoom:
that
bring
to
years
into
industrial
no
little
so
is go¬
He
Legislature, the Commission points
done
you
cost
the
of living
125-page report submitted
Governor Edge and the State
out
when
warns
that
now' be
are,
re¬
living-cost runaway of 1920
not be
repeated after this
war.
their equivalent for
professor
means
Alstyne, Jr.,
In its
to
bespecta¬
cled
industrialist;
W.
Paul
Stillman,
Newark • banker;
and
County
the
will
*
Living Costs?
versity, chairman; Jacob S. Glickenhaus, Essex County Freeholder;
Norman F. S. Russell, Burlington
political
have
about!
worry
wartime
From
reasonable.
both
1939 dollar may then probably be only 80 cents.
Since
envelope will probably be thinner than it is now, this is
your
something to
are
of
straints, get ready for a real "in¬
panic." If curbs are ap¬
proved, there will still be pres¬
sure on the upside, but it will be
war
words,
thrown out by a
are
weary
flation
BABSON PARK, MASS.—It may cost you 20% more to live after
than it did before Hitler blew the lid off in 1939.
In other
adjustment
affecting
New
Jersey
business
generally since the enactment of
the state capital stock tax in 1884.
Dr. John F. Sly
Congress
JBabson Forecasts Higher Post-War Living Costs
the
in
1393
the controls
and
Report to the Governor
State Legislature.
the
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4372
Volume 161
Corporation
Bioren & Co.
Right to Be Politically Free
The
(Continued from page 1371)
longer conduct it.
no
.
would
Nor
ican men and women fighting on
the battlefronts of the world—and
son or
to
just
me
good
the
as
because
But
my
hold
American
have
done
fine
a
American laborer.
job for the
And the mag¬
it and
Destroy
have broken the back
Republic.
the
you
I
am
during this war (regardless
exceptions) makes one of the
greatest sagas of unified endeavor
the world has ever'witnessed.
be free from coercion
of
carried
has
a
the American workman must
and intimi¬
say
He
union card for 55
Mr. Jeffers is a union man.
dation—with the right to make up
his
; As a union man,
he rose
president of the great Union
pacific Railroad.
years.
mind at an election what
own
he shall
candidates and measures
to be
or disapprove—to which
candidates and measures he shall
approve
not of the landed gentry.
His father
the
money
and
give his money and support,
to
which he shall
refuse
He
was
pounded earth behind
track-layers—as this pioneer
railroad crawled westward.
And
Bill Jeffers
got
to
duced
a
president of the Road—not by
force
or
coercion
or
political
maneuvers—but because he was
After
I
for
year
choice—and
unionATrom
rose
be
the
the
an
of
son
Irish immigrant be¬
good union man.
would not consider myself
a
union
man
if
did
I
when I believe my
ing
voter.
In
give
sider
up my
asked
union is mak¬
to
above;
unionism
place
support what party,
propositions I desired to
to
free
be
people
or
Post-War Interest Rate Factors
now
recently that
hold all the war bonds
care
to own.
several ■?people
they
they
say
Will
authority they made up the
members that those
members were opposed to Propo¬
sition 12. They did not ask a con¬
tribution of $1
they demand¬
any
minds of 2,300
dollar
continue to
ad¬
any
When
decide that
the
will
a
government
rise in interest rates
is preferable to a further rise in
prices?"
-
refusal to pay, on
the grounds that my political be¬
liefs were my own, I was told that
In other words,
I could not work.
my
right to earn a living de¬
pended upon my supporting some¬
body else's political opinion con¬
Not
A
is not a question
It
sCe, this
just
question of whether piy
a
rights at an election belong to me
or whether they belong to a union.
simple question
rests the fate and future of this
And
:v:'.
Monetary
-Vr*
i
Gold
Reserve
Ratio
*
Stock
Credit
Date—
'A'
Period 1
•
-
;
'
i;';
•
Currency
Circulation
Credit and
Reserve
Credit
Circulation
1,151.4%
65.5%
(In millions of dollars)
$3,679
$222
Dec; 31, 1916____
81.4%
Dec.
31,1917
59.1
2,868
1,171
Dec.
31, 1918
48.0
2,873
2,498
Dec.
31, 1919_*
$2,556
4,086
244.9
54.6
4,951
115.0
38.6
'
39.6
2,707
2,639
3,373
66.4
4.092
32.3
78.7
29.7
4,403
215.8"
56.5
4,716
3,355
70.2
82.2
5,325
247.3
64.2
5,091
3,292
43.3
choice for the right to
31, 1927
31,1928
I do not believe that is the pur¬
for which labor unions were
pose
the
:
desire
4,669
943
4,535
495.1
85.2
votes
4,173
1,853
5,360
225.2
3,632
2,310
5,408
157.2
5,388
197.0
.
47.0
vw
2,145
2.688
5,519
69.4
7,856
2,472
i" 5,373
9.116
2.480;
5,568
367.6
113.2
2,473
6,241
429.0
121.8
136.7
million
1934_^_,
74.2
79.0
■
10,608
.
loo.i
79.7
12.318
2,562
6,447
480.8
June 30, 1938
82.4
12,963
2.596
6,461
499.3
143.1
June 30, 1939
85.6
16,110
2,579
7,047
624.7
167.3
...
-
.
31, 1939
1940
17,644
88.8
1941
2.593
7,598
680.4
173.1
19,963
86.7
2,531
7,848
788.7
967.2
199.8
9,490
1,005.8
192.7
21,995
90.8
91.2
22,620
2,274
2,249
31, 1941
90.8
22,736
2,361
11,161
963.0
168.2
July
1. 1942
88.9
22,739
2,873
12,416
791.5
Dec.
30, 1942
77.1
1943
X3.8
29, 1943
1944
to
.T'ine 28.
9~
JUT,
3,1943—*,
15,407
353.5
104.1
17,420
295.5
89.5
12,430
20.428
177.0
67.0
21,193
o
48.4
6,428
7,576
22,004
56.1
" "
22,726
22,387
62.3
15,423
22,421
137.4
56.0
821
25.335
104.1
45.7
25,750
101.7
pn cOQ
^
the
And
Court,
the
union, so said the
fighting for its exis¬
So the issue was not politi¬
was
cal.
20,506
20,158
44.7
that
in
the
have
are
Omaha—where
Railroad
among
unions in
best
ing
as
an
you
Brotherhoods
the greatest and
the world, operat¬
shop under the
Act of the Con¬
the United States—it
strange to you that the
open
Railway Labor
gress
of
must
seem
Los
we
Angeles judge said that the
lot
our
be its
ourselves
must
we
author and finisher."
by
defeated
be
cannot
That
say?
does Lincoln
What
we
an
from without—that if we
ever
go
down to destruction, it'
will be from an enemy within.
enemy
avoid
To
Los
living under a Con¬
with one
are
Government
stitutional
this,
ask that
I
Well,
American working man.
po¬
under
living
are
we
worker
both
a
are
ican
America
retains
her
people sell their
freedom.
of
a
decision,
I
court
first
the
is
there
not
is
famous
a
in
case
enough
to
that
say
man's vote has not been influ¬
a
It is also necessary for his
enced.
shall
he
that
freedom
have
not
supporting, by
coerced into
been
is
it
from
taken
regimentation—no mat¬
by
under what patriotic name
it
masquerades—if the right of Free
taken
is
administered
America
Court held:
another
which
—"It
them
Choice
found out.
If the
freedom—or
ter
union.
master,0
faith in the Amer¬
If they retain their
people.
trying to find out whether
it's the Constitution of the United
constitution
his
not
safe.
freedom,
the
and
have great
and
Government
Constitutional
As long 1
union remains the servant of4
a
the
I
from
by
to be
bosses,
us,
our
is through.
Its purpose
is dead.
This
nation
in
conceived
was
For the sake of all man¬
Liberty.
kind, don't let it die in bondage.
I am not speaking here for or
closed shop.
But a
constitutes a mo¬
to oppose."
nopoly of labor—and where any
Are we a totalitarian State or monopoly exists, it should be con¬
are
we
a
Democracy—and doesx trolled and regulated for the wel¬
It should
Democracy mean freedom of the" fare of the community.
individual or only freedom for the be governed by the same kind
of laws and restrictions that apply
union and the ruling powers?
The Devil wears many faces, to a water company which con¬
or
measure
or
which he wishes
and the American
see
candi¬
the
otherwise,
money
date
people want to
this
what face is really behind
False
of
mask
Democracy.
Who is it that controls the God-
against
a
closed
shop
electric'
the
trols all the water, or an
controls all
which
company
light and power.
Such companies
given right to earn a living? Who
is this power that can condemn a
man and his family to starvation
if they don't comply with its de¬
service to
sires?
cannot
refuse
because he will"
monopoly of
Is this unseen power
guided and
ington, Adams, Jefferson, Madi¬
son, Lincoln?
Is it inspired by
the love of America and her tra¬
dition of freedom?
Or is it in¬
spired by a selfish desire for its
own
political
advantage
and
power?
What do you think?
From
It
tion
a
ominous
land of the
this
in
arise
power
free?
did such
where
from forced elec¬
comes
of
and control
contributions
heavy voting power placed in a
hands—which gives a rela¬
political
Where
unionism.
of
issue
no
issue between all liberty-
loving citizens and a few unscrup¬
ulous
men
who
are
trying to
gather into their own hands, for
their own use, the Power of the
it was gathered
Germany and in Italy and in
People—just
in
as
other totalitarian countries.
will be
their"
to
-
and I believe they will not
Tyranny.
But there has
been built up in this country an
unelected government
which is
superseding in power and author¬
ity the elected government.
And
a
dissenting voice raised against
all-encompas¬
but
unelected
this
sing power is condemned to
oblit¬
branded with the stand- ♦.
of labor hater, labor
eration,
name
other venomreality, he'
baiter, fascist, and
,
terms; whereas, in
pleading for Constitutional
Government for all—the same law
for the rich and the poor, the edu¬
cated
and the uneducated,
the
is only
majority and the minority, union
and
non-union—he is speaking
against the injustice of one
imposing its will upon the other.
There must be 80 or 90 million
out
who
Constitutional
of the
citizens of the United States
quickly stopped,
rights and freedom
all individual
dollar
endure
ous
is
a
campaign fund.
there is an uncontrolled
vor,
tively few people coercive power
over
Legislatures and Congress,
and even may affect pur courts.
an
man
anything, including
labor, as in my case, there is tyr¬
anny.
Power corrupts, but ab¬
solute power corrupts absolutely.:
The American people do not fa¬
ard
This
a
contribute
not
few
gone—and only the right
in
believe
still
and
Government
freedom
individual.
to obey left to us.
Jefferson
Thomas
to
tance
said, "Resis¬
is
obedience to
tryants
God."
majority
great
Dangers of High Pressure Groups
These
80
millions
90
or
must
forget thqt they are Democrats or
Republicans,
or
Protestants or
Unions in Politics
The
union Catholics, union
of
non-union—
or
individual
membership and officers are fine,
and unite to save their
right-thinking American men and
women.
And yet we find
avia¬
liberty and their rights as free
Americans—unite to prevent oui*
and
outraged
unions—an army
opposed to and threatening them
many courts and Legislatures
tion
indignant
against
.
.
many
.
in terror of them.
certain
Because
the'
forsaken
high
government, our Congress, our
legislatures, and our courts from
have
for
purpose
into politics to control
high-pressured
beiiju
mission
of
Why?
leaders
which the union was created, and
by
vate
sub¬
operating for pri¬
gain—groups
and
purpose
themselves the
that have taken to
divine
into
minority groups
any
individuals
human
and
by Control of the right to
right
control
to
destiny—even the right of life
and bend the nation to their will.
death
country
work.
the
As
war
small
on,
government
and
cliques
loom
over
States
is
no
elements
tion
exception
to
trend.
It
is
a
pity
that the Monroe
apply to foreign
Doctrine does not
ideology
as
>
well,
as
to
President
foreign
Madison
said,
"It
many
the
is
un
to
seem
sources
and
with
-
have
American
captured
of public informa¬
dissemination *of
result
that
news,
millions
of
unorganized, plain common sense
Americans find themselves with¬
out
outlets
their
more
;
guns.
Unfortunately,
by
and
The
larger
world.
the
darker
United
this
moves
country sees the spectre of
after
oppression
Here
_
as
have gone
148.7
Dec.
opposed
closed shop.
which
Period 6
•
it
litical—because
But
it is not po¬
192.3
8,733
which the absent soldier
the Court holds that
tence.
Period 5
31, 1940
H
million
and over one
cast against it—a
it;
supported two-to-one.
vote
49.2
150.1
votes
measure
56.1
4.036
317.8 "
for
cast
57.9
?
:
4,226
June 30, 1936
June 30,
its
of the State of California—a prop¬
June 30, 1935
Dec.
defending
and I was defending my
right—so we went to court.
A judge of the Superior Court
of Los Angeles County found in
favor of the union—on the ground,
and
mark
this
well—on
the
power
Lincoln
citizen who still has illusive hopes
And if it is not
64.9
63.8
31, 1933
June 25,
was
59.3
>
62.9
31, 1932
June 30,
AFRA
But
in
least
at
have,
we
our
Abraham
And
litical freedom be restored to the
hundred per cent wrong.
213.0
Period 4
Dec.
And it is
252.5
57.6
Dec.
not
Gompers—
is un-American.
osition that had over one
1931-
June 30, 1937
was
4,686
66.5
June 30,
American
4,578
31, 1931
Dec.
Samuel
of
desire
true
I know it
1,809
June 30, 1932
Dec.
the
of
labor leaders.
1,583
Period 3
Dec.
not believe that is
I do
formed.
3,854
1,655
So
liberties." <•
*
wrote,
"At what point is the approach
of danger to be expected?
If it
ever reach us, it must spring from '
amongst us
if destruction be
experiment on
Angeles County, one law for the
union and another for the lonely
It is
3,997
1,563
million people.
a
63.3
."
:
31, 1929
June 30.
earn
living?
ground that Proposition 12 was
not a political issue.
Here was a proposition on the
ballot to change the Constitution*
.
Period 2
Dec.
have to sell that freedom
84.6
Dec, 31. 1921
Dec.
Democ¬
a
69.6
v
Dec; 31,, 1920
Dec.
a
choice.
one
of Gold in
to Federal
Federal
Reserve
Federal
\
or
be
And we are not a Democracy
by just calling ourselves a Democ¬
racy.
Democracy means freedom
Ratio
A
country
to
are
we
racy.
we
the
needs
union
a
to fight a proposition, af¬
money
that
on
for it
B
of Unionism
of unionism or non-unionism.
is
if
not
inspired by the spirits of Wash¬
Question
a
You
the
SIX PERIODS OP RECENT
but
new
purpose.
And upon my
-
.
.
of sus¬
threat
on
pension—and suspension denies
the right to work.
In the by-laws of the Los An¬
geles AFRA Local, there is no
mention of the right to assess for
Do
vance?
7.
will result in
political purpose without calling
Without
of
prices
CERTAIN GOLD RATIOS DURING
AMERICAN HISTORY
IN
THE TRENDS
.
6.
before
the members to meeting.
of
(Continued from page 1372)
purchases of government
securities unless a higher rate of
interest is offered? I have heard
ish their
on or
Suspension, of course, automat¬
totalitarian
Analyses
a
agrees
to take alarm at the first
proper
...
judge
me that
with
political assessment is wrong—
apparently
States—or
ically costs you your job.
You will note the Board of Di¬
rectors made the assessment for
one
a
union—with the open shop.
The Los Angeles County
But
nation—whether
E. Harold Schocmraaker
such
In
"Failure to pay
to
rights as an American
that I would ever be
what you already have
under which you have grown
suspension."
not
Americanism—or that I would not
obeyed my union boss' orders
if I
joining the union, I did
that I was required
citizen—or
object
not
paid
as¬
trary to my own.
suspect
But I
a good
mistake—nor would I con¬
myself a good union man
a
giving the union leaders
use
of my free, rights as a
the
My host is a good union man.
Many of these guests are good
union men.
And I believe that
am
it to be a
I did not mean
proxy,
and drove spikes.
I
so,
ship,
fathei**&|ioyelled dirt
which his
and
and paid my $100 a year
dues without question.
But when I signed for member¬
did
of the Railroad
president
comes
on
of
land
Radio
of
Federation
I was asked to join
Artists.
That is
opportunity—when
is free America.
so, a union
was
the' title of the
or
under
American
thedoest man.
That
a
formed
payment
required.
"It must be
a
and
into
great, wise and powerful
with
Sept. 1, 1944.
ed
I have con¬
Radio Theatre of the air.
had been conducting it
For nearly ten years
telegraphers
the
his
for Joining a Union
Reasons
job as a telega
a
joined
iphqr,
;
and his suport.
of
"Immediate
ing majority of union men—lead¬
ers
and members both—when I
done
was
I'm
sessment is
union man and I believe
a
paragraph of the letter
in part:
says
fighting for its ex¬
istence because it was threatened
Artists
law for all.
November."
State Ballot in
The last
speaking for an overwhelm¬
am
the mis-titled
or
'Right of Employment Amend¬
to be submitted on the
of the United States.
I
12
ment'
back¬
the
is
opposi¬
the campaign in
tion to No.
FREE.
of
bone
American
the
action of the Board of
Directors of AFRA, each mem¬
ber has been assessed $1 to fi¬
"By
nance
Radio
of
Federation
American
fecting it to be voted on by three
follows:
as
support any per¬
that I thought was
freedom
paragraph of which reads
the first
is simple.
It is the
American workman.
TO BE POLIT¬
Political
superhuman job that
working man h£is
nificent and
16, 1944, I received
a
letter from AFRA (that's the
abbreviated name for my union),
About Aug.
of very
ICALLY
highest regard the
Labor Unions.
They
not individually free.
are
best interests of the
matter who told me
Would you?
case
America
made
has
great, and there can be no free¬
dom for the nation if its people
It is THE RIGHT
the
in
so.
My
case
know that
As important for you to
I
involves
case
disagreement with a union, or
least 'with union authority, it
a
at
do
v
politically.
others to think for me
the
nation—no
to
I
measure
against
Americans you are.
right.
not think he was
I did
of American children—and Amer¬
listen
PO¬
to vote if
a
way
LITICAL boss told me
as the fathers and
and brothers and sisters
mothers
if I voted the
citizen
but
jury
a
i
hear me—not as
teners on the air
support—or that I would actually
be removed from my job because
I would not concede the right of
Freedom
to pay money to support or opThere are many distinguished I pose a proposition at an election
when I hold a different political
guests in this room today—union
members,
civic
and
industrial belief, any more than I would
leaders. I hope they and the lis¬ consider myself a good American
why I
Thursday, March 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
1394
In
for the
views.
But
expression of
million or
80
still exist.
many
instances, those
.
who
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4372
161
would speak out are
frightened by
the "smear" technique which the
un-American
elements
have
adopted
toward rail
who
American Labor
Group on Int'l
Affairs Approves Bretton Woods
oppose
them.
However,
somewhere,
somehow, these millions of plain
sense
people are going
leadership and outlets for
the expression of their will.
Then, like Gulliver—the sleep¬
ing giant of the great American
people — bound
down
by
the
strings of the Boss Lilliputians—
.will rise up and walk.
(Continued from page 1376)
.common
find
to
find
We
must
great
mass
the
for
voice
a
of Americans who
out against the rap§
want to cry
raise real
I
We have
to a
our
no.rea¬
see
for scrapping it in
son
.
can
wars
under
conclusion
this
one.
the Battle of the
won
Atlantic, The Battle of the Pacific,
the Battle of France, and
<
the
of
tle
And
we
..God,
Philippines
won.
nearing victory, thank
are
Germany.
Battle of
the
in
the Bat¬
are
!And all during these gallant and
victories we have
been losing the Battle of America
on
the
home front—losing
the,
'.heavy-priced
'very purpose for which
; other battles were fought.
these
whom we sent out
Freedom and the
American way of life, return and
find that we have changed front
If
to
our
men,
fight
for
government by law to government
by men—
That many our courts no longer
ruled by
strive for justice but are
political expediency—
',w .<
That government of the people
is no longer by the people but by
high-pressure minority groups—
,
That the
mained
free
.
one
to
us,
rights
safeguard that re¬
the people—our
at
election—has
an
and
union Bpard of Di¬
been taken from many of us
delivered to
a
rectors—
That
have
country
this
the
denied
been
work—forced from
right
trade
a
to
or pro¬
given
-their lives—condemned to idle¬
ness
and the dole because they
will not contribute to the
political
beliefs of others—
What will they
will they say when
have
home
America—that
on every
world?
the
in
battlefront
at
we
What
they find that
surrendered
have
been
guilty of treason to our fighting
forces by letting an enemy come
'in
behind them and cut away
'their individual
freedom while
their blood was being shed for it
Have we as a nation become so
afraid to assert ourselves, that we
sell
children
our
into
throw away now the gifts
we
Jefferson and Lin¬
coln—if we undo now the work
of the countless thousands who
of Washington,
given their lives for Liberty,
be guilty of a crime
have
we
shall
against God and man that it will
take centuries to expiate.
This
is the hope of
it was built upon
liberty.
country
mankind,
and
1
My voice is the voice of one
crying in the Wilderness—make
straight your paths for freedom,
God's greatest gift to man.
mothers whose sons are fight¬
ing abroad if they must return
to serfdom here at home.
They
!did not pay for
.Must
they
pay
the right to fight.
for the right to
You
can
power—and
ment
abuse
for
of
of
stop govern¬
sanctioning
such
you can
from
just
abuse
this
stop
power—if you organize
thing—the right of
politically free.
one
the worker to be
And
onto
hang
Constitutional
would to a
boiling sea.
The
Constitution of the United States
-Government
life-raft
and
in
as
you
a
the'governing power of Con¬
are being replaced by ad¬
gress
ministrative
power
of
bodies
making
with
the
regulations
which have the force of law.
cooperation
area;
England for cooperation in
in
the sterling area—on the assump¬
United
by
England will be helped
large gift or loan from the
a
States
exercise
to
proposed by a group of bankers
and economists,
Mr. Halasi has
tary leadership after the
this to say:
tion
"The
dollar-sterling
leave
would
mone¬
war.
solu¬
area
of the pic¬
out
under
ture all those countries which re¬
the leadership of the key-currency
main outside the dollar or sterling
cooperation,
the United
countries,
States
and
England, would be desirable for
the purpose of bridging over tem¬
deficits in countries of the
porary
dollar and sterling area
of dollar
by means
sterling credits or by
devaluations
so
that
they would not be forced to resort
or
approved
to
tional
international
or
of
'destructive
measures
na¬
prosperity.'
"The United States would then
leaving them; on the other
hand, complete freedom for de¬
valuing their currencies without
international supervision. It would
constitute no really international
areas,
followed within the dollar and the
Decisions
sterling
areas?
have
be
made
to
credits
to
respect
would
continuously in
particular
to
dictatorship.
You can
stop this only through organizat¬
'
ion.
V,
v
little—have^ run to cover in the
they
hide
can
storm—afraid
the
through
out
of
the
propa¬
that has
been
them
to
shoot
a machine gun
machine
against
maledictions, as
ganda
turned
shoots bullets.
Don't think
we
only threat¬
are
with totalitarianism.
ened
To
a
great extent we have totalitarian¬
ism
today,
business
because
and
men
too
many
laboring
men
alike have been Neros who fiddle
while the Liberty
of their
coun¬
try burns.
low this
ism
Americans.
bad
Many
of them are blind Americans who
cannot
tion
net of regimenta¬
the
see
which
into
they
swim-'
are
ming like a school of fish.
And the bait that draws
of
so many
fish is the alluring sound
from Worry, Free from
Free
Fear, Free from Want, free from
everything — including Freedom!
This is really no Utopian dream
the
It's the
harnessing
and
enslaving
of
American might for private and
for
working
man.
poltical use.
Remember that all
tory .every, free
lasted
but
centuries
few
a
through his¬
Democracy has
and
passed into a dictatorship.
Dbn't be regimented.
Don't be
forced into obeying the political
orders of your
boss—union
in¬
or
said, "Obedience
without liberty is slavery."
Many of you are still free men
It is for you to res¬
and women.
those of
who have felt the
us
before
hand of Tyranny upon us,
yourselves
you
and
regimented
are
right to work is taken
mine has been from
your
as
me,
Edmund
Burke,
warned,
man,
good
a
Irish
bad
men
"When
combine, the-%ood must unite—
else they will fall one by one, an
sacrifice in
unpitied
unequal
an
struggle."
The
unions
formed
were
for
and opportunity
The union man is
better conditions
freedom.
and
in
danger
and
his
children
of
losing for
himself
and
grand¬
children
the
very
his
created.
was
pends
In
on a
All
and
freedom
union
de¬
freedom
truly free election.,
closing, may I say that I miss,
visit
I
than
more
in
can
million
10
tell
you,
homes
my
every
Monday night.
The friendship of
those unseen millions warmed my
heart
as
nothing in life has ever
would rather never
done—but* I
again than visit them
as
a
betraver of the principles
that made those homes possible.
visit
them
There is one union that I
above
all
others—the
place
Union
the United States of America.
of
-
supervised by public
The question is then
be
to
whether these recurrent decisions
would
made
be
definite
the
on
England
of
would
be
followed
decisions
whenever
whether
basis
establishing
agreements,
are
made or
and
which
rules
j
|
1
11
By JOHN DUTTON
-
as
States
United
the
leaders would proceed
'
For the past several years
there have been all sorts of arguments,
both pro
and con, regarding the quotation on over-the-counter
securities in the daily papers. More time and energy has been wasted
trying to devise a fair and proper method of handling th^s matter
than almost any other phase of the retail end of the securities busi¬
ness.
At the present time the N. A. S. D. is attempting to put a new,
system of newspaper quotes into effect. Numerous complaints have
come
to hand indicating that the spreads in the quotations! on some
securities under the new system, where inaugurated, are such as
tVjnake it impossible for retailers to sell them and make a profit.
Thk| is another effort to solve the problem of giving the! public a
better indication of markets, and also provide a spread that is
-sufficiently wide enough to cover a dealer's requirements.
This problem has never been solved to the satisfaction,of any
one.
Neither the S. E. C., the N. A.S. D., the wholesale firms makiqg
primary markets, the retail dealer, or the retail salesman, !has been
satisfied with any quotation system used in the past. It is our opinion
that
no
one
will
believe this to be so,
being bound by rules.
Mr. Halasi, in expressing views
on
the working of the operation
of the Fund and the Bank in pro¬
The
be satisfied with any system.
ever
through consultation but without
reason
we
beginning.
"harmonizing" high
in member
countries, holds that "the Bretton
and
moting
levels of employment
mote
thus
Conference
that efforts
recommends
rightly
to
pro¬
of employment
standards in mem¬
high levels
and raise living
ber countries should be
ized."
"harmon¬
Philadelphia Confer¬
the International Labor
The
of
ence
Organization (I. L. O.) in 1944 de¬
voted much attention to this prob¬
the initiative of Aus¬
Canadian delegates,
it discussed the problem of simul¬
lem when, at
tralian
and
(pari-pasu) anti-inflation
and anti-deflation measures by all
the members of the United Na¬
tions who found themselves in the
same phase of the business cycle.
Those delegates suggested that the
United
Nations
should
commit
You can't solve the unsolvable.
quotations given to the papers by any dealer, or
by any committee, as to what they BELIEVE^a retail dealer would
have bought or sold a specific security, the DAY BEFORE THIS
QUOTE APPEARED IN- TODAY'S PAPER, can mean anything
definite, or positive, to anyone. When an investor buys or sells a
security, HE BUYS OR SELLS IT TODAY—NOT YESTERDAY.
What good are yesterday's quotes?
What does it matter if some
dealer says that another dealer should buy or sell a security at a
certain price—DOES THAT CONSTITUTE A MARKET?
zy ..
In many cases, markets have moved up or down beyond that
printed in today's paper (referring of course to yesterday's market)
and where it has been almost impossible to convince the investor,
that he should pay more than the newspaper quote if he were a
First of all, no
buyer, or receive less if a seller. Sometimes newspaper quotes have
been given to the press, where the inside offered price has been
above that quoted in the papers. Yet the customer, like most people
by
international
an
agreement to "harmonize" their
domestic employment policies.
It
was decided in Philadelphia that
the
of
governments
Nations should call a
the
United
read
who
must
be
the
papers,
believes that if something is in the paper it
so.
The
taneous
themselves
is that the whole thing is nonsensical from the
-
answer
NEWSPAPER
to
problem, as
QUOTATIONS
OF
s6e it, is CUT OUT ALL
ALL
OVER-THE-COUNTER
we
SECURITIES if the retail securities business is going to be adversely
affected by the N. A. S.
D.'s
new
system.
understand that if they want quotes or
is
pick
Then educate the public to
markets, all they have to do
the telephone and call their security dealer or broker.
up
get real markets and quotes. They will be today's
In this way they'll
markets too—not
yesterday's ideas, guesses, or suppositions. k After
all the newspaper don't buy or sell securities—it's about time the
N. A. S. D., the S. E. C., and the public found this out. However, most
retail securities dealers, and their salesmen, HAVE KNOWN THIS
FOR YEARS.
special con¬
and
cured
for the purpose
to
it would
this
governmental delegates
of deliberating on
problem.
An international
conference
which
has
been
lending abroad are desirable
permit the successful working
of the Bretton Woods Agreements.
"A final
re¬
objection to the exten¬
the discus¬ sion of U. S. exports," he says,
"stems from the fear that eco¬
sion of the problem of trade bar¬
nomic disturbances will arise in
riers will in all probability also
this country when debtor coun¬
discuss the question of an inter¬
tries repay their debts or pay in¬
national agreement for simulta¬
neous employment policies in
all terest and dividends. Unless they
are prepared to restrict their im¬
member countries. (This would be
only natural, since member coun¬ ports, debtor countries can make
such payments only if they can
tries can hardly be expected to
remove trade barriers as long
as increase their exports. This they
cannot attain unless the United
they have to fear great depres¬
States increases its imports.
But,
sions in important member counthe argument
runs,
the United
tries y
States
can
increase its imports
"The Bretton Woods agreements
themselves," he continues, "are only if it is prepared to reduce
This argument has been
based on the principle of good tariffs.
used both by advocates of a sub¬
neighbor economic policies. The
Fund's management would refuse stantial reduction of the present
approval of devaluations which high tariffs, and those who want
cently announced for
aim
at
gaining
competitive ad¬
forbid avoidable ex¬
change controls (except on 'capi¬
tal account transactions') and dis¬
vantages and
to
keep them.
The former con¬
it is no use to promote for¬
tend
lending
eign;
until
tariffs are reduced,
American
and the latter,
monetary
practices
the transition period.
But
wishing to avoid tariff reduction,
contend that extension of foreign
members will hesitate to
acquiesce in the restriction of
their freedom in monetary poli¬
cies
unless
full employment is
maintained in the other member
prejudicial to
legitimate American interests.
"In this paper, the convictiop
has
been
repeatedly expressed
particularly those which
constitute important markets for
their exports."
Mr. Halasi appears firm in his
conviction that tariff reductions
tariffs would
criminatory
after
many
countries,
•
v
the
ference of
William Penn
cue
also
Woods
toward totalitarian
course
are
temporary deficits. Changes
rates would have
in the exchange
authorities.
Too many Americans—big and
hope
for the purpose of bridging
over
is
"Yesterday's Markets Today"
Of f
"But what procedure would be
area,
Stop Dictatorship
This
The Securities Salesman's Corner
solution.
countries in the dollar or sterling
opportunity for which his
work?
dollar
the
tary
tion that
It will be a hollow victory to
you
have the responsibility for mone¬
Commenting on the alternative
"Key Currency" Stabilization idea
from you
the rock of individual
;
in
real income
increase
dustrial.
.slavery?
If
the agreements
then
abroad?
will
to
I shall
other ways."
eager
say—these men
fighting
•who have been
we
also
help
as
I do not think that all who fol¬
in
people
fession to which they have
:
But
attempt to show,
will
will
income.
"Monetary
We have fought five
•Constitution.
they
employment,
.of American Freedom.
successful
1395
lending may prove
that
in
the
many
crease
reduction of American
be highly desirable
respects:
the
real
country, and by
ican
it would in¬
of the
income
increasing Amer¬
exports above the level se¬
by
actual
capital
facilitate
the
exports,
service
of
old debts.
This would also protect
the resources of the Fund and the
Bank.
-i
"But
a
exports
program for
by
without
even
solution
found
to
in
hand
one
we
substantial
be developed
can
tariff reform.
the
The
problem is to be
full employment on the
and a steady flow of
foreign lending
"If
of
means
foreign lending
encouraging
on
have full
the other.
employment in
this country with the
high national
implies and with
this high national income increas¬
ing still further year by year be¬
cause of progress in
productivity
and increase
in population, tour
imports
will
automatically in¬
crease sufficiently to take care of
interest, dividend, and amortiza¬
tion payments by the debtor, coun¬
income that this
This will be
tries.
out any change
in
so
our
even
with¬
tariff struc¬
ture.
.•:
"A steady flow of
'
foreign lend¬
ing will meanwhile permit those
debtor
countries
otherwise need
which
would
export surplus
for servicing their foreign debts
to continue buying in the United
States.
then
No
arise
an
difficulties
from
the
would
necessity of
servicing debts for at least a gen¬
eration
during
which
foreign
countries will be in need of capi¬
tal
imports."
Thursday, March 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
1396
general welfare. But the Assem¬ being framed by nations who are
the principal victors in a great
bly is subordinated to the Secur¬
ity Council.
Once the Security war, who have rearranged the
Their
Council assumes jurisdiction, the world to suit themselves.
(Continued from page 1374)
General Assembly must be mute. principal concern is that it should
that
can
be made consistently The Security Council itseh is con¬ never become disarranged.
So
his message to Congress of Jan¬
with holding fast to the good that fined to a mechanistic role.
It they plan a structure of peace
uary
6 he explained that the
we have.
Anyone who has had can act only after there is already which can never be altered with¬
practice of cooperation had been
with
international a dispute likely to threaten the out the consent-of each of them.
inhibited by the idealism of the experience
No one of them trusts the others
American
people.
"Perfection¬ conferences knows that a confer¬ peace. Then it can call for sanc¬
ence of some 40 nations must de¬
tions, but only "to maintain or sufficiently to permit of decisions
ism," he said, "may obstruct the
pend largely on the preparatory restore."
It has no mandate to in which it does not concur. Per¬
paths to international peace."
work of a few.
The San Fran¬ seek to remedy conditions which haps, also, some lack self-confi¬
The reply came back quickly.
cisco Conference must depend on unnecessarily repress human as¬ dence.
They may not feel sure
One place where that reply was
Dumbarton Oaks, otherwise there
pirations or to seek the revision of their own ability to go on de¬
voiced was the Cleveland Church
will be chaos.
of treaties or prior international serving top rank in the world.
Conference held
10 days later.
decisions which will seem unjust. Therefore, they seek artificially to
Two Changes Suggested
There, delegates from all over the
They
That is seriously wrong.
The perpetuate that position.
United 'States
unanimously
However, some changes can be,
think through such rigidities to
Security Council is the dominant
adopted this resolution:
and will be, made.
I here suggest
find safety.
Actually these rigid¬
"We believe our Government two which could readily be fitted organ of the new world organiza¬
ities imperil the whole structure
tion.
It is given "primary re¬
should not merely talk about its into the framework of Dumbarton
of peace.
ideals.
It must get down into Oaks and which would greatly sponsibility" for the maintenance
It is the great tragedy of vic¬
of peace.
It is designed to "func¬
the
arena
and fearlessly and improve the chance we will give
tion continuously."
It is compact tory that the victors seek a riskskilfully battle for them."
to posterity.
less peace.
Peace cannot be had
enough to be effective. Its mem¬
The sentiment thus voiced was
My first proposal is that the
on those terms.
Peace, like war,
bership will permit the great na¬
representative of the overwhelm¬ organization should be infused tions there to exercise a respon¬ requires that peoples go on tak¬
ing sentiment of the American with an ethical spirit, the spirit
The kind of risk is
sibility comparable to their power. ing risks.
people.
So,
when
President of justice. I realize full well that That Council ought to be endued different. Peace requires each
victor to trust others to the extent
Roosevelt
embarked
for
the "justice" is not readily defined. with an active principle.
It
of permitting change without the
Crimea, he carried with him a It means different things to dif¬
should judge the merits of situa¬
But it means some¬
clear mandate to make coopera¬ ferent men.
unanimous consent of any named
tions which may give rise to fric¬
thing, and something very vital,
tion a reality.
That means taking a risk
tion and neither it nor member group.
The charter should
on
the fairness and decency of
That j mandate
the President to all men.
states should be required to use
From Yalta to San Francisco
He accepted, for the
American people, a responsibility
carried out.
European political decisions.
its side ac¬
cepted the participation of the
United [ States and of Great Brit^«in in decisions which vitally affected'it, notably the decision of
what Would be the Soviet's westfor
The £>oviet Union on
■v
Thereby a new
era
was
opened.
The United
States abandoned a form of aloof¬
boundary.
tern
which it had been practicing.
The Soviet Union accepted joint
action on matters that it had the
ness
physical power to settle for itself.
Those are two momentous prece¬
dents.
'They show that coopera¬
tion cart be made a living reality.
Without* that Dumbarton Oaks
wouijd have been a hollow sham.
organization, as
require the new
business, to un¬
dertake the difficult but essential
its first order of
task of developing
be
to
mean
conceptions of
condition found
is what I
when I talk about giving the
That
unjust.
We do not
justice
by
which it will be want the new
Security Council
guided.
Only thus will it sur¬ to
perish, as the old League Coun¬
vive.
For survival is awarded
cil perished, under the blight of a
only those who seek moral goals
mechanistic conception.
acceptable to the mass of man¬
My second suggestion is that
kind.
As
Alexander Hamilton
said: Government "ought to con¬ the procedure for amending the
Organization's charter be liberal¬
tain an active principle."
ized.
Now, a perpetual right of
The
British Government has!
veto would be given to each of
long contained an active prin¬
the
"Big
Five"
states.
That
ciple.
The Magna Charta dedi- J would
prevent growth.
We have
cated
it to promote individual'
spoken of giving the Organization
freedom and justice.
"To none
a soul.
We must not confine that
will we sell, to none will we deny,
organization
soul in
delay, right or justice." It was
had over the cen¬
turies been activated by that prin¬
or
that free men
rallied to her side.
March
soul.
a
strait-jacket.
a
Roosevelt
President
because Britain
ciple
j.tfhe Yalta Conference
force to sustain a
1st report to
his
in
the Congress
said:
everywhere
plan is perfect.' What¬
adopted at San Fran¬
cisco will doubtless have to be
"No
is
the group as a whole,
reasonable risk to take.
Five
particular provision can be
But there will be no
delegation of power to an inter¬
national parliament; ;
That is a
The Big
going to require all the
are
other
that
risk.
that
take
to
nations
Unless they take it themselves,
they will not have built a work¬
able structure.
changed.
"Are
then
we
at
end?
dead
a
Certainly not. We are* however,
at a stage where we must begin
at the beginning.
That means
something very elemental."
;
^
"That should riot discourage us,"
he
"We have had
continued.
a
good result from that kind of a
The States which founded
start.
union
present
our
from
were,
their beginning, quite homogene¬
ous.
The peoples spoke the same
language, worshipped the same
God, had much the same habits
and had
large body of
a
common
But the first step that
law.
they
took to prevent war among them¬
selves
by Articles of Con¬
make what they
was,
federation,
called
to
'League, of Friendship.'
a
That
did
not
with
the
power
set
the confederation
distrust
up
organ
any
legislate for
to
as a
whole. The
great that each
State reserved its own sovereignty
so
was
in that respect.
a
That League
the
failure in
was
that it did
sense
the beginning, contain
from
not,
all of the elements needed to solve
all
the
problems of international
and
monetary stability,
finance
with
dealt
colonial
are
where
international
promote
can
Woods.
Bretton
at
There
situations,
supervision
and
autonomy
can
matter
There is the
of limiting the. economic
by those who dare.
burden
of
before victory.
be dealt with
not be
will
Peace
That applies
Equally it applies
Let us hope that at
after victory.
the
Francisco
San
except
won
great
powers
give posterity a good
will dare to
chance.
In
address
another
United
Nations
ington
on
Forum
before the
in Wash¬
March 26, Mr. Dulles
analysed further the Dumbarton
Oaks Proposals, pointing out that
the
"military
contingent" pro¬
vision
"ineffective
was
there is
because
law to which they can
no
prevent exploitation.
basis.
which
armament,
only
can
over-all
on an
There is the matter of pro¬
the revision of treaties
prior international decisions
which may turn out to be unjust
and unnecessarily repressive of
human aspirations.
There is the
task of seeking for men every¬
where religious freedom and edu¬
moting
and
cation and cultural
opportunities.
"Along these lines the World
Organization could do more than
Dumbarton Oaks proposes. Those
Proposals would give the new
Organization much of a mechan¬
istic quality.
Too much it seems
Mahy'do not like the sample of
The American Constitution con¬
be harnessed."
In amplifying this
reality?, which
Yalta produced. tains an active principle. It 'was
statement, Mr. Dulles said:
amended time and again over
Certainly some of the decisions designed
to
"establish justice"
"That is a defect and one which
the years,
."
there taken were very imperfect. and to secure for the founders and
designed to preserve the status
The de¬
But'that is because the collabo¬ their
That was a wise utterance. How¬ ought to be remedied.
quo.
We need an organization
posterity "the blessings of
fect is not, however, as inexcus¬
rators iare themselves imperfect.
which is dynamic, inspired by a
liberty."
The Great American ever, to paraphrase the parable, it
Their defects will not be removed
will be easier for a camel to go able as it might seem, because
purpose to advance the general
by breaking up toe collaboration, j
through the eye of a needle than there is no quick or ready way to welfare.
That
is
needed
not
On the contrary, that would in<,t me"J:"*
and did for an amendment to go through create an adequate body of inter¬ merely because of the intrinsic
tensity the detects. Then each of
as®""f "s our formative the Dumbarton Oaks formula. national law.
*
portunity during
good that can be done. It is needed
"Within a community we can
the great powers would be ac¬
That requires not merely a twoeven
more
because only out of
years.
tuated by fear.
Fear brings out
One way such an
The Soviet
Constitution con¬ thirds vote of the General Assem¬ get law in two ways.
ever
.
.
worst
the
in
No one can
men.
contemplate with satisfaction the
fate of the small nations if the
tains
an
It was
active principle.
designed to abolish "the exploitation of man by man."
That
j
great powers start girding them¬ active principle enabled the So¬
selves -for possible war against
viet Union not merely to survive
each other.
As it is, we have a
but to wax
strong in a world
collaboration which, with all of
which for 24 years was actively
its ^defects, can develop into a
hostile.
constructive and remedial force.
: And
now
Great Britain, the
Concededly also, it can develop
United
States
and the
Soviet
into a destructive force, as did
Union survive as the three great
the Holy Alliance.
But if col¬
powers of the world.
laboration is not kept going, there
Of the organs of the League b£
will
not
be
the
constructive
Nations, there are two outstand¬
[alternative. Destruction will be
ing survivals.
One is the World
assured^
Court, designed to establish jus¬
Our
responsibility is not to tice in the world.
The other is
guarantee what posterity might the
International • Labor
Office
do.
Gur responsibility is to give
designed
to
uplift the condi¬
posterity a chance. That requires
tion
of
human
labor.
Many
us to arrange that the end of the
thought that the .heart of the
war shall not end the actuality of
League; was Article 10, designed,
collaboration between the United
through the Council, to perpet¬
Nations.
To
arrange
that
is,
'
uate
the
territorial.
bly and ratification by a 'majority
of
the
members,
but also the
assent of each of the five "per¬
manent" members.
The five per¬
manent members can
never
be
is
So the result is to give
each of five states, in perpetuity,
tive body or
make that chance
good as pos¬
sible.-"To provide one chance in
five is better than doing nothing.
But to
is
as
provide two chances in five
much better.
The Dumbarton
As'atic
will,
members
after
boundaries
this
of
Proposals
chance.
-
provide
a
fair
But it ought to. be pos¬
sible to improve that chance with¬
out
destroying the going collab¬
oration of the
;;
There
practical
is,
principal Allies.
of
course,
limitation
a
on
severe
changes
principle.
-
and
was
may
used
same
that
formula
in the Covenant of the
Council which had five perma¬
nent
members.
They,
too,
were
given, in perpetuity, the right to
veto
any
amendments
of
the
League Covenant. The difference
between the League Covenant and
the Dumbarton Oaks formula is
a difference in the composition of
10
Council.
recommend the change
o| situations likely to impair the
V:, I
Big .give were the
five leaders of tip then Grand
Alliance.
That
included
Japan
and
Italy.
Now
it
is
the
leaders of the present Grand
five
Al¬
1920, it took only
decade to see that the framers
After
liance.
a
of the League
had guessed wrong.
Perhaps this time we shall prove
better guessers.
But the future
ought not to rest on a gamble that
each
of five
nations will forever
the qualities
possess
which now
entitle them to leadership.
ing, as
that
do,
with
know
will
we
we
a
Start¬
document
have
to
be
ought not to give any
single nation a perpetual right to
veto such change.
changed,
we
it
the
thinks
com¬
of law.
statutory law is ineffec¬
even
mon
way
foundation of
a
com¬
moral judgments.
"Within
the
There
available.
is presently
not
are
enough
common
moral judgments or
ilarities
of
to
sim¬
develop
an
body of common law.
legislating body to
adequate
There
habit
is
no
produce statute law."
"It
>
Dulles
Mr.
Continuing,
marked:
there come
which we
depend for further progress. One
such by-product is a realization
by men everywhere that coopera¬
tion is not a yoke which they must
grudgingly carry.
Rather, it is
an
opportunity to advance their
own welfare as part of the general
welfare.
Another such by-prod¬
uct is the good will and mutual
approach
the
by-products
in
re¬
naturally be
asked why the Dumbarton Oaks
Proposals did not include a pro¬
posal for An international legisla¬
ture, so as to create the body of
might
sential
fellowship
the
if
of
building
Pattern Reappears
the "League pattern
of rigidity reappear?
The reasqn
is simple and fundamental. , In
Why
both
y.
does
cases
the peace
structure is
do
nations
together and
to
are
go
rounded
a
be
the
world
to
on
structure."
Mr. Dulles coricluded by
saying
expect from San
Francisco that kind of success. We
"We
that,
cannot
can
expect more.
emerge
There will
modern, stream-lined
no
instrumentalities
to
guarantee
a
law needed to enable its interna¬
peaceful settlement of interna¬
tional disputes.
Those may come
later.
Until they do come, con¬
flicts of national interests will
tional court and policeman to be
continue
effective.
by, power.
"Such
a
not
fidence
among
sufficient
and
There
bind
and
to permit of
legislative body
laws which
a
enact
the nations.
That is
illustrated by the provision
Dumbarton
con¬
pf.community
sense
to
power
would
trust
the nations
delegating to
the
settled
be
primarily
That places a heavy
project would not at the responsibility upon Great Britain,
present time be practical.
is
to
Oaks
Proposals
of the
with
the
U. S. S. R. and the U.
power
power
unity, they can provide a climate
in
which
can
Five
in
perpetuity,
of
-the
proposes
to keep,
right to veto
amendments voted by"two-thirds
a
Assembly.
I
hope
that
the
institu¬
required for organized peace.
That
opportunity', at best, will be
short.
For,
on
any
order which de¬
individuals rather than
institutions
of the Big
grow
tions
pends
Each
If the three
justly, and in
in the world.
their
use
of the World
Organization.
S. A.,
which in fact posses preponderant
reference to amending the Charter
The League
when
comes
creative
Those by-products are es¬
tasks.
held
can
upon
which
confidence
men
society of nations
neither of those ways
Under the League
the Big Five.
Covenant the
way.
tive without
provided also for
That
League.
a
statutory
But
That is the
Probably there will be a Colonial
Council.
The General Assembly,
too,
the
to veto any amendment
charter of the organiza¬
tion.
reflect an ac-j
There is to be an
Social
the
what
do, to some extent,
tive
cus¬
is
munity needs in the
sought to consecrate.
-•' The Dumbarton Oaks Proposals
Economic
and
way
white
v
Oaks
habits
second
of
j
Article
The
judg¬
laws.
League
have the
war,
which
like
and
toms.
That
way.
moral
common
the power
integrity
the
ments
law'
'common
There is a legisla¬
council which issues
It puts down in black and
changed.
above all, a practical task.
All of
the
members
of
the
proposals for amending Dumbar¬
League.
Article 10 was not a
ton
Oaks, 'however
sound
in
heart—it was a clot in the blood
theory, must be subjected to this
stream of a living world, ^foday
test: Can they be adopted with¬
we
are
fighting to alter-, terri¬
out killing -the hardly won and
torial arrangements whi^h Article
fragile reality of present coopera¬
10 sought to perp^|ua^f9rr ell
tion ?^i
time.
Many : of those jar^angeWe must not, however, be con¬
ments, notably the Japanese Em¬
tent merely because we can give
pire, we now see as quite unjust.
posterity a chance.
We must Scarcely one of the European or
f
the
requires
is
a
precarious order.
on, look¬
Francisco, not as a
stopping point, but as a starting
point."-' v>- -■ ■! ' -■' i r.:; • :-'C:':
Therefore,
ing
to
we
San
must push
•
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4372
.Volume 161
DIVIDEND NOTICES
w
V
Recommendations and Literature
&
has declared the
quarterly dividend of One Dol¬
The Board of Directors
regular
■
i
Co., 10 Post Office Square, Bos-
y*\ vi
ton
/t m
rnv-■ "(
•*\
*
9, Mass.
Cumulative Preferred Stockf
4J4%-Series, and a dividend of fifteen
cents (15c) per share on Common Stock,
both payable June 1, 1945, to holders
of record at the close of business May 3,
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per share on
Chicago, Milwaukee, St. Paul &
Pacific
Railroad—Complete
bitrage
&
proposition—Sutro
Co.,
ar¬
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120 Broadway, New York
Cross
March 22, 1945
alysis
this
ntlllltl!lllllll1l!lllllllllllll!l||||l1llllll!l!llll!lllll!!ll!ll!l!llf!!llllllll!!!ll!lllll!llllllllilinintm
for considering
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H.
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&
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available
Mallory
Co.,
&
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New York
Inc.,
30 Rockefeller Plaza'
board
No.
Mohawk
Pub.—Special
Co.,
for re¬
turn''and
appreciation—Ward &
Co., 120 Broadway, New York 5,
Y.
has
declared
day
Company—Descrip¬
Liberty Street, New
Co.—Review
Harvester
Walnut
1529
Street, Philadelphia 2, Pa.
Company
per share
$1.50
on
been declared for payment May
1, 1945, to the stockholders of record at the
close of business April 6, 1945.
have
Company
discussing this stock as an attrac¬
tive low-priced dividend payer—
Hughes & Treat, 40 Wall Street,
New York 5, N. Y.
B.
M.
Fashion
Park,
Inc.
—
Post-war
street, New York 4, N. Y.
Foundation
the Board
of Directors on Mar. 14, 1945, lor the
first quarter of the year 1945, equal
to 2% of its par value, will be paid
upon the Common Capital Stock of
this Company by check on Apr. 16,
1945, to shareholders of record at the
dose of business on Mar. 30, 1945.
A cash dividend declared by
;
#
M
Central
i e;
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Pfd.;
E. J. Beckett,
San
Company—Discus¬
Corp.;
Dye Works;
S. F.
Bowser; Detroit Harvester; Bos¬
&
Rock
Maine;
Buda
&
Welding;
Gleaner
Harvester;
Liberty Aircraft Products; Lamson
-
Sessions;
Spinning,
-
Berkshire
Bowser,
Fine
Inc.;
in
lory.
National
Bond
Monthly
Stock and
Service — Free
Quotation
trial offer being made by National
re¬
quarterly
the
if
on
Company
has
business April 5,
dose of
M.
GAS
UNITED
Common
1945.
Treasurer.
SCHILLER,
Corporation—Brochure
Co., 208 South La Salle Street,
payment April 30, 1945 to stock¬
holders of record at the close of business on
April 10, 1945.*
*
Attention
is
called to the fact that scrip
certificates for
fractional shares of Common
Stock do not entitle the holder to this divi¬
dend unless combined with other scrip certifi¬
cates into full shares of such stock before the
close of business April 10, 1945.
H. F. SANDERS, Secretary
clared
William Street, New
A
,
VANADIUM CORPORATION
OF AMERICA
Lexington Avenue, New
420
randum—Buckley
o
26,
1945.
of the Board of Directors
dividend of twenty-five cents
meeting
a
today,
a
declared, payable April 12, 1945,
stockholders of record at 3:00 o'clock p. m.,
share
.pril
5,
1945.
Gas
&
Oxford Paper preferred ^ com¬
Cor¬
poration,
New
York
mon
—
body
Analytical
GoodCo., 115 Broadway, New
&
study
Pine
70
Coca-Cola—Discussion
Panama
of
this
situation—Iloit,
Troster,
York
74 Trinity
6, N. Y.
Rose
&
New
Place,
Street,
5, N. Y.
70 Pine
Street, New York 5, N. Y.
Public
National
Bank
Trust
&
Company—Analysis, for dealers
only—C. E. Unterberg & Co., 61
to
The
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KANSAS CITY,
Lindgren
have
and
become
Slayton
&
Fourth
Street,
Mastin
MO.—Axel W.
John
J.
Interstate Aircraft & Engine Co.
Broad
Co.,
&
25
Street, New York 4, N. Y.
general
—
Reuss,
York
Wall
One
on
4s-4y2s-5s,
Baird
&
consol.
McLaughlin,
New
Street,
5, N. Y*
Lincoln
randum
Park,
Mich.—Memo¬
refunding
on
Francisco
bonds—
Ballman & Main, 105 West Adams
Rail¬
Co. and Chicago, Milwaukee,
St. Paul & Pacific RR. Co.—Arbi¬
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trage letters—Vilas
Lehigh Valley RR.—Circular
the
Louis-San
St.
Wall
& Ilickey, 49
Street, New York 5, N. Y.
Inc.,
Co.,
St.
previously with
Kirk Investment
was
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;
Mr.
with Barrett Herrick
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stopped out of
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You
Long Bell Lumber
discussing
outlook
and
bilities—Comstock
South La Salle
were
was
bought at >28.
stopped out at'29V&.
There
too
are
of
many
sudden
a
at
26.
last
Stop at 28
was taken
Result:
Gross
week.
-
Company-
enviable
post¬
possi¬
earnings
&
Co.,
231
Street, Chicago 4,
Pub.
Inc.—Descrip¬
tive circular—C. E. de
Willers
&
120 Broadway, N§w York 5,
Y.
articles they
have
been running in the Chroniclewrite to Mark Merit, in care of
Schenley
Distillers
Corporation.
350
Fifth
Avenue,
New
York
1.
N.Y.
still
You
connected
become
has
Bronson
Building,
Dane,
Stock
Bronson
Mr.
of
head
was
Bronson & Scranton,
is
Company—Brochure
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1
follow¬
the
Inc., in New
Orleans.
over
But
have
if you want profits you
to take your chances
one
(Special
to
The
without the other.:/
'
■
•'■
/'
'
Chronicle)
More next
MO—James O.
become affiliated with
Herrick, Waddell & Co., Inc., 1012
Baltimore Avenue.
Mr. Wilson
was
formerly with John
his
own
J. Seerley
in the past conducted
business in
& Co., and
investment
•
*
KANSAS CITY,
Wilson has
V'-
•
*
.•
Financial
All-Florida
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'is
■
:
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*
:v
Court
York—L.
II.
on
May 15 in New
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Struthers
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-
on
Wells Corporation—
interesting post-war
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Also available are current bul¬
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South
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•
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Bend
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Current
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And other Exchanges
N. Y.
New York 5, N. Y.
York
Commodity
New
way,
v"
expressed in : this
necessarily at any
time coincide with those of the
Chronicle.
They are presented as
those of the author only.1 -ictU
[The
article
Texas & Mexico issues,
Louis
and
San
Francisco,
Co., 52
Street, New York 5, N. Y.
Seaboard
i'>•
v-
■
—Walter
Recent
developments in the case, with the
imminence of the appeal sched¬
uled to appear before the Fifth
Circuit
-have
You can't
losses.
with
Wilson Now With
get stopped
you may
out of all of them with losses.
the
In
Exchange.
—Analytical
Magnavox
hold
Before the end of this week
Canal Bank
members of the New
John
Co.,
Broadway, New York 5, N. Y.
and statistical
,f
.
—Brochure of
Wall
Macfadden
N.
nuriiber of
a
Gross profit was IV2 points.
thing isn't true of the Baldwin Locomotive
c^ame in
New York.
111.
Co.,
>
y o u ; were
American Steel
stocks.
Manufacturing Company.
Street, Chicago 3, 111.
with
Ill North
Louis,
Mo.
week
Schenley Distillers Corporation
Mastin
associated
Mr. Lindgren was
H. R.
Chronicle)
i
Last
ing, most of which came in on /
change.
Monday's break. Hudson
Motors at 18, stop 16. Joiies &
John W. Bronson Is Now
Laughlin 29; stop 27. Phelps
Associated With John Dane Dodge 27; stop 25, and U. S. '
NEW ORLEANS, LA.—John W. Rubber 56 with a
stop at 53?
and
Broadway, New York 6, N. Y.
—Circular—Ilirsch
Memo
(Special
money
Orleans,
war
Slayton Co. Adds Two
you
much
Des Moines, Iowa.
Pittsburgh Railways — Current
study—First Colony Corporation,
Seaboard
Secretary.
BRAND,
O.
3get
twice.
—
Chemical—Late
be mailed.
Checks will
same
Herrick Waddell
was
B.
&
1529
Brothers,
Street, Philadelphia 2, Pa.
York, N. Y.
March
At
Street, New York 4, N. Y.
common—Memo¬
Gruen Watch
2003
eld
on post-war out¬
offering attractive possibili¬
ties—II. Hentz & Co., 60 Beaver
for
,
er
York 5, N. Y.
memorandum—First Colony
Stock Dividend
a
& St. Louis
Co.—Memo
RR.
Law,
stock—Circular—
preferred
Walnut
6, N. Y.
York 6, N, Y;
Frank-Guenther
Albert
Indiana
CORPORATION
meeting of the Board of Directors of
United Gas Corporation held March 28, 1945 a
dividend of fifteen cents
(15c) per share on
the Common Stock of the Corporation was de¬
At
Co.—Anal¬
Radiator
New York, Chicago
able to dealers—Fred W. Fairman
at the
1945 to stockholders of record
April 16,
the
discount
look
George R. Cooley & Co., Inc., 52
declared
been
comparatively
Theory is that markets
not
past
Street, New York City.
Garrett
cents
stock
payable
put into effect the
are
Orleans
.
the outstanding
all
National
and statistical information, avail¬
twenty-five
of
dividend
share
per
ments
York
5, N. Y.
,
COMPANY
keep
Reserve require¬
new
with
Inc.,
A
if,
ysis, for dealers only—C. E. Unterberg & Co., 61 Broadway, New
..
Dividend No. 159
(25c)
and
construction, domestic reconver¬
sion, and public works develop¬
ment—Riter & Co., 40 Wall Street,
Chicago 4, 111.
rHE SUPERHEATER
or
out at the top. But they'll
you
Co., 70 Wall Street, New York
City, in their trading department.
Mr. O'Leary was formerly a mem¬
ber of the New York Curb Ex¬
New
Quotation Bureau, Inc., 46 Front
&
the "• ups
won't^get
They
in at the bottom
you
-
Deep
Machine
Federal
Oil;
Co.;
Street, New York 4, N. Y.
construction company
the post-war era of European
41 Broad
Treasurer
of
most
downs.
for the market to con¬ profit 2 points. Crucible was
one and the same time.
acquired at 38. It was sfopped
at
42.
Gross profit -was 'A
points.
,
' *
;
Against these you bought
Goodrich at 57V2 with a stop
Edgar J. O'Leary has become of 56. Stop was taken, so you
associated with C, A. Alberts & had a loss of IV2
points.;' u-
heavy
Company—Circular
—Seligman Lubetkin & Co., Inc.,
Francisco, California
a
and
that when, as
are
ramifications
Purolator;
Southeastern
United Piece
Foundation
The Transfer Books will not be dosed.
one
day, or one
week, prices act fine; the next
sions.
the chances
New York
Common Stock Dividend ^o. 117
there isn't. So
from losihg too
and may even
give you some to spend/on
something else than commis¬
would draw blood. But
feelers
war.
sion of attractive outlook for this
DIVIDEND NOTICE
of these the
any
market would reflect it. But
market you saw a decline. At
that time I said that these
Same
outlook—Simons, Linburn & Co.,
25 Broad
BETSCH, Asst. Treasurer.
PACIFIC GAS AND ELECTRIC CO.
of
change in margin rules hit the
news
Jersey Worsted, and P. R. Mal¬
the $6 Preferred Stock and $1.25
the $5 Preferred Stock of the
on
share
per
of
is
when the
statements
various
$2
Sons; Riley Stoker; Alabama
ton
Electronic Co. Common—Report
dividends
Light
any una¬
sider at
Eastern Corporation Common—
$6 and $5aPreferred Stock Dividends H
various
see
nimity about
think
to
was
Oaks,
and
peace
Circular—Buckley Brothers,
Secretary
I
A few weeks ago
Douglas Shoe; Hartford-Empire;
March 28, 1945
quarterly
&
Francisco
of
Maine
Checks will be mailed.
a
they
Broadway, New York 5, N. Y.
120
gets
predeter¬
Yalta
things. I'll venture to say that
they act the opposite. > ;
: •
I won't get anybody to agree
Yet stops apparently; take
on
what these things are or
care
Mills, Inc.; American Hardware;
share.
regular
&
above
level
mined
Co.,
of the situation—Reynolds &
Extra cash dividend of 50? per
The
Power
Motors; Scovill Mfg.; Bird
way
Detroit
certain stock
a
or
little.
Corp.; Electrolux; Brock-
navox
5, N. Y.
under
do
preferred; Majestic Radio; Mag¬
April 16, 1945:
Electric Bond and Share
"A";
Co., Inc., 55
Regular semi-annual cash divi¬
dend of 50tf per share; and
E. E. DuVall,
Laboratories
Great American Industries; Mas¬
sachusetts
York
(Continued from page 1376)
market will do
tive circular—Ilerrick, Waddell &
the
holders of record at the close of
business
late
are
on:
Mont
Du
A. De Pinna;
fol¬
lowing dividends on the capital
stock of the Company, payable
on
May 15,
1945, to stock¬
this
memoranda
Broadway, New York 6, N. Y.
available
Also
N.
3
Discus¬
—
San
now
mean.
But that
what makes stock markets.
Co.
Woods,
about. If there
what
Rubber
research study—Goodbody &
directors
of
Street,
Chapman
&
Scott—
of company's post-war
prospects and reasons for consid¬
ering outlook of interest—Hirsch
&
Co.,
25
Broad
Street, New
York 4, N. Y.
115
Dividend
Broad
25
4, N. Y.
sion of attractive prospects
Collier
Crowell
New York 20, N. Y.
ie
Steiner,
—
Analysis
and New
Bedford Rayon.
COMPANY
Th,
Inc.—
Co.,
&
discussion
memoranda
are
Liquidometer Corp.
on
GAS
reasons
Broadway, New York 6, N. Y.
Also
v
Stock—An¬
Co. Common
ation—F.
Ill
NATURAL
R.
Merritt,
Secretary
CONSOLIDATED
P.
Analytical
5, N. Y.
Edwin 0. Wack
•"
& Co., 208 South La Salle Street,
A
tit
Chicago 4, 111.
($1.1214)
lar and twelve and a half cents
Dumbarton
is
Bretton
Savs
When
(Continued from page 1374)
;
There
Tomorrow's Markets
Walter Whyte
Dealer-Broker Investment
BUTLER BROTHERS
t
1397
CHICAGO
•.
<'■'
Bldg.
YO£K 4, N. Y.
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
will be purchased
shares
NEW FILINGS
statements
days
the underwriters
are Kidder, Peabody & Co., Goldman, Sachs
& Co., Lehman Brothers, The First Boston
Corp.> Ball, Burge & Kraus and the First
Cleveland Corp.
Lehman Brothers, First
Boston Corp. and First Cleveland Corp. are
named
underwriters
of
preferred stock
Underwriters—Among
whose
registration
filed less than -twenty
were
to dates
according
grouped
ago,
statements will
In normal course become effective, un¬
less accelerated at the discretion of the
registration
which
en
sec.
and sold to the public.
ers
Issues
of
List
amendment. ' Unsubscribed
by the underwrit
by
filed
share, on qr before Dec.
31, 1948.
Employees will receive such war¬
rants
for
each five shares of
common
stock purchased.
Proceeds—The company will apply pro¬
ceeds for general corporate purposes.
Underwriters — Floyd
D.
Cerf
Co.
is
named principal underwriter.
Registration Statement No. 2-5640. Form
stock,
:y
$5
at
THURSDAY, MARCII 29
March 10 filed a
registration statement for $26,089,000 first
mortgage bonds due April 1, 1975.
Interest
rate will be filed by amendment.
LIGHT CO. on
March 16 filed a registration statement for
156,158 shares of $5 preferred stock (no
issue of March
Details—See
Offering—The offering price
15.
rule.
& REFINING, LTD.,
registration statement
MINING
NEWCOR
March 10 filed a
on
stock without
shares of common
for 500,000
par value.
Details—See
share.
15.
of March
issue
public is $1 per
the
to
Offering—Price
.
is named
Co.
&
Underwriters —Telller
principal underwriter.
March 10 filed a
registration' statement for 75,000 shares of
$4 cumulative preferred stock (no par).
CO.
FLINTKOTE
on
Underwriters
—
■
ment.
their shares for new
basis.
The
offering will expire April 20, 1945.
Com¬
pany is offering to the holders of common
stock the right to purchase at $105 per
share any of the shares hot required to be
issued in connection with the exchange
offer, the offering rights to expire May 25.
Any unexchanged or unsubscribed shares
■will be sold "by the underwriters to the pub¬
on
for share
share
a
Courts & Co.; Robinson-Humphrey
Wyatt, Neal & Waggoner and John¬
all of Atlanta,
and Garber,
Inc., of Birmingham.
Lane, Space & Co., Inc.,
and Sterne,
Agee & Leach
son,
Cook & Hulsey,
ACCEPTANCE CORP. on
registration statement for
50,000 shares of 5% cumulative preferred
Stock, Series A, $25 par.
Details—See issue of March 15,
Offering—The offering price to the pub¬
lic is $25.75 per share.
Underwriters — Cruttenden & Co., ChrSECURITIES
March 12 filed a
First Trust Co. of Lincoln, Neb.,
cago, and
SOUTHWESTERN INVESTMENT CO. on
12 filed
a
registration statement
March
stock,
preferred
shares
12,500
con¬
no
par,
non-participating with
dividend rights of $1 per share
vertible,
and 60,000 shares of common,
par.
Of the latter 20,000 shares is to
reserved
to meet
conversion require¬
per annum,
be
stock on a share for share
$1 preferred stock.
Any of
the $1
preferred not issued in exchange
will be offered to the public at $20-per
share.
Corporation also is offering 11,822
unissued
but
$12.50 per share.
Underwriters—None
UNIVIS
LENS
shares of common
CO.
Offering—The offering price to the pub¬
will be filed by amendment.
Underwriters—The issue will be offered
for sale under the Commission's competi¬
bidding rule and the names of the un¬
derwriters will be filed by amendment.
12
filed
a
30,702 shares
issued and being sold by
are
stockholders,
issue
Details—See
of
March
Cal.
Business—Manufacturer of food cleaning
packing machinery.
Offering—The new common stock will be
offered to common stockholders of record
and
The price of the of¬
amendment.
Un¬
expire on April 18.
fering will be filed
shares
subscribed
by
will
Underwriters
Allen
—
&•
is
Co.
HUB,
March
Following the
offering the company proposes to declare
filed by amendment.
stock
a
to
dividend
total
25%
of
stock
common
a
the
stock
common
shares
are
issue
of
company
22.
(3-17-45).
A-2
Allen
&
Co.,
be
filed
by
TIRE
GENERAL
March 15 filed
shares
&
RUBBER
CO.
OAK
19
par
$5.
.registration
a
000.000
ten
issue
total
Offering—A
being
of
March
of
22.
being
5%
year
65,000
are
chare
shares
of
share, for 4!/2%
for
stock;
the remaining 10,000 shares
unexchanged shares will be pur¬
chased by underwriters and offered to pub¬
a
price
officers
The
to
87,857
22,000 shares
and
for
filed
being
employees
remaining
offered
be
65,857
by
amendment.
shares
common
are
CO.
Offering—The offering price of the
sold
by
special meeting of stockholders
will be held April 3 to vote on a proposed
issue
The progrom
provides for the authorization of
100,000 shares of
preferred stock ($100
par) and 3,000,000 shares of common (par
$5).
The-Jpreferred to be authorized in¬
cludes the 50,000 shares registered.
The
present' common stock, of which 658,877
shares ($10 par), are outstanding, will be
split on a four-for-one basis so that 2,635,508 of the $5 par will be outstanding.
registered,
offered to
certain
$10
per
share.
shares
are
being
at
the rate of
one ph&re for eight shares held, to holders
of outstanding common stock at a price to
subscription,
March
for
fund
in connection with
of modernizing and expanding
manufacturing facilities and plants or for
a
stock
$10
principal
of others
$1,-
to
be
filed
by
for
at
is
Co.,
with
Details—See
Issue
a
GAS
mortgage
A.
Inc.;
Allyn
&
&
Co.,
of
and
&
Coffin
Co.,
Harold E.
Co.;
Trust Co.
Cole
Lincoln,
Cen¬
are
&
Burr,
Inc.; .Kebbon,
Wood &.po.;
Beecroft,
Neb.;
a
A
share,
sold
with
A
Of
Address—28 West 23rd
N.
stock
common
the
total
pur¬
530,500
outstanding
and
certain stockholders.
are
a
are
being
Street, New York,
—■ ■;■■■
Y.
INC.,
LABORATORIES,
Inc.)
registration statement for 550,shares
of
30-cent
cumulative
con¬
a
preference stock
vertible
($4 pan.
Address—62 West 47th Street, New York
.
subsidiaries are presently engaged in
production with combined sales of over
ing
war
in 1944, with a larger volume
anticipated for 1945.
Peacetime
$25,000,000
sales
of
consists of electronic devices,
radio and communications
and
transformers
equipment,
approximately three-fifths of the net pro¬
ceeds received from sale of
stock to its own
present deficiency in the company's
working capital position, its current liabil¬
having exceeded its current assets by
over
$1,000,000 at Dec. 31,
1944, and a
similar
deficiency
of
Hudson
American
at
which
Dec.
31,
Hudson
amounted to nearly $500,000
The proposed advance
1944.
American according to the com¬
rest
dends
price
account
of
the
company,
to be offered to employees at a
$4.25 per share.
Share not sub¬
of
scribed
of
shares
the
of
public offering.
common
stock
For every
ten
bought, purchas¬
First
—
to
Registration Statement No. 2-5648. Form
(3-26-45).
A-2.
statement
tration
a regis¬
beneficial
COX FUND has filed
A-
DODGE
shares.
25,000
for
,
•
,
Mills
Address—1708
"I
...
Business—Investment
company.
&
Underwriters—Dodge
Cox
market.
Offering—At
investment.
Proceeds—For
Registration Statement No. 2-5649. Form K
(3-26-45).
•
i
filed
shares
Weeks & Stubbs,
ing,
Registration Statement No. 2-5645. Form
A-2.
(3-23-45).
.
CO.
filed
has
registration
a
sinking fund
statement for $10,600,000 5%
due April 1,
debentures,
shares
of
lanta,
(no
par).
Washington
Street,
At¬
.
Ga,
communities
Georgia, Virginia,
ice
of
States
the
in
located
of
sale
and
Business—Manufacture
in
and 275,000
1980,
stock
common
North Carolina, Tennes¬
Florida, South Carolina and Alabama.
see,
reorganization and re¬
capitalization plan company is offering to
the holders of outstanding 6%
and 7 >/2 %•
cumulative
preferred stocks the privilege
of exchanging their shares on the basis of
$100 par value of stock for $100 par value
of
5%
and
debentures
stock,
mon
and
share
one
of
Class
of
A
exchanging
stock.
mon
The
6%
pre¬
Class A stock offering their
ferred and 6%
stock
the
of
holders
exchange shall receive dividends
for
at the same rate of
dividends
the stock on Jan. 1,
1945, but shall receive no dividends there¬
after, the debentures bearing interest from
such date.
Any debentures not issued in
exchange for stock shall then be offered to
holders
of
presently
outstanding
first
mortgage 5% sinking fund bonds on the
basis of $100 par of debentures plus an
April
on
not
1945,
paid on
1,
to
amount
determined
be
the company
by
of
York City.
are
All of the
103.
callable at
ap¬
;
under a stock purchase
1, 1945, at $20 per share. ®
The last
previous offering of shares to
employes was under a plan dated April 1,
1040.
The present plan is designed to per-"
mit employes and officers who have joined
the company since Jan. 1, 1940, to become
stockholders, and to permit those who are'
eligible to exercise additional subscription
employes
to
plan dated May
rights.
Proceeds—Proceeds will be added to gen¬
tion
the
of
funds
eral
the
part of
and
company,
the acquisi¬
proceeds may be used for
of property.
Underwriters—None named.
Registration Statement No. 2-5650. Form
(3-26-45)
S-2.
GRAYBAR
.*
under
of
and
INC.—W. J.
CO.,
Nicoll, E. W. Shepard, G. F.
T. Marchmont as trustees
G.
trust agreement dated as
1938, have filed a registration
voting trust certificates for
voting
a
15,
July
for
statement
(par $20)
shares of common stock
Electric Co., Inc.
57,937
of
ELECTRIC
A..H.
Drury,
Hessler
Graybar
of
Address—Address
420
company,
Lex¬
New York City.
ington Avenue,
above.
Business—See
above.'
registration of additional
certificates was filed in con¬
with the proposed offering by the
Offering—See
Purpose—The
trust
voting
nection
of 57,937 shares of additional
share under a
purchase plan dated May 1, 1945.
:
company
stock to employes at $20 per
stock
exceeding $3 in cash for each $100 par
The 5% sinking
bonds
electrical
of
Business—Distribution
paratus and supplies.
Offering—The company is 100% employe
owned.
The 57,937 shares are to be of-
named.
Underwriters—None
value of bonds exchanged.
fund
has
a
com¬
preference stock the privilege
their shares on the basis
of $50 par value of stock for $50 par value
of 5 % debentures and two shares of com¬
6%
INC.,
CO.,
registration statement for 57,937
capital stock (par $20). r
Address—420
Lexington
Avenue,
New j
holders of outstanding
to
ELECTRIC
GRAYBAR
fered
ATLANTIC
named
are
trust managers.
as
& Co.; Rauscher,
Robinson-Humphrey Co.;
George V. Rotan Co.; Starkweather & Co.;
G. H.
Walker & Co.; Chas. B. White &
Co.; White, Hattier & Sanford and Whit¬
Co.;
J:
Fran¬
San
Tower,
cisco, Calif.
Son;
#
is
Corp.
Boston
principal underwriter, with, names of
be filed by amendment.
others
Cock & Co.; E. M. Newton
Registration Statement No. 2-5651. Form
(3-26-45).
F-l.
bonds not
all of the
first
mortgage 3%
serial bonds shall be
called for redemption.
The company con¬
templated that about June 1, 1945, it will
issue not exceeding
$3,400,000 3% notes
and use the proceeds either for the pur¬
pose
of calling all 3%
serial bonds and
the outstanding unexchanged 5%
sinking
,
outstanding 5%
sinking fund
exchanged for* debentures and
fund
bonds
or
reimburse
to
the
company
OF OFFERING
DAVES
UNDETERMINED
We
below
present
a
of laeaes
filed
but whose
been deter*
list
whose registration statements were
days
twenty
mined
or
or
more
have
dates
offering
that purpose.
at not less than par plus accrued in¬
In the opinion of the management
sale will be made,
as
it is 'be¬
terest.
such
no
lieved
substantially
will be exchanged
stocks
ago,
not
to
nnknown
are
us.
all
the
of
debentures
either for the company's
bonds.
or
exchange
an
de¬
of
preferred
ferred
Class
and
Class
or
A
under
debentures
plan
not
Any pre¬
exchanged for
shall
for
called
be
&
Atlanta,
is
underwriter.
Registration Statement
A-2.
pany's
is
prospectus
on
its
own
stock.
Underwriters—H.
M.
Byllesby
&
Co.,
Nft. 2-5646.
Form
Feb.
for $3,-
deben¬
fund
200,000 shares of common stock.
registered
outstanding
and
Detaiis—See
at
132,000 shares are
and being sold by
issue
of March
8.
,
Offering—The debentures will be offered
100 and the common stock at $8.50 per
share
heads
the
names
Co.,
statement
sinking
Alstyne.
Underwriters—Van
Underwriter—Courts
as
15-yepr
stockholders.
redemption.
names
registration
stock
the
Of
stock.
A
stock
a
5%
and
tures
issued
effect
Purpose—To
filed
000,000
CO. on
ENGINEERING
AMERICAN
27
bentures and common stock for outstanding
of
underwriting
/
ment.
Noel & Co.
with the
by amend¬
group,
to be supplied
others
■>
(3-23-45).
A.
ELECTRIC
VIRGINIA
has filed
a
CO.
POWER
&
registration statement for $33,-
P.
filed
27
000,000
PRODUCTS
W.
CO.,
INC.
on
Jan.
statement for $2,first mortgage sinking
40,000 shares of capital -
registration
a
20-year 5%
000.000 first and refunding mortgage bonds
fund
bonds,,
Series E due March
stock
(par$5).
1, 1975.
and
Details—See issue of Feb.
of
Amount
creased
Increased—In
Offering
March
filed
amount
be
to
26
company
offered
to
an
in¬
$59,-
The interest rate will be filed by
amendment.
Franklin
&
Streets,
Rich¬
mond, Va.
bonds
and
filed
by
sale
underwriters
will
be
sold
at
the names ofr the
amendment. "
• ;
Offering-—The offering price to the pub¬
lic will be filed by amendment.
together with
will be. used
refunding
mortgage bonds, Series B, 3V2s, due Sept.
1, 1968; $3,000,000 of Series C 3V8S due
Proceeds—The
to
funds
redeem
as
tendering their bonds for redemp¬
of April 1, 1945 atT02Vfe and in¬
terests or, in the alternative, to assent to an
1965
utility.
Underwriters—The
competitive
other
lege of
extension
Business—Public
of
proceeds,
the
company,
$37,500,000
first
and
i 1971 and $23,000,000 series D 3s, due 1974.
Registration Statement No. 2-5647. Form
S-l. (3-23-45). „ l\ . _
1, 1945.
Offering—Holders
of
outstanding $2,20-year 6% first mortgage sinking
fund bonds due 1948 are jgiven the privi¬
000,000
tion
Address—7th
ities
for by employees will be sold to the
public through underwriters along with the
the
&
Underwriters
named
Folger, Nolan, Inc.; J. J. B.
Johnson, Lane, Space &
Co.;
due June 1,
serial notes
of 2l/2%
1945-1952.
Pierce
the
for the purpose of
giving that subsidiary a net working capital
of
$500,000,
thus permitting
it to pay
dividends up to 50%
of its net earnings
in
any
fiscal year, on its stock held by
Reeves-Ely and of freeing the latter from
the
prohibition against payment of divi-
for
debentures
S-5.
electrical
appliances.
Offering—The offering price to the pub¬
lic will be filed by amendment.
Proceeds—The company intends to add
Offering—The initial offering price is $5
per share.
Of the 133,000 shares being
are
1,
fund
Inc.; McClung & Knickerbocker, Inc.;
Mosle
and
Moreland, Inc.; Nashville Se¬
curities CO.; Neuhaus & Co.; Newhard,
Co.,
frequency
to
20,000
June
$1,400,000
and
debentures not taken in exchange for
stocks or bonds may be sold by the com¬
still and motion picture cameras, etc.
offered
&
Hilliard
for funds previously used for
(formerly Reeves Sound Laboratories,
has filed
Corp.
Business—Manufacture of popular-priced
3%
Dick¬
&
man
1945, of $3,600,000 of-
about
sinking
or
on
& Co.; Courts & Co.;
& Co.; Oscar Burnett
capital of over $1,400,000 and to eliminate
663,500
and
by
Blodget, Inc.;
Dean Witter & Co.; Dominick & Dominick;
Equitable Securities Corp.; Alex. Brown &
Sons;
Stern
Brothers & Co.; Wisconsin
Co.; Lovett Abercrombie & Co.; Auchincloss, Parker & Redpath; Bacon, Whipple
stock, par value one cent
for
3V2%
and
Webster
&
C00,CO0.
Class
warrants.
Paine, Webber, Jackson & Cur¬
Co.;
Stone
financing will be to give the company and
its
subsidiaries consolidated
net working
statement
common
&
tis;
shares
Co.,
&
Weeks; Kidder,
Lehman Brothers; Drexel
& Co.; Hemphill, Noyes & Co.; W. E. HutCo,;
amendment
Pierce
UNIVERSAL CAMERA CORP. has filed
Class
of
redemption
ing
Dodge & Co.; First Boston Corp.; Goldman,
working capital and to advance the balance
as
working capital to its subsidiary, Hud¬
son
American
Corp,
The effect of the
Rauscher,
YY>vYY
registration
Inc.
household
Co.,
C.
Co.,
names
WEDNESDAY, APRIL 11
production
Offering—Price to the public will be filed
First
&
with
(3-22-45).
high
22.
by amendment.
Republic
Co.,
City.
Business—Company and its manufactur¬
series due April
March
of
Ripley
filed by amendment.
the
Any
names
registration
first
&
Freres
be
expected to be obtained, / to
of $4,500,000 of outstand¬
sinking fund debentures, due
Sept; 1, 1957, and $1,000,000 of 2%% serial
notes due 1945-47.
The company has en¬
tered into contracts for the private sale
funds
other
due
&
to ap¬
Series A, requiring $3,227,730 ex¬
of
accrued
dividends,
and
with
clusive
&
Peabody
expects
company
1945, at $110 per share of the outstanding
and
participating
preferred
stock,
Barney
Sachs & Co.; Hornblower <fc
and
cumulative
1960,
pany
NATURAL
$4,484,000
Harriman
by
to
REEVES-ELY
de¬
the
amendment.
NEBRASKA
-
purposes.
Registration Statement No. 2-5643. Form
A-2.
000
&
corporate
others
22.
Davis
H.
expenditures
Lazard
and
deben¬
share.
per
underwriter,
sinking fund bonds, 3%%
1, 1965.
Inc.;
for
program
outstanding and
March
of
avail¬
Proceeds—The net proceeds will be
Underwriters—The underwriting group is
offering price of the
public is 100 and of
the
to
common
A
change in the capital structure.
stockholders.
certain
Offering—The
bentures
and
pre¬
amend¬
ferred and common will be filed by
ment.
headed
on
statement
sinking
issued
are
Details—See
issued
offered in exchange,
cumulative pre¬
preferred
the
San
1955, and 350,000 shares
stock, par $1.
Of the stock, 300,-
000 shares
chase
Details—See
at
The dividend rate on the
preferred stock will be filed by amendment.
The common shares are to be sold for the
account of certain stockholders.
Address—Corning, N. Y.
Business—Manufacture of glass products.
other
MANUFACTURING
filed
on
registration statement for
4'/4% cumulative preferred
Btock, par $100 and 87,857 shares of com¬
lic
in
filed
Originally
Inc.'::
a
a
(par $5).
shares
able
SATURDAY, APRIL 7
McCormick
amendment.
filed
has
registration statement for 50,000 shares of
cumulative preferred stock (par $100), and
an
indeterminate
number
of
common
Co.
&
Francisco.
tral
principal underwriter
with names of others to
Is
Of
Peabody
Underwriters—The underwriters
March
Underwriters—The
any
668,810
Registration Statement No. 2-5637. Form
(par
being
lic will be filed by amendment.
and
to
proceeds of the offering
plans to retire $3,700,000 of
3% sinking fund debentures, due December,
1945 to 1956 and for working capital.
stockholders.
Offering—The offering price to the pub¬
ferred
bring
will
.stock' then- outstanding
Proceeds—From
statement
C. LYTTON & CO.
registration statement
total 30,000
Details—See
mon,
which
CO., INC., on March 19 filed
shares of
the
Of
offered by certain
*75,000
stock
in common
holders
shares.
KANSAS
HENRY
filed
15
130,000
$1).
under¬
named
TUESDAY, APRIL 3
for
to
sold
be
to the public at a price
writers for offering
per share.
principal underwriter,
WORKS
l(j
••
April 6 in the ratio of one share for each
shares held.
Subscription warrants
four
named
Offering—The price to the public is $6.50
GLASS
CORNING
MACHINERY CORPORATION has
registration statement for 107,010
shares of common stock (par $10).
Underwriters—Paul
22.
TUESDAY, APRIL
Proceeds—The
FennCr & Beane; Smith,
Co.; Blyth & Co., Inc.; Clark,
Inc.;
textiles
of
ply the net proceeds from the sale of pre¬
ferred stock to the redemption on June 1,
Ripley
Co.,
Mass.
surgical dressings.
Offering—The offering price to the pub¬
lic will be filed by amendment.
Pierce,
&
7
stock. Series A (no par).
Business—Manufacturer
Harriman
Offering—Under
a
Address—San Jose,
named by amend¬
(3-21-45).
.
FOOD
Sachs & Co,,
principal under¬
Registration Statement No. 2-5642. Form
A-2.
& Co.;
Merrill
Stanley
Morgan
14
registration
a
40.000 shares of $4.50 cumu-,
Address—Walpole,
Lynch,
Address—106
ment.
tive
filed
are
writers, with others to be
lic
common
March
on
Lehman Brothers
and
tures due April 1,
named.
registration; statement for 42,702 common
shares, (par 50 cents).
Of the total 12,000
shares are being sold by the company and
THE
]
•
$4,060,600.
Underwriters—Goldman,
the
for
authorized
on
22.
and Mitchum Tully & Co.
15.
change /their
at
general corporate purposes.
In due course,
the company intends to effect the retire¬
ment, without premium, of indebtedness of
the company and subsidiaries aggregating
March
filed by
be
March
of
Underwriters—Kidder,
Offering—Holders of the $1.20 preferred
stock have been given the option to ex¬
basis
will
rate
issue
Details—See
ments of thfc preferred.
Details—See issue of March
-
LIGHT CO. On
for
&
Angeles.
Offering—The Initial offering price to
the public will be filed by amendment.
Proceeds—The proceeds will be used for
amendment.
cumulative
no
POWER
Interest
1975.
1,
to be
25,000 shares each.
for
Los
17 filed a registration statement
March
Evans & Co.,
Underwriters—Clement A.
Inc.;
per
$50,000,000 first mortgage bonds due
lic at $106 per share.
Co.;
$5
& Co.,
of others to be filed by amend¬
YORK
NEW
exchange
to
by
dividend rate will be filed
Louis, Mo.
Business—Operation of seven department
stores
located
in
St.
Louis,
Cleveland,
downtown Los Angeles, Akron, Baltimore,
Denver
and outlying shopping district of
Waddell
THURSDAY, APRIL 5
Offering—Company is offering to hold¬
of its 6%
preferred stock the oppor¬
The
amendment.
March 15.
Details—See issue of
shares,
par).
(
ers
tunity
shares
.
.
has
registration statement for 150,000
of cumulative preferred stock
(no
a
—
proceeds
the
receive
So., Inc.; Francis I du Pont & Co.;
Clement A. Evans & Co., Inc.; R. N. Eddie-
CO.
STORES
DEPARTMENT
MAY
will
Anderson, which
of the sale.
Dewar, Robertson & Pancoast; R. S.
MONDAY, APRIL 9
filed
offered
being
are
the
son
22.
public
the
to
Underwriters—Herrick,
with names
(3-20-45).
Address—St.
March
of
issue
Offering—Price
(par $100).
r
$1,000,000 to create a construction fund.
Registration Statement No. 2-5641. Form
S-l.
shares
Proceeds—The
ton
mortgage 3% % bonds at 104V» and $1,296,887 to the redemption of 3J/2%
and 4%
debentures.
The company will also use,
share.
^CONTINENTAL GIN CO. on March 12
a
registration statement for 37,303
shares
4VuVc
cumulative preferred stock
filed
public
the
to
$15,413,750
will be utilized to redeem $14,750,000 first
certain stockholders..
SATURDAY, MARCH 31
-
price
Offering—Offering
Of total, 25,000 shares are
and outstanding and being sold for
Details—See
and
bidding
amendment.
by
Underwriters
preferred
at competi¬
and
sale
for
will be filed by amendment.
Proceeds — Of the
proceeds
stock, par $1.
issued
Rock-
Street,
,
bonds
mer¬
Offering—The price to the public will be
filed
utility.
be offered
will
in
primarily
Engaged
—
M.
D.
Anderson
Foundation, a
charitable trust created by the late M. D.
the names will be filed
by amendment.
The successful bidders will
name
the interest rate on the bonds and
the dividend rate on the preferred stock.
tive
&
ELECTRONICS
filed a registration
225,000 shares of common
for
(par $100).
North Main
Underwriters—The
stock
Building,
—
by
preferred
shares of
30,000
Address—303
16
March
on
statement
.
Brothers heads
of 28 members.
Lehman
underwriting group
an
CORP.
be
will
public
the
to
filed by amendment.
Offering—Price
and
stock, Series A
RADIO
HYTRON
March 15.
Details—See issue of
represent new financing.
Address
Cotton
Exchange
filed
has
CO.
statement for
lative preferred
and cottonseed.
registration
a
ford, 111.
Business—Public
March 22.
Offering — The
156,158 shares of $5
preferred stock are to be offered, share
for
share
in
exchange
for
not
more
than
90%
of the 93,553 shares of
$7
preferred and 79,955 shares of $6 preferred
now
outstanding.
All presently outstand¬
ing $7 and $6 preferred will be retired
either by exchange or by redemption
at
$110 per share plus dividends to date of
redemption.
Company proposes to make
a
cash adjustment which,
together with
dividends receivable on the $5 preferred
stock, will give each stockholder who exer¬
cises the exchange privilege a dividend at
rate of $7 per share per annum or $6 per
share per annum,
respectively, up to re¬
demption date of these stocks.
Underwriters—None named.
will be filed
filed
1975,
1,
of
issue
Details—See
will be offered for
Commission's competitive
the
under
sale
&
/par).
by amendment.
Underwriters—Bonds
bidding
POWER
CAROLINA
(3-23-45).
chandising, servicing and processing cotton
& GAS
statement for
$14,000,000 first mortgage bonds due Feb.
has
CO.
KENDALL
ANDERSON, CLAYTON tc CO. has filed
a registration statement for 250,000 shares
of common stock (par $21.80).
The shares
are
issued
and
outstanding and do not
ELECTRIC
ILLINOIS
CENTRAL
OHIO EDISON CO. on
S-l.
Business
WEDNESDAY, APRIL 4
:(J
by amendment.
Houston, Texas.
SUNDAY, APRIL 8
only.
be supplied
APRIL
SATURDAY,
underwriting group, with names
Registration Statement No. 2-5644. Form
per
(3-19-45).
S-2.
the
of others to
rants to
Calendar Of New Security Flotations
be
heads
other than employees, will receive warT
subscribe to one share of common
ers,
Thursday, March 29, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
1398
and
of
the
the
maturity date to April 1,
of interest to 5%
reduction
annum and to receive in consideration
for such extension $25. the amount equiva¬
per
lent to the 2>/2%
in
addition
20
redemption premium, and
shares of the
company's
.
"
>
par)
common
stock.
The extension I
offer
will expire at noon Feb. 26, 1945.
Bonds not tendered for extension will be
($5
redeemed
at
102
and
accrued interest to
After the expiration of the *
an
amount equal to the
unextended 6% bonds are to be offered to
April 1, 1945.
extension
the
offer,
public by
offering
the
underwriters
at
the
price of $1,000
"per unit"
consisting of $1,000 20-year 5%
first mort-
initial
■
Volume
bond and 20 shares
fund
sinking
£age
of
Underwriters
Allen' &
—
& I
Bond
Co.,
H.
&
Inc., E. W. Clucas & Co., R.
Co.,
Schoellkopf,
Hutton
Goodwin,
Johnson
&
ARKANSAS-MISSOURI
Dec.
on
filed
4
for $2,000,000
•
CORP.
POWER
statenTt
registration
a
Slocumb & Co., 1 Mont¬
Street,
San
Francisco,
Californjar has been visiting in
gomery
NeurYork.
issue of
Offering—The
Feb.
filed
19
registration state¬
a
of
shares
4.985
for
of
issue
A common
Feb.
automobile
mobile
in blocks
finance men
and
preferred
for
common
share
of one
shares
two
$101
auto¬
and
of
Class
A
unit.
per
$2.50
filed
HELICOPTER,
INC.
Feb.
on
2
named
capital stock, par value 50 cents.
Details—See issue of Feb. 8, 1945.
,
of
held
shares
$1.60
at
exercised,
additional
200,000
and
reserved
be
to
five
options
on
for
offered
the
at $2
to
by
shares
sold by
Gearhart
a
Details—See
filed
9
registration statement for 200,000 shares
of common stock, par- $10.
on
Feb. 16 filed
stock, par $100.
Details—See issue of Feb.
of common
offering
is
common
22.
$100
price
offered
being
„
per
to
present stockholders on a pro rata basis of
holdings as of March 15, 1945.
their
March
of
issue
Details—See
15.
subscribed by
Shares not
amendment.
by
stockholders
will
at
offered
be
price
a
public
to
to
by
filed
by
be
OHIO LIGHT & POWER CO.
a registration
statement
CENTRAL
filed
28
Dec.
on
Underwriters
the
head
—
Peabody
Kidder,
&
Co.
($100
lative
he
filed
Details—See issue of Jan.
Offering—Company
1945.
4,
invite
to
proposes
proposals for services to be rendered to
It in obtaining acceptances of the exchange
offer of new preferred stock for old pre¬
ferred and
for the purchase from it of
such
the
of
shares
11,972
as
are
not
ex¬
changed pursuant to the exchange offer.
PUBLIC
CO.
POWER
on
a
Details—See
j.
issue
of March
8.
Offering—The company is offering 13,056
of its Class A 5% preferred shares
conversion share for share of the out¬
SERVICE
by
Light Co.
•
CORP.
March
on
bonds,
series
first mortgage
Feb. 1, 1975, and
common stock.
Interest
40,000
shares
due
D,
of
rate
registration
a
$6,967,000
for
statement
filed
7
filed by amendment.
issue of March 15
will be
Details—See
price
Offering—Offering
filed by amendment.
will be
will
Underwriters—Bonds
filed by
of underwriters
will
whom
of
names
.
will be sold
stock
offered
be
for
amendment. Com¬
underwriters the
to
be
amount of its indebtedness
to $3,750,000 by redeeming the outstanding
bonds and issuing $3,750,000 of new bonds.
The bonds will be sold at competitive bidling.
amend¬
by
filed
ment.
filed
7
March
78.731
registration statement for
a
of
shares
stock
preferred
Dividend rate
as
Details—See
($100
par).
filed by amendment 4Va%.
15.
of March
issue
Offering—Company proposes to offer one
each oi
the 78,731 outstanding preferred shares, ol
which 35,000
shares are 7%
($100 par)
and 43,731 shares $6 preferred stock, with
adjustment of dividends.
Any shares not
exchanged will be called for redemption
Piinds for the redemption will be obtained
share
,
of
new
preferred
stock
for
by offering pro rata to holders of common
stock additional shares of common at $60
share in a sufficient amount to provide
the redemption of
the unex-
per
changed preferred.
Electric Power &
Corp., parent of Dallas, presently
Light
owns
238,875 out of a total of 262,500 shares of
outstanding common stock and proposes
of a sufficient num¬
ber of common shares to provide funds for
the redemption of the unexchanged pre¬
ferred.
Underwriters—-Kidder,
Peabody
&
Co.,
•
-
CORP. on
Feb.
.
HALLICRAFTERS
CO. on March
6 filed
registration statement for 225,000 shares
common
stock, par $1.
Of the total
the company and
150,000 by certain stockholders.
Details—See issue of March 15.
Offering—Offering price to public is $8
©f
75,000 are being sold by
share.
Doyle, O'Connor & Co.,
Schmidt & Co., Inc.; A. G.
Sons; Courts & Co.; Kalman
Dempsey & Co.; Sills, Minton
Cruttenden & Co., and Mason
Underwriters
Inc.;
L.
C.
&
Edwards
&
Co.,
Inc.;
& Co.,
Inc.;
—
Brothers.
HAVERHILL ELECTRIC
CO.
on
March 1
statement for 26,000
shares of capital stock, par $25 per share.
filed
a
filed
registration
28
a
LABORATORIES,
registration state¬
shares of
foj*225,000
shares
will
sell
where
they
export
a
management of
determine whether
to
should be loaned and if
I could get the other nations of
money
world
to
in to such
come
an
their own currency, so
the
and
that money could be loaned by
Fund, I would be in favor of do¬
ing it, but anybody who went over
the record of the discussions with
countries
various
basis
the
on
prior
bi¬
Bretton
to
Woods, and prior to the Atlantic
who
anybody
Conference,
City
present and heard at Atlantic
City first and at Bretton Woods
later, the various nations, the 44
of them
represented there, ex¬
filed
7
a
considerable number of
into
pect any
it is
unless
fund
mutual
a
definitely understood that subject
to various conditions and limita¬
the
have
they
tions,
right
a
to
use
of the Fund.
resources
the other
countries that a stabilization fund
was desirable and more than de¬
sirable/ that it was necessary, an
agreement
ELECTRIC
filed
a
credit.
$100.
filed
by
!
Offering—The
of March
coirppany
CO.
the .public
to
Underwriters—The
WEST
be
names
be
on
March
for
5
filed
a
issue
fund
Fund.
rights
and
be
should
set
set
be
up
up
in
of
my
that a
that a
with au¬
or
thority to make stabilization loans
which the entire discretion as
to
filed
making
ment
granting the loans
left with
be
of
or
the
Bank
would
people
not
situation
a
where
its
people
makes
ably
that
fair
question
a
compromise
Fund
the
under
the
dollar
"That
objection is
urged
on
of
or
few
a
months
that currency,4 it is
in
terms
impossible
will
and then
other countries can put up dis¬
criminations against the dollar.
again one
by people
who have studied and
make contracts running a few
that
become scarce currency,
of
gold or silver which. can be
on
His
position on "scarce cur¬
rency" was stated as follows: "The
objection is frequently raised th?t
its currency to use it as a medium
used, where they are unwilling
on
little-
too
is possible."
as
that
exchange, where they have not
Jiere
is
it
believe that it is prob¬
me
as
attacked
and
ground
have not sufficient confidence in
is
rarely
the
vious
short
it
will
in
currency
and
order,
nations
the
something
dollar
the
scarce
come
of
unless
that
with
done
experts
are
question, because it is ob¬
the
very
if not all
most
of
is
be¬
world
will
to get
enforce discrimination against our
any
currency.
either political stability or
economic development at all.
"I think
everybody agrees "that
a
country which is engaged in
war in
its home area, which is
engaged in civil war or in which
any
large percentage of the pop¬
is
starving, can not be
ulation
expected to stabilize its currency
or
use
money
borrowed from
except for the
agency
the
on
war
any
of
in its home
purpose
and relieving starvation, and
area
putting down civil war.
"That
out
at
.
.
'
"
"Again, complaints were made
that provisos are not made for
removing exchange /controls
quickly enough, and again thj
answer
the
that
is
world
condition .of
the
such that
is
exchange
controls, just as a good many of
our price and
rationing controls,
will have to last during the tran¬
period after the end of the
until the world economy can
restored
to
something like
sition
war,
be
normal."
spelled
great length at Bretton
Everybody there ac¬
argued
was
Woods.
the manage¬
or
the
Fund,
a
...
>
,
and
Francis J.
.
Ryan Now With
15.
whose
country
condition
purpose
"That language may
(Special
be the lan¬
diplomacy, but it was
designed to take care of a situa¬
tion of warfare in the home area,
civil
and
war
"Unless
either
The
Financial
Chronicle)
Co., and Taussig, Day
& Co., Inc.
Singer Deane Scribner
starvation.
some
means
is
set
by
or
up,
very
lavish expendi¬
tures and at the risk of the United
States alone, you are
large
very
cannot
which
cannot
any
going to find
of the world
get
started
up,
areas
which
have
a
currency
relative degree
of sta¬
bility, and that means one thing,
either that such countries will fall
will
to
LOUIS,
.
to Admit Ghas. Patfon
by an international agree¬
ment
with
ST.
of
guage
countries, includ¬
ing very large ones, such as Rus¬
sia.
I believe the United King¬
dom and a good many smaller
many
transactions
exchange
into
tance by
of common
Stifel Nicolaus & Co.
provision in the Agreement that
the Fund shall not transact initial
chance of accep¬
would have no
"v-.:
issue of March
credit
on
cumulative pre
YJ:'-•V-
their
proposition
any
should
bank
to
Fund,
the
to
opinion,
preferred stock only represents a new
Details—See
refuse further
to
restrictive
access
registration statement
14,000 shares of $4.50
The
right
too
WATER SERVICE CO.
ferred stock and 100,000 Shares
shoot
the
Ryan has recently been with tvn
U. S. Army Air Corps.
In the paT
he was with George F. Ryan &
represented by
the Fund Agreement, as I say, is
a
compromise agreement, and a
compromise
agreement
which
many of the countries thought was
filed by
J
will
that,
of
would
standard
of the Fund without en¬
dangering
the
interests
of the
other members.
"The Agreement
offering to
stock for out¬
to
generals
respecting sta¬
bility of the gold value represent
compromises.
They provide Tor
orderly changes. 4 The fact that
they are being attacked ^n Eng¬
land
and
elsewhere, as To the
Fufid being too much of a gold
with any
in the
opinion of the Fund is such that
it can not use the money for the
purpose
would
VIRGINIA
borrow up
try to the resources of the
on
amendment.
by
country
conditions
and cut off the access of the coun¬
price of the new preferred
and unexchanged shares
at competitive bidding,
with
sold
be
in
/
"The provisions
MO.—Francis
T.
Ryan has become associated w5f,i
Stifel, Nicolaus & Co., Inc., f f- *
North Broadway, members of the
St. Louis Stock Exchange.
M
a
The bonds
price
hundred
two
or
sure
so
cepted the proposition and there is
the
public offering
will
.
accept it and a country which is
a
the
standing $6 preferred stock on a share for
share basis plus an amount in cash equal
to
the difference between $110
and the
Che
.
didn't accept it, but in
you
spite
not
am
States would."
of the Fund, and if
management of the Fund
thinks that it is using its access to
the Fund for purposes contrary
to the Agreement, the Fund has
on
8.
amendment.
rebel
if
I
that it can not borrow
more than 25% in any one year;
that it can not borrow except for
is
exchange the new preferred
stock.
Agreement
complicated
provides that
which permits certain
shall have the right to
registration statement for
issue
and
long
which
Corp.
SERVICE
thousand
carrying
this
is
result
rather
The interest rate on bonds and
rate on
preferred stock will be
amendment.
Details—See
...
"The
618,000,000 first mortgage bonds series due
1975 and 68,875 shares of preferred stock,
par
de¬
out
quota and giving the Fund abso¬
lute discretion to refuse or grant
50,542
and Straus & Blosser 10,000 shares.
2
worked
was
signed to compromise the differ¬
ence
between the point of view
of an absolute right of a member
of the Fund to borrow up to his
Offering—Offering price to the public is
TEXAS
.
"Well, again, as I said before,
happened to be in Central Eu¬
rope at the time currencies were
going to pieces after the last war;
I happened to be in Mexico in the
later
stages
of the revolution
when money was worth a hun¬
I
weeks
"Therefore, it being believed by
$10 per .share.
March
some years.
to
a
the United States and by
Offered by certain stockholders.
Details—See issue of March 15.
shares
ably for
any
Provision
Loans
Compromise
registration statement for
Colony
should be put off, prob¬
currency
so
Automatic
60,542 shares of 5y2%
cumulative, con¬
vertible preferred stock (par $10).
Shares
are Issued and outstanding and are being
Underwriters—First
Bank now, that any
intended to stabilize
up the
proposition
ous
and
that the United
And he added further:
you
named
INC.,
CO.,
current
vinced, that it is hopeless to ex¬
to its quota;
PATTERN
SIMPLICITY
selves up at this time to the gold
argument
is
that while it is all right to
set
are
who
standard,
the
"Therefore,
dred
world
to
imports.
made
the
in
willing to finally tie them¬
of
their
balance
jpoint
Africa, I doubt if there
countries
amount
sufficient
to
a
expected
be
can
the
until
war,
thousand to one, and where vari¬
principal underwriter.
March
future
pound their viewpoints, would be
convinced, I think, as I was con¬
per
Co.
goods
agreement to put up resources in
Offering—Stock will be offered at $3,125
&
expressed
in
gold not only inevitable but nec¬
essary and desirable.
the
fund
76,850 shares.
share.
Underwriters—Brailsford
value of dif¬
par
currencies
were
common
stockholders
certain
and
future
any
stock
(par $1). Of total company will sell 148,150
.
a
per
Feb.
dividend
5 filed
a
registration. statement for 40,000 com*
mon
stock purchase warrants and 40,000
shares of common stock par value $1 per
share, issuable pursuant to these warrants.
Details—See issue of Feb. 15, 1945.
Offering—40,000 shares of common stock
are
issued and outstanding and are not
offered for account of company.
Company
is offering
40,000 shares of common is¬
suable
upon
the exercise^of the
stock
purchase warrants and the payment of $7
per share.
••
Underwriters—Not named. 0
STORES
DIANA
RADIO
ment
to underwrite the sale
dealer manager's.
SCOTT
on
INC.
lunds' for
:
II.
E.
DALLAS POWER & LIGHT Co. on
"
and
Snider. Co. as exchange
G. H. Walker & Co.
Co.,
Wright,
agents to secure and procure consents ol
preferred' shareholders to the conversion.
The company also proposes to refund the
64,806,000
first
mortgage
bonds,
4'/2%
series due 1947 and to reduce the aggre¬
gate principal
competitive bidding and the names
sale at
mon
pub!
the
to
Estabrook &
Prescott,
make,
tries have reconstructed to
,
Underwriters—The company has retained
'
ferent
who
of
conditions
very
will
the
the
of
5% cumulative preferred shares
others than Cities Service Power
standing
the
world
South
shares
in
&
VERMONT
CENTRAL
&
registration statement foi¬
ls,056 shares of Class A 5 % cumulative
preferred stock, par $100.
filed
28
held
'
LIGHT
JOSEPH
ST.
Feb.
informed people
by
that
politically stable, until the coun¬
such
dividend rate wil)
The
par).
amendment.
by
we
feel
"And again, with the possible
exception of the United States and
the nations of the world to go
underwriting group.
11,972 shares of preferred stock, cumu¬
for
where
currencies
the various countries have become
amendment.
<
know
we
regards arrangements to
as
all
tie
not
absolute stability, which is
objection which is rarely ad¬
economies of the Governments of
was
offers
to
common
stockholders the right to subscribe to the
200,000 shares of common at rate of one
share of such common for each
shares
held.
The subscription price will be filed
Offering—Company
underwriters
named.
Underwriters—None
March
on
a
SUPPLY CO
stand
a
currency
a
lateral
CO.
PACKING
RATH
does
an
an
prevent
the
named.
underwriter
until
war,
"There
stabilization
the
principal
Co.,
&
registration statement for 4,990 shares
New
1944.
are
public will be $110 per share.
issue of Aug. 24, 1944.
to
Fund
stabiliza¬
work until the
Fund.
agreement, and provide that it
was
entirely within the discre¬
gold
1944 filed
Underwriters—No
Offering—The
$10.
registration statement for
5,000 shares of $100 preferred stock, noncumulative
and
non-participating.
Price
principal underwriters.
share.
80,880
Thf
being
for
14,
Co.
the
fund agree¬
tion
OLD STAR DISTILLING CORP. on Aug.
14,
Inc., arid Bond & Goodwin, Inc., are named
BLUEFkLD
&
of
criticisms," he said, "that the
are
world has settled down after the
it
conditions
and
terms
"If I could draw
shares
public by
Underwriters—Kobbe,
what
should be loaned.
7
Dec.
and are
of Dec.
issue
Underwriters—Otis
ac¬
changes in the
Federal Water <te Gas Corp.
Details—See
criticisms
until
is
tion agreement can
ment,
on
par
outstanding
now
practical
the
underwriters.
share,
per
stock,
common
are
CO.
,
Criticisms Answered
formed ones, is that no
on
and if
as
stockholders will be
the underwriters
the
of
not
reconstruction
Other
vanced
is
Corp.
*
.
Mr. Brown next turned to other
erally urged by the more serious
critics of the Fund, the more in¬
is to be loaned, that the
lending it should have the
right to say whether it should be
loaned at all, and if it is loaned,
15.
statement
registration
a
shares
as
are
by the corporation to the underwriters are
exercised.
Such shares of stock as are not
subscribed
filed
is
Fund
criticism" that
person
to be issued
when,
issued
certain stock option warrants
a
CO.
Boston
SERVICE
WATER
the
the
to
to
principal underwriter.
OHIO
200,000
Issued when,
outstanding
certain
each
for
share;
per
reserved to be
are
if
are
shares
additional
four
shares
and
March
of
First
—
Turning
economic
traditional point of view
banker, which is the one I
free to say I share, is that if
■
LEATHER
issue
more."
or
complished, Mr. Brown remarked
that "the second objection gen¬
of
Offering—Of shares registered 1,000,000
tare to be offered presently proportionately
to holders of outstanding stock on basis
right to bor¬
a
recapitalization.'.
of
Underwriters
bor¬
"The
shares, the latter in¬
cluding 61,338 common shares to be issued
to
existing shareholders in exchange for
certain
outstanding
shares
pursuant
to
registration statement for 1,400,000
a
shares
should have
Some
The Plan Not Premature
diffi¬
a
of the
per
a registration statement for
convertible preferred shares
Details—See
BENDIX
$25
100,000 common
plan
Underwriters—None named.
filed
9
17,000
and
idea that
money.
am
■■
March
eration
money
at
rata
pro
NORTHWESTERN
dealers
is offering the
capital
stock
to
new
Underwriters—None named.
22.
Offering—Preferred and Class A common
will
be
offered
only
to
factory
row
company
of
stockholders
share.
etock
"authorized
shares
present
stock
stock.
preferred
and 7,470 shares of Class
Details—See
INSURORS,
DEALERS
find it pretty
men
cult to accept the
Details—See -Issue of March 8.
26,000
'of
business
more.
for
.postpone
all
possibility
of
achieving any of those results, in
my opinion, over most of |;he con¬
tinent of Europe and other large
portions of the world for a gen¬
(Continued from first page)
1944.
7,
will be offered
sale at competitive bidding. .
on
U
..V
.
rower
Dec.
Offering—The bonds
AUTOMOBILE
.•
Of International Monetary Fund
re-
tj^niing to the Coast shortly has
been staying at the Hotel Bilt-
first mortgage bonds, series
Details—See
ment
is
Mr. Blum who
due Dec. 1, 1974.
A, 3 Va %,
INC.
Edw. E. Brown Answers Criticisms
Blum, vice-president
of Brush,
Inc., Buckley Brothers, George
R. Cooley
& Co., Inc., Brailsford & Co.,
and Ferris, Exnicios & Co.. Inc. V/
Pomeroy,
;
E.
Ernest
1399
to
Ernest Blum Visits N. Y.
stock.
common
.V
THE COMMERCIAL & FINANCIAL CHRONICLE
4372
Number
161
hopeless chaos or else they
adopt some form of totali¬
tarianism,
maybe
Communism,
maybe some form of state social¬
ism akin to Nazism or Fascism,
PITTSBURGH, PA.—Charles F.
will become a partner in
Patton
Singer, Deane & Scribner, Union
Building, members of th<*
New York and Pittsburgh Stork
Trust
Exchanges,
Patton
local
for
as
April
of
years
many
manager
J.
for
5.
M~.
has been
S.
Bache
Co.
&
Karboski Heads Bepf.
at
Syte & Company
is now'in
Research Depart¬
ment of Syle and Company, 19
preferred at $104 per share.
Any -stock
agreement then would be inef¬ currencies
not subscribed by the stockholders will be
and
stabilization yi Rector Street, New York Cit'r.
offered to the public at $104 a share.
fective because it would not em- currencies must await bal^nted Mr. Karboski was formerly in the
Offering price of common stock to the
brace
a
sufficient
number
of currency and settled govprmnents Research Department of H. HentT.
public will be $13.50 per share.
Underwriting—Allen & Co. and Shea &
& Co.
and exports equal tp^lmports is
countries of the world."
Offering—Company
will sell preferred
stock to the underwriters who will offer
same
to holders of present $6 cumulative
countries
into
such
would
an
probably
come
agreement, but the
fighting to destroy.
"To say that it is setting up\an
arrangement for stabilization \f
which
we
are
John
charge
W.
Karboski
of the
■
CO.
.
■,v--
-i'/
.
^
THE COMMERCIAL &
1400
Thursday, March 29, 1945
FINANCIAL CHRONICLE
New
England Public Service
Preferreds
Majestic Radio
Underwriters-j?
Foreign Securities
Dumont Laboratories
Secondary Market and
Teletype
1-971
Cont'I-Diamond Fibre 4s, 1960
Wholesale Distributors
MARKETS
NY
Pfd.
Continental Can 3%%
.Foreign Securities;
f!ARL MARKS & PO> INC.
N.Y1
New York 4#
•.
*
HA. 2-8780
Exchange PI., N. Y. 5
40
50 Broad Street
Dealers Ass'n
Y. Security
Members N.
SPECIALISTS
Telephone
& Co.
M. S. WI EN
OYER-TUG- COUNTER SECURITIES
SECURITIES
FOREIGN
N.
Teletype
1-1397
Y.
HAnover
CHICAGO
MARKS & CO. Inc.
AFFILIATE: CARL
2-0050
Kobbe, Gearhart & Company
INCORPORATED
Members
York Corrugating
Indiana Gas & Chem.
Cen.&S.W. Utls.
5
YORK
NEW
Northern New
Bell Teletype
Worcester
with the intermediate-term 2s
Bought—Sold—Quoted
2Y2S of 1967/72 in demand.
CORPORATION
FIRST COLONY
Hanover 2-7793
...
make use of short-term securities such as Treasury
bills and certificates of indebtedness as a temporary means of
Securities
New York 5
Teletype NY 1-2425
70 Pine Street
Transportation Assoc.
Oceanic Trading
National Service Co.
tors properly
Investment
Underwriters and Distributors of
selling at new all-time highs and the
recommendation that between drives inves¬
The Government
England Co.
Schoelikopf,
Hutton & Pomeroy
1-576
york
new
Enterprise 0015
2-3000
Keyes Fibre
Association
Dealers
telephone
philadelphia
telephone
RECTOB
Security
STREET,
Pittsburgh Railways
PTd
Cent States P'r $7
York
NASSAU
45
Winters & Crampton
New
RALPH F. CARR & CO.
employment of cash balances pending reinvestment of such funds
in War Loan obligations created a substantial demand for the
certificates, which moved up the
latter part of the week.
.
.
.
tx *
BOSTON 9, MASS.
™
a
Teletype?
.Boston
New York
Hubbard 6442
Hanover 2-7913
BS 328
CANADA AND UNITED STATES
Finance
*
Governments"
"Our Reporter on
CHIPPENDALE, JR.
By JOHN T.
announced the restrictions as
be offered in the coming
of these obligations would
not be made public until the market had an opportunity to "settle
a little."
Last Thursday Secretary of the Treasury Morgenthau
disclosed plans to withhold maturities until the ''last minute," and
indicated that the new technique would set a precedent for future
month the Treasury
Earlier this
buyers and the securities that would
War Loan, but decided that the maturities
to
security-due in 4 years and 6 months. ... A comparison
in the War Loan Drives in
and the issues to be offered
UNITED
STATES
■"Short term,
bond
V/2%
"Long term, 2Vi%
of the new policy, Mr. Morgenthau stated, will
insure a minimum of "switching" and speculation in Government
securities which has resulted in large acquisitions by commercial
Securities with
announced by Treasury.
Frederick C. Adams & Co.
Yield
100
1.75%
100
3.00%
_
New
and March 24 of the
comparison of prices on March 3
A
v
taxable
affected by the new financing shows what has
taken place in the Government bond market since It was decided to
withhold the maturities of the issues to be sold in the next War
bonds most likely to be
Loan.
The table follows:
.
.
.
Closing Bid
t2 "
due
due
due
t2
due
in 32nds
102.19
102.17
102.18
——
due
t2
t2Vi due
due
t2
2V% due
*2'/4
due
*2>/2
due
*2>/2
due
•2'/a
due
•2Va
due
•2Vs due'
•2>/2
due
2Vs
due
102.14
102.18
+
4
102.10
+
5
102.11
+
9
105.15
+
102.8
103.23
+ 19
101.28
102.8
+
105.19
+
102.1
102.9
+
+
2
101.18
+
3
101.10
101.13
101.9
101.12
101.8
101.12
101.8
101.12
101.28
102.16
+
3
+
,3
+
4
+
,•
4
;•
.
+ 20
tNew all time highs, made between
is
indicates that prices have moved up since the
securities to be available in the drive were an¬
This compilation
restrictions and the
nounced, and it is believed that the
an
fine
work
been
have
from the banks.
.
.
dates.
.
.
.
The opinion is
and the Federal
receiving and will continue to receive
restrictions
of
more
as
to buyers
.
.
.
NSTA
Broker
-
1386
Investment
Funds
BANK
—
INSURANCE
-
INDUSTRIAL
REAL ESTATE
—
1392
....»...............
.1390
1375'
Notes
Reporter
on
1381
1400
Governments
1382
Utility Securities
...1378
Securities
Securities
PUBLIC UTILITY
1374
and Notes
Reporter's Report
Real. Estate
of New York,-last
Recom¬
Literature
and
News
Our
Unlisted Securities
1374
Items
Security Flotations 1398
Securities
Railroad
of Allan
investors heed closely the ad¬
of the Treasury against speculative buying of securities,
etc., resulted in higher prices
Calendar of New
Public
week, that the banks and non-bank
monitions
Personnel
Broker-Dealer
'.1384
Stocks
Insurance
and
Mutual
Specializing in
Secretary Morgenthau and the request
Sproul, President of the Federal Reserve Bank
Page
Bank
Municipal
INTERMEDIATES AND CERTIFICATES FAVORED
The statement of
INDEX
Our
.
San Francisco
RnffiitttiiiiPiiiiiiiiiiiiiitiHiiiiiniiiinmiiiiiiittiiiiiiiiiiiiihiiiittiiiiifUiiHtiuiiiitiintiiiiiiiiiiiitt
mendations
having the exact maturity
quarters that a withholding
maturities.
Chicago Philadelphia
Boston
Dealer
in the coming drive would have been
effective than the withholding of
Telephone COrtlandt 7'5060
Canadian
market has pretty well adjusted
held in some
New York 6, N.Y,
131 Cedar Street
Trust Co.
example of the cooperation the Treasury
Authorities
Guenthet Law
*
Incorporated*
done by the Savings Bank
beng
Prepared—Conference Invited
Plans
Albert Frank
in 1944, and jjas con¬
position to the new financing without
its
All Its Branches
In
far this year in savings
This
March 3
1945.
so
ADVERTISING
. . .
deposits, means that savings banks
will have more new funds available for the purchase of securities
in the Seventh War Loan than in previous drives. ... In order
that those funds be kept out of the market until the drive issues are
available, the Savings Bank Trust Co. is paying savings banks in New
York State 2% on new deposits (1% on old deposits) left with them
until the pay date of the War Loan Securities. ...
tinued
8
102.8
101.15
present high
the restricted 2}£s and 2V£s.
substantial increase that took place
The
15
102.6
the insurance companies, at
SAVINGS BANKS' CASH MOUNTING
12
105.4
limited.
been sold by some of
levels, have been reinvested in
+10
103.9
!
partially exempt bonds that have
7
105.6
3-15-1965-70
3-15-1966-71
9-15-1967-72^__„
March 24,
1
101.30
—
learned that the insurance
The funds obtained from the
'
+2
+
102.4
—„
—
•Commercial bank ownership
and
102.18
102.18
102.5
;
—
was
Tele. BOston 22
HANcock 8715
of their municipal bonds at current
1
+
102.16
9-15-1951-53
12-15-1951-55J3-15-1952-54—
6-15-1952-54
6-15-1952-55—
12-15-1952-54
3-15-1956-58
9-15-1956-59
6-15-1962-6712-15-1963-68
6-15-1964-69.
,12-15-1964-69
12V* due
1
—
102.17
9-15-1950-52
t2
Change
Price March 24
102.20
3-15-1950-52
t2
Closing Bid
Price March 3
Security—
t2% due
6-15-1949-51
t2
due
9-15-1949-51—
t2
due 12-15-1949-51
companies are still letting out
fancy prices. . . . Also, it
was reported, that these institutions are allowing some of the cor¬
porate issues that are being refunded to be paid off, or are replacing
them with smaller amounts than they previously held. . . . The
monies realized from these transactions will be invested in the issufes
that will be offered in the Seventh War Loan. ...
It
some
BOSTON 10
Established In 1922
ANTICIPATING DRIVE
INSURANCE COMPANIES
REACTION
Unlisted Securities
England
24 FEDERAL STREET,
Tel.
THE MARKET'S
Specialists in
.
due Nov. 1, 1949.
Long term, 3% due Oct. 1, 1959-63term, 134%
New Eng. Market
a
2.25% to 2.50%
Indicated Price
«
.
.
•* 100
100
—:
SECURITIES
TEXTILE
CANADA- -EIGHTH WAR LOAN
Short
Stocks and Bonds
Public Utility
and 2Vz%
Adoption
prices.
Industrial Issues
Yield
1.50"*
all
Investment Trust Issues
LOAN
WAR
SEVENTH
Indicated Price
•Maturities not yet
drives....
banks and driven up bond
We specialize in
Insurance and Bank Stocks
of the rates
the United
States and Canada is as follows:
.
.
.
announced on March 22 that Canada's
Minister Ilsley
Eighth Victory Loan would get under way on April 23, and that a
goal of $1,350,000,000 had been set. The long-term issue
will have a maturity of 18 years and five months, with the shorter
minimum
Securities.............. 1376
Salesman's
Tomorrow's
..1395
Corner
Markets—Walter
Whyte
'.T..
Says
1376
LUMBER & TIMBER
for practically all of the taxable issues,
BONDS, PREFERRED AND COMMON STOCKS;
An
Eastern
States, Pfd.
.
Electronic Company
Common
Macon Northern 5's
W. T. BONN & CO.
Broadway
Bell
Teletype NY 1-886
—
QUOTED
REMER, MITCHELL & REITZEL, INC.
208
So.
La
Salle
% Memo
on
Request.
St., Chicago 4
Stock
Available
on
Request
western union
teleprinter
HUGHES & TREAT
New York 5
Telephone COrtlandt 7-0744
SOLD
RANdolph 3736
Report
120
—
Corporation
Dividend Payer
Radiator, Pfd.v
Central of Georgia
BOUGHT
Low Priced
111. Power Div. Arrears
U. S.
Wilmington Chemical
Attractive
Pressurelube, Inc.
"wux"
bell
system
teletype
cg-989
'r
Hill, Thompson & Co., Inc.
Markets
120
40 Wall
Tel.
BO
St., New York 5, N. Y.
9-4613
Tele.
NY 1-1448
and
Situations for Dealers
*
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
@FedFRASER