The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
.
Final
Edition
311944
MAR
1
2 Sections-Section
In
YEARS
OVER 100
ESTABLISHED
&MM£tC£&£ an
Keg. TJ.
Volume
New
Number 4268
159
Planned
This Is America
By
GEORGE
Willard
the
Dow
statement
SOKOLSKY*
E.
By MORDECAI
President of
Co., made a
H.
Dow,
Chemical
concerning his company
to the Truman
of
Committee
i
Congress
n
which he said:
"(The
pany)
s
b
All
builtafact
o
r
in
at
had discovered
dividuals
pass¬
electric
the
liberate bromine,
out the treated
wooden tower he de¬
blowing
brine
in
vised,
he could separate and re¬
the bromine.
My father
cover
had
a
..
basic
idea.
.
are
OPA Administrator Looks Forward To Time When
.
My father
V
are
appraisal
the
of people in the country who are quite as
be rid of price control and rationing measures as those
"There is .no
anxious to
to an.
response
Regarding Prospect Than Most Others, He Says.
mistic
in
made
group
of :
of
OPA,"
situation
for!
it was
m
i
i
n
trator
s
Che
t
s
e
r
>
mymmmmmmmi cm ■ ■
"M
M'W*
-
L>' :2 -i MI
^Address delivered at the Forum
General index on page 1328.
of
the National Industrial Confer¬
ence Board at the Waldorf-Astoria
Session
Underwriters
of
259th meeting
the
"Chronicle,"
Mr. "Bowies said that "No one will
the
to
Editor
of
the
be
in
the
post-war pe¬
The
riod.
"Chronicle,"
it
be
will
re¬
called, recent¬
ly published a
s
;
■
on
this subject. These
NEW YORK STOCKS,
INC.
Buy War Bonds
products of heavy industries are
concerned, such 'as automobiles,
refrigerators and household equip¬
ment. The text of his letter reads
as
follows:
;
,
.
of
all
war-time
controls.
Just
Geneva
INVESTMENT
York 4, N. Y.
Cleveland
HUGH
SECURITIES
64 Wall Street, New
Teletype NY 1-210
LONG and
Albany
Buffalo
Pittsburgh
Williamsport
Troy
COMPANY
15 EXCHANGE PLACE
MX SO. SPRING ST.
JERSEY CITY
Syracuse
Dallas
LOS ANGELES
always
by expert staff in
Purolator Products,
Securities
Kobbe, Gearhart & Go.
INCORPORATED
Members N.
or
by some more
In either kind of economy
*
there
the Forum
meeting of
Industrial Confer¬
Address delivered at
of
Session
the
259th
the
National
ence
Board at the
Waldorf-Astoria
March
Hotel, New York City on
23, 1944.
(Continued on page 1306)
i
j
THE
CHASE
service with Chase
correspondent ^
Members Nexu
facilities
York Stock Exchange
York Curb Exchange
Member
30 Broad St.
New York 4
Tel. DIgby 4-7800
Federal Deposit Insurance
Corporation
Tele. NY 1-733
New
Y.
Security Dealers
Ass'n
Analysis upon Request
Tel. REctor 2-3600
PhlladelDhm
;
New York 5
Teletype N. Y. 1-576
Toi^nhone
Ent»rnrts«» 6016
HART SMITH & CO.
York Stock Exchange
120 Broadway,
45 Nassau Street
Telephone:
Bell
Kew York 5, N. Y
REctor 2-7400
Teletype NY
1-635
*
ALL ISSUES
REYNOLDS & CO.
Members New
England
Public Service Co.
Welder Co.
DetrolaCorp.
EXCHANGE
TELEPHONE-RECTOR 2-6300
"planned"
Broaden your customer
Inc.
U.S.Truck Lines
NEW YORK 5, N.Y.
other
Hugh B. Cox
handy aneconomy
control- ' V •:
'*'
led or regulated by centralized
or concentrated power is not-free,
whether it is described by the
International
BROKERS
14 WALL ST.,
term.
the
Brokerage
Federal Machine and
Over 'The' Counter
MEMBERS NEW YORK STOCK
the
On
ac¬
sense
I
Actual Trading Markets,
Bull, Holden & C°
cepted
OF THE CITY OF NEW YORK
Bond
Members New
INCORPORATED
York 5
com-
1 y
Hardy & Co.
Prospectus on Request
W.
PHILADELPHIA
I
BOND
v
Established 1927
Rep.
BOSTON
Chicago
"
the
in
a
economy
NATIONAL BANK
for Banks, Brokers
R. H. Johnson &Co.
is
traders
free
a
of
(Continued on page 1328)
and Dealers
Stock Exchange
other Exchanges
by
number
invidious term.
1312)
on page
made
'
:-
cial circles
Members New York
2-0600
choices
dent
word
pointed out that in the
of the soft goods industries,
"No? one will be any happier
large number
of
comments than I when the pressure of forces
made by various personalities in generated
by the war subsides
Government, business and finan¬ sufficiently to allow abandonment
."
Hirsch, Lilienthal & Co.
HAnover
indepen¬
Bowles
Chester
VICTORY
25 Broad St., New
the result
of
trols" and
war
Service
-
operations
are
happier- than I when the pres¬
"of forces, generated by the
subsides sufficiently to allow
abandonment of all war-time con¬
sure
clothing, shoes, etc., this should
be
possible more quickly than
may
be feasible insofar as the
expressions were given in our is-
Distributors
London
eco¬
power
of the market
of
18 last,
of March
letter
case
23,1944.
(Continued
his
should be con¬
Hotel, New York City, on March
Dealers
In
March 2
such measures
tha,t strains our productive ca¬
pacity to the limit. Our great in-
LOAN
whether
tinued
ASSOCIATIONS
special
section starts on page 1314.
f
ing
the
'^Chronicle"
V o r
of
Maritime Commis¬
AND
SAVINGS
Bowles in fa-
with his views
sion, and Lend-Lease Administra¬
tion plan the market on the basis
of an ascending scale of demands
Id This Issue
of Feb. 17, Feb. 24,
and March 9.
sues
stated by Ad-
in
Moidecai Ezekiel
articles, titled some
organ¬
"These Days," are a feature of ized way looks
1
the
New
York
"Sun" and, the beyond the price itself and which
-&bove. is- -r'eprinted from its issue involves some conscious program
of March 22, by permission of that as to future developments.
In wartime, there is no ques¬
^publication and King Features
tion but that production must be
Syndicate;< ,v yv
v •
,;.Jplanned, and planned under pub¬
(Continued on page 1313)
lic direction. During the war, the
and
the
m o n
who^
us
work
economic
Army, Navy,
Opti¬
War-Time Controls Can Be Abandoned—More
on
competitive
market,
or
whether they
Sokolsky's
CALIFORNIA
All
to
price
.
in
is diffused and
01 Price And Rationing Controls
in¬
which,
':,Mr.
which
nomic
«
An
economy
a
from the Ohio
a
of
response
current
could
-^regulate the
Chester Bowles
made solely in
through brine
Sokolsky
Any discussion of a free as opposed to a planned economy must
a discussion of the nature of the forces that control or
market.
production de¬
cisions
by
the Price
Freedom."
in the end be
whether those
School
an
is Desired "We Must be Prepared to Pay
and Assume the Burdens of Economic
I
question,
however,
is
Cleveland. He
ing
omy
The
y.
Case
student
that
Aided by Anti-Trust Laws—The
American, He Says, Does Not Like To Have the Govern¬
ment Tell Him How to Run His Business—If Free Econ¬
production is planned. No farmer harvests a crop, no manu-,
a product, unless some one has first planted seed or
an
the
he
The Modern
Holds Free Economy
facturer makes
worked out as
by
In Most Cases, Planning
Solicitor General, Department of Justice
y
idea which he
and
Assistant
Operated Or Controlled By A Public Agency.
H.
a
Copy
By HUGH B. COX*
<*>
JOSEPH BRILL EZEKIEL*
Tendency Is To Permit Planning Only On Condition
father, Dr.
on
a
Free Markets After The War
vs.
By A Responsible Bureaucracy—-Holds
That It Is
60 Cents
Price
York, N. Y., Thursday, March 30, 1944
Government Economist Favors,
Dow,
wells
Office
Economic Advisor to the Secretary of Agriculture
Herbert
George E.
Pat.
com¬
w a
founded
my
S.
Members
New York Security
Bell
Hew York
•
Dealers Assn.
52 WILLIAM ST., N. Y. 5
Teletype NY
HAnover 2-0986
1-395
Montreal
Toronto-
IRA HAUPT & co.
Members of
Principal Exchanges
111 Broadway,
REctor
2-3100
N. Y. 6
Teletype NY 1-1920
Trading MarketB lit .*
,
„
Pfd.
Com.
&
Birmingham Elec. 7%
.
Remington Arms
CANADIAN BANKS
Republic Nat. Gas
National Fireproofing
Warren Bros. Class "B" & "C"
CANADIAN MINES
Bonds &
Common
Established, 1920
Axton-Fisher Tob. "B"
-
Kearney & Trecker
Teletype NY 1-672
Short Of The Goal Of Full Productive
Here Or Elsewhere,
Mitcliell & Compaiuj
a
of realism,
sense
national
if
•
than
t h
Preferred
after
had
lies
s
New York 5
s 5
tu b b
;
not
move
ornly
question
any
.
*
Address
today in a
last-ditch
the
D.
had not awakened to
we
regulation pro¬
hibiting security sales by personal
Ontario
present
to.
re¬
\
before
the
Ifiterna^
on
held at
Hotel, Washington,
C„ on March 4, 1944.
(Continued on page 1326)
Economic
Union,
Statler
Preferred
emanating from the Prov¬
sages
a
such reg¬
rigidly enforced."
The ban on telephone sales and
number of other regulations
be
By MILAN D. POPQVIC*
says
the Commission
urgency for im-*
corrective measures in
Street, New York 5
Telephone: WHitehall
reached
has
the
and
York Curb Exchange
NEW
ST.
Teletype NY 1-1140
.
YORK
5
HAnover 2-9470
RAILROAD
BONDS
merits
Associa¬
WHitehall 3-7253
Direct Wires to Philadelphia &
New
York
are
jority view, correct or not, and in
this
instances
The first forum will be held on
investment.
again it is indicated that-the rela¬
tively unthinking investors domi¬
April' 14 at the New York Curb
Exchange, Board of Governors
Room, at 4:30 p.m. Speaker will
be
Arthur Knies, of Vilas and
even
spec¬
&
Preferred
this
in
were
England Public Service
and
Walworth, Preferred
&Teetie<miGompaitvu
in
rose
most
Security Dealers Assn.
N. Y. 5
Teletypes—NY
exis¬
tomorrow
ever,
the recent pe¬
in
Hanover 2-4850
1-1126 & 1127
doubled
price.
M.
D.
So,
contrary
Popovic
'
to
All
of
this
in
Issues
our
we
upon
be
pleased
,
Distilling
Plain
-Vis
Bought—Sold—Quoted
•
ON BONDS WITH.
Coupons Missing
OR
Hickey, who will present current
events affecting trading .in rail¬
road securities. An open question
Mutilated
period will follow Mr. Knies' ad¬
dress.
The
second
forum
will
be'on
utilities and will be held in May.
Further details will be announced
C.E.deWillers&Co.
Members New York Security
5, N. Y,
Teletype NY 1-2361
REctor 2-7634
Eyitian Opens New Dept.
For Pulis, Bowling
St., New York City, members of
the New York Curb Exchange, an¬
nounce
the formation of an in¬
vestment
Pittsburgh Railways
Pgh. Term. Whse. & Tnsf r.
Fashion Park, Inc.
Hotels Statler
department under the
of Carl E. Eyman.
Jonas & Naumburg
Mr.
Eyman
was
formerly
with
Y
U. S. Radiator Corp.
•
Troster,Currie&Summers
Members New York Stock
Dealers Assn.
120 Broadway, N. Y.
later.
B. W. Pizzini & Co.
to send
request.
Exchange
25 Broad St., New York 4, N.
HAnover 2-0600
WE MAKE BIDS
management
Members
I
of
Society of
Security Analysts, Inc.
(Continued on page 1321)
is contained
special circular which
Simons, Unburn & Co.
this, month
earlier
Pflugfelder,
Pflugfelder, Bampton & Rust.
Pulis, Dowling & Co., 25 Broad
PMs.
Teletype NY 1-609
Corp.,
America®
Virginia Public Service
G.A.Saxton&Co.,Inc.
(70 PINE ST., N. Y. 5 Wllitehall 4-4970 I
Popo¬
company
shall
Issues
& 7%
hence, or
investor trying to
An up-to-date analytical study
Northeastern Water
All
Ridge
FASHION PARK, Inc.
Issues
England Public Service
All
five years
William
is
ums,
Los Angeles
.
Analysis of
Illinois Power
or
as an
before the New'York
the market says that
the gold stocks are good invest-
Pfd.
but
*An address made by Mr.
this opinion,
$6
the
vic, who is analyst for the Blue
al¬
and
Green Mountain Power
In
scene.
which
stocks
gold
market
>
through
riod
37 Wall St.,
they
tence for years
Preferreds
the
light of points discussed here they
are
wrong
and I
don'tknow
whether I shall be proved right
are
not new;
other
in *most
as
nate
bear-
ishness
many
The market action follows ma¬
reasons
for
as
Exchange
York 5, N. Y.
this year
of
hold¬
for
elements
63 Wall Street, New
inaugurating a series of forums
on subjects of especial interest to
members. Chairman of these for¬
tion
nega¬
Security Traders
The
BUCKLEY BROTHERS
conservative
1-1843
International Detroia
6%
WALL
Members New York Stock
of them sell at
prices which even discount future
expansion.
,
tive
Macfadden Pub., Pfd.
/
Members New
64
financing of legitimate mining
The
New
Frank C. Masterson & Co.
hamper
ProgramOf Forunts
many
3-1223
& Chemical
Gas
Common
r
1955
*Dealt in on New York Curb Exchange
the Pro¬
upon
Government
STAHY Inaugurates
ulative
Bell
New York A. C. 2s,
serious proportions,"
ing.
not
to
speak of the
Teletype NY
Y.
Preferreds
of the sale of securities
in Ontario," and adds that "evi¬
dence before the Commission in¬
dicates that fraudulent practice in
the sale of securities to the public
that is, the stockholder in the mines, in the light of plain*
economics, principally the factors of supply and demand.
On that basis it would seem that the gold securities contain too
H. G. BRUNS & CO.
N.
&
Great Amer. Industries
development."
owner,
Members
Debentures
5%%
is not intended to be a review of monetary, system or a
This
New
&
Common
respect
discussion of theoretical gold standard.
It is only a practical con¬
sideration of the position of gold metal from the viewpoint of its
Preferred
&
Common
Indiana
*5%
1959
6s,
Struthers Wells
Bell
Central States Elec. (Va.)
proposals^,
is convinced from evidence at its
vincial
©old Stocks
20 Pine
WHitehall 4-8120
Bell System Teletype NY 1-1919
which if allowed to continue "must
Retail Properties
.
Members New York Curb Exchange
65 Broadway
telephone
long-distance
include
"to
inevitably reflect
'
Members New York Stock Exchange
visits to residences or by
calls
mediate
Stock
W. t. Douglas Shoe
'
Edward A. Pureed & Co.
the
of
extension
the.
mended
ultimate hearing^ "of the
of
delivered
Conference)
Citizens
tional
If
the United
in
sion's new
been able
have
we
standing alone
fight.
or
in other prov¬
States by
of securities
inces
Through wholehearted cooper¬ k The report
ation
might well be
Amer. Gas & Power
sales
Bay way Terminal
ban on the
a
ulation
Axis forces we
NY 1-1548
Legislature urging
ince of Ontario and that
back the
held
COrtlandt 7-4070
Al¬
our
danger, even before
and put our great
post-war problems.
nations
now
York Curb Exchange
or
war.
If
Vanderhoef & Robinson
more
r e e-score
this
Du Mont Laboratories
ONT., CANADA—
The Ontario Mining Commission
has filed a report in the Ontario
were suggested as amendments to
producing and our fighting forces the Ontario Securities Act, but
with those of the other United the
Commission
recommended
Nations to form one gigantic fight¬ passage of a new measure includ¬
ing machine—we probably would ing some of the provisions of the
not
be
here
today
discussing old act as well as the Commis¬
secur¬
two-
years
Curb Exchange
to
prosper¬
ity and
ity for
Prior Pfd.
TORONTO,
producing forces into cooperation
with the fighting forces of the
democratic nations; if we had not,
after Pearl Harbor, linked our
that
are
we
have
^United Cigar Whelan
'
branch office*
Boston & Maine
Distance Telephone
Pearl Harbor,
will be needed
Savoy Plaza
Common
our
telephone calls or telegraph mes¬
mortal
our
coop¬
eration
Bell System Teletype
here today to discuss, with
of confidence, and of urgency, the kind of inter¬
eco¬
nomic
Telephone
Direct wire* to
: ■
long-distance telephone calls from
Ontario.
The report also recom¬
"FOWLER*
It is fortunate that we can assemble
Teletype N. Y. 1-1227
31 Nassau Street
Employment,
Policy, Off ice of Economic
Affairs, Depaftment of State
WOrth 2-4230
Members New
Inter¬
Chief of the Division of Commercial
Broadway, N. Y. 5
Y.
NY 1-1557
New Orleans, La.-Birmingham, Ala.
Stock Sales By Long
He Avers
By WILLIAM
Baltimore Stock Exchange
N.
St., New York 4, N. Y.
HAnover 2-0700
.
Ontario Would Ban
national Trade Over Pre-war Levels, We Shall Fall Far
United Traction Albany, v.t.c.
3-6s, 1956
In
Increase
Substantial
A
Barriers—Without
Schenectady Rwy., Com.
on
25 Broad
BROADWAY, NEW YORK
Tel. REctor 2-7815
.
120
Mr. Fowler Views Most Basic Problem That Of Trade
Mayflower Hotel, Common
•Traded
New York Curb Exchange
Progress Toward International
Economic Cooperation
Bohack Realty, Pfd.
Bell
Members New York Stock Exchange
;y,
Exchange
New York Stock
NEW YORK 6, N. Y.
,
Telephone BArclay 7-0100
120
'Members
,
NY 1-423
BELL TELETYPE
Members
'
Exchange and Other Principal Exchanges
BROADWAY
115
HA 2-2772
Exchange PI., N.Y. 5
40
Members N. Y. Stock
Dealers Ass'n
York Security
New
Members
Steiner,Rouse&Co.
frfC pONNELL & Co.
Goodbody & Co.
KING & KING
Stock
Walworth Pfd.
^
CANADIAN UTILITIES
Whelan
United Cigar
Birmingham Elec. 6%
Botany Pfd. & Common
|c
CANADIAN INDUSTRIALS
New Haven R. R.
Cyanamid Pfd.
American
Markets inXJ. S.
We Maintain Active
Alabama Mills
Old
Thursday, March 30, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
1298
Y.
Tele. NY 1-210
N.
Y.
Security
Dealers Ass'n
HA 2-2400
Trinity Place, N. Y. 6
Teletype NY 1-376-377
Private
Wires
Detroit
-
to
Buffalo
Pittsburgh
-
-
Cleveland
St. Louis
•
•
Magid Joining Army
Samuel
74
MARKETS
INFORMATION ♦
TRADING
i
E.
Magid,
Vice-Presi¬
Hill, Thompson & Co.,
Inc., 120 Broadway, New York
City, is leaving shortly to join
the U. S. Army.
dent
of
T. J.
FEIBLEMAN & CO.
Members
New
41 Broad
Orleans , Stock Exchange
Street
BOwIing Green 9-4433
New York 4
Tele. NY 1-493
Volume 159
The
and
COMMERCIAL
Comparing
;
FINANCIAL
Reg.
..
t
CHRONICLE
Patent Office
Mergenthaler Lino.
\
the
25
Spr.uce Street, New: York 8
J
BEekman 3-3341
:
Herbert D. Seibert,
Editor and Publisher
obtainable
that
to
from
similar
other
issues,
the
,
AND COMPANY
*
Due August 1, 1968
'
^
' 7
a
4
'
" 'V'"'
/
1
'
'
Vl
'
'
' '
.
,
\ %
,
GRIN AND
r*'
Jlt /
**
(Callable August 1, 1947 at 104)
TEAR IT
look attractive at
If
10614 and interest
William
William
'
-!
r
Dana" Seibert,
D.
To net
Manager
•%
V-. "
\* '
•* i'
<!■'
■s"'■
/
_
Published twice
•'I
a
•^
'
,v*
*.
-
'i- *• '/f-
»
(general news and advertising issue)
our
Obsolete
DuMont
Thursday
Get
WALL
PHILADELPHIA
1528 WALNUT STREET
us
bond,
or
on
you
well grin and tear
as
satisfaction!
99
every
just
as
up!
in
from
bid
a
stock
it
s
Kellogg Company
week
get
obsolete
might
3.35% to maturity and 2.85% to the optional period.
'v*
Thursday, March 30, 1944
can't
you
that
President
Riggs,' Business
>V,'•/.'
-•
liCHTtnsTtir
-
TURNPIKE REVENUE 33/4% BONDS
II A. E. Staley Iff
Seiberling Rubber
Publishers
i
yield
COMMONWEALTH OF PENNSYLVANIA
William B. Dana Company
v
,
0. S.
1299
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4268
bid
and
now,
":
•
grin
/
Securities
Dept..
STREET, NEW YORK
Telephone:
WHitehall 4-6551
and every Monday
STRAUSS BROS.
(complete statistical issue—market quo¬
records,
corporation,
banking,
clearings, state and city news, etc.)
tation
Other
Offices:
135
S.
Members
32
Salle
La
St.,
Chicago 3, 111. (Telephone: State 0613),
in
charge of Fred H. Gray, Western
Representative;
1
Drapers'
Gardens,
London, E. C., England, c/o Edwards &
Smith.
Security Dealers Ass'n
Must' Government Controls Be
Board of Trade Bldg.
CHICAGO 4
NEW YORK 4
1944
V! Reentered
by
William
B.
Teletype CG 129 %
To Protect Small Business?
MORTGAGE
second-class matter Feb¬
ruary 25, 1942, at the post office at New
York, N. Y., under the Act of March
8, 1879.
as
Urges I Governmental
CERTIFICATES
Subscriptions. in United States and
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain,
Mexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
Lawyers
Mortgage Co.
N. Y. Title & Mortgage
NOTE—On account of the fluctuations
II
Members
40 Wall
York
New
Stock
is
Exchange
the
that
of
protection
of
element
be
must
made
in
York
New
||
funds.
Teletype
Bell
American
they
NY 1-2033
business, small
than to save,
some
idea
If trade
dealer firms in order to ascertain the true facts.
tom is altered
recovery
Emerson Radio
under the greatest handi¬
not
on
mental
We must pay
vice this debt.
ing
a sec¬
ondary
sense,
some
H.
H.
uance
Burton
contin¬
pf gov-1
ernmental
will
controls
however,
;
them all.
help
governmental
If,
these taxes and ser¬
The bonds evidenc¬
Business
Hotel
Waldorf-Astoria, New York City,March 17, 1944.
Senator Burton
ican
is
*
a
Ill
York
already cast)__ 77
Number Opposed (approx. 83% of those already cast)— 380
REctor 2-5288
Bell
System Teletype, N. Y. 1-2480
Senator Tru¬
Committee investigating
the
National Defense Program.
(Continued on page 1304)
controls
Bartgis Bros.
,v
Small Business And The
Capital
Markets Under MASS)'s 5% Rule
RETURNS FROM NON-MEMBERS
Total Ballots Returned—_____
39
Number Favoring (approx. 6%
2
37
of those already cast)
Number Opposed (approx. 94% of those already cast)—
Jersey Court Upholds Right Of Stale To
Serve Subpoenas By Mail On Dealers
Megowen Educator
Food Co.
.
•*/
■
.
hi.
Small business has lots of friends and
would be
no
ought to have.
big business. In
fact big business is generally made up of an assemblage
small businesses.
Then in addition the big business
of
170 Broadway
Bell System
A complete description of the businesses on
giant motor car manufacturer depends would. be a
whole catalogue of small enterprises located in many diverse
requiring them to appear for examination and give testimony and
One
produce books, before they or their agents could engage in business parts of the country and in many different countries.
in New Jersey. The defendants^—■ .■
V '.%%■
1
.'0..— of the most successful motor car parts businesses/1 know
contended that a personal service business within the State until he started in a deserted barn with an unemployed draftsman,
security
■
required, and that service by
limits
the
of
the
through the
of appearing and
pro¬
submit¬
the facts incidental to the
application. The salient questions
ting
rendering its judgment, the
Court said:"
•
then become whether the proposed
"The inherent difficulty, if not
business is
a
fit subject for licens¬
impossibility, of serving any ing and whether the -legal prin¬
notice upon the defendants within ciple may be given application in
this jurisdiction appears by their certain instance without requiring
the
own
statements.
Baird admits that
he resides in Toronto,
Dominion of
Canada, and has his office there;
all
which
accountant, a metal worker and a few hundred dollars
borrowed from a loan shark at 42 % per annum.
But the
interesting thing about this business is that it
thick of the depression
"The
propriety
of
of 1934 and has made a big success.
Today it is a business of several millions of dollars per year,
or was in 1939-40.
It consisted of a good idea, a few ener-
three denies that
come
one
of
these
he proposes to
within the State and traffic
in securities."
"The
case
ficulty,"
continues
the
decision,
Attor¬
General's position is anal¬
ogous to that of a licensing offi¬
cer, and that the decrees go no
further than to'enjoin a dealer
ney
engaging
Members New York Security Dealers Assn.
25
Broad St., New York 4,
(Continued on page 1324)
the
Red Rock
Court.
"True, control
under our statute is not, either by
the legislation or in practice but
Pacific Coadi
in operation
against all dealers
but the law is applicable to all
dealers and is not, we believe, dis¬
criminatory
It is, we think,
•.
•
American Cable
Bottlers, Inc.
and Radio
White Rock
v
Secubiticl
Warrants
1st
7%
Preferred
•
in
the
within the reasonable exercise of
the
N. Y.
Tel. WHitehall 3-0272
...
loses much of its dif¬
'.'if it is considered that the
from
DUNNE & CO.
subjecting
tinues
No
started in the
manner.
resident and domiciled in
Toronto, and the editor of a news¬
paper there; Edwards that he, too,
there.
•IS
an
dealers in securities is clear," con¬
resides
SECURITIES
security dealers to proceed in
that
Roberts, that he is a British sub¬
ject,
SUGAR
a
dealers,
State was unconstitutional.
In
COrtlandt 7-6190
Teletype NY 1-84
:
shall have gone
cedure
\n #\'
of
.dependent on hundreds of
small businesses for its life. That is, business is all inter¬
Court of Errors and Appeals on March 9 decided other
authority under its Blue dependent.
Wilfred Edwards,
1926
small businesses is * still f urther
that the Attorney-General of the State had
Sky law to serve subpoenas by mail on Clifford
John H. Roberts and John M. Baird, Canadian
"A" & Common^'9
By RAYMOND MURRAY
*
Without small business there
outside
Assn.
457
Number Favoring (approx. 17% of those
mail
Dealers
Memorandum onRequest
Total Ballots Returned
was
Security
Broadway, New York, N. Y.
RETURNS FROM NASD MEMBERS
The New Jersey
.
Members
New
Congress,
member of the
man
Memoon Request
J.F.Reilly&Co.
/Cjur national debt are held .by
''Address delivered at the Amer¬
con¬
trols. In
Hon.
Majestic Radio
cap
'govern¬
by the Association it will affect non-members
complete returns are in. We give below a tabulation of the
returns as they stand at press time (evening of March 29th):
does
i 1 y
Teletype NY 1-1203
America will face her postwar
times what it was before the war.
ture
6, N. Y.
Bendix Home
and her debt will be at least ten
depend pri¬
cus¬
Hence, the polling of both members and. non-members
of the Association. Editorial comment will be reserved until
Broadway
business, labor; and
and
on a r
too.
New
39
policy,
agricul¬
to whether or not the
as
^
likely to wreck, rather
are
American
industry favors such a limitation, the "Chronicle" is conduct¬
ing a poll of all members of the NASD and all nprnmemher
CO!
Members New York Security Dealers Assn.
in her history. Her taxes will
far exceed those before the war
labor
that has arisen amongst deaL
regarding the "5% mark-up limitation rule"
and in order to arrive at
of
American
In view of the controversy
in securities
as
the
as
protection
5% Poll Results
ers
L J. GOLDWATER &
agriculture.
well
Information
*Du Mont Laboratories
postwar
our
WHitehall 4-6330
St., N.Y. 5
Statistical
QUOTED
become the dominant or primary
and. large,
foreign subscriptions and advertisements
-
controls
answer*®
My
Newburger, Loeb & CO
In the rate of exchange, remittances for
SOLD
HAnover 2-8970
The question is to what extent, if any, must government
be continued after the: war to protect small business?
Bank and Quotation Record—Mth. $20 yr.
-
New York
By HON. HAROLD II. BURTON*
U. S. Senator from Ohio
Bought—Sold—Quoted
Monthly Earnings Record—Mt"h.. .$20 yr.
Individual
Complete
Materials
Co.
All local Title Companies
Publications
Of
Encouragement
Enterprise Through Adjustment Of Taxation—Recom¬
mends Early Sale Of Surplus Government Plants And
Issued by
r.
Other
certificates
BOUGHT
Company
Dana
title company
Continued After The War
Harrison 2075
DIgby 4-8640
Teletype NY 1-832, 834
'
Copyright
:i
York
New
Broadway
police
power
Wyeth & Co.
of the State to
•Since 1893'
give freedom of business activity
to security dealers, subject to in¬
quiry at the instance of the State's
ranking legal officer, and to re¬
straint,
upon
security inquiry."
refusal to submit to
•
Hon Rose siterer
Established .1914
Members N.
NEW YORK
.
Members Los Angeles
LOS ANGELES
Stock Exchange
74
Y.
Green
Unterberg&Co.
Members New York Security Dealers Assn.
Security Dealers Asm
Trinity Place, New York 6, N. Y.
Telephone:
Teletype:
BOwIing
C. E.
9-7400
; :V\
NY
1-375
61 Broadway,
New York 6, N. Y.
Telephone BOwling Green 9-3563
Teletype NY 1-1666
Thursday, March 30, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
We are interested in
offerings of
w
High Grade
Public Utility
ACTUAL TRADING
~W
k
•GirdlerjCbfporatipn Stock
;
.
.
and Industrial
."
y' *
t
'
1
n
1
L
^
"
*
*'
*
r'
*
1
1
'
^
1
c
v
l'
' k
»-
.V
<»1
m
Spencer Trask & Co.
25 Broad Street* New
Stpd. Pfds.
Majestic Radio*
Steel
/
„
1
r
it..it>'
1 nr.
y* *■
'' \ •''
j
BANKERS BOND
1
INCORPORATED
18th FLOOR,
KENTUCKY HOME LIFE BLDG.
LOUISVILLE 2, KENTUCKY
Teletype NY 1-5
Long Distance 238-9
Members New York
'% ,'
Magna vox Corp.*
v
^
'
York
Telephone HAnover 2-4300
Wickwire Spencer
r
^
PREFERRED STOCKS
MARKETS
Bos. & Me. Prior &
Bought—Sold—Quoted
,1
■
i,',)
.
Bell Teletype LS ISO
,
'
Moxie Com. & Pfd.
"A"*
Da Mont Laboratories
Crowell Collier Pub.*
jj" '
Trading Markets
Mallory*
Consolidated Textile
ARGENTINA
Polaroid
BRAZIL
P. R.
;
Long Bell Lumber*
V A." T-*tj •r'.*! - *"• •' •* • I'^ J-
•
We
r
announce
.
I-''
- •
.,p'' ' f-\
an
:',V•'
-V-y-.t-v!
1".
the formation of
COLOMBIA
INVESTMENT
RICA
COSTA
PERU
CHILE
Loft Candy
under the
All Issues
DEPARTMENT
management of
Cent. Public Util. 5s
Whelan
Com. & Bonds
N. E. Pub. Serv. $6 & $7 Pfd.
American Export Airlines
United Cigar
'.
CRUTTENDEN & CO.
Vicana Sugar
■
Exchange
Members New York Stock
and Chicago Stock Exchange
Telephone
Dearborn 0500
„
„
Wires
to—-
.
209 South La Salle Street
ChfcagoP35
Carl E. Eyman
Direct Private
East and
PULIS, DOWLING & CO.
West Coasts
Chicago 4, Illinois
New
Members
Curb Exchange
York
x&mmm
25
Ordnance
Auto
.
Carlson
Emerson Radio
'
Arden Farms Co.
Eastern Corporation
Edwaid E. Chase Says
Stromberg
and Pfd.
Botany Worsted "A"
•Brockway Motor
Trust
&
Guarantee
,
Alegre Sugar
Remington Arms
Magazine Repeating Razor
•Great American Industries
•Mid-Continent Airlines '
! ^s:
Berkshire Fine Spin.
Martin Rockwell
74th
Punta
Conn., on Mar.<^
,
17, Edward E.
Chase, Presi¬
dent
of
the
£
is
Son
&
Bird
Sugar
Camaguey
of
the
Maine Securi:
ties
Mach'y & Wrnts.
Tokheim Oil Tank & Pump
Commercial
U.
Co.
stressed
Dearborn
S. Fidelity & Guar.
lawyer to collect it.
We
solicited to contrib¬
to causes and organizations
necessity
of
the
for
-The
a
pay
arid
Securities
Exchanged
Derby
Electric
&
Gas
Illinois Power Div. Arr. and
&
Gas
Serv.
Pub.
Southwest
Conn. Light & Power
Peoples Light & Power
Elec.
Util. Com.
Suffolk Ltg.
&
Pfd.
Queensboro Gas & Elec. Pfd.
Puget Sound Pr. & Lt.
Int'I Hydro Elec. 6s, 1944
•Mass. Power & Lt. $2 Pfd.
United Lt. & Rys. W. I.
Scranton
Springbrook Water
Westinghouse
870
2
Seventh
Park
Ave.
Pfd.
Bid. 4s, 1948
41/s»s, 1957
Ave.
2s
&
3s
Equitable Office Bid. 5s, 1952
165 Broadway 4'/2 s, 1958
Boston Metro Bldg. 3s, 5s, 1950
New Postal Service 5s, 1948
11
W. 42nd St. 4% 5, 1953
?
50 Broadway 3s, 6s, 1946
Broadway Barclay 2s, 1956
500 5th Ave. 6Vzs, 1949
61
Broadway 3&s, 1950
'
f
lease 1 coven
Gleason &
on
the
ground that we can make Disciplinary Proce^(hngs,?
the Most part Sherman Gleason &. Co.
Government
at
would
it
be
^
expense—though
any
hard
to
that
show
cause
ernment,
"An insolvent real
'
against
which
"We all
know that the tax col¬
lecting function has upset all the
old rules.
Business organizations
made
a
munitions; and
Jtt
of
money
on
it, instead of paying 80% in taxes,
the
management went into the
keep a position .book and coproceedings originated in mingling firm with customers' se^
; y-M.;
District No. 14 before the Business 'curittds;;; ^
Being found guilty of these al¬
Conduct Committee of the NASD.
Sherman Gleagon,;wba ■ 'is the leged offenses:-by• the Businessi
Conduct, Committee, of the ^NASP*
.
.
.
stability, taxation promotes a state
of flux in values and in owner¬
If we want to muster our
productive
manpower,
taxation
mobilizes, a horde of bookkeepers.
And if we want only decency, we
ship.
development of oil leaseshy drill¬
efficiently when
ing on shores. The lossefe would
every
business
decisions is be offset by reduced taxes, while
see that taxation has undermined
weighted by a tax problem. Ex¬
profits could be avoided by cap-^ its
/foundations by toning faults
perience is no longer a reliable
ping wells and leaving the oil in into
virtues
and
by" making
guide. In a business where being the
ground.
V;; shrewd and smart what we once
right four times out of five once
"There are numerous examples
called fraudulent.
^
meant success, it may now be
where a business concern, by leg¬
"Let me repeat that this discus¬
necessary to be right every time.
itimate devices of recapitalization
sion is not a bellyache about the
The relative ratio of risks and re¬
cannot
operate
excessive
These
estate corpo¬
in order to keep
Co., was^ charged with
mark-ups,
failure -to
;
iio.n which owesmore than it
simplification ration, having no. assets except ;;a
should:.
of the
exist¬ broad charter and a faint spark ;
^"1' do .not; know what' are the
ing
Federal of legal■? vitalttyp -acquired the long-term aims of our Govern¬
business taxes. profitable business of an aviation
ment.
Also the question, "What
"We are not appliance firm which was subject
are
we, fighting;for?", seems
to
to excess profits tax at the top
presenting ; a
have; many answers.
But what¬
rate.
By offsetting these profits
c o m p 1 a i 111
ever
our
aim
may
be,
and
about
the against the accumulated deficits whatever
it is
for
which we
in the real estate corporation, the
Edward E. Chase
y a m O Unt
Of
fight, I will venture to pre¬
business taxes, tax liability was changed greatly. dict
that
when
our
purposes
which for the sake of sound fiscal Apparently new wealth was cre¬ are made known we shall find the
ated by this "maneuver, for ; thfe
policy should, perhaps
be in¬
present system of taxation work¬
stock of the formerly insolvent
creased during the war," he said.
ing against them. If we are for
increased in value,
"Our aim is to remove or lighten corporation
encouraging individual initiative
and investors were urged to buy
the burden of the complexities, ;to
and small beginnings, taxation has
it in order to share in the oppor¬
eliminate the absurdities, andrto
been put to work in opposition.
created
by
the
smart If we are for
reconcile the conflicts in interest tunity
equality of oppor¬
scheme to * avoid Federal taxes,
between
business as a service
tunity, we find; taxation at work
This deceptive device was openly
to destroy it.
agency and business as a collec¬
I" have even found
termed a tax umbrella.
tion agency."
';o
taxation
operating to increase
Vv'"l have heard
of a company
racial intolerance.
If we are for
Continuing
his
address,
Mr.
Chase said:
proprietor c bt~ S h e rim a 11
ute
the contribution ;for
Xi'r
.
<
sole
•
Gas Pfd.
&
Iowa Southern
Nassau
Pfd.
Service Pfd.
Utilities
American
Cons.
Com.
Warrants
Power
1 ■
Coriimissiori"has< just' issued R re-
,
Amer.
Dealers Association To
have all been
deserves support or
Portland, Me., needs money more than the Gov¬
Bendix Home Appliances
•Consolidated
Presi¬
also
dent
;
^
i
who
Council,
Airlines
Petroleum Heat & Power
Vertientes
Ouster Of NASD Member — Interprets
Annuls
opening the discussion on Federal Tax Simplification at the Right Of National Securities
quarterly meeting of the New England Council at New Haven, Discipline For Overcharging
.
.
National
SEC
In
Car
Auto
v
NASD Against Gleason
Patchwork Of Confusions And
Complexities, And Put Premium On Trickery
Pollak Manufacturing
Hearst Pfd.
Telephone HAnover 2-6286
Holds Present Laws Are
Explosives
Triumph
Business
Should Be Simplified
Taxes
Instrument
•General
Title
''
v
Distilling
•Merchants
New York 4, N. Y.
Broad Street
hie.'was' fined $250. ;
; Gleason. also.; failed do crespond
to a. general ..questionnaire pro¬
mulgated by the same District
C
Conduct Committee and
Business
expelled from the NASD,; ;
Applying to the SEC for a re¬
view of this; disciplinary action!,
was.
Gleason claimed bias on the part
of the
that
Committee which
Conduct
He further contended
tried him.
dealings were conducted
his
accepted stand¬
according to the
ards and customs of the securities
business
basing
retail
prices on
over-the-counter
quotations ap¬
pearing in the Boston newspapers,
that he had
never
sold any secur¬
ity above the newspaper quota¬
tions,
and
that he
invariably
handled the
other
side of the
■
transaction, without a commission
profit, i.e., he sold what the
or
offefed in
customer
tr|tde: at no
to. the customer.,
cost
respect " to
the NASD
questionnaire,
Gleason
claimed
that the
matter be held in abeyance until
With
the denial of his request
the SEC
for
passed -upon his petition
review,'was arbitrary,
■ v
.
Milw. & St. Paul Adj. 5s
Pac. 4s, 5%&, 5l/zs
R. R. of N. J. 4s, 5s
Chic.,
Missouri
Central
N. 'W.-4%®
& Essex 4Vis
Chicago,
Morris
or
wards
has become
incentives
PHONE OR WIRE ORDERS
AT OUR EXPENSE
not
be
Circular
on
expectations can¬
Nothing will
and
computed.
stay put while you fix something
The. complexities create new
else.
pressures, new
*
distorted, and
incentives, new and
unforeseen consequences.
Request
*
transfer of ownership,
changing the business or its abil¬
ity to pay taxes, has reduced
greatly its tax liability. And new
businesses
have
been
organized
solely for the purpose of buying
established enterprises where for¬
•
mer
with¬
former ab¬
'One cannot turn around
SHW
?MSS
m
I
owners
could
achieve
a
tax
dollar
burden
of
Members N. Y. Security Dealers Assn.
120
BROADWAY, NEW YORK 5
REctor 2-8700
Direct
NY
Wires
1-1288®
to
BOSTON—HARTFORD—PHILA.
taxes.
My personal view is that neither
President nor Congress nor Mr.
Willkie has -come
near
to the
amount which should be raised
taxes. We have not even
in
encountering
Business Conduct Committee
The
of the
.
.
some
are
of the
findings and comments
SEC taken verbatim from
its "Release" in this case.
"No data
!•
at
Gleason's
business
that
is
houses
introduced
were
markets in
prevailing
curities
borrowed
which
.
following
extracts,
adequately, as we find when we
study the terms and times on
which our loans are outstanding.
..
if
Federal
status more favorable than they
a
Con¬ From the standpoint of sound fi¬
has been made would otherwise possess.
nance, tax collections are insuf¬
logical by the tax system. It has structive corporate reorganizations
ficient, rand every war loan has
put a premium on trickery and have been
prevented by. the tax been a failure.
; V".- ;:V '
brought into existence a new pro¬
"We ask only for relief from
penalties incident to a sound fi¬
fession of experts in tax avoid¬
the burden of confusions and com¬
ance.
Everything has been turned nancial structure. And while the
plexities of a tax law which is
upside down.
A business sub¬ Government advocates the pay¬
a patchwork of improvisations. In
ject to excess profits tax is ad¬ ment of debts as an anti-inflation
the hope of making a" contribution
vised to charge off its doubtful
that end, this discussion has
measure, the tax system confers to
accounts, because it is more profbeen instituted."
;
itable to lose the money than to
an advantage upon any •corporaout
surdity
.
without
SEC Criticizes NASD And Its
time
the
'the
sale.
did
basis
...
same
employed
of
on
se¬
that he
defenses
on
the
by all other
and size in
of my type
the city
of Boston' and that his
at all times been
'business has
v"
operated according to the cus- '
torn and usage
prevailing in the
securities business in the city of
.,
Boston'; that he took no com¬
missions
in
selling for
cus¬
tomers and made
^
in
less than 1%
net profit were, as far
(Continued on page 1322)
as
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4268
159
*Loft Candy
in:
maintain markets
We
•'
Western Light &
Great Amer. Indust.
WE ARE PLEASED TO ANNOUNCE
:
•'THE ADMISSION OF
Telephone
CANADIAN
Common
-
Moxie Co.
|(- •"
i'
r*'*4'
t
-V
'
>
•',
11'
'*
'
J.F.Reilly&Co.
Ill
York
Security
Dealers
Assn.
1
.l
Teletype.
Bell Teletype
RIT 4488
Phila.
—
WL. |
-
'
'
.
1
STOCKS
IN
I
•
r]
.
vv*
-
I',''
«
•
.
'
,
i
'•
„
HART SMITH & CO
«,
52
WILLIAM
N. Y. WH 3-7253
PH 265
'■«y-.vVr
■
1
BOSTON
Foamite
';?• I American Maize Products
SAN FRANCISCO
Corp.
Eastern
MARCH 24,1944
due
Common
&
1956
Ohio Match
Stock
Christina. Securities Co.
BOENNING &. CO.
1606 Walnut
St., Philadelphia 3
PH 30
Pennypacker 8200
Private Phone to N. Y. C.
Dr. Max Winkler Takes Issue With Sen.
COrtlandt 7-1202
Homsey Co.
BOSTON
Capitol
That
Bank Building
Teletype
There
Bonds
ST. LOUIS
9, MASS.
4330
Penn. Bankshares & Sec. Pfd.
Analysis Of LatihAmearican Defaults
Remington Arms Co.
United Elastic Corporation
Sugar Associates, Com.
Lawrence Portland Cement
Notes
Income Conv. 5 V2 %
Bird & Son
Shawmut
Are
$1,720,000,000
Default—Contends
In
Hugh Butler
Of Latin-American
Only Four South and
Central American Nations Are Not Paying Interest
BS 424
Universal Match
Frederic H. Hatch & Co.
63 Wall
I1 -
Associated Electric
CHICAGO
" Incorporated
Teletype
HICKS & PRICE
refuse
AVzs & 5s
Members
even
New York Stock Exchange
Consolidated Gas Utilities Corporation
Common
Bought
Sold
—
—
803
Landreth
Bldg,
ST. LOUIS 2,
Analysis upon Request
Teletype—SL 486
L. D. 240
231 S. La Salle St.
CHICAGO
Randolph 5686
i
•
a
CG 972
WALL STREET, NEW
b
1
a
Rican
in
bonds
r
obligations, the continuation
of the im¬
of the default in view
in
provement
the
in
these1
Bought
Sold
—
St ix X C o.
Quoted
Bell
Cuban bonds listed as being
80
Dallas Ry.
& Terminal 6% 1951
Cheek
us
on
Members
Louis Stock Exchange
St.
Preferred Stocks
All Texas Utility
Southwestern Securities
of
lege
RAUSCHER, PIERCE&CO.
DALLAS, TEXAS
Houston
M.Y.
Leland
Co.,
becoming
associated with Wyeth & Co., 40
Wall
Street,
New
York
City,
members of the Los Angeles Stock
izing
Mr. McGowan! was
formerly With Gill & Co., special¬
Exchange.
izing in guaranteed and minority
railroad securities. / Prior thereto
of
manager
trading
the
department for Dresser & Escher,
was
with Van Alstyne, Noel &
Co.,
f
-
Pizzini
&
Co.,
Joseph
and
Walker & Co.
Mr. Kaiser
general partner of Kaiser &
a
well
investment
in
known San Francisco
banking firm special¬
State
and
municipal
Other
bonds.
members
Edwin
include
firm
of
R.
the
Foley,
general partner; Walter D. Heller
and Allen E. Meier, special part¬
\
ners.
In addition to the San Francisco
office
in
the
Russ
maintains
firm
an
Building,
office
in
the
New
thah
a
member
the San Francisco Stock
of
Exchange.
maligned
McLaughlin, Baird & Reuss, 1
York City, members
of the New York Stock Exchange,
Wall St., New
have
prepared
an
interesting cir¬
the reorganiza¬
tion potentialities for selected se¬
curities of the Missouri Pacific
cular
discussing
System.
may
be
Copies
had
of this
upon
circular
request from
McLaughlin, Baird & Reuss.
Available On
Request
investments suggests.
well be doubted whether
other category of securities
any
in
dealt
and
utilities
can
industrials,
real estate obligations
or
point to a more
old
satisfactory
jf
fourteen
have
bonds
Ten
are
meeting interest
// "Only four republics
containing
under'
cles
in the series they have been
recent
will
bursements
running in the "Financial Chron¬
made
icle."
ley
Fifth
Merit, in care of Schen¬
Distillers
Corporation,
350
Avenue, New York 1, N. Y.
(Soecial
.Analyzing
the
agreement dis¬
undoubtedly be
bond
row
issues
in
TEL.
Dr. Winkler stated that in the case
and
Peru
the original
B
HANOVER 2-9612
Teletvoe
Y. 1-2123
N.
British Type Investors, Inc. A
Chronicle")
with Weil & Arnold, Canal
ing.
of
default,
to The Financial
H. de
la Verene h*s become associated
with
white.
Sanford.
i
jTnc-- ?ri
I Bank of
White,
,
,,
Hattier
Dunbar
■
&
&
Cn„
..
the Whitney National
New Orleans.
I;;
We
are
■'
..s
-■\ ;•
principals—Brokers
for
our
;
may
'
' | '
trade
account.
Build¬
Mr. de la Vergne was pre¬
viously
the four countries
Quotations Upon Request
Eitingon-Schiid Co. Inc.
NEW ORLEANS, LA.—J.
to,bondholders in the near
of Eolivia
•j
"($1.50 Cum. Conv. Class A Pfd.)
WiSfi Wei! & Arnold
future."
to Mark
"
the 1920-30
J. M.dekVergne 1$
Bo¬
and
let
a
and
Covered Wagon Co.
remain in
default, including
Rica, Ecuador,
NEW YORK
SrOAlt SlidHITIES
obligations, either ac¬
In the case of El Salvador
Copies of this booklet may
upon request by writing
York Coffee & Sugar Exchange
WALL ST.,
SUGAIt
^ernn'n^lv desirous of
repetition of the ex¬
hectic days of
i'ncr
cording to the original loan agree¬
ments or on the basis of recently
complete
a
Stock Exchange
decade."
on
Costa
had
90
York
perience of American investors in
Latin American recb»dties follo*"-
outstanding in the American mar¬
livia,
be
New
Such -changes are vita1
pre
avoiding
performance.
"Of the twenty Latin American
countries,
as
ones:-
& CO.
Members
New
will
long as creditor nations
are willing and able to extend new
credits with-.-.which to discharfo
only
the American market
on
comprising rails,
Peru.
arti¬
F V1IH
-
be able to meet their obligations
Schenley Distillers Corporation
first
enactment
tically reduced, debtor nations
may
have prepared an attractive book¬
the
the
with
existing barriers to the free move¬
ment of-goods and services are
either removed entirely or dras¬
effected settlements.
Reorganizat'n Potentialities
lending countries," Dr.
suggested. "It is more
the deLatin American bonds
coincidence, that
a
It
their direct
also
only dependable remedy
American defaults lies
of policies on
ican foreign
management of Charles C. Horton.
is
k0ller& company
modification
by the United -States Government
of one of the most rigidly protec¬
tive tariffs in our history, Unless
greatly abused foreign bonds,
showing," Dr. Winkler said, "is
much more impressive than past
and
current criticism of Amer¬
ket.
firm
mys¬
permit
the part of
Street.
York at 25 Broad Street under the
The
a
Winkler
and
York Stock Exchange.
Alfred J. McGowan is
in
this
Joining Wyeih S Co.
was
has
Kaiser
not
Latin
for
at the New 7Mlts on
Research at 66 }cbfhmenced
In view of the "much
been
is
he
M.
"The
held
Social
for
12th
West
elected to membership in the New
Alfred IcOowasi Is
*
America
Latin
Exchange llemher
some
do
several years ago.
the City of New York,
at the Round Table on
School
San Antonio
-
spoke
Kaiser A Do. Is How
for
about
plete default.
Dr.
Max Winkler, member of
the brokerage firm of Bernard,
Winkler & Co., and associate pro¬
fessor of economics at the Col¬
SoVestern Pub. SerVi Com. & Pfd.
| reasons
bondholders to exchange their in¬
obligationsi
while less than one-fifth, vestments for new
$277,200,000, is in com¬ which the Cuban Republic created
in part
or
terious
receiving interest in whole or
are
Republic Insurance
Southern Union Gas Common
which
agencies,
$1,346,500,000,
about
the
at
tinued, "but is due largely to the
of U. S. governmental
the
of
amount
laid
be
attitude
Winkler
Max
Pr.
cannot
default
in
American
market in
f
jSystem Teletype—'SL
Teletype NY 1-055
doorstep of that country," he con¬
the
509 OLIVE ST.
,Dr. Pjepper
5! N, Y.
St., New York
DIgby 4-70(50
re¬
lion
outstanding in
SAINT LOUIS
Members New York Stock Exchange
1 Wall
seem inexcusable,
Dr. Winkler said. "The half mil¬
subdivisions,
—
Gude, Winmill & Co.
publics would
governments
and
political
DALLAS
;
and
economic
conditions
financial
-
American
BOwling Green 9-1432
dollar
As for the Colombian an'd Costa
of
g
American
default."/
of Latin
tions
YORK
i
Coupons Missing
•
external
11
o
4
to
amount of
of the entire
half
one
Latin
o n
four-fifths
bound
be
/yf-'ZrZ
These issues amount to well over
than
more
'
that
suggested
would
|||
BONDS
with
experience difficulties eventually.
D r.
declared
"which
bondholders
Winkler,
Max
|p
effected under circum¬
were
stances
March 23 tfiat
MCL
y,
issues
to
them,"
Mason, Tenenbaum, Inc.
:.v
•
interest
.
made
Quoted
-
pay
these loans
on
Bought—-Sold-—Quoted
Chicago Stock Exchange
New York Curb Exchange iAssoc.)
I
Chicago> Board of Trade
to
1-897
WE BUY
■
and that "they
NY
In
Taking direct issue, with Sen; Hugh Butler from Nebraska that
"Latin American countries have $1,720,000,000 of bonds in default''
Company
New York 5, N. Y.
Street
Bell
Whole Or In Part
'
Toronto
Municipal Bonds
NEW YORK
Art Metal Construction
| du Pont,
I
1-395
Montreal
Kaiser & Co.
American-La France-
Preferred
HAnover 2-0980 I
Teletype NY
New York
State and
United Stockyards
St., N. Y. 5
y -irv
Bell
1-2480
NX
MINING
'
THE NEW YORK STOCK EXCHANGE
\\ <■' I
Philadelphia 2, Pa.
Walnut St.,
1529
REctor 2-5288
System
' S
/ 1
'
TO MEMBERSHIP
Philadelphia Stock Exchange
Members New York Stock Exchange
Broadway, New York, N. Y.
Bell
,1
V:' /
Members
Members
New
•
BUCKLEY BROTHERS
*Memo on RequestJ
•
Memo on request
m. Kaiser
Leland
S. R.Melven & Company
2 RECTOR
New
York
STREET
6,
N. Y.
Telephone WHitehall
4-7544
*■
Thursday, March 30, 1944
CHRONICLE
THE COMMERCIAL & FINANCIAL
1302
Specialists in Railroad Securities
United Light
&
© Guaranteed Railroad Stocks
.
Underlying Mtge. Railroad Bonds
Minority Railway Stocks
©
UTILITY PREFERREDS
,
Common Stock
Lease Line Railroad Securities
©
Railways
•
Reorganization Railway Bonds
Selected Situations
When Issued
bought
sold
-
quoted
-
\
.
Arnhold and S. Bleichroeder
:
WHitehall
1
.,-
,
:
<
- «,
,
,
>
t(
••• ^
{^
-J:.
..■.y} > y
4
„,
y:.\,
New York
GUARANTEED
viy
Public Utility
Public Utilities
55
P. S. Com. & Pfd.
Peoples Light & Power
Traded
Other Issues
of
Suggested Post-War Tax Policy
Philadelphia Electric common *>
(currently selling at 20 on the
Stock Exchange), lk share of Del¬
aware
Power & Light common
pro-rata basis, as it is not intend¬
ed to retire more than half the
(14V4 over counter) and $3.75 cash
Consummation of the plan would
(originally $5 was proposed, but
dividend of $1.25 was paid Feb.
14). Total value of the package
would be $37.30 compared with
the current market price of 34 %
mean
CLERKS
..
Good opportunity.
workers.
B."
O.
P.
& Electric,
Power,
Cash
Bond Trader &
common
Total
Bond Analyst
Amount
In
future.
a
On
Write J. C.-l
and
—
Financial
Street
post with
salary basis.
a
Commercial
25
Chronicle,
Spruce St., New York 8, N. Y.
stock
Bookkeeper-Cashier
years' experience
Street, desires
posi¬
plus arrears
55,
but -in
House.
Tel.
Over-the-Counter
with
Assume
REctor
responsibility.
2-9260—Mr.
A.
($53.75).
determining whether to ac¬
an
paid $1.40 of which 200 was
dividend.
Based on the
extra
the yield is 6%
price-earnings ratio 14.6.
In the exhibits filed
by United
Corporation in support of its plan
before
the
SEC,
Philadelphia
Electric's
estimated
earnings for 1944 were
at
$1.44 and for the
post-war'period at $1.80 to $2.00
(based on possible tax reductions
and other adjustments). Delaware
The
New
Investment
York
America
of
tations- to
the
is
sending
Pierre
of
\
2
on
Tuesday,
$67,018,141
and Emil
r
at
earnings were es¬
(against
$1.17 in 1944
a
source
of Federal
rev¬
and to rely upon a flat-rate
ment
to withdraw its support
continue high taxation of
tax
before
1916
ADAM L. GIMBEL
never
President, Saks Fifth Avenue
I read Dr. Lutz's article with
push progression so far
high as those great interest and am in agree¬
ment with his views, and you can
rest assured that I will give it to
to
to adopt rates go
now in use.
\
As Professor Lutz doubtless real¬
izes, there would be much oppo¬
sition to these proposals on the
read:.
others in my organization to
C. A. PHILLIPS
.
parable basis, share earnings of
Philadelphia Electric during the
Kyle, Albert Frank's
Philadelphia Manager
The
office for the past
income taxes have been
the States they have been
gross
10 years.
He
advertising career 28
his
started
used by
1936-1944 had a range of used as a substitute for the sales years ago as a newspaper man in
$2.12-$2.46 based on a. 25% norr tax rather than as a complemen¬ Philadelphia. In 1929, he opened
mal tax (with no excess; profits tary source of revenue. The pro¬ the Philadelphia office of Doretaxes); and a range of $1.64.to posed sales tax, while it would mus & Co., from which he re¬
arouse
great opposition,
would signed in 1934 to become asso¬
$1.92 based on a 40% tax rate. .
ciated
with >A 1 bert
FrankPhiladelphia Electric sold up td probably be easier to administer
tax" which Guenther Law.
22 in January but declined to 20 than the "spendings
has
been
proposed
at various
on news of the distribution plan.
period
In 1940 the old stock
as
39 V2,
and the
Midland Utilities 6s, 1938
Federal Water & Gas
times
by the Treasury.
common
Gilbert J. Postley & Co.
BROADWAY, NEW YORK 6, N. Y.
Telephone DIgby 4-5720
Teletype NY 1-980
to
Chicago
Attractive Situations
The proposal to allow the States
to use net income taxes on busi¬
<•
•
Ward &
Co., 120 Broadway, New
York City, have prepared circu¬
and progressive: net income
on individuals raises inter¬
ness
taxes
esting
)
of
lars
as does also
the proposal to leave inheritance
possibilities
all
cases
kinds
to
the
of
there would doubt¬
attractive
these
circulars,
&
Co.
Collier
Publishing; P. R. Mallory;
General
heavy
new
dustries;
Instrument;
UGI distributed its holdings.
Long
Bell
Great American In¬
Mid-Continent Airlines;
Power
& Light $2
preferred; Majestic Radio; Magna-
because of
in- 1943
"A";
Crowell-
Distilling;
Lumber Co.;
reclassification
the follow¬
Laboratories
Mont
Merchants
The old stock is not strictly com¬
parable with the
on
request:
upon
Du
Massachusetts
the
possi¬
Copies
ing issues, may be had from Ward
,
The effect of the present
which
situations
offer
bilities, the firm believes.
States.
be, as Professor Lutz suggests,
much competition between States
with respect to rates and other
advantages offered to industry.
Such competition between States
might be a potent factor in the
relocation of industry
after the
,
several
on
currently
less
war.
V/ire
were
and to
on
In both
Direct
has
a
taxes
29
itself
tables an¬ ably good. With rates as high as
appointment of Milton T.
earning power of Phila¬ would be necessary if the gross Kyle as manager of the Phila¬
delphia Electric were presented. income tax were used as a major delphia office of Albert FrankAfter adjusting Federal taxes, de¬ Federal
revenue,
there
would Guenther Law, Inc., advertising
preciation accruals, size of plant probably be much more opposi¬ agency, has been announced by
account, new stock basis, and re¬ tion) to the tax than the States Emmett Corrigan, Chairman of
Mr, Kyle has been
Furthermore, the board.
funding savings, so as to place all have encountered.
in
the
few
instances
in which associated with the Philadelphia
years on an approximately com¬
of America,
Schram, President of the
Shields & Co., is Chairman of the
Dinner Committee.
as
A number of detailed
Association
Stephenson, of Gold¬
man, Sacks & Co., is Chairman of
the
Executive
Committee,
and
Richard
De
La
Chapelle,
of
Government
the
alyzing
>
F. Kenneth
effort and by the fact
war
that
grounds of the regressivity of both
Dean, The
State University of
the sales tax and of the gross in¬
Iowa, College of Commerce
come tax.
Despite this objection
The "Chronicle" is to be con¬
plant
acquisition
adjustments). to the gross income tax, it is true
Estimated income from the "pack¬
that on the whole it has been gratulated upon the publication
age" (including 6% on the $3.75 successful in the States that have of such an able contribution. Dr.
cash) was estimated at $2.27 in used it.
In part, this success has Lutz thinks deeply and soundly, f
1944 and $2.95 to $3.30 in the
been due to the low rates em¬
New York Stock Exchange.
.
for the
presumably
Co., President of the Investment
Bankers
program
individual gross income business incomes, the prospect of
general sales tax. In many expansion would be very different
from what it has been in the past.
respects these proposals are in
Professor Lutz is realistic in his
direct
opposition
to
current
trends of thought. It is doubtless treatment of this problem.
true that the proponents of net
and
10
100%
the
The guest speakers will be Clif¬
ford N. Folger, Folger, Nolan &
tax
nor
Hit
be held at
April 11, 1944.
Lutz'
provocative.
sary
invi¬
out
Professor
post-war taxation is forthright and
v
"7
Association
dinner to
a
Hotel
Group
Bankers
timated
,—
has been obscured bjr
employment growing out of
full
dreamed that it would be neces¬
sold as high
1943 range for
$1.24 last year) and $1.64 to $1.84 the new stock was 22-17 (the low
in the post-war period
(before being registered while the stock
was
on
a
"when issued" basis).
deducting
140
amortization of
Power & Light
Hew York IBA Group To
Hold Dinner April 11
University
pally in the calibre of Philadel¬
phia Electric. The stock, now list¬ post-war period: Thus, stockhold¬ ployed.
While theoretically re¬
relinquishing
their United gressive in its results, the rates
ed on the Exchange, was distrib¬ ers
might hope have been so low they have not
uted some months ago to holders preference J stock
of United Gas Improvement (al¬ eventually to obtain their original given rise to serious difficulties
and the yield has been remark¬
though a very small amount, less $3 income rate.
and
i
——
Federal taxes upon saving and im-
Department of Economics, Indiana vestment
income
'
1,348,703
15,703
4,587,750'.
2,206,137-
:
; *$53,86
liquidation stockholders would
•
tion
16
———
at
cept the plan and tender holdings
of preference stock, stockholders
are
naturally interested princi¬
and the
Wall
30
407,904
6,861,094
———
current $1.20 rate
DRAFT EXEMPT
i
—
had previously been in
public and traded
over-the-counter). The company
reported share earnings of $1.37
last year (adjusted to the new
stock basis for the entire year),
Accountant-
----j—
—
callable
is
—---
.
the hands of the
in
10
"5
425,263
—-—
—;
than 3 %,
Over twenty
i
10,615,890
common.—:
share
per
receive 50
with pres¬
since 1915.—Seeks
15/«?
6,707,683
27,287
I—
"The
Available
ent connection. In the
—
common
of Baltimore, compion—:
(Adjusted)
Q>.
MARK C. MILLS
tax
Gas
Gas
fol¬
Percent
Approx. Value
$10,246,138
B warrants
Lehigh Coal & Navigation,
Others appear here¬
appeared in these columns recently.
? ;/
with:
enue
Improvement, common
—
Other CompaniesAmerican Water Works & Electric, common..
Commonwealth & Southern, co'mmon_^_—
Commonwealth & Southern, warrants^—
Consolidated Edison, commonsU~_
United
Consolidated
years
as
common—
3,402,437
Public Service Corp. of N. J., common-—20,166,152
Church St. Annex, N. Y.
Age 43,-22
would be
lows:
Electric,
Philadelphia
455,
Box
Gas
Niagara Hudson Power,
desired.
salary
experience,
"M.
maining holdings
Statutory Subsidiaries—
Niagara Hudson
the
effect to
Mr. Lutz's article, some
of letters have been received commenting on
of which
The most arresting provided a large part of the new
plan and using year-end market- features are the proposals to dis¬ capital which has gone into in¬
Values, United 'Corporation's re¬ card the progressive net income dustry^ Obviously; if the Govern¬
If more than one-half the
Columbia
Apply by letter stating age,
Giving
stock.
ing
preference stock is tendered, the
distribution would be made on a
Cashier's Dept.
banking
distribution of United Cor¬
phia Electric to 155,540 shares, or
about 1.%% of the company's vot¬
exchange
days.
openings
experienced brokerage or
for
time.
this
government—Federal, State and local—which, in his opinion, "ap¬
pears to offer the maximum possibilities of automatic restraint upon
the abuse and the destructive use of the taxing power." A number
^
preference.,
offer would be
effective for ten days, but could
be
extended
an
additional 140
The
at
poration's entire holdings of Del¬
aware Power & Light and would
reduce. its holdings of Philadel¬
for United
CASHIER'S
stock
preference
a
Wall street firm has
New York
Broadway
Corporation on Jan, 27, filed with the Securities and
Exchange Commission the initial step in its voluntary reorganization
In an article bearing the caption "A Post-War Tax Program,"
plan to comply with Section 11 of the Utility Act. An offer is to be which appeared in the "Chronicle" of Feb. 10, Dr. Harley L. Lutz,
made under the plan to the preference stockholders to exchange
Professor of Public Finance, Princeton University, suggested a pro¬
their holdings (up to 1,244,356 shares, or one-half the total amount)
gram for allocation of tax sources between the various levels of
for a bundle of securities and cash—each share obtaining iy2 shares
The United
Central Pub. Util. 5%s
Kansas City
■
Mditional Views Anent Dr. Lutz's
Securities
United Corporation Plan
E. Corp. Issues
Assoc. G. &
——'
1
INCORPORATED
ESTABLISHED 1879
Trading Markets:
STOCKS-BONDS
RAILROAD
—
Teletype NY 1-515
3-9200
all Time's
at
'\x' ' t* •.
.: t
Paine, Webber, Jackson & Curtis
INC.
30 Broad St.
•
■
vox
when
:
Corp.;
-
Brockway
Consolidated Dearborn.
Motors;
:'l
THE COMMERCIAL & FINANCIAL
Number 4268
Volume 159
It is necessary to
Trading Markets in
than
more
ever
before
Western Pacific
Railway Co.
41
RED CROSS WAR DRIVE
Lehigh Vy. 4s 2003
B.&O.CV.4V2S60
Chgo. Alton 3s 49
Chgo. Mil. Gary 5s 48
give
Donate to the
RAILROAD SECURITIES
B. & 0. 4s 44
CHRONICLE
MOP 4s 75
(When Issued)
MOP 5s Various
MOP 5V4s
MOP 5V2s 49
N. Y. Central 4i/2s 2013
C. M. St. Paul 5s 75
C, M. St. Paul 4%s 89
pflugfelder, bampton & r!
Members
61
C. M. St. Paul 5s 2000
St. L. S. F. 4s 50
Chgo. Nw. 4%s 49
St. L. S. F. 4%s 78
C.R.I. 4s 34
C. R. I. 4V2S 60
New
York Stock
St. L. S. F. 6s 36
Grand Trunk
Exchange
New Yoi
Broadway
St. L. S. F. 5s 50
C. C. C. & St. L. 41/2S 77
Railroad Securities
Seaboard 6s 45
The rail market has been in
a
'''
notably jittery condition in recent
implications of the stalemate in Italy and have brought
waves of peaces
>\
1 : ■■■':'
h> : t:
peace psychology authorized last year but payment
has
been furthered by political was held up by court appeal.
It
news
leading to hopes of early is hoped in some quarters that an
defections by various of Hitler's appeal for
additional payments
satellite nations and hints of im¬ will be forthcoming in the rela¬
pending important further consul¬ tively near future. Cotton Belt is
tations of United Nations' leaders. also expected to ask for permis¬
The recurring hopes of an early sion to distribute some cash to
recurring
optimism. This
AICTHURA^
New York 5
TWX-NY 1-1950
PHILADELPHIA
HARTFORD
have
peace
SECURITIES
OF
from
ened
in turn been damp¬
to time by pub¬
time
licized statements
BOSTON & MAINE R. R.
'
'
t
Since the
\
/
,
1940
C
'
'
1
^
/
t'
'
^
"
'
j1
,r
'
K
1.
Fixed charges reduced by
3.
Net current assets increased
i
<
bondholders
as soon as
accomplished:
earnings pr. pfd.
average earnings 1st pfd.
ganizations shortly. It is expect¬
ed that the ICC will present its
to
final
hopes
periodically
dim
weight is. given, marketwise,
the tangible factors of current
peace
$14.51
4.38
13 year average
More complete
and
early future earnings, and the
to
modified
courts
the
unquestionably strong finances of April.-
information available upon request
The
St. Paul
Middle of
plan for
the
Rock Island
by
also
courts
shortly,
plan
submitted to
be
should
the industry.
Also, when the immediate idea
PRICE, McNEAL & CO.
NEW YORK
Interesting Situation
Steady and substantial growth
in earnings of the ''Utility
Group"
have increased the speculative at¬
traction
of
both ;the Prior Lien
stocks of New
and Plain Preferred
My.
-SECURITIES
COrtlandt 7-7869
England Public Service Company
according to a detailed circular on
the
situation
prepared by Ira
Haupt & Co., Ill Broadway, New
City, members of the New
York Stock Exchange and other
York
leading national exchanges. Copies
of this interesting circular may be
had from
Ira Haupt &
Co. upon
for Missouri
an
lators
who
roads will
doubt
the
that
rail¬
participate fully in any
post-war prosperity period. It is
only for short intervals during
sudden waves of peace
request.
psychology
that emotions overshadow reason,
Will
and bearishness
reverse at
Y/
"
l&J?
.
\*
'■
7 '
x'ff } J'.
-
Join Merrill
Chicago 8C Northwestern
DENVER,
Railway Company
Lynch
(Special to The Financial
COLO.
—
Edwin
"
M.
Bosworth and Paul B. Lanius have
Western Pacific R.R. Co.
become
associated
Minneapolis, St. Paul dC
Co.
Merrill
& Beane,
Building. Mr.
Bosworth had been in the invest¬
ment business for himself in Den¬
past 35 years.
Mr.
Lanius has recently been
with
A. D. Wilson & Co. Prior thereto
for
ver
arbitrages
with
Lynch, Pierce, Fenner
First National Bank
Sault Ste. Marie Rwy.
has continued
Chronicle)
he
was
prevails.
Despite the relatively violent
swings that have been witnessed
in recent weeks the general trend
Bosworth And Lanius
small discount
the
in the investment business
for himself in Denver.
dents
of
rails
upward.
and
Most stu¬
rail
a Director
Cartwright,
Viceof Hill, Thompson &
Cartwright
Clermont
President
Co.,
Inc., has been elected a di¬
Ice Company,
rector of Richmond
Richmond, Virginia, and of the
Raleigh1 Ice - &- Coal
Company,
Raleigh, N. C.
* 'A
of
the
porary
that
weakness.
System
Copies available upon request «._■
Mclaughlin, baird & reuss
Members New York Stock Exchange
ONE
TEL.
WALL STREET
HANOVER 2-1355
'
n '
'•
•
A. !
MEMBERS
York Stock Exchange and other
leading Security and Commodity Exchs.
120 Broadway, New York 5,
So.
231
LaSalle St.,
again displayed signs of indepen¬
dent strength. For some time pre¬
viously this group had been more
or less in the doldrums.
Strength
the
in
reorganization group rests
largely on expectations or hopes
specific developments in the in¬
proceedings.
The near
term future is rich in" potentiali¬
dividual
ST. LOUIS RAILROAD
("Old"
Minneapolis & St. Louis 4s 1949
Minneapolis & St. Louis 5s 1962
Iowa
Central 5s
1938
Iowa
Central
1951
NEW YORK 5
TELETYPE NY 1-1310
4s 1935
Frederic H. Hatch & Co.
'
Incorporated
New York 5, N. Y.
63 Wall Street
£
Bell Teletype NY 1-897
Chicago & Eastern III.
Selling
around
10% %
—
3
times
$18.50
yield
to
earnings
1943
about
dividend.
Analysis on request
148 State St.,
Tel; CAP. 0425
N. Y.
:
Boston, Mass.
:
Teletype BS 259
Telephone HAnover 2-7914
Join Townsend, Dabney
Irving Liistdborg; & Co.
(Special to The Financial
FRANCISCO, CALIF. ~
acquisition by Murray
Innes, Jr., of the New York Stock
Exchange membership of the late
SAN
With
the
George C. White, Irving Lundborg
&
[I
Class A Stock
J. M. Kimball And Others
comparisons.
Co., Kohl Building, members of
the San Francisco Stock Exchange,
Chronicle)
jf
;
PORTLAND, ME. — John M.
Kimball, M. E. Callahan, Charles/
C. Chase, and Richard P. Knight
have
become
associated
with
Townsend, Dabney & Tyson, Fi¬
delity
Building.*
All were previ¬
ously with Harry A. Rounds Co.,
of which Mr. Kimball was
Presi¬
dent.
will become members of the New
York Exchange.
Partners in Irving Lundborg
tangible develop¬
ment has been announcement of
One
4s
& Ft. Dodge
Des Moines
board, may be added to the "whenlist shortly.
All of these
potentialities, added to the usual
seasonal hope of appeals for inter¬
est payments,
are calculated to
sustain the recent speculative in¬
terest in the reorganization group
over
the next few months, and
even in the face of probable un¬
favorable year-to-year
earnings
issues)
Minneapolis & St. Louis 5s 1934
issued"
ties for such developments.
•
N. Y.
Chicago 4, 111.
MINNEAPOLIS &
Pacific is considered
To Bs NYSE lomhers
...
closing days of last week
selected reorganization securities
In the
recent
Co.
are
A
Robert F. Mulvany, George
John Otto* Mr. Innes, Harry E.
payment early in April of interest
on
bonds of the Missouri Pacific Jonas, general partners and Alfred
group.
These distributions were P. Otto, a limited partner.
Portland
Terminal
We believe that there are
t
Missouri Pacific
final plan
this
upward
with
further recurring periods of tem¬
confident
are
trend will continue, naturally
REORGANIZATION POTENTIALITIES
for Selected Securities of
a.
securities
of
SutroBros.&Co.
and
early peace fades into the
background there is a greater ten¬ long overdue. Hearings have fi¬
dency to remember the vast back¬ nally been set on the Seaboard
as
this is
log of demand for civilian goods new* securities • and
being built up and the consequent merely a technical matter, with
prospect for a sustained period of the Commission not required, to
good general business in the post¬ rule on the method of allocation
war
period.
Regardless of the of the new bonds, the decision
predictions of Mr. Ford that rail¬ should not be long delayed, Thus
roads will be abandoned entirely, it is possible that two new groups
there are few investors or specu¬ of securities, St, Paul and Sear
of
Established 1921
165 BROADWAY,
■
•
New
,
INVESTMENT
'•
Quoted
conflicting
to an agreement
as to how such payments should
affect security distributions under
more
13 year
—-
Ernsts. Co.
groups can come
Japanese invasion of India, and a the reorganization plan.
In addition to the interest pay¬
more
realistic appraisal of the
still formidable strength of the ment possibilities there are pros¬
German fighting forces as dem¬ pects of completion of interme¬
onstrated on the Italian front. As diate steps in a number of reor¬
§16,896,290
4,100,000 '
8,312,778
Over all Debt reduction
2.
i
>,
readjustment Plan the following has been
of Allied mili¬
tary leaders, set-backs such as the
offer good speculative possibilities
v
."-V*''
Sold
—-
in the Pacific, heavy bombing of Germany, and the in¬
credibly rapid advances of the Russian Armies have in general more
than offset the
BOSTON
Bought
Successes
about,
Broadway
1950
1
*'<
weeks, with short spurts of pronounced strength interspersed with
speculative securities.
Others Traded
COrtlandt 7-9400
'A4 '•!'
•sudden withdrawals of bids for all classes of
So. Pac. 4Vks 68,69,77,81
120
Railway
1st 4s,
Seaboard 5s 31
Geo. Southern 5s 45
Western
Bell Teletype—NY 1-310
Telepftone—Ijjjtgby 4-4933
-
Seaboard 4s 59
Col. & Sou. 4Vgs 80
J.
Securities
New
.
made
certain exchanges which can be
5s, 1961
advantageously ih the
seaboard air line
reorganization, and with this in mind wish to
attention Seaboard & Roanoke
call to your
5s,11931.
1. h. rothchild &
co.
120 broadway
COrtlandt 7-0136
n. y. c.
Adams & Peck
63 Wall
specialists in rails
5
Tele. NY 1-1293
Street^ New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY 1-724
Hartford
possible
vance as
Must Government Controls Be Continued After
,
,
;
(Continued fr<
v
bank,
every
insurance
company,
Church,
trustee and
practically
every family in America. Default
on it would mean depression, un¬
employment
and .. suffering.
It
the door to such a
m
page
1299)
the war and
win
tional
interna¬
secure
This
stability.
and
peace
foreign policy a do¬
makes sound
that the busi¬
so
"2, The proposed
Rationing of the consumption of
operations
tion of price control in
power
an
the interest
totalitarian
adjust the reins of governmental
controls so as to encourage the
scarcity; as^to
quickly
as
fied
possible of
as
of production
so
will
to
as
vigorous
would
open
regimentation of our
make :hs wonder
whether we had won or lost the
reduce
all shortages.
This
materials, the tools, the new in¬
ventions, the skilled workmen, the
skilled supervision, the manpower
for distribution and operation, and
direction of business, we urge gov¬
have
an
here
ample demand
and abroad for our products,
t
calls for
a
flexible flow of capital
It calls
into countless enterprises.
dynamic initiative and effort
such as can be the product only
of individual enterprise., It calls
for a minimum of governmental
for
expenditures for non-productive
supervision and reporting. It calls
for
a
minimum of delay in making
business decisions.
all
It calls above
stability and reasonable
of stability for a sub¬
for
assurance
stantial number of years ahead so
that
private
and
investments
plans
made
be
can
ernmental
encouragement
in¬
the
of
through
enterprise
dividual
This is an
appropriate field of indirect gov¬
adjustment of taxation.
development
such
finance
To
place of the governmental
In the
The first need
ernmental control.
is to reduce governmental expense
so as
to reduce the need for taxes.
materials
and
Senate, of which I
in
its
enterprise of the earnings
the cordial shar¬
the earned proceeds \yith
those who labor to produce them.
The burdens of regimentation and
of
ing
-
tinued
motors
such
items
incidental
Our
primary
pf taxation,
caps
is
obligation
to
ment of, tax
the announce¬
policies
protection of small business
it
was
the national interest because it is
inflationary.
Mr. MacDonald said the union's
brief "demonstrated beyond dpubt
that
the
steel
companies
we
in
are
that
of
wave
"The companies are using the
theory of the so-called inflation¬
ary gap as an argument to keep
wages frozen. This theory has been
(Special to The Financial Chronicle)
Widely publicized and has become
a
major argument in support of
PORTLAND, ME. — Coburn &
Middlebrook are opening a branch wage freezing.
"Some officials and economists
office at 465 Congress St. Associ¬
have tried to panic the country
ated with the; office will be John
with wild predictions that the in¬
V.
Chapman and Frederick B.
flationary gap for a given year
Webster,
both previously with
will
be $40,000,000,000 or $60,Townsend, Dabney & Tyson, and
000,000,000.
Martyn H. Shute.
•
,
Basic commodities
"1.
general inflationary
price rises.
a
new
Open Portland Branch
ticle he desires to make and thinks
viding;
can in no
inflationary.
If
not rise, then the
prices of the products fabricated
with steel will not rise.
Hence,
there will not be the impetus for
Coburn & Middlebrook
manufacturer
a
governmental at¬
profits
called
be
sense
steel prices do
.
.
should have confidence
believes
We believe that the best protec¬
governmental control.
the
in
out of excessive
labor laws.
tion, but to free it, and all other
business, as much as possible from
The Committee, expressly states
"that
far in ad¬
as
impact,
less
tention, consultation and coopera¬
he has the facilities to make pro¬
political
as
of
electric
as
ball bearings.
or
agement of his use of the corpo¬
rate form without unfair handi¬
bad
as
increase would have
an
inflationary
any
tion for small business is to give
critical
some
economic dictator¬
tection against
number
it the benefit of
should be allowed to make any ar¬
ships that can be
dictatorships.
that such
such
to pick up these materials for
unessential reporting, the encour¬
governmental
CIO United Steel Workers denied
David J. McDonald, union sec^
essential retary, said the demand had been
attacked on two fallacious grounds:
civilian articles that will face a
temporary shortage of materials First, that increases in steel prices
would be necessary, and, second,
for their production.
We recognize the need for con¬ that the wage increase is not in
limited
We urge private enterprise
war.
pro¬
for
Labor
War
,
tices
and
noti¬
contract probably
him in the im¬
a
.
the probability of future de¬
velopments. It calls also for gov¬
ernmental protection of fair prac¬
upon
with
a
offered
before
panel,, on March 25, for a
hourly
wage
increase,
17-cent
essential civilian needs and for a
operation of the free de¬
mocracy for which the war is being
fought. The Committee therefore
fall
taxation
of
that
.
be
Board
report
especial
weight upon the small business¬
man and especial attention needs
to be given to relieving him of
risked
be
can
.
.
Arguing
not
sub¬
am a mem¬
annual
recent,
tial civilian needs for
of industry, and
or
Wage Rise
Is Not Inflationary
an
excellent profit position
provide a
stable international
that they can pay the wage in¬
recommends a minimum of such peace, adjust taxes so as to en¬
courage the use of private capital crease without raising the price of
control.
in productive enterprises and as¬ steel products.
We recommend the release of
"A wage increase that is mei
sure impartial administration of
surplus materials even during; the
ber,
ductive
productive private enterprise,
further pro¬
and
contract
a
of
the turning back into
burden of the taxes so as to en¬
courage the investment of large
and small private capital in new
manufacturer has
offered
Declare
constructive said in an Associated Press dis-r
governmental
control
will
be patch from Washington, on March
needed to protect the war indus¬ 25, which also had the following
tries, the production of articles for to say:
all
simpler uses of them that can be
made, especially by small busi¬
ness, while larger and more com¬
plicated uses of them is impossible
because of the military or essen¬
The second need is to adjust the
shortage ; and
govern¬ against monopoly and unfair meth¬
We
mental selection of individual pro¬ ods of trade and competition
ducers. The Truman Committee of believe that the best protection for
small business is to win the war,
the
trol (of
United Steel Workers
On the other hand,
,
production.;
having an acute man¬
.
mediate future."
means
the early inventory and sale of
development of private
initiative,
private
employment, Surplus governmental plants, tools,
materials and supplies not needed
the investment of private capital
:;::iyar;. '4 ;v:
for the war or for essential civilian
V To carry these taxes and this and the development of small, as
requirements.
debt, we must create a condition well as large, private enterprises.
It is in the field of non-essential
of abundance; i We must have a Equally important is the need for
civilian articles that the scope for
production of real wealth in Amer¬ passing from our war economy to
discretion comes.
ica that will substantially exceed our peace economy as smoothly
Here the policy can tend toward
and quickly as possible so that
our production before the war. We
have the high records of war pro¬ there may be no unnecessary mo¬ either a maximum or minimum of
duction, we have the plants, the ment of unemployment and no un¬ governmental guidance and con¬
necessary delays In
.
contract for a war item, or
Our emphasis should be on the
means
.
manufacturing
not undertaken in
are
The
been
shortages exist will be needed.
the
area
"3.
of checking price inflation where
freeing
V. are not required
.
sential civilian items;
particular items of which there is
a
continuing shortage and reten¬
mestic necessity.
Our secondary obligation is to
required
are
for the manufacture of war or es¬
m^y have a long-term
basis for postwar planning.,
nessman-
The War To Protect Small Business ?
we
Thursday, March 30, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1304
that
...
"On the basis of this false fore¬
they then attacked the ef¬
of workers to adjust the
Little Steel formula upward so
cast,
ri^y
U.
/■;;■
This announcement is under
to
buy,
or as a
no
V.h ::i.
■
circumstances to be construed
as an
*'PPp
v
forts
offering of these Shares for sale, or as an offer
that
solicitation of an offer to buy, any of such Shares. The offer is made only by means of the Prospectus,
will be stabilized at
wages
the level of the real rise in war¬
NEW
time living costs.
ISSUE
;
"Significantly, not one of these
has actually materialized."
scares
180,000 Shares
What 2001 Leading Stocks
WiH Do By Best And
Worst Post-War Estimates j
Oklahoma Natural Gas Company
Preferred Stock, Series A
The
4%%
post-war. sales and
share of common
of 200 leading companies
three
different
national
the
earnings
stock
$50 Per Share (Cumulative)
Par Value
Value Line staff has esti¬
mated
under
per
•
income assumptions:
Price $52 per share
Plus accrued dividends from February
since
(an optimistic assumption,
it implies almost full em-;
ployment of the available work¬
15,1944
ing force of the United States).
(which is moderately op¬
offer
Shares in
compliance with
!_.V
these
'
legally
m
1
>
t
•
1
>
>
,
'
/
1
'
1
*
* vj '
'
"
J
.
- -
.
"
'''
•,
,l«l
**
1
I
,l
'
'
,
'
'
" ''
1
\
1
;
\■ .*
»
•'
,,
'
'
"
«,
r
,
1 t-
\
f'
„•
*
*
1
v
" j\ /'V,
'
^c«. v>\
1\
,
'l \ *"
,
"*
.}'*'?<
.
.
BIyth & Co., Inc.
Incorporated
,
v
/
.
,
Kidder, Peabody & Co.
The First Boston Corporation
Corporation
(a pessimistic assumption,
since it implied unemployed of 11
million of the available working
Schoellkopf, Hutton & Pomeroy, Inc. Eastman, Dillon & Co.
E. H. Rollins & Sons
Incorporated
Central Republic
Company
,
Incorporated
■
Estabrook & Co.
;
Graham, Parsons & Co.
'
(Incorporated)
Harris, Hall & Company
A. C. Allyn and Company
White, Weld & Co.
.
Hornblower & Weeks
>
prip/p
.
"
Lee Higginson Corporation
(Incorporated)
»
comparison, there
Pierce, Fenner & Bcane
Paine, Webber, Jackson & Curtis
were
13 million
unemployed in this country).
special introductory offer,
editions,
of the whole Value Line Survey
a
consecutive weekly
four
on
Subscribers
Ratings and Reports
offered at only $5.
receive
will
leading
200
the
all
estimates
<
and
tional
earnings
;
income
post-war;
under
estimates
ings
common
1944
(including
stocks
>
earn-
three
assumptions); two
port
on
the Value Line's Super¬
a
Report on 37
Special Situations.
Account;
Value
Because
Line
the
fee
for
one
month's
service is well below the $85 an¬
Spencer Trask
March30,1944
"
■
'
Co.
&
Tucker, Anthony & Co.
V.
j
na¬
Fortnightly Commentaries; a Re-!
vised
Merrill Lynch,
In 1932, by
of 57 millions.
force
are
W. C. Langley & Co.
$100
of
income
national
A
In
Union Securities
will
billion
,
Stone & Webster and Blodget
*
of our
million
employed after the war).
be
3.
"
*■
it assumes that
six
working forces of 57 millions
securities laws of the respective States.
the
about
but
all
obtainable from, only such of the undersigned as may
that
in
timistic,
are
$120
of
income
national
A
2.
billion
Copies of the Prospectus
$135
of
income
national
1. A
billion
nual
rate,
this
offer
to those who have
a
is restricted
not already had
one-month trial within a year.
Write
to
The
Madison Avenue,
Value
Line,
347
New York City.
Volume
1305
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4268
159
ADVERTISEMENT
1
/'SUGGESTIONS"
TRADING
dealers who are interested in the
to
REAL ESTATE
REPORTER'S
will be pleased to make suggestions
We
MARKETS IN
REPORT
re¬
offering of the $18,000,000 of Oklahoma Natural Gas Co.
sold in open
Tuesday, could
come today if that is in the plans
of the purchasing banking syndi¬
competition
Seligmany Incorporated
Lubetkin & Co.
/'
.Vv
Members New York Stock Exchange
Members New York Security
Members New York Curb Exchange
Bell Teletype
Dealers Association
New York 4
41 Broad Street,
.
HAnover 2-2100
judging
"
-
,
indispo¬
the
by
sition of the successful group to
NY 1-953
discuss
even
or respond
wholesalers in
prices
to inquiries from
the
Real Estate Securities
in
doubt
some
there
investment
award,
the
of
wake
was
ALL
Buying
.
The
ill
CORP.
Ass'n
BROADWAY
NEW YORK 6, N.
Y.
WOrth 2-0510
Grant Building having
40-story
depending
interest,
earnings cumulative to the
extent earned.
A sinking fund
upon
provision calls for the use of 50%
of earnings above 5%
bond in¬
terest for the purchase and re¬
Trading Markets;
Real Estate Bonds
tirement of bonds.
Equitable Ofc. Bldg. 5s
Earnings for each year 1938-1943
have
40 Wall Street 5s
been
in
in¬
full
of
excess
terest
requirements, but for a pe¬
riod
50 Broadway 3s
the
it
deemed
directors
advisable to allow the contingent
Broadway 3y2~5s
interest
Other Issues Traded
be used for
that the funds could
structural
available
and
changes
a
order
in
accumulate
to
make
to
floor
unfinished
full
for occupancy and to
electric
system
and
Too
Many Probes Says
Congressman Cochran
The
House
on
March 27, with
proposals pending to create two
more
special investigating com¬
mittees, received a suggestion that
it set up a committee to co-ordi¬
nate committees and then
its
name
to "the House
change
of Inves¬
tigations."
An Associated Press
dispatch from Washington on that
day,
given in the New York
"World
Telegram" reporting this,
added:
"It's about time we slowed down
this thing of setting up
on
committees
every
time
special
we
turn
around," declared Chairman Coch¬
Mo.) of the Accounts
Committee. "At the rate we are
(D.,
ran
going now, we might as well refer
to the House as the House of In¬
vestigations"
mittee to co-ordinate
committees,"
Representative Bulwinkle (D., N.
C.) declared. "It is unfortunate
that we spend so much time in¬
vestigating."
Representative Cochran was ex¬
pected to elaborate on his views
when the House considers legisla¬
tion soon to create a special 21^
man committee to study postwar
military planning.
special com¬
and investigations already
He estimated that
are
costing . "more than a million
dollars"
a
year
and much of the
work, he said, is "overlapping and
duplication."
Situation Looks Good
teel Products Engineering Comiy
offers interesting possibilities
ording to a memorandum being
tributed
npany,
lis, Mo.
by
m
Scherck,
Richter
Landreth Building, St.
Copies of this memo-
dum may
For Year
1940___
be had upon request
Scherck, Richter Company.
Council
Amounts
funds
been
.
for
....V
'
v..
1943
...
66.19
5,173.02
44,661.50
89,269.18
As at Dec. 31, 1943,
the corpora¬
sinking fund
requirements by expending $28,tion had accelerated
in
excess
of
the
above
amounts
and had purchased in
$327,200 bonds for retire¬
ment, reducing the outstanding
funded debt to $2,918,800.
Now
that all contingent interest accu¬
total
mulations
have been paid,
the
corporation may, if it so desires,
subject to working capital limita¬
tions, use all surplus earnings
above
full
interest
5%
require¬
ments for the retirement of funded
debt
long as bonds may be
purchased at sufficient discount
to
so
make
tical.
ings
such
a
precedure prac¬
On the basis that 1944
are
at the
obtained
the
bonds had acted in the capacity
bids already in
to absorb the
of "agent" with
sufficient
hand
That,
the
would explain why
too,
bankers
such
able
were
to
high
seemingly
a
pay
price,
*
around Detroit and other middle
western points.
had
e
s
s
a
m
n
the bulk of the bonds
were
moved
a bit of
required to clean
up the remaining balance. Mean¬
while the 40,000 shares of pre¬
out, though
work might be
lanthropy."
In his talk, ferred likewise
M.
Allan
Colonel
Pope
Pope
described
phi¬
lanthropy as "big business" and
suggested some of the reasons
why practical businessmen have
indi¬
Dealers here reported that
ject, "A BusiLooks at Phi¬
manner
was
moving in a
satisfactory to the spon¬
sors.
in social
wel¬
the retailers,
to
;
//"First
things
first," and
come
"cocktails" for the Axis, without
rationing, are much more impor¬
tant today than cocktails for our
citizenry.
'-.v'y*
Beverage distillers, just to remind
you, completed conversion of their
distilling facilities to the manufac¬
ture of alcohol for wartime
Investment
hear
.quarters
pur¬
October 8, 1942. That
year ago, although by a
gradual voluntary conversion they
were manufacturing high-proof
wartime spirits as far back as the
fiscal year, 1941. Really, the fig¬
ures are very interesting; let's look
at them.
■/.
poses
on
was over a
,
Back in 1936, the beverage distil¬
lers were turning out 900,000 gal¬
lons of
high-proof spirits. In 1940
multiplied ten times to
9,000,000 gallons. In 1941 they
made 19,600,000 gallons, and that
jumped to 53,900,000 gallons in
1942. In the fiscal year of 1943,
following the 100 % conversion of
the industry on October 8,1942, the
output of high-proof spirits for war¬
time needs leaped to 152,000,000
this
was
gallons.
Today beverage distillers are turn¬
about half of the war alco¬
hol output, the total of which is
expected to amount to 500,000,000
gallons in the twelve months that
will end June 30, 1944.
ing out
And, not all of the alcohol pro¬
duced goes into the manufacture of
war-time gun powder. About half
of the total amount will go
toward
of synthetic rubber
next year. Then it is also needed in
the chemical industry which has
grown so rapidly in wartime.
the making
So, please remember that the
beverage distillers are doing the best
they can to supply you out of their
accumulated reserve whiskey stocks
—in moderation—through the
package store, and through the dis¬
penser. And distillers are continuing
to advertise their brands, informa¬
tively, to keep their names alive.
because they're proud of them.. .so
that you won't forget them in the
happier days to come, when there
wilL be adequate supplies.
thing to
And just one more
Brooklyn Union Gas
re¬
that Brooklyn Union Gas
Co. is engaged in exploring the
fare and health, observing, "The
advisability of undertaking the
old-fashioned notion that business
refinancing of its outstanding in¬
thrives on exploitation and pov¬
interest
active
wholesalers
and ultimately to consumers, has
been curtailed.
/■'./;,• /■/.■ ■'-■/■,/';■•'
;i.
Michigan Consolidated Gas
Yesterday's reoffering of Michi¬
cations
n
experiencing difficulty
getting your favorite brand of
whiskey today, in your package
store, hotel, club, restaurant, or
tavern, perhaps the figures which
follow will give you the major rea¬
son why
the supply of whiskey
from distillers to wholesalers, from
If you are
in
,
may
City, the sub¬
also
firms
pointed
same
level
as
earn¬
1943,
out
that
He
business
themselves entering the
are
—
1940
886.44
York
New
first
come
ports
re¬
member; the price of good whiskey,
itself, has not gone up. You are
paying
crease
.
more,
to
.
.
because of the tax inhelp finance the war.
MARK MERIT
Of SCHENLEY DISTILLERS CORP.
debtedness.
earnings— $20,016.09
1939
14,953.50
1942
of
Council
erty has long been exploded."
1938
1941
•
sinking
have
terms
follows:
as
From
available
indenture
per
that the bank¬
which
firms
ing
general
the
words,
was
gan Consolidated Gas Co.
first
eve¬ mortgage
bonds
and
preferred
Colonel stock, sold in competitive bidding
Pope
dis- on Monday, found investors in a
cussed
with receptive frame of mind.
Robert /P.
Demand was reported as quite
brisk with a goodly portion of
Lane, Execu¬
tive
Director
the
inquiry
originating
from
an
$150.00
other
In
assumption
without
channels.
sales
usual
to
issue
the
place
ning.
5.00
50.00
to
last
of the Welfare
things
,
able
recourse
Sunday
25.00
10.00
Station
WMCA
$25.00
35.00
being
For¬
broadcast
um
over
Contingent interest payments
$1,000 bond have been made
as follows;
the total payment of
$62.50 being made April 1 in¬
cludes $12.50 fixed and $50.00 con¬
tingent interest and cleans up all
contingent interest accumulations.
__
in
Discusses Philanthropy
per
__
the
able to bid for the
iBivestuseht Banker
178,538.36
April 1939
which
in
a
101.0939, for the issue as 2%s. h
be that another group like¬
bonds trade plus accrued interest wise wa£ acting in the capacity
at 2i/2% and go ex the contingent of agent, since a second bid for
interest each Mar. 15. Based on full 2%s,. this one • 100.599, also was
interest
payments the yield at entered.
At any rate, it is the first
present market levels is high and
the prospects for larger sinking
27/g% issue to make its appear¬
ance in the utility field in quite
fund operations give a speculative
a spell, and the Street naturally
appeal.
is agog.
Three other bids, all
naming
a
3%
coupon,
ran
from Yi to more than a full
point above the winning tender.
The group which received the
award of the
180,000 shares of
Col. Allan M. Pope, President preferred stock on its bid of 50 ^
of the First Boston Corporation, for a 4%% coupon is reoffering
was guest speaker on the/Welfare
the stock at a price of $52.
$45,098.83
34,973.66
5,199.04
10,346.02
89,323.00
_____
operation
bonds with full assurance of
property
been quite satisfactory,
Over 5%
1944—
:
Whimsically suggesting a "com¬
mittees
enlarge the
equipment.
These changes have been of con¬
siderable benefit to the property
as the following schedule of earn¬
ings will show reflecting 1942 and
1943 earnings in comparison with
prior years.
Surplus
Earnings
of
earmarks
the
bankers were
1937 has
each year
earnings being sufficient for 5%
interest and sinking fund.
The
reorganization
all
full amount.
denture requirement.
The
record
of
this
since
bore
private
rentable area of about
a
237 car ramp garage, is one of the
outstanding office buildings in Pittsburgh, Pa., the heart of the steel
industry.
'
•
1
' * •
,;'"A voluntary reorganization of the funded debt was effected in
December, 1937, which placed the property in a position to meet
varying conditions. Fixed interest ♦>
charges of 7% were eliminated the sum of about $178,000 would
and
replaced by provision for be available for funded debt re¬
2%% fixed interest plus 2Vz% tirement instead of the $89,000 in¬
contingent
61
tion
Earnings 11%% On Outstanding Bonds
400,000 square feet with a 5-story,
C. H. TIPTON
Members N. Y. Security Dealers
194328194203
—1943
TUDOR CITY UNITS
SECURITIES
2%-5s Paying $62.50 Interest April 1
Grant Building
.
FRED F. FRENCH Stocks
a n d
quarters on whether the bonds
would reach the public.
To such interests the transac¬
By JOHN WEST
First
the
"
We Are Interested In
CORP., NEW YORK
on
cate.
But
Dlgby 4-4950
40 EXCHANGE PL.,N.Y.
article which we hope
will be of interest to our fellow A mericans.
This is number twenty-five of a series.
SCHENLEY DISTILLERS
first mortgage bonds,
SHASKAN & CO.
NOTE—From time to time, in this space,
there will appear an
Public
tail distribution of Real Estate Securities.
SECURITIES
OUR
welfare field in a variety of ways
by providing special services for
their employees.
Colonel
Pope
Conversations
are
said to have
been held by
interested parties
including
least
at
one
the
of
larger of the life insurance com¬
Such
panies.
could
foot
undertaking
an
up
to
is
particularly
well qualified to talk on this sub¬
total
of
around $48,000,000.
ject, for besides being one of our
leading /investment bankers he is
a
FREE-A booklet containing reprints
of earlier articles in this series will be
request. Send a post-card to
me care
of Schenley Distillers Corp.,
350 Fifth Avenuet New York I, N. X,
sent you on
some
also
President
of
the
Welfare
Council, which is a federation of
700 health and welfare agencies
in New York City
"Ready Reference" List
Of Ins. & Bank Stocks
White
& Company,- Mississippi
Valley Trust Building, St. Louis,
Mo., have prepared the current
issue of their "Ready Reference"
Insurance and Bank Stock List,
including
some
interesting
sug¬
gested
retail
offering
prices.
Copies of the list may be had upon
0
request from White & Company.
But
of
the
outstanding
debt
$30,000,000 is non-callable
before maturity, a fact which
would
require
tion with holders
or
enough
attractive
a
negotia¬
proposal
to
prompt
direct
conversion.
However, since no less than
$20,000,000
of the non-callable
obligations matures within .the
next two years, $14,736,000 of first
mortgage 5s on May 1, next year,
it may be that this program will
remain in the background for a
spell, at least.
Two
Stock Issues Help
new
preferred shares for indus¬
trial companies.
-
,
Yesterday brought public sale
of 25,507 shares of
6% cumula¬
tive
preferred stock, $100 par
value, of Champion Paper &
Fibre
Co., with proceeds de¬
signed to finance contemplated
capital expenditures when con¬
ditions permit.
Tomorrow another bank group
will
offer
a
block
shares of series D
of
4%
30,000
cumula¬
of the Min¬
Honeywell Regulator
tive preferred stock
neapolis
-
CO.
Here again the proceeds will be
swelled a bit by the added to working capital for gen¬
marketing of two small issues of eral corporate needs.
This week's volume of new of¬
ferings
was
Thursday, March 30, 1944
& FINANCIAL.CHRONICLE
THE COMMERCIAL
.1306
Planned v&T*ee
Royal Bank of Scotland
Incorporated by Royal Charter 1727
PRIMARY MARKETS
axkets Alter War
REINSURANCE STOCKS
(Continued from first page)
is certain to be some intervention
Huff, Geyer & Hecht
Post
10
Street
Wall
0650
CG-105
NY 1-2875
■
the Government, even if it
nothing more than enforce
the
ordinary police regulations
does
S.
135
Square
by
Chicago 3
La Salle Street
FRanklin 7535
9
Office
HUBbard
3-0783
WHitehall
-\
Boston
5
York
New
67
LOS
LOUIS,
ST.
offenses.
Bonk and Insurance Stocks
for
this week two tabulations which speak
There are presented
as
the 1943 and
industry.
applied
and
1942
reserves,
companies'
Vere
City
Laird, Bissell & Meeds
fa¬
vorable compared with those of
1942, when heavy marine losses
derwriting results were
very
New
Members
York
Stock
Exchange
L.
panies. Twelve companies showed
A.
Gibbs, Manager
slight improvement in net invest¬
ment income over the previous
earned
reported
majority
but the
year,
premium
bankTof
new south wales
(ESTABLISHED
Paid-Up Capital
also
reserves
opportunity
an
were
moderately
higher
then
the
in
get
Liability of Prop._ 8,780,000
£23,710,000
Sept.,
Net Invest.
Income
Per Share
—
Alliance
American
__
Equitable
Bankers
&
—
_
_
...
Shippers.
—
_
—
Association
Franklin
—
_
—
_
—
...
American
—
...
___
Hanover
—
Hartford
Home
Insurance
—
Insurance
National
—
Union
^
—
New
Hampshire
—
1.27
—1.11
1.37
1.62
0.60
5.90
4.72
5.33
5.32
31.73
10.86
38.83
2.32
0.51
1.04
7.10
31.23
0.93
2.34
2.49
3.25
0.14
"1.15'
2.62
2.63
2.48
3.78
4.08
3.95
2.33
3.86
1.59
1.33
0.74
1.08
1.48
1.33
3.21
—0.09
1.75
—0.25
0.85
/
.
1.53
0.20
1.73
0.19
0.32
1.26
1.25
1.07
1.57
0.23
0.61
1,45
1.54
1.22
2.15
.2.41
3.03
3.23
4.06
5.64
0.78
0.85
1.63
1.45
0.85
2.30
4.01
3.66
2.56
2.28
2.56
2.54
2.45
2.88
800
New
5.62
11.00
10.95
16.42
—0.76
2.15
1.96
1.59
River
—
—
—
Washington
Paul
F.
M.-
&
Security (New Haven)—.
Springfield F. & M
—_
States
Fire..
2.33
2.02
1.12
0.24
1.28
6.65
5.60
6.85
7.50
3.52
3.43
3.41
3.97
2.21
0.16
1.12
1.90
0.11
0.54
%
0.62
1.09
1.71
1.78
13.47
13.53
18.01
.
0.16
1.47
1.96
1.85
1.80
—1.05
5.51
5.57
8.37
4.52
0.92
0.60
2.52
2.63
1.60
3.23
0.79
1.71
1.73
—1.28
2.52
2.99
<
adjustment for change in premium reserve equity and
tExclusive of Great American Investing Company.
♦After
TABLE
Premium Reserves
Liquidating Value
Per Share
12-31-42
12-31-43
12-31-42
12-3i-43
12-31-42
12-31-43
$23,265
$26,614
$23,047
$24,456
$53.31
$58.48
3,949
5,019
6,995
6.788
81.22
89.45
—2,967
4,016
2,369
2,494
23.05
2,251
1,887
3,073
2,382
5,312
3,399
26.88
31.89
106.17
119.22
13,041
5,510
23,667
608.17
683.00
65,189
15,259
81,051
5,762
3,467
5,577
23,941
39.83
47.81
51,231
65,272
18.270
9,107
11,584
8,744
10,442
28,292
6,450
79,395
41,563
76,900
9,677
7,004
9,214
16,350
6,982
39,277
49,592
27,033
Aetna
Agricultural
_
American
Alliance
American
Equitable
Bankers
Shippers—
&
Boston
Continental
:—,
...
Fidelity-Phenix
Association
Fire
_
Franklin
__
Great American
Hanover
v-——-—
Hartford
of
Co.
Ins.
—
—
,
Insurance
Home
America--
No.
Insurance
Jersey
7,237
6.167
22,619
Falls
Glens
4,662
69,895
39,305
65,643
-—_—
Fire
Prov.
—
Washington
Paul F.
Security
&
M.__——
United
States
Fire
Westchester
♦Excludes equity
33.35
81.34
LONDON OFFICES:
29
-
either
83.70
BANK
64.00
83.17,
208.16
227.31
32.34
and
5,988
43.50
46.69
NATIONAL BANK
14,248
7,612
3,303
3,907
48,457 ,,.10,506
.
6,642
5,744
26.761
12,008
7,728
4,027
11,001
5,952
12,684
5,572
23,614
21.51
36.23
6,886
15,965
5,412
16,182
6,024
16.557
130.54
137.94
22,293
10,182
12,476
6,909
12,780
6,912
51.26
58.81
29.02
34.87
7,845
in wholly owned investing companies.
,
between industry as
Government should
and comprehensively
whole
tion
through forms of
which
-
■;"*,?
<
-?°
Cairo
LONDON
and 7 King
Cairo
'Sy- '. t:
.
£3,000,000
....
£3,000,000
CAPITAL
FULLY PAID
RESERVE FUND
6
1
y
AGENCY
William Street, E. C.
Branches in all the
principal Towns in
EGYPT and the SUDAN
NATIONAL BANK
of INDIA, LIMITED
the Government in
Colony and Uganda
Bankers
to
Kenya
Head Office: 26, Bishopsgate,
London, E. C. Branches In India, Burma,
Colony and Aden and
Capital
£4,000,000
£2,000,000
£2,200,000
Paid-Up
Reserve
The
Bank
Ceylon, Kenya
Zanzibar
Fund
Subscribed Capital
conducts
every
description
'
at
are
nomic."
poses
wasteful
The
and fric-
competition
and
uneco¬
pamphlet then pro¬
the organization of a kind
of trade associations
of hierarchy
,
In
country, too,
this
we
expect that there may be
may-
similar
principles
believe and specific
conflicts between basic
in
which
we
relations be¬
different in¬ proposals that
will continue to be loss
40.08
56.48
4,765
14,636
the
organized in some form of perma¬
nent association. Otherwise there
261.47
44.65
that
and
a
98.03
241.03
"an
say
be more fully
Traded
147.85
89.94
Office
Commercial Register No.
•r:
for
that it appears
essential condition of
dustries and
24.18
134.65
of EGYPT
Head
doctrine in
tween firms, between
STOCKS
All Issues
be
progress
•
•
E. C.
Street,
Berkeley Square, W. 1
Agency arrangements with Banks
throughout the (J. 8. A.
groups
or
describe as "the unco¬
action
of
competing
firms." They
36.37
5,637
12,160
2,823
43,763
Policy
what they
.
INSURANCE
;
76.53
persons
and; the general
National
in
to
28.73
73.71
Threadneedle
47
which they believe.
.90.16
24.71
18,642
(New Haven)
Springfield F. & M.
urge
concentrated in
ordinated
58.38
8,611
Union
high measure of
power,
.
2,246
7,795
St.
28.64
and
countries.
specific proposals they
tween the
♦26.50
19,740
10,763
1,866
6,378
1,519
_
River
.
♦33.59
2,153
Brunswick
Pacific
24.64
♦24.71
♦22.85
18,123
9,928
1,787
Hampshire
Phoenix
87.05
21.73
1,301
New
North
50.80 ?:
74.89
1,058
New
National
Fire
41.53
9,567
7,343
9,634
16,742
7,225
41,991
49,068
28,855
26,016
—
28,687
7,097
1,891
National
26.71
17,950
vt
by
I can illustrate the kind of in¬
however, th is
consistency I have in mind by
country has adhered *to the belief
reference to a pamphlet that ap¬
that the best economy is a free
economy—that is to say, an econ¬ peared in England about a year
ago.
This pamphlet, entitled "A
omy not controlled or regulated by
concentrated
II
■($000 omitted)-
and
and
banking and exchange business
Industry,"
Trusteeships and Executorships
represented the considered views
public or in private hands, but
also undertaken
of a large group of English in¬
one
in which the citizen, within
dustrial leaders as to the economic
limits, is free to make his own
decisions
and
to
use
his own policies which should be followed and industry committees in which
in England after the war.
The apparently the government will
energy and property as he sees fit.
We have believed that this is the pamphlet begins with praise of participate, to regulate and coor¬
the system of private enterprise dinate this
competition.
Thus, a
economic policy most likely to
and an eloquent description of its
document that begins with praise
lead to full employment, full pro¬
benefits. Toward the end of the
of a system of private enterprise
duction, and an adequate standard
pamphlet, however, the writers ex¬ concludes by proposing what ap¬
press concern about the evil con¬
pears to be the NRA with an old
sequences that may follow from Etonian accent.
" :
Federal income taxes,
Unearned
Surplus
made
very
Traditionally,
3.32
—
Islands,
complete
banking
service
to
investors,
travellers interested in these
efficient
have
private hands.
19.14
•
are
control has been
2.87
1.09
5.61
I
economy
of the economy, a
2.86
—
—
Westchester
1.20
2.26
—0.24
0.88
4.54
—
16.57
.
Zealand,
the Pacific
it offers the most
London,
because wholly achieved, we shall be con¬
fronted
with opportunities
and
be
3.77
0.56
not
of the Government, from
who sincerely believe in the prin¬
early date, has been exer¬
cised to influence the economy or ciple of a free market but who,
in their quite natural desire to
to control some of its operations.
It is also true that in our country, protect their own interests, over¬
at times and in particular areas look. the basic inconsistency be¬
a
2.48
1.32
are
power
6.20
3.84
0.20
2.19
0.18
0.20
—
Phoenix
;
0.12
:
Pacific ' Fire,
United
1.67
0.33
0.00
....
..
Brunswick
Prov.
3.01
1.38
C.57
/
New
St.
4.13
1.16
—0.11
National Fire
North
4.31
1.40
$
5.29
5.42
America-
of No.
Ins. Co.
Jersey
1943
$2.59
1.03
Glens Falls
tGreat
1942
$1.43
0.15
•
Fidelity-Phenix
Fire
1943
$1.75
1.30
—20.37
Boston
Continental
No
0.27
Agricultural
American
Per Share
1942
,
$0.84
—$0.48
largest bank in Australasia.
With over
branches in all States of Australia, in
and
traders
framed in absolute terms.
since the industrial suggestions for its use that should
be measured strictly against the
revolution, at least in Western
standard of our basic belief in a
Europe or this hemisphere, has
free market.
Many of these sug¬
ever been either completely free
or
completely
controlled. The gestions may be made in the name
of order and security; we shall be
economies of different countries
told that they must be adopted
have developed in different direc¬
to protect legitimate investments,
tions. Within particular countries
to prevent economic chaos and to
the economy has not been wholly
avoid catastrophic unemployment.
one thing or the other.
In our
In many cases these appeals may
own
country, for example, the
they
Oper. Profits
$1.91
1943
1942
Name—
Aetna
Total Net
.
Per Share
Profits
:.
drawa
that
realistic
contrasts
These
I
♦Net Underwriting
the oldest
The Bank of New South Wales Is
.
,
George Street, SYDNEY
Head Office:
.
:'V
£187,413,762
ALFRED DAVIDSON, K.B.E.,
General Manager
SIR
that exists in Germany
of all the
TABLE
30th
Assets
1943
Aggregate
of
kind
the
6,150,000
Reserve
-i-
and, in some instances; they
intervene to protect or to
peace.
This may
■
£8,780,006
Fund
condition diffusion of power once concen¬
in which trated is never an easy process.
All in
companies at the year- great majority of cases.
it is impossible to tell where the We shall undoubtedly succeed in
end was substantially above the all, 1943 was a substantially bet¬
But in the interval,
big combinations and the cartels doing it.
1942 year-end figures, as also was ter year for the fire insurance
while the power is still concen¬
end and the Government begins.
liquidating value per share. Un- companies than was 1942.
trated and before its diffusion is
surplus
The
declines.
fractional
1817)
u
Reserve
public works pro¬
on
carry
will
Ltd.
Australia and New Zealand
will doubt¬
not be easy. It is gen¬
governmental
power.
When a erally recognized that the pres¬
sures of war have led to concen¬
planned or regimented economy
gets to its last stage, the distinc¬ trations of power, both in the
tion between public and private hands of Government and of pri¬
power tends to disappear.
You vate interests. The dissolution or
1-1248-49
Trading Department)
Teletype—NY
Bank,
grams
to enter
the market is in effect exercising
Telephone: BArclay 7-3500
Bell
less
Deacon's
Glyn Mills & Co.
past ' we
and local Governments
comers
YORK 5, N. Y.
120 BROADWAY, NEW
experienced by some com¬
Associated Banks:
Williams
large, we have tried to preserve
competitive economy and a free
market.
In the future as in the
exhaustible natural re¬
omy in which power is concen¬
Nevertheless, I assume
trated in the hands of a few pri¬ sources.
vate persons or groups is just as that most American^ still believe
truly a planned or regimented in a free economy and that to that
extent debate about fundamentals
economy as one which is run di¬
rectly by the Government. In fact, is unnecessary. Our task is to ap¬
a
private group that throughout ply the general principle to the
an
industry fixes prices, sup¬ specific problems that we shall
face as we move from war into
presses invention, or denies new¬
Available on Request
equity in subsidiaries.
It will be noted that 1943 un¬
£108,171,956
a
in public hands. This
distinction is illusory.
An econ¬
Bank Stocks
The latter figures are
share.
per
exclusive of the parent
and
/
TOTAL ASSETS
conserve
New York
surplus, unearned premium
and liquidating values
1943
owners
in private or
will be found, for
companies,
same
by
free
whether the controlling power is
leading
Table II
In
made
a
(?,
Charing Cross, S. W. !
Burlington Gardens, W. I
shall probably' deviate
Sometimes attempts are made from this policy in certain re¬
to distinguish between planned spects. For example, the national
Comparative Analysis
profits.
the
are
in
and free economies on the basis of
underwriting
to
that
managers.
of any par-*<
tially or wholly owned subsidia¬
ries.
Federal income taxes have
been
production, price
distribution
E. C. 2
SmithfielJ, E.
64 New Bond Street, W. I
•<
fought for
enterprise and against monop¬
the
to investment,
market
share basis, of thirty well known stock fire
companies, which represent a fair cross-section of the
Earnings are reported for the parent company only, and
thus exclude earnings
49
Government
the
and
1942 earnings, on a per
insurance
3 Bisbopsgate,
8 West
founders of liberalism
directly deviated from this principle. Some
controls or regulates the opera¬ of the deviations, the tariff for ex¬
tions of the market; that is to say, ample, are of long standing; others
But by and
it makes or directs the decisions are more recent.
BEUSEN
themselves and need little explanation or discussion.
In Table I will be found a tabular comparison of
of
extent
line,
Stocks
This Week—Insurance
LONDON OFFICES:
the entire population.
believed that this
policy is most likely to create an
atmosphere in which political de¬
mocracy can
live and flourish;
it was for this reason that the
governmental free
In
On olies and restraints of trade.
one side of the line, the Govern¬
short, we have believed that this
ment intervenes only as a kind of policy was most likely to create
umpire to prevent fraud, force, or the kind of society in which all of
oppression and to enforce rules of us wish to live.
It is true that we have often
fair play. On the other side of the
and
7008
Enterprise
By E. A, VAN
the basis of the nature
on
must be
•
throughout Scotland
of living for
We have also
intervention in the market.
7008
Enterprise
PORTLAND,
6011
PROVIDENCE,
Here the line
drawn
TO
TELEPHONES
Enterprise
HARTFORD,
similar
theft, fraud, and
against
CONNECTING: NEW YORK, BOSTON, CHICAGO,
ANGELES, SAN" FRANCISCO AND SEATTLE
^
WIRE SYSTEM
PRIVATE
OFFICE—Edinburgh
HEAD
Branches
By HUGH B. COX
from
time
to
may be advanced
time by particular
who, quite naturally, are
preoccupied with their own im¬
mediate problems. These conflicts
will pose difficult questions about
the use of the powers of the govment in the transition period. We
are likely to be beset with argu¬
ments, many of them persuasive,
designed to induce the govern¬
ment to exercise powers, given for
groups,
.Volume 159
'the
of
purposes
war,
achieve
to
THE COMMERCIAL & FINANCIAL CHRONICLE
U
Number 4268
jends that in
olize
commerce.
reasoning
vof
as
free
a
|we
For
market.
example,
expect to hear sugges¬
may
tions that
of the war-time
many
^controls over the economy should
;be ; extended for an indefinite
,
period after the end of hostilities.
'Similarly, in the period of transi¬
tion the agencies of the govern¬
ment may be urged to use those
controls for the purpose of equal¬
bar
conditions,
competitive
izing
to
from, an industry
newcomers
;until established concerns have
fully resumed peace-time produc¬
tion, or to recreate competitive
Iconditions as they existed at some
.time in the past prior to the war
{emergency
f
Not all of these arguments will
be without merit;
fhat
It may well be
be nec¬
that the sud¬
some measures may
to make
essary
sure
den elimination of war-time con¬
trols
does
too
not give
the economy
shock.
But the
abrupt
a
exercise
continued
of
these
gov¬
ernmental
powers for an indef¬
inite period after the end of hos¬
tilities,
or their use to
control
competitive
.
immediate
whatever
regulate or
conditions,
advantages
might follow, will not encourage
the future existence and
of
operation
free market in this country.
a
In this
connection, the letter that
Mr. Donald Nelson, Chairman of
the War Production Board, wrote
to Senator Maloney of Connecti¬
cant
March 7, 1944, which has
publicly released, is signifi¬
and encouraging.
Mr. Nelson
says
in that letter that it is his
cut,
on
been
view "that controls should be re¬
laxed whenever they
cease
to be
to war production." He
says:
"If the government
to attempt to prevent new
necessary
also
were
relies upon his own efficiency and
economic resourcefulness?
;in
It
The*
:,
is as bad in one case
* '
''
* '
>
the other.
seems
unlikely
those
that
the suggestions
who may advance
considered the
nature of the power they are ask¬
ing the government: to fexercise.
If a government agency is not go¬
ing to sell a plant because - it
thinks
the
plant will produce
more goods than the market can
take
at
reasonably competitive
prices, that agency must decide
what is a reasonably competitive
price. If it is to withhold goods
will have seriously
from the market because
the sale
Both during the transition from
to peace and afterwards, we
war
shall
be
faced
with
problems
caused by restraints of trade im-i
In the first place, they repre¬
sent the kind of exercise of gov¬
posed by private groups. For the'
ernmental
past 50 years we have dealt with:
the
concentration
of
power
in; signed to
power
that is best de¬
a
truly free
preserve
private hands by the methods pro¬
vided by the anti-trust laws;
It
By enforcing the laws,
the government acts as a kind^of
is sometimes said that these laws
referee.
have not been
of
concentration of economic power
market.
economy.
fair
enforces certain rules
It
punishes prac¬
tices that tend to destroy a free
effective, and that
they have neither prevented : the
play and
The enforcement of the
hands, nor prevented laws, however, does not require
the. government- to substitute its
practices - that, restrain trade and
destroy the freedom of the mar-* judgment for the judgment of the
ket. It is true that at different; managers and owners of business,
in
private
,
market
or to make decisions that should
conditions, it must draw the line times, the laws have been en¬
be left to competitive economic
between those conditions that are forced "with different degrees of
forces.
orderly and desirable and those effectiveness. It may also be true
In the second place, the anti¬
that
are
disorderly and to be that, judged by absolute stand¬
trust laws permit a case-by-case
avoided.
A
government agency ards;-the law may not have been
approach. Their enforcement does
that makes decisions of this kind completely successful. But it can
not
require us to superimpose
is engaged in regulation of the hardly be said that the anti-trust
some rigid and uniform system of
laws have been ineffective.
We
market; it is making decisions
rules upon all situations and all
that in a truly free market should have only to look at the economic
industries.
;
be made by the' traders them¬ systems that exist in England and
on the continent of Europe, par¬
Finally, because the laws are
selves.
enforced through the traditional
The problems raised by these ticularly in Germany, to see that
so
far, at least, this country has processes of the common law,
suggestions can be illustrated by
escaped the extreme forms of in¬ their enforcement is subject to
a hypothetical example.
Suppose
dustrial concentration. A number certain desirable checks and balr
that some enterprising and cour¬
On the criminal side, the
of causes have doubtless contrib¬ ances.
ageous business man, Henry Kai¬
uted to this result. We owe some¬ prosecutor in most cases presents
ser
or
Andrew Higgins,
should
his case to a grand jury; in every
wish to buy a plant because he thing to the variety and extent of
case
a verdict must be
returned
our resources and to the tempera¬
believes that he can sell its prod¬
ment of our people. But certainly by a petit jury unless the de¬
uct and make a reasonable profit;
the existence of anti-trust laws— fendant waives that right.
Thus,
suppose that in reliance upon his
both Federal and State—and the the common sense of the commu-r
own judgment he is prepared to
consistent recognition for 50 years nity serves as a check on the
pay
a fair price for the plant.
prosecutor. On both the criminal
Should the government refuse to by both major political parties of
the soundness of the public policy and equity side of the court, the
make the sale because, in the
embodied in the laws, have been judiciary, an independent, impar¬
judgment of an administrative of¬
substantial causes of our good for¬ tial and coordinate branch of the
ficial, Mr. Kaiser's or Mr. Higgins'
tune.
government,, makes
sure
that
prices would be unreasonably low
In any event, the effectiveness there is fair play as between the
or would create disorderly mar¬
litigants.
keting conditions?
In short, is of the anti-trust laws depends ul¬
This last advantage is some¬
this the kind of decision that timately upon what we do with
would
create
disorderly
competition^ there would clearly
should
be grave danger
ment, or by the business man who
of shackling the
ment, they will provide admirable
tools for preserving a free econ¬
omy. The laws possess a number
of advantages as means of pre¬
venting private restraints of trade.
bined to restrain trade or monop¬
many respects will
:be inconsistent with the existence
1307
be
made
by the govern¬
If
them.
vigorous
we
impartial
should substitute control
we
regulation by an administrative
agency for the traditional proc¬
or
of
esses
the
Doubtless
law.
has the ad¬
vantage of elasticity and some¬
times of speed. It is probably also
true that the members of admin¬
bodies
istrative
kind of expert
not
or
time
*
opment which I would strenously
Oppose.
In my judgment, it is
tall-important to maintain a com¬
I do not be¬
have a democracy
petitive economy.
lieve
can
you
!and at the
same
by the ordinary
Great as these ad¬
at least
in this field, to be outweighed by
the merits of the traditional judi¬
judge.
cial
process.
Furthermore, pro¬
posals for the use of administra¬
tive regulation in this field re¬
quire careful consideration for
another reason; in some
they
may assume
problems
Similar
'
->l
'
I
*-V
h
enforce¬
s
i
/>•<-•<
'
may
arise
With respect to the disposal of
the
assume responsibility for
making managerial decisions.
pire and
It has sometimes been
the
cease.
plants
government agency could give ad¬
visory opinions about the applica¬
tion of the anti-trust laws, or ad¬
approval to particular pro¬
posals made by industry.
This
proposal raises administrative and
vance
legal
be
of
But apart from these
difficulties
discussed
within
or
perhaps even dismantled
destroyed if the operation of
those plants will produce more
goods than the market can take
at reasonably competitive prices,
or will threaten the security of ex¬
or
investment.
isting
may
Similarly,
this paper.
difficulties there is
a
an
what is forbidden to a decision as
to
what must be done
securities Jor sate
,
or a
t
M
\
a
i
.
solicitation oj an offerdo buy securities.
ichigan Consolidated Gas Company
$38,000,000 First Mortgage Bonds, 3V2% Series due 1969
40,000 Shares 4%% Cumulative Preferred Stock
Prices:
be said that the supplies that
108lA% for the Bonds
be sold in such quantities that the
$105.50
will be unduly or im¬
economy
properly disturbed or that chaotic
per
share for the Preferred Stock
plus accrued interest and accrued dividends, respectively,
from March 1, 1944 to the date of delivery.
marketing conditions will follow.
|It is doubtless true that the gov¬
ernment should not be indifferent
the
to
conditions in the market
sells its property; this
it
where
true, if for no other
because the government
will wish to obtain a fair and rea¬
would
be
Copies of the prospectus may be obtained front such of the undersigned {who are among thet underwriters
named in the prospectus) as may legally offer these securities under applicable securities laws.
reason,
and that price will
by market condi¬
tions. Furthermore, situations will
exist in particular industries that
may
require special treatment.
But it is to be hoped that we will
not
embark: upon any general
sonable price
be
influenced
Dillon, Read & Co.
Mellon Securities Corporation
Blyth & Co., Inc.
policy of scrapping plants or ma¬
terials or withholding them from
the market because we believe
Glore, Forgan & Co.
Harriman
prices are too low, or capacity
great, or that competitive con¬
ditions should be controlled and
Smith, Barney & Co.
Union Securities
too
stabilized.
The First Boston
Corporation
Lehman Brothers
Ripley & Co.
Incorporated
Goldman, Sachs & Co.
Corporation
1
It is interesting
to note one as¬
Kidder, Peabody & Co.
W. C.
Lazard Freres & Co.
Langley & Co.
pect of the arguments that will be
advanced in favor of such a pol¬
icy; in substance these arguments
Will justify the exercise of gov¬
ernmental power for some
same
reasons
vanced to
private
Lee Higginson Corporation
Shields & Company
Stone & Webster and
Incorporated
of the
that are often ad¬
justify the activities of
groups
who
have com¬
real danger
agency
March 29, 1944
Ihe government holds should not
compass
that gives an ad¬
vance approval or an administra¬
tive ruling may gradually assume
powers of regulation. The transi¬
tion from a process which
in¬
volves simply an
indication of
that
New Issues
it
cannot
that
the
that the government
Owns should be held off the mar¬
ket,
De¬
partment of Justice or some other
hold
We may
hear it suggested that
expect to
the
will
government
hostilities
when
suggested
that it would be well if the
ivast amounts of surplus property
that
instances
that the govern¬
ment will abandon its role as um¬
time forbid new
competition."
j
i
This announcement is not an ojjer oj
a
vantages are, they seem,
■vj;
fby a government group—a devel¬
gain
possessed
jury
in
experience that is
jcountry with
a regimented econ¬
omy for a long while to come.
Such action would require de¬
tailed planning of all production
the
administrative process
is not in¬
evitable, but it is easy. Adminis¬
trative machinery that begins by
giving advance rulings may end
by approving codes of fair prac¬
tice.,: The country attempted an
times overlooked or minimized by experiment of that kind in the
(Continued on page 1308)
those who believe that in this
will insist upon their
and
field
I
Blodget
.1308
"
.
' THE COMMERCIAL & FINANCIAL; CHRONICLE
/■,
Thursday, March 30, 1944
;
,
Manhattan Bond Fiiiid, Iric'. >
The Board of Directors of
Union Common
UNDERWRITERS
'\ *'
Stock Fund
*
' '
'
*•
'/'•
'
1 r"
,
' r
y*
■"**
<•/
>t
■>.,
>
< V'-i
"?»■'<;. 'V,
for Registered Open End;
•
■
"
.
' :
•
-
■
close of business April 5.1944.
HUGH W. LONG and COMPANY
Incorporated
National
INCORPORATED
CHICAGO
having total assets of more than
JERSEY CITY ♦ LOS ANGELES
•
J
.>
15
v
payable April 15, 1944
share
Investment Companies
LibitD, Abbett & Co.
,
>•
per
to holders of record as of the
.
H
NEW YORK
share and Extraordinary
per
/.Distribution of 10 cents
Prospectus upon request
OF investing companies
,
a
/ tribution No. ,23 of 10 cents
TV
and National Wholesale Distributors
/;/•:/
t
jBond Fund, Inc..
declared" Ordinary Dis-
has
''
•»
\
Manhattan
$40,000,000
Distributors
Exchange Place, Jersey City 2, N. J.
Fundamental Investors, Inc.
Mutual Funds
of
Directors
The
,
Funda¬
Investors, Inc. have
quarterly dividend
No. 41 of 22 cents per share
mental
"Are Stock Prices Too
High?"
Under the foregoing caption, the current issue of Lord, Abbett's
some timely comments on the current position of
v
declared
Hugh w. Long
company
and
INCORPORATED
payable on the Corporation's
capital stock April 15, 1944, /■
'Abstracts offers
15
A comparison is made of the current "spread"
between the yields available on representative stocks and high grade
;bonds at the present time with the spreads which existed at previous
/high points in the market.
i The bulletin reports that as of$
jthe stock market.
high grade bond average
showed a yield of but 2.60%.
This
spread
2%
almost
of
with
spread which existed in 1929 and
A Class of Group Securities. Inc.
Prospectus oh Request
| States the bulletin: "Considered
this
on
have
basis,
stock prices
common
long way to go before they
a
For
yardstick.'.'
example, it is shown that for
the
Dow-Jones
too
are
high by this
Aver¬
to appreciate to a 3%
age
have
rise
to
it
dividends,
present
on
Industrial
210.
to
In
•
basis,
would
other
-
establish a spread of
.40% with the present high grade,
bond yield of 2.60%, the ;:Dow-
■words,
to
:]Jones
have
would
Average
to
^DISTRIBUTORS
Incorporated
GROUP,
Dealers
of
unlisted
in
the
securities
up
60 points, or 43%.
j
*
|V
•
"Railroad Shares Are Still Un¬
dervalued,"
Group in
.writes
entitled, "An Invest¬
Opportunity
in
Discount
ment
Railroad Bonds."
.on
Distributors
covering letter on its
a
folder
•new
The letter goes
to state:
of
discount
years,
on
their
reestablish
"To
relationships
*
.
good
bonds
ad¬
railroad
would have to
average
35%
vance
normal
former
to
40% above pres¬
ent levels."
The
folder
contains
illum¬
an
the past
29 years. This chart
emphasizes the current abnormal
spread in price between these
two
bond groups.
forecast
A
f for
railroad
of
,
Valenta,
charge
of
bonds
Vice-President
the
Investment
in
Re-
| search Department of Distrib-
analysis
of
the
passenger
automobile industry
including the
rubber companies is presented in
Here, too, the conclu¬
sion is optimistic. "The foregoing
summaries appear to substantiate
the expectations that the consum¬
ers durable group as a whole will
exceed the 1937 level of activity
in the post-war period."
*
*
*
Group.
"It
is
our
firm
j conviction," writes Mr. Valenta,
£ "that
j'
*
an
National
upward
revision
in
many
railroad bond ratings ap-
pears
almost
inevitable
during
[" the current year."
Putnam Fund, in its
monthly portfolio folder,
current
gives
report of the annual meet¬
a
held
ing
Tuesday,
securities
their
-
-
ere
$8,629,000,
-
*
•
-
-
.
small dealer
is asking.
difion
#
value
cipal
in
of
7.
March
At
market
current
of
parts
excess
total
the
of
current
over
of the
each
three
prin¬
portfolio
and
cost,
value
$500,000 in
of
was
that
the
excess
the
Fund
of the
capital paid in by investors."
on
♦
Massachusetts
required
March 9,
1944,
Britain
creation of
a
is
Crown.
be
Every
Fund,
in
the
public
shareholder,
required for the
quarterly
dividend
requesting intervention by
Maryland Fund
Prospectuses upon request
ST., BOSTON
State Street Inv. Corp.
Management Associates, Boston, Mass
NEW
YORK,
208 So. La Salle St.
per
holders
of
100
per
share
payable
31, .1944.
Manhattan Bond
.
-
We must not
that follows.
that
choose. If
drift into an economic order
not voluntarily
do
approach the problem of the
period and of the post¬
world with faith in our pur¬
war
pose, we
shall be able to establish
and demo¬
and to maintain a free
cratic economy,
/
FIG Banks Place Be&s.
offering
successful
A
issues
debenture
Intermediate
for
Credit
of
two
the Federal
Banks was
Charles R.
concluded recently by
Dunn, New York fiscal agent
of
two
0.80%
for.
The financing consisted
the banks.
issues, /viz.:, $12,300,000
/ consolidated
debentures,
Fund, Inc.—
■dated April 1, 1944 and. due Oct.
ordinary distribution amount¬
ing to 100 per share and an ex¬ 2, 1944 and $17,755,000 0,90% con¬
traordinary distribution amounting solidated debentures, dated April
to 100 per share payable April 15
1, 1944 and due Jan. 2, 1945.
to holders of record April 5, 1944.
Both issues were placed at par.*
<
Massachusetts Investors Trust—
quarterly distribution of 190
share payable April 20 to
shareholders, of record March 31,
per
(5)
(4)
220
A
Traded
Corporation
BROADWAY,
CHICAGO,
/
Income Shares
Other Issues
ONE COURT
;
Dividend Shares
Quarterly
ANGELES, 634 S. Spring St., (14)
BOSTON, 10 Post Office Square (9)
fought
for the
An
National Securities &
120
of
April 15 to shareholders of record
v
Investment Trust?
Shcuiutihs SnRiiiS
LOS
at
com¬
Investors Mutual, Inc.—A divi¬
March
or
29,
share payable April 15 to
of record March 31, 1944.
tection of the shareholder. Stock¬
NATIONAL
assets
Fundamental Investors, Inc.—A
public interest and the better pro¬
*
but
Dividends
action which, in
,
net
February
ier. Asset value per share rose
during this period from $9.01 to
$10.00 per share.
,
j
whose function it would be to in¬
stitute any civil
his opinion, was
reports
on
are
wars
themselves
transition
pared with $8,477,964 a year earl¬
which would vest formal owner¬
ship
Inc.
$9,623,705
for
we
Investment Report
company
momentous and
We must
we
leading fire insurance stocks.
Massachusetts Investors Second
to
of us
always fol¬
extent any national
as
that
remember
peace
of
issue one
share, fully paid, of each class of
its stock to the Board of Trade,
required
some
many
exhausting as the war.
Investors."
The folder contains a
which
and
feel
not
lic shareholder" to be set up un¬
the
published a new
Insurance
Stocks
summary of the current position
the
toward
will
"Fire
Presently Merit the Attention of
dend
Research
unless we
guard against
inevitable
is
weariness which
lows to
folder,
office of "pub¬
new
supporting
Hare's Ltd. has
an interesting discussion of
contrasting methods of pro¬
tecting shareholders in this coun¬
try and Great Britain. The trend
Great
submit
the
undertaking
in
sents
in
to
data/
♦
Distributors,
the current issue of Brevits, pre¬
would
"the
compared with the public shareholder would be
as
Trading Markets :
dealers,
.
>
1
authorized
,
?
,
The PARKER CORPORATION
,
American
3,690,000 a year earlier.
holders
from
(Continued from page 1307)
NRA; there seems to be:: no gen¬
eral/ enthusiasm for its renewal.
The, American does not like to
have someone else tell him how
to run his business. He does not
like to haye the government do
make it so. We must
der
that
was
be obtained
Harkels After War
unless markets are main¬
lectivized, cartelized, or paternalmarketing tained for these Asecurities?/' the
! istic economy. No economic con-*
lack
facilities.
that meeting Mr. Putnam pointed
Total net assets
may
Free
vs.
,
public has a great deal at stake.,
For example, if brokers have no
incentive for retailing - stocks and
bonds traded in on fthe Syrapuse
out
net
Prospectus
Plannsd
the
over
Association of
Security Dealers, which places a -5% ceiling on "spreads"' between
purchase and sale prices of such securities. They contend that this
limitation leaves them with little or no profit when time and effort
are required to
service the investor,; pointing. out that retail dis¬
tribution of small issues is usually^
difficult because of their limited
Seyeral
lqcal
brokers; when
about
NASD's
5.% / rule
marketability.
v asked
This is a matter in which the argued that it. is not only un-
the
'
utors
disturbed
much
the
future
tailed
George
ratings
City 2, N. J.
15 Exchange Place, Jersey
but tends to favor the it,; JHe. does not, lijcq tq have; his
comparatively few large/firms competitor, do it..
/aim not; suggesting that the
dealing in unlisted securities, at
the expense of thousands of small anti-trust-laws, considered alone,
Dr.
Max
Winkler, consulting
economist to National Securities & securities market; many small in¬ dealers. They expressed the hope wilt insure-a free market- Othei;
vestors in this city and Central that revocation will*' come," either measures and other problems will
Research Corp., discusses "For¬
New York are going to find them¬ jtlirough. KASP or, thq /Securities baye to be considered.
In any
eign and Domestic Demand—Solid
selves without the services which and Exchange; Commission.
i . event, : this is rnot .the kind of
Basis for Peace Economy" in the
have been /pf value.. to them In
Congress and the Administra¬ thing that can-be ^accomplished by
current issue of Investment Tim¬
the past, because the broker can¬ tion, profess to be extremely solic¬ any particular,, statute or mech-,
ing.
Dr.
Winkler's conclusions
not afford to bother with their itous of the welfare of small busi- anism. An attitude of mind is reare
optimistic. * "Unlike the con¬
affairs.
ness/vOn the other hand, NASD, : quirgd^/wo must- wishio? live In a
ditions that
devloped following
According to' local / brokers, it a product of the Maloney Act, in¬ ■free/economy and;we must be
World War I, this time we can
tentionally or unintentionally hits prepared to pay the price and to
anticipate a solid basis for our seems probable that; unless relief
small business/
''
assume' the .burdens of economic
/"
peace economy."
is forthcoming,
small/jot trading
SEC permits 16% or more un- j freedom.
in unlisted Syracuse, stcfcks and
derwritings. "How can an under¬
You sometimes hear it suggest¬
The Broad Street Letter issued
bonds will virtually cease. If such writing job in securities designed
ed that economic trends are in-v
by Broad Street Sales Corp., also
for, over-the-eounter trading be evitable and that we are bound
a situation develops,
countless/in¬
contains a factual article on "Postcarried out successfully in the to drift into some kind of a col¬
War Deferred Demand."
A de¬ vestors may lose money because
63 WALL STREET—NEW YORK
,
higher
was pub¬
lished last week by Mr. Frank
[ L.
of
the article.
inating chart showing the rela¬
tionship in price between high
grade and discount railroad bonds
over
are
of •Governors
Board
.
move
Ceiling
(Reprinted from the Post-Standard, Syracuse; N. Y.,, March,26, 1944)
decree
1939, respectively.
Distributors
National
By J. BURR BELL
Equipment Shares
is
negative
the
/the spread of only .50% and .35%
•which existed in March, 1937 and
September,
HUGHW. LONG »nd COMPANY
Securities Dealers Pretest NASD 'Spread'
Railroad
ron's
contrasted
March
record
31, 1944.
Incorporated
offered a return
4.53%, At the same date, Bar¬
dustrial Average
of
of
holders
to
Los Angeles
)
Jersey City
)
Dow-Jones In¬
the
date
recent
a
634 So. Spring Street
Exchange Place
JfAr|hur Warner & Co.
"
T20
Brood.Woy* New York 5, N Y.
Ye^type NY ) -1.950
-
1944.
'
George Putnam Fund—A divi¬
dend
of
Proceeds,
$50,375,000
due
together
with
other
debentures- becoming
April 1, 1944.
1944
the
share payable
April 15 to shareholders of record
tures
March 31, 1944.
985,000.
150
•
funds, will be used to retire
cash
per
total
As of April 1,
amount
of deben-'
outstanding -will- be
/
$293,-1
THE COMMERCIAL & FINANCIAL
CHRONICLE
Policyholders
99th Annual Statement to its
The greatly
intensified effort of the nation
the dominant, influence
at war has been
on
the activities of the
and
Company , its agents
itself has recognized its
The Company
responsibility to support the
Government in its
are being carried on with such
high standard of performance and serv¬
ice to the policyholders. At the same time
the staff, both in the Home Office and in
tributions to the overall
There is
no
as
wartime
an increasing extent in vol¬
activities both through Com¬
communities.
own
Our
agency
organization, greatly
re¬
war
the public in-
surance were
$452,000,000,
12 per cent over
has adhered to its
sales
policy of investing its funds
in
are
an
the previous
excess
and that it would directly serve
interests of its
These
Insurance
since 1937. Terminations because of lapse
and surrender
In view of the
terest
the Company
has further increased the reserves held to
and great
As of December 31,1943,
effect of low interest earnings,
performance of its outstanding
insurance and annuity contracts.
life
;
,
policy both as to investments and reserves
is, in all the circumstances,, prudent and
proper so far as the protection of its policy^
holders is concerned. It is also clearly in
the best interest of the nation still at war.
the
the
A list of bonds and
are now
our
slightly over one per cent of
Company'^ total assets. The book
the year
obtained
by writing to the New York Life Insur¬
experience of the year was
previous year but it
did not differ greatly from 1940, despite the
fact that in 1943 there were approximately
serving in the armed forces, and it
by the Company is also
available. These booklets may be
The mortality
employees and agents
Company, will be sent upon request.
preferred and guaran¬
teed stocks owned
during
amounted to $22,900,000.
ance
less favorable than the
plicable for 1943. Dividends payable in
1944 amount to $33,600,000.
of
-
value of foreclosed real estate sold
annual dividend scale as was ap¬
Over 1700
opportunities which lie ahea<L
more
which is but
Company declared for 1944 the
The
same
The Company looks
complete report as of December
31, 1943, containing additional statistical
and other information of interest about
A
the real estate
holdings of the Company, acquired under
foreclosure, were valued at $38,250,000,
is convinced that its:
The Company
Company enters its 100th year
earnestly to the responsibilities
forward
At the close of the year total
in force was $7,340,000,000.
the best
policyholders.
strong position.
a
insurance
prevailing low rates of in¬
the
in
the lowest in twenty-
four years.
and in recognition of the long-range
secure
were
was a
April 12, 1944, the New York Life
On
of any year's business
States Government.
believing that it
timely contribution to the economic and
social welfare of the country as a whole
increase of
year.
is to encourage
goods. The Company joined
in this program
during 1943 in the Company's volume of
life insurance in force. Sales of new life in¬
primarily in the obligations of the United
•
unnecessary
service, likewise deserves
much credit for the encouraging growth
by
of living. Its purpose
people to do voluntarily those things which
will divert spendable funds into war bonds,
life insurance and savings rather than into
organizations and individually in
duced
Company,
policyholders, therefore, as well
for the furtherance of
cost
their
safer investment than United
terest, the Company
•
vent an
pany
undertaken by
companies to help pre¬
uncontrolled rise in prices and the
116 life insurance
effort by
war
active part in the coopera¬
an
tive advertising program
unteer war
States Government bonds. For the protec¬
tion of its
it has taken
taking part to
by $341,000,000. At the end of the year
the Company held over $1,608,000,000 of
such securities, an amount equal to 48 per
of the total assets of the
play its part in the fight against an exces¬
sive rise in the cost of living. Accordingly,
the Field, have made substantial con¬
purchase of United States Government
obligations. During the year the Company
increased its holdings of these obligations
cent
pany
Company
effort through the
war
has felt that, in these days of war em¬
ployment and shortages of civilian goods,
it should make every reasonable effort to
is greatly to the credit of a much reduced
staff that the detailed operation^ of the
a
employees, during the year 1943.
continued
^COMPANY
ME ; INSURANCE
i\EWY#0!&
Company,'51 Madison Avenue,New
York 10, N. Y.
$4,500,000 of war claims including deaths of
men in service not caused by an act of,war.
Although the; fife insurance business, by
its very nature,
is
an
important influence
President
against inflation, nevertheless the Com¬
STATEMENT
OF
CONDITION
December 31,1943
LIABILITIES
ASSETS
Cash
on
hand
or
$40,143,483.85
in hanks
United States Government Obligations.
All other Bonds:
,
1
Reserve for Insurance and
1,608,118,620.00
*
and Municipal. .$87,151,528.00
Railroad;..
270,740,382.00
Public Utility. ............. .355,833,476.00
.................
Industrial and Miscellaneous..
Canadian.
...
$38,250,252.37
12,682,462.00
Home Office
Properties,. 1,439,035.45
Interest and Rents due and accrued.........
Deferred and uncollected Premiums (net)........
Other Assets
.
19,892,282.93
21,047,054.89
,
*
Taxes
217,690,939.27
rew York
The N
v
Surplus Funds held for general
contingencies
. . .
'
♦This
reserve
215,224,453.00
is held chiefly against the dif-
ference between Canadian currency
deposited with Government
required by law.
Liabilities which
•.
are
carried at
par.
Assets and
Ay:
It started business on April 12. ISJyy and is incorporated under the laws of the
accordance with the Annual Statement filed with the New York Insurance Department.
Life Insurance Company has always been a mutual company.
of New York. The Statement of Condition shown above is in
if
5,462,031.73
$3,127,731,977.27
Total Liabilities
23,301,281.30
' 30,524,471.25
617,848.28
4,000,000.00 T
Foreign Currencies*..
Miscellaneous Liabilities..,...................,
52,371,749.82
are
i-. i
7,327,639.31
payable in 1944
■
State
".
410,250,896.50
Of the Securities listed in the above statement, Securities
as
33,650,864.00
Reserves for other Insurance Liabilities
74,456,444.00
Reserve for fluctuations in
State authorities
150,063,692.41
.
Premiums, Interest and Rents paid in advance ..
Other Home Office
or
^
Company..»
Dividends payable during 1944
Real Estate:
valued at $46,798,802.00
.$2,647,875,634.00
238,412,778.00
Reserve for Dividends left with the
876,480,696.00
101,091,989.00
guaranteed,... y,.,...
First Mortgages on Real Estate ...........
Policy Flans' tind Premium Notes...... ;,
Properties
,.
on
61,663,321.00
Stocks, preferred and
Foreclosed
due
Supplementary Contracts
State, County
/-
Annuity Contracts.,
Present value of amounts not yet
\i\v.vA<timnwmvAiYi
V
< i' *
'
•
\.
Y
'
■
/
'
\
\
\
-
•
f.
•
.
•
Y^jSJ
j, /
.'•>
>.
.w
Y
.
,
•
Jos. Faroll & Co.
Canadian Securities
Government
Will Be Formed
Provincial
Y
■
v.
-
Public Utility
Municipal
Direct Private
Wires to Toronto &
solved
5
Winnipeg:
Montreal
Toronto
■
•
on
American
will be formed.
Company
will be Barnett Faroll, who will
London, England
Y.
Thomas
and
By BRUCE WILLIAMS
certainly a
mis-characterization, for the bull
market, as we have indicated, has
been
in
the
speculative
low
priced category almost exclusive¬
ly and this is a point, to put it
mildly, not without significance.
Chicagd
the
of
Mr.
Wickham.
Barnett Faroll also
is
a
to note
.
.
war
period.
are
reports
cerning the removal of the entire
industry to Can¬
as
v
of
/;
;:/YY :: v
■
Y';:- '■ YY !
" Y-
GOVERNMENT
past
mass
any
CORPORATION
There
CANADIAN STOCKS
been
made
to utilize
Canada's tremendous industrial
tempt
Moreover, Brit¬
ain is hard put to maintain its
rate
slight
dol¬
A.E.AMES&Ca
present population whereas
Canada's greatest deficiency is
INCORPORATED
TWO WALL
STREET
resources. •
NEW YORK 5,
passing of Jules S. Bache,
N. Y.
2-7231
witnessed in the more conserva¬
of stock. But
tive investment type
does not occur in reason¬
if this
time,' we would be inclined
able
to
adopt
a
conservative
equity
rather
toward
attitude
over-all
.
prices.—-Ralph E. Samuel & Co.
NY-1-1045
summary
in
the general level of business op¬
remains
which
erations,
high."
The bank further states:
"The peak of
production on war
been definitely
passed; however, and there is a
progressive shift, gathering mo¬
mentum every month, toward the
greater
production
of civilian
goods. The latest report of the
Wartime Prices and Trade Board,
dealing with its operations for the
nine-month period ended Dec. 31;
1943, asserts that -the beginning of
the end' of shortages is emerging,
although somewhat dimly so far,
in the picture of civilian supplies.
has
contracts
are
still of sufficient
volume to keep
the primary iron
steel
industries
The operations of
on
are
lower scale than
a
busy*
very
the textile mills
a
Eberstadt & Co. announced
F,
March 29 that the offering of
cumulative
of '5 Vi%
shares
50,000
con¬
of Elliott
stock (par $50)
Co. has been oversub¬
The
scribed and the books closed.
stock
28.
,
was
formally offered March
Proceeds from the sale will
be-applied to the redemption of
1,458-shares of 7 % cumulative pre¬
year
The packing plants have been
ago.
very
such
vertible preferred
its
dated March 22
states. that "the past, month has
witnessed no material change in
and
Elliott Go. Preferred
High Level
Montreal
busy, and there is at present
surplus
a
that
country
of meats in the
it has
been found
possible to suspend the rationing
The production of
of meat.
remains
base
but
the
shrinkage in the output of
gold
metals
continued.
has
high,
drive
mills
are
The
maintaining
newsprint
a
approximately
double
the
January figure but well below the
figure
for February, * 1943,
$19,-
of the
019,000. The flour-milling indus*
until! April 1, 1949, at $20 for the
parity with the
try remains very active."
next five years and at $22.50 for
the
of
view
nearly
$16,229,000,
restoration
U. S. dollar.
In
perspicacity and faith in the fu¬
ture of the Canadian gold-mining
business
War orders
F. Eberstadt & Go. Sells
bala^cfe
Canadian dollar to
.
RECTOR
hot become more well
a rising price trend
rounded and
of
Bank
The
at .the
preliminary
head of the firm of J. S. Bache &
Co., recalls the story of financial
of these days the mar¬
r
"
proach to the whole question of capital.! '
currency
stabilization which, in ^ The new preferred stock is con¬
all probability, would involve, the.
vertible into common stock at $18
to de¬
velop its vast neglected natural'
• '
Y
"free"
the
in
one
may
ket
Continues At
fair scale
ferred stock and 9,852 shares of
of production.
In February, new
present level.y Fur¬ 6%Y cumulativepreferred: stock,
Contracts awarded in the construc¬
thermore, recent politieal 'devel-; the
of
$1,- tion industry were valued at
opments give confirmation to the
be ladded to working
idea of the "key currency" ap¬ 205,000
sues
potentialities.
The
also little trading in
exchange
market;
This absence of spec¬
tacular movement has diverted at¬
tention from this section recently,
but this does not detract from the
attractiveness of the internal /is-lar
j Never before has any real at¬
necessary
was.
fluctuations in the Canadian
immigration
entirely di¬
verted into agricultural chan¬
nels
with very
poor
results,
the manpower
the
situation.
the internal issues and but
almost
been
Thus
•
ing up of the Montreal
suitable
this type of development. In
the
connection.
this
switching operations and ; trans¬
actions resulting from the clear¬
MUNICIPAL
Canada is admirably
has
Both were resident
Schweickart.
Canadian side of the market was
almost" : inexistent
and business
here
was
restricted to a few
PROVINCIAL
the particular industry
parent city or community
H.
Curb Exchange; and Winfield
in
in the mother country.
for
Exchange,
Stock
partriets ih New York of the •dis¬
solving firm of Faroll Brothers.
CANADIAN BONDS
on
the
■
Britain. itself is too ex¬
posed to bombing risks. However,
by far the most ambitious project
yet presented is the "Satellite
town plan," which envisages the
•establishment and maintenance in
Canada and other Dominions of
brand new towns, which would
carry
,
Chicago Board of Trade and Asso¬
ciate member, of the New York
British aviation
ada,
York
New
the
From London, there'f
of discussions con¬
,
YThis is not to say, of course,
that
Exchange
Stock
*
*
member
increasing indications that serious and the firm will have several
thought is now being given to the question of Canadian immigration. memberships in the Chicago Board
The most practical step taken so far was the recent visit to London
of Trade.
;
Y ;
of Colonel Drew, Premier of Ontario, with the object of bringing to
Partners in Joseph Faroll ;& Co:
the attention of British industrialists the opportunities offered in
will be Joseph Faroll, member of
Ontario for the establishment there of British factories in the post¬
encouraging
is
It
Canadian Business
speak.
to be a misnomer or
acquire the New York Stock Exchange membership of the late
Cyril de Cordova; John H. New¬
man, Edward M. Rosenthal; Clin¬
ton S. Beach; Harry H. Wickham;
Canadian Securities
Telephone & Telegraph^issues of this group
on the side lines,
We make this point
because so many investors talk
about the "current bull market
in Wall Street." This seems to us
to
so
Partners in Faroll &
York 5
other
and
have remained
and Joseph Faroll & Co.,
with offices at 29 Broadway, New
York City,
Vancouver
■'
will
cago,
Incorporated
14 Wall Street, New
-v.
should not reach any erroneous
March 31st, and
of
as
quite active in recent days but investors
conclusion as to the type of market
we have been having.
By and large, the speculative activity has been
in the lower priced speculative railroad equities and similar issues;
Investment stocks, to the contrary, have participated hardly at all in
.'.V
be 'dis-- the market's activity or strength—General Electric, Union Carbide,
Share trading has been
April 1st Faroll & Company, with
offices at 208 La Salle Street, Chi¬
Montreal
Wood, Gundy & Co.
;
'•
■
Brothers
Faroll
The Market
§||
Faroll & Co. And
' \ Y'V- .. ; • ,
./ >.
> • Thursday,. March 30, 1944
CHRONICLE
THE COMMERCIAL & FINANCIAL
1310
,V V ' 7 Y
\7
•YYV'.-i-.Y
...v.
f|...
,Y,
....
Victory
the
activities,
Loan
the next five years! It is redeem¬
market,. in able at$54
per
share for five years
Stafford & Co. to Admit
George A. Downey will shortly
It is, therefore, all the more general, is likely to remain quiet
become a partner in Stafford &
gratifying that the Ontario Min¬ with little fluctuation. However, j ect to an annual sinking fund
armistice, Mr. Bache acquired a
ing "Commission has just con¬ the probable call on April 1 for equal to 10% of net incoihe avail¬ Co<, 39 Broadway, New York City,
large holding in Dome. Mines Ltd.
members of the New York Stock
cluded an investigation into the
the redemption on June 1 of ap¬ able for dividends on junior stocks,
and assumed the management of
undesirable activities of certain
the company at a time when, be¬
According to the prospectus, the Exchange. Mr. Downey will act
proximately $26,000,000 Canadian
security firms operating in the
cause of the war, the mines were
as alternate
on the floor of the,
Province of Ontario which have Pacific Railway 5s of 1954 might company intends to apply for list¬
not producing and dividends had
recently r e c e i v e d considerable give rise to a certain volume of ing of the preferred stock on the Exchange for William F. Staf¬
been suspended.
At the end of
ford, Jr.
publicity on this side of the bor¬ replacement operations.
New York Curb Exchange.
1943, however, this company had
der.
The Commission has made
paid $56,000,000 in dividends. This
sweeping
recommendations
for
experience is more than likely to
the safeguarding of the investing
be repeated at the termination of
public which undoubtedly will
This announcement is neither an offer to sell, nor a solicitation of offers to buy,
the
present
emergency
period.
meet with the full approval of the
any of this Preferred Stock.
The offering is made only by the Prospectus.
Although manpower has been di¬
*
Ontario Legislature, and will re¬
?
1 1
\
',r
''
/
1
1 1' », * -Y 11 <• ,
i
' O
Y!
/
verted from the
industry which brought immense
returns.
Shortly after the 1918
and at
$52 thereafter, and is sub.
*
gold-mining in¬
dustry during the war, neverthe¬
less
there
has
been
extensive
prospecting which has uncovered
promising new gold fields, espe¬
cially in the North West Terri¬
sult in the elimination
is
the
possibility
distinct
1
1
is very
the
securities
regard
to
for
past week, there
the
little to be said.
remained steady to firm
■}
\
r
>
Canadian
occupied
with
Paper and Fibre Company
Cumulative Preferred Stock
6%
•
y
(par value $100
-
Taylor, Deale
&
*1
/ *
■
-
canadian securities
Provincial
♦
per
share flat
Copies of the Prospectus may. be obtained within any State from the undersigned
only by persons to whom the undersigned may regularly
*
,\
'
distribute the Prospectus in such State.
WHitehall 3-1874
♦
share)
Company
64 WALL STREET, NEW YORK 5
Government
per
preliminary work
Price $109
g
,
i
r
,
The Champion
The tone
but activ¬
;will far surpass
tant discoveries of oil.
'
25,507 Shares
Al¬
gold
production ity was at a very loiv ebb.
its previous peak though the official opening of the
level.
Also in the post-war pe- Sixth Victory Loan drive is still a
jriod, there are likely to be similar few weeks ahead, the Canadian
developments arising from impor¬ dealers are now almost entirely
.that
"
try in Canada.
With
there
'''
great disservice to the financial
community and the mining indus¬
market
Northern
'
un¬
a
Manitoba.
and
an
desirable few who have rendered
Consequently, with a full resump¬
tion
of
activity after the war,
tories
of
Municipal
•
Corporate
•
^
1 •"V' "
^
".l
<
-
*
t -
r
/
\
v
t.
f
Y':':
.
~
\
iVai;
V'*
/
*"
* >J
;l
W. E. Hutton & Co
Goldman, Sachs & Co.
March 29, 1944.
>l*
■
Volume 159
Number 4268
1311
THE COMMERCIAL & FINANCIAL CHRONICLE
WE MET VITAL WAR NEEDS-KEPT HOMES AND BUSINESS
SUPPLIED
Thanks to pre-war planning and development, we were able last year to
devote one-third of our electric output to war industries. Altogether, we
produced additional services of electricity, gas, and steam to the value
more than $14,000,000 over the previous year.
of
141,321 STOCKHOLDERS. Net income was less, by
more than one million
before, despite the fact that sales of our services
than $14,000,000 higher. Net income is available for distribution
dollars, than the
were more
among
year
all stockholders, consisting of insurance companies,
charitable,
ligious and other institutions, as well as individuals.
fit I UUiUH:.In total revenue
'
.
.
$ 275,620,000
""100.0*
69,376,000
25.2*
65,856,000
from sales of services and other sources
23.9*
Wages, salaries and pensions to
employes, chargeable to operations..
Taxes to
governments
.
.
Materials, supplies and services
WE EARNED LESS BECAUSE COSTS WERE UP. The necessity of
em¬
ploying all facilities to the utmost, plus inability to- obtain new equipment,
brought about large increases in the amount and cost of overhauling,
repair work, and other maintenance operations.
bought fronpjhers
.......
62,719,000
.22.7
Depreciation, of plant and equip¬
Interest
on
debt and other costs
Dividends
on
Dividends
on common
Income and
The
A
$66,000,000 TAX BILL The amount of System
taxes payable, to local,
state and federal governments—not including N. Y. City sales tax which
we must collect from our customers—made a new high in 1943. These
taxes
represented 23.9£ out of every dollar received.';
sum
preferred stock
stock
outgo
of the first four items,
the year's
82.3*
18,446,000
16.7*
10,913,000
4.0*
18,354,000
6.6*
0.4*
$ 275,620,000
Total of above
10.5*
226,816,000
..............
28,865,000
1,091,000
ment
100.0%
$226,816,000, representing the operating costs of
business, amounted to 82.3% of the revenues. This left for the security
holders, whose money made the enterprise possible, $48,804,000, an amount
equivalent to less than 4% on the plant investment of over
$1,250,000,000.
re¬
desirable
Planned
vs.
After Wat
m
crease
with output now more
shows what Amer¬
ican industry is capable of when
it is sure of markets for its prod-
since 1940,
than doubled,
respect to post-war mar¬
With
kets, two extreme sets of ideas are
abroad
in the world.
One set
holds that the major thing we
need to do to create full employ¬
ment is to enable private busi¬
nesses
to
buy and sell in free
markets
\ i,r
restraints
without
competition. This philosophy is
represented in our domestic af¬
fairs by the anti-trust acts and
of
Federal
Trade
through all the various com¬
boards, represents an ex¬
treme development of such gov¬
ernment - controlled
planning to
meet war-time needs.
The full
bined
planning "of investment,
production, and consumption in
the Soviet Union is, of course, the
national
Commission,
the
agreement
program
and
Article
VII of the Lend-Lease
agreements.
This set of ideas is
national
single case of complete
planning of the internal economy
practice.
unofficial state¬
standard ^peacetime
as
thoughtful
A
point of view
ment of the British
which
supports
under
planning
government auspices was made by
Lord de la Warr, one of Britain's
.
speech
production and
consumption is only
Maximum
.
maximum
possible in a world that is socially
and economically organized. Why?
peculiarly American, and we are Why not encourage everybody to
produce as much as they like and
exponent.
The other set of ideas holds that then sell to a free market? Plenty
make
for
cheapness
and
some kind
of administered, will
planned, or scheduled production cheapness will enable everyone to
and exchange
are
necessary
if buy. All very easy, is it not? The
business affairs are to be conduc¬ only answer is that we've tried it
its chief
degree of order.
to be dom¬
England and among Con¬
tinental businessmen who stress
the need for planning by organ¬
izations of private businessmen,
and who minimize the danger of
ted
with
any
concept
This
seems
inant in
resulting monopolistic actions. It
is used by the great international
cartels and the concerns, French,
German,
and American,
British,
make
which
these cartels or
up
with them, to justify
monopolistic activities, in¬
cooperate
their
cluding
would
some
not be
practices
condoned
which
by
and
we
try
it
ning, but with public agencies or
governments participating to in¬
sure that
the general welfare is
safeguarded.
This form of the
idea is present in the farm pro¬
of the U. S., with its governmentally - assisted support
gram
not sufficient
fools to
And therefore we
again.
will not get
production unless
producers in all countries have
security of market and of price
maximum
long term
to enable them to make
plans based on confidence."
The Federation of British In¬
dustries, which supports the pri~.
vate-planning method, gave a de¬
tailed statement of their views in
their
recent
Interna¬
That report
report
on
tional Trade Policy.
said:
world economy
a certain measure of
broad objectives, the
"An, orderly .;
the
exponents of planning. %■
A second variant of the same
idea stresses the need for plan¬
are
know in fact that we
to
presupposes
guidance
on
ultimate
aim
the
to
en¬
The
American
preference
for
normal granary
operations, and in
instead
of
we
post-war problems agree that
cannot establish or maintain
prosperity unless we keep busy—
unless we find ways of providing
useful
work
for
all those who
wish
to
workers to share in
planning
world's great
nations, the United
States has legislated emphatically
and repeatedly against artificial
monopoly
and
artificial
trade
practices. Our laws utterly forbid
devices
domestic
such
the
as
di¬
viding of markets, the allocating
the fixing of prices by
trade groups.
It follows that
no American can intelligently and
sincerely promise you any co¬
of outputs,
tial
the consump¬
full employment.
needs, even for
One alternative
settling the affairs of these ins
peacetime
tion of what they have
,
technological progress which
maintain or accelerate improve¬
for
ments in methods of production,
and incentives to the replacement
obsolete
of
and
plants
to
the
prompt utilization of newly dis¬
covered methods or processes.
markets through
Efforts to plan
>
and low prices :
encouraged expanded uses for the :
product. This would drive some over-production
of the
concerns
into bankruptcy,
finally narrow down the field
to those plants whose production
was
needed
by the
expanded,,
and
market.
A
-
alternative
second
being to encourage
expansion of industry, but not
interfere
conduct of
with
detail.
"international
existing
the day-to-day
.
.
.
action, based on
might
machinery,
taken to examine the
be
problems of
post-war raw materials. . . . Inter¬
national .arrangements for semi¬
competition, restricted or elim¬
inated as 3 result of the war, and
thereafter do everything possible
to maintain
a » healthy vigorous
competition; for it is through comoetition we get the rivalry among
business enterprises which leads
them to produce new and better
things at lower prices for consum¬
ment,
different situation is »
presented by industries where
rest
good times tend to produce an
and less work.
over-expansion in output several »
This is, of course, the classical years later, or bad times tend to v
create an undue contraction.
The i
argument against monopolistic re¬
strictions. ' It may be well, how¬ hog cycle, the housing cycle, and
the ship-building cycle are all ex¬
ever,
to
contrast this general
amples of industries where pure
argument with the alternatives
which the producers and consum¬ competition tends to produce ex¬
aggerated and recurrent swings in
ers may face in particular indus¬
production above and below the
tries in the post-war period. :
point of price equilibrium, with
We
must
recognize that no
resulting losses and instability to
planning for a single industry or
producers, and with idle capacity >■
a single market can cure the dif¬
and workers much of the time. It
ficulties of general depression or
is conceivable some form of plan¬
general
stagnation.
Efforts
to ning might be developed for such
correct conditions of general un¬
industries which would lessen the
employment by shoring up indi¬
specific industrial fluctuations
vidual industries are merely ap¬
without harm, or even with bene¬
plying patchwork to a general fit
to, the rest of the economyproblem. The following illustra¬
7 Then there are the producers of
tions do not attempt to deal with
this general problem of the level primary commodities, such as su¬
Of production as a whole, but gar, wheat, iand cotton, who in
times past have found themselves
rather to consider where advance
faced with a continuing excess /
scheduling may be useful in spe¬
production above what the mar- cific limited circumstances.
kets would take at any price, yet <
I Certain products are produced where low prices . did not reduce
operation in any system of world¬
Our law is
wide controls.
toward
pathetic
is
temperament
call
would
it;"
our
hostile
utterly
it
economic imperial¬
ism, and he is against it."
American
This
unsym¬
and
The average American
toward it.
.
position
is
re¬
affirmed by the National Associa¬
of
tion
Manufacturers,
pamphlet on
Opportunity."
in
its
"Jobs—Freedom—
It recommended
that business should:
".
.
.
Make every, effort to bring
about the ultimate restoration
With
respect to foreign
the NAM report added:
of
trade,
''Fair competition is equally ap¬
plicable whether it concerns do¬
mestic
or
foreign
trade.
Fair
competition under a system of
prices determined in a free mar¬
ket affords the best utilization of
and
human
natural
resources,
capital, engineering, etc. Govern¬
ments cannot be trusted to replace
manufactured goods and manufac¬
construed as an offer to sell or as an offer to buy the securities herein
The offering is made only by the prospectus.
mentioned.
50,000 Shares
private actions may tend to ^un
counter to this general objective
Elliott Company
5V2T0 Cumulative Convertible Preferred Stock
less production, and less
consumption. While the profits of
the
petition may increase immediate
output, but actually reduce the
eventual
volume
and
amount
of
production.
In certain fisheries,
and in sealing, and whaling, ex¬
cessive
catches may reduce the
of
lumber, unrestricted cutting
similarly
threaten
future
lumber
supplies.
Competitive
plus accrued dividends
drilling of oil wells may waste a
large part of the oil which would
otherwise be recoverable. In each
of these cases,
of
the
planned utilization
including
even
restriction of the rate of current
resource;
production,
Crfirscf the prospectus may be obtained from the undersigned only
in it..fci in uhich the undersigned is qualified to act as a dealer
in securities and in which the prospectus may legally be distributed.
sustain
or
may.
serve
to
the ^maximum
secure
yield.
Planning in such cases may there¬
fore be in support ' of long-run
abundance rather than of scarcity.
Whether
such
production
plan¬
ning inevitably calls for sales and
well,
and
should
be privately administered or un¬
der
public .control, raises other
price
E Eberstadt & Co.
the 20's?
ket in
A
quite
may
reproduction rate, or even
destroy the resource. In the case
share
or
be higher, the
of the economy has less goods
industry
can
Price $50 per
individually
,
natural
$50 Par Value
would be for governments,
some
under conditions where pure com¬
planning
as
whether the arrangements
issues not discussed
for war purposes has
expanded far above poten¬
been
either
collectively, to do
planning for the future of
of
full
and
expanded output.
these industries, as to potential
Cartel and monopolistic arrange¬
market needs, stand-by needs for
ments have the avowed purpose
security, purposes, etc.—and then
of maintaining prices of the par¬
to scrap some of the government- f
ticular
industry
concerned
at
owned plants and limit the dis¬
stabler and
higher levels .than
would otherwise obtain — in the posal of the remainder according- •
words of the Federation of British ly. A third alternative would be
to permit the concerns now oper¬
Industries, "to protect both pro¬
ducers and consumers from the ating the plants to plan future ,
loss and risk for which extrav¬ production and sales, either with
or without government participa-.
agant fluctuations of market con¬
tion or control.
Completely free
ditions have been responsible in
recent
times."
Unfortunately, post-war production and markets r
are a possibility in industries of ,
such "protection" to the producers
this type—but a possibility that
can come only from maintaining
present owners or operators would
prices and profits higher than
be
likely to contemplate only
would otherwise prevail
under
with a shudder. Yet planning for .
the same conditions, or from pre¬
such new industries may seriously
venting or .delaying the introduc¬
underestimate the expansibility of
tion
of
technological
improve¬
the market. Who would have cor¬
ments. In either case, the higher
rectly foreseen in 1918 the poten¬
prices mean lower sales; the lower
tial expansion of the auto mar- ;
sales in turn mean lower employ-
...
NEW ISSUE
March 28, 1944.
greatly over-ex¬
capacity
enabling the
of
work,
been
have
panded as a result of the war.
Shipbuilding, aircraft, aluminum,
and magnesium, are cases in point.
Both here and abroad productive
*
.
This announcement is not to be
of
that
produced, in
dustries would be to employ pure
after the
war
has been clearly and of maintaining such a flow
stated by Eric Johnston, of the of buying power as to support competition. That would involve
high activity.
Some knocking down all the govern¬
U. S. Chamber of Commerce, who continued
ment-owned plants to the highest
told the British Chamber of Com¬ emphasize not merely high em¬
encouraging
all
the
efficient bidders,
merce, in London, on
Aug. 18, ployment but highly
employment.
They stress wage plants to try to keep in produc¬
1943:
'
systems which encourage high in¬ tion, and then standing on the
"Virtually
alone
among
the dividual
output, encouragements side-lines and applauding while
competition
the: system of free prices de¬
veloped under the free enterprise
tured
goods in the making of system by central 'economic plan¬
the
parallel farm programs of
which fashion or variety plays a ning' or other artificial measures
most other great agricultural na¬
part might present great which experience shows are dic¬
tions before the war. Our direc¬ large
tated by special, interests rather
tion and advance scheduling of difficulties.
"Industries should examine this than by the general economic wel¬
wartime production by WPB and
fare."
'
War Food Administration, and the problem to see if it is possible or
prices, production goals, and ever-
ion
ers."
leading labor peers, in a
last January. He said:
and in international policy by
trade
the Al¬
lies
or
guidance, except those necessary
to prevent monopoly or restriction
of produc-
tion and exchange among
of coordination and
suring that these arrangements
operate in the common interest."
BRILL EZEKIEL
(Continued from First Page)
industrial
production war-time integration
Council should be entrusted with
the task
Despite this difference of opin¬
on
competition, all students
interna¬
negotiate
International Economic
proposed
MORDECAI JOSEPH
By
to
arrangements with similar
industries in other countries. The
tional
Markets
the
Thursday, March 30,--1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1312
A
will
differenet
exist
in
set
at this point.
of
certain
sufficiently to
In the
perhaps; enough of the
might have starved to
output
the
oversupply.
lost their farms to have
eliminate
long run,
.
producers
death or
balanced
output with demands, but
humans
<
peculiarly unwilling to co¬
operate in economic laws which
work only by regarding them as
are
pieces of machinery which can
laid aside to rust until there
be T:
is
<
Farm pro¬
ducers of these basic commodities
have felt that they were attempt¬
...
need
for them again.
to live by free competitive
principles in a society that was 7:
everywhere else bound or sup¬
ing
ported by monopolies or restricted
prices, and so have turned to do¬
mestic programs of price supports
and
regulated
production
and
even
prices, with international
commodity agreements as auxil¬
iaries to the domestic controls. To
be
fundamentally
supports
helpful,
these
to existing production
accompanied by efforts
need to be
to
shift
surplus
capacity
or
sur¬
plus workers into other lines of
production
where
opportunities
problems
are
industries
the
greater. While the farmers of
world hope that the expand-
7
Volume 159
ing world economy as envisioned
Springs Food and Ag¬
at the Hot
will
Conference
riculture
make
I
This Is America
suppose
fountain
curiously
pen
the inventor of the
must have been a
Lord knows
(Continued from First Page)
Ijiow many years men
tried out his plan in 1889 in a shed had put their brushes, quills and
at Canton, Ohio, with about $300 pen points into the ink, but along
as defensive measures ready to be
put up by friends. The money ran came a fellow who said that he
used to protect farm standards of out in a few months and the little would put the ink into the pen.
Do you remember how, the early
Jiving if and when the need should concern folded up. But my father
learned something and in the next fountain pens used to squirt ink
arise again.
- V'
••
all over one's fingers and clothes?
A
different planning problem year came to Midland, Mich., and
in
1890, with several thousand But who can deny the value and
confronts the many communities
utility of the fountain pen? And
which today are making plans for dollars, started what developed
into our present company. > He I suppose lots of money was lost
maintaining employment after the
made his idea work and in ten before the first money was earned
war, under the stimulus of the
and kept.
C. E. D. and other agencies. Many years was the principal American
Free to Venture
manufacturer of bromine. In those
of these communities are consid¬
And so it was with many things
ten years he gathered around him
ering developing new industries.
group
of, resourceful, hard¬ we call the necessities of Ameri¬
Some may. decide to build new a
cotton mills. Many may decide to working men. ... I imagine our
start the production of plastics. yearly pay rolls far exceed
initiation
the
of these
enter¬
mills
many more new
tablished
may
be
es¬
lines than the
these
in
country can use. If that happens,
period of excessive production,
a
and
price-cutting,
would result before
is struck.
form of
bankruptcy
a new
balance
The alternative is
some
planning—some adding up
proposed to be done in
of what is
each
industry, some matching up
proposed capacity with potential
demand
(even
at
minimum
prices), and some assigning or
prorating of proposed capacity.
Again, by whom or how the job
might be done would influence
the results of the planning.
The
absence
of
planning might in¬
crease the number of disappoint¬
ed towns, bankrupt concerns, 'and
idle plants.
Obviously, any effort
to plan or control such types of
development would be
new
trary
of ■
to
con¬
established, concept
our
free enterprise system.
Yet
it is also true that when we do
a
face the
shift from
enormous
our
expanded war economy to a peace
there will be need for
an exceptionally large volume of
economy,
new
this
new
If too* much of
investment.
is
investment
poorly
planned and unwisely made, we
may have a resulting waste
of
potential resources of extraordi¬
nary magnitude.
The
outlined
only a
small
portion of the situations
that
might be presented.
The
:
cases
cover
problems of public utilities and
under
concerns
have
not
public ownership
touched upon at
been
Even so, the cases
all.
serve
mentioned
to indicate something of
the
complexity of the problem of free
versus
planned
markets,
and
something of the difficulties that
may be encountered in trying to
apply any single rule to their so¬
lution.
Where
we
do decide that a par¬
justify
does
situation
ticular
*
-•
-
or
necessitate some form of concert-,
ed
production
or
market
plan¬
that
involves
ment of
anism
an
to
the establish¬
administrative mech¬
collect the necessary
facts and reach and administer
necessary
kets
the
decisions. Planned mar¬
administered
are
markets.
The administrative mechanism, or
had
man
a
an
affected
ers
by
its
operations,
public accountability for
its actions. If it is set up under
without
democratically-elected bod¬
for full and complete explana¬
ies
to put up a few
dollars, that failure did
got his friends
hundred
planning
,
by
an
because
had
ideas
I don't suppose any
often as Edison did.
one
his friends put their
ideas—and
they
as
their own, without coer¬
according to their private
judgments.
did it
on
cions,
ANNUAL REPO
(AND SUBSIDIARY COMPANY).
YEAR 1943
Consolidated Income Account
failed as
Gross
There was no
government in those days to tell
him whether his electric light or
socially
were
•
to take
necessary,
.
point
43,051,426
.
$ 14,878,243
Interest and Other Deductions
Net Income
.
5,273,452
.
$
.
9,604,791
'
■;,u:'
; V-
'■
v ■•./
•
Summary of Consolidated Earned Surplus
Balance, January 1,
1943
.
Add: Net Income for the year
.
$ 13,151,587
9,604,791
.
ended December 31,1943
....
$ 22,756,378
$ 9,798,484
Deduct: Dividends
Additional
taxes
provision for prior years' income
.
.
.
.
.
Miscellaneous charges
interest group.
one
8,606,161
Gross Income
;:-:j.
this
13,042,000
.
Depreciation (substantially 15%
operating revenues)
.
.
.
.
♦
of
bureaucracy.
That
is the reason why, in those cases
where
planning — limitation or
regulation of competition — ap¬
pears to be necessary, the modern
tendency is to permit such plan¬
ning only on condition that it be
operated or controlled by a pub¬
lic
agency,
responsible to the
whole
people, and to prohibit
planning by one of the interested
parties, responsible: only to its
On
.
Provision for
irresponsible
own
6,480,688
...
as
chance on an idea.
a
$14,922,577
Taxes—State, Local and I Iiscellaneous
they would throw folks
of work,
$ 57,929,669
.
.
.
Provision for Federal tax< s on income
Petrillo now in¬
sists when he stops records from
being made. Edison just went on
tinkering to his heart's content
and
there
were
always
some
friends about with loose change
out
....
.
Operation and Maintenance
products of his mind and labora¬
whether
.
.
Operating Expenses and Taxes
motion picture or the phonograph
or his batteries or any of the other
tory
Earnings
.
.
.
.
.
1,150,000
....
25,076
(net)
Balance, December 31, 1943
American
10,973,560
,
$ 11,782,818
,
.
.
opinion and liberal British opin¬
ion are in agreement. The Ameri¬
I
cans
that
cited
have
before
Consolidated Balance Sheet, December 31,1943
agree
private groups should not be
permitted to engage in market
planning without public control.
Lord de la Warr says, "we cer¬
tainly should not be prepared to
Liabilities
Assets
Plant, Property, Rights, Fran¬
chises, Etc. (Stated substan¬
tially at cost)
....
.
.
.
give such power over our lives to
any but a public body."
Even the
ment, amount of settlement not
of
Federation
British
their
vise
proposed
planned
"world trading system," though
they are vague as to how far this
be
would
how far
phblic
a
agency,
private one. \
Public control agencies
a
v
are
and
ours
many
a
Miscellaneous Investments
not
high
work
or
to¬
toward
production.
2,510,289
.
.
.
5,086,292
and Expense on
Common—
.
.
.
Long Term Debt
..
.»
.
,
138,000,000
.
.
3,368.417
Premium
on
Bonds Outstanding,
being amortized over lives of
4,980,497
issues
>
;
,
,
.
.
2.766,944
.
.
.
-
.
....
«
.,
Cash in Banks and
on
Deferred Liabilities
and
hand,
Working Funds
.
tions at cost
Payable
.
$ 4,853,189
Accrued Interest
.
1,405,000
Accrued Taxes.
...
.
19,029,232
25,287,421
.
81,976,792
Reserves
Re-
for Uncol¬
lectible
ables
dends
16,380,000
.
less
$662,1 93
serve
.
and
Receiv-
able,
.
Accounts and Divi¬
obliga¬
Accounts
Notes
Contributions in Aid of Construe-
Receiv¬
....
tion
,
.
1,364,271
.
Construction and
Operating Mate¬
rial
566,398
Current Liabilities and Accruals
$ 5,718,834
United States Gov-.
ernment
„
and
Earned Surplus
Sup¬
plies, at cost
.
.
.
....
.
11,782,818
.
30,126,585
3,865,995
$417,930,152
$417,930,152
If
situations, it must be plan¬
ning by public agencies truly re¬
sponsible to the will of all the
;.
70,743,697 $156,185,508
3,182,805 Shares
11,239,296
planning is to be used to deal with
these
3,466,857 Shares $85,441,811
Refunded
Issues, being amortized
Current Assets:
Preferred— ^ v
34,469
Original Issues , . . . . .
Prepaid Accounts and Deferred
Charges * . . . . . . . .
there may be situations where the
does
.
Deposit with Trustees .
Discount, Redemption Premi¬
um
of influence through
market
.
on
Debt
which public attitudes and inter¬
free
share)
.
.
.
al¬
diverse structure, and
lines
.
.
Capital Stock Selling Expense on
in danger of being captured
the private interest groups
have
determined
Cash
Value $25 per
by United States Govern¬
'
ways
by
tioned
Capital:
Capital Stock (Par
$360,584,307
Cost of Electric Plant Requisi¬
Industries
Stated
(THE ABOVE STATEMENTS ARE
such
and
behind
SOUTHERN CALIFORNIA EDISON COMPANY LTD.
beginning at
scratch, is now probably the larg¬
est producer of magnesium.
It was just like Thomas Edison.
uncontrolled people.
free to keep
or to waste their earnings.
It was
theirs to do with as they chose.
It is because of that freedom in
Dow
This company,
tion.
tions
ning is planning by a public
responsible ; bureaucracy. ■
Privotely-controlled planning is
men
dollars
And they were
producing an outstanding unit of
productivity of value to the na¬
sustained
as
such
uct.
stop him or his friends and
that in the end he succeeded in
ward either abundance
of them.
for
do it
to
Dr.
as
not
tion and report
both of its opera¬
a whole, and any detail
Publicly-controlled plan-:
able
were
men
TH
ests may influence official action.
public auspices, on the contrary,
Planning by public agencies may
it is responsible to governmental
thus tend to substitute for the
authorities.
In this country, for
competition of the market a com¬
example, that means not only
petition between alternative plans
public reporting of its operations, of action.
but also being subject to be called
In conclusion, we may say that
before legislative committees or
other
rewarded
some were
ingenuity, for their risk,
the value of their final prod¬
idea,
call
which they are established to reg¬
it that, may be set up under pub¬
ulate. That possibility Us generally
lic auspices or private.
If it is
recognized, and methods to pre¬
set up privately, it is responsible
vent it happening can be sought.
only to the special-interest groups
A further complication, however,
which run it. It can th^n influ¬
is
not
so
generally recognized.
ence
the general welfare of the
Democratic governments such as
producers, workers, and consum¬
bureaucracy, if we prefer to
Germany
that
States
significance of his
ning, we must then face the issue,
who is to do the planning?
No recognizes the need of an Interna¬
tional Economic Council to super¬
matter Who does it, the act of
planning
United
the
put
for their
Man With An ltte
The
And
fulness.
Men
to.
Michigan."
sawed in
dinated choice of each community,
wanted
lumber
the
all
of
value
Men made them because
their and Japan are not winning this
savings into them because they war since obviously we could not
wanted to.-They were free to lose have been made ready in the 18
their money backing their own months or two years at our dis¬
judgment. They were free to look posal.
We
have
been
making
like crazy monomaniacs who re¬ ready for decades, not as a gov¬
lentlessly pursued a single idea, ernment but as a free people. And
if that is what they wanted to do when
the
call
came
the
free
with their lives.
They were free people were ready. They—thou¬
to risk, free to venture, free to sands of them—did this amazing
fail—and free to succeed in use¬ job
of
productivity—and
they
commodity controls unneces¬
sary in the future, they will no
doubt insist on maintaining them
prises is left solely to the uncoor¬
life.
they
the
For
duck.
queer
can
such
If
131?
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4268
CONDENSED FROM THE PUBLISHED
ANNUAL REPORT)
BBBBmraSGSSBSS
THE
Thursday, March 30, 1944
COMMERCIAL & FINANCIAL CHRONICLE
Vice
California Savings And Loan
i Thrift Practice Education By
Associations Continue Growth
Savings And Loan Associations
President
-
Secretary of the
-
Loan
&
Savings
Federal
Union
Association; Executive Committee,;
C. A. Carden, President of the;
City Federal Savings &
Association; Hugh H. Evans,:
Vice
President - Manager of the
Western Federal Savings & Loan
Quaker
Loan
-
Association; Neill Davis, Execu¬
tive Vice-President of the Cali¬
fornia
Savings & Loan League;,
Palmer, President of the
Federal Savings &
B.
F.
Pomona First
Vierling •
and
Association;
Loan
Kersey, Superintendent of
Los Angeles City Schools.
the;
Home Building
Job For
Private Enterprise
Says Roosevelt
The
statement
by
March 8
made
was
President, Roosevelt
on
task of providing new;
homes that will be needed bymillions
of
American
families
the
that
after the war "is
for
primarily
a
job
enterprise.'^ The Presi¬
private
dent's views were indicated in
a
to the opening session of
three-day national conference
message
a
on
post-war housing sponsored by
Hous¬
the National Committee on
Presi¬
ing held at Chicago. The
dent added that:
•
continue,
must
"Government
however, to lend appropriate as¬
private enterprise in
to
sistance
undertaking, and
this
to
assume
responsibility for doing
only that part of the total job
which private enterprise is unable
direct
to do itself."
The foregoing
is from Chicago
advices March 8 to the New York
"Herald Tribune" which likewise,
reported:
He
that
(the President) emphasized
home building industry,
the
by meeting the demand for mil¬
lions of new homes that will arise
after
the
will
war,
be
able to
"play a most important role in
post-war America" by furnishing
employment in all sections of the
country.';.
"The goal to be sought here at
home, when peace comes, is full
employment,"
Mr.
Roosevelt
noted* "We must plan now to em¬
ploy
the
and
men
who
women
will be released from war indus¬
try when victory is won at a wage
that provides decent standards of
living. One of the most important
standards of living is ahome — whether
it be
of these
decent
owned
Mrs.
or
rented."
Samuel
New York,
I.
Rosenman,
of
Chairman of the com¬
mittee, who; read the President's
message, also asserted that the
people were looking
forward tb post-war housing con¬
struction as "a mighty force to
American
WE
mm
s—
si
1
■■
STILL ACCEPT
IN AMOUNTS
is insured
dividend rate is
We will issue and mail
$5000 by-Federal
Savings and Loan Insurance
current
Corporation of
book
im-
^%per anntim. The Dec.
31,1943 dividend is the
a pass
28th Consecutive Semi-
ing us by the 10th day of
Annual Dividend
month earn from the
first day of that month.
paid
delay
-
to you
mediately. Funds reachany
by this Association.
Do not
AND INDIVIDUAL
To open an
Washington, D. C. Our
up to
—
Start saving today
This strong
source
California Association
of investment,
off^s
association
.NwiY.
an
HILLS—California
d— BEVERLY
)r
,
surplus funds
attractive
balancing safety and yield,'.
.
Federally Insured Safety
—
•
s*V'
Federal Insurance up to §5,000 on each
*•.'• \
—
"'y
,v
ij,V ' '/.V'i /"V
-'
t
'
''
i
'
account.
\ *
• r
to $5,000
up
'»>*
Semi-annual dividends have, been paid without
interruption since
Berkeley.; Guarantee's founding.
Higher-than-Average
Return
Mail accounts are welcomed.
May we send you .our
;
t
latest financial statement?!
ASSETS OVER $5,500,000
/
'
*
BERKELEY GUARANTEE
SAVINGS
&
LOAN ASSOCIATION
President
Liberal Withdrawal
Privileges
CALIFORNIA FEDERAL
Savings &, Loan Association
5654 Wi I shire Blvd.
LOS ANGELES
Assets:
2101 Shattuck Avenue
•;>
-
fOVLS^
Eugene Webb,
insist-
INVESTORS
22nd YEAR
AND LOAN
President's
the
CORPORATIONS, TRUSTEES, EXECUTORS
of $50 to $5000
insured
savings account here
make your check payable
to us, and mail it to the
address shown below.
account
Despite
accounts;
m ew sky mm
Each
keep this nation pulled up in the
bootstraps of prosperity.''
;
;
Berkeley 4, California
$6,197,064.00
Volume
THE COMMERCIAL & FINANCIAL
Number 4268
159
f| Savings Loan League
Officers and directors of the Cal¬
ifornia Savings and
CHRONICLE
California Savings & Loan League
Holds Midwinter Conference
Loan League
mid¬
winter conference Feb. 23, at the Biltmore Hotel, Los Angeles.
Presi¬
President: E. L; Barnett, Santa dent E. L. Barnett presided. Speakers included: Fritz B. Burns,
Rosa Building and Loan Associa¬ "Present-Day and Post-War Aspects of Home Building"; Rolland A.
tion, Santa Rosa, Calif.,
Vandegrift, Legislative Auditor for the State of California, "The
Vice-President: Fred B. Palmer, Taxpayer in Post-War Planning"; Verne Orr, Vice-President, Chrys¬
Purchases Of War Bonds By
& Loan Associations
Bonds To Public, Too
Make Record Sales Of War
California Savings and Loan League held its annual
The
California Savings
By HtlGII II. EVANS
for 1944 are:
y-'V
California began the year 1944
with a record of $80,316,000 in sales of War Bonds to the public and
purchases of government wartime securities for their own,account.
While all the reports have not yet been completed, California
institutions have purchased so far during the Fourth War Loan drive
Pomona First Federal Savings and ler Motors of California, "Indus-fr
Loan Association, Pomona, Calif. try's
Contribution to
Victory"; the California Savings and Loan an additional $17,575,000 for their <S>-
Savings and loan associations in
,,
Executive Vice-President: Neill
President, Los League:
C. Mullendore,
W.
Chamber of Commerce,
"Let's Face Some Facts"; H. Merle
Angeles
Davis, Los Angeles, Calif.
Division Manager of the
Smith,
own
Officers—E.
L. Barnett,
Presi¬
dent
(Secretary,
Santa
Rosa
Building : and Loan Association,
account
During
■
the
same
Throughout the United States
industry has accepted a new
,
our
Fourth War
responsibility to its communities
and to the country.
They have
savings and loan asso¬
to their members
Loan drive
sold
ciations
entered
enthusiastically
into
the
and Loan Santa Rosa); Fred B. Palmer, and the public more than $8,000,Lights Go on Vice-President (President, Pomo¬ 000, and through the efforts of sale of bonds to the public and
Again"; Dr; Alfred Britt, Profes¬ na First Federal Savings and Loan the officers and employees made also in the purchase of bonds for
sor
of History, Scripps College, Association, Pomona); Neill Davis, additional sales to the public in their own account. The first 20
"New Industry and Old in a PostExecutive Vice-President.
1
the amount of approximately $4,- months
of the Treasury's
cam¬
War World," and a demonstration
Directors—E. L. Barnett, Sec¬ 400,000, making a total participa¬
paign our industry participated to
of patriotic thrift practice instruc¬
tion in the Fourth War Loan drive
retary, Santa Rosa Building and
tion
the extent of $259,000.
presented by Los Angeles Loan Association; Fred B. Palmer, of almost $30,000,000.
In 1943,
City and County School Savings President, Pomona First Federal
we have accounted for a total of
While the
Savings
States
United
League, "When the
figures are not com¬
and Loan Association.
Savings
meeting was held in
second
A
Hotel,
Feb. 25, with President Barnett
presiding. Speakers were: Honor¬
able Frank C. Mortimer, Building
San
and
Francisco, at the Clift
of Cali¬
Loan Commissioner
A. Vandegrift,
Burns, H. Merle Smith,
Ernest In gold, "A Peddler Looks
Fordward"; J. Fraser Rae, Indus¬
Rolland
Loan Association;
Fletcher, on leave,
in
the
Navy. Re¬
and
Charles
K.
Lieutenant
State
Loan
,
Frederick
R.
Peake,
Present officers and directors of
An Investment In
Federal
of
.
that post-war
ence
at
other speakers
industry,
Since 1890
In
its
this Association has never
failed
to
pay
semi¬
a
Resources & Undivided Profits
attention
public
of
housing
projects
CURRENT DIVIDEND RATE 2Vz%
record over
All
of
Insurance
•
the
after
and
war
came
the
to
conclusion that Federal and State
governments will have to provide
for
the lion's share of the funds
post-war
and
rehabilitation
of
reconstruction
the
nation's
Correspondence
share
invited
TRUSTEES, EXECUTORS,
Inquiries Invited
•
Pres.
Shatfcuck Avenue
*
.
AND
Berkeley, California
HIGHER INCOME
ASSOCIATION
LOAN
945 SEVENTH AVE.
•
SAN FRANCISCO
SAN DIEGO, CALIFORNIA
AND LOAN
Chairman of
Chartered and supervised by
advocated the use of govern¬
funds
ment
housing
finance
to
and
urban
city
public
other
Since 1925, at
more.
on
all times, Mutual has paid
At all times, all investments
demand dX par — $100.
invited. Current
.
Resources
;.
■
Investments to $10,000
DIVERSIFY FOR
yield 3%. *
$5*719,511.20
* Largest in Pasadena
of pasadena
SAFETY
315 East Colorado Street
* ; Pasadena,
3% Current Rate
Calif.
j||
JULY
1944
Insured Safety
LOAN
ASSOCIATION
th
INVITES
YOUR SAVINGS
Assets
Over
$$,000,080"
FIRST FEDERAL
AND
LOAN
SAVINGS
ANNIVERSARY
S
California's
OLDEST, San Diego's
LARGEST Association1
$5,000
TO
Inquiries Invited
of the West's
largest
;
associations.
Southern
&
ASSETS
OVER
$12,000,000
LOAN
ASSOCIATION
EDWARD A. DICKSON. President
Beverly Hills, Calif.
Executive
Mail
One
*»
9501 Santa Monica Boulevard
GEORGE
INSURED
Uninterrupted Dividend,
•
In Beverly Hills
SAFETY
FEDERALLY
Largest
More
fflNCOME
INSURED
SAVINGS AND
the U. S. Government
or
have been paid
looailvoMNW:
FEDERAL
CALIFORNIA
Institutional Funds Invited
works.
The Oldest &
FEDERAL SAVINGS
ASSOCIATION
SAN FRANCISCO,
the Federal Reserve Bank of Chi¬
cago,
invest here.
SAVINGS
FEDERAL
larger cities.
Simeon S. Leland,
CORPORATIONS, INDIVIDUALS
FEDERAL INSURANCE UP TO $5000-00
♦
COMMUNITY FEDERAL
2033
STREET
FRANCISCO, CALIF.
insured
accounts
and OTHERS are invited to
SAVINGS 6* LOAN ASSOCIATION
ASSOCIATION
MARKET
to $5,000 by an agency of
accounts.
PEAKE,
FREDERICK R.
654
the Federal Government
Francisco
San
East
the
up
in
area
LOAN
AND
San Francisco
SAN
Bay Cities.
chiefly to financ¬
CITIZENS' FEDERAL SAVINGS
685 Market St.
protected by
lending
Stable
•
$218,284.92
Savings
Federal
management with
enviable
an
1943
$3,387,530.36
annual dividend.
'
the
Assets December 31st,
history,
54-year
and Loan Association
the years.
devoted
conference
today's
their
ing
1885
.....
is
•
.
Sound
housing will
primarily the responsibility of
private
.
.
.
.
•
be
geles.
FEDERAL
Savings
of $2,000,-
'
SAFE SINCE
Conservative
Xlit^sfVS
Chairman
excess
President,
COMMUNITY
and Loan Division: W. J. Bowman.
in
*
000,000.
•'
tion.
.
campaign our participation
reached
Federal
Community
Loan
Association; Frederick R.
Peake, Community Federal Sav¬
ings and Loan Association of
Berkeley; Phil G. Thomson, Re¬
public Federal Savings and Loan
Association of Los Angeles; and
Charles K-. Fletcher, Home Fed¬
eral Savings and Loan Associa¬
has
B.
Fritz
-
of the
ings and loan associations in Cali¬
Erkes, President, fornia are now invested in Gov¬
M u t u a 1 .Building
and ernment bonds.
Association, Los Angeles;
Savings
and Loan Association of Berkeley;
E. O. Ecklund, Secretary-Treas¬
E. L. Barnett
urer,
Riverside County Mutual
Plastic
Consultant,
"Post- Building and Loan Association,
Board of Directors: E. L. Bar¬ trial
War
Plastics
Development
for Riverside; W. J. Bowman, Presi¬
nett; Fred B. Palmer; W. J. Bow¬
California."
The San Francisco dent, Albany Federal Savings and
man, Albany Federal Savings and
Loan Association; E. O. Ecklund, meeting was held in conjunction Loan Association, Albany; Phil G.
Riverside County Mutual Build¬ with
the
annual
stockholders' Thomson, Executive Vice-Presi¬
ing and Loan Association; H. R. meeting of the Federal Home dent, Republic Federal Savings
•Erkes, State Mutual Building arid
and Loan Association, Los An¬
Loan Bank of Los Angeles.
fornia;
$1,181,000,000, and since the start
R.
H.
serve ;
plete, it is safe to say that more
than 12% of the assets of all sav¬
W.
President,,
DAVIS
Vice-President.
SIXTH
.
■
AND
HILL
HUGH H. EVANS. Vice Pres. & Mgr.
•
MAdison
2436
YirG Thursday,
THE COMMERCIAL & FINANCIAL CHRONICLE
March,30,1944
1
Hemet
California Savings
Hollywood
$6,007,039
Central B&LA—
Park
484,370
Surety Bond B-LA-r—,-4—»
1,196,723
Albany
B&LA——
Carmel
vipirst
FS&LA of Alhambra—
2,321,215
Mutual B&LA of Alhambra_—
960,399
Vista
163,291
—
B-LA—
1,378,529
Claremont
1X.
.
447,135
Laguna Beach
Laguna FS&LA—•
^,
1,617,940
3,454,280
*
B&LA—
Prudential
Assn;
Habra
1,781,559
,
Compton
353,652
Mutual B&LA-
Corona
22,615
121,340
Guarantee B-LA—_
FS&LA
Coronado
1,083,497
Covina
262,997
First FS&LA of San
Valley
——
1,150,400
Valley
Imperial
B&LA.
Banning
392,752
'
Escondido
Ramon a
FS&LA
B-LA
1,825,192
FS&LA—_——
6,905,975
.Angeles
of Pasadena——
S&LA
105,175
2,417,422
Security FS&LA of Los Angeles
California
Southern
FS&LA-
Mutual
744,750
3,160,849
.
B&LA—;
1,436,523
6,512,943
Fullerton
2,257.647
"Mutual B&LA of Fullerton
B-LA.
222,791
of
Glendale—
1,539,011
Merced
Mutual
SAFETY PLUS
B&LA.
2,427,931
387,391
and
Napa B&LA—
$1,800,000
Loan Insurance
instrumentality
of
up
Corp.,
the
an
S&LA_„,—
Turlock
Redondo Beach
—
1,024,142.
Napa
1,452,961
——
United
Belt
Citrus
City
B&LA.
Financial Statement
■
YOUR
Wilshire Federal
Savings and
——
FS&LA
Sutter
Calif.
Los Angeles 5,
508.154
Whittler B&LA
712,851
603,816
2,483,835
Total
San Diego
'
■"
;
—$411,133,573
California
for
of
•Nonmember
vi;
Savings .and
California
:
Loan League.
Central FS&LA of San Diego—
First FS&LA of San Diego
Home FS&LA of San
1,612,926
8,423,015
Diego
5,088,855
303,329
—
Chicago Hoise Loans
3,299,308
Diego FS&LA—
In Feb. Exceed Those
B&LA—
California
Citizens'
Francisco
svA.v
&
Sav.
Loan
Co
3,349,811
3,387,530
FS&LA
Since 1888
1,732,713
Franklin
—_
1,537,093
FS&LA——_
1,282,572
Golden
S&LA—
Gate
Home
SAFETY
San
FS&LA———
The Western Loan Assn.:
San
Solano Avenue
2,477,450
—
to Illinois and Wisconsin member
home
Jose
SANTA ROSA
B-LA
of
629 Fourth
Obispo
San
B&LA—
959,635
Street
CALIFORNIA
San
Gardner, President,
the Federal Home
Administration
in
March
on
during
institution
serve
• are
tradicted
needs
of
because
the
peace
con¬
of the varying
member
savings,
596,194
the
war economy.
We Solicit The Investment
-
YOUR PROFIT
co
.j
Your
X
$5000.
j
account
by a
-Trust Funds
here is insured up to
direct instrumentality of
-Endowment Funds
-Insurance Funds
the United States Government.
-Individuals
FIRST
the high¬
with
Insured
Your account here earns you
est
return
Safety and
agement. '
May
consistent
Condition,
you
for
Statement
our
explain
and
rangements
man¬
ASSETS OVER $6,500,000
send
we
conservative
sound
the simple
opening
your
of
Assets
Over
RESERVES & SURPLUS
☆
$763
LOAN
A S
S
D
C I * I I «
OF HOLLYWOOD
Hollywood
Blvd.
-
tA*AY*rre
Gehrke, President
;
over
$16,000,000...Savings
in the heart
iuilding-Loan Association
E.
SAN
SAN
JOSE,
ANTONIO'
accounts
accepted
...Current rate, 2%
Independent
-
Assets
and investment
☆
Hollywood, Calif,
HEmpstead 4141
|
Walter
N
16
v
|
GRISWOLD AT LAFAYETTE
$719,073.21
$4,000,000.
FIRST FEDERAL SAVINGS
AND
FEDERAL
SAVINGS AND LOAN ASSOCIATION
ar¬
account
by mail?
ST.
CALIFORNIA
of Detroit
re¬
frequently
being
j&wu":
'
He
16.
J-SiaJ.
AND
of
building and loan associations in
Pedro
First FS&LA of San Pedro
volume
lending, established by the
time,
866,667
Mutual
R.
to
Bank
Washington
in
Mateo
FS&LA
Mateo
dollar
pointed out that seasonal patterns
Luis
933,874
Peninsula
San
SANTA ROSA,
Loan
Obispo
San
Building and Loan Ass'n
tory. A.
reported
6,203,108
Luis
the
twice
previous February in its his¬
6,068,013
B-LA
Guarantee
any
3,517,674
B-LA
B&LA—
Jose
financing institutions to¬
$1,661,699 and were more
taled
than
1,813,063
7,712,133
6,010,618
Independent
Previous Feb.
February advances of the Fed¬
eral Home Loan Bank of Chicago
3,204,885
470,987
Guaranty B&LA—
California
Of Any
3,166,645
S&LA.
Mutual
Francisco
San
FOR YOUR SAFETY
-
1,372,956
Surety B&LA
f
431,693
Wilmington Mutual S&LA
1,178,565
San
'&2M0A
2,733,565
-
—
First'FS&LA of Wilmington—_
First FS&LA of San Bernardino
Nucleus
Hollywood®
3,000,823
Quaker City FS&LA
988,661
Wilmington
Bay View FS&LA—
FEDERAL
/|5§i^\
646,165
Whittler
First FS&LA of San Jose—
Albany
'406,181
.
W. J. BOWMAN, President
1377
1,155,608
2,138,709
Watsonville
4,273,824
...
Home FS&LA of San Francisco
South Western Avenue
461
1,818,242
' X
„—
1,536,286
Valley S-LA-.——
Salinas
*San
Savings and Loan Ass'n
Loan Association
B&LA
Visalia
B&LA
Eureka FS&LA of San Francisco
ALBANY
.
717,558
——
San
★
NUYS
San Fernando Valley FS&LA-
Sacramento Guarantee B-LA—
'
INQUIRIES INVITED
A.
Van
1,379,508
'
•;
B-LA_—_
Guarantee
•
Sacramento
Silver Gate
Write for Our
★
468,322
Provident B-LA
Redwood
County B&LA
San. Mateo
SantaFe FS&LA-*
1,137,587
—
States Government.
•
260,567
*
Turlock
San Bernardino
Educational B&LA
Montrose
Insured Safety
Guarantee B-L Corp. of Tulare
520,030
Salinas
Intervalley B&LA—.
insured
is
money
3,101,321
Tulare
FS&LA
Fort
1,956,218
—,
to
$5,000 by the Federal Savings
Your
.
Land, Loan & Build¬
ing Assn-————
2,129,311
Redlands
Capital FS&LA—
★
Solicited
2,643,492
Tulare FS&LA
Monterey
Institutional Accounts
Resources over
Mutual
2,731,473
—
—
Redlands
253,411
;
B&LA——
Monrovia
RETURN
**--'■
Stockton
Stockton
7,253,266
Porterville Mutual B&LA
Monrovia
Angeles
1,304,633
'
Watsonville FS&LA——-——
B&LA
Modesto
Modesto
Joaquin B&LA
State B&LA—
1,015,686
Porterville
Riverside County Mutual
6,702,802
Wilshire Federal
of Los
Stockton
Riverside
713,399
Merced
FS&LA
145,977
VlSclli3>
Marysville Guarantee B&LA—
Glendale
FS&LA
Glendale
570,516
806,282
—
Loan
Mutual
359,528
9,151,544
FS&LA
1,831,564
„
B&LA.
-
.
Home-Builders' Loan Assn
Marysville
269.934
.
V
Fidelity
B&LA.
1,705,036
First FS&LA of South Pasadena
—
858,543
,
Sausalito
,
Pomona
^
Mutual
Madera
—■
Rosa
South Pasadena
11,529,434
715,578
,
Sausalito
Assn,
Madera
First FS&LA of Fullerton:
f
Northwestern
The
2,028,078
5,719,511
Pico
American
FS&LA
2,814,140
Paula B&LA—
,,
San
Pico-Rivera B-LA
15,269,808
FS&LA
Union
780,462
3,779,174
Robles Mutual B&LA.^—
Pomona First
1,677,030
1,552,905
Paula
Santa
Paso Robles
12,752,347
FS&LA.
Standard
568,312
B&LA-
869,523
FS&LA—_____
B&LA—w——1,664,912
3,105,152
A
'
' i."
Santa Rosa B&LA
Investors Mutual B-LA
Paso
1,761,022
*.,*.•
•
.FS&LA of Santa Monica
Santa
1,629,528
3,572,795
Pasadena
432,732
Angeles
First
Santa
Pasadena.
FS&LA of Pasadena.——
Pasadeha
'
•
Monica
Santa
Century
Atlas FS&LA of
388,919
—
——
American B&LA—
Wilshire FS&LA of Los Angeles
_
—
FS&LA
,
2,569,671
600,607
Mutual B&LA—
Mutual B&LA
'
'
Santa Maria. Guarantee B-LA-
Foundation B&LA-—
Alto
'
\
Palo Alto
Palo
363,359
S&LA—
Western
B-LA
Guarantee
Hills_
Beverly
of
96,96$
Fullerton
654,536
1,424,391
Angeles
state
Fresno
Fresno
Beverly Hills
FS&LA
902,572
—
2,985,621
Beverly Hills B&LA
S&LA—
S&LA
Los
Southern
5,338,830
S&LA—_
3,259,350
First
329,681
.
■^The Fortuna B&LA..
Community FS&LA of Berkeley
Western
25,898,342
Republic FS&LA-:—,——.,
Fortuna
Fidelity Guaranty B&LA—
Southland
344,048
_
2,483,681
Berkeley
6,197,064
of Los Angeles—
Santa Cruz
'
■:>
•••
Santa Maria
Oxnard
First
FS&LA—
Metropolitan FS&LA of Los
Fillmore
First^ FS&LA of Bellflower
Guarantee
Great
Pioneer
Bellflower
Berkeley
Centro
Escondido
Gorgonio B-LA—^
San
Los Angeles
California
Los
El
1,123,645
13,988,653
*
980,561
—,
3,321,599
Liberty
—
1,010,874
Mutual B&LA
962,765
FS&LA
Lincoln
Gabriel
—
Bakersfield
First FS&LA of Bakersfield
Beach-
Long
Home B&LA—,——.
Auburn
Central California FS&LA——
■
Santa Cruz County B&LA—
Orange
Home
B&LA
Beach
Coast FS&LA
Coronado
Atascadero'
Kern County
Long Beach
Long
Corona
Arcadia B-LA——.
Atascadero
1,481,121
FS&LA—
of
ir—————2,968,757
Santa Clara
724,586
Oxnard B&LA~.
Long Beach
FS&LA
7,418,772
Bldg. Assn of Santa
Barbara
Ontario
1,514,059
3,177,244
Santa
Santa Clara B&LA—759,390
Orange B&LA———-—
.
f
Barbara
Mutual B&LA—
Barbara
The Loan &
199,226
837,139
—
FS&LA—
Oceanslde
495,617
La Jolla
l,416jl60
First
Arcadia
Greater
—
Compton
Savings, Loan & Building
of Anaheim—V--
The
Belt FS&LA—
Orange
Santa
Oceanside
Colton
1,580,347
—
2,179,605
Barbara
Santa
FS&LA of
First
■
1,612,563
Ana B&LA——.—-----
Santa
1,919,005
—
'
Anaheim
Anaheim B&LA—
1,265,842
Oakland FS&LA—1,340,189
Euclid S&LA
B&LA—
FS&LA
Jolla
La
G V'■•*■
Santa Ana
First FS&LA of Santa Ana
vvV'j:
West S&LA——————
2,471,242
r—,
i
Habra Valley
367,257
J:
•
La
_
—
•;.
3,374,558
Oakland.
FS&LA of
4,429,221
-
766,965
——
B&LA
I'A \
Oakland
■
^
3,797,307
Claremont
Altadena——
»v-.v
Hollywood FS&LA——
Thrift FS&LA
Peoples FS&LA
•La
Altadcna
•First FS&LA of
2,357,600
—-———
Inglewood
Chula Vista B-LA
Chula
•
Hollywood
"
Alhambra
.
North
Golden
BLA.
Inglewood FS&LA—
*
Peoples' B&LA
Carmel-By-The-Sea
618,373
FS&LA——.
Albany
' ./
I\-
'
.
,-;,Y'G
Marin-County Mutual B&LA— /'.;
883,871
—.
3,138,120
Huntington
_———
—
■
B-LA—
Burbank
4,715,922
i ;
of
FS&LA
Pa r k
Burbank
v'i'A■':,»3'.-'v.
"r '
Hollywood
First
First
v.-
.
North
B&LA——„—
Huntington
-tAlftttlPfift '• vV
i>•;•//
San Rafael
/.
Newport Beach
Newport Balboa FS&LA
Huntington Park
(Compiled by California Savings and Loan League)
\
of
FS&LA
First
of December 31, 1943
as
259,302
Hollywood
Building-Loan Associations
Assets
■;V:V
Hemet FS&LA—
:
Volume 159Number14268 ?.'■
GENERAL FOODS
'
THE COMMERCIAL & FINANCIAL CHRONICLE
:
•
SUBSIDIARY COMPANIES IN THE UNITED STATES AND
CORPORATION AND WHOLLY OWNED
1317
*
f
- v
CANADA
•V-''"/;:*•
j•*
:
'• ■''*"...i'i,'. .-si-»v.*rl,-<«•>. :y.'v-pvr-,. -!•
w.w-.v..• f:-\i ■ •--»:M,v -. v*-'j.-,S"'.^^'COMPARATIVE CONSOLIDATED BALANCE SHEET DECEMBER 31, 1943, AND DECEMBER 31. 1942
•1/
.w' >•' V ■#.
fi-S- '-'y;
fc
. v/v*;
;». '•
.'K — v'v! ''-OvVu
'
1
.7;
•.
c .•»
,
LIABILITIES
ASSETS
•
Dec. 31, 1942
31,1943
Dec.
not in excess of
■'
$ 20,574,969
$ 11,983,961
U. S. and Canadian Government
Salaries, wages, etc., payable and accrued
.._,u
.■
8,252,405
7,277,811
liability (1942—$6,000,000)
Accrued
,
1,547,728
106,562
150,802
Notes, drafts and acceptances receivable.;
Inventories, at average cost or market,
$ 26,208,723
$44,876,900
17,050,451
Finished and semifinished stock.
Supplies.
......
Due 1947
$ 85,608,997
v
less reserve of
'
$185,367 ($174,239 in 1942).
Assets of
'(t-i1
s'i,
''li
4,942,712
'j
7>
'> v
'
'
,
"
\ x\ '
,
^ v>.'
^
/
3,471,212
,
1
%
721,825
Federal tax thereon
Arising from requisitioning of assets, less
721,825
•
Loans to
Issued—150,000 shares $4.50 cumulative preferred
Government for assets
employes..,,.
*
Long term notes and accounts
receivable, less reserve of
$ 3,905,022
.
ing 85,778 shares held by a subsidiary company for conversion of its Class A stock in hands of public..,.....
5,996,643
55,400,109
48,402,798
$70,400,109
$ 63,402,798
,Less-^eservesibr.depreeiation...
33,924,342
.
725,390
4,989,323
$ 27,754,833
106,740,334
capital stock and surplus.
93,507,855
$142,619,689
Total
(TRADEMARKS,. PATENTS, AND GOOD WILL (Note 6)
$ 32,744,156
$36,340,225
29,590,737
27,760,575
32,256,004
v
of common stock re¬
15,311 shares; 1942—105,311 shares)
$ 57,351,312
$66,180,346;
;
acquired and held in treasury, at average cost (1943—
35,751,498
41,346,779
2,350,224
$
:'
$37,065,615
attached (Note 4)
Less—Amount allocated in respect
18,002,982
20,928,545
Buildings, docks, etc..
Madiinery,equipment,Anotor trucks,,.yessels, etc.,.,..
Earned Surplus, statement
3,596,832
$
,
,
15,000,000
share)..... $15,000,000
Capital Surplus, statement attached (Note 6)
^PROPERTY ACCOUNTS: (Note 2)
Land, factory sites, etc....
a
(1942—5,359,751 shares) inlcud-
Issued 5,590,774 shares
570,523
7,347,235
713,998
$100,000 ($80,000in 1942)....,
$100
(Note 6):
Authorized—6,000,000 shares without par value
91,364
505,467
625,459
bonds, at cost, less reserve;......
Common stock
600,000
;
1,600,000
84,387
refurid of excess profits tax.
(involuntary liquidation preference
2,633,000
2,633,000
Other stocks and
Authorized-—350,000 shares without par Value
420,901
420,901
requisitioned
Estimated postwar
-Preferred stock:
462,908
431,408
,
wholly owned Philippine Islands subsidiary
Amount receivable from U. S,
.V-
1,500,000
CAPITAL STOCK AND SURPLUS :
712,480
838,082
$
Great Britain and Bahama Islands companies...,......
Y
"
$ 23,827,170
.
tangible assets, which is less than cost:
Domestic pnd Canadian companies,
t
15,835,085
$ 30,214,818
DEFERRED CREDIT
companies (not
consolidated) at proportionate amount of book value of
;
- '
18,794,27$
under revolving credit agreement
S,'1''
i
Investments in and advances to subsidiary
v
Tax Series
RESERVE FOR CONTINGENCIES
OTHER ASSETS:
♦
'
43,407,220
1,678,851
63,784,096
$101,248,979
Total current assets
-
468,294-'('".'YY
1,289,968
NOTES PAYABLE TO BANKS
15,519,641
1,856,745
■
;
-
whichever is lower:..
Raw materials
net
.,
„
,
Total current liabilities
293,677
^18,203,111
378,925
and notes
21,206
168,750
19,611 ,-y ■>
5,517,911
506,345
$
profits taxes, after
excess
Treasury Notes (1942-$6,000(000)
,
„
and
deducting $6,320,000 of U. S. Government
.
accounts
expenses
Federal and foreign income
«•
$ 13,668,080
$18,582,036
Less—Reserve for discounts and. for doubtful
payable, including taxes withheld.
Accounts
$ 12,013,790
$16,484,577
Miscellaneous, including deposits and working funds....
1,946,657
Customers'' accounts.',...,..
' Dec. 31,1942
,
1,576,839
Preferred dividend payable.;
Accounts and notes receivable:.,
;
$
Acceptances and drafts payable......
'
Foreign drafts discounted
rparket, less $6,320,000 applied in reduc¬
tion of Federal tax
>;«/!.:.
805,857
168,750
71,869
8,052,884
604,250
640,091
Accrued miscellaneous taxes
'jj >''i"
securities at cost, which is
1943
CURRENT LIABILITIES t
CURRENT ASSETS:,
Cash.,
Dec. 31,
$123,02.8,062
i
DEFERRED CHARGES TO OPERATIONS:
'
^.^rc^dadvertisin^bjqienseand Supplies* J.»V.
;priepfcidusvfrance,prejiuuxns saul-other expenses.
1
Purchase canttacb rlghts-ribalance unamortized...
$
t
„
^.. •. •-
499,8781,085,863'
181.729
-
514,629
-
_
1,110,823'
.
- .
.1,831,684
206,232
1,767,470
$123,028,062
$142,619,689
'
COMPARATIVE CONSOLIDATED STATEMENT
STATEMENT
LOSS AND EARNED SURPLUS
COMPARATIVE CONSOLIDATED
OF PROFIT AND
Dividends
Years Ended
On
Dec, 31, 1942
Dec. 31, 1943
On
(Including $3»716,885 bulk raw material
.1943-$25,198,995 ill 1942)
:
Net sales
'■
:
Cost of goods sold,
Selling, administrative, and
charges..
.
sales in
operations
$
Dividends and interest.
income
Proportionate share of profits of subsidiary companies not
Royalties and miscellaneous
$
642,391
$
provision for taxes and contingencies
Provision fur estimated income
Federal income taxes
Federal excess profits tax
...........,
.$
(Note 5).;..................
Foreign income and excess profits taxes (Note 5).......
Profit before pruvision.for contingencies;
NOTES TO FINANCIAL
profit for the year
Jbeginning of year.
of
1,500,000
;
$ 14,144,847*
32,744,156
v
*
reflectedon^thebasis
property accounts have been
approximate cost of exchange.
28,537,770
of cost,
cess
not yet covered
No
speeihe provision has been made in respect of
have
a
material effect
.
4. Of the amount
$9,298,284
mon
stock
was
We have made an
Foods
examination of the consolidated balance sheet of
for the year'1943. Our examination was made in
accepted auditing standards applicable in the cir¬
included such' tests pf the accounting records and other sup¬
profit and loss and surplus
cumstances
arid
porting evidence and such other procedures as we
.
K
.
our
not available for dividends on the com-
stock) being
preferred stock provisions of the certi-
I
in
common
>
considered necessary.' •:,
Price, Waterhouse
56 Pine
Federal and Canadian excess profits tax
$1,500,000 in 1943, have
provision for excess
retirement
assets of businesses acquired during the year 1943 for
231,023 shares of original issue stock. Intangible assets
for 8udl
^ued 'tares amounted to
?2'7fby "»««« of 'h,e
marketvalueofBUehsaarasoverthenettangibteassets),
™h,cb »?«?«• Pursua,,t to tb? »"«b»risation of the
Hoard of Directors, was credited to capital surplus
acf?WH carrying intangibles
ae,:ord?n>ce
policy of
• eons,stent
at tne nominal figure of
$1.00, the amount of these intangibles was simultane-
ously written off against capital surplus, so that neither
of these transactions appears in the statement of capital
surplus annexed hereto.
-•
opinion, the accompanying
-
'-<$
.....
consolidated balance sheet and related
statements of profit and loss and surplus present fairly the position of the
companies consolidated at December 31, 1943, and the results of their operations for. the year 1943, in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceding year.
In
General
Corporation-and wholly owned subsidiary companies in the United
Canada as at December 31, 1943, and of the related statements of
States and
.accordance with generally
m
■■. .. »
u -
6. The increase of $6,997,311 in the common capital
stock account reflects the book value of the net tangible
1943
of earned surplus at Dec. 31, 1943,
ACCOUNTANTS' OPINION
:
February 23,1944
$32,'744,156
credit) was applied in. reduction of the current tax
liability.
refundable, if any, will not
the profit, tor the year.
on
(unless payable
restricted by the
.
"
($2.50 in 1942)
profits taxes, Of this amount $600,000 (debt
by depreciation, was
Renegotiation of 1942 business with 0.8. Government
business, but the net amount
.
;
been deducted i.i determining the
;
-•
departments resulted in a net refund of $28,500 which
has been charged against the reserve for contingencies.
of Directors and Stockholders of
37^65,615'; ''
postwar credits, amounting to
Properties are stated at cost, excepting certain prop-r
erties appraised at sound values in 1916 and 1926; the
balance at Dec. 31, 1943 of the appraised values in ex-
3.
General Foods Corporation
-
;
STATEMENTS
5^ Estimated
.
the close of the
2.
13,810,034*
$ 42,347,804
$ 46,889,003
official rates of exchange at
$758,989—($798,786 in 1942). Depreciation provided
for 1943 aggregate^ $3,122,726 ($2,563,155 in 1942).
To the Board
;
ficate of incorporation of the - parent company (aa
amended).
.
s-r"
'
,
< .
and deferred expenses of Canadian
year;
$ 15,310,034
,
1,500,000
:.
ments at
18,400,000
684,000
15,644,847 v
ilarned surplus at
$
subsidiary companies and the results of their operations
have been reflected in the accompanying financial state-
7,416,000
10,300,000
20,800,000
708,000
-
$ 33,710,034
1. Net current assets
$
Provision for contingencies;
Net
793,102
121,130
704,165
$ 36,444,847
7,892,000
12,200,000
(amount allocated for
year
(Note 4). ..............«...;
and excess profits taxes:
(including surtax).
487,675
end of
914,232
$
736,162
31,997
Less—Interest expense
'
^Equivalent, after deducting preferred stock dividend requirements, to $2.42
a share of common stock Outstanding at end of year.
i/v if ,
28,049
7
; *9,603,648
."$ 32,744,15ft
reacquired stock not deducted) per balance sheet
243,792
$
49,508
consolidated.
Profit before
222,151
675,000
8,928,648
less amount clxargad to capital
surplus
Earned surplus at
464,503
-;
stock reissued over quoted market
value at dates of issuance,
$ 32,916,932
9,335,713
$ 37,553,290
Excess of cost of treasury
198,589,528
35,264/39
$
675,000
8,660,713
Total.....
Other income:
•
stock in hands cf public:
share)
,
38,260,570 224,117,570
$ 35,740,682
• • • • •
on
preferred stock ($4.50 per Bhare)$
com .non stock (1943—$1.C0 per share; 1942—$1.70
per
$163,325,089
general expenses, and other
.;
Profit from
$231,506,460
$259,858,252
$185,857,000
including freight charges,
AND EARNED SURPLUS
OF PROFIT AND LOSS
& Co.
Sired, New York 5, N. Y.
'The
.
Consolidated Balance Sheet for General Foods Corporation at Dec. 31,
;1943, and related financial statements have been prepared under my supervision and, in*my opinion, present fairly'the position of the companies con-,
solidated as of that date and the results of their operations for the year.
-
Feb. 23, 1944.
'
MARVIN W. KIMBRO, Controller'
1318
THE COMMERCIAL & FINANCIAL CHRONICLE
'
Thursday, March 30, 1944
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
CANADIAN PACIFIC RAILWAY COMPANY
Sixty-Third Annual Report of the Directors of Canadian Pacific Railway Company, Year Ended December 31,1943
To the Shareholders:
The financial results of
operations showed a moderate
improvement over 1942 which, however, was not in pro¬
portion to the increase in traffic handled. As a result
of governmental regulations rates, both passenger and
freight, were maintained at the 1941 level. On the other
hand operating costs, both labour and material, and taxes
advanced substantially.
surpassed what
The volume of traffic handled in 1943
might haye been thought possible a year ago. Freight,
passenger, mail and express traffic all reached levels
never before attained.
meeting the enormous wartime demands for trans¬
In
and facilities
subjected to rigorous tests. Heavy snowfalls and
portation
Were
organization
Company's
your
of the year created operating
difficulties; the shortage of labour curtailed the main¬
tenance
programme; the amount of, new equipment
procurable fell short of requirements; and wartime re¬
strictions limited the provision of additions and better¬
ments to facilities. The continuance of heavy enlistments
sleet in the first quarter
armed services of members of the staff created
in the
problems not only of replacement but also of training
and supervision. In spite of all obstacles, however, your
Company succeeded in meeting the demands made
upon it.
>
The unprecedented record
of operations for the year
31, 1943, is set forth in detail below:
ended December
Income Account
Gross
Earnings
Expenses
Net .Earnings
(including
i
-
Other Income
$297,107,791
247,896,224
1
taxes)
$49,211,567
16,270,751
1—
,
—
———
$65,482,318
Fixed
Charges
Interest
on
Sault
teed
Ste.
—'$21,795,836
—
bonds
of
Minneapolis,
Paul, &
St.
.
K
Marie
Railway Company, guaran¬
to interest by your Company
as
,
703,764
___
22,499,600
Net Income
Dividends
2%
$42,982,718
,
on
Preference
$2,521,391
2,521,391
and Loss
'.
31,
of Income
Account
for
,
1942
year ended
the
^.__i-$201,250,483
December
37,939,936
1943
$239,190,419
Deduct:
Loss
.
lines
on
retired
abandoned
and
not
'
i transferred
Stock
Depreciation
extraordinary
and
i
$3,460,902
to
Rolling1
Reserve for
post-war
•
amount
of
Depreciation
credit
excess
from
Steamship '
Reserve
780,714
363,680
Debit
7,956,201
Profit and Loss Balance December 31, 1943, as per
Sheet
-
Balance
$231,234,218
$42,982,'fl8 was $2,628,451 greater than
Subsequent to the end of the year, a dividend
of 2 per cent, on the Ordinary Stock, amounting to
$6,700,000, was declared from the earnings of the year
1943, payable March 31, 1944. This dividend is not de¬
Net Income of
in 1942.
ducted from the Profit and Loss balance at December
31, 1943, shown above.
^
The comparative results of railway
follows;
1943
'
1942
Earnings
$49,211,567
were
Increase
—$297,107,791 $256,864,091
208,676,402
——
Including taxes
$40,243,700
39,219,822
$48,187,689
83.44%
72.82%
,
81.24%
$1,023,878
,
71.54%
,'
2.20
-
1.28
Gross
Earnings were $40,243,700, or 15.7%, greater
than in 1942, a year in which the earnings had reached
their highest previous level. In each quarter of 1943
the earnings were higher than in the
corresponding
quarter of any previous year in your Company's history.
Freight Earnings increased by $22,045,259, or 11.3%.
can be attributed
principally to further ex¬
pansion of the Dominion's industrial output, the enlarged
export trade brought about by improved shipping con¬
ditions and the development of
heavy grain movements
both to Atlantic coast ports for
export and to points in
This result
Eastern Canada and the United States to
provide winter
feed for livestock.
Owing to the
Canadian and United
States
joint policy of the
Governments in diverting
ship tonnage to the grain traffic, it was possible
to transport to lake ports a
large amount of the grain
more
had
or
29.4%. Ex¬
Working Expenses increased by $39,219,822, or 18.8%.
592,157, and the ratio of
expenses to gross
earnings was
72.82% compared with 71.54% in 1942. Several factors
contributed to the increase in the ratio. The wartime
cost-of-living bonus paid to employees amounted to
approximately $14,000,000, an increase of $2,000,000 over
last year. The bonus rate of $4.25 per week which had
been in effect since August 15, 1942 was increased under
Order-in-Council P.C. 5963 to $4.60 per week, effective
November 15, 1943. Higher prices for locomotive fuel
added approximately $3,000,000 to the year's expenses
and many other material costs were higher. As a result
of the extreme weather conditions of the first quarter
of the year, there was an increase of $1,200,000 in the cost
of
snow
and ice removal.
of
accumulated
in
Way
and
Structures
Expenses
in¬
country
and
'from
grain
and
lion bushels in
grain
handlings
products
on your
economic
Improved
Canada resulted in
ments received
conditions
increased by
in Western
a
your
significant increase in interest pay¬
Company on its land contracts.
the steamship replacement and
maintenance funds was considerably larger, while the
by
from
income
Interest
Exchange account showed a marked decrease, principally
due to changes in the trend of interline traffic.
The
,
development
projects
of important w^r
Northern Alberta Railways,
in
increased earnings to the
from which your Company
benefited.
Net earnings of ocean and coastal steamships were
$2,133,530, a decrease of $754,748. There was a marked
reduction in ocean earnings owing to higher costs and
a
smaller fleet, but this was
crease
of
partially offset by an in¬
$1,242,888 in the net earnings of coastal steam¬
ships.
earnihgs of hotel, commumehtion and miscellsH
properties increased by $731,240.
All of your
hotels were closed during the 1943 season, but
new records of business volume, largely arising out of
travel connected with the armed services and war in¬
Net
neous
resort
dustry, were established at many of your Company's
large city hotels, and earnings showed an improvement
of $503,336.
Net earnings of the communications depart¬
ment increased by $260,533.
The high level of general
business activity was responsible for a considerable in¬
crease in ordinary commercial messages, and in addi¬
tion
new
contracts
were
entered
into
for the lease of
miles of track.
ciation of
Shortages
of labour and material continued to be
acute and the year's maintenance programme was again
restricted in the main to immediate traffic requirements.
The amount set aside in the year's accounts for special
reserve
$3,500,000.
of
was
Equipment
Expenses
of
1,243 units.
an
To meet the heavy demands of travel 19
buffet parlor cars and 8 compartment observation cars
were
converted to first class coaches.
The shopping
programme was limited by
maximum of equipment in
been
made
the necessity of keeping a
service and an amount of
increased
Company's
hotel, communication, and miscellaneous prop¬
$2,651,357.
amounted to
Fixed Charges and Guaranteed Interest
Fixed
a
charges decreased by $1,159,667, principally as
result of the debt retirements made without refunding.
Guaranteed
interest
on
Soo
Bonds
Line
decreased
$35,189.
Dividends
Dividends amounting to $5,042,782, being at the rate
of 4% on the non-cumulative Preference Stock, were
declared out of the Net Income for the year.
A
dividend
of
2
the Ordinary Stock,
also declared from the
earnings of the year. This represents a disbursement
of 50 cents a share, amounting to $6,700,000.
Provision
for the payment of this dividend is not reflected in the
financial statements for 1943, as the declaration was made
after the end of the year.
The last previous year in
respect of which dividends were declared on the Ordi¬
nary Stock was 1931, the final quarterly payment of
1Ya% being made on April 1, 1932.
payable March
31,
per
1944,
cent,
on
was
,
aside^ representing the difference
expenditure and that which would
under
similar
traffic
conditions
At the end of the year, 92.4% of locomotives and 97.6%
of freight cars were in serviceable condition, compared
and 97.7%
Profit and Loss Account
in
peacetime. Charges for depreciation amounted to $13,953,484 for rolling stock, $1,549,119 for shop and power
plant machinery, and $126,080 for ihland steamships.
with 93.2%
erties
increased
by
expenditure
of $12,608,896 and included the shopping of 703 engines
for heavy repairs. The maintenance of freight train cars
cost $11,750,766 and included heavy repairs to 24,857
cars.
Cast steel truck frames were applied to 1,745 cars,
replacing arch bar truck frames. Stabilized trucks were
applied to 278 refrigerator cars. Passenger train car
repairs cost $7,382,426, including the general overhauling
respectively at the end of 1942.
The major item in the charge of
abandoned and on property
$3,460,902 for loss on
retired and not re¬
placed pertains to the retirement of leased spur lines
and trackage of the Columbia & Western Railway Com¬
pany which formerly served certain mining properties
lines
in the Province of British Columbia.
,
r
A net
Transportation Expenses increased by $12,733,268. The
ratio to gross earnings was 32.18%
compared with 32.27%
in 1942 and for the fourth successive year constituted a
new low record. Increased
wage costs and higher prices
for fuel and other supplies added to the expenses of train
operation but these were wholly offset by the increased
earnings per train mile. Slight variations in operating
factors are shown by the following indices:
':0O" ;'V
r1943
Freight train load—gross tons1,729
Freight car load—tons33.7
Freight train fuel consumption—pounds per
1,000 gross ton miles
106
Freight train speed—miles per hour
15.9
Gross ton miles per freight train hour———
27,435
Passenger miles per train mile
132
-
:1942
1,711
31.9
101
16.7
28,514
.
110
Tons carried one mile and passengers carried one mile
increased 10% and 25% respectively but the additional
business was handled with an increase of only 5% in
charge of $3,350,905 to Profit and Loss resulted
from an appropriation of $20,000,000 made for extraor¬
dinary post-war retirements of rolling stock and a credit
transfer of $16,649,095 from steamship depreciation re¬
serve.
The appropriation to augment rolling stock de¬
preciation reserve was made in anticipation of charges
which will arise when it becomes possible to replace
certain types of rolling stock by units incorporating the
latest technological improvements.
The transfer from
steamship depreciation reserve was necessary to correct
an
unbalanced relationship between that reserve and
steamship investment. This condition had developed
through successive losses in the fleet, accompanied by
credits to the reserve of the entire amount recovered in
respect of basic values of steamships sold or lost, which
under the British Government War Risk Re-insurance
Scheme included a substantial element representing
compensation for increased cost of tonnage replacement.
train miles.
terminal
bushels, compared with 181 mil¬
1942, and were slightly in excess of the
interest, exchange, separately oper¬
Net income from
ated properties and miscellaneous sources
.
the rate of
long distance telephone facilities. Postal Telegraph, Inc.,
your
Company's principal connection in the United
States, was merged with The Western Union Telegraph
Company on October 8, and mutually satisfactory ar¬
rangements were completed for interchange of traffic
with the new system.
Net earnings of miscellaneous
properties decreased $32,629. The provision for depre¬
Land Accounts
Other Working Expenses increased by $9,512,823. RaiL
tax accruals amounted to $31,548,645, an increase
way
or 37%, Grain
lines were 257 million
Company of Canada, Limited, were again at
$2.50 per share.
$401,261.
re¬
and. Smelting
$8,840,465. During the year 1,736,337 treated
and 1,252,608 untreated ties were placed in track, 539
single track miles of new rail were laid, and rock ballast
was applied to 72 miles of track, ?ie plates to the num¬
ber of 2,894,905 and rail anchors to the number of
1,341,298 were installed. The; examination of rails for
hidden defects by the Sperry detector car covered 8,890
elevators.
$12,200,000,
increase
an
Dividends
$31,964*
Mining
The : Consolidated
from
continued
Exclusive of taxes, the increase in expenses was $32,-
$16,270,751,
Dividend income increased by
ceived
Northwestern Canada brought
revenues were the largest since 1921.
Revenues
sleeping and dining cars, from news services and
from demurrage all reflected the general increase in;
business activity and travel.
have
operations
Expense ratios:
which
•
to
$409,717, or 2.6%.
from
was set
between the actual
Working Expenses (including taxes) 247,896,224
Excluding taxes
the
of
amounted
Income
press
$2,700,000
Railway Earnings and Expenses
Net
$6,367,649,
$8,133,266. Locomotive repairs involved
Miscellaneous—Net
Earnings
*
Other Earnings increased by
Maintenance
3,350,905
—
Gross
sustained high level of civilian travel,
with 156 miles in 1942.
16,649,095
r
Exchange adjustment in respect of steamsnip
insurance
recovered
in
sterling—net
as
a
volume of passenger traffic surpassed previous records.
The average passenger journey of 150 miles compared
Depreciation on
bridges, buildings and other structures was accrued for
a full
year, and amounted to $5,640,423.
$20,000,000
transferred
forces and
maintenance
retire¬
ments
Less
property
on
replaced-;
Amount
Passenger Earnings increased by $11,830,792, or 30.1 %.
Owing to continued heavy movements of the armed
Maintenance
$37,939,936
Account
Profit and Loss Balance December 31,
Balance
Other
creased by
and Loss Account.——.
Profit
greater by $546,951.
Other Income
million, com¬
pared with 22,600 million in 1942 and 18,423 million in
1928. Owing to greater dispatch in the
handling of cars
the large increase over 1928 was actually
accomplished
with 5 million less car days. The average revenue per
ton mile was 0.87 cents, showing little;
change from
last year's figure of 0.86 cents.
i
.
5,042,782
Balance transferred to Profit
of dining and buffet service
and' news service expenses were
creased by $88,630. Expenses
increased* $615,635,
Ton miles for the year totalled 24,950
Stock:
paid August 3, 1943—£564,070—
payable February 1, 1944-£564,070
2%
■■
bushels less than at the end of 1942.
.
..
Working
"1925-1929 average of 254 million bushels. It is estimated
that the wheat remaining to be moved by all railways
from the Prairie Provinces amounted to 470 million
bushels at the end of the year, approximately 60 million
of
$6,627,665, and included
a
provision of $27,750,000 for
the estimated amount of Dominion Income and Excess
Profits taxes, in respect of which the final liability has
not yet been determined.
Traffic expenses were de-
135,352 acres of agricultural lands
were
sold for $702,470, an average price of $5.19 per
acre.
Included in this total were 224 acres of irrigated
land, sold at an average price of $29.74 per acre.
During the
year
Cash received on land account totalled
$4,651,399, in-
Volume1 159
THE COMMERCIAL &
Number 4268
-
advertisement
advertisement
'
and royalties from coal lands
-and gas and petroleum rights. The generally improved
cash income position of Western farmers is reflected in
increased land account receipts.
Disbursements for land
and irrigation expenses, including taxes, were $1,391,297,
leaving net cash receipts of $3,260,102. This was an increase o£ $2,099,354 over the previous year.
eluding $706,345 for rents
granted in 1942 to land contractcontinued, with minor exceptions, through¬
out the 1943 crop year. The Iptal amount of assistance'
'to holders of farm contracts since 1932, when this policy
portion of
■
pated peak period of cost under
and discontinuance from other causes,
on
of certain assets has been effected:
them more consistently in relation to
of reporting the earnings and expenses for
properties. The investment in Hotel, Com¬
and Miscellaneous Properties has been seg¬
A reclassification
the various
munication
Equipment obligations to the amount of $4,154,were paid; and Consolidated Deben¬
to the amount of $268,000 pledged under
Series "D" was released and cancelled. On January 25,
the balance of $3,085,385 due to the Dominion Govern¬
ment on the Equipment Lease dated December 15, 1937,
was
prepaid. Securities and cash on hand with the
Trustee of the Equipment Trust maturing July 1, 1944,
increased by $2,457,944, and in addition the Trustee,
under authority of the Trust Agreement, purchased and
cancelled $665,000 of the Equipment Trust Certificates.
StOck
The Union Trust Company
entered into an agreement
On March 1,
Trustee
of Pittsburgh
under which
f
equipment which cost, at the time'
of construction,
$26,000,904 in Canadian funds, is
leased
Company at a rental equal to the instalments
principal of and interest on the Equipment Trust
.Certificates.
.
to
your
of
Collateral Trust Bonds,
maturing October 1, 1945, were called for redemption
on April 1, and the $19,000,000 4%% Collateral Trust
Gold Bonds maturing September 1, 1946, were called
for redemption on September 1.
The funds to meet
these two Issues were deposited with the respective
Trustees.
During the year $120,500 principal amount
The
,
.
$10,500,000 3% Convertible
of matured but
unredeemed Collateral Trust Bonds was
paid, and the amount remaining unpaid on an aggregate
principal amount of $1,100,500 of such issues has been
deposited with the respective Trustees and eliminated
from current liabilities.
In addition the following
I securities were purchased and cancelled—3 V2 % Con¬
vertible Collateral Trust Bonds due 1951 to the amount
of $2,000,000 and 5% Collateral Trust Gold Bonds due
1954 to the amount of $600,000,
Consolidated Deben¬
ture Stock to the amount of $41,183,200, pledged as
collateral to the issues of Collateral Trust Bonds of
which the above mentioned bonds formed part, was
;
released and cancelled.
1,
On. February
Serial
4%
Secured Notes to the
$350,000 and 3% Serial Secured Notes to
the amount of $287,400 were redeemed, and Consolidated
Debenture* Stock to the amount of $1,092,000 was re¬
leased and cancelled. On March 10, $3,750,000 principal
amouht Of 4% Notes was refunded by the issue of notes
to the same amount, at the reduced rate of 3%, such
5
being secured in the same manner and maturing
same dates as the notes retired.
In connection
with this refunding Consolidated Debenture Stock to the
notes
the
on
amount of $700,000 was
On December 1, 3 V2
paid.
released and cancelled.
% Serial Secured Notes due De¬
of $2,000,000 were pre-
1, 1945, to the amount
cember
On
such
prepayment
Consolidated
Debenture
of $1,200,000 was released and cancelled, and 60,000 shares of capital stock of The Consolidated Mining and Smelting Company of Canada,
Stock to the amount
'
*
Limited were released.
.
:
/
Canadian Pacific Air Lines,
shall be filed has been extended to
Limited
part of the activities "of the British Common¬
wealth Air Training Plan involving your Air Observer
Schools and Overhaul Plants was considerably expanded
revenue
That
of
Air Observer and Elementary Training Schools
flew over 57,000,000 miles. At the end of the year your
Air Lines, including the Training Schools and the Over¬
haul Plants, had approximately 9,500 employees.
substantial increase in the volume
compared with the previous year,
increased in greater degree, owing largely to
the cost of operating and maintaining aircraft under
existing wartime conditions. In addition, the cost of
pilot training was heavy, and there were non-recurring
expenses
charges for reorganization
and development. The opera¬
which,
however, was not unreasonable in all the circumstances.
Provision for the accumulated loss to the end of the
year, amounting to $236,573, was made by a charge to
for
the
year
resulted in a moderate loss,
Other Income.
has been made of the possibilities of
development of your Company's air activities,
number of new routes and extensions of existing
in the international as well as the domestic field
Detailed study
a
routes
proceeded with whenever this is
Government policy.
will
be
operate between
On
October
22,
'
points in the United States and points
pressed for hearing before the Civil
the 5% First Mortgage Debenture
and North Western Railway Com¬
pany
amounting to $273,700 matured and were paid.
transactions referred to above resulted
in the net ^tirement of $28,981,398 of bonds, notes and
other obP^tmns. the discharge of a contingent liability
The financial
of
$273,700, a reduction of $44,443,200
in the amount of
Consolidated Debenture Stock pledged as
the return to the
collateral, and
Company of the balance of the pledged
capital sto^k of The
Company of ^anada,
Consolidated Mining and Smelting
Limited.
on
traffic
international
will
be
$2,000,000 in
sustained by
Company as a result of the suspension from May
1943, by the Interstate Commerce Commission, of
general freight rate increase which had been granted
United States, carriers in 1942.
your
15,
the
to
rolling stock placed in service during the year
Mikado type locomotives;
switching locomotives; 1,400 box and 500 70-ton
New
included 5 Pacific type and 20
5 Diesel
gondola cars; and 50 cabooses.
To
the greatly
for
provide
increased patronage of
number of improvements
the travelling public have
Windsor Station in Montreal, a
accommodate
to
and
serve
The station coffee shop has been re¬
modelled and its capacity doubled, a public announce¬
been
completed.
ment systenj
has been installed, and the
concourse
and to increase the
to travellers.
The installation
main entrance
structurally altered to improve
the station has been
to
its appearance
t
accessibility of the
4
. ,;
of the automatic block
signal system
to expedite
Chapleau and Schreiber, designed
traffic on the Algoma District, was nearing
completion
by the end of the year. This improvement will not only
increase the capacity of this line, but will give greater
safety and dispatch in
operation.
Wartime Activities
:
needs of the Dominion continued
expand in 1943 owing to the increase in production
The transportation
to
of munitions of war
abroad.
and the intensification of
hostilities
with satisfaction that in
congestion develop or failures
Your Directors report
instance
no
did
traffic
in supplying
essential transportation.
The record
of the
that, if Canada is to occupy the
transportation which its geographical situa¬
the abilities and experience of its citizens in
justify, there is urgent need of an- air policy
tion
and
which
will
equal to that
Canadian industry an opportunity
enjoyed by the citizens of other countries.
afford
Minneapolis, St Paul & Sault Ste.
Bonds of the Lacombe
An annual loss of approximately
1941.
in
occur
this field
'
conformity with the regulations of the Wartime
Board, freight rates on Canadian traf¬
fic remained at the level in effect in the base period
In
Prices and Trade
Aeronautics Board.
Provision was
balance of this issue aggregating in principal amount
$503,700 with a corresponding reduction in current lia¬
bilities.
weight loads for specific commodities.
in Canada are being
place in air
paid.
greater utilization of freight cars
facilities and of expediting the
movement of freight traffic, the Transport Controller
also issued orders requiring the loading of freight cars
to their maximum capacity and prescribing minimum
interest of
In the
and other transportation
interim
During the year, $156,200 principal amount
but unredeemed 4%% Sinking Fund Note
were
was followed
all tourist ex¬
cursion fares,
permitted by
policy announced by the Government
would exclude private operators from the field of inter¬
national operation, while in the United States many
applications by competing air lines for licenses to
The
An order cur¬
between
further
and
to
public holidays and for week-end travel.
tailing train service to summer resorts
shortly afterwards by the suspension of
your
Your Directors feel
of matured
Certificates
made to meet the unpaid
railways
Canadian
While there was a
Effective April 15, he also directed
cease selling reduced fares for
could be operated.
carried in connection with vital continental
defence establishments in Northwestern and Northeast¬
ern Canadaadditional modern aircraft were allocated,
to your Air Lines. To provide for the traffic referred
to, extensive new radio communication installations
were also required, as well as additions to ground equip¬
ment, shops and airport facilities.
To finance these
capital expenditures your Company advanced an amount
of $2,027,000 during the year.
Transport planes 6f your Air Lines were' flown
6,133,751 miles in revenue service during 1943, an in¬
crease of 17%
over the previous year.
Passenger miles
totalled 24,031,000, an increase of 82%; mail pound miles
were 926,994,000, an increase of 91%; and freight pound
miles were 1,825,774,000, an increase of 18%.
of traffic handled as
moving necessitated the
The record volume of traffic
imposition of further limitations on passenger service
by the Transport Controller.
Parlor car service was
suspended between the cities of Ottawa, Montreal and
Toronto, and restrictions were placed on the number
of sleeping cars and the number of extra passenger trains
and of extra sections of regular passenger trains which
preparation.
Aircraft operated by the personnel
June 1, 1944.:
Rates and Services
cargo
during the year.
The plaintiffs have ninety
1940.
Report for the year
days in which to appeal against this judgment. The time
within which a plan of reorganization of the South Shore
ited, in the development of a coordinated air transporta¬
tion system. For the inovement of essential personnel
and
States in and for the
Fourth Division, delivered judg¬
ment in favour of your Company on December 27, 1943,
in the action instituted by Hugh W. McCulloch and other
bond holders to which reference was made in the Annual
District of Minnesota,
During the year further steps were taken by your
subsidiary company, Canadian Pacific Air Lines, Lim¬
tions
of
amount
employees' brief is in the course of
owing to less ore being handled.
The District Court of the United
applied to the National War Labour Board for an order
directing the railways to grant the increases, and later
filed a brief in support of the application. A reply to
the
of this Company were $1,000,744, com¬
declined slightly,
representatives of ail classes of employees affili¬
ated wtih international organizations presented to the
Canadian railway companies a request for increases in
basic rates of pay sufficient to establish the same, or
substantially the same, rates of pay as those paid like
classes of employees of United States railways.
The
companies replied that they were not prepared to enter
upon negotiations on the basis of this request, it being
their view that it disregarded the wartime wage policy
of the Government. On September 15, the employees
$18,000,000 principal amount of Equipment Trust Cer¬
tificates was issued, guaranteed as to principal and in¬
terest by your Company.
This issue, designated as
Series "F", maturing in equal semi-annual instalments
from October 1, 1943 to April 1, 1953, inclusive, is
payable in currency of the United States of America
and bears interest at 3% per annum. Under the arrange¬
ments for this issue,
Net earnings
pared with $946,969 in 1942. Gross earnings were $4,300,194, an increase of $156,318. Passenger and express
traffic both exceeded 1942 levels,. but freight traffic
The
•
Shore and Atlantic
South
Duluth,
Railway Company
5,214
matured and
as
The
652
2,440
1,805
Wage Negotiations
Serial
769
317
of age
^
of age, inclusive
of age, inclusive
of age
From 65 to 70 years
Over 70 years
will be available in the near future.
that they
From 60 to 64 years
„
ture
Preparatory steps in connection with the issue of the
new securities are now being taken, and it is expected
1942.
Under 60 years
Minnesota,
of
designated by your Company.
agers was
the total number
payroll at the end of the year was greater
Distribution by ages was as follows:
regated and shown under a separate caption. Invest¬
ments in: all controlled companies, Other than in those
leased railway companies which are comprised in the
railway system from which your Company's gross earn--;
ings are derived, have been merged under, a single
caption "Stocks and Bonds -— Controlled Companies."
.Investments in Jointly" Controlled Railway Companies
have been transferred to Miscellaneous Investments.
Finance
the pension
by 412 than at the end of
in order to group
the manner
the pension plan.
employees pensioned during the year
After allowing for deductions owing to death
776.
was
Balance Sheet
District
the
for
and
Division, on June 18, 1943. In accordance with
the provisions of the plan three reorganization man¬
agers were designated to put it into effect and carry
it out under the supervision and control of the Court
and subject to any requisite approval of the Interstate
Commerce Commission. One of the reorganization man¬
Fourth
The number of
inaugurated, has been $21,311,811.
in
States
United
Directors authorized an increase from $700,000 to
$1,000,000 in the special contribution made annually to
the Pension Trust Fund to assist in meeting the antici¬
your
'
was
,
levies in respect of employees
who come under the United States Railroad Retirement
Act amounted to $4,592,683.
In view of the further rise
in the level of employment and increased rates of pay,
Pension Trust Fund and
were
employees covered by the
on January
17, 1944, and
made retroactive to February 1, 1943.
The plan of reorganization which had been accepted
almost unanimously
by the security holders voting
thereon, was confirmed by the District Court of the
reached
agreements
wage
Company's pro¬
pension allowances, its contribution to the
non-operating
of
thereon,
Charges to working expenses for your
4
concessions
The
holders
advertisement
''"'
Pensions
-
1319
FINANCIAL CHRONICLE
Company
Marie Railway
*
of this Company were $5,141,093, or
$1,156,659 greater than in 1942. Gross earnings amounted
to $26,585,111, an increase of $3,954,269.vThe increase
in earnings resulted primarily from business connected
with the war. Working expenses for the first time in¬
cluded
charges for depreciation
of road property,
amounting to $484,977, which were made in conformity
with a general order of the Interstate Commerce Com¬
mission, effective January 1, 1943. The year's expenses
also included provision for the back pay, and taxes
-Net
earnings
year's activities again demonstrates that efficient
rail transportation is a vital force in the prosecution
of the
war.
The labour turnover was more
normal
reason
than three times the
rate, and operating difficulties were for this
accentuated. The training of inexperienced em¬
ployees has presented a serious problem
and senior employees.
Patrons of your
to your officers
Company have
helped greatly by accepting the unavoidable inconve¬
niences which attended the movement of passenger and
freight traffic during the year.
extended to meet the demands
During the year 34 miles of
104 new plants
throughout the Dominion.
The Valentine tank project, which was begun at your
Company's Angus Shops in 1940, was completed during
the year. A total of 1,420 tanks, including large quan¬
tities of spare parts required for battle damage repairs
Railway facilities were
of
expanded production.
industrial tracks were provided to serve
"
ADVERTISEMENT
•
,,
plates,
rail
anchors
heavier
Additions
and
rolling
Additions
In addition to specifying materials
and approving workmanship, the contract with the In¬
dian State Railways calls for supervision of re-erection
of the locomotives when they reach the Far East.
by your Company.
,
signals
with
999,418
•
to
shop
to
rolling stock
appropriation for
and 3 work units.
In
were
in
order
further
*
rolling stock makes provi¬
new
steamships and part of your coastal fleet
operated throughout the year under the Ministry
of War Transport of the United Kingdom.
Some 53
honours have been won by officers and men of your
fleet in various parts of the world. The exploits for
which these awards have been made reveal the leader¬
were
to
British
of
Canadian Pacific
amendments
the Traffic By-Laws
that
Laws
Nos.
to
the
lieu thereof of
panies
and Regulations of your
and
Act
Advances to Controlled
of your Company should be
panies
The
were
Fund
13,450,000
-
.
—
,
—
Replacement Fund
10,387,121
...
_
47,879,560
.
centage
Supplies
and
$ 30,079,986
—
States
of Stock
Holdings
of Stock
19.12
163
.61
53.42
26,487
96.35
21.23
75
.33
Insurance
real,. Chairman
Unadjusted
Debits
1,110,811
2,906,234
——
—
4,233,095
—
$1,557,280,485
Capital Stock:
Ordinary Stock
Preference
Directors record the
March,
and the
—
$335,000,000
Non-eumulative—
137,256,921
...
Stock—4%
472,256,921
$
Consolidated Debenture Stock $397,826,229
Perpetual 4%
,i
-'
Less: Pledged as collateral to bonds, notes
and
equipment obligations—..
YYVaYY.-
v.-Y*
':
-
r
.
102,388,000
.
....
•-
,
Less:
P.C., of London, in Sep¬
Y
$133,313,600
Securities
of
Trustee
OQ^ AOO
■
.
Funded Debt
cash deposited with
Equipment Trust—
-
'
and
5%
tember.
17,395,856
115,917,74*
.
Current Liabilities:
Fitting tributes were paid to the outstanding services
rendered by Sir Edward to your
at their meeting
Pay Rolls
Company and to the
Shareholders
Accrued
P.O.,
was
Fixed
Director in 1926.
the
of
2,521,391
—
21,050,660
Other Current Liabilities
48,059,157
—
appointed
Government
Unemployment
$
Relief
London, Mr. McKenna gave
in
Declared
Deferred Liabilities:
During his association as a member
Board resident
Guaranteed
and
Charges
—3,398,302
1,629,973
Dominion
a
4,237,461
Payable
Accounts
Interest
ing held at Montreal in the following month.
The Rt. Hon. Reginald McKenna,
10,450,212
Balances..
Unmatured Dividend
of Proceedings of the Annual General Meet¬
the Report
Traffic
Miscellaneous
incorporated in
as
4,771,158
$
—
Vouchers
Audited
Net
resolution passed by the Direc¬
held in April, 1943, and also by
the President and the
Miscellaneous
-1
2,447,223
3,648,720
:
—
v
6,095,943
•
and
counsel
prepared which by request was presented
during the year to the Special Committee of the House
of Commons on Reconstruction and Re-establishment.
occupied
showed
were
service of
highest value to
the
Dominion • of Canada.
Reserves and
regarded
noblest
the
—Hotel
plans and schedules of improvements to your
property to place it in a position to participate fully •'
in that period of active
employment and business ex¬
pansion which may reasonably be anticipated to follow
upon the termination of hostilities. The studies
are, of
Investment
Insurance
Mr. George
W. Spirthey, C.M.G., was appointed a'Di¬
rector and Mr. Aime' Geoffrion,
K.C.,
member of the Executive Committee
cies
caused
by the
or
| Beatty.
death
was
appointed
to fill the
17,648,413
—
Reserve
10,387,121
Y
Unadjusted Credits
5,105,446
vacan¬
Premium
Land
on
and
X
■
at the
approaching annual meeting.
$1,557,280,485-
They
are
ERIC A. LESLIE,
To
the
Shareholders,
■
In accordance with licences
granted by His Majesty's
Government in the United
Kingdom, measures have
V
We
Sir Edward R.
have
compared
during the war, and for this purpose, in anticipation of
your
The
true
Officers and Employees
officers and employees of
your
the
Company in all
branches of its service have evinced their keen appre¬
■t
to
the
of
war
Directors
the
vital
effort
of
importance
the
United
gratefully acknowledge
of
transportation
Nations,
the
financial
and
and
year's
The
31,
in
ciation
Comptroller;
Y^YYYYYYY
Records of
the Canadian Pacific
Balance
Sheet
related
and
and having:
therewith,
schedules
we
certify that in our opinion it is properly drawn up so as to show the
Peacock, G.C.V.O.
Income
Y
and
,<■,
Company:
Books and
the
examined
1
'
Railway Company for the year ending December 31, 1943,
Mr. John W. Hobbs
Mr. R. S. McLaughlin
....
Y/v
looking toward the replacement of some of
class freight vessels lost
by enemy action
r
Hon. Charles A. Dunning, P.C.
"
1
.
Canadian Pacific Railway
Mr. D. C. Coleman
.
'
Vice-President
eligible
for re-election:
V Y.."
231,234,218»
Balance—.
The undermentioned Directors will retire from office
.
62,533,037
—
—
...
Loss
Retiring Directors
would, in addi¬
,
34,565,952:
Capital and Debenture Stock...
Surplus
Profit
Your Directors believe that it will be wise to
plan for
[
-
5,353,560
j
291,179,28*
\
;
12,888,176
-
Contingent Reserves
a
Edward Wentworth
of Sir
26,856,648
Other.
and
—1
Reserves
'
115,859,100
Stock
—Steamship
leadership when the
qualities of
83,630,820
-
—Rolling
great Imperial statesman who
as a
$ 13,450,000
.
...
Depreciation Reserves—Road
safety and freedom of all men were in dire peril.
to prepare
Unadjusted Credits:
Maintenance Reserves
He
distinguished position in public affairs, and
a
he will be
Company expects to play its full part in the
internal and external commerce of Canada,
rendered
Company and to the
your
post-war
confirmation, your Directors authorized an appro¬
priation of $11,409,900. Other capital
appropriations for
the year 1943 which were
approved by your Directors,
subject To your confirmation, totalled
$4,371,388, of
which $2,967,094 was for the
purchase of 650 50-ton
216,051
$
—
5.18
2.71
Company, in
of the
Hon. Reginald McKenna,
Rt.
was
^
sY
15.04
Board, Sir Edward Went worth Beatty, G.B.E., of Mont¬
tors
earning power of your
property, act as a valuable stimulus to employment and
business activity in the country.
Other
death during the year of two members of the
loss by
give ground for the assumption that it is
possible to plan for an expanding economy in Canada.
The study of post-war activities by your Company was
assigned to a committee of senior officers, and an interim
programme of five to ten years which
tion to its direct benefit to the
■
-
Prepaid
Unamortized Discount on Bonds—;
66.14 '
Changes in Directorate
year
concerned solely with such improvements
extensions as are considered prudent investments.
43,525,516
Unadjusted Debits:
27,306
It is with deep regret that your
to
course,
17,021,872
Liabilities-
distinction should have
committee of officers
581
6.23
19,815,732
Conductors*
124,539,253
13.64
3,442
14,096,152
Agents' and
of Stock
13,180
—
Balances
Cash
centage
Countries—
252,714,223
—
Assets:
Per-
No. of
58,485
unused natural resources, and the opportunity for a
considerable increase in population to benefit by them,
26,659,459
20,553,229
Insurance
TOTAL
PREFERENCE
16,067
British
United
Other
A good deal of attention is now being directed to
post-war economic plans.
The great extent of the
cars.
/ 2,290,803
Miscellaneous Accounts Receivable
25,796
...
Other
Reconstruction and Re-establishment
wood-lined box
to
Advances
_
Maintenance Fund
Company at
your
Percentage
Dominion of Canada, in a
Beaver
32,142,105
Unsold Lands and Other Properties
follows:
as
,
Com¬
«j
and
Collectible
Steamship
Holdings
the Report.
the
33,949,193
Other
and
,
Settlers
Material
holdings of the Capital Stock of
No. of
which
marked the fiftieth anniversary of its opening in 1893.
In recognition of this unique event in its history, an
etching of the Chateau appears on the front cover of
been taken
_
Deferred Payments on Lands and Townsites
Company, which will be sub¬
Per-
countries concerned.
Capital Expenditures
—
Mortgages
...
Current
in connection with the
a
Companies. $ 65,402,759
Miscellaneous Investments
United Kingdom and
instructions to the
„
101,872,734
Stocks and Bonds—Controlled
deemed advisable
Stock Holdings
A number of special
transportation for the
distinguished delegates and their staffs. The exceptional
suitability of this famous hotel for the purpose, and
the well co-ordinated services of your Company, includ¬
ing rail, communications, air transport and express,
contributed greatly to the success of the Conference.
Appreciation for your Company's part in the arrange¬
ments of the meeting has been expressed by Conference
principals, as well as by Government officials of the
the
36,971,006
Miscellaneous
and
—
took place in Quebec in August.1
trains were operated to provide
and
129,693,871
______
Steamships
Hotel, Communication
Properties
mitted for your approval and confirmation.
Conference of the leaders of the United Nations which
Your
—
Coastal
and
Ocean
By-Law No. 99 containing Traffic Rules
Canada
report
1
$1,175,793,902
Railway
was
ORDINARY
combine
"
Dominion of Canada Securities
the
'
Stocks and Bonds—Leased Railway Com¬
64, 76, 84, 89 and 94 and the enactment in
Your Company had the privilege of setting aside the
Chateau Frontenac for the accommodation of more than
in
31, 1943
Improvements on Leased Property—96,813,831
Conference
Frontenac
December
Railway, Rolling Stock and Inland Steam¬
ships
—
$810,442,460
Directors have approved certain ap¬
your
December 31
Chateau
,
Railway> Company
Sheet
Balance
Property Investment:
it
propriate changes therein, involving the repeal of By-
31,382 officers and employees were purchasers of War
Savings Certificates throughout the year under the pay¬
roll deduction plan.
the
I
COLEMAN,
Assets-
the
serve
Columbia
changes in traffic conditions, it
in your
revised and
to
C.
Other Investments:
view
In
and campaigns have evoked enthusi¬
astic response from officers and employees. In the five
Canadian Victory Loans, your Company and its em¬
ployees have subscribed a total of $90,756,850. Of this
amount $67,142,000 has been taken by your Company
and by its Pension Fund and the Pension Fund of the
Canadian Pacific Express Company.
An average of
fallen
Na¬
Directors,
D.
Revision of Traffic By-Laws
Patriotic appeals
a rare
,i
i
•
Montreal, March 13, 1944.
Company, which is leased to your
Company, from Haynes to Osoyoos, a distance of ap¬
proximately 10 miles, and to issue securities not exceed¬
ing $50,000 per mile in respect of this extension.
personnel from a stranded transport plane.
fitting that such
the
For
486,927
Kettle VaUey Railway
was
'
to the end
matter of deep regret that 377 of these
a
545,008
fruit-growing district
is proposed to seek
authority of Parliament to extend the line of the
Southern
the
It
.'
<4
.
up
employees have lost their lives in the common cause.
It is
General
the United States of America
in the search for, and rescue of,
hundred persons engaged
1
»
tions.
Branch Lines
awarded the Air Medal of
seven
s'
pride that,
17,067 employees of your Company were oin
of the year,
>
.
for meritorious service
; Quebec
'
•!'
w
active service with the armed forces; of the United
sion for 25 Pacific and 10 Mikado type road locomotives,
10 Diesel switching locomotives, 2,190 freight car units
purchasing
ship and resourcefulness of the men serving
ships.
'
.
President.
The
-
Your ocean
\
.
692,577
machinery
Additions and betterments to communication facilities—
department has been at the disposal of the Department
of Munitions and Supply and the Navy, -Army & Air
Force Institutes since the outbreak of the war.
army
J'
,
16,800,239
betterments
'
•
"Y '
Y.
i
Your Directors report with
337,571
stock
and
in¬
satisfaction.
great
726,582
.
side track accommodation—....
betterments
afforded
East
Far
felt for those who still remain in enemy
«'
j'•
t
"
have met the heavy de¬
The repatriation, during the
hands.
>i
..
Additional terminal\bnd
New
branch line tracks
section
Installation of automatic
past year.
the
in
Anxiety is
2,356,437
roadway
1,186,540
Replacement of rail in main and
stock, which
of the staff of your Air Lines
miscellaneous
betterments
being manufactured in Canada for the Indian State
and the Jamaica Government Railways, was undertaken
members
and
the
they
of several of your employees who had been
terned
$290,430
_
and betterments to stations, freight sheds, coal¬
ing and watering facilities and engine houses.,.
are
Four
structures
Additions
Tie
organization and experience of your
of
of
mands
year,
;
.
The
year,
which
with
fidelity
in permanent
;; form
mountings of various types continued
to be produced in quantity at the Ogden Shops in Cal¬
gary, involving the full use of the former locomotive
erecting shop at that point.
The
YYYYYYYYYY' ADVERTISEMENT
-
Replacement and enlargement
with many other important
of locomotives and rolling
"
present
Naval guns and
The inspection
ADVERTISEMENT
,
priations of $24,478,980 for the
principal items are as follows:
contractors. Shop facilities released :,
from tank production are now being used for the pro¬
duction of main marine engines and condensers for
achieved by other
frigates and corvettes along
items for the Navy.
-
-
Your approval will also be requested for capital "appro¬
cost which compares
a
'
•.
maintenance requirements, were produced^
most favourably with results
and ordinary
at
Thursday, March 30, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1320
of
Loss
&
have
of
the
Company
Accounts
at that
correctly
been
verified
owned
by
aa
by
date,
set forth
Y
securities
1
'
and that the
the result of
Y-:
the Company at December
examination
of
those
securities
custody of its Treasurer and by certificates received from such
depositaries as are holding securities for safe custody for the Company.;
your
the competence and
the
operations.
records
1943,
the
position
Profit
PRICE, WATERHOUSE & CO.
Montreal, March 10,
1944.
Chartered Accountants.
Volume
Russia
investment account
should contain gold mining stocks
at this time.
This, however, does
1800-1850
not exclude the
1911-1920
35,500,000
182,600,000
205,800,000
185,400,000
317,500,000
be existent? in
wnich can turn
out gold at a very low cost.
It
applies to the high-cost mines and
that
lation
gold
those
which
in price
future
discount
rise
stocks is the first and most com-
hionly: quoted point, the tradi¬
tional history of gold with its im¬
position as the best
monetary basis. Gold was always
gold and it always will be.
The
most
durable,
acceptable,
and
compact wealth that the world has
pregnable
Therefore it is stated that
known.
we
expect it to continue to be
can
so.
The
favorable
second
point is
that the most powerful countries,
and the United
States have such a large stake in
the existing gold and its future
output that it is inevitable that
they will see to it that it con¬
tinues as the monetary basis.
In
other words, the "vested interests"
are strong enough to impose their
Russia,
Britain,
selfish wishes on the world.
On the basis of these
two fac¬
optimism of the specula¬
tor points to the fact that "the
price of gold always moved up¬
wards"—-a false
premise—and
with his appetite sharpened
by
tors the
the devaluation of 1934 he already
disbounts
rises
further
the
in
price of gold.
Let
and
first
examine these arguments
us
how valid they are.
see
place
In the
that
admit
we
gold
the safest value since the be¬
was
ginning of civilization.
We also
the fact that gold per¬
accept
formed
an
economic function, but
this performance
ent
1931-1940
is not an inher¬
It was cre¬
quality of gold.
circumstances and may be
obviated by them too. Gold served
as
a
means
of facilitating and
ated by
of
Tne
silver,
beads,
They all served
wampum
copper,
shells, etc., etc.
in the same manner
but none of them for as long or
at some tim e
as
well as gold.
Looking at all
these different
moneys we find that what made
them suitable for performing the
function
tributes,
certain common at¬
were
uniform quality
that is,
the most important, their
rarity and the difficulty of ob¬
taining them.
As soon as they
became common, they ceased to
<be serviceable as money. The fol¬
and,
lowing
"The
from
story
New
Yorker" illustrates the point:
the
of
result
roughly
this
15
that
ozs. of gold
banks in 1900, by
the metal was
the past
cumulate
it
at
annual
an
1.
we
tory
assuming
1900,
to
put
lem
history
in
it
money
can
proportion the development
illustrated by the fact that
were is
the
Bank
of
day when it
England in its hey¬
was
the center of the
world's trade used
not more than
$250,000,000 of gold as its collat¬
eral.
Year-end figures for the
a maxi¬
£42,000,000 or
of
completely off the
we are
,
Mr. Smith: "I
ished.
It makes
whether
have
we
rather aston¬
am
difference then
no
of
tion
an ounce
of gold
700,000,000
have
we
ounces?"
Mr. Eccles: "It has made no dif¬
ference to Russia for 20 years; no
the countries of
Most of
while.
gold, that of determining
currencies, was effec¬
values
of
tively replaced.
In the post-war
disarrangement of currencies, all
of them gradually tended to be¬
come
managed
by
government
fiat
and
bookkeeping control, so
that by 1938 no country was on a
pure gold standard, excepting Al¬
bania.
In this country we arbi¬
trarily jlevalued the dollar in or¬
der
raise
to
business activity
on
rencies
.
.
Russians
the
.
mined gold as a
to
have
commodity to sell
the democracies and get foods
they
that they wanted to get and
haven't
looked
necessary
item
gold
upon
■
as
a
support their
to
Yap
natives
In other words,
money
and bought everything on
the island.
of
Since then the people
even
dressed
and
Wall
credit, therefore trade.
the
on
Nothing
sitting
may
be
a
<
American goods.
to increase
the problem by buying
One result
of
In
it.
output which about doubled from
of
their contention they quote the
fact that in the free gold markets
1933 to
of Lisbon,
more
was a
tremendous increase in gold
1939, and all of it
be¬
was
goods, clearly
headed by
Blodget,
Incorporated, is
offering today
180,000 shares of Oklahoma Nat¬
ural
Gas
Company
cumulative
preferred stock, series A 4%%,
$50 par, at $52 per share and ac¬
crued
dividends
from
Feb.
15,
&
group
and
Webster
1944.
proceeds
of
the sale
from
the preferred stock, together
with
than $6,500,000 to be ob¬
through a new bank loan,
and proceeds from the
sale of
$18,000,000 first mortgage bonds,
not
more
tained
will
be
applied by the company
redemption of sub¬
stantially all its present funded
debt, and all its currently out¬
standing
preferred
stock.
The
company plans/to redeem: $16,500,000 of first mortgage series B
3%%
bonds; $3,678,000 of first
mortgage series C 3% bonds; 58toward
the
shares
000
of $5.50
convertible
preferred
stock;
91,055
prior
shares of $3 preferred
to
stock; and
the principal amount of a
pay
$3,500,000
bank
maturing
loan
serially to Oct. 1, 1946.
Upon, completion of the present
financing, the capitalization
of
Oklahoma
will
Gas
Natural
Company
of:
consist
Anyhow it is versions.
The new preferred, which car¬
country we
must discourage new gold pro¬ ries voting rights, is subject to
duction in order not to endanger redemption at $55 per share be¬
and aggravate the problem of our fore Feb. 1, 1949; at $54 if re¬
deemed on or after Feb. 1, 1949,
existing stores of metal.
and before Feb. 1, 1954; and at
When the war ends we* shall
find ourselves in > possession of a $53 if redeemed on or after Feb.
tas for
metal.
new
that
this
in
lot
of goods
that the world will
urgently, but we know that
other countries have no gold br
other wherewithal to buy these
need
goods,
must be found
trade, probably
the
by credit through
a
a
fore¬
conclusion: that international
trade in the future will be govern¬
ment
regulated
which will
even
in the U. S.,
trade
mean
by book¬
keeping entries rather than bv
In
a
solution
support
ex¬
money.
what
way
could
the
U.
S.
the
process
of trade?
obvious way, which
devaluation of the dollar in
one
of
terms
foreign
money
values.
Cairo, India, and China
is
price of gold
U.
official
many
price.
S.
times
They
ignore the fact that their measur¬
ing
rod
is
a
fictitious
nothing
one.
translate
to
the
of
our goods and gold.
The latter
particularly important.
In or¬
der to get rid of gold
we shall
have to make it cheap in terms of
francs, kronas, etc.
This would
mean lowering of the dollar value
of gold in their terms. This process
has already started by our delib¬
erate setting of high
exchange
ratios with francs, for instance,
which permits the French to buy
is
more
together
with
in
or
divi¬
all
arrears.
Revitalized Rails Enter
dollars for fewer francs.
the
American
tourist
In
Phase, Survey Shows
a
new
railroad
and
importer will be at a disadvantage
rather than advantage as in the
past.
Already in Germany and
Russia, for instance, it costs more
;
booklet dealing with
the investment
merits of selected
Halsey, Stuart &
Inc., 201
South La Salle
Street, Chicago, 111., express the
opinion that "Today's railroads
are a
revitalized and, to a large
extent,
a
reorganized
industry
both from the standpoint of opera¬
bonds,
Co.,
tions and financial structure.
The
industry is one for which the pub¬
new respect and apprecia¬
lic has
tion growing out of its; courageous
accomplishments
and
wartime record of
achievement.
Instead of being a ;
pre-war
its
amazing
declining industry it appears to be '
entering a new phase of development
and
which, if not
dynamic
phases,
promises
less necessary
expansive
earlier
be at least
as
its
in
as
stabilized
more
to
and
certainly
no
to the growth and
well
being of the nation."
The
booklet, a copy of which may be
obtained
Co.,
from
upon
railroad
The result of this is that in the
future
New
central bank.
Incidentally it is almost
gone
1,, 1954,
dends accrued
so some way
facilitate
to
on
We
Street.""
•
'
factors.
We
got a
tremendous know that, for instance, a meal in
\
So we see what happens when quantity of it, all of which under Chungking at .the official rate of'
no circumstances can be of use as
exchange costs some fabulous sum
money becomes plentiful. -What
a monetary base's.
The hish price of dollars, so that obviously it
is the position of gold in that re¬
also reduced the flow of metal means
relatively
.
figure of $35 an ounce, not much
otherwise.
Mr.
Morgenthau
is
the
to
but
the world's largest We shall probably strive to make
principle that the price of gold amassed pile of it, and there ii it/;easy.for the others to get our
determines values and amount of nothing he can do with it, except dollars so that they can buy more
the textbook theory based
the
down
go
years
probably be followed in
the case of gold.
Specifically, as the White Pa¬
per implies, there will be a dis¬
tinction made between gold in ex¬
is
indicating the excessiveness of our price simply on
the basis of supply and demand
had the spirit to get
these 40
In fact it
money.
genthau at the arbitrarily inflated
around— ing shipped here in exchange for
sat
just
have
Yap
haven't
ing
There is
once
whole schoonerful of stone
direct
still silver mines have been mak¬
enhance
devaluate
the
dollar, since its
Against these facts there are
The distance keot purchasing power remained un¬ serious professors and publica¬
money
scarce,
and a disc only changed, but we raised the price tions who; propose a further in¬
of gold.
So everybody, particu¬ crease in the gold price. The re¬
three fingers in diameter would
buy a pig, until an Occidental op¬ larly Russia, increased gold out¬ sults would be -further aggrava¬
put to get more dollars'to buy tion of the problem rather than
portunist named O'Keefe arrived
a
have
which
has been passe
gold is good for
canoe.
with
way
bearing on investments. We should
not forget that monetary silver
teeth and for selling to Mr. Mor-
Palau Islands and bringing it back
by
some
our
considerations
banking
Net
impose
hoard will1 be of
some use.
Unfortunately our bar¬
gaining position is not good, be¬
cause most foreign countries have
also learned to get along without
gold so they can take it or leave
it.
They will take it only at a
price.
Consequently, while the longrange future of gold is not* excite
ing, there are certain practical
whereby
change of
currency."
some more from Britain or Rus¬
used happened in trade except that
sia, which means giving away
stone discs for money, quarrying gold mines were given a 75%
bonus. In other words, we did not public money for gold.
it hundreds of miles away in the
"The
that the U. S. will do
to
A
Stone
'
whether
or
prior to the last war
we
learned
to
operate with a Europe had to give up the idea of.
the gold reserve.
Their curren¬
negligible amountv of metal on
cies have gone into managed cur¬
hand. Subsequently another func¬
even
sure
evident
standard?"
Mr. Eccles: "Yes, completely."
difference to Germany for a long
about $250,000,000.
So
Mr.
of
best
dled will
period 1894-1913 showed
balance
testimony
goia
methods
these
the
be
good parallel. The same illogical
way our silver policy was han¬
attitude
of civilization.
efficient
from
can
its
By Bastking Group
$18,000,000 first
istence and that still to be mined. mortgage bonds; a $6,500,000 bank
We may have an international loan at 2%%, maturing serially
monetary price of gold of so much, April 1, 1945, through April 1,
fect, saying there is no relation and a different price for that 1950, subject to reduction depend¬
whatever of gold in this country newly mined.
In this country it, ing on the amount of prior pre¬
probably would be much lower ferred stock converted into com¬
to our currency?"
mon
because
we
do
not
need
more
stock; $80,000 of property
Mr. Eccles: "That is right."
Mr. Smith: "There is no rela¬ gold.
In some foreign countries purchase obligations; $9,000,000 of
series A preferred stock; and $8,it may be even higher.
Another
tion whatever?"
Mr. Eccles: "That is right."
possible means of .curtailing pro¬ 250,000 of $15 par value common
duction may be some kind of quo¬ stock, disregarding possible con¬
Mr. Smith: "You then take the
keeping, its increase following in
How
the prob¬
Board, before the
Banking Committee:
Mr. Eccles: "I do deny that the
amount of the gold reserve, or the
gold requirements have anything
to do with the price level, which
means
they have nothing to do
with the value of currency."
Mr. Smith: "Aren't you, in ef¬
quently the improvement in credit
and banking eliminated even that,
so that the preponderant part of
world trade is now done by book¬
direct
be run on managed cur¬
that bur gold meeds are
should
we
probably will not go en¬
tirely ofi the gold standard. We
House
learned
was
can
that
remains
not and
Federal Reserve
be substi¬
tuted by tokens and by
paper
promises to pay, which greatly re¬
duced the need for coin.
Subse¬
hard
do¬
is, is indicated in the quota¬
tion
hand there was
also the element of improvement
iii
the method of its use.
Very
that
our
banking and international
Marriner Eccles, Chairman of the
amount of gold on
early
or¬
are
smaller and decreasing.
How well recognized
of
factor
this
from
Apart
still
fast pace,
a
trade
when war
with the
tne Carolines and
far-fetched as it
on
now
rency ssO;
that,
So the parallel
gold is not as
might seem.
fact
points that:
have more gold than
4. We have learned that
rising
still
was
started.
stone money
an
need for monetary purposes.
mestic
existence, and this rate of out¬
in
been
that
"use value."
rate
Vi of the metal
central banks held
We
.
But
to
Oklahoma PftL Offeree!
we are
returning to the original
points in favor of gold, the
reviewed in
was
sense
two
addition
producing more of it
likely to be in¬
creased further, even on the pres¬
ent prices.
3. Tne price is higher than the
far from 10% of
accumulated through his¬
up
in
So
demonstrated
2. We
at
wnich may be not
the total
power,
a
der to drive home the
held
ozs.
in
methods.
All of this
and hard to get, now we ac¬
rare
them
both domestically and in
foreign trade can be run without
gold.
Century.
was
,
economy
350,000,000, and by 1938
countries held a total of 730,-
While
ing lip cash and gold balances in
tins country.
J
of
their
of
purchasing
clearly
1920 held
000,000
wonder certain neutrals are build¬
control
other adverse factors it has
luu,000,000
in tnenr central
52
and
ard
exceeaed
major world countries whicn
mum
simplifying barter, as a common
denominator of value, and as a
store of purchasing power.
These
functions were performed also by
a great number of other materials,
ozs., it
entire 19th
38,036,qUU
that
internal
both
allowed
even
1938 alone when the output
In
was
that
of gold.
the favorable side for gold
On
1921-1930
mine
we
exporting
oh
lend-lease * "a :* lhrge"
amount
without receiving payment.
No
business,
1901-1910
may
some
in the
1888
since
time
unfavorable trade balance
an
international trade, than un¬
der the semi-automatic gold stand¬
2,000,000
1851-1900
first
the
for
have
tighter
Ozs.
V
Period
interesting specu¬
domestic
a
entirely without gold
They had managed currency
which
(Continued from page 1298)
no
run
com.
reduce risks I cannot help believ¬
that
learned to
economy
Gold Stocks
ing
1321
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4268
159
<,
Halsey,
request,
situation
Stuart
surveys
&
the
various
"at
—•
pre-war,
wartime and •
current—also discusses their post¬
stages
war
outlook.
for
It concludes by
recommended
lining
selection
investment
railroad field.
;
,
out-1
standards'
the
in
.
•
to live than in the U. S. in terms
of
dollars.
Similarly
American
labor will proportionately get
so
le«s
that "cheap foreign labor" will
may
3.
become
high priced and, as a con¬
the tariff wall would be
automatically higher, further en¬
receive
less
for
their
new
metal.
refining methods
times mining and
were
new
so
recent
Foreign mines will fare dif¬
ferently, probably better, particu¬
costly that
difficult and
output-was relatively small.
Now, however, due to exploration
and
improvement in mining meth¬
ods, the volume has been tremen¬
sequence,
know of the "old gold" buyers of
in terms of gold.
Also the fact that disarrangement
of world credit created
distrust
the
Until
spect?
and
Looking in that light at some
correct, what is the prac¬ outstanding gold stocks it would
tical effect of all this on the in¬ 'appear that they are more than;
'
vestor?
amply
priced.
The
foregoing
to industrial
the
trend
figures
on
port that.'
world production sup¬
* '
'
'
'
'
reversed.
was
ten
In fact,
We
all
And even
India, the traditional absorber of
past
gol<4. in
some
porter
on
U.
S.
years.
recent ye~r*s
In
balance.
absorbed
metal than
Some simple
dously stepped up.
consumption.
was
60%
the
Another point mentioned as an
nomic units such
the
gold picture is the fact that
as
large eco¬
Germany and
of accumula¬
$700,000,000 of
the U. S. .after years
tion
time
..
If this line of reasoning is gen¬
indication of the strengthening of
gold
dangering gold trade.
a,4esire for tangible wealth
erally
play/itS part.
1935-44
produced through¬
same
currency
w** ex¬
more
out the world.
At
same
.arid
trals.
has lost
in
some
<he pa«t yp°r to
The
reason
tbe
neu¬
for that is that
larly in countries with small out¬
put.
,
:
1. It is obvious that all talk of probabilities, while not certain¬
higher prices for gold is a bit far¬ ties, are reasonable risks that must
be given consideration in any aofetched and optimistic.
2. Domestic mines are likely to praisal of gold secures making
them unattractive holdings.
.uvuon quotas ana
be
iju.
THE COMMERCIAL & FINANCIAL CHRONICLE
1322
of
sion
Orders executed
are
NASD
bought for vari¬
is
Yield
reasons.
ous
information.
more
Securities
on
one,
.
San Francisco
of
Stock
Exchange
that would make the
specific issue sell higher in
Open from
,
the
wires
Schwabacher & Co.
Members New York Stock Exchange
Private
CO. 7-4150
to
wires
San Francisco
Sacramento
Santa Barbara
Fresno
Oakland
Monterey
Tomorrow's Markets
all
still
is
future
Yet
Eastern War Time
14 Wall St, N. Y. 5
the
another.
be
can
reasons
disregarded in favor of the
objective. It is assumed that
long-pull buying is under¬
taken for one thing-—profits.
I know a great many people
will insist that profits are not
the motive, that yield is the
primary objective.
Yet a
handsome yield must take
second place if the price of
the
security declines.
On
one
thing; however, every¬
body can agree, safety. But
to seek safety in the stock
marekt is to seek the will o'
Walter Whyte
the
For if you finally
safety you've lost profit
potentials and probably yield
wisp.
attain
Says
well.
as
Near-term
rally possibilities
in market—Longpull outlook, however, is be¬
coming increasingly drab.
still present
*
*
re.
all
long-pull stuff should be
re-analyzed. If
the same factors which guided
Nothing has happened since the buying in the first; place
the previous column was writ¬ still obtain, then the securi¬
ten to change the belief that ties can be bought back.
Of
a broad
top is in the making course, the tax situation, not
mention brokerage fees,
so far as long-pull potentiali¬ to
ties
are
sudden
does
At
concerned.
the will have
possibility of
* intermediate
rally questions
not
detract
to
be
a consideration.
time the
•
from
taken
t h
But
.
must solve
generalized
apply personally.
No
longer-term
picture. M The opinion can
question is, should one dis¬
The reason for such quar¬
pose of long-term holdings in
"anticipation of the anticipated terly liquidation is found in
storms or buy a couple of the fact that few of us can
stocks in order to be aboard
determination
serious
the
deficiencies
of the "Herald's" financial edi¬
tor by a process
Committee.
vidual
it
wherever
issues
was
believed such adjustments were
needed.
than
In the summer of
Business
1941, how¬
ever, a much more rigid method
for determining newspaper quo¬
conduct
a
committees, sitting in
quasi-judicial capacity, are in
tations
the difficult and vulnerable po¬
sition of businessmen trying a
competitor. ; Under suph cir¬
cumstances, they are bound to
observe the highest standards
of fair procedure.
In so doing,
they must not in any way dis¬
At that
introduced.
was
time
NASD
which
their
rules
or
which
simple justice demands,
including the right to coun¬
sel.
They should take every
reasonable
step
that
insure
necessary
their
to
deliberations
affected
not
are
by
the
with
Association,
the
per¬
Now
how
can
the
theory be applied to shorterrun
indications?
^
First,
a
Hi
H«
closer study of daily
market fluctuations must be
made.
I
try to do this by giv¬
ing you the results rather
than the method used.
If, for
example, I think a stock is
going higher, I advise its pur¬
chase but at the
same
time I
limit its
are
times when I have
been overcautious.
because
If so, it is
Yet I could
buying
whetted
see
that
change what looked like
But
each
no
an up
a
market.
public, members of it
working independently,
He told
s^id:
-
House
a
;
.
Military Affairs
subcomittee
studying draft defer¬
registrants now classi¬
ments that
fied 4-F could be taken into mili¬
issues
cedures is
"The
No.
.
case.
20
hearing
respects;
it
handled;
on
it
was
injudiciously
violated
fundamental rights."
Gleason's
and further
"The
Accordingly,
spread between bid and
asked appearing in
the "Herald"
quotations is completely arbi¬
trary.
Up to the Summer of
each security which
the "Herald" was fur¬
nished with a bid by a local
house selected by the Quotation
1941,
for
of
these
pro¬
followed, wherein the
dropped for publica¬
tion, the original dealer's
being published. The drops
spreads, are arbitrary,, in
case,
and
are
changed
quently,
these
in
variant
a
bid is not
Complaint
deficient
was
1
have
never
tions
nor
the
bid
and
any
fre¬
They would be part of the army
and
but would be put at
military hospitals, har¬
navy,
work
in
vesting
seasonal
needed
and
crops
in
where
other
non-
combatant positions such as those)
occupied
women's
by
military-
auxiliaries.
quotations
reflected
transac¬
have
they reflected
even bona fide expressions of
trading interest among securi¬
ties houses.
Circulars On Boston & Me.
And United Gas Available
~
it quoted,
Securities
of
Boston
the
&
Maine Railroad offer good specu¬
Decision of the SEC
lative possibilities according to a
passing upon Gleason's peti¬ memorandum issued by Price, McCommittee of the Boston Se¬ tion for review, the SEC affirmed Neal & Co., 165 Broadway, New.
curities
Traders' 'Association the fine of $250 and the censure, York City. Copies of this interest¬
under the supervision of the upon the ground that "such penal¬ ing memorandum and a circular
NASD.
An asked price would ties would not have been exces¬ on United Gas Corporation may
cific
levels.
In
were
Foundry, 36,
stop 35; American Locomo¬
tive, 16, stop 15; Bendix, 35,
stop 34; J. I. Case, 36, stop 34;
Electric Auto-Lite, 38, stop
37; National Lead, 20, stop
19; United Aircraft, 28, stop
27; U. S. Steel, 50, stop 49;
and f Youngs town
Sheet ■ &
Tube, 37, stop 35. Of this list,
the last, YB, came in at 36.
The rest are still some points
away.
There
is
another
some¬
thing—Servel.
with
a
be
had
United
that holders of the
of this
Buy it at 18
stop at 16 V2.
.
criticism
of
NASD
supervision of newspaper quo¬
tations;
(c)
ness.
The failure of the
Conduct
Busi¬
Committtee
to
consider Gleason's defenses that
he .did business on the .same
basis
of
all
the
other
(d) The absence of
the
record
on
Conduct Committees presents in¬
teresting
wonder
any more
come
into the
More next
Thursday."5
—Walter
[The
article
time
views
do
not
coincide
Chronicle.
expressed
any
con¬
duct set by the SEC for Business
Conduct Committees because of
in
this
necessarily at any
those of the
with
'They are presented as
those of the author only.]
may
and if
which would make immune from
personal
those who attempt
public service.
loss
to render
a
A/BINDER
For Your
Copies of
"THE CHRONICLE"
A
practical stiff back string
petitors, the facts before the Com¬
binder especially /
mission warranted
versal.
to
Personal
Liability
We
has
any steps to protect these
against liability to which
our judgment, particularly in
a
law.
NASD
data
prevailing
view of the high standards of
complete
re¬
hold
current
"The
designed
issues' of
Chronicle"
'
of Business
Conduct Committee Members
40
/When interviewed Mr. Gleason
Strings
in
Each
Binder
Accommodate 40 Sections
said that between the time of his
.
'
of
"The
Chronicle" i
expulsion and his reinstatement,
the NASD notified all of its mem¬
bers of his
ouster.
This, he says,
substantial damage,
is, therefore, deliberating
the wisdom of bringing an action
against the individual members
caused
Whyte
of
the
be personally subjected,
they have, just what safe¬
guards the NASD has set up. Cer¬
tainly the least that can be done
is to provide a bond or bonds
they
their vulnerable position as com¬
If
questions
whether
City
markets in the securities at the
time of sale.
.In
;
houses
of his type and size in the
of Boston; and
in
stock
common
corporation should oppose
dividual members of the Business
men
The
on
the recapitalization plan.
taken
(b)
In the circular
Gas
Corporation, the firm
advances its reasons for feeling
for
him—might prejudice the
Conduct
Committee
against him;
1
*
request from Price,
upon
M'cNeal & Co.
Business
These
American Car &
public with a
appetite
could
down market to
which also
sideration of the relevant facts
.
selves.
work
receives
and
cases
of the above
list by next
tape can act upon almost im¬ week I shall
give you levels
mediately.
*
at which to take profits.
But
no
matter how strong they
Last week, for example, become, I advise
against chas¬
the signals for a downturn
ing them.
*
*
Ht
*
were
beginning to show them¬
the
for
of the
In
a
weekly column has
to
anticipate many things
that a
daily follower of the
38
that bid by
decisions
purchase to a specific
level or range and
attempt to
protect this buying by a stop. stock which looks like
There
men
of this type, their
ought to be supported
not merely by peremptory con¬
clusions,
but
by
articulated
findings and a reasoned con¬
prejudices
of any
of
the participants in the proceed¬
potential
stuff.
over
and
military hospitals, the harvest-'
ing of seasonal crops and other
non-combatant work, it was re¬
ported in United Press advices
from Washington on March 27,
a
bid; it lowers work.
the indicated amount
All the War and Navy depart¬
(usually Vs or %•) and obtains ments would have to do, he said,'
a published
bid price; it then is to announce that they are going;
adds the indicated spread to the to take in so
many 4-F's
and.
published bid price to obtain a over-age men
for
non-general
published asked price. In some military service.;
'
sonal
view impartially anything we
then be determined in the office sive even had they been based
The
upon the unfair pricing
rally."
Both have an interest in.
charge
alone."
The
methods have their points.
Commission, how¬
holder of, say Steel, can see
can control a trend.
So I con¬ ever, reversed the expulsion ac¬
Jjc
H*
jje
nothing but good for it. But cluded that from the
highs of tion of the NASD.
To get out of all long-term let him sell the stock and his
In view of other parts of the
last week a reaction would
stuff without regard to mar¬ opinion will change.
If it occur from which a
decision, it is difficult to reconcile
rally thC
ket action, based on present doesn't, then the stock is still
sustaining of the fine and the
would follow. Following this
censure.
These are:
a
buy.
indications, is not wise. To
reasoning, I recommended a
(a) The warning that the ap¬
give a blanket opinion one
list of stocks I thought would
pearance
of an
attorney for
would have to be in posses¬
So much for the long-pull
Gleason—one in fact appeared
make money if bought at spe-.
the
4-Fs
in
tary
service without additional
security, the name of the dealer
who would supply a daily bid legislation and Without lowering
combat physical requirements, al¬
to the newspaper, the amount
though additional legislation
by which that bid was to be
"would be helpful."
"dropped" to arrive at a bid to
be published, and the amount
Something must be done imme¬
of "spread" which was to be diately to find replacements to
added to the "dropped" bid to industry and to stop labor turn-;
obtain an asked price to be pub¬ over, he said, and the Army and
lished.
Each afternoon the pa¬ Navy already have discussed tak¬
ing such men for non-combatant
per calls the dealer on its list
any
afford
By Military *
Securities
Boston
acting in a supervisory
capacity, furnished the "Herald"
with a list showing, for each
respond¬
right
a
the
Traders'
.
courage or abridge
ent's
exercise
of
Discussed
of adding some
arbitrary amount; to the bid,
Col. Francis V. Keasling of the
varying with the price level of Selective Service made known on
the
issue, and
then making March 27 that the Army and Navy
various adjustments for indi¬ have discussed
plans for inducting
'inexpertness' found by the
National
Duty For
4-Fs And Men Over 38
(Continued from page 1300)
Conduct Committee's procedure
in this case suffered from far
more
Noncombaf
Against Gkasoii
•shows, not considered.
Never¬
theless,
Gleason
was
found
guilty of the charge of unfair
pricing.
"In our view, the Business
into
o s e
everyone
the for himself.
'
Committee's
ing.
In my own experience I've
found that four times a year
sold and then
By WALTER WHYTE
same
the
event within the com¬
some
pany
10 A.M. to 5:30 P.M.
Direct private
Knowledge
safety is another.
Thursday, March 30, 1944
him
and he
of the Business Conduct Commit¬
tee which tried
him, to
recoup
his
losses.
The extent of the
Price $2.50 Plus Postage
Address
The CHRONICLE
25 SPRUCE STREET
NEW YORK
liability of in-
(7), N, Y.
Volume 159
,
THE COMMERCIAL & FINANCIAL
Number 4268
1323
CHRONICLE
~
Municipal News & Notes
of
Offering at competitive bidding
a scheduled issue of $42,000,000
District,
•Consumers Public Power
Neb., refunding bonds will not be
made until' after the close of the
•special session of the Legislature,
which was convened by Governor
D wight Griswold on
In
;
resolution adopted by the
a
district's Board of Directors-on
;
March 21, announcing the above
of the district
directed to proceed "with
officers
action,
were
preparations for
the
Board
at
its
submitting to
first
meeting
after
adjournment of the special
session further detailed plans
for the refunding."
The resolution
was
accompanied
statement of the Board of
Directors acknowledging the de¬
"by
a
the
court held, in
;Wire Bids
on
VIRGINIA—WEST VIRGINIA
|
I
CAROLINA
Be
MUNICIPAL BONDS
that the Texas; law
counties
in
permits the
bonds
the
State,
prior redemption
affected .thereby,
opinion will be carried on
regard¬
have
s
tea
and
• special
districts—all in pro¬
portion to population.
The
Chemical
Bank
&
The
and people about whom he is talking."
we mention this incident is just to show that there is
reason
sirability of the refunding as soon adherqd to the opinion that the Co., New York, in their "Brief hardly a field of human endeavor existing today, in which someone
Cochran County decision will be
cannot come along and do a better, and a more constructive job than
as
possible at a consequent sav¬
Analysis of Credit Factors of the
voided.
In the meantime, it may
is beihg accomplished by the general run of his competitors.
ing to the district's consumers of
City of Philadelphia," just issued,
be noted that, apparently as a re¬
It is perfectly obvious that success in security retailing is based
states that the city reduced its net
"probably $5,000,000." The state¬
sult of the Texas Supreme Court
debt, including overlapping, by upon the confidence which investors place in the firm with whom
ment also said that it would be a
decision in the Bexar County case
Confidence can be created by many methods—
serious mistake to magnify the
25.6%, or over $119,000,000, in the they do business.
disagreement among the Board as (see Chronicle of March 2, page last 10 years, or from $467,273,151 good results, of course, comes first in importance as a business builder.
to the method of effecting the fi¬ 906), the issuance of bond call on Dec. 31,1933, to $347,476,052 at Prestige, standing, a reputation for being SOUND in judgment;
notices by counties in the State
the close of 1943.
Gross funded conservative principles upon which a business is conducted; real,
nancing, whether through private
has been accelerated.
sale or competitive bidding.
debt, which reached its peak in tangible interest in client's welfare—these are things that build a
business.
1933, is now at ihe lowest point
One of the purposes of the
Now it is axiomatic that a firm is judged by the company it
Governmental Units Total
since 1927, according to the re¬
special legislative session will
keeps, just as is the case with individuals.
So why not use such an
port.
155,148, Survey Shows
be to ratify the action of the
approach in your direct mail advertising? For instance, every week
Debt
currently
outstanding
district's
executive board on
A total of 155,148 governmental
in this publication, articles by some of the leading experts in the
consists
primarily
of
term
March
16 last recommending
units levy taxes and render pub¬
fields of general economics, finance, and individual, industry analy¬
bonds, a large portion of which
that the refunding issue be sold
lic services in the United States.
sis, regularly make their appearance. This is, we admit, a plug for
are
callable over the next 15
at competitive sale.
The pro¬
Included are 3,050 counties in 47
the "Chronicle," but it deserves it—in fact, the articles of this nature
years.
Sinking funds are ade¬
posed issue will consist of genStates—county
areas
in Rhode
which appear herein, to our best knowledge, are not duplicated in
quately maintained, it is„said,
eral and refunding obligations
Island
are
not
organized for
any other publication.
and the city has never defaulted
and is intended to consolidate
governing purposes—and 18,884
Take last week's issue, for example: there were excellent articles
on
payment of bond prinicipal
the several series of issues prestownships.
There are 16,189 ac¬
on
(1) The Railroad Situation, (2) Money and Inflation, (3) Inter¬
or interest.
,'1 ently outstanding. Several syn¬
tively
organized
municipalities,
national Bimetallism, (4) Congress Must Encourage Venture Capital
dicates have already indicated
Although
assessed
valuations
including cities, towns, boroughs
Out of Hiding, (5) Current Problems and Their Effect Upon Munici¬
interest in the projected issue.
declined from the 1930 peak of
and villages.
pal Finance, (6) Post-war Prospects and Problems, (7) Foreign Trade
$4,787,602,031 to current low of
To clear the way for disposal of
Largest category is school dis¬
and Currency Stabilization Problems, and also the regular features
$3,070,557,663 (1943), the city, by
tricts constituting 70% of the
-the issue via the auction method,
and articles on Real Estate, Public Utility, Railroad and Investment
adopting in 1940 the highly pro¬
total, according to information
the Board Directors
has asked
Trust Securities.
ductive income tax levy, obtained
to the International City Man¬
Guy C. Myers of New York. City,
v
:
Why not prepare a neat folder, with your firm name, your
substantial revenue to supplement
who was engaged as refunding
agers
Association. ^ Excluding
address,, etc., at the top, and a line or two stating that it is your
real and personal property taxes,
these, municipalities '-comprise
agent, if he is willing to cancel
policy to keep your clients posted regarding the developments in the
which: declined because of the
about
his contract, calling for a commis¬
33%,
townships
41%,
field of general economics and finance, by sending them reprints of
ratables loss.
For#the past eight
sion of Vi of 1 %, in consideration
special districts 18% knd coun¬
certain information which comes to your attention and which they
years the city has maintained a
ties less than 7% of the totaL
of being reimbursed for out-ofmay not have otherwise noted.
This is the general idea.
Word it
real estate- taxv rate of no more
to suit your own purposes—make it dignified—yet personal.
pocket expenses. Governor GrisPut it
Units exist primarily to conduct than $17 per $1,000, and home
wold is reported to be opposed to
in such form that it can be used as a permanent cover or frontispiece.
local government in the general ownership in the city is said, to
the contract.
Then select one of these articles and have a supply photo-offset
municipal sense; to supply some be well above the median for
specific local public service or to cities with populations over 500,- (the "Chronicle" will be pleased to allow this privilege, just given
them credit).
Tom Green County, Texas,
There is nothing more effective than a reprint from
carry out v any of the numerous 000.
a standard publication and the cost can be cut down to a cent or two
Decision Charges Bondholder possible combinations of general
A tabulation contained in the
apiece for the offset.
By sending out selected material that has real
With Knowledge Of The Law or specific functions.
analysis shows that real prop¬
"meat" and merit, you can cover your regular clients and prospects
Variations in number of units
erty tax collections have in¬
with the type of mailing that is bound to create a favorable impres¬
Right of Tom Green County, in each
region of the country may
creased steadily since 1933, pay¬
Texas, to call for redemption cer¬ be due to three things or a com¬
sion, build your prestige and page the way for your salesmen toward
ments of the current city levy
tain courthouse serial bonds of
better accounts.
Closer ties between your firm and your customers
bination of the three, the asso¬
in that year having amounted
can be established and, in addition, you are helping them to become
1927, despite the fact that the ciation said.
There may be less
to only 72.4%, as against 96%
.contract pursuant to which they
better investors—which is fundamental to the success of any welloverlapping of units, as in New
in 1943.
were issued specifically set forth
managed retail security business.
England, where local government
a
Philadelphia is the third larg¬
non-optional clause, was up¬ is characterized by the town and
held by Judge Sutton of the 51st
est city in the country and is
village in contrast with Illinois
District. Court at San Angelo, in
described
as
the
"hub of the
Fifth War Loan Drive
having the county, township, mu¬
a
nation's fourth most productive
decision rendered
last week.
nicipality, the school district and
Goal Is $16 Billion
industrial area, and a.commercial
The county had called the bonds
one
or more special districts all
A goal of $16,000,000,000
has
and industrial unit of outstanding
last October in pursuance of the
covering the same area.
The
been
fixed
for
the
Fifth War
decision of the Texas Supreme
(Special to The Financial Chronicle)'
vV
importance in the nation's econ¬
units may cover a larger area or
Court in the now famed Cochran
omy." Since funding accumulated / CHICAGO, ILL.—William Brad- Loan, it was made known by
the density of population may be
Secretary of the Treasury Mordeficit, in 1939, the city has ex¬ shaw
•County case... This decision and
Egan has become associated
greater.
the
more
recent ruling of the
panded its revenue system, bal¬ with Brailsford & Co., 208 So. La genthau on March 23, "because,"
New England States, relying
he said, "we need it for the war
Texas
tribunal
in
the
Bexar
anced its budgets and accumu¬ Salle
Street, members of the Chi¬ and
because we've been assured
heavily on the town organiza¬
lated sizable cash surpluses, hav¬
County litigation were cited by
cago Stock Exchange.
Mr. Egan that we can
tion to provide many govern¬
get it."
According to
Judge Sutton in ruling against
ing closed 1943 with net cash was formerly with Sills, Troxell
mental services, have by far the
the Associated Press, the Secre¬
Annie Norton, who had refused
surplus in general fund of $4,- & Minton, Inc., and Central Re¬
fewest number of local units—
tary at a news conference that day
-to surrender her holdings of Tom
758,716.
public Co. Prior thereto he was said that he wanted to correct an
a total of 2,314, or 27.4 per 100,Green bonds and contested the
an
officer of Bond & Goodwin,
000
population.
Greatest in¬
county's action in the courts.
Triborough Bridge Authority Inc., of Illinois, Interstate Invest¬ impression that' the goal would be
crease
in
the
number
of
$14,000,000,000, the same as the
In his decision, Judge Sutton
ment Corp, and R. E. Wilsey & Co.
Outlook Analyzed
Fourth War Loan, which brought
governmental units is found in
expressed the opinion that the
in $16,730,000,060.
the West North Central States,
Goldman, Sachs & Co., New
It was added
county "by its conduct, if not ex¬
in the press advices:
where there are not only the
York City, have just completed a
increase $100,000 it is estimated
pressly, led the purchasers of such
that a rise of 34% in March
greatest number of units, 57,049,
study on the war emergency and
"Saying
that
he
had
been
(1927) bonds to believe that it was
but
the
greatest number per
its relation to Triborough Bridge
through July revenues would be
smoked out by the published re¬
the intention of the Commission100,000 population.
Of these,
Authority
bonds,
which
states
required to avoid borrowing.
'ers' Court to waive its option to
ports, Mr. Morgenthau added that
school districts account for 314.3
that, "It appears conservative to
call and redeem such bonds, this
For the period through Feb. 1, a full announcement as to the date
per
100,000 population, organ¬
anticipate that increases ranging 1945, and assuming a 1943 level of and type of securities would bo
fact being self-evident from the
ized towns and townships, 61.7
between 25% and 34% will mate¬
fact that the sale of the courthouse
operating costs, total expenses made next week. The drive gen¬
and municipalities 30.8, of which
rialize in view of the 50% and 60% are estimated at
bonds
enriched
the
courthouse
$4,211,000.
To erally is expected to open early
rise
of
enly one-tenth are over 2,500
January
and February avoid
fund in the sum of $12,178, as the
borrowing, a 25% increase in June."
population.
receipts
respectively."
Gross in monthly/ revenues for the rest
premium received on the sale of
monthly toll revenues from all of, the period over those of 1943
•the bonds, over and
above the
The Mountain States are second
Growth Possibilities
principal of the bonds so issued in the number of all units in rela¬ facilities amounted to $250,050 in would be required, according to
January and $222,273 in February the study.
and sold."
Consolidated Gas Utilities Cor¬
If operating expenses
tion
to
population,
190.9
per
of this year..
rise
$100,000,
the improvement poration offers attractive possibil¬
100,000, and school districts, 145.8
The court also conceded that
ities as a growth stock according
required is estimated at 28%.
It is estimated that if operat¬
per
100,000, but rank first in
the protesting bondholder would
According to the study, large to a detailed circular on the sit¬
the number of counties and spe¬
ing costs are maintained at the
be "greatly damaged" by being
surpluses may
be expected to uation issued by Hicks & Price,
cial districts.
The Middle Atlantic
1943 level, total expenses of the
? obliged to surrender the bonds,
accrue in the
latter years of the 231 South La Salle St., Chicago,
Authority through Aug. 1, 1944,
States, which together rank first
in
accordance
with
the call
in population rank oniy sixth in
will be $2,067,000, and that a
life of the bonds, because cessa¬ 111., members of the New York
notice,
at
par,
although she
and Chicago Stock Exchanges, and
the total of all units and in the
29% increase in revenues from
: purchased
them at a substantion of war should restore rev¬
other exchanges.
Copies of this
number of school districts, last in
March 1 to August 1 would pre¬
; tial
premium.
Despite
this,
enues
to former levels after an
interesting circular may be had
number' of counties, and next to
clude the necessity of any bor¬
i however. Judge Sutton held that
from the firm upon request.
last in number of municipalities
adjustment period.
rowing,
If operation expenses
the bondholder is charged with
.
;
,
,
.
.
"
.
.
crowd—add a
a
"look at the opportunity these fellows are missing—the field
some radio announcer to become outstanding, as
of the few announcers who correctly pronounces the names of
the places
Trust
different—lift yourself up out of the
wide open for
one
Now Lowest Since 1927
little
touch—dig
he said,
is
appeal, Philadelphia Gross Debt
blow to
d f a s t !y
it obviously was a severe
RH 83 & 84
Telephone 3-9137
of
not they con¬
tained a call provision at the time
of
issuance.
While this latest
who
RICHMOND, VIRGINIA
Bell System Teletype:
definitely
less of whether or
those
CRAIGIE&CO.
a
bit deeper and find a better way—that's the
way to make your business noticed.
Once you begin to make an
impression on the right market the effect becomes cumulative.
It's
the start that is difficult, afterward the going is easier.
The other day a friend of ours was sitting by our radio and we
were listening to the war news.
The announcer was on a national
net-work and, despite this fact, he was mispronouncing the names
of practically every city in the war zone which he mentioned.
Our
friends, who happened to have traveled extensively in Europe, and
who knew the correct pronounciation of the cities in question, turned
to us and remarked that it was a joke the way some American radio
announcers murdered the
pronounciation of foreign names.
Then
novel
effect,
that gave birth
to the Cochran County decision
and the subsequent extensive list
of bond call notices by various
Inexpensive And Effective Method Of Sending
Out Mailings That Build Prestige
An
NORTH and SOUTH
the statutes.
Thus
The Securities Salesman's Comer
'
„
and that
the county cannot be estopped
by the acts or conduct of the
Commissioners' Court, if their
action is beyond the authority
conferred upon that court by
knowledge of the law
March 27.
r
1
,
Brailsford Go. Adds
W. B< Egan To Staff
,
.<
,
.
„
,
/'
The
'1
-
-
1
and very meager capital to start with. But this
small businesses start and grow into big
businesses.
Unhappily they do not all succeed so well.
But that can be blamed on many factors.
One may be the
idea itself.
Another may be lack of knowledge.
Another
may be work and effort, and it may be lack of capital.
A
getic
men,
is the way many
more
successful business with the
same
Idea and
a
capital, lives,
provides work for the people and makes progress.
Markets Under NASD's 5% Rule
(Continued from page 1299)
Thursday; - March 30, 1944
how the small business in the small town
gets
Small Business And The Capital
,
'
THE COMMERCIAL & FINANCIAL CHRONICLE
1324
better
'
V'
Man's Bookshelf
Principle of the NASD's 5% Gross Mark-Up Rule
In addition, to the fact that the
tion rule will
5% gross mark-up limita¬
put the small local dealer serving local small
business
:
% The Business
of
counter
out
business
and
and their chain systems, the
the
concentrate
capital markets in the hands of
over-the-
few large
a
dealers
Food for Postwar Europe: IIow
Much and What?—M. K. Bennett
—Food
Research Institute, Stan¬
University, California—paper
ford
—50c.
At the
principle is unsound.
} Japan, Its Resources and Indus¬
Clayton
D.
Carus
and
L. McNichols—Harper &
gross charge of much less than 5% and still do.
The rea-, Brothers, 49 East 33rd Street, New
sons
are
that volume and
competition have driven this York City—cloth—$3.50 (publica¬
charge down, and the business has been ruled by compe¬ tion date: April 19, 1944). • > /
tition for the most
part in the larger centers. The more of i Miracles Ahead !
Norman V.
this competition we have the better.
All buyers, sooner or Carlisle and Frank B. Latham—
present time and before this rule stuck up its head the large
dealers in the large centers were able to do business on a
organization may win the prize of success. But capital is
necessary and small businesses are very speculative for the
most part, and a great many will go under no matter how
later, are going to seek the best service at the lowest price.
well provided with capital.
But small business remains the backbone of business Government Bureaus and volumes of impossible rules that
cost the taxpayer money, obstruct the service, take the time
and employment.
It is now claimed that 45% of all people
of the dealers, and run
up their office costs until they have
working for wages are employed by small units. Just how
tries
—
Charles
—
The Macmillan
Company, 60 Fifth
Avenue, New York City—cloth—
$2.75 (publication date: April 11,
1944).
<
to raise the
Mr.
Tompkins
charges to customers to cover overhead are not
Explores
the
big and how important small business is must be somewhat
Atom—G. Gamow—The Macmil¬
in the public interest.
indefinite. :l We know it is big and we know it is important.
lan Company, New York City—
But as sure as this rule with all of its
But how big and how important depends on what is included
complications is
—cloth—$2^0.
made enforceable, the
in small business.
tendency will be for 5% to be the
Passenger
This will save the dealer time and money and
Transport
in
the?
One time back in the dark days of 1935 a survey was charge.
United States 1920-1950—Lewis C.
reduce his office costs.. It will be the natural
made of small business in a middle western town of about
charge
This survey showed that out of more than
6,000 incorporated businesses only about a dozen were
represented on the major securities markets. This repre¬
sentation consisted of branches of such companies as the
telephone company, the; power and light company; the gas¬
oline companies, and the branches of a few chain stores and
installment finance companies and small loan companies.
The local offices of these companies whose parent company
securities were listed on the national securities exchanges
did not employ many people, not any more than the aver¬
age small one office business, and in some instances fewer
employees than one office businesses of companies in the
same
occupations.
The great majority of the local cor¬
porations employed local people and these companies fur¬
bished the jo Ids for the community. The chain and foreign
toff ice representative companies were there for what they
could get and their employees in many instances did not
'stay long or become a part of the local community. These
; small corporations were dependent on local capital.
The
;
large companies or the branches of national companies
there obtained their needed capital from national sales of
i securities.
There was at that time a great need for local
capital and plenty of local capital but no satisfactory mar¬
ket.
Small business in that town just found it difficult to
| raise capital at any price.
Yet money was deposited in the
local banks without interest and to this day Federal; law
'forbids banks to pay interest on demand deposits... To
A stand
by and observe this process, and watch the local need
for capital, is not inclined to excite much1 enthusiasm for the
^holding down of the gross spread on over-the-counter secur¬
ities to 5%.
Capital at any price is preferable to what goes
on
today in this sort of thing in every small town in this
country.
A capable dealer in over-the-counter securities
who could actually serve the local capital
^markets in these
towns of 100,000 people and less would do the
community
50,000 people.
;
because
a
it
is
Sorrell
the
legal rule. In every business where
charge has been instituted it has tended to
maximum
become the minimum.
It will in this business when the
and Harry A. WheelerRailway Business Association, 38
South
Things Coming After
unsound and the dealer business should
fight it
as a
patriotic
duty.
The
This matter is
so
important to the small business in the
small towns of this
country that employ more than half of
the people of this
country that a Congressional committee
should investigate these problems in the small towns and
War—The
Business Bourse,
Street, New York
City—in loose-leaf ring binder—
80
West
$7.50.
Ten Years of Controlled Trade
South - Eastern
Europe — N.
in
Momtchiloff
formation that would make clear that the few
the bureaucrats
Financing
The
Macmillan
this matter held in Portland,
Company, New York—paper. v
Me.; Syracuse, N. Y.; Atlanta, Ga.; Rockford, 111.; Indianap¬
olis, Ind.; Louisville, Ky,, and like towns would disclose in¬
Y-VT Loans
and
Conversion
big dealers and
promoting this slaughter of the small town
security dealer and the small business in the small towns do
not know how half of the
people in this country live.
Avenue,
legal authority for the 5% rule should be in¬
vestigated.
*
1
.
2.
,
^
New
York
17,
Y.—
N.
Business
and
Post-War
Readjustment—Leverett S. Lyon,
James
M.
Barker
and
Guenther
Baumgart—University of Chicago
If the
4.
-
Industrial
In
Your
The
National
—
pape*\
conclusion:
1.
—
Conference Board, Inc., 247 Park
No dealer should be
large city dealers want a rule of approxi¬ Press, 5750 Ellis Ave., Chicago,
mately the charges of the present most successful dealers of 111.—paper—$1.00.
1 or 1 ¥2%, they should have it if
they can agree. But they
Wartime Labor Relations—John
should not monopolize the business or
try to force their H. Mariano—National Public and
rules upon the small dealers in small towns.
Labor Relations Service Bureau,
3.
The original purpose of the
Maloney Act should be Inc., 110 E. 42nd St., New York
17, N. Y.—cloth—$2.75.
investigated in the light of what has transpired and develpped.
*
association
or
OoEombia Bend Exch,
abide
f
Offer Extended
Holders
of
Republic of Colom¬
Sinking Fund
July 1, 1927,
and
due Jan.
1, 1961, and 6%
External Sinking Fund Gold Bonds
bia
6%
Gold
of
External
Bonds
1928
and
from
Oct.
of
April
1,
1,
1961,
1928,
being
are
extension
an
of
time
April
1, 1944, to Dec. 31,
within which to exchange
1944,
the
dated
dated
due
notified
bonds
and
appurtenant
designated
in
cou¬
the
offer,
dated June 5, 1941, for Republic
of Colombia/ 3% External Sink¬
ing Fund Dollar Bonds due Oct. 1,
pons
The period for exchange of
Certificates for
3%
1970.
Convertible
External
Bonds
light of what has developed and in terms of modern
impossible for the small corporations thus affected to again
conditions.
capital through the sale of securities
capital
incidentally, which need not come due and have to be
paid when local business needs it most since dividends can War Bond Redemptions In compared with December's $206,-
ples
be deferred.
ies
Sinking
due
Fund
Dollar
Oct.
1, 1970, in multi¬
has been similarly
of $500,
,v
extended.
;
—
If the
capital is
900,000, the previous record, and
last month's $184,800,000 figure.
preferred stock, M»rch Nearly 47% of Sales
there is no costly
With but one week remaining
bankruptcy with the local employees
"This
in the month, March war-bond re¬
thrown out of business as is the case when
running
capital is obtained
demptions reached a new high of of sales.
from chain loan companies and installment sellers.
Just
more than
common
or
whv the local securities dealers in these small
places should
be held down to 5% and these national
local business be
times
40th
in small businesses. A
hearing on
in the
to
Street, Chicago,
large city dealers become the monopoly of this business as
Selection of Supervisors—Har¬
they will under this rule, and costly red tape clutters up old W. Dornsife—Industrial Rela¬
their offices with paper records to be furnished to take their tions
Section, California Institute
time from customers and from seeking information which of Technology, Pasadena 4, Cali¬
'
they should seek to inform themselves and their customers. fornia—paper—$1.00,
The principle of the NASD's 5 %
gross mark-up rule is
600 New
required to be a member of an
by the rules of an association which is
a service at two or three times 5 % and still be instrumental
wholly inconsistent with his needs. As things stand now a
dealer is compelled to join the NASD since the Association
in furnishing the cheapest
supply of capital in the com¬
has a rule, which is permitted by the
Maloney Act, that forr
munity:
For a dealer to sell securities in these small towris;
bids a member from giving discounts (wholesale
at a gross mark-up of 5% and live will depend on his
prices) to
volurrfej
Since the largest firms in the business col¬
and perhaps the extent to which he deals in the securities! non-members.
laborated in the formation of the NASD the small dealers had
of the big out-of-town corporations which are
relatively easy;
no choice but to
to sell and are available in
join the Association and pay dues to get dis¬
supply. But if he serves the local
Now these small " dealers find a few
capital markets and deals in local issues known only in that counts.
shortsighted
community, and does a proper job of investigation and serv¬ individuals running the Association and foisting a monopo¬
icing these issues and keeping in touch with the manage¬ listic 5% mark-up limitation rule on them that would
ment and progress of the
companies and furnishing the deprive them of their inalienable right to continue in
business since they cannot possibly survive on as small a
information to,his customers,
thereby facilitating the flow
of the lowest priced capital in town, he cannot do so on a margin of profit as the large houses.
This is getting away
5% gross mark-up basis.
And if he does not do so, it will from democracy in a big way.
5.
Without delay Congress should take up the
be impossible to expect any kind of a market to exist for
Maloney
such local securities and this
being the case it will be next to Act, and the Securities Acts and define clearly their meaning
raise
Dearborn
111.—paper.
that rate
hard to
on
permitted
what
a
gross
amounts
to
a
suppliers of capita]
charge seven to ten
call loan
is
a
little
understand, unless it is because the people in
big cities and in
our government
our
$216,000,000
on
March
25, apparently reflecting a heavy
drain
savings
on
from
resulting
the March 15 income tax payment
date,
said
counts from
Associated
Press
Washington
on
ac¬
March
27. which further reported:
"The
commissions do not know through
March
total
Saturday
of
cash-ins
(March
25)
month's
at
a
redemptions
rate
are
However, Treasury
Fourth War Loan, plus income
tax paying time, tended to slow
buying in March.
000,000
more
worth
of
ed
Bank of New
of
from
the
the
York,
offer
Bank's
as
may
agent. Cop¬
be obtained
Corporate Trust
Department.
au¬
ary
are
exchanges are being effect¬
through The National City
of nearly 47%
thorities believe that record pur¬
chases during the January-Febru¬
There
The
than
$30,000,-
United
savings bonds outstanding.
States
Situation Attractive
Herzog
New
York
&
Co., 170 Broadway,
City, have prepared a
on
Bartgis Bros.,
memorandum
which the firm feels offers
an
in¬
teresting situation at the present
time.
Copies of this interesting
memorandum
may
be
had
request from Herzog & Co.
upon
[Volume 159
DIVIDEND NOTICE
Broker-D e ctl er :;Pe r s on ne 1. items Dillon, Read Group
-
"
you
'
I
(Special
-'to/The'
is
Park
■/
.{Special to The Financial Chronicle)
MASS.
BOSTON,
Pillsbury
—
II.
Bourne
with Hornblower
is
&
Weeks, 60 Congress Street.
BOSTON,
MASS.—Joseph H.
McCarthy has joined the staff of
duPont, Homsey Company, Shaw¬
mut Bank
Building.
MASS.—Maurice
BOSTON,
F.
with Trust Funds,
Inc., 89 Broad Street.
Pagnano is
now
ILL. —Mount
CHICAGO,
Hale has
become
V.
associated with
E. II. Rollins & Sons Incorporated,
135 South La Salle Street. M. Hale
formerly with Behel, Johnsen
was
&
Co., Inc., and Paul H. Davis &
Co.
(Special to The .Financial Chronicle)
GLOUCESTER,
MASS.—Ralph
M. Barker has been added to the
Wash¬
staff of Mann & Gould, 70
ington Street, Salem, Mass.
(Special to The Financial Chronicle)
'
HANNIBAL, MO.—II. II. Bright
is
Bond
with
connected
now
&
Securities
Bankers
Co., Hannibal
Trust
Bldg. Mr. Bright was pre¬
viously-with the Boone County
Trust Co. of Columbia, Mo.
.
1
r
-
INDIANAPOLIS,
J,.
has
Crane
v
IND.—Myran
become
Brailsford
with
nected
(Special to The Financial Chronicle)
Company
of
California,
has become associated with Blyth
Co., Inc., 215 West Sixth Street.
&
WAUSAU, WIS. —Eugene Mc¬
has become con¬
nected with The Wisconsin Com¬
Fashion Park Attractive
Tampa Elec. Interesting
W. C. Langley
the
& Co., 115 Broad¬
New York City, members of
New York Stock Exchange,
have
FINANCIAL NOTICE
analysis
of
Copies of this
interesting analysis may be had
prepared
an
Tampa Electric Co.
NOTICE TO HOLDERS OF
'
V
r
NEW ORLEANS, TEXAS &
from the firm upon request.
MEXICO RAILWAY
FIRST MORTGAGE
equal
Payment
accumulations
to
the
to
AND
INCOME
three six
holders
New
NOTICE
BONDS
months'
of
interest
Orleans.
& Mexioo Railway Company Bearer' ana
Registered Bonds, in the aggregate amount of
$3,425,025. has been authorized by Order No.
2371, entered September 18, 1943, of the United
States District Court, Eastern Division, Eastern
Judicial District of Missouri, as follows:
(a) for three six months' periods ended, respectively, April 1, 1939, October 1, 1939
MISSOURI
;
and
April 1, 1940 on First Mortgage Series
A
and B Bonds,
(b) for three six months' periods ended, respectively, August 1,
1939, February 1,
1940 and August 1, 1940 on First Mort¬
gage Series C and D Bonds, and
(c) for three six months' periods ended, re¬
spectively, April 1, 1942, October 1, 1942
.O
and April 1, 1943 on Non-Cumulative In¬
/?/•
.
come
Bonds.
./In pursuance of said Court Order said pay¬
ment is to be made to said bondholders on and
after
April 4, 1944, and shall be received and
accepted by them subject to the provisions and
The aforesaid Order
at the Office of the Clerk
of
said Court.
Holders of said Bonds must
obtain from the undersigned, address Missouri
Pacific Building, St. Louis, Missouri, or from
J. P. Morgan & Co. Incoi;orated, New York City,
Paying Agent, forms of letters for transmitting
to said Paying Agent, direct or through local
banks, at holder's risk (a) the Coupons.. num¬
conditions
of said
Order.
examined
be
may
respectively, 30/32, 30/32, 26/28, and
detached from First Mortgage Bearer
Bonds, and, also, from. Bonds registered as to
principal only, of the aforesaid Series A, B, C
bered,
23/25,
and (b) the Fully Registered First Mort¬
Bonds of said Series, and, also, the Non-
and D.
gage
Cumulative Income Bonds
with all unused cou¬
A separate income tax owner¬
ship certificate1 for the aggregate Interest to
bo
received
under' each
maturity,
as
in¬
dicated
above, " and" more
particularly < in¬
dicated in the required Letters of Transmittal,
should be forwarded with the Coupons or Bonds
presented. Said Paying Agent will (1) return all
Fully Registered First Mortgage Bonds, and all
Non-Cumulative Income Bonds, at owner's risk,
pons
with
attached.
notation of
the aforesaid interest accumu¬
lations payment stamped thereon, and (2) duly
make remittance covering said interest accumu¬
lations
payment on said Coupons
or
Fully Re-
five Income Bonds.
'Stered First Mortgage Bonds and Non-CumulaGUY A. THOMPSON, TRUSTEE,
NEW
ORLEANS,
TEXAS
&
MEXICO
RAILWAY COMPANY, DEBTOR,
at
March
28,
St.
Louis, Mo.
1944.
three quarters
and outstanding
of
the
owned
TO
HOLDERS
G.
F.
RAIL¬
Secretary
GUNTHER,
PACIFIC GAS AND ELECTRIC CO.
DIVIDEND NOTICE
Common Stock 'Dividend TSfo* 113
A cash dividend declared by the Board
':/; of Directors
1944, for
March 15,
on
the first quarter
year 1944, equal
value, will be paid
upon the Common Capital Stock of
this Company by check on April 15,
1944, to shareholders of record at the
to
2% of its
of the
par
close of business
on
March
The Transfer Books will
30, 1944.
not
be closed.
E. J. Beckett, Treasurer
San Francisco, California
SMELTING
STATES
|
COMPANY
J
c
UNITED
I
REFINING AND MINING
The Directors have declared
quarterly divi¬
a
dend of 1 YaTo
(87Yi cents per share) on the'
Preferred Capital Stock, and a dividend of
fifty cents (50(f) per share on the Common
Capital Stock, both payable on April 15, 1944
to
stockholders of record at the close of
business
March
31, 1944,
/
,
Parmelee
Transportation
COMPANY
6% Sinking Fund Convertible
Debentures
'Due
April
1944
1,
Parmelee
Transportation Com¬
pany will pay all of its outstanding
6% Sinking Fund Convertible De¬
bentures
on
April 1, 1944, the
maturity date. Debentures may be
delivered for payment to Guaranty
Trust
Company
of New York,
Trustee, Corporate Trust Depart¬
ment,
140 Broadway, New York
City, New York, either by regis¬
tered mail or through the deben-
The New York Central Railroad
local
tureholder's
coupons
Interest
hank.
due April 1, 1944 should
presented for pay¬
be detached and
ment
in the usual
manner.
PARMELEE TRANSPORTATION COMPANY
By Raymond J. Wyatt
Treasurer
March 22, 1944
FINANCIAL NOTICE
creasing of the capacity
other machinery.
This is
To
the
Holders
not an
Offer
of
FIRST AND REFUNDING MORTGAGE BONDS
SERIES A, F, G, H AND I.
»
Payment equal to two six months' interest
accumulations to the holders of Missouri Pacific
Railroad Company First and Refunding Mort¬
FINANCIAL NOTICE
gage Bearer and Registered Bonds, in the ag¬
gregate amount of $13,159,525. has been author¬
ized by Order No. 2370, entered September 18,
INTERN ATION AL-GRE AT
1943, of the United States District Court, East¬
Division, Eastern Judicial District of Mis¬
souri, as follows:
y'/jr.
Series A,
two six months' periods ended
August 1, 1935 and February 1, 1936,
Series
F, two six months' periods ended
September 1, 1935 and March 1, 1936,
Series G,
two six months' periods ended
May 1, 1935 and November 1, 1935,
Series
H, two six months' periods ended
April 1, 1935 and October 1, 1935,
Series
I, two six months' periods ended
August 1, 1935 and February 1, 1936.
In
ment
pursuance
is
of said Court Order said pay¬
to be made to said
bondholders
on
and
April 4, 1944, and shall be received and
accepted by them subject to the provisions and
conditions of said Order.
The aforesaid Order
may be examined at the Office of the Clerk
of said
Court.
Holders of said Bonds must
obtain from the undersigned, address Missouri
Pacific Building, St. Louis, Missouri, or from
J. P. Morgan & Co. Incorporated, New York City,
Paying Agent, a form of letter for transmitting
to said Paying Agent,
direct or through local
banks, at holder's risk, (a) the Coupons num¬
bered, respectively, 37/38, ,17/18, 13/14, 10/11
and 9/10, detached1 from the Bearer Bonds and,
also, from Bonds registered as to principal only,
of tne aforesaid Series A, F, G, H and I, and
after
(b) the Fully Registered Bonds of said Series.
A separate income tax ownership certificate for
the aggregate interest to be received under each
maturity, as indicated above, and more particu¬
larly indicated in the required Letter of Trans¬
mittal, should be forwarded with the Coupons
or
Bonds presented,
Said Paying Agent will
(1)
return
all
Fullv
Registered
Bonds,
at
owner's risk, with notation of the aforesaid in¬
terest accumulation payments stamped thereon,
and
(2)
duly make remittance covering said
interest accumulation payments on said Coupons
or Fully
Registered Bonds.
GUY A. THOMPSON, TRUSTEE,
MISSOURI
PACIFIC
RALROAD
COMPANY,
FIRST
Dated
at
28, 1944.
St.
Louis, Missouri.
MORTGAGE
/
Payments
A,
equal
BONOS
6fo External Sinking Fund Gold Bonds
B AND
to
Dated July 1, 1927, Due
C
two six
months'
Dated
interest
1, 1935
1, 1935, on International-Great North¬
ern Railroad Company First Mortgage Series A,
B and C Bonds, in t^e aggregate amount of
v
April 1, 1928, Due October 1, 1961,
and
"
.
$1,610,000, has been authorized by Order No.
2372, entered September 18. 1943, of the TJniutd
States District Court, Eastern .Division, Eastern
Judicial District of Missouri.
In
.
*
and July
ment
January 1, 1961,
6% External Sinking Fund Gold Bonds of 1928
SERIES
accumulations for periods ended January
the appurtenant coupons
,
designated in the Offer
and
pursuance of said Court Order said pay¬
is to be made to said bondholders on and
Fund Dollar Bonds, Due
April 4, 1944 and shall be received and
accepted by them subject to the provisions and
conditions of said Order.
The aforesaid Order
may
be examined at the office of the Clerk
of
said
Court.
Holders of said Bonds must
'<
-
Convertible Certificates for 3%
External Sinking
October 1, 1970.
after
undersigned, address Missouri
St.' Louis, Missouri, or from
J. P. Morgan & Co. Incorporated, New York City,
Paying Agent, a form of letter for transmitting
to said Paying Agent, direct or through local
banks, at holder's risk, (a) the Coupons num¬
bered 25/26, 17/18 and 14/15, due January 1,
1935
and July 1,
1935, respectively, detached
from the definitive Bonds, of said-Series, and
(b) the Fully Registered Bonds of said Serie3.
A separate income tax ownership certificate for
the aggregate interest to be received under each
maturity, as indicated above, and more particu¬
larly indicated in the required Letter of Trans¬
from the
Pacifio Building,
obtain
mittal,
should be forwarded with the Coupons
presented.
Said Paying Agent will
Bonds
or
return
all
Fully Registered Bonds, at
owner's risk, with notation of the aforesaid interest accumulation payments stamped thereon,
(1)
and
(2)
make
duly
remittance
or
RAILROAD
St.
COMPANY,
Louis, Mo.
Dated
at
March
28, 1944.
NOTICE OF EXTENSION
The time within which the Offer, dated June 5,1941, to
exchange
the
above Bonds and the appurtenant coupous for Republic of
Colombia, 3% External Sinking Fund Dollar Bonds, due October 1,
1970, may be accepted is hereby extended from April 1, 1944 to
December 31, 1944.
The period for
exchange of Convertible Certificates for 3% Ex¬
Sinking Fund Dollar Bonds of the Republic due October 1,
1970 in multiples of $500 principal amount has also been extended
from April 1, 1944 to December 31, 1944.
Copies of the Offer may be obtained upon application to the
Exchange Agent, The National City Bank of New York, Corporate
Trust Department, 20 Exchange Place, New York 15, N. Y.
ternal
—
REPUBLIC OF COLOMBIA
covering said
payments on said Coupons
Fully Registered Bonds.
GUY A. THOMPSON, TRUSTEE,
INTERNATIONAL-GREAT NORTHERN
interest accumulation
DEBTOR.
March
Republic of Colombia
OF
NORTHERN RAILROAD
COMPANY
ern
.<
TO HOLDERS
NOTICE
DEBTOR
By Gabriel Turbay
.
Ambassador
March 30, 1944.
1
Treasurer.
FINANCIAL NOTICE
N. Y. Cent. Offers Interest'g
Speculative Possibilities
another
/,/
GEORGE MIXTER,
March 22, 1944
dence at 814 Fifth Avenue.
improving and in¬
of certain
plant, and the
OF
PACIFIC
Preferred
Company, other
by the Company,
transfer of
to
machinery
1944
23,
per ceutuni upon the
Capital stock
than Preferred stock
payable April 1, 1944,
to holders
(other
than
the Company), of the
Preferred Capital stock of record on the books
of
the Company, at the .'close of business
on
March 25, 1944. Checks will be mailed.
issued
Company junior bonds and com¬
mon stock offer attractive specula¬
tive possibilities according to an
interesting appraisal of Central's
ing.
Future, issued by Blair & Co., Inc.,
Net proceeds from the financing
44 Wall Street, New York City.
will be added to the company's
Copies of this study, which con¬
working capital in the first in¬
tains special reference to compe¬
stance, but it is anticipated they
tition, financial position, earnings
will be used for capital expendi¬
prospects and break-even point,
tures when circumstances permit. may be had from Blair & Com¬
These expenditures are how ex¬ pany upon request.
certain
ROAD COMPANY
Texas
.
and
Goldman, Sachs & CO. and W. E.
Hutton & Co. on March 29 offered
pected to-include the
FINANCIAL NOTICE
COMPANY
<
Champion Paper &
A
detailed study of Fashion 25,507 shares of The Champion
Park, Inc., is contained in a spe¬ Paper & Fibre Co. 6% cumulative
cial circular prepared by Simons, preferred stock ($100 par) at $109
Linburn & Co., 25 Broad St., New per share flat. After the stock has
York.
Copies of this interesting been issued, all the 115,000 author¬
study may be had from the firm ized shares of 6% preferred stock
of the company will be outstand¬
upon request.
way,
York
New
has this day declared,
out of surplus of the Company, a dividend for
the three months ending March 31. 1944, of one
conservatively valued
at $12,500,000,
was
turned over
to the Metropolitan Museum
of
Art as a permanent exhibit last
January. With the collection, Mr.
Bache gave to the State his resi¬
Fibre Shares Offered
516 Grant Street.
pany,
Patterson, formerly with
Pacific
of
collection,
(Special .to The Financial Chronicle)
/
ANGELES, CALIF.—Wil
S.
quarterly dividends
Tegular
$1.50 per
share on the $6 Preferred Stock and $1.25 pershare on the $5 Preferred Stock of the Company
have been declared for payment May 1,
1944,
in 1943.
con¬
208 South La Salle Street,
Chicago, 111. Mr. Crane previously
was with
the Indianapolis office
of Straus Securities Company and
prior thereto was with Ferd A.
Meyer.
/'
:
liam
1
Com¬
&
pany,
r LOS
Fourth Avenue Building,
Gregor Wright
(Special to The Financial Chronicle)
;
Michigan Consolidated
The
Prominent Financier
Co., Inc., 49 Federal Street.
•
Street,
Jules S. Bache Dies,
R.
with W. H, Bell &
now
Broad
The Board of Directors
Financial Chronicle)
Dillon, Read & Co. headed a na¬
ANGELES, CALIF—Ann
tion-wide syndicate of 86 bankers to the stockholders of record at the close of
Trezise of San Diego has become
business April 6, 1944.
which on March 29 offered two
L. B. WIEGERS, Treasurer.
affiliated with Revel Miller & Co.,
issues of Michigan Consolidated
650 South
Spring Street.
Miss Gas Co.
securities, $38,000,000 first
Trezise was formerly with Mer¬
mortgage bonds, 3lfe% series due
rill
Lynch,
Pierce, Fenner &
1969, at 106y4% and accrued in¬
Beane.
terest, arid 40,000 shares ($100 par)
4%% cumulative preferred stock,
(Special to The Financial 'Chronicle)
at $105.50 per share.
Jules
Semon
Bache, interna¬
LOS ANGELES, CALIF.—SydProceeds from' the sale of the
tionally known financier and in¬
onia B. Chance has joined the
bonds and preferred
stock, to¬ dustrialist, died at his winter home
staff of C. A. Botzum Co., 210
gether with treasury funds, will in Palm
Beach, Fla., after a brief
West Seventh Street.
She was
be applied to the redemption of
illness. He was eighty-two years
previously with H. R. Baker & Co.
$36,000,000 first mortgage bonds, old.
4% series due 1963, $4,150,000 4%
A native of New York City, Mr.
(Special to The Financial Chronicle)
serial notes due 1944 to 1948, and
Bache after receiving an educa¬
LOS ANGELES, CALIF.—Oscar
20,000 shares of 6%
preferred tion in America and Germany,
C. Nelson, formerly with Bing¬
stock of 1927 (par $100).
worked for a time in the office of
ham, Walter & Hurry, is now af¬
The company is engaged in the
his father, a plate glass manufac¬
filiated with Nelson Douglass &
purchase, distribution and sale of turer. At the age of twenty he be¬
Co., 510 South Spring Street.
natural gas in Detroit, Grand Rap¬
came cashier of Leopold Cahn &
ids, Muskegon, Ann Arbor, Mt.
Co., bankers. Eleven years later
(Special to the Financial Chronicle)
Pleasant, Greenville and Big Rap¬ he became head of the firm and
LOS ANGELES, CALIF.—Syd¬ ids and certain
adjacent territory, the name was
changed to J. S.
ney C. Krams is now with Withand in the production, distribution
Bache & Co. The firm holds mem¬
erspoon
&
Company, Inc., 215 and sale of manufactured gas in
berships in most of the stock and
West Seventh Street. Mr. Krams
Ludington and Belding. The com¬
commodity exchanges in the coun¬
was previously with G. Brashears
pany also owns a small number
try.
& Company.
of producing gas wells and has
After Mr. Bache's entry into
gas rights on lands in west cen¬
business with Leopold Cahn & Co.
PORTLAND,
ORE. — Sam J. tral Michigan. Its business is con¬ his rise was rapid and his fortune
Young, for many years with Fer¬ ducted entirely within the State was estimated at
many millions.
ris
&
Hardgrove, has become of Michigan. The gas business He assisted in the reorganization
associated with Daugherty, Cole conducted by the company in De¬
of the Oregon Improvement Com¬
& Co., U, S. National Bank Build¬ troit was started by predecessors
pany and Glucose Sugar Refining
in 1851. The properties in Grand
ing.
•
Company and was an officer or
Rapids, Muskegon and Ann Arbor director of
many leading indus¬
(Special to The Financial Chronicle)
were acquired in 1938, the prop¬
trial and other concerns.
SEATTLE, WASH.—Melvin J. erties in Mt. Pleasant, Greenville,
Well-known as a patron of the
Scoville
has
become associated Ludington and Belding in 1942.
arts, in 1937 he gave his collection
with Conrad, Bruce & Co., 1411 and the properties in Big Rapids
to the State of New York.
The
LOS
Financial Chronicle) •'/:,,/
MASS. —John
BOSTON,
30
March
-
BOSTON, MASS.—Samuel Liv¬
ingstone is with du Pont, Ilomsey
Co., Shawmut Bank Building.
NOTICES
CITY INVESTING COMPANY
Electric Bond and Share Company
$6 and $5 Preferred Stock Dividends
(Special to The
(Special to The Financial Chronicle)
•
'
DIVIDEND
•-
Offers Two Issues Of
contemplate making additions to your personnel
please send in particulars "to the Editor of The Financial
Chronicle for publication in this column
i.'j'C. If
1325
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4268
-
Extraordinary
and
Plenipotentiary of the
Republic of Colombia to the United States of America.
of production
Progress Toward International
Economic Cooperation
naturally best suited
provide, productive •< employ¬
There would be a large net
gain in such employment, and in
the production of peacetime goods
to
ment.
going into consumption.
Fortunately the facts of inter¬
(Continued from page 1298)
victory.
By exerting ourselves
to the utmost, in cooperation with
allies,
our
enemies,
of
our
economic
the
minimize
hasten the com¬
we can
collapse
plete
costs
of
the
for
much more
longer pull,
will be needed.
The
proposed United Nations
and Agriculture Organiza¬
Food
tion should be beneficial in many
;
and above all, save lives. ways.
Considerable progress has been
We know now that we shall have
made in discussions looking to¬
another
chance
to establish a
world order that will provide se¬ ward international currency sta¬
bilization—one of the most im¬
curity against future aggression
,
opportunity to all peoples to
their lives, economically
and socially, and culturally. :
Such a world order will demand
international cooperation in a far
and
enrich
higher degree than has ever ex¬
There will have to
be
international
cooperation to
isted before.
the
keep
this
for
but cooperation
alone will not
peace,
purpose
enough.
be
in
Cooperation
needed for
is
field
the
achieve
two reasons:
expanding
an
world
full productive employ¬
economy,
ment, progressive improvement
real living standards,
in
and freedom
of want;
from want and the fear
second, for the reason that
national
world
inter¬
The
peaceful is to remain vig¬
for more than
-
the world
outbreaks of
important, and so diffi¬
of making
safe from recurring
war
is
so
cult, that we cannot
afford to run
unnecessary risks of failure.
Such a risk, amounting almost to
any
a
certainty would be ever present
the absence of international
in
cooperation.
Nations
would not cooperate indefinitely
economic
to keep
force
tween
and, if necessary, to en¬
comes
war's
the
permit anything
it remains to
of
back into full
after
effect
and
like the maximum flow of inter¬
trade.
national
of trade barriers
network
This
.
against the
outbreak of economic warfare, the
nations—should be examined crit¬
major trading nations of the world
will have to do more than merely
view
vow
insure
to
the same eco¬
made after
The economic situa¬
not to repeat
nomic
blunders
the last war.
tion confronting
the world at this
by all concerned with a
clearing away all unne¬
ically
to
obstacles to international
cessary
trade after the war.
The time to do this is now. The
they
way
for
vance
a
short of positive national
of economic reconstruc¬
tion on the part of all governments
and in cooperation with each other
will not be sufficient to prevent
economic disorder within and be¬
war ilevels
programs
tween nations.
of the early
postwar economic situation are be¬
coming clear. Many countries, par¬
increase,
substantial
trade
international
in
thing
prepared in ad¬
be
should
war's end will be such that any¬
The main outlines
over
pre¬
circum¬
permit.
The need of this country and
of others for such trade, on as
diversified a basis as possible/will
be far greater than it has ever
been in the past. Without such an
as
soon
as
stances after the war will
in
increase
trade,
international
we
shall fall far short of the goal
of
full
productive employment,
elsewhere; we shall ; not
have
a
vigorously
expanding
rope, will be devastated.
There
will
be
desperate shortages of world economy; we shall not have
nearly everything. In others, not¬ a strong economic fdundation fob;
ably the United States, there will enduring security.
I
am
not
suggesting that it
be a tremendous job of reconver¬
ticularly on the continent of-Eu¬
here
or
.
peace-time pro¬
now
in the
forces will need productive
sion from war- to
duction.
armed
Millions
employment.
The foreign invest¬
particu¬
would be either feasible
larly of the United Kingdom, will
been depleted to the point
that
they will yield far less pur¬
desir¬
sud¬
completely free trade.
The world has gotten too far away
denly
from
have
or
able for the world to go over
ments of other countries,
where
now
than
1918 and the years
We
learned
most
of
them the hard way — when the
false prosperity of the -Twenties
was shattered almost overnight—
surprises," the
pare against such
editorial warns in
power
for
I
closely
followed
who
Stockholm
the development of the Finnish
conclusion.
'
'
The
Germans,
according
to question.
when, for the second time within "Stockholms-Tidningen," wanted
Many Swedes Believe Knockout
a
single generation, war came to
prevent an Hungarian Badoglio?
Will End War
again and quickly enveloped the
regime. Although the situation is
,
globe.
different
We learned that
our
Tariff Act
paper
Plan To Have 5million Hen Overseas
lakes
By July I
Sending Farm labhinery Abroad Urgent
Pointing out that the United States
overseas
by, July, 1,
he
to
that
economic
ideal
theory.
unless
United
and
the
of
laissez-faire
I am Suggesting
peoples of the
Associated
Nations
with
20
foreign
...
cluded
among
Christmas Eve.
Since the outbreak of war, trade
made, if the FEA is the American
replied indirectly
press-radio conference to
with Iceland, Iran, and four ad¬
complaints, in Congress and else¬
ditional American republics (Ar¬
where, that farm machinery was
gentina, Peru, Uruguay, and Mex¬ being shipped abroad when Amer¬
agreements have been concluded
ico).
The latest extension of the
Mr. Roosevelt
at
his;
ican farmers
were
unable to get
authority
to
enter
into
such all they wanted;
agreements, in 1943, covers two
Information dealing with farm
ending June 1945.
machinery and other problems of
This
encouraging
experience help to needy peoples, furnished
with cooperation in the field of to President Roosevelt by Leo F.
years
trade barriers should make it far
easier than it otherwise would be
deal
Crowley, head of the Foreign Eco¬
nomic Administration was made
charged with the responsi¬
agency
bility for handling the appropria¬
tion, it .wiU, in collaboration with
the War Production Board and the
other
cies,
American
UNRRA
allocating
agen¬
of the;
machinery as
the requests
weigh
for
farm
supplies in the light
needs, the needs of the
American farmers or civilians for;
well
of
as
other
our war
farm machinery ot other
supplies
and other needs abroad.
In the preparation and con¬
"3.
constructively and effec¬
public by the President on March sideration of the UNRRA esti¬
remaining net¬ 24. Mr. Crowley in his letter to
mates particular care will be taken
work of trade restrictions, and the President declared that the
to
make sure that the limited
with the whole broad problem of "basic principle" that, in relieving
amounts of farm machinery and
international economic relations countries devastated by war, "the
other
supplies which are sent
in the postwar period.
most effective and practical thing
abroad are those which can make
that we can do is to help the lib¬
Progress toward international
the greatest contribution."
economic cooperation on a broad erated peoples to help themselves."
Mr. Crowley stated that in its
basis has been helped by progress Special adyices from Washington
24
to
the
New
York own screening of farm machinery
toward
an
effective
system of March
to
tively
with
the
from
which
this is moving out under lend-lease, FEA
The Dec¬ "Times",
the learned, quoted further what Mr, had applied the principles laid
results of the Moscow, Cairo and Crowley had to say in his letter,
down in the second and third para¬
Teheran Conferences, the resolu¬ as follows:
"In so far as it is possible and graphs above. He emphasized that
tion adopted by the Senate of the
international security.
laration
by
United
Nations,
United
States, by a vote of 85
5, and the similar resolution
passed by the House of Represen¬
tatives by a vote of 360 to 29 are
to
the most hopeful indica¬
tions
that
this
government in¬
tends to do everything in its pow¬
er in cooperation with other gov¬
ernments
to
achieve
enduring
among
peace
and security after this war.
leaders,
American farm and labor
praticable, this basic principle will
be applied in the furnishing of
immediate
emergency
relief,
so
people, as soon as it
produce for their
own needs.
Otherwise, even with
the resources of these liberated
that
can
these
be done, can
peoples,
tion
will
supplies
the
not
are
American
go
very
well remunerated for our
we were
exports of farm machinery to Aus.
tralia, New Zealand and the United
Kingdom, by their reverse lendlease
provision
food to
of
our
troops.
contribu¬
far if the
Attractive Situation
primarily of a con¬
sumable character and do not;go
imports than give early and serious thought to
directly toward aiding the liber¬
In gen¬ loosening up the world network business organizations, religious
ated peoples to help themselves."
of
peacetime trade restrictions, organizations, many other repre¬
eral, the needs of the outside
"As you mentioned in our con¬
timely and effective sentative groups, and the press,
world for dollars with which to and take
versation on this subject," said
have indicated awareness of the
buy many things we will be in a steps to do so, trade and employ¬
Crowley to the President, "we
position to produce will be vastly ment after the war will be kept necessity for United States coop¬
below
desirable
and
attainable eration to this end, not only for know that the American people
greater than the supply of dollars
will be the first to want to aid the
the purpose of establishing a se¬
levels.
readily available to them.
if. such basic
Each country's trade restrictions curity system but also for the liberated peoples
In such a situation mere avoid¬
affect
adversely
the
relatively purpose of creating economic con¬ policies are followed. The Amer¬
ance on our part on on theirs of
ican people will know that such
strong, more productive branches ditions favorable to the continu¬
new and higher barriers to inter¬
aid is not only in their own selfnational trade will not contribute of production in other countries. ance of such a system. <
interest, but is also an expression
positively to the solution of the At the same time, these restric¬
Many steps toward the objecof the traditional humanity of the
national and international prob¬ tions cut down foreign purchasing
ives set forth in the
Atlantic
American people."
lem
of
maximizing production, power for the country's own ex¬ Charter and in Article Seven of
The letter was concerned pri¬
the exchange of goods, and con¬ port products.
our
Mutual Aid Agreements re¬
Foreign tariffs, import quotas, main to be taken. Whether they marily with the policy the FEA
sumption.
Nor
will
the mere
would operate in handling farm
avoidance of another "war-debt" and discriminatory measures re¬ will
be
taken
depends
very
duce or cut off foreign markets
largely upon the people and the machinery for the United Nations
burden, or of unsound foreign
Relief and Rehabilitation Admin¬
lending and wild speculation, be needed by our export branches of Government of the United States.
■■■
; ;-V '
production.
Public and private discussion of istration.
a positive contribution.
With regard to policy on farm
The general relaxation of trade proposals advanced for achieving
The early strains will be eased
somewhat through the operations barriers and the elimination of these objectives should help * to machinery, the letter gave the fol¬
further
progress
toward lowing standards of action:
of the United Nations Relief and trade discriminations would bene¬ insure
"1. No funds subject to the con¬
Rehabilitation Administration. But fit, in each country, those branches them.
chasing
they did before the war.
&
adding that this-obviously will- be the main line of German
policy- in the near future." "It indicates," states the paper, "that th*
end of the war is not yet near;
Many surprises are still in store, an
even the Swedes had better pre-<£
organ,
plans to have 5,000,000 men
President Roosevelt on March 24 indicated that
thought this a good reason; in itself for sending more agricultural
machinery abroad. Associated Press accounts from Washington March
•
the peacetime agreements had been concluded 24, reporting this, added:
The President mentioned this
if economic warfare
of all kinds—tariffs, import quotas,
permitted to develop be¬
exchange controls, and discrimi¬
them.
- ■
In-order
known
in
and
Hungary' shows
figure in a discussion at his presscountries.
In¬
radio conference on farm machin-®
^r.;."
■
;;j
them were many
trol of the FEA will be made
end, the solution of the difficult of the most important trading na¬ ery exports. He said that less than
available for the procurement of
2 % of the available American sup¬
problems of the transition period, tions of the world outside of the
farm machinery or other supplies
and of the longer-range problems Axis.
These agreements for the ply of farm machinery had been
for the UNRRA until Congress ap¬
of economic reconstruction, will reciprocal reduction of trade bar^ exported under lend-lease and
noted that Britain, Australia and proves the authorization for United
be rendered vastly more difficult.
riers, and for general rules of
New Zealand were supplying large States participation in the UNRRAV
This; network of trade barriers fair play in international com¬
quantities of food to American and until Congress makes the req¬
is the legacy of economic anar¬ mercial
relations, helped to im¬
troops under reverse lend-lease. : ■ uisite appropriations to carry out
chy and chaos during the inter- prove our foreign trade.
They
Mr. Roosevelt first disclosed the that participation.
war years.
It has been loosened helped also to improve general
"2. After the authorization and
considerably by our own trade- relations with the countries con¬ plans to have 5,000,000 men over¬
seas by mid-year in his address on
appropriation for the UNRRA are
agreements program, but too much cerned.
statute books
peace
were
better
,
cooperation to keep the
task
widely
were
following.
far
Cooperative
efforts to solve salary payments plummet down¬
shipping and aviation ward. We saw breadlines in the
"shadow of bulging granaries.
problems will be needed.
These and other special inter¬
In 1934, with the initial pas¬
national economic; problems re¬
sage of the Trade Agreements Act,
quire, and are receiving, con¬ the United States sought to sub¬
structive ; attention.
The
most stitute economic cooperation for
basic problem of all, however, is economic anarchy and economic
the problem of trade barriers.
warfare.
Prior to the outbreak
If the network of trade restric¬ of
war, mutually helpful trade
force
few decades.
are
March 21—The occupation of
STOCKHOLM,
that the Germans will use to the utmost every chance of dominating
Central Europe, writes "Morgontidningen," leading Stockholm Labor
-
tions remaining on
and effective
orous
a
life
"Occupation Of Hungary Shows War-Si , ;
End Not Near": iorgontidningen
According to a poll taken by the
in many respects, the
Swedish Gallup Institute,. 43% of
continues; it- is reasonable the
Swedes
believe
that
the
Proposals
for
an
international of 1930, on top of those of 1921 to see in it a warning to Finland;
European war Will, not end until
bank to supplement private and and 1922, did not ensure pros¬ "Dagens Nyheter" expects parti¬
one
of the belligerents is com¬
national investment are also un¬ perity to anyone.
Too late, we san; warfare in Hungary, while
pletely conquered militarily, while
der discussion. Given the will to saw that it was just as effective "Ny Dag," a Communist* Stock¬
20% hold the opinion that the war
cooperate, it should .be possible to in stopping our own exports as it holm daily, points out that the
might end without the decisive
work out satisfactory and mutu¬ was in stopping imports.
We saw
Hungarian Government for some defeat of one of the opponents.
ally helpful arrangements in these national income, farm cash in¬
37% were undecided. •
fields.
come,
and industrial wage and time has maintained observers in
portant matters calling for effec¬
tive
international
cooperation
cooperation in the eco¬
if inter¬
nomic field is necessary
national
they
■
economic post-war
First, the obvious one of helping
to
national
more
the war,
■
Thursday, March 30, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
1326
A
Class
stock
Eastern Illinois
possibilities,
and
of Chicago
offers interesting
according to a de¬
tailed discussion of the
situation
prepared by Raymond & Co., 148.
State Street, Boston,
study
this
of
may
Mass. Copies
be had upon
request from Raymond & Co.
Situations Attractive
Four Wheel Drive Auto
Western Light and
fer attractive
ing
to
possibilities, accord¬
memoranda
Buckley
Co, and
Telephone of¬
Bros.,
prepared by
1529 Walnut St.,
Philadelphia, Pa., members of
New York and
Exchanges.
' Copies
memoranda may be
the firm upon
the
Philadelphia Stock
of
these
obtained from
request.
■
shares
?
OFFERINGS
first
CO.—25,preferred
redeem outstanding
bonds, series C (all
4%
mortgage
S-l.
23,
March
"Chronicle,"
in
Details
1944.
$109
1944.
March 23,
MONDAY, APRIL 10
share.
per
CELANESE
ELLIOTT
convertible
stock
$10)
common stock
(par
of preferred.
Of the
and
$50)
((par
conversion
for
pro¬
used to refund
outstanding preferred stock (par $100) and
balance of $1,205,000 is for working capital.
Filed March 14, 1944.
Details in "Chron¬
icle," March 23, 1944.
Offered. March 28,
1944
by F. Eberstadt & Co. at $50 per
ceeds
be
will
$1,149,000
OF
CORPORATION
:
AMER¬
shares ' of first
preferred
series (no par), stated value
$100
per
share, cumulative and 139,622
shares of common stock (no par), stated
value $1 per share.
Address—180 Madison Avenue, Netf York,
ICA.-—350,000
5 '/2 %
shares of
preferred
CO.—50,000
cumulative
$4.50
stock,
Y.
N.
such
acetate
cellulose
share.
KLINEL
the
in
yarns
5%
CO.—$500,000
BROTHERS
deciding whether
equipment, etc., $75,000; for working cap¬
ital $74,295, and for post-war expansion,
$80,000.
yarns
yarns.
United
Registration Statement No. 2-5327. Form
A-2. (3-24-44).
of
GAS CO.—
3V2s, series due
1968 and 40,000 shares 4%%
cumulative
preferred stock (par $100).
Proceeds for
refunding.
Filed Nov. 13. 1943.
Effec¬
tive Feb, 10, 1944.
Details in "Chronicle,"
March 16, 1944.
Offered March 29. 1944,
the $38,000,000 first mortgage bonds, 3Vz%
/series, due 1969 at 106 (4 and interest and
the 40,000 shares of 4%% cumulative pre¬
ferred stock at $105.50 per share and divi¬
dend.
The
offering
syndicate for both
issue? was headed by Dillon, Read & Co.,
Mellon Securities' Corp., Blyth & Co., Inc.
The First Boston Corp. and associates.
* J *'
i. '\
i
y
'-v
•
n
!'
'X1. J
MICHIGAN CONSOLIDATED
$38,000,000 first
mortgage
r
,
!
of
of
common
stock
common
6.
purposes.
.
to
25
Proceeds for general corporate
Unsubscribed
shares
under¬
by Auchincloss, Parker & Redpath.
Filed Dec. 23, 1943. Details in "Chronicle,"
1944.
16,
NEW FILINGS
' of
List
days
;
whose
registration
filed less
than twenty
issues
statements
were
grouped according to dates
registration statements will
become effective, un¬
accelerated at the discretion of the
ago,
normal
less
proceeds, $23,662,290
is
to
be
applied, concurrently with the
issuance
of the 350,000
shares of first
preferred stock, $4.50 series, to the re¬
demption of 164,818 shares of 7% cumula¬
tive series prior preferred stock and 37,710
shares of 5 % cumulative series prior pre¬
ferred
stock presently outstanding.
The
balance is initially to become part of the
corporation's general funds and as such
may be applied to any corporate purposes.
Company intends to utilize, such balance
together with a portion of its future net
earnings, and possibly also a portion of its
present cash resources, to carry out an
extensive
program
fdr additional plant
facilities.
I
Registration Statement No. 2-5323. Form
course
sec.
SUNDAY, APRIL 2
ATLANTIC CITY ELECTRIC CO.—55,000
cumulative
of
shares
will
Proceeds
$100).
preferred stock (par
be used to redeem
shares of old $6 preferred
and
purchase and cancellation of 30,592 shares
of old $6 preferred stock of American Gas
&
Electric Co.
(parent).
Stock will be
sold at competitive bidding with dividend
rate
to
be
named by purchaser.
Filed
March 14, 1944.
Details in "Chronicle,"
26,283
March 23,
MINNEAPOLIS
«
cumulative
Jaffray
Alex.
and
March
Filed
icle,"
&
2,500 shares.
Details in "Chron¬
Sons,
1944.
15,
March 23,
shares
3,500
Hopwood,
&
Brown
1944.
used to
LOUISIANA
!
POWER
&
LIGHT
CO.—
April
Proceeds
for
refunding first
mortgage 5s due 1957.
Bonds will be^sold
through competitive bidding with success¬
ful
bidder
naming
interest rate.
Filed
March
16, 1944.
Details in "Chronicle,"
March 23, 1944.
1974.
1,
5
CORP,
SPRAGUE-WARNER-KENNEY
—
shares of 6% cumulative preferred
(par $100).
Proceeds will be used
for the acquisition of a maximum of 8,649
shares of Western Grocer Co. 7% preferred
15,000
stock
in exchange of shares
and $575,000 will be
applied to retirement of 5,750 shares of 6%
cumulative preferred of Sprague at $100
also plans to issue
of installment
notes and use proceeds as ad¬
share.
per
Company
*
face
$3,250,000
promissory
ditional working
Co.,
1944.
amount
capital.
A.
Inc., underwriter.
Filed
Details in "Chronicle,"
C.
constitute
one
facturers
and
16,
March
23,
1944.
MANUFACTURING
CO.—296,015
shares of cumulative
con¬
vertible
preferred stock (par $100).
Of
the net proceeds the company will apply
$15,000,000 to the redemption and pay¬
ment of all of its outstanding 15-year 4%
convertible
sinking fund debentures due
Sept. 1, 1952, at 104.
Balance of proceeds
will be added to working capital for war
purposes and post-war business.
Offered
for
subscription to common stockholders
at rate of one share of preferred for each
six shares of common.
Subscription price
is to be announced with warrants
to be
issued to stockholders of record March 31
and to expire April 12.
Dividend rate on
preferred to be fixed later.
Underwritten
by Blyth & Co., Inc.
Filed, March 17,
1944.
Details in "Chronicle," March 23,
-
1944.
SATURDAY, APRIL 8
...ARIZONA EDISON CO., INC.—$2,500,000
bo^ds 3V2 % series, due
Offering
4,500
shares
aerial notes.
of
Proceeds together with other
of
Underwriters
—
The
business
agents be
similar
Texas, Kansas,
passed
in
filed today by
exceptions
the company put
It may also test
the Bloom report
recommendations
and
before
the
NLRB for its decision.
Alabama and Colorado.
subsidiaries
its
distributors
and
optical
of
Mo New Peaks In Factory
Employment, Earnings,
Hours In January For First Time Since July, 1940
Optical
Co.
January; for the first time since July, 1940, there were no new
In
providing
are
American
the vendor trusts and those
shareholders having a beneficial interest in
such trusts) of record on a date to be
than
(other
requires
world's largest manu¬
of the
shareholders
the
New
of the proceeds will
company's general funds
the company to pur¬
used by
to carry larger bank bal¬
and for other corporate purposes.
Registration Statement No. 2-5325. Form
(3-23-44).
S-l.
CO.—$2,500,000 sinking fund
debentures, due April 1, 1959.
The inter¬
est rate is to be completed by amendment.
Address—1122 Dumesnil Street, Louis¬
MENGEL
hourly
peaks in the National Industrial Conference Board Indexes of
largest manu¬
in
the
United States, and also manufactures cor¬
rugated shipping containers.
Underwriting—The underwriters are F.
S.
Moseley & Co., Boston; Metropolitan
St. Louis Co., St. Louis: Hemphill, Noyes &
Co., New York, and J. J. B. Hilliard & Son,
products
hardwood
of
amendment.
to
the
public
to
will
the
of
tion
bank loan, notes or
and approximately
$556,000 will be applied to the redemption
of
the
presently outstanding first mort¬
gage bonds and 5% note of Bedford Pulp
& Paper Co., Inc.
The sum of $246,300
5]/2%
ing
debentures,
and
mortgages,
and
expended
to
will be used to reimburse the company
subsidiaries
cash
for
Pulp
Bedford
acquire
Co.,
Paper
&
Inc.
proceeds,
net
the
of
remainder
The
approximately to $553,200 will
be added to general funds of the company.
Registration Statement No. 2-5329. Form
S-l. (3-27-44).
amounting
be
whose
days
twenty
offering
redemption,
mined
are
or
more
or
have
dates
ago,
not
hut whose
been deter¬
to
unknown
us.
fund gold bonds, due March 1,
being all bonds outstanding under
indenture dated as of March
1, 1937 and balance added to general funds
the company's
of company.
Registration Statement No. 2-5324. Form
A-2. (3-23-44).
value).
The dividend rate will be filed
shares
PA.—100,000
ING,
CO.
CASUALTY
AMERICAN
READ¬
OF
capital
of
one
ceeds
1944.
new
share
for
each
share
held.
expire about April 20, 1944.
Pro¬
capital.
Filed
Feb. 18,
for working
Huff, Geyer & Hecht, Inc., principal
Details
underwriters.
in
"Chronicle,"
March 9, 1944.
BEN-HUR
City, N. Y.
Business—Corporation
aries
are
and
its
subsidi¬
engaged in the business of man¬
PRODUCTS,
INC.
—
$300,000
convertible debentures, series of 1943,
Feb.
1,
1951 and 11,400 prior pre¬
shares (for purpose of conversion)
Proceeds to retire bank loans and working
5%
due
ufacturing and selling cigars.
Underwriting — The underwriting group
follows: Eastman, Dillon & Co., N. Y.; A.
G.
Becker &
Co.,
Inc., Chicago; H. M.
ferred
Chicago; Central Re¬
public Co., Inc., Chicago; Charles Clark
& Co., N. Y,; Ferris & Hardgrove, Seattle;
Hemphill, Noyes & Co., Inc., N.Y.; W. C.
Langley & Co., N. Y.; Lehman Brothers,
N. Y.; Loewi & Co., Milwaukee; McDonaldCoolidge & Co., Cleveland; Merrill Lynch,
Pierce, Fenner & Beane, N. Y.; Merrill,
Turben & Co., Cleveland; Milwaukee Com¬
pany, Milwaukee; Moore, Leonard & Lynch,
N.
Y.;
Mullaney, Ross & Co., Chicago;
Paine, Webber, Jackson & Curtis, N. Y.;
Piper, Jaffray & Hopwood; Riter & Co.,
N.
Y.;
Rogers & Tracy,
Inc., Chicago;
Stein Bros. & Boyce, N. Y.; Stix & Co.,
St.
Louis, and Dean Witter & Co., San
1943.
Byllesby & Co., Inc.,
Francisco.
Offering—Offering price *io the
be supplied by amendment.
Proceeds—Proceeds
ferred
stock,
funds,
are
In
May,
from
sale
of
together with other treasury
of
the
38,162
&
Co.
outstanding
Commodity Credit Corporation
through March 11, 1944, had com¬
pleted 121,161 .loans on 129,638,bushels of
890
of
amount
wheat
wheat in the
1943
The
$161,742,752.43.
include
made
loans
45,-
170,629 bushels stored on farms
84,468,261 bushels stored in
warehouses.
The average amount
advanced was $1,248 per bushel,
which includes some transporta¬
and
bushels of which
79.416,061
Pacific Co. of Calif, and Wyeth
Filed Dec. 20,
Details in
"Chronicle," March 9,
were' stored on
66,099,327
bushels
stored in warehouses.
On March
316,734
and
11, 1943, 533,232 loans had been
completed on 405,501,606 bushels
in the amount of $458,262,794.65.
Light
Power
&
Co.
(sub¬
sidiary) on share for share basis.
Bonds
will be offered for sale at competitive bid¬
Registration effective Jan. 10,
ding.
Filed Dec. 21,
March
SERVICE
CO.
be had from the firm upon
request.
may
COAST
OF OKLA.—$1,-
..n
iii.
Hi
lima—i
ijji.umi ml.. willw
Attractive Situations
The
in
situation
current
Du
Mont Laboratories and Loft Can¬
Corporation offer attractive
possibilities according to a memo-,
randum issued by J. F. Really &
dy
Broadway, New York
Copies of these interesting
had from the
Ill
City.
memoranda may be
firm upon
request.
'. k;
,.
N. Y. Bank Stocks
first
CORP.—$1,500,000
Dec. 31, 1955.
Proceeds to redeem $998,405 general mort¬
gage
income 6s and for working capital.
Paul H. Davis & Co. principal underwriter.
Filed Jan. 24, 1944.
5%
mortgage
bonds
due
Interest'g
Laird, Bissell & Meeds, 120
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
change, have issued an interesting
comparative analysis of leading
New York City Bank stocks. Cop¬
.
ELECTRIC
VIRGINIA
first
and
&
POWER
refunding
CO.—
mortgage
GAS
5%
cumulative preferred stock
(par $100) and $6,600,000 first mortgage
bonds,
series A 3V2 9o due Feb. 1, 1971.
Stock Is for exchange of $6 preferred of
i**—,!
1944.
and will receive cash for accrued dividends
500,000
from the highest
price in its history) according to
the study of the situation prepared
by Newburger & Hano, Stock Ex¬
change
Building,
Philadelphia,
Pa., members of the New York
and Philadelphia Stock Exchanges.
Copies of this interesting study
is selling not far
1943. Details in "Chronicle,"
1944.
16,
SOUTH
(despite
growth
for
that at current levels it
the fact
Co.,
Southwestern
bonds, series D 3Vi% due April 1, 1974 and
CO.—$18,- 305,192 shares of $5 dividend preferred
stock
to
be
issued
in
connection
with
000,000 first mortgage bonds due April 1,
merger of Virginia Public Service Co. into
1961 and 180,000 preferred shares, series A
Electric
&
Power
Co.
When
cumulative (par $50). Proceeds for refund¬ Virginia
ing. Underwriting syndicate headed by Mor¬ merger becomes effective each share of
V. P. S. 79o
preferred and V. P. S. 6%
gan Stanley & Co. and Smith, Barney &
preferred
(including
accrued
dividends)
Co. won March 28 in competitive bidding
will be* converted into 1 Va shares of new
the award of $18,000,000 of first mortgage
preferred and in addition each share of
bonds.
The winning bid was 101.0939 for
the issue as 2%s due in 1961.
Company V. P. S. 7% preferred will receive $5.50 in
V. P. S. common will be converted
also
sold
180,000 shares
($50 par) pre¬ cash.
with V. E. & P. Co. common. Each share of
ferred
stock to a group headed by the
V. E. & P. Co. old preferred will be con¬
Stone & Webster and Blodget, Inc. on a
verted
into one
share of new
preferred
bid of $50.50 for a 4%% dividend rate.
NATURAL
Broadcasting System
good yield and excellent
a
opportunity
bushels
farms
$24,500,000
1944.
OKLAHOMA
offers
13,-
named underwriters.
PUBLIC
pre¬
to be applied to the redemption
1944,
capital.
public
will
239.5 in
and
^P&tlook Attractive
Columbia
stock
(par $5), to be offered to stockholders of
March 10 at $11 per share in ratio
record
Rights
CONSOLIDATED CIGAR CORP.—40,000
of cumulative preferred stock
(no
shares
265.1 in December,
January, 1943.
Liquidations to date amounted to
below a list of Issues
registration statements were filed
present
sinking
1947,
161.4.
was
tion charges from the area of pro¬
duction
to
warehouse locations.
OF OFFERING
UNDETERMINED
We
re¬
100 Vz'/o
of
the
principal
plus accrued interest to
of $1,568,000 face
amount of first mortgage 4Va% convertible
of
figure
the
bonds
thereof
amount
date
the
CDS Wheel Loans
will be applied to the redemp¬
company's presently outstand¬
$2,844,500
at
demption
1943,
ary,
--Offering—Price to the public is 100% plus
interest from April 1, 1944.
Proceeds—Of net proceeds, approximately
DATES
Offering—Price
In Janu¬
October and November.
accrued
Louisville.
supplied by amendment.
Proceeds—Will be
applied
hours worked, and
others
of
names
and weekly earnings,
principal underwriter
to be supplied by
is named
York,
with
its
ville, Ky.
19*74
$5 cumulative pre¬
ferred stock (no par).
Contemporaneously
with the sale of these securities company
will sell to a single purchaser $750,000 of
and
and
der the Florida law.
direct test of
a
which
law
union
licensed.
Address—444 Madison Avenue, New York
CHALMERS
first mortgage
South-
Street,
to be supplied by amendment.
portion of the net proceeds
repay bank loans of $800,-
the
to
be
will
ances
par
-
Florida
Ripley & Co.,
Inc., and Estabrook & Co., head the group
of underwriters, with the names of others
by amendment.
WEDNESDAY, APRIL 5
ALLIS
case
the
ophthalmic products.
Allyn &
March
The
Of the
shares
Mechanic
will be
230,000
be
to
are
62,510
and
bridge, Mass.
Business—Company
Business—Company is the
$17,000,000 first mortgage bonds due
—
par).
laws
shares
167,490
company
Address —14
remainder
The
added
facturer
TUESDAY, APRIL 4
CO.
(no
by ten vendor trusts.
chase inventory,
preferred stock, series D (par $100).
Pro¬
ceeds for general corporate purposes.
Un¬
derwriters and amounts underwritten are
Union
Securities
Corp.,
24,000
shares;
Piper,
net
Proceeds—A
and
HONEYWELL REGULA¬
stock
that
amendment.
plied by
will be
be
MONDAY, APRIL 3
OPTICAL
common
hours worked per week, employment, total man
payrolls in 25 manufacturing industries, according
to an announcement by the Board yesterday.
filed an opportunity to purchase shares of
this offering on the basis of one share for
Hourly earnings at $1,045 equaled the figure for December and
each three shares held at a price to be
compared with $.979 in January,
named.
1943.
Proceeds—Net proceeds to the company
They were' 37.7% higher During the three-year period from
from
the sale of
167,490 shares will be
than in January, 1941, the base January, 1941, to January, 1944,
used, in part, as additional working cap¬
date of the Little Steel formula. "real" weekly earnings rose 28.3%,
ital.
Proceeds
from
sale
of
stock
by
The length of the average work
At
$47.42 in January, average
vendor trusts will go to the selling stock¬
holders..
weekly earnings were above the week in January was 45.2 hours
A-2. (3-22-44).
Registration Statement No. 2-5328. Form
$47.15 (revised) figure for Decem¬ against 45.1 in December. In both
A-2. (3-25-44).
ber, but below both October and October and November, however,
TUESDAY, APRIL 11
November. In January, 1943, they the average work week was 45.5
SATURDAY, APRIL 15
KATZ DRUG CO.—$1,500,000 15-year 4 %
In January, 1943, it was
were
$43.5-3.
The increase since hours.
sinking fund debentures due April 1, 1959.
NATIONAL CONTAINER CORP.—$4,500,44.3 hours.
Address—1130
Walnut
Street,
Kansas 0C0 5 % 15-year sinking fund debentures January, 1941, was 54.9%.
Cityi Mo.
;
The
man
hours
index
(1923
due April 1, 1959.
"Real" weekly earnings, or dol¬
Business—Principal business is the oper¬
Address—Borden
and Review AvenUes,
lar earnings adjusted for changes equals 100) was 136.2 in January
ation of retail drug stores.
Long Island City, N. Y.
in living costs, in January at 171.5 against
137.2 in December and
Underwriting.—A. G. Becker & Co., Inc.,
Business—Engaged in the manufacture
Chicago, - is named principal underwriter, and sale of kraft pulp, kraft paperboard,
(1923 equals 100) were higher 131.7 in January, 1943. The pay¬
with names of others to be supplied by
corrugated and solid fibre shipping con¬
than the 170.5 (revised) for De¬ roll index, also on a 1923 base,
amendment.
tainers.
Offering—Price to the public will be sup¬
cember,
but
below
September, stood at 264.1 in January against
Underwriters—Van Alstyne, Noel & Co.,
000.
1944.
TOR CO.—30,000 shares of 4%
will offer to
the right to
of
a valid defense to urge that
will the business
agent of the union
go to the Supreme Court if the
had failed to obtain a license un¬
NLRB upholds its trial examiner.
is not
The. controversy probably
Underwriting—Harriman
Proceeds—Of
facing the problem of
is
The trial examiner ruled that it
and
Government
Federal
the
offered by
represent
shares presently outstanding and to be sold
total
for additional shares
ment.
which
on
in
stock
common
of common
stock at the rate of one share for each
ten shares held, such rights to be granted
to the holders of common stock on a record
date to be fixed by the board of directors.
Offering price will be supplied by amend¬
written
March
its
of
subscribe
fit $16 per share in ratio of one for each
two held.
Rights expire 3 p.m. EWT on
April
corporation
Offering—The
holders
regis¬
par)
THURSDAY, APRIL 13
AMERICAN
shares
the
ment.
INC.—139,460
(no
117,460 shares offered
stockholders of record March
which
*—
preferred
the
headed by Dillon,
.
AIRLINES,
NORTHWEST
shares
tered,
,
The underwriting group
and common stocks is
Read & Co., and Morgan
Stanley & Co., both of New York, with
names of others to be supplied by amend¬
/Underwriting
for
Board
an
those resident in the State.
States.
1
Lacking State License
Relations
Labor
employer who refuses to deal with a union
sinking fund notes, due March 1, 1954.
representative lacking a State license is guilty of violating the Na¬
Address—132 West 31st Street, New York
tional Labor Relations Act, said a special dispatch from Washington
City, N: Y. ;
on March 22, to the New York "Times" which continued:
Business—Company operates, either di¬
rectly or through subsidiaries,
18 retail
The NLRB was advised by Eppinger & Russell Company of
department stores located in various cities
Jacksonville, Fla., that an interim^
1
in the States of Illinois, Michigan, Ohio,
report by Frank Bloom, NLRB
The company refused to bargain
Iowa, Missouri and Georgia.
Anne
Mathews,
business
Underwriting — Illinois Securities
Co., trial examiner, which had held with
•Toilet, 111.
the company guilty of violating agent of Local 4A, United Agri¬
Offering—Price to the public is 100.
cultural Packing and Allied Work¬
the Labor Act, was itself a viola¬
Proceds—Net proceeds will be applied as
ers
of America
(CIO), alleging
follows;
To redemption
of $243,600 face tion of the 10th Amendment of
amount of 5 9c sinking fund notes, due May
she did not have a State license
the
Federal
Constitution.
This
1, 1952, at 100, $243,600; to renewal of
to pursue her work,
v
amendment deals with the powers
and sells cellu¬
and fabrics containing
Is' the largest producer of
acetate
National
The
WEDNESDAY, APRIL 12
Business—Manufactures
lose
Employer Refusing
To Deal With Union
(3-23-44).
$2,538,000 of which are
1944. Offered March 29, 1944 by Goldman,
Sachs & Co. and W. E. Hutton & Co. at
HLRB Receives Case of
Registration Statement No. 2-5326. Form
used to
be
will
funds
•
FIBRE
&
pre¬
accrued
dividends.
owned by Equitable
507
shares
of
6 % ■ cumulative
Life
Assurance
Society
of
the
United
gtock (par $100).
Proceeds for working States), all outstanding seconcl mortgage
capital and capital expenditures.; .The un¬ 6%
income bonds,
series A and second
derwriters and shares purchased are: Gold¬
mortgage
5%
income
bonds, series B.
man, Sachs & Co.,
12,753 shares and W. Coffin & Burr, Inc., 'underwriters.
Filed
E. Hutton & Co., 12,754.
Filed March 18, March 20, 1944.
Details in "Chronicle,"
PAPER
CHAMPION
cumulative prior
its' 61/2%
of
ferred stock at $105 per share and
Flotations
Calendar Of New Security
.
1327
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4268
Volume 159
to
merger
will
date.
V. E. &
outstanding.
remain
offered
at
sale
through
Filed Feb.
28,
"Chronicle," March 16,
ding.
P. Co. common
Bonds will be
competitive
1944.
1944.
Details
bid¬
in
ies
of
this analysis
from the firm upon
may
be had
request.
Attractive Situation
Empire
cording
randum
to
a
Corporation
of¬
possibilities
Steel
attractive
fers
ac¬
detailed
memo¬
being distributed by Hill,
Thompson & Co., Inc., 120 Broad¬
way,
New York City.
this interesting
be
had
upon
Copies of
memorandum may
request from Hill,
THE COMMERCIAL & FINANCIAL CHRONICLE
1328
Trading Markets
Firm
New
For Dealers
Teletype—N. Y. 1-971
HAnover 2-0050
Thursday, March 30, 1944
.
•
England Pub. Serv.
•
American
;
Distilling
Plain
all
Electrol
BONDSi
SO. AMKKICAN
Incorporated
N.Y., NewHav. & Hartf.
Missouri Pacific
Common Stock
issues (■,
'
.
r*ARL MARKS & HO. Inc.
1.
'
"
1
1
1
'1
Manufacturer of Hydraulic Controls and
•!«■(I?
'
•
Old Common & Preferred
\
Assemblies
for Present and Post-War Products
FOREIGN SECURITIES
M. S. Wien & Co.
SPECIALISTS
New York 4# N« Y.
50 Broad Street
=====
Trading Market and Information
Members N.
request
on
Y. Security Dealers Ass'n
25 Broad St., N.Y.
Teletype
AFFILIATE: CARL MARKS & CO. Inc. CHICAGO ======
HAnover 2-8780
Y.
n.
1-1397
Kobbe, Gearhart & Company
Governments"
"Our Reporter On
INCORPORATED
Members
York
NASSAU
4 5
By E. P. TEE
New
Association
Dealers
Security
ST RE E T,
u'
\
YO R K
NE W
,
Denver & Rio Grande R.R.
5
Preferred^ (Old)
,
commercial banks slated to come back into the war-
Are "the
after being eliminated
f § / |
financing program again in a substantial way
drives?
from the past two
,
.
<
.
is scheduled for early in June.
The Fifth War Loan drive
announced the goal at
Morgenthau has
Secretary
apparently
1-576
york
new
Enterprise 6015
Common
ury's ability to raise sufficient funds in these successive drives to
meet the requirements of the situation, even though oversubscrip¬
tions have been reported in each instance. . . .
Chester Bowles Favors Early End
.
removal
when this will be, of course, will
I
developments
on
price
rationing
and
from
"Conversion
to
war
a
as
subject, I
.
(Old)
SOLD
—
R.R.
Preferred
&
—
(Old)
QUOTED
30
N.
Pine
Y.
Security Dealers Ass'n
Street, New York 5
Tel. WHitehall 4-7970 Tele. NY 1-2218
controls wherever they existed.
which
be exactly appraised. But
read
of
a
some
am
Aeronca Aircraft
.
.
;i
L. D. SHERMAN & CO.
Members
opinions on the peace basis in heavy industries
inclined to think my can hardly be immediate. Retool¬
own view is more optimistic than
ing plants for the manufacture of
that of most others,
automobiles,
refrigerators
and
Bank of New York in its February "Review."
"It is well remembered that the household equipment rather than
After discussing the President's budget message and explaining inflationary pressures of the first of
guns, tanks and planes will
'the adjustments in arriving at net public borrowings, the bank World War reached a peak well take time
just as did the reverse
stated: "After these adjustments, net public borrowing is estimated after that conflict was over. Com¬
procedure in 1940-42.
at $52,700,000,000 for fiscal 1945, compared with $54,200,000,000 for modity prices, for example, con¬
"But, as outlined, we have al¬
fiscal 1944.
tinued to rise until the summer of
/
ready begun to lay plans to carry
"The amount of this borrowing, which will have to be obtained 1920, nearly two years after hos¬ out
reconversion,
plans
which
through the banking system, wttl depend, of course, on the net tilities ceased;
were lacking in World War I.
In
"The basis for that development
absorption of Government securities by individuals, corporations and
addition, our manufacturing ca¬
was the lack of realization by in¬
institutional investors.
During the calendar year 1943 net tak¬
pacity is much greater today than
ings by non-banking investors (excluding Federal agencies and trust dustry of the extent of the pent- when we entered this war, with
up demand for non-war1 goods,
funds) amounted to about $28,000,000,000.
Unless this net absorp¬
about 20 billion dollars worth of
tion by non-banking investors is increased substantially, the banking which had been built up during new factories built in the interim.
question of commercial bank participation doubtless will be recon¬
sidered.
Indication of this was given by the Federal Reserve
Common
BOUGHT
(Continued from First Page)
cannot
raised from nonmaterial change from previous drives, the
If the next loan demonstrates that the amount
.
Preferred
Pacific
Missouri
Of Iftice And Rationing Controls
depend
COMING LOAN A TEST
bank investors shows no
&
Preferred
$16,000,000,000.
dubious about the Treas¬
are
2-3600
:r
N. Y. New Haven & Htfd. R.R.
Western Pacific R.R. Corp.
description of the issues to be offered and the terms of the
drive are expected over the coming week-end. ... It is generally
believed that the commercial banks will again be excluded. . . .
However, some officials
REctob
Teletype
Bell
telephone
philadelphia
.
A
'
j
telephone
.
Gil
Bareco
Cuba
Co.
Eastern Footwear
Eitingon-Schild
Electrol Inc.
.
.
,
.
.
cated by the budget estimate."
.
.
the
In
short, the Federal Reserve Bank of New York apparently
thinks that the Treasury's drives to date for investor funds is falling
short of the job of raising the necessary money to meet the costs
of the war outside the commercial banking system.
This means
resumption of bank participation in future war financings, unless
the various drives make considerably deeper inroads iiito the pub¬
lic's wartime savings.
...
savings
available
are
as
by
surveys
the
Securities
and
Exchange Commission, the Federal Reserve banks and Life Insurance
Institute indicate.
They must be transferred from bank deposits
.
to
.
.
bonds, which means that in future drives particular emphasis
be placed on selling special groups and sections such as the
war
must
farmers
the
and
cream
the
centers.
war
off the market.
.
.
.
.
.
.
It is
Previous
now
frequently than in the past.
jnore
drives
necessary
have
skimmed
to ring doorbells
.
ing to
Inasmuch
as
the banks
reserves, any increased
are
now
functioning with limited
participation in the
war
excess
financing will
neces¬
or
this
de¬
thought
was
meet
to
as
so
Little
no
given to details of the reconver¬
problem while the war was
or
even
immediately there¬
"From
after.
"Today, although we are still
of
but in
.
requirements.
reserve
.
.
.
;3.
.
budget deficit and
render
before
post-war
we
period,
in
stated
its
is
It
March bulletin:
'
"In
possible that with the levelling off of economic activity
and
currency.
.
.
.
The
course
of
action
pursued
public in this matter will largely determine the amount
by
of
the
in
mand
the
If
Insurance Stocks
....1306
Broker-Dealer Personnel Items
Calendar of New
Mutual
Our
Reporter
Our
Reporter's
1325
Security Flotations 1327
...
..........
Funds
on
Report............ 1305
Railroad Securities
120
Real Estate
Telephone
Bell
New York 5
COrtlandt 7-0744
Teletype NY 1-886
could
Utility Securities
1302
1303
Securities................ 1305
Security Salesman's Corner.........
Tomorrow's
Says
Markets—Walter
Federal Machine & Welder Co.
Goodall Worsted
Hearst Cons. Pub. A
Long-Bell Lumber Co. Common
*
Lukens
Steel
let
Maguire Industries
the first
be gathered.
Mallory
Moxie "B"
emphasize
me
of
work
who
us
Nu-Enamel
Remington Arms
Stromberg-Carlson
OPA.
for
Tennessee
responsibilities.
We work long hours under heavy
and conflicting pressures. In those
,
lines
Reserve
this
viduals in
System
statement
carry
few
large
instances
have
made
tinue
coffee
be
will
means
a
it
Wickwire-Spencer
conditions
where
Other Issues Traded
possible to discon¬
control
program,
such
as
have unhesi¬
tatingly done so. We will welcome
the day when we can do likewise
on
all products now subject to
rationing or price controls."
rationing,
Products
Warren Bros. "C"
we
"
T2 0 B ro a dway,
COrtlandt 7-9400
New
YprlTYIJk
! -" TeletypejsfYtL-
need to supply
during
the
year
...
as to the
savings by indi¬
It also indicates clearly that in
anything, it indicates doubt
1323
Whyte
.....1322
Treasury securities.
the event that the
...
Empire Steel Corp.
(formerly
commercial banks need additional reserves, pre¬
&
Empire
Sheet
Tin Plate)
sumably to aid in the Treasury's war financings, these will be sup¬
plied through open-market operations rather than through a general
reduction in reserve requirements.
.
'
.
follows:
the
time, the banks
.
.
.
scale
.
to
Treasury
are
likely to be called
issues
in
large
amounts
upon
to
this
Markets
gap.
120
To make this possible, open-market operations on a large
will
reserve
be
to
by
central
will
be
maintained at
resorted
requirements
banking
authorities
the current
and
rates.
available
upon
Rill, Thompson & Co., Inc.
again to sub¬
close
Memorandum
request
Banking officials question whether the Treasury's periodic
bond drives alone will close the gap that the budget estimate
indicates must be met.
Since an increase in taxes is out for
scribe
First Mortgage 6sy 1948
.
The outlook, therefore, appears to be about as
...1323
Governments.....1328
w. t. bonn & co.
Public
1310
,.1308
Municipal News and Notes.
Broadway
those
Crowell-Collier
Eastern Corp. Common?
as
extent of future increased investment of wartime
Canadian Securities
arrears
We
brought into balance, permitting
INDEX
Illinois Pow. div.
en¬
through purchases of Government securities."
Eastern States Pfd.
Stand. Coated Prod. Pfd.
''V
Germany
closing,
those
real
"Naturally, the conversion proc¬
in the soft goods industries,
clothing, shoes, etc., ought to take
less time than in heavy indus¬
tries. I should anticipate that, in
a relatively few months after de¬
feat of Germany, supply and de¬
which
Pressurelube
with
Cliffs Corporation
funds
Tennessee Products
Bank and
Autocar Co. Common
that there is no group of people
in the country who are quite as
anxious to be rid of controls as
ess
the growth in bank deposits and
currency may be smaller this year
than last, but the amount of individual and business
income in
excess
of current needs will continue
large and it is difficult to
know how much of the consequent
growth in liquid assets will be
held in the form of Government securities and how much
in bank
deposits
the
both
entered
of
European harvest can
convert the balance of our manu¬
even
Engineering
France & Foamite
controls until such time after sur¬
fight the remaining
conflict, presumably with Japan,
and could immediately proceed to
to
likely from individuals is. emies defeated.
apparently what the Federal Reserve Board had in mind when it
Aetna Standard
American-La
are
.
The gap which looms between the estimated
the drive subscription totals that appear
consumer
wars,
ment
supplying of the banking system with additional excess
facturing plants -to peace-time
readily investable funds.
This can be provided either
output. In other words, need for
heavier open-market purchases or a general reduction in controls
might shrink materially
or
through
standpoint, in
original maker
durable goods prod¬
ucts, vacuum cleaners, refriger¬
industry and govern¬
intensively planning ators, automobiles, etc., has final
control over the price at which
means of shifting back to a peace¬
his product passes to the con¬
time economy with the
miijtimum sumer;
Consequently, our price
of disruption.
controls in this field during the
"This
procedure
should
be
reconversion and immediate post¬
smoothed if, as seems likely, the
war
period may be of a greatly
war
with Germany and the war
with Japan end at different times. simplified type.
"On food,
we shall probably
We would then need to continue
have to retain price and rationing
war production only to the extent
two
Trading Markets i
another
most instances the
'
one
Street, New York 4, N. Y.
Telephone HAnover 2-4341
only a portion of these plants to
peace-time output.
sion
on
involved not alone in
SO Broad
supply and demand in consumer
goods industries could well be re¬
alized
following conversion of
the
reserves
MORRIS STEIN & CO.
Over-the-counter Securities since 1924
between
balance
reasonable
A
basis of peace-time manu¬
a
required
RESERVE POSITION
sitate
and tardiness in convert¬
war
facture
.
MEETING THE NEEDS
The
Select Theatres
.
mand.
/
Loft Candv
Remington Arms
.
system will still be called upon to furbish between $20,000,000,000
and $25,000,000,000 annually if the deficit is of the magnitude indi¬
•
Kellett Aircraft
and
Situations
Tel. REctor 2-2020
.
for Dealers
Broadway, New York 5
Tele. NY 1-2660
@FedFRASER